Sales Tax Instructions

Sales Tax Instructions, 2009
consignment is free from hazardous
substances as defined under Basel
Convention; and
(iii) It shall not be used in
production of bags for packing of
foodstuff.‖
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C. NO.4/2-STB/2006 DATED 9 TH JUNE, 2007
SUBJECT:
SALES TAX AND FEDERAL EXCISE BUDGET INSTRUCTIONS
2007-08
The budgetary measures relating to Sales Tax & Federal Excise appear in clause
30 & 36 of the Finance Bill, 2007 and in Sales Tax & Federal Excise Notifications {SRO
460(I)/2007 to 480(I)/2007 and SRO 509(I)/2007, all dated 9 th June, 2007}. The
amendments in the Sixth Schedule to the Sales Tax Act, 1990 shall take effect from 10 th
June, 2007 while the amendments in Table-1 of the First Schedule of the Federal Excise
Act, 2005 relating to excisable goods shall also take effect from 10 th June, 2007. All other
amendments in the Sales Tax Act, 1990 and Federal Excise Act, 2005 shall be effective
on 1 st July, 2007. The Collectors and other officers of field formations are required to
carefully go through all the legislative amendments and notifications. The salient features
of these measures are briefly stated below:-
I. SALES TAX (RELIEF, REVENUE AND STREAMLINING MEASURES)
Relief Measures
(i) Sales tax on the following items has been zero rated with immediate
effect:-
(1) Bicycles
(2) Sewing machines
(3) Writing ink
(4) Exercise books
(5) Uncooked poultry meat
(6) Trailers & semi-trailers
(ii)
Sales tax on the following items / sectors has been exempted:-
(1) Cotton seed oil
(2) Glass bangles industry
(3) Surgical tapes and ultrasound gel