Sales Tax Instructions

Sales Tax Instructions, 2009
• Budget FY 2006-07 is aimed at simplification of tax system, improvement in
resource mobilization, boosting economic activity to ensure robust economic
growth, reducing the cost of doing business for trade & industry, reducing tax
burden for lower income start of the society and promoting a taxpayer friendly
culture.
• The following budgetary measures will add further to these objectives.
Relief for the taxpayers by providing concessions and rationalizing the
Excise tariff, thereby creating a conductive and business friendly
environment for the taxpayers.
Broadening of Tax Base by minimizing exemptions and bringing more
services in the excise regime.
Simplification of tax laws to make them easier for the taxpayer and
compatible with international best practices.
Removal of irritants and impediments in fiscal laws and procedures.
Reducing the cost of doing business by furthering the automation of
business processes and minimizing taxpayer interface.
Improving tax compliance through better relationship between taxpayers
and tax officials as well as by introducing stronger penalties for
deliberate & repeated offences.
BRIEF POINTS ON INDIVIDUAL BUDGETARY MEASURES:
RELIEF MEASURES
• Withdrawing excise duty on travel by train.
Travel by train in air-conditioned and first class sleeper is chargeable to
excise duty @ 12.5%. Measure is aimed at providing relief to the general
public.
Enforced through Notification SRO 562(I)/2006 dated 05.06.006,
effective from the 5 th June, 2006.
• Zero-rating of sales tax on dairy products and stationery items.