Sales Tax Act, 1990

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 07th May, 2024
The amendments made through
Tax Laws (Amendment) Act, 2024

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…………………………………………………… ..7-29
Chapter-II ...................................................................................... ……....29
SCOPE AND PAYMENT OF TAX………………..…………………....29
3. Scope of tax....................................................................... ..……..29
3A. Omitted ............................................................................. …..…..35
3AA. Omitted ............................................................................. ..……..35
3AAA. Omitted ............................................................................. …..…..35
3B. Collection of excess sales tax etc. ..................................... ..……..35
4. Zero rating. ........................................................................ ..……..35
5. Change in the rate of tax. .................................................. ..……..37
6. Time and manner of payment. .......................................... …..…..37
7. Determination of tax liability. ........................................... ……....39
7A. Levy and collection of tax on specified goods on value addition....41
8. Tax credit not allowed. ..................................................... ……....42
8A. Joint and several liability of registered persons in supply chain where
tax unpaid.-………………………………………………….........44
8B. Adjustable input tax. ......................................................... ……....45
9. Debit and credit note. ........................................................ …..…..46
10. Refund of input tax. .......................................................... ……....46
11. Assessment of Tax and recovery of tax not levied or short levied or
erronously refunded............... ........................................... …..… .48
11A. Short paid amounts recoverable without notice.– ............. ……....50
11B. Assessment giving effect to an order.– ............................. ……....50
11C. Power of tax authorities to modify orders, etc. ................. ……....51
12. Omitted ............................................................................. ……....51
13. Exemption.― .................................................................... ……....51
Chapter-III..................................................................................... ……....54
REGISTRATION ......................................................................... ………54
14. Registration. – ................................................................... ……....54
14A. Repealed.– ......................................................................... ……....54
14AB. Discontinuance of gas and electricity connections. – ....... ……....55
15. Omitted ............................................................................. ……....55
16. Omitted ............................................................................. ..……..55
2
Sales Tax Act, 1990
17. Omitted ............................................................................. ..……..55

18. Omitted ............................................................................. …..…..55
19. Omitted ............................................................................. ..……..55
20. Omitted ............................................................................. ............55
21. De-registration, blacklisting and suspension of registration….. …55
21A. Active taxpayers list .......................................................... ………56
Chapter-IV .................................................................................... ……....57
BOOK KEEPING AND INVOICING REQUIREMENTS ......... ……....57
22. Records. ............................................................................ ……....57
23. Tax Invoices.- ................................................................... ……....59
24. Retention of record and documents for six years.- ........... ……....61
25. Access to record, documents, etc.-.................................... ……....61
25A. Drawing of samples.- ........................................................ ……....63
25AA. Transaction between Associates ....................................... ……....63
Chapter-V ...................................................................................... ………64
RETURNS .................................................................................... ……....64
26. Return. ............................................................................... ……....64
26A. Omitted ............................................................................. ……....66
26AA. Omitted .............................................................................. ……....66
26AB. Extension of time for furnishing returns ........................... ……....66
27. Special Returns. ................................................................ ……....67
28. Final Return. ..................................................................... ……....67
29. Return deemed to have been made. .................................. ……....67
Chapter-VI .................................................................................... ……....68
APPOINTMENT OF OFFICER OF SALES TAX & THEIR POWERS..68
30. Appointment of Authorities .............................................. ……....68
30A. Directorate General, (Intelligence and Investigation) Inland
Revenue……………......................................................... .......….70
30B. Directorate General Internal Audit. .................................. ……....70
30C. Inland Revenue Services Academy. ................................. ……....70
30CA. Directorate General of Digital Initiatives…………. ……....70
30D. Directorate General of Valuation. ..................................... ………71
30DD. Directorate of Post Clearance Audit . ............................... ………71
30DDD. Directorate General of Input Output Co-efficient Organization..71
30DDDA.Directorate-General of law…………………………………….71
30E. Powers and Functions of Directorate etc. ......................... ………71
31. Powers. .............................................................................. ………71
32. Delegation of powers ........................................................ ………72
32A. Audit by Special Audit Panels ......................................... ………73
3
Sales Tax Act, 1990
32AA. Omitted. ............................................................................. ………74

Chapter-VII ................................................................................... ………75
OFFENCES AND PENALTIES................................................... ………75
33. Offences and penalties. ..................................................... ………75
33A. Omitted ............................................................................. ………86
34. Default Surcharge. ............................................................ ………86
34A. Exemption from penalty and default surcharge. ............... ………88
35. Omitted. ............................................................................ ………88
35A. Omitted. ............................................................................ ………88
36. Omitted. ............................................................................ ………88
37. Power to summon persons to give evidence and produce documents
in inquiries under the Act. ................................................. ………88
37A. Power to arrest and prosecute ........................................... ………89
37B. Procedure to be followed on arrest of a person. ................ ………90
37C. Special Judges ................................................................... ………93
37D. Cognizance of Offences by Special Judges ...................... ………93
37E. Special Judge, etc. to have exclusive Jurisdiction ............ ………94
37F. Provisions of Code of Criminal Procedure, 1898, to apply……... 95
37G. Transfer of cases ............................................................... ………95
37H. Place of Sittings ................................................................ ………95
37I. Appeal to the High Court .................................................. ………95
38. Authorised officers to have access to premises, stocks, accounts and
records ............................................................................... ………96
38A. Power to call for information. ........................................... ………97
38B. Obligation to produce documents and provide information…….. 97
39. Omitted ............................................................................. ………98
40. Searches under warrant ..................................................... ………98
40A. Omitted. ............................................................................ ………99
40B. Posting of Inland Revenue Officer. .................................. ………99
40C. Monitoring of Tracking by Electronic or other means...................... 99
40D. Provisions relating to goods supplied from tax-exempt areas.-....100
40E. Licensing of brand name.-............................................................100
41. Omitted… ......................................................................... …… .101
42. Omitted. ............................................................................ ……..101
Chapter-VIII .................................................................................. ……..101
APPEALS ..................................................................................... ……..101
43. Omitted. ............................................................................ ……..101
43A. Pecuniary jurisdiction in appeals.………………………..…101-102
44. Omitted. ............................................................................ ……..102
4
Sales Tax Act, 1990
45. Omitted. ............................................................................ ……..102

45A. Power of the Board and Commissioner to call for records………102
45B. Appeals. ............................................................................ ……..103
46. Appeals to Appellate Tribunal. ......................................... …..…106
47. Reference to the High Court.........................................….…106-107
47A. Alternative dispute resolution. .......................................... ...107-108
Chapter-IX .................................................................................... ……..108
RECOVERY OF ARREARS ....................................................... ……..108
48. Recovery of arrears of tax.- .............................................. ……..108
Chapter-X ...................................................................................... ……..110
MISCELLANEOUS ..................................................................... ……..110
49. Sales of taxable activity or transfer of ownership.-- ......... ……..110
49A. Liquidators. ....................................................................... ……..110
50. Power to make rules. ......................................................... ……..112
50A. Computerized system. ....................................................... ……..112
50B. Electronic scrutiny and intimation……………………………....113
51. Bar of suits, prosecution and other legal proceedings. ..... ……..113
52. Appearance by authorised representative. ........................ ……..114
52A. e-intermediaries to be appointed. ...................................... ……..114
53. Estate of deceased person. ................................................ ……..115
54. Estate in bankruptcy. ......................................................... ……..115
55. Removal of difficulties. .................................................... ……..115
56. Service of order, decisions, etc. ........................................ ……..115
56A. Agreement for the exchange of information…………………….117
56AB. Real time access to information and databases………………….118
56B. Disclosure of information by a public servant .............. ……. ….119
56C. Prize schemes to promote tax culture………………………….. 119
57. Rectification of Mistake .................................................... ……..120
58. Liability for payment of tax in the case of private companies or
business enterprises ........................................................... ……..120
58A. Representatives. ................................................................ ……..121
58B. Liability and obligations of representatives. ..................... ……..123
59. Tax paid on stocks acquired before registration ............... ……..124
60. Powers to deliver certain goods without payment of tax .. ……..125
61. Repayment of tax in certain cases. .................................... ……..125
61A. Repayment of tax to persons registered in Azad Jammu and
Kashmir. ............................................................................ ……..125
62. Drawback allowable on re-export.-- ................................. ……..125
5
Sales Tax Act, 1990
63. Drawback on goods taken into use between importation and re-
exportation. ....................................................................... ……..126
64. Power to declare what goods are identifiable and to prohibit
drawback in case of specified foreign territory................. ……..126
65. Exemption of tax not levied or short levied as a result of general
practice .............................................................................. ……..126
66. Refund to be claimed within one year. ............................. ……..127
67. Delayed Refund. ............................................................... ……..128
67A. Payment of refund through sales tax refund bonds.. ......... ……..129
68. Liability of the registered person for the acts of his agent. ……..130
69. Issuance of duplicate of sales tax documents. .................. ……..130
70. Computation of limitation period...................................... ……..130
71. Special procedure. ............................................................. ……..131
72. Officers of Sales Tax to follow Board's orders, etc. ......... ……..131
72A. Reference to the authorities .......................................... ………...131
72B. Selection of audit by the Board ..................................... ………...132
72C. Reward to Inland Revenue Officers and Officials ........ ………...132
72D. Reward to whistleblowers ............................................. ………...132
73. Certain transactions not admissible. ................................. ……..133
74. Condonation of time-limit................................................. ……..135
74A. Validation. ......................................................................... ……..136
75. Application of the provisions of Act IV of 1969 to Sales Tax….136
76. Fee and service charges. ................................................... ……..136
77. Uniform……………. .................................................... …….…..137
SCHEDULES ........................................................................... ………...137
THE FIRST SCHEDULE (omitted)…. ........................................ ……..137
THE SECOND SCHEDULE (omitted) ........................................ ……..137
THE THIRD SCHEDULE ............................................................ ……..137
THE FOURTH SCHEDULE (omitted) ........................................ ……..141
THE FIFTH SCHEDULE ............................................................. ……..141
THE SIXTH SCHEDULE ............................................................ ……..147
THE SEVENTH SCHEDULE (omitted) .................................. ………...222
THE EIGHT SCHEDULE ........................................................ ………...222
THE NINTH SCHEDULE ....................................................... ………...234
THE TENTH SCHEDULE ....................................................... ………...236
THE ELEVENTH SCHEDULE ............................................... ………...239
THE TWELFTH SCHEDULE……………............................................243
THE THIRTEENTH SCHEDULE ........................................... ………...245
6
Sales Tax Act, 1990
The
Sales Tax Act, 1990
1[Act No. III of 1951 as Amended by Act VII of 1990]
An Act to consolidate and amend the law relating to the levy of a tax on the
sale 2[, importation, exportation, production, manufacture
or consumption] of goods
WHEREAS it is expedient to consolidate and amend the law relating to

the levy of a tax on the sale 3[, importation, exportation, Production,
manufacture or consumption] of goods;
It is hereby enacted as follows:-

4
[Chapter-I
PRELIMINARY
1. Short title, extent and commencement.― (1) This Act may

be called the Sales Tax 5[...] Act, 1990.
(2) It extends to the whole of Pakistan.

6
[(3) It shall come into force on such date as the Federal Government
may, by notification in the official Gazette, appoint.]
[2. Definitions.― In this Act, unless there is anything repugnant in

7
the subject or context,--
[(1) “active taxpayer” means a registered person who does not fall
8
in any of the following categories, namely:-
1
For Statements of Objects and Reasons see Gazette of Pakistan, dated the 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
Clauses (1) and (1A) substituted for clause (1) by Finance Act, 2015.
7
Sales Tax Act, 1990
(a) who is blacklisted or whose registration is suspended 9[***] in

terms of section 21;
(b) fails to file the return under section 26 by the due date for two
consecutive tax periods;
(c) who fails to file an Income Tax return under section 114 or
statement under section 115, of the Income Tax Ordinance,
2001(XLIX of 2001), by the due date; and-
(d) who fails to file 10[quarterly] or an annual withholding tax
statement under section 165 of the Income Tax Ordinance,
2001;
(1A) “Appellate Tribunal” means the Appellate Tribunal Inland

Revenue established under section 130 of the Income Tax Ordinance, 2001
(XLIX of 2001);]
(2) “appropriate officer” means an 11[officer of Inland Revenue]

authorised by the Board by notification in the official Gazette to perform
certain functions under this Act;
[(2A) “arrears”, in relation to a person, means, on any day, the sales

12
tax due and payable by the person under this Act before that day but which
has not yet been paid; ]
13
[(3) “associates (associated persons)” means, –
(i) subject to sub-clause (ii), where two persons associate and the
relationship between the two is such that one may reasonably
be expected to act in accordance with the intentions of the
other, or both persons may reasonably be expected to act in
accordance with the intentions of a third person;
9 The words “or is blocked” omitted by Finance Act, 2020.

10 The word substituted by Finance Act, 2020.
11
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment)
Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages
23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in
the Gazette of Pakistan Extraordinary Part I at pages 229 to 259.
12
Clause (2A) substituted by Finance Act, 2008. Earlier it was inserted by Tax Laws (Amendments) Ordinance, 1999. Originally it was inserted by
Finance Act, 1991.
13
Clause (3) substituted by Finance Act, 2008.
8
Sales Tax Act, 1990
(ii) two persons shall not be associates solely by reason of the fact
that one person is an employee of the other or both persons are
employees of a third person;
(iii) without limiting the generality of sub-clause (i) and subject to

sub-clause (iv), the following shall be treated as associates,
namely: –
(a) an individual and a relative of the individual;
(b) members of an association of persons;
(c) a member of an association of persons and the association,

where the member, either alone or together with an
associate or associates under another application of this
section, controls fifty per cent or more of the rights to
income or capital of the association;
(d) a trust and any person who benefits or may benefit under
the trust;
(e) a shareholder in a company and the company, where the

shareholder, either alone or together with an associate or
associates under another application of this section,
controls either directly or through one or more interposed
persons–
(i) fifty per cent or more of the voting power in the

company;
(ii) fifty per cent or more of the rights to dividends; or
(iii) fifty per cent or more of the rights to capital; and
(f) two companies, where a person, either alone or together

with an associate or associates under another application
of this section, controls either directly or through one or
more interposed persons –
9
Sales Tax Act, 1990
(i) fifty per cent or more of the voting power in both

companies;
(ii) fifty per cent or more of the rights to dividends in

companies; or
(iii) fifty per cent or more of the rights to capital in both

companies.
(iv) two persons shall not be associates under sub-clause

(a) or (b) of paragraph (iii) where the
14
[Commissioner] is satisfied that neither person may
reasonably be expected to act in accordance with the
intentions of the other.
(v) In this clause, “relative” in relation to an individual,

means–
(a) an ancestor, a descendant of any of the

grandparents, or an adopted child, of the
individual, or of a spouse of the individual; or
(b) a spouse of the individual or of any person

specified in sub-clause (a).]
[(3A) “association of persons” includes a firm, a Hindu undivided

15
family, 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” means the Federal Board of Revenue established

17
under section 3 of the Federal Board of Revenue Act, 2007;]
14
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment)
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, 2008. Earlier it was substituted by Finance Act, 2007.
10
Sales Tax Act, 1990
[(4A) “Chief Commissioner” means a person appointed as the chief

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

19[(4AA)
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

21
registration 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;
(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
18
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
19
New clause 4AA inserted by Finance Act, 2021.
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.
11
Sales Tax Act, 1990
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

24
fulfils each of following conditions, namely:−
(a) does not have an industrial gas or electricity connection;
(b) is located in a residential area;
(c) does not have a total labour force of more than ten workers; and
25
(d) annual turnover from all supplies does not exceed [eight]
million rupees;]
[(5AC) “CREST” means the computerized program for analyzing and

26
cross 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

28
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
CREST 5AC inserted by Finance Act, 2013.
27
Clause (6A) inserted by Tax Laws (Amendments) Ordinance, 1999.
28
Clause (6B) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2005.
12
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 29[under

section 26], 30[ 31[...] 32[....] means the 33[15th] day of the month following
the end of the tax period, or such other date as the 34[Board] may, by
notification in the official Gazette, specify 35[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

36
under section 52A for filing of electronic returns and such other documents
as may be prescribed by the Board from time to time, on behalf of a person
registered under section 14;]
37
[(9AA) ***]
(10) “establishment” means an undertaking, firm or company,

whether incorporated or not, an association of persons or an individual;
(11) “exempt supply” means a supply which is exempt from tax

under section 13;
[(11A) “FBR Refund Settlement Company 39[10a] Limited” means the

38
company with this name as incorporated under the 40[Companies Act, 2017
(XIX of 2017)], for the purpose of settlement of sales tax and income tax
29
The words and figure inserted by Finance Act, 1998.
30
The words and figure inserted by Tax Laws Amendment Ordinance, 2000, dated 24th May, 2000.
31
Comma and words etc. “, sub-section (6) of section 26A” omitted by Finance Act, 2004.
32
The expression “and section 26AA omitted by Finance, Act, 2016.
33
Substituted for “20th” by Finance Act, 1998
34
Substituted for “Federal Government” by Finance Act, 2008
35
Expression inserted through Finance Act, 2016.
36
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.
37
Clause (9AA) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001.
38
Existing clause re-numbered as clause (11B) and new clause (11A) inserted by Finance Supplementary (Second Amendment) Act, 2019
39
The word (Pvt) omitted by Finance Act, 2019.
40
Words substituted vide Finance Act, 2019
13
Sales Tax Act, 1990
refund claims including payment by way of issuing refund bonds under

section 67A’;]
[ (11B) “firm” means the relation between persons who have agreed to
41 10
share the profits of a business carried on by all or any of them acting for
all;]
(12) “goods” include 42[***] 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

43
150 of the Table-1 of the Sixth Schedule, means-
(a) a new industrial undertaking which is-
(i) setup on land which not previously been utilised for any
commercial, industrial or manufacturing activity and is free
from constraints imposed by any prior work;
(ii) built without demolishing revamping, renovating, upgrading,

remodeling or modifying any existing structure, facility or
plant;
(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
41
42
Expression omitted by Finance Act, 2023
43
New clause 12A inserted through Tax Laws (Amendment) Act, 2020 dated 30-3-2020.
14
Sales Tax Act, 1990
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 44

[ ... ] imports any goods
into Pakistan;
45
[(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; 46[47 ]
(d) 48
[…….] 49[Provincial Sales Tax levied on services rendered or
provided to the person; and]
(e) levied under the Sales Tax Act, 1990 as adapted in the State of
Azad Jammu and Kashmir, on the supply of goods received by
the person;]
[(14A) the expression “KIBOR” means Karachi Inter-Bank Offered

50
Rate prevalent on the first day of each quarter of the financial year;]
51
[(15) “Local Inland Revenue Office” means the office of
Superintendent of Inland Revenue or such other office as the Board may, by
notification in the official Gazette, specify;]
44
Word “lawfully” omitted by Finance Act, 2008
45
46
Word “and” added at the end of clause through Finance, Act, 2016.
47
Word “and” omitted through Tax Laws (Amendment) Ordinance, 2016.
48
Expression omitted through Finance, Act, 2016.
49
Expression re-inserted through Tax Laws (Amendment) Ordinance, 2016 having affect from 01st day of July, 2016..
50
51
Clause (15) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010,
15
Sales Tax Act, 1990
(16) “manufacture” or “produce” includes –
(a) any process in which an article singly or in combination with

other articles, materials, components, is either converted into
another distinct article or product or is so changed, transformed
or reshaped that it becomes capable of being put to use
differently or distinctly and includes any process incidental or
ancillary to the completion of a manufactured product;
(b) process of printing, publishing, lithography and engraving; and
(c) process and operations of assembling, mixing, cutting, diluting,

bottling, packaging, repacking or preparation of goods in any
other manner;
(17) “manufacturer” or “producer” means a person who engages,

whether exclusively or not, in the production or manufacture of goods
whether or not the raw material of which the goods are produced or
manufactured are owned by him; and shall include –
(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 52[:]
amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of
Pakistan Extraordinary Part I at pages 229 to 259.
52
Substituted for the semi-colon by Finance Ordinance, 2000
16
Sales Tax Act, 1990
53
[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

54
section 30;]
[(18A) “online market place” includes an electronic interface such

55
as a market place, e-commerce platform, portal or similar means which

facilitate sale of goods, including third party sale, in any of the following
manner, namely:–
(a) by controlling the terms and conditions of the sale;
(b) authorizing the charge to the customers in respect of
the payment for the supply; or
(c) ordering or delivering the goods.]
(19) “open market price” means the consideration in money which

that supply or a similar supply would generally fetch in an open market;
56
[(20) “output tax”, in relation to a registered person, means –
(a) tax levied under this Act on a supply of goods, made by the
person;
(b) tax levied under the Federal Excise Act, 2005 in sales tax mode
as a duty of excise on the manufacture or production of the
goods, or the rendering or providing of the services, by the
person;
57
[(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);]
53
Proviso inserted by Finance Ordinance, 2000.
54
Clause (18) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinance, 2010,
amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette of
55
New clause 18A inserted by Finance Act, 2021.
56
Clause (20) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2007.
57 Clause (c) substituted by Finance Act, 2020.
17
Sales Tax Act, 1990
58
[(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
59
or laws relating to Islamabad Capital Territory, which are declared by the

Federal Government, through notification in the official Gazette to be
Provincial Sales Tax for the purpose of input tax;]
(23) “registered office” means the office or other place of business

specified by the registered person in the application made by him for
registration under this Act or through any subsequent application to the
60
[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

61
liable to be registered under this Act:
58
59
60
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.
61
Clause (25) substituted by Finance Ordinance, 2002.
18
Sales Tax Act, 1990
Provided that a person liable to be registered but not registered under

this Act 62[...] 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;]
63
[(26) ***]
(27) “retail price”, with reference to the Third Schedule, means the
price fixed by the manufacturer 64[or importer, in case of imported goods]
65
[...], inclusive of all 66[duties], charges and taxes (other than sales tax
67
[...]) at which any particular brand or variety of any article should be sold
to the general body of consumers or, if more than one such price is so fixed
for the same brand or variety, the highest of such price 68[:].
69
[Provided that the Board may through a general order specify zones
or areas for the purpose of determination of highest retail price for any brand
or variety of goods.]
(28) “retailer” means a person 70[***] supplying goods to general

public for the purpose of consumption 71[:].
72
[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 73[***].]
74
[(28A) ***]
(29) “return” means any return required to be furnished under

Chapter-V of this Act;
62
Words “shall remain liable to further tax under sub-section (1A) of section 3 and” omitted by Finance Act, 2004.
63
Clause (26) omitted by Finance Ordinance, 2002.
64
The expression inserted vide Finance Act, 2019.
65
Words “or the importer” omitted by Finance Act, 2005. Earlier these were inserted by Finance Act, 2003.
66
Words and comma inserted by Finance Act, 2007.
67
Words “and octroi” omitted by Finance Act, 1998.
68
The “semicolon” has been substituted by” colon” in Finance Act, 2014
69
Inserted by Finance Act 2014.
70
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.
71
Substituted for the semi-colon by Finance Act, 2003.
72
Proviso inserted by Finance Act, 2003.
73
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.
74
Clause (28A) omitted by Finance Act, 2008. Earlier it was inserted by Finance Act, 1997.
19
Sales Tax Act, 1990
75
[(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

76
[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

77
entry recording of sales tax transactions in the books of account;]
(30) “Schedule” means a Schedule appended to this Act;
(31) “similar supply”, in relation to the open market price of goods,

means any other supply of goods which closely or substantially
78
[resembles] the characteristics, quantity, components and materials of the
aforementioned goods;
79
[(31A) “special audit” means an audit conducted under section 32A;]
(32) “Special Judge” means the Special Judge appointed under

Section 80[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

81
of goods as owner, including such sale or transfer under a hire purchase

agreement, and also includes –
75
76
Words inserted by Finance Act, 2022.
77
Clause (29A) renumbered as (29AA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006.
78
Substituted for “resemble” by Finance Act, 2008.
79
80
Words etc. inserted by Finance Act, 2010 w.e.f. June 5, 2010.
81
20
Sales Tax Act, 1990
(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;

82
[***]
(c) possession of taxable goods held immediately before a person
ceases to be a registered person 83[; 84[***]]
85
[(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 86[; and]
87[***]
Provided that the 88[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

89
buyers and sellers from the stage of first purchase or import to the stage of
final supply;]
90
[(34)] tax”, unless the context requires otherwise, means sales tax;]
[(35) “taxable activity”, means any economic activity carried on

91
by a person whether or not for profit, and includes – –
(a) an activity carried on in the form of a business, trade or

manufacture;
82
Word “and” omitted by Finance Act, 2015.
83
Semi-colon and word “and” substituted for colon by Finance Act, 2015. Semi-colon and word “and” substituted for colon by Finance Act, 2015.
84
85
Clause (d) added by Finance Act, 2015.
86
Semi colon and the word “and” substituted by Finance Act, 2022.
87 Sub-clause (e) omitted by Finance Act, 2023
88
The words “Federal Government” substituted with the expression vide Finance Act, 2019.
89
90
91
21
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, dishonestly or fraudulently and

without any lawful excuse (burden of proof of which excuse shall be upon
the accused) –
(i) doing of any act or causing to do any act; or
(ii) omitting to take any action or causing the omission to take any
action, 92[including the making of taxable supplies without
getting registration under this Act 93[[; or],]
92
Words etc. inserted by Finance Act, 2004.
93
Substituted for comma by Finance Act, 2005
22
Sales Tax Act, 1990
94 95 96
[(iii)] falsifying [or causing falsification [of] the sales tax
invoices,]
in contravention of duties or obligations imposed under this Act or rules or

instructions issued thereunder with the intention of understating the tax
liability 97[or underpaying the tax liability for two consecutive tax periods]
or overstating the entitlement to tax credit or tax refund to cause loss of tax;
98
[(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 99[...]

100
[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;
101
[(42) ***]
(43) “tax period” means a period of one month or such other period
as the 102[Board, with the approval of the Federal Minister-in-charge,] may
103
[, ] by notification in the official Gazette, specify;
[“(43A) 105[“Tier-1 retailer” means a retailer falling in any one or

104
more of the following categories, namely:-]
94
Sub-clause (iii) inserted by Finance Act, 2005.
95
96
Word “of” inserted by Finance Act, 2021.
97
Words inserted by Finance Ordinance, 2000.
98
Clause (38) omitted by Finance Act, 2004.
99
The words “In Pakistan” omitted by Finance Act, 2003.
100
The words and commas inserted by Finance Act, 1998.
101
102 102
The words “Federal Government” substituted with the expression vide Finance Act, 2019.
103
Substituted for semi-colon by Finance Act, 2008
104
Clause (43A) inserted through Finance Act, 2017
105
Expression substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 substituted expression read as under:
“Tier-1 retailers means”
23
Sales Tax Act, 1990
(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 106[twelve] hundred thousand; 107[ ]
(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”;] 108[ ]
109
[***]
110[(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; 111[***]
112
[(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
113
[***]
114
[(h) any other person or class of persons as prescribed by the
Board.]
115
[(44) “time of supply”, in relation to,–
106
Word “six” substituted by “twelve” though Tax Laws (Amendment) Act, 2020, dated 30-3-2020
107
The word “and” omitted vide Finance Act, 2019.
108
The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
109
Sub-clause (e) omitted by Finance Act, 2023
110
New clause (f) inserted by Finance Act, 2021.
111
Word “and” omitted by Finance (Supplementary) Act, 2022.
112
New clause (g) inserted by Finance (Supplementary) Act, 2022.
113
Sub-clause (ga) omitted by Finance Act, 2023
114
Existing clause (f) re-numbered as clause (h) by Finance Act, 2021.
115
Clause (44) (44 A) and (44 AA) substituted for clause (44) by Finance Act, 2008.
24
Sales Tax Act, 1990
(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” 116[****];
(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;
117
[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;]
118
[(45) ***]
(46) “value of supply” means:--
(a) in respect of a taxable supply, the consideration in money

including all Federal and Provincial duties 119[and taxes, if any,
which the supplier receives from the recipient for that supply
but excluding the amount of tax:
116
Words omitted by Finance Act, 2021.
117
Proviso added by Finance Act, 2013.
118
119
25
Sales Tax Act, 1990
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; 120[ ... ]
(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; 121[and]
122
[(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 123[excluding those as specified in
the Third Schedule], the value determined under section 25
124
[...] of the Customs Act, including the amount of customs-
duties and central excise duty levied thereon; 125[...]
(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
120
Words “and” omitted by Finance Ordinance, 2001.
121
Word inserted by Finance Ordinance, 2001.
122
Sub-clause (iii) inserted by Finance Ordinance, 2001.
123
The expression inserted vide Finance Act, 2019.
124
Words etc. “or 25B” omitted by Finance Act, 2004.
125
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.
26
Sales Tax Act, 1990
value determined by the Valuation Committee comprising

representatives of trade and the 126[Inland Revenue] constituted
by the 127[Commissioner] 128[;] 129[ ]
130
[(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;]
131
[(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.]
132
[(h) in case of supply of electricity by an independent power
producer 133[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; 134[***]
(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; 135[:]
126
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.
127
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.
128
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.
129
The word “and” omitted vide Finance Act, 2019.
130
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.
131
Sub-Clause (g) inserted by Finance Act, 1997.
132
Clauses (h) and (i) added by Finance Act, 2019.
133
The words inserted by Finance Act, 2020, shall be deemed to have been inserted with effect from 1st July, 2019.
134
The word “and” omitted by Finance Act, 2020, the word “and” and “new clause j” inserted by Finance Act, 2020.
135
For expression “and” expression “:” substituted and thereafter Explanation inserted by Finance Act, 2022.
27
Sales Tax Act, 1990
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
136[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.]
137
[Provided] that, where the Board deems it necessary it may, by
notification in the official Gazette, fix the value of any imported goods 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;]
[(46A) “whistleblower” means whistleblower as defined in section

138
72D of the Sales Tax Act, 1990;]
(47) “wholesaler” 139[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 140[a person supplying taxable
136
Expression inserted by Tax Laws (Second Amendment) Ordinance, 2022.
137
Provisos substituted by Finance Act, 2006.
138
Clause (46A) added by Finance Act, 2015.
139
140
The words, brackets and figures inserted by Finance Act, 1998.
28
Sales Tax Act, 1990
goods to 141[a person 142[who deducts income tax at source under the Income
Tax Ordinance, 2001 (XLIX of 2001)]] 143[...]; 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
144
[eighteen] per cent of the value of–
(a) taxable supplies made 145[…] by a registered person in the

course or furtherance of any 146[taxable activity] carried on by
him; and
(b) goods imported into Pakistan, 147[irrespective of their final

destination in territories of Pakistan].
148
[(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 149[or he is not an
active taxpayer], there shall be charged, levied and paid a further tax at the
rate of 150[four] percent of the value In addition to the rate specified in sub
sections (1), (1B), (2), (5), 151[(6) and section 4] provided that the Federal
Govt. may, by notification in the official Gazette, specify the taxable
supplies in respect of which the further tax shall not be charged, levied and
paid.]
141
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.
142
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.
143
Comma and words “, and a person who in addition to making retail supplies is engaged in wholesale business” omitted by Finance Act, 2008.
144
Substituted for seventeen vide Finance (Supplementary) Act, 2023.
145
Words “ in Pakistan” omitted by Finance Act, 2003
146
Words substituted by Finance Act, 1996.
147
Words inserted through Finance Act, 2017
148
Sub section (1A) inserted by Finance Act, 2013.
149
150
For the word “three” the word “four” substituted by Finance Act, 2023
151
The expression inserted through Finance Act, 2017
29
Sales Tax Act, 1990
152
[(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 153[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.]
154
[(2) Notwithstanding the provisions of sub-section (1): –
(a) taxable supplies 155[and import of goods] specified in the Third

Schedule shall be charged to tax at the rate of 156[eighteen] per
cent of the retail price 157[or in case such supplies 158[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 159[, or the importer,
in case of imported goods,] on each article, packet, container,
package, cover or label, as the case may be; 160[:]161[ ]
162[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
152
Clause (1B) substituted vide Finance Act, 2019.
153
Word substituted by Finance Act, 2021.
154
Sub section (2) substituted by Finance Act, 2001
155
The expression inserted through Finance Act, 2019.
156
157
158
The words “or imports” inserted vide Finance Act, 2019.
159
160
Substituted for “; and” by Finance Act, 2007.
161
The word ‘; and” omitted by Finance Act, 2014.
162
New proviso inserted by Finance (Supplementary) Act, 2023.
30
Sales Tax Act, 1990
such higher rate or rates on the retail price thereof, as may be

specified in the said notification: and
163
[Provided 164[further] that the 165[Board], may, by
notification in the official Gazette, exclude any taxable supply
166
[or import] from the said Schedule or include any taxable
supply 167[or import] therein; 168[…]
169
(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]
170
[(b) the 171[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 goods172[…], of the person making the

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

importing the goods.
173
[(3A) Notwithstanding anything contained in clause (a) of sub-
section (3), the 174[Board, with the approval of the Federal Minister-in-
charge,] may, by a notification in the official Gazette, specify the goods in
163
164
Word inserted by Finance (Supplementary) Act, 2023.
165
Word “Board” substituted by Finance (Supplementary) Act, 2022.
166
The words “or imports” inserted through Finance Act, 2019.
167
The words “or imports” inserted through Finance Act, 2019.
168
Word “and” omitted by Finance Bill, 2014.
169
Inserted by Finance Act, 2014
170
Clause (b) substituted by Finance Act, 2015.
171
Words “Federal Government” substituted by Finance Act, 2018.
172
Words “in Pakistan” omitted by Finance Act, 2003.
173
Sub-section 3A inserted by Finance Act, 1998.
174
31
Sales Tax Act, 1990
respect of which the liability to pay tax shall be of the person receiving the
supply.]
175
[(3B) Notwithstanding anything contained in sub section (1) and (3),
sales tax on the import and supply of the goods specified in the Ninth
Schedule to this Act shall be charged, collected and paid at the rates, in the
manner, at the time, and subject to the procedure and conditions as specified
therein or as may be prescribed, and the liability to charge, collect and pay
the tax shall be on the persons specified therein.]
176
[(4) ***]
177
[(5) The 178[Federal Government] may, in addition to the tax levied
under sub-section (1) 179[…], 180[…] sub-section (2) and sub-section (4),
levy and collect 181[“tax at such extra rate or amount”] not exceeding
182
[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.]
183
[(6) The Federal Government or 184[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.
185
[(7) The tax shall be withheld 11[***] at the rate as specified in the
Eleventh Schedule, by any person or class of persons 186[being purchaser of
goods or services 187[, 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
175
Inserted by Finance Act 2014
176
Sub section (4) omitted by Finance Act, 2008.
177
Sub section (5) inserted by Finance Act, 1999.
178
179
Word etc. “and (1 A)” omitted by finance Act, 2004.
180
Word etc. “clause (C) of” omitted by Finance Ordinance, 2002
181
182
183
Sub section (6) inserted by Finance Ordinance 2001
184
Substituted for “Central Board of Revenue” by Finance Act, 2007
185
Sub-section (7) substituted by Finance Act, 2019.
186
The words omitted and the expression inserted by Finance Act, 2020.
187
Expression inserted by Finance Act, 2022.
32
Sales Tax Act, 1990
restrictions as the Board may prescribe in this behalf through a notification

in the official Gazette 188[:]
[Provided that in case of the online market place facilitating the sale
of third party goods, the liability to withhold tax on taxable supplies of such
party at the rates specified in column (4) against S. No. 8 of the Eleventh
Schedule to the Sales Tax Act, 1990 shall be on the operator of such market
place.]
189
[(8) Notwithstanding anything contained in any law or notification
made thereunder 190[, 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 191[eighteen] per cent of the value of supply to
the CNG consumers, as notified by the Board from time to time, but
excluding the amount of tax, as provided in clause (46) of section 2.
[(9) Notwithstanding anything contained in sub-section (1), tax shall

192
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.]
188
Colon and proviso inserted by Finance Act, 2022.
189
Sub-section 8 Inserted by Finance Act, 2014.
190
Comma and words inserted by Finance Act, 2015.
191
192
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.
33
Sales Tax Act, 1990
193
[(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:
194
[****]
Provided further that from such date, and in such mode and manner,
as prescribed by the Board, all Tier-1 retailers shall integrate their retail
outlets with Board’s computerized system for real-time reporting of sales.]
195
[(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.]
196
[(10) *** repealed]
197[(11)
Notwithstanding anything contained in the Act, the
Board through Notification in the official Gazette, may require class
of persons to integrate their invoice issuing machines with the
Board’s Computerized System for real time reporting of sales in such
mode and manner and from such date as may be prescribed.]
198
[(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:
193
Sub-section (9A) substituted through Finance Act, 2019.
194
First proviso omitted by Finance Act, 2021.
195
New sub-section inserted by Finance Act, 2021.
196
Section 10 repealed which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021.
197
New sub-section (11) added by Finance Act, 2022.
198
New sub-section (12) added by Tax Laws (Second Amendment) Ordinance, 2022.
34
Sales Tax Act, 1990
Provided that different rates or amounts of tax may be specified for

different persons or class of persons.]
199
[3A. ***]
200
[3AA. ***]
201
[3AAA. ***]
202
[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.
203
[(2) Notwithstanding anything contained in any law or
judgement of a court, including the Supreme court and a High court, any
amount payable to the Federal Government under sub-section (1) shall be
deemed to be an arrear of tax or charge payable under this Act and shall be
recoverable accordingly and any claim for refund in respect of such amount
shall neither be admissible to the registered person nor payable to any court
of law or to any person under direction of the court.]
(3) The burden of proof that the incidence of tax or charge referred
to in sub-section (1) has been or has not been passed to the consumer shall
be on the person collecting the tax or charge.]
4. Zero rating.– Notwithstanding the provisions of section 3

204
[except those of sub-section (1A)], 205[...] 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;]
199
Section (3A) omitted by Finance Act, 2004.
200
Section (3AA) omitted by Finance Act, 2008.
201
Section (3AAA) omitted by Finance Act, 2002.
202
Old section (3A) renumbered as (3B) by Finance Act, 1996.
203
Sub-section (2) substituted by Finance Act, 2014.
204
205
Words “a Supply of” omitted by Finance Act, 2004.
35
Sales Tax Act, 1990
(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);
206
[(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]
207
[(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
208
[***] 209[; or]
210
(iii) [have been exported to a country specified by the
Federal Government, by Notification in the official
Gazette 211[:]
212
[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.]
206
Clause (c) substituted through Finance Act, 2019.
207
Clause (d) omitted by Finance Act, 2019.
208
209
Substituted for “full stop” by Finance Act, 1991.
210
Added by Finance Act, 1991.
211
Substituted for “full stop” by Finance Act, 1996.
212
Proviso added by Finance Act, 1996.
36
Sales Tax Act, 1990
5. Change in the rate of tax.– If there is a change in the rate of tax-
(a) a taxable supply made 213[***] by a registered person shall be

charged to tax at such rate as is in force at the time of supply;
(b) imported goods shall be charged to“tax at such rate as” is in

force,-
(i) in case the goods are entered for home consumption, on
the date on a 9[goods declaration] is presented under
section 79 of the Customs Act, 1969 (IV of 1969);
(ii) in case the goods are cleared from warehouse, on the date
on which a 214[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 [goods declaration] 216[under section 104 of the Customs Act,] the
215
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 217[and the provisions of the said Act 218[including
section 31A thereof], shall, so far as they relate to collection, payment and
enforcement 219[including recovery] of tax under this Act on such goods
where no specific provision exists in this Act, apply,].
213
Words “in Pakistan” omitted by Finance Act, 2003
214
Substituted for “bill of entry” by Finance Act, 2005
215
Substituted for “bill of entry” by Finance Act, 2005
216
Words, figure and comma inserted by the Finance Act, 1996.
217
The Words inserted in place of “IV of 1969” by Finance Act, 1996
218
The words inserted by Finance Act, 1998.
219
Words “including recovery” inserted by Finance Act, 2015.
37
Sales Tax Act, 1990
220
[(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.]
(2) The tax in respect of taxable supplies made 221[***] during a

tax period shall be paid by the registered person 222[by the date as prescribed
in this respect] 223[:]
224
[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.]
225
[(3) The tax due on taxable supplies 226[***] 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.]
220
Sub Section (1A) inserted by Sales Tax (amendment) Ordinance, 2002 dated June 07, 2002 and shall be deemed to have always been so inserted.
221
Words “ in Pakistan” omitted by Finance Act, 2013
222
Words substituted through Finance, Act, 2016.
223
Substituted for full stop by Finance Act, 1997
224
Proviso inserted by Finance Act, 1997
225
Sub Section III substituted by Finance Act, 1996.
226
Words “made in Pakistan” omitted by Finance Act, 2003.
38
Sales Tax Act, 1990
227
[4. ***]
228[(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) 229[Subject to the

provisions of 230[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 231[, subject to the provisions of section 73,] be entitled to
deduct input tax 232[paid 233[or payable 234[during the tax period for the
purpose of taxable supplies made, or to be made, by him] from the output
tax 235[excluding the amount of further tax under sub-section (1A) of section
3.] 236[ ] that is due from him in respect of that tax period and to make such
other adjustments as are specified in Section 9 237[:]
238
[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 239[***], he holds a tax invoice 240[in his name and
227
Sub Section 4 omitted by Finance Act, 1996.
228
229
Substituted for the word “ for by Finance Act, 2007
230
The word” section” substituted by the words and figure “section 8 and” in Finance Act 2014.
231
Comma and word etc, inserted by Finance Ordinance, 2001
232
Words inserted by Finance Act, 1996
233
234
235
Inserted by Finance Act 2014
236
Words etc “ excluding the amount of tax” omitted by Finance Act, 2004
237
Substituted for the full stop by Finance Act, 2003
238
Proviso substituted by Finance Act, 2008.
239
Words “in Pakistan” omitted by Finance Act, 2003.
240
39
Sales Tax Act, 1990
bearing his registration number] in respect of such supply 241[,

or in case of supply of electricity or gas, a bill bearing his
registration number and the address where the connection is
installed] 242[:]
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;
243
(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 79 244[, section 81] or section 104 of the Customs Act,
1969 (IV of 1969);]
245
(iii) [in case of goods purchased in auction, he holds a treasury
challan, 246[in his name and bearing his registration number,]
showing payment of sales tax;]
247
[(iv) ***]
248
[(3) Notwithstanding anything in sub-sections (1) and (2),
249
[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.]
250
[(4) Notwithstanding anything contained in this Act or rules made
there under, the 251[Federal Government] may, by notification in the official
Gazette, subject to such conditions, limitations or restrictions as may be
241
The expression substituted through Finance Act, 2019.
242
A Colon substituted the semi colon & Proviso added through Finance, Act, 2016.
243
Clause (ii) substituted by Finance Act, 2003.
244
Expression “, section 81” inserted by Finance Act, 2015.
245
Clause (iii) inserted by Finance Ordinance, 2002
246
247
Clause (iv) omitted by Finance Act, 1997.
248
Sub Section (3) inserted by Finance Ordinance, 2002.
249
The expression substituted by Finance Act, 2019.
250
Sub Section (4) inserted by Finance Act, 2007.
251
40
Sales Tax Act, 1990
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.]
252
[(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.]
253
[7A. Levy and collection of tax on specified goods on value
addition. – 254[(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.]
255
[(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.]
252
253
Section (7A) inserted by Finance Act, 2003.
254
Renumbered by Finance Act, 2004
255
Sub-section (2) substituted vide Finance Act, 2019.
41
Sales Tax Act, 1990
[8. Tax credit not allowed. – (1) Notwithstanding anything

256
contained in this Act, a registered person shall not be entitled to reclaim or

deduct input tax paid on –
257
[(a) the goods 258[or services] used or to be used for any purpose
other 259[***] for taxable supplies made or to be made by him;]
(b) any other goods or services which the 260[Federal Government]

may, by a notification in the official Gazette,
specify261[;262[***]]
263 264
[(c)] [***] the goods under 265[sub-section] (5) of section 3 266[:]
267
[(ca) the goods 268[or services] in respect of which sales tax has not
been deposited in the Government treasury by the respective
supplier;]
269
[(caa) purchases, in respect of which a discrepancy is indicated by
CREST or input tax of which is not verifiable in the supply
chain;]
270
[(d) fake invoices; 271[***]
(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 [;]
272
[(f) goods and services not related to the taxable supplies made by
the registered person.]
256
Section (8) substituted by Finance Act, 1996.
257
Clause (a) substituted by Sales Tax (amendment) Ordinance, 2001 dated February 07, 2001.
258
259
Words “for the manufacture of production of manufacture goods or,” omitted by Finance Act, 2007.
260
261
262
263
Clause (c) inserted by Finance Act, 1999.
264
Word “on” omitted by Finance Act, 2004.
265
Substituted for subsection (1A) and Finance Act, 2004.
266
Substituted for the full stop by Finance Act, 2004.
267
Clause (ca) inserted by Finance Act, 2006.
268
269
Clause (caa) inserted by Finance Act, 2013
270
Clause (d) inserted by Finance Act, 2004.
271
The word “and “omitted by Finance Act 2014.
272
Inserted by Finance Act, 2014.
42
Sales Tax Act, 1990
273
[(g) goods and services acquired for personal or non-business
consumption;]
274
[(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 275[pre-fabricated buildings and] such goods
acquired for sale or re-sale or for direct use in the production
or manufacture of taxable goods; 276[***]]
277
[(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] 278[;]
279
[(j) services in respect of which input tax adjustment is barred
under the respective provincial sales tax law;
(k) import or purchase of agricultural machinery or equipment

subject to sales tax at the rate of 7% under Eighth Schedule to
this Act;
(l) from the date to be notified by the Board, such goods and
services which, at the time of filing of return by the buyer, have
not been declared by the supplier in his return 280[or he has not
paid amount of tax due as indicated in his return; and
281
[(m) the input goods 282[or services] attributable to supplies made to
un-registered 283[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.]
273
274
275
276
277
278
Semi-colon substituted for full stop by Finance Act, 2015.
279
Clauses (j), (k) and (l) added by the Finance Act, 2015.
280
Expression added through Finance Act, 2016.
281
Clause (m) substituted through Finance Act, 2019.
282
The words inserted by Finance Act, 2020.
283
Word “person” substituted by Finance Act, 2022.
43
Sales Tax Act, 1990
(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.
284
[(4) ***]
285
[(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.]
286
[(6) Notwithstanding anything contained in any other law for the
time being in force or any provision of this Act, 287[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 288[***] under this Act.]
289
[(7) ***]
290
[8A. Joint and several liability of registered persons in supply
chain where tax unpaid.– Where a registered person receiving a taxable
supply from another registered person is in the knowledge or has reasonable
grounds to suspect that some or all of the tax payable in respect of that
supply or any previous or subsequent supply of the goods supplied would
go unpaid 291[, of which the burden to prove shall be on the department]
284
Sub-Section (4) omitted by Finance Act, 1999.
285
Sub-section (5) inserted by Finance Act, 1999.
286
Sub-section (6) inserted by Sales Tax (Amendment) Ordinance, 2001 dated February 7, 2001.
287
288
Words “or enrolled” omitted by Finance Act, 2004.
289
Sub-section (7) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001.
290
Section 8A inserted by Finance Act, 2006.
291
Expression added by Finance Act, 2015.
44
Sales Tax Act, 1990
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 292[:]]
293
[Provided that the Board may by notification in the official
gazette, exempt any transaction or transactions from the provisions of this
section.]
294
[8B. Adjustable input tax.– (1) Notwithstanding anything
contained in this Act, in relation to a tax period, a registered person 295[***]
shall not be allowed to adjust input tax in excess of ninety per cent of the
output tax for that tax period:
296
[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 297[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.
292
Substituted for full stop by Finance Act, 2007.
293
294
Section 8B inserted by Finance Act, 2007.
295
296
297
45
Sales Tax Act, 1990
(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.
298
[(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).]
299
[(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 300[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.
301
[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
298
New sub-section (4A) inserted by Finance Act, 2020.
299
New sub-section (6) inserted through Finance Act, 2019.
300
Expression substituted by Finance Act, 2021.
301
Section 10 substituted by Finance Act, 2007. Earlier it was also substituted by Finance Act, 1998 and Finance Act, 1996
46
Sales Tax Act, 1990
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:
302
[Provided that in case of excess input tax against supplies other
than zero-rated or exports, such excess input tax may be carried forward to
the next tax period, along with the input tax as is not adjustable in terms of
sub-section (1) of section 8B, and shall be treated as input tax for that period
and the Board may, subject to such conditions and restrictions as it may
impose, by notification in the official Gazette, prescribe the procedure for
refund of such excess input tax.]
Provided further that the Board may, from such date and subject to
such conditions and restrictions as it may impose, by notification in the
official Gazette, direct that refund of input tax against exports shall be paid
303
[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 304[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.]
302
303
The expression substituted through Finance Act, 2019.
304
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment)
47
Sales Tax Act, 1990
305
[11. Assessment of Tax & Recovery of Tax not levied or short
levied or erroneously refunded] .– (1) Where a person who is required to
file a tax return fails to file the return for a tax period by the due date or pays
an amount which, for some miscalculation is less than the amount of tax
actually payable, an officer of Inland Revenue shall, after a notice to show
cause to such person, make an order for assessment of tax, including
imposition of penalty and default surcharge in accordance with sections 33
and 34:
Provided that where a person required to file a tax return files the
return after the due date and pays the amount of tax payable in accordance
with the tax return along with default surcharge and penalty, the notice to
show cause and the order of assessment shall abate.
(2) Where a person has not paid the tax due on supplies made by
him or has made short payment or has claimed input tax credit or refund
which is not admissible under this Act for reasons other than those specified
in sub-section (1), an officer of Inland Revenue shall after a notice to show
cause to such person, make an order for assessment of tax actually payable
by that person or determine the amount of tax credit or tax refund which he
has unlawfully claimed and shall impose a penalty and charge default
surcharge in accordance with sections 33 and 34.
(3) Where by reason of some collusion or deliberate Act any tax or

charge has not been levied or made or has been short levied or has been
erroneously refunded, the person liable to pay any amount of tax or charge
or the amount of fund erroneously made shall be served with the notice
requiring him to show cause for payment of the amount specified in the
notice.
(4) Where, by reason of any inadvertence, error or misconstruction
any tax or charge has not been levied or made or has been short-levied or
has been erroneously refunded, the person liable to the amount of tax or
charge or the amount of refund erroneously made shall be served with a
notice requiring him to show cause for payment of the amount specified in
the notice;
305
Section 11 substituted by the Finance Act, 2012. Earlier it was substituted by Finance Act, 1996.
48
Sales Tax Act, 1990
Provided that, where a tax or charge has not been levied under this
sub section the amount of tax shall be recovered as tax fraction of the value
of supply.
306[(4A)
Where any person, required to withhold sales tax under the
provisions of this Act or the rules made thereunder, fails to withhold the tax
or withholds the same but fails to deposit the same in the prescribed manner,
an officer of Inland Revenue shall after a notice to such person to show
cause, determine the amount in default].
(5) No order under this section shall be made by an officer of

Inland Revenue unless a notice to show cause is given within five years, of
the 307[end of the financial year in which the relevant date falls], to the
person in default specifying the grounds on which it is intended to proceed
against him and the officer of Sales Tax shall take into consideration the
representation made by such person and provide him with an opportunity of
being heard:
Provided that order under this section shall be made within one
hundred and twenty days of issuance of show cause notice or within such
extended period as the Commissioner may, for reasons to be recorded in
writing, fix provided that such extended period shall in no case exceed
ninety days:
Provided further that any period during which the proceedings are
adjourned on account of a stay order or Alternative Dispute Resolution
proceedings or the time taken through adjournment by the petitioner not
exceeding sixty days shall be excluded from the computation of the period
specified in the first proviso.
(6) Notwithstanding anything in sub-section (1), where a

registered person fails to file a return, an officer of Inland Revenue, not
below the rank of Assistant Commissioner, shall subject to such conditions
as specified by the Federal Board of Revenue, determine the minimum tax
liability of the registered person.
306
New sub-section 4A added through Finance Act, 2016.
307
49
Sales Tax Act, 1990
(7) For the purpose of this section, the expression “relevant date”
means—
(a) the time of payment of tax or charge as provided under section

6; and
(b) in a case where tax or charge has been erroneously refunded,

the date of its refund.]
308
[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.]
309
[11B. Assessment giving effect to an order.– (1) Except where sub-
section (2) applies, where, in consequence of, or to give effect to, any
finding or direction in any order made under Chapter-VIII by the
Commissioner (Appeals), Appellate Tribunal, High Court or Supreme
Court an order of assessment of tax is to be issued to any registered person,
the Commissioner or an officer of Inland Revenue empowered in this behalf
shall issue the order within one year from the end of the financial year in
which the order of the Commissioner (Appeals), Appellate Tribunal, High
Court or Supreme Court, as the case may be, was served on the
Commissioner or officer of Inland Revenue.
(2) Where, by an order made under Chapter-VIII by the Appellate

Tribunal, High Court or Supreme Court, an order of assessment is remanded
wholly or partly and the Commissioner or Commissioner (Appeals) or
officer of Inland Revenue, as the case may be, is directed to pass a new
order of assessment, the Commissioner or Commissioner (Appeals) or
308
Section 11A Substituted by Finance Act, 2006. Earlier it was inserted by Finance Ordinance, 2002.
309
New section 11B added by Finance Act, 2018.
50
Sales Tax Act, 1990
officer of Inland Revenue, as the case may be, shall pass the new order
within one year from the end of the financial year in which the
Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as
the case may be, is served with the order:
Provided that limitation under this sub-section shall not apply, if an

appeal or reference has been preferred against the order passed by Appellate
Tribunal or a High Court.]
310
[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.]
311
[12. ***]
312
[13. Exemption.– (1) Notwithstanding the provisions of section 3,
supply of goods or import of goods specified in the Sixth Schedule shall,
310
New section 11C inserted by Finance Act, 2020.
311
Section 12 omitted by Finance Act, 1996.
312
Section 13 substituted by Finance Act, 1996.
51
Sales Tax Act, 1990
313
subject to such conditions as may be specified by the [Federal
Government], be exempt from tax under this Act 314[.]
315
[***]
(2) Notwithstanding the provisions of sub-section (1) –

316
[(a) the Federal Government may, whenever circumstances exist to
take immediate action for the purposes of national security,
natural disaster, national food security in emergency situations
and implementation of bilateral and multilateral agreements, by
notification in the official Gazette, exempt any supplies made
or imports, of any goods or class of goods from the whole or
any part of the tax chargeable under this Act, subject to the
conditions and limitations specified therein;]
317
[(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) 318[***].]
319
[(4) ***]
320
[(5) ***]
321
[(6) The 322[Board] shall place before the National Assembly all
notifications issued under this section in a financial year.
313
Substituted for “Board” by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999.
314
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.
315
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.
316
Clause (a) substituted through Finance Act, 2019.
317
Clause (b) omitted by Finance Act, 2015.
318
Expression “or, as the case may be, order made under clause (b) of that sub-section” omitted by Finance Act, 2015.
319
Sub-section (4) omitted by Finance Act, 2006.
320
Sub-section (5) omitted by Sales Tax (Amendment) Ordinance, 2000.
321
Sub-section (6) and sub-section (7) added by Finance Act, 2015.
322
Substituted for the words “Federal Government” through Finance Act, 2017
52
Sales Tax Act, 1990
(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 323[:
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.]
323
For the full stop a colon inserted and thereafter new provisos added through Finance Act, 2017
53
Sales Tax Act, 1990
Chapter-III
REGISTRATION
324
[14. Registration.— (1) Every person engaged in making taxable
supplies in Pakistan, including zero-rated supplies, in the course or
furtherance of any taxable activity carried on by him, falling in any of the
following categories, if not already registered, is required to be registered
under this Act, namely:-
(a) a manufacturer who is not running a cottage industry;
(b) a retailer who is liable to pay sales tax under the Act or rules
made thereunder, excluding such retailer required to pay sales
tax through his electricity bill under sub-section (9) of section 3;
(c) an importer;
(d) an exporter who intends to obtain sales tax refund against his
zero-rated supplies;
(e) a wholesaler, dealer or distributor; and
(f) a person who is required, under any other Federal law or

Provincial law, to be registered for the purpose of any duty or
tax collected or paid as if it were a levy of sales tax to be
collected under the Act.
(2) Persons not engaged in making of taxable supplies in Pakistan,

if required to be registered for making imports or exports, or under any
provisions of the Act, or any other Federal law, may apply for registration.
(3) The registration under this Act shall be regulated in such

manner as the Board may, by notification in the official Gazette, prescribe.]
325
[14A. *** repealed]
324
325
Section 14A repealed, which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021.
54
Sales Tax Act, 1990
326[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.]
327
[15. ***]
328
[16. ***]
329
[17. ***
18. ***
19. ***
20. ***]
330
[21. De-registration, blacklisting and suspension of
registration.– (1) The Board or any officer, authorized in this behalf, may
326
New section 14AB added by Finance Act, 2022.
327
Section 15 omitted by the Finance Act, 2014.
328
329
Sections 17 to 20 omitted by Finance Act, 2004.
330
55
Sales Tax Act, 1990
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

331
the [Commissioner] is satisfied that a registered person is found to have
issued fake invoices 332[...] or has 333[otherwise] committed tax fraud, he
may blacklist such person or suspend his registration in accordance with
such procedure as the Board may by notification in the official Gazette,
prescribe.]
334
[(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 335[...] be rejected through a self-speaking
appealable order and after affording an opportunity of being heard to such
person.]
336
[(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.]
337
[21A. Active taxpayers list.-The Board shall have the power to
maintain active taxpayers list in the manner as may be prescribed by rules
and such rules may provide for the restrictions and limitations to be imposed
on a person who ceases to be an active taxpayer.]
331
Substituted “for collector” by Finance Act, 2010
332
Comma and words “, evaded tax” omitted by Finance Act, 2005.
333
Word inserted by Finance Act, 2005.
334
Sub Section (3) inserted by Finance Act, 2011
335
Words and figure omitted by Finance Act, 2013.
336
337
56
Sales Tax Act, 1990
Chapter-IV
BOOK KEEPING AND INVOICING

REQUIREMENTS
338
[22. Records.– (1) A registered person making taxable supplies
shall maintain and keep at his business premises or registered office in
English or Urdu language the following records of goods purchased 339[,
imported] and supplied (including zero-rated and exempt supplies) made by
him or by his agent acting on his behalf in such form and manner as would
permit ready ascertainment of his tax liability during a tax period –
(a) records of supplies made shall indicate the description, quantity

and value of goods, name and address of the person to whom
supplies were made and the amount of the tax charged;
(b) records of goods purchased shall show the description, quantity

and value of goods, name, address and registration number of
the supplier and the amount of the tax on purchases;
340
[(c) records of goods imported shall show the description, quantity
and value of goods and the amount of tax paid on imports;]
341
[(d)] records of zero-rated and exempt supplies;
342
[(da) double entry sales tax accounts;]
343
[(e)] invoices, credit notes, debit notes, bank statements, 344[banking
instruments in terms of section 73,] inventory records,
345
[utility bills, salary and labour bills, 346[cash book,] rental
338
339
The comma and words inserted by Finance Act, 2005.
340
Clause (c) inserted by Finance Act, 2005.
341
Existing clause (c) re-lettered as clause (d) by Finance Act, 2005.
342
Clause (da) inserted by Finance Act, 2006.
343
Existing clause (d) re-lettered as clause (e) by Finance Act, 2005.
344
The words, comma and figure inserted by Finance Act, 2004.
345
The commas and words inserted by Finance Act, 1999.
346
57
Sales Tax Act, 1990
agreements, sale purchase agreements and lease agreements];

347
[...]
348
[(ea) Record relating to Gate passes, inward or outward and transport
receipts.]
349[(eb) Electronic version of records mentioned in clauses (a) to (ea)
of this sub-section.]
350
[(f)] such other records as may be specified by the Board:
351
[Provided that the persons paying 352[...] retail tax shall keep such
record as may be specified by the Board.]
353
[(1A) Notwithstanding anything in any other law for the time
being in force, the Board may require, by notification in the official Gazette,
a registered person or class of registered persons to declare and use only as
many number of business bank accounts as may be specified by the Board
in such notification to make or receive payments on account of purchase
and sale transactions for the purpose of this Act or rules made thereunder
and to make payment of due tax from such accounts only.]
(2) The Board may, by notification in the official Gazette, specify for
any class of taxable persons or any other person registered under this Act to
keep such other records for the purposes of this Act.
354
[(2A) The Board may, by notification in the Official Gazette, specify
for any class of taxable persons registered under this Act to use such
electronic fiscal cash registers as are approved by the Board in the manner
as may be prescribed.]
355
[(3) The Board may, by notification in the official gazette, prescribe
the procedure or software for electronically maintenance of records, filing
of sales tax returns or refunds and for any other matter or approve any
347
The word “and” omitted by Finance Act, 2013.
348
Clause (ea) inserted by Finance Act, 2013.
349
New clause (eb) inserted by Finance Act, 2021.
350
Existing clause (e) re-lettered as clause (f) by Finance Act, 2005
351
Proviso substituted by the Finance Act, 1997.
352
The words “turnover tax or” omitted by Finance Act, 2005.
353
Sub-section (1A) inserted by Finance Act, 2007.
354
355
Sub Section (3) substituted by Finance Act, 2003.
58
Sales Tax Act, 1990
software for electronic maintenance of records and filing of returns or

refunds by a person or class of such persons.]]
356
[(4) The registered persons, whose accounts are subject to audit under
the Companies Ordinance, 1984 (XLVII of 1984), shall be required to
submit a copy of the annual audited accounts, along with a certificate by the
auditors certifying the payment of due tax by the registered person.]
23. Tax Invoices.– (1) A registered person making a taxable supply

shall issue a serially numbered tax invoice at the time of supply of goods
containing the following particulars357[, in Urdu or English language,]
namely: –
(a) name, address and registration number of the supplier;
[358(b) name, address and registration number of the recipient

and in case of supplies by manufacturer or importer to
unregistered distributor, the NIC or NTN of such
unregistered distributors, as the case may.]
Explanation. – For the purpose of this clause, ordinary

consumer means a person who is buying the goods for his own
consumption and not for the purpose of re-sale or processing:
Provided that the condition of NIC or NTN shall be effective

from 1st August, 2019 359[:]
360[Provided further that the condition of NIC shall not apply
in the case of payment through debit or credit card or digital
mode;]
(c) date of issue of invoice;
356
357
The expression added through Finance Act, 2019.
358
Clause (b) substituted by Finance Act, 2022.
359
Colon substituted by Finance (Supplementary) Act, 2022.
360
Proviso inserted by Finance (Supplementary) Act, 2022.
59
Sales Tax Act, 1990
(d) description 361[including count, denier and construction in case

of textile yarn and fabric,] and quantity of goods;
(e) value exclusive of tax;
(f) amount of sales tax; and

362
[(ff) ***]
(g) value inclusive of tax:
Provided that the Board may, by notification in the official Gazette,

specify such modified invoices 363[...] for different persons or classes of
persons;
Provided further that not more than one tax invoice shall be issued
for a taxable supply364[.]
365
[***]
366
[(2) No person other than a registered person or a person paying
367
[*** 368[***]]369[retail tax] shall issue an invoice under this section.
370
[(3) A registered person making a taxable supply may, subject to
such conditions, restrictions and limitations as the Board may, by
notification in the official Gazette, specify, issue invoices to another
registered person electronically and to the Board as well as to the
371
[Commissioner], as may be specified.]
372
[(4) The Board may, by notification in the Official Gazette,
prescribe the manner and procedure for regulating the issuance and
authentication of tax invoices.]
361
The expression added through Finance Act, 2019.
362
Clause (ff) omitted by Finance Act, 2004.
363
Comma and words “, including replacement invoice,” omitted by Finance Act, 1997.
364
Full stop substituted by Finance (Supplementary) Act, 2022.
365
Proviso omitted by Finance (Supplementary) Act, 2022.
366
367
Words “turnover tax or” omitted by Finance Act, 2004.
368
Words “or retailer tax” added by Finance Act, 1997.
369
370
371
Substituted for “Collector” by Finance Act, 2010.
372
60
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. Access to record, documents, etc.– 377[(1) A person who is
required to maintain any record or documents under this Act 378[or any other
law] shall, as and when required by 5[Commissioner],produce record or
documents which are in his possession or control or in the possession or
control of his agent; and where such record or documents have been kept on
electronic data, he shall allow access to [the officer of Inland Revenue
authorized by the Commissioner] and use of any machine on which such
data is kept.]
379
[(2) The officer of Inland Revenue authorized by the
Commissioner, on the basis of the record, obtained under sub-section (1),
may, once in a year, conduct audit:
Provided that in case the Commissioner has information or sufficient

evidence showing that such registered person is involved in tax fraud or
evasion of tax, he may authorize an officer of Inland Revenue, not below
the rank of Assistant Commissioner, to conduct an inquiry or investigation
under section 38:
Provided further that nothing in this sub-section shall bar the officer
of Inland Revenue from conducting audit of the records of the registered
person if the same were earlier audited by the office of the Auditor-General
of Pakistan380[.]
381
[omitted]
373
374
Substituted for “Five” by Finance Act, 2010.
375
Words and Commas inserted by Finance Act, 2010.
376
377
Numbered by Finance Act, 2003
378
379
Substituted for “Such Officer of Sales tax” by Finance Act, 2010
380
Substituted for the colon through Finance Act, 2019.
381
Third proviso omitted by Finance Act, 2019.
61
Sales Tax Act, 1990
382
[(2A) For the purpose of sub-section (2) of section 25, the Commissioner
may conduct audit proceedings electronically through video links, or any
other facility as prescribed by the Board.]
383
[(3)] After completion of Audit under this section or any other
provision of this Act, the officer of Inland Revenue may, after obtaining the
registered person’s explanation on all the issues raised in the audit shall pass
an order under section 11 384[***].]
385
[(4) ***]
386
[(4A) ***]
387
[ (5) Notwithstanding the penalties prescribed in section 33, if a
registered person wishes to deposit the amount of tax short paid or amount
of tax evaded along with 388[default surcharge] voluntarily, whenever it
comes to his notice, before receipt of notice of audit, no penalty shall be
recovered from him:
Provided if a registered person wishes to deposit the amount of tax

short paid or amount of tax evaded along with [default surcharge] during
the audit, or at any time before issuance of show cause notice 389[***] he
may deposit the evaded amount of tax, 2[default surcharge] under section
34, and twenty five per cent of the penalty payable under section 33:
Provided further that if a registered person wishes to deposit the

amount of tax short paid or amount of tax evaded along with 390[default
surcharge] after issuance of show cause notice, he shall deposit the evaded
amount of tax, 2[default surcharge] under section 34, and full amount of the
penalty payable under section 33 and thereafter, the show cause notice, shall
stand abated.]
382
383
Sub Section 3 substituted by Finance Act, 2010.
384
Words, figures and comma “or section 36, as the case may be” omitted by Finance Act, 2015.
385
Sub Section 4 omitted by Finance Act, 2010.
386
Sub Section (4A) expired.
387
Sub Section (5) inserted By Finance Act, 2003.
388
Substituted for “Additional Tax” by Finance Act, 2005.
389
Words in lieu of Audit report omitted by Finance Act, 2010.
390
Substituted for the words “additional tax” by Finance Act, 2005.
62
Sales Tax Act, 1990
391
[Explanation.– For the purpose of sections 25, 38, 38A, 38B and
45A and for removal of doubt, it is declared that the powers of the Board,
Commissioner or officer of Inland Revenue under these sections are
independent of the powers of the Board under section 72B and nothing
contained in section 72B restricts the powers of the Board, Commissioner
or Officer of Inland revenue to have access to premises, stocks, accounts,
records, etc. under these sections or to conduct audit under these sections.]
392
[25A. Drawing of samples.– Where an authorized officer of
393
[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 394[Large Taxpayers Unit or
Regional Tax Office, as the case may be].]
395
[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.]
396
[(2) The Board may, by notification in official gazette, prescribe
rules for carrying out the purpose of sub-section (1).]
Chapter-V
391
Explanation added by Finance Act, 2013.
392
393
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.
394
Substituted for “Collectorate” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010,
395
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.
396
Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021.
63
Sales Tax Act, 1990
RETURNS
397
[26. 398[***] Return.– (1) Every registered person 399[...] shall
furnish not later than the due date a true 400[, complete] and correct return
in the prescribed form to a designated bank 401[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 402[;]
403
[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.]
404
[...]
405
(2) [....] omitted
406
[(3) A registered person may, subject to approval of the
407
[Commissioner Inland Revenue] having jurisdiction, file a revised return
397
Section 26 substituted by Finance Act, 1996
398
Word “monthly” omitted by Finance Act, 2006.
399
Words “making taxable supplies” omitted by Finance Act, 1999.
400
Comma and word inserted by Finance Act, 2020.
401
402
In the proposed amendment “a full stop is substituted for a colon” while colon is already appearing.
403
404
Proviso omitted by Finance Act, 2006
405
Sub-section (2) omitted through Finance Act, 2016.
406
Sub section (3) substituted by Finance Act, 2006.
407
Substituted for collector of Sales tax by Finance Act, 2010
64
Sales Tax Act, 1990
within 408[one hundred and twenty] days of the filing of return under sub-
section (1) or, as the case may be, sub-section (2), 409[ or under clause (a) or
clause (b) of section 27], to correct any omission or wrong declaration made
therein410[:]
411
[Provided that the approval under this sub-section shall not be
required if revised return is filed within sixty days of filing of return and
either the tax payable therein is more than the amount paid or the refund
claimed therein is less than the amount as claimed, under the return sought
to be revised.]
412
[(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
413
[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 414[Inland Revenue] during
the audit, or at any time before issuance of the show cause notice 415[...], he
may deposit the evaded amount of tax, [default surcharge] under section
(34), and twenty five percent of the penalty payable under section 33 along
with the levied return:
Provided further that in case the registered person wishes to deposit

the amount after issuance of show cause notice, he shall deposit the evaded
amount of sales tax 416[...],417[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.]
418
[(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,
408
Substituted for “ninety” by Finance Act, 2008.
409
410
Substituted for the full stop through Finance Act, 2019.
411
New proviso added through Finance Act, 2019.
412
Subsection (4) inserted by Finance Act, 2003.
413
Substituted for “Additional Tax” by Finance Act, 2005.
414
Substituted for “Sales tax” by Finance Act, 2010.
415
Words “in lieu of the audit report” omitted by Finance Act, 2010.
416
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.
417
Substituted for words “additional tax” by Finance Act, 2005.
418
65
Sales Tax Act, 1990
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.]
419
[26A. ***]
420
[26AA. ***]
421[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
419
Section 26 A omitted by Finance Act, 2004.
420
Section 26AA omitted by Finance Act, 2008.
421
New section 26AB inserted by Finance Act, 2021.
66
Sales Tax Act, 1990
period not exceeding fifteen days, unless there are exceptional

circumstances justifying a longer extension of time.
(5) An extension or further extension of time granted under sub-

sections (3) or (4), as the case may be, shall not, for the purpose of charge
of default surcharge under section 34, change the due date for payment of
sales tax under section 6.]
422
[27. Special Returns.– In addition to the return specified under
section 26 –
(a) a person registered 423[ 424[ ] 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 425[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.]
426
[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 427[commissioner] in the specified form in such manner and at such time
as directed by the 428[commissioner]].
29. Return deemed to have been made.– A return purporting to

be made on behalf of a person 429[by his duly appointed representative]
shall, for all purposes, be deemed to have been made by such person or
under his authority unless proved to the contrary.
Chapter-VI
422
Section 27 substituted by the Finance Ordinance, 2000.
423
Substituted for words and figure “under section 14” by sales tax (Amendments) Ordinance, 2000, dated September 05, 2000.
424
Words “or enrolled” omitted by Finance Act, 2004.
425
Substituted for “Collector” by Finance Act, 2010
426
427
428
429
67
Sales Tax Act, 1990
APPOINTMENT OF 430[OFFICERS OF SALES TAX] &

THEIR POWERS
431
[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;

432
[(ea) District Taxation Officer Inland Revenue;]
(f) an Assistant commissioner of Inland Revenue;

433
[(fa) Assistant Director Audit Inland Revenue;]
(g) an Inland Revenue Officer;
(h) a Superintendent Inland Revenue;
(i) an Inland Revenue Auditor Officer 434[...];

435
[(ia) an inspector Inland Revenue; and]
(j)an officer of Inland Revenue with any other designation.
430
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.
431
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.
432
Clause (ea) inserted through Finance Act, 2017
433
Clause (fa) inserted through Finance Act, 2017
434
435
Clause “(ia)” inserted by Finance Act, 2011
68
Sales Tax Act, 1990
(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.
436
[(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 437[, 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 438[, 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 439[, 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, 440[Inspector Inland
Revenue Officer] an officer of Inland Revenue with any other designation
shall be sub-ordinate to the Additional Commissioner Inland Revenue.]
441
[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
436
Sub-sections (2A) & (2B) inserted through Finance Act, 2017
437
Expressions inserted through Finance Act, 2017
438
439
Expression inserted through Finance Act, 2017
440
441
Section 30A substituted by Finance Act, 2018.
69
Sales Tax Act, 1990
Directors and such other officers as the Board may, by notification in the
official Gazette, 442[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.]
443[30B.
Directorate General 444[...] Internal Audit.– The Directorate
2
General [...] Internal Audit shall consist of a Director General and as many
Directors, Additional Directors, Deputy Directors and Assistant Directors
and such other officers as the Board, may by notification in the official
Gazette, appoint.
445[30C. Revenue Services Academy].--The 447[Inland
446[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.
448
[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.]
449[30D.
Directorate General of Valuation 450[...].--The Directorate
General of Valuation 5[...] shall consist of a Director General and as many
Directors, Additional Directors, Deputy Directors and Assistant Directors
442
Substituted for the word “post” through Finance Act, 2019.
443
444
Words “of inspection and” omitted by Finance Act, 2007.
445
Section 30C inserted by Finance Act, 2005.
446
Marginal heading substituted by Finance Act, 2022.
447
448
Section 30CA substituted by Finance Act, 2023
449
Section 30D inserted by Finance Act, 2005.
450
Words “and Post Clearance Audit” omitted by Finance Act, 2007.
70
Sales Tax Act, 1990
and such other officers as the Board, may by notification in the official
Gazette, appoint.
451
[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.]
452[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.]
453[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.]
454
[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 455[Inland Revenue] appointed under

section 30 shall exercise such powers and discharge such duties as are
conferred or imposed on him under this Act; and he shall also be competent
to exercise all powers and discharge all duties conferred or imposed upon
any officer subordinate to him:
Provided that, notwithstanding anything contained in this Act or the

rules, the Board may, by general or special order, impose such limitations
451
Section 30DD inserted by Finance Act, 2007.
452
New section 30DDD added through Finance Act, 2016.
453
New section 30DDDA added through Tax Laws (Amendment) Act, 2024.
454
Section 30E inserted by Finance Act, 2005.
455
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
in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259
71
Sales Tax Act, 1990
or conditions on the exercise of such powers and discharge of such duties

as it deems fit.
456
[32. Delegation of powers.– 457[(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.]
458
[(2) ***]
(3) The officer to whom any powers are delegated under this
section shall not further delegate such powers.]
459
[32A. 460[Audit by Special Audit Panels]. 461[(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;
456
457
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
458
Sub Section (2) omitted by the Finance Act, 2010.
459
460
Substituted for the words “Special Audit by Chartered Accountants or Cost Accountants” by Finance Act, 2015
461
Substituted for sub-section (1) by Finance Act, 2015
72
Sales Tax Act, 1990
(b) a firm of chartered accountants as defined under the Chartered

Accountants Ordinance, 1961 (X of 1961);
(c) a firm of cost and management accountants as defined under the

Cost and Management Accountants Act, 1966 (XIV of 1966);
or
(d) any other person as directed by the Board,
to conduct audit of a registered person or persons, including audit of refund

claims and forensic audit and the scope of such audit shall be determined by
the Board or the Commissioner Inland Revenue on a case-to-case 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
462
[Commissioner] may direct 463[special audit panel] appointed under sub-
section (1) to audit the records of any registered person.
(3) 464[Every member of special audit panel] appointed under sub-

section (1), shall have the powers of an officer of 465[Inland Revenue] under
sections 25, 37 and 38.
466
[(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.
462
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
in the Gazette of Pakistan Extraordinary part I at pages 229 to 259.
463
Substituted for the words “an auditor” by Finance Act, 2015
464
Substituted for the words “An Auditor” by Finance Act, 2015
465
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.
466
Sub-sections (4), (5) and (6) inserted by Finance Act, 2015.
73
Sales Tax Act, 1990
(6) The Board may prescribe rules in respect of constitution,

procedure and working of special audit panel.]
467
[32AA. ***]
467
Section 32 AA omitted by Finance Act, 2008, earlier it was inserted by Tax Laws Amendment Ordinance, 2000, dated may
24, 2000.
74
Sales Tax Act, 1990
Chapter-VII
OFFENCES AND PENALTIES
468
[33. Offences and penalties.– 469[...] Whoever commits any
offence described in column (1) of the Table below shall, in addition to and
not in derogation of any punishment to which he may be liable under any
other law, be liable to the penalty mentioned against that offence in column
(2) thereof: –
TABLE
Offences Penalties Section of the Act

to which offence
has reference
(1) (2) (3)
1. Where any person Such person shall pay a penalty of 26
470
fails to furnish a return [ten] thousand rupees:
within the due date.
Provided that in case a person files
a return within 471[ten] days of the
due date, he shall pay a penalty of
472
[two] hundred rupees for each
day of default.
2. Any person who fails to Such person shall pay a penalty of 23
issue an invoice when five thousand rupees or three per
required under this Act. cent of the amount of the tax
involved, whichever is higher.
3. Any person who un- Such person shall pay a penalty of 3, 7 and 23
authorizedly issues an ten thousand rupees or five per cent
invoice in which an of the amount of t
amount of tax is he tax involved, whichever is
specified. higher.

notify the changes of five thousand rupees.
material nature in the
particulars of
registration of taxable
activity.
468
469
Bracket and figure “one” omitted by Finance Act, 2008.
470
Substituted for the word “five” by Finance Act, 2019..
471
Substituted for the word “fifteen” by Finance Act, 2015.
472
Substituted for the word “one” by Finance Act, 2019.
75
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
5. Any person who fails to Such person shall pay a penalty of 3, 6, 7 and 48
deposit the amount of ten thousand rupees or five per cent
tax due or any part of the amount of the tax involved,
thereof in the time or whichever is higher:
manner laid down
under this Act or rules Provided that, if the amount of tax
or orders made there or any part thereof is paid within
473
under. [ten] days from the due date, the
defaulter shall pay a penalty of five
hundred rupees for each day of
default:
Provided further that no penalty

shall be imposed when any
miscalculation is made for the first
time during a year:
Provided further that if the amount

of tax due is not paid even after the
expiry of a period of sixty days of
issuance of the notice for such
payments by an officer of
474
[Inland Revenue, not below the
rank of Assistant Commissioner
Inland Revenue], the defaulter
shall, further be liable, upon
conviction by a Special Judge, to
imprisonment for a term which
may extend to three years, or with
fine which may extend to amount
equal to the amount of tax
involved, or with both.
6. Any person who repeats Such person shall pay a penalty of 7 and 26
erroneous calculation in five thousand rupees or three per
the return during a year cent of the amount of the tax
whereby amount of tax involved, whichever is higher.
less than the actual tax
due is paid.
7. Any person who is Such person shall pay a penalty of 14
required to apply for ten thousand rupees or five per cent
473
Substituted for the word “fifteen” by Finance Act, 2015.
474
Substituted for “Sales tax”, not below the rank of Assistant Collector of sales tax” by Finance Act, 2010
76
Sales Tax Act, 1990

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

second notice; and
(c) fails to produce the

third notice.
furnish the information ten thousand rupees.
77
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
required by the Board
through a notification
issued under sub-
section (5) of section
26.
11. Any person who, – Such person shall pay a penalty of 2(37) and General
twenty five thousand rupees or one
(a) submits a false or hundred per cent of the amount of
forged document to tax involved, whichever is higher.
475
any [officer of He shall, further be liable, upon
476
[Inland revenue]; or conviction by a Special Judge, to
(b) destroys, alters, imprisonment for a term which
mutilates or falsifies may extend to three years, or with
the records including a fine which may extend to an
sales tax invoice; or amount equal to the amount of tax
(c) Knowingly or
fraudulently makes
false statement, false
declaration, false
representation, false
personification, gives
any false information
or issues or uses a
document which is
forged or false.
12. Any person who denies Such person shall pay a penalty of 25, 38 , 478[38A
or obstructs the access twenty five thousand rupees or one and 40B]
of an authorized officer hundred per cent of the amount of
to the business tax involved, whichever is higher.
premises, registered He shall, further be liable, upon
office or to any other conviction by a Special Judge, to
place where records are imprisonment for a term which
kept, or otherwise may extend to five years, or with
refuses access to the fine which may extend to an
stocks, accounts or amount equal to the loss of tax
records or fails to involved, or with both.
present the same when
475
Any reference to “officer of Sales Tax” shall be construed as reference to an ‘officer of Inland Revenue” by virtue of Section 72A of the Sales Tax
Act, 1990.
476
Substituted for the words “Sales Tax” by the Finance Act, 2010
478
Substituted for “or 38A” by Finance Act, 2009
78
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
required under section
25, 38 477[38A or 40B].
13. Any person who Such person shall pay a penalty of 2(37)
commits, causes to twenty five thousand rupees or one
commit or attempts to hundred per cent of the amount of
commit the tax fraud, tax involved, whichever is higher.
or abets or connives in He shall, further be liable, upon
commissioning of tax conviction by a Special Judge, to
fraud. imprisonment for a term which
may extend to five years, or with
fine which may extend to an
amount equal to the loss of tax
14. Where any person Such person shall pay a penalty of 48
violates any embargo twenty five thousand rupees or ten
placed on removal of per cent of the amount of the tax
goods in connection involved, whichever is higher. He
with recovery of tax. shall, further be liable, upon
may extend to one year, or with
fine which may extend to amount
equal to the amount of tax
15. Any person who Such person shall pay a penalty of 31 and General
obstructs the twenty five thousand rupees or one
authorized officer in hundred per cent of the amount of
the performance of his tax involved, whichever is higher.
official duties.
16. Any person who fails Such person shall pay a penalty of 73
to make payment in the five thousand rupees or three per
manner prescribed cent of the amount of tax involved,
under section 73 of this whichever is higher.
Act.
17. Any person who fails Such person shall pay a penalty of 71 and General
to fulfil any of the five thousand rupees or three per
conditions, limitations cent of the amount of tax involved,
or restrictions whichever is higher.
prescribed in a
Notification issued
477
Substituted for “or 38A” by Finance Act, 2009
79
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
under any of the
provisions of this Act.
18. Where any officer of Such officer of 480[Inland Revenue] General
479
[Inland Revenue] shall be liable, upon conviction by
authorized to act under a Special Judge, to imprisonment
this Act, acts or omits for a term which may extend to
or attempts to act or three years, or with fine which may
omit in a manner extend to amount equal to the
causing loss to the amount of tax involved, or with
sales tax revenue or both.
otherwise abets or
connives in any such
act.
19. Any person who Such person shall pay a penalty of General.]
contravenes any of the five thousand rupees or three per
provision of this Act cent of the amount of tax involved,
481
[or the rules made whichever is higher. ]
thereunder] for which
no penalty has,
specifically, been
provided in this
section.
482
[ 20. *** ]
483
[21. Where any person Such person shall pay twice the General.
repeats an offence amount of penalty provided under
for which a penalty the Act for the said offence
is provided under
this Act
22. Any person who,- Such person shall pay a penalty of 50A.]
twenty-five thousand rupees or one
(a) knowingly and hundred per cent of the amount of
without lawful tax involved, whichever is higher.
authority gains He shall, further be liable, upon
access to or conviction by the Special Judge, to
attempts to gain imprisonment for a term which
access to the may extend to one year, or with
479
Words “Sales Tax” substituted for Inland Revenue by Finance (Amended) Ordinance, 2010.
480
Substituted for “Sales Tax” by Finance Act, 2010
481
Words added through Finance Act, 2016.
482
Serial No. 20 omitted by Finance Act, 2008.
483
Serial No. 21 and 22 inserted by Finance Act, 2006.
80
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
computerized fine which may extend to an
system; or amount equal to the loss of tax
(b) unauthorizedly
uses or
discloses or
publishes or
otherwise
disseminates
information
obtained from
the
computerized
system; or
(c) falsifies any

record or
information
stored in the
computerized
system; or
(d) knowingly or
dishonestly
damages or
impairs the
computerized
system; or
(e) knowingly or
dishonestly
damages or
impairs any
duplicate tape
or disc or other
medium on
which any
information
obtained from
the
computerized
system is kept
or stored; or
81
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
(f)
unauthorizedly
uses unique
user identifier
of any other
registered user
to authenticate
a transmission
of information
to the
computerized
system; or
(g) fails to comply
with or
contravenes
any of the
conditions
prescribed for
security of
unique user
identifier.
484
[23. Any person who (i) Such [specified goods] shall 40C(2)]
manufactures, be liable to outright confiscation
486
possesses, [***]. Any person committing
transports, the offence shall pay a penalty of
distributes, stores or twenty-five thousand rupees or one
sells 485[goods or hundred per cent of the amount of
class of goods as tax involved, whichever is higher.
specified by the He shall, further be liable, upon
Board under sub- conviction by a Special Judge, to
section (1) of section simple imprisonment for a term
40C] with which may extend to three years, or
counterfeited tax with additional fine which may
stamps, banderoles, extend to an amount equal to the
stickers, labels or loss of tax involved, or with both.
barcodes or without
tax stamps, (ii) In case of transport of
banderoles, stickers, [specified goods] with
labels or barcodes counterfeited tax stamps,
banderoles, stickers, labels or
barcodes, or without tax stamps,
484
S.No. 23 and entries relating thereto in columns (1), (2) and (3) inserted through Finance Act, 2017
485
Expression substituted by Finance Act, 2023
486
Expression omitted by by Finance (Supplementary) Act, 2022.
82
Sales Tax Act, 1990

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,
barcodes, the premises used for
such sale be sealed for a period not
exceeding fifteen days.
487
[“24. Any person, who is Such person shall pay a penalty of sub-section (9A) of
integrated for five hundred thousand rupees or section 3 and
monitoring, two hundred per cent of the amount section 40C.
tracking, reporting of tax involved, whichever is
or recording of sales, higher. He shall, further be liable,
production and upon conviction by a Special
similar business Judge, to simple imprisonment for
transactions with the a term which may extend to two
Board or its years, or with additional fine which
computerized may extend to two million rupees,
system, conducts or with both.
such transactions in
490
a manner so as to [Notwithstanding above,
avoid monitoring, the business premises of
tracking, reporting such person shall be liable to
or recording of such be sealed by an officer of
transactions, or Inland Revenue in the
issues an invoice manner prescribed.]
which does not carry
the prescribed
invoice number or Any person who abets
barcode 488[or QR commissioning of such offence,
code] or bears shall be liable, upon conviction by
duplicate invoice a Special Judge, to simple
number or imprisonment for a term which
counterfeit barcode, may extend to one year, or with
additional fine which may extend
487
New serial numbers “24”, “25”, “26” and “27” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
488
Words added by Finance Act, 2022.
490
Paragraph under serial number 24 inserted by Finance (Supplementary) Act, 2022.
83
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
489
[or QR code or to two hundred thousand rupees, or
defaces the with both.
prescribed invoice
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 pay a

required to integrate penalty up to one million rupees,
his business for and if continues to commit the 494
[***] section
monitoring, same offence after a period of 40C
tracking, reporting 491
[two] months after imposition of
or recording of sales, penalty as aforesaid, his business
production and premises shall be sealed 492[till
similar business such time he integrates his business
transactions with the in the manner as stipulated under
Board or its 493
[section 40C.]
computerized
system, fails to get
himself registered
under the Act, and if
registered, fails to
integrate in the
manner as required
under law.
495
[25A A person required Such person shall be liable to Sub-section (9A)
to integrate his pay: of section 3]
business as (i) penalty of five hundred
stipulated under thousand rupees for first
sub-section (9A) of default;
section 3, who fails (ii) penalty of one million
to get himself rupees for second default
registered under after fifteen days of order
the Act, and if for first default;
489
491
The word substituted by Finance Act, 2020.
492
The word substituted by Finance Act, 2020.
493
494
Expression omitted by by Finance Act, 2022.
495
Serial number substituted by Finance Act, 2022.
84
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
registered, fails to (iii) penalty of two million
integrate in the rupees for third default
manner as after fifteen days of order
required under the for second default;
law and rules (iv) penalty of three million
made thereunder.] rupees for fourth default
after fifteen days of order
for third default:
Notwithstanding above, the
business premises of such
person shall be liable to be
sealed by an officer of Inland
Revenue in the manner
prescribed:
Provided that if the
retailer integrates his business
with the Board’s Computerized
System before imposition of
penalty for second default,
penalty for first default shall be
waived by the Commissioner.]
26. Any person, being a Such person shall pay a penalty of sub-section (27) of
manufacturer or ten thousand rupees or five per cent section 2 and clause
importer of an item of the amount of tax involved, (a) of sub-section
which is subject to whichever is higher: (2) of section 3.
tax on the basis of
retail price, who fails Further, such goods shall also be
to print the retail liable to confiscation. However, the
price in the manner adjudication authority, after such
as stipulated under 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 of section 40D”;]
owner of the goods, ten thousand rupees or five per cent
which are brought to of the amount of tax involved,
Pakistan in violation whichever is higher:
of section 40D.
Further, such goods shall also be
liable to confiscation. However, the
adjudication authority, after such
85
Sales Tax Act, 1990

to which offence
has reference
(1) (2) (3)
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.
496
[28. Any person Such person shall pay a 56AB]
who is required penalty of twenty five
to share thousand rupees for first
information default and fifty thousand
under section rupees for each subsequent
56AB, fails to do default
so in the manner
as required under
the law
497[33A***].
498[34.
Default Surcharge.– (1) Notwithstanding the provisions of
section 11, if a registered person does not pay the tax due or any part thereof,
whether wilfully or otherwise, in time or in the manner specified under this
Act, rules or notifications issued thereunder or claims a tax credit, refund or
makes an adjustment which is not admissible to him, or incorrectly applies
the rate of zero per cent to supplies made by him, he shall, in addition to the
tax due, pay default surcharge at the rate mentioned below:—
(a) 499[...] 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 500[twelve per cent per annum], of the
amount of tax due or the amount of refund erroneously made;
501
[and]
496
New serial number 28 added by Finance Act, 2020.
497
Section 33A omitted by Finance Act, 2022.
498
Section 34 substituted by Finance Act, 2005. Earlier it was also substituted by Finance Act, 1996.
499
Words and comma “for the first six months of default,” omitted by Finance Act, 2008.
500
Words twelve substituted by Finance Act, 2018.
501
Word inserted by Finance Act, 2008.
86
Sales Tax Act, 1990
502
[(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.
502
Clause (b) omitted by Finance Act, 2008.
87
Sales Tax Act, 1990
503
[34A. Exemption from penalty and 504[default surcharge].--
The Federal Government may, by a notification in the official Gazette, or
the 505[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 506[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.]
507
[35. ***]
508
[35A. ***]
509
[36. ***]
37. Power to summon persons to give evidence and produce

documents in inquiries under the Act.– (1) Any officer of 510[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.
503
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.
504
Substituted for “additional tax” by Finance Act, 2005
505
Substituted for “Central Board of revenue” by Finance Act, 2007
506
507
508
Section 35A omitted by Finance Act, 1996. Earlier it was inserted by Finance Act, 1992.
509
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.
510
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.
88
Sales Tax Act, 1990
(3) Any inquiry before an officer of 511[Inland Revenue] shall be

deemed to be a judicial proceeding within the meaning of section 193 and
512
[228] of the Pakistan Penal Code (Act XLV of 1860).
513
[37A. Power to arrest and prosecute.-- (1) An officer of 514[Inland
Revenue not below the rank of an Assistant Commissioner of Inland
Revenue] or any other officer of equal rank authorised by the 515[Board] in
this behalf, who on the basis of material evidence has reason to believe that
any person has committed a tax fraud 516[or any offence warranting
prosecution under this Act] 517[…], 518[may cause arrest of such person.]
(2) All arrests made under this Act shall be carried out in
accordance with the relevant provisions of the Code of Criminal Procedure,
1898 (Act V of 1898).
519
[(3) ***]
(4) Notwithstanding anything contained in sub-section (1) to

subsection (3) or any other provision of this Act, where any person has
committed a tax fraud 520[or any offence warranting prosecution under this
Act], the 521[Commissioner] may, either before or after the institution of any
proceedings for recovery of tax, compound the offence if such person pays
the amount of tax due along with such 522[default surcharge] and penalty as
is determined under the provisions of this Act.
(5) Where the person suspected of tax fraud 523[or any offence
warranting prosecution under this Act] is a company, every director or
511
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
512
Substituted for the figure “223” by Finance Act, 1994
513
Section 37A substituted by Finance Act, 1996.
514
Substituted for “sales tax”, not below the rank of an Assistant Collector of Sales tax by Finance Act, 2010 w.e.f June 5, 2010, the same amendment
was made by Finance (amendment) Ordinance, 2010, promulgated as Ordinance No.III of 2010, dated February 6, 2010, published in the Official
Gazette of Pakistan Extraordinary part I at pages 23 to 53.
515
516
517
Words “in respect of a supply or supplies made by him” omitted by Finance Act, 2007.
518
Substituted for the words “may arrest such person” by Finance Act, 2003
519
Sub-section (3) omitted by Finance Act, 2005.
520
521
Substituted for “Collector” by Finance Act, 2010 w.e.f. june5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010,
522
523
89
Sales Tax Act, 1990
officer of that company whom the authorised officer has reason to believe
is personally responsible for actions of the company contributing the tax
fraud 524[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, 525[default
surcharge] and penalty imposed under this Act.]
526
[37B. Procedure to be followed on arrest of a person.-- (1) When
527
[an officer of Inland Revenue] authorized in this behalf arrests a person
under Section 37A, he shall immediately intimate the fact of the arrest of
that person to the Special Judge who may direct such Officer to produce that
person at considers such time and place and on such date as the Special
Judge considers expedient and such Officer shall act accordingly.
(2) Notwithstanding anything contained in the sub-section (1), any

person arrested under this Act shall be produced before the Special Judge
or, if there is no Special Judge within a reasonable distance, to the nearest
Judicial Magistrate, within twenty-four hours of such arrest, excluding the
time necessary for the journey from the place of arrest to the Court of the
Special Judge or, as the case may be, of such Magistrate.
(3) When any person is produced under sub-section (2) before the
Special Judge, he may, on the request of such person, after perusing the
record, if any and after giving the prosecution an opportunity of being heard,
admit him to bail on his executing a bond, with or without sureties, or refuse
to admit him to bail and direct his detention at such place as he deems fit:
Provided that nothing herein contained shall preclude the Special

Judge from cancelling the bail of any such person at a subsequent stage if,
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
524
525
526
527
Substituted for the words “the Sales Tax Officer” through Finance Act, 2019.
90
Sales Tax Act, 1990
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 528[an officer of Inland Revenue] holding inquiry against
that person if such officer makes a request in writing to that effect, and the
Special Judge or the Judicial Magistrate, after perusing the record, if any,
and hearing such person, is of the opinion that for the completion of inquiry
or investigation it is necessary to make such order:
Provided that in no case the period of such custody shall exceed

fourteen days.
(6) When any person is arrested under this Act, 529[an officer of
Inland Revenue] shall record the fact of arrest and other relevant particulars
in the register specified in sub-section (10) and shall immediately proceed
to inquire into the charge against such person and if he completes the inquiry
within twenty-four hours of his arrest, excluding the time necessary for
journey as aforesaid, he may, after producing such person before the Special
Judge or the nearest Judicial Magistrate, make a request for his further
detention in his custody.
(7) While holding an inquiry under sub-section (6), 530[an officer

of Inland Revenue] shall exercise the same powers as are exercisable by an
officer in charge of a police station under the Code of Criminal Procedure,
1898 (Act V of 1898), but such officer shall exercise such powers subject
to the foregoing provisions of this section while holding an inquiry under
this Act.
(8) If 531[an officer of Inland Revenue], after holding an inquiry as

aforesaid, is of the opinion that there is no sufficient evidence or reasonable
ground for suspicion against such person, he shall release him on his
528
529
530
531
91
Sales Tax Act, 1990
executing a bond, with or without sureties, and shall direct such person to
appear, as and when required, before the Special Judge, and make a report
to the Special Judge for the discharge of such person and shall make a full
report of the case to his immediate superior.
(9) The Special Judge to whom a report has been made under sub-
section, (8) may, after the perusal of record of the inquiry, and hearing the
prosecution, agree with such report and discharge the accused or, if he is of
the opinion that there is sufficient ground for proceedings against such
person, proceed with his trial and direct the prosecution to produce
evidence.
(10) 532[An officer of Inland Revenue] empowered to hold inquiry

under this section shall maintain a register to be called "Register of Arrests
and Detentions" in the prescribed form in which he shall enter the name and
other particulars of every person arrested under this Act, together with the
time and date of arrest, the details of the information received, the details of
things, goods or documents, recovered from his custody, the name of the
witnesses and the explanation, if any, given by him and the manner in which
the inquiry has been conducted from day to day; and, such register or
authenticated copies of its aforesaid entries shall be produced before the
Special Judge, whenever such Officer is so directed by him.
(11) After completing the inquiry, 533[an officer of Inland Revenue]

shall, as early as possible, submit to Special Judge a complaint in the same
form and manner in which the officer incharge of a police station submits a
report, before a court.
(12) Magistrate of the first class may record any statement or

confession during inquiry under this Act, in accordance with the provisions
of Section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898).
(13) Without prejudice to the foregoing provisions of this section,
534
[Board, with the approval of the Federal Minister-in-charge,] may, by
notification in the official Gazette, authorize any other officer working
under the 535[Board] to exercise the powers and perform the functions of
532
533
534
The expression substituted for the words “Federal Government” through Finance Act, 2019.
535
92
Sales Tax Act, 1990
536
[an officer of Inland Revenue] under this section, subject to such
conditions, if any, that it may deem fit to impose.]
537
[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.]
538[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
536
537
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.
538
Section 37D to 371 inserted by Finance Act, 2010.
93
Sales Tax Act, 1990
magistrate or any officer of Inland Revenue or any police officer to hold

such inquiry and submit a report, and such Magistrate or officer shall
conduct such inquiry and make report accordingly.
(4) If, after conducting such inquiry or after considering the report
of such Magistrate or officer, the Special Judge is of the opinion that– –
(a) there is no sufficient ground for proceeding, he may dismiss the

complaint, or
(b) there is sufficient ground for proceeding, he may proceed

against the person complained against in accordance with law.
(5) A special Judge or a Magistrate or an officer holding inquiry

under sub-section (3) may hold such inquiry, as early as possible, in
accordance with the provision of section 202 of the Code of Criminal
Procedure, 1898 (Act V of 1898).
37E. Special Judge, etc. to have exclusive jurisdiction.–

Notwithstanding anything contained in this Act or in any other law for the
time being in force,–
(a) no court other than the Special Judge having jurisdiction, shall
try an offence punishable under this Act;
(b) no other court or officer, except in the manner and to the extent
specifically provided for in this Act, shall exercise any power,
or perform any function under this Act;
(c) no court, other than the High Court, shall entertain, hear or
decide any application, petition or appeal under chapters XXXI
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.]
94
Sales Tax Act, 1990
37F. Provisions of Code of Criminal Procedure, 1898, to apply.–

(1) The provision of the Code of Criminal procedure, 1898 (Act V of
1898), so far as they are not inconsistent with the provisions of this Act,
shall apply to the proceedings of the court of a Special Judge and such court
shall be deemed to be a court of Sessions for the purpose of the said Code
and the provisions of Chapter XXIIA of the foresaid Code, so far as
applicable and with the necessary modifications, shall apply to the trial of
cases by the Special Judge under this Act.
(2) For the purposes of sub-section (1), the Code of Criminal

Procedure, 1898 (Act V of 1898), shall have effect as if an offence
punishable under this Act were one of the offences referred to in sub-section
(1) of section 337 of the said Code.
37G. Transfer of cases.– (1) Where more than one Special Judge
are appointed within the territorial jurisdiction of a High Court, the High
Court, and where not more than one Special Judge is so appointed, the
Federal Government, may by order in writing direct the transfer, at any stage
of the trial, of any case from the court of one Special Judge to the Court of
another Special Judge for disposal, whenever it appears to the High Court
or, as the case may be, the Federal Government, that such transfer may
promote the ends of justice or tend to the general convenience of the parties
or witnesses.
(2) In respect of a case transferred to a Special Judge under sub-

section (1), such Special Judge shall not by reason of the said transfer, be
bound to recall and rehear any witness whose evidence has been recorded
in the case before the transfer and may act upon the evidence already
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
95
Sales Tax Act, 1990
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).]
539
[38. Authorised officers to have access to premises, stocks,
accounts and records – (1) Any officer authorised in this behalf by the
Board 540[or the Commissioner 541[***]] shall have free access 542[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.
(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
539
Section 38 Substituted by Finance Act, 1996.
540
Words inserted by Finance Act, 2010 w.e.f. June 5, 2010.
541
The words “or the Collector” were omitted by Finance Act, 2009.
542
96
Sales Tax Act, 1990
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.]
543
[(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.]
544
[38A. Power to call for information.— The
545
[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 546[:]]
547
[Provided that the 548[Commissioner] may require any regulatory
authority to provide information concerning the licenses and authorizations
issued by it.]
549
[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 550[an
Assistant] 551[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 552[Inland Revenue] considers necessary or relevant
to the audit, inquiry or investigation under the Act;
(b) allow the officer of 553[Inland Revenue] to take extracts from
or copies of such documents or records; and
543
New sub-section (4) inserted by Finance Act, 2020.
544
545
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.
546
547
548
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010
549
550
Substituted for “a Deputy” by Finance Act, 2011
551
Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
552
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010,
553
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010
97
Sales Tax Act, 1990
(c) appear before the officer of 554[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 555[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 556[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 557[Inland
Revenue].]
558
[39. ***]
559
[40. Searches under warrant.– (1) Where any officer of 560[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
554
555
556
557
558
Section 39 omitted by Finance act, 1996.
559
560
98
Sales Tax Act, 1990
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 561[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).]
562
[40A. ***]
563
[40B. Posting of 6[Inland Revenue] Officer.– Subject to such
conditions and restrictions, as deemed fit to impose, the 564[Board],
565
[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 566[.] 567[omitted..]
568
[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, 569[barcodes,] etc. in
any such form, style and manner as may be prescribed by the Board in this
behalf.]
570
[(3) Such tax stamps, banderols, stickers, labels, barcodes etc., shall
be acquired by the registered person referred to in sub-section (2) from a
licensee appointed by the Board for the purpose, against price approved by
561
The word and comma, inserted by the Finance Act, 2005
562
Section 40A omitted by Finance Act, 2006.
563
564
Substituted for “Central Board of revenue” by Finance Act, 2007
565
Words “or Chief Commissioner” omitted by Finance Act, 2018.
566
Colon omitted and full stop inserted by Finance Act, 2018.
567
Proviso and explanation omitted by Finance Act, 2018.
568
Section 40C inserted by Finance Act, 2013.
569
Word and comma inserted by Finance Act, 2015
570
Sub-section (3) added by Finance Act, 2015.
99
Sales Tax Act, 1990
the Board, which shall include the cost of equipment installed by such
licensee in the premises of the said registered person.]
571
[40D. Provisions relating to goods supplied from tax-exempt
areas.-(1) The conveyance carrying goods supplied from the tax exempt
areas, shall be accompanied by such documents in respect of the goods
carried as may be prescribed under rules.
(2) The Regional Tax Office having jurisdiction may establish

check-posts on the routes originating from tax-exempt areas for the purpose
of examining the goods carried and the documents related thereto, An
officer not below the rank of Inspector, Inland Revenue, as authorized by
the Commissioner, Inland Revenue, and assigned to such check-posts, may
stop vehicle on such routes as coming from tax-exempt areas and examine
documents for ascertaining their validity and conformity to the goods
carried.
(3) In the absence of the prescribed documents or any discrepancy

in such documents, the goods so carried shall be seized along with the
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, 572[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.”;]
573[40E.
Licensing of brand name.- (1) Manufacturers of the
specified goods shall be required to obtain brand licence for each brand or
571
New Section “40D” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
572
573
New section 40E inserted by Finance Act, 2021.
100
Sales Tax Act, 1990
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.]
574
[41. ***
42. ***]
Chapter-VIII
575
[APPEALS]
576
[43. ***
577[43A.
Pecuniary jurisdiction in appeals.- (1) Subject to other
provisions of this Act,-
(a) an appeal to the Commissioner (Appeals) shall lie where

the value of assessment of tax or, as the case may be, refund
of tax does not exceed ten million rupees; or
(b) an appeal to the Appellate Tribunal Inland Revenue shall
lie where the value of assessment of tax or, as the case may
be, refund of tax exceeds ten million rupees.
(2) A person or, as the case may be, officer of Inland Revenue
aggrieved by an order of the Commissioner (Appeals) in cases under clause
(a) of sub-section (1) may file a reference before the High Court in
574
Sections 41 and 42 omitted by Finance Act, 1996
575
Heading of chapter Adjudication substituted for cases by finance act 1996
576
Sections 43 and 44 omitted by Finance Act, 1996
577
New section 43A added through Tax Laws (Amendment) Act, 2024.
101
Sales Tax Act, 1990
accordance with section 133 of the Income Tax Ordinance, 2001(XLIX of

2001).
(3) A person or, as the case may be, officer of Inland Revenue
aggrieved by an order of the Appellate Tribunal in cases under clause (b) of
sub-section (1) may file a reference before the High Court in accordance
with section 133 of the Income Tax Ordinance, 2001 (XLIX of 2001).
(4) The cases pending before the Commissioner (Appeals) having

the value of assessment of tax or, as the case may be, refund of tax exceeding
ten million rupees shall on and from the 16th day of June, 2024 stand
transferred to the Appellate Tribunal Inland Revenue.
(5) All cases transferred from the Commissioner (Appeals) to the

Appellate Tribunal under sub-section (4) shall be decided by the Appellate
Tribunal within the period provided for under section 132 of the Income
Tax Ordinance, 2001 (XLIX of 2001) which period shall commence from
the 16th day of June, 2024.]
44. ***]
578
[45. ***]
579
[45A. Power of the Board 580[and 581[Commissioner]] to call for
records.-- (1) The Board may, of its own motion 582[, 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
583
[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
578
Section 45 omitted by Finance Act, 2010
579
Section 45A added by Finance Act, 1993.
580
Substituted for “Collector and Collector (Adjudication)” by Finance Act, 2005. Earlier these were substituted for “and Collector” by Finance Act,
2003.
581
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
Pakistan Extra Ordinary Part I at pages 229 to 259.
582
583
102
Sales Tax Act, 1990
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 584[this section] shall be initiated in a case
where an appeal under Section 585[45B] or Section 46 is pending.
(3) No order shall be made under this Section after the expiry of
586
[five] years from the date of original decision or order of the sub-ordinate
officer referred to in sub-section (1).
587
[(4) The 588[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 589[Inland Revenue] subordinate to
him, and pass such order as he may deem fit.]]
590
[45B. Appeals.– 591[(1) Any person, other than the Sales Tax
Department, aggrieved by any decision or order passed under sections 10,
11, 25, 36, or 66, by an officer of Inland Revenue may, within thirty days
of the date of receipt of such decision or order, 592[if the value of the
assessment or, as the case may be, refund of the tax does not exceed ten
million rupees] prefer appeal to the Commissioner Inland Revenue
(Appeals):
Provided that an appeal preferred after the expiry of thirty days may
be admitted by the Commissioner Inland Revenue (Appeals) if he is
satisfied that the appellant has sufficient cause for not preferring the appeal
within the specified period 593[.]
584
Substituted for “sub-section (1)” by Finance Act, 2008
585
Substituted for the figure “45” by Finance Ordinance, 2002
586
Substituted for “three” by Finance Ordinance, 2000
587
Sub-section (4) substituted by Finance Act, 2005
588
Substituted for the word “Collector” by Finance Act, 2010
589
Substituted for the words “Sales Tax” by Finance, Act, 2010
590
Section 45B inserted by Finance Ordinance, 2002
591
Subsection (1) Substituted by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance
(Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in
the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made through
Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009,
592
Expression inserted by Tax Laws (Amendment) Act, 2024.
593
For the colon a full stop substituted and second proviso omitted by Finance Act, 2020.
103
Sales Tax Act, 1990
9
[****]
594
[(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.]
595 596
[ [(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 597[Commissioner Inland Revenue] (Appeals) may, after

giving both parties to the appeal an opportunity of being heard, pass such
594
New sub-sections (1A and 1B) inserted by Finance Act, 2020.
595
Existing sub-section (1A) re-numbered as (1C) by Finance Act, 2020.
596
Inserted through Finance Act, 2013
597
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
104
Sales Tax Act, 1990
order as he thinks fit, confirming, varying, altering, setting aside or

annulling the decision or order appealed against 598[:]
599
[Provided that such order shall be passed not later than 600[one
hundred and twenty] days from the date of filing of appeal or within such
extended period as the 601[Commissioner] (Appeals) may, for reasons to be
recorded in writing fix:
Provided further that such extended period shall, in no case, exceed

602
[sixty] days 603[:]]
604
[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.
605
[(4) ***]
606
[(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.]
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
598
Colon inserted through Finance, Act, 2005
599
Two provisos inserted by Finance Act, 2005
600
Substituted for “ninety” by Finance Act, 2008.
601
promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan
602
Substituted for “one hundred and twenty” by Finance Act, 2009, earlier it was substituted for “ninety” by Finance Act, 2008.
603
604
Proviso inserted by Finance Act, 2009
605
Sub-section (4) omitted y Finance Act, 2006.
606
105
Sales Tax Act, 1990
46. Appeals to Appellate Tribunal.– 607[(1) Subject to section

43A, any person, other than an SOE, aggrieved by any order passed by an
officer of Inland Revenue, or the Board or Commissioner (Appeals) under
this Act or the rules made there under may, within thirty days of the receipt
of such order, prefer an appeal to the Appellate Tribunal or, as the case may
be, a reference to the High Court: Provided that where 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.]
608
[(2) The Appellate Tribunal may admit, hear and dispose of the
appeal as per procedure laid down in sections 609[131 and 132 of the Income
tax Ordinance, 2001(XLIX of 2001, and rules made thereunder.]
610 611
[ (2A)***]
612
[(3) ***
(4) ***
(5) ***
(6) ***
(7) ***
(8) ***
(9) ***]
613
[47. Reference to the High Court.- (1) Within thirty days of the
communication of the order of the Appellate Tribunal or, as the case may
be, Commissioner (Appeals), the aggrieved person or the Commissioner
may prefer an application in the prescribed form along with a statement of
607
Sub-section (1) substituted by Tax Laws (Amendment) Act, 2024.
608
Sub-Section (2) substituted by Finance Act, 2009.
609
Substituted for “194A, 194B and 194C of the customs Act, 1969 (IV of 1969)” by Finance Act, 2010.
610
Sub Section (2A) inserted by Finance Act w.e.f. June 5, 2010.
611
Sub-section (2A) omitted by Tax Laws (Amendment) Act, 2024.
612
Sub-sections (3), (4), (5), (6), (7), (8) and (9) omitted by Finance Act, 2009.
613 Section 47 substituted by Tax Laws (Amendment) Act, 2024.
106
Sales Tax Act, 1990
the case and complete record of the Appellate Tribunal or, as the case may
be, Commissioner (Appeals) to the High Court, stating any question of law
or a mixed question of law and fact arising out of such order.
(2) Provisions of section 133 of the Income Tax Ordinance, 2001

(XLIX of 2001) and rules made thereunder relating to a reference to the
High Court shall, mutatis mutandis, apply to references to the High Court
under this Act.]
614
[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).
614
Section 47A substituted by Tax Laws (Amendment) Act, 2024.
107
Sales Tax Act, 1990
(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.]
Chapter-IX
RECOVERY OF ARREARS
48. Recovery of arrears of tax.--(1) 615[Subject to sub-section
(1A), where] any amount of tax 616[...] is due from any person, the officer
of 617[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;
618
[(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;
615
Words etc. “levied, penalty imposed or demand raised under any bond or other instrument executed under this Act” omitted by Finance Ordinance,
2002.
616
Substituted for “where” 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
618
Clause (ca) inserted by Finance Act, 1999.
108
Sales Tax Act, 1990
(e) attach and sell or sell without attachment any movable or

immovable property of the registered person from whom tax is
due 619[; and]
620
(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
621
[:]
Provided that the Commissioner Inland Revenue or any officer of

Inland Revenue shall not issue notice under this section or the rules made
thereunder for recovery of any tax due from a taxpayer if the said taxpayer
has filed an appeal under section 45B 622[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 623[ten] per cent of the amount of tax
due has been paid by the taxpayer.]
624
[(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 625[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.
619
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.
620
Word “may” omitted by Finance Act, 2007.
621
For the full stop a colon substituted and thereafter proviso added through Finance Act, 2017
622
Expression inserted by Tax Laws (Amendment) Act, 2024.
623
Word ten substituted by Finance Act, 2018.
624
625
Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
109
Sales Tax Act, 1990
626
[(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
627
[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.
628
[(2) In the case of sale or transfer of ownership of a taxable activity
or part thereof to another registered person as an ongoing concern, the
taxable goods or part thereof shall be transferred to the new owner through
a zero-rated invoice and the sales tax chargeable thereon shall be accounted
for and paid by the registered person to whom such taxable activity or part
thereof is transferred.]
[49A. Liquidators. – (1) Every person (hereinafter referred to as a

629
“liquidator”) who is –
(a) a liquidator of a company;
(b) a receiver appointed by a Court or appointed out of

Court;
626
627
Section 49 Substituted by Finance Act, 1996
628
Sub-section (2) substituted through Finance Act, 2016.
629
110
Sales Tax Act, 1990
(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
630
[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.
(6) Where the proceeds of sale of any asset are less than the amount
notified by the 631[Commissioner] under sub-section (2), the application of
sub-sections (4) and (5) shall be limited to the proceeds of sale.
630
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
631
111
Sales Tax Act, 1990
(7) This section shall have effect notwithstanding anything

contained in any other law for the time being in force.]
50. Power to make rules.– 632[(1)] The Board may, by notification

in the official Gazette, make rules for carrying out the purposes of this Act
633
[, including rules for charging fee for processing of return, claims and
other documents and for preparation of copies thereof.]
634
[(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 635[or may be placed
regularly on the official website maintained by the Board.]
636
[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 637[matters such as
grant of] authorization, suspension and cancellation of authorization and for
security of the information transmitted or received through the
computerized system.]
638
[(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.
632
Brackets and figure inserted by Finance Act, 2008.
633
Comma and words inserted by Finance Act, 1994
634
635
636
637
Substituted for “their” by Finance Act, 2007
638
Sub-section (3) and (4) inserted by Finance Act, 2007.
112
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.]
639
[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.
640
[(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.]
639
Section 50B inserted by Finance Act 2014
640
113
Sales Tax Act, 1990
52. Appearance by authorised representative.– A registered

person required to appear before the Appellate Tribunal or an officer of
641
[Inland Revenue] in connection with any proceedings under this Act may,
in writing, authorise any person642[having such qualification as may be
prescribed] to represent him or appear on his behalf.
643
[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
641
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.
642
Words inserted by Sales Tax (Amendment) Ordinance, 2000, dated September 5, 2000
643
114
Sales Tax Act, 1990
information or document or declaration, without prejudice to any other

action that may be taken against him under the relevant provisions of the
law.
(6) The Board may, by notification in the official Gazette,

prescribe rules for the conduct and transaction of business of e-
intermediaries, including their appointment, suspension and cancellation of
appointment, subject to such conditions as specified therein.]
53. Estate of deceased person.– The tax liability of a deceased

registered person under the Act shall be the first charge on his estate in the
hands of his successors.
54. Estate in bankruptcy.– (1) If a registered person is declared

bankrupt, the tax liability under this Act shall pass on to the estate in
bankruptcy if it continues to operate the business.
(2) If tax liability is incurred by an estate in bankruptcy, the tax is

deemed to be a current expenditure in the operations of the estate in
bankruptcy and shall be paid before the claims preferred by other creditors
are settled.
644
[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
645
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;
644
Substituted vide Finance Ordinance, 2001
645
Section 56 substituted vide Finance Act, 2010
115
Sales Tax Act, 1990
(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; 646[..]
(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) 647[; 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 648[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 sent by registered [Post to any office
or place of business of the person in Pakistan; 649[..]
(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) 650[; 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
646
The words “or” omitted through Finance Act, 2017
647
Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017
648
The words substituted by Finance Act, 2020.
649
The words “or” omitted through Finance Act, 2017
650
Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017
116
Sales Tax Act, 1990
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.]
651
[56A. Agreement for the exchange of information 652[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.
653
[(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.
654
[(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.]
651
Sections 56A, 56B and 56C added by Finance Act, 2015
652
653
654
117
Sales Tax Act, 1990
655
[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
655
New section 56AB inserted by Finance Act, 2020.
118
Sales Tax Act, 1990
allowing consumers to update the ratio of sharing of a

connection or the particulars of users, as the case may be;
and
(f) any other agency, authority, institution or organization,

notified by the Board.
(2) The Board shall make arrangements for laying the infrastructure
for real-time access to information and database under sub-section (1) and
aligning it with its own database in the manner as may be prescribed.
(3) Until real-time access to information and database is made

available under sub-section (1), such information and data shall be provided
periodically in such form and manner as may be prescribed.
(4) Subject to section 56B, all information received under this

section shall be used only for tax purposes and kept confidential.]
Disclosure of information by a public servant.─ (1) Any

656[56B.
information acquired under any provision of this Act shall be confidential

and no public servant 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

657
respect of invoices issued by tier-1 retailers integrated with FBR online
656
Section 56B substituted through Finance Act, 2016.
657
119
Sales Tax Act, 1990
system randomly and in case of any discrepancy, all the relevant provisions
of this Act shall apply accordingly.]
658
[57. Rectification of Mistake.– (1) The officer of Inland Revenue,
Commissioner, the Commissioner (Appeals) or the Appellate Tribunal may,
by an order in writing, amend any order passed by him to rectify any mistake
apparent from the record on his or its own motion or any mistake brought
to his or its notice by a taxpayer or, in the case of the Commissioner
(Appeals) or the Appellate Tribunal, the Commissioner.
(2) No order under sub section (1) which has the effect of
increasing an assessment, reducing a refund or otherwise applying
adversely to the taxpayer shall be made unless the taxpayer has been given
a reasonable opportunity of being heard.
(3) Where a mistake apparent on the record is brought to the notice

of the officer of Inland Revenue, Commissioner or Commissioner
(Appeals), as the case may be, and no order has been made under sub section
(1), before the expiration of the Financial year next following the date on
which the mistake was brought to their notice, the mistake shall be treated
as rectified and all the provisions of this Act shall have effect accordingly.
(4) No order under sub-section (1) shall be made after five years
from the date of the order sought to be rectified.]
659
[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.
658
Section 57 is substituted by Finance Act, 2013.
659
120
Sales Tax Act, 1990
(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.]
660
[58A. Representatives.– (1) For the purpose of this Act and subject
to sub-sections (2) and (3), the expression “representative” in respect of a
registered person, means: –
(a) where the person is an individual under a legal disability, the

guardian or manager who receives or is entitled to receive
income on behalf, or for the benefit of the individual;
(b) where the person is a company (other than a trust, a Provincial

Government, or local authority in Pakistan), a director or a
manager or secretary or agent or accountant or any similar
officer of the company;
(c) where the person is a trust declared by a duly executed

instrument in writing whether testamentary or otherwise, any
trustee of the trust;
(d) where the person is a Provincial Government, or local authority

in Pakistan, any individual responsible for accounting for the
receipt and payment of money or funds on behalf of 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
660
Section 58A and 58B inserted by Finance Act, 2008
121
Sales Tax Act, 1990
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) 661[subject to sub-section (4), where a person is a non-resident

person, the representative of the said person for the purpose of this Act, for
a financial year in which the relevant tax period falls, shall be any person in
Pakistan]: – –
(a) who is employed by, or on behalf of, the non-resident person;
(b) who has any business connection with the non-resident person;
(c) from or through whom the non-resident person is in receipt of

any income, whether directly or indirectly;
(d) who holds, or controls the receipt or disposal of any money

belonging to the non-resident person;
(e) who is the trustee of the non-resident person; or
661
The expression substituted by and Explanation added by Finance Act, 2020.
122
Sales Tax Act, 1990
(f) who is declared by the 662[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
662
123
Sales Tax Act, 1990
such a representative or a person as to the amount to be so retained, such

representative or person may obtain from the 663[Commissioner] a
certificate stating the amount to be so retained pending final determination
of the tax liability, and the certificate so obtained shall be his authority for
retaining that amount.
(5) Every representative shall be personally liable for the payment

of any tax due by the representative in a representative capacity if, while the
amount remains unpaid, the representative: –
(a) alienates, charges or disposes of any moneys received or

accrued in respect of which the tax is payable; or
(b) disposes of or parts with any moneys or funds belonging to the

person that is in the possession of the representative or which
comes to the representative after the tax is payable, if such tax
could legally have been paid from or out of such moneys or
funds.
(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.]
664
[59. Tax paid on stocks acquired before registration.– The tax
665
[. . .] 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 666[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
663
Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010
664
Section 59 inserted by Finance Act, 1999. Earlier it was omitted by Finance Act, 1997. Earlier it was substituted through Finance Act, 1996.
665
Commas and words “, other than the turnover tax” omitted by Finance Act, 2004.
666
Substituted for “section 18” by Finance Act, 2004
124
Sales Tax Act, 1990
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.]
667
[60. Powers to deliver certain goods without payment of tax.–
Subject to such conditions, limitations or restrictions as it thinks fit to
impose, 668[Federal Government] may authorise the 669[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;
670
[(ii) registered manufacturer-cum-exporters who import raw
materials and intermediary products for further manufacture of
goods meant for export;]
671
[(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 672[...]
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.
673
[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
667
Section 60 Substituted by Finance Act, 1998.
668
669
Substituted for “delivery” by Finance Act, 1999
670
Clause (ii) substituted by the Finance Act, 1999.
671
Clause (iii) omitted by Finance Act, 1999.
672
Words “the importation of” omitted by Finance Ordinance, 2002
673
125
Sales Tax Act, 1990
importation are re-exported outside Pakistan and such goods as are capable
of being identified, seven-eighth of such tax shall, except as otherwise
hereinafter provided, be repaid as drawback, and the provisions of Customs
Act, 1969 (IV of 1969), relating to drawback of customs duties shall, so far
as may be apply to such tax, as they apply for the purposes of that Act:
Provided that no such drawback shall be repaid unless the re-export

is made within a period of two years from the date of importation as shown
in the records of the Custom House:
Provided further that the Board may, on sufficient cause being

shown, in any case extend the said period by a further period of one year.
63. Drawback on goods taken into use between importation

and re-exportation.– Notwithstanding anything contained in section 62,
the repayment of sales tax as drawback in respect of goods which have been
taken into use between importation and re-exportation shall be subject to
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
126
Sales Tax Act, 1990
respect of any supply the 674[Federal Government] is satisfied that

inadvertently and as a general practice: –
(a) tax has not been charged in any area on any supply which was
otherwise taxable, or according to the said practice the amount
charged was less than the amount that should have actually
been charged;
(b) the registered person did not recover any tax prior to the date it
was discovered that the supply was liable to tax; and
(c) the registered person started paying the tax from the date when
it was found that the supply was chargeable to tax;
It may, by a notification in the official Gazette, direct that the

tax not levied or short levied as a result of that inadvertent
practice, shall not be required to be paid for the period prior to
the discovery of such inadvertent practice.
66. Refund to be claimed within one year.– No refund of tax

claimed to have been paid or over paid through inadvertence, error or
misconstruction 675[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 676[:]
677
[Provided that in a case where a registered person did not deduct
input tax within the relevant tax period, the 678[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]:]
674
675
676
Substituted for the full-stop by Finance Ordinance, 2001
677
678
127
Sales Tax Act, 1990
679
[ Provided 680[further] that in a case where the refund has become
due on account of any decision or judgement of any officer of 681[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
Tribunal682[:]]
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.]
683
[Provided also that no refund shall be admissible under this
section if incidence of tax has been passed directly or indirectly to the
consumer.]
684
[67. Delayed Refund.– Where a refund due under section 10 is not
made within 685[the time specified in section 10 from the date] of filling of
686
[refund claim], there shall be paid to the claimant in addition to the
amount of refund due to him, a further sum equal to 687[KIBOR] per annum
of the amount of refund due, from the date following the expiry of [the time
specified 688[as aforesaid], to the day preceding the day of payment of
refund:
Provided that where there is reason to believe that a person has

claimed the refund which is not admissible to him, the provision regarding
the payment of such additional amount shall not apply till the investigation
of the claim is completed and the claim is either accepted or rejected 7[:]
689
[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
679
680
Word inserted by Finance Ordinance, 2002.
681
Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
682
683
684
685
Substituted for “thirty days” by Finance Act, 1997
686
Substituted for “return” by Finance Act, 2007
687
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.
688
Substituted for the words and figures “in section 10 from the date” by Finance Act, 2007.
689
Colon substituted for full stop and new proviso inserted by Finance Act, 2021.
128
Sales Tax Act, 1990
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.]
690[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 691[ ] 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 692[ ] 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.
690
New section 67A inserted by Finance Supplementary (Second Amendment) Act, 2019
691
The word “private” omitted by Finance Act, 2019.
692
The word “private” omitted by Finance Act, 2019.
129
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 693[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.
694
[69. Issuance of duplicate of sales tax documents.– An officer of
695
[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.
693
The expression substituted for the words “Federal Government” by Finance Act, 2019.
694
Section 69 substituted by the Finance Act, 2008.
695
Substituted for the words “Sales Tax not below the rank of Assistant Collector” by the Finance Act, 2010
130
Sales Tax Act, 1990
Special procedure.– 697[(1)] 698[The Board] may, by

696[71.
notification in the official Gazette, prescribe special procedure for scope and
payment of tax, registration, book keeping and invoicing requirements and
returns, etc. in respect of such supplies as may be specified therein.]
699
[(2) ***]
700
[(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.]
701
[72. Officers of 702[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.]
703
[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
696
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.
697
Section 71 re-numbered as sub-section (1) by Finance Act, 1999
698
The expression “Notwithstanding anything contained in this Act, the Federal Government” substituted through Finance Act, 2019.
699
Sub-section (2) omitted by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999. Earlier inserted by Finance Act, 1999.
700
701
702
Section 72 inserted by Finance Act, 1998.
9 Substitued for the Words “Sales Tax” by Finance Act, 2010.
703
Substituted for “sales” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010,
131
Sales Tax Act, 1990
Inland Revenue, Superintendent Inland Revenue, Inland Revenue Audit

Officer and an officer of Inland Revenue, respectively.]
704
[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.
705
[(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.]
706
[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.

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.]
707
[72D. Reward to whistleblowers.-- (1) The Board may sanction
reward to whistleblowers in cases of concealment or evasion of tax, tax
704
Section 72A inserted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance Amendment) Ordinance, 2010,
705
New sub-section (1A) added through Finance Act, 2019.
706
Section 72C substituted by Finance Act, 2013.
707
Section 72D added by Finance Act, 2015.
132
Sales Tax Act, 1990
fraud, corruption or misconduct providing credible information leading to

such detection of evasion of tax fraud.

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.]
708
[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, excluding payment against a utility bill, shall be made by a crossed
cheque drawn on a bank or by crossed bank draft or crossed pay order or
any other crossed banking instrument showing transfer of the amount of the
sales tax invoice in favour of the supplier from the business bank account
of the buyer 709[:]
710
[Provided that online transfer of payment from the business
account of buyer to the business account of supplier as well as payments
708
Section 73 substituted by Finance Act, 2004. Earlier it was substituted by Finance Act, 2003, which was inserted by Tax Laws (Amendments)
Ordinance, 1999.
709
710
133
Sales Tax Act, 1990
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.]
711[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 712[Commissioner] in whose
jurisdiction he is registered 713[through Form STR-1 or change of particulars
in registration database.]]
711
New proviso inserted by Finance Act, 2021.
712
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.
713
134
Sales Tax Act, 1990
[“(4) A registered 715[person] shall not be entitled to deduct input

714
tax (credit adjustment or deduction of input tax) which is attributable to such

taxable supplies exceeding, in aggregate, one hundred million rupees in
financial year or ten million rupees in a tax period as are made to certain
person who is not a registered person under this Act:
Provided that the aforesaid shall not apply to supplies made to.-
(a) Federal / provincial / local Government
departments, authorities, etc. not engaged in making
of taxable supplies;
(b) Foreign Missions, diplomats and privileged persons;
716
[***]
(c) all other persons not engaged in supply of taxable
goods; 4[and]
717
(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.]
718[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 719[Board] may, 720[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.
714
New sub-section “(4)” inserted through Tax Laws (Amendment) Act, 2020.
715
Word substituted by Finance Act, 2020.
716
Word “and” omitted and the word “and” inserted by Finance Act, 2020.
717
New clause (d) inserted by Finance Act, 2020.
718
Section 74 added by the Finance Ordinance, 2002.
719
Substituted for the words “Central Board of Revenue” by Finance Act, 2007.
720
135
Sales Tax Act, 1990
Explanation.– For the purpose of this section, the expression “any act or
thing is to be done” includes any act or thing to be done by the registered
person or by the authorities specified in section 30 of this Act.]
Validation.– 722[(1) All notifications and orders issued and

721[74A.
notified in exercise of the powers conferred upon the Federal Government,

before the commencement of Finance Act, 723[2018] shall be deemed to
have been validly issued and notified in exercise of those powers.]
724
[(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.]
725
[76. Fee and service charges.– 3[(1)] The 726[“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.]
721
Section 74A inserted through Finance Act, 2017
722
Existing provision numbered as sub-section (1) by Finance Act, 2018.
723
Figure substituted by Finance Act, 2018.
724
725
New section 76 added through Finance Act, 2019.
726
Words “Federal Government” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
136
Sales Tax Act, 1990
727
[(2) The Board may authorize and prescribe the manner in which
fee and service charges collected under sub-section (1) shall be expended.]
728[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.]
***************
SCHEDULES
The
FIRST SCHEDULE
729
[***]
The
SECOND SCHEDULE
730
[***]
731
[The
THIRD SCHEDULE
See 732[clause (a)] of sub-section (2) of section 3]
Serial Description Heading Nos. of the First

No. Schedule to the Customs Act,
1969 (IV of 1969)
(1) (2) (3)
1 Fruit juices and vegetable 20.09
juices
733
2 Ice Cream. [2105.0000]
727
728
New section 77 added by Finance Act, 2022.
729
The first schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997.
730
The Second Schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997.
731
The Third Schedule Substituted by Finance Act, 1998, earlier it was inserted by Finance Act, 1996.
732
Substituted for the words, brackets and letter “clause (c)” by Finance Ordinance, 2002
733
Substituted for the figure “21.05” through Finance Act, 2017
137
Sales Tax Act, 1990

1969 (IV of 1969)
(1) (2) (3)
3 Aerated waters or 22.01 and 20.02
beverages.
4 Syrups and squashes. Respective headings
5 Cigarettes. 2402.2000
734
[6 Toilet soap 3401.1100 and 3401.2000]
735 736
[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.]
737
[12 ***
13 ***]
738
[14 Tea Respective sub-headings of
09.02
15 Powder drinks 21.06
16 Milky drinks 2106.9090]
739
[17 Toilet paper and tissue 4818.1000 and 4818.2000]
paper
740
[18. Spices sold in retail 09.04, 09.06, 09.08 and 09.10
packing bearing brand
names and trade marks
741
[19. ***
20. ***]
21. Shoe polish and shoe 3405.1010]
cream
***]
5
[22.
734
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.
735
Serial No.7 to 11 and entries relating thereto added by Finance Act, 2005
736
737
Serial No.12 to 13 and entries relating thereto omitted by Finance Act, 2008
738
739
Serial No.17 and entries relating thereto added by Finance Act, 2005
740
741
Serial No.19 to 20 and entries relating thereto omitted by Finance Act, 2008
138
Sales Tax Act, 1990

1969 (IV of 1969)
(1) (2) (3)
742
[23. ***
24. ***
25. ***
26. ***
27. ***
28. ***
29. ***
30. ***
31. ***]
743
[32. ***]
33. Cement sold in retail Respective heading
packing
34. ***
35. ***]
744
[36. ***]]
745
[37. Mineral/bottled water Respective headings]
746[38.
Household electrical Respective headings
goods, including air
conditioners,
refrigerators, deep
freezers, televisions,
recorders and players,
electric bulbs, tube-lights,
electric fans, electric
irons, washing machines
and telephone sets.
39.
Household gas appliances, Respective headings
including cooking range,
742
Serial Nos. 23 to 31, 34 and 35 entries relating thereto omitted by Notification No. S.R.O. 895(I)/2013, dated 4 th October, 2013.
743
Serial No. 32 and entries relating thereto omitted by Finance Act, 2022.
744
Serial Nos. 22 and 36 and entries relating thereto omitted Notification No. S.R.O. 681(I)/2013, dated 26 th July, 2013.
745
New Serial number added through Finance Act, 2016
746
Serial numbers 38 up to 49 and entries relating thereto added through Finance Act, 2019.
139
Sales Tax Act, 1990

1969 (IV of 1969)
(1) (2) (3)
ovens, geysers and gas
heaters.
40.
Foam or spring mattresses Respective headings
and other foam products
for household use.
41.
Paints, distempers, Respective headings
enamels, pigments,
colours, varnishes, gums,
resins, dyes, glazes,
thinners, blacks, cellulose
lacquers and polishes sold
in retail packing
42.
Lubricating oils, brake Respective headings
fluids, transmission fluid,
and other vehicular fluids
sold in retail packing.
43.
Storage batteries Respective headings
excluding those sold to
automotive manufacturers
or assemblers
44.
Tyres and tubes excluding Respective headings
those sold to automotive
manufacturers or
assemblers
45.
Motorcycles Respective headings
46.
Auto rickshaws Respective headings
47.
Biscuits in retail packing Respective Headings
with brand name
48.
Tiles Respective Headings
49.
Auto-parts, in retail Respective Headings]
packing, excluding those
sold to automotive
manufacturers or
assemblers
140
Sales Tax Act, 1990

1969 (IV of 1969)
(1) (2) (3)
747[50.
[***] omitted with effect Respective heading]
from the 1st day of
December, 2021
The
FOURTH SCHEDULE
748
[***]
749
[The
FIFTH SCHEDULE
[See section 4]
Serial Description
No.
(1) (2)
750
[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.]
751
[3. ***]omitted
752
[4. ***]]
747
Serial number 50 omitted by Finance (Supplementary) Act, 2022 w.e.f 1st day of December, 2021.
748
Fourth Schedule omitted by Finance Act, 1998.
749
Fifth Schedule added by Finance Act, 1996.
750
S. Nos. 1 and 6 and entries relating thereto omitted by Finance Act, 2021.
751
Serial number 3 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022.
752
Serial No. 4 and entry relating thereto omitted by Finance Act, 2012
141
Sales Tax Act, 1990
Serial Description
No.
(1) (2)
753
[5. Supplies of raw materials 754[, components and goods for
further] manufacture of goods in the Export Processing
Zones.]
754
[6. *****]
755
[6A. ***]omitted
756
[7. Supplies made to exporters under the Duty and Tax
Remission Rules, 2001 subject to the observance of
procedures, restrictions and conditions prescribed therein.]
757
[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 758[Board] may impose. ]
759
[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
760
[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
761
[prescribed by the Board]:--
753
Serial No. 5 added by the Finance Act, 1997.
754
Substituted for the words “and components for” by the Sales Tax (Amendment) Ordinance, 1999
755
Serial number(s) 6A and 9 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022.
756
Serial No. 7 added by Finance Ordinance, 2001
757
Serial No. 8 and entries relating thereto inserted by Finance Act, 2004
758
Substituted f Revenue” by Finance Act, 2007
759
New serial No. 8A added by the Finance Act, 2023
760
S. Nos. 10 and 11 and entries relating thereto omitted by Finance Act, 2021.
761
Substituted for the word “specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007” through Finance Act, 2019.
142
Sales Tax Act, 1990
Serial Description
No.
(1) (2)
762
[(i) to (ix) [......]]
763
[(x) ...
(xi) ...
(xii) ...
(xiii) ...
(xiv) ...
(xv) ...
(xi) ...]
764
(xvii) [Preparations suitable for infants, put up for
retail sale 765[not exceeding rupees 766[six]
hundred per two hundred grams] (PCT Heading
1901.1000)
767
(xviii) [.....]
(xix) 768[***] omitted.

(xx) 769[Colors in sets (PCT heading 3213.1000).
(xxi) Writing, drawing and marking inks (PCT
heading. 3215.9010 and 3215.9090)
(xxii) Erasers (PCT heading 4016.9210 and
4016.9290)
762
Serial numbers (i) to (ix) omitted through Finance Act, 2016.
763
Clauses (x) to (xvi) omitted by Finance Act, 2015
764
Expression substituted through Finance Act, 2017
765
Words added by Finance (Supplementary) Act, 2022.
766
For the word “five” the word “six” substituted by Finance Act, 2023
767
Serial number (xviii) omitted through Finance Act, 2016.
768
Clause (xix) omitted by Finance (Supplementary) Act, 2022.
769
New clauses (xx) to (xxvii) inserted by Finance Act, 2018.
143
Sales Tax Act, 1990
Serial Description
No.
(1) (2)
(xxiii) Exercise books (PCT heading 4820.2000)
(xxiv) Pencil sharpeners (PCT heading 8214.1000)
(xxv) 770[other drawing, marking out or mathematical
calculating instruments (geometry box) (PCT
heading 9017.2000)]
(xxvi) Pens, ball pens, markers and porous tipped pens
(PCT heading 96.08)
(xxvii) Pencils including color pencils (PCT heading
96.09)”.]
771
[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;
770 Clause (xxv) substituted by Finance Act, 2023

771
New serial numbers 13 and 14 inserted by Finance Act, 2020 shall have effect from the 1st June, 2020.
144
Sales Tax Act, 1990
Serial Description
No.
(1) (2)
(b) proper bill of export is filed showing registration
number;
(c) the purchaser of the machinery is an established
manufacturer located in the Gwadar Free Zone and
holds a certificate from the Gwadar Port Authority to
that effect;
(d) the purchaser submits an indemnity bond in proper
form to the satisfaction of the concerned
Commissioner Inland Revenue that the machinery
shall, without prior permission from the said
Commissioner, not be sold, transferred or otherwise
moved out of the Gwadar Free Zone before a period
of five years from the date of entry into the Zone;
(e) if the machinery is brought to tariff area of Pakistan
outside Gwadar Free Zone, sales tax shall be charged
on the value assessed on the Goods Declaration for
import; and
(f) breach of any of the conditions specified herein shall
attract legal action under the relevant provisions of the
Act, besides recovery of the amount of sales tax along
with default surcharge and penalties involved.]
772
[15. ***]omitted
16. Milk (PCT heading 04.01).
773
[17. Fat filled milk (PCT heading 1901.9090)]
[18. ***]omitted
774
[19. ***]
20. Petroleum Crude Oil (PCT heading 2709.0000)].
775
[21. Local supplies of 776[commodities,] raw materials,
components, parts and plant and machinery to registered
exporters authorized under Export Facilitation Scheme,
772
Serial numbers 15 and 18 omitted by Finance (Supplementary) Act, 2022.
773
Serial numbers 17 substituted by Finance Act, 2022.
774
Serial number 19 omitted by Finance Act, 2022.
775
New serial number 21 added by Finance Act, 2022.
776
Expression added by Finance Act, 2023
145
Sales Tax Act, 1990
2021 notified by the Board with such conditions,

limitations and restrictions as specified therein.]
146
Sales Tax Act, 1990
777
[The
SIXTH SCHEDULE
[See section 13(1)]
Table-1
(Imports or Supplies)
Serial Description Heading Nos. of the

No First Schedule to the
Customs Act, 1969 (IV
of 1969)
(1) (2) (3)
778
[1. ***] omitted
[2. ***] omitted

[3. ***] omitted
779
[4. ***
5. ***
6. ***
7. ***
8. ***
9. ***
10. ***]
[11. ***] omitted
[12. ***] omitted
13. Edible vegetables 780[imported 0701.1000, 784[***],
from Afghanistan] including 0702.0000, 785[***],
roots and tubers, 781[except 0703.2000, 0703.9000,
777
Sixth Schedule substituted by Finance Act, 2005. Earlier it was substituted by Finance Act, 1998. Originally it was inserted by Finance Act, 1996.
778
Serial number(s) 1,2,3,11 and 12 omitted by Finance (Supplementary) Act, 2022.
779
S. Nos. 4 to10 and entries relating thereto omitted by Finance Act, 2006
780
Words inserted by Finance (Supplementary) Act, 2022.
781
The words inserted by the Finance Act, 2009.
784
The figure and comma “0701.9000,” omitted by the Finance Act, 2009
785
The figure and comma “0703.1000,” omitted by the Finance Act,2009
147
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
ware potato and onions], 0704.1000, 0704.2000,
whether fresh, frozen or 0704.9000, 0705.1100,
otherwise preserved (e.g. in 0705.1900, 0705.2100,
cold storage) but excluding 0705.2900, 0706.1000,
those bottled 782[or] canned 0706.9000, 0707.0000,
783
[***]. 0708.1000, 0708.2000,
0708.9000, 0709.1000,
0709.2000, 0709.3000,
0709.4000, 0709.5100,
786
[***], 0709.6000,
0709.7000, 0709.9000,
0710.1000, 0710.2100,
0710.2200, 0710.2900,
0710.3000, 0710.4000,
0710.8000, 0710.9000,
0712.2000, 0712.3100,
0712.3200, 0712.3300,
0712.3900 and
0712.9000
14. Pulses. 0713.1000,
787
[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
782
Substituted for the comma by the Finance Act, 2008
783
The words “or package” omitted by the Finance Act, 2008.
786
Expression omitted by Finance Act, 2022.
787
Substituted for the figure and comma “0713.2000” by the Finance Act, 2009
148
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
788
[15. Fruit imported from 0804.1010, 0804.1020,
Afghanistan excluding apples 0804.2000, 0804.3000,
PCT 0808.1000 0804.4000, 0804.5010,
0804.5020, 0804.5030,
0805.1000, 0805.2910,
0805.2100, 0805.2200,
0805.2990, 0805.4000,
0805.5000, 0805.9000,
0806.1000, 0806.2000,
0807.1100, 0807.1900,
0807.2000, 0808.3000,
0808.4000, 0809.1000,
0809.2000, 0809.3000,
0809.4000, 0810.1000,
0810.2000, 0810.4000,
0810.5000, 0810.6000,
0810.9010, 0810.9090,
0811.1000, 0811.2000,
0811.9000, 0813.1000,
0813.2000, 0813.3000,
0813.4010, 0813.4020
and 0813.4090]
790
16. Red chillies excluding those [0904.2110] and
sold 789[under] brand names and 791
[0904.2210]
trademarks.
793
17. Ginger excluding those sold [09.10]
792
[under] brand names and
trademarks.
788
Serial number 15 substituted by Finance (Supplementary) Act, 2022.
789
Word substituted by Finance Act, 2023
790
Substituted for PCT heading “0904.2010” by the Finance Act, 2012
791
Substituted for PCT heading “0904.2020” by the Finance Act, 2012
792
793
Substituted for the figure “0910.1000” through Finance Act, 2017
149
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
18. Turmeric excluding those sold 0910.3000
794
[under] brand names and
trademarks.
795
[19. Rice, wheat, wheat and meslin Respective heading]
flour
796
[20. ***]
797
[21. ***] omitted
798
[22. ***]
[23. ***] omitted
773
[24. ***]
799
[25. ***]
795
[26. ***]
795
[27. ***]
800
[28. ***]
795
[29. ***]
801
[29A. ***
9B. ***]
795
[29C. ***]
802
[30. ***]
794
795
796
Serial number 20 omitted by Finance (Supplementary) Act, 2022.
797
Serial number(s) 21and 23 omitted by Finance (Supplementary) Act, 2022.
798
Serial numbers 22,24,26, 27, 29 and 29C omitted by Finance Act, 2021.
799
S. No. 25 and the entries relating thereto omitted by the Finance Act, 2013
800
Serial No. 28 and entries relating thereto omitted by Finance Act, 2015
801
S. Nos. 29A and 29B omitted by the Finance Act, 2011
802
S. No. 30 omitted by the Finance Act, 2011
150
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
803
31. Holy Quran, complete or in [4901.9910,
parts, with or without 8523.2100, 8523.2910,
translation; Quranic Verses 8523.2990,
804
recorded on any analogue or [8523.4910],
805
digital media; other Holy [8523.4920],
806
books. [8523.4190]
[...], [...], 8523.4190,
8523.5910, 8523.5990,
8523.8010,
8523.8020 and
8523.8090]
807
[32. Newsprint and books but Respective headings]
excluding brochures, leaflets
and directories
808
33. Currency notes, bank notes, [49.07]
shares, stocks and bonds.
809
[34. ***
35. ***]
810
[36. ***]
811
[37. ***]
812
38. Monetary gold. [7108.1390] 813[and
7108.2090]
814
[39. ***]
815
[40. ***]
816
[41. ***
803
Substituted for the words and figures “4901.9910 and respective headings of 85.24” by the Finance Act, 2007
804
Substituted for PCT heading “8523.4010” by Finance Act, 2012
805
806
807
Serial number 32 substituted by Finance Act, 2022.
808
Substituted for the figure “4907.0000” by Finance Act, 2017
809
S. Nos. 34 & 35 omitted by the Finance Act, 2011
810
Serial number 36 omitted through Finance Act, 2019.
811
812
813
The word and figures added by the Finance Act, 2007
814
S. No. 39 and entries relating thereto omitted by Finance Act, 2015
815
816
S. Nos. 41 to 44 omitted by the Finance Act, 2011
151
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
42. ***
43. ***
44. ***]
45. Dextrose and saline infusion 9018.3910, 9018.3920,
giving sets 817[***] along with 9021.3100,
empty non-toxic bags for 818[9021.3900] and
infusion solution, Dextrose and 819[Respective headings]
saline infusion giving sets,
Artificial parts of the body,
Intra-Ocular lenses and Glucose
testing equipment.
820
[46. ***]
47. Import of articles of household 99.05
and personal effects including
vehicles and also the goods for
donation to projects established
in Pakistan imported by any of
the rulers of Gulf Sheikhdoms
who is in possession of
residential accommodation in
Pakistan and goods including
vehicles by the United Arab
Emirates dignitaries as are
listed in column (2) against
heading No. 99.05 in column
(1) of the First Schedule to the
Customs Act, 1969 (IV of
1969) for their personal use and
for donation to welfare projects
established in Pakistan subject
817
The word “imported” omitted by the Finance Act, 2007
818
Substituted for the figures “9201.3900” by the Finance Act, 2007
819 Words substituted by Finance Act, 2022.
820
152
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
to the similar conditions as are
envisaged for the purposes of
applying zero-rate of customs
duty on such goods under the
said Act.
48. Goods imported or supplied 99.03
under grants-in-aid for which a
specific consent has been
obtained from the 821[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.
822
[49. ***] omitted
[50. ***] omitted
[51. ***] omitted
[52. ***] omitted
[52A. ***] omitted
[53. ***] omitted
[54. ***] omitted
[55. ***] omitted
823
[56. Omitted.]
[57. ***] omitted
821
Substituted for the words “Central Board of Revenue” by Finance Act, 2007
822
Serial number(s) 49 to 57 and 58 omitted by Finance (Supplementary) Act, 2022.
823
Serial No. 56 and entries relating thereto omitted by Finance Act, 2015
153
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
[58. ***] omitted
59. Artificial kidneys, eye cornea, 99.24 826[, 99.25

hemodialysis machines, 827[,99.37] and 99.38]
hemodialyzers, A.V. fistula
needles, hemodialysis fluids
824
[,] 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, 825[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
824
Substituted for the word “and” by the Finance Act, 2008
825
The comma and words inserted by the Finance Act 2014
826
Substituted for the word and figures “and 99.25” by the Finance Act, 2008
827
The comma and figure inserted by the Finance Act 2014
154
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
1969).
828
[60. ***] omitted
[61. ***] omitted
829
[62. ***]
[63. ***] omitted
830
[64. ***
65. ***
66. ***
67. ***
68. ***
69. ***
70. ***.]
831
[71. ***] omitted
[72. ***] omitted
832
[73. ***]
73A. ***]
74. ***]
75. ***]
76. ***]
77. ***]
78. ***]
79. ***]
80. ***]
[81. ***] omitted
82. ***]
828
Serial number(s) 60, 61 and 63 omitted by Finance (Supplementary) Act, 2022.
829
830
S. Nos. 64 to 70 omitted by the Finance Act, 2011
831
Serial number(s) 71, 72, 81, 84 and 92 omitted by Finance (Supplementary) Act, 2022.
832
Serial numbers 73 to 80, 82, 83 and 85 omitted by Finance Act, 2021.
155
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
83. ***]
[84. ***] omitted
833
[85. ***]
86. Colors in sets(Poster colors) 3213.1000
87. Writing, drawing and making 3215.9010and 3215.9090
inks
88. Erasers 4016.9210 and
4016.9290
89. Exercise books 4820.2000
90. Pencil sharpeners 8214.1000
91. ***]
[92. ***] omitted
93 ***]
94. Wheelchairs 8713.1000 and
8713.9000
834
[95. ***]
96. Other drawing, marking out or 9017.2000
mathematical calculating
instruments (geometry box)
835
97. [Pens, ball pens, markers and 96.08
porous tipped pens]
98. Pencils including color pencils 96.09
836
[99. ***] omitted
100. Construction materials to Respective headings
837
[Gwadar] Export processing
Zone’s investors and to Export
Processing Zone 3[Gwadar] for
development of Zone’s
infrastructure
833
Serial numbers 85, 91 and 93 omittted by Finance Act, 2021.
834
Serial number 95 and entries relating thereto is omitted through Finance Act, 2019.
835
The expression substituted by Finance Act, 2017
836
837
Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017
156
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
838
[100 Materials and equipment Respective Headings
839
A [(plant, machinery,
equipment, appliances and
accessories)] for construction
and operation of 3[Gwadar] Port
and development of Free Zone
for 3[Gwadar] Port as imported
by or supplied to China
Overseas Ports Holding
Company Limited (COPHCL)
and its operating companies
namely (i) China Overseas
Ports Holding Company
Pakistan (Private) Limited (ii)
Gwadar International Terminal
Limited, (iii) Gwadar Marin
Services Limited and (iv)
Gwadar Free Zone Company
Limited, their contractors and
sub-contractors; and Ship
Bunker Oils bought and sold to
the ships calling on/visiting
3
[Gwadar] Port, 840[by the
aforesaid operating companies]
having Concession Agreement
with the Gwadar Port
Authority, for a period of forty
year, subject to the following
conditions and procedure,
namely,–
838
New serial numbers 100A & 100B added through Finance Act, 2016.
839
840 The expression inserted by Finance Act, 2020 shall have effect from the 1 st June, 2020.
157
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
(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 841[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
841
158
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
1969). In already
computerized
Collectorate or Customs
station, where the
computerized system is
not operational, the
Project Director or any
other person authorized
by the Collector in this
behalf shall enter the
requisite information in
the Customs
Computerized System on
daily basis, whereas entry
of the data obtained from
the customs stations
which have not yet been
computerized shall be
made on weekly basis,
provided that this
condition shall not apply
to ship bunker oils; and
(iii) The goods so
imported 842[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
842
The expression inserted and words substituted by Finance Act, 2020 shall have effect from the 1 st June,
2020.
159
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
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;
(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
160
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
843
[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
843
161
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
exempt supplies and
shall be signed by
the authorized
person of the
registered person.
All three copies of
the said signed
monthly statement
shall be got verified
by the registered
person from the
person authorized to
receive the supplies
in the office of
operating company,
confirming that
supplies mentioned
in the monthly
statement have been
duly received;
(v) after verification
from the operating
company, original
copy of the monthly
statement will be
retained by the
registered person,
duplicate by the
operating company
and the triplicate
provided by the
registered person to
the Collector of
Sales Tax having
162
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
jurisdiction, by
twentieth day of the
month following the
month in which
exempt supplies to
the operating
companies were
made; and
(vi) the registered person
making the exempt
supplies shall keep
the aforesaid record
for presentation to
the sales tax
department as and
when required to do
so.
1
[100B] Supplies made by the Respective headings
businesses to be established in
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.
844
[100C Vehicles imported by China Respective headings
. Overseas Ports Holding
Company Limited (COPHCL)
and its operating companies
844
New S.No. 100C and entries relating thereto inserted through Finance Act, 2017
163
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
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)]
845
[100 Machinery, equipment, Respective headings
D materials 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 Act, 1969
(Act IV of 1969) and rules
made thereunder shall, mutatis
mutandis, apply provided that if
any of such goods is taken out
845
New serial number 100D inserted by Finance Act, 2020 shall have effect from the 1st June, 2020.
164
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
of the Zone for purpose other
than the export, the tax on the
same shall be paid by the
importer.]
846
[101. ***]
847
[102. ***] omitted
848
[103. ***]
[104. ***] omitted
[105. ***] omitted
849
[106. ***]
107. Import and supply of iodized 2501.0010
salt bearing brand names and
trademarks whether or not sold
in retail packing.
[108. ***]
850
[109. ***] omitted
[110. ***] omitted
111. 851
[…….] omitted […….]
112. Following cardiology/cardiac Respective headings
surgery, neurovascular,
electrophysiology,
endosurgery, endoscopy,
oncology, urology,
gynaecology, disposables and
other equipment:--
846
847
848
849
Serial numbers 106 and 108 omitted by Finance Act, 2021.
850
Serial number(s) 109 and 110 omitted by Finance (Supplementary) Act, 2022.
851
Serial No. 111, expression “White crystalline sugar” omitted through Finance Act, 2016.
165
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
A. ANGIOPLASTY
PRODUCTS
1. Coronary Artery Stents

2. Drugs Eluting Coronary
Artery Stents
3. Coronary Artery
Dilatations Catheters
(Balloons)
4. PTCA Guide Wire
5. PTCA Guiding Catheters
6. Inflation Devices/Priority
Packs
7. 852[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
852
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.
166
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
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
3. Guide Wires
4. Contrast Lines
5. Pressure Lines
6. Mannifolds
853
7. [Wrist Bands for Radial
Vessel Closure]
C. CONTRAST MEDIA
FOR
ANGIOGRAPHY/ANG
IOPLASTY
853
New sub-serial No. 7 under entry B of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018.
167
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
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.
and accessories)
F. HEART FAILURE
DEVICES
and accessories)
G. IMPLANTABLE
CARDIOVERTES
and accessories)
168
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
H. CARDIAC ELECTRO-
PHYSIOLOGY
PRODUCTS
1. Electrophysiology
catheters
2. Electrophysiology cables
3. Electrophysiology
connectors
4. 854[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
854
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.
169
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
I. Cold kits (cardiolotic
MAA, DTPA etc.)
J. CARDIAC SURGERY
PRODUCTS
1. Oxygenators
2. Cannulas
3. Prosthetic Heart Valves
4. Luminal shunts for heart
surgery
5. Artificial limbs and
appliances
855
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
855
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.
170
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
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. 856[Left Ventricular Assist
Device / System (LVAD)
and Catheters
6. MitraClipTranscatheter
Mitral Valve System
7. MitraClip Guide Catheter,
Clip and Delivery System
8. Patent Foramen Ovale
(PFO) Closure Device
9. Left Atrial Appendage
(LAA) Occluder
10. Transcatheter Aortic /
Heart Valve System
(TAVI/TAVR)
11. Cerebral Retrievable
Stents
12. Aortic Stent Grafts
856
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.
171
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
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 devices adapters
857
[“Drug Eluting Peripheral
Stents”].
857
Words “Drug Eluting Peripheral Stents” under entry L of S.No. 112 added by Finance Supplementary (Amendment) Act, 2018.
172
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
858
[113. ***] omitted
[114. ***[ omitted
859
[115. ***]
[116. ***] omitted
[117. ***] omitted
860
118. [omitted] [......]
861
119. [.......] omitted [......]
120. Diagnostic kits or equipment, 862[Respective headings]
namely:-
HIV Kits
4C Es Trionyx
5C Cell control Lnormal
Bovine precision multi
sera
Pregnancy test
DNA SSP DRB Generic
IC
Reticulocyte count
(control) retic C Control
Kit for vitamin B12
estimation
Ferritin kit
HEV (Hepatitis E virus)
ID-DA Cell
Urine Analysis Strips
Albumin beg
Cratinin sysi
Ring
858
Serial number(s) 113, 114, 116, and 117 omitted by Finance (Supplementary) Act, 2022.
859
860
S.No. 118 omitted by Finance Supplementary (Second Amendment) Act, 2019
861
Serial No. 119, expression “Tubular day..” omitted through Finance Act, 2016.
862
173
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
Detektiion cups
ISE Standard
Alkaline phosphatase
(Alb)
Bilirubin kit
HDL Cholesterol
Ck creatinin kinase (mb)
Ck nac
Glulcose kit
Ammonia Modular
Lac
Ldh kit (lactate
dehydrogenase kit)
Urea uv kit
Ua plus
Tina quant
Crp control
Aslo tin
Proteins
Lipids
HDL/LDL cholesterol
Protein kit
U
Control Sera
Pac
Control
HCV
UIBC (Unsaturated iron
binding capacity)
U/CSF
Inorganic Phosphorus kit
Kit amplicon kit (for
PCR)
Ige
174
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
Lc hsv
Oligo
NA/K/CL
Hcy
Standard [or calibrated]
Hla B27
Liss Coombs
Typhoid kit
HCV amp
Urine test strips
Strips for sugar test
Blood glucose test strips
Kits for automatic cell
separator for collection of
platelets
Elisa or Eclia kit
PCR kits
Immunoblast (western
blot test).
I.C.T.
(Immunochromatographi
c kit)
CBC Reagent (For
hematology analyzer)
Complete blood count
reagent
121. Blood Bag CPDA-1 with blood Respective headings
transfusion set pack in
aluminium foil with set.
863
[Explanation.– For removal
of doubt, it is clarified that the
863 Explanation added by Finance Act, 2023
175
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
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
864
[123. ***]
[124. ***]
[125. ***]
865
[126. ***] omitted
127. ***] omitted
866
[128. ***]
129. ***] omitted
867
[130. ***] omitted
[131. ***] omitted
[132. ***] omitted
133. Pesticides and their active 38.08
ingredients registered by the
Department of Plant Protection
under the Agricultural
Pesticides Ordinance, 1971(II
of 1971), stabilizers,
emulsifiers and solvents,
namely:−
Xylol (xylenes) 2707.3000

- Beta Pinene / Agrotin 527 / 2902.1990
Terpenic derivative
864
Serial numbers 123 to 125 omitted by Finance Act, 2021.
865
866
867
Serial number(s) 130 to 132 omitted by Finance (Supplementary) Act, 2022.
176
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
Toluene 2902.3000
Mixed xylene isomers 2902.4400
Naphthalene 2902.9010
Solvesso-100, 150, 200 2902.9090
868 3
[..] [..]
869 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
Dioctyl orthophthalates 2917.3200
870 1
[..] [..]
871 2
[..] [..]
868
The words “ingredients for pesticides” and the figure “2903.3040” omitted by Finance Act, 2017
869
The words “Cadusafos Technical Material” and figure “2903.6900” omitted by Finance Act, 2017
870
871
177
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
872 3
[..] [..]
Endosulfan Technical Material 2920.9020
Diethylamine and its salts 2921.1200
Other Ingredients for pesticides 2921.4390
873 1
[..] [..]
Dimethyl Formamide (DMF) 2924.1990
874 2
[..] [..]
Alpha cyano, 3-phenoxybenzyl 2926.9010
(-) cis, trans 3-(2,2-diclord
vinyl) 2,2 dimethyl
cyclopropane carboxylate
(S) Alpha cyano, 3- 2926.9020
phenoxybenzyl (S)-2-(4, chloro
phenyl)-3 mehtyl butyrate
Cyano, 3-phenony benzyl 2926.9030
2,2,3,3 tetra methyl
cyclopropane carboxalate
- Cypermethrin, Alpha 2926.9050
Cypermethrin, Beta-
Cypermethrin, Zeta-
Cypermethrin, Lambda
Cylalothrin, Deltamethrin,
Fenpropathrin, Esfenvalerate,
Bifenthrin
872
The words “other ingredients for pesticides” and the figure “2919.0090” omitted by Finance Act, 2017
873
The words “Tiethanolamine and its salts” and the figure “2922.1300” omitted by Finance Act, 2017
874
178
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
Technical Material-
Acetamiprid, Imidacloprid
Technical Material-
Monomehypo, Chlorothalonil
Technical Material-
Bromoxynil Technical Material
Other nitrite compounds- 2926.9090
Cyfluthrin, Beta Cyfluthrin
Technical Material
2-N, N-Dimethyl amino-I 2930.2010
sodium thiosulphate, 3-
thiosulfourropane
2- N,N-dimethyamino 1,3 2930.9010
disodium thiosulphate propane
875
Other orgonosulpher [Respective headings]
compounds
- Ethion, Methamidophos
Technical Material
- Dimethysulfoxid
876
Ingredients for pesticides [Respective headings]
877
Other Ingredients for pesticides [Respective headings]
878
2,3 Dihydro 2-2 dimethyl-7 2932.9910
benzo furanyl methyl-
carbamate
- Carbosulfan Technical
Material
875
For expression, words “respective headings” substituted by Finance Act, 2022.
876
877
878
179
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
Fipronil 2933.1900
879
- Chlorpyrifos, Triazophos, 2933.5950
Diazinon Technical Material
Pyrimethanine 2933.6910
- Atrazine Technical Material 2933.6990
Isatin (lactam of istic acid) 2933.7910
1-Vinyl-2-pyrrol-idone 2933.7920
- Triazophos Technical 2933.9910
Material
-Methyl benzimidazol – 2 – 2938.9010
ylcarbamate.
-Dicopper chloride trihydroxide
880
Ingredients for pesticides [2939.8010]
881
- Abamectin, Emamectin [Respective headings]
Technical Material
882
Sulphonic acid (Soft) [Respective headings]
883
Other surface active agents [Respective headings]
884
Catonic [Respective headings]
885
Non ionic surface active agents [Respective headings]
879
880
881
882
883
884
885
180
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
886
Other organic surface active [Respective headings]
agents 3402.9000
887
Chemical preparations [3824.9999]
Solvent C-9 2707.5000
888
[White spirit 2710.1240
Solvent oil 2710.1250]
889
[134. ***] omitted
[135. ***] omitted
[136. ***] omitted
890
[137. Paper weighing 60 g/m2, art 4802.5510,
paper, printing paper and art 4810.1990,
card for printing of Holy 4810.1910, 4802.6990
Quran imported by Federal and 4810.2900.]
or Provincial Governments
and Nashiran-e-Quran as
per quota determined by
IOCO
891
[138. ***] omitted
[139. ***] omitted
[140. ***] omitted
[141. ***] omitted
[142. ***] omitted
143. (i) Hearing aids (all types and 9937
kinds) (ii) Hearing assessment
equipment;
(a) Audiometers
(b) Tympanometer
(c) ABR
886
887
888
New entries inserted by Finance Act, 2021.
889
890
S.No. 137 and entries relating thereto substituted by Finance Act, 2022.
891
181
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
(d) Oto Acoustic Omission
144. Liquefied Natural Gas imported 2711.1100
by fertilizer manufacturers for
use as feed stock
145. Plant, machinery, equipment Respective heading
including dumpers and special
purpose motor vehicles, if not
manufactured locally, imported
by M/s China State
Construction Engineering
Corporation Limited (M/s
CSCECL) for the construction
of Karachi – Peshawar
Motorway (Sukkur – Multan
Section) and M/s China
Communication Construction
Company (M/s CCCC) for the
construction of Karakorum
Highway (KKH) Phase-II -
(Thakot - Havellian Section)
subject to the following
conditions:
(i) that the exemption
under this serial number
shall only be available
to contractors named
above;
(ii) that the equipment and
construction machinery
imported under this
serial number shall only
be used for the
construction of the
182
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
respective allocated
projects;
(iii) that the importer shall
furnish an indemnity
bond, in the prescribed
manner and format as
set out in Annex-A, at
the time of import to the
extent of sales tax
exempted under this
serial number on
consignment to
consignment basis;
(iv) that the Ministry of
Communications shall
certify in the prescribed
manner and format as
set out in Annex-B that
the imported equipment
and construction
machinery are bona fide
requirement for
construction of Sukkur
– Multan Section (392.0
km) of Karachi –
Peshawar Motorway or
for the construction of
Karakorum
Highway(KKH) Phase-
II - Thakot to Havellian
Section (118.057 km) as
the case may be;
(v) for the clearance of
imported goods through
183
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
Pakistan Customs
Computerized System
the authorized officer of
the Ministry shall
furnish all relevant
information, as set out
in Annex-B, online
against a specific user
ID and password
obtained under section
155D of the Customs
Act, 1969 (IV of 1969).
In Collectorates or
Customs stations where
the Pakistan Customs
Computerized System is
not operational, the
Director Reforms and
Automation or any other
person authorized by the
Collector in this behalf
shall enter the requisite
information in the
Pakistan Customs
Computerized System
on daily basis, whereas
entry of the data
obtained from the
customs stations which
have not yet been
computerized shall be
made on weekly basis;
(vi) that the equipment and
construction machinery,
184
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
imported under this
serial number, shall not
be re-exported, sold or
otherwise disposed of
without prior approval
of the FBR. In case
goods are sold or
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
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
185
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
surrendered at any time
to the Collector of
Customs having
jurisdiction, without
payment of any sales tax
, for further disposal as
may be prescribed by
the FBR;
(ix) the indemnity bond
submitted in terms of
para (iii) above by the
importer shall be
discharged on the
fulfillment of conditions
stipulated at para (vi) or
(vii) or (viii) above, as
the case may be; and
(x) that violation of any of
the above mentioned
conditions shall render
the goods liable to
payment of statutory
rate of sales tax leviable
on the date of clearance
of goods in addition to
any other penal action
under relevant
provisions of the law.
892
[146. ***] omitted
147. Goods supplied to German Respective heading
Development Agency
892
186
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
(Deutsche Gesellschaft für
Internationale
Zusammenarbeit) GIZ
148. Imported construction materials Respective heading
and goods imported by M/s
China State Construction
Engineering Corporation
Limited (M/s CSCECL),
whether or not locally
manufactured, for construction
of Karachi-Peshawar
Motorway (Sukkur-Multan
Section) subject to fulfilment of
same conditions, limitations
and restrictions as are specified
under S. No. 145 of this table,
provided that total incidence of
exemptions of all duties and
taxes in respect of construction
materials and goods imported
for the project shall not exceed
ten thousand eight hundred
ninety-eight million rupees
including the benefit of
exemption from duties and
taxes availed before 30th June,
2018 under the provisions of the
Sales Tax Act, 1990, the
Customs Act, 1969, the Federal
Excise Act, 2005 and the
Income Tax Ordinance, 2001
and Notifications issued
thereunder;
187
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
893
[149. ***] omitted
[150 ***] omitted
894
[151. (a) Supplies; and Respective heading
(b) imports of plant, machinery,
equipment for installation in
tribal areas and of industrial
inputs by the industries located
in the tribal areas, as defined in
the Constitution of Islamic
Republic of Pakistan,−
as made till 895[30th June,
2024], to which the provisions
of the Act or the notifications
issued thereunder, would have
not applied had Article 247 of
the Constitution not been
omitted under the Constitution
(Twenty-fifth Amendment)
Act, 2018 (XXXVII of 2018):
Provided that, in case of
imports, the same shall be
allowed clearance by the
Customs authorities on
presentation of a post-dated
cheque for the amount of sales
tax payable under the Sales Tax
Act, 1990, and the same shall be
returned to the importer after
presentation of a consumption
or installation certificate, as the
893
Serial number 149 and 150 omitted by Finance (Supplementary) Act, 2022.
894
New serial numbers 151, 152 and 153 and entries relating thereto in column (2) and (3) inserted through Finance Act, 2019.
895 Expression substituted by Finance Act, 2023
188
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
case may be, in respect of
goods imported as issued by the
Commissioner Inland Revenue
having jurisdiction:
Provided further that if plant,
machinery and equipment, on
which exemption is availed
under this serial number, is
transferred or supplied outside
the tribal areas, the tax
exempted shall be paid at
applicable rate on residual
value
152. Supplies of electricity, as made 2716.0000
from the day of assent to the
Constitution (Twenty-fifth
Amendment) Act, 2018, till
896
[30th June, 2024], 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
897[153. ***]
898
[154. Dietetic foods intended for Respective heading
consumption by children
suffering from inherent
896 Expression substituted by Finance Act, 2023

897
898
New serial numbers 154 to 156 inserted by Finance Act, 2020.
189
Sales Tax Act, 1990

of 1969)
(1) (2) (3)
metabolic disorder subject to
the conditions that the importer
shall acquire approval and
quota from Ministry of National
Health Services, Regulations
and Coordination.
899
[155.***] omitted
900
[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
901
[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
899
900
901
190
Sales Tax Act, 1990
(ii) Light commercial

vehicles (LCVs) with
150 kwh battery or
below
902
[158. ***] omitted
903
[159. ***] omitted
910
[160. ***] omitted
161. Import of plant, machinery, Respective headings
equipment and raw materials
for consumption of these items
within Special Technology
Zone by the Special
Technology Zone Authority,
zone developers and zone
enterprises
162. Import of raw materials, Respective headings]
components, parts and plant
and machinery by registered
persons authorized under
Export Facilitation Scheme,
2021 notified by the Board
with such conditions,
limitations and restrictions.
904
[163. Goods imported by various 99.01, 99.02, 99.03 and
agencies of the United 99.06
Nations, 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:
902
903
Serial numbers 159 & 160 omitted by Finance Act, 2023
904
New serial number(s) 163 to 174 added by Finance Act, 2022.
191
Sales Tax Act, 1990
Provided that such

goods are charged to zero-
rate of customs duty under
the Customs Act, 1969 (IV of
1969), and the conditions
laid therein.
Provided further that
exemption under this serial
shall be available with effect
from the 15th day of January,
2022.
164. Photovoltaic cells whether 8541.4200 and
or not assembled in 8541.4300
modules or made up into
panels
165. Goods imported by or 99.13 and 99.14,
donated to hospitals run by
the non-profit making
institutions subject to the
similar restrictions,
limitations, conditions and
procedures as are
envisaged for the purpose of
applying zero-rate of
customs duty on such goods
under the Customs Act,
1969, (IV of 1969).
166. Goods excluding electricity Respective headings
and natural gas supplied to
hospitals run by the
charitable hospitals of fifty
beds or more.
167. Goods temporarily imported 99.19, 99.20 and 99.21
into Pakistan, meant for
subsequent exportation
charged to zero-rate of
customs duty subject to the
similar restrictions,
192
Sales Tax Act, 1990
limitations, conditions and

procedures as are
envisaged for the purpose of
applying zero-rate of
customs duty on such goods
under the Customs Act,
1969 (IV of 1969).
168. Fertilizers 905[excluding Respective headings
DAP]
169. Oil cake and other solid 2306.1000
residues
170. Tractor 8701.9220 and
8701.9320
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.
905 Words added by Finance Act, 2023
193
Sales Tax Act, 1990
173. Goods produced or Respective headings

manufactured in and
exported from Pakistan
which are subsequently
imported in Pakistan within
one year of their
exportation, provided
conditions of section 22 of
the Customs Act, 1969 (IV of
1969), are complied with.
174. Machinery and equipment Respective headings.]
as listed at serial number 32
of the Table of Part-I of Fifth
Schedule to the Customs
Act, 1969 (IV of 1969),
subject to the conditions,
limitations and restrictions
specified thereunder.
194
Sales Tax Act, 1990
906
[Annex-I
[See serial No. 100A & 100B]
Header Information
NTN/FTN of Importer Approval No.
(1) (2)
Details of materials and equipments (to be filled in by the Goods imported (Collectorate of
authorized officer of the Ministry of Ports and Shipping) import)
Rate of sales tax

rate (applicable)
Date of CRN/
Customs duty
Collectorate
Description
Mach No.
Mach No.
imported
Quantity
Quantity
HS code
Specs
CRN/
UOM
(3) (4) (5) (6) (7) WHT
(8) (9) (10) (11) (12 (13) (14
) )
Header Information
(1) (2)
Details of materials and equipments (to be Goods imported (Collectorate of
filled in by the authorized officer of the import)
Ministry of Ports and Shipping)
Date of CRN/
duty
Rate of sales tax

rate (applicable)
Collectorate
Description
Mach No.
Mach No.
imported
Customs
Quantity
Quantity
HS code
Specs
CRN/
UOM
WHT
(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
NOTE 1.–
Before certifying, the authorized officer of the
Ministry of Ports and Shipping shall ensure that the
goods are genuine and bona fide requirement for
construction and operation of Gwadar Port and
development of Free Zone for Gwadar Port.
Signature________________________
Designation ________________________
NOTE 2.– In case of clearance through Pakistan Customs Computerized
System, the above information shall be furnished online against a specific
906
Annexure-I inserted through Finance Act, 2016.
195
Sales Tax Act, 1990
user I.D. and password obtained under section 155D of the Customs Act,
1969 (IV of 1969).
196
Sales Tax Act, 1990
907
[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)
907
New Annexures A, B, C & D inserted by Finance Act, 2018.
197
Sales Tax Act, 1990
of the said serial number 145 or serial number 148 of this table, as the case
may be.
The importers further agree and bind themselves that the amount covered
by this Bond shall be recovered as arrears of sales tax under section 202 of
the Customs Act, 1969. This Bond shall become void when the Collector of
Customs is satisfied that the importers have fulfilled all the conditions of
the said serial number 145 or serial number 148 of this table, as the case
may be.
Signed by importers on this ____________________ day of
_____________201_.
Managing Director
(Name and permanent address)
Collector of Customs (On behalf
of President)
Witness_____________________________________________________
(signature, name, designation and full address)
Witness_____________________________________________________
Note: The bond shall be written on appropriate non-judicial stamp paper and
shall be witnessed by a Government servant in BPS 17 or above, an Oath
Commissioner, a Notary Public or an officer of a Schedule Bank.
Annex-B
[See condition 145 (iv) and (v)]
NTN or FTN of Importer Approval No.
(I) (II)
Details of input goods (to be filled by the authorized officer of the
Regulatory Authority) to be imported
Description Quantity/UOM L/C No. IGM No. Remarks, if
and or bank Date & any.
specifications. contract Index No.
No. and
B/L.
(1) (2) (3) (4) (5)
CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY
AUTHORITY:
198
Sales Tax Act, 1990
It is hereby certified that the description, quantity and other details

mentioned above are true and correct. Goods imported are in
commensuration with the project requirement and are bona fide requirement
of the project. It is further certified that the above items shall not be used
for any other purpose except for the project.
Signature: ________________________
Name & Designation: ________________________
Official Stamp: ________________________
Date: ________________________
Note: -For the purposes of this serial number 145, the expression "not
manufactured locally" shall mean the goods which are not listed in the
locally manufactured items in the Customs General Order issued by the
Federal Board of Revenue from time to time.
Annex-C
[See condition 146(b)]
INDEMNITY BOND
(On appropriately stamp non-judicial paper attested by a Government

servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an
officer of a Scheduled Bank)
THIS DEED OF INDEMNITY is made on the _________ date of

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

number 146 and subject to the conditions given in the said serial number
146, has been pleased to direct that such equipment shall be exempt from
the whole of sales tax leviable thereon, in accordance with the said serial
number 146, if imported for Lahore Orange Line Metro Train Project.
199
Sales Tax Act, 1990
AND WHEREAS M/S.____________, the importers have imported the

equipment mentioned in the said serial number 146 for the above mentioned
project in accordance with the conditions given in the said serial number
146;
NOW, THEREFORE, in consideration of the release of the equipment

without recovery of leviable sales tax, the importers bind themselves to pay
on demand to the Government of Pakistan the sum of Rs. __________ being
the sales tax and charges leviable on the equipment, if the importers fail to
fulfill the condition (f) or (g) or (h) of the said serial number 146, as the case
may be.
The importers further agree and bind themselves that the amount covered
by this Indemnity Bond shall be recovered as arrears of sales tax under
section 202 of the Customs Act, 1969. This Bond shall stand revoked
automatically when the Collector of Customs is satisfied that the importers
have fulfilled all the conditions of the said serial number 146.
Signed by importers on this ______________ day of

_________________201_.
Managing Director or person next in hierarchy duly authorized by MD
(Name and permanent address)

Collector of Customs
(On behalf of President)
Witness(1)___________________________________________________
Witness(2)__________________________________________________
Annex-D
[See conditions 146 (c) and (e)]
200
Sales Tax Act, 1990
NTN or FTN of Importer Approval No.

Details of equipment (to be filled by the authorized officer of the
Regulatory Authority) to be imported
Description Quantity/UOM L/C No. IGM No. Remarks, if
and or bank Date & any.
specifications. contract Index No.
No. and
B/L.
(1) (2) (3) (4) (5)
CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY

AUTHORITY:
It is hereby certified that the description, quantity and other details

mentioned above are true and correct. Goods imported are in
commensuration with the project requirements and are bona fide
requirement of the Project under the Contract. It is further certified that the
above items shall not be used for any other purpose except for the Project.
Signature: ________________________
Name and Designation: ________________________
Official Stamp: ________________________
Date: ________________________”]
201
Sales Tax Act, 1990
Table-2
(Local Supplies only)
Serial No Description Heading Nos. of the

First Schedule to the
of 1969)
(1) (2) (3)
908
[1. ***] omitted
[2. ***] omitted
909 910
[3. [Supplies made by Respective headings.]
cottage industry.]
[4. ***] omitted
911
[5. ***]
6. Supply of fixed assets Respective headings.
against which input tax
adjustment is not available
under a notification issued
in terms of clause (b) of
sub-section (1) of section
8 of the Sales Tax Act,
1990.
912 913
7. [***], vermicillies, Respective heading]
914
[***], sheer mal, bun and
rusk excluding those sold in
bakeries, 915[***] and sweet
shops falling in the category
of Tier-1 retailers.
08. Foodstuff cooked or Respective headings.
prepared in-house and
served in messes run on the
basis of mutuality and
908
909
S. No. 3 substituted by the Finance Act, 2007
910
Substituted by the Finance Act, 2014
911
912
913
Expressions omitted by Finance Act, 2022.
914
915
202
Sales Tax Act, 1990
Serial No Description Heading Nos. of the

First Schedule to the
of 1969)
(1) (2) (3)
industrial canteens for
workers.
[9. ***] omitted
10. Agricultural produce of Respective headings.
Pakistan, not subjected to
any further process of
manufacture.
916
[11. ***]
917
[12. ***]
]
918 919
[ [13. ***
2
[14. ***]
920
[15. ***] omitted
[16. ***] omitted
921
[17. ***]
18. ***]
19. ***]
20. ***]
3
[21. Poultry feed, cattle feed, 2306.3000, 2306.4900
sunflower seed meal, rape and respective headings]
seed meal and canola seed
meal
922
[22. ***] omitted
[23. ***] omitted
[24. ***]
[25. ***]
916
S. No. 11 omitted by the Finance Act, 2022.
917
918
S. Nos. 13 to 16 added by the Finance Act, 2014
919
S. No. 13 & 14 omitted by the Finance Act, 2015
920
921
S. Nos. 17 to 20 and 24, 25 omitted by Finance Act, 2021.
922
203
Sales Tax Act, 1990
923
[26. Supply of locally produced Respective heading
silos till 30.06.2026
924
27. Wheat Bran [This 2302.3000
exemption 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 2009.1900, 2009.2100,
but excluding those bottled, 2009.2900, 2009.3100,
canned or packaged. 2009.3900, 2009.4100,
2009.4900, 2009.5000,
2009.6100, 2009.6900,
2009.7100, 2009.7900,
and 2009.9000
30. Milk and cream, concentrated 04.02
or containing added sugar or
other sweetening matter,
excluding that sold in retail
packing under a brand name
31. Flavored milk, excluding that 0402.9900
sold in retail packing under a
brand name
32. Yogurt, excluding that sold 926[Respective heading]
925
[***] under a brand name
[33. ***] omitted
34. Butter, excluding that sold 0405.1000
932
35. Desi ghee, excluding that sold 0405.9000
932
36. Cheese, excluding that sold 0406.1010
932
37. Processed cheese not grated or 0406.3000
powdered, excluding that sold
932
923
924 Expression added by Finance Act, 2023
925
Under serial number(s) 32 and 34 to 37 words omitted by Finance Act, 2023
926
204
Sales Tax Act, 1990
[38. ***] omitted927

39. Products of meat or meat offal 1602.3200, 1602.3900,
excluding sold 928[***] under 1602.5000, 1604.1100,
a brand name or trademark 1604.1200, 1604.1300,
1604.1400, 1604.1500,
1604.1600, 1604.1900,
1604.2010, 1604.2020
and 1604.2090]
929
[40 Live Animals and live poultry Respective headings
41 Meat of bovine animals, Respective headings
sheep, goat and uncooked
poultry meat excluding those
sold 935[***] under a brand
name
42 Fish and crustaceans Respective headings
excluding those sold 935[***]
under a brand name
43 Live plants including bulbs, 0601.1010, 0601.1090,
roots and the like 0601.2000, 0602.1000,
0602.2000, 0602.3000,
0602.4000,
0602.9010 and
0602.9090
44 Cereals other than rice, wheat, Respective headings
wheat and meslin flour
930
[45 Edible vegetables including Respective heading]
roots and tubers whether
fresh, frozen or otherwise
reserved (e.g. in cold
storage) but excluding
those bottled or canned.
46 Edible fruits Respective headings
47 Sugar cane 1212.9300
927
928
Under serial number(s) 39, 41 and 42 words omitted by Finance Act, 2023
929
Serial number(s) 40 to 51 inserted by Finance (Supplementary) Act, 2022.
930
Serial number 45 substituted by Finance Act, 2022.
205
Sales Tax Act, 1990
48 Eggs including eggs for 0407.1100, 0407.1900

hatching 0407.2100 and
0407.2900
49 Compost (non-commercial Respective headings

fertilizer)
50 Locally manufactured laptops, 8471.3010 and
computers, notebooks 8471.3020
whether or not incorporating
multimedia kit and personal
computers
51. Newspaper Respective headings
931
[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 Respective
and chapattis headings.]
932
[55. Single cylinder agriculture Respective headings.]
diesel engines (compression
ignition internal combustion
piston engines) of 3 to 36 HP.
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
931
New serial number(s) 52 to 54 added by Finance Act, 2022.
932
New serial number 55 added by Tax Laws (Second Amendment) Ordinance, 2022.
206
Sales Tax Act, 1990
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.
---------
933
[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, 934[14A and 15] of the Annexure, the
Chief Executive, or the person next in hierarchy duly
authorized by the Chief Executive or Head of the importing
company shall certify in the prescribed manner and format as
per Annex-A that the imported items are the company’s bona
fide requirement. He shall furnish all relevant information
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
933
Inserted by Finance Act, 2014
934
The figure and words inserted through Finance Act, 2017
207
Sales Tax Act, 1990
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.
935
[ANNEXURE
S. No Description PCT heading Conditions

(1) (2) (3) (4)
936
[1. ***] omitted
2& ***] omitted
2A
935
936
Serial number(s) 1 to 9 and 11 omitted by Finance (Supplementary) Act, 2022.
208
Sales Tax Act, 1990

(1) (2) (3) (4)
3. ***] omitted
4. ***] omitted
5. ***] omitted
6. ***] omitted
7. ***] omitted
8. ***] omitted
9. ***] omitted
937
10. ***] omitted
11. ***] omitted]
12. Machinery, equipment and Respective 1. The Division dealing

other project related items Headings with the subject matter of
including capital goods, for Industries shall certify in
setting up of hotels, power the prescribed manner and
generation plants, water format as per Annex-B
treatment plants and other that the imported goods
infrastructure related projects are bonafide project
located in an area of 30 km requirement. The
around the zero point in authorized officer of the
Gwadar. Ministry shall furnish all
relevant information
online to Pakistan
Customs Computerized
System against a specific
user ID and password
obtained under section
155D of the Customs Act,
1969.
2. The goods shall not be
sold or otherwise disposed
of without prior approval
of the FBR and payment
of customs duties and
937
209
Sales Tax Act, 1990

(1) (2) (3) (4)
taxes leviable at the time
of import.
938
[13 ***] omitted
.
14. ***] omitted
14A ***] omitted
[15& ***] omitted

15A
15B. ***] omitted
939
[16 ***]
[17. ***] omitted
18. The following parts for If imported by
assembling and manufacturers and
manufacturing of personal assemblers of computers
computers and laptops: and laptops, registered
(i) Bare PCBs 8534.0000 with and certified by
(ii) Power Amplifier 8542.3300 Engineering
(iii) Microprocessor/ 85.42 Development Board in
Controllers accordance with quota
(iv) Equipment for SMT 8486.2000 determined by IOCO
Manufacturing
(v) Laptop batteries 8506.5000
(vi) Adopters 8504.4020
(vii) Cooling fans 8414.5190
(viii) Heat sink 7616.9920
(ix) Hard Disk SSD 8471.7020
(x) RAM/ROMS 8471.7060 and
8471.7090
(xi) System on Chip/FPGA- 85.42
IC
(xii) LCD / LED Screen 8528.7211
(xiii) Motherboards 8534.0000
(xiv) power supply 84.73
(xv) Optical Drives 8471.7040
(xvi) External Ports 8536.2090
(xvii) Network cards 8517.6990
(xviii) Graphic cards 8471.5000
938
Serial number(s) 13 to 15B and 17 omitted by Finance (Supplementary) Act, 2022.
939
S.No. 16 and entries relating thereto omitted by Finance Act, 2015
210
Sales Tax Act, 1990
(xix) wireless cards 8517.6970

(xx) micro phone 8518.3000
(xxi) Trackpad 8471.6020
19. Plant and machinery, except 9917(2) Nil]
the items listed under Chapter
87 of the Pakistan Customs
Tariff, imported for setting
up of a Special Economic
Zone (SEZ) by zone
developers and for
installation in that zone by
zone enterprises, on one time
basis as prescribed in the SEZ
Act, 2012 and rules
thereunder subject to such
condition, limitations and
restriction as a Federal Board
of Revenue may impose from
time to time.
940
[20 Plant and machinery for the Respective The exemption shall be
. assembly/ manufacturing of heading admissible on one time
electric vehicles basis for setting up the
new assembly and/or
manufacturing facility of
the vehicles and
expansion in the existing
units to the extent of
electric vehicles specific
plant and machinery, duly
approved/ certified and
determined by the
Engineering
Development Board
(EDB).]
941
[21 ***] omitted
942
[22 1.Machinery, Respective (i) This concession
equipment and Headings shall also be
spares meant for available to
initial installation, primary
balancing, contractors of
modernization, the project upon
940
New serial number 20 inserted by Finance Act, 2020.
941
Serial number 21omitted by Finance (Supplementary) Act, 2022.
942
New serial number 22 inserted by Finance Act, 2022.
211
Sales Tax Act, 1990
replacement or fulfilment of the

expansion of following
projects for power conditions,
generation namely:-
through hydel, oil, (a) the contractor
gas, coal, nuclear shall submit a copy
and renewable of the contract or
energy sources agreement under
including under which he intends to
construction import the goods
projects entered for the project;
into an (b) the Chief
implementation Executive or head
agreement with of the contracting
the Government of company shall
Pakistan prior to certify in the
15th day of prescribed manner
January, 2022. and format as per
2. Construction Annex-A that the
machinery, equipment imported goods are
and specialized the projects bona
vehicles, excluding fide requirement;
passenger vehicles, and
imported on (c) the goods shall
temporary basis as not be sold or
required for the otherwise disposed
construction of of without prior
project. 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
212
Sales Tax Act, 1990
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.]
943[“Annex-A
Header Information
NTN/FTN of Importer Regulatory Authority Name of Regulatory authority
no.
(1) (2) (3)
Details of Input goods (to be filled by the chief Goods imported (Collectorate of import)
executive of the importing company)
Custom Duty rate
rate
Quantity imported
Date of CRN/
(applic-able)
Collectorate
Sales Tax
(applicable)
Description
Mach No.
HS Code
Quantity
Specs
Mach.
CRN/
UOM
WHT
No.
(4) (5) (6) (7) (8) (9) (10) (11 (12) (13) (14) (15)
)
CERTIFICATE. It is certified that the description
and quantity mentioned above are commensurate
with the project requirement and that the same
are not manufactured locally. It is further certified
that the above items shall not be used for any
other purpose.
943 Annex-A substituted by Finance Act, 2022.
213
Sales Tax Act, 1990
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.]
944
[Annex-B
Header Information
(1) (2)
Details of Input goods (to be filled by the Goods imported (Collectorate of
authorized officer of the Regulatory Authority) import)
Sales Tax rate
Custom Duty
Date of CRN/
Collectorate
CRN/Mach.
(applicable)
(applicable)
Description
HS Code
imported
Quantity
Quantity
UOM
Specs
Mach
WHT
rate
No.
No.
944
Inserted by the Finance Act, 2014
214
Sales Tax Act, 1990
(3) (4) (5) (6) (7) (8) (9 (10) (11) (12) (13) (14)
)
CERTIFICATE Before certifying the above-authorized officer of the

Regulatory Authority shall ensure that the goods are genuine and 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
1969.
945[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;
945
Table-4 added by Finance Act, 2021.
215
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 0707.0000
chilled
8 Peas (pisum sativum) 0708.1000
9 Beans (vigna spp., phaseolus spp.) 0708.2000
10 other leguminous vegetables 0708.9000
11 Peas (Pisum sativum) 0713.1000
12 Grams (Dry/Whole) 0713.2010
13 Dried leguminous vegetables 0713.2090,
0713.9090
14 Beans of the species Vigna mungo 0713.3100
(L.) Hepper or Vigna radiata (L.)
Wilczek
216
Sales Tax Act, 1990
15 Small red (Adzuki) beans (Phaseolus 0713.3200

or 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
21 Broad beans (Vicia faba var. major) 0713.5000
and horse beans (Vicia faba var.
equina, Vicia faba var. minor)
22 Pigeon peas (cajanus cajan) 0713.6000
23 Vanilla (Neither crushed nor ground) 0905.1000
24 Cinnamon 0906.1100
25 Other (Cinnamon And Cinnamon 0906.1900
Tree Flowers)
26 Neither crushed nor ground 0907.1000
(Cloves)
27 Crushed or ground (Cloves) 0907.2000
28 Neither Crushed nor ground 0908.1100
(Nutmeg)
29 Crushed or ground (Nutmeg) 0908.1200
30 Neither crushed nor ground (Maze) 0908.2100
31 Crushed or ground (Maze) 0908.2200
32 Large (Cardammoms) 0908.3110
33 Small (Cardammoms) 0908.3120
34 Crushed or ground (Cardammoms) 0908.3200
(Coriander)
36 Crushed or ground (Coriander) 0909.2200
37 Neither crushed nor ground (Seeds 0909.3100
of Cumins)
38 Crushed or ground (Seeds of 0909.3200
Cumins)
217
Sales Tax Act, 1990
39 Neither crushed nor ground (Seeds 0909.6100

of Anise, Badian, Caraway, Fennel
etc)
40 Crushed or ground (Seeds of Anise, 0909.6200
Badian, Caraway, Fennel etc)
41 Thyme; bay leaves 0910.9910
42 Barley (Seeds) 1003.1000,
1003.9000
43 Sunflower seeds ,whether or not 1206.0000
broken
44 Locust beans 1212.9200
45 Cereal straws and husks 1213.0000
46 Knives and cutting blades for paper 8208.9010
and paper board
47 Of a fat content, by weight, not 0401.1000
exceeding 1 % (milk and cream)
48 Of a fat content, by weight, 0401.2000
exceeding 1 % but not exceeding 6
% (milk and cream)
exceeding 6 % but not exceeding
10% (Milk and Cream)
exceeding 10 % (Milk and Cream)
51 Leeks and other alliaceous 0703.9000
vegetables
52 Cauliflowers and headed broccoli 0704.1000
53 Brussels sprouts 0704.2000
54 Cabbage lettuce (head lettuce) 0705.1100
55 Lettuce 0705.1900
56 Chicory 0705.2100,
0705.2900
57 Fruits of the genus Capsicum or of 0709.6000
the genus Pimenta
58 Figs 0804.2000
59 Fresh (grapes) 0806.1000
218
Sales Tax Act, 1990
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

77 Tools for masons, watchmakers, 8205.5900
miners and hand tools nes
78 For kitchen appliances or for 8208.3000
machines used by the food industry
79 Other kitchen appliances 8208.9090
946
80 Yogurt [0403.2000]
81 Other (Potatoes) 0701.9000
82 Sweet corn 0710.4000
83 Mixtures of vegetables 0710.9000
946 Expression substituted by Finance Act, 2022.
219
Sales Tax Act, 1990
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
(Ginger)
94 Wheat and Meslin(Other) 1001.1900
95 Wheat and Meslin (Other ) 1001.9900
96 Of Wheat (Flour) 1101.0010
97 Of Meslin 1101.0020
98 Vermacelli 1902.1920
99 Other (Packed Cake) 1905.9000
100 Homogenised perparations 2007.1000
101 Citrus Fruit 2007.9100
102 Other (jams) 2007.9900
103 Organic surface-active products and 3401.3000
preparations for washing the skin, in
the form of liquid or cream and put
up for retail sale, whether or not
containing soap
104 Preparations put up for retail sale 3402.2000
105 Other (washing preparations) 3402.2000

106 Tableware and kitchenware of 6911.1090
porcelain or china
107 Household articles nes & toilet 6911.9000
articles of porcelain or china
108 Glassware for table or kitchen 7013.4900
purposes (excl. glass having a linear
c
220
Sales Tax Act, 1990
109 Glassware nes (other than that of 7013.9900

70.10 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)
221
Sales Tax Act, 1990
The
SEVENTH SCHEDULE
947
[***]
948
[The
EIGHTH SCHEDULE
[See clause (aa) of sub-section (2) of section 3]
Table-1
S. Description Heading Nos. Rate of Condition
No. of the First Sales Tax
Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
949
[1. ***]
950
[2. ***]
951
[3. ***]
952
[4. ***] omitted
[5. ***]
6. ***] omitted
7. ***] omitted
8. ***] omitted
9. ***] omitted
10. ***] omitted
11. ***] omitted
12. ***] omitted
947
The seventh schedule omitted by the Finance Act, 1997
948
The eighth schedule inserted by the Finance Act, 2014
949
950
951
S. No. 3 and entries relating thereto omitted by Finance Act, 2015
952
Serial number(s) 4 and 6 to 12 omitted by Finance (Supplementary) Act, 2022.
222
Sales Tax Act, 1990

Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
953
[13. ***] omitted
[14. ***] omitted

15. ***] omitted
16. ***] omitted
17. ***] omitted
954
[18. ***]
955
[19. ***]
20. ***] omitted
956
[21. ***]
957
[22. ***]
23. Second hand and worn 6309.0000 5%
clothing or footwear
958
[25. ***]
26. ***] omitted
27 ***] omitted
28 ***] omitted
29 ***] omitted
30 ***] omitted
959
[31. [..........]] omitted
960
[32. [***] omitted
2
[33. [..........]] omitted
34. ***] omitted
953
Serial number(s) 13 to 17, 20, 26 to 30 and 34 omitted by Finance (Supplementary) Act, 2022.
954
955
956
957
958
959
960
223
Sales Tax Act, 1990

Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
961
[35 [..........]] omitted
to
42].
962
43. Natural gas Respective [5%] If supplied to fertilizer
heading plants for use as feed
stock in manufacturing
of fertilizer
44. Phosphoric acid 2809.2010 5% If imported by fertilizer
company for
manufacturing of DAP
963
45. ***] omitted
46. ***] omitted
47. Locally produced coal 27.01 Rs. Nil
964
[700]
per metric
tonne or
965
[18%]
ad
valorem,
whichever
is higher
966
[48 [..........]] omitted
& 49
967
[50 ***]
.
[51. ***]
968
[52 ***]
.
53. The following 5% Subject to same
cinematographic limitations and
equipment imported conditions as are
961
S.No(s) 33 & 35 to 42 omitted by Finance Act, 2018.
962
For the figure “10” the figure “5” substituted through Finance Act, 2018.
963
Serial number(s) 45 and 46 omitted by Finance (Supplementary) Act, 2022
964 Expression substituted by Finance Act, 2022.
965
Expression substituted by Finance (Supplementary) Act, 2023.
966
S.No(s) 48 & 49 omitted by Finance Act, 2018.
967
S.No(s) 50 to 51 omitted by Finance Act, 2021.
968
224
Sales Tax Act, 1990

Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
during the period specified in Part-1 of
commencing on the Fifth Schedule to the
1st day of July, 2018 Customs Act, 1969 for
and ending on the availing 3%
30th day of June, concessionary rate of
2023. customs duty on the
import of these
equipment.”;
(i) Projector 9007.2000
(ii) Parts and 9007.9200
accessories for
projector
(iii) Other 9032.8990
instruments and
apparatus for
cinema
(iv) Screen 9010.6000
(v) Cinematographic 9010.9000
parts and
accessories
(vi) 3D Glasses 9004.9000
(vii) Digital Loud 8518.2200
Speakers
(viii) Digital Processor 8519.8190
(ix) Sub-woofer and 8518.2990
Surround
Speakers
(x) Amplifiers 8518.5000
(xi) Audio rack and 7326.9090
termination 8537.1090
board
(xii) Music 8519.8990
Distribution
System
(xiii) Seats 9401.7100
(xiv) Recliners 9401.7900
(xv) Wall Panels and 7308.9090
metal profiles
225
Sales Tax Act, 1990

Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
969
(xvi) Step Lights [Respective
headings]
(xvii)Illuminated Signs 9405.6000
(xviii) Dry Walls 6809.1100
(xix) Ready Gips 3214.9090
970
54. ***] omitted
55. ***] omitted
971
56. Potassium Chlorate Respective [18%] Import and supply
(KCLO3) headings alongwith thereof. Provided that
rupees rate of rupees 973[60]
972
[60] per kilogram shall not
per apply on imports made
kilogram by and supplies made
to organizations under
the control of Ministry
of Defence Production.
57. Rock phosphate Respective 10% If imported by fertilizer
headings manufacturers for use
in the manufacturing of
fertilizers.
974
[58 LPG 2711.1910 10% Imports thereof and
. local supplies of such
imported LPG.”.]
[59. ***] omitted
975
[60 ***] omitted
.
61. ***] omitted
62. ***] omitted
63. ***] omitted
64. ***] omitted
969 Words substituted by Finance Act, 2022.

970
Serial number(s) 54, 55, 59 and 61 to 64 omitted by Finance (Supplementary) Act, 2022
971
972 The figure substituted by Finance Act, 2022.
973
The figure substituted by Finance Act, 2022.
974
S.No. 58 added by Finance Supplementary (Amendment) Act, 2018.
975
Serial number 60 “Fat filled Milk” omitted by Finance Act, 2022.
226
Sales Tax Act, 1990

Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
976 ***]
[65
.
Supplies as made 977 if supplied goods are
66. Respective [15%]
from retail outlets as Headings finished fabric, and
are integrated with locally manufactured
Board’s computerized finished articles of
system for real-time textile and textile
reporting of sales made-ups and leather
and artificial leather
subject to the condition
that they have
maintained 4% value
addition during the last
six months”; and
***] omitted
978
[66
A
66B ***] omitted
67. ***]
68. ***] omitted
69. ***] omitted
979
[70 Following locally Respective 1%
. manufactured electric Heading Local supplies only]
vehicles
(i) Road
Tractors for semi-
trailers (Electric
Prime Movers)
(ii) Electric
Buses
(iii) Three
Wheeler Electric
Rickshaw
976
977
The expression substituted by Finance Act, 2023
978
Serial number(s) 66A, 66B and 68, 69 omitted by Finance (Supplementary) Act, 2022
979
Serial number 70 substituted by Finance (Supplementary) Act, 2022
227
Sales Tax Act, 1990

Schedule to
the Customs
Act, 1969 (IV
of 1969)
(1) (2) (3) (4) (5)
(iv) Three
Wheeler Electric
Loader
(v) Electric
Trucks
(vi) Electric
Motorcycle
980[71
Following locally Respective 1% If supplied locally
. manufactured or heading
assembled electric
vehicles (4
wheelers) till 30th
June, 2026:
(i) Small cars/
SUVs with 50 Kwh
battery or below;
and
(ii) Light
commercial
vehicles (LCVs)
with 150 kwh
battery or below
72. Motorcars 87.03 12.5% Locally
manufactured or
assembled motorcars
of cylinder capacity
upto 981[850cc]
982
[73 Locally
. manufactured
980
981
982
Serial number 73 substituted by Finance (Supplementary) Act, 2022
228
Sales Tax Act, 1990
Hybrid electric
vehicle: 87.03 8.5%.
(a) Upto 1800 cc 87.03 12.75%
(b) From 1801 cc
to 2500 cc
74. Goods supplied Respective 16%.]
from tax-exempt headings
areas of erstwhile
FATA/PATA to the
taxable areas
983
[75 ***]
984 ***] omitted
[76
985
[77 personal computers 8471.3020 5% If imported in CBU
and Laptop and condition
computers, 8471.3010
notebooks whether
or not incorporating
multimedia kit
986
[78 Supply of locally 71.13 3% No input tax shall
. manufactured be adjusted
articles of
jewellery, or parts
thereof, of
precious metal or
of metal clad with
precious metal.
79. Electric vehicle in 8703.8090 12.5%
CBU condition of
50 kwh battery or
below
80. EV transport Respective 1%
buses of 25 seats heading
or more in CBU
condition
983
984
Serial number 76 omitted by Finance (Supplementary) Act, 2022
985
New serial number 77 added by Finance (Supplementary) Act, 2022
986
New serial number(s) 78 to 82 added by Finance Act, 2022
229
Sales Tax Act, 1990
987
[8 Substances Respective 1% Subject to the
1. registered as heading conditions that:
drugs under the (i) Tax charged
Drugs Act, 1976 and deposited by
(XXXI of 1976) the manufacturer
and medicaments or importer, as the
as are classifiable case may be, shall
under chapter 30 be final discharge
of the First of tax in the supply
Schedule to the chain
Customs Act, (ii) No input tax
1969 (IV of 1969) shall be adjusted
except the in the supply
following, even if chain.
medicated or
medicinal in
nature, namely:-
(a) filled infusion
solution bags
imported with or
without infusion
given sets; (b)
scrubs,
detergents and
washing
preparations; (c)
soft soap or no
soap; (d)
adhesive plaster;
(e) surgical tapes;
(f) liquid paraffin;
(g) disinfectants,
and (h) cosmetics
and toilet
preparations. This
substitution shall
be deemed to
987
Serial numbers 81 & 82 substituted by Finance Act, 2023
230
Sales Tax Act, 1990
have been made

from the 1st day
of July, 2022.
82. Raw materials for Respective 1% Subject to the
the basic heading conditions that: (i)
manufacture of DRAP shall certify
pharmaceutical item-wise
active ingredients requirement of
and for manufacturers of
manufacture of drugs and APIs
pharmaceutical and in case of
products, import shall furnish
provided that in all relevant
case of import, information to
only such raw Pakistan Customs
materials shall be Computerized
entitled to System; and (ii) No
reduced rate as input tax shall be
specified in adjusted in the
column (4) which supply chain.]
are liable to
customs duty not
exceeding eleven
per cent ad
valorem, either
under the First
Schedule or Fifth
Schedule to the
Customs Act,
1969 (IV of 1969)
or under a
notification issued
under section 19
thereof.
988
[8 DAP Respective 5% Subject to the
3 headings condition that no
refund of
988
New serial number added by Finance Act, 2023
231
Sales Tax Act, 1990
excessive input
tax, if any, shall be
admissible.]
989[Table-2 ***]
Annex-A
Header Information
NTN/FTN of Importer Regulatory authority no. Name of Regulatory authority
(1) (2) (3)
Details of Input goods (to be filled by the chief Goods imported (Collectorate
executive of the importing company) of import)
rate (applic-
Sales Tax rate

Custom Duty
Date of CRN/
Collectorate
(applicable)
Description
Mach No.
HS Code
imported
Quantity
Quantity
Mach.
Specs
CRN/
UOM
WHT
able)
No.
(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
CERTIFICATE. It is certified that the description and quantity mentioned

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

the person next in hierarchy duly
authorized by the Chief Executive
Name ______________________
N.I.C. No. __________________________________
NOTE:-- In case of clearance through Pakistan Customs Computerized

1969.
Explanation.—
Chief Executive means.—
989
Table -2 omitted by Finance (Supplementary) Act, 2022.
232
Sales Tax Act, 1990
1. owner of the firm, in case of sole proprietorship; or

2. partner of firm having major share, in case of partnership firm;
or
3. Chief Executive Officer or the Managing Director in case of
limited company or multinational organization; or
4. Principal Officer in case of a foreign company.
--------------
Annex-B
Header Information
(1) (2)
Details of Input goods (to be filled by the Goods imported
authorized officer of the Regulatory (Collectorate of import)
Authority)
Sales Tax rate
Custom Duty
Date of CRN/
Collectorate
CRN/Mach.
(applicable)
(applicable)
Description
HS Code
imported
Quantity
Quantity
UOM
Specs
Mach
WHT
rate
No.
No.
(12
(3) (4) (5) (6) (7) (8) (9) (10) (11) (13) (14)
)
CERTIFICATE. Before certifying the above-authorized officer of the

Regulatory Authority shall ensure that the goods are genuine and bona fide
requirement of the project and that the same are not manufactured locally.
Signature ________________________
Designation ________________________
NOTE:-- In case of clearance through Pakistan Customs Computerized

1969.
-------------
233
Sales Tax Act, 1990
[The
990
NINTH SCHEDULE
[See sub-section (3B) of section 3]
991
[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
992[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.]
990
The Ninth Schedule added by the Finance Act, 2015
991 Table-I, Table-II and conditions substituted by Finance Act, 2020.
992 Proviso and Explanation to Table-1 inserted by Finance Act, 2021.
234
Sales Tax Act, 1990
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 US$ Rs. 130 Rs. 10 Rs. 10
30 (excluding smart
phones)
B. Not exceeding US$ Rs. 200 Rs. 10 Rs. 10
30 (smart phones)
C. Exceeding US$ 30 Rs. 200 Rs. 10 Rs. 10
but not exceeding US$
100
D. Exceeding US$ 100 Rs. 1,680 Rs. 10 Rs. 10
but not exceeding US$
200
E. Exceeding US$ 200 993
[18%] ad Rs. 1,740 Rs. 10
but not exceeding US$ valorem
350
F. Exceeding US$ 350 994 Rs. 5,400 Rs. 10
[18%] ad
but not exceeding US$ valorem
500
G. Exceeding US$ 500 995 Rs. 9,270 Rs. 10
[25%] ad
valorem]
993
Expression substituted by Finance (Supplementary) Act, 2023
994
995
235
Sales Tax Act, 1990
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;
(iii) The tax paid under this Schedule shall not be deductible against the
output tax payable by the purchaser or importer of the goods specified in
this Schedule;
(iv) The input tax paid on the input goods attributable to the goods
specified in this Schedule shall not be deductible for the tax payable under
this Schedule; and
(v) The Board may prescribe further mode and manner of payment of tax
due under this Schedule.]
996[The
TENTH SCHEDULE
[See sub-section (1B) of section 3]
997
[(1)]The tax on bricks, falling in PCT heading 998[6901.0000],
shall be paid on fixed basis, 999[ ] at the rates specified in Table
below:–
996
The new Tenth Schedule, the Eleventh Schedule and the Twelfth Schedule added through Finance Act, 2019.
997
Existing paragraph renumbered as paragraph (1) by Finance Act, 2020.
998
PCT heading “6901.1000” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020
999
Expression “on monthly return,” Omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020
236
Sales Tax Act, 1990
TABLE
S. Region or area Tax
No. payable
per month
(1) (2) (3)
1. Lahore, Rawalpindi and Islamabad Rs. 12,500
districts
2. Attock, Chakwal, Jehlum, Mandi Rs. 10,000
Bahauddin, Sargodha, Gujrat, Sialkot,
Narowal, Gujranwala, Hafizabad,
Sheikhupura, Kasur, Nankana Sahib,
Chiniot, Faisalabad, Jhang, Toba Tek
Singh, Okara and Sahiwal districts
3. Khushab, Mianwali, Bhakar, Layyah, Rs. 7,500
Muzaffarghar, Dera Ghazi Khan,
Rajanpur, Multan, Lodhran, Khanewal,
Vehari, Bahawalpur, Pakpattan,
Bahawalnagar, Rahim Yar Khan
districts; and Sindh, Khyber-
Pakhtunkhwa and Baluchistan provinces
237
Sales Tax Act, 1990
1000
[(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
feet)
4. Kerb Stone Rs. 5 per piece
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.]
1000
New paragraph (2) and its Table along with Note inserted by Finance Act, 2020.
238
Sales Tax Act, 1990
1001[The
ELEVENTH SCHEDULE
[See sub-section (7) of section 3]
TABLE
The rates for withholding or deduction by the withholding agents 1002[are specified
as below provided that withholding of tax under this Schedule shall not be
applicable to the goods and supplies specified vide clauses 1003[***] after the
Table]
S. Withholding agent Supplier Rate or extent of deduction

No. category
(1) (2) (3) (4)
1004
1. (a) Federal and provincial [Active 1/5th of Sales Tax as shown on
government departments; Taxpayers] invoice
autonomous bodies; and
public sector organizations
(b) Companies as defined in
the Income Tax Ordinance,
2001 (XLIX of 2001)
2
2. (a) Federal and provincial [Active 1/10th of Sales Tax as shown
government departments; Taxpayer] on invoice
autonomous bodies; and registered as a
public sector organizations wholesaler,
dealer or
(b) Companies as defined in distributor
the Income Tax Ordinance,
2001 (XLIX of 2001)
2
3. Federal and provincial [persons Whole of the tax involved or
government departments; other than as applicable to supplies on
autonomous bodies; and Active the basis of gross value of
public sector organizations Taxpayers] supplies
2
4. Companies as defined in the [persons 5% of gross value of supplies
Income Tax Ordinance, 2001 other than
(XLIX of 2001) Active
1005
[excluding companies Taxpayers]
exporting surgical
instruments]
1001
Eleventh Schedule inserted by Finance Act, 2019.
1002
1003 Expression omitted by Finance Act, 2022.
1004
1005
239
Sales Tax Act, 1990
S. Withholding agent Supplier Rate or extent of deduction

No. category
(1) (2) (3) (4)
5. Registered persons as Person Whole of sales tax applicable
recipient of advertisement providing
services advertisement
services
6. Registered persons 2[persons Whole of sales tax applicable.
purchasing cane molasses. other than
Active
Taxpayers]
1006
[7. Registered persons Persons 75% of the sales tax
manufacturing lead batteries supplying any applicable”.
kind of lead
under chapter
78 (PCT
Headings:
7801.1000,
7801.9100,
7801.9900,
7802.0000,
78.03,
7804.1100,
7804.1900,
7804.2000,
78.05,
7806.0010,
7806.0020,
7806.0090) or
scrap batteries
under chapter
85 (PCT
Headings:
1007
[Respectiv
e headings]
1006
New serial numbers 7 and 8 inserted by Finance Act, 2021.
1007
240
Sales Tax Act, 1990
1008
8. Online market place Persons [1]% of gross value
other than of supplies:
active Provided that the
taxpayers provisions of this entry
shall be effective from
the date as notified by
the Board.]
(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;
(viii) Supplies made by an Active Taxpayer as defined in the Sales
Tax Act, 1990 to another registered persons with exception of
advertisement services; and
1008
241
Sales Tax Act, 1990
1009
[(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
New clause (ix) inserted by Finance Act, 2020.
242
Sales Tax Act, 1990
1010[The
TWELFTH SCHEDULE
[See sub-section (2) of section 7A]
TABLE
S. No. Goods or class of PCT Rate

goods Heading
(1) (2) (3) (4)
1. All imported goods Respective 3% ad
subject to exclusions Heading valorem
as in conditions and
procedure given after
the Table
Procedure and conditions:–
(1) The sales tax on account of minimum value addition as payable

under this Schedule (hereinafter referred to as value addition
tax), shall be levied and collected at import stage from the
importers on all taxable goods as are chargeable to tax under
section 3 of the Act or any notification issued thereunder at the
rate specified in the Table in addition to the tax chargeable under
section 3 of the Act or a notification issued thereunder:
(2) The value addition tax under this Schedule shall not be charged
on,—
1011
[(i) Raw materials and intermediary goods imported by a
manufacturer for in-house consumption 1012[excluding
compressor scrap (PCT heading 7204.4940), motor
scrap (PCT heading 7204.4990) and copper cable
cutting scrap (PCT heading 7404.0090)]
1010
Twelfth Schedule inserted by Finance Act, 2019.
1011
Clause (i) substituted by Finance Act, 2020.
1012
Expression added by Finance Act, 2022.
243
Sales Tax Act, 1990
(ii) The petroleum products falling in Chapter 27 of Pakistan

Customs Tariff as imported by a licensed Oil Marketing
Company for sale in the country;
(iii) Registered service providers importing goods for their in-
house business use for furtherance of their taxable activity
and not intended for further supply;
(iv) Cellular mobile phones or satellite phones;
(v) LNG / RLNG;
(vi) Second hand and worn clothing or footwear (PCT
Heading 6309.000);
(vii) Gold, in un-worked condition; 1013[***]
(viii) Silver, in un-worked condition;
(ix) 1014[The goods as specified in the Third Schedule on which
tax is paid on retail price basis.1015[;and
1016
[(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.
1017
[(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
1013
The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020
1014
Clause (ix) inserted vide SRO 1321(I)/2019 dated 08 th November, 2019.
1015
The word “and” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020.
1016
Clause “(x)” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020
1017
New clauses inserted by Finance Act, 2021.
244
Sales Tax Act, 1990
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.
1018
[“(4) The refund of excess input tax over output
tax, which is attributable to tax paid under this
Schedule, shall not be refunded to a registered person
in any case, except that as used for making of zero-
rated supplies.”]
(5) The registered person, if also dealing in goods other
than imported goods, shall be entitled to file refund
claim of excess carried forward input tax for a period
as provided in section 10 or in a notification issued
there under by the Board after deducting the amount
attributable to the tax paid at import stage i.e. sum of
amounts paid during the claim period and brought
forward to claim period. Such deducted amount may
be carried forward to subsequent tax period.]
1019[THIRTEENTH SCHEDULE”
(Minimum Production)
[See sub-section (9AA) of section 3]
Minimum production of steel products.—
The minimum production for steel products shall be determined as

per criterion specified against each in the Table below:
Table
S. Product Production criteria

No.
(1) (2) (3)
1018
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.”
1019
New Thirteenth Schedule inserted by Finance Act, 2021.
245
Sales Tax Act, 1990
1. Steel billets and ingots One metric ton per 700 kwh of
electricity consumed
2. Steel bars and other re- One metric ton per 110 kwh of
rolled long profiles of electricity consumed
steel
3. Ship plates and other re- 85% of the weight of the vessel
rollable scrap imported for breaking”; and
Procedure and conditions:–
(i) both actual and minimum production and the local supplies
shall be declared in the monthly return. In case, the minimum
production exceeds actual supplies for the month, the
liability to pay tax shall be discharged on the basis of
minimum production:
Provided that in case, in a subsequent month, the
actual supplies exceed the minimum production, the
registered person shall be entitled to get adjustment of excess
tax on account of excess of minimum production over actual
supplies:
Provided further that in a full year, as per financial
year of the company or registered person, or period starting
from July to June of next year, in other cases, the tax actually
paid shall not be less than the liability determined on the
basis of minimum production for that year and in case of
excess payment no refund shall be admissible:
Provided also that in case of ship-breaking, the
liability against minimum production, or actual supplies,
whichever is higher, shall be deposited on monthly basis on
proportionate basis depending upon the time required to
break the vessel;
(ii) the payment of tax on ship plates in aforesaid manner does

not absolve ship breakers of any tax liability in respect of
items other than ship plates obtained by ship-breaking;
(iii) the melters and re-rollers employing self-generated power

shall install a tamperproof meter for measuring their
246
Sales Tax Act, 1990
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.
247

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Sales Tax Act, 1990

Sales Tax Act, 1990

(Act No. III of 1951 as Amended

The amendments made through

Tax Laws (Amendment) Act, 2024

17. Omitted ............................................................................. ..……..55

32AA. Omitted. ............................................................................. ………74

45. Omitted. ............................................................................ ……..102

WHEREAS it is expedient to consolidate and amend the law relating to

It is hereby enacted as follows:-

1. Short title, extent and commencement.― (1) This Act may

(2) It extends to the whole of Pakistan.

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

the subject or context,--

in any of the following categories, namely:-

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

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

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

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

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

(iii) without limiting the generality of sub-clause (i) and subject to

(a) an individual and a relative of the individual;

(b) members of an association of persons;

(c) a member of an association of persons and the association,

(e) a shareholder in a company and the company, where the

(i) fifty per cent or more of the voting power in the

(ii) fifty per cent or more of the rights to dividends; or

(iii) fifty per cent or more of the rights to capital; and

(f) two companies, where a person, either alone or together

(i) fifty per cent or more of the voting power in both

(ii) fifty per cent or more of the rights to dividends in

(iii) fifty per cent or more of the rights to capital in both

(iv) two persons shall not be associates under sub-clause

(v) In this clause, “relative” in relation to an individual,

(a) an ancestor, a descendant of any of the

(b) a spouse of the individual or of any person

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

[(4) “Board” means the Federal Board of Revenue established

under section 3 of the Federal Board of Revenue Act, 2007;]

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

Commissioner Inland Revenue under section 30;]

“Commissioner (Appeals)” means Commissioner of Inland

Revenue (Appeals) appointed under section 30;]

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

appointed under section 30;]

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

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

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

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

(e) a trust, a co-operative society or a finance society or any other

(f) a foreign association, whether incorporated or not, which the

company for the purposes of the Income Tax Ordinance 2001

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

fulfils each of following conditions, namely:−

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

(b) is located in a residential area;

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