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, 2025
The amendments made through

Finance Act, 2025

have been shown in Red

1
 Sales Tax Act, 1990

Contents

Chapter I…………………………………………………………………...…….7
Preliminary………………………………………………………… ………..…7
1. Short title, extent and commencement……………………………..…...7
2. Definitions…………………………………………………… … ..........7
Chapter-II ............................................................................................... ………25
SCOPE AND PAYMENT OF TAX………………..…………………..............25
3. Scope of tax. .............................................................................. ..……..25
3A. Omitted ...................................................................................... …..…..30
3AA. Omitted ...................................................................................... ..……..30
3AAA. Omitted ...................................................................................... …..…..30
3B. Collection of excess sales tax etc. ............................................. ..……..30
4. Zero rating. ................................................................................ ..……..31
5. Change in the rate of tax............................................................ ..……..31
6. Time and manner of payment. ................................................... …..…..32
7. Determination of tax liability. ................................................... ……....33
7A. Levy and collection of tax on specified goods on value addition...........35
8. Tax credit not allowed. .............................................................. ……....35
8A. Joint and several liability of registered persons in supply chain where tax
unpaid.-………………………………………………….......................37
8B. Adjustable input tax................................................................... ……....38
9. Debit and credit note. ................................................................ …..…..39
10. Refund of input tax. ................................................................... ……....39
11. Omitted............... ....................................................................... …..… .40
11A. Short paid amounts recoverable without notice.– ..................... ……....40
11B. Limitation for issuing orders in certain cases.— ....................... ……....40
11C. Power of tax authorities to modify orders, etc........................... ……....41
11D. Best judgment Assessment. — ................................................. ……....41
11E. Assessment of tax and recovery of tax not levied or short levied or
erroneously refunded.-…………………………………………………42
11F. Failure to withhold sales tax.—…………………………………..……42
11G. Limitation for assessment.—………………………………….……….43
12. Omitted…..…………………………………………………………….43
13. Exemption.― ............................................................................ ……....43
Chapter-III .............................................................................................. ……....45
REGISTRATION ................................................................................... ………45
14. Registration. – ........................................................................... ……....45
14A. Repealed.– ................................................................................. ……....46
14AB. Discontinuance of gas and electricity connections. – ................ ……....46
14AC. Bar on operations of bank accounts.-.…………………………………46
14AD. Bar on transfer of immovable property.-………………………………47
14AE. Other measures for non-registration.-.…………………………………48
15. Omitted ...................................................................................... ……....49
16. Omitted ...................................................................................... ..……..49
17. Omitted ...................................................................................... ..……..49

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 Sales Tax Act, 1990

18. Omitted ...................................................................................... …..…..49

19. Omitted ...................................................................................... ..……..49
20. Omitted ...................................................................................... ............49
21. De-registration, blacklisting and suspension of registration…………..49
21A. Active taxpayers list .................................................................. ………50
Chapter-IV .............................................................................................. ……....50
BOOK KEEPING AND INVOICING REQUIREMENTS ................... ……....50
22. Records. ..................................................................................... ……....50
23. Tax Invoices.- ............................................................................ ……....52
24. Retention of record and documents for six years.- .................... ……....54
25. Audit of sales tax affairs.- ......................................................... ……....54
25A. Drawing of samples.- ................................................................ ……....56
25AA. Transaction between Associates ................................................ ……....56
Chapter-V ............................................................................................... ………57
RETURNS .............................................................................................. ……....57
26. Return. ....................................................................................... ……....57
26A. Omitted ...................................................................................... ……....59
26AA. Omitted ....................................................................................... ……....59
26AB. Extension of time for furnishing returns ..................................... ……....59
27. Special Returns. ......................................................................... ……....60
28. Final Return. .............................................................................. ……....60
29. Return deemed to have been made. ........................................... ……....60
Chapter-VI .............................................................................................. ……....61
APPOINTMENT OF OFFICER OF SALES TAX & THEIR POWERS………61
30. Appointment of Authorities....................................................... ……....61
30A. Directorate General, (Intelligence and Investigation) Inland
Revenue…………….. ............................................................... .......….62
30AB. Tax Fraud Investigation Wing Inland Revenue …………….……….…62
30B. Directorate General Internal Audit. ........................................... ……....63
30C. Inland Revenue Services Academy. .......................................... ……....64
30CA. Directorate General of Digital Initiatives……………………….……...64
30D. Directorate General of Valuation. ............................................. ………64
30DD. Directorate of Post Clearance Audit . ......................................... ………64
30DDD. Directorate General of Input Output Co-efficient Organization……...64
30DDDA.Directorate-General of law……………………………………….….64
30E. Powers and Functions of Directorate etc. .................................. ………64
31. Powers. ...................................................................................... ………64
32. Delegation of powers................................................................. ………65
32A. Audit by Special Audit Panels .................................................. ………65
32AA. Omitted. ..................................................................................... ………66
32B. Appointment of experts and auditors…………………………………..66
Chapter-VII ............................................................................................ ………67
OFFENCES, PENALTES AND PUNISHMENT .................................. ………67
33. Offences,Penalties and Punishment........................................... ………67
33A. Omitted ...................................................................................... ………78
34. Default Surcharge. ..................................................................... ………79
34A. Exemption from penalty and default surcharge......................... ………80

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 Sales Tax Act, 1990

35. Omitted. ..................................................................................... ………80

35A. Omitted. ..................................................................................... ………80
36. Omitted. ..................................................................................... ………80
37. Power to summon persons to give evidence and produce documents in
inquiries under the Act. ............................................................. ………80
37A. Power to inquire,investigate offences warranting prosecution under this
Act and Arrest of a person ......................................................... ………81
37B. Procedure to be followed on arrest of a person. ........................ ………83
37C. Special Judges ........................................................................... ………86
37D. Cognizance of Offences by Special Judges ............................... ………86
37E. Special Judge, etc. to have exclusive Jurisdiction ..................... ………87
37F. Provisions of Code of Criminal Procedure, 1898, to apply……............87
37G. Transfer of cases ........................................................................ ………87
37H. Place of Sittings ......................................................................... ………88
37I. Appeal to the High Court .......................................................... ………88
38. Authorised officers to have access to premises, stocks, accounts and
records ....................................................................................... ………88
38A. Power to call for information. ................................................... ………89
38B. Obligation to produce documents and provide information…………...89
39. Omitted ...................................................................................... ………90
40. Searches under warrant ............................................................. ………90
40A. Omitted. ..................................................................................... ………91
40B. Posting of Inland Revenue Officer. ........................................... ………91
40C. Monitoring of Tracking by Electronic or other means............................91
40D. Provisions relating to goods supplied from tax-exempt areas.-..............91
40E. Licensing of brand name.-.......................................................................92
41. Omitted… .................................................................................. …….. .92
42. Omitted. ..................................................................................... ………92
Chapter-VIII ........................................................................................... ………93
APPEALS............................................................................................... ………93
43. Omitted. ..................................................................................... ………93
43A. Omitted………………………....……………………………..……….93
44. Omitted. ..................................................................................... …..…..93
45. Omitted. ..................................................................................... ……....93
45A. Power of the Board and Commissioner to call for records………..…...93
45B. Appeals. ..................................................................................... ..……..94
46. Appeals to Appellate Tribunal................................................... ………96
47. Reference to the High Court.................................................………..…96
47A. Alternative dispute resolution. .................................................. ……....97
47AB. Saving. .............................................................................. ......................97
Chapter-IX .............................................................................................. ……....98
RECOVERY OF ARREARS ................................................................. ……....98
48. Recovery of arrears of tax.- ....................................................... ……....98
Chapter-X ............................................................................................... ……....99
MISCELLANEOUS ............................................................................... ..……..99
49. Sales of taxable activity or transfer of ownership.--.................. ..……..99
49A. Liquidators. ............................................................................... ……..100

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 Sales Tax Act, 1990

50. Power to make rules. ................................................................. ……..101

50A. Computerized system. ............................................................... ……..101
50B. Electronic scrutiny and intimation……………………………............102
51. Bar of suits, prosecution and other legal proceedings. .............. ……..102
52. Appearance by authorised representative. ................................. ……..102
52A. e-intermediaries to be appointed. .............................................. ……..103
53. Estate of deceased person. ......................................................... ……..103
54. Estate in bankruptcy. ................................................................. ……..103
55. Removal of difficulties. ............................................................. ……..104
56. Service of order, decisions, etc. ................................................. ……..104
56A. Agreement for the exchange of information………………………….105
56AB. Real time access to information and databases……………………….106
56B. Disclosure of information by a public servant ..................... …….. ….107
56C. Prize schemes to promote tax culture…………………………………107
57. Rectification of Mistake ............................................................ ……..107
58. Liability for payment of tax in the case of private companies or business
enterprises.................................................................................. ……..108
58A. Representatives.......................................................................... ……..108
58B. Liability and obligations of representatives. ............................. ……..110
58C. Inspection of audit firm………………………………………………111
59. Tax paid on stocks acquired before registration ........................ ……..111
60. Powers to deliver certain goods without payment of tax........... ……..112
61. Repayment of tax in certain cases. ............................................ ……..112
61A. Repayment of tax to persons registered in Azad Jammu and Kashmir.
................................................................................................... ……..112
62. Drawback allowable on re-export.-- .......................................... ……..112
63. Drawback on goods taken into use between importation and re-
exportation. ................................................................................ ……..113
64. Power to declare what goods are identifiable and to prohibit drawback in
case of specified foreign territory .............................................. ……..113
65. Exemption of tax not levied or short levied as a result of general practice
................................................................................................... ……..113
66. Refund to be claimed within one year. ...................................... ……..114
67. Delayed Refund. ........................................................................ ……..114
67A. Payment of refund through sales tax refund bonds.. ................. ……..115
68. Liability of the registered person for the acts of his agent. ....... ……..116
69. Issuance of duplicate of sales tax documents. ........................... ……..116
70. Computation of limitation period. ............................................. ……..116
71. Special procedure. ..................................................................... ……..116
72. Officers of Sales Tax to follow Board's orders, etc. .................. ……..117
72A. Reference to the authorities .................................................. ………...117
72B. Selection of audit by the Board ............................................ ………...117
72C. Reward to Inland Revenue Officers and Officials................ ………...118
72D. Reward to whistleblowers .................................................... ………...118
73. Certain transactions not admissible. .......................................... ……..118
74. Condonation of time-limit. ........................................................ ……..120
74A. Validation. ................................................................................. ……..121

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 Sales Tax Act, 1990

75. Application of the provisions of Act IV of 1969 to Sales Tax……….121

76. Fee and service charges. ............................................................ ……..121
77. Uniform……………. ........................................................... …….…..122
SCHEDULES .................................................................................... ………...123
THE FIRST SCHEDULE (omitted)…. .................................................. ……..123
THE SECOND SCHEDULE (omitted).................................................. ……..123
THE THIRD SCHEDULE ..................................................................... ……..123
THE FOURTH SCHEDULE (omitted).................................................. ……..126
THE FIFTH SCHEDULE ...................................................................... ……..127
THE SIXTH SCHEDULE...................................................................... ……..131
THE SEVENTH SCHEDULE (omitted) .......................................... ………...185
THE EIGHT SCHEDULE ................................................................ ………...185
THE NINTH SCHEDULE ................................................................ ………...196
THE TENTH SCHEDULE ............................................................... ………...198
THE ELEVENTH SCHEDULE........................................................ ………...200
THE TWELFTH SCHEDULE……………......................................................205
THE THIRTEENTH SCHEDULE.................................................... ………...207

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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 the

7

subject or context,--

[“(1) “abettor” means a person who intentionally abets or connives in tax

8

fraud as defined in clause (37) of section 2 or in the commission of any offence

warranting prosecution under this Act, and includes a person who,–

(a) prepares, or causes to be prepared with authorization of the registered

person, invoices for false claim of input tax adjustment; or

1 For Statements of Objects and Reasons see Gazette of Pakistan, dated the 30th 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 Clause (1) substituted by Finance Act, 2025.

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 Sales Tax Act, 1990

(b) allows use of bank account held or operated by him for abetting tax
fraud or other offence warranting prosecution under this Act or
unauthorizedly or illegally maintains or operates business bank account
in other registered person’s name.”;

(1A) “active taxpayer” means a registered person who does not fall in
9

any of the following categories, namely:-

(a) who is blacklisted or whose registration is suspended 10[***] 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 11[quarterly] or an annual withholding tax
statement under section 165 of the Income Tax Ordinance, 2001;

(1B) “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 12[officer of Inland Revenue]

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

[(2A) “arrears”, in relation to a person, means, on any day, the sales tax
13

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 meaning as

14

defined in section 85 of the Income Tax Ordinance, 2001(XLIX of 2001);]

9 The existing clause (1) and (1A) renumbered as clause (1A) and (1B), respectively by Finance Act,2025.
10 The words “or is blocked” omitted by Finance Act, 2020.
11
The word substituted by Finance Act, 2020.
12
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.
13
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.
14 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 family,

15

any artificial juridical person and anybody of persons formed under a foreign law,
but does not include a company;]
16
[(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 clause (8)
17

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

[“(4A) 18
“Cargo Tracking System” means a digital system notified
by the Board for electronic monitoring and tracking of goods transported within or
across the territory of Pakistan, for the purpose of tax enforcement, compliance
and prevention of tax evasion;”;]

[(4AA)] 19
“Chief Commissioner” means a person appointed as the
chief Commissioner Inland Revenue under section 30;]

[(4AAA)] “Commissioner (Appeals)” means Commissioner of

Inland Revenue (Appeals) appointed under section 30;]

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

20

appointed under section 30;]

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

21

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

22
[(5AA) “company” means –

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

1984);

(b) a body corporate formed by or under any law in force in Pakistan;

(c) a modaraba;
(d) a body incorporated by or under the law of a country outside Pakistan
relating to incorporation of companies;

15
Clause (3A) inserted by Finance Act, 2008.
16
Clause (3A) re-numbered as (3AA). Earlier it was inserted by Finance Act, 2004.
17
Clause (4) substituted by Finance Act, 2024. Earlier it was substituted by Finance Act, 2008.
18 Clause (4A) inserted by Finance Act, 2025.
19
The existing clause (4A) and (4AA) renumbered as clause (4AA) and (4AAA), respectively by Finance Act,2025. Earlier 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
20
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.
21
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.
22
Clause (5AA) inserted by Finance Act, 2008.

9
 Sales Tax Act, 1990

(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);
23
[(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 fulfils

24

each of following conditions, namely:−

(a) does not have an industrial gas or electricity connection;

(b) is located in a residential area;

(c) does not have a total labour force of more than ten workers; and

(d) annual turnover from all supplies does not exceed 25[eight] million
rupees;]
26
[(5ABA) “courier” means any entity engaged in the delivery of goods and
collection of cash on behalf of a seller including logistic and ride-hailing
services;”;]

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

26

matching of sales tax returns, also referred to as COMPUTERISED RISK-BASED

EVALUATION of SALES TAX;]

(6) “Customs Act” means the Customs Act, 1969 (IV of 1969), and
where appropriate all rules and notifications made under that Act;
27
[(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

9

section 34;]

23
Clause (5AA) re-numbered as (5AAA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006.
24
Clause (5AB) substituted by Finance Act, 2019.
25
Word “eight” substituted by Finance (Supplementary) Act, 2022.
26 Clause (5ABA) inserted by Finance Act, 2025.
26
CREST 5AC inserted by Finance Act, 2013.
27
Clause (6A) inserted by Tax Laws (Amendments) Ordinance, 1999.
9
Clause (6B) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2005.

10
 Sales Tax Act, 1990

(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 10[under section

26], [ [...] 13[....] means the 14[15th] day of the month following the end of the tax
11 12

period, or such other date as the 15[Board] may, by notification in the official
Gazette, specify 16[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 under

17

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;]
18
[(9AA) ***]

(9B) “e-bilty” means a digital transport document generated through the

19

Cargo Tracking System as prescribed by the Board, to accompany goods during

their movement.”;
20
(9C) “e-commerce” means sale or purchase of goods conducted over
computer networks by methods specifically designed for the purpose of receiving
or placing of orders either through websites, mobile applications or online
marketplace having digital ordering features by using mobile phones, automated
computer-to-computer ordering system or any similar device;”;

(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;

10
The words and figure inserted by Finance Act, 1998.
11
The words and figure inserted by Tax Laws Amendment Ordinance, 2000, dated 24 th May, 2000.
12
Comma and words etc. “, sub-section (6) of section 26A” omitted by Finance Act, 2004.
13
The expression “and section 26AA omitted by Finance, Act, 2016.
14
Substituted for “20th” by Finance Act, 1998
15
Substituted for “Federal Government” by Finance Act, 2008
16
Expression inserted through Finance Act, 2016.
17
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.
18
Clause (9AA) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001.
19
Clause (9B) inserted by Finance Act, 2025
20
Clause (9C) inserted by Finance Act, 2025

11
 Sales Tax Act, 1990

[(11A) “FBR Refund Settlement Company 22[10a] Limited” means the

21

company with this name as incorporated under the 23[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 share
24 10

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

(12) “goods” include 25[***] 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 150 of

26

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;

(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 27[ ... ] imports any goods into
Pakistan;

21
Existing clause re-numbered as clause (11B) and new clause (11A) inserted by Finance Supplementary (Second Amendment) Act, 2019
22
The word (Pvt) omitted by Finance Act, 2019.
23
Words substituted vide Finance Act, 2019
24
Clause (11A) inserted by Finance Act, 2008.
25
Expression omitted by Finance Act, 2023
26
New clause 12A inserted through Tax Laws (Amendment) Act, 2020 dated 30-3-2020.
27
Word “lawfully” omitted by Finance Act, 2008

12
 Sales Tax Act, 1990

28
[(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; 29[30 ]

(d) […….] 32[Provincial Sales Tax levied on services rendered or

31

provided to the person 33[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 Rate

34

prevalent on the first day of each quarter of the financial year;]

35
[(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 Board to

36

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;

28
Clause (14) substituted by Finance Act, 2008.
29
Word “and” added at the end of clause through Finance, Act, 2016.
30
Word “and” omitted through Tax Laws (Amendment) Ordinance, 2016.
31
Expression omitted through Finance, Act, 2016.
32
Expression re-inserted through Tax Laws (Amendment) Ordinance, 2016 having affect from 01 st day of July, 2016..
33
Expression inserted by Finance Act, 2024.
34
Clause (14A) inserted by Finance Act, 2009.
35
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.
36
New clause inserted by Finance Act, 2024.

13
 Sales Tax Act, 1990

(b) process of printing, publishing, lithography and engraving; and

(c) process and operations of assembling, mixing, cutting, diluting,

bottling, packaging, repacking or preparation of goods in any other
manner;

(17) “manufacturer” or “producer” means a person who engages,

whether exclusively or not, in the production or manufacture of goods whether or
not the raw material of which the goods are produced or manufactured are owned
by him; and shall include –

(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 37[:]
38
[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

39

section 30;]

[(18A) “online marketplace” online marketplace” means online

40

interfaces that facilitate, for a fee, the direct interaction between multiple buyers
and multiple sellers via digital orders for supply of goods, with or without the
platform taking economic ownership of the goods that are being sold;”;

(19) “open market price” means the consideration in money which that
supply or a similar supply would generally fetch in an open market;
41
[(20) “output tax”, in relation to a registered person, means –

37
Substituted for the semi-colon by Finance Ordinance, 2000
38
Proviso inserted by Finance Ordinance, 2000.
39
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.
40
Clause (18A) substituted by Finance Act, 2025.
41
Clause (20) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2007.

14
 Sales Tax Act, 1990

(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;
42
[(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);]

(20A) “payment intermediary” means a banking company, any financial

43

institution including a licensed foreign exchange company or payment gateway

that facilitate the transfer of funds or payment instructions between two or more
parties to enable, process, route, or settle payments with respect to goods in a
financial transaction, without being the ultimate source or recipient of the
payment;”;

44
[(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

(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 or
45

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;]

42 Clause (c) substituted by Finance Act, 2020.

43 Clause (20A) inserted by Finance Act, 2025.
44 Clause (21) substituted by Finance Act, 2008.
45 Clause (22A) inserted by Finance Act, 2008.

15
 Sales Tax Act, 1990

(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 46[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 liable to

47

be registered under this Act:

Provided that a person liable to be registered but not registered under this
48
Act [...] 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;]
49
[(26 ) ***]

(27) “retail price”, with reference to the Third Schedule, means the price
fixed by the manufacturer 50[or importer, in case of imported goods] 51[...],
inclusive of all 52[duties], charges and taxes (other than sales tax 53[...]) at which
any particular brand or variety of any article 54[is] sold to the general body of
consumers or, if more than one such price is so fixed for the same brand or variety,
the highest of such price 55[:].
56
[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 57[:]

Provided further that the reduction in price on account of chilling charges or

any other similar charges in case of aerated water, beverages, mineral water, or
fruit juices shall not be more than five percent of the price inclusive of sales tax,
federal excise duty and all taxes other than income tax on which such goods are
actually sold to the general body of consumers:

Provided also that, where the Board deems it necessary it may, by

notification in the official gazette, fix the retail price of goods specified in the third
schedule:

46
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.
47
Clause (25) substituted by Finance Ordinance, 2002.
48
Words “shall remain liable to further tax under sub-section (1A) of section 3 and” omitted by Finance Act, 2004.
49
Clause (26) omitted by Finance Ordinance, 2002.
50
The expression inserted vide Finance Act, 2019.
51
Words “or the importer” omitted by Finance Act, 2005. Earlier these were inserted by Finance Act, 2003.
52
Words and comma inserted by Finance Act, 2007.
53
Words “and octroi” omitted by Finance Act, 1998.
54
for the words “should be”, the word “is” substituted by Finance Act,2025;
55
The “semicolon” has been substituted by” colon” in Finance Act, 2014
56
Inserted by Finance Act 2014.
57
For Full stop at the end a colon is substituted and new provisos are added by Finance Act, 2025.

16
 Sales Tax Act, 1990

Provided further also that, in case of imported goods specified in the Third
Schedule, the retail price shall not be less than one hundred thirty percent of the
value determined under section 25 of the Customs Act, 1969 (IV of 1969),
including the amount of customs duties and federal excise duty levied thereon.

(28) “retailer” means a person 58[***] supplying goods to general public

for the purpose of consumption 59[:].
60
[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 61[***].]
62
[(28A) ***]

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

of this Act;
63
[(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 64[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;]

[(29AA) “sales tax account” means an account representing the double entry
65

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 66[resembles] the
characteristics, quantity, components and materials of the aforementioned goods;
67
[(31A) “special audit” means an audit conducted under section 32A;]

58
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.
59
Substituted for the semi-colon by Finance Act, 2003.
60
Proviso inserted by Finance Act, 2003.
61
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.
62
Clause (28A) omitted by Finance Act, 2008. Earlier it was inserted by Finance Act, 1997.
63
Clause (29A) inserted by Finance Act, 2008.
64
Words inserted by Finance Act, 2022.
65
Clause (29A) renumbered as (29AA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006.
66
Substituted for “resemble” by Finance Act, 2008.
67
Clause (31A) inserted by Finance Act, 1998.

17
 Sales Tax Act, 1990

(32) “Special Judge” means the Special Judge appointed under Section
68
[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 of

69

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;

70
[***]
(c) possession of taxable goods held immediately before a person ceases
to be a registered person 71[; 72[***]]
73
[(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
74
[; and]
75
[***]

Provided that the 76[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 buyers

77

and sellers from the stage of first purchase or import to the stage of final supply;]
78
[(34)] tax”, unless the context requires otherwise, means sales tax;]

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

79

person whether or not for profit, and includes – –

(a) an activity carried on in the form of a business, trade or manufacture;

68
Words etc. inserted by Finance Act, 2010 w.e.f. June 5, 2010.
69
Clause (33) substituted by Finance Act, 2008.
70
Word “and” omitted by Finance Act, 2015.
71
Semi-colon and word “and” substituted for colon by Finance Act, 2015. Semi-colon and word “and” substituted for colon by Finance Act, 2015.
72
Word “and” omitted by Finance Act, 2022.
73
Clause (d) added by Finance Act, 2015.
74
Semi colon and the word “and” substituted by Finance Act, 2022.
75
Sub-clause (e) omitted by Finance Act, 2023
76
The words “Federal Government” substituted with the expression vide Finance Act, 2019.
77
Clause (33A) inserted by Finance Act, 2013.
78
Clause (34) substituted by Finance Act, 2008.
79
Clause (35) substituted by Finance Act, 2008.

18
 Sales Tax Act, 1990

(b) an activity that involves the supply of goods, the rendering or

providing of services, or both to another person;

(c) a one-off adventure or concern in the nature of a trade; and

(d) anything done or undertaken during the commencement or

termination of the economic activity,

but does not include –

(a) the activities of an employee providing services in that capacity to an

employer;

(b) an activity carried on by an individual as a private recreational

pursuit or hobby; and

(c) an activity carried on by a person other than an individual which, if

carried on by an individual, would fall within sub-clause (b).]

(36) “tax fraction” means the amount worked out in accordance with the
following formula: –

a
100 + a

('a' is the rate of tax specified in section 3);

[(37) “tax fraud” means knowingly, intentionally, or dishonestly doing

80

any act or abetting any action to cause loss of tax under this Act, including,-

(a) using or preparing false, forged, and fictitious documents,

including returns, statements, annexures, and invoices;

(b) false claim of input tax credit based on fictitious transactions;

(c) issuance of any tax invoice without supply of goods;

(d) tampering with or destroying of any material evidence or

documents required to be maintained under this Act or the rules
made thereunder;

(e) generating fake input through manipulation of return filing system

of the Board and making fake entries in the sales tax returns or in
the annexures;

80
Clause (37) substituted by Finance Act, 2025.

19
 Sales Tax Act, 1990

(f) making fictitious compliance of section 73, including routing of

payments back to the registered person, or for the benefit of the
registered person, through a bank account held by a supplier or a
purported supplier;

(g) suppression of supplies that are chargeable to tax under this Act;

(h) making taxable supplies of goods without issuing any tax invoice;
(i) suppression and nonpayment of withholding tax in the prescribed
manner beyond a period of three months from due date of payment
of tax;

(j) acquisition, possession, transportation, disposal or in any way

removing, depositing, keeping, concealing, supplying, or
purchasing or in any other manner dealing with, any goods in
respect of which there are reasons to believe that these are liable
to confiscation under this Act or the rules made thereunder; or

(k) making of taxable supplies without getting registration under this

Act.
81
[(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 82[...] 83[by
an importer, manufacturer, wholesaler (including dealer), distributor or retailer]
other than a supply of goods which is exempt under section 13 and includes a
supply of goods chargeable to tax at the rate of zero per cent under section 4;
84
[(42) ***]

(43) “tax period” means a period of one month or such other period as the
85
[Board, with the approval of the Federal Minister-in-charge,] may 86[, ] by
notification in the official Gazette, specify;

81
Clause (38) omitted by Finance Act, 2004.
82
The words “In Pakistan” omitted by Finance Act, 2003.
83
The words and commas inserted by Finance Act, 1998.
84
Clause (42) omitted by Finance Act, 1997.
85 85
The words “Federal Government” substituted with the expression vide Finance Act, 2019.
86
Substituted for semi-colon by Finance Act, 2008

20
 Sales Tax Act, 1990

[“(43A) 88[“Tier-1 retailer” means a retailer falling in any one or more of

87

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 89[twelve]
hundred thousand; 90[ ]

(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”;] 91[ ]
92
[***]
93
[(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; 94[***]
95
[(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
96
[***]
97
[(h) any other person or class of persons as prescribed by the Board.]
98
[(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 99[or the time when any payment is received

87
Clause (43A) inserted through Finance Act, 2017
88
Expression substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 substituted expression read as under:
“Tier-1 retailers means”
89
Word “six” substituted by “twelve” though Tax Laws (Amendment) Act, 2020, dated 30-3-2020
90
The word “and” omitted vide Finance Act, 2019.
91
The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
92
Sub-clause (e) omitted by Finance Act, 2023
93
New clause (f) inserted by Finance Act, 2021.
94
Word “and” omitted by Finance (Supplementary) Act, 2022.
95
New clause (g) inserted by Finance (Supplementary) Act, 2022.
96
Sub-clause (ga) omitted by Finance Act, 2023
97
Existing clause (f) re-numbered as clause (h) by Finance Act, 2021.
98
Clause (44) (44 A) and (44 AA) substituted for clause (44) by Finance Act, 2008.
99
Expression added by Finance Act, 2024.

21
 Sales Tax Act, 1990

by the supplier in respect of that supply, whichever is earlier]

100
[****];

(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;
101
[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 ;]

(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;]
102
[(45) ***]

(46) “value of supply” means:--

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

all Federal and Provincial duties 103[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; 104[ ... ]

100
Words omitted by Finance Act, 2021.
101
Proviso added by Finance Act, 2013.
102
Clause (45) omitted by Finance Act, 2004.
103
Words inserted by Finance Act, 1999.
104
Words “and” omitted by Finance Ordinance, 2001.

22
 Sales Tax Act, 1990

(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; 105[and]
106
[(iii) in case a taxable supply is made to a consumer from general
public on installment basis on a price inclusive of mark up or
surcharge rendering it higher than open market price, the value
of supply shall mean the open market price of the supply
excluding the amount of tax.]

(b) in case of trade discounts, the discounted price excluding the amount
of tax; 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 107[excluding those as specified in the
Third Schedule], the value determined under section 25 108[...] of the
Customs Act, including the amount of customs-duties and
109
[federal] excise duty levied thereon; 110[...]

(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 111[Inland Revenue] constituted by the
112
[Commissioner] 113[;] 114[ ]
115
[(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;]

105
Word inserted by Finance Ordinance, 2001.
106
Sub-clause (iii) inserted by Finance Ordinance, 2001.
107
The expression inserted vide Finance Act, 2019.
108
Words etc. “or 25B” omitted by Finance Act, 2004.
109
Word substituted by Finance Act, 2024.
110
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.
111
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.
112
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.
113
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.
114
The word “and” omitted vide Finance Act, 2019.
115
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.

23
 Sales Tax Act, 1990
116
[(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.]
117
[(h) in case of supply of electricity by an independent power producer
118
[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; 119[***]

(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; 120[:]

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 121[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.]
122
[Provided] that, where the Board deems it necessary it may, by
notification in the official Gazette, fix the value of any imported goods 123[,
including those as specified in the Third Schedule,] or taxable supplies or class of
supplies and for that purpose fix different values for different classes or description
of same type of imported goods or supplies:

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;]

116
Sub-Clause (g) inserted by Finance Act, 1997.
117
Clauses (h) and (i) added by Finance Act, 2019.
118
The words inserted by Finance Act, 2020, shall be deemed to have been inserted with effect from 1 st July, 2019.
119
The word “and” omitted by Finance Act, 2020, the word “and” and “new clause j” inserted by Finance Act, 2020.
120
For expression “and” expression “:” substituted and thereafter Explanation inserted by Finance Act, 2022.
121
Expression inserted by Tax Laws (Second Amendment) Ordinance, 2022.
122
Provisos substituted by Finance Act, 2006.
123
Expression inserted by Finance Act, 2024.

24
 Sales Tax Act, 1990

[(46A) “whistleblower” means whistleblower as defined in section 72D of

124

the Sales Tax Act, 1990;]

(47) “wholesaler” 125[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 126[a person supplying taxable goods to 127[a person 128[who
deducts income tax at source under the Income Tax Ordinance, 2001 (XLIX of
2001)]] 129[...]; and

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

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

Chapter-II

SCOPE AND PAYMENT OF TAX

3. Scope of tax.– (1) Subject to the provisions of this Act, there shall be
charged, levied and paid a tax known as sales tax at the rate of 130[eighteen] per
cent of the value of–

(a) taxable supplies made 131[…] by a registered person in the course or

furtherance of any 132[taxable activity] carried on by him; and

(b) goods imported into Pakistan, 133[irrespective of their final

destination in territories of Pakistan].
134
[(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 135[or he is not an active taxpayer], there shall
be charged, levied and paid a further tax at the rate of 136[four] percent of the value
In addition to the rate specified in sub sections (1), (1B), (2), (5), 137[(6) and section
4] provided that the Federal Govt. may, by notification in the official Gazette,

124
Clause (46A) added by Finance Act, 2015.
125
Words inserted by Finance Act, 1997.
126
The words, brackets and figures inserted by Finance Act, 1998.
127
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.
128
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.
129
Comma and words “, and a person who in addition to making retail supplies is engaged in wholesale business” omitted by Finance Act, 2008.
130
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
131
Words “ in Pakistan” omitted by Finance Act, 2003
132
Words substituted by Finance Act, 1996.
133
Words inserted through Finance Act, 2017
134
Sub section (1A) inserted by Finance Act, 2013.
135
Words inserted by Finance Act, 2022.
136
For the word “three” the word “four” substituted by Finance Act, 2023
137
The expression inserted through Finance Act, 2017

25
 Sales Tax Act, 1990

specify the taxable supplies in respect of which the further tax shall not be charged,
levied and paid.]
138
[(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 139[or] manufacturing such
goods; or

(b) on fixed basis, from any person who is in a position to collect such
tax due to the nature of the business,

and different rates may be so prescribed for different regions or areas.]

140
[(2) Notwithstanding the provisions of sub-section (1): –

(a) taxable supplies 141[and import of goods] specified in the Third

Schedule shall be charged to tax at the rate of 142[eighteen] per cent
of the retail price 143[or in case such supplies 144[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 145[, or the importer, in case of imported goods,] on
each article, packet, container, package, cover or label, as the case
may be; 146[:]147[ ]
148
[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
149
[Provided 150[further] that the 151[Board], may, by notification
in the official Gazette, exclude any taxable supply 152[or import] from

138
Clause (1B) substituted vide Finance Act, 2019.
139
Word substituted by Finance Act, 2021.
140
Sub section (2) substituted by Finance Act, 2001
141
The expression inserted through Finance Act, 2019.
142
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
143
The expression inserted through Finance Act, 2017
144
The words “or imports” inserted vide Finance Act, 2019.
145
The expression inserted through Finance Act, 2019.
146
Substituted for “; and” by Finance Act, 2007.
147
The word ‘; and” omitted by Finance Act, 2014.
148
New proviso inserted by Finance (Supplementary) Act, 2023.
149
Proviso inserted by Finance Act, 2007.
150
Word inserted by Finance (Supplementary) Act, 2023.
151
Word “Board” substituted by Finance (Supplementary) Act, 2022.
152
The words “or imports” inserted through Finance Act, 2019.

26
 Sales Tax Act, 1990
153
the said Schedule or include any taxable supply [or import]
therein; 154[…]
155
(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]
156
[(b) the 157[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 goods158[…], of the person making the

supply,

(b) in the case of goods imported into Pakistan, of the person importing
the goods; 159and

(c) in the case of supply of digitally ordered taxable goods by online

market place, website and software application from within Pakistan
during the course of e-commerce, the liability to collect and pay tax
shall be of payment intermediary including a banking company, a
financial institution, licensed exchange company or payment
gateway in case the payment is made digitally and of the courier
delivering the goods where those are supplied on Cash on Delivery
(CoD) basis at the rates provided in the Eleventh Schedule.”;

160
[(3A) Notwithstanding anything contained in clause (a) of sub-section (3),
the 161[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.]
162
[(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

153
The words “or imports” inserted through Finance Act, 2019.
154
Word “and” omitted by Finance Bill, 2014.
155
Inserted by Finance Act, 2014
156
Clause (b) substituted by Finance Act, 2015.
157
Words “Federal Government” substituted by Finance Act, 2018.
158
Words “in Pakistan” omitted by Finance Act, 2003.
159
in sub-section (3), in clause (a) the word “and”, occurring at the end is omitted and in clause (b) for the full stop at the end, the semi colon and the
word “and” is substituted and thereafter the new clause (c) is inserted by Finance Act, 2025
160
Sub-section 3A inserted by Finance Act, 1998.
161
The expression inserted through Finance Act, 2019.
162
Inserted by Finance Act 2014

27
 Sales Tax Act, 1990

prescribed, and the liability to charge, collect and pay the tax shall be on the
persons specified therein.]
163
[(4) ***]
164
[(5) The 165[Federal Government] may, in addition to the tax levied under
sub-section (1) 166[…], 167[…] sub-section (2) and sub-section (4), levy and collect
168
[“tax at such extra rate or amount”] not exceeding 169[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.]
170
[(6) The Federal Government or 171[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.
172
[(7) The tax shall be withheld 11[***] at the rate as specified in the
Eleventh Schedule, by any person or class of persons 173[being purchaser of goods
or services 174[, 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 175[:]
176
[omitted]
177
(7A) The tax withheld as provided in the Eleventh Schedule by the
payment intermediary or the courier, as the case may be, shall be final
discharge of tax liability in respect of taxable supplies of digitally
ordered goods by;

(i) cottage industry as defined in clause (5AB) of section 2 of this

Act; and
(ii) retailers other than tier-I retailers

163
Sub section (4) omitted by Finance Act, 2008.
164
Sub section (5) inserted by Finance Act, 1999.
165
Words “Federal Government” substituted by Finance Act, 2018.
166
Word etc. “and (1 A)” omitted by finance Act, 2004.
167
Word etc. “clause (C) of” omitted by Finance Ordinance, 2002
168
Words substituted by Finance Act, 2013.
169
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
170
Sub section (6) inserted by Finance Ordinance 2001
171
Substituted for “Central Board of Revenue” by Finance Act, 2007
172
Sub-section (7) substituted by Finance Act, 2019.
173
The words omitted and the expression inserted by Finance Act, 2020.
174
Expression inserted by Finance Act, 2022.
175
Colon and proviso inserted by Finance Act, 2022.
176
Proviso to sub-section (7) omitted by Finance Act, 2025
177
Sub-section (7A) is inserted by Finance Act, 2025

28
 Sales Tax Act, 1990
178
[(8) Notwithstanding anything contained in any law or notification made
thereunder 179[, 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
180
[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.
181
[(9) Notwithstanding anything contained in sub-section (1), tax shall be
charged from retailers, other than those falling in Tier-1, through their monthly
electricity bills, at the rate of 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.]
182
[(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:
183
[****]
184
[omitted]
185
[(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.]

178
Sub-section 8 Inserted by Finance Act, 2014.
179
Comma and words inserted by Finance Act, 2015.
180
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
181
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.
182
Sub-section (9A) substituted through Finance Act, 2019.
183
First proviso omitted by Finance Act, 2021.
184
Proviso to sub-section (9A) omitted by Finance Act, 2025.
185
New sub-section inserted by Finance Act, 2021.

29
 Sales Tax Act, 1990
186
[(10) *** repealed]
187
[(11)***]
188
[(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.]

189
[3A. ***]
190
[3AA. ***]
191
[3AAA. ***]
192
[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 incidence of which has
been passed on to the consumer, shall pay the amount of tax or charge so collected
to the Federal Government.
193
[(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.]

186
Section 10 repealed which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021.
187
Sub-section (11) omitted by Finance Act, 2024.
188
New sub-section (12) added by Tax Laws (Second Amendment) Ordinance, 2022.
189
Section (3A) omitted by Finance Act, 2004.
190
Section (3AA) omitted by Finance Act, 2008.
191
Section (3AAA) omitted by Finance Act, 2002.
192
Old section (3A) renumbered as (3B) by Finance Act, 1996.
193
Sub-section (2) substituted by Finance Act, 2014.

30
 Sales Tax Act, 1990

4. Zero rating.– Notwithstanding the provisions of section 3

194
[except those of sub-section (1A)], 195[...] 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);
196
[(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]
197
[(d) omitted.]

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 198[***]
199
[; or]
200
(iii) [have been exported to a country specified by the Federal
Government, by Notification in the official Gazette 201[:]
202
[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 203[***] by a registered person shall be

charged to tax at such rate as is in force at the time of supply;

194
The expression inserted through Finance Act, 2017
195
Words “a Supply of” omitted by Finance Act, 2004.
196
Clause (c) substituted through Finance Act, 2019.
197
Clause (d) omitted by Finance Act, 2019.
198
Words omitted by Finance Act, 1999.
199
Substituted for “full stop” by Finance Act, 1991.
200
Added by Finance Act, 1991.
201
Substituted for “full stop” by Finance Act, 1996.
202
Proviso added by Finance Act, 1996.
203
Words “in Pakistan” omitted by Finance Act, 2003

31
 Sales Tax Act, 1990

(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 204[goods declaration] for clearance of such goods is
presented under section 104 of the Customs Act, 1969 (IV of
1969);

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
205
[goods declaration] 206[under section 104 of the Customs Act,] the tax shall be
charged at the rate as is in force on the date on which tax is actually paid.

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
207
[and the provisions of the said Act 208[including section 31A thereof], shall, so
far as they relate to collection, payment and enforcement 209[including recovery]
of tax under this Act on such goods where no specific provision exists in this Act,
apply,].
210
[(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
commitment made or understanding given whether in writing or otherwise, by any
government department or authority.]

204
Substituted for “bill of entry” by Finance Act, 2005
205
Substituted for “bill of entry” by Finance Act, 2005
206
Words, figure and comma inserted by the Finance Act, 1996.
207
The Words inserted in place of “IV of 1969” by Finance Act, 1996
208
The words inserted by Finance Act, 1998.
209
Words “including recovery” inserted by Finance Act, 2015.
210
Sub Section (1A) inserted by Sales Tax (amendment) Ordinance, 2002 dated June 07, 2002 and shall be deemed to have always been so inserted.

32
 Sales Tax Act, 1990

(2) The tax in respect of taxable supplies made 211[***] during a tax
period shall be paid by the registered person 212[by the date as prescribed in this
respect] 213[:]
214
[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.]
215
[(3) The tax due on taxable supplies 216[***] 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.]
217
[4. ***]
218
[(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.]

7. Determination of tax liability. – (1) 219

[Subject to the
220
provisions of [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
221
[, subject to the provisions of section 73,] be entitled to deduct input tax 222[paid
223
[or payable 224[during the tax period for the purpose of taxable supplies made,
or to be made, by him] from the output tax 225[excluding the amount of further tax

211
Words “ in Pakistan” omitted by Finance Act, 2013
212
Words substituted through Finance, Act, 2016.
213
Substituted for full stop by Finance Act, 1997
214
Proviso inserted by Finance Act, 1997
215
Sub Section III substituted by Finance Act, 1996.
216
Words “made in Pakistan” omitted by Finance Act, 2003.
217
Sub Section 4 omitted by Finance Act, 1996.
218
New sub-section (5) added by Finance Act, 2022.
219
Substituted for the word “ for by Finance Act, 2007
220
The word” section” substituted by the words and figure “section 8 and” in Finance Act 2014.
221
Comma and word etc, inserted by Finance Ordinance, 2001
222
Words inserted by Finance Act, 1996
223
Words inserted by Finance Act, 2004.
224
Words inserted by Finance Act, 1998.
225
Inserted by Finance Act 2014

33
 Sales Tax Act, 1990

under sub-section (1A) of section 3.] 226[ ] that is due from him in respect of that
tax period and to make such other adjustments as are specified in Section 9 227[:]
228
[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
229
[***], he holds a tax invoice 230[in his name and bearing his
registration number] in respect of such supply 231[, or in case of
supply of electricity or gas, a bill bearing his registration number and
the address where the connection is installed] 232[:]

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;
233
(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 79 234[, section
81] or section 104 of the Customs Act, 1969 (IV of 1969);]
235
(iii) [in case of goods purchased in auction, he holds a treasury challan,
236
[in his name and bearing his registration number,] showing
payment of sales tax;]
237
[(iv) ***]
238
[(3) Notwithstanding anything in sub-sections (1) and (2), 239[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.]

226
Words etc “ excluding the amount of tax” omitted by Finance Act, 2004
227
Substituted for the full stop by Finance Act, 2003
228
Proviso substituted by Finance Act, 2008.
229
Words “in Pakistan” omitted by Finance Act, 2003.
230
Words inserted by Finance Act, 2003.
231
The expression substituted through Finance Act, 2019.
232
A Colon substituted the semi colon & Proviso added through Finance, Act, 2016.
233
Clause (ii) substituted by Finance Act, 2003.
234
Expression “, section 81” inserted by Finance Act, 2015.
235
Clause (iii) inserted by Finance Ordinance, 2002
236
Comma and words inserted by Finance Act, 2004.
237
Clause (iv) omitted by Finance Act, 1997.
238
Sub Section (3) inserted by Finance Ordinance, 2002.
239
The expression substituted by Finance Act, 2019.

34
 Sales Tax Act, 1990
240
[(4) Notwithstanding anything contained in this Act or rules made there
under, the 241[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.]
242
[(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.]

[7A. Levy and collection of tax on specified goods on value addition. –

243
244
[(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.]
245
[(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 contained

246

in this Act, a registered person shall not be entitled to reclaim or deduct input tax
paid on –
247
[(a) the goods 248[or services] used or to be used for any purpose other
249
[***] for taxable supplies made or to be made by him;]

(b) any other goods or services which the 250[Federal Government] may,
by a notification in the official Gazette, specify251[;252[***]]

240
Sub Section (4) inserted by Finance Act, 2007.
241
Words “Federal Government” substituted by Finance Act, 2018.
242
New sub-section inserted by Finance Act, 2020.
243
Section (7A) inserted by Finance Act, 2003.
244
Renumbered by Finance Act, 2004
245
Sub-section (2) substituted vide Finance Act, 2019.
246
Section (8) substituted by Finance Act, 1996.
247
Clause (a) substituted by Sales Tax (amendment) Ordinance, 2001 dated February 07, 2001.
248
Words inserted by Finance Act, 2008.
249
Words “for the manufacture of production of manufacture goods or,” omitted by Finance Act, 2007.
250
Words “Federal Government” substituted by Finance Act, 2018.
251
Substituted for full stop by Finance Act, 1999
252
Word “and” omitted by Finance Act, 2004.

35
 Sales Tax Act, 1990

253 254
[(c)] [***] the goods under 255[sub-section] (5) of section 3 256[:]
257
[(ca) the goods 258[or services] in respect of which sales tax has not been
deposited in the Government treasury by the respective supplier;]
259
[(caa) purchases, in respect of which a discrepancy is indicated by CREST
or input tax of which is not verifiable in the supply chain;]
260
[(d) fake invoices; 261[***]

(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 [;]
262
[(f) goods and services not related to the taxable supplies made by the
registered person.]
263
[(g) goods and services acquired for personal or non-business
consumption;]
264
[(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 265[pre-
fabricated buildings and] such goods acquired for sale or re-sale or
for direct use in the production or manufacture of taxable goods;
266
[***]]
267
[(i) vehicles falling in Chapter 87 of the First Schedule to the Customs
Act, 1969 (IV of 1969), parts of such vehicles, electrical and gas
appliances, furniture furnishings, office equipment (excluding
electronic cash registers), but excluding such goods acquired for sale
or re-sale] 268[;]
269
[(j) services in respect of which input tax adjustment is barred under the
respective provincial sales tax law;

253
Clause (c) inserted by Finance Act, 1999.
254
Word “on” omitted by Finance Act, 2004.
255
Substituted for subsection (1A) and Finance Act, 2004.
256
Substituted for the full stop by Finance Act, 2004.
257
Clause (ca) inserted by Finance Act, 2006.
258
Words inserted by Finance Act, 2008.
259
Clause (caa) inserted by Finance Act, 2013
260
Clause (d) inserted by Finance Act, 2004.
261
The word “and “omitted by Finance Act 2014.
262
Inserted by Finance Act, 2014.
263
Inserted by Finance Act, 2014.
264
Inserted by Finance Act, 2014.
265
Words inserted by Finance Act, 2015.
266
Word “and” omitted by Finance Act, 2015.
267
Inserted by Finance Act, 2014.
268
Semi-colon substituted for full stop by Finance Act, 2015.
269
Clauses (j), (k) and (l) added by the Finance Act, 2015.

36
 Sales Tax Act, 1990

(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 270[or he has not paid amount of
tax due as indicated in his return; and
271
[(m) the input goods 272[or services] attributable to supplies made to un-
registered 273[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.
274
[(4) ***]
275
[(5) Notwithstanding anything contained in any other law for the time
being in force or any decision of any Court, for the purposes of this section, no
input tax credit shall be allowed to the persons who paid fixed tax under any
provisions of this Act as it existed at any time prior to the first day of December,
1998.]
276
[(6) Notwithstanding anything contained in any other law for the time
being in force or any provision of this Act, 277[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 278[***] under this Act.]
279
[(7) ***]
280
[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

270
Expression added through Finance Act, 2016.
271
Clause (m) substituted through Finance Act, 2019.
272
The words inserted by Finance Act, 2020.
273
Word “person” substituted by Finance Act, 2022.
274
Sub-Section (4) omitted by Finance Act, 1999.
275
Sub-section (5) inserted by Finance Act, 1999.
276
Sub-section (6) inserted by Sales Tax (Amendment) Ordinance, 2001 dated February 7, 2001.
277
The expression substituted by Finance Act, 2019.
278
Words “or enrolled” omitted by Finance Act, 2004.
279
Sub-section (7) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001.
280
Section 8A inserted by Finance Act, 2006.

37
 Sales Tax Act, 1990

subsequent supply of the goods supplied would go unpaid 281[, 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 282[:]]
283
[Provided that the Board may by notification in the official gazette,
exempt any transaction or transactions from the provisions of this section.]
284
[8B. Adjustable input tax.– (1) Notwithstanding anything contained
in this Act, in relation to a tax period, a registered person 285[***] shall not be
allowed to adjust input tax in excess of ninety per cent of the output tax for that tax
period:
286
[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 287[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. 288In order to limit input tax

281
Expression added by Finance Act, 2015.
282
Substituted for full stop by Finance Act, 2007.
283
Proviso inserted by Finance Act, 2007.
284
Section 8B inserted by Finance Act, 2007.
285
Words omitted by Finance Act, 2022.
286
Proviso substituted by Finance Act, 2011.
287
Words inserted by Finance Act, 2009.
288
In sub-section (4) after the full stop at the end the Expression added by Finance Act, 2025.

38
 Sales Tax Act, 1990

allowance, the Board may also use data based automated risk management system
to defer certain input tax or fix higher or lower limits of input tax adjustment:

Provided that the registered person may contest the action taken under this
sub-section by filing application and documents with the Commissioner
concerned, who shall decide the case within thirty days of such application.
289
[(4A) Notwithstanding anything contained in sub-sections (1), (2) and (3),
input tax allowed in case of locally manufactured electric vehicles subject to
reduced rate of tax under the Eighth Schedule shall be limited to the extent of
amount of output tax and no refund or carry forward of excess input tax shall be
allowed.]

(5) Any auditor found guilty of misconduct in furnishing the certificate

mentioned in sub-section (2) shall be referred to the Council for disciplinary action
under section 20D of Chartered Accountants, Ordinance, 1961 (X of 1961).]
290
[(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 291[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.
292
[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:
293
[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.]

289
New sub-section (4A) inserted by Finance Act, 2020.
290
New sub-section (6) inserted through Finance Act, 2019.
291
Expression substituted by Finance Act, 2021.
292
Section 10 substituted by Finance Act, 2007. Earlier it was also substituted by Finance Act, 1998 and Finance Act, 1996
293
Proviso substituted by Finance Act, 2008.

39
 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 294[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 295[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.]
296
[11. ***]
297
[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.]
298
[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;]

294
The expression substituted through Finance Act, 2019.
295
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.
296
Section 11 omitted by Finance Act, 2024.
297
Section 11A Substituted by Finance Act, 2006. Earlier it was inserted by Finance Ordinance, 2002.
298
Section 11B substituted by Finance Act, 2024.

40
 Sales Tax Act, 1990
299
[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.]
300
[11D. Best judgment Assessment. — (1) Where a person,
(a) fails to furnish a sales tax return in response to notice under
sub-section (2A) of section 26; or

(b) fails to produce before the officer of Inland Revenue not

below the rank of Assistant Commissioner under sections
25 or 38A, accounts, documents and records required, or
any other relevant document or evidence that may be
required by him, the officer of Inland Revenue not below
the rank of Assistant Commissioner may, after a notice to
show cause to such person, based on any available
information or material and to the best of his judgment,
make an assessment of tax payable or refund due and also
charge penalty and default surcharge.

(2) For the purposes of clause (b) of sub-section (1), the officer of
Inland Revenue may also disallow or reduce a registered person input tax on goods
if the registered person is unable, to provide invoice or other record or evidence of
the transaction or circumstances giving rise to such claim.
(3) Where a best judgment assessment has been made due to default
of clause (a) of sub-section (1) and the person files the return within sixty days of
issuance of order under this section 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

299
New section 11C inserted by Finance Act, 2020.
300
New sections 11D to 11G inserted by Finance Act, 2024.

41
 Sales Tax Act, 1990

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.
301
(5) Notwithstanding anything contained in this section, in case of
person who is liable to be registered under clause (25) of section 2 based on tax
withheld under section 236G of Income Tax Ordinance, 2001 (XLIX of 2001) and
does not furnish a return upon notice, an officer of inland revenue may assess sales
tax liability on the value addition on reasonable grounds including information
obtained from the purchase data under section 236G of Income Tax Ordinance,
2001 (XLIX of 2001).

11E. Assessment of tax and recovery of tax not levied or short levied
or erroneously refunded.-302(1) Where due to any reason, any tax or charge has
not been levied or short levied or where the officer of Inland Revenue not below
the rank of Assistant Commissioner suspects on the basis of audit or otherwise that
due to any reason a person has-

(a) not paid or short paid due sales tax;

(b) claimed input tax credit or refund which is not admissible;or

(c) has obtained an amount of refund not due,

the officer of Inland Revenue after issuing a show cause notice to the
person shall pass an order to determine and recover the amount of tax unpaid or
short paid, inadmissible input tax or refund, or unlawful refund obtained and shall
also impose penalty and default surcharge in accordance with sections 33 and 34:

Provided that this section shall not be applicable to the extent of

proceedings initiated under section 37A of the Act.

(2) For the purposes of sub-section (1), the officer of Inland Revenue may
also disallow input tax on goods or services if the taxpayer is unable, without
reasonable cause, to provide a receipt, or invoice or other record or evidence of the
transaction or circumstances giving rise to such claim.
(3) Where a tax or charge has not been levied under clause (a) of sub-
section (1), the amount of tax shall be recovered as tax fraction of the value of
supply.

11F. Failure to withhold sales tax.— Where any person, required to withhold
sales tax under sub-section (7) of section 3, fails to withhold the tax or having
withheld the tax fails to deposit the same in the prescribed manner, the officer of
Inland Revenue not below the rank of Assistant Commissioner shall after a notice
to such person to show cause pass an order to determine and recover the amount
in default and impose penalty and default surcharge under section 33 and 34.

301
Sub-section (5) inserted by Finance Act, 2025
302
Sub-section (1) substituted by Finance Act, 2025

42
 Sales Tax Act, 1990

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 303[eighty days] of issuance of show cause notice or within such
extended period as the Commissioner may, for reasons to be recorded, in writing
specify, provided that such extended period shall in no case exceed from ninety
days:

Provided that any period during which the proceedings are adjourned on
account of a stay order or Alternative Dispute Resolution proceedings or the time
taken through adjournment by the registered person not exceeding sixty days shall
be excluded from the computation of the period specified in this sub-section.

(3) For the purpose of sections 11D, 11E and 11F, the words “relevant
date” means—
(a) the time of payment of sales tax or charge as provided under
section 6;
(b) the time of payment for goods or services on which sales tax
was to be withheld under sub-section (7) of section 3; and
(c) in a case where sales tax or charge has been erroneously
refunded, the date of its refund.]
304
[12. ***]
305
[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 306[Federal Government], be exempt
from tax under this Act 307[.]
308
[***]

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

309
[(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

303
For the words “twenty days”, the words “eighty days” substituted by Finance Act, 2025
304
Section 12 omitted by Finance Act, 1996.
305
Section 13 substituted by Finance Act, 1996.
306
Substituted for “Board” by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999.
307
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.
308
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.
309
Clause (a) substituted through Finance Act, 2019.

43
 Sales Tax Act, 1990

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;]
310
[(b) ***]

(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) 311[***].]
312
[(4) ***]
313
[(5) ***]
314
[(6) The 315[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 316[:

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.]

310
Clause (b) omitted by Finance Act, 2015.
311
Expression “or, as the case may be, order made under clause (b) of that sub-section” omitted by Finance Act, 2015.
312
Sub-section (4) omitted by Finance Act, 2006.
313
Sub-section (5) omitted by Sales Tax (Amendment) Ordinance, 2000.
314
Sub-section (6) and sub-section (7) added by Finance Act, 2015.
315
Substituted for the words “Federal Government” through Finance Act, 2017
316
For the full stop a colon inserted and thereafter new provisos added through Finance Act, 2017

44
 Sales Tax Act, 1990

Chapter-III

REGISTRATION
317
[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.
318
(1A) Every person including a non-resident person except who is
running a cottage industry and the retailers who are required to pay sales tax
through electricity bills under sub-section (9) of section 3, selling digitally ordered
goods from within Pakistan through online marketplace, website or software
application as the case may be, shall apply in the prescribed form and in the
prescribed manner for registration.

(1B) Every online marketplace or a courier, involved in e-commerce by

supplying digitally ordered goods from within Pakistan shall not allow any person
to use their services to carry out e-commerce transactions unless it holds NTN and
in case sub-section (1A) of this section applies also holds sales tax registration.

(2) Persons not engaged in making of taxable supplies in Pakistan, if

required to be registered for making imports or exports, or under any provisions of
the Act, or any other Federal law, may apply for registration.
319
(2A) If a person, who is required to be registered under the Act, does
not apply for registration and the Commissioner Inland Revenue or any other

317
Section 14 substituted by Finance Act, 2015.
318
Sub-section (1A) and (1B) inserted by Finance Act, 2025
319
Sub-section (2A) inserted by Finance Act, 2025

45
 Sales Tax Act, 1990

officer, as may be authorized by the Board, after such inquiry as deemed

appropriate, having reason to believe that a person is liable to register, he shall
compulsorily register such person after providing an opportunity of being heard.

(3) The registration under this Act shall be regulated in such manner as
the Board may, by notification in the official Gazette, prescribe.]
320
[14A. *** repealed]
321
[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.]
322
14AC. Bar on operations of Bank Accounts. – (1) This section shall
apply–
(a) where the Commissioner has reasons to believe that a
person is engaged in supply of taxable goods without
having registration under this Act;

(b) the Commissioner has provided three consecutive

opportunities of being heard to the person to obtain
registration under this Act; and

(c) the person has failed to obtain registration.

(2) Notwithstanding anything contained in this Act or any other law

for the time being in force, the Commissioner shall have the powers to direct
banking companies, scheduled banks and other financial institutions, through an
order in writing, to intermittently suspend operation of the bank account of such a
person for three working days.

320
Section 14A repealed, which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021.
321
New section 14AB added by Finance Act, 2022.
322
Section 14AC,14Ad and 14AE inserted by Finance Act, 2025

46
 Sales Tax Act, 1990

(3) The Commissioner shall, if the contravention continues under sub-

section (1), repeat suspension specified in sub-section (2), for two more times with
an interval of one week between the suspensions.

(4) The Commissioner shall, if the contravention under sub-section

(1) continues after his order under sub-section (3), direct the banking companies,
scheduled banks and other financial institutions, through an order in writing to
permanently bar operation of the bank accounts of the person.

(5) Upon registration of such person, the Commissioner shall issue

and convey order for removal of bar on operation of his bank accounts not later
than two working days.

(6) Any person, aggrieved by any decision or order passed under this
section, may within thirty days of the date of receipt of such decision or order
prefer an appeal before the Chief Commissioner Inland Revenue.

(7) The provisions of this section shall come into force on such date
as the Board may notify in the official Gazette.

14AD. Bar on transfer of Immoveable Property. — (1) Where the

person fails to obtain registration within fifteen days from issuance of order under
sub-section (4) of section 14AC, the Chief Commissioner shall constitute a
committee comprising the Chief Commissioner, Commissioner and one member
from the Chamber of Commerce or a Trade Associations, as the case may be.

(2) The committee shall issue a notice to such unregistered person

which shall also be prominently displayed at the business premises of the person.

(3) The committee after affording a personal hearing to the person

shall either recommend for imposition of bar on transfer of immovable property or
recommend to the Commissioner to remove the bar imposed under section 14AC.

(4) For imposition of bar on transfer of immovable property, the

Committee shall recommend the Commissioner for imposition of bar on transfer
of immovable property:

Provided that the Committee shall provide an opportunity to obtain

registration within fifteen days prior to the recommendation.

(5) The Commissioner shall have the powers to direct the property
registering authority, through an order in writing, to bar transfer of immoveable
property of any person who fails to obtain registration after lapse of fifteen days.

(6) Upon registration of such person, the Commissioner shall issue

and convey order for removal of bar on transfer of immovable property not later
than two working days.

47
 Sales Tax Act, 1990

(7) Any person, aggrieved by the decision or order passed may, within
thirty days of the date of receipt of such decision or order prefer an appeal before
the Chief Commissioner Inland Revenue who is not member of the committee.

(8) The provisions of this section shall come into force on such date
as may be notified by the Board.

14AE. Other measures for non-registration.– (1) Subject to prior action

under section 14AC and 14AD, any person who fails to get registered for the
purposes of this Act, the Chief Commissioner shall have the powers to--

(a) seal the business premises;

(b) seize moveable property; or

(c) appoint a receiver for the management of the taxable activity of a

person.

(2) Action under sub-section (1) shall not be carried out, unless-

(a) a public notice is issued specifying the date from which

the premises shall be sealed, or movable property is
seized, or a receiver is appointed for the management of
the taxable activity;

(b) a committee comprising the Chief Commissioner, the

Commissioner concerned and a representative from the
Chambers of Commerce or Trade Associations, provides
an opportunity of being heard to the person through an
open court; and

(c) such decision is made public by placement on the Board’s

website and newspaper as well.

(3) Upon registration, of such person the Chief Commissioner shall

reverse the order issued under sub-section (1) not later than two working days.

(4) Any person, aggrieved by any decision or order passed under sub-
section (1), may within thirty days of the date of receipt of such decision or order,
prefer representation before the Board.

(5) All or any of the provisions of this section shall come into force on
such date as the Board may notify in the official Gazette.

48
 Sales Tax Act, 1990
323
[15. ***]
324
[16. ***]
325
[17. ***

18. ***

19. ***

20. ***]
326
[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.

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

327
[Commissioner] is satisfied that a registered person is found to have issued fake
invoices 328[...] or has 329[otherwise] committed tax fraud, he may 330[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.]
331
(2A) The Commissioner shall, within ten days of issuance of order of
suspension, issue a show cause notice to the registered person. Upon receipt of the
reply to the notice and after giving an opportunity of hearing to the registered
person, if the Commissioner is satisfied, he may order for revoking of suspension
of the registered person or issue an appealable speaking order for blacklisting of
the registered person within thirty days of receipt of the reply to the notice.
332
[(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 333[...] be rejected through a self-speaking appealable order and after
affording an opportunity of being heard to such person.]

323
Section 15 omitted by the Finance Act, 2014.
324
Section 16 omitted by Finance Act, 2003.
325
Sections 17 to 20 omitted by Finance Act, 2004.
326
Section 21 substituted by Finance Act, 2004.
327
Substituted “for collector” by Finance Act, 2010
328
Comma and words “, evaded tax” omitted by Finance Act, 2005.
329
Word inserted by Finance Act, 2005.
330
Words substituted by Finance Act, 2024.
331
Sub-section (2A) inserted by Finance Act, 2025
332
Sub Section (3) inserted by Finance Act, 2011
333
Words and figure omitted by Finance Act, 2013.

49
 Sales Tax Act, 1990
334
[(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.]
335
[(5) Notwithstanding anything contained in this Act, the Chief
Commissioner may, either of his own motion or on application made by the
registered person call for and examine the record of proceedings and the order of
suspension and blacklisting under sub-section (2) and after making such inquiry as
is necessary, may modify the such order as he may deems fit:
Provided that no order under this sub-section shall be passed unless an
opportunity of being heard has been provided to the registered person.]
336
[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
337
[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 338[, 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;

334
Sub section (4) inserted by Finance Act, 2013.
335
New sub-section added by Finance Act, 2024.
336
Section 21A inserted by Finance Act, 2015.
337
Section 22 substituted by Finance Act, 1996.
338
The comma and words inserted by Finance Act, 2005.

50
 Sales Tax Act, 1990
339
[(c) records of goods imported shall show the description, quantity and
value of goods and the amount of tax paid on imports;]
340
[(d)] records of zero-rated and exempt supplies;
341
[(da) double entry sales tax accounts;]
342
[(e)] invoices, credit notes, debit notes, bank statements, 343[banking
instruments in terms of section 73,] inventory records, 344[utility
bills, salary and labour bills, 345[cash book,] rental agreements, sale
purchase agreements and lease agreements]; 346[...]
347
[(ea) Record relating to Gate passes, inward or outward and transport
receipts.]
348
[(eb) Electronic version of records mentioned in clauses (a) to (ea) of this
sub-section.]
349
[(f)] such other records as may be specified by the Board:
350
[Provided that the persons paying 351[...] retail tax shall keep such record
as may be specified by the Board.]
352
[(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.
353
[(2A) The Board may, by notification in the Official Gazette, specify for any
class of taxable persons registered under this Act to use such electronic fiscal cash
registers as are approved by the Board in the manner as may be prescribed.]

339
Clause (c) inserted by Finance Act, 2005.
340
Existing clause (c) re-lettered as clause (d) by Finance Act, 2005.
341
Clause (da) inserted by Finance Act, 2006.
342
Existing clause (d) re-lettered as clause (e) by Finance Act, 2005.
343
The words, comma and figure inserted by Finance Act, 2004.
344
The commas and words inserted by Finance Act, 1999.
345
Expression inserted by Finance Act, 2021.
346
The word “and” omitted by Finance Act, 2013.
347
Clause (ea) inserted by Finance Act, 2013.
348
New clause (eb) inserted by Finance Act, 2021.
349
Existing clause (e) re-lettered as clause (f) by Finance Act, 2005
350
Proviso substituted by the Finance Act, 1997.
351
The words “turnover tax or” omitted by Finance Act, 2005.
352
Sub-section (1A) inserted by Finance Act, 2007.
353
Sub-section (2A) inserted by Finance Act, 1999.

51
 Sales Tax Act, 1990

354
[(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.]]
355
[(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 particulars356[, in Urdu or English language,] namely: –

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

[357(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 358[:]
359
[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 360[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

354
Sub Section (3) substituted by Finance Act, 2003.
355
Sub Section (4) inserted by Finance Act, 2007.
356
The expression added through Finance Act, 2019.
357
Clause (b) substituted by Finance Act, 2022.
358
Colon substituted by Finance (Supplementary) Act, 2022.
359
Proviso inserted by Finance (Supplementary) Act, 2022.
360
The expression added through Finance Act, 2019.

52
 Sales Tax Act, 1990
361
[(ff) ***]

(g) value inclusive of tax:

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

specify such modified invoices 362[...] for different persons or classes of persons;

Provided further that not more than one tax invoice shall be issued for a
taxable supply363[.]
364
Provided also that where any goods are transported or supplied, the
registered person shall ensure the generation and linkage of the tax invoice with
the e-Bilty generated under section 40C of this Act and section 83C of the Customs
Act, 1969.
365
[***]
366 367
[(2) No person other than a registered person or a person paying [***
368
[***]]369[retail tax] shall issue an invoice under this section.
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
(5) The Board through notification in the official Gazette, may require
any person or class of persons to integrate their electronic invoicing system with
the Board’s Computerized System for real time reporting of sales in such mode
and manner and from such date as may be specified therein.
(6) Licensed integrator shall integrate electronic invoicing system of
registered persons referred to in sub-section (5) in such mode and manner as may
be prescribed:
Provided that from such date, and in such mode and manner, as
prescribed by the Board, all Tier-1 retailers shall integrate their retail outlets with
Board’s computerized system for real-time reporting of sales.

361
Clause (ff) omitted by Finance Act, 2004.
362
Comma and words “, including replacement invoice,” omitted by Finance Act, 1997.
363
Full stop substituted by Finance (Supplementary) Act, 2022.
364
Proviso inserted by Finance Act, 2025.
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.
370
Sub section (3) substituted by Finance Act, 2024.
371
Sub Section (4) inserted by Finance Act, 2007.
372
Sub-sections (5) inserted by Finance Act, 2025.

53
 Sales Tax Act, 1990

373
[24. Retention of record and documents for 374[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 375[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].]
376
[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 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

373
Section (24) substituted by Finance Act, 1996.
374
Substituted for “Five” by Finance Act, 2010.
375
Words and Commas inserted by Finance Act, 2010.
376
Section 25 substituted by Finance Act, 2024.

54
 Sales Tax Act, 1990

such record or documents have been kept on electronic data, the registered person
shall allow authorize officer of Inland Revenue access to the use of machine and
software on which such data is kept and the officer of Inland Revenue may obtain
duly attested hard copies of such information or data from the registered person:

Provided that the officer of Inland Revenue shall not call for record or
documents of the registered person after expiry of six years from the end of the
financial year to which they relate.

(5) The officer of Inland Revenue may require the registered person
to attend his office in person or through an authorized representative. The
registered person shall produce such accounts, documents or any evidence as the
officer of Inland Revenue may consider necessary.

(6) The officer of Inland Revenue not below the rank of Assistant
Commissioner may conduct or cause to be conducted such enquiry and obtain such
information from any third party as he considers appropriate.

(7) The officer of Inland Revenue not below the rank of Assistant
Commissioner shall conduct audit of the sales tax affairs to verify the correctness
or otherwise of the declared tax liability, output tax, input tax claimed, tax paid,
refund claimed, stocks consumed or available for ascertaining 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 75 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

55
 Sales Tax Act, 1990

evaded along with default surcharge voluntarily, whenever it comes to his notice,
before receipt of notice of audit, no penalty shall be recovered from him:

Provided that if a registered person wishes to deposit the amount of tax

short paid or amount of tax evaded along with default surcharge during the audit,
or at any time before issuance of show cause notice under section 11E, he may
deposit the evaded amount of tax, default surcharge under section 34, and twenty
five percent of the penalty payable under section 33:

Provided further that if a registered person wishes to deposit the amount

of tax short paid or amount of tax evaded along with default surcharge after
issuance of show cause notice under section 11E, he shall deposit the evaded
amount of tax, default surcharge under section 34, and full amount of the penalty
payable under section 33 and thereafter, the show cause notice, shall stand abated.]
377
[25A. Drawing of samples.– Where an authorized officer of 378[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 379[Large Taxpayers
Unit or Regional Tax Office, as the case may be].]
380
[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 between the persons
as is necessary to reflect the fair market value of supplies in an arm’s length
transaction.]
381
[(2) The Board may, by notification in official gazette, prescribe rules for
carrying out the purpose of sub-section (1).]

377
Section 25A inserted by Finance Act, 1999.
378
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.
379
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.
380
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.
381
Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021.

56
 Sales Tax Act, 1990

Chapter-V

RETURNS

382
[26. 383[***] Return.– (1) Every registered person 384[...] shall furnish not
later than the due date a true 385[, complete] and correct return in the prescribed
form to a designated bank 386[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 387[;]
388
[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
389
[:]

Provided also that every online marketplace shall furnish not later than the
due date a true, complete and correct monthly statement in the prescribed form,
indicating the supplier-wise amount paid and tax due and such other information
of the taxable supplies of digitally ordered goods irrespective of the economic
ownership of the supplies from within Pakistan:

Provided further also that every payment intermediary and courier shall
furnish not later than the due date a true, complete and correct monthly statement
in the prescribed form, indicating the supplier-wise amount paid and tax due and
such other information for taxable supplies of digitally ordered goods from within
Pakistan through an online market place, website and software application and
delivering goods using its payment platform or courier service as the case may be.
390
[...]

382
Section 26 substituted by Finance Act, 1996
383
Word “monthly” omitted by Finance Act, 2006.
384
Words “making taxable supplies” omitted by Finance Act, 1999.
385
Comma and word inserted by Finance Act, 2020.
386
Words inserted by Finance Act, 2006.
387
In the proposed amendment “a full stop is substituted for a colon” while colon is already appearing.
388
Proviso inserted by Finance Act, 2006.
389
In sub-section (1), in the third proviso, for the full stop at the end, a colon is substituted and thereafter new provisos inserted by Finance Act, 2025.
390
Proviso omitted by Finance Act, 2006

57
 Sales Tax Act, 1990
391
(2) [....] omitted
392
[(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.]
393
[(3) A registered person may, subject to approval of the 394[Commissioner
Inland Revenue] having jurisdiction, file a revised return within 395[one hundred
and twenty] days of the filing of return under sub-section (1) or, as the case may
be, sub-section (2), 396[ or under clause (a) or clause (b) of section 27], to correct
any omission or wrong declaration made therein 397[.]

[omitted]
398
(3A) Unless restricted by the compliance risk management system of the
Board, the approval under sub-section (3), shall not be required if revised return is
filed within sixty days of filing of return and the tax payable therein is more than
the amount paid or the refund claimed therein is less than the amount as claimed,
under the return sought to be revised.
399
[(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 400[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 401[Inland Revenue] during the audit, or at
any time before issuance of the show cause notice 402[...], 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:

391
Sub-section (2) omitted through Finance Act, 2016.
392
New sub-section inserted by Finance Act, 2024.
393
Sub section (3) substituted by Finance Act, 2006.
394
Substituted for collector of Sales tax by Finance Act, 2010
395
Substituted for “ninety” by Finance Act, 2008.
396
Words inserted by Finance Act, 2011.
397
In sub-section (3), for the colon occurring at the end, a full stop substituted and thereafter the proviso omitted by Finance Act, 2025
398
Sub-section (3A) inserted by Finance Act, 2025.
399
Subsection (4) inserted by Finance Act, 2003.
400
Substituted for “Additional Tax” by Finance Act, 2005.
401
Substituted for “Sales tax” by Finance Act, 2010.
402
Words “in lieu of the audit report” omitted by Finance Act, 2010.

58
 Sales Tax Act, 1990

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 403[...],404[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.]
405
[(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.]
406
[26A. ***]
407
[26AA. ***]
408
[26AB. Extension of time for furnishing returns. (1) A registered
person required to furnish a return under section 26 may apply, in writing, to the
Commissioner for an extension of time to furnish the return.

(2) An application under sub-section (1) shall be made by the due date
for furnishing the return in terms of section 2(9) for the period to which the
application relates.

(3) Where an application has been made under sub-section (1) and the
Commissioner is satisfied that the applicant is unable to furnish the return to which
the application relates by the due date because of–

(a) absence from Pakistan;

(b) sickness or other misadventure; or
(c) any other reasonable cause,

the Commissioner may, by order in writing, grant the

applicant an extension of time for furnishing the return.

(4) An extension of time under sub-section (3) shall not exceed fifteen
days from the due date for furnishing the return, unless there are exceptional
circumstances justifying a longer extension of time:

Provided that where the Commissioner has not granted extension for
furnishing the return under sub-sections (3) or (4), the Chief Commissioner may
on an application made by the registered person for extension or further extension,
as the case may be, grant extension or further extension for a period not exceeding

403
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.
404
Substituted for words “additional tax” by Finance Act, 2005.
405
Sub section (5) inserted by Finance Act, 2004.
406
Section 26 A omitted by Finance Act, 2004.
407
Section 26AA omitted by Finance Act, 2008.
408
New section 26AB inserted by Finance Act, 2021.

59
 Sales Tax Act, 1990

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.]

409
[27. Special Returns.– In addition to the return specified under
section 26 –

(a) a person registered 410[ 411[ ] 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 payment of arrears
made, etc, for such period as the Board may, by a notification in official gazette,
specify; and

(b) the 412[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.]
413
[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
414
[commissioner] in the specified form in such manner and at such time as directed
by the 415[commissioner]].

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

made on behalf of a person 416[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.

409
Section 27 substituted by the Finance Ordinance, 2000.
410
Substituted for words and figure “under section 14” by sales tax (Amendments) Ordinance, 2000, dated September 05, 2000.
411
Words “or enrolled” omitted by Finance Act, 2004.
412
Substituted for “Collector” by Finance Act, 2010
413
Section 28 substituted by Finance Act, 1996.
414
Substituted for “Collector” by Finance Act, 2010
415
Substituted for “Collector” by Finance Act, 2010
416
Words inserted by Finance Act, 1996.

60
 Sales Tax Act, 1990

Chapter-VI

APPOINTMENT OF 417[OFFICERS OF SALES TAX] &

THEIR POWERS
418
[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);

(d) an Additional commissioner of Inland Revenue ;

(e) a Deputy commissioner of Inland Revenue;

419
[(ea) District Taxation Officer Inland Revenue;]

(f) an Assistant commissioner of Inland Revenue;

420
[(fa) Assistant Director Audit Inland Revenue;]

(g) an Inland Revenue Officer;

(h) a Superintendent Inland Revenue;

(i) an Inland Revenue Auditor Officer 421[...];

422
[(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.

417
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.
418
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.
419
Clause (ea) inserted through Finance Act, 2017
420
Clause (fa) inserted through Finance Act, 2017
421
Word “and” omitted by Finance Act, 2011.
422
Clause “(ia)” inserted by Finance Act, 2011

61
 Sales Tax Act, 1990
423
[(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.]

(3) Additional Commissioner Inland Revenue, Deputy Commissioners

Inland Revenue 424[, 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 425[, 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 426[, 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, 427[Inspector Inland Revenue Officer] an officer
of Inland Revenue with any other designation shall be sub-ordinate to the
Additional Commissioner Inland Revenue.]
428
[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, 429[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.]
430
[30AB. Tax Fraud Investigation Wing Inland Revenue.– (1) There
shall be established a wing to be known as Tax Fraud Investigation Wing-Inland
Revenue.

423
Sub-sections (2A) & (2B) inserted through Finance Act, 2017
424
Expressions inserted through Finance Act, 2017
425
Comma and words inserted by Finance Act, 2011.
426
Expression inserted through Finance Act, 2017
427
Comma and words inserted by Finance Act, 2011.
428
Section 30A substituted by Finance Act, 2018.
429
Substituted for the word “post” through Finance Act, 2019.
430
New section inserted by Finance Act, 2024.

62
 Sales Tax Act, 1990

(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 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.]
431
[30B. Directorate General 432[...] Internal Audit.– The Directorate
General 2[...] 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
Section 30B inserted by Finance Act, 2005.
432
Words “of inspection and” omitted by Finance Act, 2007.

63
 Sales Tax Act, 1990
433
[30C. 434[Inland Revenue Services Academy].--The 435[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.
436
[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.]
437
[30D. Directorate General of Valuation 438[...].--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.
439
[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.]
440
[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.]
441
[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.]
442
[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 443[Inland Revenue] appointed under section

30 shall exercise such powers and discharge such duties as are conferred or

433
Section 30C inserted by Finance Act, 2005.
434
Marginal heading substituted by Finance Act, 2022.
435
Words substituted by Finance Act, 2022.
436
Section 30CA substituted by Finance Act, 2023
437
Section 30D inserted by Finance Act, 2005.
438
Words “and Post Clearance Audit” omitted by Finance Act, 2007.
439
Section 30DD inserted by Finance Act, 2007.
440
New section 30DDD added through Finance Act, 2016.
441
New section 30DDDA added through Tax Laws (Amendment) Act, 2024.
442
Section 30E inserted by Finance Act, 2005.
443
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

64
 Sales Tax Act, 1990

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.
444
[32. Delegation of powers.– 445[(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.]
446
[(2) ***]

(3) The officer to whom any powers are delegated under this section
shall not further delegate such powers.]
447
[32A. 448[Audit by Special Audit Panels]. 449[(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);

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
444
Section 32 substituted by Finance Act, 1996.
445
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
446
Sub Section (2) omitted by the Finance Act, 2010.
447
Section 32A inserted by Finance Act, 1998.
448
Substituted for the words “Special Audit by Chartered Accountants or Cost Accountants” by Finance Act, 2015
449
Substituted for sub-section (1) by Finance Act, 2015

65
 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 450[Commissioner]
may direct 451[special audit panel] appointed under sub-section (1) to audit the
records of any registered person.

(3) 452[Every member of special audit panel] appointed under sub-

section (1), shall have the powers of an officer of 453[Inland Revenue] under
sections 25, 37 and 38.
454
[(4) Each special audit panel shall be headed by a chairman who shall be
an officer of Inland Revenue.

(5) If any one member of the special audit panel, other than the chairman,
is absent from conducting an audit, the proceedings of the audit may continue and
the audit conducted by the special audit panel shall not be invalid or be called in
question merely on the ground of such absence.

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

and working of special audit panel.]
455
[32AA. ***]

32B. Appointment of experts and auditors. — (1) The Board or the

456

Commissioner may appoint as many experts as it or the Commissioner considers

necessary for the purposes of this Act, including for the purposes of assistance in
audit, investigation, litigation or valuation.

450
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.
451
Substituted for the words “an auditor” by Finance Act, 2015
452
Substituted for the words “An Auditor” by Finance Act, 2015
453
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.
454
Sub-sections (4), (5) and (6) inserted by Finance Act, 2015.
455
Section 32 AA omitted by Finance Act, 2008, earlier it was inserted by Tax Laws Amendment Ordinance, 2000, dated may 24, 2000.
456
Section 32B inserted by Finance Act, 2025

66
 Sales Tax Act, 1990

(2) The Board may appoint as many auditors as it may deem fit, through direct
engagement or through a third party including a pay roll firm for the purposes of
this Act, and confer such powers as may be deemed necessary to assist the
authorities mentioned in clauses (a) to (f) of sub-section (1) of section 30 of this
Act and clauses (a) to (f) of sub-section (1) of section 29 of the Federal Excise
Act, 2005, as per the terms, conditions, limitations and restrictions as may be
prescribed.

Chapter-VII
457
[OFFENCES, PENALTIES AND PUNISHMENT]

[33. Offences, Penalties and Punishment.– 458[...] 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 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
1. Where any person Such person shall pay a penalty 26
fails to furnish a of 460[ten] thousand rupees:
return within the due
date. Provided that in case a person
files a return within 461[ten] days
of the due date, he shall pay a
penalty of 462[two] hundred
rupees for each day of default.
463
1A.Where any online Such person shall be liable to 26
marketplace, pay:
payment
intermediary or (i) Penalty of three lac rupees
courier fails to for the first default if he
furnish prescribed fails to furnish the

457
Marginal heading substituted by Finance Act, 2025.
458
Bracket and figure “one” omitted by Finance Act, 2008.
459
In section 33, in the Table, in column (2), after the expression “Penalties”, the expression “and Punishment” inserted by Finance Act, 2025.
460
Substituted for the word “five” by Finance Act, 2019..
461
Substituted for the word “fifteen” by Finance Act, 2015.
462
Substituted for the word “one” by Finance Act, 2019.
463
S. No. 1A and 1B entries relating thereto in columns (1), (2) and (3) inserted by Finance Act, 2025.

67
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
monthly statement prescribed statement for
within due date two consecutive months;

(ii) Penalty of one million

rupees for each subsequent
default within one year.
1B. Where any online Such person shall be liable to 14
marketplace, courier pay:
allow use of its
services in the course (i) Penalty of five lac rupees
of e-commerce by for first default;
unregistered persons (ii) Penalty of one million
rupees for each subsequent
default.
2. Any person who fails Such person shall pay a penalty 23
to issue an invoice of five thousand rupees or three
when required under per cent of the amount of the tax
this Act. involved, whichever is higher.
3. Any person who un- Such person shall pay a penalty 3, 7 and 23
authorizedly issues an of ten thousand rupees or five
invoice in which an per cent of the amount of t
amount of tax is he tax involved, whichever is
specified. higher.

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

to notify the changes of five thousand rupees.
of material nature in
the particulars of
registration of
taxable activity.
5. Any person who fails Such person shall pay a penalty 3, 6, 7 and 48
to deposit the of ten thousand rupees or five
amount of tax due or per cent of the amount of the tax
any part thereof in involved, whichever is higher:
the time or manner
laid down under this Provided that, if the amount of
Act or rules or orders tax or any part thereof is paid
made there under. within 464[ten] days from the
due date, the defaulter shall pay

464
Substituted for the word “fifteen” by Finance Act, 2015.

68
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
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 465[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 Such person shall pay a penalty 7 and 26
repeats erroneous of five thousand rupees or three
calculation in the per cent of the amount of the tax
return during a year involved, whichever is higher.
whereby amount of
tax less than the actual
tax due is paid.
7. Any person who is Such person shall pay a penalty 14
required to apply for of ten thousand rupees or five
registration under this per cent of the amount of tax
Act fails to make an involved, whichever is higher:
application for
registration before Provided that such person who
making taxable is required to get himself
supplies. registered under this Act, fails

465
Substituted for “Sales tax”, not below the rank of Assistant Collector of sales tax” by Finance Act, 2010

69
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
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 Such person shall pay a penalty 22 and 24
to maintain records of ten thousand rupees or five
required under this per cent of the amount of tax
Act or the rules made involved, whichever is higher.
there under.
9. Where a registered such person shall pay a penalty 25
person who, without of five thousand rupees;
any reasonable cause,
in non compliance with such person shall pay a penalty
the provisions of of ten thousand rupees; and
section 25, – –
such person shall pay a penalty
(a) fails to produce the of 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 Such person shall pay a penalty 26
to furnish the of ten thousand rupees.
information required
by the Board through
a notification issued
under sub-section (5)
of section 26.

70
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
11. 466[Omitted]
12. Any person who Such person shall pay a penalty 25, 38 , 470[38A
denies or obstructs of twenty five thousand rupees and 40B]
the access of an or one hundred per cent of the
authorized officer to amount of tax involved,
the business whichever is higher. 468[Without
premises, registered prejudice to above, he shall also
office or to any other be liable,] upon conviction by a
place where records Special Judge, to imprisonment
are kept, or for a term which may extend to
otherwise refuses five years, or with fine 469[which
access to the stocks, may extend to an amount equal
accounts or records to the amount of tax evaded or
or fails to present the sought to be evaded], or with
same when required both.
under section 25, 38
467
[38A or 40B].
471
13. (i) Any person (i) Such person shall be 2(37)
who commits or, causes liable, upon conviction by
to commit tax fraud as a Special Judge, to
defined under sub- imprisonment for a term
clauses (a), (b), (c), (d),which may extend upto
(e) or (f) of clause (37) five years. Such person
of section 2. shall also be liable to pay
the amount equal to the
loss of tax caused as
confirmed by the Special
Judge from such amount
reported under sub
section (11) of section
37B, including one
hundred percent penalty
of tax loss and default
surcharge under section
(ii) Any person who 34 of the Act.
commits or, causes to
commit tax fraud as

466
S. No. 11, and entries relating thereto omitted by Finance Act, 2025.
467
Substituted for “or 38A” by Finance Act, 2009
468
Words substituted by Finance Act, 2024.
469
Words substituted by Finance Act, 2024.
470
Substituted for “or 38A” by Finance Act, 2009
471
S. No. 13 and entries relating thereto substituted by Finance Act, 2025.

71
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
defined under sub- (ii) Such person shall be liable,
clauses (g), (h), (i), (j) or upon conviction by a
(k) of clause (37) of Special Judge, to
section 2 imprisonment for a term
which may extend upto
five years. Such person
shall also be liable to pay
the amount equal to the
loss of tax caused as
confirmed by the Special
Judge from such amount
reported under sub section
(11) of section 37B,
including one hundred
percent penalty of tax loss
and default surcharge
under section 34 of the Act.
472
13A. Any person who Such person shall be liable, 2(1), 2(37),
abets or connives upon conviction by a Special 50A”;
in committing Judge, to imprisonment for a
tax fraud as term which may extend to five
defined in years or with fine which may
section 2(37) or extend to ten million rupees, or
any offence with both.
warranting
prosecution
under the Act.
14. Where any person Such person shall pay a penalty 48
violates any embargo of twenty five thousand rupees
placed on removal of or ten per cent of the amount of
goods in connection the tax involved, whichever is
with recovery of tax. higher. 473[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 474[which may
extend to an amount equal to the

472
S. No. 13A and entries relating thereto inserted by Finance Act, 2025.
473
Words substituted by Finance Act, 2024.
474
Words substituted by Finance Act, 2024.

72
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
amount of tax evaded or sought
to be evaded], or with both.
15. Any person who Such person shall pay a penalty 31 and General
obstructs the of twenty five thousand rupees
authorized officer in or one hundred per cent of the
the performance of amount of tax involved,
his official duties. whichever is higher.
16. Any person who fails Such person shall pay a penalty 73
to make payment in of five thousand rupees or three
the manner per cent of the amount of tax
prescribed under involved, whichever is higher.
section 73 of this
Act.
17. Any person who fails Such person shall pay a penalty 71 and General
to fulfil any of the of five thousand rupees or three
conditions, per cent of the amount of tax
limitations or involved, whichever is higher.
restrictions
prescribed in a
Notification issued
under any of the
provisions of this
Act.
18. Where any officer of Such officer of 476[Inland General
475
[Inland Revenue] Revenue] shall be liable, upon
authorized to act conviction by a Special Judge,
under this Act, acts to imprisonment for a term
or omits or attempts which may extend to three
to act or omit in a years, or with fine 477[which
manner causing loss may extend to an amount equal
to the sales tax to the amount of tax evaded or
revenue or otherwise sought to be evaded], or with
abets or connives in both.
any such act.
19. Any person who Such person shall pay a penalty General.]
contravenes any of of five thousand rupees or three
the provision of this per cent of the amount of tax
Act 478[or the rules involved, whichever is higher. ]

475
Words “Sales Tax” substituted for Inland Revenue by Finance (Amended) Ordinance, 2010.
476
Substituted for “Sales Tax” by Finance Act, 2011
477
Words substituted by Finance Act, 2024.
478
Words added through Finance Act, 2016.

73
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
made thereunder] for
which no penalty
has, specifically,
been provided in this
section.
479
[ 20. *** ]
480
[21. Where any person Such person shall pay twice the General.
repeats an amount of penalty provided
offence for under the Act for the said
which a penalty offence
is provided under
this Act
481
22. [Omitted]
482
[23. Any person who (i) Such [specified goods] 40C(2)]
manufactures, shall be liable to outright
possesses, confiscation 484[as may be
485
transports, prescribed] [***]. Any
distributes, stores person committing the offence
or sells 483[goods shall pay a penalty of twenty-
or class of goods five thousand rupees or one
as specified by the hundred per cent of the amount
Board under sub- of tax involved, whichever is
section (1) of higher. 486[Without prejudice to
section 40C] with above, he shall also be liable],
counterfeited tax upon conviction by a Special
stamps, Judge, to simple imprisonment
banderoles, for a term which may extend to
stickers, labels or three years, or with additional
barcodes or fine 487[which may extend to an
without tax amount equal to the amount of
stamps, tax evaded or sought to be
banderoles, evaded], or with both.
stickers, labels or
barcodes (ii) In case of transport of
[specified goods] with
counterfeited tax stamps,
banderoles, stickers, labels or
barcodes, or without tax stamps,
banderoles, stickers, labels or

479
Serial No. 20 omitted by Finance Act, 2008.
480
Serial No. 21 and 22 inserted by Finance Act, 2006.
481
S. No. 22, and entries relating thereto omitted by Finance Act, 2025.
482
S.No. 23 and entries relating thereto in columns (1), (2) and (3) inserted through Finance Act, 2017
483
Expression substituted by Finance Act, 2023
484
Words inserted by Finance Act, 2024.
485
Expression omitted by by Finance (Supplementary) Act, 2022.
486
Words substituted by Finance Act, 2024.
487
Words substituted by Finance Act, 2024.

74
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
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 488[shall be liable to be
sealed by an officer of Inland
Revenue in the manner as may
be prescribed.]
489
[“24. Any person, who Such person shall pay a penalty sub-section (9A)
is integrated for of five hundred thousand rupees of section 3 and
monitoring, or two hundred per cent of the section 40C.
tracking, reporting amount of tax involved,
or recording of whichever is higher. [Without
sales, production prejudice to above, he shall also
and similar be liable], upon conviction by a
business Special Judge, to simple
transactions with imprisonment for a term which
the Board or its may extend to two years, or with
computerized additional fine which may
system, conducts extend to two million rupees, or
such transactions with both.
in a manner so as
492
to avoid [Notwithstanding
monitoring, above, the business
tracking, reporting premises of such person
or recording of shall be liable to be sealed
such transactions, by an officer of Inland
or issues an Revenue in the manner
invoice which prescribed.]
does not carry the
prescribed invoice
number or barcode Any person who abets
490
[or QR code] or commissioning of such offence,
bears duplicate shall be liable, upon conviction
invoice number or by a Special Judge, to simple
counterfeit imprisonment for a term which
may extend to one year, or with

488
Words substituted by Finance Act, 2024.
489
New serial numbers “24”, “25”, “26” and “27” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
490
Words added by Finance Act, 2022.
492
Paragraph under serial number 24 inserted by Finance (Supplementary) Act, 2022.

75
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
barcode, 491[or QR additional fine which may
code or defaces the extend to two hundred thousand
prescribed invoice rupees, or with both.
number of barcode
or QR code] or any
person who abets
commissioning of
such offence.

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

required to pay a penalty up to one million
integrate his rupees, and if continues to 495[***] section
business for
monitoring, commit the same offence after a 40C
tracking, reporting period of 493[two] months after
or recording of imposition of penalty as
sales, production aforesaid, his business premises
and similar 494
[shall be liable to be sealed by
business an officer of Inland Revenue in
transactions with the manner as may be
the Board or its
computerized prescribed.]
system, fails to get
himself registered
under the Act, and
if registered, fails
to integrate in the
manner as required
under law.
496
[25A A person Such person shall be liable to 497[Section 23]
500
required to pay: [and sub-
integrate his (i) penalty of five hundred section (4) of
business as thousand rupees for first section 40C]
stipulated under default;
497
[section 23], (ii) penalty of one million
498
[or sub-section rupees for second default
(4) of section after fifteen days of order
40C,] who fails to for first default;
get himself (iii) penalty of two million
registered under rupees for third default

491
Words added by Finance Act, 2022.
493
The word substituted by Finance Act, 2020.
494
Words substituted by Finance Act, 2024.
495
Expression omitted by by Finance Act, 2022.
496
Serial number substituted by Finance Act, 2022.
497
The expression “section 23” substituted by Finance Act, 2025;
498
Expression inserted by Finance Act, 2024.
500
Expression inserted by Finance Act, 2024.

76
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
the Act, and if after fifteen days of order
registered, fails to for second default;
integrate in the (iv) penalty of three million
manner as required rupees for fourth default
under the law and after fifteen days of order
rules made for third default:
thereunder 499[or Notwithstanding above, the
fails to issue business premises of such
electronic invoices person shall be liable to be
after integration.] 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.]
501
[25AA. Any licensed Such person shall be liable to sub-section (5)
integrator who is pay penalty of rupees one of section 40C.]
authorized to provide million or one percent of the
total value of the sales
electronic invoicing 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.
502
25B. Where any Such person shall be liable to sub-section (6)
person fails to generate pay penalty of fifty thousand of 40C.”.
an e-bilty, or tampers rupees and recovery of any tax
with, misuses, or forges evaded through such
such document in contravention
contravention of sub-
section (6) of section
40C.

499
the words “or fails to issue electronic invoices after integration” added by Finance Act, 2025.
501
Serial number 25AA inserted by Finance Act, 2024.
502
S. No. 25B and entries relating thereto inserted by Finance Act, 2025.

77
 Sales Tax Act, 1990

Offences Penalties 459[and Punishment] Section of the

Act to which
offence has
reference
(1) (2) (3)
26. Any person, being a Such person shall pay a penalty sub-section (27)
manufacturer or of ten thousand rupees or five of section 2 and
importer of an item per cent of the amount of tax clause (a) of sub-
which is subject to involved, whichever is higher:
tax on the basis of section (2) of
retail price, who Further, such goods shall also section 3.
fails to print the be liable to confiscation 503[as
retail price in the may be prescribed.] However,
manner as the adjudication authority, after
stipulated under such confiscation, may allow
the Act. 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 section 40D”;]
owner of the of ten thousand rupees or five
goods, which are per cent of the amount of tax
brought to involved, whichever is higher:
Pakistan in
violation of Further, such goods shall also
section 40D. be liable to confiscation 504[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.

505[28. Any person who Such person shall pay a penalty 56AB]
is required to of twenty five thousand rupees
share information for first default and fifty
under section thousand rupees for each
56AB, fails to do subsequent default
so in the manner as
required under the
law
506
[33A***].

503
Words inserted by Finance Act, 2024.
504
Words inserted by Finance Act, 2024.
505
New serial number 28 added by Finance Act, 2020.
506
Section 33A omitted by Finance Act, 2022.

78
 Sales Tax Act, 1990
507
[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:—

508
(a) [...] the person liable to pay any amount of tax or charge or the
amount of refund erroneously made, shall pay default surcharge at
the rate of 509[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; 510[and]

511
[(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 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.

507
Section 34 substituted by Finance Act, 2005. Earlier it was also substituted by Finance Act, 1996.
508
Words and comma “for the first six months of default,” omitted by Finance Act, 2008.
509
Words twelve substituted by Finance Act, 2018.
510
Word inserted by Finance Act, 2008.
511
Clause (b) omitted by Finance Act, 2008.

79
 Sales Tax Act, 1990
512
[34A. Exemption from penalty and 513[default surcharge].--The
Federal Government may, by a notification in the official Gazette, or the 514[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 515[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.]
516
[35. ***]
517
[35A. ***]
518
[36. ***]

37. Power to summon persons to give evidence and produce

documents in inquiries under the Act.– (1) Any officer of 519[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.

(3) Any inquiry before an officer of 520[Inland Revenue] shall be deemed

to be a judicial proceeding within the meaning of section 193 and 521[228] of the
Pakistan Penal Code (Act XLV of 1860).
522
(4) For the purpose of an inquiry under this Act, the officer of Inland
Revenue shall have the powers of a civil court trying a suit under the Code of Civil

512
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.
513
Substituted for “additional tax” by Finance Act, 2005
514
Substituted for “Central Board of revenue” by Finance Act, 2007
515
Substituted for “additional tax” by Finance Act, 2005
516
Section 35 omitted by Finance Act, 1996.
517
Section 35A omitted by Finance Act, 1996. Earlier it was inserted by Finance Act, 1992.
518
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.
519
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.
520
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.
521
Substituted for the figure “223” by Finance Act, 1994
522
Sub-section (4) inserted by Finance Act, 2025.

80
 Sales Tax Act, 1990

Procedure, 1908 (Act No. V of 1908), in respect of the following matters,

namely:—

(a) summoning and enforcing the attendance of any person and

examining him on oath; and

(b) requiring the discovery and production of documents and

receiving evidence on affidavits.
523
37A. Power to inquire, investigate offences warranting prosecution
under this Act and Arrest of a person.- (1) Notwithstanding anything contained
in Section 11E of this Act, an officer of Inland Revenue not below the rank of
assistant commissioner or any other officer authorized by the Board in this behalf
on the basis of material evidence pointing to the commission of tax fraud or an
offence warranting prosecution under this act may initiate an inquiry upon
approval by the Commissioner.

(2) For the purpose of an inquiry under this Act, the officer of Inland
revenue shall have the powers of a civil court trying a suit under the Code of Civil
Procedure,1908(Act No. V of 1908), in respect of the following matters, namely:
—

(a) summoning and enforcing the attendance of any person

and examining on oath; and

(b)
requiring the discovery and production of documents and
receiving evidence on affidavits.
(3) The officer of inland revenue shall complete the inquiry while
exercising the powers under the provisions of section 37, 38, 38A, 38B, 40 or any
other section of the Act, wherever required within six months.

(4) During inquiry proceedings, the officer of inland revenue shall

give an opportunity of being heard to the person whose actions alleged to have
caused tax fraud warranting prosecution under this Act, confronting the person the
details of tax fraud committed or caused to be committed by such person for
explanation.

(5) The officer of inland revenue shall submit inquiry report along
with reasons to be recorded in writing indicating the amount involved in tax fraud
worked out as a result of such inquiry to the Commissioner to obtain prior approval
for investigation or the closure of inquiry without any further investigation.

(6) The Commissioner, on the basis of inquiry report under sub-

section (5) and after recording reasons in writing, shall either —

523
Section 37A and 37B substituted by Finance Act, 2025.

81
 Sales Tax Act, 1990

(i) approve initiation of investigation, or

(ii) require the officer of Inland Revenue to submit such

further information or documents as he may direct for his
decision; or

(iii) close the inquiry by rejecting the report or accepting the

report, as the case may be.

(7) After approval of investigation under sub-section (6), the officer

of inland revenue shall complete investigation within three months and prepare
investigation report for submission before the competent court.

(8) The three-member committee notified by the Chairman, may

authorize the Commissioner to issue warrant of arrest of a person, if it is satisfied
on the basis of facts brought before it, that

(a) the tax fraud falls within the ambit of sub-clauses (a), (b),
(c), (d), (e) and (f) of clause (37) of section 2;
(b) the amount involved in tax fraud exceeds fifty million
rupees; and

(c) it has been established during the course of investigation

by the Inquiry Officer that —

(i) the accused is intentionally or willfully not

joining the investigation after three duly served
notices;

(ii) the accused is attempting to abscond; or

(iii) there are sufficient grounds that the accused

would temper with the evidence.

(9) Notwithstanding anything contained in sub-section (8), the officer

of inland revenue may arrest a person alleged to have committed a tax fraud after
obtaining an arrest warrant from the Special Judge in a case of a fraud falling within
the ambit of the subclauses of clause (37) of section 2 during the course of
investigation if:-

(i) the accused is intentionally or willfully not

joining the investigation after three duly served
notices;

(ii) the accused attempting to abscond; or

82
 Sales Tax Act, 1990

(iii) there are sufficient grounds that the accused

would temper with the evidence.
(10) Where the person suspected of tax fraud or any offence warranting
prosecution under this Act is a company, every director or officer of that company
whom the officer of inland revenue has reason to believe is personally responsible
for actions of the company contributing the tax fraud or any offence warranting
prosecution under this Act shall be liable to arrest; provided that any arrest under
this sub-section shall not absolve the company from the liabilities of payment of
tax, default surcharge and penalty imposed under this Act.

(11) Notwithstanding anything contained in this Act, where any person

has committed a tax fraud or any offence warranting prosecution under this Act,
the Commissioner may, either before or after the inquiry or investigation,
compound the offence if such person pays the amount of tax evaded or sought to
be evaded as determined in the inquiry or the investigation along with default
surcharge and penalty as provided under this Act.

(12) Any person accused of an offence who is arrested under this Act
shall at the time of arrest be informed of the grounds of arrest in writing on the
basis of which he has been arrested.

(13) All arrests made under this Act shall be carried out in accordance
with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V of
1898):

Provided that no arrest under this section shall be made before the
completion of inquiry under sub-section (1) of this section.

(14) The accused arrested may approach the competent court for his
release on bail under the provisions contained in sections 497 and 498 of the Code
of Criminal Procedure, 1898 (Act V of 1898).

(15) The purpose of prosecution under the provisions of sections 37A

and 37B of this Act shall remain to —

(a) create sufficient deterrence against tax fraud; and

(b)provide for retribution for commission of tax fraud.;

37B. Procedure to be followed on arrest of a person.- (1) Where an

officer of Inland Revenue arrests a person under Section 37A, he shall immediately
intimate the fact of the arrest of that person to the Special Judge who may direct
such Officer to produce that person at such time and place and on such date as the
Special Judge considers expedient and such Officer shall act accordingly.

(2) Notwithstanding anything contained in the sub-section (1), any

person arrested under this Act shall be produced before the Special Judge or, if

83
 Sales Tax Act, 1990

there is no Special Judge within a reasonable distance, to the nearest Judicial

Magistrate, within twenty-four hours of such arrest, excluding the time necessary
for the journey from the place of arrest to the Court of the Special Judge or, as the
case may be, of such Magistrate.

(3) Where a person is produced under sub-section (2) before the

Special Judge, he may, on the request of such person, after perusing the record, if
any and after giving the prosecution an opportunity of being heard, admit him to
bail on his executing a bond, with or without sureties, or refuse to admit him to
bail and direct his detention at such place as he deems fit:

Provided that nothing herein contained shall preclude the Special Judge
from cancelling the bail of any such person at a subsequent stage if, for any reason,
he considers such cancellation necessary, but before passing such order he shall
afford such person an opportunity of being heard, unless for reasons to be recorded
he considered that the affording of such opportunity shall defeat the purposes of
this Act.

(4) When such person is produced under sub-section (2) before a

Judicial Magistrate, such Magistrate may, after authorising his detention in such
custody at such place and for such period as he considers necessary or proper for
facilitating his earliest production before the Special Judge, direct his production
before the Special Judge on a date and time to be fixed by him or direct such person
to be forthwith taken to, and produced before, the Special Judge and he shall be so
taken.

(5) Nothing in sub-section (3) or sub-section (4) shall preclude the

Special Judge or the Judicial Magistrate from remanding any such person to the
custody of an officer of Inland Revenue] holding investigation against that person
if such officer makes a request in writing to that effect, and the Special Judge or
the Judicial Magistrate, after perusing the record, if any, and hearing such person,
is of the opinion that for the completion of inquiry or investigation it is necessary
to make such order:

Provided that in no case the period of such custody shall exceed fourteen
days.

(6) When any person is arrested under this Act, an officer of Inland
Revenue shall record the fact of arrest and other relevant particulars in the register
specified in sub-section (10) and shall immediately proceed to investigate into the
charge against such person and if he completes the investigation within twenty-
four hours of his arrest, excluding the time necessary for journey as aforesaid, he
may, after producing such person before the Special Judge or the nearest Judicial
Magistrate, make a request for his further detention in his custody.

(7) While holding an investigation under sub-section (6), an officer of

Inland Revenue shall exercise the same powers as are exercisable by an officer in

84
 Sales Tax Act, 1990

charge of a police station under the Code of Criminal Procedure, 1898 (Act V of
1898), but such officer shall exercise such powers subject to the foregoing
provisions of this section while holding an investigation under this Act.

(8) If an officer of Inland Revenue, after holding an investigation as

aforesaid, is of the opinion that there is no sufficient evidence or reasonable ground
for suspicion against such person, he shall release him on his executing a bond,
with or without sureties, and shall direct such person to appear, as and when
required, before the Special Judge, and make a report to the Special Judge for the
discharge of such person and shall make a full report of the case to his immediate
superior.

(9) The Special Judge to whom a report has been made under sub-
section, (8) may, after the perusal of record of the investigation, and hearing the
prosecution, agree with such report and discharge the accused or, if he is of the
opinion that there is sufficient ground for proceedings against such person, proceed
with his trial and direct the prosecution to produce evidence.

(10) An officer of Inland Revenue empowered to hold investigation

under this section shall maintain a register to be called "Register of Arrests and
Detentions" in the prescribed form in which he shall enter the name and other
particulars of every person arrested under this Act, together with the time and date
of arrest, the details of the information received, the details of things, goods or
documents, recovered from his custody, the name of the witnesses and the
explanation, if any, given by him and the manner in which the investigation has
been conducted from day to day; and, such register or authenticated copies of its
aforesaid entries shall be produced before the Special Judge, whenever such
Officer is so directed by him.

(11) After completing the investigation, an officer of Inland Revenue

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

(12) Magistrate of the first class may record any statement or

confession during investigation under this Act, in accordance with the provisions
of Section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898).

(13) Without prejudice to the foregoing provisions of this section,

Board, with the approval of the Federal Minister-in-charge, may, by notification in
the official Gazette, authorize any other officer working under the Board to
exercise the powers and perform the functions of an officer of Inland Revenue
under this section, subject to such conditions, if any, that it may deem fit to impose.

85
 Sales Tax Act, 1990
524
[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.]
525
[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.

(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.

524
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.
525
Section 37D to 371 inserted by Finance Act, 2010.

86
 Sales Tax Act, 1990

(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 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

87
 Sales Tax Act, 1990

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 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).]
526
[38. Authorised officers to have access to premises, stocks, accounts
and records – (1) Any officer authorised in this behalf by the Board 527[or the
Commissioner 528[***]] shall have free access 529[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 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.

526
Section 38 Substituted by Finance Act, 1996.
527
Words inserted by Finance Act, 2010 w.e.f. June 5, 2010.
528
The words “or the Collector” were omitted by Finance Act, 2009.
529
Words inserted by Finance Act, 2020.

88
 Sales Tax Act, 1990

(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.]
530
[(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.]
531
[38A. Power to call for information.— The 532[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 533[:]]
534
[Provided that the 535[Commissioner] may require any regulatory
authority to provide information concerning the licenses and authorizations issued
by it.]
536
[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 537[an Assistant]
538
[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 539[Inland Revenue] considers necessary or relevant to the
audit, inquiry or investigation under the Act;
(b) allow the officer of 540[Inland Revenue] to take extracts from or
copies of such documents or records; and

530
New sub-section (4) inserted by Finance Act, 2020.
531
Section 38A inserted by Finance Act, 2004.
532
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.
533
Substituted for full stop by Finance Act, 2007
534
Proviso inserted by Finance Act, 2007.
535
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010
536
Section 38B inserted by Finance Act, 2006.
537
Substituted for “a Deputy” by Finance Act, 2011
538
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
539
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.
540
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010

89
 Sales Tax Act, 1990

(c) appear before the officer of 541[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 542[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 543[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 544[Inland Revenue].]
545
(5) Notwithstanding anything contained in any other law for the time
being in force, the Commissioner may, by notice in writing, require any Internet
Service Providers, Telecommunication Companies and Pakistan
Telecommunication Authority, to furnish subscriber's information pertaining to the
Internet Protocols in connection with any inquiry or investigation in cases of tax
fraud, as may be specified in such notice.
546
[39. ***]
547
[40. Searches under warrant.– (1) Where any officer of 548[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 549[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).]

541
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
542
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
543
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
544
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
545
Sub-section (5) inserted by Finance Act, 2025.
546
Section 39 omitted by Finance act, 1996.
547
Section 40 substituted by Finance Act, 2004.
548
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
549
The word and comma, inserted by the Finance Act, 2005

90
 Sales Tax Act, 1990
550
[40A. ***]
551
[40B. Posting of 6[Inland Revenue] Officer.– Subject to such conditions
and restrictions, as deemed fit to impose, the 552[Board], 553[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 554[.]
555
[omitted..]
556
[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, 557[bar code 558[production monitoring, video
analytics,] etc. in any such form, style and manner as may be prescribed by the
Board in this behalf.]
559
[(3) Such tax stamps, banderols, stickers, labels, barcodes 560[monitoring
equipment] 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.]
561
[(4) Notwithstanding anything contained in this Act or any other law
for the time being in force, the provisions of section 83C of the Customs Act, 1969
(IV of 1969) shall mutatis mutandis apply.; and
562
(5) [Omitted]
563
[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.

550
Section 40A omitted by Finance Act, 2006.
551
Section 40B inserted by Finance Act, 2003.
552
Substituted for “Central Board of revenue” by Finance Act, 2007
553
Words “or Chief Commissioner” omitted by Finance Act, 2018.
554
Colon omitted and full stop inserted by Finance Act, 2018.
555
Proviso and explanation omitted by Finance Act, 2018.
556
Section 40C inserted by Finance Act, 2013.
557
Word and comma inserted by Finance Act, 2015
558
After the expression “bar codes,”, the expression “production monitoring, video analytics,” inserted by Finance Act, 2025.
559
Sub-section (3) added by Finance Act, 2015.
560
After the expression “bar codes,”, the expression “monitoring equipment” inserted by Finance Act, 2025.
561
Sub-sections (4) substituted by Finance Act, 2025.
562
Sub-sections (5) omitted by Finance Act, 2025.
563
New Section “40D” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.

91
 Sales Tax Act, 1990

(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 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, 564[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.”;]
565
[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.]

566
[41. ***

42. ***]

564
Expression inserted by Finance Act, 2021.
565
New section 40E inserted by Finance Act, 2021.
566
Sections 41 and 42 omitted by Finance Act, 1996

92
 Sales Tax Act, 1990

Chapter-VIII
567
[APPEALS]

568
[43. ***
569
[43A. Omitted]

44. ***]
570
[45. ***]
571
[45A. Power of the Board 572[and 573[Commissioner]] to call for
records.-- (1) The Board may, of its own motion 574[, 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 575[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 576[this section] shall be initiated in a case
where an appeal under Section 577[45B] or Section 46 is pending.

(3) No order shall be made under this Section after the expiry of 578[five]
years from the date of original decision or order of the sub-ordinate officer referred
to in sub-section (1).
579
[(4) The 580[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 decision or order
passed by an officer of 581[Inland Revenue] subordinate to him, and pass such order
as he may deem fit.]]

567
Heading of chapter Adjudication substituted for cases by finance act 1996
568
Sections 43 and 44 omitted by Finance Act, 1996
569
New section 43A added through Tax Laws (Amendment) Act, 2024.
570
Section 43A omitted by Finance Act, 2025.
571
Section 45A added by Finance Act, 1993.
572
Substituted for “Collector and Collector (Adjudication)” by Finance Act, 2005. Earlier these were substituted for “and Collector” by Finance Act,
2003.
573
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.
574
Words inserted by Finance Act, 2015.
575
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
576
Substituted for “sub-section (1)” by Finance Act, 2008
577
Substituted for the figure “45” by Finance Ordinance, 2002
578
Substituted for “three” by Finance Ordinance, 2000
579
Sub-section (4) substituted by Finance Act, 2005
580
Substituted for the word “Collector” by Finance Act, 2010
581
Substituted for the words “Sales Tax” by Finance, Act, 2010

93
 Sales Tax Act, 1990

582
[45B. Appeals.– 583[(1) Any person, other than an State Owned
Enterprises (SOE), aggrieved by any decision or order passed under sections
10,11A,11D, 11E, 11F ,21,33, 34 and 66 of this Act, by an officer of Inland
Revenue may, within thirty days of the date of receipt of such decision or order
prefer appeal to the Commissioner Inland Revenue (Appeals):

Provided that an appeal preferred after the expiry of thirty days may be
admitted by the Commissioner Inland Revenue (Appeals) if he is satisfied that the
appellant has sufficient cause for not preferring the appeal within the specified
period:

Provided further that registered person shall have an option to directly file
an appeal before Appellate Tribunal Inland Revenue without availing right of
Appeal under this section.
9
[****]
584
[(1A) An appeal under sub-section (1) shall–

(a) be in the prescribed form;

(b) be verified in the prescribed manner;
(c) state precisely the grounds upon which the appeal is
made;
(d) be accompanied by the prescribed fee specified in sub-
section (1B); and
(e) be lodged with the Commissioner (Appeals) within the
time set out in sub-section (1).

[(1B) The prescribed fee shall be–

(a) in the case of an appeal against an assessment–

(i) where the appellant is a company, five thousand
rupees; or
(ii) where the appellant is not a company, two
thousand and five hundred rupees; and
(b) in any other case–
(i) where appellant is a company, five thousand
rupees; or
(ii) where the appellant is not a company, one
thousand rupees.]

582
Section 45B inserted by Finance Ordinance, 2002
583
Section 45B substituted by Finance Act, 2025.
584
New sub-sections (1A and 1B) inserted by Finance Act, 2020.

94
 Sales Tax Act, 1990
585 586
[ [(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 587[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 588[:]
589
[Provided that such order shall be passed not later than 590[one hundred
and twenty] days from the date of filing of appeal or within such extended period
as the 591[Commissioner] (Appeals) may, for reasons to be recorded in writing fix:

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

592
[sixty] days 593[:]]
594
[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.
595
[(4) ***]
596
[(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.]

585
Existing sub-section (1A) re-numbered as (1C) by Finance Act, 2020.
586
Inserted through Finance Act, 2013
587
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.
588
Colon inserted through Finance, Act, 2005
589
Two provisos inserted by Finance Act, 2005
590
Substituted for “ninety” by Finance Act, 2008.
591
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
592
Substituted for “one hundred and twenty” by Finance Act, 2009, earlier it was substituted for “ninety” by Finance Act, 2008.
593
Substituted for full stop by Finance Act, 2009
594
Proviso inserted by Finance Act, 2009
595
Sub-section (4) omitted y Finance Act, 2006.
596
New sub-section (5) inserted by Finance Act, 2020.

95
 Sales Tax Act, 1990

46. Appeals to Appellate Tribunal.– 597(1) Any person including

an officer of inland revenue not below the rank of Additional Commissioner
aggrieved by an order of the Commissioner (Appeals) under this Act or the rules
made thereunder; or any person other than SOE aggrieved by an order passed by
officer of inland revenue when second proviso to section 45B applies, may within
thirty days of the receipt of such order, prefer an appeal to the Appellate Tribunal:

Provided that where sub-section (11) of section 134A of Income Tax

Ordinance, 2001 (XLIX of 2001) shall apply, an SOE may prefer an appeal under
this sub-section.
598
[(2) The Appellate Tribunal may admit, hear and dispose of the appeal as
per procedure laid down in sections 599[131 and 132 of the Income tax Ordinance,
2001(XLIX of 2001, and rules made thereunder.]
600 601
[ (2A)***]
602
[(3) ***

(4) ***

(5) ***

(6) ***

(7) ***

(8) ***

(9) ***]
603
[47. Reference to the High Court.- 604(1) Within sixty days of communication
of the order of the Appellate Tribunal, the aggrieved person or the Commissioner
may submit a reference in the prescribed form along with a statement of the case
and complete record of the Appellate Tribunal to the High Court, stating any
question of law arising out of such order.

(2) Provisions of section 133 of the Income Tax Ordinance, 2001 (XLIX
of 2001) and rules made thereunder relating to a reference to the High Court shall,
mutatis mutandis, apply to references to the High Court under this Act.]

597
Sub-section (1) substituted by Finance Act, 2025
598
Sub-Section (2) substituted by Finance Act, 2009.
599
Substituted for “194A, 194B and 194C of the customs Act, 1969 (IV of 1969)” by Finance Act, 2010.
600
Sub Section (2A) inserted by Finance Act w.e.f. June 5, 2010.
601
Sub-section (2A) omitted by Tax Laws (Amendment) Act, 2024.
602
Sub-sections (3), (4), (5), (6), (7), (8) and (9) omitted by Finance Act, 2009.
603 Section 47 substituted by Tax Laws (Amendment) Act, 2024.
604
Sub-section (1) substituted by Finance Act, 2025.

96
 Sales Tax Act, 1990
605
[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.]
606
[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).]

605
Section 47A substituted by Tax Laws (Amendment) Act, 2024.
606
New section inserted by Finance Act, 2024.

97
 Sales Tax Act, 1990

Chapter-IX

RECOVERY OF ARREARS

48. Recovery of arrears of tax.--(1) 607[Subject to sub-section (1A),

where] any amount of tax 608[...] is due from any person, the officer of 609[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;
610
[(ca) require by a notice in writing any person to stop clearance of
imported goods or manufactured goods or attach bank accounts;]

(d) seal the business premises till such time the amount of tax is paid or-
recovered in full;

(e) attach and sell or sell without attachment any movable or immovable
property of the registered person from whom tax is due 611[; and]
612
(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 613[:]

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

607
Words etc. “levied, penalty imposed or demand raised under any bond or other instrument executed under this Act” omitted by Finance Ordinance,
2002.
608
Substituted for “where” by Finance Act, 2007
609
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.
610
Clause (ca) inserted by Finance Act, 1999.
611
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.
612
Word “may” omitted by Finance Act, 2007.
613
For the full stop a colon substituted and thereafter proviso added through Finance Act, 2017

98
 Sales Tax Act, 1990

recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal
under section 45B 614[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
615
[ten] per cent of the amount of tax due has been paid by the taxpayer.]
616
[(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 617[Inland Revenue] shall have the same powers
which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for
the purpose of recovery of an amount due under a decree.
618
[(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
619
[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.
620
[(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.]

614
Expression inserted by Tax Laws (Amendment) Act, 2024.
615
Word ten substituted by Finance Act, 2018.
616
Sub-section (1A) inserted by Finance Act, 2007.
617
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.
618
New sub-section inserted by Finance Act, 2021.
619
Section 49 Substituted by Finance Act, 1996
620
Sub-section (2) substituted through Finance Act, 2016.

99
 Sales Tax Act, 1990

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

621

“liquidator”) who is –

(a) a liquidator of a company;

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

Court;

(c) a trustee for a bankrupt; or

(d) a mortgagee in possession;

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

Pakistan, whichever occurs first, give written notice thereof to the
622
[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.

621
Section 49A inserted by Finance Act, 2004.
622
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.

100
 Sales Tax Act, 1990

(6) Where the proceeds of sale of any asset are less than the amount
notified by the 623[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.– 624[(1)] The Board may, by notification in

the official Gazette, make rules for carrying out the purposes of this Act 625[,
including rules for charging fee for processing of return, claims and other
documents and for preparation of copies thereof.]
626
[(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 627[or may be placed regularly on the official website
maintained by the Board.]
628
[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 629[matters such as grant of] authorization,
suspension and cancellation of authorization and for security of the information
transmitted or received through the computerized system.]
630
[(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.

623
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.
624
Brackets and figure inserted by Finance Act, 2008.
625
Comma and words inserted by Finance Act, 1994
626
Sub-section (2) inserted by Finance Act, 2008.
627
Words inserted by Finance Act, 2021.
628
Section 50A inserted by Finance Act, 2006.
629
Substituted for “their” by Finance Act, 2007
630
Sub-section (3) and (4) inserted by Finance Act, 2007.

101
 Sales Tax Act, 1990

(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.]
631
[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.
632
[(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 633[Inland
Revenue] in connection with any proceedings under this Act may, in writing,
authorise any person634[having such qualification as may be prescribed] to
represent him or appear on his behalf.

631
Section 50B inserted by Finance Act 2014
632
Sub section (3) inserted by Finance Act, 2004.
633
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.
634
Words inserted by Sales Tax (Amendment) Ordinance, 2000, dated September 5, 2000

102
 Sales Tax Act, 1990

635
[52A. e-intermediaries to be appointed.– (1) Subject to such conditions,
limitations and restrictions, the Board may, by a notification in the official Gazette,
appoint a person to electronically file return under Chapter V and such other
documents electronically, as may be prescribed from time to time, on behalf of a
person registered under section 14.

(2) A person registered under section 14 may authorize an e-

intermediary to electronically file return or any other documents, as specified in
sub-section (1).

(3) The return or such other documents filed by an e-intermediary on

behalf of a registered person shall be deemed to have been filed by that registered
person.

(4) Where this Act requires anything to be done by the registered person
and if such thing is done by an e-intermediary authorized by the registered person
under sub-section (2), unless the contrary is proved, shall be deemed to have been
done with the knowledge and consent of such registered person so that in any
proceedings under this Act, the registered person shall be liable as if the thing has
been done by him.

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

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

635
Section 52A inserted by Finance Act, 2006.

103
 Sales Tax Act, 1990

(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.
636
[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.]

[56. Service of orders; decisions etc. – (1) subject to this Act , any
637

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; 638[..]

(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)
639
[; 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
640
[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 or address, the notice is

636
Substituted vide Finance Ordinance, 2001
637
Section 56 substituted vide Finance Act, 2010
638
The words “or” omitted through Finance Act, 2017
639
Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017
640
The words substituted by Finance Act, 2020.

104
 Sales Tax Act, 1990

sent by registered [Post to any office or place of business of the

person in Pakistan; 641[..]

(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)
642
[; 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.]
643
[56A. Agreement for the exchange of information 644[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.
645
[(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.

641
The words “or” omitted through Finance Act, 2017
642
Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017
643
Sections 56A, 56B and 56C added by Finance Act, 2015
644
Words inserted by Finance Act, 2021.
645
New sub-section (1A) inserted by Finance Act, 2021.

105
 Sales Tax Act, 1990

646
[(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.]
647
[56AB. Real-time access to information and databases.—(1)
Notwithstanding anything contained in any law for the time being in force,
including but not limited to the National Database and Registration Authority
Ordinance, 2000 (Ordinance VIII of 2000), and the Emigration Ordinance, 1979
(Ordinance XVIII of 1979), arrangements shall be made to provide real-time
access of information and database to the Board in the prescribed form and manner
by–
(a) the National Database and Registration Authority with respect
to information pertaining to National Identity Card (NIC),
Pakistan Origin Card, Overseas Identity Card, Alien
Registration Card, and other particulars contained in the
Citizen Database;
(b) the Federal Investigation Agency and the Bureau of Emigration
and Overseas Employment with respect to details of
international travel;
(c) the Islamabad Capital Territory and Provincial and local land
record and development authorities with respect to record-of-
rights including digitized edition of record-of-rights, periodic
record, record of mutations and report of acquisition of rights;
(d) the Islamabad Capital Territory and Provincial Excise and
Taxation Departments with respect to information regarding
registration of vehicles, transfer of ownership and other
associated record;
(e) all electricity suppliers and gas transmission and distribution
companies with respect to particulars of a consumer, the units
consumed and the amount of bill charged or paid:

Provided that where the connection is shared or is

used by a person other than the owner, the name and NIC of the
owner and the user shall also be furnished:

Provided further that all electricity suppliers and

gas transmission and distribution companies shall make
arrangements by the 1st day of January, 2021 for allowing
consumers to update the ratio of sharing of a connection or the
particulars of users, as the case may be; and

(f) any other agency, authority, institution or organization, notified

by the Board.

646
New sub-section (3) inserted by Finance Act, 2021.
647
New section 56AB inserted by Finance Act, 2020.

106
 Sales Tax Act, 1990

(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.]

[56B. Disclosure of information by a public servant.─ (1) Any

648

information acquired under any provision of this Act shall be confidential and no
public servant 649[, expert or auditors appointed under section 32B] shall disclose
any such information, except as provided under section 216 of the Income Tax
Ordinance, 2001 (XLIX of 2001).

(2) Notwithstanding anything contained in sub-section (1) and the

Freedom of Information Ordinance, 2002 (XCVI of 2002), any information
received or supplied in pursuance of bilateral or multilateral agreements with
government of foreign countries for exchange of information under section 56A
shall be confidential.]

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

650

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.]
651
[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

648
Section 56B substituted through Finance Act, 2016.
649
expression “, expert or auditors appointed under section 32B” inserted by Finance Act, 2025.
650
Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021.
651
Section 57 is substituted by Finance Act, 2013.

107
 Sales Tax Act, 1990

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.

(4) No order under sub-section (1) shall be made after five years from
the date of the order sought to be rectified.]
652
[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.]
653
[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;

652
Section 58 substituted by Finance Act, 2019.
653
Section 58A and 58B inserted by Finance Act, 2008

108
 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.

(3) 654[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;

654
The expression substituted by and Explanation added by Finance Act, 2020.

109
 Sales Tax Act, 1990

(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 655[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.

(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 656[Commissioner] a certificate stating the amount to be so retained

655
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.
656
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010

110
 Sales Tax Act, 1990

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.

(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.]
657
[58C. Inspection of audit firm– Where in case of a registered person,
whose accounts are subject to audit under the Companies Act, 2017 (XIX of 2017),
Chief Commissioner Inland Revenue has reason to believe that the audited
accounts do not reflect the true and fair view of sales and purchases and related
sales tax liability, he or she may with the approval of the Board, refer the audit
firm, who has issued audit certificate to that registered person, for inspection to
Audit Oversight Board.
658
[59. Tax paid on stocks acquired before registration.– The tax 659[. . .]
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
660
[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.]

657
Section 58C inserted by Finance Act, 2025
658
Section 59 inserted by Finance Act, 1999. Earlier it was omitted by Finance Act, 1997. Earlier it was substituted through Finance Act, 1996.
659
Commas and words “, other than the turnover tax” omitted by Finance Act, 2004.
660
Substituted for “section 18” by Finance Act, 2004

111
 Sales Tax Act, 1990

661
[60. Powers to deliver certain goods without payment of tax.– Subject
to such conditions, limitations or restrictions as it thinks fit to impose, 662[Federal
Government] may authorise the 663[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;
664
[(ii) registered manufacturer-cum-exporters who import raw materials
and intermediary products for further manufacture of goods meant
for export;]
665
[(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 666[...] 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.
667
[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:

661
Section 60 Substituted by Finance Act, 1998.
662
Words substituted by Finance Act, 2018.
663
Substituted for “delivery” by Finance Act, 1999
664
Clause (ii) substituted by the Finance Act, 1999.
665
Clause (iii) omitted by Finance Act, 1999.
666
Words “the importation of” omitted by Finance Ordinance, 2002
667
Section 61A inserted by Finance Act, 2008.

112
 Sales Tax Act, 1990

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 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 668[Federal Government] is satisfied that inadvertently and as a general
practice: –

(a) tax has not been charged in any area on any supply which was
otherwise taxable, or according to the said practice the amount
charged was less than the amount that should have actually been
charged;

(b) the registered person did not recover any tax prior to the date it was
discovered that the supply was liable to tax; and

(c) the registered person started paying the tax from the date when it was
found that the supply was chargeable to tax;

It may, by a notification in the official Gazette, direct that the tax not
levied or short levied as a result of that inadvertent practice, shall not
be required to be paid for the period prior to the discovery of such
inadvertent practice.

668
Words substituted by Finance Act, 2018.

113
 Sales Tax Act, 1990

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 669[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
670
[:]
671
[Provided that in a case where a registered person did not deduct input
tax within the relevant tax period, the 672[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]:]
673
[ Provided 674[further] that in a case where the refund has become due
on account of any decision or judgement of any officer of 675[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 Tribunal676[:]]

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.]
677
[Provided also that no refund shall be admissible under this section if
incidence of tax has been passed directly or indirectly to the consumer.]
678
[67. Delayed Refund.– Where a refund due under section 10 is not made
within 679[the time specified in section 10 from the date] of filling of 680[refund
claim], there shall be paid to the claimant in addition to the amount of refund due
to him, a further sum equal to 681[KIBOR] per annum of the amount of refund due,
from the date following the expiry of [the time specified 682[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

669
Words inserted by Finance Act, 1998.
670
Substituted for the full-stop by Finance Ordinance, 2001
671
Proviso inserted by Finance Ordinance, 2002.
672
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.
673
Proviso inserted by Finance Ordinance, 2001.
674
Word inserted by Finance Ordinance, 2002.
675
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.
676
Substituted for full stop by Finance Act, 2005
677
Proviso inserted by Finance Act, 2011.
678
Section 67 substituted by Finance Act, 1996.
679
Substituted for “thirty days” by Finance Act, 1997
680
Substituted for “return” by Finance Act, 2007
681
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.
682
Substituted for the words and figures “in section 10 from the date” by Finance Act, 2007.

114
 Sales Tax Act, 1990

such additional amount shall not apply till the investigation of the claim is
completed and the claim is either accepted or rejected 7[:]
683
[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.]
684
[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 685[ ] 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 686[ ] Limited, hereinafter referred to as the company, incorporating the
details of refund claimants and the amount of refund determined as payable to each
for issuance of sales tax refund bonds, hereinafter referred to as the bonds, of the
same amount.

(3) The bonds shall be issued in values in multiples of one hundred

thousand rupees.

(4) The bonds so issued shall have a maturity period of three years and
shall bear annual simple profit at ten per cent.

(5) The bonds shall be traded freely in the country’s secondary markets.

(6) The bonds shall be approved security for calculating the statutory
liquidity reserve.

(7) The bonds shall be accepted by the banks as collateral.

(8) There shall be no compulsory deduction of Zakat against the bonds

and Sahib-e-Nisab may pay Zakat voluntarily according to Shariah.

683
Colon substituted for full stop and new proviso inserted by Finance Act, 2021.
684
New section 67A inserted by Finance Supplementary (Second Amendment) Act, 2019
685
The word “private” omitted by Finance Act, 2019.
686
The word “private” omitted by Finance Act, 2019.

115
 Sales Tax Act, 1990

(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 687[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 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.
688
[69. Issuance of duplicate of sales tax documents.– An officer of
689
[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.
690
[71. Special procedure.– 691[(1)] 692[The Board] may, by notification in
the official Gazette, prescribe special procedure for scope and payment of tax,
registration, book keeping and invoicing requirements and returns, etc. in respect
of such supplies as may be specified therein.]
693
[(2) ***]

687
The expression substituted for the words “Federal Government” by Finance Act, 2019.
688
Section 69 substituted by the Finance Act, 2008.
689
Substituted for the words “Sales Tax not below the rank of Assistant Collector” by the Finance Act, 2010
690
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.
691
Section 71 re-numbered as sub-section (1) by Finance Act, 1999
692
The expression “Notwithstanding anything contained in this Act, the Federal Government” substituted through Finance Act, 2019.
693
Sub-section (2) omitted by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999. Earlier inserted by Finance Act, 1999.

116
 Sales Tax Act, 1990
694
[(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.]
695
[72. Officers of 696[Sales Tax] to follow Board's orders, etc.– All
officers of 9[Inland Revenue] and other persons employed in the execution of this
Act shall observe and follow the orders, instructions and directions of the Board:
Provided that no such orders, instructions or directions shall be given so
as to interfere with the discretion of [officers of 6[Inland Revenue] in the exercise
of their quasi-judicial functions.]
697
[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.]
698
[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.
699
[(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.]

694
Sub-section (3) inserted by Finance Act, 1999.
695
Sub-section (3) inserted by Finance Act, 1999.
696
Section 72 inserted by Finance Act, 1998.
9 Substitued for the Words “Sales Tax” by Finance Act, 2010.

697
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.
698
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.
699
New sub-section (1A) added through Finance Act, 2019.

117
 Sales Tax Act, 1990
700
[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.]
701
[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 or a sales tax authority committing
fraud, corruption, misconduct, or involved in concealment or evasion of taxes.]
702
[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 703[in
aggregate to a single supplier in a tax period], excluding payment against a utility

700
Section 72C substituted by Finance Act, 2013.
701
Section 72D added by Finance Act, 2015.
702
Section 73 substituted by Finance Act, 2004. Earlier it was substituted by Finance Act, 2003, which was
inserted by Tax Laws (Amendments) Ordinance, 1999.
703
Words inserted by Finance Act, 2024.

118
 Sales Tax Act, 1990

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 704[:]
705
[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.]
706
[Provided further that adjustments made by a registered person in respect
of amounts payable and receivable to and from the same party shall be treated as
payments satisfying the provisions of this sub-section subject to following
conditions, namely:–
(a) sales tax has been charged and paid by both parties under
the relevant provisions of this Act and rules prescribed
thereunder, wherever applicable; and
(b) the registered person has sought prior approval of the
Commissioner before making such adjustments.]

(2) The buyer shall not be entitled to claim input tax credit, adjustment
or deduction, or refund, repayment or draw-back or zero-rating of tax under this
Act if payment for the amount is made otherwise than in the manner prescribed in
sub-section (1), provided that payment in case of a transaction on credit is so
transferred within one hundred and eighty days of issuance of the tax invoice.

(3) The amount transferred in terms of this section shall be deposited in

the business bank account of the supplier, otherwise the supplier shall not be
entitled to claim input tax credit, adjustment or deduction, or refund, repayment or
draw-back or zero-rating of tax under this Act.

Explanation— For the purpose of this section, the term “business bank
account” shall mean a bank account utilized by the registered person for business
transactions, declared to the 707[Commissioner] in whose jurisdiction he is
registered 708[through Form STR-1 or change of particulars in registration
database.]]

704
Substituted for full stop by Finance Act, 2005
705
Proviso inserted by Finance Act, 2005.
706
New proviso inserted by Finance Act, 2021.
707
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.
708
Words inserted by Finance Act, 2013.

119
 Sales Tax Act, 1990

[“(4) A registered 710[person] shall not be entitled to deduct input tax

709

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

supplies exceeding, in aggregate, 711[the amount in a financial year or in a tax
period, as may be prescribed by the Board, with the approval of Federal
Government] as are made to certain person who is not a registered person under
this Act:

Provided that the aforesaid shall not apply to supplies made to.-
(a) Federal / provincial / local Government departments,
authorities, etc. not engaged in making of taxable
supplies;
(b) Foreign Missions, diplomats and privileged persons;
712
[***]
(c) all other persons not engaged in supply of taxable
goods; 4[and]
713
(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.]
714
[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 715[Board]
may, 716[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 717[:

Provided further that regardless of anything stipulated in this section, or

any provision of this Act, or any other applicable law currently in force, and
notwithstanding any decision, order or judgement issued by any forum, authority
or court, the maximum period of extension under this section by the Board or the
Commissioner, as the case may be, shall not exceed two years in aggregate:
Provided also that where there are reasons to believe that significant loss
to exchequer or taxpayer has been caused by an act of omission or commission by
the registered person or by any authority mentioned in section 30, a committee of

709
New sub-section “(4)” inserted through Tax Laws (Amendment) Act, 2020.
710
Word substituted by Finance Act, 2020.
711
the expression “the amount in a financial year or in a tax period, as may be prescribed by the Board, with the approval of Federal Government”
substituted by Finance Act, 2025.
712
Word “and” omitted and the word “and” inserted by Finance Act, 2020.
713
New clause (d) inserted by Finance Act, 2020.
714
Section 74 added by the Finance Ordinance, 2002.
715
Substituted for the words “Central Board of Revenue” by Finance Act, 2007.
716
Words added by Finance Act, 2022.
717
In section 74, in the proviso, for the full stop at the end, a colon substituted and thereafter new provisos inserted by Finance Act, 2025

120
 Sales Tax Act, 1990

members as notified by the Board may further condone the limitation specified for
a period as it may deem fit, after providing a reasonable opportunity of being heard
to the registered person concerned.

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.]
718
[74A. Validation.– 719[(1) All notifications and orders issued and notified
in exercise of the powers conferred upon the Federal Government, before the
commencement of Finance Act, 720[2018] shall be deemed to have been validly
issued and notified in exercise of those powers.]
721
[(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.]

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.]
722
[76. Fee and service charges.– 3[(1)] The 723[“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.]
724
[(2) The Board may authorize and prescribe the manner in which fee and
service charges collected under sub-section (1) shall be expended.]

718
Section 74A inserted through Finance Act, 2017
719
Existing provision numbered as sub-section (1) by Finance Act, 2018.
720
Figure substituted by Finance Act, 2018.
721
New sub-section (2) added by Finance Act, 2018.
722
New section 76 added through Finance Act, 2019.
723
Words “Federal Government” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
724
Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021.

121
 Sales Tax Act, 1990

725
[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.]

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

725
New section 77 added by Finance Act, 2022.

122
 Sales Tax Act, 1990

SCHEDULES

The
FIRST SCHEDULE
726
[***]

The
SECOND SCHEDULE
727
[***]

728
[The
THIRD SCHEDULE
See 729[clause (a)] of sub-section (2) of section 3]

726
The first schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997.
727
The Second Schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997.
728
The Third Schedule Substituted by Finance Act, 1998, earlier it was inserted by Finance Act, 1996.
729
Substituted for the words, brackets and letter “clause (c)” by Finance Ordinance, 2002

123
 Sales Tax Act, 1990

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
730
2 Ice Cream. [2105.0000]
3 Aerated waters or beverages. 22.01 and 20.02
4 Syrups and squashes. Respective headings
5 Cigarettes. 2402.2000
731
[6 Toilet soap 3401.1100 and 3401.2000]
732 733
[7 Detergents [Respective heading]
8 Shampoo 3305.1000
9 Toothpaste 3306.1010
10 Shaving cream 3307.1000
11 Perfumery and cosmetics Respective sub-headings of 33.03
and 33.04.]
734
[12 ***
13 ***]
735
[14 Tea Respective sub-headings of 09.02
15 Powder drinks 21.06
16 Milky drinks 2106.9090]
736
[17 Toilet paper and tissue paper 4818.1000 and 4818.2000]
737
[18. Spices sold in retail packing 09.04, 09.06, 09.08 and 09.10
bearing brand names and
trade marks
738
[19. ***
20. ***]
21. Shoe polish and shoe cream 3405.1010]

***]
5
[22.
739
[23. ***
24. ***
25. ***
26. ***
27. ***

730
Substituted for the figure “21.05” through Finance Act, 2017
731
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.
732
Serial No.7 to 11 and entries relating thereto added by Finance Act, 2005
733
Expression substituted by Finance Act, 2022.
734
Serial No.12 to 13 and entries relating thereto omitted by Finance Act, 2008
735
Serial No.14 to 16 and entries relating thereto added by Finance Act, 2005
736
Serial No.17 and entries relating thereto added by Finance Act, 2005
737
Serial No.18 to 21 and entries relating thereto added by Finance Act, 2006
738
Serial No.19 to 20 and entries relating thereto omitted by Finance Act, 2008
739
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.

124
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No. Schedule to the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
28. ***
29. ***
30. ***
31. ***]
740
[32. ***]
33. Cement sold in retail Respective heading
packing
34. ***
35. ***]
741
[36. ***]]
742
[37. Mineral/bottled water Respective headings]
743[38.
Household electrical goods, Respective headings
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, enamels, Respective headings
pigments, colours,
varnishes, gums, resins,
dyes, glazes, thinners,
blacks, cellulose lacquers
and polishes sold in retail
packing
42.
Lubricating oils, brake Respective headings
fluids, transmission fluid,

740
Serial No. 32 and entries relating thereto omitted by Finance Act, 2022.
741
Serial Nos. 22 and 36 and entries relating thereto omitted Notification No. S.R.O. 681(I)/2013, dated 26 th July, 2013.
742
New Serial number added through Finance Act, 2016
743
Serial numbers 38 up to 49 and entries relating thereto added through Finance Act, 2019.

125
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No. Schedule to the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
and other vehicular fluids
sold in retail packing.
43.
Storage batteries excluding Respective headings
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 packing, Respective Headings]
excluding those sold to
automotive manufacturers or
assemblers
744[50.
[***] omitted with effect Respective heading]
from the 1st day of
December, 2021
745
[51. DAP Respective Headings]
746
52. Import of pet food including 2309.1000
of dogs and cats sold in retail
packing
53. Import of coffee sold in retail
0901.1100, 0901.1200, 0901.2100,
packing 0901.2200, 0901.9000, 2101.1120
54 Import of chocolates sold in 1704.9010, 1806.2090,
retail packing 1806.3100, 1806.3200,
1806.9000
55. Import of cereal bars sold in 1904.1010, 1904.1090,
retail packing 1904.2000, 1904.3000,
1904.9000.”;

The
FOURTH SCHEDULE
747
[***]

744
Serial number 50 omitted by Finance (Supplementary) Act, 2022 w.e.f 1 st day of December, 2021.
745
New serial number 51 added by Finance Act, 2024.
746
Serial number 52,53,54 and 55 and entries relating thereto in columns (2) and (3) inserted by Finance Act, 2025.
747
Fourth Schedule omitted by Finance Act, 1998.

126
 Sales Tax Act, 1990
748
[The
FIFTH SCHEDULE
[See section 4]

Serial Description
No.
(1) (2)
749
[1. ***]
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.]
750
[3. ***]omitted

751
[4. ***]]

752
[5. Supplies of raw materials 753[, components and goods for further]
manufacture of goods in the Export Processing Zones.]
754
[6. *****]
754
[6A. ***]omitted
755
[7. Supplies made to exporters under the Duty and Tax Remission
Rules, 2001 subject to the observance of procedures, restrictions
and conditions prescribed therein.]
756
[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 757[Board] may impose. ]
758
[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

748
Fifth Schedule added by Finance Act, 1996.
749
S. Nos. 1 and 6 and entries relating thereto omitted by Finance Act, 2021.
750
Serial number 3 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022.
751
Serial No. 4 and entry relating thereto omitted by Finance Act, 2012
752
Serial No. 5 added by the Finance Act, 1997.
753
Substituted for the words “and components for” by the Sales Tax (Amendment) Ordinance, 1999
754
Serial number(s) 6A and 9 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022.
755
Serial No. 7 added by Finance Ordinance, 2001
756
Serial No. 8 and entries relating thereto inserted by Finance Act, 2004
757
Substituted f Revenue” by Finance Act, 2007
758
New serial No. 8A added by the Finance Act, 2023

127
 Sales Tax Act, 1990

Serial Description
No.
(1) (2)
759
[10. ******]
6
[11. ****]
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 760[prescribed by the
Board]:--
761
[(i) to (ix) [......]]
762
[(x) ...

(xi) ...

(xii) ...

(xiii) ...

(xiv) ...

(xv) ...

(xi) ...]
763
(xvii) [***]

(xviii) 764[***]

(xix) 765[***] omitted.

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

759
S. Nos. 10 and 11 and entries relating thereto omitted by Finance Act, 2021.
760
Substituted for the word “specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007” through Finance Act, 2019.
761
Serial numbers (i) to (ix) omitted through Finance Act, 2016.
762
Clauses (x) to (xvi) omitted by Finance Act, 2015
763
Clauses (xvii), (xx), (xxi), (xxii), (xxiv), (xxv), (xxvi) and (xxvii) of serial number 12 omitted by Finance Act, 2024.
764
Serial number (xviii) omitted through Finance Act, 2016.
765
Clause (xix) omitted by Finance (Supplementary) Act, 2022.

128
 Sales Tax Act, 1990

Serial Description
No.
(1) (2)
(xxvii) [***]

766
[13. Supplies of raw materials, components and goods for further
manufacture of goods in the Gwadar Free Zone and export thereof,
provided that in case of supply to tariff area of Pakistan, tax shall be
charged on the value assessed on the Goods Declaration for import

14 Supplies of locally manufactured plant and machinery of the

following specifications, to manufacturers in the Gwadar Free
Zone, subject to the conditions, restrictions and procedure given
below, namely:−
(i) plant and machinery, operated by power of any description,
as is used for the manufacture or production of goods by
that manufacturer.
(ii) apparatus, appliances and equipment specifically meant or
adapted for use in conjunction with the machinery specified
in clause (i).
(iii) mechanical and electrical control and transmission gear,
meant or adapted for use in conjunction with machinery
specified in clause (i).
(iv) parts of machinery as specified in clauses (i), (ii) and (iii),
identifiable for use in or with such machinery.
Conditions, restrictions and procedures:−
(a) the supplier of the machinery is registered under the
Act;
(b) proper bill of export is filed showing registration
number;
(c) the purchaser of the machinery is an established
manufacturer located in the Gwadar Free Zone and holds a
certificate from the Gwadar Port Authority to that effect;
(d) the purchaser submits an indemnity bond in proper form to
the satisfaction of the concerned Commissioner Inland
Revenue that the machinery shall, without prior permission
from the said Commissioner, not be sold, transferred or
otherwise moved out of the Gwadar Free Zone before a
period of five years from the date of entry into the Zone;

766
New serial numbers 13 and 14 inserted by Finance Act, 2020 shall have effect from the 1st June, 2020.

129
 Sales Tax Act, 1990

Serial Description
No.
(1) (2)
(e) if the machinery is brought to tariff area of Pakistan outside
Gwadar Free Zone, sales tax shall be charged on the value
assessed on the Goods Declaration for import; and
(f) breach of any of the conditions specified herein shall attract
legal action under the relevant provisions of the Act,
besides recovery of the amount of sales tax along with
default surcharge and penalties involved.]
767
[15. ***]omitted
768
16. [***] omitted
769
[17. [***] omitted
[18. ***]omitted
770
[19. ***]
20. Petroleum Crude Oil (PCT heading 2709.0000)].
771
[21. [***] omitted

767
Serial numbers 15 and 18 omitted by Finance (Supplementary) Act, 2022.
768
Serial number(s) 16, 17 and 21 omitted by Finance Act, 2024.
769
Serial numbers 17 substituted by Finance Act, 2022.
770
Serial number 19 omitted by Finance Act, 2022.
771
New serial number 21 added by Finance Act, 2022.

130
 Sales Tax Act, 1990
772
[The
SIXTH SCHEDULE
[See section 13(1)]

Table-1
(Imports or Supplies)

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
773
[1. ***] omitted

[2. ***] omitted

[3. ***] omitted
774
[4. ***

5. ***

6. ***

7. ***

8. ***

9. ***

10. ***]

[11. ***] omitted

[12. ***] omitted
775
13. ***] omitted
14. Pulses. 0713.1000, 776[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
777
[15. ***]

772
Sixth Schedule substituted by Finance Act, 2005. Earlier it was substituted by Finance Act, 1998. Originally it
was inserted by Finance Act, 1996.
773
Serial number(s) 1,2,3,11 and 12 omitted by Finance (Supplementary) Act, 2022.
774
S. Nos. 4 to10 and entries relating thereto omitted by Finance Act, 2006
775
Serial number 13 omitted by Finance Act, 2024.
776
Substituted for the figure and comma “0713.2000” by the Finance Act, 2009
777
Serial number 15 omitted by Finance Act, 2024.

131
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
16. Red chillies excluding those sold 779[0904.2110] and
778
[under] brand names and 780[0904.2210]
trademarks.
17. Ginger excluding those sold 782[09.10]
781
[under] brand names and
trademarks.
18. Turmeric excluding those sold 0910.3000
783
[under] brand names and
trademarks.
784
[19. Rice, wheat, wheat and meslin Respective heading]
flour
785
[20. ***]
786
[21. ***] omitted
787
[22. ***]
[23. ***] omitted
773
[24. ***]
788
[25. ***]
795
[26. ***]
795
[27. ***]
789
[28. ***]
795
[29. ***]
790
[29A. ***
9B. ***]
795
[29C. ***]
791
[30. ***]

778
Word substituted by Finance Act, 2023
779
Substituted for PCT heading “0904.2010” by the Finance Act, 2012
780
Substituted for PCT heading “0904.2020” by the Finance Act, 2012
781
Word substituted by Finance Act, 2023
782
Substituted for the figure “0910.1000” through Finance Act, 2017
783
Word substituted by Finance Act, 2023
784
Serial number 19 substituted by Finance (Supplementary) Act, 2022.
785
Serial number 20 omitted by Finance (Supplementary) Act, 2022.
786
Serial number(s) 21and 23 omitted by Finance (Supplementary) Act, 2022.
787
Serial numbers 22,24,26, 27, 29 and 29C omitted by Finance Act, 2021.
788
S. No. 25 and the entries relating thereto omitted by the Finance Act, 2013
789
Serial No. 28 and entries relating thereto omitted by Finance Act, 2015
790
S. Nos. 29A and 29B omitted by the Finance Act, 2011
791
S. No. 30 omitted by the Finance Act, 2011

132
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
792
31. Holy Quran, complete or in parts, [4901.9910, 8523.2100,
with or without translation; 8523.2910,
Quranic Verses recorded on any 8523.2990, 793[8523.4910],
794
analogue or digital media; other [8523.4920],
795
Holy books. [8523.4190]
[...], [...], 8523.4190,
8523.5910, 8523.5990,
8523.8010,
8523.8020 and 8523.8090]
796
[32. Newsprint and books but Respective headings]
excluding brochures, leaflets and
directories
797
33. Currency notes, bank notes, [49.07]
shares, stocks and bonds.
798
[34. ***
35. ***]
799
[36. ***]
800
[37. ***]
801
38. Monetary gold. [7108.1390] 802[and
7108.2090]
803
[39. ***]
804
[40. ***]
805
[41. ***
42. ***
43. ***
44. ***]
45. Dextrose and saline infusion 9018.3910, 9018.3920,
giving sets 806[***] along with 9021.3100, 807[9021.3900]
empty non-toxic bags for infusion and 808[Respective
solution, Dextrose and saline headings]
infusion giving sets, Artificial

792
Substituted for the words and figures “4901.9910 and respective headings of 85.24” by the Finance Act, 2007
793
Substituted for PCT heading “8523.4010” by Finance Act, 2012
794
Substituted for PCT heading “8523.4030” by Finance Act, 2012
795
Substituted for PCT heading “8523.4090” by Finance Act, 2012
796 Serial number 32 substituted by Finance Act, 2022.
797
Substituted for the figure “4907.0000” by Finance Act, 2017
798
S. Nos. 34 & 35 omitted by the Finance Act, 2011
799
Serial number 36 omitted through Finance Act, 2019.
800
Serial number 37 omitted through Finance Act, 2019.
801
Substituted for the figure “7108.2000” by Finance Act, 2017
802
The word and figures added by the Finance Act, 2007
803
S. No. 39 and entries relating thereto omitted by Finance Act, 2015
804
S. No. 40 omitted by the Finance Act, 2006
805
S. Nos. 41 to 44 omitted by the Finance Act, 2011
806
The word “imported” omitted by the Finance Act, 2007
807
Substituted for the figures “9201.3900” by the Finance Act, 2007
808 Words substituted by Finance Act, 2022.

133
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
parts of the body, Intra-Ocular
lenses and Glucose testing
equipment.
809
[46. ***]
47. Import of articles of household and 99.05
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 under 99.03
grants-in-aid for which a specific
consent has been obtained from the
810
[Board]; supplies and imports
under agreements signed by the
Government of Pakistan before the
30th June, 1996, provided the
agreements contained the
provision for exemption of tax at
the time of signing of agreement.
811
[49. ***] omitted
[50. ***] omitted
[51. ***] omitted
[52. ***] omitted

809
Serial number 46 omitted by Finance (Supplementary) Act, 2022.
810
Substituted for the words “Central Board of Revenue” by Finance Act, 2007
811
Serial number(s) 49 to 57 and 58 omitted by Finance (Supplementary) Act, 2022.

134
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
[52A. ***] omitted
[53. ***] omitted
[54. ***] omitted
[55. ***] omitted
812
[56. Omitted.]
[57. ***] omitted
[58. ***] omitted

59. Artificial kidneys, eye cornea, 99.24 815[, 99.25 816[,99.37]

hemodialysis machines, and 99.38]
hemodialyzers, A.V. fistula
needles, hemodialysis fluids 813[,]
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, 814[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).
817
[60. ***] omitted

812
Serial No. 56 and entries relating thereto omitted by Finance Act, 2015
813
Substituted for the word “and” by the Finance Act, 2008
814
The comma and words inserted by the Finance Act 2014
815
Substituted for the word and figures “and 99.25” by the Finance Act, 2008
816
The comma and figure inserted by the Finance Act 2014
817
Serial number(s) 60, 61 and 63 omitted by Finance (Supplementary) Act, 2022.

135
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
[61. ***] omitted
818
[62. ***]
[63. ***] omitted
819
[64. ***
65. ***
66. ***
67. ***
68. ***
69. ***
70. ***.]
820
[71. ***] omitted
[72. ***] omitted
821
[73. ***]
73A. ***]
74. ***]
75. ***]
76. ***]
77. ***]
78. ***]
79. ***]
80. ***]
[81. ***] omitted
82. ***]
83. ***]
[84. ***] omitted
822
[85. ***]
823
86. ***] omitted
87. ***] omitted
88. ***] omitted
89. Exercise books 4820.2000
90. ***] omitted
91. ***]
[92. ***] omitted
93 ***]
94. Wheelchairs 8713.1000 and 8713.9000

818
S. No. 62 omitted by the Finance Act, 2011
819
S. Nos. 64 to 70 omitted by the Finance Act, 2011
820
Serial number(s) 71, 72, 81, 84 and 92 omitted by Finance (Supplementary) Act, 2022.
821
Serial numbers 73 to 80, 82, 83 and 85 omitted by Finance Act, 2021.
822
Serial numbers 85, 91 and 93 omitted by Finance Act, 2021.
823
Serial numbers 86, 87, 88, 90 and 96 omitted by Finance Act, 2024.

136
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
824
[95. ***]
96. ***] omitted
825
97. ***] omitted
98. ***] omitted
826
[99. ***] omitted
100. Construction materials to Respective headings
827
[Gwadar] Export processing
Zone’s investors and to Export
Processing Zone 3[Gwadar] for
development of Zone’s
infrastructure
828
[100A Materials and equipment Respective Headings
829
[(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 Bunker Oils
bought and sold to the ships calling
on/visiting 3[Gwadar] Port, 830[by
the aforesaid operating
companies] having Concession
Agreement with the Gwadar Port
Authority, for a period of forty
year, subject to the following

824
Serial number 95 and entries relating thereto is omitted through Finance Act, 2019.
825
Serial numbers 97 and 98 omitted by Finance Act, 2024.
826
Serial number 99 omitted by Finance (Supplementary) Act, 2022.
827
Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017
828
New serial numbers 100A & 100B added through Finance Act, 2016.
829
The expression inserted through Finance Act, 2017
830 The expression inserted by Finance Act, 2020 shall have effect from the 1 st June, 2020.

137
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
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 831[Gwadar] 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

831
Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017

138
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
Customs Computerized
System on daily basis,
whereas entry of the data
obtained from the customs
stations which have not yet
been computerized shall be
made on weekly basis,
provided that this condition
shall not apply to ship
bunker oils; and
(iii) The goods so imported
832
[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 hold
Concession
Agreement;

832
The expression inserted and words substituted by Finance Act, 2020 shall have effect from the 1 st June,
2020.

139
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
(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
833
[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 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.

833
Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017

140
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
All three copies of the
said signed monthly
statement shall be got
verified by the
registered person from
the person authorized
to receive the supplies
in the office of
operating company,
confirming that
supplies mentioned in
the monthly statement
have been duly
received;
(v) after verification from
the operating
company, original
copy of the monthly
statement will be
retained by the
registered person,
duplicate by the
operating company
and the triplicate
provided by the
registered person to
the Collector of Sales
Tax having
jurisdiction, by
twentieth day of the
month following the
month in which
exempt supplies to the
operating companies
were made; and
(vi) the registered person
making the exempt
supplies shall keep the
aforesaid record for
presentation to the
sales tax department as
and when required to
do so.

141
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
1
[100B] Supplies made by the businesses Respective headings
to be established in 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.
834
[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)]
835
[100D Machinery, equipment, materials Respective headings
and goods imported either for
exclusive use within the limits of
Gwadar Free Zone, or for making
exports therefrom, subject to the
conditions that such machinery,
equipment, materials and goods,
are imported by investors of
Gwadar Free Zone, and all the
procedures, limitations and
restrictions as are applicable on
such goods under the Customs

834
New S.No. 100C and entries relating thereto inserted through Finance Act, 2017
835
New serial number 100D inserted by Finance Act, 2020 shall have effect from the 1st June, 2020.

142
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
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.]
836
[101. ***]
837
[102. ***] omitted
838
[103. ***]
[104. ***] omitted
[105. ***] omitted
839
[106. ***]
107. Import and supply of iodized salt 2501.0010
bearing brand names and
trademarks whether or not sold in
retail packing.
[108. ***]
840
[109. ***] omitted
[110. ***] omitted
111. 841
[…….] 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)

836
Serial number 101 omitted by Finance Act, 2021.
837
Serial number(s) 102, 104 and 105 omitted by Finance (Supplementary) Act, 2022.
838
Serial number 103 omitted by Finance Act, 2021.
839
Serial numbers 106 and 108 omitted by Finance Act, 2021.

840
Serial number(s) 109 and 110 omitted by Finance (Supplementary) Act, 2022.
841
Serial No. 111, expression “White crystalline sugar” omitted through Finance Act, 2016.

143
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
4. PTCA Guide Wire
5. PTCA Guiding Catheters
6. Inflation Devices/Priority
Packs
7. 842[Optical Coherence
Technology (OCT) System
8. OCT Catheters
9. Intravascular Ultrasound
(IVUS)
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

842
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.

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)
3. Guide Wires
4. Contrast Lines
5. Pressure Lines
6. Mannifolds
843
7. [Wrist Bands for Radial
Vessel Closure]

C. CONTRAST MEDIA
FOR
ANGIOGRAPHY/ANGIO
PLASTY

1. Angiography Accessories
2. ASD Closure Devices
3. ASD Delivery Systems
4. VSD Closure Devices
5. VSD Delivery System
6. Guide Wires
7. Sizing Balloons
8. Sizing Plates
9. PDA Closure Devices
10. PDA Delivery System

D. TEMPORARY
PACEMAKERS
(with leads, connectors and
accessories)

E. PERMANENT
PACEMAKER.
(with leads, connectors and
accessories)

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

G. IMPLANTABLE
CARDIOVERTES

843
New sub-serial No. 7 under entry B of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.

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)
(with leads, connectors and
accessories)

H. CARDIAC ELECTRO-
PHYSIOLOGY
PRODUCTS

1. Electrophysiology catheters
2. Electrophysiology cables
3. Electrophysiology
connectors
4. 844[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
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

844
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.

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)

1. Oxygenators
2. Cannulas
3. Prosthetic Heart Valves
4. Luminal shunts for heart
surgery
5. Artificial limbs and
appliances
845
6. [High-Flow, Low-Profile
Percutaneous Heart Pump
PHP Console and Catheters
7. Tandem Heart / Tandem
Lung and Accessories
8. Ventricular Assist Device
System
(a) Heart Mate-II
(b) Heart Mate-III
(c) Centri Meg LEOV

9. Beating Heart Surgery

stabilizers & Coronary
Shunts
10. Minimally invasive surgery
equipment & Instruments

11. RF Ablation equipment for

AF (Surgical)
12. Heart Lung Machines]

K. EQUIPMENT

1. Cardiac Angiography
Machine
2. Echocardiography Machines
3. ETT Machines
4. Gamma Camera for Nuclear
Cardiology Studies
5. 846[Left Ventricular Assist
Device / System (LVAD)
and Catheters

845
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.
846
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.

147
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
6. MitraClipTranscatheter
Mitral Valve System
7. MitraClip Guide Catheter,
Clip and Delivery System
8. Patent Foramen Ovale
(PFO) Closure Device
9. Left Atrial Appendage
(LAA) Occluder
10. Transcatheter Aortic / Heart
Valve System
(TAVI/TAVR)
11. Cerebral Retrievable Stents
12. Aortic Stent Grafts

13. Embolization Coils,

Delivery System, Filling
Coil
14. Abdominal Aortic
Aneurysm (EVAR) System
and Accessories/ thoracic
EVAR/ extension
15. Insertable Cardiac Monitor
(ICM)
16. Carotid Stents
17. Vascular Clips
18. MRI Compatible Cardiac
Monitor, Infusion Pump,
Anesthesia Machine with
Accessories]

L. PERIPHERAL
INTERVENTIONS
EQUIPMENT

Disposables and other equipment

for peripheral interventions
including stents (including carotid
and wall stents), balloons, sheaths,
catheters, guide wires, filter wires,
coils, needles, valves (including
rotating homeostatic valves),
connecting cables, inflation

148
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
devices adapters 847[“Drug Eluting
Peripheral Stents”].
848
[113. ***] omitted
[114. ***[ omitted
849
[115. ***]
[116. ***] omitted
[117. ***] omitted
850
118. [omitted] [......]
851
119. [.......] omitted [......]
852
120. ***]
121. Blood Bag CPDA-1 with blood Respective headings
transfusion set pack in aluminium
foil with set.
853
[Explanation.– For removal of
doubt, it is clarified that the blood
transfusion sets not packed in
aluminum foil imported with
blood bags CPDA-1, in
corresponding quantity in same
consignment are also exempt]
122. Urine drainage bags Respective headings
854
[123. ***]
[124. ***]
[125. ***]
855
[126. ***] omitted
127. ***] omitted
856
[128. ***]
129. ***] omitted
857
[130. ***] omitted
[131. ***] omitted

847
Words “Drug Eluting Peripheral Stents” under entry L of S.No. 112 added by Finance Supplementary
(Amendment) Act, 2018.
848
Serial number(s) 113, 114, 116, and 117 omitted by Finance (Supplementary) Act, 2022.
849
Serial number 115 omitted by Finance Act, 2021.
850
S.No. 118 omitted by Finance Supplementary (Second Amendment) Act, 2019
851
Serial No. 119, expression “Tubular day..” omitted through Finance Act, 2016.
852
Serial number 120 omitted by Finance Act, 2024.
853
Explanation added by Finance Act, 2023
854
Serial numbers 123 to 125 omitted by Finance Act, 2021.
855
Serial number(s) 126, 127 and 129 omitted by Finance (Supplementary) Act, 2022.
856
Serial number 128 omitted by Finance Act, 2021.
857
Serial number(s) 130 to 132 omitted by Finance (Supplementary) Act, 2022.

149
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
[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
Toluene 2902.3000
Mixed xylene isomers 2902.4400
Naphthalene 2902.9010
Solvesso-100, 150, 200 2902.9090
858 3
[..] [..]
859 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

858
The words “ingredients for pesticides” and the figure “2903.3040” omitted by Finance Act, 2017
859
The words “Cadusafos Technical Material” and figure “2903.6900” omitted by Finance Act, 2017

150
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
860 1
[..] [..]
861 2
[..] [..]
862 3
[..] [..]
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
863 1
[..] [..]
Dimethyl Formamide (DMF) 2924.1990
864 2
[..] [..]
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-phenoxybenzyl 2926.9020
(S)-2-(4, chloro phenyl)-3 mehtyl
butyrate
Cyano, 3-phenony benzyl 2,2,3,3 2926.9030
tetra methyl cyclopropane
carboxalate
- Cypermethrin, Alpha 2926.9050
Cypermethrin, Beta-
Cypermethrin, Zeta-
Cypermethrin, Lambda
Cylalothrin, Deltamethrin,
Fenpropathrin, Esfenvalerate,
Bifenthrin
Technical Material- Acetamiprid,
Imidacloprid Technical Material-
Monomehypo, Chlorothalonil
Technical Material-
Bromoxynil Technical Material
Other nitrite compounds- 2926.9090
Cyfluthrin, Beta Cyfluthrin
Technical Material

860
The words “ingredients for pesticides” and the figure “2918.9010” omitted by Finance Act, 2017
861
The words “ingredients for pesticides” and the figure “2919.0010” omitted by Finance Act, 2017
862
The words “other ingredients for pesticides” and the figure “2919.0090” omitted by Finance Act, 2017
863
The words “Tiethanolamine and its salts” and the figure “2922.1300” omitted by Finance Act, 2017
864
The words “ingredients for pesticides” and the figure “2924.2930” omitted by Finance Act, 2017

151
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
2-N, N-Dimethyl amino-I sodium 2930.2010
thiosulphate, 3-thiosulfourropane
Ingredients for pesticides 2930.2020
2- N,N-dimethyamino 1,3 2930.9010
disodium thiosulphate propane
865
Other orgonosulpher compounds [Respective headings]
- Ethion, Methamidophos
Technical Material
- Dimethysulfoxid
866
Ingredients for pesticides [Respective headings]
867
Other Ingredients for pesticides [Respective headings]
868
Ingredients for pesticides [Respective headings]
2,3 Dihydro 2-2 dimethyl-7 benzo 2932.9910
furanyl methyl-carbamate
Other ingredients for pesticides 2932.9990
- Carbosulfan Technical Material
Fipronil 2933.1900
869
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 Material 2933.9910
Ingredients for pesticides 2934.1010
Ingredients for pesticides 2934.9920
-Methyl benzimidazol – 2 – 2938.9010
ylcarbamate.
-Dicopper chloride trihydroxide
870
Ingredients for pesticides [2939.8010]

865
For expression, words “respective headings” substituted by Finance Act, 2022.
866
For expression, words “respective headings” substituted by Finance Act, 2022.
867
For expression, words “respective headings” substituted by Finance Act, 2022.
868
For expression, words “respective headings” substituted by Finance Act, 2022.
869
For expression, words “respective headings” substituted by Finance Act, 2022.
870
Substituted for the figure “2939.9910” by Finance Act, 2017

152
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
871
- Abamectin, Emamectin [Respective headings]
Technical Material
Other Ingredients for pesticides 2941.9090
872
Sulphonic acid (Soft) [Respective headings]
873
Other surface active agents [Respective headings]
874
Catonic [Respective headings]
875
Non ionic surface active agents [Respective headings]
876
Other organic surface active [Respective headings]
agents 3402.9000
877
Chemical preparations [3824.9999]
Solvent C-9 2707.5000
878
[White spirit 2710.1240
Solvent oil 2710.1250]
879
[134. ***] omitted
[135. ***] omitted
[136. ***] omitted
880
[137. Paper weighing 60 g/m2, art paper, 4802.5510, 4810.1990,
printing paper and art card for 4810.1910, 4802.6990 and
printing of Holy Quran imported 4810.2900.]
by Federal or Provincial
Governments and Nashiran-e-
Quran as per quota determined by
IOCO
881
[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

871
For expression, words “respective headings” substituted by Finance Act, 2022.
872
For expression, words “respective headings” substituted by Finance Act, 2022.
873
For expression, words “respective headings” substituted by Finance Act, 2022.
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
Substituted for the figure “3824.9099” by Finance Act, 2017
878
New entries inserted by Finance Act, 2021.
879
Serial number(s) 134 to 136 omitted by Finance (Supplementary) Act, 2022.
880
S.No. 137 and entries relating thereto substituted by Finance Act, 2022.
881
Serial number(s) 138 to 142 omitted by Finance (Supplementary) Act, 2022.

153
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
(c) ABR
(d) Oto Acoustic Omission
144. Liquefied Natural Gas imported by 2711.1100
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
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;

154
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
(iv) that the Ministry of
Communications shall
certify in the prescribed
manner and format as set
out in Annex-B that the
imported equipment and
construction machinery
are bona fide requirement
for construction of Sukkur
– Multan Section (392.0
km) of Karachi –
Peshawar Motorway or for
the construction of
Karakorum
Highway(KKH) Phase-II -
Thakot to Havellian
Section (118.057 km) as
the case may be;
(v) for the clearance of
imported goods through
Pakistan Customs
Computerized System the
authorized officer of the
Ministry shall furnish all
relevant information, as
set out in Annex-B, online
against a specific user ID
and password obtained
under section 155D of the
Customs Act, 1969 (IV of
1969). In Collectorates or
Customs stations where
the Pakistan Customs
Computerized System is
not operational, the
Director Reforms and
Automation or any other
person authorized by the
Collector in this behalf
shall enter the requisite
information in the
Pakistan Customs
Computerized System on

155
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
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,
imported under this serial
number, shall not be re-
exported, sold or
otherwise disposed of
without prior approval of
the FBR. In case goods are
sold or otherwise disposed
of with prior approval of
FBR the same shall be
subject to payment of
sales tax as may be
prescribed by the FBR;
(vii) in case the equipment and
construction machinery,
imported under this serial
number, is sold or
otherwise disposed of
without prior approval of
the FBR in terms of para
(vi) above, the same shall
be subject to payment of
statutory rates of sales tax
as were applicable at the
time of import;
(viii) notwithstanding the
condition at para (vi) and
(vii) above, equipment
and construction
machinery, imported
under this serial number,
may be surrendered at any
time to the Collector of
Customs having
jurisdiction, without
payment of any sales tax ,

156
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
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.
882
[146. ***] omitted
147. Goods supplied to German Respective heading
Development Agency (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

882
Serial number 146 omitted by Finance (Supplementary) Act, 2022.

157
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
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;
883
[149. ***] omitted
[150 ***] omitted
884
[151. ***] omitted
152. Supplies of electricity, as made 2716.0000
from the day of assent to the
Constitution (Twenty-fifth
Amendment) Act, 2018, till
885
[30th June, 2026], to all
residential and commercial
consumers in tribal areas, and to
such industries in the tribal areas
which were set and started their
industrial production before 31st
May, 2018, but excluding steel and
ghee or cooking oil industries
886[153.
***]
887
[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.
888
[155. ***] omitted

883
Serial number 149 and 150 omitted by Finance (Supplementary) Act, 2022.
884
Serial number 151 omitted by Finance Act, 2025.
885
Expression substituted by Finance Act, 2025.
886
Serial number 153 omitted by Finance Act, 2021.
887
New serial numbers 154 to 156 inserted by Finance Act, 2020.
888
Serial number 155 omitted by Finance (Supplementary) Act, 2022.

158
 Sales Tax Act, 1990

Serial Description Heading Nos. of the First

No Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
889
[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
890
[157. Import of CKD (in kit form) of Respective headings
following electric vehicles (4
wheelers) by local manufacturers
till 30th June, 2026:
(i) Small cars/SUVs with 50
Kwh battery or below;
and
(ii) Light commercial vehicles
(LCVs) with 150 kwh
battery or below
891
[158. ***] omitted
892
[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

889
Serial number 156 substituted by Finance (Supplementary) Act, 2022.
890
New serial numbers 157 to 162 inserted by Finance Act, 2021.
891
Serial number 158 omitted by Finance (Supplementary) Act, 2022.
892
Serial numbers 159 & 160 omitted by Finance Act, 2023

159
 Sales Tax Act, 1990

conditions, limitations and

restrictions.
893
[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
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.
894
164. ***] omitted
165. Goods imported by or donated to 99.13 and 99.14,
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 and Respective headings
natural gas supplied to hospitals
run by the charitable hospitals of
fifty beds or more.
167. Goods temporarily imported into 99.19, 99.20 and 99.21
Pakistan, meant for subsequent
exportation charged to zero-rate
of customs duty subject to the
similar restrictions, limitations,
conditions and procedures as are
envisaged for the purpose of
applying zero-rate of customs
duty on such goods under the
Customs Act, 1969 (IV of 1969).

893
New serial number(s) 163 to 174 added by Finance Act, 2022.
894
Serial number 164 omitted by Finance Act, 2025.

160
 Sales Tax Act, 1990

168. Fertilizers 895[excluding DAP] Respective headings

896
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 manufactured Respective headings
in and exported from Pakistan
which are subsequently imported
in Pakistan within one year of
their exportation, provided
conditions of section 22 of the
Customs Act, 1969 (IV of 1969),
are complied with.
174. ***]
897
[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

895
Words added by Finance Act, 2023
896
Serial numbers 169, 170 and 174 omitted by Finance Act, 2024.
897
Serial number(s) 175 to 180 inserted by Finance Act, 2024.

161
 Sales Tax Act, 1990

verify the genuineness of such

cases and furnish an undertaking
to the effect that donated goods
shall not be sold, utilized or
9908(i) and 9911.”. 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 entrustment Respective heading
scheme under SRO 760(I)/2013
179. Import of cystagon, cysta drops 3004.9099
and trientine capsules 898[omitted]
180. Bovine semen 0511.1000.]
899
[181. Import or lease of aircrafts and 8802.1200
parts thereof by Pakistan 8802.3000
International Airlines Corporation 8802.4000”;
Limited (PIACL)

898
The expression “(for personal use only)” omitted by Finance Act, 2025.
899
S.No. 181 and entries relating thereto in columns (1), (2) and (3) inserted by Finance Act, 2025

162
 Sales Tax Act, 1990
900
[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 Goods imported (Collectorate
by the authorized officer of the Ministry of Ports of import)
and Shipping)

Date of CRN/
Customs duty

Rate of sales

Collectorate
(applicable)
Description

Mach No.

Mach No.
imported
Quantity

Quantity
HS code

Specs

UOM

CRN/
WHT
rate

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

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

Rate of sales

Date of CRN/
Collectorate
(applicable)
Description

Mach No.

Mach No.
imported
Quantity

Quantity
HS code

Specs

UOM

CRN/
WHT
rate

tax

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

900
Annexure-I inserted through Finance Act, 2016.

163
 Sales Tax Act, 1990
901
[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) 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_.

901
New Annexures A, B, C & D inserted by Finance Act, 2018.

164
 Sales Tax Act, 1990

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. or IGM No. Remarks, if
and 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 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

165
 Sales Tax Act, 1990

[See condition 146(b)]

INDEMNITY BOND

(On appropriately stamp non-judicial paper attested by a Government servant in

BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a
Scheduled Bank)

THIS DEED OF INDEMNITY is made on the _________ date of

__________BETWEEN Messrs___________ having registered office at
_________ (hereinafter called "the importers" which means and includes their
successors, administrators, executors and assignees) of the one part, AND the
President of the Islamic Republic of Pakistan through the Collector of Customs
_________ (hereinafter called the "Collector of Customs"), of the other part.

WHEREAS the Federal Government, by its decision contained in serial number

146 and subject to the conditions given in the said serial number 146, has been
pleased to direct that such equipment shall be exempt from the whole of sales tax
leviable thereon, in accordance with the said serial number 146, if imported for
Lahore Orange Line Metro Train Project.

AND WHEREAS M/S.____________, the importers have imported the equipment

mentioned in the said serial number 146 for the above mentioned project in
accordance with the conditions given in the said serial number 146;

NOW, THEREFORE, in consideration of the release of the equipment without

recovery of leviable sales tax, the importers bind themselves to pay on demand to
the Government of Pakistan the sum of Rs. __________ being the sales tax and
charges leviable on the equipment, if the importers fail to fulfill the condition (f)
or (g) or (h) of the said serial number 146, as the case may be.

The importers further agree and bind themselves that the amount covered by this
Indemnity Bond shall be recovered as arrears of sales tax under section 202 of the
Customs Act, 1969. This Bond shall stand revoked automatically when the
Collector of Customs is satisfied that the importers have fulfilled all the conditions
of the said serial number 146.

Signed by importers on this ______________ day of _________________201_.

Managing Director or person next in hierarchy duly authorized by MD

(Name and permanent address)

Collector of Customs
(On behalf of President)

Witness(1)___________________________________________________
(signature, name, designation and full address)

166
 Sales Tax Act, 1990

Witness(2)__________________________________________________
(signature, name, designation and full address)

Annex-D
[See conditions 146 (c) and (e)]

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. or IGM No. Remarks, if
and 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: ________________________”]

167
 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)
902
[1. ***] omitted
[2. ***] omitted
903 904
[3. [Supplies made by cottage Respective headings.]
industry.]
[4. ***] omitted
905
[5. ***]
6. Supply of fixed assets against Respective headings.
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.
906
7. ***]
08. Foodstuff cooked or prepared Respective headings.
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 any
further process of
manufacture.
907
[11. ***]
908
[12. ***]
]
909 910
[ [13. ***
2
[14. ***]
911
[15. ***] omitted

902
Serial number(s) 1, 2 and 4 omitted by Finance (Supplementary) Act, 2022.
903
S. No. 3 substituted by the Finance Act, 2007
904
Substituted by the Finance Act, 2014
905
S. No. 5 omitted by the Finance Act, 2011
906
Serial number 7 omitted by Finance Act, 2024.
907
S. No. 11 omitted by the Finance Act, 2022.
908
S. No. 12 omitted by the Finance Act, 2013
909
S. Nos. 13 to 16 added by the Finance Act, 2014
910
S. No. 13 & 14 omitted by the Finance Act, 2015
911
Serial number(s) 9, 15 and 16 omitted by Finance (Supplementary) Act, 2022.

168
 Sales Tax Act, 1990

Serial No Description Heading Nos. of the First

Schedule to the Customs
Act, 1969 (IV of 1969)
(1) (2) (3)
[16. ***] omitted
912
[17. ***]
18. ***]
19. ***]
20. ***]
913
[21. ***]
914
[22. ***] omitted
[23. ***] omitted
[24. ***]
[25. ***]
915
[26. Supply of locally produced silos Respective heading
till 30.06.2026
27. Wheat Bran 916[This exemption 2302.3000
shall apply from the 1st day of
July, 2018]
28. Sugar beet 1212.9100
29. Fruit juices, whether fresh, 2009.1100, 2009.1200,
frozen or otherwise preserved but 2009.1900, 2009.2100,
excluding those bottled, canned 2009.2900, 2009.3100,
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 or 04.02
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 918[Respective heading]
917
[***] under a brand name

912
S. Nos. 17 to 20 and 24, 25 omitted by Finance Act, 2021.
913
Serial number 21 omitted by Finance Act, 2024.
914
Serial number(s) 22, 23 and 33 omitted by Finance (Supplementary) Act, 2022.
915
New serial numbers 26 to 39 inserted by Finance Act, 2021.
916
Expression added by Finance Act, 2023
917
Under serial number(s) 32 and 34 to 37 words omitted by Finance Act, 2023
918
Words substituted by Finance Act, 2022.

169
 Sales Tax Act, 1990

[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. ***] omitted919
39. Products of meat or meat offal 1602.3200, 1602.3900,
excluding sold 920[***] under a 1602.5000, 1604.1100,
brand name or trademark 1604.1200, 1604.1300,
1604.1400, 1604.1500,
1604.1600, 1604.1900,
1604.2010, 1604.2020
and 1604.2090]
921
[40 Live Animals and live poultry Respective headings
41 Meat of bovine animals, sheep, Respective headings
goat and uncooked poultry meat
excluding those sold 935[***]
under a brand name
42 Fish and crustaceans excluding Respective headings
those sold 935[***] under a brand
name
43 Live plants including bulbs, roots0601.1010, 0601.1090,
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
922
[45 Edible vegetables including roots Respective heading]
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

919
Serial number 38 omitted by Finance (Supplementary) Act, 2022.
920
Under serial number(s) 39, 41 and 42 words omitted by Finance Act, 2023
921
Serial number(s) 40 to 51 inserted by Finance (Supplementary) Act, 2022.
922
Serial number 45 substituted by Finance Act, 2022.

170
 Sales Tax Act, 1990

48 Eggs including eggs for hatching 0407.1100, 0407.1900

0407.2100 and 0407.2900

49 Compost (non-commercial Respective headings

fertilizer)
50 Locally manufactured laptops, 8471.3010 and 8471.3020
computers, notebooks whether or
not incorporating multimedia kit
and personal computers
51. Newspaper Respective headings
923
[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
924
[55. Single cylinder agriculture diesel Respective headings.]
engines (compression ignition
internal combustion piston
engines) of 3 to 36 HP.
925
[56. Milk excluding: 04.01
(i) that sold under a brand
name; or
(ii) supplied by corporate
dairy farms
926
57. Iron and steel scrap 7204.4100,
excluding:– 7204.3000,
7204.4990.]
(a) supplied by
manufacturer cum-exporter of
recycled copper, authorized
under Export Facilitation
Scheme, 2021 directly supplied
to a registered steel melter
subject to such apportionment,
conditions and restrictions as
may be specified by the Board
through a Sales Tax General
Order; and

(b) supplied directly by the

importer (verifiable from the
goods declaration form) to a

923
New serial number(s) 52 to 54 added by Finance Act, 2022.
924
New serial number 55 added by Tax Laws (Second Amendment) Ordinance, 2022.
925
Serial number(s) 56 and 57 added by Finance Act, 2024.
926
Against S. No. 57, in column (2), substituted by Finance Act, 2025.

171
 Sales Tax Act, 1990

registered steel melter subject to

such apportionment, conditions
and restrictions as may be
specified by the Board through a
Sales Tax General Order.

Notes:--

1. For the 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 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.

---------
927
[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, 928[14A and 15] of the Annexure, the Chief
Executive, or the person next in hierarchy duly authorized by the

927
Inserted by Finance Act, 2014
928
The figure and words inserted through Finance Act, 2017

172
 Sales Tax Act, 1990

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 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.
929
[ANNEXURE

S. Description PCT Conditions

No heading
(1) (2) (3) (4)
930
[1. ***] omitted
2& ***] omitted
2A
3. ***] omitted

929
Inserted by Finance Act, 2014.
930
Serial number(s) 1 to 9 and 11 omitted by Finance (Supplementary) Act, 2022.

173
 Sales Tax Act, 1990

S. Description PCT Conditions

No heading
(1) (2) (3) (4)
4. ***] omitted
5. ***] omitted

6. ***] omitted

7. ***] omitted

8. ***] omitted

9. ***] omitted
931
10 ***] omitted
.
11. ***] omitted]

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

other project related items Headings with the subject matter
including capital goods, of Industries shall
certify in the prescribed
for setting up of hotels, manner and format as
power generation plants, per Annex-B that the
water treatment plants and imported goods are
other infrastructure related bonafide project
projects located in an area requirement. The
of 30 km around the zero authorized officer of the
point in 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 of without
prior approval of the
FBR and payment of
customs duties and
taxes leviable at the
time of import.

931
Serial number 10 omitted by Finance Act, 2015.

174
 Sales Tax Act, 1990

S. Description PCT Conditions

No heading
(1) (2) (3) (4)
932
[1 ***] omitted
3.
14. ***] omitted

14A ***] omitted

[15& ***] omitted

15A
15B. ***] omitted
933
[16 ***]
[17. ***] omitted
18. The following parts for If imported by
assembling and manufacturers and
manufacturing of personal assemblers of
computers and laptops: computers and laptops,
(i) Bare PCBs 8534.0000 registered with and
(ii) Power Amplifier 8542.3300 certified by
(iii) Microprocessor/ 85.42 Engineering
Controllers Development Board in
(iv) Equipment for SMT 8486.2000 accordance with quota
Manufacturing determined by IOCO
(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 85.42
Chip/FPGA-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
(xvii) Network cards 8517.6990
(xviii) Graphic cards 8471.5000
(xix) wireless cards 8517.6970
(xx) micro phone 8518.3000

932
Serial number(s) 13 to 15B and 17 omitted by Finance (Supplementary) Act, 2022.
933
S.No. 16 and entries relating thereto omitted by Finance Act, 2015

175
 Sales Tax Act, 1990

(xxi) Trackpad 8471.6020

19. Plant and machinery, 9917(2) Nil]
except 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.
934
[20 Plant and machinery for Respective The exemption shall be
. the assembly/ heading admissible on one time
manufacturing of electric basis for setting up the
vehicles 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).]
935
[21 ***] omitted
936
[22 1.Machinery, equipment Respective (i) This concession
and spares meant for Headings shall also be
initial installation, available to
balancing, primary
modernization, contractors of the
replacement or project upon
expansion of projects fulfilment of the
for power generation following

934
New serial number 20 inserted by Finance Act, 2020.
935
Serial number 21omitted by Finance (Supplementary) Act, 2022.
936
New serial number 22 inserted by Finance Act, 2022.

176
 Sales Tax Act, 1990

through hydel, oil, conditions,

gas, coal, nuclear and namely:-
renewable energy (a) the contractor shall
sources including submit a copy of the
under construction contract or agreement
projects entered into under which he intends
an implementation to import the goods for
agreement with the the project;
Government of (b) the Chief Executive
Pakistan prior to 15th or head of the
day of January, 2022. contracting company
2. Construction shall certify in the
machinery, equipment and prescribed manner and
specialized vehicles, format as per Annex-A
excluding passenger that the imported goods
vehicles, imported on are the projects bona
temporary basis as fide requirement; and
required for the (c) the goods shall not
construction of project. be sold or otherwise
disposed of without
prior approval of the
FBR on payment of
sales tax leviable at the
time of import;
(ii) temporarily
imported goods shall
be cleared against a
security in the form of
a post-dated cheque for
the differential amount
between the statutory
rate of sales tax and the
amount payable along
with an undertaking to
pay the sales tax at the
statutory rates in case
such goods are not re-
exported on conclusion
of the project.]

937
[“Annex-A
Header Information
NTN/FTN of Importer Regulatory Authority no. Name of Regulatory authority
(1) (2) (3)

937 Annex-A substituted by Finance Act, 2022.

177
 Sales Tax Act, 1990

Details of Input goods (to be filled by the chief executive Goods imported (Collectorate of import)
of the importing company)

rate

rate

Quantity imported
Custom Duty

Date of CRN/
Tax
(applic-able)

Collectorate
(applicable)
Description

Mach No.
HS Code

Quantity

Mach.
Specs

UOM

CRN/
WHT
Sales

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.–

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.]
938
[Annex-B

Header Information
NTN/FTN of Importer Approval No.
(1) (2)

938
Inserted by the Finance Act, 2014

178
 Sales Tax Act, 1990

Details of Input goods (to be filled by the Goods imported

authorized officer of the Regulatory (Collectorate of import)
Authority)

Tax
Duty rate

CRN/Mac
(applicabl

(applicabl

Collector
Descripti
HS Code

imported
Quantity

Quantity
Custom

Date of
UOM

h. No.
Specs

CRN/
Mach
WHT
Sales
rate

No.
ate
on

e)

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

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.
939
[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;

939
Table-4 added by Finance Act, 2021.

179
 Sales Tax Act, 1990

(iv) The said exemption shall only be available to a person upon

furnishing proof of having a functional business premises located
within limits of the Border Sustenance Markets; and
(v) Breach of any of the conditions specified herein shall attract relevant
legal provisions of this Act, besides recovery of the amount of sales
tax alongwith default surcharge and penalties involved.

Annexure
S.No Description Heading Nos of the
First Schedule to
the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
1 Seed (Potatoes) 0701.1000
2 Tomatoes, fresh or chilled 0702.0000
3 Onions and shallots 0703.1000
4 Garlic 0703.2000
5 Cauliflowers cabbage 0704.9000
6 Carrots and turnips 0706.1000
7 Cucumbers and gherkins fresh or chilled 0707.0000

8 Peas (pisum sativum) 0708.1000

9 Beans (vigna spp., phaseolus spp.) 0708.2000
10 other leguminous vegetables 0708.9000
11 Peas (Pisum sativum) 0713.1000
12 Grams (Dry/Whole) 0713.2010
13 Dried leguminous vegetables 0713.2090,
0713.9090
14 Beans of the species Vigna mungo (L.) 0713.3100
Hepper or Vigna radiata (L.) Wilczek

15 Small red (Adzuki) beans (Phaseolus or 0713.3200

Vigna angularis)
16 Kidney beans including white beans 0713.3300
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

180
 Sales Tax Act, 1990

21 Broad beans (Vicia faba var. major) and 0713.5000

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 Tree 0906.1900
Flowers)
26 Neither crushed nor ground (Cloves) 0907.1000
27 Crushed or ground (Cloves) 0907.2000
28 Neither Crushed nor ground (Nutmeg) 0908.1100
29 Crushed or ground (Nutmeg) 0908.1200
30 Neither crushed nor ground (Maze) 0908.2100
31 Crushed or ground (Maze) 0908.2200
32 Large (Cardammoms) 0908.3110
33 Small (Cardammoms) 0908.3120
34 Crushed or ground (Cardammoms) 0908.3200
35 Neither crushed nor ground (Coriander) 0909.2100
36 Crushed or ground (Coriander) 0909.2200
37 Neither crushed nor ground (Seeds of 0909.3100
Cumins)
38 Crushed or ground (Seeds of Cumins) 0909.3200
39 Neither crushed nor ground (Seeds of 0909.6100
Anise, Badian, Caraway, Fennel etc)
40 Crushed or ground (Seeds of Anise, 0909.6200
Badian, Caraway, Fennel etc)
41 Thyme; bay leaves 0910.9910
42 Barley (Seeds) 1003.1000,
1003.9000
43 Sunflower seeds ,whether or not broken 1206.0000
44 Locust beans 1212.9200
45 Cereal straws and husks 1213.0000
46 Knives and cutting blades for paper and 8208.9010
paper board
47 Of a fat content, by weight, not 0401.1000
exceeding 1 % (milk and cream)
48 Of a fat content, by weight, exceeding 1 0401.2000
% but not exceeding 6 % (milk and
cream)

181
 Sales Tax Act, 1990

49 Of a fat content, by weight, exceeding 6 0401.4000

% but not exceeding 10% (Milk and
Cream)
50 Of a fat content, by weight, exceeding 0401.5000
10 % (Milk and Cream)
51 Leeks and other alliaceous vegetables 0703.9000
52 Cauliflowers and headed broccoli 0704.1000
53 Brussels sprouts 0704.2000
54 Cabbage lettuce (head lettuce) 0705.1100
55 Lettuce 0705.1900
56 Chicory 0705.2100,
0705.2900
57 Fruits of the genus Capsicum or of the 0709.6000
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
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

182
 Sales Tax Act, 1990

77 Tools for masons, watchmakers, miners 8205.5900

and hand tools nes
78 For kitchen appliances or for machines 8208.3000
used by the food industry
79 Other kitchen appliances 8208.9090

940
80 Yogurt [0403.2000]
81 Other (Potatoes) 0701.9000
82 Sweet corn 0710.4000
83 Mixtures of vegetables 0710.9000
84 Fresh (Dates) 0804.1010
85 Dried (Dates) 0804.1020
86 Apricots 0809.1000
87 Sour cherries (Prunus cerasus) 0809.2100
88 Other (Apricots) 0809.2900
89 Peaches, including nectarines 0809.3000
90 Plums and sloes 0809.4000
91 Strawberries 0810.1000
92 Kiwi Fruit 0810.5000
93 Neither crushed nor ground (Ginger) 0910.1100
94 Wheat and Meslin(Other) 1001.1900
95 Wheat and Meslin (Other ) 1001.9900
96 Of Wheat (Flour) 1101.0010
97 Of Meslin 1101.0020
98 Vermacelli 1902.1920
99 Other (Packed Cake) 1905.9000
100 Homogenised perparations 2007.1000
101 Citrus Fruit 2007.9100
102 Other (jams) 2007.9900
103 Organic surface-active products and 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

940 Expression substituted by Finance Act, 2022.

183
 Sales Tax Act, 1990

106 Tableware and kitchenware of porcelain 6911.1090

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

184
 Sales Tax Act, 1990

The
SEVENTH SCHEDULE
941
[***]
942
[The
EIGHTH SCHEDULE
[See clause (aa) of sub-section (2) of section 3]

Table-1

S. Description Heading Rate of Condition

No. Nos. of the Sales
First Tax
Schedule to
the Customs
Act, 1969
(IV of 1969)
(1) (2) (3) (4) (5)
943
[1. ***]
944
[2. ***]
945
[3. ***]
946
[4. ***] omitted
[5. ***]
6. ***] omitted
7. ***] omitted

8. ***] omitted

9. ***] omitted

10. ***] omitted

11. ***] omitted

12. ***] omitted

947
[13 ***] omitted
.

[14. ***] omitted

941
The seventh schedule omitted by the Finance Act, 1997
942
The eighth schedule inserted by the Finance Act, 2014
943
Serial numbers 1 and 5 omitted by Finance Act, 2021.
944
Serial number 2 omitted by Finance Act, 2020.
945
S. No. 3 and entries relating thereto omitted by Finance Act, 2015
946
Serial number(s) 4 and 6 to 12 omitted by Finance (Supplementary) Act, 2022.
947
Serial number(s) 13 to 17, 20, 26 to 30 and 34 omitted by Finance (Supplementary) Act, 2022.

185
 Sales Tax Act, 1990

S. Description Heading Rate of Condition

No. Nos. of the Sales
First Tax
Schedule to
the Customs
Act, 1969
(IV of 1969)
(1) (2) (3) (4) (5)
15. ***] omitted
16. ***] omitted
17. ***] omitted
948
[18 ***]
.
949
[19 ***]
.
20. ***] omitted
950
[21 ***]
.
951
[22 ***]
.
23. Second hand and 6309.0000 5%
worn clothing or
footwear
952
[25 ***]
.
26. ***] omitted
27 ***] omitted
28 ***] omitted
29 ***] omitted
30 ***] omitted
953
[31 [..........]] omitted
.
954
[32 [***] omitted
.
2
[33. [..........]] omitted
34. ***] omitted

948
Serial number 18 and entries relating thereto is omitted through Finance Act, 2019.
949
Serial number 19 omitted by Finance Act, 2021.
950
Serial number 21 and entries relating thereto is omitted through Finance Act, 2019.
951
Serial number 22 omitted by Finance Act, 2021.
952
Serial number 25 omitted by Finance Act, 2022.
953
Serial number 31 omitted through Finance Act, 2016.
954
Serial number 32 and entries relating thereto is omitted through Finance Act, 2019.

186
 Sales Tax Act, 1990

S. Description Heading Rate of Condition

No. Nos. of the Sales
First Tax
Schedule to
the Customs
Act, 1969
(IV of 1969)
(1) (2) (3) (4) (5)
955
[3 [..........]] omitted
5 to
42].
956
43. Natural gas Respective [5%] If supplied to
heading fertilizer 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
957
45 ***] omitted
.
46. ***] omitted
47. Locally produced 27.01 Rs. Nil
958
coal [700]
per
metric
tonne or
959
[18%]
ad
valorem,
whichev
er is
higher
960
[4 [..........]] omitted
8&
49
961
[5 ***]
0.
[51. ***]

955
S.No(s) 33 & 35 to 42 omitted by Finance Act, 2018.
956
For the figure “10” the figure “5” substituted through Finance Act, 2018.
957
Serial number(s) 45 and 46 omitted by Finance (Supplementary) Act, 2022
958
Expression substituted by Finance Act, 2022.
959
Expression substituted by Finance (Supplementary) Act, 2023.
960
S.No(s) 48 & 49 omitted by Finance Act, 2018.
961
S.No(s) 50 to 51 omitted by Finance Act, 2021.

187
 Sales Tax Act, 1990

S. Description Heading Rate of Condition

No. Nos. of the Sales
First Tax
Schedule to
the Customs
Act, 1969
(IV of 1969)
(1) (2) (3) (4) (5)
962
[5 ***]
2.
53. *** 963[Omitted]
964
54 ***] omitted
.
55. ***] omitted
965
56. Potassium Chlorate Respective [18%] Import and supply
(KCLO3) headings alongwit thereof. Provided
h rupees that rate of rupees
966 967
[60] [60] per kilogram
per shall not apply on
kilogram imports made by and
supplies made to
organizations under
the control of
Ministry of Defence
Production.
57. Rock phosphate Respective 10% If imported by
headings fertilizer
manufacturers for
use in the
manufacturing of
fertilizers.
968
[5 ***]
8.
[59. ***] omitted
969
[6 ***] omitted
0.
61. ***] omitted
62. ***] omitted
63. ***] omitted
64. ***] omitted

962
Serial number 52 omitted by Finance Act, 2022.
963
Serial number 53 omitted by Finance Act, 2025.
964
Serial number(s) 54, 55, 59 and 61 to 64 omitted by Finance (Supplementary) Act, 2022
965
Expression substituted by Finance (Supplementary) Act, 2023.
966
The figure substituted by Finance Act, 2022.
967
The figure substituted by Finance Act, 2022.
968
S.No. 58 omitted by Finance Act, 2024.
969
Serial number 60 “Fat filled Milk” omitted by Finance Act, 2022.

188
 Sales Tax Act, 1990

S. Description Heading Rate of Condition

No. Nos. of the Sales
First Tax
Schedule to
the Customs
Act, 1969
(IV of 1969)
(1) (2) (3) (4) (5)
970
[6 ***]
5.
971
66 ***]
.
***] omitted
972
[6
6A
66B ***] omitted
67. ***]
68. ***] omitted
69. ***] omitted
973
[7 Following locally Respective 1%
0. manufactured Heading Local supplies only]
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
974
[7 Following locally Respective 1% If supplied locally
1. manufactured or heading
assembled electric

970
Serial numbers 65 and 67 omitted by Finance Act, 2021.
971
S.No. 58 omitted by Finance Act, 2024.
972
Serial number(s) 66A, 66B and 68, 69 omitted by Finance (Supplementary) Act, 2022
973
Serial number 70 substituted by Finance (Supplementary) Act, 2022
974
New serial numbers 71 to 74 inserted by Finance Act, 2021.

189
 Sales Tax Act, 1990

vehicles (4 wheelers)
till 30th June, 2026:
(i) Small cars/
SUVs with 50 Kwh
battery or below; and
(ii) Light
commercial vehicles
(LCVs) with 150 kwh
battery or below
72. *** 975[Omitted]
976
[7 Locally
3. manufactured Hybrid
electric vehicle 977[till
30th June, 2026]:
(a) Upto 1800 cc
(b) From 1801 cc to 87.03 8.5%.
2500 cc 87.03 12.75%
74. Goods supplied from Respective 16%.]
tax-exempt areas of headings
erstwhile
FATA/PATA to the
taxable areas
978
[7 ***]
5
979
[7 ***] omitted
6
980
[7 Imported personal 8471.3020 10%
7 computers and and
Laptop computers, 8471.3010
notebooks whether or
not incorporating
multimedia kit
981
[7 Supply of locally 71.13 3% No input tax shall be
8. manufactured articles adjusted
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

975
Serial number 72 omitted by Finance Act, 2025.
976
Serial number 73 substituted by Finance (Supplementary) Act, 2022
977
Expression inserted by Finance Act, 2024.
978
Serial number 75 omitted by Finance Act, 2022.
979
Serial number 76 omitted by Finance (Supplementary) Act, 2022
980
Serial number 77 substituted by Finance Act, 2024.
981
New serial number(s) 78 to 82 added by Finance Act, 2022

190
 Sales Tax Act, 1990

80. EV transport buses of Respective 1%

25 seats or more in heading
CBU condition
982
[8 Substances registered Respective 1% Subject to the
1. as drugs under the heading conditions that:
Drugs Act, 1976 (i) Tax charged and
(XXXI of 1976) deposited by the
983
[***] manufacturer or
importer, as the case
may be, shall be
final discharge of tax
in the supply chain
(ii) No input tax
shall be adjusted in
the supply chain.
82. Raw materials for the Respective 1% Subject to the
basic manufacture of heading conditions that: (i)
pharmaceutical active DRAP shall certify
ingredients and for item-wise
manufacture of requirement of
pharmaceutical manufacturers of
products, provided drugs and APIs and
that in case of import, in case of import
only such raw shall furnish all
materials shall be relevant information
entitled to reduced to Pakistan Customs
rate as specified in Computerized
column (4) which are System; and (ii) No
liable to customs duty input tax shall be
not exceeding eleven adjusted in the
per cent ad valorem, supply chain.]
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.
984
[8 DAP Respective 5% Subject to the
3 headings condition that no
refund of excessive
input tax, if any,
shall be admissible.]

982
Serial numbers 81 & 82 substituted by Finance Act, 2023
983
Expression omitted by Finance Act, 2024.
984
New serial number added by Finance Act, 2023

191
 Sales Tax Act, 1990
985
84 (i) Colors in sets 3213.1000
. (ii) Writing, drawing 3215.9010
and marking inks and
3215.9090
(iii) Erasers 4016.9210
and
4016.9290
(iv) Pencil sharpeners 8214.1000
(v) other drawing, 9017.2000
marking out or
mathematical 10%
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
feed, sunflower seed and
meal, rape seed meal respective
and canola seed meal headings
986
(i) imports of plant, Respective 10%
[89. machinery, and heading (for 2025-
equipment for 26)
installation in the
tribal areas, and 12%
import of

985
Serial number(s) 84 to 88 inserted by Finance Act, 2024.
986
Serial number 89 and 90 entries relating thereto inserted by Finance Act, 2025

192
 Sales Tax Act, 1990

industrial inputs (for 2026-

by industries 27)
located in the
tribal areas, as 14%
defined in the (for 2027-
Constitution of 28)
the Islamic
Republic of
Pakistan; and 16%
(ii) and supplies (for 2028-
within the tribal 29)
areas

Provided that, in
case of imports,
the same shall be
allowed
clearance by the
Customs
authorities in
accordance with
quota determined
by IOCO.

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

193
 Sales Tax Act, 1990
987
[Table-2 ***]

Annex-A

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

Tax
Duty rate

Date of
(applicabl

Collector
Descripti
HS Code

imported
Quantity

Quantity
(applic-
Custom

Mach.
Specs

UOM

CRN/

CRN/
Mach
WHT
Sales
able)
rate

No.

No.
ate
on

e)
(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

CERTIFICATE. It is certified that the description and quantity mentioned above

are commensurate with the project requirement and that the same are not
manufactured locally. It is further certified that the above items shall not be used
for any other purpose.

Signature of Chief Executive, or

the person next in hierarchy duly
authorized by the Chief Executive
Name ______________________
N.I.C. No. __________________________________

NOTE:-- In case of clearance through Pakistan Customs Computerized System,

the above information shall be furnished online against a specific user I.D. and
password obtained under section 155D of the Customs Act, 1969.

Explanation.—

Chief Executive means.—

1. owner of the firm, in case of sole proprietorship; or

2. partner of firm having major share, in case of partnership firm; or
3. Chief Executive Officer or the Managing Director in case of limited
company or multinational organization; or
4. Principal Officer in case of a foreign company.

--------------
Annex-B

987
Table -2 omitted by Finance (Supplementary) Act, 2022.

194
 Sales Tax Act, 1990

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 Authority) (Collectorate of import)

Sales Tax
Duty rate

Date of
CRN/Mac
(applicabl

(applicabl

Collector
Descripti
HS Code

imported
Quantity

Quantity
Custom

UOM

h. No.
Specs

CRN/
Mach
WHT
rate

No.
ate
on

e)

e)
(3 (8 (9 (1 (1
(4) (5) (6) (7) (10) (11) (14)
) ) ) 2) 3)

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.

-------------

195
 Sales Tax Act, 1990
988
[The
NINTH SCHEDULE
[See sub-section (3B) of section 3]

989
[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

990
[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.]

988
The Ninth Schedule added by the Finance Act, 2015
989 Table-I, Table-II and conditions substituted by Finance Act, 2020.
990 Proviso and Explanation to Table-1 inserted by Finance Act, 2021.

196
 Sales Tax Act, 1990
991
[Table-II
Cellular mobile phones in CKD/CBU form:
S. Description / Sales tax on Sales tax on Sales tax on supply
No. Specification of CBUs at the import in of locally
Goods time of import CKD/SKD manufactured
or registration condition mobile phones in
(IMEI number CBU condition in
by CMOs) addition to tax
under column (4)
(1) (2) (3) (4) (5)
1. Cellular mobile
phones or satellite
phones to be charged
on the basis of
import value per set,
or equivalent value
in rupees in case of
supply by the
manufacturer, at the
rate as indicated
against each
category:--
A. Not exceeding 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–
(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;
992
[(iii), (iv) and (v).]

991
Table-II substituted by Finance Act, 2024.
992
Clauses (iii), (iv) and (v) under Table-II omitted by Finance Act, 2024.

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 Sales Tax Act, 1990

993
[The
TENTH SCHEDULE
[See sub-section (1B) of section 3]
994
[(1)]The tax on bricks, falling in PCT heading 995[6901.0000], shall be
paid on fixed basis, 996[ ] at the rates specified in Table below:–

TABLE

S. Region or area Tax

No. payable
per month
(1) (2) (3)
1. Lahore, Rawalpindi and Islamabad districts Rs. 12,500
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

993
The new Tenth Schedule, the Eleventh Schedule and the Twelfth Schedule added through Finance Act, 2019.
994
Existing paragraph renumbered as paragraph (1) by Finance Act, 2020.
995
PCT heading “6901.1000” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020
996
Expression “on monthly return,” Omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020

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 Sales Tax Act, 1990
997
[(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.]

997
New paragraph (2) and its Table along with Note inserted by Finance Act, 2020.

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 Sales Tax Act, 1990

998
[The
ELEVENTH SCHEDULE
[See sub-section (7) 999and (7A) of section 3]

TABLE
The rates for withholding or deduction by the withholding agents 1000[are
specified as below provided that withholding of tax under this Schedule
shall not be applicable to the goods and supplies specified vide clauses
1001
[***] after the Table]

S. Withholding agent Supplier Rate or extent of

No. category deduction
(1) (2) (3) (4)
1. (a) Federal and provincial 1002[Active 1/5th of Sales Tax as shown
government departments; Taxpayers] on invoice
autonomous bodies; and
public sector organizations
(b) Companies as defined
in the Income Tax
Ordinance, 2001 (XLIX of
2001)
2. (a) Federal and provincial 2[Active 1/10th of Sales Tax as
government departments; Taxpayer] shown on invoice
autonomous bodies; and registered as a
public sector organizations wholesaler,
dealer or
(b) Companies as defined distributor
in the Income Tax
Ordinance, 2001 (XLIX of
2001)
3. Federal and provincial 2[persons Whole of the tax involved
government departments; other than or as applicable to
autonomous bodies; and Active supplies on the basis of
public sector organizations Taxpayers] gross value of supplies
4. Companies as defined in 2[persons 5% of gross value of
the Income Tax other than supplies
Ordinance, 2001 (XLIX of Active
1003
2001) [excluding Taxpayers]
companies exporting
surgical instruments]

998
Eleventh Schedule inserted by Finance Act, 2019.
999
After the expression “(7)”, the expression “and (7A)” inserted by Finance Act, 2025.
1000
The expression substituted by Finance Act, 2020.
1001
Expression omitted by Finance Act, 2022.
1002
Words substituted by Finance Act, 2020.
1003
Words added by Finance Act, 2022.

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 Sales Tax Act, 1990

S. Withholding agent Supplier Rate or extent of

No. category deduction
(1) (2) (3) (4)
5. Registered persons as Person Whole of sales tax
recipient of advertisement providing applicable
services advertisement
services
2
6. Registered persons [persons Whole of sales tax
purchasing cane molasses. other than applicable.
Active
Taxpayers]
1004 1006
[7 Registered persons Persons [80]% of the sales tax
. manufacturing lead supplying any applicable”.
batteries 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:
1005
[Respective
headings]
1007
Payment intermediaries Persons 2% of gross value of
[8. and couriers in respect of supplying supplies.”.
digitally ordered goods digitally
from within Pakistan. ordered goods
from within
Pakistan
through online
market place,

1004
New serial numbers 7 and 8 inserted by Finance Act, 2021.
1005
Words added by Finance Act, 2022.
1006
Expression substituted by Finance Act, 2024.
1007
Serial number (8), and entries relating thereto substituted by Finance Act, 2025.

201
 Sales Tax Act, 1990

website,
software
applications
1008
9. Registered persons Persons 80% of the sales tax
manufacturing cement supplying any applicable
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 any applicable
kind of coal
under chapter
27 (PCT
headings
2701.1100,
2701.1200,
2701.1900,
2701.2000,
2704.0010,
2704.0020,
2704.0090)
11. Registered persons Persons 80% of the sales tax
supplying any applicable
kind of waste
of paper and
paper board
(Respective
headings)

1008
New serial number(s) 9 to 13 inserted by Finance Act, 2024.

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 Sales Tax Act, 1990

12. Registered persons Persons 80% of the sales tax

supplying any applicable
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;

(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;

203
 Sales Tax Act, 1990
1009
(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
1010
[(ix) Supply of sand, stone, gravel/crush and clay to low cost housing
schemes sponsored or approved by Naya Pakistan Housing and
Development Authority.]

1009
Clause (viii) substituted by Finance Act, 2024.
1010
New clause (ix) inserted by Finance Act, 2020.

204
 Sales Tax Act, 1990
1011
[The
TWELFTH SCHEDULE
[See sub-section (2) of section 7A]

TABLE

S. No. Goods or class of goods PCT Rate

Heading
(1) (2) (3) (4)

1. All imported goods Respective 3% ad

subject to exclusions as Heading valorem
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,—
1012
[(i) Raw materials and intermediary goods imported by a
manufacturer for in-house consumption 1013[excluding
compressor scrap (PCT heading 7204.4940), motor scrap (PCT
heading 7204.4990) and copper cable cutting scrap (PCT
heading 7404.0090)]

(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;

1011
Twelfth Schedule inserted by Finance Act, 2019.
1012
Clause (i) substituted by Finance Act, 2020.
1013
Expression added by Finance Act, 2022.

205
 Sales Tax Act, 1990

1014
(iv) Cellular mobile phones or satellite phones [(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; 1015[***]

(viii)Silver, in un-worked condition;
(ix) 1016[The goods as specified in the Third Schedule on which
tax is paid on retail price basis.1017[;and
1018
[(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.
1019
[(xi) Electric vehicles (4 wheelers) CKD kits for small
cars/SUVs, with 50 kwh battery or below and LCVs with 150
kwh battery of below till 30th June, 2026;
(xii) Electric vehicles (4 wheelers) small cars/SUVs, with 50 kwh
battery or below and LCVs with 150 kwh battery of below in
CBU condition till 30th June, 2026”;
(xiii) Electric vehicles (2-3 wheelers and heavy commercial
vehicles) in CBU condition till 30th June, 2025; and
(xiv) motor cars of cylinder capacity upto 850cc]

(3) The value addition tax paid at import stage shall form part
of input tax, and the importer shall deduct the same from
the output tax due for the tax period, subject to limitations
and restrictions under the Act, for determining his net
liability. The excess of input tax over output tax shall be
carried forwarded to the next tax period as provided in
section 10 of the Act.
1020
[“(4) The refund of excess input tax over output tax, which is
attributable to tax paid under this Schedule, shall not be

1014
Expression inserted by Finance Act, 2024.
1015
The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020
1016
Clause (ix) inserted vide SRO 1321(I)/2019 dated 08 th November, 2019.
1017
The word “and” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
1018
Clause “(x)” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020
1019
New clauses inserted by Finance Act, 2021.
1020
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.”

206
 Sales Tax Act, 1990

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.]

[THIRTEENTH SCHEDULE”
1021

(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.
(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 steel electricity consumed
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

1021
New Thirteenth Schedule inserted by Finance Act, 2021.

207
 Sales Tax Act, 1990

to June of next year, in other cases, the tax actually paid shall not
be less than the liability determined on the basis of minimum
production for that year and in case of excess payment no refund
shall be admissible:
Provided also that in case of ship-breaking, the liability
against minimum production, or actual supplies, whichever is
higher, shall be deposited on monthly basis on proportionate basis
depending upon the time required to break the vessel;

(ii) the payment of tax on ship plates in aforesaid manner does not
absolve ship breakers of any tax liability in respect of items other
than ship plates obtained by ship-breaking;

(iii) the melters and re-rollers employing self-generated power shall

install a tamperproof meter for measuring their consumption. Such
meter shall be duly locked in room with keys in the custody of a
nominee of the Commissioner Inland Revenue having
jurisdiction. The officers Inland Revenue having jurisdiction shall
have full access to such meter;

(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.

208