Sales Tax Instructions

Sales Tax Instructions, 2009
(vi)
Federal Excise Duty on telecommunication services has been proposed
for reduction from 21% to 19%.
B. SALES TAX & FEDERAL EXCISE (REVENUE MEASURES)
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
Exemption on import of ware potato and onion has been withdrawn
through amendment in Sixth Schedule to the Sales Tax Act, 1990.
Federal Excise Duty rates on cigarettes have been increased for different
slabs through amendments in Table I of First Schedule to the Federal
Excise Act, 2005.
Levy of Federal Excise Duty @ 16% in VAT mode has been proposed
on advertisement in newspapers, periodicals, hoarding boards, pole signs,
sign boards and shop boards through amendment in Table II of First
Schedule to the Federal Excise Act, 2005. It has also been proposed to
shift the responsibility to pay tax liability on recipient of service vide
notification to be issued shortly.
Federal Excise Duty has been proposed on short message service (SMS)
@ 20 paisa per SMS message by amendment in Table II of First
Schedule to the Federal Excise Act, 2005.
Federal Excise Duty @ 16% in VAT mode on insurance services has
been proposed in place of current rate of 10% through amendment in
Table II of First Schedule to the Federal Excise Act, 2005.
Non fund services provided by Banking Companies and Non-Banking
Financial Companies are currently chargeable to FED at 10%. It has been
proposed to replace this levy by FED @ 16% in VAT mode for all
services provided by banking companies and non-banking financial
companies excluding services relating to Hajj and Umrah, cheque book,
insurance, Musharika and Modaraba financing and utility bill collection.
Federal Excise Duty on services provided by the port and terminal
operators including wharfage in respect of imports is being levied @
16% in VAT mode through proposed amendment in Table II of First
Schedule to the Federal Excise Act, 2005.
Federal Excise Duty on services provided by stock brokers has been
proposed to be levied @16% in VAT mode through amendment in Table
II of First Schedule to the Federal Excise Act, 2005.
C. SALES TAX & FEDERAL EXCISE (STREAMLINING MEASURES)