Sales Tax Act, 1990 (Same as on the official website of FBR dated 30-06-2025)

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Sales Tax Act, 1990 
 
 1   
 
 
 
 
 
 
The  
 
Sales Tax Act, 1990  
 
 
        
(Act No. III of 1951 as Amended 
by Act VII of 1990)  
 
As amended up to 30th June, 2025  
 
The amendments made through  
 
Finance Act, 2025  
have been shown in Red  
Sales Tax Act, 1990 
 
 2   
 
 
Contents 
 
Chapter I…………………………………………………………………...…….7 
Preliminary…………………………………………………………  ………..…7 
1.  Short title, extent and commencement……………………………..…...7 
2.  Definitions…………………………………………………… … ..........7 
Chapter-II ............................................................................................... ………25 
SCOPE AND PAYMENT OF TAX………………..…………………..............25 
3.  Scope of tax. .............................................................................. ..……..25  
3A.  Omitted ...................................................................................... …..…..30 
3AA.  Omitted ...................................................................................... ..……..30 
3AAA. Omitted ...................................................................................... …..…..30 
3B.  Collection of excess sales tax etc. ............................................. ..……..30 
4.  Zero rating. ................................................................................ ..……..31 
5.  Change in the rate of tax. ........................................................... ..……..31 
6.  Time and manner of payment. ................................................... …..…..32 
7.  Determination of tax liability. ................................................... ……....33 
7A.  Levy and collection of tax on specified goods on value addition...........35  
8.  Tax credit not allowed. .............................................................. ……....35 
8A.  Joint and several liability of registered persons in supply chain where tax 
unpaid.-………………………………………………….......................37 
8B.   Adjustable input tax. .................................................................. ……....38 
9.  Debit and credit note. ................................................................ …..…..39 
10.  Refund of input tax. ................................................................... ……....39 
11.  Omitted............... ....................................................................... …..… .40 
11A.  Short paid amounts recoverable without notice.– ..................... ……....40 
11B.  Limitation for issuing orders in certain cases.— ....................... ……....40 
11C.  Power of tax authorities to modify orders, etc........................... ……....41 
11D.  Best judgment Assessment. —  ................................................. ……....41 
11E.   Assessment of tax and recovery of tax not levied or short levied or    
erroneously refunded.-…………………………………………………42 
11F.      Failure to withhold sales tax.—…………………………………..……42 
11G.     Limitation for assessment.—………………………………….……….43 
12.        Omitted…..…………………………………………………………….43 
13.  Exemption.― ............................................................................ ……....43 
Chapter-III .............................................................................................. ……....45 
REGISTRATION ................................................................................... ………45 
14.  Registration. – ........................................................................... ……....45 
14A.  Repealed.– ................................................................................. ……....46 
14AB.  Discontinuance of gas and electricity connections. – ................ ……....46 
14AC.   Bar on operations of bank accounts.-.…………………………………46 
14AD.   Bar on transfer of immovable property.-………………………………47 
14AE.   Other measures for non-registration.-.…………………………………48 
15.  Omitted ...................................................................................... ……....49 
16.  Omitted ...................................................................................... ..……..49 
17.  Omitted ...................................................................................... ..……..49 
Sales Tax Act, 1990 
 
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18.  Omitted ...................................................................................... …..…..49 
19.  Omitted ...................................................................................... ..……..49 
20.  Omitted ...................................................................................... ............49 
21.  De-registration, blacklisting and suspension of registration…………..49 
21A. Active taxpayers list .................................................................. ………50 
Chapter-IV .............................................................................................. ……....50 
BOOK KEEPING AND INVOICING REQUIREMENTS ................... ……....50 
22.  Records. ..................................................................................... ……....50 
23.  Tax Invoices.- ............................................................................ ……....52 
24.  Retention of record and documents for six years.- .................... ……....54 
25.  Audit of sales tax affairs.- ......................................................... ……....54 
25A.  Drawing of samples.- ................................................................ ……....56 
25AA. Transaction between Associates ................................................ ……....56 
Chapter-V ............................................................................................... ………57 
RETURNS .............................................................................................. ……....57 
26.  Return. ....................................................................................... ……....57 
26A.  Omitted ...................................................................................... ……....59 
26AA. Omitted ....................................................................................... ……....59 
26AB. Extension of time for furnishing returns ..................................... ……....59 
27.  Special Returns. ......................................................................... ……....60 
28.  Final Return. .............................................................................. ……....60 
29.  Return deemed to have been made. ........................................... ……....60 
Chapter-VI .............................................................................................. ……....61 
APPOINTMENT OF OFFICER OF SALES TAX & THEIR POWERS………61 
30.  Appointment of Authorities ....................................................... ……....61 
30A.  Directorate General, (Intelligence and Investigation) Inland 
Revenue…………….. ............................................................... .......….62 
30AB. Tax Fraud Investigation Wing Inland Revenue …………….……….…62 
30B.  Directorate General Internal Audit. ........................................... ……....63 
30C.  Inland Revenue Services Academy. .......................................... ……....64 
30CA.  Directorate General of Digital Initiatives……………………….……...64 
30D.  Directorate General of Valuation. ............................................. ………64 
30DD. Directorate of Post Clearance Audit . ......................................... ………64 
30DDD. Directorate General of Input Output Co-efficient Organization……...64 
30DDDA.Directorate-General of law……………………………………….….64 
30E.  Powers and Functions of Directorate etc. .................................. ………64 
31.  Powers. ...................................................................................... ………64 
32.  Delegation of powers ................................................................. ………65 
32A.  Audit by Special Audit Panels  .................................................. ………65 
32AA.  Omitted. ..................................................................................... ………66 
32B.     Appointment of experts and auditors…………………………………..66      
Chapter-VII ............................................................................................ ………67 
OFFENCES, PENALTES AND PUNISHMENT .................................. ………67 
33.  Offences,Penalties and Punishment........................................... ………67 
33A.  Omitted ...................................................................................... ………78 
34.  Default Surcharge. ..................................................................... ………79 
34A.  Exemption from penalty and default surcharge. ........................ ………80 
Sales Tax Act, 1990 
 
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35.  Omitted. ..................................................................................... ………80 
35A.  Omitted. ..................................................................................... ………80 
36.  Omitted. ..................................................................................... ………80 
37.  Power to summon persons to give evidence and produce documents in 
inquiries under the Act. ............................................................. ………80 
37A.  Power to inquire,investigate offences warranting prosecution under this 
Act and Arrest of a person ......................................................... ………81 
37B.  Procedure to be followed on arrest of a person. ........................ ………83 
37C.  Special Judges ........................................................................... ………86 
37D. Cognizance of Offences by Special Judges ............................... ………86 
37E. Special Judge, etc. to have exclusive Jurisdiction ..................... ………87 
37F.   Provisions of Code of Criminal Procedure, 1898, to apply……............87 
37G. Transfer of cases ........................................................................ ………87 
37H.  Place of Sittings ......................................................................... ………88 
37I.  Appeal to the High Court .......................................................... ………88 
38.  Authorised officers to have access to premises, stocks, accounts and 
records ....................................................................................... ………88 
38A.  Power to call for information. ................................................... ………89 
38B.   Obligation to produce documents and provide information…………...89 
39.  Omitted ...................................................................................... ………90 
40.  Searches under warrant ............................................................. ………90 
40A.  Omitted. ..................................................................................... ………91 
40B.  Posting of Inland Revenue Officer. ........................................... ………91 
40C.     Monitoring of Tracking by Electronic or other means............................91 
40D.     Provisions relating to goods supplied from tax-exempt areas.-..............91 
40E.     Licensing of brand name.-.......................................................................92 
41.  Omitted… .................................................................................. …….. .92 
42.  Omitted. ..................................................................................... ………92 
Chapter-VIII ........................................................................................... ………93 
APPEALS ............................................................................................... ………93 
43.  Omitted. ..................................................................................... ………93 
43A.  Omitted………………………....……………………………..……….93 
44.  Omitted. ..................................................................................... …..…..93 
45.  Omitted. ..................................................................................... ……....93 
45A. Power of the Board and Commissioner to call for records………..…...93 
45B.  Appeals. ..................................................................................... ..……..94 
46.  Appeals to Appellate Tribunal................................................... ………96 
47.  Reference to the High Court.................................................………..…96 
47A.  Alternative dispute resolution. .................................................. ……....97 
47AB. Saving. .............................................................................. ......................97 
Chapter-IX .............................................................................................. ……....98 
RECOVERY OF ARREARS ................................................................. ……....98 
48.  Recovery of arrears of tax.- ....................................................... ……....98 
Chapter-X ............................................................................................... ……....99 
MISCELLANEOUS ............................................................................... ..……..99 
49.  Sales of taxable activity or transfer of ownership.-- .................. ..……..99 
49A.  Liquidators. ............................................................................... ……..100 
Sales Tax Act, 1990 
 
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50.  Power to make rules. ................................................................. ……..101 
50A.  Computerized system. ............................................................... ……..101 
50B.  Electronic scrutiny and intimation……………………………............102 
51.  Bar of suits, prosecution and other legal proceedings. .............. ……..102 
52.  Appearance by authorised representative. ................................. ……..102 
52A.  e-intermediaries to be appointed. .............................................. ……..103 
53.  Estate of deceased person. ......................................................... ……..103 
54.  Estate in bankruptcy. ................................................................. ……..103 
55.  Removal of difficulties. ............................................................. ……..104 
56.  Service of order, decisions, etc. ................................................. ……..104 
56A. Agreement for the exchange of information………………………….105 
56AB. Real time access to information and databases……………………….106 
56B. Disclosure of information by a public servant ..................... …….. ….107 
56C.  Prize schemes to promote tax culture…………………………………107 
57.  Rectification of Mistake ............................................................ ……..107 
58.  Liability for payment of tax in the case of private companies or business 
enterprises .................................................................................. ……..108 
58A.  Representatives. ......................................................................... ……..108 
58B.  Liability and obligations of representatives. ............................. ……..110 
58C.      Inspection of audit firm………………………………………………111 
59.  Tax paid on stocks acquired before registration ........................ ……..111 
60.  Powers to deliver certain goods without payment of tax........... ……..112 
61.  Repayment of tax in certain cases. ............................................ ……..112 
61A.  Repayment of tax to persons registered in Azad Jammu and Kashmir.
 ................................................................................................... ……..112 
62.  Drawback allowable on re-export.-- .......................................... ……..112 
63.  Drawback on goods taken in to use between importation and re -
exportation. ................................................................................ ……..113 
64.  Power to declare what goods are identifiable and to prohibit drawback in 
case of specified foreign territory .............................................. ……..113 
65.  Exemption of tax not levied or short levied as a result of general practice
 ................................................................................................... ……..113 
66.  Refund to be claimed within one year. ...................................... ……..114 
67.  Delayed Refund. ........................................................................ ……..114 
67A.  Payment of refund through sales tax refund bonds.. ................. ……..115 
68.  Liability of the registered person for the acts of his agent. ....... ……..116 
69.  Issuance of duplicate of sales tax documents. ........................... ……..116 
70.  Computation of limitation period. ............................................. ……..116 
71.  Special procedure. ..................................................................... ……..116 
72.  Officers of Sales Tax to follow Board's orders, etc. .................. ……..117 
72A. Reference to the authorities .................................................. ………...117 
72B. Selection of audit by the Board ............................................ ………...117 
72C. Reward to Inland Revenue Officers and Officials................ ………...118 
72D. Reward to whistleblowers .................................................... ………...118 
73.  Certain transactions not admissible. .......................................... ……..118 
74.  Condonation of time-limit. ........................................................ ……..120 
74A.  Validation. ................................................................................. ……..121 
Sales Tax Act, 1990 
 
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75.  Application of the provisions of Act IV of 1969 to Sales Tax……….121 
76.  Fee and service charges. ............................................................ ……..121 
77.  Uniform……………. ........................................................... …….…..122 
SCHEDULES .................................................................................... ………...123 
THE FIRST SCHEDULE (omitted)…. .................................................. ……..123 
THE SECOND SCHEDULE (omitted) .................................................. ……..123 
THE THIRD SCHEDULE ..................................................................... ……..123 
THE FOURTH SCHEDULE (omitted) .................................................. ……..126 
THE FIFTH SCHEDULE ...................................................................... ……..127 
THE SIXTH SCHEDULE ...................................................................... ……..131 
THE SEVENTH SCHEDULE (omitted) .......................................... ………...185 
THE EIGHT SCHEDULE ................................................................ ………...185 
THE NINTH SCHEDULE ................................................................ ………...196  
THE TENTH SCHEDULE ............................................................... ………...198 
THE ELEVENTH SCHEDULE ........................................................ ………...200 
THE TWELFTH SCHEDULE……………......................................................205 
THE THIRTEENTH SCHEDULE .................................................... ………...207 
  
Sales Tax Act, 1990 
 
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The 
 Sales Tax Act, 1990 
 
1[Act No. III of 1951 as Amended by Act VII of 1990] 
 
An Act to consolidate and amend the law relating to the levy of a tax on the  
sale 2[, importation, exportation, production, manufacture  
or consumption] of goods 
   
 WHEREAS it is expedient to consolidate and amend the law relating to the 
levy of a tax on the sale 3[, importation, exportation, Production, manufacture or 
consumption] of goods; 
  
 It is hereby enacted as follows:- 
 
4[Chapter-I 
 
PRELIMINARY 
 
1. Short title, extent and commencement.― (1) This Act may be 
called the Sales Tax 5[...] Act, 1990. 
 
 (2) It extends to the whole of Pakistan. 
 
 6[(3) It shall come into force on such date as the Federal Government may, 
by notification in the official Gazette, appoint.] 
 
 7[2.  Definitions.― In this Act, unless there is anything repugnant in the 
subject or context,-- 
 
 8[“(1) “abettor” means a person who intentionally abets or connives in tax 
fraud as defined in clause (37) of section 2 or in the commission of any offence 
warranting prosecution under this Act, and includes a person who,– 
 
(a) prepares, or causes to be prepared with authorization of the registered 
person, invoices for false claim of input tax adjustment; or 
 
                                           
1 For Statements of Objects and Reasons see Gazette of Pakistan, dated the 30 th March 1951, Pt. V. 
pp 36 and 37. 
2 Substituted for the words “or consumption of goods” by the Finance Act, 1960. 
3 Substituted for the words “or consumption of goods” by the Finance Act, 1960. 
4 Chapter I to X substituted for Chapters I to XVI by the Finance Act, 1990. 
5 Brackets and word “(Amendment)” omitted by the Finance Act, 1991. 
6 Came into force by Notification No. S.R.O. 1100(I)/90, dated 28 -10-1990 w.e.f. 1st November, 
1990. 
7 Section 2 Substituted by the Finance Act, 1996. 
8 Clause (1) substituted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
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(b) allows use of bank account held or operated by him for abetting tax 
fraud or other offence warranting prosecution under this Act or 
unauthorizedly or illegally maintains or operates business bank account 
in other registered person’s name.”; 
 
 9(1A) “active taxpayer” means a registered person who does not fall in 
any of the following categories, namely:- 
 
 (a) who is blacklisted or whose registration is suspended 10[***] in terms 
of section 21; 
 
 (b)  fails to file the return under section 26 by the due date for two 
consecutive tax periods; 
 
 (c) who fails to file an Income Tax return under section 114 or statement 
under section 115, of the Income Tax Ordinance, 2001(XLIX of 
2001), by the due date; and- 
  (d) who fails to file 11[quarterly] or an annual   withholding   tax 
statement under section 165 of the Income Tax Ordinance, 2001; 
 
 (1B) “Appellate Tribunal” means the Appellate Tribunal Inland Revenue 
established under section 130 of the Income Tax Ordinance, 2001 (XLIX of 
2001);] 
 
 (2) “appropriate officer ” means an 12[officer of Inland Revenue] 
authorised by the Board by notification in the official Gazette to perform certain 
functions under this Act; 
 
 13[(2A) “arrears”, in relation to a person, means, on any day, the sales tax 
due and payable by the person under this Act before that day but which has not yet 
been paid; ] 
 
 14[(3) “associates or associated persons” shall have the same meaning as 
defined in section 85 of the Income Tax Ordinance, 2001(XLIX of 2001);] 
 
                                           
9 The existing clause (1) and (1A) renumbered as clause (1A) and (1B), respectively by Finance Act,2025. 
10 The words “or is blocked” omitted by Finance Act, 2020. 
11 The word substituted by Finance Act, 2020. 
12 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was 
made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 
6, 2010 published in the Gazette of Pakistan Extraordinar y part I at pages 23 to 53 and this amendment was 
made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published 
in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
13 Clause (2A) substituted by Finance Act, 2008. Earlier it was inserted by Tax Laws (Amendments) Ordinance, 
1999. Originally it was inserted by Finance Act, 1991. 
14 Clause (3) substituted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 9   
 
 15[(3A) “association of persons” includes a firm, a Hindu undivided family, 
any artificial juridical person and anybody of persons formed under a foreign law, 
but does not include a company;] 
 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;] 
 
 17[(4) “Board” shall have the same meaning as defined under clause (8) 
of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001);] 
  
18[“(4A) “Cargo Tracking System” means a digital system notified 
by the Board for electronic monitoring and tracking of goods transported within or 
across the territory of Pakistan, for the purpose of tax enforcement, compliance 
and prevention of tax evasion;”;] 
 
19[(4AA)] “Chief Commissioner” means a person appointed as the 
chief Commissioner Inland Revenue under section 30;] 
 
  [(4AAA)] “Commissioner (Appeals)” means Commissioner of 
Inland Revenue (Appeals) appointed under section 30;] 
 
 20[(5) “Commissioner” means the Commissioner of Inland Revenue 
appointed under section 30;] 
 
 21[(5A) “common taxpayer identification number ” means the 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; 
 
                                           
15 Clause (3A) inserted by Finance Act, 2008.  
16 Clause (3A) re-numbered as (3AA). Earlier it was inserted by Finance Act, 2004. 
17 Clause (4) substituted by Finance Act, 2024. Earlier it was substituted by Finance Act, 2008.  
18 Clause (4A) inserted by Finance Act, 2025. 
19 The existing clause (4A) and (4AA) renumbered as clause (4AA) and (4AAA), respectively by Finance Act,2025. Earlier Clause (4A) inserted by 
Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. 
III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment was made 
20 Clause (5) inserted by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated 
as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment 
was made Through Finance (Amendment) Ordinance, 2009, promulgat ed 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. 
Sales Tax Act, 1990 
 
 10   
 
 (e) a trust, a co-operative society or a finance society or any other society 
established or constituted by or under any law for the time being in 
force; or 
 
 (f) a foreign association, whether incorporated or not, which the Board 
has, by general  or special order, declared to be a company for the 
purposes of the Income Tax Ordinance 2001 (XLIX of 2001); 
 
23[(5AAA)] “computerized system ” means any comprehensive information 
technology system to be used by the Board or any other office as may be notified 
by the Board, for carrying out the purposes of this Act;] 
 
 24[(5AB) “cottage industry ” means a manufacturing concern, which fulfils 
each of following conditions, namely:− 
 
 (a) does not have an industrial gas or electricity connection; 
 
 (b) is located in a residential area; 
 
 (c) does not have a total labour force of more than ten workers; and  
 
 (d) annual turnover from all supplies does not exceed 25[eight] million 
rupees;] 
 
26[(5ABA) “courier” means any entity engaged in the delivery of goods and 
collection of cash on behalf of a seller including logistic and ride -hailing 
services;”;] 
 
26[(5AC)“CREST” means the computerized program for analyzing and 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;] 
 
 9[(6B) “default surcharge ” means the default surcharge levied under 
section 34;] 
 
                                           
23 Clause (5AA) re-numbered as (5AAA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006. 
24 Clause (5AB) substituted by Finance Act, 2019. 
25 Word “eight” substituted by Finance (Supplementary) Act, 2022.  
26 Clause (5ABA) inserted by Finance Act, 2025. 
26 CREST 5AC inserted by Finance Act, 2013. 
27 Clause (6A) inserted by Tax Laws (Amendments) Ordinance, 1999. 
9 Clause (6B) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2005. 
Sales Tax Act, 1990 
 
 11   
 
 (7) “distributor” means a person appointed by a manufacturer, importer 
or any other person for a specified area to purchase goods from him for further 
supply and includes a person who in addition to being a distributor is also engaged 
in supply of goods as a wholesaler or a retailer; 
 (8) “document” includes any electronic data, computer programmes, 
computer tapes, computer disks, micro-films or any other medium for the storage 
of such data; 
 
 (9) “due date” in relation to the furnishing of a return 10[under section 
26], 11[ 12[...] 13[....] means the 14[15th] day of the month following the end of the tax 
period, or such other date as the 15[Board] may, by notification in the official 
Gazette, specify 16[and different dates may be specified for furnishing of different 
parts or annexures of the return];  
 
 17[(9A)] “e-intermediary” means a person appointed as e-intermediary under 
section 52A for  filing of electronic returns and such other documents as may be 
prescribed by the Board from time to time, on behalf of a person registered under 
section 14;] 
 
 18[(9AA) ***] 
 
 19(9B) “e-bilty” means a digital transport document generated through the 
Cargo Tracking System as prescribed by the Board, to accompany goods during 
their movement.”; 
20(9C)  “e-commerce” means sale or purchase of goods conducted over 
computer networks by methods specifically designed for the purpose of receiving 
or placing of orders either through websites, mobile applications or online 
marketplace having digital ordering features by using mobile phones, automated 
computer-to-computer ordering system or any similar device;”; 
 
 
 (10) “establishment” means an undertaking, firm or compan y, whether 
incorporated or not, an association of persons or an individual; 
 
 (11)  “exempt supply” means a supply which is exempt from tax under 
section 13; 
 
                                           
10 The words and figure inserted by Finance Act, 1998. 
11 The words and figure inserted by Tax Laws Amendment Ordinance, 2000, dated 24th May, 2000. 
12 Comma and words etc. “, sub-section (6) of section 26A” omitted by Finance Act, 2004. 
13 The expression “and section 26AA omitted by Finance, Act, 2016. 
14 Substituted for “20th” by Finance Act, 1998 
15 Substituted for “Federal Government” by Finance Act, 2008 
16 Expression inserted through Finance Act, 2016. 
17 Clause (9A) inserted by Finance Act, 2006. Earlier clause (9A) was omitted by Finance Act, 2004. Originally it was inserted b y Tax Laws 
(Amendments) Ordinance, 2001.  
18 Clause (9AA) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001. 
19 Clause (9B) inserted by Finance Act, 2025 
20 Clause (9C) inserted by Finance Act, 2025 
Sales Tax Act, 1990 
 
 12   
 
 21[(11A) “FBR Refund Settlement Company 22[10a] Limited” means the 
company with this name as incorporated under the 23[Companies Act, 2017 (XIX 
of 2017)], for the purpose of settlement of sales tax and income tax refund claims 
including payment by way of issuing refund bonds under section 67A’;] 
 
 24[10(11B) “firm” means the relation between persons who have agreed to share 
the profits of a business carried on by all or any of them acting for all;] 
 
 (12) “goods” include 25[***] every kind of movable property other than 
actionable claims, money, stocks, shares and securities; 
 
26[“(12A) “green industry” in relation to the entry at serial number 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 spli tting 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 pr ocess or technology that has not earlier been used in 
Pakistan and is so approved by the Engineering Development Board; 
and 
 
(b) is approved by the Commissioner on an application made in the prescribed 
form and manner, accompanied by the prescribed documents a nd, such 
other documents as may be required by the Commissioner: 
 
  Provided that this definition shall be applicable from the 1st July, 2019 and 
onwards.”.]  
 
 
 (13) “importer” means any person who 27[ ... ] imports any goods into 
Pakistan; 
                                           
21 Existing clause re-numbered as clause (11B) and new clause (11A) inserted by Finance Supplementary (Second Amendment) Act, 2019 
22 The word (Pvt) omitted by Finance Act, 2019. 
23 Words substituted vide Finance Act, 2019 
24 Clause (11A) inserted by Finance Act, 2008. 
25 Expression omitted by Finance Act, 2023 
26 New clause 12A inserted through Tax Laws (Amendment) Act, 2020 dated 30-3-2020. 
27 Word “lawfully” omitted by Finance Act, 2008 
Sales Tax Act, 1990 
 
 13   
 
 
 28[(14) “input tax”, in relation to a registered person, means – 
  
 (a) tax levied under this Act on supply of goods to the person; 
 
 (b) tax levied under this Act on the import of goods by the person; 
 
 (c) in relation to goods or services acquired by the person, tax levied 
under the Federal Excise Act, 2005 in sales tax mode as a duty of 
excise on the manufacture or production of the goods, or the 
rendering or providing of the services; 29[30 ] 
 
 (d) 31[…….] 32[Provincial Sales Tax levied on services rendered or 
provided to the person 33[excluding those services as specified by the 
Board through notification in the official Gazette subject to such 
conditions, restrictions and limitations as mentioned therein]; and] 
 
 (e) levied under the Sales Tax Act, 1990 as adapted in the State of Azad 
Jammu and Kashmir, on the supply of goods received by the person;] 
 
 34[(14A) the expression “ KIBOR” means Karachi Inter -Bank Offered Rate 
prevalent on the first day of each quarter of the financial year;] 
 35[(15) “Local Inland Revenue Office” means the office of Superintendent 
of Inland Revenue or such other office as the Board may, by notification in the 
official Gazette, specify;] 
 
      36[“(15A) “licensed integrator” means any person licensed by the Board to 
provide electronic invoicing system for integration of registered persons in the 
prescribed manner;] 
 
 (16) “manufacture” or “produce” includes – 
 
 (a) any process in which an article singly or in combination with  other 
articles, materials, components, is either converted into another 
distinct article or product or is so changed, transformed or reshaped 
that it becomes capable of being put to use differently or distinctly 
and includes any process incidental or ancillary to the completion of 
a manufactured product; 
  
                                           
28 Clause (14) substituted by Finance Act, 2008. 
29 Word “and” added at the end of clause through Finance, Act, 2016. 
30 Word “and” omitted through Tax Laws (Amendment) Ordinance, 2016. 
31 Expression omitted through Finance, Act, 2016. 
32 Expression re-inserted through Tax Laws (Amendment) Ordinance, 2016 having affect from 01st day of July, 2016.. 
33 Expression inserted by Finance Act, 2024. 
34 Clause (14A) inserted by Finance Act, 2009. 
35 Clause (15) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinanc e, 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette 
of Pakistan Extraordinary Part I at pages 229 to 259. 
36 New clause inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 14   
 
 (b) process of printing, publishing, lithography and engraving; and 
 
 (c) process and operations of assembling, mixing, cutting, diluting, 
bottling, packaging, repacking or preparation of goods in any other 
manner; 
 
 (17) “manufacturer” or “ producer” means a person who engages, 
whether exclusively or not, in the production or manufacture of goods whether or 
not the raw material of which the goods are produced or manufactured are owned 
by him; and shall include –  
 
 (a) a person who by any process or operation assembles, mixes, cuts, 
dilutes, bottles, packages, repackages or prepares goods by any other 
manner; 
  
 (b) an assignee or trustee in bankruptcy, liquidator, executor, or curator 
or any manufacturer or producer and any person who disposes of his 
assets in any fiduciary capacity; and 
  
 (c) any person, firm or company which owns, holds, claims or uses any 
patent, proprietary, or other right to goods being manufactured, 
whether in his or its name, or on his or its behalf, as the case may be, 
whether or not such person, firm or company sells, distributes, 
consigns or otherwise disposes of the goods 37[:] 
 
38[Provided that for the purpose of refund under this Act, only such shall 
be treated as manufacturer-cum-exporter who owns or has his own manufacturing 
facility to manufacture or produce the goods exported or to be exported;] 
 
 39[(18) “Officer of Inland Revenue ” means an officer appointed under 
section 30;] 
 
 40[(18A) “online marketplace”  online marketplace” means online 
interfaces that facilitate, for a fee, the direct interaction between multiple buyers 
and multiple sellers via digital orders for supply of goods, with or without the 
platform taking economic ownership of the goods that are being sold;”; 
 
 (19) “open market price” means the consideration in money which that 
supply or a similar supply would generally fetch in an open market; 
 
 41[(20) “output tax”, in relation to a registered person, means –  
                                           
37 Substituted for the semi-colon by Finance Ordinance, 2000 
38 Proviso inserted by Finance Ordinance, 2000. 
39 Clause (18) substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance (Amendment) Ordinanc e, 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, published in the Gazette 
of Pakistan Extraordinary Part I at pages 229 to 259. 
40 Clause (18A) substituted by Finance Act, 2025. 
41 Clause (20) substituted by Finance Act, 2008. Earlier it was inserted by Finance Act, 2007.  
Sales Tax Act, 1990 
 
 15   
 
 
 (a) tax levied under this Act on a supply of goods, made by the person; 
 
 (b) tax levied under the Federal Excise Act, 2005 in sales tax mode as a 
duty of excise on the manufacture or production of the goods, or the 
rendering or providing of the services, by the person; 
 
 42[(c) sales tax levied on the services rendered or provided by the person 
under Islamabad Capital Territory (Tax on Services) Ordinance, 
2001 (XLII of 2001);] 
 
43(20A) “payment intermediary” means a banking company, any financial 
institution including a licensed foreign ex change company or payment gateway 
that facilitate the transfer of funds or payment instructions between two or more 
parties to enable, process, route, or settle payments with respect to goods in a 
financial transaction, without being the ultimate source or  recipient of the 
payment;”; 
 
 
 44[(21) “person” means,– 
 
 (a) an individual; 
 
 (b) a company or association of persons incorporated, formed, organized 
or established in Pakistan or elsewhere; 
 
 (c) the Federal Government; 
 
 (d) a Provincial Government; 
 
 (e) a local authority in Pakistan; or 
 
 (f) a foreign government, a political subdivision of a foreign 
government, or public international organization;] 
 
 (22)  “prescribed” means prescribed by rules made under this Act; 
 
 45[(22A) “Provincial sales tax ” means tax levied under, Provincial laws or 
laws relating to Islamabad Capital Territory, which are declared by the Federal 
Government, through notification in the official Gazette to be Provincial Sales Tax 
for the purpose of input tax;] 
 
                                           
42 Clause (c) substituted by Finance Act, 2020. 
43 Clause (20A) inserted by Finance Act, 2025. 
44 Clause (21) substituted by Finance Act, 2008. 
45 Clause (22A) inserted by Finance Act, 2008. 
Sales Tax Act, 1990 
 
 16   
 
 (23) “registered office” means the office or other place of business 
specified by the registered person in the application made by him for registration 
under this Act or through any subsequent application to the 46[Commissioner]; 
 
 (24) “registration number” means the number allocated to the registered 
person for the purpose of this Act; 
 
 47[(25) “registered person” means a person who is registered or is liable to 
be registered under this Act: 
 
 Provided that a person liable to be registered but not registered under this 
Act 48[...] shall not be entitled to any benefit available to a registered person under 
any of the provisions of this Act or the rules made thereunder;] 
 
 49[(26 )  ***] 
 
  (27) “retail price”, with reference to the Third Schedule, means the price 
fixed by the manufacturer 50[or importer, in case of imported goods] 51[...], 
inclusive of all 52[duties], charges and taxes (other than sales tax 53[...]) at which 
any particular brand or variety of any article 54[is] sold to the general body of 
consumers or, if more than one such price is so fixed for the same brand or variety, 
the highest of such price 55[:].  
 
 56[Provided that the Board may through a general order specify zones or 
areas for the purpose of determinatio n of highest retail price for any brand or 
variety of goods 57[:] 
 
 Provided further that the reduction in price on account of chilling charges or 
any other similar charges in case of aerated water, beverages, mineral water, or 
fruit juices shall not be more than five percent of the price inclusive of sales tax, 
federal excise duty and all taxes other than income tax on which such goods are 
actually sold to the general body of consumers: 
 
 Provided also that, where the Board deems it necessary it may, by 
notification in the official gazette, fix the retail price of goods specified in the third 
schedule: 
 
                                           
46 The word “Collector” was substituted for “Commissioner” by Finance (Amendment) ordinance, 2010 promulgated as Ordinance No. I II 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 P akistan 
Extraordinary part I at pages 229 to 259. 
47 Clause (25) substituted by Finance Ordinance, 2002. 
48 Words “shall remain liable to further tax under sub-section (1A) of section 3 and” omitted by Finance Act, 2004. 
49 Clause (26) omitted by Finance Ordinance, 2002. 
50 The expression inserted vide Finance Act, 2019. 
51 Words “or the importer” omitted by Finance Act, 2005. Earlier these were inserted by Finance Act, 2003. 
52 Words and comma inserted by Finance Act, 2007. 
53 Words “and octroi” omitted by Finance Act, 1998. 
54 for the words “should be”, the word “is” substituted by Finance Act,2025; 
55 The “semicolon” has been substituted by” colon” in Finance Act, 2014 
56 Inserted by Finance Act 2014. 
57 For Full stop at the end a colon is substituted and new provisos are added by Finance Act, 2025.  
Sales Tax Act, 1990 
 
 17   
 
 Provided further also that, in case of imported goods specified in the Third 
Schedule, the retail price shall not be less than one hundred thirty percent  of the 
value determined under section 25 of the Customs Act, 1969 (IV of 1969), 
including the amount of customs duties and federal excise duty levied thereon. 
 
 (28) “retailer” means a person 58[***] supplying goods to general public 
for the purpose of consumption 59[:]. 
 
 60[Provided that any person, who combines the business of import and retail 
or manufacture or production with retail, shall notify and advertise wholesale 
prices and retail prices separately, and declare the address of retail outlets 61[***].] 
 
 62[(28A) ***] 
 
 (29) “return” means any return required to be furnished under Chapter-V 
of this Act; 
 
 63[(29A) “sales tax” means – – 
 (a) the tax, additional tax, or default surcharge levied under this Act; 
 
 (b) a fine, penalty or fee imposed or charged under this Act 64[excluding 
fee and service charges imposed and collected under section 76]; and 
 
 (c) any other sum payable under the provisions of this Act or the rules 
made thereunder;] 
 
 65[(29AA) “sales tax account” means an account representing the double entry 
recording of sales tax transactions in the books of account;] 
 
 (30) “Schedule” means a Schedule appended to this Act; 
 
 (31) “similar supply ”, in relation to the open market price of goods, 
means any other supply of goods which closely or substantially 66[resembles] the 
characteristics, quantity, components and materials of the aforementioned goods; 
 
 67[(31A) “special audit” means an audit conducted under section 32A;] 
 
                                           
58 Words “not being a manufacturer or producer or an importer” omitted by Finance Act, 2003, after omission the commas become superfluous. Earlier 
commas and words were inserted by Finance Act, 1998. 
59 Substituted for the semi-colon by Finance Act, 2003. 
60 Proviso inserted by Finance Act, 2003. 
61 The comma, words and figures “, and his total turnover per annum shall be taken into account for the purposes of registration  under section 14” 
omitted by Finance Act, 2015. 
62 Clause (28A) omitted by Finance Act, 2008. Earlier it was inserted by Finance Act, 1997. 
63 Clause (29A) inserted by Finance Act, 2008.   
64 Words inserted by Finance Act, 2022. 
65 Clause (29A) renumbered as (29AA) by Finance Act, 2008. Earlier it was inserted by Finance Act, 2006. 
66 Substituted for “resemble” by Finance Act, 2008. 
67 Clause (31A) inserted by Finance Act, 1998. 
Sales Tax Act, 1990 
 
 18   
 
 (32) “Special Judge” means the Special Judge appointed under Section 
68[37C of the act until such appointment is made by the Special Judge appointed 
under section] 185 of the Customs Act; 
 
 69[(33) “supply” means a sale or other transfer of the right to dispose of 
goods as owner, including such sale or transfer under a hire purchase agreement, 
and also includes – 
 
 (a) putting to private, business or non -business use of goods produced 
or manufactured in the course of taxable activity for purposes other 
than those of making a taxable supply; 
 
 (b) auction or disposal of goods to satisfy a debt owed by a person; 
70[***]  
 (c) possession of taxable goods held immediately before a person ceases 
to be a registered person 71[; 72[***]] 
 
 73[(d) in case of manufacture of goods belonging to another person, the 
transfer or delivery of such goods to the owner or to a person nominated by him  
74[; and] 
 
 75[***] 
 
 Provided that the 76[Board, with the approval of the Federal Minister-in-
charge,] may, by notification in the official Gazette, specify such other transactions 
which shall or shall not constitute supply;] 
 
77[(33A) “supply chain” means the series of transactions between buyers 
and sellers from the stage of first purchase or import to the stage of final supply;] 
 
78[(34)] tax”, unless the context requires otherwise, means sales tax; ]
  
 
79[(35) “taxable activity”, means any economic activity carried on by a 
person whether or not for profit, and includes – – 
 
 (a) an activity carried on in the form of a business, trade or manufacture; 
 
                                           
68 Words etc. inserted by Finance Act, 2010 w.e.f. June 5, 2010. 
69 Clause (33) substituted by Finance Act, 2008. 
70 Word “and” omitted by Finance Act, 2015. 
71 Semi-colon and word “and” substituted for colon by Finance Act, 2015. Semi-colon and word “and” substituted for colon by Finance Act, 2015.  
72 Word “and” omitted by Finance Act, 2022. 
73 Clause (d) added by Finance Act, 2015. 
74 Semi colon and the word “and” substituted by Finance Act, 2022. 
75 Sub-clause (e) omitted by Finance Act, 2023 
76 The words “Federal Government” substituted with the expression vide Finance Act, 2019. 
77 Clause (33A) inserted by Finance Act, 2013. 
78 Clause (34) substituted by Finance Act, 2008. 
79 Clause (35) substituted by Finance Act, 2008. 
Sales Tax Act, 1990 
 
 19   
 
 (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); 
 
 80[(37) “tax fraud” means knowingly, intentionally, or dishonestly doing 
any act or abetting any action to cause loss of tax under this Act, including,- 
 
(a)  using or preparing false, forged, and fictitious documents, 
including returns, statements, annexures, and invoices; 
 
(b)  false claim of input tax credit based on fictitious transactions; 
 
(c)  issuance of any tax invoice without supply of goods; 
 
(d)  tampering with or destroying of any material evidence or 
documents required to be maintained under this Act or the rule s 
made thereunder; 
 
(e)  generating fake input through manipulation of return filing system 
of the Board and making fake entries in the sales tax returns or in 
the annexures;  
 
                                           
80 Clause (37) substituted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 20   
 
(f)  making fictitious compliance of section 73, including routing of 
payments back to the registered person, or for the benefit of the 
registered person, through a bank account held by a supplier or a 
purported supplier; 
 
(g)  suppression of supplies that are chargeable to tax under this Act; 
 
(h) making taxable supplies of goods without issuing any tax invoice; 
(i)  suppression and nonpayment of withholding tax in the prescribed 
manner beyond a period of three months from due date of payment 
of tax; 
 
(j)  acquisition, possession, transportation, disposal or in any way 
removing, de positing, keeping, concealing, supplying, or 
purchasing or in any other manner dealing with, any goods in 
respect of which there are reasons to believe that these are liable 
to confiscation under this Act or the rules made thereunder; or  
 
(k)  making of taxable supplies without getting registration under this 
Act.  
  
 81[(38)  ***] 
 
 (39) “taxable goods” means all goods other than those which have been 
exempted under section 13; 
 
 (40) “tax invoice” means a document required to be issued under section 
23; 
 
 (41) “taxable supply” means a supply of taxable goods made 82[...] 83[by 
an importer, manufacturer, wholesaler (including dealer), distributor or retailer] 
other than a supply of goods which is exempt under section 13 and includes a 
supply of goods chargeable to tax at the rate of zero per cent under section 4; 
 
 84[(42) ***] 
 
 (43) “tax period” means a period of one month or such other period as the 
85[Board, with the approval of the Federal Minister -in-charge,] may 86[, ]  by 
notification in the official Gazette, specify; 
 
                                           
81 Clause (38) omitted by Finance Act, 2004. 
82 The words “In Pakistan” omitted by Finance Act, 2003. 
83 The words and commas inserted by Finance Act, 1998. 
84 Clause (42) omitted by Finance Act, 1997. 
85 85 The words “Federal Government” substituted with the expression vide Finance Act, 2019. 
86 Substituted for semi-colon by Finance Act, 2008 
Sales Tax Act, 1990 
 
 21   
 
 87[“(43A) 88[“Tier-1 retailer” means a retailer falling in any one or more of 
the following categories, namely:-]  
 
(a) a retailer operating as a unit of a national or international chain of 
stores; 
 
(b) a retailer operating in an air -conditioned shopping mall, plaza or 
centre, excluding kiosks; 
 
(c) a retailer whose cumulative electricity bill during the immediately 
preceding twelve consecutive months exceeds Rupees 89[twelve] 
hundred thousand; 90[ ] 
 
(d) a wholesale r-cum-retailer, engaged in bulk import and supply of 
consumer goods on wholesale basis to the retailers as well as on retail 
basis to the general body of the consumers”;] 91[ ] 
 
 92[***] 
 
 93[(f) a retailer who has acquired point of sale for accepting payment 
through debit or credit cards from banking companies or any other 
digital payment service provider authorized by State Bank of 
Pakistan; 94[***] 
 
 95[(g) a retailer whose deductible withholding tax under sections 236G or 
236H of the Income Tax Ordinance, 2001(XLIX of 2001) during the 
immediately preceding twelve consecutive months has exceeded the 
threshold as may be specified by the Board through notification in 
the official Gazette; and 
  96[***] 
 
 97[(h) any other person or class of persons as prescribed by the Board.]  
 
 98[(44) “time of supply”, in relation to,– 
 
 (a) a supply of goods, other than under hire purchase agreement, means 
the time at which the goods are delivered or made available to  the 
recipient of the supply 99[or the time when any payment is received 
                                           
87 Clause (43A) inserted through Finance Act, 2017 
88 Expression substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 substituted expression read as under: 
 “Tier-1 retailers means”   
89 Word “six” substituted by “twelve” though Tax Laws (Amendment) Act, 2020, dated 30-3-2020 
90 The word “and” omitted vide Finance Act, 2019. 
91 The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 
92 Sub-clause (e) omitted by Finance Act, 2023 
93 New clause (f) inserted by Finance Act, 2021. 
94 Word “and” omitted by Finance (Supplementary) Act, 2022. 
95 New clause (g) inserted by Finance (Supplementary) Act, 2022. 
96 Sub-clause (ga) omitted by Finance Act, 2023 
97 Existing clause (f) re-numbered as clause (h) by Finance Act, 2021. 
98 Clause (44) (44 A) and (44 AA) substituted for clause (44) by Finance Act, 2008. 
99 Expression added by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 22   
 
by the supplier in respect of that supply, whichever is earlier ] 
100[****]; 
 
 (b) a supply of goods under a hire purchase agreement, means the time 
at which the agreement is entered into; and 
 
 (c) services, means the time at which the services are rendered or 
provided; 
 
 101[Provided that in respect of sub clause ( a) ,(b) or (c), where any part 
payment is received, –  
 
(i)  for the supply in a tax period, it shall be accounted for in the return 
for that tax period; and 
 
(ii) in respect of exempt supply, it shall be accounted for in the return for 
the tax period during which the exemption is withdrawn from such 
supply ;] 
 
 (44A) “trust” means an obligation annexed to the ownership of property 
and arising out of the confidence reposed in and accepted by the owner, or declared 
and accepted by the owner for the benefit of another, or of another and the owner, 
and includes a unit trust; 
 
 (44AA) “unit trust ” means any trust under which beneficial i nterests are 
divided into units such that the entitlements of the beneficiaries to income or 
capital are determined by the number of units held;] 
 
 102[(45) ***] 
 
 (46) “value of supply” means:-- 
 
 (a) in respect of a taxable supply, the consideration in money including 
all Federal and Provincial duties 103[and taxes, if any, which the 
supplier receives from the recipient for that supply but excluding the 
amount of tax: 
 
Provided that –  
 
 (i)  in case the consideration for a supply is in kind or is partly in 
kind and partly in money, the value of the supply shall mean 
the open market price of the supply excluding the amount of 
tax; 104[ ... ] 
                                           
100Words omitted by Finance Act, 2021.  
101 Proviso added by Finance Act, 2013. 
102 Clause (45) omitted by Finance Act, 2004. 
103 Words inserted by Finance Act, 1999. 
104 Words “and” omitted by Finance Ordinance, 2001. 
Sales Tax Act, 1990 
 
 23   
 
 
 (ii)  in case the supplier and recipient are associated persons and the 
supply is made for no consideration or for a consideration 
which is lower than the open market price, the value of supply 
shall mean the open market price of the supply excluding the 
amount of tax; 105[and] 
 
 106[(iii)  in case a taxable supply is made  to a consumer from general 
public on installment basis on a price inclusive of mark up or 
surcharge rendering it higher than open market price, the value 
of supply shall mean the open market price of the supply 
excluding the amount of tax.] 
 
 (b) in case of trade discounts, the discounted price excluding the amount 
of tax; provided the tax invoice shows the discounted price and the 
related tax and the discount allowed is in conformity with the normal 
business practices; 
 
 (c) in case where for any special nature of transaction it is difficult to 
ascertain the value of a supply, the open market price; 
 (d) in case of imported goods 107[excluding those as specified in the 
Third Schedule], the value determined under section 25 108[...] of the 
Customs Act, includin g the amount of customs -duties and 
109[federal] excise duty levied thereon; 110[...] 
 
 (e) in case where there is sufficient reason to believe that the value of a 
supply has not been correctly declared in the invoice, the value 
determined by the Valuation Committee comprising representatives 
of trade and the 111[Inland Revenue] constituted by the 
112[Commissioner] 113[;] 114[ ] 
 
 115[(f) in case of manufacture of goods belonging to another person, the 
actual consideration received by the manufacturer for the value 
addition carried out in relation to such goods;] 
 
                                           
105 Word inserted by Finance Ordinance, 2001. 
106 Sub-clause (iii) inserted by Finance Ordinance, 2001. 
107 The expression inserted vide Finance Act, 2019. 
108 Words etc. “or 25B” omitted by Finance Act, 2004. 
109 Word substituted by Finance Act, 2024. 
110 The word “ and” omitted by Finance Supplementary (Amendment) Act, 1997. Earlier the same amendment was made by Sales Tax (Second 
Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979. 
111  Substituted for “Sales Tax Department” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) 
ordinance 2010 promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraord inary Part I at  
pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated 
October 28, 2009, published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 
112  Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) ordinance 2010 
promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at  pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, 
published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 
113 Word etc. “; and” substituted fo r “colon” by Finance Supplementary (Amendment) Act, 1997. Earlier it was substituted by Sales Tax (Second 
Amendment) Ordinance, 1996, dated 2nd November, 1996; and again was made by the Sales Tax (Amendment) Ordinance, 1979.  
114 The word “and” omitted vide Finance Act, 2019. 
115 Sub clause (f) substituted by Finance Act, 2019. Earlier it was substituted by Sales Tax (Second Amendment) Ordinance, 1996, dated 2nd November, 
1996; and again was made by the Sales Tax (Amendment) Ordinance, 1997.  
Sales Tax Act, 1990 
 
 24   
 
 116[(g)]  in case of a taxable supply, with reference to retail tax, the price of 
taxable goods excluding the amount of retail tax, which a supplier 
will charge at the time of making taxable supply by him, or such other 
price as the Board may, by a notification in the official Gazette, 
specify.] 
 
 117[(h) in case of supply of electricity by an independent power producer 
118[or WAPDA], the amount received on account of energy purchase 
price only; and the amount received on account of capacity purchase 
price, energy purchase price premium, excess bonus, su pplemental 
charges etc. shall not be included in the value of supply; 119[***] 
  
(i)  in case of supply of electric power and gas by a distribution company, 
the total amount billed including price of electricity and natural gas, 
as the case may be, charges, rent s, commissions and all duties and 
taxes local, provincial and federal but excluding the amount of late 
payment surcharge and the amount of sales tax;  120[:] 
 Explanation.- It is clarified that the value of supply does not 
include the amount of subsidy provi ded by the federal government 
or provincial governments to the electricity 121[or natural gas 
including re-gasified liquefied natural gas] consumers and has never 
been chargeable to tax under the Act;] 
136[(j)  in case of registered person who is engaged in purchasing used 
vehicles from general public on which sales tax had already been 
paid at the time of import or manufacturing, and which are, later on, 
sold in the open market after making certain value addition, value of 
supply will be the difference between sale and purchase price of the 
said vehicle on the basis of the valuation method prescribed by the 
Board.] 
  
122[Provided] that, where the Board deems it necessary it may, by 
notification in the official Gazette, fix the value of any imported goods  123[, 
including those as specified in the Third Schedule,] or taxable supplies or class of 
supplies and for that purpose fix different values for different classes or description 
of same type of imported goods or supplies: 
 
Provided further that where the value at which import or supply is made is 
higher than the value fixed by the Board, the value of goods shall, unless otherwise 
directed by the Board, be the value at which the import or supply is made;] 
                                           
116 Sub-Clause (g) inserted by Finance Act, 1997. 
117 Clauses (h) and (i) added by Finance Act, 2019. 
118 The words inserted by Finance Act, 2020, shall be deemed to have been inserted with effect from 1st July, 2019. 
119 The word “and” omitted by Finance Act, 2020, the word “and” and “new clause j” inserted by Finance Act, 2020. 
120 For expression “and” expression “:” substituted and thereafter Explanation inserted by Finance Act, 2022. 
121 Expression inserted by Tax Laws (Second Amendment) Ordinance, 2022. 
122 Provisos substituted by Finance Act, 2006. 
123 Expression inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 25   
 
 
 124[(46A) “whistleblower” means whistleblower as defined i n section 72D of 
the Sales Tax Act, 1990;] 
 
 (47) “wholesaler” 125[includes a dealer and] means any person who 
carries on, whether regularly or otherwise, the business of buying and selling goods 
by wholesale or of supplying or distributing goods, directly or indirectly, by 
wholesale for cash or deferred payment or for commission or other valua ble 
consideration or stores such goods belonging to others as an agent for the purpose 
of sale; and includes 126[a person supplying taxable goods to 127[a person 128[who 
deducts income tax at source under the Income Tax Ordinance, 2001 (XLIX of 
2001)]] 129[...]; and 
 
 (48)  “zero-rated supply” means a taxable supply which is charged to tax 
at the rate of zero per cent under section 4.] 
 
Chapter-II 
 
SCOPE AND PAYMENT OF TAX 
 
 3.  Scope of tax.– (1) Subject to the provisions of this Act, there shall be 
charged, levied and paid a tax known as sales tax at the rate of 130[eighteen] per 
cent of the value of– 
 
 (a)   taxable supplies made 131[…] by a registered person in the course or 
furtherance of any 132[taxable activity] carried on by him; and 
 
 (b) goods imported into Pakistan, 133[irrespective of their final 
destination in territories of Pakistan]. 
 
  134[(1A) Subject to the provision of sub section (6) of section 8 or any 
notification issued thereunder, where taxable supplies are made to a person who 
has not obtained registration number 135[or he is not an active taxpayer], there shall 
be charged, levied and paid a further tax at the rate of  136[four] percent of the value 
In addition to the rate specified in sub sections (1), (1B), (2), (5), 137[(6) and section 
4] provided that the Federal Govt. may, by notification in the official Gazette, 
                                           
124 Clause (46A) added by Finance Act, 2015. 
125 Words inserted by Finance Act, 1997. 
126 The words, brackets and figures inserted by Finance Act, 1998. 
127 Substituted for “person deducting advance tax under sub-section (4) of section 50 of the Income Tax, 1979 (XXXI of 1979)” by Finance Act, 2004. 
128 Substituted for “whose income is not liable to tax under the Income Tax Ordinance, 2001 (XLIX of 2001) but ha s deducted income tax at source 
under section 153 of the said Ordinance” by Finance Act, 2006. 
129 Comma and words “, and a person who in addition to making retail supplies is engaged in wholesale business” omitted by Finance Act, 2008. 
130 Substituted for seventeen vide Finance (Supplementary) Act, 2023. 
131 Words “ in Pakistan” omitted by Finance Act, 2003 
132 Words substituted by Finance Act, 1996. 
133 Words inserted through Finance Act, 2017 
134 Sub section (1A) inserted by Finance Act, 2013. 
135 Words inserted by Finance Act, 2022. 
136 For the word “three” the word “four” substituted by Finance Act, 2023 
137 The expression inserted through Finance Act, 2017 
Sales Tax Act, 1990 
 
 26   
 
specify the taxable supplies in respect of which the further tax shall not be charged, 
levied and paid.] 
 
  138[(1B) On the goods specified in the Tenth Schedule, in lieu of levying 
and collecting tax under sub -section (1), the tax shall be levied and collected, in 
the mode and manner specified therein−  
 
 (a) on the production capacity of plants, machinery, undertaking, 
establishments or installation producing 139[or] manufacturing such 
goods; or  
 
 (b) on fixed basis, from any person who is in a position to collect such 
tax due to the nature of the business,  
 
and different rates may be so prescribed for different regions or areas.] 
   
140[(2)  Notwithstanding the provisions of sub-section (1): – 
 
          (a) taxable supplies 141[and import of goods]  specified in the Third 
Schedule shall be charged to tax at the rate of 142[eighteen] per cent 
of the retail price 143[or in case such supplies 144[or imports] are also 
specified in the Eighth Schedule, at the rates specified therein and 
the retail price thereof,] along with the amount of sales tax shall be 
legibly, prominently and indelibly printed or embossed by the 
manufacturer 145[, or the importer, in case of imported goods,]  on 
each article, packet, container, package, cover or label, as the case 
may be; 146[:]147[ ] 
 
   148[Provided that the Federal Government may, subject to such 
conditions and restrictions as it may impose, by notification in the 
official Gazette, declare that the tax on goods specified in the Third 
Schedule shall be collected and paid at such higher rate or rates on 
the retail price thereof, as may be specified in the said notification: 
and   
 
     149[Provided 150[further] that the 151[Board], may, by notification 
in the official Gazette, exclude any taxable supply 152[or import] from 
                                           
138 Clause (1B) substituted vide Finance Act, 2019. 
139 Word substituted by Finance Act, 2021. 
140 Sub section (2) substituted by Finance Act, 2001 
141 The expression inserted through Finance Act, 2019. 
142 Substituted for seventeen vide Finance (Supplementary) Act, 2023. 
143 The expression inserted through Finance Act, 2017 
144 The words “or imports” inserted vide Finance Act, 2019. 
145 The expression inserted through Finance Act, 2019. 
146 Substituted for “; and” by Finance Act, 2007. 
147 The word ‘; and” omitted by Finance Act, 2014. 
148 New proviso inserted by Finance (Supplementary) Act, 2023. 
149 Proviso inserted by Finance Act, 2007. 
150 Word inserted by Finance (Supplementary) Act, 2023. 
151 Word “Board” substituted by Finance (Supplementary) Act, 2022. 
152 The words “or imports” inserted through Finance Act, 2019. 
Sales Tax Act, 1990 
 
 27   
 
the said Schedule or include any taxable supply 153[or import]  
therein; 154[…] 
 
 (aa) 155[goods specified in the Eighth schedule shall be charged to tax at 
such rates and subject to such conditions and limitations as specified 
therein; and] 
 
 156[(b) the 157[Federal Government] may , subject to such conditions and 
restrictions as it may impose, by notification in the official Gazette, 
declare that in respect of any taxable goods, the tax shall be charged, 
collected and paid in such manner and at such higher or lower rate or 
rates as may be specified in the said notification.] 
 
 (3) The liability to pay the tax shall be,- 
 
 (a)  in the case of supply of goods158[…], of the person making the 
supply,  
 
 (b) in the case of goods imported into Pakistan, of the person importing 
the goods; 159and 
 
(c) in the case of supply of digitally ordered taxable goods by online 
market place, website and software application from within Pakistan 
during the course of e-commerce, the liability to collect and pay tax 
shall be of payment intermediary including a banking company, a 
financial institution, licensed exchange company or payment 
gateway in case the payment is made digitally and of the courier 
delivering the goods where those are supplied on Cash on Delivery 
(CoD) basis at the rates provided in the Eleventh Schedule.”; 
 
 
 160[(3A) Notwithstanding anything contained in clause (a) of sub-section (3), 
the 161[Board, with the approval of the Federal Minister -in-charge,] may, by a 
notification in the official Gazette, specify the goods in respect of which the 
liability to pay tax shall be of the person receiving the supply.] 
 
 162[(3B) Notwithstanding anything contained in sub section (1) and (3), sales 
tax on the import and supply of the goods specified in the Ninth Schedule to this 
Act shall be charged, collected and paid at the rates, in the manner, at the time, and 
subject to the pro cedure and conditions as specified therein or as may be 
                                           
153 The words “or imports” inserted through Finance Act, 2019. 
154 Word “and” omitted by Finance Bill, 2014. 
155 Inserted by Finance Act, 2014 
156 Clause (b) substituted by Finance Act, 2015. 
157 Words “Federal Government” substituted by Finance Act, 2018. 
158 Words “in Pakistan” omitted by Finance Act, 2003. 
159 in sub-section (3), in clause (a) the word “and”, occurring at the end is omitted and in clause (b) for the full stop at the end, the semi colon and the 
word “and” is substituted and thereafter the new clause (c) is inserted by Finance Act, 2025 
160 Sub-section 3A inserted by Finance Act, 1998. 
161 The expression inserted through Finance Act, 2019. 
162 Inserted by Finance Act 2014 
Sales Tax Act, 1990 
 
 28   
 
prescribed, and the liability to charge, collect and pay the tax shall be on the 
persons specified therein.] 
 
 163[(4) ***] 
 
 164[(5) The 165[Federal Government] may, in addition to the tax levied under 
sub-section (1) 166[…], 167[…]  sub-section (2) and sub-section (4), levy and collect 
168[“tax at such extra rate or amount”] not exceeding 169[eighteen] per cent of the 
value of such goods or class of goods and on such persons or class of persons, in 
such mode, manner and at time, and subject to such conditions and limitations as 
it may, by rules, prescribe.] 
 
 170[(6) The Federal Government or 171[the Board] may, in lieu of the tax 
under sub-section (1), by notification in the official Gazette, levy and collect such 
amount of tax as it may deem fit on any supplies or class of supplies or on any 
goods or class of goods and may also specify the mode, manner or time of payment 
of such amount of tax.  
 
 172[(7) The tax shall be withheld 11[***] at the rate as specified in the 
Eleventh Schedule, by any person or class of persons 173[being purchaser of goods 
or services 174[, other than the services liable to pay sales tax under a Provincial 
enactment,] as withholding agent for the purpose of dep ositing the same, in such 
manner and subject to such conditions or restrictions as the Board may prescribe 
in this behalf through a notification in the official Gazette 175[:] 
 
 176[omitted]  
 
177(7A) The tax withheld as provided in the Eleventh Schedule by the 
payment intermediary or the courier, as the case may be, shall be final 
discharge of tax liability in respect of taxable supplies of digitally 
ordered goods by; 
 
(i) cottage industry as defined in clause (5AB) of section 2 of this 
Act; and 
(ii) retailers other than tier-I retailers 
                                           
163 Sub section (4) omitted by Finance Act, 2008. 
164 Sub section (5) inserted by Finance Act, 1999. 
165 Words “Federal Government” substituted by Finance Act, 2018. 
166 Word etc. “and (1 A)” omitted by finance Act, 2004. 
167 Word etc. “clause (C) of” omitted by Finance Ordinance, 2002 
168 Words substituted by Finance Act, 2013. 
169 Substituted for seventeen vide Finance (Supplementary) Act, 2023. 
170 Sub section (6) inserted by Finance Ordinance 2001 
171 Substituted for “Central Board of Revenue” by Finance Act, 2007 
172 Sub-section (7) substituted by Finance Act, 2019. 
173 The words omitted and the expression inserted by Finance Act, 2020. 
174 Expression inserted by Finance Act, 2022. 
175 Colon and proviso inserted by Finance Act, 2022. 
176 Proviso to sub-section (7) omitted by Finance Act, 2025 
177 Sub-section (7A) is inserted by Finance Act, 2025 
Sales Tax Act, 1990 
 
 29   
 
 178[(8) Notwithstanding anything contained in any law or notification made 
thereunder 179[, but subject to the provisions of clause (b) of sub -section (2)] in 
case of supply of natural gas to CNG stations, the Gas Transmission and 
Distribution Company shall charge sales tax from the CNG stations at the rate of 
180[eighteen] per cent of the value of supply to the CNG consumers, as notified by 
the Board from time to time, but excluding the amount of tax, as provided in clause 
(46) of section 2. 
 
 181[(9) Notwithstanding anything contained in sub -section (1), tax shall be 
charged from retailers, other than those falling in Tier -1, through their monthly 
electricity bills, at the rate of five percent where the monthly bill amount does not 
exceed rupees twenty thousand and at the rate of seven and half percent where the 
monthly bill amount exceeds the aforesaid amount and the electricity supplier shall 
deposit the amount so collected directly without adjusting against his input tax: 
 
 
 Provided that the tax under this sub -section shall be in addition to the tax 
payable on supply of electricity under sub-sections (1), (1A) and (5): 
 
 
 Provided further that the Commissioner of Inland Revenue having 
jurisdiction shall issue order to the electricity supplier regarding exclusion of a 
person who is either a Tier-1 retailer or not a retailer.] 
 
 182[(9A) Notwithstanding anything contained in this Act, Tier-1 retailers shall 
pay sales tax at the rate as applicable to the goods sold under relevant provisions 
of this Act or a notification issued there under: 
  
 183[****] 
  
 184[omitted] 
 
 185[(9AA) In respect of goods, specified in the Thirteenth Schedule, the 
minimum production for a month shall be determined on the basis of a single or 
more inputs as consumed in the production process as per criterion specified in the 
Thirteenth Schedule and if minimum production so determined exceeds the actual 
supplies for the month, such minimum production shall be treated as quantity 
supplied during the month a nd the liability to pay tax shall be discharged 
accordingly.] 
 
                                           
178  Sub-section 8 Inserted by Finance Act, 2014. 
179 Comma and words inserted by Finance Act, 2015. 
180 Substituted for seventeen vide Finance (Supplementary) Act, 2023. 
181 Sub-section 9 substituted by Tax Laws (Second Amendment) Ordinance, 2022 and shall be deemed to have been so substituted from the 01st day 
of July, 2022. 
182 Sub-section (9A) substituted through Finance Act, 2019. 
183First proviso omitted by Finance Act, 2021. 
184 Proviso to sub-section (9A)  omitted by Finance Act, 2025. 
185 New sub-section inserted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 30   
 
 186[(10) *** repealed] 
 
 187[(11)***]  
 
 188[(12) Notwithstanding anything contained in this Act, the Federal 
Government may, in lieu of or in addition to the tax under sub -section (9), by 
notification in the official Gazette, levy and collect such amount of tax at such rates 
and from such date as it may deem fit, from retailers, other than those falling in 
Tier-1, through their monthly electricity bill, and may also specify the mode, 
manner or time of payment of such tax: 
 
 
 Provided that different rates or amounts of tax may be specified for different 
persons or class of persons.] 
 
 
 189[3A. ***] 
 
 190[3AA. ***] 
 
 191[3AAA. ***] 
 
 192[3B.  Collection of excess sales tax etc. – (1) Any person who has  
collected or collects any tax or charge, whether under misapprehension of any 
provision of this Act or otherwise, which was not payable as tax or charge or which 
is in excess of the tax or charge actually payable and the incidence of which has 
been passed on to the consumer, shall pay the amount of tax or charge so collected 
to the Federal Government. 
 
 193[(2)  Notwithstanding anything contained in any law or judgement of a 
court, including the Supreme court and a High court, any amount payable to the 
Federal Government under sub-section (1) shall be deemed to be an arrear of tax 
or charge payable under this Act and shall be recoverable accordingly and any 
claim for refund in respect of such amount shall neither be admissible to the 
registered person nor payable to any court of law or to any person under direction 
of the court.] 
 
 (3) The burden of proof that the incidence of tax or charge referred to in 
sub-section (1) has been or has not been passed to the consumer shall be on the 
person collecting the tax or charge.] 
 
                                           
186 Section 10 repealed which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021. 
187 Sub-section (11) omitted by Finance Act, 2024. 
188 New sub-section (12) added by Tax Laws (Second Amendment) Ordinance, 2022. 
189 Section (3A) omitted by Finance Act, 2004. 
190 Section (3AA) omitted by Finance Act, 2008. 
191 Section (3AAA) omitted by Finance Act, 2002. 
192 Old section (3A) renumbered as (3B) by Finance Act, 1996. 
193 Sub-section (2) substituted by Finance Act, 2014. 
Sales Tax Act, 1990 
 
 31   
 
 4. Zero rating. –  Notwithstanding the provisions of section 3 
194[except those of sub-section (1A)], 195[...] the following goods shall be charged 
to tax at the rate of zero per cent:-- 
 
 [(a) goods exported, or the goods specified in the Fifth Schedule;] 
 
 (b)  supply of stores and provisions for consumption aboard a 
conveyance proceeding to a destination outside Pakistan as specified 
in section 24 of the Customs Act, 1969 (IV of 1969); 
 
 196[(c) such other goods, as the Federal Government may specify by 
notification in the official Gazette, whenever circumstances exist to 
take immediate action for the purposes of national security, natural 
disaster, national food security in emergency situations and 
implementation of bilateral and multilateral agreements:”; and] 
 
 197[(d) omitted.] 
 
   Provided that nothing in this section shall apply in respect of a supply 
of goods which –  
(i) are exported, but have been or are intended to be re-imported 
into Pakistan; or 
 
(ii) have been entered for export under Section 131 of the 
Customs Act, 1969 (IV of 1969), but are not exported 198[***] 
199[; or]  
 
(iii) 200[have been exported to a country specified by the Federal 
Government, by Notification in the official Gazette 201[:] 
 
  202[Provided further that the Federal Government may, by a 
notification in the official Gazette, restrict the amount of credit for input tax  
actually paid and claimed by a person making a zero -rated supply of goods 
otherwise chargeable to sales tax.] 
 
 5.  Change in the rate of tax.–  If there is a change in the rate of tax- 
 
 (a) a taxable supply made 203[***]  by a registered person shall be 
charged to tax at such rate as is in force at the time of supply; 
 
                                           
194 The expression inserted through Finance Act, 2017 
195 Words “a Supply of” omitted by Finance Act, 2004. 
196 Clause (c) substituted through Finance Act, 2019. 
197 Clause (d) omitted by Finance Act, 2019. 
198 Words omitted by Finance Act, 1999. 
199 Substituted for “full stop” by Finance Act, 1991. 
200 Added by Finance Act, 1991. 
201 Substituted for “full stop” by Finance Act, 1996.  
202 Proviso added by Finance Act, 1996. 
203 Words “in Pakistan” omitted by Finance Act, 2003 
Sales Tax Act, 1990 
 
 32   
 
 (b) imported goods shall be charged to“tax at such rate as” is in force,- 
 (i) in case the goods are entered for home consumption, on the date 
on a 9[goods declaration] is presented under section 79 of the 
Customs Act, 1969 (IV of 1969); 
 
 (ii) in case the goods are cleared from warehouse, on the date on 
which a 204[goods declaration] for clearance of such goods is 
presented under section 104 of the Customs Act , 1969 (IV of 
1969); 
 
Provided that where a 9[goods declaration] is presented in advance of the 
arrival of the conveyance by which the goods are imported, the tax shall be charged 
as is in force on the date on which the manifest of the conveyance is delivered: 
 
Provided further that if the tax is not paid within seven days of the of the 
205[goods declaration] 206[under section 104 of the Customs Act,] the tax shall be 
charged at the rate as is in force on the date on which tax is actually paid. 
 
6.  Time and manner of payment. – (1) The tax in respect of goods 
imported into Pakistan shall be charged and paid in the same manner and at the 
same time as if it were a duty of customs payable under the Customs Act, 1969 
207[and the provisions of the said Act 208[including section 31A thereof], shall, so 
far as they relate to collection, payment and enforcement 209[including recovery] 
of tax under this Act on such goods where no specific provision exists in this Act, 
apply,]. 
 
 210[(1A) Notwithstanding anything contained in any other law for the time 
being in force, including but not limited to the Protection of Economic Reforms 
Act, 1992 (XII of 1992), and notwithstanding any decision or judgment of any 
forum, authority or court whether passed, before or after the promulgation of the 
Finance Act, 1998 (III of 1998), the provisions of section 31 -A of the Customs 
Act, 1969 (IV of 1969), referred to in sub-section (1) shall be incorporated in and 
shall be deemed to have always been so incorp orated in this Act and no person 
shall be entitled to any exemption from or adjustment of or refund of tax on account 
of the absence of such a provision in this Act, or in consequence of any decision 
or judgment of any forum, authority or court passed on that ground or on the basis 
of the doctrine of promissory estoppel  or on account of any promise or 
commitment made or understanding given whether in writing or otherwise, by any 
government department or authority.] 
 
                                           
204 Substituted for “bill of entry” by Finance Act, 2005 
205 Substituted for “bill of entry” by Finance Act, 2005 
206 Words, figure and comma inserted by the Finance Act, 1996. 
207 The Words inserted in place of “IV of 1969” by Finance Act, 1996 
208 The words inserted by Finance Act, 1998. 
209 Words “including recovery” inserted by Finance Act, 2015. 
210 Sub Section (1A) inserted by Sales Tax (amendment) Ordinance, 2002 dated June 07, 2002 and shall be deemed to have always been so inserted. 
Sales Tax Act, 1990 
 
 33   
 
 (2) The tax in respect of taxable suppli es made 211[***] during a tax 
period shall be paid by the registered person 212[by the date as prescribed in this 
respect] 213[:] 
 
214[Provided that the Board may, by a notification in the Official Gazette, 
direct that the tax in respect of all or such classes of supplies (other than zero-rated 
supplies) of all or such taxable goods, as may be specified in the aforesaid 
notification, shall be charged, collected and paid in any other way, mode, manner 
or at time as may be specified therein.] 
 
 215[(3) The tax due on t axable supplies 216[***] shall be paid by any of the 
following modes, namely:- 
 
 (i) through deposit in a bank designated by the Board; and 
 
 (ii) through such other mode and manner as may be specified by the 
Board.] 
 
 217[4. ***] 
 
 218[(5) The Federal Government may, subject to such conditions, limitations 
and restrictions as it may impose, by notification in the official Gazette, allow 
payment of sales tax on installments basis by the Federal or Provincial 
Governments or any public sector organization on import or supply of any goods 
or class of goods: 
 
   Provided that such payment may be allowed from any previous date 
specified in the notification under this sub-section.] 
 
 7. Determination of tax liability. – (1) 219[Subject to the 
provisions of 220[section 8 and] 8B, for] the purpose of determining his tax liability 
in respect of taxable supplies made during a tax period, a registered person shall 
221[, subject to the provisions of section 73,] be entitled to deduct input tax 222[paid 
223[or payable 224[during the tax period for the purpose of taxable supplies made, 
or to be made, by him] from the output tax 225[excluding the amount of further tax 
                                           
211 Words “ in Pakistan” omitted by Finance Act, 2013 
212 Words substituted through Finance, Act, 2016. 
213 Substituted for full stop by Finance Act, 1997 
214 Proviso inserted  by Finance Act, 1997 
215 Sub Section III substituted by Finance Act, 1996. 
216Words “made in Pakistan” omitted by Finance Act, 2003.  
217 Sub Section 4 omitted by Finance Act, 1996. 
218 New sub-section (5) added by Finance Act, 2022. 
219 Substituted for the word “ for by Finance Act, 2007 
220 The word” section” substituted by the words and figure “section 8 and” in Finance Act 2014. 
221 Comma and word etc, inserted by Finance Ordinance, 2001 
222 Words inserted by Finance Act, 1996 
223 Words inserted by Finance Act, 2004. 
224 Words inserted by Finance Act, 1998. 
225 Inserted by Finance Act 2014 
Sales Tax Act, 1990 
 
 34   
 
under sub-section (1A) of section 3.] 226[ ] that is due from him in respect of that 
tax period and to make such other adjustments as are specified in Section 9 227[:] 
 
228[Provided that where a registered person did not deduct input tax within 
the relevant period, he may claim such tax in the return for any of the six 
succeeding tax periods.] 
 
 (2) A registered person shall not be entitled to deduct input tax from 
output tax unless,- 
 
 (i) in case of a claim for input tax in respect of a taxable supply made 
229[***], he holds a tax invoice 230[in his name and bearing his 
registration number] in res pect of such supply 231[, or in case of 
supply of electricity or gas, a bill bearing his registration number and 
the address where the connection is installed] 232[:]  
 
  Provided that from the date to be notified by the Board in this respect, 
in addition to above, if the supplier has not declared such supply in 
his return or he has not paid amount of tax due as indicated in his 
return; 
 
 (ii) 233[in case of goods imported into Pakistan, he holds bill of entry or 
goods declaration in his name and showing his sales tax registration 
number, duly cleared by the customs under section 79 234[, section 
81] or section 104 of the Customs Act, 1969 (IV of 1969);] 
 
 (iii)  235[in case of goods purchased in auction, he holds a treasury challan, 
236[in his name and bearing his registration number,] showing 
payment of sales tax;] 
 
 237[(iv) ***] 
  
 238[(3) Notwithstanding anything in sub-sections (1) and (2), 239[Board, with 
the approval of the Federal Minister-in-charge,] may, by a special order, subject to 
such conditions, limitation s or restrictions as may be specified therein allow a 
registered person to deduct input tax paid by him from the output tax determined 
or to be determined as due from him under this Act.] 
 
                                           
226 Words etc “ excluding the amount of tax” omitted by Finance Act, 2004 
227 Substituted for the full stop by Finance Act, 2003 
228 Proviso substituted by Finance Act, 2008. 
229 Words “in Pakistan” omitted by Finance Act, 2003. 
230 Words inserted by Finance Act, 2003. 
231 The expression substituted through Finance Act, 2019. 
232 A Colon substituted the semi colon & Proviso added through Finance, Act, 2016. 
233 Clause (ii) substituted by Finance Act, 2003. 
234 Expression “, section 81” inserted by Finance Act, 2015. 
235 Clause (iii) inserted by Finance Ordinance, 2002 
236 Comma and words inserted by Finance Act, 2004. 
237 Clause (iv) omitted by Finance Act, 1997. 
238 Sub Section (3) inserted by Finance Ordinance, 2002. 
239 The expression substituted by Finance Act, 2019. 
Sales Tax Act, 1990 
 
 35   
 
 240[(4) Notwithstanding anything contained in this Act or rules made there 
under, the 241[Federal Government] may, by notification in the official Gazette, 
subject to such conditions, limitations or restrictions as may be specified therein, 
allow a registered person  or class of persons to deduct such amount of input tax 
from the output tax as may be specified in the said notification.] 
 
 242[(5) Notwithstanding anything contained in this Act or the rules made 
thereunder, the Board, by notification in the official Gazet te, may impose 
restrictions on wastage of material on which input tax has been claimed in respect 
of the goods or class of goods.] 
 
 243[7A. Levy and collection of tax on specified goods on value addition. – 
244[(1) Notwithstanding anything contained in this Act or the rules made there 
under, the 10[Federal Government]  may specify, by notification in the official 
Gazette, that sales tax chargeable on the supply of goods of such description or 
class shall, with such limitations or restrictions as may be prescribed, be levied and 
collected on the difference between the value of supply for which the goods are 
acquired and the value of supply for which the goods, either in the same state or 
on further manufacture, are supplied.] 
 245[(2) Notwithstanding anything contained in this Act or the rules made 
thereunder, in respect of the goods or class of goods specified in the Twelfth 
Schedule, the minimum value addition tax, against the value added by the 
registered person, shall be payable, at the rate and by the registered persons or class 
of registered persons, specified therein, subject to the conditions, limitations, 
restrictions and procedure specified therein: 
 
 Provided that the Federal Government may, through a notification 
published in the official Gazette, amend any provision of the said Twelfth 
Schedule.] 
 
 246[8. Tax credit not allowed. – (1) Notwithstanding anything contained 
in this Act, a registered person shall n ot be entitled to reclaim or deduct input tax 
paid on –  
 
 247[(a) the goods 248[or services] used or to be used for any purpose other 
249[***] for taxable supplies made or to be made by him;] 
   
 (b)  any other goods or services which the 250[Federal Government] may, 
by a notification in the official Gazette, specify251[;252[***]] 
                                           
240 Sub Section (4) inserted by Finance Act, 2007.   
241 Words “Federal Government” substituted by Finance Act, 2018. 
242 New sub-section inserted by Finance Act, 2020. 
243  Section (7A) inserted by Finance Act, 2003. 
244 Renumbered by Finance Act, 2004 
245 Sub-section (2) substituted vide Finance Act, 2019.  
246 Section (8) substituted by Finance Act, 1996. 
247 Clause (a) substituted by Sales Tax (amendment) Ordinance, 2001 dated February 07, 2001. 
248 Words inserted by Finance Act, 2008. 
249 Words “for the manufacture of production of manufacture goods or,” omitted by Finance Act, 2007. 
250 Words “Federal Government” substituted by Finance Act, 2018. 
251 Substituted for full stop by Finance Act, 1999 
252  Word “and” omitted by Finance Act, 2004. 
Sales Tax Act, 1990 
 
 36   
 
 
 253[(c)]  254[***] the goods under 255[sub-section] (5) of section 3 256[:] 
  
 257[(ca) the goods 258[or services] in respect of which sales tax has not been 
deposited in the Government treasury by the respective supplier;] 
 
 259[(caa) purchases, in respect of which a discrepancy is indicated by CREST 
or input tax of which is not verifiable in the supply chain;] 
 260[(d) fake invoices; 261[***] 
 
 (e) purchases made by such registered person, in case he fails to furnish 
the information required by the Board through a notification issued 
under sub-section (5) of section 26 [;] 
  
 262[(f)  goods and services not related to the taxable supplies made by the 
registered person.] 
 
 263[(g)  goods and services acquir ed for personal or non -business 
consumption;] 
 
 264[(h)  goods used in, or permanently attached to, immoveable property, 
such as building and construction materials, paints, electrical and 
sanitary fittings, pipes, wires and cables, but excluding 265[pre-
fabricated buildings and] such goods acquired for sale or re -sale  or 
for direct use in the production or manufacture of taxable goods; 
266[***]] 
   
 267[(i)  vehicles falling in Chapter 87 of the First Schedule to the Customs 
Act, 1969 (IV of 1969), parts of such vehicles, electrical and gas 
appliances, furniture furnishings, office equipment (excluding 
electronic cash registers), but excluding such goods acquired for sale 
or re-sale] 268[;] 
 
 269[(j) services in respect of which input tax adjustment is barred under the 
respective provincial sales tax law; 
 
                                           
253 Clause (c) inserted by Finance Act, 1999. 
254 Word “on” omitted by Finance Act, 2004. 
255 Substituted for subsection (1A) and Finance Act, 2004. 
256 Substituted for the full stop by Finance Act, 2004.  
257 Clause (ca) inserted by Finance Act, 2006.  
258Words inserted by Finance Act, 2008. 
259 Clause (caa) inserted by Finance Act, 2013 
260 Clause (d) inserted by Finance Act, 2004. 
261 The word “and “omitted by Finance Act 2014. 
262 Inserted by Finance Act, 2014. 
263 Inserted by Finance Act, 2014. 
264 Inserted by Finance Act, 2014. 
265 Words inserted by Finance Act, 2015. 
266 Word “and” omitted by Finance Act, 2015. 
267 Inserted by Finance Act, 2014. 
268 Semi-colon substituted for full stop by Finance Act, 2015. 
269 Clauses (j), (k) and (l) added by the Finance Act, 2015. 
Sales Tax Act, 1990 
 
 37   
 
 (k) import or purchase of agricultural machinery or equipment subject to 
sales tax at the rate of 7% under Eighth Schedule to this Act;  
 
 (l) from the date to be notified by the Board, such goods and services 
which, at the time of filing of return by the buyer, have not been 
declared by the supplier in his return 270[or he has not paid amount of 
tax due as indicated in his return; and 
 
 271[(m) the input goods 272[or services] attributable to supplies made to un -
registered 273[distributor], on pro-rata basis, for which sale invoices 
do not bear the NIC number or NTN as the case may be, of the 
recipient as stipulated in section 23.] 
 
 (2) If a registered person deals in taxable and non -taxable supplies, he 
can reclaim only such proportion of the input tax as is attributable to taxable 
supplies in such manner as may be specified by the Board. 
 
 (3) No person other than a registered person shall make any deduction 
or reclaim input tax in respect of taxable supplies made or to be made by him. 
 
 274[(4) ***] 
 
 275[(5) Notwithstanding anything contained in any other law for the time 
being in force or any decision of any Court, for the purposes of this section, no 
input tax credit shall be allowed to the persons who paid fixed tax under any 
provisions of this Act as it existed at any time prior to the first day of December, 
1998.] 
 
 276[(6) Notwithstanding anything contained in any other law for the time 
being in force or any p rovision of this Act, 277[Board, with the approval of the 
Federal Minister-in-charge,] may, by notification in the official Gazette, specify 
any goods or class of goods which a registered person cannot supply to any person 
who is not registered 278[***] under this Act.] 
 
 279[(7) ***] 
 
 280[8A. Joint and several liability of registered persons in supply chain 
where tax unpaid. – Where a registered person receiving a taxable supply from 
another registered person is in the knowledge or has reasonable grounds to suspect 
that some or all of the tax payable in respect of that supply or any previous or 
                                           
270 Expression added through Finance Act, 2016. 
271 Clause (m) substituted through Finance Act, 2019. 
272 The words inserted by Finance Act, 2020. 
273 Word “person” substituted by Finance Act, 2022. 
274 Sub-Section (4) omitted by Finance Act, 1999. 
275 Sub-section (5) inserted by Finance Act, 1999. 
276 Sub-section (6) inserted by Sales Tax (Amendment) Ordinance, 2001 dated February 7, 2001. 
277 The expression substituted by Finance Act, 2019. 
278 Words “or enrolled” omitted by Finance Act, 2004. 
279 Sub-section (7) omitted by Finance Act, 2004. Earlier it was inserted by Sales Tax (Amendment) Ordinance, 2001, dated February 7, 2001. 
280 Section 8A inserted by Finance Act, 2006. 
Sales Tax Act, 1990 
 
 38   
 
subsequent supply of the goods supplied would go unpaid 281[, of which the burden 
to prove shall be on the department] such person as well as the person making the 
taxable supply shall be jointly and severally liable for payment of such unpaid 
amount of tax 282[:]] 
  
283[Provided that the Board may by notification in the official gazette, 
exempt any transaction or transactions from the provisions of this section.] 
 
284[8B. Adjustable input tax.– (1) Notwithstanding anything contained 
in this Act, in relation to a tax period, a registered person 285[***] shall not be 
allowed to adjust input tax in excess of ninety per cent of the output tax for that tax 
period: 
 
           286[Provided that the restriction on the adjustment of input tax in excess of 
ninety percent of the output tax, shall not apply in c ase of fixed assets or Capital 
goods:] 
 
           Provided further that the Board may by notification in the official Gazette, 
exclude any person or class of persons from the purview of sub-section (1).  
 
 (2) A registered person, subject to sub -section (1), may be allowed 
adjustment 287[or refund] of input tax not allowed under sub-section (1) subject to 
the following conditions, namely:–  
 
 (i) in the case of registered persons, whose accounts are subject to audit 
under the Companies Ordinance, 1984, upon furnishing a statement 
along with annual audited accounts, duly certified by the auditors, 
showing value additions less than the limit prescribed under sub -
section (1) above; or 
 
 (ii) in case of other registered persons, subject to the conditions and 
restrictions as may be specified by the Board by notification in the 
official Gazette. 
 
 (3) The adjustment or refund of input tax mentioned in sub-sections (2), 
if any, shall be made on yearly basis in the second month following the end of the 
financial year of the registered person. 
 
 (4) Notwithstanding anything contained in sub -sections (1) and (2), the 
Board may, by notification in the official Gazette, prescribe any other limit of input 
tax adjustment for any person or class of persons . 288In order to limit input tax 
                                           
281 Expression added by Finance Act, 2015. 
282 Substituted for full stop by Finance Act, 2007. 
283 Proviso inserted by Finance Act, 2007. 
284 Section 8B inserted by Finance Act, 2007. 
285 Words omitted by Finance Act, 2022. 
286 Proviso substituted by Finance Act, 2011. 
287 Words inserted by Finance Act, 2009. 
288 In sub-section (4) after the full stop at the end the Expression added by Finance Act, 2025.  
Sales Tax Act, 1990 
 
 39   
 
allowance, the Board may also use data based automated risk management system 
to defer certain input tax or fix higher or lower limits of input tax adjustment:  
  
 Provided that the registered person may contest the action taken  under this 
sub-section by filing application and documents with the Commissioner 
concerned, who shall decide the case within thirty days of such application. 
  
 289[(4A) Notwithstanding anything contained in sub-sections (1), (2) and (3), 
input tax allowed in case of locally manufactured electric vehicles subject to 
reduced rate of tax under the Eighth Schedule shall be limited to the extent of 
amount of output tax and no refund or carry forward of excess input tax shall be 
allowed.] 
 
 (5) Any auditor found guilty of misconduct in furnishing the certificate 
mentioned in sub-section (2) shall be referred to the Council for disciplinary action 
under section 20D of Chartered Accountants, Ordinance, 1961 (X of 1961).] 
 
 290[(6) In case a Tier -1 retailer does not in tegrate his retail outlet in the 
manner as prescribed under sub -section (9A) of section 3, during a tax period or 
part thereof, the adjustable input tax for whole of that tax period shall be reduced 
by 291[60%.] 
 
 9.  Debit and credit note. – Where a registered person has issued a tax 
invoice in respect of a supply made by him and as a result of cancellation of supply 
or return of goods or a change in the nature of supply or change in the value of the 
supply or some such event the amount shown in the tax invoice or the return needs 
to be modified, the registered person may, subject to such conditions and 
limitations as the Board may impose, issue a debit or credit note and make 
corresponding adjustment against output tax in the return. 
 
 292[10. Refund of input tax.– (1) If the input tax paid by a registered person 
on taxable purchases made during a tax period exceeds the output tax on account 
of zero rated local supplies or export made during that tax period, the excess 
amount of input tax shall be refunded to the registered person not later than forty-
five days of filing of refund claim in such manner and subject to such conditions 
as the Board may, by notification in the official Gazette specify: 
 
 293[Provided that in case of excess input tax against supp lies 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 B oard may, 
subject to such conditions and restrictions as it may impose, by notification in the 
official Gazette, prescribe the procedure for refund of such excess input tax.] 
                                           
289 New sub-section (4A) inserted by Finance Act, 2020. 
290 New sub-section (6) inserted through Finance Act, 2019. 
291 Expression substituted by Finance Act, 2021. 
292 Section 10 substituted by Finance Act, 2007. Earlier it was also substituted by Finance Act, 1998 and Finance Act, 1996 
293 Proviso substituted by Finance Act, 2008. 
Sales Tax Act, 1990 
 
 40   
 
 
 Provided further that the Board may, from such date and subject to such 
conditions and restrictions as it may impose, by notification in the official Gazette, 
direct that refund of input tax against exports shall be paid 294[at the fixed rates and 
in the manner as] notified in the such notification. 
 
 (2) If a registered person is liab le to pay any tax, default surcharge or 
penalty payable under any law administered by the Board, the refund of input tax 
shall be made after adjustment of unpaid outstanding amount of tax or, as the case 
may, default surcharge and penalty.  
 
 (3) Where there is reason to believe that a person has claimed input tax 
credit or refund which was not admissible to him, the proceedings against him shall 
be completed within sixty days. For the purposes of enquiry or audit or 
investigation regarding admissibility of the refund claim, the period of sixty days 
may be extended up to one hundred and twenty days by an officer not below the 
rank of an Additional 295[Commissioner Inland Revenue] and the Board may, for 
reasons to be recorded in writing, extend the aforesaid pe riod which shall in no 
case exceed nine months.] 
 
 296[11. ***] 
 
 297[11A. Short paid amounts recoverable without notice. – 
Notwithstanding any of the provisions of this Act, where a registered person pays 
the amount of tax less than the tax due as indicated in  his return, the short paid 
amount of tax along with default surcharge shall be recovered from such person by 
stopping removal of any goods from his business premises and through attachment 
of his business bank accounts, without giving him a show cause notice and without 
prejudice to any other action prescribed under section 48 of this Act or the rules 
made thereunder: 
 
 Provided that no penalty under section 33 of this Act shall be imposed 
unless a show cause notice is given to such person.] 
 
 298[11B. Limitation for issuing orders in certain cases.— For the purposes 
of issuing an assessment order or any other order in consequence of or to give 
effect to any order made by the Commissioner (Appeals), Appellate Tribunal, High 
Court, or Supreme Court, the p rovisions of section 124 of the Income Tax 
Ordinance, 2001 (XLIX of 2001) shall apply mutatis mutandis;] 
 
                                           
294 The expression substituted through Finance Act, 2019. 
295 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010The same amendment was made by Finance (Amen dment) 
Ordinance, 2010, promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan Extr aordinary part I at 
pages 23 to 53 and this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, 
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
296 Section 11 omitted by Finance Act, 2024. 
297 Section 11A Substituted by Finance Act, 2006. Earlier it was inserted by Finance Ordinance, 2002. 
298 Section 11B substituted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 41   
 
 299[11C. Power of tax authorities to modify orders, etc.– (1) Where a 
question of law has been decided by a High Court or the Appellate Tribunal in the 
case of a registered person, on or after first day of July, 1990, the Commissioner 
or an officer of Inland Revenue may, notwithstanding that he has preferred an 
appeal against the decision of the High Court or made an application for reference 
against the order of the Appellate Tribunal, as the case may be, follow the said 
decision in the case of the said taxpayer in so far as it applies to said question of 
law arising in any assessment pending before the Commissioner or an officer of 
Inland Revenue, until the decision of the High Court or of the Appellate Tribunal 
is reversed or modified.  
  
 (2)  In case the decision of High Court or the Appellate Tribunal, referred 
to in sub -section (1), is reversed or modified, the Commissioner or an officer of 
Inland Revenue may, notwithstanding the expiry of period of limitation prescribed 
for making any assessment or order, within a period of one year from the date of 
receipt of decision, modify the assessment or order in which the said decision was 
applied so that it conforms to the final decision.] 
 
300[11D. Best judgment Assessment. — (1) Where a person,  
(a)  fails to furnish a sales tax return in response to notice under 
sub-section (2A) of section 26; or  
 
(b)  fails to produce before the officer of Inland Revenue not 
below the rank of Assistant Commissioner under sections 
25 or 38A, accounts, documents and r ecords required, or 
any other relevant document or evidence that may be 
required by him, the officer of Inland Revenue not below 
the rank of Assistant Commissioner may, after a notice to 
show cause to such person, based on any available 
information or mate rial and to the best of his judgment, 
make an assessment of tax payable or refund due and also 
charge penalty and default surcharge.  
 
 (2)  For the purposes of clause (b) of sub -section (1), the officer of 
Inland Revenue may also disallow or reduce a registered person input tax on goods 
if the registered person is unable, to provide invoice or other record or evidence of 
the transaction or circumstances giving rise to such claim.  
 (3)  Where a best judgment assessment has been made due to default 
of clause (a) of sub-section (1) and the person files the return within sixty days of 
issuance of order under this section thereafter and pays the amount of tax payable 
along with default surcharge and penalty, the notice to show cause and the order 
of assessment shall abate. 
 
(4)  Notwithstanding anything in sub -section (1), where the Federal 
Board of Revenue has specified conditions for the purpose of determination of 
                                           
299 New section 11C inserted by Finance Act, 2020. 
300 New sections 11D to 11G inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 42   
 
minimum tax liability in respect of a person who is required to file return but who 
fails to file such return, the Officer of Inland Revenue shall determine such liability 
of the registered person in accordance thereof. 
 
301(5) Notwithstanding anything contained in this section, in case of 
person who is liable to be registered under clause (25) of s ection 2 based on tax 
withheld under section 236G of Income Tax Ordinance, 2001 (XLIX of 2001) and 
does not furnish a return upon notice, an officer of inland revenue may assess sales 
tax liability on the value addition on reasonable grounds including info rmation 
obtained from the purchase data under section 236G of Income Tax Ordinance, 
2001 (XLIX of 2001).  
 
11E.  Assessment of tax and recovery of tax not levied or short levied 
or erroneously refunded.-302(1) Where due to any reason, any tax or charge has 
not been levied or short levied or where the officer of Inland Revenue not below 
the rank of Assistant Commissioner suspects on the basis of audit or otherwise that 
due to any reason a person has-  
 
(a)  not paid or short paid due sales tax;  
(b)  claimed input tax credit or refund which is not admissible;or  
 
(c)  has obtained an amount of refund not due,  
 
the officer of Inland Revenue after issuing a show cause notice to the 
person shall pass an order to det ermine and recover the amount of tax unpaid or 
short paid, inadmissible input tax or refund, or unlawful refund obtained and shall 
also impose penalty and default surcharge in accordance with sections 33 and 34: 
 
Provided that this section shall not be applicable to the extent of 
proceedings initiated under section 37A of the Act. 
 
(2) For the purposes of sub-section (1), the officer of Inland Revenue may 
also disallow input tax on goods or services if the taxpayer is unable,  without 
reasonable cause, to provide a receipt, or invoice or other record or evidence of the 
transaction or circumstances giving rise to such claim.  
(3)  Where a tax or charge has not been levied under clause (a) of sub -
section (1), the amount of tax shall be recovered as tax fract ion of the value of 
supply.  
 
       11F. Failure to withhold sales tax.— Where any person, required to withhold 
sales tax under sub -section (7) of section 3, fails to withhold the tax or having 
withheld the tax fails to deposit the same in the prescribed manner, the officer of 
Inland Revenue not below the rank of Assistant Commissioner shall after a notice 
to such person to show cause pass an order to determine and recover the amount 
in default and impose penalty and default surcharge under section 33 and 34.  
                                           
301 Sub-section (5) inserted by Finance Act, 2025 
302Sub-section (1) substituted by Finance Act, 2025  
Sales Tax Act, 1990 
 
 43   
 
 
11G.  Limitation for assessment. — (1) The show cause notice under 
sections 11D to 11F shall be issued within five years, from the end of the financial 
year in which the relevant date falls.  
  
(2)  An order under sections 11D, 11E and 11F shall be made within 
one hundred and 303[eighty days] of issuance of show cause notice or within such 
extended period as the Commissioner may, for reasons to be recorded, in writing 
specify, provided that such extended period shall in no case exceed from ninety 
days:  
 
Provided that any period during which t he proceedings are adjourned on 
account of a stay order or Alternative Dispute Resolution proceedings or the time 
taken through adjournment by the registered person not exceeding sixty days shall 
be excluded from the computation of the period specified in this sub-section.  
 
 (3)  For the purpose of sections 11D, 11E and 11F, the words “relevant 
date” means—  
(a)  the time of payment of sales tax or charge as provided under 
section 6;  
(b)  the time of payment for goods or services on which sales tax 
was to be withheld under sub-section (7) of section 3; and 
(c)  in a case where sales tax or charge has been erroneously 
refunded, the date of its refund.] 
 
 304[12. ***] 
 
 305[13. Exemption.–  (1) Notwithstanding the provisions of section 3, 
supply of goods or import of goods specified in the Sixth Schedule shall, subject 
to such conditions as may be specified by the 306[Federal Government], be exempt 
from tax under this Act 307[.] 
 
 308[***] 
 
 (2) Notwithstanding the provisions of sub-section (1) – 
 
 309[(a) the Federal Government may, whenever circumstances exist to take 
immediate action for the purposes of national security, natural 
disaster, national food security in emergency situations and 
implementation of bilateral and multilateral agreements, by 
notification in the official Gazette, exempt any supplies made or 
                                           
303 For the words “twenty days”, the words “eighty days” substituted by Finance Act, 2025 
304 Section 12 omitted by Finance Act, 1996. 
305 Section 13 substituted by Finance Act, 1996. 
306 Substituted for “Board” by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999. 
307 Substituted for colon by Tax Laws Amendment Ordinance, 2000, full Stop was substituted for colon by sales tax “(Ame ndment) Ordinance, 1999, 
dated 13th August, 1999. 
308 Provisos omitted by Tax Laws Amendment Ordinance, 2000, dated 24th May, 2000. Earlier it was omitted by sales Tax (Amendment)  Act, 1999 
dated 30-03-1999. 
309 Clause (a) substituted through Finance Act, 2019. 
Sales Tax Act, 1990 
 
 44   
 
imports, of any goods or c lass of goods from the whole or any part 
of the tax chargeable under this Act, subject to the conditions and 
limitations specified therein;] 
 
 310[(b) ***] 
  
 (3) The exemption from tax chargeable under sub -section (2) may be 
allowed from any previous date specified in the notification issued under clause 
(a) 311[***].] 
 
 312[(4) ***] 
 
 313[(5) ***] 
 
 314[(6) The 315[Board] shall place before the National Assembly all 
notifications issued under this section in a financial year. 
 
 (7) Any notification issued under sub -section (2), after 1 st July, 2015 
shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in 
which it was issued 316[: 
 
 Provided that all such notifications, except those earlier rescinded, shall be 
deemed to have been in force with effect from the 1st July, 2016 and shall continue 
to be in force till the 30th June, 2018, if not earlier rescinded: 
 
 Provided further that all notif ications issued on or after the first day of 
July, 2016 and placed before the National Assembly as required under sub-section 
(6) shall continue to be in force till thirtieth day of June, 2018, if not earlier 
rescinded by the Federal Government or the National Assembly.] 
                                           
310 Clause (b) omitted by Finance Act, 2015. 
311 Expression “or, as the case may be, order made under clause (b) of that sub-section” omitted by Finance Act, 2015. 
312 Sub-section (4) omitted by Finance Act, 2006. 
313 Sub-section (5) omitted by Sales Tax (Amendment) Ordinance, 2000. 
314 Sub-section (6) and sub-section (7) added by Finance Act, 2015. 
315 Substituted for the words “Federal Government” through Finance Act, 2017 
316 For the full stop a colon inserted and thereafter new provisos added through Finance Act, 2017 
Sales Tax Act, 1990 
 
 45   
 
Chapter-III 
 
REGISTRATION 
 
 317[14. Registration.— (1) Every person engaged in making taxable 
supplies in Pakistan, including zero-rated supplies, in the course or furtherance of 
any taxable activity carried on by him, falling in any of the following categories, 
if not already registered, is required to be registered under this Act, namely:- 
 
 (a) a manufacturer who is not running a cottage industry;  
   
 (b) a retailer who is liable to pay sales tax under the Act or rules made 
thereunder, excluding such retailer required to pay sales tax through 
his electricity bill under sub-section (9) of section 3;  
 
 (c) an importer;  
  
 (d) an exporter who intends to obtain sales tax refund against his zero -
rated supplies; 
  
 (e) a wholesaler, dealer or distributor; and 
   
 (f) a person who is required, under any othe r Federal law or Provincial 
law, to be registered for the purpose of any duty or tax collected or 
paid as if it were a levy of sales tax to be collected under the Act. 
 
318(1A) Every person including a non -resident person except who is 
running a cottage industry and the retailers who are required to pay sales tax 
through electricity bills under sub-section (9) of section 3, selling digitally ordered 
goods from within Pakistan through online marketplace, website or software 
application as the case may be, shall apply in the prescribed form and in the 
prescribed manner for registration. 
 
 (1B) Every online marketplace or a courier, involved in e -commerce by 
supplying digitally ordered goods from within Pakistan shall not allow any person 
to use their services to carry out e-commerce transactions unless it holds NTN and 
in case sub-section (1A) of this section applies also holds sales tax registration. 
 
 (2) Persons not engaged in making of taxable supplies in Pakistan, if 
required to be registered for making imports or exports, or under any provisions of 
the Act, or any other Federal law, may apply for registration.  
 
 319(2A) If a person, who is required to be registered under the Act, does 
not apply for registration and the Commissioner Inland Revenue or any o ther 
                                           
317Section 14 substituted by Finance Act, 2015. 
318 Sub-section (1A) and (1B) inserted by Finance Act, 2025 
319 Sub-section (2A) inserted by Finance Act, 2025 
Sales Tax Act, 1990 
 
 46   
 
officer, as may be authorized by the Board, after such inquiry as deemed 
appropriate, having reason to believe that a person is liable to register, he shall 
compulsorily register such person after providing an opportunity of being heard. 
 
 (3) The registration under this Act shall be regulated in such manner as 
the Board may, by notification in the official Gazette, prescribe.] 
 
 320[14A. *** repealed] 
  
 321[14AB.Discontinuance of gas and electricity connections. –
Notwithstanding anything contained in this Act or any other law for the time being 
in force, the Board shall have power through Sales Tax General Order to direct the 
gas and electricity distribution companies for discontinuing the gas and electricity 
connections of any person who fall in the following categories, namely:– 
 
(a) Any person, including tier-1 retailers, who fail to register 
for sales tax purpose or  
(b) Notified tier-1 retailers registered but not integrated with 
the Board’s Computerized System: 
 
 Provided that upon registration or integration, as the case may be, of the 
above said persons, the Board shall notify the restoration of their gas or electricity 
connection through Sales Tax General Order.] 
 
32214AC. Bar on operations of Bank Accounts.  – (1) This section shall 
apply–  
(a) where the Commissioner has reasons to believe that a 
person is engaged in supply of taxable goods without 
having registration under this Act; 
 
(b) the Commissioner has provided three consecutive 
opportunities of being heard to the person to obtain 
registration under this Act; and 
 
(c) the person has failed to obtain registration. 
 
(2) Notwithstanding anything contained in this Act or any other law 
for the time being in force, the Commissioner shall have the powers to direct 
banking companies, scheduled banks and other financial institutions, through an 
order in writing, to intermittently suspend operation of the bank account of such a 
person for three working days. 
 
                                           
320 Section 14A repealed, which was earlier inserted by Tax Laws (Third Amendment) Ordinance, 2021. 
321 New section 14AB added by Finance Act, 2022. 
322 Section 14AC,14Ad and 14AE inserted by Finance Act, 2025 
Sales Tax Act, 1990 
 
 47   
 
(3) The Commissioner shall, if the contravention continues under sub-
section (1), repeat suspension specified in sub-section (2), for two more times with 
an interval of one week between the suspensions. 
 
(4) The Commissioner shall , if the contravention under sub -section 
(1) continues after his order under sub -section (3), direct the banking companies, 
scheduled banks and other financial institutions, through an order in writing to 
permanently bar operation of the bank accounts of the person. 
 
(5) Upon registration of such person, the Commissioner shall issue 
and convey order for removal of bar on operati on of his bank accounts not later 
than two working days.  
 
(6) Any person, aggrieved by any decision or order passed under this 
section, may within thirty days of the date of receipt of such decision or order 
prefer an appeal before the Chief Commissioner Inland Revenue. 
 
(7) The provisions of this section shall come into force on such date 
as the Board may notify in the official Gazette. 
  
14AD. Bar on transfer of Immoveable Property.  — (1) Where the 
person fails to obtain registration within fifteen days from issuance of order under 
sub-section (4) of section 14AC, the Chief Commissioner shall constitute a 
committee comprising the Chief Commissioner, Commissioner and one member 
from the Chamber of Commerce or a Trade Associations, as the case may be. 
 
(2) The committee shall issue a notice to such unregistered person 
which shall also be prominently displayed at the business premises of the person. 
 
(3) The committee after affording a personal hearing to the person 
shall either recommend for imposition of bar on transfer of immovable property or 
recommend to the Commissioner to remove the bar imposed under section 14AC. 
 
(4) For imposition of bar on transfer of immovable property, the 
Committee shall recommend the Commissioner for imposition of bar on transfe r 
of immovable property: 
  
Provided that the Committee shall provide an opportunity to obtain 
registration within fifteen days prior to the recommendation.   
 
(5) The Commissioner shall have the powers to direct the property 
registering authority, through an order in writing, to bar transfer of immoveable 
property of any person who fails to obtain registration after lapse of fifteen days. 
 
(6) Upon registration of such person, the Commissioner shall issue 
and convey order for removal of bar on transfer of i mmovable property not later 
than two working days. 
Sales Tax Act, 1990 
 
 48   
 
 
(7) Any person, aggrieved by the decision or order passed may, within 
thirty days of the date of receipt of such decision or order prefer an appeal before 
the Chief Commissioner Inland Revenue who is not member of the committee. 
 
(8) The provisions of this section shall come into force on such date 
as may be notified by the Board. 
 
14AE. Other measures for non-registration.– (1) Subject to prior action 
under section 14AC and 14AD, any person who fails to g et registered for the 
purposes of this Act, the Chief Commissioner shall have the powers to-- 
 
(a)  seal the business premises; 
 
(b)  seize moveable property; or  
 
(c)  appoint a receiver for the management of the taxable activity of a 
person. 
 
(2) Action under sub-section (1) shall not be carried out, unless- 
 
(a) a public notice is issued specifying the date from which 
the premises shall be sealed, or movable property is 
seized, or a receiver is appointed for the management of 
the taxable activity; 
 
(b) a committee comprising the Chief Commissioner, the 
Commissioner concerned and a representative from the 
Chambers of Commerce or Trade Associations, provides 
an opportunity of being heard to the person through an 
open court; and 
 
(c) such decision is made public by placement on the Board’s 
website and newspaper as well. 
 
(3) Upon registration, of such person the Chief Commissioner shall 
reverse the order issued under sub-section (1) not later than two working days. 
 
(4) Any person, aggrieved by any decision or order passed under sub-
section (1), may within thirty days of the date of receipt of such decision or order, 
prefer representation before the Board. 
 
 (5) All or any of the provisions of this section shall come into force on 
such date as the Board may notify in the official Gazette. 
 
Sales Tax Act, 1990 
 
 49   
 
 323[15. ***] 
 
 324[16. ***] 
 
 325[17. *** 
 
 18. *** 
  
 19. *** 
 
 20. ***] 
 
 326[21. De-registration, blacklisting and suspension of registration.– (1) 
The Board or any officer, authorized in this behalf, may subject to the rules, de-
register a registered person or such class of registered persons not required to be 
registered under this Act. 
  
 (2) Notwithstanding anything contained in this Act, in cases where the 
327[Commissioner] is satisfied that a registered person is found to have issued fake 
invoices 328[...] or has 329[otherwise] committed tax fraud, he may 330[issue an order 
of suspension and blacklisting ] such person or suspend his registration in 
accordance with such procedure as the Board may by notification in the official 
Gazette, prescribe.]  
 
331(2A)  The Commissioner shall, within ten days of issuance of order of 
suspension, issue a show cause notice to the registered person. Upon receipt of the 
reply to the notice and after giving an opportunity of hearing to the registered 
person, if the Commissioner is satisfied, he may order for revoking of suspension 
of the registered person or issue an appealable speaking order for blacklisting of 
the registered person within thirty days of receipt of the reply to the notice. 
 
 332[(3) During the period of suspension of registration, the invoices issued 
by such person shall not be entertained for the purposes of sale s Tax refund or 
input tax credit, and once such person is black listed, the refund or input tax credit 
claimed against the invoices issued by him, whether prior or after such black 
listing, shall 333[...] be rejected through a self-speaking appealable order and after 
affording an opportunity of being heard to such person.]  
  
                                           
323Section 15 omitted by the Finance Act, 2014. 
324 Section 16 omitted by Finance Act, 2003. 
325 Sections 17 to 20 omitted by Finance Act, 2004. 
326 Section 21 substituted by Finance Act, 2004. 
327 Substituted “for collector” by Finance Act, 2010 
328 Comma and words “, evaded tax” omitted by Finance Act, 2005. 
329 Word inserted by Finance Act, 2005. 
330 Words substituted by Finance Act, 2024. 
331 Sub-section (2A) inserted by Finance Act, 2025 
332 Sub Section (3) inserted by Finance Act, 2011 
333 Words and figure omitted by Finance Act, 2013. 
Sales Tax Act, 1990 
 
 50   
 
 334[(4) Notwithstanding anything contained in this Act, where the Board, the 
concerned Commissioner or any officer authorized by the Board in this behalf has 
reasons to believe that a registered person is engaged in issuing fake or flying 
invoices, claiming fraudulent input tax or refunds, does not physically exist or 
conduct actual business, or is committing any other fraudulent activity, the Board, 
concerned Commissioner or such Offic er may after recording reasons in writing, 
block the refunds or input tax adjustments of such person and direct the concerned 
Commissioner having jurisdiction for further investigation and appropriate legal 
action.] 
 
335[(5)  Notwithstanding anything contained in this Act, the Chief 
Commissioner may, either of his own motion or on application made by the 
registered person call for and examine the record of proceedings and the order of 
suspension and blacklisting under sub-section (2) and after making such inquiry as 
is necessary, may modify the such order as he may deems fit:  
Provided that no order under this sub -section shall be passed unless an 
opportunity of being heard has been provided to the registered person.] 
 
 336[21A. Active taxpayers list.-The Board shall have the power to maintain 
active taxpayers list in the manner as may be prescribed by rules and such rules 
may provide for the restrictions and limitations to be imposed on a person who 
ceases to be an active taxpayer.] 
 
Chapter-IV 
 
BOOK KEEPING AND INVOICING  
REQUIREMENTS 
 
 337[22. Records.– (1) A registered person making taxable supplies shall 
maintain and keep at his business premises or registered office in English or Urdu 
language the following records of goods purchased 338[, imported] and supplied 
(including zero-rated and exempt supplies) made by him or by his agent acting on 
his behalf in such form and manner as would permit ready ascertainment of his tax 
liability during a tax period – 
  
 (a) records of supplies made shall indicate the description, quantity and 
value of goods, name and address of the person to whom supplies 
were made and the amount of the tax charged; 
 
 (b) records of goods purchased shall show the description, quantity and 
value of goods, name, address and registration number of the supplier 
and the amount of the tax on purchases; 
 
                                           
334 Sub section (4) inserted by Finance Act, 2013. 
335 New sub-section added by Finance Act, 2024. 
336 Section 21A inserted by Finance Act, 2015. 
337 Section 22 substituted by Finance Act, 1996. 
338 The comma and words inserted by Finance Act, 2005. 
Sales Tax Act, 1990 
 
 51   
 
 339[(c) records of goods imported shall show the description, quantity and 
value of goods and the amount of tax paid on imports;] 
 
 340[(d)] records of zero-rated and exempt supplies; 
 
 341[(da)  double entry sales tax accounts;] 
 
 342[(e)]  invoices, credit notes, debit notes, bank statements, 343[banking 
instruments in terms of section 73,] inventory records, 344[utility 
bills, salary and labour bills, 345[cash book,] rental agreements, sale 
purchase agreements and lease agreements]; 346[...] 
 
 347[(ea) Record relating to Gate passes, inward or outward and transport 
receipts.] 
 348[(eb) Electronic version of records mentioned in clauses (a) to (ea) of this 
sub-section.] 
 
 349[(f)] such other records as may be specified by the Board: 
 
 350[Provided that the persons paying 351[...] retail tax shall keep such record 
as may be specified by the Board.] 
 
352[(1A) Notwithstanding anything in any other law for the time being in 
force, the Board may require, by notification in the official Gazette, a r egistered 
person or class of registered persons to declare and use only as many number of 
business bank accounts as may be specified by the Board in such notification to 
make or receive payments on account of purchase and sale transactions for the 
purpose of this Act or rules made thereunder and to make payment of due tax from 
such accounts only.] 
 
 (2) The Board may, by notification in the official Gazette, specify for any 
class of taxable persons or any other person registered under this Act to keep such 
other records for the purposes of this Act. 
 
 353[(2A) The Board may, by notification in the Official Gazette, specify for any 
class of taxable persons registered under this Act to use such electronic fiscal cash 
registers as are approved by the Board in the manner as may be prescribed.] 
                                           
339 Clause (c) inserted by Finance Act, 2005. 
340 Existing clause (c) re-lettered as clause (d) by Finance Act, 2005. 
341 Clause (da) inserted by Finance Act, 2006. 
342 Existing clause (d) re-lettered as clause (e) by Finance Act, 2005. 
343 The words, comma and figure inserted by Finance Act, 2004. 
344 The commas and words inserted by Finance Act, 1999. 
345 Expression inserted by Finance Act, 2021. 
346 The word “and” omitted by Finance Act, 2013. 
347 Clause (ea) inserted by Finance Act, 2013. 
348 New clause (eb) inserted by Finance Act, 2021. 
349 Existing clause (e) re-lettered as clause (f) by Finance Act, 2005 
350 Proviso substituted by the Finance Act, 1997. 
351 The words “turnover tax or” omitted by Finance Act, 2005. 
352 Sub-section (1A) inserted by Finance Act, 2007. 
353 Sub-section (2A) inserted by Finance Act, 1999. 
Sales Tax Act, 1990 
 
 52   
 
  
 354[(3) The Board may, by notification in the official gazette, prescribe the 
procedure or software for electronically maintenance of records, filing of sales tax 
returns or refunds and for any other matter or approve any software for electronic 
maintenance of records and filing of returns or refunds by a person or class of such 
persons.]] 
 
 355[(4) The registered persons, whose accounts are subject to audit under the 
Companies Ordinance, 1984 (XLVII of 1984), shall be required  to submit a copy 
of the annual audited accounts, along with a certificate by the auditors certifying 
the payment of due tax by the registered person.] 
 
 23. Tax Invoices.– (1) A registered person making a taxable supply shall 
issue a serially numbered tax invoice at the time of supply of goods containing the 
following particulars356[, in Urdu or English language,] namely: –  
 
 (a) name, address and registration number of the supplier; 
 
 [357(b) name, address and registration number of the recipient and in case of 
supplies by manufacturer or importer to unregistered distributor, the 
NIC or NTN of such unregistered distributors, as the case may.] 
 
  Explanation. – For the purpose of this clause, ordinary consumer 
means a person who is buying the goods for his own  consumption 
and not for the purpose of re-sale or processing:  
  
  Provided that the condition of NIC or NTN shall be effective from 
1st August, 2019 358[:] 
 
  359[Provided further that the condition of NIC shall not apply in the 
case of payment through debit or credit card or digital mode;] 
 
 (c) date of issue of invoice; 
 
 (d) description 360[including count, denier and construction in case of 
textile yarn and fabric,] and quantity of goods; 
 
 (e) value exclusive of tax; 
 
 (f) amount of sales tax; and 
 
                                           
354 Sub Section (3) substituted by Finance Act, 2003. 
355 Sub Section (4) inserted by Finance Act, 2007. 
356 The expression added through Finance Act, 2019. 
357 Clause (b) substituted by Finance Act, 2022. 
358 Colon substituted by Finance (Supplementary) Act, 2022. 
359 Proviso inserted by Finance (Supplementary) Act, 2022. 
360 The expression added through Finance Act, 2019. 
Sales Tax Act, 1990 
 
 53   
 
 361[(ff) ***] 
 
 (g) value inclusive of tax: 
 
 Provided that the Board may, by notification in the official Gazette, 
specify such modified invoices 362[...] for different persons or classes of persons; 
 
 Provided further that not more than one tax invoice shall be issued for a 
taxable supply363[.] 
 
364Provided also that where any goods are transported or supplied, the 
registered person shall ensure the generation and linkage of the tax invoice with 
the e-Bilty generated under section 40C of this Act and section 83C of the Customs 
Act, 1969. 
 
 365[***] 
 
 366[(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 shall, subject to such 
conditions, restrictions and limitations as the Board may, by notification in the 
official Gazette, specify to issue electronic invoices.] 
 371[(4) The Board may, by notification in the Official Gazette, prescribe the 
manner and procedure for regulating the issuance and authentication of tax 
invoices.] 
 
 372(5)  The Board through notification in the official Gazette, may require 
any person or class of persons to integrate their electronic invoicing system with 
the Board’s Computerized System for real time reporting of sales in such mode 
and manner and from such date as may be specified therein.  
 (6)  Licensed integrator shall integrate electronic invoicing system of 
registered persons referred to in sub-section (5) in such mode and manner as may 
be prescribed: 
  Provided that from such date, and in such mode and m anner, as 
prescribed by the Board, all Tier-1 retailers shall integrate their retail outlets with 
Board’s computerized system for real-time reporting of sales. 
                                           
361 Clause (ff) omitted by Finance Act, 2004. 
362 Comma and words “, including replacement invoice,” omitted by Finance Act, 1997. 
363 Full stop substituted by Finance (Supplementary) Act, 2022. 
364 Proviso inserted by Finance Act, 2025. 
365 Proviso omitted by Finance (Supplementary) Act, 2022. 
366 Sub Section (2) inserted by Finance Act, 1996. 
367 Words “turnover tax or” omitted by Finance Act, 2004. 
368 Words “or retailer tax” added by Finance Act, 1997. 
369 Words inserted by Finance Act, 1997. 
370 Sub section (3) substituted by Finance Act, 2024. 
371 Sub Section (4) inserted by Finance Act, 2007. 
372 Sub-sections (5) inserted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 54   
 
 
 373[24.  Retention of record and documents for 374[Six] years.– A person, 
who is required to maintain any record or documents under this Act, shall retain 
the record and documents for a period of 352[Six] years after the end of the tax 
period to which such record or documents relate 375[or till such further period the 
final decision in any proceedings including proceedings for assessment, appeal, 
revision, reference, petition and any proceedings before an alternative Dispute 
Resolution Committee is finalized].] 
 
 376[25.  Audit of sales tax affairs .– (1) The Commissioner on the basis of 
reasons to be recorded in writing, may direct the officer of Inland Revenue not 
below the rank of Assistant Commissioner to conduct audit of sales tax affairs of 
any registered person and issue a notice to such register ed person intimating him 
regarding audit of sales tax affairs.  
 
Explanation.- For the removal of doubt, it is declared that the 
powers of the Commissioner to direct conduct of audit and to issue a notice 
under this sub -section are independent of the powers of the Board under 
section 72B and nothing contained in section 72B restricts the powers of the 
Commissioner to direct conduct of audit and to issue notice under this sub-
section.  
 
 (2)  The Commissioner shall communicate the reasons referred to in 
sub-section (1) to the registered person whose audit is to be conducted through the 
notice under sub-section (1).  
 
Explanation.- For the removal of doubt, it is declared that the 
Commissioner may not provide an opportunity of hearing before issuance 
of notice under sub-section (1).  
 
 (3)  The reasons referred to in sub -section (1) shall be based on 
scrutiny of the available records including sales tax and federal excise returns, 
income tax returns and withholding statements, financial statements or third party 
information:  
 
Provided that the reasons shall not include the mere verification of input 
tax, output tax, refund claim and compliance of legal provisions without 
identifying risk factors that require such verification.  
 
 (4)  Subsequent to the issuance of notice under sub -section (1), the 
officer of Inland Revenue, may call for any record or documents including record 
maintained under this Act, the rules made thereunder or any other law for the time 
being in force for conductin g audit of the sales tax affairs of the person. Where 
                                           
373 Section (24) substituted by Finance Act, 1996. 
374 Substituted for “Five” by Finance Act, 2010. 
375 Words and Commas inserted by Finance Act, 2010. 
376 Section 25 substituted by Finance Act, 2024.  
Sales Tax Act, 1990 
 
 55   
 
such record or documents have been kept on electronic data, the registered person 
shall allow authorize officer of Inland Revenue access to the use of machine and 
software on which such data is kept and the officer of Inland Revenue may obtain 
duly attested hard copies of such information or data from the registered person:  
 
Provided that the officer of Inland Revenue shall not call for record or 
documents of the registered person after expiry of six ye ars from the end of the 
financial year to which they relate.  
 
 (5)  The officer of Inland Revenue may require the registered person 
to attend his office in person or through an authorized representative. The 
registered person shall produce such accounts, documents or any evidence as the 
officer of Inland Revenue may consider necessary.  
 
 (6)  The officer of Inland Revenue not below the rank of Assistant 
Commissioner may conduct or cause to be conducted such enquiry and obtain such 
information from any third party as he considers appropriate.  
 
 (7)  The officer of Inland Revenue not below the rank of Assistant 
Commissioner shall conduct audit of the sales tax affairs to verify the correctness 
or otherwise of the declared tax liability, output tax, input tax claimed, tax paid, 
refund claimed, stocks co nsumed or available for ascertaining compliance or 
otherwise with the provisions of this Act and the rules made thereunder on the 
basis of the record and evidence obtained under sub-sections (5) or (6).  
 
(8)  The officer of Inland Revenue may conduct audi t proceedings 
electronically through video links, or any other facility as may be prescribed by the 
Board.  
 
(9)  After completion of the audit, the officer of Inland Revenue may, 
if required pass an order under section 11E, after providing an opportunity of being 
heard to the registered person under sub-section (1) of section 11E.  
 
(10)  Notwithstanding anything contained in sub -sections (7) and (9) 
where a registered person fails to produce before the officer of Inland 75 Revenue, 
any accounts, documents or records required to be maintained under this Act or the 
rules made thereunder or any other relevant document electronically kept record, 
electronic machine or any other evidence that may be required by the officer of 
Inland Revenue for the purpose of audit. The officer of Inland Revenue may 
proceed to make best judgment assessment under section 11D of this Act.  
 
(11)  Notwithstanding the penalties prescribed in section 33, if a 
registered person wishes to deposit the amount of tax short paid or amount of tax 
Sales Tax Act, 1990 
 
 56   
 
evaded along with default surcharge voluntarily, whenever it comes to his notice, 
before receipt of notice of audit, no penalty shall be recovered from him:  
 
Provided that if a registered person wishes to deposit the amount of tax 
short paid or amount of tax evaded along with default surcharge during the audit, 
or at any time before issuance of show cause notice under section 11E, he may 
deposit the evaded amount of tax, default surcharge under section 34, and twenty 
five percent of the penalty payable under section 33:  
 
Provided further that if a registered person wishes to deposit the amount 
of tax short paid or amount of tax evaded along with default surcharge after 
issuance of show cause notice under section 11E, he shall deposit the evaded 
amount of tax, default surcharge under section 34, and full amount of the penalty 
payable under section 33 and thereafter, the show cause notice, shall stand abated.] 
 
 377[25A. Drawing of samples. – Where an authorized officer of 378[Inland 
Revenue] considers it necessary to take a sample of any goods or raw materials, 
for the purpose of determining their liability to sales tax or for the purpose of 
establishing their value or for any other reason, he may remove a minimum 
quantity of goods or raw materials sufficient to enable a proper examination or 
analysis to be made. At the time of taking the sample the person in possession of 
the goods shall be informed and given the opportunity to sign the representative 
samples, so drawn, and ta ke a corresponding sample for his record. Any sample 
taken under this section shall be taken against a proper receipt a copy each of which 
shall be kept in the record by the registered person and the 379[Large Taxpayers 
Unit or Regional Tax Office, as the case may be].] 
 
 380[25AA. Transactions between Associates.– 6[(1)] The Commissioner or an   
office of Inland Revenue may, in respect of any transaction between persons who 
are associates, determine the transfer price of taxable supplies between the persons 
as is necessary to reflect the fair market value of supplies in an arm’s length 
transaction.] 
 
 381[(2) The Board may, by notification in official gazette, prescribe rules for 
carrying out the purpose of sub-section (1).] 
 
 
 
                                           
377 Section 25A inserted by Finance Act, 1999. 
378 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordi nance 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
379 Substituted for “Collectorate” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
380 Section (25AA) by Finance Act, 2010 w.e.f. june5, 2010, the same amendment was made by Finance (Amendment) Ordinance 2010, promulgated 
as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and this 
amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2 009 
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
381 Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 57   
 
Chapter-V 
 
RETURNS 
 
 382[26. 383[***] Return.– (1) Every registered person 384[...] shall furnish not 
later than the due date a true 385[, complete] and correct return in the  prescribed 
form to a designated bank 386[or any other office] specified by the Board, indicating 
the purchases and the supplies made during a tax period, the tax due and paid and 
such other information, as may be prescribed  387[;] 
 
 388[Provided that the Board may, by notification in the official Gazette, 
require any person or class of persons to submit return on quarterly basis: 
 
 Provided further that the Board may, by notification in the official Gazette, 
require any person or class of persons to submit such return as may be prescribed 
annually in addition to the monthly return or quarterly return: 
 
 Provided also that the return filed electronically on the web or an y 
magnetic media or any other computer readable media as may be specified by the 
Board shall also be deemed to be a return for the purpose of sub -section (1) and 
the Board may, by notification in the official Gazette, make rules for determining 
eligibility of the data of such returns and e-intermediaries who will digitize the data 
of such returns and transmit the same electronically under their digital signatures  
389[:] 
 
 Provided also that every online marketplace shall furnish not later than the 
due date a true, complete and correct monthly statement in the prescribed form, 
indicating the supplier-wise amount paid and tax due and such other information 
of the taxable supplies of digitally ordered goods irrespective of the economic 
ownership of the supplies from within Pakistan: 
 
 Provided further also that every payment intermediary and courier shall 
furnish not later than the due date a true, complete and correct monthly statement 
in the prescribed form, indicating the supplier -wise amount paid and tax due and 
such other information for taxable supplies of digitally ordered goods from within 
Pakistan through an online market place, website and software application and 
delivering goods using its payment platform or courier service as the case may be. 
 
 390[...] 
  
                                           
382 Section 26 substituted by Finance Act, 1996 
383 Word “monthly” omitted by Finance Act, 2006. 
384 Words “making taxable supplies” omitted by Finance Act, 1999. 
385 Comma and word inserted by Finance Act, 2020. 
386 Words inserted by Finance Act, 2006. 
387 In the proposed amendment “a full stop is substituted for a colon” while colon is already appearing. 
388 Proviso inserted by Finance Act, 2006. 
389 In sub-section (1), in the third proviso, for the full stop at the end, a colon is substituted and thereafter new provisos inserted by Finance Act, 2025. 
390 Proviso omitted by Finance Act, 2006 
Sales Tax Act, 1990 
 
 58   
 
 (2) 391[....] omitted 
 
392[(2A) The officer of Inland Revenue may, by notice in writing, require 
any person who, in his opinion, is required to file a return under this section for a 
tax period or tax periods but who has failed to do so, to furnish the return or returns 
within fifteen days from the date of service of such notice or such longer or shorter 
period as may be specified in such notice or as the officer of Inland Revenue may 
allow:  
 
Provided that the notice under this sub -section shall only be issued 
within fifteen years from the end of the financial year in which the return was to 
be filed, in cases of tax fraud and five years in all other cases.] 
 
  393[(3) A registered person may, subject to approval of the 394[Commissioner 
Inland Revenue] having jurisdiction, file a revised return within 395[one hundred 
and twenty] days of the filing of return under sub -section (1) or, as the case may 
be, sub-section (2), 396[ or under clause (a) or clause (b) of section 27 ], to correct 
any omission or wrong declaration made therein 397[.] 
 
 [omitted]  
 
 398(3A)  Unless restricted by the compliance risk management system of the 
Board, the approval under sub-section (3), shall not be required if revised return is 
filed within sixty days of filing of return and the tax payable therein is more than 
the amount paid or the refund claimed therein is less than the amount as claimed, 
under the return sought to be revised. 
 
 399[(4) Notwithstanding the penalties prescribed in section 33, if a registered 
person wishes to file revised return voluntarily along with deposit of the amount 
of tax short paid or amount of tax  evaded along with 400[default surcharge] , 
whenever it comes to his notice, before receipt of notice of audit, no penalty shall 
be recovered from him: 
 
 Provided that in case the registered person wishes to deposit the amount 
of tax as pointed out by the officer of 401[Inland Revenue] during the audit, or at 
any time before issuance of the show cause notice 402[...], he may deposit the 
evaded amount of tax, [default surcharge] under section (34), and twenty five 
percent of the penalty payable under section 33 along with the levied return: 
 
                                           
391 Sub-section (2) omitted through Finance Act, 2016. 
392 New sub-section inserted by Finance Act, 2024. 
393 Sub section (3) substituted by Finance Act, 2006.  
394 Substituted for collector of Sales tax by Finance Act, 2010 
395 Substituted for “ninety” by Finance Act, 2008. 
396 Words inserted by Finance Act, 2011. 
397 In sub-section (3), for the colon occurring at the end, a full stop substituted and thereafter the proviso omitted by Finance Act, 2025 
398 Sub-section (3A) inserted by Finance Act, 2025. 
399 Subsection (4) inserted by Finance Act, 2003. 
400 Substituted for “Additional Tax” by Finance Act, 2005. 
401 Substituted for “Sales tax” by Finance Act, 2010. 
402 Words “in lieu of the audit report” omitted by Finance Act, 2010. 
Sales Tax Act, 1990 
 
 59   
 
 Provided further that in case the registered person wishes to deposit the 
amount after issuance of show cause notice, he shall deposit the evaded amount of 
sales tax 403[...],404[default surcharge] under section 34, and full amount of leviable 
penalty under se ction 33 along with the revised return and thereafter, the show 
cause notice, shall stands abated.]  
 
 405[(5) The Board may, by notification in the official Gazette, require any 
person or class of persons, for any goods of such description or class, to furn ish 
such summary or details or particulars pertaining to the imports, purchases and 
supplies during any tax period or periods, in such format as may be specified.] 
 
 406[26A. ***] 
 407[26AA. ***] 
 
 408[26AB. Extension of time for furnishing returns.  (1) A registered 
person required to furnish a return under section 26 may apply, in writing, to the 
Commissioner for an extension of time to furnish the return. 
  
 (2) An application under sub -section (1) shall be made by the due date 
for furnishing the r eturn in terms of section 2(9) for the period to which the 
application relates.  
 
 (3) Where an application has been made under sub -section (1) and the 
Commissioner is satisfied that the applicant is unable to furnish the return to which 
the application relates by the due date because of– 
 
(a) absence from Pakistan; 
(b) sickness or other misadventure; or  
(c) any other reasonable cause, 
 
the Commissioner may, by order in writing, grant the 
applicant an extension of time for furnishing the return.  
 
 (4) An extension of  time under sub -section (3) shall not exceed fifteen 
days from the due date for furnishing the return, unless there are exceptional 
circumstances justifying a longer extension of time: 
 
 Provided that where the Commissioner has not granted extension for 
furnishing the return under sub -sections (3) or (4), the Chief Commissioner may 
on an application made by the registered person for extension or further extension, 
as the case may be, grant extension or further extension for a period not exceeding 
                                           
403 Words “etc alongwith the amount of further tax as per provision of sub section (1A) of section 3, if applicable omitted by Finance Act, 2004. 
404 Substituted for words “additional tax” by Finance Act, 2005. 
405 Sub section (5) inserted by Finance Act, 2004. 
406 Section 26 A omitted by Finance Act, 2004. 
407 Section 26AA omitted by Finance Act, 2008. 
408 New section 26AB inserted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 60   
 
fifteen da ys, unless there are exceptional circumstances justifying a longer 
extension of time. 
 
 (5) An extension or further extension of time granted under sub-sections 
(3) or (4), as the case may be, shall not, for the purpose of charge of default 
surcharge under section 34, change the due date for payment of sales tax under 
section 6.] 
 
  
 409[27.  Special Returns. – In addition to the return specified under 
section 26 – 
 
 (a) a person registered 410[ 411[   ] under this Act]  shall furnish special 
return within such date and in such form indicating information such as quantity 
manufactured or produced, purchases made, goods supplied or payment of arrears 
made, etc, for such period as the Board may, by a notification in officia l gazette, 
specify; and 
 
 (b) the 412[commissioner] may require any person whether, registered or 
not, to furnish a return (whether on his own behalf or as an agent or trustee) in a 
prescribed form and such person shall furnish the return not later than the date 
specified in this regard.] 
 
 413[28. Final Return. – If a person applies for de -registration in terms of 
section 21, he shall before such de -registration, furnish a final return to the 
414[commissioner] in the specified form in such manner and at such time as directed 
by the 415[commissioner]]. 
 
 29. Return deemed to have been made. – A return purporting to be 
made on behalf of a person 416[by his duly appointed representative] shall, for all 
purposes, be deemed to have been made by such person or under his authority 
unless proved to the contrary. 
 
 
 
 
 
 
 
 
 
                                           
409 Section 27 substituted by the Finance Ordinance, 2000. 
410 Substituted for words and figure “under section 14” by sales tax (Amendments) Ordinance, 2000, dated September 05, 2000. 
411 Words “or enrolled” omitted by Finance Act, 2004. 
412 Substituted for “Collector” by Finance Act, 2010 
413 Section 28 substituted by Finance Act, 1996. 
414 Substituted for “Collector” by Finance Act, 2010 
415 Substituted for “Collector” by Finance Act, 2010 
416 Words inserted by Finance Act, 1996. 
Sales Tax Act, 1990 
 
 61   
 
Chapter-VI 
 
APPOINTMENT OF 417[OFFICERS OF SALES TAX] &  
THEIR POWERS 
 
 418[30. Appointment of Authorities.– (1) For the purposes of this Act, the 
Board may,  appoint in relation to any area, person or class of persons, any person 
to be – 
 
 (a) a chief commissioner of Inland Revenue; 
   
 (b) a commissioner of Inland Revenue ; 
    
 (c)  a commissioner of Inland Revenue (Appeals); 
   
 (d)  an Additional commissioner of Inland Revenue ; 
   
 (e)  a Deputy commissioner of Inland Revenue; 
   
 419[(ea) District Taxation Officer Inland Revenue;] 
   
 (f)  an Assistant commissioner of Inland Revenue; 
    
 420[(fa) Assistant Director Audit Inland Revenue;]  
   
 (g)  an Inland Revenue Officer; 
   
 (h) a Superintendent Inland Revenue;  
   
 (i)  an Inland Revenue Auditor Officer 421[...];  
   
 422[(ia) an inspector Inland Revenue; and] 
 
(j)an officer of Inland Revenue with any other designation. 
 
 (2) The Chief Commissioner Inland Revenue and Commissioner Inland 
Revenue (Appeals) shall be sub -ordinate to the Board and 
Commissioner Inland Revenue shall be sub -ordinate to the Chief 
Commissioner Inland Revenue.  
 
                                           
417 Any reference to the “Sales Tax Officer” shall be construe as reference to an “Officer of “Inland Revenue” by virtue of section 72 of the Sales Tax 
Act, 1990. 
418 Section 30 substituted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment w as 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 thi s amendment was 
made through Finance (Amendment) Ordinance, 2009, promulgated as Or dinance No. XXII of 2009, dated October 28, 2009, published in the 
Gazette of Pakistan Extraordinary Part I at Pages 229 to 259. Earlier it was substituted by Finance Act, 1996.  
419 Clause (ea) inserted through Finance Act, 2017 
420 Clause (fa) inserted through Finance Act, 2017 
421 Word “and” omitted by Finance Act, 2011. 
422 Clause “(ia)” inserted by Finance Act, 2011 
Sales Tax Act, 1990 
 
 62   
 
 423[(2A) The Chief Commissioners Inland Revenue shall perform their 
functions in respect of such persons or classes of persons or such areas as the Board 
may direct. 
 
 5(2B) The Commissioners Inland Revenue shall perform their functions in 
respect of such persons o r classes of persons or such areas as the Chief 
Commissioner, to whom they are sub-ordinate, may direct.] 
 
 (3) Additional Commissioner Inland Revenue, Deputy Commissioners 
Inland Revenue 424[, District Taxation Officer Inland Revenue], Assistant 
Commissioner Inland Revenue 6[, Assistant Director Audit Inland Revenue], 
Superintendent Inland Revenue, Inland Revenue Audit Officer, Inland Revenue 
Officer 425[, Inspector Inland Revenue], and officer of Inland Revenue with any 
other designation shall be sub-ordinate to the Commissioner Inland Revenue and 
shall perform their functions in respect of such persons or classes of persons or 
such areas as the Commissioners, to whom they are sub ordinate, may direct. 
 
 (4) Deputy Commissioner Inland Revenue 426[, District Taxation Officer 
Inland Revenue], A ssistant Commissioner Inland Revenue 1[, Assistant Director 
Audit Inland Revenue], Superintendent Inland Revenue, Inland Revenue Audit 
Officer, Inland revenue Officer, 427[Inspector Inland Revenue Officer] an officer 
of Inland Revenue with any other designation shall be sub -ordinate to the 
Additional Commissioner Inland Revenue.] 
 
 428[30A. Directorate General (Intelligence and Investigation), Inland 
Revenue.–(1) The Directorate General (Intelligence and Inves tigation) Inland 
Revenue shall consist of a Director General and as many Directors, Additional 
Directors, Deputy Directors and Assistant Directors and such other officers as the 
Board may, by notification in the official Gazette, 429[appoint]. 
 
 (2) The Board may, by notification in the official Gazette,– 
 
 (a) specify the functions and jurisdiction of the Directorate General and 
its officers; and 
 
 (b) confer the powers of authorities specified in section 30 upon the 
Directorate General and its officers.] 
 
          430[30AB. Tax Fraud Investigation Wing Inland Revenue. – (1) There 
shall be established a wing to be known as Tax Fraud Investigation Wing -Inland 
Revenue.  
                                           
423 Sub-sections (2A) & (2B) inserted through Finance Act, 2017 
424 Expressions inserted through Finance Act, 2017 
425 Comma and words inserted by Finance Act, 2011. 
426 Expression inserted through Finance Act, 2017 
427 Comma and words inserted by Finance Act, 2011. 
428 Section 30A substituted by Finance Act, 2018. 
429 Substituted for the word “post” through Finance Act, 2019. 
430 New section inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 63   
 
 
(2)  The functions of the tax fraud Investigation Wing Inland Revenue 
shall be to detect, analyze, investigate, combat and prevent tax fraud.  
 
(3)  The tax fraud Investigation Wing Inland Revenue shall comprise 
Fraud Intelligence and Analysis Unit, Fraud Investigation Unit, Legal Unit, 
Accountants Unit, Digital Forensic and Scene of Crime Unit, Administrative Unit 
or any other Unit as may be notified by the Board through notification in the 
official Gazette.  
 
(4)  The tax fraud Investigation Wing Inland Revenue shall consist of 
a Chief Investigator and as many following officers, as may be notif ied by the 
Board-  
 
(a)  Senior investigators, investigators, Junior investigators or 
any other officer of Inland Revenue with any other 
designation;  
 
(b)  a Senior Forensic Analyst and as many Forensic Analysts 
and Junior Forensic Analysts; and  
 
(c) a Senior Data Analyst and as many Data Analysts and Junior 
Data Analysts.  
 
 (5)  The Board may, by notification in the official Gazette, --  
 
(a)  specify the functions and jurisdiction of the Tax Fraud 
Investigation Wing Inland Revenue and its Units and its 
officers; and  
 
(b)  confer the powers of authorities specified in section 30 
upon the tax fraud Investigation Wing Inland Revenue 
and its officers at clause (a) of sub-section 4.  
 
 (6)  Nothing contained in this section shall prevent the authorities 
appointed under section 3 0 or any other authority or officer conferred with the 
power and functions of authorities appointed under section 30 from conducting 
investigation and prosecution proceedings under Chapter-VII of the Act.] 
 
 431[30B. Directorate General 432[...] Internal Audit.– The Directorate 
General 2[...] Internal Audit shall consist of a Director General and as many 
Directors, Additional Directors, Deputy Directors and Assistant Directors and such 
other officers as the Board, may by notification in the official Gazette, appoint. 
 
                                           
431 Section 30B inserted by Finance Act, 2005. 
432 Words “of inspection and” omitted by Finance Act, 2007. 
Sales Tax Act, 1990 
 
 64   
 
 433[30C. 434[Inland Revenue Services Academy].--The 435[Inland Revenue 
Services Academy] shall consist of a Director General and as many Directors, 
Additional Directors, Deputy Directors and Assistant Directors and such other 
officers as the Board, may by notification in the official Gazette, appoint. 
 
 436[30CA. Directorate General of Digital Initiatives.-- The Directorate 
General of Digital Initiatives shall consist of a Director General and as many 
Directors, Additional Directors, Deputy Directors and Assistant Directors and such 
other officers as the Board may, by notification in the official Gazette, appoint.] 
 
 437[30D. Directorate General of Valuation 438[...].--The Directorate General 
of Valuation 5[...] shall consist of a Director General and as many Directors, 
Additional Directors, Deputy Directors and Assistant Directors and such other 
officers as the Board, may by notification in the official Gazette, appoint. 
 
 439[30DD. Directorate of Post Clearance Audit. – The Directorate of Post 
clearance Audit shall consist of a Director and as many Additional  Directors, 
Deputy Directors, Assistant Directors and such other officers as the Board may, by 
notification in the official Gazette, appoint.] 
440[30DDD. Directorate General of Input Output Co-efficient Organization.- 
The Directorate General of Input Output Coefficient Organization (IOCO)-Inland 
Revenue shall consist of a Director General and as many Directors, Additional 
Directors, Deputy Directors, Assist ant Directors and such other officers as the 
Board may, by notification in the official Gazette, appoint.] 
 
441[30DDDA. Directorate-General of law. - (1) The Directorate -General of law 
shall consist of a Director General and as many Directors, Additional Dire ctors, 
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 power s 
of the Directorate-General of law.] 
 
 442[30E. Powers and Functions of Directorate, etc. – The Board may, by 
notification in the official Gazette, specify the functions, jurisdiction and powers 
of the Directorates General as specified in the preceding sections and their officers 
by notification in the official Gazette.] 
 
 31. Powers.– An officer of 443[Inland Revenue] appointed under section 
30 shall exercise such powers and discharge such duties as are conferred or 
                                           
433 Section 30C inserted by Finance Act, 2005. 
434 Marginal heading substituted by Finance Act, 2022. 
435 Words substituted by Finance Act, 2022. 
436 Section 30CA substituted by Finance Act, 2023 
437 Section 30D inserted by Finance Act, 2005. 
438 Words “and Post Clearance Audit” omitted by Finance Act, 2007. 
439 Section 30DD inserted by Finance Act, 2007. 
440 New section 30DDD added through Finance Act, 2016. 
441 New section 30DDDA added through Tax Laws (Amendment) Act, 2024. 
442 Section 30E inserted by Finance Act, 2005. 
443 Substituted for “sales tax” by Finance Act, 2010 w.e.f June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, 
promulgated as Ordinance No.III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at  pages 23 to 53 and 
Sales Tax Act, 1990 
 
 65   
 
imposed on him under this Act; and he shall also be competent to exercise all 
powers and discharge all duties conferred or imposed upon any officer subordinate 
to him: 
 
 Provided that, notwithstanding anything contained in this Act or the rules, 
the Board may, by general or special order, impose such limitations or conditions 
on the exercise of such powers and discharge of such duties as it deems fit. 
 
 444[32. Delegation of powers. – 445[(1)  The Board or the Chief 
Commissioner, with the approval of the Board, may, by an order and subject to 
such limitations or conditions as may be specified therein, empower by name or 
designation – 
 
  [(a) any Additional Commissioner Inland Revenue or Deputy 
Commissioner Inland Revenue to exercise any of the powers of a 
Commissioner Inland Revenue under this Act; and 
 
 (b) any Deputy Commissioner Inland Revenue or Assistant 
Commissioner Inland Revenue to exercise any of the powers of an 
Additional Commissioner Inland Revenue under this Act;  
 
 (c) any Assistant Commissioner Inland Revenue to exercise any of the 
powers of a Deputy Commissioner Inland Revenue under this Act; 
and 
 
 (d) any other officer of Inland Revenue to exercise any of the powers of 
an Assistant Commissioner Inland Revenue under this Act.] 
 
 446[(2) ***] 
 
 (3) The officer to whom any powers are delegated under this section 
shall not further delegate such powers.] 
 
 447[32A. 448[Audit by Special Audit Panels].    449[(1) The Board may appoint 
as many special audit panels as may be necessary, comprising two or more 
members from the following, – 
 
 (a)  an officer or officers of Inland Revenue; 
 
 (b)  a firm of chartered accountants as defined under the  Chartered 
Accountants Ordinance, 1961 (X of 1961); 
                                           
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, 
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259 
444 Section 32 substituted by Finance Act, 1996. 
445 Sub Section (1) substituted by Finance Act, 2010 w.e.f. June 5, 2010. Earlier clause (a) to (d) substituted by Finance (2) omitted by the Finance Act, 
2010 
446 Sub Section (2) omitted by the Finance Act, 2010. 
447 Section 32A inserted by Finance Act, 1998. 
448 Substituted for the words “Special Audit by Chartered Accountants or Cost Accountants” by Finance Act, 2015 
449 Substituted for sub-section (1) by Finance Act, 2015 
Sales Tax Act, 1990 
 
 66   
 
 
 (c)  a firm of cost and management accountants as defined under the Cost 
and Management Accountants Act, 1966 (XIV of 1966); or  
 
 (d)  any other person as directed by the Board,  
 
to conduct audit of a registered person or persons, including audit of refund claims 
and forensic audit and the scope of such audit shall be determined by the Board or 
the Commissioner Inland Revenue on a case-to-case basis. In addition, the Board 
may, where it considers appropriate, also get such audit conducted jointly with 
similar audits being conducted by provincial administrations of sales tax on 
services.] 
 
 (2) Notwithstanding that records of a registered person have been 
audited by an officer appointed under section 30, the Board or a 450[Commissioner] 
may direct 451[special audit panel] appointed under sub -section (1) to audit the 
records of any registered person. 
 
 (3) 452[Every member of special audit panel] appointed under sub -
section (1), shall have the powers of an officer of 453[Inland Revenue]  under 
sections 25, 37 and 38. 
 
 454[(4) Each special audit panel shall be headed by a chairman who shall be 
an officer of Inland Revenue. 
 
 (5) If any one member of the special audit panel, other than the chairman, 
is absent from conducting an audit, the proceedings of the audit may continue and 
the audit conducted by the special audit panel shall not be invalid or be called i n 
question merely on the ground of such absence. 
 
 (6) The Board may prescribe rules in respect of constitution, procedure 
and working of special audit panel.] 
 
 455[32AA. ***] 
 
 45632B. Appointment of experts and auditors. — (1) The Board or the 
Commissioner may appoint as many experts as it or the Commissioner considers 
necessary for the purposes of this Act, including for the purposes of assistance in 
audit, investigation, litigation or valuation. 
                                           
450 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordi nance, 2010, 
promulgated as Ordinance No. III of 2010 dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, 
published in the Gazette of Pakistan Extraordinary part I at pages 229 to 259. 
451 Substituted for the words “an auditor” by Finance Act, 2015 
452 Substituted for the words “An Auditor” by Finance Act, 2015 
453 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010.The same was made by Finance (Amendment) Ordinance, 2010 , promulgated 
as ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary part I at pages 23 to 53 and this amendment 
was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the 
Gazette of Pakistan Extraordinary Part-I at Pages 229 to 259. 
454 Sub-sections (4), (5) and (6) inserted by Finance Act, 2015. 
455 Section 32 AA omitted by Finance Act, 2008, earlier it was inserted by Tax Laws Amendment Ordinance, 2000, dated may 24, 2000. 
456 Section 32B inserted by Finance Act, 2025 
Sales Tax Act, 1990 
 
 67   
 
 
(2) The Board may appoint as many auditors as it may deem fit, through direct 
engagement or through a third party including a pay roll firm for the purposes of 
this Act, and confer such powers as may be deemed necessary to assist the 
authorities mentioned in clauses (a) to (f) of sub-section (1) of section 30 of this 
Act and clauses (a) to (f) of sub-section (1) of section 29 of the Federal Excise 
Act, 2005, as per the terms, conditions, limitations and restrictions as may be 
prescribed. 
 
Chapter-VII 
 
457[OFFENCES, PENALTIES AND PUNISHMENT] 
 
 [33. Offences, Penalties and Punishment.– 458[...] Whoever commits 
any offence described in column (1) of the Table below shall, in addition to and 
not in derogation of any punishment to which he may be liable under any other 
law, be liable to the penalty mentioned against that offence in column (2) thereof: 
– 
 
TABLE 
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
1. Where any person    
fails to furnish a 
return within the due 
date. 
Such person shall pay a penalty 
of 460[ten] thousand rupees: 
 
Provided that in case a person 
files a return within 461[ten] days 
of the due date, he shall pay a 
penalty of 462[two] hundred 
rupees for each day of default. 
26 
4631A.Where any online 
marketplace, 
payment 
intermediary or 
courier fails to 
furnish prescribed 
Such person shall be liable to 
pay: 
 
(i) Penalty of three lac rupees 
for the first default if he 
fails to furnish the 
26 
                                           
457 Marginal heading substituted by Finance Act, 2025. 
458 Bracket and figure “one” omitted by Finance Act, 2008. 
459 In section 33, in the Table, in column (2), after the expression “Penalties”, the expression “and Punishment” inserted by Finance Act, 2025. 
460 Substituted for the word “five” by Finance Act, 2019.. 
461 Substituted for the word “fifteen” by Finance Act, 2015. 
462 Substituted for the word “one” by Finance Act, 2019. 
463 S. No. 1A and 1B entries relating thereto in columns (1), (2) and (3) inserted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 68   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
monthly statement 
within due date 
prescribed statement fo r 
two consecutive months; 
 
(ii) Penalty of one million 
rupees for each subsequent 
default within one year. 
1B. Where any online 
marketplace, courier 
allow use of its 
services in the course 
of e -commerce by 
unregistered persons   
Such person shall be liable to 
pay: 
 
(i) Penalty of five lac rupees 
for first default; 
(ii)  Penalty of one million 
rupees for each subsequent 
default. 
14 
2. Any person who fails 
to issue an invoice 
when required under 
this Act. 
Such person shall pay a penalty 
of five thousand rupees or three 
per cent of the amount of the tax 
involved, whichever is higher. 
23 
3. Any person who un -
authorizedly issues an 
invoice in which an 
amount of tax is 
specified. 
Such person shall pay a penalty 
of ten thousand rupees or five 
per cent of the amount of t 
he tax involved, whichever is 
higher. 
 
3, 7 and 23 
4. Any person who fails 
to notify the changes 
of material nature in 
the particulars of 
registration of 
taxable activity. 
Such person shall pay a penalty 
of five thousand rupees. 
14 
5. Any person who fails 
to deposit the 
amount of tax due or 
any part thereof in 
the time or manner 
laid down under this 
Act or rules or orders 
made there under. 
Such person shall pay a penalty 
of ten thousand rupees o r five 
per cent of the amount of the tax 
involved, whichever is higher: 
 
Provided that, if the amount of 
tax or any part thereof is paid 
within 464[ten] days from the 
due date, the defaulter shall pay 
3, 6, 7 and 48  
                                           
464 Substituted for the word “fifteen” by Finance Act, 2015. 
Sales Tax Act, 1990 
 
 69   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
a penalty of five hundred rupees 
for each day of default: 
 
Provided further that no penalty 
shall be imposed when any 
miscalculation is made for the 
first time during a year: 
 
Provided further that if the 
amount of tax due is not paid 
even after the expiry of a period 
of sixty days of issuance of the 
notice for such payments by an 
officer of 465[Inland Revenue, 
not below the rank of Assistant 
Commissioner Inland 
Revenue], the defaulter shall, 
further be liable, upon 
conviction by a Special Judge, 
to imprisonment for a term 
which may extend to three 
years, or with f ine which may 
extend to amount equal to the 
amount of tax involved, or with 
both. 
6. Any person who 
repeats erroneous 
calculation in the 
return during a year 
whereby amount of 
tax less than the actual 
tax due is paid. 
Such person shall pay a penalty 
of five thousand rupees or three 
per cent of the amount of the tax 
involved, whichever is higher. 
 
7 and 26 
7. Any person who is 
required to apply for 
registration under this 
Act fails to make an 
application for 
registration before 
making taxable 
supplies. 
Such person shall pay a penalty 
of ten thousand rupees or five 
per cent  of the amount of tax 
involved, whichever is higher: 
 
Provided that such person who 
is required to get himself 
registered under this Act, fails 
14 
                                           
465 Substituted for “Sales tax”, not below the rank of Assistant Collector of sales tax” by Finance Act, 2010 
Sales Tax Act, 1990 
 
 70   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
to get registered within sixty 
days of the commencement of 
taxable activity, he shall, further 
be liable, upon conviction by a 
Special Judge, to imprisonment 
for a term which may extend to 
three years, or with fine which 
may extend to an amount equal 
to the amount of tax involved, or 
with both. 
 
8. Any person who fails 
to maintain records 
required under this 
Act or the rules made 
there under. 
Such person shall pay a penalty 
of ten thousand rupees or five 
per cent  of the amount of tax 
involved, whichever is higher. 
22 and 24 
9. Where a registered 
person who, without 
any reasonable cause, 
in non compliance with 
the provisions of 
section 25, – – 
 
(a) fails to produce the 
record on receipt of 
first notice; 
 
(b) fails  to produce the 
record on receipt of 
second notice; and 
 
(c) fails to produce the 
record on receipt of 
third notice.  
 
such person shall pay a penalty 
of five thousand rupees; 
 
such person shall pay a penalty 
of ten thousand rupees; and 
 
such person shall pay a penalty 
of fifty thousand rupees. 
 
25 
10. Any person who fails 
to furnish the 
information required 
by the Board through 
a notification issued 
under sub-section (5) 
of section 26. 
Such person shall pay a penalty 
of ten thousand rupees. 
 
26 
Sales Tax Act, 1990 
 
 71   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
11. 466[Omitted]   
12. Any person who 
denies or obstructs 
the access of an 
authorized officer to 
the business 
premises, registered 
office or to any other 
place where records 
are kept, or 
otherwise refuses 
access to the stocks, 
accounts or records 
or fails to present the 
same when required 
under section 25, 38 
467[38A or 40B]. 
Such person shall pay a penalty 
of twenty five thousand rupees 
or one hundred per cent of the 
amount of tax involved, 
whichever is higher. 468[Without 
prejudice to above, he shall also 
be liable,] upon conviction by a 
Special Judge, to imprisonment 
for a term which may extend to 
five years, or with fine 469[which 
may extend to an amount equal 
to the amount of tax evaded or 
sought to be evaded ], or with 
both. 
25, 38 , 470[38A 
and 40B] 
 
 
47113. (i) Any person 
who commits or, causes 
to commit   tax fraud as 
defined under sub -
clauses (a), (b), (c), (d), 
(e) or (f) of clause (37) 
of section 2. 
 
 
 
 
 
 
 
 
 
 
 (ii) Any person who 
commits or, causes to 
commit   tax fraud as 
(i) Such person shall be 
liable, upon conviction by 
a Special Judge, to 
imprisonment for a term 
which may extend upto 
five years. Such person 
shall also be liable to pay 
the amount equal to the 
loss of tax caused as 
confirmed by the Special 
Judge from such amount 
reported under sub 
section (11) of section 
37B, including one 
hundred percent penalty 
of tax loss and default 
surcharge under section 
34 of the Act. 
 
2(37) 
                                           
466 S. No. 11, and entries relating thereto omitted by Finance Act, 2025. 
467 Substituted for “or 38A” by Finance Act, 2009 
468Words substituted by Finance Act, 2024. 
469 Words substituted by Finance Act, 2024. 
470 Substituted for “or 38A” by Finance Act, 2009 
471 S. No. 13 and entries relating thereto substituted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 72   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
defined under sub -
clauses (g), (h), (i), (j) or 
(k) of clause (37) of 
section 2 
(ii) Such person shall be liable, 
upon conviction by a 
Special Judge, to 
imprisonment for a term 
which may extend upto 
five years. Such person 
shall also be liable to pay 
the amount equal to the 
loss of tax caused as 
confirmed by the Special 
Judge from such amount 
reported under sub section 
(11) of section 37B, 
including one hundred 
percent penalty of tax loss 
and default surcharge 
under section 34 of the Act. 
47213A. Any person who 
abets or connives 
in committing 
tax fraud as 
defined in 
section 2(37) or 
any offence 
warranting 
prosecution 
under the Act. 
Such person shall be liable, 
upon conviction by a Special 
Judge, to imprisonment for a 
term which may extend to five 
years or with fine which may 
extend to ten million rupees, or 
with both. 
2(1), 2(37), 
50A”; 
14. Where any person 
violates any embargo 
placed on removal of 
goods in connection 
with recovery of tax.  
 
 
 
 
 
Such person shall pay a penalty 
of twenty five thousand rupees 
or ten per cent of the amount of 
the tax involved, whichever is 
higher. 473[Without prejudice to 
above, he shall also be liable], 
upon conviction by a Special 
Judge, to imprisonment for a 
term which may extend to one 
year, or with fine 474[which may 
extend to an amount equal to the 
48 
                                           
472S. No. 13A and entries relating thereto inserted by Finance Act, 2025. 
473 Words substituted by Finance Act, 2024. 
474 Words substituted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 73   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
amount of tax evaded or sought 
to be evaded], or with both. 
15. Any person who 
obstructs the 
authorized officer in 
the performance of 
his official duties. 
Such person shall pay a penalty 
of twenty five thousand rupees 
or one hundred per cent of the 
amount of tax involved, 
whichever is higher. 
31 and General 
16. Any person who fails 
to make payment in 
the manner 
prescribed under 
section 73 of this 
Act.  
Such person shall pay a penalty 
of five thousand rupees or three 
per cent  of the amount of tax 
involved, whichever is higher. 
73 
17. Any person who fails 
to fulfil any of the 
conditions, 
limitations or 
restrictions 
prescribed in a 
Notification issued 
under any of the 
provisions of this 
Act. 
Such person shall pay a penalty 
of five thousand rupees or three 
per cent  of the amount of tax 
involved, whichever is higher. 
 
71 and General 
18. Where any officer of 
475[Inland Revenue] 
authorized to act 
under this Act, acts 
or omits or attempts 
to act or omit in a 
manner causing loss 
to the sales tax 
revenue or otherwise 
abets or connives in 
any such act. 
Such officer of 476[Inland 
Revenue] shall be liable, upon 
conviction by a Special Judge, 
to imprisonment for a term 
which may extend to three 
years, or with fine 477[which 
may extend to an amount equal 
to the amount of tax evaded or 
sought to be evaded], or wi th 
both. 
General 
19. Any person who 
contravenes any of 
the provision of this 
Act 478[or the rules 
Such person shall pay a penalty 
of five thousand rupees or three 
per cent of the amount of tax 
involved, whichever is higher. ] 
General.] 
                                           
475 Words “Sales Tax” substituted for Inland Revenue by Finance (Amended) Ordinance, 2010. 
476 Substituted for “Sales Tax” by Finance Act, 2011 
477 Words substituted by Finance Act, 2024. 
478 Words added through Finance Act, 2016. 
Sales Tax Act, 1990 
 
 74   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
made thereunder] for 
which no penalty 
has, specifically, 
been provided in this 
section. 
479[ 20. *** ]    
480[21. Where any person 
repeats an 
offence for 
which a penalty 
is provided under 
this Act  
Such person shall pay twice the 
amount of penalty provided 
under the Act for the said 
offence  
General. 
22. 481[Omitted]   
482[23. Any person who 
manufactures, 
possesses, 
transports, 
distributes, stores 
or sells 483[goods 
or class of goods 
as specified by the 
Board under sub -
section (1) of 
section 40C] with 
counterfeited tax 
stamps, 
banderoles, 
stickers, labels or 
barcodes or 
without tax 
stamps, 
banderoles, 
stickers, labels or 
barcodes 
 
(i) Such [specified goods] 
shall be liable to outright 
confiscation 484[as may be 
prescribed]  485[***]. Any 
person committing the offence 
shall pay a penalty of twenty -
five thousand rupees or one 
hundred per cent of the amount 
of tax involved, whichever is 
higher. 486[Without prejudice to 
above, he shall also be liable], 
upon conviction by a Special 
Judge, to simple imprisonment 
for a term which may extend to 
three years, or with additional 
fine 487[which may extend to an 
amount equal to the amount of 
tax evaded or so ught to be 
evaded], or with both.  
 
(ii) In case of transport of 
[specified goods] with 
counterfeited tax stamps, 
banderoles, stickers, labels or 
barcodes, or without tax stamps, 
banderoles, stickers, labels or 
40C(2)] 
 
                                           
479 Serial No. 20 omitted by Finance Act, 2008. 
480 Serial No. 21 and 22 inserted by Finance Act, 2006. 
481 S. No. 22, and entries relating thereto omitted by Finance Act, 2025. 
482 S.No. 23 and entries relating thereto in columns (1), (2) and (3) inserted through Finance Act, 2017 
483Expression substituted by Finance Act, 2023  
484 Words inserted by Finance Act, 2024. 
485 Expression omitted by by Finance (Supplementary) Act, 2022. 
486 Words substituted by Finance Act, 2024. 
487 Words substituted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 75   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
barcodes, permanent seizure of 
the vehicle us ed for 
transportation of non -
conforming or counterfeit 
[specified goods]; and  
 
(iii) In case of repeat sale of 
[specified goods] without or 
with counterfeited, tax stamps, 
banderoles, stickers, labels or 
barcodes, the premises used for 
such sale 488[shall be liable to be 
sealed by an officer of Inland 
Revenue in the manner as may 
be prescribed.] 
489[“24. Any person, who 
is integrated for 
monitoring, 
tracking, reporting 
or recording of 
sales, production 
and similar 
business 
transactions with 
the Board or its 
computerized 
system, conducts 
such transactions 
in a manner so as 
to avoid 
monitoring, 
tracking, reporting 
or recording of 
such transactions, 
or issues an 
invoice which 
does not carry the 
prescribed invoice 
number or barcode 
490[or QR code] or 
bears duplicate 
invoice number or 
counterfeit 
Such person shall pay a penalty 
of five hundred thousand rupees 
or two hundred per cent of the 
amount of tax involved, 
whichever is higher. [Without 
prejudice to above, he shall also 
be liable], upon conviction by a 
Special Judge, to simple 
imprisonment for a term which 
may extend to two years, or with 
additional fine which may 
extend to two million rupees, or 
with both. 
 
 492[Notwithstanding 
above, the business 
premises of suc h person 
shall be liable to be sealed 
by an officer of Inland 
Revenue in the manner 
prescribed.] 
 
 
Any person who abets 
commissioning of such offence, 
shall be liable, upon conviction 
by a Special Judge, to simple 
imprisonment for a term which 
may extend to one year, or with 
sub-section (9A) 
of section 3 and 
section 40C. 
                                           
488 Words substituted by Finance Act, 2024. 
489 New serial numbers “24”, “25”, “26” and “27” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 
490 Words added by Finance Act, 2022. 
492 Paragraph under serial number 24 inserted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 76   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
barcode, 491[or QR 
code or defaces the 
prescribed invoice 
number of barcode 
or QR code] or any 
person who abets 
commissioning of 
such offence.   
  
additional fine which may 
extend to two hundred thousand 
rupees, or with both.   
25.  Any person, who is 
required to 
integrate his 
business for 
monitoring, 
tracking, reporting 
or recording  of 
sales, production 
and similar 
business 
transactions with 
the Board or its 
computerized 
system, fails to get 
himself registered 
under the Act, and 
if registered, fails 
to integrate in the 
manner as required 
under law.    
Such person shall be liable to 
pay a penalty up to one million 
rupees, and if continues to 
commit the same offence after a 
period of 493[two] months after 
imposition of penalty as 
aforesaid, his business premises 
494[shall be liable to be sealed by 
an officer of Inland Revenue in 
the manner as may be 
prescribed.] 
 
 
495[***] section 
40C 
496[25A A person 
required to 
integrate his 
business as 
stipulated under 
497[section 23], 
498[or sub -section 
(4) of section 
40C,]  who fails to 
get himself 
registered under 
Such person shall be liable to 
pay: 
(i) penalty of five hundred 
thousand rupees for first 
default; 
(ii) penalty of one million 
rupees for second default 
after fifteen days of order 
for first default; 
(iii) penalty of two million 
rupees for third default 
497[Section 23 ] 
500[and sub -
section (4) of 
section 40C] 
                                           
491 Words added by Finance Act, 2022. 
493 The word substituted by Finance Act, 2020. 
494 Words substituted by Finance Act, 2024. 
495 Expression omitted by by Finance Act, 2022. 
496 Serial number substituted by Finance Act, 2022. 
497 The expression “section 23” substituted by Finance Act, 2025; 
498 Expression inserted by Finance Act, 2024. 
500 Expression inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 77   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
the Act, and if 
registered, fails to 
integrate in the 
manner as required 
under the law and 
rules made 
thereunder 499[or 
fails to issue 
electronic invoices 
after integration.] 
after fifteen days of order 
for second default; 
(iv) penalty of three million 
rupees for fourth default 
after fifteen days of order 
for third default:  
Notwithstanding above, the 
business premises of such 
person shall be liable to be 
sealed by an officer of Inland 
Revenue in the manner 
prescribed: 
 Provided that if the 
retailer integrates his business 
with the Board’s Co mputerized 
System before imposition of 
penalty for second default, 
penalty for first default shall be 
waived by the Commissioner.] 
501[25AA. Any licensed 
integrator who is 
authorized to provide 
electronic invoicing 
system for integration of 
registered persons fails 
to integrate such 
registered persons in the 
manner as required 
under this Act and rules 
made thereunder. 
Such person shall be liable to 
pay penalty of rupees one 
million or one percent  of the 
total value of the sales 
suppressed, whichever is 
higher. 
sub-section (5) 
of section 40C.] 
50225B. Where any 
person fails to generate 
an e -bilty, or tampers 
with, misuses, or forges 
such document in 
contravention of sub -
section (6) of section 
40C. 
Such person shall be liable to 
pay penalty of fifty thousand 
rupees and recovery of any tax 
evaded through such 
contravention 
sub-section (6) 
of 40C.”.  
                                           
499 the words “or fails to issue electronic invoices after integration” added by Finance Act, 2025. 
501 Serial number 25AA inserted by Finance Act, 2024. 
502 S. No. 25B and entries relating thereto inserted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 78   
 
Offences Penalties 459[and Punishment] Section of the 
Act to which 
offence has 
reference 
(1) (2) (3) 
26.   Any person, being a 
manufacturer or 
importer of an item 
which is subject to 
tax on the basis of 
retail price, who 
fails to print the 
retail price in the 
manner as 
stipulated under 
the Act.  
Such person shall pay a penalty 
of ten thousand rupees or fi ve 
per cent  of the amount of tax 
involved, whichever is higher: 
 
Further, such goods shall also 
be liable to confiscation 503[as 
may be prescribed.] However, 
the adjudication authority, after 
such confiscation, may allow 
redemption of such goods on 
payment of fine which shall not 
be less than twenty percent of 
the total retail price of such 
goods. 
 
sub-section (27) 
of section 2 and 
clause (a) of sub-
section (2) of 
section 3. 
27. Any person, being 
owner of the 
goods, which are 
brought to 
Pakistan in 
violation of 
section 40D. 
Such person shall pay a penalty 
of ten thousand rupees or five 
per cent  of the amount of tax 
involved, whichever is higher: 
 
Further, such goods shall also 
be liable to confiscation 504[as 
may be prescribed.]. However, 
the adjudication authority, after 
such confiscation, may allow 
redemption of such goods on 
payment of fine which shall not 
be less than twenty percent of 
value, or retail price in case of 
items falling in Third Schedule, 
of such goods. 
 
section 40D”;] 
505[28.  Any person who 
is required      to 
share information 
under section 
56AB, fails to do 
so in the manner as 
required under the 
law 
Such person shall pay a penalty 
of twenty five thousand rupees 
for first default and fifty 
thousand rupees for each 
subsequent default  
56AB] 
 
506[33A***].  
 
                                           
503 Words inserted by Finance Act, 2024. 
504 Words inserted by Finance Act, 2024. 
505 New serial number 28 added by Finance Act, 2020. 
506 Section 33A omitted by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 79   
 
 507[34. Default Surcharge.– (1) Notwithstanding the provisions of section 
11, if a registered person does not pay the tax due or any part thereof, whether 
wilfully or otherwise, in time or in the manner specified under this Act, rules or 
notifications issued thereunder or claims a t ax 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) 508[...] the p erson liable to pay any amount of tax or charge or the 
amount of refund erroneously made, shall pay default surcharge at 
the rate of 509[twelve percent per annum or KIBOR plus three percent 
per annum, whichever is higher ], of the amount of tax due or the 
amount of refund erroneously made; 510[and] 
 
 511[(b) ***] 
 
 (c) in case, the default is on account of tax fraud, the person who has 
committed tax fraud shall pay default surcharge at the rate of two per 
cent per month, of the amount of tax evaded or the amount of refund 
fraudulently claimed, till such time the entire liability including the 
amount of default surcharge is paid. 
 
 (2) For the purpose of calculation of default surcharge, –  
 
 (a) in the case of inadmissible input tax credit or refund, the period of 
default shall be reckoned from the date of adjustment of such credit 
or, as the case may be, refund is received; and 
  
 (b) in the case of non-payment of tax or part thereof, the period of default 
shall be reckoned  from the 16 th day of a month (following the due 
date of the tax period to which the default relates) to the day 
preceding the date on which the tax due is actually paid. 
 
 Explanation.– For the purpose of this section tax due does not include the 
amount of penalty. 
 
                                           
507 Section 34 substituted by Finance Act, 2005. Earlier it was also substituted by Finance Act, 1996. 
508 Words and comma “for the first six months of default,” omitted by Finance Act, 2008. 
509 Words twelve substituted by Finance Act, 2018. 
510 Word inserted by Finance Act, 2008.  
511 Clause (b) omitted by Finance Act, 2008. 
Sales Tax Act, 1990 
 
 80   
 
 512[34A. Exemption from penalty and  513[default surcharge ].--The 
Federal Government may, by a notification in the official Gazette, or the 514[Board] 
by a special order published in Gazette for reasons to be recorded in writing, 
exempt any person or class of persons from payment of the whole or part of the 
penalty and 515[default surcharge] imposed under sections 33 and 34 subject to such 
conditions and limitations as may be specified in such notification or, as the case 
may be, special order.] 
 
 516[35. ***] 
 
 517[35A. ***] 
 
 518[36. ***] 
 
 37. Power to summon persons to give evidence and produce 
documents in inquiries under the Act .– (1) Any officer of 519[Inland Revenue] 
shall have powers to summon any person whose attendance he considers necessary 
either to tender evidence or to produce documents or any other thing in any inquiry 
which such officer is making for any of the purposes of this Act. 
 
 (2) Any person summoned under sub-section (1) shall be bound to attend 
either in person or by an authorised agent, as the officer of 4[Inland Revenue] may 
direct; 
 
 Provided that a person who is exempted from personal appearance in a 
court under section 132 and 133 of the Code of  Civil Procedure (Act V of 1908), 
shall not be required to appear in person. 
 
 (3) Any inquiry before an officer of 520[Inland Revenue] shall be deemed 
to be a judicial proceeding within the meaning of section 193 and 521[228] of the 
Pakistan Penal Code (Act XLV of 1860). 
 
 522(4) For the purpose of an inquiry under this Act, the officer of Inland 
Revenue shall have the powers of a civil court trying a suit under the Code of Civil 
                                           
512 Section 34A substituted by Finance Ordinance 2001. Earlier it was inserted by Sales Tax (Amendment) Act, 1999 which comes into force from the 
first day of December, 1998. Earlier the same was amendment was made by Sales Tax (Second Amendment) Ordinance, 1988, dated 01-12-1998. 
513 Substituted for “additional tax” by Finance Act, 2005 
514 Substituted for “Central Board of revenue” by Finance Act, 2007 
515 Substituted for “additional tax” by Finance Act, 2005 
516 Section 35 omitted by Finance Act, 1996. 
517 Section 35A omitted by Finance Act, 1996. Earlier it was inserted by Finance Act, 1992. 
518 Section 36 omitted by Finance Act, 2012. Earlier it was substituted by Finance Act, 1996. Before this it was substituted by the Finance Act, 1994. 
519 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
520 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
521 Substituted for the figure “223” by Finance Act, 1994 
522 Sub-section (4) inserted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 81   
 
Procedure, 1908 (Act No. V of 1908), in respect of the following matters, 
namely:— 
 
(a) summoning and enforcing the attendance of any person and 
examining him on oath; and 
 
(b) requiring the discovery and production of documents and 
receiving evidence on affidavits. 
  
 52337A. Power to inquire, investigate offences warranting prosecution 
under this Act and Arrest of a person.-   (1) Notwithstanding anything contained 
in Section 11E of this Act, an officer of Inland Revenue not below the rank of 
assistant commissioner or any other officer authorized by the Board in this behalf 
on the basis of mat erial evidence pointing to the commission of tax fraud or an 
offence warranting prosecution under this act may initiate an inquiry upon 
approval by the Commissioner.  
 
(2) For the purpose of an inquiry under this Act, the officer of Inland 
revenue shall have the powers of a civil court trying a suit under the Code of Civil 
Procedure,1908(Act No. V of 1908), in respect of the following matters, namely: 
— 
 
(a) summoning and enforcing the attendance of any person 
and examining on oath; and 
 
(b) requiring the discovery and production of documents and 
receiving evidence on affidavits. 
(3) The officer of inland revenue shall complete the inquiry while 
exercising the powers under the provisions of section 37, 38, 38A, 38B, 40 or any 
other section of the Act, wherever required within six months. 
 
(4) During inquiry proceedings, the officer of inland revenue shall 
give an opportunity of being heard to the person whose actions alleged to have 
caused tax fraud warranting prosecution under this Act, confronting the person the 
details of tax fraud committed or caused to be committed by such person for 
explanation. 
 
(5) The officer of inland revenue shall submit inquiry report along 
with reasons to be recorded in writing indicating the amount involved in tax fraud 
worked out as a result of such inquiry to the Commissioner to obtain prior approval 
for investigation or the closure of inquiry without any further investigation. 
 
(6) The Commissioner, on the basis of inquiry report under sub -
section (5) and after recording reasons in writing, shall either — 
 
                                           
523 Section 37A and 37B substituted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 82   
 
(i) approve initiation of investigation, or 
 
(ii) require the officer of Inland Revenue to submit such 
further information or documents as he may direct for his 
decision; or 
 
(iii) close the inquiry by rejecting the report or accepting  the 
report, as the case may be. 
 
(7) After approval of investigation under sub -section (6), the officer 
of inland revenue shall complete investigation within three months and prepare 
investigation report for submission before the competent court. 
 
(8) The three-member committee notified by the Chairman, may 
authorize the Commissioner to issue warrant of arrest of a person, if it is satisfied 
on the basis of facts brought before it, that  
   
(a) the tax fraud falls within the ambit of sub-clauses (a), (b), 
(c), (d), (e) and (f) of clause (37) of section 2; 
(b) the amount involved in tax fraud exceeds fifty million 
rupees; and 
 
(c) it has been established during the course of investigation 
by the Inquiry Officer that — 
 
(i) the accused is intentionally or willfully not 
joining the investigation after three duly served 
notices; 
 
(ii) the accused is attempting to abscond; or 
 
(iii) there are sufficient grounds that the accused 
would temper with the evidence. 
 
(9) Notwithstanding anything contained in sub-section (8), the officer 
of inland revenue may arrest a person alleged to have committed a tax fraud after 
obtaining an arrest warrant from the Special Judge in a case of a fraud falling within 
the ambit of the subclauses of clause (37) of section 2 during the  course of 
investigation if:- 
 
(i) the accused is intentionally or willfully not 
joining the investigation after three duly served 
notices; 
 
(ii) the accused attempting to abscond; or 
 
Sales Tax Act, 1990 
 
 83   
 
(iii) there are sufficient grounds that the accused 
would temper with the evidence. 
(10) Where the person suspected of tax fraud or any offence warranting 
prosecution under this Act is a company, every director or officer of that company 
whom the officer of inland revenue has reason to believe is personally responsible 
for actions of the company contributing the tax fraud or any offence warranting 
prosecution under this Act shall be liable to arrest; provided that any arrest under 
this sub-section shall not absolve the company from the liabilities of payment of 
tax, default surcharge and penalty imposed under this Act. 
 
(11) Notwithstanding anything contained in this Act, where any person 
has committed a tax fraud or any offence warranting prosecution under this Act, 
the Commissioner may, either before or after the inquiry or i nvestigation, 
compound the offence if such person pays the amount of tax evaded or sought to 
be evaded as determined in the inquiry or the investigation along with default 
surcharge and penalty as provided under this Act. 
 
(12) Any person accused of an offence who is arrested under this Act 
shall at the time of arrest be informed of the grounds of arrest in writing on the 
basis of which he has been arrested.  
 
(13) All arrests made under this Act shall be carried out in accordance 
with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V of 
1898): 
 
Provided that no arrest under this section shall be made before the 
completion of inquiry under sub-section (1) of this section. 
 
(14) The accused arrested may approac h the competent court for his 
release on bail under the provisions contained in sections 497 and 498 of the Code 
of Criminal Procedure, 1898 (Act V of 1898). 
 
(15) The purpose of prosecution under the provisions of sections 37A 
and 37B of this Act shall remain to — 
 
(a) create sufficient deterrence against tax fraud; and  
 
(b) provide for retribution for commission of tax fraud.; 
 
  37B. Procedure to be followed on arrest of a person. - (1) Where an 
officer of Inland Revenue arrests a person under Section 37A, he shall immediately 
intimate the fact of the arrest of that person to the Special Judge who may direct 
such Officer to produce that person at such time and place and on such date as the 
Special Judge considers expedient and such Officer shall act accordingly. 
 
(2) Notwithstanding anything contained in the sub -section (1), any 
person arrested under this Act shall be produced before the Special Judge or, if 
Sales Tax Act, 1990 
 
 84   
 
there is no Special Judge within a reasonable distance, to the nearest Judicial 
Magistrate, within twenty-four hours of such arrest, excluding the time necessary 
for the journey from the place of arrest to the Court of the Special Judge or, as the 
case may be, of such Magistrate. 
 
(3) Where a person is produced under sub -section (2) before the 
Special Judge, he may, on the request of such person, after perusing the record, if 
any and after giving the prosecution an opportunity of being heard, admit him to 
bail on his executing a bon d, with or without sureties, or refuse to admit him to 
bail and direct his detention at such place as he deems fit:  
  
 Provided that nothing herein contained shall preclude the Special Judge 
from cancelling the bail of any such person at a subsequent stage if, for any reason, 
he considers such cancellation necessary, but before passing such order he shall 
afford such person an opportunity of being heard, unless for reasons to be recorded 
he considered that the affording of such opportunity shall defeat the  purposes of 
this Act. 
 
(4) When such person is produced under sub -section (2) before a 
Judicial Magistrate, such Magistrate may, after authorising his detention in such 
custody at such place and for such period as he considers necessary or proper for 
facilitating his earliest production before the Special Judge, direct his production 
before the Special Judge on a date and time to be fixed by him or direct such person 
to be forthwith taken to, and produced before, the Special Judge and he shall be so 
taken. 
 
(5) Nothing in sub -section (3) or sub -section (4) shall preclude the 
Special Judge or the Judicial Magistrate from remanding any such person to the 
custody of an officer of Inland Revenue] holding investigation against that person 
if such officer makes a  request in writing to that effect, and the Special Judge or 
the Judicial Magistrate, after perusing the record, if any, and hearing such person, 
is of the opinion that for the completion of inquiry or investigation it is necessary 
to make such order: 
 
Provided that in no case the period of such custody shall exceed fourteen 
days. 
 
(6) When any person is arrested under this Act, an officer of Inland 
Revenue shall record the fact of arrest and other relevant particulars in the register 
specified in sub-section (10) and shall immediately proceed to investigate into the 
charge against such person and if he completes the investigation within twenty -
four hours of his arrest, excluding the time necessary for journey as aforesaid, he 
may, after producing such person before the Special Judge or the nearest Judicial 
Magistrate, make a request for his further detention in his custody. 
 
(7) While holding an investigation under sub-section (6), an officer of 
Inland Revenue shall exercise the same powers as are exercisable by an officer in 
Sales Tax Act, 1990 
 
 85   
 
charge of a police station under the Code of Criminal Procedure, 1898 (Act V of 
1898), but such officer shall exercise such powers subject to the foregoing 
provisions of this section while holding an investigation under this Act. 
 
(8) If an officer of Inland Revenue, after holding an investigation as 
aforesaid, is of the opinion that there is no sufficient evidence or reasonable ground 
for suspicion against such person, he shall release him on his executing a bond, 
with or without suretie s, and shall direct such person to appear, as and when 
required, before the Special Judge, and make a report to the Special Judge for the 
discharge of such person and shall make a full report of the case to his immediate 
superior. 
 
(9) The Special Judge to  whom a report has been made under sub -
section, (8) may, after the perusal of record of the investigation, and hearing the 
prosecution, agree with such report and discharge the accused or, if he is of the 
opinion that there is sufficient ground for proceedings against such person, proceed 
with his trial and direct the prosecution to produce evidence. 
 
(10) An officer of Inland Revenue empowered to hold investigation 
under this section shall maintain a register to be called "Register of Arrests and 
Detentions" in the prescribed form in which he shall enter the name and other 
particulars of every person arrested under this Act, together with the time and date 
of arrest, the details of the information received, the details of things, goods or 
documents, recover ed from his custody, the name of the witnesses and the 
explanation, if any, given by him and the manner in which the investigation has 
been conducted from day to day; and, such register or authenticated copies of its 
aforesaid entries shall be produced bef ore the Special Judge, whenever such 
Officer is so directed by him. 
 
(11) After completing the investigation, an officer of Inland Revenue 
shall, as early as possible, submit to Special Judge a report in the same form and 
manner in which the officer in charge of a police station submits a report, before a 
court. 
 
(12) Magistrate of the first class may record any statement or 
confession during investigation under this Act, in accordance with the provisions 
of Section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898). 
 
 (13) Without prejudice to the foregoing provisions of this section, 
Board, with the approval of the Federal Minister-in-charge, may, by notification in 
the official Gazette, authorize any other officer working under the Board to 
exercise the powers and perform the functions of an officer of Inland Revenue 
under this section, subject to such conditions, if any, that it may deem fit to impose. 
 
Sales Tax Act, 1990 
 
 86   
 
 524[37C. Special Judges.– (1) The Federal Government may by notification 
in the official Gazette, appoint as many Special Judges as it considers necessary 
and, where it appoints more than one Special Judge, it shall specify in the 
notification the headquarter of each Special Judge and the territorial limits within 
which he shall exercise jurisdiction under this Act. 
 
 (2) No person shall be appointed as a Special Judge unless he is or has 
been a Sessions Judge.]  
 
 525[37D. Cognizance of Offences by Special Judges. – (1) Notwithstanding 
anything contained in this Act or any other law for the time being in force, a Special 
Judge may, within the limits of his jurisdiction, take cognizance of any offence 
punishable under this Act:     
 (a) Upon a report in writing made by an officer of Inland Revenue or by 
any other  officer especially authorized in this behalf by the Federal 
Government; or    
 
 (b) Upon receiving a complaint or information of facts constituting such 
offence made or communicated by any person; or 
 
 (c) Upon his own knowledge acquired during any proceeding before him 
under this act or under any other law for the time being in force. 
 
 (2)  Upon the receipt of report under clause (a) of sub -section (1), the 
Special Judge shall proceed with trial of the accused. 
 
 (3) Upon the receipt of a complaint or information under clause (b), or 
acquired in the manner referred to in clause (c) of sub-section (1), the Special Judge 
may, before issuing a summon or warrant for appearance of the person complained 
against, hold a preliminary inquiry for the purpose of ascertaining the truth or 
falsehood o f the complaint, or direct any magistrate or any officer of Inland 
Revenue or any police officer to hold such inquiry and submit a report, and such 
Magistrate or officer shall conduct such inquiry and make report accordingly. 
 
  (4)  If, after conducting s uch inquiry or after considering the report of 
such Magistrate or officer, the Special Judge is of the opinion that– – 
 
 (a)  there is no sufficient ground for proceeding, he may dismiss the 
complaint, or 
 
 (b)  there is sufficient ground for proceeding, he may proceed against the 
person complained against in accordance with law. 
 
                                           
524 Section 37C inserted by Finance Ac, 2010 earlier a different section 37C was omitted by Finance Act, 2005 which was inserted by Finance Act, 1997. 
525 Section 37D to 371 inserted by Finance Act, 2010. 
Sales Tax Act, 1990 
 
 87   
 
 (5) A special Judge or a Magistrate or an officer holding inquiry under 
sub-section (3) may hold such inquiry, as early as possible, in accordance with the 
provision of section 202 of the Code of Criminal Procedure, 1898 (Act V of 1898). 
 
 37E. Special Judge, etc. to have exclusive jurisdiction. – 
Notwithstanding anything contained in this Act or in any other law for the time 
being in force,– 
 
 (a) no court other than the Special Judge having jurisdiction, shall try an 
offence punishable under this Act; 
 
 (b) no other court or officer, except in the manner and to the extent 
specifically provided for in this Act, shall exercise any power, or 
perform any function under this Act; 
 
 (c) no court, other than the High Court, shall entertain, hear or decide 
any application, petition or appeal under chapters XXXI and XXXII 
of the Code of Criminal Procedure, 1898 (Act V of 1898), against or 
in respect of any order or direction made under this Act; and 
 
 (d) no court, other than the Special Judge or the High Court, shall 
entertain any application or petition or pass any order or give any 
direction under chapters XXXVII, XXXIX, XLIV or XLV of the 
aforesaid Code.] 
 
 37F.  Provisions of Code of C riminal 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 writin g 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 
Sales Tax Act, 1990 
 
 88   
 
Government, that such transfer m ay 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 Feder al 
Government, the Board, the Commissioner or Director of Intelligence and 
Investigation or any other officer authorized in this behalf by the Board, aggrieved 
by any order passed or decision made by a Special Judge under this Act or under 
the Code of Crim inal Procedure, 1898 (Act V of 1898), may, subject to the 
provisions of Chapters XXXI and XXXII of the said Code, within Sixty days from 
the date of the order or decision, prefer an appeal to the High Court. 
 
 (2) Except as otherwise provided in sub-section (1), the provisions of the 
Limitation Act, 1908 (IX of 1908), shall apply to an appeal preferred under sub -
section (1).] 
 
 526[38. Authorised officers to have access to premises, stocks, accounts 
and records – (1) Any officer authorised in this behalf by t he Board 527[or the 
Commissioner 528[***]] shall have free access 529[including real-time electronic 
access] to business or manufacturing premises, registered office or any other place 
where any stocks, business records or documents required under this Act are kept 
or maintained belonging to any registered person or a person liable for registration 
or whose business activities are covered under this Act or who may be required for 
any inquiry or investigation in any tax fraud committed by him or his agent or any 
other person; and such officer may, at any time, inspect the goods, stocks, records, 
data, documents, correspondence, accounts and statements, utility bills, bank 
statements, information regarding nature and sources of funds or assets with which 
his busines s is financed, and any other records or documents, including those 
which are required under any of the Federal, Provincial or local laws maintained 
in any form or mode and may take into his custody such records, statements, 
diskettes, documents or any part thereof, in original or copies thereof in such form 
as the authorised officer may deem fit against a signed receipt. 
 
                                           
526 Section 38 Substituted by Finance Act, 1996. 
527 Words inserted by Finance Act, 2010 w.e.f. June 5, 2010.  
528 The words “or the Collector” were omitted by Finance Act, 2009. 
529 Words inserted by Finance Act, 2020. 
Sales Tax Act, 1990 
 
 89   
 
 (2) The registered person, his agent or any other person specified in sub-
section (1) shall be bound to answer any question or furnish s uch information or 
explanation as may be asked by the authorised officer. 
 
 (3) The department of' direct and indirect taxes or any other Government 
department, local bodies, autonomous bodies, corporations or such other 
institutions shall supply requisite  information and render necessary assistance to 
the authorised officer in the course of inquiry or investigation under this section.] 
 
 530[(4) For the purpose of sub-section (1), the Board may make rules relating 
to electronic real-time access for audit or a survey of persons liable to tax.] 
 
 531[38A. Power to call for information. — The 532[Commissioner] may, 
by notice in writing, require any person, including a banking company, to furnish 
such information or such statement in connection with any investigation or inquiry 
in cases of tax fraud, as may be specified in such notice 533[:]] 
 
 534[Provided that the 535[Commissioner] may require any regulatory 
authority to provide information concerning the licenses and authorizations issued 
by it.] 
 
 536[38B.  Obligation to produce documents and provide 
information.– (1) Notwithstanding anything contained in this Act or any other law 
for the time being in force, any person required to maintain the record under the 
Act, on demand by an officer, not below the rank of 537[an Assistant] 
538[Commissioner Inland Revenue] , by notice in writing, as and when specified in 
the notice, shall,– 
 
 (a) produce for examination, such documents or records which the 
officer of 539[Inland Revenue] considers necessary or relevant to the 
audit, inquiry or investigation under the Act; 
 (b) allow t he officer of 540[Inland Revenue]  to take extracts from or  
copies of such documents or records; and 
 
                                           
530 New sub-section (4) inserted by Finance Act, 2020. 
531 Section 38A inserted by Finance Act, 2004. 
532 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendmen t) Ordinance, 2010, 
promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 
259. 
533 Substituted for full stop by Finance Act, 2007 
534 Proviso inserted by Finance Act, 2007. 
535 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010 
536 Section 38B inserted by Finance Act, 2006. 
537 Substituted for “a Deputy” by Finance Act, 2011 
538 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 
539 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance (Amendment) Ordinanc e, 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the Gazette of Pakistan Extra Ordinary Part I at pages 23 to 53 and 
this amendment was made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009 
published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
540 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 
Sales Tax Act, 1990 
 
 90   
 
 (c)  appear before the officer of 541[Inland Revenue]  and answer any 
question put to him concerning the documents and records relating 
to the audit or inquiry or investigation referred to in clause (a) above. 
 
 (2) An officer of 542[Inland Revenue] conducting an audit, inquiry or, as 
the case may be, an investigation under the Act, may require in writing any person, 
department, company or organization to furnish such information as is held by that 
person, department, company or organization, which, in the opinion of the officer 
of 543[Inland Revenue], is relevant to such audit, inquiry or investigation. 
 
 (3) The Board may require, in writing, any person, department, company 
or organization, as the case may be, to provide any information or data held by that 
person, department, company or organization, which, in the opinion of the Board, 
is required for purposes of formulation of policy or administering the Customs, 
Sales Tax, Federal Excise or Income Tax. 
 
 (4) Every person, department, company or organization shall furnish the 
information requisitioned by the Board or the officer of Sales Tax under sub -
section (2) or (3), within the time specified in the notice issued by the Board or, as 
the case may be, the officer of 544[Inland Revenue].] 
 
 545(5) Notwithstanding anything contained in any other law for the time 
being in force, the Commissioner may, by notice in writing, require any Internet 
Service Providers, Telecommunication Companies and Pakistan 
Telecommunication Authority, to furnish subscriber's information pertaining to the 
Internet Protocols in connection with any inquiry or investigation in cases of tax 
fraud, as may be specified in such notice. 
 
 546[39.  ***] 
 
 547[40. Searches under warrant. – (1) Where any officer of 548[Inland 
Revenue] has reason to believe that any documents or things which in his opinion, 
may be useful for, or relevant to, any proceedings under this Act are kept in any 
place, he may after obtaining a warrant from the magistrat e, enter that place and 
cause a search to be made at any time. 
 
 (2) The search made 549[in his presence] under sub -section (1) shall be 
carried out in accordance with the relevant provisions of the Code of Criminal 
Procedure, 1898 (V of 1898).] 
 
                                           
541 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 
542 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 
543 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 
544 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 
545 Sub-section (5) inserted by Finance Act, 2025. 
546 Section 39 omitted by Finance act, 1996. 
547 Section 40 substituted by Finance Act, 2004. 
548 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010  
549 The word and comma, inserted by the Finance Act, 2005 
Sales Tax Act, 1990 
 
 91   
 
 550[40A. ***] 
 
 551[40B. Posting of 6[Inland Revenue] Officer.– Subject to such conditions 
and restrictions, as deemed fit to impose, the 552[Board],  553[omitted..] may post 
Officer of 6[Inland Revenue] to the premises of registered person or class of such 
persons to monitor production, sale of taxable goods and the stock position 554[.] 
555[omitted..] 
 
 556[40C. Monitoring or Tracking by Electronic or other means. –  (1) 
Subject to such conditions, restrictions, and procedures, as it may being fit to 
impose or specified, the Board may, by notification in the official Gazette, specify 
any registered person or class of registered persons or any good or class of goods 
in respect of which monitoring or tracking of production, sales, clearances, stocks 
or any other related activity may be implemented through electronic or other means 
as may be prescribed 
 
 (2) From such date as may be prescribed by the Board, no taxable goods 
shall be removed or sold by the manufacturer or any other person without affixing 
tax stamp, band role stickers, labels, 557[bar code 558[production monitoring, video 
analytics,] etc. in any such form, style and manner as may be prescribed by the 
Board in this behalf.]  
 
 559[(3) Such tax stamps, banderols, stickers, labels, barcodes 560[monitoring 
equipment] etc., shall be acquired by the registered person referred to in sub -
section (2) from a licensee appointed by the Board for the purpose, against price 
approved by the Board, which shall include the cost of equipment installed by such 
licensee in the premises of the said registered person.] 
 
 561[(4)  Notwithstanding anything contained in this Act or any other law 
for the time being in force, the provisions of section 83C of the Customs Act, 1969 
(IV of 1969) shall mutatis mutandis apply.; and 
 
(5)  562[Omitted]  
 
563[40D. Provisions relating to goods supplied from tax-exempt areas.-(1) 
The conveyance carrying goods supplied from the tax exempt areas, shall be 
accompanied by such documents in respect of the goods carried as may be 
prescribed under rules.  
                                           
550 Section 40A omitted by Finance Act, 2006. 
551 Section 40B inserted by Finance Act, 2003. 
552 Substituted for “Central Board of revenue” by Finance Act, 2007 
553 Words “or Chief Commissioner” omitted by Finance Act, 2018. 
554 Colon omitted and full stop inserted by Finance Act, 2018. 
555 Proviso and explanation omitted by Finance Act, 2018. 
556 Section 40C inserted by Finance Act, 2013. 
557 Word and comma inserted by Finance Act, 2015 
558 After the expression “bar codes,”, the expression “production monitoring, video analytics,” inserted by Finance Act, 2025. 
559 Sub-section (3) added by Finance Act, 2015. 
560 After the expression “bar codes,”, the expression “monitoring equipment” inserted by Finance Act, 2025. 
561 Sub-sections (4) substituted by Finance Act, 2025. 
562 Sub-sections (5) omitted by Finance Act, 2025. 
563 New Section “40D” inserted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 
Sales Tax Act, 1990 
 
 92   
 
 
 (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 t he prescribed documents or any discrepancy in 
such documents, the goods so carried shall be seized along with the vehicle 
carrying the goods by the officer as aforesaid under proper acknowledgment.  
 
 (4) The notices to the owner of the goods and the vehicle to show cause 
against imposition of penalty shall be issued within fifteen days of the seizure as 
aforesaid. 
 
 (5) For the purposes of this section, the expression “tax -exempt areas” 
means Azad Jammu and Kashmir, Gilgit-Baltistan, 564[Border Sustenance Markets 
and] Tribal Areas as defined in Article 246 of the Constitution of the Islamic 
Republic of Pakistan and such other areas as may be prescribed.”;] 
 
 565[40E. Licensing of brand name.- (1) Manufacturers of the specified 
goods shall be required to obtain brand licence for each brand or stock keeping unit 
(SKU) in such manner as may be prescribed by the Board.  
 
 (2) Any specified brand and SKU found to be sold without obtaining a 
licence from the Board shall be deemed counterfeit goods and liable to outright 
confiscation and destruction in the prescribed manner and such destruction and 
confiscation shall be without prejudice to any other penal action which may be 
taken under this Act.]   
 
     
 
 566[41. *** 
 
 42. ***] 
 
 
 
                                           
564 Expression inserted by Finance Act, 2021. 
565 New section 40E inserted by Finance Act, 2021.  
566 Sections 41 and 42 omitted by Finance Act, 1996 
Sales Tax Act, 1990 
 
 93   
 
Chapter-VIII 
 
567[APPEALS] 
 
 568[43.  *** 
 
 569[43A. Omitted] 
 
 44. ***] 
 
 570[45. ***] 
 
 571[45A. Power of the Board 572[and 573[Commissioner]] to call for 
records.-- (1) The Board may, of its own motion 574[, or otherwise] call for and 
examine the record of any departmental proceedings under this Act or the rules 
made there under for the purpose of satisfying itself as to the legality or propriety 
of any decision or order passed therein by an Officer of 575[Inland Revenue], it may 
pass such order as it may think fit: 
 
 Provided that no order imposing or enhancing any penalty or fine requiring 
payment of a greater amount of [Sales Tax] than the originally levied shall be 
passed unless the person affected by such  order has been given an opportunity of 
showing cause and of being heard. 
 (2) No proceeding under 576[this section] shall be initiated in a case 
where an appeal under Section 577[45B] or Section 46 is pending. 
 
 (3) No order shall be made under this Section after the expiry of 578[five] 
years from the date of original decision or order of the sub-ordinate officer referred 
to in sub-section (1). 
 
 579[(4) The 580[Commissioner] may, suo moto,  call for and examine the 
record o f any proceeding under this Act or the rules made thereunder for the 
purpose of satisfying himself as to the legality or propriety of any decision or order 
passed by an officer of 581[Inland Revenue] subordinate to him, and pass such order 
as he may deem fit.]] 
                                           
567 Heading  of chapter Adjudication  substituted for cases by finance act 1996 
568 Sections 43 and 44 omitted by Finance Act, 1996 
569 New section 43A added through Tax Laws (Amendment) Act, 2024. 
570 Section 43A omitted by Finance Act, 2025. 
571 Section 45A added by Finance Act, 1993. 
572 Substituted for “Collector and Collector (Adjudication)” by Finance Act, 2005. Earlier these were substituted for “and Collec tor” by Finance Act, 
2003. 
573 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, 
promulgated as Ordinance No. III of 2010, published in the Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and thi s amendment was 
made through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No . XXII of 2009, dated October 28, 2009, published in the 
Gazette of Pakistan Extra Ordinary Part I at pages 229 to 259. 
574 Words inserted by Finance Act, 2015. 
575 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010 
576 Substituted for “sub-section (1)” by Finance Act, 2008 
577 Substituted for the figure “45” by Finance Ordinance, 2002 
578 Substituted for “three” by Finance Ordinance, 2000 
579 Sub-section (4) substituted by Finance Act, 2005 
580 Substituted for the word “Collector” by Finance Act, 2010 
581 Substituted for the words “Sales Tax” by Finance, Act, 2010 
Sales Tax Act, 1990 
 
 94   
 
 
 582[45B. Appeals.– 583[(1)  Any person, other than an State Owned 
Enterprises (SOE), aggrieved by any decision or order passed  under sections 
10,11A,11D, 11E, 11F ,21,33, 34 and 66 of this Act , by an officer of Inland 
Revenue may, within thirty days of the date of receipt of such decision or order 
prefer appeal to the Commissioner Inland Revenue (Appeals): 
 
 Provided that an appeal preferred after the expiry of thirty days may be 
admitted by the Commissioner Inland Revenue (Appeals) if he is satisfied that the 
appellant has sufficient cause for not preferring the appeal within the specified 
period: 
  
          Provided further that registered person shall have an option to directly file 
an appeal before Appellate Tribunal Inland Revenue without availing right of 
Appeal under this section. 
 
 9[****] 
 
 584[(1A)  An appeal under sub-section (1) shall– 
 
   (a) be in the prescribed form; 
   (b) be verified in the prescribed manner;  
   (c) state precisely the grounds upon which the appeal is 
made; 
   (d) be accompanied by the prescribed fee specified in sub -
section (1B); and  
   (e) be lodged with the Commissioner (Appeals) within the 
time set out in sub-section (1). 
 
 [(1B)  The prescribed fee shall be– 
 
   (a) in the case of an appeal against an  assessment– 
     (i) where the appellant is a company, five thousand 
rupees; or 
     (ii) where the appellant is not a company, two 
thousand and five hundred rupees; and  
   (b) in any other case– 
     (i) where appellant is a company, five thousand 
rupees; or 
     (ii) where the appellant is not a company, one 
thousand rupees.] 
 
                                           
582 Section 45B inserted by Finance Ordinance, 2002 
583 Section 45B substituted by Finance Act, 2025. 
584 New sub-sections (1A and 1B) inserted by Finance Act, 2020. 
Sales Tax Act, 1990 
 
 95   
 
585[586[(1C) Where in a particular case, the Commissioner (Appeals) is of the 
opinion recovery of tax levied under this act, shall cause undue hardship to the 
taxpayer, he, after affording o pportunity of being heard to the commissioner or 
officer of Inland revenue against whose orders appeal has been made, may stay the 
recovery of such tax for a period not exceeding thirty days in aggregate.]  
 
 (2) The 587[Commissioner Inland Revenue] (Appeals) may, after giving 
both parties to the appeal an opportunity of being heard, pass such order as he 
thinks fit, confirming, varying, altering, setting aside or annulling the decision or 
order appealed against 588[:]  
  
 589[Provided that such order sha ll be passed not later than 590[one hundred 
and twenty] days from the date of filing of appeal or within such extended period 
as the 591[Commissioner] (Appeals) may, for reasons to be recorded in writing fix: 
 
 Provided further that such extended period shall,  in no case, exceed 
592[sixty] days 593[:]] 
 
 594[Provided further that any period during which the proceedings are 
adjourned on account of a stay order or Alternative Dispute Resolution 
proceedings or the time taken through adjournment by the petitioner not exceeding 
thirty days shall be excluded from the computation of aforesaid periods.] 
 
 (3) In deciding an appeal, the 1[Commissioner of Inland Revenue] 
(Appeals) may make such further inquiry as may be necessary provided that he 
shall not remand the case for de novo consideration. 
 
 595[(4) ***] 
 
 596[(5) The Commissioner (Appeals) shall not admit any documentary 
material or evidence which was not produced before the Officer Inland Revenue 
unless the Commissioner (Appeals) is satisfied that the appellant was prevented by 
sufficient cause from producing such material or evidence before the Officer 
Inland Revenue.] 
 
                                           
585 Existing sub-section (1A) re-numbered as (1C) by Finance Act, 2020. 
586Inserted through Finance Act, 2013 
587 Substituted for “Collector of Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Ame ndment) 
Ordinance, 2010,  promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 
53 and this amendment was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 
2009, published in the Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
588 Colon inserted through Finance, Act, 2005 
589 Two provisos inserted by Finance Act, 2005 
590 Substituted for “ninety” by Finance Act, 2008. 
591 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 05, 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, 
promulgated as Ordinance No. III of 2010, dated February 6, 2010 published in the Gazette of Pakistan 
592 Substituted for “one hundred and twenty” by Finance Act, 2009, earlier it was substituted for “ninety” by Finance Act, 2008. 
593 Substituted for full stop by Finance Act, 2009 
594 Proviso inserted by Finance Act, 2009 
595 Sub-section (4) omitted y Finance Act, 2006.  
596 New sub-section (5) inserted by Finance Act, 2020. 
Sales Tax Act, 1990 
 
 96   
 
 46. Appeals to Appellate Tribunal.– 597(1)  Any person including 
an officer of inland revenue not below the rank of Additional Commissioner 
aggrieved by an order of the Commissioner (Appeals) under this Act or the rules 
made thereunder; or any person other than SOE aggrieved by an order passed by 
officer of inland revenue when second proviso to section 45B applies, may within 
thirty days of the receipt of such order, prefer an appeal to the Appellate Tribunal: 
 
 Provided that where sub -section (11) of section 134A of Income Tax 
Ordinance, 2001 (XLIX of 2001) shall apply, an SOE may prefer an appeal under 
this sub-section. 
 
 598[(2) The Appellate Tribunal may admit, hear and dispose of the appeal as 
per procedure laid down in sections 599[131 and 132 of the Income tax Ordinance, 
2001(XLIX of 2001, and rules made thereunder.]  
 
600[601(2A)***] 
 
 602[(3) *** 
 
 (4) *** 
 
 (5) *** 
 
 (6) *** 
 
 (7) *** 
 
 (8) *** 
 
 (9) ***] 
 
603[47. Reference to the High Court.- 604(1) Within sixty days of communication 
of the order of the Appellate Tribunal, the aggrieved person or the Commissioner 
may submit a reference in the prescribed form along with a statement of  the case 
and complete record of the Appellate Tribunal to the High Court, stating any 
question of law arising out of such order. 
 
 (2) Provisions of section 133 of the Income Tax Ordinance, 2001 (XLIX 
of 2001) and rules made thereunder relating to a reference to the High Court shall, 
mutatis mutandis, apply to references to the High Court under this Act.] 
 
                                           
597 Sub-section (1) substituted by Finance Act, 2025 
598 Sub-Section (2) substituted by Finance Act, 2009. 
599 Substituted for “194A, 194B and 194C of the customs Act, 1969 (IV of 1969)” by Finance Act, 2010. 
600 Sub Section (2A) inserted by Finance Act w.e.f. June 5, 2010. 
601 Sub-section (2A) omitted by Tax Laws (Amendment) Act, 2024. 
602 Sub-sections (3), (4), (5), (6), (7), (8) and (9) omitted by Finance Act, 2009. 
603 Section 47 substituted by Tax Laws (Amendment) Act, 2024. 
604 Sub-section (1) substituted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 97   
 
605[47A. Alternative dispute resolution.- (1) Notwithstanding any other provision 
of this Act, or the rules made thereunder, an aggrieved person in connection with 
any dispute pertaining to-  
 
(a) the liability of tax of fifty million rupees or above against 
the aggrieved person or admissibility of refund, as the case 
may be;  
(b) the extent of waiver of default surcharge and penalty; or  
(c) any other specific relief required to resolve the dispute,  
may apply, except where criminal proceedings have been initiated, to the Board 
for the appointment of a committee for the resolution of a ny hardship or dispute 
mentioned in detail in the application:  
 
  Provided that where the aggrieved person is a state-owned enterprise 
(SOE), the limit of tax liability of fifty million rupees or above mentioned in clause 
(a) shall not apply and it shall be mandatory for such aggrieved SOE to apply to 
the Board for the appointment of a committee for the resolution of any dispute 
under this section:  
 
  Provided further that no suit, prosecution, or other legal proceedings 
shall lie against the SOE in relation to the dispute resolved under this section.  
 
  Explanation.- State-owned enterprise shall have the same, meaning as 
assigned thereto in the State-Owned Enterprises (Governance and Operations) Act, 
2023 (VII of 2023).  
 (2) Provisions of section 134A o f the Income Tax Ordinance, 2001 (XLIX 
of 2001) and rules made thereunder relating to alternative dispute resolution shall, 
mutatis mutandis, apply to applications for alternative dispute resolution under this 
Act.] 
 
   606[47AB. Saving.–The period of limitation provided in clause (c) of sub-
section (1) of section 46 and sub -section (1) of section 47 shall continue to apply 
where any decision of the commissioner (Appeals) or the Appellate Tribunal is 
received prior to the date of commencement of the Tax  Laws (Amendment) Act, 
2024 (V of 2024).] 
 
 
 
 
 
 
 
 
 
 
                                           
605 Section 47A substituted by Tax Laws (Amendment) Act, 2024. 
606 New section inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 98   
 
                                                   Chapter-IX 
 
RECOVERY OF ARREARS 
 
 48.   Recovery of arrears of tax.--(1) 607[Subject to sub-section (1A), 
where] any amount of tax 608[...] is due from any person, the officer of 609[Inland 
Revenue] may:- 
 
 (a) deduct the amount from any money owing to person from   
whom such amount is recoverable and which may be at the   
disposal or in the control of such officer or any officer of   
Income Tax, Customs or Central Excise Department; 
 
 (b) require by a notice in writing any person who holds or may   
subsequently hold any money for or on account of the person   
from whom tax may be recoverable to pay to such officer the   
amount specified in the notice; 
 
(c) stop removal of any goods from the business premises of such person 
till such time the amount of tax is paid or recovered in full; 
 
 610[(ca) require by a notice in writing any person to stop clearance of 
imported goods or manufactured goods or attach bank accounts;] 
 
(d) seal the business premises till such time the amount of tax is paid or- 
recovered in full;  
 
(e) attach and sell or sell without attachment any movable or immovable 
property of the registered person from whom tax is due 611[; and] 
 
 (f) 612[...] 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 fa ils to make payment under 
such guarantee, bond or instrument 613[:] 
 
 Provided that the Commissioner Inland Revenue or any officer of Inland 
Revenue shall not issue notice under this section or the rules made thereunder for 
                                           
607 Words etc. “levied, penalty imposed or demand raised under any bond or other instrument executed under this Act” omitted by Finance Ordinance, 
2002. 
608 Substituted for “where” by Finance Act, 2007 
609 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordin ance, 2010, 
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance 
No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53  and this amendment 
was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the 
Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
610 Clause (ca) inserted by Finance Act, 1999. 
611 Semi-colon and the word “’ and” at the end of clause (e ) and thereafter clause (f) inserted by Finance Act, 1997. Earlier it was omitted by Finance 
Act, 1996. Originally it was inserted by Finance Act, 1994. 
612 Word “may” omitted by Finance Act, 2007. 
613 For the full stop a colon substituted and thereafter proviso added through Finance Act, 2017 
Sales Tax Act, 1990 
 
 99   
 
recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal 
under section 45B 614[or, as the case may be, section 46 ] in respect of the order 
under which the tax sought to be recovered has become payable and the appeal has 
not been decided by the Commissioner (Appeals), subject to the condition that 
615[ten] per cent of the amount of tax due has been paid by the taxpayer.] 
 
 616[(1A) If any arrears of tax, default surcharge, penalty or any other amount 
which is adjudged or payable by any person and which cannot be recovered in the 
manner prescribed above, the Board or any officer authorized by the Board, may, 
write off the arrears in the manner as may be prescribed by the Board.] 
 
 (2) For the purpose of recovery of tax, penalty or any other demand 
raised under this Act, the officer of  617[Inland Revenue] shall have the same powers 
which under the Code of Civil Procedure 1908 (V  of 1908), a Civil Court has for 
the purpose of recovery of an amount due under a decree. 
 
 618[(3) The provision of sub -sections (1) and (2) shall mutatis mutandis 
apply regarding assistance in collection and recovery of taxes in pursuance of a 
request from a foreign jurisdiction under a tax treaty, bilateral or a multilateral 
convention, and inter -governmental agreement or similar agreement or 
mechanism.] 
Chapter-X 
 
MISCELLANEOUS 
  
 619[49. Sales of taxable activity or transfer of ownership .--(1) In case of 
termination of taxable activity or part thereof or its sale or transfer of ownership to 
a non -registered person, the possession of taxable goods or part thereof by the 
registered person shall be deemed to be a taxable supply and the registered person 
shall be required to account for and pay the tax on the taxable goods held by him: 
 
 Provided that if the tax payable by such registered person remains unpaid, 
the amount of unpaid tax shall be the first charge on the assets of the business and 
shall be payable by the transferee of business. 
 
 620[(2) In the case of sale or transfer of ownership of a taxable activity or 
part thereof to another registered person as an ongoing concern, the taxable goods 
or part thereof shall be transferred to the new owner through a  zero-rated invoice 
and the sales tax chargeable thereon shall be accounted for and paid by the 
registered person to whom such taxable activity or part thereof is transferred.] 
                                           
614 Expression inserted by Tax Laws (Amendment) Act, 2024.  
615 Word ten substituted by Finance Act, 2018. 
616 Sub-section (1A) inserted by Finance Act, 2007. 
617 Substituted for “Sales Tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordin ance, 2010, 
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulga ted 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 amend ment 
was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the 
Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
618 New sub-section inserted by Finance Act, 2021. 
619 Section 49 Substituted by Finance Act, 1996 
620 Sub-section (2) substituted through Finance Act, 2016. 
Sales Tax Act, 1990 
 
 100   
 
 
 621[49A. Liquidators. – (1) Every person (hereinafter referred to as a 
“liquidator”) who is – 
 
  (a)  a liquidator of a company; 
 
  (b)  a receiver appointed by a Court or appointed out of  
  Court; 
 
  (c)  a trustee for a bankrupt; or 
 
  (d)  a mortgagee in possession;  
 
shall, within fourteen days of being appointed or taking possession of an asset in 
Pakistan, whichever occurs first, give written notice thereof to the 
622[Commissioner]. (2) The 4[commissioner] shall, within three months of being 
notified under sub -section (1), notify the liquidator, in writing, of the amount 
which appears to the 1[Commissioner] to be sufficient to provide for any sales tax 
which is or will become payable by the person whose assets are in the possession 
of the liquidator. 
 
 (3) A liquidator shall not, without leave of the 1[Commissioner]. Part 
with any asset held as liquidator until the liquidator has been notified under sub -
section (2). 
 
 (4) A liquidator: –  
 
 (a) shall set aside, out of the proceeds of sale of any asset by the  
liquidator, the amount notified by the 1[Commissioner] under sub -
section (2), or such amount as is subsequently agreed to by the  
1[Commissioner]: and 
 (b) shall be liable to the extent of the amount set aside for the Sales tax 
liability of the person who owned the asset. 
 
 (5)  A liquidator shall be personally liable to the extent of any amount 
required to be set-aside under sub-section (4) for the tax referred to in sub-section 
(2) if, and to the extent that, the liquidator fails to comply with the requirements of 
this section. 
                                           
621 Section 49A inserted by Finance Act, 2004. 
622 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordin ance, 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. 
Sales Tax Act, 1990 
 
 101   
 
 
 (6) Where the proceeds of sale of any asset are less than the amount 
notified by the 623[Commissioner] under sub -section (2), the application of sub -
sections (4) and (5) shall be limited to the proceeds of sale. 
 
 (7) This section shall have effect notwithstanding anything contained in 
any other law for the time being in force.] 
 
 50. Power to make rules. – 624[(1)] The Board may, by notification in 
the official Gazette, make rules for carrying out the purposes of this Act 625[, 
including rules for charging fee for processing of return, claims and other 
documents and for preparation of copies thereof.] 
 
 626[(2) All rules made under sub-section (1) or any other provisions of this 
Act, shall be collected, arranged and published along with general orders and 
departmental instructions and rulings, if any, at appropriate intervals and sold to 
the public at reasonable price 627[or may be placed regularly on the official website 
maintained by the Board.] 
 
 628[50A. Computerized system.– (1) The Board may prescribe the use of 
computerized system for carrying out the purposes of this Act, including the receipt 
of applications for registration, returns and such other declarations or information 
required to be provided under this Act and the rules made thereunder, from such 
date and for such registered persons or class of persons as the Board may, by 
notification in the official Gazette, specify. 
 
 (2) The Board may make rules for regulating the conduct and transaction 
of business in relation to the submission of returns or other information to the 
Board by the persons required to transmit or receive any information through the 
computerized system, including 629[matters such as grant of] authorization, 
suspension and cancellation of authorization and for security of the information 
transmitted or received through the computerized system.] 
 
 630[(3) Unless otherwise proved, the information received in the 
computerized system from or on behalf of any registered person shall, for all 
official and legal purposes, be deemed to have been furnished by and received from 
such registered person. 
 
                                           
623 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by  Finance Amendment) Ordinance, 2010, 
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance 
No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakist an Extraordinary Part I at pages 23 to 53 and this amendment 
was made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the 
Gazette of Pakistan Extraordinary Part I at pages 229 to 259. 
624 Brackets and figure inserted by Finance Act, 2008. 
625 Comma and words inserted by Finance Act, 1994 
626 Sub-section (2) inserted by Finance Act, 2008. 
627 Words inserted by Finance Act, 2021. 
628 Section 50A inserted by Finance Act, 2006. 
629 Substituted for “their” by Finance Act, 2007 
630 Sub-section (3) and (4) inserted by Finance Act, 2007. 
Sales Tax Act, 1990 
 
 102   
 
 (4) The business information gathered thr ough computerized system 
shall be confidential to be used only for official and legal purposes and no 
unauthorized person shall claim for any access to such information.] 
 631[50B. Electronic scrutiny and intimation. -- (1) The Board may 
implement a computerized system for the purpose of automated scrutiny, analysis 
and cross -matching of returns and other available data relating to registered 
persons and to electronically send intimations to such registered persons about any 
issue detected by the system. 
 
 (2) The intimation sent by the computerized system under sub -section 
(1) shall be in the nature of an advice or advance notice, aimed at allowing the 
registered person to clarify the issue, rectify any mistake or take other corrective 
action before any legal or penal action is initiated. 
 
 (3) The computerized system shall be so implemented so as to keep 
record of the issues detected, intimations sent, responses received and actions 
taken, and to present such information to the officer of Inland Revenue and to the 
Board in the prescribed manner. 
 
 (4)  The Board may prescribe procedures and specifications for the 
smooth and efficient operation of the computerised system.]  
 51. Bar of suits, prosecution and other legal proceedings.– (1) No suit 
shall be brought in any Civil Court to set aside or modify any order passed, any 
assessment made, any tax levied, any penalty imposed or collection of any tax 
made under this Act. 
 
 (2) No suit, prosecution or other legal proceeding shall lie against the 
Federal Government or against any public servant in respect of any order passed 
in good faith under this Act. 
 
 632[(3) Notwithstanding anything in any other law for the time being in 
force, no investigation or  inquiry shall be undertaken or initiated by any 
governmental agency against any officer or official for anything done in his official 
capacity under this Act, rules, instructions or direction made or issued 
thereunder without the prior approval of the Board.] 
 
 52. Appearance by authorised representative. – A r egistered person 
required to appear before the Appellate Tribunal or an officer of 633[Inland 
Revenue] in connection with any proceedings under this Act may, in writing, 
authorise any person 634[having such qualification as may be prescribed] to 
represent him or appear on his behalf. 
                                           
631 Section 50B inserted by Finance Act 2014 
632 Sub section (3) inserted by Finance Act, 2004. 
633 Substituted for “Sales Tax Act” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) O rdinance, 
2010, promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance 
No. III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53  and this amendment was 
made through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette 
of Pakistan Extraordinary Part I at pages 229 to 259. 
634 Words inserted by Sales Tax (Amendment) Ordinance, 2000, dated September 5, 2000 
Sales Tax Act, 1990 
 
 103   
 
 
 635[52A. e-intermediaries to be appointed.– (1) Subject to such conditions, 
limitations and restrictions, the Board may, by a notification in the official Gazette, 
appoint a person to electronically file return under Chapter V and such other 
documents electronically, as may be prescribed from time to time, on behalf of a 
person registered under section 14. 
 
 (2) A person registered under section 14 may authorize an e -
intermediary to electronically file return or any other documents,  as specified in 
sub-section (1). 
 
 (3) The return or such other documents filed by an e -intermediary on 
behalf of a registered person shall be deemed to have been filed by that registered 
person. 
 
 (4) Where this Act requires anything to be done by the registered person 
and if such thing is done by an e-intermediary authorized by the registered person 
under sub-section (2), unless the contrary is proved, shall be deemed to have been 
done with the knowledge and consent of such registered person so that in a ny 
proceedings under this Act, the registered person shall be liable as if the thing has 
been done by him. 
 
 (5) Where an e -intermediary, authorized by a registered person under 
sub-section (2) to act on his behalf, knowingly or wilfully submits a false or  
incorrect information or document or declaration with an intent to avoid payment 
of tax due or any part thereof or claiming a tax credit or a refund that is not due to 
the registered person, such e-intermediary shall be jointly and severally responsible 
for recovery of the amount of tax short paid or the amount refunded in excess as a 
result of such incorrect or false information or document or declaration, without 
prejudice to any other action that may be taken against him under the relevant 
provisions of the law. 
 
 (6) The Board may, by notification in the official Gazette, prescribe rules 
for the conduct and transaction of business of e - intermediaries, including their 
appointment, suspension and cancellation of appointment, subject to such 
conditions as specified therein.] 
 
 53. Estate of deceased person. – The tax liability of a deceased 
registered person under the Act shall be the first charge on his estate in the hands 
of his successors. 
 
 54. Estate in bankruptcy .– (1) If a registered person is declar ed 
bankrupt, the tax liability under this Act shall pass on to the estate in bankruptcy if 
it continues to operate the business. 
 
                                           
635 Section 52A inserted by Finance Act, 2006. 
Sales Tax Act, 1990 
 
 104   
 
 (2) If tax liability is incurred by an estate in bankruptcy, the tax is 
deemed to be a current expenditure in the operations of the estate in bankruptcy 
and shall be paid before the claims preferred by other creditors are settled. 
 636[55.  Removal of difficulties.– If any difficulty arises in giving effect to 
the provisions of this Act or the rules made or notifications issued there under, the 
Board may through a general order or otherwise, issue instructions or directions, 
not inconsistent with the provisions of this Act, for such actions to be taken by an 
officer of Inland Revenue or any other person as it considers necessary or  
expedient for the purpose of removing the difficulty.] 
 
 637[56. Service of orders; decisions etc.  – (1) subject to this Act ,  any 
notice, order or requisition required to be served on a resident individual, other 
than in a representative capacity for the purposes of this Act shall be treated as 
properly served on the individual if – 
 
 (a) personally served on the individual or, in the case of an individual 
under a legal disability or a non -residents individual the 
representative of the individual; 
 (b) sent by register post or courier service specified in clause (b) of sub-
section (2) or to the individual’s usual or last known ad dress in 
Pakistan; 638[..] 
    
 (c) served on the individual in the manner prescribed for service of a 
summons under the code of civil procedure, 1908(Act V of 1908) 
639[; or 
 
 (d) sent electronically through email or to the e-folder maintained for the 
purpose of e -filing of sales tax -cum-Federal excise returns by the 
640[registered person].]  
 
 (2) Subject to this Act, any notice order or requisition required to be 
served on any person, other than a resident individual to whom sub -section 
(1)applies, for the pur poses of this Act, shall be treated as properly served on 
person if –  
 
 (a) personally served on the representative of the person; 
 
 (b) sent by registered post or courier service to the person’s registered 
office or address for service of notices under this Act, in Pakistan or 
where the person does not have such office or address, the notice is 
                                           
636 Substituted vide Finance Ordinance, 2001 
637 Section 56 substituted vide Finance Act, 2010 
638 The words “or” omitted through Finance Act, 2017 
639 Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017 
640 The words substituted by Finance Act, 2020. 
Sales Tax Act, 1990 
 
 105   
 
sent by registered [Post to any office or pla ce of business of the 
person in Pakistan; 641[..] 
 
 (c) served on the Person in the manner prescribed for service of a 
summons under the code of civil procedure, 1908(Act V of 1908) 
642[; or 
 
 (d) sent electronically through email or to the e-folder maintained for the 
purpose of e -filing of sales tax -cum-Federal excise returns by the 
3[registered person].] 
 
 (3) Where an association of persons is dissolved, any notice, order or 
requisition required to be served under this Act, on the association or a member of 
the association may be served on any person who was the principal officer or a 
member of the association immediately before such dissolution. 
 
 (4) Where, business stands discontinued, any notice, order or requisition 
required to be served under this Act, on the person discontinuing the business may 
be served on the person personally or on any individual who was the person’s 
representative at the time of discontinuance. 
 
 (5) The validity of service of a notice under this Act shall not be called 
into question after the notice has been complied with in any manner.] 
 
 643[56A. Agreement for the exchange of information 644[or assistance in 
recovery of taxes] .– (1) The Federal Government may enter into bilateral or 
multilateral agreements  with provincial governments or with governments of 
foreign countries for the exchange of information, including electronic exchange 
of information, with respect to sales tax i mposed under this Act or any other law 
of Pakistan and under the corresponding laws of such countries and may, by 
notification in the official Gazette, make such provisions as may be necessary for 
implementing such agreements. 
 
 645[(1A)  Notwithstanding    anything   contained    in  this  Act,  the   Board 
shall  have   power  to  share  data  or  information   including   real  time  data 
videos,   images   received   under  the  provisions   of this  Act  with  any  other 
Ministry  or Division  of the  Federal  Government   or Provincial  Government, 
subject   to  such   limitations   and  conditions   an  may  be  specified   by  the 
Board.] 
 
 (2) The provisions of section 107 of the Income Tax Ordinance, 2001 
(XLIX of 2001) shall, mutatis mutandis, apply to the provisions of this section. 
                                           
641 The words “or” omitted through Finance Act, 2017 
642 Semi colon substituted for the full stop and new clause (d) inserted through Finance Act, 2017 
643 Sections 56A, 56B and 56C added by Finance Act, 2015 
644 Words inserted by Finance Act, 2021. 
645 New sub-section (1A) inserted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 106   
 
 
 646[(3) The Federal Government may enter into bilateral or multilateral 
convention, and inter-governmental agreement or similar agreement or mechanism 
for assistance in the recovery of taxes.] 
 
 647[56AB. Real-time access to information and databases. —(1) 
Notwithstanding anything contained in any law for the time being in force, 
including but not limited to the National Database and Registration Authority 
Ordinance, 2000 (Ordinance VIII of 2000), and the Em igration Ordinance, 1979 
(Ordinance XVIII of 1979), arrangements shall be made to provide real -time 
access of information and database to the Board in the prescribed form and manner 
by– 
  (a)  the National Database and Registration Authority with respect 
to information pertaining to National Identity Card (NIC), 
Pakistan Origin Card, Overseas Identity Card, Alien 
Registration Card, and other particulars contained in the 
Citizen Database; 
  (b) the Federal Investigation Agency and the Bureau of Emigration 
and Overseas Employment with respect to details of 
international travel;  
  (c) the Islamabad Capital Territory and Provincial and local land 
record and development authorities with respect to record -of-
rights including digitized edition of record -of-rights, periodic 
record, record of mutations and report of acquisition of rights; 
  (d) the Islamabad Capital Territory and Provincial Excise and 
Taxation Departments with respect to information regarding 
registration of vehicles, transfer of ownership and other 
associated record; 
  (e) all electricity suppliers and gas transmission and distribution 
companies with respect to particulars of a consumer, the units 
consumed and the amount of bill charged or paid: 
 
   Provided that where the connection is shared or is 
used by a person other than the owner, the name and NIC of the 
owner and the user shall also be furnished: 
 
   Provided further that all electricity suppliers and 
gas transmission and distribution companies shall make 
arrangements by the 1st day of January , 2021 for allowing 
consumers to update the ratio of sharing of a connection or the 
particulars of users, as the case may be; and 
 
  (f) any other agency, authority, institution or organization, notified 
by the Board. 
                                           
646 New sub-section (3) inserted by Finance Act, 2021. 
647 New section 56AB inserted by Finance Act, 2020. 
Sales Tax Act, 1990 
 
 107   
 
 
 (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 ava ilable 
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.] 
 
 648[56B. Disclosure of information by a public servant.─  (1) Any 
information acquired under any provision of this Act shall be confidential and no 
public servant 649[, expert or auditors appointed under section 32B] shall disclose 
any such informa tion, 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.] 
 
 650[(2) The Board may prescribe procedure for “mystery shopping” in 
respect of invoices issued by tier -1 retailers integrated with FBR online system 
randomly and in case of any discrepancy, all the relevant provisions of this Act 
shall apply accordingly.] 
 
  651[57. Rectification of Mistake. – (1) The officer of Inland Revenue, 
Commissioner, the Commissioner (Appeals) or the Appellate Tribunal may, by an 
order in writing, amend any order passed by him to rectify any mistake apparent 
from the record on his or its own motion or any mistake brought to his or its notice 
by a taxpayer or, in the case of the Commissioner (Appeals) or the Appellate 
Tribunal, the Commissioner. 
  
 (2) No order under sub section (1) which has the effect of increasing an 
assessment, reducing a refund or otherwise applying adversely to the taxpayer shall 
                                           
648 Section 56B substituted through Finance Act, 2016. 
649 expression “, expert or auditors appointed under section 32B” inserted by Finance Act, 2025. 
650 Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021. 
651 Section 57 is substituted by Finance Act, 2013. 
Sales Tax Act, 1990 
 
 108   
 
be made unless the taxpayer has been given a reasonable opportunity of being 
heard. 
 
 (3) Where a mistake apparent on the record is brought to the notice of 
the officer of Inland Revenue, Commissioner or Commissioner (Appeals), as the 
case may be, and no order has been made under sub section (1), before the 
expiration of the Financial year next following the date on which the mistake was 
brought to their notice, the mistake shall be treated as rectified and all the 
provisions of this Act shall have effect accordingly. 
 
 (4) No order under sub -section (1) shall be made after five years from 
the date of the order sought to be rectified.]  
 
 652[58. Liability for payment of tax in case of private companies or 
business enterprises.–(1) Notwithstanding anything contained in the Companies 
Act, 2017 (XIX of 2017), where any private company or business ent erprise is 
wound up and any tax chargeable on the company or business enterprise, whether 
before, or in the course, or after its liquidation, in respect of any tax period cannot 
be recovered from the company or business enterprise, every person who was an 
owner of, or partner in, or director of, or a shareholder, owning not less than ten 
per cent of the paid-up capital, in the company or business enterprise, as the case 
may be, during the relevant period shall jointly and severally with such persons, 
be liable for the payment of such tax. 
 
 (2) Any director or partner who pays tax under sub -section (1) shall be 
entitled to recover the tax paid from the company or a share of the tax from any 
other director or partner, as the case may be. 
 
 (3) A shareholder who pays tax under sub-section (1) shall be entitled to 
recover the tax paid from the company or from any other shareholder, owning not 
less than ten percent of the paid up capital, in proportion to the shares owned by 
that other shareholder.”; and 
 
 (4) The provisions of this Act shall apply to any amount due under this 
section as if it were tax due under an order for assessment made under this Act.] 
 
 653[58A. Representatives.–  (1) For the purpose of this Act and subject to sub-
sections (2) and (3), the expression “representative” in respect of a registered 
person, means: – 
 
 (a) where the person is an individual under a legal disability, the 
guardian or manager who receives or is entitled to receive income on 
behalf, or for the benefit of the individual; 
 
                                           
652 Section 58 substituted by Finance Act, 2019. 
653 Section 58A and 58B inserted by Finance Act, 2008 
Sales Tax Act, 1990 
 
 109   
 
 (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 o r any similar officer of the 
company; 
 
 (c) where the person is a trust declared by a duly executed instrument in 
writing whether testamentary or otherwise, any trustee of the trust; 
 
 (d) where the person is a Provincial Government, or local authority in 
Pakistan, any individual responsible for accounting for the receipt 
and payment of money or funds on behalf of the Provincial 
Government or local authority; 
 
 (e) where the person is an association of persons, a director or a manager 
or secretary or agent or accountant or any similar officer of the 
association or, in the case of a firm, any partner in the firm; 
 
 (f) where the person is the Federal Government, any individual 
responsible for accounting for the receipt and payment of moneys or 
funds on behalf of the Federal Government; or  
 
 (g) where the person is a public international organization, or a foreign 
government or political sub -division of a foreign government, any 
individual responsible for accounting for the receipt and payment of 
moneys or fun ds in Pakistan on behalf of the organization, 
government, or political subdivision of the government. 
 
 (2) Where the Court of Wards, the Administrator General, the Official 
Trustee, or any receiver or manager appointed by, or under, any order of a Court 
receives or is entitled to receive income on behalf, or for the benefit of any person, 
such Court of Wards, Administrator General, Official Trustee, receiver, or 
manager shall be the representative of the person for the purposes of this Act. 
 
 (3) 654[subject to sub -section (4), where a person is a non -resident 
person, the representative of the said person for the purpose of this Act, for a 
financial year in which the relevant tax period falls, shall be any person in 
Pakistan]: – – 
 
 (a) who is employed by, or on behalf of, the non-resident person; 
 
 (b) who has any business connection with the non-resident person; 
 
 (c) from or through whom the non -resident person is in receipt of any 
income, whether directly or indirectly; 
 
                                           
654 The expression substituted by and Explanation added by Finance Act, 2020. 
Sales Tax Act, 1990 
 
 110   
 
 (d) who holds, or controls the re ceipt or disposal of any money 
belonging to the non-resident person; 
 
 (e) who is the trustee of the non-resident person; or 
 
 (f) who is declared by the 655[Commissioner] by an order in writing to 
be the representative of the non-resident person. 
 
1[Explanation.– For the purposes of this sub-section, non-resident person 
shall have the same meaning assigned thereto under the Income Tax Ordinance, 
2001 (XLIX of 2001).]  
 
 
 (4) No person shall be declared as the representative of a non -resident 
person unless the person has been given an opportunity by the 1[Commissioner] of 
being heard.] 
 
 58B. Liability and obligations of representatives .– (1) Every 
representative of a person shall be responsible for performing any duties or 
obligations imposed by or under this Act on the person, including the payment of 
tax.  
 
 (2) Subject to section 58 and sub-section (5) of this section, any tax that, 
by virtue of sub -section (1), is payable  by a representative of a registered person 
shall be recoverable from the representative only to the extent of any assets of the 
registered person that are in the possession or under the control of the 
representative. 
 
 (3) Every representative of a registered person who pays any tax owing 
by the registered person shall be entitled to recover the amount so paid from the 
registered person or to retain the amount so paid out of any moneys of the 
registered person that are in the representative’s possession or  under the 
representative’s control. 
 
 (4) Any representative, or any person who apprehends that he may be 
assessed as a representative, may retain out of any money payable by him to the 
person on whose behalf he is liable to pay tax (hereinafter in this s ection referred 
to as the “principal”), a sum equal to his estimated liability under this Act, and in 
the event of disagreement between the principal and such a representative or a 
person as to the amount to be so retained, such representative or person may obtain 
from the 656[Commissioner] a certificate stating the amount to be so retained 
                                           
655 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amen dment was made by Finance Amendment) Ordinance, 2010, 
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. 
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made 
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of 
Pakistan Extraordinary Part I at pages 229 to 259. 
656 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010 
Sales Tax Act, 1990 
 
 111   
 
pending final determination of the tax liability, and the certificate so obtained shall 
be his authority for retaining that amount. 
 
 (5) Every representative shall be personally liable for the payment of any 
tax due by the representative in a representative capacity if, while the amount 
remains unpaid, the representative: –  
 
 (a) alienates, charges or disposes of any moneys received or accrued in 
respect of which the tax is payable; or 
 
 (b) disposes of or parts with any moneys or funds belonging to the  
person that is in the possession of the representative or which comes 
to the representative after the tax is payable, if such tax could legally 
have been paid from or out of such moneys or funds. 
 
 (6) Nothing in this section shall relieve any person from performing any 
duties imposed by or under this Act on the person which the representative of the 
person has failed to perform.] 
 
 657[58C. Inspection of audit firm – Where in case of a registered person, 
whose accounts are subject to audit under the Companies Act, 2017 (XIX of 2017), 
Chief Commissioner Inland Revenue has reason to believe that the audited 
accounts do not reflect the true and fair view of sales and purchases an d related 
sales tax liability, he or she may with the approval of the Board, refer the audit 
firm, who has issued audit certificate to that registered person, for inspection to 
Audit Oversight Board. 
 
 658[59. Tax paid on stocks acquired before registration.– The tax 659[. . .] 
paid on goods purchased by a person who is subsequently required to be registered 
under section 14 due to new liabilities or levies or gets voluntary registration under 
660[this Act or the rules made thereunder], shall be treated as input tax, provided 
that such goods were purchased by him from a registered person against an invoice 
issued under section 23 during a period of thirty days before making an application 
for registration and constitute his verifiable unsold stock on the date of compulsory 
registration or on the date of application for registration or for voluntary 
registration: 
 
 Provided that where a person imports goods, the tax paid by him thereon 
during a period of ninety days before making an application for registration shal l 
be treated as an input tax subject to the condition that he holds the bill of entry 
relating to such goods and also that these are verifiable unsold or un -consumed 
stocks on the date of compulsory registration or on the date of application for 
registration or for voluntary registration.] 
                                           
657 Section 58C inserted by Finance Act, 2025 
658Section 59 inserted by Finance Act, 1999. Earlier it was omitted by Finance Act, 1997. Earlier it was substituted through Finance Act, 1996. 
659 Commas and words “, other than the turnover tax” omitted by Finance Act, 2004. 
660 Substituted for “section 18” by Finance Act, 2004 
Sales Tax Act, 1990 
 
 112   
 
 
 661[60. Powers to deliver certain goods without payment of tax.– Subject 
to such conditions, limitations or restrictions as it thinks fit to impose, 662[Federal 
Government] may authorise the 663[import] of goods or class of g oods, without 
payment of the whole or any part of the tax payable thereon to the following 
persons, namely: – 
 
 (i) registered importers importing such goods temporarily with a view 
to subsequent exportation; 
 
 664[(ii) registered manufacturer -cum-exporters who import raw materials 
and intermediary products for further manufacture of goods meant 
for export;] 
   
 665[(iii) ***] 
 
 61. Repayment of tax in certain cases. – Subject to such conditions, 
limitations or restrictions as it thinks fit to impose, the Board may authorise the 
repayment in whole or in part of the tax paid on 666[...] any goods of such class or 
description as it may determine, which have been used in the production, 
manufacture, processing, repair or refitting in Pakistan of goods of such class or  
description as it may determine. 
 
 667[61A. Repayment of tax to persons registered in Azad Jammu and 
Kashmir.– Subject to such conditions, limitations or restrictions as it may deem 
fit to impose, the Board may authorize the repayment in whole or in part of the 
input tax paid on any goods acquired in or imported into Pakistan by the persons 
registered in Azad Jamm u and Kashmir as are engaged in making of zero -rated 
supplies.] 
 62. Drawback allowable on re -export.– When any goods which have 
been imported into Pakistan and on which tax has been paid on importation are re-
exported outside Pakistan and such goods as are capable of being identified, seven-
eighth of such tax shall, except as otherwise hereinafter provided, be repaid as 
drawback, and the provisions of Customs Act, 1969 (IV of 1969), relating to 
drawback of customs duties shall, so far as may be apply to such tax, as they apply 
for the purposes of that Act: 
 
 Provided that no such drawback shall be repaid unless the re -export is 
made within a period of two years from the date of importation as shown in the 
records of the Custom House: 
 
                                           
661 Section 60 Substituted by Finance Act, 1998. 
662 Words substituted by Finance Act, 2018. 
663 Substituted for “delivery” by Finance Act, 1999 
664 Clause (ii) substituted by the Finance Act, 1999. 
665 Clause (iii) omitted by Finance Act, 1999. 
666 Words “the importation of” omitted by Finance Ordinance, 2002 
667 Section 61A inserted by Finance Act, 2008. 
Sales Tax Act, 1990 
 
 113   
 
 Provided further that the Board may, on sufficient cause being shown, in 
any case extend the said period by a further period of one year. 
 
 63.   Drawback on goods taken into use between importation and 
re-exportation.– Notwithstanding anything contained in section 62, the 
repayment of sales tax as drawback in respect of goods which have been taken into 
use between importation and re -exportation shall be subject to such orders, 
conditions or limitations as may be passed or imposed by the Board in each case,- 
 
 (a) modifying the amount of tax which shall be repaid as drawback on 
any such goods or class of goods; or 
 
 (b) prohibiting the repayment of tax as drawback on any such goods or 
class of such goods; or 
 
 (c) varying the condition for the grant of drawback on any such goods  
or class of such goods by restricting the period after importation 
within which the goods must be re-exported. 
 
 64. Power to declare what goods are identifiable and to prohibit 
drawback in case of specified foreign territory.– The Federal Government may, 
from time to time, by notification in the official Gazette, prohibit the payment of 
drawback upon the exportation of goods or any specified goods or class of goods 
to any specified foreign port or territory. 
 
 65. Exemption of tax not levied or short levied as a result of general 
practice.– Notwithstanding anything contained in this Act, if in respect of any 
supply the 668[Federal Government] is satisfied that inadvertently and as a general 
practice: – 
 
 (a) tax has not been charged in any area on any supply  which was 
otherwise taxable, or according to the said practice the amount 
charged was less than the amount that should have actually been 
charged; 
 
 (b) the registered person did not recover any tax prior to the date it was 
discovered that the supply was liable to tax; and 
 
 (c) the registered person started paying the tax from the date when it was 
found that the supply was chargeable to tax; 
 
  It may, by a notification in the official Gazette, direct that the tax not 
levied or short levied as a result of that inadvertent practice, shall not 
be required to be paid for the period prior to the discovery of such 
inadvertent practice. 
                                           
668 Words substituted by Finance Act, 2018. 
Sales Tax Act, 1990 
 
 114   
 
  
 66.  Refund to be claimed within one year. – No refund of tax claimed 
to have been paid or over paid through inadvertence, error or misconstruction 669[or 
refund on account of input adjustment not claimed within the relevant tax period, 
] shall be allowed, unless the claim is made within one year of the date of payment 
670[:]  
 
 671[Provided that in a case where a registered person did not deduct input 
tax within the relevant tax period, the  672[Commissioner] may, after satisfying 
himself that input tax adjustment is due and admissible, allow the registered person 
to take such adjustment in the tax period as specified by the 4[Commissioner]:]  
 
 673[ Provided 674[further] that in a case where the refund has become due 
on account of any decision or judgement of any officer of 675[Inland Revenue] or 
court or the Tribunal, the period of one yea r shall be reckoned from the date of 
judgement or decision of such officer, court or Tribunal676[:]]  
 
 Provided further that the application or claim filed under this section shall 
be disposed of within a period not exceeding ninety days from the date of filing of 
such application or claim.] 
 
 677[Provided also that no refund shall be admissible under this section if 
incidence of tax has been passed directly or indirectly to the consumer.] 
 
 678[67. Delayed Refund.– Where a refund due under section 10 is not made 
within 679[the time specified in section 10 from the date] of filling of 680[refund 
claim], there shall be paid to the claimant in addition to the amount of refund due 
to him, a further sum equal to 681[KIBOR] per annum of the amount of refund due, 
from the date following the expiry of [the time specified 682[as aforesaid], to the 
day preceding the day of payment of refund: 
 
 Provided that where there is reason to believe that a person has claimed 
the refund which is not admissible to him, the provision regarding the payment of 
                                           
669 Words inserted by Finance Act, 1998. 
670 Substituted for the full-stop by Finance Ordinance, 2001 
671 Proviso inserted by Finance Ordinance, 2002. 
672 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordinance, 2010, 
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. 
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made 
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of 
Pakistan Extraordinary Part I at pages 229 to 259. 
673 Proviso inserted by Finance Ordinance, 2001. 
674 Word inserted by Finance Ordinance, 2002. 
675 Substituted for “sales tax” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordin ance, 2010, 
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. 
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made 
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of 
Pakistan Extraordinary Part I at pages 229 to 259. 
676 Substituted for full stop by Finance Act, 2005 
677 Proviso inserted by Finance Act, 2011. 
678 Section 67 substituted by Finance Act, 1996. 
679 Substituted for “thirty days” by Finance Act, 1997 
680 Substituted for “return” by Finance Act, 2007  
681 Substituted for “Six percent” by Finance A ct, 2009, earlier the word “six” was substituted for “fourteen” by the Finance Act, 2004, before that it 
was substituted for “ten” by Finance Supplementary (Amendment) Act, 1997. Which came into force on March 28, 1997, prior to this it was substituted 
by Sales Tax (Second Amendment) Ordinance 1996, dated 2nd November, 1996.  
682 Substituted for the words and figures “in section 10 from the date” by Finance Act, 2007. 
Sales Tax Act, 1990 
 
 115   
 
such additional amount shall not apply till the investigation of the claim is 
completed and the claim is either accepted or rejected 7[:] 
 
 683[Provided further that where a refund due in the consequence of any 
order passed under section 66 is not made within forty five  days of date of such 
order, there shall be paid to the claimant in addition to the amount of the refund 
due to him, a further sum equal to KIBOR per annum of the amount of refund, due 
from the date of the refund order.] 
 
 684[67A. Payment of refund through sales tax refund bonds. — (1) 
Notwithstanding anything contained in section 67, the sales tax refunds payable 
under this Act may also be paid through sales tax refund bonds to be issued by 
FBR Refund Settlement Company 685[ ] Limited, in book -entry form throu gh an 
establishment licensed by the Securities and Exchange Commission of Pakistan as 
a central depository under the Securities Act, 2015, (111 of 2015), in lieu of 
payment to be made through issuance of cheques or bank debit advice.  
 
 (2) The Board shall issue a promissory note to FBR Refund Settlement 
Company 686[ ] Limited, hereinafter referred to as the company, incorporating the 
details of refund claimants and the amount of refund determined as payable to each 
for issuance of sales tax re fund bonds, hereinafter referred to as the bonds, of the 
same amount. 
 
 (3) The bonds shall be issued in values in multiples of one hundred 
thousand rupees.  
 
 (4) The bonds so issued shall have a maturity period of three years and 
shall bear annual simple profit at ten per cent.  
 
 (5) The bonds shall be traded freely in the country’s secondary markets. 
 
 (6) The bonds shall be approved security for calculating the statutory 
liquidity reserve. 
 
 (7) The bonds shall be accepted by the banks as collateral. 
 
 (8) There shall be no compulsory deduction of Zakat against the bonds 
and Sahib-e-Nisab may pay Zakat voluntarily according to Shariah. 
                                           
683 Colon substituted for full stop and new proviso inserted by Finance Act, 2021. 
684 New section 67A inserted by Finance Supplementary (Second Amendment) Act, 2019 
685 The word “private” omitted by Finance Act, 2019. 
686 The word “private” omitted by Finance Act, 2019. 
Sales Tax Act, 1990 
 
 116   
 
 (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 pa id in the aforesaid 
manner to the claimants who opt for payment in such manner. 
 
 (12) The 687[Board, with the approval of the Federal Minister-in-charge,] 
may notify procedure to regulate the issuance, redemption and other matters 
relating to the bonds, as may be required.] 
 
 68. Liability of the registered person for the acts of his agent.– When 
any person is expressly or impliedly authorised by a registered person to be his 
agent for all or any of the purposes of this Act, the registered person shall be 
responsible for the act done by his agent. 
 
 688[69. Issuance of duplicate of sales tax documents .– An officer of 
689[Inland Revenue not below the rank of Assistant Commissioner] may, on 
payment of one hundred rupees, issue an attested duplicate of any sales tax  
document as is available with the department or has been filed under this Act or 
rules made thereunder to a relevant registered person applying for the same.] 
 
 70. Computation of limitation period. – In computing the period of 
limitation prescribed for any appeal or application under this Act, the day on which 
the order complained of was served and, if the concerned person was not furnished 
with a copy of the order, the time requisite for obtaining a copy of such order shall 
be excluded. 
 
 690[71. Special procedure.– 691[(1)] 692[The Board] may, by notification in 
the official Gazette, prescribe special procedure for scope and payment of tax, 
registration, book keeping and invoicing requirements and returns, etc. in respect 
of such supplies as may be specified therein.] 
 
 693[(2) ***] 
 
                                           
687 The expression substituted for the words “Federal Government” by Finance Act, 2019. 
688 Section 69 substituted by the Finance Act, 2008. 
689 Substituted for the words “Sales Tax not below the rank of Assistant Collector” by the Finance Act, 2010 
690 Section 71 inserted by Finance supplementary (Amendment) Act, 1997, which came into force on March 28, 1997. Earlier the same amendment 
was made by Sales Tax (Second Amendment) Ordinance, 1996 and by Sales Tax (Amendment) Ordinance, 1997.  
691 Section 71 re-numbered as sub-section (1) by Finance Act, 1999 
692 The expression “Notwithstanding anything contained in this Act, the Federal Government” substituted through Finance Act, 2019. 
693 Sub-section (2) omitted by Sales Tax (Amendment) Ordinance, 1999, dated 13th August, 1999. Earlier inserted by Finance Act, 1999. 
Sales Tax Act, 1990 
 
 117   
 
 694[(3) Notwithstanding anything contained in this Act or any other law for 
the time being in force or any decision of any court, the trade enrolment Certificate 
Schemes immediately in force before the commencement of the Finance Act, 1999, 
shall be deemed to be validly made under this Act.] 
 
 695[72. Officers of 696[Sales Tax] to follow Board's orders, etc. – All 
officers of 9[Inland Revenue] and other persons employed in the execution of this 
Act shall observe and follow the orders, instructions and directions of the Board: 
 Provided that no such orders, instructions or directions shall be given so 
as to interfere with the discretion of [officers of 6[Inland Revenue] in the exercise 
of their quasi-judicial functions.] 
 
 697[72A  Reference to the authorities. – Any reference to the Collector, 
Additional Collector, Deputy Collector, Assistant Collector, Superintendent, 
Senior Auditor and an officer of Sales Tax wherever occur in this Act and rules, 
notifications, clarifications general orders or order made or iss ued there under, 
shall be construed as reference to the Commissioner Inland Revenue, Additional 
Commissioner Inland Revenue,” Deputy Commissioner Inland Revenue, Assistant 
Commissioner Inland Revenue, Superintendent Inland Revenue,  Inland Revenue 
Audit Officer and an officer of Inland Revenue, respectively.] 
 
 698[72B. Selection of audit by the Board.– (1) The Board may select persons 
or classes of persons for audit of tax affairs through computer ballot which may be 
random or parametric as the Board may deem fit. 
 
 699[(1A) Notwithstanding anything contained in this Act or any other law, for 
the time being in force, the Board shall keep the selection parameters confidential.] 
 
 (2) Audit of tax affairs of persons selected under sub-section (1) shall be 
conducted as per procedure given in section 25 and all the provisions of this Act 
shall apply accordingly. 
 
 (3) For the removal of doubt, it is hereby declared that the Board shall 
be deemed always to have had, the power to select any persons or classes of 
persons for audit of tax affairs under this section.]  
 
                                           
694 Sub-section (3) inserted by Finance Act, 1999. 
695Sub-section (3) inserted by Finance Act, 1999. 
696 Section 72 inserted by Finance Act, 1998. 
9 Substitued for the Words “Sales Tax” by Finance Act, 2010.  
 
697 Substituted for “sales” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendm ent was made by Finance Amendment) Ordinance, 2010, 
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. 
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made 
through Finance (Amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of 
Pakistan Extraordinary Part I at pages 229 to 259. 
698 Section 72A inserted by Finance Act, 2010 w.e.f. June 5, 2010. The same amendment was made by Finance Amendment) Ordinance, 2 010, 
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 N o. XXII of 2009, dated October 28, 2009, published in the Gazette of 
Pakistan Extraordinary Part I at pages 229 to 259. 
699 New sub-section (1A) added through Finance Act, 2019. 
Sales Tax Act, 1990 
 
 118   
 
 700[72C.  Reward to Inland Revenue Officers and Official s.– (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 l eading 
to such detection, as may be prescribed by the Board, only after realization of part 
or whole of a taxes involve in such cases. 
 
 (2) The Board may, by notification in the official Gazette, prescribed the 
procedure in this behalf and specify the apportionment of reward sanctioned under 
this section for individual performance or to collective welfare of the officers and 
officials of Inland Revenue.] 
 
 701[72D. Reward to whistleblowers.-- (1) The Board may sanction reward to 
whistleblowers in cases of concealment or evasion of tax, tax fraud, corruption or 
misconduct providing credible information leading to such detection of evasion of 
tax fraud. 
 
 (2) The Board may, by notification in the official Gazette, prescribe the 
procedure in this behalf and also specify the apportionment of reward sanctioned 
under this section for whistleblowers. 
 
 (3) The claim for reward by the whistleblower shall be rejected, if- 
   
 (a) the information provided is of no value; 
   
 (b) the Board already had the information; 
 
 (c) the information was available in public records; or 
  
 (d) no collection of taxes is made from the information provided from 
which the Board can pay the reward. 
 
 (4) For the purpose of this section, “whistleblower” means a person who 
reports concealment or evasion of sales tax and tax fraud leading to detection or 
collection of taxes, fraud, corruption or misconduct, to the competent authority 
having power to take action against the person or a sales tax authority committing 
fraud, corruption, misconduct, or involved in concealment or evasion of taxes.] 
 
 702[73. Certain transactions not admissible. – (1) Notwithstanding 
anything contained in this Act or any other law for the time being in force, payment 
of the amount for a transaction exceeding value of fifty thousand rupees  703[in 
aggregate to a single supplier in a tax period], excluding payment against a utility 
                                           
700Section 72C substituted by Finance Act, 2013.  
701 Section 72D added by Finance Act, 2015. 
702 Section 73 substituted by Finance Act, 2004. Earlier it was substituted by Finance Act, 2003, which was 
inserted by Tax Laws (Amendments) Ordinance, 1999. 
703 Words inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 119   
 
bill, shall be made by a crossed cheque drawn on a bank or by crossed bank draft 
or crossed pay order or any other crossed banking instrument showing transfer of 
the amount of the sales tax invoice in favour of the supplier from the business bank 
account of the buyer 704[:] 
  
 705[Provided that online transfer of payment from the business account of 
buyer to the business account of supplier as well as payments through credit card 
shall be treated as transactions through the banking channel, subject to the 
condition that such transactions are verifiable from the bank statements of the 
respective buyer and the supplier.] 
 
 706[Provided further that adjustments made by a registered person in respect 
of amounts payable and receivable to and from the same party shall be treated as 
payments satisfying the provisions of this sub -section subject to following 
conditions, namely:– 
(a) sales tax has been charg ed 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 ca se of a transaction on credit is so 
transferred within one hundred and eighty days of issuance of the tax invoice. 
 
 (3) The amount transferred in terms of this section shall be deposited in 
the business bank account of the supplier, otherwise the supplier  shall not be 
entitled to claim input tax credit, adjustment or deduction, or refund, repayment or 
draw-back or zero-rating of tax under this Act. 
 
 Explanation— For the purpose of this section, the term “business bank 
account” shall mean a bank account utilized by the registered person for business 
transactions, declared to the 707[Commissioner]  in whose jurisdiction he is 
registered 708[through Form STR -1 or change of particulars in registration 
database.]] 
 
                                           
704Substituted for full stop by Finance Act, 2005 
705 Proviso inserted by Finance Act, 2005. 
706 New proviso inserted by Finance Act, 2021. 
707 Substituted for “Collector” by Finance Act, 2010 w.e.f. June 5, 2010, the same amendment was made by Finance Amendment) Ordin ance, 2010, 
promulgated as Ordinance no. III of 2010, the same amendment was made by Finance (Amendment) Ordinance, 2010, promulgated as Ordinance No. 
III of 2010, dated February 6, 2010, published in the official Gazette of Pakistan Extraordinary Part I at pages 23 to 53 and this amendment was made 
through Finance (amendment) Ordinance, 2009, promulgated as Ordinance No. XXII of 2009, dated October 28, 2009, published in the Gazette of 
Pakistan Extraordinary Part I at pages 229 to 259. 
708 Words inserted by Finance Act, 2013. 
Sales Tax Act, 1990 
 
 120   
 
 709[“(4) A registered 710[person] shall not be entitled to deduct input tax 
(credit adjustment or deduction of input tax) which is attributable to such taxable 
supplies exceeding, in aggregate, 711[the amount in a financial year or in a tax 
period, as may be prescribed by the Board,  with the approval of Federal 
Government] as are made to certain person who is not a registered person under 
this Act: 
 
Provided that the aforesaid shall not apply to supplies made to.- 
(a)  Federal / provincial / local Government  departments, 
authorities, etc. not engaged in making  of taxable 
supplies; 
(b)  Foreign Missions, diplomats and privileged persons; 
 712[***] 
(c)  all other persons not engaged in supply of taxable 
 goods; 4[and] 
713(d) persons or classes of person, specified by the B oard 
 through notification in the official Gazette subject 
 to such conditions and restrictions as may be 
 specified therein.] 
 
 714[74. Condonation of time -limit.– Where any time or period has been 
specified under any of the provisions of the Act or rules made there under within 
which any application is to be made or any act or thing is to be done, the 715[Board] 
may, 716[at any time before or after the expiry of such time or period,] in any case 
or class of cases, permit such application to be made or such act or thing to be done 
within such time or period as it may consider appropriate [:] 
 
 Provided that the Board may, by notification in the official Gazette, and 
subject to such limitations or conditions as may be specified therein, empower any 
[Commissioner] to exercise the powers under this section in any case or class of 
cases 717[: 
 
Provided further that regardless of anything stipulated in this section, or 
any provision of this Act, or any other applicable law currently in force, and 
notwithstanding any decision, order or judgement issued by any forum, authority 
or court, the maximum period of extension under this section by the Board or the 
Commissioner, as the case may be, shall not exceed two years in aggregate: 
Provided also that where there are reasons to believe that significant loss 
to exchequer or taxpayer has been caused by an act of omission or commission by 
the registered person or by any authority mentioned in section 30, a committee of 
                                           
709 New sub-section “(4)” inserted through Tax Laws (Amendment) Act, 2020. 
710 Word substituted by Finance Act, 2020. 
711 the expression “the amount in a financial year or in a tax period, as may be prescribed by the Board, with the approval of Federal Government” 
substituted by Finance Act, 2025. 
712 Word “and” omitted and the word “and” inserted by Finance Act, 2020. 
713 New clause (d) inserted by Finance Act, 2020. 
714 Section 74 added by the Finance Ordinance, 2002. 
715 Substituted for the words “Central Board of Revenue” by Finance Act, 2007. 
716 Words added by Finance Act, 2022. 
717 In section 74, in the proviso, for the full stop at the end, a colon substituted and thereafter new provisos inserted by Finance Act, 2025 
Sales Tax Act, 1990 
 
 121   
 
members as notified by the Board may further condone the limitation specified for 
a period as it may deem fit, after providing a reasonable opportunity of being heard 
to the registered person concerned. 
 
 Explanation.– For the purpose of this section, the expression “any act or 
thing is to be done” includes any act or thing to be done by the registered person 
or by the authorities specified in section 30 of this Act.] 
 
 718[74A. Validation.– 719[(1) All notifications and orders issued and notified 
in exercise of the powers conferred upon the Federal Government, before the 
commencement of Finance Act, 720[2018] shall be deemed to have been validly 
issued and notified in exercise of those powers.] 
 
 721[(2) Notwithstanding any omission, irregularity or deficiency in the 
establishment of or conferment of powers and functions on the Directorate General 
(Intelligence and Investigation), Inland Revenue and authorities specified in 
section 30A, all orders passed, notices issued and a ctions taken, before 
commencement of the Finance Act, 2018, in exercise or purported exercise of the 
powers and functions of the officers of Inland Revenue under this Act by the 
Director General (Intelligence and Investigation), Inland Revenue or the 
authorities specified in section 30A shall be deemed to have been validly passed, 
issued and taken under this Act.] 
 
 75. Application of the provisions of Act IV of 1969 to Sales Tax.– The 
Federal Government may, by notification in the official Gazette, declare  that any 
of the provision of the Customs Act, 1969 (IV of 1969), relating to the levy of, and 
exemption from, customs duties, draw -back of duty, warehousing, confiscation, 
and procedure relating to offences and appeals shall, with such modifications and 
alterations as it may consider necessary or desirable to adapt them to the 
circumstances, be applicable in regard to like matters in respect of the tax imposed 
by section 3.] 
 722[76. Fee and service charges.– 3[(1)] The 723[“Board with approval of the 
Federal Minister-in-charge”]  may, by notification in the official Gazette, subject 
to such conditions, limitations or restrictions as it may deem fit to impose, levy fee 
and service charges for valuation, in respect of any other service or control 
mechanism provided by any formation under the control of the Board, including 
ventures of public -private partnership, at such rates as may be specified in the 
notification.]  
 
 724[(2) The Board may authorize and prescribe the manner in which fee and 
service charges collected under sub-section (1) shall be expended.] 
                                           
718 Section 74A inserted through Finance Act, 2017 
719 Existing provision numbered as sub-section (1) by Finance Act, 2018. 
720 Figure substituted by Finance Act, 2018. 
721 New sub-section (2) added by Finance Act, 2018. 
722 New section 76 added through Finance Act, 2019. 
723Words “Federal Government” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 
724 Existing sub-section renumbered as sub-section (1) and new sub-section (2) inserted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 122   
 
 
 725[77. Uniform.– The Board may, by notification in the official Gazette, 
prescribe rules for wearing of uniform by officers and staff of Inland Revenue 
Services.] 
 
 
*************** 
                                           
725 New section 77 added by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 123   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SCHEDULES 
 
The 
FIRST SCHEDULE 
726[***] 
 
The 
SECOND SCHEDULE 
727[***] 
 
 
 
 
728[The  
THIRD SCHEDULE 
See 729[clause (a)] of sub-section (2) of section 3]  
 
                                           
726 The first schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997. 
727 The Second Schedule omitted by Finance Supplementary (Amendment) Act, 1997, with effect from March 28, 1997. 
728 The Third Schedule Substituted by Finance Act, 1998, earlier it was inserted by Finance Act, 1996. 
729 Substituted for the words, brackets and letter “clause (c)” by Finance Ordinance, 2002 
Sales Tax Act, 1990 
 
 124   
 
Serial 
No. 
Description  Heading Nos. of the First 
Schedule to the Customs Act, 
1969 (IV of 1969) 
(1) (2) (3) 
1 Fruit juices and vegetable 
juices  
20.09 
2 Ice Cream.  730[2105.0000] 
3 Aerated waters or beverages.  22.01 and 20.02 
4 Syrups and squashes.  Respective headings 
5 Cigarettes. 2402.2000 
731[ 6 Toilet soap  3401.1100 and 3401.2000] 
732[7 Detergents 733[Respective heading] 
8 Shampoo 3305.1000 
9 Toothpaste 3306.1010 
10 Shaving cream 3307.1000 
11 Perfumery and cosmetics Respective sub-headings of 33.03 
and 33.04.] 
734[12 ***  
13 ***]  
735[14 Tea Respective sub-headings of 09.02 
15 Powder drinks  21.06 
16 Milky drinks 2106.9090] 
736[17 Toilet paper and tissue paper 4818.1000 and 4818.2000] 
737[18. Spices sold in retail packing 
bearing brand names and 
trade marks 
09.04, 09.06, 09.08 and 09.10 
738[19. ***  
20. ***]  
21. Shoe polish and shoe cream 3405.1010] 
 
      
5[22. 
***]  
739[23. ***  
24. ***  
25. ***  
26. ***  
27. ***  
                                           
730 Substituted for the figure “21.05” through Finance Act, 2017 
731 Serial No.6 and entries relating thereto substituted by Finance Act, 2005, earlier these were inserted by Sales 
Tax (Amendment) Ordinance, 2002, dated March 21, 2002. 
732 Serial No.7 to 11 and entries relating thereto added by Finance Act, 2005 
733 Expression substituted by Finance Act, 2022. 
734 Serial No.12 to 13 and entries relating thereto omitted by Finance Act, 2008 
735 Serial No.14 to 16 and entries relating thereto added by Finance Act, 2005 
736 Serial No.17 and entries relating thereto added by Finance Act, 2005 
737 Serial No.18 to 21 and entries relating thereto added by Finance Act, 2006 
738 Serial No.19 to 20 and entries relating thereto omitted by Finance Act, 2008 
739 Serial Nos. 23 to 31, 34 and 35 entries relating thereto omitted by Notification No. S.R.O. 895(I)/2013, dated 4th October, 2013. 
Sales Tax Act, 1990 
 
 125   
 
Serial 
No. 
Description  Heading Nos. of the First 
Schedule to the Customs Act, 
1969 (IV of 1969) 
(1) (2) (3) 
28. ***  
29. ***  
30. ***  
31. ***]  
740[32. ***]  
33. Cement sold in retail 
packing  
Respective heading 
34. ***  
35. ***]  
741[36. ***]]  
742[37. Mineral/bottled water Respective headings] 
743[38. Household electrical goods, 
including air conditioners, 
refrigerators, deep freezers, 
televisions, recorders and 
players, electric bulbs, tube -
lights, electric fans, electric 
irons, washing machines and 
telephone sets. 
Respective headings 
39. Household gas appliances, 
including cooking range, 
ovens, geysers and gas 
heaters. 
Respective headings 
40. Foam or spring mattresses 
and other foam products for 
household use. 
Respective headings 
41. Paints, distempers, enamels, 
pigments, colours, 
varnishes, gums, resins, 
dyes, glazes, thinners, 
blacks, cellulose lacquers 
and polishes sold in retail 
packing 
Respective headings 
42. Lubricating oils, brake 
fluids, transmission fluid, 
Respective headings 
                                           
740 Serial No. 32 and entries relating thereto omitted by Finance Act, 2022. 
741 Serial Nos. 22 and 36 and entries relating thereto omitted Notification No. S.R.O. 681(I)/2013, dated 26th July, 2013. 
742 New Serial number added through Finance Act, 2016 
743 Serial numbers 38 up to 49 and entries relating thereto added through Finance Act, 2019. 
Sales Tax Act, 1990 
 
 126   
 
Serial 
No. 
Description  Heading Nos. of the First 
Schedule to the Customs Act, 
1969 (IV of 1969) 
(1) (2) (3) 
and other vehicular fluids 
sold in retail packing. 
43. Storage batteries excluding 
those sold to automotive 
manufacturers or assemblers 
Respective headings 
44. Tyres and tubes excluding 
those sold to automotive 
manufacturers or assemblers 
Respective headings 
45. Motorcycles Respective headings 
46. Auto rickshaws Respective headings 
47. Biscuits in retail packing 
with brand name 
Respective Headings 
48. Tiles Respective Headings 
49. Auto-parts, in retail packing, 
excluding those sold to 
automotive manufacturers or 
assemblers 
Respective Headings] 
744[50. [***] omitted with effect 
from the 1 st day of 
December, 2021 
Respective heading] 
745[51. DAP Respective Headings] 
74652. Import of pet food including 
of dogs and cats sold in retail 
packing 
2309.1000 
53. Import of coffee sold in retail 
packing 
0901.1100, 0901.1200, 0901.2100, 
0901.2200, 0901.9000,   2101.1120 
54 Import of chocolates sold in 
retail packing 
1704.9010, 1806.2090, 
1806.3100, 1806.3200, 
1806.9000 
55. Import of cereal bars sold in 
retail packing 
1904.1010,   1904.1090, 
1904.2000, 1904.3000, 
1904.9000.”; 
 
The 
 FOURTH SCHEDULE 
747[***] 
 
                                           
744Serial number 50 omitted by Finance (Supplementary) Act, 2022 w.e.f 1st day of December, 2021. 
745 New serial number 51 added by Finance Act, 2024. 
746 Serial number 52,53,54 and 55 and entries relating thereto in columns (2) and (3) inserted by Finance Act, 2025. 
747 Fourth Schedule omitted by Finance Act, 1998. 
Sales Tax Act, 1990 
 
 127   
 
748[The 
 FIFTH SCHEDULE 
[See section 4]  
 
Serial 
No.  
Description 
(1)  (2) 
749[1.  ***]  
2.  Supply to diplomats, diplomatic missions, privileged persons and 
privileged organizations which are covered under various Acts, 
Orders, Rules, Regulations and Agreements passed by the 
Parliament or issued or agreed by the Government of Pakistan.] 
750[3. 
 
***]omitted 
751[4. ***]] 
752[5. Supplies of raw materials 753[, components and goods for further] 
manufacture of goods in the Export Processing Zones.] 
754[6. *****] 
754[6A. ***]omitted 
  755[7. 
  
Supplies made to exporters under the Duty and Tax Remission 
Rules, 2001 subject to the observance of procedures, restrictions 
and conditions prescribed therein.] 
756[8.  
 
 
 
Imports or supplies made to Gawadar Special Economic Zone, 
excluding vehicles falling under heading 87.02 of the Pakistan 
Customs Tariff, subject to such conditions, limitations and 
restrictions as the 757[Board] may impose. ] 
758[8A. Imports or supplies made by, for or to a qualified investment as 
specified at Serial No.1 of the First Schedule to the Foreign 
Investment (Promotion and Protection) Act, 2022 for the period as 
specified in the Second Schedule to the said Act.] 
[9. ***]omitted 
                                           
748 Fifth Schedule added by Finance Act, 1996. 
749 S. Nos. 1 and 6 and entries relating thereto omitted by Finance Act, 2021. 
750Serial number 3 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022.  
751Serial No. 4 and entry relating thereto omitted by Finance Act, 2012 
752 Serial No. 5 added by the Finance Act, 1997. 
753 Substituted for the words “and components for” by the Sales Tax (Amendment) Ordinance, 1999 
754 Serial number(s) 6A and 9 and entries relating thereto in column (2) omitted by Finance (Supplementary) Act, 2022 . 
755Serial No. 7 added by Finance Ordinance, 2001 
756 Serial No. 8 and entries relating thereto inserted by Finance Act, 2004 
757Substituted f Revenue” by Finance Act, 2007 
758 New serial No. 8A added by the Finance Act, 2023 
Sales Tax Act, 1990 
 
 128   
 
Serial 
No.  
Description 
(1)  (2) 
759[10. ******] 
6[11. ****] 
12. The following goods and the raw materials, packing materials, sub-
components, components, sub-assemblies and assemblies imported 
or purchased locally for the manufacture of the said goods, subject 
to the conditions, limitations and restrictions as 760[prescribed by the 
Board]:-- 
 
761[(i) to (ix) [......]] 
 
 762[(x) ... 
 
 (xi) ... 
 
 (xii) ... 
 
 (xiii) ... 
 
 (xiv) ... 
 
 (xv) ... 
 
 (xi) ...] 
 
 (xvii) 763[***]  
        
(xviii) 764[***] 
 
(xix)  765[***] omitted. 
(xx)  [***]. 
(xxi)  [***]  
(xxii) [***] 
(xxiii) [Exercise books (PCT heading 4820.2000) 
(xxiv)   [***] 
(xxv) [***] 
(xxvi) [***]  
                                           
759 S. Nos. 10 and 11 and entries relating thereto omitted by Finance Act, 2021. 
760 Substituted for the word “specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007” through Finance Act, 2019. 
761 Serial numbers (i) to (ix) omitted through Finance Act, 2016. 
762 Clauses (x) to (xvi) omitted by Finance Act, 2015 
763 Clauses (xvii), (xx), (xxi), (xxii), (xxiv), (xxv), (xxvi) and (xxvii) of serial number 12 omitted by Finance Act, 2024. 
764 Serial number (xviii) omitted through Finance Act, 2016.  
765 Clause (xix) omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 129   
 
Serial 
No.  
Description 
(1)  (2) 
(xxvii) [***] 
766[13. Supplies of raw materials, components and goods for further 
manufacture of goods in the Gwadar Free Zone and export thereof, 
provided that in case of supply to tariff area of Pakistan, tax shall be 
charged on the value assessed on the Goods Declaration for import 
14 
 
Supplies of locally manufactured plant and machinery of the 
following specifications, to manufacturers in the Gwadar Free 
Zone, subject to the conditions, restrictions and procedure given 
below, namely:− 
(i) plant and machinery, operated by power of any description, 
as is used for the manufacture or production of goods by 
that manufacturer. 
(ii) apparatus, appliances and equipment specifically meant or 
adapted for use in conjunction with the machinery specified 
in clause (i). 
(iii) mechanical and electrical control and transmission gear, 
meant or adapted for use in conjunction with machinery 
specified in clause (i). 
(iv) parts of machinery as specified in clauses (i), (ii) and (iii), 
identifiable for use in or with such machinery.  
Conditions, restrictions and procedures:− 
(a) the supplier of the machinery is registered under the 
 Act;  
(b) proper bill of export is filed showing registration 
 number;  
(c) the purchaser of the machinery is an established 
manufacturer located in the Gwadar Free Zone and holds a 
certificate from the Gwadar Port Authority to that effect;  
(d) the purchaser submits an indemnity bond in proper form to 
the satisfaction of the conc erned Commissioner Inland 
Revenue that the machinery shall, without prior permission 
from the said Commissioner, not be sold, transferred or 
otherwise moved out of the Gwadar Free Zone before a 
period of five years from the date of entry into the Zone;  
                                           
766 New serial numbers 13 and 14 inserted by Finance Act, 2020 shall have effect from the 1st June, 2020. 
Sales Tax Act, 1990 
 
 130   
 
Serial 
No.  
Description 
(1)  (2) 
(e) if the machinery is brought to tariff area of Pakistan outside 
Gwadar Free Zone, sales tax shall be charged on the value 
assessed on the Goods Declaration for import; and  
(f) breach of any of the conditions specified herein shall attract 
legal action un der the relevant provisions of the Act, 
besides recovery of the amount of sales tax along with 
default surcharge and penalties involved.] 
 
 
  
       
                                           
767 Serial numbers 15 and 18 omitted by Finance (Supplementary) Act, 2022. 
768 Serial number(s) 16, 17 and 21 omitted by Finance Act, 2024. 
769 Serial numbers 17 substituted by Finance Act, 2022. 
770 Serial number 19 omitted by Finance Act, 2022. 
771 New serial number 21 added by Finance Act, 2022. 
767[15. ***]omitted 
76816. [***] omitted 
769[17. [***] omitted 
[18. ***]omitted 
770[19. ***] 
20. Petroleum Crude Oil (PCT heading 2709.0000)]. 
771[21. [***] omitted 
Sales Tax Act, 1990 
 
 131   
 
772[The 
 SIXTH SCHEDULE 
[See section 13(1)] 
 
Table-1  
(Imports or Supplies)  
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
773[1. ***] omitted  
[2. ***] omitted  
[3. ***] omitted  
774[4. ***  
5. ***  
6. ***  
7. ***  
8. ***  
9. ***  
10. ***]  
[11. ***] omitted  
[12. ***] omitted   
77513. ***] omitted  
14. Pulses. 0713.1000, 776[0713.2010, 
0713.2020, 0713.2090], 
0713.3100, 0713.3200, 
0713.3300, 0713.3910, 
0713.3920, 0713.3990, 
0713.4010, 0713.4020, 
0713.5000, 0713.9010, 
0713.9020 and 0713.9090 
777[15. ***]  
                                           
772Sixth Schedule substituted by Finance Act, 2005. Earlier it was substituted by Finance Act, 1998. Originally it 
was inserted by Finance Act, 1996.  
773 Serial number(s) 1,2,3,11 and 12 omitted by Finance (Supplementary) Act, 2022. 
774 S. Nos. 4 to10 and entries relating thereto omitted by Finance Act, 2006  
775 Serial number 13 omitted by Finance Act, 2024. 
776Substituted for the figure and comma “0713.2000” by the Finance Act, 2009 
777 Serial number 15 omitted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 132   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
16. Red chillies excluding those sold 
778[under] brand names and 
trademarks. 
779[0904.2110] and 
780[0904.2210] 
17. Ginger excluding those sold  
781[under] brand names and 
trademarks.  
782[09.10] 
18. Turmeric excluding those sold  
783[under] brand names and 
trademarks. 
0910.3000 
784[19. Rice, wheat, wheat and meslin 
flour 
Respective heading] 
785[20. ***]  
786[21. ***] omitted  
787[22. ***]  
[23. ***] omitted  
773[24. ***]  
788[25. ***]  
795[26. ***]  
795[27. ***]  
789[28. ***]  
 
795[29. ***]  
790[29A. ***  
9B. ***]  
795[29C. ***]  
791[30. ***]  
                                           
778 Word substituted by Finance Act, 2023 
779 Substituted for PCT heading “0904.2010” by the Finance Act, 2012 
780 Substituted for PCT heading “0904.2020” by the Finance Act, 2012 
781 Word substituted by Finance Act, 2023 
782 Substituted for the figure “0910.1000” through Finance Act, 2017 
783 Word substituted by Finance Act, 2023 
784 Serial number 19 substituted by Finance (Supplementary) Act, 2022. 
785 Serial number 20 omitted by Finance (Supplementary) Act, 2022. 
786 Serial number(s) 21and 23 omitted by Finance (Supplementary) Act, 2022. 
787 Serial numbers 22,24,26, 27, 29 and 29C omitted by Finance Act, 2021. 
788 S. No. 25 and the entries relating thereto omitted by the Finance Act, 2013 
789 Serial No. 28 and entries relating thereto omitted by Finance Act, 2015 
790 S. Nos. 29A and 29B omitted by the Finance Act, 2011 
791 S. No. 30 omitted by the Finance Act, 2011 
Sales Tax Act, 1990 
 
 133   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
31. Holy Quran, complete or in parts, 
with or without translation; 
Quranic Verses recorded on any 
analogue or digital media; other 
Holy books.  
792[4901.9910, 8523.2100, 
8523.2910,  
8523.2990, 793[8523.4910], 
794[8523.4920], 
795[8523.4190]  
[...], [...], 8523.4190, 
8523.5910, 8523.5990, 
8523.8010,  
8523.8020 and 8523.8090] 
796[32. Newsprint and books but 
excluding brochures, leaflets and 
directories 
Respective headings] 
33. Currency notes, bank notes, 
shares, stocks and bonds. 
797[49.07] 
798[34. ***  
35. ***]  
799[36. ***]  
800[37. ***]  
38. Monetary gold. 801[7108.1390] 802[and 
7108.2090] 
803[39. ***]  
804[40. ***]  
805[41. ***  
42. ***  
43. ***  
44. ***]  
45. Dextrose and saline infusion 
giving sets 806[***] along with 
empty non-toxic bags for infusion 
solution, Dextrose and saline 
infusion giving sets, Artificial 
 9018.3910, 9018.3920, 
9021.3100, 807[9021.3900] 
and 808[Respective 
headings]  
                                           
792Substituted for the words and figures “4901.9910 and respective headings of 85.24” by the Finance Act, 2007 
793 Substituted for PCT heading “8523.4010” by Finance Act, 2012 
794 Substituted for PCT heading “8523.4030” by Finance Act, 2012 
795 Substituted for PCT heading “8523.4090” by Finance Act, 2012 
796 Serial number 32 substituted by Finance Act, 2022. 
797 Substituted for the figure “4907.0000” by Finance Act, 2017 
798 S. Nos. 34 & 35 omitted by the Finance Act, 2011 
799 Serial number 36 omitted through Finance Act, 2019. 
800 Serial number 37 omitted through Finance Act, 2019. 
801 Substituted for the figure “7108.2000” by Finance  Act, 2017 
802 The word and figures added by the Finance Act, 2007 
803 S. No. 39 and entries relating thereto omitted by Finance Act, 2015 
804 S. No. 40 omitted by the Finance Act, 2006 
805 S. Nos. 41 to 44 omitted by the Finance Act, 2011 
806 The word “imported” omitted by the Finance Act, 2007 
807 Substituted for the figures “9201.3900” by the Finance Act, 2007 
808 Words substituted by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 134   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
parts of the body, Intra -Ocular 
lenses and Glucose testing 
equipment. 
809[46. ***]  
47. Import of articles of household and 
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 do nation to 
welfare projects established in 
Pakistan subject to the similar 
conditions as are envisaged for the 
purposes of applying zero -rate of 
customs duty on such goods under 
the said Act. 
99.05 
48. Goods imported or supplied under 
grants-in-aid for which a specific 
consent has been obtained from the 
810[Board]; supplies and imports 
under agreements signed by the 
Government of Pakistan before the 
30th June, 1996, provided the 
agreements contained the 
provision for exemption of tax at 
the time of signing of agreement. 
99.03 
811[49. ***] omitted  
[50. ***] omitted  
[51. ***] omitted  
[52. ***] omitted  
                                           
809 Serial number 46 omitted by Finance (Supplementary) Act, 2022. 
810 Substituted for the words “Central Board of Revenue” by Finance Act, 2007 
811 Serial number(s) 49 to 57 and 58 omitted by Finance (Supplementary) Act, 2022.  
Sales Tax Act, 1990 
 
 135   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
[52A. ***] omitted  
[53. ***] omitted  
[54. ***] omitted  
[55. ***] omitted  
812[56. Omitted.]  
[57. ***] omitted  
[58. ***] omitted  
59. Artificial kidneys, eye cornea, 
hemodialysis machines, 
hemodialyzers, A.V. fistula 
needles, hemodialysis fluids 813[,] 
and powder, blood tubing tines for 
dialysis and reverse osmosis plants 
for dialysis, double lumen catheter 
for dialysis, catheter for renal 
failure patient and peritoneal 
dialysis solution, 814[cochlear 
implants systems] and angioplasty 
equipment (balloo ns, catheters, 
wires and stents), subject to the 
similar conditions and procedures 
as are envisaged for the purpose of 
applying zero-rate of customs duty 
on these goods under the Customs 
Act, 1969 (IV of 1969). 
99.24 815[, 99.25 816[,99.37] 
and 99.38] 
817[60. ***] omitted  
                                           
812 Serial No. 56 and entries relating thereto omitted by Finance Act, 2015 
 
813 Substituted for the word “and” by the Finance Act, 2008 
814 The comma and words inserted by the Finance Act 2014 
815 Substituted for the word and figures “and 99.25” by the Finance Act, 2008 
816 The comma and figure inserted by the Finance Act 2014 
817 Serial number(s) 60, 61 and 63 omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 136   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
   [61. ***] omitted  
818[62. ***]  
[63. ***] omitted  
819[64. ***  
65. ***  
66. ***  
67. ***  
68. ***  
69. ***  
70. ***.]  
820[71. ***] omitted  
[72. ***] omitted  
821[73. ***]  
73A. ***]  
74. ***]  
75. ***]  
76. ***]  
77. ***]  
78. ***]  
79. ***]  
80. ***]  
[81. ***] omitted  
82. ***]  
83. ***]  
[84. ***] omitted  
822[85. ***]  
82386. ***] omitted  
87. ***] omitted  
88. ***] omitted  
89. Exercise books 4820.2000 
90. ***] omitted  
91. ***]  
[92. ***] omitted  
93 ***]  
94. Wheelchairs 8713.1000 and 8713.9000 
                                           
818 S. No. 62 omitted by the Finance Act, 2011 
819 S. Nos. 64 to 70 omitted by the Finance Act, 2011 
820 Serial number(s) 71, 72, 81, 84 and 92 omitted by Finance (Supplementary) Act, 2022. 
821 Serial numbers 73 to 80, 82, 83 and 85 omitted by Finance Act, 2021. 
822 Serial numbers 85, 91 and 93 omitted by Finance Act, 2021. 
823 Serial numbers 86, 87, 88, 90 and 96 omitted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 137   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
824[95. ***]  
96. ***] omitted  
82597. ***] omitted  
98. ***] omitted  
826[99. ***] omitted  
100. Construction materials to 
827[Gwadar] Export processing 
Zone’s investors and to Export 
Processing Zone 3[Gwadar] for 
development of Zone’s 
infrastructure  
Respective headings 
828[100A Materials and equipment 
829[(plant, machinery, equipment, 
appliances and accessories)] for 
construction and operation of 
3[Gwadar] Port and development 
of Free Zone for 3[Gwadar] Port as 
imported by or supplied to China 
Overseas Ports Holding Company 
Limited (COPHCL) and its 
operating companies namely (i) 
China Overseas Ports Holding 
Company Pakistan (Private) 
Limited (ii) Gwadar International 
Terminal Limited, (iii) Gwadar 
Marin S ervices Limited and (iv) 
Gwadar Free Zone Company 
Limited, their contractors and sub-
contractors; and Ship Bunker Oils 
bought and sold to the ships calling 
on/visiting 3[Gwadar] Port, 830[by 
the aforesaid operating 
companies] having Concession 
Agreement with the Gwadar Port 
Authority, for a period of forty 
year, subject to the following 
Respective Headings 
 
                                           
824 Serial number 95 and entries relating thereto is omitted through Finance Act, 2019. 
825 Serial numbers 97 and 98 omitted by Finance Act, 2024. 
826 Serial number 99 omitted by Finance (Supplementary) Act, 2022. 
827 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017 
828 New serial numbers 100A & 100B added through Finance Act, 2016. 
829 The expression inserted through Finance Act, 2017 
830 The expression inserted by Finance Act, 2020 shall have effect from the 1 st June, 2020.  
Sales Tax Act, 1990 
 
 138   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
conditions and procedure, 
namely,– 
(A).  Conditions and procedure 
for imports.–  
 (i) This exemption shall be 
admissible only to China 
Overseas Ports Holding 
Company Limited 
(COPHCL) and its 
operating companies, their 
contractors and sub -
contractors which hold the 
Concession Agreement;  
(ii) Ministry of Ports and 
Shipping shall certify in the 
prescribed manner and 
format as per Annex -I that 
the imported materials and 
equipments are bonafide 
requirement for 
construction and operation 
of 831[Gwadar] Port and 
development of Free Zone 
for 1[Gwadar] Port. The 
authorized officer of that 
Ministry shall furnish all 
relevant information online 
to Pakistan Customs against 
a specific user ID  and 
password obtained under 
section 155D of the 
Customs Act, 1969 (IV of 
1969). In already 
computerized Collectorate 
or Customs station, where 
the computerized system is 
not operational, the Project 
Director or any other person 
authorized by the Collector  
in this behalf shall enter the 
requisite information in the 
                                           
831 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017 
Sales Tax Act, 1990 
 
 139   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
Customs Computerized 
System on daily basis, 
whereas entry of the data 
obtained from the customs 
stations which have not yet 
been computerized shall be 
made on weekly basis, 
provided that this con dition 
shall not apply to ship 
bunker oils; and  
(iii) The goods so imported 
832[and also those already 
imported under Notification 
No. S.R.O. 115(I)/2008, 
dated the 6th February, 
2008] shall not be sold or 
disposed of without prior 
approval of the FBR and 
payment of sales tax 
leviable at the 1[applicable 
rate on residual value], 
provided that this condition 
shall not apply to ship 
bunker oils.  
 
(B).  Conditions and 
procedure          for local supply.–  
 
(i) This exemption shall be 
admissible only to 
China Overseas Ports 
Holding Company 
Limited (COPHCL) 
and its operating 
companies, their 
contractors and sub -
contractors which hold 
Concession 
Agreement;  
                                           
832 The expression inserted and words substituted by Finance Act, 2020 shall have effect from the 1st June, 
2020. 
Sales Tax Act, 1990 
 
 140   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
(ii)  for claiming 
exemption on goods 
which are otherwis e 
taxable in Pakistan, the 
operating companies 
will purchase the 
materials and 
equipment for the 
construction of 
833[Gwadar] Port and 
development of Free 
Zone for 1[Gwadar] 
Port from the sales tax 
registered persons 
only;  
(iii)  invoice of the exempt 
supply, containing the 
particulars required 
under section 23 of the 
aforesaid Act, shall for 
each supply be issued 
by the registered 
person to the operating 
company mentioning 
thereon that the said 
invoice is being issued 
under this notification;  
(iv) a monthly  statement 
summarizing all the 
particulars of the 
supplies made in the 
month against invoices 
issued to the operating 
companies shall be 
prepared in triplicate 
by the registered 
persons making the 
exempt supplies and 
shall be signed by the 
authorized perso n of 
the registered person. 
                                           
833 Spellings of “Gawadar” corrected as “Gwadar” by Finance Act, 2017  
Sales Tax Act, 1990 
 
 141   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
All three copies of the 
said signed monthly 
statement shall be got 
verified by the 
registered person from 
the person authorized 
to receive the supplies 
in the office of 
operating company, 
confirming that 
supplies mentioned in 
the monthly statement 
have been duly 
received;  
(v) after verification from 
the operating 
company, original 
copy of the monthly 
statement will be 
retained by the 
registered person, 
duplicate by the 
operating company 
and the triplicate 
provided by the 
registered person to 
the Collector of Sales 
Tax having 
jurisdiction, by 
twentieth day of the 
month following the 
month in which 
exempt supplies to the 
operating companies 
were made; and  
(vi) the registered person 
making the exempt 
supplies shall keep the 
aforesaid record for 
presentation to the 
sales tax department as 
and when required to 
do so.  
Sales Tax Act, 1990 
 
 142   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
1[100B] 
 
Supplies made by the 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. 
 
Respective headings 
834[100C. Vehicles imported by China 
Overseas Ports Holding Company 
Limited (COPHCL) and its 
operating companies namely (i) 
China Overseas Ports Holding 
Company Pakistan (Private) 
Limited (ii) Gwadar International 
Terminal Limited, (iii) Gwadar 
Marine Services Limited and (iv) 
Gwadar Free Zone Company 
Limited, for a period of twenty -
three years for construction, 
development and opera tions of 
Gwadar Port and Free Zone Area 
subject to limitations, conditions 
prescribed under PCT heading 
9917 (3)] 
Respective headings 
835[100D Machinery, equipment, 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 C ustoms 
Respective headings 
                                           
834 New S.No. 100C and entries relating thereto inserted through Finance Act, 2017  
835 New serial number 100D inserted by Finance Act, 2020 shall have effect from the 1st June, 2020. 
Sales Tax Act, 1990 
 
 143   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
Act, 1969 (Act IV of 1969) and 
rules made thereunder shall, 
mutatis mutandis , apply provided 
that if any of such goods is taken 
out of the Zone for purpose other 
than the export, the tax on the same 
shall be paid by the importer.] 
836[101. ***]  
837[102. ***] omitted  
838[103. ***]  
[104. ***] omitted  
[105. ***] omitted  
839[106. ***]  
107. Import and supply of iodized salt 
bearing brand names and 
trademarks whether or not sold in 
retail packing. 
2501.0010 
[108. ***]  
840[109. ***] omitted  
[110. ***] omitted  
111. 841[…….] omitted […….] 
112. Following cardiology/cardiac 
surgery, neurovascular, 
electrophysiology, endosurgery,  
endoscopy, oncology, urology, 
gynaecology, disposables and 
other equipment:-- 
A. ANGIOPLASTY   
PRODUCTS 
 
1. Coronary Artery Stents 
2. Drugs Eluting Coronary 
Artery Stents 
3. Coronary Artery Dilatations 
Catheters (Balloons) 
Respective headings 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                           
836 Serial number 101 omitted by Finance Act, 2021. 
837 Serial number(s) 102, 104 and 105 omitted by Finance (Supplementary) Act, 2022.  
838 Serial number 103 omitted by Finance Act, 2021. 
839 Serial numbers 106 and 108 omitted by Finance Act, 2021. 
 
840 Serial number(s) 109 and 110 omitted by Finance (Supplementary) Act, 2022. 
841 Serial No. 111, expression “White crystalline sugar” omitted through Finance Act, 2016. 
Sales Tax Act, 1990 
 
 144   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
4. PTCA Guide Wire 
5. PTCA Guiding Catheters 
6. Inflation Devices/Priority 
Packs 
7. 842[Optical Coherence 
Technology (OCT) System 
8. OCT Catheters 
9. Intravascular Ultrasound 
(IVUS) 
10. Fractional Flow Reserve 
(FFR/IFR) System 
11. IVUS/FFR/IFR Catheters 
and wires 
12. Support Micro Catheters 
(Straight and Angled)  
13. Drug Coated Angioplasty 
Balloon 
14. Coronary and Peripheral 
Micro Coils 
15. Thrombectomy Device 
16. Thrombus Aspira tion 
Catheters 
17. Covered Stents 
(Coronary/Peripheral) 
18. Vessel Closure Devices 
19. Embolic Protection Devices 
20. Renal Stents 
21. Vena-cava Filters 
22. Coronary and Peripheral 
Snares 
23. Atherectomy Devices 
24. IABP Consoles & Catheters 
25. Intracardiac 
Echocardiography Machine 
& Catheters] 
 
B. ANGIOGRAPHY 
PRODUCTS 
 
1. Angiography Catheters 
2. Sheaths 
 
                                           
842 New sub-serial No(s) 7 to.25 under entry A of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. 
Sales Tax Act, 1990 
 
 145   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
3. Guide Wires 
4. Contrast Lines 
5. Pressure Lines 
6. Mannifolds 
7. 843[Wrist Bands for Radial 
Vessel Closure] 
 
C. CONTRAST MEDIA 
FOR 
ANGIOGRAPHY/ANGIO
PLASTY 
 
1. Angiography Accessories 
2. ASD Closure Devices 
3. ASD Delivery Systems 
4. VSD Closure Devices 
5. VSD Delivery System 
6. Guide Wires 
7. Sizing Balloons 
8. Sizing Plates 
9. PDA Closure Devices 
10. PDA Delivery System 
 
D. TEMPORARY 
PACEMAKERS 
     (with leads, connectors and 
accessories) 
 
E. PERMANENT 
PACEMAKER. 
     (with leads, connectors and 
accessories) 
 
F. HEART FAILURE 
DEVICES 
     (with leads, connectors and   
accessories) 
 
G. IMPLANTABLE 
CARDIOVERTES 
                                           
843 New sub-serial No. 7 under entry B of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. 
Sales Tax Act, 1990 
 
 146   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
        (with leads, connectors and 
accessories) 
 
 
 
H. CARDIAC ELECTRO -
PHYSIOLOGY 
PRODUCTS 
 
1. Electrophysiology catheters 
2. Electrophysiology cables 
3. Electrophysiology 
connectors 
4. 844[Excimer Laser System 
with Accessories 
5. Laser Sheath, Occlusion 
Balloons, Dilator Sheaths 
(Rotation & Manual) 
6. Intra Cardiac 
Echocardiography (ICE) 
System and Accessories 
7. Lead Locking Devices a nd 
Accessory Kit 
8. Remote EP Monitoring 
Device and Accessories 
9. Ablation catheters 
10. 3-D Cardiac Mapping 
System 
11. Cryoballoon System and 
Accessories] 
 
I. LEAR  CARDIOLOGY 
PRODUCTS 
 
1. Radioactive isotopes 
 
I. Cold kits (cardiolotic MAA, 
DTPA etc.) 
 
J. CARDIAC SURGERY 
PRODUCTS 
                                           
844 New sub-serial No(s) 4 to 11 under entry H of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. 
Sales Tax Act, 1990 
 
 147   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
 
1. Oxygenators 
2. Cannulas 
3. Prosthetic Heart Valves 
4. Luminal shunts for heart 
surgery 
5. Artificial limbs and 
appliances 
6. 845[High-Flow, Low -Profile 
Percutaneous Heart Pump 
PHP Console and Catheters 
7. Tandem Heart / Tandem 
Lung and Accessories 
8. Ventricular Assist  Device 
System 
(a) Heart Mate-II 
(b) Heart Mate-III 
(c) Centri Meg LEOV 
 
9. Beating Heart Surgery 
stabilizers & Coronary 
Shunts 
10. Minimally invasive surgery 
equipment & Instruments 
 
11. RF Ablation equipment for 
AF (Surgical) 
12. Heart Lung Machines] 
 
K. EQUIPMENT  
 
1. Cardiac Angiography 
Machine 
2. Echocardiography Machines 
3. ETT Machines 
4. Gamma Camera for Nuclear 
Cardiology Studies 
5. 846[Left Ventricular Assist 
Device / System (LVAD) 
and Catheters 
                                           
845 New sub-serial No(s) 6 to 12 under entry J of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. 
846 New sub-serial No(s) 5 to 18 under entry K of S.No. 112 and entries relating thereto added by Finance Supplementary (Amendment) Act, 2018. 
Sales Tax Act, 1990 
 
 148   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
6. MitraClipTranscatheter 
Mitral Valve System 
7. MitraClip Guide Catheter, 
Clip and Delivery System 
8. Patent Foramen Ovale 
(PFO) Closure Device 
9. Left Atrial Appendage 
(LAA) Occluder 
10. Transcatheter Aortic / Heart 
Valve System 
(TAVI/TAVR) 
11. Cerebral Retrievable Stents 
12. Aortic Stent Grafts 
 
13. Embolization Coils, 
Delivery Sys tem, 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 homeo static valves), 
connecting cables, inflation 
Sales Tax Act, 1990 
 
 149   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
devices adapters 847[“Drug Eluting 
Peripheral Stents”].  
848[113. ***] omitted  
[114. ***[ omitted  
849[115. ***]  
[116. ***] omitted  
  [117. ***] omitted  
850118. [omitted] [......] 
119. 851[.......] omitted [......] 
852120. ***]  
121. Blood Bag CPDA -1 with blood 
transfusion set pack in aluminium 
foil with set. 
 
853[Explanation.– For removal of 
doubt, it is clarified that the blood 
transfusion sets not packed in 
aluminum foil imported with 
blood bags CPDA -1, in 
corresponding quantity in same 
consignment are also exempt] 
Respective headings 
122. Urine drainage bags Respective headings 
854[123. ***]  
[124. ***]  
[125. ***]  
855[126. ***] omitted  
127. ***] omitted  
856[128. ***]  
129. ***] omitted  
857[130. ***] omitted  
[131. ***] omitted  
                                           
847 Words “Drug Eluting Peripheral Stents” under entry L of S.No. 112 added by Finance Supplementary 
(Amendment) Act, 2018. 
848 Serial number(s) 113, 114, 116, and 117 omitted by Finance (Supplementary) Act, 2022. 
849 Serial number 115 omitted by Finance Act, 2021. 
850 S.No. 118 omitted by Finance Supplementary (Second Amendment) Act, 2019 
851 Serial No. 119, expression “Tubular day..” omitted through Finance Act, 2016. 
852 Serial number 120 omitted by Finance Act, 2024. 
853 Explanation added by Finance Act, 2023 
854 Serial numbers 123 to 125 omitted by Finance Act, 2021. 
855 Serial number(s) 126, 127 and 129 omitted by Finance (Supplementary) Act, 2022.  
856 Serial number 128 omitted by Finance Act, 2021. 
857 Serial number(s) 130 to 132 omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 150   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
[132. ***] omitted  
133. Pesticides and their active 
ingredients registered by the 
Department of Plant Protection 
under the Agricultural Pesticides 
Ordinance, 1971(II of 1971), 
stabilizers, emulsifiers and 
solvents, namely:− 
 
38.08 
Xylol (xylenes) 2707.3000 
- Beta Pinene / Agrotin 527 / 
Terpenic derivative 
2902.1990 
 Toluene 2902.3000 
Mixed xylene isomers 2902.4400 
Naphthalene 2902.9010 
Solvesso-100, 150, 200 2902.9090 
858[..] 3[..] 
859[..] 4[..] 
Methanol (methyl alcohol) 2905.1100 
 
Propylene glycol (propane -1, 2-
diol) 
2905.3200 
- Adhesives Polyvinyl Acetate 
- Polyvinyl Alcohol 
2905.4900 
Ingredients for pesticides 2906.2910 
Other ingredients for pesticides 2906.2990 
- Solvenon MP / 1 -Methoxy 2 -
Propanol 
- Methyglycol Acetate 
2909.4910 
Methanal (formaldehyde) 2912.1100 
Cyclo-hexanone and methyl - 
cyclo-hexanones 
2914.2200 
- Cyclohexanon 
- Cyclohexanone Mixed petroleum 
Xylene (1,2 & 1,3 & 1,4 dimethyl 
benzene and ethyle benzene) 
2914.2990 
Acetic anhydride 2915.2400 
Ingredients for pesticides 2916.3920 
Dioctyl orthophthalates 2917.3200 
                                           
858 The words “ingredients for pesticides” and the figure “2903.3040” omitted by Finance Act, 2017 
859 The words “Cadusafos Technical Material” and figure “2903.6900” omitted by Finance Act, 2017 
Sales Tax Act, 1990 
 
 151   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
860[..] 1[..] 
 861[..] 2[..] 
862[..] 3[..] 
Endosulfan Technical Material 2920.9020 
Other ingredients for pesticides 2920.9090 
Diethylamine and its salts 2921.1200 
Ingredients for pesticides 2921.4310 
Other Ingredients for pesticides 2921.4390 
Ingredients for pesticides 2921.5110 
863[..] 1[..] 
Dimethyl Formamide (DMF) 2924.1990 
864[..] 2[..] 
Other Ingredients for pesticides 2924.2990 
Alpha cyano, 3-phenoxybenzyl (-) 
cis, trans 3-(2,2-diclord vinyl) 2,2 
dimethyl cyclopropane 
carboxylate 
2926.9010 
(S) Alpha cyano, 3-phenoxybenzyl 
(S)-2-(4, chloro phenyl) -3 mehtyl 
butyrate 
2926.9020 
Cyano, 3 -phenony benzyl 2,2,3,3 
tetra methyl cyclopropane 
carboxalate 
2926.9030 
 - Cypermethrin, Alpha 
Cypermethrin, Beta -
Cypermethrin, Zeta -
Cypermethrin, Lambda 
Cylalothrin, Deltamethrin, 
Fenpropathrin, Esfenvalerate, 
Bifenthrin 
Technical Material - Acetamiprid, 
Imidacloprid Technical Material- 
Monomehypo, Chlorothalonil 
Technical Material- 
Bromoxynil Technical Material 
2926.9050 
 Other nitrite compounds- 
Cyfluthrin, Beta Cyfluthrin 
Technical Material 
2926.9090 
                                           
860 The words “ingredients for pesticides” and the figure “2918.9010” omitted by Finance Act, 2017 
861 The words “ingredients for pesticides” and the figure “2919.0010” omitted by Finance Act, 2017 
862 The words “other ingredients for pesticides” and the figure “2919.0090” omitted by Finance Act, 2017 
863 The words “Tiethanolamine and its salts” and the figure “2922.1300” omitted by Finance Act, 2017 
864 The words “ingredients for pesticides” and the figure “2924.2930” omitted by Finance Act, 2017 
Sales Tax Act, 1990 
 
 152   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
2-N, N-Dimethyl amino-I sodium 
thiosulphate, 3-thiosulfourropane 
2930.2010 
Ingredients for pesticides 2930.2020 
2- N,N-dimethyamino 1,3 
disodium thiosulphate propane 
2930.9010 
Other orgonosulpher compounds 
- Ethion, Methamidophos 
Technical Material 
- Dimethysulfoxid 
865[Respective headings] 
Ingredients for pesticides 866[Respective headings] 
Other Ingredients for pesticides 867[Respective headings] 
Ingredients for pesticides 868[Respective headings] 
2,3 Dihydro 2-2 dimethyl-7 benzo 
furanyl methyl-carbamate 
2932.9910 
Other ingredients for pesticides 
- Carbosulfan Technical Material 
2932.9990 
 Fipronil 2933.1900 
Ingredients for pesticides 869[Respective headings] 
Other Ingredients for pesticides 2933.3990 
- Chlorpyrifos, Triazophos, 
Diazinon Technical Material 
2933.5950 
Other Ingredients for pesticides 2933.5990 
Pyrimethanine 2933.6910 
Ingredients for pesticides 2933.6940 
- Atrazine Technical Material 2933.6990 
Isatin (lactam of istic acid) 2933.7910 
1-Vinyl-2-pyrrol-idone 2933.7920 
- Triazophos Technical Material 2933.9910 
Ingredients for pesticides 2934.1010 
Ingredients for pesticides 2934.9920 
-Methyl benzimidazol – 2 – 
ylcarbamate. 
-Dicopper chloride trihydroxide 
2938.9010 
Ingredients for pesticides 870[2939.8010] 
                                           
865 For expression, words “respective headings” substituted by Finance Act, 2022. 
866 For expression, words “respective headings” substituted by Finance Act, 2022. 
867 For expression, words “respective headings” substituted by Finance Act, 2022. 
868 For expression, words “respective headings” substituted by Finance Act, 2022. 
869 For expression, words “respective headings” substituted by Finance Act, 2022. 
 
870 Substituted for the figure “2939.9910” by Finance Act, 2017 
Sales Tax Act, 1990 
 
 153   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
- Abamectin, Emamectin 
Technical Material 
871[Respective headings] 
Other Ingredients for pesticides 2941.9090 
Sulphonic acid (Soft) 872[Respective headings] 
Other surface active agents 873[Respective headings] 
Catonic 874[Respective headings] 
Non ionic surface active agents 875[Respective headings] 
 Other organic surface active 
agents 
876[Respective headings] 
3402.9000 
Chemical preparations 877[3824.9999] 
Solvent C-9  2707.5000 
878[White spirit 2710.1240 
Solvent oil 2710.1250] 
879[134. ***] omitted  
[135. ***] omitted  
[136. ***] omitted  
880[137. Paper weighing 60 g/m2, art paper, 
printing paper and art card for 
printing of Holy Quran imported 
by Federal or Provincial 
Governments and Nashiran -e-
Quran as per quota determined by 
IOCO 
4802.5510, 4810.1990, 
4810.1910, 4802.6990 and 
4810.2900.] 
881[138. ***] omitted  
[139. ***] omitted  
[140. ***] omitted  
[141. ***] omitted  
[142. ***] omitted  
143. (i) Hearing aids (all types and 
kinds) (ii) Hearing assessment 
equipment; 
(a) Audiometers 
(b) Tympanometer  
9937 
                                           
871 For expression, words “respective headings” substituted by Finance Act, 2022. 
872 For expression, words “respective headings” substituted by Finance Act, 2022. 
873 For expression, words “respective headings” substituted by Finance Act, 2022. 
874 For expression, words “respective headings” substituted by Finance Act, 2022. 
875 For expression, words “respective headings” substituted by Finance Act, 2022. 
876 For expression, words “respective headings” substituted by Finance Act, 2022. 
877 Substituted for the figure “3824.9099” by Finance Act, 2017 
878 New entries inserted by Finance Act, 2021. 
879 Serial number(s) 134 to 136 omitted by Finance (Supplementary) Act, 2022. 
880 S.No. 137 and entries relating thereto substituted by Finance Act, 2022. 
881 Serial number(s) 138 to 142 omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 154   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
(c) ABR 
(d) Oto Acoustic Omission 
144. Liquefied Natural Gas imported by 
fertilizer manufacturers for use as 
feed stock 
2711.1100 
145. Plant, machinery, equipment 
including dumpers and special 
purpose motor vehicles, if not 
manufactured locally, imported by 
M/s China State Construction 
Engineering Corporation Limited 
(M/s CSCECL) for the 
construction of Karachi – 
Peshawar Motorway (Sukkur  – 
Multan Section) and M/s China 
Communication Construction 
Company (M/s CCCC) for the 
construction of Karakorum 
Highway (KKH) Phase-II (Thakot 
- Havellian Section)  subject to the 
following conditions: 
(i)  that the exemption under 
this serial number shall 
only be available to  
contractors named above; 
(ii)  that the equipment and 
construction machinery 
imported under this serial 
number shall only be used 
for the construction of the 
respective allocated 
projects;  
(iii)  that the importer shall 
furnish an indemnity 
bond, in the prescribed 
manner and format as set 
out in Annex -A, at the 
time of import to the 
extent of sales tax  
exempted under this serial 
number on consignment to 
consignment basis; 
Respective heading 
Sales Tax Act, 1990 
 
 155   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
(iv)  that the Ministry of 
Communications shall 
certify in the prescribed 
manner and format as set 
out in Annex -B that the 
imported equipment and 
construction machinery 
are bona fide requirement 
for construction of Sukkur 
– Multan Section (392.0 
km) of Karachi – 
Peshawar Motorway or for 
the construction  of 
Karakorum 
Highway(KKH) Phase-II - 
Thakot to Havellian 
Section (118.057 km) as 
the case may be;  
(v)  for the clearance of 
imported goods through 
Pakistan Customs 
Computerized System the 
authorized officer of the 
Ministry shall furnish all 
relevant information, as 
set out in Annex-B, online 
against a specific user ID 
and password obtained 
under section 155D of the 
Customs Act, 1969 (IV of 
1969). In Collectorates or 
Customs stations where 
the Pakistan Customs 
Computerized System is 
not operational, the 
Director Reforms and 
Automation or any other 
person authorized by the 
Collector in this behalf 
shall enter the requisite 
information in the 
Pakistan Customs 
Computerized System on 
Sales Tax Act, 1990 
 
 156   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
daily basis, whereas entry 
of the data obtained from 
the customs stations which 
have not yet been 
computerized shall be 
made on weekly basis;  
(vi)  that the equipment and 
construction mac hinery, 
imported under this serial 
number, shall not be re -
exported, sold or 
otherwise disposed of 
without prior approval of 
the FBR. In case goods are 
sold or otherwise disposed 
of with prior approval of 
FBR the same shall be 
subject to payment of 
sales t ax  as may be 
prescribed by the FBR; 
(vii)  in case the equipment and 
construction machinery, 
imported under this serial 
number, is sold or 
otherwise disposed of 
without prior approval of 
the FBR in terms of para 
(vi) above, the same shall 
be subject to payment of 
statutory rates of sales tax  
as were applicable at the 
time of import;  
(viii)  notwithstanding the 
condition at para (vi) and 
(vii) above, equipment 
and construction 
machinery, imported 
under this serial number, 
may be surrendered at any 
time to the Collecto r of 
Customs having 
jurisdiction, without 
payment of any sales tax  , 
Sales Tax Act, 1990 
 
 157   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
for further disposal as may 
be prescribed by the FBR;  
(ix)  the indemnity bond 
submitted in terms of para 
(iii) above by the importer 
shall be discharged on the 
fulfillment of conditions 
stipulated at para (vi) or  
(vii) or (viii) above, as the 
case may be; and  
(x)  that violation of any of the 
above mentioned 
conditions shall render the 
goods liable to payment of 
statutory rate of sales tax  
leviable on the date of 
clearance o f goods in 
addition to any other penal 
action under relevant 
provisions of the law. 
882[146. ***] omitted  
147. Goods supplied to German 
Development Agency (Deutsche 
Gesellschaft für Internationale 
Zusammenarbeit) GIZ 
Respective heading 
148. Imported construction materials 
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 fulfilmen t 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 
Respective heading 
                                           
882 Serial number 146 omitted by Finance (Supplementary) Act, 2022. 
 
Sales Tax Act, 1990 
 
 158   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
the project shall not exceed  ten 
thousand eight hundred ninety -
eight million rupees including the 
benefit of exemption from duties 
and taxes availed before 30th June, 
2018 under the provisions of the 
Sales Tax Act, 1990, the Customs 
Act, 1969, the Federal Excise Act, 
2005 and the Inc ome Tax 
Ordinance, 2001 and Notifications 
issued thereunder; 
883[149. ***] omitted  
[150 ***] omitted  
884[151. ***] omitted  
152. Supplies of electricity, as made 
from the day of assent to the 
Constitution (Twenty -fifth 
Amendment) Act, 2018, till 
885[30th June, 2026], to all 
residential and commercial 
consumers in tribal areas, and to 
such industries in the tribal areas 
which were set and started their 
industrial production before 31st 
May, 2018, but excluding steel and 
ghee or cooking oil industries 
2716.0000 
886[153. ***]  
887[154. Dietetic foods intended for 
consumption by children suffering 
from inherent metabolic disorder 
subject to the conditions that the 
importer shall acquire approval 
and quota from Ministry of 
National Health Services, 
Regulations and Coordination. 
 
Respective heading 
888[155. ***] omitted  
                                           
883 Serial number 149 and 150 omitted by Finance (Supplementary) Act, 2022. 
884 Serial number 151 omitted by Finance Act, 2025. 
885 Expression substituted by Finance Act, 2025. 
886 Serial number 153 omitted by Finance Act, 2021. 
887 New serial numbers 154 to 156 inserted by Finance Act, 2020. 
888 Serial number 155 omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 159   
 
Serial 
No 
Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
889[156. Import of CKD kits by local 
manufacturers of following 
Electric Vehicles:– 
Respective heading] 
(i) Road Tractors for semi -
trailers (Electric Prime Movers) 
 
(ii) Electric Buses   
(iii) Three Wheeler Electric 
Rickshaw  
 
(iv) Three Wheeler Electric 
Loader  
 
(v) Electric Trucks   
(vi) Electric Motorcycle   
890[157. Import of CKD (in kit form) of 
following electric vehicles (4 
wheelers) by local manufacturers 
till 30th June, 2026: 
(i) Small cars/SUVs with 50 
Kwh battery or below; 
and  
(ii) Light commercial vehicles 
(LCVs) with 150 kwh 
battery or below 
Respective headings 
891[158. ***] omitted  
892[159. ***] omitted  
910[160. ***] omitted  
161. Import of plant, machinery, 
equipment and raw materials for 
consumption of these items within 
Special Technology Zone by the 
Special Technology Zone 
Authority, zone developers and 
zone enterprises 
Respective headings 
162. Import of raw materials, 
components, parts and plant and 
machinery by registered persons 
authorized under Export 
Facilitation Scheme, 2021 
notified by the Board with such 
Respective headings] 
                                           
889 Serial number 156 substituted by Finance (Supplementary) Act, 2022. 
890 New serial numbers 157 to 162 inserted by Finance Act, 2021. 
891 Serial number 158 omitted by Finance (Supplementary) Act, 2022. 
892 Serial numbers 159 & 160 omitted by Finance Act, 2023 
Sales Tax Act, 1990 
 
 160   
 
conditions, limitations and  
restrictions. 
893[163. Goods imported by various 
agencies of the United 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: 
 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 sha ll 
be available with effect from the 
15th day of January, 2022. 
99.01, 99.02, 99.03 and 
99.06 
894164. ***] omitted  
165. Goods imported by or 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). 
99.13 and 99.14, 
166. Goods excluding electricity and 
natural gas supplied to hospitals 
run by the ch aritable hospitals of 
fifty beds or more. 
Respective headings 
167. Goods temporarily imported into 
Pakistan, meant for subsequent 
exportation charged to zero -rate 
of customs duty subject to the 
similar restrictions, limitations, 
conditions and procedures as are 
envisaged for the purpose of 
applying zero -rate of customs 
duty on such goods under the 
Customs Act, 1969 (IV of 1969). 
99.19, 99.20 and 99.21 
                                           
893 New serial number(s) 163 to 174 added by Finance Act, 2022. 
894 Serial number 164 omitted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 161   
 
168. Fertilizers 895[excluding DAP] Respective headings 
896169. ***] omitted  
170. ***] omitted  
171. Seeds for sowing  Respective heading 
172. Machinery, equipment and 
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. 
Respective headings 
173. Goods produced or manufactured 
in and exported from Pakistan 
which are subsequently imported 
in Pakistan within one year of 
their exportation, provided 
conditions of se ction 22 of the 
Customs Act, 1969 (IV of 1969), 
are complied with. 
Respective headings 
174. ***]  
897[175. Import of all goods received, in 
the event of a natural disaster or 
other catastrophe, as gifts and 
relief consignments or any goods 
received as gift or donation from a 
foreign government or 
organization by the Federal or 
Provincial Governments or any 
public sector organization. 
Subject to the recommendations 
of the Minister Incharge and 
concurrence by the Federal Board 
of Revenue subject to condition 
that the concerned Ministry shall 
9908(i) and 9911 
                                           
895 Words added by Finance Act, 2023 
896 Serial numbers 169, 170 and 174 omitted by Finance Act, 2024. 
897 Serial number(s) 175 to 180 inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 162   
 
verify the genuineness of such 
cases and furnish an undertaking 
to the ef fect that donated goods 
shall not be sold, utilized or 
9908(i) and 9911.”. disposed of 
otherwise than for the purpose for 
which the same have been 
imported. 
176. POL products:  
(i) MS (Petrol)  
(ii) High Speed Diesel Oil  
(iii) Kerosene  
(iv) Light Diesel Oil 
 
2710.1210,  
2710.1931,  
2710.1911 and  
2710.1921 
177. Supply of electricity to Azad 
Jammu and Kashmir 
Respective headings 
178. Import of gold under entrustment 
scheme under SRO 760(I)/2013 
Respective heading 
179. Import of cystagon, cysta  drops 
and trientine capsules 898[omitted] 
3004.9099 
180. Bovine semen 0511.1000.] 
899[181. Import or lease of aircrafts and 
parts thereof by Pakistan 
International Airlines Corporation 
Limited (PIACL) 
8802.1200 
8802.3000 
8802.4000”; 
                                           
898 The expression “(for personal use only)” omitted by Finance Act, 2025. 
899 S.No. 181 and entries relating thereto in columns (1), (2) and (3) inserted by Finance Act, 2025 
Sales Tax Act, 1990 
 
 163   
 
900[Annex-I 
[See serial No. 100A & 100B] 
 
Header Information 
NTN/FTN of Importer Approval No. 
(1) (2) 
Details of materials and equipments (to be filled in 
by the authorized officer of the Ministry of Ports 
and Shipping) 
Goods imported (Collectorate 
of import) 
HS code 
Description 
Specs 
Customs duty 
rate 
(applicable) Rate of sales 
tax 
WHT 
Quantity 
UOM 
Quantity 
imported 
Collectorate 
CRN/ 
Mach No. 
Date of CRN/ 
Mach No. 
(3) (4
) 
(5
) 
(6) (7
) 
(8
) 
(9) (10
) 
(11
) 
(12
) 
(13) (14
) 
 
Header Information 
NTN/FTN of Importer Approval No. 
(1) (2) 
Details of materials and equipments 
(to be filled in by the authorized officer 
of the Ministry of Ports and Shipping) 
Goods imported (Collectorate 
of import) 
HS code 
Description 
Specs 
Customs duty 
rate 
(applicable) 
Rate of sales 
tax 
WHT 
Quantity 
UOM 
Quantity 
imported 
Collectorate 
CRN/ 
Mach No. 
Date of CRN/ 
Mach No. 
(3
) 
(4
) 
(5
) 
(6) (7) (8
) 
(9
) 
(10
) 
(11
) 
(12
) 
(13
) 
(14) 
 
NOTE 1.–  Before certifying, the authorized officer of the Ministry of 
Ports and Shipping shall ensure that the goods are genuine 
and bona fide requirement for construction and operation 
of Gwadar Port and development of Free Zone for 
Gwadar Port. 
   Signature________________________ 
Designation ________________________  
NOTE 2.–  In case of clearance through Pakistan Customs Computerized System, 
the above information shall be furnished online against a specific user I.D. and 
password obtained under section 155D of the Customs Act, 1969 (IV of 1969). 
                                           
900 Annexure-I inserted through Finance Act, 2016. 
Sales Tax Act, 1990 
 
 164   
 
901[Annex-A 
[See condition 145(iii)] 
 
INDEMNITY BOND 
(On appropriately stamped non-judicial paper) 
THIS DEED OF INDEMNITY is made on the _________ date of 
__________BETWEEN Messrs___________ having registered office at 
_________(hereinafter called "the importers" which means and includes their 
successors, administrators, exec utors 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 Se ction (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 ab ove mentioned project(s) in accordance with the 
conditions given in the said serial number 145 or serial number 148 of this table, 
as the case may be;  
NOW, THEREFORE, in consideration of the release of the equipment and/or 
construction machinery without recovery of leviable sales tax, the importers bind 
themselves to pay on demand to the Government of Pakistan the sum of Rs. 
__________ being the sales tax and charges leviable on the machinery, if the 
importers fail to fulfill the condition (vi) or (vii) or (viii) of the said serial number 
145 or serial number 148 of this table, as the case may be.  
 
The importers further agree and bind themselves that the amount covered by this 
Bond shall be recovered as arrears of sales tax under section 202 of the Customs  
Act, 1969. This Bond shall become void when the Collector of Customs is satisfied 
that the importers have fulfilled all the conditions of the said serial number 145 or 
serial number 148 of this table, as the case may be.  
Signed by importers on this ____________________ day of _____________201_. 
 
                                           
901 New Annexures A, B, C & D inserted by Finance Act, 2018. 
Sales Tax Act, 1990 
 
 165   
 
 
Managing Director 
(Name and permanent address) 
Collector of Customs (On behalf of 
President) 
Witness_____________________________________________________ 
(signature, name, designation and full address)  
Witness_____________________________________________________ 
(signature, name, designation and full address) 
 
Note: The bond shall be written on appropriate non-judicial stamp paper and shall 
be witnessed by a Government servant in BPS 17 or above, an Oath Commissioner, 
a Notary Public or an officer of a Schedule Bank. 
 
Annex-B 
[See condition 145 (iv) and (v)] 
 
NTN or FTN of Importer Approval No. 
(I) (II) 
Details of input goods (to be filled by the authorized officer of the 
Regulatory Authority) to be imported 
Description 
and 
specifications. 
Quantity/UOM L/C No. or 
bank 
contract 
No. and 
B/L. 
IGM No. 
Date & 
Index No. 
Remarks, if 
any. 
(1) (2) (3) (4) (5) 
CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY 
AUTHORITY: 
 
It is hereby certified that the description, quantity and other details 
mentioned above are true and correct. Goods imported are in commensuration with 
the project 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 
Sales Tax Act, 1990 
 
 166   
 
[See condition 146(b)] 
 
INDEMNITY BOND 
 
(On appropriately stamp non -judicial paper attested by a Government servant in 
BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a 
Scheduled Bank) 
 
THIS DEED OF INDEMNITY is made on the _________ date of 
__________BETWEEN Messrs___________ having registered office at 
_________ (hereinafter called "the importers" which means and includes their 
successors, administrators, executors and assignees) of the  one part, AND the 
President of the Islamic Republic of Pakistan through the Collector of Customs 
_________ (hereinafter called the "Collector of Customs"), of the other part.  
 
WHEREAS the Federal Government, by its decision contained in serial number 
146 and subject to the conditions given in the said serial number 146, has been 
pleased to direct that such equipment shall be exempt from the whole of sales tax 
leviable thereon, in accordance with the said serial number 146, if imported for 
Lahore Orange Line Metro Train Project.  
 
AND WHEREAS M/S.____________, the importers have imported the equipment 
mentioned in the said serial number 146 for the above mentioned project in 
accordance with the conditions given in the said serial number 146;  
 
NOW, THEREFORE, in consideration of the release of the equipment without 
recovery of leviable sales tax, the importers bind themselves to pay on demand to 
the Government of Pakistan the sum of Rs. __________ being the sales tax and 
charges leviable on the equipment, if  the importers fail to fulfill the condition (f) 
or (g) or (h) of the said serial number 146, as the case may be.  
 
The importers further agree and bind themselves that the amount covered by this 
Indemnity Bond shall be recovered as arrears of sales tax under section 202 of the 
Customs Act, 1969. This Bond shall stand revoked automatically when the 
Collector of Customs is satisfied that the importers have fulfilled all the conditions 
of the said serial number 146.  
 
Signed by importers on this ______________ day of _________________201_. 
 
Managing Director or person next in hierarchy duly authorized by MD 
 
(Name and permanent address) 
Collector of Customs 
(On behalf of President) 
 
Witness(1)___________________________________________________ 
(signature, name, designation and full address)  
Sales Tax Act, 1990 
 
 167   
 
Witness(2)__________________________________________________ 
(signature, name, designation and full address) 
 
 
 
 
Annex-D 
[See conditions 146 (c) and (e)] 
 
NTN or FTN of Importer Approval No. 
Details of equipment (to be filled by the authorized officer of the Regulatory 
Authority) to be imported 
Description 
and 
specifications. 
Quantity/UOM L/C No. or 
bank 
contract 
No. and 
B/L. 
IGM No. 
Date & 
Index No. 
Remarks, if 
any. 
(1) (2) (3) (4) (5) 
 
CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY 
AUTHORITY: 
 
It is hereby certified that the description, quantity and other details mentioned 
above are true and correct. Goods imported are in commensuration with the project 
requirements and are bona fide requirement of the Project under the Contract. It is 
further certified that the above items shall not be used for any other purpose except 
for the Project. 
  
Signature:   ________________________ 
Name and Designation:  ________________________ 
Official Stamp:   ________________________ 
   Date:            ________________________”] 
  
 
Sales Tax Act, 1990 
 
 168   
 
Table-2 
(Local Supplies only) 
 
Serial No Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
902[1. ***] omitted  
[2. ***] omitted  
903[3. 904[Supplies made by cottage 
industry.]  
Respective headings.] 
[4. ***] omitted  
905[5. ***]  
6. Supply of fixed assets 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. 
Respective headings. 
9067. ***]  
08. Foodstuff cooked or prepared 
in-house and served in messes 
run on the basis of mutuality 
and industrial canteens for 
workers. 
Respective headings. 
[9. ***] omitted  
10. Agricultural produce of 
Pakistan, not subjected to any 
further process of 
manufacture. 
Respective headings. 
907[11. 
   
***]  
908[12. 
 ] 
***]  
909[910[13. ***  
2[14. ***]  
911[15. ***] omitted  
                                           
902 Serial number(s) 1, 2 and 4 omitted by Finance (Supplementary) Act, 2022. 
903 S. No. 3 substituted by the Finance Act, 2007 
904 Substituted by the Finance Act, 2014 
905 S. No. 5 omitted by the Finance Act, 2011 
906 Serial number 7 omitted by Finance Act, 2024. 
907 S. No. 11 omitted by the Finance Act, 2022. 
908 S. No. 12 omitted by the Finance Act, 2013 
909 S. Nos. 13 to 16 added by the Finance Act, 2014 
910 S. No. 13 & 14 omitted by the Finance Act, 2015 
911 Serial number(s) 9, 15 and 16 omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 169   
 
Serial No Description Heading Nos. of the First 
Schedule to the Customs 
Act, 1969 (IV of 1969) 
(1) (2) (3) 
[16. ***] omitted  
912[17. ***]  
18. ***]  
19. ***]  
20. ***]  
913[21. ***]  
914[22. ***] omitted  
[23. ***] omitted  
 [24. ***]  
[25. ***]  
915[26. Supply of locally produced silos 
till 30.06.2026 
Respective heading 
27. Wheat Bran  916[This exemption 
shall apply from the 1st day of 
July, 2018] 
2302.3000 
28. Sugar beet 1212.9100 
29. Fruit juices, whether fresh, 
frozen or otherwise preserved but 
excluding those bottled, canned 
or packaged. 
2009.1100, 2009.1200, 
2009.1900, 2009.2100, 
2009.2900, 2009.3100, 
2009.3900, 2009.4100, 
2009.4900, 2009.5000, 
2009.6100, 2009.6900, 
2009.7100, 2009.7900, 
and 2009.9000 
30. Milk and cream, concentrated or 
containing added sugar or other 
sweetening matter, excluding 
that sold in retail packing under a 
brand name 
04.02 
31. Flavored milk, excluding that 
sold in retail packing under a 
brand name 
0402.9900 
32. Yogurt, excluding that sold 
917[***] under a brand name 
918[Respective heading] 
                                           
912 S. Nos. 17 to 20 and 24, 25 omitted by Finance Act, 2021. 
913 Serial number 21 omitted by Finance Act, 2024. 
914 Serial number(s) 22, 23 and 33 omitted by Finance (Supplementary) Act, 2022. 
915 New serial numbers 26 to 39 inserted by Finance Act, 2021. 
916 Expression added by Finance Act, 2023 
917 Under serial number(s) 32 and 34 to 37 words omitted by Finance Act, 2023 
918 Words substituted by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 170   
 
[33. ***] omitted  
34. Butter, excluding that sold  
932[***] under a brand name 
0405.1000 
35. Desi ghee, excluding that sold  
932[***] under a brand name 
0405.9000 
36. Cheese, excluding that sold  
932[***] under a brand name 
0406.1010 
37. Processed cheese not grated or 
powdered, excluding that sold  
932[***] under a brand name 
0406.3000 
[38. ***] omitted919  
39. Products of meat or meat offal 
excluding sold  920[***] under a 
brand name or trademark 
1602.3200, 1602.3900, 
1602.5000, 1604.1100, 
1604.1200, 1604.1300, 
1604.1400, 1604.1500, 
1604.1600, 1604.1900, 
1604.2010, 1604.2020 
and 1604.2090] 
921[40 Live Animals and live poultry Respective headings 
41 Meat of bovine animals, sheep, 
goat and uncooked poultry meat 
excluding those sold  935[***] 
under a brand name 
Respective headings 
42 Fish and crustaceans excluding 
those sold  935[***] under a brand 
name 
Respective headings 
43 Live plants including bulbs, roots 
and the like 
0601.1010, 0601.1090, 
0601.2000, 0602.1000, 
0602.2000, 0602.3000, 
0602.4000, 
0602.9010 and 
0602.9090 
44 Cereals other than rice, wheat, 
wheat and meslin flour 
Respective headings 
922[45 Edible vegetables including roots 
and tubers whether fresh, frozen 
or otherwise reserved (e.g. in 
cold storage) but excluding those 
bottled or canned. 
Respective heading]  
46 Edible fruits  Respective headings 
47 Sugar cane 1212.9300 
                                           
919 Serial number 38 omitted by Finance (Supplementary) Act, 2022. 
920 Under serial number(s) 39, 41 and 42 words omitted by Finance Act, 2023 
921 Serial number(s) 40 to 51 inserted by Finance (Supplementary) Act, 2022. 
922 Serial number 45 substituted by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 171   
 
48 Eggs including eggs for hatching  
 
0407.1100, 0407.1900 
0407.2100 and 0407.2900 
 
49 Compost (non -commercial 
fertilizer) 
Respective headings 
50 Locally manufactured laptops, 
computers, notebooks whether or 
not incorporating multimedia kit 
and personal computers 
8471.3010 and 8471.3020  
51. Newspaper Respective headings 
923[52. Raw hides and skins  Respective headings 
53. Prepared food or foodstuff 
supplied by Restaurants and 
caterers  
Respective heading 
54. All types of breads, nans and 
chapattis  
Respective headings.] 
924[55. Single cylinder agriculture diesel 
engines (compression ignition 
internal combustion piston 
engines) of 3 to 36 HP. 
Respective headings.] 
925[56. Milk excluding:  
(i) that sold under a brand 
name; or  
(ii) supplied by corporate 
dairy farms 
04.01 
57. 926Iron and steel scrap 
excluding:– 
 
(a) supplied by 
manufacturer cum -exporter of 
recycled copper, authorized 
under Export Facilitation 
Scheme, 2021 directly supplied 
to a registered steel melter 
subject to such apportionment, 
conditions and restrictions as 
may be specified by the Bo ard 
through a Sales Tax General 
Order; and  
 
(b) supplied directly by the 
importer (verifiable from the 
goods declaration form) to a 
7204.4100,  
7204.3000, 
7204.4990.] 
                                           
923 New serial number(s) 52 to 54 added by Finance Act, 2022. 
924 New serial number 55 added by Tax Laws (Second Amendment) Ordinance, 2022. 
925 Serial number(s) 56 and 57 added by Finance Act, 2024. 
926 Against S. No. 57, in column (2), substituted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 172   
 
registered steel melter subject to 
such apportionment, conditions 
and restrictions as may be 
specified by the Board through a 
Sales Tax General Order. 
 
Notes:-- 
 
1.  For the purpose of this Schedule, for entries against which classification of 
headings or sub-headings has been specified, exemption shall be admissible on the 
basis of description of goods as mentioned in column 2 of the Schedule Pakistan 
Customs Tariff classification of headings is provided for ease of reference and 
commodity classification purposes only. 
 
2.  For the purposes of determining classification of any goods,  the general 
rules for interpretation of the First Schedule to the Customs Act, 1969 (IV of 1969) 
and Explanatory Notes to the Harmonized Commodity Description and Coding 
System (relevant version) as amended from time to time shall be considered 
authentic source of interpretation. 
 
3.  For the purposes of exemption of sales tax under serial numbers 46, 47, 49, 
50, 51, 52, 53, 56, 57, 59, 60 and 62 of this Schedule, the definitions, restrictions, 
limitations, conditions and procedures and all the provisions of Chapter 99 of the 
First Schedule to the Customs Act, 1969 (IV of 1969), for the purposes of applying 
zero-rate of customs duty shall, mutatis mutandis, apply and shall be deemed and 
construed to be part of this Schedule. 
 
--------- 
 
927[TABLE-3 
 
The plant, machinery, equipment and apparatus, including capital goods, 
specified in column (2) of the Annexure below, falling under the HS Codes 
specified in column (3) of that Annexure, shall be exempt from the whole of Sales 
tax, subject to the following conditions, besides the conditions specified in column 
(4) of the Annexure, namely:-  
 
(i) The imported goods as are not listed in the locally manufactured 
items, notified through a Customs General Order issued by the Board 
from time to time or, as the case may be, certified as such by the 
Engineering Development Board. 
 
(ii) except for S. No. 9, 14, 928[14A and 15] of the Annexure, the Chief 
Executive, or the person next in hierarchy duly authorized by the 
                                           
927Inserted by Finance Act, 2014 
928 The figure and words inserted through Finance Act, 2017 
Sales Tax Act, 1990 
 
 173   
 
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 Computer ized 
System against a specific user ID and password obtained under 
section 155D of the Customs Act, 1969. In already computerized 
Collectorates or Customs stations where the Pakistan Customs 
Computerized System is not operational, the Project Director or any 
other person authorized by the Collector in this behalf shall enter the 
requisite information in the Pakistan Customs Computerized System 
on daily basis, whereas entry of the data obtained from the customs 
stations which have not yet been computerized s hall be made on 
weekly basis; and 
 
(iii) in case of partial shipments of machinery and equipment for setting 
up a plant, the importer shall, at the time of arrival of first partial 
shipment, furnish complete details of the machinery, equipment and 
components required for the complete plant, duly supported by the 
contract, layout plan and drawings: 
 
 Explanation.- For the purpose of Table -3, capital goods mean any 
plant, machinery, equipment, spares  and accessories, classified in 
Chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, 
required for- 
 
(a) the manufacture or production of any goods and includes 
refractory bricks and materials required for setting up a furnace, 
catalysts, machine tools, packaging machinery and equipment, 
refrigeration equipment, power generating sets and equipment, 
instruments for testing, research and development, quality 
control, pollution control and the like; or 
 
(b) used in mining, agriculture, fisheries, animal husbandry, 
floriculture, horticulture, livestock, dairy and poultry industry. 
    
929[ANNEXURE 
 
S. 
No 
Description PCT 
heading 
Conditions 
(1) (2) (3) (4) 
930[1. ***] omitted   
2 & 
2A 
***] omitted   
3.  ***] omitted   
                                           
929 Inserted by Finance Act, 2014. 
930 Serial number(s) 1 to 9 and 11 omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 174   
 
S. 
No 
Description PCT 
heading 
Conditions 
(1) (2) (3) (4) 
4.  ***] omitted   
5.  ***] omitted   
6.  ***] omitted   
7. ***] omitted   
8. ***] omitted   
9. ***] omitted   
93110
. 
***] omitted 
  
11. ***] omitted]   
12. Machinery, equipment and 
other project related items 
including capital goods, 
for setting up of hotels, 
power generation plants, 
water treatment plants and 
other infrastructure related 
projects located in an area 
of 30 km around the zero 
point in Gwadar.  
  
Respective 
Headings 
1. The Division dealing 
with the subject matter 
of Industries shall 
certify in the prescribed 
manner and format as 
per Annex -B that the 
imported goods are 
bonafide project 
requirement. The 
authorized officer of the 
Ministry shall furn ish 
all relevant information 
online to Pakistan 
Customs Computerized 
System against a 
specific user ID and 
password obtained 
under section 155D of 
the Customs Act, 1969. 
2.  The goods shall not 
be sold or otherwise 
disposed of without 
prior approval of the  
FBR and payment of 
customs duties and 
taxes leviable at the 
time of import. 
                                           
931 Serial number 10 omitted by Finance Act, 2015. 
Sales Tax Act, 1990 
 
 175   
 
S. 
No 
Description PCT 
heading 
Conditions 
(1) (2) (3) (4) 
932[1
3. 
***] omitted   
14. ***] omitted   
14A ***] omitted   
[15& 
15A 
***] omitted   
15B. ***] omitted   
933[16 ***]   
 [17. ***] omitted   
18. The following parts for 
assembling and 
manufacturing of personal 
computers and laptops: 
 If imported by 
manufacturers and 
assemblers of 
computers and laptops, 
registered with and 
certified by 
Engineering 
Development Board in 
accordance with quota 
determined by IOCO 
(i) Bare PCBs 8534.0000 
(ii) Power Amplifier 8542.3300 
(iii) Microprocessor/ 
Controllers 
85.42 
(iv) Equipment for SMT 
Manufacturing 
8486.2000 
(v) Laptop batteries  8506.5000 
(vi) Adopters 8504.4020 
(vii) Cooling fans 8414.5190 
(viii) Heat sink 7616.9920 
(ix) Hard Disk SSD 8471.7020 
(x) RAM/ROMS 8471.7060 
and 
8471.7090 
(xi) System on 
Chip/FPGA-IC 
85.42 
(xii) LCD / LED Screen 8528.7211 
(xiii) Motherboards 8534.0000 
(xiv) power supply  84.73 
(xv) Optical Drives 8471.7040 
(xvi) External Ports  8536.2090 
(xvii) Network cards  8517.6990 
(xviii) Graphic cards 8471.5000 
(xix) wireless cards 8517.6970 
(xx) micro phone 8518.3000 
                                           
932 Serial number(s) 13 to 15B and 17 omitted by Finance (Supplementary) Act, 2022. 
933 S.No. 16 and entries relating thereto omitted by Finance Act, 2015 
Sales Tax Act, 1990 
 
 176   
 
(xxi) Trackpad 8471.6020 
19. Plant and machinery, 
except the items listed 
under Chapter 87 of the 
Pakistan Customs Tariff, 
imported for setting up of 
a Special Economic Zone 
(SEZ) by zone developers 
and for installation in that 
zone by zone enterprises, 
on one time basis as 
prescribed in the SEZ Act, 
2012 and rules thereunder 
subject to such condition, 
limitations and restriction 
as a Federal Board of 
Revenue may impose from 
time to time.  
9917(2) Nil]  
934[20
. 
Plant and machinery for 
the assembly/ 
manufacturing of electric 
vehicles 
Respective 
heading 
The exemption shall be 
admissible on one time 
basis for setting up the 
new assembly and/or 
manufacturing facility 
of the vehicles and 
expansion in the 
existing units to the 
extent of electric 
vehicles specific plant 
and machinery, duly 
approved/ certified and 
determined by the 
Engineering 
Development Board 
(EDB).] 
935[21 ***] omitted   
936[22 1.Machinery, equipment 
and spares meant for 
initial installation, 
balancing, 
modernization, 
replacement or 
expansion of projects 
for power generation 
Respective 
Headings 
(i) This concession 
shall also be 
available to 
primary 
contractors of the 
project upon 
fulfilment of the 
following 
                                           
934 New serial number 20 inserted by Finance Act, 2020. 
935 Serial number 21omitted by Finance (Supplementary) Act, 2022. 
936 New serial number 22 inserted by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 177   
 
through hydel, oil, 
gas, coal, nuclear and 
renewable energy 
sources including 
under construction 
projects entered into 
an implementation 
agreement with the 
Government of 
Pakistan prior to 15 th 
day of January, 2022.  
2. Construction 
machinery, equipment and 
specialized vehicles, 
excluding passenger 
vehicles, imported on 
temporary basis as 
required for the 
construction of project. 
conditions, 
namely:-  
(a) the contractor shall 
submit a copy of the 
contract or agreement 
under which he intends 
to import the goods for 
the project; 
(b) the Chief Executive 
or head of the 
contracting company 
shall certify in the 
prescribed manner and  
format as per Annex-A 
that the imported goods 
are the projects bona 
fide requirement; and  
(c) the goods shall not 
be sold or otherwise 
disposed of without 
prior approval of the 
FBR on payment of 
sales tax leviable at the 
time of import;  
(ii) temporarily 
imported goods shall 
be cleared against a 
security in the form of 
a post-dated cheque for 
the differential amount 
between the statutory 
rate of sales tax and the 
amount payable along 
with an undertaking to 
pay the sales tax at the 
statutory rates in case 
such goods are not re -
exported on conclusion 
of the project.] 
 
 
937[“Annex-A 
Header Information 
NTN/FTN of Importer Regulatory Authority no. Name of Regulatory authority 
(1) (2) (3) 
                                           
937 Annex-A substituted by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 178   
 
Details of Input goods (to be filled by the chief executive 
of the importing company) 
Goods imported (Collectorate of import) 
HS Code 
Description 
Specs 
Custom Duty rate 
(applic-able) 
Sales Tax rate 
(applicable) 
WHT 
Quantity 
UOM 
Quantity imported 
Collectorate 
CRN/ 
Mach   No. 
Date of CRN/ 
Mach. 
No.  
(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) 
CERTIFICATE.  It is certified that the description and quantity 
mentioned above are commensurate with the project requirement and 
that the same are not manufactured locally.  It is further certified that 
the above items shall not be used for any other purpose.    
 
Signature of Chief Executive, or  
the person next in hierarchy duly 
authorized by the Chief Executive 
Name  ______________________ 
N.I.C. No. __________________________________ 
 
NOTE:- In case of clearance through Pakistan Customs 
Computerized System, the above information shall be furnished 
online against a specific user I.D. and password obtained under 
section 155D of the Customs Act, 1969. 
Explanation.–  
   
Chief Executive means.– 
1. owner of the firm, in case of sole proprietorship; 
or 
2. partner of firm having major share, in case of 
partnership firm; or 
3. Director, in case of private limited company; or  
4. Chief Executive Officer or the Managing 
Director in case of limited company or 
multinational organization; or   
5. Principal Officer in case of a foreign company.] 
 
938[Annex-B 
 
Header Information 
NTN/FTN of Importer Approval No.  
(1) (2) 
                                           
938 Inserted by the Finance Act, 2014 
Sales Tax Act, 1990 
 
 179   
 
Details of Input goods (to be filled by the 
authorized officer of the Regulatory 
Authority) 
Goods imported 
(Collectorate of import) 
HS Code 
Descripti
on 
Specs 
Custom 
Duty rate 
(applicabl
e) Sales Tax 
rate 
(applicabl
e) 
WHT 
Quantity 
 UOM 
Quantity 
imported 
Collector
ate 
CRN/Mac
h. No. 
Date of 
CRN/ 
Mach 
No.  
(3
) 
(4) (5
) 
(6) (7) (8
) 
(
9
) 
(10
) 
(11) (12) (13) (14) 
 
CERTIFICATE Before certifying the above-authorized officer of the Regulatory 
Authority shall ensure that the goods are genuine and bona fide requirement of the 
project and that the same are not manufactured locally. 
 
Signature ________________________ 
Designation ________________________ 
 
NOTE:- In case of clearance through Pakistan Customs Computerized System, the 
above information shall be furnished on line against a specific user I.D. and 
password obtained under section 155D of the Customs Act, 1969. 
 
939[Table-4 
 
The goods specified in column (2) of the Annexure below falling under the PCT 
codes specified in column (3) of the said Annexure, when supplied within the limits 
of the Border Sustenance Markets, established in cooperation with Iran and 
Afghanistan, shall be exempted from the whole of the sales tax, subject to the 
following conditions, namely:– 
 
(i) Such goods shall be supplied only within the limits of Border 
Sustenance Markets established in cooperation with Iran and 
Afghanistan; 
(ii) If the goods, on which exemption under this Table has been availed, 
are brought outside the limits of such markets, sales tax shall be 
charged on the value assessed on the goods declaration import or the 
fair market value, whichever is higher; 
(iii) Such items in case of import, shall be al lowed clearance by the 
Customs Authorities subject to furnishing of bank guarantee equal 
to the amount of sales tax involved and the same shall be released 
after presentation of consumption certificate issued by the 
Commissioner Inland Revenue having jurisdiction; 
                                           
939 Table-4 added by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 180   
 
(iv) The said exemption shall only be available to a person upon 
furnishing proof of having a functional business premises located 
within limits of the Border Sustenance Markets; and  
(v) Breach of any of the conditions specified herein shall attract relevant 
legal provisions of this Act, besides recovery of the amount of sales 
tax alongwith default surcharge and penalties involved.  
 
 
 
Annexure 
S.No Description Heading Nos of the 
First Schedule to 
the Customs Act, 
1969 (IV of 1969) 
(1) (2) (3) 
1 Seed (Potatoes) 0701.1000 
2 Tomatoes, fresh or chilled 0702.0000 
3 Onions and shallots 0703.1000 
4 Garlic 0703.2000 
5 Cauliflowers cabbage  0704.9000 
6 Carrots and turnips 0706.1000 
7 Cucumbers and gherkins fresh or chilled 0707.0000 
8 Peas (pisum sativum) 0708.1000 
9 Beans (vigna spp., phaseolus spp.) 0708.2000 
10 other leguminous vegetables 0708.9000 
11 Peas (Pisum sativum) 0713.1000 
12 Grams (Dry/Whole) 0713.2010 
13 Dried leguminous vegetables 0713.2090, 
0713.9090 
14 Beans of the species Vigna mungo (L.) 
Hepper or Vigna radiata (L.) Wilczek 
0713.3100 
15 Small red (Adzuki) beans (Phaseolus or 
Vigna angularis) 
0713.3200 
16 Kidney beans including white beans 0713.3300 
17 Bambara – vigna subteranea or 
vaahdzeia subterrea 
0713.3400 
18 Beans vigna unguiculata  0713.3500 
19 Other 0713.3990 
20 Lentils (Dry/Whole) 0713.4010 
Sales Tax Act, 1990 
 
 181   
 
21 Broad beans (Vicia faba var. major) and 
horse beans (Vicia faba var. equina, 
Vicia faba var. minor) 
0713.5000 
22 Pigeon peas (cajanus cajan)  0713.6000 
23 Vanilla (Neither crushed nor ground) 0905.1000 
24 Cinnamon  0906.1100 
25 Other (Cinnamon And Cinnamon Tree 
Flowers) 
0906.1900 
26 Neither crushed nor ground (Cloves) 0907.1000 
27 Crushed or ground (Cloves) 0907.2000 
28 Neither Crushed nor ground (Nutmeg) 0908.1100 
29 Crushed or ground (Nutmeg) 0908.1200 
30 Neither crushed nor ground (Maze) 0908.2100 
31 Crushed or ground (Maze) 0908.2200 
32 Large (Cardammoms) 0908.3110 
33 Small (Cardammoms) 0908.3120 
34 Crushed or ground (Cardammoms) 0908.3200 
35 Neither crushed nor ground (Coriander) 0909.2100 
36 Crushed or ground (Coriander) 0909.2200 
37 Neither crushed nor ground (Seeds of 
Cumins) 
0909.3100 
38 Crushed or ground (Seeds of Cumins) 0909.3200 
39 Neither crushed nor ground (Seeds of  
Anise, Badian, Caraway, Fennel etc) 
0909.6100 
40 Crushed or ground (Seeds of Anise, 
Badian, Caraway, Fennel etc) 
0909.6200 
41 Thyme; bay leaves 0910.9910 
42 Barley (Seeds) 1003.1000, 
1003.9000 
43 Sunflower seeds ,whether or not broken 1206.0000 
44 Locust beans  1212.9200 
45 Cereal straws and husks 1213.0000 
46 Knives and cutting blades for paper and 
paper board 
8208.9010 
47 Of a fat content, by weight, not 
exceeding 1 % (milk and cream) 
0401.1000 
48 Of a fat content, by weight, exceeding 1 
% but  not exceeding 6 % (milk and 
cream) 
0401.2000 
Sales Tax Act, 1990 
 
 182   
 
49 Of a fat content, by weight, exceeding 6 
% but not exceeding 10% (Milk and 
Cream) 
0401.4000 
50 Of a fat content, by weight, exceeding 
10 % (Milk and Cream) 
0401.5000 
51 Leeks and other alliaceous vegetables 0703.9000 
52 Cauliflowers and headed broccoli 0704.1000 
53 Brussels sprouts 0704.2000 
54 Cabbage lettuce (head lettuce) 0705.1100 
55 Lettuce 0705.1900 
56 Chicory  0705.2100, 
0705.2900 
57 Fruits of the genus Capsicum or of the 
genus Pimenta 
0709.6000 
58 Figs 0804.2000 
59 Fresh (grapes) 0806.1000 
60 Dried (Grapes) 0806.2000 
61 Melons 0807.1100, 
0807.1900 
62 Apples 0808.1000 
63 Green Tea 0902.1000 
64 Other Green Tea 0902.2000 
65 Crushed or ground (Ginger) 0910.1200 
66 Turmeric (curcuma) 0910.3000 
67 Other (spice)  0910.9990 
68 Lactose (Sugar ) 1702.1110 
69 Sugar Syrup 1702.1120 
70 Sugar Other  1702.1900 
71 Caramel 1702.9020 
72 Oil-cake and other solid residues, 
whether or not ground or in the form of 
pellets, resulting from the extraction of 
soya bean oil. 
2304.0000 
73 Other (animal feed) 2309.9000 
74 For Sewing (Thread) 5204.2010 
75 For embroidery (Thread) 5204.2020 
76 Spades and shovels 8201.1000 
Sales Tax Act, 1990 
 
 183   
 
77 Tools for masons, watchmakers, miners 
and hand tools nes 
8205.5900 
78 For kitchen appliances or for machines 
used by the food industry 
8208.3000 
79 Other kitchen appliances 8208.9090 
80 Yogurt 940[0403.2000] 
81 Other (Potatoes) 0701.9000 
82 Sweet corn 0710.4000 
83 Mixtures of vegetables  0710.9000 
84 Fresh (Dates) 0804.1010 
85 Dried (Dates) 0804.1020 
86 Apricots 0809.1000 
87 Sour cherries (Prunus cerasus) 0809.2100 
88 Other (Apricots)  0809.2900 
89 Peaches, including nectarines 0809.3000 
90 Plums and sloes 0809.4000 
91 Strawberries 0810.1000 
92 Kiwi Fruit 0810.5000 
93 Neither crushed nor ground (Ginger) 0910.1100 
94 Wheat and Meslin(Other) 1001.1900 
95 Wheat and Meslin (Other ) 1001.9900 
96 Of Wheat (Flour) 1101.0010 
97 Of Meslin 1101.0020 
98 Vermacelli 1902.1920 
99 Other (Packed Cake) 1905.9000 
100 Homogenised perparations  2007.1000 
101 Citrus Fruit  2007.9100 
102 Other (jams) 2007.9900 
103 Organic surface -active products and 
preparations for washing the skin, in the 
form of liquid or cream and put up for 
retail sale, whether or not containing 
soap 
3401.3000 
104 Preparations put up for retail sale 3402.2000 
105 Other (washing preparations) 3402.2000 
                                           
940 Expression substituted by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 184   
 
106 Tableware and kitchenware of porcelain 
or china 
6911.1090 
107 Household articles nes & toilet articles 
of porcelain or china 
6911.9000 
108 Glassware for table or kitchen purposes 
(excl. glass having a linear c 
7013.4900 
109 Glassware nes (other than that of 70.10 
or 70.18) 
7013.9900 
110 Spoons 8215.9910 
111 Tableware articles not in sets and not 
plated with precious metal 
8215.9990 
112 Bicycles and other cycles (including 
delivery tricycles), not motorised  
8712.0000 
113 Vacuum flasks 9617.0010 
114 Vacuum flasks/vacuum vessels 
complete w/cases; parts o/t glass inners 
(others) 
9617.0020.] 
Sales Tax Act, 1990 
 
 185   
 
The 
 SEVENTH SCHEDULE 
941[***] 
 
942[The 
EIGHTH SCHEDULE 
[See clause (aa) of sub-section (2) of section 3] 
 
Table-1 
 
S. 
No. 
Description Heading 
Nos. of the 
First 
Schedule to 
the Customs 
Act, 1969 
(IV of 1969) 
Rate of 
Sales 
Tax 
Condition 
(1) (2) (3) (4) (5) 
943[1. ***]    
944[2. ***]    
945[3. ***]    
946[4. ***] omitted    
[5. ***]    
6. ***] omitted    
7. ***] omitted    
8. ***] omitted    
9. ***] omitted    
10. ***] omitted    
11. ***] omitted    
12. ***] omitted    
947[13
. 
***] omitted    
 [14. ***] omitted    
                                           
941 The seventh schedule omitted by the Finance Act, 1997 
942 The eighth schedule inserted by the Finance Act, 2014 
943 Serial numbers 1 and 5 omitted by Finance Act, 2021. 
944 Serial number 2 omitted by Finance Act, 2020. 
945 S. No. 3 and entries relating thereto omitted by Finance Act, 2015 
946 Serial number(s) 4 and 6 to 12 omitted by Finance (Supplementary) Act, 2022. 
947 Serial number(s) 13 to 17, 20, 26 to 30 and 34 omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 186   
 
S. 
No. 
Description Heading 
Nos. of the 
First 
Schedule to 
the Customs 
Act, 1969 
(IV of 1969) 
Rate of 
Sales 
Tax 
Condition 
(1) (2) (3) (4) (5) 
15. ***] omitted    
16. ***] omitted    
17. ***] omitted    
948[18
. 
***]    
949[19
. 
***]    
20. ***] omitted    
950[21
. 
***]    
951[22
. 
***]    
23. Second hand and 
worn clothing or 
footwear 
 
6309.0000 5%  
952[25
. 
***]     
26. ***] omitted    
27 ***] omitted    
28 ***] omitted    
29 ***] omitted    
30 ***] omitted    
953[31
. 
[..........]] omitted    
954[32
. 
[***] omitted    
2[33. [..........]] omitted    
34. ***] omitted    
    
                                           
948 Serial number 18 and entries relating thereto is omitted through Finance Act, 2019. 
949 Serial number 19 omitted by Finance Act, 2021. 
950 Serial number 21 and entries relating thereto is omitted through Finance Act, 2019. 
951 Serial number 22 omitted by Finance Act, 2021. 
952 Serial number 25 omitted by Finance Act, 2022. 
953 Serial number 31 omitted through Finance Act, 2016. 
954 Serial number 32 and entries relating thereto is omitted through Finance Act, 2019. 
Sales Tax Act, 1990 
 
 187   
 
S. 
No. 
Description Heading 
Nos. of the 
First 
Schedule to 
the Customs 
Act, 1969 
(IV of 1969) 
Rate of 
Sales 
Tax 
Condition 
(1) (2) (3) (4) (5) 
955[3
5 to 
42]. 
[..........]] omitted    
43. Natural gas  Respective 
heading 
956[5%] If supplied to 
fertilizer plants for 
use as feed stock in 
manufacturing of 
fertilizer 
44. Phosphoric acid 2809.2010 5% If imported by 
fertilizer company 
for manufacturing of 
DAP 
95745
. 
***] omitted    
46. ***] omitted    
47. Locally produced 
coal 
27.01 Rs. 
958[700] 
per 
metric 
tonne or 
959[18%] 
ad 
valorem, 
whichev
er is 
higher 
Nil 
960[4
8 & 
49 
[..........]] omitted    
961[5
0. 
***]    
[51. ***]    
                                           
955 S.No(s) 33 & 35 to 42 omitted by Finance Act, 2018. 
956 For the figure “10” the figure “5” substituted through Finance Act, 2018. 
957 Serial number(s) 45 and 46 omitted by Finance (Supplementary) Act, 2022 
958 Expression substituted by Finance Act, 2022. 
959 Expression substituted by Finance (Supplementary) Act, 2023. 
960 S.No(s) 48 & 49 omitted by Finance Act, 2018. 
961 S.No(s) 50 to 51 omitted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 188   
 
S. 
No. 
Description Heading 
Nos. of the 
First 
Schedule to 
the Customs 
Act, 1969 
(IV of 1969) 
Rate of 
Sales 
Tax 
Condition 
(1) (2) (3) (4) (5) 
962[5
2. 
***]    
53. *** 963[Omitted]    
96454
. 
***] omitted    
55. ***] omitted    
56. Potassium Chlorate 
(KCLO3) 
Respective 
headings 
965[18%] 
alongwit
h rupees 
966[60] 
per 
kilogram 
Import and supply 
thereof. Provided 
that rate of rupees 
967[60] per kilogram 
shall not apply on 
imports made by and 
supplies made to 
organizations under 
the control of 
Ministry of Defence 
Production.  
57. Rock phosphate Respective 
headings 
10% If imported by 
fertilizer 
manufacturers for 
use in the 
manufacturing of 
fertilizers. 
968[5
8. 
***]    
[59. ***] omitted    
969[6
0. 
***] omitted    
61. ***] omitted    
62. ***] omitted    
63. ***] omitted    
64. ***] omitted    
                                           
962 Serial number 52 omitted by Finance Act, 2022. 
963 Serial number 53 omitted by Finance Act, 2025. 
964 Serial number(s) 54, 55, 59 and 61 to 64 omitted by Finance (Supplementary) Act, 2022 
965 Expression substituted by Finance (Supplementary) Act, 2023. 
966 The figure substituted by Finance Act, 2022. 
967 The figure substituted by Finance Act, 2022. 
968 S.No. 58 omitted by Finance Act, 2024. 
969 Serial number 60 “Fat filled Milk” omitted by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 189   
 
S. 
No. 
Description Heading 
Nos. of the 
First 
Schedule to 
the Customs 
Act, 1969 
(IV of 1969) 
Rate of 
Sales 
Tax 
Condition 
(1) (2) (3) (4) (5) 
970[6
5. 
***]    
97166
. 
***]    
 
972[6
6A 
***] omitted    
66B ***] omitted    
67. ***]    
68. ***] omitted    
69. ***] omitted    
973[7
0. 
Following locally 
manufactured 
electric vehicles 
Respective 
Heading 
1%  
Local supplies only] 
(i) Road 
Tractors for semi -
trailers (Electric 
Prime Movers) 
 
(ii) Electric 
Buses 
(iii) Three 
Wheeler Electric 
Rickshaw 
(iv) Three 
Wheeler Electric 
Loader 
(v) Electric 
Trucks  
(vi) Electric 
Motorcycle 
974[7
1. 
Following locally 
manufactured or 
assembled electric 
Respective 
heading 
1% If supplied locally 
                                           
970 Serial numbers 65 and 67 omitted by Finance Act, 2021. 
971 S.No. 58 omitted by Finance Act, 2024. 
972 Serial number(s) 66A, 66B and 68, 69 omitted by Finance (Supplementary) Act, 2022 
973 Serial number 70 substituted by Finance (Supplementary) Act, 2022 
974 New serial numbers 71 to 74 inserted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 190   
 
vehicles (4 wheelers) 
till 30th June, 2026: 
(i) Small cars/ 
SUVs with 50 Kwh 
battery or below; and  
(ii) Light 
commercial vehicles 
(LCVs) with 150 kwh 
battery or below 
72. *** 975[Omitted]    
976[7
3. 
Locally 
manufactured Hybrid 
electric vehicle 977[till 
30th June, 2026]: 
(a) Upto 1800 cc 
(b) From 1801 cc to 
2500 cc 
 
 
 
 
 
87.03 
87.03 
 
 
 
 
 
8.5%. 
12.75% 
 
74. Goods supplied from 
tax-exempt areas of 
erstwhile 
FATA/PATA to the 
taxable areas 
Respective 
headings 
16%.]  
978[7
5 
***]    
979[7
6 
***] omitted    
980[7
7 
Imported personal 
computers and 
Laptop computers, 
notebooks whether or 
not incorporating 
multimedia kit 
8471.3020 
and 
8471.3010  
10%  
981[7
8. 
Supply of locally 
manufactured articles 
of jewellery, or parts 
thereof, of precious 
metal or of metal clad 
with precious metal. 
71.13 3%  No input tax shall be 
adjusted 
79. Electric vehicle in 
CBU condition of 50 
kwh battery or below 
8703.8090 12.5%  
                                           
975 Serial number 72 omitted by Finance Act, 2025. 
976 Serial number 73 substituted by Finance (Supplementary) Act, 2022 
977 Expression inserted by Finance Act, 2024. 
978 Serial number 75 omitted by Finance Act, 2022. 
979 Serial number 76 omitted by Finance (Supplementary) Act, 2022 
980 Serial number 77 substituted by Finance Act, 2024. 
981 New serial number(s) 78 to 82 added by Finance Act, 2022 
Sales Tax Act, 1990 
 
 191   
 
80. EV transport buses of 
25 seats  or more in 
CBU condition 
Respective 
heading 
1%  
982[8
1. 
Substances registered 
as drugs under the 
Drugs Act, 1976 
(XXXI of 1976) 
983[***] 
Respective 
heading 
1%  Subject to the 
conditions that:  
(i) Tax charged and 
deposited by the 
manufacturer or 
importer, as the case 
may be, shall be 
final discharge of tax 
in the supply chain  
(ii) No input tax 
shall be adjusted in 
the supply chain. 
82. Raw materials for the 
basic manufacture of 
pharmaceutical active 
ingredients and for 
manufacture of 
pharmaceutical 
products, provided 
that in case of import, 
only such raw 
materials shall be 
entitled to reduced 
rate as specified in 
column (4) which are 
liable to customs duty 
not exceeding eleven 
per cent ad valorem , 
either under the First 
Schedule or Fifth 
Schedule to the 
Customs Act, 1969 
(IV of 1969) or under 
a notification issued 
under section 19 
thereof. 
Respective 
heading 
1% Subject to the 
conditions that: (i) 
DRAP shall certify 
item-wise 
requirement of 
manufacturers of 
drugs and APIs and 
in case of import 
shall furnish all 
relevant information 
to Pakistan Customs 
Computerized 
System; and (ii) No 
input tax shall be 
adjusted in the 
supply chain.] 
984[8
3 
DAP Respective 
headings 
5% Subject to the 
condition that no 
refund of excessive 
input tax, if any, 
shall be admissible.] 
                                           
982 Serial numbers 81 & 82 substituted by Finance Act, 2023 
983 Expression omitted by Finance Act, 2024. 
984 New serial number added by Finance Act, 2023 
Sales Tax Act, 1990 
 
 192   
 
98584
. 
(i) Colors in sets 3213.1000   
(ii) Writing, drawing 
and marking inks 
3215.9010 
and 
3215.9090 
10% 
(iii) Erasers 4016.9210 
and 
4016.9290 
(iv) Pencil sharpeners 8214.1000 
(v) other drawing, 
marking out or 
mathematical 
calculating 
instruments 
(geometry box) 
9017.2000 
(vi) Pens, ball pens, 
markers and porous 
tipped pens 
96.08 
(vii) Pencils 
including color 
pencils 
96.09 
85. Oil cake and other 
solid residue 
2306.1000 10%  
86. Tractors 8701.9220 
and 
8701.9320 
10%  
87. Local supply of 
vermicillies, sheer 
mal, bun and rusk 
excluding those sold 
in bakeries, and sweet 
shops falling in the 
category of Tier -1 
retailers. 
Respective 
headings 
10%  
88. Local supply of 
poultry feed, cattle 
feed, sunflower seed 
meal, rape seed meal 
and canola seed meal 
2306.3000, 
2306.4900 
and 
respective 
headings 
10%  
986 
[89. 
(i) imports of plant, 
machinery, and 
equipment for 
installation in the 
tribal areas, and 
import of 
Respective 
heading 
10% 
(for 2025-
26) 
 
12% 
 
                                           
985 Serial number(s) 84 to 88 inserted by Finance Act, 2024. 
986 Serial number 89 and 90 entries relating thereto inserted by Finance Act, 2025 
Sales Tax Act, 1990 
 
 193   
 
industrial inputs 
by industries 
located in the 
tribal areas, as 
defined in the 
Constitution of 
the Islamic 
Republic of 
Pakistan; and  
(ii) and supplies 
within the tribal 
areas 
 
Provided that, in 
case of imports, 
the same shall be 
allowed 
clearance by the 
Customs 
authorities in 
accordance with 
quota determined 
by IOCO. 
 
Provided further 
that if plant, 
machinery and 
equipment, on 
which reduced 
rate is availed 
under this serial 
number, is 
transferred or 
supplied outside 
the tribal areas, 
the differential 
amount of tax 
shall be paid at 
applicable rate.  
(for 2026-
27) 
 
14% 
(for 2027-
28) 
 
 
16% 
(for 2028-
29) 
 
90. Photovoltaic cells 
whether or not 
assembled in modules 
or made up into 
panels 
8541.4200 
and 
8541.4300 
10%.”; 
and  
 
 
Sales Tax Act, 1990 
 
 194   
 
987[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 
executive of the importing company) 
Goods imported (Collectorate 
of import) 
HS Code 
Descripti
on 
Specs 
Custom 
Duty rate 
(applic-
able) 
Sales Tax 
rate 
(applicabl
e) 
WHT 
Quantity 
UOM 
Quantity 
imported 
Collector
ate 
CRN/ 
Mach   
No. 
Date of 
CRN/ 
Mach. 
No.  
(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) 
 
CERTIFICATE.  It is certified that the description and quantity mentioned above 
are commensurate with the project requirement and that the same are not 
manufactured locally.  It is further certified that the above items shall not be used 
for any other purpose. 
 
 
Signature of Chief Executive, or  
the person next in hierarchy duly 
authorized by the Chief Executive 
Name ______________________ 
N.I.C. No. __________________________________ 
 
NOTE:-- In case of clearance through Pakistan Customs Computerized System, 
the above information shall be furnished online against a specific user I.D. and 
password obtained under section 155D of the Customs Act, 1969. 
 
 Explanation.— 
 
Chief Executive means.— 
 
1. owner of the firm, in case of sole proprietorship; or 
2. partner of firm having major share, in case of partnership firm; or 
3. Chief Executive Officer or the Managing Director in case of limited 
company or multinational organization; or   
4. Principal Officer in case of a foreign company. 
 
-------------- 
Annex-B 
                                           
987 Table -2 omitted by Finance (Supplementary) Act, 2022. 
Sales Tax Act, 1990 
 
 195   
 
 
Header Information 
NTN/FTN of Importer Approval No.  
(1) (2) 
Details of Input goods (to be filled by the 
authorized officer of the Regulatory Authority) 
Goods imported 
(Collectorate of import) 
HS Code 
Descripti
on 
Specs 
Custom 
Duty rate 
(applicabl
e) Sales Tax 
rate 
(applicabl
e) 
WHT 
Quantity 
 UOM 
Quantity 
imported 
Collector
ate 
CRN/Mac
h. No. 
Date of 
CRN/ 
Mach 
No.  
(3
) (4) (5) (6) (7) (8
) 
(9
) (10) (11) (1
2) 
(1
3) (14) 
 
CERTIFICATE.  Before certifying the above-authorized officer of the Regulatory 
Authority shall ensure that the goods are genuine and bona fide requirement of the 
project and that the same are not manufactured locally. 
Signature ________________________ 
Designation  ________________________ 
 
NOTE:-- In case of clearance through Pakistan Customs Computerized System, 
the above information shall be furnished online against a specific user I.D. and 
password obtained under section 155D of the Customs Act, 1969. 
 
------------- 
Sales Tax Act, 1990 
 
 196   
 
988[The 
NINTH SCHEDULE 
[See sub-section (3B) of section 3] 
 
989[Table-I 
Sales Tax on supply (payable at the time of supply by CMOs): 
S. No. Description / Specification of 
Goods 
Sales tax on supply 
(payable at the time of 
supply by CMOs) 
(1) (2) (3) 
1. Subscriber Identification  
Module (SIM) Cards 
Rs. 250 
 
 
 990[Provided that the provisions of Table -I shall not be applicable from 1 st 
July, 2020 onwards. 
 
 Explanation.– For removal of doubt, it is clarified that the above 
amendment in law shall not prejudicially affect, the Board’s stance or 
position in pending cases on the issue of chargeability of sales tax on SIM 
cards before any court of law.] 
      
  
                                           
988 The Ninth Schedule added by the Finance Act, 2015   
989 Table-I, Table-II and conditions substituted by Finance Act, 2020. 
990 Proviso and Explanation to Table-1 inserted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 197   
 
991[Table-II 
Cellular mobile phones in CKD/CBU form: 
S. 
No. 
Description / 
Specification of 
Goods 
Sales tax on 
CBUs at  the 
time of import 
or registration  
(IMEI number 
by CMOs) 
Sales tax on 
import in 
CKD/SKD 
condition 
Sales tax on supply 
of locally 
manufactured 
mobile phones in 
CBU condition in 
addition to tax 
under column (4) 
(1) (2) (3) (4) (5) 
1. Cellular mobile 
phones or satellite 
phones to be charged 
on the basis of 
import value per set, 
or equivalent value 
in rupees in case of 
supply by the 
manufacturer, at the 
rate as indicated 
against each 
category:-- 
   
 A. Not exceeding 
US$ 500 
18% ad 
valorem 
18% ad 
valorem 
18% ad valorem 
 B. exceeding US$ 
500 
25% ad 
valorem 
18% ad 
valorem 
18% ad valorem 
 
 
LIABILITY, PROCEDURE AND CONDITIONS 
 
[(i) The liability to pay the tax on the goods specified in this Schedule shall be– 
 (a) in case of the goods specified in Table -I, of the Cellular Mobile 
Operator (CMO); 
 (b) in case of goods specified in columns (3) and (4) of Table -II, of the 
importer; and  
 (c) in case of goods specified in column (5) of Table -II, of the local 
manufacturers of the goods. 
(ii) The time of payment of tax due under this Schedule shall be the same as 
specified in section 6; 
 
992[(iii), (iv) and (v).] 
 
 
                                           
991 Table-II substituted by Finance Act, 2024. 
992 Clauses (iii), (iv) and (v) under Table-II omitted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 198   
 
 
993[The 
TENTH SCHEDULE 
[See sub-section (1B) of section 3] 
 
994[(1)]The tax on bricks, falling in PCT heading 995[6901.0000], shall be 
paid on fixed basis, 996[ ] at the rates specified in Table below:– 
 
TABLE 
 
S. 
No. 
Region or area Tax 
payable 
per month 
(1) (2) (3) 
1. Lahore, Rawalpindi and Islamabad districts Rs. 12,500 
2. Attock, Chakwal, Jehlum, Mandi 
Bahauddin, Sargodha, Gujrat, Sialkot, 
Narowal, Gujranwala, Hafizabad, 
Sheikhupura, Kasur, Nankana Sahib, 
Chiniot, Faisalabad, Jhang, Toba Tek Singh, 
Okara and Sahiwal districts 
Rs. 10,000 
3. Khushab, Mianwali, Bhakar, Layyah, 
Muzaffarghar, Dera Ghazi Khan, Rajanpu r, 
Multan, Lodhran, Khanewal, Vehari, 
Bahawalpur, Pakpattan, Bahawalnagar, 
Rahim Yar Khan districts; and Sindh, 
Khyber-Pakhtunkhwa and Baluchistan 
provinces 
Rs. 7,500 
 
                                           
993 The new Tenth Schedule, the Eleventh Schedule and the Twelfth Schedule added through Finance Act, 2019. 
994 Existing paragraph renumbered as paragraph (1) by Finance Act, 2020. 
995 PCT heading “6901.1000” substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 
996 Expression “on monthly return,” Omitted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 
Sales Tax Act, 1990 
 
 199   
 
997[(2) Tax on cement or concrete blocks falling in PCT heading 6810.1100, shall 
be charged on fixed basis as per the following Table, namely:- 
 
TABLE 
S. No. Item Tax 
(1) (2) (3) 
1. Paver Rs. 2 per sq.ft 
2. Hollow block 
(volume less than 1 cubic feet) 
Rs. 3 per piece 
3. Solid block 
(volume less than 1 cubic feet) 
Rs. 3 per piece 
4. Kerb Stone 
(volume less than 1 cubic feet) 
Rs. 5 per piece 
5. Kerb stone 
(volume greater than 1 cubic 
feet) 
Rs. 10 per piece]  
 
Note: No input tax adjustment shall be allowed against the tax paid under this 
Schedule.] 
 
                                           
997 New paragraph (2) and its Table along with Note inserted by Finance Act, 2020. 
Sales Tax Act, 1990 
 
 200   
 
 
998[The 
ELEVENTH SCHEDULE 
[See sub-section (7) 999and (7A) of section 3] 
 
TABLE  
The rates for withholding or deduction by the withholding agents 1000[are 
specified as below provided that withholding of tax under this Schedule 
shall not be applicable to the goods and supplies specified vide clauses 
1001[***] after the Table]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 
S. 
No.  
Withholding agent Supplier 
category 
Rate or extent of 
deduction 
(1) (2) (3) (4) 
1. (a) Federal and provincial 
government departments; 
autonomous bodies; and 
public sector organizations 
(b) Companies as defined 
in the Income Tax 
Ordinance, 2001 (XLIX of 
2001) 
1002[Active 
Taxpayers] 
1/5th of Sales Tax as shown 
on invoice 
2. (a) Federal and provincial 
government departments; 
autonomous bodies; and 
public sector organizations 
 
(b) Companies as defined 
in the Income Tax 
Ordinance, 2001 (XLIX of 
2001) 
2[Active 
Taxpayer] 
registered as a 
wholesaler, 
dealer or 
distributor 
1/10th of Sales Tax as 
shown on invoice 
3. Federal and provincial 
government departments; 
autonomous bodies; and 
public sector organizations 
2[persons 
other than 
Active 
Taxpayers] 
Whole of the tax involved 
or as  applicable to 
supplies on the basis of 
gross value of supplies 
4. Companies as defined in 
the Income Tax 
Ordinance, 2001 (XLIX of 
2001) 1003[excluding 
companies exporting 
surgical instruments] 
2[persons 
other than 
Active 
Taxpayers] 
5% of gross value of 
supplies 
                                           
998 Eleventh Schedule inserted by Finance Act, 2019. 
999 After the expression “(7)”, the expression “and (7A)” inserted by Finance Act, 2025. 
1000 The expression substituted by Finance Act, 2020. 
1001 Expression omitted by Finance Act, 2022. 
1002 Words substituted by Finance Act, 2020. 
1003 Words added by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 201   
 
S. 
No.  
Withholding agent Supplier 
category 
Rate or extent of 
deduction 
(1) (2) (3) (4) 
5. Registered persons as 
recipient of advertisement 
services 
Person 
providing 
advertisement 
services 
Whole of sales tax 
applicable 
6. Registered persons 
purchasing cane molasses. 
2[persons 
other than 
Active 
Taxpayers] 
Whole of sales tax 
applicable. 
1004[7
. 
Registered persons 
manufacturing lead 
batteries  
Persons 
supplying any 
kind of lead 
under chapter 
78 (PCT 
Headings: 
7801.1000, 
7801.9100, 
7801.9900, 
7802.0000, 
78.03, 
7804.1100, 
7804.1900, 
7804.2000, 
78.05, 
7806.0010, 
7806.0020, 
7806.0090) or 
scrap batteries 
under chapter 
85 (PCT 
Headings: 
1005[Respective 
headings] 
1006[80]% of the sales tax 
applicable”. 
1007 
[8. 
Payment intermediaries 
and couriers in respect of 
digitally ordered goods 
from within Pakistan. 
Persons 
supplying 
digitally 
ordered goods 
from within 
Pakistan 
through online 
market place, 
2% of gross value of 
supplies.”. 
                                           
1004 New serial numbers 7 and 8 inserted by Finance Act, 2021. 
1005 Words added by Finance Act, 2022. 
1006 Expression substituted by Finance Act, 2024. 
1007 Serial number (8), and entries relating thereto substituted by Finance Act, 2025. 
Sales Tax Act, 1990 
 
 202   
 
website, 
software 
applications  
10089. Registered persons 
manufacturing cement 
Persons 
supplying any 
kind of 
gypsum under 
chapter 25 
(PCT headings 
2520.1010, 
2520.1020, 
2521.0000) or 
limestone flux 
under chapter 
25 (PCT 
headings 
2520.1010, 
2520.1020, 
2521.0000) 
80% of the sales tax 
applicable 
10. Registered persons Persons 
supplying any 
kind of coal 
under chapter 
27 (PCT 
headings 
2701.1100, 
2701.1200, 
2701.1900, 
2701.2000, 
2704.0010, 
2704.0020, 
2704.0090) 
80% of the sales tax  
applicable 
11. Registered persons Persons 
supplying any 
kind of waste 
of paper and 
paper board 
(Respective 
headings) 
80% of the sales tax 
applicable 
                                           
1008 New serial number(s) 9 to 13 inserted by Finance Act, 2024. 
Sales Tax Act, 1990 
 
 203   
 
12. Registered persons Persons 
supplying any 
kind of plastic 
waste 
(Respective 
headings) 
80% of the sale s tax 
applicable 
13. Registered persons Persons 
supplying 
crush stone and 
silica 
80% of the sales tax 
applicable 
    
 
 
 
 
 
 (i) Electrical energy; 
 
 (ii) Natural Gas; 
 
 (iii) Petroleum Products as supplied by petroleum production and 
exploration companies, oil refineries, oil marketing companies and 
dealers of motor spirit and high speed diesel; 
 
 (iv) Vegetable ghee and cooking oil; 
 
 (v) Telecommunication services; 
 
 (vi) Goods specified in the Third Schedule to the Sales Tax Act, 1990; 
 
 (vii) Supplies made by importers who paid value addition tax on such 
goods at the time of import;  
 
Sales Tax Act, 1990 
 
 204   
 
 (viii) 1009[Supplies made by an Active Taxpayer as defined in the Sales Tax 
Act, 1990 to another registered person with the exception of supplies 
referred to in S. Nos. 5, 7, 9, 10, 11, 12 and 13 of the Table]; and 
 
 1010[(ix) Supply of sand, stone, gravel/crush and clay to low cost housing 
schemes sponsored or approved by Naya Pakistan Housing and 
Development Authority.] 
                                           
1009 Clause (viii) substituted by Finance Act, 2024. 
1010 New clause (ix) inserted by Finance Act, 2020. 
Sales Tax Act, 1990 
 
 205   
 
1011[The 
TWELFTH SCHEDULE 
[See sub-section (2) of section 7A] 
 
TABLE  
 
S. No. Goods or class of goods PCT 
Heading 
Rate 
(1) (2) (3) (4) 
1. All imported goods 
subject to exclusions as 
in conditions and 
procedure given after the 
Table 
Respective 
Heading 
3% ad 
valorem 
 
 
 
Procedure and conditions:– 
 
 (1) The sales tax on account of minimum value addition as payable under 
this Schedule (hereinafter referred to as value addition tax), shall be 
levied and collected at import stage from the importers on all taxable 
goods as are chargeable to tax under section 3 of the Act or any 
notification issued thereunder at the rate specified in the Table in 
addition to the tax chargeable under section 3 of the Act or a 
notification issued thereunder: 
 
 (2) The value addition tax under this Schedule shall not be charged on,— 
 
 1012[(i) Raw materials and intermediary goods imported by a 
manufacturer for in -house consumption  1013[excluding 
compressor scrap (PCT heading 7204.4940), motor scrap (PCT 
heading 7204.49 90) and copper cable cutting scrap (PCT 
heading 7404.0090)] 
  
 (ii) The petroleum products falling in Chapter 27 of Pakistan 
Customs Tariff as imported by a licensed Oil Marketing 
Company for sale in the country; 
 
 (iii) Registered service providers importing goods for their in-house 
business use for furtherance of their taxable activity and not 
intended for further supply;   
                                           
1011 Twelfth Schedule inserted by Finance Act, 2019. 
1012 Clause (i) substituted by Finance Act, 2020. 
1013 Expression added by Finance Act, 2022. 
Sales Tax Act, 1990 
 
 206   
 
 
 (iv) Cellular mobile phones or satellite phones  1014[(PCT headings 
8517.1419, 8517.1430 and 8517.1390)]; 
 
 (v) LNG / RLNG;  
 
 (vi) Second hand and worn clothing or footwear (PCT Heading 
6309.000); 
 
     (vii) Gold, in un-worked condition; 1015[***] 
 (viii)Silver, in un-worked condition; 
           (ix)    1016[The goods as specified in the Third Schedule on which  
tax is paid on retail price basis.1017[;and 
 
 1018[(x) plant, machinery and equipment falling in Chapters 84 and 85 
of the First Schedule to the Customs Act, 1969 (IV of 1969), as 
are imported by a manufacturer for in-house installation or use. 
1019[(xi) Electric vehicles (4 wheelers) CK D kits for small 
cars/SUVs, with 50 kwh battery or below and LCVs with 150 
kwh battery of below till 30th June, 2026;  
(xii) Electric vehicles (4 wheelers) small cars/SUVs, with 50 kwh 
battery or below and LCVs with 150 kwh battery of below in 
CBU condition till 30th June, 2026”;  
(xiii) Electric vehicles (2 -3 wheelers and heavy commercial 
vehicles) in CBU condition till 30th June, 2025; and  
(xiv) motor cars of cylinder capacity upto 850cc] 
 
 
(3) The value addition tax paid at import stage shall form part 
of input tax, and the importer shall deduct the same from 
the output tax due for the tax period, subject to limitations 
and restrictions under the Act, for determining his net 
liability. The excess of input tax over output tax shall be 
carried forwarded to the next tax period as provided in 
section 10 of the Act. 
 
1020[“(4) The refund of excess input tax over output tax, which is 
attributable to tax paid under this Schedule, shall not be 
                                           
1014 Expression inserted by Finance Act, 2024. 
1015 The word “and” omitted through Tax Laws (Amendment) Act, 2020, dated 30 -3-2020  
1016 Clause (ix) inserted vide SRO 1321(I)/2019 dated 08th November, 2019. 
1017  The word “and” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020. 
1018 Clause  “(x)” inserted by Tax Laws (Amendment) Act, 2020, dated 30-3-2020 
1019 New clauses inserted by Finance Act, 2021. 
1020 Clause (4) substituted through Tax Laws (Amendment) Act, 2020, dated 30-3-2020 the substituted clause read as under: 
 “(4)  In no case, the refund of excess input tax over output tax, which is attributable  
  to tax paid at import stage, shall be refunded to a registered person.”  
Sales Tax Act, 1990 
 
 207   
 
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.] 
 
1021[THIRTEENTH SCHEDULE” 
(Minimum Production) 
[See sub-section (9AA) of section 3] 
Minimum production of steel products.— 
 
The minimum production for steel products shall be determined as per 
criterion specified against each in the Table below: 
 
Table 
 
S. 
No. 
Product Production criteria 
(1) (2) (3) 
1. Steel billets and ingots One metric ton per 700 kwh of 
electricity consumed 
2. Steel bars and other re -
rolled long profiles of steel 
One metric ton per 110 kwh of 
electricity consumed 
3. Ship plates and other re -
rollable scrap 
85% of the weight of the vessel 
imported for breaking”; and 
 
Procedure and conditions:– 
 
(i) both actual and minimum production and the local supplies shall 
be declared  in the monthly return. In case, the minimum 
production exceeds actual supplies for the month, the liability to 
pay tax shall be discharged on the basis of minimum production: 
Provided that in case, in a subsequent month, the actual 
supplies exceed the min imum production, the registered person 
shall be entitled to get adjustment of excess tax on account of 
excess of minimum production over actual supplies: 
Provided further that in a full year, as per financial year 
of the company or registered person, or period starting from July 
                                           
1021 New Thirteenth Schedule inserted by Finance Act, 2021. 
Sales Tax Act, 1990 
 
 208   
 
to June of next year, in other cases, the tax actually paid shall not 
be less than the liability determined on the basis of minimu m 
production for that year and in case of excess payment no refund 
shall be admissible: 
Provided also that in case of ship -breaking, the liability 
against minimum production, or actual supplies, whichever is 
higher, shall be deposited on monthly basis on proportionate basis 
depending upon the time required to break the vessel; 
 
(ii) the payment of tax on ship plates in aforesaid manner does not 
absolve ship breakers of any tax liability in respect of items other 
than ship plates obtained by ship-breaking; 
 
(iii) the melters and re -rollers employing self -generated power shall 
install a tamperproof meter for measuring their consumption. Such 
meter shall be duly locked in room with keys in the custody of a 
nominee of the Commissioner Inland Revenue having 
jurisdiction. The officers Inland Revenue having jurisdiction shall 
have full access to such meter; 
 
 
(iv) the minimum production of industrial units employing both 
distributed power and self -generated power shall be determined 
on the basis of total electricity consumption.] 
 
********* 
PCPPI—4310(19) FBR—19-09-2019—2000.