Reformed General Sales Tax

ISLAMABAD : The exemptions, to be retained under the reformed general sales tax (RGST), include newspapers, wheat, pulses, vegetables, peas, salt and water, excluding those sold under brand names or trademarks.

Sales tax exemption would be applicable on the goods imported under the President s Salary, Allowances and Privileges Act, 1975; goods imported under the Prime Minister s Salary, Allowances and Privileges Order, 1975; goods imported under the Governor s Salary, Allowances and Privileges, Order, 1975 and goods imported under the Acting Governor s (Allowance and Privileges) Order, 1978. Sources told Business Recorder here on Saturday that the Federal Board of Revenue (FBR) has proposed a list of sales tax exemptions, to be retained under the RGST, to the Ministry of Finance. According to the exemption list, to be retained under the RSGT, sales tax exemption would be available on table salt including iodised salt excluding salt sold in retail packing bearing brand names and trademarks. The sales tax exemption would also be applicable on books, ambulances, fire-fighting trucks, diapers for adults (patients) and dextrose and saline infusion-giving sets along with empty non-toxic bags for infusion solution, and dextrose and saline infusion giving sets. Sales tax exemption would continue on the Holy Quran in whatever form or on whatever media. Under the exemption list of the RGST, the exemption would be applicable on artificial parts of the body, intra-ocular lenses and glucose testing equipment and contraceptives and accessories thereof. The sales tax exemption would also be applicable on personal wearing apparel and bona fide baggage imported by overseas Pakistanis and tourists exempt from customs duty under the Customs Act 1969.The proposed list further shows that sales tax exemption may not be applicable on vehicles in CKD condition, imported by recognised local manufacturer for supply to diplomats, diplomatic missions, privileged persons (as per model rules) and organisations, etc, eligible to import duty-free vehicles, subject to the procedure laid down by the Board. The sales tax exemption has been retained on the goods imported by various agencies of the United Nations under the United Nations (Privileges and Immunities) Act, 1948, as certified by the Ministry of Foreign Affairs; goods imported by Diplomats/Embassies/Consulates under the Diplomatic and Consular Privileges Act,1972 as certified by the Ministry of Foreign Affairs and RGST exemption would be available on the goods imported by privileged personnel/organisations under grant-in-aid agreements signed by the Economic Affairs Division (EAD). The sales tax exemption would be applicable on household articles and personal effects including vehicles and goods for donation to projects established in Pakistan, imported by the rulers and dignitaries of UAE and Qatar. The RGST would not be applicable on articles, value of which does not exceed Rs 10,000 per parcel, if imported through post or courier service as unsolicited gift parcel. Sales tax exemption would continue on samples of no commercial value imported by manufacturers-cum-exporters. The sales tax exemption would continue on relief goods donated by foreign government/agencies for free distribution among victims of natural disaster or other catastrophe, as are certified by the authorised officer of federal/provincial government. The exemption would be available on goods imported by Abdul Sattar Edhi Foundation and Bilques Edhi Foundation; gifts or donations received by a charitable non-profit making hospital or institution, solely for the purpose of advancing the declared objectives of such hospital or institution; equipment, apparatus, reagents, disposables and spares, imported by charitable non-profit making institutions operating hospitals of fifty beds or more and hospitals run by the Federal Government or a Provincial Government; goods imported by or donated to non profit making educational and research institutions and goods supplied free of cost as replacement of identical goods previously imported including goods imported within warranty period not exceeding one year or such extended period as allowed by the Collector of Customs. Sales tax exemption would be applicable on the goods (PCT heading 9919) heading, imported temporarily for a period not exceeding 6 months into Pakistan with a view to subsequent exportation and goods (PCT heading 9920) heading, imported temporarily into Pakistan with a view to subsequent exportation. The RGST exemption would also be applicable on the container for transportation of cargo if imported by the shipping companies for use on board the ships and for transportation of cargo to and from inland container depots or container freight stations. Sales tax exemption would also be applicable on the ship spares, stores and equipment imported for use in ships registered in Pakistan under the Merchant Shipping Act, subject to the condition that the importer satisfies the respective Collector of Customs that the items imported would be used by such vessels. The sales tax exemption would also be applicable on some other PCT headings of Chapter 99 of the Pakistan Customs Tariff, sources added.

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