Sales Tax Instructions

Sales Tax Instructions, 2009
3. In other words, there shall be no implication of amendment in SRO 881(I)/80
dated 23 rd August, 1980 done through SRO 979(I)/99 dated 30 th August, 1999 and goods
imported into EPZ shall be granted zero-rating in terms of Serial No.5 of the Fifth
Schedule to the Sales Tax Act, 1990, read with section 5 of the Sales Tax (Amendment)
Ordinance, 1999.
[Issued by the CBR, Islamabad under the signature of Mr. Abdul Razzaq, Secretary (STP)
addressed to all the Collectors of Customs and all the Collectors of Customs & Excise. Copy to
the Secretary (ST.Edu.),CBR.]
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SALES TAX CIRCULAR NO.2/1999.
F.No.1(43)STR/99 DATED 14 TH SEPTEMBER, 1999
SUBJECT:-
DEVELOPMENT TAX.
In pursuance of unanimous decisions taken in the meetings with representatives
of trade community held on the 8th and 9th September, 1999, it has been decided that the
shopkeepers and retailers, other than a private limited company or a public limited
company, whose annual turnover during the last 12 months was less than Rs.5 million
shall, in lieu of 2% turnover tax payable under section 3A of the Sales Tax Act, 1990 and
1% Income Tax payable under Income Tax Ordinance, 1979, pay, in the manner
hereinafter provided, the sum (known as Development Tax) at the rate of 0.75% of the
turnover on all supplies except the food items ( listed in Appendix-I to this Circular) on
which the rate of Development Tax shall be 0.5%(Development Tax Scheme).
2. The Development Tax shall be payable across the board and shall be
compulsory for all shopkeepers and retailers whose annual turnover does not exceed Rs.5
million. There shall be no exemption in relation to description of goods or quantum of
turnover below the said threshold of Rs.5 million.
3. The Development Tax shall be payable w.e.f. 16th September, 1999 and
shall remain in force upto the 30th June, 2001.
4. The shopkeepers and retailers with annual turnover of less than Rs.5
million shall have the option to get them registered under the Sales Tax Act and pay GST
@ 15% under the normal VAT regime.
5. The Development Tax shall be paid quarterly in any of the branch of the
National Bank of Pakistan through a challan (Appendix-II), payable by the last working
day of September, December, March and June for the quarters ending 15th September,
15th December, 15th March and 15 th June.
6. The collection of the Development Tax shall be enforced and monitored
by a Development Tax Advisory Committee comprising six members from each Province
and two members from the Federal Capital Territory. The Development Tax Advisory
Committee shall, initially, meet every month to ensure proper compliance and
implementation of the Development Tax Scheme. The Committee may form Provincial,
Divisional, District, City/Town and Market Committees for the purpose of the enforcement,
collection and monitoring of the Development Tax.