Sales Tax Instructions

Sales Tax Instructions, 2009
10. At the end, the CBR request your Association to join Government‘s
efforts and resolve for documentation of the economy and for implementation of invoicebased
sales tax in VAT mode at all stages, including the processing stage. All your
members, still paying sales tax in any mode (including fixed sales tax or SSTP) other
than the invoice-based VAT system, as prescribed in the Sales Tax Act, 1990, may be
CAUTIONED that they are doing it at their own risk and that they should immediately
pay sales tax in a normal VAT- manner and should also issue prescribed tax invoices.
[Note: Para 6, 8 & 9 of the letter substituted by letter 4/84-STB/97 Dated 01.02.2000]
[Issued by the CBR, Islamabad under the signature of Mr. Abdul Basit Chaudhry,
Secretary (STB). addressed to All Pakistan Textile Processing Mills Association, Karachi Copy
endorsed to all the Collectors of Sales Tax/Mirpur (AJ&K) for information and necessary action,
SA to Chairman CBR, S(STP), S(STT), S(STM), S(ST.Int.Audit), S(ST Ext.Audit) and Secretary
(STE) CBR.]
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C. NO.1/(43)STR/99 DATED 18 TH JANUARY, 2000
SUBJECT:-
DEVELOPMENT TAX
I am directed to invite your attention to the Cabinet Decision in case
No.211/23/99, dated 11-12-1999, by virtue of which the development Tax notified vide
Circulars Nos. 2/99 and 3/99, dated 14 th and 20 th September, 1999, respectively, has been
annulled. As a result, the Development Tax is to be deemed never to have remained
applicable for a single day.
2. As a result of the annulment of Development tax with effect from the
date of its issue, the provisions of the Sales Tax Act, 1990 relating to retail stage taxation
will become operative. However, the Cabinet has approved that retail traders with
turnovers below rupees five million per year are neither to be visited by any tax official
nor any notices are to be issued to traders in this category for the time being. Unless there
are instructions to the contrary from the CBR, such retail traders with turnover upto
rupees five million per year are to be left alone by the Sales Tax Collectorates and
officials, however the, the CBR would issue advertisements to remind this category of
traders to enroll on a voluntary basis.
3. So far as the long-term reform is concerned, the CBR would be under
taking a series of discussions with representatives of retail traders both in the category of
rupees one to five million annual turnovers as well as these above it. The objective would
be to evolve a tax system in which such traders do not face any real or perceived
harassment and their consequential income tax apprehensions are also addressed. Further
instructions on the subject will be issued by the Board with the passage of time and in
accordance with the consensus, which would emerge through on going discussion with
the traders.
4. So far as retailers with turnover in excess of rupees five million are
concerned, the CBR would soon advertise in the newspaper that such traders are required
to register voluntarily. The Collectorates may also ascertain the names and addresses of
the really large retail traders through consultation of other data-base and trader directories