Sales Tax Instructions

Sales Tax Instructions, 2009
materials by the project company shall,
throughout the operational life of the
refinery, be totally exempt from all duties,
taxes, surcharges and levies.
7.5 The project company shall be
exempt from all taxes under the Income
Tax Ordinance, 2001 and from any other
tax, levy, surcharge, duty or import for the
first twenty (20) years of the operational
life of the refinery.
7.8 Supply of locally manufactur-ed
building and construction material and
equipment for setting up of the refinery
shall be exempt from leviable sales tax
and excise duty.
tax.
Export of the company will be treated as
zero-rated under section 4(a) of the Sales
Tax Act, 1990.
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
tax.
Supply of locally manufactured
prefabricated building part of refinery
plant shall be zero-rated from sales tax
vide SRO 530(I)/2005 dated 06.06.2005.
Supply of iron and steel products shall be
chargeable to sales tax and excise duty
shall be leviable on cement.
[Issued by the CBR, Islamabad, under the signature of Mr. Asif Abbas, Second Secretary
(ST-Budget), addressed to Mr. Muhammad Shafique, Second Secretary (Coord), CBR, Islamabad
and copy to Mr. G.A. Sabri, Director General (Oil), Ministry of Petroleum and Natural
Resources, Islamabad.]
********
C. No. 3(10)ST-L&P/2007 DATED 14 TH NOVEMBER, 2007
SUBJECT: ENFORCEMENT OF SALES TAX (WITHHOLDING) RULES,
2007 (SRO 660(I)/2007 DATED 30.06.2007)
I am directed to refer to the subject noted above and to say that it was noted with
great concern during the Collectors‘ Conference held on 1 st November, 2007, that the
Collectorates failed to show any interest in implementation of Sales Tax (Withholding)
Rules, 2007, notified vide SRO 660(I)/2007 dated 30.06.2007. As a result the collections
on this account have been very dismal. In order to streamline and monitor the collection
under the subject rules, it has been decided to constitute a Committee headed by
Collector, Sales Tax & Federal Excise, Lahore. Each Collectorate/ RTO shall nominate a
contact person/ member, not below the rank of a Deputy Collector/ Assistant Collector
for the said Committee by 16.11.2007 under intimation to the Board. The Committee
shall undertake the following tasks:
(i)
To Coordinate with the all withholding agents with a view to ensure
proper implementation of the said rules;