Sales Tax Act, 1990

The

Sales Tax Act, 1990

(Act No. III of 1951 as Amended

by Act VII of 1990)
As amended up to 30th June, 2024

The amendments made through

Finance Act, 2024

have been shown in Red

1
 Sales Tax Act, 1990

Contents

Chapter I…………………………………………………………………...8
Preliminary………………………………………………………… …….8
1. Short title, extent and commencement. ............................. ………..8
2. Definitions…………………………………………………… ..8-29
Chapter-II ...................................................................................... ……....30
SCOPE AND PAYMENT OF TAX………………..…………………....30
3. Scope of tax....................................................................... ..……..30
3A. Omitted ............................................................................. …..…..35
3AA. Omitted ............................................................................. ..……..35
3AAA. Omitted ............................................................................. …..…..35
3B. Collection of excess sales tax etc. ..................................... ..……..35
4. Zero rating. ........................................................................ ..……..36
5. Change in the rate of tax. .................................................. ..……..37
6. Time and manner of payment. .......................................... …..…..38
7. Determination of tax liability. ........................................... ……....40
7A. Levy and collection of tax on specified goods on value addition....42
8. Tax credit not allowed. ..................................................... ……....42
8A. Joint and several liability of registered persons in supply chain where
tax unpaid.-………………………………………………….........45
8B. Adjustable input tax. ......................................................... ……....45
9. Debit and credit note. ........................................................ …..…..47
10. Refund of input tax. .......................................................... ……....47
11. Omitted............... .............................................................. …..… .48
11A. Short paid amounts recoverable without notice.– ............. ……....48
11B. Limitation for issuing orders in certain cases ................... ……....49
11C. Power of tax authorities to modify orders, etc. ................. ……....49
11D. Best judgement Assessment. ............................................. ……....49
11E. Assessment of tax and recovery of tax not levied or short levied or
erroneously refunded. ....................................................... ……....50
11F. Failure to withhold sales tax. ............................................ ……....51
11G. Limitation for assessment. ................................................ ……....51
12. Omitted ............................................................................. ……....52
13. Exemption.― .................................................................... ……....52
Chapter-III..................................................................................... ……....54
REGISTRATION ......................................................................... ………54
14. Registration. – ................................................................... ……....54

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 Sales Tax Act, 1990

14A. Repealed.– ......................................................................... ……....54

14AB. Discontinuance of gas and electricity connections. – ....... ……....55
15. Omitted ............................................................................. ……....55
16. Omitted ............................................................................. ..……..55
17. Omitted ............................................................................. ..……..55
18. Omitted ............................................................................. …..…..55
19. Omitted ............................................................................. ..……..55
20. Omitted ............................................................................. ............55
21. De-registration, blacklisting and suspension of registration….. …55
21A. Active taxpayers list .......................................................... ………57
Chapter-IV .................................................................................... ……....57
BOOK KEEPING AND INVOICING REQUIREMENTS ......... ……....57
22. Records. ............................................................................ ……....57
23. Tax Invoices.- ................................................................... ……....59
24. Retention of record and documents for six years.- ........... ……....61
25. Audit of sales tax affairs.- ................................................. ……....61
25A. Drawing of samples.- ........................................................ ……....64
25AA. Transaction between Associates ....................................... ……....64
Chapter-V ...................................................................................... ………65
RETURNS .................................................................................... ……....65
26. Return. ............................................................................... ……....65
26A. Omitted ............................................................................. ……....67
26AA. Omitted .............................................................................. ……....67
26AB. Extension of time for furnishing returns ........................... ……....67
27. Special Returns. ................................................................ ……....68
28. Final Return. ..................................................................... ……....69
29. Return deemed to have been made. .................................. ……....69
Chapter-VI .................................................................................... ……....69
APPOINTMENT OF OFFICER OF SALES TAX & THEIR POWERS..69
30. Appointment of Authorities .............................................. ……....69
30A. Directorate General, (Intelligence and Investigation) Inland
Revenue……………......................................................... .......….71
30AB. Tax Fraud Investigation Wing Inland Revenue …………….……72
30B. Directorate General Internal Audit. .................................. ……....73
30C. Inland Revenue Services Academy. ................................. ……....73
30CA. Directorate General of Digital Initiatives…………. ……....73
30D. Directorate General of Valuation. ..................................... ………73
30DD. Directorate of Post Clearance Audit . ............................... ………74
30DDD. Directorate General of Input Output Co-efficient Organization..74

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 Sales Tax Act, 1990

30DDDA.Directorate-General of law…………………………………….74
30E. Powers and Functions of Directorate etc. ......................... ………74
31. Powers. .............................................................................. ………74
32. Delegation of powers ........................................................ ………75
32A. Audit by Special Audit Panels ......................................... ………75
32AA. Omitted. ............................................................................. ………77
Chapter-VII ................................................................................... ………78
OFFENCES AND PENALTIES................................................... ………78
33. Offences and penalties. ..................................................... ………78
33A. Omitted ............................................................................. ………90
34. Default Surcharge. ............................................................ ………91
34A. Exemption from penalty and default surcharge. ............... ………93
35. Omitted. ............................................................................ ………93
35A. Omitted. ............................................................................ ………93
36. Omitted. ............................................................................ ………93
37. Power to summon persons to give evidence and produce documents
in inquiries under the Act. ................................................. ………93
37A. Power to arrest and prosecute ........................................... ………94
37B. Procedure to be followed on arrest of a person. ................ ………95
37C. Special Judges ................................................................... ………98
37D. Cognizance of Offences by Special Judges ...................... ………98
37E. Special Judge, etc. to have exclusive Jurisdiction ............ ………99
37F. Provisions of Code of Criminal Procedure, 1898, to apply……...100
37G. Transfer of cases ............................................................... ……..100
37H. Place of Sittings ................................................................ ……..101
37I. Appeal to the High Court .................................................. ……..101
38. Authorised officers to have access to premises, stocks, accounts and
records ............................................................................... …..…101
38A. Power to call for information. ........................................... ……..102
38B. Obligation to produce documents and provide information…….102
39. Omitted ............................................................................. ……..104
40. Searches under warrant ..................................................... ……..104
40A. Omitted. ............................................................................ ……..104
40B. Posting of Inland Revenue Officer. .................................. ……..104
40C. Monitoring of Tracking by Electronic or other means.....................104
40D. Provisions relating to goods supplied from tax-exempt areas.-....105
40E. Licensing of brand name.-............................................................106
41. Omitted… ......................................................................... …… .106
42. Omitted. ............................................................................ ……..106

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 Sales Tax Act, 1990

Chapter-VIII .................................................................................. ……..107

APPEALS ..................................................................................... ……..107
43. Omitted. ............................................................................ ……..107
43A. Pecuniary jurisdiction in appeals.………………………..……...107
44. Omitted. ............................................................................ ……..108
45. Omitted. ............................................................................ ……..108
45A. Power of the Board and Commissioner to call for records………108
45B. Appeals. ............................................................................ ……..109
46. Appeals to Appellate Tribunal. ......................................... …..…111
47. Reference to the High Court.........................................….………112
47A. Alternative dispute resolution. .......................................... ..........113
47AB. Saving. .............................................................................. ..........114
Chapter-IX .................................................................................... ……..114
RECOVERY OF ARREARS ....................................................... ……..114
48. Recovery of arrears of tax.- .............................................. ……..114
Chapter-X ...................................................................................... ……..116
MISCELLANEOUS ..................................................................... ……..116
49. Sales of taxable activity or transfer of ownership.-- ......... ……..116
49A. Liquidators. ....................................................................... ……..116
50. Power to make rules. ......................................................... ……..118
50A. Computerized system. ....................................................... ……..118
50B. Electronic scrutiny and intimation……………………………....119
51. Bar of suits, prosecution and other legal proceedings. ..... ……..119
52. Appearance by authorised representative. ........................ ……..120
52A. e-intermediaries to be appointed. ...................................... ……..120
53. Estate of deceased person. ................................................ ……..121
54. Estate in bankruptcy. ......................................................... ……..121
55. Removal of difficulties. .................................................... ……..121
56. Service of order, decisions, etc. ........................................ ……..122
56A. Agreement for the exchange of information…………………….123
56AB. Real time access to information and databases………………….124
56B. Disclosure of information by a public servant .............. ……. ….125
56C. Prize schemes to promote tax culture………………………….. 126
57. Rectification of Mistake .................................................... ……..126
58. Liability for payment of tax in the case of private companies or
business enterprises ........................................................... ……..127
58A. Representatives. ................................................................ ……..127
58B. Liability and obligations of representatives. ..................... ……..129
59. Tax paid on stocks acquired before registration ............... ……..131

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 Sales Tax Act, 1990

60. Powers to deliver certain goods without payment of tax .. ……..131

61. Repayment of tax in certain cases. .................................... ……..132
61A. Repayment of tax to persons registered in Azad Jammu and
Kashmir. ............................................................................ ……..132
62. Drawback allowable on re-export.-- ................................. ……..132
63. Drawback on goods taken into use between importation and re-
exportation. ....................................................................... ……..132
64. Power to declare what goods are identifiable and to prohibit
drawback in case of specified foreign territory................. ……..133
65. Exemption of tax not levied or short levied as a result of general
practice .............................................................................. ……..133
66. Refund to be claimed within one year. ............................. ……..134
67. Delayed Refund. ............................................................... ……..135
67A. Payment of refund through sales tax refund bonds.. ......... ……..135
68. Liability of the registered person for the acts of his agent. ……..136
69. Issuance of duplicate of sales tax documents. .................. ……..137
70. Computation of limitation period...................................... ……..137
71. Special procedure. ............................................................. ……..137
72. Officers of Sales Tax to follow Board's orders, etc. ......... ……..137
72A. Reference to the authorities .......................................... ………...138
72B. Selection of audit by the Board ..................................... ………...138
72C. Reward to Inland Revenue Officers and Officials ........ ………...139
72D. Reward to whistleblowers ............................................. ………...139
73. Certain transactions not admissible. ................................. ……..140
74. Condonation of time-limit................................................. ……..142
74A. Validation. ......................................................................... ……..142
75. Application of the provisions of Act IV of 1969 to Sales Tax….143
76. Fee and service charges. ................................................... ……..143
77. Uniform……………. .................................................... …….…..143
SCHEDULES ........................................................................... ………...144
THE FIRST SCHEDULE (omitted)…. ........................................ ……..144
THE SECOND SCHEDULE (omitted) ........................................ ……..144
THE THIRD SCHEDULE ............................................................ ……..144
THE FOURTH SCHEDULE (omitted) ........................................ ……..148
THE FIFTH SCHEDULE ............................................................. ……..148
THE SIXTH SCHEDULE ............................................................ ……..153
THE SEVENTH SCHEDULE (omitted) .................................. ………...225
THE EIGHT SCHEDULE ........................................................ ………...225
THE NINTH SCHEDULE ....................................................... ………...237

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 Sales Tax Act, 1990

THE TENTH SCHEDULE ....................................................... ………...239

THE ELEVENTH SCHEDULE ............................................... ………...242
THE TWELFTH SCHEDULE……………............................................247
THE THIRTEENTH SCHEDULE ……………………………..…....249

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 Sales Tax Act, 1990

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.]

[2. Definitions.― In this Act, unless there is anything repugnant in

7

the subject or context,--

[(1) “active taxpayer” means a registered person who does not fall
8

in any of the following categories, namely:-

1
For Statements of Objects and Reasons see Gazette of Pakistan, dated the 30 th March 1951, Pt. V. pp 36 and 37.
2
Substituted for the words “or consumption of goods” by the Finance Act, 1960.
3
Substituted for the words “or consumption of goods” by the Finance Act, 1960.
4
Chapter I to X substituted for Chapters I to XVI by the Finance Act, 1990.
5
Brackets and word “(Amendment)” omitted by the Finance Act, 1991.
6
Came into force by Notification No. S.R.O. 1100(I)/90, dated 28-10-1990 w.e.f. 1st November, 1990.
7
Section 2 Substituted by the Finance Act, 1996.
8
Clauses (1) and (1A) substituted for clause (1) by Finance Act, 2015.

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 Sales Tax Act, 1990

(a) who is blacklisted or whose registration is suspended 9[***] in

terms of section 21;

(b) 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 10[quarterly] or an annual withholding tax
statement under section 165 of the Income Tax Ordinance,
2001;

(1A) “Appellate Tribunal” means the Appellate Tribunal Inland

Revenue established under section 130 of the Income Tax Ordinance, 2001
(XLIX of 2001);]

(2) “appropriate officer” means an 11[officer of Inland Revenue]

authorised by the Board by notification in the official Gazette to perform
certain functions under this Act;
12
[(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; ]

[(3) “associates or associated persons” shall have the same

13

meaning as defined in section 85 of the Income Tax Ordinance, 2001(XLIX

of 2001);]

9 The words “or is blocked” omitted by Finance Act, 2020.

10 The word substituted by Finance Act, 2020.
11
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was
made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6,
2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made
through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the
Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
12
Clause (2A) substituted by Finance Act, 2008. Earlier it was inserted by Tax Laws (Amendments) Ordinance,
1999. Originally it was inserted by Finance Act, 1991.
13
Clause (3) substituted by Finance Act, 2024.

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 Sales Tax Act, 1990

[(3A) “association of persons” includes a firm, a Hindu undivided

14

family, any artificial juridical person and anybody of persons formed under
a foreign law, but does not include a company;]
15
[(3AA) “banking 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;]

[(4) “Board” shall have the same meaning as defined under

16

clause (8) of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001);]

[(4A) “Chief Commissioner” means a person appointed as the

17

chief Commissioner Inland Revenue under section 30;]

18[(4AA) “Commissioner (Appeals)” means Commissioner of Inland
Revenue (Appeals) appointed under section 30;]

[(5) “Commissioner” means the Commissioner of Inland Revenue

19

appointed under section 30;]

[(5A) “common taxpayer identification number” means the

20

registration number or any other number allocated to a registered person;]

21
[(5AA) “company” means –

(a) a company as defined in the Companies Ordinance, 1984 (XL

VII of 1984);

14
Clause (3A) inserted by Finance Act, 2008.
15
Clause (3A) re-numbered as (3AA). Earlier it was inserted by Finance Act, 2004.
16
Clause (4) substituted by Finance Act, 2024. Earlier it was substituted by Finance Act, 2008.
17
Clause (4A) inserted by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance
(Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in
the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made
18
New clause 4AA inserted by Finance Act, 2021.
19
Clause (5) inserted by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance
(Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in
the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made Through Finance
(Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan
Extraordinary Part I at pages 229 to 259.
20
Clause (5A) inserted by Finance Act, 2006. Earlier clause (5A) was omitted by Finance Act, 2004. Earlier it
was inserted by Tax Laws (Amendments) Ordinance, 1999.
21
Clause (5AA) inserted by Finance Act, 2008.

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 Sales Tax Act, 1990

(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

(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 Tax Ordinance 2001
(XLIX of 2001);
22
[(5AAA)] “computerized system” means any comprehensive information
technology system to be used by the Board or any other office as may be
notified by the Board, for carrying out the purposes of this Act;]

[(5AB) “cottage industry” means a manufacturing concern, which

23

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
24
(d) annual turnover from all supplies does not exceed [eight]
million rupees;]

[(5AC) “CREST” means the computerized program for analyzing and

25

cross matching of sales tax returns, also referred to as COMPUTERISED

RISK-BASED EVALUATION of SALES TAX;]

22
Clause (5AA) re-numbered as (5AAA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006.
23
Clause (5AB) substituted by Finance Act, 2019.
24
Word “eight” substituted by Finance (Supplementary) Act, 2022.
25
CREST 5AC inserted by Finance Act, 2013.

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 Sales Tax Act, 1990

(6) “Customs Act” means the Customs Act, 1969 (IV of 1969), and
where appropriate all rules and notifications made under that Act;
26
[(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 partner or a proprietor and includes
guarantors or successors, who fail to pay the arrears;]

[(6B) “default surcharge” means the default surcharge levied under

27

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;

(9) “due date” in relation to the furnishing of a return 28[under

section 26], 29[ 30[...] 31[....] means the 32[15th] day of the month following
the end of the tax period, or such other date as the 33[Board] may, by
notification in the official Gazette, specify 34[and different dates may be
specified for furnishing of different parts or annexures of the return];

[(9A)] “e-intermediary” means a person appointed as e-intermediary

35

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;]
36
[(9AA) ***]

26
Clause (6A) inserted by Tax Laws (Amendments) Ordinance, 1999.
27
Clause (6B) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2005.
28
The words and figure inserted by Finance Act, 1998.
29
The words and figure inserted by Tax Laws Amendment Ordinance, 2000, dated 24 th May, 2000.
30
Comma and words etc. “, sub-section (6) of section 26A” omitted by Finance Act, 2004.
31
The expression “and section 26AA omitted by Finance, Act, 2016.
32
Substituted for “20th” by Finance Act, 1998
33
Substituted for “Federal Government” by Finance Act, 2008
34
Expression inserted through Finance Act, 2016.
35
Clause (9A) inserted by Finance Act, 2006. Earlier clause (9A) was omitted by Finance Act, 2004. Originally it was inserted by Tax Laws
(Amendments) Ordinance, 2001.
36
Clause (9AA) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001.

12
 Sales Tax Act, 1990

(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;

[(11A) “FBR Refund Settlement Company 38[10a] Limited” means the

37

company with this name as incorporated under the 39[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’;]

[ (11B) “firm” means the relation between persons who have agreed to
40 10

share the profits of a business carried on by all or any of them acting for
all;]

(12) “goods” include 41[***] every kind of movable property other

than actionable claims, money, stocks, shares and securities;

[“(12A) “green industry” in relation to the entry at serial number

42

150 of the Table-1 of the Sixth Schedule, means-

(a) a new industrial undertaking which is-

(i) setup on land which not previously been utilised 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;

37
Existing clause re-numbered as clause (11B) and new clause (11A) inserted by Finance Supplementary
(Second Amendment) Act, 2019
38
The word (Pvt) omitted by Finance Act, 2019.
39
Words substituted vide Finance Act, 2019
40
Clause (11A) inserted by Finance Act, 2008.
41
Expression omitted by Finance Act, 2023
42
New clause 12A inserted through Tax Laws (Amendment) Act, 2020 dated 30-3-2020.

13
 Sales Tax Act, 1990

(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 43

[ ... ] imports any goods
into Pakistan;
44
[(14) “input tax”, in relation to a registered person, means –

(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; 45[46 ]

43
Word “lawfully” omitted by Finance Act, 2008
44
Clause (14) substituted by Finance Act, 2008.
45
Word “and” added at the end of clause through Finance, Act, 2016.
46
Word “and” omitted through Tax Laws (Amendment) Ordinance, 2016.

14
 Sales Tax Act, 1990

(d) 47
[…….] 48[Provincial Sales Tax levied on services rendered or
provided to the person 49[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;]

[(14A) the expression “KIBOR” means Karachi Inter-Bank Offered

50

Rate prevalent on the first day of each quarter of the financial year;]
51
[(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;]

[“(15A) “licensed integrator” means any person licensed by the

52

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

47
Expression omitted through Finance, Act, 2016.
48
Expression re-inserted through Tax Laws (Amendment) Ordinance, 2016 having affect from 01 st day of July, 2016..
49
Expression inserted by Finance Act, 2024.
50
Clause (14A) inserted by Finance Act, 2009.
51
Clause (15) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance
(Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in
the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made through Finance
(Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of Pakistan
Extraordinary Part I at pages 229 to 259.
52
New clause inserted by Finance Act, 2024.

15
 Sales Tax Act, 1990

(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 –

(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 53[:]
54
[Provided that for the purpose of refund under this Act, only such
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;]

[(18) “Officer of Inland Revenue” means an officer appointed under

55

section 30;]

[(18A) “online market place” includes an electronic interface such

56

as a market place, e-commerce platform, portal or similar means which

53
Substituted for the semi-colon by Finance Ordinance, 2000
54
Proviso inserted by Finance Ordinance, 2000.
55
Clause (18) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this
amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.
56
New clause 18A inserted by Finance Act, 2021.

16
 Sales Tax Act, 1990

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.]

(19) “open market price” means the consideration in money which

that supply or a similar supply would generally fetch in an open market;
57
[(20) “output tax”, in relation to a registered person, means –

(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;
58
[(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);]
59
[(21) “person” means,–

(a) an individual;

(b) a company or association 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

57
Clause (20) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2007.
58 Clause (c) substituted by Finance Act, 2020.
59
Clause (21) substituted by Finance Act, 2008.

17
 Sales Tax Act, 1990

(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;

[(22A) “Provincial sales tax” means tax levied under, Provincial laws
60

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
61
[Commissioner];

(24) “registration number” means the number allocated to the

registered person for the purpose of this Act;

[(25) “registered person” means a person who is registered or is

62

liable to be registered under this Act:

Provided that a person liable to be registered but not registered under

this Act 63[...] shall not be entitled to any benefit available to a registered
person under any of the provisions of this Act or the rules made thereunder;]
64
[(26) ***]

(27) “retail price”, with reference to the Third Schedule, means the
price fixed by the manufacturer 65[or importer, in case of imported goods]
66
[...], inclusive of all 67[duties], charges and taxes (other than sales tax
68
[...]) at which any particular brand or variety of any article should be sold
60
Clause (22A) inserted by Finance Act, 2008.
61
The word “Collector” was substituted for “Commissioner” by Finance (Amendment) ordinance, 2010 promulgated as Ordinance No. III of 2010
dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance
(Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan
Extraordinary part I at pages 229 to 259.
62
Clause (25) substituted by Finance Ordinance, 2002.
63
Words “shall remain liable to further tax under sub-section (1A) of section 3 and” omitted by Finance Act, 2004.
64
Clause (26) omitted by Finance Ordinance, 2002.
65
The expression inserted vide Finance Act, 2019.
66
Words “or the importer” omitted by Finance Act, 2005. Earlier these were inserted by Finance Act, 2003.
67
Words and comma inserted by Finance Act, 2007.
68
Words “and octroi” omitted by Finance Act, 1998.

18
 Sales Tax Act, 1990

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 69[:].
70
[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.]

(28) “retailer” means a person 71[***] supplying goods to general

public for the purpose of consumption 72[:].
73
[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 74[***].]
75
[(28A) ***]

(29) “return” means any return required to be furnished under

Chapter-V of this Act;
76
[(29A) “sales tax” means – –
(a) the tax, additional tax, or default surcharge levied under this
Act;

(b) a fine, penalty or fee imposed or charged under this Act

77
[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 thereunder;]

69
The “semicolon” has been substituted by” colon” in Finance Act, 2014
70
Inserted by Finance Act 2014.
71
Words “not being a manufacturer or producer or an importer” omitted by Finance Act, 2003, after omission the commas become superfluous. Earlier
commas and words were inserted by Finance Act, 1998.
72
Substituted for the semi-colon by Finance Act, 2003.
73
Proviso inserted by Finance Act, 2003.
74
The comma, words and figures “, and his total turnover per annum shall be taken into account for the purposes of registration under section 14”
omitted by Finance Act, 2015.
75
Clause (28A) omitted by Finance Act, 2008. Earlier it was inserted by Finance Act, 1997.
76
Clause (29A) inserted by Finance Act, 2008.
77
Words inserted by Finance Act, 2022.

19
 Sales Tax Act, 1990

[(29AA) “sales tax account” means an account representing the double

78

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 substantially
79
[resembles] the characteristics, quantity, components and materials of the
aforementioned goods;
80
[(31A) “special audit” means an audit conducted under section 32A;]

(32) “Special Judge” means the Special Judge appointed under

Section 81[37C of the act until such appointment is made by the Special
Judge appointed under section] 185 of the Customs Act;

[(33) “supply” means a sale or other transfer of the right to dispose

82

of goods as owner, including such sale or transfer under a hire purchase

agreement, and also includes –

(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;

83
[***]
(c) possession of taxable goods held immediately before a person
ceases to be a registered person 84[; 85[***]]
86
[(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 87[; and]

78
Clause (29A) renumbered as (29AA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006.
79
Substituted for “resemble” by Finance Act, 2008.
80
Clause (31A) inserted by Finance Act, 1998.
81
Words etc. inserted by Finance Act, 2010 w.e.f. June 5, 2010.
82
Clause (33) substituted by Finance Act, 2008.
83
Word “and” omitted by Finance Act, 2015.
84
Semi-colon and word “and” substituted for colon by Finance Act, 2015. Semi-colon and word “and” substituted for colon by Finance Act, 2015.
85
Word “and” omitted by Finance Act, 2022.
86
Clause (d) added by Finance Act, 2015.
87
Semi colon and the word “and” substituted by Finance Act, 2022.

20
 Sales Tax Act, 1990

88
[***]

Provided that the 89[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;]

[(33A) “supply chain” means the series of transactions between

90

buyers and sellers from the stage of first purchase or import to the stage of
final supply;]
91
[(34)] tax”, unless the context requires otherwise, means sales tax;]

[(35) “taxable activity”, means any economic activity carried on

92

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

88 Sub-clause (e) omitted by Finance Act, 2023

89
The words “Federal Government” substituted with the expression vide Finance Act, 2019.
90
Clause (33A) inserted by Finance Act, 2013.
91
Clause (34) substituted by Finance Act, 2008.
92
Clause (35) substituted by Finance Act, 2008.

21
 Sales Tax Act, 1990

(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);

[(37) “tax fraud” means intentionally understating or underpaying

93

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

93
Clause (37) substituted by Finance Act, 2024.

22
 Sales Tax Act, 1990

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;
(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;]
94
[(38) ***]

(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 95[...]

96
[by an importer, manufacturer, wholesaler (including dealer), distributor
or retailer] other than a supply of goods which is exempt under section 13

94
Clause (38) omitted by Finance Act, 2004.
95
The words “In Pakistan” omitted by Finance Act, 2003.
96
The words and commas inserted by Finance Act, 1998.

23
 Sales Tax Act, 1990

and includes a supply of goods chargeable to tax at the rate of zero per cent
under section 4;
97
[(42) ***]

(43) “tax period” means a period of one month or such other period
as the 98[Board, with the approval of the Federal Minister-in-charge,] may
99
[, ] by notification in the official Gazette, specify;

[“(43A) 101[“Tier-1 retailer” means a retailer falling in any one or

100

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 102[twelve] hundred thousand; 103[ ]
(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”;] 104[ ]
105
[***]
106[(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; 107[***]

97
Clause (42) omitted by Finance Act, 1997.
98 98
The words “Federal Government” substituted with the expression vide Finance Act, 2019.
99
Substituted for semi-colon by Finance Act, 2008
100
Clause (43A) inserted through Finance Act, 2017
101
Expression substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 substituted expression read as under:
“Tier-1 retailers means”
102
Word “six” substituted by “twelve” though Tax Laws (Amendment) Act, 2020, dated 30-3-2020
103
The word “and” omitted vide Finance Act, 2019.
104
The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
105
Sub-clause (e) omitted by Finance Act, 2023
106
New clause (f) inserted by Finance Act, 2021.
107
Word “and” omitted by Finance (Supplementary) Act, 2022.

24
 Sales Tax Act, 1990

108
[(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; and
109
[***]
110
[(h) any other person or class of persons as prescribed by the
Board.]
111
[(44) “time of supply”, in relation to,–
(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 112[or the time when any
payment is received by the supplier in respect of that supply,
whichever is earlier] 113[****];
(b) a supply of goods under a hire purchase agreement, means the
time at which the agreement is entered into; and
(c) services, means the time at which the services are rendered or
provided;
114
[Provided that in respect of sub clause ( a) ,(b) or (c), where any
part payment is received, –
(i) for the supply in a tax period, it shall be accounted for in the
return for that tax period; and
(ii) 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 ;]

108
New clause (g) inserted by Finance (Supplementary) Act, 2022.
109
Sub-clause (ga) omitted by Finance Act, 2023
110
Existing clause (f) re-numbered as clause (h) by Finance Act, 2021.
111
Clause (44) (44 A) and (44 AA) substituted for clause (44) by Finance Act, 2008.
112
Expression added by Finance Act, 2024.
113
Words omitted by Finance Act, 2021.
114
Proviso added by Finance Act, 2013.

25
 Sales Tax Act, 1990

(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;]
115
[(45) ***]

(46) “value of supply” means:--

(a) in respect of a taxable supply, the consideration in money

including all Federal and Provincial duties 116[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 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; 117[ ... ]

(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; 118[and]
119
[(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.]
115
Clause (45) omitted by Finance Act, 2004.
116
Words inserted by Finance Act, 1999.
117
Words “and” omitted by Finance Ordinance, 2001.
118
Word inserted by Finance Ordinance, 2001.
119
Sub-clause (iii) inserted by Finance Ordinance, 2001.

26
 Sales Tax Act, 1990

(b) in case of trade discounts, 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 transaction it is difficult

to ascertain the value of a supply, the open market price;
(d) in case of imported goods 120[excluding those as specified in
the Third Schedule], the value determined under section 25
121
[...] of the Customs Act, including the amount of customs-
duties and 122[federal] excise duty levied thereon; 123[...]

(e) in case where there is sufficient reason 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 124[Inland Revenue] constituted
by the 125[Commissioner] 126[;] 127[ ]
128
[(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;]
129
[(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.]

120
The expression inserted vide Finance Act, 2019.
121
Words etc. “or 25B” omitted by Finance Act, 2004.
122
Word substituted by Finance Act, 2024.
123
The word “and” omitted by Finance Supplementary (Amendment) Act, 1997. Earlier the same amendment was made by Sales Tax (Second
Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979.
124
Substituted for “Sales Tax Department” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment)
ordinance 2010 promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages
23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October
28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259.
125
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) ordinance 2010
promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this
amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published
in the Gazette of Pakistan Extraordinary part I at pages 229 to 259.
126
Word etc. “; and” substituted for “colon” by Finance Supplementary (Amendment) Act, 1997. Earlier it was substituted by Sales Tax (Second
Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979.
127
The word “and” omitted vide Finance Act, 2019.
128
Sub clause (f) substituted by Finance Act, 2019. Earlier it was substituted by Sales Tax (Second Amendment) Ordinance, 1996, dated 2nd November,
1996; and again was made by the Sales Tax (Amendment) Ordinance, 1997.
129
Sub-Clause (g) inserted by Finance Act, 1997.

27
 Sales Tax Act, 1990

130
[(h) in case of supply of electricity by an independent power
producer 131[or WAPDA], 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; 132[***]

(i) in case of supply of electric power and gas by a distribution

company, the total amount billed including price of electricity
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; 133[:]

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 134[or
natural gas including re-gasified liquefied natural gas]
consumers and has never been chargeable to tax under the Act;]
136
[(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 vehicle on the basis of the
valuation method prescribed by the Board.]
135
[Provided] that, where the Board deems it necessary it may, by
notification in the official Gazette, fix the value of any imported goods 136[,
including those as specified in the Third Schedule,] or taxable supplies or

130
Clauses (h) and (i) added by Finance Act, 2019.
131
The words inserted by Finance Act, 2020, shall be deemed to have been inserted with effect from 1st July, 2019.
132
The word “and” omitted by Finance Act, 2020, the word “and” and “new clause j” inserted by Finance Act, 2020.
133
For expression “and” expression “:” substituted and thereafter Explanation inserted by Finance Act, 2022.
134
Expression inserted by Tax Laws (Second Amendment) Ordinance, 2022.
135
Provisos substituted by Finance Act, 2006.
136
Expression inserted by Finance Act, 2024.

28
 Sales Tax Act, 1990

class of supplies and for that purpose fix different values for different
classes or description of same type of imported goods or supplies:

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;]

[(46A) “whistleblower” means whistleblower as defined in section

137

72D of the Sales Tax Act, 1990;]

(47) “wholesaler” 138[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 139[a person supplying taxable
goods to 140[a person 141[who deducts income tax at source under the Income
Tax Ordinance, 2001 (XLIX of 2001)]] 142[...]; and

(48) “zero-rated supply” means a taxable supply which is charged to

tax at the rate of zero per cent under section 4.]

137
Clause (46A) added by Finance Act, 2015.
138
Words inserted by Finance Act, 1997.
139
The words, brackets and figures inserted by Finance Act, 1998.
140
Substituted for “person deducting advance tax under sub-section (4) of section 50 of the Income Tax, 1979 (XXXI of 1979)” by Finance Act, 2004.
141
Substituted for “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” by Finance Act, 2006.
142
Comma and words “, and a person who in addition to making retail supplies is engaged in wholesale business” omitted by Finance Act, 2008.

29
 Sales Tax Act, 1990

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
143
[eighteen] per cent of the value of–

(a) taxable supplies made 144[…] by a registered person in the

course or furtherance of any 145[taxable activity] carried on by
him; and

(b) goods imported into Pakistan, 146[irrespective of their final

destination in territories of Pakistan].
147
[(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 148[or he is not an active
taxpayer], there shall be charged, levied and paid a further tax at the rate of
149
[four] percent of the value In addition to the rate specified in sub sections
(1), (1B), (2), (5), 150[(6) and section 4] provided that the Federal Govt. 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.]
151
[(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 152[or] manufacturing
such goods; or

143
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
144
Words “ in Pakistan” omitted by Finance Act, 2003
145
Words substituted by Finance Act, 1996.
146
Words inserted through Finance Act, 2017
147
Sub section (1A) inserted by Finance Act, 2013.
148
Words inserted by Finance Act, 2022.
149
For the word “three” the word “four” substituted by Finance Act, 2023
150
The expression inserted through Finance Act, 2017
151
Clause (1B) substituted vide Finance Act, 2019.
152
Word substituted by Finance Act, 2021.

30
 Sales Tax Act, 1990

(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.]
153
[(2) Notwithstanding the provisions of sub-section (1): –

(a) taxable supplies 154[and import of goods] specified in the Third

Schedule shall be charged to tax at the rate of 155[eighteen] per
cent of the retail price 156[or in case such supplies 157[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 158[, or the importer,
in case of imported goods,] on each article, packet, container,
package, cover or label, as the case may be; 159[:]160[ ]
161[Provided
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: and
162
[Provided 163[further] that the 164[Board], may, by
notification in the official Gazette, exclude any taxable supply
165
[or import] from the said Schedule or include any taxable
supply 166[or import] therein; 167[…]

153
Sub section (2) substituted by Finance Act, 2001
154
The expression inserted through Finance Act, 2019.
155
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
156
The expression inserted through Finance Act, 2017
157
The words “or imports” inserted vide Finance Act, 2019.
158
The expression inserted through Finance Act, 2019.
159
Substituted for “; and” by Finance Act, 2007.
160
The word ‘; and” omitted by Finance Act, 2014.
161
New proviso inserted by Finance (Supplementary) Act, 2023.
162
Proviso inserted by Finance Act, 2007.
163
Word inserted by Finance (Supplementary) Act, 2023.
164
Word “Board” substituted by Finance (Supplementary) Act, 2022.
165
The words “or imports” inserted through Finance Act, 2019.
166
The words “or imports” inserted through Finance Act, 2019.
167
Word “and” omitted by Finance Bill, 2014.

31
 Sales Tax Act, 1990

168
(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]
169
[(b) the 170[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 goods171[…], of the person making the

supply, and

(b) in the case of goods imported into Pakistan, of the person

importing the goods.
172
[(3A) Notwithstanding anything contained in clause (a) of sub-
section (3), the 173[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.]
174
[(3B) Notwithstanding anything contained in sub section (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.]
175
[(4) ***]
168
Inserted by Finance Act, 2014
169
Clause (b) substituted by Finance Act, 2015.
170
Words “Federal Government” substituted by Finance Act, 2018.
171
Words “in Pakistan” omitted by Finance Act, 2003.
172
Sub-section 3A inserted by Finance Act, 1998.
173
The expression inserted through Finance Act, 2019.
174
Inserted by Finance Act 2014
175
Sub section (4) omitted by Finance Act, 2008.

32
 Sales Tax Act, 1990

176
[(5) The 177[Federal Government] may, in addition to the tax levied
under sub-section (1) 178[…], 179[…] sub-section (2) and sub-section (4),
levy and collect 180[“tax at such extra rate or amount”] not exceeding
181
[eighteen] 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.]
182
[(6) The Federal Government or 183[the 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.
184
[(7) The tax shall be withheld 11[***] at the rate as specified in the
Eleventh Schedule, by any person or class of persons 185[being purchaser of
goods or services 186[, 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 187[:]

[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.]

176
Sub section (5) inserted by Finance Act, 1999.
177
Words “Federal Government” substituted by Finance Act, 2018.
178
Word etc. “and (1 A)” omitted by finance Act, 2004.
179
Word etc. “clause (C) of” omitted by Finance Ordinance, 2002
180
Words substituted by Finance Act, 2013.
181
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
182
Sub section (6) inserted by Finance Ordinance 2001
183
Substituted for “Central Board of Revenue” by Finance Act, 2007
184
Sub-section (7) substituted by Finance Act, 2019.
185
The words omitted and the expression inserted by Finance Act, 2020.
186
Expression inserted by Finance Act, 2022.
187
Colon and proviso inserted by Finance Act, 2022.

33
 Sales Tax Act, 1990

188
[(8) Notwithstanding anything contained in any law or notification
made thereunder 189[, but subject to the provisions of clause (b) of sub-
section (2)] 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 190[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.

[(9) Notwithstanding anything contained in sub-section (1), tax shall

191

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-1 retailer or not a retailer.]
192
[(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:
193
[****]
Provided further 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.]

188
Sub-section 8 Inserted by Finance Act, 2014.
189
Comma and words inserted by Finance Act, 2015.
190
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
191
Sub-section 9 substituted by Tax Laws (Second Amendment) Ordinance, 2022 and shall be deemed to have
been so substituted from the 01st day of July, 2022.
192
Sub-section (9A) substituted through Finance Act, 2019.
193
First proviso omitted by Finance Act, 2021.

34
 Sales Tax Act, 1990

194
[(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.]
195
[(10) *** repealed]
196
[(11)***]
197
[(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.]

198
[3A. ***]
199
[3AA. ***]
200
[3AAA. ***]
201
[3B. Collection of excess sales 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

194
New sub-section inserted by Finance Act, 2021.
195
Section 10 repealed which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021.
196
Sub-section (11) omitted by Finance Act, 2024.
197
New sub-section (12) added by Tax Laws (Second Amendment) Ordinance, 2022.
198
Section (3A) omitted by Finance Act, 2004.
199
Section (3AA) omitted by Finance Act, 2008.
200
Section (3AAA) omitted by Finance Act, 2002.
201
Old section (3A) renumbered as (3B) by Finance Act, 1996.

35
 Sales Tax Act, 1990

incidence of which has been passed on to the consumer, shall pay the
amount of tax or charge so collected to the Federal Government.
202
[(2) Notwithstanding anything contained in any law or
judgement 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

203
[except those of sub-section (1A)], 204[...] the following goods shall be
charged to tax at the rate of zero per cent:--

[(a) goods exported, or the goods specified in the Fifth Schedule;]

(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);
205
[(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:”; and]
206
[(d) omitted.]

202
Sub-section (2) substituted by Finance Act, 2014.
203
The expression inserted through Finance Act, 2017
204
Words “a Supply of” omitted by Finance Act, 2004.
205
Clause (c) substituted through Finance Act, 2019.
206
Clause (d) omitted by Finance Act, 2019.

36
 Sales Tax Act, 1990

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
207
[***] 208[; or]
209
(iii) [have been exported to a country specified by the
Federal Government, by Notification in the official
Gazette 210[:]
211
[Provided further that the Federal Government 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.]

5. Change in the rate of tax.– If there is a change in the rate of tax-

(a) a taxable supply made 212[***] 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 a 9[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 213[goods declaration] for clearance of such
goods is presented under section 104 of the Customs Act,
1969 (IV of 1969);

207
Words omitted by Finance Act, 1999.
208
Substituted for “full stop” by Finance Act, 1991.
209
Added by Finance Act, 1991.
210
Substituted for “full stop” by Finance Act, 1996.
211
Proviso added by Finance Act, 1996.
212
Words “in Pakistan” omitted by Finance Act, 2003
213
Substituted for “bill of entry” by Finance Act, 2005

37
 Sales Tax Act, 1990

Provided that where a 9[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
of the [goods declaration] 215[under section 104 of the Customs Act,] the
214

tax shall be charged at the rate as is in force on the date on which tax is
actually paid.

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 216[and the provisions of the said Act 217[including
section 31A thereof], shall, so far as they relate to collection, payment and
enforcement 218[including recovery] of tax under this Act on such goods
where no specific provision exists in this Act, apply,].
219
[(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 estoppel or on account of any promise or

214
Substituted for “bill of entry” by Finance Act, 2005
215
Words, figure and comma inserted by the Finance Act, 1996.
216
The Words inserted in place of “IV of 1969” by Finance Act, 1996
217
The words inserted by Finance Act, 1998.
218
Words “including recovery” inserted by Finance Act, 2015.
219
Sub Section (1A) inserted by Sales Tax (amendment) Ordinance, 2002 dated June 07, 2002 and shall be
deemed to have always been so inserted.

38
 Sales Tax Act, 1990

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 220[***] during a

tax period shall be paid by the registered person 221[by the date as prescribed
in this respect] 222[:]
223
[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.]
224
[(3) The tax due on taxable supplies 225[***] 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.]
226
[4. ***]
227
[(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 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.]

220
Words “ in Pakistan” omitted by Finance Act, 2013
221
Words substituted through Finance, Act, 2016.
222
Substituted for full stop by Finance Act, 1997
223
Proviso inserted by Finance Act, 1997
224
Sub Section III substituted by Finance Act, 1996.
225
Words “made in Pakistan” omitted by Finance Act, 2003.
226
Sub Section 4 omitted by Finance Act, 1996.
227
New sub-section (5) added by Finance Act, 2022.

39
 Sales Tax Act, 1990

7. Determination of tax liability. – (1) 228[Subject to the

provisions of 229[section 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 230[, subject to the provisions of section 73,] be entitled to
deduct input tax 231[paid 232[or payable 233[during the tax period for the
purpose of taxable supplies made, or to be made, by him] from the output
tax 234[excluding the amount of further tax under sub-section (1A) of section
3.] 235[ ] that is due from him in respect of that tax period and to make such
other adjustments as are specified in Section 9 236[:]
237
[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 to deduct input tax

from output tax unless,-

(i) in case of a claim for input tax in respect of a taxable supply

made 238[***], he holds a tax invoice 239[in his name and
bearing his registration number] in respect of such supply 240[,
or in case of supply of electricity or gas, a bill bearing his
registration number and the address where the connection is
installed] 241[:]

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;

228
Substituted for the word “ for by Finance Act, 2007
229
The word” section” substituted by the words and figure “section 8 and” in Finance Act 2014.
230
Comma and word etc, inserted by Finance Ordinance, 2001
231
Words inserted by Finance Act, 1996
232
Words inserted by Finance Act, 2004.
233
Words inserted by Finance Act, 1998.
234
Inserted by Finance Act 2014
235
Words etc “ excluding the amount of tax” omitted by Finance Act, 2004
236
Substituted for the full stop by Finance Act, 2003
237
Proviso substituted by Finance Act, 2008.
238
Words “in Pakistan” omitted by Finance Act, 2003.
239
Words inserted by Finance Act, 2003.
240
The expression substituted through Finance Act, 2019.
241
A Colon substituted the semi colon & Proviso added through Finance, Act, 2016.

40
 Sales Tax Act, 1990

242
(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 79 243[, section 81] or section 104 of the Customs Act,
1969 (IV of 1969);]
244
(iii) [in case of goods purchased in auction, he holds a treasury
challan, 245[in his name and bearing his registration number,]
showing payment of sales tax;]
246
[(iv) ***]
247
[(3) Notwithstanding anything in sub-sections (1) and (2),
248
[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.]
249
[(4) Notwithstanding anything contained in this Act or rules made
there under, the 250[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.]
251
[(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.]

242
Clause (ii) substituted by Finance Act, 2003.
243
Expression “, section 81” inserted by Finance Act, 2015.
244
Clause (iii) inserted by Finance Ordinance, 2002
245
Comma and words inserted by Finance Act, 2004.
246
Clause (iv) omitted by Finance Act, 1997.
247
Sub Section (3) inserted by Finance Ordinance, 2002.
248
The expression substituted by Finance Act, 2019.
249
Sub Section (4) inserted by Finance Act, 2007.
250
Words “Federal Government” substituted by Finance Act, 2018.
251
New sub-section inserted by Finance Act, 2020.

41
 Sales Tax Act, 1990

252
[7A. Levy and collection of tax on specified goods on value
addition. – 253[(1) Notwithstanding anything contained in this Act or the
rules made there under, the 10[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 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.]
254
[(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.]

[8. Tax credit not allowed. – (1) Notwithstanding anything

255

contained in this Act, a registered person shall not be entitled to reclaim or

deduct input tax paid on –
256
[(a) the goods 257[or services] used or to be used for any purpose
other 258[***] for taxable supplies made or to be made by him;]

(b) any other goods or services which the 259[Federal Government]

may, by a notification in the official Gazette,
specify260[;261[***]]

252
Section (7A) inserted by Finance Act, 2003.
253
Renumbered by Finance Act, 2004
254
Sub-section (2) substituted vide Finance Act, 2019.
255
Section (8) substituted by Finance Act, 1996.
256
Clause (a) substituted by Sales Tax (amendment) Ordinance, 2001 dated February 07, 2001.
257
Words inserted by Finance Act, 2008.
258
Words “for the manufacture of production of manufacture goods or,” omitted by Finance Act, 2007.
259
Words “Federal Government” substituted by Finance Act, 2018.
260
Substituted for full stop by Finance Act, 1999
261
Word “and” omitted by Finance Act, 2004.

42
 Sales Tax Act, 1990

262 263
[(c)] [***] the goods under 264[sub-section] (5) of section 3 265[:]
266
[(ca) the goods 267[or services] in respect of which sales tax has not
been deposited in the Government treasury by the respective
supplier;]
268
[(caa)
purchases, in respect of which a discrepancy is indicated by
CREST or input tax of which is not verifiable in the supply
chain;]
269
[(d) fake invoices; 270[***]

(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 [;]
271
[(f) goods and services not related to the taxable supplies made by
the registered person.]
272
[(g) goods and services acquired for personal or non-business
consumption;]
273
[(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 274[pre-fabricated buildings and] such goods
acquired for sale or re-sale or for direct use in the production
or manufacture of taxable goods; 275[***]]
276
[(i) vehicles falling in Chapter 87 of the First Schedule to the
Customs Act, 1969 (IV of 1969), parts of such vehicles,

262
Clause (c) inserted by Finance Act, 1999.
263
Word “on” omitted by Finance Act, 2004.
264
Substituted for subsection (1A) and Finance Act, 2004.
265
Substituted for the full stop by Finance Act, 2004.
266
Clause (ca) inserted by Finance Act, 2006.
267
Words inserted by Finance Act, 2008.
268
Clause (caa) inserted by Finance Act, 2013
269
Clause (d) inserted by Finance Act, 2004.
270
The word “and “omitted by Finance Act 2014.
271
Inserted by Finance Act, 2014.
272
Inserted by Finance Act, 2014.
273
Inserted by Finance Act, 2014.
274
Words inserted by Finance Act, 2015.
275
Word “and” omitted by Finance Act, 2015.
276
Inserted by Finance Act, 2014.

43
 Sales Tax Act, 1990

electrical and gas appliances, furniture furnishings, office

equipment (excluding electronic cash registers), but excluding
such goods acquired for sale or re-sale] 277[;]
278
[(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;

(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 279[or he has not
paid amount of tax due as indicated in his return; and
280
[(m) the input goods 281[or services] attributable to supplies made to
un-registered 282[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.
283
[(4) ***]
284
[(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

277
Semi-colon substituted for full stop by Finance Act, 2015.
278
Clauses (j), (k) and (l) added by the Finance Act, 2015.
279
Expression added through Finance Act, 2016.
280
Clause (m) substituted through Finance Act, 2019.
281
The words inserted by Finance Act, 2020.
282
Word “person” substituted by Finance Act, 2022.
283
Sub-Section (4) omitted by Finance Act, 1999.
284
Sub-section (5) inserted by Finance Act, 1999.

44
 Sales Tax Act, 1990

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.]
285
[(6) Notwithstanding anything contained in any other law for the
time being in force or any provision of this Act, 286[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 person
cannot supply to any person who is not registered 287[***] under this Act.]
288
[(7) ***]
289
[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 290[, of which the burden to prove shall be 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 291[:]]
292
[Provided that the Board may by notification in the official
gazette, exempt any transaction or transactions from the provisions of this
section.]
293
[8B. Adjustable input tax.– (1) Notwithstanding anything
contained in this Act, in relation to a tax period, a registered person 294[***]
shall not be allowed to adjust input tax in excess of ninety per cent of the
output tax for that tax period:

285
Sub-section (6) inserted by Sales Tax (Amendment) Ordinance, 2001 dated February 7, 2001.
286
The expression substituted by Finance Act, 2019.
287
Words “or enrolled” omitted by Finance Act, 2004.
288
Sub-section (7) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001.
289
Section 8A inserted by Finance Act, 2006.
290
Expression added by Finance Act, 2015.
291
Substituted for full stop by Finance Act, 2007.
292
Proviso inserted by Finance Act, 2007.
293
Section 8B inserted by Finance Act, 2007.
294
Words omitted by Finance Act, 2022.

45
 Sales Tax Act, 1990

295
[Provided that the restriction on the adjustment of input tax in
excess of ninety percent 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 sub-section (1), may be allowed

adjustment 296[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-

sections (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.
297
[(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.]

295
Proviso substituted by Finance Act, 2011.
296
Words inserted by Finance Act, 2009.
297
New sub-section (4A) inserted by Finance Act, 2020.

46
 Sales Tax Act, 1990

(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).]
298
[(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 299[60%.]

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.
300
[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 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:
301
[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.]

298
New sub-section (6) inserted through Finance Act, 2019.
299
Expression substituted by Finance Act, 2021.
300
Section 10 substituted by Finance Act, 2007. Earlier it was also substituted by Finance Act, 1998 and Finance Act, 1996
301
Proviso substituted by Finance Act, 2008.

47
 Sales Tax Act, 1990

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
302
[at the fixed rates and in the manner as] notified in the 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 303[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.]
304
[11. ***]

305
[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 thereunder:

Provided that no penalty under section 33 of this Act shall be

imposed unless a show cause notice is given to such person.]

302
The expression substituted through Finance Act, 2019.
303
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment)
Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages
23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in
the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
304
Section 11 omitted by Finance Act, 2024.
305
Section 11A Substituted by Finance Act, 2006. Earlier it was inserted by Finance Ordinance, 2002.

48
 Sales Tax Act, 1990

306
[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;]

307
[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.]
308
[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

306
Section 11B substituted by Finance Act, 2024.
307
New section 11C inserted by Finance Act, 2020.
308
New sections 11D to 11G inserted by Finance Act, 2024.

49
 Sales Tax Act, 1990

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 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.

11E. Assessment of tax and recovery of tax not levied or short

levied or erroneously refunded.- (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,

50
 Sales Tax Act, 1990

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.

(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.

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 twenty 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.

51
 Sales Tax Act, 1990

(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.]
309
[12. ***]
310
[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 311[Federal
Government], be exempt from tax under this Act 312[.]
313
[***]

(2) Notwithstanding the provisions of sub-section (1) –

314
[(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 any supplies 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;]
315
[(b) ***]

309
Section 12 omitted by Finance Act, 1996.
310
Section 13 substituted by Finance Act, 1996.
311
Substituted for “Board” by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999.
312
Substituted for colon by Tax Laws Amendment Ordinance, 2000, full Stop was substituted for colon by sales tax “(Amendment)
Ordinance, 1999, dated 13th August, 1999.
313
Provisos omitted by Tax Laws Amendment Ordinance, 2000, dated 24th May, 2000. Earlier it was omitted by sales Tax
(Amendment) Act, 1999 dated 30-03-1999.
314
Clause (a) substituted through Finance Act, 2019.
315
Clause (b) omitted by Finance Act, 2015.

52
 Sales Tax Act, 1990

(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) 316[***].]
317
[(4) ***]
318
[(5) ***]
319
[(6) The 320[Board] 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 1st July,
2015 shall, if not earlier rescinded, stand rescinded on the expiry of the
financial year in which it was issued 321[:

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.]

316
Expression “or, as the case may be, order made under clause (b) of that sub-section” omitted by Finance Act, 2015.
317
Sub-section (4) omitted by Finance Act, 2006.
318
Sub-section (5) omitted by Sales Tax (Amendment) Ordinance, 2000.
319
Sub-section (6) and sub-section (7) added by Finance Act, 2015.
320
Substituted for the words “Federal Government” through Finance Act, 2017
321
For the full stop a colon inserted and thereafter new provisos added through Finance Act, 2017

53
 Sales Tax Act, 1990

Chapter-III
REGISTRATION
322
[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, falling in any of the
following categories, if not already registered, is required to be registered
under this Act, namely:-

(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 thereunder, 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.

(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.

(3) The registration under this Act shall be regulated in such

manner as the Board may, by notification in the official Gazette, prescribe.]

323
[14A. *** repealed]

322
Section 14 substituted by Finance Act, 2015.
323
Section 14A repealed, which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021.

54
 Sales Tax Act, 1990

324
[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.]
325
[15. ***]
326
[16. ***]
327
[17. ***

18. ***

19. ***

20. ***]
328
[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.

324
New section 14AB added by Finance Act, 2022.
325
Section 15 omitted by the Finance Act, 2014.
326
Section 16 omitted by Finance Act, 2003.
327
Sections 17 to 20 omitted by Finance Act, 2004.
328
Section 21 substituted by Finance Act, 2004.

55
 Sales Tax Act, 1990

(2) Notwithstanding anything contained in this Act, in cases where

the 329[Commissioner] is satisfied that a registered person is found to have
issued fake invoices 330[...] or has 331[otherwise] committed tax fraud, he
may 332[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.]
333
[(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 black listed, the refund
or input tax credit claimed against the invoices issued by him, whether prior
or after such black listing, shall 334[...] be rejected through a self-speaking
appealable order and after affording an opportunity of being heard to such
person.]
335
[(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.]
336
[(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:

329
Substituted “for collector” by Finance Act, 2010
330
Comma and words “, evaded tax” omitted by Finance Act, 2005.
331
Word inserted by Finance Act, 2005.
332
Words substituted by Finance Act, 2024.
333
Sub Section (3) inserted by Finance Act, 2011
334
Words and figure omitted by Finance Act, 2013.
335
Sub section (4) inserted by Finance Act, 2013.
336
New sub-section added by Finance Act, 2024.

56
 Sales Tax Act, 1990

Provided that no order under this sub-section shall be passed unless

an opportunity of being heard has been provided to the registered person.]
337
[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
338
[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 339[,
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 –

(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;
340
[(c) records of goods imported shall show the description, quantity
and value of goods and the amount of tax paid on imports;]
341
[(d)] records of zero-rated and exempt supplies;
342
[(da) double entry sales tax accounts;]

337
Section 21A inserted by Finance Act, 2015.
338
Section 22 substituted by Finance Act, 1996.
339
The comma and words inserted by Finance Act, 2005.
340
Clause (c) inserted by Finance Act, 2005.
341
Existing clause (c) re-lettered as clause (d) by Finance Act, 2005.
342
Clause (da) inserted by Finance Act, 2006.

57
 Sales Tax Act, 1990

343
[(e)] invoices, credit notes, debit notes, bank statements, 344[banking
instruments in terms of section 73,] inventory records,
345
[utility bills, salary and labour bills, 346[cash book,] rental
agreements, sale purchase agreements and lease agreements];
347
[...]
348
[(ea) Record relating to Gate passes, inward or outward and transport
receipts.]
349[(eb) Electronic version of records mentioned in clauses (a) to (ea)
of this sub-section.]
350
[(f)] such other records as may be specified by the Board:
351
[Provided that the persons paying 352[...] retail tax shall keep such
record as may be specified by the Board.]
353
[(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.
354
[(2A) The Board may, by notification in the Official Gazette, specify
for any class of taxable persons registered under this Act to use such

343
Existing clause (d) re-lettered as clause (e) by Finance Act, 2005.
344
The words, comma and figure inserted by Finance Act, 2004.
345
The commas and words inserted by Finance Act, 1999.
346
Expression inserted by Finance Act, 2021.
347
The word “and” omitted by Finance Act, 2013.
348
Clause (ea) inserted by Finance Act, 2013.
349
New clause (eb) inserted by Finance Act, 2021.
350
Existing clause (e) re-lettered as clause (f) by Finance Act, 2005
351
Proviso substituted by the Finance Act, 1997.
352
The words “turnover tax or” omitted by Finance Act, 2005.
353
Sub-section (1A) inserted by Finance Act, 2007.
354
Sub-section (2A) inserted by Finance Act, 1999.

58
 Sales Tax Act, 1990

electronic fiscal cash registers as are approved by the Board in the manner
as may be prescribed.]
355
[(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 filing of returns or
refunds by a person or class of such persons.]]
356
[(4) The registered persons, whose accounts are subject to audit under
the Companies Ordinance, 1984 (XLVII 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 particulars357[, in Urdu or English language,]
namely: –

(a) name, address and registration number of the supplier;

[358(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 the goods for his own
consumption and not for the purpose of re-sale or processing:

Provided that the condition of NIC or NTN shall be effective

from 1st August, 2019 359[:]

355
Sub Section (3) substituted by Finance Act, 2003.
356
Sub Section (4) inserted by Finance Act, 2007.
357
The expression added through Finance Act, 2019.
358
Clause (b) substituted by Finance Act, 2022.
359
Colon substituted by Finance (Supplementary) Act, 2022.

59
 Sales Tax Act, 1990

360[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 invoice;

(d) description 361[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

362
[(ff) ***]

(g) value inclusive of tax:

Provided that the Board may, by notification in the official Gazette,

specify such modified invoices 363[...] for different persons or classes of
persons;

Provided further that not more than one tax invoice shall be issued
for a taxable supply364[.]
365
[***]
366
[(2) No person other than a registered person or a person paying
367
[*** 368[***]]369[retail tax] shall issue an invoice under this section.

360
Proviso inserted by Finance (Supplementary) Act, 2022.
361
The expression added through Finance Act, 2019.
362
Clause (ff) omitted by Finance Act, 2004.
363
Comma and words “, including replacement invoice,” omitted by Finance Act, 1997.
364
Full stop substituted by Finance (Supplementary) Act, 2022.
365
Proviso omitted by Finance (Supplementary) Act, 2022.
366
Sub Section (2) inserted by Finance Act, 1996.
367
Words “turnover tax or” omitted by Finance Act, 2004.
368
Words “or retailer tax” added by Finance Act, 1997.
369
Words inserted by Finance Act, 1997.

60
 Sales Tax Act, 1990

370
[(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.]
371
[(4) The Board may, by notification in the Official Gazette,
prescribe the manner and procedure for regulating the issuance and
authentication of tax invoices.]
372
[24. Retention of record and documents for 373[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 352[Six] years after the
end of the tax period to which such record or documents relate 374[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].]
375
[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 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

370
Sub section (3) substituted by Finance Act, 2024.
371
Sub Section (4) inserted by Finance Act, 2007.
372
Section (24) substituted by Finance Act, 1996.
373
Substituted for “Five” by Finance Act, 2010.
374
Words and Commas inserted by Finance Act, 2010.
375
Section 25 substituted by Finance Act, 2024.

61
 Sales Tax Act, 1990

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.

62
 Sales Tax Act, 1990

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 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

63
 Sales Tax Act, 1990

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.]
376
[25A. Drawing of samples.– Where an authorized officer of
377
[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 a 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 378[Large Taxpayers Unit or
Regional Tax Office, as the case may be].]
379
[25AA. Transactions between Associates.– 6[(1)] The Commissioner
or an office of Inland Revenue may, in respect of any transaction between
persons who are associates, determine the transfer price of taxable supplies

376
Section 25A inserted by Finance Act, 1999.
377
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010,
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
378
Substituted for “Collectorate” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010,
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
379
Section (25AA) by Finance Act, 2010 w.e.f. june5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated
as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment
was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published in the
Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

64
 Sales Tax Act, 1990

between the persons as is necessary to reflect the fair market value of

supplies in an arm’s length transaction.]
380
[(2) The Board may, by notification in official gazette, prescribe
rules for carrying out the purpose of sub-section (1).]

Chapter-V
RETURNS

381
[26. 382[***] Return.– (1) Every registered person 383[...] shall
furnish not later than the due date a true 384[, complete] and correct return
in the prescribed form to a designated bank 385[or any other office] 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 386[;]
387
[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.]

380
Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021.
381
Section 26 substituted by Finance Act, 1996
382
Word “monthly” omitted by Finance Act, 2006.
383
Words “making taxable supplies” omitted by Finance Act, 1999.
384
Comma and word inserted by Finance Act, 2020.
385
Words inserted by Finance Act, 2006.
386
In the proposed amendment “a full stop is substituted for a colon” while colon is already appearing.
387
Proviso inserted by Finance Act, 2006.

65
 Sales Tax Act, 1990

388
[...]
389
(2) [....] omitted
390
[(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.]
391
[(3) A registered person may, subject to approval of the
392
[Commissioner Inland Revenue] having jurisdiction, file a revised return
within 393[one hundred and twenty] days of the filing of return under sub-
section (1) or, as the case may be, sub-section (2), 394[ or under clause (a) or
clause (b) of section 27], to correct any omission or wrong declaration made
therein395[:]
396
[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.]
397
[(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

388
Proviso omitted by Finance Act, 2006
389
Sub-section (2) omitted through Finance Act, 2016.
390
New sub-section inserted by Finance Act, 2024.
391
Sub section (3) substituted by Finance Act, 2006.
392
Substituted for collector of Sales tax by Finance Act, 2010
393
Substituted for “ninety” by Finance Act, 2008.
394
Words inserted by Finance Act, 2011.
395
Substituted for the full stop through Finance Act, 2019.
396
New proviso added through Finance Act, 2019.
397
Subsection (4) inserted by Finance Act, 2003.

66
 Sales Tax Act, 1990

398
[default surcharge], whenever it comes to his notice, before receipt of
notice of audit, no penalty shall be recovered from him:

Provided that in case the registered person wishes to deposit the

amount of tax as pointed out by the officer of 399[Inland Revenue] during
the audit, or at any time before issuance of the show cause notice 400[...], he
may deposit the evaded amount of tax, [default surcharge] under section
(34), and twenty five percent of the penalty payable under section 33 along
with the levied 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 401[...],402[default surcharge] under section 34, and full
amount of leviable penalty under section 33 along with the revised return
and thereafter, the show cause notice, shall stands abated.]
403
[(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.]
404
[26A. ***]
405
[26AA. ***]
406[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.

398
Substituted for “Additional Tax” by Finance Act, 2005.
399
Substituted for “Sales tax” by Finance Act, 2010.
400
Words “in lieu of the audit report” omitted by Finance Act, 2010.
401
Words “etc alongwith the amount of further tax as per provision of sub section (1A) of section 3, if applicable omitted by Finance Act, 2004.
402
Substituted for words “additional tax” by Finance Act, 2005.
403
Sub section (5) inserted by Finance Act, 2004.
404
Section 26 A omitted by Finance Act, 2004.
405
Section 26AA omitted by Finance Act, 2008.
406
New section 26AB inserted by Finance Act, 2021.

67
 Sales Tax Act, 1990

(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.]

407
[27. Special Returns.– In addition to the return specified under
section 26 –

(a) a person registered 408[ 409[ ] under this Act] shall furnish
special return within such date and in such form indicating information such
as quantity manufactured or produced, purchases made, goods supplied or

407
Section 27 substituted by the Finance Ordinance, 2000.
408
Substituted for words and figure “under section 14” by sales tax (Amendments) Ordinance, 2000, dated September 05, 2000.
409
Words “or enrolled” omitted by Finance Act, 2004.

68
 Sales Tax Act, 1990

payment of arrears made, etc, for such period as the Board may, by a
notification in official gazette, specify; and

(b) the 410[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.]
411
[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 412[commissioner] in the specified form in such manner and at such time
as directed by the 413[commissioner]].

29. Return deemed to have been made.– A return purporting to

be made on behalf of a person 414[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 415[OFFICERS OF SALES TAX] &

THEIR POWERS
416
[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 –

(a) a chief commissioner of Inland Revenue;

(b) a commissioner of Inland Revenue ;

(c) a commissioner of Inland Revenue (Appeals);

410
Substituted for “Collector” by Finance Act, 2010
411
Section 28 substituted by Finance Act, 1996.
412
Substituted for “Collector” by Finance Act, 2010
413
Substituted for “Collector” by Finance Act, 2010
414
Words inserted by Finance Act, 1996.
415
Any reference to the “Sales Tax Officer” shall be construe as reference to an “Officer of “Inland Revenue” by virtue of section 72 of the Sales Tax
Act, 1990.
416
Section 30 substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No. III of 2010, Published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at Pages 229 to 259. Earlier it was substituted by Finance Act, 1996.

69
 Sales Tax Act, 1990

(d) an Additional commissioner of Inland Revenue ;

(e) a Deputy commissioner of Inland Revenue;

417
[(ea) District Taxation Officer Inland Revenue;]

(f) an Assistant commissioner of Inland Revenue;

418
[(fa) Assistant Director Audit Inland Revenue;]

(g) an Inland Revenue Officer;

(h) a Superintendent Inland Revenue;

(i) an Inland Revenue Auditor Officer 419[...];

420
[(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 sub-ordinate to the Board
and Commissioner Inland Revenue shall be sub-ordinate to the
Chief Commissioner Inland Revenue.
421
[(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.
5
(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.]

417
Clause (ea) inserted through Finance Act, 2017
418
Clause (fa) inserted through Finance Act, 2017
419
Word “and” omitted by Finance Act, 2011.
420
Clause “(ia)” inserted by Finance Act, 2011
421
Sub-sections (2A) & (2B) inserted through Finance Act, 2017

70
 Sales Tax Act, 1990

(3) Additional Commissioner Inland Revenue, Deputy

Commissioners Inland Revenue 422[, District Taxation Officer Inland
Revenue], Assistant Commissioner Inland Revenue 6[, Assistant Director
Audit Inland Revenue], Superintendent Inland Revenue, Inland Revenue
Audit Officer, Inland Revenue Officer 423[, Inspector Inland Revenue], and
officer of Inland Revenue with any other designation shall be sub-ordinate
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 sub ordinate, may direct.

(4) Deputy Commissioner Inland Revenue 424[, District Taxation

Officer Inland Revenue], Assistant Commissioner Inland Revenue 1[,
Assistant Director Audit Inland Revenue], Superintendent Inland Revenue,
Inland Revenue Audit Officer, Inland revenue Officer, 425[Inspector Inland
Revenue Officer] an officer of Inland Revenue with any other designation
shall be sub-ordinate to the Additional Commissioner Inland Revenue.]
426
[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, 427[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.]

422
Expressions inserted through Finance Act, 2017
423
Comma and words inserted by Finance Act, 2011.
424
Expression inserted through Finance Act, 2017
425
Comma and words inserted by Finance Act, 2011.
426
Section 30A substituted by Finance Act, 2018.
427
Substituted for the word “post” through Finance Act, 2019.

71
 Sales Tax Act, 1990

428[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, --

(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

428
New section inserted by Finance Act, 2024.

72
 Sales Tax Act, 1990

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.]
429[30B.
Directorate General 430[...] Internal Audit.– The Directorate
2
General [...] 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.
431[30C. Revenue Services Academy].--The 433[Inland
432[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.

434
[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.]
435[30D.
Directorate General of Valuation 436[...].--The Directorate
General of Valuation 5[...] 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.

429
Section 30B inserted by Finance Act, 2005.
430
Words “of inspection and” omitted by Finance Act, 2007.
431
Section 30C inserted by Finance Act, 2005.
432
Marginal heading substituted by Finance Act, 2022.
433
Words substituted by Finance Act, 2022.
434
Section 30CA substituted by Finance Act, 2023
435
Section 30D inserted by Finance Act, 2005.
436
Words “and Post Clearance Audit” omitted by Finance Act, 2007.

73
 Sales Tax Act, 1990

437
[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.]
438[30DDD. Directorate General of Input Output Co-efficient
Organization.- The Directorate General of Input Output Coefficient
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.]
439[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.]
440
[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 441[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.

437
Section 30DD inserted by Finance Act, 2007.
438
New section 30DDD added through Finance Act, 2016.
439
New section 30DDDA added through Tax Laws (Amendment) Act, 2024.
440
Section 30E inserted by Finance Act, 2005.
441
Substituted for “sales tax” by Finance Act, 2010 w.e.f June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No.III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this
amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published
in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259

74
 Sales Tax Act, 1990

442
[32. Delegation of powers.– 443[(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 –

[(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; and

(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.]
444
[(2) ***]

(3) The officer to whom any powers are delegated under this
section shall not further delegate such powers.]
445
[32A. 446[Audit by Special Audit Panels]. 447[(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);
442
Section 32 substituted by Finance Act, 1996.
443
Sub Section (1) substituted by Finance Act, 2010 w.e.f. June 5, 2010. Earlier clause (a) to (d) substituted by Finance (2) omitted by the Finance Act,
2010
444
Sub Section (2) omitted by the Finance Act, 2010.
445
Section 32A inserted by Finance Act, 1998.
446
Substituted for the words “Special Audit by Chartered Accountants or Cost Accountants” by Finance Act, 2015
447
Substituted for sub-section (1) by Finance Act, 2015

75
 Sales Tax Act, 1990

(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 basis. In
addition, the Board may, where it considers appropriate, also get such audit
conducted jointly with similar audits being conducted by provincial
administrations of sales tax on services.]

(2) Notwithstanding that records of a registered person have been

audited by an officer appointed under section 30, the Board or a
448
[Commissioner] may direct 449[special audit panel] appointed under sub-
section (1) to audit the records of any registered person.

(3) 450[Every member of special audit panel] appointed under sub-

section (1), shall have the powers of an officer of 451[Inland Revenue] under
sections 25, 37 and 38.
452
[(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.

448
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this
amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published
in the Gazette of Pakistan Extraordinary part I at pages 229 to 259.
449
Substituted for the words “an auditor” by Finance Act, 2015
450
Substituted for the words “An Auditor” by Finance Act, 2015
451
Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010.The same was made by Finance (Amendment) Ordinance, 2010, promulgated
as ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment
was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the
Gazette of Pakistan Extraordinary Part-I at Pages 229 to 259.
452
Sub-sections (4), (5) and (6) inserted by Finance Act, 2015.

76
 Sales Tax Act, 1990

(6) The Board may prescribe rules in respect of constitution,

procedure and working of special audit panel.]
453
[32AA. ***]

453
Section 32 AA omitted by Finance Act, 2008, earlier it was inserted by Tax Laws Amendment Ordinance, 2000, dated may
24, 2000.

77
 Sales Tax Act, 1990

Chapter-VII
OFFENCES AND PENALTIES

454
[33. Offences and penalties.– 455[...] Whoever commits any
offence described in column (1) of the Table below shall, in addition to and
not in derogation of any punishment to which he 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 Such person shall pay a penalty of 26
456
fails to furnish a return [ten] thousand rupees:
within the due date.
Provided that in case a person files
a return within 457[ten] days of the
due date, he shall pay a penalty of
458
[two] hundred rupees for each
day of default.
2. Any person who fails to Such person shall pay a penalty of 23
issue an invoice when five thousand rupees or three per
required under this Act. cent of the amount of the tax
involved, whichever is higher.
3. Any person who un- Such person shall pay a penalty of 3, 7 and 23
authorizedly issues an ten thousand rupees or five per cent
invoice in which an of the amount of t
amount of tax is he tax involved, whichever is
specified. higher.

4. Any person who fails to Such person shall pay a penalty of 14

notify the changes of five thousand rupees.
material nature in the
particulars of
registration of taxable
activity.

454
Section 33 substituted by Finance Act, 2005.
455
Bracket and figure “one” omitted by Finance Act, 2008.
456
Substituted for the word “five” by Finance Act, 2019..
457
Substituted for the word “fifteen” by Finance Act, 2015.
458
Substituted for the word “one” by Finance Act, 2019.

78
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
5. Any person who fails to Such person shall pay a penalty of 3, 6, 7 and 48
deposit the amount of ten thousand rupees or five per cent
tax due or any part of the amount of the tax involved,
thereof in the time or whichever is higher:
manner laid down
under this Act or rules Provided that, if the amount of tax
or orders made there or any part thereof is paid within
459
under. [ten] days from the due date, the
defaulter shall pay a penalty of five
hundred rupees for each day of
default:

Provided further that no penalty

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
460
[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 Such person shall pay a penalty of 7 and 26
erroneous calculation in five thousand rupees or three per
the return during a year cent of the amount of the tax
whereby amount of tax involved, whichever is higher.
less than the actual tax
due is paid.
7. Any person who is Such person shall pay a penalty of 14
required to apply for ten thousand rupees or five per cent

459
Substituted for the word “fifteen” by Finance Act, 2015.
460
Substituted for “Sales tax”, not below the rank of Assistant Collector of sales tax” by Finance Act, 2010

79
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
registration under this of the amount of tax involved,
Act fails to make an whichever is higher:
application for
registration before Provided that such person who is
making taxable required to get himself registered
supplies. 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 Such person shall pay a penalty of 22 and 24
maintain records ten thousand rupees or five per cent
required under this Act of the amount of tax involved,
or the rules made there whichever is higher.
under.
9. Where a registered such person shall pay a penalty of 25
person who, without any five thousand rupees;
reasonable cause, in non
compliance with the such person shall pay a penalty of
provisions of section 25, ten thousand rupees; and
––
such person shall pay a penalty of
(a) fails to produce the fifty thousand rupees.
record on receipt of
first notice;

(b) fails to produce the

record on receipt of
second notice; and

(c) fails to produce the

record on receipt of
third notice.

10. Any person who fails to Such person shall pay a penalty of 26
furnish the information ten thousand rupees.

80
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
required by the Board
through a notification
issued under sub-
section (5) of section
26.
11. Any person who, – 463
[Such person shall pay a penalty 2(37) and General
of twenty-five thousand rupees or
(a) submits a false or one hundred per cent of the amount
forged document to of tax evaded or sought to be
461
any [officer of evaded, whichever is higher.
462
[Inland revenue]; or Without prejudice to the above, he
(b) destroys, alters, shall also be liable, upon
mutilates or falsifies conviction by a Special Judge to
the records including a imprisonment for a term which
sales tax invoice; or may extend to five years if the tax
evaded or sought to be evaded is
(c) Knowingly or
less than one billion, and which
fraudulently makes
may extend to ten years if the tax
false statement, false
evaded or sought to be evaded is
declaration, false
one billion and above and fine
representation, false
which may extend to an amount
personification, gives
equal to the amount of tax evaded
any false information
or sought to be evaded, or with
or issues or uses a
both.]
document which is
forged or false.
12. Any person who denies Such person shall pay a penalty of 25, 38 , 467[38A
or obstructs the access twenty five thousand rupees or one and 40B]
of an authorized officer hundred per cent of the amount of
to the business tax involved, whichever is higher.
465
premises, registered [Without prejudice to above, he
office or to any other shall also be liable,] upon
place where records are conviction by a Special Judge, to
kept, or otherwise imprisonment for a term which
refuses access to the may extend to five years, or with
stocks, accounts or

461
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.
462
Substituted for the words “Sales Tax” by the Finance Act, 2010
463
Column (2) of serial number 11 substituted by Finance Act, 2024.
465
Words substituted by Finance Act, 2024.
467
Substituted for “or 38A” by Finance Act, 2009

81
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
records or fails to fine 466[which may extend to an
present the same when amount equal to the amount of tax
required under section evaded or sought to be evaded], or
25, 38 464[38A or 40B]. with both.
468
13. Any person who [(a) The person who commits, 2(37)
commits, causes to causes to commit or attempts to
commit or attempts to commit the tax fraud shall pay a
commit the tax fraud, penalty of twenty-five thousand
or abets or connives in rupees or one hundred percent of
commissioning of tax the amount of tax evaded or sought
fraud. to be evaded, whichever is higher.
Without prejudice to the above, he
shall also be liable, upon
conviction by a Special Judge to
imprisonment for a term which
may extend to five years if the tax
evaded or sought to be evaded is
less than one billion rupees, and
which may extend to ten years if
the tax evaded or sought to be
evaded is one billion rupees and
above, and fine which may extend
to an amount equal to the amount
of tax evaded or sought to be
evaded, or with both; and
(b) The person who abets or
connives in commissioning of tax
fraud shall be liable, upon
conviction by a Special Judge to
imprisonment for a term which
may extend to five years if the tax
evaded or sought to be evaded is
less than one billion rupees, and
which may extend to ten years if
the tax evaded or sought to be
evaded is one billion rupees and
above, and with fine which may
extend to an amount equal to the

464
Substituted for “or 38A” by Finance Act, 2009
466
Words substituted by Finance Act, 2024.
468
Column (2) of serial number 13 substituted by Finance Act, 2024.

82
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
amount of tax evaded or sought to
be evaded or with both.]
14. Where any person Such person shall pay a penalty of 48
violates any embargo twenty five thousand rupees or ten
placed on removal of per cent of the amount of the tax
goods in connection involved, whichever is higher.
469
with recovery of tax. [Without prejudice to above, he
shall also be liable], upon
conviction by a Special Judge, to
imprisonment for a term which
may extend to one year, or with
fine 470[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 Such person shall pay a penalty of 31 and General
obstructs the twenty five thousand rupees or one
authorized officer in hundred per cent of the amount of
the performance of his tax involved, whichever is higher.
official duties.
16. Any person who fails Such person shall pay a penalty of 73
to make payment in the five thousand rupees or three per
manner prescribed cent of the amount of tax involved,
under section 73 of this whichever is higher.
Act.
17. Any person who fails Such person shall pay a penalty of 71 and General
to fulfil any of the five thousand rupees or three per
conditions, limitations cent of the amount of tax involved,
or restrictions whichever is higher.
prescribed in a
Notification issued
under any of the
provisions of this Act.
18. Where any officer of Such officer of 472[Inland Revenue] General
471
[Inland Revenue] shall be liable, upon conviction by
authorized to act under a Special Judge, to imprisonment

469
Words substituted by Finance Act, 2024.
470
Words substituted by Finance Act, 2024.
471
Words “Sales Tax” substituted for Inland Revenue by Finance (Amended) Ordinance, 2010.
472
Substituted for “Sales Tax” by Finance Act, 2010

83
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
this Act, acts or omits for a term which may extend to
or attempts to act or three years, or with fine 473[which
omit in a manner may extend to an amount equal to
causing loss to the the amount of tax evaded or sought
sales tax revenue or to be evaded], or with both.
otherwise abets or
connives in any such
act.
19. Any person who Such person shall pay a penalty of General.]
contravenes any of the five thousand rupees or three per
provision of this Act cent of the amount of tax involved,
474
[or the rules made whichever is higher. ]
thereunder] for which
no penalty has,
specifically, been
provided in this
section.
475
[ 20. *** ]
476
[21. Where any person Such person shall pay twice the General.
repeats an offence amount of penalty provided under
for which a penalty the Act for the said offence
is provided under
this Act
22. Any person who,- Such person shall pay a penalty of 50A.]
twenty-five thousand rupees or one
(a) knowingly and hundred per cent of the amount of
without lawful tax involved, whichever is higher.
477
authority gains [Without prejudice to above, he
access to or shall also be liable], upon
attempts to gain conviction by the Special Judge, to
access to the imprisonment for a term which
computerized may extend to one year, or with
system; or fine 478[which may extend to an
amount equal to the amount of tax
(b) unauthorizedly evaded or sought to be evaded], or
uses or with both.

473
Words substituted by Finance Act, 2024.
474
Words added through Finance Act, 2016.
475
Serial No. 20 omitted by Finance Act, 2008.
476
Serial No. 21 and 22 inserted by Finance Act, 2006.
477
Words substituted by Finance Act, 2024.
478
Words substituted by Finance Act, 2024.

84
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
discloses or
publishes or
otherwise
disseminates
information
obtained from
the
computerized
system; or

(c) falsifies any

record or
information
stored in the
computerized
system; or

(d) knowingly or
dishonestly
damages or
impairs the
computerized
system; or

(e) knowingly or
dishonestly
damages or
impairs any
duplicate tape
or disc or other
medium on
which any
information
obtained from
the
computerized
system is kept
or stored; or

(f) unauthorizedly
uses unique
user identifier
of any other
registered user

85
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
to authenticate
a transmission
of information
to the
computerized
system; or
(g) fails to comply
with or
contravenes
any of the
conditions
prescribed for
security of
unique user
identifier.
479
[23. Any person who (i) Such [specified goods] shall 40C(2)]
manufactures, be liable to outright confiscation
481
possesses, [as may be prescribed] 482[***].
transports, Any person committing the offence
distributes, stores or shall pay a penalty of twenty-five
sells 480[goods or thousand rupees or one hundred per
class of goods as cent of the amount of tax involved,
specified by the whichever is higher. 483[Without
Board under sub- prejudice to above, he shall also be
section (1) of section liable], upon conviction by a
40C] with Special Judge, to simple
counterfeited tax imprisonment for a term which
stamps, banderoles, may extend to three years, or with
stickers, labels or additional fine 484[which may
barcodes or without extend to an amount equal to the
tax stamps, amount of tax evaded or sought to
banderoles, stickers, be evaded], or with both.
labels or barcodes
(ii) In case of transport of
[specified goods] with
counterfeited tax stamps,
banderoles, stickers, labels or

479
S.No. 23 and entries relating thereto in columns (1), (2) and (3) inserted through Finance Act, 2017
480
Expression substituted by Finance Act, 2023
481
Words inserted by Finance Act, 2024.
482
Expression omitted by by Finance (Supplementary) Act, 2022.
483
Words substituted by Finance Act, 2024.
484
Words substituted by Finance Act, 2024.

86
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
barcodes, or without tax stamps,
banderoles, stickers, labels or
barcodes, permanent seizure of the
vehicle used for transportation of
non-conforming or counterfeit
[specified goods]; and

(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 485[shall be liable to be
sealed by an officer of Inland
Revenue in the manner as may be
prescribed.]
486
[“24. Any person, who is Such person shall pay a penalty of sub-section (9A) of
integrated for five hundred thousand rupees or section 3 and
monitoring, two hundred per cent of the amount section 40C.
tracking, reporting of tax involved, whichever is
or recording of sales, higher. [Without prejudice to
production and above, he shall also be liable], upon
similar business conviction by a Special Judge, to
transactions with the simple imprisonment for a term
Board or its which may extend to two years, or
computerized with additional fine which may
system, conducts extend to two million rupees, or
such transactions in with both.
a manner so as to
489
avoid monitoring, [Notwithstanding above,
tracking, reporting the business premises of
or recording of such such person shall be liable to
transactions, or be sealed by an officer of
issues an invoice Inland Revenue in the
which does not carry manner prescribed.]
the prescribed
invoice number or
barcode 487[or QR Any person who abets
code] or bears commissioning of such offence,

485
Words substituted by Finance Act, 2024.
486
New serial numbers “24”, “25”, “26” and “27” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
487
Words added by Finance Act, 2022.
489
Paragraph under serial number 24 inserted by Finance (Supplementary) Act, 2022.

87
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
duplicate invoice shall be liable, upon conviction by
number or a Special Judge, to simple
counterfeit barcode, imprisonment for a term which
488
[or QR code or may extend to one year, or with
defaces the additional fine which may extend
prescribed invoice to two hundred thousand rupees, or
number of barcode with both.
or QR code] or any
person who abets
commissioning of
such offence.

25. Any person, who is Such person shall be liable to pay a

required to integrate penalty up to one million rupees,
his business for and if continues to commit the 492
[***] section
monitoring, same offence after a period of 40C
tracking, reporting 490
[two] months after imposition of
or recording of sales, penalty as aforesaid, his business
production and premises 491[shall be liable to be
similar business sealed by an officer of Inland
transactions with the Revenue in the manner as may be
Board or its
prescribed.]
computerized
system, fails to get
himself registered
under the Act, and if
registered, fails to
integrate in the
manner as required
under law.
493
[25A A person required Such person shall be liable to pay: Sub-section (9A)
to integrate his (i) penalty of five hundred of section 3 495[and
business as thousand rupees for first sub-section (4) of
stipulated under sub- default; section 40C]
section (9A) of (ii) penalty of one million rupees
section 3, 494[or sub- for second default after

488
Words added by Finance Act, 2022.
490
The word substituted by Finance Act, 2020.
491
Words substituted by Finance Act, 2024.
492
Expression omitted by by Finance Act, 2022.
493
Serial number substituted by Finance Act, 2022.
494
Expression inserted by Finance Act, 2024.
495
Expression inserted by Finance Act, 2024.

88
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
section (4) of section fifteen days of order for first
40C,] who fails to default;
get himself (iii) penalty of two million rupees
registered under the for third default after fifteen
Act, and if days of order for second
registered, fails to default;
integrate in the (iv) penalty of three million
manner as required rupees for fourth default after
under the law and fifteen days of order for third
rules made default:
thereunder.] 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.]
496 Such person shall be liable to pay
[25AA. Any licensed sub-section (5) of
integrator who is penalty of rupees one million or section 40C.]
authorized to provide one percent of the total value of the
electronic invoicing sales suppressed, whichever is
system for integration of higher.
registered persons fails to
integrate such registered
persons in the manner as
required under this Act and
rules made thereunder.
26. Any person, being a Such person shall pay a penalty of sub-section (27) of
manufacturer or ten thousand rupees or five per cent section 2 and clause
importer of an item of the amount of tax involved, (a) of sub-section
which is subject to whichever is higher: (2) of section 3.
tax on the basis of
retail price, who fails Further, such goods shall also be
to print the retail liable to confiscation 497[as may be

496
New serial number 25AA inserted by Finance Act, 2024.
497
Words inserted by Finance Act, 2024.

89
 Sales Tax Act, 1990

Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
price in the manner prescribed.] However, the
as stipulated under adjudication authority, after such
the Act. 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 Such person shall pay a penalty of section 40D”;]
owner of the goods, ten thousand rupees or five per cent
which are brought to of the amount of tax involved,
Pakistan in violation whichever is higher:
of section 40D.
Further, such goods shall also be
liable to confiscation 498[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 in Third Schedule, of such
goods.

499[28. Any person who is Such person shall pay a penalty of 56AB]
required to share twenty five thousand rupees for
information under first default and fifty thousand
section 56AB, fails rupees for each subsequent default
to do so in the
manner as required
under the law

500[33A***].

498
Words inserted by Finance Act, 2024.
499
New serial number 28 added by Finance Act, 2020.
500
Section 33A omitted by Finance Act, 2022.

90
 Sales Tax Act, 1990

501[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 wilfully or otherwise, in time or in the manner specified under this
Act, rules or notifications issued thereunder 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 surcharge at the rate mentioned below:—
(a) 502[...] 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 503[twelve percent per annum or KIBOR
plus three percent per annum, whichever is higher], of the
amount of tax due or the amount of refund erroneously made;
504
[and]

505
[(b) ***]

(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

501
Section 34 substituted by Finance Act, 2005. Earlier it was also substituted by Finance Act, 1996.
502
Words and comma “for the first six months of default,” omitted by Finance Act, 2008.
503
Words substituted by by Finance Act, 2024.
504
Word inserted by Finance Act, 2008.
505
Clause (b) omitted by Finance Act, 2008.

91
 Sales Tax Act, 1990

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.

92
 Sales Tax Act, 1990

506
[34A. Exemption from penalty and 507[default surcharge].--
The Federal Government may, by a notification in the official Gazette, or
the 508[Board] by a special order published in Gazette for reasons to be
recorded in writing, exempt any person or class of persons from payment of
the whole or part of the penalty and 509[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.]
510
[35. ***]
511
[35A. ***]
512
[36. ***]

37. Power to summon persons to give evidence and produce

documents in inquiries under the Act.– (1) Any officer of 513[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 4[Inland
Revenue] may direct;

Provided that a person who is exempted from personal appearance

in a court under section 132 and 133 of the Code of Civil Procedure (Act V
of 1908), shall not be required to appear in person.

506
Section 34A substituted by Finance Ordinance 2001. Earlier it was inserted by Sales Tax (Amendment) Act, 1999 which comes into force from the
first day of December, 1998. Earlier the same was amendment was made by Sales Tax (Second Amendment) Ordinance, 1988, dated 01-12-1998.
507
Substituted for “additional tax” by Finance Act, 2005
508
Substituted for “Central Board of revenue” by Finance Act, 2007
509
Substituted for “additional tax” by Finance Act, 2005
510
Section 35 omitted by Finance Act, 1996.
511
Section 35A omitted by Finance Act, 1996. Earlier it was inserted by Finance Act, 1992.
512
Section 36 omitted by Finance Act, 2012. Earlier it was substituted by Finance Act, 1996. Before this it was substituted by the Finance Act, 1994.
513
Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this
amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published
in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

93
 Sales Tax Act, 1990

(3) Any inquiry before an officer of 514[Inland Revenue] shall be

deemed to be a judicial proceeding within the meaning of section 193 and
515
[228] of the Pakistan Penal Code (Act XLV of 1860).
516
[37A. Power to arrest and prosecute.-- (1) An officer of 517[Inland
Revenue not below the rank of an Assistant Commissioner of Inland
Revenue] or any other officer of equal rank authorised by the 518[Board] in
this behalf, who on the basis of material evidence has reason to believe that
any person has committed a tax fraud 519[or any offence warranting
prosecution under this Act] 520[…], 521[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).
522
[(3) ***]

(4) Notwithstanding anything contained in sub-section (1) to

subsection (3) or any other provision of this Act, where any person has
committed a tax fraud 523[or any offence warranting prosecution under this
Act], the 524[Commissioner] may, either before or after the institution of any
proceedings for recovery of tax, compound the offence if such person

514
Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance
(Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in
the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance
(Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 published
in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
515
Substituted for the figure “223” by Finance Act, 1994
516
Section 37A substituted by Finance Act, 1996.
517
Substituted for “sales tax”, not below the rank of an Assistant Collector of Sales tax by Finance Act, 2010
w.e.f June 5, 2010, the same amendment was made by Finance (amendment) Ordinance, 2010, promulgated as
Ordinance No.III of 2010, dated February 6, 2010, published in the Official Gazette of Pakistan Extraordinary
part I at pages 23 to 53.
518
Substituted for “Central Board of Revenue” by Finance Act, 2007
519
Words inserted by Finance Act, 2007.
520
Words “in respect of a supply or supplies made by him” omitted by Finance Act, 2007.
521
Substituted for the words “may arrest such person” by Finance Act, 2003
522
Sub-section (3) omitted by Finance Act, 2005.
523
Words inserted by Finance Act, 2007.
524
Substituted for “Collector” by Finance Act, 2010 w.e.f. june5, 2010, the same amendment was made by
Finance (Amendment) Ordinance 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010,
published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this amendment was made through
Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.

94
 Sales Tax Act, 1990

525
[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 526[or any offence
warranting prosecution under this Act] is a company, every director or
officer of that company whom the authorised officer has reason to believe
is personally responsible for actions of the company contributing the tax
fraud 527[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, 528[default
surcharge] and penalty imposed under this Act.]
529
[37B. Procedure to be followed on arrest of a person.-- (1) When
530
[an officer of Inland Revenue] authorized in this behalf arrests a person
under Section 37A, 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 considers 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:

Provided that nothing herein contained shall preclude the Special

Judge from cancelling the bail of any such person at a subsequent stage if,
525
Words substituted by Finance Act, 2024.
526
Words inserted by Finance Act, 2007.
527
Words inserted by Finance Act, 2007.
528
Substituted for “additional tax” by Finance Act, 2005
529
Section 37B inserted by Finance Act, 1995.
530
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.

95
 Sales Tax Act, 1990

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 531[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, 532[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), 533[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,

531
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.
532
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.
533
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.

96
 Sales Tax Act, 1990

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 534[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 proceedings against such
person, proceed with his trial and direct the prosecution to produce
evidence.

(10) 535[An officer of Inland Revenue] empowered to hold inquiry

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 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, 536[an officer of Inland Revenue]

shall, as early as possible, submit to Special Judge a complaint in the same
form and manner in which the officer incharge of a police station submits a
report, before a court.

534
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.
535
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.
536
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.

97
 Sales Tax Act, 1990

(12) 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,
537
[Board, with the approval of the Federal Minister-in-charge,] may, by
notification in the official Gazette, authorize any other officer working
under the 538[Board] to exercise the powers and perform the functions of
539
[an officer of Inland Revenue] under this section, subject to such
conditions, if any, that it may deem fit to impose.]
540
[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 headquarter 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.]
541[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 punishable 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

(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.

537
The expression substituted for the words “Federal Government” through Finance Act, 2019.
538
Substituted for “Central Board of Revenue” by Finance Act, 2007
539
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.
540
Section 37C inserted by Finance Ac, 2010 earlier a different section 37C was omitted by Finance Act, 2005 which was inserted by Finance Act,
1997.
541
Section 37D to 371 inserted by Finance Act, 2010.

98
 Sales Tax Act, 1990

(2) Upon the receipt of report under clause (a) of sub-section (1),
the Special Judge shall proceed with 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 an officer holding inquiry

under sub-section (3) may hold such inquiry, as early as possible, in
accordance with the provision of section 202 of the Code of Criminal
Procedure, 1898 (Act V of 1898).

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

99
 Sales Tax Act, 1990

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.]

37F. Provisions of Code of Criminal Procedure, 1898, to apply.–

(1) The provision 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 purpose of the said Code
and the provisions of Chapter XXIIA of the foresaid Code, so far as
applicable and with the necessary modifications, shall apply to the trial of
cases by the Special Judge under this Act.

(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.

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 (1), 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

100
 Sales Tax Act, 1990

recorded or produced before the court which tried the case before the
transfer.]

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.

37I. 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).]
542
[38. Authorised officers to have access to premises, stocks,
accounts and records – (1) Any officer authorised in this behalf by the
Board 543[or the Commissioner 544[***]] shall have free access 545[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 statements, 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

542
Section 38 Substituted by Finance Act, 1996.
543
Words inserted by Finance Act, 2010 w.e.f. June 5, 2010.
544
The words “or the Collector” were omitted by Finance Act, 2009.
545
Words inserted by Finance Act, 2020.

101
 Sales Tax Act, 1990

such 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.]
546
[(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.]
547
[38A. Power to call for information.— The
548
[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 549[:]]
550
[Provided that the 551[Commissioner] may require any regulatory
authority to provide information concerning the licenses and authorizations
issued by it.]
552
[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 of 553[an

546
New sub-section (4) inserted by Finance Act, 2020.
547
Section 38A inserted by Finance Act, 2004.
548
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
549
Substituted for full stop by Finance Act, 2007
550
Proviso inserted by Finance Act, 2007.
551
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010
552
Section 38B inserted by Finance Act, 2006.
553
Substituted for “a Deputy” by Finance Act, 2011

102
 Sales Tax Act, 1990

Assistant] 554[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 555[Inland Revenue] considers necessary or relevant
to the audit, inquiry or investigation under the Act;
(b) allow the officer of 556[Inland Revenue] to take extracts from
or copies of such documents or records; and

(c) appear before the officer of 557[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 558[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 559[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 Sales
Tax 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 560[Inland
Revenue].]

554
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
555
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
556
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
557
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
558
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
559
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
560
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010

103
 Sales Tax Act, 1990

561
[39. ***]
562
[40. Searches under warrant.– (1) Where any officer of 563[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 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 564[in his presence] under sub-section (1) shall
be carried out in accordance with the relevant provisions of the Code of
Criminal Procedure, 1898 (V of 1898).]
565
[40A. ***]
566
[40B. Posting of 6[Inland Revenue] Officer.– Subject to such
conditions and restrictions, as deemed fit to impose, the 567[Board],
568
[omitted..] may post Officer of 6[Inland Revenue] to the premises of
registered person or class of such persons to monitor production, sale of
taxable goods and the stock position 569[.] 570[omitted..]
571
[40C. Monitoring or Tracking by Electronic or other means.– (1)
Subject to such conditions, restrictions, and procedures, as it may being fit
to impose or specified, 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 date 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, band role stickers, labels, 572[barcodes,] etc. in

561
Section 39 omitted by Finance act, 1996.
562
Section 40 substituted by Finance Act, 2004.
563
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
564
The word and comma, inserted by the Finance Act, 2005
565
Section 40A omitted by Finance Act, 2006.
566
Section 40B inserted by Finance Act, 2003.
567
Substituted for “Central Board of revenue” by Finance Act, 2007
568
Words “or Chief Commissioner” omitted by Finance Act, 2018.
569
Colon omitted and full stop inserted by Finance Act, 2018.
570
Proviso and explanation omitted by Finance Act, 2018.
571
Section 40C inserted by Finance Act, 2013.
572
Word and comma inserted by Finance Act, 2015

104
 Sales Tax Act, 1990

any such form, style and manner as may be prescribed by the Board in this
behalf.]
573
[(3) Such tax stamps, banderols, stickers, labels, barcodes etc., shall
be acquired by the registered person referred to in sub-section (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.]
574
[(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

(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.]
575
[40D. Provisions relating to goods supplied from tax-exempt
areas.-(1) The conveyance 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 vehicle 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

573
Sub-section (3) added by Finance Act, 2015.
574
New sub-sections (4) & (5) inserted by Finance Act, 2024.
575
New Section “40D” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.

105
 Sales Tax Act, 1990

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, 576[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.”;]
577[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.]

578
[41. ***

42. ***]

576
Expression inserted by Finance Act, 2021.
577
New section 40E inserted by Finance Act, 2021.
578
Sections 41 and 42 omitted by Finance Act, 1996

106
 Sales Tax Act, 1990

Chapter-VIII
579
[APPEALS]

580
[43. ***
581[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 582[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

579
Heading of chapter Adjudication substituted for cases by finance act 1996
580
Sections 43 and 44 omitted by Finance Act, 1996
581
New section 43A added through Tax Laws (Amendment) Act, 2024.
582
Expression substituted by Finance Act, 2024 and shall be deemed to have taken effect from the 16th day of
June, 2024.

107
 Sales Tax Act, 1990

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.]

44. ***]
583
[45. ***]
584
[45A. Power of the Board 585[and 586[Commissioner]] to call for
records.-- (1) The Board may, of its own motion 587[, 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 decision or order passed therein by an Officer of
588
[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 589[this section] shall be initiated in a case
where an appeal under Section 590[45B] or Section 46 is pending.

(3) No order shall be made under this Section after the expiry of
591
[five] years from the date of original decision or order of the sub-ordinate
officer referred to in sub-section (1).
592
[(4) The 593[Commissioner] may, suo moto, call for and examine
the record of any proceeding under this Act or the rules made thereunder for
the purpose of satisfying himself as to the legality or propriety of any

583
Section 45 omitted by Finance Act, 2010
584
Section 45A added by Finance Act, 1993.
585
Substituted for “Collector and Collector (Adjudication)” by Finance Act, 2005. Earlier these were substituted for “and Collector” by Finance Act,
2003.
586
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No. III of 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extra Ordinary Part I at pages 229 to 259.
587
Words inserted by Finance Act, 2015.
588
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
589
Substituted for “sub-section (1)” by Finance Act, 2008
590
Substituted for the figure “45” by Finance Ordinance, 2002
591
Substituted for “three” by Finance Ordinance, 2000
592
Sub-section (4) substituted by Finance Act, 2005
593
Substituted for the word “Collector” by Finance Act, 2010

108
 Sales Tax Act, 1990

decision or order passed by an officer of 594[Inland Revenue] subordinate to

him, and pass such order as he may deem fit.]]
595
[45B. Appeals.– 596[(1) Any person, other than the Sales Tax
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, 597[if the value of the
assessment 598[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 599[.]
9
[****]

600
[(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–

594
Substituted for the words “Sales Tax” by Finance, Act, 2010
595
Section 45B inserted by Finance Ordinance, 2002
596
Subsection (1) Substituted by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance
(Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in
the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through
Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009,
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
597
Expression inserted by Tax Laws (Amendment) Act, 2024.
598
Words inserted by Finance Act, 2024.
599
For the colon a full stop substituted and second proviso omitted by Finance Act, 2020.
600
New sub-sections (1A and 1B) inserted by Finance Act, 2020.

109
 Sales Tax Act, 1990

(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.]
601 602
[ [(1C) Where in a particular case, the Commissioner (Appeals) is of
the opinion 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 orders appeal has
been made, may stay the recovery of such tax for a period not exceeding
thirty days in aggregate.]

(2) The 603[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 604[:]
605
[Provided that such order shall be passed not later than 606[one
hundred and twenty] days from the date of filing of appeal or within such
extended period as the 607[Commissioner] (Appeals) may, for reasons to be
recorded in writing fix:

601
Existing sub-section (1A) re-numbered as (1C) by Finance Act, 2020.
602
Inserted through Finance Act, 2013
603
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment)
Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated
as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this
amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published
in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
604
Colon inserted through Finance, Act, 2005
605
Two provisos inserted by Finance Act, 2005
606
Substituted for “ninety” by Finance Act, 2008.
607
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010,
promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan

110
 Sales Tax Act, 1990

Provided further that such extended period shall, in no case, exceed

608
[sixty] days 609[:]]
610
[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 1[Commissioner of Inland Revenue]

(Appeals) may make such further inquiry as may be necessary provided that
he shall not remand the case for de novo consideration.
611
[(4) ***]

612
[(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.– 613[(1) Subject to section

43A, any person, other than an SOE, aggrieved by any order 614[, 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: Provided that where

608
Substituted for “one hundred and twenty” by Finance Act, 2009, earlier it was substituted for “ninety” by Finance Act, 2008.
609
Substituted for full stop by Finance Act, 2009
610
Proviso inserted by Finance Act, 2009
611
Sub-section (4) omitted y Finance Act, 2006.
612
New sub-section (5) inserted by Finance Act, 2020.
613
Sub-section (1) substituted by Tax Laws (Amendment) Act, 2024.
614
Expression inserted by Finance Act, 2024.

111
 Sales Tax Act, 1990

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.]
615
[(2) The Appellate Tribunal may admit, hear and dispose of the
appeal as per procedure laid down in sections 616[131 and 132 of the Income
tax Ordinance, 2001(XLIX of 2001, and rules made thereunder.]
617 618
[ (2A)***]
619
[(3) ***

(4) ***

(5) ***

(6) ***

(7) ***

(8) ***

(9) ***]
620
[47. Reference to the High Court.- (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.

(2) Provisions of section 133 of the Income Tax Ordinance, 2001

(XLIX of 2001) and rules made thereunder relating to a reference to the

615
Sub-Section (2) substituted by Finance Act, 2009.
616
Substituted for “194A, 194B and 194C of the customs Act, 1969 (IV of 1969)” by Finance Act, 2010.
617
Sub Section (2A) inserted by Finance Act w.e.f. June 5, 2010.
618
Sub-section (2A) omitted by Tax Laws (Amendment) Act, 2024.
619
Sub-sections (3), (4), (5), (6), (7), (8) and (9) omitted by Finance Act, 2009.
620 Section 47 substituted by Tax Laws (Amendment) Act, 2024.

112
 Sales Tax Act, 1990

High Court shall, mutatis mutandis, apply to references to the High Court
under this Act.]
621
[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 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.]

621
Section 47A substituted by Tax Laws (Amendment) Act, 2024.

113
 Sales Tax Act, 1990

622[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).]

Chapter-IX

RECOVERY OF ARREARS
48. Recovery of arrears of tax.--(1) 623[Subject to sub-section
(1A), where] any amount of tax 624[...] is due from any person, the officer
of 625[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;
626
[(ca) require by a notice in writing any person to stop clearance of
imported goods or manufactured goods or attach bank
accounts;]

622
New section inserted by Finance Act, 2024.
623
Words etc. “levied, penalty imposed or demand raised under any bond or other instrument executed under this
Act” omitted by Finance Ordinance, 2002.
624
Substituted for “where” by Finance Act, 2007
625
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by
Finance Amendment) Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was
made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6,
2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was
made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated
October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
626
Clause (ca) inserted by Finance Act, 1999.

114
 Sales Tax Act, 1990

(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 627[; and]
628
(f) [...] recover such amount by attachment and sale of any
moveable or- 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 instrument
629
[:]

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 630[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 631[ten] per cent of the amount of tax
due has been paid by the taxpayer.]
632
[(1A) If any arrears of tax, default surcharge, penalty or any other
amount which is adjudged or payable by any person and which cannot be
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 633[Inland Revenue] shall have the same

627
Semi-colon and the word “’ and” at the end of clause (e) and thereafter clause (f) inserted by Finance Act, 1997. Earlier it was omitted by Finance
Act, 1996. Originally it was inserted by Finance Act, 1994.
628
Word “may” omitted by Finance Act, 2007.
629
For the full stop a colon substituted and thereafter proviso added through Finance Act, 2017
630
Expression inserted by Tax Laws (Amendment) Act, 2024.
631
Word ten substituted by Finance Act, 2018.
632
Sub-section (1A) inserted by Finance Act, 2007.
633
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made

115
 Sales Tax Act, 1990

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.
634
[(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
635
[49. Sales of taxable activity or transfer of ownership.--(1) In
case of termination of taxable activity or part thereof or its sale or 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.
636
[(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 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.]

[49A. Liquidators. – (1) Every person (hereinafter referred to as a

637

“liquidator”) who is –

(a) a liquidator of a company;

through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.
634
New sub-section inserted by Finance Act, 2021.
635
Section 49 Substituted by Finance Act, 1996
636
Sub-section (2) substituted through Finance Act, 2016.
637
Section 49A inserted by Finance Act, 2004.

116
 Sales Tax Act, 1990

(b) a receiver appointed by a Court or appointed out of

Court;

(c) a trustee for a bankrupt; or

(d) a mortgagee in possession;

shall, within fourteen days of being appointed or taking possession of an

asset in Pakistan, whichever occurs first, give written notice thereof to the
638
[Commissioner]. (2) The 4[commissioner] shall, within three months
of being notified under sub-section (1), notify the liquidator, in writing, of
the amount which appears to the 1[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 1[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 1[Commissioner] under
sub-section (2), or such amount as is subsequently agreed to by
the 1[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.

638
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.

117
 Sales Tax Act, 1990

(6) Where the proceeds of sale of any asset are less than the amount
notified by the 639[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.– 640[(1)] The Board may, by notification

in the official Gazette, make rules for carrying out the purposes of this Act
641
[, including rules for charging fee for processing of return, claims and
other documents and for preparation of copies thereof.]
642
[(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 643[or may be placed
regularly on the official website maintained by the Board.]
644
[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 thereunder, 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 645[matters such as
grant of] authorization, suspension and cancellation of authorization and for

639
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.
640
Brackets and figure inserted by Finance Act, 2008.
641
Comma and words inserted by Finance Act, 1994
642
Sub-section (2) inserted by Finance Act, 2008.
643
Words inserted by Finance Act, 2021.
644
Section 50A inserted by Finance Act, 2006.
645
Substituted for “their” by Finance Act, 2007

118
 Sales Tax Act, 1990

security of the information transmitted or received through the

computerized system.]
646
[(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.]
647
[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.

(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 computerised 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.
646
Sub-section (3) and (4) inserted by Finance Act, 2007.
647
Section 50B inserted by Finance Act 2014

119
 Sales Tax Act, 1990

648
[(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 thereunder 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
649
[Inland Revenue] in connection with any proceedings under this Act may,
in writing, authorise any person650[having such qualification as may be
prescribed] to represent him or appear on his behalf.
651
[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.

648
Sub section (3) inserted by Finance Act, 2004.
649
Substituted for “Sales Tax Act” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance,
2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance
No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was
made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette
of Pakistan Extraordinary Part I at pages 229 to 259.
650
Words inserted by Sales Tax (Amendment) Ordinance, 2000, dated September 5, 2000
651
Section 52A inserted by Finance Act, 2006.

120
 Sales Tax Act, 1990

(5) Where an e-intermediary, authorized by a registered person

under sub-section (2) to act on his behalf, knowingly or wilfully 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.

(6) The Board may, by notification in the official Gazette,

prescribe rules for the conduct and transaction of business of e-
intermediaries, 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.
652
[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 Inland Revenue or any other
person as it considers necessary or expedient for the purpose of removing
the difficulty.]

652
Substituted vide Finance Ordinance, 2001

121
 Sales Tax Act, 1990

[56. Service of orders; decisions etc. – (1) subject to this Act , any
653

notice, order 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-residents individual
the representative of the individual;
(b) sent by register post or courier service specified in clause (b) of
sub-section (2) or to the individual’s usual or last known
address in Pakistan; 654[..]

(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) 655[; or

(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 656[registered person].]

(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 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

653
Section 56 substituted vide Finance Act, 2010
654
The words “or” omitted through Finance Act, 2017
655
Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017
656
The words substituted by Finance Act, 2020.

122
 Sales Tax Act, 1990

or address, the notice is sent by registered [Post to any office

or place of business of the person in Pakistan; 657[..]

(c) served on the Person in the manner prescribed for service of a

summons under the code of civil procedure, 1908(Act V of
1908) 658[; or

(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 3[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 or a
member of 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.]
659
[56A. Agreement for the exchange of information 660[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.

657
The words “or” omitted through Finance Act, 2017
658
Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017
659
Sections 56A, 56B and 56C added by Finance Act, 2015
660
Words inserted by Finance Act, 2021.

123
 Sales Tax Act, 1990

661
[(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.
662
[(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.]
663
[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;

661
New sub-section (1A) inserted by Finance Act, 2021.
662
New sub-section (3) inserted by Finance Act, 2021.
663
New section 56AB inserted by Finance Act, 2020.

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 Sales Tax Act, 1990

(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.]

Disclosure of information by a public servant.─ (1) Any

664[56B.

information acquired under any provision of this Act shall be confidential

and no public servant shall disclose any such information, except as

664
Section 56B substituted through Finance Act, 2016.

125
 Sales Tax Act, 1990

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.]

56C. Prize schemes to promote tax culture.- 1[(1)] The Board may
prescribe prize schemes to encourage the general public to make purchases
only from registered persons issuing tax invoices.]

[(2) The Board may prescribe procedure for “mystery shopping” in

665

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.]
666
[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 sub section
(1), before the expiration of the Financial year next following the date 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.

665
Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021.
666
Section 57 is substituted by Finance Act, 2013.

126
 Sales Tax Act, 1990

(4) No order under sub-section (1) shall be made after five years
from the date of the order sought to be rectified.]
667
[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.

(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.”; and

(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.]
668
[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;

667
Section 58 substituted by Finance Act, 2019.
668
Section 58A and 58B inserted by Finance Act, 2008

127
 Sales Tax Act, 1990

(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 the
Provincial Government or local authority;

(e) where the person is an association of persons, a director or a

manager or 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 subdivision 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.

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 Sales Tax Act, 1990

(3) 669[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, for
a 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;

(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 670[Commissioner] by an order in

writing to be the representative of the non-resident person.
1
[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
1
[Commissioner] of being heard.]

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.

669
The expression substituted by and Explanation added by Finance Act, 2020.
670
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.

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 Sales Tax Act, 1990

(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 671[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

person that is in the possession of the representative or which
comes to the representative after the tax is payable, if such tax
could legally have been paid from or out of such moneys or
funds.

671
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010

130
 Sales Tax Act, 1990

(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.]
672
[59. Tax paid on stocks acquired before registration.– The tax
673
[. . .] paid on goods purchased by a person who is subsequently required
to be registered under section 14 due to new liabilities or levies or gets
voluntary registration under 674[this Act or the rules made thereunder], 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 and
constitute 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 an application for
registration shall be treated as an input tax subject to the condition that he
holds the bill of entry relating to such goods and also that these are verifiable
unsold or un-consumed stocks on the date of compulsory registration or on
the date of application for registration or for voluntary registration.]
675
[60. Powers to deliver certain goods without payment of tax.–
Subject to such conditions, limitations or restrictions as it thinks fit to
impose, 676[Federal Government] may authorise the 677[import] of goods or
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;
678
[(ii) registered manufacturer-cum-exporters who import raw
materials and intermediary products for further manufacture of
goods meant for export;]

672
Section 59 inserted by Finance Act, 1999. Earlier it was omitted by Finance Act, 1997. Earlier it was substituted through Finance Act, 1996.
673
Commas and words “, other than the turnover tax” omitted by Finance Act, 2004.
674
Substituted for “section 18” by Finance Act, 2004
675
Section 60 Substituted by Finance Act, 1998.
676
Words substituted by Finance Act, 2018.
677
Substituted for “delivery” by Finance Act, 1999
678
Clause (ii) substituted by the Finance Act, 1999.

131
 Sales Tax Act, 1990

679
[(iii) ***]

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 680[...]
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.
681
[61A. Repayment of tax to persons registered in Azad Jammu and
Kashmir.– Subject to such conditions, limitations or 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 any goods acquired in or imported into Pakistan
by the persons registered in Azad Jammu and Kashmir as are engaged in
making of zero-rated supplies.]
62. Drawback 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 in section 62,
the repayment of sales tax as drawback in respect of goods which have been
taken into use between importation and re-exportation shall be subject to

679
Clause (iii) omitted by Finance Act, 1999.
680
Words “the importation of” omitted by Finance Ordinance, 2002
681
Section 61A inserted by Finance Act, 2008.

132
 Sales Tax Act, 1990

such orders, conditions or 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; or

(b) prohibiting the repayment of tax as drawback on any such

goods or class of such goods; or

(c) varying the condition for the grant of drawback on any such
goods or class of such goods by restricting the period after
importation within which the goods must be re-exported.

64. Power to declare what goods are identifiable and to

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 to any specified foreign port or territory.

65. Exemption of tax not levied or short levied as a result of

general practice.– Notwithstanding anything contained in this Act, if in
respect of any supply the 682[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

682
Words substituted by Finance Act, 2018.

133
 Sales Tax Act, 1990

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
misconstruction 683[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 684[:]
685
[Provided that in a case where a registered person did not deduct
input tax within the relevant tax period, the 686[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 4[Commissioner]:]
687
[ Provided 688[further] that in a case where the refund has become
due on account of any decision or judgement of any officer of 689[Inland
Revenue] or court or the Tribunal, the period of one year shall be reckoned
from the date of judgement or decision of such officer, court or
Tribunal690[:]]

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.]
691
[Provided also that no refund shall be admissible under this
section if incidence of tax has been passed directly or indirectly to the
consumer.]

683
Words inserted by Finance Act, 1998.
684
Substituted for the full-stop by Finance Ordinance, 2001
685
Proviso inserted by Finance Ordinance, 2002.
686
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.
687
Proviso inserted by Finance Ordinance, 2001.
688
Word inserted by Finance Ordinance, 2002.
689
Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.
690
Substituted for full stop by Finance Act, 2005
691
Proviso inserted by Finance Act, 2011.

134
 Sales Tax Act, 1990

692
[67. Delayed Refund.– Where a refund due under section 10 is not
made within 693[the time specified in section 10 from the date] of filling of
694
[refund claim], there shall be paid to the claimant in addition to the
amount of refund due to him, a further sum equal to 695[KIBOR] per annum
of the amount of refund due, from the date following the expiry of [the time
specified 696[as aforesaid], to the day preceding the day 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 provision 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 7[:]
697
[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.]
698[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 699[ ] 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, (111 of 2015), in lieu of payment to be made through issuance of
cheques or bank debit advice.

(2) The Board shall issue a promissory note to FBR Refund

Settlement Company 700[ ] Limited, hereinafter referred to as the company,
incorporating the details of refund claimants and the amount of refund

692
Section 67 substituted by Finance Act, 1996.
693
Substituted for “thirty days” by Finance Act, 1997
694
Substituted for “return” by Finance Act, 2007
695
Substituted for “Six percent” by Finance Act, 2009, earlier the word “six” was substituted for “fourteen” by the Finance Act, 2004, before that it
was substituted for “ten” by Finance Supplementary (Amendment) Act, 1997. Which came into force on March 28, 1997, prior to this it was substituted
by Sales Tax (Second Amendment) Ordinance 1996, dated 2nd November, 1996.
696
Substituted for the words and figures “in section 10 from the date” by Finance Act, 2007.
697
Colon substituted for full stop and new proviso inserted by Finance Act, 2021.
698
New section 67A inserted by Finance Supplementary (Second Amendment) Act, 2019
699
The word “private” omitted by Finance Act, 2019.
700
The word “private” omitted by Finance Act, 2019.

135
 Sales Tax Act, 1990

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 Zakat against the

bonds and Sahib-e-Nisab may pay Zakat voluntarily 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 701[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 acts of his agent.–
When any person is expressly or impliedly authorised by a registered person

701
The expression substituted for the words “Federal Government” by Finance Act, 2019.

136
 Sales Tax Act, 1990

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.
702
[69. Issuance of duplicate of sales tax documents.– An officer of
703
[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 thereunder 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.

Special procedure.– 705[(1)] 706[The Board] may, by

704[71.

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.]
707
[(2) ***]
708
[(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.]
709
[72. Officers of 710[Sales Tax] to follow Board's orders, etc.– All
officers of 9[Inland Revenue] and other persons employed in the execution

702
Section 69 substituted by the Finance Act, 2008.
703
Substituted for the words “Sales Tax not below the rank of Assistant Collector” by the Finance Act, 2010
704
Section 71 inserted by Finance supplementary (Amendment) Act, 1997, which came into force on March 28, 1997. Earlier the same amendment
was made by Sales Tax (Second Amendment) Ordinance, 1996 and by Sales Tax (Amendment) Ordinance, 1997.
705
Section 71 re-numbered as sub-section (1) by Finance Act, 1999
706
The expression “Notwithstanding anything contained in this Act, the Federal Government” substituted through Finance Act, 2019.
707
Sub-section (2) omitted by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999. Earlier inserted by Finance Act, 1999.
708
Sub-section (3) inserted by Finance Act, 1999.
709
Sub-section (3) inserted by Finance Act, 1999.
710
Section 72 inserted by Finance Act, 1998.
9 Substitued for the Words “Sales Tax” by Finance Act, 2010.

137
 Sales Tax Act, 1990

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 [officers of 6[Inland Revenue]
in the exercise of their quasi-judicial functions.]
711
[72A Reference to the authorities.– Any reference to the Collector,
Additional Collector, Deputy Collector, Assistant Collector,
Superintendent, Senior Auditor and an officer of Sales Tax wherever occur
in this Act and rules, notifications, clarifications general orders or order
made or issued there under, shall be construed as reference to the
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 Inland Revenue, respectively.]
712
[72B. Selection of 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.
713
[(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.]

(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.]

711
Substituted for “sales” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.
712
Section 72A inserted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance Amendment) Ordinance, 2010,
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No.
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made
through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.
713
New sub-section (1A) added through Finance Act, 2019.

138
 Sales Tax Act, 1990

714
[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 after realization of part or whole of a taxes involve in such
cases.

(2) The Board may, by notification in the official Gazette,

prescribed 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.]
715
[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 evasion of tax fraud.

(2) The Board may, by notification in the official Gazette,

prescribe the procedure 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 detection or collection of taxes, fraud, corruption or misconduct,
to the competent authority having power to take action against the person
714
Section 72C substituted by Finance Act, 2013.
715
Section 72D added by Finance Act, 2015.

139
 Sales Tax Act, 1990

or a sales tax authority committing fraud, corruption, misconduct, or

involved in concealment or evasion of taxes.]
716
[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 thousand
rupees 717[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 718[:]
719
[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.]
720[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.
716
Section 73 substituted by Finance Act, 2004. Earlier it was substituted by Finance Act, 2003, which was
inserted by Tax Laws (Amendments) Ordinance, 1999.
717
Words inserted by Finance Act, 2024.
718
Substituted for full stop by Finance Act, 2005
719
Proviso inserted by Finance Act, 2005.
720
New proviso inserted by Finance Act, 2021.

140
 Sales Tax Act, 1990

(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 721[Commissioner] in whose
jurisdiction he is registered 722[through Form STR-1 or change of particulars
in registration database.]]

[“(4) A registered 724[person] shall not be entitled to deduct input

723

tax (credit adjustment or deduction of input tax) which is attributable to such

taxable supplies exceeding, in aggregate, one hundred million rupees in
financial year or ten million rupees in a tax period 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;
725
[***]
(c) all other persons not engaged in supply of taxable
goods; 4[and]
726
(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.]

721
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment)
Ordinance, 2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance,
2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan
Extraordinary Part I at pages 23 to 53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated
as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229
to 259.
722
Words inserted by Finance Act, 2013.
723
New sub-section “(4)” inserted through Tax Laws (Amendment) Act, 2020.
724
Word substituted by Finance Act, 2020.
725
Word “and” omitted and the word “and” inserted by Finance Act, 2020.
726
New clause (d) inserted by Finance Act, 2020.

141
 Sales Tax Act, 1990

727[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 728[Board] may, 729[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 [:]

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 [Commissioner] to exercise the powers under this section in
any case or class of cases.

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.]

Validation.– 731[(1) All notifications and orders issued and

730[74A.

notified in exercise of the powers conferred upon the Federal Government,

before the commencement of Finance Act, 732[2018] shall be deemed to
have been validly issued and notified in exercise of those powers.]
733
[(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.]

727
Section 74 added by the Finance Ordinance, 2002.
728
Substituted for the words “Central Board of Revenue” by Finance Act, 2007.
729
Words added by Finance Act, 2022.
730
Section 74A inserted through Finance Act, 2017
731
Existing provision numbered as sub-section (1) by Finance Act, 2018.
732
Figure substituted by Finance Act, 2018.
733
New sub-section (2) added by Finance Act, 2018.

142
 Sales Tax Act, 1990

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.]
734
[76. Fee and service charges.– 3[(1)] The 735[“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 public-private partnership,
at such rates as may be specified in the notification.]
736
[(2) The Board may authorize and prescribe the manner in which
fee and service charges collected under sub-section (1) shall be expended.]
737
[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.]

***************

734
New section 76 added through Finance Act, 2019.
735
Words “Federal Government” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
736
Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021.
737
New section 77 added by Finance Act, 2022.

143
 Sales Tax Act, 1990

SCHEDULES

The
FIRST SCHEDULE
738
[***]

The
SECOND SCHEDULE
739
[***]

740
[The
THIRD SCHEDULE
See 741[clause (a)] 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 Fruit juices and vegetable 20.09
juices
742
2 Ice Cream. [2105.0000]
3 Aerated waters or 22.01 and 20.02
beverages.
4 Syrups and squashes. Respective headings
5 Cigarettes. 2402.2000
743
[6 Toilet soap 3401.1100 and 3401.2000]
744 745
[7 Detergents [Respective heading]
8 Shampoo 3305.1000
9 Toothpaste 3306.1010

738
The first schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997.
739
The Second Schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997.
740
The Third Schedule Substituted by Finance Act, 1998, earlier it was inserted by Finance Act, 1996.
741
Substituted for the words, brackets and letter “clause (c)” by Finance Ordinance, 2002
742
Substituted for the figure “21.05” through Finance Act, 2017
743
Serial No.6 and entries relating thereto substituted by Finance Act, 2005, earlier these were inserted by Sales
Tax (Amendment) Ordinance, 2002, dated March 21, 2002.
744
Serial No.7 to 11 and entries relating thereto added by Finance Act, 2005
745
Expression substituted by Finance Act, 2022.

144
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No. Schedule to the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
10 Shaving cream 3307.1000
11 Perfumery and cosmetics Respective sub-headings of
33.03 and 33.04.]
746
[12 ***]omitted
13 ***] omitted
747
[14 Tea Respective sub-headings of
09.02
15 Powder drinks 21.06
16 Milky drinks 2106.9090]
748
[17 Toilet paper and tissue 4818.1000 and 4818.2000]
paper
749
[18. Spices sold in retail 09.04, 09.06, 09.08 and 09.10
packing bearing brand
names and trade marks
750
[19. ***]omitted
20. ***]omitted
21. Shoe polish and shoe 3405.1010]
cream
***]omitted
5
[22.
751
[23. ***]omitted
24. ***]omitted
25. ***]omitted
26. ***]omitted
27. ***]omitted
28. ***]omitted
29. ***]omitted
30. ***]omitted

746
Serial No.12 to 13 and entries relating thereto omitted by Finance Act, 2008
747
Serial No.14 to 16 and entries relating thereto added by Finance Act, 2005
748
Serial No.17 and entries relating thereto added by Finance Act, 2005
749
Serial No.18 to 21 and entries relating thereto added by Finance Act, 2006
750
Serial No.19 to 20 and entries relating thereto omitted by Finance Act, 2008
751
Serial Nos. 23 to 31, 34 and 35 entries relating thereto omitted by Notification No. S.R.O. 895(I)/2013, dated 4th October, 2013.

145
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No. Schedule to the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
31. ***]omitted
752
[32. ***]omitted
33. Cement sold in retail Respective heading
packing
34. ***]omitted
35. ***]omitted
753
[36. ***]omitted
754
[37. Mineral/bottled water Respective headings]
755[38.
Household electrical Respective headings
goods, including air
conditioners,
refrigerators, deep
freezers, televisions,
recorders and players,
electric bulbs, tube-lights,
electric fans, electric
irons, washing machines
and telephone sets.
39.
Household gas appliances, Respective headings
including cooking range,
ovens, geysers and gas
heaters.
40.
Foam or spring mattresses Respective headings
and other foam products
for household use.
41.
Paints, distempers, Respective headings
enamels, pigments,
colours, varnishes, gums,
resins, dyes, glazes,
thinners, blacks, cellulose

752
Serial No. 32 and entries relating thereto omitted by Finance Act, 2022.
753
Serial Nos. 22 and 36 and entries relating thereto omitted Notification No. S.R.O. 681(I)/2013, dated 26 th July, 2013.
754
New Serial number added through Finance Act, 2016
755
Serial numbers 38 up to 49 and entries relating thereto added through Finance Act, 2019.

146
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No. Schedule to the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
lacquers and polishes sold
in retail packing
42.
Lubricating oils, brake Respective headings
fluids, transmission fluid,
and other vehicular fluids
sold in retail packing.
43.
Storage batteries Respective headings
excluding those sold to
automotive manufacturers
or assemblers
44.
Tyres and tubes excluding Respective headings
those sold to automotive
manufacturers or
assemblers
45.
Motorcycles Respective headings
46.
Auto rickshaws Respective headings
47.
Biscuits in retail packing Respective Headings
with brand name
48.
Tiles Respective Headings
49.
Auto-parts, in retail Respective Headings]
packing, excluding those
sold to automotive
manufacturers or
assemblers
756[50.
[***] omitted with effect Respective heading]
from the 1st day of
December, 2021
757
[51. DAP Respective Headings]

756
Serial number 50 omitted by Finance (Supplementary) Act, 2022 w.e.f 1 st day of December, 2021.
757
New serial number 51 added by Finance Act, 2024.

147
 Sales Tax Act, 1990

The
FOURTH SCHEDULE
758
[***]
759
[The
FIFTH SCHEDULE
[See section 4]

Serial Description
No.
(1) (2)
760
[1. ***]omitted
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.]
761
[3. ***]omitted

762
[4. ***]omitted
763
[5. Supplies of raw materials 764[, components and goods for
further] manufacture of goods in the Export Processing
Zones.]
754
[6. ***]omitted
765
[6A. ***]omitted

758
Fourth Schedule omitted by Finance Act, 1998.
759
Fifth Schedule added by Finance Act, 1996.
760
S. Nos. 1 and 6 and entries relating thereto omitted by Finance Act, 2021.
761
Serial number 3 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022.
762
Serial No. 4 and entry relating thereto omitted by Finance Act, 2012
763
Serial No. 5 added by the Finance Act, 1997.
764
Substituted for the words “and components for” by the Sales Tax (Amendment) Ordinance, 1999
765
Serial number(s) 6A and 9 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022.

148
 Sales Tax Act, 1990

Serial Description
No.
(1) (2)
766
[7.Supplies made to exporters under the Duty and Tax
Remission Rules, 2001 subject to the observance of
procedures, restrictions and conditions prescribed therein.]
767
[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 768[Board] may impose. ]
769
[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.]
[9. ***]omitted
770
[10. ***]omitted
6
[11. ***]omitted
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, subject to the conditions, limitations and restrictions as
771
[prescribed by the Board]:--
772
[(i) to (ix) [......]]
773
[(x) ...

(xi) ...

(xii) ...

766
Serial No. 7 added by Finance Ordinance, 2001
767
Serial No. 8 and entries relating thereto inserted by Finance Act, 2004
768
Substituted f Revenue” by Finance Act, 2007
769
New serial No. 8A added by the Finance Act, 2023
770
S. Nos. 10 and 11 and entries relating thereto omitted by Finance Act, 2021.
771
Substituted for the word “specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007” through Finance Act, 2019.
772
Serial numbers (i) to (ix) omitted through Finance Act, 2016.
773
Clauses (x) to (xvi) omitted by Finance Act, 2015

149
 Sales Tax Act, 1990

Serial Description
No.
(1) (2)
(xiii) ...

(xiv) ...

(xv) ...

(xi) ...]
774
(xvii) [***]omitted
775
(xviii) [***]omitted

(xix) 776[***] omitted.

(xx) [***]omitted
(xxi) [***]omitted
(xxii) [***]omitted
(xxiii) [Exercise books (PCT heading 4820.2000)
(xxiv) [***]omitted
(xxv) [***]omitted
(xxvi) [***]omitted
(xxvii) [***]omitted
777
[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

774
Clauses (xvii), (xx), (xxi), (xxii), (xxiv), (xxv), (xxvi) and (xxvii) of serial number 12 omitted by Finance
Act, 2024.
775
Serial number (xviii) omitted through Finance Act, 2016.
776
Clause (xix) omitted by Finance (Supplementary) Act, 2022.
777
New serial numbers 13 and 14 inserted by Finance Act, 2020 shall have effect from the 1st June, 2020.

150
 Sales Tax Act, 1990

Serial Description
No.
(1) (2)
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

151
 Sales Tax Act, 1990

Serial Description
No.
(1) (2)
(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.]

778
[15. ***]omitted
779
16. [***] omitted
[17. [***] omitted
[18. ***]omitted
780
[19. ***]omitted
20. Petroleum Crude Oil (PCT heading 2709.0000)].
[21. [***] omitted

778
Serial numbers 15 and 18 omitted by Finance (Supplementary) Act, 2022.
779
Serial number(s) 16, 17 and 21 omitted by Finance Act, 2024.
780
Serial number 19 omitted by Finance Act, 2022.

152
 Sales Tax Act, 1990

781
[The
SIXTH SCHEDULE
[See section 13(1)]

Table-1
(Imports or Supplies)

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
782
[1. ***] omitted

[2. ***] omitted

[3. ***] omitted
783
[4. ***] omitted
5. ***] omitted
6. ***] omitted
7. ***] omitted
8. ***] omitted
9. ***] omitted
10. ***] omitted
[11. ***] omitted
[12. ***] omitted
784
13. ***] omitted

781
Sixth Schedule substituted by Finance Act, 2005. Earlier it was substituted by Finance Act, 1998. Originally it
was inserted by Finance Act, 1996.
782
Serial number(s) 1,2,3,11 and 12 omitted by Finance (Supplementary) Act, 2022.
783
S. Nos. 4 to10 and entries relating thereto omitted by Finance Act, 2006
784
Serial number 13 omitted by Finance Act, 2024.

153
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
14. Pulses. 0713.1000,
785
[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
786
[15. ***] omitted
16. Red chillies excluding those 788[0904.2110] and
sold 787[under] brand names and 789[0904.2210]
trademarks.
17. Ginger excluding those sold 791[09.10]
790
[under] brand names and
trademarks.
18. Turmeric excluding those sold 0910.3000
792
[under] brand names and
trademarks.
793
[19. Rice, wheat, wheat and meslin Respective heading]
flour
794
[20. ***] omitted
795
[21. ***] omitted

785
Substituted for the figure and comma “0713.2000” by the Finance Act, 2009
786
Serial number 15 omitted by Finance Act, 2024.
787
Word substituted by Finance Act, 2023
788
Substituted for PCT heading “0904.2010” by the Finance Act, 2012
789
Substituted for PCT heading “0904.2020” by the Finance Act, 2012
790
Word substituted by Finance Act, 2023
791
Substituted for the figure “0910.1000” through Finance Act, 2017
792
Word substituted by Finance Act, 2023
793
Serial number 19 substituted by Finance (Supplementary) Act, 2022.
794
Serial number 20 omitted by Finance (Supplementary) Act, 2022.
795
Serial number(s) 21and 23 omitted by Finance (Supplementary) Act, 2022.

154
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
796
[22. ***] omitted
[23. ***] omitted
773
[24. ***] omitted
797
[25. ***] omitted
795
[26. ***] omitted
795
[27. ***] omitted
798
[28. ***] omitted
795
[29. ***] omitted
799
[29A. ***] omitted
9B. ***] omitted
795
[29C. ***] omitted
800
[30. ***] omitted
31. Holy Quran, complete or in 801[4901.9910,
parts, with or without 8523.2100, 8523.2910,
translation; Quranic Verses 8523.2990,
recorded on any analogue or 802[8523.4910],
digital media; other Holy 803[8523.4920],
804
books. [8523.4190]
[...], [...], 8523.4190,
8523.5910, 8523.5990,
8523.8010,
8523.8020 and
8523.8090]

796
Serial numbers 22,24,26, 27, 29 and 29C omitted by Finance Act, 2021.
797
S. No. 25 and the entries relating thereto omitted by the Finance Act, 2013
798
Serial No. 28 and entries relating thereto omitted by Finance Act, 2015
799
S. Nos. 29A and 29B omitted by the Finance Act, 2011
800
S. No. 30 omitted by the Finance Act, 2011
801
Substituted for the words and figures “4901.9910 and respective headings of 85.24” by the Finance Act, 2007
802
Substituted for PCT heading “8523.4010” by Finance Act, 2012
803
Substituted for PCT heading “8523.4030” by Finance Act, 2012
804
Substituted for PCT heading “8523.4090” by Finance Act, 2012

155
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
805
[32. Newsprint and books but Respective headings]
excluding brochures, leaflets
and directories
33. Currency notes, bank notes, 806[49.07]
shares, stocks and bonds.
807
[34. ***] omitted
35. ***] omitted
808
[36. ***] omitted
809
[37. ***] omitted
810
38. Monetary gold. [7108.1390] 811[and
7108.2090]
812
[39. ***] omitted
813
[40. ***] omitted
814
[41. ***] omitted
42. ***] omitted
43. ***] omitted
44. ***] omitted
45. Dextrose and saline infusion 9018.3910, 9018.3920,
giving sets 815[***] along with 9021.3100,
empty non-toxic bags for 816[9021.3900] and
infusion solution, Dextrose and 817[Respective headings]
saline infusion giving sets,
Artificial parts of the body,
Intra-Ocular lenses and Glucose
testing equipment.

805 Serial number 32 substituted by Finance Act, 2022.

806
Substituted for the figure “4907.0000” by Finance Act, 2017
807
S. Nos. 34 & 35 omitted by the Finance Act, 2011
808
Serial number 36 omitted through Finance Act, 2019.
809
Serial number 37 omitted through Finance Act, 2019.
810
Substituted for the figure “7108.2000” by Finance Act, 2017
811
The word and figures added by the Finance Act, 2007
812
S. No. 39 and entries relating thereto omitted by Finance Act, 2015
813
S. No. 40 omitted by the Finance Act, 2006
814
S. Nos. 41 to 44 omitted by the Finance Act, 2011
815
The word “imported” omitted by the Finance Act, 2007
816
Substituted for the figures “9201.3900” by the Finance Act, 2007
817 Words substituted by Finance Act, 2022.

156
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
818
[46. ***] omitted
47. Import of articles of household 99.05
and personal effects including
vehicles and also the goods for
donation to projects established
in Pakistan imported by any of
the rulers of Gulf Sheikhdoms
who is in possession of
residential accommodation in
Pakistan and goods including
vehicles by the United Arab
Emirates dignitaries as are
listed in 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 99.03
under grants-in-aid for which a
specific consent has been
obtained from the 819[Board];
supplies and imports under
agreements signed by the
Government of Pakistan before

818
Serial number 46 omitted by Finance (Supplementary) Act, 2022.
819
Substituted for the words “Central Board of Revenue” by Finance Act, 2007

157
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
the 30th June, 1996, provided
the agreements contained the
provision for exemption of tax
at the time of signing of
agreement.
820
[49. ***] omitted
[50. ***] omitted
[51. ***] omitted
[52. ***] omitted
[52A. ***] omitted
[53. ***] omitted
[54. ***] omitted
[55. ***] omitted
821
[56. ***] omitted
[57. ***] omitted
[58. ***] omitted

59. Artificial kidneys, eye cornea, 99.24 824[, 99.25

hemodialysis machines, 825[,99.37] and 99.38]
hemodialyzers, A.V. fistula
needles, hemodialysis fluids

820
Serial number(s) 49 to 57 and 58 omitted by Finance (Supplementary) Act, 2022.
821
Serial No. 56 and entries relating thereto omitted by Finance Act, 2015
824
Substituted for the word and figures “and 99.25” by the Finance Act, 2008
825
The comma and figure inserted by the Finance Act 2014

158
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
822
[,] and 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, 823[cochlear
implants systems] 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).
826
[60. ***] omitted
[61. ***] omitted
827
[62. ***] omitted
[63. ***] omitted
828
[64. ***] omitted
65. ***] omitted
66. ***] omitted
67. ***] omitted
68. ***] omitted
69. ***] omitted
70. ***] omitted

822
Substituted for the word “and” by the Finance Act, 2008
823
The comma and words inserted by the Finance Act 2014
826
Serial number(s) 60, 61 and 63 omitted by Finance (Supplementary) Act, 2022.
827
S. No. 62 omitted by the Finance Act, 2011
828
S. Nos. 64 to 70 omitted by the Finance Act, 2011

159
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
829
[71. ***] omitted
[72. ***] omitted
830
[73. ***] omitted
73A. ***] omitted
74. ***] omitted
75. ***] omitted
76. ***] omitted
77. ***] omitted
78. ***] omitted
79. ***] omitted
80. ***] omitted
[81. ***] omitted
82. ***] omitted
83. ***] omitted
[84. ***] omitted
831
[85. ***] omitted
832
86. ***] omitted
87. ***] omitted
88. ***] omitted
89. Exercise books 4820.2000
90. ***] omitted
91. ***] omitted
[92. ***] omitted
93 ***] omitted
94. Wheelchairs 8713.1000 and
8713.9000
833
[95. ***] omitted
96. ***] omitted

829
Serial number(s) 71, 72, 81, 84 and 92 omitted by Finance (Supplementary) Act, 2022.
830
Serial numbers 73 to 80, 82, 83 and 85 omitted by Finance Act, 2021.
831
Serial numbers 85, 91 and 93 omitted by Finance Act, 2021.
832
Serial numbers 86, 87, 88, 90 and 96 omitted by Finance Act, 2024.
833
Serial number 95 and entries relating thereto is omitted through Finance Act, 2019.

160
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
834
97. ***] omitted
98. ***] omitted
835
[99. ***] omitted
100. Construction materials to Respective headings
836
[Gwadar] Export processing
Zone’s investors and to Export
Processing Zone 3[Gwadar] for
development of Zone’s
infrastructure
837
[100 Materials and equipment Respective Headings
838
A [(plant, machinery,
equipment, appliances and
accessories)] for construction
and operation of 3[Gwadar] Port
and development of Free Zone
for 3[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)
Gwadar International Terminal
Limited, (iii) Gwadar Marin
Services Limited and (iv)
Gwadar Free Zone Company
Limited, their contractors and
sub-contractors; and Ship

834
Serial numbers 97 and 98 omitted by Finance Act, 2024.
835
Serial number 99 omitted by Finance (Supplementary) Act, 2022.
836
Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017
837
New serial numbers 100A & 100B added through Finance Act, 2016.
838
The expression inserted through Finance Act, 2017

161
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
Bunker Oils bought and sold to
the ships calling on/visiting
3
[Gwadar] Port, 839[by the
aforesaid operating companies]
having Concession Agreement
with the Gwadar Port
Authority, for a period of forty
year, subject to the following
conditions and procedure,
namely,–
(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 840[Gwadar]

839 The expression inserted by Finance Act, 2020 shall have effect from the 1st June, 2020.
840
Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017

162
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
Port and development of
Free Zone for 1[Gwadar]
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

163
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
(iii) The goods so
imported 841[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
1
[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

841
The expression inserted and words substituted by Finance Act, 2020 shall have effect from the 1 st June,
2020.

164
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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
842
[Gwadar] Port and
development of Free
Zone for 1[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

842
Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017

165
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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 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;

166
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
(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.
1
[100B] Supplies made by the Respective headings
businesses to be established in

167
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
the Gwadar 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.
843
[100C Vehicles imported by China Respective headings
. 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)]
844
[100 Machinery, equipment, Respective headings
D materials and goods imported
either for exclusive use within
the limits of Gwadar Free Zone,

843
New S.No. 100C and entries relating thereto inserted through Finance Act, 2017
844
New serial number 100D inserted by Finance Act, 2020 shall have effect from the 1st June, 2020.

168
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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.]
845
[101. ***] omitted
846
[102. ***] omitted
847
[103. ***] omitted
[104. ***] omitted
[105. ***] omitted
848
[106. ***] omitted
107. Import and supply of iodized 2501.0010
salt bearing brand names and
trademarks whether or not sold
in retail packing.

845
Serial number 101 omitted by Finance Act, 2021.
846
Serial number(s) 102, 104 and 105 omitted by Finance (Supplementary) Act, 2022.
847
Serial number 103 omitted by Finance Act, 2021.
848
Serial numbers 106 and 108 omitted by Finance Act, 2021.

169
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
[108. ***] omitted
849
[109. ***] omitted
[110. ***] omitted
111. 850
[***] omitted […….]
112. Following cardiology/cardiac Respective headings
surgery, neurovascular,
electrophysiology,
endosurgery, endoscopy,
oncology, urology,
gynaecology, disposables and
other equipment:--
A. ANGIOPLASTY
PRODUCTS

1. Coronary Artery Stents

2. Drugs Eluting Coronary
Artery Stents
3. Coronary Artery
Dilatations Catheters
(Balloons)
4. PTCA Guide Wire
5. PTCA Guiding Catheters
6. Inflation Devices/Priority
Packs
7. 851[Optical Coherence
Technology (OCT)
System
8. OCT Catheters
9. Intravascular Ultrasound
(IVUS)

849
Serial number(s) 109 and 110 omitted by Finance (Supplementary) Act, 2022.
850
Serial No. 111, expression “White crystalline sugar” omitted through Finance Act, 2016.
851
New sub-serial No(s) 7 to.25 under entry A of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

170
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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. Atherectomy Devices
24. IABP Consoles &
Catheters
25. Intracardiac
Echocardiography
Machine & Catheters]

B. ANGIOGRAPHY
PRODUCTS

1. Angiography Catheters
2. Sheaths

171
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
3. Guide Wires
4. Contrast Lines
5. Pressure Lines
6. Mannifolds
852
7. [Wrist Bands for Radial
Vessel Closure]

C. CONTRAST MEDIA
FOR
ANGIOGRAPHY/ANG
IOPLASTY

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)

852
New sub-serial No. 7 under entry B of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

172
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)

F. HEART FAILURE
DEVICES
(with leads, connectors
and accessories)

G. IMPLANTABLE
CARDIOVERTES
(with leads, connectors
and accessories)

H. CARDIAC ELECTRO-
PHYSIOLOGY
PRODUCTS

1. Electrophysiology
catheters
2. Electrophysiology cables
3. Electrophysiology
connectors
4. 853[Excimer Laser System
with Accessories
5. Laser Sheath, Occlusion
Balloons, Dilator Sheaths
(Rotation & Manual)
6. Intra Cardiac
Echocardiography (ICE)
System and Accessories
7. Lead Locking Devices
and Accessory Kit

853
New sub-serial No(s) 4 to 11 under entry H of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

173
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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

I. Cold kits (cardiolotic

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
6. 854[High-Flow, Low-
Profile Percutaneous
Heart Pump PHP Console
and Catheters
7. Tandem Heart / Tandem
Lung and Accessories

854
New sub-serial No(s) 6 to 12 under entry J of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

174
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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
5. 855[Left Ventricular Assist
Device / System (LVAD)
and Catheters
6. MitraClipTranscatheter
Mitral Valve System

855
New sub-serial No(s) 5 to 18 under entry K of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

175
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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
17. Vascular Clips
18. MRI Compatible Cardiac
Monitor, Infusion Pump,
Anesthesia Machine with
Accessories]

L. PERIPHERAL
INTERVENTIONS
EQUIPMENT

176
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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 adapters
856
[“Drug Eluting Peripheral
Stents”].
857
[113. ***] omitted
[114. ***] omitted
858
[115. ***] omitted
[116. ***] omitted
[117. ***] omitted
859
118. ***] omitted [......]
860
119. [***] omitted [......]
861
120. ***]omitted
121. Blood Bag CPDA-1 with blood Respective headings
transfusion set pack in
aluminium foil with set.
862
[Explanation.– For removal
of doubt, it is clarified that the
blood transfusion sets not

856
Words “Drug Eluting Peripheral Stents” under entry L of S.No. 112 added by Finance Supplementary
(Amendment) Act, 2018.
857
Serial number(s) 113, 114, 116, and 117 omitted by Finance (Supplementary) Act, 2022.
858
Serial number 115 omitted by Finance Act, 2021.
859
S.No. 118 omitted by Finance Supplementary (Second Amendment) Act, 2019
860
Serial No. 119, expression “Tubular day..” omitted through Finance Act, 2016.
861
Serial number 120 omitted by Finance Act, 2024.
862
Explanation added by Finance Act, 2023

177
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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
863
[123. ***] omitted
[124. ***] omitted
[125. ***] omitted
864
[126. ***] omitted
127. ***] omitted
865
[128. ***] omitted
129. ***] omitted
866
[130. ***] omitted
[131. ***] omitted
[132. ***] omitted
133. Pesticides and their active 38.08
ingredients registered by the
Department 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 / 2902.1990
Terpenic derivative

863
Serial numbers 123 to 125 omitted by Finance Act, 2021.
864
Serial number(s) 126, 127 and 129 omitted by Finance (Supplementary) Act, 2022.
865
Serial number 128 omitted by Finance Act, 2021.
866
Serial number(s) 130 to 132 omitted by Finance (Supplementary) Act, 2022.

178
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
Toluene 2902.3000
Mixed xylene isomers 2902.4400
Naphthalene 2902.9010
Solvesso-100, 150, 200 2902.9090
867 3
[..] [..]
868 4
[..] [..]
Methanol (methyl alcohol) 2905.1100

Propylene glycol (propane-1, 2- 2905.3200

diol)
- Adhesives Polyvinyl Acetate 2905.4900
- Polyvinyl Alcohol
Ingredients for pesticides 2906.2910
Other ingredients for pesticides 2906.2990
- Solvenon MP / 1-Methoxy 2- 2909.4910
Propanol
- Methyglycol Acetate
Methanal (formaldehyde) 2912.1100
Cyclo-hexanone and methyl- 2914.2200
cyclo-hexanones
- 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
869
[***] omitted

867
The words “ingredients for pesticides” and the figure “2903.3040” omitted by Finance Act, 2017
868
The words “Cadusafos Technical Material” and figure “2903.6900” omitted by Finance Act, 2017
869
The words “ingredients for pesticides” and the figure “2918.9010” omitted by Finance Act, 2017

179
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
870
[***]omitted
871
[***]omitted
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
872
[***]omitted
Dimethyl Formamide (DMF) 2924.1990
873
[***]omitted
Other Ingredients for pesticides 2924.2990
Alpha cyano, 3-phenoxybenzyl 2926.9010
(-) cis, trans 3-(2,2-diclord
vinyl) 2,2 dimethyl
cyclopropane carboxylate
(S) Alpha cyano, 3- 2926.9020
phenoxybenzyl (S)-2-(4, chloro
phenyl)-3 mehtyl butyrate
Cyano, 3-phenony benzyl 2926.9030
2,2,3,3 tetra methyl
cyclopropane carboxalate
- Cypermethrin, Alpha 2926.9050
Cypermethrin, Beta-
Cypermethrin, Zeta-
Cypermethrin, Lambda
Cylalothrin, Deltamethrin,
Fenpropathrin, Esfenvalerate,
Bifenthrin

870
The words “ingredients for pesticides” and the figure “2919.0010” omitted by Finance Act, 2017
871
The words “other ingredients for pesticides” and the figure “2919.0090” omitted by Finance Act, 2017
872
The words “Tiethanolamine and its salts” and the figure “2922.1300” omitted by Finance Act, 2017
873
The words “ingredients for pesticides” and the figure “2924.2930” omitted by Finance Act, 2017

180
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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 2930.2010
sodium thiosulphate, 3-
thiosulfourropane
Ingredients for pesticides 2930.2020
2- N,N-dimethyamino 1,3 2930.9010
disodium thiosulphate propane
874
Other orgonosulpher [Respective headings]
compounds
- Ethion, Methamidophos
Technical Material
- Dimethysulfoxid
875
Ingredients for pesticides [Respective headings]
876
Other Ingredients for pesticides [Respective headings]
877
Ingredients for pesticides [Respective headings]
2,3 Dihydro 2-2 dimethyl-7 2932.9910
benzo furanyl methyl-
carbamate
Other ingredients for pesticides 2932.9990
- Carbosulfan Technical
Material

874
For expression, words “respective headings” substituted by Finance Act, 2022.
875
For expression, words “respective headings” substituted by Finance Act, 2022.
876
For expression, words “respective headings” substituted by Finance Act, 2022.
877
For expression, words “respective headings” substituted by Finance Act, 2022.

181
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
Fipronil 2933.1900
878
Ingredients for pesticides [Respective headings]
Other Ingredients for pesticides 2933.3990
- Chlorpyrifos, Triazophos, 2933.5950
Diazinon Technical Material
Other Ingredients for pesticides 2933.5990
Pyrimethanine 2933.6910
Ingredients for pesticides 2933.6940
- Atrazine Technical Material 2933.6990
Isatin (lactam of istic acid) 2933.7910
1-Vinyl-2-pyrrol-idone 2933.7920
- Triazophos Technical 2933.9910
Material
Ingredients for pesticides 2934.1010
Ingredients for pesticides 2934.9920
-Methyl benzimidazol – 2 – 2938.9010
ylcarbamate.
-Dicopper chloride trihydroxide
879
Ingredients for pesticides [2939.8010]
880
- Abamectin, Emamectin [Respective headings]
Technical Material
Other Ingredients for pesticides 2941.9090
881
Sulphonic acid (Soft) [Respective headings]
882
Other surface active agents [Respective headings]
883
Catonic [Respective headings]
884
Non ionic surface active agents [Respective headings]

878
For expression, words “respective headings” substituted by Finance Act, 2022.
879
Substituted for the figure “2939.9910” by Finance Act, 2017
880
For expression, words “respective headings” substituted by Finance Act, 2022.
881
For expression, words “respective headings” substituted by Finance Act, 2022.
882
For expression, words “respective headings” substituted by Finance Act, 2022.
883
For expression, words “respective headings” substituted by Finance Act, 2022.
884
For expression, words “respective headings” substituted by Finance Act, 2022.

182
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
885
Other organic surface active [Respective headings]
agents 3402.9000
886
Chemical preparations [3824.9999]
Solvent C-9 2707.5000
887
[White spirit 2710.1240
Solvent oil 2710.1250]
888
[134. ***] omitted
[135. ***] omitted
[136. ***] omitted
889
[137. Paper weighing 60 g/m2, art 4802.5510, 4810.1990,
paper, printing paper and art 4810.1910, 4802.6990
card for printing of Holy Quran and 4810.2900.]
imported by Federal or
Provincial Governments and
Nashiran-e-Quran as per quota
determined by IOCO
890
[138. ***] omitted
[139. ***] omitted
[140. ***] omitted
[141. ***] omitted
[142. ***] omitted
143. (i) Hearing aids (all types and 9937
kinds) (ii) Hearing assessment
equipment;
(a) Audiometers
(b) Tympanometer
(c) ABR
(d) Oto Acoustic Omission

885
For expression, words “respective headings” substituted by Finance Act, 2022.
886
Substituted for the figure “3824.9099” by Finance Act, 2017
887
New entries inserted by Finance Act, 2021.
888
Serial number(s) 134 to 136 omitted by Finance (Supplementary) Act, 2022.
889
S.No. 137 and entries relating thereto substituted by Finance Act, 2022.
890
Serial number(s) 138 to 142 omitted by Finance (Supplementary) Act, 2022.

183
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
144. Liquefied Natural Gas imported 2711.1100
by fertilizer manufacturers for
use as feed stock
145. Plant, machinery, equipment Respective heading
including dumpers and special
purpose 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

184
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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

185
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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 which
have not yet been
computerized shall be
made on weekly basis;
(vi) that the equipment and
construction machinery,

186
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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

187
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
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.
891
[146. ***] omitted
147. Goods supplied to German Respective heading
Development Agency

891
Serial number 146 omitted by Finance (Supplementary) Act, 2022.

188
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
(Deutsche Gesellschaft für
Internationale
Zusammenarbeit) GIZ
148. Imported construction materials Respective heading
and goods imported by M/s
China 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 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;

189
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
892
[149. ***] omitted
[150 ***] omitted
893
[151. (a) Supplies; and Respective heading
(b) imports of plant, machinery,
equipment for installation in
tribal areas and of industrial
inputs by the industries located
in the tribal areas, as defined in
the Constitution of Islamic
Republic of Pakistan,−
as made till 894[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 895[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

892
Serial number 149 and 150 omitted by Finance (Supplementary) Act, 2022.
893
New serial numbers 151 to 153 and entries relating thereto in column (2) and (3) inserted through Finance
Act, 2019.
894
Expression substituted by Finance Act, 2024.
895
Words substituted by Finance Act, 2024.

190
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
presentation 896[, 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
152. Supplies of electricity, as made 2716.0000
from the day of assent to the
Constitution (Twenty-fifth
Amendment) Act, 2018, till
897
[30th June, 2025], 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
898[153. ***]omitted

896
Expression substituted by Finance Act, 2024.
897
Expression substituted by Finance Act, 2024.
898
Serial number 153 omitted by Finance Act, 2021.

191
 Sales Tax Act, 1990

Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
899
[154. Dietetic foods intended for Respective heading
consumption by children
suffering from inherent
metabolic disorder subject to
the conditions that the importer
shall acquire approval and
quota from Ministry of National
Health Services, Regulations
and Coordination.
900
[155.***] omitted
901
[156.Import of CKD kits by local Respective heading]
manufacturers of following
Electric Vehicles:–
(i) Road Tractors for
semi-trailers (Electric Prime
Movers)
(ii) Electric Buses
(iii) Three Wheeler Electric
Rickshaw
(iv) Three Wheeler Electric
Loader
(v) Electric Trucks
(vi) Electric Motorcycle
902
[157. Import of CKD (in kit form) of Respective headings
following electric vehicles (4
wheelers) by local
th
manufacturers till 30 June,
2026:

899
New serial numbers 154 to 156 inserted by Finance Act, 2020.
900
Serial number 155 omitted by Finance (Supplementary) Act, 2022.
901
Serial number 156 substituted by Finance (Supplementary) Act, 2022.
902
New serial numbers 157 to 162 inserted by Finance Act, 2021.

192
 Sales Tax Act, 1990

(i) Small cars/SUVs with 50

Kwh battery or below;
and
(ii) Light commercial
vehicles (LCVs) with
150 kwh battery or
below
903
[158. ***] omitted
904
[159. ***] omitted
910
[160. ***] omitted
161. Import of plant, machinery, Respective headings
equipment and raw materials
for consumption of these items
within Special Technology
Zone by the Special
Technology Zone Authority,
zone developers and zone
enterprises
162. Import of raw materials, Respective headings]
components, parts and plant
and machinery by registered
persons authorized under
Export Facilitation Scheme,
2021 notified by the Board
with such conditions,
limitations and restrictions.
905
[163. Goods imported by various 99.01, 99.02, 99.03 and
agencies of the United Nations, 99.06
diplomats, diplomatic
missions, privileged persons
and privileged organizations
which are covered under
various Acts and, Orders, rules
and regulations made

903
Serial number 158 omitted by Finance (Supplementary) Act, 2022.
904
Serial numbers 159 & 160 omitted by Finance Act, 2023
905
New serial number(s) 163 to 174 added by Finance Act, 2022.

193
 Sales Tax Act, 1990

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.
164. Photovoltaic cells whether or 8541.4200 and 8541.4300
not assembled in modules or
made up into panels
165. Goods imported by or donated 99.13 and 99.14,
to hospitals run by the non-
profit 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 Respective headings
and natural gas supplied to
hospitals run by the charitable
hospitals of fifty beds or more.
167. Goods temporarily imported 99.19, 99.20 and 99.21
into Pakistan, meant for
subsequent exportation
charged to zero-rate of customs
duty subject to the similar
restrictions, limitations,
conditions and procedures as

194
 Sales Tax Act, 1990

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 906[excluding DAP] Respective headings
907
169. ***] omitted
170. ***] omitted
171. Seeds for sowing Respective heading
172. Machinery, equipment and Respective headings
materials imported either for
exclusive 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
the Customs Act, 1969 (IV of
1969) and rules made
thereunder shall mutatis
mutandis, apply.
173. Goods produced or Respective headings
manufactured in and exported
from Pakistan which are
subsequently imported in
Pakistan within one year of
their exportation, provided
conditions of section 22 of the

906 Words added by Finance Act, 2023

907
Serial numbers 169, 170 and 174 omitted by Finance Act, 2024.

195
 Sales Tax Act, 1990

Customs Act, 1969 (IV of

1969), are complied with.
174. ***]omitted
908
[175. Import of all goods received, in 9908(i) and 9911
the event of a natural disaster
or 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 Respective headings
Jammu and Kashmir
178. Import of gold under Respective heading
entrustment scheme under
SRO 760(I)/2013

908
Serial number(s) 175 to 180 inserted by Finance Act, 2024.

196
 Sales Tax Act, 1990

179. Import of cystagon, cysta drops 3004.9099

and trientine capsules (for
personal use only)
180. Bovine semen 0511.1000.]

197
 Sales Tax Act, 1990

909
[Annex-I
[See serial No. 100A & 100B]
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
authorized officer of the Ministry of Ports and Shipping) import)

Rate of sales tax

rate (applicable)

Date of CRN/
Customs duty

Collectorate
Description

Mach No.

Mach No.
imported
Quantity

Quantity
HS code

Specs

CRN/
UOM
(3) (4) (5) (6) (7) WHT
(8) (9) (10) (11) (12 (13) (14
) )

Header Information
NTN/FTN of Importer Approval No.
(1) (2)
Details of materials and equipments (to be Goods imported (Collectorate of
filled in by the authorized officer of the import)
Ministry of Ports and Shipping)

Date of CRN/
duty

Rate of sales tax

rate (applicable)

Collectorate
Description

Mach No.

Mach No.
imported
Customs

Quantity

Quantity
HS code

Specs

CRN/
UOM
WHT

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

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________________________
Designation ________________________
NOTE 2.– In case of clearance through Pakistan Customs Computerized
System, the above information shall be furnished online against a specific

909
Annexure-I inserted through Finance Act, 2016.

198
 Sales Tax Act, 1990

user I.D. and password obtained under section 155D of the Customs Act,
1969 (IV of 1969).

199
 Sales Tax Act, 1990

910
[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 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)

910
New Annexures A, B, C & D inserted by Finance Act, 2018.

200
 Sales Tax Act, 1990

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 Quantity/UOM L/C No. IGM No. Remarks, if
and or bank Date & any.
specifications. contract Index No.
No. and
B/L.
(1) (2) (3) (4) (5)
CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY
AUTHORITY:

201
 Sales Tax Act, 1990

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.

202
 Sales Tax Act, 1990

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
(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)]

203
 Sales Tax Act, 1990

NTN or FTN of Importer Approval No.

Details of equipment (to be filled by the authorized officer of the
Regulatory Authority) to be imported
Description Quantity/UOM L/C No. IGM No. Remarks, if
and or bank Date & any.
specifications. contract Index No.
No. and
B/L.
(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: ________________________”]

204
 Sales Tax Act, 1990

Table-2
(Local Supplies only)

Serial No Description Heading Nos. of the

First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
911
[1. ***] omitted
[2. ***] omitted
912 913
[3. [Supplies made by Respective headings.]
cottage industry.]
[4. ***] omitted
914
[5. ***]omitted
6. Supply of fixed assets Respective headings.
against which input tax
adjustment 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.
915
7. ***]omitted
08. Foodstuff cooked or Respective headings.
prepared in-house and
served in messes run on the
basis of mutuality and
industrial canteens for
workers.
[9. ***] omitted
10. Agricultural produce of Respective headings.
Pakistan, not subjected to

911
Serial number(s) 1, 2 and 4 omitted by Finance (Supplementary) Act, 2022.
912
S. No. 3 substituted by the Finance Act, 2007
913
Substituted by the Finance Act, 2014
914
S. No. 5 omitted by the Finance Act, 2011
915
Serial number 7 omitted by Finance Act, 2024.

205
 Sales Tax Act, 1990

Serial No Description Heading Nos. of the

First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
any further process of
manufacture.
916
[11. ***] omitted
917
[12. ***] omitted
]
918 919
[ [13. ***] omitted
2
[14. ***] omitted
920
[15. ***] omitted
[16. ***] omitted
921
[17. ***] omitted
18. ***] omitted
19. ***] omitted
20. ***] omitted
922
[21. ***] omitted
923
[22. ***] omitted
[23. ***] omitted
[24. ***] omitted
[25. ***] omitted
924
[26. Supply of locally produced Respective heading
silos till 30.06.2026
925
27. Wheat Bran [This 2302.3000
exemption shall apply from
the 1st day of July, 2018]

916
S. No. 11 omitted by the Finance Act, 2022.
917
S. No. 12 omitted by the Finance Act, 2013
918
S. Nos. 13 to 16 added by the Finance Act, 2014
919
S. No. 13 & 14 omitted by the Finance Act, 2015
920
Serial number(s) 9, 15 and 16 omitted by Finance (Supplementary) Act, 2022.
921
S. Nos. 17 to 20 and 24, 25 omitted by Finance Act, 2021.
922
Serial number 21 omitted by Finance Act, 2024.
923
Serial number(s) 22, 23 and 33 omitted by Finance (Supplementary) Act, 2022.
924
New serial numbers 26 to 39 inserted by Finance Act, 2021.
925
Expression added by Finance Act, 2023

206
 Sales Tax Act, 1990

28. Sugar beet 1212.9100

29. Fruit juices, whether fresh, 2009.1100, 2009.1200,
frozen or otherwise preserved 2009.1900, 2009.2100,
but excluding those bottled, 2009.2900, 2009.3100,
canned or packaged. 2009.3900, 2009.4100,
2009.4900, 2009.5000,
2009.6100, 2009.6900,
2009.7100, 2009.7900,
and 2009.9000
30. Milk and cream, concentrated 04.02
or containing added sugar or
other sweetening matter,
excluding that sold in retail
packing under a brand name
31. Flavored milk, excluding that 0402.9900
sold in retail packing under a
brand name
32. Yogurt, excluding that sold 927[Respective heading]
926
[***] under a brand name
[33. ***] omitted
34. Butter, excluding that sold 0405.1000
932
[***] under a brand name
35. Desi ghee, excluding that sold 0405.9000
932
[***] under a brand name
36. Cheese, excluding that sold 0406.1010
932
[***] under a brand name
37. Processed cheese not grated or 0406.3000
powdered, excluding that sold
932
[***] under a brand name
[38. ***] omitted928
39. Products of meat or meat offal 1602.3200, 1602.3900,
excluding sold 929[***] under 1602.5000, 1604.1100,
a brand name or trademark 1604.1200, 1604.1300,
1604.1400, 1604.1500,

926
Under serial number(s) 32 and 34 to 37 words omitted by Finance Act, 2023
927
Words substituted by Finance Act, 2022.
928
Serial number 38 omitted by Finance (Supplementary) Act, 2022.
929
Under serial number(s) 39, 41 and 42 words omitted by Finance Act, 2023

207
 Sales Tax Act, 1990

1604.1600, 1604.1900,
1604.2010, 1604.2020
and 1604.2090]
930
[40 Live Animals and live poultry Respective headings
41 Meat of bovine animals, Respective headings
sheep, goat and uncooked
poultry meat excluding those
sold 935[***] under a brand
name
42 Fish and crustaceans Respective headings
excluding those sold 935[***]
under a brand name
43 Live plants including bulbs, 0601.1010, 0601.1090,
roots and the like 0601.2000, 0602.1000,
0602.2000, 0602.3000,
0602.4000,
0602.9010 and
0602.9090
44 Cereals other than rice, wheat, Respective headings
wheat and meslin flour
931
[45 Edible vegetables including Respective heading]
roots and tubers whether
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 0407.1100, 0407.1900
hatching 0407.2100 and
0407.2900

49 Compost (non-commercial Respective headings

fertilizer)

930
Serial number(s) 40 to 51 inserted by Finance (Supplementary) Act, 2022.
931
Serial number 45 substituted by Finance Act, 2022.

208
 Sales Tax Act, 1990

50 Locally manufactured laptops, 8471.3010 and

computers, notebooks 8471.3020
whether or not incorporating
multimedia kit and personal
computers
51. Newspaper Respective headings
932
[52. Raw hides and skins Respective headings
53. Prepared food or foodstuff Respective heading
supplied by Restaurants and
caterers
54. All types of breads, nans and Respective headings.]
chapattis
933
[55. Single cylinder agriculture Respective headings.]
diesel engines (compression
ignition internal combustion
piston engines) of 3 to 36 HP.
934
[56. Milk excluding: 04.01
(i) that sold under a brand
name; or
(ii) supplied by corporate
dairy farms
57. Iron and steel scrap excluding 7204.4100,
supplied by manufacturer- 7204.3000,
cum-exporter of recycled 7204.4990.]
copper, authorized under
Export Facilitation Scheme,
2021.

Notes:--

1. For the purpose 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 the Schedule Pakistan Customs Tariff classification of headings

932
New serial number(s) 52 to 54 added by Finance Act, 2022.
933
New serial number 55 added by Tax Laws (Second Amendment) Ordinance, 2022.
934
New serial number(s) 56 and 57 added by Finance Act, 2024.

209
 Sales Tax Act, 1990

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.

---------
935
[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, 14, 936[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 bona
fide requirement. He shall furnish all relevant information
935
Inserted by Finance Act, 2014
936
The figure and words inserted through Finance Act, 2017

210
 Sales Tax Act, 1990

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.- 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 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) used in mining, agriculture, fisheries, animal husbandry,

floriculture, horticulture, livestock, dairy and poultry
industry.
937
[ANNEXURE

937
Inserted by Finance Act, 2014.

211
 Sales Tax Act, 1990

S. No Description PCT heading Conditions

(1) (2) (3) (4)
938
[1. ***] omitted
2& ***] omitted
2A
3. ***] omitted
4. ***] omitted

5. ***] omitted

6. ***] omitted

7. ***] omitted

8. ***] omitted

9. ***] omitted

939
10. ***] omitted

11. ***] omitted]

12. Machinery, equipment and Respective 1. The Division dealing

other project related items Headings with the subject matter of
including capital goods, for Industries shall certify in
setting up of hotels, power the prescribed manner and
generation plants, water format as per Annex-B
treatment plants and other that the imported goods
infrastructure related projects are bonafide project
located in an area of 30 km requirement. The
around the zero point in authorized officer of the
Gwadar. Ministry 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.
2. The goods shall not be
sold or otherwise disposed

938
Serial number(s) 1 to 9 and 11 omitted by Finance (Supplementary) Act, 2022.
939
Serial number 10 omitted by Finance Act, 2015.

212
 Sales Tax Act, 1990

S. No Description PCT heading Conditions

(1) (2) (3) (4)
of without prior approval
of the FBR and payment
of customs duties and
taxes leviable at the time
of import.
940
[13 ***] omitted
.
14. ***] omitted

14A ***] omitted

[15& ***] omitted

15A
15B. ***] omitted
941
[16 ***]
[17. ***] omitted
18. The following parts for If imported by
assembling and manufacturers and
manufacturing of personal assemblers of computers
computers and laptops: and laptops, registered
(i) Bare PCBs 8534.0000 with and certified by
(ii) Power Amplifier 8542.3300 Engineering
(iii) Microprocessor/ 85.42 Development Board in
Controllers accordance with quota
(iv) Equipment for SMT 8486.2000 determined by IOCO
Manufacturing
(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- 85.42
IC
(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

940
Serial number(s) 13 to 15B and 17 omitted by Finance (Supplementary) Act, 2022.
941
S.No. 16 and entries relating thereto omitted by Finance Act, 2015

213
 Sales Tax Act, 1990

(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 9917(2) Nil]
the items listed 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.
942
[20 Plant and machinery for the Respective The exemption shall be
. assembly/ manufacturing of heading admissible on one time
electric vehicles 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).]
943
[21 ***] omitted
944
[22 1.Machinery, equipment Respective (i) This concession
and spares meant for Headings shall also be
initial installation, available to
balancing, primary

942
New serial number 20 inserted by Finance Act, 2020.
943
Serial number 21omitted by Finance (Supplementary) Act, 2022.
944
New serial number 22 inserted by Finance Act, 2022.

214
 Sales Tax Act, 1990

modernization, contractors of the

replacement or project upon
expansion of fulfilment of the
projects for power following
generation through conditions,
hydel, oil, gas, coal, namely:-
nuclear and (a) the contractor
renewable energy shall submit a copy
sources including of the contract or
under construction agreement under
projects entered into which he intends to
an implementation import the goods for
agreement with the the project;
Government of (b) the Chief
Pakistan prior to Executive or head of
15th day of January, the contracting
2022. company shall certify
2. Construction in the prescribed
machinery, equipment manner and format as
and specialized vehicles, per Annex-A that the
excluding passenger imported goods are
vehicles, imported on the projects bona fide
temporary basis as requirement; and
required for the (c) the goods shall
construction of project. 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

215
 Sales Tax Act, 1990

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.]

945[“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 Goods imported (Collectorate of import)
executive of the importing company)
Custom Duty rate

rate

Quantity imported

Date of CRN/
(applic-able)

Sales Tax

Collectorate
(applicable)
Description

Mach No.
HS Code

Quantity

Mach.
CRN/
UOM
Specs

WHT

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

945 Annex-A substituted by Finance Act, 2022.

216
 Sales Tax Act, 1990

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.]
946
[Annex-B

Header Information
NTN/FTN of Importer Approval No.
(1) (2)
Details of Input goods (to be filled by the Goods imported (Collectorate of
authorized officer of the Regulatory Authority) import)
Sales Tax rate
Custom Duty

Date of CRN/
Collectorate

CRN/Mach.
(applicable)

(applicable)
Description
HS Code

imported
Quantity

Quantity
UOM
Specs

Mach
WHT
rate

No.

No.

(3) (4) (5) (6) (7) (8) (9 (10) (11) (12) (13) (14)
)

946
Inserted by the Finance Act, 2014

217
 Sales Tax Act, 1990

CERTIFICATE Before certifying the above-authorized officer of the

Regulatory Authority shall ensure that the goods are genuine and bona fide
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.
947[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;
(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

947
Table-4 added by Finance Act, 2021.

218
 Sales Tax Act, 1990

(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 0707.0000
chilled
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 0713.3100
(L.) Hepper or Vigna radiata (L.)
Wilczek
15 Small red (Adzuki) beans (Phaseolus 0713.3200
or Vigna angularis)
16 Kidney beans including white beans 0713.3300

219
 Sales Tax Act, 1990

17 Bambara – vigna subteranea or 0713.3400

vaahdzeia subterrea
18 Beans vigna unguiculata 0713.3500
19 Other 0713.3990
20 Lentils (Dry/Whole) 0713.4010
21 Broad beans (Vicia faba var. major) 0713.5000
and horse beans (Vicia faba var.
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 0906.1900
Tree Flowers)
26 Neither crushed nor ground 0907.1000
(Cloves)
27 Crushed or ground (Cloves) 0907.2000
28 Neither Crushed nor ground 0908.1100
(Nutmeg)
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 0909.2100
(Coriander)
36 Crushed or ground (Coriander) 0909.2200
37 Neither crushed nor ground (Seeds 0909.3100
of Cumins)
38 Crushed or ground (Seeds of 0909.3200
Cumins)
39 Neither crushed nor ground (Seeds 0909.6100
of Anise, Badian, Caraway, Fennel
etc)
40 Crushed or ground (Seeds of Anise, 0909.6200
Badian, Caraway, Fennel etc)

220
 Sales Tax Act, 1990

41 Thyme; bay leaves 0910.9910

42 Barley (Seeds) 1003.1000,
1003.9000
43 Sunflower seeds ,whether or not 1206.0000
broken
44 Locust beans 1212.9200
45 Cereal straws and husks 1213.0000
46 Knives and cutting blades for paper 8208.9010
and paper board
47 Of a fat content, by weight, not 0401.1000
exceeding 1 % (milk and cream)
48 Of a fat content, by weight, 0401.2000
exceeding 1 % but not exceeding 6
% (milk and cream)
49 Of a fat content, by weight, 0401.4000
exceeding 6 % but not exceeding
10% (Milk and Cream)
50 Of a fat content, by weight, 0401.5000
exceeding 10 % (Milk and Cream)
51 Leeks and other alliaceous 0703.9000
vegetables
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 0709.6000
the genus Pimenta
58 Figs 0804.2000
59 Fresh (grapes) 0806.1000
60 Dried (Grapes) 0806.2000
61 Melons 0807.1100,
0807.1900
62 Apples 0808.1000

221
 Sales Tax Act, 1990

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
70 Sugar Other 1702.1900
71 Caramel 1702.9020
72 Oil-cake and other solid residues, 2304.0000
whether or not ground or in the 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, 8205.5900
miners and hand tools nes
78 For kitchen appliances or for 8208.3000
machines used by the food industry
79 Other kitchen appliances 8208.9090

948
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

948 Expression substituted by Finance Act, 2022.

222
 Sales Tax Act, 1990

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 0910.1100
(Ginger)
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 3401.3000
preparations for washing the 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 6911.1090
porcelain or china
107 Household articles nes & toilet 6911.9000
articles of porcelain or china
108 Glassware for table or kitchen 7013.4900
purposes (excl. glass having a linear
c
109 Glassware nes (other than that of 7013.9900
70.10 or 70.18)
110 Spoons 8215.9910

223
 Sales Tax Act, 1990

111 Tableware articles not in sets and not 8215.9990

plated with precious metal
112 Bicycles and other cycles (including 8712.0000
delivery tricycles), not motorised
113 Vacuum flasks 9617.0010

114 Vacuum flasks/vacuum vessels 9617.0020.]

complete w/cases; parts o/t glass
inners (others)

224
 Sales Tax Act, 1990

The
SEVENTH SCHEDULE
949
[***]
950
[The
EIGHTH SCHEDULE
[See clause (aa) of sub-section (2) of section 3]
Table-1
S. Description Heading Nos. Rate of Condition
No. of the First Sales Tax
Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
951
[1. ***] omitted
952
[2. ***] omitted
953
[3. ***] omitted
954
[4. ***] omitted
[5. ***] omitted
6. ***] omitted
7. ***] omitted

8. ***] omitted

9. ***] omitted

10. ***] omitted

11. ***] omitted

12. ***] omitted

949
The seventh schedule omitted by the Finance Act, 1997
950
The eighth schedule inserted by the Finance Act, 2014
951
Serial numbers 1 and 5 omitted by Finance Act, 2021.
952
Serial number 2 omitted by Finance Act, 2020.
953
S. No. 3 and entries relating thereto omitted by Finance Act, 2015
954
Serial number(s) 4 and 6 to 12 omitted by Finance (Supplementary) Act, 2022.

225
 Sales Tax Act, 1990

S. Description Heading Nos. Rate of Condition

No. of the First Sales Tax
Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
955
[13. ***] omitted

[14. ***] omitted

15. ***] omitted
16. ***] omitted
17. ***] omitted
956
[18. ***] omitted
957
[19. ***] omitted
20. ***] omitted
958
[21. ***] omitted
959
[22. ***] omitted
23. Second hand and worn 6309.0000 5%
clothing or footwear
960
[25. ***] omitted
26. ***] omitted
27 ***] omitted
28 ***] omitted
29 ***] omitted
30 ***] omitted
961
[31. ***] omitted
962
[32. ***] omitted
2
[33. ***] omitted
34. ***] omitted

955
Serial number(s) 13 to 17, 20, 26 to 30 and 34 omitted by Finance (Supplementary) Act, 2022.
956
Serial number 18 and entries relating thereto is omitted through Finance Act, 2019.
957
Serial number 19 omitted by Finance Act, 2021.
958
Serial number 21 and entries relating thereto is omitted through Finance Act, 2019.
959
Serial number 22 omitted by Finance Act, 2021.
960
Serial number 25 omitted by Finance Act, 2022.
961
Serial number 31 omitted through Finance Act, 2016.
962
Serial number 32 and entries relating thereto is omitted through Finance Act, 2019.

226
 Sales Tax Act, 1990

S. Description Heading Nos. Rate of Condition

No. of the First Sales Tax
Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
963
[35 [***] omitted
to
42].
964
43. Natural gas Respective [5%] If supplied to fertilizer
heading plants for use as feed
stock in manufacturing
of fertilizer
44. Phosphoric acid 2809.2010 5% If imported by fertilizer
company for
manufacturing of DAP
965
45. ***] omitted
46. ***] omitted
47. Locally produced coal 27.01 Rs. Nil
966
[700]
per metric
tonne or
967
[18%]
ad
valorem,
whichever
is higher
968
[48 [***] omitted
& 49
969
[50 ***] omitted
.
[51. ***] omitted
970
[52 ***] omitted
.
53. The following 5% Subject to same
cinematographic limitations and
equipment imported conditions as are

963
S.No(s) 33 & 35 to 42 omitted by Finance Act, 2018.
964
For the figure “10” the figure “5” substituted through Finance Act, 2018.
965
Serial number(s) 45 and 46 omitted by Finance (Supplementary) Act, 2022
966 Expression substituted by Finance Act, 2022.
967
Expression substituted by Finance (Supplementary) Act, 2023.
968
S.No(s) 48 & 49 omitted by Finance Act, 2018.
969
S.No(s) 50 to 51 omitted by Finance Act, 2021.
970
Serial number 52 omitted by Finance Act, 2022.

227
 Sales Tax Act, 1990

S. Description Heading Nos. Rate of Condition

No. of the First Sales Tax
Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
during the period specified in Part-1 of
commencing on the Fifth Schedule to the
1st day of July, 2018 Customs Act, 1969 for
and ending on the availing 3%
30th day of June, concessionary rate of
2023. customs duty on the
import of these
equipment.”;
(i) Projector 9007.2000
(ii) Parts and 9007.9200
accessories for
projector
(iii) Other 9032.8990
instruments and
apparatus for
cinema
(iv) Screen 9010.6000
(v) Cinematographic 9010.9000
parts and
accessories
(vi) 3D Glasses 9004.9000
(vii) Digital Loud 8518.2200
Speakers
(viii) Digital Processor 8519.8190
(ix) Sub-woofer and 8518.2990
Surround
Speakers
(x) Amplifiers 8518.5000
(xi) Audio rack and 7326.9090
termination 8537.1090
board
(xii) Music 8519.8990
Distribution
System
(xiii) Seats 9401.7100
(xiv) Recliners 9401.7900
(xv) Wall Panels and 7308.9090
metal profiles

228
 Sales Tax Act, 1990

S. Description Heading Nos. Rate of Condition

No. of the First Sales Tax
Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
971
(xvi) Step Lights [Respective
headings]
(xvii)Illuminated Signs 9405.6000
(xviii) Dry Walls 6809.1100
(xix) Ready Gips 3214.9090
972
54. ***] omitted
55. ***] omitted
973
56. Potassium Chlorate Respective [18%] Import and supply
(KCLO3) headings alongwith thereof. Provided that
rupees rate of rupees 975[60]
974
[60] per kilogram shall not
per apply on imports made
kilogram by and supplies made
to organizations under
the control of Ministry
of Defence Production.
57. Rock phosphate Respective 10% If imported by fertilizer
headings manufacturers for use
in the manufacturing of
fertilizers.
976
[58 ***] omitted
.
[59. ***] omitted
977
[60 ***] omitted
.
61. ***] omitted
62. ***] omitted
63. ***] omitted
64. ***] omitted
978 ***] omitted
[65
.

971
Words substituted by Finance Act, 2022.
972
Serial number(s) 54, 55, 59 and 61 to 64 omitted by Finance (Supplementary) Act, 2022
973
Expression substituted by Finance (Supplementary) Act, 2023.
974
The figure substituted by Finance Act, 2022.
975
The figure substituted by Finance Act, 2022.
976
S.No. 58 omitted by Finance Act, 2024.
977
Serial number 60 “Fat filled Milk” omitted by Finance Act, 2022.
978
Serial numbers 65 and 67 omitted by Finance Act, 2021.

229
 Sales Tax Act, 1990

S. Description Heading Nos. Rate of Condition

No. of the First Sales Tax
Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
979 ***] omitted
66.
***] omitted
980
[66
A
66B ***] omitted
67. ***] omitted
68. ***] omitted
69. ***] omitted
981
[70 Following locally Respective 1%
. manufactured electric Heading Local supplies only]
vehicles
(i) Road
Tractors for semi-
trailers (Electric
Prime Movers)
(ii) Electric
Buses
(iii) Three
Wheeler Electric
Rickshaw
(iv) Three
Wheeler Electric
Loader
(v) Electric
Trucks
(vi) Electric
Motorcycle
982[71
Following locally Respective 1% If supplied locally
. manufactured or heading
assembled electric
vehicles (4

979
S.No. 66 omitted by Finance Act, 2024.
980
Serial number(s) 66A, 66B and 68, 69 omitted by Finance (Supplementary) Act, 2022
981
Serial number 70 substituted by Finance (Supplementary) Act, 2022
982
New serial numbers 71 to 74 inserted by Finance Act, 2021.

230
 Sales Tax Act, 1990

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
72. Motorcars 87.03 12.5% Locally
manufactured or
assembled motorcars
of cylinder capacity
upto 983[850cc]
984
[73 Locally
. manufactured
Hybrid electric
985
vehicle [till 30th
June, 2026]: 87.03 8.5%.
(a) Upto 1800 cc 87.03 12.75%
(b) From 1801 cc
to 2500 cc
74. Goods supplied Respective 16%.]
from tax-exempt headings
areas of erstwhile
FATA/PATA to the
taxable areas
986
[75 ***]omitted
987 ***] omitted
[76

983
Expression substituted by Finance (Supplementary) Act, 2022.
984
Serial number 73 substituted by Finance (Supplementary) Act, 2022
985
Expression inserted by Finance Act, 2024.
986
Serial number 75 omitted by Finance Act, 2022.
987
Serial number 76 omitted by Finance (Supplementary) Act, 2022

231
 Sales Tax Act, 1990

988
[77 Imported personal 8471.3020 10%
computers and and
Laptop computers, 8471.3010
notebooks whether
or not incorporating
multimedia kit
989
[78 Supply of locally 71.13 3% No input tax shall be
. manufactured adjusted
articles of
jewellery, or parts
thereof, of precious
metal or of metal
clad with precious
metal.
79. Electric vehicle in 8703.8090 12.5%
CBU condition of
50 kwh battery or
below
80. EV transport buses Respective 1%
of 25 seats or more heading
in CBU condition
990[81
Substances Respective 1% Subject to the
. registered as drugs heading conditions that:
under the Drugs (i) Tax charged and
Act, 1976 (XXXI of deposited by the
1976) manufacturer or
991
[***]omitted 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.

988
Serial number 77 substituted by Finance Act, 2024.
989
New serial number(s) 78 to 82 added by Finance Act, 2022
990
Serial numbers 81 & 82 substituted by Finance Act, 2023
991
Expression omitted by Finance Act, 2024.

232
 Sales Tax Act, 1990

82. Raw materials for Respective 1% Subject to the

the basic heading conditions that: (i)
manufacture of DRAP shall certify
pharmaceutical item-wise
active ingredients requirement of
and for manufacturers of
manufacture of drugs and APIs and
pharmaceutical in case of import
products, provided shall furnish all
that in case of relevant information
import, only such to Pakistan Customs
raw materials shall Computerized
be entitled to System; and (ii) No
reduced rate as input tax shall be
specified in column adjusted in the
(4) which are liable supply chain.]
to customs duty not
exceeding eleven
per cent ad
valorem, either
under the First
Schedule or Fifth
Schedule to the
Customs Act, 1969
(IV of 1969) or
under a notification
issued under
section 19 thereof.
992[83
DAP Respective 5% Subject to the
headings condition that no
refund of excessive
input tax, if any,
shall be admissible.]
(i) Colors in sets 3213.1000

992
New serial number added by Finance Act, 2023

233
 Sales Tax Act, 1990

993
84 (ii) Writing, 3215.9010
. drawing and and
marking inks 3215.9090
(iii) Erasers 4016.9210
and
4016.9290
(iv) Pencil 8214.1000
sharpeners
(v) other drawing, 9017.2000
marking out or
10%
mathematical
calculating
instruments
(geometry box)
(vi) Pens, ball pens, 96.08
markers and porous
tipped pens
(vii) Pencils 96.09
including color
pencils
85. Oil cake and other 2306.1000 10%
solid residue
86. Tractors 8701.9220 10%
and
8701.9320
87. Local supply of Respective 10%
vermicillies, sheer headings
mal, bun and rusk
excluding those
sold in bakeries,
and sweet shops
falling in the
category of Tier-1
retailers.
88. Local supply of 2306.3000, 10%
poultry feed, cattle 2306.4900

993
Serial number(s) 84 to 88 inserted by Finance Act, 2024.

234
 Sales Tax Act, 1990

feed, sunflower and

seed meal, rape respective
seed meal and headings
canola seed meal

994[Table-2 ***]
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 Goods imported (Collectorate
executive of the importing company) of import)
rate (applic-

Sales Tax rate

Custom Duty

Date of CRN/
Collectorate
(applicable)
Description

Mach No.
HS Code

imported
Quantity

Quantity

Mach.
Specs

CRN/
UOM
WHT
able)

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 online against a specific
user I.D. and password obtained under section 155D of the Customs Act,
1969.
Explanation.—
Chief Executive means.—

994
Table -2 omitted by Finance (Supplementary) Act, 2022.

235
 Sales Tax Act, 1990

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 Goods imported
authorized officer of the Regulatory (Collectorate of import)
Authority)
Sales Tax rate
Custom Duty

Date of CRN/
Collectorate

CRN/Mach.
(applicable)

(applicable)
Description
HS Code

imported
Quantity

Quantity
UOM
Specs

Mach
WHT
rate

No.

No.
(12
(3) (4) (5) (6) (7) (8) (9) (10) (11) (13) (14)
)

CERTIFICATE. Before certifying the above-authorized officer of the

Regulatory Authority shall ensure that the goods are genuine and bona fide
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 online against a specific
user I.D. and password obtained under section 155D of the Customs Act,
1969.
-------------

236
 Sales Tax Act, 1990

[The
995

NINTH SCHEDULE
[See sub-section (3B) of section 3]

996
[Table-I
Sales Tax on supply (payable at the time of supply by CMOs):
S. No. Description / Specification of Sales tax on supply
Goods (payable at the time of
supply by CMOs)
(1) (2) (3)
1. Subscriber Identification Rs. 250
Module (SIM) Cards

997[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.]

995
The Ninth Schedule added by the Finance Act, 2015
996 Table-I, Table-II and conditions substituted by Finance Act, 2020.
997 Proviso and Explanation to Table-1 inserted by Finance Act, 2021.

237
 Sales Tax Act, 1990

998[Table-II

Cellular mobile phones in CKD/CBU form:

S. Description / Sales tax on Sales tax Sales tax on
No. Specification of CBUs at the on import supply of locally
Goods time of in manufactured
import or CKD/SKD mobile phones in
registration condition CBU condition in
(IMEI addition to tax
number by under column (4)
CMOs)
(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 18% ad 18% ad 18% ad valorem
US$ 500 valorem valorem
B. Exceeding US$ 25% ad 18% ad 18% ad valorem
500 valorem valorem

LIABILITY, PROCEDURE AND CONDITIONS

[(i) The liability to pay the tax on the goods specified in this Schedule
shall be–

998
Table-II substituted by Finance Act, 2024.

238
 Sales Tax Act, 1990

(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;
999
[(iii), (iv) and (v).]

1000[The

TENTH SCHEDULE
[See sub-section (1B) of section 3]
1001
[(1)]The tax on bricks, falling in PCT heading 1002[6901.0000],
shall be paid on fixed basis, 1003[ ] at the rates specified in Table
below:–

999
Clauses (iii), (iv) and (v) under Table-II omitted by Finance Act, 2024.
1000
The new Tenth Schedule, the Eleventh Schedule and the Twelfth Schedule added through Finance Act, 2019.
1001
Existing paragraph renumbered as paragraph (1) by Finance Act, 2020.
1002
PCT heading “6901.1000” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020
1003
Expression “on monthly return,” Omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020

239
 Sales Tax Act, 1990

TABLE
S. Region or area Tax
No. payable
per month
(1) (2) (3)
1. Lahore, Rawalpindi and Islamabad Rs. 12,500
districts
2. Attock, Chakwal, Jehlum, Mandi Rs. 10,000
Bahauddin, Sargodha, Gujrat, Sialkot,
Narowal, Gujranwala, Hafizabad,
Sheikhupura, Kasur, Nankana Sahib,
Chiniot, Faisalabad, Jhang, Toba Tek
Singh, Okara and Sahiwal districts
3. Khushab, Mianwali, Bhakar, Layyah, Rs. 7,500
Muzaffarghar, Dera Ghazi Khan,
Rajanpur, Multan, Lodhran, Khanewal,
Vehari, Bahawalpur, Pakpattan,
Bahawalnagar, Rahim Yar Khan
districts; and Sindh, Khyber-
Pakhtunkhwa and Baluchistan provinces

240
 Sales Tax Act, 1990

1004
[(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)
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]
(volume greater than 1 cubic
feet)

Note: No input tax adjustment shall be allowed against the tax paid under
this Schedule.]

1004
New paragraph (2) and its Table along with Note inserted by Finance Act, 2020.

241
 Sales Tax Act, 1990

1005[The

ELEVENTH SCHEDULE
[See sub-section (7) of section 3]

TABLE
The rates for withholding or deduction by the withholding agents 1006[are specified
as below provided that withholding of tax under this Schedule shall not be
applicable to the goods and supplies specified vide clauses 1007[***] after the
Table]

S. Withholding agent Supplier Rate or extent of deduction

No. category
(1) (2) (3) (4)
1008
1. (a) Federal and provincial [Active 1/5th of Sales Tax as shown on
government departments; Taxpayers] invoice
autonomous bodies; and
public sector organizations
(b) Companies as defined in
the Income Tax Ordinance,
2001 (XLIX of 2001)
2
2. (a) Federal and provincial [Active 1/10th of Sales Tax as shown
government departments; Taxpayer] on invoice
autonomous bodies; and registered as a
public sector organizations wholesaler,
dealer or
(b) Companies as defined in distributor
the Income Tax Ordinance,
2001 (XLIX of 2001)
2
3. Federal and provincial [persons Whole of the tax involved or
government departments; other than as applicable to supplies on
autonomous bodies; and Active the basis of gross value of
public sector organizations Taxpayers] supplies
2
4. Companies as defined in the [persons 5% of gross value of supplies
Income Tax Ordinance, 2001 other than
(XLIX of 2001) Active
1009
[excluding companies Taxpayers]
exporting surgical
instruments]

1005
Eleventh Schedule inserted by Finance Act, 2019.
1006
The expression substituted by Finance Act, 2020.
1007 Expression omitted by Finance Act, 2022.
1008
Words substituted by Finance Act, 2020.
1009
Words added by Finance Act, 2022.

242
 Sales Tax Act, 1990

S. Withholding agent Supplier Rate or extent of deduction

No. category
(1) (2) (3) (4)
5. Registered persons as Person Whole of sales tax applicable
recipient of advertisement providing
services advertisement
services
6. Registered persons 2[persons Whole of sales tax applicable.
purchasing cane molasses. other than
Active
Taxpayers]
1010 1012
[7. Registered persons Persons [80]% of the sales tax
manufacturing lead batteries supplying any applicable”.
kind of lead
under chapter
78 (PCT
Headings:
7801.1000,
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
Headings:
1011
[Respectiv
e headings]

1010
New serial numbers 7 and 8 inserted by Finance Act, 2021.
1011
Words added by Finance Act, 2022.
1012
Expression substituted by Finance Act, 2024.

243
 Sales Tax Act, 1990

1013
8. Online market place Persons [1]% of gross value
other than of supplies:
active Provided that the
taxpayers provisions of this entry
shall be effective from
the date as notified by
the Board.]
1014
9 Registered persons Persons 80% of the sales tax
. manufacturing cement supplying applicable
any kind of
gypsum
under
chapter 25
(PCT
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 80% of the sales tax
supplying applicable
any kind of
coal under
chapter 27
(PCT
headings
2701.1100,
2701.1200,
2701.1900,

1013
Expression substituted by Finance Act, 2022.
1014
New serial number(s) 9 to 13 inserted by Finance Act, 2024.

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 Sales Tax Act, 1990

2701.2000,
2704.0010,
2704.0020,
2704.0090)

11. Registered persons Persons 80% of the sales tax

supplying applicable
any kind of
waste of
paper and
paper board
(Respective
headings)
12. Registered persons Persons 80% of the sales tax
supplying applicable
any kind of
plastic
waste
(Respective
headings)
13. Registered persons Persons 80% of the sales tax
supplying applicable
crush stone
and silica

(i) Electrical energy;

(ii) Natural Gas;

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 Sales Tax Act, 1990

(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;
1015
(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]; and
1016
[(ix) Supply of sand, stone, gravel/crush and clay to low cost
housing schemes sponsored or approved by Naya Pakistan
Housing and Development Authority.]

1015
Clause (viii) substituted by Finance Act, 2024.
1016
New clause (ix) inserted by Finance Act, 2020.

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 Sales Tax Act, 1990

1017[The

TWELFTH SCHEDULE
[See sub-section (2) of section 7A]

TABLE

S. No. Goods or class of PCT Rate

goods Heading
(1) (2) (3) (4)
1. All imported goods Respective 3% ad
subject to exclusions Heading valorem
as in 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
importers 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,—
1018
[(i) Raw materials and intermediary goods imported by a
manufacturer for in-house consumption 1019[excluding
compressor scrap (PCT heading 7204.4940), motor scrap
(PCT heading 7204.4990) and copper cable cutting scrap
(PCT heading 7404.0090)]

1017
Twelfth Schedule inserted by Finance Act, 2019.
1018
Clause (i) substituted by Finance Act, 2020.
1019
Expression added by Finance Act, 2022.

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 Sales Tax Act, 1990

(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 1020[(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; 1021[***]
(viii) Silver, in un-worked condition;
(ix) 1022[The goods as specified in the Third Schedule on which
tax is paid on retail price basis.1023[;and
1024
[(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.
1025
[(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]

1020
Expression inserted by Finance Act, 2024.
1021
The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020
1022
Clause (ix) inserted vide SRO 1321(I)/2019 dated 08 th November, 2019.
1023
The word “and” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
1024
Clause “(x)” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020
1025
New clauses inserted by Finance Act, 2021.

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 Sales Tax Act, 1990

(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.
1026
[“(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.”]
(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.]
1027[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. Product Production criteria

No.

1026
Clause (4) substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 the substituted clause read 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.”
1027
New Thirteenth Schedule inserted by Finance Act, 2021.

249
 Sales Tax Act, 1990

(1) (2) (3)

1. Steel billets and ingots One metric ton per 700 kwh of
electricity consumed
2. Steel bars and other re- One metric ton per 110 kwh of
rolled long profiles of electricity consumed
steel
3. Ship plates and other re- 85% of the weight of the vessel
rollable scrap 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;

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 Sales Tax Act, 1990

(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;

(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.]

*********
PCPPI—4310(19) FBR—19-09-2019—2000.

251