[Last amended vide Finance Act, 2025-26 dated 29th June, 2025]

***
The
SALES TAX ACT, 1990
1
[Act No. III of 1951 as Amended by Act VII of 1990]
An Act to consolidate and amend the law relating to the levy of a tax
on the sale 2[importation, exportation. production.
manufacture or consumption] of goods
WHEREAS it is expedient to consolidate and amend the law relating to the levy of a tax on the
sale 3[, importation, exportation, production, manufacture or consumption] of goods;
It is hereby enacted as follows:--
4
[Chapter-I
PRELIMINARY
1. Short title, extent and commencement.-(1) This Act may be called the Sales Tax 5[***] Act,
1990.
(2) It extends to the whole of Pakistan:
6
[(3) It shall come into force on such date as the Federal Government may, by Notification in
the official Gazette, appoint.]
7
[2. Definitions.-In this Act, unless there is anything repugnant in the subject or context,--

1 Statement of Objects and Reasons have been published in Gazette of Pakistan dated the 30th March, 1951
2 Substituted the words “or consumption of goods” vide the Finance Ordinance, 1960
3 Substituted the words “or consumption of goods” vide the Finance Ordinance, 1960
4 Chapters 1 to X were substituted for Chapters I to XVI vide the Finance Act, 1990
5 Words and bracket “(Amendment)” omitted vide the Finance Act, 1991
6 Came into force vide SRO. 1100(1)/90 effective from 1st November, 1990
7 Section 2 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution Section 2 was as under:-
“2 Definitions: - In this Act: unless there is anything repugnant in the subject or context—
(1) “Appellate Tribunal” means the Customs, Excise and Sales Tax Appellate Tribunal constituted
under Section 194 of the Customs Act, 1969 (1V of 1969);
(2) “appropriate officer” means an officer of Sales Tax authorized the Board by Notification to the
official Gazelle to perform certain functions under the Act;
2-i
[(2A) “associated persons” means any two or more persons interconnected with each other in the
following way, namely-
(i) if the persons, being companies or undertakings, are under common management or
control or one. is the subsidiary of the other;
(ii) if a person who is the owner or partner or director of a company or undertaking, or who,
directly or. indirectly, holds or controls twenty per cent shares in such company or
undertaking, is also the owner, partner or director of another company or undertaking,
or, directly or indirectly, holds or controls twenty per cent shares in that company or
undertaking;]
[2-i Clause (2A) was inserted vide the Finance Act, 1991]
(3) “Board” means the Central Board of Revenue constituted under the Central Board of Revenue Act,
1924 (IV of 1924);
(4) “Collector” means the Collector of Sales Tax appointed under Section 30;
(5) “document” includes any electronic data, computer programmes, computer tapes, computer disks
or any other medium for the storage of such data;
(6) “due date” in relation to the furnishing of a return means the 20th day of the month following the
end of the tax period, or such other date as the Federal Government may, by a Notification in the
official Gazette, specify;
2-ii
[(6A) “establishment” means an undertaking firm or company, whether incorporated or not, an
association of persons or an individual;]

[1]
[2-ii Clause (6A) was inserted vide the Finance Act, 1991]
(7) “exempt supply” means a supply which is exempt from tax under Section 13;
(8) “goods” means every kind of movable property other than actionable claims, money, stocks, shares
and securities;
(9) “input fax”, in relation to a registered person, mean-
(a) the tax levied under this Act on the supply of goods received by that person;
(b) the tax levied under this Act on imported goods entered for home consumption under
Section 79 or Section 104 of the Customs Act, 1969 (IV of 1969), by that person; 2-iii[***]
(c) in case of purchase from a non-registered person of second-hand goods or such other
goods as the Federal Government may by Notification in the official Gazette specify, an
amount equal to the tax fraction of the value of that supply; 2-iv[and]
2-v
[(d) in case of purchase of goods from a wholesaler who is not liable to pay sales tax in
respect of supplies of goods made to the registered person, the amount of tax levied under
this Act at the lime when the said wholesaler received supplies of the said goods;]
[2-iii The word “and” was omitted vide the Finance Act, 1994]
[2-iv Added vide the Finance Act, 1994]
[2-v Added vide the Finance Act, 1994]
(10) “local Sales Tax Office” means the office if Superintendent Sales Tax or such other office as the
Board may be Notification in the official Gazette specify:
(11) “manufacture” or “produce” includes-
(a) any process in which an article singly or in combination with other articles, materials,
components, is either converted into another distinct article or product or is. so changed,
transformed or reshaped that it becomes capable of being put to use differently or
distinctly and includes any process incidental or ancillary to the completion of a-
manufactured product;
(b) process of printing, publishing, lithography and engraving; and
(c) process and operations of assembling, mixing, cutting, diluting, bottling, packaging,
repacking or preparation of goods in any other manner;
(12) “manufacturer” or “producer” means a person who engages, whether exclusively or not, in the
production or manufacture of goods whether or not the raw material of which the goods are
produced or manufactured are owned by him; and shall include-
(a) a person who by any process or operation assembles mixes, cuts, dilutes, bottles,
packages, repackages or prepares goods by any other manner;
(b) an assignee or trustee in bankruptcy, liquidator, executor, or curator, or any
manufacturer, or producer and any person who disposes of his assets in any fiduciary
capacity; and
(c) any-person, firm or company which owns; holds, claims or uses any patent, proprietary,
or other right to goods being manufactured, whether in his or its name, or on his or its
behalf, as the case may be, whether or not such person, firm or company sells,
distributes, consigns, or otherwise disposes of the goods;
(13) “Officer of Sales Tax” means an officer appointed under Section 30;
(14) “open market price” means the consideration in money which that supply or a similar supply
would generally fetch in an open market;
(15) “output tax” in relation to any registered person means the tax charged under this Act in respect
of a supply of goods made by that person;
(16) “person” includes a company, an association, a body of individuals whether incorporated or not a
public or local authority a Provincial Government or the Federal Government;
(17) “prescribe” means prescribed by rules made under this Act;
(18) “registration number” means the number allocated to the registered person for the purpose of this
Act;
(19) “registered person” means a person who is registered or is liable to be registered under this Act;
2-vi
[(19A) “retail price” means the price fixed by the manufacturer, inclusive of all charges and taxes (other
than sales tax and octroi) at which any particular brand or variety of such article should be sold to
the general body of consumers or if more than one such price is so fixed for the same brand or
variety, the highest of such price 2-vii[;]]
2-viii
[Provided that the retail price and the amount of sales tax shall be legibly prominently printed
or embossed on each article packet container package cover or table as the case may be;]
[2-vi Inserted vide the Finance Act, 1993]
[2-vii Full stop substituted vide the Finance Act, 1995]
[2-viii Inserted vide the Finance Act, 1995]
(20) return means any return required to be furnished under chapter–V of this Act;

[2]
 (21) “second hand goods” means goods which have been used and are not new:
2-ix
[(21A) “similar supply” in relation to the open market price of goods, means any other supply of goods
which closely or substantially resemble the characteristics, quantity, components and materials of
the aforementioned goods.]
2-x
[(21B) “Special Judge” means the Special Judge appointed under section 185 of the Customs Act, 1969
(1V of 1969);]
[2-ix Inserted vide the Finance Act, 1991]
[2-x Inserted vide the Finance Act, 1995]
(22) “Special Judge” means the Special Judge appointed under section 185 of the Customs Act, 1969
(IV of 1969); supply” means sale, transfer, lease or other disposition of goods in the course or
furtherance of business carried out for consideration and includes-
(a) putting to private business or non-business use of goods acquired, produced or
manufactured in the course of business;
(b) auction or disposal of goods to satisfy a debt owed by a person;
(c) possession of taxable goods held immediately before a person ceases to be a registered
person;
(d) removal of goods from the manufacturing premises to the sale point or place of storage
owned or operated by the manufacturer or his agent; and
(e) such other transaction as the Federal Government may, vide a Notification in the official
Gazette, specify;
(23) “tax” means the sales tax, and includes additional tax or any other sum payable under any of the
provisions of this Act or the rules made there under:
(24) “taxable activity” means any activity which is carried on by any person whether or not for a
pecuniary profit and involves in whole or in part. the supply of goods to any other person for a
consideration and includes any activity carried on in the form of a business, trade or manufacture:
(25) “tax fraction” means the amount worked out in accordance with the following formula-
a
----------------
100+a
('a’ is the rate of tax specified in Section 3);
(26) “taxable goods” means all goods other than those which have been exempted under Section 13;
(27) “tax invoice” means a document required to be issued under Section 23;
(28) “taxable supply” means a supply of taxable goods made in Pakistan other than a supply of goods
which is exempt under Section 3. and includes a supply of goods chargeable of tax at the rate of
zero per cent under Section 4:
(29) “tax period” means a period of one month or such other period as the Federal Government may.
by Notification in the official Gazette, specify;
(30) “time of supply” 2-xi[(1)] A supply made in Pakistan shall be deemed to take place at the earlier of
the time of delivery of goods or the time when any payments is received by the supplier in respect of
that supply.
Provided that—
(a) where any goods are supplied by a registered person to an associated person and the
goods are not to be removed, the time of supply shall he the time at which these goods
,are made available to the recipient.
(b) where the goods are supplied under hire purchase agreement the time of supply shall be
the time at which the agreement is entered into and
(c) where the goods are removed from the manufacturing premises to the sale point or place
of storage owned or operated by the manufacturer or his agent, the time of supply shall
he the time of removal of goods from the manufacturing premises;
[2-xi Inserted vide the Finance Act, 1995]
(31) “value of supply” (a) In respect of a taxable supply means the consideration in money including
the excise duty.vif any. which the supplier receives from the recipient for that supply but excluding
the amount of tax:
Provided that--
(i) in case the consideration for a supply is in kind or is partly in kind and partly In money,
the value of the supply shall mean the open market price of the supply excluding the
amount of tax; and
(ii) in case the supplier and recipient are associated persons and the supply is made for no
consideration or for a consideration which is lower than the open market price, the value
of supply shall mean the open market price of the supply excluding the amount of the tax;

[3]
 8
[(1) “abettor” means a person who intentionally abets or connives in tax fraud as defined in
clause (37) of section 2 or in the commission of any offence warranting prosecution under this Act, and
includes a person who,–
(a) prepares, or causes to be prepared with authorization of the registered person, invoices
for false claim of input tax adjustment; or
(b) allows use of bank account held or operated by him for abetting tax fraud or other offence
warranting prosecution under this Act or unauthorizedly or illegally maintains or operates
business bank account in other registered person‘s name.]
9 10
[ [(1A)] “active taxpayer” means a registered person who does not fall in any of the following
categories, namely:-
(a) who is blacklisted or whose registration is suspended 11[***] in terms of section 21;
(b) who fails to file the return under section 26 by the due date for two consecutive tax
periods:
(c) who fails to file an income Tax return under section 114 or statement under section 115,
of the income Tax Ordinance, 2001 (XLIX of 2001), by the due date: and
(d) who fails to file 12[quarterly] or an annual withholding tax statement under section 165 of
the Income Tax Ordinance, 2001:
13
[(1B)] “Appellate Tribunal” means the Appellate Tribunal Inland Revenue established under
section 130 of the Income Tax Ordinance, 2001 (XLIX of 2001).]

(b) in case of trade discounts, the value of supply shall mean the discounted price
excluding the amount of tax; provided the tax invoice shows the discounted
price and the related tax and the discount allowed is in conformity with the
normal business practices;
(c) in case where for any special nature of a transaction it is difficult to ascertain
the value of a supply, the value of supply means the open market price; and
(d) in case of imported goods, the value of supply shall mean the value determined
under Section 25 or 25B of the Customs Act, 1969 (IV of 1969), including the
amount of customs-duties and central excise duty levied thereon;
Provided that, where the Central Board of Revenue deems it necessary, it may,
by notification in the official Gazette, fix the value of any taxable supplies or
class of supplies and for that purpose fix different values tor different classes or
description of same type of supplies
Provided further that where the value at which the supply is made is higher
than the value fixed by the Central Board of Revenue. the value of goods shall
be the value at which the supply is made;
(31A) “wholesaler” means any person who carries on, whether regularly or otherwise, the business of
buying and selling goods by wholesale or of supplying or distributing goods. directly or indirectly,
by wholesale for cash or deferred payment or for commission or other valuable consideration;
(32) “zero-rated supply” means a taxable supply which is charged to tax at the rate of zero per cent
under Section 4.”
8 Inserted vide Finance Act, 2025 dated 29th June, 2005
9 Clause (1) was substituted vide the Finance Act, 2015. At the time of substitution Clause (1) was as under:--
2-xii
[(1) - “Appellate Tribunal” means the Appellate Tribunal, Inland Revenue established under section 130 of the,
Income Tax Ordinance, 2001(XLIX of 2001)]
[2-xii Clause (1) was substituted vide the Finance Act, 2010]. At the time of substitution Clause (1) was as under:-
“(1) “Appellate Tribunal” means the Customs, Excise and Sales Tax Appellate ,Tribunal constituted
under section 194 of the Customs Act;”
10 Renumbered vide Finance Act, 2025 dated 29th June, 2005
11 Omitted the words “or is blocked” vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
12 Substituted the words “two consecutive monthly” vide the Finance Act, 2020 (XIX of 2020) assented on 30th June,
2020
13 Renumbered vide Finance Act, 2025 dated 29th June, 2005

[4]
 (2), “appropriate officer” means 14[officer of Inland Revenue] authorised by the Board by
notification in the official Gazette to perform certain functions under this Act;
15
[(2A) “arrears”, in relation to a person means, on any day, the sales tax due and payable by the
person under this Act before that day but which has not yet been paid;]
16
[(3) “associates or associated persons” shall have the same meaning as defined in section 85
of the Income Tax Ordinance, 2001 (XLIX of 2001)]
17
[(3A) “association of persons” includes a firm a Hindu undivided family, any artificial
juridical person and anybody of persons formed under a foreign law. but does not include a company.]

14 Substituted the words “officer of Sales Tax” vide the Finance Act, 20I0 (XVI of 20 I 0), assented on 30th June, 2010
effective from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0
(III of 2010) promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009)
promulgated on 28th October, 2009
15 Clause (2A) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of
substitution Clause (2A) was as under:--
2-xiii
[(2A) “arrears” includes the un-paid amounts of tax, 2-xiv[default surcharge], 2-xv[***] extra amount of tax, fines,
penalties, lees or any other sums, however described, as have been assessed, adjudged or demanded under
this Act.]
[2-xiii Clause (2A) was inserted vide the Tax law (Amendments) Ordinance, 1999 (XXII of 1999), promulgated on
17th December, 1999]
[2-xiv Substituted the words were “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005]
[2-xv The words and comma were “further tax,” were omitted vide the Finance Act, 2004 (II of 2004), assented on
30th June, 2004]
16 Clause (3) was substituted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of substitution clause
(3) was as under:-
“(3) “associates (associated persons)” means,--
(i) subject to sub-clause (ii), where two persons associate and 'the relationship between the two is such
that one may reasonably be expected to act in accordance with the intentions of the other, or both
persons may reasonably be expected to act in accordance with the intentions of a third person;
(ii) two persons shall not be associates solely by reason of the fact that one person is an employee of
the other or both persons are employees of a third person;
(iii) without limiting the generality of sub-clause (i) and subject to sub-clause (iv), the following shall
he treated as associates namely:--
(a) an individual and a relative of the individual;
(b) members of an association of persons:
(c) a member of an association of persons and the association, where the member, either alone or
together with an associate or associates under another application of this section, controls fifty per
cent or more of the rights to income or capital of the association;
(d) a trust and any person who benefits or may benefit under the trust;
(e) a shareholder in a company and the company, where the shareholder, either alone or together with
an associate or associates under another application of this section, controls either directly or
through one or more interposed persons--
(i) fifty per cent or more of the voting power in the company;
(ii) fifty per cent or more of the rights to-dividends; or
(iii) fifty per cent or more of the rights to capital; and
(f) two companies, where a person, either alone or together with an associate associates under another
application of this section, controls either directly or through one or more interposed persons.
(i) fifty per cent or more of the voting power in both companies;
(ii) fifty per cent or more of the rights to dividends in both companies; or
(iii) fifty per cent or more of the rights to capital in both companies.
(iv) Two persons shall not be associates under sub-clause (a) or (b) of paragraph (iii) where the
Commissioner is satisfied that neither person may reasonably be expected to act in accordance with
the intentions of the other.
(v) In this clause, “relative” in relation to an individual, means--
(a) an ancestor, a descendant of any of the grandparents, or an adopted child, of the individual, or of a
spouse of the individual; or
(b) a spouse of the individual or of any person' specified in sub-clause (a).”

[5]
 18
[(3AA) “ball king company” means a banking company as defined in the Banking Companies
Ordinance. 1962 (LVII of 1962) and includes anybody corporate which transacts the business of banking
in Pakistan;]
19
[(4) “Board” shall have the same meaning as defined under clause (8) of section 2 of the
Income Tax Ordinance, 2001 (XLIX of 2001);]
20
[(4A) “Cargo Tracking System” means a digital system notified by the Board for electronic
monitoring and tracking of goods transported within or across the territory of Pakistan, for the purpose of
tax enforcement, compliance and prevention of tax evasion;]
21
[ 22[(4AA)] “Chief Commissioner” means a person appointed as the Chief Commissioner
Inland Revenue under section 30;]
23
[ 24[(4AAA)] “Commissioner (Appeals)” means Commissioner of Inland Revenue (Appeals)
appointed under section 30;]
25
[(5) “Commissioner” means the Commissioner Inland Revenue appointed under section 30;]
26
[(5A) “common taxpayer identification number” means the registration number or any other
number allocated to a registered person;]
27
[(5AA) “company” means--
(a) a company as, defined in the Companies Ordinance, 1984 (XLVII of 1984);
(b) a body, corporate formed by or under any law in force in Pakistan;
(c) a modaraba;
(d) a body incorporated by or under the law of a country outside Pakistan relating to
incorporation of companies;
(e) a trust, a co-operative society or a finance society or any other society established or
constituted by or under any law for the time being in force; or

17 Clause (3A) was inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
18 Clause (3A) was renumbered as clause (3AA) vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008.
Earlier clause (3A) was inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
19 Clause (3) was substituted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of substitution clause
(3) was as under:-
“[(4) “Board” means the Federal Board of Revenue established under section 3 of the- Federal Board of Revenue
Act, 2007;]”
20 Inserted vide Finance Act, 2025 dated 29th June, 2005
21 Clause (4A) was inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010), w. e f 5th June, 2010.
Earlier Clause (4A) was inserted vide the Finance (Amendment) Ordinance, 2010 (III of 2010) promulgated on 6th
February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th October, 2009
22 Renumbered vide Finance Act, 2025 dated 29th June, 2005
23 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
24 Renumbered vide Finance Act, 2025 dated 29th June, 2005
25 Clause (5) was substituted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010), w. e f 5th June,
2010. Earlier Clause (5) was substituted vide the Finance (Amendment) Ordinance, 20I0 (III of 2010) promulgated on
6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th October, 2009.
At the time of substitution clause (5) was as under:--
“(5) “Collector” means the Collector of Sales Tax appointed under section 30:”
26 Clause (5A) was inserted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006. Earlier a different
Clause (5A) was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of omission
Clause (5A) was as under, which was inserted vide the Tax Law (Amendments) Ordinance, 1999 (XXII of 1999)
promulgated on 17th December.1999]:-
“(5A) “common taxpayer identifier” means the identification number allocated under section 20 of the Finance
Act, 1999 (IV of 1999);”
27 Clause (5AA) was inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008

[6]
 (f) a foreign association, whether incorporated or not which the Board has by general or
special order declared to be a company for the purposes of the Income lax Ordinance
2001 (XLIX of 2001);]
28
[(5AAA) “computerized system” means an comprehensive information technology system to
he used By the Board or any other office as may be notified by the Board, for carrying out the purposes of
this Act;]
29
[(5AB) “cottage industry” means a manufacturing concern, which fulfils each of following
conditions, namely:-
(a) does not have an industrial gas or electricity connection;
(b) is located in a residential area;
(c) does not have a total labour force of more than ten workers; and
(d) annual turnover from all supplies does not exceed 30[ 31[eight] million Rupees;]
32
[(5ABA) “courier” means any entity engaged in the delivery of goods and collection of cash on
behalf of a seller including logistic and ride-hailing services;]
33
[(5AC) “CREST” means the computerized program for analyzing and cross-matching of sales
tax returns, also referred to as Computerized Risk-based Evaluation of Sales Tax;]
(6) “Customs Act” means the Customs Act, 1969 (v of 1969), and where appropriate all
rules and notifications made under that Act;
34
[(6A) “defaulter” means a person and, in the case of company or firm; every director, or
partner of the company, or as the case may be, of the firm, of which he is a director or a partner or a
proprietor and includes guarantors or successors, who fail to pay the arrears;]
35
[(6B) “default surcharge” means the default surcharge levied under section 34;]
(7) “distributor” means a person appointed by a manufacturer, importer or any other, person
for a specified area to purchase goods from him for further supply and includes a person who in addition
to being a distributor is also engaged in supply of goods as a wholesaler or a retailer:
(8) “document” includes any electronic data, computer programmes; computer tapes
computer disks, micro-films or any other medium for the storage of such data.

28 Clause (5AA) renumbered as (5AAA) vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008). Earlier
clause (5AA) was inserted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006
29 Clause (5AB) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution clause (5AB) was as under:-
“
(5AB) “cottage industry” means a manufacturer whose annual turnover from taxable supplies made in any tax period
during the last twelve months ending any tax period does not exceed ten million rupees or whose annual utility
(electricity, gas and telephone) bills during the last twelve months ending any tax period do not exceed eight hundred
thousand rupees.”
30 Substituted the word “three” vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
31 Substituted the words “ten” vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
32 Inserted vide Finance Act, 2025 dated 29th June, 2005
33 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
34 Clause (6A) was inserted vide the Tax Law (Amendments) Ordinance, 1999 (XXII of 1999) promulgated on 17th
December, 1999
35 Clause (6B) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of
substitution Clause (6B) was as under, which was inserted vide the Finance Act, 2005 (VII of 2005), assented on 29th
June, 2005:--
6B) “Default Surcharge” means the surcharge payable by a defaulter at the rate specified in section 34 of this
Act.]

[7]
 (9) “due date” in relation to the furnishing of a return 36[under section 26] 37[, 38[***]
39
[***]] means the 40[15th] day of the month following the end of the tax period, or such other date as the
41
[Board] may, by notification in the official Gazette, specify; 42[and different dates may be specified for
furnishing of different parts or annexures of the return;]
43
[(9B) “e-bilty” means a digital transport document generated through the Cargo Tracking
System as prescribed by the Board, to accompany goods during their movement.
(9C) “e-commerce” means sale or purchase of goods conducted over computer networks by
methods specifically designed for the purpose of receiving or placing of orders either through websites,
mobile applications or online marketplace having digital ordering features by using mobile phones,
automated computer-to-computer ordering system or any similar device;]
44
[***]
(10) “establishment” means an undertaking, firm or company, whether incorporated or not,
an association of persons or an individual;
(11) “exempt supply” means a supply which is exempt from tax under section 13;
45
[(11A) "FBR Refund Settlement Company 46[***] Limited" means the company with this name
as incorporated under the 47[Companies Act, 2017 (XIX of 2017)] for the purpose of settlement of sales
tax and income tax refund claims including payment by way of issuing refund bonds under section 67A;]
48
[(11B) “firm” means the relation between persons who have agreed to share the profits of a
business carried on by all or any of them acting for all;]
(12) “goods” include 49[***] every kind of movable property other than actionable claims,
money, stocks, shares and securities;
50
[(12A) "greenfield industry", in relation to the entry at serial number 150 of the Table-l of the
Sixth Schedule, means-

36 The words and figure was inserted vide Finance Act, 1998 (III of 1998)
37 The comma, words, brackets and figures were inserted vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000)
promulgated on 24th May, 2000
38 The words, brackets, figures and letter “sub-section (6) of section 26A” was omitted vide the Finance Act, 2004 (II of
2004), assented on 30th June, 2004
39 The expression “and section 26AA” was omitted vide the Finance Act, 2016.
40 Substituted for the figure “20th” vide Finance Act, 1998 (III of 1998)
41 Substituted for the words, “Federal Government” vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
42 Inserted vide the Finance Act, 2016
43 Clause 9(a) was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Clause 9(a) was
as under:-
“(9A) “e-intermediary” means a person appointed as e-intermediary under section 52A for filing of electronic
returns and such other documents as may be prescribed by the Board from time to time, on behalf of a person registered
under section 14;”
44 Clause (9aa) was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of omission
Clause (9aa) was as under, which was added vide the Sales Tax (Amendment) Ordinance, 200I (VII of 200I), assented
on 7th February, 2001:--
“(9aa) “enrollment number” means the number allocated to the enrolled person for the purposes of this Act.)
45 Inserted vide Finance Supplementary (Second Amendment) Act, 2019 (III of 2019) assented on 9th March, 2019
46 Omitted the word “(Private)” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
47 Substituted the words “Companies Ordinance, 1984 (XLVII of 1984),” vide the Finance Act, 2019 (V of 2019),
assented on 30th June, 2019
48 Clause (11 A) was re-numbered vide Finance Supplementary (Second Amendment) Act, 2019 (III of 2019) assented on
9th March, 2019
49 Omitted the words “production, transmission and distribution of electricity,” vide the Finance Act, 2023 (XXXIV of
2023) dated 26th June, 2023
50 Inserted vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th December, 2019

[8]
 (a) a new industrial undertaking which is-
(i) setup on land which has not previously been utili.zed for any commercial,
industrial or manufacturing activity and is free from constraints imposed by any
prior work;
(ii) built without demolishing, revamping, renovating, upgrading, remodeling or
modifying any existing structure, facility or plant;
(iii) not formed by the splitting up or reconstitution of an undertaking already in
existence or by transfer of machinery, plant or building from an undertaking
established in Pakistan prior to commencement of the new business and is not
part of an expansion project;
(iv) using any process or technology that has not earlier been used in Pakistan and is
so approved by the Engineering Development Board; and
(b) is approved by the Commissioner on an application made in the prescribed form and
manner, accompanied by the prescribed documents and, such other documents as may be
required by the Commissioner:
Provided that this definition shall be applicable from the 1st July, 2019 and
onwards.]
(13) “importer” means any person who 51[***] imports any goods into Pakistan;
52
[(14) “input tax”, in relation to a registered person, means -

51 The word “lawfully” was omitted vide the license Act, 2008 (I of 2008), assented on 26th June, 2008
52 Clause (14) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of
substitution Clause (14) was as under:--
“(14) “input tax” in relation to a registered person. means the tax--
(a) levied' under this Act on the supply of goods received by that person;
(b) levied under this Act on the goods imported, entered and cleared under section 79 or section 104 of
the Customs Act, by that person;
2-xvii
[(c) levied under the Sales Tax Act, 1990 of Pakistan as adapted in the State of Azad Jammu. and
Kashmir, on the supply of goods received by that person; and
[2-xvii sub-clauses (c) was substituted for sub-clause (c) vide the Finance Ordinance, 2002 (XXVII of 2002)
promulgated on 15th June, 2002). This amendment shall be deemed to have been so substituted on the 18th
June, 200I.] At the time of substitution, sub-clause (c) was as under:-
“(c) levied under the Sales Tax Act, 1990 of Pakistan as adapted in the State of Azad Jammu and
Kashmir, on the supply of goods received by that person 2-xviii[and shall include duties of excise
chargeable under section 3 of the Central Excises Act, 1944 (I of 1944), on such excisable services
as are notified by the Federal Government under the third proviso to sub-section (I) thereof and on
which such duties are charged, levied and paid as if it were a tax payable under section 3 of this
Act.”
[2-xviii The words, figures, commas, and brackets were added vide the Finance Ordinance, 200I (XXV of 200I),
assented on 18th June, 2001]. Earlier sub-clause (c) was added vide Finance Act, 1998 (III of 1998). Before
that a different sub-clause (c) was omitted vide the Finance Act, 1997 (XXII of 1997). At the time of omission
sub-clause (c) was as under:--
“(c) paid on the goods by an importer or manufacturer, in case of taxed supply;”
2-xix
[(d) chargeable as duties of excise under section 3 of the Federal Excise Act 2005. on such excisable
goods as are mentioned III the Second Schedule thereto or such excisable services as the Federal
Government may from time to time notify under section 7 thereof and on which such duties are
charged, levied and paid as if it were a tax payable under section “of this Act.]
[2-xix Sub-clause (d) was substituted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006.] At the
time of substitution sub-clause (d) was as under:--
“(d) chargeable as duties of excise under section 3 of the Central Excises Act, 1944 (I of 1944), on such
excisable 2-xx[goods or] services as are notified by the Federal Government under the third proviso
to sub-section (I) thereof and on which such duties are charged, levied and paid as if it were a tax
payable under section 3 of this Act;”

[9]
 (a) tax levied under this Act on supply of goods to the person;
(b) tax levied under this Act on the import of goods by the person;
(c) in relation to goods or services acquired by the person, tax levied under the Federal
Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production
of the goods, or the rendering or providing of the services; 53[***]
54
[(d) provincial sales tax levied on services rendered or provided to the person 55[excluding
those services as specified by the Board through notification in the official Gazette
subject to such conditions, restrictions and limitations as mentioned therein]: and]
(e) levied under the Sales Tax Act, 1990 as adapted in the State of Azad Jammu and
Kashmir, on the supply of goods received by the person;]
56
[(14A) The expression “KIBOR” means Karachi Inter-Bank Offered Rate prevalent on
the first day of each quarter of the financial year;]
57
[(15) “local Inland Revenue office” means the office of Superintendent of Inland Revenue or
such other office as the Board may, by notification in the official Gazette, specify;]
58
[(15A) “licensed integrator” means any person licensed by the Board to provide electronic
invoicing system for integration of registered persons in the prescribed manner;]
(16) “manufacture” or “produce” includes-
(a) any process in which an article singly or in . combination with other articles, materials,
components, is either converted into another distinct article or product or is so changed,
transformed or reshaped that it becomes capable of being put to use differently or
distinctly and includes any process incidental or ancillary to the completion of a
manufactured product;
(b) process of printing, publishing, lithography and engraving; and
(c) process and operations of assembling, mixing, cutting, diluting, bottling, packaging,
repacking or preparation of goods in any other manner.
(17) “manufacturer” or “producer” means a person who engages, whether exclusively or
not, in the production or manufacture of goods whether or not the raw material of which the goods are
produced or manufactured are owned by him; and shall include--

[2-xx The words were inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
2-xxi
[(e) levied under the Punjab Sales Tax Ordinance, 2000 (Pb. Ord II of 2000), North West Frontier
Province Sales Tax Ordinance, 2000 (Ill of 2000), Sindh Sales Tax Ordinance, 2000 (VIII of
2000), Baluchistan Sales Tax Ordinance, 2000 (I of 2000) and Islamabad Capital Territory (Tax on
Services) Ordinance, 2000 (XLII of 2000);
[2-xxi Sub-clause (e) was added vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007]
53 The word “and” was omitted vide the Tax Laws (Amendment) Ordinance 2016 dated 31st August 2016 (V of 2016),
Earlier this word was added vide the Finance Act, 2016 (XXIX OF 2016)
54 Inserted vide the Tax Laws (Amendment) Ordinance 2016 dated 31st August 2016 (V of 2016). Earlier sub-clause
“(d)” was omitted vide the Finance Act, 2016. At the time of omission sub-clause “(d)” was as under:--
(d)' Provincial sales tax levied on services rendered or provided to the person; and
55 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
56 Clause (14A) was inserted vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009
57 Clause (15) was substituted vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010 effective from 5th
June, 2010. Earlier Clause (15) was substituted vide the Finance (Amendment) Ordinance, 20I0 (III of 20I0)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009. At the time of substitution Clause (15) was as under:--
“(15) “local Sales Tax Office” means the office of Superintendent of Sales Tax. or such other office as the Board
may, by notification in the official Gazette, specify;”
58 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

[10]
 (a) a person who by any process or operation assembles, mixes, cuts, dilutes, bottles,
packages, repackages or prepares goods by any other manner;
(b) an assignee or trustee in bankruptcy, liquidator, executor, or curator, or any manufacturer,
or producer and any person who disposes of his assets in any fiduciary capacity; and
(c) any person, firm or company which owns, holds, 'claims or uses any patents, proprietary,
or other right to goods being manufactured, whether in his or its name, or on his or its
behalf, as the case may be, whether or not such person, firm or company sells, distributes,
consigns, or otherwise disposes of good 59[:]
60
[Provided that for the purpose of refund under this Act, only such person shall be
treated as manufacturer-cum-exporter who owns or has his own manufacturing facility to
manufacture or produce the goods exported or to be exported.]
61
[(18) “officer of Inland Revenue” means an officer appointed under section 30;]
62
[(18A) “online marketplace” means online interfaces that facilitate, for a fee, the direct
interaction between multiple buyers and multiple sellers via digital orders for supply of goods, with or
without the platform taking economic ownership of the goods that are being sold;]
(19) “open market price” means the consideration in money which that supply or a similar
supply would generally fetch in an open market;
63
[(20) “output tax”, in relation to a registered person, means--.

59 Substituted for the semi-colon vide the Finance Ordinance, 2000 (XXI of 2000)
60 Proviso was added vide the Finance Ordinance, 2000 (XXI of 2000)
61 Clause (18) was substituted vide the Finance Act, 2010 (XVI of 20I0), assented on 30th June, 20I0), effective from 5th
June, 2010. Earlier Clause (18) was substituted vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October; 2009. At the time of substitution Clause (18) was as under:--
“(18) “officer of Sales Tax” means an officer appointed under section 30;”
62 Clause 18(A) was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Clause 18(A)
was as under:-
“(18A) “online market place” includes an electronic interface such as a market place, e-commerce platform, portal or
similar means which facilitate sale of goods, including third party sale, in any of the following manner, namely:-
(a) by controlling the terms and conditions of the sale;
(b) authorizing the charge to the customers in respect of the payment for the supply; or
(c) ordering or delivering the goods.”
63 Clause (20) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008). At the time of
substitution Clause (20) was as under:--
“
(20) “output tax” in relation to any registered person means,--
(i) the tax charged under this Act. in respect of a supply of goods made by that person;
(ii) duties of excise chargeable under section 3 of the Federal Excise Act, 2005, on such excisable
goods or services as are mentioned in the Second Schedule or services as are specified by the
Federal Government under section 7 thereof and on which such duties are charged, levied and paid
as it were' a tax payable under section 3 of this Act; and
(iii) the tax levied under the Punjab Sales Tax Ordinance, 2000 (Pb. Ord II of 2000), North West
Frontier Province Sales Tax Ordinance, 2000 (N.W.F.P. Ord III of 2000), Sindh Sales Tax
Ordinance, 2000 (Sindh Ord. VIII of 2000), Balochistan Sales Tax Ordinance, 2000 (Bal. Ord. I of
2000) and Islamabad Capital Territory (Tax on Services) Ordinance, 2000 (XLII of 2000);”
Earlier clause (20) was substituted vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007. At the time of
substitution Clause (20) was as under:--
“(20) “output tax” in relation to any registered person means the tax charged under this Act in respect of
a supply of goods made by that person 2-xxii[and shall include duties of excise chargeable under
section 3 of the Central Excises Act, 1944 (I of 1944) on such excisable 2-xxiii[goods or] services as
are notified by the Federal Government under the third proviso to sub-section (I) thereof and on
which such duties are charged, levied and paid as if it were a tax payable under section 3 of this
Act.]”

[11]
 (a) tax levied under this Act on a supply of goods, made by the person;
(b) tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on
the manufacture or production of the goods, or the rendering or providing of the services,
by the person;
64
[(c) sales tax levied on the services rendered or provided by the person under Islamabad
Capital Territory (Tax on Services) Ordinance 2001 (XLII of 2001);]
65
[(20A) “payment intermediary” means a banking company, any financial institution including
a licensed foreign exchange company or payment gateway that facilitate the transfer of funds or payment
instructions between two or more parties to enable, process, route, or settle payments with respect to
goods in a financial transaction, without being the ultimate source or recipient of the payment;]
66
[(21) “person” means,--
(a) an individual;
(b) a company or association on of persons incorporated, formed, organized or established
in Pakistan or elsewhere;
(c) the Federal Government;
(d) a Provincial Government;
(e) a local authority in Pakistan; or
(f) a foreign government, a political subdivision of a foreign government, or public
international organization;]
(22) “prescribed” means prescribed by rules made under this Act;
67
[(22A) “Provincial Sales Tax” means tax levied under provincial laws or laws relating to
Islamabad Capital Territory, which are declared by the Federal Government through notification in the
official Gazette, to be provincial sales tax for the purpose of input tax;]
(23) “registered office” means the office or other place of business specified by the registered
person in the application made by him for registration under this Act or through any subsequent
application to the 68[Commissioner];

[2-xxii The words, figures, commas and brackets were added vide the Finance Ordinance, 200I (XXV of 2001),
assented on 18th June, 2001]
[2-xxiii The words were inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
64 Clause (c) was substituted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020. At the time of
substitution clause (c) was as under:-
“(c) Provincial sales tax levied on services rendered or provided by the person;”
65 Inserted vide Finance Act, 2025 dated 29th June, 2005
66 Clause (21) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of
substitution Clause (21) was as under:--
“(21) “person” includes a company, an association, a body of individuals whether incorporated or not, a public or
local authority, a Provincial Government or the Federal Government;”
67 Substituted for clause (22A) vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013. At the time of
substitution clause (22A) was as under:--
2-xxiv
[(22A) “Provincial sales tax” means tax levied under.-
(a) the Baluchistan Sales Tax Ordinance, 2000 (I of 2000);
(b) Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001);
(c) the Punjab Sales Tax Ordinance, 2000 (Pb. Ord. II of 2000);
(d) the North West Frontier Province Sales Tax Ordinance, 2000 (III of 2000); and
(e) the Sindh Sales Tax Ordinance, 2000 (VIII of 2000);]
[2-xxiv Clause (22A) was inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008]

[12]
 (24) “registration number” means the number allocated to the registered person for the
purpose of this Act;
69
[(25) “registered person” means a person who is registered or is liable to be registered under
this Act:
Provided that a person liable to be registered but not registered under this Act 70[***] shall not be
entitled to any benefit available to a registered person under any of the provisions of this Act or the rules
made there under;]
71
[***]
(27) “retail price”, with reference to the Third Schedule, means the price fixed by the
manufacturer [or importer, in case of imported goods] 73[***] inclusive of all 74[duties,] charges and
72

taxes (other than sales tax 75[***]) at which any particular brand or variety of any article 76[is] sold to the
general body of consumers or, if more than one such price is so fixed for the same brand or variety, the
highest of such price 77[:]
78
[Provided that the Board may through a general order specify zones or areas for the purpose of
determination of highest retail price for any brand or variety of goods [;]
79
[Provided further that the reduction in price on account of chilling charges or any other similar
charges in case of aerated water, beverages, mineral water, or fruit juices shall not be more than five
percent of the price inclusive of sales tax, federal excise duty and all taxes other than income tax on which
such goods are actually sold to the general body of consumers:
Provided also that, where the Board deems it necessary it may, by notification in the official
gazette, fix the retail price of goods specified in the third schedule:
Provided also that, in case of imported goods specified in the Third Schedule, the retail price shall
not be less than one hundred thirty percent of the value determined under section 25 of the Customs Act,
1969 (IV of 1969), including the amount of customs duties and federal excise duty levied thereon;]

68 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010. Earlier the
same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010) promulgated on 6th February,
2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th October. 2009
69 Clause (25) was substituted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002. At the
time of substitution Clause (25) was as under-.
“(25) “registered person” means a person who is registered or is liable to be registered under this Act 2-xxv [and
such person shall remain liable to further tax under sub-section (IA) of section 3 and shall not be entitled to
any benefit available 10 a registered person under any of the provisions of this Act or rules made there
under.“
[2-xxv The words brackets, figures was added vide the Finance Ordinance, 200I (XXV of 200I), assented on 18th
June, 2001]
70 The words, brackets, numbers and letters “shall remain liable to further tax under sub-section (IA) of section 3 and”
were omitted the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
71 Clause (26) was omitted vide the Finance Act, 1997 (XXII of 1997. Clause (26) at the time of omission was as under:-
“(26) “replacement invoice” means a document required to be issued by registered importers, distributors and
wholesalers not charging output tax on taxed supplies made by them;”
72 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
73 The words 2-xxvi[or the importer] were omitted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
[2-xxvi The words inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
74 The word and comma was inserted vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
75 The words “and octroi” were omitted vide Finance Act, 1998 (III of 1998
76 Substituted the word “should be” vide the Finance Act, 2025, dated 29th June, 2025
77 Substituted for the semicolon vide the Finance Act, 2014.
78 Added vide the Finance Act, 2014.
79 Added vide the Finance Act, 2025, dated 29th June, 2025

[13]
 (28) “retailer” means a person 80[, 81[***],] supplying goods to general public for the purpose
82
of consumption [:]
83
[Provided that any person, who combines the business of import and retail or manufacture or
production with retail, shall notify and advertise wholesale prices and retail prices separately, and declare
the address of retail outlets 84[***].]
85
[***]
(29) “return” means any return required to be furnished under Chapter- V of this Act;
86
[(29A) “sales tax” means--
(a) the tax, additional tax, or default surcharge levied under this Act;
87
(b) a fine, penalty or fee imposed or charged under this Act [excluding fee and service
charges imposed and collected under section 76]; and
(c) any other sum payable under the provisions of this Act or the rules made there under;]
88
[(29AA) “sales tax account” means an account representing the double entry recording of sales
tax transactions in the books of account;]
(30) “Schedule” means a Schedule appended to this Act;
(31) “similar supply”, in relation to the open market price of goods, means any other supply
of goods which closely or substantial 89[resembles] the characteristics, quantity, components arid
materials of the aforementioned goods;
90
[(31A) “special audit” means an audit conducted under section 32A;]
(32) “Special Judge” means the Special Judge appointed under section 91[37C of the Act and
till such appointment is made the Special Judge appointed under section] 185 of the Customs Act;
92
[(33) “supply” means a sale or other transfer of the right to dispose of goods as owner,
including such sale or transfer under a hire purchase agreement, and also includes--

80 The commas and the words were inserted vide Finance Act, 1998 (III of 1998)
81 The words “not being a manufacturer or producer or an importer” were omitted vide the Finance Act, 2003 (I of
2003), assented on 16th June, 2003
82 Substituted for the “semicolon” vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
83 Proviso was added vide the Finance Act, 2003 (l of 2003), assented on 16th June, 2003
84 The comma, words and figures “, and his total turnover per annum shall be taken into account for the purposes of
registration under section 14” were omitted vide Finance Act, 2015
85 Clause (28A) was omitted vide the Finance Act, 2008 (l of 2008), assented on 26th June, 2008. At the time of omission
Clause (28A) was as under:--
2-xxvii
[(28A) “retail tax” means tax levied under section 3AA;]
[2-xxvii Clause (28A) was inserted vide the Finance Act, 1997 (XXII of 1997]
86 Clause (29A) was inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
87 Added vide the Finance Act, 2022 dated on 30th June, 2022
88 Clause (29A) renumbered as (29AA) vide the Finance Act, 2008 (I of 2008), assented on 26th June, 1008. Earlier
Clause (29A) was inserted vide the Finance Act, 2006 (III of 1006), assented on 30th June, 2006
89 Substituted the word “resemble” vide the Finance Act, 1008 (I of 1008), assented on 26th June, 1008
90 Clause (31 A) was inserted vide Finance Act, 1998 (III of 1998)
91 For the figure and words were inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010
92 Clause (33) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008). At the time of
substitution Clause (33) was as under:--
“(33) “supply” includes sale. lease 2-xxviii[***] or other disposition of goods 2-xxix[***] carried out for
consideration and also includes—
[2-xxviii The brackets and words “excluding financial or operating lease” were omitted vide the Finance Act, 2006
(III of 1006), assented on 30th June, 2006]. The words“excluding financial lease” were inserted vide the

[14]
 (a) putting to private, business or-non-business use of goods produced or- manufactured in
the course of taxable activity for purposes other than those of making a taxable supply;
(b) auction or disposal of goods to satisfy a debt owed by a person; 93[***]
(c) possession of taxable goods held immediately before a person ceases to be a registered
person 94[; 95[***]
(d) in case of manufacture of goods belonging to another person, the transfer or delivery of
such goods to the owner or to a person nominated by him 96[and]]
97
[***]
Provided that the 98[Board, with the approval of the Federal Minister-in-charge,] may by
notification in the official Gazette, specify such other transactions which shall or shall not constitute
supply;]
99
[(33A) “supply chain” means the series of transactions between buyers and sellers from the
stage of first purchase or import to the stage of final supply;]
100
[(34) “tax”, unless the context requires otherwise, means sales tax;]

Finance Ordinance, 2000 (XXI of 2000) while the words “or operating” were inserted vide the Finance
Ordinance, 2001 (XXV of 2001)
[2-xxix The words “in furtherance of business” were omitted vide the Finance Act, 2003 (I of 2003), assented on 16th
June, 2003]
(a) putting to private. business or non-business use of goods acquired, produced or manufactured in
the course of business;
(b) auction or disposal of goods to satisfy a debt owed by a person: 2-xxx[and ]
[2-xxx The word was added vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]

(c) possession of taxable goods held immediately before a person ceases to be a registered person 2-
xxxi
[:]
[2-xxxi Substituted for “; and” vide the Finance Act 2004, (II of 2004 assented on 30th June, 2004]
2-xxxii
[***]
[2-xxxii Sub-clause (d) was omitted vide the Finance Act 2004, (II of 2004), assented on 30th June, 2004).] At the time
of omission sub-clause (d) was as under:--
“(d) such other transaction as the Federal Government may, by notification in the official Gazette,
specify;”
2-xxxiii
[Provided that the Federal Government, may by notification in the official Gazette. specify
such other transactions which shall or shall not constitute supply]
[2-xxxiii Proviso was added vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
93 The word “and” was omitted vide Finance Act, 2015
94 Semi-Colon and word “and” was substituted for Colon and thereafter new clause was added vide Finance Act, 2015
95 Omitted the word “and” vide the Finance Act, 2022 dated on 30th June, 2022
96 Subsituted vide the Finance Act, 2022 dated on 30th June, 2022
97 Clause (e) was omitted vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023. At the time of omission
clause (e) was as under:-
“(e) production, transmission and distribution of electricity.”
98 Substituted the words “Federal Government,,” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
99 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
100 Clause (34) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of
substitution Clause (34) was as under:--
“(34) “tax” means the sales tax 2-xxxiv[***] 2-xxxv[retail tax 2-xxxvi[***]], and includes 2-xxxvii[default surcharge] or
any other sum payable under any of the provisions of this Act or the rules made there under;”
[2-xxxiv The words and comma “turnover tax,” were omitted vide the Finance Act, 2004 (II of 2004), assented on 30th
June, 2004]
[2-xxxv Substituted for the comma and words “or retail tax” vide the Sales Tax (Amendment) Ordinance, 2000 (XLII
of 2000) dated 5th September, 2000). Earlier the words “or-retail lax” were inserted vide the Finance Act,
i997 (XXII of 1997]
[2-xxxvi The words “or enlistment tax” were omitted vide the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005]

[15]
 101
[(35) “taxable activity”, means any economic activity carried on by a person whether or not
for profit, and includes--
(a) an activity carried on in the form of a business, trade or manufacture;
(b) an activity that involves the supply of goods, the rendering or providing of services, or
both to another person;
(c) a one-off adventure or concern in the nature of a trade; and
(d) anything done or undertaken during the commencement or termination of the economic
activity, but does not include--
(a) the activities of an employee providing services in that capacity to an employer;
(b) an activity carried on by an individual as a private recreational pursuit or hobby; and
(c) an activity carried on by a person other than an individual which if carried on by an
individual, would fall within sub-clause (b)]
(36) “tax fraction” means the amount worked out In accordance with the following formula:-
a
------------------------
100 + a
('a' is the rate of tax specified in section 3);
102
[(37). “tax fraud” means knowingly, intentionally, or dishonestly doing any act or abetting any
action to cause loss of tax under this Act, including,-

[2-xxxvii Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005]
101 Clause (35) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008).At the time of
substitution Clause (35) was as under- .
“(35) “taxable activity” means any activity which is carried on by any person, whether or not for a pecuniary
profit, and involves in whole or in part, the supply of goods 2-xxxviii[or rendering of services on which sales tax
has been levied under the respective Ordinance and use of goods acquired for private purposes or for the
manufacture of exempt goods without making supply] to any other person, whether for any consideration or
otherwise, and includes any activity carried on in the form of a business, trade or manufacture;”
[2-xxxviii The words were inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
102 Clause (37) was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Clause (37) was
as under:-
“(37) “tax fraud” means intentionally understating or underpaying the tax liability or overstating the entitlement to
tax credit or tax refund in contravention of duties or obligations imposed under this Act by way of submission of false
return, statements or false documents or withholding of correct information or documents to cause loss of tax and
includes-
(a) suppression of supplies that are chargeable to tax under this Act;
(b) false claim of input tax credit;
(c) making taxable supplies of goods without issuing any tax invoice, in violation of the provisions of this Act or
the rules made thereunder;
(d) issuance of any tax invoice without supply of goods leading to inadmissible claim of input tax credit or
refund;
(e) evasion of tax by availing undue input tax credit or obtaining inadmissible refund by any means or methods
other than that covered under clauses (a) to (d);
(f) collection of any amount as tax but failing to deposit the same in the prescribed manner beyond a period of
three months from due date of payment of tax;
(g) falsification or causing falsification of invoice or substitution of financial records or production of fake
accounts or documents or furnishing of any false information through human, mechanical or electronic means
with an intention to evade tax due or claim inadmissible refund;
(h) tampering with or destroying of any material evidence or documents required to be maintained under this Act
or the rules made thereunder through human or digital means;

[16]
 (a) using or preparing false, forged, and fictitious documents, including returns, statements,
annexures, and invoices;
(b) false claim of input tax credit based on fictitious transactions;
(c) issuance of any tax invoice without supply of goods;
(d) tampering with or destroying of any material evidence or documents required to be
maintained under this Act or the rules made thereunder;
(e) generating fake input through manipulation of return filing system of the Board and
making fake entries in the sales tax returns or in the annexures;
(f) making fictitious compliance of section 73, including routing of payments back to the
registered person, or for the benefit of the registered person, through a bank account held
by a supplier or a purported supplier;
(g) suppression of supplies that are chargeable to tax under this Act;
(h) making taxable supplies of goods without issuing any tax invoice;
(i) suppression and nonpayment of withholding tax in the prescribed manner beyond a
period of three months from due date of payment of tax;
(j) acquisition, possession, transportation, disposal or in any way removing, depositing,
keeping, concealing, supplying, or purchasing or in any other manner dealing with, any
goods in respect of which there are reasons to believe that these are liable to confiscation
under this Act or the rules made thereunder; or
(k) making of taxable supplies without getting registration under this Act.]

103
[***]
(39) “taxable goods” means all goods other than those which have been exempted under
section 13;
(40) “tax invoice” means a document required to be issued under section 23;
(41) “taxable supply” means a supply of taxable goods made 104[***] 105[by an importer,
manufacturer, wholesaler (including dealer), distributor or retailer] other than a supply of goods which is
exempt under section 13 and includes a supply of goods chargeable to tax at the rate of zero per cent
under section 4;
106
[***]

(i) acquisition, possession, transportation, disposal or in any way removing, depositing, keeping, concealing,
supplying, or purchasing or in any other manner dealing with, any goods in respect of which there are reasons
to believe that these are liable to confiscation under this Act or the rules made thereunder;
(j) making of taxable supplies without getting registration under this Act; or
(k) intentional doing of any act or causing to do an act or omitting to take any action or causing the omission to
take any action to cause loss of tax under this Act.
Explanation.-Any act or omission mentioned in this clause shall be treated as intentional unless the person accused of
tax fraud proves that he had no intention, motive, knowledge, or reason to believe that he was committing a tax fraud.”
103 Clause (38) was omitted vide the Finance Act, 2004, (II of 2004), assented on 30th June 2004. At the time of omission
Clause (38) was as under:--
“(38) Tax identification number (TIN) means the registration number or any other number allocated to a taxable
person;”
104 The words “in Pakistan” was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
105 The words and commas were inserted vide Finance Act, 1998 (III of 1998)
106 Clause (42) was omitted vide the Finance Act, 1997 (XXII of 1997) Clause (42). At the time of omission was as under:-

[17]
 (43) “tax period” means a period of one month or such other period as the 107[Board, with the
approval of the Federal Minister-in-charge,] may 108[,] by notification in the official Gazette, specify;
109
[(43A) 110["Tier-l retailer" means a retailer falling in anyone or more of the following
categories, namely:-]
(a) a retailer operating as a unit of a national or international chain of stores;
(b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
(c) a retailer whose cumulative electricity bill during the immediately preceding twelve
consecutive months exceeds Rupees 111[twelve] hundred thousand; 112[***]
(d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on
wholesale basis to the retailers as well as on retail basis to the general body of the
consumers;] 113[***]
114
[***]
115
[(f) a retailer who has acquired point of sale for accepting payment through debit or credit
cards from banking companies or any other digital payment service provider authorized
by State Bank of Pakistan; 116[***]]
117
[(g) a retailer whose deductible withholding tax under sections 236G or 236H of the Income
Tax Ordinance, 2001(XLIX of 2001) during the immediately preceding twelve
consecutive months has exceeded the threshold as may be specified by the Board through
notification in the official Gazette]
118
[***]
119 120
[ [(h)] any other person or class of persons as prescribed by the Board.]
121
[(44) “time of supply,” in relation to,--

“(42) “taxed supply” means a supply of goods by a registered importer, distributor or 'wholesaler on which tax has
been paid at the stage of import or supply by manufacturer and no further output tax is payable thereon at the
time of supply thereof by such importer, distributor or wholesaler;”
107 Substituted the words “Federal Government,” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
108 Substituted for semi colon vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
109 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
110 Substituted the words “Tier-l retailers means,-” vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019)
assented on 27th December, 2019
111 Substituted the word “six” vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th
December, 2019
112 Omitted the word “and” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
113 Omitted the word “and” vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th
December, 2019
114 Sub-clause (e) was omitted vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023. At the time of omission
sub-clause (e) was as under:-
“(e) a retailer, whose shop measures one thousand square feet in area or more or two thousand square feet in area
or more in the case of retailer of furniture”
115 Renumbered vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
116 Omitted the word “and” vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
117 Inserted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
118 Sub-clause (ga) was omitted vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023. At the time of
omission sub-clause (ga) was as under:-
“(ga) a person engaged in supply of articles of jewellery, or parts thereof, of precious metal or of metal clad with
precious metal excluding a person whose shop measures three hundred square feet in area or less;”
119 Added vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th December, 2019
120 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021

[18]
 (a) a supply of goods, other than under hire purchase agreement, means the time at which the
goods are delivered or made available to the recipient of the supply 122[or the time when
any payment is received by the supplier in respect of that supply, whichever is earlier];
123 124
[ [***]]
(b) a supply of goods under a hire purchase agreement, means the time at which the
agreement is entered into;
(c) and services, means the time at which the services are rendered or provided 125[:]
126
[Provided that in respect of sub-clause (a), (b) or (c), where any part payment
is received,
(a) for the supply in a tax period, it shall be accounted for in the return for that tax period;
and
(b) in respect of exempt supply, it shall be accounted for in the return for the tax period
during which the exemption is withdrawn from such supply;]
(44A) “trust”, means an obligation annexed to the ownership of property and arising out of the
confidence reposed in and accepted by the owner, or declared and accepted by the owner for the benefit
of another, or of another and the owner, and includes a unit trust;
(44AA) “unit trust”, means any trust under which beneficial interests are divided into units such
that the entitlements of the beneficiaries to income or capital are determined by the number of units held;]
127
[***]

121 Clause (44) was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of
substitution Clause (44) was as under:-
“(44) “time of supply” a supply shall be deemed to have taken place at the time of delivery of goods by the
supplier:-
Provided that-
(a) where any goods are supplied by a registered person to an associated person and the goods are not
to be removed, the time of supply shall be the time at which these goods are made; available to the
recipient; and
(b) where the goods are supplied under hire purchase agreement, the time of supply shall be the time at
which the agreement is entered into.”
Earlier Clause (44) was substituted vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007. At the time of
substitution Clause (44) was as under:-
“(44) “time of supply” a supply 2-xxxix[***] shall be deemed to have taken place at the earlier of the time of
delivery of goods or the time when any payment is received by the supplier in respect of that supply:
Provided that where any part payment is received':”
(a) for a supply in a tax period, it shall be accounted for in the return for that tax period; and
(b) in respect of an-exempt supply. it shall be accounted for in the return for the tax period during
which the exemption is withdrawn from such supply:
Provided further that-
(a) where any goods are supplied by a registered person to an associated person and the goods are not
to be removed, the time of supply shall be the lime at which these goods are made avails ole to the
recipient: and
(b) where the goods are supplied under hire purchase agreement, the time of supply shall be the lime at
which the agreement is entered into;
[2-xxxix The words “made in Pakistan” were omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June,
2003]
122 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
123 Inserted vide the Finance Act, 2013 (XXII of 2013), assented on 29th June, 2013
124 Omitted the words “or the time when any payment is received by the supplier in respect of that supply, whichever is
earlier” vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
125 Substituted for the Finance Act, 2013 (XXII of 2013), assented on 29th June, 2013
126 Added vide the Finance Act, 2013 (XXII of 2013), assented on 29th June, 2013

[19]
 (46) “value of supply” means-
(a) in respect of a taxable supply, the consideration in money j eluding all Federal and
Provincial duties 128[and taxes], if any, which the supplier receives from the recipient for
that supply but excluding the amount of tax:
Provided that-
(i) in case the consideration for a supply if in kind or is partly in kind and partly in
money, the value of the supply shall mean the open market price of the supply
excluding the amount of tax; 129[***]
(ii) in case the supplier and recipient are associated persons and the supply is made
for no consideration or for a consideration which is lower than the open market
price, the value of supply shall mean the open market price of the supply
excluding the amount of tax; 130[and]
131
[(iii) in case a taxable supply is made to a consumer from general public on
installment basis on a price inclusive of mark up or surcharge rendering it higher
than open market price, the value of supply shall mean the open market price of
the supply excluding the amount of tax.]
(b) in case of trade discounts, the discounted price excluding the amount of tax; provide that
the tax invoice shows the discounted price and the related tax and the discount allowed is
in conformity with the normal business practices;
(c) in case where for any special nature of a transaction it is difficult to ascertain the value of
a supply, the open market price;
(d) in case of imported goods, 132[excluding those as specified in the Third Schedule] the
value determined under section 25 133[***] of the Customs Act, including the amount of
customs-duties and 134[federal] excise duty levied thereon; 135[***]
(e) in case where there is sufficient reasons to believe, that the value of a supply has not been
correctly declared in the invoice, the value determined by the Valuation Committee
comprising representatives of trade and the 136[Inland Revenue] constituted by the
137
[Commissioner] 138[***]

127 Clause (45) was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of omission
Clause (45) was as under:--
“(45) “turnover tax” means tax levied under section 3A of this Act.”
128 The words were inserted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
129 The word “and” was omitted vide the Finance Ordinance, 200I (XXV of 200I), assented on 18th June, 2001
130 The word was added vide the Finance Ordinance, 200I (XXV of 2001), assented on 18th June, 2001
131 Clause (iii) was added vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June, 2001
132 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
133 The word, figure and letter “or 25A” was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
134 Substituted the word “central” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
135 The word “and” was omitted vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997). Earlier this
amendment was made by the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of 1996) effective from 2nd
November. 1996: and again was made vide the Sales Tax (Amendment) Ordinance, 1997 (CXXI of 1997)
136 Substituted the words “Sales Tax Department” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010
effective from 5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance.2010
(III of 2010) promulgated on 6th February. 2010) & the Finance (Amendment) Ordinance.2009 (XXII of 2009)
promulgated on 28th October, 2009
137 Substituted the word “Collector” vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009

[20]
 139
[(f) in case of manufacture of goods belonging to another person, the actual consideration
received by the manufacturer for the value addition carried out in relation to such goods;]
140
[(g) in case of a taxable supply, with reference to retail tax, the price' of taxable goods
excluding the amount of retail tax, which a supplier will charge at the time of making
taxable supply by him, or such other price as the Board may, by a notification in the
Official Gazette, specify 141[;]]
142
[(h) in case of supply of electricity by an independent power producer, 143[or WAPDD] the
amount received on account of energy purchase price only and the amount received on
account of capacity purchase price, energy purchase price premium, excess bonus,
supplemental charges etc. shall not be included in the value of supply; 144[***]
(i) in case of supply of electric power and gas by a distribution company, the total amount
billed including price of electricity 145[or natural gas including re-gasified liquefied
natural gas] and natural gas, as the case may be, charges, rents, commissions and all
duties and taxes, local, provincial and federal but excluding the amount of late payment
surcharge and the amount of sales tax] 146[;and]
147
[Explanation.- It is clarified that the value of supply does not include the
amount of subsidy provided by the federal government or provincial governments to the
electricity consumers and has never been chargeable to tax under the Act; and]
148
[Provided that, where the Board deems it necessary it may, by notification in
the official Gazette, fix the value of any imported goods 149[, including those as specified
in the Third Schedule,] or taxable supplies or class of supplies and for that purpose fix
different values for different classes or description of same type of imported goods or
supplies:

138 Omitted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
139 Clause (f) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution clause (f) was as under:-
“(f) in case, the goods other than taxable goods are supplied to a registered person for processing.. the value of
supply of such processed goods shall mean the price excluding the amount of sales tax which such goods will
fetch on sale in the market:”
140 Sub-clause (g) was added vide the Finance Act, 1997 (XXII of 1997)
141 Substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
142 Added vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
143 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020 with effect from 1st July, 2020
144 Omitted the word “and” vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
145 Inserted vide the Tax Laws (Second Amendment) Ordinance, 2022 (Ordinance No. VI of 2022), dated 23rd August,
2022
146 Substituted vide the Finance Act, 2022 dated on 30th June, 2022
147 Inserted vide the Finance Act, 2022 dated on 30th June, 2022
148 The first and second provisos was substituted vide the Finance Act 2006 (III of 2006), assented on 30th June, 2006. At
the tune of substitution provisos was as under:-
“Provided that, where the Central Board of Revenue deems it necessary, it may, by notification in the official
Gazette, fix the value of any taxable supplies or class of supplies and for that purpose fix different va lues for
different classes or description of same type of supplies:
Provided further that where the value at which the supply is made is higher than the value fixed by the
Central Board of Revenue, the value of goods shall 3-i[, unless otherwise directed by the Board,] be the value
at which the supply is made;”
[3-i The commas and words were inserted vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th
June, 200I) and this amendment shall be deemed to have always been so inserted.]
149 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

[21]
 Provided further that where the value at which import or supply is made is higher
than the value fixed by the Board, the value of goods shall, unless otherwise directed by
the Board, be the value at which the import or supply is made 150[; and]]
151
[(j) in case of registered person who is engaged in purchasing used vehicles from general
public on which sales tax had already been paid at the time of import or manufacturing,
and which are, later on, sold in the open market after making certain value addition, value
of supply will be the difference between sale and purchase price of the said vehicleon the
basis of the valuation method prescribed by the Board.]
152
[(46A) “whistleblower” means whistleblower as defined in section 72D of the Sales Tax Act,
1990;]
(47) “wholesaler 153[includes a dealer and]” means any person who carries on, whether
regularly or otherwise, the business of buying and selling goods by wholesale or of supplying or
distributing goods, directly or indirectly, by wholesale for cash or deferred payment or for commission or
other valuable consideration or stores such goods belonging to others as an agent for the purpose of sale;
and includes 154[ a person supplying taxable goods to 155[ a person 156[ who deducts income tax at source
under the Income Tax” Ordinance, 2001 (XLIX of 2001)]] 157[***]; and
(48) “zero-rated supply” means a taxable supply which is charged to tax at the rate of zero
per cent under section 4.]

CHAPTER-II
SCOPE AND PAYMENT OF TAX
3. Scope of tax.-(1) Subject to the provisions of this Act, there shall be charged, levied and paid a
tax known as sales tax at the rate of 158[ 159[ 160[eighteen]]] percent of the value of--

150 Substituted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
151 Added vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
152 Added vide Finance Act, 2015
153 The words were inserted vide the Finance Act, 1997 (XXII of 1997
154 The words, brackets and figures were inserted vide Finance Act, 1998 (III of 1998)
155 Substituted for the words, brackets, figures and comma “persons deducting advance tax under sub-section (4) of
section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979)” vide the Finance Act, 2004 (II of 2004), assented on
30th June, 2004
156 Substituted for the words, figures and brackets “whose income is not liable to tax under the Income Tax Ordinance,
2001 (XLIX of 2001) but has deducted income tax at source under section 153 of the said Ordinance” vide the Finance
Act, 2006 (III of 2006), assented on 30th June, 2006
157 The comma and the words '', and a person who in addition to making retail supplies is engaged in wholesale business”
omitted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
158 Substituted the word 3-ii[seventeen] vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011. Provided, in
case of imports, such substitution shall be deemed to have been made on 20th June, 2011
[3-ii Substituted the word sixteen vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010]. Earlier
the following changes were made: -
i) The word “sixteen” was Substituted the words “fifteen” vide the Finance Act, 2008 (I of 2008),
assented on 26th June, 2008.
ii) The word “fifteen” was Substituted the words “twelve-and a half' vide the Sales Tax (Amendment)
Act, 1999 (I of 1999) effective from 1st December, 1998
iii) The same amendment was made by the Sales Tax (Second Amendment) Ordinance, 1998 (XIV of
1998), effective from 1st December, 1998
iv) The words “twelve and a half' was Substituted the word “eighteen” by the Finance Supplementary
(Amendment) Act, 1997 (IV of 1997)
v) The word “eighteen” was Substituted the word “fifteen” vide the Finance Act, 1996 (IX of 1996)
vi) The word “fifteen” was Substituted the words ''twelve and half' vide Finance Act, 1993]
159 Substituted the word sixteen vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
160 Substituted the word “seventeen” vide the Finance (Supplementary) Act, 2023 (No. X of 2023)], dated 23rd February,
2023

[22]
 (a) taxable supplies made 161[***] by a registered person in the course or furtherance of any
162
[taxable activity] carried on by him; and
163
(b) goods imported into Pakistan [irrespective of their final destination in territories of
Pakistan.]
164
[(1A) Subject to the provision of sub-section (6) of section 8 or any notification issued
thereunder, where taxable supplies are made to a person who has not obtained registration number, 165[or

161 The words “in Pakistan” was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
162 Substituted the word “business” vide the Finance Act, 1996 (IX of 1996)
163 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
164 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013. Earlier Sub-section (IA) was omitted
vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of omission sub-section (1A), which
was inserted vide Finance Act, 1998 (III of 1998), was as under:-
3-iii
[(1A) 3-iv[Subject to the provision of sub-section (6) of section 8 or any notification issued there under where]
taxable supplies are made 3-v[***] to a person other than a registered person there shall be charged, levied and
paid a further tax at the rate of 3-vi[three] per cent of the value in addition to the rate specified in 3-vii[sub-
section (I), 3-viii[***] sub-section (2), and sub-sections (4) and (5):
[3-iii Inserted vide the Finance Act, 1998
[3-iv Substituted the word “Where” vide the Sales Tax (Amendment) Ordinance, 200I (VII of 2001), assented on
7th February, 2001)]
[3-v The words “in Pakistan” was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[3-vi Substituted the word “one and half' vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June,
200I). Earlier the word “one and half” was Substituted the word “three” vide the Finance Ordinance, 2000
(XXI of 2000) and the word “three” was Substituted the word “one” vide the Finance Act, 1999 (IV of 1999),
assented on 29th June, 1999
[3-vii Substituted for the expression “sub-section (I)” vide the Finance Act, 1999 (IV of 1999), assented on 29th
June, 1999]
[3-viii The words bracket and a letter “clause 3-ix[(a) of] was omitted vide the Finance Ordinance, 2002 (XXVII of
2002) promulgated on I5th June, 2002]
[3-ix Substituted for the brackets and letter “(c)” vide the Finance Ordinance, 200I (XXV of 2001), assented on
18th June, 2001]
Provided that the aforesaid 3-x[***] further tax shall not be charged, levied and paid if the said
taxable supplies are made:-
(1) by a person registered as a retailer; or
(2) by any registered person to a person whose income is not liable to tax 3-xi[under the Income Tax
Ordinance, 2001 (XLIX of 2001) but has deducted income tax at source under section 153] of the
said Ordinance 3-xii[; or]]
[3-x The words “one and half per cent” was omitted vide the Finance Ordinance, 2001 (XXV of 2001), assented
on 18th June, 2001). Earlier the word “one and half” was Substituted the word “three” vide the Finance
Ordinance, 2000 (XXI of 2000) and the word “three” was Substituted the word “one” vide the Finance Act,
1999 (IV of 1999), assented on 29th June, 1999]
[3-xi Substituted for the full stop vide the Sales Tax (Amendment) Ordinance, 1999 (XII of 1999) promulgated on
13th August, 1999]
[3-xii Substituted for the words, comma, figures and brackets “under the Income Tax Ordinance, 1979 (XXXI of
1979) but has deducted income tax at source under sub-section (4) of section 50” vide the Finance Act, 2003
(I of 2003), assented on 16th June, 2003]
3-xiii
[(3) By a registered person on the supply of—
(i) electrical energy;
(ii) natural gas;
(iii) petroleum gas including liquefied petroleum gas; 3-xiv[***]
(iv) petroleum products 3-xv[excluding asphalt, bitumen and lubricants all sorts] 3-xvi[;3-
xvii
[***]]
[3-xiii Clause (3) was added the Sales Tax (Amendment) Ordinance, 1999 (XII of 1999) promulgated on 13th
August, 1999]
[3-xiv The word “and” was omitted vide the Sales Tax (Amendment) Ordinance, 2002 (XVI of 2002), assented on
21st March, 2002
[3-xv The words were inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[3-xvi Substituted for the full stop vide the Finance Ordinance, 2000 (XXI of 2000)]

[23]
he is not an active taxpayer] there shall be charged, levied and paid a further tax at the rate of 166[ 167[
168
[four] ]] per cent of the value in addition to the rate specified in sub-sections (1), (1B), (2), (5) 169[, (6)
and section 4] of this section:
Provided that the Federal Government may, by notification in the official Gazette, specify the
taxable supplies in respect of which the further tax shall not be charged, levied and paid.
170
[(1B) On the goods specified in the Tenth Schedule, in lieu of levying and collecting tax under
sub-section (1), the tax shall be levied and collected, in the mode and manner specified therein-
(a) on the production capacity of plants, machinery, undertaking, establishments or
installation producing 171[or] manufacturing such goods; or
(b) on fixed basis, from any person who is in a position to collect such tax due to the nature
of the business, and different rates may be so prescribed for different regions or areas.]
172
[(2) Not withstanding the provisions of sub-section (1),

[3-xvii The word “and” was omitted vide the Finance Ordinance, 2002 (XXVII .of 2002) promulgated on l5th June,
2002]
xviii
[(V) substances registered as drugs under the Drugs Act, 1976 (XXXI of 1976) and 'medicaments as are
classifiable under any heading of Chapter 30 of the First Schedule. to the Customs Act, 1969 (IV of
1969); xix[***]]
[3-xviii Sub-clause (v) was added vide the Sales Tax (Amendment) Ordinance, 2002 (XVI of 2002), assented on 21st
March, 2002]
[3-xix The word “and” was omitted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June,
2002]
3-xx
[(vi) vegetable ghee and cooking oil; and
(vii) fertilizers]
[3-xx Sub-clauses (vi) & (vii) were added vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on I5th
June, 2002]
3-xxi
[(4) to a person enrolled for the purpose of turnover tax 3-xxii[at the rate of two per cent].]
[3-xxi Clause (4) added by the Finance Ordinance, 2000 (XXI of 2000]
[3-xxii The words were added vide the Sales Tax (Amendment) Ordinance, 2000 (XLII of 2000), assented on 5th
September, 2000]
165 Inserted vide the Finance Act, 2022 dated on 30th June, 2022
166 Substituted the word “one” vide Finance Act, 2015
167 Substituted the word “two” vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
168 Substituted the word “three” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
169 Substituted for the expression “and (6)” vide the Finance Act, 2017 assented on 19th June, 2017
170 Sub-section (1B) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution sub-section (1B) was as under:-
“(1B) The Board may, by notification in the official Gazette, in lieu of levying and collecting tax under sub-section
(1) on taxable supplies, levy and collect tax--
(a) on the production capacity of plants, machinery, undertaking, establishments or installations
producing or manufacturing such goods; or
(b) on fixed basis, as it may deem fit, from any person who is in a position to collect such tax due to the
nature of the business.”
171 Omitted the words “on” vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
172 Sub-section (2) was substituted vide the Finance Ordinance, 200I (XXV of 200I), assented on 18th June, 2001. At the
time of substitution sub-section (2) was as under:-
“
(2) Notwithstanding the provisions of sub-section (1)--
3-xxii
i[***]
[3-xxiii Sub-clause (a) was omitted vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997)]. At the
time of omission clause (a) was as under:--
“(a) taxable supplies made or goods imported, specified in the First Schedule shall be charged to tax at
the rate of twenty-three per cent of the value thereof;”
3-xxiv
[***]
[3-xxiv Clause (b) was omitted vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997).] Earlier the
same amendment was made by the Sales Tax (Third Amendment) Ordinance, 1996 (CXXI of 1996), effective
from 29th December, 1996.]

[24]
 (a) taxable supplies 173[and import of goods] specified in the Third Schedule shall be
charged to tax at the rate of [ 174[eighteen]] per cent of the retail price 175[or in
case such supplies 176[or imports] are also specified in the Eighth Schedule, at the
rates specified therein and the retail price thereof,] along with the amount of
sales tax shall be legibly, prominently and indelibly printed or embossed by the
manufacturer 177[, or the importer, in case of imported goods,] on each 'article,
packet, container, package, cover or label, as the case may be 178[:]

At the time of omission clause (b) was as under:--

“(b) taxable supplies made or goods imported, specified, in the Second Schedule shall be charged to tax
at the rate of five per cent of the value thereof;”
(c) taxable supplies specified in the third Schedule shall be charged to tax at the rate of 3-xxv[fifteen]
per cent of the retail price which along with the amount of sales tax shall be legibly, prominently
and indelibly printed or embossed by the manufacturer on each article, packet, container, package,
cover or label, as the case may be;
[3-xxv Substituted the words “twelve and a half' vide the Sales Tax (Amendment) Act, 1999 (I of 1999) effective from
1st December, 1998, and same amendment was made by the Sales Tax (Second Amendment) Ordinance, 1998
(XIV of 1998), effective from 1st December, 1998. Earlier the words “twelve and a half' was Substituted the
word “eighteen” vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997)]
3-xxvi
[***]
[3-xxvi Clause (d) was omitted vide Finance Act, 1998 (III of 1998)]. At the time of omission Clause (d) was as
under:-
“(d) taxable supplies specified in the Fourth Schedule shall be charged to tax at the fixed rate specified
therein till the 30th June, 3-xxvii[1998]
Provided that a person whose supplies fall under this clause may opt for paying sales tax
at any other rate applicable to such supplies under this section subject to the condition that he shall
not be allowed to adopt fixed tax scheme unless a notice of his intention to adopt such scheme is
given to the Collector three months prior to such adoption 3-xxviii[;]”
[3-xxvii Substituted for the figure “1997” vide the Finance Act, 1997 (XXII of 1997)]
[3-xxviii Substituted for the full stop vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997). Earlier this
amendment was made vide the Sales Tax (Second Amendment) Ordinance, 1996 (IX of 1996) effective from
2nd November, 1996 and vide the Sales Tax (Amendment) Ordinance, 1997 (XXXIX of 1997)]
3-xxix
[***]
[3-xxix Clause (e) was omitted vide the Finance Act, 1997 (XXII of 1997).Earlier it was added vide the Finance
Supplementary (Amendment) Act, 1997 (IV of 1997) and by the Sales Tax (Second Amendment) Ordinance,
1996 (IX of 1996), effective from 2nd November, 1996 and by the Sales Tax (Amendment) Ordinance, 1997
(XXXIX of 1997) effective from 2nd November, 1996].
At the time of omission clause (e) was as under:--
“(e) taxable supplies made or goods imported, specified in the Seventh Schedule shall be charged to tax
at rate of ten per cent of the value thereof.”
Before the above substitution, the sub-section (2) was also substituted vide the Finance Act, 1996 (IX of 1996). At that
time of substitution sub-section (2) was as under:--
“(2) Notwithstanding the provisions of sub-section (I) the Federal Government may, vide Notification in
the official Gazette, declare that--
(a) in respect of any goods or class of goods imported into or produced in Pakistan or any
taxable supplies made by registered persons the tax shall be charged at such 3-xxx[higher
or lower] rate or rates as may be specified in the Notification;
(b) in respect of any goods or class of goods the tax shall be charged on the whole sale or
retail price as may be specified.”
[3-xxx Words were inserted vide Finance Act, 1994 (XII of 1994)]
173 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
174 Substituted the word “seventeen” vide the Finance (Supplementary) Act, 2023 (No. X of 2023)], dated 23rd February,
2023
175 Substituted for the word “which” vide the Finance Act, 2017 assented on 19th June, 2017
176 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
177 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
178 Substituted for semicolon and word “; and” vide the Finance Act, 2001 (IV of 2007), assented on 30th June, 2007

[25]
 179
[Provided 180[further] that the Federal Government may, subject to
such conditions and restrictions as it may impose, by notification in the official
Gazette, declare that the tax on goods specified in the Third Schedule shall be
collected and paid at such higher rate or rates on the retail price thereof, as may
be specified in the said notification:]
181
[Provided that the 182[Board] may, by notification in the official
Gazette, exclude any taxable supply 183[or import] from the said Schedule or
include any taxable supply 184[or import] therein; 185[***]
186
[(aa) goods specified in the Eighth Schedule shall be charged to tax at such rates and
subject to such conditions and limitations as specified therein; and]
187
[(b) the 188[ 189[Federal Government]] may, subject to such conditions and restrictions
as it may impose, by notification in the official Gazette, declare that in respect of
any taxable goods, the tax shall be charged, collected and paid in such manner
and at such higher or lower rate or rates as may be specified in the said
notification.;]
(3) The liability to pay the tax shall be,--
(a) in the case of supply of goods 190[***], of the person making the supply, 191[***]
(b) in the case of goods imported into Pakistan, of the person importing the goods;
192
[(c) in the case of supply of digitally ordered taxable goods by online market place,
website and software application from within Pakistan during the course of e-
commerce, the liability to collect and pay tax shall be of payment intermediary
including a banking company, a financial institution, licensed exchange company
or payment gateway in case the payment is made digitally and of the courier
delivering the goods where those are supplied on Cash on Delivery (CoD) basis
at the rates provided in the Eleventh Schedule.]

179 Inserted vide the Finance (Supplementary) Act, 2023 (No. X of 2023)], dated 23rd February, 2023
180 Inserted vide the Finance (Supplementary) Act, 2023 (No. X of 2023)], dated 23rd February, 2023
181 Proviso was added vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
182 Substituted the words “Federal Government” vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated
15th January, 2022.
183 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
184 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
185 The word “and”, at the end was omitted vide the Finance Act, 2014.
186 Inserted vide the Finance Act, 2014.
187 Clause (b) was Substituted vide Finance Act, 2015. At the time of substitution clause (b) was as under:-
(b) the Federal Government may, subject to such conditions and restrictions as it may impose, by notification in
the official Gazette, declare that in respect of any goods or class of goods imported into or produced 3-
xxxi
[***] or any taxable supplies made by a registered person or a class of registered persons, the tax shall be
charged, collected and paid in such manner and at such higher or lower rate or rates as may be specified in
the said notification.]
[3-xxxi The words “in Pakistan” was omitted vide the Finance Act, 2003 (l of 2003), assented on 16th June, 2003]
188 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
189 Substituted for the word “Board with the approval of the Federal Minister-in-charge” vide Finance Act, 2018, (XXX
of 2018) assented on 22nd May, 2018
190 The words “in Pakistan” was omitted vide the Finance Act, 2003 (l of 2003), assented on 16th June, 2003
191 Omitted the word “and” vide the Finance Act, 2025, dated 29th June, 2025
192 Added vide the Finance Act, 2025, dated 29th June, 2025

[26]
 193
[(3A) Notwithstanding anything contained in clause (a) of sub-section (3), the 194[Board, with
the approval of the Federal Minister-in-charge,] may, by a notification in the official gazette, specify the
goods in respect of which the liability to pay tax shall be of the person receiving the supply.
195
[(3B) Notwithstanding anything contained in sub-sections (1) and (3), sales tax on the
import and supply of the goods specified in the Ninth Schedule to this Act shall be charged, collected and
paid at the rates, in the manner, at the time, and subject to the procedure and conditions as specified
therein or as may be prescribed, and the liability to charge, collect and pay the tax shall be on the
persons specified therein.]
196
[***]
197
[(5) The 198[ 199[Federal Government] are in addition to the tax levied under sub-sections (1)
200 201
[***] [***] sub-section (2) and sub-section (4), levy and collect 202[tax at such rate or amount] not

193 Sub-section (3A) was inserted vide Finance Act, 1998 (II of 1998)
194 Substituted the words “Federal Government” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
195 Inserted vide the Finance Act, 2014
196 Sub-section (4) was omitted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008). At the time of
omission sub-section (4) was as under:--
“(4) The Federal Government may, for a period not beyond the 30th June, 2003, in addition to or in lieu of
levying and collecting the tax under sub-section (I), levy and collect such withholding tax not exceeding five
per cent of the value on any supply of textile goods to be payable by any registered person or class of
registered persons, supplying such goods or class of goods, in such mode, manner and at time, and subject to
such conditions and limitations as it may specify by a notification in the official Gazette.”
Earlier sub-section (4) was substituted vide the Sales Tax (Amendment) Act, 1999 (I of 1999) effective from 1st
December, 1998. At the time of substitution sub-section (4) was as under:--
(4) The Federal Government may, in addition to or in lieu of levying and collecting the tax under sub-
section (I), levy and collect such fixed amount of tax on any goods or class of goods to be payable
by any registered person or class of registered persons, supplying such goods or class. of goods, in
such mode, manner and at time, and subject to such conditions and limitations as it may specify by
a notification in the Official Gazette.]
Initially, sub-section (4) was added vide the Finance Act, 1997 (XXII of 1997). That sub-section (4) was omitted vide
the Finance Act, 1996 (IX of 1996). At the time of omission the sub-section (4) was as under:--
3-xxxii
[(4) With the prior approval of the Federal Government, the Central Board of Revenue 3-xxxiii[or the
Collector may], in lieu of levying and collecting the tax under sub-section (I), by Notification in the
official Gazette, levy arid collect such fixed amount of tax as it may deem fit on any goods or class
of goods, payable by any establishment or undertaking producing or manufacturing such goods.]”
[3-xxxii Sub-section (4) was added vide the Finance Act, 1991]
[3-xxxiii Substituted for “, may” vide Finance Act, 1994 (XII of 1994)]
197 Sub-section (5) was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999. Earlier a different
sub-section (5) was omitted vide the Finance Act, 1996 (IX of 1996). At the time of omission sub-section (5) at was as
under:--
3-xxxiv
[(5) For the levy and collection of such fixed amount of tax, the Board 3-xxxv[or the Collector] may--
(a) prescribe, inter alia--
(i) the manner in which, and the time at which such amount shall be payable; and
(ii) the period for which the amount so fixed shall be effective; and
(b) appoint, empower or constitute any agency, authority or committee, as it may deem fit, to receive,
gather, collate and analyse such information or documents and summon any person, as may be
necessary, for making recommendations for consideration of the Board 3-xxxv[or the Collector].]
[3-xxxiv Words were inserted vide Finance Act, 1994 (X11 of 1994)]
[3-xxxv Words were added vide Finance Act, 1994 (XII of 1994)]
198 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
199 Substituted for the word “Board with the approval of the Federal Minister-in-charge” vide Finance Act, 2018, (XXX
of 2018) assented on 22nd May, 2018
200 The word, brackets, figure and letter “and (1A) were omitted vide the Finance Act, 2004 (If of 2004), assented on 30th
June, 2004
201 The words, brackets & letter “clause (c) of were omitted vide the Finance Ordinance, 2002(XXVI of 2002)
promulgated on 15th June, 2002
202 Substituted the words “such extra amount of tax” vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June,
2013

[27]
exceeding 203[sixteen] per cent of the value of such goods or class of goods and on such persons or class
of persons, in such mode, manner and at time, and subject to such conditions and limitations as it may, by
rules, prescribe.]
204
[(6) The Federal Government or the 205[Board] may, in lieu of the tax under sub-section (1), by
notification in the official Gazette, levy and collect such amount of tax as it may deem fit on any supplies
or class of supplies or on any goods or class of goods and may also specify the mode, manner or time of
payment of such amount of tax.]
206
[(7) The tax shall be withheld 207[***] at the rate as specified in the Eleventh Schedule, by
any person or class of persons 208[being purchaser of goods or services] 209[, other than the services liable
to pay sales tax under a Provincial enactment,] as withholding agent for the purpose of depositing the
same, in such manner and subject to such conditions or restrictions as the Board may prescribe in this
behalf through a notification in the official Gazette 210[:]]
211
[***]
212
[(7A) The tax withheld as provided in the Eleventh Schedule by the payment intermediary or
the courier, as the case may be, shall be final discharge of tax liability in respect of taxable supplies of
digitally ordered goods by;
(i) cottage industry as defined in clause (5AB) of section 2 of this Act; and
(ii) retailers other than tier-I retailers]
213
[(8) Notwithstanding anything contained in any law or notification made thereunder 214[, but
subject to the provisions of clause (b) of sub-section (2)], in case of supply of natural gas to CNG stations,

203 Substituted the word 3-xxxvi[seventeen] vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011 provided,
in case of imports, such substitution shall be deemed to have been made on 20th June, 2011
[3-xxxvi Substituted the word 3-xxxvii[sixteen] vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010]
[3-xxxvii Substituted the word “fifteen” vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008). Earlier
the word “fifteen” was Substituted the words “twelve-and a half' by the Sales Tax (Amendment) Act, 1999 (I
of 1999) effective from 1st December, 1998, and same amendment was made by the Sales Tax (Second
Amendment) Ordinance, 1998 (XIV of 1998), effective from 1st December, 1998. Earlier the words “twelve
and a half' was Substituted the word “eighteen” vide the Finance Supplementary (Amendment) Act, 1997 (IV
of 1997); the word “eighteen” was Substituted the word “fifteen” vide the Finance Act, 1996 (IX of 1996);
and the word “fifteen” was Substituted the words ''twelve and half' vide Finance Act, 1993]
204 Sub-section (6) was added vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June, 2001
205 Substituted the words “Central Board of Revenue” vide the Finance Act, 2007 (IV of 2007), assented on 30th June,
2007
206 Sub-section (7) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution sub-section (7) was as under:-
“(7) The Federal Government may, by notification in the official Gazette, specify any person or class of persons
as withholding agent for the purpose of deduction and deposit of tax at the specified rate in such manner and subject to
such conditions or restrictions as the Federal Government may prescribe in this behalf.”
207 Omitted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
208 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
209 Inserted vide the Finance Act, 2022 dated on 30th June, 2022
210 Substituted vide the Tax Laws (Third Amendment) Ordinance, 2021 (XXII OF 2021) dated 15th September, 2021.
211 Proviso was omitted vide Finance Act, 2025, dated 39th June, 2024. At the time of omission Proviso was as under:-
“Provided that in case of the online market place facilitating the sale of third party goods, the liability to withhold tax
on taxable supplies of such party at the rates specified in column (4) against S. No. 8 of the Eleventh Schedule to the
Sales Tax Act, 1990 shall be on the operator of such market place.”
212 Inserted vide Finance Act, 2025 dated 29th June, 2005
213 Substituted for sub-section (8) vide the Finance Act, 2014. At the time of substitution sub-section (8) was as under:--
3-xxxviii
[(8) Notwithstanding the rate of sales tax as contained in sub-section (1) and notwithstanding anything
contained in any law or notification made there under, in case of supply of natural gas to CNG stations, the Gas
Transmission and Distribution Company shall charge sales tax from the CNG stations at the rate of nine per cent in
addition to the sales tax chargeable under sub-section (1) on the value of supply, where the value for the purpose of

[28]
the Gas Transmission and Distribution Company shall charge sales tax from the CNG stations at the rate
of 215[eighteen] per cent of the value of supply to the CNG consumers, as notified by the Board from time
to time, but excluding the amount of tax, as provided in clause (46) of section 2.]
216
[(9) Notwithstanding anything contained in sub-section (i), tax shall be charged from retailers,
other than those falling in Tier-1, through their monthly electricity bills, at the rate of five percent where
the monthly bill amount does not exceed rupees twenty thousand and at the rate of seven and half percent
where the monthly bill amount exceeds the aforesaid amount and the electricity supplier shall deposit the
amount so collected directly without adjusting against his input tax:
Provided that the tax under this sub-section shall be in addition to the tax payable on supply of
electricity under sub-sections (1), (1A) and (5):
Provided further that the Commissioner of Inland Revenue having jurisdiction shall issue order to
the electricity supplier regarding exclusion of a person who is either a Tier-I retailer or not a retailer.]
217
[(9A) Notwithstanding anything contained in this Act, Tier-1 retailers shall pay sales tax at the
rate as applicable to the goods sold under relevant provisions of this Act or a notification issued there
under:

levy of sales tax shall include price of natural gas, charges, rents, commissions acid all local provincial and Federal
duties and taxes, but excluding the amount of sales tax, as provided in clause (46) of section (2) This rate shall include
the rate of tax chargeable under sub-section (1) and nine per cent in lieu of value addition made by the CNG stations.
The rate of sales tax under this sub-section shall have effect and shall be deemed to have taken effect on and from the
1st day of July, 2007.
Explanation.- The rate of nine per cent in lieu of value addition is less than the standard rate of tax
chargeable under sub-section (1), as all input tax adjustments have been catered for while determining the figure of
nine per cent-]
[3-xxxviii Added vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013]
214 Inserted vide Finance Act, 2015
215 Substituted the word “seventeen” vide the Finance (Supplementary) Act, 2023 (No. X of 2023)], dated 23rd February,
2023
216 Sub-section (9) was substituted vide the Tax Laws (Second Amendment) Ordinance, 2022 (Ordinance No. VI of 2022),
dated 23rd August, 2022. At the time of substitution sub-section (9) was as under:
“(9) Notwithstanding anything contained in sub-section (1), tax shall be charged from retailers other than those
falling in Tier-1,] through their monthly electricity bills, at the rate of i[rupees three thousand per month where the
monthly bill amount does not exceed rupees thirty thousand, rupees five thousand per month where the monthly bill
amount exceeds rupees thirty thousand but does not exceed rupees fifty thousand and rupees ten thousand per month
where the monthly bill amount exceeds rupees fifty thousand] and the electricity supplier shall deposit the amount so
collected directly without adjusting against his input tax
Provided that the tax under this sub-section shall be in addition to the tax payable on supply of electricity
under sub-sections (1), (1A) and (5);
Provided further that the Commissioner of Inland Revenue having jurisdiction shall issue order to the
electricity supplier regarding exclusion of a person who is either a Tier-1 retailer, or not a retailer.”
i. Substituted the words “five per cent where the monthly bill amount does not exceed rupees twenty thousand
and at the rate of seven and half per cent where the monthly bill amount exceeds the aforesaid amount” vide
the Finance Act, 2022 dated on 30th June, 2022
217 Sub-section (9A) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution sub-section (9A) was as under:-
“(9A) Notwithstanding anything contained in this Act, Tier-1 retailers shall pay sales tax at the rate specified in sub-
section (1) and shall observe all the applicable provisions of this Act and rules made thereunder, including the
requirement to file monthly sales tax returns in the manner prescribed in Chapter II of the Sales Tax Rules, 2006:
Provided that the retailers making supplies of finished goods of the five sectors specified in Notification No.
S.R.O. 1125(I)/2011, dated the 31st December, 2011 shall pay sales tax in respect of such supplies at the rates
prescribed in the said Notification:
Provided further that Tier-1 retailers, in lieu of net tax payable at the applicable rate, shall have an option to
pay sales tax under the turnover regime at the rate of two percent of their total turnover, including turnover relating to
exempt supplies, without adjustment of any input tax whatsoever:

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 218
[***]
219
[***]
220
[(9AA) In respect of goods, specified in the Thirteenth Schedule, the minimum production for
a month shall be determined on the basis of a single or more inputs as consumed in the production process
as per criterion specified in the Thirteenth Schedule and if minimum production so determined exceeds
the actual supplies for the month, such minimum production shall be treated as quantity supplied during
the month and the liability to pay tax shall be discharged accordingly.]
221
[(10) Notwithstanding anything contained in this Act, the Board may, by notification in the
official Gazette, require any person or class of persons to integrate their invoice issuing machines with the
Board's computerized system for real time reporting of sales in such mode and manner and from such date
as may be prescribed.]
222
[***]
223
[(12) Notwithstanding anything contained in this Act, the Federal Government may, in lieu of
or in addition to the tax under sub-section (9), by notification in the official Gazette, levy and collect such
amount of tax at such rates and from such date as it may deem fit, from retailers, other than those falling
in Tier-1, through their monthly electricity bill, and may also specify the mode, manner or time of
payment of such tax:
Provided that different rates or amounts of tax may be specified for different persons or class of
persons.]
224
[***]

Provided also that retailers opting to pay sales tax on the basis of total turnover shall file an option to the
Chief Commissioner of Regional Tax Office or Large Taxpayers Unit having jurisdiction by fifteenth day of July
opting to pay sales tax on the basis of turnover and such an option shall remain in force for the whole financial year.”
218 Provison was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omisstion proviso
was as under:-
“Provided that the customers of a Tier-1 retailer shall be entitled to receive a cash back of up to five percent of the tax
involved, from such date, in the manner and to the extent, as may be prescribed by the Board:”
219 Proviso was omitted vide the Finance Act, 2025, dated 29th June, 2025
220 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
221 Added vide the Tax Laws (Third Amendment) Ordinance, 2021 (XXII OF 2021) dated 15th September, 2021.
222 Sub-section (11) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission sub-
section (11) was as under:-
“(11) Notwithstanding anything contained in the Act, the Board through Notification in the official Gazette, may
require class of persons to integrate their invoice issuing machines with the Board’s Computerized System for real time
reporting of sales in such mode and manner and from such date as may be prescribed.”
223 Added vide the Tax Laws (Second Amendment) Ordinance, 2022 (Ordinance No. VI of 2022), dated 23rd August, 2022
224 Section 3AA was omitted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008). At the time of omission
Section 3AA was as under:--
“3AA. Retail tax.-(1) Subject to the provisions of this section, and such conditions and procedures regarding the mode,
manner, and time of payment, and from such date as may be specified by the Federal Government, there shall
be charged, levied and paid retail tax at the rate specified in section 3, by a retailer who is making taxable
supplies in the course or furtherance of any taxable activity carried by him 3AA-i[:]
3AA-ii
[Provided that the Federal Government may, subject to such conditions and restrictions as it
may impose, by notification in the official Gazette, declare that in respect of any goods or class of goods
imported into or produced or any taxable supplies made by a registered retailer or class of registered
retailers, the tax shall be charged, collected and paid in such manner and at such higher or lower rate or
rates as may be specified in the said notification.]
[3AA-i Substituted for the full stop vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005]
[3AA-ii Proviso was added vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005]
(2) Subject to such modifications as the Board may specify, all provisions of this Act shall apply to the
charge, levy, deduction of input tax, payment, collection and enforcement of the retail tax, as if it
were sales tax under section 3.

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 (3) The application for registration as tax payer of retail tax shall be made to the Collector in such
form and manner as may be specified by the Board.
3AA-iii
[***]
[3AA-iii Sub-section (4) was omitted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005. At the
time of omission sub-section (4) was as under:--
“(4) Notwithstanding the provisions of sub-section (I), a retailer not liable to pay tax, shall, after
voluntary registration 3AA-iv[as prescribed under section 14 opt for paying sales tax under this
section 3AA-v[* * *] 3AA-vi[.]”
[3AA-iv Substituted the words and figures “under section 18” vide the Finance Act, 2004 (II of 2004), assented on
30th June, 2004]
[3AA-v The comma and words '', subject to the condition that he shall not thereafter be entitled to be de-registered
until the expiry of two years from the date of such registration” was omitted vide the Finance Act, 2003 (I of
2003), assented on 16th June, 2003]
[3AA-vi Substituted for the 3AA-vii[:] vide the Finance Ordinance, 2002 (XXYII of 2002) promulgated on 15th June,
2002]
[3AA-vii Substituted for the full stop vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000) promulgated on
24th May, 2000]
3AA-viii
[***]
[3AA-viii Proviso was omitted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002. At
the time of omission proviso was as under:--
3AA-xi
[Provided that the time-limit of two years for de-registration under this sub-section shall not
apply to a retailer who opts for payment of turnover tax under sub- section (5) of this section.]
[3AA-ix Proviso was added vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000) promulgated on 24th May,
2000]
3AA-x
[***]
[3AA-x Sub-section (5) was omitted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June,
2002, which was initially, added vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000) promulgated
on 24th May, 2000. At the time of omission sub-section (5) was as under:--
“
(5) Not withstanding anything contained in this section, a retailer. irrespective of his turnover may, in
lieu of retail tax payable under sub-section (I), opt for payment of turnover tax under sub-section
(I) of section 3A and all provisions relating to collection and payment of turnover tax shall apply to
such person:”
Provided that an option exercised under this sub-section shall ipso facto expire on 30th
day of June 200I, where-after such person shall charge and pay retail tax in terms of sub-section
(I):
Provided further that for the purpose of keeping record by a person opting to pay
turnover tax under this sub-section the provisions of section 22 shall apply”
Earlier, the Section 3AA was substituted vide Finance Act, 1998 (III of 1998). At the time of substitution section 3AA
was as under:--
3AA-xi
[3AA. Retail Tax--(1) Subject to the provisions of this section, and such conditions and procedures
regarding the mode, manner, and time of payment, and from such date as may be specified by the
Federal Government, there shall be charged, levied and paid retail tax at the rate of three per cent
of the taxable turnover by a wholesaler and, a retailer who is making taxable supplies in the course
or furtherance of any taxable activity carried by him:
Provided that his taxable turnover is not less than one million rupees in any period
during the last twelve months:
Provided further that the provisions of this section shall not apply to any of the aforesaid
person who is making zero rated supplies as specified in section 4
Explanation.-For the purpose of this section, “taxable turnover” means the total value of
all taxable supplies of goods other than goods taxable at the rate of zero percent foods tuff,
medicines and books.
(2) Subject to such modifications as the Board may specify, all provisions of this Act shall
apply to the charge, levy, payment, collection and enforcement of the retail tax, as if it
were sales tax under section 3.
(3) The application for enrolment as taxpayer of retail tax shall be made to the Collector in
such form and manner as may be specified by the Board.
(4) Notwithstanding the provision of sub-section (I), a person liable to pay tax under sub-
section (I) may, after voluntary registration under section 18, opt for paying sales tax
under section 3 other than clause (d) of sub-section (2) and sub-section (4) of that
section, instead of paying retail tax under this section, subject to the condition, that he

[31]
 225
[***]
226 227
[ [3B]. Collection of excess tax, etc.-(1) Any person who has collected or collects any tax or charge,
whether under misapprehension of any provision of this Act or otherwise, which was not payable as tax or
charge or which is in excess of the tax or charge actually payable and the incidence of which has been
passed on to the consumer, shall pay the amount of tax or charge so collected to the Federal Government.
228
[(2) Notwithstanding anything contained in any law or judgment of a court, including the
Supreme Court and a High Court, any amount payable to the Federal Government under sub-section (1)
shall be deemed to be an arrear of tax or charge payable under this Act and shall be recoverable
accordingly and any claim for refund in respect of such amount shall neither be admissible to the
registered person nor payable to any court of law or to any person under direction of the court.]
(3) The burden of proof that the incidence of tax or charge referred to in sub-section (1) has
been or has not been passed to the consumer shall be on the person collecting the tax or charge.]
4. Zero rating.-Notwithstanding the provisions of Section 3 229[except those of sub-section (1A)],
230
[***] the following goods shall be charged to tax at the rate of zero per cent:--
231
[(a) goods exported, or the goods specified in the Fifth Schedule;]

shall not thereafter be entitled to be de-registered until the expiry of two years from the
date of such registration.]”
[3AA-xi Section 3AA was added vide the Finance Act, 1997 (XXII of 1997)]
Earlier, Sub-section (5) [ which was added vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000) promulgated
on 24th May, 2000] was omitted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002, At
the time of omission Sub- section (5) was as under:--
“
(5) Not withstanding anything contained in this section, a retailer. irrespective of his turnover may, in
lieu of retail tax payable under sub-section (I), opt for payment of turnover tax under sub-section
(I) of section 3A and all provisions relating to collection and payment of turnover tax shall apply to
such person:”
Provided that an option exercised under this sub-section shall ipso facto expire on 30th
day of June 200 I, where-after such person shall charge and pay retail tax in terms of sub-section
(I):
Provided further that for the purpose of keeping record by a person opting to pay
turnover tax under this sub-section the provisions of section 22 shall apply”
225 Section 3AAA was omitted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002. At the
time of omission Section 3AAA was as under:--
3AAA-i
[3AAA Enlistment Tax.-(I) Subject to the provisions of this section, there shall be charged, levied and paid
enlistment tax at the rate of one per cent of the taxable turnover by a retailer who is making taxable supplies
in the course of furtherance of any taxable activity provided that total turnover of such retailer is, or exceeds,
one million rupees in any period during the last twelve months.
(2) Any retailer who intends to pay enlistment tax under sub-section (I) shall apply for enlistment to
the Collector in such form and manner as the Board may specify.
(3) Any retailer who is already registered or enrolled may opt to pay tax under this section provided
that he surrenders his registration certificate or as the case may be, enrolment certificate at the time
of applying for enlistment under sub-section (2)
(4) The provisions of this section shall stand repealed on 30th day of June, 2001]
[AAA-i Section 3AAA was inserted vide the Sales Tax (Amendment) Ordinance, 2000 (XLII of 2000), assented on 5th
September, 2000]
226 Section 3-A (Now 3B) was inserted vide Finance Act, 1994 (XII of 1994
227 Section “3A” renumbered as Section “3B” vide the Finance Act, 1996 (IX of 1996)
228 Substituted for sub-section (2) vide the Finance Act, 2014. At the time of substitution sub-section (2) was as under:--
“(2) Any amount payable to the Federal Government under sub-section (1) shall be deemed to be an arrear of tax
or charge payable under this Act and shall be recoverable accordingly and no claim for refund in respect of
such amount shall be admissible.”
229 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
230 The words “a supply of' was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
231 Clause (a) was substituted vide Finance Act, 1998 (III of 1998). At the time of substitution clause (a) was as under:--
4-i
[(a) goods exported or deemed to have been exported out of Pakistan- as specified in the Fifth Schedule];
[4-i The comma and words were added vide the Finance Act, 1996 (IX of 1996)]

[32]
 (b) supply of stores and provisions for consumption aboard a conveyance proceeding to a
destination outside Pakistan as specified in Section 24 of the Customs Act, 1969 (IV of
1969);
232
[(c) such other goods, as the Federal Government may specify by notification in the official
Gazette, whenever circumstances exist to take immediate action for the purposes of
national security, natural disaster, national food security in emergency situations and
implementation of bilateral and multilateral agreements:]
233
[***]
5. Change in the rate of tax.-234[***] If there is a change in the rate of tax-
(a) a taxable supply made 235[***] by a registered person shall be charged to tax at such rate
as is in force at the time of supply;
(b) imported goods shall be charged to tax at such rate as is in force,-
(i) in case the goods are entered for home consumption, on the date on which a
236
[goods declaration] is presented under Section 79 of the Customs Act, 1969
(IV of 1969);
(ii) in case the goods are cleared from warehouse, on the date on which a 237[goods
declaration] for clearance of such goods is presented under Section 104 of the
Customs Act, 1969 (IV of 1969):
Provided that where a 238[goods declaration] is presented in advance of the arrival
of the conveyance by which the goods are imported, the tax shall be charged as is in force
on the date on which the manifest of the conveyance is delivered:
Provided further that if the tax is not paid within seven days of the presenting of
the 239[goods declaration] 240[under section 104 of the Customs Act,] the tax shall be
charged at the rate as is in force- on the date on which tax is actually paid.

232 Clause (c) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution clause (c) was as under:-
“(C) such other goods as the Federal Government may, by Notification in the Official Gazette, specify:
Provided that nothing in this section shall apply in respect of a supply of goods which-
(i) are exported, but have been or are intended to be re-imported into Pakistan; or
(ii) have been entered for export under Section 131 of the Customs Act, 1969 (IV of 1969), but are not exported;
or
(iii) have been exported to a country specified by the Board with the approval of the Federal Minister-in-charge, by
Notification in the official Gazette
[Provided further that the Board with the approval of the Federal Minister-in-charge may, by a notification in the
official Gazette, restrict the amount of credit for input tax actually paid and claimed by a person making a zero rated
supply of goods otherwise chargeable to sales tax
233 Clause (d) was omitted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of omission
clause (d) was as under:-
“(d) such other goods as may be specified by the Federal Board of Revenue through a general order as are
supplied to a registered person or class of registered persons engaged in the manufacture and supply of goods
supplied at reduced rate of sales tax.”
234 The brackets and figure “(1)” were omitted vide the Finance Act, 1996 (IX of 1996)
235 The words “in Pakistan” was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
236 Substituted the words “bill of entry” vide the Finance Act, 2005 (VII of 2005) assented on 29th June, 2005
237 Substituted the words “bill of entry” vide the Finance Act, 2005 (VII of 2005) assented on 29th June, 2005
238 Substituted the words “bill of entry” vide the Finance Act, 2005 (VII of 2005) assented on 29th June, 2005
239 Substituted the words “bill of entry” vide the Finance Act, 2005 (VII of 2005) assented on 29th June, 2005
240 The words, figures and comma was inserted vide the Finance Act, 1996 (IX of 1996)

[33]
6. Time and manner of payment.-(1) The tax in respect of goods imported into Pakistan shall be
charged and paid in the same manner and at the same time as if it were a duty of customs payable under
the Customs Act, 1969 241[and the provisions of the said Act 242[including section 31A thereof,] shall, so
far as they relate to collection, payment and enforcement 243[including recovery] of tax under this Act on
such goods where no specific provision exists in this Act, apply-
244
[(1A) Notwithstanding anything contained in any other law for the time being in force,
including but not limited to the Protection of Economic Reforms Act, 1992 (XII of 1992), and
notwithstanding any decision or judgment of any forum, authority or court whether passed, before or after
the promulgation of the Finance Act, 1998 (III of 1998), the provisions of section 31-A of the Customs
Act, 1969 (IV of 1969), referred to in sub-section (1) shall be incorporated in and shall be deemed to have
always been so incorporated in this Act and no person shall be entitled to any exemption from or
adjustment of or refund of tax on account of the absence of such a provision in this Act, or in
consequence of any decision or judgment of any forum, authority or court passed on that ground or on the
basis of the doctrine of promissory estoppels or on account of any promise or commitment made or
understanding given whether in writing or otherwise, by any government department or authority.]
(2) The tax in respect of taxable supplies made 245[***] during a tax period shall be paid by
the registered person 246[by the date as prescribed in this respect] 247[:]
248
[Provided that the Board may, by a notification in the Official Gazette, direct that the tax in
respect of all or such classes of supplies (other than zero rated supplies) of all or such taxable goods, as
may be specified in the aforesaid notification, shall be charged, collected and paid in any other way,
mode, manner or at time as may be specified therein.]
249 250
[(3) The tax due on taxable supplies [***] shall be paid by any of the following modes,
namely:--
(i) through deposit in a bank designated by the Board; and
(ii) through such other mode and manner as may be specified by the Board.]
251
[***]
252
[(5) The Federal Government may, subject to such conditions, limitations and restrictions as it
may impose, by notification in the official Gazette, allow payment of sales tax on installments basis by

241 Substituted for (IV of 1969) vide the Finance Act, 1996 (IX of 1996)
242 The words, figure and letter inserted vide Finance Act, 1998 (III of 1998)
243 Inserted vide Finance Act, 2015
244 Sub-section (IA) was inserted vide the Sales Tax (Amendment) Ordinance, 2002 (XXV of 2002), assented on 6th June
2002. This amendment shall be deemed to have always been so inserted
245 The words “in Pakistan” was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
246 Substituted vide the Finance Act, 2016. At the time of substitution the words were as under:--
“at i[the time of] filing the return in. respect of that period under Chapter- V”
i The words “in Pakistan” omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
247 Replaced for the full stop vide the Finance Act, 1997 (XXII of 1997)
248 Proviso was added vide the Finance Act, 1997 (XXII of 1997)
249 Sub-section (3) was substituted vide the Finance Act, 1999 (IX of 1996). Sub-section (3) at the time of substitution was
as under:--
“(3) The tax due on taxable supplies made in Pakistan shall be paid by any of the following modes:--
(a) by way of adjustment in the account current which the registered person may maintain with the
Sales Tax Department for this purpose; or
(b) through deposit in an authorised bank: or
(c) such other mode as the Federal Government may specify.”
250 The words “made in Pakistan” was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
251 Sub-section (4) vide the Finance Act, 1996 (IX of 996). At the time of omission sub-section (4) was asunder:-
“(4) Where the payment is made through deposit in an authorised bank, the registered person shall enclose a copy
of the bank receipt with the return.”

[34]
the Federal or Provincial Governments or any public sector organization on import or supply of any
goods or class of goods:
Provided that such payment may be allowed from any previous date specified in the notification
under this sub-section.]
7. Determination of tax liability.-(1) 253[Subject to the provisions of 254[sections 8 and] 8B, for] the
purpose of determining his tax liability in respect of taxable supplies made during a tax period, a
registered person shall 255[subject to the provisions of section 73,] be entitled to deduct input tax 256[paid
257
[or payable] 258[during the tax period] for the purpose of taxable supplies made, or to be made, by him]
from the output tax 259[, excluding the amount of further tax under sub-section (1A) of section 3,] 260[***]
that is due from him in respect of that tax period and to make such other adjustments as are specified in
Section 9 261[:]
262
[Provided. that where a registered person did not deduct input tax within the relevant period, he
may claim such tax in the return for any of the six succeeding tax periods]
(2) A registered person shall not be entitled deduct input tax from output tax unless,--
(i) in case of a claim for input tax in respect of a taxable supply made 263[***], he holds a tax
invoice 264[in his name and bearing his registration number,] in respect of such supply
265
[, or in case of supply of electricity or gas, a bill bearing his registration number and
the address where the connection is installed] 266[:
Provided that from the date to be notified by the Board in this respect, in addition to
above, if the supplier has not declared such supply in his return or he has not paid amount
of tax due as indicated in his return;]
267
[(ii) in case of goods imported into Pakistan, he holds bill of entry or goods declaration in his
name and showing his sales tax registration number, duly cleared by the customs under
section 79 268[, section 81] or section 104 of the Customs Act, 1969 (IV of 1969);]

252 Added vide the Finance Act, 2022 dated on 30th June, 2022
253 Substituted the word “For” vide the Finance Act, 2007 (IV of2007), assented on 30th June, 2007
254 Substituted the word “section” vide the Finance Act, 2014
255 The commas, words and figure was inserted vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June,
2001
256 The words and commas were inserted vide the Finance Act, 1996 (IX of 1996)
257 The words were inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
258 The words were inserted vide Finance Act, 1998 (I of 1998)
259 Inserted vide the Finance Act, 2014
260 The words and commas 7-i[, excluding the amount of further tax,] was omitted vide the Finance Act, 2004 (II of 2004),
assented on 30th June, 2004
[7-i The commas and words were inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
261 Substituted for the full stop vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
262 Proviso substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008). At the time of substitution
Proviso was as under:--
7-ii
[Provided that the tax payer may adjust input tax paid on the purchases in the immediate 7-iii[twelve]
preceding tax periods from the output tax subject to the condition that the taxpayer specifies the reasons for such
delayed input tax adjustment in the revised sales tax return for such period or in the return for the immediately
succeeding tax period.]
[7-ii Proviso was added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[7-iii Substituted the word “three” vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005]
263 The word “in Pakistan” was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
264 The words were inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
265 Substituted the words “for which a return is furnished” vide the Finance Act, 2019 (V of 2019), assented on 30th June,
2019
266 Semi-colon stop was substituted with a “colon” and thereafter new proviso was added vide the Finance Act, 2016
267 Clause (ii) was substituted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003. At the time of
substitution Clause (ii) was as under:-

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 269 270
[(iii) in case of goods purchased in auction, he holds a treasury challan [, in his name and
bearing his registration number,] showing payment of sales tax;]
271
[***]
272
[(3) Notwithstanding anything in sub-sections (1) and (2), the 273[ 274[ 275[Board, with the
approval of the Federal Minister-in-charge,]]] may, by a special order, subject to such conditions
limitations or restrictions as may be specified therein allow a registered person to deduct input tax paid by
him from the output tax determined or to be determined as due from him under this Act.]
276
[(4) Notwithstanding anything contained in this Act or rules made there under, the 277[
278
[Federal Government]] may, by notification in the official Gazette, subject to such conditions,
limitations or restrictions as may be specified therein, allow a registered person or class of persons to
deduct such amount of input tax from the output tax as may be specified in the said notification.]
279
[(5) Notwithstanding anything contained in this Act or the rules made thereunder, the Board,
by notification in the official Gazette, may impose restrictions on wastage of material on which input tax
has been claimed in respect of the goods or class of goods.]
280
[7A. Levy and collection of tax on specified goods on value addition.-281[(1)] Notwithstanding
anything contained in this Act or the rules made there under, the 282[ 283[Federal Government]] may
specify, by notification in the official Gazette, that sales tax chargeable on the supply of goods of such
description or class shall, with such limitations or restrictions as may be prescribed, be levied and

“(ii) in case of goods imported into Pakistan, he holds the bill of entry duly cleared by the customs under Section
79 or Section 104 of the Customs Act, 1969 (IV of 1969);”
268 Inserted vide Finance Act, 2015
269 Clause (iii) was added vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002). Earlier a
different Clause (iii) was omitted vide the Finance Act, 1996 (IX of 1996). That Clause (iii) at the time of omission was
as under:-
“(iii) in case of purchase from a non-registered person of second-hand goods or such other goods as the Federal
Government may, by Notification in the official Gazette specify, he keeps the records as prescribed in
Section 22 7-iv[;]”
[7-iv Substituted for full stop vide Finance Act, 1994 (XII of 1994)]
270 The commas and words inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
271 Clause (iv) was omitted vide the Finance Act, 1997 (XXII of 1997). At the time of omission Clause (iv) was as under:-
“(iv) in case of taxed supply of goods by a registered importer, distributor or wholesaler not charging output tax
on the supply of such goods to another registered person who holds a replacement invoice indicating the
amount of tax paid at the stage of import or, supply by manufacturer.”
Earlier, the Clause (iv) was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution
Clause (iv) was as under:-
7-v
[(iv) in case of purchase of goods from a registered person making an exempt supply, he holds an invoice issued
by such person.]
[7-v Clause (iv) was added vide Finance Act, 1994 (XII of 1994)]
272 Sub-section (3) was added vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002
273 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
274 Substituted for the word “Board with the approval of the Federal Minister-in-charge” vide Finance Act, 2018, (XXX
of 2018) assented on 22nd May, 2018
275 Substituted the words “Federal Government” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
276 Sub-section (4) was added vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
277 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
278 Substituted for the word “Board with the approval of the Federal Minister-in-charge” vide Finance Act, 2018, (XXX
of 2018) assented on 22nd May, 2018
279 Added vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
280 Section 7A was inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
281 The existing provision shall be re-numbered as sub-section (I) vide the Finance Act, 2004 (II of 2004), assented on 30th
June, 2004
282 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
283 Substituted for the word “Board with the approval of the Federal Minister-in-charge” vide Finance Act, 2018, (XXX
of 2018) assented on 22nd May, 2018

[36]
collected on the difference between the value of supply for which the goods are acquired and the value of
supply for which the goods, either in the same state or on further manufacture, are supplied.]
284
[(2) Notwithstanding anything contained in this Act or the rules made thereunder, in respect
of the goods or class of goods specified in the Twelfth Schedule, the minimum value addition tax, against
the value added by the registered person, shall be payable, at the rate and by the registered persons or
class of registered persons, specified therein, subject to the conditions, limitations, restrictions and
procedure specified therein:
Provided that the Federal Government may, through a notification published in the official
Gazette, amend any provision of the said Twelfth Schedule.]
285
[8. Tax credit not allowed.-(1) notwithstanding anything contained in this Act, a registered person
shall not be entitled to reclaim or deduct input tax paid on
286
[(a) the goods 287[or services] used or to be used for any purpose other than 288
[***] for
taxable supplies made or to be made by him;]
(b) any other goods 289[or services] which the 290[ 291[Federal Government]] may, by a.
notification in the official Gazette, specify 292[; 293[***]]
294 295
[(c) [***] the goods under 296[sub-section] (5) of section 3 297[;]]
298
[(ca) the goods 299[or services] in respect of which sales tax has not been deposited in the
Government treasury by the respective supplier;]

284 Sub-section (2) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution Sub-section (2) was as under:-
“(2) Notwithstanding anything contained in this Act or the rules made there under, the Federal Government may,
by notification in the official Gazette, and subject to the 'conditions, limitations, restrictions and procedure mentioned
therein, specify the minimum value addition required to be declared by certain persons or categories of persons, for
supply of goods of such description, or class as may be prescribed, and to waive the requirement of audit or scrutiny of
records if such minimum value addition is declared.”
285 Section 8 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution Section 8 was as under--
“8 Tax credit not allowed.-(1) Notwithstanding any/other provision of this Act, a. registered person shall not be
entitled to reclaim input tax paid on--
(a) goods used for making exempt supplies under Section 13; and
(b) any other goods which the Federal Government may, by a Notification in the official Gazette,
specify.
(2) If a registered person deals in taxable and non-taxable supplies, he can reclaim only such
proportion of the input tax as is attributable to taxable supplies.”
286 Clause (a) was substituted vide the Sales Tax (Amendment) Ordinance, 2001 (VII of 2001), assented on 7th February,
20(1). At the time of substitution clause (a) was as under:--
“(a) the goods used or to be used for any purpose other than for-taxable supplies' made or to be made by him;”
287 The words “for the 'manufacture or production of taxable goods or was omitted vide the Finance Act, 2007 (IV of
2007), assented on 30th June, 2007
288 The words were inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
289 The words were inserted the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
290 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
291 Substituted for the word “Board with the approval of the Federal Minister-in-charge” vide Finance Act, 2018, (XXX
of 2018) assented on 22nd May, 2018
292 Substituted for the full stop vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
293 The word “and” was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
294 Clause (c) added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
295 The word “on” was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
296 Substituted for the words, brackets and figures “sub-sections (IA) and” vide the Finance Act, 2004 (II of 2004),
assented on 30th June, 2004
297 Substituted for the full stop vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
298 Clause (ca) inserted. vide the Finance Act, 2006 (Ill of 2006), assented on 30th June, 2006
299 The words inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008

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 300
[(caa) purchases, in respect of which a discrepancy is indicated by CREST or input tax of
which is not verifiable in the supply chain;]
301
[(d) fake invoices; 302[***]
(e) purchases made by such registered person, in case he fails to furnish the information
required by the Board through a notification issued under sub-section (5) of section 26
303
[;]]
304
[(f) goods and services not related to the taxable supplies made by the registered person;
(g) goods and services acquired for personal or non-business consumption;
(h) goods used in, or permanently attached to, immoveable property, such as building and
construction materials, paints, electrical and sanitary fittings, pipes, wires and cables, but
excluding 305[pre-fabricated buildings and] such goods acquired for sale or re-sale or for
direct use in the production or manufacture of taxable goods; 306[***]
(i) vehicles falling in Chapter 87 of the First Schedule to the Customs Act, 1969 (IV of
1969), parts of such vehicles, electrical and gas appliances, furniture, furnishings, office
equipment (excluding electronic cash registers), but excluding such goods acquired for
sale or re-sale 307[;
(j) services in respect of which input tax adjustment is barred under the respective provincial
sales tax law;
(k) import or purchase of agricultural machinery or equipment subject to sales tax at the rate
of 7% under Eighth Schedule to this Act; and
(l) from the date to be notified by the Board, such goods and services which, at the time of
filing of return by the buyer, have not been declared by the supplier in his return 308[or he
has not paid amount of tax due as indicated in his return; and]
309
[(m) the input goods 310[or services] attributable to supplies made to unregistered
311
[distributor] on pro-rata basis, for which sale invoices do not bear the NIC number or
NTN, as the case may be, of the recipient as stipulated in section 23.]
(2) If a registered person deals in taxable and non-taxable supplies, he can reclaim only such
proportion of the input tax as is attributable to taxable supplies in such manner as may be specified by the
Board
(3) No person other than a registered person shall make any deduction or reclaim input tax in
respect of taxable supplies made or to be made by him.
312
[***]]

300 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
301 Clauses (d) and (e) were added vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
302 The word “and” was omitted vide the Finance Act, 2014
303 Substituted for full stop vide the Finance Act, 2014
304 Added vide the Finance Act, 2014
305 Inserted vide Finance Act, 2015
306 The words “and” was omitted vide Finance Act, 2015
307 Semi-colon was substituted for full stop and thereafter new clauses were added vide Finance Act, 2015
308 Added vide the Finance Act, 2016
309 Clause (m) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution clause (m) was as under:-
“(m) import of scrap of compressors falling under PCT heading 7204.4940.”
310 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
311 Substituted the word “person” vide the Finance Act, 2022 dated on 30th June, 2022

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 313
[(5) Notwithstanding anything contained in any other law for the time being in force or any
decision of any Court, for the purposes of this section, no input tax credit shall be allowed to the persons
who paid fixed tax under any provisions of this Act as it existed at any time prior to the first day of
December, 1998.]
314
[(6) Notwithstanding anything contained in any other law for the time being in force or any
provision of this Act, the 315[Board, with the approval of the Federal Minister-in-charge,] may, by
notification in the official Gazette, specify any goods or class of goods which a registered 316[***] person
cannot supply to any person who is not registered 317[***] under this Act]
318
[***]
319
[8A. Joint and several liability of registered persons in supply chain where tax unpaid.-Where a
registered person receiving a taxable supply from another registered person is in the knowledge or has
reasonable grounds to suspect that some or all of the tax payable in respect of that supply or any previous
or subsequent supply of the goods supplied would go unpaid 320[, of which the burden to prove shall lie on
the department], such person as well as the person making the taxable supply shall be jointly and
severally liable for payment of such unpaid amount of tax 321[:]]
322
[Provided that the Board may by notification in the official gazette, exempt any transaction or
transactions from the provisions of this section.]
323
[8B. Adjustable input tax.-(1) Not withstanding anything contained in this Act, in relation to a tax
period, a registered person 324[ 325[***] ] shall not be allowed to adjust input tax in excess of ninety per
cent of the output tax for that tax period:

312 Sub-section (4) was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of
omission sub-section (4) was as under:--
“(4) No person engaged in taxable activity specified in 8-i[section 3A] shall make any deduction or reclaim input
tax, nor shall this tax be creditable as input tax for the taxable activity of any other registered person.”
[8-i Substituted for the words, brackets, figures, comma and letters “clause (d) of sub-section (2) of section 3 8-ii[,
section 3A and section 3AA)” vide Sales Tax (Amendment) Act, 1999 (I of 1999), effective from 1st December,
1999, and same amendment was made earlier by Sales Tax (Second Amendment) Ordinance, 1998 (XIV of
1998) effective from 1st December, 1998]
[8-ii Substituted for words, figures and letters “and section 3A” vide the Finance Act, 1997 (XXII of 1997]
313 Sub-section (5) was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
314 Sub-section (6) was added vide the Sales Tax (Amendment) Ordinance, 2001 (VII of 2001), assented on 7th February,
2001
315 Substituted the words “Federal Government” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
316 Sub-section (6) was added vide the Sales Tax (Amendment) Ordinance, 2001 (VII of 2001), assented on 7th February,
2001
317 The words “or enrolled” was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
318 Sub-section (7) was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of
omission sub-section (7) was as under:-
8-iii
[(7) Notwithstanding anything contained in any of the provisions of this Act, the Federal Government may, by
notification in the official Gazette, specify any goods or class of goods in respect of which the provisions of
section 3A shall not apply.]
[8-iii Sub-section (7) was added vide the Sales Tax (Amendment) Ordinance, 200I (VII of 200I), assented on 7th
February, 2001]
319 Section 5A was inserted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006
320 Inserted vide Finance Act, 2015
321 Substituted for the full stop vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
322 Proviso was substituted the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011. At the time of substitution it
was as under:--
“Provided that the tax charged on the acquisition of fixed assets shall be adjustable against the output tax in
twelve equal monthly installments 8A-i[***]
[8A-i The words “after the start of production of a new unit” were omitted vide the Finance Act, 2008 (1 of 2008),
assented on 26th June, 2008]
323 Section 8B was added vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007

[39]
 326
[Provided that the restriction on the adjustment of input tax in excess of ninety per cent of the,
output tax, shall not apply in case of fixed assets or capital goods:]
Provided further that the Board may, by notification in the official Gazette, exclude any person or
class of persons from the purview of sub-section (1)
(2) A registered person, subject to section (1), may be allowed adjustment 327[or refund] of
input tax not allowed under sub-section (1) subject to the following conditions, namely:--
(i) in the case of registered persons, whose accounts are subject to audit under the
Companies Ordinance, 1984, upon furnishing a statement along with annual audited
accounts, duly certified by the auditors, showing value additions less than the limit
prescribed under sub-section (1) above; or
(ii) in case of other registered persons, subject to the conditions and restrictions as may be
specified by the Board by notification in the official Gazette.
(3) The adjustment or refund of input tax mentioned in sub-section (2), if any, shall be made
on yearly basis in the second month following the end of the financial year of the registered person.
(4) Notwithstanding anything contained in sub-sections (1) and (2), the Board may, by
notification in the official Gazette, prescribe any other limit of input tax adjustment for any person-or
class of persons.
328
[In order to limit input tax allowance, the Board may also use data based automated risk
management system to defer certain input tax or fix higher or lower limits of input tax adjustment:
Provided that the registered person may contest the action taken under this sub-section by filing
application and documents with the Commissioner concerned, who shall decide the case within thirty
days of such application.]
329
[(4A) Notwithstanding anything contained in sub-sections (1), (2) and (3), input tax allowed in
case of locally manufactured electric vehicles subject to reduced rate of tax under the Eighth Schedule
shall be limited to the extent of amount of output tax and no refund or carry forward of excess input tax
shall be allowed.]
(5) Any auditor found guilty of misconduct in furnishing the, certificate mentioned' in sub-
section (2) shall be referred to the Council for disciplinary action under section 20D of Chartered
Accountants, Ordinance, 1961 (X of 1961).]
330
[(6) In case a Tier-1 retailer does not integrate his retail outlet in the manner as prescribed
under sub-section (9A) of section 3, during a tax period or part thereof, the adjustable input tax for whole
of that tax period shall be reduced by 331[60%].]

324 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
325 Omitted the words “other than public limited companies listed on Pakistan Stock Exchange” vide the Finance Act,
2022 dated on 30th June, 2022
326 Proviso was substituted vide the Finance Act, 2011 (XVI of 2011), assented on 29thJune, 2011. At the time of
substitution it was as under:--
“Provided that the tax charged on the acquisition of fixed assets shall be adjustable against the output tax in
twelve equal monthly installments 8B-i[***]”
[8B-i The words “after the start of production of a new unit” was omitted vide the Finance Act, 2008 (1 of 2008),
assented on 26th June, 2008]
327 The words inserted vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009
328 Added vide Finance Act, 2025 dated 29th June, 2005
329 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
330 Added vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
331 Substituted for the figure “15%” vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021

[40]
9. Debit and credit note.-Where a registered person has issued a tax invoice in respect of a supply
made by him and as a result of cancellation of supply or return of goods or a change in the nature of
supply or change in the value of the supply or some such event the amount shown in the tax invoice or the
return needs to be modified, the registered person may, subject to such conditions and limitations as the
Board may impose, issue a debit or credit note and make corresponding adjustment against output tax in
the return.
332
[10. Refund of input tax.-(1) If the input tax paid by a registered person on taxable purchases made
during a tax period exceeds the output tax on account of zero rated local supplies or export made during

332 Section 10 was substituted vide Finance Act, 2007 (IV of 2007), assented on 30th June, 2007. At the time of substitution
Section 10 was as under:--
“10 Excess amount to be 10-i[***] refunded.-(1) Subject to the provisions of sub-section (2), if in relation to a
tax period, the total deduction of input tax and other adjustments as specified in section 9. exceed the output tax, the
excess amount shall be 10-ii[refunded to the registered person];
[10-i The words “carried forward or” was omitted vide the Finance Act, 2005 (VII of 2005), assented on 29th
June, 2005]
[10-ii Substituted the words and commas “carried forward by the registered manufacturer, importer, wholesaler or
retailer to the next tax period and shall be treated as input tax for that tax period” by the Finance Act, 2005
(VII of 2005), assented on 29th June, 2005]
10-iii
[Provided that any excess amount of tax shall be refunded to the registered person subject to such
conditions, restrictions and limitations as the Board. may, by notification in the official Gazette. specify:
Provided further that the Board may, by notification in the official Gazette, restrict or regulate the amount of
refund claimed by a registered person as input tax credit to such extent and in such manner as it may specify therein.]”
[10-iii Proviso was substituted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005.] At the time of
substitution Proviso was as under:--
10-iv
[Provided that any excess amount of tax carried forward, from the previous tax period may be
refunded to the registered person subject to such conditions, restrictions and limitations as the Board, may by
notification in the official Gazette, specify:”
[10-iv Proviso was substituted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of
omission it was as under:--
“Provided that if the excess amount is not fully covered by the tax payable during a period of one
year following the tax period in which the credit first arose, the balance outstanding at the, end of that period
shall 10-v[unless otherwise directed by the Board under exceptional circumstances,] be refunded to the
registered person as may be prescribed:”
[10-v The commas and words were inserted vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th
June, 2001]
10-vi
[***]
[10-vi Proviso was omitted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005).] At the time of
omission Proviso was as under:-
“Provided further that the refund of tax charged on the acquisition of plant and machinery shall
also be admissible to the registered person who, at the time of taking delivery of taxable plant and
machinery, its components and spare parts is not making taxable supplies, subject to the condition that he
shall, within the period specified by the Board, by notification in the official Gazette, commence taxable
supplies and complies with such other conditions as are specified therein.”
(2) Notwithstanding anything contained in sub-section (I). the input tax incurred 10-vii[***] shall be
refunded not later than thirty days err filling-of return in such manner and subject to such
conditions as the Board may, by notification in the Official Gazette, specify.
[10-vii The words “in connection with a zero rated supply” was omitted vide the Finance Act, 2006 (11 of 2006),
assented on 30th June, 2006]
(3) If a registered person is liable to pay any tax, 10-viii[default surcharge] or penalty payable under
any law administered by the Board, the refund of input tax shall be made after adjustment of
unpaid outstanding amount of tax or, as the case may, 10-viii[default surcharge] and penalty.
[10-viii Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005]
(4) Where there is reason to believe that a person has claimed input tax credit or refund which was not
admissible to him, the provisions regarding time limit shall not apply to the investigation, including
the verification of the deposit of tax claimed as refund, is completed and the claim is either
accepted or rejected.)”

[41]
Earlier, the Section 10 was substituted vide Finance Act, 1998 (III of 1998). At the time of substitution Section 10 was
as under:--
“10 Refund Of excess amount of input tax.-(l) Subject to the provisions of sub-section (2) if in relation
to a tax period the total deduction of input tax and other adjustments specified in section 9 exceed
the amount of output tax, the excess amount outstanding at the end of that period shall be refunded
to the registered person within 10-ix[ninety] days of filing of tax return subject to such conditions as
may be specified by the Board:
[10-ix Substituted the word “thirty” vide the Finance Act, 1997 (XXII of 1997)]
Provided that the refund shall also be admissible to the registered person who, at the
time of taking delivery of taxable plant and machinery, its components and spare parts is not
making taxable supplies subject to the condition that he shall, within the period specified by the
Board by notification in the Official Gazette, commence taxable-supplies and complies with such
other conditions as are specified therein.
10-x
[Provided further that the Board may, by notification in the Official Gazette, restrict
or regulate the amount of refund claimed by a person as input tax credit to such extent and in such
manner as it may specify therein.]
[10-x Proviso added vide the Finance Act, 1997 (XXII of 1997)]
(2) Notwithstanding anything contained in sub-section (I), the input tax incurred in
connection with a zero rated supply shall be refunded not later than thirty days of filing
of return in such manner and subject to such conditions as the Board may, by notification
in the Official Gazette. specify:
Provided that those zero-rated suppliers who prefer to claim refund of sales tax
along with customs-duty by making applications to the exporting customs station may
continue to claim refund in that manner till such time any other procedure is notified by
the Board.
(3) If a registered person is liable to pay any tax, additional tax or penalty payable under
any statute administered by the Board, the refund of input tax shall be made after
adjustment of unpaid Outstanding amount of tax or, as the case may, additional tax and
penalty.
(4) Where there is reason to believe that a person has claimed input tax credit or refund
which is not admissible to him, the provisions regarding his entitlement to credit or
refund and the 10-xi[aforesaid time limits shall not apply till the investigation, including
the verification of the deposit of tax, claimed as input tax credit] is completed and the
claim is either accepted or rejected.
[10-xi Substituted the words and commas “time limits of thirty days shall not apply till the investigation vide the
Finance Act, 1997 (XXII of 1997)]
(5) For the purpose of claiming refund of input tax, the provisions of this section shall come
into force from the first day of August, 1996:
Provided that the tax returns for the month of June, 1996, shall be dealt with in
accordance with the existing provisions]
Initially, section 10 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of
substitution section 10 was as under:--
“10 Excess amount to be carried forward.-(1) Subject to the provisions of sub- section (2), if in
relation to a tax period the total deduction of input tax and other adjustments as specified in
Section 9 exceed the output tax, the excess amount shall be carried forward by the registered
person to the next tax period and shall be treated as input tax for that tax period:
Provided that if the excess amount is not fully covered by the tax payable during a period
of six months following the tax period in which the credit first arose, the balance outstanding at the
end of that period shall be refunded to the registered person as may be prescribed:
10-xii
[Provided further that the tax charged on the acquisition of plant and machinery,
spare parts of plant and machinery and machine tools shall be immediately adjustable against the
output tax, and if the tax amount is not fully covered by the tax payable during a period of two
months including the tax period in which the credit first arose, the balance outstanding at the end
of that period shall be refunded to the registered person on filing of an application for such refund:
Provided further that this refund shall also be admissible to registered persons who at the
time of taking delivery of taxable plant and machinery are not making taxable supplies and
therefore cannot adjust the taxed amount against the output tax.Such registered persons shall file a
refund application after two months of the tax period in which the credit first arose:
Provided further that the refund as aforesaid shall be subject to the condition that the
registered person starts making taxable supplies within two years of the receipt of refund amount

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that tax period, the excess amount of input tax shall be refunded to the registered person not later than
forty-five days of filing of refund claim in such manner and subject to such conditions as the Board may,
by notification in the official Gazette specify:
333
[Provided that in case of excess input tax against supplies other than zero-rated or exports, such
excess input tax may be carried forward to the next tax period, along with the input tax as is not
adjustable in terms of sub-section (1) of section 8B, and shall be treated as input tax for that period and
the Board may, subject to such conditions and restrictions as it may impose, by notification in the official
Gazette, prescribe the procedure for refund of such excess input tax;]
Provided further that the Board may, from such date and subject to such conditions and
restrictions as it may impose, by notification in the official Gazette, direct that refund of input tax against
exports shall be paid 334[at the fixed rates and in the manner as] notified in such notification
(2) If a registered person is liable to pay any tax, default surcharge or penalty payable under
any law administered by the Board, the refund of input tax shall be made after adjustment of unpaid
outstanding amount of tax or, as the case may, default surcharge and penalty.
(3) Where there is reason to believe that a person has claimed input tax credit or refund
which was not admissible to him, the proceedings against him shall be completed within sixty days. For
the purposes of enquiry or audit or investigation regarding admissibility of the refund claim, the period of
sixty days may be extended up to one hundred and twenty days by an officer not below the rank of an
Additional 335[Commissioner Inland Revenue] and the-Board may, for- reasons to be recorded in writing,
extend the aforesaid period which shall in no case exceed nine months.]
336
[***]

failing which the entire amount shall be recovered along with surcharge at the rate of twenty per
cent per annum till the time the amount is actually paid to the Federal Government.]
[10-xii Second and Third provisos substituted vide the Sales Tax (Amendment) Ordinance, 1996. Second and third
provisos at the time of substitution were as under:--
“Provided further that the tax charged on the acquisition of plant and machinery shall be
adjustable against' the output tax in 10-xiii[sixty equal monthly installment 10-xiv[:]]
10-xv
[Provided also that the tax charged on or after the 1st July, 1994, on the acquisition of
plant and machinery, spare parts of plant and machinery and the machine tools shall be adjustable
against the output tax in twenty-five equal monthly installments”
[10-xiii Substituted for “five equal yearly installments in such manner that none of the installment exceeds twenty per
cent of the total input tax” vide Finance Act, 1991]
[10-xiv Substituted for full stop vide Finance Act, 1994 (XII of 1994)]
[10-xv Proviso added by Finance Act, 1994 (XII of 1994)]
(2) In case of exports the amount of input tax not covered by the output tax shall be refunded to the
exporter in such manner as the Board may 10-xvi[determine].”
[10-xvi Substituted for “prescribe” vide Finance Act, 1991]
333 Proviso substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of substitution
Proviso was as under:--
“Provided that the Board may, subject to such conditions and restrictions as it may impose, by notification in
the official Gazette, prescribe the procedure for refund of excess input tax against other taxable supplies:”
334 Substituted the words “along with duty drawback at the rates” vide the Finance Act, 2019 (V of 2019), assented on 30th
June, 2019
335 Substituted the words “collector of Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010
effective from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010
(III of 2010) promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009)
promulgated on 28th October, 2009
336 Section 11 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission section 11
was as under:-
“11. Assessment of Tax and recovery of tax not levied of short-levied or erroneously refunded.-(1) Where a
person who is required to file a tax return fails to file the return for a tax period by the due date or pays an amount
which, for some miscalculation is less than the amount of tax actually payable, an officer of Inland Revenue shall, after

[43]
337
[11A. Short paid amounts recoverable without notice.-Notwithstanding any of the provisions of this
Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the
short paid amount of tax along with default surcharge shall be recovered from such person by stopping
removal of any goods from his business premises and through attachment of his business bank accounts,
without giving him a show cause notice and without prejudice to any other action prescribed under
section 48 of this Act or the rules made there under:
Provided that no penalty under section 33 of this Act shall be imposed unless a show cause notice
is given to such person.]

a notice to show cause to such person, make, an order for assessment of tax, including imposition of penalty am default
surcharge in accordance with sections 33 and 34:
Provided that where a person required to file a tax return files the return after the due date and pays the amount of the
payable in accordance with the tax return along with default surcharge and penalty, the notice to show cause and the
order assessment shall abate.
(2) Where a person has not paid the tax due on supplier made by him or has made short payment or has claimed
input to credit or refund which is not admissible under. this Act for reason: other than those specified in sub-section (1),
an officer of Inland Revenue shall, after a notice to show cause to such person, make an order for assessment of tax
actually payable by that person determine the amount of tax credit or tax refund which he has unlawfully claimed and
shall impose a penalty and charge default surcharge in accordance with sections 33 and 34.
(3) Where by reason of some collusion or a deliberate act any tax or charge has not been levied or made or has
been short-levied or has been erroneously refunded, the person liable pay any amount of tax or charge or the amount of
refund erroneously made shall be served with a notice requiring him to show cause for payment of the amount specified
in the notice.
(4) Where, by reason of any inadvertence, error misconstruction, any tax or charge has not been levied or made 0
has been short-levied or has been erroneously refunded, the person liable to pay the amount of tax or charge or the
amount of refund erroneously made shall be served with a notice requiting him to show cause for payment of the
amount specified in the notice:
Provided that, where a tax or charge has not been levied under this sub-section, the amount of tax shall be recovered as
tax fraction of the value of supply.
(4A) Where any person, required to withhold sales tax under the provisions of this Act or the rules made
thereunder, fails to withhold the tax or withholds the same but fails to deposit the same in the prescribed manner, an
officer of Inland Revenue shall after a notice to such person to show cause, determine the amount in default.
(5) No order under this section shall be made by an officer of Inland Revenue unless a 'notice to show cause is
given within five years, of the end of the financial year in which the relevant date falls to the person in default
specifying the grounds on which it is intended to proceed against him and the officer of Sales Tax shall take 'into
consideration the representation made by such person and 'provide him with an ' opportunity of being heard:
Provided that order under this section shall be made within one hundred and twenty days of issuance of show cause
notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, fix provided that
such extended period shall in no case exceed ninety days:
Provided further that any period during 'which the proceedings are adjourned on account of a stay order or Alternative
Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding sixty days shall
be excluded from the computation of the period specified in the first proviso
(6) Notwithstanding anything contained in sub-section (1), where a registered person fails to file a return, an
officer of Inland Revenue not below the rank of Assistant Commissioner, shall subject to such conditions as specified
by the Federal Board of Revenue, determine the minimum tax liability of the registered person.
(7) For the purpose of this section, the expression “relevant date” means--
(a) the time of payment of tax or charge as provided under section 6; and
(b) in a case where tax or charge has been erroneously refunded, the date of its refund.”
337 Section 11-A was substituted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006. At the time of
substitution Section 11A was as under:--
11A-i
[11-A. Short-paid amounts recoverable without notice.-Notwithstanding any of the provisions of this Act, where
a registered 11A-ii[person pays the amount of tax less than the due tax as indicated in his return, the short-paid
amount of tax shall be recovered without giving a show cause notice to such person provided that no 11A-
iii
[default surcharge ] or penalty shall be charged unless a show cause notice is given to such person.]
[11A-i Section II A was inserted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June,
2002]
[11A-ii The words “or enrolled” was omitted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005]
[11A-iiii Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005]

[44]
338
[11B. Limitation for issuing orders in certain cases.-For the purposes of issuing an assessment order
or any other order in consequence of or to give effect to any order made by the Commissioner (Appeals),
Appellate Tribunal, High Court, or Supreme Court, the provisions of section 124 of the Income Tax
Ordinance, 2001 (XLIX of 2001) shall apply mutatis mutandis.]
339
[11C. Power of tax authorities to modify orders, etc.-(1) Where a question of law has been decided
by a High Court or the Appellate Tribunal in the case of a registered person, on or after first day of July,
1990, the Commissioner or an officer of Inland Revenue may, notwithstanding that he has preferred an
appeal against the decision of the High Court or made an application for reference against the order of the
Appellate Tribunal, as the case may be, follow the said decision in the case of the said taxpayer in so far
as it applies to said question of law arising in any assessment pending before the Commissioner or an
officer of Inland Revenue, until the decision of the High Court or of the Appellate Tribunal is reversed or
modified.
(2) In case the decision of High Court or the Appellate Tribunal, referred to in sub-section
(1), is reversed or modified, the Commissioner or an officer of Inland Revenue may, notwithstanding the
expiry of period of limitation prescribed for making any assessment or order, within a period of one year
from the date of receipt of decision, modify the assessment or order in which the said decision was
applied so that it conforms to the final decision.]
340
[11D. Best judgment Assessment.-(1) Where a person,
(a) fails to furnish a sales tax return in response to notice under sub-section (2A) of section
26; or
(b) fails to produce before the officer of Inland Revenue not below the rank of Assistant
Commissioner under sections 25 or 38A, accounts, documents and records required, or
any other relevant document or evidence that may be required by him, the officer of
Inland Revenue not below the rank of Assistant Commissioner may, after a notice to
show cause to such person, based on any available information or material and to the best
of his judgment, make an assessment of tax payable or refund due and also charge
penalty and default surcharge.
(2) For the purposes of clause (b) of sub-section (1), the officer of Inland Revenue may also
disallow or reduce a registered person input tax on goods if the registered person is unable, to provide
invoice or other record or evidence of the transaction or circumstances giving rise to such claim.
(3) Where a best judgment assessment has been made due to default of clause (a) of sub-
section (1) and the person files the return within sixty days of issuance of order under this section

338 Section 11B was substituted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of substitution
section 11B was as under:-
“11B. Assessment giving effect to an order.-(1) Except where sub-section (2) applies, where, in consequence of, or to
give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals),
Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person,
the Commissioner or an officer of Inland Revenue empowered in this behalf shall issue the order within one year from
the end of the financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or
Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.
(2) Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an
order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of
Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner
(Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of
the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may
be, is served with the order:
Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred
against the order passed by Appellate Tribunal or a High Court.”
339 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
340 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

[45]
thereafter and pays the amount of tax payable along with default surcharge and penalty, the notice to
show cause and the order of assessment shall abate.
(4) Notwithstanding anything in sub-section (1), where the Federal Board of Revenue has
specified conditions for the purpose of determination of minimum tax liability in respect of a person who
is required to file return but who fails to file such return, the Officer of Inland Revenue shall determine
such liability of the registered person in accordance thereof.
341
[(5) Notwithstanding anything contained in this section, in case of person who is liable to be
registered under clause (25) of section 2 based on tax withheld under section 236G of Income Tax
Ordinance, 2001 (XLIX of 2001) and does not furnish a return upon notice, an officer of inland revenue
may assess sales tax liability on the value addition on reasonable grounds including information obtained
from the purchase data under section 236G of Income Tax Ordinance, 2001 (XLIX of 2001).]
11E. Assessment of tax and recovery of tax not levied or short levied or erroneously refunded.-
342
[(1) Where due to any reason, any tax or charge has not been levied or short levied or where the
officer of Inland Revenue not below the rank of Assistant Commissioner suspects on the basis of audit or
otherwise that due to any reason a person has-
(a) not paid or short paid due sales tax;
(b) claimed input tax credit or refund which is not admissible; or
(c) has obtained an amount of refund not due,
the officer of Inland Revenue after issuing a show cause notice to the person shall pass an order to
determine and recover the amount of tax unpaid or short paid, inadmissible input tax or refund, or
unlawful refund obtained and shall also impose penalty and default surcharge in accordance with
sections 33 and 34:
Provided that this section shall not be applicable to the extent of proceedings initiated under
section 37A of the Act.
(2) For the purposes of sub-section (1), the officer of Inland Revenue may also disallow
input tax on goods or services if the taxpayer is unable, without reasonable cause, to provide a receipt, or
invoice or other record or evidence of the transaction or circumstances giving rise to such claim.
(3) Where a tax or charge has not been levied under clause (a) of sub-section (1), the amount
of tax shall be recovered as tax fraction of the value of supply.
11F. Failure to withhold sales tax.-Where any person, required to withhold sales tax under sub-
section (7) of section 3, fails to withhold the tax or having withheld the tax fails to deposit the same in the
prescribed manner, the officer of Inland Revenue not below the rank of Assistant Commissioner shall
after a notice to such person to show cause pass an order to determine and recover the amount in default
and impose penalty and default surcharge under section 33 and 34.

341 Added vide Finance Act, 2025 dated 29th June, 2005
342
Sub-aection (1) was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Sub-aection
(1) was as under:-
“(1) Where due to any reason, including by way of collusion or a deliberate act, any tax or charge has not been
levied or short levied or where the officer of Inland Revenue not below the rank of Assistant Commissioner suspects on
the basis of audit or otherwise that due to any reason a person has-
(a) not paid or short paid due sales tax;
(b) claimed input tax credit or refund which is not admissible; or
(c) has obtained an amount of refund not due,
the officer of Inland Revenue after issuing a show cause notice to the person shall pass an order to determine and
recover the amount of tax unpaid or short paid, inadmissible input tax or refund, or unlawful refund obtained and shall
also impose penalty and default surcharge in accordance with sections 33 and 34.”

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11G. Limitation for assessment.-(1) The show cause notice under sections 11D to 11F shall be issued
within five years, from the end of the financial year in which the relevant date falls.
(2) An order under sections 11D, 11E and 11F shall be made within one hundred and
343
[eighty days] of issuance of show cause notice or within such extended period as the Commissioner
may, for reasons to be recorded, in writing specify, provided that such extended period shall in no case
exceed from ninety days:
Provided that any period during which the proceedings are adjourned on account of a stay order
or Alternative Dispute Resolution proceedings or the time taken through adjournment by the registered
person not exceeding sixty days shall be excluded from the computation of the period specified in this
sub-section.
(3) For the purpose of sections 11D, 11E and 11F, the words “relevant date” means-
(a) the time of payment of sales tax or charge as provided under section 6;
(b) the time of payment for goods or services on which sales tax was to be withheld under
sub-section (7) of section 3; and
(c) in a case where sales tax or charge has been erroneously refunded, the date of its refund.]
344
[***]
345
[13. Exemption.-(1) Notwithstanding the provisions of section 3, supply of goods or import of goods
specified in the Sixth Schedule shall, subject to such conditions as may be specified by the 346[Federal
Government], be exempt from tax under this Act 347[.]
348
[***]

343 Substituted the words “twenty days” vide the Finance Act, 2025, dated 29th June, 2025
344 Section 12 was omitted vide the Finance Act, 1996 (IX of 1996). At the time of omission of section 12 was as under:--
“12 Appeal against assessment order.-A registered person not satisfied with the assessment made under Section
II may. within fourteen days of the communication of the assessment order, file an appeal specifying in
writing the grounds of objection against the assessment before an officer of Sales Tax next above the officer
who made the assessment 12-i[:]
12-ii
[***]
[12-i Substituted for “colon” vide the Finance Act, 1991]
[12-ii Proviso omitted vide the Finance Act, 1991. Proviso at the time of omission was as under:--
“Provided that where an assessment is made by the Collector, there shall be no right of appeal.”
345 Section 13 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution of Section 13 was as
under:--
“13. Exemption.-(1) The Federal Government may, by Notification in the official Gazette, exempt any taxable
supplies made by a registered person in Pakistan or any goods or class of goods, from the whole or any pan of
the tax chargeable under this Act, subject to such conditions and limitations as may be specified.
(2) The Board may, by special order in each case stating the reasons, exempt any supply from the
payment of the whole or any pan of the tax chargeable under this Act.
13-i
[(3) The exemption from tax chargeable under this Act may be allowed from any previous date
specified in the notification issued under sub-section (I) or, as the case may be, order made under sub-section
(2).]
[13-i Sub-section (3) was added vide the Finance Act, 1992]
346 Substituted the word “Board” vide the Sales Tax (Amendment) Ordinance, 1999 (XII of 1999) promulgated on 13th
August, 1999
347 Substituted for the colon vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000) promulgated on 24th May,
2000). Earlier the colon was substituted for the full stop vide the Sales Tax (Amendment) Ordinance, 1999 (XII of
1999) promulgated on 13th August, 1999
348 Provisos was omitted vide the Tax laws Amendment Ordinance, 2000 (XVI of 2000) promulgated on 24thMay, 2000. At
the time of omission the provisos were as under:--
13-ii
[Provided that the Federal Government may, by notification in the official Gazette, withdraw any
exemption granted under the Sixth Schedule to the extent specified in the notification:

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 349
[(2) Notwithstanding the provisions of sub-section (1)-
350
[(a) the Federal Government may, whenever circumstances exist to take immediate action for
the purposes of national security, natural disaster, national food security in emergency
situations and implementation of bilateral and multilateral agreements, by notification in
the official Gazette, exempt anysupplies made or imports, of any goods or class of goods
from the whole or any part of the tax chargeable under this Act, subject to the conditions
and limitations specified therein;]
351
[***]
(3) The exemption from tax chargeable under sub-section (2) may be allowed from any
previous date specified in the notification issued under clause (a) 352[***].]
353
[***]
354
[***]

Provided further that the aforesaid power to withdraw an exemption shall not be construed to include the
power to revive or to restore the exemption so withdrawn]
[13-ii Provisos was added vide the Sales Tax (Amendment) Ordinance, 1999 (XII of 1999) promulgated on 13th
August, 1999]
349 Sub-sections (2) & (3) was added vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000), promulgated on 24th
May, 2000). Earlier Sub- sections (2) and (3) were omitted vide Sales Tax (Amendment) Act, 1999 (I of 1999), effective
from 1st December. 1999 and the same amendment was made earlier vide the Sales Tax (Second Amendment)
Ordinance.1998 (XIV of 1998).effective from 1st December, 1998. At the time of omission sub- sections (2) and (3)
were as under:-
“(2) Notwithstanding the provisions of sub-section (1):--
(a) the Federal Government may, by notification in the official Gazette, exempt any taxable supplies
made in Pakistan or any goods or class of goods, from the whole or any part of the tax chargeable
under this Act, subject to the conditions and limitations specified therein; and
(b) the Board may, by special order in each case stating the reasons, exempt any supply from the
payment of the whole or any part of the tax chargeable under this Act.
(3) The exemption from tax chargeable under sub-section (2) may be allowed from any previous date specified in
the notification issued under clause (a) or, as the case may be, order made under clause (b) of that sub-section.”
350 Clause (a) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
substitution clause (a) was as under:-
“(a) the Federal Government may], whenever circumstances exist to take immediate action for the purposes of
national security, natural disaster, national food security in emergency situations, protection of national
economic interests in situations arising out of abnormal fluctuation in international commodity prices,
removal of anomalies in taxes, development of backward areas, implementation of bilateral and multilateral
agreements and matters relating to international financial institutions or foreign government-owned financial
institutions, by notification in the official Gazette, exempt any taxable supplies made or import or supply of
any goods or class of goods, from the whole or any part of the tax chargeable under this Act, subject to the
conditions and limitations specified therein;
351 Clause (b) was omitted vide Finance Act, 2015. At the time of omission Sub-section (b) was as under:--
(b) the Board may, by special order in each case stating the reasons, exempt any [import or supply of goods of
such description or class, as may be specified] from the payment of the whole or any part of the tax
chargeable under this Act.
352 The Expression “or, as the case may be, order made under clause (b) of that sub-section” was omitted vide Finance
Act, 2015
353 Sub-section (4) was omitted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006. At the time of
omission Sub-section (4) was as under:--
“(4) Where a person does not desire to avail any tax exemption, he may, after voluntary registration, opt to pay
sales tax at the rate applicable to such supplies under the provisions of section 3 13-iii[***] subject to condition
that he shall not thereafter be deregistered till the expiry of two years from the date of such registration.”
[13-iii The commas, words, brackets and figure “, other than fixed tax specified in clause (d) of sub-section (2) of
that section,” were omitted vide Sales Tax (Amendment) Act, 1999 (I of 1999), effective from 1st December, 1999, and
the same amendment was made earlier vide Sales Tax (Second Amendment) Ordinance, 1998 (XIV of 1998). effective
from 1st December, 1998]

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 355
[(6) The 356[Board with the approval of the Federal Minister-in-charge] shall place before the
National Assembly all notifications issued under this section in a financial year.
(7) Any notification issued under sub-section (2), after the 1st July, 2015 shall, if not earlier
rescinded, stand rescinded on the expiry of the financial year in which it was issued] 357[:]
358
[Provided that all such notifications, except those earlier rescinded, shall be deemed to have
been in force with effect from the 1st July, 2016 and shall continue to be in force till the 30th June, 2018,
if not earlier rescinded:
Provided further that all notifications issued on or after the first day of July, 2016 and placed
before the National Assembly as required under sub-section (6) shall continue to be in force till thirtieth
day of June, 2018, if not earlier rescinded by the Federal Government or the National Assembly.]

CHAPTER - III
REGISTRATION
359
[14. Registration.-(1) Every person engaged in making taxable supplies in Pakistan. Including zero
rated supplies in the course or furtherance of any taxable activity carried on by him, failing in any of the
following categories, if not already registered, is required to be registered under this Act, namely:--

354 Sub-section (5) was omitted vide the Sales Tax (Amendment) Ordinance, 2000 (XLII of 2000), assented on 5th
September, 2000). At the time of omission Sub-section (5) was as under:--
“(5) Notwithstanding the omission of sub-section (2), the Federal Government may, by notification in the official
Gazette, rescind a notification issued by it or by the Board under sub-section (2) prior to the first day of
December. 1998.”
Earlier, Sub-section (5) was added vide Sales Tax (Amendment) Act, 1999 (1 of 1999), effective from 1st December,
1999. Earlier a different sub-section (5) was added vide Sales Tax (Second Amendment) Ordinance, 1998 (XIV of
1998), effective from 1st December, 1998, which is as under:-
“(5) Notwithstanding the omission of sub-section (2), the Federal Government may, by notification in
the official Gazette, rescind the whole or modify an) part of a notification issued by it or by the
Board under sub-section (2) prior tc the first day of December, 1998.”
355 Added vide Finance Act, 2015
356 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
357 Substituted for the ‘.’ vide the Finance Act, 2017 assented on 19th June, 2017
358 Added vide the Finance Act, 2017 assented on 19th June, 2017
359 Section 14 was Substituted vide Finance Act, 2015. At the time of substitution Section 14 was as under:-
14-i
[14 Registration.-Under this Act, registration will be required for such persons and be regulated in such manner
and subject to rules as the Board may, by notification in the official Gazette, prescribe.]
[14-i Section 14 was substituted vide the Finance Act, 2004 (11 of 2004), assented on 30th June 2004.] At the time
of substitution Section 14 whereas under:--
“14 Requirement of Registration.-–(1) The following persons engaged in making of taxable supplies
in Pakistan (including zero-rated supplies) in the course of furtherance of any taxable activity
carried on by them, if not already registered are required to be registered under this Act, namely-
(i) a manufacture who annual turnover from taxable supplies made in any period during the
last twelve months ending any tax period exceeds 14-ii[two and half ] million rupees.”
[14-ii Substituted the word “one” vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
(ii) a retailer whose value of supplies in any period during the last twelve months ending any tax
period exceeds 14-iii[twenty] million rupees;
[14-iii Substituted the word “five” vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
(iii) an importer and
(iv) wholesale (including dealer)and distributor
Provided that buyers or importers of taxable plant and machinery who intend to make taxable
supplies in due course and wish to claim any credit or refund of tax paid on the said plant and machinery
shall also be required to be registered under this Act.”
Earlier, the Section 14 was substituted vide Finance Act, 1998 (III of 1998). At the time of substitution Section 14 was
as under:-
“14 Requirement of Registration.- Every person who makes a taxable supply in Pakistan (including a
zero-rated supply) in the course or furtherance of any taxable activity carried on by him and whose
total turnover from taxable supplies made in any period during the last twelve months ending any

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 (a) a manufacturer who is not running a cottage industry;
(b) a retailer who is liable to pay sales tax under the Act or rules made there under excluding
such retailer required to pay sales tax through his electricity bill under sub-section (9) of
section 3;
(c) an importer;
(d) an exporter who intends to obtain sales tax refund against his zero-rated supplies;
(e) a wholesaler, dealer or distributor; and
(f) a person who is required, under any other Federal law or Provincial law, to be registered
for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be
collected under the Act;
360
[(1A) Every person including a non-resident person except who is running a cottage industry
and the retailers who are required to pay sales tax through electricity bills under sub-section (9) of section
3, selling digitally ordered goods from within Pakistan through online marketplace, website or software
application as the case may be, shall apply in the prescribed form and in the prescribed manner for
registration.
(1B) Every online marketplace or a courier, involved in e-commerce by supplying digitally
ordered goods from within Pakistan shall not allow any person to use their services to carry out e-
commerce transactions unless it holds NTN and in case sub-section (1A) of this section applies also holds
sales tax registration.]
(2) Persons not engaged in making of taxable supplies in Pakistan, if required to be
registered for making imports or exports, or under any provisions of the Act, or any other Federal law,
may apply for registration.

tax period exceeds rupees one million, if not already registered, is required to be registered under
this Act:
Provided that buyers or importers of taxable plant and machinery who intend to make
taxable supplies in due course and wish to claim an) credit or refund of tax paid on the said plant
and machinery shall also be required to be registered under this Act:
Provided further that the exporters who are not engaged in the manufacture of goods shall
be exempt from the requirement of registration till such time this exemption is withdrawn by the
Board, by notification in the official Gazette.”
Initially, Section 14 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution it was as
under:--
“14 Requirement of Registration.-(l) Every person who makes a taxable supply in Pakistan including
a zero-rated supply) shall get himself registered under this Act 14-iv[:]
14-v
[provided that the Federal Government may, by notification in the official Gazette,
also require any person making exempt supplies to get himself registered under this Act 14.vi[:]]
14-vii
[Provide further that buyers or Importers of taxable plant machinery who intend to
make taxable supplies in due course and wish to claim adjustment of tax paid on the said plant and
machinery shall also gel themselves registered under this Act.]
(2) Notwithstanding the provisions of sub-section (I), the Federal Government may, with
reference to the nature of business activity, annual turnover of capital employed in
business exempt any person or class of persons from the requirement of registration
under this Act subject to such conditions which the Federal Government may by a
Notification in the official Gazette, specify.”
[14-iv Substituted for “full stop” vide Finance Act, 1993]
[14-v Proviso added vide Finance Act, 1993]
[14-vi Substituted for “full stop” vide the Sales Tax (Amendment) Ordinance, 1996, effective from 7th March, 1996]
[14-vii Proviso added vide Sales Tax (Amendment) Ordinance, 1996, effective from 7th March, 1996]
360 Inserted vide Finance Act, 2025 dated 29th June, 2005

[50]
 361
[(2A) If a person, who is required to be registered under the Act, does not apply for registration
and the Commissioner Inland Revenue or any other officer, as may be authorized by the Board, after such
inquiry as deemed appropriate, having reason to believe that a person is liable to register, he shall
compulsorily register such person after providing an opportunity of being heard.]
(3) The registration under this Act shall be regulated in such manner as the Board may, by
notification in the official Gazette, prescribe.]
362
[14A. Discontinuance of gas and electricity connections.-Notwithstanding anything contained in this
Act or any other law for the time being in force, the Board shall have power through sales tax general
order to direct the gas and electricity distribution companies for discontinuing the gas and electricity
connections of any person who falls in the following categories, namely:-
(a) any person, including tier-1 retailers, who fails to register for sales tax purpose, or
(b) notified tier-1 retailers registered but not integrated with the Board's computerized
system:
Provided that upon registration or integration, as the case may be, of the above said persons, the
Board shall notify the restoration of their gas or electricity connection through sales tax general order]
363
[14AB. Discontinuance of gas and electricity connections.-Notwithstanding anything contained in
this Act or any other law for the time being in force, the Board shall have power through Sales Tax
General Order to direct the gas and electricity distribution companies for discontinuing the gas and
electricity connections of any person who fall in the following categories, namely:–
(a) Any person, including tier-1 retailers, who fail to register for sales tax purpose or
(b) Notified tier-1 retailers registered but not integrated with the Board’s Computerized
System:
Provided that upon registration or integration, as the case may be, of the above
said persons, the Board shall notify the restoration of their gas or electricity connection
through Sales Tax General Order.]
364
[14AC. Bar on operations of bank accounts.- (1) This section shall apply–
(a) where the Commissioner has reasons to believe that a person is engaged in supply of
taxable goods without having registration under this Act;
(b) the Commissioner has provided three consecutive opportunities of being heard to the
person to obtain registration under this Act; and
(c) the person has failed to obtain registration.
(2) Notwithstanding anything contained in this Act or any other law for the time being in
force, the Commissioner shall have the powers to direct banking companies, scheduled banks and other
financial institutions, through an order in writing, to intermittently suspend operation of the bank account
of such a person for three working days.
(3) The Commissioner shall, if the contravention continues under sub-section (1), repeat
suspension specified in sub-section (2), for two more times with an interval of one week between the
suspensions.

361 Inserted vide Finance Act, 2025 dated 29th June, 2005
362 Added vide the Tax Laws (Third Amendment) Ordinance, 2021 (XXII OF 2021) dated 15th September, 2021.
363 Added vide the Finance Act, 2022 dated on 30th June, 2022
364 Inserted vide Finance Act, 2025 dated 29th June, 2005

[51]
 (4) The Commissioner shall, if the contravention under sub-section (1) continues after his
order under sub-section (3), direct the banking companies, scheduled banks and other financial
institutions, through an order in writing to permanently bar operation of the bank accounts of the person.
(5) Upon registration of such person, the Commissioner shall issue and convey order for
removal of bar on operation of his bank accounts not later than two working days.
(6) Any person, aggrieved by any decision or order passed under this section, may within
thirty days of the date of receipt of such decision or order prefer an appeal before the Chief Commissioner
Inland Revenue.
(7) The provisions of this section shall come into force on such date as the Board may notify
in the official Gazette.]
365
[14AD. Bar on transfer of immoveable property.-(1) Where the person fails to obtain registration
within fifteen days from issuance of order under sub-section (4) of section 14AC, the Chief
Commissioner shall constitute a committee comprising the Chief Commissioner, Commissioner and one
member from the Chamber of Commerce or a Trade Associations, as the case may be.
(2) The committee shall issue a notice to such unregistered person which shall also be
prominently displayed at the business premises of the person.
(3) The committee after affording a personal hearing to the person shall either recommend
for imposition of bar on transfer of immovable property or recommend to the Commissioner to remove
the bar imposed under section 14AC.
(4) For imposition of bar on transfer of immovable property, the committee shall recommend
to the Commissioner for imposition of bar on transfer of immovable property:
Provided that the committee shall provide an opportunity to obtain registration within fifteen days
prior to the recommendation.
(5) The Commissioner shall have the powers to direct the property registering authority,
through an order in writing, to bar transfer of immoveable property of any person who fails to obtain
registration after lapse of fifteen days.
(6) Upon registration of such person, the Commissioner shall issue and convey order for
removal of bar on transfer of immovable property not later than two working days.
(7) Any person, aggrieved by the decision or order passed may, within thirty days of the date
of receipt of such decision or order prefer an appeal before the Chief Commissioner Inland Revenue who
is not member of the committee.
(8) The provisions of this section shall come into force on such date as may be notified by
the Board.]
366
[14AE. Other measures for non-registration.-(1) Subject to prior action under section 14AC and
14AD, any person who fails to get registered for the purposes of this Act, the Chief Commissioner shall
have the powers to--
(a) seal the business premises;
(b) seize moveable property; or
(c) appoint a receiver for the management of the taxable activity of a person.
(2) Action under sub-section (1) shall not be carried out, unless-

365 Inserted vide Finance Act, 2025 dated 29th June, 2005
366 Inserted vide Finance Act, 2025 dated 29th June, 2005

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 (a) a public notice is issued specifying the date from which the premises shall be sealed, or
movable property is seized, or a receiver is appointed for the management of the taxable
activity;
(b) a committee comprising the Chief Commissioner, the Commissioner concerned and a
representative from the Chambers of Commerce or Trade Associations, provides an
opportunity of being heard to the person through an open court; and
(c) such decision is made public by placement on the Board‘s website and newspaper as
well.
(3) Upon registration, of such person the Chief Commissioner shall reverse the order issued
under sub-section (1) not later than two working days.
(4) Any person, aggrieved by any decision or order passed under sub-section (1), may within
thirty days of the date of receipt of such decision or order, prefer representation before the Board.
(5) All or any of the provisions of this section shall come into force on such date as the
Board may notify in the official Gazette.]
367
[***]
368
[***]

367 Section 15 was omitted vide the Finance Act, 2004 (II. of 2004), assented on 30th June, 2004. At the time of omission
Section 15 was as under;-
“15 Application for Registration.-(1) A person 15-i[required] to be registered under this Act shall make an
application in the prescribed form to the Collector 15-ii[before making taxable supplies]
(2) An application to register shall be made to such Collector as the Board may, by notification in the
official Gazette, specify.
[15-i Substituted the word “requiring” vide Finance Act, 1998 (III of 1998)]
[15-ii Substituted for the words, “within thirty days of the time when he is first required to be registered” vide
Finance Act, 1998 (III of 1998)]
Earlier, the Section 15 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution of Section
15 was as under:-
“15 Application for Registration.-(1) A person who is required to be registered under this Act shall
make an application in the prescribed form to the Collector of the area where his business premises
are located:
Provided that, in case of manufacturer whose business office and manufacturing unit are
located in different areas, he shall apply to Collector of the area in whose jurisdiction his
manufacturing unit is located
(2) The person required to be registered on the commencement of this Act shall apply for
registration by such date as the Federal Government may, by Notification in official
Gazette, specify,
(3) If at any time after the commencement of this Act a person becomes liable for
registration he shall make an application in the prescribed form to the Collector within
thirty days of his liability to be registered 15-iii[:]
15-iv
[provided that a new business concern shall, before commencing supply of taxable
goods, make such application]”
[15-iii Substituted for the full stop vide Finance Act, 1994 (XII of 1994)]
[15-iv Proviso was added vide Finance Act, 1994 (XII of 1994)]
368 Section 16 was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003. At the time of omission
Section 16 was as under:-
16-i
[16 Registration of branches divisions etc.-A registered person, or a person liable for registration who conducts
his taxable activity through distinct different branches, divisions or manufacturing units located in different
Collect orates may make an application for registration in accordance with section 15 for such branches,
divisions or manufacturing units separately, subject to such conditions and in. such manner as the Board may,
by notification in the official Gazette, specify.]”
[16-i Section 16 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution of Section 16
was as under:--

[53]
369
[***]
370
[***]
371
[***]

“16 Registration of branches divisions etc.-Where a person liable for registration conducts his business activity
distinctly divisible in different branches, divisions or manufacturing units which are located in different
collect orates, such branches, divisions or manufacturing units shall be registered separately with the collect
orate in whose jurisdiction those are located:
Provided that on an application made by the registered person, the Board, if satisfied that there
would be no loss of revenue may subject to such conditions and restrictions as it deems fit to impose, allow a
single registration in respect of such branches, divisions or manufacturing units.”
369 Section 17 was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004). At the time of omission
Section 17 was as under:--
“
17 Certificate of Registration-lf the Collector or such other officer as may be authorized by him in this behalf
is satisfied that the application for registration is complete in all respect, he shall register the applicant and
issue a certificate of registration 17-i[in such form as the Board may, by notification in the official Gazette,
specify.”
[17-i Substituted for brackets and words “(to person) indicating the registration number assigned to the
applicant” vide the Finance Act, 1996 (IX of I 996)
370 Section 18 was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of omission
Section 18 was as under:--
“18 Voluntary Registration.-(1) A person who makes or intends to make taxable supplies but is not required to
be registered under this Act, may make an application for registration in such form and manner as the Board
may, by notification in the official Gazette, specify.
18-i
[***]
[18-i Sub-section (2) was omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003. At the time
of omission Sub-section (2) was as under:--
“(2) A person registered in pursuance to application made under sub-section (I), shall not be de-
registered before expiry of two years from the date of registration.”
18-ii
[(3) A 18-iii[***] retailer making taxable supplies may, on his own accord, apply for registration in
accordance with the provision of sub-section (I)
[18-ii Sub-section (3) was substituted vide the Finance Act, 1997 (XXII of 1997). At the time of substitution sub-
section (3) was as under:--
“(3) The importers, distributors or wholesalers making taxed supply of goods may on their own accord,
apply for registration in accordance with sub-section (I):
Provided that on registration such importers distributors and wholesalers shall not
charge output tax on the supplies made by them but they shall issue replacement invoices in respect
of such supplies.”
[18-iii The words and comma “distributor; wholesaler or” were omitted vide the Finance Act, 1999 (IV of 1999),
assented on 29th June, 1999]
18-iv
[* * *]
[18-iv Proviso was omitted vide the Finance Act, 2003 (1 of 2003), assented 16th June, 2003). At the time of
omission Proviso was as under:--
“Provided that on registration, Notwithstanding anything contained in the Act such distributor
wholesaler or retailer shall not be entitled to be de-registered before expiry of two years from the date of
registration”
Earlier, the Section 18 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution Section 18
was as under:--
“18 Voluntary Registration.-If any person not otherwise liable for registration opts for registration he may make
an application for registration in the prescribed manner to the Collector and on receipt of his application
that person may be registered for the purposes of this Act.
“Provided that on registration,. notwithstanding anything contained in the Act such distributor
wholesaler or retailer shall not be entitled to be de-registered before expiry of two years from the date of
registration”
371 Section 19 was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004). At the time of omission
Section 19 was as under: -- .
“19 Compulsory Registration.-If a person who is required to be registered or enrolled under this Act does not
apply or registration or enrolment an the Collector or such other officer as may be authorised by him in this
behalf, after such inquiry as he thinks fit, is satisfied that such person was required to be registered or

[54]
372
[***]
373
[21. De-registration, blacklisting and suspension of registration.-(1) The Board or any officer,
authorized in this behalf may subject to the rules de-register a registered person or such class of registered
persons not required to be-registered under this Act.

enrolled, the Collector or such other officer shall register or enroll that person and that he shall be deemed to
have registered or enrolled from the date he became liable for registration or enrollment]:
[Provided that if it is subsequently established that a person who was not liable to be registered or
enrolled but was wrongly registered or enrolled under this section due to inadvertence, error or
misconstruction, the Collector shall cancel such registration on or enrollment and such person shall. subject
to the provisions of section 3B, not be liable to pay any tax, additional tax or penalty under any of the
provisions of this Act or rules made there under.
372 Section 20 was omitted vide the Finance Act, 2004. (II of 2004), assented on 30th June 2004. At the time of omission
Section 20 was as under:--
“20 Change in the particulars or Registration.-In case there is a change in the name address or other particulars
as stated in the registration application the registered person shall notify the change to the Collector or the
local Sales Tax Office within fourteen days of such change.”
373 Section 21 was substituted vide the Finance Act, 2004 (11 of 2004), assented on 30th June, 2004. At the time of
substitution Section 21 was as under;--
“21 De-registration.-(1) Every registered person who ceases to carry on his business or whose supplies become
exempt from tax, shall apply to the Collector for cancellation of his registration, and the Collector, after
satisfying himself 21-i[either through an audit' or otherwise) that no tax liability is outstanding against that
person, may cancel the registration of that person from such date as he may specify but not later than four
months from the date of such application or the date all the dues outstanding against such person are
deposited by him, whichever is the later:
Provided that the Collector may for reasons to be recorded ill writing, extend the aforesaid period by a further
period of two months,
[21-i Substituted the words “through an audit” vide the Finance Ordinance, 200I (XXV of 200I), assented on 18th
June, 2001]
(2) A registered person whose total taxable turnover of his taxable activity during the last twenty
months remains below the limit specified in section 21-ii[(14) may apply to the Collector for:-
(a) cancellation of his registration; and
(b) his enrolment as turnover tax payer and the Collector, if satisfied that the applicant .has
ceased to .be liable for registration, may cancel the registration of that' person and may
enroll him as turnover tax payer from such date as he may specify;
[21-ii Substituted for the figure and letter “3A” vide the Finance Act, 2003 (I of 2003), assented on 16th June,
2003]
Provided that if such liability ceases during the currency of a financial year the
cancellation of registration and enrolment as turnover tax payer shall take effect from the
beginning of next financial year
(3) The person making application under sub-section (I) or sub-section (2) shall 21-iii[ upon completion
of the audit. which may have been initiated upon his. application for de-registration, discharge any
outstanding liability which may have been raised therein by tiling a final return under the provision
of section 28)
[21-iii Substituted the words and figures “continue to file the return under section 26 till his registration is
cancelled vide the Collector” vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
(4) If a registered person fails to file lax return under section 26 for six consecutive months, the officer
of sales tax, not below the rank of an Assistant Collector, may, without prejudice to any action that
may be taken under any other provision of this Act, after issuing a notice in writing and after giving
an opportunity of being heard to such person, cancel the registration after satisfying himself that
no tax liability is outstanding against such person 21-iv[:]
[21-iv Substituted for the full stop vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
21-v
[Provided that' in cases where the Collector is satisfied that a registered person is
found to have issued fake' invoices, evaded tax or has committed tax fraud, he may blacklist such
person or suspend his registration or as the case may be, enrolment pending further inquiry:
[21-v Provisos was added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
Provided further that order suspending registration, enrolment or blacklisting such
registered or enrolled person, shall being writing and copy thereof shall be communicated to the
registered or enrolled person, as the case may he, and show cause notice for recovery of evaded

[55]
 (2) Notwithstanding anything contained in this Act. In cases where the 374[commissioner] is
satisfied that a registered person is found to have issued fake invoices 375[***] or has 376[otherwise]
committed lax fraud, he may 377[issue an order of suspension and blacklisting] such person or suspend his
registration in accordance with such procedure as the Board may, by notification in the official Gazette,
prescribe.]
378
[(2A) The Commissioner shall, within ten days of issuance of order of suspension, issue a show
cause notice to the registered person. Upon receipt of the reply to the notice and after giving an
opportunity of hearing to the registered person, if the Commissioner is satisfied, he may order for
revoking of suspension of the registered person or issue an appealable speaking order for blacklisting of
the registered person within thirty days of receipt of the reply to the notice.]
379
[(3) During the period of suspension of registration, the invoices issued by such person shall
not be entertained for the purposes of sales tax refund or input tax credit, and once such person is
blacklisted, the refund or input tax credit claimed against the invoices issued by him, whether prior or
after such blacklisting shall 380[***] be rejected through a self-speaking appealable order and after'
affording an opportunity of being heard to such person.]

amount. of tax and de- registration or de-enrollment maybe issued within ninety days of completion
of inquiry.]
(5) The obligations. and liabilities of the person whose registration is cancelled under sub-section (I),
(2) or (4) relating to the-period when he conducted “business as a registered person shall not be
affected' By the fact that his registration has been canceled or that he has ceased to-be a registered
person,
21-vi
[(6) Any person enrolled under section 3A may apply for de-enrollment and the. provisions of this
section shall mutatis mutandis apply.]
[21-vi Sub-section (6) was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
Earlier, the Section 21 was substituted vide Finance Act, 1998 (III of 1998). At the, time of substitution Section 21 was
as under:--
“21 De-registration.-(I) Every registered person who ceases to carry on his business 21-vii[Or whose supplies
become exempt from tax] shall communicate, this fact to the Collector or the local Sales Tax Office within
fourteen days of the date of cessation, and the Collector or such other officer as may be authorised by him
may, alter satisfying himself that .no tax liability is outstanding against that person, cancel the registration of
that person from such date as may be determined by him
(2) A registered person who ceases to be liable for registration under this Act may apply to the
Collector for the cancellation of his registration, and the Collector if satisfied that he has so ceased
may, on an application made by. that person, cancel the registration of that Person from such date
as he may specify:
Provided that if such liability cases during the currency of a financial year the
cancellation shall take effect from the beginning of next financial year.
(3) The obligations and liabilities of the person whose registration is cancelled under sub-section (I) or
sub-section a) relating to the period when he conducted business as a registered person shall not
be affected by the fact that his registration has been cancelled or that he has ceased to be a
registered person,
21-viii
[(4) Notwithstanding anything contained in the .preceding sub-sections a person shall cease to be liable
for registration when the total taxable turnover of his taxable activity during the last twelve
months remains below “one million rupees.]”
[21-vii Words were inserted vide the Finance Act, 1996 (IX of 1996)]
[21-viii Sub-section (4) was added vide the Finance Act, 1996 (IX of 1996)]
374 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010. Earlier the
same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010) promulgated on 6th
February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th October, 2009
375 The comma and words “, evaded tax” was omitted vide Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
376 The word was inserted vide Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
377 Substituted the word “blacklist” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
378 Inserted vide Finance Act, 2025 dated 29th June, 2005
379 Sub-section (3) was added vide the Finance Act, 20II (XVI of 20II), assented on 29th June, 20II
380 The words and figure “unless the registered buyer has fulfilled his responsibilities under section 73” were omitted
vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013

[56]
 381
[(4) Notwithstanding anything contained in this Act, where the Board, the concerned
Commissioner or any officer authorized by the Board in this behalf has reasons to believe that a registered
person is engaged in issuing fake or flying invoices, claiming fraudulent input tax or refunds, does not
physically exist or conduct actual business, or is committing any other fraudulent activity, the Board,
concerned Commissioner or such officer may after recording reasons in writing, block the refunds or
input tax adjustments of such person and direct the concerned Commissioner having jurisdiction for
further investigation and appropriate legal action.]
382
[***]
383
[21A. Active taxpayers list.-The Board shall have the power to maintain active taxpayers list in the
manner as may be prescribed by rules and such rules may provide for the restrictions and limitations to be
imposed on a person who ceases to be an active taxpayer.]

CHAPTER-IV
BOOK KEEPING AND INVOICING
REQUIREMENTS
384
[22. Records.-(1) A registered person making taxable supplies shall maintain and keep at his business
premises or registered office in English or Urdu language the following records of goods purchased 385[,
imported] and supplied (including zero- rated and exempt supplies) made by him or by his agent acting on
his behalf in such form and manner as would, permit ready ascertainment of his tax liability during a tax
period--

381 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
382 Sub-section (5) was omitted vide Finance Act, 2025, dated 39th June, 2024. At the time of omission sub-section (5)
was as under:-
“(5) Notwithstanding anything contained in this Act, the Chief Commissioner may, either of his own motion or on
application made by the registered person call for and examine the record of proceedings and the order of suspension
and blacklisting under sub-section (2) and after making such inquiry as is necessary, may modify the such order as he
may deems fit:
Provided that no order under this sub-section shall be passed unless an opportunity of being heard has been
provided to the registered person.”
383 Inserted vide Finance Act, 2015
384 Section 22 was substituted vide the Finance Act, 1996 (IX or 1996). At the time of substitution Section 22 was as
under:--
“22 Records.-(1) A registered person shall maintain and keep at his business premises in English or Urdu
language the following records of' goods purchased and supplies (including zero-rated and supplies exempted
from tax) made by him or by his agent acting on his behalf in such form and manner as would permit ready
ascertainment of his tax liability during a tax period:--
(a) records of supplies made shall indicate the description quantity and value of goods, name and
address of the person to whom supplies were made and the amount of the tax charged.
(b) records of goods purchased shall show the description, quantity and value of goods, name, address
and registration number of the supplier and the amount of the tax on purchases;
(c) records of zero-rated and exempt supplies; and
(d) invoices, credit notes, debit notes, bank statements, inventory records and such other records as
may be 22-i[specified by the Board]
[22-i Substituted for “prescribed” vide the Finance Act, 1991]
Provided that in case of manufacturer, the records shall be kept at the manufacturing premises
(2) In case of purchase from a non-registered person of second-hand goods or such other goods as the Federal
Government may specify by Notification in the official Gazette, the recipient shall keep such records as
would permit the following particulars to be readily ascertained:--
(a) the name and address of the-supplier;
(b) the date on which the goods were acquired;
(c) description of goods; and
(d) quantity and value of goods.”
385 The comma and word was inserted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005

[57]
 (a) records of supplies made shall indicate the description, quantity and value of goods, name
and address of the person to whom supplies were made and the amount of the tax
charged;
(b) records of goods purchased shall show the description, quantity and value of goods,
name, address and registration number of the supplier and the amount of the tax on
purchases;
386
[(c)] records of goods imported shall show the description, quantity and value of goods and the
amount of tax paid on imports;]
387
[(d)] records of zero-rated and exempt supplies;
388
[(da)] double entry sales tax accounts.]
389
[(e)] invoices, credit notes, debit notes, bank statements 390[banking instruments in terms of
section 73,] inventory records 391[, utility bills, salary and labour bills, 392[cash book,]
rental agreements, sale-purchase agreements and lease agreements]; 393[***]
394
[(ea) record relating to gate passes, inward or outward, and transport receipts.]
395
[(eb) Electronic version of records mentioned in clauses (a) to (ea) of this sub-section.]
396
[(f)] such other records as may be specified by the Board:
397
[Provided that the persons paying 398[***] retail tax shall keep such record as may be specified
by the Board.]
399
[(1A) Notwithstanding anything in any other law for the time being in force, the Board may
require, by notification in the official Gazette, a registered person or class of registered persons to declare
and use only as many number of business bank accounts as may be specified by the Board in such
notification to make or receive payments on account of purchase and sale transactions for the purpose of
this Act or rules made thereunder and to make payment of due tax from such accounts only.]
(2) The Board may, by notification in the official Gazette, specify for any class of taxable
persons or any other person registered under this Act to keep such other records for the purposes of this
Act.
400
[(2A) The Board may, by notification in the official Gazette, specify for any class of taxable
persons registered under this Act to use such electronic fiscal cash registers as are approved by the Board
in the manner as may be prescribed.]

386 Clause (c) was inserted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
387 Existing Clause (c) re-lettered as Clause (d) vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
388 Clause (da) was inserted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006)
389 Existing Clause (d) re-lettered as Clause (e) vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
390 The words, comma and figure inserted vide the Finance Act, 2004 (II of 2004)
391 The comma and words inserted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
392 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
393 The word “and” was omitted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
394 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
395 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
396 Existing Clause (e) re-lettered as Clause (f) vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
397 Proviso was substituted vide the Finance Act.1997 (XXII of 1997). At the time of substitution proviso was as under:--
“Provided that the registered Importers. distributors and wholesaler, not charging output tax on taxed supplies
made by them or persons paying turnover tax shall keep such records as may be specified by the Board”
398 The words “turnover tax or” were omitted vide the Finance Act, 2005 (VII of 2005), assented on 29th June,2005
399 Sub-section (I A) was inserted vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
400 Sub-section (2A) was inserted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999

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 401
[(3) The Board may, by notification in the official Gazette, prescribe the procedure or software
for electronically maintenance of records, filing of sales tax returns or refunds and for any other matter or
approve any software for electronic maintenance of records and filling of returns or refunds by a person
or class of such persons.]
402
[(4) The registered persons, whose accounts are subject to audit under the Companies
Ordinance, 1984 (XL VII of 1984), shall be required to submit a copy of the annual audited accounts,
along with a certificate by the auditors certifying the payment of due tax by the registered person.]
23. Tax Invoices.-(1) A registered person making a taxable supply shall issue a serially numbered tax
invoice at the time of supply of goods containing the following particulars 403[, in Urdu or English
language,] namely--
(a) name, address and registration number of the supplier;
404
[(b) name, address and registration number of the recipient and in case of supplies by
manufacturer or importer to unregistered distributor, the NIC or NTN of such
unregistered distributors, as the case may.]
Explanation.-For the purpose of this clause, ordinary consumer means a person who is
buying goods for his own consumption and not for the purpose of resale or processing:
Provided that the condition of NIC or NTN shall be effective from 1st August, 2019
405
[:]]
406
[Provided further that the condition of NIC shall not apply in the case of payment
through debit or credit card or digital mode;]
(c) date of issue of the invoice;
(d) description 407[, including count, denier and construction in case of textile yarn and
fabric,] and quantity of goods;
(e) value exclusive of tax;
(f) amount of sales tax; and
408
[***]

401 Sub-section (3) substituted vide the Finance Act, 2003 (I of 2003), assented on 10th June, 2003.At the time of
substitution of sub-section (3) was as under:--
“(3) Where a person who is required to maintain records under this Act may keep the record on electronic data in
such form and manner as may be approved by the Board.”
402 Sub-section (4) was added vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
403 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
404 Clause (b) was substituted vide the Finance Act, 2022 dated on 30th June, 2022. At the time of substitution clause (b)
was as under:-
i[(b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the
case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount
does not exceed rupees ii[one hundred] thousand, if sale is being made to an ordinary consumer.
i Sub-section (2) was substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the
time of substitution Sub-section (2) was as under:-
“(b) name, address and registration number of the recipient;
404 Substituted the word “fifty” vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
405 Substituted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
406 Added vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
407 Inserted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
408 Clause (ff) was omitted vide the Finance Act, 2004 (II of 2004), At the time of omission Clause (ff) was as under:--
23- i
[(ff) amount of sales tax as specified in sub-section (1A) of section 3;]
[23-i Clause (ff) was inserted vide Finance Act, 1998 (III of 1998)]

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 (g) value inclusive of tax:
409
[Provided that the Board may, by notification in the official Gazette, specify such modified
invoices 410[***] for different persons or classes of persons:
Provided further that not more than one tax invoice shall be issued for a taxable supply 411[ 412[.]]]
413
[Provided also that where any goods are transported or supplied, the registered person shall
ensure the generation and linkage of the tax invoice with the e-Bilty generated under section 40C of this
Act and section 83C of the Customs Act, 1969.]
414
[***]
415 416 417
[(2) No person other than a registered person of a person paying [*** [***] retail tax]
shall issue an invoice under this section.]
418
[(3) A registered person making a taxable supply shall, subject to such conditions, restrictions
and limitations as the Board may, by notification in the official Gazette, specify to issue electronic
invoices.]
419
[(4) The Board may, by notification in the Official Gazette, prescribe the manner and
procedure for regulating the issuance and authentication of tax invoices.]
420
[(5) The Board through notification in the official Gazette, may require any person or class of
persons to integrate their electronic invoicing system with the Board‘s Computerized System for real time
reporting of sales in such mode and manner and from such date as may be specified therein.
(6) Licensed integrator shall integrate electronic invoicing system of registered persons
referred to in sub-section (5) in such mode and manner as may be prescribed:
Provided that from such date, and in such mode and manner, as prescribed by the Board, all Tier-
1 retailers shall integrate their retail outlets with Board‘s computerized system for real-time reporting of
sales.]

409 Provisos was substituted vide the Finance Act, 1996 (IX of 1996). Provisos at the time of substitution was as under:--
“Provided that the Federal Government. keeping in view the nature of a business activity or value of a supply,
may, by Notification in the official Gazette dispense with the requirement of the issuance of tax invoice or prescribe a
modified invoice containing such particulars as may be specified therein Provided further that--
(i) not more than one tax invoice shall be issued for a taxable supply. and
(ii) where a person claims to have lost the original tax invoice the supplier may provide a copy clearly
marked “copy only” to that person.”
410 The commas and words including replacement invoices,” was omitted vide the Finance Act, 1997 (XXII of 1997
411 Substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
412 Substituted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
413 Inserted vide Finance Act, 2025 dated 29th June, 2005
414 Proviso was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission proviso was as under:
“Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or
penalty shall not arise against the seller, in case of sale made in good faith.”
415 Sub-section (2) was added vide the Finance Act, 1996 (IX of 1996)
416 The words “turnover tax or” were omitted vide the Finance Act, 2004 (II of 2004)
417 The words “or retail tax” were added vide the Finance Act, 1997 (XXII of 1997)
418 Sub-section (3) was substituted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of substitution
sub-section (3) was as under:-
“(3) A registered person making a taxable supply may; subject to such conditions, restrictions and limitations as
the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically
and to the Board as well as to the Commissioner, as may be specified.”
419 Sub-section (4) was added vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
420 Added vide Finance Act, 2025 dated 29th June, 2005

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421
[24. Retention of record and documents for 422[six] years.-A person who is required to maintain
any record or documents under this Act, shall retain the record and documents for a period of 423[six]
years after the end of the tax period to which such record or documents relate 424[or till such further period
the final decision in any proceedings including proceedings for assessment, appeal, revision, reference,
petition and any proceedings before an Alternative Dispute Resolution Committee is finalized].]
425
[25. Audit of sales tax affairs.-(1) The Commissioner on the basis of reasons to be recorded in
writing, may direct the officer of Inland Revenue not below the rank of Assistant Commissioner to

421 Section 24 was substituted vide the Finance Act, 1996 (IX of 1996). Section 24 at the time of substitution was as under:-
“24 Retention of records for five years.-A registered person shall retain the prescribed records for a period of
five years after the end of the tax period to which those relate.”
Earlier, the Section 24 was substituted vide the Finance Act, 1991. At the time of substitution Section 24 was
as under:--
“24 Retention of records for 5 years.-A registered person required to maintain records under sub-
section (I) of Section 23 shall retain such records in Pakistan for a period of five years after the end
of the tax period to which those relate.”
422 Substituted the word 24-i[five] vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th
June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009)
[24-i Substituted the word 24-ii[three] vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007].
Earlier, the word “five” was Substituted the word [three] vide the Finance Act, 2005 (VII of 2005), assented
on 29th June, 2005]
423 Substituted the word 24-ii[five] vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th
June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
[24-ii Substituted the word [three] vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007]. Earlier,
the word “five” was Substituted the word [three] vide the Finance Act, 2005 (VII of 2005), assented on 29th
June, 2005]
424 The words and commas was added vide the Finance Act, 20I0 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 20I0. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
425 Section 25 was substituted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of substitution section
25 was as under:-
“25. Access to record, documents, etc.-(1) A person who is required to maintain any record or documents under
this Act or any other law shall, as and when required by Commissioner, produce record or documents which are in his
possession or control or in the possession or control of his agent; and where such record or documents have been kept
on electronic data, he shall allow access to the officer of Inland Revenue authorized by the Commissioner] and use of
any machine on which such data is kept.
(2) The officer of Inland Revenue authorized by the Commissioner, on the basis of the record, obtained under sub-
section (1), may, once in a year, conduct audit:
Provided that in case the Commissioner has information or sufficient evidence showing that such registered person is
involved in tax fraud or evasion of tax, he may authorize an officer of Inland Revenue, not below the rank of Assistant
Commissioner, to conduct an inquiry or investigation under section 38:
Provided further that nothing in this sub-section shall bar the officer of Inland Revenue from conducting audit of the
records of the registered person if the same were earlier audited by the office of the Auditor-General of Pakistan.
[***]
(2A) For the purpose of sub-section (2) of section 25, the Commissioner may conduct audit proceedings
electronically through video links or any other facility as prescribed by the Board.
(3) After completion of the audit under this section or any other provision of this Act, the officer of Inland
Revenue may, after obtaining the registered person's explanation on all the issues raised in the audit shall pass an order
under section 11.
[***]
[***]
(5) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to deposit the amount of tax
short, paid or amount of tax evaded along with default surcharge voluntarily, whenever it comes on his notice, before
receipt of notice of audit, no penalty shall be recovered from him:

[61]
conduct audit of sales tax affairs of any registered person and issue a notice to such registered person
intimating him regarding audit of sales tax affairs.
Explanation.-For the removal of doubt, it is declared that the powers of the Commissioner to direct
conduct of audit and to issue a notice under this sub-section are independent of the powers of the Board
under section 72B and nothing contained in section 72B restricts the powers of the Commissioner to
direct conduct of audit and to issue notice under this sub-section.
(2) The Commissioner shall communicate the reasons referred to in sub-section (1) to the
registered person whose audit is to be conducted through the notice under sub-section (1).
Explanation.-For the removal of doubt, it is declared that the Commissioner may not provide an
opportunity of hearing before issuance of notice under sub-section (1).
(3) The reasons referred to in sub-section (1) shall be based on scrutiny of the available
records including sales tax and federal excise returns, income tax returns and withholding statements,
financial statements or third party information:
Provided that the reasons shall not include the mere verification of input tax, output tax, refund
claim and compliance of legal provisions without identifying risk factors that require such verification.
(4) Subsequent to the issuance of notice under sub-section (1), the officer of Inland Revenue,
may call for any record or documents including record maintained under this Act, the rules made
thereunder or any other law for the time being in force for conducting audit of the sales tax affairs of the
person. Where such record or documents have been kept on electronic data, the registered person shall
allow authorize officer of Inland Revenue access to the use of machine and software on which such data
is kept and the officer of Inland Revenue may obtain duly attested hard copies of such information or data
from the registered person:
Provided that the officer of Inland Revenue shall not call for record or documents of the
registered person after expiry of six years from the end of the financial year to which they relate.
(5) The officer of Inland Revenue may require the registered person to attend his office in
person or through an authorized representative. The registered person shall produce such accounts,
documents or any evidence as the officer of Inland Revenue may consider necessary.
(6) The officer of Inland Revenue not below the rank of Assistant Commissioner may
conduct or cause to be conducted such enquiry and obtain such information from any third party as he
considers appropriate.
(7) The officer of Inland Revenue not below the rank of Assistant Commissioner shall
conduct audit of the sales tax affairs to verify the correctness or otherwise of the declared tax liability,
output tax, input tax claimed, tax paid, refund claimed, stocks consumed or available for ascertaining

Provided if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with
default surcharge during the audit, or at any time before issuance of show cause notice [***], he may deposit the
evaded amount of tax, default surcharge] under section 34, and twenty five per cent of the penalty payable under
section 33:
Provided further that if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded
along with default surcharge after issuance of show cause notice, he shall deposit the evaded amount of tax, default
surcharge under section 34, and full amount of the penalty payable under section 33 and thereafter, the show cause
notice, shall stand abated.
Explanation.-For the purpose of sections 25, 38, 38A, 38B and 45A and for removal of doubt, it is declared that the
lowers of the Board, Commissioner or officer of Inland Revenue under these sections are independent of the powers of
the Board under section 72B and nothing contained in section 72B restricts the powers of the Board, Commissioner or
officer of inland Revenue to have access to premises, stocks, accounts, records, etc. under these sections or to conduct
audit under these sections.”

[62]
compliance or otherwise with the provisions of this Act and the rules made thereunder on the basis of the
record and evidence obtained under sub-sections (5) or (6).
(8) The officer of Inland Revenue may conduct audit proceedings electronically through
video links, or any other facility as may be prescribed by the Board.
(9) After completion of the audit, the officer of Inland Revenue may, if required pass an
order under section 11E, after providing an opportunity of being heard to the registered person under sub-
section (1) of section 11E.
(10) Notwithstanding anything contained in sub-sections (7) and (9) where a registered person
fails to produce before the officer of Inland Revenue, any accounts, documents or records required to be
maintained under this Act or the rules made thereunder or any other relevant document electronically kept
record, electronic machine or any other evidence that may be required by the officer of Inland Revenue
for the purpose of audit. The officer of Inland Revenue may proceed to make best judgment assessment
under section 11D of this Act.
(11) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to
deposit the amount of tax short paid or amount of tax evaded along with default surcharge voluntarily,
whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him:
Provided that if a registered person wishes to deposit the amount of tax short paid or amount of
tax evaded along with default surcharge during the audit, or at any time before issuance of show cause
notice under section 11E, he may deposit the evaded amount of tax, default surcharge under section 34,
and twenty five percent of the penalty payable under section 33:
Provided further that if a registered person wishes to deposit the amount of tax short paid or
amount of tax evaded along with default surcharge after issuance of show cause notice under section 11E,
he shall deposit the evaded amount of tax, default surcharge under section 34, and full amount of the
penalty payable under section 33 and thereafter, the show cause notice, shall stand abated.]
426
[25A. Drawing of samples.-Where an authorized officer of 427[Inland Revenue] considers it necessary
to take a sample of any goods or raw materials, for the purpose of determining their liability to sales tax
or for the purpose of establishing their value or for any other reason, he may remove minimum quantity of
goods or raw materials sufficient to enable- a proper examination or analysis to be made. At the time of
taking the sample the person in possession of the goods shall be informed and given the opportunity to
sign the representative samples, so drawn, and take a corresponding sample for his record. Any sample
taken under this section shall be taken against a proper receipt a copy each of which shall be kept in the
record by the registered person and the 428[Large Taxpayers Unit or Regional Tax Office, as the case may
be].]
429
[25AA. Transactions between associates.- 430[(1)]The Commissioner or an officer of Inland Revenue
may, in respect of any transaction between persons who are associates, determine the transfer price of

426 Section 25A was inserted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
427 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October.2009
428 Substituted the word and comma “collect orate” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010
effective from 5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (II
of 2010) promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October, 2009
429 Section 25AA was inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th
June, 2010. Earlier this section was inserted vide the Finance (Amendment) Ordinance, 2010 (III of 2010) promulgated
on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th October,
2009)

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taxable supplies between the persons as is necessary to reflect the fair market value of supplies in an arm's
length transaction.]
431
[(2) The Board may, by notification in official gazette, prescribe rules for carrying out the
purpose of sub-section (1).]

CHAPTER-V
RETURNS
432 433
[26. [***] Return.-(1) Every registered person 434[***] shall furnish not later than the due date a
true [, complete] and correct return in the prescribed form to a designated bank 436[or any other office]
435

specified by the Board, indicating the purchases and the supplies made during a tax period, the tax due
and paid and such other information, as may be prescribed 437[:]
438
[Provided that the Board may, by notification in the official Gazette, require any person or
class of persons to submit return on quarterly basis:
Provided further that the Board may, by notification in the official Gazette, require any person or
class of persons to submit such return as may be prescribed annually in addition to the monthly return or
quarterly return:
Provided also that the return filed electronically on the web or any magnetic media or any other
computer readable media as may be specified by the Board shall also be deemed to be a return for the
purpose of sub-section (1) and the Board may, by notification in the official Gazette, make rules for
determining eligibility of the data of such returns and e-intermediaries who will digitize the data of such
returns and transmit the same electronically under their digital signatures [:]]
439
[Provided also that every online marketplace shall furnish not later than the due date a true,
complete and correct monthly statement in the prescribed form, indicating the supplier-wise amount paid
and tax due and such other information of the taxable supplies of digitally ordered goods irrespective of
the economic ownership of the supplies from within Pakistan:
Provided further also that every payment intermediary and courier shall furnish not later than the
due date a true, complete and correct monthly statement in the prescribed form, indicating the supplier-

430 Renumbered vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
431 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
432 Section 26 substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution section 26 was as under:--
“26 Monthly Return.-(1) Every registered person shall furnish not later than the due date a true and correct
return in the prescribed form to the local Sales Tax Office indicating the purchases and the supplies made
during a tax period and the tax 26-i[paid] in respect of that period.
(2) If there is a change in the rate of tax during a tax period there shall be furnished a separate return in
respect of each portion of tax period showing the application of different rates of tax.
(3) In case a registered person has more than cine branch, division, or manufacturing unit within the
jurisdiction of a Collector, he shall furnish a separate return in respect of each branch, division or
manufacturing unit to the respective Sales Tax Office:
Provided that the Board may, if satisfied that there will be no loss of revenue, on an
application made by a registered person, allow him to furnish a single return in respect of his all
branches, divisions or manufacturing units to any local Sales Tax Office within the jurisdiction of a
Collector.”
[26-i Substituted for “payable” vide the Finance Act, 1991]
433 The word “Monthly” was omitted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006
434 The words “making taxable supplies” was omitted vide the Finance Act, 1999 (IV of 1999), assented on 29th June,
1999
435 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
436 The words were inserted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006
437 Substituted for the full stop vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006
438 Provisos was added vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006
439 Added vide Finance Act, 2025 dated 29th June, 2005

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wise amount paid and tax due and such other information for taxable supplies of digitally ordered goods
from within Pakistan through an online market place, website and software application and delivering
goods using its payment platform or courier service as the case may be.]
440
[***]
441
[***]
442
[(2A) The officer of Inland Revenue may, by notice in writing, require any person who, in his
opinion, is required to file a return under this section for a tax period or tax periods but who has failed to
do so, to furnish the return or returns within fifteen days from the date of service of such notice or such
longer or shorter period as may be specified in such notice or as the officer of Inland Revenue may allow:
Provided that the notice under this sub-section shall only be issued within fifteen years from the
end of the financial year in which the return was to be filed, in cases of tax fraud and five years in all
other cases.]
443
[(3) A registered person may, subject to approval of the 444[Commissioner Inland Revenue]
having jurisdiction, file a revised return within 445[ one hundred and twenty] days of the filing of return
under sub-section (l) or, as the case may be, sub-section (2) 446[or under clause (a). or clause (b) of section
27], to correct any omission or wrong declaration made therein 447[ [.]]
448
[***]
449
[(3A) Unless restricted by the compliance risk management system of the Board, the approval
under sub-section (3), shall not be required if revised return is filed within sixty days of filing of return
and the tax payable therein is more than the amount paid or the refund claimed therein is less than the
amount as claimed, under the return sought to be revised.]
450
[(4) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to file
revised return voluntarily along with deposit of the amount of tax short paid or amount of tax evaded
along with 451[ default surcharge], whenever it comes to his notice, before receipt of notice of audit, no
penalty shall be recovered from him:

440 Proviso was omitted vide the Finance Act, 1997 (XXII of 1997). At the time of omission proviso was as under--
“Provided that the registered importers, distributors and wholesalers making taxed supply shall not be
required to file the return”
441 Sub-section “(2)” was omitted vide the Finance Act, 2016. At the time of omission Sub-section “(2)” was as under:--
“(2) If there is a change in the rate of tax during a tax period, a separate return in respect of each portion of tax
period showing the application of different rates of tax shall be furnished.”
442 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
443 Sub-section (3) substituted vide the Finance Act, 2006 (of 2006), assented on 30th June, 2006. At the time of omission
sub-section (3) was as under: --
26-i
[(3) A registered person may file a revised return to correct any omission or wrong declaration made in a return
filed under sub-section (I) or sub-section (2).”
[26-i Sub-section (3) was added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
444 Substituted the words “Collector of Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010
effective from5thJune, 2010.Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010
(III of 2010) promulgated on 6th February,2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009)
promulgated on 28th October, 2009
445 Substituted the word “ninety” vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
446 The words and brackets were inserted vide the Finance Act, 20II (XVI of 20II), assented on 29th June, 2011
447 Substituted vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
448 Proviso was omitted vide Finance Act, 2025, dated 39th June, 2024. At the time of omission proviso was as under:-
“Provided that the approval under this sub-section shall not be required if revised return is filed within sixty days of
filing of return and either the tax payable therein is more than the amount paid or the refund claimed therein is less than
the amount as claimed, under the return sought to be revised.”
449 Inserted vide Finance Act, 2025 dated 29th June, 2005
450 Sub-section (4) was added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
451 Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005

[65]
 Provided that in case the registered person wishes to deposit the amount of tax as pointed out by
the officer of 452[Inland Revenue] during the audit, or at any time before issuance of the show cause notice
453
[***] he may deposit the evaded amount of tax, 454[default surcharge] under section 34, and twenty-five
per cent of the penalty payable under section 33 along with the revised return:
Provided further that in case the registered person wishes to deposit the amount after issuance of
show cause notice, he shall deposit the evaded amount of sales tax 455[***] 456[default surcharge] under
section 34, and full amount of the leviable penalty under section 33 along with the revised return and
thereafter, the show cause notice, shall stand abated.]
457
[(5) The Board may by notification in the official Gazette, require any person or class of
persons, for any goods of such description or class, to furnish such summary or details or particulars
pertaining to the imports, purchases and supplies during any tax period or periods, in such format as may
be specified.]
458
[***]

452 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on
28th October, 2009
453 The words “in lieu of the audit report” was omitted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June,
2010) effective from 5th June, 2010
454 The words, figures, letter and brackets “along with the amount of further tax as per provision of sub-section (IA) of
section 3 if applicable” was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
455 The words “in lieu of the audit report” was omitted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June,
2010) effective from 5th June, 2010
456 The words, figures, letter, and brackets “along with the amount of further tax as per provision of sub-section (IA) of
section 3 if applicable” was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
457 Sub-section (5) was added vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
458 Section 26A was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004). At the time of omission
Section 26A was as under:--
26A-i
[26A. Turnover tax return.-(1) Every person required to pay turnover tax shall furnish a true and correct return in
the prescribed form to the Office of the Collector having jurisdiction indicating the value of supplies made in
a tax period, the tax paid and such other information as may be prescribed.
[26A-i Section 26A was inserted vide the Finance Act, 1996 (IX of 1996)]
26A-ii
[(2) A return for the period or any part of the period from the 1st January to the 31st March shall be
furnished on or before the 26A-iii[l5th] April, in that year.
[26A-ii Substituted for sub-sections (2) and (3) vide the Finance Act, 1997. At the time of substitution sub-sections
(2) and (3) were as under:--
“(2) A return for the period (or any part of the period) from the 1st January to the 30th June in each year
shall be made on or before the 20th July, in that year
(3) A return for the period or any part of the period) from the 1st July to the 31 December in a year
shall be made on or before the 20th January in the following year”
[26A-iii Substituted for the figure “20th” vide Finance Act, 1998 (III of 1998)]
(3) A return for the period or any part of the period from the 1st April to the 30th June shall be
furnished on or before the 26A-iv[l5th] July, in that year.]
[26A-iv Substituted for the figure “20th” vide Finance Act, 1998 (III of 1998)]
(4) A return for the period or any part of the period from the 1st July to the 30th September shall be
furnished on or before the 26A-v[ 15th] October, in that year.
[26A-v Substituted for the figure “20th” vide Finance Act, 1998 (III of 1998)]
(5) A return for the period or any part of the period from the 1st October to the 31st December shall be
furnished on or before the 26A-vi[15th] January, in the following year.]
[26A-vi Substituted for the figure “20th” vide Finance Act, 1998 (III of 1998)]
26A-vii
[(6) Notwithstanding the provisions of this section, a retailer required to pay turnover tax shall furnish
not later than due date a true and correct return in the prescribed form to the designated branch of
the bank specified by the Board.]
[26A-vii Sub-section (6) added vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000 promulgated on 24th
May, 2000]

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459
[26AB. Extension of time for furnishing returns.-(1) A registered person required to furnish a return
under section 26 may apply, in writing, to the Commissioner for an extension of time to furnish the
return.
(2) An application under sub-section (1) shall be made by the due date for furnishing the
return in terms of section 2(9) for the period to which the application relates.
(3) Where an application has been made under sub-section (1) and the Commissioner is
satisfied that the applicant is unable to furnish the return to which the application relates by the due date
because of-
(a) absence from Pakistan;
(b) sickness or other misadventure; or
(c) any other reasonable cause,
the Commissioner may, by order in writing, grant the applicant an extension of time for
furnishing the return.
(4) An extension of time under sub-section (3) shall not exceed fifteen days from the due
date for furnishing the return, unless there are exceptional circumstances justifying a longer extension of
time:
Provided that where the Commissioner has not granted extension for furnishing the return under
sub-sections (3) or (4), the Chief Commissioner may on an application made by the registered person for
extension or further extension, as the case may be, grant extension or further extension for a period not
exceeding fifteen days, unless there are exceptional circumstances justifying a longer extension of time.
(5) An extension or further extension of time granted under sub-sections (3) or (4), as the
case may be, shall not, for the purpose of charge of default surcharge under section 34, change the due
date for payment of sales tax under section 6.]
460
[***]
26A-viii
[(7) An enrolled person may file a revised return to correct any omission or wrong declaration made in
a return file under sub-section (I) or sub-section (6)
(8) Notwithstanding the penalties prescribed in section 33, if a enrolled person wishes to file revised
return voluntarily along with deposit of the amount of tax short paid or amount of tax evaded along
with additional tax, whenever it comes to his notice before receipt of notice of audit, no penalty
shall be recovered from him.]
[26A-viii Sub-sections (7) & (8) were added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
Provided that in case the enrolled person wishes to deposit the amount of tax as pointed out by the
officer of Sales Tax during the audit, or at any time before issuance of the show cause notice in lieu of the
audit report. he may deposit the evaded amount of tax, additional tax under section 34. and twenty-five per
cent of the penalty payable under section 33 along with the revised return:
Provided further that in case the enrolled person wishes to deposit the amount after Issuance of
show cause notice, he shall deposit the evade, amount of sales tax along with the amount of further tax as per
provision sub-section (IA) of section 3, if applicable, additional tax under section 34 and full amount of the
leviable penalty under section 33 along with the-revise return and thereafter, the show cause notice, shall
stand abated.]
459 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
460 Section 26AA was omitted vide the Finance Act, 2008 (I of 2008), assented on 26th June 2008. At the time of omission
section 26AA was as under:--
“26AA Retail Tax Return.-(1) Every registered retailer making taxable supplies shall furnish not later than due date
a true and correct return in the prescribe form to the designated branch of the bank specified by the Board.
(2) If there is a change in the rate of tax during a tax period, a separate return respect of each portion of
tax period, showing the application of different rat of tax, shall be furnished.]
26AA-i
[(3) A registered retailer may file a revised return to correct any omission wrong declaration made in a
return filed under sub-section (I) or sub-section (2):
[26AA-i Sub-section (3) added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]

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461
[27. Special Returns.-In addition to the return specified under section 26--
(a) a person registered 462[ 463[***] under this Act] shall furnish special return within such
date and in such form indicating information such as quantity manufactured or produced,

26AA-ii
[(4) Notwithstanding the penalties prescribed in section 33 if a registered retail wishes to file a revised
return voluntarily along with deposit of the amount tax short paid or amount of tax evaded along
with 26AA-iii[default surcharge whenever it comes to his notice, before receipt of notice of audu, no
pena shall be recovered from him:
[26AA-ii Sub-section (4) added vide the Finance Act, 2003 (I of 2003) “assented on 16th June, 2003]
[26AA-iii Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005) assented on 29th June,
2005]
Provided that in case the registered retailer wishes to deposit the amount of tax as pointed out by
the officer of Sales Tax during the audit, or any time before issuance of the show cause notice in lieu of the
audit report, he may deposit the evaded amount of tax, 26AA-iv[default surcharge] under section 34, and
twenty-five per cent of the penalty payable under section 33 along with the revised return:
[26AA-iv Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005]
Provided further that in case the registered retailer wishes to deposit the amount after issuance of
show cause notice, he shall deposit the evaded amount of sales tax 26AA-v[***] 26AA-vi[default surcharge]
under section 34, and full amount of the leviable penalty under section 33 along with the revised return and
thereafter, the show cause notice, shall stand abated.”
[26AA-v The words, figures, letter, brackets and comma “along with the amount of further tax as per provision of sub-
section (I A) of section 3, if applicable” omitted vide the Finance Act, 2004 (II of 2004), assented on 30th
June, 2004]
[26AA-vi Substituted the words “additional tax” were the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005]
Earlier, the Section 26AA was substituted vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000) promulgated
on 24th May, 2000. At the time of substitution Section 26AA was as under:--
26AA-vii
[26AA. Retail Tax Return,-- 26AA-viii[(I) Every registered retailer making taxable supplies shall furnish
a true and correct return in the prescribed form to the designated branch of the bank specified by
the Board.]
[26AA-vii Section 26AA was inserted vide the Finance Act, 1997 (XXII of 1997).]
[26AA-viii Sub-section (I) was substituted vide Finance Act, 1998 (III of 1998). At the time of substitution sub-
section (I) was as under:--
“(1) Every person required to pay retail tax shall furnish a true and correct return in the prescribed
form to the office of the Collector having jurisdiction indicating the value of supplies made in a tax
period, the tax paid and such other information as may be prescribed.”
(2) A return for the period or any part of the period from the 1st January to the 31st March shall be
furnished on or before the 26AA-ix[15th] April, In that year.
(3) A return for the period or any part of the period from the 1st April to the 30th June shall be
furnished on or before the 26AA-ix[15th] July in that year.
(4) A return for the period or any part of the period from the 1st July to the 30th September shall be
furnished on or before the 26AA-ix[15th] October, In that year.
(5) A return for the period or any part of the period from the 1st October to the 31st December shall be
furnished on or before the 26AA-ix[15th] January in the following year.]
[26AA-ix Substituted for the figure “20th” vide Finance Act, 1998 (III of 1998)]
26AA-x
[(6) If there is a change in the rate of tax during a tax period, a separate return in respect of each
portion of tax period, showing the application of different rates of tax, shall be furnished.]
[26AA-x Sub-section (6) added vide Finance Act, 1998 (I of 1998)]
461 Section 27 was substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution Section 27 was
as under:--
“27 Special return.-In addition to the return specified in 27-i[sections 26. 26A and 26AA] the Collector may
require an) person weather registered or not. To furnish a return (whether on his own behalf or as an agent of
trustee) in a prescribed form and such person shall furnish the return not later than the date specified in this
regard.”
[27-i Substituted the word and figure “section 26” vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000)
promulgated on 24th May, 2000]
462 Substituted the words and figure “under section 14” vide the Sales Tax (Amendment) Ordinance, 2000 (XLII of 2000)
made on 5th September, 2000
463 The words “or enrolled” was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004

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 purchases made, goods supplied or payment of arrears made, etc. for such period as the
Board may, by a notification in official gazette, specify; and
(b) the 464[Commissioner] may require any person whether, registered or not, to furnish a
return(whether on his own behalf or as an agent or trustee) in a prescribed form and such
person shall furnish the return not later than the date specified in this regard.]
465
[28. Final return.-If a person applies for de-registration in terms of section 21, he shall before such de-
registration, furnish a final return to the 466[Commissioner] in the specified form in such manner and at
such time as directed by the 467[Commissioner].]
29. Return deemed to have been made.-A return purporting to be made on behalf of a, person
468
[by his duly appointed representative] shall, for all purposes, be deemed to have been made by such
person or under his authority unless proved to the contrary.

CHAPTER-VI
APPOINTMENT OF 469[OFFICERS OF
SALES TAXI AND THEIR
POWERS'
470
[30. Appointment of authorities.-(1) For the purposes of this Act, the Board may, appoint in relation
to any area, person or class of persons, any person to be--

464 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010) 5th June,
2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
465 Section 28 substituted vide the Finance Act, 1996 (IX of 1996). Section 28 at the time of substitution was as under:--
“28 Final Return.-If a person ceases to be a registered person he shall, not later than one month after such
cessation furnish a final return to the local Sales Tax Office in a prescribed form in respect of the last lax
period or part thereof during which he conducted his taxable activity before he ceased to be a registered
person.”
466 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
467 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
468 Inserted vide the Finance Act, 1996 (IX of 1996)
469 Any reference to “Sales Tax Officer” shall be construed as reference to an “officer of Inland Revenue” vide virtue of
Section 72A of the Sales Tax Act, 1990
470 Section 30 was substituted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010), effective from 5th
June, 2010. Earlier this section was substituted vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009. At the time of substitution Section 30 was as under:--
“30 Appointment of Officers.-For the purposes of this Act, the Board may by notification in the official Gazette,
appoint in relation to any area any case or class of cases specified in the notification, any person to be--
(a) a Collector of Sales Tax;
(b) a Collector of Sales Tax 30-i[(Appeals)];
(c) an Additional Collector of Sales Tax;
(d) a Deputy Collector of Sales Tax;
(e) an Assistant Collector of Sales Tax;
(f) a Superintendent of Sales Tax;
30-ii
[(ff) a Senior Auditor of Sales Tax:]
(g) an officer of sales tax with any other designation.
[30-i Substituted the word “Adjudication” vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005].
Earlier

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 (a) a Chief Commissioner Inland Revenue;
(b) a Commissioner Inland Revenue;
(c) a Commissioner Inland Revenue (Appeals);
(d) an Additional Commissioner Inland Revenue;
(e) a Deputy Commissioner Inland Revenue;
471
[(ea) District Taxation Officer Inland Revenue;]
(f) an Assistant Commissioner Inland Revenue;
472
[(fa) Assistant Director Audit Inland Revenue;]
(g) an Inland Revenue Officer;
(h) a Superintendent Inland Revenue;
(i) an Inland Revenue Audit Officer; 473[***]
474
[(ia) an Inspector Inland Revenue; and]
(j) an officer of Inland Revenue with any other designation:
(2) The Chief Commissioner Inland Revenue and Commissioner Inland Revenue (Appeals)
shall be subordinate to the Board and Commissioner Inland Revenue shall be subordinate to the Chief
Commissioner Inland Revenue.
475
[(2A) The Chief Commissioners Inland Revenue shall perform their functions in respect of
such persons or classes of persons or such areas as the Board may direct.
(2B) The Commissioners Inland Revenue shall perform their functions in respect of such
persons or classes of persons or such areas as the Chief Commissioner, to whom they are sub-ordinate,
may direct.]
(3) Additional Commissioner Inland Revenue, Deputy Commissioners Inland Revenue476[,
District Taxation Officer Inland Revenue], Assistant Commissioner Inland Revenue477[, Assistant
Director Audit Inland Revenue], Superintendent Inland Revenue, Inland Revenue Audit Officer, Inland

the word “Adjudication” was Substituted the word “(Appeals)” vide the Sales Tax (Amendment) Ordinance,
2001 (VII of 2001), assented on 7th February, 2001
[30-iii Clause (ff) was inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008] Earlier, the
Section 30 was substituted vide the Finance Act, 1996 (IX of 1996) Section 30 at the time of substitution was
as under:-
“30 Appointment of Officers.-For the purposes of this Act, the Board may, vide Notification in the
official Gazette, appoint, in relation to any area. any case or class of cases specified in the
Notification, any person to be;
(a) a Collector of Sales Tax;
(b) a Collector of Sales Tax (Appeals);
(c) a Deputy Collector of Sales Tax;
(d) an Assistant Collector of Sales Tax;
(e) a Superintendent of Sales Tax; or
(f) an officer of sales tax with any other designation.”
471 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
472 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
473 The word “and” was omitted vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011
474 Clause (ia) was inserted vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011
475 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
476 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
477 Inserted vide the Finance Act, 2017 assented on 19th June, 2017

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Revenue Officer 478[, Inspector Inland Revenue], and officer of Inland Revenue with any other
designation shall be subordinate to the Commissioner Inland Revenue and shall perform their functions in
respect of such persons or classes of persons or such areas as the Commissioners, to whom they are
subordinate, may direct.
(4) Deputy Commissioner Inland Revenue 479[, District Taxation Officer Inland Revenue],
Assistant Commissioner Inland Revenue 480[, Assistant Director Audit Inland Revenue], Superintendent
Inland Revenue, Inland Revenue Audit Officer, Inland Revenue Officer 481[, Inspector Inland Revenue,]
and officer of Inland Revenue with any other designation shall be subordinate to the Additional
Commissioner Inland Revenue.]
482
[30A.Directorate General (Intelligence and Investigation), Inland Revenue.-(1) The Directorate
General (Intelligence and Investigation) Inland Revenue shall consist of a Director General and as many
Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the
Board may, by notification in the official Gazette, 483[appoint].
(2) The Board may, by notification in the official Gazette,-
(a) specify the functions and jurisdiction of the Directorate General and its officers; and
(b) confer the powers of authorities specified in section 30 upon the Directorate General and
its officers.]
484
[30AB. Tax Fraud Investigation Wing Inland Revenue.-(1) There shall be established a wing to be
known as Tax Fraud Investigation Wing-Inland Revenue.
(2) The functions of the tax fraud Investigation Wing Inland Revenue shall be to detect,
analyze, investigate, combat and prevent tax fraud.
(3) The tax fraud Investigation Wing Inland Revenue shall comprise Fraud Intelligence and
Analysis Unit, Fraud Investigation Unit, Legal Unit, Accountants Unit, Digital Forensic and Scene of
Crime Unit, Administrative Unit or any other Unit as may be notified by the Board through notification in
the official Gazette.
(4) The tax fraud Investigation Wing Inland Revenue shall consist of a Chief Investigator
and as many following officers, as may be notified by the Board-
(a) Senior investigators, investigators, Junior investigators or any other officer of Inland
Revenue with any other designation;
(b) a Senior Forensic Analyst and as many Forensic Analysts and Junior Forensic Analysts;
and
(c) a Senior Data Analyst and as many Data Analysts and Junior Data Analysts.
(5) The Board may, by notification in the official Gazette, --

478 The comma and words inserted vide the Finance Act, 201I (XVI of 20II), assented on 29th June, 2011
479 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
480 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
481 The comma and words were inserted vide the Finance Act, 20 II (XVI of 20II), assented on 29th June, 2011
482 Substituted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. Section 30A at the time of substitution
was asunder:-
30A. Directorate General, (Intelligence and Investigation) Inland Revenue].-The Directorate General (Intelligence
and Investigation) Inland Revenue shall consist of a Director General and as many Directors, Additional Directors,
Deputy Directors and Assistant Directors and such other officers as the Board, may by notification in the official
Gazette, appoint.
483 Substituted the word “Post,” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
484 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

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 (a) specify the functions and jurisdiction of the Tax Fraud Investigation Wing Inland
Revenue and its Units and its officers; and
(b) confer the powers of authorities specified in section 30 upon the tax fraud Investigation
Wing Inland Revenue and its officers at clause (a) of sub-section 4.
(6) Nothing contained in this section shall prevent the authorities appointed under section 30
or any other authority or officer conferred with the power and functions of authorities appointed under
section 30 from conducting investigation and prosecution proceedings under Chapter-VII of the Act.]
485
[30B. Directorate General 486[***] Internal Audit.-The Directorate General 487[***] Internal Audit
shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and
Assistant Directors and such other officers as the Board, may by notification in the official Gazette,
appoint.
488
[30c. 489[Inland Revenue Services Academy].-The 490[Inland Revenue Services Academy] shall
consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant
Directors and such other officers as the Board, may by notification in the official Gazette, appoint.
491
[30CA. Directorate General of Digital Initiatives.-The Directorate General of Digital Initiatives shall
consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant
Directors and such other officers as the Board may, by notification in the official Gazette, appoint.]
492
[30D. Directorate General of Valuation 493[***].-The Directorate General of Valuation 494[***] shall
consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant
Directors and such other officers as the Board, may by notification in the official Gazette, appoint.
495
[30DD. Directorate of Post Clearance Audit.-The Directorate of Post clearance Audit shall consist of
a Director and as many Additional Directors, Deputy Directors, Assistant Directors and such other
officers as the Board may, by notification in the official Gazette appoint.]
496
[30DDD. Directorate General of Input Output Co-efficient Organization.-The Directorate General
of Input Output Co-efficient Organization (IOCO)-Inland Revenue shall consist of a Director General and
as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as
the Board may, by notification in the official Gazette, appoint.]

485 Section 30B was inserted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
486 The words “of Inspection and” was omitted vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
487 The words “of Inspection and” was omitted vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
488 Section 30C was inserted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
489 Substituted the words “Directorate General of Training and Research” vide the Finance Act, 2022 dated on 30th June,
2022
490 Substituted the words “Directorate General of Training and Research” vide the Finance Act, 2022 dated on 30th June,
2022
491 Section 30CA was substituted vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023. At the time of
substitution section 30CA was as under:-
“30CA. Directorate General of Digital Invoicing and Analysis.-The Directorate General of Digital Invoicing and
Analysis shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and
Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint”
492 Section 30D was inserted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
493 The words “and Post Clearance Audit” was omitted vide the Finance Act, 2007 (IV of 2007), assented on 30th June,
2007
494 The words “and Post Clearance Audit” were omitted vide the Finance Act, 2007 (IV of 2007), assented on 30th June,
2007
495 Section 30DD was inserted vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
496 Inserted vide the Finance Act, 2016

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497
[30DDDA. Directorate-General of law.-(1) The Directorate-General of law shall consist of a Director
General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors, Law Officers
and such other officers as the Board may, by notification in the official Gazette, appoint.
(2) The Board may, by notification in the official Gazette, specify the functions, jurisdiction
and powers of the Directorate-General of law.]
498
[30E. Powers and Functions of Directorate, etc.-The Board may, by notification in the official
Gazette, specify the functions, jurisdiction and powers of the Directorates General as specified in - the
preceding sections and their officers by notification in the official Gazette.]
31. Powers.-An officer of 499[Inland Revenue] appointed under Section 30 shall exercise such
powers and discharge such duties as are conferred or imposed on him under this Act; and he shall also be
competent to exercise all powers and discharge all duties conferred or imposed upon any officer
subordinate to him:
Provided that, notwithstanding anything contained in this Act or the rules, the Board may, by
general or special order, impose such limitations or conditions on the exercise of such powers and
discharge of such duties as it deems fit.
500
[32. Delegation of powers.- 501[(1) The Board or the Chief Commissioner with the approval of the
Board. may, ,by an order and subject to such limitations or conditions as may be specified therein.
empower by name or designation.-

497 Inserted vide the Tax Laws (Amendment) Act, 2024 (Act No. V of 2024) dated 9th May, 2024.
498 Section 30E was inserted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
499 Substituted the words “Sales Tax” vide the Finance Act, 20I0 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October. 2009
500 Section 32 substituted vide the Finance Act, 1996 (IX of 1996). Section 32 at the time of substitution was asunder:--
“32 Delegation of powers.-(1) The Board may, by Notification in the official Gazette, and subject to such
limitations or condition if any, as may be specified therein, empower by name or designation:
(a) any Deputy Collector of Sales Tax or Assistant Collector of Sales Tax to exercise any of the
powers of a Collector of Sales Tax under this Act;
(b) any Assistant Collector of Sales Tax to exercise any of the powers of a Deputy Collector of Sales
Tax under this Act:
(c) any other officer of sales tax to exercise any of the powers of an Assistant Collector of Sales Tax
under this Act”
(2) Unless the Board In any case otherwise directs the Collector may authorise any officer subordinate to him to
exercise throughout his jurisdiction. or within any specified area, any of the powers of the Collector or of any
other officer of sales tax under this Act
(3) The officer to whom any powers are delegated under this section shall not further delegate the said powers.”
501 Sub-section (1) was substituted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th
June, 2010. At the time of substitution sub-section (1) was as under:--
(1) The Board may, by notification in the official Gazette and subject to such limitations or conditions as may be
specified therein. empower by name or designation--
32-i
[(a) any Additional Commissioner Inland Revenue or Deputy Commissioner Inland Revenue to
exercise any of the power of a Commissioner Inland Revenue under this Act;
(b) any Deputy Commissioner Inland Revenue or Assistant Commissioner Inland Revenue to exercise
any of the powers of an Additional Commissioner Inland Revenue under this Act;
(c) any Assistant Commissioner Inland Revenue to exercise any of the powers of a Deputy
Commissioner Inland Revenue under this Act; and
(d) any other officer of Inland Revenue to exercise any of the powers of an Assistant Commissioner
Inland Revenue under this Act.]
[32-i Clauses (a) to (d) was substituted vide the Finance (Amendment) Ordinance, 2010 (III of 2010) promulgated
on 6th February.20I0). Earlier these clauses were substituted vide the Finance (Amendment) Ordinance, 2009
(XXII of 2009) promulgated on 28th October. 2009). At the time of substitution' Clauses (a) to (d) were as
under:--

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 (a) any Additional Commissioner Inland Revenue or Deputy Commissioner Inland Revenue
to exercise any of the powers of a Commissioner Inland Revenue under this Act;
(b) any Deputy Commissioner Inland Revenue or Assistant Commissioner Inland Revenue to
exercise any of the powers of an Additional Commissioner Inland Revenue under this
Act;
(c) any Assistant Commissioner Inland Revenue to exercise any of the powers of, a Deputy
Commissioner Inland Revenue under this Act;
(d) any other officer of Inland Revenue to exercise any of the powers of an Assistant
Commissioner Inland “Revenue under this Act.]
502
[***]
(3) The officer to whom any powers are delegated under this section shall not further
delegate such powers.]
503
[32A. 504[Audit by Special Audit Panels].-505[(1) The Board may appoint as many special audit panels
as may be necessary, comprising two or more members from the following.-
(a) an officer or officers of Inland Revenue:
(b) a firm of chartered accountants as defined under the Chartered Accountants Ordinance,
1961 (X of 1961);
(c) a firm of cost and management accountants as defined under the Cost and Management
Accountants Act, 1966 (XIV of 1966); or
(d) any other person as directed by the Board, to conduct audit of a registered person or
persons, including audit of refund claims and forensic audit and the scope of such audit
shall be determined by the Board or the Commissioner inland Revenue on a case-to-case

(a) any Additional Collector of Sales Tax or Deputy Collector of Sales Tax to exercise any of the
powers of a Collector of Sales Tax under this Act;
(b) any Deputy Collector of Sales Tax or Assistant Collector of Sales Tax to exercise any of the powers
of an Additional Collector of Sales Tax under this Act;
(c) any Assistant Collector of Sales Tax to exercise any of the powers of a Deputy Collector of Sales
Tax under this Act; and
(d) any other officer of Sales Tax to exercise any of the powers of an Assistant Collector of Sales Tax
under this Act.”
502 Sub-section (2) was omitted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th
June, 2010. At the time of omission Sub-section (2) was as under--
“(2) Unless the Board in any case otherwise directs, the Jar Commissioner may authorize any officer subordinate
to him to exercise within any specified area, any of the powers of the 32-ii[Commissioner] or of any other officer of 32-
iii
[inland Revenue] under this Act.”
[32-ii Substituted the word “Collector” vide the Finance (Amendment) Ordinance.2010 (III of 2010) promulgated
on 6th February, 2010).Earlier the same amendment was made the Finance (Amendment) Ordinance, 2009
(XXII of 2009) promulgated on 28th October, 2009
[32-iii Substituted the words “Sales Tax” vide the Finance (Amendment) Ordinance.2010 (III of 2010) promulgated
on 6th February. 2010). Earlier the same amendment was made the Finance (Amendment) Ordinance, 2009
(XXII of 2009) promulgated on 28th October, 2009
503 Section 32A was inserted vide Finance Act, 1998 (III of 1998)
504 The words “Special Audit by Chartered Accountants or Cost Accountants” were substituted vide Finance Act, 2015
505 Sub-section (1) was Substituted vide Finance Act, 2015. At the time of substitution sub-section (1) was as under:-
(1) The Board or the Commissioner may, appoint a Chartered Accountant as defined under Chartered
Accountants Ordinance, 1961 (X of 1961) or a firm of Chartered Accountants or a Cost and Management
Accountant within the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966) or a firm
of Cost and Management Accountants, for conducting special audit of records of registered person:

[74]
 basis in addition, the Board may, where it considers appropriate, also get such audit
conducted jointly with similar audits being conducted by provincial.]
506
[Provided that the Board 507[or the Commissioner] may, 508[***] appoint a firm of Chartered
Accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961), or a Cost and
Management Accountant within the meaning of the Cost and Management Accountants, Act, 1966 (XIV
of 1966), or a firm of Cost and Management Accountants to conduct audit of refund claims.]
(2) Notwithstanding that records of a registered person have been audited by an officer
appointed under section 30, the Board or a 509[Commissioner] may direct 510[special audit panel]
appointed under sub-section (1) to audit the records of any registered person.
511
(3) [Every member of special audit panel] appointed under sub-section (1), shall have the
powers of an officer of 512[Inland Revenue] under sections' 37 and 38.]
513
[(4) Each special audit panel shall be headed by a chairman who shall be an officer of Inland
Revenue.
(5) If any one member of the special audit panel, other than the chairman, is absent from
conducting an audit, the proceedings of the audit may continue and the audit conducted by the special
audit panel shall not be invalid or be called in question merely on the ground of such absence.
(6) The Board may prescribe rules in respect of constitution, procedure and working of
special audit panel.]
514
[32B. Appointment of experts and auditors.-(1) The Board or the Commissioner may appoint as
many experts as it or the Commissioner considers necessary for the purposes of this Act, including for the
purposes of assistance in audit, investigation, litigation or valuation.
(2) The Board may appoint as many auditors as it may deem fit, through direct engagement
or through a third party including a pay roll firm for the purposes of this Act, and confer such powers as
may be deemed necessary to assist the authorities mentioned in clauses (a) to (f) of sub-section (1) of
section 30 of this Act and clauses (a) to (f) of sub-section (1) of section 29 of the Federal Excise Act,
2005, as per the terms, conditions, limitations and restrictions as may be prescribed.]
515
[***]

506 Proviso was inserted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006
507 The words were inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th June,
2010
508 The words and comma “by notification on the official Gazette.” were omitted vide the Finance Act, 2010 (XVI of 20I 0)
509 Substituted the word “Collector” vide the Finance Act, 20 I 0 (XVI of 20 10), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III
of2010) promulgated on eth February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009)
promulgated on 28th October. 2009
510 Substituted for “an auditor” vide Finance Act, 2015
511 Substituted for “an auditor” vide Finance Act, 2015
512 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 20I0) effective
from 5th June, 20I0. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (III of
20I0) promulgated on 6th February, 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October, 2009
513 Added vide Finance Act, 2015
514 Inserted vide Finance Act, 2025 dated 29th June, 2005
515 Section 32AA was omitted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of omission
Clause 32AA was as under:--
32AA-i
[32AA. Audit of Retailer.-(1) An officer of Sales Tax not below the rank of auditor or deputy superintendent
may, subject to such conditions and limitations as may be imposed by the Board or Collector, carry out audit of any
retailer assigned to him by Assistant Collector and such audit may include surveillance, video filming, gathering of
information through pretending or actual customer of the taxable activities of such retailer.

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 Chapter - VII
516
[OFFENCES, PENALTIES AND PUNISHMENT]
517
[33. [Offences, Penalties and Punishment].- 519[***] Whoever commits any offence described in
518

column (1) of the Table below shall, in addition to and not in derogation of any punishment to which he

(2) A retailer who pays 32AA-ii[***] retail tax under section 3AA may in lieu of audit of his business by
an officer of Sales Tax, opt for audit by a Chartered Accountant or a Cost and Management
Accountant authorized 32AA-iii[Board] in terms of section 32A provided he pays half of the lee
payable to such Chartered Accountant or, as the case may be Cost and Management Accountant.]
[32AA-i Section 32AA was inserted vide the Tax Laws Amendment Ordinance, 2000 (XVI of 2000) promulgated on
24th May, 2000]
[32AA-ii The words, figure and letter “turnover tax under section 3A or was omitted vide the Finance Act, 2004 (II of
2004), assented on 30th June, 2004]
[32AA-iii Substituted the words “Central Board of Revenue” vide the Finance Act, 2007 (IV of 2007), assented on 30th
June, 2007]
516 Substituted the words “Offences and penalties” vide the Finance Act, 2025, dated 29th June, 2025
517 Section 33 was substituted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005). At the time of
substitution Section 33 was as under:--
33-i
[33 General Penalties.-(1) Any person who fails to furnish a return within the due date shall pay a penalty of 33-
ii
[five thousand] rupees 33-iii[:]
[33-i Substituted the words ia[two thousand and five hundred]” vide Tax Laws (Amendment) Ordinance, 2001 (XIII
of 2001, made on 15th March. 2001]
[33-ii Substituted the words “five thousand” vide the Finance Ordinance, 2000 (XXI of 2000)]
[33-iii Substituted for the full stop vide the Finance Act; 2003 (1 of 2003), assented on 16th June, 2003]
33-iv
[Provided that in case a person files a return within fifteen days of the due date, he shall pay a penalty of
one hundred rupees for each day of default.]
[33-iv Proviso was added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
(2) An y person who--
(a) fails to issue an invoice when required under this Act;
(b) unauthorizedly issues an invoice in which an amount of tax is specified;
(c) fails to notify the changes of material nature in the particulars of registration of taxable
activity;
33-v
[(cc) fails to deposit the amount of tax due or any part thereof in the time or manner lard down
under this Act or rules or orders made there under.]
[33-v Clause (cc) was inserted vide the Finance Act, 1997 (XXII of 1997)]
(d) repeats erroneous calculations in the return during a year whereby amount of tax less
than the actual tax due is paid, shall pay a penalty of 33-vi[five] thousand rupees or 33-
vii
[three] per cent of the amount of the tax involved, whichever is higher:
[33-vi Substituted the word “ten” vide the Finance Ordinance, 2000 (XXI of 2000)]
[33-vii Substituted the word “five” vide the Finance Ordinance, 2000 (XXI of 2000)]
33-viii
[Provided that in case the amount of sales tax payable in the return does not exceed five
thousand rupees, he shall pay a penalty of one thousand rupees:]
[33-viii Proviso was inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
Provided 33-ix[further] that no penalty shall be imposed when any miscalculation is made for the
first time during a year
[33-ix The word inserted vide the Finance Act, 2004 (II of2004), assented on 30th June, 2004]
(3) Any person who--
(a) is required to apply for registration 33-x[***] under this Act fails to make an application
33-xi
[for registration before making taxable supplies.]
(b) fails to maintain records required under this Act or the rules made there under 33-xii[; or]
[32-x The words “or enrollment” was omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[32-xi Substituted the words and semicolon “within the specified period; or” vide the Finance Act, 2004 (II of
2004), assented on: 30th June, 2004]
[32-xii Substituted for the comma vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
33-xiii
[(c) fails to furnish the information required by the Board through a notification issued under
sub-section (5) of section 26 shall pay a penalty of 33-xiv[ten1 thousand rupees or 33-
xv
[five] per cent of the amount of tax involved, whichever is higher
[32- xiii Clause (c) was inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[32-xiv Substituted for the 'word “twenty” vide the Finance Ordinance, 2000 (XXI of 2000]
[32-xv Substituted the word “ten” vide the Finance Ordinance, 2000 (XXI of 2000)]

[76]
 (4) Any person who--
(a) submits a false or forged document to any officer of Sales Tax;
(b) destroys, alters, mutilates or falsifies the records;
(c) knowingly or fraudulently makes false. Statement false declaration false representation,
false personification, gives any false information or issues or uses a document which is
forged or false;
(d) denies or obstructs the access of an authorised officer to business premises, registered
office or to any other place where records are kept;
(e) otherwise obstructs the authorised .officer in the performance of his official duties; or

(f) commits, causes to commit or attempts to commit the tax fraud shall pay a penalty of 33-
xvi
[twenty five] thousand rupees or 33-xvii[one hundred] per cent of the amount of tax
involved, whichever is higher
[32-xvi Substituted the word “fifty” vide the Finance Ordinance, 2000 (XXI of 2000)]
[32-xvii Substituted the word “thirty” vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. Earlier,
the word “thirty” was Substituted the word “fifty” vide the Finance Ordinance, 2000 (XXI of 2000)]
(5) Any person who causes or attempts to commit or abets the commission of any of the acts specified
in the' preceding sub-sections shall pay the penalties specified therein,
(6) Where any of the acts specified in sub-sections (3) and (4) of this section is committed by, a
corporate body or an association of persons, whether incorporated or not, the Chief Executive of
that, body shall pay a penalty of 33-xix[twenty five] thousand rupees, in addition to other penalties
adjudged against him under any other provisions of this Act.
[32-xix Substituted the word “fifty” vide the Finance Ordinance, 2000 (XXI of 2000)]
33-xx
[(6A) A registered 33-xxi[***] person or retailer who without any reasonable cause fails to comply with
the provisions of section 25, shall pay,--
(a) for failing to produce the record on receipt of first notice, a penalty of two thousand five
hundred rupees;
(b) for failing to produce the record on receipt of second notice a penalty of ten thousand
rupees; and
(c) for failing to produce the record on receipt of third notice, a penalty of fifty thousand
rupees.]
[32-xx Sub-section (6A) inserted vide the Finance Act, 2003 (1 of 2003), assented on 16th June, 2003]
[32-xxi The words “or enrolled” omitted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004)]
(7) Any person who contravenes any of the provision of this Act for which no penalty has, specifically,
been provided in this Act, shall pay a penalty of 33-xxii[two thousand and five hundred] rupees or 33-
xxiii
[three] per cent of the amount of tax involved whichever is higher.]
[32-xxii Substituted the word “five thousand” vide the Finance Ordinance, 2000 (XXI of 2000)]
[32-xxiii Substituted the word “five” vide the Finance Ordinance, 2000 (XXI of 2000)]
Initially, Section 33 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution section 33 was
as under:--
“33 General Penalties.-(1) Any person who—
(a) is required to apply for registration under this Act falls to apply for registration: or
(b) fails to furnish a return within the due date: or
(c) , fails to notify the change in the particulars of registration: 33-xxiv[*** ]
33-xxv
[***]
shall be liable to a penalty 33-xxvi[which may extend to one thousand rupees per day for such failure,
but shall not be less than five hundred rupees per day].
[33-xxiv The word “or” was omitted vide Finance Act, 1993]
[33-xxv Clause (d) was omitted vide Finance Act, 1993. Clause (d) was as under:--
“(d) contravenes any other provision of this Act;”
[33-xxvi Substituted for “of five thousand rupees” vide Finance Act, 1994 (XII of 1994)]
(2) Any person who-
(a) does not issue a tax invoice or issues a tax invoice which is incorrect in material
particulars; or
(b) furnishes a return which is incorrect in material particulars; or
(c) submits a false or forged document to any office of the Sales Tax and thereby evades or
attempts to evade payment of tax; or
(d) does not maintain records required under the Act or the rules made there under, or
destroys, alters, mutilates or falsifies any such records or does not retain the records as
required under the Act; or
(e) knowingly makes false statement, false declaration or gives any false information; or

[77]
 may be liable under any other law, be liable to the penalty mentioned against that offence in column '(2)
thereof:--

TABLE

Offences. Penalties. Section of the Act

to which offence
has reference
(1) (2) (3)
1. Where any person fails to furnish a such person shall pay a penalty 520[and 26
return within the due date Punishment] of 521[ten] thousand rupees:
Provided that in case a person files a return
within 522[ten] days of the due date, he shall
pay a penalty 523[and Punishment] of 524[two]
hundred rupees for each day of default.
525
[1A. Where any online Such person shall be liable to pay: 26
marketplace, payment intermediary or (i) Penalty of three lac rupees for the
courier fails to furnish prescribed first default if he fails to furnish the
monthly statement within due date prescribed statement for two consecutive
months;
(ii) Penalty of one million rupees for
each subsequent default within one year.
1B. Where any online Such person shall be liable to pay: 14]
marketplace, courier allow use of its (i) Penalty of five lac rupees for first
services in the course of e-commerce default;
by unregistered persons (ii) Penalty of one million rupees for
each subsequent default.
2. Any person who fails to issue an such person shall pay a penalty 526[and 23
invoice when required under this Act. Punishment] of five thousand rupees or three
per cent of the amount of the tax involved,
whichever is higher.

(f) is not a registered person and issues an invoice in which an amount of tax is specified; or
(g) attempts to commit or abets the commission of any of the acts specified at (a) to (f)
above;
shall be liable to a penalty of twenty-five thousand rupees or 33-xxvii[the amount of tax due for the
month immediately preceding the month in which any of the acts specified in clauses (a) to (t) is committed,
whichever is higher].
[33-xxvii Substituted for “twice the amount of tax involved whichever is the greater” vide Finance Act, 1994 (XII of
1994.]
(3) Where any of the acts specified in clauses (a) to (g) of sub-section (2) is committed by a corporate
body or an association of persons whether incorporated or not, the Chief Executive of that body
shall be liable to a penalty of ten thousand rupees.
33-xxviii
[(4) Any person who contravenes any provision of this Act for which no penalty has, specifically, been
provided in this Chapter, shall be liable to a penalty of five thousand rupees.]
[33-xxviii Sub-section (4) was added vide Finance Act, 1993]
518 Substituted the words “Offences and penalties” vide the Finance Act, 2025, dated 29th June, 2025
519 The brackets and figure “(1)” was omitted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
520 Inserted vide Finance Act, 2025 dated 29th June, 2005
521 Substituted the word “five” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
522 Substituted for “fifteen” vide Finance Act, 2015
523 Inserted vide Finance Act, 2025 dated 29th June, 2005
524 Substituted the word “one” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
525 Inserted vide Finance Act, 2025 dated 29th June, 2005
526 Inserted vide Finance Act, 2025 dated 29th June, 2005

[78]
3. Any person who un-authoriz-edly such person shall pay a penalty 527[and 3,7 and 23
issues an invoice in which an amount Punishment] of ten thousand rupees or five
of tax is specified. per cent of the amount of the tax involved,
whichever is higher.
4. Any person who fails to notify the such person shall pay a penalty 528[and 14
changes of material nature in the Punishment] of five thousand rupees
particulars of registration of taxable
activity.
5. Any person who fails to deposit the such person shall pay a penalty 529[and 3,6,7 and 48
amount of tax due or any part thereof in Punishment] of ten thousand rupees or five
the time or manner laid down under per cent of the amount of the tax involved,
this Act or rules or orders made there whichever is higher:
under. Provided that, if the amount of tax or any part
thereof is paid within 530[ten] days from the
due date, the defaulter shall pay a penalty
531
[and Punishment] of five hundred rupees
for each day of default:
Provided further that no penalty532[and
Punishment] shall be imposed when any
miscalculation is made for the first time
during a year:
Provided further that if the amount of tax due
is not', paid even after the expiry of a period
of sixty days of issuance of the notice for such
payments by an officer
of 533[Inland Revenue not below the rank of
Assistant Commissioner Inland Revenue], the
defaulter shall, further be liable, upon
conviction by a Special Judge, to
imprisonment for a term which may extend to
three years, or with fine which may extend to
amount equal to the amount of .tax involved,
or with both.
6. Any person who repeats erroneous Such person shall pay a penalty 534[and 7 and 26
calculation in the return during a year Punishment] of five thousand rupees or three
whereby amount of tax less than the' per cent of the amount of the tax involved,
actual tax due is paid. whichever is higher.
7. Any person who is required to apply such person shall pay a penalty 535[and 14
for registration under this Act fails to Punishment] of ten thousand rupees or five

527 Inserted vide Finance Act, 2025 dated 29th June, 2005
528 Inserted vide Finance Act, 2025 dated 29th June, 2005
529 Inserted vide Finance Act, 2025 dated 29th June, 2005
530 Substituted for “fifteen” vide Finance Act, 2015
531 Inserted vide Finance Act, 2025 dated 29th June, 2005
532 Inserted vide Finance Act, 2025 dated 29th June, 2005
533 Substituted the words “Sales Tax not below the rank of Assistant Collector of Sales Tax” vide the Finance Act, 2010
(XVI of 2010), assented on 30th June, 2010 effective from 5th June, 20I0. Earlier the same amendment was made vide
the Finance (Amendment) Ordinance, 20I0 (III of 20I0) promulgated on 6th February. 20I0) & the Finance
(Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th October, 2009

534 Inserted vide Finance Act, 2025 dated 29th June, 2005
535 Inserted vide Finance Act, 2025 dated 29th June, 2005

[79]
make an applica-tion for registration per cent of the amount of tax involved,
before making taxable supplies. whichever is higher:
Provided that such person who is required to
get himself registered under this Act, fails to
get registered within sixty days of the
commencement of taxable activity, he shall,
further be liable, upon conviction by a Special
Judge, to imprisonment for a term which may
extend to three years, or with fine which may
extend to an amount equal to the amount of
tax involved, or with both.
8. Any person who fails to main-tain such person shall pay a penalty 536[and 22 and 24
records required under this Act or the Punishment] of ten thousand rupees or five
rules made there under. per cent of the amount of tax involved,
whichever is higher.
9. Where a registered person who, 25
without any reasonable cause, in non
compliance with the provisions of
section 25,
(a) fails to produce the record on Such person shall pay a penalty 537[and
receipt of first notice; Punishment] of five thousand rupees.
(b) fails to produce such person shall
pay a the record on. penalty of ten
thousand receipt of second rupees: and Such person shall pay a penalty 538[and
notice; and Punishment] of ten thousand rupees.
(c) fails to produce such person shall such person shall pay a penalty 539[and
pay a the record on penalty of fifty' Punishment] of fifty thousand rupees
receipt of third thousand rupees notice.
10. Any person who fails to furnish the such person shall pay a penalty 540[and 26
information requir-ed by the Board Punishment] of ten thousand rupees
through a notification issued under sub-
section (5) of section 26.
541
[*** *** ***]
12. Any person who such person shall Such person shall pay a penalty 543[and 25.38 546[, 38A and

536 Inserted vide Finance Act, 2025 dated 29th June, 2005
537 Inserted vide Finance Act, 2025 dated 29th June, 2005
538 Inserted vide Finance Act, 2025 dated 29th June, 2005
539 Inserted vide Finance Act, 2025 dated 29th June, 2005
540 Inserted vide Finance Act, 2025 dated 29th June, 2005
541 Sr. No. 11 was omitted vide Finance Act, 2025, dated 39th June, 2024. At the time of omission Sr. No. 11 was as
under:-
11. Any person who,-- Such person shall pay a penalty of twenty-five thousand 2(37) and
(a) submits a false or forged document to rupees or one hundred per cent of the amount of tax General”
any officer of Inland Revenue; or evaded or sought to be evaded, whichever is higher.
Without prejudice to the above, he shall also be liable,
(b) destroys, alters, mutilates or falsifies the upon conviction by a Special Judge to imprisonment for
records inclu-ding a sales tax Invoice; or a term which may extend to five years if the tax evaded
(c) knowingly or fraudulently makes false or sought to be evaded is less than one billion, and
statement, false declaration, false representat- which may extend to ten years if the tax evaded or
ion, false personification, gives any false sought to be evaded is one billion and above and fine
information or Issues or uses a document which may extend to an amount equal to the amount of
which is forged or false. tax evaded or sought to be evaded, or with both.

[80]
pay a 25,38l denies or obstructs penalty Punishment] of twenty five thousand rupees
40B]
of twenty five 38A and the access of an or one hundred per cent of the amount of tax
544
auth-orized officer to the business involved, whichever is higher. [Without
premises, registered office or to any prejudice to above, he shall also be liable,]
other place where records are kept, or upon conviction by a Special Judge, to
otherwise refuses access to the stocks, imprisonment for a term which may extend to
accounts or records or fails to present five years, or with fine 545[which may extend
the same when required under sections to an amount equal to the amount of tax
25, 38 542[, 38A or 40B]. evaded or sought to be evaded] or with both.
547
[13. (i) Any person who commits (i) Such person shall be liable, upon 2 (37)]
or, causes to commit tax fraud as conviction by a Special Judge, to
defined under sub-clauses (a), (b), (c), imprisonment for a term which may extend
(d), (e) or (f) of clause (37) of section upto five years. Such person shall also be
2. liable to pay the amount equal to the loss of
tax caused as confirmed by the Special
Judge from such amount reported under sub
section (11) of section 37B, including one
hundred percent penalty of tax loss and
default surcharge under section 34 of the
Act.
(ii) Any person who commits or, (ii) Such person shall be liable, upon
causes to commit tax fraud as defined conviction by a Special Judge, to
under sub-clauses (g), (h), (i), (j) or imprisonment for a term which may extend
(k) of clause (37) of section 2 upto five years. Such person shall also be
liable to pay the amount equal to the loss of
tax caused as confirmed by the Special
Judge from such amount reported under sub
section (11) of section 37B, including one
hundred percent penalty of tax loss and
default surcharge under section 34 of the
Act.
548
[13A. Any person who abets or Such person shall be liable, upon conviction 2(1), 2(37), 50A]
connives in committing tax fraud as by a Special Judge, to imprisonment for a
defined in section 2(37) or any term which may extend to five years or with
offence warranting prosecution under fine which may extend to ten million rupees,
the Act. or with both.
14. Where any person violates any such person shall pay a penalty 549[and 48
embargo placed on removal of goods in Punishment] of twenty five thousand rupees
connection with reco-very of tax. or ten per cent of the amount of the tax
involved, whichever is higher. 550[Without
prejudice to above, he shall also be liable,]

543 Inserted vide Finance Act, 2025 dated 29th June, 2005
546 Substituted the word and figure “and 38A” vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009
542 Substituted for the word, figure and letter or 38A” vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009
544 Substituted the words “He shall, further be liable” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
545 Substituted the words “which may extend to an amount equal to the amount of tax involved” vide Finance Act, 2024 (X
of 2024) dated 29th June, 2024
547 Sr. No. 13 was substituted vide the Finance Act, 2025, dated 29th June, 2025
548 Inserted vide Finance Act, 2025 dated 29th June, 2005
549 Inserted vide Finance Act, 2025 dated 29th June, 2005
550 Substituted the words “He shall, further be liable” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

[81]
 upon conviction by a Special Judge, to
imprisonment for a term which may extend to
one year, or with fine 551[which may extend to
an amount equal to the amount of tax evaded
or sought to be evaded] or with both.
15. Any person who obstructs the such person shall pay a penalty 552[and 31 and General
authorized officer in the perfor-mance Punishment] of twenty five thousand rupees
of his official duties. or one hundred per cent of the amount of tax-
involved, whichever is higher.
16. Any person who fails to make such person shall pay a penalty 553[and 73
payment in the manner prescri-bed Punishment] of five thousand rupees or one
under section 73 of this Act. hundred per cent of the amount of tax
involved, whichever is higher.
17. Any person who fails to fulfill any such person shall pay a penalty 554[and 71 and General
of the conditions, limita-tions or Punishment] of five thousand rupees or three
restrictions prescribed a Notification per cent of the amount of tax involved,
issued under any of the provisions of whichever is higher.
this Act.
18. Where any officer of 555[Inland such officer of 556[Inland Revenue] shall be General
Revenue] authorized to act under this liable, upon conviction by a Special Judge, to
Act, acts or omits or attempts to act or imprisonment for a term which may extend to
omit in a manner causing loss to the three years, or with fine 557[which may extend
sales tax revenue or otherwise abets or to an amount equal to the amount of tax
connives in any such act. evaded or sought to be evaded] or with both.
19. Any person who contravenes any of such person shall pay a penalty 559[and General
the provisions of this Act 558[or the Punishment] of five thousand rupees or three
rules made thereunder] for which. No per cent of the amount of tax involved,
penalty has, specifically, been provided whichever is higher.
in this section.
560
[*** *** ]

551 Substituted the words “which may extend to an amount equal to the amount of tax involved” vide Finance Act, 2024 (X
of 2024) dated 29th June, 2024
552 Inserted vide Finance Act, 2025 dated 29th June, 2005
553 Inserted vide Finance Act, 2025 dated 29th June, 2005
554 Inserted vide Finance Act, 2025 dated 29th June, 2005
555 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made vide the Finance.(Amendment) Ordinance, 2010 (III of
2010) promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October, 2009
556 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made by the Finance.(Amendment) Ordinance, 2010 (III of
2010) promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October, 2009
557 Substituted the words “which may extend to an amount equal to the amount of tax involved” vide Finance Act, 2024 (X
of 2024) dated 29th June, 2024
558 Inserted vide the Finance Act, 2016
559 Inserted vide Finance Act, 2025 dated 29th June, 2005
560 Sr. No. 20 and the entries relating there to were omitted vide the Finance Act, 2008 (I of 2008), assented on 26th June,
2008). At the time of omission S. No. 20 was as under:--
33-xxvix
[20 Any person who fails to submit summary of sale Such person shall pay a penalty of 26(5)]
and purchase invoices required under a notification issued twenty-five thousand rupees.
under this Act.
[33-xxvix Sr. No. 20 and the entries relating thereto was added vide the Finance Act, 2006 (III of 2006), assented on
30th June, 2006]

[82]
561
[21. Where any person repeats an Such person shall pay twice the amount of General
offence for which a penalty is provided penalty 562[and Punishment] provided under
under this Act. the Act for the said offence,
563
[*** *** ***]
564 566
[23. Any person who manufac- (i) Such [specified goods] shall be liable 40C(2)]
tures, possesses, transports, 567
to outright confiscation [as may be
565
distributes, stores or sells [goods or prescribed] and destru-ction. Any person
class of goods as specified by the committing the offence shall pay a penalty
Board under sub-section (1) of section 568
[and Punishment] of twenty-five
40C] with count-erfeited tax stamps, thousand rupees or one hundred per cent of
bande-roles, stickers, labels or the amount of tax involved, whichever is
barcodes or without tax stamps, higher.
569
[Without prejudice to above, he
banderoles, stick-ers, labels or shall also be liable,] upon conviction by a
barcodes Special Judge, to simple imprisonment for a
term which may extend to three years, or
570
with additional fine [which may extend to
an amount equal to the amount of tax evaded
or sought to be evaded] or with both.
571
(ii) In case of transport of [specified
goods] with counterfeited tax stamps,
bande-roles, stickers, labels or barcodes, or
without tax stamps, banderoles, stickers,
labels or barcodes, permanent seizure of the

561 Sr. Nos. 21 & 22 and the entries relating thereto was added vide the Finance Act, 2006 (III of 2006), assented on 30th
June, 2006
562 Inserted vide Finance Act, 2025 dated 29th June, 2005
563 Sr. No. 22 was omitted vide Finance Act, 2025, dated 39th June, 2024. At the time of omission Sr. No. 22 was as
under:-
“22. Any person who,-- Such person shall pay a penalty 50A”
(a) knowingly and without lawful authority gains access to or attempts to of twenty-five thousand rupees
gain access to the computer-ized system; or or one hundred per cent of the
(b) un authorizedly uses or discloses or publishes or other-wise amount of tax 'involved,
disseminates infor-mation obtained from the computerized system; or whichever is higher. Without
(c) falsifies any record or information stored in the computerized system; or prejudice to above, he shall also
(d) knowingly or is honestly damages or impairs the compu-terized system; be liable, upon conviction by
or the Special Judge, to
(e) knowingly or dishonestly damages or impairs any dup-licate tape or disc imprisonment for a term which
or other medium on which any infor-mation obtained from the computerized may extended to one year, or
system is kept or stored; or with fine which may extend to
(f) unauthorizedly uses uniq-ue user identifier of any other registered user to an amount equal to the amount
authenticate a transmission of information to the computerized system; or of tax evaded or sought to be
(g) fails to comply with or contravenes any of the cond-itions prescribed for evaded or with both.
security of unique user identifier.
564 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
565 Substituted the words “cigarette packs” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
566 Substituted the words “cigarette packs” vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th
January, 2022.
567 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
568 Inserted vide Finance Act, 2025 dated 29th June, 2005
569 Substituted the words “He shall, further be liable” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
570 Substituted the words “which may extend to an amount equal to the amount of tax involved” vide Finance Act, 2024 (X
of 2024) dated 29th June, 2024
571 Substituted the words “cigarette packs” vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th
January, 2022.

[83]
 vehicle used for transportation of non-
572
conforming or counterfeit [specified
goods]; and
573
(iii) In case of repeat sale of [specified
goods] without or with counterfeited, tax
stamps, banderoles, stickers, labels or
barcodes, the premises used for such sale
574
[shall be liable to be sealed by an officer
of Inland Revenue in the manner as may be
prescribed].
575 578
[24. Any person, who is integrated Such person shall pay a penalty [and sub-section (9A) of
for monitoring, tracking, reporting or Punishment] of five hundred thousand section 3 and
recording of sales, production and rupees or two hundred per cent of the amount section 40C.
similar business transactions with the of tax involved, whichever is higher.
Board or its computerized system, 579
[Without prejudice to above, he shall also
conducts such transactions in a be liable,] upon conviction by a Special
manner so as to avoid monitoring, Judge, to simple imprisonment for a term
tracking, reporting or recording of which may extend to two years, or with
such transactions, or issues an invoice additional fine which may extend to two
which does not carry the prescribed million rupees, or with both.
576 580
invoice number or barcode [or QR [Notwithstanding above, the business
code] or bears duplicate invoice premises of such person shall be liable to be
577
number or counterfeit barcode, [or sealed by an officer of Inland Revenue in the
QR code or defaces the prescribed manner prescribed.]
invoice number of barcode or QR Any person who abets commissioning of
code] or any person who abets such offence, shall be liable, upon conviction
commissioning of such offence. by a Special Judge, to simple imprisonment
for a term which may extend to one year, or
with additional fine which may extend to two
hundred thousand rupees, or with both.
585 586
25. Any person, who is required to Such person shall be liable to pay a penalty [ [***]]
581
integrate his business for monitoring, [and Punishment] up to one million section 40C.
tracking, reporting or recording of rupees, and if continues to commit the same
sales, production and similar business 582
offence after a period of [two] months
transactions with the Board or its after imposition of penalty
583
[and
computerized system, fails to get

572 Substituted the words “cigarette packs” vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th
January, 2022.
573 Substituted the words “cigarette packs” vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th
January, 2022.
574 Substituted the words “be sealed for a period not exceeding fifteen days” vide Finance Act, 2024 (X of 2024) dated 29th
June, 2024
575 Added vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th December, 2019
576 Inserted vide the Finance Act, 2022 dated on 30th June, 2022
577 Inserted vide the Finance Act, 2022 dated on 30th June, 2022
578 Inserted vide Finance Act, 2025 dated 29th June, 2005
579 Substituted the words “He shall, further be liable” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
580 Inserted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
581 Inserted vide Finance Act, 2025 dated 29th June, 2005
582 Substituted the word “six” vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
583 Inserted vide Finance Act, 2025 dated 29th June, 2005

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himself registered under the Act, and Punishment] as aforesaid, his business
if registered, fails to integrate in the premises 584[shall be sealed till such time he
manner as required under law. integrates his business in the manner as
stipulated under section 40C].
587 597
[25A. A person required to Such person shall be liable to pay: [section 23]
591 598
integrate his business as stipulated (i) penalty [and Punishment] of five [and sub-section
588 589
under [section 23] [or sub- hundred thousand rupees for first (4) of section
section (4) of section 40C,] who fails default; 40C]]
592
to get himself registered under the (ii) penalty [and Punishment] of one
Act, and if registered, fails to million rupees for second default after
integrate in the manner as required fifteen days of order for first default;
under the law and rules made (iii) penalty 593[and Punishment] of two
590
thereunder [or fails to issue million rupees for third default after
electronic invoices after integration]. fifteen days of order for second default;
594
(iv) penalty [and Punishment] of three
million rupees for fourth default after
fifteen days of order for third default:
Notwithstanding above, the business
premises of such person shall be liable to be
sealed by an officer of Inland Revenue in the
manner prescribed:
Provided that if the retailer integrates his

585 Omitted the words “sub-section (9A) of section 3 and” vide the Tax Laws (Third Amendment) Ordinance, 2021 (XXII
OF 2021) dated 15th September, 2021.
586 Substituted the words “sub-section (9A) of section 3” vide the Finance Act, 2022 dated on 30th June, 2022
584 Substituted the words “shall be sealed till such time he integrates his business in the manner as stipulated under
section 40C” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
587 Serial No. 25A was substituted vide the Finance Act, 2022 dated on 30th June, 2022. At the time of substitution Serial
No. 25A was as under:-
25A. A person required to Such person shall be liable Sub-section
integrate his business as stipulated to pay (9A) of section
under sub-section (9A) of section 3, (i) penalty of five hundred thousand rupees for first default; 3]
who fails to get himself registered (ii) penalty of one million rupees for second default after
under the Act, and if registered, fails fifteen days of order for first default;
to integrate in the manner as (iii) penalty of two million rupees for third default after fifteen
required under the law and rules days of order for second default;
made thereunder. (iv) penalty of three million rupees for fourth default after
fifteen days of order for third default:
Notwithstanding above, the business premises of such person
shall be liable to be sealed by an officer of Inland Revenue in
the manner prescribed.
Provided that if the retailer integrates his business with the
Board's computerized system before imposition of penalty for
second default, penalty for first default shall be waived by the
Commissioner.
588 Substituted the words “sub-section (9A) of section 3” vide the Finance Act, 2025, dated 29th June, 2025
589 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
590 Added vide Finance Act, 2025 dated 29th June, 2005
591 Inserted vide Finance Act, 2025 dated 29th June, 2005
592 Inserted vide Finance Act, 2025 dated 29th June, 2005
593 Inserted vide Finance Act, 2025 dated 29th June, 2005
594 Inserted vide Finance Act, 2025 dated 29th June, 2005

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 business with the Board’s Computerized
595
System before imposition of penalty [and
Punishment] for second default, penalty
596
[and Punishment] for first default shall
be waived by the Commissioner.
599
[25AA. Any licensed integrator Such person shall be liable to pay penalty Sub-section (5) of
600
who is authorized to provide [and Punishment] of rupees one million section 40C.]
electronic invoicing system for or one percent of the total value of the sales
integration of registered persons fails suppressed, whichever is higher.
to integrate such registered persons in
the manner as required under this Act
and rules made thereunder.
601
[25B. Where any person Such person shall be liable to pay penalty of sub-section (6) of
fails to generate an e-bilty, or tampers fifty thousand rupees and recovery of any 40C.]
with, misuses, or forges such tax evaded through such contravention
document in contravention of
subsection (6) of section 40C.
602
26. Any person, being a manufacturer Such person shall pay a penalty [and sub-section (27) of
or importer of an item which is Punishment] of ten thousand rupees or five section 2 and
subject to tax on the basis of retailper cent of the amount of tax involved, clause (a) of sub-
price, who fails to print the retail whichever is higher: section (2) of
price in the manner as stipulated Further, such goods shall also be section 3.
under the Act. 603
liable to confiscation [as may be
prescribed]. However, the adjudication
authority, after such confiscation, may allow
redemption of such goods on payment of fine
which shall not be less than twenty percent of
the total retail price of such goods.
27. Any person, being owner of the Such person shall pay a penalty 604[and section 40D]
goods, which are brought to Pakistan Punishment] of ten thousand rupees or five
in violation of section 400. per cent of the amount of tax involved,
whichever is higher:
Further, such goods shall also be
605
liable to confiscation [as may be
prescribed]. However, the adjudication
authority, after such confiscation, may allow
redemption of such goods on payment of fine
which shall not be less than twenty percent of
value, or retail price in case of items falling

597 Substituted the words “sub-section (9A) of section 3” vide the Finance Act, 2025, dated 29th June, 2025
598 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
595 Inserted vide Finance Act, 2025 dated 29th June, 2005
596 Inserted vide Finance Act, 2025 dated 29th June, 2005
599 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
600 Inserted vide Finance Act, 2025 dated 29th June, 2005
601 Inserted vide Finance Act, 2025 dated 29th June, 2005
602 Inserted vide Finance Act, 2025 dated 29th June, 2005
603 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
604 Inserted vide Finance Act, 2025 dated 29th June, 2005
605 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

[86]
 in the Third Schedule, of such goods.
606 607
[28. Any person who is required to Such person shall pay a penalty [and 56AB]
share information under section 56AB, Punishment] of twenty five thousand rupees
fails to do so in the manner as required for first default and fifty thousand rupees for
under the law each subsequent default
608
[***]
609
[34. Default surcharge.-(1) Notwithstanding the provisions of section 11, if a registered person does
not pay the tax due or any part thereof, whether willfully or otherwise, in time or in the manner specified

606 Added vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
607 Inserted vide Finance Act, 2025 dated 29th June, 2005
608 Section 33A was omitted vide the Finance Act, 2022 dated on 30th June, 2022. At the time of omission section 33A
was as under:-
33A. Proceedings against authority and persons.-(1) Subject to section 51, the Board shall prescribe rules for
initiating criminal proceedings against any authority mentioned in sections 30 to 30DDD, including any officer or
official subordinate to the aforesaid authority, who willfully and deliberately commits or omits an act which results in
undue benefit or advantage to the authority or the officer or official or to any other person.
(2) Where proceedings under sub-section (1) have been initiated against the authority or officer or
official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings
against the person referred to in sub-section (1).
(3) The proceedings under this section shall be without prejudice to any other liability that the
authority or officer or official or the person may incur under any other law for the time being in force.
609 Section 34 was substituted vide the Finance-Act; 2005 (VII of 2005), assented on 29th June 2005. At the time of
substitution Section 34 was as under:--
“34 Additional Tax.-34-ii[(1) Notwithstanding the provisions of section 11, if a registered person or enrolled
person does not pay the tax due or any part thereof in time or in the manner specified under this Act, rules or
notification issued there under or claims a tax credit, refund or makes an adjustment, which is not admissible
to him, or incorrectly applies the rate of zero per cent to supplies made by him, he shall in addition to the tax
due, and the prescribed penalties pay additional tax at the rate of 34-iii[one] per cent of the tax due per month
or any part thereof.]
[34-ii Sub-section (1) was substituted vide the Finance Act, 1997 (XXII of 1997).] At the time of substitution sub-
section (1) was as under:--
“Notwithstanding the provisions of section II, if a registered person does not pay the tax or part thereof
within the time specified in section 6 or claims a tax credit or refund which is not admissible to him, or
incorrectly applies the rate of zero per cent 'to supplies made by him, he shall. in addition to the tax due, pay
additional tax at the following rates, namely:--
(a) five per cent of the tax due per month or any pan thereof during the first three months; 34-
iv
[and]
(b) two per cent of the tax due per month or any part thereof for the succeeding periods.
[34-iii Substituted the word “two” vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003, which was
Substituted the words “one and half” vide Tax Laws (Amendment) Ordinance, 200I (XIII of 200I) made on
15th March, 200I, which earlier replaced the word “five” vide the Finance Ordinance, 2000 (XXI of 2000).]
[34-iv Substituted the word “or” vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997). Earlier
same amendment was made by the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of 1996), effective
from 2nd November, 1996; and again vide the Sates Tax (Amendment) Ordinance, 1997 (XXXIX of 1997)]
(2) For the purpose of calculation of additional tax,--
(a) in the case of inadmissible input tax credit or refund, the period on default shall be
reckoned from the date of adjustment of such credit or, as the case be, refund is received;
and
(b) in the case of non-payment of tax or part thereof, the period of default shall be reckoned
from the 34-v[l6th] day of a month (following the due date of the tax period to which the
default relates) to the day preceding the date on which the tax due is actually paid.
34-vi
[***]
[34-v Substituted for the figure and letters “21st” vide the Sales Tax (Amendment) Act, 1999 (I of 1999) effective
from 1st December, 1998 and the same amendment was made by the Sales Tax (Second Amendment)
Ordinance, 1998 (XIV of 1998) effective from 1st December, 1998.]
[34-vi Explanation was omitted vide the Finance Ordinance, 2000 (XXI of 2000).] At the time of omission
Explanation was as under:--
“Explanation.-For the purpose of this section, the expression “tax due” includes the additional tax.”

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under this Act, rules or notifications issued there under or claims a tax credit, refund or makes an
adjustment which is not admissible to him, or incorrectly applies the rate of zero per cent to supplies
made by him, he shall, in addition to the tax due, pay default sur charge at the rate mentioned below:--
610
(a) [***] the person liable to pay any amount of tax or charge or the amount of refund
erroneously made, shall pay default surcharge at the rate of 611[twelve] per cent per
annum], of the amount of tax due or the amount of refund erroneously made; 612[and]
613
[***]
(c) in case, the default, is on account of tax fraud, the person' who has committed tax fraud
shall pay default surcharge at the rate of two per cent per month, of the amount of tax
evaded or the amount of refund fraudulently claimed, till such time the entire liability
including the amount of default surcharge is paid.
(2) For the purpose of calculation of default surcharge,--
(a) in the case of inadmissible input tax credit or refund, the period of default shall
be reckoned from the date of adjustment of such credit or, as the case may be,
refund is received; and
(b) in the case of non-payment of tax or part thereof, the period of default shall be
reckoned from the 16th day of a month (following the due date of the tax period
to which the default relates) to the day preceding the date on which the tax due is
actually paid.
Explanation:-For the purpose of this section tax due does not include the amount of penalty.]
614
[34A. Exemption from penalty and 615[default surcharge].-The Federal Government may, by a
notification in the official Gazette, or the 616[Board] by a special order published in Gazette for reasons to

34-vii
[Explanation.-For the purpose of this section tax due does not include the amount of penalty.]
[34-vii Explanation was added vide the Sales Tax (Amendment) Ordinance, 2001 (VII of 2001) made on 7th
February, 2001]
Initially, the section 34 was substituted vide the Finance Act, 1996 (IX of 1996). At the time of substitution section 34
was as under:--
“34 Additional Tax.-Notwithstanding the provisions of Section II.if a registered person fails to pay the
tax within the time specified in Section 6 he shall, in addition to the tax due. be liable to pay
additional tax and surcharge at the following rates:--
(a) 5 per cent of the tax due during the first month or pan thereof;
(b) 10 per cent of the tax due for the next mouth or part thereof;
(c) 100 per cent of tax due for the succeeding period;
(d) surcharge at the rate of I percent for every month or pan thereof on the total accumulated
amount that remains unpaid after the expiry of three months.
Explanations.-(1) For the purpose of calculating additional tax, the period of default shall be
reckoned from the 21st of a month (following the due date) to the day preceding the date on which
the tax is actually paid;
(2) In this section, the expression “tax due” includes the additional tax.”
610 The words and comma 34-viii[for the first six months of default,] was omitted vide the Finance Act, 2008 (I of 2008),
assented on 26th June, 2008
[34-viii The words were inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008]
611 Substituted the word ““KIBOR plus three” vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
612 The word was added vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
613 Clause (b) was omitted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008. At the time of omission
Clause (b) was as under:--
“(b) from the seventh month onwards, the person liable to pay any amount of tax or charge or the amount of
refund erroneously made, shall pay default surcharge at the rate of one and a half per cent per month, of the
amount of tax due or the amount of refund erroneously made, till such time the entire liability including the
amount of default surcharge is paid; and

[88]
be recorded in writing, exempt any person or class of persons from payment of the whole or part of the
penalty and 617[default surcharge] imposed under sections 33 and 34 subject to such conditions and
limitations as may be specified in such notification or, as the case may be, special order.]
618
[***]
619
[***]
620
[***]

614 Section 34A was substituted vide the Finance Ordinance, 200I (XXV of 200I) made on 18th June, 2001. At the time of
substitution Section 34A was as under:--
34A-i
[134A. Exemption from penalty and additional tax.-The Federal Government or a person duly authorized by the
Federal Government in this behalf may. for reasons to be recorded in writing, by notification in the official
Gazette, exempt any person or class of persons from the payment of the whole or part of the penalty and
additional tax imposed under section 33 and 34 subject to such conditions and limitations as may be specified
in the notification.
[34A-i Section 34A was added vide the Sales Tax (Amendment) Act, 1999 (I of 1999) effective from 1st December,
1998]
615 Substituted the words “Central Board of Revenue” vide the Finance Act, 2007 (IV of 2007), assented on 30th June,
2007
616 Substituted the words “Central Board of Revenue” vide the Finance Act,2007 (IV of 2007), assented on 30th June,2007
617 Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
618 Section 35 was omitted vide the Finance Act, 1996 (IX of 1996). Section 35 at the time of omission was as under:--
“35 Removal of goods without transport permit.-(1) If a manufacturer 35-i[or a wholesaler] makes a taxable
supply from his business premises without the cover of a transport permit as may be prescribed such supply
shall be liable to confiscation and the registered person, his agent or any other person concerned with such
supply shall be liable to a penalty of twenty five thousand rupees or twice the amount of the tax involved,
whichever is greater.
(2) Where any goods are confiscated under this section, the officer imposing the penalty, shall give the
owner of the goods an option to pay in lieu of confiscation of such goods redemption fine as the
officer may deem fit in addition to any tax and other charges due in respect of the goods.”
[35-i Words were inserted vide Finance Act, 1994 (XII of 1994)]
619 Section 35A was omitted vide the Finance Act, 1996 (IX of 1996). At the time of omission Section 35A was as under:--
35A-i
[35A. Extent of confiscation.-(1) Confiscation of any goods under this Act includes any package in which they are
found, and all other contents thereof.
(2) Every conveyance of whatever kind used in the removal of any goods liable to confiscation under
this Act shall also be liable to confiscation:
Provided that, where a conveyance liable to confiscation has been seized by an Officer of Sales
Tax, the appropriate officer may, in such circum- stances as may be prescribed by rules., order its
release, pending the adjudication of the case involving its confiscation if the owner of the
conveyance furnishes him with a sufficient guarantee from a scheduled bank for the due production
of the conveyance at any time and place it is required by the appropriate officer to be produced.
(3) Confiscation of any conveyance under this Act includes her tackle, apparel and furniture.]”
[35A-i Section 35-A was inserted vide the Finance Act, 1992]
620 Section 36 was omitted vide the Finance Act, 2002. At the time of omission Section 36 was as under:--
“
36 Recovery of tax not levied or short-levied or erroneously refunded.-(1) Where by reason of some
collusion or a deliberate act any tax or charge has not been levied or made or has been short-levied or has
been erroneously refunded, the person liable to pay any amount of tax or charge or the amount of refund
erroneously made shall be served with a notice, within five years of the relevant date, requiring him to show
cause for payment of the amount specified in the notice.
(2) Where, by reason of any inadvertence, error or misconstruction, any tax or charge has not been
levied or made or has been short-levied or has been erroneously refunded, the person liable to pay
the amount of tax or charge or the amount of refund erroneously made shall be served with a notice
within three years of the relevant date, requiring him to show cause for payment of the amount
specified in the notice:
Provided that, where a tax or charge has not been levied under this sub-section, the-amount of tax
shall be recovered as tax fraction of the value of supply
(3) The officer of lnland Revenue empowered in this behalf shall, after considering the objections of
the person served with a notice to show cause under sub-section (1) or sub-section, (2), determine
the amount of tax or charge payable by him and such person shall pay the amount so determined:

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37. Power to summon persons to give evidence and produce documents in inquiries under the
Act.-(1) Any officer of 621[Inland Revenue] shall have powers to summon any person whose attendance
he considers necessary either to tender evidence or to produce documents or any other thing in any
inquiry which such officer is making for any of the purposes of this Act.
(2) Any person summoned under sub-section (1) shall be bound to attend either in person or
by an authorised agent, as the officer of 622[Inland Revenue] may direct:
Provided that a person who is exempt from personal appearance in a Court under Sections 132
and 133 of the Code of Civil Procedure (Act V of 1908), shall not be required to appear in person.
(3) Any inquiry before an officer of 623[Inland Revenue] shall be deemed to be a judicial
proceeding within the meaning of Section 193 and Section 624[228] of the Pakistan Penal Code (Act. XLV
of 1860)
625
[(4) For the purpose of an inquiry under this Act, the officer of Inland Revenue shall have the
powers of a civil court trying a suit under the Code of Civil Procedure, 1908 (Act No. V of 1908), in
respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath; and
(b) requiring the discovery and production of documents and receiving evidence on
affidavits.]
626
[37A. Power to inquire, investigate offences warranting prosecution under this Act and Arrest of
a person.-(1) Notwithstanding anything contained in Section 11E of this Act, an officer of Inland

621 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010),
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
622 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of
2010), promulgated on 6th February. 2010) & the Finance (Amendment) Ordinance 2009 (XXII of 2009) promulgated
on 28th October, 2009
623 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010),
promulgated on 6th February 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
624 Substituted for the figure “223” vide Finance Act, 1994 (XII of 1994)
625 Added vide Finance Act, 2025 dated 29th June, 2005
626 Section 37A was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Section 37A
was as under:-
“37A. Power to arrest and prosecute.-(1) An officer of Inland Revenue, not below the rank of an Assistant
Commissioner Inland Revenue] or any other officer of equal rank authorized by the Board in this behalf, who on the
basis of material evidence has reason to believe that any person has committed a tax fraud or any offence warranting
prosecution under this Act may cause arrest of such person.
(2) All arrests made under this Act shall be carried out in accordance with the relevant provisions of the Code of
Criminal Procedure, 1898 (Act V of 1898)
[Omitted]
(4) Notwithstanding anything contained in sub-section (1) to sub-section (3) or any other provision of this Act,
where any person has committed a tax fraud or any offence warranting prosecution under this Act, the Commissioner
may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person
pays the amount of tax evaded or sought to be evaded along with default surcharge and penalty as provided under this
Act.
(5) Where the person suspected of tax fraud or any offence warranting prosecution under this Act] is a company,
every director or officer of that company whom the authorized officer has reason to believe is personally responsible
for actions of the company contributing the tax fraud or any offence warranting prosecution under this Act shall be
liable to arrest; provided that any arrest under this sub-section shall not absolve the company from the liabilities of
payment of tax, default surcharge and penalty imposed under this Act.”

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Revenue not below the rank of assistant commissioner or any other officer authorized by the Board in this
behalf on the basis of material evidence pointing to the commission of tax fraud or an offence warranting
prosecution under this act may initiate an inquiry upon approval by the Commissioner.
(2) For the purpose of an inquiry under this Act, the officer of Inland revenue shall have the
powers of a civil court trying a suit under the Code of Civil Procedure, 1908(Act No. V of 1908), in
respect of the following matters, namely: —
(a) summoning and enforcing the attendance of any person and examining on oath; and
(b) requiring the discovery and production of documents and receiving evidence on
affidavits.
(3) The officer of inland revenue shall complete the inquiry while exercising the powers
under the provisions of section 37, 38, 38A, 38B, 40 or any other section of the Act, wherever required
within six months.
(4) During inquiry proceedings, the officer of inland revenue shall give an opportunity of
being heard to the person whose actions alleged to have caused tax fraud warranting prosecution under
this Act, confronting the person the details of tax fraud committed or caused to be committed by such
person for explanation.
(5) The officer of inland revenue shall submit inquiry report along with reasons to be
recorded in writing indicating the amount involved in tax fraud worked out as a result of such inquiry to
the Commissioner to obtain prior approval for investigation or the closure of inquiry without any further
investigation.
(6) The Commissioner, on the basis of inquiry report under subsection
(5) and after recording reasons in writing, shall either —
(i) approve initiation of investigation, or
(ii) require the officer of Inland Revenue to submit such further information or documents as
he may direct for his decision; or
(iii) close the inquiry by rejecting the report or accepting the report, as the case may be.
(7) After approval of investigation under sub-section (6), the officer of inland revenue shall
complete investigation within three months and prepare investigation report for submission before the
competent court.
(8) The three-member committee notified by the Chairman, may authorize the Commissioner
to issue warrant of arrest of a person, if it is satisfied on the basis of facts brought before it, that
(a) the tax fraud falls within the ambit of sub-clauses (a), (b), (c), (d), (e) and (f) of clause
(37) of section 2;
(b) the amount involved in tax fraud exceeds fifty million rupees; and
(c) it has been established during the course of investigation by the Inquiry Officer that —
(i) the accused is intentionally or willfully not joining the investigation after three
duly served notices;
(ii) the accused is attempting to abscond; or
(iii) there are sufficient grounds that the accused would temper with the evidence.
(9) Notwithstanding anything contained in sub-section (8), the officer of inland revenue may
arrest a person alleged to have committed a tax fraud after obtaining an arrest warrant from the Special

[91]
Judge in a case of a fraud falling within the ambit of the sub-clauses of clause (37) of section 2 during the
course of investigation if:-
(i) the accused is intentionally or willfully not joining the investigation after three duly
served notices;
(ii) the accused attempting to abscond; or
(iii) there are sufficient grounds that the accused would temper with the evidence.
(10) Where the person suspected of tax fraud or any offence warranting prosecution under this
Act is a company, every director or officer of that company whom the officer of inland revenue has
reason to believe is personally responsible for actions of the company contributing the tax fraud or any
offence warranting prosecution under this Act shall be liable to arrest; provided that any arrest under this
subsection shall not absolve the company from the liabilities of payment of tax, default surcharge and
penalty imposed under this Act.
(11) Notwithstanding anything contained in this Act, where any person has committed a tax
fraud or any offence warranting prosecution under this Act, the Commissioner may, either before or after
the inquiry or investigation, compound the offence if such person pays the amount of tax evaded or
sought to be evaded as determined in the inquiry or the investigation along with default surcharge and
penalty as provided under this Act.
(12) Any person accused of an offence who is arrested under this Act shall at the time of arrest
be informed of the grounds of arrest in writing on the basis of which he has been arrested.
(13) All arrests made under this Act shall be carried out in accordance with the relevant
provisions of the Code of Criminal Procedure, 1898 (Act V of 1898):
Provided that no arrest under this section shall be made before the completion of inquiry under
sub-section (1) of this section.
(14) The accused arrested may approach the competent court for his release on bail under the
provisions contained in sections 497 and 498 of the Code of Criminal Procedure, 1898 (Act V of 1898).
(15) The purpose of prosecution under the provisions of sections 37A and 37B of this Act
shall remain to -
(a) create sufficient deterrence against tax fraud; and
(b) provide for retribution for commission of tax fraud.]
627
[37B. Procedure to be followed on arrest of a person.-(1) Where an officer of Inland Revenue arrests
a person under Section 37A, he shall immediately intimate the fact of the arrest of that person to the

627 Section 37B was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Section 37B
was as under:-
“37B. Procedure to be followed on arrest of a person.-(1) When an officer of Inland Revenue authorized in this
behalf arrests a person under section 37 A, he shall immediately intimate the fact of the arrest of that person to the
Special Judge who may direct such Officer to produce that person at such time and place and on such date as the
Special Judge considers expedient and such Officer shall act accordingly.
(2) Notwithstanding anything contained in the sub- section (1). any person arrested under this Act shall be
produced before the Special Judge or, if there is no Special Judge within a reasonable distance, to the nearest Judicial
Magistrate within twenty-four hours of such arrest, excluding the time necessary for the journey from the place of
arrest to the Court of the Special Judge or as the case may be. of such Magistrate.
(3) When any person is produced under sub-section (2) before the Special Judge. he may, on the request of such
person, after perusing the record, if any, and after giving the prosecution an opportunity of being heard admit him to
bail on his executing a bond with or without sureties, or refuse to admit him to bail and direct his detention at such
place as he deems fit:

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Special Judge who may direct such Officer to produce that person at such time and place and on such date
as the Special Judge considers expedient and such Officer shall act accordingly.
(2) Notwithstanding anything contained in the sub-section (1), any person arrested under this
Act shall be produced before the Special Judge or, if there is no Special Judge within a reasonable
distance, to the nearest Judicial Magistrate, within twenty-four hours of such arrest, excluding the time
necessary for the journey from the place of arrest to the Court of the Special Judge or, as the case may be,
of such Magistrate.
(3) Where a person is produced under sub-section (2) before the Special Judge, he may, on
the request of such person, after perusing the record, if any and after giving the prosecution an

Provided that nothing herein contained shall preclude the Special Judge from cancelling the bail of any such person at a
subsequent stage if, for any reason, he considers such cancellation necessary but before passing such order he shall
afford such person an opportunity of being heard, unless for reasons to be recorded he considers that the affording of
such opportunity shall defeat the purposes of this Act.
(4) When such person is produced under sub-section (2) before a Judicial Magistrate such Magistrate may. after
authorizing his detention in such custody at such place and for such period as he considers necessary or proper for
facilitating hi” earliest production before the Special Judge direct his production before the Special Judge on a date and
time to be fixed by him or direct such person to be forthwith taken to and produced before, the Special Judge and he
shall be so taken.
(5) Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the Judicial Magistrate from
remanding any such person to the custody of an officer of Inland Revenue holding inquiry against that person if such
Officer makes a request in writing to that effect, and the Special Judge or the Judicial Magistrate, after perusing the
record, if any, and hearing such person, is of the opinion that for the completion of inquiry or investigation it is
necessary to make such order:
Provided that in no case the period of such custody shall exceed fourteen days
(6) When any person is arrested under this Act, an officer of Inland Revenue shall record the fact of arrest and
other relevant particulars in the register specified in sub-section (10) and shall immediately proceed to inquire into the
charge against such person and if he completes the inquiry within twenty-four hours of his arrest, excluding the time
necessary for journey as aforesaid, he may, after producing such person before the Special Judge or the nearest Judicial
Magistrate, make a request for his further detention in his custody.
(7) While holding an inquiry under sub-section (6), an officer of Inland Revenue shall exercise the same powers
as are exercisable by an officer in charge of a police station under the Code of Criminal Procedure, 1898 (Act V of
1898), but such Officer shall exercise such powers subject to the foregoing provisions of this section while holding an
inquiry under this Act.
(8) If an officer of Inland Revenue after holding an inquiry as aforesaid. is of the opinion that there is no
sufficient evidence or reasonable ground for suspicion against such person, he shall release him on his executing a bond
with or without sureties, and shall direct such person to appear, as and when required, before the Special Judge, and
make a report to the Special Judge for the discharge of such person and shall make a full report of the case to his
immediate superior.
(9) The Special Judge to whom a report has been made under sub-section (8), may, after the perusal of record of
the inquiry and hearing the prosecution, agree with such report and discharge the accused or, if he is of the opinion that
there is sufficient ground for proceeding against such person, proceed with his trial and direct the prosecution to
produce evidence.
(10) An officer of Inland Revenue empowered to hold inquiry under this section shall maintain a register to be
called “Register of. Arrests and Detention” in the prescribed form in which he shall enter the name and other particulars
of every person arrested under this Act, together with the time and date of arrest, the details of the information
received, the details of things, goods or documents, recovered from his custody, the name of the witnesses and the
explanation, if any, given by him and the manner in which the inquiry has been conducted from day to day; and such
register or authenticated copies of its aforesaid entries shall be produced before the Special Judge, whenever such
Officer is so directed by him.
(11) After completing the inquiry, an officer of Inland Revenue shall, as early as possible, submit to the Special
Judge a complaint in the same form and manner in which the officer in charge of a police-station submits a report
before a court.
(12) Any Magistrate of the first class may record any statement or confession during inquiry under this Act, in
accordance with the provisions of section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898)
(13) Without prejudice to the foregoing provisions of this section, the Board, with the approval of the Federal
Minister-in-charge, may, by notification in the official Gazette, authorize any other officer working under the Board to
exercise the powers and perform the functions of an officer of Inland Revenue under this section subject to such
conditions if any, that it may deem fit to impose.”

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opportunity of being heard, admit him to bail on his executing a bond, with or without sureties, or refuse
to admit him to bail and direct his detention at such place as he deems fit:
Provided that nothing herein contained shall preclude the Special Judge from cancelling the bail
of any such person at a subsequent stage if, for any reason, he considers such cancellation necessary, but
before passing such order he shall afford such person an opportunity of being heard, unless for reasons to
be recorded he considered that the affording of such opportunity shall defeat the purposes of this Act.
(4) When such person is produced under sub-section (2) before a Judicial Magistrate, such
Magistrate may, after authorising his detention in such custody at such place and for such period as he
considers necessary or proper for facilitating his earliest production before the Special Judge, direct his
production before the Special Judge on a date and time to be fixed by him or direct such person to be
forthwith taken to, and produced before, the Special Judge and he shall be so taken.
(5) Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the
Judicial Magistrate from remanding any such person to the custody of an officer of Inland Revenue]
holding investigation against that person if such officer makes a request in writing to that effect, and the
Special Judge or the Judicial Magistrate, after perusing the record, if any, and hearing such person, is of
the opinion that for the completion of inquiry or investigation it is necessary to make such order:
Provided that in no case the period of such custody shall exceed fourteen days.
(6) When any person is arrested under this Act, an officer of Inland Revenue shall record the
fact of arrest and other relevant particulars in the register specified in sub-section (10) and shall
immediately proceed to investigate into the charge against such person and if he completes the
investigation within twenty-four hours of his arrest, excluding the time necessary for journey as aforesaid,
he may, after producing such person before the Special Judge or the nearest Judicial Magistrate, make a
request for his further detention in his custody.
(7) While holding an investigation under sub-section (6), an officer of Inland Revenue shall
exercise the same powers as are exercisable by an officer in charge of a police station under the Code of
Criminal Procedure, 1898 (Act V of 1898), but such officer shall exercise such powers subject to the
foregoing provisions of this section while holding an investigation under this Act.
(8) If an officer of Inland Revenue, after holding an investigation as aforesaid, is of the
opinion that there is no sufficient evidence or reasonable ground for suspicion against such person, he
shall release him on his executing a bond, with or without sureties, and shall direct such person to appear,
as and when required, before the Special Judge, and make a report to the Special Judge for the discharge
of such person and shall make a full report of the case to his immediate superior.
(9) The Special Judge to whom a report has been made under subsection, (8) may, after the
perusal of record of the investigation, and hearing the prosecution, agree with such report and discharge
the accused or, if he is of the opinion that there is sufficient ground for proceedings against such person,
proceed with his trial and direct the prosecution to produce evidence.
(10) An officer of Inland Revenue empowered to hold investigation under this section shall
maintain a register to be called "Register of Arrests and Detentions" in the prescribed form in which he
shall enter the name and other particulars of every person arrested under this Act, together with the time
and date of arrest, the details of the information received, the details of things, goods or documents,
recovered from his custody, the name of the witnesses and the explanation, if any, given by him and the
manner in which the investigation has been conducted from day to day; and, such register or authenticated
copies of its aforesaid entries shall be produced before the Special Judge, whenever such Officer is so
directed by him.

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 (11) After completing the investigation, an officer of Inland Revenue shall, as early as
possible, submit to Special Judge a report in the same form and manner in which the officer in charge of a
police station submits a report, before a court.
(12) Magistrate of the first class may record any statement or confession during investigation
under this Act, in accordance with the provisions of Section 164 of the Code of Criminal Procedure, 1898
(Act V of 1898).
(13) Without prejudice to the foregoing provisions of this section, Board, with the approval of
the Federal Minister-in-charge, may, by notification in the official Gazette, authorize any other officer
working under the Board to exercise the powers and perform the functions of an officer of Inland
Revenue under this section, subject to such conditions, if any, that it may deem fit to impose.]
628
[37C. Special Judges.-(1) The Federal Government may by notification in the official Gazette, appoint
as many Special Judges as it considers necessary and. where it appoints more than one Special Judge, it
shall specify in the notification the headquarters of each Special Judge and the territorial limits within
which he shall exercise jurisdiction under this Act.
(2) No person shall be appointed as a Special Judge unless he is or has been a Sessions
Judge.]
629
[37D. Cognizance of offences by Special Judges.-(1) Notwithstanding anything contained in this Act
or any other law for the time being in force, a Special Judge may, within the limits of his jurisdiction, take
cognizance of any offence punish able under this Act,--
(a) upon a report in writing made by an officer of Inland Revenue or by any other officer
especially authorized in this behalf by the Federal Government; or

628 Section 37C was inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010. Section 37C was
omitted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005. At the time of omission Section 37C was
as under:--
37C-i
[37C Prosecution and punishment for evasion of tax, etc.-(1) Where-
(a) a person does not pay the amount of tax due in time and in the manner specified for its payment
and also fails to pay even after the expiry of a period of sixty days of issuance of the notice for such
payment by a Sales Tax Officer, not below the rank of an Assistant Collector of Sales Tax, he shall
be liable to punishment for a term which may extend to three years, or with fine which may extend
to amount equal to the amount of tax involved. or with both:
[37C-i Section 37C was inserted vide the Finance Act, 1997 (XXII of 1997)]
(b) a person who is required to get himself registered under this Act fails to get registered within sixty
days 37C-ii[of the commencement of taxable activity], he shall be liable to punishment for a term
which may extend to three years or with tine which may extend to amount equal to the amount of
tax involved. or with both;
[37C-ii Substituted the words “of the expiry of the period given in section 15 read with clause (a) of sub-section (3)
of section 33” vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
(c) a person refuses to allow access to the premises, stocks, accounts or records, etc .. to the Sales Tax
Officer or refuses or fails to present the same as the case may be, when required under section 25
or 38 of this Act, he shall be liable to punishment for a term which may extend to three years, or
with fine which may extend to amount equal to the loss of tax involved, or with both;
(d) any officer of sales tax or any other person authorized to act under this Act, acts or omits or
attempts to act or omit in a manner causing loss to the sales tax revenue or to other purposes of
this Act, or abets or connives at any such act or any attempt to practice any such act. he shall be
liable to punishment for a term which may extend to three years, or with fine which may extend to
amount equal to the amount of tax involved, or with both; or
(e) a registered person fails to file the return for two consecutive tax periods without any lawful excuse
or violates any embargo placed on removal of goods in connection with recovery of tax. he shall be
liable to punishment for a term which may extend to one year, or with fine which may extend to any
amount equal to the amount of tax involved, or with both:--
(2) In respect of offences under sub-section (I) the provisions of section 37A and 37B so far as
applicable shall apply.]
629 Section 37D was inserted vide the Finance Act, 20I0 (XVI' of 2010), assented on 30th June, 20I0

[95]
 (b) upon receiving a complaint or information of facts constituting such offence made or
communicated by any person; or
(c) upon his own knowledge acquired during any proceeding before him under this Act or
under any other law for the time being in force.
(2) Upon the receipt of report under clause (a) of sub-section (1), the Special Judge shall
proceed with the trial of the accused.
(3) Upon the receipt of a complaint or information under clause (b), or acquired. in the
manner referred to in clause (c) of sub-section (1), the Special Judge may, before issuing a summon or
warrant for appearance of the person complained against, hold a preliminary inquiry for the purpose of
ascertaining the truth or falsehood of the complaint, or direct any Magistrate or any officer of Inland
Revenue or any police officer to hold such inquiry and submit a report, and such Magistrate or officer
shall conduct such inquiry and make report accordingly.
(4) If, after conducting such inquiry or after considering the report of such Magistrate or
officer, the Special Judge is of the opinion that,--
(a) there is no sufficient ground for proceeding, he may dismiss the complaint, or
(b) there is sufficient ground for proceeding he may proceed against the person complained
against in accordance with law.
(5) A Special Judge or a Magistrate or all officer holding inquiry under sub-section (3) may
hold such as early as possible, in accordance with the provisions of section 202 of the Code of Criminal
Procedure, 1898 (Act V of 1898).]
630
[37E. Special Judge, etc. to have exclusive jurisdiction.-Notwithstanding anything contained in this
Act or in any other law for the time being in force,--
(a) no court other than the Special Judge having jurisdiction, shall try an offence punishable
under this Act;
(b) no other court or officer, except in the manner and to the extent specifically provided for
in this Act, shall exercise any power, or perform any function under this Act;
(c) no court, other than the High Court, shall entertain, hear or decide any application,
petition or appeal under Chapters XXXI and XXXII of the Code of Criminal Procedure,
1898 (Act V of 1898), against or in respect of any order or direction made under this Act;
and
(d) no court, other than the Special Judge or the High Court, shall entertain any application
or petition or pass any order or give any direction under Chapters XXXVII, XXXIX,
XLIV or XLV of the aforesaid Code.]
631
[37F. Provisions of Code of Criminal Procedure, 1898, to apply.-(1) The provisions of the Code of
Criminal Procedure, 1898 (Act V of 1898). so far as they are not inconsistent with the provisions of this
Act, shall apply to the proceedings of the court of a Special Judge and such court shall be deemed to be a
court of Sessions for the purposes of the said Code and the provisions of Chapter XXIIA of the aforesaid
Code, so far as applicable and with the necessary modifications, shall apply to the trial of cases by the
Special Judge under this Act.

630 Section 37E was inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June 2010
631 Section 371F was inserted vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 20I0

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 (2 ) For the purposes of sub-section (1), the Code of Criminal Procedure, 1898 (Act V of
1898), shall have effect as if an offence punishable under this Act were one of the offences referred to in
sub-section (1) of section 337 of the said Code.]
632
[37G. Transfer of cases.-(1) Where more than one Special Judge are appointed within the territorial
jurisdiction of a High Court. the High Court, and where not more than one Special Judge is so appointed,
the Federal Government, may, by order in writing direct the transfer. at any stage of the trial, of any case
from the court of one Special Judge to the Court of another Special Judge for disposal, whenever it
appears to the High Court or, as the case may be, the Federal Government, that such transfer may promote
the ends of justice or tend to the general convenience of the parties or witnesses.
(2) In respect of a case transferred to a Special Judge under sub-section (l). such Special
Judge shall not by reason of the said transfer, be bound to recall and rehear any witness whose evidence
has been recorded in the case before the transfer and may act upon the evidence already recorded or
produced before the court which tried the case before the transfer.]
633
[37H. Place of sittings.-A Special Judge shall ordinarily hold sittings at his headquarters but, keeping
in view the general convenience of the parties or the witnesses, he may hold sittings at any other place.]
634
[371. Appeal to the High Court.-(1) Any person, including the Federal Government, the Board, the
Commissioner or Director of Intelligence and Investigation or any other officer authorized in this behalf
by the Board, aggrieved by any order passed or decision made by a Special Judge under this Act or under
the Code of Criminal Procedure, 1898 (Act V of 1898), may, subject to the provisions of Chapters XXXI
and XXXII of the said Code, within sixty days from the date of the order or decision, prefer an appeal to
the High Court.
(2) Except as otherwise provided in sub-section (1), the provisions of the Limitation Act,
1908 (IX of 1908), shall apply to an appeal preferred under sub-section (1).]
635
[38. Authorized officers to have access to premises, stocks, accounts and records.-(1) Any officer
authorized in this behalf by the Board 636[or the Commissioner] 637[***] shall have free access
638
[including real-time electronic access] to business or manufacturing premises, registered office or any
other place where any stocks, business records or documents required under this Act are kept or
maintained belonging to any registered person or a person liable for registration or whose business
activities are covered under this Act or who may be required for any inquiry or investigation in any tax
fraud committed by him or his agent or any other person: and such officer may, at any time, inspect the
goods, stocks, records, data, documents, correspondence, accounts and stateme.pts. utility bills, bank
statements, information regarding nature and sources of funds or assets with which his business is
financed, and any other records or documents, including those which are required under any of the
Federal, Provincial or local laws maintained in any form or mode and may take into his custody such

632 Section 37G was inserted vide the Finance Act, 20I0 (XVI of 2010), assented on 30th June 2010
633 Section 37H was inserted vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010
634 Section 371 was inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010
635 Section 38 was substituted vide the Finance Act, 1996 (IX of 1996). Section 38 at the time of substitution was as under:-
“38 Authorised officers to have access to premises stocks accounts and records.-(1) Any officer authorised by
the 38-i[Board or] Collector in this behalf shall have free access the business premises of a registered person and such
officer may, after due notice to the registered person inspect the stocks and accounts and may at any time check his
records.
(2) If the authoriscd officer makes any query the registered person shall furnish such information or
explanation as may be sought by him.”
[38-i The words were inserted vide the Finance Act, 1992]
636 The words were inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th June,
2010
637 The words “or the Collector” were omitted vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009
638 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020

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records, statements, diskettes, documents or any part thereof, in original or copies thereof in such form as
the authorised officer may deem fit against a signed receipt.
(2) The registered person, his agent or any other person specified in sub-section (1) shall be
bound to answer any question or furnish such information or explanation as may be asked by the
authorised officer.
(3) The department of direct and indirect taxes or any other Government department; local
bodies, autonomous bodies, corporations or such other institutions shall supply requisite information and
render necessary assistance to the authorised officer in the course of inquiry or investigation under this
section.]
639
[(4) For the purpose of sub-section (1), the Board may make rules relating to electronic real-
time access for audit or a survey of persons liable to tax.]
640
[38A. Power to call for information.-The 641[Commissioner] may, by notice in writing, require any
person, including a banking company, to furnish such information or such statement in connection with
any investigation or inquiry in cases of tax fraud, as may be specified in such notice 642[:]]
643
[Provided that the 644[Commissioner] may require any regulatory authority to provide
information concerning the licenses and authorizations issued by it]
645
[38B. Obligation to produce documents and provide information.-(1) Notwithstanding anything
contained in this Act or any other law for the time being in force, any person required to maintain the
record under the Act, on demand by an officer, not below the rank 646[an Assistant] 647[Commissioner
Inland Revenue], by notice in writing, as and when specified in the notice, shall--
(a) produce for examination, such documents or records which the officer of 648[Inland
Revenue] considers necessary or relevant to the audit, inquiry or investigation under the
Act;
(b) allow the officer of 649[Inland Revenue] to take extracts from or make copies of such
documents or records; and

639 Added vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
640 Section 38A was inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June 2004
641 Substituted the word “Collector” vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010 effective from
5th June, 20I0. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 20I0 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October. 2009
642 Substituted for the full stop vide the Finance Act, 2007 (IV of 2007) assented on 30th June, 2007
643 Proviso was added vide the Finance Act,2007 (IV of 2007), assented on 30th June, 2007
643 Section 38B was added vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006
644 Substituted the word “Collector” vide the Finance Act, 2010
645 Substituted the words “a Deputy” vide the Finance Act, 20II (XVI of 2011), assented on 29th June, 2011
646 Substituted the words “Collector of Sales Tax” vide the Finance Act, 20I0 (XVI of 2010), assented on 30th June, 2010
effective from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010
(III of 2010) promulgated on 11th February.2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009)
promulgated on 28lh October, 2009
647 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October,2009
648 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February 20I0) & the Finance (Amendment) Ordinance.2009 (XXII of 2009) promulgated on 28th
October. 2009
649 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)

[98]
 (c) appear before the officer of 650[Inland Revenue] and answer any question put to him
concerning the documents and records relating to the audit or inquiry or investigation
referred to in clause (a) above.
(2) An officer of 651[Inland Revenue] conducting an audit, inquiry or, as the case may be, an
investigation under the Act, may require in writing any person, department, company or organization to
furnish such information as is held by that person, department, company or organization, which, in the
opinion of the officer of 652[Inland Revenue], is relevant to such audit, inquiry or investigation.
(3) The Board may require, in writing, any person, department, company or organization, as
the case may be, to provide any information or data held by that person, department, company or
organization, which, in the opinion of the Board, is required for purposes of formulation of policy or
administering the Customs, Sales Tax, Federal Excise or Income Tax.
(4) Every person, department, company or organization shall furnish the information
requisitioned by the Board or the officer of 653[Inland Revenue] under sub-section (2) or (3), within the
time specified in the notice issued by the Board or, as the case may be, the officer of 654[Inland Revenue].]
655
[(5) Notwithstanding anything contained in any other law for the time being in force, the
Commissioner may, by notice in writing, require any Internet Service Providers, Telecommunication
Companies and Pakistan Telecommunication Authority, to furnish subscriber's information pertaining to
the Internet Protocols in connection with any inquiry or investigation in cases of tax fraud, as may be
specified in such notice.]
656
[***]
657
[40. Searches under warrant.-(1) Where any officer of 658[Inland Revenue] has reason to believe that
any documents or things which in his opinion. may be useful for, or relevant to, any proceedings under

promulgated on 6th February 20I0) & the Finance (Amendment) Ordinance.2009 (XXII of 2009) promulgated on 28th
October. 2009
650 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February 20I0) & the Finance (Amendment) Ordinance.2009 (XXII of 2009) promulgated on 28th
October. 2009
651 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
652 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
653 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February 20I0 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October. 2009
654 Substituted for the words “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
655 Added vide Finance Act, 2025 dated 29th June, 2005
656 Section 39 was omitted vide the Finance Act, 1996 (IX of 1996). Section 39 at the time of omission was as under:-
“39 Seizure of goods liable to confiscation.-Any officer of Sales Tax empowered by the 39-i[Board or] Collector
m this behalf may seize any goods liable to confiscation and any documents or things which in his opinion
will be useful as evidence in any proceeding under this Act and where it is not practicable to seize any such
goods or things, he may serve on the owner of the goods or any person holding them in his possession or
charge an order that he shall not remove part with, change or otherwise deal with the goods except with the
prior permission of such officer.
[39-i Inserted vide the Finance Act, 1992]
657 Section 40 was substituted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004. At the time of
substitution Section 40 was as under:--

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this Act are kept in any place, he may after obtaining a warrant from the magistrate, enter that place and
cause a search to be made at any time.
(2) The search made 659[in his presence,] under sub-section (1) shall be carried out in
accordance with the relevant provisions of the Code of Criminal Procedure, 189R (V of 1898).]
660
[***]
661
[40B. Posting of l[Inland Revenue] Officer.-Subject to such conditions and restrictions, as deemed fit
to impose, the 662[Board], 663 664[***]] may post Officer of 665[Inland Revenue] to the premises of

“40 Searches how to be made.-All searches made under this Act or the rules made there under shall be carried
out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V 1898)
658 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI 0[2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February. 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on: 28th
October, 2009
659 The words and comma inserted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
660 Section 40A was omitted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006. At the time of omission
section 40A was as under:--
40A-i 40A-ii
[ [40A. Search without warrant.-](1) Notwithstanding the provisions of section 40, where any Officer of
Sales Tax not below the rank of an Assistant Collector of Sales Tax has reasons to believe that 40A-iii [***]
any documents or things which, in his opinion. may be useful for, or relevant to, any proceeding under this
Act are concealed or kept in any place and that there is a danger that they may be removed before a search
can be effected under section 40, he may, after preparing a statement in writing of the grounds of his belief
for which search is to be made, search or cause search to be made 40A-iv[in his presence,] for such 40A-v[***]
documents or things in that place.
[40A-i Section 40A was inserted vide Finance Act, 1994 (XII of 1994)]
[40-Aii Substituted for “40A” vide the Finance Act, 1996 (IX of 1996)]
[40A-iii The words “any goods liable to confiscation or” was omitted vide the Sales Tax (Amendment) Ordinance,
2001 (VII of2001) made on 7th February. 2001]
[40A-iv The words and comma was inserted vide Finance Act, 2005 (VII of 2005), assented on 29th June, 2005]
[40A-v The word and comma “goods,” was omitted vide the Sales Tax (Amendment) Ordinance, 2001 (VII of 2001
made on 7th February, 2001]
(2) Any officer or person who makes a search or causes a search to be made under sub-section (I)
shall leave a signed copy of the statement referred to in that section in or about the place searched
and shall, at the time the search is made or as soon as is practicable thereafter, deliver a signed
copy of such statement to the occupier of the place at his last known address.
(3) No suit, prosecution or other legal proceedings shall be instituted, except with the previous
sanction in writing of the Federal Government against any person in respect of anything done or
purporting to be done in respect of exercise of any powers conferred by sub-section (I) or sub-
section (2).]
661 Section 40B was inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June 2003. Earlier a different Section
40a was omitted vide the Finance Act, 1996 (IX of 1996). Section 40B so omitted at the time of omission was as under:-
40B-i
[40B. Power to stop and search conveyances.-(1) Where the Sales Tax Officer has reason to believe that within
the territories of Pakistan, including territorial waters, any conveyance has been, is being, or is about to be,
used in the removal of any taxable goods or in the carriage of any illegal removal of, taxable goods, he may,
at any time, stop any such conveyance and--
(a) rummage-and search any part of the conveyance;
(b) examine and search any goods thereon;
(c) and break open the lock of any door, fixture or package for making search.
(2) Where in the circumstances referred to in subsection (1),it becomes necessary to stop any
conveyance, the Sales Tax Officer may use or cause to be used all lawful means for stopping it or
preventing its escape including, if all other means fail, firing upon it.]
[40B-i Section 40B was inserted vide the Finance Act, 1995 (Act No. I of 1995)]
662 Substituted the words “Central Board of Revenue” vide the Finance Act, 2007 (IV of 2007), assented on30th June, 2007
663 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
664 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
665 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010),
promulgated on: 6th February,2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009

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registered person or class of such persons to monitor production, sale of taxable goods and the stock
position 666[.]
Provided that if a 667[Commissioner], on the basis of material evidence, has reason to believe that
a registered person is involved in evasion of sales tax or tax fraud, he may, by recording the reason in
writing, post an Officer of 668[Inland Revenue] to the premises of such registered person to monitor
production or sale of taxable goods and the stocks position.]
669
[***]
670
[40C. Monitoring or tracking by electronic or other means.-(1) Subject to such conditions,
restrictions and procedures, as it may deem fit to impose or specify, the Board may, by notification in the
official Gazette, specify any registered person or class of registered persons or any good or class of goods
in respect of which monitoring or tracking of production, sales, clearances, stocks or any other related
activity may be implemented through electronic or other means as may be prescribed.
(2) From such dale as may be prescribed by the Board, no taxable goods shall be removed or
sold by the manufacturer or any other person without affixing tax stamp, banderole, stickers, 671[bar
codes], 672[production monitoring, video analytics,] etc. in any such form, style and manner as may be
prescribed by the Board in this behalf.]
673
[(3) Such tax stamps, banderoles, stickers, labels, bar codes 674[,monitoring equipment] etc.,
shall be acquired by the registered person referred to in subsection (2) from a licensee appointed by the
Board for the purpose, against price approved by the Board, which shall include the cost of equipment
installed by such licensee in the premises of the said registered person.;]
675
[(4) Notwithstanding anything contained in this Act or any other law for the time being in
force, the provisions of section 83C of the Customs Act, 1969 (IV of 1969) shall mutatis mutandis apply.]
676
[***]

666 Substituted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
667 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009), promulgated on
28th October, 2009
668 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010),
promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
669 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. Explanation so omitted at the time of
omission was as under:-
669
[Explanation.-For the removal of doubt, it is declared that the powers of the Board, Chief Commissioner and
Commissioner under this section are independent of the provisions of section 40.]
670 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
671 Substituted for “labels” vide Finance Act, 2015
672 Inserted vide Finance Act, 2025 dated 29th June, 2005
673 Added vide Finance Act, 2015
674 Inserted vide Finance Act, 2025 dated 29th June, 2005
675 Sub-section (4) was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution sub-section
(4) was as under:-
“(4) Notwithstanding anything contained in this Act, the Board through notification in the official Gazette, may
require any person or class of persons to integrate their electronic invoicing system with the Board’s Computerized
System for real time reporting of sales in such mode and manner and from such date as may be specified therein; and”
676 Sub-section (5) was Omitted vide Finance Act, 2025, dated 39th June, 2024. At the time of omission sub-section (5)
was as under:-
“(5) Licensed integrator shall integrate electronic invoicing system of registered persons referred to in sub-section
(4) in such mode and manner as may be prescribed.”

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677
[40D. Provisions relating to goods supplied from tax-exempt areas.-(1) The conveyances carrying
goods supplied from the tax exempt areas, shall be accompanied by such documents in respect of the
goods carried as may be prescribed under rules.
(2) The Regional Tax Office having jurisdiction may establish check-posts on the routes
originating from tax-exempt areas for the purpose of examining the goods carried and the documents
related thereto. An officer not below the rank of Inspector, Inland Revenue, as authorized by the
Commissioner, Inland Revenue, and assigned to such check-posts, may stop vehicles on such routes as
coming from tax-exempt areas and examine documents for ascertaining their validity and conformity to
the goods carried.
(3) In the absence of the prescribed documents or any discrepancy in such documents, the
goods so carried shall be seized along with the vehicle carrying the goods by the officer as aforesaid
under proper acknowledgment.
(4) The notices to the owner of the goods and the vehicle to show cause against imposition of
penalty shall be issued within fifteen days of the seizure as aforesaid.
(5) For the purposes of this section, the expression "tax-exempt areas" means Azad Jammu
and Kashmir, Gilgit-Baltistan, 678[Border Sustenance Markets and] Tribal Areas as defined in Article 246
of the Constitution of the Islamic Republic of Pakistan and such other areas as may be prescribed.]
679
[40E. Licensing of brand name.-(1) Manufacturers of the specified goods shall be required to obtain
brand licence for each brand or stock keeping unit (SKU) in such manner as may be prescribed by the
Board.
(2) Any specified brand and SKU found to be sold without obtaining a licence from the
Board shall be deemed counterfeit goods and liable to outright confiscation and destruction in the
prescribed manner and such destruction and confiscation shall be without prejudice to any other penal
action which may be taken under this Act.]
680
[***]
681
[***]
CHAPTER-VIII
682
[APPEALS]

677 Inserted vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th December, 2019
678 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
679 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
680 Section 41 was omitted vide the Finance Act, 1996 (IX of 1996). Section 41 at the time of omission was as under:--
“41 Goods seized how dealt with.-(1) All goods seized under Section 39 41-i[may] be given in the custody of the
owner to be kept at a safe place, and the owner shall be responsible for the safe custody of the said goods:
Provided that if the owner refuses to take custody of the goods, the same shall be deposited in a
State warehouse appointed by the Collector for this purpose
(2) When any goods liable to confiscation under this Act are seized under Section 39, the Collector or
any other officer authorised by him in this behalf may, notwithstanding that the ease is pending adjudication
under Sections 43, 45 or 46 or a proceeding in any Court, cause the goods to be sold and have the proceeds
kept in deposit pending adjudication of the case or the final judgment by the Court
(3) If on final adjudication of the case, the goods sold under sub-section (2) are found not liable to
confiscation, the sales proceeds, after necessary deduction of taxes or dues leviable thereon shall be paid to
the owner in the prescribed manner.'
[41-i Substituted the words “shall” vide the Finance Act, 1992]
681 Section 42 was omitted vide the Finance Act, 1996 (IX of 1996). Section 42 at the time of omission was as under:--
“42 Disposal of confiscated goods.-Goods confiscated under this Act, shall be disposed of in such manner as
may be prescribed.”
682 Substituted for “Adjudication of cases” vide the Finance Act, 1996 (IX of 1996)

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683
[ ***]
684
[***]
685
[ ***]
686
[***]

683 Section 43 was omitted vide the Finance Act, 1996 (IX of 1996). At the time of omission section 43 was as under:-
“43 Adjudication.-Cases relating to confiscation of goods or imposition of a penalty under this Act shall be
adjudicated by such officer of Sales Tax as the Board may, vide a Notification in the official Gazette, authorise.”
684 Section 43A was Omitted vide Finance Act, 2025, dated 39th June, 2024. At the time of omission section 43A was as
under:-
“43A. Pecuniary jurisdiction in appeals.-(1) Subject to other provisions of this Act,-
(a) an appeal to the Commissioner (Appeals) shall lie where the value of assessment of tax or, as the
case may be, refund of tax does not exceed ten million rupees; or
(b) an appeal to the Appellate Tribunal Inland Revenue shall lie where the value of assessment of tax
or, as the case may be, refund of tax exceeds ten million rupees.
(2) A person or, as the case may be, officer of Inland Revenue aggrieved by an order of the Commissioner
(Appeals) in cases under clause (a) of sub-section (1) may file a reference before the High Court in accordance with
section 133 of the Income Tax Ordinance, 2001(XLIX of 2001).
(3) A person or, as the case may be, officer of Inland Revenue aggrieved by an order of the Appellate Tribunal in
cases under clause (b) of sub-section (1) may file a reference before the High Court in accordance with section 133 of
the Income Tax Ordinance, 2001(XLIX of 2001).
(4) The cases pending before the Commissioner (Appeals) having the value of assessment of tax or, as the case
may be, refund of tax exceeding ten million rupees shall on and from the 31st day of December, 2024 stand transferred
to the Appellate Tribunal Inland Revenue.
(5) All cases transferred from the Commissioner (Appeals) to the Appellate Tribunal under sub-section (4) shall
be decided by the Appellate Tribunal within the period provided for under section 132 of the Income Tax Ordinance,
2001 (XLIX of 2001) which period shall commence from the 16th day of June, 2024.”
685 Section 44 was omitted vide the Finance Act, 1996 (IX of 1996). Section 44 at the time of omission was as under:-
“44 Issue of show-cause notice before confiscation of goods or imposition of penalty.-No order under this Act
shall be passed for the confiscation of any goods or for imposition of any penalty unless the owner of the
goods, if any, or the 44-i[person concerned]:--
(a) is served a notice in writing (unless the owner or the 44-ii[person concerned] accepts the notice
orally) of the grounds on which it is proposed to confiscate the goods or to impose the penalty;
(b) is given an opportunity of making a representation against such confiscation 44-iii[or imposition of
penalty] in writing (unless the owner or the 44-iv[person concerned] indicates in writing his
preference to present an oral representation) within such reasonable time as the officer of Sales Tax
may specify; and
(c) is given a reasonable opportunity of being heard in person or through a counselor duly authorised
agent.”
[44-i Substituted for “concerned registered person” vide the Finance Act, 1991]
[44-ii Substituted for “registered person” vide the Finance Act, 1991]
[44-iii Inserted vide the Finance Act, 1991]
[44-iv Substituted for “registered person” vide the Finance Act, 1991]
686 Section 45 was omitted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th June,
2010. Earlier this section was omitted vide the Finance (Amendment) Ordinance, 2010 (III of 2010) promulgated on 6th
February, 2010) & the Finance (Amendment) Ordinance, 2009 {XXII of 2009) promulgated on 28th October, 2009. At
the time of omission Section 45 was as under:-
“45 Power of Adjudication.-45-i[(I) In cases involving assessment of tax, charging of 45-ii[default surcharge),
imposition; of penalty and recovery of amount erroneously refunded 45-iii[or any other contravention) under
this Act or the rules made there under, the jurisdiction and powers of adjudication of the Sales Tax Officers
shall be as follows:-
45-iv
[(i) Additional Collector Cases falling under sub-section (2) of section II and section 36
without any restriction as to the amount of tax involved or
amount erroneously refunded.
(ii) Deputy Collector. (a) Cases falling under sub-section (2) of section 11
(b) and section 36 provided that the amount of tax involved or
the amount erroneously refunded exceeds one million rupees, but
does not exceed two and a half million rupees

[103]
 (iii) Assistant Collector. Cases falling under sub-section (2) of section II and section 36
provided that the amount of tax involved or the amount
erroneously refunded exceeds ten thousand rupees but does not
exceed one million rupees.
(iv) Superintendent Cases falling under sub-section (2) of section II and section 36
provided that the amount of tax “involved or the amount
erroneously refunded does 'hot exceed ten thousand rupees.)
45-v
[((v)]An officer of sales tax with any Such cases as may be notified by the Board:]
other designation
[45-i The existing section was renumbered as sub-section (I) vide the Finance Act, 2006 (III of 2006), assented on
30th June, 2006]
[45-ii Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005]
[45-iii The words were inserted vide the Finance Act, 2004 (11 of 2(04), assented on 30th June, 2004]
[45-iv Serial Nos. (i), (ii) & (iii) were substituted vide the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005). At the time of substitution Serial Nos (i), (ii) & (iii) was as under:-
(i) Collector. Cases falling under sub-section (2) of section II and section 36 of the Act without
any restriction as to the amount of tax involved Or amount erroneously refunded 45-
vi
[or any other contravention]
(ii) Additional tax involved or the amount erroneously refunded 45-vii[or any other contravention)
Collector does not exceed ten million rupees.
(iii Deputy Collector (a) Cases falling under sub-section (I) of section II
(b) Cases falling under sub-section (2) of section II and section 36 of the Act
provided that the amount of tax involved or the amount erroneously refunded 1eI
[or any other contravention] does not exceed two and a half million rupees 45-viii[.]
[45-v Existing S No. (iv) was re-numbered as (v) vide the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005). Existing S No (iv) and the entries relating thereto was added vide the Finance Ordinance, 2002
(XXVII of 2002) promulgated on 15th June, 2002
[45-vi The words were inserted vide the Finance Act, 2004 (II of 2004) assented on 30th June, 2004]
[45-vii The words were inserted vide the Finance Act, 2004 (II of 2004) assented on 30th June, 2004]
[45-viii Substituted for the colon vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June,
2002]
Provided that the Board may, vide notification in the official Gazette vary the jurisdiction and
powers of any officer of Sales Tax or a class of officers of Sales Tax.
Provided further that the Board shall have powers to regulate the system of adjudication including
transfer of cases and extension of time limit in exceptional circumstances.
45-ix
[Explanation.-For the purpose of this section, tax means the principal amount of sales tax 45-x[other than
45-xi
[default surcharge], and in case where only 45-xi[default in charge] is involved, the amount of 45-xi[default
surcharge ]
[45-ix Explanation was added vide The Sales Tax (Amendment) Ordinance, 2000 (XLII of 2000), assented on 5th
September, 2000]
[45-x Substituted the words and commas “other than further tax or additional tax and in a case where only further
tax, whether or not with additional tax, is involved, the amount of further tax and in all other cases additional
tax” vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[45-xi Substituted the words “additional tax” vide the Finance Act, 2005 (VII of 2005), assented on 29th June,
2005]
45-xii
[(2) Notwithstanding anything contained in sub-section (4) of section II and sub- section (3) of section
36 or any other provision of the Act or any other law for the time being in force and
notwithstanding any decision or judgment of any forum, authority or court, the time for
adjudication in all the cases pending as on 3rd June, 2006. shall be deemed always to have been
extended up to 31st December, 2006, from the date on which the time-limit prescribed under sub-
section (4) of section II and sub-section (3) of section 36, expires.]
[45-xii Sub-section (2) was added vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006]
Earlier, the Section 45 was substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution
Section 45 was as under:--
“45 Appeals.-(1) Any person, including the Sales Tax Department aggrieved by any decision or order
made, under this Act by an officer of Sales Tax below in rank than a Collector may, 'within thirty
days of the date of communication of such decision or order appeal to the Collector of Sales Tax.
(Appeals):

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687
[45A. Powers of the Board 688[and 689[Commissioner] to call for records.-(1) The Board may, of its
own motion 690[or otherwise], call for and examine the record of any departmental proceedings under this
Act or the rules made there under for the purpose of satisfying itself as to the legality or propriety of any

Provided that an appeal preferred after the expiry of thirty days may be-admitted by the
Collector of Sales Tax (Appeals) if he is satisfied that the 'appellant has sufficient cause for not
preferring the appeal within the specified period 45- xiii[:]
45-xiv
[Provided further that the appeal shall be accompanied by a fee of five hundred
rupees to be paid in such manner as the Board may prescribe.]
(2) The Collector of Sales Tax (Appeals) may, 45-xv[***] after giving both parties, to the
appeal an opportunity of being heard, pass such-order as he thinks tit, confirming, varying,
altering, setting aside or annulling the decision or order appealed against:
Provided that the Collector of Sales Tax (Appeals) may also confirm vary, alter. set aside or annual
the penalty imposed under this Act for reasons to be recorded in writing,
45-xvi
[(2a) In deciding an appeal, the Collector of Sales Tax (Appeals) may make such further
inquiry as may be necessary but he shall not remand the case to an officer who made the order for
deciding it a fresh.]
(3) Any person desirous of filing an appeal under sub-section (I) against any decision or
order relating to any tax demanded or any penalty imposed under the Act shall, before tiling the
appeal, deposit the tax demanded and the penalty imposed:
Provided -that, where in any case, the appellate authority is of the opinion that the deposit of tax
demanded or the penalty imposed is likely to cause undue hardship to the appellant, it may
dispense 'with such- deposit subject to such conditions as it may deem tit to impose:
Provided further that in any particular case, the Collector of Sales Tax (Appeals) may direct that
pending decision of the appeal. the tax demanded, or penalty imposed, shall be paid by the
appellant in suitable installments spreading over a period not exceeding six months from the date
of such direction.]”
[45-xiii Substituted for the “full stop” vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[45-xiv Proviso was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[45-xv The words “after making such further inquiry as may be necessary and” was omitted vide the .Finance Act,
1999 (IV of 1999), assented on 29th June, 1999]
[45-xvi Sub-section (2a) was inserted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
For tha first time,, Section 45 was substituted vide the Finance Act, 1996 (IX of 1996) At the time of substitution section
45 was as under:--
“45 Appeals.-(1) Any person including the Sales Tax Department aggrieved by any decision or order
made under this Act by an officer of Sales Tax lower in rank than a Collector may, within thirty
days of the date of communication of such decision or order, appeal to the Collector (Appeals).
Provided that an appeal preferred after-the expiry of thirty days may be admitted by the
Collector (Appeals) if the is satisfied that the appellant has sufficient cause for not preferring the
appeal within that period.
(2) The Collector (Appeals) may, after making such further inquiry as may be necessary and
after giving the appellant an opportunity of being heard, pass such order as he thinks fit,
remanding, confirming, altering or annulling the decision or order appealed against
(3) Any person desirous of appealing under sub-section (I) against any decision or order
relating to any tax demanded or any penalty levied under the Act shall, before filing the appeal,
deposit the tax demanded or the penalty levied or both the tax and penalty 45-xvi[:]
[46-xvi Substituted for “full stop” vide Finance Act, 1993]
45-xvii
[Provided that. where In any case, the appellate authority is of the opinion that the
deposit of tax demanded or the penalty levied is likely to cause undue hardship to the appellant, it
may dispense with such deposit in whole or a part thereof, subject to such conditions as it may
deem fit to impose.]”
[45-xvii Proviso added vide Finance Act, 1993]
687 Section 45A was inserted vide Finance Act, 1993
688 Substituted for the comma, words and brackets 45A-i[, Collector and Collector (Adjudication)]” vide the Finance Act,
2005 (VII of 2005), assented on 29th June, 2005
[45A-i Substituted the words “and Collector” vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
689 Substituted the word “Collector” vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 20I0), effective from
5th June, 20I0. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (III of 20I0)
promulgated on: 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009), promulgated on:
28th October, 2009
690 Inserted vide Finance Act, 2015

[105]
 691
decision or order passed therein by an Officer of [Inland Revenue], it may pass such order as it may
think fit:
Provided that no order imposing or enhancing any penalty or fine requiring payment of a greater
amount of sales tax than the originally levied shall be passed unless the person affected by such order has
been given an opportunity of showing cause and of being heard.
(2) No proceeding under 692[this section] shall be initiated in a case where an appeal under
693
section [45B] or section 46 is pending.
(3) No order shall be made under this section after the expiry of 694[five] years from the date
of original decision or order of the subordinate officer referred to in sub-section (1)
695
[(4) The 696[Commissioner] may, suo moto, call for and examine the record of any proceeding
under this Act or the rules made there under for the purpose of satisfying himself as to the legality or
propriety of any decision or order passed by an officer of 697[Inland Revenue] subordinate to him, and
pass such order as he may deem fit.]]
698
[45B. Appeals.- 699[(1) Any person, other than an State Owned Enterprises (SOE), aggrieved by any
decision or order passed under sections 10,11A,11D, 11E, 11F ,21,33, 34 and 66 of this Act, by an officer
of Inland Revenue may, within thirty days of the date of receipt of such decision or order prefer appeal to
the Commissioner Inland Revenue (Appeals):

691 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (Ill of 20I0)
promulgated on 6th February, 20I0 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2010
692 Substituted for the words, brackets and figure “sub-section (1) vide the Finance Act, 2008 (I of 2008), assented on 26th
June, 2008
693 Substituted for the figure “45” vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002
694 Substituted the word “three” vide the Finance Ordinance, 2000 (XXI of 2000)
695 Sub-section (4) was substituted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005. At the time of
substitution sub-section (4) was as under:--
45A-ii
[(4) The Collector or Collector (Adjudication). may. in respect of any case decided by an officer subordinate to
him, exercise all or any of the powers of the Board specified 'in sub-section (I).]
[45A-ii Sub-section (4) substituted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003). At the time of
substitution Sub-section (4) was as under:--
“(4) The Collector may exercise the powers conferred on the Board by sub-section (I) in respect of any
case decided vide an officer subordinate to him.”
696 Substituted the word “Collector” vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 20I0), effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (III of 20 I 0),
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
697 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010.Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (III of 20I0)
promulgated on 6th February, 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2010
698 Section 45B was inserted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002
699 Sub-section (1) was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Sub-section
(1) was as under:-
“(1) Any person, other than the Sales T ax Department, aggrieved by any decision or order passed under sections
10, 11, 25, 36, or 66, by an officer of Inland Revenue may, within thirty days of the date of receipt of such decision or
order, if the value of the assessment of tax or, as the case may be, refund of the tax does not exceed ten million rupees,
prefer appeal to the Commissioner Inland Revenue (Appeals):
Provided that an appeal preferred after the expiry of thirty days may be admitted by the Commissioner Inland
Revenue (Appeals) if he is satisfied that the appellant has sufficient cause for not preferring the appeal within the
specified period.”

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 Provided that an appeal preferred after the expiry of thirty days may be admitted by the
Commissioner Inland Revenue (Appeals) if he is satisfied that the appellant has sufficient cause for not
preferring the appeal within the specified period:
Provided further that registered person shall have an option to directly file an appeal before
Appellate Tribunal Inland Revenue without availing right of Appeal under this section.]
700
[***]
701
[(1A) An appeal under sub-section (1) shall-
(a) be in the prescribed form;
(b) be verified in the prescribed manner;
(c) state precisely the grounds upon which the appeal is made;
(d) be accompanied by the prescribed fee specified in sub-section (1B); and
(e) be lodged with the Commissioner (Appeals) within the time set out in sub-section
(1).
(1B) The prescribed fee shall be–
(a) in the case of an appeal against an assessment–
(i) where the appellant is a company, five thousand rupees; or
(ii) where the appellant is not a company, two thousand and five hundred rupees; and
(b) in any other case–
(i) where appellant is a company, five thousand rupees; or
(ii) where the appellant is not a company, one thousand rupees.]
702 703
[ [(1C)] Where in a particular case, the Commissioner (Appeals) is of the opinion that the
recovery of tax levied under this Act, shall cause undue hardship to the taxpayer, he, after affording
opportunity of being heard to the Commissioner or officer of Inland Revenue against whose order appeal
has been made, may stay the recovery of such tax for a period not exceeding thirty days in aggregate.]
(2) The 704[Commissioner Inland Revenue] (Appeals) may, after giving both parties to the
appeal an opportunity of being heard, pass such order as he thinks fit, confirming, varying, altering,
setting aside or annulling the decision or order appealed against 705[:]
706
[Provided that such order shall be passed not later than 707[one hundred and twenty] days from
the date 'of filing of appeal or within such extended period as the 708[Commissioner] (Appeals) may, for
reasons to be recorded in writing fix:

700 Proviso was omitted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020. At the time of omission
proviso was as under:-
“Provided further that the appeal shall be accompanied by a fee of one thousand rupees to be paid in such manner as the
Board may prescribe]”
701 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
702 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
703 Re-numbered vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
704 Substituted the words “Collector of Sales Tax” vide the Finance Act, 2010 (XVI of 20I0), assented on 30th June, 2010
effective from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010
(III of 2010) promulgated on 6th February, 2011 & the Finance (Amendment) Ordinance, 2009 {XXII of 2009)
promulgated on 28th October. 2009
705 Substituted for the full stop vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
706 Provisos was added vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005

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 Provided further that such extended period shall, in no case, exceed 709[sixty] days 710[:]] .
711
[Provided further that any period during which the proceedings are adjourned on account of a
stay order or Alternative Dispute 'Resolution proceedings or the time taken through adjournment by the
petitioner not exceeding thirty days shall be excluded from the computation of aforesaid periods.]
(3) In' deciding an appeal, the 712[Commissioner Inland Revenue] (Appeals) may make such
further inquiry as may be necessary provided that he shall not remand the case for de novo consideration .
713
[***]
714
[(5) The Commissioner (Appeals) shall not admit any documentary material or evidence
which was not produced before the Officer Inland Revenue unless the Commissioner (Appeals) is
satisfied that the appellant was prevented by sufficient cause from producing such material or evidence
before the Officer Inland Revenue.]
46. Appeals to Appellate Tribunal.- 715[(1) Any person including an officer of inland revenue not
below the rank of Additional Commissioner aggrieved by an order of the Commissioner (Appeals) under

707 Substituted for the words, 45B-iv[one hundred and twenty] vide the Finance Act, 2009 (I of 2009), assented on 30th June,
2009
[45B-iv Substituted the word “ninety” vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008]
708 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th Julie, 20l0. Earlier the same amendment was made vide the Finance (Amendment) Ordinance; 20I0 (III of 20I0)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
709 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th Julie, 20l0. Earlier the same amendment was made vide the Finance (Amendment) Ordinance; 20I0 (III of 20I0)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
710 Substituted for the full stop vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009
711 Proviso was added vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009
712 Substituted the words “Collector of Sales Tax” vide the Finance Act, 2010 (XVI of 20I0 assented on 30th June, 2010
effective from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010
(III of 2010) promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009)
promulgated on 28th October. 2009
713 Sub-section (4) was omitted vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006. At the time of
omission sub-section (4) was as under:--
“(4) Any person desirous of preferring an appeal under sub-section (1) against any decision or order relating to
any tax demanded or any penalty imposed under this Act shall, before presenting the appeal, deposit 15% of
the principal amount of tax under such decision or order and subject to such deposit, recovery of the
remaining amount of tax due shall be stayed for a period not exceeding six months following the day on
which the fifteen per cent amount of principal tax was deposited, unless the case is finally decided.]
Provided that, where in any case, the Collector of Sales Tax (Appeals) is satisfied that the deposit
of tax as aforesaid is likely to cause undue hardship to the appellant, he may dispense with such deposit
subject to such conditions or restrictions he may deem fit to impose:
Provided further that in any particular case, the Collector of Sales Tax (Appeals) may direct that
pending decision of the appeal, the tax, shall be paid by the appellant in suitable installments spreading over a
period not exceeding six months from the date of such direction:
Provided also that such interim order or orders, as the case may be, dispensing with deposit of tax
as hereinbefore prescribed shall cease to have effect on the expiration of a total period of six months
following the day on which the first interim order is made, unless the case is finally decided. or the interim
order is withdrawn by the Collector of Sales Tax (Appeal) earlier
714 Added vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
715 Sub-section (1) was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Sub-section
(1) was as under:-
“(1) Subject to section 43A, any person, other than an SOE, aggrieved by any order, excluding the order of
suspension or blacklisting under sub-section (2) of section 21, passed by an officer of Inland Revenue, or the Board or
Commissioner (Appeals) under this Act or the rules made there under may, within thirty days of the receipt of such
order, prefer an appeal to the Appellate Tribunal or, as the case may be, a reference to the High Court:

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this Act or the rules made thereunder; or any person other than SOE aggrieved by an order passed by
officer of inland revenue when second proviso to section 45B applies, may within thirty days of the
receipt of such order, prefer an appeal to the Appellate Tribunal:
Provided that where sub-section (11) of section 134A of Income Tax Ordinance, 2001 (XLIX of
2001) shall apply, an SOE may prefer an appeal under this sub-section.]
716
[(2) The Appellate Tribunal may admit, hear and dispose of the appeal as per procedure laid
down in sections 717[131 and 132 of the Income Tax Ordinance, 2001 (XLIX of 2001)], and rules made
there under.]
718
[***]
719
[***]

Provided that where sub-section (11) of section 134A of Income Tax Ordinance, 2001(XLIX of 2001) shall
apply, an SOE may prefer an appeal under this sub-section.”
716 Sub-section (2) was substituted vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009. At the time of
substitution Sub-section (2) was as under—
“(2) The Appellate Tribunal may admit an appeal preferred after the period of limitation specified in sub-section
(1) if it is satisfied that there was sufficient cause for not presenting it within the specified period.”
717 Substituted for the words, figures, commas and brackets” 194-A, 194-B, 194-C of the Customs Act, 1969 (IV of 1969)”
vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010 effective from 5th June, 2010. Earlier the same
amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010) promulgated on 6th February, 2010)
& the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 18th October, 2009
718 Sub-section (2A) was omitted vide the Tax Laws (Amendment) Act, 2024 (Act No. V of 2024) dated 9th May, 2024. At
the time of omission sub-section (2A) was as under:-
“(2A) All appeals and proceedings under this Act pending before the Customs, Excise and Sales Tax Appellate
Tribunal constituted under section 194 of the Customs Act 1969 (IV of 1969) shall stand transferred to the Appellate
Tribunal constituted under section 130 of the Income Tax Ordinance 2001 (XLIX of 2001) with effect from the 28th
day of October, 2009.”
719 Sub-sections (3), (4), (5), (6), (7), (8) and (9) was omitted vide the Finance Act, 2009 (I of 2009), assented on 30th June,
2009). At the time of omission sub-sections (3) to (9) were as under:--
(3) The appeal shall be accompanied by 46-ix[fee of 46-x[one thousand] rupees paid in such manner as the Board
may prescribe]
[46-ix Substituted for the words “fee of one hundred rupees” vide the finance Act.1999 (IV of 1999), assented on
29th June,1999]
[46-x Substituted for the words”seven hundred and fifty” vide the Finance Ordinance, 2002 (XXVII of 2002)
promulgated on 15th June, 2002]. Earlier, the words “seven hundred and fifty” were sSubstituted the words
“one thousand” vide the Finance Ordinance, 2001 (XXV of 200I), dated 18th June, 200I]
(4) The Appellate Tribunal, after giving the parties to the appeal, an opportunity of being heard may pass such
orders in relation to the matter before it as it thinks fit 46-xi[:]
46-xii
[Provided that when any such order amounts to an interim order staying the recovery of tax,
such order shall cease to have effect on the expiration of a period of six months following the day on which it
is made unless the case. is finally decided, or the interim order is withdrawn by the Tribunal earlier 46-xiii[:]
46-xiv
[Provided further that such interim order or orders, as the case may be, shall cease to have
effect on the expiration of a total period of six months following the day on which the first interim order is
made, unless the case is finally decided, or the interim order is withdrawn by the Appellate Tribunal earlier.]
[46-xi Substituted for the full stop vide the Tax Law (Amendments) Ordinance, 1999 (XXII of 1999) promulgated on
17th December, 1999]
[46-xii Proviso was added vide the Tax Law (Amendments) Ordinance, 1999 (XXII of 1999) promulgated on 17th
December, 1999]
[46-xiii Substituted for the full stop vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[46-xiv Proviso was added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
(5) The Appellate Tribunal shall send a copy of its order disposing the appeal to the appellant and to the 46-xv[the
concerned Officer of Sales Tax].
[46-xv Substituted the words and brackets “Collector of Sales Tax or the Collector of Sales Tax (Appeals) as the
case may be vide the Finance Ordinance, 2000 (XXI of 2000]
46-xvi
[(6) All appeals relating to the Sales Tax Act, 1951. pending before the Income Tax Appellate Tribunal at the
commencement of the Finance Act, 1997 shall stand transferred for disposal to the Appellate Tribunal.]
[46-xvi Sub-section (6) was added vide the Finance Act, 1997 (XXII of 1997)]

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720
[47. Reference to the High Court.- 721[(1) Within sixty days of communication of the order of the
Appellate Tribunal, the aggrieved person or the Commissioner may submit a reference in the prescribed

46-xvii
[(7) Order under this section shall be passed within 46-xviii[eight] months of filing of appeal.]
[46-xvii Sub-section (7) was substituted vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005 and the
word.]
[46-xiii Substituted for the word, “six” vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008]
At the lime of substitution sub-section (7) was as under:--
46-xix
[(7) Order under this section shall be passed within sixty days of filing of appeal or within such extended
period as the Tribunal may, for reasons to be recorded in writing fix. provided that such extended
period shall in no case exceed ninety days.”
[46-xix Sub-section (7) was added vide the Finance Ordinance, 2000 (XXI of 2000)]
46-xx
[(8) Subject to the provisions of this Act or any other law for the time being in force, the Appellate Tribunal shall
have power to regulate its own procedure and the procedure of the Benches thereof in all matters arising out
of the exercise of its powers or of the discharge of its functions, including the places at which the Benches
shall hold their sittings.]
[46-xx Sub-section (8) added vide the Finance Ordinance, 2001 (XXV of 200I) made on 18th June, 200I]
46-xxi
[(9) The Chairman or any other member of the Appellate Tribunal authorized in this behalf by the Chairman may,
sitting singly, dispose of any case which has been allotted to the bench of which he is member where--
(a) in any disputed case, other than a case where the determination of any question having a relation
to the rate of sales tax or to the value of taxable goods for purposes of assessment is in issue or is
one of the points in issue, the difference in tax involved or the tax involved 46-xxii[does not exceed 46-
xxiii
[ten million] rupees]; or
(b) the amount of fine or penalty involved 46-xxiv[***] does not exceed 46-xxv[ten million] rupees.]”
[46-xxi Sub-section (9) added vide the Finance Act, 2003 (I of 2003), assented on 10th June, 2003]
[46-xxii The words were inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[46-xxiii Substituted the word xiva[fifteen hundred thousand” vide the Finance Act, 2008 (I of 2008), assented on 26th
June, 2008]
[46-xxiv The semicolon omitted by the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
[46-xxv Substituted the word “five” vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006]
720 Section 47 was substituted vide the Tax Laws (Amendment) Act, 2024 (Act No. V of 2024) dated 9th May, 2024. At the
time of substitution section 47 was as under:-
“47. Reference to High Court.-(1) Within ninety days of the communication of the order of the Appellate
Tribunal under sub-section (2) of section 46, the aggrieved person or any officer of Inland Revenue not below
the rank of an Additional Commissioner, authorized by the Commissioner, may prefer an application in the
prescribed form along with a statement of the case to the High Court, stating any question of law arising out
of such order.
(2) The statement to the High Court referred to in sub- section (1), shall set out the facts, the
determination of the Appellate Tribunal and the question of law, which arises out of its order. -
(3) Where, on an application made under sub-section (1), the High Court is satisfied that a question of
law arises out of the order referred to in sub-section (1), may proceed to hear the case.
(4) A reference to the High Court under this section shall be heard by a bench of not less than two
Judges of the High Court and, in- respect of the reference, the provisions of section 98 of the Code of Civil Procedure,
1908 (Act V of 1908) shall apply, so far as may be, notwithstanding anything contained in any other law for the time
being in force.
(5) The High Court upon hearing a reference under this section shall decide the question of law raised
by the reference and deliver judgment thereon specifying the grounds on which such judgment is based and the order of
the Tribunal shall stand modified accordingly. The Court shall send a copy of the judgment under the seal of the Court
to the Appellate Tribunal.
(6) The cost of any reference to the High Court shall be in the discretion of the Court.
(7) Notwithstanding that are reference has been made to the High Court, the tax shall be payable in
accordance with the order of the Appellate Tribunal.
Provided that, if the amount of tax is reduced as a result of the judgment in the reference by the High Court,
and amount of tax : found refundable by the High Court, the High Court may on application by an Additional
Commissioner authorized by the Commissioner within thirty days of the receipt of the judgment of the High Court that
he intends to seek leave to appeal to the Supreme Court, make an order authorizing the Collector to postpone the refund
until the disposal of the appeal by the Supreme Court.
(8) Where recovery of tax has been stayed by the High Court by an order, such order shall cease to
have effect on the expiration of a period of six months following the day on which it is made unless the reference is
decided, or such order is withdrawn, by the High Court earlier.

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form along with a statement of the case and complete record of the Appellate Tribunal to the High Court,
stating any question of law arising out of such order.]
(2) Provisions of section 133 of the Income Tax Ordinance, 2001 (XLIX of 2001) and rules
made thereunder relating to a reference to the High Court shall, mutatis mutandis, apply to references to
the High Court under this Act.]
722
[47A. Alternative dispute resolution.-(1) Notwithstanding any other provision of this Act, or the rules
made thereunder, an aggrieved person in connection with any dispute pertaining to-

(9) Section 5 of the Limitation Act, 1908 (IX of 1908) shall apply to an application made to the High
Court under sub-section (1).
(10) An application under sub-section (1) by a person other than the Additional Commissioner
authorized by the Commissioner shall be accompanied by a fee of one hundred rupees.
(11) Notwithstanding anything contained in any provision of this Act, where any reference or appeal
was filed with “the approval of Commissioner by the officer of lower rank that the Commissioner, and the reference or
appeal is pending before an appellate forum or the Court, such reference or appeal shall always be deemed to have been
so filed by the Commissioner.”
721 Sub-section (1) was substituted vide Finance Act, 2025, dated 39th June, 2024. At the time of substitution Sub-section
(1) was as under:-
“(1) Within thirty days of the communication of the order of the Appellate Tribunal or, as the case may be,
Commissioner (Appeals), the aggrieved person or the Commissioner may prefer an application in the prescribed form
along with a statement of the case and complete record of the Appellate Tribunal or, as the case may be, Commissioner
(Appeals) to the High Court, stating any question of law or a mixed question of law and fact arising out of such order.”
722 Section 47A was substituted vide the Tax Laws (Amendment) Act, 2024 (Act No. V of 2024) dated 9th May, 2024. At the
time of substitution section 47A was as under:-
“47A. Alternative Dispute Resolution.-(1) Notwithstanding any other provision of this Act, or the rules made
thereunder, an aggrieved person in connection with any dispute pertaining to—
(a) the liability of tax of one hundred million rupees or above against the aggrieved person or admissibility of
refund, as the case may be;
(b) the extent of waiver of default surcharge and penalty; or
(c) any other specific relief required to resolve the dispute, may apply to the Board for the appointment of a
committee for the resolution of any hardship or dispute mentioned in detail in the application, which is under
litigation in any court of law or an appellate authority, except where criminal proceedings have been initiated.
(2) The application for dispute resolution shall be accompanied by an initial proposition for resolution of the
dispute, including an offer of tax payment.
(3) The Board may, after examination of the application of an aggrieved person, appoint a committee, within
fifteen days of receipt of such application in the Board, comprising,—
(i) a retired judge not below the rank of a judge of a High Court, who shall also be the Chairperson of the
Committee, to be nominated by the Board from a panel notified by the Law and Justice Division for such
purpose;
(ii) Chief Commissioner Inland Revenue having jurisdiction over the case; and
(iii) person to be nominated by the registered person from a panel notified by the Board comprising –
(a) chartered accountants, cost and management accountants and advocates having a minimum of ten years’
experience in the field of taxation;
(b) officers of the Inland Revenue Service who stood retired in BPS 21 or above; or
(c) reputable businessmen as nominated by Chambers of Commerce and Industry:
Provided that the registered person shall not nominate a chartered accountant or an advocate if the
said chartered accountant or the advocate is or has been an auditor.
(4) The Board shall communicate the order of appointment of committee to the aggrieved person, court of law or
the appellate authority where the dispute is pending and the concerned Commissioner.
(5) The committee appointed under sub-section (3) shall examine the issue and may, if it deems necessary,
conduct inquiry, seek expert opinion, direct any officer of the Inland Revenue or any other person to conduct
an audit and shall decide the dispute by majority, within forty-five days of its appointment extendable by
another fifteen days for the reasons to be recorded in writing.
(6) The decision by the committee under sub-section (5) shall not be cited or taken as a precedent in any other
case or in the same case for a different tax year.
(7) The recovery of tax payable by a registered person in connection with any dispute for which a committee has
been appointed under sub-section (3) shall be deemed to have been stayed on the constitution of committee
till the final decision or dissolution of the committee, whichever is earlier.

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 (a) the liability of tax of fifty million rupees or above against the aggrieved person or
admissibility of refund, as the case may be;
(b) the extent of waiver of default surcharge and penalty; or
(c) any other specific relief required to resolve the dispute,
may apply, except where criminal proceedings have been initiated, to the Board for the appointment of a
committee for the resolution of any hardship or dispute mentioned in detail in the application:
Provided that where the aggrieved person is a state-owned enterprise (SOE), the limit of tax
liability of fifty million rupees or above mentioned in clause (a) shall not apply and it shall be mandatory
for such aggrieved SOE to apply to the Board for the appointment of a committee for the resolution of
any dispute under this section:
Provided further that no suit, prosecution, or other legal proceedings shall lie against the SOE in
relation to the dispute resolved under this section.
Explanation.-State-owned enterprise shall have the same meaning as assigned thereto in the State-
Owned Enterprises (Governance and Operations) Act, 2023 (VII of 2023).
(2) Provisions of section 134A of the Income Tax Ordinance, 2001 (XLIX of 2001) and rules
made thereunder relating to alternative dispute resolution shall, mutatis mutandis, apply to applications
for alternative dispute resolution under this Act.]
723
[47AB. Saving.-The period of limitation provided in clause (c) of sub-section (1) of section 46 and
sub-section (1) of section 47 shall continue to apply where any decision of the commissioner (Appeals) or
the Appellate Tribunal is received prior to the date of commencement of the Tax Laws (Amendment) Act,
2024 (V of 2024).]
724
[***]

(8) The decision of the committee under sub-section (5) shall be binding on the Commissioner when the
aggrieved person, being satisfied with the decision, has withdrawn the appeal pending before the court of law
or any appellate authority in respect of dispute as mentioned in sub-section (1) and has communicated the
order of withdrawal to the Commissioner:
Provided that if the order of withdrawal is not communicated to the Commissioner within sixty
days of the service of decision of the committee upon the aggrieved person, the decision of the committee
shall not be binding on the Commissioner.
(9) Subject to sub-section (10), the Commissioner shall also withdraw the appeal, if any, pending before any
court of law or an appellate authority in respect of dispute as mentioned in sub-section (1) within thirty days
of the communication of the order of withdrawal by the aggrieved person to the Commissioner.
(10) The aggrieved person shall make the payment of sales tax and other duty or taxes and within such time as
decided by the committee under sub section (5) and all decisions and orders made or passed shall stand
modified to that extent.
(11) If the committee fails to decide within the period of sixty days under sub-section (5), the Board shall dissolve
the committee by an order in writing and the matter shall be decided by the court of law or the appellate
authority where the dispute is pending under litigation.
(12) The Board shall communicate the order of dissolution of the committee to the aggrieved person, court of law
or the appellate authority and the Commissioner.
(13) On receipt of the order of dissolution of the committee, the court of law or the appellate authority shall decide
the appeal within six months of the communication of said order.
(14) The Board may prescribe the amount to be paid as remuneration for the services of the members of the
committee, other than the member appointed under clause (ii) of sub-section (3).
(15) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this
section;”
723 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
724 Chapter VIII-A was omitted vide the Finance Ordinance, 2000 (XXI 0(2000). At the time of Omission Chapter VIII- A
was as under:--
*
[CHAPTER - VIIIA
SETTLEMENT OF CASES

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47A Indirect Taxes Settlement Commission.-(1)The Federal Government shall appoint an Indirect Taxes
Settlement Commission to exercise the powers and perform the functions conferred on it under this Chapter
(2) The Commission shall consist of a Chairman and as many members as may be necessary, and shall
function within the Division of the Federal Government dealing with revenue.
(3) The members of the Commission shall be appointed by the Federal Government from amongst
persons of integrity and outstanding ability having special knowledge of, and experience in matters relating to customs,
central excise and sales tax laws and procedures, and having not less than twenty two years of service in the customs,
central excise or sales tax department:
Provided that the Federal Government may also appoint suitable number of associate members, not
exceeding one associate member for each bench of the Commission, from amongst persons of integrity and outstanding
ability who are qualified chartered accountants or cost accountants or possess such qualifications and experience as
may be specified by the Federal Government.
(4) The terms, conditions and tenure of service of associate members shall be determined by the
Federal Government.
[* Chapter VIII-A was added vide the Finance Act, 1996 (IX of 1996)]
47B Definitions.-In this Chapter, unless the context otherwise requires,--
(i) “associate member” means an associate member appointed under the proviso to sub- section (3) of
section 47A;
(ii) “case” means any proceedings under sections II, 36, 37A, 45, 5A,46 and 47 or the rules which may
be pending on the date of making the application under sub-section (I) of section 470:
Provided that where any application for review, appeal or reference has been filed after the period
of limitation and which has not been admitted, such appeal, application for revision or reference, shall not be
deemed to be a proceeding pending within the meaning of this clause;
(iii) “Chairman” means the senior most member of the Commission, to be appointed by the Federal
Government as the Chairman of the omission;
(iv) “Commission” means the Indirect Taxes Settlement Commission appointed under section 47A; and
(v) “member” means a member of the Commission, and includes the Chairman thereof
47C Powers and functions of the Commission.-(1) The powers and functions of the Commission may be
exercised and performed by benches constituted by the Chairman from amongst the members and associate
members.
(2) A bench shall, ordinarily,' consist of two members and an associate member and shall be presided
over by the Chairman:
Provided that where the applicant makes an application, in writing, for decision of his case without the
associate member, the bench shall be so constituted:
Provided further that, where the Chairman is not a member of the bench, the Chairman may authorize any
other member to perform his functions on the bench
(3) No act or proceeding of the Commission shall be invalid merely on the grounds of existence of any
vacancy of an associate member on the bench
(4) Subject to the provisions of this Act, the Commission shall have the 'power to regulate its own
procedure, and the procedure of benches in all matters arising out of the performance of its functions,
including the places at which the benches shall hold their sittings
(5) If the members of a bench differ in opinion as to the decision to be given on any issue,--
(a) such issue shall be decided according to the opinion of the majority, if there is a majority;
(b) if the members are equally divided and the Chairman is not himself a member of the
bench, the case shall be referred to the Chairman and the decision of the Commission
shall be expressed in terms of opinion of the Chairman; and
(c) if the members are equally divided and the Chairman of the Commission is himself a
member of the bench, the opinion of the Chairman shall prevail, and the decision of the
Commission shall be expressed in terms of opinion of the Chairman.
(6) In addition to the powers conferred on the Commission under this Chapter, it shall have all the
powers which are vested in an officer of Sales Tax for the proper performance of its functions under this
Chapter.
47D Application for settlement of cases.-(1) Any person aggrieved by any order or decision may, at any stage of
his case, make an application in such form and in such manner as may be prescribed, containing full and true
disclosure of his circumstances and the facts which he may not have disclosed earlier, the manner in which he
evaded or avoided payment of sales tax and the additional tax payable in this regard or claimed excessive
amount of input tax credit o refund; and such other' particulars as may be. prescribed, to the Commission to
have the case settled, and any such application shall be disposed of in the manner provided hereinafter:
Provided that no such application shall be made unless the total amount of tax payable exceeds one
hundred thousand rupees

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 (2) Every application made under sub-section (1) shall be accompanied by a fee of one thousand
rupees
(3) An applicant, once having made an application under sub-section (1), shall not be entitled to
withdraw it.
47E Disposal of applications by the Commission.-(1) The Commission may, before disposing of any
application, call for the particulars, as it may require, in respect of the case in the application brought before it
or cause further inquiries to be made by the Collector and on the basis of his report and having regard to the
nature and circumstances of the case, it may, by order, allow the application to proceed or reject it:
Provided that an application shall not be rejected under this sub-section unless the applicant is
given an opportunity of being heard.
(2) Notwithstanding anything contained in sub-section (I), an application shall not proceed under that
sub-section if the Collector objects to such application on the ground that the particulars of loss of tax on the
part of the applicant or perpetration of tax fraud under this Act has been established or is likely to be
established by any officer of Sales Tax:
Provided that where the Commission does not agree with the objections raised by the Collector, it
may, after giving the Collector an opportunity or being heard, accept the application for being proceeded with
under sub-section (l)
(3) Where an application is allowed to proceed with under sub- section (I), the Commission may call
for the relevant records from the Collector, and after examination of such records. if the Commission is of the
opinion that any further inquiry in the matter is necessary, it may direct the Collector to make or cause to be
made such further inquiry and furnish a report on the matters within such time as it may fix.
(4) After examination of the records and the report of the Collector received under sub-section (1) or
sub-section (3), and after giving an opportunity to the applicant and to the Collector to be heard, in person or
through their authorised representatives, and after examining such further evidence as may be placed before it
or obtained, the Commission may, in accordance with the provisions of this Act, pass such order as it thinks
fit on the matters enumerated in the application and reported to it by the Collector under sub-section (I) or
sub- section (3).
(5) Every order passed under sub-section (4), shall provide for the terms of settlement, including any
demand of tax, additional tax, penalty and fine or prosecution proceedings and the manner in which any sum
due under the settlement shall be paid, and all the matters to 'make the settlement effective and shall also
provide that the settlement shall be void if it is subsequently found by the Commission that it has been
obtained by fraud or misrepresentation.
(6) Where a settlement becomes void, the proceedings with respect to the matters relating to. the
settlement shall be revived from the• stage at which the application was allowed, except the matters pending
in appeal or revision before making an application under sub-section (I) of section 470, and the concerned
officer of Sales Tax may, notwithstanding anything contained in any other provision of this Act, complete
such proceedings.
(7) The Commission may, if it is of the' opinion that any person who has made an application under
section 470 does not cooperate with the Commission in the proceedings before it, send the case back to the
officer of Sales Tax, if such case was pending for decision or order at the time application under that section
was made, who shall thereupon dispose of the case in accordance with the provisions of this Act as if no
application under section 470 had been made.
47F Recovery of sums due under an order of settlement.-Any sum specified in an order of settlement passed
under sub- section (4) of section 47E shall, subject to such conditions as may be specified therein, be
recovered, and any additional tax or penalty, for default in making payment of such sum, may be imposed
and recovered in accordance with the provisions of this Act:
47G Bar on subsequent application for settlement in certain cases.-No fresh application for settlement shall be
made where--
(i) an order of the settlement passed under section 47E provides for the imposition of a penalty on the
person on the ground of loss of sales tax; or
(ii) a person is convicted of any offence under section, 37A; or
(iii) a case is sent back to the officer of Sales Tax by the Commission for assessment or re-assessment
for any reason; or
(iv) the settlement becomes void under this Chapter.
47H Order of settlement to be conclusive.-Every order of the Commission passed under section 47E -shall be
conclusive as to the matter stated therein and no matter covered by such order shall, save or otherwise as
provided in this Chapter, be re-opened in any proceeding under this Act or under any law for the time being
in force.
471 Power of the Commission to re-open proceedings.-If the Commission is, for reasons to be recorded in
writing, of the opinion that for the proper disposal of the case pending before it, it is essential to re-open any
proceedings connected with the case but which have been completed under this Act by any officer of Sales

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 CHAPTER-IX
RECOVERY OF ARREARS
48. Recovery of arrears of tax.-(1) 725[Subject to sub-section (IA), where] any amount of tax
726
[***] is due from any person, the officer of 727[Inland Revenue] may:--
(a) deduct the amount from any money owing to person from whom such amount is
recoverable and which may be at the disposal or in the control of such officer or any
officer of Income Tax, Customs or Central Excise Department;
(b) require by a notice in writing any person who holds or may subsequently hold any money
for or on account of the person from whom tax may be recoverable to pay to such officer
the amount specified in the notice;
(c) stop removal of any goods from the business premises of such person till such time the
amount of tax is paid or recovered in full;
728
[(ca) require by a notice in writing any person to stop clearance of imported goods or
manufactured goods or attach bank accounts;]
(d) seal the business premises till such time the amount of tax is paid or recovered in full;
(e) attach and sell or sell without attachment any movable or immovable property of the
registered person from whom tax is due 729[;] 730[and]
731 732
[(f) [***] recover 'such amount by attachment and sale of any movable or immovable
property of the guarantor,' person; company, bank or financial institution, where a
guarantor or any other person, company, bank or financial institutional fails to make
payment under such guarantee,' bond or instrument] 733[.]

Tax before the application under section 470 was made, it may, with the concurrence of the applicant, re-
open such proceedings and pass such order thereon as it thinks fit, as if the case in relation to which the
application for settlement had been made by the applicant under that section covered such proceedings as
well:
Provided that no proceedings shall be re-opened by the Commission under this section if the period
between the end of the tax period to which such proceedings relate and the date of application for settlement
under section 470 exceeds five .years.
47J Proceedings before the Commission to be judicial proceeding.-Any proceedings before the Commission
shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Pakistan Penal
Code, (Act XLV of 1860) and for the purpose of section 196 thereof.
47K Communications of orders.-The, Commission, shall communicate its order to the applicant, the Collector,
adjudicating officer and the officer in charge of the agency which detected loss of tax.]
725 Substituted the word “where” vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
726 The words and comma ''Ievied, penalty imposed or demand raised under any bond or other instrument executed under
this Act” was omitted vide the Finance Ordinance, 2002 (XX VII of 2002) promulgated on 15th June, 2002
727 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
728 clause (ca) was inserted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
729 substituted for full stop vide Finance Act, 1994 (XII Of 1994)
730 The word “and” was inserted vide the Finance Act, 1997 (XXII of 1997)
731 Clause (1) was added vide the Finance Act, 1997 (XXII of 1997). Earlier identical clause (I) was omitted vide the
Finance, Act, 1996 (IX of 1996). Clause (1) at the time of omission was as under:--
46-i
[(1) may recover such amount by attachment and sale of any movable and immovable property of the guarantor,
person, company, bank or financial institution, where a guarantor or any other person, company bank. or
financial institution fails to make payment under such guarantee, bond or institution
[48-i Clause (f) was added vide Finance Act, 1994 (XII of 1994)]
732 The word “may” was omitted vide the Finance Act, 2007 (IV of 2007), assented on 30th June 2007
733 Substituted for full stop vide the Finance Act, 2017 assented on 19th June, 2017

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 734
[Provided that the Commissioner Inland Revenue or any officer of Inland
Revenue shall not issue notice under this section or the rules made thereunder for
recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under
section 45B 735[or, as the case may be, section 46] in respect of the order under which the
tax sought to be recovered has become payable and the appeal has not been decided by
the Commissioner (Appeals), subject to the condition that 736[ten] per cent of the amount
of tax due has been paid by the taxpayer.]
737
[(1A) If any arrears of tax, default surcharge, penalty or any other amount 'which is adjudged
or payable by any person and which cannot he recovered in the manner prescribed above, the Board or
any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the
Board.]
(2) For the purpose of recovery of tax, penalty or any other' demand raised under this .Act,
the officer of 738[Inland Revenue] shall have the same powers which under the Code of Civil Procedure,
1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree.
739
[(3) The provision of sub-sections (1) and (2) shall mutatis mutandis apply regarding
assistance in collection and recovery of taxes in pursuance of a request from a foreign jurisdiction under a
tax treaty, bilateral or a multilateral convention, and inter-governmental agreement or similar agreement
or mechanism.]

CHAPTER-X
MISCELLANEOUS
740
[49. Sale of taxable activity or transfer of ownership.-(1) In case of termination of taxable activity or
part thereof or its sale of transfer of ownership to a non-registered person, the possession of taxable goods
or part thereof by the registered person shall be deemed to be a taxable supply and the registered person
shall be required to account for and pay the tax on the taxable goods held by him:
Provided that if the tax payable by such registered person remains unpaid, the amount of unpaid
tax shall be the first charge on the assets of the business and shall be payable by the transferee of
business.
741
[(2) In the case of sale or transfer of ownership of a taxable activity or part thereof to another
registered person as an ongoing concern, the taxable goods or part thereof shall be transferred to the new

734 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
735 Inserted vide the Tax Laws (Amendment) Act, 2024 (Act No. V of 2024) dated 9th May, 2024.
736 Substituted the word “twenty-five” vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
737 Sub-section (lA) was inserted vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
738 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
739 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
740 Section 49 was substituted vide the Finance Act, 1996 (IX of 1996). Section 49 at the time of substitution was as under:-
-
“49 Transfer of ownership.-When the ownership of the business of a registered person is transferred the tax
payable. if any in respect of such business that remains unpaid at the time of such transfer shall be the first
charge on the assets of the business and shall be payable by the transferee.”
741 Sub-section “(2)” was substituted vide the Finance Act, 2016. At the time of substitution Sub-section“(2)”was as
under:--
“(2) In the case of sale or transfer of ownership of a taxable activity or part thereof to another registered person as
an ongoing concern, sales tax chargeable on taxable goods or part thereof shall be accounted for and paid by the
registered person to whom such sale is made or ownership is transferred.”

[116]
owner through a zero-rated invoice and the sales tax chargeable thereon shall be accounted for and paid
by the registered person to whom such taxable activity or part thereof is transferred.]
742
[49A. Liquidators.-(1) Every person (hereinafter referred to as a “liquidator”) who is--
(a) a 1iquidator of a company;
(b) a receiver appointed by a Court or appointed out of Court;
(c) a trustee for a bankrupt; or
(d) a mortgagee in possession;
If shall, within fourteen days of being appointed or taking possession of an asset in Pakistan,
whichever occurs first, give written notice thereof to the 743[Commissioner].
(2) the 744[Commissioner] shall, within three months of being notified under sub-section (1),
notify the liquidator, in writing, of the amount which appears to the 745[Commissioner] to be sufficient to
provide for any sales tax which is or will become payable by the person whose assets are in the
possession of the liquidator.
(3) A liquidator shall not, without leave of the 746[Commissioner], part with any asset -held
as liquidator until the liquidator has been notified under sub-section (2).
(4) A liquidator:--
(a) shall set aside, out of the proceeds of sale of any asset by the liquidator, the
amount notified by the 747[Commissioner] under sub-section (2) or such amount
as is subsequently agreed to by the 748[Commissioner]; and
(b) shall be liable to the extent of the amount set aside for the sales tax liability of the
person who owned the asset.
(5) A liquidator shall be personally liable to the extent of any amount required to be set-
aside under sub-section (4) for the tax referred to in sub-section (2) if, and to the, extent that, the
liquidator fails to comply with the requirements of this section.

742 Section 49A was inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June 2010
743 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 28th February 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October 2009
744 Substituted for the: word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of
2010) promulgated on 28th February 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October 2009
745 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 28th February 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October. 2009
746 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
promulgated on 28th February 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October. 2009
747 Substituted for the: word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of
2010) promulgated on 28th February 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October. 2009
748 Substituted for the: word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of
2010) promulgated on 28th February 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October.2009

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 (6) Where the proceeds of sale of any asset are less than the amount notified by the
749
[Commissioner] under sub-section (2) the application of sub-sections (4) and (5) shall be limited to the
proceeds of sale.
(7) This section shall have effect notwithstanding anything contained in any other law for the
time being in force.]
50. Power, to make rules.-750[(1)] The Board may, by Notification in the official Gazette, make
rules for carrying out the purposes of this Act 751[, including rules for charging fee for processing of
returns, claims and other documents and for preparation of copies thereof].
752
[(2) All rules made under sub-section (1) or any other provisions of this Act, shall be
collected, arranged and published along with general orders and departmental instructions and rulings, if
any, at appropriate intervals and sold to the public at reasonable price 753[or may be placed regularly on
the official website maintained by the Board].]
754
[50A. Computerized system.-(1) The Board may prescribe the use of computerized system for
carrying out the purposes of this Act, including the receipt of applications for registration, returns and
such other declarations or information required to be provided under this Act and the rules made there
under, from such date and for such registered persons or class of persons as the Board may, by
notification in the official Gazette, specify,
(2) The Board may make rules for regulating the conduct and transaction of business in
relation to the submission of returns or other information to the Board by the persons required to transmit
or receive any information through the computerized system, including 755[matters such as grant of'
authorization, suspension and cancellation of authorization and for security of the information transmitted
or received through the computerized system.]
756
[(3) Unless otherwise proved, the information received in the computerized system from or
on behalf of any registered person shall, for all official and legal purposes, be deemed to have been
furnished by and received from such registered person.
(4) The business information gathered through computerized system shall be confidential to
be used only for official and legal purposes and no unauthorized person shall claim for any access to such
information.]
757
[50B. Electronic scrutiny and intimation.-(1) The Board may implement a computerized system for
the purpose of automated scrutiny, analysis and cross-matching of returns and other available data
relating to registered persons and to electronically send intimations to such registered persons about any
issue detected by the system.
(2) The intimation sent by the computerized system under sub-section (1) shall be in the
nature of an advice or advance notice, aimed at allowing the registered person to clarify the issue, rectify
any mistake or take other corrective action before any legal or penal action is initiated.

749 Substituted for the: word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5thJune, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of
2010 promulgated on 28th February 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October, 2009
750 Section 50 renumbered as sub-section (1) vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
751 Words added vide Finance Act, 1994 (XII of 1994)
752 Sub-section (2) was added vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
753 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
754 Section 50A was inserted vide the Finance Act, 2006 (III of 2006), assented on 30th June 2006
755 Substituted the word “their' vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
756 Sub-sections (3) & (4) were added vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007
757 Inserted vide Finance Act, 2014

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 (3) The computerized system shall be so implemented so as to keep record of the issues
detected, intimations sent, responses received and actions taken, and to present such information to the
officer of Inland Revenue and to the Board in the prescribed manner.
(4) The Board may prescribe procedures and specifications for the smooth and efficient
operation of the computerized system.]
51. Bar of suits, prosecution and other legal proceedings.-(1) No suit shall be brought in any Civil
Court to set aside or modify any order passed, any assessment made, any tax levied, any penalty imposed
or collection of any tax made under this Act.
(2) No suit, prosecution or other legal proceeding shall lie against the Federal Government or
against any public servant in respect of any order passed in good faith under this Act.
758
[(3) Notwithstanding anything in any other law for the time being in force, no investigation
or inquiry shall be undertaken or initiated by any governmental agency against any officer or official for
anything done in his official capacity under this Act, rules, instructions or direction made or issued there
under without the prior approval of the Board.]
52. Appearance by authorised representative.-A registered person required to appear before the
Appellate Tribunal or an officer of 759[Inland Revenue] in connection with any proceedings under this
Act may, in writing, authorise any person 760[having such qualifications as may be prescribed] to
represent him or appear on his behalf.
761
[52A. e-intermediaries to be appointed.-(1) Subject to such conditions, limitations and restrictions,
the Board may, by a notification in the official Gazette, appoint a person to electronically file return under
Chapter V and such other documents electronically, as may be prescribed from time to time, on behalf of
a person registered under section 14.
(2) A person registered under section 14 may authorize an e-intermediary to electronically
file return or any other documents, as specified in sub-section (1).
(3) The return or such other documents filed by an e-intermediary on behalf of a registered
person shall be deemed to have been filed by that registered person.
(4) Where this Act requires anything to be done by the registered person and if such thing is
done by an e-intermediary authorized by the registered person under sub-section (2), unless the contrary is
proved, shall be deemed to have been done with the knowledge and consent of such registered person so
that in any proceedings under this Act, the registered person shall be liable as if the thing has been done
by him.
(5) Where an e-intermediary, authorized by a registered person under sub-section (2) to act
on his behalf, knowingly or willfully submits a false or incorrect information or document or declaration
with an intent to avoid payment of tax due or any part thereof or claiming a tax credit or a refund that is
not due to the registered person, such e-intermediary shall be jointly and severally responsible for
recovery of the amount of tax short paid or the amount refunded in excess as a result of such incorrect or
false information or document or declaration, without prejudice to any other action that may be taken
against him under the relevant provisions of the law.

758 Sub-section (3) was added vide the Finance Act 2004 (II of 2004), assented on 30th June, 2004
759 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 20I0), assented on 30th June 2010) effective from
5th June, 2010. Earlier the same amendment 'was made vide the Finance (Amendment) Ordinance, 20I0 (XVI of 20I0)
promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October. 2009
760 The words inserted vide the Sales Tax (Amendment) Ordinance, 2000 (XLII of 2000) made on 5th September, 2000
761 Section 52A was added vide the Finance Act, 2006 (III of 2006), assented on 30th June, 2006

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 (6) The Board may, by notification in the official Gazette, prescribe rules for the conduct
and transaction of business of e-intermediates, including their appointment, suspension and cancellation
of appointment, subject to such conditions as specified therein.]
53. Estate of deceased person.-The tax liability of a deceased registered person under the Act shall
be the first charge on his estate in the hands of his successors.
54. Estate in bankruptcy.-(1) If a registered person is declared bankrupt, the tax liability under this
Act shall pass on to the estate in bankruptcy if it continues to operate the business.
(2) If tax liability is incurred by an estate in bankruptcy, the tax is deemed to be a current
expenditure in the operations of the estate in bankruptcy and shall be paid before the claims preferred by
other creditors are settled
762
[55. Removal of difficulties.-If any difficulty arises in giving effect to the provisions of this Act or
the rules made or notifications issued there under, the Board may through a general order or otherwise,
issue instructions or directions, not inconsistent with the provisions of this Act, for such actions to be
taken by an officer of 763[Inland Revenue] or any other person as it considers necessary or expedient for
the purpose of removing the difficulty.]
764
[56. Service of orders, decisions, etc.-(1) Subject to this Act, any notice, or requisition required to be
served on a resident individual, other than in a representative capacity, for the purposes of this Act shall
be treated as properly served on the individual if.-
(a) personally served on the individual or, in the case of an individual under a legal disability
or a non- resident individual, the representative of the individual;
(b) sent by registered post or courier service to the place specified in clause (b) of sub-
section (2) or to the individual's usual or last known address in Pakistan; 765[***]
(c) served on the individual in the manner prescribed for service of a summons under the
Code of Civil Procedure, 1908 (Act V of 1908)766[; or]
767
[(d) sent electronically through email or to the e-folder maintained for the purpose of e-filing
of sales tax-cum-Federal excise returns by the 768[registered person].]

762 Section 55 was substituted vide the Finance Ordinance, 2001 (XXV of 2001) dated 18th June, 2001. At the time of
substitution Section 55 was as under:-
“55 Removal of difficulties.-If any difficulty arises in giving effect to the provisions of this Act, particularly in
relation to the transition from the enactments repealed by this Act to the provisions of this Act, the Federal Government
may, by a general or special order, made during the period of one year from the commencement of this Act, direct such
action to be taken as it considers necessary or expedient for the purpose of removing the difficulty.”
763 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (III of 20
I 0) promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on
28th October, 2009
764 Section 56 was substituted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th
June, 2010. Earlier Section 56 was substituted vide the Finance (Amendment) Ordinance, 20I0 (III of 20I0)
promulgated on 6th February, 20I0 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009). At the time of substitution Section 56 was as under:--
“56 Service of order decisions, etc.-Any adjudication order or decision made or any summons or notice issued
under this Act shall be served-
(a) by tendering the adjudication order, decision, summons or notice or sending it by registered post 56-
i
[or courier service] to the person for whom it is intended or to his agent; or
(b) if the adjudication order, decision, summons or notice cannot be served in any manner provided in
clause (a) by affixing it on the notice board of the local Sales Tax Office.”
[56-i Words were inserted vide Finance Act, 1998 (III of 1998)]
765 The word ‘or’ was omitted vide the Finance Act, 2017 assented on 19th June, 2017
766 Substituted For the full stop vide the Finance Act, 2017 assented on 19th June, 2017
767 Inserted vide the Finance Act, 2017 assented on 19th June, 2017

[120]
 (2) Subject to this Act, any notice, order or requisition required to be served on any person,
other than a resident individual to whom sub-section (1) applies, for the purposes of this Act, shall be
treated as properly served on the person if-
(a) personally served on the representative of the person;
(b) sent by registered post or courier service to the person's registered office or address for
service of notices under this Act, in Pakistan, or where the person does not have such
office or address, the notice is sent by registered post to any office or place of business of
the person in Pakistan; or for served on the person in the manner prescribed for service of
a summons under the Code of Civil Procedure, 1908 (Act V of 1908).
(c) served on the individual in the manner prescribed for service of a summons under the
Code of Civil Procedure, 1908 (Act V of 1908) 769[; or]
770
[(d) sent electronically through email or to the e-folder maintained for the purpose of e-filing
of sales tax-cum-Federal excise returns by the 771[registered person].]
(3) Where an association of persons is dissolved, any notice, order or requisition required to
be served under this Act, on the association may be served on any person who was the principal officer or
a member of the association immediately before such dissolution.
(4) Where, business stands discontinued, any notice order or requisition required to be served
under this Act on the person discontinuing the business may be served on the person personally or on any
individual who was the person's representative at the time of discontinuance.-
(5) The validity of service of a notice under this Act shall not be called into question after the
notice has been complied with in any manner.]
772
[56A.Agreement for the exchange of information 773[or assistance in recovery of taxes].-(1) The
Federal Government may enter into bilateral or multilateral agreements with provincial governments or
with governments of foreign countries for the exchange of information, including electronic exchange of
information, with respect to sales tax imposed under this Act or any other law of Pakistan and under the
corresponding laws of such countries and may, by notification in the official Gazette, make such
provisions as may be necessary for implementing such agreements.
774 775
[ [(1A) Notwithstanding anything contained in this Act, the Board shall have power to share
data or information including real time data videos, images received under the provisions of this Act with
any other Ministry or Division of the Federal Government or Provincial Government, subject to such
limitations and conditions an may be specified by the Board.]]
(2) The provisions of section 107 of the Income Tax Ordinance, 2001 (XLIX of 2001) shall,
mutatis mutandis, apply to the provisions of this section.
776
[(3) The Federal Government may enter into bilateral or multilateral convention, and inter-
governmental agreement or similar agreement or mechanism for assistance in the recovery of taxes.]

768 Substituted the words “limited companies both public and private” vide the Finance Act, 2020 (XIX of 2020) assented
on 30th June, 2020.
769 Substituted For the full stop vide the Finance Act, 2017 assented on 19th June, 2017
770 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
771 Substituted the words “limited companies both public and private” vide the Finance Act, 2020 (XIX of 2020) assented
on 30th June, 2020
772 Inserted vide Finance Act, 2015
773 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
774 Inserted vide Tax Laws (Amendment) Ordinance, 2021, dated 12th February, 2021.
775 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
776 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021

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777
[56AB. Real-time access to information and databases.-(1) Notwithstanding anything contained in
any law for the time being in force, including but not limited to the National Database and Registration
Authority Ordinance, 2000 (Ordinance VIII of 2000), and the Emigration Ordinance, 1979 (Ordinance
XVIII of 1979), arrangements shall be made to provide real-time access of information and database to
the Board in the prescribed form and manner by–
(a) the National Database and Registration Authority with respect to information pertaining
to National Identity Card (NIC), Pakistan Origin Card, Overseas Identity Card, Alien
Registration Card, and other particulars contained in the Citizen Database;
(b) the Federal Investigation Agency and the Bureau of Emigration and Overseas
Employment with respect to details of international travel;
(c) the Islamabad Capital Territory and Provincial and local land record and development
authorities with respect to record-of-rights including digitized edition of record-of-rights,
periodic record, record of mutations and report of acquisition of rights;
(d) the Islamabad Capital Territory and Provincial Excise and Taxation Departments with
respect to information regarding registration of vehicles, transfer of ownership and other
associated record;
(e) all electricity suppliers and gas transmission and distribution companies with respect to
particulars of a consumer, the units consumed and the amount of bill charged or paid:
Provided that where the connection is shared or is used by a person other than the owner,
the name and NIC of the owner and the user shall also be furnished:
Provided further that all electricity suppliers and gas transmission and distribution
companies shall make arrangements by the 1st day of January, 2021 for allowing consumers to
update the ratio of sharing of a connection or the particulars of users, as the case may be; and
(f) any other agency, authority, institution or organization, notified by the Board.
(2) The Board shall make arrangements for laying the infrastructure for real-time access to
information and database under sub-section (1) and aligning it with its own database in the manner as
may be prescribed.
(3) Until real-time access to information and database is made available under sub-section
(1), such information and data shall be provided periodically in such form and manner as may be
prescribed.
(4) Subject to section 56B, all information received under this section shall be used only for
tax purposes and kept confidential.]
778
[56B. Disclosure of information by a public servant.- (1) Any information acquired under any
provision of this Act shall be confidential and no public servant 779[, expert or auditors appointed under
section 32B] shall disclose any such information, except as provided under section 216 of the Income Tax
Ordinance, 2001 (XLIX of 2001).
(2) Notwithstanding anything contained in sub-section (1) and the Freedom of Information
Ordinance, 2002 (XCVI of 2002), any information received or supplied in pursuance of bilateral or
multilateral agreements with government of foreign countries for exchange of information under section
56A shall be confidential.]

777 New section 56AB inserted by Finance Act, 2020.

778 Section 56B substituted through Finance Act, 2016.
779 Inserted vide Finance Act, 2025 dated 29th June, 2005

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56C. Prize schemes to promote tax culture.- 780[(1)] The Board may prescribe prize schemes to
encourage general public to make purchases only from registered persons issuing tax invoices.]
781
[(2) The Board may prescribe procedure for “mystery shopping” in respect of invoices issued
by tier-1 retailers integrated with FBR online system randomly and in case of any discrepancy, all the
relevant provisions of this Act shall apply accordingly.]
782
[57. Rectification of mistake.-(1) The officer of Inland revenue, Commissioner, the Commissioner
(Appeals) or the Appellate Tribunal may, by an order in writing, amend any order passed by him to
rectify any mistake apparent from the record on his or its own motion or any mistake brought to his or its
notice by a taxpayer or, in the case of the Commissioner (Appeals) or the Appellate Tribunal, the
Commissioner.
(2) No order under sub-section (1) which has the effect of increasing an assessment, reducing
a refund or otherwise applying adversely to the taxpayer shall be made unless the taxpayer has been given
a reasonable Opportunity of being heard.
(3) Where a mistake apparent on the record is brought to the notice of the officer of Inland
Revenue, Commissioner or Commissioner (Appeals), as the case may be, and no order has been made
under subsection (1), before the expiration of the financial year next following the dare on which the
mistake was brought to their notice, the mistake shall be treated as rectified and all the provisions of this
Act shall have effect accordingly.
(4) No order under sub-section (1) shall be made after five years from the date of the order
sought to be rectified.]
783
[58. Liability for payment of tax in case of private companies or business enterprises.-(1)
Notwithstanding anything contained in the Companies Act, 2017 (XIX of 2017), where any private
company or business enterprise is wound up and any tax chargeable on the company or business
enterprise, whether before, or in the course, or after its liquidation, in respect of any tax period cannot be
recovered from the company or business enterprise, every person who was an owner of, or partner in, or
director of, or a shareholder, owning not less than ten per cent of the paid-up capital, in the company or
business enterprise, as the case may be, during the relevant period shall jointly and severally with such
persons, be liable for the payment of such tax.

780 Renumbered vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
781 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
782 Substituted for section 57 vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013. At the time of
substitution section 57 was as under:--
“57 Correction of clerical errors, etc.-Clerical or arithmetical errors in any assessment, adjudication, order or
decision may, at any time, be corrected by the officer of 57-i[Inland Revenue] who made the assessment or adjudication
or passed such order or decision or by his successor in office 57-ii[:]”
57-iii
[Provided that before such correction, a notice shall be given to the registered person or to a person
effected by such correction.]
[57-i Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on30th June, 2010
effective from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment)
Ordinance, 2010 (III of 2010) promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance,
2009 (XX II of 2009) promulgated on 28th October, 2009
[57-ii Substituted for full stop vide the Finance Act, 1996 (IX of 1996)
[57-iii Proviso was added vide the Finance Act, 1996 (IX of 1996)
783 Section 58 was substituted vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of substitution
Section 58 was as under:-
“58. Liability for payment of tax in the case of private companies or business enterprises--Not withstanding
anything contained in the Companies Act, 2017 (XIX of 2017) where any private company or business enterprise is
wound up and any tax chargeable on the company or business enterprise, whether before, or in the course of, or after its
liquidation, in respect of any tax period cannot be recovered from the company or business enterprise, every person
who was a owner of, or partner in, or director of the company or business enterprise during the relevant period shall,
jointly and severally with such persons, be liable for the payment of such tax.

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 (2) Any director or partner who pays tax under sub-section (1) shall be entitled to recover the
tax paid from the company or a share of the tax from any other director or partner, as the case may be.
(3) A shareholder who pays tax under sub-section (1) shall be entitled to recover the tax paid
from the company or from any other shareholder, owning not less than ten percent of the paid up capital,
in proportion to the shares owned by that other shareholder.
(4) The provisions of this Act shall apply to any amount due under this section as if it were
tax due under an order for assessment made under this Act.]
784
[58A. Representatives.-(1) For the purpose of this Act and subject to sub-sections (2) and (3), the
expression “representative” in respect of a registered person, means--
(a) where the person is an individual under a legal disability, the guardian or manager who
receives or is entitled to receive income on behalf, or for the benefit of the individual;
(b) where the person is a company (other than a trust, a Provincial Government, or local
authority in Pakistan), a director or a manager or secretary or agent or accountant or any
similar officer of the company;
(c) where the person IS a trust declared by a duly executed instrument in writing whether
testamentary or otherwise, any trustee of the trust;
(d) where the person is a Provincial Government, or local authority in Pakistan, any
individual responsible for accounting for the receipt and payment of money or funds on
behalf of tire Provincial Government or local authority;
(e) where the person is an association of persons, a director or a manager of secretary or
agent or accountant or any similar officer of the association or, in the case of a firm, any
partner in the firm;
(f) where the person is the Federal Government, any individual responsible for accounting
for the receipt and payment of moneys or funds on behalf of the Federal Government; or
(g) where the person is a public international organization, or a foreign government or
political sub-division of a foreign government, any individual responsible for accounting
for the receipt and payment of moneys or funds in Pakistan on behalf of the organization,
government, or political sub-division of the government.
(2) Where the Court of Wards, the Administrator General, the Official Trustee, or any
receiver or manager appointed by, or under, any order of a Court receives or is entitled to receive income
on behalf, or for the benefit of any person, such Court of Wards, Administrator General, Official Trustee,
receiver, or manager shall be the representative of the person for the purposes of this Act.
785
(3) [subject to sub-section (4), where a person is a non-resident person, the representative
of the said person for the purpose of this Act, fora financial year in which the relevant tax period falls,
shall be any person in Pakistan]:--
(a) who is employed by, or on behalf of, the non- resident person;
(b) who has any business connection with the non- resident person;
(c) from or through whom the non-resident person is in receipt of any income, whether
directly or indirectly;

784 Section 58A was inserted vide the Finance Act, 2008 (I of 2008), assented on 2th June, 2008
785 Substituted the words “subject to sub-section (4), where a person is a non-resident person, the representative of the
persons for the purpose of this Act for a tax year shall be any person in Pakistan” vide the Finance Act, 2020 (XIX of
2020) assented on 30th June, 2020.

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 (d) who holds, or controls the receipt or disposal of any money belonging to the non-resident
person;
(e) who is the trustee of the non-resident person; or
(f) who is declared by the 786[Commissioner] by an order in writing to be the representative
of the non- resident person.
787
[Explanation.-For the purposes of this sub-section, non-resident person shall have the
same meaning assigned thereto under the Income Tax Ordinance 2001 (XLIX of 2001).]
(4) No person shall be declared as the representative of a non-resident person unless the
person has been given an opportunity by the 788[Commissioner] of being heard.]
789
[58B. Liability and obligations of representatives.-(1) Every representative of a person shall be
responsible for performing any duties or obligations imposed by or under this Act on the person,
including the payment of tax.
(2) Subject to section 58 and sub-section (5) of this section, any tax that, by virtue of sub-
section (1), is payable by a representative of a registered person shall be recoverable from the
representative only to the extent of any assets of the registered person that are in the possession or under
the control of the representative.
(3) Every representative of a registered person who pays any tax owing by the registered
person shall be entitled to recover the amount so paid from the registered person or to retain the amount
so paid out of any moneys of the registered person that are in the representative's possession or under the
representative’s control.
( 4) Any representative, or any person who apprehends that he may be assessed as a
representative, may retain out of any money payable by him to the person on whose behalf he is liable to
pay tax (hereinafter in this section referred to as the “principal”), a sum equal to his estimated liability
under this Act, and in the event of disagreement between the principal and such a representative or a
person as to the amount to be so retained, such representative or person may obtain from the
790
[Commissioner] a certificate stating the amount to be so retained pending final determination of the tax
liability, and the certificate so obtained shall be his authority for retaining that amount.
(5) Every representative shall be personally liable for the payment of any tax due by the
representative in a representative capacity if, while the amount remains unpaid, the representative-
(a) alienates, charges or disposes of any moneys received or accrued in respect of
which the tax is payable; or
(b) disposes of or parts with any moneys or funds belonging to the registered person
that is in the possession of the representative or which comes to the

786 Substituted the word “Collector” vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (III of 20I0)
promulgated on 6th February, 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2069) promulgated on 28th
October, 2009
787 Added vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
788 Substituted the word “Collector” vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (III of 20I0)
promulgated on 6th February, 20I0 & the Finance (Amendment) Ordinance, 2009 (XXII of 2069) promulgated on 28th
October, 2009
789 Section 58B was inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
790 Substituted the word “Collector” vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 20I0 (III of 20I0)
promulgated on 6th February, 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009

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 representative after the tax is payable, if such tax could legally have been paid
from or out of such moneys or funds.
(6) Nothing in this section shall relieve any person from performing any duties imposed by
or under this Act on the person which the representative of the person has failed to perform.]
791
[58C. Inspection of audit firm.-Where in case of a registered person, whose accounts are subject to
audit under the Companies Act, 2017 (XIX of 2017), Chief Commissioner Inland Revenue has reason to
believe that the audited accounts do not reflect the true and fair view of sales and purchases and related
sales tax liability, he or she may with the approval of the Board, refer the audit firm, who has issued audit
certificate to that registered person, for inspection to Audit Oversight Board.]
792
[59. Tax paid on stocks acquired before registration.-The tax 793[***] paid on goods purchased by a
person who subsequently required to be registered under section 14 due to new liabilities or levies its
voluntary registration under 794[this Act or the rules made there under], shall be treated as input tax,
provide that such goods were purchased by him from a registered person against an invoice issued under
section 23 during a period of thirty days before making an application for registration and constitution his
verifiable unsold stock on the date of compulsory registration or on the date of application for registration
or for voluntary registration:
Provided that where a person imports goods, the tax paid by him thereon during a period of ninety
days before making application for registration shall be treated as an input tax subject to the condition that
he holds the bin of entry relating to sue goods and also that these are verifiable unsold or un-consume
stocks on the date of compulsory registration or on the date c application for registration or for voluntary
registration.]
795
[60. Powers to deliver certain goods without payment of tax.-Subject to such conditions,
limitations or restrictions as it thinks fit to impose, the 796[ 797[ Federal Government]]

791 Inserted vide Finance Act, 2025 dated 29th June, 2005
792 Section 59 was inserted vide the Finance Act, 1999 (IV of 1999), assented on 29th June 1999. Earlier Section 59 was
omitted vide the Finance Act, 1997 (XXII of'1997). At the time of commission section 59 was as under:--
59-i
[59 Tax paid on stocks acquired before registration.-The tax. other than fixed tax or turnover tax, paid on goods
purchased by a person who is subsequently required to be registered under section 14 shall be treated as
input tax provided that such goods were purchased by him from a registered person against an invoice issued
under section 23 during a period of thirty days before making an application for registration under section
15:
Provided that where a manufacturer imports goods the tax paid him thereon during a period of
ninety days before making an application registration shall be treated as an input tax subject to the condition
he hold the bill of entry relating to such goods.]”
[59-i Section 59 was substituted vide the Finance Act, 1996 (IX of 1996). Section 59 at the time of substitution was
as under—
“59 Tax paid on stock acquired before registration.-Tax paid under provisions of Sales Tax Act, 1951 (III of
1951) on the imported or locally produced goods, which a person acquires before he is registered under Act,
and which is liable to adjustment or refund under Section 27 of the Act, shall be treated as input tax for the
purposes of this Act.”
793 The commas and words “, other than the turnover tax,” were omitted vide the Finance Act, 2004 (II of 2004), assented
on 30th June, 2004
794 Substituted the word and figure “section 18” vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
795 Section 60 substituted vide the Finance Act, 1998 (III of 1998). At the time of substitution Section 60 was as under:--
“60 Power to deliver certain goods without payment of tax.-Subject to such conditions limitations or restrictions
as it thinks fit to impose, the Board may authorise the delivery without payment of the whole or any part of
the tax payable thereon of goods which are imported only temporarily with a view to subsequent
exportation.”
796 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
797 Substituted the word “Board with the approval of the Federal Minister-in-charge” vide Finance Act, 2018, (XXX of
2018) assented on 22nd May, 2018

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may authorise the 798[import] of goods or a class of goods, without payment of the whole or any part of
the tax payable thereon to the following persons namely:--
(i) registered importers importing such goods temporarily with a view to subsequent
exportation;
799
[(ii) registered manufacturer-cum-exporters who import raw materials and intermediary
products for further manufacture of goods meant for export;]
800
[***]
61. Repayment of tax in certain cases.-Subject to such conditions, limitations or restrictions as it
thinks fit to impose. the Board may authorise the repayment in whole or in part of the tax paid on 801[***]
any goods of such class or description as it may determine, which have been used in the production
manufacture, processing, repair or refitting in Pakistan of goods of such class or description as it may
determine.
802
[61A. Repayment of tax to persons registered in Azad Jammu and Kashmir.-Subject to such
conditions, limitations restrictions as it may deem fit to impose, the Board may authorize the repayment
in whole or in part of the input tax paid on all goods acquired in or imported into Pakistan by the person
registered in Azad Jammu and Kashmir as are engaged in making of zero-rated supplies.]
62. Draw back allowable on re-export.-When any goods which have been imported into Pakistan
and on which tax has been paid on importation are re-exported outside Pakistan and such goods as are
capable of being identified, seven-eighth of such tax shall, except. as otherwise hereinafter provided, be
repaid as drawback, and the provisions of Customs Act, 1969 (IV of 1969), relating to drawback of
customs duties shall, so far as may be apply to such tax, as they apply for the purposes of that Act:
Provided that no such drawback shall be repaid unless the re-export is made within a period of
two years from the date of importation as shown in the records of the Custom House:
Provided further that the Board may, on sufficient cause being shown, in any case extend the said
period by a further period of one year
63. Drawback on goods taken into use between importation and re-exportation.-
Notwithstanding anything contained Section 62, the repayment of sales tax as drawback in respect goods
which have been taken into use between importation and re exportation shall be subject to such orders,
conditions limitations as may be passed or imposed by the Board' in each case.-
(a) modifying the amount of tax which shall be repaid as drawback on any such goods or
class of goods; a
(b) prohibiting the repayment of tax as drawback any such goods or class of such goods; or
(c) varying the condition for the grant of drawback any such goods or class of such goods by
restricting the period after importation within which the good , must be, re-exported.

798 Substituted the word “delivery” vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999)
799 The clause (ii) was substituted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999. At the time of
substitution clause (ii) was as under:-
“(ii) registered manufacturer-cum-exporters obtaining raw materials and intermediary products from registered
persons for further manufacture of goods meant for export: and”
800 Clause (iii) was omitted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999. At the time of omission
Clause (iii) was as under:-
“(iii) registered commercial exporters for subsequent exportation”
801 The words “the importation of' was omitted vide the Finance Ordinance, 2002 (XXVII 2002) promulgated on 15th
June, 2002
802 Section 61A was inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June 2008

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64. Power to declare what goods are identifiable and prohibit drawback in case of specified
foreign territory.-The Federal Government may, from time to time, by Notification in the official
Gazette, prohibit the payment of drawback upon the exportation of goods or any specified goods or class
of goods any specified foreign port or territory.
65. Exemption of tax not levied or short levied as a result general practice.-Notwithstanding
anything contained in this Act if in respect of any supply the 803[ 804[ Federal Government]] is satisfied
that inadvertently and as a general practice:--
(a) tax has not been charged in any area on any supply which was otherwise taxable, or
according to the said practice the amount charged was less than the amount that should
have actually been charged;
(b) the registered person did not recover any tax prior to the date it was discovered that the
supply was liable to tax; and
(c) the registered person started paying the tax from the date when it was found that' the
supply was chargeable to tax.
It may, by a Notification in the official Gazette, direct that the tax not levied or short
levied as a result of that inadvertent practice, shall not be required to be paid for the period prior
to the discovery of such inadvertent practice.
66. Refund to be claimed within one year.-No refund of tax claimed to have been paid or over paid
through inadvertence, error or misconception 805[ or refund on account of input adjustment not claimed
within the relevant tax period,] shall be allowed, unless the claim is made within one year of the date of
payment 806[:]
807
[Provided that in a case where a registered person did not deduct input tax within the relevant
tax period, the 808[Commissioner] may, after satisfying himself that input tax adjustment is due and
admissible, allow the registered person to take such adjustment in the tax period as specified by the 809[
Commissioner]:]
810
[Provided 811[further] that in a case where the refund has become due on account of any
decision or judgment of any officer of 812[Inland Revenue] or court or the Tribunal, the period of one
year shall be reckoned from the date of judgment or decision of such officer, court or Tribunal 813[:]]

803 Substituted for the word “Federal Government” vide the Finance Act, 2017 assented on 19th June, 2017
804 Substituted the word “Board with the approval of the Federal Minister-in-charge” vide Finance Act, 2018, (XXX of
2018) assented on 22nd May, 2018
805 The words and comma were inserted vide Finance Act, 1998 (III of 1998)
806 Substituted for the full stop vide the Finance Ordinance, 2001 (XXV of 2001) made on 18th June, 2001
807 Proviso was inserted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on I5th June, 2002
808 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of 2010),
promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
809 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010)
Promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th
October, 2009
810 Proviso was added vide the Finance Ordinance, 2001 (XXV of 2001) dated 18th June 2001
811 The word was inserted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on I5th June, 2002
812 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI-of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made by the Finance (Amendment) Ordinance, 2010 (III of
2010) promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October, 2009
813 Substituted for the full stop vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005

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 814
[Provided further that the application or claim filed under this section shall be disposed of
within a period not exceeding ninety days from the date of filing of such application or claim 815[:]]
816
[Provided also that no refund shall be admissible under this section if incidence of tax has been
passed directly or indirectly to the consumer]
817
[67. Delayed refund.-Where a refund due under section 10 is not made within 818[the time specified
819
[in this behalf]], there shall be paid to the claimant in addition to the amount of refund due to him, a
further sum equal to 820[KIBOR] per annum of the amount of refund due, from the date following the
expiry of 821[the time specified 822[as aforesaid,]] to the day preceding the date of payment of refund:
Provided that where there is reason to believe that a person has claimed the refund which is not
admissible to him, the provisions regarding the payment of such additional amount shall not apply till the
investigation of the claim is completed and the claim is either accepted or rejected 823[:]]
824
[Provided further that where a refund due in the consequence of any order passed under section
66 is not made within forty five days of date of such order, there shall be paid to the claimant in addition
to the amount of the refund due to him, a further sum equal to KIBOR per annum of the amount of
refund, due from the date of the refund order.]
825
[67A. Payment of refund through sales tax refund bonds.-(1) Notwithstanding anything contained
in section 67, the sales tax refunds payable under this Act may also be paid through sales tax refund bonds
to be issued by FBR Refund Settlement Company 826[***] Limited, in book-entry form through an
establishment licensed by the Securities and Exchange Commission of Pakistan as a central depository
under the Securities Act, 2015 (III of 2015), in lieu of payment to be made through issuance of cheques or
bank debit advice.

814 Proviso was added vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
815 Substituted for the full stop vide the Finance Act, 20II (XVI of 20II), assented on 29th June, 2011
816 Proviso was added vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011
817 Section 67 was substituted vide the Finance Act, 1996 (!X of 1996) Section 67 at the time of substitution was as under:-
“67 Delayed Refund.-Where a refund due under Sections 10, 61 and 66 is not made within one hundred eighty
days of receipt of a claim complete in all respects, there shall be paid to the claimant, in addition to the
amount of refund due to him, a further sum equal to 10% per annum of the amount of refund due, from the
date following the expiry of one hundred eighty days to the day preceding the date of payment of refund. “
818 Substituted the words “thirty days” vide the Finance Act, 1997 (XXII of 1997)
819 Substituted the words and comma 67-i[as aforesaid,] of filing of 67-ii[refund claim)” vide the Finance Act, 2008 (I of
2008), assented on 26th June, 2008
[67-i Substituted the words and figure “in section 10 from the date” by the Finance Act, 2007 (IV of 2007)
assented on 30th June, 2007) [Note: In Section 67, the words and figure “in section 10 from the date”, were
appearing twice. Finance Act, 2007 was silent where it was made. Anyhow, it was placed on both places]
[67-ii Substituted the word “return” vide the Finance Act, 2007 (IV of 2007), assented on 30th June, 2007]
820 Substituted the words 67-iii[six per cent] vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009)
[67-iii Substituted the word 67-iiia[fourteen] vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[67-iiia Substituted the word “ten” vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997). Earlier the
same amendment was made by the by the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of 1996),
effective from 2nd November, 1996; and again by the Sales Tax (Amendment) Ordinance, 1997 (XXXIX of
1997)
821 Substituted the words “thirty days” vide the Finance Act, 1997 (XXII of 1997)
822 Substituted the words and figure “in section 10 from the date” vide the Finance Act, 2007 (IV of 2007), assented on
30th June, 2007). [Note: In Section 67, the words and figure “in section 10 from the date”, were appearing twice.
Finance Act, 2007 was silent where it was made. Anyhow, it was placed on both places]
823 Substituted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
824 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
825 Inserted vide Finance Supplementary (Second Amendment) Act, 2019 (III of 2019) assented on 9th March, 2019
826 Omitted the word “(Private)” vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019

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 (2) The Board shall issue a promissory note to FBR Refund Settlement Company 827[***]
Limited, hereinafter referred to as the company, incorporating the details of refund claimants and the
amount of refund determined as payable to each for issuance of sales tax refund bonds, hereinafter
referred to as the bonds, of the same amount.
(3) The bonds shall be issued in values in multiples of one hundred thousand Rupees.
(4) The bonds so issued shall have a maturity period of three years and shall bear annual
simple profit at ten per cent.
(5) The bonds shall be traded freely in the country's secondary markets.
(6) The bonds shall be approved security for calculating the statutory liquidity reserve.
(7) The bonds shall be accepted by the banks as collateral.
(8) There shall be no compulsory deduction of Zqkat against the bonds and Sahib-e-Nisab
may pay Zakat voluntary according to Shariah.
(9) After period of maturity, the company shall return the promissory note to the Board and
the Board shall make the payment of amount due under the bonds, along with profit due, to the bond
holders.
(10) The bonds shall be redeemable in the manner as in the preceding sub-section before
maturity only at the option of the Board along with simple profit payable at the time of redemption in the
light of general or specific policy to be formulated by the Board.
(11) The refund under sub-section (1) shall be paid in the aforesaid manner to the claimants
who opt for payment in such manner.
(12) The 828[Board, with the approval of the Federal Minister-in-charge,] may notify
procedure to regulate the issuance, redemption and other matters relating to the bonds, as may be
required.]
68. Liability of the registered person for the ads of his agent.-When any person is expressly or
impliedly authorised by a registered person to be his agent for all or any of the purposes of this Act, the
registered person shall be responsible for the act done by his agent.
829
[69. Issuance of duplicate of sales tax documents.-An officer of an 830[Inland Revenue not below the
rank of Assistant Commissioner] may, on payment of one hundred rupees, issue an attested duplicate of
any sales tax document as is available with the department or has been filed under this Act or rules made.
There under to a relevant registered person applying for the same.]
70. Computation of limitation period.-In computing the period of limitation prescribed for any
appeal or application under this Act, the day on which the order complained of was served and, if the
concerned person was not furnished with a copy of the order the time requisite for obtaining a copy of
such order shall be excluded.

827 Omitted the word “(Private)” vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019
828 Substituted for words “Federal Government” vide the Finance Act, 2019 (V of 2019), assented on 30th June, 2019
829 Section 69 was substituted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008). At the time of
substitution Section 69 was as under:--
“69 Issuance of certificate & duplicate of Sales Tax documents.-A certificate or a duplicate of any-certificate,
tax invoice, monthly return or other sales tax documents may, on payment of a fee of ten rupees, be furnished
to the registered person applying for the same.”
830 Substituted the words “Sales Tax not below the rank of Assistant Collector” vide the Finance Act, 2010 (XVI of 2010),
assented on 30th June, 2010 effective from 5th June, 2010. Earlier the same amendment was made by the Finance
(Amendment) Ordinance, 2010 (III of 2010) promulgated on 6th February 2010) & the Finance (Amendment)
Ordinance, 2009 (XXII of 2009) promulgated on 28th October, 2009

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831
[71. Special procedure.-832[(1)] 833[The Board] may, by notification in the official Gazette, prescribe
special procedure for scope and payment of tax, registration, book keeping and invoicing requirements
and returns, etc; in respect of such supplies as may be specified therein.]
834
[* * *]
835
[(3) Notwithstanding anything contained in this Act or any other law for the time being in force
or any decision of any court the trade enrolment Certificate schemes immediately in force before the
commencement of the Finance Act, 1999, shall be deemed to be validly made under this Act.]
836
[72. 837[Officers of sales tax] to follow Board's orders, etc.-All officers of 838[Inland Revenue] and
other persons employed in the execution of this Act shall observe and follow the orders, instructions and
directions of the Board:
Provided that' no such orders, instructions or directions shall be given so as to interfere with the
discretion of 839[ officers of sales tax] in the exercise of their quasi-judicial functions.]
840
[72A. Reference to authorities.-Any reference to Collector, Additional Collector, Deputy Collector,
Assistant Collector, Superintendent, Senior Auditor and an Officer of Sales Tax, wherever occurring, in
this Act and the rules, notifications, clarifications, general orders or orders made or issued there under,
shall be construed as reference to Commissioner Inland Revenue, Additional Commissioner Inland
Revenue, Deputy Commissioner Inland Revenue, Assistant Commissioner Inland Revenue,
Superintendent Inland Revenue, Inland Revenue Audit Officer and an officer of lnland Revenue,
respectively.]
841
[72B. Selection for audit by the Board.-(1) The Board may select persons or classes of persons for
audit of tax affairs through computer ballot which may be random or parametric as the Board may deem
fit.
842
[(1A) Notwithstanding anything contained in this Act or any other law, for the time being in
force, the Board shall keep the selection parameters confidential.]

831 Section 71 was added vide the Finance supplementary (Amendment) Act, 1997 (IV of 1997) Earlier the same
amendment was made by the by the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of 1996), effective from 2nd
November, 1996; and again vide the Sales Ta (Amendment) Ordinance, 1997 (XXXIX of 1997)
832 Section 71 re-numbered as sub-section (I) vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
833 Substituted for words “Notwithstanding anything contained in this Act, the Federal Government” vide Finance Act,
2019 (V of 2019), assented on 30th June, 2019
834 Sub-section (2) was omitted vide the Sales Tax (Amendment) Ordinance, 1999 (XII of 1999) promulgated on 13th
August, 1999.At the time of omission sub-section (2) was as under:--
71-i
[(2) The Board may allow a manufacturer or producer or a retailer, liable to turnover tax under section 3A to pay
any amount on any basis for any period asit may, by notification in the official Gazette, specify,]
[71-i Sub-section (2) was added vide the Sales Tax (Amendment) Ordinance, 1999 (XII of 1999), assented on
29th June,1999
835 Sub-section (3) was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999
836 Section 72 was added vide Finance Act, 1998 (III of 1998)
837 Any reference to “Officer of Sales Tax” shall be construed as reference to an “officer of Inland Revenue” by virtue of
Section 72A of the Sales Tax Act, 1990.
838 Substituted the words “Sales Tax” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective
from 5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of
2010) promulgated on 6th February, 2010) & the Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated
on 28th October, 2009
839 Any reference to “Officer of Sales Tax” shall be construed as reference to an “officer of Inland Revenue” by virtue of
Section 72A of the Sales Tax Act, 1990.
840 Section 72A was inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010). Earlier Section 72A
was inserted vide the Finance (Amendment) Ordinance, 2010 (III of 2010) promulgated on 6th February, 2010) & the
Finance (Amendment) Ordinance, 2009 (XXII of 2009) promulgated on 28th October, 2009
841 Section 72B was inserted vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 2010 effective from 5th
June, 2010

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 (2) Audit of tax affairs of persons selected under sub-section (1) shall be conducted as per
procedure given in section 25 and all the provisions of this Act shall apply accordingly.
(3) For the removal of doubt it is hereby declared that the Board shall be deemed always to
have had the power to select any persons or classes of persons for audit of tax affairs under this section.]
843
[72C. Reward to Inland Revenue officers and officials.-(1) In cases involving concealment or
evasion of sales tax and other taxes, cash reward shall be sanctioned to the officers and officials of Inland
Revenue for their meritorious conduct in such cases and to the informer providing credible information
leading to such detection, as may be prescribed by the Board, only afar realization of part or whole of the
taxes involved in such eases.
(2) The Board may, by notification in the official Gazette, prescribe the procedure in this
behalf and specify the apportionment of reward sanctioned under this section for individual performance
or to collective welfare of the officers and officials of Inland Revenue.]
844
[72D. Reward to whistleblowers.-(1) The Board may sanction reward to whistleblowers in cases of
concealment or evasion of tax, tax fraud, corruption or misconduct providing credible information leading
to such detection of tax fraud.
(2) The Board may, by notification in the official Gazette, in this behalf and also specify the
apportionment of reward sanctioned under this section for whistleblowers.
(3) The claim for reward by the whistleblower shall be rejected if-
(a) the information provided is of no value;
(b) the Board already had the information;
(c) the information was available in public records; or
(d) no collection of taxes is made from the information provided from which the
Board can pay the reward.
(4) For the purpose of this section, whistleblower means a person who reports concealment
or evasion of sales tax and tax fraud leading to competent authority having power to take action against
the person or a sales tax authority committing fraud corruption, misconduct or involved in concealment or
evasion of taxes.]
845
[73. Certain transactions not admissible.-(1) Notwithstanding anything contained in this Act or any
other law for the time being in force, payment of the amount for a transaction exceeding value of fifty

842 Inserted vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019
843 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
844 Inserted vide Finance Act, 2015
845 Section 73 was substituted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004). At the time of
substitution Section 73 was as under:-
“73 Curtain transactions not admissible.-Notwithstanding anything contained in this Act or any other law for the
time being in force, payment of the amount of sales tax excluding utility bills for a transaction exceeding
value of twenty- five thousand rupees shall be made by a banking instrument showing transfer of the amount
of sales tax in favour of supplier or the Collector of Sales Tax, as the case may be, from the specified bank
account of the buyer to the specified bank account of the supplier or to the specified sales tax head of
account, as the case may be. The buyer and seller shall not be entitled to claim input tax credit, adjustment or
deduction, or refund, repayment or draw-back or zero-rating of tax under this Act if the payment of the
amount of sales tax is made or received otherwise than in the manner here in prescribed.]”
Earlier, the Section 73 was substituted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003). At the time
of substitution Section 73 was as under:-
73-i
[73 Certain transactions not admissible.-Notwithstanding anything contained in this Act or any other
law for the time being in force, any transaction 73-ii[excluding utility bills] in respect of which payment is
made on or after the first day of 73-iii[July], 2000, for a sum exceeding fifty thousand rupees otherwise than by

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thousand rupees, 846[in aggregate to a single supplier in a tax period] excluding payment against a utility
bill, shall be made by a crossed cheque drawn on a bank or by crossed bank draft or crossed pay order or
any other crossed banking instrument showing transfer of the amount of the sales tax invoice in favour of
the supplier from the business bank account of the buyer 847[:]
848
[Provided that online transfer of payment from the business account of buyer to the business
account of supplier as well as payments through credit card shall be treated as transactions through the
banking channel, subject to the condition . that such transactions are verifiable from the bank statements
of the respective buyer and the supplier.]
849
[Provided further that adjustments made by a registered person in respect of amounts payable
and receivable to and from the same party shall be treated as payments satisfying the provisions of this
sub-section subject to following conditions, namely:—
(a) sales tax has been charged and paid by both parties under the relevant provisions of this
Act and rules prescribed thereunder, wherever applicable; and
(b) the registered person has sought prior approval of the Commissioner before making such
adjustments.]
(2) The buyer shall not be entitled to claim input tax credit, adjustment or deduction, or
refund, repayment or draw-back or zero-rating of tax under this Act if payment for the amount is made
otherwise than in the manner prescribed in sub-section (1), provided that payment in case of a transaction
on credit is so transferred within one hundred and eighty days of issuance of the tax invoice.
(3) The amount transferred in terms of this section shall be deposited in the business bank
account of the supplier, otherwise the supplier shall not be entitled to claim input tax credit, adjustment or
deduction, or refund, repayment or draw-back or zero-rating of tax under this Act.
Explanation.-for the purpose of this section the term “business bank account” shall mean a bank
account utilized by the registered person for business transactions, declared to the 850[Commissioner] in

a crossed cheque drawn on a bank or by a crossed bank draft or pay order 73-iv[or any other banking
instrument showing transfer of the payment in favour of seller from the business account of the buyer) shall
not be admissible for the purposes of input tax credit, adjustment or deduction, or ref und, repayment or
drawback or zero-rating etc. of tax under this Act 73-v[provided that payment, in case of such transaction on
credit, is so transferred within one hundred and twenty days of issuance of tax invoice 73-vi[:]
73-vii
[Provided that when a registered person supplies taxable goods for a sum exceeding fifty
thousand rupees in respect of which payment is received otherwise than in the manner prescribed in this
section read with section 7, he shall not be entitled to claim adjustment or fund of input tax in respect of such
goods.]
[73-i Section 73 was added vide the Tax Law (Amendments) Ordinance, 1999 (XXII of 1999) promulgated on 17th
December, 1999]
[73-ii The brackets and words were inserted vide the Sales Tax (Amendment) Ordinance, 2000 (XIII of 2000)
(Made on 5th September, 2000]
[73-iii Substituted the word January vide the Sales Tax (Amendment) Ordinance, 2000 (XIII of 2000), assented on
5th September, 2000]
[73-iv The Word inserted vide the Sales Tax (Amendment) Ordinance, 2000 (XIII of 2000), assented on 5th
September, 2000]
[73-v The words added vide the Finance Ordinance, 200I (XXV of 200I) dated 18th June, 2001
[73-vi Substituted for the full stop vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June, 200I
[73-vii Proviso added vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June 2001]
846 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
847 Substituted for the full stop vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
848 Proviso was added vide the Finance Act, 2005 (VII of 2005), assented on 29th June, 2005
849 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
850 Substituted the word “Collector” vide the Finance Act, 20I0 (XVI of 20I0), assented on 30th June, 2010 effective from
5th June, 2010. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 2010 (III of 2010.

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 851
whose jurisdiction he is registered [through Form STR 1 or change of particulars in registration
database].
852
[(4) A registered 853[person] hall not be entitled to deduct input tax (credit adjustment or
deduction of input tax) which is attributable to such taxable supplies exceeding, in aggregate, 854[the
amount in a financial year or in a tax period, as may be prescribed by the Board, with the approval of
Federal Government] as are made to certain person who is not a registered person under this Act:.]
Provided that the aforesaid shall not apply to supplies made to.-
(a) Federal / provincial / local Government departments, authorities, etc. not engaged in
making of taxable supplies;
(b) Foreign Missions, diplomats and privileged persons; [***]
(c) all other persons not engaged in supply of taxable goods; [and]
(d) persons or classes of person, specified by the Board through notification in the official
Gazette subject to such conditions and restrictions as may be specified therein.]
855
[74. Condonation of time-limit.-Where any time or period has been specified under any of the
provisions of the Act or rules made there under within which any application is to be made or any act or
thing is to be done, the 856[Board] may, 857[at any time before or after the expiry of such time or period,]
in any case or class of cases, permit such application to be made or such act or thing to be done within
such time or period as it may consider appropriate 858[:]]
859
[Provided that the Board may, by notification in the official Gazette, and subject to such
limitations or conditions as may be specified therein, empower any 860[Commissioner] to exercise the
powers under this section in any case or class of cases [:]
861
[Provided further that regardless of anything stipulated in this section, or any provision of this
Act, or any other applicable law currently in force, and notwithstanding any decision, order or judgement
issued by any forum, authority or court, the maximum period of extension under this section by the Board
or the Commissioner, as the case may be, shall not exceed two years in aggregate:
Provided also that where there are reasons to believe that significant loss to exchequer or taxpayer
has been caused by an act of omission or commission by the registered person or by any authority
mentioned in section 30, a committee of members as notified by the Board may further condone the
limitation specified for a period as it may deem fit, after providing a reasonable opportunity of being
heard to the registered person concerned.]

promulgated on 6th February, 2010 & the Finance (Amendment) Ordinance, 2009 (XXII of 20(9) promulgated on 28th
October, 2009l
851 Inserted vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013
852 Added vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th December, 2019
853 Word substituted by Finance Act, 2020.
854 Substituted the words “one hundred million rupees in financial year or ten million rupees in a tax period” vide the
Finance Act, 2025, dated 29th June, 2025
855 Section 74 was added vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002
856 Substituted the words “Central Board of Revenue” vide the Finance Act, 2007 (IV of 2007), assented on 30th June,
2007
857 Inserted vide the Finance Act, 2022 dated on 30th June, 2022
858 Substituted for the full stop vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
859 Proviso was added vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
860 Substituted the word “Collector” vide the Finance Act, 2010 (XVI of 2010), assented on 30th June, 20I0), effective from
5th June, 20I0. Earlier the same amendment was made vide the Finance (Amendment) Ordinance, 20I0 (III of 20I0)
promulgated on 6th February, 20I0) & the Finance (Amendment) Ordinance, 2009 (XXII 01”2009) promulgated on
28th October. 2009
861 Added vide the Finance Act, 2025, dated 29th June, 2025

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 862
[Explanation.-For the purpose of this section, the expression “any act or thing is to be done”
includes any act or thing to be done by the registered person or by the authorities specified in section 30
of this Act.]
863
[74A. Validation.- 864[(1)]All notifications and orders issued and notified in exercise of the powers
conferred upon the Federal Government, before the commencement of Finance Act, 865[2018] shall be
deemed to have been validly issued and notified in exercise of those powers.]
866
(2) Notwithstanding any omission, irregularity or deficiency in the establishment of or
conferment of powers and functions on the Directorate General (Intelligence and Investigation), Inland
Revenue and authorities specified in section 30A, all orders passed, notices issued and actions taken,
before commencement of the Finance Act, 2018, in exercise or purported exercise of the powers and
functions of the officers of Inland Revenue under this Act by the Director General (Intelligence and
Investigation), Inland Revenue or the authorities specified in section 30A shall be deemed to have been
validly passed, issued and taken under this Act.]
867
[75. Application of the provisions of Act IV of 1969 to Sales Tax.-The Federal Government may,
by notification in the official. Gazette, declare that any of the provision of the Customs Act, 1969 (IV of
1969), relating to the levy of, and exemption from, customs duties draw-back of duty, warehousing,
confiscation, and procedure relating to offences and appeals shall, with such modifications and alterations
as it may consider necessary or desirable to adapt them to the circumstances, be applicable in regard to
like matters in respect of the tax imposed by section 3.]
868
[76. Fee and service charges.- 869[(1) The 870[Board with approval of the Federal Minister-in-charge]
may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may
deem fit to impose, levy fee and service charges for valuation, in respect of any other service or control
mechanism provided by any formation under the control of the Board, including ventures of publicprivate
partnership, at such rates as may be specified in the notification.]
871
[(2) The Board may authorize and prescribe the manner in which fee and service charges
collected under sub-section (1) shall be expended.]
872
[77. Uniform.-The Board may, by notification in the official Gazette, prescribe rules for wearing of
uniform by officers and staff of Inland Revenue Services.]
873
[***]

862 Explanation was added vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011
863 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
864 Added vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
865 Substituted the word “2017” vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
866 Added vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
867 Section 75 was added vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003
868 Added vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019
869 Renumbered vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
870 Substituted the words “Federal Government” vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019)
assented on 27th December, 2019
871 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
872 Added vide the Finance Act, 2022 dated on 30th June, 2022
873 The First Schedule was omitted vide the finance Supplementary (Amendment) Act, 1997 (IV of 1997). At the time of
omission, The First Schedule was as under:-
The
fs-i
[F1RST SCHEDULE
[See clause (a) of sub-section (2) of section 3)

Serial Description Heading Nos of the First Schedule to the

No. Customs Act, 1969 (IV of 1969)
(1) (2) (3)

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 874
[***]

1. In-edible tallow 1502.0020

2. Iron oxide yellow. 2530.4000, 2821.1000
3. Iron oxide red. 2530.4000, 2821.1000
4. Titanium oxides. 28.23
5. Methanol 2905.1100
6. Pentaerythritol 2905.4200
7. Phenol 2907,1100
8. Methyl ethyl ketone 2914.1200
9. Butyl acetate 2915,3300
10. Phthalic anhydride 2917,3500
11. Amine-function compounds; oxygen function amino- compounds, 29.21, 29.22
12. Melamine. 2933.6100
13. Pigments and preparations based on titanium dioxide. 3206.1000
14. Zirconium drier. 32.11
15. Cobalt Napthenate drier. 32.11
16. Calcium napthenate drier 32.11
17. Mixed alkyl benzene. 3817.1000
18. Bentone 2508.1000, 3823.9000
19. Plastics in primary forms; waste, parings and scrap of plastics. 39.01 to 39.15
20. Pig iron 72.01
21. Iron and steel scrap fs-ii[(excluding ship plates obtained from ship 72.04
breaking)].
22. Flat-rolled products of iron or non-alloy steel (hot-rolled). 72.08, 7211.I300, 7211.1400, 7211.1900
23. Flat-rolled products of iron or non-alloy steel (cold- rolled). 72.09, 7211.2300, 7211.2900, 7211.9000
24. Flat rolled products of iron or non-alloy steel, clad, plated or 72.10,72.12
coated
25. Flat rolled products of stainless steel 72.19,72.20
26. Flat rolled products of alloy steel 72.25, 72.26”
[fs-i First Schedule was added vide the Finance Act, 1996 (IX of 1996)]
[fs-ii The brackets and the words were added vide the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of
1996)]
874 Second Schedule was omitted vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997). Earlier this
amendment was made vide the Sales Tax (Third Amendment) Ordinance, 1996 (CXXI of 1996), effective from 29th
December, 1996. The Second Schedule at the time of omission was as under:--
ss-i
[The
SECOND SCHEDULE
[See clause. (b) of sub-section (2) of section 3]
Serial Description Heading Nos of the First
No. Schedule to the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
1. Plants, vegetable saps and extracts of a kind used in pharmacy. If imported 1211.9091, 1302.1910.
these will be subject to similar conditions as are envisaged for the purposes
of Customs Act.
2. Natural calcium phosphates. 25.10.
3. Natural aluminum calcium phosphate 25.10.
4. Phosphatic chalk. 25.10
5. Medicaments excluding the following Respective headings of Chapter
30.
Filled infusion solution bags imported with or without infusion giving sets.
(ii) Scrub (washing preparation).
(iii) Soft soap
(iv) Adhesive plaster
(v) Surgical tapes
(vi) Liquid paraffin.
(vii) Disinfectants
(viii) Medicated shampoos
(ix) Absorbent cotton wool

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6. Substances registered as drugs under the Drugs Act, 1976 respective Respective headings
headings. (XXXI of 1976), excluding the following:-
(i) Filled infusion solution bags imported with or without infusion giving
sets.
(ii) Scrub (washing preparation).
(iii) Soft soap.
(iv) Adhesive plaster.
(v) Surgical tapes.
(vi) Liquid paraffin.
(vii) Disinfectants.
(viii) Medicated shampoos.
(ix) Absorbent cotton wool.
7. Radio-active chemical elements and radio-active isotopes Respective Respective headings
headings and their compounds for treatment of diseases, for government
hospitals and hospitals providing free medical facilities to patients.
8. Raw materials for basic manufacture of pharmaceutical Respective headings Respective headings
active ingredients. If imported these will be subject to similar conditions as
are envisaged for the purposes of Customs Act.
9. Raw materials for manufacture of pharmaceutical products. If imported these Respective headings
will be subject to similar conditions as are envisaged for the purposes of
Customs Act.
10. Packing materials for manufacture of pharmaceutical products, including Respective headings
neutral glass tubings for the manufacture of vials and ampoules. If imported
these will be subject to similar conditions as are envisaged for the purposes
of Customs Act.
11. Raw materials for manufacture of syringes and infusion Respective headings Respective headings
giving sets. If imported these will be subject to similar conditions as are
envisaged for the purposes of Customs Act.
12. Raw materials for manufacture of artificial parts of human body. If imported Respective headings.
these will be subject to similar conditions as are envisaged for the purposes
of Customs Act; artificial limbs/parts of human body.
13. Dialysis bath concentrate solution for use in kidney Respective headings Respective headings.
machines.
14. Raw materials for non-oral diagnostic re-agents, imported Respective Respective headings
headings by approved manufacturers of non-oral diagnostic kits.
15. Non-oral diagnostic re-agent kits Respective headings
16. Raw materials, equipments and component parts thereof for the production of Respective headings.
vaccine and other life saving drugs for National Institute of Health,
Islamabad.
17. Laundry soap 3401.1910
18. Photographic plates and films for X-ray 3701.1000, 3702.1000.
19. Books, journals, newspapers and periodicals, excluding directories of all 49.01,49.02,49.03.
sorts
20. Colostomy bags 3926.9090.
21. Surgical gloves. 4015.1100, 3926.2010.
22. Raw materials used in the manufacture of insecticides and pesticides meant Respective headings.
for agricultural purposes. If imported these will be subject to similar
conditions as are envisaged for the purposes of Customs Act.
23. Electric etching machines; ultrasonic machines; and sand blasting machines, Respective headings
for the manufacture of surgical instruments.
24. Specially designed blood bank refrigerators and mortuary refrigerators. 84.18
25. Ambulances 87.03.
26. Instruments and appliances used in medical, surgical, dental or veterinary 90.18.
sciences, including scientigraphic apparatus; other electro-medical
apparatus and sight-testing instruments.
27. Mechano therapy appliances; massage apparatus; psycho logical aptitude- 90.19, 90.20.
testing apparatus; ozone therapy, oxygen therapy, aerosol therapy, artificial
respiration or other therapeutic respiration apparatus; other breathing
appliances and gas masks, excluding protective masks having neither
mechanical apparatus nor replacement filters.

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 875
[The

28. Orthopedic appliances, including crutches, surgical belts and trusses; splints 90.21.
and other fracture appliances; artificial parts of the body; hearing' aids and
other appliances which are worn or carried, or implanted in the body to
compensate for any defect or disability.
29. Medical, surgical, dental or veterinary furniture. 94.02.
30. Plant and machinery, including coal mining machinery, Respective headings. Respective headings
for balancing, modernization and replacement or initial installation of power
generation projects, including hydel power generation projects. If imported
these will be subject to similar conditions as are envisaged for the purposes
of Customs Act.
31. Plant and machinery for petroleum Sector projects. If imported these will be Respective headings
subject to similar conditions as are envisaged for the purposes of Customs
Act.
32. Plant and machinery for power transmission system projects and grid Respective headings.
stations. If imported these will be subject to similar conditions as are
envisaged for the purposes of Customs Act.
33. Plant and machinery for manufacture of fertilizers, insecticides and Respective headings.
pesticides.
34. Cream fat and oil derived from milk and cheese, packaged and sold under Respective headings.
brand names.
[i Second Schedule was added vide the Finance Act, 1996 (IX of 1996)]
875 Third Schedule substituted by Finance Act, 1998 (III of 1998). At the time of substitution it was as under:--
The
ts-i
[THIRD SCHEDULE
(See clause (c) of sub-section (2) of section 3)

Serial Description of Supplies. Heading Nos. of the First

No. Schedule to the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
1. Biscuits and confectionery Respective headings
2. Fruit juices and vegetable juices. 20.09
3. Ice cream 21.05
4. Aerated waters beverages. 22.01,22.02
5. Syrups and squashes. Respective headings
6. Cigarettes. 2402.2000
ts-ii
[ **** ****]
8. Lubricating oils and oil additives. 2710.0081, 2710.0082
9. Paint, varnishes, pigments, distempers, colours, dyes, enamels, glazes, Respective headings of Chapter
lusters, thinners, blacks, 32 cellulose lacquers and polishes. 32.
10. Soap. 340 LlI20, 340 LI 130
11. Detergents. 3402.9091
ts-iii
[ **** **** ]
13. Deep freezers and refrigerators. 84.18
14. Air conditioners. 84.15
15. Television sets. 85.28
16. Bulbs and tube lights. 85.39
17. Motor cars. 87.03
18. Motor cycles and mopeds. 87.11”
[ts-i Third Schedule added vide the Finance Act, 1996 (IX of 1996)]
[ts-ii S. No.7 was omitted vide the Finance Act, 1997.] At the time of omission S. No.7 was as under-
“7. Cement 25.23”
[ts-iii Serial No. 12 and the entries relating thereto was omitted vide the Finance Supplementary (Amendment) Act,
1997 (IV of 1997). Earlier it was omitted vide the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of
1996), effective from 2nd November, 1996 again this amendment was made vide the Sales Tax (Amendment)
Ordinance, 1997 (XXXIX of 1997) Serial No. 12 at the time of omission was as under:-
“12. Footwear 64.01, 64.02, 64.03, 64.04,64.05”

[138]
 THIRD SCHEDULE
876
[See [clause (a)] of sub-section (2) of section 3]
Serial Description Heading Nos of the First Schedule
No. to the Customs Act, 1969
(IV of 1969)
(1) (2) (3)
1. Fruit juices and vegetable juices. 20.09
877
2. Ice cream. [2105.0000]
3. Aerated waters or beverages. 22.01 and 22.02
4. Syrups and squashes. Respective headings.
5. Cigarettes. 2402.2000.]
878
[6. Toilet soap 3401 1100 and 3401.2000]
879 880
[7 Detergents [Respective heading]
8. Shampoo 3305.1000
9. Toothpaste 3306.1010
10. Shaving Cream 3307.1000
11. Perfumery and cosmetics Respective sub headings of 33.03 and
33.04.]
881
[ ***
*** ]
882
[14. Tea Respective sub headings of 09.02
15. Powder drinks 21.06
16. Milky drinks 2106.9090]
883
[17. Toilet paper and tissue paper 4818.1000 and 4818.2000. ]
884
[18. Spices sold in retail packing bearing brand names and 09.04, 09.06, 09.08 and 09.10

876 Substituted for the word, brackets and letter “clause (c)” vide the Finance Ordinance, 2002 (XXVII of 2002)
promulgated on 15th June, 2002
877 Substituted for the figure “21.05” vide the Finance Act, 2017 assented on 19th June, 2017
878 Serial No.6 and the entries relating thereto was substituted vide the Finance Act, 2005 (VII of 2005). At the time of
substitution Serial No.6 was as under:--
ts-iv
[6 Substances registered as drugs under the Chapter 30]” Drugs Act, 1976 (XXXI Chapter 30
of 1976) and medicaments as are classifiable under any heading of the First
Schedule to the Customs Act, 1969 (IV of 1969)
ts-v
[excluding supplies made to government hospitals on or after the 21st day of
March, 2002]
[ts-iv Serial No.6 and the entries relating thereto was added vide the Sales Tax (Amendment) Ordinance, 2002
(XVI of 2002), assented on 2Ist March, 2002]
[ts-v The words, comma and figures was added vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated
on 15th June, 2002]
879 S. Nos. 7 to II and the entries relating thereto was added vide the Finance Act, 2005 (VII of 2005)
880 Substituted the figures “3402.2000” vide the Finance Act, 2022 dated on 30th June, 2022
881 S. Nos. 12 & 13 and the entries relating thereto were omitted vide the Finance Act, 2008 (I of 2008) assented on 26th
June, 2008. At the time of omission, S. Nos. 12 & 13 were as under:--
ts-vi
[ 12 Biscuits 1905.3100 and 1905.3200
13. Confectionery Respective sub-headings of 17.04]”
[ts-vi S. Nos. 12 & 13 and the entries relating thereto were added vide the Finance Act, 2005 (VII of 2005)]
882 S. Nos. 14 to 16 and the entries relating thereto were added vide the Finance Act, 2005 (VII of 2005)
883 Serial No. 17 and the entries relating thereto were substituted vide the Finance Act, 2006 (III of 2006), assented on 30th
June, 2006). At the time of substitution Serial No. 17 was as under:--
ts-vii
[17. Footwear Respective sub-headings of 64.01, 64.02, 64.03, 64.04 and 64.05.]”
[ts-vii S. No. 17 and the entries relating thereto were added vide the Finance Ordinance, 2005 (XXVII of 2005)]
884 Serial Nos. 18 to 21 and the entries relating thereto were added vide the Finance Act, 2006 (III of 2006), assented on
30th June, 2006

[139]
 trade marks
885
[ ***
*** ]
21. Shoe polish and shoe cream 3405.1010]
886
[*** *** ***]
887
[*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***]
(32) Fertilizers Respective headings.
(33) Cement sold in retail packing Respective headings.
888
[*** *** ***
*** *** ***]
*** *** ***
889
[37. Mineral/bottled water Respective headings]
890
[38. Household electrical goods, including air conditioners, Respective headings
refrigerators, deep freezers, televisions, recorders and
players, electric bulbs, tube-lights, electric fans, electric
irons, washing machines and telephone sets.
39. Household gas appliances, including cooking range, Respective headings
ovens, geysers and gas heaters.
40. Foam or spring mattresses and other foam products for Respective headings
household use.
41. Paints, distempers, enamels, pigments, colours, Respective headings
varnishes, gums, resins, dyes, glazes, thinners, blacks,
cellulose lacquers and polishes sold in retail packing
42. Lubricating oils, brake fluids, transmission fluid, and Respective headings
other vehicular fluids sold in retail packing.
43. Storage batteries excluding those sold to automotive Respective headings
manufacturers or assemblers

885 S. Nos. 19 & 20 and the entries relating thereto was omitted vide the Finance Act, 2008 (I of 2008), assented on 26th
June, 2008. At the time of omission S. No. 19 & 20 were as under:-
ts-viii
[19 Electric bulbs including energy saving lamps and 85.39
fluorescent tube lights
20 Snacks including potato chips sold in retail packing 19.05 and 20.05]
[ts-viii Serial Nos. 19 to 20 and the entries relating thereto was added vide the Finance Act, 2006 (III of 2006),
assented on 30th June, 2006]
886 S. No. 22 and the entries relating thereto was omitted vide SRO 681(I)/236 dated 26th July, 2013. At the time of
omission S. No. 22 was as under:--
ts-ix
[22 Finished or made-up articles of textile and Respective leather, including garments, Respective
footwear, and headings. bed ware, sold in retail packing headings.
[ts-ix Added vide the Finance Act, 2013 (XXII of 2013)], assented on 29th June, 2013]
887 Serial numbers 23 to 31 and relating entries were omitted vide SRO 895(I)/2013 dated 4th October, 2013
888 Serial numbers 34 and 35 and relating entries were omitted vide SRO 895(I)/2013 dated 4th October, 2013
889 Inserted vide the Finance Act, 2016
890 Added vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019

[140]
 44. Storage batteries excluding those sold to automotive Respective headings
manufacturers or assemblers
45. Motorcycles Respective headings
46. Auto rickshaws Respective headings
47. Biscuits in retail packing with brand name Respective headings
48. Tiles Respective headings
49. Auto-parts, in retail packing, excluding those sold to Respective headings;]
automotive manufacturers or assemblers
891
[*** *** ***]
892
[51 DAP Respective headings.]
893
[52. Import of pet food including of dogs and cats sold in 2309.1000
retail packing
53 Import of coffee sold in retail packing 0901.1100, 0901.1200, 0901.2100,
0901.2200, 0901.9000, 2101.1120
54 Import of chocolates sold in retail packing 1704.9010, 1806.2090, 1806.3100,
1806.3200, 1806.9000
55 Import of cereal bars sold in retail packing 1904.1010, 1904.1090, 1904.2000,
1904.3000, 1904.9000.]
894
[***]
895
[The
FIFTH SCHEDULE
[See section 4]
Serial Description
No.
(1) (2)
896
[*** ***]

891 Sr. No. 50 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 50 was as under:
“50. Sugar except where it is supplied as an industrial raw material to Respective heading”
pharmaceutical, beverage and confectionery industries
892 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
893 Added vide Finance Act, 2025 dated 29th June, 2005
894 Fourth Schedule was omitted vide Finance Act, 1998(11I of 1998). Before omission Fourth Schedule was added vide
the Finance Act, 1996 (IX of 1996). At the time of omission it was as under:--
The
FOURTH SCHEDULE
[See clause (d) of sub-section (2) of section 3]
Serial Description of supplies Amount per month per kiln.
No.
(1) (2) (3)
1. Brick kilns (commonly known as Bhatta with Chimney) located in the Rs.2750.00
jurisdiction of Districts of Multan, Faisalabad, Lahore, Rawalpindi and
Islamabad Capital Territory.
2. Brick kilns (commonly known as Bhatta with Chenney) in parts of Pakistan Rs. 1375.00
other than mentioned against serial No.1 above.
3. 'Small brick kilns (commonly known as Bhatti or Kori and is without Rs.440.00”
Chimney)

895 Fifth Schedule was added vide the Finance Act, 1996 (IX of 1996)
896 Sr. No. 1 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
1 was as under:-

[141]
 (iii) Supply of spare parts and equipment for ships and aircraft falling under (i) and (ii) above
(iv) Supply of equipment and machinery for pilotage, salvage or towage services.
(v) Supply of equipment and machinery for air navigation services.
(vi) Supply of equipment and machinery for other services provided for the handling of ships or
aircraft in a port or Customs Airport.
2. Supply to diplomats, diplomatic missions, privileged persons and privileged organizations which
are covered under various Acts, Orders, Rules, Regulations and Agreements passed by the
Parliament or issued or agreed by the Government of Pakistan.]
897
[*** ***]
898
[ *** ]
899
[5. Supplies of raw materials 5[, components and goods for further] manufacture of goods in the
Export Processing Zones.]
900
[*** ***]
901
[*** ***]

“1. Supply, repair or maintenance of any ship which is neither;

(a) a ship of gross tonnage of less than 15 LDT; nor
(b) a ship designed or adapted for use for recreation or pleasure
(ii) Supply, repair Of maintenance of any aircraft which is neither;
(a) an aircraft of weight-less than 8000 kilograms; nor
(b) an aircraft designed or adapted for use for recreation or pleasure”
897 Sr. No. 3 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission S. No. 3 was as under:
“3. Supplies to duty free shops, provided that in case of clearance from duty free shops against various baggage
rules issued under the Customs Act, 1969 (IV of 1969), the supplies from duty free shops shall be treated as
import for the purpose of levy of sales tax.”
898 S. No. 4 and the entry relating thereto was omitted vide the Finance Act, 2012 effective from 2nd June 2012. At the time
of omission S. No. 4 was as under:--
“4 Supplies against international tenders”
899 S. No. 5 was added vide the Finance Act, 1997 (XXII of 1997)
900 Sr. No. 6 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
6 was as under:-
“6. Supplies of such locally manufactured plant and machinery to petroleum and gas sector Exploration and
Production companies, their contractors and sub-contractors as may be specified by the Federal Government,
by notification in the official Gazette, subject to such conditions and restrictions as may be specified in such
notification.”
901 Sr. No. 6A was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 6A was as under:

[142]
902
[7. Supplies made to exporters under the Duty and Tax Remission Rules, 2001 subject to the
observance of procedures, restrictions and conditions prescribed therein.]
903
[8. Imports or supplies made to Gawadar Special Economic Zone, excluding vehicles falling under
heading 87.02 of the Pakistan Customs Tariff, subject to such conditions, limitations and
restrictions as the 904[Board] may impose.]
905
[8A Imports or supplies made by, for or to a qualified investment as specified at Serial No.1 of the First
Schedule to the Foreign Investment (Promotion and Protection) Act, 2022 for the period as
specified in the Second Schedule to the said Act.]
906
[*** ***]
907
[*** ***]
908
[*** ***]
12. The following goods and the raw materials, packing materials, sub-components, components, sub-
assemblies and assemblies imported or purchased locally for the manufacture of the said goods,

“6A. Supplies of locally manufactured plant and machinery of the following specifications, to manufacturers in
the Export Processing Zone, subject to the conditions, restrictions and procedure given below, namely:—
(i) Plant and machinery, operated by power of any description, as is used for the manufacture or
production of goods by that manufacturer;
(ii) Apparatus, appliances and equipments specifically meant or adapted for use in conjunction with the
machinery specified in clause (i);
(iii) Mechanical and electrical control and transmission gear, meant or adapted for use in conjunction with
machinery specified in clause (i); and
(iv) Parts of machinery as specified in clauses (i), (ii) and (iii) identifiable for use in or with such
machinery.
Conditions, restrictions and procedures:—
(a) the supplier of the machinery is registered under the Act;
(b) proper bill of export is filed showing registration number;
(c) the purchaser of the machinery is an established manufacturer located in the Export Processing Zone
and holds a certificate from the Export Processing Zone Authority to that effect;
(d) the purchaser submits an indemnity bond in proper form to the satisfaction of the concerned
Commissioner Inland Revenue that the machinery shall, without prior permission from the said
Commissioner, not be sold, transferred or otherwise moved out of the Export Processing Zone before a
period of five years from the date of entry into the Zone;
if the machinery is brought to tariff area of Pakistan, sales tax shall be charged on the value assessed on the
bill of entry; and
(f) breach of any of the conditions specified herein shall attract legal action under the relevant
provisions of the Act, besides recovery of the amount of sales tax along with default surcharge and
penalties involved.;”
902 S. No.7 was added vide the Finance Ordinance, 2001 (XXV of 2001) issued on 18th June, 200I
903 S. No.8 was added vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004
904 Substituted the words “Central Board of Revenue” vide the Finance Act, 2007 (IV of 2007), assented on 30th June,
2007
905 Inserted vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023.
906 Sr. No. 9 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission S. No. 9 was as under:
“9. Goods exempted under section 13, if exported by a manufacturer.
907 Sr. No. 10 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
10 was as under:-
“10. Petroleum Crude Oil (PCT heading 2709.0000).”
908 Sr. No. 11 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
11 was as under:-
“11. Raw materials, components, sub-components and parts, if imported or purchased locally for use in the
manufacturing of such plant and machinery as is chargeable to sales tax at the rate of zero percent, subject to
the condition that the importer or purchaser of such goods holds a valid sales tax registration showing his
registration category as “manufacturer”; and in case of import, all the conditions, restrictions, limitations and
procedures as are imposed by notification under section 19 of the Customs Act, 1969 (IV of 1969), shall
apply.”

[143]
 subject to the conditions, limitations and restrictions as 909[prescribed by the Board]:-
910
[***]
911
[***]
912
[***]
913
[***]
914
[***]
915
[***]
916
[***]
917
[***]

909 Substituted the words “specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007” vide Finance Act,
2019 (V of 2019), assented on 30th June, 2019
910 Clauses “(i) to (ix)” were omitted vide the Finance Act, 2016. At the time of omission clauses were as under:--
(i) Colors in sets (PCT heading 3213.1000)
(ii) Writing, drawing and marking inks (PCT heading 3215.9010 and 3215.9090)
(iii) Erasers (PCT heading 4016.9210 and 4016.9290)
(iv) Exercise books (PCT heading 4820.2000)
(v) Pencil sharpeners (PCT heading 8214.1000)
(vi) Geometry boxes (PCT heading 9017.2000)
(vii) Pens, ball pens, markers and porous tipped pens (PCT heading 96.08)
(viii) Pencils including color pencils (PCT heading 96.09)
(ix) Milk i. [***] (PCT heading 04.01 ii. [***])
i The words “including flavored milk” were omitted vide Finance Act, 2015
ii The word and figures “and 0402.9900” were omitted vide Finance Act, 2015
911 Clauses (x) to (xvi) were omitted vide Finance Act, 2015. At the time of omission clauses (x) to (xvi) was as under:-
“(x) Yogurt (PCT heading 0403.1000)
(xi) Cheese (PCT heading 0406.1010)
(xii) Butter (PCT heading 0405.1000)
(xiii) Cream (PCT heading 04.01 and 04.02)
(xiv) Desi ghee (PCT heading 0405.9000)
(xv) Whey (PCT heading 04.04)
(xvi) Milk and cream, concentrated and added sugar or other sweetening matter (PCT heading 0402.1000)”
912 Clause (xvii) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission clause
(xvii) was as under:-
“(xvii) Preparations suitable for infants, put up for retail sale not exceeding rupees six hundred per two hundred grams
(PCT heading 1901.1000)”
913 Clause “(xviii)” was omitted vide the Finance Act, 2016. At the time of omission clause (xviii) was as under:--
(xviii) Fat filled milk (PCT heading 1901.9090)
(i) Colors in sets (PCT heading 3213.1000)
(ii) Writing, drawing and marking inks (PCT heading 3215.9010 and 3215.9090)
(iii) Erasers (PCT heading 4016.9210 and 4016.9290)
(iv) Exercise books (PCT heading 4820.2000)
(v) Pencil sharpeners (PCT heading 8214.1000)
(vi) Geometry boxes (PCT heading 9017.2000)
(vii) Pens, ball pens, markers and porous tipped pens (PCT heading 96.08)
(viii) Pencils including color pencils (PCT heading 96.09)
(ix) Milk i. [***] (PCT heading 04.01 ii. [***])
i The words “including flavored milk” were omitted vide Finance Act, 2015
ii The word and figures “and 0402.9900” were omitted vide Finance Act, 2015
914 Clause (xix) was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission clause (xix) was as under:
“(xix) Bicycles (PCT heading 87.12).”
915 Clause (xx) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission clause (xx)
was as under:-
“(xx) Colors in sets (PCT heading 3213.1000).”
916 Clause (xxi) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission clause
(xxi) was as under:-
“(xxi) Writing, drawing and marking inks (PCT heading 3215.9010 and 3215.9090)”
917 Clause (xxii) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission clause
(xxii) was as under:-

[144]
 (xxiii) Exercise books (PCT heading 4820.2000)
918
[***]
919
[***]
920
[***]
921
[***]
922
[13. Supplies of raw materials, components and goods for further manufacture of goods in the
Gwadar Free Zone and export thereof, provided that in case of supply to tariff area of Pakistan,
tax shall be charged on the value assessed on the Goods Declaration for import
14 Supplies of locally manufactured plant and machinery of the following specifications, to
manufacturers in the Gwadar Free Zone, subject to the conditions, restrictions and procedure
given below namely:−
(i) plant and machinery, operated by power of any description, as is used for the
manufacture or production of goods by that manufacturer.
(ii) apparatus, appliances and equipment specifically meant or adapted for use in conjunction
with the machinery specified in clause (i).
(iii) mechanical and electrical control and transmission gear, meant or adapted for use in
conjunction with machinery specified in clause (i).
(iv) parts of machinery as specified in clauses (i), (ii) and (iii), identifiable for use in or with
such machinery.
Conditions restrictions and procedures:-
(a) the supplier of the machinery is registered under the Act;
(b) proper bill of export is filed showing registration number;
(c) the purchaser of the machinery is an established manufacturer located in the Gwadar
Free Zone and holds a certificate from the Gwadar Port Authority to that effect;
(d) the purchaser submits an indemnity bond in proper form to the satisfaction of the
concerned Commissioner Inland Revenue that the machinery shall, without prior permission
from the said Commissioner, not be sold, transferred or otherwise moved out of the Gwadar Free
Zone before a period of five years from the date of entry into the Zone;
(e) if the machinery is brought to tariff area of Pakistan outside Gwadar Free Zone, sales tax
shall be charged on the value assessed on the Goods Declaration for import; and
(f) breach of any of the conditions specified herein shall attract legal action under the
relevant provisions of the Act, besides recovery of the amount of sales tax along with
default surcharge and penalties involved.]
923
[*** ***]

“(xxii) Erasers (PCT heading 4016.9210 and 4016.9290)”

918 Clause (xxiv) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission clause
(xxiv) was as under:-
“(xxiv) Pencil sharpeners (PCT heading 8214.1000)”
919 Clause (xxv) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission clause
(xxv) was as under:-
“(xxv) other drawing, marking out or mathematical calculating instruments (geometry box) (PCT heading 9017.2000).”
920 Clause (xxvi) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission clause
(xxvi) was as under:-
“(xxvi) Pens, ball pens, markers and porous tipped pens (PCT heading 96.08)”
921 Clause (xxvii) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission clause
(xxvii) was as under:-
“(xxvii) Pencils including color pencils (PCT heading 96.09)].”
922 Added vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020 effect from the 1st June, 2020
923 Sr. No. 15 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 15 was as under:
“15. Local supplies of raw materials, components, parts and plant and machinery to registered exporters
authorized under Export Facilitation Scheme, 2021notified by the Board with such conditions, limitations
and restrictions.”

[145]
924
[*** ***]
925
[*** ***]
926
[*** ***]
927
[*** ***]
20. Petroleum Crude Oil (PCT heading 2709.0000).]
928
[*** ***]
929
[The SIXTH SCHEDULE

924 Sr. No. 16 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 16
was as under:
16 Milk (PCT heading 04.01).
925 Sr. No. 17 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 17
was as under:
17 Fat filled milk (PCT heading 1901.9090)
926 Sr. No. 18 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 18 was as under:
“18. (i) Supply, repair or maintenance of any ship which is neither;
(a) a ship of gross tonnage of less than 15LDT; nor
(b) a ship designed or adapted for use for recreation or pleasure.
(ii) Supply of spare parts and equipment for ships falling under (i) above.
(iii) Supply of equipment and machinery for salvage or towage services.
(iv) Supply of equipment and machinery for other services provided for the handling of ships in a port.”
927 Sr. No. 19 was Omitted vide the Finance Act, 2022 dated on 30th June, 2022. At the time of omission Sr. No. 19 was as
under:-
i[19. Drugs registered under the Drugs Act, 1976 (XXXI of 1976), or medicaments as classified under chapter
30 of the First Schedule to the Customs Act, 1969 (IV of 1969) except PCT heading 3005.0000.
i Added vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
Laws (Third Amendment) Ordinance, 2021 (XXII OF 2021) dated 15th September, 2021.
928 Sr. No. 21 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 21
was as under:
21. Local supplies of commodities, raw materials, components, parts and plant and machinery to registered
exporters authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions,
limitations and restrictions as specified therein.]
929 Sixth Schedule was substituted vide Finance Act, 2005 (VII of 2005). Earlier the Sixth Schedule was substituted vide
Finance Act, 1998 (III of 1998). At the time of substitution it was as under:-
The SIXTH SCHEDULE
[See section 13(1)]
Serial No. Description Heading Nos. of the
First Schedule to the
Customs Act, 1969
(IV of 1969).
(1) (2) (3)
1. Live animals. Respective headings of
Chapter
2. Agricultural produce of Pakistan, not subjected to any further process of Respective headings.
manufacture
ss-i
3. [Food stuff] for human consumption which shall mean:-- Respective headings.
(i) all cereals, grains and pulses whether or not milled, hulled, polished,
cellophane packed for retail sale ss-ii[***];
(ii) all vegetables, fruits ss-iii[(excluding imported fruits, except fruits
imported from Afghanistan)] and fruit juices whether fresh, frozen or
otherwise preserved [e.g., in “cold storage”] but excluding fruits, fruit
juices and vegetables bottled, canned or packaged;
(iii) all eggs, poultry and meats of bovine animals, fish and crustaceans,
whether or not fresh, frozen or otherwise preserved;

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ss-iv ss-v
[ [(iv) Fresh, liquid and dried milk, without addition of sugar or any other Respective headings.
sweetening matter whether packed or not; milk preparations obtained by
replacing one or more of the constituents of milk by another substance,
whether or not packed for retail sale, falling under Heading No. 19.01 of the
First Schedule to the Customs Act, 1969 (IV of 1969); plain yogurt excluding
packaged or sold under trade mark or brand name;]
(v) cream. whey and cheese excluding those packaged and sold under brand
names or trade marks:
(vi) breads prepared in tandoors and bakeries, vermicillies. nans: chapatties,
sheer mal, bun rusk ss-vi[***];
ss-vii
[(vii) Cooked or prepared food stuff served in messes run on the basis of mutuality
and industrial canteens for workers of a particular class.]
(viii) ice and water but excluding those for sale under brand names or
trademarks;
ss-viii
[(ix) table salt including iodized salt, excluding salt sold in retail packing bearing
brand names and trademarks;]
ss-ix
[(X) red chillies, ginger and turmeric excluding red chillies, ginger and turmeric
sold in retail packing bearing brand names and trade marks;]
ss-x
[(xi) *** ]
ss-xi
[(xii) poultry and meat of bovine animals, fish and crustaceans whether or not Respective headings
fresh, frozen or otherwise preserved and sold in retail packing’s or of Chapter 2 and 3;]
otherwise with or without brand names and trademarks.
ss-xii ss-xiii
[3A. Eggs for hatching (parent stock), including consignments of such eggs [0407.0010))
imported either against bank guarantee or otherwise but without payment of
sales tax since the 1st July, 1998.
4. The following agricultural produce on their import into Pakistan:--
Bulbs, tubers, etc., 06.01
ss-xiv
[Oil palm seedling. 0602.2090]
Potatoes. 0701.1000 and
Onions and shallots. 0701.9000
Garlic. 0703.1000
Dried leguminous vegetables, shelled, whether or not 0703.2000
skinned or split. 07.13
Live plants and seeds of vegetables, fruits and flowers. Respective headings
Wheat. 10.01
Oats. 10.04
Com seeds. 1005.1000
Grain sorghum seeds. 1007.0000
Millet seeds. 1008.2000
ss-xv
[ *** ]
Seeds, fruits and spores for sowing. 12.09
ss-xvi
Cinchona bark [1211.9900]
Sugar beet. 1212.9100
ss-xvii
Sugar cane. [1212.9900]
5 Supply of cotton seed which is:- 1207.2000
ss-xviii
[***]
(b) exclusively meant for sowing purposes, subject to such conditions asthe
Board may specify
ss-xix ss-xx
[6. [Desi Ghee derived from milk; butter not sold under brand name or trade Respective headings
mark and supply of locally produced crude vegetable oil ss-xxi[obtained from
the locally produced seeds ss-xxii[other than cotton seed.], except cooking oil,
without having undergone any process except the process of washing.]
ss-xxiii
[6A. Edible oils and vegetable ghee, including cooking oil, on which Central Respective headings
Excise Duty is charged, levied and collected as if it were a tax payable under
section 3 of this Act.
ss-xxiv
[ *** ]
ss-xxv
[ *** ]
ss-xxvi
[ *** ]
10. *** ]

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 11. Contraceptives ss-xxvii[and accessories therefore] ss-xxviii
[Respective
headings]
ss-xxix
[12 *** ]
ss-xxx
[13 *** ]
ss-xxxi
[14 *** ]
ss-xxxii
[15 *** ]
ss-xxxiii
[16 *** ]
ss-xxxiv
[17 *** ]
ss-xxxv
[18 *** ]
ss-xxxvi
[19 *** ]
20. Holy Quran, complete or in parts, with or without translation; audio and 49.01 and 85.24.
video cassettes recorded with Quranic verses; other holy books.
21. Newspapers, books, journals and periodicals excluding directories of all 49.01,49.02 and 49.03
sorts.
22. Currency notes, bank notes, shares, stocks ss-xxxvii[and] bonds ss-xxxviii[***] 49.07
23. Poultry feed and its ingredients Respective headings
24. Silver and gold, in un-worked condition; monetary gold. 71.06 and 71.08
25. Goods produced or manufactured in and exported from Pakistan which are Respective headings
subsequently imported in Pakistan within one year of their exportation,
provided conditions of section 22 of the Customs Act, 1969, are complied
with.
ss-xxxix ss-xl
[26 Goods (including dry fruits imported from Afghanistan) temporarily [99.19,99.20 and
imported into Pakistan. meant for subsequent exportation charged to zero- 99.21)]
rate of customs duty subject to the similar restrictions, limitations,
conditions and procedures as are envisaged for the purpose of applying
zero-rate of customs duty on such goods under the Customs Act, 1969 (IV of
1969).
ss-xlii
27. Re-importation of foreign origin goods which were temporarily exported out [99.18]
of Pakistan subject to similar conditions as are envisaged for the purposes of
ss-xli
[applying zero-rate of customs duty] under the Customs Act, 1969.
ss-xliv
28. Import of replacement goods supplied free of cost in lieu of defective goods [99.16]
imported, subject to similar conditions as are envisaged for the purposes of
ss-xliii
[applying zero-rate (If customs duty] under the Customs Act, 1969.
ss-xlv
29. [Defence stores (other than those as are manufactured in Pakistan) Respective headings
imported] by Federal Government against foreign exchange allocation for
defence stores supplied by manufacturers under Defence Production
Division ss-xlvi[trucks and vehicles falling under PCT heading 87.04 of the
First Schedule to the Customs Act, 1969 (IV of 1969) specially modified for
mounting defence equipments], their parts and accessories assembled or
manufactured by local manufacturers for supply to Armed Forces .
ss-xlviii
30. Articles imported through post as unsolicited gifts, subject to the same [99.09]
conditions as are envisaged for the purposes of ss-xlvii[applying zero-rate of
customs duty] under the Customs Act, 1969.
31. Imported samples ss-xlix[***] subject to the same conditions as are envisaged ss-li
[99.10]
for the purposes of ss-l[applying zero-rate of customs duty] under the
Customs Act, 1969.
32. Educational, scientific and cultural material imported from a country Respective headings
signatory to UNESCO Agreement or a country signatory to bilateral
commodity exchange agreement with Pakistan subject to the same conditions
as are envisaged for the purposes of exemption under the Customs Act, 1969.
33. Personal wearing apparel and bona fide baggage imported by overseas Respective headings
Pakistanis and tourists. if imported under various baggage rules and is
exempt from Customs duties.
34. Ship which is neither: Respective headings
(a) a ship of gross tonnage of less than 15 LOT; nor
(b) a ship designed or adapted for use for recreation or pleasure
35. Aircraft which is neither: Respective headings
(a) an aircraft of unladen weight of less than 8000 kilograms: nor
(b) an aircraft designed or adapted for use for recreation or pleasure Respective headings

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 36. Spare parts and equipment for ships and aircraft covered by serial number Respective headings
34 and 35 above.
ss-lii
[36A Import of ship stores, subject to the procedures, conditions and restrictions Respective headings
as may be specified by the Collector of Customs in this behalf including
those consignments of such stores that have been released without charging
sales tax since the 1st July, 1998 but excluding such consignments of ship
stores as have been cleared on payment of sales tax.
37 Equipment and machinery for pilotage, salvage or towage for use in ports or Respective headings
airports.
38. Equipment and machinery for air navigation. Respective headings
39. Equipment and machinery used for services provided for handling of ships Respective headings
or aircrafts in a customs port or Customs airport.
ss-liv
40. Goods imported by diplomats, diplomatic missions, privileged persons and [99.0 1,99.02,
privileged organizations which are covered under various Acts and, Orders, 99.03 and 99.06]
Rules, Regulations made there under and agreements by the Federal
Government ss-liii[provided that such goods are charged to zero-rate of
customs duty under the CustomsAct, 1969 and the conditions laid down for
customs purposes are observed].
ss-lv ss-lvii
[40A Import of articles of household and personal effects including vehicles and [99.05]]
also the goods for donation to projects established 'in Pakistan imported by
any of the rulers of Gulf Shaikhdoms who is in possession of residential
accommodation in Pakistan and goods including vehicles by the United Arab
Emirate dignitaries as are listed in column (2) against heading No.1 ss-
lvi
[99.05] of the First Schedule to the Customs Act, 1969 (IV of 1969) for
their personal use and for donation to welfare projects established in
Pakistan subject to the similar conditions as are envisaged for the purposes
of applying zero-rate of customs duty on such goods under the said Act.
41. Goods imported or supplied under grants-in-aid for which a specific consent Respective headings
has been obtained from the Central Board of Revenue;
supplies and imports under agreements signed by the Government of
Pakistan before the 30th June, 1996, provided the agreements contained the
provision for exemption of tax at the time of signing of agreement,
42. Supplies made ss-lviii[***] by:-- Respective headings
(a) manufacturers whose annual turnover from taxable supplies made in
any tax period during the last twelve months ending any tax period does not
exceed rupees ss-lix[five million]; and
(b) Retailers whose annual turnover from supplies, whether taxable or
otherwise, made in any tax period during the last twelve months ending any
tax period does not exceed rupees ss-lx[five] million.
ss-lxi
43. [Raw material and intermediary goods manufactured or produced, and Respective headings
services provided or rendered, by a registered person, consumed by himself
in the manufacture of goods subject to sales tax.]
44. Such plant and machinery as is notified by the Federal Government in the Respective headings
official Gazette ss-lxii[but if imported, these shall be entitled to exemption
from sales tax on importation if these are not manufactured in Pakistan].
45. Computer hardware including laptops, notebooks, PCs, main frame and Respective headings
their peripheral units and parts thereof.
ss-lxiv ss-lxv
46. Import of all such gifts as are received, and such equipment for fighting [ [99.12,99.13
tuberculosis, leprosy, AIDS and cancer and such equipment and apparatus and 99.14] (as
for the rehabilitation of the deaf, the blind, crippled or mentally retarded as applicable)]
are purchased or otherwise secured, by a charitable non-profit making
institution solely for the purpose of advancing declared objectives of such
institution, subject to the similar conditions as are envisaged for the
purposes of ss-lxiii[applying zero-rate of customs duty] under the Customs Act,
1969 (IV of 1969).

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 ss-lxvi ss-lxvii
[46A Goods imported by or donated to hospitals run by the Federal Government [99.12,99.14 and
or a Provincial Government; and non-profit making educational and 99.15]]
research institutions subject to the similar restrictions, limitations,
conditions and procedures as are envisaged for the purpose of applying
zero-rate of customs duty on such goods under the Customs Act, 1969 (IV of
1969).
ss-lxx
47. Import of all goods received, in the event of a natural disaster or other [99.07 ,99.08,
catastrophe, as gifts and relief consignments ss-lxviii[including goods imported 99.09 and 99.11]
for the President's Fund for Afghan Refugees, relief goods donated for
Afghan Refugees, gifts for President's Fund for Assistance of Palestine and
gifts received by Pakistani organizations from Church World Services or the
Catholic Relief Services], subject to the similar conditions as are envisaged
for the purposes of ss-lxix[applying zero-rate of customs duty] under the
Customs Act.
48. Computer software Respective headings
ss-lxxi ss-lxxii
49. [Tractors, bulldozers and combined harvesters]; and CKD kits thereof [Respective
imported by recognized local manufacturers as per their approved deletion headings.]
programme subject to the same conditions as are envisaged for the purposes
of exemption under the Customs Act.
50. Supply of other such agricultural implements as may be specified in a Respective headings
notification to be issued by the Federal Government in the official Gazette.
ss-lxxiii
[51 ***]
ss-lxxiv
[52 ***]
ss-lxxv
[53 Cattle feed ss-lxxvi[other than oil cake and its solid residues, whether or not ss-lxxvii
[Respective
ground or in the form of pellets] headings.]
ss-lxxviii
[54 *** ]
ss-lxxix
[55 *** ]
ss-lxxx
[56 Bricks and cement blocks. 6810.1100 and
6901.0000.]
ss-lxxxi
[57 *** ]
ss-lxxxii
[58 *** ]
ss-lxxxii ss-lxxxiv ss-lxxxvi
[59 [Artificial] kidneys, eye cornea, hemodialysis machines, hemo [99.24 and
dialyzers, A.V. fistula needles, hemodialysis fluids and powder, blood tubing99.25]
tines for dialysis and reverse osmosis plants for dialysis ss-lxxxv[double lumen
catheter for dialysis, catheter for renal failure patient and peritoneal dialysis
solution and angioplasty equipment (balloons, catheters, wires and stents)]
subject to the similar conditions and procedures as are envisaged for the
purpose of applying zero-rate of customs duty on these goods under the
Customs Act, 1969 (IV of 1969)
ss-lxxxvii
[60 Supply of fixed assets against which input tax adjustment is not available Respective headings
under a notification issued in terms of clause (b) of sub-section (I) of section
8 of the Sales Tax Act, 1990.
ss-lxxxviii
[interpretation.-For the purpose of exemption of sales tax under serial Nos. 11,26, 27,28,30,31,40,
40A, 46, 46A, 47 and 59 of this Schedule, the definitions, restrictions; limitation ,conditions and procedures and-all the
provisions of Chapter 99 of the First Schedule to Customs Act, 1969 (IV of 1969), for the purpose of applying zero-rate
of customs-duty, shall, mutatis mutandis apply and shall be deemed and construed to be part of this Schedule.]
[ss-i Substituted the words unprocessed foodstuff vide the Finance Act, 2003 (I of 2003), assented on 16th June,
2003]
[ss-ii The comma and word “, etc.” were omitted vide the Finance Act, 1999 (IV of 1999), assented on 29th June,
1999]
[ss-iii The brackets, words and comma were inserted by the Finance Ordinance, 2000 (XXI of 2000)]
[ss- iv Clause (iv) was substituted vide the Finance Ordinance, 2000 (XX! of 2000).] At the time of substitution
Clause (iv) was as under:--
“(iv) fresh and dried milk, yogurt, of all sorts, whether or not packed for retail sale;”
[ss-v Clause (iv) was substituted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003. At the time
of substitution Clause (iv) was as under:--
SS-va
[(iv) Fresh and dried milk; milk preparations obtained by replacing one or more of the constituents of
milk by another substance, whether or not packed for retail sale, falling under Heading No. 19.01
of the First Schedule to the Customs Act, 1969 (IV of 1969), including those consignments of such
milk preparations imported and released against bank guarantee since the 1st July, 2000, but

[150]
 excluding those consignments already cleared on payment of sales tax; plain yogurt excluding
packaged or sold under trade mark or brand name.]
[ss-va Entry (iv) was substituted vide the Finance Ordinance, 2001 (XXV of 2001) dated 18th June, 2001. At the time
of substitution entry (iv) was as under:--
“(iv) Fresh and dried milk, milk preparations obtained by replacing one of the constituents of milk by
another substance, whether or not packed for retail sale; plain yogurt excluding packaged or sold under
trade mark or brand name it.”
[ss-vi The comma and word “etc.” was omitted vide the Finance Act, 1999 (IV of 1999), assented on 29th June,
1999]
[ss-vii Clause (vii) was substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution
Clause (vii) was as under:-
“(vii) cooked viia[***] foodstuff, whether or not frozen, served by clubs, messes, restaurants, hotels and
other retail or wholesale outlets but excluding preserved, canned, bottled or packaged;”
[ss-viia The words “or baked” was omitted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-viii Clause (ix) was substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution
Clause (ix) was as under:-
“(ix) table salt including iodized salt;”
[ss-ix Clause (x) substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution Clause (x)
was as under:-
“(x) red chillies, ginger and turmeric; and”
[ss-x Clause (xi) was omitted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of omission Clause (xi)
was as under:-
“(xi) milk based food preparations of heading 19.01 of the First Schedule to the Customs Act, 1969 (IV
of 1969).”
[ss-xi Clause (xii) and the entry relating thereto was added vide the Tax Law (Amendments) Ordinance, 1999
promulgated on 17th December, 1999) (XXII of 1999)]
[ss-xii S. No. 3A inserted vide the Finance Ordinance, 2001 (XXV of 200I) dated 18th June, 2001]
[ss-xiii Substituted for the figure “0407.0020” vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on
15th June, 2002]
[ss-xiv Entry inserted vide the Finance Ordinance, 2000 (XXI of 2000)]
[ss-xv Entries and the entries relating thereto were omitted vide the Finance Act, 2003 (I of 2003), assented on 16th
June, 2003. At the time of omission entries was as under:--
“Soyabean. 12.01
Rape-seed. 12.05
Sunflower seeds. 12.06
Palm nuts and kernels. 1207.1000
Safflower seeds. 1207.6000
Canola seed } SS-xva[***] SS-xvb
[I2.05]”
[ss-xva The words “for sowing” were omitted vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on
15th June, 2002]
[ss-xvb Substituted for the figure” I207.9900” vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on
15th June, 2002]
[ss-xvi Substituted for the figure “1211.9020” vide the Finance Ordinance, 2002 (XXVII 01'2002) promulgated on
15th June, 2002]
[ss-xvii Substituted for the figure “1212.9200” vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on
15th June, 2002]
[ss-xviii Clause (a) and the entries relating thereto were omitted vide the Finance Act, 2004 (II of 2004), assented on
30th June, 2004). At the time of omission clause (a) was as under:--
“(a) used in the manufacture of cotton seed oil by the registered persons subject to such conditions as
the Board may specify; and”
[ss-xix S. NO.6 was substituted vide the Finance Ordinance, 2001 (XXV of 2001) dated 18th June, 2001 At the time of
substitution S. NO.6 was as under:--
xixa
[6. Edible oils (excluding import of palm oil and 15.07, 15.08, 15.11, 15.12, 15.13.15.14, 15. I 5
soyabean oil) and vegetable ghee; desi ghee derived and 04.05]”
from milk.
[ss-xixa S. No. 6 substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution S. No.6 was
as under:--
“6. Edible oils (excluding palm oil and soyabean oil) 15.08, 15.12. 15.13, 15.14, 15.15 and 04.05.”
and vegetable ghee; desi ghee derived from milk.

[151]
[ss-xx Substituted tor “Vegetable ghee; desi ghee derived from milk; butter not sold under brand name or trade
mark and supply of edible oils” vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June,
2002]
[ss-xxi The words were inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[ss-xxii The words were inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[ss-xxiii S. No. 6A was inserted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[ss-xxiv S. NO.7 was omitted vide the Finance Ordinance, 2000 (XXI of 2000).At the time of omission S. NO.7 was as
under:--
“7 Crude petroleum oil”
[ss-xxv S. No.8 was omitted vide the Finance Ordinance, 2001 (XXV of 2001) dated 18th June, 2001. At the time of
omission S. No.8 was as under:-
“8. POL products and LPG. 2710.0011,2710.0012,
2710.0019,2710.0031,
2710.0041,2710.0042,
2710.0043,2710.0049,
2710.0051,2710.0061,
2710.0071 and 27.11.”
[ss-xxvi S. Nos. 9 and 10 was omitted vide the Finance Ordinance, 2000 (XXI of 2000. At the time of omission S.
NO.9 and 10 were as under:-
“9 Natural gas, whether or not liquefied 27.11
10 Electrical energy 27.16”
[ss-xxvii The words were added vide the Finance Ordinance, 2001 (XXV of 200I), assented on 18th June, 2001]
[ss-xxviii Substituted for the entries “3006.6000,3926.9030 SS-xxviiia[,4014.1000 and 9908.0050]” vide the Finance
Ordinance, 2002 (XXVU of 2002) promulgated on 15th June, 2002]
[ss-xxviiia Substituted the word and figures “and 4014.1000” vide the Finance Ordinance, 2001 (XXV of 2001) made
on 18th June, 2001]
[ss-xxix S. No. 12 and the entries relating thereto were omitted vide the Sales Tax (Amendment) Ordinance, 2002
(XVI of 2002) dated 21st March, 2002. At the time of omission S. No. 12 was as under:-
ss-xxixa
[12. Medicaments classifiable under any of the Respective headings of headings of Chapter 30 of the
First Schedule to Chapter 30 the Customs Act, 1969 (IV of 1969), but excluding the following even if
medicated or medicinal in nature, namely:-
(a) filled infusion solution bags imported with or without infusion giving sets;
(b) Scrubs, detergents and washing preparations;
(c) soft soap or no-soap soap;
(d) adhesive plaster;
(e) surgical tapes;
(f) liquid parafin;
(g) Disinfectants;
(h) cosmetics and toilet preparations; and
(i) absorbent cotton wool.]
[ss-xxixa S. No. 12 was substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution S. No.
12 was as under:--
“12 Medicaments excluding the following:- Respective headings of Chapter 30.”
(a) Filled infusion solution bags imported with or without infusion giving sets.
(b) Scrub (washing preparation).
(c) Soft soap.
(d) Adhesive plaster.
(e) Surgical tapes.
(f) Liquid paraffin.
(g) Disinfectants.
(h) Medicated shampoos.
(i) Absorbent cotton wool.”
[ss-xxx S. No. 13 and the entries relating thereto were omitted vide the Sales Tax (Amendment) Ordinance, 2002
(XVI of 2002) dated 21st March, 2002. At the time of omission S. No. 13 was as under:-
ss-xxxa
[13. Substances registered as drugs under the Drugs Act, 1976 Respective headings of Chapter
(XXXI of 1976). Classifiable under any of headings of chapter 30 of the 30.]”
First Schedule to the Customs Act, 1969 (IV of 1969) but excluding the
following even if medicated or medicinal in nature. namely:-

[152]
 (a) filled infusion solution bags imported with or without infusion
giving sets;
(b) Scrubs. detergents and washing preparations:
(c) soft soap or non-Soap soap;
(d) adhesive plaster;
(e) Surgical tapes.
(f) Liquid paraffin.
(g) Disinfectants.
(h) cosmetics and toilet preparations: and
(i) absorbent cotton wool.

[ss-xxxa S. No. 13 was substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution S. No.
13 was as under:-
13. Substances registered as drugs under the Drugs Act, 1976 (XXXI Respective headings.”
of 1976). excluding the following:-
(a) Filled infusion solution bags imported with or without infusion
giving sets.
(b) Scrub (washing preparation).
(c) Soft soap.
(d) Adhesive plaster.
(e) Surgical tapes.
(f) Liquid paraffin.
(g) Disinfectants.
(h) Medicated shampoos.
(i) Absorbent Cotton wool.
[ss-xxxi S. No. 14 and the entries relating thereto was omitted vide the Sales Tax (Amendment) Ordinance, 2002 (XVI
of 2002) dated 21st March: 2002. At the time of omission S. No. 14 was as under:--
ss-xxxia
[14- Raw materials for basic manufacture of pharmaceutical Respective headings.”
'active Ingredients; but if imported. these shall be entitled to exemption
from tax' on importation only if also entitled to exemption from
payment of the whole or part of the' custom duty leviable thereon; and
also those raw materials for basic manufacture of pharmaceutical
active ingredients which SS-xxxib[attracted during the period from Ist
July, 1999 to 17th June, 2001] statutory custom duty @ 10%; but if
imported these shall be subject to similar conditions as are envisaged
for the raw materials entitled to exemption from payment of the whole
or part of the custom duty leviable thereon.
[ss-xxxia S. No. 14 was substituted vide the finance Ordinance, 2000 (XXI of 2000). At the time of substitution S. No.
14 was as under:-
14. Raw materials for basic manufacture of pharmaceutical active Respective headings.”
ingredients; xxxic[but if Imported. these shall be entitled to exemption
from tax on un portanon only if also entitled to exemption from
payment of the whole or part of the customs duty leviable thereon.]
[ss-xxxib Substituted the word “attract” vide the Finance Ordinance, 2001 (XXV of 2001 dated 18th June, 2001]
[ss-xxxic Substituted for the expression “if imported, this exemption will be subject to similar conditions as are
envisaged for the purposes of exemption under the Customs Act, 1969 (IV of 1969) vide the Finance Act,
1999 (IV of 1999), assented on 29th June, 199]
[ss-xxxii S. No. 15 and the entries relating thereto were omitted vide the Sales Tax (Amendment) Ordinance 2002
(XVI of 2002) dated 21st March, 2002). At the time of omission S. No. 15 was as under:--
SS-xxxiia
[15.Raw materials for manufacture of pharmaceutical product. Respective headings.”
but If Imported. these shall be entitled to exemption from tax on
importation only if also entitled to exemption from payment of the
whole or part of the customs duty leviable thereon and also those raw
materials for . the manufacture of pharmaceutical products which xxxii
xxxiib
[ attracted during the period from 1st July, 1999 to 17th June,
2001] statutory customs duty @ 10”10; but if imported, these shall be
subject to similar conditions as are envisaged for the raw materials
entitled to exemption from payment of the whole or part of custom
duty leviable thereon.
[ss-xxxiia S. No. 15 was substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of substitution S. No.
15 was as under:-

[153]
 “15. Raw materials for manufacture of pharmaceutical products; Respective headings.”
xxxiic
[but if imported, these shall be entitled to exemption from
tax on importation only if also entitled to exemption from
payment of the whole or part of the customs duty leviable
thereon.]
[ss-xxxiib Substituted the word -attract- vide the Finance Ordinance, 2001 (XXV of 200I) dated 18th June, 2001]
[ss-xxxiic Substituted for the expression-if imported, this exemption will be subject to similar conditions as are
envisaged for the purposes of exemption under the Customs Act, 1969 (IV of 1969) the Finance Act, 1999 (IV
of 1999), assented on 29th June, 1999]
[ss-xxxiii S. No. 16 was omitted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of omission S. No. 16 was
as under:-
“16. materials for manufacture of pharmaceutical products, Respective headings.”
including neutral glass tubings for the manufacture of vials
and ampules; ss-xxxiiia[but if imported, these shall be entitled to
exemption from tax on importation only if also entitled to
exemption from payment of. the whole or part of the customs
duty leviable thereon).
[ss-xxxiiia Substituted for the expression -if imported this exemption will be subject to similar conditions as
are envisaged for the purposes of exemption under the Customs Act, 1969 (IV of 1969) vide the Finance Act,
1999 (IV of 1999), assented on 29th June, 1999
[ss-xxxiv S. No. 17 was omitted vide the Sales (Third Amendment) Ordinance, 2001 (XLVIU of 2001) promulgated on
2nd September, 2001). At the time of omission S. No. 17 was as under:-
“17. ss-xxxiva[Fertilizers excluding urea fertilizers] ss-xxxivb
[Respective headings of Chapter 31.]
[ss-xxxiva. Substituted the word “Fertilizers” vide the Sales (Second Amendment) Ordinance, 2001 (XVII of 200I),
assented on 31st March, 2001]
[ss-xxxivb. The word and figure was inserted vide the Sales (Second Amendment) Ordinance, 2001 (XVII of 2001),
assented on 31st March ,200I]
[ss-xxxv S, No, 18 was omitted vide the Sales Tax (Second Amendment) Ordinance, 2001 (XVII of 2001) dated 31st
March, 2001. At the time of omission S. No. 18 was as under:--
“18 Insecticides, pesticides, fungicides and herbicides or 38.08.” we decides, for agricultural
purposes”
[ss-xxxvi. S. No. 19 was omitted vide the Sales Tax (Amendment) Ordinance, 2000 (XLII of 2000) dated 5th September,
2000). At the time of omission S. No. 19 was as under:--
ss-xxxvia
[19. Cement 25.23.]
[ss-xxxvia S. No. 19 was substituted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of
substitution S. No. 19 was as under:-
“19. Cement 45.23.”
[ss-xxxvii. Substituted for the comma vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[ss-xxxviii The words “and similar documents of title” was omitted vide the Finance Act, 2003 (I of 2003), assented on
16th June, 2003]
[ss-xxxix S. No. 26 was substituted vide the Finance Ordinance, 2001 (XXV of 2001) dated 18th June, 2001). At the time
of substitution S. No. 26 was as under:--
“26 Temporary import of goods for re-export, subject to similar conditions as are envisaged for the
purposes of exemption under the Customs Act, 1969, of the following:-
(a) Machinery and equipment for repair;
(b) Professional equipment imported by visiting technicians, doctors, etc.;
(c) Equipment and material imported by visiting television and broad-casting units, press
photographers and film companies;
(d) Scientific and educational instruments, apparatus and appliances including simultaneous
broad- casting equipment if imported for scientific, educational or cultural seminars to be
held in Pakistan;
(e) Goods imported by governmental or semi-governmental institutions for demonstration
purposes for their display centers;
(f) Goods imported for display at international or single country exhibition by foreign missions;
(g) Machinery imported by the representatives of foreign commercial firms for demonstration
purposes;
(h) Dry fruit temporarily imported from Afghanistan for subsequent exportation; and
(i) Containers meant and used for packing of goods for export by air, sea or land routes and
containers stuffed with imported goods if these containers are meant for re-export: or
otherwise.

[154]
[ss-xl Substituted for the entries “9906.0020, 9906.0030 and 9906.0040” vide the Finance Ordinance, 2002 XXVII
of 2002 promulgated on 15th June, 2002]
[ss-xli Substituted the word “exemption” vide the Finance of Ordinance, 200 I (XXV of 200I) made on 18th June,
200I]
[ss-xlii Substituted for the figure ss-xliia[9906.0010] vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated
on 15th June, 2002]
[ss-xliia Substituted the words “Respective headings” vide the Finance Ordinance, 200I (XXV of 200I), assented on
18th June, 200I]
[ss-xliii Substituted the word “exemption” vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June,
200I]
[ss-xliv Substituted for the figure ss-xliva[9904.0010] vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated
on 15th June, 2002]
[ss-xliva Substituted the words “Respective headings” vide the Finance Ordinance, 2001 (XXV of 200I), assented on
18th June, 200I]
[ss-xlv Substituted the words “Defence stores imported” vide the Finance Act, 1999 (IV of 1999), assented on 29th
June, 1999]
[ss-xlvi Substituted the words “and trucks” vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[ss-xlvii Substituted the word “exemption” by the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June,
2001]
[ss-xlviii Substituted for the figure ss-xlviiia[9902.0060] vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated
on 15th June, 2002]
[ss-xlviiiaSubstituted the words “Respective headings” vide the Finance Ordinance, 200I (XXV of 200I), assented on
18th June, 200I]
[ss-xlix The words “of no commercial value” were omitted vide the Finance Ordinance, 200I (XXV of 200I),
assented on 18th June, 2001]
[ss-l Substituted the word “exemption” vide the Finance Ordinance, 200I (XXV of 200I), assented on 18th June,
200I]
[ss-li Substituted for the figure ss-lia[9902.0070] vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated
on 15th June, 2002]
[ss-lia Substituted the words “Respective headings” vide the Finance Ordinance, 200 I (XXV of 200I), assented on
18th June, 200I]
[ss-lii S. No. 36A was inserted vide the Finance Ordinance, 2001 (XXV of 2001) dated 5th June, 200I]
[ss-liii The words, commas and figures were added vide the Finance Ordinance, 200I (XXV of 200I) dated 18th
June, 2001]
[ss-liv Substituted for the existing entries ss-liva[990 1.00I0, 9901.0020, 9901.0030, 9901.0040. 9901.0050,
9901.0060 and 9901.0080)” vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June,
2002]
[ss-liva Substituted the words “Respective headings” vide the Finance Ordinance, 2001 (XXV of 200I), assented on
18th June, 200I]
[ss-lv S. No. 40A was inserted vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June, 2001]
[ss-lvi Substituted 'for the figure “9901.0070” vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on
l5th June, 2002]
[ss-lvii Substituted for the figure “9901.0070” vide the Finance Ordinance, 2002 (XXVII of 2002) promulgated on
15th June, 2002]
[ss-lviii The words “in Pakistan” were omitted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[ss-lix Substituted the words ss-lixa[five] hundred thousand” vide the Finance Act, 2004 (II of 2004), assented on 30th
June, 2004 ]
[ss-lixa Substituted the word “three” vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lx Substituted the word lxa[one]” vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[ss-lxa Substituted the word “five” vide the Finance Act, 1999 (IV of 1999), assented on 29th June,1999]
[ss-lxi Entry was substituted vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004). At the time of
substitution entry was as under:--
ss-lxia
[Raw materials and intermediary goods or services if used by the sale tax registered manufacturer,
himself in the manufacture of goods subject to sales tax.]
[ss-lxia Entry was substituted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003. At the time of
substitution entry was as under:--
“Partly manufactured goods if used within the same factory to manufacture goods in respect of which sales
tax is leviable on their supply.”
[ss-lxii The words were inserted vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lxiii Substituted the word “exemption” vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June,
2001]

[155]
[ss-lxiv Substituted the words “Respective headings” vide the Finance Ordinance, 2001 (XXV of 2001), assented on
18th June, 2001]
[ss-lxv Substituted for the figures “9903.0010. 9903.0020 and 9903.0030” vide the Finance Ordinance, 2002 (XXVII
of 2002) promulgated on 15th June, 2002]
[ss-lxvi S No. 46A was added vide the Finance Ordinance, 200I (XXV of 200I) made on 18th June, 2001]
[ss-lxvii Substituted for the figure “9903.0010. 9903.0030 and 9903.0040” vide the Finance Ordinance, 2002 (XXVII
of 2002), promulgated on 15th June, 2002]
[ss-lxviii The words and commas inserted vide the Finance Ordinance, 200I (XXV of 200I) dated 18th June, 2001]
[ss-lxix Substituted the word “exemption” by the Finance Ordinance, 2001 (XXV of 2001) made on 18th June, 2001]
[ss-lxx Substituted for the figures lxxa[9902.0010, 9902.0020, 9902.0030, 9902.0040 and 9902.0050]” vide the
Finance Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002]
[ss-lxxa Substituted the words “Respective headings” vide the Finance Ordinance, 2001 (XXV of 2001) dated 18th
June, 2001]
[ss-lxxi Substituted the words “Supply of tractors, bulldozers and combined harvesters for agricultural purposes”
vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[ss-lxxii Substituted for the figures “84:29, 8433.5100, 8701.9019 and 8701.9012” vide the Finance Ordinance, 2002
(XXVII of 2002) promulgated on 15th June, 2002]
[ss-lxxiii S. No. 51 was omitted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of omission S. No. 51 was
as under:-
ss-lxxiiia
[51. One bus in CBU condition, meant for transportation 87.02]” of passengers imported by a person
under NRI scheme.]
[ss-lxxiiia S. No. 51 was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lxxiv S. No. 52 was omitted vide the Tax Law (Amendments) Ordinance, 1999 (XXII of 1999) promulgated on 17th
December, 1999). At the time of omission S. No. 52 was as under:--
ss-lxxiva
[52. Imported motor vehicles meant for transportation of 87.03] persons which pay custom duty in
foreign exchange”
[ss-lxxiva S. No. 52 was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lxxv S. No. 53 was substituted vide the Finance Ordinance 2000 (XXI of 2000). At the time of substitution S. No.
53 was as under:--
ss-lxxva
[53 Cattlefeed. 2309.9000]
[ss-lxxva S. No. 53 was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lxxvi The words and comma was added vide the Finance Act, 2004 (II of 2004), assented on 30th June, 2004]
[ss-lxxvii Substituted for the figures ss-lxxviia[2302.1000, 2306.1000,2306.7000 & 2309.9000] vide the Finance
Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002]
[ss-lxxviia Substituted for “2306.1000, 2309.9000” vide the Sales Tax (Amendment) Ordinance, 2000 (XLII
of 2000) dated 5th September, 2000]
[ss-lxxviii S. No. 54 omitted vide the Sales Tax (Third Amendment) Ordinance, 2001 (XLVIII of 2001) promulgated on
2nd September, 2001). At the time of omission S. No. 54 was as under:--
ss-lxxviiia
[54. Fertilizer grade phosphatic rocks, and phosphoric acid 2809.2000, 25.10]
imported by recognized fertilizer factories for use in the
manufacture of phosphatic fertilizers including the phosphoric
acid imported by FFC and cleared provisionally without
payment of sales tax during 1998-99.
[ss-lxxviii S. No. 54 was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lxxix S. No. 55 was omitted vide Sales Tax (Second Amendment) Ordinance, 2001 (XVII of 2001) dated 31st March,
200I .At the time of omission S. No. 55 was as under:--
ss-lxxixa
[54. a inputs, as are not manufactured in Pakistan, imported by 2903.6900, 2916.2000,
recognized manufacturers of agricultural pesticides and 2917.3900, 29.19, 29.20,
used in the local manufacture of agricultural pesticides. 2923.9000, 2924.1000,
2926.9000, 2930.2000,
2930.9090, 2932.1900 and
2933.9000]”
[ss-lxxixa S. No. 55 was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss- lxxx S. No. 56 was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lxxxi S. No. 57 was omitted vide the Finance Ordinance, 2000 (XXI of 2000). At the time of omission S. No. 57 was
as under:-
ss-lxxxia
[57 Supply of CNG kits for automotive vehicles. Respective heading]
[ss-lxxxia S. No. 57 was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lxxxii. Sr. No. 58 and the entries relating thereto were omitted vide the Finance Act, 2003 (I of 2003) assented on
16th June, 2003. At the time of omission Sr. No. 58 was as under:--

[156]
 ss-lxxxiia
[58. Imported machinery and equipment, specified in Table- Respective headings.]
Ill of section 18 of the Finance Act, 1999, provided that
no Customs duty is levied thereon under the said
section 18 of the Finance Act, 1999.
[ss-lxxxii.a S. No. 58 was added vide the Finance Act, 1999 (IV of 1999), assented on 29th June, 1999]
[ss-lxxxiii S. No. 59 was added vide the Finance Ordinance, 2001 (XXV of2001), assented on 18th June, 2001]
[ss-lxxxiv Substituted the words “Import of artificial” vide the Finance Act, 2003 (I of 2003), assented on 16th June,
2003]
[ss-lxxxv The words and commas were inserted vide the Finance Act, 2003 (I of 2003), assented on 16th June, 2003]
[ss-lxxxvi Substituted the words and figures “9908.0040 (where applicable) and 9908.0060” vide the Finance
Ordinance, 2002 (XXVII of 2002) promulgated on 15th June, 2002]
[ss-lxxxvii Sr. No. 60 and the entries relating thereto was added vide the Finance Act, 2003 (I of 2003), assented on
16th June, 2003]
[ss-lxxxviii Interpretation was added vide the Finance Ordinance, 2001 (XXV of 2001), assented on 18th June, 200I]
The Sixth Schedule substituted vide Finance Act, 1998 (III of 1998). Earlier it was added vide the Finance Act, 1996
(IX of 1996). At the time of substitution it was as under:--
The
SIXTH SCHEDULE
[See section 13]

Serial No. Description Heading Nos. of the First Schedule

to the Customs Act, 1969
(IV of 1969).
(1) (2) (3)
1. Live animals. Respective headings of Chapter
2. Agricultural produce, of Pakistan, not subjected to any Respective Respective headings
headings further process of manufacture.
3. Unprocessed foodstuff for human consumption which shall,
mean:--
---- milled, hulled, polished, cellophane packed for retail sale,
etc.;
---- all vegetables, fruits and fruit juices whether fresh, frozen or
otherwise preserved [e.g., in “cold storage”] but excluding fruits,
fruit juices and vegetables bottled, canned or packaged;
---- all eggs, poultry and meats of bovine animals, fish and
crustaceans, whether or not fresh, frozen or otherwise preserved
but excluding canned or packaged;
---- fresh and dried milk, yogurt, of all sorts, whether or not
packed for retail sale.
---- Cream, whey and cheese, excluding packaged and sold under
brand names.
---- breads prepared in tandoors and bakeries, vermacellies, nans,
chapatties, sheermals, bun, rusk, etc.
---- cooked or baked foodstuff, whether or not frozen, served by
clubs, messes, restaurants, hotels and other retail or wholesale
outlets but excluding preserved, canned, bottled or packaged.
---- ice and water but excluding for sale under brand names;
---- table salt including iodized salt; and
---- red chillies, ginger and turmeric.
4. Edible oils and vegetable ghee and their raw materials excluding 15.07,15.08,15.11,15.12,15.13,15.14,
packing materials and containers; desi ghee derived from milk. 15.15,04.05.
ss-lxxxix
[5. *** ]
6. Crude petroleum oil. 27.09
7. POL products and LPG. 2710.0011,2710.0012, 2710.0019,
2710.0031.2710.0041, 2710.0042,
2710.0043, 2710.0049, 2710.0051,
2710.0061,2710.0071, 27.11.
8. Natural gas whether or not liquefied. 27.11
9. Electrical energy 27.16
10. Contraceptives. 3006.6000.3926.9030, 4014.1000

[157]
11. Fertilizers. Chapter 31.
12. Fertilizers. 38.3
13. Holy Quran”, complete or in parts, with or without translation; 49.01.8524
audio and video cassettes recorded with Quranic verses ss-xc[:
other Holy books].
14. Currency notes, bank notes, shares, stocks, bonds and similar 49.07
documents of title.
15. Silver and gold, in un-worked condition; monetary gold. 71.06, 71.08
16. Goods produced or manufactured in and exported from Pakistan Respective headings
which are subsequently imported in Pakistan within one year of
their exportation, provided conditions of section 22 of the
Customs Act are complied with.
17. Temporary import of goods for re-export' subject to similar Respective headings
conditions as are envisaged for the purposes of Customs Act, of
the following:--
(i) Machinery and equipment for repair.
(ii) Professional equipment imported by visiting technicians,
doctors, etc.
(iii) Equipment and material imported by visiting television and
broad-casting units, press photographers and film
companies.
(iv) Scientific and educational instruments, apparatus and
appliances including simultaneous broad-casting equipment
if imported for scientific, educational or cultural seminars to
be held in Pakistan.
(v) Goods imported by governmental or semi governmental
institutions for demonstration purposes for their display
centres
(vi) Goods imported for display at international or single
country exhibition by foreign missions
(vii) Machinery imported by the representatives of foreign
commercial firms for demonstration purposes.
(viii) Dry fruit temporarily imported from Afghanistan for
subsequent exportation.
ss-xci
[(ix) Containers meant and used for packing of goods for
export by air, sea or land routes; and containers stuffed with
imported goods if these containers are meant for re-export,
or otherwise.]
18. Re-importation of foreign origin goods which were temporarily Respective headings
exported out of Pakistan subject to the similar conditions as are
envisaged for the purposes of Customs Act.
19. Import of replacement goods supplied free of cost in lieu of Respective headings
defective goods imported, subject to the similar conditions as are
envisaged for the purposes of Customs Act. .
20. Defence stores imported by Federal Government against foreign Respective headings
exchange allocation for defence; defence stores supplied by
manufacturers under Defence Production Division ss-xcii[and
trucks, their parts: and accessories assembled or manufactured by
local manufacturers for supply to Armed Forces].
21. Articles imported through post as unsolicited gifts, subject to the Respective headings
same conditions as are envisaged for the purposes of Customs Act
22. Imported samples of no commercial value, subject to the same Respective headings
conditions as are envisaged for the purposes of Customs Act.
23. Educational, scientific and cultural material imported from a Respective headings
country signatory to UNESCO Agreement or a country signatory
to bilateral commodity exchange agreement with Pakistan, subject
to the same conditions as are envisaged for the purposes of
Customs Act.

[158]
24. Personal wearing apparel and bona-fide baggage imported by Respective headings
overseas Pakistanis and tourists, if imported under various
baggage rules and is exempt from Customs duties.
25. Ship which is neither; Respective headings
(a) a ship of gross tonnage of less than 15 LDT; nor
(b) a ship designed or adapted for use for recreation or
pleasure.
26. Air-craft which is neither; Respective headings
(a) an aircraft of unladen weight of less than 8000 kilograms;
nor
(b) an aircraft designed or adapted for use for recreation or
pleasure.
27. Spare parts and equipment for ships and air-crafts covered by 25 Respective headings
and 26 above.
28. Equipment and machinery for pilotage, salvage or towage for use Respective headings
in ports or air-ports.
29. Equipment and machinery for air navigation Respective headings
30. Equipment and machinery used for services provided for handling Respective headings
of ships or air-crafts in a Customs port or Customs air port.
31. Goods imported by diplomats, diplomatic missions, privile ged Respective headings
persons and privileged organizations which are covered under
various Acts, Orders, Rules, Regulations and Agreements passed
by the Parliament or issued or agreed to by the Government of
Pakistan.
ss-xciii
32. [Goods imported or supplied under grants-in-aid for which a Respective headings
specific consent has been obtained from the Central Board of
Revenue; supplies and imports under agreements signed by the
Government of Pakistan before the 30th June, 1996, provided the
agreements contained the provision for exemption of tax at the
time of signing of agreement.]
ss-xciv
33. [Supplies made in Pakistan except the following:- Respective headings
(i) by manufacturers;
(ii) by such retailers, from such date and subject to such
conditions as the Federal Government may specify by a
notification in the Official Gazette;
(iii) by distributors, wholesalers, or retailers of Mild Steel
products and such of their raw materials as the Federal
Government may, by notification” in the Official Gazette,
specify;
(iv) by ship-breakers;
(v) by importers.
(vi) by such persons and of such goods as the Federal
Government may, by notification in the Official Gazette,
specify.]
34. Partly manufactured goods if used within the same factory to Respective headings
manufacture goods in respect of which sales tax is leviable on
their supply.

[159]
 35. The following agricultural produce on their import into Pakistan:-
- 06.01
Bulbs, tubers, etc. 070J.1000,
Potatoes 0701.9000
Onions and shallots. 0703.1000
Garlic. 0703.2000
Dried leguminous, Vegetables, shelled, whether or not skinned or 07.13
split. 0904.2000
Red chillies. Respective headings
Live plants and seeds of vegetables, fruits and flower. 10.01
Wheat. 10.04
Oats. 1005.1000
Com seeds. 1007.0000
Grain sorghum seeds.
Millet seeds. 1008.2000
Soya bean. 12.01
Sun flower seeds. 12.06
Palm nuts and kernels. 1207.1000
Safflower seeds. 1207.6000
Seeds, fruit and spores for sowing. 12.09
Cinchona bark. 1211.9020
Sugar beet. 1212.9100
Sugar cane. 1212.9200
ss-xcv
[36. Medicaments excluding the following:-- Respective headings of Chapter 30.
(i) Filled infusion solution bags imported with or without
infusion giving sets.
(ii) Scrub (washing preparation)
(iii) Soft soap
(iv) Adhesive plaster
(v) Surgical tapes
(vi) Liquid paraffin
(vii) Disinfectants
(viii) Medicated shampoos
(ix) Absorbent cotton wool
37. Substances registered as drugs under the Drugs Act, 1976 (XXXI Respective headings
of 1976), excluding the following:--
(i) Filled infusion solution bags imported with or without
infusion giving sets.
(ii) Scrub (washing preparation).
(iii) Soft soap.
(iv) Adhesive plaster.
(v) Surgical tapes
(vi) Liquid paraffin
(vii) Disinfectants
(viii) Medicated shampoos
(ix) Absorbent cotton wool.
38. Newspaper 49.02
39. Plant and machinery of the description ss-xcvi[notified] by the Respective headings ]
Federal Government in the official Gazette.
ss-xcvii
[40 Supply of Cotton seed which is 1207.2000
(i) used in the manufacture of cotton seed oil by the registered
persons subject to such conditions as the Board may specify;
and
(ii) exclusively meant for sowing purposes, subject to such
conditions as the Board may specify.
41. Cement. 25.23
42. Raw materials for basic manufacture of pharmaceutical active Respective headings
ingredients; if imported these will be subject to similar conditions
as are envisaged for the purposes of the Customs Act, 196~ (IV of
1969).

[160]
 [See section 13(1)]
TABLE-l
(IMPORTS OR SUPPLIES)

Serial Description Heading Nos. of the First

No. Schedule to the Customs

43. Raw materials for manufacture of pharmaceutical products; if Respective headings

imported these will be subject to similar conditions as are
envisaged for the purposes of Customs Act, 1969 (IV of 1969)
44. Packing materials for manufacture of pharmaceutical products, Respective headings
including neutral glass tubing’s for the manufacture of vials and
ampoules; if imported these will be subject to similar conditions
as are envisaged for the purposes of Customs Act, 1969 (IV of
\969).
45. Computer hardware including lap tops, notebooks, PCs, main Respective headings
frame and their peripheral units and parts thereof.
46. Poultry feed and its ingredients. Respective headings
47. Import of all such gifts as are received, and such equipment for Respective headings
fighting tuberculosis, leprosy, AIDS and cancer and such
equipment and apparatus for the rehabilitation of the deaf, the
blind, crippled or mentally retarded as are purchased or
otherwise secured, by a charitable non-profit making institution
solely for the purpose of advancing declared objectives of such
institution, subject to the similar conditions as are envisaged for
the purposes of Customs Act, 1969 (IV of 1969).
48. Import of all goods received, in the event of a natural disaster or Respective headings
other catastrophe, as gifts and relief consignments subject to the
similar conditions as are envisaged for the purposes of Customs
Act.
49. Baggage produced in a factory during the process of sugar 2303.2000
manufacture, if used in-house as fuel.
50. Supplies made by manufacturers whose turn over does not exceed Respective headings
three hundred thousand rupees in any period during the last
twelve months.
51. Computer software Respective headings
52. Books. journals and periodicals excluding directories of all sorts. 49.01, 49.02 and 49.03]
[ss-lxxxix Sr. NO. 5 omitted by Sales Tax (Amendment) Ordinance, 1998 (IV of 1998). At the time or of omission Sr.
NO.5 was as under:-
“5 Cane sugar, beet sugar”
[ss-xc The semi colon and the words was added vide the Finance Supplementary (Amendment) Act, 1997 (IV of
1997). Earlier it was added vide the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of 1996) effective
from . 2nd November, 1996; and again it was added vide the Sales Tax (Amendment) Ordinance, 1997
(XXXIX of 1997)
[ss-xci Item (ix) was added vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997). Earlier it was
added vide the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of 1996), effective from 2nd November,
1996 and again it was added vide the Sales Tax (Amendment) Ordinance, 1997 (XXXIX of 1997)
[ss-xcii The words added by the Finance Supplementary (Amendment) Act, 1997 (IV of 1997)]
[ss-xciii Entry in column (2) against S. No. 32 was substituted vide the Finance Supplementary (Amendment) Act,
1997 (IV of 1997). This entry at the time of substitution was as under:-
“Imports under grants-in-aid for which a specific consent has been obtained from the Central Board of
Revenue; end imports under agreements signed by the Government of Pakistan before 31.12.1995:”
[ss-xciv Entry in column No. (2) against S. No. 33 was substituted vide the Finance Act, 1997 (XXII of 1997). This
entry at the time of substitution was as under:--
“Supplies made in Pakistan except those made by manufacturers.”
[ss-xcv S. Nos. 36,37,38 & 39 added by the Finance Supplementary (Amendment) Act, 1997 (IV of 1997). Earlier S.
Nos. 36,37 & 38 were added vide the Sales Tax (Third Amendment) Ordinance, 1996 (CXX1 of 1996)
effective from 29th December, 1996.
[ss-xcvi Relevant Notification is S.R.O. 230(1)/97]
[ss-xcvii S. Nos. 40 to 52 was added vide the Finance Act, 1997 (XXII of 1997)]

[161]
 Act, 1969
(IV of 1969)
(1) (2) (3)
930
[*** *** ***]
931
[*** *** ***]
932
[*** *** ***]
933
[ ***
***
***
***
***
***
***
934
[*** *** ***]
935
[*** *** ***]
936
[*** *** ***]

930 Sr. No. 1 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission S. No. 1 was as under:
“1. Live Animals and live poultry 0101.2100, 0101.3000, 0101. 9000, 0102.2110, 0102. 2120, 0102.2130,
0102.2190, 0102.3900, 0102.2910, 01 02.2920, 0102.2930, 0102.2990,
0102.9000, 0104.1000, 0104.20 00, 0105.1100, 0105.1200, 0105.9400,
0105.9900, 0106.1100, 0106.1200, 0106.1900, 0106.2000, 0106.3110,
0106.3190, 0106.3200. 0106. 3900 and 0106.9000”
931 Sr. No. 2 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission S. No. 2 was as under:
“2. Meat of bovine animals, sheep and goat, excluding poultry and offal, 02.01, 02.02 and 02.04.
whether or not fresh, frozen or otherwise, preserved or packed
932 Sr. No. 3 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission S. No. 3 was as under:
“3. Fish and crustaceans excluding live fish whether or not fresh, frozen or 03.02,03.03, 03.04,03.05 &
otherwise preserved or packed 03.06”
933 Sr. Nos. 4 to 10 and the entries relating thereto emitted (effective from 6th June, 2006) vide the Finance Act, 2006 (Ill
of 2006), assented on 30th June, 2006). At the time of omission Sr. Nos. 4 to 10 were as under--
4. Fresh, liquid and dried milk without addition of sugar or any other 0401.1000, 0401.2000, 0401.3000,
sweetening matter whether packed or not. 0402.1000, 0402.2100 and 0402.
9100.
5. Cream excluding those packaged and sold under brand name or 0401.1000, 0401.2000, 401.3000,
trademark. 402.1000, 0402.2100, 0402.2900,
6. Plain yogurt excluding packaged or sold under trademark or brand 0403.1000
name.
7. Whey excluding packaged or sold under brand names or 0404.1010 and 0404.1090
trademarks
8. Butter not sold under brand name or trademarks. 0405.1000
9. Desi ghee derived from milk. 0405.9000
10. Cheese excluding packaged or sold under brand names or 0406.1010, 0406.2000, 0406. 0406.
trademarks. 4000 and 0406.9000”

934 Sr. No. 11 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 11 was as under:
“11. Eggs including eggs for hatching. 0407.1100, 0407.1900 and 0407.2100, 0407.2900”
935 Sr. No. 12 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 12 was as under:
“12. Live plants including bulbs, roots and the like 0601.1010, 0601.1090, 0601.2000, 0602.1000, 0602.2000,
0602.3000, 0602.4000, 0602.9010 and 0602.9090

[162]
 14. Pulses. 0713.1000, 937[0713.2010,
0713.2020, 0713.2090,]
0713.3100, 0713.3200,
0713.3300, 0713.3910,
0713.3920, 0713.3990,
0713.4010, 0713.4020,
0713.5000, 0713.9010,
0713.9020 and 0713.9090
938
[*** *** ***]
16. Red chillies excluding those sold 939[under] brand names and 940[0904.2110] and
941
trademarks. [0904.2210]
17. Ginger excluding those sold 942[under] brand names and trademarks. 943
[09.10]
944
18. Turmeric excluding those sold [under] brand names and trademarks. 0910.3000
945
[19. Rice, wheat, wheat and meslin flour Respective heading.]
946
[*** *** ***]

936 Sr. No. 13 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 13
was as under:
“13. Edible vegetables imported from Afghanistan including 0701.1000, 0702.0000, 0703.2000, 0703.9000,
roots and tubers except ware potato and onions, whether 0704.1000, 0704.2000, 0704.9000, 0705.1100,
fresh, frozen or otherwise preserved (e.g. in cold storage) 0705.1900, 0705.2100, 0705.2900, 0706.1000,
but excluding those bottled or canned. 0706.9000, 0707.0000, 0708.1000, 0708.2000,
0708.9000, 0709. 1000, 0709.2000, 709.3000,
0709.4000, 0709.5100. 0709.6000, 0709.7000,
0709.9000, 0710.1000, 0710.2100, 0710.2200,
0710.2900, 0710.3000, 0710.4000, 0710.8000,
0710.9000, 0712.2000, 0712.3100, 0712.3200,
0712.3300, 0712. 3900 and 0712.9000”
937 Substituted for the figure and comma “0713.2000,” vide the Finance Act, 2009 (I of 2009), assented on 30th June, 2009
938 Sr. No. 15 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 15
was as under:
“15. Fruit imported from Afghanistan excluding 0804.1010, 0804.1020, 0804.2000, 0804.3000, 0804.4000,
apples PCT 0808.1000 0804.5010, 0804.5020, 0804.5030, 0805.1000, 0805.2910,
0805.2100, 0805.2200, 0805.2990, 0805.4000, 0805.5000,
0805.9000, 0806.1000, 0806.2000, 0807.1100, 0807.1900,
0807.2000, 0808.3000, 0808.4000, 0809.1000, 0809.2000,
0809.3000, 0809.4000, 0810.1000, 0810.2000, 0810.4000,
0810.5000, 0810.6000, 0810.9010, 0810.9090, 0811.1000,
0811.2000, 0811.9000, 0813.1000, 0813.2000, 0813.3000,
0813.4010, 0813.4020 and 0813.4090]”
939 Substituted the words “in retail packing bearing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
940 Substituted for PCT heading “0904.2010” vide the Finance Act, 2012 effective from 2nd June, 2012.
941 Substituted for PCT heading “0904.2020” vide the Finance Act, 2012 effective from 2nd June, 2012
942 Substituted the words “in retail packing bearing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
943 Substituted for the figure “0910.1000” vide the Finance Act, 2017 assented on 19th June, 2017
944 Substituted the words “in retail packing bearing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
945 Sr. No. 19 was substituted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
At the time of substitution Sr. No. 19 was as under:
“19. Excluding the products of milling industry, 1001.1000, 1001.9000, 1002.0000, 1003.0000, 1004.0000,
other than wheat and meslin flour, as sold in 1005.1000, 100 5.9000, 1006.1090, 1006.2000, 1006.3010,
retail packing bearing brand name or a 1006.3090, 1006.4000, 1007.0000, 1008.1000, 1008.2000,
trademark. 1008.3000, 1008.9000, 1101.0010, 1101.0020, 1102.2000,
1102.9000, 1103.1100, 1103.1300, 1103.1900 1104.2200,
1104.2300, 1104.2900 and 1104.3000”
946 Sr. No. 20 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 20 was as under:

[163]
947
[*** *** ***]
948
[*** *** ***]
949
[*** *** ***]
950
[*** *** ***]
951
[ *** *** ]
952
[*** *** ***]
953
[*** *** ***]
954
[*** *** ***]
955
[*** *** ***]

“20. Seeds, fruit and spores of a kind used for sowing.

1006.1010, 1209.2100, 1209.2200, 1209.2300, 1209.24
00, 1209.2500, 1209.2900. 1209.3000, 1209.9110,
1209.9120, 1209. 9130, 1209.9190 and 1209.9900”
947 Sr. No. 21 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 21 was as under:
“21. Cinchona bark. 1211.9000”
948 Sr. No. 22 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
22 was as under:-
“22. Sugar beet. 1212.9100”
949 Sr. No. 23 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 23 was as under:
“23. Sugar cane. 1212.9300”
950 Sr. No. 24 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
24 was as under:-
“24. Edible oils and vegetable ghee, including cooking oil, on which 1507.9000, 1508.9000, 1509.1000, 1509.9000,
Federal Excise Duty is charged, levied and collected by a 1510.0000, 1511.1000, 1511.9020, 1511.9030,
registered manufacturer or importer as if it were a tax payable 1512.1900, 1513.1900, 1513.2900, 1514.1900,
under section 3 of the Act. 1514.9900, 1515.2900, 1515.5000, 1516.2010.
Explanation, -- Exemption of this entry shall not be available 1516.2020, 1517.1000, 1517.9000 and 1518.
on local supplies made by importers,] distributors, wholesalers 0000
or retailers.
951 Serial number 25 in column (1) and the entries relating thereto in columns (2) and (3) were omitted vide the Finance
Act, 2013 (XXII of 2013)], assented on 29th June, 2013. At the time of omission Serial number 25 was as under:--
25 Milk preparations obtained by replacing one or more of the ss-xcviii[1901.1000, 1901.9020
constituents of milk by another substance, whether or not packed for and 1901.9090]
retail sale.
[ss-xcviii Substituted for the figure “19.01” effective from 10th June, 2007 vide the Finance Act, 2007 (IV of 2007),
assented on 30th June, 2007 read with declaration made with Finance Bill, 2007
952 Sr. No. 26 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
26 was as under:-
“26. Fruit juices, whether fresh, frozen or otherwise preserved but 2009.1100, 2009.1200, 2009.1900, 2009.2100,
excluding those bottled, canned or packaged. 2009.2900, 2009.3100, 2009.3900, 2009.4100,
2009.4900, 2009.5000, 2009.6100, 2009.6900,
2009.7100, 2009.7900, and 2009.9000
953 Sr. No. 27 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
27 was as under:-
“27. Ice and waters excluding those for sale under brand names or 2201.1010
trademarks.
954 Serial number 28 in column (1) and the entries relating thereto in columns (2) and (3) were omitted vide Finance Act,
2015. At the time of omission Serial number 28 was as under:--
28 Poultry feed and Cattle feed including their all ingredients except soya bean 2301.2090, 2305.0000, 2306.2000,
meal of PCT heading 2304.0000 and oil- cake of cottonseed falling under 2306.3000, 2306.4100, 2306.5000,
PCT heading 2306.1000. 2309.9010, 2309.9020, 2309.9090,
2936.2100, 2936.2200, 2936.2300,
2936.2400, 2936.2500, 2936.2600,
2936.2700 and 2936.2800

[164]
 956
[ *** ]
*** ]
957
[*** *** ***]
958
[ *** ]
31. Holy Quran, complete or in parts, with or without translation; 959[4901.9910, 8523.2100,
Quranic Verses recorded on any analogue or digital media; other 8523.2910, 8523.2990,
960
Holy books. [8523.4910],
961
[8523.4920],
962
[8523.4190], 963[***],
8523.5910, 8523.5990,
8523.8010, 85 23.8020,
and 8523.8090]
964
[32. Newsprint and books but excluding brochures, leaflets and Respective headings.]
directories
965
33. Currency notes, bank notes, shares, stocks and bonds [49.07]
966
[ *** ]
967
[ *** ]

955 Sr. No. 29 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
29 was as under:-
“29. Table salt including iodized salt excluding salt sold in retail 2501.0010
packing bearing brand names and trademarks.
956 S. Nos. 29A & 29B was omitted vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011. Before omission
S. Nos. 29A & 29B were as under:-
ss-xcix
[29A Surgical tapes 30.05
29B Ultrasound gel 3006.7000
[ss-xcix. S. Nos. 29A & 29B was inserted (effective from 10th June, 2007) vide the Finance Act, 2007 (IV of 2007)
asserted on 30th June, 2007), read with declaration made with Finance Bill, 2007]
957 Sr. No. 29C was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 29C was as under:-
“29C. Glass bangles 7020.0090
958 S. No. 30 was omitted vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011. Before omission S. No. 30
was as under:-
ss-c
[30 Diapers for adults (patients) 4818.4010)]
[ss-c S. No. 30 substituted (effective from . 10th June, 2007) vide the Finance Act, 2007 (IV of 2007), assented on
30th June, 2007), read with declaration made with Finance Bill, 2007, At the time of substitution entry was as
under:-
“30 Adult diapers used for in continue 4818.9000”
959 Substituted the words and figures “4901.9910 and respective beadings of 85.24” (effective from 10th June, 2007) vide
the Finance Act, 2007 (IV of 2007)' assented on 30th June, 2007) read with declaration made with finance Bill. 2007.
960 Substituted for PCT heading “8523.4010” vide the Finance Act, 2012 effective from 2nd June, 2012
961 Substituted for PCT heading “8523.4030” vide the Finance Act, 2012 effective from 2nd June, 2012
962 Substituted for PCT heading “8523.4090” vide the Finance Act, 2012 effective from 2nd June, 2012
963 Omitted the figure “8523.5100 & 8523.5200”vide the Finance Act, 2017 assented on 19th June, 2017
964 Serial No. 32 was substituted vide the Finance Act, 2022 dated on 30th June, 2022. At the time of substitution Serial
No. 32 was as under:-
i[32. Newsprint and educational text books but excluding brochures, leaflets 4801.0000, 4901.9100, 4901.9990
and directories and 4903.0000.]
i Sr. No. 32 was substituted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th
January, 2022. At the time of substitution Sr. No. 32 was as under:
“32. Newsprint, newspapers], journals, 4801.0000, 4901.9100, 4901.9990, 4902.1000, 4902.9000 and
periodicals, books but excluding directories. 4903.0000”

965 Substituted the figure “4907.0000”vide the Finance Act, 2017 assented on 19th June, 2017
966 Sr. No. 34 was omitted vide the Finance Act, 2011 (XVI of 2011) assented on 29th June, 2011). Before omission Sr. No.
34 was as under:--
“34 Bricks 6901.0000”

[165]
968
[*** *** ***
*** *** ***]
969
38. Monetary gold. [7108.1390] 970[and
7108.20 90]
971
[*** *** ***]
972
[ *** ]
973
[ *** ]
974
[ *** ]
975
[ *** ]
976
[ *** ]

967 Sr. No. 35 was omitted vide the Finance Act, 2011 (XVI of 2011) assented on 29ih June, 2011. Before omission Sr. No.
35 was as under:--
ss-ci
“35 [Building blocks of cement ss-cii[including ready mix concrete blocks]]. 6810.1100”
[ss-ci Substituted the words “Cement Blocks.” (effective from 10th June, 2007) vide the Finance Act, 2007 (IV of
2007), assented on 30th June, 2007 with declaration made with Finance Bill, 2007.
[ss-cii The words added by the Finance Act, 2008 (I of 2008), assented on 26th June, 2008)]
968 Serial No. 36 and 37 was omitted vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of
omission Serial No. 36 and 37 was as under:-
“36 Silver, in un worked condition. 7106.1000, 7106.9110 and 7106. 9190
37. Gold, in un worked condition. 7108.1100. 7108.1210 and 7108.1290”
969 Substituted the figure “7108.2000”vide the Finance Act, 2017 assented on 19th June, 2017
970 The word, figures added effective from 10th June, 2007) vide the Finance Act, 2007 (IV of 2007), assented on 30th June,
2007 read with declaration made with Finance Bill. 2007.
971 Serial number 39 in column (1) and the entries relating thereto in columns (2) and (3) were omitted vide Finance Act,
2015. At the time of omission Serial number 39 was as under:--
39. Incinerators of disposal of waste management, motorized sweepers and 8417.8000, 8430.2000 and
snow ploughs. 8479.8990
971 Sr. No. 40 and the entries relating thereto were omitted effective from 6th June, 2006 vide the Finance Act, 2006 (III of
2006), assented on 30th June, 2006).read with Declaration made with Finance Bill, 2006 under the Provisional
Collection of Taxes Act, 1931. At the time of omission Sr. No. 40 was as under:-
“40. Computer hardware including laptops. Note 8471.1000, 8471.3010, 8471.3020, 8471.3090, 8471A110,
books, PCs mainframe and other peripheral units 8471.4190, 8471.4910, 8471.4990, 8471.5000, 8471.6010.
and parts thereof. 8471.6020, 8471.6030, 8471.6040, 8471.6050, 8471.6061,
8471.6069, 8471.6071, 8471.6079, 8471.6080, 8471.6090,
8471.7010, 8471.7020, 8471.7030, 8471.7040, 8471.7050,
8471.7090, 8471.8010. 8471.8020, 8471.8030 ,8471.8040,
8471.8050, 8471.8060, 8471.8090, 8471.9010, 8471.9020,
8471.9090, 8473.3010, 8473.3020, 8473.3030 and 8473.3090”
973 S. No. 41 omitted vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011). Before omission S. No. 41
was as under:--
“41 Computer software. ss-ciii[8523.2990,8523.4010, 8523.4090, 8523.5990 and 8523.8090]
[ss-ciii Substituted the word and figures “8524.3100, 8524.3900, 8524.4000. 8524.9100,8524.9910. and
8524.9990”effective from 10th June, 2007 vide the Finance Act, 2007 (IV of 2007), assented on 30th June,
2007, read with declaration made with Finance Bill, 2007
974 S. No. 42 was omitted vide the Finance Act 2011 (XVI of 2011), assented on 29th June, 2011). Before omission S. No.
42 was as under:--
42. Ambulances firefighting vehicles, waste disposal trucks, 87.02, 87.03. 8704.2200. 8704.2300, 8705.3000
brake down lorries special purposes vehicles for the and 8705.9000”
maintenance of streetlights and 'overhead cables.
975 S. No. 43 was omitted vide the Finance Act, 2011 (XVI of 2011), assented on 29th June, 2011). Before omission S. No.
43 was as under:-
ss-civ
[43 Aircrafts 8802.2000. 8802.3000 and 8802.4000)
[ss-civ Sr. No. 43 and the entries relating thereto substituted effective from 6th June, 2006) vide the Finance Act
2006 (III of 2006), assented on 30th June, 2006). At the time of substitution Sr. No. 43 was as under:--
43. Aircraft of unladen weight exceeding 8000 kgs excluding those for recreational 8802.3000 and 8802.4000”.
or pleasure purpose.

[166]
 45 Dextrose and saline infusion giving sets 977[* * *] along with empty 9018.3910, 9018.3920,
non-toxic bags for infusion solution, Dextrose and saline infusion 9021.3100, 978[9021.3900]
giving sets, Artificial parts of the body Intra-Ocular lenses and glucose and 979[Respective
testing equipment. headings]
980
[*** *** ***]
47. Import of articles of household and personal effects including vehicles 99.05
and also the goods for donation to projects established 111 Pakistan
imported by any of the rulers of Gulf Shaikhdoms who is in
possession of residential accommodation 111 Pakistan and goods
including vehicles by the United Arab Emirates dignitaries as are
listed 111 column (2) against heading No. 99.05 in column (1) of the
First Schedule to the Customs Act, 1969 (IV of 1969), for their
personal use and for donation to welfare projects established in
Pakistan subject to the similar conditions as are envisaged for the
purposes of applying zero-rate of customs duty on such goods under
the said Act.
48. Goods imported or supplied under grants-in-aid for which a specific 99.03
consent has been obtained from the 981[Board]; supplies and imports
under agreements signed by the Government of Pakistan before the
30th June, 1996, provided the agreements contained the provision for
exemption of tax at the time of signing of agreement.
982
[*** *** ***

976 S. No. 44 was omitted vide the Finance Act, 2011 (XVI of 2011) assented on 29th June, 2011. Prior to omission S. No 44
was as under:--
“44 Ships, of gross tonnage exceeding 15 ss-cv[8901.2000 8901.3000 and LDTs, excluding those for recreational
or 8901.9000] pleasure purpose.”
[ss-cv Substituted the words “Respective headings” effective from 10th June, 2007 vide the Finance Act, 2007 (IV of
2007), assented on 30th June, 2000 read with declaration made with Finance Bill, 2007]
977 The word “imported” was omitted effective from 10th June, 2007 vide the Finance Act, 2007 (IV of 2007), assented on
30th June, 2007) read with declaration made with Finance Bill, 2007
978 Substituted for the figures “9201.3900” (effective from 10th June, 2007) vide the Finance Act, 2007 (IV of 2007),
assented on 30th June, 2007 read with declaration made with Finance Bill, 2007
979 Omitted the PCT Code “9027.8000” vide the Finance Act, 2022 dated on 30th June, 2022
980 Sr. No. 46 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 46 was as under:
“46. Goods imported by various agencies of the United Nations, diplomats, diplomatic missions, 99.01, 99.02,
privileged persons and privileged organizations which are covered under various Acts and, Orders, 99.03 and
rules and regulations made there under; and agreements by the Federal Government provided that 99.06
such goods are charged to zero-rate of customs duty under Customs Act, 1969 (IV of 1969), and
the conditions laid therein
981 Substituted the words “Central Board of Revenue” effective from 10th June, 2007 vide the Finance Act, 2007 (IV of
2007), assented on 30th June, 2007, read with declaration made with Finance Bill, 2007.
982 Sr. Nos. 49 to 55 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 49 to 55 was as under:
“49. Import of all goods received, In the event of a natural disaster or other catastrophe, as gifts and 99.07, 99.08
relief consignments, including goods imported for the President's Fund for Afghan Refugees, relief and 99.11
goods donated for Afghan Refugees, gifts for President's Fund for Assistance of Palestine and gifts
received by Pakistani organizations from Church World Services or the Catholic Relief Services
subject to the similar conditions as are envisaged for the purposes of applying zero-rate of customs
duty under the Customs Act, 1969 (IV of 1969).
50. Articles imported through post as unsolicited gifts, subject to the same conditions as are envisaged for 99.09
the purposes of applying zero-rate of customs duty under the Customs Act, 1969 (IV of 1969).
51 Imported samples, subject to the same conditions as are envisaged for the purposes of applying 99.10
zero-rate of customs duty under the Customs Act, 1969 (IV of 1969).

[167]
 *** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***]
983
[*** *** ***]
984
[*** *** ***
*** *** ***]
59. Artificial kidneys, eye cornea, hemodialysis machines, 99.24 987[, 99.25 988[,
hemodialyzers, A.V. fistula needles, hemodialysis fluids 985[,] 99.37] and 99.38]
powder, blood tubing tines for dialysis and reverse osmosis plants
for dialysis, double lumen catheter for dialysis, catheter for renal
failure patient and peritoneal dialysis solution 986[,cochlear implants

52. Goods imported by or donated to hospitals run by the Federal Government or a Provincial 99.13, 99.14
Government; and non-profit making educational and- research institutions subject to the similar and 99.15
restrictions, limitations, conditions and procedures as are envisaged for the purpose of applying
zero-rate of customs duty on such goods under the Customs Act, 1969 (IV of 1969).
52A Goods, excluding electricity and natural gas, supplied to hospitals run by the Federal or Provincial Respective
Governments or charitable operating hospitals of fifty beds or more or the teaching hospitals of headings
statutory universities of two hundred or more beds.
53. Import of all such gifts as are received, and such equipment for fighting tuberculosis, leprosy, AIDS 99.12, 99.13
and cancer and such equipment and apparatus for the rehabilitation of the deaf, the blind, crippled and 99.14
or mentally retarded as are purchased or otherwise secured by a charitable non- profit making
institution solely for the purpose of advancing declared objectives of such institution, subject to the
similar conditions as are envisaged for the purposes of applying zero-rate of customs duty under the
Customs Act, 1969 (IV of 1969).
54. Educational, scientific and 99.15 cultural material imported from a country signatory to UNESCO 99.15
Agreement or a country signatory to bilateral commodity exchange agreement with Pakistan,
subject to the same conditions as are envisaged for the purposes of exemption under the Customs
Act, 1969 (IV of 1969).
55. Import of replacement goods 99.16 supplied free of cost in lieu of defective goods imported, subject 99.16”
to similar conditions as are envisaged for the purposes of applying zero-rate of customs duty under
the Customs Act, 1969 (IV of 1969).
983 Serial number 56 in column (1) and the entries relating thereto in columns (2) and (3) were omitted vide Finance Act,
2015. At the time of omission Serial number 56 was as under:--
56. Re-importation of foreign 99.18 on gin goods which were temporarily exported out of 99.18
Pakistan subject to similar conditions as are envisaged for the purposes of applying zero-
rate of customs duty under the Customs Act, 1969 (IV of 1969).
984 Sr. Nos. 57 to 58 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 57 to 58 was as under:
“57. Goods (including dry fruits imported from Afghanistan) temporarily imported into 99.19, 99.20 and 99.21
Pakistan, meant for subsequent exportation charged to zero-rate of customs
duty subject to the similar restrictions, limitations, conditions and procedures as are
envisaged for the purpose of applying zero-rate of customs duty on such goods
under the Customs Act, 1969 (IV of 1969).
58. Import of ship stores, subject 99.22 to the procedures, conditions and restrictions as 99.22”
may be specified by the Collector of Customs in this behalf including those
consignments of such stores that have been released without charging sales tax
since the 151 July, 1998, but excluding such consignments of ship stores as 'have
been cleared on payment of sales tax.
985 Substituted the word “and” vide the Finance Act, 2005 (I of 2005), assented on 26th June, 2005
986 Inserted vide the Finance Act, 2014
987 Substituted the word and figures “and 99.25” vide the Finance Act, 200S (I of 2005), assented on 26th June, 2005

[168]
 system] and angioplasty equipment (balloons, catheters, wires and
stents), subject to the similar conditions and procedures as are
envisaged for the purposes of applying zero-rate of customs duty on
these goods under the Customs Act, 1969 (IV of 1969).
989
[*** *** ***
*** *** ***]
990
[ *** ]
991
[*** *** ***]
992
[ ***
***
***
***
*** ]
993
[ *** ]

988 Inserted vide the Finance Act, 2014

989 Sr. Nos. 60 and 61 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 61 and 61 was as under:
“60. Contraceptives accessories thereof 3926.9020 and 4014.1000
61. Goods produced or manufactured in and exported from Pakistan which are Respective headings
subsequently imported in Pakistan within one year of their exportation,
provided conditions of section 22 of the Customs Act, 1969 (IV of 1969), are
complied with.
990 Sr. No. 62 was omitted vide the Finance Act, 2011 (XVI of 2011) assented on 29th June, 2011. At the time of omission S.
No. 62 was as under:-
“62 Defence stores, whether manufactured locally or Respective imported by the Federal Government against
foreign headings.” exchange allocation for defence, including trucks, trailers and vehicles falling under PCT
heading 87.04 of the First Schedule to the Customs Act, 1969 (IV of 1969), specially modified for mounting
defence equipments, their parts and a accessories for supply to Armed Forces.”
991 Sr. No. 63 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 63 was as under:
“63. Personal wearing apparel and bona fide baggage imported by overseas Pakistanis Respective headings”
and tourists, if imported under various baggage rules and is exempt from customs-
duties.
992 S. Nos. 64,65, 66,67 & 68 was omitted vide the Finance Act, 2011 (XVI of2011), assented on 29th June, 2011). At the
time of omission S. Nos. 64, 65, 66, 67 & 68 were as under:-
“64. Spare palts and equipment for aircraft and ships covered by serial number 43 Respective headings.
and 44 above.
65. Equipment and Machinery for pilotage, salvage or towage for use in ports or Respective headings.
airports.
66. Equipment and Machinery (or air naviption. Respective headings.
67. Equipment and machinery ust4 for servim provided for handling of ships or Respective headings.
aircraft in a customs port customs airport.

68. Such plant and machinery as is notified by the Federal Government in the Respective headings.”
official Gazette but if imported, these shall be entitled to exemption from sales
tax on importation if these are not manufactured in Pakistan.

993 S. No. 69 was omitted vide the Finance Act, 2011 (XVI of 2011) assented on 29th June, 2011. At the time of omission S.
No. 69 was as under:--
ss-cvi
[59. ss-cvii[Bulidoze] and combined harvesters; and components (which Respective headings
include sub-components, components, sub-assemblies and assemblies
but exclude consumables) imported in any kit form and irect materials or
assembly or manufacture thereof, subject to the same conditions as are
envisaged for the purpose of exemption under the Customs Act, 1969 (IV
of 1969).

[169]
 994
[ *** ]
995
[*** *** ***
*** *** ***]
996
[*** *** ***]
997
[*** *** ***]
998
[*** *** ***

[ss-cvi S. No. 69 and the entries relating thereto were substituted vide the Finance Act, 2009 (I of 2009), assented
on 30th June, 2009. At the time of substitution S. No. 69 was as under:--
“69. Tractors, bulldozers and combined harvesters; and CKD kits thereof ss-cviii[8701.9010, 8701.9020
imported by recognized local manufacturers as per their approved ss-cix[, 8701.9090, 8429.1900 and
deletion programme subject to the same conditions as are envisaged 8433.5100]
for the purposes of exemption under the Customs Act, 1969 (IV of
1969).
[ss-cvii Substituted the words and comma “Tractors, bulldozers vide the Sales Tax (Amendment) Ordinance, 2011 (II
of 2011) promulgated on 15th March, 2011]
[ss-cviii Substituted the words “Respective headings” (effective from 10th June, 2007) vide the Finance Act, 2007 (IV
of 2007), assented on 30th June, 2007, read with declaration made with Finance Bill, 2007]
[ss-cix The comma and figures inserted vide the Finance Act, 2008 (I of 2008), assented on 26th June, 2008
994 S. No. 70 was omitted vide the Finance Act, 2011 (XVI of 2011) assented on 29th June, 2011. Before omission S. No. 70
was as under-
ss-cx
[70 Import and supply of fully dedicated CNG Euro-2 buses 8702.9010 and whether in CBU or CKD condition
8702.9090)]
[ss-cx S. No. 70 was substituted (effective from 10th June, 2007) vide the Finance Act, 2007 (IV of 2007), assented
on 30th June, 2007) read with declaration made with Finance Bill, 2007. At the time of substitution it was as
under:--
“70 Import and supply of CNG Euro-2 buses, whether in CBU or CKD condition”
995 Sr. Nos. 71 and 72 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 71 and 72 was as under:
“71. Goods and services purchased Respective headings by non-resident Respective headings
entrepreneurs and in trade fairs and exhibitions subject to reciprocity and such
conditions and restrictions as may be specified by the Board.
72. Uncooked poultry meat whether or not fresh, frozen or otherwise, preserved or 02.07”
packed
996 Sr. No. 73 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
73 was as under:-
“73. Milk 04.01
997 Sr. No. 73A was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 73A was as under:-
“73A. Milk and cream, concentrated or containing added sugar or 04.02
other sweetening matter, excluding that sold in retail packing
under a brand name
998 Sr. Nos. 74 to 80 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission
Sr. Nos. 74 to 80 was as under:-
“74. Flavored milk, excluding that sold in retail packing under a 0402.9900
brand name
75. Yogurt, excluding that sold in retail packing under a brand 0403.1000
name
76. Whey, excluding that sold in retail packing under a brand 04.04
name
77. Butter, excluding that sold in retail packing under a brand 0405.1000
name
78. Desi ghee, excluding that sold in retail packing under a brand 0405.9000
name
79. Cheese, excluding that sold in retail packing under a brand 0406.1010
name
80. Processed cheese not grated or powdered, excluding that sold 0406.3000”
in retail packing under a brand name

[170]
 *** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***
*** *** ***]
999
[*** *** ***]
1000
[*** *** ***]
1001
[*** *** ***]
1002
[*** *** ***]
1003
[*** *** ***]
1004
[*** *** ***]
*** *** ***
*** *** ***]
89 Exercise books 4820.2000
1005
[*** *** ***]
1006
[*** *** ***]
1007
[*** *** ***]

999 Sr. No. 81 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 81 was as under:
“81. Cotton seed 1207.1000”
1000 Sr. No. 82 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
82 was as under:-
“82 Frozen, prepared or preserved sausages and similar products of 1601.0000”
poultry meat or meat offal, excluding those sold in retail packing
under a brand name or a trademark
1001 Sr. No. 83 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
82 was as under:-
“83 Meat and similar products of prepared frozen or preserved meat 1602.3200, 1602.3900, 1602.5000, 1604.1100,
or meat offal of all types including poultry meat and fish, 1604.1200, 1604.1300, 1604.1400, 1604.1500,
excluding those sold in retail packing under a brand name or a 1604.1600, 1604.1900, 1604.2010, 1604.2020,
trademark 1604.2090,”
1002 Sr. No. 84 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 84 was as under:
“84 Preparations suitable for infants, put up for retail sale 1901.1000”
1003 Sr. No. 85 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
85 was as under:-
“85 Fat filled milk, excluding that sold in retail packing under a brand 1901.9090
name or a trademark
1004 Sr. Nos. 86 to 88 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S.
Nos. 86 to 88 was as under:
“86 Colours in sets (Poster colours) 3213.1000
87 Writing, drawing and marking inks 3215.9010 and 3215.9090
88 Erasers 4016.9110 and 4016.9290”
1005 Sr. No. 90 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 90
was as under:
90 Pencil sharpeners 8214.1000
1006 Sr. No. 91 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
91 was as under:-
“91 Energy saver lamps 8539.3110
1007 Sr. No. 92 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 92 was as under:
“92 Sewing machines of the household type 8452.1010 and 8452.1090”

[171]
1008
[*** *** ***]
94 Wheelchairs 8713.1000 and 8713.9000
1009
[*** *** ***]
1010
[*** *** ***]
1011
[*** *** ***]
1012
[*** *** ***]
1013
[*** *** ***]
100 Construction materials to Gawadar Export Processing Zone's Respective headings
investors and to Export Processing Zone Gawadar for development
of Zone's infrastructure.
1014
[100A Materials and equipment 1015[(plant, machinery, equipment, Respective Headings
appliances and accessories)] for construction and operation of
1016
[Gwadar] Port and development of Free Zone for 1017[Gwadar]
Port as imported by or supplied to China Overseas Ports Holding
Company Limited (COPHCL) and its operating companies namely
(i) China Overseas Ports Holding Company Pakistan (Private)
Limited (ii) 1018[Gwadar] International Terminal Limited, (iii)
1019
[Gwadar] Marin Services Limited and (iv) 1020[Gwadar] Free
Zone Company Limited, their contractors and sub-contractors; and
Ship Bunker Oils bought and sold to the ships calling on/visiting
1021
[Gwadar] Port, 1022[by the aforesaid operating companies] having
Concession Agreement with the 1023[Gwadar] Port 1024[by the
aforesaid operating companies] Authority, for a period of forty year,
subject to the following conditions and procedure, namely,—

1008 Sr. No. 93 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
93 was as under:-
“93 Bicycles 87.12
1009 Sr. No. 55 was omitted vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the the time of omission Sr
No. 95 was as under:-
95 Vessels for breaking up 89.08
1010 Sr. No. 96 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 96
was as under:
“96 Other drawing, marking out or mathematical calculating instruments (geometry box) 9017.2000”
1011 Sr. No. 97 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 97
was as under:
97 Pens, ball pens, markers and porous tipped pens] 96.08
1012 Sr. No. 98 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 98
was as under:
98 Pencils including colour pencils 96.09
1013 Sr. No. 99 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 99 was as under:
“99 Compost (non-chemical fertilizer) produced and supplied locally Respective headings”
1014 Inserted vide the Finance Act, 2016
1015 Inserted vide the Finance Act, 2017 assented on 19th June, 2017
1016 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017
1017 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017
1018 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017
1019 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017
1020 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017
1021 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017
1022 Inserted vide Tax Laws (Amendment) Ordinance, 2019 dated 9th October, 2019
1023 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017
1024 Inserted vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020 effect from the 1st June, 2020

[172]
 (A) Conditions and procedure for imports.—
(i) This exemption shall be admissible only to China Overseas
Ports Holding Company Limited (COPHCL) and its operating
companies, their contractors and sub-contractors which hold
the Concession Agreement;
(ii) Ministry of Ports and Shipping shall certify in the prescribed
manner and format as per Annex-I that the imported materials
and equipments are bonafide requirement for construction and
operation of Gawadar Port and development of Free Zone for
Gawadar Port. The authorized officer of that Ministry shall
furnish all relevant information online to Pakistan Customs
against a specific user ID and password obtained under section
155D of the Customs Act, 1969 (IV of 1969). In already
computerized Collectorate or Customs station, where the
computerized system is not operational, the Project Director or
any other person authorized by the Collector in this behalf
shall enter the requisite information in the Customs
Computerized System on daily basis, whereas entry of the data
obtained from the customs stations which have not yet been
computerized shall be made on weekly basis, provided that this
condition shall not apply to ship bunker oils; and
(iii) The goods so imported 1025[and also those already imported
under Notification No. S.R.O. 115(I)/2008, dated the 6th
February, 2008,] shall not be sold or disposed of without prior
approval of the FBR and payment of sales tax leviable at the
1026
[applicable rate on residual value] provided that this
condition shall not apply to ship bunker oils.
(B) Conditions and procedure for local supply.—
(i) This exemption shall be admissible only to China Overseas
Ports Holding Company Limited (COPHCL) and its operating
companies, their contractors and sub-contractors which hold
Concession Agreement;
(ii) for claiming exemption on goods which are otherwise taxable
in Pakistan, the operating companies will purchase the
materials and equipment for the construction of 1027[Gwadar]
Port and development of Free Zone for 1028[Gwadar] Port from
the sales tax registered persons only;
(iii) invoice of the exempt supply, containing the particulars
required under section 23 of the aforesaid Act, shall for each
supply be issued by the registered person to the operating
company mentioning thereon that the said invoice is being
issued under this notification;
(iv) a monthly statement summarizing all the particulars of the
supplies made in the month against invoices issued to the

1025 Inserted vide Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020 effect from the 1st June, 2020
1026 Substituted the words “time of import” vide Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020 effect from
the 1st June, 2020
1027 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017
1028 Substituted for “Gawadar”vide the Finance Act, 2017 assented on 19th June, 2017

[173]
 operating companies shall be prepared in triplicate by the
registered persons making the exempt supplies and shall be
signed by the authorized person of the registered person. All
three copies of the said signed monthly statement shall be got
verified by the registered person from the person authorized to
receive the supplies in the office of operating company,
confirming that supplies mentioned in the monthly statement
have been duly received;
(v) after verification from the operating company, original copy of
the monthly statement will be retained by the registered
person, duplicate by the operating company and the triplicate
provided by the registered person to the Collector of Sales Tax
having jurisdiction, by twentieth day of the month following
the month in which exempt supplies to the operating
companies were made; and
(vi) the registered person making the exempt supplies shall keep
the aforesaid record for presentation to the sales tax
department as and when required to do so.
100B Supplies made by the businesses to be established in the Gwadar Respective Headings]
Free Zone for a period of twenty-three years within the Gwadar Free
Zone, subject to the condition that the sales and supplies outside the
Gwadar Free Zone and into the territory of Pakistan shall be
subjected to sales tax.
100C Vehicles imported by China Overseas Ports Holding Company
Limited (COPHCL) and its operating companies namely (i) China
Overseas Ports Holding Company Pakistan (Private) Limited (ii)
Gwadar International Terminal Limited, (iii) Gwadar Marine
Services Limited and (iv) Gwadar Free Zone Company Limited, for
a period of twenty-three years for construction, development and
operations of Gwadar Port and Free Zone Area subject to limitations,
conditions prescribed under PCT heading 9917 (3)”;
1029
[100D Machinery, equipment, materials and goods imported either for Respective headings.]
exclusive use within the limits of Gwadar Free Zone, or for making
exports therefrom, subject to the conditions that such machinery,
equipment, materials and goods, are imported by investors of
Gwadar Free Zone, and all the procedures, limitations and
restrictions as are applicable on such goods under the Customs Act,
1969 (Act IV of 1969) and rules made thereunder shall, mutatis
mutandis, apply provided that if any of such goods is taken out of
the Zone for purpose other than the export, the tax on the same shall
be paid by the importer.
1030
[*** *** ***]
1031
[*** *** ***]

1029 Added vide Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020 effect from the 1st June, 2020
1030 Sr. No. 101 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 101 was as under:-
“101 Raw and pickled hides and skins, wet blue hides and skins, finished leather, and accessories, Respective
components and trimmings, if imported by a registered leather goods manufacturer, for the headings
manufacture of goods wholly for export, provided that conditions, procedures and restrictions
laid down in rules 264 to 278 of the Customs Rules, 2001 are duly fulfilled and complied with.

[174]
1032
[*** *** ***]
1033
[*** *** ***
*** *** ***]
1034
[*** *** ***]
107 Import and supply of iodized salt bearing brand names and 2501.0010
trademarks whether or not sold in retail packing.
1035
[*** *** ***]

1031 Sr. No. 102 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 102 was as under:
“102 Machinery, equipment and materials imported either for exclusive use within the limits of Respective
Export Processing Zone or for making exports therefrom, and goods imported for headings”
warehousing purpose in Export Processing Zone, subject to the conditions that such
machinery, equipment, materials and goods are imported by investors of Export Processing
Zones, and all the procedures, limitations and restrictions as are applicable on such goods
under the Customs Ace 1969 (IV of 1969) and rules made thereunder shall mutatis mutandis,
apply.
1032 Sr. No. 103 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 103 was as under:-
“103 Import and supply thereof, up to the year 2030, of ships and all floating crafts including tugs, Respective
dredgers, survey vessels and other specialized crafts purchased or bare-boat chartered by a headings
Pakistan entity and flying the Pakistan flag, except ships or crafts acquired for demolition purposes
or are designed or adapted for use for recreation or pleasure purposes, subject to the condition that
such ships or crafts are used only for the purpose for which they were procured, and in case such
ships or crafts me used for demolition purposes within a period of five years of their acquisition
sales tax applicable to such ships purchased for demolition purposes shall be chargeable.
1033 Sr. Nos. 104 and 105 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 104 and 105 was as under:
“104 Substances registered as drugs under the Drugs Act, 1976 (XXXI of 1976) and medicaments as Respective
are classifiable under Chapter 30 of the First Schedule to the Customs Act, 1969 (IV of 1969) headings
except the following, even if medicated or medicinal in nature, namely:-
(a) filled infusion solution bags imported with or without infusion given sets;
(b) scrubs, detergents and washing preparations;
(c) soft soap or no-soap soap;
(d) adhesive plaster;
(e) surgical tapes;
(f) liquid paraffin;
(g) disinfectants; and
(h) cosmetics and toilet preparations.
105 Raw materials for the basic manufacture of pharmaceutical active ingredients and for Respective
manufacture of pharmaceutical products, provided that in case of import, only such raw headings”
materials shall be entitled to exemption which are liable to customs duty not exceeding eleven
per cent ad valorem, either under the First Schedule or Fifth Schedule] to the Customs Act,
1969 (IV or 1969) or under a notification issued under section 19 thereof.
1034 Sr. No. 106 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 106 was as under:-
“106 Import of Halal edible offal of bovine animals. 0206.1000, 0206.8000 and 0206.9000
1035 Sr. No. 108 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 108 was as under:-

[175]
1036
[*** *** ***
*** *** ***]
1037
[*** *** ***]
112 Following cardiology / cardiac surgery, neurovascular, Respective headings
electrophysiology, eudosurgery, endoscopy, oncology, urology,
gynecology, disposables and other equipment:-
A. ANGIOPLASTY PRODUCTS
1. Coronary Artery Stents
2. Drugs Eluting Coronary Artery Stents
3. Coronary Artery Dilatation Catheters (Balloons)
4. PTCA Guide Wire
5. PTCA Guiding Catheters
6. Inflation Devices/Priority Packs
1038
[7. Optical Coherence Technology (OCT) System
8. OCT Catheters
9. Intravascular Ultrasound (IVUS)

“108 Components or sub-components of energy saver lamps, namely:- 8539.9040

(a) Electronic Circuit 8539.9040
(b) Plastic Caps (Upper and Lower) 8539.9040
(c) Base Caps B22 and E27 8539.9040
(d) Tungsten Filaments 8539.9040
(e) Lead-in-wire 3206.5010
(f) Fluorescent Powder (Tri Band Phospher) 3824.9099
(g) Adhesive Additive 3824.8400
(h) Al-Oxide Suspension 3214.1050
(i) Capping Cement 3215.9010
(j) Stamp Pad Ink 2850.0000
(k) Gutter for Suspension
1036 Sr. Nos. 109 and 110 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 109 and 110 was as under:
“109 Goods imported temporarily with a view to subsequent exportation, as Respective headings
concurred by the Board, including passenger service item, provision and
stores of Pakistani Airlines.
110 The following items with dedicated use of renewable source of energy like solar
and wind, subject to certification by the Alternative Energy Development Board
(AEDB), Islamabad for the period ending on the 30th June, 2023:--
(a) Solar PV panels; 8541.5000
(b) LVD induction lamps; 8539.3290]
(c) SMD, LEDs with or without ballast, with fittings and fixtures; 8539.3290, 8539.5010 and
8539.5020 and 9405.4090
(d) Wind turbines including alternators and mast; 8502.3100
(e) Solar torches; 8513.1040
(f) Lanterns and related instruments; 8513.1090

(g) PV modules along with related components, including invertors, charge 8541.4000,
controllers and batteries. 8504.4090,
9032.8990 and 8507.0000
(h) Tubular day lighting device 9405.5010
(i) Energy saver lamps and tube lights of varying voltages (operating on AC 8539.3110, 8539.3120
or DC)
(j) Invertors (off-grid/on grid/ hybrid) with provision for direct 8504.4090
connection/ input from renewable energy source and with Maximum Power
Point Tracking (MPPT);
1037 Serial No. 111 was omitted vide the Finance Act, 2016. At the time of omission serial No. 111 was as under:-
111 White crystalline sugar 1701.9910 and 1701.9920
1038 Added vide Finance Supplementary (Amendment) Act, 2018 (XXXVIII of 2018) assented on 8th October, 2018

[176]
 10. Fractional Flow Reserve (FFR/IFR) System
11. IVUS/FFR/IFR Catheters and wires
12. Support Micro Catheters (Straight and Angled)
13. Drug Coated Angioplasty Balloon
14. Coronary and Peripheral Micro Coils
15. Thrombectomy Device
16. Thrombus Aspiration Catheters
17. Covered Stents (Coronary/Peripheral)
18. Vessel Closure Devices
19. Embolic Protection Devices
20. Renal Stents
21. Vena-cava Filters
22. Coronary and Peripheral Snares
23. Athrectomy Devices
24. IABP Consoles & Catheters
25. Intracardiac Echocardiography Machine & Catheters]
B. ANGIOGRAPHY PRODUCTS
1. Angiography Catheters
2. Sheaths
3. Guide Wires
4. Contrast Lines
5. Pressure Lines
6. Manifolds
1039
[7. Wrist Bands for Radial Vessel Closure]
C. CONTRAST MEDIA FOR ANGIOGRAPHY/
ANGIOPLASTY
1. Angiography Accessories
2. ASD Closure Devices
3. ASD Delivery Systems
4. VSD Closure Devices
5. VSD Delivery System
6. Guide Wires
7. Sizing Balloons
8. Sizing Plates
9. PDA Closure Devices
10. PDA Delivery system
D. TEMPORARY PACEMAKERS
(with leads, connectors and accessories)
E. PERMANENT PACEMAKER
(with leads, connectors and accessories)
F. HEART FAILURE DEVICES
(with leads, connectors and accessories)
G. IMPLANTABLE CARDIOVERTES
(with leads, connectors and accessories)
H. CARDIAC ELECTROPHYSIOLOGY PRODUCTS
1. Electrophysiology catheters
2. Electrophysiology cables
3. Electrophysiology connectors
1040
[4. Excimer Laser System with Accessories

1039 Added vide Finance Supplementary (Amendment) Act, 2018 (XXXVIII of 2018) assented on 8th October, 2018

[177]
 5. Laser Sheath, Occlusion Balloons, Dilator Sheaths (Rotation &
Manual)
6. Intra Cardiac Echocardiography (ICE) System and Accessories
7. Lead Locking Devices and Accessory Kit
8. Remote EP Monitoring Device and Accessories
9. Ablation catheters
10. 3-D Cardiac Mapping System
11. Cryoballoon System and Accessories];
I. LEAR CARDIOLOGY PRODUCTS
1. Radioactive isotopes
2. Cold kits (Cardioloite MAA, DTPA etc)
J. CARDIAC SURGERY PRODUCTS
1. Oxygenators
2. Cannulas
3. Prosthetic Heart Valves
4. Luminal Shunts for heart surgery
5. Artificial limbs and appliances
1041
[6. High-Flow, Low-Profile Percutaneous Heart Pump PHP
Console and Catheters.
7. Tandem Heart / Tandem Lung and Accessories.
8. Ventricular Assist Device System.
(a) Heart Mate-II
(b) Heart Mate-III
(c) Centri Meg LEOV
9. Beating Heart Surgery stabilizers & Coronary Shunts
10. Minimally invasive surgery equipment & Instruments
11. RF Ablation equipment for AF (Surgical)
12. Heart Lung Machines];
K. EQUIPMENT
1. Cardiac Angiography Machine
2. Echocardiography Machines
3. ETT Machines
4. Gamma Camera for Nuclear cardiology studies
1042
[5. Left Ventricular Assist Device / System (LVAD) and
Catheters
6. MitraClipTranscatheter Mitral Valve System
7. MitraClip Guide Catheter, Clip and Delivery System
8. Patent Foramen Ovale (PFO) Closure Device
9. Left Atrial Appendage (LAA) Occluder
10. Transcatheter Aortic / Heart Valve System (TAVI/TAVR)
11. Cerebral Retrievable Stents
12. Aortic Stent Grafts
13. Embolization Coils, Delivery System, Filling Coil
14. Abdominal Aortic Aneurysm (EVAR) System and Accessories/
thoracic EVAR/ extension
15. Insertable Cardiac Monitor (ICM)
16. Carotid Stents

1040 Added vide Finance Supplementary (Amendment) Act, 2018 (XXXVIII of 2018) assented on 8th October, 2018
1041 Added vide Finance Supplementary (Amendment) Act, 2018 (XXXVIII of 2018) assented on 8th October, 2018
1042 Added vide Finance Supplementary (Amendment) Act, 2018 (XXXVIII of 2018) assented on 8th October, 2018

[178]
 17. Vascular Clips
18. MRI Compatible Cardiac Monitor, Infusion Pump, Anesthesia
Machine with Accessories];
L. PERIPHERAL INTERVENTIONS EQUIPMENT
Disposables and other equipment for peripheral interventions
including stents (including carotid and wall stents), balloons,
sheaths, catheters, guide wires, filter wires coils, needles, valves
(including rotating homeostatic valves), connecting cables, inflation
devices adaptors 1043[, Drug Eluting Peripheral Stents]
1044
[*** *** ***
*** *** ***]
1045
[*** *** ***]
1046
[*** *** ***
*** *** ***]
1047
[*** *** ***]
1048
[*** *** ***]
1049
[*** *** ***]

1043 Inserted vide Finance Supplementary (Amendment) Act, 2018 (XXXVIII of 2018) assented on 8th October, 2018
1044 Sr. Nos. 113 and 114 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 113 and 114 was as under:
“113 High Efficiency Irrigation Equipment. 8413.7010
(If used for agriculture sector) 8424.4100,
1) Submersible pumps (up to 75 lbs and head 150 meters) 8424.2010
2) Sprinklers including high and low pressure (center pivotal) system, conventional sprinkler 8481.1000,
equipment, water reel traveling sprinkler, drip or trickle irrigation equipment, mint irrigation 8481.3000,
sprinkler system. 9026.2000,
3) Air release valves, pressure gauges, water meters, back flow preventers, and automatic 9032.8990
controllers.
114 Green House Farming and Other Green House Equipment 3920.1000,
(If fused for agriculture sector) 3926.9099,
(1) Tunnel farming equipment consisting of plastic covering and mulch film, anti-insect net 5608.1900,
and shade net. 5608.9000]
(2) Green houses (prefabricated). 9406.1010 and
9406.9010]
1045 Sr. No. 115 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 115 was as under:-
“115 Plant, machinery and equipment imported for setting up fruit processing and preservation units in Respective
Gilgit-Baltistan, Balochistan Province and Malakand Division upto the 30th June, 2019 subject to headings
the same conditions and procedure as are applicable for import of such plant, machinery and
equipment under the Customs Act, 1969 (IV of 1969).
1046 Sr. Nos. 116 and 117 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 116 and 117 was as under:
“116 Plant, machinery and equipment imported for setting up industries in FATA upto the 30th Respective
June, 2019 subject to the same conditions and procedure as are applicable for import of such headings
plant, machinery and equipment under the Customs Act, 1969 (IV of 1969)
117 Appliances and items required for ostomy procedures as specified in the Chapter 99 of the 99.25”
First Schedule to the Customs Act, 1969, subject to same conditions as specified therein
1047 Sr. No. 118 was omitted vide Finance Supplementary (Second Amendment) Act, 2019 (III of 2019) assented on 9th
March, 2019. At the time of obmission Sr. No. 118 was as under:-
118 Colostomy and urostomy bags 3926.9050
1048 Serial No. 119 was omitted vide the Finance Act, 2016. At the time of omission serial No. 19 was as under:-
119 Tubular day lighting devices 8539.3930
(TDDs)
1049 Sr. No. 120 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 120
was as under:

[179]
120 Diagnostic kits or equipment, Respective headings
namely:-
HIV Kits
4C Es Trionyx
5C Cell control Lnormal
Bovine precision multi sera
Pregnancy test
DNA SSP DRB Generic IC
Reticulocyte count (control) retic
C Control
Kit for vitamin B12 estimation
Ferritin kit
HEV (Hepatitis E virus)
ID-DA Cell
Urine Analysis Strips
Albumin beg
Cratinin sysi
Ring
Detektiion cups
ISE Standard
Alkaline phosphatase (Alb)
Bilirubin kit
HDL Cholesterol
Ck creatinin kinase (mb)
Ck nac
Glulcose kit
Ammonia Modular
Lac
Ldh kit (lactate dehydrogenase kit)
Urea uv kit
Ua plus
Tina quant
Crp control
Aslo tin
Proteins
Lipids
HDL/LDL cholesterol
Protein kit
U
Control Sera
Pac
Control
HCV
UIBC (Unsaturated iron binding capacity)
U/CSF
Inorganic Phosphorus kit
Kit amplicon kit (for PCR) Ige
Lc hsv
Oligo
NA/K/CL
Hcy
Standard [or calibrated]
Hla B27
Liss Coombs
Typhoid kit
HCV amp
Urine test strips
Strips for sugar test
Blood glucose test strips
Kits for automatic cell separator
for collection of platelets
Elisa or Eclia kit
PCR kits
Immunoblast (western blot test).
I.C.T. (Immunochromatographic kit)
CBC Reagent (For hematology analyzer) Complete
blood count reagent

[180]
 121 Blood Bag CPDA-1 with blood transfusion set pack in aluminum Respective headings
foil with set.
1050
[Explanation.-For removal of doubt, it is clarified that the
blood transfusion sets not packed in aluminum foil imported with
blood bags CPDA-1, in corresponding quantity in same
consignment are also exempt;]
122 Urine drainage bags Respective headings
1051
[*** *** ***]
1052
[*** *** ***]
1053
[*** *** ***]
1054
[*** *** ***
*** *** ***]
1055
[*** *** ***]
1056
[*** *** ***
*** *** ***
*** *** ***

1050 Added vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023.
1051 Sr. No. 123 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 123 was as under:-
“123 Aircraft, whether imported or acquired on wet or dry lease: Provided that in case of 8802.2000,
import or acquisition on wet or dry lease by Pakistan International Airlines 8802.3000,
Corporation, this exemption shall be available with effect from 19th March, 2015 8802.4000
1052 Sr. No. 143 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 124 was as under:-
“124 Maintenance kits for use in trainer aircrafts of PCT headings 8802.2000 and Respective
8802.3000 headings
1053 Sr. No. 125 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 125 was as under:-
“125 Spare parts for use in aircrafts, trainer aircrafts or simulators Respective
headings
1054 Sr. Nos. 126 and 127 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 116 and 117 was as under:
“126 Machinery, equipment and tools for setting up maintenance, repair and Respective headings
overhaul (MRO) workshop by MRO company recognized by Aviation
Division
127 Operational tools, machinery, equipment and furniture and fixtures on one- Respective headings”
time basis for setting up Greenfield airports by a company authorized by
Aviation Division
1055 Sr. No. 128 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 128 was as under:-
“128 Aviation simulators imported by airline company recognized by Aviation Division Respective
headings
1056 Sr. Nos. 129 to 132 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 129 and 132 was as under:
“129 Import of plant, machinery and production line equipment used for the Respective headings
manufacturing of mobile phones by the local manufacturers of mobile
phones duly certified by the Pakistan Telecommunication Authority
130 Sodium Iron (Na Fe EDTA), and other premixes of vitamins, minerals and Respective Headings, and
micro-nutrients (food grade) and subject to conditions imposed for importation subject to conditions
under the Customs Act, 1969] imposed for importation
under the Customs Act,
1969;
131 Laptop computers, notebooks whether or not incorporating multimedia kit 8471.3010
132 Personal computers 8471.3020”

[181]
*** *** ***]
133. Pesticides and their active ingredients registered by the Department 38.03
of Plant Protection under the Agricultural Pesticides Ordinance,
1971(II of 1971), stabilizers, emulsifiers and solvents, namely:-
Xylol (xylenes) 2707.3000
- Beta Pinene / Agrotin 527 / Terpenic derivative 2902.1990
Toluene 2902.3000
Mixed xylene isomers 2902.4400
Naphthalene 2902.9010
Solvesso-100, 150, 200 2902.9090
1057 1058
[***] [***]
1059 1060
[***] [***]
Methanol (methyl alcohol) 2905.1100
Propylene glycol (propane-1, 2-diol) 2905.3200
- Adhesives Polyvinyl Acetate 2905.4900
- Polyvinyl Alcohol
Ingredients for pesticides 2906.2910
Other ingredients for pesticides 2906.2990
- Solvenon MP / 1-Methoxy 2-Propanol 2909.4910
- Methyglycol Acetate
Methanal (formaldehyde) 2912.1100
Cyclo-hexanone and methyl- cyclohexanones 2914.2200
- Cyclohexanon 2914.2990
- Cyclohexanone Mixed petroleum Xylene
(1,2 & 1,3 & 1,4 dimethyl benzene and
ethyle benzene)
Acetic anhydride 2915.2400
Ingredients for pesticides 2916.3920
Dioctyl orthophthalates 2917.3200
1061 1062
[***] [***]
1063 1064
[***] [***]
1065 1066
[***] [***]
Endosulfan Technical Material 2920.9020
Other ingredients for pesticides 2920.9090
Diethylamine and its salts 2921.1200
Ingredients for pesticides 2921.4310
Other Ingredients for pesticides 2921.4390
Ingredients for pesticides 2921.5110
1067 1068
[***] [***]

1057 Omitted the words “Ingredients for pesticides”vide the Finance Act, 2017 assented on 19th June, 2017
1058 Omitted the figure “2903.3040”vide the Finance Act, 2017 assented on 19th June, 2017
1059 Omitted the words “Cadusafos Technical Material”vide the Finance Act, 2017 assented on 19th June, 2017
1060 Omitted the figure “2903.6900”vide the Finance Act, 2017 assented on 19th June, 2017
1061 Omitted the words “Ingredients for pesticides”vide the Finance Act, 2017 assented on 19th June, 2017
1062 Omitted the figure “2918.9010”vide the Finance Act, 2017 assented on 19th June, 2017
1063 Omitted the words “Ingredients for pesticides”vide the Finance Act, 2017 assented on 19th June, 2017
1064 Omitted the figure “2919.0010”vide the Finance Act, 2017 assented on 19th June, 2017
1065 Omitted the words “Other Ingredients for pesticides”vide the Finance Act, 2017 assented on 19th June, 2017
1066 Omitted the figure “2919.0090”vide the Finance Act, 2017 assented on 19th June, 2017
1067 Omitted the words “Tiethanolamine and its salts”vide the Finance Act, 2017 assented on 19th June, 2017
1068 Omitted the figure “2922.1300”vide the Finance Act, 2017 assented on 19th June, 2017

[182]
 Dimethyl Formamide (DMF) 2924.1990
1069 1070
[***] [***]
Other Ingredients for pesticides 2924.2990
Alpha cyano, 3-phenoxybenzyl (-) cis, trans 3-(2,2-diclord vinyl) 2926.9010
2,2 dimethyl cyclopropane carboxylate
(S) Alpha cyano, 3-phenoxybenzyl (S)-2-(4, chloro phenyl)-3 2926.9020
mehtyl butyrate
Cyano, 3-phenony benzyl 2,2,3,3 tetra methyl cyclopropane 2926.9030
carboxalate
- Cypermethrin, Alpha Cypermethrin, Beta-Cypermethrin, Zeta- 2926.9050
Cypermethrin, Lambda Cylalothrin, Deltamethrin, Fenpropathrin,
Esfenvalerate,
Bifenthrin Technical Material- Acetamiprid,
Imidacloprid Technical Material-
Monomehypo, Chlorothalonil Technical
Material-
Bromoxynil Technical Material
Other nitrite compounds- 2926.9090
Cyfluthrin, Beta Cyfluthrin Technical Material
2-N, N-Dimethyl amino-I sodium thiosulphate, 3-thiosulfourropane 2930.2010
Ingredients for pesticides 2930.2020
2- N,N-dimethyamino 1,3 disodium thiosulphate propane 2930.9010
1071
Other orgonosulpher compounds [Respective headings]
- Ethion, Methamidophos Technical Material
- Dimethysulfoxid
1072
Ingredients for pesticides [Respective headings]
1073
Other Ingredients for pesticides [Respective headings]
1074
Ingredients for pesticides [Respective headings]
2,3 Dihydro 2-2 dimethyl-7 benzo furanyl methyl-carbamate 2932.9910
Other ingredients for pesticides - Carbosulfan Technical Material 2932.9990
Fipronil 2933.1900
1075
Ingredients for pesticides [Respective headings]
Other Ingredients for pesticides 2933.3990
- Chlorpyrifos, Triazophos, Diazinon Technical Material 2933.5950
Other Ingredients for pesticides 2933.5990
Pyrimethanine 2933.6910
Ingredients for pesticides 2933.6940
- Atrazine Technical Material 2933.6990
- Atrazine Technical Material 2933.6990
Isatin (lactam of istic acid) 2933.7910
1-Vinyl-2-pyrrol-idone 2933.7920
- Triazophos Technical Material 2933.9910
Ingredients for pesticides 2934.1010

1069 Omitted the words “Ingredients for pesticides”vide the Finance Act, 2017 assented on 19th June, 2017
1070 Omitted the figure “2924.2930”vide the Finance Act, 2017 assented on 19th June, 2017
1071 Omitted the PCT Code “2930.9090” vide the Finance Act, 2022 dated on 30th June, 2022
1072 Omitted the PCT Code “2931.0010” vide the Finance Act, 2022 dated on 30th June, 2022
1073 Omitted the PCT Code “2931.0090” vide the Finance Act, 2022 dated on 30th June, 2022
1074 Omitted the PCT Code “2932.0820” vide the Finance Act, 2022 dated on 30th June, 2022
1075 Omitted the PCT Code “2933.3930” vide the Finance Act, 2022 dated on 30th June, 2022

[183]
 Ingredients for pesticides 2934.9920
-Methyl benzimidazol - 2 - ylcarbamate - Dicopper chloride 2938.9010
trihydroxide
1076
Ingredients for pesticides [2939.8010]
1077
- Abamectin, Emamectin Technical Material [Respective headings]
Other Ingredients for pesticides 2941.9090
1078
Sulphonic acid (Soft) [Respective headings]
1079
Other surface active agents [Respective headings]
1080
Catonic [Respective headings]
1081
Non ionic surface active agents [Respective headings]
1082
Other organic surface active agents [Respective headings]
3402.9000
1083
Chemical preparations [3824.9999]
Solvent C-9 2707.5000]
1084
[White spirit 2710.1240
Solvent oil 2710.1250]
1085
[*** *** ***
*** *** ***
*** *** ***]
1086
[137. Paper weighing 60 g/m2, art paper, printing paper and art card for 4802.5510, 4810.1990,
printing of Holy Quran imported by Federal or Provincial 4810.1910, 4802.6990
Governments and Nashiran-e-Quran as per quota determined by and 4810.2900.]
IOCO
1087
[*** *** ***

1076 Substituted for “2939.9910” vide the Finance Act, 2017 assented on 19th June, 2017
1077 Omitted the PCT Code “2941.90500” vide the Finance Act, 2022 dated on 30th June, 2022
1078 Omitted the PCT Code “3402.1110” vide the Finance Act, 2022 dated on 30th June, 2022
1079 Omitted the PCT Code “3402.1190” vide the Finance Act, 2022 dated on 30th June, 2022
1080 Omitted the PCT Code “3402.1290” vide the Finance Act, 2022 dated on 30th June, 2022
1081 Omitted the PCT Code “3402.1300” vide the Finance Act, 2022 dated on 30th June, 2022
1082 Omitted the PCT Code “3402.1900” vide the Finance Act, 2022 dated on 30th June, 2022
1083 Substituted for “3824.9099” vide the Finance Act, 2017 assented on 19th June, 2017
1084 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1085 Sr. Nos. 134 to 136 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 134 and 136 was as under:
134. Goods received as gift or donation from a foreign government or organization by the Federal
or Provincial Governments or any public sector organization subject to recommendations of 9908
the Cabinet Division and concurrence by the Federal Board of Revenue.
135. Sunflower and canola hybrid seeds meant for sowing Respective heading
136. Combined harvesters upto five years old 8433.5100”
1086 Sr. No. 137 was substituted vide the Finance Act, 2022 dated on 30th June, 2022. At the time of substitution Sr. No. 137
was as under:-
i[137. Paper weighing 60 g/m2 ii[, art paper and printing paper] for printing of Holy 4802.5510 iii[,4810.1990,
Quran imported by Federal or Provincial Governments and Nashiran-e-Quran as 4810.1910 and 4802.6990]
per quota determined by IOCO
i Added vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
ii Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
iii Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1087 Sr. Nos. 138 to 142 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 138 and 142 was as under:
138. Fish Feed Respective heading
139. Fans for dairy farms 8414.5990
140. Bovine semen 0511.1000
141. Preparations for making animal feed 2309.9000

[184]
*** *** ***
*** *** ***
*** *** ***
*** *** ***]
143. (i) Hearing aids (all types and kinds) (ii) Hearing assessment 9937
equipment;
(a) Audiometers
(b) Tympanometer
(c) ABR
(d) Oto Acoustic Omission
144. Liquefied Natural Gas imported by fertilizer manufacturers for use 2711.1100
as feed stock
145. Plant, machinery, equipment including dumpers and special purpose Respective heading
motor vehicles, if not manufactured locally, imported by M/s China
State Construction Engineering Corporation Limited (M/s
CSCECL) for the construction of Karachi - Peshawar Motorway
(Sukkur - Multan Section) and M/s China Communication
Construction Company (M/s CCCC) for the construction of
Karakorum Highway (KKH) Phase-II (Thakot - Havellian Section)
subject to the following conditions:
(i) that the exemption under this serial number shall only be
available to contractors named above;
(ii) that the equipment and construction machinery imported under
this serial number shall only be used for the construction of the
respective allocated projects;
(iii) that the importer shall furnish an indemnity bond, in the
prescribed manner and format as set out in Annex-A, at the
time of import to the extent of sales tax exempted under this
serial number on consignment to consignment basis;
(iv) that the Ministry of Communications shall certify in the
prescribed manner and format as set out in Annex-B that the
imported equipment and construction machinery are bona fide
requirement for construction of Sukkur - Multan Section (392.0
km) of Karachi – Peshawar Motorway or for the construction of
Karakorum Highway(KKH) Phase-II - Thakot to Havellian
Section (118.057 km) as the case may be;
(v) for the clearance of imported goods through Pakistan Customs
Computerized System the authorized officer of the Ministry
shall furnish all relevant information, as set out in Annex-B,
online against a specific user ID and password obtained under
section 155D of the Customs Act, 1969 (IV of 1969). In
Collectorates or Customs stations where the Pakistan Customs
Computerized System is not operational, the Director Reforms
and Automation or any other person authorized by the Collector
in this behalf shall enter the requisite information in the
Pakistan Customs Computerized System on daily basis,
whereas entry of the data obtained from the customs stations

142. Promotional and advertising material including technical literature, pamphlets, brochures 9920(3)”
and other give-aways of no commercial value, distributed free of cost by the exhibitors

[185]
 which have not yet been computerized shall be made on weekly
basis;
(vi) that the equipment and construction machinery, imported under
this serial number, shall not be re-exported, sold or otherwise
disposed of without prior approval of the FBR. In case goods
are sold or otherwise disposed of with prior approval of FBR
the same shall be subject to payment of sales tax as may be
prescribed by the FBR;
(vii) in case the equipment and construction machinery, imported
under this serial number, is sold or otherwise disposed of
without prior approval of the FBR in terms of para (vi) above,
the same shall be subject to payment of statutory rates of sales
tax as were applicable at the time of import;
(viii) notwithstanding the condition at para (vi) and (vii) above,
equipment and construction machinery, imported under this
serial number, may be surrendered at any time to the Collector
of Customs having jurisdiction, without payment of any sales
tax, for further disposal as may be prescribed by the FBR;
(ix) the indemnity bond submitted in terms of para (iii) above by the
importer shall be discharged on the fulfillment of conditions
stipulated at para (vi) or (vii) or (viii) above, as the case may
be; and
(x) that violation of any of the above mentioned conditions shall
render the goods liable to payment of statutory rate of sales tax
leviable on the date of clearance of goods in addition to any
other penal action under relevant provisions of the law.
1088
[*** *** ***]

1088 Sr. No. 146 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 146 was as under:

[186]
146. Respective heading
147. Goods supplied to German Development Agency (Deutsche Respective heading
Gesellschaft für Internationale Zusammenarbeit) GIZ
148. Imported construction materials and goods imported by M/s China Respective heading
State Construction Engineering Corporation Limited (M/s
CSCECL), whether or not locally manufactured, for construction of
Karachi-Peshawar Motorway (Sukkur-Multan Section) subject to
fulfilment of same conditions, limitations and restrictions as are

“146. Equipment imported by M/s China Railway Corporation to be furnished and installed in Lahore Respective
Orange Line Metro Train Project subject to the following conditions: headings”
(a) that the equipment imported under this serial number shall only be used in the aforesaid
Project;
(b) that the importer shall furnish an indemnity bond, in the prescribed manner and format as
set out in Annex-C to this serial number, at the time of import to the extent of sales tax
exempted under this serial number on consignment to consignment basis;
(c) that the Punjab Mass Transit Authority, established under the Punjab Mass Transit
Authority Act, 2015 (ACT XXXIII of 2015), hereinafter referred as the Regulatory Authority,
shall certify in the prescribed manner and format as set out in Annex-D to this serial number
that the imported equipment is bona fide requirement of the Project under the Contract No.
PMA-CR-NORINCO-OL, dated 20-04-2015, hereafter referred as the contract, signed
between the Regulatory Authority and CR-NORINCO;
(d) in the event a dispute arises whether any item is entitled to exemption under this serial
number, the item shall be immediately released by the Customs Department against a
corporate guarantee, valid for a period of six months, submitted by the importer. A
certificate from the Regulatory Authority duly verified by the Transport and Communication
Section of the Ministry of Planning, Development and Reform, that the item is covered under
this serial number shall be given due consideration by the Customs Department towards
finally resolving the dispute;
(e) for the clearance of imported equipment through Pakistan Customs Computerized System the
authorized officer of the Regulatory Authority shall furnish all relevant information, as set
out in Annex-D to this serial number, online against a specific user ID and password
obtained under section 155D of the Customs Act, 1969 (IV of 1969). In Collectorates or
Customs stations where the Pakistan Customs Computerized System is not operational, the
Director Reforms and Automation or any other person authorized by the Collector in this
behalf shall enter the requisite information in the Pakistan Customs Computerized System on
daily basis, whereas entry of the data obtained from the customs stations which have not yet
been computerized shall be made on weekly basis;
(f) that the equipment, imported under this serial number, shall not be re-exported, sold or
otherwise disposed of without prior approval of the Federal Board of Revenue (FBR). In
case goods are sold or otherwise disposed of with prior approval of FBR the same shall be
subject to payment of sales tax as may be prescribed by the FBR;
(g) in case the equipment, imported under this serial number, is sold or otherwise disposed of
without prior approval of the FBR in terms of condition (f), the same shall be subject to
payment of statutory rates of sales tax as were applicable at the time of import;
(h) notwithstanding the condition (f) and (g), equipment imported under this serial number may
be surrendered at any time to the Collector of Customs having jurisdiction, without payment
of any sales tax, for further disposal as may be prescribed by the FBR;
(i) the indemnity bond submitted in terms of condition (b) above shall stand discharged on
submission of a certificate from the Regulatory Authority to the effect that the equipment has
been installed or consumed in the said Project. In case the equipment is not consumed or
installed in the project the indemnity bond shall be discharged on fulfillment of conditions
stipulated at (f) or (g) or (h), as the case may be; and
(j) that violation of any of the above conditions shall render the goods liable to payment of
statutory rate of sales tax leviable on the date of clearance of goods in addition to any other
penal action under relevant provisions of the law.
Explanation.-For the purpose of this provision, “equipment” shall mean machinery, apparatus,
materials and all things to be provided under the contract for incorporation in the works relating to
Lahore Orange Line Metro Train Project.

[187]
 specified under S. No. 145 of this table, provided that total
incidence of exemptions of all duties and taxes in respect of
construction materials and goods imported for the project shall not
exceed ten thousand eight hundred ninety-eight million rupees
including the benefit of exemption from duties and taxes availed
before 30th June, 2018 under the provisions of the Sales Tax Act,
1990, the Customs Act, 1969, the Federal Excise Act, 2005 and the
Income Tax Ordinance, 2001 and Notifications issued thereunder;
1089
[*** *** ***
*** *** ***]
1090
[*** *** ***]
152. Supplies of electricity, as made from the day of assent to the 2716.0000
Constitution (Twenty-fifth Amendment) Act, 2018, till 1091[ 1092[30th
June, 1093[2026]], to all residential and commercial consumers in
tribal areas, and to such industries in the tribal areas which were set
and started their industrial production before 31st May, 2018, but
excluding steel and ghee or cooking oil industries
1094
[*** *** ***]

1089 Sr. Nos. 149 and 150 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 116 and 117 was as under:
“149 Micro feeder equipment 8437.8000
150 Plant and machinery excluding consumer durable Chapters 84
goods and office equipment as imported by greenfield industries, intending to and 85”
manufacture taxable goods, during their construction and
installation period subject to conditions noted below and issuance of exemption
certificate by the Commissioner Inland Revenue having jurisdiction:-
Conditions:
(a) the importer is registered under the Act on or after the first day of July,
2019; and
(b) the industry is not established by splitting up or reconstruction or
reconstitution of an undertaking already in existence or by transfer of
machinery or plant from another industrial undertaking in Pakistan
1090 Sr. No. 151 was omitted vide Finance Act, 2025 dated 29th June, 2025. At the time of omission S. No. 151 was as
under:
“151 (a) Supplies; and Respective
(b) imports of plant, machinery, equipment for installation in tribal areas and of industrial heading”
inputs by the industries located in the tribal areas, as defined in the Constitution of Islamic
Republic of Pakistan,- as made till 30th June, 2025, to which the provisions of the Act or the
notifications issued thereunder, would have not applied had Article 247 of the Constitution not
been omitted under the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018):
Provided that, in case of imports, the same shall be allowed clearance by the Customs
authorities on presentation of a pay order for the amount of sales tax payable under the Sales
Tax Act, 1990, and the same shall be returned to the importer after presentation, within six
months, of a consumption or installation certificate, as the case may be, in respect of goods
imported as issued by the Commissioner Inland Revenue having jurisdiction:
Provided further that if plant, machinery and equipment, on which exemption is
availed under this serial number, is transferred or supplied outside the tribal areas, the tax
exempted shall be paid at applicable rate on residual value
1091 Substituted the words “30th June, 2023” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1092 Substituted the words “30th June, 2024” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
1093 Substituted the figure “2025” vide the Finance Act, 2025, dated 29th June, 2025
1094 Sr. No. 153 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr.
No. 153 was as under:-
“153 Steel billets, ingots, ship plates, bars and other long re-rolled profiles, on such imports and Respective
supplies by the manufacturer on which federal excise duty is payable in sales tax mode headings

[188]
1095
[154Dietetic foods intended for consumption by children suffering from Respective headings.
inherent metabolic disorder subject to the conditions that the
importer shall acquire approval and quota from Ministry of National
Health Services, Regulations and Coordination.
1096
[*** *** ***]
1097
[156. Import of CKD kits by local manufacturers of following Electric Respective heading]
Vehicles:-
(i) Road Tractors for semitrailers (Electric Prime Movers)
(ii) Electric Buses
(iii) Three Wheeler Electric Rickshaw
(iv) Three Wheeler Electric Loader
(v) Electric Trucks
(vi) Electric Motorcycle
1098
[157. Import of CKD (in kit form) of following electric vehicles (4 Respective headings
wheelers) by local manufacturers till 30th June, 2026:
(i) Small cars/SUVs with 50 Kwh battery or below; and
(ii) Light commercial vehicles (LCVs) with 150 kwh battery or
below
1099
[*** *** ***]
1100
[*** *** ***
*** *** ***]
161. Import of plant, machinery, equipment and raw materials for Respective headings
consumption of these items within Special Technology Zone by the
Special Technology Zone Authority, zone developers and zone
enterprises
162. Import of raw materials, components, parts and plant and machinery Respective headings]

1095 Added vide the Finance Act, 2020 (XIX of 2020) assented on 30th June, 2020
1096 Sr. No. 155 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 155 was as under:
“155 Oil cake and other solid residues, whether or not ground or in the form of pellets 2306.1000”
1097 Sr. No. 156 was substituted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
At the time of substitution Sr. No. 156 was as under:
“156 Import of CKD kits by local manufacturers of following Electric Vehicles:–
(i) Road Tractors for semi-trailers (Electric Prime Movers) 8701.2060
(ii) Electric Buses 8702.4090
(iii) Three Wheeler Electric Rickshaw 8703.8030
(iv) Three Wheeler Electric Loader 8704.9030
(v) Electric Trucks 8704.9059
(vi) Electric Motorcycle 8711.6090”
1098 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1099 Sr. No. 158 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 158 was as under:
“158 Goods temporarily imported into Pakistan by International Athletes which shall be Respective
subsequently taken by them within 120 days of temporary import headings”
1100 Sr. Nos. 159 and 160 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of
omission Sr. Nos. 159 and 160 was as under:-
“159. Import of auto disable Syringes till 31st December, 2021
(i) with needles 9018.3110
(ii) without needles 9018.3120
160. Import of following raw materials for the manufacturers of auto disable syringes till 31st
December, 2021]
(i) Tubular metal needles 9018.3200
(ii) Rubber Gaskets 4016.9310”

[189]
 by registered persons authorized under Export Facilitation Scheme,
2021 notified by the Board with such conditions, limitations and
restrictions.”;
1101
[163. Goods imported by various agencies of the United Nations, 99.01, 99.02, 99.03 and
diplomats, diplomatic missions, privileged persons and privileged 99.06
organizations which are covered under various Acts and, Orders,
rules and regulations made thereunder; and agreements by the
Federal Government:
Provided that such goods are charged to zero-rate of
customs duty under the Customs Act, 1969 (IV of 1969), and the
conditions laid therein.
Provided further that exemption under this serial shall be
available with effect from the 15th day of January, 2022.
1102
[*** *** ***]
165 Goods imported by or donated to hospitals run by the non-profit 99.13 and 99.14,
making institutions subject to the similar restrictions, limitations,
conditions and procedures as are envisaged for the purpose of
applying zero-rate of customs duty on such goods under the
Customs Act, 1969, (IV of 1969).
166 Goods excluding electricity and natural gas supplied to hospitals run Respective headings
by the charitable hospitals of fifty beds or more.
167 Goods temporarily imported into Pakistan, meant for subsequent 99.19, 99.20 and 99.21
exportation charged to zero-rate of customs duty subject to the
similar restrictions, limitations, conditions and procedures as are
envisaged for the purpose of applying zero-rate of customs duty on
such goods under the Customs Act, 1969 (IV of 1969).
168 Fertilizers 1103[excluding DAP] Respective headings
1104
[*** *** ***]
1105
[*** *** ***]
171 Seeds for sowing Respective heading
172 Machinery, equipment and materials imported either for exclusive Respective headings
use within the limits of Export Processing Zone or for making
exports therefrom, and goods imported for warehousing purpose in
Export Processing Zone, subject to the conditions that such
machinery, equipment, materials and goods are imported by
investors of Export Processing Zones, and all the procedures,
limitations and restrictions as are applicable on such goods under

1101 Inserted vide the Finance Act, 2022 dated on 30th June, 2022
1102 Sr. No. 164 was omitted vide Finance Act, 2025 dated 29th June, 2025. At the time of omission S. No. 164 was as
under:
“161 Photovoltaic cells whether or not assembled in modules or made up into panels 8541.4200
and
8541.4300
1103 Added vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023.
1104 Sr. No. 169 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 169
was as under:
169 Oil cake and other solid residues 2306.1000
1105 Sr. No. 170 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 170
was as under:
170 Tractor 8701.9220 and
8701.9320

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 the Customs Act, 1969 (IV of 1969) and rules made thereunder shall
mutatis mutandis, apply.
173 Goods produced or manufactured in and exported from Pakistan Respective headings
which are subsequently imported in Pakistan within one year of
their exportation, provided conditions of section 22 of the Customs
Act, 1969 (IV of 1969), are complied with.
1106
[*** *** ***]
1107
[175. Import of all goods received, in the event of a natural disaster or 9908(i) and 9911.”.
other catastrophe, as gifts and relief consignments or any goods
received as gift or donation from a foreign government or
organization by the Federal or Provincial Governments or any
public sector organization.
Subject to the recommendations of the Minister Incharge and
concurrence by the Federal Board of Revenue subject to condition
that the concerned Ministry shall verify the genuineness of such
cases and furnish an undertaking to the effect that donated goods
shall not be sold, utilized or disposed of otherwise than for the
purpose for which the same have been imported.
176. POL products:
(i) MS (Petrol) 2710.1210,
(ii) High Speed Diesel Oil 2710.1931,
(iii) Kerosene 2710.1911 and
(iv) Light Diesel Oil 2710.1921
177. Supply of electricity to Azad Jammu and Kashmir Respective headings
178. Import of gold under entrustment scheme under SRO 760(I)/2013 Respective heading
1108
179. Import of cystagon, cysta drops and trientine capsules [***] 3004.9099
180. Bovine semen 0511.1000.]
1109
[181 Import or lease of aircrafts and parts thereof by Pakistan 8802.1200, 8802.3000,
International Airlines Corporation Limited (PIACL) 8802.4000]
1110
[Annex-A
[See condition 145(iii)]
INDEMNITY BOND
(On appropriately stamped non-judicial paper)
THIS DEED OF INDEMNITY is made on the _________ date of __________BETWEEN
Messrs___________ having registered office at _________(hereinafter called “the importers” which
means and includes their successors, administrators, executors and assignees) of the one part, AND the
President of Pakistan through the Collector of Customs _________ (hereinafter called the “Collector of
Customs”), of the other part.
WHEREAS the Federal Government, by its decision contained in serial number 145 or serial
number 148 of this table, as the case may be, and subject to the conditions given in the said serial number

1106 Sr. No. 174 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 174
was as under:
174 Machinery and equipment as listed at serial number 32 of the Table of Part-I of Respective headings.]
Fifth Schedule to the Customs Act, 1969 (IV of 1969), subject to the conditions,
limitations and restrictions specified thereunder.
1107 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
1108 Omitted the word “capsules” vide the Finance Act, 2025, dated 29th June, 2025
1109 Inserted vide Finance Act, 2025 dated 29th June, 2005
1110 Added vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018

[191]
145 or serial number 148 of this table, as the case may be, has been pleased to direct that such equipment
and construction machinery, as are not manufactured locally, shall be exempt from the whole of sales tax
leviable thereon, in accordance with the said serial number 145 or serial number 148 of this table, as the
case may be, if imported for:-
(i) construction of Sukkur - Multan Section (392.0 km) of Karachi - Peshawar Motorway or
(ii) for the construction of Karakorum Highway (KKH) Phase-II - Thakot to Havellian
Section (118.057 km).
AND WHEREAS M/S.____________ having registered office at __________ (hereinafter called
the importers) have imported the equipment and/or construction machinery mentioned in the said serial
number 145 or serial number 148 for purposes of construction of above mentioned project(s) in
accordance with the conditions given in the said serial number 145 or serial number 148 of this table, as
the case may be;
NOW, THEREFORE, in consideration of the release of the equipment and/or construction
machinery without recovery of leviable sales tax, the importers bind themselves to pay on demand to the
Government of Pakistan the sum of Rs. __________ being the sales tax and charges leviable on the
machinery, if the importers fail to fulfill the condition (vi) or (vii) or (viii) of the said serial number 145
or serial number 148 of this table, as the case may be.
The importers further agree and bind themselves that the amount covered by this Bond shall be
recovered as arrears of sales tax under section 202 of the Customs Act, 1969. This Bond shall become
void when the Collector of Customs is satisfied that the importers have fulfilled all the conditions of the
said serial number 145 or serial number 148 of this table, as the case may be.
Signed by importers on this _______________ day of __________201 .

Managing Director
(Name and permanent address)
Collector of Customs
(On behalf of President)
Witness _________________________________________________________
(signature, name, designation and full address)
Witness_________________________________________________________
(signature, name, designation and full address)
Note:-The bond shall be written on appropriate non-judicial stamp paper and shall be witnessed
by a Government servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a
Schedule Bank.
Annex-B
[See condition 145 (iv) and (v)]
NTN or FTN of Importer Approval No.
(I) (II)
Details of input goods (to be filled by the authorized officer of the Regulatory Authority) to be
imported
Description and Quantity/UOM L/C No. or bank IGM No. Date & Remarks, if any.
specifications. contract No. and Index No.
B/L.

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 (1) (2) (3) (4) (5)
CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY AUTHORITY:
It is hereby certified that the description, quantity and other details mentioned above are true and
correct. Goods imported are in commensuration with the project requirement and are bona fide
requirement of the project. It is further certified that the above items shall not be used for any other
purpose except for the project.
Signature: ________________________
Name & Designation: ________________________
Official Stamp: ________________________
Date: ________________________
Note:-For the purposes of this serial number 145, the expression “not manufactured locally” shall
mean the goods which are not listed in the locally manufactured items in the Customs General Order
issued by the Federal Board of Revenue from time to time.
Annex-C
[See condition 146(b)]
INDEMNITY BOND
(On appropriately stamp non-judicial paper attested by a Government servant in BPS 17 or above,
an Oath Commissioner, a Notary Public or an officer of a Scheduled Bank)
THIS DEED OF INDEMNITY is made on the _________ date of __________BETWEEN
Messrs___________ having registered office at _________ (hereinafter called “the importers” which
means and includes their successors, administrators, executors and assignees) of the one part, AND the
President of the Islamic Republic of Pakistan through the Collector of Customs _________ (hereinafter
called the “Collector of Customs”), of the other part.
WHEREAS the Federal Government, by its decision contained in serial number 146 and subject
to the conditions given in the said serial number 146, has been pleased to direct that such equipment shall
be exempt from the whole of sales tax leviable thereon, in accordance with the said serial number 146, if
imported for Lahore Orange Line Metro Train Project.
AND WHEREAS M/S.____________, the importers have imported the equipment mentioned in
the said serial number 146 for the above mentioned project in accordance with the conditions given in the
said serial number 146;
NOW, THEREFORE, in consideration of the release of the equipment without recovery of
leviable sales tax, the importers bind themselves to pay on demand to the Government of Pakistan the
sum of Rs. __________ being the sales tax and charges leviable on the equipment, if the importers fail to
fulfill the condition (f) or (g) or (h) of the said serial number 146, as the case may be.
The importers further agree and bind themselves that the amount covered by this Indemnity Bond
shall be recovered as arrears of sales tax under section 202 of the Customs Act, 1969. This Bond shall
stand revoked automatically when the Collector of Customs is satisfied that the importers have fulfilled
all the conditions of the said serial number 146.
Signed by importers on this _________ day of ___________201 .
Managing Director or person next in hierarchy duly authorized by MD

(Name and permanent address)

Collector of Customs

[193]
 (On behalf of President)
Witness (1)________________________________________________________
(signature, name, designation and full address)
Witness (2)________________________________________________________
(signature, name, designation and full address)
Annex-D
[See conditions 146 (c) and (e)]
NTN or FTN of Importer Approval No.
(I) (II)
Details of equipment (to be filled by the authorized officer of the Regulatory Authority) to be
imported
Description and Quantity/UOM L/C No. or bank IGM No. Date & Remarks, if
specifications. contract No. and B/L. Index No. any.
(1) (2) (3) (4) (5)
CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY AUTHORITY:
It is hereby certified that the description, quantity and other details mentioned above are true and
correct. Goods imported are in commensuration with the project requirements and are bona fide
requirement of the Project under the Contract. It is further certified that the above items shall not be used
for any other purpose except for the Project.
Signature: ________________________
Name and Designation: ________________________
Official Stamp: ________________________
Date: ________________________]
1111
[Annex-I
Header Information
NTN/FTN of Importer Approval No.
(1) (2)
Details of materials and equipments (to be filled in by the Goods imported (Collectorate of import)
authorized officer of the Ministry of Ports and Shipping)
Date of CRN/ Mach
Quantity imported
Customs duty rate

CRN / Mach No.

Rate of sales tax

Collector ate
(applicable)
Description

Quantity
HS code

Specs

UOM
WHT

No.

NOTE 1.- Before certifying, the authorized officer of the Ministry of Ports and Shipping shall
ensure that the goods are genuine and bona fide requirement for construction and
operation of Gwadar Port and development of Free Zone for Gwadar Port.
Signature ___________________________

1111 Added vide the Finance Act, 2016

[194]
Designation ___________________________
NOTE 2.- In case of clearance through Pakistan Customs Computerized System, the above
information shall be furnished online against a specific user I.D. and password obtained
under section 155D of the Customs Act, 1969 (IV of 1969)”;]

TABLE-2
(LOCAL SUPPLIES ONLY)

Serial Description Heading Nos.

No.
(1) (2) (3)
1112
[*** *** ***
*** *** ***]
1113 1114
[3. [Supplies made by cottage industry.] Respective headings.
1115
[*** *** ***]
1116
[ *** ]
6. Supply of fixed assets against which input tax adjustment Respective headings.
is not available under a notification issued in terms of
clause (b) of sub-section (1) of section 8 of the Sales Tax
Act, 1990.
1117
[*** *** ***]
8. Foodstuff cooked or prepared in-house and served in Respective headings.
messes run on the basis of mutuality and industrial
canteens for workers.

1112 Sr. Nos. 1 and 2 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
At the time of omission S. Nos. 1 and 2 was as under:
“1. Supply of cotton seed exclusively meant for sowing purposes, subject to such conditions as, the Board 1207.2000.
may specify.
2. Supply of locally produced crude vegetable oil obtained from the locally produced seeds other than Respective
cotton seed], except cooking oil, without having undergone any process except the process of headings.”
washing.
1113 S. No. 3 was substituted effective from 10th June, 2007 vide the Finance Act, 2007 (IV of 2007) assented on 30th June,
2007 read with declaration made with Finance Bill. 2007. At the time of substitution it was as under:-
“3 Supplies made by (a) manufacturers whose annual turnover from taxable supplies made in any tax period
during the -last twelve months ending any tax period does not exceed rupees five million; and (b) retailers
whose annual turnover from supplies, whether taxable or otherwise made in any tax period during the last
twelve months ending any tax period does not exceed rupees five million”
1114 Substituted for the entry in column (2) Supplies made by (a) cottage industry; and (b) 'retailers whose annual turnover
from supplies, whether taxable or otherwise, made in any tax period during the last twelve months ending any tax
period does not exceed rupees five million vide the Finance Act, 2014
1115 Sr. No. 4 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission S. No. 4 was as under:
“4. Raw material' and intermediary goods manufactured or produced and services provided or rendered, Respective
by a registered person, consumed in-house for the manufacture of goods subject to sales tax headings.”
1116 S. No.5 was omitted vide the Finance Act, 2011 (XVI of 2011) assented on 29th June, 2011. Before omission S. NO.5
was as under:--
“5 Supply of other such agricultural implements as may be specified in a notification to be issued vide the
Federal Government in the official Gazette.”
1117 Sr. No. 7 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 7 was
as under:
7. Vermicillies, sheer mal, bun and rusk excluding those sold in bakeries and sweet Respective heading
shops falling in the category of Tier-1 retailers.

[195]
1118
[*** *** ***]
10. Agricultural produce are Pakistan not subjected any Respective headings
further Process manufacture
1119
[*** *** ***]
1120
[ *** ]
1121
[*** ***
*** ]
1122
[*** *** ***
*** *** ***]
1123
[*** *** ***
*** *** ***
*** *** ***
*** *** ***]
1124
[*** *** ***]
1125
[*** *** ***

1118 Sr. No. 9 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission S. No. 9 was as under:
“9. Foodstuff and other eatables prepared in the flight kitchens and supplied for Respective headings”
consumption on-board in local flights.
1119 Serial number 11 was omitted vide Finance Act, 2012. At the time of omission Serial number 11were as under:-
“11. Supply of ware potato and onions. 0701.9000 and 0703.1000.”
1119 Added vide Finance Act, 2015
1120 Serial number 12 in column (1) and the entries relating thereto in columns (2) and (3) were omitted vide the Finance
Act, 2013 (XXII of 2013)], assented on 29th June, 2013. At the time of omission Serial number 12 was as under:--
ss-cxi
[12 Supplies against international tender Respective headings
[ss-cxi S. No. 12 and the entries relating thereto were added vide the Finance Act, 2012 effective from 2nd June,
2012
1121 Serial number 13, 14 were omitted vide Finance Act, 2015. At the time of omission Serial number 13, 14 were as
under:-
13 Reclaimed lead, if supplied to recognized manufacturers of lead batteries Respective headings
14 Waste paper Respective headings
1121 Added vide Finance Act, 2015
1122 Sr. Nos. 15 and 16 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 15 and 16 was as under:
15 (a) Sprinkler Equipment Respective headings
(b) Drip Equipment
(c) Spray Pumps and nozzles
16 Raw cotton Respective headings”
1123 Sr. Nos. 17, 18, 19 and 20 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of
omission Sr. Nos. 17, 18, 19 and 20 was as under:-
“17. Raw and pickled hides and skins, wet blue hides and skins 41.01, 41.02, 41.03, 4104.1000, 4105.1000,
4106.2100, 4106.3000, 4106.9000
18. Supplies made by manufacturers of marble and granite having Respective headings
annual turnover less than five million rupees even if their
annual utility bill is more than eight hundred thousand rupees
19 Bricks (up to 30th June, 2018) 6901.1000
20 Crushed stone (up to 30th June, 2018) 2517.1000”
1124 Sr. No. 21 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 21
was as under:
21 Poultry feed, cattle feed, sunflower seed meal, seed meal and canola 2306.3000, 2306.4900, and
seed meal Respective headings
1125 Sr. Nos. 22 and 23 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 22 and 23 was as under:
22. Single cylinder agriculture diesel engines (compression-ignition internal combustion 8408.9000.
piston engines) of 3 to 36 HP.

[196]
 *** *** ***]
1126
[*** *** ***
*** *** ***]
1127
[26. Supply of locally produced silos till 30.06.2026 Respective heading
1128
27. Wheat Bran [ This exemption shall apply from the 1st 2302.3000
day of July, 2018]
28. Sugar beet 1212.9100
29. Fruit juices, whether fresh, frozen or otherwise preserved 2009.1100, 2009.1200, 2009.1900,
but excluding those bottled, canned or packaged. 2009.2100, 2009.2900, 2009.3100,
2009.3900, 2009.4100, 2009.4900,
2009.5000, 2009.6100, 2009.6900,
2009.7100, 2009.7900, and
2009.9000
30. Milk and cream, concentrated or containing added sugar 04.02
or other sweetening matter, excluding that sold in retail
packing under a brand name
31. Flavored milk, excluding that sold in retail packing under 0402.9900
a brand name
1129 1130
32. Yogurt, excluding that sold [***] under a brand name [Respective heading]
1131
[*** *** ***]
1132
34. Butter, excluding that sold [***] under a brand name 0405.1000
1133
35. Desi ghee, excluding that sold [***] under a brand 0405.9000
name
1134
36. Cheese, excluding that sold [***] under a brand name 0406.1010
37. Processed cheese not grated or powdered, excluding that 0406.3000
1135
sold [***] under a brand name
1136
[*** *** ***]
1137
39. Products of meat or meat offal excluding sold [***] 1602.3200, 1602.3900, 1602.5000,
under a brand name or trademark 1604.1100, 1604.1200, 1604.1300,

23 Match boxes Respective

headings”
1126 Sr. Nos. 24 and 25 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of
omission Sr. Nos. 24 and 25 was as under:-
“24 LED or SMD lights and bulbs meant for conservation of energy. 8539.5010, 8539.5020, 9405.1030 and
9405.4020;
25 Cottonseed oil 1512.2100 and 1512.2900”
1127 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1128 Added vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023.
1129 Omitted the words “in retail packing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1130 Substituted the PCT Code “0403.1000” vide the Finance Act, 2022 dated on 30th June, 2022
1131 Sr. No. 33 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 33 was as under:
“33. Whey, excluding that sold in retail packing under a brand name 04.04
1132 Omitted the words “in retail packing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1133 Omitted the words “in retail packing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1134 Omitted the words “in retail packing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1135 Omitted the words “in retail packing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1136 Sr. No. 38 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 38 was as under:
“38. Sausages and similar products of poultry meat or meat offal excluding sold in retail 1601.0000
packing under a brand name or trademark

[197]
 1604.1400, 1604.1500, 1604.1600,
1604.1900, 1604.2010, 1604.2020
and1604.2090.]
1138
[40. Live Animals and live poultry Respective headings
41. Meat of bovine animals, sheep, goat and uncooked Respective headings
poultry meat excluding those sold 1139[***] under a brand
name
42. Fish and crustaceans excluding those sold 1140[***] under Respective headings
a brand name
43. Live plants including bulbs, roots and the like 0601.1010, 0601.1090, 0601.2000,
0602.1000, 0602.2000, 0602.3000,
0602.4000, 0602.9010 and
0602.9090
44. Cereals other than rice, wheat, wheat and meslin flour Respective headings
1141
[45. Edible vegetables including roots and tubers whether Respective heading]
fresh, frozen or otherwise reserved (e.g. in cold storage)
but excluding those bottled or canned.
46. Edible fruits Respective headings
47. Sugar cane 1212.9300
48. Eggs including eggs for hatching 0407.1100, 0407.1900 0407.2100
and 0407.2900
49. Compost (non-commercial fertilizer) Respective headings
50. Locally manufactured laptops, computers, notebooks 8471.3010 and 8471.3020
whether or not incorporating multimedia kit and personal
computers
51. Newspaper Respective headings]
1142
[52. Raw hides and skins Respective headings
53. Prepared food or foodstuff supplied by Restaurants and Respective heading
caterers
54. All types of breads, nans and chapattis Respective headings.]
1143
[55. Single cylinder agriculture diesel engines (compression Respective headings.]
ignition internal combustion piston engines) of 3 to 36
RP.
1144
[56. Milk excluding: 04.01

1137 Omitted the words “in retail packing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1138 Added vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
1139 Omitted the words “in retail packing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1140 Omitted the words “in retail packing” vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023
1141 Sr. No. 45 was substituted vide the Finance Act, 2022 dated 30th June, 2022. At the time of substitution S. No. 45 was
as under:
“45. Edible vegetables including roots and 0701.1000, 0702.0000, 0703.2000, 0703.9000, 0704.1000,
tubers, except ware potato and onions, 0704.2000, 0704.9000, 0705.1100, 0705.1900, 0705.2100,
whether fresh, frozen or otherwise 0705.2900, 0706.1000, 0706.9000, 0707.0000, 0708.1000,
preserved (e.g. in cold storage) but 0708.2000, 0708.9000, 0709.1000, 0709.2000, 0709.3000,
excluding those bottled or canned. 0709.4000, 0709.5100, 0709.5910, 0709.5990, 0709.6000,
0709.7000, 0709.9000, 0710.1000, 0710.2100, 0710.2200,
0710.2900, 0710.3000, 0710.4000, 0710.8000, 0710.9000,
0712.2000, 0712.3100, 0712.3200, 0712.3300, 0712.3900 and
0712.9000”
1142 Added vide the Finance Act, 2022 dated on 30th June, 2022
1143 Added vide the Tax Laws (Second Amendment) Ordinance, 2022 (Ordinance No. VI of 2022), dated 23rd August, 2022
1144 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

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 (i) that sold under a brand name; or
(ii) supplied by corporate dairy farms
1145
57. [Iron and steel scrap excluding:– 7204.4100, 7204.3000,
(a) supplied by manufacturer cum-exporter of recycled 7204.4990.]
copper, authorized under Export Facilitation
Scheme, 2021 directly supplied to a registered steel
melter subject to such apportionment, conditions and
restrictions as may be specified by the Board
through a Sales Tax General Order; and
(b) supplied directly by the importer (verifiable from the
goods declaration form) to a registered steel melter
subject to such apportionment, conditions and
restrictions as may be specified by the Board
through a Sales Tax General Order.]
Notes:-1. For the purposes of this Schedule, for entries against which classification of headings or
sub-headings has been specified, exemption shall be admissible on the basis of description of goods as
mentioned in column (2) of this Schedule. PCT classification of headings is provided for ease of reference
and commodity classification purposes only.
2. For the purposes of determining classification of any goods, the general rules for
interpretation of the First Schedule to the Customs Act, 1969 (IV of 1969), and Explanatory Notes to the
Harmonized Commodity Description and Coding System (relevant version) as amended from time to time
shall be considered authentic source of interpretation.
3. For the purposes of exemption of sales tax under serial numbers 46, 47, 49, 50, 51, 52,
53, 56, 57, 59, 60 and 62 of this Schedule, the definitions, restrictions, limitations, conditions and
procedures and all the provisions of Chapter 99 of the First Schedule to the Customs Act, 1969 (IV of
1969), for the purposes of applying zero-rate of customs duty shall, mutatis mutandis, apply and shall be
deemed and construed to be part of this Schedule.]
1146
[TABLE-3
The plant, machinery, equipment and apparatus, including capital goods, specified in
column (2) of the Annexure below, falling under the HS Codes specified in column (3) of that
Annexure, shall be exempt from the whole of sales tax, subject to the following conditions,
besides the conditions specified in column (4) of the Annexure, namely:-
(i) the imported goods as are not listed in the locally manufactured items, notified through a Customs
General Order issued by the Board from time to time or, as the case may be, certified as such by
the Engineering Development Board.
(ii) except for S. No.9 and 14 1147[14A and 15] of the Annexure, the Chief Executive, or the person
next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall
certify in the prescribed manner and format as per Annex-A that the imported items are the
company's bonafide requirement. He shall furnish all relevant information online to Pakistan
Customs Computerized System against a specific user ID and password obtained under section
155D of the Customs Act, 1969. In already computerized Collectorates or Customs stations
where the Pakistan Customs Computerized System is not operational, the Project Director or any
other person authorized by the Collector in this behalf shall enter the requisite information in the

1145 Substituted the words “Iron and steel scrap excluding supplied by manufacturer-cum-exporter of recycled copper,
authorized under Export Facilitation Scheme, 2021.” vide the Finance Act, 2025, dated 29th June, 2025
1146 Added vide the Finance Act, 2014
1147 Inserted vide the Finance Act, 2017 assented on 19th June, 2017

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 Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from
the customs stations which have not yet been computerized shall be made on weekly basis; and
(iii) in case of partial shipments of machinery and equipment for setting up a plant, the importer shall,
at the time of arrival of first partial shipment, furnish complete details of the machinery,
equipment and components required for the complete plant, duly supported by the contract,
layout plan and drawings:
Explanation.-For the purpose of Table-3, capital goods mean any plant, machinery, equipment,
spares and accessories, classified in Chapters 84, 85 or any other chapter of the Pakistan Customs
Tariff, required for-
(a) the manufacture or production of any goods and includes refractory bricks and materials
required for setting lip a furnace, catalysts, machine tools, packaging machinery and
equipment, refrigeration equipment, power generating sets and equipment, instruments
for testing, research and development, quality control, pollution control and the like; or
(b) use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture,
livestock, dairy and poultry industry.
ANNEXURE
S. No. Description PCT Condition
heading
(1) (2) (3) (4)
1148
[*** *** *** ***]

1148 Sr. Nos. 1 to 9 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
At the time of omission Sr. Nos. 1 to 9 was as under:
“1. Machinery and equipment for initial installation, balancing, Respective
modernization, replacement or expansion of desalination Headings
plants, coal firing system, gas processing plants and oil and gas
field prospecting.
2. Following machinery, equipment, apparatus, and medical, a) The project requirement
surgical, dental and veterinary furniture, materials, fixtures and shall be approved by the Board of
fittings imported by hospitals and medical or diagnostic Investment (BOI). The Author-
institutes:- ized Officer of BOI shall certify
A. Medical Equipment. 9402.1010 the item wise requirement of the
1) Dentist chairs. 9402.9090 project in the prescribed format
2) Medical surgical dental or veterinary furniture. and manner as per Annex-B and
3) Operating Table. 9402.9010 shall furnish all relevant
4) Emergency Operating Lights. 9405.4090 information Online to Pakistan
5)Hospital Beds with mechanical fittings. 9402.9020 Customs Computerized System
6) Gymnasium equipment. 9506.9100 against a specific user ID and
7) Cooling Cabinet. 8418.5000 password obtained under Section
8) Refrigerated Liquid Bath. 3824.9999 155D of the Customs Act, 1969
9) Contrast Media Injections (for use in Angiography & MRI 3822.0000 (IV of 1969);
etc). (b) the goods shall not be sold
B.Cardiology / Cardiac Surgery Equipment 9018.3940 or otherwise disposed of without
1) Cannulas. 8481.8090 prior approval of the FBR and the
2) Manifolds. 9018.3940 payment of customs-duties and
3) Intra venous cannula i.v. catheter. taxes at statutory rates be leviable
C. Disposable Medical Devices 9018.3110 at the time of import. Breach of
1) Self disabling safety sterile syringes. 9018.3110 this condition shall be construed
2) Insulin syringes. as a criminal offence under the
D. Other Related Equipments 8424.1000 Customs Act, 1969 (IV of 1969).
1) Fire extinguisher. Respective
2) Fixtures & fittings for hospitals Headings
2A The following raw materials imported by registered This concession is available to
manufacturer of auto disabled syringes: registered manufacturers of auto
(1) Printing paper 4802.5510 disabled syringes with quota

[200]
 (2) Polypropylene 3902.1000 determination by IOCO and
(3) Propylene copolymers 3902.3000 subject to NOC from Ministry of
(4) Plasticized 3904.2200 National Health Services
(5) Epoxide Resins 907.3000 Regulation and Coordination.
(6) Bioxially Oriented Polypropylene (BOPP film,
laminated)
3. 1. Machinery, equipment, materials, capital goods, Respective 1. This concession shall be
specialized vehicles (4x4 non luxury) i.e. single or double Headings available to those Mineral
cabin pickups, accessories, spares, chemicals and consumables Exploration and Extraction
meant for mineral exploration phase. Companies or their authorized
operators or contractors who hold
permits, licences, leases and who
enter into agreements with the
Government of Pakistan or a
Provincial Government.
2. Construction machinery, equipment and specialized Respective 2. Temporarily imported goods
vehicles, excluding passenger vehicles, imported on temp- Headings shall be cleared against a security
orary basis as required for the exploration phase. in the form of a post-dated cheque
for the amount of sales tax, along
with an undertaking to pay the
sales tax at the statutory rate in
case such goods are not re-
exported on conclusion of the
project.
3. The goods shall not be sold or
otherwise disposed of without
prior approval of the Board and
the payment of sales tax leviable
at the time of import. These shall,
however, be allowed to be
transferred to other entitled
mining companies with prior
approval of the Board; and
4. Coal mining machinery, equipment, spares, including vehicles Respective This concession shall be available
for site use i.e. single or double cabin pick-ups and dump Headings to those mining companies or
trucks, imported for Thar Coal Field. their authorized operators or
contractors who hold permits,
licenses, leases and who enter
into agreements with the
Government of Pakistan or a
Provincial Government.
The goods shall not be sold or
otherwise disposed of without
prior approval of the Board and
the payment of customs duties
and taxes leviable at the time of
import. These shall, however, be
allowed to be transferred to other
entitled mining companies with
prior approval of the Board.

[201]
5. 1. Machinery, equipment and spares meant for initial Respective (i) This concession shall also be
installation, balancing, modernization, replacement or Headings available to primary contractors
expansion of projects for power generation through oil, gas, of the project upon fulfillment of
coals wind and wave energy including under construction the following conditions,
projects, which entered into an implementation agreement with namely:-
the Government of Pakistan. (a) the contractor shall
2. Construction machinery, equipment and specialized submit a copy of the contract or
vehicles, excluding passenger vehicles, imported on temporary agreement under which he
basis as required for the construction of project. intends to import the goods for
the project:
(b) the Chief Executive or
head of the contracting company
shall certify in the prescribed
manner and format as per Annex-
A that the imported goods are the
projects bona tide requirement;
and
(c) the goods shall not be
sold or otherwise disposed of
without prior approval of the
FBR on payment of sales tax
leviable at the time of import;
(ii) temporarily imported goods
shall be cleared against a security
in the form or a post-dated
cheque for the differential
amount between the statutory rate
of sales tax and the amount
payable along with an
undertaking to pay the sales lax at
the statutory rates in case such
goods are not re-exported on
conclusion of the project
6. 1. Machinery, equipment and spares meant for initial Respective -do-
installation, balancing, modernization, replacement or Headings
expansion of projects for power generation through gas, coal,
hydel, and oil including under construction projects.
2. Construction machinery, equipment and specialized
vehicles, excluding passenger vehicles, imported on temporary
basis as required for the construction of project.
7. 1. Machinery, equipment and spares meant for initial Respective -do-
installation, balancing, modernization, replacement or Headings
expansion of projects for power generation through nuclear and
renewable energy sources like solar wind micro-hydel bio-
energy, ocean, waste-to-energy and hydrogen cell. This
exemption in relation to renewable energy shall remain in force
up to the 30th June, 2023.
2. Construction machinery, equipment and specialized
vehicles, excluding passenger vehicles, imported on temporary
basis as required for the construction of project.

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8. 1. Machinery and equipment meant for power transmission and Respective -do-
grid stations including under construction projects. Headings
Explanation- For the purpose of this serial number, “machinery
and equipment” shall mean,-
(a) machinery and equipment operated by power of any
description, such as used in the generation of power;
(b) apparatus, appliances, metering and testing apparatus,
mechanical and electrical control, transmission gear and
transmission tower, power transmission and distribution
cables and conductors, insulators, damper spacer and
hardware and parts thereof adapted to be used in
conjunction with the machinery and equipment as specified
in clause (a) above; and
(c) Components parts of machinery and equipment, as
specified in clauses (a) and (b) above, identifiable for use in
or with machinery imported for the project and equipment
including spares for the purposes of the project.
2. Construction machinery, equipment and specialized
vehicles, excluding pass-enger vehicles, imported on
temporary basis as required for the construction of the project.
9. Following machinery, equipment and other education and Nil
research related items imported by technical institutes, training
institutes, research institutes, schools, colleges and
universities:-
1) Quartz reactor tubes and holders designed for insertion into 7017.1010
diffusion and oxidation furnaces for production of
semiconductor wafers.
2) Other dryers. 8419.3900
3) Filtering or purifying machinery and apparatus for water. 8421.2100
4) Other filtering or purifying machinery and apparatus for 8421.2900
liquids.
5) Personal weighing machines, inclu-ding baby scales; 8423.1000
household scales.
6) Scales for continuous weighing of goods on conveyors. 8423.2000
7) Constant weighing scales and scales for discharging a 8423.3000
predetermined weight of material into a bag or container,
including hopper scales.
8) Other weighing machinery having a maximum weighing 8423.8100
capacity not exceeding 30 kg.
9) Other weighing machinery having a maximum weighing 8423.8200
capacity exceeding 30 kg but not exceeding 5,000kg.
10) Other weighing machinery. 8423.8900
11) Weighing machine weights of all kinds; parts of weighing 8423.9000
machinery of machines of heading 8423.2000 & 8423.3000.
12) Other weighing machine weights of all kinds; parts of 8423.9000
weighing machinery of machines of heading 8423.2000 &
8423.3000.
13) Networking equipments like routers, LAN bridges, hubs 8517.6970
excluding switches and repeaters.
14) Other furnaces and ovens. 8514.3000
15) Electronic balances of a sensitivity of 5 cg or better, with 9016.0010
or without weights.
16) Other balances of a sensitivity of 5 cg or better, with or 9016.0090
without weights.
17) Thermostats of a kind used in refrigerators and air- 9032.1010
conditioners.
18) Other thermostats. 9032.1090
19) Manostats. 9032.2000
20) Other instruments and apparatus hydraulic or pneumatic. 9032.8100
21) Other instruments and apparatus. 9032.8990”

[203]
1149
[*** *** *** ***]
10 Machinery, equipment, raw materials, Respective Nil
components and other capital goods for use in Headings
buildings, fittings, repairing or refitting of
ships boats or floating structures imp-orted by
Karachi Shipyard and Engineering Works
Limited.
1150
[*** *** *** ***]
12 Machinery, equipment and other project Respective 1. The Division dealing with the
related items including capital goods, for headings subject-matter of industries, shall
setting up of hotels, power generation plants, certify in the prescribed manner and
water treatment plants and other infrastructure format as per Annex-B that the
imported goods are bonafide project
related projects located in an area of 30 km
requirement. The authorized officer of

22) Parts and accessories of automatic regulating or 9032.9000

controlling instruments and apparatus.
23) Spares, accessories and reagents for scientific equipments. Respective
Headings
1149 Serial number 10 was omitted vide Finance Act, 2015. At the time of omission Serial number 10 was as under:-
10 Machinery, equipment, raw materials, components and other capital Respective Nil
goods for use in buildings, fittings, repairing or refitting of ships boats Headings
or floating structures imported by Karachi Shipyard and Engineering
Works Limited.
1150 Sr. No. 11 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 11 was as under:
11 Following machinery and equipment for marble,
granite and gem stone extraction and processing
industries:
1) Polishing cream or material. 3405.4000 1. For the projects of Gem Stone &
3405.9000 Jewelry Industry, CEO/ COO, Pakistan
2) Fiber glass mesh 7019.5190 Gem and Jewelry Company shall certify in
3) Chain saw/diamond wire saw in all sizes and 8202.4000 the prescribed format and manner as per
dimensions and spares thereof, diamond wire 8202.9100 Annex-B that the imported goods are
joints all types and dimen-sions, chain for chain bonafide project requi-rement. The
saw and diamond wires for wire saw and spare authorized person of the Company shall
widia. furnish all relevant information online to
4) Gin saw blades. 8202.9910 Pakistan Customs Computerized System
5) Gang saw blades / diamond saw blades / 8202.9990 against a specific user ID and password
multiple blades or all types and dimensions. obtained under section 155D of the
6) Air compressor (27cft and above). 8414.8010 Customs Act, 1969.
7) Machine and tool for stone work; sand 8464.9000 & 2. For the projects of Marble & Granite
blasting machines; tungsten carbide tools; Respective Industry, CEO / COO, Pakistan Stone
diamond tools & segments (all type & headings Development Company shall certify in the
dimensions), hydraulic jacking machines, prescribed format and manner as per
hydraulic manual press machines, air/hydro Annex-B that the imported goods are
pillows, compressed air rubber pipes, hydraulic bonafide project requir-ement. The
drilling machines, manual and power drilling authorized persons of the Company shall
machines, steel drill rods and spring (all sizes and furnish all relevant information online to
dimensions), whole finding system with Pakistan Customs Computerized System
accessories, manual portable rock drills, cross against a specific user ID and password
cutter and bridge cutters. obtained under section 155D of the
8) Integral drilling steel for horizontal and 8466.9100 Customs Act, 1969.
vertical drilling, extension thread rods for 3. The goods shall not be sold or otherwise
pneumatic super long drills, tools and accessories disposed of within a period of five years of
for rock drills. their import except with the prior approval
of the FBR and payment of customs duties
and taxes leviable at the time of import.

[204]
 around the zero point in Gwadar. the Ministry shall furnish all relevant
information online to Pakistan
Customs Comp-uterized System
against a specific user ID and
password obtained under section
155D of the Customs Act, 1969.
2. The goods shall not be sold or
otherwise disposed of without prior
approval of the FBR and payment of
customs duties and taxes leviable at
the time of import.
1151
[*** *** *** ***]

1151 Sr. Nos. 13 to 15B was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission Sr. Nos. 13 to 15B was as under:
“13. Effluent treatment plants Respective Nil
headings
14 Following items for use with solar energy:-
Solar Power Systems. 8501.3110
8501.3210
(1) Off–grid/On-grid solar power system (with or
without provision for USB / charging port)
comprising of :
i. PV Module. 8541.4000
ii. Charge controller. 9032.8990
iii. Batteries for specific utilization with the 8507.2090
system (not exceeding 50 Ah in case of 8507.3000
portable system). 8507.6000
iv. Essential connecting wires (with or 8544.4990
without switches).
v. Inverters (off-grid/ on-grid/ hybrid with 8504.4090
provision for direct connection/ input
renewable energy source and with
Maximum Power Point Tracking
(MPPT).
vi. Bulb holder 8536.6100
(2) Water purification plants operating on solar 8421.2100
energy.
14A Following systems and items for dedicated use
with renewable source of energy like solar, wind,
geothermal as imported on or before the 30th
June, 2023.
1. (a) Solar Parabolic Trough Power Plants. 8502.3900
(b) Parts for Solar Parabolic Power Plants.
(i). Parabolic Trough collectors modules. 8503.0010
(ii). Absorbers/Receivers tubes. 8503.0090
(iii).Steam turbine of an output exceeding 8406.8100
40MW.
(iv).Steam turbine of an output not 8406.8200
exceeding 40MW.
(v). Sun tracking control system. 8543.7090
(vi).Control panel with other accessories. 8537.1090
2. (a) Solar Dish Stirling Engine. 8412.8090
(b) Parts for Solar Dish Stirling Engine.
(i). Solar concentrating dish. 8543.7000
(ii). Sterling engine. 8543.7000
(iii). Sun tracking control system. 8543.7090
(iv). Control panel with accessories. 8406.8200
(v).Stirling Engine Generator 8501.6100

[205]
3. (a) Solar Air Conditioning Plant 8415.1090
(b) Parts for Solar Air Conditioning Plant
(i). Absorption chillers. 8418.6990
(ii). Cooling towers. 8419.8910
(iii). Pumps. 8413.3090
(iv). Air handling units. 8415.8200
(v). Fan coils units. 8415.9099
(vi). Charging & testing equipment. 9031.8000
4. (a) Solar Desalination System 8421.2100
(b) Parts for Solar Desalination System
(i). Solar photo voltaic panels. 8541.4000
(ii). Solar water pumps. 8413.3090
(iii). Deep Cycle Solar Storage batteries. 8507.2090
(iv). Charge controllers. 9032.8990
(v). Inverters (off grid/on grid/ hybrid) with 8504.4090
provision for direct connection/input
from renewable energy source and with
Maximum Power Point Tracking
(MPPT)
5. Solar Thermal Power Plants with accessories. 8502.3900
6. (a) Solar Water Heaters with accessories. 8419.1900
(b) Parts for Solar Water Heaters
(i). Insulated tank 7309.0000
7310.0000
(ii). Vacuum tubes (Glass) 7020.0090
(iii). Mounting stand Respective
headings
(iv). Copper and Aluminum tubes Respective
heading
(c) Accessories: Respective
headings
(i). Electronic controller
(ii). Assistant/ Feeding tank
(iii). Circulation Pump
(iv). Electric Heater/ Immersion Rod (one
piece with one solar water heater)
(v). Solenoid valve (one piece with one solar
water heater)
(vi). Selective coating for absorber plates
7. (a) PV Modules. 8541.4000
(b) Parts for PV Modules
(i). Solar cells. 8541.4000
(ii). Tempered Glass. 7007.2900
(iii). Aluminum frames. 7610.9000
(iv). O-Ring. 4016.9990
(v). Flux. 3810.1000
(vi). Adhesive labels. 3919.9090
(vii). Junction box & Cover. 8538.9090
(viii). Sheet mixture of Paper and plastic 3920.9900
(ix). Ribbon for PV Modules (made of silver & Respective
Lead). headings
(x). Bypass diodes. 8541.1000
(xi). EVA (Ethyl Vinyl Acetate) Sheet 3920.9900
(Chemical).
8. Solar Cell Manufacturing Equipment.
(i). Crystal (Grower) Puller (if machine). 8479.8990
(ii). Diffusion furnace. 8514.3000
(iii). Oven. 8514.3000

[206]
 (iv). Wafering machine. 8486.1000
(v). Cutting and shaping machines for silicon 8461.9000
ingot.
(vi). Solar grade polysilicon material. 3824.9999
(vii). Phosphene Gas. 2853.9000
(viii). Aluminum and silver paste. Respective
headings
9. Pyranometers and accessories for solar data 9030.8900
collection.
10.Solar chargers for charging electronic devices. 8504.4020
11.Remote control for solar charge controller. 8543.7010
12. Wind Turbines.
(a) Wind Turbines for grid connected solution 8412.8090
above 200 KW (complete system).
(b) Wind Turbines upto 200 KW for off-grid 8412.8090
solutions comprising of:
(i). Turbine with Generator/Alternator. Respective
headings
(ii). Nacelle with rotor with or without tail.
(iii). Blades.
(iv). Pole/ Tower.
(v). Inverter for use with Wind Turbine.
(vi). Deep Cycle Cell/ Battery (for use with wind 8507.2090
turbine).
13. Wind water pump 8413.8100
14. Geothermal energy equipments.
(i). Geothermal Heat Pumps. 8418.6100
(ii). Geothermal Reversible Chillers. 8418.6990
(iii). Air handlers for indoor quality control 8418.6990
equipments.
(iv). Hydronic heat pumps. 8415.8300
(v). Slim Jim heat exchangers. 8418.6100
(vi). HDPE fusion tools. 8419.5000
(vii). Geothermal energy Installation tools and 8515.8000
Equipment. 8419.8990
(viii). Dehumidification equipment. 8479.6000
(ix). Thermostats and IntelliZone. 9032.1090
15. Any other item approved by the Alternative Respective
Energy Development Board (AEDB) and headings
concurred to by the FBR.
15 Following items for promotion of renewable Nil
energy technologies or for conservation of
energy:-
(i). SMD/LED/LVD lights with or without 9405.1090
ballast, fittings and fixtures. 8539.3290
8539.5010
8539.5020
(ii). SMD/LED/LVD lights, with or without 9405.4090
ballast, PV module, fitting and fixtures 8539.3290
8539.5010
8539.5020
(iii). Tubular Day lighting Device. 9405.5010
(iv). Wind turbines including alternators and 8502.3100
mast.
(v). Solar torches. 8513.1040
(vi). Lanterns and related instruments. 8513.1090
(vii). LVD induction lamps. 8539.3290
(viii). LED Bulb/Tube lights. 8539.5010
8539.5020

[207]
1152
[*** *** *** ***]
1153
[*** *** *** ***]
18 The following parts for assembling and If imported by manufacturers
manufacturing of personal computers and and assemblers of computers and
laptops: laptops, registered with and
certified by Engineering
Development Board in

(ix). PV module, with or without, the related 8541.4000

components including invertors (off-grid/on grid/ 8504.4090
hybrid) with provision for direct connection/input 9032.8990
from renewable energy source and with 8507.0000
Maximum Power Point Tracking (MPPT), charge
controllers and solar batteries.
(x). Light emitting diodes (light emitting in 8541.5000
different colors).
(xi). Water pumps operating on solar energy 8413.7010
along with solar pump controllers 8413.7090
8504.4090
(xii). Energy saver lamps of varying voltages 8539.3110
8539.3210
(xiii). Energy Saving Tube Lights. 8539.3120
8539.3220
(xiv). Sun Tracking Control System 8543.7090
(xv). Invertors (off-grid/on grid/hybrid) with 8504.4090
provision for direct connection/input from
renewable energy source and with Maximum
Power Point Tracking (MPPT).
(xvi). Charge controller/ Current controller. 9032.8990
Provided that exemption under this serial shall be
available with effect from 01.07.2016.
15A. Parts and Components for manufacturing LED
lights:-
(i) Housing /shell. Shell cover and base Respective If imported by LED light manufacturers
cap for all kinds of LED lights and bulbs heading registered under the Sales Tax Act, 1990
(ii) Bare and stuffed Metal Clad Printed 8534. 0000 subject to annual quota determination by
Circuit Boards (MCPCB) for LED the Input Output Co-efficient
(iii) Constant Current Power Supply for of 8504.4090 Organization (IOCO)]
LED Lights and Bulbs (1-300W)
(iv) Lenses for LED lights and bulbs 9001.9000
15B CKD kits for single cylinder agriculture diesel 8408.9000 Subject to same conditions and
engines (compression-ignition internal limitations as are applicable for availing
combustion piston engines) of 3 to 36 HP. concession in customs duty on import of
such CKD kits.]”
1152 Serial number 16 was omitted vide Finance Act, 2015. At the time of omission Serial number16 was as under:-
“16 Plant, machinery, equipment and Respective The Alternative Energy Development Board (AEDB),
specific items used in production headings Islamabad shall certify in the prescribed manner and format
of bio-diesel. as per Annex-B that the imported goods arc bonafide project
requirement. The goods shall not be sold or otherwise
disposed of within a period of five years of their import
except with the prior approval of the FBR and payment of
customs duties and taxes leviable at the time of import.”
1153 Sr. No. 17 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 17 was as under:
17 Machinery, equipment, raw materials, components and other Respective heading Nil
capital goods for use in building, fittings, repairing or
refitting of ships, boats or floating structures imported by
Karachi Shipyard and Engineering Works Limited.

[208]
 accordance with quota
determined by IOCO
(i) Bare PCBs 8534.0000
(ii) Power Amplifier 8542.3300
(iii) Microprocessor/ Controllers 85.42
(iv) Equipment for SMT Manufacturing 8486.2000
(v) Laptop batteries 8506.5000
(vi) Adopters 8504.4020
(vii) Cooling fans 8414.5190
(viii) Heat sink 7616.9920
(ix) Hard Disk SSD 8471.7020
(x) RAM/ROMS 8471.7060
and
8471.7090
(xi) System on Chip/FPGA-IC 85.42
(xii) LCD / LED Screen 8528.7211
(xiii) Motherboards 8534.0000
(xiv) power supply 84.73
(xv) Optical Drives 8471.7040
(xvi) External Ports 8536.2090
(xvii) Network cards 8517.6990
(xviii) Graphic cards 8471.5000
(xix) wireless cards 8517.6970
(xx) micro phone 8518.3000
(xxi) Trackpad 8471.6020
19. Plant and machinery, except the items listed 9917(2) Nil]
under Chapter 87 of the Pakistan Customs
Tariff, imported for setting up of a Special
Economic Zone (SEZ) by zone developers
and for installation in that zone by zone
enterprises, on one time basis as prescribed
in the SEZ Act, 2012 and rules thereunder
subject to such condition, limitations and
restriction as a Federal Board of Revenue
may impose from time to time.
1154
[20 Plant and machinery for the assembly/ Respective The exemption shall be
manufacturing of electric vehicles heading admissible on one time basis for
setting up the new assembly
and/or manufacturing facility of
the vehicles and expansion in the
existing units to the extent of
electric vehicles specific plant
and machinery, duly approved/
certified and determined by the
Engineering Development Board
(EDB)”]
1155
[*** *** *** ***]

1154 Added vide the Finance Act, 2020 assented on 1st July, 2020

[209]
1156
[22. 1. Machinery, equipment and spares meant Respective (i) This concession shall also be
for initial installation, balancing, headings available to primary contractors
modernization, replacement or expansion of of the project upon fulfilment of
projects for power generation through hydel, the following conditions,
oil, gas, coal, nuclear and renewable energy namely:-
sources including under construction projects (a) the contractor shall submit a
entered into an implementation agreement copy of the contract or
with the Government of Pakistan prior to agreement under which he
15th day of January, 2022. intends to import the goods for
2. Construction machinery, equipment and the project;
specialized vehicles, excluding passenger (b) the Chief Executive or head
vehicles, imported on temporary basis as of the contracting company shall
required for the construction of project. certify in the prescribed manner
and format as per Annex-A that
the imported goods are the
projects bona fide requirement;
and
(c) the goods shall not be sold or
otherwise disposed of without
prior approval of the FBR on
payment of sales tax leviable at
the time of import;
(ii) temporarily imported goods
shall be cleared against a
security in the form of a post-
dated cheque for the differential
amount between the statutory
rate of sales tax and the amount
payable along with an
undertaking to pay the sales tax
at the statutory rates in case such
goods are not re-exported on
conclusion of the project.]
1157
[Table-4
The goods specified in column (2) of the Annexure below falling under the PCT codes specified in
column (3) of the said Annexure, when supplied within the limits of the Border Sustenance Markets,
established in cooperation with Iran and Afghanistan, shall be exempted from the whole of the sales tax,
subject to the following conditions, namely:-
(i) Such goods shall be supplied only within the limits of Border Sustenance Markets
established in cooperation with Iran and Afghanistan;

1155 Sr. No. 21 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 21 was as under:
“21. Import of POS machines 8470.2900, Import of POS machines including credit/debit
8470.9000 cards terminals and retailer cash register.”
1156 Added vide the Finance Act, 2022 dated on 30th June, 2022
1157 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021

[210]
 (ii) If the goods, on which exemption under this Table has been availed, are brought outside
the limits of such markets, sales tax shall be charged on the value assessed on the goods
declaration import or the fair market value, whichever is higher;
(iii) Such items in case of import, shall be allowed clearance by the Customs Authorities
subject to furnishing of bank guarantee equal to the amount of sales tax involved and the
same shall be released after presentation of consumption certificate issued by the
Commissioner Inland Revenue having jurisdiction;
(iv) The said exemption shall only be available to a person upon furnishing proof of having a
functional business premises located within limits of the Border Sustenance Markets; and
(v) Breach of any of the conditions specified herein shall attract relevant legal provisions of
this Act, besides recovery of the amount of sales tax alongwith default surcharge and
penalties involved.
Annexure
S. No Description Heading Nos of the
First Schedule to
the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
1 Seed (Potatoes) 0701.1000
2 Tomatoes, fresh or chilled 0702.0000
3 Onions and shallots 0703.1000
4 Garlic 0703.2000
5 Cauliflowers cabbage 0704.9000
6 Carrots and turnips 0706.1000
7 Cucumbers and gherkins fresh or chilled 0707.0000
8 Peas (pisum sativum) 0708.1000
9 Beans (vigna spp., phaseolus spp.) 0708.2000
10 other leguminous vegetables 0708.9000
11 Peas (Pisum sativum) 0713.1000
12 Grams (Dry/Whole) 0713.2010
13 Dried leguminous vegetables 0713.2090,
0713.9090
14 Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) 0713.3100
Wilczek
15 Small red (Adzuki) beans (Phaseolus or Vigna angularis) 0713.3200
16 Kidney beans including white beans 0713.3300
17 Bambara – vigna subteranea or vaahdzeia subterrea 0713.3400
18 Beans vigna unguiculata 0713.3500
19 Other 0713.3990
20 Lentils (Dry/Whole) 0713.4010
21 Broad beans (Vicia faba var. major) and horse beans (Vicia faba var. 0713.5000
equina, Vicia faba var. minor)
22 Pigeon peas (cajanus cajan) 0713.6000
23 Vanilla (Neither crushed nor ground) 0905.1000
24 Cinnamon 0906.1100
25 Other (Cinnamon And Cinnamon Tree Flowers) 0906.1900
26 Neither crushed nor ground (Cloves) 0907.1000

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27 Crushed or ground (Cloves) 0907.2000
28 Neither Crushed nor ground (Nutmeg) 0908.1100
29 Crushed or ground (Nutmeg) 0908.1200
30 Neither crushed nor ground (Maze) 0908.2100
31 Crushed or ground (Maze) 0908.2200
32 Large (Cardammoms) 0908.3110
33 Small (Cardammoms) 0908.3120
34 Crushed or ground (Cardammoms) 0908.3200
35 Neither crushed nor ground (Coriander) 0909.2100
36 Crushed or ground (Coriander) 0909.2200
37 Neither crushed nor ground (Seeds of Cumins) 0909.3100
38 Crushed or ground (Seeds of Cumins) 0909.3200
39 Neither crushed nor ground (Seeds of Anise, Badian, Caraway, Fennel 0909.6100
etc)
40 Crushed or ground (Seeds of Anise, Badian, Caraway, Fennel etc) 0909.6200
41 Thyme; bay leaves 0910.9910
42 Barley (Seeds) 1003.1000,
1003.9000
43 Sunflower seeds ,whether or not broken 1206.0000
44 Locust beans 1212.9200
45 Cereal straws and husks 1213.0000
46 Knives and cutting blades for paper and paper board 8208.9010
47 Of a fat content, by weight, not exceeding 1 % (milk and cream) 0401.1000
48 Of a fat content, by weight, exceeding 1 % but not exceeding 6 % 0401.2000
(milk and cream)
49 Of a fat content, by weight, exceeding 6 % but not exceeding 10% 0401.4000
(Milk and Cream)
50 Of a fat content, by weight, exceeding 10 % (Milk and Cream) 0401.5000
51 Leeks and other alliaceous vegetables 0703.9000
52 Cauliflowers and headed broccoli 0704.1000
53 Brussels sprouts 0704.2000
54 Cabbage lettuce (head lettuce) 0705.1100
55 Lettuce 0705.1900
56 Chicory 0705.2100,
0705.2900
57 Fruits of the genus Capsicum or of the genus Pimenta 0709.6000
58 Figs 0804.2000
59 Fresh (grapes) 0806.1000
60 Dried (Grapes) 0806.2000
61 Melons 0807.1100,
0807.1900
62 Apples 0808.1000
63 Green Tea 0902.1000
64 Other Green Tea 0902.2000
65 Crushed or ground (Ginger) 0910.1200
66 Turmeric (curcuma) 0910.3000
67 Other (spice) 0910.9990
68 Lactose (Sugar ) 1702.1110
69 Sugar Syrup 1702.1120

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 70 Sugar Other 1702.1900
71 Caramel 1702.9020
72 Oil-cake and other solid residues, whether or not ground or in the 2304.0000
form of pellets, resulting from the extraction of soya bean oil.
73 Other (animal feed) 2309.9000
74 For Sewing (Thread) 5204.2010
75 For embroidery (Thread) 5204.2020
76 Spades and shovels 8201.1000
77 Tools for masons, watchmakers, miners and hand tools nes 8205.5900
78 For kitchen appliances or for machines used by the food industry 8208.3000
79 Other kitchen appliances 8208.9090
1158
80 Yogurt [0403.2000]
81 Other (Potatoes) 0701.9000
82 Sweet corn 0710.4000
83 Mixtures of vegetables 0710.9000
84 Fresh (Dates) 0804.1010
85 Dried (Dates) 0804.1020
86 Apricots 0809.1000
87 Sour cherries (Prunus cerasus) 0809.2100
88 Other (Apricots) 0809.2900
89 Peaches, including nectarines 0809.3000
90 Plums and sloes 0809.4000
91 Strawberries 0810.1000
92 Kiwi Fruit 0810.5000
93 Neither crushed nor ground (Ginger) 0910.1100
94 Wheat and Meslin(Other) 1001.1900
95 Wheat and Meslin (Other ) 1001.9900
96 Of Wheat (Flour) 1101.0010
97 Of Meslin 1101.0020
98 Vermacelli 1902.1920
99 Other (Packed Cake) 1905.9000
100 Homogenised perparations 2007.1000
101 Citrus Fruit 2007.9100
102 Other (jams) 2007.9900
103 Organic surface-active products and preparations for washing the 3401.3000
skin, in the form of liquid or cream and put up for retail sale, whether
or not containing soap
104 Preparations put up for retail sale 3402.2000
105 Other (washing preparations) 3402.2000
106 Tableware and kitchenware of porcelain or china 6911.1090
107 Household articles nes & toilet articles of porcelain or china 6911.9000
108 Glassware for table or kitchen purposes (excl. glass having a linear c 7013.4900
109 Glassware nes (other than that of 70.10 or 70.18) 7013.9900
110 Spoons 8215.9910
111 Tableware articles not in sets and not plated with precious metal 8215.9990
112 Bicycles and other cycles (including delivery tricycles), not motorised 8712.0000
113 Vacuum flasks 9617.0010

1158 Substituted the PCT Code“0403.1000” vide the Finance Act, 2022 dated on 30th June, 2022

[213]
 114 Vacuum flasks/vacuum vessels complete w/cases; parts o/t glass 9617.0020.]
inners (others)
1159
[Annex-A

Header Information
NTN/FTN of Importer Regulatory Authority no. Name of Regulatory authority
(1) (2) (3)
Details of Input goods (to be filled by the chief executive of the Goods imported (Collectorate of
importing company) import)

Quantity imported
Custom Duty rate

CRN/ Mach No.

Sales Tax rate

Date of CRN/
Collectorate
(applicable)

(applicable)
Description
HS Code

Quantity

WOM

Mach.
Specs

WHT

No.
(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

1159 Annexure-A was substituted vide the Finance Act, 2022 dated on 30th une, 2022. At the time of substitution Annexture-
A was as under:-
“Annex-A
Header Information
NTN/FTN of Importer Regulatory authority no. Name of Regulatory authority
(1) (2) (3)
Details of Input goods (to be filled by the chief executive of the importing Goods imported (Collectorate of import)
company)
Description Specs Custom Duty Sales Tax rate UOM Quantity Collectorate CRN/ Date of CRN/
rate (applicable) imported Mach Mach.
HS Code

Quantity

(applicable) No. No.

WHT

(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
CERTIFICATE. It is certified that the description and quantity mentioned above are commensurate with the project
requirement and that the same are not manufactured locally. It is further certified that the above items shall not be used
for any other purpose.
Signature of Chief Executive, or
the person next in hierarchy duly
authorized by the Chief Executive
Name
N.I.C. No.
NOTE:- In case of clearance through Pakistan Customs Computerized System, the above information shall be
furnished online against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969.
Explanation.-
Chief Executive means.-
1. owner of the firm, in case of sole proprietorship; or
2. partner of firm having major share, in case of partnership firm; or
3. Chief Executive Officer or the Managing Director in case of limited company or multinational organization; or
4. Principal Officer in case of a foreign company.”

[214]
 CERTIFICATE. It is certified that the description and quantity mentioned above are
commensurate with the project requirement and that the same are not manufactured locally. It is
further certified that the above items shall not be used for any other purpose.
Signature of Chief Executive, or
the person next in hierarchy duly
authorized by the Chief Executive
Name ______________________
N.I.C. No. __________________________________
NOTE:- In case of clearance through Pakistan Customs Computerized System, the above
information shall be furnished online against a specific user I.D. and password obtained under
section 155D of the Customs Act, 1969.
Explanation.–
Chief Executive means.–
1. owner of the firm, in case of sole proprietorship; or
2. partner of firm having major share, in case of partnership firm; or
3. Director, in case of private limited company; or
4. Chief Executive Officer or the Managing Director in case of limited company or
multinational organization; or
5. Principal Officer in case of a foreign company.]

Annex-B
Header Information
NTN/FTN of Importer Approval No.
(1) (2)
Details of Input goods (to be filled by the authorized officer of the Goods imported (Collectorate of import)
Regulatory Authority)
Description Custom Duty Sales Tax Quantity Collectorate CRN/ Date of
HS Code

Quantity

rate rate imported Mach CRN/

Specs

UOM
WHT

(applicable) (applicable) No. Mach.

No.

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
CERTIFICATE. Before certifying the above-authorized officer of the Regulatory Authority shall ensure
that the goods are genuine and bonafide requirement of the project and that the same are not
manufactured locally.
Signature
Designation
NOTE:-In case of clearance through Pakistan Customs Computerized System the above information shall
be furnished on line against a specific user I.D. and password obtained under section 155D of the
Customs Act, 1969. ]

[215]
 1160
[***]

1160 The Seventh Schedule was omitted vide the Finance Act, 1997(XXII of 1997). Before omission Seventh Schedule was
added vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997) At the time of omission it was as under:--
The
7s-i
[SEVENTH SCHEDULE
[See section 3(2)(e)]
S. Description of goods Chapter Nos. and Heading
No. Nos. of the First Schedule
to the Customs Act, 1969
(IV of 1969)
(1) (2) (3)
1. Raw hides and skins, 41.0 I. 41.02. 41.03.
2. Leather including laminated leather, chamois leather metallised leather and composition 41.04.41.05.41.06.41.07.
leather. 41.0S. 4109.
41.11.
3. Articles of leather: saddling and harness goods, hand-bags and similar containers 420 I. 42.02. 42.03. 42.05.
4. Silk yam. 50.04. 50.05. 50.06.
5. Silk fabrics. 5007.
6. Wool. 51.01. 51.92. 51.03. 5104.
51.05.
7. Woollen yam. 5106.1090, 5106.2090,
5107.1090, 5107.2090.
8. Cotton. 52.01. 52.02: 52.03.
9. Cotton yam. 5205. 52.06. 52.07
10. Cotton fabrics. 52.08, 52.09, 52.10, 52.11,
52.12
11. Fabrics of man-made filaments. 54.07, 54.08
12. Yam of man-made staple fibres. 55.09, 55.10, 55.11
13. Fabrics of man-made staple fibres. 55.12, 55.13, 55.14, 55.16
14. Hand-knotted carpets. Chapter 57
15. Special woven fabrics: tufted textile fabrics: lace: tapestries: Chapter 58
Trimming: embroidery.
16. Knitted or crocheted fabrics. Chapter 60
17. Articles of apparel and clothing accessories. Chapter 61 and Chapter
62.
18. Bed-linen, table-linen, toilet-linen and kitchen-linen. 63.02
19. Curtains excluding blinds. 63.03
20. Tarpaulins and tents. 63.06
21. Dress patterns. 63.07
22. Footwear, gaiters and the like; parts of such articles. Chapter 64
23. Articles and equipment for general physical exercise, gymnastics, athletics, other sports 95.06
including table-tennis or outdoor games.
24. Plants, vegetable saps and extracts of a kind used in pharmacy; if imported these will be 1211.9091,1302.1910.
subject to similar conditions as are envisaged for the purposes of the Customs Act, 1969 (IV of
1969).
25. Natural calcium phosphates. 25.10
26. Natural aluminum calcium phosphate. 25.10
27. Phosphatic chalk. 25.10
28. Radioactive chemical elements and radioactive isotopes and their compounds for treatment of Respective headings.
diseases for government hospitals and hospitals providing free medical facilities to patients.
29. Raw materials for basic manufacture of pharmaceutical active ingredients; if imported these Respective headings.
will be subject to-similar conditions as are envisaged for the purposes of the Customs Act,
1969 (IV of 1969).
30. Raw materials for manufacture of pharmaceutical products; if imported these will be subject to Respective headings.
similar' conditions as are envisaged for the purposes of the Customs Act, 1969 (IV of 1969).
31. Packing materials for manufacture of pharmaceutical products, including neutral glass Respective headings.
tubings for the manufacture of vials and ampoules; if imported these will be subject to similar
'conditions as are envisaged for the purposes of the Customs Act, 1969 (IV of 1969).

[216]
32. Raw materials for manufacture of syringes and infusion giving sets; if imported these will be Respective headings.
subject to similar conditions as are envisaged for the purposes of Customs Act, 1969 (IV of
1969).
33. Raw materials for manufacture of artificial parts of human body; if imported these will be Respective headings.
subject to similar conditions as are envisaged for the purposes of Customs Act, 1969 (IV of
1969); artificial limbs or parts of human body.
34. Dialysis bath concentrate solution for use in kidney machines. Respective headings.
35. Raw materials for non-oral diagnostic re-agents imported by 'approve manufacturers of non- Respective headings.
oral diagnostic kits.
36. Non-oral diagnostic re-agent kits, Respective headings.
37. Raw materials, equipments and component parts thereof for the production of vaccine and' Respective headings.
other life saving drugs for National Institute of Health, Islamabad.
38. Laundry soap. 3401.1910
39. Photographic plates and films for X-ray. 3701,1000,
40. Books, journals and periodicals excluding directories of all sorts. 49.01,49.03.
41. Colostomy bags. 3926.9090
42. Surgical gloves. 4015.1100, 3926.2010.
43. Raw materials used in the manufacture of insecticides and pesticides meant for agricultural Respective headings.
purposes; if imported these will be subject to similar conditions as are envisaged for the
purposes of Customs Act, 1969 (IV of 1969).
44. Specially designed blood bank refrigerators and mortuary refrigerators. 84.18

45. Ambulances. 87.03

46. Instruments and appliances used in medical, surgical, dental or veterinary sciences, including 90.18
scientigraphic apparatus; other electro-medical apparatus and sight-testing instruments.
47. Mechano-therapy appliances; massage apparatus; psycho- logical aptitude-testing apparatus; 90.19,90.20
ozone therapy, oxygen therapy, aerosol therapy, artificial respiration- or other therapeutic
respiration apparatus; other breathing appliances and gas masks, excluding protective masks
having neither mechanical apparatus nor replacement filters.
48. Orthopaedic appliances including crutches, surgical belts and trusses; splints and other 90.21
fracture appliances; artificial parts of the body; hearing-aids and other appliances which are
worn or carried, or implanted in the body to compensate for any defect or disability.
49. Medical, surgical, dental or veterinary furniture. 94.02.
50. Cream, fat and oil derived from milk and cheese, packaged and sold under brand names. Respective headings.
[7s-i Prior to addition through vide the Finance Supplementary (Amendment) Act, 1997 (IV of 1997). The Seventh
Schedule was added and amended vide the Sales Tax (Second Amendment) Ordinance, 1996 (CIX of 1996);
and by the Sales Tax (Third Amendment) Ordinance, 1996 (CXXI of 1996); and vide the Sales Tax
(Amendment) Act, 1997 (XXXIX of 1997). At the time of addition through Finance Supplementary
(Amendment) Act, 1997 (IV of 1997) the Seventh Schedule was as under:--
The
7s-ii
[SEVENTH SCHEDULE
[See section 3(2)(e)]
S. No. Description of goods Chapter Nos. and
Heading Nos. of the
First Schedule to the
Customs Act, 1969
(IV of 1969)
(1) (2) (3)
1. Raw hides and skins. 41.0 L 41.02. 41.03
2. Leather including laminated leather, chamois leather, metallised leather and 41.04.41.05.41.06.
composition leather. 41.07.41.08.41.09.
41.11.
3. Articles of leather; saddling and harness goods hand bags and similar 42.0 I. 4202.
containers. 42.03.42.05.
4. Silk yarn. 50.04. 50. 50.06.
5. Silk fabrics. 50.07
6. Wool. 51.0I, 51.02, 51.03,
51.04, 51.05

[217]
 7. Woollen yarn. 5106.1090.
5106.2090.
5107.1090.5107.2090.
8. Cotton. 52.01, 52.02, 52.03
9. Cotton yarn. 52.05, 52.06, 52.07
10. Cotton fabrics. 52.08, 52.09, 52.10
11. Fabrics of man made filaments. 54.07, 54.08
12. Yarn of man made staple fibres. 55.09, 55.10, 55.11
13. Fabrics of man made staple fibres. 55.12, 55.13, 55.14,
55.16
14. Hand-knotted carpets. Chapter 57
15. Special woven fabrics: tufted textile fabrics; lace: tapestries; trimmings; Chapter 58
embroidery.
16. Knitted or crocheted fabrics. Chapter 60
17. Articles of apparel and clothing accessories. Chapter and chapter
62
18. Bed linen. table linen toilet linen and kitchen linen. 63.02
19. Curtains excluding blinds. 63.03
20. Tarpaulins and tents. 63.06
21. Dress patterns. 63.07
22. Footwear, gaiters and the like: parts of such articles. Chapter 64
23. Articles and equipment tor general physical exercise, gymnastics. Athletics, other 95.06]
sports (including table-tennis) or out-door games.
7s-iii
[24 Plants vegetable saps and extracts of a kind used to pharmacy. if Imported these 1211.9091.1302.1910
will he subject to Similar conditions as are envisaged for the purposes of the
Customs Act, 1969.
25. Natural calcium phosphates 25.10
26. Natural aluminum calcium phosphate. 25.10
27. Phosphatic chalk. 25.10
28. Radio-active chemical elements and radio-active isotopes and their compounds Respective headings.
for treatment of diseases for government hospitals and hospitals providing free
medical facilities to patients.
29. Raw materials for basic manufacture of pharmaceutical active ingredients. If Respective headings.
imported these will be subject to similar conditions as are envisaged for the
purposes of the Customs Act, 1969.
30. Raw materials for manufacture of pharmaceutical products. If imported these Respective headings.
will be subject to similar conditions as are envisaged for the purposes of the
Customs Act, 1969.
31. Packing materials lor manufacture of pharmaceutical products including neutral Respective headings.
glass tubings for the manufacture of vials and ampoules. If imported these will be
subject to similar conditions as arc envisaged for the purposes of the Customs
Act, 1969.
32. Raw materials for manufacture of syringes. and infusion giving sets. If imported Respective headings.
these will be subject to similar conditions as are envisaged for the purposes of
Customs Act.
33. Raw materials for manufacture of artificial parts of human body. If imported Respective headings.
these will be subject to similar conditions as are envisaged for the purposes of
Customs Act; artificial limbs/parts of human body.
34. Dialysis bath concentrate solution for use in kidney machines. Respective headings.
35. Raw materials for non-oral diagnostic re-agents, imported by approved Respective headings.
manufacturers of non-oral diagnostic kits.
36. Non-oral diagnostic re-agent kits. Respective headings.
37. Raw materials, equipments and component parts thereof for the production of Respective headings.
vaccine and other life saving drugs for National Institute of Health: Islamabad.
38. Laundry. soap. 3401.1910
39. Photographic plates and films for X-ray. 3701.1000 ,3702.1000
40. Books. journals and periodicals excluding directories of all sorts. 49.01, 49.03
41. Colostomy bags. 3926, 9090

[218]
 1161
[EIGHTH SCHEDULE
[See clause (aa) of sub-section (2) of section 3]
Table-1
S. No. Description Heading Nos. of the Rate of Condition
First Schedule to the Sales Tax
Customs Act, 1969
(IV of 1969)
(1) (2) (3) (4) (5)
1162
[*** *** *** *** ***]
1163
[*** *** *** *** ***]

42. Surgical gloves. 4015.1100, 3926,

2010
43. Raw materials used in the manufacture of insecticides and pesticides meant for Respective headings
agricultural purposes. If Imported these will be subject to similar conditions as
are envisaged for the purposes of Customs Act.
44. Electric etching machines: ultrasonic machines; and sand blasting machines, for Respective headings
the manufacture of surgical instruments.
45. Specially designed blood bank refrigerators and mortuary refrigerators. 84.18.

46. Ambulances. 87.03.

47. Instruments and appliances used in medical, surgical, dental or veterinary 90.18.
sciences, including scientigraphic apparatus; other electro-medical apparatus
and sight-testing instruments.
48. Mechano-therapy appliances; massage apparatus; psycho- logical aptitude- 90.19,90.20
testing apparatus: ozone therapy, oxygen therapy, aerosoltherapy, artificial
respiration or other therapeutic respiration apparatus; other breathing
appliances and gas masks, excluding protective masks having neither mechanical
apparatus nor replacement filters.
49. Orthopaedic appliances, including crutches, surgical belts and trusses; splints 90.21.
and other fracture appliances; artificial parts of the body; hearing aids and
other appliances which are worn or carried, or implanted in the body to
compensate for any defect or disability.
50. Medical, surgical, dental or veterinary furniture. 94.02.
51. Plant and machinery, including coal mining machinery, for balancing, Respective headings.
modernization and replacement or ioitial installation of power generation
projects, including hydel power generation projects. If imported these will be
subject to similar conditions as are envisaged for the purposes of the Customs
Act, 1969.
52. Plant and machinery for petroleum sector projects. If imported these will be Respective headings.
subject to similar conditions as are envisaged for the purposes of Customs Act.
53. Plant and machinery for power transmission system projects and grid stations. If Respective headings.
imported these will be subject to similar conditions as are envisaged for the
purposes of the Customs Act, 1969.
54. Plant and machinery for manufacture of fertilizers, insecticides and pesticides. Respective headings.
55. Cream, fat and oil derived from milk and cheese, packaged and sold under brand Respective headings.
names.
[7s-ii The Seventh Schedule (containing S. Nos. I to 23) was added vide the Sales Tax (Second Amendment)
Ordinance, 1996 (CIX of 1996), effective from 2nd November, 1996.Again it was added vide Sales Tax
Amendment) Ordinance, 1997 (XXXIX of 1997]
[7s-iii S. Nos. 24 to 55 and the entries relating thereto added vide the Sales Tax (Third Amendment) Ordinance,
1996 (CXXI of 1996), effective from 29th December, 1996]
1161 Added vide the Finance Act, 2014
1162 Sr. No. 1 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
1 was as under:-
“1. Soyabean meal 2304.0000 10%”
1163 Serial number 2 was omitted vide Finance Act, 2020 assented on 1st July, 2020. At the time of substitution clause (ai)
was as under:-

[219]
1164
[*** *** *** *** ***]
1165
[*** *** *** *** ***]
1166
[*** *** *** *** ***]
1167
[*** *** *** *** ***

“2. Oil cake and other solid residues, whether 2306.1000 5%”
or not ground or in the form of pellets
1163 Substituted for the figure “5%” vide Finance Act, 2015
1164 Serial number 3 was omitted vide Finance Act, 2015. At the time of omission Serial number3 was as under:-
3. Directly reduced iron 72.03 5%
1164 Substituted for the figure “5%” vide Finance Act, 2015
1165 Sr. No. 4 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission S. No. 4 was as under:
“4. Oilseeds meant for Respective headings 5% Import thereof subject to the condition that the
sowing. concerned department of the Division dealing
with the subject matter of oil seed certifies that
the imported seeds are fungicide and insecticide
treated and are meant for sowing.”
1166 Sr. No. 5 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
5 was as under:-
“5. Raw cotton and ginned cotton Respective headings 10% On import”
1167 Sr. Nos. 6 to 17 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
At the time of omission Sr. Nos. 6 to 17 was as under:

[220]
“6. Plant and machinery not manu- Respective headings 10% (i) On import of such plant and
factured locally and having no machinery by registered
compatible local substitutes manufacturers, postdated cheque(s)
equal to the differential amount of
sales tax payable at import stage,
shall be submitted to the customs
authorities, which shall be returned
on furni-shing proof of filing of first
sales tax return after import of such
machinery, showing the import of
such machinery;
(ii) On import by comercial
importers, goodfor-payment cheque,
bank guarantee, pay order or treasury
challan showing deposit. equal to the
differential amount of sales tax
payable at import stage, shall be
submitted to the customs authorities,
which shall be returned back, or as
the case may be, refunded, alter
evidence of subsequent supply to
regist-ered manufacturers or indu-
strial users is furnished to the
customs authorities:
(iii) Supply of such import-ed plant
and machinery by commercial
importers to unregistered persons or
per-sons other than manufac-turers
shall be liable to standard rate of tax,
and evidence to that effect shall be
produced to the customs authorities
for release of the above mentioned
instrum-ents or refund of the amount
paid at import stage:
(iv) Subsequent supply of plant and
machinery impor-ted or acquired by
regist-ered manufacturers to un-
registered person's or pers-ons other
than manufact-urers shall be liable to
tax at standard rate: and
(v) the validity period of instruments
furnished und-er this provision shall
not be less than one hundred and
twenty days.
Explanation.– For the purp-ose of
this provision, plant and machinery
means such plant and machinery as is
used in the manufacture or
production of goods.
7. Flavoured milk 0402.9900 10% Sold in retail Packing under a
brand name
8. Yogurt 0403.1000 10% Sold in retail Packing under a
brand name
9 Cheese 0406.1010 10% Sold in retail Packing under a
brand name
10. Butter 0405.1000 10% Sold in retail Packing under a
brand name
11. Cream 04.01 and 04.02 10% Sold in retail Packing under a
brand name

[221]
12. Desi ghee 0405.9000 10% Sold in retail packing under a brand
name
13. Whey 04.04 10% Sold in retail Packing under a
brand name
14. Milk and cream, concentrated 0402.1000 and 0402.2000 10% Sold in retail packing under a brand
or containing added sugar or name
other sweetening matter
15. Ingredients of poultry feed, 2301.1000 (Meat and Bone Meal)], 10%
cattle feed, except soya bean 2305.0000,
meal of PCT heading 2304. 2306.2000, 2306.3000,
0000 and oilcake of cotton seed 2306.4100, 2306.5000,
falling under PCT heading 2309.9010, 2309.9020,
2306.1000 2309.9090, 2936.2100,
2936.2200, 2936.2300,
2936.2400, 2936.2500,
2936.2600, 2936.2700,
2936.2800, and 2306.4900 (Rape
Seed Meal), 2308.9000 (Guar
Meal), 2303.1000 (Corn Gluton
Feed/Meal,
2303.1000 (Residues of starch
manufac-ture and similar
residues), 3507.9000 (Enzymes
other), 2302.1000 (Maize Bran),
2302.2000 (Rice Bran),
2302.4000 (Other
Cereals),2302.5000 (Bran of
Leguminous Plants), 2306.7000
(Oil-cake and other solid residues
of Maize (corn) germ), 2306.4900
(Sesame Cake), 2306.9000

[222]
 *** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***]
1168
[*** *** *** *** ***]

(Sesame Meal/other Meal),

2842.1000 (Double or complex
silicates,
Including aluminosil-icates
whether or not
Chemically defined),
2301.2090 (Fish Meal),
0505.9000
(Poultry by product Meal), and
the follow-ing items only of Feed
Grade: 2827.6000 (Potassium
Lodide), 2833.2990 (Manganese
Sulphate), 2833. 2940 (Zinc
Sulphate), 2817.4000 (Zinc
Oxide), 2833.2500 (Copper
Sulphate), 2833.2910 (Ferrous
Sulphate), 2915.5000 (Propionic
acid, its salts and esters),
2930.4000 (DL Methionine),
2930.4000 (Methion-ine Hydroxy
Analogue (liquid)), 2922.4100
(Lysine Monohydro Chloride
/sulphate), 2923.2000 (Lecithins),
2923.9010 (Betaine)] (Betafin),
2922.4290 (Arganine), 2934.9910
(Furazoli-done), 2922. 5000
(Threonine), 2835.
2600 (Mono Calcium
Phosphate), 2835.2500 (Di
Calcium Phosph-ate), and
2835.2600 (Mono Di Calcium
Phosphate)
16. Incinerators of disposal of 8417.8000 8430.2000 5%
waste management, motorized And 8479.8990
sweepers and snow ploughs
17. Re-importation of foreign 99.18 5% Subject to similar condit-ions as
origin goods which were are envisaged for the purposes of
temporarily exported out of customs duty under the Customs
Pakistan Act, 1969, and taxable value shall
be the value determined under PCT
heading 99.18 of the said Act
increased by customs duty
payable”
1168 Sr. No. 18 was omitted vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of omission Sr. No.
18 was as under:-

[223]
1169
[*** *** *** *** ***]
1170 ***]
[*** *** *** ***
1171
[*** *** *** *** ***]
1172
[*** *** *** *** ***]
23. Secondhand and worn 6309.0000 5%
clothing or footwear
1173
[*** *** *** *** ***]
1174 ***]
[*** *** *** ***

18. Reclaimed lead Respective headings 5% If supplied to Recognized 35 manufacturers

of lead and lead batteries
1169 Sr. No. 19 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
19 was as under:-
“19. Waste paper 47.07 5% If supplied locally
1170 Sr. No. 20 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 20 was as under:
“20. Plant, machinery, and equipment] Respective 5% The Alternative Energy Development
used in production of biodiesel headings Board (AEDB), Islamabad shall certify
in the prescribed manner and format as
per Annex-B, as given in the Sixth
Schedule, that the imported goods are
bonafide project requirement. The
goods shall not be sold or other wise
disposed of 36 within a period of five
years of their import except with the
prior approval of the FBR and payment
of customs duties and taxes leviable at
the time of import.”
1171 Sr. No. 21 was omitted vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of omission Sr. No.
21 was as under:-
21. Rapeseed, sunflower seed and 1205.0000, 16% On import by Solvent
canola seed 1206.0000 extraction industries
1172 Sr. No. 22 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
22 was as under:-
“22. Soya bean seed 1201.1000 10% On import by solvent extr-action industries, subject to the
condition that no refund of input tax shall be admissible
1173 Sr. No. 25 was omitted vide the Finance Act, 2022 dated 30th June, 2022. At the time of omission Sr. No. 25 was as
under:-
“25. Agricultural tractors 8701.9220 and 8701.9320] 10%”
1174 Sr. Nos. 26 to 30 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission Sr. Nos. 26 to 30 was as under:
“26. Tillage and seed bed prepara-tion equipment: 5%
(i) Motivator 8432.8010
(ii) Cultivator 8432.2910
(iii) Ridger 8432.8090
(iv) Sub soiler 8432.3900
(v) Rotary slasher 8432.8090
(vi) Chisel plow 8432.1010
(vii) Ditcher 8432.1090
(viii) Border disc 8432.2990
(ix) Disc harrow 8432.2100
(x) Bar harrow 8432.2990
(xi) Mould board plow 8432.1090
(xii) Tractor rear or front blade 8430.6900
(xiii) Land leveler or land planer 8430.6900
(xiv) Rotary tiller 8432.8090

[224]
1175
[*** *** *** *** ***]

(xv) Disc plow 8432.1090

(xvi) Soil-scrapper 8432.8090
(xvii) K.R.Karundi 8432.8090
(xviii) Tractor mounted trencher 8701.9020
(xix) Land leveler 8430.6900
(xx) Laser land leveler comprising of laser Respective heading]
transmitter, laser receiver, control box, rigid mast
pack, with or without scrapper
27. Seeding or planting equipment: 5%
(i) Seed-cum-fertilizer Drill (wheat, rice barley, 8432.3900
etc.)
(ii) Cotton or maize planter with fertilizer 8432.3900
attachment
(iii) Potato planter 8432.3900
(iv) Fertilizer or manure spre-ader or broadcaster 8432.4100
(v) Rice transplanted 8432.3090
(vi) Canola or sun-flower drill 8432.3100
(vii) Sugarcane planter 8432.3900
28. Irrigation, drainage and agroch-emical application 8421.2100, 8421.9990, 5%
equipment: 8424.2010, 8424.2010,
8424.2010, 8424.2010,
8424.2010
(i) Tube wells filters or stra-iners
(ii) Knapsack sprayers
(iii) Granular applicator
(iv) Boom or field sprayers
(v) Self propelled sprayers
(vi) Orchard sprayer
29. (i) Harvesting, threshing and storage equipment: 5%
(ii) Wheat thresher
(iii) Maize or groundnut thre-sher or sheller
(iv) Groundnut digger
(v) Potato digger or harvester
(vi) Sunflower thresher
(vii) Post hole digger
(viii) Straw balers
(ix) Fodder rake
(x) Wheat or rice reaper
(xi) Chaff or fodder cutter
(xii) Cotton picker
(xiii) Onion or garlic harvester
(xiv) Sugar harvester
(xv) Tractor trolley or forage wagon
(xvi) Reaping machines
(xvii) Combined harvesters
(xviii)Pruner/ shears
30 Post-harvest handling and Pro-cessing & 5%
miscellaneous mac-hinery:
(i) Vegetables and fruits clean-ing and sorting or 8437.1000
grading equ-ipment
(ii) Fodder and Feed cube maker equipment 8433.4000”
1175 Serial No. 31 and related entries in column (2), (3) and (4) were omitted vide the Finance Act, 2016. At the time of
omission Serial No. 31 was as under:--

[225]
31 Pesticides and their active ingredients 38.03 7% In case of supplies, no input tax
registered by the Department of Plant credit shall be admissible, except
Protect-ion under the Agricultural Pest- that of the tax paid under this
icides Ordinance, 1971 (II of 1971), serial number.”;
stabilizers, emu-lsifiers and solvents,
namely:-
Xylol (xylenes) 2707.3000
-Beta Pinene/Agrotin 527/ Ter-penic 2902.1990
derivative
Toluene 2902.3000
Mixed xylene 2902.4400
Isomers
Naphthalene 200 2902.9090
Ingredients for pesticides 2903.3040
Cadusafos 2903.6900
Techanical Material 2905.1100
Methanol (methyl alcohol)
Propylene glycol (Propane-1,2-diol) 2905.3200
-Adhesives Polyvinyl Acetate 2905.4900
-Polyvinyl Alcohol
Ingredients for pesticides 2906.2910
Other Ingredients for pesticides 2906.2990
= Solvenon MP/1- 2909.4910
Methoxy 2- Propanol
- Methyglycol Acetate
Methanal(formaldehyde) 2912.1100
Cyclo-hexanone and methyl- cycle- 2914.2200
hexanones
- Cyclohexanon 2914.2990
- Cyclohexanone Mixed petrol-eum
Xylene (1,2 & 1,3 & 1,4 dimethyl
benzene and ethyle benzene)
Acetic anhydride 2915.2400
Ingredients for pesticides 2916.3920
Dioctyl Orthophthalates 2917.3200
Ingredients for Pesticides 2918.9010
Other Ingredients for pesticides 2919.0090
Endosulfan Technical Material 2920.9020
Other Ingredients for pesticides 2920.9090
Diethylamin and Its salts 2921.1200
Ingredients for Pesticides 2921.4310
Other Ingredients for Pesticides 2921.4390
Ingredients for Pesticides 2921.5110
Triethanolamine and its salts 2922.1300
Dimenthyl Formamide (DMF) 2924.1990
ingredients for pesticides 2924.2930
Other Ingredients for pesticides 2924.2990
Alpha cyano, 3-henoxybenzyl (-) cis, 2926.9010
trans 3-(2,2- diclord vinyl) 2, 2 dimethyl
cyclopro-pane carboxylate
(S) Alpha cyano, 3-phenoxy-benzyl (S)- 2926.9020
2-(4, chloro phenyl)-3 mehtyl butyrate
Cyano, 3-phenony benzyl 2,2, 3,3 tetra 2926.9030
methyl cyclopropane carboxalate

[226]
- Cypermethrin, 2926.9050
Alpha Cypermethrin,
Beta-Cypermethrin,
Zeta-Cypermethrin,
Lambda Cylaiothrin,
Detamethrin,
Phenpropathrin,
Esfenvalerate,
Bifenthrin Technical Material-
Acetamiprid,
Imidacloprid Technical Materi- al-
Monomehypo, Chlorothalonil Technical
Mate-rial
Bromoxynil Technical Material
Other nitrite Compounds- 2926.9090
Cyfluhrin, Beta Cyfluthrin Technical
Material
2-N, N-Dimethyl arnino-l sodium 2930,2010
thiosulphate, 3-thiosulfourropane
ingredients for pesticides 2930,2020
2- N,N-dimethyamino 1,3 2930.9010
disodium thiosulphate propane
O,S-dimethyl phosphoramidothioate 2930.9020
S-S (2 dimethyl amino (trimeth-ylene) bis 2930,9030
(thio carbamate)
Diafethiuran technical 2930.9040
(itertbutyl)3-2-6 disopropyl
Phenoxyphenyl thiourene
O.O diethylo- (3,5,6 trichloro pyridinyl) 2030.9050
phosphorothioate
O-(4-bromo,2- Chloro phenyl)o-ethyl s- 2930.9060
propyl (phosphorothioate)
O,Oduethyl o- (3,5,6-trichloro2- pyridyl) 2930.9070
phosphorothioate
Ingredients for pesticides 2930.9080
Other orgonosulpher Compou- 2930.9090
nds -Ethion, Methamidophos Technical
Material
-Dimethysulfoxid
Ingredients for pesticides 2931.0010
Other ingredients for pesticides 2931.0090
Ingredients for pesticides 2932.2920
2,3 Dihydro 2m2 dimethyl-7 benzo 2932.9910
furanyl methyl-carbamate
Other ingredients for pesticides 2932.9990
- Carbosulfan Technical Material
Fipronil 2933.1900
Ingredients for pesticides 2933.3930
Other Ingredients for pesticides 2933.3990
- Chlorpyrifos, 2933.5950
Triazophos,
Diazinon Technical Material
Other Ingredients for pesticides 2933.5990
pyrimathanine 2933.6910
Ingredients for Pesticides 2933.6940
-Atrazine 2933.6990
Technical Material Isatin (lactam of istic 2933.7910
acid)
1-Viny 1-2-pyrrol- Idone 2933.7920

[227]
1176
[*** *** *** *** ***]
1177
[ *** *** ***]
1178 ***]
[*** *** *** ***
1179
[*** *** *** ***]
1180
[*** *** *** ***]
1181
[*** *** *** ***]
1182
[*** *** *** ***]

-Triazophos Techanical Material 2933.9910

Ingredients for Pesticides 2934.1010
Ingredients for Pesticides 2934.9920
-Methyl Benzimidazol-2- ylcarbamate. 2938.9010
-Dicopper chloride trihydroxide
Ingredients for pesticides 2939.9910
Abamectin, Emamectin Technical 2941.9050
Material
Other Ingredients for pesticides 2941.9090
Sulphonic acid (Soft) 3402.1110
Other surface active agents 3402.1190
Catonic 3402.1290
Non ionic surface 3402.1990
surface active agents 3402.9000
Chemical preparations 3824.9099

1176 Sr. No. 32 was omitted vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019. At the time of omission Sr. No.
32 was as under:-
32. White crystalline sugar 1701.9910 and 1701.9920 8%
1177 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. At the time of omission Serial No. 33 was
as under:-
33. Urea, whether or not in aqueous solution 3102.1000 5%
1178 Sr. No. 34 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 34 was as under:
“34. 1. Set top boxes for gaining 8517.6950 5% Subject to type approval by
access to internet PEMRA. This concession shall
2. TV broadcast transmitter 8525.5020 be available upto 30th June,
3. Reception apparatus for 8528.7110 and 8528.7220 2018”
receiving satellite signals of a
kind used with TV (satellite
dish receivers) 8528.7190 and 8528.7290
4. Other set top boxes
1179 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. At the time of omission Serial No. 35 was
as under:-
1179[35. DAP Respective heading Rs. 100 per 50 kg bag Nil
1180 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. At the time of omission Serial No. 36 was
as under:-
36. NP (22-20) Respective heading Rs. 168 per 50 If manufactured from gas other
kg bag than imported LNG
1181 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. At the time of omission Serial No. 37 was
as under:-
37. NP (18-18) Respective heading Rs. 165 per If manufactured from gas other
50 kg bag than imported LNG
1182 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. At the time of omission Serial No. 38 was
as under:-
38. NPK-I Respective heading Rs. 251 per If manufactured from gas other
50 kg bag than imported LNG

[228]
1183
[*** *** *** ***]
1184
[*** *** *** ***]
1185
[*** *** *** ***]
1186
[*** *** *** ***]
1187
43. Natural gas Respective heading [5%] If supplied to fertilizer
plants for use as
feedstock in
manufacturing of
fertilizer
44. Phosphoric acid 2809.2010 5% If imported by fertilizer
company for manufac-
turing of DAP
1188 ***
[*** *** *** ***
*** *** *** *** ***]
47. Locally produced coal 27.01 Rs. Nil
1189
[700]
per metric
tonne or
1190
[18%]
ad
valorem,
whichever

1183 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. At the time of omission Serial No. 39 was
as under:-
39. NPK-II Respective heading Rs. 222 per If manufactured from gas other
50 kg bag than imported LNG
nd
1184 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22 May, 2018. At the time of omission Serial No. 40 was as
under:-
40. NPK-III Respective heading Rs. 341 per 50 If manufactured from gas other than
kg bag imported LNG
nd
1185 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22 May, 2018. At the time of omission Serial No. 41 was as
under:-
41. SSP Respective heading Rs. 31 per 50 If manufactured from gas other than
kg bag imported LNG
nd
1186 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22 May, 2018. At the time of omission Serial No. 42 was as
under:-
42. CAN Respective heading Rs. 98 per 50 If manufactured from gas other than
kg bag imported LNG
1187 Substituted for “10” vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018
1188 Sr. Nos. 45 and 46 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. No. 45 and 46 was as under:
“45. Following machinery for poultry Import and supply
sector :
(i) Machinery for preparing feeding 8436.1000 7%
stuff
(ii) Incubators, brooders and other 8436.2100 and 8436.2900 7%
poultry equipment
(iii) Insulated sandwich panels Respective heading 7%
(iv) Poultry sheds 9406.1020 and 9406.9020 7%
(v)Evaporative air cooling system 8479.6000 7%
(vi)Evaporative cooling pad 8479.9010 7%
46. Multimedia projectors 8528.6210 10% Nil”
1189 Substituted the figure “425” vide the Finance Act, 2022 dated on 30th June, 2022
1190 Substituted the figure “17%” vide the Finance (Supplementary) Act, 2023 (No. X of 2023)], dated 23rd February, 2023

[229]
 is higher
1191
[*** *** *** ***]
1192
[*** *** *** ***]
1193
[*** *** *** *** ***
*** *** *** *** ***]
1194
[*** *** *** *** ***]
1195
[*** *** *** *** ***]
1196 ***
[*** *** *** ***

1191 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. At the time of omission Serial No. 48 was
as under:-
48. Liquefied Natural Gas 2711.1100 5% Imported by fertilizer manufacturers
for use as feedstock
1192 Omitted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018. At the time of omission Serial No. 49 was
as under:-
49. Fish feed 2309.9090 10% Nil
1193 Sr. Nos. 50 and 51 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of
omission Sr. Nos. 50 and 51 was as under:-
“50. LNG/RLNG 2711.1100 12% Import thereof
51 LNG/RLNG 2711.1100 and 12% If supplied to gas trans-mission
2710.2100 and distribution companies”
1194 Sr. No. 52 was omitted vide the Finance Act, 2022 dated 30th June, 2022. At the time of omission Sr. No. 52 was as
under:-
“52. Fertilizers (all types) Respective heading 2% Nil “
1195 Sr. No. 53 was omitted vide the Finance Act, 2025 dated 39th June, 2025. At the time of omission Sr. No. 53 was as
under:-
“53. The following cinematographic equipment 5% Subject to same limitations and conditions as
imported during the period commencing are specified in Part-1of Fifth Schedule to
on the 1st day of July, 2018 and ending on the Customs Act, 1969 for availing3%
the 30th day of June, 2023. concessionary rate of customs duty on the
import of these equipment.
(i) Projector 9007.2000
(ii) Parts and accessories for projector 9007.9200
(iii) Other instruments and apparatus for 9032.8990
cinema
(iv) Screen 9010.6000
(v) Cinematographic parts and accessories 9010.9000
(vi) 3D Glasses 9004.9000
(vii) Digital Loud Speakers 8518.2200
(viii) Digital Processor 8519.8190
(ix) Sub-woofer and Surround Speakers 8518.2990
(x) Amplifiers 8518.5000
(xi) Audio rack and termination board 7326.9090
8537.1090
(xii) Music Distribution System 8519.8990
(xiii) Seats 9401.7100
(xiv) Recliners 9401.7900
(xv) Wall Panels and metal profiles 7308.9090
(xvi) Step Lights 9405.4090
(xvii) Illuminated Signs 9405.6000
(xviii) Dry Walls 6809.1100
(xix) Ready Gips 3214.9090
1196 Sr. Nos. 54 and 55 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. No. 54 and 55 was as under:
“54. lithium iron phosphate battery (Li-Fe-PO4) 8506.5000 12% Nil
55 Fish babies / seedlings Respective headings 5% Nil”

[230]
 *** *** *** *** ***]
1197
56 Potassium Chlorate Respective headings [18%] Import and supply
(KCLO3) alongwith thereof.
rupees Provided that rate of
1198 1199 1202 1203 1204
[ [ rupees [ [ [
1200 1205
[ [60] ]]] per kilogram
1201 shall not apply on imports
[60]
]]] per made by and supplies
kilogram made to organizations
under the control of
Ministry of Defence
Production.
57 Rock phosphate Respective headings 10% If imported by fertilizer
manufacturers for use in
the manufacturing of
fertilizers.]
1206
[*** *** *** *** ***]
1207
[*** *** *** *** ***]
1208
[*** *** *** *** ***]
1209
[*** *** *** *** ***

1197 Substituted the figure “17%” vide the Finance (Supplementary) Act, 2023 (No. X of 2023)], dated 23rd February, 2023
1198 Substituted for the figure “65” vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019
1199 Substituted for the figure “70” vide the Finance Act, 2020 assented on 1st July, 2020
1200 Substituted for the figurs “80” vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1201 Substituted the figure “90” vide the Finance Act, 2022 dated on 30th June, 2022
1202 Substituted for the figure “65” vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019
1203 Substituted for the figure “70” vide the Finance Act, 2020 assented on 1st July, 2020
1204 Substituted for the figurs “70” vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1205 Substituted the figure “90” vide the Finance Act, 2022 dated on 30th June, 2022
1206 Sr. No. 58 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 58
was as under:
“58 LPG 2711.1910 10% Imports thereof and local supplies of such imported LPG.”
1207 Sr. No. 59 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 59 was as under:
“59. Products of milling 1102.2000, 1102.9000, 1103.1100, 10% If sold in retail packing
industry except wheat and 1103.1300, 1103.1900, 1104.2200, under a brand name or
meslin flour 1104.2300, 1104.2900 and 1104.3000 trademark”
1208 Omitted vide vide the Finance Act, 2022 dated on 30th June, 2022. At the time of omission Serial No. 60 was as under:-
Earlier the same serial number was deleted by Tax Laws (Third Amendment) Ordinance, 2021 (XXII OF 2021) dated
15th September, 2021
“60. Fat filled milk 1901.9090 10% If sold in retail packing under a
brand name or trademark”
1209 Sr. Nos. 61 to 64 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission Sr. Nos. 61 to 64 was as under:
“61. Silver, in unworked 7106.1000, 7106.9110 and 1%
condition 7106.9190
62. Gold, in unworked 7108.1100, 7108.1210 and 1%
condition 7108.1290
63. Articles of jewellery, or 71.13 1.5% of value of gold, No input tax adjustment to
parts thereof, of precious plus 2% of value of be allowed except of the tax
metal or of metal clad with diamond, used paid on gold
precious metal. therein, plus 3% of
making charges

[231]
 *** *** *** *** ***
*** *** *** *** ***
*** *** *** *** ***]
1210
[*** *** *** *** ***]
1211
[*** *** *** *** ***]
1212
[*** *** *** *** ***
*** *** *** *** ***]
1213
[*** *** *** *** ***]
1214
[*** *** *** *** ***
*** *** *** *** ***]

64. Prepared Food, foodstuff Respective headings 7.5% Supplies only, subject to
and sweetmeats supplied condition that no input tax
by restaurants, bakeries, shall be adjusted”
caterers and sweetmeat
shops
1210 Sr. No. 65 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
65 was as under:-
“65. Ginned cotton Respective headings 10%”
1211 Sr. No. 66 was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission S. No. 66
was as under:
“66. Supplies as made from retail Respective 15% if supplied goods are finished fabric, and
outlets as are integrated with headings locally manufactured finished articles of
Board’s computerized system for textile and textile made-ups and leather and
realtime reporting of sales artificial leather subject to the condition that
they have maintained 4% value addition
during the last six months”
1212 Sr. Nos. 66A and 66B was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 66A and 66B was as under:
“66A Supplies excluding those specified in Respective headings 16% If payment is made through
S. No. 66, as made from retail outlets digital mode.
integrated with Board's Computerized
System for real time reporting of
sales
66B. Import of remeltable scrap Respective headings 14% If imported by steel melters.”
1213 Sr. No. 67 was omitted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021. At the time of omission Sr. No.
67 was as under:-
“67. LNG imported for servicing CNG sector and local 2711.1100, 5%”
supplies thereof 2711.2100
1214 Sr. Nos. 68 and 69 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January,
2022. At the time of omission S. Nos. 68 and 69 was as under:
“68. Frozen prepared or preserved sausages and 1601.0000 8% If sold in retail packing under a
similar products of poultry meat or meat brand name or trademark
offal
69. Meat and similar products of prepared frozen 1602.3200, 8% If sold in retail packing under a
or preserved meat or meat offal of all types 1602.3900, brand name or trade mark”
including poultry, meat and fish 1602.5000,
1604.1100,
1604.1200,
1604.1300,
1604.1400,
1604.1500,
1604.1600,
1604.1900,
1604.2010,
1604.2020 and
1604.2090

[232]
1215
[70.Following locally Respective heading 1% Local supplies only]
manufactured electric
vehicles
(i) Road Tractors for
semitrailers (Electric
Prime Movers)
(ii) Electric Buses
(iii) Three Wheeler
Electric Rickshaw
(iv) Three Wheeler
Electric Loader
(v) Electric Trucks
(vi) Electric Motorcycle
1216
[71. Following locally Respective heading 1% If supplied locally
manufactured or assembled
electric vehicles (4
wheelers) till 30th June,
2026:
(i) Small cars/ SUVs with
50 Kwh battery or below;
and
(ii) Light commercial
vehicles (LCVs) with 150
kwh battery or below
1217
[*** *** *** *** ***]
1218
[73. Locally manufactured
Hybrid electric Vehicle
1219
[till 30th June, 2026]-
(a) Upto 1800 cc 87.03 8.5%

1215 Sr. No. 70 was substituted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
At the time of substitution Sr. No. 40 was as under:
“70 Following locally manufactured electric vehicles
Following locally manufactured electric vehicles 8701.2060 1% Local supplies only”
(ii) Electric Buses 8702.4090 1%
(iii) Three Wheeler Electric Rickshaw 8703.8030 1%
(iv) Three Wheeler Electric Loader 8704.9030 1%
(v) Electric Trucks 8704.9059 1%
(vi) Electric Motorcycle 8711.6090 1%
1216 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1217 Sr. No. 71 was omitted vide the Finance Act, 2025 dated 29th June, 2025. At the time of omission Sr. No. 71 was as
under:-
“72. Motorcars 87.03 12.5% Locally manufactured or assembled
motorcars of cylinder capacity upto
850cc”
1218 Sr. No. 73 was substituted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022.
At the time of substitution Sr. No. 73 was as under:
“73. Import and local supply of Hybrid Electric
Vehicles:
(a) Upto 1800 cc
(b) From 1801 cc to 2500 cc 87.03 8.5%.
87.03 12.75%;”
1219 Inserted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

[233]
 (b) From 1801 cc to 2500 87.03 12.75%]
cc
74. Goods supplied from tax- Respective headings 16%.]
exempt areas of erstwhile
FATA/PATA to the taxable
areas
1220
[*** *** *** *** ***]
1221
[*** *** *** *** ***]
1222
[77. Imported personal 8471.3020 and 10%]
computers and Laptop 8471.3010
computers, notebooks
whether or
not incorporating
multimedia kit
1223
[78 Supply of locally 71.13 3% No input tax shall be
manufactured articles of adjusted
jewellery, or parts thereof,
of precious metal or of
metal clad with precious
metal.
79 Electric vehicle in CBU 8703.8090 12.5%
condition of 50 kwh battery
or below
80 EV transport buses of 25 Respective heading 1%
seats or more in CBU
condition
1224
[81. Substances registered as Respective Headings 1% Subject to the conditions

1220 Sr. No. 75 was omitted vide the Finance Act, 2022 dated 30th June, 2022. At the time of omission Sr. No. 75 was as
under:-
“75. Import of electric vehicle in 8703.8090 12.5%”
CBU conditions
1221 Sr. No. 76 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At
the time of omission S. No. 46 was as under:
“76. Business to business transactions specified by Respective 16.9% If payment is made through
the Board through a notification in official headings digital mode.”
Gazette subject to such conditions and
restrictions as specified therein.
1222 Sr. No. 77 was substituted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of substitution S. No.
77 was as under:
“77. Personal computers and Laptop computers, 8471.3020 and 5% If imported in CBU
notebooks whether or not incorporating 8471.3010 condition”
multimedia kit
1223 Added vide the Finance Act, 2022 dated on 30th June, 2022
1224 Sr. Nos. 81 & 82 was substituted vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023. At the time of
substitution Sr. Nos. 81 & 82 was as under:-
“81 Manufacture or import of substances Respective 1% Subject to the conditions that:
registered as drugs under the Drugs Act, heading (i) Tax charged and deposited by the
1976 (XXXI of 1976) manufacturer or importer, as the case may be,
shall be final discharge of tax in the supply
chain
(ii) No input tax shall be adjusted by the
manufacturer or importer

[234]
 drugs under the Drugs Act, that:
1976 (XXXI of 1976) (i) Tax charged and
1225
[***] deposited by the
manufacturer or importer,
as the case may be, shall
be final discharge of tax
in the supply chain
(ii) No input tax shall be
adjusted in the supply
chain.
82 Raw materials for the basic Respective Headings 1% Subject to the conditions
manufacture of that:
pharmaceutical active (i) DRAP shall certify
ingredients and for item-wise requirement of
manufacture of manufacturers of drugs
pharmaceutical products, and APIs and in case of
provided that in case of import shall furnish all
import, only such raw relevant information to
materials shall be entitled Pakistan Customs
to reduced rate as specified Computerized System;
in column (4) which are and
liable to customs duty not (ii) No input tax shall be
exceeding eleven per cent adjusted in the supply
ad valorem, either under chain.]
the First Schedule or Fifth
Schedule to the Customs
Act, 1969 (IV of 1969) or
under a notification issued
under section 19 thereof.
1226
[83 DAP Respective Headings 5% Subject to the condition
that no refund of
excessive input tax, if
any, shall be admissible.]

82 Active Pharmaceutical Ingredients, Respective 1% Subject to the conditions that:

excluding excipients, for manufacture of heading (i) DRAP shall certify item-wise requirement of
drugs registered under the Drugs Act, manufacturers of drugs and APIs and in case of
1976 (XXXI of 1976) or raw materials import shall furnish all relevant information to
for the basic manufacture of Pakistan Customs Computerized System; and
pharmaceutical active ingredients. (ii) No input tax shall be adjusted by the
manufacturer or importer.”
1225 Omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of omission para was as under:-
“and medicaments as are classifiable under chapter 30 of the First Schedule to the Customs Act, 1969 (IV of 1969)
except the following, even if medicated or medicinal in nature, namely:-
(a) filled infusion solution bags imported with or without infusion given sets;
(b) scrubs, detergents and washing preparations;
(c) soft soap or no soap;
(d) adhesive plaster;
(e) surgical tapes;
(f) liquid paraffin;
(g) disinfectants, and
(h) cosmetics and toilet preparations.
This substitution shall be deemed to have been made from the 1st day of July, 2022.”
1226 Added vide the Finance Act, 2023 (XXXIV of 2023) dated 26th June, 2023.

[235]
1227
[84 (i) Colors in sets 3213.1000 10%
(ii) Writing, drawing 3215.9010 and
and marking inks 3215.9090
(iii) Erasers 4016.9210 and
4016.9290
(iv) Pencil sharpeners 8214.1000
(v) other drawing, 9017.2000
marking out or
mathematical calculating
instruments (geometry box)
(vi) Pens, ball pens, 96.08
markers and porous tipped
pens
(vii) Pencils including 96.09
color pencils
85. Oil cake and other solid 2306.1000 10%
residue
86. Tractors 8701.9220 and 10%
8701.9320
87. Local supply of Respective headings 10%
vermicillies, sheer mal, bun
and rusk excluding those
sold in bakeries, and sweet
shops falling in the
category of Tier-1 retailers.
88. Local supply of poultry 2306.3000, 2306.4900 10%]
feed, cattle feed, sunflower and respective headings
seed meal, rape seed meal
and canola seed meal
1228
[89. (i) imports of plant, Respective heading 10%
machinery, and equipment (for
for installation in the tribal 2025-26)
areas, and import of
industrial inputs by 12%
industries located in the (for
tribal areas, as defined in 2026-27)
the Constitution of the
Islamic Republic of 14%
Pakistan; and (for
(ii) and supplies within 2027-28)
the tribal areas
Provided that, in 16%
case of imports, the same (for
shall be allowed clearance 2028-29)
by the Customs authorities
in accordance with quota
determined by IOCO.

1227 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
1228 Added vide Finance Act, 2025 dated 29th June, 2005

[236]
 Provided further
that if plant, machinery and
equipment, on which
reduced rate is availed
under this serial number, is
transferred or supplied
outside the tribal areas, the
differential amount of tax
shall be paid at applicable
rate.
90. Photovoltaic cells whether 8541.4200 and 10%]
or not assembled in 8541.4300
modules or made up into
panels
1229
[***]

1229 Table 2 was omitted vide the Finance Supplementary Act, 2022 (Act No. IV of 2022) dated 15th January, 2022. At the
time of omission Table 2 was as under:-
“Table-2
Plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of the Annexure
below, falling under the HS Codes specified in column (3) of that Annexure, shall be charged to sales tax at the rate of
five percent, except goods mentioned in serial numbers 1, 5 and 6 of the Annexure which shall be charged at the rate of
ten percent,], subject to the following conditions, besides the conditions specified in column (4) of the Annexure,
namely:--
(i) the imported goods as arc not listed in the locally manufactured items, notified through a Customs General
Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering
Development Board.
(ii) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the
importing company shall certify in the prescribed manner and format as per Annex-A that the imported items
are the company's bonafide requirement. He shall furnish all relevant information Online to Pakistan Customs
Computerized System against a specific user ID and password obtained under section 155D of the Customs
Act, 1969. In already computerized Collectorates or Customs stations where the Pakistan Customs
Computerized System is not operational, the Project Director or any other person authorized by the Collector
in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily
basis whereas entry of the data obtained from the customs stations which have not yet been computerized
shall be made on weekly basis; and
(iii) in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time
of arrival of first partial shipment, furnish complete details of the machinery, equipment and components
required for the complete plant, duly supported by the contract, layout plan and drawings.
Explanation.-In this Table the expression, capital goods mean any plant, machinery, equipment, spares and
accessories, classified in chapters 84, 85 or any other chapter of the Pakistan Customs Tariff required for-
(a) the manufacture or production of any goods, and includes refractory bricks and materials required for setting
up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power
generating sets and equipment, instruments for testing, research and development, quality control, pollution
control and the like; or
(b) use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry
industry.
Annexure
S. No. Description PCT Conditions
heading
(1) (2) (3) (4)
1. Machinery and equipment for development of Respective Nil
grain handling and storage facilities including headings
silos.
2. Cool chain machinery and equipment. Respective Nil
headings
*** *** *** ***

[237]
 4. 1. Machinery, equipment, materials, capital Respective 1. This concession shall be available to
goods, specialized vehicles (4x4 non luxury) headings those Mineral Exploration and
i.e. single or double cabin pickups, Extraction Companies or their
accessories, spares, chemicals and authorized operators or contractors who
consumables meant for mineral exploration hold permits, licenses, leases and who
phase. enter into agreements with the
2. Construction machinery, equipment and Government of Pakistan or a Provincial
specialized vehicles, excluding passenger Government.
vehicles, imported on temporary basis as 2. Temporarily imported goods shall be
required for the exploration phase. cleared against a security in the form of
a post-dated cheque for the differential
amount between the statutory rate of
customs duty and sales tax and the
amount payable along with an
undertaking to pay the customs duty and
sales tax at the statutory rates in case
such goods are not re-exported on
conclusion of the project.
3. The goods shall not be sold or
otherwise disposed of without prior
approval of the FBR and the payment of
customs duties and taxes leviable at the
time of import. These shall however be
allowed to be transferred to other
entitled mining companies with prior
approval of the Board.
5. Complete plants for relocated industries. Respective Nil
headings
6. Machinery, equipment and other capital goods Respective Nil
meant for initial installation, balancing, headings
modernization, replacement or expansion of
oil refining (mineral oil, hydro-cracking and
other value added petroleum products),
petrochemical and petrochemical downstream
products including fibers and heavy chemical
industry, cryogenic facility for ethylene
storage and handling.
*** *** *** ***
8. 1. Milk chillers. 8418.6910 If imported by registered manufacturer
2. Tubular heat exchanger (for and who is member of Pakistan Dairy
pasteurization). 8418.6990 Association.
3. Milk processing plant, milk spray drying 8419.5000
plant, Milk UHT plant.
4. Milk filters 8419.3900
5. Any other machinery and equipment for and
manufacturing of dairy products. 8419.8100
8421.2900
Chapter 84
and 85
9 Capital goods otherwise not exempted, for Respective The concession will be available in
Transmission Line Projects. heading respect of those Transmission Line
Projects which are being executed under
Standard Implementation Agreement
under Policy Framework for Private
Sector Transmission Line Projects, 2015
and Projects Specific Transmission
Services Agreement. Provided that sales
tax charged under this provision shall be
non-adjustable and non-refundable.

[238]
 1230
[NINTH SCHEDULE
[See sub-section (3B) of section 3]
1231
Table-I

Annex-A
Header Information
NTN/FTN of Importer Regulatory authority no. Name of Regulatory authority
(1) (2) (3)
Details of Input goods (to be filled by the chief executive of the importing Goods imported (Collectorate of import)
company)
Description Specs Custom Sales Tax UOM Quantity Collectorate CRN/ Date of
Duty rate rate imported Mach CRN/
HS Code

Quantity
WHT
(applicable) (applicable) No. Mach.
No.

(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
CERTIFICATE. It is certified that the description and quantity mentioned above are commensurate with the project
requirement and that the same are not manufactured locally. It is further certified that the above items shall not be used
for any other purpose.
Signature of Chief Executive, or
the person next in hierarchy duly
authorized by the Chief Executive
Name
N.I.C. No.
NOTE:-In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished
on line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969.
Explanation.-
Chief Executive means.-
1. owner of the firm, in case of sole proprietorship; or
2. partner of firm having major share, in case of partnership firm; or
3. Chief Executive Officer or the Managing Director in case of limited company or multinational organization; or
4. Principal Officer in case of a foreign company.
Annex-B
Header Information
NTN/FTN of Importer Approval No.
(1) (2)
Details of Input goods (to be filled by the authorized officer of the Goods imported (Collectorate of import)
Regulatory Authority)
Description Custom Duty Sales Tax Quantity Collectorate CRN/ Date of
rate (applicable) rate imported Mach CRN/
HS Code

Quantity
Specs

UOM
WHT

(applicable) No. Mach.

No.

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
CERTIFICATE. Before certifying the above-authorized officer of the Regulatory Authority shall ensure that the goods are
genuine and bonafide requirement of the project and that the same are not manufactured locally.
Signature
Designation
NOTE:-In case of clearance through Pakistan Customs Computerized System the above information shall be furnished
on line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969”
1230 Added vide the Finance Act, 2014
1231 Table was substituted vide the Finance Act, 2020 assented on 1st July, 2020. At the time of substitution table was as
under:-
TABLE

[239]
 Sales Tax on supply (payable at the time of supply by CMOs):
S. No. Description / Specification of Goods Sales tax on supply(payable at
the time of supply by CMOs)
(1) (2) (3)
1. Subscriber Identification Module (SIM) Cards Rs. 250
1232
[Provided that the provisions of Table-I shall not be applicable from 1st July, 2020 onwards.
Explanation.—For removal of doubt, it is clarified that the above amendment in law shall not
prejudicially affect, the Board’s stance or position in pending cases on the issue of chargeability of sales
tax on SIM cards before any court of law.]
1233
[Table-II

S. Description / Specification of Goods Sales tax on import Sales tax (chargeable at Sales tax on supply
No. or local supply the time of registration of (payable at time of
IMEI number by CMOs) supply by CMOs)
1. Subscriber Identification Module -- -- Rs. 250
(SIM Cards)
2. Cellular mobile phones or satellite -
phones to be charged on the basis of
import value per set, or equivalent
value in rupees in case of supply by
the manufacturer, at the rate as
indicated against each category:--
A. Not exceeding US$ 30 Rs. 130 Rs. 130
B. Exceeding US$ 30 but not Rs. 200 Rs. 200
exceeding US$ 100
C. Exceeding US$ 100 but not Rs. 1,680 Rs. 1,680
exceeding US$ 200
D. Exceeding US$ 200 but not Rs. 1,740 Rs. 1,740
exceeding US$ 350
E. Exceeding US$ 350 but not Rs. 5,400 Rs. 5,400
exceeding US$ 500
F. Exceeding US$ 500 Rs. 9,270 Rs. 9,270]
1232 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1233 Table-II was substituted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of substitution Table-II
was as under:-
“Table-II
Cellular mobile phones in CKD/CBU form:
S. No. Description / Specification of Goods Sales tax on CBUs at the Sales tax on Sales tax on supply of
time of import or import in locally manufactured
registration (IMEI CKD/SKD mobile phones in CBU
number by CMOs) condition condition in addition to
tax under column(4)
(1) (2) (3) (4) (5)
1. Cellular mobile phones or satellite
phones to be charged on the basis of
import value per set, or equivalent
value in rupees in case of supply by the
manufacturer, at the rate as indicated
against each category:--
A. Not exceeding US$ 30 (excluding Rs. 130 Rs. 10 Rs. 10
smart phones)
B. Not exceeding US$ 30 (smart Rs. 200 Rs. 10 Rs. 10
phones)
C. Exceeding US$ 30 but not Rs. 200 Rs. 10 Rs. 10
exceeding US$ 100

[240]
 Cellular mobile phones in CKD/CBU form:
S. No. Description / Specification Sales tax on Sales tax on Sales tax on
of Goods CBUs at the time import in CKD/ supply of locally
of import or SKD condition manufactured
registration mobile phones in
(IMEI number CBU condition
by CMOs) in addition to tax
under column (4)
(1) (2) (3) (4) (5)
1. Cellular mobile phones or -
satellite phones to be
charged on the basis of
import value per set, or
equivalent value in rupees
in case of supply by the
manufacturer, at the rate as
indicated against each
category:- -
A. Not exceeding US$ 500 18% ad valorem 18% ad valorem 18% ad valorem
B. Exceeding US$ 500 25% ad valorem 18% ad valorem 18% ad valorem]
LIABILITY, PROCEDURE AND CONDITIONS
1234
[(i) The liability to pay the tax on the goods specified in this Schedule shall be–

D. Exceeding US$ 100 but not Rs. 1,680 Rs. 10 Rs. 10

exceeding US$ 200
E. Exceeding US$ 200 but not 18% ad valorem Rs. 1,740 Rs. 10
exceeding US$ 350
F. Exceeding US$ 350 but not 18% ad valorem Rs. 5,400 Rs. 10
exceeding US$ 500
G. Exceeding US$ 500 25% ad valorem Rs. 9,270 Rs. 10”
1234 Conditions i to vii was substituted vide the Finance Act, 2020 assented on 1st July, 2020. At the time of substitution
conditions i to vii was as under:-
“(i) In case of the goods specified against S. No. 1 of the Table, the liability to charge, collect and pay tax shall be
on the Cellular Mobile Operator (CMO) at the time of supply. In case of the goods specified against S. No.2,
the liability to pay sales tax at the time of import shall be on the importer, and the liability to charge, collect
and pay sales tax payable on supplies shall be on the Cellular Mobile Operator at the time of registering
International Mobile Equipment Identity (IMEI) number in his system.
(ii) The Cellular Mobile Operators shall, if not already registered, obtain registration under the Sales Tax Act,
1990.
(iii) No IMEI shall be registered in his system by a Cellular Mobile Operator without charging and collecting the
sales tax as specified in the Table.
(iv) The Cellular Mobile Operator shall deposit the sales tax so collected through his monthly tax return in the
manner prescribed in section 26 of the Sales Tax Act, 1990 and rules made thereunder.
(v) The Cellular Mobile Operator shall maintain proper records of all IMEI numbers registered for a period of six
years, and such records shall be produced for inspection, audit or verification, as and when required, by an
authorized officer of Inland Revenue.
(vi) The Pakistan Telecommunication Authority shall provide data regarding IMEI numbers registered with other
Cellular Mobile Operators to prevent double taxation on the same IMEI number in case of switching by a
subscriber from one operator to another, and to provide data regarding registration of IMEI numbers to the
Board on monthly basis.
(via) The sales tax as indicated in column (3) of the Table above shall be paid by the importer, in case of imports
and by the manufacturer, in case of locally manufactured cellular mobile phones;
(vii) No adjustment of input tax shall be admissible to the Cellular Mobile Operator or any purchaser of cellular
mobile phone against the sales tax charged and paid in terms of this Schedule. The tax specified in column

[241]
 (a) in case of the goods specified in Table-I, of the Cellular Mobile Operator (CMO);
(b) in case of goods specified in columns (3) and (4) of Table-II, of the importer; and
(c) in case of goods specified in column (5) of Table-II, of the local manufacturers of
the goods.
(ii) The time of payment of tax due under this Schedule shall be the same as
specified in section 6;
1235
[***]
1236
[THE TENTH SCHEDULE
[See sub-section (1B) of section 3]
1237 1238
[(1)] The tax on bricks, falling in PCT heading [6901.0000], shall be paid on fixed basis,
1239
[***] at the rates specified in the Table below:-
S. No. Region or area Tax payable per
month
(1) (2) (3)
1. Lahore, Rawalpindi and Islamabad districts Rs. 12,500
2. Attock, Chakwal, Jehlum, Mandi Bahauddin, Sargodha, Gujrat, Rs. 10,000
Sialkot, Narowal, Gujranwala, Hafizabad, Sheikhupura, Kasur,
Nankana Sahib, Chiniot, Faisalabad, Jhang, Toba Tek Singh, Okara
and Sahiwal districts
3. Khushab, Mianwali, Bhakar, Layyah, Muzaffarghar, Dera Ghazi Rs. 7,500
Khan, Rajanpur, Multan, Lodhran, Khanewal, Vehari, Bahawalpur,
Pakpattan, Bahawalnagar, Rahim Yar Khan districts; and Sindh,
Khyber-Pakhtunkhwa and Baluchistan provinces
1240
[(2) Tax on cement or concrete blocks falling in PCT heading 6810.1100, shall be charged on
fixed basis as per the following Table, namely:-
TABLE
S. No. Item Tax
(1) (2) (3)

(4) of the Table shall be charged, collected and paid with effect from such date as may be specified by the
Board and the sales tax specified in column (3) shall stand withdrawn from the date so specified.
Note: Notwithstanding anything contained in any other law for the time being in force, the levy, collection and
payment of sales tax under notification No. S.R.O. 460(I)/2013, dated the 30th May, 2013, shall be deemed to
always have been lawfully and validly levied, collected and paid.”
1235 Clauses (iii), (iv) and (v) was omitted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of
omission Clauses (iii), (iv) and (v) was as under:-
“(iii) The tax paid under this Schedule shall not be deductible against the output tax payable by the purchaser or
importer of the goods specified in this Schedule;
(iv) The input tax paid on the input goods attributable to the goods specified in this Schedule shall not be
deductible for the tax payable under this Schedule; and
(v) The Board may prescribe further mode and manner of payment of tax due under this Schedule.”
1236 Added vide Finance Act, 2019 (V of 2019), assented on 30th June, 2019
1237 Numbered vide the Finance Act, 2020 assented on 1st July, 2020
1238 Substituted for the PCT “Rs. 6901.1000” vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019)
assented on 27th December, 2019
1239 Omitted the words “on monthly return,” vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019)
assented on 27th December, 2019
1240 Added vide the Finance Act, 2020 assented on 1st July, 2020

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 1. Paver Rs. 2 per sq.ft
2. Hollow block Rs. 3 per piece
(volume less than 1 cubic feet)
3. Solid block Rs. 3 per piece
(volume less than 1 cubic feet)
4. Kerb Stone Rs. 5 per piece
(volume less than 1 cubic feet)
5. Kerb stone Rs. 10 per piece”;and
(volume greater than 1 cubic feet)
Note: No input tax adjustment shall be allowed against the tax paid under this Schedule.]
THE
ELEVENTH SCHEDULE
[see sub-section (7) 1241[and (7A)] of section 3]
TABLE
The rates for withholding or deduction by the withholding agent 1242[are specified as below
provided that withholding of tax under this Schedule shall not be applicable to the goods and supplies
specified vide clauses (i) to (viii) after the Table]
S. No. Withholding agent Supplier category Rate or extent of
deduction
(1) (2) (3) (4)
1243 th
1. (a) Federal and provincial [Active Taxpayers] 1/5 of Sales Tax as
government departments; shown on invoice
autonomous bodies; and public
sector organizations
(b) Companies as defined in the
Income Tax Ordinance, 2001
(XLIX of 2001)
1244
2. (a) Federal and provincial [Active Taxpayers] 1/10th of Sales Tax
government departments; registered as a wholesaler, as shown on invoice
autonomous bodies; and public dealer or distributor
sector organizations
(b) Companies as defined in the
Income Tax Ordinance, 2001
(XLIX of 2001)
1245
3. Federal and provincial government [persons other than Active Whole of the tax
departments; autonomous bodies; and Taxpayers] involved or as
public sector organizations applicable to
supplies on the
basis of gross value
of supplies
1247
4. Companies as defined in the Income [persons other than Active 5% of gross value

1241 Inserted vide Finance Act, 2025 dated 29th June, 2005
1242 Substituted the words “shall not be applicable to goods and supplies specified after the end of this Table” vide the
Finance Act, 2020 assented on 1st July, 2020
1243 Substituted the words “Registered persons” vide the Finance Act, 2020 assented on 1st July, 2020
1244 Substituted the words “Persons” vide the Finance Act, 2020 assented on 1st July, 2020
1245 Substituted the words “Unregistered persons” vide the Finance Act, 2020 assented on 1st July, 2020

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 Tax Ordinance, 2001 (XLIX of 2001) Taxpayers] of supplies
1246
[excluding companies exporting
surgical instruments]
5. Registered persons as recipient of Person providing advertisement Whole of sales tax
advertisement services services applicable
1248
6. Registered persons purchasing cane [persons other than Active Whole of sales tax
molasses. Taxpayers] applicable
1249 1251
[7. Registered persons manufacturing Persons supplying any kind of [80%] of the
lead batteries lead under chapter 78 (PCT sales tax
Headings: 7801.1000, applicable”.
7801.9100, 7801.9900,
7802.0000, 78.03, 7804.1100,
7804.1900, 7804.2000, 78.05,
7806.0010, 7806.0020,
7806.0090) or scrap batteries
under chapter 85 (PCT
1250
Headings: [Respective
headings])
1252
[8. Payment intermediaries and couriers Persons supplying digitally 2% of gross value
in respect of digitally ordered goods ordered goods from within of supplies.]
from within Pakistan. Pakistan through online market
place, website, software
applications
1253
[9. Registered persons manufacturing Persons supplying any kind of 80% of the sales tax
cement gypsum under chapter 25 (PCT applicable
headings 2520.1010, 2520.1020,
2521.0000) or limestone flux
under chapter 25 (PCT headings
2520.1010, 2520.1020,
2521.0000)
10. Registered persons Persons supplying any kind of 80% of the sales tax
coal under chapter 27 (PCT applicable
headings 2701.1100, 2701.1200,
2701.1900, 2701.2000,
2704.0010, 2704.0020,
2704.0090)
11. Registered persons Persons supplying any kind of 80% of the sales tax
waste of paper and paper board applicable
(Respective headings)

1247 Substituted the words “Unregistered persons” vide the Finance Act, 2020 assented on 1st July, 2020
1246 Added vide the Finance Act, 2022 dated on 30th June, 2022
1248 Substituted the words “Unregistered persons” vide the Finance Act, 2020 assented on 1st July, 2020
1249 Inserted vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1250 Substituted the PCT Codes “8548.1010” and “8548.1090” vide the Finance Act, 2022 dated on 30th June, 2022
1251 Substituted the figure “75%” vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
1252 Sr. No. 8 was substituted vide the Finance Act, 2025 dated 29th June, 2025. At the time of omission Sr. No. 8 was as
under:-
“8. Online market place Persons other than active 1% of gross value of supplies:
taxpayers Provided that the provisions of this entry shall be
effective from the date as notified by the Board. “
1253 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024

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 12. Registered persons Persons supplying any kind of 80% of the sales tax
plastic waste (Respective applicable
headings)
13. Registered persons Persons supplying crush stone 80% of the sales tax
and silica applicable]
(i) Electrical energy;
(ii) Natural Gas;
(iii) Petroleum Products as supplied by petroleum production and exploration companies, oil
refineries, oil marketing companies and dealers of motor spirit and high speed diesel;
(iv) Vegetable ghee and cooking oil;
(v) Telecommunication services;
(vi) Goods specified in the Third Schedule to the Sales Tax Act, 1990;
(vii) Supplies made by importers who paid value addition tax on such goods at the time of
import;
1254
[(viii) Supplies made by an Active Taxpayer as defined in the Sales Tax Act, 1990 to another
registered person with the exception of supplies referred to in S. Nos. 5, 7, 9, 10, 11, 12
and 13 of the Table.]
1255
[(ix) Supply of sand, stone, gravel/crush and clay to low cost housing schemes sponsored or
approved by Naya Pakistan Housing and Development Authority.]
THE
TWELFTH SCHEDULE
[See sub-section (2) of section 7A]
TABLE
S. No. Goods or class of goods PCT Heading Rate
(1) (2) (3) (4)
1. All imported goods subject to exclusions as in Respective Heading 3% ad valorem
conditions and procedure given after the Table
Procedure and conditions:–
(1) The sales tax on account of minimum value addition as payable under this Schedule
(hereinafter referred to as value addition tax), shall be levied and collected at import stage from the
importer on all taxable goods as are chargeable to tax under section 3 of the Act or any notification issued
thereunder at the rate specified in the Table in addition to the tax chargeable under section 3 of the Act or
a notification issued thereunder:
(2) The value addition tax under this Schedule shall not be charged on,—
1256
[(i) Raw materials and intermediary goods imported by a manufacturer for in-house
consumption 1257[excluding compressor scrap (PCT heading 7204.4940), motor scrap
(PCT heading 7204.4990) and copper cable cutting scrap (PCT heading 7404.0090)]]

1254 Clause (viii) was substituted vide Finance Act, 2024 (X of 2024) dated 29th June, 2024. At the time of substitution
clause (iii) was as under:-
“(viii) Supplies made by an Active Taxpayer as defined in the Sales Tax Act, 1990 to another registered persons
with exception of advertisement services; and”
1255 Added vide the Finance Act, 2020 assented on 1st July, 2020

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 (ii) The petroleum products falling in Chapter 27 of Pakistan Customs Tariff as imported by
a licensed Oil Marketing Company for sale in the country;
(iii) Registered service providers importing goods for their in-house business use for
furtherance of their taxable activity and not intended for further supply;
(iv) Cellular mobile phones or satellite phones 1258[(PCT headings 8517.1419, 8517.1430 and
8517.1390)];
(v) LNG / RLNG;
(vi) second hand and worn clothing or footwear (PCT Heading 6309.000);
(vii) gold, in un-worked condition; 1259[***]
(viii) silver, in un-worked condition 1260[***]
1261
[(ix) the goods as specified in the Third Schedule on which tax is paid on retail price basis
1262
[; and]]
1263
[(x) plant, machinery and equipment falling in Chapters 84 and 85 of the First Schedule to the
Customs Act, 1969 (IV of 1969), as are imported by a manufacturer for in-house
installation or use.]
1264
[(xi) Electric vehicles (4 wheelers) CKD kits for small cars/SUVs, with 50 kwh battery or
below and LCVs with 150 kwh battery of below till 30th June, 2026;
(xii) Electric vehicles (4 wheelers) small cars/SUVs, with 50 kwh battery or below and LCVs
with 150 kwh battery of below in CBU condition till 30th June, 2026”;
(xiii) Electric vehicles (2-3 wheelers and heavy commercial vehicles) in CBU condition till
30th June, 2025; and
(xiv) motor cars of cylinder capacity upto 850cc]
(3) The value addition tax paid at import stage shall form part of input tax, and the importer
shall deduct the same from the output tax due for the tax period, subject to limitations and restrictions
under the Act, for determining his net liability. The excess of input tax over output tax shall be carried
forwarded to the next tax period as provided in section 10 of the Act.
1265
[(4) The refund of excess input tax over output tax, which is attributable to tax paid under this
Schedule, shall not be refunded to a registered person in any case, except that as used for making of zero-
rated supplies.]

1256 Clause (i) was substituted vide the Finance Act, 2020 assented on 1st July, 2020. At the time of substitution clause (i)
was as under:-
“(i) Raw materials and intermediary goods meant for use in an industrial process which are subject to customs
duty at a rate less than 16% ad valorem under First Schedule to the Customs Act, 1969;”
1257 Added vide the Finance Act, 2022 dated on 30th June, 2022
1258 Added vide Finance Act, 2024 (X of 2024) dated 29th June, 2024
1259 Omitted for the world “and” vide SRO 1321(I)/2019, dated 8th November, 2019
1260 Omitted vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th December, 2019
1261 Added vide SRO 1321(I)/2019, dated 8th November, 2019
1262 Substituted vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th December, 2019
1263 Added vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th December, 2019
1264 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021
1265 Clause-4 was substituted vide Tax Laws (Second Amendment) Ordinance, 2019 (XXVI of 2019) assented on 27th
December, 2019. At the time of substitution sub-clause 4 was as under:-
“(4) In no case, the refund of excess input tax over output tax, which is attributable to tax paid at import stage,
shall be refunded to a registered person.”

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 (5) The registered person, if also dealing in goods other than imported goods, shall be
entitled to file refund claim of excess carried forward input tax for a period as provided in section 10 or in
a notification issued there under by the Board after deducting the amount attributable to the tax paid at
import stage i.e. sum of amounts paid during the claim period and brought forward to claim period. Such
deducted amount may be carried forward to subsequent tax period.]
1266
[THIRTEENTH SCHEDULE
(Minimum Production)
[See sub-section (9AA) of section 3]
Minimum production of steel products.—
The minimum production for steel products shall be determined as per criterion specified against
each in the Table below:
Table
S. No. Product Production criteria
(1) (2) (3)
1. Steel billets and ingots One metric ton per 700 kwh of electricity
consumed
2. Steel bars and other re-rolled long profiles of One metric ton per 110 kwh of electricity
steel consumed
3. Ship plates and other re-rollable scrap 85% of the weight of the vessel imported for
breaking”; and
Procedure and conditions:—
(i) both actual and minimum production and the local supplies shall be declared in the
monthly return. In case, the minimum production exceeds actual supplies for the month,
the liability to pay tax shall be discharged on the basis of minimum production:
Provided that in case, in a subsequent month, the actual supplies exceed the
minimum production, the registered person shall be entitled to get adjustment of excess
tax on account of excess of minimum production over actual supplies:
Provided further that in a full year, as per financial year of the company or
registered person, or period starting from July to June of next year, in other cases, the tax
actually paid shall not be less than the liability determined on the basis of minimum
production for that year and in case of excess payment no refund shall be admissible:
Provided also that in case of ship-breaking, the liability against minimum
production, or actual supplies, whichever is higher, shall be deposited on monthly basis
on proportionate basis depending upon the time required to break the vessel;
(ii) the payment of tax on ship plates in aforesaid manner does not absolve ship breakers of
any tax liability in respect of items other than ship plates obtained by ship-breaking;
(iii) the melters and re-rollers employing self-generated power shall install a tamperproof
meter for measuring their consumption. Such meter shall be duly locked in room with
keys in the custody of a nominee of the Commissioner Inland Revenue having
jurisdiction. The officers Inland Revenue having jurisdiction shall have full access to
such meter;

1266 Added vide the Finance Act, 2021 (VIII of 2021) dated 30th June, 2021

[247]
(iv) the minimum production of industrial units employing both distributed power and self-
generated power shall be determined on the basis of total electricity consumption.]

[248]