Sales Tax Instructions

Sales Tax Instructions, 2009
7. The Development Tax Scheme shall not affect the following:-
(a) the normal GST regime which shall remain in force for the
manufacturers, importers, wholesalers (including dealers), distributors
(including stockists), suppliers and such shopkeepers and retailers whose
annual turnover exceeds Rs.5 million;
(b) the persons not registered under the normal GST regime shall continue to
pay further tax @ 3% under section 3(1A) of the Sales Tax Act, 1990, in
addition to the standard rate of 15% on taxable supplies made to them;
(c) the persons not registered under the normal GST regime shall not be
allowed to claim any input sales tax credit/ adjustment/refund, etc;
(d) the persons not registered under the normal GST regime shall not be
allowed to issue the prescribed sales tax invoices; and
(e) the right of a taxpayer, under the Sales Tax Act, 1990, to opt for sales tax
registration for payment of sales tax at standard rate in a normal VATmode,
instead of payment of Development Tax.
8. Payment of Development Tax shall discharge all income tax and sales
tax liabilities of the shopkeepers and retailers with annual turnover of less than Rs. 5
million (without any adjustments/credits/refunds). Persons paying Development Tax shall
be immune from visit, inspection and audit by the Income Tax and the Sales Tax
Departments.
9. All issues relating to Development Tax shall be resolved by the
Development Tax Advisory Committee.
[Rescinded vide Sales Tax Circular 01/2000 dated 19.2.2000]
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(See para 1 of the Circular)
LIST OF FOOD ITEMS
Appendix-I
1. Live animals.
2. Agricultural produce of Pakistan not subjected to any process of
manufacture.
3. Cereals, grains and pulses, whether or not milled, hulled or polished, packed or
not.
4. Vegetables and fruits and juices.
5. Eggs.
6. Poultry, mutton, beef, fish and bovine animal meat, (except those sold under
brand name or trade mark).
7. Fresh or dried milk, plain yogurt and lassi.
8. Cream, whey, butter and cheese except those sold under brand names or trade
marks.
9. Breads, nans, chapattis, sheer malls, bun, rusk, vermicillis.
10. Ice and water excluding mineral waters.
11. Desi ghee, vegetable ghee and vegetable oils.