Sales Tax Instructions

Sales Tax Instructions, 2009
brokerage, credit card processing & renewal, foreign exchange dealing
and issuance of bank guarantee, etc.
Enforced through amendment in the First Schedule to the Federal
Excise Act, 2005. Effective from the 1 st July, 2006.
• Levying 5% excise duty on commission and brokerage of foreign exchange
dealers, exchange companies and money changes.
Financial services have grown at an enormous pace during the last
couple of years. The levy shall be charged on the gross amount of
commission or brokerage charged for the services provided by foreign
exchange dealers including money changers.
Enforced through amendment in the First Schedule to the Federal
Excise Act, 2005. Effective from the 1 st July, 2006.
• Levying 5% excise duty on ‗franchise‘ services.
Franchise service is an internationally recognized service and in Pakistan
also, the franchise business has flourished significantly.
Excise duty @ 5% shall be levied on the gross amount paid by the
franchisee to franchiser for having the right to sell products under his
brand name or trademark.
Enforced through amendment in the First Schedule to the Federal
Excise Act, 2005. Effective from the 1 st July, 2006.
• Cable TV operators to pay Rs. 25/- per connection per month as excise duty.
The business of cable TV operators has witnessed a substantial growth in
the recent years and almost every household is utilizing the cable TV
service.
Collection shall be made in collaboration with PEMRA, which is the
regulatory authority in case of Cable TV network.
Enforced through amendment in the First Schedule to the Federal
Excise Act, 2005. Effective from the 1 st July, 2006.
• Increasing retail price of cigarettes.
Cigarettes are chargeable to excise duty on the basis of retail price.