Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the CBR, Islamabad, under the signature of Mr. Rizwan Salabat Second
Secretary Tariff (FE), addressed to the Collector (LTU), Karachi and Lahore.]
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C. No. 1/22-STB/2002 (main) DATED 24 TH OCTOBER, 2007
SUBJECT:
KHALIFA COASTAL REFINERY PROJECT (KCRP)
I am directed to refer to Second Secretary (Coord), CBR‘s U.O. No.
6(90)Coord/2007 dated 2 nd October, 2007 on the subject cited above and to say that the
requisite reply is as under:
Sections
7.2 Supplies from the project
company to importers in the tariff area of
Pakistan for sale in the domestic market
will be treated as export sales, payable in
foreign currency, and consequently, the
project company will have no liabilities
for sales tax, custom duty, withholding
tax or any other tax, levy, surcharge duty
or import.
7.3 Foreign contractors, their
personnel, agents and sub-contractors
engaged by the project company in
connection with engineering,
procurement,
construction,
commissioning, operation, maintenance
and repair of the refinery shall be entitled
to exemption from withholding tax
subject to the conditions prescribed in
section 44 of the Income Tax Ordinance,
2001 and from any other tax, levy,
surcharge, duty or import.
7.4 Import by the project company,
its contractors or any other person of all
machinery, vehicles, plant and equipment
and other materials and consumables for
the setting up, operation, maintenance and
repair of the refinery and all imports of
crude oil, feedstock, equipment, spares
and other materials for use in the refinery
and export of all POL products and other
Comments/consents required in particular
from concerned
Supplies made by KCRP project to tariff
areas shall be treated as imports (in the
tariff areas) and the liability to pay excise
duty/sales tax shall be on the importers as
per the law and prevailing procedure for
other export processing zone.
Import of plant and machinery into KCRP
(EPZ) will be exempt from sales tax and
Federal excise duty.
Import of crude oil is exempt from sales
tax and Federal excise duty.
Machinery, equipment and other capital
goods meant for initial installation,
balancing, modernization, replacement or
expansion of oil refining (mineral oil,
hydro-cracking and other value added
petroleum products) are exempt from
sales tax vide SRO 575(I)/2006 dated
05.06.2006 (copy enclosed).
Machinery, equipment and other capital
goods meant for initial installation,
balancing, modernization, replacement or
expansion of oil refining (mineral oil,
hydro-cracking and other value added
petroleum products) are exempt from
sales tax vide SRO 575(I)/2006 dated
05.06.2006 (copy enclosed).
Import of crude oil is exempt from sales