Islamabad. the t" April .2011.

TABU::

G·QVIERNMENl OF PAKISTAN MliNlSTRY OF FI,NIA:NCE. ECONOMIC AFFAIRS, StATISTICS AND REVENUE ,(IREVEt4UE DIVrSION)

NOliJ,FICA nON (S,A~ES TAX ANID EXCJS,E)

S,R.O,~ (1)/20'11.- rill exerci5El of the powers conferred ,by clause {c) of s&cticn '" read wilin c:1:ii!!.lse (b) of sub--se~Hon (2:) and ,:sub--section {6} {'~ S8'Ction 3. cIlause ,(b" of sub,sectilll1 (1) of section B, cI"H.tse' (!iI)' ofsub-sectrol1l '2) of section 13,and sectiotll1'1' of the S~!.res Tax Act" 1990, and Sl.Jb-lSection (2} of section 16 read wi1!h section ,3,A of the Federal Excise Act. 2005 andl 11'1 sl.!Ipersession of its Notification No.S.R.O.509(1}/2001, dated the' gu, June, 2·007, the' Federal (lovernment is, p~ea;Sed ~o notify the goods speccifiiXJ if! eolumn (2) of the 'Ta'bt.e ootow under the peT heading n!.lmbem m:enUn.l'led in Ct)llJml"l (3) or tI1tlaaid lab~e. to be '!he good's on whIch sales, ta:x shall, subject to ~he otlJ'!ditiol'1sstated il'11' U,~ ,notificatJon, be tl"lilrged at the I'fatili' of zere pemen1 on the supply ,arnd Imparl themaf; 011' at reduced fate of sales tax: of six percent or, as the case maIY 00, a'i Fcuii' per-rent' a's :specffied inl the said condltioi'l.!il, l1Iamely:-

(1 ~

(2)

(3)

011.

lI.eath:er and artictes l:l'i-efeQf irl-cludlnQ artlficla'llealher footwear

4tcn to 4:1. 15, 64.0J, 64.D4, S<!I05 1000, 6405.2000 iirld Olh&f fespeclfue headings

02,

Chapter 51) to 'Chapter 63 aM (I'lIler ~~di'ij'e neading;-s.

03.

1108.12{](l

Mucrj~andlhicMess. WOeHler or not mooifie(j, de'-rived from loeml tiean-s looUlst bean sE!ed<s ell' guarseeds

13D2.32'HJ i~ 302, 32901. 13lLt3900

,(16.

'1 <101 .2000

01,

95M.:200Q" 9506 Bnd olher respective heading:s

08.

Respective headings

09. Emery pow~rlgrai"''S

2513,2010

1 0. Magne.slui'1l'1 oxide

25 Hit90Hl

11. Conln!) all

2710.UJ91

12. Spin finish ail

2710.1'898

13. Silicon (hoxid~

14 .ntanl urn d~o;tide

15, Antimooy ol([de

282.5.8000

16. SOOil.!lm: bromate

2829.110~

.283<O.Hl,C, 2B30.10,gO

2831.1010

HI. StJ(iillrn sulphite and sodium'hydroslJlphlde

2832.1[110, 2832..1000

20. Df&idiiJm sulphate

21. Ph ospl'llMites (h'llpOp''''05,phib3!S~ and pnosphonales(

phosphates) .

2B35.10{)O

22. SiJtillJm dtchmmate

.2847.0000

.:oi!9Q.2.430C

I 26. ElttyJene Glycol' (MEG)

21. 4...ch'lom 3-.melhyl phenol andl·ahloro Ilydro QUi'none

2908.U!1IQ

I 28, IJJ-elhyl'ene !J~col

2900.4490

32. Formic acid

2915.1100

33,. Sod iul'il'l formate

34. Aoette acidl

2915.:2100

·35, Scdiumacetate

2916.1400

39. Qxal!(; :acid

2917.11110'

.2

29117.1200

41 Meleto Ackj'

28'H.1i900

42, Pu re tere.phU'la~c ,gad (PTA)

,2917'.3610

291:8. 12ClO

M. GI!JCQ.l1ic acid and' lis s.e,lts

2918.1600

2918.1800

ZB19.909D

47. IDye-s intermedia;IM

2,9'~1.0000 :2:922.0000 292:3,0000 2.924.0'000 ~927 .0(100 2933.0000 2934.0000

48. DMF (lDim~thyl' Fcrmamrd'e')

29l4,19BO

29,28.0,090

51. l'o;I!UTil1!l1 'exlrac~ af vegetable origin; lannins and their salts, ,el11efS, 'Hter-s & other d,erivatives

32D1.100Ql 320" .2000' 320UI1J20 -3201~e090

52. SVI"I u,etl,c ortg,aoic: ta f1Ini.f1g S~ bSitafllCE!S, inol'igal'llk: lall n lUll) substal'loos, 'lanningl pe,.r~etr,a~iofis, whelher or not oontaiOrl1g f!1atuI<d tan I'IJn91 !iilb! !;;l.i~aIi10e-s; ®zymaak; plie\p3rn1iorns f'Oii pretal'lfl'il1lg

3202.1000 32.02.9010 3202.90'90

32041.1100

3204.1200

3204·.1300

J1.04.11400

-57. Indigo BIlle

320'4.1590

oil. !Dyes, sulphur

32tl4..199{l

fl3_ Synlhetic 'Ilrgal'l~ pfOd lIIct$ OfOL klrld used as ~uli)ITesoent brigilt:el'1lng i~ enb>.

32<l61£IOO

3210.0020

~4O:;!,.1210 8402,122'0 3402_1290

13. au rface active preparamtcmSOll'ild el@ill1ill'l.,9 ~p~:r.~iIiI~M exoludlngl,dere FgBnts

74_ 'Pil'E!lPlars:t1o.ns '~r lne tle.d.me-not cftexl8ra mOl/terral, leatl'u~r,riLir SKins Ql' ather ,rn8!tll'ria I

3403.1 '11,0 3403_11:20 3403_1' ~t90 3403J)~ 10 34.03J;IHlO

3702.3900

SlUt.100iJ

89 Prepa r<1ltrol1 of.8 kiM u sed in ~eattiler or Ilke industries

:3809.9300

90 Compoymli pJastlcla.ers: f:or rubber or p!aS"tOCs

3812.2000

91 AnUmony trilacelate

3815,191 DI

92- P'alladi!!Jm ~~8Iyst

93. E~er:lmlyl.'e salt

91, Olhe.r Vll'ly!1 po1ymers -

H10. Pclyelhytene terept1thalat~Yam g.rad~. and Its wasle

104. Cellulose nitrates iI'IIcmplstidsed

1 05. OltU~IU:eHbi lase nitrates

1'Oi1. Algil"!lc acids, it;. saRs sma esters

3815.9000

3B24..9[J60

:)905,1200

3005.3000

3006.9000

3907.6010

.3908 ,9000

3910,0000

HUt INylon lubl:lS

110. Syntl1etle l<ealher glllip

111. NabJral.rubber latex

113. Rub'oet latex

114. Synlhe~c rubber eBR 1.5021alelC

115. BubldiE!ne mbber

3926.9009

4UG 11. 1 000

40U2.11 00

4002.1900

4002.2000

4002.9900

"UIOUlm,o 4,001 .. 0090

<4-304,0000

'122., Cork Granules

4501.9000

124. Satin IFin[s,rning Wlleers

1.25. Ca1ixrln Fiber

121. Shoe 'lacks

7317.0020

1,29. Nickel not. a[lo~ed

7502.1QOO

7608-,9010

BJoa.2000

, 34. Strfngs

a30B.9090

9l506.9919

139', SlurJs

9S06,22'(10

9600.2910

1-41. Slide fast,eners· fiitted wi1lh cha.in sooo~ Qf baa melal

9607.1100 9601,19GOI

142. Tallow

1.502:.0000

143. CallJslic SQOO (Rq:uid)

2815,1200 2Sf5,1Um

144. ZJlor:: Chforid@

145, Sada AstI

2836.2000

147. .. .. , •.. Olhers (Assorted Chemlcals 'for lleati'ler Induslify) [XR- 2ooB, P-134316-AC (Stall!))

292:9,9090

31'0-2.1000

149, .,' .. ,., others, (As50t;ted Vamishes for le8lher Il'Idor.lryl [LP'- .28- 4~5, SO-fi1l-7a3 (Stahl). Cross L[nker, Pennuthalle)

32108.9000

150. Sho~ Fins-nes

151. Polishes" Creams and simitar preparations for leather [leattler p¢lish, can sl"ray. 11n$!i!nt $plfaj!f ,cans, EX-8S83},iD' A!I'Uiqji.Hll' past~

3.405.1:000

6

1&2.

'Gasell"l, caseinate!!! and! other casein dl1!lFivative'll. otJi1@ffi Ie 5~. Lrn WiiJiZ.;S5.Lm Pig 'Nero C5&K. FIR: Lu:old!o MilE. PR Looide ,665, tm Pia ,c,a Nero, Pr l.uGido 9'la, IvandQFiliH

3~011.9000

........ Otl'i€(;$i {A$~Clrted ciru~mical:s 'ro~ leather indus!ty IBus.ai:i '30 l (Bi.oIck;man)]

3803.9199

Ui5.

•• < •••• < Otl'iefli, (As$!lrtedl·OO~rru\';a.l$ fOil" leather il'idus.try [.AqiJa!en .A,'k!.! Llq, A.r:Ihasl\i'e $ lFJ:ardenef]

3824.9099

'·56.

15B.

t89.

160.

. ..... PoJyvinlv ChlOride ~pvt) 'figbt:!lfllm [Pl!:icSliic boord05 f,QF ~tlflllllf cl!JtIlin:_9Il

3$.20.4910

16t.

foe IPwffand QO~l'lter rrnaterial

15:2 ..

~926.2000

163,

...... Otne-rs [plaslic hOl!f"Ige;rs]

3926.2080

1&41.

39.26.'9070

. ..... , IPJastlcta2ls ·Blll'Id .slapr.es for l~alh~1I" g01l!f!lill81lts l100% PVC pnce tk;~~~$)

......... Latex U-or ~eiill!her in-d:us{ry) [E'ladlerm resin (LanXe5!i)]

400"2,'9100

161.

~005:9900

4411Jl400

'Insole Board!

4811,5990

172.

11:3.

1'7.5.

4822.1000

6001.9200

6JiJ5.:33OO .3923.2100

177.

. ... ,' ,. O:thers [shaving .bl'ades]

18[1.

•... " .. B!soes [cull!erlbr:ades for Leather]]

181,

1&'2.

....... , O!hers, (stopper'& pins:]

83:09.9000

1M. ......... [Parls [Zip slider, !pullers & slope [parts] 9601::WOa
185. My other goads as may be 5pecifred by Federa! I\lo;ard af -
Revenue. CO:NOITIIONS

0) The facililv of ~ertHatklg, shall be: aV.BltI'~b1e to' ·srvery sueh [person engaQ,ed il1l ma.nufadllring or trading in teJdil'e seC'tor (inQuding 'earpe1s and jute) VIffl() is l1eg i'ster,ed for ttl e purpose or sales lax uttter than retal~er, No tax sh all be payab'le at any stErg.a (if the .supply chaln if Q,!JQQ5 are .sold by .3 registered Ipersen to a rreg[is.tered person till '(he stage of pr,ooessing[ W:hel'ie sar;~s ta,xs.lhall 00 charged 099 spGicified hel',eunder;

I[I!) tll'le ben.sfrtof t1nis Ind~ificatiof11 slnall be availab1e 10 r,egistere.d illil:'lporl:ers, tradem. manl.Jf~dures and exporters .. In ease wlierea commercial importer se11s any imjpoil1@d g.oo.cJs to unregis1ered person, he shal~ ICharge and pa.y sale tal( @ 6% IOf \l'a~ue of suppty., if the goods rare us,able' in textile :sector up to the eit:age ofs:pinning including the' product of ~spinning such as yam lind its by-prody~. wnereafter sueh j,mpoife. :shall charge and pay 'Sale-s tax @ 4% of value of supply;

{ill!) no sales tax shall be payable at gInning Of main-made .and s,yntheuc; tiber maournchJling s~ag,e;

(iv) in caoo of registered manufacturerslfiliipoflin:g their inputs all' Bcquil1ilFlQ thelr inputs from commerCial! import,ers Or I'Jeglstered manufaoturiElffi,. such m~nufad:iJrefS shall Idlarge' and pay sales ~tIiX @ 6% of \IIalue of supply onl~ at the spinnili1Q stage', l.e. ~am ,and its by~p.rnduQts if l1:ese goods are $iJjp'pl~d bll any unr&gistefied person pf10vided tna~ ir such 'go(lds relate ~:o the: s~tagoo :~ spinnIng, ~l!e!ii tax shall be C'haJl€dr and ,paJd @ 4% ,of 1he va!rus of :sY'IPPky;

(!oI') in case (if yam purchases 01'1 payment of sales telC @ 6% .of val'lle of .s.upply rrom spinlling mi~l$ by !JlI1registemd pers(lf'\S i.e" itr,aiiers or Iperscl'ns enQQged in activities luke :sizTr.g, warping, weawng, intermediary and other ,em:U1i3'ry prooosses etc. before processing of finjsh:ed 'fabric, no 1iurther amount of sOIles. taoc shall be charged 'or demanded;

(vi) in case' o~ regM3.tered persons, ,sngaQ'ed ln providlli-g IProcessing selV'io~s of ,any kind inrespeot o'f textile goods. :suoh pernon shall 'charge from the persQn who owns the goods but is not a registered peraon, !isles tax @ 4% ,of servroe charges;

(vii) in case cf stages aft,er' weaving. if tile '(aJbr1c lSi Sold ,by a registered manufSdurell' to an IJnregiste.red person, sales tax 'shall be d!~rg.ed @ 4% of lJalue ,of supply, if such mam.ffo::!d:ur,er has availed zere-rate facility at previous stages of the Iproduction chain.

{viii) at the 5iageof processing or finlshi)"! 9 of any kind 01: ti brtc or stitehing of'such fabri{;;, if' any regtstered person supplies ithe goods i!'lcludmgl'inIshed products rnl<e finished, dyedJ'process,adJprinted 'fabrio, ta.xti!e apparel. home t~xtillEl' and ~athil'ilgl l.rtcludifi.g 'gaDTl'1ef'lb;;and all non-woven'! p,1'odluds etc. to an UJI"!regis1ered bl!J~r. he sh,fi'll dharge and pay sales tax @ 4% c,W'the' ""slue ,of supply: and

(~) the registel1ed persons who h'3iveaequired goods &t zero-rate under this notilicatiof'l sh:aJ~ pay sales 'lax @ '.¢% of value of sl!Ipply an their supplles uf aJllldndl6< of finished products to nlitailers, regardle55 of'tle registration Qif Soucl1l1€:tailers.

(I) Z,e'la-rating facUity shall lcover 1iJ1e whol'e Iregistered supp.ly chain covering both imlPorts and local 'supplies except retail;

~i) fE!91s:tratlofH~ wm start: from tanll1e,liioo !SI,nd mta:lil:Jfa.dtuers O'f slIrgiolal and sports '!;I'oods includll'l91the persons ,sngag,edl ill'll snc;i1I'ary lmlustrial' a,ctivities,;

~1Ii) the jobbers working in informal or UlfH.lilgillil]zed seetor 'for indJvidlJal and specified Indus:tn3J~ IOf like prceeases prior hI miiiiJlufadur[_ng ,of leather, '5'IIJrgh;:a~ iand spoits goods, In mrnne:rie'S and ether manufaGtuliing ufllts aJha'l1 not be reqlJiD'ed' to be registeF'ed pn3vlded' their annual t'Umolver from service marges does not exceed Rs. :5 million er their annual utility l'elecotrioiiY,gacs afila te~eiP'llone') 'bills db. not eiX'oeed seven ihYlndr,m:I thtu,J,sand rupees. and if so exqeed, they wiH be, r,eq,uired tOI be, register,ed; and

{Iv) 1'110 sales 'tax shall lbe charged at any slag,e of sU,ppiy for domestlc cOflSUlmpllion le':>!cspt that whefie a 1;anme1ry sup~je-~ its, product to any un-regLstered person other. than 'retailer" I<t Shall chall'lle and fiaty salesl:ax @ 6% Qf the value of supply and lNher@ ,any finished producl of leather, sports er surgical goods is supplied to :Ei'FlrY ~,m~l1e_g,~ter--ed parson by a maJILIhidIJrrlEW C1i~her ~hi51n tannery. suenm anufaO'lt.urer shall

9

ehaug@ andl pal( sales tax @ 4% of the value' ofs"llPpty, All supplies of 1lin~shed g,oods IrTH;I~e to retailers shall, however, be charged ,to sale·s 'tax @4-% regardless of their reg'islmticn.

{u) Benefit of ;z,em-ratingi or reduced rate shall be ad'li'!i1~s'Sible Qnly if ithe 'gooos covered fn thrs notificatkm atrrEi usabl.:e and are used in the aforfi5atd sectors for tradtng and ma.nurncturi'lI'1g' PlJrpo~s. Nlo oUlter sector or industry s.hall be entitled to' 'lJhe bEH1'efit 'of 'this nolificati'On;

(Ii) no lin. put ta>!: ad~l.!Istment 'or H)TUrld shall be ;ad'mis.$ibt;e to any reg:isterredi person ag,ajr;,st hls Ita bilttv of sales tax ,@ 6,'%· of the valu.e of supply, 01" as the ~e may 00, of @ 4% of value of siLlpplll', HO'!lVe¥€r, admlssible refund in esse of capital goods, maintenance parts, lubricants. packing materiaJ!! or other sector-s'peclfic lU:cSed inputs, not covered uflder ilhis, nofil'lcati:cn, whether imported IQr acquired [oeany, shall, be j.'lil11d 10 51.1'I;;h person against zElro-r,ated!;:l'Uppl'lslS in@f'I,e week of filing or 'the com plete claim:

(~ii) the regJst.ere,d perrsons of these secklrn shall be' entitled Ito ecrVJire e1eC'lrlcitll ,and gas at :l:s:ro.-rate in the manner prescribed by Fede'l"8T Board of RB\i'9 r1UJe;

(Iv) subject 10 miscellaneous ,condition ('ii) above, where at any stage of registered supply,onai,l"l, no liability to cl1an'g€l and pay sales [ax accrues under th'is nO'lifica1Jon, 'the supply at: is'bIioh stage :shall be d:eemedi tg be a sup,ply charg,eable to sales tal( ,at the rate of zero percent and' ranecled on Ithe' tax inveice a,ocQ!ilIJ:naly;

(\I') no special e~Gise duly sha'll be charged on tile goods of 'lte said setmfS as mentioned in 'the afQr-esaid Table whether tI1es'e'BI'i8 chargeable to ,z.ero-ra~e OJ t@ r,ed'l.Iood rate of Wl( anrls1peeial B'>!:cia€! duty shan be treated as eJteMpt;

(vi) the persons negistered :after the is!1lYilm::e of flotifrcation but not after 30'1b ciay of June, 2011 in cas·e of IPersons almedy ,engaged in t!lJIsiness·es [1:1 nli~ above' seotors, shalll not b€l qyestioned about theIr past ~r;emsaooon5 il'l their buslll1,esse.s, for the pUl'poiSe of Hie' Sales Tai,)i' Act. 1990' oras the ,cas€ may be, the Federal Exo~-se Ad. 2005 pf,ovlded that. no refund lof ,any ,am:OLIn·t of tax or ,duty already paid or reGOve:red shalll be' admissibr.e tQ, an!llPers'on on aocount of' thh; GOhdltlcn~

(vii) in case of commercia] importers I"etllis.te-red after 'the issuance ,of 1hFS notification, benefit of {his notification shalll be a,\lai1able only lif th.ey satIsfy the! Collector of

HI

CuiSto:msat lhe ~ime of tmpol't of their' first o.of'\signment aboUI their ibl!.lsil'lessand fiinBl'lciQI sO:IJ~u!l'liIe;ss I©TI the basis ora Gerilific~toe 'fimm tht:l b~!'!'k(s} fn whiml tt:Je)t h~wl cpe,necl <lnd will 'QlPer,a~e their business;;a'CCOllnt(s);

(vJii) in case o~ pers,of'ls :airready mghst€:red under the Sal@s Ta:J{ Ad, 1990, Ibenefit' of this not~'I1icatiol'1 iSha Illbe a\la1J~b~9 ol1l~Y if they ;ares!hown as ~C$ive in ,acthl',1i! ta~pavers; list (All) 1011 the w~lbsite of iFedera'l Board [of IReve<f1u@antl have d(jne a declared bus i'I'Ie!:SS' ;adfvity in any oftl1e tall( perieds au r~n91 the !ast twe~'!oI'e months; end

(1x) theoomposJte un~s indu~ing Wholesal'el's (GJ.venl'ilgsulOplies, uflto Ireta'il stage shall PaiV :S-aJfes ton. @ 4% of value Qf!3uppl~' and shall not p~iY'any' ,other amoLl'1'Ii1 or up"t;onl ta:lt: ©r!J thek re1atr sales under ~nl' etne rsc1i'sme for Iretal leI'S under:tJ1e Sal'B~ Tax Ad, 1990 or notificatiol'lls i$isved or flldes 'made lhe re under.

,2_ This l'1o(i:ficatiOc!"! sh@tL~ 'takie effi:!m on and fmm the"5i!1 day of March 20111, prov:id:.ecil ~ha'l :any liab1lity aocnJed under ihi~ flolffi'c:a1iQI!1 ancl as a IOOf!!SelllJef'!,e,e of the :sa,id IS'IJperses!Sh~f'I ShOll'! I t:ek@, effect with ~ml'nooia.te effeot

(KfN~waf -liur~lhh1 Butt) .A.dditi@I'N~1 Seanetary

u