Sales Tax Instructions

Sales Tax Instructions, 2009
2. Since the above said products at S. No.ii & iv are used in agriculture as fertilizers
therefore, if some body has to import for agricultural purposes, then he should first inform the
MINFAL and get their certificate that the product will be used as fertilizer for agriculture
purposes only. This mechanism will help to check the misuse of the concession extended on
fertilizers. Moreover, the quantity imported will be about a shipload of 10-25,000 tones due to
high value required in agriculture.
(Mahar Sher Muhammad)
Section Officer, Ministry of Food, Agriculture and Live Stock
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Copy of CBR‘s O. M. No.1/57-STT/97, dated 3 rd December, 1998 is reproduced below:-
CBR‘s, O. M. NO.1/57-STT/97 DATED 3 RD DECEMBER, 1998
SUBJECT:
EXEMPTION FROM SALES TAX TO ―FERTILIZERS‖.
The undersigned is directed to say that fertilizers classifiable under Chapter 31 of the Pakistan
Customs Tariff are exempt from sales tax under Sl. No. 17 of the Sixth Schedule to the Sales Tax
Act, 1990.
2. Importers of products like Sodium Nitrate, Ammonium Nitrate, Potassium Chloride are
claiming exemption from sales tax on the grounds that these too are classifiable under chapter 31
of PCT and provide Nitrogen and Potassium to the soil to maintain Its NPK value, a prerequisite
for the growth and fertility of plants. However, the fact remains that these chemical compounds
(Sodium Nitrate, Ammonium Nitrate, Potassium Chloride, etc.) are chemical compounds having
multiple uses besides being capable of use as fertilizers.
3. Ministry of Food & Agriculture is requested kindly to advise if it is a policy of the
Government to extend the benefits of tax concessions on imported fertilizers to these chemical
compounds (Sodium Nitrate, Potassium Nitrate, Potassium Chloride, etc.) too. It may also please
be advised as to how the misuse of concession on the non-fertilizer use of these chemical
compounds can be checked to avoid loss to the exchequer.
4. An early advice is requested.
[Issued by the CBR, Islamabad under the signature of Mr. Nisar Muhammad, Secretary (STT),
addressed to the Secretary, Ministry of Food, Agriculture and Livestock, Government of Pakistan,
Islamabad.]
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C.No.1(2)STM/99/Pt-IV DATED 26 TH NOVEMBER, 1999
SUBJECT:- TAX DEFAULTERS – PLACEMENT ON ECL.
I am directed to refer to the Board‘s recent correspondence resting on the subject
of recovery of arrears from defaulters.
2. Earlier the term ―defaulters‖ was used according to definition existing in
the relevant tax laws. However, the matter has been reconsidered and it has been decided
that such of the tax defaulters as are ―persons who voluntarily agree to make the payment
of all tax dues in equal installments in a manner that the arrears are liquidated well before
15 th June, 2000‖ may be considered for exclusion from the defaulter‘s list for ECL
purposes.
3. It is, therefore, advised that renewed efforts should be made and where
defaulters voluntarily come up to pay the arrears (of principal amount of sales tax plus