Sales Tax Instructions

Sales Tax Instructions, 2009
TOTAL
Name of Registered Person Authorized seal
Registration No.
and signature
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C.NO.1(3)CEB/04 (Pt) DATED 25 TH APRIL, 2006
SUBJECT: DETERMINATION OF INPUT / OUTPUT RATIO FOR
COOKING OIL / VEGETABLE GHEE
I am directed to refer to the subject noted above.
2. It is to point out that the Sixth Schedule of the Sales Tax Act, 1990,
provides exemption form payment of sales tax on edible oils (specified headings),
cooking oil and vegetable ghee. These items are subject to levy of FED at import and
manufacturing stage as noted in First Schedule to the Federal Excise Act, 2005; and the
FED so levied is payable in VAT mode. To ensure proper payment of sales tax on these
items, it was decided to levy a fixed duty on import of edible oils, in addition to 15%
normal import stage levy, at Re.1/kg, in lieu of net FED payable at manufacturing stage.
It is further pointed out that no input tax adjustments in respect of ghee / oil manufactured
from imports subject to fixed FED, as noted above, are allowed.
3. The manufacturers of ghee / oil have approached the Board for
repayment of fixed FED and other input sales tax and FED, in relation to exported goods.
The Board intends to authorize the payment of rebate of Federal Excise Duty as paid at
Re.1/kg and also that paid at 15%, as noted above, through a notification to be issued
shortly. It has also been decided, in terms of section 61 of the Sales Tax Act, 1990, to
allow repayment of the sales tax as paid on purchase of other input items such as
electricity, gas, chemicals, tin plate, etc. consumed in manufacturer of exported goods.
4. Therefore, IOCO is requested to carry out input-output analysis in
respect of various types of cooking oils and vegetable ghee and forward its
recommendations for further action by the Board. It may be pointed out that such analysis
will be required in respect of oils manufactured from imported inputs falling in purview
of SRO 24(I)/206 as the oils made from local and other imported inputs such as seeds
will continue to operate in VAT mode and refunds will be paid on the basis of normal
return.
5. In this respect Pakistan Vanaspati Manufacturers‘ Association will
provide all requisite assistance to IOCO.
[Issued by the Government of Pakistan, Revenue Division, C. B. R. (Sales Tax & Federal
Excise Wing), Islamabad, under the signature of Mr.Abdul Hameed Memon, Secretary (ST&FE-