Abolishing pro-rich

tax regime
for right to life
By

Huzaima Bukhari
&
Dr. Ikramul Haq
 Contents
1. Abstract----Crux of the study 1
2. Pro-rich exemptions and rising poverty 2
3. History of exemptions, waivers and concessions 3
4. Analysis of pro-rich exemptions & concessions from equity principle view. 6
5. Abuse of delegated powers by executive to grant exemptions and concessions. 12
6. Constitutional provisions vis-à-vis delegation of legislative power to the executive by the 15
parliament to grant exemptions and concessions.
7. Abdication of taxation power by the Parliament in favour of the executive 18
8. Estimates of SROs’ impact on institutional quality and economic growth: Direct (tax 20
forgone) and indirect (discrimination among taxpayers, eroding institutional quality,
creating perverse incentives, vicious circles)
9. Exemptions/concessions making the rich richer and the poor, poorer. How tax 21
exemptions/concessions have contributed to rise of poverty in Pakistan
10. Conclusions 23
(a) Unjust tax system 23
(b) Misuse and abuse of powers by executive 25
(c) Quantum of money foregone that could have been utilised for providing better 32
health, educational and other social needs
(d) Recommendations 33
References 35
Abbreviations 36
About the authors 37
Annex-A: ESTIMATING THE EFFECT OF SRO TAX EXEMPTIONS ON INSTITUTIONAL QUALITY 38
AND ECONOMIC PERFORMANCE OF PAKISTAN
INTRODUCTION 38
ECONOMIC THEORY 38
DATA AND TRENDS 41
Figure 1: Real GDP per capita growth over time 41
Figure 2: Polity IV measures of Institutions over time. 42
EMPIRICAL METHODOLOGY 43
MAIN RESULTS 44
Figure 3: Impulse response of Institutional quality shock on real GDP per capita 44
Figure 4: Impulse response of SRO shock on institutional quality 45
Figure 5: Impulse response of SRO shock on GDP per capita 46
REFERENCES 47
Annex-B: List of major SROs 48
Sales Tax 48
Income Tax 120
Federal Excise 132
Customs Act 156
Annex-C: Budget & Allocations for Social Sectors 270
Annex-D: FBR’s Performance (1996-97 to 2013-14) 277
Annex-E: Official Estimates of Tax Losses/Estimates of Tax Potential 278
Part 1: Official Estimates of Tax Losses 278
Part 2: Independent Estimates of Tax Gap 289
Table A: Discriminatory Taxation 295
Table B: Poor Enforcement Indices of FBR 296
 1

Abstract—Crux of the study

The major tax codes of Pakistan at the federal level—Sales Tax Act, 1990, Income Tax Ordinance,
2001, Customs Act, 1969 and Federal Excise Act, 2005—contain numerous exemptions and
concessions while many are added, modified or withdrawn through executive orders, called
statutory regulatory orders (SROs). This descriptive and analytical study explores how these
exemptions and concessions have not only eroded the tax base but have also contributed towards
widening the rich-poor divide. These waivers, concessions and exemptions are depriving the State of
revenue worth billions of rupees that is urgently needed for the ever-increasing needs of the vast
majority of population for providing basic amenities of life, education, medical, housing and
transport.

The rising poverty and unemployment challenges cannot be successfully met unless the prevailing
tax gap is bridged and the pro-rich tax regime is abolished. Due to non-collection of taxes from the
rich and mighty, Pakistan is heavily indebted as its expenses have far exceeded the resources it
generates. For the fiscal year 2014-15, Rs. 1325 billion has been allocated for debt servicing alone—
although actual expense may touch Rs. 1500 billion (about 77% of total revenue collection). Pro-rich
tax policies, exemptions and concessions granted to them, coupled with leakages in tax collections,
have forced Pakistan to borrow heavily, both internally and externally—total debt is now more than
65% of Gross Domestic Production (GDP). Had these tax concessions not been given and taxes were
collected as per potential, Pakistan would have sufficient resources for meeting day to day expenses
and funding vital development projects in all areas.

Billions forgone as tax exemptions and concessions [see the study by Mr. Sultan Mehmood at Annex
A] could have significantly reduced Pakistan’s debt and fiscal deficit—the twin maladies it is
confronted with. What makes the situation more painful is spending substantial part of taxpayers’
money for tax-free benefits, perks and perquisites for holders of public offices and high-ranking civil-
military officials, compared to money spent on social services—Annex C. A successful tax system
reduces inequalities through a policy of redistribution of income and wealth. In Pakistan, for a long
period of time, progressive rates of income taxes, capital transfer taxes, and wealth tax were used as
means for achieving these ends. However, since 1991, there has been a shift from equitable taxes to
highly inequitable ones. The over-dependence on indirect taxes—even in income tax law under the
garb of presumptive, minimum and separate block taxes—has destroyed the philosophy of
judicious, equitable taxation. This deviation has transferred the burden of taxes from the rich to the
poor. Pakistan’s existing tax system is highly unjust as it taxes the poor for benefit of the rich:
negligible amounts are allocated for social services as evident from figures given at Annex C.

Fair, just and equitable taxation is a prerequisite for establishing a democratic State. This study
explores some vital aspects of the prevailing tax injustice by highlighting how incidence of exorbitant
indirect taxation is inflicting innumerable sufferings on the poor. The study provides analysis of
disparities and distortions due to exemptions [Annex E] that on the one hand are depriving the state
of taxes worth billions of rupees and on the other shifting incidence on the weaker segments of
society. In the end, the paper suggests some remedial actions for equitable tax system, justifying a
case for Tax Justice Campaign in Pakistan.
 2

2. Pro-rich exemptions and rising poverty

The people have to understand that the tax money evaded by the tax cheats represents good
schools, colleges, hospitals, roads and many other projects of welfare stolen from the poor of
the country1

The fundamental responsibility of a democratic government is to tax people on the basis of

their ability to pay and not otherwise. This principle is enshrined in Article 3 of the Constitution
of Islamic Republic of Pakistan, which reads as under:

“The State shall ensure the elimination of all forms of exploitation and the gradual
fulfillment of the fundamental principle, from each according to his ability to each
according to his work”

In the presence of this constitutional command, regressive taxes should be avoided and
progressive taxation based on higher rate of tax as level of income goes up, should be preferred.
Progressive taxation entailing levy of income tax as major component and less reliance on
indirect taxes alone can ensure that the money collected from the rich is utilised for the benefit
of the less privileged classes. In Pakistan, the diametrically opposite situation exists [ref. Case
Studies A and B below and forthcoming paragraphs proving this point by facts and figures].

CASE STUDY A: RICH PROPERTY OWNERS PAYING NIL OR LOWER TAX

The tax system has shifted incidence on the poor by taxing them beyond their ability to pay. For example,
rich property owners—these include generals, judges, bureaucrats and even journalists who, after
getting state lands at throw-away prices, sell them at market price and the gain is not taxed as
“adventure in the nature of trade,” even though so required under section 18 read with section 2(9) of
the Income Tax Ordinance, 2001 treating as business adventure 2. Those who convert them into income-
generating assets e.g. commercial buildings etc—have been paying lower rate of tax on rental income till
tax year 2013 whereas salaried persons on the same income were made to pay much higher tax! This
was clear discrimination [see Table A at the end of paper] but nobody—not even Pakistan’s vibrant
media—took note of it. After hectic campaign 3 by civil society, especially some tax experts, the
concessional tax regime for the rich property owners was removed with effect from tax year 2014
bringing it at par with others.

1
Fiscal Management & Accountability, a discussion paper available at
http://www.pildat.org/Publications/publication/FPLGS/PakistanFiscalManagementAndAccountability.pdf
2
There is even no capital gain tax on sale of immovable property held for more than 2 years. If disposed within two
years of purchase tax is 5 % and if within one year it is 10 %. There was no tax on sale of property till 2011.
3
Tax concession for rich property owners, Business Recorder, June 10, 2011
 3

CASE STUDY B: POOR WIDOWS VIS-À-VIS WEALTHY INVESTORS—INTEREST INCOME TAXATION

A rich person earning Rs. 6 million per annum as interest from bank pays Rs. 600,000 as tax
under presumptive tax regime, whereas actual tax liability on this income for tax year 2013
comes to Rs. 1,322,500. He has been saving an average tax of over Rs. 700,000 per annum since
1991 when 10% flat taxation was introduced benefitting the rich. Total tax saving by him in 22
years is nearly Rs. 122 million. In contrast, a widow earning income of Rs. 390,000 per annum
from the same source, by investing her deceased husband’s gratuity in a national savings
scheme to make both ends meet, has had to pay tax of Rs. 39,000 although this income is below
taxable limits. In 22 years, she was compelled to pay Rs. 858,000 although no tax on this
quantum of income was paid either by a salaried person or a businessman. This kind of unjust
tax system creates economic disparities—it benefits the rich and taxes the poor and weaker
sections of the society4.

It is an admitted official position that despite imposing all kinds of indirect taxes, Federal Board
of Revenue (FBR) has failed to improve the tax-to-GDP ratio—it dipped to 8.2% in 2013-14 from
11.6% in 1996-97—Annex D shows decline in the performance of FBR from 1996-97 to 2013-14.

3. History of Exemptions, waivers and concessions

At the time of independence in 1947, Pakistan inherited a tax system introduced in 1860 by the
British in the Subcontinent although prior to that, license taxes based on profits, trade and
professions were in vogue. The British government enacted Income Tax Act of 1860, a
scheduled income tax patterned after the United Kingdom Tax, in an effort to end the budgetary
deficit which followed the War of Independence of 1857 (called ‘sepoy mutiny’ by the British).
The tax was not intended to be permanent and was repealed in 1865. The Income Tax Act of
1886 was a general income tax that was imposed on traders by some of the provinces beginning
in 1878. This Act continued in force for 32 years, until repealed by the Income Tax Act of 1918.
The 1918 Act consolidated a number of wartime amendments. A graduated super tax on
income over Rs. 50,000 and on the undistributed profits of corporations and other entities was
introduced by the Super Tax Act of 1917 and continued in force through modifications by the
Super Tax Act of 1920. The Income Tax Act and the Super Tax Act were later on consolidated in
another Act i.e. the Income Tax Act of 1922.

In Pakistan, after 1947, the Act remained in force till 30 th June 1979, when General Mohammad
Ziaul Haq, in his capacity as President-cum-Chief Martial Law Administrator, decided to enforce
a new law, namely, the Income Tax Ordinance, 19795. This Ordinance was amended through
innumerable Presidential Ordinances, annual Finance Acts/Ordinances and SROs issued by the

4
The same position exists for dividend income. Its taxation at reduced rate of 10% favours the rich enormously.
5
For the first time in this law, provision for issuance of SROs was created through section 14 that was retained in
the new law promulgated by General Pervez Musharraf in 2001.
 4

Executive under the delegated authority enjoyed by it. Over the period of time, many of its
lacunae were removed. On 13th September 2001 a new law, namely, Income Tax Ordinance,
2001, was promulgated by General Pervez Musharraf as part of the condition to get the last
tranche of the Stand-By Arrangement of the IMF.

In 1991 through substantial changes, the income taxation in Pakistan was largely converted into
indirect taxation through presumptive taxes to reduce burden on the rich and increase
incidence on the poor—this was done by the civilian government of Mian Mohammad Nawaz
Sharif. These presumptive taxes were retained in the new Income Tax Law introduced with
effect from 1 July 2002, though notified in 2001 through a Presidential Ordinance by General
Pervez Musharraf.

How presumptive taxation has become indirect tax under the Income Tax Ordinance, 2001 is
evident from the fact that commercial importers pay fixed rate of income tax [presently 6%] on
value of imports as increased by indirect taxes and duties, which is full and final liability in their case.
They pass on the burden of this tax to the purchaser—this in no way can be called income tax paid by
them though FBR takes its credit under direct tax collection. Similar position exists for contractors,
service providers (other than companies) and commission agents etc.

Tax system is one of the fundamental elements of a constitutional democracy. Important

questions such as who is to be taxed, how much and for what purposes, are essentially political
questions. How tax obligations are to be imposed, administered and enforced are constitutional
questions. Imposition, administration and enforcement of taxes raise problems about rule of
law, proper division of powers, role of judiciary and so on. Imposition and administration of
taxes is purely a constitutional issue, which cannot and should not be tackled by the executive
arm of the government as in the case of Pakistan where FBR “keeps on extending exemptions
and concessions through SROs and devising tax amnesty schemes meant for powerful business
houses mainly owned by politicians in power”6.

Pakistan is a unique country where the Federal Government (executive branch of the state) is
empowered to exempt any income or specific persons from income tax, sales tax, customs or
regulatory duties, or federal excise or to prescribe special reduced rates of tax for certain
persons or allow a reduction in tax liability through Statutory Regulatory Orders (SROs) notified
in the official gazette without seeking the consent of Parliament—see Annex E for tax forgone as
per official figures and independent analyses 7. Though the law requires that all amendments
made through SROs during a financial year should be placed before the National Assembly at
the end of that year [section 53(3) of Income Tax Ordinance, 2001], it is a matter of record that
this provision has not been adhered to. Since 1979, the executive authority [vested in the

6
Short of target, Dr. Ikramul Haq, The News, April 17, 2014
7
Economic Surveys published every year by the government before the announcement of federal budgets and
certain studies conducted independently.
 5

Federal Government via FBR] under delegation of power violated this provision of law 8. This
practice continues till today—this provision has been abused by both the military and civil
governments alike9.

Under the existing income law since 2003, FBR has inserted a number of exemption clauses in
the Second Schedule to the Ordinance without placing the same before the Parliament, despite
announcement of clear policy framework that no new exemptions would be granted. There is
nothing in the Income Tax Ordinance, 2001 to restrict or curtail discretion of the delegated
authority abused by the Federal Government through FBR, to grant exemptions and concessions
through executive orders rather than through legislative process10.

The sales tax and federal excise laws are also infected with numerous exemptions and
concessions—shifting the burden from the rich to the poor. Custom duties, sales tax and excise
duty are collected from the public but the rich fail to bear their burden. It can thus be concluded
that the tax system of Pakistan is in its essence clearly anti-poor and pro-rich 11.

The issuance of SROs for the benefit of the rich and non-compliance of tax laws by the elected
members in Pakistan has recently attracted the attention of international community. 12 The
government is now seriously considering withdrawing the existing SROs within three years’
time. As regards compliance of tax laws by the parliamentarians, with the exception of a few,
returns have now been filed by all after getting a grace period and their tax directory has been
published by the FBR. This shows that pressure from civil society and international community is
paving the way for some improvement in tax compliance in Pakistan in the coming days 13.

8
See articles in PTCL 1998 (Jour. 45) and Taxation, Volumes 78 & 79 at page 82 and 98 respectively
9
“The previous PPP government lost about Rs. 1 trillion in custom duties, sales tax and income tax exemptions
during its five-year tenure while the PML-N government gave away Rs. 104 billion within first six months of its
rule. Till February 2014, the PML-N government allowed custom duty exemptions of Rs. 92bn, Rs. 7.3bn worth of
sales tax and Rs. 2.4bn income tax. The exemptions have been granted under the Statutory Regulatory Orders, which
were in place for quite some time. By just issuing an SRO, the government can award tax exemption of any nature to
a business of its choice. Soon after coming to power, the present government promised in its agreement with the
International Monetary Fund to review the policy about SROs within three years. Finance Minister Ishaq Dar had to
create a consensus on the issue among stakeholders — industrialists and the government organisations — by March
this year. But instead of reducing the number of SROs, Mr. Dar added new ones to the list, an official told Dawn.
Powerful business lobbies benefiting from the SROs are the major hurdle, the official said. The Federal Board of
Revenue has conducted a study to minimise tax exemptions, showed the documents according to which general and
sectoral concessions remained in place for quite some time. The concessions could be categorised under: free trade
and preferential trade agreements; imports of essential inputs for various industries; machinery and equipment not
manufactured locally; and inputs for export oriented goods. The number of SROs about sales tax and income tax
exemptions are either likely to be rationalised or deleted. According to the documents, “certain principles have been
formulated on the basis of which a number of categories of SROs issued from time to time are planned to be deleted
and rationalised over a period of three years”—Tax exemptions raise new issues, DAWN, April 14, 2014.
10
Perpetual violation of law, PTCL 1998 (Jour. 45)
11
Ibid
12
Most Pakistani Leaders Don’t File Returns, Study Finds, Declan Walsh, New York Times, December 12, 2012
13
Phase-wise withdrawal of exemptions on the cards, Business Recorder, May 14, 2014
 6

4. Analysis of pro-rich exemptions/concessions from

equity principle view
The narrative that Pakistanis do not pay taxes—popular with tax administrators, some analysts,
TV anchors, academicians, policymakers and foreign donors—is incorrect. The reality is that the
common citizens of Pakistan are over-taxed, whereas the elites not only enjoy unprecedented
tax breaks but also thrive on the taxes collected from the masses instead of utilizing them for
their welfare14—Annex C shows how little is allocated for social services in Pakistan both at
federal and provincial levels as compared to amounts given to maintain huge houses and other
perquisites for public office holders, members of assemblies and high-ranking civil-military
officials.

It is an undeniable fact that out of total registered mobile users of 130 million, about 60 million
active users, with effect from July 1, 2014 are paying exorbitant tax of 33.5%—federal excise or
sales tax on services of 19.5% and adjustable income tax of 14% [previously it was 15%].
Majority has income below the taxable limit. There is no way they can get refund of the
adjustable 15% income tax withheld at source, as cost of filing of return would be a lot greater
and the procedure too cumbersome (every refund application is to be filed online) and even if
all the requirements stand fulfilled, tax officials would block payment in addition to harassing
the unsuspecting taxpayer. This is the reason why only 840,000 filed returns in 2013 whereas
nearly 60 million paid income tax as mobile users (prepaid) alone.

While the poor are subjected to exorbitant taxes, the beneficiaries of state property, those who
get urban and agricultural lands as rewards/awards and favours because of their clout, are not
paying taxes even though law so requires. FBR has failed to enforce tax laws as evident from the
Tax Directory of Legislators (2013)—initially 70% of them did not file tax returns as required
under the law15. In the wake of criticism from media and civil society, the majority filed returns
by February 28, 2014—grace period allowed by FBR. Their tax declarations were not selected
for audit by FBR though quantum declared in majority cases was too small to justify their
standard of living16. While the powerful are not paying income tax on their actual incomes,
regressive indirect taxes are increasing economic deprivations of the poor. In this scenario, FBR
has been unable to meet fixed revenue targets for the last many years. In the fiscal year 2013-14,
FBR failed to collect the twice downward-revised budget of Rs. 2275 billion—original target
was Rs, 2475 billion. It collected Rs. 2266 billion. The shortfall could have been converted into
surplus of Rs.300 billion had exemptions not been granted through SROs. FBR collected
Rs.1936 billion against the target of Rs. 2381 billion in 2012-13—at 3%, it was the lowest
growth in 13 years. In fiscal year 2011-12, there was shortfall of Rs. 75 billion, even though the
target was revised downwards to Rs. 1952 billion. In 2010-11, there was a shortfall of Rs. 38

14
Short of target, Dr. Ikramul Haq, The News, April 17, 2014
15
Nearly 70 percent of Pakistani lawmakers don't file taxes by Katharine Houreld, Reuters, December 2, 2012
16
Tax cheat politicians named, The Nation, December 13, 2013. It also quoted Ayaz Amir, a lawmaker and
landowner from Punjab as “the main problem lay with the broken system of tax enforcement. Also, the problem is
not limited to lawmakers but to the entire prosperous class.”
 7

billion. FBR has failed to tap the actual tax potential that is not less than Rs. 6 trillion—for
working see Annex E. Non-collection of tax to this extent is partly due to exemptions and
concessions worth billions of rupees and primarily due to non-enforcement of tax obligations,
inefficiency and corruption. At provincial level, there is no will to collect agricultural income tax
from rich absentee landlords—share of this tax is even less than 0.5 percent of GDP17.
Exhaustive discussion on non-collection of income tax on agricultural income is available at:
www.pildat.org/.../BP43-TaxonAgricultureIncomeinPakistan.pdf

Presumptive Taxes/Oppressive taxes

Presently, about 70% collection by FBR is from imports and exports, contracts and
“extraordinary” profits by petroleum companies and banks. Importers, contractors, retailers and
even service providers are in fact, passing on their tax burden to consumers and clients,
courtesy presumptive tax regime introduced in income tax law in 1991-92 and widened
manifold since then. This erratic taxation, at the expense of equity and poor people, is not even
helping the government to bridge fiscal deficit. FBR has failed to improve tax-GDP ratio, which
fell to 8.2% in fiscal year 2013-14 from 8.5% in the preceding year. The burden of a number of
presumptive taxes levied under the guise of income tax law (which are nothing but crude forms
of indirect taxes) has been shifted from income earners to consumers and clients. These
presumptive taxes have not only distorted the whole tax system, destroyed economic growth
and made the consumer/client the ultimate sufferer but these short-term, figure-oriented
measures have failed to bridge the burgeoning fiscal deficit that will soon be Rs. 2 trillion.

On the one hand, the poor whose incomes fall far below taxable limits under the income tax law
are taxed and on the other, funds extorted from their hard earned money are not used for their
benefit18. The powerful civil-military bureaucracy, ministers, state ministers, advisers, senators,
MNAs and MPAs together received Rs. 500 billion in the fiscal year 2012-13 as perks and
perquisites alone19. Not only this, the powerful segments did not pay a single penny as tax on
plots and benefits20 received free or at concessional rates, in utter violation of section 13(11) of
the Income Tax Ordinance, 2001, which says:

“Where, in a tax year, property is transferred or services are provided by an employer

to an employee, the amount chargeable to tax to the employee under the head
“Salary” for that year shall include the fair market value of the property or services
determined at the time the property is transferred or the services are provided, as
reduced by any payment made by the employee for the property or services.”
Section 14(b) of the Ordinance defines “services” to include the provision of any facility” and
the concept of “fair market” is defined in section 68 as under:
“68. Fair market value.– (1) For the purposes of this Ordinance, the fair market value of
any property or rent, asset, service, benefit or perquisite at a particular time shall be the
price which the property or rent, asset, service, benefit or perquisite would ordinarily
17
www.pildat.org/.../BP43-TaxonAgricultureIncomeinPakistan.pdf
18
Public parasites, The News on Sunday [Political Economy section], July21, 2013
19
Taxing task, The News on Sunday [Political Economy section], March 16, 2014
20
Public parasites, The News on Sunday [Political Economy section], July21, 2013
 8

fetch on sale or supply in the open market at that time.

(2) The fair market value of any property or rent, asset, service, benefit or
perquisite shall be determined without regard to any restriction on transfer or to the
fact that it is not otherwise convertible to cash.
(3) Where the price referred to in sub-section (1) is not ordinarily ascertainable,
such price may be determined by the Commissioner”.
Section 39(1)(j) of the Ordinance is also attracted which declares the following as income
chargeable to tax:
“The fair market value of any benefit, whether convertible to money or not, received
in connection with the provision, use or exploitation of property”.
The beneficiaries have not paid any tax on getting State land, free accommodations and other
benefits—all covered in section 13(11) and 39(1)(j) of the Income Tax Ordinance, 2001. FBR
failed in enforcing these provisions as its own top notches were beneficiaries of these favours 21.
An ex-Member of FBR wrote a letter to then Finance Minister, Abdul Hafeez Shaikh, that
massive tax evasion/loss of revenue had occurred due to non-taxation of government property
given to the high-ranking officials at concessional rates but the minister took no action and “his
successor has also not taken any action too,” as the complainant conveyed to us during a
telephonic interview.
Pakistan has become a tax haven for the rich and mighty 22. The poor are victims of regressive
taxation while the elites get extraordinary tax concessions. But, even where taxation is provided
the rich do not discharge their liabilities and the bodies responsible for collecting taxes at
federal and provincial levels, instead of taking any punitive action, extend them legal cover
through SROs, extending tax amnesties and immunities for avoidance and condoning past lapses
of non-compliance, or just remain silent and look the other way.
While the poor sections of society are paying exorbitant indirect taxes on commodities they
consume and are being crushed under inflation, the elites are enjoying extraordinary tax
benefits. For example, the following have been made totally tax free:
1. The perquisite represented by the right of the President of Pakistan, the Provincial Governors
and the Chiefs of Staff, Pakistan Armed Forces to occupy free of rent as a place of residence any
premises provided by the Government.

2. The perquisite represented by free conveyance provided and the sumptuary (entertainment)
allowance granted by Government to Provincial Governors, the Chiefs of Staff, Pakistan Armed
Forces and the Corps Commanders.

21
Public parasites, The News on Sunday [Political Economy section], July21, 2013
22
The Swiss accounts by Huzaima Bukhari & Dr. Ikramul Haq, Business Recorder, September 6, 2013
 9

3. The perquisites and allowances provided or granted by Government to the Ministers of the
Federal Government.

4. The perquisites represented by the right of a judge of the Supreme Court of Pakistan or of a
judge of High Court to occupy free of rent as a place of residence any premises provided by
Federal or Provincial Government, as the case may be, or in case a judge chooses to reside in a
house not provided by Government, so much of income which represents the sum paid to him
as house rent allowance.

5. The following perquisites, benefits and allowances received by a Judge of Supreme Court of
Pakistan and Judge of High Court, shall be exempt from tax:
a. Perquisites and benefits derived from use of official car maintained at Government
expenses;
b. Superior judicial allowance payable to a Judge of Supreme Court of Pakistan and Judge
of a High Court;
c. Transfer allowance payable to a Judge of High Court;
d. The services of a driver and an orderly;
e. 1000 (one thousand) free local telephone calls per month;
f. 1000 units of electricity as well as (25 hm3 * of gas) per month and free supply of water;
and
g. 200 litres of petrol per month.
[If during service, a judge dies, exemption from tax in respect of benefits and perquisites
mentioned above provided to his widow shall also be exempt].

The above shows that the powerful in Pakistan live in palatial houses at the expense of
taxpayers’ money, while the poor suffer from hunger, floods, disease and vast majority lack even
basic facilities like drinking water, what to talk of health and education 23. Tragically, these
powerful elements even do not pay taxes on perquisites and benefits enjoyed by them. Then
within a group there is discrimination. The judicial allowance of judges of the Supreme Court
and High Courts is exempt from tax, whereas the same is taxable in the hands of the lower
judiciary. This constitutes discrimination under Article 25 of the Constitution.
In Pakistan, the poor are subjected to heavy and cruel taxation to finance the luxuries of
elites that enjoy free perquisites, benefits. The way they waste and plunder the taxpayers’
money is no secret 24. The country is surviving on bail-outs from IMF and borrowings from
other sources due to perpetual failure in taxing the rich. Since 1977, revenues worth
trillions of rupees have been sacrificed by governments—civil and military alike—
extending unprecedented exemptions and concessions to the privileged classes. Gradually,

23
Public parasites, The News on Sunday [Political Economy section], July21, 2013
24
Public parasites, The News on Sunday [Political Economy section], July21, 2013
 10

the governments abolished all progressive taxes e.g. Estate Duty, Gift Tax, Capital Gain Tax
etc.

The government of Pakistan Muslim League (Nawaz), on assumption of power for the third time in
June 2013, “instead of taking strict and firm actions against tax evaders and wealth plunderers
started protecting them and gave many tax concessions and relaxations to the rich and mighty” 25.
The Finance Minister proudly announced in September 2013 that “all demands of traders relating to
tax matters have been accepted” 26. With this announcement and tax amnesties personally
announced by the Prime Minister for non-filers, authority of FBR was further eroded. As in the past,
the non-filers did not file income tax returns despite getting an unprecedented amnesty scheme
requiring them to pay only Rs. 20,000 rupees for a tax year with no questions asked and no audit
conducted. The amnesty scheme of Prime Minister which expired on April 30, 2014, received
extremely cold response even from the tax defaulters—only 3395 persons availed it paying a paltry
amount of Rs. 87.7 million.

The historic decision of taxing “agricultural income,” passed by the Federal Parliament in the
shape of Finance Act, 1977, was thwarted by the military regime of Ziaul Haq. Through this law,
the Parliament amended the definition of “agricultural income” as obtaining in section 2(1) of
then Income Tax Act, 1922 to tax big absentee landlords. This was a revolutionary step to
impose tax on agricultural income at federal level for the first time in the history of Pakistan, but
was foiled by a military ruler—General Mohammad Ziaul Haq. During Zia’s rule of 11 years
[1977-88] and that of General Musharraf for nearly 9 years [1999-2008], absentee land owners
(including high-ranking military officials who received State lands as gallantry awards or
otherwise) did not pay a single penny as agricultural income tax or wealth tax. Taxation of
“agricultural income,” is the sole prerogative of provincial governments under the 1973
Constitution of Pakistan. All the four provinces have enacted laws to this effect, but total
collection in 2013-2014 was less than Rs. two billion against actual potential of Rs. 200 billion
(share of agriculture in GDP that year was 22%)27.
No one has calculated how much tax loss Pakistan has suffered perpetually since 1977 on
account of non-taxation of agricultural income alone as suggested under Finance Act, 1977. If
total loss of revenue through various exemptions, non-taxation of benefits given to elites
through Statutory Regulatory Orders (SROs) issued during the last four decades is added, the
amount comes to over Rs. 100 trillion—this explains how unprecedented concessions to the
rich has made the State poorer rendering every citizen of this country to enormous
indebtedness. Pakistan would not have required heavy borrowing, if huge tax losses by way of

25
Nawaz Sharif & cronyism, Business Recorder, December 6, 2013
26
Dar accepts all demands of FPCCI, The News, September 22, 2013
27
Agricultural income taxation, Anjum Niaz, http://cdpr.org.pk/wp-content/uploads/2013/05/Agricultural-Income-
Tax.pdf
 11

granting exemptions and concessions were not incurred notwithstanding losses due to poor
enforcement and corruption.
How the governments were abusing taxpayers’ money can be adjudged from the decision of
Supreme Court on April 17, 2013 suspending the March 14, 2013 notification issued by Interior
Ministry granting former interior minister Rehman Malik and his predecessors lifetime perks
and privileges. Hearing the suo moto notice case regarding unlimited perks and privileges
granted to two former prime ministers, all former interior ministers, Sindh chief minister and
other senior officials by the outgoing government, even the five-judge bench of apex court
merely sought a response from relevant authorities in this regard instead of declaring these as
unlawful.

How SROs suspend laws passed by the Parliament

The Finance Act 2013 passed by the Parliament on June 26, 2013 requiring the banks to share
transactions, deposits exceeding one million rupees was suspended by SRO 115(1)/2014 of 19-2-2014 in
the case of existing taxpayers, allowing them to keep on evading taxes by just paying small amounts.
Even in the case of persons not filing tax returns, no information has been obtained from banks till today.
Thousands of cases selected for audit through random computer ballot for tax year 2013 could have
helped FBR in achieving the tax collection target of Rs.2475 billion but the Prime Minister’s amnesty
scheme made that impossible.

The prime aim of taxation in any democratic set-up is redistribution of wealth. In Pakistan,
however, just the opposite policy exists. The rich get tax concessions and breaks. Wealth is
shifted from the poor to the rich through artificial hike in prices. In 2010, Mr. Shahid Burki wrote:
“the super-rich 18,000 people have a combined income of $1.31 billion or $72,700 per capita.
The super-rich–the 18,000 who make up 0.001 percent of the population—earn 180 times as
much as the poorest 18 million. The richest 40,000 people in the country have combined
income equal to that of the poorest 18 million people 28. The absentee landlords-cum-
businessmen-turned-politicians through manipulative means get higher prices for everything
they produce. Then on top of that they get tax exemptions and concessions and shift the tax
burden on the poor. This is the picture that emerges from the existing tax system in Pakistan. 29

5. Abuse of delegated powers by executive to grant

exemptions and concessions
How the Executive has been abusing delegated powers available to it under tax codes is well
documented—see ‘CASE STUDY: SRO USED FOR VESTED INTEREST BY HIGH-RANKING CIVIL
28
How rich are the Pakistani rich? Shahid Javed Burki, Express Tribune, May 16, 2011
29
Public parasites, The News on Sunday [Political Economy section], July21, 2013
 12

SERVANTS’ below. The successive governments have used SROs to create discriminations
among people equally placed. In many cases these are abused to favour the influential
segments of society. For example, a commercial importer of polyester filament yarn, a basic raw
material for the domestic fabric industry, is subject to pay additional value-added tax (VAT) of
two percent and withholding income tax at three percent due to which the cost of import is
4.51 percent higher than that of the industrial importer, which is subject to the value-added tax
at zero percent and withholding income tax of one percent only. This provides sufficient
incentive and motivates unscrupulous commercial importers to import raw materials under the
guise of manufacturers. This makes genuine commercial importers uncompetitive. It also causes
the national exchequer to suffer heavy tax losses as more than 70 percent of the domestic
demand of polyester filament yarn is met through imports.

CASE STUDY: SRO USED FOR VESTED INTEREST BY HIGH-RANKING CIVIL SERVANTS

Through SROs, FBR provides “legal” ways and means to mighty sections of society to amass huge
wealth—exemptions and concessions given to them were of Rs. 5,500 billion in the last 5 years alone
as admitted by Chairman FBR before the Senate Standing Committee on Finance & Revenue on May
13, 2014. The most glaring example of abuse of this delegated power surfaced when before presenting
the Finance Bill, 2013, FBR issued many beneficial notifications, especially for sugar and steel
industries related to persons in power. In 2012 when officers of Grade 19-22 were allowed monetized
transport allowance, SRO 569(I)/2012 was issued on 26 May 2012 providing that government officials
in grade 20-22 would pay just 5% tax on this allowance as a separate block of income. Through Finance
Act 2013, flying allowance of pilots/flight engineers/navigators of Pakistani airlines has been clubbed
with salary in case of allowance exceeding basic salary, the Finance Minister did not provide similar
treatment for mighty bureaucrats for their transport allowance. This shows how elites protect each
other—professionals like pilots get a raw deal just because they are not part of the ‘state elitism’!

Approximately 2,000 tariff lines (representing 50 per cent of the SROs) are liable for import
duties of less than 5.1 per cent, with almost 900 of them zero-rated! This is how tax laws have
become a mockery of rule of law in Pakistan. The Chairman FBR himself 30admitted that “the
government is facing a massive revenue shortfall as two third imports are duty free. It is a
matter of grave concern for the FBR that the dutiable imports have dwindled in a major way
during the current fiscal year.” 31 The Chairman, during a hearing before the Senate Standing
Committee on Finance on May 13, 2014, revealed that “cost of tax exemptions granted over the
years to the affluent was Rs. 480 billion per annum. He was asked to explain “why FBR keeps
on issuing SROs due to which customs duty, excise, sales tax and even income tax at source is
not being collected and who are the beneficiaries?” 32. The Chairman FBR said: “all of these
exemptions cannot be withdrawn, as some are socially sensitive while others are protected
30
The News, January 22, 2014
31
Ibid
32
Business Recorder May 14, 2014
 13

under the constitution.” He further revealed that “in the first seven months of the current fiscal
year, Rs. 320 billion worth of exemptions were given that included income tax exemption given
to independent power projects (IPPs) for electricity producers that is protected through
agreements and will not be easy to withdraw.”

The Chairman was incorrect on both the points. First of all, no exemption can be granted
through any statutory regulatory order (SRO) as held by the Supreme Court in Engineer Iqbal
Zafar Jhagra and Senator Rukhsana Zuberi v Federation of Pakistan and Others (2013) 108 TAX 1
(S.C. Pak). As regards exemption granted to IPPs, it can also be withdrawn as held by the Lahore
High Court in AES Pak Gen (Pvt) Company Lahore v Income Tax Tribunal Lahore (2006) 93 TAX
159 (H.C Lah.) and endorsed by the Supreme Court in Uch Power (Pvt) Ltd and others v Income
Tax Appellate Tribunal and others 2010 SCMR 1236.

Through SROs, the Executive nullifies provisions of tax laws approved by Parliament, whereby
1973 Constitution unmistakably provides in Article 77 that the sole prerogative to levy taxes is
with the Legislature and this power cannot be delegated as enunciated by the apex court in
Engineer Iqbal Zafar Jhagra and Senator Rukhsana Zuberi v Federation of Pakistan and Others
(supra) that is binding on all institutions and persons under Article 189. The noted economist
and ex-Governor of State Bank of Pakistan, Mr. Shahid Kardar, aptly summarised: “It is indeed
revealing that the cost of such tax waivers and exemptions is in excess of Rs. 350 billion a year,
and then we lament that our tax-to-GDP ratio is amongst the lowest in the world!” 33

In the case of customs duties, as against the effectively traded 5,000 tariff lines there are SROs
covering 84 per cent of them — impacting 45 per cent of imports and encompassing almost all
sub-sectors, rendering the actual tariff different from the standard tariff. This has resulted in the
customs tariff having multiple rates, several exemptions and several conditions requiring
fulfillment, providing opportunities for discretionary use of powers by officials, raising the cost
of doing business and encouraging malpractices, corruption and mis-declaration for evading
duties. Similarly, SROs issued under Sales Tax Act, 1990, Federal Excise Act, 2005 and Income Tax
Ordinance, 2001 extending preferential treatment enabling the beneficiaries to ‘extract rents’
and making easy money without having to make the effort to produce and competitively market
a good quality product. “Many a rags-to-riches story can be traced to this ubiquitous
instrument, which has made large chunks of the manufacturing sector addicted to high levels of
protection”34.

TEXTILE SECTOR: INTERVIEW OF MR. ASHRAF GANDHI35

33
Shahid Kardar, The Curse of SROs, The Dawn, December 25, 2012
34
Shahid Kardar, The Curse of SROs, The Dawn, December 25, 2012
35
Ex-President All Pakistan Yarn Merchants Association
 14

“Our governments of the rich are for the rich; they never bother to promote middle class and
less privileged by creating equal opportunities. They rather promote the elites. As far as the
recent rupee’s appreciation is concerned, the big guns have not suffered because at the time of
making any sale, they sell their proposed sale in dollars to the banks thus making no difference
whether rupee depreciates or appreciates. The government has obliged the all-powerful lobby
of All Pakistan Textile Mills Association (APTMA) by bringing back the customs duty of 5 percent
on the import of yarn from India although their contribution in the textile export earning is
merely 20 percent. More labour is involved in other textile sectors e.g. spinning units that have
become ultra- modernized.”

According to a news report36, FBR has conducted an in-depth exercise to simplify and revise
three major concessionary customs notifications, namely, SRO 565.(I)/2006, SRO.567(I)/2006
and SRO.575(I)/2006 in the coming budget (2014-15) on the basis of laid down principles. FBR is
presently finalising amendments to the SROs in consultation with the Engineering Development
Board (EDB). The SROs are being reviewed on the basis of following principles set by FBR:

Principle-1: Non-utilised or minimally utilised entries; (Deletion of entries in SRO indicating

import value if less than Rs 30 million annually).

Principle-2: Deletion of duplicate or redundant entries in SROs.

Principle -3: 80:20 Principle —if 80 percent import is under SRO, entry be shifted to tariff on
SRO rate or to closest higher tariff slab.

Principle-4: 20: 80 Principle—if 20 percent import is under SRO, entry be shifted to Pakistan
Customs Tariff on tariff rate.

Principle-5: If import under SRO is between 20 percent to zero percent:

1. If difference between SRO rate and tariff rate is (less than or equal to) 2 percent, entry
be shifted to tariff at normal tariff rate).

2. (If concession deemed essential, entry be shifted to tariff at closest higher rate).

3. (If concessions deemed critical, entry be shifted to Chapter 99 of the PCT at

concessionary rate).

4. (All others to normal tariff rates).

The EDB, in continuation to previous practice, has initiated Competitiveness and Efficiency
Improvement Exercise for the Fiscal Year 2014-15, as per prescribed Terms of References

36
Business Recorder, April 22, 2014.
 15

(ToRs)/guiding principles; to redress the tariff and other related issues, which are hindering
competitiveness of the industry and their entry into global market. FBR has also undertaken an
extensive exercise for simplification/revision of concessionary SROs [SRO 565(1)/2006, SRO
567(1)/2006 & SRO 575(l)/2006] with a view to analysing the impact of concessionary regime
on industrial growth, export competitiveness, import substitution, further localisation of parts
and more importantly passing on the benefit of concessions to the end consumers. FBR has
claimed that it is carrying out the exercise on the basis of the afore-stated principles. The critics
say that the process is essential but it should be through consultative process in the National
Assembly and senate and not merely behind the closed doors of FBR.

6. Constitutional provisions vis-à-vis delegation of

legislative power to the Executive by the Parliament to
grant exemptions and concessions.
While FBR has been continuously engaged in inserting, rescinding and amending tax codes
through SROs, the Supreme Court of Pakistan in a decision given on June 21, 2013 categorically
held that no such power can be exercised by any executive authority. After discussing all
relevant provisions of the Constitution, the Supreme Court declared such powers given to
executive by the Parliament as unconstitutional. Strangely, even after this verdict of the
Supreme Court [Engineer Iqbal Zafar Jhagra and Senator Rukhsana Zuberi v Federation of
Pakistan and Others (supra), which is binding on all organs of the State, the government is still
levying or exempting taxes through SROs. This position has yet not been debated even by the
Parliamentarians.

The Supreme Court has concluded that delegation of powers for granting exemptions and
concessions given in tax laws clearly violates the supreme law of the land. Amending tax codes
by way of SROs is unconstitutional in view of Article 77 read with Article 162 of the Constitution
of Pakistan. Through these SROs, the government bypasses the Parliament and commits
violation of Constitution of Pakistan. The Supreme Court has enunciated this in Engineer Iqbal
Zafar Jhagra and Senator Rukhsana Zuberi v Federation of Pakistan and Others (supra) as under:

“It is well settled proposition that levy of tax for the purpose of Federation is not
permissible except by or under the authority of Act of Majlis-e-Shoora (Parliament).
Reference in this behalf may be made to the case of Cyanamid Pakistan Ltd. V. Collector
of Customs (PLD 2005 SC 495), wherein it has also been held that such legislative powers
cannot be delegated to the Executive Authorities. Also see Government of Pakistan v.
Muhammad Ashraf (PLD 1993SC 176) and All Pakistan Textile Mills Associations v.
Province of Sindh (2004 YLR 192).” [Page 18, Para 20]
 16

As held by Supreme Court, taxes should be imposed by Parliament as envisaged in Article 142
read with Article77 and 79. No taxation that includes giving exemption is permissible by any
executive authority. The Executive can only be given rule-making powers. The moot point is
whether delegation to grant any tax exemption or concession can be made to the Executive or
not. As law stands today, Parliament cannot delegate taxation powers to the Executive. This
issue needs to be debated within the Parliament and in public as well. In the wake of the
judgement of the Supreme Court in the case of Engineer Iqbal Zafar Jhagra and Senator
Rukhsana Zuberi v Federation of Pakistan and Others (supra), it was the duty of the Law
Ministry to prepare a summary and bring the matter to the knowledge of the members of
Parliament through the Cabinet. “No such action is taken by the ministry even after review
petition filed against the above order which was dismissed by the Supreme Court” 37.

On December 5, 2013, the Ministry of Finance told the National Assembly that a committee was
formed to review the SROs 38. Ministry of Finance in a written reply to a question of Rai Hasan
Nawaz Khan MNA, told the House that a study was being conducted on tax expenditures for
which expression of interest had already been advertised. A number of professional bodies had
offered to conduct the study, which were being evaluated/short-listed.

Cost of SROs in 2012-13

The House was told that cost of customs duty exemption in 2012-13 was Rs. 129 billion while
that of Income Tax and Sales Tax exemptions in financial year 2012-13 was Rs. 119.829 billion. A
committee, Chaired by Chairman FBR, was constituted by the Finance Minister to review the
concessionary regime and to chalk out a plan “for minimisation of SROs.” The point missed by
the Ministry of Finance was that the very issuance of SROs for creating exemptions was already
declared unlawful by the Apex Court. The cost of SROs and other exemptions under income tax
where benefit goes to the rich is documented at Annex E.

The House was informed that the committee would submit a comprehensive plan by December
31, 2013—though it has not been submitted till today. The Ministry conceded before the House
that “It is a fact that exemptions from custom duties are allowed through Statutory Regulatory
Orders (SROs) and their cost to the exchequer runs into billions. These SROs are issued under
Section 19 of Customs Act, 1969 which empowers Federal Government to exempt whole or any
part of customs duty chargeable on imported goods” 39. The Ministry maintained that these
SROs were issued for four major purposes

37
Undesirable legislation, Business Recorder, April 4, 2014
38
FBR forms panel to review SROs, Business Recorder, December 6, 2014
39
FBR forms panel to review SROs, Business Recorder, December 6, 2014
 17

1) To provide relief to general public (e.g. exemptions on import of wheat, sugar, diesel,
medicines, vegetable and pulses etc);

2) To support local industry by lowering their manufacturing costs through reduction in duty on
their inputs;

3) To increase competitiveness of export sector; and

4) To gain benefits of trade through free/preferential trade agreements with major trading
partners.

The Ministry told the House that “the exemptions are allowed as per the policy of the
government, i.e. to attract direct foreign investment, promote certain sectors, grant relief to
taxpayers under special circumstances etc. The issuance of SROs is necessitated to
streamline implementation of law and to address unforeseen events in taxation after release
of Budget. If the provision for issuance of SROs is not available, then all amendments/relief
required have to be passed by the parliament which is a time consuming process. Therefore,
the Parliament in its wisdom has empowered the Federal Government/Board to issue
SROs” 40.

The stance of the Ministry may appear to be convincing but the fact remains that it is in
violation of Constitution of Pakistan. In India, having the same history of adopting British tax
laws and almost identical constitutional provisions, there is no scheme for issuance of SROs by
the Executive. The Parliament will have to amend the Constitution if it wants to delegate
taxation powers to the Executive. The present delegation amounts to abdication of powers that
the Supreme Court has clearly held in Engineer Iqbal Zafar Jhagra and Senator Rukhsana Zuberi
v Federation of Pakistan and Others (ibid) is ultra vires being not in conformity with Article 77 of
the Constitution.

7. Abdication of taxation power by the Parliament in

favour of the Executive
The issue of SROs granting exemptions and concessions has yet not been debated from the
constitutional point of view. “Reduction of duties and tax concessions for cartels possessing
enormous money power by FBR, extended by using its executive authority available in the form
of SROs, has created innumerable tax distortions in tax system. The burden of taxes in the wake

40
Ibid
 18

of such concessions is invariably shifted on the poor” 41. Pakistan is a unique country where the
executive authority can conveniently undo tax laws passed by the Parliament 42 under delegated
powers which is gross violation of Article 162 of the Constitution of Pakistan, which reads as
under:
162. Prior sanction of President required to Bills affecting taxation in which
Provinces are interested: - No Bill or amendment which imposes or varies a tax or duty
the whole or part of the net proceeds whereof is assigned to any Province, or which
varies the meaning of the expression “agricultural income” as defined for the purposes
of the enactments relating to income-tax, or which affects the principles on which under
any of the foregoing provisions of this Chapter, moneys are or may be distributable to
Provinces, shall be introduced or moved in the National Assembly except with the
previous sanction of the President.”

Article 162 debars even the National Assembly to grant exemptions without the prior approval
of the President but interestingly, this power has been delegated unconstitutionally to an
executive authority by the Parliament. The experts rightly raise a question as to how Parliament
can delegate a power which it cannot exercise itself without the prior sanction of the President?
By delegating powers under tax codes, the Legislature has violated Article 162 of the
Constitution.

All Chambers of Commerce raise voice against SRO culture

“All the Chambers of Commerce and Industry are unanimous to end the harassment and SRO culture and
simplification of taxation system in the country and broaden the tax net to increase the revenue and
they are agreed conditionally to cooperate with the Federal Board of Revenue in tax-collection”—
Khawaja Muhammad Usman, President of Multan Chamber of Commerce & Industry, quoted in Business
Recorder, April 22, 2014.

Dr. Kaiser Bengali, a noted economist and ex-technical member of National Finance Commission
from Sindh, in an interview with a newspaper while criticizing revenue leakages through FBR,
said “Statutory Regulatory Orders (SROs) are a major source of revenue loss, but this matter has
been swept under the carpet by placing it with a committee to be headed by the chairman of
FBR – the very organisation that has vested interest in the whole SRO business” 43. “The giving of
tax breaks by the federal government in the middle of the year has started affecting the revenue
share of provinces, resulting in a significant reduction in transfers during the first six months of
the current fiscal year,” he added.

According to Dr. Bengali, whenever FBR comes under pressure to give a boost to the revenue
collection, it starts resorting to “the old tactic of burdening the lower and middle class
41
Onslaught of SROs continues, Business Recorder, October 11, 2013
42
Pakistan: Enigma of Taxation, Dr. Ikramul Haq & Huzaima Bukhari, LAP Lambert Academic Publishing, 2011
43
The Express Tribune, June 15, 2013.
 19

taxpayers.” Dr. Bengali claimed that lower revenue collection, as was the case last year, would
jeopardise the federal and provincial budgetary frameworks. “Owing to the FBR’s inability to
collect projected revenues, provincial budgets run into deficits that contribute to further
widening of the national budget shortfall,” he added. Substantiating his claim, Dr. Bengali said
that “besides the adverse implications of political appointments on top FBR positions, the
following tax breaks affected the collections:

1. withdrawal of the biggest new revenue spinner – 1% withholding tax on manufacturing –

resulting in a revenue loss of Rs. 18 billion.
2. drastic cut of federal excise duty on sugar to 0.5% aimed at benefiting the influential
sugar industry owners, causing loss of Rs. 8 billion to the national exchequer.
3. 50% cut of sales tax for steel melters causing revenue loss of nearly Rs. 4 billion.
Dr. Bengali demanded that “all SROs affecting the revenue share of provinces should be
approved by the Council of Common Interests (CCI)—the Constitutional body headed by the
prime minister with all chief ministers as its members.” The demand of Dr. Bengali is judicious.
Total loss of revenue through SROs issued during the last few years is estimated at about Rs.
1,200 billion—unprecedented concessions to the rich made the State poorer and the masses
indebted enormously. A very important constitutional provision has escaped everybody’s
attention. Article 162 of the Constitution debars even the National Assembly to grant tax
exemptions or concessions without prior approval of the President. The power to issue SROs
delegated to the federal government by the Parliament is blatant violation of supreme law of
the land.

The principle of “no taxation without representation” embodied in Article 77 read with
Article 162 of the Constitution, is perpetually and flagrantly violated—a lamentable act
that remains unnoticed at all levels. The prime responsibility lies with Parliament that
has delegated legislative power of levying taxes to the federal government (through
FBR).

The delegated power to an executive authority to issue SROs is in utter violation of Article 162
as parliament itself is not authorised to consider any bill or amendment that imposes or varies a
tax or duty, the whole or part of the net proceeds whereof is assigned to any province, unless
the same is first approved by the President. Exercise of delegated powers by FBR to vary a tax or
duty through SRO is a blatant violation of Article 162 which has never been challenged and even
no suo moto action has been taken by the apex court to interpret and enforce the Constitution.

Dr. Bengali has rightly highlighted the malady but has not suggested the right remedy i.e. taking
the matter to Council of Common Interests (CCI) referred to under article 153 of the
Constitution. The requirement of the Constitution vide article 162 is withdrawal of all those
 20

provisions that delegate powers to the executive to issue SROs. Tax administrators should be
given powers to enforce tax laws and not to vary or modify them to negate the principles
enshrined in Article 77 and 162 of the Constitution.

Tax laws should be framed and enacted through a constitutional process and their
proper enforcement is to be ensured by tax administration. All segments of the society
should adhere to the rule that nobody is above law. In Pakistan, tax laws are meant only
to fleece the poor for the luxuries of the rich. The privileged classes pay no taxes on
their colossal incomes and wealth but the poor are subjected to all kinds of oppressive
taxes. Adding insult to injury, they get nothing in return—even deprived of protection to
their lives and property, what to speak of basic facilities of health, education, transport
and housing.

8. Estimates of SROs’ impact on institutional quality

and economic growth: Direct (tax forgone) and indirect
(discrimination among taxpayers, eroding institutional
quality, creating perverse incentives, vicious cycles)—
See chapter by Mr. Sultan Mehmood—Annex A
 21

9. Exemptions/concessions making the rich richer and

the poor, poorer. How have tax exemptions/concessions
contributed to rise of poverty in Pakistan
Available data and studies44 confirm that rich-poor divide in Pakistan is increasing alarmingly.
According to conservative estimates, 70% of population is poor in three broad categories,
namely, ‘transitory poor’, ‘chronic poor’ and ‘extremely poor.’ The ‘transitory poor’ is defined as
those people who live below the poverty line for most of the time during a stated period, but
not always. Chronic and extremely poor are those households that are always below the
poverty line, all the time during a defined period. Similarly, on the other side, 11% and 19% of
total non-poor (above the poverty line) have been classified as ‘transitory vulnerable’ and
‘transitory non-poor,’ respectively. This portrays an alarming situation—more and more people
are moving from transitory category to chronic category, courtesy regressive taxation,
inequitable distribution of income and wealth, monopoly over assets by a few and wasteful
expenditure by the government.

The single most devastating factor for increased income and wealth inequalities remains the
regressive tax system in Pakistan. “Incidence of tax on the poor during the last 20 years has
increased substantively (35%) while the rich are paying no tax on their colossal income and
wealth—for them tax burden has decreased by 18% for the same period. Since Zia's take-over
on July 5, 1977, regressive taxes have gradually been replacing progressive ones—the real brunt
came in 1991 when presumptive taxes were introduced and the rich got cover of laws like
Protection of Economic Reforms Act, 1992. This eroded the tax base as in the garb of protection
to foreign currency accounts, for which no question could be asked, the rich and mighty
decriminalized their untaxed money. The final nail in the coffin of progressive taxation came
during Musharraf-Shaukat era when wealth taxation was abolished and personal income tax
rates were slashed for higher income earners”45.

The rich-poor divide in Pakistan amongst many other factors has its roots in the regressive
taxation but unfortunately, no systematic or comprehensive study has been conducted to
determine comprehensively all dimensions of the rich-poor divide vis-à-vis impact of regressive
taxation.

44
Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household Survey by G. M. Arif and
Faiz Bilquees, The Pakistan Development Review, Summer 2007, pp. 111–127
45
Poverty figures, Business Recorder, 21 October 2011
 22

A study conducted by Talat Anwar 46 provides estimates of various inequality indices in Pakistan
wherein the Lorenz Curve and Gini Coefficients have been most commonly used. According to
Talat, studies on income inequality in Pakistan show different estimates arising due to the
following five important factors. Firstly, different studies use different data sets, some based on
Household Income and Expenditure Surveys, others that make use of income tax data, and
some other studies splice the two sets of data. Second, while some studies consider inequalities
in income, others consider inequalities in the consumption expenditures. Third, while some
studies are done for Pakistan as a whole, others examine income inequalities in both the rural
and urban areas. Fourth, some studies report income inequalities across households; others
report inequalities across population or earners. Fifth, some researchers classify data by deciles
prior to estimation of Gini-coefficient; others employ income intervals that are not uniform. This
study confirms that income inequality in 2000-2007 had been the maximum compared to any
time period in the history of Pakistan. The poorest 30% lost their share while the richest 20%
gained in both the urban and rural areas.

Perils of presumptive tax regime

Since 1991, there has been a shift from equitable taxes to highly inequitable taxes. The equity
principle is satisfied when the overall classification of individuals into categories is reasonable
and broad enough to contain many individuals within each category and there is equal
treatment within each category. This has been ignored in the prevailing tax system. A
commercial importer having turnover of Rs. 10 million is paying the same rate of tax as a very
rich person in the same category having import of Rs. 500 million. In their case, income tax
withheld at source at the rate of 6% is full and final discharge of income—presumptive tax
regime. They pass on this burden to the consumer and virtually pay no income tax. This shows
how the tax system is favouring the rich and putting undue tax burden on the poor.

The Chairman Federal Board of Revenue before a hearing conducted by Senate Standing
Committee on Finance & Revenue on May 13, 2014 admitted that Rs. 500 billion were lost

46
Role of Growth and Inequality in Explaining Changes in Poverty in Pakistan by Talat Anwar, The Pakistan
Development Review, 2010, vol. 49, issue 1, pages 1-17. This study also notes that good policies without good
governance would not benefit the poor. For example, in Pakistan the periods of highest levels of resource
allocations did not result in improvement in social indicators underlining the fact that spending money without
addressing the underlying structural causes of poverty would not reduce poverty. This was not a Pakistan specific
problem it was common to most South Asian countries. The issues of governance that needed immediate attention
included not only the design of policies and structures of governance but also a clear understanding of issues of
resource allocation versus resource utilisation. Transparency of public sector expenditure and accountability in
resource allocation therefore was of foremost importance. Political accountability was also essential to eradicate
bad governance practices. Secondly, regressive tax structures followed by poorly constructed subsidies made for an
inefficient system. There is a need for correct and efficient targeting of subsidies. Poor governance structures
exacerbated leakages and missed targets, completely sidelining the poor even from accidental benefits.
 23

annually by way of tax waivers 47. It is obvious that if these were collected with colossal funds
spent on privileges and benefits of the powerful sections of society diverted towards public
welfare, the present fiscal mess could have been avoided.

Taxation issue, especially improving tax-to-GDP ratio which is the oft-stressed agenda of donors,
should thus not be viewed in isolation. It must be analysed from the social justice point of view
as well. State needs to end inequalities and ensure fair and equitable allocation of resources as
part of Tax Justice Agenda. It is an irrefutable fact that that many Pakistanis are dying of hunger
and poor health, but huge amounts are spent on security, personal comforts, lunches, dinners
and foreign visits of President, Prime Minister, Governors, Chief Ministers, ministers, state
ministers and high-ranking civil-military officials.

Unfair tax system like the one prevailing in Pakistan and many other developing countries,
promote inequalities. Wealthy individuals escape taxes, and burden is shifted to ordinary
citizens through taxes on labour and consumption. As a result, wealth and power are being
increasingly concentrated in the hands of one per cent of the population. The vast majority is
helplessly witnessing its human rights, like right to food, housing, education or health being
seriously undermined. Income inequalities in Pakistan have increased sharply since 1990 and
the trend continues unabated. The main factors that govern personal income distribution
include: distribution of assets; functional income distribution; transfers from other households,
government and rest of the world; and tax/expenditure structure of the government while the
single most devastating factor for increased income and wealth inequalities remains the
regressive tax system. Study of Pakistan from this political economy perspective is very crucial as
society is fast moving towards dehumanizing characteristics. Pakistan is facing economic
disparities, starvation, and scarcity of essential commodities, non-affordability of eatables,
power shortages and lack of essential social services. The Great Divide in today’s Pakistan
between the rich and the poor is assuming alarming proportions and one of the main factors for
this is extending tax benefits to the rich and mighty and that too in an unconstitutional manner
—by issuance of statutory regulatory orders (SROs). Annexure B enlists major tax concessions
and exemptions available in various tax codes.

10. Conclusions–(a) Unjust tax system

It is an admitted position that despite resorting to exorbitant indirect taxes and numerous
withholding tax provisions, FBR has failed to improve the tax-GDP ratio—in fact it has worsened
dipping to 8.2% in 2013-14 from 8.5% in 2012-13 and from 9.5% in 2011-12. In 1991, Pakistan’s
fiscal deficit was merely Rs. 80 billion. It increased to 6.3% in 2013-14. Pakistan could have easily
bridged this gap by abolishing pro-rich exemptions and concessions, rationalisation of taxes and

47
Unrealistic Tax Targets, Express Tribune, May 14, 2014
 24

countering massive tax evasion and avoidance. The real tax potential of Pakistan is not less than
Rs. 6 trillion—Annex E.

Taxation in Pakistan is highly unjust. Bulk of government expenditure is meant for powerful
classes as aptly observed by Dr. Nadeem Ul Haque, former Chairman Planning Commission:
“Bureaucrats enjoy subsidized golf courses and clubs, ministers claim subsidies even for their
country manors, VIP trips and expensive health related foreign expenditures, massive public
sector fund raising by all, where do you see redistribution…..taxation without reform of
expenditures that catches these subsidies that are well hidden will lead to no redistribution,
instead it is like giving the Sheriff of Nottingham more for his personal pleasure. Besides they
already tax us. Our estimate of the foregone asset creation from the land that the bureaucrats
have "appropriated" in Islamabad is about 6 trillion (30% of GDP). That represents a flow of
about 600 billion. That is about 3% of GDP. Surely that is implicit taxation. Is it not? Use this
calculation for the rest of Pakistan, we are already at more than 20%. Are we not? And it
redistributes only in favor of the rich”48.

FBR remains busy with shifting tax burden on the common people and protecting interests of
the rich through frequent amnesty schemes. They portray common citizens as tax avoiders
although anybody having a mobile phone is paying 15% as income tax on each recharge or
amount of bill for postpaid connection. The real fault lies with the rich that do not pay taxes
according to their ability and for whom FBR has crafted presumptive and minimum tax regimes
as well as tax exemptions, amnesties and immunities so that they can not only pass on their
burden of taxes to the end users but also get their ill-gotten money whitened.
In 2004, FBR promised 0.2% per annum growth in the tax-to-GDP ratio for the next five years
while submitting 'tax projections' and 'revenue-to-GDP ratio' to the International Monetary
Fund (IMF) on the conclusion of 9th review by the Fund under the Poverty Reduction Growth
Facility (PRGF). FBR informed IMF that it would increase tax-to-GDP ratio from 9.2% to 10.3% in
2008-09. But in 2008-2009 instead of improvement there was a decline of 2%.

The existing regressive and unfair tax system is rapidly widening the existing divide between the
rich and poor. The main stress on regressive indirect taxes [even under the garb of direct
taxation through presumptive tax regime on goods and services] without evaluating its impact
on the economy and lives of poor masses is the real issue. Equity demands higher taxes from
those who have higher income and wealth, but in Pakistan since 1977, all fiscal policies have
decreased tax burden on the rich and increased its incidence on the poor.

Pakistan can easily generate taxes of Rs. 12 trillion at both federal and provincial levels if above
measures are taken49. This would help the State to meet current expenses and earmark

48
The unenlightened elite by Nadeem Ul Haque, Daily Times, April 24, 2009
49
Fiscal Management & Accountability by Dr. Ikramul Haq, PILDAT, 2014
 25

substantial funds for development and special programmes for the poor and needy—Annex E.
The dire need in today’s Pakistan is to reduce inequalities through a policy of redistribution of
income and wealth. Higher rates of income taxes, capital transfer taxes and wealth taxes are
some means that can be adopted for achieving these ends as is the position in exemplary
democratic countries.

In Pakistan there has been a gradual shift from equitable taxes to highly inequitable taxes. The
shift from removing inequalities through taxes to presumptive and easily collectable taxes has
destroyed the fundamental principle of horizontal and vertical equity. The equity principle can
be held to be satisfied when the overall classification of individuals into categories is reasonable
and broad enough to contain many individuals within each category and there is equal
treatment within each category. In other words, there is level playing field for all.

For achieving the cherished goal of establishing an egalitarian State and self-reliant economy,
proper taxation of the privileged classes is the need of the hour. They are not paying income tax
due from them and have amassed enormous wealth—many of them are beneficiaries of huge
loan write-offs as well50.

(b) Misuse and abuse of powers

FBR like previous years showed inability to collect target of Rs. 2475 billion for 2013-14 fixed in
the budget. It was first reduced to Rs. 2345 billion, then to Rs. 2275 billion. According to still
unconfirmed figures, FBR collected Rs. 2066 billion. FBR has admitted that it could not tax 3.8
million tax evaders despite claiming before the Parliament that their data was available 51.
Instead of taking action against them and on the instructions of the Prime Minister, FBR gave
exemptions, concessions and amnesties to tax evaders and received only Rs. 88.7 million.

Continuous failure of FBR in meeting even the lowest possible revised targets during the last
many years must be seen in the background of policy of appeasement of successive
governments—civil and military alike—towards tax evaders. Tax Directory 52, published by FBR,
testifies to this effect as only 840,000 filed tax returns out of 3.6 million holders of National Tax
Number (NTN), despite generous tax amnesty made available vide SRO 1065(I)/2013 in the
wake of Prime Minister's Tax Incentive Package (sic).

The Chairman FBR and his team in November 2013 made it clear that extraordinary concessions
and amnesties, announced by the present and earlier governments had dampened their efforts
to meet targets. The Finance Minister, however, concealed this fact and told the head of

50
Loan write-offs & tax evasion, The News, October 1, 2010
51
Millions of Pakistanis are outside tax net: FBR chief, Business Recorder September 10, 2014
52
http://download1.fbr.gov.pk/Docs/AllTaxpayersDirectory2013-2.pdf
 26

International Monetary Fund (IMF) team, Jeffery Franks, "I am happy about the performance of
FBR."53 The government earlier made a promise with IMF that it would not issue any new SRO.
During talks with IMF team, Mr. Ishaq Dar did not reveal that enormous tax exemptions and
concessions, given under various new SROs, had further eroded Pakistan's tax base. He did not
justify how less than 15,000 individuals filed tax returns showing tax liability of more than one
million in a country of 180 million inhabitants, where 500,000 ultra-rich alone must have paid
income tax of over Rs 200 billion, if not more.

Mr. Ishaq Dar did not tell IMF’s mission head that by personally announcing unprecedented tax
concessions for his supporters, the influential businessmen, on November 27, 2013, later
implemented through statutory regulatory orders (SROs), Premier Nawaz Sharif reconfirmed the
track record of Muslim League (Nawaz) of appeasing tax cheats. In the wake of "Tax Relief
Package” unveiled by Prime Minister, Dar announced that "25 out of 26 demands of traders
have been accepted by the government during its short tenure" 54—see its results in Table B
where indictors show failure of FBR on all fronts.

The concessions announced by Prime Minister further eroded the already fragile ability of FBR
to enforce tax obligations. It certainly rendered the tax target of Rs 2475 billion fixed in the
budget 2013-14 meaningless, which later reduced to Rs 2345 billion and finally to Rs. 2275
billion, yet FBR managed to collect only Rs. 2266 billion.

Soon after announcement of Tax Relief Package, experts had opined that it would not succeed
as people enjoyed much cheaper solution under section 111(4) of the Income Tax Ordinance,
which they had been availing with the connivance of unscrupulous advisers and money
exchange dealers. It is not understandable what is preventing the parliament to delete this
obnoxious provision of law. Section 111(4) of the Income Tax Ordinance, 2001, provides a free
hand to people to whiten their untaxed incomes and undisclosed assets. This despicable
provision of law guarantees unscrupulous elements complete protection regarding their ill-
gotten, un-taxed money. It says that “no question can be asked by the tax authorities if any
person gets money from outside through banking channels and surrender the foreign currency
to the State and get Pakistani rupees as encashment.” The modus operandi is simple: any tax
evader can go to a money exchange dealer and who, for small premium arranges remittance for
him. In the presence of this provision income tax law has become redundant. Many experts
have been highlighting the disastrous ill-effects of this law since it was introduced by General
Ziaul Haq in 1979 but no government thereafter has shown any inclination to withdraw it.

Prime Minister Nawaz Sharif personally announced what he called "a package for promoting tax
culture, investment in industry and the incentive package for revival of economy." The scheme
53
Ruling elite is letting down FBR, Business Recorder, May 9, 2014
54
Ruling elite is letting down FBR, Business Recorder, May 9, 2014
 27

that expired on April 30, 2014 included immunity from audit, default surcharge and penalty for
NTN holders who had not filed some or all income tax returns in the last five years "provided
they file their missing income tax returns and pay a minimum of Rs 20,000 tax per year." Similar
immunity from audit, default surcharge and penalty was extended to non-NTN holders having
taxable income, provided they paid tax at a minimum of Rs 25,000 per year, and filed returns for
the last five years. Such return filers were also assured of immunity from audit for equal number
of subsequent tax years for which they would file returns for past years. Even the two months'
extension in the schemes failed to achieve any of the objectives announced by the Prime
Minister.

Audit of thousands of cases after announcement of Prime Minister's Relief Package, was
suspended to save known tax dodgers. This was done despite giving commitment to the IMF
that no further tax concessions would be given, especially through SROs. The Finance Minister
firing from behind used the infamous tool of SROs to nullify all measures for documentation of
economy announced in the budget 2013-14. The law passed by the Parliament requiring banks
to share transactions exceeding one million was suspended in the case of existing taxpayers
through SRO 115(1)/2014 dated 19-2-2014 allowing them to keep on evading taxes by just
paying small amounts. Even in the case of persons not filing tax returns, no information has
been obtained from banks till today.

The spokesperson of FBR speaking at a public function a day after announcement of 'Tax Relief
Package' by Prime Minister was quoted to have admitted that "all the SROs issued by FBR in the
last five months were on the demand of the business community." He said that "FBR is fed up
with issuing SROs and is ready to surrender this power to parliament" 55.

Thousands of cases selected for audited for tax year 2013 through random computer ballot
could have helped FBR to achieve the tax collection target of Rs 2475 billion but Prime
Minister's package jeopardised it. FBR thus failed to meet revised target of Rs 2345 billion and
as usual resorted to negative tactics to show higher figures—growth of 15% is a myth as bona
fide refunds of over Rs.100 billion were withheld and advances, though not yet due, were
received from large taxpayers. The Senate Standing Committee on Finance and Revenue also
took serious note of this malpractice. The Chairman FBR admitted before the Senate Committee
that refunds of Rs 97 billion were outstanding. The Senate Committee disbelieved his claim and
expressed the apprehension that the figure might be around 450 billion 56.

55
Ruling elite is letting down FBR, Business Recorder, May 9, 2014
56
FBR: Blame game continues, Business Recorder, May 16, 2014. Refunds represent amounts payable to the
taxpayers as a result of excess money received from them either as advance or due to excessive assessments later
disapproved by appellate authorities.
 28

The amnesty scheme of Prime Minister has received extremely cold response even from his
ardent supporters, traders and industrialists. It is shocking that only 3,395 persons have availed
this scheme paying a paltry amount of Rs. 87.7 million.

Surrendering to influential lobbies after announcing the budget is one of the reasons behind
shortfall in revenues, according to FBR officials. Since assuming power in June last year, the
federal government accepted 26 demands of the business community, as admitted by Dar, in
the presence of Prime Minister Nawaz Sharif. These concessions, mainly relaxing documentation
clauses, have worked against the principles of taxation, according to sources. The Chairman of
FBR is on record admitting that because of exemption and concessions given through SROs
almost two-thirds of imports are duty free. If only such SROs, which are nothing but favours to
certain business houses, are revoked, the collection of FBR can easily be doubled. If leakages
like under-invoicing, flying-invoices, fake refunds etc are effectively countered, FBR can easily
triple its revenues.

The conduct of elites is simply shocking says Dr. Ishrat Husain in his book, ‘Pakistan: The
Economy of an Elitist State.’ He has observed that in sharp contrast to the East Asian model of
‘shared growth’, based on rapid economic development coupled with a rapid reduction in
poverty and more equitable distribution of the benefits of development in Pakistan, the elitist
model confers political and economic powers to a small coterie of elite (parasites).

The problem of Pakistan is not scarcity of resources, but incompetence to tap the same, lack of
equity in imposing taxes and absence of effective tax justice system. Without levying any new
tax or raising the rates of the existing ones, the total revenue collection of Pakistan can be Rs
8500 billion (Rs 5000 billion direct taxes and Rs 3500 billion indirect taxes) if existing tax gap is
bridged57. This level of collection is possible but as a first step all perks and perquisites would
have to be monetized in the case of judges, generals and civil bureaucrats who should pay tax
on fairly-determined ‘Consolidated Pay Package’ as others are doing. For them, Consolidated
Pay Packages according to market wages would reduce corruption, remove sense of elitism and
improve governance. For politicians and judges, an independent and effective accountability
organ is necessary58. Without these reforms and ‘municipal self-governance’ Pakistan cannot
hope to achieve rapid growth ensuring job opportunities for millions of young people, whose
frustration is on the rise with every passing day.

The failure to tax the rich and mighty is the core problem of Pakistan. Income Tax Law is full of
exemptions for the powerful and rich segments and same is the position under the Sales Tax Act
and other fiscal codes. Revenue targets are fixed in isolation and without making necessary

57
Finance Bill 2013: Apathy of Parliament, Business Recorder, July 5, 2013
58
Business Recorder, July 19, 2013
 29

efforts to improve productivity and economic growth. Major portion of tax collection is used for
debt servicing and administrative expenses of running the government, and negligible amount
is spent on public services. This scenario has created a dilemma, where the government can
neither afford to give any tax relief package to the trade and industry [due to growing fiscal
deficit] nor can it achieve a satisfactory level of economic growth [due to regressive tax
measures]. This is a vicious circle in which Pakistan is trapped. The government needs to
rationalise the tax system, remove all distortions and anomalies, especially exemptions for the
privileged classes and utilise taxes for the benefit of the public at large. Unless, it is done
Pakistan cannot come out of the prevailing crisis.

CASE STUDY: BENEFITS TO SUGAR INDSTRY

“Following the policy of its predecessor to appease the mighty sugar mafia, the Pakistan Muslim
League Nawaz (PML-N) government did not eliminate the undue tax concession of not charging
standard rate of sales tax from sugar in budget costing Rs 15 billion annually to national kitty in
terms of revenue collection. Sales tax on sugar is just 8.5 percent against the standard rate of 17
percent imposed on all other commodities. The government is facing Rs 15 billion losses annually in
terms of revenue collection. Sources informed The Nation that government had earlier decided to
increase GST from eight to 17 per cent in the budget 2013-14 on sugar, however later the proposal
was dropped apparently due to appease strong sugar mafia of the country. The specific sector of
sugar is enjoying tax relief from last three years, as government in 2009 decreased GST on sugar
when commodity prices had gone beyond Rs 100 per kg level in the country. The commodity price is
still higher (around Rs 60 per kg) in the country despite enjoying 50 per cent GST concession for last
three years indicating that common people are not being facilitated from this concession. Sources
informed The Nation that the Federal Board of Revenue (FBR) is facing loss of Rs 15 billion annually
in terms of revenue collection due to reduction of GST on the commodity. However, to generate
Rs35 billion, the government has increased the standard rate of sales tax from 16 to 17 percent thus
fuelling inflation in the country. The government has set an ambitious revenue collection target of
Rs 2475 billion for the next fiscal year 2013-14, which is 230 per cent higher than the collection
target of Rs 1,952 billion of the outgoing financial year 2011-12.It might be mentioned here that
government would generate Rs 202 billion with new taxation measures, including Rs 167 billion
taxation on masses and Rs 35 billion through administrative reforms, in the next fiscal year”— The
Nation, June 15, 2013.

After publishing a directory of all tax return filers for tax year 2013, FBR has not taken any action
against tax defaulters comprising wealthy property owners, affluent lawyers, doctors and other
professionals, politicians, businessmen, judges, generals, high-ranking officials and their
dependents who own assets worth billions of rupees but either do not file tax returns or cannot
justify luxurious life and accumulation of wealth from incomes they have declared.
 30

The State has failed to provide security of life and property to citizens what to speak of
education, health, transport and housing. It violates Article 3 of the supreme law of the
land “…from each according to his ability and to each according to his work.” The result
is exploitation of the poor, economic injustice, social chaos and mayhem—all worsening
with each passing day.

At present, the economy is faced with a dilemma, where it can neither afford to give any
meaningful tax relief package to the common man, trade and industry [due to huge fiscal
deficit] nor can it achieve a satisfactory level of economic growth [due to retrogressive tax
measures]. This is a vicious circle that needs to be broken. We must tax the rich, drastically
reduce non-productive expenses, go for rapid industrialization and improve productivity. These
steps will ultimately result in more resource generation and through equitable taxation the
fruits of economic growth would be enjoyed by all.

Sufferings of Pakistani poor and less privileged classes will not end unless tax system which
presently serves these classes is reformed radically and made equitable. How the rich and
mighty are thriving on the taxpayers’ money and exploiting foreign funding is aptly elaborated
by Mr. Nasir Khilji, Senior Economist at U.S. Department of the Treasury, while commenting on
an article ‘Politics of plots and perks’, Business Recorder, July 12, 2013 as under:

“It doesn't end there with these bureaucrats et al. They are even ripping off the American education
system and the tax payer. Let me explain. Most of them when starting out in their careers and along
the way got USAID and other agency scholarships to attend elite universities in the States. Some of
them just came on contrived tours at the right time before delivery. I met several of them and
couldn't stand their elitist views and sense of entitlement. They actually believed that they deserved
these scholarships and junkets. While here they had children who automatically became US citizens.
Then these guys went back with their families to lord over poor Pakistan and their children went to
the finest schools there like Aitchison, Beacon House etc and lived in the public estates you talk
about. After high school the US born children applied to the finest universities in the US like Harvard,
Columbia, Penn, etc. Generally these universities in coordination with the US Department of
Education have financial assistance programs that make sure that not so well-off American and
resident students who are admitted can afford their exorbitant cost through government and
university grants and tuition assistance programs. Now the real fun begins. These children of
Pakistani bureaucrats etc fill out financial aid applications and only provide information about their
parents' nominal salaries in Rupees and not the full monetized value about the other perks,
privileges, and plots their parents have. Without fail they are given free rides in American
universities because of the apparently extremely low income households they come from. After
graduation they stay here and easily get jobs because they are Americans thus providing a
comfortable beach head for their 'poor' parents. Their authentic American peers and their parents
are straddled with student loans of as much as $150k after a 4 year BA while these scions of the
bureaucrats and elites of Pakistan enter the American labor force with at most $20k in loans (well
the US Department of Education and universities are generous to poor students but not
stooges....they realize that all students after graduation will work and can pay back, therefore they
force them to take some loans.). Here is another reason for monetizing salaries in the Pakistani
 31

government work force. So that they do not spread the lie internationally about the pittance of
salaries they receive”.

Rule of law in the context of tax requires that taxation must include not just safety of the
individual against unlawful actions of fiscal authorities, but also assurance of the loyal taxpayer
that he is not abused and taken for a ride, while clever evaders get away with tax
avoidance/amnesty schemes. No government can survive long unless it works under strict
norms and moral values. Pakistan will never achieve stability if its political, legal and fiscal
institutions remain threatened by those having money power. These basic institutions and the
associated value structures should be properly safeguarded, as these are in fact, public capital
and the social infrastructure of liberal democratic society. If the political leadership wants to
protect the vital interests of Pakistan, it must pave the way for design and reform of democratic
institutions, standards, norms and moral values without which instability will deepen.

Excess Profit Tax: solution against cartelization

The governments have been using higher taxes on petroleum products as means to reduce its fiscal deficit, without
realizing that price hikes in these items affect economy as a whole and poor masses especially, retard growth in all
sectors besides accelerating inflation. The government must go for equity in the tax system. On the extraordinary
profits of oil companies and other cartels, excess profit tax should be levied. The successive governments have
failed to introduce excess profit tax which was once enforceable in Pakistan but was later on abolished like all other
progressive taxes. The charging section of repealed Excess Profit Tax of 1940 reads as under:

“Subject to the provisions of this Act, there shall, in respect of any business to which this Act applies, be charged,
levied and paid on the amount by which the profits during any chargeable accounting period exceed the
standard profits a tax (in this Act referred to as “excess profits tax”) which shall, in respect of any chargeable
accounting period ending on or before the 31st day of March, 1941, be equal to fifty per cent of that excess and
shall, in respect of any chargeable accounting period beginning after that date, be equal to such percentage of
that excess as may be fixed by the annual Finance Act”.

Another noteworthy feature in the price is petroleum levy [of late the word “development” is omitted]
but no government has mentioned how this amount has ever been used towards serving this purpose. If
it was collected just to meet subsidy then it was a total waste. These funds should have been utilised to
improve the quality of POL products in order to curtail pollution, provide public transportation and to cut
down the oil import bill. Had funds collected from this source gone into developing mass transit systems
in the major cities of the country, there would be no doubt that reliance on petroleum products could
have been manifestly reduced.

The solution lies in removing all tax exemptions and benefits and monetizing benefits and
perquisites. FBR first of all should recover lost tax from delinquent elected members and mighty
civil and military officers who are beneficiaries of State lands and free benefits. Recouping lost
revenue of billions of rupees from them and beneficiaries of loan write-offs will certainly convey
a loud message to all that FBR means business and nobody is above law. As the mighty sections
 32

of society are not paying taxes due from them, the common people rightly argue against
discharging their tax obligations, especially when the State has failed to protect their lives and
properties, what to talk of providing basic facilities of health, education, housing and
transportation. This reality needs to be recognised by all and corrective steps should be taken to
convince people by action that money paid by them as taxes is vital for their own and state’s
survival as well as progress of the entire nation. It may appear a cliché but no other solution is
possible.
Undoubtedly, the prevalent tax policies are detrimental for economy, social justice, business and
industry. Those who possess more economic power (income and wealth) should contribute
more to the public exchequer and vice versa. It is tragic that in a country where the wealthy and
the mighty have invested billions outside Pakistan in banks 59 and invested in real estate, the
government is going from pillar to post with a begging bowl to meet international commitments
of paying debt service charges. They have enormous untaxed money lying abroad while
country’s tax-to-GDP ratio is pathetically low at 8%.

(c) Quantum of money foregone could have been

utilised for providing better health, educational and
other social needs
Statutory Regulatory Orders are tax exemptions given to various sectors of the economy. These
are a form of tax expenditures, defined by Atshuler and Dietz (2008) 60 as “revenue losses
attributed to tax laws which provide for a special exclusion, exemption, deduction, tax credit,
preferential rate of tax or a deferral of tax liability.” According to a study 61 done by Hafiz A. Pasha
and Aisha Ghaus, total tax expenditure (SROs) are about Rs.560 billion. This is a substantial
amount, contributing to around 30-40% of fiscal deficit each year—for official figures and other
estimates see Annex E.

The following 62question was posed in the National Assembly on March 26, 2014:

59
The Finance Minister made this statement in National Assembly, for details; see Government mulls bringing back
illegal money from Swiss banks, The News, May 9, 2014
60
Tax Expenditure Estimation and Reporting: A Critical Review, Rutgers University, New Brunswick/Piscataway,
Department of Economics; http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1248924
61
The Future Path of Tax Reforms in Pakistan, Hafiz A. Pasha and Aisha Ghaus Pasha;
http://lahoreschoolofeconomics.blogspot.com/2013/12/the-future-path-of-tax-reforms-in.html
62
http://www.na.gov.pk/uploads/documents/questions/1395824189_814.pdf
 33

Question 57 by Mr. Lal Chand: Will the Minister for Finance, Revenue, Economic Affairs,
Statistics and Privatization be pleased to state the total amount of tax exemptions given under
SROs during current financial year 2013-14?

Answer: Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization (Mr.
Muhammad Ishaq Dar): The total amount of all duties and taxes exempted under various SROs
during current fiscal year i.e. (July-February 2013-14) are Rs. 320.86 billion. It is important to
highlight that these exemptions are on account of all SROs issued from time to time which are
operational till date and not related only to those, issued during the current financial year. On
the same day, Member Tax Policy of FBR and its official spokesman, while speaking at pre-
budget session held by Institute of Chartered Accountants of Pakistan in Karachi on March 27,
2014, conceded that “tax exemptions have done nothing but caused a colossal revenue loss,
hence, FBR is planning to withdraw all tax exemptions, granted to specific sectors and
individuals, shortly. Withdrawal of tax exemption, only from crude oil sector, would create a
revenue impact of around Rs 1 billion to the national kitty. He further revealed that according to
the findings of a study conducted by FBR “aggregate tax expenditure being the cost of
exemptions, concessions and erosion of the tax base in the federal tax system during the last
five years (2008-13) was not less than Rs. 750 billion 63”.

For various estimates regarding quantum of revenue loss due to exemption, concessions and
reductions that could have been utilised to provide education, health and other social services
to the people, please see Annex E. It is official position that average annual loss in not less than
Rs. 500 billion—a huge sum that could have been utilised to improve education and health
facilities in the country.

(d) Recommendations
Pakistan can collect Rs. 6 trillion (see Annex E) at federal level alone to eliminate fiscal deficit.
If 5 million individuals having annual taxable income of Rs 1.5 million file returns, total income
tax collection from them at the prevalent tax rates would come to Rs. 1,650 billion. If income
tax collected from corporate bodies, other non-individual taxpayers and individuals having
income between Rs. 400,000 to Rs. 1,000,000 is added, the gross figure would not be less
than Rs. 3,500 billion. FBR collected only Rs. 850 billion as income tax in the fiscal year 2013-
2014. Similarly, due to leakages in sales tax, federal excise and custom duties, the total
collection is not more than 50% of actual potential. In fiscal year 2013-14, FBR collected
around Rs. 1,400 billion under the head sales tax, federal excise and custom duties, which is
very low. It should have been at least Rs 2,500 billion. If prevalent tax gap of billions is
bridged, the total revenue collection cannot be less than Rs. 6,000 billion without imposing
any new taxes or raising existing tax rates, which have been suggested in the Finance Act

63
Statement reported in daily The News, March 26, 2014
 34

201464. Collection of taxes to the extent of Rs. 6 trillion can not only eliminate fiscal deficit but
also help in retiring expensive internal and external loans. However, this level of collection is
not possible unless all avenues of revenue leakages are plugged that include exemptions
granted through SROs or otherwise.

The following measures at federal and provincial levels can increase the tax-to-GDP ratio from
the present 8 percent to 16 percent, over the next two to three years:
 Bridging of tax gap through effective enforcement & voluntary compliance
 Withdrawal of all concessionary Statutory Regulatory Orders (SROs)
 Substantial property tax on the rich
 Presumptive agricultural income tax of Rs.5,000 per acre on irrigated agricultural
holdings above 25 acres and Rs. 2,000 per acre on un-irrigated holdings above 50 acres
 A capital gains tax on transfer of all moveable and immovable assets.
 Imposition of sales tax on all kinds of services by the provinces
 Taxes should be imposed by Parliament and not through any executive order.
 FBR must be insulated from all kinds of political influences.
 Enforcement of tax laws without any fear or favour should be the first and top most
priority of the government
 Voluntary tax compliance should be improved through a strong deterrent system where
the compliant taxpayers are respected and rewarded, while evaders are exposed and
punished under the law.
 Resource mobilisation should be given priority to build infrastructure, facilitate growth
of small and medium sized firms in the industrial sector and small farms in the
agricultural sector for an employment intensive and equitable economic growth process.
At the same time, large corporations with equity stakes for the poor can be established
through public-private partnerships. This would set the stage for a structural change that
could help achieve economic growth for the people and by the people which is presently
confined to the elites only.

64
Onslaught of SROs continues, Business Recorder, October 11, 2013;
http://www.brecorder.com/pages/article/1240088/2013-10-11/onslaught-of-sros-continues.html
 35

 References:
 Pakistan: The Economy of an Elitist State by Dr. Ishrat Husain, Oxford University Press,
Karachi, 2003
 Pakistan: Enigma of Taxation by Dr. Ikramul Haq & Huzaima Bukhari, LAP Lambert
Academic Publishing, 2011
 Role of Growth and Inequality in Explaining Changes in Poverty in Pakistan by Talat
Anwar, The Pakistan Development Review, 2010, vol. 49, issue 1, pages 1-17
 Fiscal Management & Accountability: Discussion Paper by Dr. Ikramul Haq, published by
PILDAT
 www.pildat.org/.../BP43-TaxonAgricultureIncomeinPakistan.pdf
 How rich are the Pakistani rich? Shahid Javed Burki, Express Tribune, May 16, 2011
 Shahid Kardar, The Curse of SROs, The Dawn, December 25, 2012
 Chronic and Transitory Poverty in Pakistan: Evidence from a Longitudinal Household
Survey by G. M. Arif and Faiz Bilquees, The Pakistan Development Review, Summer
2007, pp. 111–127
 FBR Year Book 2012-13
 FBR Year Book 2011-12
 FBR Year Book 2011-10
 FBR Year Book 2009-10
 FBR Year Book 2008-09
 FBR Year Book 2007-08
 Economic Survey of Pakistan 2013
 Economic Survey of Pakistan 2013
 Economic Survey of Pakistan 2012
 Economic Survey of Pakistan 2011
 Economic Survey of Pakistan 2010
 Economic Survey of Pakistan 2009
 Economic Survey of Pakistan 2008
 Economic Survey of Pakistan 2007
 Economic Survey of Pakistan 2006
 Economic Survey of Pakistan 2005
 Taxation, monthly tax digest
 Pakistan Tax & Company Law (PTCL)
Newspapers:
 Dawn
 Business Recorder
 The News
 The Nation
 New York Times
 The Indian Times
 The Daily Times
 The Express Tribunes
 36

Abbreviations:
(CCI) Council of Common Interests

(EDB) Engineering Development Board

(FBR) Federal Board of Revenue

(IMF) International Monetary Fund

(PRGF) Poverty Reduction Growth Facility

(PTCL) Pakistan Tax & Company Law

(SBP) State Bank of Pakistan

(SROs) Statutory Regulatory Orders

(TARP) Tax Administration Reforms Project

(VAT) Value-Added Tax

 37

About the authors

HUZAIMA BUKHARI, Advocate High Court and Visiting Faculty at Lahore University of
Management Sciences (LUMS), is author of numerous books and articles on Pakistani tax laws.
She is Editor of monthly tax magazine Taxation. She is partner of Huzaima & Ikram, a leading
law firm of Pakistan. From 1984 to 2003 she was associated with Civil Services of Pakistan and
served in Federal Board of Revenue. Since 1987, she has been teaching tax laws at various
institutions including government-run training institutes in Lahore. She specialises in the areas
of international tax laws, corporate and commercial laws. She is review editor for many
publications of Amsterdam-based International Bureau of Fiscal Documentation (IBFD) and
contributes regularly to their journals.

____________

DR. IKRAMUL HAQ, Advocate Supreme Court of Pakistan and International Tax Counsel, heads
Huzaima & Ikram, a leading law firm specialising in tax practice. Dr. Ikram is member Visiting
Faculty of Lahore University of Management Sciences (LUMS) and author of many books that
include Pakistan: Enigma of Taxation, Law & Practice of Income Tax, Law & Practice of Sales Tax,
Law & Practice of Federal Excise, Law & Practice of Sales Tax on Services, Practical Handbook of
Income Tax, Tax Laws of Pakistan, Principles of Income Tax with Glossary, Master Tax Guide,
Income Tax Digest 1886-2013 (with judicial analysis), Commentary on Avoidance of Double
Taxation Agreements signed by Pakistan, Pakistan: From Hash to Heroin and its sequel Pakistan:
Drug-trap to Debt-trap. He served with Federal Board of Revenue from 1984 to 1995. He has 30
years’ experience of local and international tax practice. He has authored more than 1000
articles that have been published in various tax journals in Pakistan and abroad. He is member
of International Fiscal Association (IFA) and country correspondence of International Bureau of
Fiscal Documentation (IBFD). He has written for IBFD chapters on Transfer Pricing and Tax and
Business Laws of Pakistan. He is life member of Supreme Court Bar Association , Pakistan Bar
Council, and Lahore High Court Bar Association.
 38

Annex A

ESTIMATING THE EFFECT OF SRO TAX EXEMPTIONS ON INSTITUTIONAL QUALITY

AND ECONOMIC PERFORMANCE OF PAKISTAN

by SULTAN MEHMOOD
INTRODUCTION

This chapter is concerned with estimating the effect of large SRO tax exemptions on institutional
quality and economic performance of Pakistan. One should note from the outset that the
emphasis here is not on the ‘lost’ revenue rather the focus instead is whether these largely
arbitrary tax exemptions through SROs erodes institutional quality and whether they have an
adverse impact on the economy of Pakistan. Hence, while interpreting the results one should
keep in mind the real negative effect on the economy results not only stems from the ‘lost’
revenue but also due to adverse incentives generated, particularly for rent seeking, nepotism
and cronyism that follows from arbitrary tax exemption regime.

It is estimated that a typical SRO shock follows a cumulative drop of real GDP per capita of
5.28% over the course of 10 years. Although the estimations are statistically significant to 95%
significance level, the limited data availability makes the point estimate inefficient (expanding
the range of possibility of an adverse effect of SRO shocks on the economy): the negative effect
ranges from 1.71% to 8.85% over the course of ten years. This means about 0.171%-0.885% of
real GDP per capita growth is lost every year due to SROs exemptions.

ECONOMIC THEORY

Economic theory is clear that erosion of institutional quality has adverse impact on economic
outcomes. The Nobel Prize winning economist Douglas North (1990) defined institutions as
“humanly devised constraints that structure human interaction” The definition has become the
standard in literature with many seminal studies such as Glaeser et al. (2004) relying on it.
Acemoglu, Johnson and Robinson (2005) document strong empirical evidence (in a quasi-
experimental setting) for institutions being fundamental to long-run economic performance of a
country. Hence, any regime such as the SROs that has adverse impact on institutions is likely to
have large economic costs.


CPB Netherlands Bureau for Economic Policy Analysis PO Box 80510, 2508 GM The Hague, The Netherlands.
Email: S.Mehmood@cpb.nl; Tilburg University, Warandelaan 2, 5037 AB Tilburg, The Netherlands. Contact
s.mehmood@uvt.nl
 39

Piketty (1995) develops a model which shows circumstances in which low taxes and situations in
which high level of taxation will be preferred in the society. The main equations of the model
are represented as follows:

(1)

This simplifies to:

(2)

where is the tax rate, is effort, is the responsiveness of individual effort to individual
achievement and is the pretax income with t and i being the time and agent subscript for
respective parameters.

The interpretation of the above equations is that different people will have heterogeneous
beliefs on the optimal tax rates and that in societies where effort is rewarded, agents will prefer
low taxes and hence taxation generates large distortions. On the other hand, if effort is not
properly appropriated, high taxation will be preferred in the society and taxation generates few
distortions (see Piketty, 1995 for more detail).

However, this model does not take into account the rent seeking incentives that are generated
through excessive taxation, particularly the higher incentives to join politics and expropriate the
higher ‘taxes’. This is dealt in Ades and Verdier (1996) where it is shown that political
mechanism generated through a larger ‘elite’ reduces provision of public goods (education and
infrastructure) and precludes technological growth that in fundamental to economic growth
(also see Bourguignon and Verdier, 2000; Besley and Persson, 2010).
 40

Acemoglu (2010) notes that increasing fiscal capacity is not in itself a “silver bullet policy
recommendation” (p. 119). To show the direct and indirect effects of increase in state fiscal
capacity, he develops a dynamic model of political economy. The basic equation of the model is
presented below:

(3a)

And the equilibrium and corresponding net output is characterized by the following equations:

(3b)

For notional clarification, see Acemoglu (2010). Here we will explain the implications of the
above model. The first implication is the straight-forward direct effect of efficiency generated
from direct fiscal instruments. These instruments can be used for taxation and redistribution
because it will reduce the transfer of resources from entrepreneurs and workers to those who
hold political power. Hence, there is this direct positive effect of increasing fiscal capacity that
limited the amount of resources being transferred (through entry barriers, price manipulation in
addition to outright ‘corruption’) from ‘non-elites’ to ‘elites’.

However, there is a second more subtle (negative) effect of increasing fiscal ‘capacity’ that may
counteract this positive effect. The equations (3b) imply that increased fiscal capacity and more
efficient tax instruments also increases the incentive to hold political power. This is because
better tax instruments increase the possible benefits of holding state power. This gives rise to
the distinct possibility of further deterioration of allocation of resources because of increased
political conflict to gain from the increased fiscal capacity. This implies that if SROs are to be
abolished, it should follow with increased political accountability that will limit this possible
effect of political infighting to gain political power.

Hence, based on this Acemoglu’s model, we did not just estimate the “lost” revenue through
SROs which might not be ‘lost’ in a relative sense because higher revenue gained from abolishing
SRO exemptions could increase political conflict whose hypothetical cost might be higher than the
 41

revenues gained through abolition of SROs. Instead, we focus on the total costs to long-run
institutional quality and its cumulative effect on economic growth in the estimations, which is
non-negligible. Also, we argue for abolition of SROs and simultaneously putting in safeguards that
would prevent the ‘elite’ from ‘gaining’ from the increased tax revenue.
DATA AND TRENDS
The main variables includes real GDP per capita from Penn World Tables 8.0 and World
Development Indicators of the World Bank, measures of institutional quality are obtained from
Polity IV data (Gurr et al., 2014) and SRO data is obtained from Federal Board of Revenue
Pakistan (FBR). See Annex B for a detailed description of SROs.
Figure 1 plots the real GDP per capita data from the two sources in a single time series from
1970 to 2012. Most of the analysis is done by the often used real GDP series from the World
Development Indicators. Given, the dubious quality of national accounts data in developing
countries as part of the robustness check the preferred and baseline estimated equations are
rechecked with the newly constructed output-side real GDP per capita data from the Penn
World Tables (PWT) 8.0 that is hypothesized to be less sensitive to measurement issues. It is
seen both series are highly correlated (correlation coefficient is around 0.8). Moreover, from the
graph it becomes clear that Pakistan has not been on a stable growth path over the past four
decades. There are major recessions (defined as negative GDP per capita growth) in each of the
four decades with two recessions in the 1990s.

Real GDP per capita growth over time

R GD P per capita growth (annual % )
0 -5 5 10

1970 1980 1990 2000 2010

Year
Real GDP per capita growth PWT 8.0
Real GDP per capita growth WDI, WB

Figure 1: Real GDP per capita growth over time.

 42

The polity IV measures of quality of institutions are plotted during the time period of 1973 to
2012. This measure captures regime authority continuum on a 21 point scale from -10 being
completely autocratic to +10 being a consolidated democracy. This measure is useful because it
envisions a spectrum of governing authority that spans from fully institutionalized autocracies,
mixed, incoherent authority regimes to fully institutionalized authorities instead of a binary
approach to institutions (Gurr et al., 2014). The composite index (black line, Figure 2) consists of
weighted average of components that record key institutional qualities such as executive
recruitment, constraints on the executive and political competition. We see particularly larger
fluctuations for the composite Policy IV measure particularly due to various military takeovers (a
fall in 1999 is a case in point). Additionally, we note that the more ‘fundamental’ measure of
institutions (Glaeser et al., 2004): the constraints to the executive display smaller variation and
has barely increased over the past decade. This persistently limited constraints on executive
power should be a drag on economic growth.

Quality of institutions over time

10
5
0
-5
-10

1970 1980 1990 2000 2010

Year

Executive Constraint Composite Polity IV

Figure 2: Polity IV measures of Institutions over time.

 43

EMPIRICAL METHODOLOGY

In this section, we explain our empirical methodology. The basic econometric methodology
used here was developed by Christopher Sims (who won the Nobel Prize in Economics in 2011
for this work). This is the Vector Autoregression (VAR, henceforth) with Cholesky
decompositions.

The use of VAR and its corresponding Impulse Response Functions (IRFs) can answer question:
given all data from 1973 to 2012 what is the average “causal” effect of SROs on institutional
quality and economic growth? This methodology is useful as under a set of reasonable
conditions we can determine “causal” effects of SRO shocks without too much concern about
omitted variables and reverse causality (Enders, 2010).

The VAR is represented as follows:

(4)

Where, is a lag polynomial equivalent to A1L1 + A2L2 + A3L3 + … + ApLp, while , and C are
n x 1 vectors, with representing a vector of endogenous variables, the vector of disturbance
terms and C the vector of intercept terms, respectively. The polynomial contains the three main
variables: the real GDP per capita, institutional quality variable and Dummy variable for ‘major’ SROs
that take the value of 1 in the year when an above average SRO was granted (and zero otherwise). See
Annex B for a more complete description of each SROs.

From this, we can break down the disturbance term into the covariance matrix and reduced
form errors:

(5)

(6)

where is a 3 x 1 vector of structural shocks, B is a 3 x 3 covariance matrix and is a vector

of reduced form errors. is a typical element in the covariance matrix of i with respect to j.
Equation (4) is not identified because is serially correlated. A model similar to the Structural
VAR as in Bernanke (1986) is estimated which ensures identification under no contemporaneous
adjustment assumption based on plausible restrictions (among all possible restrictions the most
plausible ordering was estimated).

The preferred (Cholesky) restrictions are as follows:

 44

(7)

Under Cholesky decomposition, the restriction of no contemporaneous shown above ensures

identification.

MAIN RESULTS

The results are presented in this section. First, we shock a positive institutional quality shock to
see the impact on real GDP per capita on the Pakistani data. The impulse response function is
plotted in Figure 3. It is seen that a positive aid shock permanently raises GDP per capita though
the positive effect seems non-linear. This is according to theory and in line with much of
literature.

Positive institutional quality shock on real GDP per capita

.02

.015

.01

.005

0 5 10
step
95% CI orthogonalized irf

Figure 3: Impulse response of Institutional quality shock on real GDP per capita
 45

Next, we dig deeper into data and try to ascertain whether arbitrary granting of large SRO tax
exemptions had any adverse impact on institutional quality. Figure 4 presents the results. It is
seen that average SRO shock has a transitory but statistically significant negative effect on
institutional quality although a quick rebound to zero effect is observed.

SRO shock on instituitional quallity

-.1

-.2

-.3

0 5 10
step
95% CI orthogonalized irf

Figure 4: Impulse response of SRO shock on institutional quality

Lastly, Figure 5 presents the results of the similar exercise of impulse of SRO shock on real GDP
per capita. This measures the real effect of SRO on the economy. A prolonged negative effect of
SRO on GDP per capita is observed, although the limited data (SRO data were only available
from 1990) makes the estimates less efficient. Notice that Figure 5 also accompanies a table;
these are the exact impulse response estimates of the plot above. It is documented that a
typical SRO shock follows a cumulative drop of real GDP per capita of 5.28% over the course of
10 years. However, as mentioned before there is large statistical variation with the effect
ranging from 1.71% to 8.85% over the course of ten years. This means about 0.171%-0.885% of
real GDP per capita growth is lost every year due to SROs exemptions. This amounts to an
average annual loss of about US$ 104.28 per person.
 46

Major SRO shocks on real GDP per capita

.01

-.01

-.02
0 5 10
step
95% CI orthogonalized irf

Step OIRF Lower Upper

0 0.006023 0.004197 0.007848
1 0.002146 0.000113 0.004178
2 -0.00096 -0.00342 0.001511
3 -0.0034 -0.00629 -0.00051
4 -0.0053 -0.00854 -0.00206
5 -0.00674 -0.01026 -0.00322
6 -0.00782 -0.01155 -0.00409
7 -0.00859 -0.01248 -0.00471
8 -0.00912 -0.01311 -0.00513
9 -0.00945 -0.0135 -0.00539
10 -0.00961 -0.01368 -0.00554
Total -0.05282 -0.08853 -0.0171

Figure 5: Impulse response of SRO shock on GDP per capita

REFERENCES
 47

Acemoglu, D., Johnson, S., & Robinson, A. R. (2005). Institutions as a fundamental cause of long-
run growth. In P. Aghion & S. N. Durlauf (Eds.), Handbook of economic growth (pp. 385–472).
Amsterdam: North Holland.

Acemoglu, Daron. (2010). "Institutions, Factor Prices, and Taxation: Virtues of Strong States?"
American Economic Review, 100(2): 115-19.

Ades, A., Verdier, T. (1996). “The rise and fall of elites: A theory of economic development and
social polarization in rent-seeking societies”. CEPR Discussion Paper #1495.

Glaeser, E., La Porta, R. Lopez-de-Silanes, F. and Shleifer, A. (2004) Do Institutions Cause

Growth? Journal of Economic Growth 9, pp. 271-303.

Besley, Timothy J., and Torsten Persson. (2010). “State Capacity, Conflict and Development.”
Econometrica, 78, pp. 1-34.

Bourguignon, F., Verdier, T. (2000). “Oligarchy, democracy, inequality and growth”. Journal of
Development Economics 62, 285–313.

Enders, W. (2010) Applied Econometric Time Series. Hoboken, NJ: Wiley. Print.

Federal Board of Revenue (2014) SRO notifications (various issues):

http://www.fbr.gov.pk/SROs.aspx

Gurr, Ted Robert, Monty Marshall, and Keith Jaggers (2014). Polity IV Project: Political Regime
Characteristics and Transitions, 1800-2003. Available online:

http://www.systemicpeace.org/polity/polity4.htm

North, D. (1990). Institutions, Institutional Change, and Economic Performance. Cambridge:

Cambridge University Press.

Piketty, T. (1995). “Social mobility and redistributive politics”. Quarterly Journal of Economics
100, 551–584.

Sims, C., (1980) Macroeconomics and Reality, Econometrica, 48, pp. 1-48.
 48

Annex B

List of major SROs

Sales Tax

S.R.O. 445(I)/2004, dated June 12, 2004.– In exercise of the powers conferred by the proviso to
clause (33) of section 2 of the Sales Tax Act, 1990, the Federal Government is pleased to specify that the
following types of transactions shall not constitute supply, namely:–
(a) forward transactions of commodities at the National Commodity Exchange Limited; and
(b) goods delivered under a Murabaha financing arrangement to or by a bank or a financial
institution approved by the State Bank of Pakistan or the Securities and Exchange
Commission of Pakistan, as the case may be.
___________
S.R.O. 563(I)/2006, dated June 5, 2006.– In exercise of the powers conferred by the second
proviso to clause (46) of section 2 of the Sales Tax Act, 1990, and in supersession of the Notification No.
SRO 314(I)/2005, dated 1st April 2006, the Central Board of Revenue is pleased to fix the value of white
crystalline sugar falling under Headings No. 1701.9910 and 1701.9920 of the First Schedule to the
Customs Act, 1969 (IV of 1969) for the purpose of sales tax assessment at import stage at the rate of US$
440 per metric ton irrespective of the value at which the import is made.
_______________

S.R.O. 170(I)/2008, dated February 22, 2008.– In exercise of the powers conferred by first proviso
to clause (g) of sub-section (46) of section 2 of the Sales Tax Act, 1990, the Federal Board of Revenue is
pleased to fix the value of re-rollable scrap (PCT heading 72.04), imported through the land routes of Iran
and Afghanistan, at US$ 275 per tonne on account of its inferior quality and low freight charges. This value
shall be applicable with effect from the 6th July, 2007, on all such imports.
________________

S.R.O. 532(I)/2008, dated June 11, 2008.– In exercise of the powers conferred by first proviso to
clause (g), of sub-section (46), of section 2, of the Sales Tax Act, 1990, the Federal Board of Revenue is
pleased to fix the minimum value of taxable supply of locally produced coal (PCT heading 27.01) at one
thousand rupees per tonne.
_______________

S.R.O. 313(I)/2006, dated March 31, 2006.– In exercise of the powers conferred by clause (b) of
sub-section (2) of section 3 and clause (b) of sub-section (1) of section 8 of the Sales Tax Act, 1990, the
Federal Government is pleased to levy sales tax at the rate of 1[six] per cent of the value on import of
soyabean seed by solvent extraction industries subject to the condition that no refund of input tax shall
be admissible.
1 Substituted for “seven” by Notification No. SRO 604(I)/2012, dated June 1, 2012 w.e.f. June 02, 2012. Earlier it waw
substituted for “six” by Notification No. SRO 396(I)/2010, dated June 5, 2010 w.e.f. July 01, 2010.
___________
 49

S.R.O. 79(I)/2012, Islamabad, the 2nd February, 2012.– In exercise of the powers conferred by
clause (b) of sub-section (2) of section 3 the Federal Government is pleased to direct that sales tax shall
be charged on goods mentioned in column (2) of the Table below, subject to the conditions and
restrictions specified in column (3) thereof, namely:–
S. No. Description Conditions and restrictions
(1) (2) (3)
1. Agricultural tractors falling under (i) Import and supply thereof; and
PCT heading 8701.9020 (ii) Sales tax shall be charged at reduced rates
wherever applicable during the period indicated
below:–
Upto 31.12.2012 5%
On and from 01.01.2013 to 31.12.2013 10%
On and from 01.01.2014 16%
_______________

S.R.O. 213(I)/2013, Islamabad, the 15 th March, 2013.– In exercise of the powers conferred by
clause (b) of sub-section (2) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to
direct that sales tax shall be charged on supplies of cotton seed oil to registered or unregistered persons
at the rate of two percent of the value.
_______________

S.R.O. 509(I)/2013, Islamabad, the 12 th June, 2013.– In exercise of the powers conferred by sub-
section (5) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to levy extra tax at
the rate of five percent of the total billed amount excluding the amount of federal taxes, in addition to
the tax payable under sub-section (1) of section 3 of the Act, on supplies of electric power and natural
gas to persons having industrial or commercial connections, and whose bill in any month exceeds rupees
fifteen thousand, but who have either not obtained sales tax registration number or are not on the
Active Taxpayers List maintained by the Federal Board of Revenue, subject to the mode, manner,
conditions and limitations prescribed in the rules 1[:]
2
[Provided that the levy of extra tax at the rate of five percent shall not be applicable in case of
supply of natural gas to CNG stations.]
1 Substituted for full stop by Notification No. SRO 787(I)/2013, dated September 11, 2013 w.e.f. June 12, 2013.
2 Proviso inserted by Notification No. SRO 787(I)/2013, dated September 11, 2013 w.e.f. June 12, 2013.
_______________

S.R.O. 946(I)/2013, Islamabad, the 25th October, 2013.– In exercise of the powers conferred by
clause (b) of sub-section (2) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to
direct that sales tax shall be charged and collected on import and local supply of goods at the rate of
sixteen per cent, for the period from 21 st June, 2013 to 29th June, 2013, which otherwise were
chargeable to sales tax at the rate of seventeen per cent:
Provided that the aforesaid reduction of rate of sales tax from seventeen per cent to
sixteen per cent for the said period shall not be applicable in cases where the incidence of
tax has been passed on in terms of section 3B of the said Act.
________________

S.R.O. 509(I)/2007, Islamabad, the 9 th June, 2007.— In exercise of the powers conferred by
clause (c) of section 4 of the Sales Tax Act, 1990, and in supersession of the Notification No. S.R.O.
525(I)/2006, dated the 5th June, 2006, the Federal Government is pleased to notify the goods specified in
column (2) of the Table below, falling under the PCT Heading No. mentioned in column (3) of the said
Table, to be the goods on which sales tax shall be charged at the rate of zero per cent on the supply and
import thereof, namely:–
 50

TABLE
Sr. No. Description of goods PCT Heading No.
(1) (2) (3)
1 Leather and articles thereof including artificial leather 41.01 to 41.15, 64.03, 64.04,
footwear 6405.1000, 6405.2000 and other
respective headings
2. Textile and articles thereof Chapter 50 to Chapter 63 and
other respective headings
3. Carpets 57.01 to 57.05
4. Sports goods 9504.2000, 95.06 and other
respective headings
5. Surgical goods Respective headings
6. Maize (corn) starch 1108.1200
7. Mucilages and thickeners, whether or not modified, 1302.3210, 1302.3290,
derived from locust beans, locust bean seeds or guar 1302.3900
seeds
8. Rattans 1401.2000
9. Emery powder/grains 2513.2010
10. Magnesium oxide 2519.9010
11. Coning oil 2710.1991
12. Spin Finish Oil 2710.1998
13. Silicon dioxide 2811.2200
14. Titanium dioxide 2823.0010
15. Antimony oxide 2825.8000
16. Sodium bromate 2829.1100
17. Sodium sulphide and sodium hydrogen sulphide 2830.1010, 2830.1090
18. Sodium dithionite 2831.1010
19. Sodium sulphite and sodium hydrosulphide 2832.1010, 2832.1090
20. Disodium sulphate 2833.1100
21. Phosphinates (hypophosphites) and 2835.1000
phosphonates(phosphates)
22. Sodium dichromate 2841.3000
23. Hydrogen per oxide 2847.0000
24. p-Xylene 2902.4300
25. Trichloroethylene 2903.2200
26. Ethylene Glycol (MEG) 2905.3100
27. 4-chloro 3-methyl phenol and chloro hydro quinine 2908.1910
28. Di-ethylene glycol 2909.4100
29. Ethyl glycol 2909.4490
30. Tri-ethylene Glycol 2909.4990
31. Glutar aldehyde 2912.1900
 51

32. Formic acid 2915.1100

33. Sodium formate 2915.1210
34. Acetic acid 2915.2100
35. Sodium acetate 2915.2930
36. Cobalt acetate 2915.2940
37. Acrylic acid and its salts 2916.1100
38. Esters of Methacrylic acid 2916.1400
39. Oxalic acid 2917.1110
40. Adipic acid, its salts and esters 2917.1200
41. Maleic Acid 2917.1900
42. Pure terephthalic acid (PTA) 2917.3610
43. Tartaric acid 2918.1200
44. Gluconic acid and its salts 2918.1600
45. Glycolic acid and their esters 2918.1800
46. Other phosphoric esters and their salts 2919.9090
47. Dyes intermediates 2921.0000 2922.0000 2923.0000
2924.0000 2927.0000 2933.0000
2934.0000
48. DMF (Dimethyl Formamide) 2924.1990
49. Acrylonitrile 2926.1000
50. Other organic derivatives of hydrazine or of 2928.0090
hydroxylamine
51. Tanning extracts of vegetable origin; tannins and their 3201.1000 3201.2000 3201.9020
salts, ethers, esters & other derivatives 3201.9090
52. Synthetic organic tanning substances, inorganic tanning 3202.1000 3202.9010 3202.9090
substances, tanning perpetrations, whether or not
containing natural tanning substances; enzymatic
preparations for pretanning
53. Disperse dyes and preparations based thereon 3204.1100
54. Acid dyes & preparation based thereon 3204.1200
55. Basic dyes and preparations based thereon 3204.1300
56. Direct dyes and perpetrations based thereon 3204.1400
57. Indigo Blue 3204.1510
58. Vat dyes and preparations bases thereon 3204.1590
59. Reactive dyes and perpetrations based thereon 3204.1600
60. Pigments and perpetrations based thereon 3204.1700
61. Dyes, sulphur 3204.1910
62. Dyes, synthetic 3204.1990
63. Synthetic organic products of a kind used as fluorescent 3204.2000
brightening agents
 52

64. other synthetic organic colouring matter 3204.9000

65. Pigments and preparations based on titanium dioxide 3206.1900
66. Other colouring matter and other preparations 3206.4910
67. Granules, flakes, powder of glass (others) 3207.4090
68. Prepared water pigments of a kind used for finishing 3210.0020
leather
69. Anionic surface active agents 3402.1110
70. Anionic surface active agents 3402.1190
71. Cationic surface active agents 3402.1210, 3402.1220,
3402.1290
72. Non-ionic surface active agents 3402.1300
73. Surface active preparations and cleaning preparations 3402.9000
excluding detergents
74. Preparations for the treatment of textile material, 3403.1110, 3403.1120
leather, fur skins or other material 3403.1990 3403.9110 3403.9190
75. Spin finish Oil 3403.9131
76. Artificial waxes and prepared waxes 3404.9010
77. Other artificial waxes 3404.9090
78. Electro polishing chemicals 3405.9000
79. Other glues (printing gum) 3505.2090
80. Shoe adhesives 3506.9110
81. Hot melt adhesive 3506.9990
82. Enzymes 3507.9000
83. Photographic film, with silver halide emulsion (for 3702.3900
textile use)
84. Sensitizing emulsions (for textile use) 3707.1000
85. Lignin sulphonates 3804.0000
86. Gum rosin 3806.1010
87. Fungicides for leather industry 3808.9200
88. Preparation of a kind used in textile or like industry 3809.9100
89. Preparation of a kind used in leather or like industries 3809.9300
90. Compound plasticizers for rubber or plastics 3812.2000
91. Antimony triacetate 3815.1910
92. Palladium catalyst 3815.9000
93. Electrolyte salt 3824.9060
94. Polymers of vinyl acetate (in aqueous dispersion) 3905.1200
95. Vinyl acetate copolymers: in aqueous dispersion 3905.2100
96. Polymers of vinyl alcohol 3905.3000
97. Other vinyl polymers 3905.9990
98. Other acrylic polymers 3906.9000
 53

99. Acrylic polymers in primary forms 3906.9080

100. Polyethylene terephthalate-Yarn grade, and its waste 3907.6010
101. Nylon Chips (PA6) 3908.9000
102. Polyurethanes 3909.5000
103. Silicones in primary form 3910.0000
104. Cellulose nitrates nonplasticised 3912.2010
105. Other cellulose nitrates 3912.2090
106. Carboxymethyl cellulose and its salts 3912.3100
107. Alginic acids, its salts and esters 3913.1000
108. Nylon tubes 3917.3910
109. Artificial leather 3921.1300
110. Synthetic leather grip 3926.9099
111. Natural rubber latex 4001.1000
112. Technical specialized natural rubber 4001.2200
113. Rubber latex 4002.1100
114. Synthetic rubber SBR 1502 latex 4002.1900
115. Butadiene rubber 4002.2000
116. Thermo-plastic rubber (T.P.R.) 4002.9900
117. Vulcanized rubber thread and cord 4007.0010 4007.0090
118. Leather shearing-finish leather with wool 4302.1910
119. Articles of apparel and clothing accessories of fur skin 4303.9000
120. Artificial fur and articles thereof 4304.0000
121. English willow cleft (wood) 4404.1010
122. Cork Granules 4501.9000
123. Cork sheet 4504.1010
124. Satin Finishing Wheels 6804.2100
125. Carbon Fiber 6815.1000
126. Glass fiber sleeves 7019.3200
127. Shoe tacks 7317.0020
128. Forging of surgical and dental instruments 7326.1920
129. Nickel not alloyed 7502.1000
130. Nickel rotary printing screens 7508.9010
131. Hooks for footwear 8308.1010
132. Eyes and eyelets for footwear 8308.1020
133. Tubular or bifurcated rivets 8308.2000
134. Strings 8308.9090
135. Bladders and covers of inflatable balls 9506.9919
136. Press-fasteners, snap fasteners and press studs 9606.1000
137. Buttons of plastics not covered with textile material 9606.2100
 54

138. Buttons of base metal not covered with textile material 9606.2200
139. Studs 9606.2910
140. Buttons 9606.2920
141. Slide fasteners fitted with chain scoops of base metal 9607.1100, 9607.1900
_________________

S.R.O. 549(I)/2008, dated June 11, 2008.– In exercise of the powers conferred by clause (c) of
section 4 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the goods
mentioned in column (2) of the table below shall be charged to tax at the rate of zero per cent subject to
the conditions and restrictions specified in column (3) of that table, namely:–
TABLE
S.No. Description of goods Conditions and restrictions
(1) (2) (3)
1. Goods exempted under section 13. If exported by the manufacturer who
makes local supplies of both taxable and
exempt goods.
1
[ ]
2
[ ]
3
4. [ ] Import and supplies thereof.
(xvii) Petroleum crude oil (PCT Heading
2709.0000);
4
[ ]
5
[ ]
6
[ ]
7
[ ]
8
[ ]
9 ]
[
10 ]
[.
7. Raw materials, components, sub- If imported or purchased locally for use
components and parts. in the manufacturing of such plant and
machinery as is chargeable to sales tax at
the rate of zero percent subject to the
condition that the importer or the
purchaser of the raw materials,
1 Sr. No. 2 omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013.
2 Sr. No. 3 omitted by Notification No. SRO 230(I)/2011, dated March 15, 2011. Earlier it was substituted by Notification No.
SRO 472(I)/2009, dated June 13, 2009.
3 Entries Nos. (i) to (xvi) omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013.
4 Entries Nos. (xviii) to (xxiv) omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013.
5 Entries Nos. (xxv) & (xxvi) omitted by Notification No. SRO 486(I)/2011, dated June, 3, 2011 w.e.f. June, 4, 2011.
6 Entry No. (xxvii) omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013.
7 Entries Nos. (xxviii) & (xxix) omitted by Notification No. SRO 486(I)/2011, dated June, 3, 2011 w.e.f. June, 4, 2011.
8 Entries Nos. (xxx) to (xxxiv) omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013.
9 Sr. No. 5 omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013.
10 Sr. No. 6 omitted by Notification No. SRO 647(I)/2008, dated June 18, 2008.
Note: Omission of Sr. No. 3 shall take effect from 16th March, 2011 by virtue of Notification No. SRO 399(I)/2011, dated May 14, 2011.
 55

components, sub-components and parts

holds a valid sales tax registration
showing his registration category as
“manufacturer” 1[and in case of
imported components, sub-components
and parts, all the conditions, restrictions,
limitations and procedures as are
imposed by notification under section 19
of the Customs Act, 1969 (IV of 1969),
shall apply].
2
[ ]
3
[ ]
4
[ ]
5
[ ]
6
[ ]
7
[ ]
1 Words etc. inserted by Notification No. SRO 472(I)/2009, dated June 13, 2009.
2 Sr. No. 8 omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013. Earlier it was inserted by
Notification No. SRO 647(I)/2008, dated June 18, 2008.
3 Sr. No. 9 omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013. Earlier Sr. No. 8 renumbered
as 9 by Notification No. SRO 602(I)/2012, dated June 01, 2012 w.e.f. June 14, 2009. Earlier it was inserted as Sr. 8 by
Notification No. SRO 625(I)/2009, dated July 6, 2009. This mistake was earlier pointedout by us.
4 Sr. No. 10 omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013. Earlier Sr. No. 9
renumbered as 10 by Notification No. SRO 602(I)/2012, dated June 01, 2012 w.e.f. June 14, 2009. Earlier it was inserted as Sr.
9 by Notification No. 472(I)/2009, dated June 13, 2009, w.e.f. June 14, 2009.
5 Sr. No. 9 omitted by Notification No. SRO 602(I)/2012, dated June 01, 2012. Earlier it was inserted by Notification No. SRO
68(I)/2009, dated January 27, 2009.
6 Sr. No. 11 omitted by Notification No. SRO 502(I)/2013, dated June 12, 2013 w.e.f. June, 13, 2013. Earlier it was inserted by
Notification No. SRO 602(I)/2012, dated June 01, 2012 w.e.f. June 02, 2012.
7 Annexure omitted by Notificaiton No. SRO 486(I)/2011, dated June 3, 2011 w.e.f. June 4, 2011. Earlier it was inserted by
Notification No. SRO 472(I)/2009, dated June 13, 2009, w.e.f. June 14, 2009. For Annexure see Tax Review page ST 365.
_________________

S.R.O. 423(I)/2009, dated May 28, 2009.– In exercise of the powers conferred by clause (c) of
section 4 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that all the products,
services and equipments for the execution of work on the project the improvement of Kararo-Wadh
section of National Highway N-25, supplied to M/s TAISEI Corporation, Islamabad, shall be charged at the
rate of zero per cent subject to the following conditions and restrictions, namely:–
(i) the products, services and equipment shall exclusively be used for the project “The
improvement of Kararo-Wadh section of National Highway N-25” and the same shall not be
sold or otherwise disposed of without Board’s prior approval and without payment of duty
and taxes;
(ii) at the time of purchase of products, services and equipment, it shall be certified by M/s
TAISEI Corporation, Islamabad, to the extent that the goods pertain to M/s TAISEI
Corporation, Islamabad; and
(iii) in case of non-compliance of any one of the above conditions, full duty and taxes
leviable at the time of supply shall be charged in addition to any other action so warranted
under the Sales Tax Act, 1990.
_______________
 56

S.R.O. 811(I)/2009, dated September 19, 2009.– In exercise of the powers conferred by 1[
] 2[section 19 of the Customs Act, 1969 (IV of 1969)], and in supersession of its Notification No.
S.R.O. 769(I)/2009, dated the 4th September, 2009, the Federal Government is pleased to 3[ ]
4
[exempt from customs duty] the import and supply of polyethylene and polypropylene falling under PCT
heading No. 3901.1000, 3901.2000 and 3902.1000 for manufacture of mono filament yarn and net cloth
subject to the condition that the manufacturer is duly registered and has in-house manufacturing facility
5
[and who makes 6[ ] supplies of net cloth to green house farming] subject to the following
conditions, restrictions, limitations and procedure, namely:–
(i) A sales tax registered importer-cum-manufacturer having suitable in-house facilities shall
submit a complete requirement in the prescribed format appended as Form-I of his annual
consumption of permissible items (inputs) he is entitled to import for the manufacture of
mono filament yarn and net cloth, to the Collector of Sales Tax and Federal Excise having
jurisdiction or to any other organization or person as authorized by the Federal Board of
Revenue;
(ii) the importer-cum-manufacturer shall file a request containing a declaration of input/ output
ratios to the Collector of Sales Tax and Federal Excise or the authorized person. The Collector or
the authorized person may accept the declaration of input output ratio as declared by the
applicant and determine the annual requirement of inputs. In case the Collector or authorized
person is not satisfied with declared input output ratios of the items to be manufactured
because of their being prima facie not in accordance with the prevalent average of the relevant
industry or for any other reason, he may, after allowing a reasonable provisional quantity, make
a reference to the Engineering Development Board or IOCO or to any other recognized authority
for final determination thereof. The collector or authorized person shall then determine the final
annual quantitative entitlement of inputs and the applicant shall proceed to consume imported
inputs in accordance with the input output ratios and quantities so determined;
(iii) the clearance of inputs shall be allowed through one port or dry port only and
maintenance of centralized record of quota debiting at the port for which the Provisional or
Final Certificate is issued shall be maintained;
(iv) the authorized officer of Sales Tax Collectorate shall furnish all relevant information
online to Customs Computerized System (PACCS) as per Form-II appended to this notification
against a specific user ID and password obtained under section 155D of the Customs Act,
1969. In already computerized Collectorate/Customs stations where the 7[WeBOC] is not yet
operational, the Project Director or any other authorized person shall feed the requisite
information in the 7[WeBOC] on daily basis and on weekly basis of the data obtained from
the stations which have not yet been computerized;
(v) the importer-cum-manufacturer shall file Goods Declaration in the prescribed format
and manner with complete details of authorization of imported inputs for clearance. The
Collector of Customs on satisfaction of correct declaration shall allow clearance of imported
inputs after obtaining post dated cheque for the differential amount of 8[statutory and
concessionary customs duty 9[ ]].
1 Words etc. “clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990 and” omitted by Notification No. SRO
152(I)/2013, dated February 28, 2013. Earlier words etc. “clause (c) of section 4” substituted for “clause (a) of sub-section (2)
of section 13” by Notification No. SRO 591(I)/2012, dated June 1, 2012 w.e.f. June 2, 2012 and word “and” inserted by
Notification No. SRO 645(I)/2011, dated June 24, 2011.
2 Words etc. inserted by Notification No. SRO 645(I)/2011, dated June 24, 2011.
3 Wrds “exempt from Sales Tax and” omitted by Notification No. SRO 152(I)/2013, dated February 28, 2013. Earlier words
“zero-rate” was substituted for “exempt from Sales Tax” by Notification No. SRO 591(I)/2012, dated June 1, 2012 w.e.f. June
2, 2012 and word “and” inserted by Notification No. SRO 645(I)/2011, dated June 24, 2011.
4 Words inserted by Notification No. SRO 645(I)/2011, dated June 24, 2011.
5 Substituted for “and supplies net cloth to green house farming at zero-rate” by Notification No. SRO 591(I)/2012, dated June
1, 2012 w.e.f. June 2, 2012.
6 Word “exempt” omitted by Notification No. SRO 152(I)/2013, dated February 28, 2013.
7 Substituted for “PACCS” by Notification No. SRO 152(I)/2013, dated February 28, 2013.
8 Substituted for “statutory tax and concessionary taxes” by Notification No. SRO 645(I)/2011, dated June 24, 2011.
9 Words “and sales tax” omitted by Notification No. SRO 152(I)/2013, dated February 28, 2013.
 57

(vi) the importer-cum-manufacturer shall maintain records of the inputs and the goods
manufactured from imported inputs in such form as may be prescribed by the Federal Board
of Revenue or required under any other law for the time being in force;
(vii) the importer-cum-manufacturer shall communicate to the concerned Collector of Sales
Tax and Collector of Customs in writing about the consumption of imported items within
sixty days of consumption of goods. The post dated cheque shall be released or cancelled on
receipt of written confirmation regarding consumption of goods by the importer-cum-
manufacturer. In case of non-consumption within one year from the date of import, the
importer shall pay the 1[amount of customs duty 2[ ]] involved or obtain extension from the
Collector of Sales Tax and Federal Excise under intimation to Collector of Customs giving
plausible reasons for a reasonable period not exceeding ninety days;
(viii) the Collector of customs may, on its own or through the Collector of Sales Tax
and Federal Excise or through any other department working under Revenue Division,
whenever deemed necessary get the records of the importer-cum-manufacturer audited
and may also get the stocks verified. In case it is found that the inputs have not been
properly accounted for or consumed for the manufacture and supply of goods as prescribed,
the Collector may initiate proceedings for the recovery of leviable 3[custom duty] 4[ ]
besides penal action under the relevant provisions of the 5[ ] 6[the Customs Act, 1969
(IV of 1969)];
FORM-1
[See clause (i)]
(To be filled in by the importer-cum-manufacturer or any person or persons duly authorized by him from
his organization)
Name & address of the Importer NTN/FTN

Port of clearance Clearing Agents Name/No.

S. HS Description Specification Applicable Quantity Unit Unit of Total value

7
No. Code of imported [statutory] rate of value measure in Pak
inputs duty rupees
(1) (2) (3) (4) (5) (6) (7) (8) (9)
CERTIFICATE
It is certified that the description and quantity mentioned above are commensurate with the
inputs requirement. It is further certified that the above items shall not be used for any other purpose.
Signature _______________________
Name _______________________
NIC No. _______________________
1 Substituted for “sales tax” by Notification No. SRO 645(I)/2011, dated June 24, 2011.
2 Words “and sales tax” omitted by Notification No. SRO 152(I)/2013, dated February 28, 2013.
3 Words inserted by Notification No. SRO 645(I)/2011, dated June 24, 2011.
4 Words “and sales tax” omitted by Notification No. SRO 152(I)/2013, dated February 28, 2013. Earlier word “and” inserted by
Notification No. SRO 645(I)/2011, dated June 24, 2011.
5 Words etc. “the Sales Tax Act, 1990 and” omitted by Notification No. SRO 152(I)/2013, dated February 28, 2013. Earlier word
“and” inserted by Notification No. SRO 645(I)/2011, dated June 24, 2011.
6 Words etc. inserted by Notification No. SRO 645(I)/2011, dated June 24, 2011.
7 Words inserted by Notification No. SRO 645(I)/2011, dated June 24, 2011.
 58

FORM-II
[See clause (iv)]
(To be filled in by the Collector of Sales Tax Collectorate)
Header information
NTN/FTN of importer Name of importer Approval No.
(1) (2) (3)
Details of input goods (to be filled by the authorized officer of the Goods imported (Collectorate of
Regulatory Authority) import)
HS Description Specs Applicable Quantity UOM Quantity Collectorate CRN/ Date of
1
Code [statutory imported Mach. CRN/Mach.
rate of No. No.
duty]
(4) (5) (6) (7) (8) (9) (10) (11) (12) (13)
It is certified that the description and quantity mentioned above are commensurate with the
input requirement.
Signature _______________________
Name _______________________
Stamp _______________________
Note.- In case of clearance through Pakistan Customs Computerized System (PACCS),
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.
1 Substituted for “customs duty rate” by Notification No. SRO 645(I)/2011, dated June 24, 2011.
_________________

S.R.O. 1125(I)/2011, Islamabad, the 31 st December, 2011.– In exercise of the powers

conferred by clause (c) of section 4 read with clause (b) of sub-section (2) and sub-section (6) of
section 3, clause (b) of sub-section (1) of section 8 and section 71 of the Sales Tax Act, 1990, and in
supersession of its Notification No. S.R.O. 1058(I)/2011, dated the 23 rd November, 2011, the Federal
Government is pleased to 1[direct that sales tax shall be charged, levied and paid at the rate of two per
cent of the value of the goods mentioned in column (2) of Table-I below, at the rate of five per cent of
the value of the goods mentioned in column (2) of Table-II below, falling under PCT heading numbers
specified in column (3) of the said respective tables, and at the rates of two, five or seventeen per
cent, as the case may be, on the goods or class of goods mentioned in the conditions stated in this
notification], to the extent and in the manner as specified in the aforesaid conditions, namely:–
2
[TABLE-I]
S.No. Description of goods PCT heading No.
(1) (2) (3)
3
[01 Leathers and articles thereof, excluding finished articles of Chapter 41 and heading
leather and artificial leather 64.06
1 Substituted for “notify the goods specified in column (2) of the Table below under the PCT heading numbers mentioned in
column (3) of the said Table, including the goods or class of goods mentioned in the conditions stated in this notification, to
be the goods on which sales tax shall, subject to the said conditions be charged *[at the rate of two percent] or, as the case
may be, at the rate of five per cent, wherever applicable” by Notification No. SRO 682(I)/2013, dated July 26, 2013.
* Substituted for “at zero-rate” by Notification No. SRO 154(I)/2013, dated February 28, 2013 w.e.f. March 01, 2013.
2 Substituted for “TABLE” by Notification No. SRO 682(I)/2013, dated July 26, 2013.
3 Sr. Nos. 1, 2 & 3 substituted by Notification No. SRO 504(I)/2013, dated June, 12, 2013.
 59

02. Textile and articles thereof, excluding Chapters 50, 51, 52, 53, 54
(a) finished articles of textiles and textile made-ups; (excluding 5407.2000), 55,
(b) mono-filament of more than 67 decitex; 56 (excluding 56.08 and
(c) sun shading; 56.09), 57(excluding made
(d) fishing net of nylon or other material;
(e) rope of polyethylene or nylon; and ups), 58, 59 (excluding
(f) tyre cord fabric 59.05, 59.10) and 60
03. Carpets, excluding those in finished condition Chapter 57 (excluding made
ups)]
04. Maize (corn) starch 1108.1200
05. Mucilages and thickness, whether or not modified, derived 1302.3210, 1302.3290,
from locust beans locust bean seeds or guar seeds 1302.3900
1
[06. Sports goods, excluding those in finished condition Respective headings
excluding finished goods.
07. Surgical goods, excluding those in finished condition Respective headings
excluding finished goods]
08. Emery powder/grains 2513.2010
09. Magnesium oxide 2519.9010
10. Coning oil 2710.1991
11. Spin finish Oil 2710.1998
12. Antimony oxide 2825.8000
13. Sodium bromate 2829.9000
14. Sodium sulphide and sodium hydrogen sulphide 2830.1010, 2830.1090
15. Sodium dithionite 2831.1010
16. Sodium sulphite and sodium hydrosulphide 2832.1010, 2832.1090
17. Phosphinates (hypophosphites) and phosphonates 2835.1000
(phosphates)
18. Sodium dichromate 2841.3000
19. Hydrogen per oxide 2847.0000
20. p-Xylene 2902.4300
21. Trichloroethylene 2903.2200
22. Ethylene Glycol (MEG) 2905.3100
23. Di-ethylene glycol 2909.4100
24. Ethyl glycol 2909.4490
25. Tri-ethylene Glycol 2909.4990
26. Glutar aldehyde 2912.1900
27. Formic acid 2915.1100
28. Sodium formate 2915.1210
29. Acetic acid 2915.2100
30. Sodium acetate 2915.2930
31. Acrylic acid and its salts 2916.1100
32. Esters of Methacrylic acid 2916.1400
1 Sr. Nos. 6 & 7 substituted by Notification No. SRO 504(I)/2013, dated June, 12, 2013.
 60

33. Oxalic acid 2917.1110

34. Pure terephthalic acid (PTA) 2917.3610
35. Glycolic acid and their esters 2918.1800
36. Other phosphoric esters and their salts 2919.9090
37. Dyes intermediates 2921.0000 2922.0000
2923.0000 2924.0000
2927.0000 2933.0000
2934.0000
38. DMF (Dimethyl Formamide) 2924.1990
39. Acrylonitrile 2926.1000
40. Other organic derivatives of hydrazine or of hydroxylamine 2928.0090
41. Tanning extracts of vegetable origin; tannins and their salts, 3201.1000 3201.2000
ethers, esters and other derivatives 3201.9020 3201.9090
42. Synthetic organic tanning substances, inorganic tanning 3202.1000 3202.9010
substances, tanning perpetrations, whether or not containing 3202.9090
natural tanning substances; enzymatic preparations for pre-
tanning
43. Disperse dyes and preparations based thereon. 3204.1100
44. Acid dyes and preparations based thereon 3204.1200
45. Basic dyes and preparations based thereon 3204.1300
46. Direct dyes and preparations based thereon 3204.1400
47. Indigo Blue 3204.1510
48. Vat dyes and preparations based thereon 3204.1590
49. Reactive dyes and preparations based thereon 3204.1600
50. Pigments and preparations based thereon 3204.1700
51. Dyes, sulphur 3204.1910
52. Dyes, synthetic 3204.1990
53. Synthetic organic products of a kind used as fluorescent 3204.2000
brightening agents.
54. Other synthetic organic colouring matter 3204.9000
55. Pigments and preparations based on titanium dioxide. 3206.1900
56. Other colouring matter and other preparations 1[excluding 3206.4900
master batches]
57. Granules, flakes, powder of glass (others) 3207.4090
58. Prepared water pigments of a kind used for finishing Leather 3210.0020
59. Cationic surface active agents 3402.1210 3402.1220
3402.1290
60. Non-ionic surface active agents 3402.1300
61. Surface active preparations and cleaning preparations 3402.9000
excluding detergents
62. Preparations for the treatment of textile material, leather, fur 3403.1110 3403.1120
skins or other material 3403.1990 3403.9110
3403.9190
1 Words inserted by Notification No. SRO 504(I)/2013, dated June, 12, 2013.
 61

63. Spin finish oil 3403.9131

64. Artificial waxes and prepared waxes 3404.9010
65. Other artificial waxes 3404.9090
66. Electro polishing chemicals 3824.9060
67. Other glues (printing gum) 3505.2090
1
[ ]
69. Hot melt adhesive 3506.9110 3506.9190
70. Enzymes 3507.9000
71. Photographic film, with silver halide emulsion (for textile use)
3702.4300 3702.4400
72. Sensitizing emulsions (for textile use) 3707.1000
73. Fungicides for leather industry 3808.9220
74. Preparation of a kind used in textile or like industry 3809.9110 3809.9190
75. Preparation of a kind used in leather or like industries 3809.9300
76. Compound plasticizers for rubber or plastics 3812.2000
77. Antimony triacetate 3815.1910
78. Palladium catalyst 3815.9000
79. Electrolyte salt 3824.9060
80. Polymers of vinyl acetate (in aqueous dispersion) 3905.1200
81. Vinyl acetate copolymers: in aqueous dispersion 3905.2100
82. Polymers of vinyl alcohol 3905.3000
83. Other vinyl polymers 3905.9990
84. Other acrylic polymers 3906.9030
85. Acrylic polymers in primary forms 3906.9090
86. Polyethylene terephthalate-Yarn grade, and its waste 3907.6010
87. Nylon Chips (PA6) 3908.1000
88. Polyurethanes 3909.5000
89. Silicones in primary form 3910.0000
90. Cellulose nitrates nonplasticised 3912.2010
91. Other cellulose nitrates 3912.2090
92. Carboxymethyl cellulose and its salts 3912.3100
93. Alginic acids, its salts and esters 3913.1000
94. Nylon tubes 3917.3910
95. Artificial leather 3921.1300
96. Synthetic leather grip 3926.9099
97. Natural rubber latex 4001.1000
98. Technical specialized natural rubber 4001.2200
99. Rubber latex 4002.1100
100. Synthetic rubber SBR 1502 latex 4002.1900
101. Butadiene rubber 4002.2000
102. Thermo-plastic rubber (T.P.R.) 4002.9900
1 Sr. No. 68 omtted by Notification No. SRO 504(I)/2013, dated June, 12, 2013.
 62

103. Vulcanized rubber thread and cord 4007.0010 4007.0090

104. Leather shearing-finish leather with wool 4302.1910
105. Articles of apparel and clothing accessories of fur skin 4303.9000
106. Artificial fur and articles thereof 4304.0000
107. English willow cleft (wood) 4404.1000
108. Cork Granules 4501.9000
109. Cork sheet 4504.1010
110. Satin Finishing Wheels 6804.2100
111. Carbon Fiber 6815.1000
112. Glass fiber sleeves 7019.9010
113. Forging of surgical and dental instruments 7326.1920
114. Nickel rotary printing screens 7508.9010
115. Hooks for footwear 8308.1010
116. Eyes and eyelets for footwear 8308.1020
117. Tubular or bifurcated rivets 8308.2000
118. Strings 8308.9090
119. Bladders and covers of inflatable balls 9506.9919
120. Press-fasteners, snap fasteners and press studs 9606.1000
121. Buttons of plastics not covered with textile material 9606.2100
122. Buttons of base metal not covered with textile materials 9606.2200
123. Studs 9606.2910
124. Buttons 9606.2920
125. Slide fasteners 9607.1100 9607.1900
126. Wood-pulp (dissolving grade) 4702.0000 if imported by
manufacturers of viscose
staple fibre for use in the
manufacturing of viscose
staple fibre.
127. Cotton linter 1404.2000
128. Sequins 3926.9099
1
[TABLE-II]
S.No. Description of goods PCT heading No.
(1) (2) (3)
01 Finished articles of leather and artificial leather Respective headings
02 Finished articles of textiles and textile made-ups excluding used Respective headings]
and worn clothing;
2
[CONDITIONS
(i) the benefit of this notification shall be available only to persons doing business in
textiles (including jute), carpets, leather, sports and surgical goods sectors, who are
registered as
1 TABLE-II inserted by Notification No. SRO 682(I)/2013, dated July 26, 2013.
2 Conditions substituted by Notification No. SRO 154(I)/2013, dated February 28, 2013 w.e.f. March 01, 2013.
 63

manufacturer, importer, exporter or wholesaler under the Sales Tax Act, 1990, and
appear on the Active Taxpayers List (ATL) on the website of Federal Board of Revenue;
(ii) this notification shall apply from–
(a) spinning stage onwards, in case of textile sector;
(b) production of PTA or MEG, in case of synthetic section;
(c) regular manufacturing, in case of carpets and jute products;
(d) tannery onwards, in case of leather sector; and
(e) organized manufacturing, in case of surgical and sports goods;
(iii) on import by registered manufacturers of the five sectors mentioned in condition (i),
sales tax shall be charged at the rate of two per cent on goods useable a industrial inputs;

LEGISLATIVE HISTORY
Conditions-Substitution.– Before substitution by Notification No. S.R.O. 154(I)/2013, dated 28.02.2013 conditions
read as under:–
“CONDITIONS
(i) The benefit of this notification shall be available to every such person doing business in textile (including
jute), carpets, leather, sports and surgical goods sectors, who is registered as:–
(a) manufacturer;
(b) importer;
(c) exporter; and
(d) wholesaler;
(ii) on import by registered manufacturers of five zero-rated sectors mentioned in condition (i) above, sales tax
shall be charged at the rate of zero per cent on goods useable as industrial inputs;
(iii) the goods imported by, or supplies made to manufacturers, other than manufacturers mentioned in
condition (i) above, shall be charged, sales tax at the rate of five per cent;
(iv) the commercial importers, on import of goods useable as industrial inputs, shall be charged sales tax at the
rate of two per cent alongwith one per cent value addition tax at the import stage, which will be accountable
against their subsequent liabilities arising against supply of these goods to the zero-rated sector at the rate of
zero per cent or to non zero-rated sectors or unregistered persons at the rate of five per cent as the case may
be. The balance amount shall be paid with the monthly sales tax return or in case of excess payment shall be
carried forward to the next tax period;
(v) the import of finished goods ready for use by the general public, shall be charged to tax at the rate of five
per cent and value addition tax at the rate of one per cent;
(vi) supplies of finished products of the sectors specified in condition (i) shall, if sold to the retailers (both
registered and unregistered) or end consumers shall be charged to sales tax at the rate of five per cent ad val;
(vii) supplies of goods, usable as industrial inputs, to registered persons of five zero-rated sectors up to
wholesale stage shall be charged to tax at the rate of zero per cent;
(viii) the registered persons who are solely or otherwise engaged in the retail business of these goods
or products shall pay sales tax at the rate of five per cent ad val on their retail sales and shall be entitled to input
tax adjustment. They shall not be required to pay any other sales tax leviable on their such retail transactions,
however, such retailers shall be liable to pay turnover tax as prescribed under Chapter III of the Sales Tax Special
Procedure Rules, 2007, and the goods supplied at the rate of five per cent shall not constitute part of turnover
on which the aforesaid turnover tax is to be paid;
(ix) the registered manufacturers who process goods owned by unregistered persons shall charge sales tax at
the rate of five per cent on the processing charges received by them, provided that no such tax shall be charged
from the registered principals;
(x) a registered person who has consumed any other inputs acquired on payment of sales tax, whether covered
under this notification or not, shall be entitled to input tax adjustment or, as the case may be, refund in respect
of the supplies made by him either at the rate of zero per cent or five per cent or sixteen per cent ad val as the
case may be;
(xi) the registered manufacturers shall be entitled to adjustment of input tax paid on machinery, parts, spares
and lubricants acquired by them for their own use;
(xii) supply of electricity and gas to the registered manufacturers or exporters of five zero-rated sectors
mentioned in condition (i), shall be charged sales tax at the rate of zero per cent in the manner specified by the
Board;
(xiii) the benefit of this notification shall be available to such registered persons who appear on active
taxpayers list (ATL) on the website of Federal Board of Revenue; and
(xiv) this notification shall apply from:
 64

(a) ginning onwards in case of textile sector;

(iv) on import by commercial importers of goods useable as industrial inputs, sales tax shall
be charged at the rate of two per cent along with two per cent value addition tax at the
import stage, which shall be accountable against their subsequent liabilities arising against
supply of these goods to persons in the five sectors mentioned in condition (i) at the rate of
two per cent, and to persons outside the said five sectors at the rate of 1[seventeen per
cent]. The balance amount shall be paid with the monthly sales tax return, or in case of
excess payment shall be carried forward to the next tax period;
(v) import of finished goods ready for use by the general public, shall be charged to tax at
the rate of 2[five] per cent and value addition tax at the rate of two per cent;
(vi) supplies of goods, usable as industrial inputs, to registered 3[or unregistered] persons of
the five sectors mentioned in condition (i), shall be charged to tax at the rate of two per
cent, whereas supplies to persons not belonging to the said five sectors shall be charged to
tax at the rate of 1[seventeen per cent];
(vii) supplies of finished products of the sectors specified in condition (i) to 4[ ] retailers
shall be charged to sales tax at the rate of 2[five] per cent;
5
[(viia) notwithstanding anything contained in any others condition of this Notification,
import and supplies of fabric shall be charge to sales tax at the rate of three per cent and
value addition tax at the rate of two per cent shall be chargeable on commercial imports of
fabrics;]
(viii) registered persons engaged in the retail sale of these goods shall pay sales tax at
the rate of 2[five] per cent on their retail sales and shall be entitled to input tax adjustment.
Such goods supplied at the rate of 2[five] per cent shall not constitute part of turnover for
the purpose of turnover tax payable as prescribed under Chapter III of the Sales Tax Special
Procedure Rules, 2007;
6
[(ix) registered manufacturers who process goods, including fabrics, owned by other
persons shall charge sales tax at the rate of two per cent of the processing charges received
by them;]
7
[(ixa) goods specified in Table-I, imported or supplies to registered manufacturers,
whether or not of the five sectors, for manufacture of goods specified in Table-I or Table-II,
shall be charged sales tax at the rate of two per cent on their import or supply;]
1 Substituted for “five per cent” by Notification No. SRO 682(I)/2013, dated July 26, 2013.
2 Substituted for “two” by Notification No. SRO 682(I)/2013, dated July 26, 2013.
3 Words inserted by Notification No. SRO 221(I)/2013, dated March 19, 2013.
4 Word “registered” omitted by Notification No. SRO 221(I)/2013, dated March 19, 2013.
5 Clause (viia) inserted by Notification No. SRO 898(I)/2013, dated October 4, 2013.
6 Clause (ix) substituted by Notification No. SRO 221(I)/2013, dated March 19, 2013.
7 Clause (ixa) inserted by Notification No. SRO 682(I)/2013, dated July 26, 2013.

LEGISLATIVE HISTORY
(b) production of PTA or MEG for synthetic sector;
(c) regular manufacturing in case of carpets and jute products;
(d) tannery in case of leather sector; and
(e) organized manufacturing in case of surgical and sports goods
2. This notification shall take effect on and from the 1st day of January, 2012.
Clause (ix) and Explanation-Substitution.– Before substitution by Notification No. SRO 221(I)/2013, dated March 19,
2013 clause (ix) and explanation read as under:–
“(ix) registered manufactures who process goods owned by others shall charge sales tax at the rate of two
per cent on the value of goods, inclusive of processing charges received by them;
Explanation.– For the purposes of this provision, and in terms of the proviso to sub-section (33) of
section 2 of the Sales Tax At, 1990 the return of goods by the processor to the principle after processing shall
 65

constitute supply, and the value of supply of such goods shall be the open market price of such goods inclusive
of the processing charges;”
1
[(x) a registered person who has consumed inputs acquired on payment of sales tax,
shall be entitled to input tax adjustment, subject to the relevant provisions of the Sales Tax
Act, 1990 and Rules made thereunder.
2
[Provided that refund against local supplies, if any, shall be admissible only
subject to pre-refund audit and in case of value addition of less that ten percent subject to
the condition that the registered persons furnishers a revolving bank guarantee valid for at
least ninety days issued by a scheduled bank to the satisfaction of the Commissioner, Inland
Revenue having jurisdiction, of an amount not less than the average monthly refund claim
during last twelve months:
Provided further that the post-refund audit shall be conducted and finalized
within a period of ninety days and certificate to the genuineness of the refund claim shall be
issued for each and every claim by the Commissioner, Inland Revenue having jurisdiction,]]
(xi) registered manufactures shall be entitled to adjustment of input tax paid on machinery,
parts, spares and lubricants acquired by them for their own use, subject to the relevant
provisions of the Sales Tax Act, 1990 and Rules made thereunder; and
(xii) supply of electricity and gas to the registered manufacturers or exporters of the five
sectors mentioned in condition (i), shall be charged sales tax at the rate of zero percent in
the manner specified by the Board.”
2. This notification shall take effect on and from the 1st day of March, 2013.]
1 Clause (x) substituted by Notification No. SRO 221(I)/2013, dated March 19, 2013.
2 Proviso substituted by Notification No. SRO 898(I)/2013, dated October 4, 2013.
Clause (x) Proviso-Substitution.– Before substitution by Notification No. SRO 898(I)/2013, dated October 4, 2013,
proviso read as under:–
“Provided that in case of local supplies no refund shall be admissible. However, exporters shall be
entitled to get refund in accordance with the law.”
Clause (x)-Substitution.– Before substitution by Notification No. SRO 221(I)/2013, dated March 19, 2013 clause (x)
read as under:–
“(x)a registered person who has consume any other inputs acquired on payment of sales tax, shall be entitled to
input tax adjustment or, as the case may be, refund against taxable supplies made by him, subject to the
relevant provisions of the Sales Tax Act, 1990 and Rule made thereunder;”
_______________

S.R.O. 179(I)/2013, dated March 07, 2013.– In exercise of the powers conferred by clause (b) of
sub-section (2) and sub-section (6) of section 3, section 27 and section 34A of the Sales Tax Act, 1990,
the Federal Government is pleased to direct that all registered persons, who claimed zero-rating on
supplies made by them in term of Notification No. S.R.O. 283(I)/2011, dated the 1 st April, 2011,
Notification No. S.R.O. 1058(I)/2011, dated the 23 rd November, 2011 and Notification No. S.R.O.
1125(I)/2011, dated the 31st December, 20112, during the period from 1 st April, 2011 to 28th February,
2013 may, with respect to all or part of such supplies on which due tax has not been paid and
irrespective of the past or present registration status of the buyers, pay sales tax at the rate of 2 percent
of the value of such supplies through a special sales tax return to be prescribed by the Board, along with
details of all sales tax invoices against which such payment is being made, without any default surcharge
or penalty, provided that such payment is made on or before the 1[15th April, 2013].2. This notification
shall not entitle any person to claim refund or adjustment against any sales tax paid on such supplies at a
higher rate.
1 Substituted for “31st March, 2013” by Notification No. SRO 274(I)/2013, dated April 01, 2013.
_______________

SR.O. 670(I)/2013, Islamabad, the 18 th July, 2013.– In exercise of powers conferred by clause (c) of
section 4 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the import and
 66

supply of goods mentioned in column (2) of the Table below and the raw materials, packing materials,
sub-components, components, sub-assemblies and assemblies imported or purchased locally for the
manufacture of the said goods shall be charged to sales tax at the rate of zero percent subject to the
conditions specified below the Table, namely:–
TABLE
S. No. Description of goods PCT Heading
(1) (2) (3)
1. Colors in sets 3213.1000
2. Writing, drawing and marking inks 3215.9010 and 3215.9090
3. Erasers 4016.9210 and 4016.9290
4. Exercise books 4820.2000
5. Pencils sharpener 8214.1000
6. Geometry boxes 9017.2000
7. Pens, ball pens, markers and porous tipped pens 96.08
8. Pencils including color pencils 96.09
9. Milk including flavored milk 04.01 and 0402.9900
10. Yogurt 0403.1000
11. Cheese 0406.1010
12. Butter 0405.1000
13. Cream 04.01 and 04.02
14. Desi ghee 0405.9000
15. Whey 04.04
16. Milk and cream, concentrated and added sugar or other 0402.1000
sweetening matter
17. Preparations for infant use put up for retail sale 1901.1000
18. Fat filled milk 1901.9090
19. Bicycles 87.12
CONDITIONS
(i) The zero-rating under this notification shall be available subject to determination of
input/output ratios by the Input-Output Co-efficient Organization (hereinafter referred to as
“IOCO”), if not already determined under an earlier concessionary notification issued for
such goods:
Provided that this condition shall not be applicable in case of import of finished
goods and their supply in same state; and
(ii) For import and local procurement of raw materials, packing materials, subcomponents,
components, sub-assemblies and assemblies for the manufacture of the goods specified in
column (2) of the said Table, the following conditions and procedures shall be followed,
namely:–
(a) a sales tax registered manufacturer of the goods specified in the said Table
having suitable in-house facilities shall submit, in the format prescribed in Annex-A to
this notification, the complete list of his annual requirement of the inputs he intends to
 67

import or purchase locally for the manufacture of goods specified in column (2) of the
said Table, to the Commissioner Inland Revenue having jurisdiction;
(b) the Commissioner shall approve the declaration of input-output ratio of the
manufacturer without physical verification in case the declared input-output ratio and
input requirement is in accordance with the prevailing industry average or the inputs
consumption pattern of the applicant manufacturer or as already determined by IOCO
under an earlier notification issued for such goods, in the format of approval prescribed
as Annex-B to this notification;
(c) in case the Commissioner is not satisfied with the declared input-output ratios
of the goods to be manufactured because of their being prima facie not in accordance
with the prevalent average of the relevant industry or in case the input-output ratios are
not already determined by IOCO, he may, after allowing a six months provisional
quantity, make a reference to the IOCO for final determination thereof. On receipt of
report from IOCO the Commissioner shall then determine the final annual quantitative
entitlement of inputs and grant final approval for zero-rated purchases or imports. In
case of non-receipt of report from IOCO within four months of the application made by
the manufacturer, the Commissioner shall provisionally allow another six months
quantity to the applicant manufacturer;
(d) in case of goods to be imported by the registered manufacturer, the
authorized officer of Inland Revenue shall furnish all relevant information online to
Customs Computerized System as per Annex-C to this notification against a specific
user ID and password obtained under section 155D of the Customs Act, 1969 (IV of
1969);
(e) where a registered person supplies goods to a registered manufacturer of goods
specified in the said Table, he shall issue a zero-rated invoice under section 23 of the
Sales Tax Act, 1990 mentioning the name, sales tax registration and approval number of
the buyer;
(f) the registered manufacturer of goods specified in the said Table will be entitled
to claim refund of input tax paid on utilities and such inputs, which are purchased by him
after payment of sales tax, in terms of section 10 of the Sales Tax Act, 1990 read with the
relevant provision of the sales tax rules, 2006;
(g) the registered manufacturer shall maintain complete records of the inputs
imported or locally purchased and the goods manufactured therefrom;
(h) the input goods allowed under clause (ii) shall be consumed within twelve
months of purchase or import thereof, where the consumption period shall start from
the date of purchase or import of input goods. However, the input goods shall be
purchased or imported before the expiry date of the approval.
(i) the manufacturer shall communicate to the concerned Commissioner of Inland
Revenue in writing about the consumption of imported or locally procured inputs
within ninety days of their consumption. The indemnity bond shall be released on
receipt of written confirmation regarding consumption of goods by the manufacturer.
(j) in case the input goods are not consumed within the period allowed in the
approval, the manufacturer shall pay the amount of sales tax involved or obtain
extension from the Commissioner of Inland Revenue under intimation to the Collector of
Customs;
(k) the concerned Commissioner Inland Revenue, whenever he deems necessary
but not more than once in a calendar year, may get the records of the manufacturer
 68

audited. In case it is found that the inputs have not been properly accounted for or
consumed in the manufacture and supply of goods as prescribed, the Commissioner may
initiate proceedings for recovery of the sales tax involved on the unaccounted inputs
besides penal action under the relevant provisions of the Sales Tax Act, 1990; and
(l) under circumstances of exceptional nature and for reasons to be recorded in
writing, the concerned Commissioner may relax any of the conditions, if he is satisfied
that such condition is detrimental to the bona fide purposes of manufacturer’s business,
subject to such surety or guarantee he may deem appropriate to secure the sales tax
and to ensure proper accountal and utilization of the imported or locally procured
goods.
Annex – A
[See condition (i)]
Name of the Manufacturer: _________________________
Sales Tax Registration No: _________________________
N.T.N. No: ______________________________________
Address: ________________________________________
Application date: _________________________________
S. Description of PCT Description of raw PCT Input- Quantity
No. goods to be Heading materials, Heading output
manufactured components, sub- ratio
components,
assemblies, sub-
assemblies and
packing materials
(1) (2) (3) (4) (5) (6) (7)
Authorized Signature: _________________
Annex-B
[See condition (ii)]
Approval No. __________________________________
Name of the Manufacturer: _______________________
Sales Tax Registration No: _______________________
N.T.N. No: ____________________________________
Expiry date of approval: _________________________
S. Description of PCT Description of raw materials, components, PCT Quantity
No. goods to be Heading sub-components, assemblies, sub- Heading allowed
manufactured assemblies and packing materials
(1) (2) (3) (4) (5) (6)
Authorized Signature of Sales Tax Officer: _________________
Annex-C
[See condition (iii)]
Name of the Manufacturer: ________________________
Sales Tax Registration No: ________________________
N.T.N. No: _____________________________________
Address: _______________________________________
 69

S. No. Description of input goods to be imported PCT Heading Quantity Value

(1) (2) (3) (4) (5)
Authorized Signature: _________________
_______________

S.R.O. 1020(I)/2006, dated October 2, 2006.– In exercise of the powers conferred by section 7A
of the Sales Tax Act, 1990, the Federal Government is pleased to fix the minimum value addition
mentioned in column (3) of the Table below for the categories of persons mentioned in column (2)
thereof for the purpose of payment of sales tax on supply of computer hardware and parts (classifiable
under PCT headings 84.71 and 84.73).
TABLE
S. No. Category of persons Value addition
(1) (2) (3)
1
[ ]
2. Assemblers 5%
3. Wholesalers and distributors 5%
4. Retailers 5%
1 S.No. 1 and entries relating thereto “1. Commercial importers 10%” omitted by Notification No. SRO 590(I)/2012, dated June
1, 2012 w.e.f. June 2, 2012.
___________

S.R.O. 992(I)/2005, dated September 21, 2005.– In exercise of the powers conferred by clause
(b) of sub-section (1) of section 8 of the Sales Tax Act, 1990, the Federal Government is pleased to direct
that no registered person engaged in the export of goods specified below shall, either through zero-
rating or otherwise, be entitled to deduct or reclaim input tax paid in respect of stocks of such goods
acquired up to 5th June, 2005, if not used for the purpose of exports made up to the 1[31st December],
2005, namely:–
(a) textile and textile articles;
(b) leather and articles thereof;
(c) carpets;
(d) surgical goods;
(e) sports goods; and
(f) inputs of the goods specified in clauses (a) to (e).
2. This notification shall take effect from the 6th day of June, 2005.
Explanation.– For the purpose of any reference or interpretation under this notification, the
description and classification of goods specified in Notification No.S.R.O.621(I)/2005, dated the 17 th June,
2005, shall be applicable.
1 Substituted for “30th September” by Notification No. SRO. 487(I)/2006, dated May 26, 2006 and shall be deemed always to
have been so made on 21st September, 2005.
___________

S.R.O. 549(I)/2006, dated June 5, 2006.– In exercise of the powers conferred by clause (b) of
sub-section (1) of Section 8 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that
no input tax adjustment shall be admissible to the registered persons making taxable supply of locally
produced coal (PCT heading 27.01). ___________

S.R.O. 561(I)/94, dated June 9, 1994.– In exercise of the powers conferred by sub-section (1) of
Section 13 of the Sales Tax Act, 1990, and in supersession of this Ministry's Notification No. SRO
 70

580(I)/91, dated the 27th June, 1991, the Federal Government is pleased to direct that all supplies made
by manufacturers or producers of industrial units which are set up in the North West Frontier Province
and the Province of Baluchistan (except Hub Chowki area) between the 1st July 1991, and the 30th June,
1994, shall be exempt from the tax payable under the said Act for a period of five years from the date
the industry is set up:
Provided that this exemption shall also be available to such units which have opened letters of
credit before the 30th June, 1994, for import of machinery or have firmed up financial arrangements
with the banks or financial institutions before the said date for the new units to be set up upto the 30th
June, 1[1996]:
Provided further that these letters of credit or firmed up financial arrangements with the banks
or financial institutions are registered with the Central Board of Revenue before the 15th July, 1994 by
such units and the Board, after verifying the facts will intimate to the applicant in writing whether he is
entitled to enjoy exemption under this notification or otherwise.
2
[Provided further that, this exemption shall be available for a maximum period of five years to
such new capital intensive units costing one billion rupees or more which come into commercial
production from the 17th October, 1994, to the 31st December, 2000 shall ceased to be available after
30th June, 2001, irrespective of the date on which any unit came into commercial production] 3[subject
to the condition that letters of credit for import of machinery are established or financial arrangements
for setting up the unit are made with the banks or financial institutions before the 1st July, 1996].
Explanation: For the purpose of this Notification, the expression “set up” shall mean the date on
which the industrial unit commences its production including trial production which date shall be
intimated, in writing, by the manufacturer to the Assistant Collector of Sales Tax having jurisdiction in the
area at least fifteen days before commencing such production but shall not include the date of
expansion, balancing, modernisation or replacement of such industry.
1 Substituted for the figure “1995” by Notification No. SRO 612(I)/94, dated June 14, 1994.
2 Proviso inserted by Notification No. SRO 1131(I)/94, dated November 22, 1994.
3 Words etc. inserted by Notification No. SRO 475(I)/96, dated June 13, 1996.
___________
S.R.O. 77(I)/95, dated January 19, 1995.– In exercise of the powers conferred by sub-section (1)
of Section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that supplies of end
products made by the manufacturers or producers of all such industrial units, excluding those specified
in the Table below, which are not already in existence till the date of issue of this notification and have
been set up in the Special Industrial Zones, to be notified later by the Federal Government, shall be
exempt from the sales tax payable under the said Act for a period of eight years from the date the
industrial unit is set up:
Provided that exemption under this notification shall be available to only such industrial units
which have opened letters of credit for the import of plant and machinery upto 1[31st January, 1996]:
Provided further that such industrial unit commences its commercial production upto the 2[31st
December, 2002].
Explanation.- For the purposes of this notification, the expression “set up” shall mean the date
on which the industrial units commences its production, including trial production which date shall be
intimated, in writing, by the manufacturer or producer to the Assistant Collector of Sales Tax having
jurisdiction in the area at least fifteen days before commencing such production but shall not include the
date of expansion, balancing, modernization or replacement of such unit.
TABLE
S. No. List of Industries.
1. 2.
1. Arms and Ammunition
 71

2. Security Printing, Currency and Mint

3. High explosive
1 Substituted for “30th June, 1996” by Notification No. SRO 87(I)/96, dated January 30, 1996. Nothing in this notification shall
affect or in any way prejudice the industrial units whose cases are sub judice and the Federal Government shall decide such
cases in accordance with the verdict of the apex Court.
2 Substituted for figure and words etc. “30th June, 1999” by Notification No. SRO 32(I)/2002, dated January 18, 2002.
4. Radioactive substance
5. Alcohol except industrial alcohol
6. Cotton ginning
7. Spinning except as part of integrated textile unit
8. Sugar (white) manufacturing
9. Flour milling
10. Steel re-rolling and furnace
11. Tobacco industry
12. Ghee or Vegetable Oil industry
13. Plastic bags including Polypropylene and Polyethylene
14. Beverage excluding fruit juices
15. Polyester industry
16. Automobile assembly
17. Cement industry.
___________

S.R.O. 941(I)/95, dated September 26, 1995.-- In exercise of the powers conferred by sub-
section (1) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt sales
tax as is in excess of 12% ad val on the import of newsprint having grammage of not less than 36 gsm
and not more than 57 gsm, imported by the publishers of newspapers and periodicals, subject to
production of a certificate from the Ministry of Information or an Officer of agency authorized by the
said Ministry in this behalf.
___________
S.R.O. 839(I)/98, dated July 23, 1998.– In exercise of the powers conferred by clause (a) of sub-
section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt the
input tax on agricultural tractors falling under heading No. 8701.9019 of the First Schedule to the
Customs Act., 1969, ( IV of 1969) subject to the following conditions, namely:-
(a) This exemption of input tax paid by a recognized manufacturer of agricultural tractor
registered under the Sales Tax Act, 1990 shall be allowed only by way of refund to the said
manufacturer;
(b) The registered manufacturer of agricultural tractor shall file prescribed monthly sales tax
return for the exempt output and shall also claim, on that return the refund of input tax paid
by him as is exempted under this notification ;
(c) Input at tax shall not be claimed on goods specified under the Federal Government’s
notification No. S.R.O. 578(I)/98, dated the 12th June, 1998;and
(d) The manufacturers shall sell exempt agricultural tractors against proper tax invoice with
zero sales tax 1[ ].
2. The refund of the input tax shall be allowed within thirty days of the filing of return in
the manner prescribed in the Sales Tax Refund Rules, 1998.
1 Words “at a price agreed with the Federal Government” omitted by Notification No. SRO 356(I)/2007, dated April 28, 2007.
___________
 72

S.R.O. 628(I)/2000, dated September 6, 2000.– In exercise of the powers conferred by clause (a)
of sub-section (2) of section 13 of the Sales Tax Act, 1990, read with sub-section (3) of the said section,
the Federal Government is pleased to direct that the goods imported for exclusive use of M/s. Pak Arab
Refinery Limited (PARCO)’s Mid Country Refinery Project (MCRP), in terms of Article 8 of the
Implementation Agreement signed between the Government of Pakistan and the Emirate of Abu Dhabi,
shall, with effect from the 3rd October, 1997, be exempt from payment of sales tax leviable thereon
subject to the condition that these goods shall be used exclusively for the said project and shall not be
sold or otherwise disposed without payment of sales tax due thereon.
___________

S.R.O. 390(I)/2001, dated June 18, 2001.– In exercise of the powers conferred by section 19 of
the Customs Act, 1969 (IV of 1969), sub-sections (3A) and (6) of section 3, clause (b) of sub-section (1) of
section 8, clause (a) of sub-section (2) of section 13 and section 71 of the Sales Tax Act, 1990, the Federal
Government is pleased to exempt customs-duty leviable under the First Schedule to the Customs Act,
1969 (IV of 1969), and sales tax on the import or, as the case may be, on the supply of cellular telephone
sets (hand-held sets) to the extent that the combined effect of both the levies shall be 1[one] thousand
rupees per such set, hereinafter called the said amount, subject to the following conditions, namely:–
(i) No customs-duty or sales tax shall be collected on such cellular telephone sets at the
time of import or, as the case may be, at the time of supply, but the said amount will be
charged, collected and paid by the cellular company operator at the time the sets are
presented to the cellular company operator for activation or energization;
2
[(ii) ]
(iii) the cellular company operator shall, if not already registered, obtain registration under
the Sales Tax Act, 1990;
(iv) no cellular telephone set shall be activated or energized by the cellular company
operator without charging and collecting the said amount;
3
[(v) the said amount shall also be charged, collected and paid on every new
activation or energization done by the cellular company operator;]
4
[(vi) the liability to charge, collect and pay the said amount shall be on the cellular
company operator and the amount due under this notification in respect of all sets
energized or activated in a month shall be deposited by such company along with its
monthly return relating to services provided as due in the next month;]
(vii) the cellular company operator shall maintain proper records, whether in electronic form
or otherwise, of all the sets energized or activated after payment of the aforesaid amount
for a period of five years, and such records shall be produced for inspection, audit or
verification as and when required by an officer authorised by the Collector of Sales Tax, and
such officer shall not ask for proof of import of cellular telephone sets activated or
energized; and
(viii) no adjustment of input tax shall be admissible to the cellular company operator
or the buyer against the amount chargeable and payable under this notification.
Explanation.– For the purposes of this notification, a cellular telephone set (hand-held set)
includes one battery and a battery charger identifiable for use in connection with such mobile telephone
set; provided that the amount payable under this notification shall not be effected on the ground that
such battery or battery charger has not been presented or is not accompanied with such telephone set
at the time of activation or energization.
5
[Explanation 2.– For the purpose of condition (v), the expression "new activation or
energization" means a new connection or number given by the cellular company operator but does not
include a change in number given to a customer due to change in package or his location in Pakistan.]
 73

1 Substituted for “two” by Notification No. SRO. 499(I)/2004, dated June 12, 2004.
2 Condition (ii) omitted by Notification No. SRO. 606(I)/2002, dated September 10, 2002.
3 Condition (v) substituted by Notification No. SRO. 687(I)/2001, dated October 3, 2001.
4 Clause (vi) substituted by Notification No. SRO. 155(I)/2008, dated February 21, 2008.
5 Explanation 2 inserted by Notification No. SRO. 687(I)/2001, dated October 3, 2001.
_______________

S.R.O. 208(I)/2002, dated April 5, 2002.– In exercise of the powers conferred under clause (a) of
sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt the
substances registered as drugs under the Drugs Act, 1976, (XXXI of 1976), specified in the Table below,
from the whole of sales tax leviable thereon:–
TABLE
S. No. Drug/Medicine
Anaesthetics
1. ether, anaesthetic Liquid for inhalation
2. Enflurane Inhalation
3. Halothane Liquid for inhalation
4. Ketamine 50 mg/ml inj. (as hydrochloride)
5. Propofol 10 mg/ml inj.
6. Thiopental 500 mg powder for inj. (sodium salt)
7. Bupivacaine 0.25% & 0.5% (hydrochloride) inj.
8. lignocaine 1% & 2% (hydrochloride) inj. 5% (hydrochloride) inj. for
spinal anesthesia 2% & 4% (hydrochloride) topical
solution, 2% (hydrochloride) gel.
9. lignocaine + epinephrine 1% (hydrochloride) + epinephrine 1:100 000 inj., 2%
(hydrochloride) + epinephrine 1:200 000 inj. 2%
(hydrochloride) + epinephrine 1:80 000 dental cartridge.
10. atracurium 25 & 50 mg inj. (besylate)
11. pancuronium 4 mg inj. (bromide)
12. suxamethonium 100 mg inj. (chloride)
13. vecuronium 4 mg & 10 mg inj. (bromide)
14. atropine 1 mg inj. (sulfate)
Analgesics, anatipyretics, non-steroidal
anti-inflammatory drugs and drugs
used to treat gout.
15. buprenorphine 0.324 mg inj. (as hydrochloride)
0.216 mg sublingual tab. (as hydrochloride)
16. morphine 10mg & 30mg slow release tab./caps.
10mg & 15mg/ml inj. (sulfate or hydrochloride).
17. pentazocine 30mg inj. (lactate)
25mg tab. (hydrochloride)
1
18. pethidine [50 mg/2ml] inj. (hydrochloride)
19. acetylsalicylic acid (aspirin) 75mg, 100mg & 300mg tab.
20. diclofenac 25mg, 50mg, 75mg & 100mg tabs/caps (soldium,
Potassium)
75mg/3ml inj. (sodium)
 74

21. lbuprofen 200, 400 & 600 mg tablet

100mg/5ml susp
1 Substituted for “50mg/ml” by Notification No. SRO 432(I)/2002, dated July 5, 2002.
22. paracetamol (acetaminophen) 500mg tablets
120mg/5ml syrup/suspension.
Antiallergics and drugs used in
anaphylaxis
23. adrenaline 1mg inj. (hydrochloride)
24. chlorpheniramine 4mg tablet (maleate)
2mg/5ml syrup (maleate)
10mg/ml inj. (maleate).

25. dexamethasone 0.5mg tab.

4mg & 20mg inj. (as sodium phosphate)

26. hydrocortisone 100mg, 250mg inj. (as sodium succinate)

ANTI-EPILEPTICS

27. carbamazepine 200 mg tab.

28. ethosuximide 250 mg capsule/tablet

250 mg/5ml syrup.

29. phenobarbitone 30 mg tab

200 mg/ml inj.

30. phenytoin 100mg tab./capsule (sodium)

30mg/5ml syrup (sodium)

31. sodium valproate 100 mg, 200mg, 300mg & 500mg tab
200 mg/5ml & syrup
ANTI-INFECTIVE DRUGS
32. albendazole 200 mg tablet
100 mg/5ml susp.
33. pyrantel 250 mg tab. (pamoate)
250 mg/5ml susp. (pamoate)
34. amoxicillin 250 & 500 mg capsule/tablet (as trihydrate).
125 & 250 mg/5ml syrup (as trihydrate)
250 mg & 500 mg Inj.
35. ampicillin 250 & 500 mg tab/cap (as anhydrous/ trihydrate)
500mg inj. (as sodium salt).
36. amoxicillin + clavulanate potassium 125mg + 250mg, 125mg + 500mg & 875mg + 125mg
tablet
100 mg + 500 mg, 200mg + 1000mg inj.
31mg + 125mg/5ml syrup.
37. amikacin 250 & 500 mg inj. (as sulphate)
38. benzylpenicillin 5 Lac i.u. & 10 Lac i.u. inj (sodium/potassium)
39. cefazolin 250, 500 & 1gm inj (as sodium salt)
40. ceftazidime 500 mg & 1gm inj.
41. ceftriaxone 250, 500mg & 1gm inj. (as sodium salt).
 75

42. ceforanide 500mg vial

43. cefotaxime 250mg & 1gm inj. (as sodium salt)

44. ceftizoxime 250, 500mg & 1gm inj. (as sodium salt)

45. cefixime 1
[100] mg/5ml suspension
400mg cap.

46. cephalexin 250 & 500mg cap

125 mg/5ml & 250mg/5ml syrup.

47. Cefuroxime 125, 250 mg tab. (as axetil)

48. cephradine 250 & 500 mg cap

125 mg/5ml & 250 mg/5ml syrup
250, 500 mg & 1 gm inj.

49. chloramphenicol 250 mg capsule

125mg/5ml syrup (as palmitate)
1% eye ointment
0.5% eye drops

50. ciprofloxacin 1gm inj. (as sodium succinate)

250 & 500mg tablet/cap. (as hydrochloride)
2
51. clindamycin [Inj. Clindamycin (as phosphate) 150 mg, Syrup
Clindamycin (as palmitate) 75 mg]
52. cloxacillin 250 mg cap (sodium)
125 mg/5ml syrup (sodium)
250 mg inj. (sodium)
53. co-trimoxazole (sulphamethoxazole + 400mg + 80mg, 800mg + 160mg tab.
trimethoprim) 200mg + 40mg/5ml suspension
400mg + 80mg/5ml injection.
54. erythromycin 250 & 500mg tablet (as stearate)
200mg/5ml suspension (as ethyl succinate)
500mg inj. (as lactobionate)
55. gentamicin 40 & 80mg inj. (as sulfate)
0.3% eye drops/ointment
56. metronidazole 200, 400mg tab
200 mg/5ml suspension (as benzoate)
500 mg/100ml infusion
57. nalidixic acid 500 mg tablet
300 mg/5ml syrup.
58. nystatin 500,000 IU tab
100,000 IU/ml drops
100,000 IU pessaries
59. ofloxacin 200 mg tab. (as hydrochloride)
200 mg/100ml Inj.
60. phenoxymethylpenicillin/penicillin V 250 & 500mg tab. (potassium salt)
125 mg/5ml syrup
1 Substituted for the figure “200” by Notification NO. SRO 432(I)/2002, dated July 5, 2002.
2 Substituted for “300 & 600 mg inj. (as hydrochloride)” by Notification No. SRO 432(I)/2002, dated July
5, 2002.
 76

61. procaine benzylpenicillin 1

[1 lac + 3 lac] IU inj.
62. pipemidic acid 400 mg. Tab.
63. sulphasalazine 500 mg tab
64. ethambutol 400mg tab. (hydrochloride)
65. 2
[ethionamide] 250 mg tab.
66. isoniazid 50, 100 & 300 mg tablet
50mg/5ml syrup
67. pyrazinamide 500 mg tab.
68. rifampicin 150, 300, 450 & 600 mg tab/cap
100mg/5ml syrup
69. refampicin + isoniazid 150 mg + 100 mg tab./cap.
300 mg + 150 mg tab./cap.
450 mg + 300 mg tab./cap
70. refampicin + isoniazid + pyrazinamide 150mg + 75mg + 400mg tab
71. rifampicin + isoniazid + pyrazinamide 150mg + 150mg + 500mg tablet
72. rifampicin + isoniazid + pyrazinamide + 150mg + 75mg + 400mg + 275mg tab.
ethambutol.
73. ethambutol + isoniazid. 400mg + 150mg tab
74. streptomycin 1g inj. (as sulphate).
75. thiocetazone 50mg tab.
76. thioacetazone + isoniazid 50 mg + 100 mg tab.
150 mg + 300 mg tab.
77. amphotericin B 50 & 100 mg tab.
78. fluconazole 50mg, 150mg & 200mg Cap.
50mg/5ml Syrup &
2mg/ml influsion
79. diloxanide (furoate) + metronidazole 250 mg + 200mg, 500 mg + 400mg tablet
250mg + 200mg/10ml Susp.
80. metronidazole 200 & 400 mg tab.
200 mg (as benzoate)/5ml suspension.
500mg/100ml infusion
81. acyclovir 200 mg tab
250mg inj. (sodium).
3% eye oint
82. interferon alpha-2a & 2b 3 MIU/5MIU/10MIU inj.
83. Ribavirin 100mg/200mg/400mg/ Caps.
500mg/600mg tab. &
50mg/5ml, 100mg/5ml Syrup
1 Substituted for “1 & 3 million” by Notification No. SRO 432(I)/2002, dated July 5, 2002.
2 Substituted for “enthionamide” by Notification No. SRO 432(I)/2002, dated July 5, 2002.
84. amodiaquine 150mg tab
150mg/5ml syrup
 77

85. chloroquine 150mg tab (as sulphate or phosphate)

50mg/5ml syrup &
200 mg/5ml inj.
86. primaquine 7.5 mg tab.
87. pyremethamine + sulfadoxine 25mg + 500mg tablet
88. quinine 200mg tab. (sulphate)
300mg tab. (bisulphate)
600mg Inj (Dihydrochloride)
Antiparkinsonism drugs
89. benserazide + levodopa 50+200 mg tab.
90. benzhexol 2mg tab
91. carbidopa + levodopa 25+250 mg tab.
92. procyclidine 5 mg. tab.
Haematinics
93. ferrous sulphate Eq to 60 mg iron tab., eq. To 25mg iron/ml syrup (as
sulfate)
94. iron hydroxide polymaltose 100mg Tabs & 50mg Syrup
Anticoagulants
95. heparin 1000, 5000 & 20,000 IU inj. (sodium)
96. warfarin 1 & 5 mg tab. (sodium)
Vitamin-K derivative
97. phytomenadione 10mg tablet,
10 mg inj.
BLOOD PRODUCTS AND PLASMA
SUSTITUTES
98. albumin (human) 5% & 25% solution for inj.
99. dextran 40 & 70 Infusion
ANTI-HAEMOPHILIC FACTORS
100. polygeline 35% inj.
CARDIOVASCULAR DRUGS
101. amiodarone 200 mg tab.
102. atenolol 50 & 100 mg tab.
103. bretylium 500 mg inj. (tosylate)
104. captopril 25 & 50 mg tab
105. digoxin 500 mcg inj.
250 mcg tab
50 mcg/ml oral solution
106. diltiazem 30, 60, 90 & 180 mg tab. (hydrochloride)
10 & 50 mg inj.
107. dobutamine 250 mg inj.
108. dopamine 200 & 400 mg inj. (hydrochloride)
109. enalapril 10 & 20 mg tab
100 mg inj.
 78

110. hydralazine 25 mg tab.

111. isoprenaline 30 mg tab.
1 mg inj.
112. isosorbide dinitrate 5 mg tablet, sublingual 10 mg tab.
113. lisinopril 5, 10 & 20 mg tab
114. methyldopa 250 & 500 mg tab.
250 mg inj.
115. nifedipine 10 & 20 mg tab./cap.
116. nitroglycerin (glyceryl trinitrate) 500 mcg tablet sublingual 2.6 & 6.4 mg tab
25 mg patches
1 mg/ml I.V. infusion
117. prazosin 200 mg tab.
118. procainamide 1 & 2 mg tab.
250 mg tab
100 mg inj.

119. propranolol 10, 40, 80 & 160 mg tab

1mg inj.

120. quinidine 200 mg tab. (sulphate)

121. sodium nitroprusside 50 mg inj.
1
122. streptokinase [1.5 IU million inj. & 0.75 million IU inj.]
123. verapamil 40, 80 & 240 mg tab.
5mg inj.
Dermatological drugs (topical)
124. betamethasone + neomycin 0.1% + 0.5% ointment, cream, lotion
125. benzyl benzoate 25% Lotion

126. silver sulphadiazine 1% cream

127. clotrimazole 1% cream

Diuretics

128. amiloride 5 mg tab. (hydrochloride)

129. bendroflumethiazide 2.5 mg tab.

130. furosemide 20 & 40 mg tab.

131. mannitol 10% & 20% inj.

132. spironolactone 25 & 100 mg tab.

1 Substituted for “100,000 IU inj.” by Notification No. SRO 432(I)/2002, dated July 5, 2002.
Gastrointestinal drugs

133. cimetidine 200mg & 400mg tab

200mg inj
400mg/5ml susp.
 79

134. ranitidine 150mg, 300mg tablet

50mg/2ml inj.
75mg/5ml syrup

135. famotidine 10mg, 20mg & 40mg tablet

10mg/5ml susp.

136. octreotide acetate 0.05mg & 0.1mg inj

Electrolytes supplements

137. potassium chloride 7.4% inj

138. oral rehydration salt Components to reconstitute 1 litre glucose/electrolyte

solution: sodium chloride 3.5g, trisodium citrate
dihydrate 2.9g, potassium chloride 1.5g, glucose 20 g.

Hormones, other endocrine drugs and

contraceptives
139. bromocriptine 2.5 mg tab.
140. carbimazole 5mg tab
141. clomifene 50 mg tablet
142. glibenclamide 5 mg tab.
143. human chorionic gonadotrophic 1000 & 5000 IU inj.
hormone
144. hydroxyprogesterone caproate 250 & 500 mg inj.
145. insulin compound, zinc/isophane 100 IU/inj.
146. insulin regular 100 IU
147. motformine 500 mg tab. (hydrochloride)
148. potassium iodide 60 mg tablet
149. prednisolone 5mg tablet
0.2% eye drops
150. propylthiouracil 50 & 100 mg tab.
151. thyroxine 50 & 100 mg tab.
152. vasopressin/ADH 50mcg tab (as sodium anhydrous)
153. erythropoetin 20 IU/inj
1000 IU, 2000 IU, 3000 IU, 4000 IU and 100000 IU.
154. tuberculin PPD Inj.
155. anti-D immunoglobulin Inj.
156. antivenom sera Inj.
157. diphtheria antitoxin inj Inj.
158. hepatitis B inj. Inj.
159. immunoglobulin Inj.
160. tetanus antitoxin Inj.
161. tetanus toxoid Inj.
162. BCG (dried) vaccine Inj.
163. diphtheria-pertussis Inj.
164. tetanus vaccine Inj.
165. measles-mump rubella vaccine Inj.
166. measles vaccine Inj.
167. poliomyelitis vaccine (live attenuated Oral solution
 80

168. tetanus vaccine Inj.

169. typhoid vaccine. Inj.
170. hepatitis B vaccine Inj.
171. meningococcal vaccine Inj.
172. rabies vaccine Inj.
173. cyclosporin 50 mg/ml inj.
25 & 100 mg cap.
OPHTHALMOLOGICAL PREPARATIONS
174. ketoconazole 2 mg/ml eye drops
175. polymixin B sulphate + bacitracin zinc 10,000 IU + 500 IU/gm oint.
176. sulfacetamide 10%, 20% & 30% eye drops
10% eye oint
177. acetazolamide 250 mg tab
178. betaxolol 0.5% eye drops (hydrochloride)
179. levobunalol 0.5% eye drop)
180. pilocarpine 1%, 2% & 4% eye drops.
181. atropine 1% & 2% eye drops.
182. hamotropine 2% eye drops
183. phenylepherine 0.12% eye drops
184. tropicamide 1% eye drops
185. naphazoline eye drops
186. oxybuprocaine 0.4% eye drops
187. flourescine sodium Eye drops
OXYTOCICS AND ANTIOXYTOCICS
188. ergometrine 0.25mg tab. (1[methyl ergometrine] maleate) 200
mg inj.
189. oxytocin 5 i.u & 10 i.u inj.
PERITONEAL DIALYSIS SOLUTION
190. intraperitonial dialysis parental solution
(of appropriate composition)
191. haemodialysis concentrate
PSYCHOTHERAPEUTIC DRUGS
192. amitryptyline 10, 25 & 50 mg tab.
193. chlorpromazine 10, 25, 50 & 100 mg tab
25 mg/5ml syrup
50 mg inj.
194. clomipramine 10 & 20 mg cap. (hydrochloride)
195. diazepam 2, 5 & 10 mg tab
1 Substituted for “hydrogen” by Notification No. SRO 432(I)/2002, dated July 5, 2002.
196. Fluphenazine 25 mg inj (decanoate)
197. haloperidol 0.25, 1.25 & 5 mg tab
5 mg inj.
2mg/ml oral drops
198. imipramine 25 mg tab
199. lithium carbonate 400 mg tab
 81

DRUGS ACTING ON THE RESPIRATORY

TRACT
200. aminophylline 100 & 200 mg tab.
250 mg inj
201. baclomethasone 250 mg aerosol (dipropionate)
202. salbutamol 2 & 4 mg tab.
2mg/5ml syrup
100 mcg/dose aerosol
50mcg/5ml inj.
5mg (as sulfate)/ml respiratory solution for use in
nebulizers.
203. theophylline 180 & 270 mg tab 350 mg tab. (S.R)
120 mg/5ml syrup.
SOLUTIONS CORRECTIN WATER
ELECTROLYTE AND ACIDE BASE
DISTURBANCES
204. dextrose + saline 10% + 0.9% IV solution
5% + 0.45% IV solution
4.3% + 0.18% IV solution
5% + 0.3% IV solution
205. dextrose 5%, 10% & 25% IV solution
206. normal saline 0.9% & 0.45% IV solution
207. potassium chloride 500 mg tab. 7.4% IV solution
208. ringer’s lactate IV solution
1
209. sodium bicarbonate [8.4]% IV solution
ANTIDOTES AND OTHER SUBSTANCES
USED IN POISONING
210. charcoal, activated Powder
211. desferrioxamine 500 mg inj. (mesylate)
212. dimercaprol 100 mg inj.
213. flumazenil 500 mcg inj.
214. magnesium sulphate 50% inj.
215. naloxone 0.04 & 0.4 mg inj. (hydrochloride)
216. neostigmine 15mg tab. (bromide)
0.5mg & 2.5mg inj. (methyl sulphate)
217. obidoxime 250 mg inj. (chloride)
218. penicillamine 125 & 250 mg capsule or tablet
219. physostigmine 1 mg inj. (salicylate)
220. protamine 10 mg inj. (sulphate)
221. prussian blue Powder for topical use
1 Substituted for “0.7” by Notification No. SRO 432(I)/2002, dated July 5, 2002.
222. sodium calcium edetate 1 gm inj.
223. sodium nitrite 300 mg inj.
224. sodium thiosulfate 500 mg/ml inj. in 50 ml ampoule
ANTI-NEOPLASTICS IMMUNOSOT PRESSIVES
AND DRUGS USED IN PALLIATIVE CARE
225. asparaginase 1
[5,000] iu inj.
 82

226. aminogluthemide 250mg tab.

227. azathioprine 50mg tablet
100 mg inj. (sodium salt)
228. bleomycin 15 mg inj. (sulphate)
229. busulphan basiliximab 0.5mg tab
230. calcium folinate 15 mg tablet
2
[25] mg inj.
231. chlorambucil 2 mg tab.
232. cisplatin 10, 25 & 50 mg inj.
233. cyclophosphamide 50 mg tablet
200, 500 mg & 1 gm inj.
234. cytarabine 100 mg inj.
235. dacarbazine 200 mg inj.
236. dactinomycin 0.5 mg inj.
237. di-ethylstilboestrol diphosphate sodium 1 mg tab.
238. doxorubicin 10 & 50 mg inj. 3[as doxorubicin hydrochloride]
239. etoposide 100 mg cap
100 mg inj
240. flutamide 100 mg inj.
250 mg tab
241. 5-fluorouracil 250 mg inj. 500 mg inj.
200 mg caps.
242. hydroxyurea 500 mg cap.
243. fosfamide 500 mg, 1 gm & 2 gm inj.
244. lomustine 40mg caps.
245. medroxyprogesterone 100 mg tab.
500 mg caps
150 mg inj. 500 mg inj.
246. megesterol acetate 40 mg, 160 mg tab
247. melphalan 100 mg inj
248. mercaptopurine 50 mg tablet
249. Methotrexate 2.5, 5 & 10 mg tab.
5, 50 & 500 mg inj.

1 Substituted for the figure “10,000” by Notification No. SRO 432(I)/2002, dated July 5, 2002.
2 Substituted for “30” by Notification No. SRO 432(I)/2002, dated July 5, 2002.
3 Words inserted by Notification No. SRO 432(I)/2002, dated July 5, 2002.
250. mitomycin 2mg & 10mg inj
251. mitozantrone 20mg & 30mg vials
252. procarbazine 50mg cap. (hydrochloride)
253. tamoxifen 10 & 20 mg tab
254. vincristine 1 & 5 mg inj. (sulfate)
255. vinblastine 10mg vial
256. vinorelbine 10 & 50 mg inj.
2. This notification shall come into force at once and shall be deemed to have taken effect from
the 21st March, 2002.
 83

________________

S.R.O. 246(I)/2004, dated May 5, 2004.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 and section 34A of the Sales Tax Act, 1990, and in supersession of its
Notification No. S.R.O. 500(I)/2003, dated the 7 th June, 2003 the Federal Government is pleased to
exempt the amount of sales tax, additional tax and penalty payable in excess of the amount mentioned
in column (3) of the Table below, by the categories of persons mentioned in column (2) thereof, subject
to the following conditions, namely:–
(a) this notification shall not entitle any person to claim or take refund of any amount of
sales tax already paid by or recovered from him; and
(b) no audit of the record for the period of exemption shall be conducted if the amount of tax is
paid in terms of this notification by the 1[30th June, 2004].
TABLE
Sr. Category of person Extent of exemption
No.
(1) (2) (3)
1. Retailers registered or enrolled before The whole of the amount of sales tax, turnover tax,
the 1st July, 2000. additional tax and penalty payable on supplies made
prior to registration.
2. Retailers registered or enrolled during The whole amount of sales tax, turnover tax,
the period from the 1st July, 2000 to the additional tax and penalty payable on supplies made
day preceding the date of this prior to the 1st July, 2000, and the amount in excess of
notification. two percent of the turnover declared with the Income
Tax authorities for supplies made during the period
from 1st July 2000 to the day preceding the date of
this notification.
3. Retailers who apply for registration or The whole amount of sales tax, turnover tax,
enrolment from the date of this additional tax and penalty payable on supplies made
notification to the 30th June, 2004. prior to the 1st July, 2003 and the amount in excess of
two percent of the turnover declared with the Income
Tax authorities for supplies during the period from the
1st July, 2003 to the date of registration. 2[No audit of
the record for the period prior to registration shall be
conducted where a retailer registers on or before the
30th June, 2004.]
1 Substituted for “20th June, 2004” by Notification No. SRO 525(I)/2004, dated June 21, 2004.
2 Words etc. inserted by Notification No. SRO 525(I)/2004, dated June 21, 2004.
_________________

S.R.O. 645(I)/2005, dated June 30, 2005.– In exercise of the powers conferred under clause (a)
of sub-section (2) of section 13 of the Sales Tax Act, 1990, and in supersession of its Notification No.
S.R.O. 211(I)/2002, dated the 6th April, 2002, the Federal Government is pleased to exempt raw
materials, if imported by or supplied to the recognized manufacturers of pharmaceutical products or
pharmaceutical active ingredients for use in the manufacture of substances registered as drugs under
the Drugs Act, 1976 (XXXI of 1976), from the whole of sales tax leviable thereon.
2. This Notification shall take effect from the 6th June, 2005.
___________
S.R.O. 793(I)/2005, dated August 10, 2005.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt the
 84

import and supply of CKD kits of single cylinder agriculture diesel engines of 12 to 32 HP from the
payment of sales tax leviable thereon.
________________

S.R.O. 1007(I)/2005, dated September 24, 2005.—In exercise of the powers conferred by clause
(a) of sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to
exempt the import and supply of the ingredients of poultry and cattle feed mentioned in column (2) of
the 1[Tables] below with their respective HS Codes as given in the First Schedule to the Customs Act,
1969 (IV of 1969), mentioned in column (3) of the said 1[Tables], from the whole of sales tax chargeable
thereon.
2
[TABLE-I]
S.No. Description of goods HS Code
(1) (2) (3)
1. Rape seed Meal 2306.4900
2. Sunflower Meal 2306.3000
3. Guar Meal 2308.9000
4. Corn Gluton Feed/Meal 2303.1000
5. Residues of starch manufacture and similar residues. 2303.1000
6. Enzymes-other 3507.9000
7. Maize Bran 2302.1000
8. Rice Bran 2302.2000
9. Wheat Bran 2302.3000
10. Other Cereals 2302.4000
11. Bran of Leguminous Plants 2302.5000
12. Groundnut Meal/Cake 2305.0000
13. Oil-cake and other solid residues of Maize (corn) germ 2306.7000
14. Sesame Cake 2306.4900
15. Sesame Meal/other Meal 2306.9000
16. Meat and Bone Meal 2301.2090
17. Double or complex silicates, including aluminosilicates whether or not 2842.1000
chemically defined.
1 Substituted for “Table” by Notification No. SRO 1237(I)/2005, dated December 14, 2005.
2 Substituted for “TABLE” by Notification No. SRO 1237(I)/2005, dated December 14, 2005.
 85

1
[TABLE-II
S. No. Description of goods HS code Grade
1. Fish Meal 2301.2010 —
2. Poultry bi-product Meal 0505.9000 —
2
3. Potassium Lodide [2827.6000] Feed Grade
3
4. Manganese Sulphate [2833.2990] -do-
5. Zinc Sulphate 2833.2600 -do-
6. Zinc Oxide 2817.4000 -do-
7. Copper Sulphate 2833.2500 -do-
8. Ferrous Sulphate 2833.2910 -do-
9. Propionic acid, its salts and esters 2915.5000 -do-
10. DL Methionine 2930.4000 -do-
11. Methionine Hydroxy Analogue (liquid) 2930.4000 -do-
12. Lysine Monohydro Chloride 4[/ sulphate] 2922.4100 -do-
13. Lecithins 2923.2000 -do-
14. Betafin 2923.9000 -do-
15. Arganine 2922.4290 -do-
16. Furazolidone 2934.9910 -do-
17. Threonine 2922.5000 -do-]
5
[18. Mono Calcium Phosphate 2835.2600 Feed Grade
19. Di Calcium Phosphate 2835.2500 Feed Grade
20. Mono Di Calcium Phosphate 2835.2600 Feed Grade.]
1 TABLE-II inserted by Notification No. SRO 1237(I)/2005, dated December 14, 2005.
2 Substituted for “2827.2600” by Notification No. SRO 862(I)/2006, dated August 23, 2006.
3 Substituted for “2833.2900” by Notification No. SRO 862(I)/2006, dated August 23, 2006.
4 Slash and word inserted by Notification No. SRO 477(I)/2009, dated June 13, 2009, w.e.f. June 14, 2009.
5 Sr. Nos. 18, 19 and 20 inserted by Notification No. SRO 862(I)/2006, dated August 23, 2006.
___________
S.R.O. 1065(I)/2005, dated October 20, 2005.– In exercise of the powers conferred by section 19
of the Customs Act, 1969 (IV of 1969), and sub-section (2) of section 13 of the Sales Tax Act, 1990, and in
supersession of its Notification No. S.R.O. 410(I)/2001, dated the 18 th June, 2001, the Federal
Government is pleased to exempt the whole of the customs-duty and sales tax on temporary
importation of goods for subsequent exportation as specified in the Table below subject to the following
conditions, namely:–
(i) this facility shall be available to exporters also registered as manufacturers;
(ii) the importer shall make an application for grant of exemption to the Collector of
Customs, giving full particulars of the goods and the purpose for which they are imported;
(iii) the importer shall submit a bank guarantee or pay order or indemnity bond alongwith
post-dated cheque equivalent to the amount of customs-duty and sales tax otherwise
leviable thereon;
(iv) the importer shall export temporarily imported goods after due processing within one year
which shall be automatically extended upon request once only up to a further period of six
months on payment of one per cent surcharge of C&F value of imported input materials per
month and that the utilization period shall in no case be extended beyond eighteen months;
 86

(v) only such goods, except the goods specified at serial No. 2 of the Table, as are capable of
identification at the time of their re-exportation, shall be exempt from the aforesaid customs
duty and sales tax;
(vi) packing materials, as mentioned in the Table at serial No. 10, may be imported empty
and may be exported filled;
(vii) at the time of importation of goods, the importer shall make a written declaration on the
goods declaration to the effect that the goods are imported for the purposes of this
notification;
(viii) after ascertaining correctness of description, classification and importability
status of goods at the time of import, the same shall be assessed to value in accordance with
the values determined for identical goods cleared for local consumption for the sake of
uniformity;
(ix) at the time of export, the exporter shall make declaration that the goods were imported
for the purposes of this notification, giving particulars of import documents (IGM No. & date,
G.D. No. & date, Cash No. & date, etc.) and at least 20% value addition has been made as
compared to value of goods at the time of import;
(x) the export shall be allowed only if the Assistant Collector or the Deputy Collector,
incharge of export station is satisfied that the goods temporarily imported have been duly
consumed in the manufacture of goods being exported;
(xi) immediately after the re-exportation of goods, the applicant shall produce evidence to
the Collector of Customs concerned that the goods have been re-exported within the
stipulated period. On production of such evidence/declaration, bank guarantee, pay order or
the indemnity bond alongwith post-dated cheque submitted at the time of import shall be
released 1[ ];
(xii) transfer of ownership of temporarily imported goods may be allowed by the Collector of
Customs, or the Additional Collector of Customs concerned, at his discretion, subject to the
transfer of title of bank guarantee or pay order or indemnity bond alongwith post-dated
cheque submitted at the time of import:
Provided that the transfer of ownership shall be allowed only in cases in which
the imported goods have undergone the manufacturing process to reach an intermediary
product stage;
2
[(xiii) in cases where temporarily imported goods are used in addition to other
imported raw materials on the import of which duties and taxes have been paid and
repayment is admissible on export of ultimately manufactured products, the f.o.b. price for
claiming such repayment shall be the value excluding value of the goods temporarily
imported under this notification;]
(xiv) only such operations as are listed in the Table shall be carried out with the
inputs and raw materials imported under this notification;
1 Words “by the Assistant Collector or Deputy Collector incharge of export station” omitted by Notification No. SRO
1238(I)/2005, dated December 15, 2005.
2 Condition (xiii) substituted by Notification No. SRO 816(I)/2007, dated August 11, 2007.
Condition (xiii)–Substitution.– Condition (xiii) before substitution read as follows:–
“(xiii) in case the goods which are to be exported are manufactured partly from duty-free input goods
imported temporarily under this notification and from duty-paid input goods procured from the local market, the
repayment of duty as drawback shall be admissible on finished goods on the FOB value:
Provided that the amount of drawback is reduced proportionately in a manner that the amount of
customs duty applicable at the 1[rates prevalent at the time of calculation of duty drawback] on the quantity of duty-
free input goods is substracted in respect of items specified in the relevant duty drawback notification;”
1 Substituted for “current rates” by Notification No. SRO 1216(I)/2006, dated December 1, 2006 and shall be deemed to have
always been substituted.
 87

(xv) exemption under this notification shall not be allowed in cases in which physical
inspection of manufacturing becomes necessary for the purposes of such exemption;
(xvi) all the existing licenses and those issued under Chapter XV of the Customs Rules,
2001 shall be deemed to have been issued with immediate effect till the validity of existing
licenses already issued. All liabilities of the said licenses shall be deemed to be their
liabilities under the said rules; and
(xvii) the Collector of Customs, or the Additional Collector of Customs, may refuse
entry of any goods without payment of customs-duty and sales tax if prima facie it appears
to him that such entry is in violation of any of the conditions of this notification.
2. An application under condition (ii) shall be submitted on the following format, namely–
FORM
1. Name of the unit with address_____________________

2. N.T.N. No._____________________________________

3. Sales Tax Registration No._________________________

4. Station of import._______________________________

5. Value of goods exported in the

previous financial year___________________________

6. Description of imported inputs_____________________

7. Description of goods to be exported________________

8. Input and output ratio of entries 6

and 7 above____________________________________

Name and signature of the applicant

TABLE
(1) (2)
1. Materials, excluding fabrics and leather, for manufacturing of—
(a) leather goods and leather garments and sports goods;
(b) garments and textile made-ups including foundation garments; and
(c) furniture, wood ware and fittings.
2. Textile designs, artwork, transparencies (bearing design for textiles) for reproduction of
finished goods.
3. Plush fabrics, nylon, polyester fiber, eyes and nose for use in stuffed toys.
4. Unit soles with heels, soles and heels for manufacture of footwear.
5. Price labels or tags for affixing on finished goods.
6. Trimmings, buttons, belts, fur lining, lining, pads and inter lining material, Velcro tapes,
hangers, special labels, special buttons, rivets, eyelets, buckles, special brand tags, special
thread and other items such as decorative fittings, zippers, locker loops, etc., for use in ready
made garments, foundation garments, textile made ups, footwear and other items
 88

mentioned in this table.

7. Materials for embellishing or decorating goods produced in Pakistan for exportation.
8. Components and sub-components for assembly of—
(a) machinery and parts thereof;
(b) Electrical and electronic equipment and parts thereof;
(c) bicycles;
(d) aluminium-ware, steel ware, kitchen utensils and cutlery, vacuum flasks;
(e) surgical instruments; and
(f) dolls, toys, and games.
9. Forgings of surgical instruments for processing.
10. Packing material (excluding straw, paper, paper cones, glass wool and like material) for
packing of goods.
11. Polypropylene woven and jute bags subject to the condition that such bags bear the particulars of
the Pakistani exporters in permanent print on each bag.
12. Materials for general superficial processes such as elementary repairs, cleaning, removal of
damaged parts, sorting, straining, sifting, clarification, filtering, marking, sealing,
labeling, re-packing, drying, preserving,
refrigerating, chilling, fumigating, greasing, antirusting, protective coating, printing etc.
___________
S.R.O. 1182(I)/2005, dated November 29, 2005.– In exercise of the powers conferred by Clause
(a) of sub-section (2) of section 13 and section 34A of the Sales Tax Act, 1990, the Federal Government is
pleased to direct that the supplies of coal extracted by coal miners in Balochistan made on or prior to the
30th June, 2000, shall be exempt from payment of sales tax, and other liability of additional tax or penalty
whether determined or adjudicated or otherwise due in respect of the said supplies shall be waived.
2. No refund or any amount of sales tax, additional tax or penalty already recovered or paid on
the aforesaid supplies shall be claimed or paid under this notification.
_________________

S.R.O. 1205(I)/2006, dated November 30, 2006.– In exercise of the powers conferred by clause
(a) of sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to
exempt import and supply of iodized salt bearing brand names and trademarks whether or not sold in
retail packing from whole of the sales tax chargeable thereon.
___________

S.R.O. 880(I)/2007, dated September 1, 2007.– In exercise of the powers conferred by clause (a)
of sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt
diagnostic kits or equipment, specified in column (3) of the Table below, falling under the HS Codes
specified in column (2) of that Table, from the whole of sales tax leviable thereon under the Sales Tax Act
1990, namely:–
TABLE
S. NO. PCT HEADING DESCRIPTION
(1) (2) (3)
1 3822.0000 HIV Kits
2 3822.0000 4C Es Trionyx
3 3822.0000 5C Cell control Lnormal
 89

4 3822.0000 Bovine precision multi sera

5 3822.0000 Pregnancy test
6 3822.0000 DNA SSP DRB GenericIC
7 3822.0000 Reticulocyte count (control) Retic C Control
8 3822.0000 Kit for vitamin B12 estimation
9 3822.0000 Ferritin kit
10 3822.0000 HEV (Hepatitis E virus)
11 3822.0000 ID-DA Cell
12 3822.0000 Urine Analysis Strips
13 3822.0000 Albumin bcg
14 3822.0000 Cratinin sysi
15 3822.0000 Ring
16 3822.0000 Detektiion cups
17 3822.0000 ISE Standard
18 3822.0000 Alkaline phosphatase (Alb)
19 3822.0000 Bilirubin kit
20 3822.0000 HDL Cholesterol
21 3822.0000 Ck creatinin kinase (mb)
22 3822.0000 Ck nac
23 3822.0000 Glulcose kit
24 3822.0000 Ammonia Modular
25 3822.0000 Lac
26 3822.0000 Ldh kit (lactate dehydrogenase kit)
27 3822.0000 Urea uv kit
28 3822.0000 Ua plus
29 3822.0000 Tina quant
30 3822.0000 Crp control
31 3822.0000 Aslo tin
32 3822.0000 Proteins
33 3822.0000 Lipids
34 3822.0000 HDL/LDL cholesterol
35 3822.0000 Protein kit
36 3822.0000 U
37 3822.0000 Control Sera
38 3822.0000 Pac
39 3822.0000 Control
40 3822.0000 HCV
41 3822.0000 UIBC (Unsaturated iron binding capacity)
42 3822.0000 U/CSF
43 3822.0000 Inorganic Phosphorus kit
 90

44 3822.0000 Kit amplicon kit (for PCR)

45 3822.0000 Ige
46 3822.0000 Lc hsv
47 3822.0000 Oligo
48 3822.0000 NA/K/CL
49 3822.0000 Hcy
50 3822.0000 Standard 1[or calibrated]
51 3822.0000 Hla B27
52 3822.0000 Liss Coombs
53 3822.0000 Typhoid kit
54 3822.0000 HCV amp
55 3822.0000 Urine test strips
56 3822.0000 Strips for sugar test
57 3822.0000 Blood glucose test strips
58 3822.0000 Kits for automatic cell separator for collection of platelets

59 3822.0000 Elisa 1[or Eclia] Kit

60 3822.0000 PCR kits
61 3822.0000 Immunoblast (western blot test).
62 3822.0000 I.C.T. (Immunochromatographic kit)
63 3822.0000 CBC Reagent (For hematology analyzer) Complete blood count
reagent
2. This Notification shall take effect from the 10th June, 2007.
1 Words inserted by Notification No. SRO 483(I)/2011, dated June 3, 2011 w.e.f June 4, 2011.
___________
S.R.O. 76(I)/2008, dated January 24, 2008.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt the
whole of sales tax chargeable on the supplies made by manufacturers of marble and granite having
annual turnover less than five million rupees even if their annual electricity bill is more than six hundred
thousand rupees.
_______________

S.R.O. 115(I)/2008, dated February 6, 2008.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 read with sub-section (1) of section 71 of the Sales Tax Act, 1990, the
Federal Government is pleased to exempt, for a period of forty years, the whole of sales tax chargeable
on the imports and supply of materials and equipments for construction and operation of Gawadar Port
and development of Free Zone for Gawadar Port and Ship Bunker Oils bought and sold to the ships
calling on/visiting Gawadar Port by the operating companies having concession agreement with the
Gawadar Port Authority subject to the following conditions and procedure, namely,–
A. Conditions and procedure for imports.– (i) This exemption shall be admissible only to these
companies 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 Gawadar Port and development of Free Zone for Gawadar
Port. The authorized officer of that Ministry shall furnish all relevant information online to
 91

Pakistan Customs Computerized System (PACCS) 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 PACCS is not operational, the Project Director or
any other person authorized by the Collector in this behalf shall enter the requisite
information in the Customs Computerized System on daily basis, whereas entry of the data
obtained from the customs stations which have not yet been computerized shall be made on
weekly basis, provided that this condition shall not apply to ship bunker oils; and
(iii) The goods so imported shall not be sold or disposed of without prior approval of the FBR
and payment of sales tax leviable at the time of import, 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 these
companies which hold Concession Agreement;
(ii) for claiming exemption on goods which are otherwise taxable in Pakistan, the operating
companies will purchase the materials and equipments for the construction of Gawadar Port
and development of Free Zone for Gawadar Port from the sales tax registered persons only;
(iii) invoice of the exempt supply, containing the particulars required under section 23 of the
aforesaid Act, shall for each supply be issued by the registered person to the operating
company mentioning thereon that the said invoice is being issued under this notification;
(iv) a monthly statement summarizing all the particulars of the supplies made in the month
against invoices issued to the operating companies shall be prepared in triplicate by the
registered persons making the exempt supplies and shall be signed by the authorized person
of the registered person. 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.
Annex-I
Header Information
NTN/FTN of Importer Approval No.
(1) (2)
Details of materials and equipments (to be filled in by the Goods imported (Collectorate of import)
authorized officer of the Ministry of Ports and Shipping)

HS Description Specs Customs Rate WHT Quantity UOM Quantity Collectorate CRN/ Date
code duty rate of imported Mach of
(applicable) sales No. CRN/
tax Mach
No.
 92

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
NOTE1:– Before certifying, the authorized officer of the Ministry of Ports and Shipping shall ensure that
the goods are genuine, bona fide requirement for construction and operation of Gawadar Port and
development of Free Zone for Gawadar Port and that the same are not manufactured locally.
Signature ________________________
Designation ________________________
NOTE2:– In case of clearance through Pakistan Customs Computerized System (PACCS), 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 (IV of 1969)
_______________

(CUSTOMS/SALES TAX/FEDERAL EXCISE 1[/INCOME TAX])

S.R.O. 326(I)/2008, dated March 29, 2008.– In exercise of the powers conferred by section 19 of
the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990,
2
[ ] sub-section (2) of section 16 of the Federal Excise Act, 2005, 3[and clause 56 of Part-IV of the Second
Schedule to the Income Tax Ordinance, 2001,] the Federal Government is pleased to exempt from the
whole of customs duties, sales tax and federal excise duty 4[and income tax] leviable on all the goods
imported into and exported from an Export Oriented Unit subject to the provisions of the Export
Oriented Units and Small and Medium Enterprises Rules, 2008.
1 Slash and words inserted by Notification No. 1366(I)/2012 dated November 8, 2012.
2 Word “and” omitted by Notification No. 1366(I)/2012 dated November 8, 2012.
3 Words etc. inserted by Notification No. 1366(I)/2012 dated November 8, 2012.
4 Words inserted by Notification No. 1366(I)/2012 dated November 8, 2012.
___________

S.R.O. 483(I)/2008, dated May 28, 2008.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt the
whole of sales tax chargeable on the supply and import of machinery and equipment, specified in the
Table below, imported by financial services providers authorized by State Bank of Pakistan under the
Asian Development Bank Program for Improving Access to Financial Services Program (IAFSP):
TABLE
S. No. Description of goods H.S. Code
(1) (2) (3)
1. Networking equipment:
(a) ISDN equipment 8517.6910
(b) DSL equipment 8517.6970
(c) Data switches – ATM frame relay and VOIP switches 8517.6970
(d) Network switches and modules 8517.6970
(e) Routers-modules and interface cards and interface converters 8517.6930
(f) Firewalls modules and interface cards, encryption engines. 8517.6990
(g) VSAT equipment 8517.6990
(h) IDS/IPS, VPN concentrators modules and interface cards 8517.6990
(i) VOip or call centers equipments 8517.6990
(j) Danawidth accelerators and its accessories. 8517.6990
(k) Synchronous digital hierarchy (SDH) node equipment and its 8517.6250
accessories.
2. Equipment for third party content provisioning across, networks:
(a) Voice frequency telegraphy 8517.6210
(b) Modems 8517.6220
 93

(c) High bit rate digital hierarchy system (SDH) 8517.6230

(d) Digital Loop Carrier System (DLC) 8517.6240
(e) Multiplexers, statistical multiplexers 8517.6260
(f) Optical Network Unit (ONU) and its accessories. 8517.6990
3. Data UTP, STP and Fiber Optic (Indoor and Outdoor):
(a) Servers and storage equipment. 8471.3090
(b) PCs and Laptops 8471.3010
(c) Printers 8443.3230
(d) ATMs 8472.9010
Explanation.– In this notification the expression “financial services provider” means entities,
including but not limited to commercial banks, micro-finance banks, Islamic Banks, non-government
organizations, rural support programmes and leasing companies.
___________
S.R.O. 524(I)/2008, dated June 11, 2008.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 and section 34A of the Sales Tax Act, 1990, the Federal Government is
pleased to exempt the amount of sales tax, default surcharge and penalty payable in respect of the
taxable supplies made prior to 11th June, 2008, subject to following conditions, namely:–
(i) the supplies were made by an unregistered person who was otherwise liable to be
registered under the Sales Tax Act, 1990;
(ii) such person applies for registration during the period 1 st June, 2008 to 31st July, 2008,
and thereafter files sales tax returns and pays tax due regularly; and
(iii) this notification shall also not apply to the registered persons against whom a case of tax
fraud or evasion has already been framed.
_______________

S.R.O. 539(I)/2008, dated June 11, 2008.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt the
goods specified in column (3) of the Table below, imported for the manufacture of goods specified in
column (2) of the said Table, subject to the following conditions, namely:–
(i) a sales tax registered importer-cum-manufacturer having suitable in-house facilities shall
submit a complete list in the prescribed format appended as Form-I of his annual
requirement of permissible items (inputs) he intends to import for the manufacture of
goods mentioned in column (2) of the table to the Collector of Sales Tax and Federal Excise
having jurisdiction or to any other organization or person as authorized by the Federal Board
of Revenue;
(ii) the importer-cum-manufacturer shall file a request containing a declaration of input or,
as the case may be, input and output ratios to the Collector of Sales Tax and Federal Excise
or the authorized person. The Collector or the authorized person may accept the declaration
of input output ratio as declared by the applicant and determine the annual requirement of
inputs. In case the Collector or authorized person is not satisfied with declared input output
ratios of the items to be manufactured because of their being prima facie not in accordance
with the prevalent average of the relevant industry or for any other reason, he may, after
allowing a reasonable provisional quantity, make a reference to the Engineering
Development Board or IOCO or to any other recognized authority for final determination
thereof. The Collector or authorized person shall then determine the final annual
quantitative entitlement of inputs and the applicant shall proceed to consume imported
inputs in accordance with the input output ratios and quantities so determined;
(iii) the clearance of inputs shall be allowed through one port or dry port;
 94

(iv) the authorized officer of Sales Tax Collectorate shall furnish all relevant information
online to Customs Computerized System (PACCS) as per Form-II appended to this notification
against a specific user ID and password obtained under section 155D of the Customs Act,
1969. In already computerized Collectorate/Customs stations where the PACCS is not yet
operational, the Project Director or any other authorized person shall feed the requisite
information in the PACCS on daily basis and on weekly basis of the data obtained from the
stations which have not yet been computerized; and
(v) the importer-cum-manufacturer shall file Goods Declaration on the prescribed format
and manner with complete details of authorization of imported inputs for clearance. The
Collector of Customs on satisfaction of correct declaration shall allow clearance of imported
inputs after obtaining post dated cheque for the differential amount of statutory tax and
concessionary taxes.
1
[TABLE
S. No. Description of goods to be Description of raw Heading or sub-heading
manufactured materials Nos
(1) (2) (3) (4)
1. Dextrose and saline Ethylene Oxide Gas 2910.1000
infusion giving sets:
HS Code 9018.3920
THF Solution 2932.1100

Polystyrene 3903.1920
Acrylonitrile Butadiene 3903.3000
Styrene (ABS) copolymers
PVC Medical Grade 3904.2200
Medical Foil 3920.1000
Latex Tube 4006.9000
Medical Paper 4802.5400
Needle 9018.3200.]
FORM-1
(To be filled in by the importer-cum-manufacturer or any person or
persons duly authorized by him from his organization)
Name & address of the Importer NTN/FTN
Port of clearance Clearing Agents Name/No.

S. No. HS Code Description Specification of imported inputs

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

Applicable rate of Quantity Unit value Unit of measure Total value in Pak
duty rupees
(5) (6) (7) (8) (9)
1 Table substituted by Notification No. SRO 743(I)/2008, dated July 12, 2008.
___________
 95

S.R.O. 460(I)/2013, Islamabad, the 30 th May, 2013.– In exercise of the powers conferred by
clause (b) of sub-section (2) and sub-section (6) of section 3, clause (b) of sub-section (1) of section 8,
clause (a) of sub-section (2) of section 13 and section 71 of the Sales Tax Act, 1990, and in supersession
of its Notification No. S.R.O. 280(I)/2013, dated the 4th April, 2013, the Federal Government is pleased to
direct that sales tax shall be charged on the import and supply of the goods specified in column (1) of the
Table below, at the rates specified in columns (2) and (3) thereof, subject to the conditions, restrictions,
mode and manner as prescribed after the Table below, namely:–
TABLE
(1) (2) (3)
Description/ Categories Rate on Rate on supply (to be collected
import at the time of sale or
activation of SIM card
A. Low Priced Mobile Phones or Satellite Phones
i. All cameras: 2.0 mega-pixels or less
Rs. 150 Rs. 250
ii. Screen size: 206 inches or less
iii. Key pad
B. Medium Priced Mobile Phones or Satellite Phones
i. One or two cameras: between 2.1 to 10 mega-
pixels Rs. 250 Rs. 250
ii. Screen size: between 2.6 inches and 402 inches
iii. Micro-processor: less than 2 GHZ
C. Smart Cellular Phones or Satellite Phones
i. One or two cameras: 10 mega-pixels and above
Rs. 500 Rs. 250
ii. Touch Screen: size 4.2 inches and above
iii. 4GB or higher Basic Memory
iv. Operating system of the type iOS, Android V2.3,
Android Gingerbread or higher, Windows 8 or
Blackberry RIM
v. Micro-processor: 2GHZ or higher, dual core or
quad core
CONDITIONS, RESTRICTIONS, MODE AND MANNER
(i) The sales tax on supplies of cellular mobile phones shall be charged, collected and paid
by the cellular company operators on every new sale or activation of SIM card.
(ii) The cellular company operation shall, if not already registered, obtain registration under
the Sales Tax Act, 1990.
(iii) No SIM card shall be sold or activated by a cellular company operator without charging
and collecting the sales tax as specified in the Table.
(iv) The liability to charge, collect and pay the prescribed amount of sales tax shall be on the
cellular company operator who shall deposit same through a monthly tax return in terms of
section 26 of the Sales Tax Act, 1990, and rules made thereunder.
(v) The cellular company operator shall maintain proper records of all SIM cards sold or
activated for a period of three years, and such records shall be produced for inspection,
audit or verification, as and when required, by an authorized office of Inland Revenue.
 96

(vi) No adjustment of input tax shall be admissible to the cellular company operator or the
buyer against the sales tax chargeable and payable under this notification.
Explanation.–
For the purposes of this notification, ‘new activation’ shall mean a new connection or number given
by the cellular company operator but does not include a change in number given to a customer due to
change in package or his location in Pakistan.
_______________

S.R.O. 551(I)/2008, dated June 11, 2008.– In exercise of the powers conferred by clause (a) of
sub-section (2) of Section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt
the goods mentioned in column (2) of the Table below from the whole of sales tax with effect from 1st
July, 2008 subject to the conditions and restrictions specified in column (3) thereof, namely:–
S.No. Description of goods Conditions and restrictions
(1) (2) (3)
1
[ ]
2
[ ]
3. Raw and pickled hides and skins; wet blue hides If imported for the manufacture of goods
and skins; finished leather; and accessories, meant wholly for export provided that
components and trimmings for leather conditions, procedures and restrictions
manufacturers. laid down in rules 264 to 278 of the
Customs Rules, 2001 are duly fulfilled and
complied with.
4. Machinery, equipments and materials either for If imported by investors of Export
exclusive use within the limits of Export Processing Zones subject to the condition
Processing Zone or for making exports there that the procedures, limitations and
from; and goods imported for warehousing restrictions as are applicable on such
purpose in Export Processing Zone. goods under the Customs Act, 1969 (IV of
1969) and rules made there under shall
mutatis mutandis, apply.
5. Ships of gross tonnage of less than 15 LDT and all Import and supply thereof up to the year
floating crafts including tugs, dredgers, survey 2020 subject to the condition that the said
vessels and other specialized crafts purchased or ships or crafts are used only for the
bare-boat chartered by a Pakistan entity and purpose for which they were procured and
flying the Pakistan flag except the ships or crafts in case such ships or crafts are used for
which are acquired for demolition purposes or demolition purposes within a period of
are designed or adapted for use for recreation or five years of their acquisition, sales tax
pleasure purposes. applicable to such ships purchased for
demolition purposes shall be chargeable.
3
[ ]
7. The substances registered as drugs under the Import and supplies thereof.
Drugs Act, 1976 (XXXI of 1976) and medicaments
as are classifiable under Chapter 30 of the First
Schedule to the Customs Act, 1969 (IV of 1969)
except the following, even if medicated or
medicinal in nature, namely:-
(a) filled infusion solution bags imported with or
without infusion given sets;
(b) scrubs, detergents and washing preparations;
 97

(c) soft soap or no-soap soap;

1. Sr. No. 1 omitted by Notification No. SRO 595(I)/2012, dated June 1, 2012 w.e.f. June 2, 2012.
2. Sr. No. 2 omitted by Notification No. SRO 481(I)/2011, dated June 3, 2011 w.e.f. June 4, 2011.
3. Sr. No. 6 “6. Canola seed. Import thereof.” Omitted by Notification No. SRO 646(I)/2008, dated June 19, 2008.
Sr. No. 1–Omission.– Before omission by SRO 595(I)/2012, Sr. No. 1 read as follows:–
“1. Raw materials, sub-components and If imported for the manufacturing of goods to be supplied against
components international tenders.”
Sr. No. 2–Omission.– Before omission by SRO 481(I)/2011, Sr. No. 2 read as follows:–
“2. CNG kits, cylinders and valves for CNG kits If supplied for automotive vehicles.”
(b) scrubs, detergents and washing preparations;
(c) soft soap or no-soap soap;
(d) adhesive plaster;
(e) surgical tapes;
(f) liquid paraffin;
(g) disinfectants; and
(h) cosmetics and toilet preparations.
1
[ ]
2
[ ]
10. Oilseeds meant for sowing. Import thereof subject to the condition
that Plant Protection Department of
Ministry of Food, Agriculture and Livestock
certifies that the imported seeds are
fungicide and insecticide treated and are
meant for sowing.
11. Raw materials for the basic manufacture of Import and supplies thereof provided that
pharmaceutical active ingredients and for where such raw materials are imported
manufacture of pharmaceutical products. then only those raw materials shall be
entitled to exemption under this
notification which are liable to customs
duty not exceeding ten per cent ad-
valorem, either under the First Schedule to
the Customs Act, 1969 (IV of 1969) or under
a notification issued under section 19
thereof.
3
[ ]
13. Halal edible offal of bovine animals, falling under Import thereof.
PCT Headings 0206,1000, 0206,1000, 0206,2000,
0206,8000 and 0206,9000
14. Iodized salt bearing brand names and Import and supplies thereof.
trademarks whether or not sold in retail packing.
4
[ ]
5
[16. Components/sub-components of energy saver Import and supplies thereof
lamps, namely:–
1. Sr. No. 8 omitted by Notification No. SRO 879(I)/2009, dated October 10, 2009.
2. Sr. No. 9 omitted by Notification No. SRO 879(I)/2009, dated October 10, 2009.
3. Sr. No. 12 omitted by Notification No. SRO 481(I)/2011, dated June 3, 2011 w.e.f. June 4, 2011.
4. Sr. No. 15 omitted by Notification No. SRO 481(I)/2011, dated June 3, 2011 w.e.f. June 4, 2011. Earlier it was inserted by
Notification No. SRO 646(I)/2008, dated June 19, 2008.
5. Sr. No. 16 inserted by Notification No. SRO 646(I)/2008, dated June 19, 2008.
Sr. No. 8–Omission.– Before omission by SRO 879(I)/2009, Sr. No. 8 read as follows:–
8. Fresh, liquid and dried milk with addition of sugar or any other Supplies thereof.
 98

sweetening matter whether packed or not.

Sr. No. 9–Omission.– Before omission by SRO 879(I)/2009, Sr. No. 9 read as follows:–
9. Dried milk without addition of sugar or any other sweetening matter, Import and supplies thereof.
whether packed or not, falling under PCT Headings 0402.1000,
0402.2100 and 0402.9100
Sr. Nos. 12 & 15–Omission.– Before omission by SRO 481(I)/2011, Sr. Nos. 12 & 15 read as follows:–
“12. Commercial catalogues, falling under PCT Heading 4911.1000. Import and supplies thereof.
15. Rock Phosphate PCT Headings 2510.1000 and 2510.2000 Import and supplies thereof”
(a) Electronic Circuit PCT Heading 8539.9040
(b) Plastic Caps (Upper and Lower) PCT Heading
8539.9040;
(c) Base Caps b22 and E27 PCT Heading
8539.9040;
(d) Tungsten Filaments PCT Heading 8539.9040;
(e) Lead-in-wire PCT Heading 8539.9040;
(f) Fluorescent Powder (Tri Bank Phospher) PCT
Heading 3206.5010;
(g) Adhesive Additive PCT Heading 3824.9099;
(h) Al-Oxide Suspension PCT Heading
3824.9099;
(i) Capping Cement PCT Heading 3214.1050;
(j) Stamp Pad Ink PCT Heading 3215.9010; and
(k) Gutter for Suspension PCT Heading
2850.0000.]
1
[ ]
2
[ ]
3
[19 Cinematographic film exposed and developed. 3706.1000 and 3706.9000.]
4
[20. Platinum 7110.1100 and 7110.1900
21. Palladium 7110.2100 and 7110.2900
22. Diamonds 7102.2100, 7102.2900 and 7102.3900
23. Precious stones 7103.1000, 7103.9100 and 7103.9900]
5
[24. Synthetic or reconstructed stones, precious or 7104.1000, 7104.2000 and 7104.9000]
semi-precious.
1. Sr. No. 17 omitted by Notification No. SRO 481(I)/2011, dated June 3, 2011 w.e.f. June 4, 2011. Earlier it was inserted by
Notification No. SRO 774(I)/2008, dated July 24, 2008.
2. Sr. No. 18 omitted by Notification No. SRO 481(I)/2011, dated June 3, 2011 w.e.f. June 4, 2011. Earlier it was substituted by
Notification No. SRO 897(I)/2008, dated August 27, 2008. Earlier it was inserted by Notification No. SRO 861(I)/2008, dated
August 20, 2008.
3. Sr. No. 19 inserted by Notification No. SRO 473(I)/2009, dated June 13, 2009, w.e.f. June 14, 2009.
4. Sr. Nos. 20 to 23 inserted by Notification No. SRO 720(I)/2009, dated August 6, 2009.
5. Sr. No. 24 inserted by Notification No. SRO 895(I)/2009, dated October 17, 2009.
Sr. Nos. 17 & 18–Omission.– Before omission by SRO 481(I)/2011, Sr. Nos. 17 & 18 read as follows:–
17. Phosphoric Acid falling under PCT Heading 2809.2010 Imported by or supplied to phosphatic
fertilizer industry for the manufacture
of phosphatic fertilizer
18. Mineral oil 97% (W/V) 110% (W/V) falling under PCT Heading (a) Subject to a certificate by Plant
2710.0000 Protection Department specifying the
quantities to be imported by the person
registered with them as importer,
formulator or manufacturers of
pesticides;
(b) Plant Protection Department shall
ensure that.–
 99

(i) total quantity does not exceed 250

tons; and
(ii) goods are imported on or before
15th October, 2008”

1 2
[ [26]. Following items with dedicated use of Import and supplies thereof subject to
renewable source of energy like solar and wind certification by Alternative Energy
etc. Development Board (AEDB), Islamabad.
(i) Solar PV panels (PCT heading 8541.5000)
(ii) LVD Induction Lamps (PCT heading
8539.3990)
(iii) SMD, LEDs with or without ballast with
fittings and fixures (PCT heading 9405.1090)
(iv) Wind Turbines including alternators and
mast (PCT heading 8502.3100)
(v) Solar Torches (PCT heading 8513.1040)
(vi) Lanterns and related instruments (PCT
heading 8513.1090)
(vii) PV Modules alongwith the related
components including invertors, charge
controllers and batteries (PCT headings
8541.4000, 8504.4090, 9032.8990 and
8507.0000)]
3
[27 White crystalline sugar 1701.9910 and 1701.9920
28 Reclaimed lead if supplied to recognized Respective headings.]
manufacturers of lead batteries.
4
[29 Following cardiology/cardiac surgery, Import and supply thereof
Neurovascular, Electrophysiology, Endosurgery,
Endoscopy, Oncology, Urology, Gynaecology,
disposables and other equipment
A. ANGIOPLASTY PRODUCTS 9938]
1. Coronary Artery Stents
2. Drugs Eluting Coronary Artery Stents
3.Coronary Artery Dilatation Catheters
(Balloons)
4. PTCA Guide Wire
5. PTCA Guiding Catheters
6. Inflation Devices/Priority Packs
B. ANGIOGRAPHY PRODUCTS
1. Angiography Catheters
2. Sheaths
3. Guide Wires
4. Contrast Lines
5. Pressure Lines
 100

6. Mannifolds
1. Sr. No. 25 inserted by Notification No. SRO 369(I)/2011, dated May 7, 2011.
2. Sr. No. 25 renumbered as 26 by Notification No. SRO 481(I)/2011, dated June 3, 2011 w.e.f. May 7, 2011.
3. Sr. Nos. 27 and 28 inserted by Notification No. SRO 481(I)/2011, dated June 3, 2011 w.e.f. June 4, 2011.
4. Sr. No. 29 inserted by Notification No. SRO 805(I)/2011, dated August 26, 2011.
 101

C. CONTRAST MEDIA FOR

ANGIOGRAPHY/ANGIOPLASTY
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 DEVIES (with leads,
connectors and accessories
G. IMPLANTABLE CARDIOVERTES (with leads,
connectors and accessories)
H. CARDIAC
ELECTROPHYSIOLOGY PRODUCTS
1. Electrophysiology catheters
2. Electrophysiology cables
3. Electrophysiology connectors
I. LEAR CRDIOLOGY PRODUCTS
1. Radioactive isotopes
2. Cold kits (Cardioloite MAA, DTPA etc)
J. CARDIAC SURGERY PRODUCTS
1. Oxygenators
2. Cannulas
3. Prosthetic Heart Valves
4. Luminal Shunts for heart surgery
5. Artificial limbs and appliances
K. EQUIPMENT
1. Cardiac Angiography Machine
2. Echocardiography Machines
3. ETT Machines
4.Gamma Camera for Nuclear cardiology
studies
 102

L. PERIPHERAL INTERVENTIONS EQUIPMENT

Disposables and other equipment for
peripheral interventions including Stents
(including carotid and wall stents), Balloons,
sheaths, catheters, Guide Wires, Filter Wires
Coils, Needles, Valves (including rotating
homeostatic valves), connecting cables, inflation
devices adaptors.
1
[30. Waste Paper Supplies thereof.
31. Remeltable Scrap (PCT heading Import and supplies
thereof 72.04)
32. (i) Sprinkler equipment Supplies thereof.]
(ii) Drip equipment
(iii) Spray pumps and nozzles
2
[33 Raw Cotton and Ginned Cotton Import and supply thereof.]
1. Sr. Nos. 30, 31 & 32 inserted by Notification No. SRO 595(I)/2012, dated June 1, 2011 w.e.f. June 2, 2012.
2. Sr. Nos. 33 inserted by Notification No. SRO 220(I)/2013, dated March 19, 2013.
_______________

SRO (I)/2009, Islamabad, the 23rd August, 2009.– In exercise of the powers conferred by clause
(a) of sub section (2) of Section 13 of Sales Tax Act, 1990, the Federal Government is pleased to direct
that sales tax on local supplies of sugar shall be charged at the rate of eight per cent with immediate
effect and until further orders.
_______________

S.R.O. 820(I)/2010, dated August 18, 2010.– In exercise of the powers conferred by section 19 of
the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990,
and sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to
direct that the goods and quantities mentioned in the Table below, manufactured by M/s. H. Nizam Din &
Sons (Private) Ltd., Karachi notified vide Notification No. S.R.O. 1058(I)/81, dated the 23 rd September, 1981,
and operating under Customs Export Processing Zones Rules, 1981, shall be exempted from duty and taxes,
on one time basis, if supplies to the international donor agencies or NGOs, for the flood affectees and
victims, for humanitarian purposes, subject to the following conditions, namely:–
(a) the supplies are made through National Disaster Management Authority and a
certificate issued by National Disaster management Authority to this effect is produced to
the concerned Collector of Customs for these goods;
(b) all the supplies shall be made against convertible foreign currency; and
(c) the supplies are made on the basis of f.o.b. prices.
TABLE
Sr. No. Description of Goods Quantity
1. Jerry cans collapsible 30,575 pieces
2. Plastic sheeting size 2 X 6M 6,000 pieces
3. Kitchen sets (family) 1,600 sets
4. Blankets (medium) 9,000 pieces
5. Shelters emergency kits 1,800 kits
_______________
 103

S.R.O. 727(I)/2011, dated August 1, 2011.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal government is pleased to exempt
sales tax on the import of plant and machinery not manufactured locally and having no compatible local
substitutes subject to the following conditions, namely:–
(i) the registered manufacturers or industrial importers shall submit to the customs
authorities post-dated cheques equal to the amount of sales tax payable at import stage
which shall be returned back on the filing of first sales tax return after import of the
machinery;
(ii) the commercial importers shall submit to the customs authorities good-for-payment
cheque or bank guarantee or pay order or pay in cash equal to the amount of sales tax
payable at import stage, which shall be returned back, or as the case may be, refunded after
providing evidence of next supply to the registered manufacturer or industrial users;
(iii) local supply of plant and machinery by commercial importers to unregistered industrial
regimes or commercial regimes shall be liable to tax and evidence to that effect shall be
produced to the customs authorities for release of the said instrument or refund of the
amount paid at import stage:
(iv) subsequent supply of plant and machinery imported or acquired and used by registered
manufacturers or registered industrial users to unregistered industrial regimes or
commercial regimes whether registered or not, shall be liable to tax; and
(v) the validity period of instruments furnished under this notification on shall not be less
than one hundred and twenty days.
Explanation.– For the purpose of this notification, plant and machinery means such plant and
machinery as is used in the manufacture or production of goods.
_______________

S.R.O. 408(I)/2012, dated April 19, 2012.– In exercise of the powers conferred by clause (a) of
sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt the
taxable goods mentioned in the Table below from the whole of the sales tax chargeable under the said
Act at the import or supply stage, namely:–
Table
S.No Description
01 Blood Bag CPDA-1 with blood transfusion set pack in Respective Heading.
Aluminum foil with set.
_______________

S.R.O. 499(I)/2013, Islamabad, the 12th June, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales
Tax Act, 1990 and sections 53 and 148 of the Income Tax Ordinance, 2001 (XLIX of 2001), and in
supersession of Notification No. S.R.O. 607(I)/2012, dated the 2 nd June, 2012, the Federal Government is
pleased to exempt customs duty, sales tax and withholding tax on import of Hybrid Electric Vehicles
(HEVs) falling under PCT Code 87.03, specified in column (2) of the Table below, to the extent as specified
in column (3) thereof, namely:–
TABLE
S. No Engine Capacity Extent of exemption in leviable
duty & taxes
(1) (2) (3)
1 Upto 1200 CC 100%
 104

2 From 1201 CC to 1800 CC 50%

3 From 1801 CC to 2500 CC 25%
th
2. This notification shall take effect from the 13 day of June, 2013.
_______________

S.R.O. 760(I)/2012, Islamabad, the 22 nd June, 2012.– In exercise of the powers conferred by
clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased
to exempt urine drainage bags from the whole of the sales tax payable at its import or supply stage.
_______________

S.R.O. 501(I)/2013, Islamabad, the 12th June, 2013.– In exercise of the powers conferred by
clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased
to exempt the whole of sales tax on the import and supplies of the goods mentioned in column (2) of the
Table below, namely:–
TABLE
S. No. Description
(1) (2)
1. Uncooked poultry meat (PCT Heading 02.07).
2. Milk and cream (PCT headings 04.01 and 04.02).
3. Flavored Milk (PCT Headings 0402.9900 and 22.02).
4. Yogurt (PCT Heading 0403.1000).
5. Whey (PCT Heading 04.04).
6. Butter (PCT Heading 0405.1000).
7. Desi ghee (PCT Heading 0405.9000).
8. Cheese (PCT Heading 0406.1010).
9. Processed cheese not grated or powdered (PCT Heading 0406.3000).
10. Cotton seed (PCT heading 1207.2000).
11. Frozen, prepared or preserved sausages and similar products of poultry meat or meat offal
(PCT Heading 1601.0000).
12. Meat and similar products of prepared frozen or preserved meat or meat offal of all types
including poultry meat and fish (PCT Headings 1602.3200, 1602.3900, 1602.5000,
1604.1100, 1604.1200, 1604.1300, 1604.1400, 1604.1500, 1604.1600, 1604.1900,
1604.2010, 1604.2020, 1604.2090, 1604.3000).
13. Preparations for infant use, put up for retail sale (PCT Heading 1901.1000).
14. Fat filled milk (PCT Heading 1901.9090).
15. Soyabean meal (PCT Heading 2304.0000).
16. Oil cake and other solid residues, whether or not ground or in the form of pellets (PCT
heading 2306.1000)
17. Colours in sets (Poster colours) (PCT Heading 3213.1000).
18. Writing, drawing and marking inks (PCT Headings 3215.9010 and 3215.9090).
19. Erasers (PCT Headings 4016.9210 and 4016.9290).
20. Exercise books (PCT Heading 4820.2000).
21. Directly reduced iron (PCT heading 72.03).
 105

22. Pencil sharpeners (PCT Heading 8214.1000).

23. Energy saver lamps (PCT heading 8539.3910).
24. Sewing machines of the household type (PCT Headings 8452.1010 and 8452.1090).

25. Purpose built taxis, whether in CBU or CKD condition (PCT Headings 8703.3226 and
8703.3227) which are built on girder chassis and having following features, namely:-
(a) Attack resistance central division along with payment tray;
(b) Wheelchair compartment with folding ramp; and
(c) Taximeter and two-way radio system.
26. Bicycles (PCT Heading 87.12).
27. Wheelchairs (PCT headings 8713.1000 and 8713.9000).
28. Vessels for breaking up (PCT heading 89.08)
29. Other drawing, marking out or mathematical calculating instruments (geometry box) (PCT
Heading 9017.2000).
30. Pens and ball pens (PCT Heading 96.08).
31. Pencils including colour pencils (PCT Heading 96.09).
32. Compost (non-chemical fertilizer) produced and supplied locally
33. Construction materials to Gawadar Export Processing Zone’s investors and to Export
Processing Zone Gawadar for development of Zone’s infrastructure.
2. This Notification shall take effect on and from the 13 th day of June, 2013.
_______________

S.R.O. 863(I)/2008, dated August 20, 2008.– In exercise of the powers conferred by clause (a) of
section 27 of the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to direct that all the
registered manufacturers making supply of taxable goods as mentioned in column (2) of the Table below
shall furnish, by the 25th of each month, the details of goods manufactured or produced and goods
supplied in the format as given in the Annex to this Notification and quantitative data shall be provided
using the units mentioned in column (3) of the aforesaid Table, namely:–
TABLE
S. No. Product Unit of Measurement
(1) (2) (3)
1 Sugar M. Tons
2 Tea blended M. Tons
3 Cigarettes Million Nos.
4 Aerated Waters "000" Litres
5 Paper M. Tons
6 Board M. Tons
7 Chemicals M. Tons
8 Caustic soda M. Tons
9 Toilet soap M. Tons
10 Flakes & Detergent M. Tons
11 Industrial Gases (Chlorine, Hydrogen, Oxygen etc.) M. Tons
 106

12 Paints & Varnishes M. Tons

13 LPG M. Tons
14 Natural Gas Million Cu. Meters
15 Cement "000" M. Tons
16 Ceramic Tiles '000' Sq. Meters
17 Refrigerators Nos.
18 Air conditioners (Split/ Window) Nos.
19 Deep freezers Nos.
20 T. V. sets Nos.
21 Washing machines Nos.
22 Cables & wire (insulated) "000" Mtre
23 Trucks Nos.
24 Buses Nos.
25 Jeeps Nos.
26 Motor Cars Nos.
27 LCVs/ LTVs Nos.
28 Motors cycles Nos.
29 Tractors Nos.”.
30 Ice Cream "000" Litres
31 Biscuits M. Tons
32 Fruits/ Vegetable Juices "000" Litres
33 Syrups/Squashes "000" Litres
34 Mineral Water "000" Litres
35 Soda ash M. Tons
36 Tyre & Tubes (motor car, bus, van, truck etc.) "000" Nos.
37 Motor Spirit M. Tons
38 High speed diesel oil M. Tons
39 Diesel oil M. Tons
40 Furnace oil M. Tons
41 Lubricating oil M. Tons
42 G. I. Pipes '000' Meters
ANNEX
SPECIAL RETURN
For Production and Supplies
(under section 27(a) of the Sales Tax Act, 1990.)
PRODUCTION DATA STATEMENT
NTN 1234567-8 STRN 12-34-4567-910-12 Tax Period MM-YYYY

Name of Registered
 107

Person

S. Description Unit of Installed Quantity Quantity Quantity Value of Qty. Quantity

No. Measures Monthly in Pproduced Supplied (Supplied (Rs.) in
Capacity Opening Closing
Balance Balance

Total
Signature: _______________
Name: __________________
Designation: _____________
NTN No.: _______________
Date: __________________.
___________
S.R.O. 308(I)/2000, dated June 6, 2000.– In exercise of the powers conferred under section 34A
of the Sales Tax Act, 1990, the Federal Government is pleased to exempt so much of additional tax
chargeable under section 34 as is in excess of the simple rate of one and a half per cent per month and
penalties as are in excess of fifty per cent of the amounts or rates of penalties chargeable under section
33 of the said Act due on such principal amount of sales tax as has accrued or has been assessed,
determined, adjudged or demanded in any manner or is outstanding on any account or for any reason
on or before the date of issue of this notification if such principal amount is paid by a registered person
alongwith additional tax and penalties as reduced by this notification on or before 30th June, 2000.
2. In cases where there are no arrears of principal amount of sales tax and the arrears involve
additional tax and penalty only, the benefit of this notification shall be admissible if the amount of
additional tax and penalties not exempt under this notification is paid by a registered person on or
before the said date.
3. This notification shall not entitle any registered person to refund of any tax, additional tax or
penalty already paid.
4. This notification shall also apply in cases where prosecution proceedings under the said Act
have been initiated.
___________
S.R.O. 615(I)/2000, dated September 2, 2000.– In exercise of the powers conferred by section
34A of the Sales Tax Act, 1990, the Federal Government is pleased to exempt so much of the additional
tax chargeable under section 34 as is in excess of the simple rate of one and a half per cent per month
and penalties as are in excess of fifty per cent of the amounts or rates of penalties chargeable under
section 33 of the said Act as it stood before the Finance Ordinance, 2000 (XXI of 2000), due on such
principal amount of sales tax as has accrued or has been assessed, determined, adjudged or demanded
in any manner or is outstanding on any account or for any reason on or before the 30th day of June,
2000, if such principal amount is paid by a registered person alongwith additional tax and penalties as
reduced by this notification on or before 1[15th October], 2000.
2. In cases where there are no arrears of principal amount of sales tax and the arrears involve
additional tax and penalty only, the benefit of this notification shall be admissible if the amount of
additional tax and penalties payable under this notification as aforesaid is paid by a registered person on
or before the said date.
3. The exemption under this notification shall also be admissible in cases where proceedings
under the said Act were initiated on or before the 30 th day of June, 2000.
4. This notification shall not entitle any registered person to refund of any tax, additional tax or
penalty already paid.
 108

1 Substituted for the word and figure “30th September” by Notification No. SRO 685(I)/2000, dated September 30, 2000.
___________
S.R.O. 51(I)/2001, dated January 27, 2001.—In exercise of the powers conferred by section 34A
of the Sales Tax Act, 1990 the Federal Government, being satisfied that the delay in payment occurred
due to circumstances beyond control of the Directorate General of Petroleum Concession, Ministry of
Petroleum and Natural Resources, is pleased to exempt the whole amount of additional tax demanded
from the said Directorate General vide Show Cause Notice C. No. St/Coll (Adj) 18/2000/9409 dated
10.10.2000, of the Collector of Customs, Sales Tax and Central Excise (Adjudication), Rawalpindi.
_________________

S.R.O. 247(I)/2004, dated May 5, 2004.– In exercise of the powers conferred by section 34A of
the Sales Tax Act, 1990, the Federal Government is pleased to exempt the amount of additional tax and
penalty payable in excess of the amount mentioned in column (3) of the Table below, by the categories
of persons mentioned in column (2) thereof, subject to the following conditions, namely:–
(a) the amount of tax payable is to be paid by the 1[30th June, 2004] 2[:]
3
[Provided that in case the additional tax payable by a registered person exceeds
the principal amount, the additional tax in excess of twenty five per cent of the principal
amount and the whole of penalty shall be exempted, if the payment of outstanding principal
amount and the additional tax as reduced by this notification is made on or before the 30th
June, 2004:
Provided further that in case only an amount of penalty is outstanding against a
registered person, if he pays an amount equal to twenty-five per cent of the such amount by
the 30th June, 2004, the remaining amount of penalty shall be exempted.] and
(b) this notification shall not entitle any person to claim or take refund of any amount of
sales tax already paid by or recovered from him.
TABLE
Sr. Category of person Amount payable
No.
(1) (2) (3)
1. Persons against whom any amount of sales Outstanding principal amount of sales tax and
tax is outstanding in terms of an audit twenty-five per cent of additional tax thereon.
observation, audit report, demand notice,
assessment order or adjudication order, or
due to any other reason.
2. Persons who failed to pay any amount of sales Amount of sales tax not paid or inadmissible
tax or took inadmissible adjustment of input input tax adjusted, as the case may be, and
tax due to any reason. twenty-five per cent of additional tax thereon.
3. Persons who wrongly obtained refund or took Amount of refund wrongly obtained, or
inadmissible adjustment of input tax on the inadmissible input tax adjusted, as the case may
basis of fake or flying invoices, wrong be, and twenty-five per cent of additional tax
calculations or any other reason. thereon.
4. Persons who avoided payment of further tax Amount of further tax involved and twenty-five
by wrongly issuing invoices in the name of per cent of additional tax thereon.
registered persons.
1 Substituted for “20th June, 2004” by Notification No. SRO 526(I)/2004, dated June 21, 2004.
2 Substituted for the semi-colon by Notification No. SRO 526(I)/2004, dated June 21, 2004.
3 Provisos inserted by Notification No. SRO 526(I)/2004, dated June 21, 2004.
___________

S.R.O. 858(I)/2004, dated October 18, 2004.— WHEREAS, the Shipping Agents including
NVOCCs, International Freight Forwarders, Consolidators and Slot Carriers were brought to the tax net in
 109

the Budget FY 2004-05; and central excise duty (in GST mode) @ 15% of the commission charges was
levied on them. The rate of CED in respect of NVOCCs, International Freight Forwarders, Consolidators
and Slot Carriers was subsequently reduced from the standard rate of 15% to Rs. 200/- per ‘House Bill of
Lading’ issued by them, vide Notification No. SRO 621(I)/2004, dated the 17th July, 2004;
AND WHEREAS, the levy imposed on International Freight Forwarders was a new levy and they
were previously not in the registration net, therefore, a number of International Freight Forwarders
could not file their sales tax returns within the due dates, as defined under sub-section (9) of section 2 of
the Sales Tax Act, 1990, due to the lack of knowledge of Sales Tax law and procedures;
NOW, THEREFORE, in exercise of the powers conferred under section 34A of the Sales Tax Act,
1990, the Central Board of Revenue is pleased to exempt, as a special case, whole of the amount of
additional tax and penalty chargeable from the persons registered as International Freight Forwarders
due to late filing of returns in the tax period of the months of June, July, August and September, 2004,
subject to the following conditions, namely:–
(i) they shall file all outstanding returns by the 25th day of October, 2004;
(ii) no such exemptions shall be available to the International Freight Forwarders who fail to
file outstanding tax returns by the aforesaid date; and
(iii) no refund of additional tax or penalty, if already paid on account of late filing of tax
returns for the aforesaid tax periods, shall be admissible.
___________
S.R.O. 520(I)/2005, dated June 6, 2005.– In exercise of the powers conferred by section 34A of
the Sales Tax Act, 1990, the Federal Government is pleased to exempt whole of the amount of additional
tax and penalties payable by a person against whom an amount of sales tax is outstanding on account of
any audit observation, audit report, demand notice or any order; or who has failed to pay any amount of
sales tax or claimed inadmissible input tax adjustment or refund due to any reason other than tax fraud,
subject to the following conditions, namely:–
(a) the outstanding principal amount of sales tax is paid by the 1[31st July, 2005]; and
(b) this notification shall not entitle any person to claim or take refund of any amount of
sales tax already paid by or recovered from him.
1 Substituted for “30th June, 2005” by Notification No. SRO 723(I)/2005, dated July 21, 2005.
___________
S.R.O. 463(I)/2007, dated June 9, 2007.– In exercise of the powers conferred by section 34A of
the Sales Tax Act, 1990, the Federal Government is pleased to exempt whole of the amount of default
surcharge and penalties payable by a person against whom an amount of sales tax is outstanding on
account of any audit observation, audit report, show cause notice or any adjudication order, or who has
failed to pay any amount of sales tax or claimed inadmissible input tax adjustment or refund due to any
reason other than tax fraud, subject to the condition that the outstanding principal amount of sales tax is
paid by the 30th June, 2007 1[, or has already been paid at the time of issuance of this notification.]
1 Comma substituted for full stop and thereafter words inserted by Notification No. SRO 999(I)/2007, dated September 29,
2007.
________________

S.R.O. 479(I)/2009, dated June 13, 2009.– In exercise of the powers conferred by section 34A of
the Sales Tax Act, 1990, and sub-section (4) of section 16 of Federal Excise Act, 2005, the Federal
Government is pleased to exempt penalty for late filing of return payable under serial No. I of the Table
given in section 33 of the Sales Tax Act, 1990, and sub-section (1) of section 19 of Federal Excise Act,
2005, in respect of a registered person, subject to the following conditions, namely:–
(a) The registered person filed the returns by the 28 th February, 2009 for the tax periods
from July, 2008, to January, 2009; and
 110

(b) payment of the tax due was made by the registered person by due date for each month.
_______________

S.R.O. 500(I)/2013, Islamabad, the 12th June, 2013.– In exercise of the powers conferred by
clause (b) of sub-section (2) of section 3, section 4, clause (a) of sub-section (2) of section 13 and section
34A of the Sales Tax Act, 1990, sub-section (1) of section 12A of the Central Excises Act, 1944 (I of 1944)
and clause (c) of sub-section (1) of section 3 and section 16 of the Federal Excise Act, 2005, the Federal
Government is pleased to rescind the following Notifications, namely:–
(i) No. S.R.O. 160(I)/2010, dated the 10th March, 2010;
_________________

S.R.O. 648(I)/2011, dated June 25, 2011.– In exercise of the powers conferred by section 34A of
the Sales Tax Act, 1990 and sub-section (4) of section 10 of the Federal Excise Act, 2005, the Federal
Government is pleased to exempt whole of the amount of default surcharge and penalties payable by a
person against whom an amount of sales tax or federal excise duty is outstanding on account of any
audit observation, audit report, show cause notice or any adjudication order, or who has failed to pay
any amount of sales tax or federal excise duty or claimed inadmissible input tax credit, adjustment,
refund, drawback or rebate due to any reason, subiect to the condition that the outstanding principal
amount of sales tax or federal excise duty is paid by 30 th June.
2. Benefit of this notification shall not be available in cases of fraudulent refunds or drawback
and other tax frauds.
_______________

S.R.O. 548(I)/2012, Islamabad, the 22 nd May, 2012.– In exercise of the powers conferred by
section 34A of the Sales Tax Act, 1990 and sub-section (4) of section 16 of the Federal Excise Act, 2005,
the Federal Government is pleased to exempt whole of the amount of default surcharge and penalty for
non-payment payable by a person against whom an amount of sales tax or federal excise duty is
outstanding on account of any audit observation, audit report, show cause notice or any adjudication
order, or who has failed to pay any amount of sales tax or federal excise duty or claimed inadmissible
input tax credit, adjustment, refund, drawback or rebate due to any reason, subject to the condition that
the outstanding principal amount of sales tax or federal excise duty is paid by the 1[30th June, 2012];
Provided that where refund becomes due to any person in consequence of a decision or
judgment of court after the issuance of this Notification, the tax deposited by that person under this
Notification shall be refunded to him.
2. Benefit of this Notification shall not be available in cases of fraudulent refunds or drawback
and other tax refund.
1 Substituted for “25th June, 2012” by Notification No. SRO 770(I)/2012, dated June 25, 2012. Earlier “25 th June, 2012” was
substituted for “31st May, 2012” by Notification No. SRO 700(I)/2012, dated June 7, 2012.
_______________

S.R.O. 774(I)/2012, Islamabad, the 27th June, 2012.– In exercise of the powers conferred by
section 34A of the Sales Tax Act, 1990, the Federal Government, in supersession of its Notification No.
S.R.O. 606(I)/2012, dated the 1 st day of June, 2012, is pleased to exempt the whole amount of default
surcharge and penalties payable by a person against whom an amount of sales tax is outstanding on
account of illegally adjusted input tax, subject to the following conditions:–
(i) twenty-five per cent of the principal amount of illegally adjusted sales tax is paid by the
30th June, 2012;
(ii) the remaining principal amount (seventy-five percent) is paid by the 31 st December, 2012
in five equal monthly instalments with first instalment payable on the 31 st August, 2012; and
 111

(iii) any case, complaint or proceedings filed by the registered person before any court of
law, Federal Tax Ombudsman or any other authority is withdrawn by 31 st December, 2012.
2. Any criminal proceedings lodged by the department shall abate from the date of complying
with the above conditions by the registered person.
3. In case payment is not made as per conditions mentioned above, benefit under this
notification shall abate ab initio.
_______________

S.R.O. 494(I)/2013, Islamabad, the 10 th June, 2013.– In exercise of the power conferred by
section 34A of the Sales Tax Act, 1990, sub-section (4) of section 16 of the Federal Excise Act, 2005,
section 202A of the Customs Act, 1969 (Iv of 1969) and section 183 of the Income Tax Ordinance, 2001
(XLIX of 2001), the Federal Government is pleased to exempt the Whole amount of default surcharge,
penalty and other surcharge payable by a person against whom an amount of sales tax, federal excise
duty, customs duty or income tax (including withholding tax) is outstanding on account of any audit
observation, audit report, show cause notice, adjudication or assessment order, or who has failed to pay
any amount of sales tax, federal excise duty, customs duty and income tax (including withholding tax) or
claimed inadmissible input tax credit, adjustment, refund, drawback or rebate due to any reason, subject
to the condition that the whole outstanding principal amount of sales tax, federal excise duty, customs
duty or income tax (including withholding tax), as the case may be, is paid by the 30 th June, 2013.
2. The benefit of this Notification shall not be available to cases of fraudulent refunds, drawback
or any case involving tax or duty fraud or where prosecution proceedings have been initiated.
_______________

S.R.O 335(I)/2004, dated May 24, 2004.- WHEREAS during the budget for the financial year
2003-04, imported oil seeds were subjected to sales tax @ 20%, the oil extracted therefrom was
subjected to sales tax @ 15% on local supply, while the meal extracted from oil-seed remained exempt
from payment of sales tax under the Sixth Schedule to the Sales Tax Act, 1990. Hence, in terms of section
7 and clause (a) of sub-section (1) of section 8 of the said Act, read with the Apportionment of Input Tax
Rules, 1996, the refund or adjustment of input tax was admissible to the extent of taxable supplies (oil)
only;
AND whereas the solvent extractors thus raised the issue that owing to higher inputs and lesser
outputs, they could not adjust the entire amount of sales tax paid by them at import stage. It was,
therefore, decided that the Government would share the burden of sales tax on meal to the extent of
half of the increased impact of sales tax on meal, which is worked out to be equivalent to 10.5% of the
average amount of sales tax paid at import stage. This relief would be in addition to any sales tax refund
or carry forward that may accrue due to 20% sales tax chargeable on imported oil-seeds and 15% on the
local supply of oil extracted therefrom;
NOW, THEREFORE, in exercise of the powers conferred by section 61 of the Sales Tax Act, 1990,
the Central Board of Revenue is pleased to allow re-payment or refund of sales tax to the extent of
10.5% of the amount of tax per metric ton of oil seeds paid at the import stage to solvent extractors,
subject to following conditions, namely:
(1) The refund or relief under this notification shall only be extended to the imported oil-
seeds, for which bill of entry has been filed on or after the 7 th June, 2003;
(2) the claimant shall file a refund claim with the concerned Collectorate where he is
registered for sales tax purposes along with copy of sales tax return for the relevant tax
period to which the claim is related; and
(3) the claimant or importer should produce documentary evidence i.e., the bill of entry,
duly verified from the concerned Customs station, in support of his claim.
 112

________________

S.R.O. 993(I)/2006, dated September 21, 2006.– In exercise of the powers conferred by section
61 of the Sales Tax Act, 1990, and sub-section (2) of section 5 of the Federal Excise Act, 2005, the Central
Board of Revenue is pleased to allow composite repayment-cum-drawback of sales tax and federal excise
duty to the registered person on the export from Pakistan of vegetable ghee 1[, cooking oil and
margarine] at the rates mentioned against each in column (3) of the Table below subject to the
conditions specified in paragraph 2.
2
[TABLE
S. No. Description Repayment-cum-drawback rate
(1) (2) (3)
1. Vegetable ghee (i) Rs. 6.62 per kg for exports made during 1st January, 2007 to
30th June, 2007.
(ii) Rs. 6.96 per kg for exports made during 1 st July, 2007 to 10th
September, 2007.
(iii) 90% of federal excise duty paid at import stage on the same
quantity of edible oil as exported, including the duty paid under the
Notification No. S.R.O. 24(I)/2006, dated the 7th January, 2006, for
exports made on or after 11th September, 2007:
Provided that 90% of federal excise duty shall be worked out by
taking average of all imports as made by the exporter during the
last month prior to the month of export and in case edible oil was
not directly imported by the exporter then on the basis of goods
declaration of the importer from whom purchases of edible oil
were made.
3
[ ]
2. Cooking oil Rs. 6.69 per kg
3. Margarine Rs. 5.97 per kg.]
2. The repayment-cum-drawback under this notification shall be admissible subject to the
fulfilment of the following conditions, namely:–
(i) only branded products shall be entitled to the aforesaid repayment-cum-drawback;
(ii) the exporter shall file claim to the concerned Collector of Sales Tax and Federal Excise for
the repayment-cum-drawback on monthly basis, as and if due;
(iii) commercial exporters shall be entitled to the repayment-cum-drawback provided they
make direct procurements from the registered ghee or oil manufacturing units;
(iv) the import goods declarations (duplicate-in-original) and original purchase invoices shall
be endorsed by the concerned officer of the Collectorate of Sales Tax and Federal Excise
confirming their utilization for the purpose of repayment-cum-drawback and drawback under
this notification;
1 Substituted for “and cooking oil” by Notification No. SRO 1201(I)/2007, dated December 11, 2007.
2 Table substituted by Notification No. SRO 1201(I)/2007, dated December 11, 2007.
3 Clause (iv) omitted by Notification No. SRO 503(I)/2013, dated June, 12, 2013. Earlier it was inserted by Notification No. SRO
342(I)/2010, dated May 20, 2010.
Table–Substitution.– Before substitution the Table read as follows;–
“TABLE
S. No. Description Repayment-cum-drawback rate
(1) (2) (3)
1. Vegetable ghee Rs. 1[6.96] per kg
2. Cooking oil Rs. 6.69 per kg”
1 Substituted for “6.17” by Notification No. SRO 1010(I)/2007, dated October 3, 2007 and shall be deemed to have been so
substituted on 11th September, 2007. The notification states substitution of “5.99” apparently ignoring the amendment made
 113

through Notification No. SRO 26(I)/2007, dated January 10, 2007 which substituted the figure “6.17” for the figure “5.99” and
the amendment was deemed to be so substituted on 1st January, 2007.
(v) the exporters shall be required to furnish a monthly inventory-cum-production
statement to the concerned Collector in the format as set out in ‘Annex’ duly supported by
goods declarations and purchase invoices. The statement shall be verified on quarterly basis
through desk audit; and
(vi) the applicable export policy conditions and procedures shall be adhered to as usual.
3. The Collectorates shall process the claim in the same manner as prescribed under Chapter V
of the Sales Tax Rules, 2006, as far as applicable, and make payment of admissible repayment- cum-
drawback within the time prescribed under the said Rules.
1
[3A. The refund of sales tax on electricity, gas and packing material shall be paid on the basis of
actual quantities consumed in the manufacture of exported goods. The claimants shall provide the sales
tax invoices and goods declarations, as the case may be, along with statements showing consumption of
these inputs in the exported goods. The Board may issue directives to further regulate the payment of
refund on such inputs 2[:]]
3
[Provided that the refund under this paragraph shall be admissible against exports made on or
after the 1st January, 2006.]
4. This notification shall be deemed have taken effect on the 1 st day of January, 2006:
Provided that in case of the consignments exported before the issuance of this notification, the
Collector of Sales Tax and Federal Excise may condone any act required to be done under this notification
other than the declaration of brand, which could not be done for the absence of this notification or
require such act to be done subsequently so as to facilitate the entertainment of genuine claims under
this notification.
Annex
[See paragraph 2(v)]
MONTHLY INVENTORY-CUM-PRODUCTION STATEMENT
Name of registered person _______________________________________________
Registration No.________________________________________________________
Month________________________________________________________________
Major Input Materials (including edible oils)
S. No. Description of Opening Procurement Total Quantity of Closing
raw material balance during the available raw material stock of
month consumed in raw
production material

Production
S. No. Description Opening stock of Quantity Quantity Supplied Closing stock
finished goods produced Local Export
during the
month

Signature
Name
Designation
NIC No.
Date
1 Para 3A inserted by Notification No. SRO 26(I)/2007, dated January 10, 2007.
2 Substituted for full stop by Notification No. SRO 443(I)/2007, dated May 31, 2007.
 114

3 Proviso inserted by Notification No. SRO 443(I)/2007, dated May 31, 2007.
________________

S.R.O. 308(I)/2008, dated March 24, 2008.– In exercise of the powers conferred by section 61 of
the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to allow repayment of sales tax paid on
steel products under Chapter XI of the Sales Tax Special Procedures Rules, 2007, to the registered
persons on the export from Pakistan of steel products as specified in column (2) of the Table below, at
the rates mentioned against each in column (3) of the said Table subject to the conditions specified in
paragraph 2.
1
[TABLE
1
[S. Description Repayment-cum-Drawback rate
No.
(1) (2) (3)
For export made against
invoices issued with immediate
effect.
1. Ingots or billets other than imported or of Pakistan Steel Rs.6,447 per metric ton.
Mills or Peoples Steel Mills.
2. Mild steel re-rolled products manufactured from ingots and Rs. 7,357 per metric ton.
billets other than imported or *Pakistan Steel Mills or of
People Steel Mills.
3. Mils steel re-rolled products manufactured from imported Rs. 8,526 per metric ton.]]
billets or billets of Pakistan Steel Mills or People Steel Mills.
2. The repayment under this notification shall be admissible subject to the fulfilment of the
following conditions, namely:–
(i) the sales tax liability in respect of exported goods has been discharged to the extent as
prescribed under rules 58H and 58Ha of the Sales Tax Special Procedures Rules, 2007;
(ii) the exporter shall file claim for repayment of sales tax to the concerned Collector of
Sales Tax and Federal Excise for the repayment on monthly basis, as and if due, within a
period of six months after the end of the tax period in which the goods were exported;
(iii) commercial exporters shall be entitled to the repayment of sales tax provided they make
direct procurements from the registered persons who are subject to sales tax under
aforesaid rules 58H and 58Ha.
(iv) the claimant shall submit duplicate goods declarations (in original) for export along with
the claim for repayment. In addition, he shall also furnish goods declarations (in original) for
import and original purchase invoices where the claim relates to serial number 3 of the Table
above or where the claim has been filed by commercial exporter. One set of photocopies of
aforesaid original documents shall also be submitted. The original supportive documents shall
be returned to the claimant after tallying with the photocopies by the officer-in-charge or any
officer authorized by the Collector in this behalf, who will record the following endorsement
under the full signatures and official stamp of the said officer, namely:-
“Zero-rating has been claimed on this Goods declaration/ invoice”.
(v) the exporters shall be required to furnish a monthly inventory-cum-production
statement to the concerned Collector in the format as set out in ‘Annex’ duly supported by
copies of goods declarations and purchase invoices. The statement shall be verified by the
Collectorate on quarterly basis through desk audit; and
 115

1 Table substituted by Notification No. SRO 802(I)/2012 dated June 30, 2012 w.e.f. July 01, 2012. Earlier it was substituted by
Notification No. SRO 596(I)/2012 dated June 01, 2012 w.e.f. June 02, 2012. Earlier it was inserted Notification No. SRO
317(I)/2010 dated May 06, 2010.
* Apparently the word “of” missing
(vi) the provisions of Export Policy and procedures shall apply to repayment under this
notification.
3. The Collectorates shall process the repayment claim in the same manner as prescribed under
Chapter V of the Sales Tax Rules, 2006, as far as applicable, and shall issue sanction order within a period
of thirty days of the receipt of claim along with all requisite documents.
4. This notification shall be deemed to have taken effect on the 1 st day of July, 2007.
Annex
[See paragraph 2(v)]
MONTHLY INVENTORY-CUM-PRODUCTION STATEMENT
Name of registered person ____________________________
Registration No. ____________________________
NTN ____________________________
Month ____________________________
S. Description Opening stock of Quantity produced/ Quantity Closing
No. finished goods obtained during the Supplied stock
month
Local Export
Certified that the tax of Rs. _____________ has been paid under rule 58H / 58Ha of the Sales Tax Special
Procedures Rules, 2007, in the above said month (Copy of paid bill/ challan enclosed).
__________________________ Signature
__________________________ Name
__________________________ Designation
__________________________ NIC No.
__________________________ Date
________________

S.R.O. 1231(I)/90, dated December 1, 1990.-- In exercise of the powers conferred by section 64
of the Sales Tax (Amendment) Act, 1990, and in supersession of the Central Board of Revenue
Notification No. S.R.O. 528(I)/88, dated the 26th June, 1988, the Federal Government is pleased to
prohibit the payment of drawback upon exportation of such cigarettes as are exported from Pakistan to
any port or territory by land route or to Afghanistan, Iran or China.
________________

S.R.O. 805(I)/93, dated September 13, 1993.-- WHEREAS the Federal Government is satisfied
that inadvertently and as a general practice, tax was not charged on the woollen fabrics (PCT 51.11)
supplied by M/s. Lawrancepur Woollen and Textile Mills Limited, a registered person, during the period
from the 7th June, 1990, to the 21st November, 1992;
AND WHEREAS the said registered person has started paying tax on the said supplies from the
22nd November, 1992, and did not recover any tax prior to that date;
NOW, THEREFORE, in pursuance of section 65 of the Sales Tax Act, 1990, the Federal
Government is pleased to direct that the tax not levied during the aforesaid period shall not be required
to be paid by the aforesaid registered person.
________________
 116

S.R.O. 824(I)/2000, dated November 8, 2000.– Whereas the Federal Government is satisfied
that, inadvertently and as a general practice, sales tax was short-charged and paid at the rate of 18%
instead of 23% on supplies of Urea Formaldehyde Resin (PCT Heading No. 3909.1000), Melamine Urea
Formaldehyde Resin (PCT Heading No. 3909.1000), Urea Formaldehyde Moulding Compound (PCT
Heading No. 3909.1010), Melamine Formaldehyde Moulding Compound (PCT Heading No. 3909.2000)
and Polystyrene Resin (PCT Heading No. 3903.1000) made by the registered persons, M/s. Dyno Pakistan
Limited, M/s. Rapid Ltd., and M/s. Pakistan Styrene (Pvt.) Ltd., located at Hub, Lasbella, during the period
from the 1st July, 1996 to the 27th March, 1997;
And whereas the said registered persons did not recover any tax in excess of 18% ad valorem till
the 27th March, 1997, and have started paying the tax on the prevailing applicable rate on the said
supplies with effect from the 28th March, 1997;
Now, therefore, in pursuance of section 65 of the Sales Tax Act, 1990, the Federal Government is
pleased to direct that the tax short-paid during the aforesaid period shall not be required to be paid by
the aforesaid registered persons.
________________

S.R.O. 837(I)/2000, dated November 20, 2000.– Whereas the Federal Government is satisfied
that, inadvertently and as a general practice, sales tax was not charged on hand-knotted carpets supplied
at retail stage by M/s. Afghan Carpet, Karachi, a registered person, during the period prior to the 1 st July,
2000;
And whereas the said registered person did not recover any tax prior to the 1 st July, 2000, and
has started paying the tax or is responsible to pay the tax on the said supplies with effect from the 1 st
July, 2000;
Now therefore, in pursuance of section 65 of the Sales Tax Act, 1990, the Federal Government is
pleased to direct that the tax not levied during the aforesaid period shall not be required to be paid by
the aforesaid registered person.
_______________

S.R.O. 215(I)/2002, dated April 10, 2002.– WHEREAS the Federal Government is satisfied that,
inadvertently and as a general practice, sales tax was not charged on loose or unbranded butter supplied
by M/s. Noon Pakistan Limited, Faisalabad, a registered person, during the period from the 1 st July, 1996
to the 10th November, 1999;
AND WHEREAS the said registered person did not recover any sales tax prior to the 10 th
November, 1999, and has started paying sales tax on such supplies with effect from the 11 th November,
1999;
NOW, THEREFORE, in pursuance of section 65 of the Sales Tax Act, 1990, the Federal
Government is pleased to direct that the tax not levied during the aforesaid period shall not be required
to be paid by the aforesaid registered person.
___________

S.R.O. 642(I)/2004, dated July 26, 2004.– In exercise of the powers conferred by proviso to
section 74 of the Sales Tax Act, 1990, the Central Board of Revenue is pleased to empower Collector of
Sales Tax to condone the time limit of payment in terms of section 73 beyond the prescribed period,
subject to the following conditions, namely:–
a) the payments have been made in accordance with the provisions of sub-section (1) of
section 73 of the Sales Tax Act, 1990;
b) the invoice relating to the transaction contains the full name, address and registration
number of both the supplier and the buyer besides other particulars specified in section 23
of the aforesaid Act; and
 117

c) the transaction does not involve any closed, de-registered or any person whose
registration has been blacklisted or suspended.
___________
S.R.O. 978(I)/2004, dated December 10, 2004.– In exercise of the powers conferred by proviso
to section 74 of the Sales Tax Act, 1990, the Central Board of Revenue is pleased to empower Collector of
Sales Tax to condone the time limit of adjustment / refund of input Sales Tax in terms of section 66,
beyond the prescribed period, subject to the following conditions, namely:–
(a) the payments have been made in accordance with the provisions of section 73 of the
Sales Tax Act, 1990;
(b) the invoice or goods declaration or bill of entry relating to the transaction contains the
full name, address and registration number of both the supplier and the buyer besides other
particulars specified in section 23 of the aforesaid Act;
(c) the transaction does not involve any closed, de-registered or any person whose
registration has been blacklisted or suspended; and
(d) adjustment / refund of the amount has not already been claimed.
___________
S.R.O. 1204(I)/2007, dated December 11, 2007.– In exercise of the powers conferred by proviso
to section 74 of the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to empower Collector
of Sales Tax having jurisdiction to allow extension up to the 31 st January 2008 for furnishing refund claims
pertaining to tax periods from July 2006 to September 2007 on the prescribed software along with the
supportive documents under rule 28 of the Sales Tax Rules, 2006, if the delay in filing of claim and
documents is due to –
(a) incorrect feeding of returns by the department;
(b) non-working of computer system in Collectorate or there was some error in the refund
claim preparation software (RCPS);
(c) incomplete data in Computerized Risk-based Evaluation of Sales Tax (CREST) System; or
(d) delay in getting certificate documents from other departments or agencies despite the
fact that the registered person applied for the same in time:
Provided that extension shall not be allowed by Collectors to registered persons filing
refund claims against revised returns and to blacklisted registered persons.
_______________

S.R.O. 394(I)/2009, dated May 21, 2009.– In exercise of the powers conferred by proviso to
section 74 of the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to empower every
Collector of Sales Tax to condone time limit where any time or period has been specified under any of
the provisions of the said Act or rules made thereunder within which any application is to be made or
any act or thing is to be done, so that he may, 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 he may consider appropriate, subject
to the following limitations and conditions, namely:–
(i) The person concerned or any person authorized by him shall submit an application to
the Collector having jurisdiction stating therein the grounds of delay for condonation of the
time limit;
(ii) if no further information or documents are required in respect of the case, the Collector,
shall take into consideration the grounds of delay and decide the case within thirty days
from the date of receipt of the application;
(iii) if the Collector is of the opinion that further information and documents are required in
respect of the case, he may ask for submission of such information and documents and after
 118

receipt of the requisite information and documents, take the case into consideration and
decide the case within forty-five days of the receipt of the application;
(iv) the Collector shall decide the case on merit and record the reasons for approval or
rejection of the application; and
(v) in the case of approval of the application, the Collector may condone the time limit up to
one year.
2. The Collector, shall, not later than seventh day of every month furnish, in soft form or
otherwise, to the concerned Director-General a report of cases processed in a calendar month, in the
following format, namely:–
S. Name of Sales Tax Date of initial Date of complete Date of Days
No. registered person Registration No. application information decision condoned
(1) (2) (3) (4) (5) (6) (7)
_______________

S.R.O. 47(I)/2008, dated January 15, 2008.– In exercise of the powers conferred by section 75 of
the Sales Tax Act, 1990, the Federal Government is pleased to declare that sub-section (8) of section
194A of the Customs Act, 1969, (IV of 1969), is made applicable to all appeals pending before the
Customs, Excise and Sales Tax Appellate Tribunals as have been filed by an officer of Sales Tax below in
rank to an Additional Collector.
_______________

S.R.O. 397(I)/2001, dated 18th June, 2001.– In exercise of the powers conferred by Serial No. 6 of
the Fifth Schedule to the Sales Tax Act, 1990, the Federal Government is pleased to direct that the
following locally manufactured plant and machinery for the purpose of zero-rated supply to a
manufacturer in the Export Processing Zone, 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 equipments specifically meant or adapted for use in
conjunction with the machinery specified in clause (a) above;
(iii) mechanical and electrical control and transmission gear, meant or adapted for use in
conjunction with machinery specified in clause (i) above; and
(iv) parts of machinery as specified in clauses (i), (ii) and (iii) above identifiable for use in, or
with such machinery.
2. The facility of zero-rating shall be admissible on the plant and machinery specified in this
notification subject to the following limitations, conditions and procedures, namely:-
(i) the supplier of the machinery is registered under the Sales Tax Act, 1990;
(ii) proper bill of export is filed showing sales tax registration number;
(i) the purchaser of the machinery is an established manufacturer located in the
Export Processing Zone and holds a certificate from the Export Processing Zone
Authority to that effect;
(ii) the purchaser submits an indemnity bond in proper form to the satisfaction of
the concerned Collector of Sales Tax that the machinery shall not be sold, transferred or
otherwise moved out of the Export Processing Zone before a period of five years from
the date of entry into the Zone without prior permission from the said Collector;
(iii) if the machinery is brought to tariff area of Pakistan, sales tax shall be charged
on the value assessed on the bill of entry; and
 119

(iv) breach of any of the conditions specified in this notification shall attract legal
action under the relevant provisions of the Sales Tax Act, 1990, besides recovery of the
amount of sales tax along with additional tax and penalties involved.
_________________

S.R.O. 342(I)/2002, dated 15th June, 2002. In exercise of the powers conferred by serial No. 6
of the Fifth Schedule to the Sales Tax Act, 1990, the Federal Government is pleased to specify that zero-
rating of sales tax shall be available only to supplies of locally manufactured plant and machinery to
petroleum and gas sector Exploration and Production Companies, including OGDC, their contractors and
sub-contractors, subject to the following conditions, namely:–
(i) zero-rating shall be allowed only in respect of such plant and machinery as is specifically
recommended by the relevant Regulatory Authority as defined in Annexure-VI to the
Petroleum Policy, 1994 in view of their project requirements;
(ii) such companies shall at the time of purchase of plant and machinery, furnish to the
Collector of Sales Tax an indemnity bond in the form at Annex-I and produce installation
certificate within two years of the purchase of such plant and machinery in the form at
Annex-II;
(iii) these companies shall be entitled to shift such plant and machinery from one project to
another project site as authorized by the Regulatory Authority; and
(iv) sales tax shall be payable in case such plant and machinery is sold to any unregistered person
before the expiry of seven years of the purchase.”
ANNEX-I
[See para (ii)]
INDEMNITY BOND
THIS DEED OF INDEMNITY is made on the ___ date of ______________ BETWEEN Messrs.
_________________________________________ having sales tax registration No.__________
thereinafter called “the purchaser” which means and includes their successors, administrators, executors
and assignees) of the one part, AND the President of Pakistan through the Collector of Sales Tax
_________ (hereinafter called the “Collector of the Sales Tax”, of the other part.
WHEREAS the Federal Government, by its decision contained in Notification No. S.R.O.
342(I)/2002, dated the 15th June, 2002 and subject to the conditions specified in the said Notification,
has been pleased to direct that such machinery shall be charged to sales tax at the rate of zero-percent,
in accordance with the said Notification.
NOW, THEREFORE, in consideration of the supply of the machinery without payment of sales tax, the
purchasers bind themselves to pay on demand to the Government of Pakistan the sum of Rs.
________________ being the sales tax leviable on the machinery at standard rate, along with additional tax
under section 34 of the Sales Tax Act, 1990, if the purchaser fails—
(i) to produce an installation certificate from Assistant Collector of Sales Tax of respective
jurisdiction within two year from the date of the purchase of the machinery, to the effect that
the machinery has been installed; and
(ii) to produce such other evidence as the Collector of Sales Tax may require to satisfy
himself that the plant or machinery has been installed in accordance with the conditions of
the said Notification.
The purchasers further agree and bind themselves that the amount covered by this Bond shall be
recovered as arrears of sales tax under section 48 of the Sales Tax Act, 1990.
This Bond shall be cancelled and returned when the aforesaid certificate has been produced and
the Collector of Sales Tax is satisfied that the purchaser have fulfilled all the conditions of this Bond in
the said Notification.
Signed by purchaser on this _________________ day of __________200____.
 120

________________________
Managing Director
(Name and permanent
address)

Collector of Sales Tax or

his
authorized officer
(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 BS-16 or above, an Oath Commissioner, a Notary Public or an officer of a
Scheduled Bank.
ANNEX-II
[See para (ii)]
INSTALLATION CERTIFICATE
File No.________________ Dated:______________
Certificate No.______________
(Progressive S.No. starting from 1st January every year)
I ________________________________ (name of Assistant Collector of Sales Tax), am satisfied
that the machinery purchased by Messrs. ____________________________________ having sales tax
registration No. _______________________under the provision of Notification No. S.R.O. 342(I)/2002,
dated the 15th June, 2002 vide Sales Tax invoice No.____________ dated ___________ issued by M/s.
____________________________________ having sales tax registration No._____________________
has been installed at the following location:
________________________________________________________.
Assistant Collector of Sales Tax.
________________
 121

th
Income Tax
S.R.O. 638(I)/2005, Islamabad, the 27 June, 2005.– In exercise of the powers conferred by sub-
section (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), read with clause (9) of Part II
of Second Schedule thereto, the Federal Government is pleased to notify the goods specified in column
(2) of the Table below, falling under the PCT Heading Number mentioned in column (3) of the said Table
to be the goods on which withholding tax under section 148 of the Ordinance shall be collected at the
rate of 1% of the import value, namely:–
TABLE
Sr. No. Description of goods PCT Heading Number
(1) (2) (3)
1 Leather and articles thereof 41.01 to 41.15,
64.03, 64.04 and other respective headings
2 Textile and articles thereof Chapter 50 to
Chapter 63 of PCT and other respective
headings
3 Carpets 57.01 to 57.05
4 Sports goods 9504.2000, 95.06 and other
respective headings
5 Surgical goods Respective headings
6 Maize (corn) starch 1108.1200
7 Mucilages and thickeners, whether or not
modified,
derived from locust beans, locust bean seeds
or guar seeds 1302.3200
8 Rattans 1401.2000
9 Emery Powder/grains 2513.2010
10 Magnesium oxide 2519.9010
11 Coning oil 2710.1991
12 Spin Finish Oil2710.1998
13 Silicon dioxide 2811.2200
1
[ ]
1
[ ]
16 Titanium dioxide 2823.0020
17 Antimony oxide 2825.8000
18 Sodium bromate 2829.9000
19 Sodium sulphide 2830.1000
20 Sodium hydrogen sulphide 2830.9010
21 Sodium dithionite 2831.1010
22 Sodium sulphite 2832.1000
23 Sodium hydrosulphite 2832.2020
24 Disodium sulphate 2833.1100
1 S. Nos. 14 & 15 and entries relating thereto omitted by Notification No. SRO 667(I)/2005, dated July 2, 2005.
S. Nos. 14 & 15–Omission.–Before omission by Notification No. SRO 667(I)/2005, dated July 2, 2005
S. Nos. 14 & 15 and entries relating thereto read as follows:–
 122

“14 Sodium Hydroxide (Caustic Soda), solid

2815.1100”
“15 Sodium Hydroxide (Caustic Soda), in aqueous
solution 2815.1200”
 123

25 Phosphinates (hypophosphites)
and phosphonates (phosphites) 2835.1000
1
[ ]
27 Sodium hydrogen carbonate (Sodium bicarbonate) 2836.3000
28 Hydrogen per oxide 2847.0000
29 p-Xylene 2902.4300
30 Methylene chloride 2903.1200
31 Trichloroethylene 2903.2200
32 Ethylene Glycol (MEG) 2905.3100
33 4-chloro 3-methyl phenol and chloro hydro quinone 2908.1010
34 Di-ethylene glycol 2909.4100
35 Ethyl glycol 2909.4400
36 Tri-ethylene Glycol 2909.4990
37 Glutar aldehyde 2912.1900
38 Methyl ethyl ketone 2914.1200
39 Formic acid 2915.1100
40 Sodium formate 2915.1210
41 Acetic acid 2915.2100
42 Sodium acetate 2915.2200
43 Cobalt acetate 2915.2300
44 Acrylic acid and its salts 2916.1100
45 Esters of Methacrylic acid 2916.1400
46 Oxalic acid 2917.1110
47 Adipic acid, its salts and esters 2917.1200
48 Maleic Acid 2917.1900
49 Pure terephthalic acid (PTA) 2917.3610
50 Tartaric acid 2918.1200
51 Citric acid 2918.1400
52 Gluconic acid and its salts 2918.1600
53 Glycolic acid and their esters 2918.1900
54 Other phosphoric esters and their salts 2919.0090
55 Dyes intermediates 2921.0000
2922.0000
2923.0000
2924.0000
2927.0000
2933.0000
2934.0000
56 Antioxident 2921.4500
1 S. No. 26 and entries relating thereto omitted by Notification No. SRO 667(I)/2005, dated July 2, 2005.
S. No. 26–Omission.–Before omission by Notification No. SRO 667(I)/2005, dated July 2, 2005 S. No.
26 and entries relating thereto read as follows:–
“26 Disodium carbonate( soda ash) 2836.2000”
 124

57 DMF (Dimethyl Formamide) 2924.1990

58 Acrylonitrile 2926.1000
59 Other organic derivatives of hydrazine
or of hydroxylamine 2928.0090
60 Tanning extracts of vegetable origin; tannins
and their salts, ethers, esters and other derivatives 3201.1000
3201.2000
3201.9020
3201.9090
61 Synthetic organic tanning substances, inorganic
tanning substances, tanning perpetrations,
whether or not containing natural tanning
substances; enzymatic preparations for pre-tanning 3202.1000
3202.9010
3202.9090
62 Disperse dyes and preparations based thereon 3204.1100
63 Acid dyes & preparation based thereon 3204.1200
64 Basic dyes and preparations based thereon 3204.1300
65 Direct dyes and perpetrations based thereon 3204.1400
66 Indigo Blue 3204.1510
67 Vat dyes and preparations bases thereon 3204.1590
68 Reactive dyes and perpetrations based thereon 3204.1600
69 Pigments and perpetrations based thereon 3204.1700
70 Dyes, sulphur 3204.1910
71 Dyes, synthetic 3204.1990
72 Synthetic organic products of a kind
used as fluorescent brightening agents 3204.2000
73 other synthetic organic colouring matter 3204.9000
74 Pigments and preparations
based on titanium dioxide 3206.1900
75 Other colouring matter and other preparations 3206.4900
76 Granules, flakes, powder of glass (others) 3207.4090
1
[ ]
78 Prepared water pigments of a kind
used for finishing leather 3210.0020
79 Ink for inkjet engraver 3215.1110
80 Anionic surface active agents 3402.1110
81 Anionic surface active agents 3402.1190
82 Cationic surface active agents 3402.1200
83 Non-ionic surface active agents 3402.1300
1 S. No. 77 and entries relating thereto omitted by Notification No. 78(I)/2006, dated January 31, 2006.
S. No. 77–Omission.–Before omission by Notification No. 78(I)/2006, dated January 31, 2006 Sr. No. 77 and entries relating
thereto read as follows:–
“77 Lacquer / Hardener/ Resin 3208.9090”
 125

1
84 [Surface active preparations and cleaning
preparations excluding detergents] 3402.9000
85 Preparations for the treatment of textile material,
leather, fur skins or other material 3403.1100
3403.1990
3403.9110
3403.9190
86 Spin Finish Oil 3403.9920
87 Artificial waxes and prepared waxes 3404.9010
88 Other artificial waxes 3404.9090
89 Electro polishing chemicals 3405.9000
90 Other glues (printing gum) 3505.2090
91 Shoe adhesives 3506.9110
92 Hot melt adhesive 3506.9990
93 Enzymes 3507.9000
94 Photographic film, with silver halide
emulsion (for textile use) 3702.3900
95 Sensitizing emulsions (for textile use) 3707.1000
96 Lignin sulphonates 3804.0000
97 Gum rosin 3806.1010
98 Fungicides for leather industry 3808.2000
99 Preparation of a kind used in textile or like industry 3809.9100
100 Preparation of a kind used in leather or like industries 3809.9300
101 Compound plasticizers for rubber or plastics 3812.2000
102 Antimony triacetate 3815.1910
103 Palladium catalyst 3815.9000
104 Electrolyte salt 3824.9060
105 Prepared binders for foundry moulds including
Peroxide stabilizer & Nickel salt 3824.9099
106 Polymers of vinyl acetate (in aqueous dispersion) 3905.1200
107 Vinyl acetate copolymers: in aqueous dispersion 3905.2100
108 Polymers of vinyl alcohol 3905.3000
109 Other vinyl polymers 3905.9990
110 Other acrylic polymers 3906.9000
111 Acrylic polymers in primary forms 3906.9090
112 Polyethylene terephthalate-Yarn grade, and its waste 3907.6010
113 Nylon Chips (PA6) 3908.9000
114 Polyurethanes 3909.5000
115 Silicones in primary form 3910.0000
116 Cellulose nitrates nonplasticised 3912.2010
117 Other cellulose nitrates 3912.2090
118 Carboxymethyl cellulose and its salts 3912.3100
1 Substituted for “Surface active preparations (including auxiliary washing preparations) and cleaning preparations” by
Notification No. 667(I)/2005, dated July 2, 2005.
 126

119 Alginic acids, its salts and esters 3913.1000

120 Nylon Tubes 3917.3900
121 Artificial leather 3921.1300
122 Synthetic leather grip 3926.9099
123 Natural rubber latex 4001.1000
124 Technical specialized natural rubber 4001.2200
125 Rubber latex 4002.1100
126 Synthetic rubber SBR 1502 latex 4002.1900
127 Butadiene rubber 4002.2000
128 Thermo-Plastic Rubber (T.P.R.) 4002.9900
129 Vulcanized rubber thread and cord 4007.0010
130 Leather shearing-Finish leather with wool 4302.1300
131 Articles of apparel and clothing
accessories of fur skin 4303.9000
132 Artificial fur and articles thereof 4304.0000
133 English willow cleft (wood) 4404.1010
134 Cork Granules 4501.9000
135 Cork sheet 4504.1010
136 Satin Finishing Wheels 6804.2100
137 Carbon Fiber 6815.1000
138 Glass fiber sleeves 7019.3200
139 Shoe tacks 7317.0020
140 Forging of surgical and dental instruments 7326.1920
1
141 Nickel [not alloyed] 7502.1000
142 Nickel rotary printing screens 7508.9010
143 Hooks for footwear 8308.1010
144 Eyes and eyelets for footwear 8308.1020
145 Tubular or bifurcated rivets 8308.2000
146 Strings 8308.9090
147 Bladders and covers of inflatable balls 9506.9910
148 Press-fasteners, snap fasteners and press studs 9606.1000
149 Buttons of plastics not covered with textile material 9606.2100
150 Buttons of base metal not covered with textile material 9606.2200
151 Studs 9606.2910
152 Slide fasteners fitted with chain scoops of base metal 9607.1100
9607.1900
1 Substituted for “Anode (others)” by Notification No. 87(I)/2006, dated February 4, 2006.
----------------
S.R.O. 947(I)/2008, dated 5th September 2008.– In exercise of the powers conferred by sub-
section (2) of section 148 read with clause (b) of sub-section (3) of section 159 of the Income Tax
Ordinance, 2001 (XLIX of 2001), hereinafter referred to as “the Ordinance” and in supersession of its
Notification No. SRO.593(I)/91, dated the 30th June, 1991, the Federal Board of Revenue is pleased to
specify the following to be classes of persons to whom the provisions of sub-section (1) of section 148
shall not apply, namely:–
(i) the Federal Government;
 127

(ii) a Provincial Government;

(iii) a Local Government;
(iv) a foreign company and its associations whose majority share capital is held by a foreign
government;
(v) person who imports plant, machinery, fixtures, fittings or its allied equipments for the
purposes of setting up an industrial undertaking (including hotels) owned by such person, or
for installation of an existing industrial undertaking (including hotels) owned by the person and
a certificate to that effect from the Commissioner of income tax, in respect of such plant,
machinery, fixtures, fittings or equipments is produced. The Commissioner, however, shall issue
exemption certificate subject to the following conditions, namely:-
(a) in the case of new industrial undertaking, the taxpayer is not likely to pay any tax on his
income from business under the Ordinance, in the tax year in which import is made;
(b) in the case of existing industrial undertaking, the taxpayer is not likely to pay any tax on
income from business under the Ordinance, due to brought forward assessed losses or
depreciation allowance in the tax year in which the import is made; and
(c) in the case of an industrial undertaking or a person whose entire income is subject to
final taxation being covered under sub-section (8) of section 148 or sub-section (6) of section
153 or sub-section (4) of section 154 of the Ordinance and the taxpayer is not likely to pay any
further tax under the Ordinance, in the tax year in which the import is made;
(vi) a person who imports plant and machinery for execution of a contract with the Federal
Government or a provincial government or a local government and produces a certificate from
that government;
(vii) companies importing high speed diesel oil, light diesel oil, high octane blending
component or kerosene oil, crude oil for refining and chemical used in refining thereof in
respect of such imports; and
(viii) Petroleum (E&P) companies covered under the Customs and Sales Tax Notification No.
S.R.O.678 (I)/2004, dated the 7th August, 2004, except motor vehicles imported by such
companies.
2. The Federal Board of Revenue is pleased to empower Commissioner of Income Tax concerned in
accordance with the provisions of clause (b) of sub-section (3) of section 159 of the Ordinance to issue
system based exemption certificate only (through computer) in the cases mentioned at clause (v) above,
on case to case basis.
----------------
S.R.O. 593(I)/91, dated 30th June, 1991.–In exercise of the powers conferred by the Proviso to
sub-section (5) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979), hereinafter referred to as
the ordinance, and in supersession of its Notification No. SRO 658(I)/81 dated 25th June, 1981, the
Board is pleased to specify the following to be the classes of persons to whom the said sub-section shall
not apply, namely:–
(i) a Provincial Government;
(ii) a local authority;
(iii) foreign companies and other associations whose share capital is substantially held by a
foreign Government;
1
[ ]
1 Clause (iv) superseded by Finance Act, 2006 by insertion of clause (13G) of Part II, Second Schedule to the Income Tax
Ordinance, 2001. Earlier it was substituted by Notification No. SRO 1203(I)/91, dated November 25, 1991.
Clause (iv)–Superseded.–Before supersession by Finance Act, 2006 clause (iv) read as under:
“(iv) persons who import plant, machinery, fixtures, fittings or any other equipment for purposes of
setting up an industrial undertaking (including hotels) owned by such persons, or for installation in an existing
industrial undertaking (including hotels) owned by them, and a certificate to that effect from the Commissioner
of Income Tax, in respect of such plant, machinery, fixture, fittings or equipment, is produced;”
 128

(v) persons who import plant or machinery for execution of a contract with the Federal
Government or a Provincial Government and produce a certificate from the Government.
1
[ ]
(vii) companies importing high speed diesel oil, light diesel oil, high octane blending
component or kerosene oil in respect of such imports; 2[ ]
(viii) companies importing crude oil for refining and chemicals used in refining thereof in
respect of such imports 3[; and]
4
[ ]
2. This notification shall be effective from the first day of July, 1991.”
1 Clause (vi) omitted by Notification No. SRO 669(I)/2007, dated July 2, 2007.
2 Word “and” omitted by Notification No. SRO 68(I)/93, dated January 27, 1993.
3 Substituted for full-stop by Notification No. SRO 68(I)/93, dated January 27, 1993.
4 Clause (ix) omitted by Notification No. SRO 669(I)/2007, dated July 2, 2007.
Clause (iv)–Substitution.–Before substitution by Notification No. SRO 1203(I)/91 dated November 25, 1991 clause (iv)
read as under:
“(iv) persons who import plant, machinery, fixtures, fittings or any other equipment for the purposes of
setting up an industrial undertaking (including hotels) approved by the Federal Government in respect of such
plant, machinery, fixtures, fittings, or any other equipment;”
Clause (vi)–omission.–Before omission by Notification No. SRO 669(I)/2007, dated July 2, 2007 clause (vi) read as
under:
“(vi) Persons, other than commercial importers, who produce a certificate from the Commissioner of
Income Tax concerned to the effect that:–
(a) their income during the income year is exempt from tax under the Second Schedule to the
ordinance;
(b) their income during the income year is not likely to be chargeable to tax; or
(c) no tax is likely to be payable by them on their income during the income year on account of any
brought-forward loss, depreciation allowance or tax credit;”
Clause (ix)–omission.–Before omitted by Notification No. SRO 669(I)/2007, dated July 2, 2007 clause (ix) read as
under:
“(ix) manufacturer whose sale are hundred percent (100%) exports and who furnishes an undertaking
to the concerned Commissioner of Income Tax, to the effect that the imported raw materials shall be exclusively
used and wholly consumed in production of goods which shall be exported and produces a certificate from the
concerned Commissioner of Income Tax that these requirements have been fulfilled:
Provided that if it is later discovered that the assessee did not use the imported raw materials in
the manufacture of goods to be exported or that his sales were not hundred percent (100%) exports, such as
assessee shall be treated as an assessee in default in respect of the tax that was payable under sub-section (5)
of section 50 of the said Act on the imported raw materials but was not recovered by virtue of the said
certificate, and action shall be taken accordingly.”
----------------
th
S.R.O. 658(I)/81, dated 25 June, 1981.– In exercise of the powers conferred by the proviso to
sub-section (5) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979), hereinafter referred to as
the Ordinance, and in supersession of its Notification No. S.R.O. 737(I)/80, dated the 10th July, 1980, the
Central Board of Revenue is pleased to specify the following to be the classes of persons to whom the
said sub-section shall not apply, namely:–
(i) a Provincial Government;
(ii) a local authority;
(iii) foreign companies and other associations whose share capital is substantially held by a
foreign government;
(iv) persons who import plant, machinery fixtures, fittings or any other equipment for the
purposes of setting up an industrial undertaking (including hotels) approved by the Federal
Government in respect of such plant, machinery, fixtures, fittings, or any other equipment;
(v) persons who import plant or machinery for execution of a contract with the Federal
government or a Provincial Government and produce a certificate from the Government
concerned to this effect;
 129

(vi) persons who produce a certificate from the Commissioner of Income Tax concerned to
the effect that their income during the income year is exempt from tax or is not likely to be
chargeable to tax;
(vii) companies importing high speed diesel oil, light diesel oil, high octane blending
component or kerosene oil in respect of such imports; and
(viii) companies importing crude oil for refining and chemicals used in refining thereof in
respect of such imports.
2. This notification shall be effective from the first day of July, 1981.
----------------
S.R.O. 659(I)/81, dated 25th June, 1981.– In exercise of the powers conferred by clause (ii) of the
proviso to sub-section (4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979), hereinafter
referred to as the Ordinance, and in supersession of its Notification No. S.R.O. 738(I)/80, dated the 10th
July 1980, the Central Board of Revenue is pleased to specify the following to be the recipients, or the
classes of recipients, to whom the said sub-section shall not apply, namely:–
(i) a Provincial Government;
(ii) a local authority;
(iii) persons who are residents of the Tribal Areas or Areas or Azad Kashmir and execute
contracts in Tribal Areas, or as the case may be, Azad Kashmir only and produce a certificate to
this effect from the Political Agent concerned or the district authority, as the case may be, or in
the case of Azad Kashmir, from the Income Tax Officer concerned.
(iv) persons who produce a certificate from the Commissioner of Income tax to the effect
that their income during their income year is exempt from tax or is not likely to be chargeable
to tax;
(v) persons from whom income-tax has been deducted under sub-section (4) of section 50
and the aggregate of the tax deducted under the said sub-section is equal to or exceeds the tax
payable under section 53 of the Ordinance in respect of that income year, not being persons by
whom no tax is payable under the said section 53, and a certificate to that effect from the
Commissioner of Income Tax is produced by such persons;
(vi) persons who have paid tax at source under sub-section (6) of section 50 of the
Ordinance in respect of transport vehicles used in executing a contract for carriage of goods or
passengers where the payment relates to such contract:
Provided that where the amount of tax deductible under sub-section (4) of
section 50 of the Ordinance in respect of the aforesaid payment exceeds the amount deducted
under the aforesaid sub-section (6), the payer shall deduct only such sum as is in excess
thereof;
(vii) person receiving payments from a company exclusively for the supply of agricultural
produce which has not been subjected to any process other than that which is ordinarily
performed to render such produce fit to be taken to market;
(viii) companies receiving payments for the supply of electricity and gas;
(ix) companies receiving payments for the supply of crude oil;
(x) Attock Refinery Ltd., National Refinery Ltd., and Pakistan Refinery Ltd., receiving
payments for the supply of their products; and
(xi) Pakistan State Oil Company Ltd., Pakistan Burmah Shell Ltd. and Caltex Oil (Pakistan) Ltd.,
receiving payments for the supply of petroleum products.
2. This notification shall be effective from the first day of July, 1981. – [1(26)IT-I/80, dated
25.6.1981].
----------------
S.R.O. 647(I)/2011, dated 25th June, 2011.– In exercise of the powers conferred by section 183
of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Government is pleased to exempt penalty
and default surcharge as provided under the said Ordinance in cases where,–
 130

(i) the withholding agents have not deducted advance withholding tax as required under
the Income Tax Ordinance, 2001 (XLIX of 2001): or
(ii) the withholding agents have deducted or withheld income tax but not deposited the tax
deducted or withheld within due dates as prescribed under the Income Tax Ordinance. 2001
(XLIX of 2001)
and the withholding agents, specified in clauses (i) and (ii) above, deposit the due amount of tax in the
Government treasury on or before 301h June, 2011.
2. Nothing in this notification shall entitle any person to claim or take refund of any amount of
penalty or surcharge already paid by or recovered from him before the issuance of this Notification.
3. In a case where refund becomes due to any person in consequence of a decision or judgment
of court at any stage after the issuance of this Notification, the tax deposited by that person under this
Notification shall be refunded to him.
----------------
SRO 594(I)/91.–In exercise of the powers conferred by the proviso to sub-section (2A) of section
50 of the Income Tax Ordinance, 1979 (XXXI of 1979), hereinafter referred to as the Ordinance, and in
supersession of S.R.O. 484(I)/84, dated 14th June, 1984, the Central Board of Revenue, is pleased to
specify the following to be the classes of recipients to whom the said sub-section shall not apply,
namely:–
1
[(i) Federal Government;
(ia) a Provincial Government;]
(ii) a local authority;
(iii) recipients who qualify for exemption under clauses (78), (78A) and (79) of the Second
Schedule to the Ordinance; 2[ ]
(iv) a banking company receiving interest on inter-bank deposits from another banking
company 3[;]
4
[(v) Any person who produces a certificate from Commissioner of Income Tax to the effect
that the recipients income during the income year is exempt from tax, under the Ordinance or
any other law for the time being in force.]
2. This notification shall take effect from 1.7.1991.”
1 Clause (i) & (ia) substituted for clause (i) by Notification No. SRO 932(I)/91, dated September 19, 1991.
2 Word “and” omitted by Notification No. SRO 932(I)/91, dated September 19, 1991.
3 Substituted for full stop by Notification No. SRO 932(I)/91, dated September 19, 1991.
4 Clause (v) inserted by Notification No. SRO 932(I)/91, dated September 19, 1991.
----------------
SRO 586(I)/91, dated June 30, 1991.–In exercise of the powers conferred by clause (ii) of the
proviso to sub-section (4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979), hereinafter
referred to as the Ordinance, and in supersession of its Notification No. S.R.O. 659(I)/81 dated the 25th
June, 1981, the Central Board of Revenue is pleased to specify the following to be the recipients, or the
classes of recipients, to whom the said sub-section shall not apply, namely:–
(i) a Provincial Government;
1
(ii) [a local government];
(iii) persons who are residents of the Tribal Areas or Azad Kashmir and execute contracts in
Tribal Areas or as the case may be, Azad Kashmir only and produce a certificate to this effect
from the Political Agent concerned or the district authority, as the case may be, or in the case
of Azad Kashmir, from the Income Tax Officer concerned.
(iv) persons who produce a certificate from the Commissioner of Income Tax to the effect
that their income during the income year is exempt from tax 2[ ];
1 Substituted for “a local authority” by Notification No. SRO 1161(I)/2010 dated December 31, 2010.
2 Words etc. “under the Second Schedule to the Income Tax Ordinance, 1979” omitted by Notification No. SRO 626(I)/91 dated
July 4, 1991 w.e.f. July 1, 1991. As explained in CBR’s Circular No. 19 of 1991 dated July 8, 1991, this amendment has been
 131

made to enlarge the scope of exemption so as to “apply to all recipients whose income is exempt from tax under any
provision of the Income Tax Ordinance, 1979, or any other law.”
 132

(v) persons receiving payments from a company 1[or an Association of Persons (AOP) having
turnover of fifty million rupees or above] 2[or an individual having turnover of fifty millions
rupees or above] exclusively for the supply of agricultural produce 3[, including fresh milk,]
4
[live chicken birds and eggs by any 5[growers/producers of agricultural produce] engaged in
poultry farming and by an industrial undertaking engaged in poultry processing] which has not
been subjected to any process other than that which is ordinarily performed to render such
produce fit to be taken to market;
(vi) companies receiving payments for the supply of electricity and gas;
(vii) companies receiving payments for the supply of crude oil;
(viii) Attock Refinery Limited, National Refinery Limited and Pakistan Refinery Limited
receiving payments for the supply of their products;
(ix) Pakistan State Oil Company Limited, 6[Shell Pakistan Limited], and Caltex Oil (Pakistan)
Limited, receiving payments for the supply of petroleum products.
(x) Hotels and restaurants receiving payments in cash for providing accommodation or food
or both as the case may be;
(xi) shipping companies and air carriers receiving payments for the supply of passenger
tickets and for the cargo charges of goods transported;
7
[(xii) Persons receiving payments–
(a) not exceeding rupees twenty-five thousand on account of supply of goods, in a financial
year; and
(b) not exceeding rupees ten thousand on account of services rendered or execution of a
contract, in a financial year:
Provided that where the total payments in a financial year, exceed rupees
twenty-five thousand on account of supply of goods, or rupees ten thousand on account of
services rendered or execution of a contract, the payer shall deduct tax from the payments
including the tax on payments made earlier without deduction of tax during the same
financial year;]
8
[(xiii) persons receiving payments for supply of cotton seed 9[;] ]
10
[(xiv)persons, being manufacturers of goods, who produce a certificate from the
Commissioner of Income Tax concerned to the effect that their income during the income year
is not likely to be chargeable to tax due to assessed losses carried forward;
(xv) persons, being owner of one goods transport vehicle, receiving payment once in a
financial year from a payer on account of carriage of goods on behalf of such payer on a single
journey undertaken during the said financial year 11[;]
12
[(xvi)persons, other than those whose income is liable to tax under section 80C, who produce
a certificate from the Commissioner of Income Tax to the effect that their income during the
income year is not likely to be chargeable to tax due to assessed losses carried forward; and]
1 Words etc. inserted by Notification No. SRO 1248(I)/2008 dated December 4, 2008.
2 Words inserted by Notification No. SRO 1161(I)/2010 dated December 31, 2010.
3 Commas and words inserted by Notification No. SRO 593(I)/94 dated June 12, 1994.
4 Words etc. inserted by Notification No. SRO 379(I)/2002 dated June 15, 2002.
5 Substituted for “person” by Notification No. SRO 1161(I)/2010 dated December 31, 2010.
6 Substituted for “Pakistan Burmah Shell Limited” by Notification No. SRO 282(I)/94 dated March 31, 1994.
7 Clause (xii) substituted by Notification No. SRO 826(I)/91 dated August 24, 1991.
8 Clause (xiii) inserted by Notification No. SRO 631(I)/91 dated June 30, 1991, w.e.f. July 1, 1991.
9 Substituted for full stop by Notification No. SRO 826(I)/91 dated August 24, 1991, w.e.f. July 1, 1991.
10 Clauses (xiv) and (xv) inserted by Notification No. SRO 826(I)/91 dated August 24, 1991. w.e.f. July 1, 1991.
11 Substituted for full stop by Notification No. SRO 1100(I)/91 dated October 28, 1991.
12 Clause (xvi) inserted by Notification No. SRO 1100(I)/91 dated October, 28, 1991.
 133

1
[(xvii)persons, other than those whose income is liable to tax under section 80B or 80C, from
whom tax has been deducted under sub-section (4) of section 50 and the aggregate of the tax
deducted under the said sub-section is equal to or exceeds the tax payable under section 53 of
the Ordinance in respect of that income year and a certificate to that effect from the
Commissioner of Income Tax is produced by such persons.]
2. This notification shall have effect from the first day of July, 1991.
1 Clause (xvii) substituted by Notification No. SRO 1122(I)/91 dated November 5, 1991. Earlier it was inserted by Notification
No. SRO 1100(I)/91 dated October 28, 1991.
----------------
SRO 600(I)/91 dated July 2, 1991.–In exercise of the powers conferred by clause (c) of sub-
section (4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979), and in supersession of its
Notification No. 707(I)/80, dated 26th June, 1980, the Central Board of Revenue is pleased to specify the
special rate specified in the table below for deduction of advance tax under the said sub-section in
respect of the payments specified in the table.
TABLE
Payments Rate
1
[ ]
(ii) Payments on account of supply of
cotton lint. One per cent.
(iii) Payments on account supply of raw
wool. One per cent.
2
[ ]
3
[(v) payments on account of supply of
rice. One per cent.]
4
[ ]
5
[(vii) Payments on account of supply of
motor vehicles to
government departments and Corporations. 0.75%]
6
[(viii) Payment on account of supply of
iron & steel items like
M.S. bars, angle iron, tee iron and girders, 7[ ] received by
suppliers of these items which are not manufactured by them. 1.25 per cent.]
8
[(ix) Payments on account of Morabaha
transactions made
by a modaraba or an Investment Bank. One per cent.]
2. This Notification shall have effect from the first day of July, 1991.
1 Clause (i) omitted by Finance Act, 2006. It read “Payment on account of supply of raw hides and skins ... one per cent”.
2 Clause (iv) omitted by Finance Act, 2006.
3 Clause (v) inserted by Notification No. SRO 1216(I)/91 dated November 25, 1991 w.e.f. July 1, 1991.
4 Clause (vi) omitted by Notification No. SRO 629(I)/94 dated June 27, 1994. w.e.f. July 1, 1994. Earlier it was inserted by
Notification No. SRO 297(I)/92 dated April 26, 1992 w.e.f. April 1, 1992. The clause read as follows:–
“(vi) Payments on account of supply of cotton seed oil. 0.75 per cent.”
5 Clause (vii) inserted by Notification No. SRO 551(I)/92 dated June 2, 1992 for the assessment year 1991-92 only.
6 Clause (viii) inserted by Notification No. SRO 895(I)/92 dated September 15, 1992 w.e.f. August 9, 1992 to remain valid till
June 30, 1993.
7 Word “etc.” omitted by corrigenda notification dated December 7, 1992.
8 Clause (ix) substituted by Notification No. SRO 413(I)/94 dated May 29, 1994. Earlier it was inserted by Notification No. SRO
181(I)/93 dated March 2, 1993 as follows:–
“(ix) Payments on account of Morabaha transactions made by a modaraba. one per cent.
----------------
SRO 828(I)/91 dated August 24, 1991.–In exercise of the powers conferred by clause (ii) of the
proviso to sub-section (4) of section 50 of the Income tax Ordinance, 1979 (XXXI of 1979), hereinafter
 134

referred to as the Ordinance, and in supersession of its Notification No. SRO 625(I)/91, dated 4th July,
1991, the Central Board of Revenue is pleased to specify the following to be the payers, or the classes of
payers, to whom the said sub-section shall not apply, namely:–
(i) Companies whose paid-up capital as per the balance sheet in respect of the latest year
for which the assessment stood completed before the first day of July 1991, is below Rs. 1.5
million;
(ii) Registered firms whose capital (i.e. closing balances of partners’ capital accounts) as per
the balance sheet in respect of the latest year for which the assessment stood completed
before the first day of July 1991, is below Rs. 1.5 million;
(iii) Persons, being exporters of goods, making payments on account of supply of such goods
as are purchased in respect of goods exported outside Pakistan:
Provided that–
(a) the said persons shall deduct tax on account of goods purchased in respect of goods sold
in Pakistan;
(b) if tax has not been deducted from payments on account of supply of goods in respect of
goods sold in Pakistan, the said tax shall be paid by the said persons, if the sales in Pakistan
are in excess of five percent of export sales; and
(c) nothing contained in this clause shall apply to payments made on account of purchase of
such goods in respect of which special rates of tax deduction have been specified in exercise
of the powers under clause (c) of sub-section (4) of section 50 of said Ordinance.
2. This Notification shall take effect from the first day of July, 1991.
----------------
SRO 368(I)/94 dated 7th May, 1994.–In exercise of the powers conferred by clause (ii) of the
proviso to sub-section (4) of section 50 of the Income-tax Ordinance, 1979 (XXXI of 1979), hereinafter
referred to as the Ordinance, and in supersession of its Notification No. S.R.O. 828(I)/91, dated 24th
August, 1991, the Central Board of Revenue is pleased to specify the following to be the payers, or the
classes of payers to whom the said sub-section shall not apply, namely:–
(i) Companies whose paid-up capital is below Rs. 1.5 million;
(ii) Registered firms whose capital (total of closing balances of partners’ capital accounts) as
per the balance sheet in respect of the latest assessment year is below Rs. 1.5 million;”
(iii) Persons, being exporters of goods, making payments on account of supply of such goods
as are purchased in respect of goods exported outside Pakistan:
Provided that–
(a) the said persons shall deduct tax on account of goods purchased in respect of goods sold
in Pakistan;
(b) if tax has not been deducted from payments on account of supply of goods in respect of
goods sold in Pakistan, the said tax shall be paid by the said persons, if the sales in Pakistan
are in excess of five percent of export sales; and
(c) nothing contained in this clause shall apply to payments made on account of purchase of
such goods in respect of which special rates of tax deduction have been specified in exercise
of the powers under clause (c) of sub-section (4) of section 50 of said Ordinance.
2. This Notification shall be deemed to have taken effect from 1st day of July, 1991. – (30/1991
dated 27.8.1991).
----------------
 135

st
Federal Excise
S.R.O. 651(I)/2005, Islamabad, the 1 July, 2005.– In exercise of the powers conferred by sub-
section (1) of section 3 of the Federal Excise Act, 2005, the Central Board of Revenue is pleased to fix the
minimum retail price (excluding sales tax), as specified in column (3) of the table below, of the goods
specified in column (2) thereof, falling under Heading/sub-heading specified in column (1) of the said
table, namely:–
Table
Heading/ sub-heading Description ofMinimum retail price
Number goods
(1) (2) (3)
24.02 Cigarettes Eighty-four per cent of the retail price given in S. No. 11 of
Heading No. 24.02, in Table-I of the First Schedule to the
Federal Excise Act, 2005.
2. This notification shall take effect from the 1st day of July, 2005
___________

*
S.R.O. 1299(I)/2005, Islamabad, the 31st December, 2005.– In exercise of the powers conferred
by clause (b) of sub-section (3) of section 3 of the Federal Excise Act, 2005, the Central Board of Revenue
is pleased to levy fixed amount of Federal Excise Duty at the import stage, on the items mentioned in
column (1) of the Table below, falling under the PCT heading numbers mentioned in column (2) of the
said Table, at the rate specified in column (3) of that Table, in lieu of the Federal Excise Duty payable at
production or manufacturing stage of the said items, namely:–
Table
Item description Heading numbers in the First Schedule to the Customs Act, Rate of duty
1969 (IV of 1969)
(1) (2) (3)
Edible oils and vegetable 1507.9000, 1508.9000, 1509.1000, 1509.9000, 1510.0000, One rupee per Kg
ghee, including cooking 1511.9010, 1511.9020, 1511.9030, 1512.1900, 1513.1900,
oil 1513.2900, 1514.1900, 1514.9900, 1515.2900, 1515.5000,
1516.2010, 1516.2020, 1517.1000, 1517.9000 and
1518.0000
* SUPERSEDED by Notification No. SRO 24(I)/2006 dated January 7, 2006.
___________

S.R.O. 24(I)/2006, Islamabad, the 7th January, 2006.– In exercise of the powers conferred by
clause (b) of sub-section (3) of section 3 of the Federal Excise Act, 2005, and in supersession of its
Notification No. S.R.O. 1299(I)/2005, dated the 31 st December, 2005, the Central Board of Revenue is
pleased to levy fixed amount of federal excise duty at the import stage, on the items specified in column
(2) of the Table below, falling under PCT heading numbers specified in column (3) of the said Table, at the
rate specified in column (4) of that Table, in lieu of federal excise duty payable at production or
manufacturing stage of the said items, namely:–
TABLE
S. Item description Heading numbers in the First Schedule to the Rate of duty
No. Customs Act, 1969 (IV of 1969)
(1) (2) (3) (4)
1 Edible oils excluding epoxidized 15.07, 15.08, 15.09, 15.10, 15.11, 15.12, One rupee per
soyabean oil falling under heading 15.13, 15.14, 15.15, 1516.2010, 1516.2020, kg.
15.18. 15.17, 15.18.
2. Vegetable ghee and cooking oil. Respective headings. One rupee per
kg.
 136

___________

*
S.R.O. 777(I)/2006, Islamabad, the 1 st August, 2006.– In exercise of the powers conferred by
sub-section (4) of section 3 of the Federal Excise Act, 2005, the Federal Government is pleased to specify
in columns (3) and (4) of the table below, the rates of excise duty chargeable on the tickets issued for the
services of travel by air on international journey originating from Pakistan for the destinations mentioned
in column (2) thereof whether the tickets for such journey are issued in Pakistan or abroad:
TABLE
S. Destinations Rate of excise duty in Pak rupees
No. Economy class and Premier, club, business
economy plus and first class
(1) (2) (3) (4)
1. SAARC region, UAE (Middle East), Saudi Arabia, 1500 2500
Africa, Afghanistan
2. Europe, Far East, China, USA, Canada, Australia, 2500 4000
South America, others.
* RESCINDED by Notification No. SRO 603(I)/2012 dated June 1, 2012 w.e.f. June 2, 2012.
___________

S.R.O. 364(I)/2007, Islamabad, the 3rd May, 2007.– In exercise of the powers conferred by sub-
section (4) of section 3 of the Federal Excise Act, 2005, the Federal Government is pleased to direct that
the excise duty leviable on the services provided by Cable TV operators shall be charged at the rate of
eight rupees per subscriber per month with immediate effect.
___________

*
S.R.O. 410(I)/2008, Islamabad, the 29th April, 2008.– In exercise of the powers conferred by
sub-section (4) of section 3 of the Federal Excise Act, 2005, and in supersession of Federal Excise Duty
rates prescribed against S.No.3 of Table-II of the First Schedule to the Federal Excise Act, 2005, the
Federal Government is pleased to levy Federal Excise Duty on the services mentioned in column (1) of
the table below, at the rates in column (3) thereof, with immediate effect.–
TABLE
Description of services Heading/ sub- Rate of duty
heading No.
(1) (2) (3)
Facilities for travel 98.03
(a) Services provided or rendered in 9803.1000 Fifteen per cent of the charges plus
respect of travel by air of the twenty rupees per ticket
passenger within the territorial
jurisdiction of Pakistan
(b) Services provided or rendered in 9803.1100
respect of travel by air of the
passengers embarking on
international journey to or from
Pakistan
(i) Passengers embarking to or Three thousand two hundred and forty
from SAARC region, UAE rupees for economy and economy plus
(Middle East), Saudi Arabia, classes and four thousand two hundred
Africa, Afghanistan and forty rupees for club, business and
first classes.
(ii) Passengers embarking to or Four thousand two hundred and forty
from Europe, Far East, China, rupees for economy and economy plus
USA, Canada, Australia, South classes and five thousand seven
America, others. hundred and forty rupees for club,
business and first classes.
 137

* RESCINDED by Notification No. SRO 545(I)/2008 dated June 11, 2008.

___________

*
S.R.O. 200(I)/2011, Islamabad, the 14 th March, 2011.– In exercise of the powers conferred by
clause (c) of sub-section (1) of section 3 and section 16 of the Federal Excise Act, 2005, the Federal
Government is pleased to direct that the goods produced or manufactured in the non-tariff areas
included in the Prime Minister’s Fiscal Relief to Rehabilitate the Economic Life in Khyber Pakhtunkhwa,
FATA and PATA, namely, Bajur Agency, Mohammad Agency, Khuyber Agency, Orakzai Agency, Kurram
Agency, North Waziristan Agency, South Waziristan Agency, Malakand Agency, District Swat, District
Buner, District Shangla, District Upper Dir and District Lower Dir, shall be exempt from the whole or the
duties levied under the Federal Excise Act, 2005, if brought to the tariff areas.
2. This Notification shall not be applicable to cement, sugar, beverages and cigarettes sectors and
shall be deemed to have taken effect on and from the 1 st day of January, 2010.
* RESCINDED by Notification No. SRO 500(I)/2013 dated June 12, 2013.
___________

*
S.R.O. 47(I)/2012, Islamabad, the 20 th January, 2012.– In exercise of the powers conferred by
sub-section (4) of section 3 of the Federal Excise Act, 2005, and in supersession of Federal Excise Duty
rates prescribed against S. No. 3 of Table-II of the First Schedule to the Federal Excise Act, 2005, the
Federal Government is pleased to levy Federal Excise Duty on the services mentioned in column (1) of
the Table below, at the rates specified in column (3) thereof, with immediate effect.
TABLE
Description of services Heading/sub- Rate of duty
heading No.
(1) (2) (3)
Facilities for travel 98.03
(a) Services provided or rendered in 9803.1000 Sixteen per cent of the charges plus
respect of travel by air of the passenger sixty rupees per ticket
within the territorial jurisdiction of
Pakistan; and
(b) services provided or rendered in respect 9803.1100
of travel by air of the passengers
embarking on international journey to
or from Pakistan,–
(i) passengers embarking to or from SAARC Three thousand three hundred and
region, United Arab Emirates (Middle forty rupees for economy and
East), Saudi Arabia, Africa, Afghanistan; economy plus classes and four
and thousand three hundred and forty
rupees for club, business and first
classes.
(ii) passengers embarking to or from Four thousand three hundred and
Europe, Far East, China, United Sate of forty rupees for economy and
America, Canada, Australia, South economy plus classes and five
America, others. thousand eight hundred and forty
rupees for club, business and first
classes.
* RESCINDEd by Notification No. SRO 603(I)/2012 dated June 1, 2012 w.e.f. June 2, 2012.
_______________

S.R.O. 77(I)/2013, dated 7.2.2013.– In exercise of the powers conferred by sub-section (4) of
section 3 of the Federal Excise Act, 2005 the Federal Government is pleased to specify the rate of Federal
Excise Duty on the item in column (2) of the Table below, falling under the PCT Heading numbers
 138

specified in column (3) of the said Table, at the rate specified in column (4) thereof subject to the
conditions given as below, namely:-
 139

TABLE
Sr. Item Description Heading Number in the First Rate of
No. Schedule to the Customs Act, 1969 Duty
(IV of 1969)
(1) (2) (3) (4)
1. White crystalline sugar 1701.9910 and 1701.9920 0.5%
(a) rate of duty in column (4) of the Table shall only be applicable on the quantity of local
supply of sugar equivalent to the quantity actually exported by the sugar manufacturer, in
accordance with the export quota allotted in pursuance of the decision of the ECC in its
meeting held on January 10, 2013 1[and decision of the ECC in its meeting held on 7 th
September, 2013 whereby a maximum of five hundred thousand metric tons of sugar was
allowed to be exported].

(b) the sugar manufacturer shall present the proof of such export to the concerned
Commissioner Inland Revenue along with the return for the tax period following the tax period
in which such export took place. The sugar manufacturer shall also file the calculation in the
form given in the Annexure to this notification along with the return;

(c) the quantity exported does not exceed the quota allotted in pursuance of the aforesaid
decision of the ECC; and

(d) the benefit of this notification shall not be admissible in respect to exports by land
routes to Afghanistan and Central Asian Republics.

Explanation.- If a sugar manufacturer actually exports any quantity of sugar, only then the sugar
manufacturer is allowed to charge the FED as given in column (4) of the Table on equivalent quantity of
local sale of sugar on supplies made in the 2[three tax periods] succeeding the tax period in which the
export took place.
CALCULATION OF FED OUTPUT LIABILITY
A. Total supplies during the tax period (Qty.) __________ MT
(a) Local Supplies __________ MT
(b) Exports in the preceding Tax Period __________ MT
B. Local supplies eligible for concessional rate __________ MT
C. Value of eligible local supplies Rs. __________
(i) FED on eligible supplies @ 0.5% Rs. __________
(ii) FED on non-eligible local supplies @ 8% Rs. __________
D. Total FED for the tax period Rs. __________
1 Words etc. inserted by Notification No. SRO 1072(I)/2013 dated December 27, 2013.
2 Substituted for “tax period” by Notification No. SRO 1072(I)/2013 dated December 27, 2013.
_______________

S.R.O. 507(I)/2013, dated Islamabad 12 th June 2013.- In exercise of the powers conferred by
clause (b) of subsection (3) of section 3 of the Federal Excise Act, 2005, the Federal Board of Revenue is
pleased to levy fixed amount of federal excise duty at the rate of one rupee per kilogram of locally
produced oil purchased by a manufacturer of vegetable ghee and cooking oil, in lieu of the federal excise
duty payable @ 16% on vegetable ghee and cooking oil produced or manufactured from locally
 140

produced oil, which shall be paid by the producer or manufacturer of vegetable ghee and cooking oil
alongwith his monthly return for the period in which the locally produced oil is purchased:
Provided that the federal excise duty payable at the rate specified above, on the stocks of locally
produced oil purchased before the 12th June, 2013 and lying in the premises of vegetable ghee and
cooking oil producer or manufacturer on the said date, shall be paid alongwith the return filed for June,
2013.
_______________

S.R.O. 508(I)/2013, dated Islamabad 12 th June 2013.- In exercise of the powers conferred by
clause (b) of sub-section (3) of section 3 of the Federal Excise Act, 2005, the Federal Board of Revenue is
pleased to levy fixed amount of federal excise duty of forty paisa per kilogram on oilseeds, at the import
stage, in lieu of federal excise duty payable at production or manufacturing stage of vegetable ghee or
cooking oil.
_______________
*
S.R.O. 655(I)/2007, Islamabad, the 29th June, 2007.– In exercise of the powers conferred by
section 3A, and sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is
pleased to direct that subject to the conditions, restrictions and exceptions stated hereinafter, special
excise duty at the rate of one per cent of the value shall be levied, collected and paid on goods specified
in the First Schedule to the Customs Act, 1969 (IV of 1969) except the goods mentioned in the table
below.
TABLE
S. No DESCRIPTION H.S. CODE
(1) (2) (3)
1. All goods classifiable in chapter 07. Chapter 07
2. Seeds, fruit and spores of a kind used for 1209.1000, 1209.2100, 1209.2200, 1209.2300,
sowing 1209.2400, 1209.2500, 1209.2900, 1209.3000,
1209.9110, 1209.9120, 1209.9130, 1209.9190
and 1209.9900
3. Rape or colza seeds, sunflower seeds, 1205.1000, 1206.0000, 1207.2000, 1207.4000,
cotton seeds, sesamum seeds, mustard 1207.5000 and 1207.9910
seeds and safflower seeds.
4. Edible oils and fats 15.07, 15.08, 15.09, 15.10, 15.11, 15.12, 15.13,
15.14, 15.15, 15.16, 15.17 and 15.18
5. Petroleum oils and oils obtained from 2709.0000
bituminous minerals, crude
1
[6. Meat of bovine animals, sheep, goat and 02.01, 02.02, 02.04 and 02.07
poultry
7. Cereals, rice and products of milling Chapter 10 and 11
industry
8. Poultry feed and cattle feed including Respective Headings
their ingredients
9. POL products 27.10]
10. Natural gas and LPG 2711.1100, 2711.1910 and 2711.2100
11. Electrical energy 2716.0000
1 Entries Nos. 6, 7, 8, 9 and entries relating thereto substituted by Notification No. SRO 830(I)/2007, dated 18.08.2007.
* RESCIND by Notification No. SRO 489(I)/2011 dated June 3, 2011 w.e.f. July 1, 2011.
Entries No. 6, 7, 8 and 9 Substitution.–Before substituted by Notification No. SRO 830(I)/2007, entries read as follows:
“6. Motor spirit 2710.1110
7. Aviation spirit 2710.1120
8. High speed diesel oil 2710.1931
 141

9. Furnace-oil 2710.1941”

12. Phosphoric acid 2809.2010

13. Pharmaceutical products Chapter 30
14. Fertilizers Chapter 31
15. Currency notes, bank notes, shares, stocks 4907.0000
and bonds.
16. Silver, in unworked condition. 7106.1000, 7106.9110, 7106.9190, 7106.9210
and 7106.9290
17. Gold, in unworked condition. 7108.1100, 7108.1210 and 7108.1290
18. Monetary gold. 7108.2010&7108.2090
1
19. Tin plate [7210.1110 and 7210.1210]
20. Computer hardware including laptops, 8471.0000
notebooks, PCs mainframe and other
peripheral units and parts thereof
21. Soyabean seeds 1201.0000

22. Petroleum bitumen 2713.2000

23. Special Classification provisions Chapter 99

24. Temporary importation under Federal Respective headings

Government’s Notification No. S.R.O.
1065(I)/2005 dated 20th October, 2005,
imports under DTRE Scheme and imports
under manufacturing bonds scheme.
2
[25. Goods specified in the Federal Respective headings]
Government’s Notifications No. S.R.O.
678(I)/2004, dated 7th August, 2004, SRO
509(I)/2007 dated 29th June, 2007, SRO
863(I)/2007 dated 24th 3[June], 2007, SRO
549(I)/2008 dated 11th June, 2008,
exemption shall be admissible in respect
of Sr. No. 4 4[ ], SRO 551(I)/2008 dated
11th June, 2008 at S.No. 12.
26. Supplies made by cottage industry as Respective headings
defined in the Sales Tax Act, 1990.
27. Goods produced or manufactured and Respective headings
exported by a manufacturer
28. Imported goods subject to customs duty Respective headings
at the rate of zero percent under the
Customs Act, 1969 (IV of 1969), or any
notification issued thereunder.
1 Substituted for “7210.1100 and 7210.1200” by Notification No. SRO 1111(I)/2008, dated 25.10.2008.
2 Entry No. 25 and entries relating thereto substituted by Notification No. SRO 715(I)/2008, dated 3.07.2008.
3 Substituted for “July” by Notification No. SRO 1111(I)/2008, dated 25.10.2008.
4 Words etc. “except clause (xvi) thereof” omitted by Notification No. SRO 202(I)/2009, dated 27.02.2009 shall be deemed to
have been so made on the 11th June, 2008.
Entry No. 25 Substitution.– Before substituted by Notification No. SRO 715(I)/2008 entry 25 read as follows:
“25. Goods specified in the Federal Government’s Notifications No. S.R.O. 509(I)/2007, dated 9th June, Respective
2007, SRO 462(I)/2007 dated 9th June, 2007, SRO 646(I)/2007 dated 27th June, 2007, SRO headings”
 142

548(I)/2006 dated 5th June, 2006, SRO 604(I)/2006 dated 7th June, 2006, SRO 1[664](I)/2006 dated
27th June, 2006, SRO 759(I)/2006 dated 24th July, 2006, SRO 758(I)/2006 dated 24th July, 2006, SRO
1204(I)/2006 dated 30th November, 2006, SRO 670()/2006 dated 29th June, 2006 2[, S.R.O.
678(I)/2004, dated the 7th August, 2004] and SRO 1270(I)/2006 dated 27th December, 2006.
1 Substituted for “644” by Notification No. SRO 830(I)/2007, dated 18.08.2007.
2 Words etc. inserted by Notification No. SRO 286(I)/2008, dated 12.03.2008.
1
[29. Table salt including iodized salt 2501.0010
30. Glass bangles 7020.0090
31. Newspapers, journals, books and 4901.9100, 4901.9990, 4902.1010, 4902.1090,
periodicals 4902.9010, 4902.9090 and 4903.0000
32. Bricks and building blocks of cement 6810.1100&6901.0000
33. Agricultural tractors Respective Headings
34. Supplies made against international Respective Headings
tenders
35. Live animals Respective Headings
36. Eggs including eggs for hatching 0407.0010 & 0407.0090
37. Breads, vermicillies, nans, chapattis, sheer Respective Headings]
mal, bun, rusk
2
[38. Tractors’ parts supplied by registered vendors to manufactures of 8701.9019]
agricultural tractors subject to the conditions and procure
specified in Notification No. S.R.O. 1229(I)/2007, dated the 18 th
December, 2007.
3 4
[39. [Steel ingots and billets and mild steel of products which are Respective Headings]
chargeable to sales tax Chapter 72, under rule 58H and 58Ha of the
Sales Tax Special Procedures Rules, 2007.]
5
[40. Pesticides 3808.9160, 3808.9199]
6
[41. Coal mined, produced or extracted by any method from Thar 27.01]
Coalfield
2. Conditions and restrictions:
(i) The value for the purposes of levy of special excise duty shall be,--
(a) in case of goods imported, the value determined in accordance with section 25 of the
Customs Act, 1969 (IV of 1969) for the purpose of assessing customs duty; and
(b) in case of goods produced or manufactured, the value determined under sub-section (1)
or as the case may be sub-section (4) of section 12 of the Federal Excise Act, 2005,
excluding the amount of excise duty levied under section 3 of the said Act.
(ii) Special excise duty and such duty shall be paid,–
(a) in case of goods imported, in the same manner as customs duty is paid by an importer
under the Customs Act, 1969 (IV of 1969) ; and
(b) in case of goods produced or manufactured, in the same manner as Federal excise duty
is paid by a producer or manufacturer under the Federal Excise Act, 2005.
(iii) The amount of special excise duty shall not be part of the value for the purpose of
assessment of customs duty, Federal excise duty, sales tax or advance income tax, in case of
imported or locally manufactured goods.
(iv) Special excise duty paid at import or local supply stage on industrial inputs shall be
adjustable against the special excise duty chargeable on the goods manufactured therefrom at
local supply stage. No other adjustment of special excise duty shall be allowed against any
amount of Federal excise duty or sales tax or any other tax and vice versa; 7[ ]
1 Entries No. 29 to 37 and entries relating thereto inserted by Notification No. SRO 830(I)/2007, dated 18.08.2007.
2 Entry No. 38 and entries relating thereto inserted by Notification No. SRO 1233(I)/2007, dated 17.12.2007.
3 Entry No. 39 and entries relating thereto inserted.
 143

4 Substituted by Notification No. SRO 1111(I)/2008, dated 25.10.2008.

5 Entry No. 40 and entries relating thereto inserted by Notification No. SRO 281(I)/2010, dated 27.04.2010.
6 Entry No. 41 and entries relating thereto inserted by Notification No. SRO 1085(I)/2010, dated 29.11.2010.
7 Word “and” omitted by Notification No. SRO 281(I)/2010, dated 27.04.2010.
(v) Where goods on which special excise duty has been paid are exported, the exporter shall
be entitled to drawback of such duty in such manner and to such extent as may be directed by
the Board 1[, and]
2
[(vi) 1% SED already charged to buyers on local supply of pesticides, specified under S.No.40 of
the Table on or after 29th June, 2007, shall be refunded only, if the incidence of tax is not passed
to the consumer in terms of section 11 of the Federal Excise Act, 2005.]
3. This Notification shall take effect on and from the 1 st day of July, 2007.
1 Substituted for full stop by Notification No. SRO 281(I)/2010, dated 27.04.2010.
2 Clause (vi) inserted by Notification No. SRO 281(I)/2010, dated 27.04.2010.
_______________

S.R.O. 543(I)/2006, Islamabad, the 5 th June, 2006.– In exercise of the powers conferred by
clause (a) of section 27 of the Sales Tax Act, 1990, and sub-section (5) of section 4 of the Federal Excise
Act, 2005, the Central Board of Revenue is pleased to direct that all the registered manufacturers making
supply of taxable goods as mentioned in the column (2) of the Table below shall furnish by the 20 th of
each month the details of goods manufactured or produced, goods supplied and goods cleared in the
format as given in Annex to this notification and quantitative data shall be provided using the units
mentioned in column (3) of the aforesaid Table, namely:–
TABLE
S. No. Description of Goods Unit of Quantity
(1) (2) (3)
1 Sugar M. Tons
2 Tea blended M. Tons
3 Cigarettes Million Nos.
4 Aerated waters “000” Litres
5 Cement M. Tons
6 Motor cars Nos.
7 Buses Nos.
8 Jeeps Nos.
9 Trucks Nos.
10 Light Commercial Vehicles/ Light Transport Vehicle Nos.
11 Motors cycles Nos.
12 Air conditioners Nos.
13 Refrigerators Nos.
14 Deep freezers Nos.
15 Washing machines Nos.
16 Television sets Nos.
17 Paper & Paperboard M. Tons
18 Chemicals M. Tons
19 Gases & acids “000” Litres
20 Flakes & detergent M.Tons
 144

21 Paints & varnishes M.Tons

22 Natural gas MillionCu.Meters
23 Liquefied Petroleum Gas M.Tons
24 Fertilizer M.Tons
25 Wires & Cables “000” Meters
27 Toilet soap M. Tons
28 Ceramic tiles “000” sq. mtrs
29 Caustic soda M.Tons
ANNEX
SPECIAL RETURN
For Production, Supplies and Purchases
(under section 27(a) of the Sales Tax Act, 1990, and
Section 4(5) of the Federal Excise Act, 2005.
Sales Tax / FE Registration No. ______________________________________________________
Name: _____________________________________________________________________________
Address: ___________________________________________________________________________
For the Tax Period _________________________, 20______
Description Quantity in Quantity Taxable Items Excisable Goods Quantity in
Opening Produced Quantity Value of Qty. Quantity Value of Closing
Balance Supplied Supplied (Rs.) Cleared Qty. Cleared Balance

Total value (Rs.)

Signature:____________________
Name________________________
Designation__________________
NTN No._____________________
Date_________________________
_______________

st
S.R.O. 993(I)/2006, Islamabad, the 21 September, 2006.– In exercise of the powers conferred
by section 61 of the Sales Tax Act, 1990, and sub-section (2) of section 5 of the Federal Excise Act, 2005,
the Central Board of Revenue is pleased to allow composite repayment-cum-drawback of sales tax and
federal excise duty to the registered person on the export from Pakistan of vegetable ghee 1[, cooking oil
and margarine] at the rates mentioned against each in column (3) of the Table below subject to the
conditions specified in paragraph 2.
2
[TABLE
S.No Description Repayment-cum-drawback rate
(1) (2) (3)
1. Vegetable (i) Rs. 6.62 per kg for exports made during 1 st January, 2007 to 30th June,
ghee 2007.
(ii) Rs. 6.96 per kg for exports made during 1 st July, 2007 to 10th September,
2007.
1 Substituted for “and cooking oil” by Notification No. SRO 1201(I)/2007 dated December 11, 2007.
2 Table substituted by Notification No. SRO 1201(I)/2007 dated December 11, 2007.
Table.–Substitution.–Before substituted by SRO 1201(I)/2007 the table reads as follow:
“TABLE
S. No. Description Repayment-cum-drawback rate
(1) (2) (3)
1. Vegetable ghee Rs. 1[6.96] per kg
2. Cooking oil Rs. 6.69 per kg”
 145

1 Substituted for “5.99” by Notification No. SRO 1010(I)/2007 dated October 3, 2007 and shall be deemed to have been so
made on the 11th September, 2007. Earlier the figure “5.99” was substituted for “6.17” by Notification No. SRO 26(I)/2007
dated January 10, 2007 and shall be deemed to have been so substituted on the 1st day of January, 2006.
(iii) 90% of federal excise duty paid at import stage on the same quantity of
edible oil as exported, including the duty paid under the Notification No.
S.R.O. 24(I)/2006, dated the 7th January, 2006, for exports made on or after
11th September, 2007:
Provided that 90% of federal excise duty shall be worked out by taking
average of all imports as made by the exporter during the last month prior
to the month of export and in case edible oil was not directly imported by
the exporter then on the basis of goods declaration of the importer from
whom purchases of edible oil were made.
1
[(iv)100% of federal excise duty, including the duty paid under the Notification
No. S.R.O.24(I)/2006, dated the 7th January, 2006, paid at import stage on
the same quantity of edible oil as exported to Afghanistan, by the units
located in the violence affected areas specified in Sales Tax General Order
01/2010, dated the 20th January, 2010:
Provided that proof of 100% imported edible oil shall be provided by
the exporting units and 100% of federal excise duty shall be worked out by
taking average of all imports as made by the exporter during the last
month prior to the month of export and in case edible oil was not directly
imported by the exporter then on the basis of goods declaration of the
importer from whom purchases of edible oil were made.]
2. Cooking oil Rs. 6.69 per kg
3. Margarine Rs. 5.97 per kg.]
2. The repayment-cum-drawback under this notification shall be admissible subject to the
fulfilment of the following conditions, namely:–
(i) only branded products shall be entitled to the aforesaid repayment-cum-drawback;
(ii) the exporter shell file claim to the concerned Collector of Sales Tax and Federal Excise for
the repayment-cum-drawback on monthly basis, as and if due;
(iii) commercial exporters shall be entitled to the repayment-cum-drawback provided they
make direct procurements from the registered ghee or oil manufacturing units;
(iv) the import goods declarations (duplicate-in-original) and original purchase invoices shall be
endorsed by the concerned officer of the Collectorate of Sales Tax and Federal Excise confirming
their utilization for the purpose of repayment-cum-drawback and drawback under this notification;
(v) the exporters shall be required to furnish a monthly inventory-cum-production statement to
the concerned Collector in the format as set out in ‘Annex’ duly supported by goods declarations
and purchase invoices. The statement shall be verified on quarterly basis through desk audit; and
(vi) the applicable export policy conditions and procedures shall be adhered to as usual.
3. The Collectorates shall process the claim in the same manner as prescribed under Chapter V
of the Sales Tax Rules, 2006, as far as applicable, and make payment of admissible repayment- cum-
drawback within the time prescribed under the said Rules.
2
[3A. The refund of sales tax on electricity, gas and packing material shall be paid on the basis of
actual quantities consumed in the manufacture of exported goods. The claimants shall provide the sales
tax invoices and goods declarations, as the case may be, along with statements showing consumption of
these inputs in the exported goods. The Board may issue directives to further regulate the payment of
refund on such inputs 3[:] ]
4
[Provided that the refund under this paragraph shall be admissible against exports made on or
after the 1st January, 2006.]
4. This notification shall be deemed have taken effect on the 1 st day of January, 2006:
1. Clause (iv) inserted by Notification No. SRO 342(I)/2010 dated May 20, 2010.
2. Paragraph 3A inserted Notification No. SRO 26(I)/2007 dated January 10, 2007.
 146

3. Substituted for full stop by Notification No. SRO 443(I)/2007 dated May 31, 2007.
4. Proviso inserted by Notification No. SRO 443(I)/2007 dated May 31, 2007.
Provided that in case of the consignments exported before the issuance of this notification, the
Collector of Sales Tax and Federal Excise may condone any act required to be done under this notification
other than the declaration of brand, which could not be done for the absence of this notification or
require such act to be done subsequently so as to facilitate the entertainment of genuine claims under
this notification.
Annex
[See paragraph 2(v)]
MONTHLY INVENTORY-CUM-PRODUCTION STATEMENT
Name of registered person___________________________________________________
Registration No. ___________________________________________________________
Month____________________________________________________________________
Major Input Materials (including edible oils)
S. Description Opening Procurement Total Quantity of raw Closing stock of
No. of raw balance during the available material consumed raw material
material month in production

Production
S. Description Opening Quantity Quantity Closing
No. stock of produced Supplied stock
finished during the Local Export
goods month

Signature
Name
Designation
NIC No.
Date
___________

*
S.R.O. 650(I)/2005, Islamabad, the 1st July, 2005.– In exercise of the powers conferred by sub-
section (3) of section 6 of the Federal Excise Act, 2005, the Central Board of Revenue is pleased to
disallow adjustment of duty 1[to the extent of seventy five percent,] paid on goods mentioned in column
(2) of the table below if used in the manufacture and production of goods specified in column (3) of the
said table, namely:–
TABLE
S.No. Raw material/semi finished goods Goods
(1) (2) (3)
1. (i) Concentrates in all forms including syrup form falling under Aerated waters falling under
heading 2106.9010 Headings 2201.1010 and
(ii) Flavours and concentrates falling under heading 3302.1010 2202.1020
2. This notification shall take effect from the 1st day of July, 2005.
1 Words etc. inserted by Notification No. SRO 649(I)/2007, dated June 27, 2007.
* RESCINDED by Notification No. SRO 399(I)/2010 dated 05.06.2010 w.e.f. July 1, 2010.
___________

*
S.R.O. 390(I)/2006, Islamabad, the 27th April, 2006.– In exercise of the powers conferred by
sub-section (3) of section 6 of the Federal Excise Act, 2005, read with sub-rule (2) of rule 32 of the
Federal Excise Rules, 2005, the Federal Government is pleased to disallow the adjustment or rebate of
excise duty accrued in connection with export of cement falling under PCT heading 25.23 out of Pakistan
via land, air or sea routes.
 147

* RESCINDED by Notification No. SRO 1085(I)/2006 dated October 31, 2006.

___________

S.R.O. 822(I)/2011, Islamabad, the 6th September, 2011.– In exercise of the powers conferred by
sub-section (3) of section 6 of the Federal Excise Act, 2005, the Federal Board of Revenue is pleased to
direct that the adjustment of duty paid on goods mentioned in column (2) of the table below, if used in
the manufacture and production of goods mentioned in column (3) thereof, shall be restricted to the
extent of duty payable on goods specified in column (3) of the said table, namely:–
TABLE
S.No Raw material/ semi-finished goods Goods.
(1) (2) (3)
1. (i) Concentrates in all forms including syrup form Aerated waters falling under
falling under heading 2106.9010 headings 2201.1010 and
2202.1020
(ii) Flavours and concentrates falling under heading 2202.1020
3302.1010
_______________

*
S.R.O. 648(I)/2005, Islamabad, the 1 st July, 2005.– In exercise of the powers conferred by
section 7 of the Federal Excise Act, 2005, and in supersession of its Notification No. S.R.O 503(I)/2004
dated 12th June, 2004, the Federal Government is pleased to specify the services specified in the Table
below on which Federal excise duty shall be levied and collected as if it were a tax payable under section
3 of the Sales Tax Act, 1990, and all the provisions of said Act and the rules made and notifications,
orders and instructions issued thereunder shall, so far as may be with necessary modifications, apply,
namely:–
TABLE
Heading/sub- Description of services.
heading number
(1) (2)
9802.3000 Advertisement on closed circuit T.V.
9802.5000 Advertisements on cable T.V. network.
98.03 Facilities for inland travel.
9803.1000 Travel by air.
9803.2010 Travel by train in air-conditioned Sleeper Class.
9803.2020 Travel by train in air-conditioned Parlour Class (Sitter).
9803.2030 Travel by train in First Class Sleeper.
9804.1000 Carriage of goods by air.
98.05 Services provided or rendered by persons authrorised to transact business on behalf
of others.
9805.1000 Shipping agents.
98.12 Services provided or rendered by persons engaged in telecommunication work in
respect of telephone, telegraph, telex, telefax and alike.
9812.1000 Telephone.
9812.2000 Telegraph.
9812.3000 Telex.
9812.4000 Telefax.
9812.9000 Other.
Explanation.– (I) The sub-head “Other” includes the following services,
namely:–
 148

(a) Telephone cards including payphone cards and pre-paid calling cards.
(b) Wireless Local Loop (WLL).
* SUPERSEDED by Notification No. SRO 550(I)/2006 dated June 5, 2006, available under year 2006.
(c) Very small aperture terminal (VSAT) services (voice based).
(d) Voice cast (voice broadcasting service).
(e) Installation of telephone connection.
(f) Shifting of telephone connection.
(g) Restoration of telephone connection.
(h) Conversion of telephone connection into subscriber turn dialing/ non-subscriber
telephone dialing.
(i) Provision of extension of telephone connection.
(j) Changing of telephone connection.
(k) Cost of telephone set.
Explanation.– (II) The persons or companies other than Pakistan
Telecommunication Corporation Limited (PTCL), engaged in telecommunication
services shall pay duty at the specified rate on charges excluding the charges billed by
PTCL.
2. This notification shall take effect from the 1st day of July, 2005.
___________

*
S.R.O. 550(I)/2006, Islamabad, the 5 th June, 2006.– In exercise of the powers conferred by
section 7 of the Federal Excise Act, 2005, and in supersession of its Notification No. S.R.O 648(I)/2005
dated 1st July, 2005, the Federal Government is pleased to specify the services mentioned in the Table
below on which excise duty shall be levied and collected as if it were a tax payable under section 3 of the
Sales Tax Act, 1990, and all the provisions of the said Act and the rules made and notifications, orders
and instructions issued thereunder shall, so far as may be with necessary modifications, apply, namely:–
1
[TABLE
S. No. Heading number Description of services.
(1) (2) (3)
1. 98.02 Advertisements.
2. 9803.1000 Services provided or rendered in respect of travel by air of passengers
within territorial limits of Pakistan.
3. 9804.1000 Carriage of goods by air.
4. 9805.1000 Shipping agents.
* FBR withdraws FED to the Sales Tax on services receivable by the provinces to avoid double taxation.– The services
rendered by registered persons who were previously subject to Federal Excise Duty (being collected in Sales Tax mode) have
now been subject to sales tax by the provinces through their legislation with effect from 1st July, 2011. The Federal Board of
Revenue through a notification has withdrawn Federal Excise Duty on such services (Table-II of First Schedule to the Federal
Excise Act, 2005) with effect from the same date i.e. 1st July, 2011 in order to avoid double taxation. However, the registered
persons providing such services will continue to charge Tax/ Duty and file Sales Tax Returns as before with certain
amendments being worked out in Federal Board of Revenue and the registered persons shall face no difficulty for switching
from Federal Excise Duty to the Sales Tax on Services receivable by the Provinces. [ PRESS RELEASE dated July 1, 2011 issued
by FBR available on website]
1 Table substituted by Notification No. SRO 478(I)/2009, dated June 13, 2009 w.e.f. July 1, 2009.
Table substitution.– Before substituted by Notification No. SRO 478(I)/2009 table reads as follows:
“TABLE
Heading number Description of services
98.02 Advertisement
1 2
[9803.1000] [Services provided or rendered in respect of travel by air of passenger within the territorial limits of
Pakistan] 9804.1000 Carriage of goods by air
 149

9805.1000 Shipping agents

98.12 Telecommunication services”
1 Substituted for “98.03” by Notification No. SRO 779(I)/2006, dated August 1, 2006.
2 Substituted for “Facilities for travel” by Notification No. SRO 779(I)/2006, dated August 1, 2006.
5. 98.12 Telecommunication services.
6. 98.13 Services provided or rendered by banking companies and non-banking
financial companies.
7. 98.13 Services provided by insurance companies.
8. 9819.1000 Services provided or rendered by stockbrokers.
9. 9819.9090 Services provided or rendered by port and terminal operators.]
1
[An airline shall file return for carriage of goods by air by the day specified in sub-rule (9) of rule
41A of the Federal Excise Rules, 2005.]
1 Paragraph inserted by Notification No. SRO 544(I)/2008, dated June 11, 2008.
___________

S.R.O. 543(I)/2008, Islamabad, the 11 th June, 2008.– In exercise of the powers conferred by sub-
section (2) of section 7 of the Federal Excise Act, 2005, the Federal Government is pleased to declare
that provisions of sub-section (2A), (3), (5AA), (6A), (8), (9A), (19), (21), of section 2, section 50A and
section 52A of Sales Tax Act, 1990 shall be applicable, mutatis mutandis, in regard to like matters in
respect of the duty leviable under the Federal Excise Act, 2005.
_________

th
S.R.O. 545(I)/2006, Islamabad, the 5 June, 2006.– In exercise of the powers conferred by the
proviso to sub-section (4) of section 12 of the Federal Excise Act, 2005, the Central Board of Revenue is
pleased to direct that the duty shall be charged and collected on imported cigarettes (PCT heading
02.04) on the basis of retail price legibly printed on each packet of cigarettes.
___________

*
S.R.O. 671(I)/2006, Islamabad, the 29th June, 2006.– In exercise of the powers conferred by
sub-section (5) of section 12 of the Federal Excise Act, 2005, the Central Board of Revenue is pleased to
fix the minimum price of lubricating oil in packs (PCT headings 2710.1951 and 2710.1952) at US$ 2 per
litre for the purpose of assessment of excise duty at import stage.
* RESCINDED by Notification No. SRO 603(I)/2012 dated June 1, 2012 w.e.f. June 2, 2012.
___________

st
S.R.O. 603(I)/2012, Islamabad, the 1 June, 2012.– In exercise of the powers conferred by sub-
section (4) of section 3, sub-section (5) of section 12 and sub-section (2) of section 16 of the Federal
Excise Act, 2005 read with rule 33 of the Federal Excise Rules, 2005, the Federal Government is pleased
to rescind the following Notifications, namely:–
(i) No. S.R.O. 807(I)/2005, dated the 12th August, 2005;
(ii) No. S.R.O. 671(I)/2006, dated the 29th June, 2006;
(iii) No. S.R.O. 777(I)/2006, dated the 1st August, 2006;
(iv) No. S.R.O. 949(I)/2006, dated the 6th September, 2006;
(v) No. S.R.O. 1229(I)/2007, dated the 18th December, 2007; and
(vi) No. S.R.O. SRO 47(I)/2012, dated the 20th January, 2012.
2. This Notification shall take effect on and from the 2nd day of June, 2012.
___________

th
S.R.O. 562(I)/2006, Islamabad, the 5 June, 2006.– In exercise of the powers conferred by sub-
section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to exempt
the following excisable services from the whole of excise duty chargeable thereon, namely:–
(a) travel by train in Air-conditioned sleeper class (PCT heading 9803.2010);
(b) travel by train in Air-conditioned parlour class (PCT heading 9803.2020); and
 150

(c) travel by train in First Class (sleeper) (PCT heading 9803.2030).

2. This notification shall stand rescinded on 1st July, 2006.
___________

S.R.O. 778(I)/2006, Islamabad, the 1 st August, 2006.– In exercise of the powers conferred by
sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to
exempt the excise duty chargeable on the services of travel by air on international journey from Pakistan
provided or rendered to the persons mentioned in the Table below:
TABLE
S. No. Category of persons
1. Hajj passengers
2. Diplomats
3. Supernumerary crew
1
[ ]
1 Serial No. 4 and entry relating thereto omitted by Notification No. SRO 469(I)/2007 dated June 9, 2007 w.e.f. July 1, 2007.
Serial No. 4 omission.–Before omitted by Notification No. SRO 469(I)/2007 dated June 9, 2007 it reads as follows:
“4. Passengers having arrived in Pakistan from abroad on tickets issued outside Pakistan and are
embarking only for return journey from Pakistan”
___________

* th
S.R.O. 949(I)/2006, Islamabad, the 6 September, 2006.– In exercise of the powers conferred
by sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to
exempt the import and supply of solvent oil (PCT heading 2710.1150) for manufacture of shoe adhesives
1
[and solvent based contact adhesives] subject to the following conditions, namely:–
(i) the supply is made to sales tax registered manufacturers of shoe adhesives having a valid
storage license from the Department of Explosives, Ministry of Industries and having active
industrial electricity meters in their names;
(ii) if imported, the import is made directly by sales tax registered manufacturers of shoe
adhesives; having a valid storage license from the Department of Explosives, Ministry of
Industries and having active industrial electricity meters in their names;
(iii) the Collector of Sales Tax having jurisdiction shall verify that the unit claiming exemption
has adequate in-house manufacturing facilities; and
(iv) consumption of solvent oil according to the standard formulation to be worked out in
consultation with the industry, shall be verified by the Collector of Sales Tax having jurisdiction,
on a quarterly basis by conducting special audit of the units availing exemption
* RESCINDED by Notification No. SRO 603(I)/2012 dated June 1, 2012 w.e.f. June 2, 2012.
1 Words inserted by Notification No. SRO 949(I)/2009 dated January 27, 2009.
___________

S.R.O. 467(I)/2007, Islamabad, the 9th June, 2007.– In exercise of the powers conferred by sub-
section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to direct that
the services provided by cable TV operators for the period 1st July, 2006 to 30th June, 2007, shall be
exempt from the whole of the excise duty chargeable thereon.
___________

th
S.R.O. 512(I)/2007, Islamabad, the 13 June, 2007.– In exercise of the powers conferred by sub-
section (4) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to exempt
whole of the amount of default surcharge payable by a person against whom an amount of excise duty is
outstanding on account of any audit observation, audit report, show cause notice or any adjudication
order or who has failed to pay any amount of excise duty due to any reason other than tax fraud, subject
to the condition that the outstanding principal amount of excise duty is paid by the 30 th June, 2007 1[,]
2
[or has already been paid at the time of issuance of this Notification.]
1 Substituted for full stop by Notification No. SRO 998(I)/2007, dated September 29, 2007.
2 Words inserted by Notification No. SRO 998(I)/2007, dated September 29, 2007.
 151

___________

th
S.R.O. 648(I)/2007, Islamabad, the 27 June, 2007.– In exercise of the powers conferred by
section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to exempt whole of the
amount of penalties payable by a person against whom an amount of excise duty is outstanding on
account of any audit observation, audit report, show cause notice or any adjudication order or who has
failed to pay any amount of excise duty due to any reason other than tax fraud, subject to the condition
that the outstanding principal amount of excise duty is paid by the 30th June, 2007.
___________

S.R.O. 677(I)/2007, Islamabad, the 6 th July, 2007.– In exercise of the powers conferred by sub-
section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to exempt
whole of excise duty leviable on Viscose staple fibre and this exemption shall be available till the 1[30th
day of June, 2009], and this notification shall stand rescinded from the aforesaid date.
1 Substituted for “31st day of Mar, 2009” by Notification No. SRO 359(I)/2009, dated April 23, 2009. Earlier it was amended by
Notification No. SRO 1308(I)/2008, dated 31.12.2008, SRO 1044(I)/2008, dated 7.10.2008 w.e.f. Ist October 2008, SRO
696(I)/2008 dated 30.6.2008, SRO 328(I)/2008 dated 31.3.2008, SRO 186(I)/2008 dated 29.2.2008, SRO 99(I)/2008 dated
31.1.2008, SRO 19(I)/2008 dated 5.1.2008 and SRO 1063(I)/2007 dated 29.10.2007.
___________

*
S.R.O. 1229(I)/2007, Islamabad, the 18th December 2007.– In exercise of the powers conferred
by sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to
exempt the special excise duty levied under Notification No. SRO 655(I)/2007, dated the 29 th June, 2007,
on the tractor parts supplied by registered vendors to the manufacturers of agricultural tractors falling
under heading No. 8701.9019 of the First Schedule to the Customs Act, 1969 (IV of 1969) subject to the
following conditions, namely:–
1
[ ]
(iii) the refund claim 2[of special excise duty] shall be processed in the same manner as
provided under the Refund Claim of Recognized Agriculture Tractor Manufacturers Rules, 2005,
and
(iv) the relevant provisions of Chapter V of the Sales Tax Rules, 2006 shall apply. However,
one time waiver from rule 28(1) is granted in respect of refund claims arising out of supplies
made before the issuance of this notification subject to the condition that the same are filed
before the 31st January, 2008.
2. This notification shall apply to all supplies made on or after 1 st July, 2007.
* RESCINDED by Notification No. SRO 603(I)/2012 dated June 1, 2012 w.e.f. June 2, 2012. Earlier it was SUPERSEDED by
Notification No. SRO 675(I)/2011 dated July 1, 2011.
1 Clauses (i) & (ii) omitted by Notification No. SRO 205(I)/2008 dated February 4, 2008.
2 Words inserted by Notification No. SRO 205(I)/2008 dated February 4, 2008.
Clauses (i) & (ii) Omission.– Before omitted by Notification No. SRO 205(I)/2008, clauses read as follows:
“(i) the exemption under this notification of special excise duty paid by, a recognized manufacturer of
agricultural tractor registered under the Federal Excise Act, 2005, to the registered vendors of tractor parts, shall
be allowed only by way of refund.
(ii) the registered manufacturer of agricultural tractor shall claim the refund of special excise duty paid to
vendors on the parts actually used in the supply of tractors in a tax period. The manufacturer shall file the
refund application to the Collector of Federal Excise having jurisdiction alongwith following documents,
namely:–
(a) Invoices showing payment of special
(b) sales tax-cum-federal excise returns filed by the manufacturers of tractors and his registered
vendors;
(c) a revolving bank guarantee valid for at least ninety days issued by scheduled bank to the
satisfaction of Collector of Federal Excise having jurisdiction of an amount not less than the average monthly
refund claim during last twelve months; and
(d) undertaking to the effect that refund if found not due shall be adjusted against the bank
guarantee;”
___________
 152

S.R.O. 185(I)/2008, Islamabad, the 26 th February, 2008.– In exercise of the powers conferred by
sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to
exempt whole of Federal Excise Duty on franchise services falling under PCT heading 9823.0000 payable
by the vendors of the auto parts industry having Technical Agreements with foreign based auto parts
manufacturing companies.
___________

S.R.O. 511(I)/2008, Islamabad, the 5th June 2008.– In exercise of the powers conferred by
section 34A of the Sales Tax Act, 1990 and sub-section (4) of section 16 of the Federal Excise Act, 2005,
the Federal Government is pleased to exempt whole of the amount of default surcharge and penalties
payable by a person against whom an amount of sales tax or federal excise duty is outstanding on
account of any audit observation, audit report, show cause notice or any adjudication order, or who has
failed to pay any amount of sales tax or federal excise duty or claimed inadmissible input tax adjustment
or refund or drawback due to any reason, subject to the condition that the outstanding principal amount
of sales tax or federal excise duty is paid by 1[31st July], 2008. It is clarified that exemption of default
surcharge and penalties under this notification shall also apply in cases where principal amount of sales
tax or federal excise duty has been deposited by the registered persons prior to issuance of this
notification. However, the subject amnesty scheme does not apply to cases of fraudulent refunds or
drawback and other tax frauds.
1 Substituted for “30th June” by Notification No. SRO 700(I)/2008 dated June 30, 2008.
___________

th
S.R.O. 474(I)/2009, Islamabad, the 13 June, 2009.– In exercise of the powers conferred by sub-
section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to exempt
whole of excise duty leviable on the items mentioned in column (2) of the Table below and falling in the
PCT headings specified in column (3), thereof, namely:–
S. No. Description Heading or sub-
heading Nos.
(1) (2) (3)
1. Motor cars and other motor vehicles principally designed for the 87.03
transport of persons including station wagons and racing cars of
cylinder capacity exceeding 850cc.
1
[ ]
3. Services provided or rendered by banking companies and non- Respective headings
banking financial companies in respect of Hajj and Umrah, cheque
book, insurance, Musharika and Modaraba financing and utility bill
collection.
2
[4. White cement Respective Headings.]
2. This notification shall take effect on and from the 14 th June, 2009.
1 S. No. 2 and the entries relating thereto omitted by Notification No. SRO 599(I)/2012 dated June 1, 2012 w.e.f. June 2, 2012.
2 Sr. No. 4 and the entries relating thereto inserted by Notification No. SRO 633(I)/2011 dated June 18, 2011 w.e.f. July 1, 2011.
Sr. No. 2.–Omission.– Before omitted by SRO 599(I)/2012, serial No. 2 read as follows:
“2. Viscose staple fibre. Respective headings.”
_______________

S.R.O. 479(I)/2009, Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 34A of the Sales Tax Act, 1990, and sub-section (4) of section 16 of Federal Excise Act, 2005, the
Federal Government is pleased to exempt penalty for late filing of return payable under serial No. I of
the Table given in section 33 of the Sales Tax Act, 1990, and sub-section (1) of section 19 of Federal
Excise Act, 2005, in respect of a registered person, subject to the following conditions, namely:–
(a) The registered person filed the returns by the 28 th February, 2009 for the tax periods
from July, 2008, to January, 2009; and
(b) payment of the tax due was made by the registered person by due date for each month.
_______________
 153

S.R.O. 802(I)/2009, Islamabad, the 14th September, 2009.– In exercise of the powers conferred
by sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to:–
(a) exempt the federal excise duty on advertisement in newspapers with immediate effect;
and
(b) direct that the federal excise duty collected from 1 st July, 2009 till the date of issuance of
this Notification shall be deposited in the Government Treasury under the relevant provisions
of the Act.
_______________

S.R.O. 81(I)/2010, Islamabad, the 13th February, 2010.– In exercise of the powers conferred by
sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to.–
(a) exempt the federal excise duty on advertisement in periodicals with immediate effect;
and
(b) direct that the federal excise duty collected from the 1 st July, 2009 till the date of
issuance of this notification shall be deposited in the Government Treasury under the said Act.
___________

*
S.R.O. 160(I)/2010, Islamabad, the 10 th March, 2010.– In exercise of the powers conferred by
section 34A of the Sales Tax Act, 1990 and sub-section (4) of section 16 of the Federal Excise Act, 2005,
the Federal Government is pleased to exempt whole of the amount of default surcharge and penalties
payable by a registered person located in districts of Hangu, Bannu, Tank, Kohat, Chitral, Charsadda,
Peshawar, Dera Ismael Khan, Batagram, Lakki Marwat, Sawabi 1[, Nowshera] and Mardan against whom
an amount of sales tax or federal excise duty is outstanding on account of any audit observation, audit
report, show cause notice or any adjudication order or who has failed to pay any amount of sales tax or
federal excise duty or claimed inadmissible input tax adjustment or refund or drawback due to any
reason, subject to the condition that the outstanding principal amount of sales tax or federal excise duty
is paid by or before the 30th June, 2010:–
Provided that exemption of default surcharge and penalties under this notification shall not be
applicable to cement, sugar, beverages and cigarette sectors.
1 Words etc. inserted by Notification No. SRO 264(I)/2010 dated April 22, 2010.
* RESCINDED by Notification No. SRO 500(I)/2013 dated June 12, 2013.
___________

*S.R.O. 161(I)/2010, Islamabad, the 10th March, 2010.– In exercise of the powers conferred by
sub-section (1) of section 12A of the Central Excises Act, 1944 (I of 1944), the Federal Government is
pleased to exempt whole of the amount of additional duties and penalties payable by a registered
person located in Agencies of Bajaur, Mohmand, Khyber, Orakzai, Kurrum, North Waziristan and South
Waziristan against whom an amount of central excise duty is outstanding on account of any audit
observation, audit report, show cause notice or any adjudication order or who has failed to pay any
amount of central excise duty or claimed inadmissible refund or drawback due to any reason, subject to
the condition that the outstanding principal amount of central excise duty is paid by or before the 30th
June, 2010.
Provided that exemption of additional duties and penalties under this notification shall not be
applicable to cement, sugar, beverages and cigarette sectors.
* RESCINDED by Notification No. SRO 500(I)/2013 dated June 12, 2013.
___________

th
*S.R.O. 162(I)/2010, Islamabad, the 10 March, 2010.– In exercise of the powers conferred by
sub-section (1) of section 12A of the Central Excises Act, 1944 (I of 1944), the Federal Government is
pleased to exempt central excise duty leviable on goods produced 1[ ] in the areas specified in column
(2) of the Table below, on and from the 1st January, 2010 2[ ], as is in excess of the rates mentioned in
column (3) of the said Table, namely:–
TABLE
S. No. Areas Applicable rate of
central excise duty
(1) (2) (3)
 154

1. Bajaur Agency, Mohmand Agency, Khyber Agency, Orakzai Agency, Zero per cent
Kurrum Agency, North Waziristan Agency and South Waziristan
Agency.
2. The exemption under this notification shall not be admissible to cement, sugar, beverages and
cigarette sectors.
* RESCINDED by Notification No. SRO 500(I)/2013 dated June 12, 2013.
1 Words “or services rendered” omitted by Notification No. SRO 370(I)/2010 dated June 2, 2010.
2 Words “to the 30th June, 2010” omitted by Notification No. SRO 370(I)/2010 dated June 2, 2010.
___________

*S.R.O. 163(I)/2010, Islamabad, the 10th March, 2010.– In exercise of the powers conferred by
sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government is pleased to
exempt federal excise duty leviable on goods produced 1[ ] in the areas specified in column (2) of the
Table below, on and from the 1st January, 2010 2[ ], as is in excess of the rates mentioned in column (3)
of the said Table, namely:–
TABLE
S. No. Areas Applicable rate of federal
excise duty
(1) (2) (3)
3
1. Districts of Hangu, Bannu, Tank, Kohat [, Peshawar] and Zero per cent
Chitral
2. Districts of Charsadda, 4[Nowshera], Dera Ismael Khan, fifty per cent of the leviable
Batagram, Lakki Marwat, Sawabi and Mardan rate
2. The exemption under this notification shall not be admissible to cement, sugar, beverages and
cigarette sectors.
* RESCINDED by Notification No. SRO 500(I)/2013 dated June 12, 2013.
1 Words “or services rendered” omitted by Notification No. SRO 265(I)/2010 dated April 22, 2010. This amendment shall be
made and shall be deemed always to have been so made.
2 Words “to the 30th June, 2010” omitted by Notification No. SRO 265(I)/2010 dated April 22, 2010. This amendment shall be
made and shall be deemed always to have been so made.
3 Words etc. inserted by Notification No. SRO 265(I)/2010 dated April 22, 2010. This amendment shall be made and shall be
deemed always to have been so made.
4 Substituted for “Peshawar” by Notification No. SRO 265(I)/2010 dated April 22, 2010. This amendment shall be made and
shall be deemed always to have been so made.
___________

S.R.O. 648(I)/2011, Islamabad, the 25th June, 2011.– In exercise of the powers conferred by
section 34A of the Sales Tax Act, 1990 and sub-section (4) of section 16 of the Federal Excise Act, 2005, the
Federal Government is pleased to exempt whole of the amount of default surcharge and penalties payable
by a person against whom an amount of sales tax or federal excise duty is outstanding on account of any
audit observation, audit report, show cause notice or any adjudication order, or who has failed to pay any
amount of sales tax or federal excise duty or claimed inadmissible input tax credit, adjustment, refund,
drawback or rebate due to any reason, subject to the condition that the outstanding principal amount of
sales tax or federal excise duty is paid by 30th June.
2. Benefit of this notification shall not be available in cases of fraudulent refunds or drawback
and other tax frauds.
___________

S.R.O. 675(I)/2011, Islamabad, the 1st July, 2011.– In exercise of the powers conferred by sub-
section (2) of section 16 of the Federal Excise Act, 2005 and in supersession of its Notification S.R.O.
1229(I)/2007, dated the 18th December, 2007, the Federal Government is pleased to exempt the special
excise duty levied under Notification S.R.O. 655(I)/2007, dated the 29 th June, 2007, on the tractor parts
supplies by registered vendors to the manufacturers of agricultural tractors falling under PCT heading
8701 of the First Schedule to the Customs Act, 1969 (IV of 1969), provided that exemption under this
 155

Notification shall be available only by way of refund of special excise duty paid by the manufacturers of
agricultural tractors to their registered-vendors and for the purpose of payment of such refund under
this Notification, the procedure for refund shall, mutatis mutandis, be the same as applicable to the
payment of refund of sales tax at a particular or relevant point of time:
___________

nd
S.R.O. 548(I)/2012, Islamabad, the 22 May, 2012.– In exercise of the powers conferred by
section 34A of the Sales Tax Act, 1990 and sub-section (4) of section 16 of the Federal Excise Act, 2005,
the Federal Government is pleased to exempt whole of the amount of default surcharge and penalty for
non-payment payable by a person against whom an amount of sales tax or federal excise duty is
outstanding on account of any audit observation, audit report, show cause notice or any adjudication
order, or who has failed to pay any amount of sales tax or federal excise duty or claimed inadmissible
input tax credit, adjustment, refund, drawback or rebate due to any reason, subject to the condition that
the outstanding principal amount of sales tax or federal excise duty is paid by the 1[30th June, 2012];
Provided that where refund becomes due to any person in consequence of a decision or
judgment of court after the issuance of this Notification, the tax deposited by that person under this
Notification shall be refunded to him.
2. Benefit of this Notification shall not be available in cases of fraudulent refunds or drawback
and other tax refund.
1 Substituted for “25th June, 2012” by Notification No. SRO 770(I)/2012 dated June 25, 2012. Earlier it was substituted for
“31st May, 2012” by Notification No. SRO 700(I)/2012 dated June 7, 2012.
_______________

S.R.O. 217(I)/2010, dated March 31, 2010.– In exercise of the powers conferred by sub-sections
(3) and (4) of section 18 of the Federal Excise Act, 2005, the Federal Board of Revenue is pleased to
specify the modified invoices to be maintained by the cigarette manufacturers along with other
requirements of documents and record prescribed under any other provision of the said Act, namely:–
(i) Tax invoice-unmanufactured tobacco.– At the time of clearance of unmanufactured
tobacco for the manufacture of cigarettes, an invoice as specified in Annexure-I to this
notification shall be prepared by every manufacturer of cigarettes.
(ii) Register of receipts, issues and balances.– A register as specified in Annexure-2 to this
notification shall be maintained by the cigarette manufacturer at the place where
unmanufactured tobacco is stored. Separate entry shall be made in the register on each
clearance of un-manufactured tobacco. The invoice number and date shall be mentioned in
column relating to “Ref No.”.
(iii) Stock transport advice-cigarettes.– At the time of clearance of cigarettes from the
manufacturing premises to warehouse, whether located within or outside manufacturing
premises, an invoice in duplicate as specified in Annexure-3 to this notification shall be
prepared. A separate entry for each brand shall be made in the said invoice and original copy of
the invoice shall accompany the vehicle upto the destination mentioned in the invoice.
(iv) Sales-cum-Transport Invoice for supplies from warehouse to distributor or
wholesaler.– At the time of supply or clearance of cigarettes from warehouse or factory
premises to a distributor or, as the case may be, a wholesaler, a sales-cum-transport invoice in
duplicate as specified in Annexure-4 to this notification shall be prepared. A separate entry for
each brand shall be made in the said invoice and original copy of the invoice shall accompany
the vehicle upto the destination mentioned in the invoice.
(v) Register for receipts, clearances and balances of cigarettes.–A register in the form
specified at Annex-5 to this notification shall be maintained by the manufacturer of cigarettes
at the place where cigarettes are stored. Invoice or Advice No. of Stock Transport Advice and
sales-cum-transport invoice for supplies from warehouse to distributor or wholesaler shall be
mentioned in column pertaining to “Invoice/Advice Ref” of the register. Separate entry shall be
made for each variety or brand of cigarettes.
(vi) Register for production, transfers and balances on the production floor.–A register as
specified in Annex-6 to this notification shall be maintained at the production floor and separate
entry shall be made for each variety or brand of cigarettes in the register.
 156

(vii) Register for receipts, issues and balances of major raw materials.–A register as
specified in Annexure-7 to this notification shall be maintained for major raw materials such as
cigarette paper and filter rods for cigarettes etc., but excluding un-manufactured tobacco, used
in the manufacture of cigarettes.
1
[(viii) Register to be maintained by cigarette manufacturers having in-house facility of filter
rod manufacturing.– A register as specified in Annexure-8 to this notification shall be
maintained by cigarette manufacturers having in-house facility of filter rod manufacturing and
claiming conditional exemption provided vide S. No. 16 of Table-1 of Third Schedule to the
Federal Excise Act, 2005.]
1. Clause (viii) inserted by Notification No. SRO 811(I)/2010 dated August 16, 2010 w.e.f. July 1, 2010.

ANNEXURE-I
[see clause (i)]
Tax invoice-un-manufactured tobacco clearance
Name of the seller/manufacturer Invoice/Advice No:
Sales Tax Registration No: Date:
Name & Address of Consignee/Buyer

Description of Excisable Type of No. of Quantity Assessable Excise Duty

Good (Variety) packaging packages value
Rate/M Amount Rate/M Amount

AUTHORIZED SIGNATORY
EXCISE DUTY-AMOUNT IN WORDS

ANNEXURE-2
[see clause (ii)] 
Register of Receipts, Issues & Balances of un-manufactured Tobacco
Name & Address of the Manufacturer
Description of Excisable Goods (Variety)

Opening Receipts Issues Closing stock

Stock
Quantity

Quantity
Quantity

Quantity

Remarks

Date No. of Ref. Receive Ref. Issue No. of

& package No. d from No. s No. packag
Time s es

ANNEXURE-3
[see clause (iii)] 
Stock Transport Advice – Cigarettes
Name of the manufacturer: Advice No:
Sales Tax Registration No: Date:
Address of warehouse:
 157

Mode of Transport _____________ Vehicle/Conveyance No. ____________ Time of Transport ________

Description of Type of No. of Quantity Serial No. of Assessable Value
Cigarettes Packaging packages packages
(brand/variants)
From To Rate/M Amount

AUTHORIZED SIGNATORY
EXCISE DUTY-AMOUNT IN WORDS

ANNEXURE-4
[see clause (iv)] 
Sales-cum-Transport invoice
Name of the seller/manufacturer Invoice No:
Sales Tax Registration No: Date:
Name & Address of Consignee/Buyer
Mode of Transport __________ Vehicle/Conveyance No. _____________ Time of Transport __________
Description
Serial
of Type of No. of
Quantit No. of Assessabl Value inclusive
Cigarettes Packagin packag Excise duty Sales Tax
y package e Value of Excise Duty
(brand/ g es
s
variants
Fro T Rate/M Rate/ Amou Rate/ Amou Rate/ Amou
m o Amount M nt M nt M nt

Total

AUTHORIZED SIGNATORY
EXCISE DUTY-AMOUNT IN WORDS

ANNEXURE-5
[see clause (v)]
REGISTER OF RECEIPTS, CLEARANCES AND BALANCES OF CIGARETTES
Name and Address of the Manufacturer/Seller
Description of Cigarettes (Brand/Variants)

Opening Stock Receipts

Date & Time No. of packages Quantity Received from No. of packages Quantity Serial
Nos.
(1) (2) (3) (4) (5) (6) (7)

Clearances/Issues Closing Stock Remarks

 158

Invoice/Advice Ref. No. of Quantity Serial Nos. No. of packages Quantity (If any)
packages
(8) (9) (10) (11) (12) (13) (14)

ANNEXURE-6
[see clause (vi)] 
Register for production, transfers & balances on the production
floor
Name and Address of the Manufacturer/Seller
Description of Cigarettes (Brand/Variants)
Opening Stock Manufacturer
Date & Time No. of packages Quantity No. of packages Quantity
(1) (2) (3) (5)

Transfer to Finished Goods Store Rooms Closing Stock Remarks

No. of packages Quantity Serial Nos. No. of packages Quantity (If Any)
(6) (7) (8) (9) (10) (11)

Annexure-7
[see clause (vii)] 
Register of Receipts, Issues & Balances of Major Raw materials (Cigarettes Paper & Filter Rods)

Name & Address of the Manufacturer

Description of Material
Packing Unit/Unit of Measurement
Opening Stock Receipts Issues Closing Stock
Date Quantity Ref. Received Quantity Ref. Issues Quantity Quantity Remarks
& No. from No. to
Time

1
[ANNEXURE-8
[see clause (viii)]
Register for cigarette manufacturers having in-house facility of filter rod manufacturing and availing
conditional exemption vide S. No. 16 of Table-1 of Third Schedule to the Federal Excise Act, 2005
Name & Address of the Manufacturer
Description of Material
Packing Unit/Unit of Measurement
Name & Address of the Manufacturer
Description of Material
Packing Unit/Unit of Measurement
 159

Size Opening Raw No. of Total filter No. of filter No. of FED Closing
of balance material filter rods rods rods cleared filter on balanc
filter as on 1st imported/ manufactu available for for rods filter e as on
rod day of purchased red during consumptio consumption sold in rods last day
month during the the month n in cigarette market sold of the
month manufacturing month

1 Annexure-8 inserted by Notification No. SRO 811(I)/2010 dated August 16, 2010 w.e.f. July 1, 2010.
___________

*
S.R.O. 807(I)/2005, Islamabad, the 12th August, 2005.– In exercise of the powers conferred by rule
33 of the Federal Excise Rules, 2005, and in supersession of its Notification No. S.R.O. 1028(I)/2003, dated the
6th November, 2003, the Central Board of Revenue is pleased to grant rebate of federal excise duty, paid on
base oil used in the manufacture of the goods specified in column (2) of the table below and are exported out
of Pakistan, at the rates specified in column (3) thereof, provided that for obtaining payment of rebate, the
applicant shall produce proof of payment of excise duty in respect of each consignment to the rebate
sanctioning authority 1[:]
2
[Provided that no rebate of Federal Excise Duty, shall be allowed on export of all petroleum
products (whether imported or locally produced), by air or via land route, to Afghanistan and through
Afghanistan to Central Asian Republic unless there is a Government to Government contract done
through oil marketing companies, duly registered with Oil and Gas Regulatory Authority.]
TABLE
S. No. Goods produced or manufactured Rate of federal excise rebate
(1) (2) (3)
1. Motor lubricating oil 20W-50 for petrol11.60% of the f.o.b. value or Rs.5.65 per litre,
automobiles. whichever is less.
2. Motor lubricating oil 20W-50 for diesel7.50% of the f.o.b. value or Rs.5.51 per litre,
automobiles. whichever is less.
3. Marine lubricating oil, all grades or types. 9.36% of the f.o.b. value or Rs.5.37 per litre,
whichever is less.
* RESCINDED by Notification No. SRO 603(I)/2012 dated June 1, 2012 w.e.f. June 2, 2012.
1 Substituted for full stop by Notification No. SRO 137(I)/2012 dated February 14, 2012.
2 Proviso inserted by Notification No. SRO 137(I)/2012 dated February 14, 2012.
___________

th
S.R.O. 808(I)/2005, Islamabad, the 12 August, 2005.- In exercise of the powers conferred by rule 33
of the Federal Excise Rules, 2005, and in supersession of its Notification No. S.R.O. 259(I)/2004, dated the 7 th
May, 2004, the Central Board of Revenue is pleased to grant rebate of federal excise duty paid on cement
used in the manufacture of the goods specified in column (2) of the table below and exported out of Pakistan,
at the rate specified in column (3) thereof, provided that for obtaining payment of rebate, the applicant shall
produce proof of payment of federal excise duty in respect of each consignment to the rebate sanctioning
authority.
TABLE
S. No Goods produced or manufactured Rate of federal excise rebate
(1) (2) (3)
1. Fibre cement (FC) pipes made of cement and white Rs.5.56 per M2n/5mm or 3.82% of the f.o.b.
chrysotile asbestos. value, whichever is less.
2. Fibre cement (FC) flat sheets made of cement and Rs.3.95 per M2n/5mm or 4.24% of the f.o.b.
white chrysotile asbestos. value, whichever is less.
___________

th
S.R.O. 139(I)/2006, Islamabad, the 17 February, 2006.– In exercise of the powers conferred by
rule 33 of the Federal Excise Rules, 2005, the Central Board of Revenue is pleased to grant rebate of federal
excise duty, paid on base oil used in the manufacture of the goods specified in column (1) of the table
below and exported out of Pakistan, at the rates specified against such goods in column (2) thereof.
 160

2. For obtaining payment of rebate, the applicant shall produce proof of payment of federal
excise duty in respect of each consignment to the rebate sanctioning authority.
3. The rebate of federal excise duty authorized by this notification shall be admissible in respect
of goods exported on or after the 17th February 2006.
TABLE
Goods produced or manufactured Rate of federal excise rebate
(1) (2)
Soft Drinks (all pack sizes) Rs. 1.72 per litre.
___________
 161

Customs Act
S.R.O. 03(I)/2009, Islamabad, the 2nd January, 2009.- In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that in its
Notification No. S.R.O. 567(I)/2006, dated the 5 th June, 2006, the following further amendment shall be
made and shall be deemed to have been so made on the 11 th June, 2008, namely:–
In the aforesaid Notification, in Table-I, against S. No. 49 in column (1), in column (3), the existing
entry shall be numbered as (i) and thereafter the following new entry shall be added, namely:–
“(ii) Power generation plants imported by KESC on temporary basis with a view to
subsequent exportation.”.
_______________

S.R.O. 25(I)/2009, Islamabad, the 12 th January, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales
Tax Act, 1990, and sections 148 and 53 read with the Second Schedule to the Income Tax Ordinance,
2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendment
shall be made in its Notification No. S.R.O. 577(I)/2005, dated the 6 th June, 2005, namely:–
In the aforesaid Notification, in paragraph 2, for the figure “2”, the figure “1” shall be
substituted.
_______________

S.R.O. 41(I)/2009, Islamabad, the 19 th January, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, and in supersession of its Notification No. S.R.O. 316(I)/2007, dated the 12 th April,
2007, the Federal Government is pleased to direct that capital equipment (plant, machinery, equipment
and accessories), if not manufactured locally, shall be exempt from the whole of customs-duty and sales
tax if imported for the development of projects in the Special Industrial and Economic Zones and for
establishing projects in these Zones, subject to the following conditions, namely:–
(i) locations and perimeters shall be notified by the Board of Investment of Investment
Division;
(ii) the benefit of this notification shall be admissible only for capital equipment (plant,
machinery, equipment and accessories), and not for raw materials;
(iii) the goods imported under condition (ii) for the zones will not be removed without the
permission of the FBR within five years of their importation;
(iv) 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, lay out plan and drawings; and
(v) Board of Investment (BOI) shall certify in the prescribed manner and format as per
Annex-A that the imported goods are bona fide project requirement. In case the clearance of
the imported goods is through Pakistan Customs Computerized System (PaCCS), the authorized
officer of the BOI shall furnish all relevant information online to PaCCS against a specific user ID
and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already
computerized Collectorates or Customs stations where the PaCCS is not operational, the
Project Director or any other person authorized by the Collector in this behalf shall enter the
requisite information in the Customs Computerized System on daily basis, whereas entry of the
data obtained from the customs stations which have not yet been computerized shall be made
on weekly basis.
Explanation.- In this notification,–
(a) the expression “machinery” means,-
 162

(i) machinery and equipment operated by power of any description, such as is used
in industrial process;
(ii) apparatus and appliances, including metering and testing apparatus and
appliances specifically adopted for use in conjunction with machinery and equipment
specified in sub-clause (i);
(iii) mechanical and electrical controls and transmission gear adapted for use of
goods specified in sub-clause (i); and
(iv) component parts of machinery and equipment, as specified in sub-clauses (i), (ii)
and (iii), identifiable for use in or with machinery; and
(b) the expression “not manufactured locally” means the goods which are not listed in the
locally manufactured list, notified through a Customs General Order issued by the Federal
Board of Revenue from time to time or, as the case may be, certified as such by the
Engineering Development Board.
Annex-A
[See clause (v), First paragraph]
Header Information
NTN or FTN of Importer Approval No.
(1) (2)
Details of input goods (to be filled by the authorized Goods imported (Collectorate of import)
officer of the Regulatory Authority)
HS Descrip- Specifi- Customs- Sales WHT Quantity UOM Quantity Collect- CRN Date
Code tion cations duty rate Tax imported Orate or of
(appli- rate Mach CRN
cable) (applic- No. or
able) Mach
No.
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
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 (PaCCS), the
information shall be furnished on line against a specific user I.D. and password obtained under section
155D of the Customs Act, 1969.
_______________

S.R.O. 42(I)/2009, Islamabad, the 19 th January, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that capital equipment (plant,
machinery, equipment and accessories) shall be exempt from the whole of customs-duty and sales tax if
imported for the development of Pakistan-China Investment Zones and for establishing projects in these
Zones, subject to the following conditions, namely:–
(a) locations and perimeters shall be notified by the Board of Investment of Investment
Division;
(b) only such projects or joint ventures would be entitled to this exemption as are certified
by the Board of Investment to have at least forty per cent foreign equity from Chinese
Companies;
 163

(c) capital equipment (plant, machinery, equipment and accessories) imported for the zones
will not be removed from the zones without the permission of the FBR within five years of their
importation;
(d) 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, lay out plan and drawings; and
(e) Board of Investment shall certify in the prescribed manner and format as per Annex-A
that the imported goods are bona fide project requirement. In case the clearance of the
imported goods is through Pakistan Customs Computerized System (PaCCS) the authorized
officer of the BOI shall furnish all relevant information online to PaCCS against a specific user ID
and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already
computerized Collectorates or Customs stations where the PaCCS is not operational, the
Project Director or any other person authorized by the Collector in this behalf shall enter the
requisite information in the Customs Computerized System on daily basis, whereas entry of the
data obtained from the customs stations which have not yet been computerized shall be made
on weekly basis.
2. Explanation.– For the purpose of this notification, the expression “Pakistan-China Investment
Zones” means Special Industrial Zones located in the territory of Pakistan notified by the Board of
Investment, Government of Pakistan having not less than forty per cent (40%) investment by approved
Chinese investors.
Annex-A
[See clause (e), first paragraph]
Header Information
NTN or FTN of Importer Approval No.
(1) (2)
Details of input goods (to be filled by the authorized Goods imported (Collectorate of import)
officer of the Regulatory Authority)
HS Descrip- Specifi- Customs- Sales WHT Quantity UOM Quantity Collect- CRN Date
Code tion cations duty rate Tax imported Orate or of
(appli- rate Mach CRN
cable) (applic- No. or
able) Mach
No.
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Certificate.- Before certifying the authorized officer of the Regulatory Authority shall ensure that
the goods are genuine and bona fide requirement of the project.
Signature: ________________________
Designation: ________________________
NOTE.– In case of clearance through Pakistan Customs Computerized System (PaCCS), the
information shall be furnished on line against a specific user I.D. and password obtained under section
155D of the Customs Act, 1969.
_______________

S.R.O. 107(I)/2009, Islamabad, the 3rd February, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 565(I)/2006, dated the 5th
June, 2006, namely:–
In the aforesaid Notification, in the Table, in column (1),–
(1) against serial numbers 2, 3, 4 and 5, in column (3), under heading “Raw materials”, the
words “Deep draw” wherever occurring shall be omitted;
 164

(2) against S. No. 36, in entries (1) and (2) in column (3), under heading “Raw materials” for
the word, letter, hyphen and figure “Solvent C-9” the words “Hydrocarbon Solvent” shall be
substituted;
(3) against S. No. 59, in column (2), for the words “Stearic Acid” the words, oblique, letters
and brackets “Stearic Acid/Distilled Fatty Acid (DFA)” shall be substituted;
(4) against S. No. 74, in column (3), in entry (7),–
(a) the word “Water” shall be omitted; and
(b) for the word “Flake” the word “Flaker” shall be substituted;
(5) against S. No. 131, against entries (3) and (9) in column (3), in column (4), for the figures
“4805.5000” and “7409.1100” the figures “4805.4000” and “7410.1100” shall respectively be
substituted;
(6) after S. No. 144, and entries relating thereto in columns (2), (3), (4), (5) and (6), the following new S. No. and
entries relating thereto shall be added, namely:-
“145. Stainless steel Raw materials 2808.0010 0% Nil”
sheets having width (1) Nitric Acid 7219.1300
from 500 mm to
750 mm and of (2) HRC stainless 7219.1400
thickness from 0.5 steel of thickness
mm to 4.75 mm more than 0.5 mm

_______________

S.R.O. 108(I)/2009, Islamabad, the 3rd February, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No.S.R.O. 567(I)/2006, dated the 5th
June, 2006, namely:-
In the aforesaid Notification,–
(a) in Table-I, after S.No.29 in column (1) and the entries relating thereto in columns (2), (3), (4) and (5), the
following new S. No. and the entries relating thereto shall be inserted, namely:–
“30A. 7326.9090 Cryogenic Tanks 5% Nil”;
(b) in Table-II, against S. No.73 in column (1), in column (4), for the figure “7”, the figure “5”
shall be substituted.
_______________

S.R.O. 483(I)/2009, Islamabad, the 13th June , 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 567(1)/2006, dated the 5th
June, 2006, namely:-
In the aforesaid Notification,-
(a) In paragraph 2;-
(i) in clause (g), the word “and”, at the end, shall be omitted;
(ii) in clause (h), after the semi colon, at the end, the word “and” shall be added and
thereafter the following new clause shall be added, namely:-
“(i) Ministry of Livestock and Dairy Development, in case of goods specified against
serial number 4A of Table I.”;
(b) in Table I,-
(i) serial number 2C in column (1), and the entries relating thereto in columns (2), (3), (4)
and (5) shall be omitted;
 165

(ii) against serial number 4 in column (1), for the figure “2833.2990” occurring in column (2)
against the words “zinc sulphate” in column (3), the figure “2833.2940” shall be substituted;
(iii)against serial number 4 in column (1), in column (2) after the figure “2922.5000”, the
following new entries in columns (2), (3), (4) and (5) shall be added namely:-
“2923.9010 Betain 0% Nil”
(iv) after serial number 4 in column (1) and entries relating thereto in columns (2), (3), (4) and (5), the following
new serial number and the entries relating thereto shall be added, namely:-
2309.9090 Calf Milk
0% This facility shall
Replacer be available for
(CMR) dairy sector,
2309.9020 Cattle Feed0% subject to
Pre certification by
mix the Ministry of
Livestock and
Dairy
Development”;
(v) serial number 30A in column (1) and the entries relating thereto in columns (2), (3), (4)
and (5) shall be omitted; and
(vi)serial number 47 in column (1) and the entries relating thereto in columns (2), (3), (4)
and (5) shall be omitted;
(3) for Table III, the following shall be substituted, namely:-
“TABLE III
PHARAMACEUTICAL RAW MATERIALS, CHEMICALS, FINISHED PRODUCTS IF APPROVED BY THE MINISTRY
OF HEALTH. PHARMACEUTICAL RAW MATERIALS, CHEMICALS AND PACKING MATERIALS SHALL ONLY BE
ALLOWED CONCESSIONS IF IMPORTED FOR IN-HOUSE USE IN THE MANUFACTURE OF SPECIFIED
PHARAMACEUTICAL SUBSTANCES.
A. ACTIVE PHARMACEUTICAL INGREDIENTS
S No HS Code Description Rate of duty Condition
(1) (2) (3) (4) (5)
1 2916.3990 Flurbiprofen 5%
2 2918.2210 Aspirin 5%
3 2933.3920 Pyrazinamide 5% (i) It shall be valid
upto 30th June,
2010.
(ii) The quantity to
be imported shall
be certified by the
Ministry of Health
in each case.
4 2933.3990 Amlodipine 5%
5 2933.3990 Deferiprone 5%
6 2933.3990 Lamivudine 5%
7 2933.3990 Loratadine 5%
8 2933.3990 Pantoprazole Sodium (Injec Grade) 5%
9 2933.3990 Risedronate Sodium 5%
10 2933.4990 Moxifloxacin 5%
11 2933.9990 Atorvastatin 5%
12 2935.0060 Sulphanilamide 5%
13 2935.0090 Gliclazide 5%
 166

14 2935.0090 Piperazine Anhydrous (Pharmaceutical grade). 5%

15 2936.9000 Alfacalcidole 5%
16 2941.1000 (i) Amoxicillin sodium sterile BP 5%
(ii) Ampicillin sodium sterile USP/BP
(Pharmaceutical grade)
(iii) Bacampicillin HCL
(iv) Carbenicillin and its salts
(v) Carfecillin
(vi) Cloxacillin and its salts excluding
[sodium] (compacted/ powder form for oral
use)
(vii) Flucloxacillin sodium
(viii) Pencillin V.Potassium
(ix) Benzyl pencillin sodium/potassium
(x) Cloxacillin sodium sterile USP/BP
(xi) Pencillin benzathin
(xii) Procaine pencillin G.fortified,
sodium/potassium
(xiii) Sultamicillia tosylate
(xiv) Sultamicillin (Pharmaceutical grade)
(xv) Ticarcilin disodium
(xvi)Piperacillin Sodium
17 2941.5000 Clarithromycin Powder 5%
18 2941.9090 Azithromycin 5%
19 2941.9090 Fusidic Acid 5%
20 2941.9090 Gentamycin 5%
21 2941.9090 Rifampicin 5%
B. EXCEPIENTS/CHEMICALS
1 1104.2900 Worked grains of other cereals. 5%
(Pharmaceutical grade)
2 1108.1200 Sterillisable maize (corn) starch 5%
(Pharmaceutical grade)
3 1301.2000 Gum Benjamin BP (Pharmaceutical 5%
grade)
4 1301.9090 (i) Balsam, Tolu BP/USP. 5%
(ii) Gum acacia powder BP
(iii) Gumbenzoin, Styrax, Tragacanth,
Xanthan(Pharmaceutical grades)
5 1302.1900 Other vegetable saps and extracts 5%
(Pharmaceutical grade)
6 1302.3900 Other mucilages and thickeners 5%
(Pharmaceutical grade)
7 1404.9090 (i) Rhubarb leaves or roots. 5%
(ii) Valerine roots (Pharmaceutical
grade)
 167

8 1513.2900 Refined palm kernel or babassu oil 5%

(Pharmaceutical grade)
9 1515.1900 Other fixed vegetable fats and oils 5%
(Pharmaceutical grade)
10 1515.3000 Castor oil (Pharmaceutical grade) 5%
11 1516.2010 Vegetable fats and oils 5%
1516.2020 (Pharmaceutical grade)
12 1701.9910 Sugar (pharmaceutical grade) if 5%
imported by manufacturer of
pharmaceutical Products in the
quantity to be determined by
Ministry of Health
13 1702.3000 (i) Dextrate (Pharmaceutical grade). 5%
(ii) Dextrose (injectable grade and
pharmaceutical grade)
14 1901.9010 Malt extract (Pharmaceutical grade) 5%
15 2207.1000 Ethyl alcohal 5%
16 2501.0090 (i) Sodium chloride (NaCI). 5%
(ii) Sodium chloride (injectable grade)
(Pharmaceutical grades)
17 2707.9990 Oils and other products of the 5%
distillation of high temperature coal
tar (Pharmaceutical grade)
18 2710.1995 Liquid paraffin (Pharmaceutical 5%
grade).
19 2710.9900 Plastibase (Pharmaceutical grade) 5%
20 2712.9090 Microcrystalline petroleum wax, 5%
ozokerite, lignite wax, peat wax and
other mineral waxes (Pharmaceutical
grade)
21 2801.2000 Iodine (Pharmaceutical grade) 5%
22 2810.0020 Boric acid (Pharmaceutical grade) 5%
23 2812.9000 Phosphorous pentachloride 5%
(Pharmaceutical grade)
24 2815.1100 (i) Sodium hydroxide 5%
(ii) Sodium hydroxide solid or
aqueous solution (Pharmaceutical
grade)
25 2833.1100 Disodium sulphate (Pharmaceutical 5%
grade)
26 2833.1900 Sodium sulphate anhydrous 5%
(Pharmaceutical grade)
27 2836.3000 Sodium hydrogen carbonate (sodium 5%
bicarbonate) (Pharmaceutical grade)
28 2905.4400 Dglucitol (Sorbitol) (Pharmaceutical 5%
grade).
29 2914.1100 Acetone (Pharmaceutical grade) 5%
30 2915.1100 Formic acid (Pharmaceutical grade) 5%
 168

31 2915.2100 Acetic acid 5%

32 2915.2400 Acetic anhydride (Pharmaceutical 5%
grade)
33 2915.3100 Ethyl acetate (Pharmaceutical grade) 5%
34 2915.7010 Stearic acid (Pharmaceutical grade) 5%
35 2917.3410 (i) Butyl phthalate 5%
(ii) Dibutylphthalate (Pharmaceutical
grade)
36 2918.2900 Hydroxy benzoic acid (Pharmaceutical 5%
grade)
37 2918.2900 Propyl Paraben Sodium Salt 5%
38 2933.5990 {[(4-ethyl-2,3-dioxo-1- 5%
piperazinyl)Carbonyl]amino}-4
hydroxy-benzene acetic acid (HO-
EPCP) (Pharma grade)
39 2933.9100 N-Methyl morpholine 5%
(Pharmaceutical grade)
40 2933.9100 Methanone 5%
41 2933.9990 1-H-tetrazole-1-acetic acid[TAA] 5%
(Pharmaceutical grade)
42 2934.1090 (i) 2-Methyl-5-mercepto 1,3,4- 5%
hiazole[MMTD];
(ii) (Z)-2)2-aminothiazole-4-yl)-2-
Tert-Butoxycarbonyl) methoxyimnno
Acetic acid (ATMA);
(iii) (Z)-2-(2-aminothaizole -4-yl)2-
2(tert-Butoxycarbonyl)-
isopropoxyimino Acetic Acid[ATIBAA
or ATBA;
(iv) Sin-methoxyimino Furany1 Acetic
acid Ammonium Salt(SIMA);
(v) 7-{[2-Furany(sin- methoxyimino)
acetyl] amino}-3-hydroxymethyl ceph-
3-em-4-carboxyclic acid(Pharma
grade);
43 2934.1090 Mica Ester 5%
44 2939.4900 (+)-(IS,2S)-2-methylamino-1- 5%
phenylpropan-I-ol base
45 3203.0090 Chlorophyl1 (Pharmaceutical grade) 5%
46 3215.1990 Edible ink (Pharmaceutical grade) 5%
47 3402.1300 Non-ionic surface-active agents 5%
48 3402.1990 Other surface-active agents (Pharma 5%
grade)
49 3402.9000 (i) Alkyl aryl sulfonate. 5%
(ii) Ampnocerin “K” or “KS” (Pharma
grade)
50 3501.1000 Casein 5%
 169

51 3505.1090 (i)Modified starches (Pharmaceutical 5%

grade).
(ii)Rich starch
52 3507.9000 Pencillin G. Amidase enzyme 5%
53 3802.1000 Activated carbon (Pharmaceutical 5%
grade).
54 3802.9000 Other activated natural mineral 5%
products (Pharmaceutical grade).
55 3823.1100 Stearic acid (Pharmaceutical grade) 5%
56 3823.7000 Industrial fatty alcohols 5%
(Pharmaceutical grade)
57 3907.9900 Polyglyceryl ricinoleates 5%
(Pharmaceutical grade)
58 3912.2010 Cellulose nitrates nonplasticised 5%
C. DRUGS
1 1702.3000 Dextrose (injectable grade and 10%
pharma grade)
2 2501.0090 Sodium chloride (injectable grade) 5%
(Pharmaceutical grade).
3 2922.4990 Oseltamivir 0%
4 2924.2990 Zanamivir 0%
5 3002.2090 All types of vaccines for Hepatitis, 0%
Interferon and other medicines for
hepatitis, and etc.
6 3002.2090 All vaccines and antisera 0%
7 3002.2090 Antihemophilic factor ix (Human) 0%
8 3002.2090 Blood fraction & immunological 0%
products (biological products)
including rabies immunological (150
IU per ml) (Human)
9 3002.2090 Factor viii & plasma derived fibrin 0%
sealant. (Human)
10 3002.2090 Hepatits B immunoglobuline (Human) 0%
11 3002.2090 Human albumin (Human) 0%
12 3002.2090 Intravenous immunoglobuline 0%
(Human)
13 3002.2090 Intramuscular immunoglobuline 0%
(Human)
14 3002.2090 Tatanus immunoglobuline (250 IU/ml) 0%
(Human)
15 3002.9010 Injection Anti-Dimmunoglobulin 0%
(human) 300mcg/vial
16 3004.9050 Medicinal eye Drops 10%
17 3004.9060 Ointments, medicinal 10%
18 3004.9099 Alfacalcidole Injection 0%
19 3004.9099 All medicines of cancer. An illustrative 0%
list is given below, namely:-
 170

(i) Aminoglutethimide
(ii) Anastrazole
(iii) Asparaginase
(iv) Azathioprine
(v) BCG strain 2-8x108 CFU per
vial
(vi) Belomycin
(vii) Bevacizumab
(viii) Bicalutamide
(ix) Bortezomib
(x) Busulfan
(xi) Capecitabine
(xii) Carboplatin
(xiii) Cetuximab
(xiv) Chlorambucil
(xv) Chlormethine
(xvi) Cisplatin
(xvii) Cladribine
(xviii) Cyclophosphamide
(xix) Cyproterone acetate
(xx) Cytarabine
(xxi) Dacarbazine
(xxii) Dactinomycin
(xxiii) Danunorubicin
(xxiv) Docetaxel Trihydrate
(xxv) Diethylstilbestrol-Diphosphate
Sodium
(xxvi) Disodium Clodronate
tetrahydrate
(xxvii) Disodium Pamidronate
(xxviii) Doxorubicin
(xxix) Epirubicin
(xxx) Erlotinib
(xxxi) Etoposide
(xxxii) Filgrastim
(xxxiii) Fludarabine
(xxxiv) 5-Fluorouracil
(xxxv) Flutamide
(xxxvi) Folinic Acid, calcium salt
(xxxvii) Gemcitabine
(xxxviii) Goserelin
(xxxix) Granisetron
(xl) Hydroxyurea
 171

(xli) Ibandronic acid

(xlii) Ifosfamide
(xliii) Imatinibmisilate
(xliv) Irinotecan
(xlv) Lenograstim
(xlvi) Letrozole
(xlvii) Leuprorelin
(xlviii) Lomustine
(xlix) Medroxyprogesterone
(I) Megestrol
(li) Melphalan
(lii) Mercaptopurine
(liii) Methotrexate
(Iiv) Mitomycine
(Iv) Mitoxantrone
(Ivi) Octreotide
(Ivii) Ondensetron
(lviii) Oxaliplatin
(lix) Paclitaxel
(Ix) Pemetrexed
(Ixi) Procarbazine
(Ixii) Rituximab
(Ixiii) Sorafenib (as tosylate)
(Ixiv) Tamoxifen
(Ixv) 6-Thioguanine
(Ixvi) Topotecan
(Ixvii) Trastuzumab
(Ixviii) Tretinoin
(Ixix) Triptorelin Acetate
(Ixx) Tropisetron
(lxxi) Vinblastine
(Ixxii) Vincristine
(lxxiii) Vinorelbine
(Ixxiv) Zoledronic Acid
20 3004.9099 All medicines of Cardiac. An 0%
illustrative list is given below,
namely:-
(i) Abeiximab
(ii) Adenosine
(iii) Contrast Media for angiography
MRI (lopamidol and lohexol Inj. and
etc.)
(iv) Dopamine/Dobutamiune

a
 172

(v) Glyceryl trinitrate infusion or

tablets
(vi) Iso sorbid Injection
8(Mono/dinityrate)]
(vi) Heparin
(vii) Lopromide (Ultravist)
(viii) Nitroglycerine spray
(ix) Nitroglycerin tablets
(x) Streptokinase
(xi) Sodium Amidotrizoate Meglumine
Amidotrizoate (Urograffin)
(xii) Reteplase (Thrombolytic
treatment of suspected myocardial
infarction)
(xiii) Urokinase
21 3004.9099 All medicines for HIV/AIDS. An 0%
illustrative list is given below,
namely:-
(i) Atazanavir
(ii) Darunavir
(iii) Diadanosine
(iv) Efavirenz
(v) Indinavir
(vi) Lamivuldine
(vii) Lopinavir
(viii) Navirapine
(ix) Nelfinavir
(x) Ritonavir
(xi) Saquinavir
(xii) Stavudine
(xiii) Zaduvidine
(xiv) Zalcitabine
22 3004.9099 All medicines for thalassaemia. An 0%
illustrative list is given below,
namely:–
(i)Deferasirox
(ii)Defriprone
(iii)Desferrioxamine Mesylate
23 3004.9099 Drugs used for kidney dialysis and 0%
kidney transplant,
Hemodialysis solution/concentrate
and Peritioneal dialysis
solution/concentrate.
List of drugs is given below, namely:-
(i) Azthioprin
(ii) Basilliximab
 173

(iii) Cyclosprine
(iv) Daclizumab
(v) Everolimus
(vi) Muromonab-CB3
(vii) Mycophenolic acid
(viii) Mycophenolic acid and its salts
24 3004.9099 Beclomethasone Aerosol 0%
25 3004.9099 Cyclosporine Injection 0%
26 3004.9099 Cyclosporine Microemulsion 0%
Cap/Solution and etc.
27 3004.9099 Erythropoietin Injection, Epoetinbeta 0%
Erythopotin alpha
28 3004.9099 Ipratropium Bromide Aerosol 0%
29 3004.9099 Salbutamol Aerosol 0%
30 3004.9099 Sodium Fusidate Injection 0%
31 3004.9099 Vancomycin Chromatographically 0%
Purified Injection
32 3005.9090 Analgesic Medicated Plaster 0%
D. PACKING MATERIALS / RAW MATERIALS FOR PACKING
1 Respective Blood Bags CPDA-1: With blood 0%
Heading transfusion set pack in Aluminum foil
with set.
2 3005.1010 Surgical tape in jumbo rolls 5%
3 3005.9090 Cetylpyridinium chloride pad 5%
4 3906.9090 Polyacrylate (Acrylic Copolymers) 5%
5 3917.2390 PVC non-toxic tubing (Pharmaceutical 5%
grade)
6 3917.3100 PVC lay flat tube material grade 5%
(Pharmaceutical grade)
7 3917.3910 Pre-printed polypropylene tubes with 5%
tamper proof closures (with or
without dessicant) indicating
particulars of registered drug and
manufacturer (Pharmaceutical grade)
8 3919.1090 Other self-adhesive plates, sheets, 5%
film, foils, strip and other flat shapes
of plastic (Pharmaceutical grade)
9 3920.4910 Rigid PVC Film (Pharmaceutical grade) 10%
10 3920.4990 PVC/PVDC (Pharmaceutical grade) 5%
11 3923.1000 (i) Plastic eye baths. 5%
(ii) Printed
viskerings (Pharmaceutical grade)
12 3923.2100 Printed poly bags for infusion sets 5%
(Pharma grade)
13 3923.2900 Non-toxic plastic bags for I.V. 5%
solutions and other infusions
(Pharmaceutical grade)
 174

14 3923.3090 Plastic nebulizer or dropper bottles 5%

(Pharma grade).
15 3923.5000 Stopper for I.V. Solutions 5%
(Pharmaceutical grade).
16 3926.9099 Piston caps 5%
17 4016.9990 (i) 13 mm Rubber stoppers for 5%
injections.
(ii) 20 mm and 32 mm Rubber
stopper for injections (Pharmaceutical
grade)
18 4206.0000 Collagen strip (catgut) 5%
(Pharmaceutical grade)
19 4810.3900 Medical bleached craft paper with 5%
heat seal coating (Pharmaceutical
grade)
20 4811.4100 (i) Self adhesive paper and paper 5%
board.
(ii) Cold seal coated paper
(Pharmaceutical grade)
21 4811.5990 Paper and paper board coated, 5%
impregnated or covered with plastic
(Pharmaceutical grade)
22 4819.5000 (i) Other packing containers, including 5%
record sleeves
(ii) Glassine sleeve (Pharmaceutical
grade)
23 4811.4900 Laminated heat sealable paper 5%
24 4811.6010 Kraft paper (wax coated) 5%
25 4811.9000 Non woven paper 5%
26 5603.9200 Non woven fabric 5%
27 5903.9000 Coated Fabric 5%
28 7010.1000 Empty glass infusion bottle with and 5%
without graduation USP II
(Pharmaceutical grade)
29 7010.9000 (i) Neutral glass cartridges with 5%
rubber dices and plungers and
aluminium seals.
(ii) Neutral glass vials 1-2 ml U.S.P-1.
(iii) Moulded glass vials U.S.P. Type III
(for antibiotics Inj-powder).
(iv)Glass bottle USP type I.
(v) Neutral, clear glass, USP type I
(pre-sterilized) close mouth.
(vi)Moulded glass vials
(Pharmaceutical grade)
30 7607.1990 (i) Aluminum foil, “printed” coated 5%
7607.2000 with mylar polyester or surlyn
monomer resin on one side and vinyl
coating on the other side indicating
 175

particulars of drugs and

manufacturers (Pharmaceutical
grade).
(ii) Aluminum foil printed, indicating
particulars of drugs and
manufacturers in rolls for wrapping.
(iii) Printed Aluminium Foil for
Sachet/I.V. (Infusion Bag)
(iv) Printed Alu+Alu-Cold forming
Aluminium Foil bearing the
particulars of drugs and
manufacturers (Pharmaceutical
grade).
(v) Aluminium Foil coated with nucryl
resin top and bottom
31 7612.9090 (i) Anodized aluminium bottle. 5%
(ii) Rubber plug tear off seal.
(iii) Closing lid (aluminium Al, High
density polyethylene/polypropylene)
(Phamaceutical Grade)
32 8309.9000 (i) Stoppers for I.V. solutions. 5%
(ii) Tear off aluminium seals for
injectables.
(iii) Flip off seals for injectable vials.
(iv) Rubber plug with Tear off seal.
(v) Closing lid (Aluminium A1. High
density polyethylene/polypropylene)
(Pharmaceutical grade)
33 9018.3200 Eyeless sutures needles 5%
(Pharmaceutical grade)
34 9018.3910 Non-toxic plastic bags for I.V. 5%
solutions of dextrose and other
infusions (Pharmaceutical grade)
E. DIAGNOSTIC KITS/EQUIPMENTS
1 3822.0000 4C Es Trionyx 5%
2 3822.0000 5C Cell control Lnormal 5%
3 3822.0000 Albumin bcg 5%
4 3822.0000 Alkaline phosphatase (A1b) 5%
5 3822.0000 Ammonia Modular 5%
6 3822.0000 Aslo tin 5%
7 3822.0000 Bilirubin kit 5%
8 3822.0000 Blood cancer kit 5%
9 3822.0000 Blood glucose test strips 5%
10 3822.0000 Bovine precision multi sera 5%
11 3822.0000 Breast cancer kit 5%
12 3822.0000 CBC Reagent (For hematology 0%
analyzer) Complete blood count
reagent
 176

13 3822.0000 Cervical cancer/HPV kit 5%

14 3822.0000 Ck creatinin kinase (mb) 5%
15 3822.0000 Ck nac 5%
16 3822.0000 Control 5%
17 3822.0000 Control Sera 5%
18 3822.0000 Cratinin sysi 5%
19 3822.0000 Crp control 5%
20 3822.0000 Detektiion cups 5%
21 3822.0000 DNA SSP DRB GenriclC 5%
22 3822.0000 Elisa Kit 0%
23 3822.0000 Ferritin kit 5%
24 3822.0000 Glulcose kit 5%
25 3822.0000 HCV 5%
26 3822.0000 HCV amp 5%
27 3822.0000 Hcy 5%
28 3822.0000 Hdl Cholesterol 5%
29 3822.0000 Hdl/ldl chol 5%
30 3822.0000 HEV (Hepatitis E virus) 5%
31 3822.0000 HIV Kits 5%
32 3822.0000 Hla B27 5%
33 3822.0000 I.C.T. (Immunochromatographic kit) 0%
34 3822.0000 ID-DA Cell 5%
35 3822.0000 Ige 5%
36 3822.0000 Immunoblast (western blot test). 0%
37 3822.0000 Inorganic Phosphorus kit 5%
38 3822.0000 ISE Standard 5%
39 3822.0000 Kit amplicon kit (for PCR) 5%
40 3822.0000 Kit for vitamin B12 estimation 5%
41 3822.0000 Kits for automatic cell separator for 0%
collection of platelets
42 3822.0000 Lac 5%
43 3822.0000 Lc hsv 5%
44 3822.0000 Ldh kit (lactate dehydrogenase kit) 5%
45 3822.0000 Lipids 5%
46 3822.0000 Liss Coombs 5%
47 3822.0000 NA/K/CL 5%
48 3822.0000 Oligo 5%
49 3822.0000 Pac 5%
50 3822.0000 PCR kits 0%
51 3822.0000 Pregnancy test 5%
52 3822.0000 Protein kit 5%
53 3822.0000 Proteins 5%
 177

54 3822.0000 Reticulocyte count (control) Retic C 5%

Control
55 3822.0000 Ring 5%
56 3822.0000 Standard 5%
57 3822.0000 Strips for sugar test 5%
58 3822.0000 Tina quant 5%
59 3822.0000 Typhoid kit 5%
60 3822.0000 U 5%
61 3822.0000 U/CSF 5%
62 3822.0000 Ua plus 5%
63 3822.0000 UIBC (Unsaturated iron binding 5%
capacity)
64 3822.0000 Urea uv kit 5%
65 3822.0000 Urine Analysis Strips 5%
66 3822.0000 Urine test strips 5%
67 3822.0000 Vitros Diagnostic kit 5%
2. This Notification shall take effect from the 14th June, 2009.
_______________

S.R.O. 484(I)/2009, Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (2) of section 13 of the Sales Tax Act,
1990, the Federal Government is pleased to direct that the following further amendments shall be made
in its Notification No. S.R.O. 575(1)/2006, dated the 5 th June, 2006, namely:-
In the aforesaid Notification, in the Table,-
(a) Against S. No. 1 in column (1),–
(i) under sub-serial (D) in column (2),–
(a) against sub-serial number (4) in column (3), figure “8429.5100” shall be omitted;
and
(b) against sub-serial number (8) in column (3), figure “9026.2000” occurring for
second time shall be omitted:
(ii) under sub-serial (G) in column (2),-
(a) against sub-serial number (8) in column (3), after the figure “8419.8100”, figure
“8419.3900” shall be inserted;
(b) against sub-serial number (17) in column (3), for the figure “9406.0090” the
words “Respective headings” shall be substituted; and
(c) against sub-serial number (18) in column (2), for the words “Pre-fabricated
buildings” the words “Dairy, livestock and poultry sheds” shall be substituted;
(iii)under sub-serial (J) in column (2), against sub-serial (3) in column (3), for the figure
“9406.0040” the words “Respective headings” shall be substituted; and
(iv) after sub-serial (J) in column (2), the following new sub-serial number alongwith caption and entries relating
thereto in columns (2), (3), (4) and (5) shall be added, namely:–
“(K) Fish or shrimp 0% 1. The Ministry of
farming and Livestock & Dairy
seafood processing Development shall certify in
machinery and the prescribed manner and
equipment. format as per Annex-B that
the imported goods are
bonafide requirement. The
authorized officer of the
 178

Ministry shall furnish all

relevant information online
to Pakistan Customs
Computerized System
(PaCCS)/One Customs
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 within a period of five
years of its import except
with the prior approval of
the FBR.”;
(1) Compressor 8414.8090
(2) Generator 8502.1130
8502.1190
8502.1200
(3) Condenser 8418.9990
(4) Ammonia Gas 7411.2900
pipes
(5) Flat freezer 8418.3000
(6) Boast freezer 8418.4000
(7) Fiber glass tubs 7019.9090
(8) Insulated plants 8418.6990
(9) IQF plants 8438.5000
(10) Flak ice plants 8414.6990
(11) Fish filleting 8438.5000
machine
(b) against S. No. 7 in column (1), under the caption “A. Medical Equipment” in column (2),
against sub-serial number (4) thereof for the figure “9405.4090” in column (3), the figure
“9018.9090” shall be substituted;
(c) against Sr. No.23 in column (1), in column (3), for the words “Respective Headings” the
words, letter and figures “Chapters 84 and 85 excluding the items as specified in Annex-C” shall
be substituted;
(d) against Sr. No. 28 in column (1), against sub-serial number (5), in column (2), in column
(3), for the figure “8508.6090” the figure “8479.1000” shall be substituted;
(e) against S. No. 33 in column (1), -
(i) against sub-serial number (15) in column (2), in column (3), for the figure “8528.5990”
the figure “8528.5900” shall be substituted;
(ii) against sub-serial number (20) in column (2), in column (3), for the figure “8528.5990”
the figure “8528.5900” shall be substituted; and
(iii)against sub-serial number (49) in column (2), in column (3), for the figure “8528.5190”
the figure “8528.5100” shall be substituted;
(f) against Sr. No. 35 in column (1),-
(i) in column (2), in the caption, for the words “solar energy” the words and commas “
renewable source of energy like solar, wind, geothermal etc.,” shall be substituted; and
 179

(ii) in column (2), after Sr. No. 10, the following new serial number alongwith caption and entries relating
thereto in column (3) shall be added, namely:-
“11. Geothermal energy equipments.
1. Geothermal Heat Pumps 8418.6100 8418.6990
2. Geothermal Reversible Chillers 8418.6990
3. Air handlers for indoor quality control equipments 8415.8300
4. Hydronic heat pumps 8418.6100
5. Slim Jim heat exchangers 8419.5000
6. HDPE fusion tools 8515.8000
7. Geothermal energy Installati on 8419.8990
tools and Equipment
8. Dehumidifi cati on equipment 8479.6000
9. Thermostats and IntelliZone 9032.1090”;
(g) after Annex-B, the following new Annex shall be added, namely:-
“ Annex-C
[See Sr. No. 23]
CHAPTER 84
1. Respective headings of parts including auto parts.
2. 8407 (excluding 8407.1000, 8407.2100, 8407.2900, 8407.9010, 8407.9090), 8408 (excluding
8408.1000, 8408.9000), 8413.2000, 8414.2000, 8414.3000, 8414.5100, 8414.6000, 8415.0000,
8418.0000 (excluding 8418.6910, 8418.6920, 8418.6990), 8419.1000, 8422.1100, 8423.1000,
8433.1000, 8443.3100, 8443.3200, 8443.3900, 8450.0000, 8452.1000, 8452.4000, 8469.0000,
8470.0000, 8471.0000, 8472.0000 (excluding 8472.9010), 8473.0000, 8476.0000, 8481.0000,
8482.0000, 8483.0000, 8484.0000, 8487.0000 (excluding 8487.1000 and 8487.9090).
CHAPTER 85
1. Respective headings of parts including auto parts.
2. 8501.1000, 8504.1000, 8504.4010, 8504.4020, 8506.0000, 8507.0000, 8508.0000 (excluding
8508.6010), 8509.0000, 8510.0000, 8511.0000, 8512.0000, 8513.0000, 8516.0000, 8517.0000
(excluding 8517.6230, 8517.6240, 8517.6250, 8517.6260, 8517.6910), 8518.0000, 8519.0000,
8521.0000, 8522.0000, 8523.0000, 8525.0000, 8527.0000, 8528.0000, 8529.0000,
8531.0000, 8534.0000, 8536.0000, 8537.0000 (excluding 8537.2000), 8538.0000, 8539.0000,
8540.0000, 8541.0000, 8542.0000, 8543.7010, 8544.0000, 8546.0000, 8547.0000,
8548.0000.”.
2. This notification shall take effect from 14th June, 2009”.”
_______________

S.R.O. 486(I)/2009, Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to rescind its Notification No. S.R.O. 767(I)/2000,
dated the 23rd October, 2000.
_______________

S.R.O. 487(1)/2009, Islamabad, the 13th June, 2009.- In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to rescind its
Notification No. S.R.O. 492(1)/2007, dated the 9 th June, 2007.
_______________

S.R.O. 488(I)/2009, Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 565(1)/2006, dated the 5th
June, 2006, namely:–
 180

In the aforesaid Notification, in the Table, in column (1),–

(1) against S. No. 4, under the heading “Raw Materials” in column (3), in entries (3) and (4)
for the word “Sheets” the words “in Coils” shall be substituted;
(2) against S. No. 24, after entry (22) in column (3) and the corresponding entry relating thereto in column (4),
the following new entries respectively shall be added, namely;
“(23) Memory Stick 8523.5110
(24) Electric Integrated Circuit 8542.3900
(25) LED Display 9013.8000”;
(3) against S. No. 32, in column (3) under heading “Raw Materials”, after entry (7) and entry
relating thereto in column (4), the following new entry shall be added, namely;
“(8) Insulating varnish class H insulation.3208.9010”;
(4) against S. No. 36, in column (2) after the word “stuff” the comma, words and figures
“,Textile and Tanning Chemical Auxiliaries of headings 32.04, 34.03 and 38.09” shall be added;
(5) against S. No. 42, in column (3) under heading “Raw Materials”, after entry (5) and entry
relating thereto in column (4), the following new entry shall be added, namely;
“(6) Poly Carbonate Sheets 3920.6100”;
(6) against S. No. 78, in column (2),-
(i) in entry (1) after the word “Machines” the comma and the words “, parts and
components thereof” shall be added;
(ii) in entry (2) after the word “Machine” the comma and the words “, parts and
components thereof” shall be added; and
(iii)in entry (3) after the word “Tools” the comma and the words “, parts and components
thereof” shall be added;
(7) against S. No. 79, in column (2),-
(i) in entry (1) after the word “forming” the comma and the words “, parts and components
thereof” shall be added;
(ii) in entries (a) and (b) after the brackets and the words “(All types)” the comma and the
words “, parts and components thereof” shall be added;
(iii)in entries (2) and (3) after the words “Machines” the comma and the words “, parts and
components thereof shall be added; and
(iv)in entry (4) after the word “Lines” the comma and the words “, parts and components
thereof” shall be added;
(8) against S. No. 83, in column (3), under entry (ii), against item (h), in column (5) for the
figures and full stop “30.6.2009” the figures and full stop “30.6.2010” shall be substituted;
(9) against S. No. 107, in column (2) for the words “Packaging Industry” the words and
brackets “Flexible Packaging Laminates Industries (excluding Cigarettes Industries)” shall be
substituted;
(10) against S. No. 135, in columns (3) for the heading “sub-components and components” and entries relating
thereto in columns (3), (4), (5) and (6) the following shall be substituted, namely;
“Sub-components and Components 10% ad val. Nil”. and
(1) Refrigerator Cabinet insulation Foam 3920.3000.
(2) Rubber Pad for Compressor 4016.1090
(3) Heat Preservation Sponge 6806.9000
(4) Steel Pipe for Tank 7304.1900
(5) Cold Water Tank (SS) 7310.1000
(6) Hot Water tank (SS) 7310.1000
(7) Screw Sets 7318.1400
 181

(8) Evaporator Copper Tube 7411.1090

(9) Compressor Mounting Plate (Metal) 8418.5000
(10) Front Upper Shell (Plastic) 8418.5000
(11) Drip Tray with Cover (Plastic) 8418.5000
(12) Terminal block 8418.9990
(13) Air Filter sponge 8421.3940
(14) Non Return valve Rubber Pipe 8481.3000
(15) Water Taps (Cold & Hot Water) 8481.8090
(16) Water Heater Element 8516.8010
(17) Thermal Switch for Hot Controller 8516.8090
(18) Switch Hot water 8535.3010
(19) Switch Cold water 8535.3010
(20) OLP (Over Load Protector) 8536.9030
(21) Power Cord 8544.4990”; and
(11) after S. No. 145 and entries relating thereto in columns (1), (2), (3), (4), (5) and (6), the following new S. Nos.
and entries relating thereto shall be added, namely:-
(146) Linear Alkyl (1) Linear Alkyl 2902.9090 0% ad val Nil
Benzene Benzene

Benzene
Sulphonic Acid.
(147) Double Glazed (1) IUPVC Frames 3925.2000 10% ad Nil
(Energy and val.
Efficient) uPVC thresholds.
Doors and
Windows.
(148) Pre- fabricated (1) Aluminum- 7210.6190 5% ad val. Nil
Steel Buildings. Zinc Coated,
Cold rolled
steel sheet
(Thickness
0.5mm to
0.7mm)
(2) GI Sheets 7210.3090
(Thickness
1.5mm to
2.5mm)
(3) MS Sheet, Hot 7208.5290
Rolled
(thickness 4
mm to10
mm)
(149) Electrolytic Tin (1) Tin Mill Black 7209.1890 5% ad val. Nil
Plate. Plate (TMBP)
(150) LPG Dispenser. (1) Nozzle 8413.9140 0% ad val. Nil
(2) Inlet Filter 8421.3990
(3) Non Return 8481.3000
Valve
(4) Solenoid / 8481.8090
 182

Isolation
Valve
(5) LCD Back light 8531.2000
(6) LCD Display 9013.8000
(7) Pressure 9026.2000
Gauge
(8) LPG Flow 9026.8000
Meter
(151) Cylinders for (1) Steel Tube 73.04 0% ad val. If imported by
compressed local
natural gas manufacturers
duly
recognized
and
recommended
by EDB giving
input- output
ratios.
(152) Silicon Sealant (1) Silicones in 3910.0000 0% ad val. Nil”
primary
forms.
2. This Notification shall take effect from the 14th June, 2009.
_______________

S.R.O. 489(I)/2009, Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 655(1)/2006, dated the 22 nd
June, 2006, namely:–
In the aforesaid Notification,-
(a) for the letters “PACCS”, wherever occurring the letters and the words “PaCCS or One
Customs System” shall be substituted;
(b) for the words, brackets and letters “Customs Computerized System (PACCS)” wherever
occurring the words, brackets and letters “Customs Computerized System (PaCCS) or One
Customs System” shall be substituted;
(c) In the conditions,-
(i) in condition (v), after the word “information” the words “including approved quota of
items to be imported” shall be inserted and after the figure “1969” the comma and the
words “, after reviewing or finalizing data required under condition (vi)” shall be inserted;
and
(ii) after condition (ix), the following new condition shall be inserted, namely:-
“(ixa) the manufacturer-cum-importer shall provide information to the EDB within
forty-five days of the ending year regarding,-
(a) the import, local procurement and consumption of all the input materials; and
(b) the production and supply of the components and assemblies.
The Input Output Ratio Certificate shall be revalidated only on receipt of
aforesaid complete information”.
2. This Notification shall take effect from the 14th June, 2009.
_______________

S.R.O. 490(I)/2009 Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
 183

following further amendments shall be made in its Notification No. S.R.O. 656(1)/2006, dated the 22 nd
June, 2006, namely:-
In the aforesaid Notification,-
(a) for the letters “PACCS”, wherever occurring, the letters and the words “PaCCS or One
Customs System” shall be substituted;
(b) for the words, brackets and letters “Customs Computerized System (PACCS)”, wherever
occurring, the words, brackets and letters “Customs Computerized System (PaCCS) or One
Customs System” shall be substituted;
(c) in the conditions,-
(i) in condition (v), after the word “basis” the words “latest by 15th August, each year,
failing which the manufacturing certificate of the firm shall not be revalidated” shall be
inserted;
(ii) in condition (x), for clause (b) the following shall be substituted, namely:-
“(b) the clearance Collectorate maintaining quota register of each cleared quantity
shall update PaCCS or One Customs System and debiting of the quota on paper shall
cease henceforth and further clearance shall stop once the quota is exhausted, unless
enhanced by EDB, for each item;” ; and
(iii)in condition (xi) for the full stop, at the end, a semi colon and word “and” shall be
substituted and thereafter the following new condition shall be inserted, namely:-
“(xii) in case of violation of any of the conditions of this notification, Engineering
Development Board may suspend or not revalidate certificate for assembly or
manufacture of vehicles and lists of importable components, pending removal of cause
of suspension or finalization of audit, as the case may be;”;
(d) paragraph 2 shall be omitted;
(e) For the “Table” the following shall be substituted, namely:–
Description of vehicles Description of Imported Rate of Duty
inputs
(1) (2) (3) (4)
1. Agriculture tractors of (i) Components for 0%
heading 87.01. assembly/manufacture in any
kit form
(ii) (ii) Tyres / Tubes 20%
2. Road tractors for semi- (i) Components for 0%
trailers and trailers (prime assembly/manufacture in any
movers) of 280 HP and kit form
above falling under PCT (ii) Tyres / Tubes
heading 87.01. 20%
3. Other tractors falling under (i) Components for 10%
PCT heading 87.01. assembly/manufacture in any
kit form
(ii) Tyres / Tubes 20%
4. Vehicles (Non-CNG) of (i) Components for 5%
heading 87.02. assembly/manufacture in any
kit form
(ii) Tyres / Tubes 5%
5. Vehicles (CNG Dedicated) of (i) Components for 0%
heading 87.02. assembly/manufacture in any
kit form
(ii) Tyres / Tubes 5%
6. Motor cars and vehicles of (i) Components for 32.5%
 184

heading 87.03 [excluding assembly/manufacture in any

specially designed twin kit form
cabin type taxi of heading (ii) Tyres/Tubes 25%
8703.3227 and 4-Stroke
Auto Rickshaw of heading
8703.2115).
7. Specially designed twin (i) Components for 5%
cabin type taxi of heading assembly/manufacture in any
8703.3227. kit form
(ii) Tyres / Tubes 25%
8. 4-Stroke Auto Rickshaw of (i) Components for 20%
heading 8703.2115 assembly/manufacture in any
kit form
(ii) Tyres / Tubes 25%
9. Vehicles of g.v.w not (i) Components for 20%
exceeding 5 tons fal ling assembly/manufacture in any
under PCT heading 87.04. kit form
(ii) Tyres / Tubes 20%
10. Vehicles of g.v.w exceeding (i) Components for 10%
5 tons falling under PCT assembly/manufacture in any
heading 87.04. kit form
(ii) Tyres / Tubes 5%
11. Vehicles of heading 87.11. (i) Components for 15%
assembly/manufacture in any
kit form
(ii) Tyres / Tubes 25%
12. Trailer of heading 87.16 The following component for 5%
assembly/manufacture of trailers:-
(i) Axle tube with brake without
Hub and Drum.
(ii) Pneumatic suspension.
(iii) ABS system.
(iv) King Pin.
(v) Fifth wheel.
(vi) Axle Complete
(vii) Mechanical Suspension.
(viii) ASR Brake system.
(ix) Pintle Hook.
(x) Wheel Rim (size 8.0x20).
13. Assembly kits of all the 0%
above categories to the
number of their exported
units subject to the
following conditions:-
(i)no duty drawback was
claimed at the time of
export;
(ii)The imported kits relate
to the vehicle of same
engine capacity as were
 185

exported; and
(iii)the importer makes a
declaration in the bill of
entry or goods declaration
(GD) at the time of import
that he intends to avail this
facility and produces the
following evidence of
export; namely:-
(a)a copy of the bill of entry
or goods declaration (GD)
bearing examination report
of customs;
(b)bill of lading; and
(c)foreign exchange
repatriation certificate.
14. Materials for direct use, as 0%”;
are not manufactured
locally, in the manufacture
of vehicles listed at Sr. No. 1
to 12 above.
(f) in Annexure B,-
(i) in Form-A; under heading “Detail of input goods”, in the heading of column (2), after the word
“Description” the words “as per parts list” shall be inserted and then the following new column shall be
inserted, namely:-
“Description as per
1st Schedule to the
Customs Act, 1969
(2a)” ; and
(ii) in Form-B;
(a) after the word “Description” the words “as per parts list” shall be inserted; and
(b) after the column for “Specifications of imported inputs” the following
new columns shall be inserted, namely:­
“Description as per Part No. ; and
First Schedule to
the Customs Act,
1969 (IV of 1969)
(g) under the heading “Verification of Import Lists”,-
(i) in List 1, in column (2), after the word “Part Name” the words “as per parts list” shall be inserted and after
column (2) the following new column shall be inserted, namely:-
“Description as per
1st Schedule to the
Customs Act, 1969
(2a)” ; and
(ii) In List 2, in column (2), after the word “Part Name” the words “as per parts list” shall be inserted and after
column (2) the following new column shall be inserted, namely:-
“Description as per
1st Schedule to the
Customs Act, 1969
(2a)” ; and
 186

2. This Notification shall take effect from the 14th June, 2009.
_______________

S.R.O. 492(I)/2009, Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and sub-section (2) of section 13 of the Sales Tax Act,
1990, and in supersession of its Notification No. S.R.O. 1065(1)/2005, dated the 20 th October, 2005, the
Federal Government is pleased to exempt the whole of the customs–duty and sales tax on temporary
importation of goods for subsequent exportation as specified in the Table below subject to the following
conditions, namely:–
(i) this facility shall be available to exporters also registered as manufacturers;
(ii) the importer shall make an application for grant of exemption to the Collector of
Customs, giving full particulars of the goods and the purpose for which they are imported;
(iii) the importer shall submit a bank guarantee or pay order or indemnity bond along with
post-dated cheque equivalent to the amount of customs-duty and sales tax otherwise leviable
thereon;
(iv) the importer shall export temporarily imported goods after due processing thereof
within eighteen months of their import. On a request from the importer, the Collector
concerned shall allow extension for six months on payment of one per cent surcharge per
month on C&F value of the goods for which extension has been sought. The Board may
consider any further extension in exceptional circumstances on such terms and conditions as
may be deemed appropriate in the matter;
(v) only such goods, except the goods specified at serial No.2 of the Table, as are capable of
identification at the time of their re-exportation, shall be exempt from the aforesaid customs
duty and sales tax;
(vi) packing material, as mentioned in the Table at serial No.10, may be imported empty and
exported filled;
(vii) at the time of importation of goods, the importer shall make a written declaration on the
goods declaration to the effect that the goods are imported for the purposes of this
notification;
(viii) after ascertaining correctness of description, classification and importability status of
goods at the time of import, the same shall be assessed to value in accordance with the values
determined for identical goods cleared for local consumption for the sake of uniformity;
(ix) at the time of export, the exporter shall make declaration that the goods were imported
for the purposes of this notification, giving particulars of import documents (IGM No. & date,
G.D. No. & date, Cash No. & date, etc.) and at least 20% value addition has been made as
compared to value of goods at the time of import;
(x) the export shall be allowed only if the Assistant Collector or the Deputy Collector,
incharge of export station, is satisfied that the goods temporarily imported have been duly
consumed in the manufacture of goods being exported;
(xi) immediately after the re-exportation of goods, the applicant shall produce evidence to
the Collector of Customs concerned that the goods have been re-exported within the
stipulated period. On production of such evidence/declaration, bank guarantee, pay order or
the indemnity bond along with post-dated cheque submitted at the time of import shall be '
released. For regular manufacturers-cum-exporters, the concerned export station must
immediately inform electronically the concerned bank guarantee section of import Collectorate
regarding verification of export against particular Goods Declaration for release of bank
guarantee, pay order or the indemnity bond along with post-dated cheque submitted at the
time of import;
(xii) transfer of ownership of temporarily imported goods may be allowed by the Collector of
Customs, or the Additional Collector of Customs concerned, at his discretion, subject to the
transfer of title of bank guarantee or pay order or indemnity bond along with post-dated
cheque submitted at the time of import:
 187

Provided that the transfer of ownership shall be allowed only in cases in which
the imported goods have undergone the manufacturing process to reach an intermediary
product stage;
(xiii) in cases where temporarily imported goods are used in addition to other imported raw
materials on the import of which duties and taxes have been paid and repayment is admissible
on export of ultimately manufactured products, the f.o.b. price for claiming such repayment
shall be the value excluding value of the goods temporarily imported under this notification;
(xiv) only such operations as are listed in the Table shall be carried out with the inputs and
raw materials imported under this notification;
(xv) exemption under this notification shall not be allowed in cases in which physical
inspection of manufacturing becomes necessary for the purposes of such exemption;
(xvi) all the existing licenses and those issued under Chapter XV of the Customs Rules, 2001
shall be deemed to have been issued with immediate effect till the validity of existing licenses
already issued. All liabilities of the said licensees shall be deemed to be their liabilities under
the said rules; and
(xvii) the Collector of Customs, or the Additional Collector of Customs, may refuse entry of
any goods without payment of customs-duty and sales tax if prima facie it appears to him that
such entry is in violation of any of the conditions of this notification.
2. An application under condition (ii) shall be submitted on the following format, namely:
FORM
Name of the unit with address
N.T.N. No.
Sales Tax Registration No.
Station of import.
Value of goods exported in the
previous financial year
Description of imported inputs
Description of goods to be
exported
Input and output ratio of entries 6
and 7 above
Name and signature of the applicant
TABLE
(1) (2)
1. Materials, excluding fabrics and leather, for manufacturing of —
(a) leather goods and leather garments and sports goods;
(b) garments and textile made—ups including foundation garments; and
(c) furniture, wood ware and fittings.
2. Textile designs, artwork, transparencies (bearing design for textiles) for reproduction of
finished goods.
3. Plush fabrics, nylon, polyester fiber, eyes and nose for use in stuffed toys.
4. Unit soles with heels, soles and heels for manufacture of footwear.
5. Price labels or tags for affixing on finished goods.
6. Trimmings, buttons, belts, fur lining, lining, pads and inter lining material, Velcro tapes,
hangers, special labels, special buttons, rivets, eyelets, buckles, special brand tags, special
thread and other items such as decorative fittings, zippers, locker loops, etc., for use in ready
made garments, foundation garments, textile made ups, footwear and other items mentioned
in this table.
 188

7. Materials for embellishing or decorating goods produced in Pakistan for exportation.

8. Components and sub-components for assembly of –
(a) machinery and parts thereof;
(b) electrical and electronic equipment and parts thereof;
(c) bicycles;
(d) aluminium-ware, steel ware, kitchen utensils and cutlery, vacuum flasks;
(e) surgical instruments; and
(f) dolls, toys, and games.
9. Forgings of surgical instruments for processing.
10. Packing material (excluding straw, paper, paper cones, glass wool and like material) for
packing of goods.
11. Polypropylene woven and jute bags subject to the condition that such bags bear the
particulars of the Pakistani exporters in permanent print on each bag.
12. Materials for general superficial processes such as elementary repairs, cleaning, removal
of damaged parts, sorting, straining, sifting, clarification, filtering, marking, sealing, labeling, re-
packing, drying, preserving, refrigerating, chilling, fumigating, greasing, anti-rusting, protective
coating, printing, etc.
13. Materials, for the manufacture of decorative items, through the process of cutting,
knotting or any other process, to be used in gift packs, toys and sweets/chocolate boxes, etc.,
for decoration purposes.
14. Materials, sub-components and components for the manufacture of stationery items like
pencils, glue sticks, fiber tip pens and staples, etc.
_______________

S.R.O. 497(I)/2009, Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to exempt on
import into Pakistan from Peoples Republic of China the goods specified in column (3) of the Table
below, falling under the Heading and sub-Heading numbers of the First Schedule to the said Act as
specified in column (2) of the said table, from the whole of customs duties in excess of the rates
specified in column (4) of the Table;
Provided that the goods are manufactured or produced and imported in conformity with the
provisions of the Ministry of Commerce Notification No. SRO 1286(1)/ 2005, dated the 24th December,
2005 read with the Import Policy Order,2008.
TABLE
SNo PCT Code Description Rate (%)
(1) (2) (3) (4)
1 6908.1000 Tiles, cubes and similar articles, whether or not rectangular, the 35
largest surface area of which is capable of being enclosed in a
square the side of which is less than 7 cm
2 6908.9010 Tiles 35
3 6910.1010 Wash basin 35
4 6910.1090 Other 35
5 6910.9000 Other 35
6 6911.1010 Dinner sets 35
7 6911.1020 Dishes 35
8 6911.1030 Plates 35
9 6911.1040 Tea cups and saucers 35
10 6911.1090 Other 35
 189

11 6911.9000 Other 35
12 6912.0010 Tableware and kitchenware 35
13 6912.0090 Other 35
14 6913.1000 Of porcelain or china 35
15 6913.9000 Other 35
16 6914.1000 Of porcelain or china 35
17 6914.9000 Other 35
18 8414.5190 other 35
19 8415.1010 Window or wall type 35
20 8415.1020 Self contained or split type comprising of inner and other unit 35
whether or not imported separately
21 8415.1090 Other 35
22 8415.2010 For motor cars of heading 8703 and vehicles of subheadings 50
8703.2113 and 8703.2193
23 8415.2090 Other 50
24 8415.8100 Incorporating a refrigerating unit and a value for reversal of the 35
cooling/heat cycle (reversible heat)
25 8415.8200 Other, incorporating a refrigerating unit 35
26 8415.8300 Not incorporating a refrigerating unit 35
27 8418.1000 Combined refrigerator freezers, fitted with separate external 35
doors
28 8418.2100 Compression type 35
29 8418.3000 Freezers of the chest type, not exceeding 800 L capacity 35
30 8418.5000 Other refrigerating or freezing chests, cabinets, display counters, 35
showcases and similar refrigerating or freezing furniture
31 8517.1100 Line telephone sets with cordless handsets 25
32 4804.2100 Unbleached 25
33 4804.2900 Other 25
34 4810.9900 Other 25
2. This notification shall take effect from the 14 th day of June, 2009.
_______________

S.R.O. 485(I)/2009, Islamabad, the 13th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 3 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendment
shall be made in its Notification No. S.R.O. 678(I)/2004, dated the 7 th August, 2004, namely:–
In the aforesaid Notification, in clause (1), for the words “picks-ups”, the words “pick-ups
including bullet proof”, shall be substituted.
2. This notification shall take effect from 14th June, 2009.
_______________

S.R.O. 595(I)/2009, Islamabad, the 25th June, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that in its
Notification SRO No 497(I)/2009 dated the 13 th June, 2009, the following amendment shall be made and
shall be deemed always to have been made, namely:–
In the aforesaid Notification, in the Table, against Serial Nos 1 to 21 and 24 to 30 in column (1), in
column (4) for the figure “35” the figure “37.5” shall respectively be substituted.
 190

_______________
 191

S.R.O. 836(I)/2009, Islamabad, the 1st October, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 565(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in the Table, against Sr. No. 146 in column (1), in column (4), for the
figures “2902.9090”, the figures “3817.0000” shall be substituted.
_______________

S.R.O. 863(I)/2009, Islamabad, the 6th October, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. SRO 567(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in Table-I,–
(a) after S.No.26 in column (1) and the entries relating thereto in columns (2), (3), (4) and
(5), the following new S.No. and the entries relating thereto shall be inserted, namely:–
“26A. 7101.1000 Natural Pearls 0% Nil”;
(b) the existing S.No.26A shall be renumbered as S.No.26AA; and
(c) after serial number 26B in column (1) and the entries relating thereto in columns (2), (3), (4) and (5), the
following new serial number and the entries relating thereto shall be inserted, namely:–
Synthetic or reconstructed0% Nil”.
precious stones or semi-
precious stones, whether or
not worked or graded but
not strung, mounted or set;
un- graded synthetic or
reconstructed precious or
semi-precious stones,
temporarily strung for
convenience of transport.
_______________

th
S.R.O. 934(I)/2009, Islamabad, the 28 October, 2009.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O 565(I)/2006, dated the 5th June,
2006, namely:–
In the aforesaid Notification, in the Table, against S. No. 13 in column (1), in column (3), under
the heading “Raw materials”, after entry (17) and the entry relating thereto in column (4), the following
new entry and the entry relating thereto shall be added, namely:–
Wood sandwich blocks with lead 9609.9000”.
encased
_______________

S.R.O. 15(I)/2010, Islamabad, the 6th January, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O 567(I)/2006, dated the 5 th June,
2006; namely:–
In the aforesaid Notification, in Table-II, after serial number 8 in column (1) and the entries
relating thereto in columns (2), (3), (4) and (5), the following new serial numbers and the entries relating
thereto shall be inserted, namely:–
“8A 52.05 Cotton yarn (Other than sewing thread), containing 0% Nil
85% or more by weight of cotton, not put up for
retail sale.
8B 52.06 Cotton yarn (Other than sewing thread), containing 0% Nil”.
less than 85% by weight of cotton, not put up for
retail sale.
_______________
 192

S.R.O. 71(I)/2010, Islamabad, the 11th February,2010.– In exercise of the powers conferred by
sub-section (1) of section 19 of the Customs Act,19069 (IV of 1969), the Federal Government is pleased
to exempt whole of the amount of default surcharge and penalty payable by a person, having registered
business premises located in the areas of Bajaur Agency, Mohamand Agency, Lhyber Agency, Orakzai
Agency, Kurum Agency, North Waziristan Agency, South Waziristan Agency, Malakand Agency, District
Swat, District Buner, District Shangla, District Upper Dir, and Lower Dir, District Hangu, District Bannu,
District Tank, District Kohat, District Chitral, District Charsadda, District Peshawar, District D.I Khan,
District Batgram, District Lakki Marwat, District Sawabi and District Mardan, against whom an amount of
customs duty is outstanding on account of any audit observation, audit report, adjudication order or
who has failed to pay any amount of customs duty or claimed inadmissible refund or duty drawback due
to any reason, subject to the condition that the outstanding principal amount of customs duty is paid by
the 30th June,2010.
2. The exemption under this notification shall not be admissible to the manufacturers and
supplier of cement, sugar, beverage and cigarettes.
_______________

S.R.O. (I)/2010, Islamabad, the 15th February,2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales
Tax Act, 1990, sections 148 and 53 read with the Second Schedule to the Income Tax Ordinance, 2001
(XLIX of 2001), the Federal Government is pleased to direct that the following further amendments shall
be made in its Notification No. S.R.O 577(I)/2005, dated the 6 th June, 2005, namely:–
In the aforesaid Notification,–
(i) in the preamble, after the word “vehicles” the words “of Asian makes” shall be inserted;
and
(ii) for the Table, the following shall be substituted, namely:–
TABL
S. Automotive vehicles of Duty and taxes in US$ or
No. Asian makes meant for equivalent amount in Pak
transport of persons. rupees.
(1) (2) (3)
1. Upto 800CC US$ 4400
2. Upto 801cc to 1000cc US$ 5500
3. From 1001cc to 1300CC US$ 11000
4. From 1301cc to 1500CC US$ 15400
5. From 1501cc to 1600CC US$ 18700
6. From 1601 cc to 1800 CC US$ 23100]
(excluding jeeps)
_______________

S.R.O. 104(I)/2010, Islamabad, the 22nd February, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 497(I)/2009, dated the 13 th
June, 2009, namely:–
In the aforesaid Notification, after S. No. 34 in column (1) and the entries relating thereto in
columns (2), (3) and (4), the following new S. Nos. and the entries relating thereto shall be added,
namely:–
6910.1020 Bath tubs ceramic 37.5
6910.1030 Bidets ceramics 37.5
6910.1040 Cisterns ceramic 37.5
6910.1050 Sink ceramic 37.5
6910.1060 Toilet ceramic 37.5
6910.1070 Urinal ceramic 37.5
6910.1080 Water closet pans 37.5”
 193

_______________

S.R.O. 277(I)/2010, Islamabad, the 27 th April, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to exempt new
motor cars of engine capacity not exceeding 1350 cc, fitted with special gadgets for the purpose of
compensating disability, from customs-duty leviable in the First Schedule to the said Act, as is imported
by a Pakistani disabled national for his own use subject to the following conditions, namely:–
(i) only those persons shall be entitled to import the customized cars who have been issued
an import authorization certificate by the Ministry of Commerce on the recommendations of the Federal
Board of Disabled Persons comprising representatives of the Ministry of Commerce, Federal Board of
Revenue and Ministry of Social Welfare, and an orthopedic surgeon nominated by the Ministry of
Health;
(ii) the import authorization certificate shall be issued as per criteria and conditions laid
down in the Notification No. 16(I)/2006 – Import II, dated the 28 th September, 2009, issued by the
Ministry of Commerce;
(iii) only one car shall be allowed to be imported by a disabled person in terms of this
notification; and
(iv) the car shall not be sold or otherwise transferred to any person before the expiry of five
years from the date of its arrival in Pakistan, except–
(a) to another disabled person on production of a valid import authorization issued by the
Ministry of Commerce on recommendation of the Federal Board of Disabled Persons;
(b) on payment of duty and taxes as were otherwise applicable at the time of import and
were exempted; and
(c) in case of death of the disabled person, the legal heirs can dispose of the vehicle, within
five years of import, only in the manner specified above.
2. In case of any violation of conditions of this notification, the importer shall be liable to pay the
exempted duties and taxes besides any penal action under the provisions of the Customs Act, 1969 (IV of
1969).
_______________

S.R.O. 391(I)/2010, Islamabad, the 5 th June , 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 567(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification,–
(a) in paragraph 2, in clause (d), for the expression "M/s. Pakistan PTA Ltd", the expression
"M/s Lotte Pakistan PTA Ltd" shall be substituted;
(b) in Table I, in column (1) against serial number 8, for column (5) the following shall be
substituted, namely:–
"If imported by M/s.Lottee Pakistan PTA Ltd, for the manufacture of Pure Terephthalic
Acid (PTA).”;
(c) in Table III,
(i) under heading A in column (1),–
(a) after S.No 10 and the corresponding entries relating thereto in columns (2), (3),
(4) and (5) the following new serial numbers and the entries relating thereto shall be
inserted, namely:–
“10A 2933.5990 Protacine (Proglumet, Dimaleate) 5%";
(b) after S.No 14 and the corresponding entries relating thereto in columns (2), (3),
(4) and (5) the following new serial number and the corresponding entries relating
thereto shall be inserted, namely:–
“14A 2935.0090 Celecoxib 5%”; and
 194

(c) after S.No 21, and the corresponding entries relating thereto in columns (2), (3),
(4) and (5) the following new serial number and the corresponding entries relating
thereto shall be inserted, namely:–
“22 3501.9000 Sodium Casinate 5%
23 3824.9099 Activated Glucuronate 5%”; and
(ii) under heading C, in column (1), against S.No. 19 in column (3) after entry (lxxiv) and the
corresponding entries relating thereto in columns (4) and (5) the following new entry shall
be inserted, namely:–
“(lxxv) Tasigna (Nilotinib) 5%”.
2. This Notification shall take effect from the 6th June, 2010.
_______________

S.R.O. 392(I)/2010, Islamabad, the 5th June, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 565(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in the TABLE, in column (1),–
(a) against S. No. 5, in column (3) under heading “Raw Materials” against item (5), in column
(5), for the figure “0%” the figure “5%” shall be substituted;
(b) against S. No. 6, in column (3), under heading “Sub-components and Components”
against item (14), for the words “Cable Control” the word and letters “Controller AC” shall be
substituted;
(c) against S. No. 9, in column (3),–
(i) the item (1) and corresponding entries relating thereto in columns (4), (5) and (6) shall
be omitted;
(ii) against items (8) and (9), for column (5), the following shall respectively be substituted,
namely:–
“5%”;
(iii)after item (13) and corresponding entry relating thereto in columns (4), (5) and (6) the
following shall be added, namely:–
“(14) Electro galvanized steel sheet 7210.3090”;
(d) against S. No. 73, in column (3), after item (3) and corresponding entry relating thereto
in columns (4), (5) and (6), the following shall be added, namely:–
“(4) Coconut Acid Oil 3823.1990”;
(e) against S. No. 83,–
(i) in column (2), after the letters and words “LCD Panel sets” the slash, letters and words “/
LED Panel sets” shall be inserted; and
(ii) in column (3), in entry (ii), after the letters and words “LCD Panel sets” the slash, words,
letters and bracket “/ Light Emitting Diode (LED) Panel sets” shall be inserted and thereafter
for the item (h) and corresponding entries relating thereto in columns (4), (5) and (6) the
following shall be substituted, namely:–
“(h) Plasma Display Panel (PDP) / Liquid Crystal Display (LCD) Panel /
Light Emitting Diode (LED) Panel.
Screw sets. 7318.1400 5% ad val”;
Speaker. 8518.2200
Front cabinet assy. 8529.9090
Filter for plasma 8529.9090
display or LCD panel
or LED panel
 195

Rear cover assy 8529.9090

Plasma display or LCD 8529.9090
or LED control unit
Plasma display 8529.9090
panel / LCD panel /
LED panel
Printed circuit board 8534.0000
AC cable accessories. 8544.4290
(f) against S. No. 132, in column (3), after item (11) and corresponding entries relating
thereto in column (4), the following shall be inserted, namely:–
“(12) Diode 8541.1000
(13) Transistor 8541.2900
(14) Resister 8533.1000
(15) Torridal 8505.1900
(16) Ferrite Core with Bobbin 8505.9000”;
(g) against S. No. 149, in column (3), after item (1) and corresponding entries relating thereto in columns (4) and
(5), the following shall be inserted, namely:–
Tin Mill Black Plate 7209.1810 15% ad val”;
(of secondary
quality)
(h) after S. No. 153 and the corresponding entries relating thereto in columns (1), (2), (3), (4), (5) and (6), the
following corresponding new S. Nos. and entries relating thereto shall be added, namely:–
Glass Raw Materials Nil.
Manufacturin
g
Sodium 2833.11 10%adval
sulphate
Leather and Raw Materials Nil.
Tanning
Industry
Shavings/ 8208.90 15% ad val
Fleshing /
Splitting Blades
Stamping Foil 3212.10
Detergent Raw Materials Nil”.
Industry
Sodium 2833.1100 10% ad val
sulph
ate
2. This Notification shall take effect from the 6th June, 2010.
_______________

S.R.O. 393(I)/2010, Islamabad, the 5th June, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), read with section 18C thereof, the Federal Government
is pleased to direct that the following amendment shall be made in its Notification No. S.R.O.
1261(I)/2007, dated the 31st December, 2007, namely:–
In the aforesaid Notification, in the Table-II, in column (1), against S. No. 1,–
(a) in column (6), after the letters “MT” the comma, words, letters, figures and slash “, but
Rs.6800/MT from 6th June,.2010 onwards” shall be inserted; and
 196

(b) in columns (7), (8), (9) and (10) for the figure “7650” the figure “6800” shall respectively
be substituted.
_______________

S.R.O. 394(I)/2010, Islamabad, the 5th June, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments
shall be made in its Notification No. S.R.O. 575(I)/2006, dated the 5 th June, 2006, namely:–
In the aforesaid Notification, in the Table,–
“(1) against S. No. 1 in column (1), in column (2),–
(i) under item (F), after serial No. (4), the following new serial number and the entry relating thereto in column
(3) shall be added, namely:–
“(5) Rice whitener, rice 8437.8000 and
polisher, rice flow meter respective headings”;
and magnetic separator. and
(ii) under item (G), after serial number No. (18), the following new serial and the entries
relating thereto in columns (3) and (4) shall be added, namely:–
“(19) Milk filters. 8421.3990 0%”;
(2) after S. No. 5 in column (1), the following new serial number and the entries relating thereto in columns (2),
(3), (4) and (5) shall be added, namely:–
“5A. LPG 8413.1100 5%
Only approved
Dispensers models or brands as
imported approved by Oil and
by a Gas Regulatory
company Authority (OGRA)
having LPG and notified by the
licence. Federal Board of
Revenue shall be
entitled to this
exemption. The
importer shall also
furnish quality
certificate of the
original
manufacturer duly
witnessed by the
designated third
party inspectors as
notified by the
authorized
government agency
regarding safety
standards as laid
down in LPG
(Production and
Distribution) Rules,
2001;
(3) against S. No. 28 in column (1), in column (2), after serial No. (8), the following new
serial number and the entries relating thereto in column (3) and (4) shall be added, namely:–
“(9) Road sweeping lorries. 8705.9000 5%”; and
(4) against S. No. 35 in column (1), in column (2),–
(i) in serial number No. (8), for the letters and word “PA Models” the letters and word “PV
Modules” shall be substituted;
 197

(ii) after serial No. 9, the following new serial numbers and the entries relating thereto in columns (3) and (4)
shall be added, namely:–
Pyranometers and 9030.8900 5%
accessories for solar data
collection.
Solar chargers for charging 8504.4020 5%
electronic devices.
Remote control for solar 8543.70105%”; and
charge controller.
(iii)after serial No. 10, the following new serial number and the entries relating thereto in
columns (3) and (4) shall be added, namely:-
“10A. Wind water pump. 8413.8190 5%”.
th
2. This notification shall take effect from the 6 June, 2010.”
_______________

S.R.O. 847(I)/2010, Islamabad, the 31st August, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 565(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in the Table, against Sr. No. 94 in column (1),–
(a) in column (3),–
(i) the letters and word “CKD kit” shall be omitted;
(ii) against entries (1) to (11), in column (5), the figure and word “0% ad val.” shall be added;
and
(iii)against entries (12) to (21), in column (5), the figure and word “10% ad val.” shall be
added; and
(b) in column (5), the figure and word “10% ad val.” shall be omitted.
_______________

st
S.R.O. 933(I)/2010, Islamabad, the 1 October, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O.567(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in Table-I,–
(a) after S.No.2 in column (1) and the netries relating thereto in columns (2), (3), (4) and
(5) , the following new serial number and the entries relating thereto shall be inserted, namely:–
1701.1100 Cane Sugar If imported by private sector
1701.1200 Beet Sugar If imported by private sector”;
and
(b) the existing S.No.2A in column (1) shall be re-numbered as S.No.2AA.
_______________

S.R.O. 687(I)/2010, Islamabad, the 27 th July, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No.S.R.O.567(I)/2006, dated the 5th
June, 2006, namely:–
In the aforesaid Notification,-
(1) in TABLE I,–
(i) against serial number 10 in column (1), in column (4) for the figure “7.5%” the
figure “3%” shall be substituted and in column (5) the existing entry shall be omitted; and
 198

(2) in TABLE II,–

(i) against serial numbers 1A in column (1), in column (4) for the figure “7.5%” the figure
“9%” shall be substituted;
(ii) serial numbers 55, 63, 64, 67, 70, 136,137,142, 143, 144, 145, 157 and 158 in column
(1), and corresponding entries relating thereto in columns (2), (3), (4) and (5) shall be omitted; and
(iii) against serial numbers 124 and 125 in column (1), in column (4) for the figure “4.5%”
the figure “6%” shall be substituted and in column (5) the existing entry shall be omitted.
2. This notification shall be deemed to have taken effect on and from the 1 st July, 2010.
_______________

th
S.R.O. 837(I)/2010, Islamabad, the 26 August, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No.S.R.O.567(I)/2006, dated the 5th
June, 2006, namely:–
In the aforesaid Notification, in TABLE II, serial number 58 in column (1) , and the
corresponding entries relating thereto in columns (2), (3), (4) and (5) shall be omitted.
2. This notification shall be deemed to have taken effect on and from the 1 st July, 2010.
_______________

th
S.R.O. 820(I)/2010, Islamabad, the 18 August, 2010.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales
Tax Act, 1990, and sub-section (2) of section 16 of the Federal Excise Act, 2005, the Federal Government
is pleased to direct that the goods and quantities mentioned in the Table below, manufactured by M/s.
H. Nizam Din & Sons (Private) Ltd., Karachi notified vide Notification No. S.R.O. 1058(I)/81, dated the 23 rd
September, 1981, and operating under Customs Export Processing Zones Rules, 1981, shall be exempted
from duty and taxes, on one time basis, if supplies to the international donor agencies or NGOs, for the
flood affectees and victims, for humanitarian purposes, subject to the following conditions, namely:–
(a) the supplies are made through National Disaster Management Authority and a
certificate issued by National Disaster management Authority to this effect is produced to the
concerned Collector of Customs for these goods;
(b) all the supplies shall be made against convertible foreign currency; and
(c) the supplies are made on the basis of f.o.b. prices.
TABLE
Sr. No. Description of Goods Quantity
1. Jerry cans collapsible 30,575 pieces
2. Plastic sheeting size 2 X 6M 6,000 pieces
3. Kitchen sets (family) 1,600 sets
4. Blankets (medium) 9,000 pieces
5. Shelters emergency kits 1,800 kits
_______________

th
S.R.O. 14(I)/2011, Islamabad, the 8 January, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that, in its
Notification No. S.R.O. 659(I)/2007, dated the 30 th June, 2007, the following amendments shall be made,
namely:–
In the aforesaid Notification, in Table-I, in column (1), for S. No. 3012, 3013, 3014, 3015, 3016
and 3017 and the entries relating thereto in columns (2), (3), (4), (5) (6), (7), (8) and (9) the following
shall be substituted, namely:–
“3012 72101110 --- Of 24.25 23.50 22.50 21.75 21.00 20.00
secondary
quality
3013 72101190 --- Other 24.25 23.50 22.50 21.75 21.00 20.00
 199

3014 72101210 --- Of 24.25 23.50 22.50 21.75 21.00 20.00

secondary
quality
3015 72101290 --- Other 24.25 23.50 22.50 21.75 21.00 20.00
3016 72102010 --- Of 19.40 18.80 18.00 17.40 16.80 16.00
secondary
quality
3017 72102090 --- Other 9.17 8.33 7.50 6.67 5.82 5.00”.
_______________

S.R.O. 86(I)/2011, Islamabad, the 03 rd February, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that, in its
Notification No. S.R.O. 659(I)/2007, dated the 30 th June, 2007, the following further amendment shall be
made and shall be deemed to have been so made on the 8 th January, 2011, namely:-
In the aforesaid Notification, in Table-I, against S. No. 3017 in column (1), in column (8), for the
figure “5.82”, the figure “5.83” shall be substituted.
_______________

S.R.O. 275(I)/2011, Islamabad, the 26 th March, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales
Tax Act, 1990, sections 148 and 53 read with the Second Schedule to the Income Tax Ordinance, 2001
(XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall
be made in its Notification No. S.R.O 577(I)/2005, dated the 6 th June, 2005, namely:–
In the aforesaid Notification, in paragraph 2, after the figure and symbol “50%”, the words, figure
and symbol “but 60% for cars” shall be inserted.
_______________

S.R.O. 448(I)/2011, Islamabad, the 21st May, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments
shall be made in its Notification No. S.R.O. 575(I)/2006, dated the 5 th June, 2006, namely:–
In the aforesaid Notification, in the preamble, after the figure “1990” occurring for the second
time, the comma, words, letters and figures “,provided that the sales tax exemption shall not apply to Sr.
No.21 and 23 of the said Table” shall be inserted.
_______________

S.R.O. 475(I)/2011, Islamabad, the 3 rd June, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 565(I)/2006, dated the 5 th June,
2006, namely:-
In the aforesaid Notification, in the TABLE, in column (1),–
(a) gainst S. No. 2, in column (6), under item “A”,–
(1) against entry (v), for the words “Rear panel bending machine” the words “Press
Machines” shall be substituted; and
(2) after entry (vi), the following new entries shall be added, namely:–
“(vii) Shearing machines
(viii) Tapping machines
(ix) Riveting machines
(x) Spot welding machines
(xi) Evaporator bending machine”;
(b) against S. No. 5, in column (3) under heading “Raw Materials”, the entry (1) and
corresponding entry relating thereto in column (4) shall be omitted;
 200

(c) against S. No. 9, in column (3), against entry (3), for the words and brackets “Copper
Coated Steel Tube (Bundy Tube) in Coils” the words, figure and letters “Copper Coated Steel
Tubes in Coils upto 8.5 mm dia” shall be substituted;
(d) against S. No. 15, against entry (4) in column (3), in column (4), after the figure
“8523.2920” the figure “8523.2990” shall be inserted;
(e) against S. No. 20, against entries (24) and (25) in column (3), in column (4), for the
figures “7210.1200” and “7210.5000” the figures “7210.1290” and “7210.5090” shall
respectively be substituted;
(f) against S. No. 32, in column (3), under heading “Sub-components and components”
against entry (2), in column (4), for the figure “7326.9010” the figure “7318.2900” shall be
substituted;
(g) against S. No. 83, in column (3), under entry (ii),-
(1) against item (a), against entries (3), (4), (5), (6), (7) and (8), in column (4), for the figure
“8516.5000” the figure “8516.9000” shall respectively be substituted; and
(2) against item (i), in entry (6) after the word “Cassette” the slash, letters and figures
“/CD/MP3/MP4” shall be inserted;
(h) against S. No. 88, in column (3), for the entries (2) and (3) and corresponding entries relating thereto in
column (4), the following shall be substituted, namely,–
(2) (a) HRC (prime quality) of a 7208.3790
thickness of 4.75 mm or more
but not exceeding 10 mm.
(b) HRC (prime quality) of a 7208.3890
thickness of 3 mm or more but
less than 4.75 mm.
(c) HRC (prime quality) of a 7208.3990
thickness of less than 3 mm.
(3) (a) CRC (prime quality) of a 7209.1690
thickness exceeding 1mm but
less than 3 mm.
(b) CRC (prime quality) of a 7209.1790”;
thickness of 0.5 mm or more
but not exceeding 1 mm.
(i) against S. No. 89, in column (4), after the figure “7213.9990” the figure “7227.9000”
shall be inserted;
(j) against S. No. 118, for the entries in columns (3) and (4), the following shall be substituted, namely,-
(1) Bearings 8482.2000
8482.4000
(2) Geared pump 8413.8110
(3) Valves 8481.3000
8481.4000
(4) Forced feed lubricator pump 8413.8190
(5) Pressure and temperature gauges 9026.2000
(6) Water flow switch 9026.1000
(7) Electric motor 8501.5290
8501.5310
(8) Junction box, Glands 8536.3000
(9) Oil filter assembly 8414.9090
(10) Flexible pressure hoses 4009.2190
 201

(11) Flexible water hoses (SS braided) 4009.1190

12) SS Tubes/ Pipes 7304.4100
7306.9000
13) Aluminum bars 6082, 7075, T-6 7604.2910
14) Connecting rods forged 8.5 Kg 8414.9090
(15) Pistons pins, Rods and Rings 8414.9090”;
(k) against S. No. 154, in column (3), after entry (1) and corresponding entries relating thereto in columns (4)
and (5), the following shall be added, namely.–
(2) Mirror backing paint 3208.1010 10% ad val
(3) Cullet and other waste/ 7001.0000 5% ad val”; and
scrap of glass
(l) after S. No. 156 and the corresponding entries relating thereto in columns (1), (2), (3), (4), (5) and (6), the
following new S. No. and corresponding entries relating thereto shall be added, namely.–
“(157) Butyl Sabutol Acetate 3814.0000 5% ad val Nil”.
2. This Notification shall take effect from the 4th June, 2011.
_______________

S.R.O. 476(I)/2011, Islamabad, the 3 rd June, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 567(I)/2006, dated the 5 th
June, 2006, namely:–
In the aforesaid Notification,–
(a) in Table-I, in serial number 4, in column (2), against PCT Heading “2923.9010” for the
word “Betain” in column (3), the word “Betaine” shall be substituted;
(b) in Table-III,–
(i) for heading “A” and the entries relating thereto in columns (1), (2), (3), (4) and (5) the
following shall be substituted.
“A. ACTIVE PHARMACEUTICAL INGREDIENTS
S No HS Code Description Rate of duty Condition
(1) (2) (3) (4) (5)
1 2916.3990 Flurbiprofen 5%
2 2918.2210 Aspirin 5%
3 2933.3990 Amlodipine 5%
5 2933.3990 Deferiprone 5%
6 2933.3990 Lamivudine 5%
7 2933.3990 Loratadine 5%
8 2933.3990 Pantoprazole 5%
Sodium (Injec
Grade)
9 2933.3990 Risedronate 5%
Sodium
10 2933.3990 Fexofenadine 5%
11 2933.3990 Ebastine 5%
12 2933.3990 Isoniazid 5%
13 2933.3990 Omeprazole Pellets 5%
14 2933.4990 Moxifloxacin 5%
 202

15 2933.5990 Protacine 5%]

(Proglumet,
Dimaleate)
16 2933.5990 Sparfloxacin 5%
17 2933.9990 Atorvastatin 5%
18 2933.9990 Amiloride HCL 5%
19 2933.9990 Candesartan 5%
Cilextle
20 2933.9990 Pheneramine 5%
Maleate
21 2934.1090 Pioglitazone HCL 5%
22 2935.0060 Sulphanilamide 5%
23 2935.0090 Gliclazide 5%
24 2935.0090 Piperazine 5%
Anhydrous
(Pharmaceutical
grade).
25 2935.0090 Celecoxib 5%]
26 2935.0090 Glibenclamide 5%
27 2935.0090 Thiocolchicoside 5%
28 2935.0090 Hydrochlorothiazid 5%
e
29 2936.9000 Alfacalcidole 5%
30 2941.1000 (i) Amoxicillin 5%
sodium sterile BP
(ii) Ampicillin
sodium sterile
USP/BP
(Pharmaceutical
grade)
(iii) Bacampicillin
HCL
(iv) Carbenicillin
and its salts
(v) Carfecillin

(vi) Cloxacillin and

its salts excluding
[sodium]
(compacted/
powder form for
oral use)
(vii) Flucloxacillin
sodium
(viii) Pencillin
V.Potassium
 203

(ix) Benzyl pencillin

sodium/potassium
(x) Cloxacillin
sodium sterile
USP/BP
(xi) Pencillin
benzathin
(xii) Procaine
pencillin
G.fortified,
sodium/potassium
(xiii) Sultamicillia
tosylate
(xiv) Sultamicillin
(Pharmaceutical
grade)
(xv) Ticarcilin
disodium
31 2941.5000 Clarithromycin 5%
Powder
32 2941.5000 Roxithromycin 5%
33 2941.5000 Clarithromycine 5%
Granules
34 2941.9090 Azithromyein 5%
35 2941.9090 Fusidic Acid 5%
36 2941.9090 Gentamyein 5%
37 2941.9090 Rifampicin 5%
38 2941.9090 Ceftriaxone 5%
39 2941.9090 Cefotaxime 5%
40 2941.9090 D-Cycloserine 5%
41 3005.9010 Acrinol Pad 5%
42 3005.9090 Benzalkonium 5%
Chloride Pad (BKC)
43 3501.9000 Sodium Casinate 5%
44 3824.9099 Activated 5%]
Glucuronate
45 3824.9099 Losartan Potassium 5%
46 3913.9090 Chondrotin 5%
Sulphate
47 3920.9900 Polyethylene Film 5% .”; and
(ii) under heading “C”, against Sr. No. 6 in column (1), after the PCT Heading “3002.2090” in
column (2), the following PCT Headings shall be added, namely:–
“3002.2010
3002.2020”;
2. This notification shall take effect from the 4th June, 2011.
_______________
 204

S.R.O. 477(I)/2011, Islamabad, the 3 rd June, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments
shall be made in its Notification No. S.R.O. 575(I)/2006, dated the 5 th June, 2006, namely:–
In the aforesaid Notification,–
(a) in the preamble, for the figures and words “21 and 23” the figures, commas and word
“1, 5, 21, 22, 23, 28, 28A, 29 and 36” shall be substituted;
(b) in the Table, in S. No. 8, in column (5), for the words “Ministry of Tourism”, wherever
occurring, the commas and words “,Tourism Departments of Provincial Governments, Gilgit-
Baltistan, FATA and Department of Tourist Services of the Capital Administration and
Development Division” shall be substituted and shall be deemed to have been so substituted
with effect from the 20th April, 2011.
2. This notification shall take effect from the 4th June, 2011.
_______________

S.R.O. 478(I)/2011, Islamabad, the 3 rd June, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 3 * of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments
shall be made in its Notification S.R.O. 678(I)/2004, dated the 7 th August, 2004, namely:–
In the aforesaid Notification, in clause (3), the words, letters, semicolon and commas “except X-
mass trees, well-head and integral components and parts thereof which shall be exempted from so
much of the customs-duty as is in excess of fifteen per cent ad valorem; imported by E&P Companies
their contractors, sub-contractors and service companies,” shall be omitted.
2. This notification shall take effect from the 4th June, 2011.
___________________________________________
* Apparently the intended section is “13”.
_______________

S.R.O. 645(I)/2011, Islamabad, the 24th June, 2011.– In exercise of the powers conferred by
clause (c) of section 4 of the Sales Tax Act, 1990, and section 19 of the Customs Act, 1969 (IV of 1969),
the Federal Government is pleased to direct that the following amendments shall be made in its
Notification No. S.R.O 811(I)/2009, dated the 19 th September, 2009, namely:–
In the aforesaid Notification,–
(i) in the preamble,–
(a) after the figure “1990”, the comma, words, figures and brackets, “and section 19 of the
Customs Act, 1969 (IV of 1969)” shall be inserted; and
(b) after the word “zero-rate”, occurring for the first time, the words “and exempt from
customs duty” shall be inserted;
(ii) in condition (v), for the words “statutory tax and concessionary taxes”, the words
“statutory and concessionary customs duty and sales tax” shall be substituted;
(iii) in condition (vii), for the words “sales tax”, occurring for the second time, the words
“amount of customs duty and sales tax” shall be substituted;
(iv) in condition (viii),–
(a) after the word “leviable”, the words “custom duty and” shall be inserted; and
(b) after the figure “1990”, the words, figures, comma and brackets “and the Customs Act,
1969 (IV of 1969)” shall be added;
(v) in FORM-I, in column (5), after the word “applicable”, the word “statutory” shall be
inserted; and
(vi) in FORM-II, in column (7), for the words “custom duty rate”, the words “statutory rate of
duty” shall be substituted.
_______________
 205

S.R.O. 646(I)/2011, Islamabad, the 25th June, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to remit whole
amount of penalties and surcharge under section 202A, payable by a person against whom an amount of
customs-duty is outstanding on account of any audit observation, audit report, demand notice or any
adjudication order or who has failed to pay any amount of customs-duty or claimed inadmissible refund
or drawback of customs-duty due to any reason, subject to the condition that the outstanding principal
amount of customs-duty is paid by the 30 th June, 2011.
2. Nothing in this Notification shall entitle any person to claim or take refund of any amount of
penalty or surcharge already, paid by or recovered from him before the issuance of this Notification.
3. In a case where refund becomes due to any person in consequence of a decision or judgment
at any stage after the issuance of this Notification the customs duty deposited by that person under this
Notification shall be refunded to him.
_______________

S.R.O. 664(I)/2011, Islamabad, the 29th June, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in the Notification S.R.O. No.646(1)12011 dated the 25 th
June, 2011, namely:–
In the aforesaid notification, after the word “penalties” the comma and word “, fine” shall be
inserted.
_______________

S.R.O. 667(I)/2011, Islamabad, the 29th June, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in the Notification S.R.O. No.646(I)/2011 dated 25 th June,
2011, namely:–
In the aforesaid notification, after the word “penalty”, occurring in para 2, the words “or fine”
shall be inserted.
_______________

S.R.O. 1121(I)/2011, Islamabad, the 28th December, 2011.– In exercise of the powers conferred
by section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O 565(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in the Table, in column (1) against S. No. 6, in column (3), after
entry (6), the following new entry and the corresponding entry thereto in column (4) shall be added,
namely:–
“(7) Aluminium Foil 7607.1990”.
_______________

S.R.O. 842(I)/2011, Islamabad, the 6th September, 2011.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendment
shall be made in its Notification S.R.O.575(I)/2006, dated the 5 th June, 2006, namely:–
In the aforesaid Notification, in the Table, in column (1), against S.No. 1, in column (2), under the
caption “(E) Harvesting and Threshing Machinery”, against sub-serial number (2), in column (3), for the
figure “8201.6000”, the words “Respective Headings” shall be substituted.
_______________

S.R.O. 1127(I)/2011, Islamabad, the 28th December, 2011.– In exercise of the powers conferred
by section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 567(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in the Table-III, under heading ‘C’, against S. No. 19, in column (3),
after serial number (lxxv), the following new entry and the corresponding entry relating thereto in
column (4) shall be inserted, namely:–
“(lxxvi) Temozolomide 0%”.
 206

_______________

S.R.O. 1128(I)/2011, Islamabad, the 28th December, 2011.– In exercise of the powers conferred
by section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 567(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in Table-III, under item ‘D’, in column (1) against S. No. 30, in
column (3), after entry ‘v’, the following new entry shall be inserted, namely:–
“(vi) Printed Aluminum Bag for I.V. Solutions/Infusion.”.
_______________

S.R.O. 80(I)/2012, Islamabad, the 31st January, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 1274(I)/2006, dated the 29 th
December, 2006, namely:–
In the aforesaid Notification, in the Table, in the heading of column (4), after the word
“from”, the word and comma “Afghanistan,” shall be inserted.
_______________

S.R.O. 376(I)/2012, Islamabad, the 16 th April, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 567(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in Table-III, under the heading “E”, in column (1),–
(a) against serial number 22, in column (3), after the word “Elisa”, the words “or Eclia” shall
be inserted; and
(b) against serial number 56, in column (3), after the word “Standard”, the words “or
calibrator” shall be inserted.
_______________

S.R.O. 573(I)/2012, Islamabad, the 1st June, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 565(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification,–
(1) in the conditions,–
(a) in condition (i),–
(i) in the beginning, for the letter and words “A sales tax registered”, the word “An”
shall be substituted;
(ii) after the word “facilities”, the words “and registered with the Sales Tax
Department as manufacturer” shall be inserted; and
(iii) for the words “Sales Tax and Federal Excise”, the word “Customs” shall be
substituted;
(b) in condition (ii),–
(i) for the words “Sales Tax and Federal Excise” the word “Customs” shall be
substituted; and
(ii) for the words “authorized person”, appearing first time, the words “person duly
authorized by him” shall be substituted;
(c) in condition (iv),–
(i) for the words “Sales Tax Collectorate”, the word “Collectorate of Customs having
jurisdiction” shall be substituted;
(ii) after the word “System”, the brackets and letters “(PACCS)” shall be omitted;
 207

(iii) after the word “In”, appearing first time, the words “already computerized” shall
be omitted;
(iv) for the letters “PACCS”, appearing second time, the words “Customs
Computerized System” shall be substituted; and
(v) after the word “information”, appearing second time, for the words and letters
“in the PACCS on daily basis and on weekly basis of the data obtained from the stations
which have not yet been computerized”, the words “obtained from the
Collectorates/Customs stations in Customs Computerized System on daily and weekly
basis” shall be substituted;
(d) in condition (v), the words “tax” and “taxes”, shall be preceded by word and slash “duty”
/ and “duties” /, respectively;
(e) in condition (vii),–
(i) after the word “concerned”, the words “Collector of Sales Tax and” shall be
omitted; and
(ii) after the words “extension from the”, the words “Collector of Sales Tax and
Federal Excise under intimation to” shall be omitted and then after the word “Customs”,
the words “of the import Collectorate” shall be inserted;
(f) in condition (viii),–
(i) after the word “Customs”, appearing first time the words “of the import
Collectorate” shall be inserted;
(ii) after the word “may”, the commas and words “, on its own or through the
Collector of Sales Tax and Federal Excise or through any other department working
under Revenue Division,” shall be omitted; and
(iii) after the word “Collector”, appearing for last time the words “of the import
Collectorate” shall be inserted;
(g) in condition (ix), after the word “facility”, the words “subject to approval of the Collector
of Customs” shall be inserted; and
(h) after condition (x), in the proviso, after the word “plastics”, the brackets and words
“(excluding specified in the Table below)” shall be inserted;
(2) In the Table, in column (1),-
(a) against S. No. 4, under heading “Sub-components and Components” in column (3), in
entry (5), for the words and slash “Roll bond type/Fin type”, the words and slash “Roll
bond/Fin/Tube on plate types” shall be substituted;
(b) against S. No. 6, under heading “Sub-components and Components” in column (3),
entries (29), (33), (34), (35) and (37) and the corresponding entries relating thereto in
columns (4) and (5) shall be omitted;
(c) against S. No. 13, in column (3),–
(i) against heading “Raw Materials”, in column (5), for the figure “5”, the figure “0”
shall be substituted; and
(ii) under heading “Raw Materials”, against entry (8), in column (4), for the figure
“3906.9080”, the figure “3906.9090” shall be substituted; and
(iii) against heading “Parts and Components”, in column (5), for the figure “10”, the
figure “5” shall be substituted;
(d) against S. No. 46, against entry (18) in column (3), in column (4), for the figure
“5603.0000”, the figure “56.03” shall be substituted;
(e) against S. No. 53, in column (3), under item (ii),–
(i) against entry (7), in column (4), for the figure “2903.3940”, the figure
“2903.3960” shall be substituted;
(ii) against entry (8), in column (4), for the figure “2903.6900”, the figure
“2903.9900” shall be substituted;
 208

(iii) against entry (32), in column (4), for the figure “2924.2930”, the figure
“2924.2950” shall be substituted; and
(iv) against entry (33), in column (4), for the figure “2924.2930”, the figure
“2924.2950” shall be substituted;
(f) against S. No. 54, against entry (19) in column (3), in column (4), for the figure
“3906.9080”, the figure “3906.9090” shall be substituted;
(g) against S. No. 60, against entry (8) in column (3), in column (4), for the figure
“8421.2990”, the figure “8421.2900” shall be substituted;
(h) against S. No. 72, against entry (4) in column (3), in column (4), for the figure
“3402.0000”, the figure “34.02” shall be substituted;
(i) against S. No. 83, in column (3), under entry (ii),-
(i) in item (a), entries (3), (4), (5), (6), (7), (8), (9), (11) and (12) and corresponding
entries relating thereto in columns (4) and (5) shall be omitted;
(ii) in item (b), entry (4) and corresponding entry relating thereto in columns (4) and
(5) shall be omitted;
(iii) in item (c), entry (4) and corresponding entry relating thereto in columns (4) and
(5) shall be omitted;
(iv) in item (d), entries (4), (5), (6) (7), (8), (9), (10) and (11) and corresponding
entries relating thereto in columns (4) and (5) shall be omitted;
(v) in item (e), entry (4) and corresponding entry relating thereto in columns (4) and
(5) shall be omitted;
(vi) in item (f), entries (4), (5), (6) (7), (8), (9) and (10) and corresponding entries
relating thereto in columns (4) and (5) shall be omitted;
(vii) in item (g), entries (3), (4), (5), (6), (7) and (8) and corresponding entries relating
thereto in columns (4) and (5) shall be omitted; and
(viii) in item (i), entry (1) and corresponding entry relating thereto in columns (4) and
(5) shall be omitted;
(j) against S. No. 84, in column (3),–
(i) in item (B), entry (5) and corresponding entries relating thereto in columns (4)
and (5) shall be omitted; and
(ii) in item (C), entry (6) and corresponding entries relating thereto in columns (4)
and (5) shall be omitted;
(k) against S. No. 85, in column (3), entry (7) and corresponding entry relating thereto in
columns (4) and (5) shall be omitted;
(l) against S. No. 88, in column (3), in entry (2), after item (c), the following new item and
corresponding entry relating thereto in column (4) shall be added, namely,-
“(d) HRC (Prime Quality) of a thickness 7208.3690”; and
exceeding 10 mm
(m) against S. No. 97, against entry (16) in column (3), in column (4), the figure “3906.9090”
shall be inserted;
(n) against S. No. 98, in column (3),–
(i) against entry (1), in column (4), for the figure “3208.1020”, the figure
“3208.1010” shall be substituted and thereafter the figure “3208.9010” shall be omitted;
and
(ii) entry (4) and corresponding entries relating thereto in columns (4) and (5) shall
be omitted;
(o) against S. No. 113, in column (3),–
(i) against entry (1), in column (4), for the figure “3919.9010”, the figure
“3920.4910” shall be substituted;
 209

(ii) against entries (2) and (3), in column (4), for the figures “3919.9010” and
“3919.9010”, the figures “3920.4990” and “3920.4990” shall be substituted,
respectively; and
(iii) against entries (13) and (14), in column (4), for the figures “3919.9090” and
“3919.9090”, the figures “3920.6200” and “3920.6200” shall be substituted,
respectively;
(p) against S. No. 114, against entry (9) in column (3), in column (4), for the figure
“3809.9100”, the figure “3809.9190” shall be substituted;
(q) against S. No. 118, against entry (6) in column (3), in column (4), for the figure
“9026.1000”, the figure “9026.9000” shall be substituted;
(r) against S. No. 129, against entry (1) in column (3), in column (4), for the figure
“2710.1190”, the figure “2710.1290” shall be substituted;
(s) against S. No. 130, against entry (1) in column (3), in column (4), for the figure
“2710.1150”, the figure “2710.1250” shall be substituted; and
(t) against S. No. 133, in column (3), entry (2) and corresponding entry relating thereto in
column (4) shall be omitted.
(3) after the Table, in Form-II, in the heading, for the words “Sales Tax”, the word “Customs”
shall be substituted; and
(4) in the “Note”, given at the end, the brackets and letters “(PACCS)” shall be omitted.
2. This notification shall take effect from the 2nd day of June, 2012.
_______________

st
S.R.O. 574(I)/2012, Islamabad, the 1 June, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 567(I)/2006, dated the 5 th
June, 2006, namely:–
In the aforesaid Notification,–
(a) in paragraph 2,–
(i) the brackets and letters “PACCS” shall be omitted; and
(ii) in clause (a), for the expression “Ministry of Health”, the expression “Drug Regulatory
Agency of Pakistan” shall be substituted;
(b) in paragraphs 3 and 4, for the letters “PACCS”, wherever occurring, the expression
“Customs Computerized System” shall be substituted;
(c) in Table I, in column (1),–
(i) against serial number 2A, in column (2), for the PCT heading “1701.1100” the PCT
headings “1701.1300” and “1701.1400” shall be substituted;
(ii) against serial number 4A, for the PCT heading “2909.9020” in column (2) the PCT
heading “2309.9020” shall be substituted;
(iii) after serial number 23 and the entries relating thereto in columns (2), (3), (4) and (5),
the following new serial number and entries relating thereto shall be inserted, namely:–
“23A 4004.0020 Shredded tyre 10% If imported by
scrap cement
manufacturers”;
(iv) against serial number 30, in column (2), the PCT headings “8528.3090” and “8523.6990”
shall be omitted;
(v) against serial number 34, in column (5), after the word “airlines” the expression
“registered in Pakistan” shall be inserted;
(vi) against serial number 36, in column (5), for the word “Nil” the following shall be
substituted, namely:–
 210

“This concession shall be available only to those ambulances which have following
features/specifications:
i. Rear Panel and Rear Step
ii. Stretcher of 8 ft length minimum in case of hiace type vehicles and 6 ft in case of
mini-van type vehicles.
iii. Folding Seats for 2-4 persons
iv. Oxygen Supply system with Cylinder
v. Rotary Lamp and Siren
vi. Fire Extinguisher
vii. Hooks for Intravenous Infusion Giving Sets / Bottles
viii. Small Cabinet for Medicines.
ix. Nebulizer, Room Light, Examination Light, Wiring Switch Sockets 12Volt
x. Water Resistant Floor
xi. Suction Unit
xii. Suspension system of base vehicle to be spring and shock absorber type and not
exclusively of leaf spring type.
xiii. Permanent markings as ambulance on the front and rear of the vehicle
(vii) against serial number 39, for the PCT heading “87.01” in column (2) the PCT heading “
87.11” shall be substituted; and
(viii) after serial number 44 and the entries relating thereto in columns (2), (3), (4) and (5) the
following new serial number and entries relating thereto shall be inserted, namely:–
“44A 3215.1190 Black Ink 10% If imported by
3215.1990 Colour Ink 10% Printing
Industry.”;
3701.3020 CTP Plates 5%
4802.5700 Fully sensitized cheque paper 10%
weighing 40 g/m2 or more but not
more than 150 g/m2
9612.1010 Red bleed through ribbons for dot 10%
matrix printers
3215.1990 Anti-forgery security printing ink 10%
(d) in Table III,–
(i) In the preamble, for the expression “MINISTRY OF HEALTH” the expression “Drug
Regulatory Agency of Pakistan” shall be substituted;
(ii) under the heading “A”, after serial number 47 in column (1) and the entries relating
thereto in columns (2), (3) and (4), the following new serial number and entries relating
thereto shall be added, namely:–
48 Respective Acid Hypophosphosous 5%
headings
Acid Pipmidc Trydae 5%
Acid Citric Anhydrous 5%
Propylparaben (Aseptoform-P) 5%
Methylparaben *Aseptoform-M) 5%
Carbinoxamine Maleate 5%
Euflavine Bp (Acriflavine) 5%
Vancomycin Hcl 5%
Dextro-Methorph Hbr 5%
 211

Acyclovir Usp 5%
___________________________________________
* Apparently the opening bracket missing.
Sodium Benzoate 5%
Sodium Sulfate 5%
Cupric Chloride 5%
Enoxacin Sesquihfrtae 5%
Mama Copolymer 5%
Sodium Valproate 5%
Sodium Cyclamate 5%
Magnesium Hydroxide Paste 5%
Diphenhydramine 5%
Alprazolam 5%
Bacitracin Usp Powder Microniz 5%
Chloromycetin Palmitate 5%
Chlorpheniramine Maleate 5%
Esmomeprazole Magnesium Ec 5%
Fluconazole 5%
Glipizide 5%
Neomycin Sulphate 5%
Polymyxin B Sulphate USP Micro 5%
Lorazepam 5%
Nystatin Usp Powder 5%
Ferric Pyrophosphate Nf 5%
Alprazolam 5%
Pyritinol Base Fine Powder 5%
Pyritinol Di-Hcl Mono Hydrate 5%
Bisacodyl 5%
Sodium Picosulphate 5%
Carbamazepine 5%
Co-Dergocrine Ms (Gram) A 01 5%
Clemastine Hydrogen Fumarate 5%
Calcium Lactobionate Oral 5%
Clamipramine Hcl Ep 5%
Imipramine Hydrochlor/Ds 01 5%
Oxcarbazepine Fine/Ds 05 5%
Calcium Lactobionate Special Grade 5%
Temazepam Usp 28/Ep 4th Ed 5%
Levocetirizine Dihydrochloride 5%
Bromocriptine Ms(G) Msa/Ds 01 5%
Pindolol Base/Ds Pur 5%
Clopamide Base/Ds 01 5%
Pindolol Base 5%
 212

Nimesulide 5%
Enalapril Maleate Usp 23 5%
Cetirizin Dihydrocholoride Ep 5%
Famotidine 5%
Fluoxetine Hcl 5%
Doxycycline Hydrochloride Bp 5%
Captopril 5%
Simvastatin Ep 5%
Cefaclor Monohydrate 5%
Lactulose 5%
Albendazole - Human Grade 5%
Clobetasol Propionate 5%
Betamethasone Base 5%
Betamethasone 17-Valerate 5%
Bacitracin Zinc Bp (69 Mcg/Mg) 5%
Hydrcortisone Acetate Micronised 5%
Hydrocortisone Usp Micro 5%
Clotrimazole 5%
Clindamycin Phosphate 5%
Cetirizine Dihydrochloride 5%
Fluconazole 5%
Minocycline Hydrochloride 5%
Neomycin Sulph Bp 700 U/Mg Mic 5%
Nystatin (Mycostatin Micropul) 5%
Triprolidine Hcl B.P (94%) 5%
Ciprofloxacin Hcl 95% 5%
Ferrous Sulphate 5%
Polymyxin B Sulph Bp 8000 U/Mg 5%
Procyclidine Hcl 5%
Mupirocin 5%
Artemether 5%
Lumefantrine 5%
Desmoder H/Hexamethylen Di-Iso 5%
Erythrocin J 5%
Furosemide (Imp) 5%
Glimepiride Granules 0.606% (W/W (1 Mg) 5%
Ketoprofen 5%
(iii) under the heading “D”, after serial number 21 in column (1) and the entries relating
thereto in columns (2), (3) and (4), the following new serial number and entries relating thereto shall be
inserted, namely:–
“21A 4822.9000 Paper Core for Surgical Tape 5%”.
(Pharmaceutical Grade)
2. This Notification shall take effect from the 2nd June, 2012.
_______________
 213

S.R.O. 575(I)/2012, Islamabad, the 1st June, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 575(I)/2006, dated the 5 th
June, 2006, namely:–
In the aforesaid Notification,–
(a) in condition (ii),–
(i) the brackets and letters “(PACCS)” appearing first time, shall be omitted;
(ii) for the letters “PACCS”, appearing second time, the words “Pakistan Customs
Computerized System” shall be substituted; and
(iii) for the letters “PACCS”, appearing third time, the words “Pakistan Customs
Computerized System” shall be substituted;
(b) in the Table, in column (5), the brackets and letters “(PACCS)” wherever appearing shall
be deleted;
(c) against S. No. 35A, in column (2), against entry (6), for the word “alongwith” the words
and commas “,with or without,” shall be substituted;
(d) in Annex-A, in the NOTE, at the end, the brackets and letters “(PACCS)” shall be omitted;
and
(e) in Annex-B, in the NOTE, at the end, the brackets and letters “(PACCS)” shall be omitted”.
2. This notification shall take effect from the 2nd June, 2012.
_______________

S.R.O. 587(I)/2012, Islamabad, the 1st June, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 894(I)/2006, dated the 31 st
August, 2006, namely:–
In the aforesaid Notification, in the Table, in column (1),–
(i) against S. No. 1, in column (2), for the figure “0306.1300” the figures “0306.1600” and
“0306.1700” shall be substituted;
(ii) against S. No. 3, in column (2), for the figure “0407.0010” the figures “0407.1100” and
“0407.1900” shall be substituted;
(iii) against S. No. 4, in column (2), for the figure “0407.0090” the figures “0407.2100” and
“0407.2900” shall be substituted;
(iv) against S. No. 23, in column (2), for the figure “0713.9040” the figure “0713.9020” shall
be substituted;
(v) against S. No. 24, in column (2), for the figure “0713.9050” the figure “0713.9030” shall
be substituted; and
(vi) against S. No. 106, in column (2), for the figure “1704.9020” the figure “1704.9090” shall
be substituted.
2. This notification shall take effect from the 2nd day of June, 2012.
_______________

S.R.O. 591(I)/2012, Islamabad, the 1st June, 2012.– In exercise of the powers conferred by clause
(c) of section 4 of the Sales Tax Act, 1990 and section 19 of the Customs Act, 1969 (IV of 1969), the
Federal Government is pleased to direct that the following further amendment shall be made in its
Notification No. S.R.O. 811(I)/2009, dated the 19 th September, 2009, namely:–
In the aforesaid Notification, in the preamble,–
(i) for the expression “clause (c) of section 4” the expression “clause (a) of sub-section (2)
of section 13” shall be substituted;
(ii) after the word “to” for the expression “zero-rate” the words “exempt from sales tax”
shall be substituted; and
 214

(iii) for the expression “and supplies net cloth to green house farming at zero-rate” the
words “and who makes exempt supplies of net cloth to green house farming” shall be
substituted.
2. This Notification shall take effect on and from the 2nd day of June, 2012.
_______________

nd
S.R.O. 607(I)/2012, Islamabad, the 2 June, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales
Tax Act, 1990 and sections 53 and 148 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal
Government is pleased to exempt Hybrid Electric Vehicles (HEV) falling under PCT Code 87.03, on import
from so much of the customs duty, sales tax and withholding tax, as are in excess of 75% of the
applicable rates thereof.
2. Depreciation in the duties and taxes, in case of old and used HEVs, shall be admissible at the
rate of 2% per month subject to a maximum of 60%.
_______________

S.R.O. 761(I)/2012, Islamabad, the 21 st June, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to remit whole
amount of penalties, fine and surcharge under section 202A, payable by a person against whom an
amount of customs-duty is outstanding on account of any audit observation, audit report, demand
notice or any adjudication order or who has failed to pay any amount of customs-duty or claimed
inadmissible refund or drawback of customs-duty due to any reason, subject to the condition that the
outstanding principal amount of customs-duty is paid by the 30 th June, 2012.
2. Nothing in this notification shall entitle any person to claim or take refund of any amount of
penalty or fine or surcharge already paid by or recovered from him before the issuance of this
notification.
3. In a case where refund becomes due to any persons in consequence of a decision or judgment
at a later stage after the issuance of this Notificaiton, the customs-duty deposited by that person under
this notification shall be refunded to him.
_______________

S.R.O. 767(I)/2012, Islamabad, the 22 nd June, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O 565(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in the Table, against S. No. 149 in column (1), against entry (2) in
column (3), in column (5), for the figure “15”, the figure “10” shall be substituted.
_______________

S.R.O. 1097(I)/2012, Islamabad, the 31 st August, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969) and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following amendments shall be
made in its Notification No. S.R.O. 41(I)/2009, dated the 19 th January, 2009, namely:–
In the aforesaid Notification,-
(a) in the preamble,-
(i) the words and commas “, if not manufactured locally,” shall be omitted; and
(ii) the words “projects in the” shall be omitted;
(b) in condition (v),-
(i) the brackets and letters “(PaCCS)” appearing for the first time, shall be omitted; and
(ii) for the letters “PaCCS”, occurring for the second and third time, the words “Pakistan
Customs Computerized System” shall be substituted; and
(c) in Annex-A, in the NOTE, the brackets and letters “(PaCCS)” shall be omitted.
_______________
 215

S.R.O. 1098(I)/2012, Islamabad, the 31 st August, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969) and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following amendments shall be
made in its Notification No. S.R.O. 42(I)/2009, dated the 19 th January, 2009, namely:–
In the aforesaid Notification, in condition (c),-
(i) the brackets and letters “(PaCCS)” occurring for the first time, shall be omitted;
(ii) for the letters “PaCCS”, occurring for the second and third time, the words “Pakistan
Customs Computerized System” shall be substituted;
(iii) in Annex-A, in the NOTE, the brackets and letters “(PaCCS)” shall be omitted.
_______________

S.R.O. 1187(I)/2012, Islamabad, the 25 th September, 2012.– In exercise of the powers conferred
by section 19 of the Customs Act, 1969 (IV of 1969) and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments
shall be made in its Notification NO. S.R.O. 575(I)/2006, dated the 5 th June, 2006, namely:–
In the aforesaid Notification,–
(i) in the preamble, after the figure “5” a comma and the figure “,5A” shall be inserted; and
(ii) in the Table, after S.No. 5 in column (1) and the entries relating thereto in columns (2), (3), (4) and (5), the
following new S. No. 5A and the entries relating thereto shall be inserted, namely:–
“5 Following items 10% Only approved
A imported by the models or brands
companies having as approved by Oil
LPG licence:– and Gas
Regulatory
Authority (OGRA)
and notified by
the Federal Board
of Revenue shall
be entitled to this
exemption. The
importer shall also
furnish quality
certificate of the
original
manufacturer duly
witnessed by the
designated third
party inspectors
as notified by the
authorized
government
agency regarding
safety standards
as laid down in
LPG (Production
and Distribution)
Rules, 2011;
(1) LPG pumps 8413.199 –do–
0
(2) Control panels 8537.109 –do–
0
8537.200
0
(3) LPG Dispensers 8413.110 –do–
 216

0
(4) LPG vehicle 8409.919 –do–”
conversion kits. 9
_______________

S.R.O. 1187(I)/2012, Islamabad, the 25 th September, 2012.– In exercise of the powers conferred
by section 19 of the Customs Act, 1969 (IV of 1969) and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments
shall be made in its Notification NO. S.R.O. 575(I)/2006, dated the 5 th June, 2006, namely:–
In the aforesaid Notification,–
(i) in the preamble, after the figure “5” a comma and the figure “,5A” shall be inserted; and
(ii) in the Table, after S.No. 5 in column (1) and the entries relating thereto in columns (2), (3), (4) and (5), the
following new S. No. 5A and the entries relating thereto shall be inserted, namely:–
“5 Following items 10% Only approved
A imported by the models or brands
companies having as approved by Oil
LPG licence:– and Gas
Regulatory
Authority (OGRA)
and notified by
the Federal Board
of Revenue shall
be entitled to this
exemption. The
importer shall also
furnish quality
certificate of the
original
manufacturer duly
witnessed by the
designated third
party inspectors
as notified by the
authorized
government
agency regarding
safety standards
as laid down in
LPG (Production
and Distribution)
Rules, 2011;
(1) LPG pumps 8413.199 –do–
0
(2) Control panels 8537.109 –do–
0
8537.200
0
(3) LPG Dispensers 8413.110 –do–
0
(4) LPG vehicle 8409.919 –do–”
conversion kits. 9
_______________

S.R.O. 1358(I)/2012, Islamabad, the 5th November, 2012.– In exercise of the powers conferred
by section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
 217

following amendments shall be made in its Notification No. S.R.O. 567(I)/2006, dated the 5 th June, 2006,
namely:–
In the aforesaid Notification,–
(a) in paragraph 2, in clause (c), after the word “Mill”, the words “or their contractors” shall
be inserted; and
(b) in Table-I, against S.No.5 in column (1), in column (5), after the word “Mills”, the words
“or their contractors” shall be added.
_______________

S.R.O. 1366(I)/2012, Islamabad, the 8th November, 2012.– In exercise of the powers conferred
by section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, sub-section (2) of section 16 of the Federal Excise At, 2005, and clause 56 of Part-IV
of the Second Schedule to the Income Tax Ordinance, 2001, the Federal Government is pleased to direct
that the following amendment shall be made in its Notification No. S.R.O. 326(I)/2008, dated the 29 th
March, 2008, namely:–
In the aforesaid Notification,–
(a) in the heading, after the word “EXCISE”, the slash and words “/INCOME TAX” shall be
added; and
(b) in the preamble,–
(i) after the figure and comma “1990,” the word “and” shall be omitted;
(ii) after the figure and comma “2005,” the words figures and commas “and clause 56 of
Part-IV of the Second Schedule to the Income Tax Ordinance, 2001,” shall be inserted;
and
(iii) after the word “duty”, the words “and income tax” shall be inserted.
_______________

S.R.O. 1401(I)/2012, Islamabad, the 30th November, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 655(I)/2006, dated the 22 nd
June, 2006, namely:–
In the aforesaid Notification, in the Table 1, against serial No. 7 in column (1),–
(a) in column (5), after the figure “20%” the words and figure “but
15% for motorcycles for a period of one year” shall be inserted;
and
(b) in column (6), after the figure “10%” the words and figure “but
7.5% for motorcycles for a period of one year” shall be inserted.
_______________

S.R.O. 1402(I)/2012, Islamabad, the 30th November, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 656(I)/2006, dated the 22 nd
June, 2006, namely:–
In the aforesaid Notification, in the Table, against serial No. 11 in column (1), against item (i) in
column (3), in column (4), after the figure “15%” the words and figure “but 10% for motorcycles for a
period of one year” shall be inserted.
_______________

S.R.O. 1404(I)/2012, Islamabad, the 30th November, 2012.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to exempt so much
customs-duty, leviable in the First Schedule to the said Act, on import of CBU motorcycles and
components thereof for assembly or manufacture of motorcycles in any kit form, classified under
Pakistan Customs Tariff heading 87.11, as are in excess of 57.5%, for a period of one year.
 218

_______________
 219

S.R.O. 1471(I)/2012, Islamabad, the 13th December, 2012.– In exercise of the powers conferred
by section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, sections 53 and 148 of the Income Tax Ordinance, 2011 * read with Second Schedule
thereof and sub-section 91) of section 7 of the Finance Act, 1989 (V of 1989), the Federal Government is
pleased to direct that the following further amendments shall be made in its Notification No. S.R.O.
682(I)/2006, dated the 29th June, 2006, namely:–
In the aforesaid Notification, in the TABLE, in column (1) against S.No. 193, in column (3)-
(a) for entries (xlix), (l), (li) and (lii) and corresponding entries relating thereto in columns (3), (4) and (5) the
following shall be substituted, namely:–
“(xlix) 23” Plasma Philips China Unit 259.00
(l) 26” Plasma Sony Malaysia Unit 120.31
(li) 32” Plasma Sony Malaysia Unit 153.13
(lii) 32” Plasma Sony Japan Unit 153.13”
(b) after entry (lii), substituted as aforesaid, the following new entries and corresponding entries relating
thereto in columns (3), (4) and (5) shall be added, namely:–
“(liiA) 32” Plasma JVC Japan Unit 218.75
(liiB) 32” Plasma AKAI Japan Unit 196.88
(liiC) 32” Plasma JVC Thailand Unit 218.75
(liiD) 37” Plasma JVC Japan Unit 249.38
(liiE) 40” Plasma Bravia Malaysia Unit 350.00
(liiF) 40” Plasma Sony Malaysia Unit 240.63
(liiG) 40” Plasma Sony Japan Unit 240.63
(liiH) 40” Plasma UAE Unit 479.59
LA4ORS
(liiI) 50” Plasma Sony Malaysia Unit 609.00
Projector
(liiJ) 50” Plasma Hitachi China Unit 420.00
Projector
(liiK) 50” Plasma Flat USA Unit 1071.88
Panel
(liiL) 60” Plasma Sony Malaysia Unit 726.25
Projector
(liiM) 60” Plasma Hitachi China Unit 552.56”.
Projector
_______________

S.R.O. 120(I)/2013, Islamabad, the 19 th February, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 565(I)/2006, dated the 5 th
June, 2006, namely:–
In the aforesaid Notification, in the Table, in column (1), against Sr. No. 83, in column (3),–
(a) against entry (ii), in column (6), entry (i) shall be omitted; and
(b) in entry (ii), after item (h) and entries relating thereto in columns (4) and (5), the following item and entries
relating thereto shall be added, namely:–

*
Should have been “2001”.
 220

“(hi) Plasma Display Panel (PDP)/Liquid

Crystal Display (LCD) Panel/Light
Emitting Diode (LED) Panel
(1) Screw sets 7318.1400 5% ad
val”.
(2) Speaker 8518.2120
(3) Adopter/power supply 8544.4290
(4) Rear cover assy 8529.9090
(5) Plasma display or LCD or LED control 8529.9090
unit
(6) Compact panel PDP/LCD/LED 8529.9090
(7) Printer circuit board 8534.0000
(8) Connecting cables/accessories 8544.4290
_______________

S.R.O. 131(I)/2013, Islamabad, the 21 st February, 2013.– In exercise of the powers conferred by
section 19 of the Customs act, 1969 (1v of 1969), and clause (a) of the Sales Tax Act, 1990, the Federal
Government is pleased to direct that the following further amendments shall be made in its Notification
No. S R O 575(1)/2006, dated the 5th June, 2006, namely:
In the aforesaid Notification, in the table, in column (1), against Sr. No. 35-A, in column (2),–
(a) in column (2), for the caption, the following new caption, the following new caption shall
be substituted, namely;
“Following items for promotion of renewable energy technologies:–”; and
(b) against sub-serial (6), in column (5), the following condition shall be added, namely;
“Subject to certification by AEDB that the inverters, charge controllers and batteries being
imported are in quantities which commensurate with the PV modules being imported.”.
_______________

S.R.O. 152(I)/2013, Islamabad, the 28 th February, 2013.– In exercise of the powers conferred by
clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990, and section 19 of the Customs Act,
1969 (IV of 1969), the Federal Government is pleased to direct the following further amendments shall
be made in its Notification No. S.R.O. 811(I)/2009, dated the 19 th September, 2009, namely:-
In the aforesaid Notification,–
(a) in the preamble, the following expressions shall be omitted, namely:–

(i) “clause (a) of sub-section (2) of section13 of the Sales Tax Act, 1990 and”,
(ii) “exempt from sales tax and”; and
(iii) “exempt”;
(b) for the acronym word “PACCS”, wherever occurring, the acronym “WeBOC” shall be
substituted;

(d) in clause (v), the words “and sales tax” shall be omitted;

(e) in clause (vii), the words “and sales tax” shall be omitted; and

(f) in clause (viii),-

(i) the words “and sales tax” shall be omitted; and

 221

(ii) the words “comma and figure “the Sales Tax Act, 1990 and” shall be omitted.
_______________

st
S.R.O. 164(I)/2013, Islamabad, the 1 March, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 565(I)/2006, dated the 5 th June,
2006, namely:–
In the aforesaid Notification, in the Table, in columns (1), against S. No.54, in column (3), entry
(7) and the corresponding entry relating thereto in column (4) shall be omitted.
_______________

S.R.O. 170(I)/2013, Islamabad, the 4th March, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 567(I)/2006, dated the 5 th
June, 2006, namely:–
In the aforesaid Notification, in the Table II,–
a) against S.No. 1A in column (1), in column (4), for the figure “9%” the figure “8%” shall be
substituted; and
b) after S.No. 1A in column (1), amended as aforesaid, the following new S.No. and entries relating thereto in
columns (2), (3), (4) and (5), shall be inserted, namely:–
“1B. 3907.6090 Poly(ethylene 8% If imported by
Terephthalate) film BOPET film
grade manufacturers.
_______________

S.R.O. 222(I)/2013, Islamabad, the 15 th March, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969) and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments
shall be made in its Notification No. S.R.O. 575(I)/2006, dated the 5 th June, 2006, namely:–
In the aforesaid Notification, in the Table, in column (1), after S.No.10 and the entries relating
thereto in columns (2), (3), (4) and (5), the following new S. No. 10A and the entries relating thereto shall
be inserted, namely:–
“10A Coal mining Respective 0% This concession shall be
. machinery, Headings available to those
equipment, spares Mining Companies or
including vehicles their authorized
for site use i.e operators or
single or double contractors who hold
cabin pick-ups permits, licences,
imported for Thar leases and who enter
Coal Field. into agreements with
the Government of
Pakistan or a Provincial
Government.
The goods shall not be
sold or otherwise
disposed of without
prior approval of the
Board and the
payment of customs
duties and taxes
leviable at the time of
import. These shall,
however, be allowed to
be transferred to other
entitled mining
 222

companies with prior

approval of the Board.
_______________

S.R.O. (I)/2013, Islamabad, the 2nd April, 2013.– In exercise of the powers conferred by section
19 and 181 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales
Tax Act, 1990 and sub-section (1) of section 53 and section 148 read with the Second Schedule to the
Income Tax Ordinance, 2001 (XLIX of 2001) and in exception to clause (a) of Notification No. S.R.O.
499(I)/2009, dated the 13th June, 2009, the Federal Government is pleased to direct that the following
further amendment shall be made in its Notification No. S.R.O. 172(I)/2013, dated the 5 th March,
namely:–
In the aforesaid Notification, for the figure and word “31 st March”, wherever occurring, the figure
and word “6th April” shall be substituted.
_______________

rd
S.R.O. 276(I)/2013, Islamabad, the 3 April, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 570(I)/2005, dated the 6 th
June, 2005, namely:–
In the aforesaid Notification,
(1) In Table-I,–
(a) against S. No. 17A in column (1), in column (4), for the figure “20”, the figure “35” shall
be substituted;
(b) against S. No. 18 in column (1), in column (2), for the figure “140490”, the figure
“1404.9041” shall be substituted;
(c) against S. No. 19 in column (1), in column (2), for the figure “140490”, the figure
“1404.9049” shall be substituted;
(d) after S. No. 19 in column (1), and the entries relating thereto in column (2), (3) and (4),
the following new serial number and the entries relating thereto shall be inserted,
namely:-
1513.1100 Crude Coconut Oil 50% (MOP shall be
100% from
1st July,
2013)”;
(e) S. No. 154 in column (1) and entries relating thereto in columns (2), (3) and (4) shall be
omitted;
(f) S. No. 155 in column (1) and entries relating thereto in columns (2), (3) and (4) shall be
omitted;
(g) against S. No. 157 in column (1), in column (2), for the figure “691110”, the figure
“691200” shall be substituted;
(h) against S. No. 158 in column (1), in column (2), for the figure “691190”, the figure
“691200” shall be substituted;
(i) after S. No. 193 in column (1), and the entries relating thereto in column (2), (3) and (4),
the following new serial number and entries relating thereto in columns (2), (3) and (4)
shall be inserted, namely:–
“193A 8418.5000 Bottle cooling machine 50%”;
(j) S. No. 200 in column (1) and entries relating thereto in columns (2), (3) and (4) shall be
omitted;
(k) S. No. 201 in column (1) and entries relating thereto in columns (2), (3) and (4) shall be
omitted; and
 223

(l) S. No. 206 in column (1) and entries relating thereto in columns (2), (3) and (4) shall be
omitted; and
(2) for the existing Table-IV, the following shall be substituted, namely:–
“Table-IV
[No Concession List]
HS Code in
the First
S. No. Schedule to Description
the Customs
Act, 1969
(1) (2) (3)
1 040221 Dairy produce, milk and cream, concentrated, not containing added sugar or
other sweetening matter, in powder, granules or other solid forms, of a fat
content exceeding 1.5% (by weight)
2 040229 Dairy produce; milk and cream, containing added sugar or other sweetening
matter, in powder, granules or other solid forms, of a fat content exceeding
1.5% (by weight)
3 040310 Dairy produce, yogurt, whether or not concentrated or containing added
sugar or other sweetening matter or flavoured or containing added fruit or
cocoa.
4 040390 Dairy produce; buttermilk, curdled milk or cream, kephir, fermented or
acidified milk or cream, whether or not concentrated or containing added
sweetening, favourng fruit or cocoa (excluding yogurt)
5 040410 Dairy produce; whey, whether or not concentrated or containing added sugar
or other sweetening matter
6 040510 Dairy produce; derived from milk, butter
7 080261 Macadamia nuts
8 080262 Macadamia nuts
9 090210 Green tea (not fermented) in immediate packings of a content not
10 090220 Other green tea (not fermented)
11 090230 Black tea (fermented) and partly fermented tea, in immediate packings not
exceeding 3 kg
12 090240 Other black tea (fermented) and other partly fermented tea:
13 140490 Other, excluding betel leaves (1404.9020), Broomcorn (sorghum vulgare var
technicum) (1404.9041) and Other (1404.9049)
14 150790 Other
15 150890 Other
16 151190 Other:
17 151219 Other
18 151229 Other
19 151319 Other
20 151321 Crude oil
21 151329 Other
22 151419 Other
23 151499 Other
 224

24 151519 Other
25 151529 Other
26 151530 Castor oil and its fractions
27 151540 Tung oil and its fractions:
28 151550 Sesame oil and its fractions
29 151590 Others
30 151610 Animal fats and oils and their fractions
31 151620 Vegetable fats and oils and their fractions:
32 151710 Margarine, excluding liquid margarine
33 151790 Other
34 151800 Animal or vegetable fats and oils and their fractions, boiled, oxidised,
dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert
gas or otherwise chemically modified, excluding those of heading
15.16; inedible mixtures or preparations of animal or vegetable fats or oils
or of fractions of different fats or oils of this Chapter, not elsewhere specified
or included.
35 210320 Sauces; tomato ketchup and other tomato sauces
36 220110 Mineral waters and aerated waters:
37 220190 Other
38 220210 Waters, including mineral waters and aerated waters, containing added
39 220290 Other:
40 220300 Beer made from malt.
41 220410 Wine of fresh grapes, including fortified wines in containers holding two litres
or less
42 220420 Vermouth and other wine of fresh grapes in containers holding 2 litre or less
43 220429 Other
44 220430 Other grape must
45 220500 In containers holding 2 litre or less
46 220590 Other
47 220600 Other fermented beverages.
48 220710 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol
49 220720 Ethyl alcohol and other spirits, denatured, of any strength
50 220820 Spirits obtained by distilling grape wine or grape marc
51 220830 Whiskies
52 220840 Rum and other spirits obtained by distilling fermented sugar-cane products
53 220850 Gin and Geneva
54 220860 Vodka
55 220870 Liqueurs and cordials
56 220890 Other
57 220900 Vinegar and substitute of vinegar obtained from acetic acid
58 240110 Tobacco, not stemmed /striped
 225

59 240120 Tobacco, partly or wholly stemmed/ stripped

60 240130 Tobacco refuse
61 240210 Cigars, cheroots and cigarillos, containing tobacco
62 240220 Cigarettes containing tobacco
63 240290 Other
64 240311 Smoking tobacco, whether or not containing tobacco substitutes in any
proportion
65 240319 Smoking tobacco, whether or not containing tobacco substitutes in any
proportion
66 240391 Homogenized or “reconstituted” tobacco
67 240399 Other:
68 281511 Sodium hydroxide (caustic soda); potassium hydroxide (caustic)
69 281512 In Aqueous solution (soda lye or liquid soda)
70 281520 Potassium Hydroxide (Caustic Potash)
71 281530 Peroxides of sodium or potassium
72 283620 Disodium carbonate (soda ash)
73 283630 Sodium hydrogen carbonate (sodium bicarbonate)
74 291736 Acids; aromatic polycarboxylic acids; terephthalic acid and its salts
75 320810 Paints and varnishes; based on polyesters, dispersed or dissolved in a non-
aqueous medium
76 320910 Paints and varnishes; based on acrylic or vinyl polymers, dispersed or
dissolved in an aqueous medium
77 320990 Paints and varnishes; (based on polymers other than acrylic or vinyl),
dispersed or dissolved in an aqueous medium
78 321410 Mastics; painters’ fillings
79 321590 Ink; writing, drawing and other inks, n.e.s. in heading no. 3215,
whether or not concentrated or solid
80 330300 Perfumes and toilet waters.
81 330610 Oral or dental hygiene preparations; dentifrices
82 330741 Agarbatti and other odoriferous preparations which operate by burning
83 330749 Other
84 340111 Soap and organic surface-active products; in the form of bars, cakes, moulded
shapes, and paper, wadding, felt and nonwovens, impregnated, coated or
covered with soap or detergent, for toilet use (including medicated products)
85 340119 Soap and organic surface-active products; in the form of bars, cakes, moulded
shapes, and paper, wadding, felt and nonwovens, impregnated, coated or
covered with soap or detergent, not for toilet use
86 340120 Soap; in forms n.e.s. in item no. 340.11
87 340510 Polishes, creams and similar preparations; for footwear or leather, excluding
waxes of heading no. 3404
88 340520 Polishes, creams and similar preparations; for the maintenance of wooden
furniture, floors or other woodwork, excluding waxes of heading no. 3404
89 360500 Matches; other than pyrotechnic articles of heading no. 3604
 226

90 380891 Insecticides excluding mosquito repellant coil; put up in forms or packings for
retail sale or as preparations or articles
91 381400 Solvents and thinners; organic composite solvents and thinners, n.e.s. or
included, prepared paint or varnish removers
92 390110 Primary Forms, polymers of ethylene, in primary forms, polyethlene having a
specific gravity of less than 0.94
93 390120 Primary Forms, polymers of ethylene, in primary forms, Polyethlene having a
specific gravity of 0.94 or more
94 390130 Primary Forms, polymers of ethylene, in primary forms, Ethylene vinyl
acetate copolymers
95 390190 Primary Forms, polymers of ethylene, in primary forms, Other
96 390311 Styrene polymers; expansible polystyrene, in primary forms
97 390319 Styrene polymers; (other than expansible polystyrene), in primary forms
98 390410 Vinyl chloride, other halogenated olefin polymers; poly (vinyl chloride), not
mixed with any other substances, in primary forms
99 390512 Poly (vinyl acetate); in aqueous dispersion, in primary forms
100 390519 Poly (vinyl acetate); (other than in aqueous dispersion), in primary forms
101 390690 Acrylic polymers; (other than polymethyl methacrylate), in primary forms
102 390730 Epoxide resins; in primary forms
103 390750 Alkyd resins
104 390760 Poly (ethylene terephthalate); in primary forms
105 390791 Polyesters; n.e.s. in heading no. 3907, unsaturated, in primary forms
106 390799 Others
107 390910 Amino-resins; urea and thiourea resins, in primary forms
108 390920 Amino-resins; melamine resins, in primary forms
109 390930 Amino-resins; n.e.s. in heading no. 3909, in primary forms
110 390940 Phenolic resins; in primary forms
111 391231 Cellulose ethers; carboxymethyl cellulose and its salts, in primary forms
112 391710 Plastics; artificial guts (sausage casings) of hardened protein or of cellulosic
materials
113 391721 Plastics; tubes, pipes and hoses thereof, rigid, of polymers of ethylene
114 391722 Plastics; tubes, pipes and hoses thereof, rigid, of polymers of propylene
115 391723 Plastics; tubes, pipes and hoses thereof, rigid, of polymers of vinyl chloride
116 391729 Plastics; tubes, pipes and hoses thereof, rigid, of plastics n.e.s. in heading no.
3917
117 391731 Plastics; tubes, pipes and hoses thereof, flexible, having a minimum burst
pressure of 27.6Mpa
118 391732 Plastics; tubes, pipes and hoses thereof, other than those of item no.
3917.31, not reinforced or otherwise combined with other materials, without
fittings
119 391733 Plastics; tubes, pipes and hoses thereof, other than those of item no.
 227

3917.31, not reinforced or otherwise combined with other materials, with

fittings
120 391739 Plastics; tubes, pipes and hoses thereof, n.e.s. in item no. 3917.30
121 391740 Plastics; tube, pipe and hose fittings (e.g. joints, elbows, flanges)
122 391810 Floor, wall or ceiling coverings; of polymers of vinyl chloride, whether or
not self- adhesive, in rolls or in the form of tiles
123 391890 Floor, wall or ceiling coverings; of plastics (excluding polymers of vinyl
chloride), whether or not self-adhesive, in rolls or in the form of tiles
124 391910 Plastics; plates, sheets, film, foil, tape, strip, other flat shapes thereof, self-
adhesive, in rolls of a width not exceeding 20cm
125 391990 Plastics; plates, sheets, film, foil, tape, strip, other flat shapes thereof, self-
adhesive, other than in rolls of a width not exceeding 20cm
126 392010 Plastics; plates, sheets, film, foil and strip, or polymers of ethylene, non-
cellular and not reinforced, laminated, supported or similarly combined with
other materials
127 392020 Plastics; of polymers of propylene, plates, sheets, film, foil and strip, non-
cellular and not reinforced, laminated supported or similarly combined with
other materials
128 392030 Plastics; of polymers of styrene, plates, sheets, film, foil and strip, non-cellular
and not reinforced laminate, supported or similarly combined with other
materials
129 392043 Plastics; polymers of vinyl chloride, containing by weight not less than 6% or
plasticisers; plates, sheets, film, foil and strip, non-cellular and not reinforced,
laminated, supported or similarly combined with other materials
130 392049 Plastics; polymers of vinyl chloride, containg by weight, less than 6% of
plasticisers; plates, sheets, film, foil and strip, non-cellular and not reinforced,
laminated, suported or similarly combined with other materials
131 392051 Plastics; of acrylic polymers, polymethyl methacrylate, plates, sheets, film, foil
and strip, non-cellular and not reinforced, laminated, supported or similarly
combined with other materials
132 392059 Plastics; or acrylic polymers (excluding polymethyl methacrylate), plates,
sheets, film, foil and strip, non-cellular and not reinforced, laminated,
supported or similarly combined with other materials
133 392061 Plastics; plates, sheets, film, foil and strip, of polycarbonates, non-cellular and
not reinforced, laminated, supported or similarly combined with other
materials
134 392062 Plastics; plates, sheets, film, foil and strip, of poly (ethylene terephthalate),
non-cellular and not reinforced, laminated, supported or similarly combined
with other materials
135 392063 Plastics; plates, sheets, film, foil and strip, of unstaturated polyesters, non-
cellular and not reinforced, lamianted, supported or similarly combined with
other materials
136 392069 Plastics; plates, sheets, film, foil and strip, of polyesters n.e.s. in heading no.
3920, non-cellular and not reinforced, laminated, supported or similarly
combined with other materials
137 392071 Plastics; plates, sheets, film, foil and strip, of regenerated cellulose; non-
cellular and not reinforced, laminated, supported or similarly combined with
other materials
138 392072 Plastics; plates, sheets, film, foil and strip, of vulcanized fibre, non-cellular and
 228

not reinforced, laminated, supported or similarly combined with other

materials
139 392073 Plastics; plates, sheets, film, foil and strip, of cellulose acetate, non-cellular
and not reinforced, laminated, supported or similarly combined with other
materials
140 392079 Plastics; plates, sheets, film, foil and strip, of cellulose derivatives n.e.s. in
heading no. 3920, non-cellular and not reinforced, laminated, supported or
similarly combined with other materials
141 392091 Plastics; plates, sheets, film, foil and strip, of poly (vinyl butyral), non-cellular
and not reinforced, laminated supported or similarly combined with other
materials
142 392092 Plstics; plates, sheets, film, foil and strip, of polyamides, non-cellular and not
reinforced, laminated, supported or similarly combined with other materials
143 392093 Plastics; plates, sheets, film, foil and strip, of amino-resins, non cellular and
not reinforced, laminated, supported or similarly combined with other
materials
144 392094 Plastics; plates, sheets, film, foil and strip, of phenolic resins, non-cellular and
not reinforced, laminated, supported or similarly combined with other
materials
145 392099 Plastics; plates, sheets, film, foil and strip, of plastics n.e.s. in heading no.
3920, non-cellular and not reinforced, laminated, supported or similarly
combined with other materials
146 392111 Plastics; plates, sheets, film, foil and strip, of polymers of styrene, cellular
147 392112 Plastics; plates, sheets, film, foil and strip, of polymers of vinyl chloride,
cellular
148 392113 Plastics; plates, sheets, film, foil and strip, of polyurethanes, cellular
149 392114 Plastics; plates, sheets, film, foil and strip, of regenerated cellulose, cellular
150 392119 Plastics; plates, sheets, film, foil and strip, of plastics n.e.s. in heading no.
3921, cellular
151 392190 Plastics; plates, sheets, film, foil and strip, other than cellular
152 392210 Plastics; baths, shower-baths, sinks and wash-basins
153 392220 Plastics; lavatory seats and covers
154 392290 Plastics; bidets, lavatory pans, flushing cisterns and similar sanitary ware
n.e.s. in heading no. 3922
155 392310 Plastics; boxes, cases, crates and similar articles for the conveyance or packing
of goods
156 392321 Ethylene polymers; sacks and bags (including cones), for the conveyance or
packing of goods
157 392329 Plastics; sacks and bags (including cones), for the conveyance or packing of
goods, of plastics other than ethylene polymers
158 392330 Plastics; Carboys, bottles, flasks and similar articles, for the conveyance or
packing of goods
159 392340 Plastics; spools, cops, bobbins and similar supports, for the conveyance or
packing of goods
160 392350 Plastics; stoppers, lids, caps and other closures, for the conveyance or packing
of goods
161 392390 Other
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162 392410 Plastics; tableware and kitchenware

163 392490 Plastics; household and toilet articles
164 392510 Plastics; builders’ ware, reservoirs, tanks, vats and similar containers of a
capacity exceeding 300 litres
165 392520 Plastics; builders’ ware, doors, windows and their frames and thresholds for
doors
166 392530 Plastics; builders’ ware, shutters, blinds (including venetian blinds) and similar
articles and parts thereof
167 392590 Plastics; builders’ ware, n.e.s. or included in heading no. 3925
168 392610 Plastics; office or school supplies
169 392630 Plastics; fittings for furniture, coachwork or the like
170 392640 Ornamental articles of plastics
171 392690 Plastics; other articles n.e.s. in chapter 39
172 401110 New pneumatic tyres, of rubber of a kind used on motor cars
173 401120 New pneumatic tyres, of rubber of a kind used on light trucks
174 401140 Rubber; new pneumatic tyres, of a kind used on motorcycles
175 401150 Rubber; new pneumatic tyres, of a kind used on bicycles
176 401161 New pneumatic tyres, of rubber of a kind used on agricultural / forestry
vehicles
177 401192 New pneumatic tyres, of rubber of a kind used on other agricultural / forestry
vehicles
178 401199 Rubber; new pneumatic tyres having other than a herring-bone or similar
tread, of a kind used on light industrial vehicles
179 401310 Inner tubes, of rubber
180 401320 Rubber; inner tubes, of a kind used on bicycles
181 401390 Rubber; inner tubes, n.e.s. in heading no. 4013
182 401695 Rubber; vulcanized (other than hard rubber), inflatable articles (other than
boat or dock fenders), of non-cellular rubber
183 401699 Articles of vulcanized rubber nes, other than hard rubber
184 441090 Particle board and similar board; of ligneous materials other than wood,
whether or not agglomerated with resins or other organic binding substances
185 441239 Others
186 480300 Tissue, towel, napkin stock or similar; for household or sanitary use, cellulose,
wadding webs of cellulose fibres, in rolls exceeding 36cm in width or
rectangular sheets with one side more than 36cm in unfolded state
187 480540 Paper and paperboad; filter paper and paperboard, uncoated, in rolls or
sheets.
188 481022 Paper and paperboad; coated with kaolin or other inorganic substances, only,
having more than 10% of mechanical or chmi mechanical processed fibres, for
writting printing or other graphic purposes, light weight coated paper, in rolls
or sheets
189 481149 Paper and paperboard; gummed or adhesive paper and paperboard
(excluding self-adhesive), in rolls or sheets, other than goods of heading no.
 230

4803, 4809, 4810 or 4818

190 481710 Paper and paperboard; envelopes
191 481720 Paper and paperboard; letter cards, plain postcards and correspondence
cards
192 481810 Paper; toilet paper
193 481960 Paper and paperboard; box files, letter trays, storage boxes similar articles
used in offices, shops or the like of paper, paperboard cellulose wadding or
webs of cellulose fibres.
194 482030 Paper and paperboard; binders, folders and file covers.
195 482090 Paper or paperboard; other stationery items excluding registers, account
books etc., letter pads, forms albums, and binders
196 490900 Printed or illustrated postcards; printed cards bearing personal greetings,
messages or anouncements, whether or not illustrated, with or without
evelopes or trimmings
197 491000 Calendars; printed, of any kind, including calendar blocks.
198 540110 Sewing thread; of synthetic filaments, whether or not put up for retail sale
199 540220 Yarn; (not sewing thread), high tenacity yarn of polyesters (including synthetic
monofilament of less than 67 decitex), not put up for retail sale
200 540233 Yarn; textured, (not sewing thread), of polyesters (including synthetic
monofilament of less than 67 decitex), not put up for retail sale
201 540246 Others of Polyesters partially oriented
202 540247 Others of Polyesters
203 540252 Yarn; (not sewing thread), single, of polyesters (including synthetic
monofilament of less than 67 decitex), with a twist exceeding 50 turns per
meter, not put up for retail sale, not textured, not high tenacity
204 540262 Yarn; (not sewing thead), multiple (folded) or cable, of polyesters (including
synthetic monofilament of less than 67 decitex),not put for retail sale, not
textured, not high tenacity
205 540310 Artificial filament yarn (other than sewing thread), not put up for retail sale,
including artificial monofilament of less than 67 decitex: high tenacity yarn of
viscose rayon.
206 540741 Fabrics, woven; containing 85% or more by weight of filaments of nylon or
other polyamides, unbleached or bleached
207 540752 Fabrics, woven; containing 85% or more by weight of textured polyester
filaments, dyed
208 550320 Fibres; synthetic staple fibres, or polyesters, not carded, combed or otherwise
processed for spinning
209 550330 Fibres; synthetic staple fibres, acrylic or modacrylic, not carded, combed or
otherwise processed for spinning
210 550921 Yarn; (not sewing thread), single, of synthetic staple fibres, containing 85% or
more by weight of polyester, not put up for retail sale
211 550922 Yarn; (not sewing thread), multiple (folded) or cabled yarn, of synthetic staple
fibres, containing 85% or more by weight of polyester, not put up for retail
sale
212 550951 Yarn; (not sewing thread), of polyester staple fibres, mixed mainly or solely
with artificial staple fibres, not put up for retail sale
 231

213 551211 Fabrics, woven; of synthetic staple fibres, containing 85% or more by
weight of polyester staple fibres, unbleached or bleached
214 551221 Fabrics, woven; of synthetic staple fibres, containing 85% or more by weight
of acrylic or modacrylic staple fibres, unbleached or bleached
215 551319 Fabrics, woven; containing less than 85% by weight of synthetic staple fibres
(other than polyesters), mixed mainly or solely with cotton, not exceeding
170g/m2, unbleached or bleached
216 551511 Fabrics, woven; of polyester staple fibres n.e.s. in chapter 55, mixed mainly or
solely with viscose rayon staple fibres
217 551513 Fabrics, woven; of polyester staple fibres n.e.s. in chapter 55, mixed mainly or
solely with wool or fine animal hair
218 560210 felt; needleoom felt and stich bonded fiber fabrics, whether or not
impregnated coated, covered or laminated
219 570231 Carpets and other textile floor coverings; woven, (not tufted or flocked), of
wool or fine animal hair, of pile construction, not made up, n.e.s. in item no.
5702.10 or 5702.20
220 610332 Of cotton:
221 610333 Of synthetic fibres:
222 610339 Of other textile materials
223 610341 Trousers, bib and brace overalls, breeches and shorts: Of wool or fine animal
hair
224 610342 Of cotton:
225 610343 Of synthetic fibres:
226 610349 Of other textile materials
227 610510 Men’s or boys’ shirts, knitted or crocheted. Of cotton
228 610520 Of man-made fibres:
229 610711 Men’s or boys’ Underpants and briefs: Of cotton:
230 610712 Of man-made fibres:
231 610719 Of other textile materials
232 610721 Nightshirts and pyjamas of cotton:
233 610722 Of man-made fibres:
234 610729 Of other textile materials
235 610791 Other: Of cotton:
236 610799 Of other textile materials
237 610811 Women’s or girls’ slips, petticoats, briefs, panties, nightdresses, pyjamas,
négligés, bathrobes, dressing gowns and similar articles, knitted or
crocheted. Slips and petticoats: Of man-made fibres:
238 610819 Of other textile materials
239 610821 Briefs and panties: Of cotton:
240 610822 Of man-made fibres:
241 610829 Of other textile materials
242 610831 Nightdresses and pyjamas of cotton:
243 610832 Of man-made fibres:
 232

244 610839 Of other textile materials

245 610891 Other of cotton:
246 610892 Of man-made fibres:
247 610899 Of other textile materials
248 610910 T-shirts, singlets and other vests, knitted or crocheted Of terry cotton:
249 610990 Made from man-made fibres
250 611011 Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or
crocheted. Of wool
251 611012 Of Kashmir (cashmere) goats
252 611019 Other
253 611020 Of cotton:
254 611030 Of man-made fibres:
255 611090 Of other textile materials
256 611120 Of cotton:
257 611130 Of man-made fibres:
258 611190 Of other textile materials
259 611211 Track suits. Of cotton:
260 611212 Of man-made fibres:
261 611219 Of other textile materials
262 611220 Ski suits
263 611231 Men’s or boys’ swimwear: Of synthetic fibres:
264 611239 Of other textile materials
265 611241 Women’s or girls’ swimwear: Of synthetic fibres:
266 611249 Of other textile materials
267 611300 Garments, made up of knitted or crocheted fabrics of heading 59.03, Of
cotton:
268 611420 Of cotton:
269 611430 Of man-made fibres:
270 611490 Of other textile materials
271 611521 of synthetic fibres, measuring per single yarn less than 67 decitex
272 611522 Of synthetic fibres, measuring per single yarn 67 decitex or more
273 611594 Of wool or fine animal hair
274 611595 Of cotton
275 611596 Of synthetic fibres
275 611599 Of other textile materials
276 611710 Shawls, scarves, mufflers, mantillas, veils and the like.of cotton
277 611780 Other accessories
278 611790 Parts
279 620311 Men’s or boys’ suits, ensembles, jackets, blazers, trousers, bib and brace
overalls, breeches and shorts (other than swimwear). Suits. Of wool or fine
 233

animal hair
280 620312 Of synthetic fibres:
281 620319 Of terry cotton:
282 620322 Of terry cotton:
283 620323 Of synthetic fibres:
284 620329 Of other textile materials
285 620331 Jackets and blazers: Of wool or fine animal hair
286 620332 Of terry cotton:
287 620333 Of synthetic fibres:
288 620339 Of other textile materials
289 620341 Of wool or fine animal hair
290 620342 Trousers, bib and brace overalls, breeches and shorts: Of terry cotton:
291 620343 Of synthetic fibres:
292 620349 Of other textile materials
293 620411 Women’s or girls’ Suits: Of wool or fine animal hair
294 620412 Of terry cotton:
295 620413 Of synthetic fibres:
296 620419 Of other textile materials
297 620421 Ensembles: Of wool or fine animal hair
298 620422 Of cotton
299 620423 Of synthetic fibres:
300 620429 Of other textile materials
301 620431 Jackets and blazers: Of wool or fine animal hair
302 620432 Of terry cotton:
303 620433 Of synthetic fibres:
304 620439 Of other textile materials
305 620441 Dresses: Of wool or fine animal hair
306 620442 Of cotton
307 620443 Of synthetic fibres:
308 620444 Of artificial fibres
309 620449 Of other textile materials
310 620451 Of wool or fine animal hair
311 620452 Of terry cotton:
312 620453 Of synthetic fibres:
313 620459 Of other textile materials
314 620461 Trousers, bib and brace overalls, breeches and shorts: Of wool or fine animal
hair
315 620462 Of terry cotton:
316 620463 Of synthetic fibres:
 234

317 620469 Of other textile materials

318 620520 Of cotton
319 620530 Of man-made fibres:
320 620590 Of other textile materials
321 620610 Women’s or girls’ blouses, shirts and shirt-blouses. Of silk or silk waste
322 620620 Of wool or fine animal hair
323 620630 Of cotton
324 620640 Of man-made fibres:
325 620690 Of other textile materials
326 620711 Men’s or boys’ Underpants and briefs: Of terry cotton:
327 620719 0f other texile materials
328 620721 Nightshirts and pyjamas of terry cotton:
329 620722 Of man-made fibres:
330 620729 Of other textile materials
331 620791 Other of terry cotton:
332 620799 Of other textile materials
333 620811 Women’s or girls’ Slips and petticoats: Of man-made fibres:
334 620819 Of terry cotton:
335 620821 Nightdresses and pyjamas of terry cotton:
336 620822 Of man-made fibres:
337 620829 Of other textile materials
338 620891 Other of terry cotton:
339 620892 Of man-made fibres:
340 620899 Of other textile materials
341 620920 Of terry cotton:
342 620930 Of synthetic fibres:
343 620990 Of other textile materials
344 621010 Garments made up of fabrics of heading 56.02 or 56.03
345 621020 Other garments, of the type described in subheadings 6201.11 to 6201.19
346 621030 Other garments, of the type described in subheadings 6202.11 to 6202.19
347 621040 Other men’s or boys’ garments
348 621050 Other women’s or girls’ garments
349 621111 Swimwear: Men’s or boys’
350 621112 Women’s or girls
351 621120 Ski suits Of terry cotton:
352 621132 Of terry cotton:
353 621133 Of man-made fibres:
354 621139 Of other textile materials
356 621141 Other garments, women’s or girls’: Of wool or fine animal hair
 235

357 621142 Of terry cotton:

358 621143 Of man-made fibres:
359 621149 Of other textile materials
360 621210 Brassieres:
361 621220 Girdles and panty-girdles:
362 621230 Corselettes
363 621290 Other:
364 621410 Shawls, scarves, mufflers, mantillas, veils and the like of silk or silk waste
365 621420 Of wool or fine animal hair
366 621430 Of synthetic fibres:
367 621440 Of artificial fibres
368 621490 Of other textile materials
369 621590 Of other textile materials
370 621600 Gloves, mittens and mitts of terry cotton:
371 621710 Other made up clothing Accessories, other than those of heading 62,12.
372 621790 Parts
373 630210 Bed sheets of bed linen, knitted or crocheted
374 630222 Of man-made fibres
375 630493 Not knitted or crocheted, of synthetic fibres
376 630510 Sacks and bags, of a kind used for the packing of goods of jute
377 630533 Other of Polypropylene or Polypropylene strip or the like
378 640219 Sports footwear; (other than ski-boots, snowboard boots or cross-country ski
footwear), with outer soles and uppers of rubber or plastics
379 640220 Footwear; with outer soles and uppers of rubber or plastics, upper straps or
thongs assembled to the sole by plugs
380 640299 Footwear; n.e.s. in heading no. 6402, (other than just covering the ankle),
with outer soles and uppers of rubber or plastics
381 640319 Sports footwear; (other than ski-boots, snowboard boots or cross-country ski
footwear), with outer soles of rubber, plastics, leather or composition leather
and uppers of leather
382 640320 Footwear; with outer soles of leather, uppers consisting of leather straps
across instep and around the big toe
383 640340 Footwear; with metal toe-cap, outer soles of rubber, plastics, leather or
composition leather, uppers of leather
384 640359 Footwear; n.e.s. in heading no. 6403, (not covering the ankle), outer soles
and uppers of leather
385 640399 Footwear; n.e.s. in heading no. 6403, (not covering the ankle), outer soles of
rubber, plastics or composition leather, uppers of leather
386 640411 Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes
and the like, with outer soles of rubber or plastics and uppers of textile
materials
387 640419 Footwear; (other than sportswear), with outer soles of rubber or plastics and
uppers of textile materials
 236

388 640420 Footwear; outer soles of leather or composition leather, uppers of textile
materials
389 681310 Brake linings and pads of asbestos or other mineral substances
390 690710 Ceramic tiles, cubes and similar articles; unglazed, whether or not
rectangular, the largest surface area of which is capable of being enclosed in a
square the side of which is less than 7cm
391 690810 Ceramic tiles, cubes and similar articles; glazed, whether or not rectangular or
on a backing, with the largest surface area less than a 7cm square
392 691090 Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet
pans, flushing cisterns, urinals and similar sanitary fixtures; of other than
porcelain or china
393 691110 Dinner sets
394 691190 Others
395 691410 Other ceramic articles of porcelain or china
396 700910 Glass; rear view mirrors for vehicles
397 700992 Glass mirrors; framed, excluding near view mirrors for vehicles
398 701328 Glassware; drinking glasses, not of glass-ceramics of lead crystal
399 701337 Glassware; drinking glasses, not of glass-ceramics of lead crystal
400 701400 Signalling glassware and optical elements... - optical elements
401 711711 Jewellery; imitation, cuff links and studs, of base metal, whether or not plated
with precious metal
402 711719 Jewellery; imitation, (excluding cuff links and studs), of base metal, whether
or not plated with precious metal
403 711790 Jewellery; imitation, of other than base metal, whether or not plated with
precious metal
404 720840 Iron or non-alloy steel; (not in coils), flat-rolled, of a width 600mm or more,
hot-rolled, with patterns in relief
405 720851 Iron or non-alloy steel; (not in coils), flat-rolled, of a width 600mm or more,
hot-rolled, without patterns in relief, of a thickness exceeding 10mm
406 720853 Iron or non-alloy steel; (not in coils), flat-rolled, of a width 600mm or more,
hot-rolled, without patterns in relief, of a thickness of 3mm or more but less
than 4.75mm
407 720854 Iron or non-alloy steel; (not in coils), flat-rolled, of a width 600mm or more,
hot-rolled, without patterns in relief, of a thickness of less than 3mm
408 720890 Iron or non-alloy steel; flat-rolled, hot-rolled, of a width 600mm or
more, n.e.s. in heading no. 7208
409 721011 Flat-rolled products of iron or non-alloy steel, of width of 600 mm or more,
clad, plated or coated; plated or coated with tin: of a thickness of 0.5 mm or
more.
410 721012 Flat-rolled products of iron or non-alloy steel, of width of 600 mm or more,
clad, plated or coated; plated or coated with tin: of a thickness of less than
0.5 mm.
411 721020 Flat-rolled products of iron or non-alloy steel, of width of 600 mm or more,
clad, plated or coated; plated or coated with lead.
 237

412 721030 Flat-rolled products of iron or non-alloy steel, of width of 600 mm or more,
clad, plated or coated; Electronically plated or coated with zinc.
413 721113 Iron or non-alloy steel; flat-rolled, hot-rolled, rolled on four faces or in a
closed box pass, of a width more than 150mm but less than 600mm, 4mm
thick or more, not in coils, without patterns in relief
414 721610 Iron or non-alloy steel; U, I or H sections, hot-rolled, hot-drawn or extruded,
of a height of less than 80mm
415 721621 Iron or non-alloy steel; L sections, hot-rolled, hot-drawn or extruded, of a
height of less than 80mm
416 721622 Iron or non-alloy steel; T sections, hot-rolled, hot-drawn or extruded, of a
height less than 80mm
417 721631 Iron or non-alloy steel; U sections, hot-rolled, hot-drawn or extruded, of a
height of
80mm or more
418 721632 Iron or non-alloy steel; I sections, hot-rolled, hot-drawn or extruded, of a
height of 80mm or more
419 721633 Iron or non-alloy steel; H sections, hot-rolled, hot-drawn or extruded, of a
height of 80mm or more
420 721640 Iron or non-alloy steel; L or T sections, hot-rolled, hot-drawn or extruded, of a
height of 80mm or more
421 721650 Iron or non-alloy steel; angles, shapes and sections, n.e.s. in heading no.
7216, hot-rolled, hot-drawn or extruded
422 721661 Iron or non-alloy steel; angles, shapes and sections, cold-formed or
cold-finished, obtained from flat-rolled products
423 721669 Iron or non-alloy steel; angles, shapes and sections, cold-formed or cold-
finished, (not obtained from flat-rolled products)
424 721691 Iron or non-alloy steel; angles, shapes and sections, n.e.s. in heading no.
7216, cold- formed or cold-finished, from flat-rolled products
425 721699 Iron or non-alloy steel; angles, shapes and sections, n.e.s. in heading no. 7216
426 731519 Parts of articulated link chain of iron or steel
427 732010 Leaf-springs and leaves therefor, of iron or steel
428 732111 Cooking appliances and plate warmers; for gas fuel or for both gas and other
fuels, of iron or steel
429 732112 Cooking appliances and plate warmers; for liquid fuel, of iron or steel
430 732119 Other, including appliances for solid fuel
431 732181 Domestic appliances; non-electric, (other than cookers and plate warmers),
for gas fuel or for both gas and other fuels, of iron or steel.
432 732182 Domestic appliances; non-electric, (other than cookers and plate warmers),
for liquid fuel, of iron or steel
433 732183 Domestic appliances; non-electric, (other than cookers and plate warmers),
for solid fuel, of iron or steel
434 732190 Domestic appliances; non-electric, parts thereof, of iron or steel
435 760720 Aluminum; foil, backed with paper, paperboard, plastics or similar backing
materials, of a thickness (excluding any backing) not exceeding 0.2mm
436 821110 Knives; with cutting blades, serrated or not (including pruning knives), sets of
assorted articles, excluding knives and blades of heading no. 8208
 238

437 821191 Knives; table knives, having fixed cutting blades, serrated or not, excluding
knives and blades of heading no. 8208
438 821192 Knives; having fixed cutting blades, (other than table knives), serrated or not,
excluding knives and blades of heading no. 8208
439 821193 Knives; with cutting blades, (having other than fixed blades), serrated or not,
excluding knives and blades of heading no. 8208
440 821194 Blades; cutting, serrated or not, excluding those of heading no. 8208
441 821195 Knives; with handles of base metal
442 830120 Locks; of a kind used for motor vehicles (key, combination or electrically
operated), of base metal
443 830130 Locks; of a kind used for furniture (key, combination or electrically operated),
of base metal
444 830140 Locks; (other than those for motor vehicles or furniture), (key, combination or
electrically operated), of base metal
445 830150 Clasps and frames with clasps; incorporating locks, of base metal
446 830160 Locks; parts of padlocks, locks, clasps and frames with clasps incorporating
locks, of base metal
447 830170 Keys; presented separately, of base metal
448 830230 Mountings, fittings, etc, for motor vehicles, of base metal, nes
449 840211 Boilers; water tube boilers with a steam production exceeding 45t per hour
450 840731 Spark-ignition reciprocating piston engines for vehicles, <=50cc
451 840732 Spark-ignition reciprocating piston engines for vehicles, 50-250cc
452 840733 Spark-ignition reciprocating piston engines for vehicles, 250-1000cc
453 840734 Spark-ignition reciprocating piston engines for vehicles, >1000cc
454 840790 Gas engines
455 840820 Diesel engines( Cubic capacity 3250 cc.) vehicles falling under of chapter
8702/8704
456 840991 Parts for spark-ignition internal combustion engines (excl. aircraft)
457 840999 Parts for compression-ignition internal combustion engines
458 841319 Pumps; for liquids, fitted or designed to be fitted with a measuring device,
other than pumps for dispensing fuel or lubricants
459 841330 Pumps; fuel, lubricating or cooling medium pumps for internal
combustion piston engines
460 841350 Pumps; reciprocating positive displacement pumps, n.e.s. in heading no.
8413, for liquids
461 841370 Pumps; centrifugal, n.e.s. in heading no. 8413, for liquids
462 841391 Pumps; parts thereof
463 841510 Air conditioning machines; comprising a motor-driven fan and elements for
changing the temperature and humidity, window or wall types, self-contained
or split-system
464 841520 Air conditioning machines; comprising a motor driven fan and elements for
changing the temperature and humidity, of a kind used for persons, in motor
vehicles
465 841581 Air conditioning machines; containing a motor driven fan, other than window
 239

or wall types, incorporating a refrigerating unit and a valve for reversal of the
cooling/heat cycle (reversible heat pumps)
466 841582 Air conditioning machines; containing a motor driven fan, other than window
or wall types, incorporating a refrigerating unit
467 841583 Air conditioning machines; containing a motor driven fan, other than window
or wall types, not incorporating a refrigerating unit
468 841590 Air conditioning machines; with motor driven fan and elements for
temperature control, parts thereof
469 841821 Compression-type
470 841829 Other
471 841840 Freezers; of the upright type, not exceeding 900l capacity
472 841850 Other furniture (chests, cabinets, display counters, show-cases and the like)
for storage and display, incorporating refrigerating or freezing equipment.
473 841869 Refrigerating or freezing equipment, compression type units whose
condensers are head exchangers
474 841891 Refrigerating or freezing equipment; parts, furniture designed to receive
refrigerating or freezing equipment
475 841899 Refrigerating or freezing equipment; parts thereof, other than furniture
476 842123 Oil or petrol-filters for internal combustion engines
477 842129 Machinery and apparatus for filtering/purifying liquids, nes
478 842131 Intake air filters for internal combustion engines
479 848310 Transmission shafts (incl. cam and crank shafts) and cranks for vehicles
480 848340 Gears and gearing; ball or roller screws; gear boxes and other speed
changers…for vehicles
481 848350 Pulleys and flywheels, including pulley blocks
482 848360 Clutches and shaft couplings (incl. universal joints)
483 848390 Parts of transmission shafts, cranks, bearing housings, gears, tc
484 848410 Gaskets... For vehicles
485 851120 Ignition magnetos; magneto-dynamos; magnetic flywheels
486 851130 Distributors; ignition coils
487 851140 Starters motors and dual purposes starter generators
488 851220 Lighting or visual signalling equipment for motor vehicles
489 851230 Sound signalling equipment for cycles or motor vehicles
490 851240 Windscreen wipers, defrosters and demisters for motor vehicles
491 851610 Heaters; electric, instantaneous or storage water and immersion heaters
492 851621 Heating apparatus; electric storage heating radiators
493 851640 Smoothing irons; electric
494 851650 Ovens; microwave, of a kind used for domestic purposes
495 851660 Ovens, cookers, cooking plates, boiling rings, grillers and roasters; of a kind
used for domestic purposes (excluding microwaves)
496 851671 Electro-thermal appliances; coffee or tea makers, of a kind used for domestic
purposes
 240

497 851679 Electro-thermal appliances; n.e.s. in heading no. 8516, used for domestic
purposes
498 851711 Line telephony or telegraphy apparatus; line telephone sets with cordless
handsets
499 851718 Line telephony or telegraphy apparatus; telephone sets, n.e.s. in item no.
8517.11, videophones
500 851762 Machines for the reception, conversion and transmission or regeneration
of voice, images or other data, including switching and routing apparatus
501 851769 Others
502 851821 Loudspeakers; single, mounted in their enclosures
503 851822 Loudspeakers; multiple, mounted in the same enclosure
504 851829 Loudspeakers; not mounted in their enclosures
505 852190 Video recording or reproducing apparatus; other than magnetic tape-type
506 852329 Media, unrecorded; magnetic tapes, prepared, of a width exceeding 4mm but
not exceeding 6.5mm, for sound or similar recording of other phenomena
(excluding products of chapter 37)
507 852851 Multimedia colour monitors
508 852859 Multimedia colour monitors
509 852871 Reception Apparatus for receiving satellite signals of a kind used with TV
(satellite dish receivers)
510 852871 Black and white or other monochrome
511 852872 Reception apparatus for receiving satellite signals of a kind used with TV
(Satellite dish receivers)
512 852872 Colour TV & reception apparatus
513 852873 Other balck & white or monochrome
514 853180 Other apparatus - electric call bells
515 853230 Electrical variable or adjustable (pre-set) capacitors
516 853650 Pressure swithes
517 853910 Sealed beam lamp units
518 853921 Tungsten halogen filament lamps (excl. ultra-violet or infra-red) (auto bulbs)
519 853922 Lamps; filament, (excluding ultra-violet or infra-red), of a power not
exceeding 200W and for a voltage exceeding 100 volts, other than tungsten
halogen
520 853929 Filament lamps, Flash light
521 854430 Ignition wiring sets and other wiring sets for vehicles, aircraft...
522 854441 Electric conductors
523 854442 Insulated electric conductors; for a voltage exceeding 80 volts but not
exceeding 1000 volts, fitted with connectors
524 854449 Insulated electric conductors; for a voltage exceeding 80 volts but not
exceeding 1000 volts, not fitted with connectors
525 854470 Insulated electric conductors; optical fiber cables
526 854590 Articles of graphite or other carbon, nes, for vehicles
527 854720 Insulating fittings; of plastics, for electrical machines, of insulating material
 241

only (except minor assembly parts), excluding those of heading no. 8546
528 854890 Parts
529 870110 Tractors; pedestrian controlled
530 870120 Tractors; road, for semi-trailers
531 870130 Tractors; track-laying
532 870190 Tractors; nes in heading no 8701 (other than tractors of heading no 8709)
533 870210 Vehicles; public transport type (carries 10 or more passengers), compression-
ignition internal combustion piston engine (diesel or semi-diesel)
534 870290 Vehicles; public transport type (carries 10 or more passengers),
other than compression-ignition internal combustion piston engine (diesel
or semi-diesel)
535 870310 Vehicles; specially designed for traveling on snow, golf cars and similar
vehicles
536 870321 Vehicles; spark-ignition internal combustion reciprocating piston engine,
cylinder capacity not exceeding 1000cc
537 870322 Vehicles; spark-ignition internal combustion reciprocating piston engine,
cylinder capacity exceeding 1000cc but not exceeding 1500cc
538 870323 Vehicles; spark-ignition internal combustion reciprocating piston engine,
cylinder capacity exceeding 1500cc but not exceeding 3000cc
539 870324 Vehicles; spark-ignition internal combustion reciprocating piston engine,
cylinder capacity exceeding 3000cc
540 870331 Vehicles; compression-ignition internal combustion piston engine (diesel or
semi-diesel), cylinder capacity not exceeding 1500cc
541 870332 Motor cars ( transport of persons )
542 870333 Vehicles; compression-ignition internal combustion piston engine (diesel
or semi- diesel), cylinder capacity exceeding 2500cc
543 870390 Vehicles; for transport of persons (other than those of heading no. 8702)
n.e.s. in heading no. 8703, including station wagons and racing cars
544 870410 Vehicles; dumpers, designed for off-highway use, for transport of goods
545 870421 Vehicles; compression-ignition internal combustion piston engine (diesel
or semi- diesel), for transport of goods, (of a g.v.w not exceeding 5 tonnes),
nes in item no 8704.1
546 870422 Vehicles; compression-ignition internal combustion piston engine (diesel
or semi- diesel), for transport of goods, (of a g.v.w. exceeding 5 tonnes but
not exceeding 20 tonnes), nes in item no 8704.1
547 870423 Vehicles; compression-ignition internal combustion piston engine (diesel
or semi- diesel), for transport of goods, (of a g.v.w. exceeding 20 tonnes), nes
in item no 8704.1
548 870431 Vehicles; spark-ignition internal combustion piston engine, for transport of
goods, (of a g.v.w. not exceeding 5 tonnes), nes in item no 8704.1
549 870432 Vehicles; spark-ignition internal combustion piston engine, for transport of
goods, (of a g.v.w. exceeding 5 tonnes), nes in item no 8704.1
550 870490 Motor vehicles for the transport of goods, nes
551 870510 Crane lorries - cargo crane trucks and mobile cranes
552 870520 Mobile drilling derricks
 242

553 870530 Fire fighting vehicles

554 870540 Concrete mixture lorries - truck mixers
555 870590 Other - mobile workshop, mobile clinics. Bitumen tankers
556 870600 Chassis fitted with engines, for the motor vehicles of HS code 87.01 to 87.05
557 870710 Vehicles; bodies (including cabs) for the motor vehicles of heading no. 8703
558 870790 Vehicles; bodies (including cabs) for the motor vehicles of heading no. 8701,
8702, 8704 or 8705
559 870810 Bumpers & parts thereof
560 870821 Safety seat belts
561 870829 Parts and accessories of bodies (incl. cabs), nes
562 870830 Components of Vehicles of Heading 87.01
563 870831 Mounted brake linings for motor vehicles
564 870839 Brakes and servo-brakes and their parts (excl. mounted brake linings)
565 870840 Gear boxes
566 870850 Drive-axles with differential
567 870860 Non-driving axles and their parts
568 870870 Parts... - rims fitted with tyres
569 870880 Suspensions shock absorbers
570 870891 Radiators
571 870892 Silencers and exhaust pipes
572 870893 Clutches and parts thereof
573 870894 Steering wheels, steering columns and steering boxes
574 870899 Other parts - chassis not fitted with engine, with or without fitting for HS code
8704
575 870911 Electrical vehicles, not fitted with lifting... equipment
576 870919 Works trucks (excl. electrical), not fitted with lifting... equipment
577 870990 Parts of works trucks of 87.09
578 871110 Motorcycles and cycles with reciprocating engine of capacity =<50cc
579 871120 Motorcycles (including mopeds) and cycles; fitted with an auxiliary motor,
reciprocating internal combustion piston engine, of cylinder capacity
exceeding 50 cc but not exceeding 250 cc , with or without side-cars; side-
cars.]
580 871130 Motorcycles (including mopeds) and cycles; fitted with an auxiliary motor,
reciprocating internal combustion piston engine, of cylinder capacity
exceeding 250cc but not exceeding 500cc, with or without side-cars; side-cars
581 871140 Motorcycles with reciprocating piston engine of capacity 500cc-800cc
582 871310 Invalid carriages, not mechanically propelled
583 871390 Invalid carriages, motorised or otherwise mechanically propelled
584 871410 Saddles of motorcycles (incl. mopeds)
585 871419 Parts and accessories of motorcycles (incl. mopeds), nes
586 871420 Parts and accessories of invalid carriages
 243

587 871491 Frames and forks and parts... - bicycle frames, front forks
588 871492 Wheel rims and spokes of cycles
589 871493 Hubs, not coaster braking hubs... and free-wheel sproket-wheels
590 871494 Brakes, coaster braking hubs and hub brakes and parts thereof of cycles
591 871495 Saddles of cycles
592 871496 Pedals and crank-gear and parts thereof of cycles
593 871499 Other - mudgaurds, chain stays, seat stays
594 871500 Baby carriages and parts thereof
595 871620 Trailers and semi-trailers; self-loading or self-unloading, for agricultural
purposes
596 871631 Tanker trailers and tanker semi tailers - With a gvw =
< 10000 kg over 5 years of old
597 871639 Trailers and semi-trailers; (other than tanker type)
598 871680 Vehicles; n.e.s. in heading no. 8716
599 871690 Trailers, semi trailers and other vehicles not mechanically propelled; parts
thereof for heading no. 8716
600 902810 Meters; gas, supply or production meters, including calibrating meters
thereof
601 902830 Meters; electricity supply or production meters, including calibrating meters
thereof
602 902920 Speed indicators and tachometers
603 940370 Furniture; plastic
604 940410 Mattress supports
605 940421 Mattresses; of cellular rubber or plastics, whether or not covered
606 *940429 Mattresses; of other materials, not cellular rubber or plastics
607 960910 Pencils and crayons; with leads encased in rigid sheath
* Except 8 digit tariff line of Sri-Lanka tariff schedule No. 9404.2901 & 9404.2902”.
_______________

S.R.O. 334(I)/2013, Islamabad, the 18 th April, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendment shall be made in its Notification No. S.R.O. 656(I)/2006, dated the 22 nd
June, 2006, namely:-
In the aforesaid Notification, in the conditions, in condition (xi), for the word and letters “an
NTN”, the letters and word “a valid CNIC” shall be substituted.
_______________

S.R.O. 495(I)/2013, Islamabad, the 12th June, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 655(I)/2006, dated the 22nd
June, 2006, namely:–
In the aforesaid Notification,–
(i) in condition (v), after the word “System”, occurring first time, the brackets, letters and
words “(PaCCS) or One Customs System” shall be omitted;
(ii) condition (vii) shall be omitted;
 244

(iii) in condition (ixa), after the word “year”, the words, letter and comma “as per Form-C, to
this notification”, shall be inserted; and
(iv) after condition (xii), the following new condition shall be added, namely:–
“(xiii) all the consignments imported under this notification shall only be cleared
through Customs Computerized System”;
(v) paragraph 3 shall be omitted;
(vi) in Form-B, in the Note at the end, after the word “System”, occurring first time, the
brackets, letters and words “(PaCCS) or One Customs System” shall be omitted; and
(vii) after “Form-B”, the following shall be added, namely:-
“FORM-C
[See condition (ixa)]
(To be filled in by the Chief Executive of the company)
Name of the Firm: ……………
EDB - IOR Certificate No: ………..…
Date: …………

Previous Stock (if any)

material with Size /

Name of the Part

Grade & Specification
Description of

Qty of

Qty of material

manufactured.
No. of Unites
Bill of Entry

manufactured
consumed
material Total

Balance
S. PCT (GD) Vehicle/
UOM imported Qty
No. Head Model
during the (5+8)
year
No. Date

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
A. Imported:–
Raw materials
Sub-components
Components
Sub-assemblies
B. Local:–
Raw materials
Sub-components
Components
Sub-assemblies
Statement of Purchase Orders and Delivery Challans
S. Part Part Name of Purchase Order Supply Invoice Sales Tax
No. Name Number Customer/ Paid Challan
Dealer
No. Date Qty. No. Date Qty. No. Date
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)”
_____________________________________________________________________________________
______________________________
2. This Notification shall take effect from the 13th June, 2013.
_______________

S.R.O. 496(I)/2013, Islamabad, the 12th June, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O 656(I)/2006, dated the 22 nd
June, 2006, namely:–
 245

In the aforesaid Notification,–

(i) in condition (i), for the semi-colon at the end, a colon shall be substituted and thereafter
the following proviso shall be added, namely:–
“Provided that the facility of assembly or manufacture under firm contract shall not be
available to importer, for auto rickshaw of heading 8703.2115, 3-Wheeler Cargo Loader of
heading 8704.3150 and vehicles of heading 87.11;”
(ii) in condition (iii), after the word “update”, for the letters and words “PaCCS or One
Customs System”, the words “Customs Computerized System” shall be substituted and
thereafter the full stop and words “.Pending verification of lists by the EDB, the customs
department may allow provisional release against “Corporate Guarantee” submitted by the
importer-cum-assembler or manufacturer” shall be omitted;
(iii) in condition (viii), after the word “System”, occurring first time, the brackets, letters and
words “(PACCS) or One Customs System” shall be omitted;
(iv) condition (x) shall be omitted;
(v) after condition (xii), the following new condition shall be added, namely:–
“(xiii) all the consignments imported under this notification shall only be cleared
through Customs Computerized System”; and
(vi) after the Table, for the existing “Annexure A”, the following “Annexure A” shall be
substituted, namely:–
“Annexure A
[See condition (i)]
MINIMUM IN-HOUSE ASSEMBLING/ MANUFACTURING FACILITIES REQUIRED FOR ASSEMBLERS /
MANUFACTURERS OF VEHICLES
A. CARS & LIGHT COMMERCIAL VEHICLES (LCVs)
1. Body welding shop
Following equipment / facilities should be available for sub-assembly/ Assembly covering Under
Body, Side Body / Side Panel, Main Body, Shell Body, Engine Compartment etc.
(a) Welding jigs; for sub assembly / assembly operations covering underbody, Engine
Compartment, Side Body / Side Panel, Main Body;
(b) Welding guns & Other Equipment; for above fixtures;
(c) Welding transformers;
(d) Hoists;
(e) Necessary tools;
(f) Body handling Equipment;
(g) Tools & gauges; for body parts fitting & body accuracy.
2. Body Paint shop
(a) Booth for:–
(i) Pretreatment including Cleaning, Degreasing, Metal preparation for Primer Coat;
(ii) Primer;
(iii) Under Coat;
(iv) Sealer;
(v) Top Coat.
(b) Dry Off / Baking ovens for:–
(i) Pretreatment;
(ii) Primer;
(iii) Under Coat;
 246

(iv) Sealer;
(v) Top Coat.
3. Vehicles Final Assembly:–
(a) Trim Line with Multiple Stations:-
(i) Trim Line with Multiple Station;
(ii) Sealer Pumps;
(iii) Conveyors;
(iv) Pneumatic Tools;
(v) Torque Wrenches;
(vi) Other Hand Tools.
(b) Chassis Line with Multiple Stations Equipped with hoists and underground Pits:–
(i) Central Lifter;
(ii) Engine Docking Machine/ System;
(iii) Axle Lifting Machine/ System;
(iv) Wheel Sub-assembly/Balancing;
(v) Wheel Assembly;
(vi) Pneumatic Tools.
(c) Final Line:–
(i) Coolant Feeder;
(ii) Brake Bleeding Machine;
(iii) AC coolant filing, if applicable;
(iv) Fuel Filling.
4. Vehicles Performance Testing Facilities:-
(a) Toe in Tester;
(b) Side Slip Tester;
(c) Brake Tester;
(d) Drum Tester;
(e) Turning radius;
(f) Headlight aiming tester;
(g) Shower tester
(With at least sufficient number of nozzles to cover roof, side walls, doors, windows and
floor in a rain simulation).
5. Inspection Equipments;–
6. Storage:–
(a) Vendorized / In-house Parts;
(b) CKD Parts;
(c) Finished Goods.
B. HEAVY COMMERCIAL VEHICLES (HCVs)
1. Main Chassis-Frame Assembly &/ or Riveting Line:–
(a) Jigs and fixtures for Drilling, Riveting & Welding Jigs and fixtures suitable for main chassis
making (assembling);
(b) Riveting Guns;
(c) Overhead Cranes and Hoists;
 247

(d) Riling Machines;

(e) Dollies;
(f) Suitable Welding Equipment.
2. Axle Assembly:–
(a) Tools for Axle Assembly;
(b) Hoist(s) / Crane(s);
(c) Press for fitting Hub Bearings;
(d) Stands;
(e) Toe in Toe Out Adjustment Tools;
(f) Torque Wrenches.
3. Welding Shop:–
(a) Welding Jigs;
(b) Spot Welding Guns;
(c) Welding Transformers;
(d) Hoists;
(e) Necessary Tools.
4. Paint Shop
(a) Booths for:–
(i) Cleaning, Degreasing, De-rusting etc;
(ii) E.D Painting facility for cabins;
(iii) Conventional system for body & Structural parts;
(iv) Pretreatment / Primer Coat;
(v) Top Coat.
(b) Chassis Paint / Touchup Area:–
(i) Spray Guns;
(ii) Paint Containers.
(c) Baking Ovens.
(d) Sealing equipments.
5. Vehicles Final Assembly
(a) Trim Line:–
(i) Cranes / Hoists;
(ii) Dollies for Bodies / cabins;
(iii) Pneumatic Tools;
(iv) Other Hand Tools.
(b) Chassis Line:–
(i) Cranes / Hoists;
(ii) Lifting Hangers equipment for dropping or docking the engines;
(iii) Torque Wrenches;
(iv) Wheels Sub assembly;
(v) Hanger for Cab Mounting;
(vi) Pneumatic Tools.
(c) Final Line:–
(i) Coolant Feeder;
 248

(ii) Brake Bleeding Machines.

6. Vehicles Performance Testing Machines:–
(i) Toe in tester;
(ii) Side Slip Tester;
(iii) Brake Tester;
(iv) Speedometer Tester;
(v) Headlight aiming Tester;
(vi) Shower Tester.
7. Inspection Tools and equipments.
8. Storage:–
(a) Vendorised and In house Parts;
(b) CKD Parts;
(c) Finished Goods.
C. TRACTORS
1. ENGINE ASSEMBLY
Sub Assembly:–
(a) Engine assembly line with proper tooling, jigs and fixtures including Degreasing and
Washing Machines;
(b) Gear Box assembly line with proper tooling, jigs and fixtures;
(c) Rear Axles assembly line with proper tooling, jigs and fixtures;
(d) Front Axle assembly line;
(e) Steering assembly;
(f) Wheel sub assembly.
2. PAINT SHOP FOR SHEET METAL AND CHASSIS
(a) Booth for:–
(i) Cleaning, Washing, Degreasing, De-rusting, Metal preparation for Primer Coat;
(ii) Phosphating / pretreatment;
(iii) Primer Coat;
(iv) Top Coat.
(b) Baking Ovens;
(c) Paint mixing and spraying equipment;
(d) Overhead conveyors for Sheet Metal Parts.
3. VEHICLES FINAL ASSEMBLY:–
(a) Conveyors;
(b) Material Handling Equipment;
(c) Pneumatic Tools supported by pneumatic air supply infrastructure & balancers;
(d) Torque Wrenches and Calibrators;
(e) Engine Docking Equipment;
(f) Overhead Gantries & Jib Cranes for Electric Hoist.
4. PERFORMANCE TESTING FACILITIES:–
(a) Toe in Tester;
(b) Brake Tester;
(c) Turning Radius;
 249

(d) Headlight aiming Tester;

(e) Roller Tester for Functional Inspection;
(f) Diesel Lab for calibration of Fuel Injection Equipment.
5. INSPECTION TOOLS/EQUIPMENTS:–
(a) Engine Dynamometer;
(b) Engine components contamination measuring equipment;
(c) Engine Noise Meter;
(d) Exhaust Gas Analyzer;
(e) Rear Axle Test rig;
(f) Hydraulic Test rig;
(g) Pre-loading equipment;
(h) Axle and play equipment;
(i) Paint-gloss and thickness testing equipment;
(j) Salt Spray testing equipment for paints;
(k) Material Testing Laboratory.
6. STORAGE:–
(a) Vendorised/In-house Parts;
(b) CKD Parts;
(c) Finished Goods.
7. Test Rigs for Endurance Testing of Safety / Critical items.
8. Availability of manufacturing drawings to include:–
(a) Dimensions;
(b) Materials;
(c) Mechanical and Physical properties;
(d) Assembly and Testing Procedures.
9. Availability of purchase orders on vendors / suppliers.
D. MOTORCYCLE/ MOTORCYCLE RICKSHAW
1. MOTORCYCLE FRAME WELDING SHOP
This shop will be completely equipped with the following:-
(a) Welding Jigs;
(b) Spot Welding Machine;
(c) MIG Welding Machine;
(d) Frame/Chassis Inspection Jigs;
(e) Boring Machine for the head pipe.
2. BODY PAINT SHOP
Booth for:–
(a) Cleaning, degreasing, de-rusting, metal preparation for phosphate;
(b) Spray Booths, including preparation area, spray, flash off;
(c) Finish Coat/ Final Coat;
(d) Baking Ovens.
3. ENGINE ASSEMBLY & TESTING
(a) Engine Assembly Line equips with fixtures for the following Sub-assemblies:–
(i) Crank Cases and Crank Case Covers;
 250

(ii) ACG Flywheel;

(iii) Complete Cylinder with Crankshaft and Connecting Rod;
(iv) Spindle Kick Starter and Spindle Gear Change/ Shifting;
(v) Spark Plug, Rocker Arm and Tappet adjusting;
(vi) Cover Cylinder Head and Oil Filling;
(b) Engines Assembly Tools:–
(i) Pneumatic Tools;
(ii) Torque Wrenches;
(iii) Compressor;
(iv) Press of Pneumatic Jig (for Ball Bearing fitting);
(v) Engine number Punching Arrangement;
(vi) Parts/ Material Handling System;
(vii) Dust Free Environments.
(c) Engine Testing Tools:–
(i) Test Bench of Check Gears and Neutral Light Functioning;
(ii) Measured Oil Filling Arrangement;
(iii) Leakage Testing.
4. TESTING INSTRUMENTS/ EQUIPMENTS FOR INSPECTION OF COMPONENTS/ PARTS BEFORE
ISSUANCE OF FINAL ASSEMBLY:–
(a) Surface Plate;
(b) Dimensional inspection instruments (e.g. verneercaliper, micrometer, dial indicator &
headlight gauge etc);
(c) Material hardness tester (metal & rubber);
(d) Destructive test arrangement (especially for chromed parts);
(e) Coating layer thickness meter;
(f) Functional tests;
(g) Peripheral/ run-out accuracy, etc., testing arrangement.
5. FINAL ASSEMBLY
(a) Frame Assembly Fixture:–
Fixture for complete motorcycle assembly to support/ hold the motorcycle height from
the first step of the assembly that/ is putting Engine or Frame Body up to the complete finished
product, including assembly of the motorcycle from the following:–
(i) Rear Fork (or swing arm);
(ii) Front and Rear Wheel;
(iii) Front and Rear Fenders;
(iv) Front and Rear Shock absorber;
(v) Steering Handle with Switch Assembly, Break Levers and Throttle;
(vi) Driver Chain and Chain Cases;
(vii) Fuel Tank Seat and Side Cover;
(viii) Wiring and Cables routing;
(ix) Speedometer, Head Light and Tail Light;
(x) Front and Rear, Right and Left Winkers;
(xi) Brake Pedal, Brake Rod and Gear Change Pedal;
(xii) Front and Rear Wheel Panels fitting;
 251

(xiii) Exhaust Muffler, rubber Step, Bar and Pillion Assembly fitting.
(b) Final Assembly Tools:–
(i) Pneumatic Guns;
(ii) Torque Wrenches;
(iii) Compressor;
(iv) Press or pneumatic Jig (for Cones and Bushes);
(v) Frame Number punching arrangement;
(vi) Parts/ Material Handling System.
6. FINAL INSPECTION:–
(a) Test Bench For Brake Testing;
(b) Speedometer Test Bench;
(c) Headlight aiming Testing;
(d) Vehicle Alignment;
(e) Emission Tester;
(f) Noise Tester.
7. STORAGE:–
a) Vendorised / In-House Parts;
b) CKD Parts;
c) Finished Goods.
E. STROKE AUTO RICKSHAW
1. FRAME WELDING SHOP:–
(a) Welding Jigs;
(b) Spot Welding Machines;
(c) MIG Welding;
(d) Frame/ Chassis Inspection Jigs.
2. BODY PAINT SHOP
System for:–
(a) Cleaning, degreasing, de-rusting, metal preparation for phosphate;
(b) Spray Booths, including preparation area, spray, flash off;
(c) Finish and final coat;
(d) Baking Ovens.
3. ENGINE ASSEMBLY AND TESTING
(a) Engine leakage Testing;
(b) Engine running/ endurance test.
4. TESTING INSTRUMENTS/ EQUIPMENTS FOR INSPECTION OF COMPONENTS/ PARTS BEFORE
ISSUANCE OF FINAL ASSEMBLY:–
(a) Surface Plate;
(b) Dimensional inspection instruments (e.g. veneer caliper, micrometer, dial indicator &
height gauge etc);
(c) Material hardness tester (metal & rubber);
(d) Destructive test arrangement (especially for chromed parts);
(e) Coating layer thickness meter;
(f) Parts fitting/ functional tests;
(g) Peripheral/ run-out accuracy, testing arrangement for the wheels.
 252

5. FINAL ASSEMBLY
(a) Chassis Assembly Line:
Chassis Assembly Line with Fixture / Conveyors for the assembling of complete 4-Stroke
Auto Rickshaw to support/ hold the Rickshaw Chassis/ Frame from the first step of the
assembly i.e. putting Engine and Rear & Front Body, up to the complete finished product,
including assemblies from the following:–
(i) Front Fork Assembly;
(ii) Front and Rear Wheels;
(iii) Differential sub-assembly testing;
(iv) Wheel Assembly;
(v) Front and Rear Shock absorbers/ Leaf Springs;
(vi) Steering Handle with Switch Assemblies, Break Leers and Throttle;
(vii) Wiring and Cables Routing;
(viii) Dash Board with panel meters;
(ix) Head Light, Tail Light and Winkers;
(x) Front and Rear, Right and left Winkers;
(xi) Front and Rear Body;
(xii) Wind screen and Back View Mirrors;
(xiii) Hood Frame and Hood Cover;
(xiv) Radiator Assy and engine water cooling system;
(xv) Exhaust muffler Assy.
(b) Final Assembly Tools;–
(i) Pneumatic Guns;
(ii) Torque Wrenches;
(iii) Compressor;
(iv) Press or pneumatic Jig (for Cones and Bushes);
(v) Frame Number Punching arrangement;
(vi) Parts/ Material Handling System.
6. FINAL INSPECTION:–
(a) Test Bench for Brake Testing;
(b) Speedometer Test Bench;
(c) Headlight aiming Testing System;
(d) Vehicle alignment;
(e) Emission Tester;
(f) Noise Tester.
7. STORAGE:–
(a) Vendorised / In-House Parts;
(b) CKD Parts;
(c) Finished Goods.”
2. This Notification shall take effect from the 13th June, 2013.
_______________

S.R.O. 497(I)/2013, Islamabad, the 12th June, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following amendments shall be made in its Notification No. S.R.O. 567(I)/2006, dated the 5 th June, 2006,
namely:–
 253

In the aforesaid Notification,–

(1) in Table-I,–
(i) serial number 16 in column (1) and corresponding entries relating thereto in columns
(2), (3), (4) and (5) shall be omitted;
(ii) serial number 24 in column (1) and corresponding entries relating thereto in columns
(2), (3), (4) and (5) shall be omitted;
(iii) serial number 28 in column (1) and corresponding entries relating thereto in columns
(2), (3), (4) and (5) shall be omitted;
(iv) serial number 29 in column (1) and corresponding entries relating thereto in columns
(2), (3), (4) and (5) shall be omitted; and
(v) serial number 48 in column (1) and corresponding entries relating thereto in columns
(2), (3), (4) and (5) shall be omitted; and
(2) in Table-III,–
(i) in heading ‘B’, after the word “CHEMICALS”, a stop dash shall be added and thereafter
the following shall be added, namely:–
“The exemption under this heading shall be available to the pharmaceutical
sector as per requirements determined by the Drug Regulatory Authority of Pakistan.”;
and
(ii) in heading ‘D’, after the word “PACKING”, a stop dash shall be added and thereafter the
following shall be added, namely:–
“The exemption under this heading shall be available to the pharmaceutical
sector as per requirements determined by the IOCO.”
2. This notification shall take effect from the 13 th June, 2013.
_______________

S.R.O. 498(I)/2013, Islamabad, the 12th June, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the
Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments
shall be made in its Notification No. S.R.O. 575(I)/2006, dated the 5 th June, 2006, namely:–
In the aforesaid Notification, in the Table, in column (1),–
(i) against S. No. 1, in column (2), against the captions ‘(A), (B), (C), (D), (E), (F), (G) and (H)’,
in column (5), for the word “Nil”, wherever occurring, the words “If used for agriculture sector
“ shall be substituted;
(ii) against S. No. 8, in column (5), for the existing clauses (i) to (iii), the following shall be
substituted, namely:-
(i) tourism departments of Provincial Governments, Gilgit-Baltistan, FATA and Department
of Tourist Services of Capital Administration and Development Division shall approve the
project. The project requirement shall, however, be determined by the Directorate of
Input/output Co-efficient Organization (IOCO) on the format prescribed as Annex-B to
this notification. The authorized officer of IOCO shall furnish all relevant information
Online to Pakistan Customs Computerized System against a specific user ID and
password obtained under Section 155D of the Customs Act, 1969 (IV of 1969);
(ii) locally manufactured goods of description as specified in column (2) and pre-fabricated
buildings can also be imported upon fulfillment of the following conditions, namely:-
(a) the exception shall be available on one time basis for setting up of new projects
and expansion of existing ones, and shall not be available on the spare parts;
(b) only those importers shall be eligible to avail the aforesaid exception whose
cases are recommended and forwarded by IOCO to FBR; and
(c) the goods shall not be sold or otherwise disposed of without prior approval of
the FBR and the payment of customs-duties and taxes at statutory rates be leviable at
 254

the time of import. Breach of this condition shall be construed as a criminal offence
under the Customs Act, 1969;
(iii) the importer shall furnish an undertaking in such form as may be prescribed by the
Collector of Customs covering the amount of customs-duties and taxes at the time of
clearance of goods and shall declare that the goods shall be used or installed in the
approved project; and
(iv) the undertaking shall be discharged subsequently on production of a certificate of
installation or consumption as per Annex-D to this notification within one year of the
date of importation of the goods from the Assistant Collector or Deputy Collector of
Customs within whose jurisdiction the project is located to the effect that the goods
have been duly installed or consumed, as the case may be.
(iii) against S. No. 35,
(a) in column (2), under item 1,–
(i) against clause (g), in column (3), after the figure “8413.7090”, the comma and
figure “,8413.7010” shall be added; and
(ii) after clause (i) and the corresponding entries relating thereto in columns (3), (4)
and (5), the following clause and the entries relating thereto shall be added, namely:–
“(j) Energy Saving Tube Lights 8539.3920”;
(b) in column (2) after item 11, the following new item shall be added, namely:–
“12. Any other item approved by the Alternative Energy Development Board (AEDB)
and concurred to by the FBR”;
(c) in column (5), for the words, brackets and letters “Subject to certification by Alternative
Energy Development Board (AEDB) Islamabad “ the word “Nil” shall be substituted;
(iv) against Sr. No. 35-A, in column (5), for the words, brackets and letters “Subject to
certification by Alternative Energy Development Board (AEDB) Islamabad”, the word “Nil” shall
be substituted; and
(v) after Annex-C, the following new annexure shall be added, namely:–
“Annex-D
FORM
Certificate No. __________ dated _______________ I ____________________ (Name of officer)
Collector or Deputy Collector of Customs ____________________ am satisfied that (Place of posting) the
goods, imported by M/s _____________________ under the provisions of Sr. No. 8 of said (Name of the
Company) SRO against GD Nos. _____________________ dated the ______________________ duly
been installed/consumed in the project.”.
2. This notification shall take effect from 13th June, 2013.
_______________

S.R.O. 499(I)/2013, Islamabad, the 12th June, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), clause (a) of sub-section (2) of section 13 of the Sales
Tax Act, 1990 and sections 53 and 148 of the Income Tax Ordinance, 2001 (XLIX of 2001), and in
supersession of Notification No. S.R.O. 607(I)/2012, dated the 2 nd June, 2012, the Federal Government is
pleased to exempt customs duty, sales tax and withholding tax on import of Hybrid Electric Vehicles
(HEVs) falling under PCT Code 87.03, specified in column (2) of the Table below, to the extent as specified
in column (3) thereof, namely:–
TABLE
S. No Engine Capacity Extent of exemption in leviable
duty & taxes
(1) (2) (3)
1 Upto 1200 CC 100%
2 From 1201 CC to 1800 CC 50%
3 From 1801 CC to 2500 CC 25%
 255

2. This notification shall take effect from the 13 th day of June, 2013.
_______________

S.R.O. 598(I)/2013, Islamabad, the 21st June, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to remit whole
amount of fine payable by a person against whom an amount of customs-duty is outstanding on account of
any adjudication order or who has failed to pay any amount of customs-duty or claimed inadmissible
refund or drawback of customs-duty due to any reason, subject to the condition that outstanding principal
amount of customs-duty is paid by the 30th June, 2013.
2. Nothing in this notification shall entitle any person to claim or take refund of any amount of
fine already paid by or recovered from him before the issuance of this notification.
_______________

S.R.O. 741(I)/2013, Islamabad, the 28 th August, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), read with section 18C thereof, the Federal Government
is pleased to exempt, with effect from 1st September, 2013, the import into Pakistan from Indonesia of
the goods specified in column (3) of Table below, falling under the headings and sub-headings of the First
Schedule to the said Act as specified in column (2) of the said table, from so much of the customs-duty
specified in First Schedule to the said Act, as is in excess of the rates specified in column(4) of that table:
Provided that in case the rate of customs-duty specified in column (4) of Table is higher than the
rate of customs-duty specified in the First Schedule to the said Act, the lower rate of customs-duty shall
be applicable:
Provided further that the goods shall be imported in conformity with the Indonesia-Pakistan
Preferential Trade Agreement Rules of Origin, 2012 notified by the Ministry of Commerce vide
Notification SRO 1485(I)/2012 dated 22 nd December 2012, read with the Import Policy Order as notified
by the Ministry of Commerce, from time to time.
TABLE
S. No. PCT Code Description PTA Rate
(1) (2) (3) (4)
1 0208.9000 Frog’s Leg 16
2 0301.1100 Ornamental Fish (Freshwater) 5
3 0301.1900 Ornamental Fish (Other) 5
4 0301.9100 Trout 5
5 0302.3200 Yellow fin Tunas 5
6 0306.1600 Cold water Shrimps And Prawns (Frozen) 5
7 0306.1700 Other Shrimps and Prawns 5
8 0306.2200 Lobsters (homarus spp) 5
9 0306.2600 Cold water Shrimps And Prawns (Non Frozen) 5
10 0306.2700 Other Shrimps and Prawns (Non Frozen) 5
11 0714.1000 Manioc (Cassava) 0
12 0714.2000 Sweet potatoes 0
13 0801.1100 Coconut desicated 0
14 0801.1990 Other coconut 5
15 0802.9000 Other 5
16 0803.1000 Bananas ( plantains) 20
17 0803.9000 Bananas (Other) 20
18 0804.3000 Pineapples (fresh or dried) 24
 256

S. No. PCT Code Description PTA Rate

19 0804.5030 Mangosteens 24
20 0805.4000 Grape Fruit, including pomelos 24
21 0901.1100 Coffee, not roasted, not decaffeinated 5
22 0901.1200 Coffee, not roasted, decaffeinated 5
23 0901.2100 Coffee, roasted, not decaffeinated 5
24 0901.9000 Other 5
25 0902.1000 Green Tea (not fermented) in immediate packing of a 5
content not exceeding 3 Kg
26 0902.2000 Other green tea (not fermented) 5
27 0902.3000 Black Tea (fermented) and partly fermented tea, in 5
immediate packing of a content not exceeding 3 Kg
28 0902.4010 Tea leaf 5
29 0902.4020 Black tea in a packing exceeding 3 kg 5
30 0902.4090 Other 5
31 0904.1120 White 0
32 0904.1110 Black (Pepper, Neither Crushed Nor Ground) 0
33 0904.1190 Other 0
34 0904.1200 Crushed or ground 9
35 0904.2110 Red chilies (whole) 9
36 0904.2210 Red chilies (other) 9
37 0904.2190 Fruits of the genus Capsicum or of the genus Pimenta. 9
Dried, neither crushed nor ground (Other)
38 0904.2290 Fruits of the genus Capsicum or of the genus Pimenta 9
Crushed or ground: Other
39 0905.1000 Vanilla, Neither crushed nor ground 0
40 0905.2000 Vanilla, Crushed or ground 0
41 0906.1100 Cinnamon (Cinnamomum zeylanicum Blume), neither 0
crushed nor ground
42 0906.2000 Crushed or ground 9
43 0907.1000 Cloves; Neither crushed nor ground 0
44 0907.2000 Cloves; Crushed or ground 0
45 0908.1100 Nutmeg; Neither crushed nor ground 0
46 0908.1200 Nutmeg; Crushed or ground 0
47 0908.2100 Mace; Neither crushed nor ground 0
48 0908.2200 Mace; Crushed or ground 0
49 0908.3110 Large (Cardamom);Neither crushed nor ground 0
50 0908.3120 Small (Cardamom); Neither crushed nor ground 0
51 0908.3200 Small(Cardamom); crushed nor ground 0
52 0909.6100 Seeds of anise or badian; Neither crushed nor ground 0
53 0909.6200 Seeds of anise or badian; Crushed or ground 0
54 0909.2100 Seeds of coriander; Neither crushed nor ground 0
55 0909.2200 Seeds of coriander; crushed or ground 0
 257

S. No. PCT Code Description PTA Rate

56 0909.3100 Seeds of cumin; Neither crushed nor ground 0
57 0909.3200 Seeds of cumin; crushed or ground 0
58 0909.6100 Seeds of caraway; Neither crushed nor ground 0
59 0909.6200 Seeds of caraway; crushed or ground 0
60 0909.6100 Seeds of fennel; juniper berries; Neither crushed nor 0
ground
61 0909.6200 Seeds of fennel; juniper berries; crushed or ground 0
62 0910.1100 Ginger; Neither crushed nor ground 9
63 0910.1200 Ginger; crushed or ground 9
64 0910.3000 Turmeric (curcuma) 9
65 0910.9100 Other spices Mixtures referred to in Note 1 (b) to this 9
Chapter.
66 0910.9910 Thyme, bay leaves 0
67 0910.9990 Curry 9
68 0910.9990 Other 9
69 1203.0000 Copra 5
70 1207.9900 Palm nuts & kernels 0
71 1301.9090 Other 9
72 1404.9090 Gambir 20
73 1511.1000 Crude Oil Rs. 6800/MT
74 1511.9010 Palm stearin Rs. 7692.5/MT
75 1511.9020 RBD palm oil Rs. 9180/MT
76 1511.9030 Palm olein Rs. 7692.5/MT
77 1511.9090 Others Rs. 9180/MT
78 1513.2100 Crude Oil of Palm Kernel Rs. 7692.5/MT
79 1513.2900 Other Rs. 9180/MT
80 1702.1110 Lactose 5
81 1702.1120 Lactose syrup 5
82 1702.1900 Other 5
83 1702.2010 Maple Sugar 5
84 1702.2020 Maple syrup 9
85 1702.3000 Glucose and glucose syrup, not containing fructose or 16
containing in the dry state less than 20% by weight of
fructose
86 1702.4000 Glucose and glucose syrup, containing in the dry state at 16
least 20% but less than 50% by weight of fructose,
excluding invert sugar.
87 1702.5000 Chemically pure fructose 9
88 1702.6000 Other fructose and fructose syrup, containing in the dry 16
state more than 50% by weight of fructose, excluding
invert sugar.
89 1702.9010 Maltose 5
90 1702.9020 Caramel 5
 258

S. No. PCT Code Description PTA Rate

91 1702.9030 Malto dextrins 5

92 1702.9090 Other 5
93 1801.0000 Cocoa beans, whole or broken, raw or roasted 0
94 1802.0000 Cocoa shells, husks, skins and other cocoa waste 0
95 1803.1000 Not defatted (Cocoa paste) 0
96 1803.2000 Wholly or Partly defatted (Cocoa paste) 0
97 1804.0000 Cocoa butter, fat and oil. 0
98 1805.0000 Cocoa powder, not containing added sugar or other 0
sweetening matter
99 1806.1000 Cocoa powder, containing added sugar or other 24
sweetening matter
100 1806.2010 Other preparations containing Cocoa 24
101 1806.2020 Chocolate crumbs in packing of 25kg or more in powder, 5
granules or briquettes.
102 1806.2090 Other 24
103 1806.3100 Other chocolate in blocks, slabs / bars filled (Filled) 24
104 1806.3200 Other chocolate in blocks, slabs / bars not filled (Not 24
Filled)
105 1806.9000 Sugar confectionary containing cocoa in any proportion 24
106 1901.1000 Preparation for infant use, malt extract for infant use put 16
up for retail sale
107 1901.2000 Mixes and doughs for the preparation of bakers’ wares of 9
heading 19.05
108 1901.9010 Malt extract 24
109 1901.9020 Shrimps crackery 24
110 1901.9090 Other 24
111 2008.2000 Pineapples 9
112 2009.4100 Of a Brix value not exceeding 20 (Pineapple Juice) 24
113 2009.9000 Mixtures of juices 24
114 2101.1110 Instant coffee in bulk 5
115 2101.1200 Preparations with a basis of extracts, essences or 5
concentrates or with a basis of coffee
116 2101.2000 Extracts, essences & concentrates, of tea or mate, and 5
preparations with a basis of these extracts essences or
concentrates or with a basis of tea or mate
117 2102.1000 Active yeasts 9
118 2102.2000 Inactive yeasts; other single cell micro organism, dead 9
119 2103.1000 Soya sauce 24
120 2103.1000 Soya sauce salted 24
121 2103.1000 Other soya sauce 24
122 2103.3000 Mustered flour and meal and prepared mustered 24
123 2103.9000 Other 24
 259

S. No. PCT Code Description PTA Rate

124 2104.1000 Soups & broths and preparation therefor 24
125 2106.1010 Protein hydrolysates 24
126 2106.1090 Other 24
127 2106.9050 Preparations including tablets consisting of saccharin, 24
lactose Compound used for making beverages in other
packing
128 2106.9090 Other food preparation n.e.s 24
129 2209.0000 Vinegar and substitutes for vinegar obtain from acetic acid 20
130 2915.1100 Formic Acid 20
131 2916.1200 Esters of acrylic acid 0
132 2918.1400 Citric acids 5
133 2922.4100 Lysine and its esters, salts thereof 0
134 3208.2010 Varnishes 16
135 3208.9011 Varnishes 5
136 3208.9019 Other 5
137 3302.9090 Other Mixtures of odoriferous substances 5
138 3303.0010 Perfumes and toilet waters 24
139 3303.0020 perfumes 24
140 3303.0090 Other 24
141 3304.3010 Nail polish 24
142 3304.3090 Manicure or pedicure preparation 24
143 3306.1010 Tooth paste 24
144 3307.2000 Personal deodorants 24
145 3307.4900 Other preparations for perfuming 24
146 3401.1100 for toilet use (including medicated products) 24
147 3401.2000 Soap in other forms 24
148 3402.1110 sulphonic acid(soft) 5
149 3402.1190 Other 16
150 3402.1190 Other anionic surface active agents 16
151 3402.2000 preparations put up for retail sale 20
152 3402.9000 Surface active preparations 20
153 3402.9000 Other 20
154 3404.9010 Sealing waxes 5
155 3404.9090 Other 5
156 3808.5010 Pesticides registered under the Agricultural Pesticides 0
Ordinance 1971
157 3808.9110 Insecticides 20
158 3808.9110 Mosquito coils, mats and the like 20
159 3808.9120 Naphthalene balls 20
160 3808.9130 Sex pheromone 0
161 3808.9150 Para dichlorobenzene blocks 20
 260

S. No. PCT Code Description PTA Rate

162 3808.9199 Other (Preparation put up in retail packing for agriculture) 0
163 3808.9199 Other 0
164 3808.9400 Disinfectants 0
165 3823.1200 Oleic Acid 0
166 3823.1300 Tall oil fatty acids 16
167 3823.1920 Palm acid oil 5
168 3823.1990 Other 9
169 3903.1990 Other 0
170 3903.2000 Styrene acrylonitrile (SAN) copolymers 0
171 3903.3000 Acrylonitrilebutadiene-styrene (ABS) copolymers 0
172 3903.9090 Other 0
173 3906.1000 Acrylic polymer in primary forms( Poly(methyl 5
methacrylate))
174 3906.9010 Acrylic polymer in primary forms (Cyanoacrylate) 16
175 3906.9020 Acrylic polymer in primary forms (Acrylic binders) 16
176 3906.9030 Acrylic polymer in primary forms (Pigment thickener) 0
177 3906.9040 Acrylic polymer in primary forms (Dispersing agent and 0
acrylic thickeners)
178 3906.9090 Acrylic polymer in primary forms (Other) 5
179 3907.1000 Polyacetals 0
180 3907.2000 Other polyethers 0
181 3907.3000 Epoxide resins 16
182 3907.4000 Polycarbonates 0
183 3923.2900 Of other plastics 20
184 3923.4000 Spools, cops, bobbins and similar supports 20
185 3926.9099 Other 16
186 4001.2200 Technically specified natural rubber (TSNR) 0
187 4002.1900 Other 0
188 4005.2000 Solutions; dispersions other than those of subheading 5
4005.10
189 4014.1000 Sheath contraceptives 0
190 4015.1900 Other 16
191 4016.9310 Gaskets of rubber 20
192 4016.9910 Printing blankets 0
193 4104.1100 Full grains, unsplit; grain splits Whole bovine skin leather 0
tanned
194 4104.1900 Other 0
195 4104.1900 Leather of bovine or equine 0
196 4401.3100 Sawdust and wood waste and scrap, whether or not 0
agglomerated in logs, briquettes, pellets or similar forms
(Wood pellets)
 261

S. No. PCT Code Description PTA Rate

197 4401.3900 Sawdust and wood waste and scrap, whether or not 0
agglomerated in logs, briquettes, pellets or similar forms
(other)
198 4405.0000 Wood wool; 0
199 4408.3900 Others 9
200 4408.9090 Other wood prepare for pencil manufacture 9
201 4409.2900 Non coniferous for parquet flooring 9
202 4412.3100 With at least one outer ply of tropical wood specified in 16
sub heading note 1 to this chapter
203 4413.0000 Densified wood in blocks plates, strips or profile shapes 0
204 4415.2000 Pallets, box pallets and other load boards; pallet collars 16
Other pallets, box pallets and other
205 4417.0010 Tools, tool bodies, tool handles, broom or brush bodies 16
and handles, of wood; boot or shoe lasts and trees, of
wood.
206 4418.2000 Doors and theirs frames and thresholds 16
207 4418.7900 Parquet panels 16
208 4418.9090 Other builders of woods 16
209 4420.1000 Statuettes and other ornaments of wood 16
210 4420.9090 Other wood marquetry, cases for cut 16
211 4421.9090 Wood paving block 16
212 4421.9090 Other article of wood 16
213 4806.2000 Greaseproof papers 16
214 4809.2000 Self copy paper 5
215 4809.9000 Other carbon paper in rolls or sheets 16
216 4810.2900 Other paper & Paper Board 16
217 4813.2000 In rolls of a width not exceeding 5 cm (Cigar Paper) 20
218 4822.1000 Of a kind used for winding textile yarn 20
219 4823.2000 Filter paper and paperboard 16
220 4823.9090 Other gums or adhesive paper 20
221 5208.3900 Other fabrics dyed 20
222 5209.4200 Denim 20
223 5402.1100 High tenacity yarn of nylon 5
224 5402.1900 Other yarn of nylon or other polyamides 5
225 5407.1000 Woven fabrics obtained from high tenancy yarn of nylon or 9
other polyamides or of polyesters
226 5603.1100 Non woven fabric 9
227 5609.0000 Articles of yarn, strip or the like of heading 54.04 or 54.05, 20
twine, cordage, rope or cables, not elsewhere specified or
included.
228 5804.1000 Tulles and other net fabrics 20
229 5806.3900 Other webbing of manmade fibre 20
230 5807.1010 Owen badges and similar 20
 262

S. No. PCT Code Description PTA Rate

231 5810.9200 Other embroidery of man made 20
232 6001.9110 Other pile fabrics of cotton (unbleached) 20
233 6001.9190 Other pile fabrics of cotton (unbleached) 20
234 6002.9000 Other warp knitted of man made 20
235 6101.9000 Men’s or boy’s overcoats of other textile materials 20
236 6104.1900 Women’s or girl's suits, ensembles, of other textile 20
materials
237 6104.5900 Of other textile materials Skirts and divided skirts 20
238 6109.1000 T-shirt other vests, of cotton 20
239 6111.2000 Babies’ garments; Of cotton 20
240 6111.3000 Babies’ garments; Of synthetic fibres 20
241 6111.9000 Babies’ garments; Of other textile materials 20
242 6203.1990 Man's suits of other fibres batik 20
243 6203.4200 Men’s trousers and shorts of cotton 20
244 6204.5900 Women’s skirts 20
245 6205.2090 Men’s or boy’s shirts of cotton 20
246 6301.9000 Other blankets and travelling rugs 20
247 6402.1900 Other (footwear of rubber) 20
248 6406.9000 Parts of footwear (other) 20
249 6601.1000 Garden or similar umbrella 20
250 6804.2100 Of agglomerated synthetic or natural diamond 0
251 6809.1100 Faced or reinforced with paper or paperboard only 20
252 6813.8900 Friction material and article 20
253 7002.3100 Of fused quartz or other fused silica 16
254 7009.9100 Unframed 20
255 7010.1000 Ampoules 20
256 7010.9000 Other 20
257 7011.1000 For electric lighting 9
258 7013.1000 Of glass ceramics 20
259 7013.3300 Of lead crystal of glass having a linear coefficient of 20
expansion not exceeding 5x106 per Kelvin within a
temperature range of 0oc to 300oc
260 7013.3700 Other 20
261 7013.9900 Other 20
262 7017.1010 Quartz reactor tubes and holders designed for insertion 0
into diffusion and oxidation furnaces for production of
semiconductor wafers
263 8418.2100 Compression type 24
264 8418.2900 Other 24
265 8443.3220 Inkjet printers 0
266 8443.3230 Laser printers 0
267 8469.0000 Word processing machines 0
 263

S. No. PCT Code Description PTA Rate

268 8471.5000 Other computers 0
269 8443.3210 Dot matrix printers 0
270 8471.7090 Backup management system 0
271 8471.8010 CD ROM writer 0
272 8517.6970 Wireless lane 0
273 8517.1210 Internet enabled cellular phones 0
274 8517.1290 Other cellular telephone 20
275 8517.6290 Other transmission apparatus for radio telephony or radio 16
telegraph
276 8518.2100 Single loudspeakers, mounted in their enclosure 16
277 8518.3000 Internet enabled hand phone 16
278 8518.4000 Audio Frequency Electric amplifiers 16
279 8518.4000 Electric Amplifiers When Used As Repeaters In Line 16
Telephony Products Falling Within The Information
technology agreement (ITA) (ita 1/b192)
280 8518.4000 Audio Frequency Amplifiers Used As Repeaters In Line 16
telephony products falling within the Information
technology agreement (ita/2)
281 8518.4000 Other Sound or video recording or reproducing apparatus 16
282 8525.5090 Central monitoring system 0
283 8525.5090 Telemetry monitoring system 0
284 8525.5090 Other 0
285 8525.8040 Digital. still image video cameras 5
286 8525.8090 other digital cameras 5
287 8536.9010 Connection and contact elements for wires and cable, 0
(ita1/a077); wafer probers
288 8536.9090 Other 16
289 8539.2200 Special purpose bulbs for medical equipment 16
290 8539.2200 Other, of a power not exceeding 200W and for a voltage 16
exceeding 100V
291 8539.2920 Operation lamp bulbs 16
292 8539.2920 Flashlight bulbs; miniature indicator bulbs, Rated up to 16
2.25 volts; special purpose bulbs for Medical equipment
293 8539.2990 Other. Having capacity exceeding .20 w but not Exceeding 16
300 w and voltage exceeding 100 volts
294 8539.2990 Other, having capacity not exceeding 200 W and A voltage 16
not exceeding 100 volts
295 8539.2990 Other 16
296 8539.3100 Fluorescent, hot cathode 16
297 8539.3100 Tubes lamps/ fluorescent lamps in straight or circular form 16
298 8539.3990 Other 16
299 8540.1100 Colour 0
300 8540.1200 Other 0
 264

S. No. PCT Code Description PTA Rate

301 9004.1000 Sunglasses 0
302 9201.1000 Upright pianos 5
303 9202.9000 Other string musical instruments (for example, guitars, 5
violins, harps);
304 9206.0000 Musical instrument drum 5
305 9206.0000 Percussion musical instruments (for example, drums, 5
xylophones, cymbals, castanets, maracas).
306 9401.5100 Seat of rattan 20
307 9403.6000 Buildup wooden furniture 24
308 9403.6000 Knockdown wooden furniture 24
309 9503.0090 Other toys 20
310 9506.6100 Lawn tennis balls 16
311 9506.6210 Soccer balls inflatable 16
312 9506.6950 Tennis Balls 16
313 9506.9990 Other 16
_______________

S.R.O. 940(I)/2013, Islamabad, the 21st October, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its Notification No. S.R.O. 656(I)/2006, dated the 22 nd
June, 2006, namely:–
In the aforesaid Notification,–
(a) after paragraph 2, the following new paragraph shall be inserted, namely:–
“2A. In line with the new entrant policy for motorcycle manufacturing industry with new
technology notified by Ministry of Industries and Production vide notification No. 4-1/2013/LED-II-(Vol-
III), dated the 26th September, 2013, the incentive of importing CKD kit in any form @ 10% customs-duty
imported in terms of serial No. 11 of the following TABLE by the new entrant for assembly or
manufacturing of motorcycles shall be withdrawn on components localized by the new entrant each year
in accordance with the approved localization plan. The expressions ‘new entrant’ and ‘new technology’
shall bear the same meaning as declared or notified by the Ministry of Industries and Production in
respect of motorcycle manufacturing industry.”; and
(b) in the TABLE, in column (1), against serial No.11, in column (3), against item (i), in
column (4), after the word “year”, the words and figure “and 10% for motorcycles for new
entrant for a period of five years” shall be added.
_______________

S.R.O. 1073(I)/2013, Islamabad, the 27th December, 2013.– In exercise of the powers conferred by
section 19 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the
following further amendments shall be made in its notification No. S.R.O. 1274(I)/2006 dated 29 th
December 2006, namely:–
In the aforesaid Notification,–
(i) in the preamble,–
(a) for the word “table”, wherever occurring, the word “TABLE-I” shall be substituted; and
(b) after the bracket and figure “(9)”, occurring for the second time, the following shall be
inserted, namely,–
“and the goods specified in column (3) of TABLE-II below, falling under the Heading and
sub-Heading numbers of First Schedule to the said Act as specified in column (2) of said TABLE-II, from so
 265

much of customs-duty as specified in First Schedule to the said Act as is in excess of the rates specified in
column (4), (5) and (6) of said TABLE-II from corresponding dates as specified in columns (4), (5) and (6)
thereof”; and
(ii) for the existing paragraph 2, the following paragraph 2 shall be substituted, namely:–
“2. In case the rate of customs-duty specified in columns (4), (5), (6), (7), (8) and (9)
of TABLE-I or columns (4), (5) and (6) of TABLE-II below, is higher than the rate of customs-duty
specified in the First Schedule to the said Act, lower rate of customs duty shall be applicable.”;
and
(iii) after paragraph 2, the existing Table shall be renamed as “TABLE-I” and after “TABLE-I”,
re-named as aforesaid, the following “TABLE-II” shall be added, namely:–
 266

“TABLE-II
Rate of Duty With Effect From (%)
S.No HS Code Tariff Description 1st January 1st January 1st January
2012 2013 2014
(1) (2) (3) (4) (5) (6)
- - NOT CUT IN PIECES, FRESH
1 0207.1100 20 10 5
OR CHILLED
2 0207.1200 - - NOT CUT IN PIECES, FROZEN 20 10 5
- - CUTS AND OFFAL, FRESH OR
3 0207.1300 20 10 5
CHILLED
4 0207.1400 - - CUTS AND OFFAL, FROZEN 20 10 5
-OF A FAT CONTENT, BY
5 0401.1000 20 10 5
WEIGHT, NOT EXCEEDING 1 %
-OF A FAT CONTENT, BY
6 0401.2000 WEIGHT, EXCEEDING 1 % BUT 20 10 5
NOT EXCEEDING 6 %
7 0403.1000 -YOGURT 20 10 5
8 0403.9000 -OTHER 20 10 5
-GRATED OR POWDERED
9 0406.2000 20 10 5
CHEESE, OF ALL KINDS
10 0406.9000 -OTHER CHEESE 20 10 5
11 0701.9000 -OTHER 0 0 0
TOMATOES, FRESH OR
12 0702.0000 0 0 0
CHILLED.
13 0703.1000 -ONIONS AND SHALLOTS 0 0 0
14 0703.2000 -GARLIC 0 0 0
15 0710.2100 - - PEAS (PISUM SATIVUM) 10 7 5
- - BEANS (VIGNA SPP.,
16 0710.2200 10 7 5
PHASEOLUS SPP.)
17 0710.2900 - - OTHER 10 7 5
18 0710.4000 -SWEET CORN 10 7 5
-OTHER VEGETABLES;
19 0711.9000 10 7 5
MIXTURES OF VEGETABLES
20 0712.2000 -ONIONS 10 7 5
21 0803.1000 -PLANTAINS 20 10 5
22 0804.5010 - - - GUAVAS 20 10 5
23 0804.5020 - - - MANGOES 20 10 5
24 0804.5030 - - MANGOSTEENS 20 10 5
25 0804.5040 - - - FROZEN MANGO 20 10 5
26 0804.5050 - - - MANGO PULP 20 10 5
27 0804.5090 - - - OTHER 20 10 5
28 0805.1000 -ORANGES 20 10 5
29 0805.2010 - - - KINO (FRESH) 20 10 5
30 0805.2090 - - - OTHER 20 10 5
 267

- GRAPEFRUIT, INCLUDING
31 0805.4000 20 10 5
POMELOS
-LEMONS (CITRUS LIMON,
CITRUS LIMONUM) AND LIMES
32 0805.5000 20 10 5
(CITRUS AURANTIFOLIA,CITRUS
LATIFOLIA)
33 0805.9000 -OTHER 20 10 5
34 0806.2000 -DRIED 20 10 5
35 0807.1100 - - WATERMELONS 20 10 5
36 0807.1900 - - OTHER 20 10 5
37 0809.2100 -- SOUR CHERRIES 20 10 5
38 0809.2900 -- OTHER 20 10 5
-PEACHES, INCLUDING
39 0809.3000 20 10 5
NECTARINES
40 0809.4000 -PLUMS AND SLOES 20 10 5
41 0810.1000 -STRAWBERRIES 20 10 5
42 0811.1000 -STRAWBERRIES 20 10 5
43 0811.9000 -OTHER 20 10 5
44 0812.1000 -CHERRIES 20 10 5
45 0812.9000 -OTHER 20 10 5
46 0813.1000 -APRICOTS 20 10 5
47 0813.3000 -APPLES 20 10 5
-MIXTURES OF NUTS OR DRIED
48 0813.5000 20 10 5
FRUITS OF THIS CHAPTER
49 1101.0010 - - - OF WHEAT 0 0 0
50 1101.0020 - - - OF MESLIN 10 7 5
51 1108.1100 - - WHEAT STARCH 10 7 5
52 1508.1000 -CRUDE OIL Rs. 13150/MT Rs. 6575/MT Rs. 3288/MT
53 1508.9000 -OTHER Rs. 14300/MT Rs. 7150/MT Rs. 3575/MT
54 1512.1100 - - CRUDE OIL Rs. 15000/MT Rs. 7500/MT Rs. 3750/MT
- - CRUDE OIL, WHETHER OR
55 1512.2100 NOT GOSSYPOL HAS BEEN Rs. 15000/MT Rs. 7500/MT Rs. 3750/MT
REMOVED
56 1512.2900 - - OTHER Rs. 16800/MT Rs. 8400/MT Rs. 4200/MT
57 1514.1100 - - CRUDE OIL Rs. 15000/MT Rs. 7500/MT Rs. 3750/MT
58 1514.1900 - - OTHER Rs. 16800/MT Rs. 8400/MT Rs. 4200/MT
59 1514.9100 - - CRUDE OIL Rs. 9050/MT Rs. 4525/MT Rs. 2263/MT
60 1514.9900 - - OTHER Rs. 10200/MT Rs. 5100/MT Rs. 2550/MT
61 1515.1100 - - CRUDE OIL Rs. 9500/MT Rs. 4750/MT Rs. 2375/MT
62 1515.1900 - - OTHER Rs. 10800/MT Rs. 5400/MT Rs. 2700/MT
63 1515.2100 - - CRUDE OIL Rs. 15000/MT Rs. 7500/MT Rs. 3750/MT
64 1515.2900 - - OTHER Rs. 16600/MT Rs. 8300/MT Rs. 4150/MT
-SESAME OIL AND ITS
65 1515.5000 Rs. 9050/MT Rs. 4525/MT Rs. 2263/MT
FRACTIONS
 268

-ANIMAL FATS AND OILS AND

66 1516.1000 Rs. 10200/MT Rs. 5100/MT Rs. 2550/MT
THEIR FRACTIONS
- - CONTAINING ADDED
67 1701.9100 FLAVOURING OR COLOURING 10 7 5
MATTER
68 1806.3100 - - FILLED 20 10 5
69 1806.3200 - - NOT FILLED 20 10 5
70 2008.3000 -CITRUS FRUIT 10 7 5
71 2008.4000 -PEARS 10 7 5
72 2008.5000 -APRICOTS 10 7 5
73 2008.6000 -CHERRIES 10 7 5
74 2008.9100 - - PALM HEARTS 10 7 5
75 2009.5000 -TOMATO JUICE 20 10 5
76 2009.9000 -MIXTURES OF JUICES 20 10 5
77 2201.9000 -OTHER 20 10 5
78 2204.1000 -SPARKLING WINE 20 10 5
- - IN CONTAINERS HOLDING 2
79 2204.2100 20 10 5
L OR LESS
80 2204.2900 - - OTHER 20 10 5
81 2204.3000 -OTHER GRAPE MUST 20 10 5
-IN CONTAINERS HOLDING 2 L
82 2205.1000 20 10 5
OR LESS
83 2205.9000 -OTHER 20 10 5
OTHER FERMENTED
BEVERAGES (FOR EXAMPLE,
CIDER, PERRY, MEAD);
MIXTURES OF FERMENTED
84 2206.0000 20 10 5
BEVERAGES AND MIXTURES OF
FERMENTED BEVERAGES AND
NON-ALCOHOLIC BEVERAGES,
NOT ELSEWHERE SPECIFIE
-UNDENATURED ETHYL
ALCOHOL OF AN ALCOHOLIC
85 2207.1000 20 10 5
STRENGTH BY VOLUME OF 80
% VOL OR HIGHER
- RUM AND OTHER SPIRITS
OBTAINED BY DISTILLING
86 2208.4000 20 10 5
FERMENTED SUGAR-CANE
PRODUCTS
87 2208.5000 -GIN AND GENEVA 20 10 5
88 2208.6000 -VODKA 20 10 5
89 2208.7000 -LIQUEURS AND CORDIALS 20 10 5
90 2208.9000 -OTHER 20 10 5
91 2306.1000 -OF COTTON SEEDS 10 7 5
92 2402.9000 -OTHER 20 10 5
- - “HOMOGENISED” OR
93 2403.9100 20 10 5
“RECONSTITUTED” TOBACCO
 269

94 2403.9910 - - - TOBBACO FOR CHEWING 20 10 5

95 2403.9990 - - - OTHER 20 10 5
96 2523.1000 -CEMENT CLINKERS 0 0 0
- - WHITE CEMENT, WHETHER
97 2523.2100 OR NOT ARTIFICIALLY 10 7 5
COLOURED
98 2523.2900 - - OTHER 0 0 0
99 2523.3000 -ALUMINOUS CEMENT 10 7 5
100 2833.2910 - - - SULPHATES OF FERROUS 5 5 5
101 2833.2920 - - - SULPHATES OF LEAD 5 5 5
102 2833.2930 - - - OF CHROMIUM 10 7 5
103 2833.2940 - - - OF ZINC 5 5 5
104 2833.2990 - - - OTHER 5 5 5
105 3304.3010 - - - NAIL POLISH 20 10 5
106 3304.3090 - - - OTHER 20 10 5
- - - FACE AND SKIN CREAMS
107 3304.9910 20 10 5
AND LOTIONS
108 3304.9920 - - - TONICS AND SKIN FOOD 20 10 5
109 3304.9990 - - - OTHER 20 10 5
110 3305.9010 - - - CREAM FOR HAIR 20 10 5
111 3305.9020 - - - DYES FOR HAIR 20 10 5
112 3305.9090 - - - OTHER 20 10 5
113 3402.1210 - - - PHARMACEUTICAL GRADE 10 7 5
- - - OTHER THAN IN RETAIL
114 3402.1220 10 7 5
PACKING
115 3402.1290 - - - OTHER 10 7 5
116 3405.1010 - - - FOR FOOTWEAR 20 10 5
117 3405.1020 - - - FOR LEATHER 10 7 5
-POLISHES, CREAMS AND
SIMILAR PREPARATIONS FOR
118 3405.2000 THE MAINTENANCE OF 10 7 5
WOODEN FURNITURE, FLOORS
OR OTHER WOODWORK
-POLISHES AND SIMILAR
PREPARATIONS FOR
119 3405.3000 20 10 5
COACHWORK, OTHER THAN
METAL POLISHES
120 3505.1010 - - - DEXTRINS 10 7 5
- - - DEXTRINS OF
121 3505.1020 10 7 5
PHARMACEUTICAL GRADE
122 3505.1090 - - - OTHER 10 7 5
MATCHES, OTHER THAN
123 3605.0000 PYROTECHNIC ARTICLES OF 20 10 5
HEADING 36.04.
- - - MOSQUITO COILS, MATS
124 3808.9110 20 10 5
AND THE LIKE
 270

125 3808.9120 - - - NAPTHALENE BALLS 20 10 5

126 3808.9130 - - - SEX PHEROMONE 0 0 0
127 3808.9140 - - - PB ROPE L& LTT 0 0 0
- - - PARA DICHLOROBENZENE
128 3808.9150 20 10 5
BLOCKS
- - - PRODUCTS REGISTERED
129 3808.9170 UNDER THE AGRICULTURAL 5 5 5
PESTICIDES ORDINANCE 1971
130 3808.9180 - - - PHOSPHATIC INSECTICIDES 5 5 5
131 3808.9191 - - - - EMAMECTINE BENZOATE 10 7 5
132 3808.9199 - - - - OTHER 5 5 5
- - - PRINTING GUM
(PREPARATION OF MODIFIED
133 3809.9110 STARCHES WITH OTHER GUMS 0 0 0
HAVING SPECIFIC APPLICATION
IN TEXTILE PRINTING
134 3809.9190 - - - OTHER 10 7 5
- - OF A KIND USED IN THE
135 3809.9300 10 7 5
LEATHER OR LIKE INDUSTRIES
136 3907.7000 - POLY(LACTIC ACID) 10 7 5
- - OF POLY(METHYL
137 3920.5100 10 7 5
METHACRYLATE)
- - OF REGENERATED
138 3920.7100 10 7 5
CELLULOSE
139 3920.7300 - - OF CELLULOSE ACETATE 10 7 5
- - OF OTHER CELLULOSE
140 3920.7900 10 7 5
DERIVATIVES
-SHUTTERS, BLINDS
(INCLUDING VENETIAN
141 3925.3000 20 10 5
BLINDS) AND SIMILAR
ARTICLES AND PARTS THEREOF
142 3926.2010 - - - PLASTIC BELTS 10 7 5
143 3926.2090 - - - OTHER 10 7 5
-FITTINGS FOR FURNITURE,
144 3926.3000 10 7 5
COACHWORK OF THE LIKE
- - - SYNTHETIC FLOATS FOR
145 3926.9010 10 7 5
FISHING NETS
- - - COILS OF PLASTICS
146 3926.9020 (CONTRACEPTIVES AND 5 5 5
ACCESSORIES THEREFOR)
- - - TRANSMISSION,
147 3926.9030 CONVEYOR OR ELEVATOR 10 7 5
BELTS
148 3926.9040 - - - LABORATORY WARE 10 7 5
- - - COLOSTOMY BAGS AND
149 3926.9050 0 0 0
URINE BAGS
150 3926.9060 - - - SHOE LASTS 10 7 5
151 3926.9070 - - - DESIGN PATTERNS, CARDS 5 5 5
 271

FOR TEXTILE AND LEATHER

GARMENTS
- - - -PLASTIC TAGS AND
152 3926.9091 5 5 5
STAPLES FOR GARMENTS
153 3926.9099 - - - -OTHER 10 7 5
- - OF A KIND USED ON MOTOR
154 4012.1100 CARS (INCLUDING STATION 20 10 5
WAGONS AND RACING CARS)
- - OF A KIND USED ON BUSES
155 4012.1200 20 10 5
OR LORRIES
- - OF A KIND USED ON
156 4012.1300 5 5 5
AIRCRAFT
157 4012.2000 -USED PNEUMATIC TYRES 20 10 5
158 4412.1000 - OF BAMBOO 10 7 5
- - BLOCKBOARD,
159 4412.9400 LAMINBOARD AND 10 7 5
BATTENBOARD
160 4412.9900 - - OTHER 10 7 5
161 4811.5910 - - - THERMAL FAX PAPER 10 7 5
- - - VOLATILE CORROSIVE
162 4811.5920 5 5 5
INHOBITOR (VCI) PAPER
- - - FLOOR COVERINGS ON A
BASE OF PAPER OR OF
163 4811.5930 20 10 5
PAPERBOARD, WHETHER OR
NOT CUT TO SIZE
164 4811.5990 - - - OTHER 10 7 5
-TABLECLOTHS AND
165 4818.3000 20 10 5
SERVIETTES
-ARTICLES OF APPAREL AND
166 4818.5000 10 7 5
CLOTHING ACCESSORIES
167 4818.9000 -OTHER 5 5 5
168 5407.8110 - - - UNBLEACHED 10 7 5
169 5407.8120 - - - BLEACHED 10 7 5
170 5407.8200 - - DYED 10 7 5
- - OF YARNS OF DIFFERENT
171 5407.8300 10 7 5
COLOURS
172 5512.1110 - - - UNBLEACHED 10 7 5
173 5512.1120 - - - BLEACHED 10 7 5
174 5512.1900 - - OTHER 10 7 5
175 5512.2110 - - - UNBLEACHED 10 7 5
176 5512.2120 - - - BLEACHED 10 7 5
177 5512.2900 - - OTHER 10 7 5
178 5513.1110 - - - UNBLEACHED 10 7 5
179 5513.1120 - - - BLEACHED 10 7 5
180 5513.1210 - - - UNBLEACHED 10 7 5
181 5513.1220 - - - BLEACHED 10 7 5
 272

182 5513.1310 - - - UNBLEACHED 10 7 5

183 5513.1320 - - - BLEACHED 10 7 5
184 5513.1910 - - - UNBLEACHED 10 7 5
185 5513.1920 - - - BLEACHED 10 7 5
186 5513.2900 - - OTHER WOVEN FABRICS 10 7 5
187 5513.3900 - - OTHER WOVEN FABRICS 10 7 5
188 5513.4900 - - OTHER WOVEN FABRICS 10 7 5
189 5514.1910 - - - UNBLEACHED 10 7 5
190 5514.1920 - - - BLEACHED 10 7 5
191 5514.2900 - - OTHER WOVEN FABRICS 10 7 5
192 5514.4900 - - OTHER WOVEN FABRICS 10 7 5
193 5515.2110 - - - UNBLEACHED 10 7 5
194 5515.2190 - - - OTHER 10 7 5
195 5515.2210 - - - UNBLEACHED 10 7 5
196 5515.2290 - - - OTHER 10 7 5
197 5515.2910 - - - UNBLEACHED 10 7 5
198 5515.2990 - - - OTHER 10 7 5
199 5515.9110 - - - UNBLEACHED 10 7 5
200 5515.9190 - - - OTHER 10 7 5
201 5515.9910 - - - UNBLEACHED 10 7 5
202 5515.9990 - - - OTHER 10 7 5
203 5516.1200 - - DYED 10 7 5
- - OF YARNS OF DIFFERENT
204 5516.1300 10 7 5
COLOURS
205 5516.1400 - - PRINTED 10 7 5
206 5516.2100 - - UNBLEACHED OR BLEACHED 10 7 5
207 5516.2200 - - DYED 10 7 5
- - OF YARNS OF DIFFERENT
208 5516.2300 10 7 5
COLOURS
209 5516.2400 - - PRINTED 10 7 5
210 5516.3100 - - UNBLEACHED OR BLEACHED 10 7 5
211 5516.3200 - - DYED 10 7 5
- - OF YARNS OF DIFFERENT
212 5516.3300 10 7 5
COLOURS
213 5516.3400 - - PRINTED 10 7 5
214 5516.4100 - - UNBLEACHED OR BLEACHED 10 7 5
215 5516.4200 - - DYED 10 7 5
- - OF YARNS OF DIFFERENT
216 5516.4300 10 7 5
COLOURS
217 5516.4400 - - PRINTED 10 7 5
218 5516.9100 - - UNBLEACHED OR BLEACHED 10 7 5
219 5516.9200 - - DYED 10 7 5
220 5516.9300 - - OF YARNS OF DIFFERENT 10 7 5
 273

COLOURS
221 55169400 - - PRINTED 10 7 5
-FLOOR COVERINGS OF
222 5702.2000 20 10 5
COCONUT FIBRES (COIR)
-WOVEN PILE FABRICS
(INCLUDING TERRY
223 5806.1000 TOWELLING AND SIMILAR 20 10 5
TERRY FABRICS) AND CHENILLE
FABRICS
WOVEN FABRICS OF METAL
THREAD AND WOVEN FABRICS
OF METALLISED YARN OF
HEADING 56.05, OF A KIND
224 5809.0000 20 10 5
USED IN APPAREL, AS
FURNISHING FABRICS OR FOR
SIMILAR PURPOSES, NOT
ELSEWHERE SPECIFIED
225 5901.9010 - - - BUCKRAM 20 10 5
226 5901.9090 - - - OTHER 20 10 5
227 6112.2000 -SKI SUITS 20 10 5
228 6117.9000 -PARTS 20 10 5
229 6212.3000 -CORSELETTES 20 10 5
230 6403.9100 - - COVERING THE ANKLE 20 10 5
-SLAG WOOL, ROCK WOOL
AND SIMILAR MINERAL
231 6806.1000 WOOLS (INCLUDING 10 7 5
INTERMIXTURES THEREOF), IN
BULK, SHEETS OR ROLLS
- - ARTICLES HAVING A
HARDNESS EQUIVALENT TO 9
232 6909.1200 10 7 5
OR MORE ON THE MOHS
SCALE
233 7216.2100 - - L SECTIONS 10 7 5
234 7304.2200 - - DRILL PIPE OF STAINLESS 10 7 5
STEEL
- - OTHER, OF STAINLESS
235 7304.2400 10 7 5
STEEL
-OF A CAPACITY OF 50 L OR
236 7310.1000 10 7 5
MORE
237 7310.2900 - - OTHER 10 7 5
238 7311.0010 - - - FOR CNG 0 0 0
239 7311.0020 - - - FOR LPG 0 0 0
240 7311.0030 - - - FOR CRYOGENIC 5 5 5
241 7311.0040 - - - FOR AEROSOL PRODUCTS 10 7 5
242 7311.0090 - - - OTHER 10 7 5
243 7315.2000 -SKID CHAIN 10 7 5
244 7317.0010 - - - NAILS 20 10 5
245 7317.0020 - - - TACKS 20 10 5
 274

246 7317.0030 - - - DRAWING PINS 20 10 5

247 7317.0090 - - - OTHER 20 10 5
248 7318.1100 - - COACH SCREWS 20 10 5
249 7318.1200 - - OTHER WOOD SCREWS 20 10 5
- - SCREW HOOKS AND SCREW
250 7318.1300 20 10 5
RINGS
251 7318.1400 - - SELF-TAPPING SCREWS 20 10 5
252 7318.2300 - - RIVETS 10 7 5
253 7318.2400 - - COTTERS AND COTTER-PINS 10 7 5
254 7320.2000 -HELICAL SPRINGS 20 10 5
- - - OF A KIND SOLELY AND
PRINCIPALLY USED IN
255 7320.9010 10 7 5
MANUFACTURE OF VIDEO
CASSETTES
- - - CONTROL SPRING FOR
HYDRAULIC LIFT FOR
256 7320.9020 20 10 5
AGRICULTURAL TRACTORS OF
SUB - HEADING 8701.9020
257 7320.9090 - - - OTHER 20 10 5
258 7321.8200 - - FOR LIQUID FUEL 20 10 5
- - OTHER, INCLUDING
259 7321.8900 20 10 5
APPLIANCES FOR SOLID FUEL
260 7407.1010 - - - BARS 5 5 5
261 7407.1020 - - - RODS 5 5 5
262 7407.1030 - - - TWISTED COPPER BARS 5 5 5
- - - BUSBARS OF ELECTROLYTIC
263 7407.1040 5 5 5
GRADE OF 99.9 % PURITY
264 7407.1090 - - - OTHER 10 7 5
- - - CAPILLARY TUBE OF
265 7411.1010 5 5 5
DIAMETER UPTO 2.25 MM
- - - INTERNALLY GROOVED
266 7411.1020 TUBES 5 5 5
267 7411.1090 - - - OTHER 10 7 5
268 8424.8900 - - OTHER 5 5 5
- - - OF A CAPACITY NOT
269 8427.2010 5 5 5
EXCEEDING 3 TON
270 8427.2090 - - - OTHER 5 5 5
- - - FOR SUGARCANE
271 8438.3010 5 5 5
CRUSHERS
272 8438.3090 - - - OTHER 5 5 5
273 8438.4000 -BREWERY MACHINERY 10 7 5
-FOR WEAVING FABRICS OF A
274 8446.1000 10 7 5
WIDTH NOT EXCEEDING 30CM
275 8446.2100 - - POWER LOOMS 10 7 5
- - - SPINDLE FLYERS AND RING
276 8448.3310 5 5 5
TRAVELLERS
 275

277 8448.3320 - - - SPINDLES 5 5 5

278 8448.3330 - - - SPINNING RINGS 10 7 5
279 8448.4210 - - - REEDS 10 7 5
280 8448.4290 - - - OTHER 10 7 5
281 8474.3110 - - - FOR CEMENT INDUSTRY 5 5 5
- - - CONCRETE BATCHING
282 8474.3120 5 5 5
PLANT
- - - CONCRETE TRANSIT MIXER
283 8474.3130 5 5 5
DRUM
284 8474.3190 - - - OTHER 5 5 5
285 8474.3900 - - OTHER 5 5 5
- - - HYDRAULIC PRESS FOR
286 8474.8010 CERAMIC INDUSTRY OF 5 5 5
CAPACITY EXCEEDING 80 TONS
287 8474.8090 - - - OTHER 5 5 5
- - - FOR USE WITH THE
288 8484.2010 MACHINES/ COMPONENTS OF 20 10 5
VEHICLES OF CHAPTER 87
289 8484.2020 - - - METAL JACKETED GASKETS 5 5 5
290 8484.2090 - - - OTHER 5 5 5
- MACHINES AND APPARATUS
291 8486.1000 FOR THE MANUFACTURE OF 5 5 5
BOULES OR WAFERS
- MACHINES AND APPARATUS
FOR THE MANUFACTURE OF
292 8486.2000 SEMICONDUCTOR DEVICES OR 5 5 5
OF ELECTRONIC INTEGRATED
CIRCUITS
- MACHINES AND APPARATUS
293 8486.3000 FOR THE MANUFACTURE OF 5 5 5
FLAT PANEL DISPLAYS
294 8486.9000 - PARTS AND ACCESSORIES. 5 5 5
- - - ELECTRIC HEATING
ELEMENT FOR
295 8516.8010 REFRIGERATORS/POWER 10 7 5
CONDENSATION HEATER FOR
MOTORS
296 8516.8090 - - - OTHER 20 10 5
297 8517.1810 - - - VIDEO PHONES 10 7 5
298 8517.1890 - - - OTHER 10 7 5
- - - VOICE FEQUENCY
299 8517.6210 5 5 5
TELEGRAPHY
300 8517.6220 - - - MODEMS 5 5 5
- - - HIGH BIT RATE DIGITAL
301 8517.6230 5 5 5
HIERARCHY SYSTEM (SDH)
- - - DIGITAL LOOP CARRIER
302 8517.6240 5 5 5
SYSTEM (DLC)
303 8517.6250 - - - SYNCHRONOUS DIGITAL 5 5 5
 276

HIERARCHY SYSTEM (SDH)

- - - MULTIPLEXERS,
304 8517.6260 5 5 5
STATISTICAL MULTIPLEXERS
305 8517.6290 - - - OTHER 10 7 5
306 8517.6910 - - - ISDN SYSTEM 5 5 5
- - - ISDN TERMINAL
307 8517.6920 5 5 5
ADAPTERS
308 8517.6930 - - - ROUTERS 0 0 0
- - - SUBSCRIBER END
309 8517.6940 5 5 5
EQUIMENT
- - - SET TOP BOXES FOR
310 8517.6950 5 5 5
GAINING ACCESS TO INTERNET
- - - ATTACHEMENTS FOR
311 8517.6960 5 5 5
TELEPHONES
- - - NETWORKING
EQUIPMENTS LIKE LAN
312 8517.6970 0 0 0
BRIDGES, HUBS, SWITCHES
AND REPEATERS
- - - MULTI-STATION ACCESS
313 8517.6980 0 0 0
UNITS
314 8517.6990 - - - OTHER 5 5 5
- - - DUBBING SYSTEM OF A
315 8519.8110 KIND USED IN FILM STUDIOS 5 5 5
AND PRODUCTION HOUSES
316 8519.8190 - - - OTHER 10 7 5
317 8521.1010 - - - V.C.R. 10 7 5
318 8521.1020 - - - V.C.P. 10 7 5
319 8521.1090 - - - OTHER 10 7 5
320 8521.9010 - - - LASER VIDEO DISC PLAYER 10 7 5
321 8521.9090 - - - OTHER 10 7 5
- - - BLUE TOOTH WHETHER
OR NOT CAPABLE OF
322 8525.6010 CONNECTING TO AN 5 5 5
AUTOMATIC DATA PROCESSING
MACHINE
323 8525.6020 - - - RADIO PAGING APPARATUS 5 5 5
324 8525.6030 - - - WALKIE TALKIE SET 10 7 5
325 8525.6040 - - - VSAT TERMINALS 10 7 5
- - - OTHER SATELLITE
326 8525.6050 COMMUNICATION 10 7 5
EQUIPMENT

- - - VEHICLE TRACKING
327 8525.6060 5 5 5
SYSTEM
328 8525.6070 - - - MODEMS 5 5 5
329 8525.6090 - - - OTHER 10 7 5
 277

330 8528.7300 - - OTHER, MONOCHROME 20 10 5

331 8532.2100 - - TANTALUM 10 7 5
- - CERAMIC DIELECTRIC,
332 8532.2400 10 7 5
MULTILAYER
333 8536.4900 - - OTHER 5 5 5
- - PROCESSORS AND
CONTROLLERS, WHETHER OR
NOT COMBINED WITH
334 8542.3100 MEMORIES, CONVERTERS, 5 5 5
LOGIC CIRCUITS, AMPLIFIERS,
CLOCK AND TIMING CIRCUITS,
OR OTHER CIRCUITS
335 8542.3200 - - MEMORIES 5 5 5
336 8542.3300 - - AMPLIFIERS 5 5 5
337 8542.3900 - - OTHER 5 5 5
338 8713.9000 -OTHER 5 5 5
-OF CARRIAGES FOR DISABLED
339 8714.2000 5 5 5
PERSONS
340 9403.8100 - - OF BAMBOO OR RATTAN 20 10 5”.
_______________
 278

Annex C
Budget /Allocations for Social Sectors
Federal Budget [FY 2013-14] at a glance
Rs. in billion

RECEIPTS EXPENDITURE

Tax Revenue* 2,598 A. CURRENT 2,829

Non-Tax Revenue 822 Interest Payment 1,154

a) Gross Revenue Receipts 3,420

b) Less Provincial Share 1,502 Pension 171

I. Net Revenue Receipts (a-b) 1,918 Defence Affairs & Services 627

II. Net Capital Receipts (Non Bank) 507 Grants and Transfers 337

III. External Receipts (net) 169 Subsidies 240

IV. Estimated Provincial Surplus 23 Running of Civil Government 275

Provision for Pay & Pension 25

V. Bank Borrowing 975 B. DEVELOPMENT 762

Federal PSDP 540

Net Lending 50

Other Dev. Expenditure 172

TOTAL RESOURCE (I to V) 3,591 TOTAL EXPENDITURE (A+B) 3,591

*Out of which FBR Taxes: Rs 2,475 billion

 279

Pakistan: Expenditure on Social Sector (Rs.

billion)
Pakistan Budget Estimate Budget Revised 2012-13 Budget Estimate 2013-14

2012-13

Education 484.1 471.0 585.7

Health 136.9 137.4 194.9

Social Protection 121.3 79.0 90.7

Benazir Income Support Program 60.0 58.0 75.0

Housing and Community 63.0 85.8 71.0

Population Planning 24.0 30.9 26.6

Recreation, Culture and Religion 13.6 15.2 15.1

Environment Protection 9.8 12.0 8.5

Total Social Services 931.4 960.5 1,070.2

Education as % of GDP 2.0 2.1 2.2

Health as % of GDP 0.6 0.6 0.7

Social sector as % of GDP 3.9 4.2 4.1

Social sector as % of total budget 17.6 17.7 16.9

 280

Federal: Expenditure on Social Sector (Rs.

billion)
Budget Revised Budget

2012-13 2012-13 2013-14

Education 65.3 69.7 80.5

Benazir Income Support Programme 60.0 58.0 75.0

Health 9.4 11.7 37.2

Population Planning 14.5 21.9 19.2

Recreation, Culture and Religion 5.7 6.1 6.5

Housing and Community Amenities 4.6 4.2 5.7

Social Protection 12.3 14.3 2.9

Environment Protection 0.9 1.8 1.1

Total Social Services 172.7 187.7 228.2

As a % of Total Budget 5.4 5.4 5.7

 281

Punjab: Expenditure on Social Sector (Rs.

billion)
Budget Estimate Budget Revised Budget Estimate
2012-13 2012-13 2013-14

Education 176.9 167.0 201.4

Health 55.1 52.2 65.1

Housing and Community 34.3 59.3 40.1

Amenities

Social Protection 4.5 8.2 5.0

Recreation, Culture and 2.5 3.5 3.5

Religion

Population Planning 3.0 2.4 2.6

Environment Protection 0.4 0.1 0.3

Total Social Services 276.8 292.7 317.9

As a % of Expenditures 26.3 29.3 26.3

 282

Sindh: Expenditure on Social Sector (Rs.

billion)
Budget Estimate Budget Revised Budget Estimate
2012-13 2012-13 2013-14

Education 115.8 116.1 140.0

Social Protection 89.2 43.7 67.6

Health 45.7 48.6 53.4

Housing and Community 4.5 3.7 5.3

Amenities

Environment Protection 1.8 2.7 2.8

Recreation and Culture 3.1 3.4 2.3

Population Planning 0.4 1.2 1.1

Total Social Services 260.5 219.4 272.6

As a % of Expenditures 45.1 43.5 44.2

 283

Khyber Pakhtunkhaw: Budget Expenditure on

Social Sector (Rs billion)
Budget Budget Budget

Estimate 2012-13 Revised 2012-13 Estimate 2013-14

Education 100.3 92.4 116.2

Health 15.5 14.2 27.4

Housing and Community Amenities 12.9 12.3 15.1

Social Protection 6.9 8.4 11.6

Environment Protection 4.5 5.0 3.7

Recreation, Culture and Religion 1.2 1.3 1.5

Population Planning 1.2 1.1 1.3

Total Social Services 142.7 134.7 176.8

As a % of Expenditures 47.1 45.3 51.4

 284

Balochistan: Expenditure on Social Sector

(Rs. billion)
Budget Budget Budget

Estimate 2012-13 Revised 2012-13 Estimate 2013-14

Education 25.8 25.8 47.6

Health 11.2 10.7 11.8

Housing and Community Services 6.6 6.3 4.8

Social Protection 8.4 4.4 3.6

Population Planning 5.0 4.2 2.4

Recreation, Culture and Religion 1.1 0.8 1.3

Environment Protection 2.2 2.4 0.6

Total Social Services 60.3 54.6 72.0

As a % of Expenditures 42.1 39.4 44.6

Source: Economic Surveys of Pakistan

 285

Annex D
FBR’s Performance (1996-97 to 2013-14)

(Rs. in billions)
Growth in Target Tax to GDP
Year Targets Collection
Collection (%) Achieved (%) ratio

1996-97 286.0 282.1 5.2 98.6 11.6

1997-98 297.6 293.6 4.1 98.7 11.0

1998-99 308.0 308.5 5.1 100.2 10.5

1999-00 351.7 347.1 12.5 98.7 9.1

2000-01 406.5 392.3 13.0 96.5 9.3

2001-02 414.2 404.1 3.0 97.6 9.1

2002-03 458.9 460.6 14.0 100.4 9.4

2003-04 510 520.8 13.1 102.1 9.2

2004-05 590 590.4 13.4 101.8 9.1

2005-06 690 713.4 20.8 103.4 9.4

2006-07 935 847.2 18.8 101.5 9.8

2007-08 1.000 1008.1 18.9 100.8 9.8

2008-09 1,179 1157.0 14.8 98.1 8.9

2009-10 1,380 1327.4 14.7 69.0 9.0

2010-11 1,667 1587.0 19.6 95.2 8.8

2011-12 1952.3 1883.0 18.2 96.5 9.1

2012-13 2007 1939.4 03.0 96.6 8.5

2013-14 2475 2266.0 15.0 99.6 8.2

Source: Economic Surveys & FBR Year Books

Annex E
 286

Part 1. Official Estimates of Tax Losses

Part 2. Estimates of Real Tax Potential
Part 1. Official Figures
Every year the government of Pakistan publishes in the annual Economic Survey the figure of
tax loss incurred due to exemptions granted. These do not represent the total exemptions and
waivers. Independent estimates are on the higher side [see study at the end of this
Annexure].

The official figures for fiscal year 2013-14 are:

Following is the consolidated summary of tax expenditure for the fiscal year 2013­14 
Tax Expenditure of Federal Taxes for 2013-14 (Rs. in billions)
S. No. Type of Tax 2013-14
1. Income Tax 96.6
2. Sales Tax 249.0
3. Customs Duty 131.5
Total: 477.1

Tax-wise summary is below:

Income Tax

Tax Expenditure of Direct Taxes during 2013-14 (Rs. in billions)

S. No. Tax Expenditure on various Exemptions and Concessions Estimated Revenue Loss 2013-14
1. Pensions and gratuity 1.000
2. Income from Funds, Boards of Education, Universities and Computer 11.100
Training Institutions.
3. Donations and contributions to Charitable Organisations 2.500
4. Independent Power Producers 52.030
5. Income from certain Trusts, Welfare and Charitable institutions non- 1.910
profitable organizations.
6. Profits on debt/interest from government securities and certain foreign 4.100
currency accounts/books profit on debt
7. Export of information technology 0.994
8. Capital gains 5.000
9. Other sectors and enterprise specific exemptions 18.000
Total: 96.634

Sales Tax
 287

Tax Expenditure of Sales Tax for 2013-14 (Rs. In billions)

SRO Loss of Sales Tax Due to
Exemptions
I. Export Facilitation Schemes
SRO 450(I)/2011(DTRE & MB) 14.0
SRO 326(I)/2008(EOU) 1.0
SRO492(I)/2009(Temp.same State) 4.0
Sub-Total 19.0
II. General and Sector Specific SROs
SRO 727(I)/2011 (Plant & Machinery) 14.0
SRO 1125(I)/2011 (concessionary rate of sales tax on raw materials, intermediary inputs 65.0
and finished goods relating to Textiles, Carpets, Leather, Sports & Surgical sectors).
SRO 549(I)/2008(zero% on specified goods) 94.0
SRO 575(I)/2006 (Machinery, Equipment, Apparatus and Items of Capital Goods) 30.0
SRO 551(I)/2008 (Exemption from ST on import & supply of certain items) 26.0
SRO 69(I)/2006 (levy of ST @ 14% on rapeseed) 1.0
Sub-Total 230.0
Grand Total (I+II) 249.0

Customs
Table-3: Cost of Customs Duty Exemption For FY 2012-13 And Estimated 2013-14 (Rs. In millions)
S.No. SRO No. with Date Description Cost of Exemption (estimated)
2013-14
1. 558(I)/2004 Concession of Customs Duty on goods imported from 290.3
01.07.2004 SAARC and ECO countries
2. 570(I)/2005 Exemption from Customs Duty on imports from Sri Lanka 732.6
06.06.2005
3. 1296(I)/2005 Exemption from Customs Duty on import into Pakistan 12.1
31.12.2005 from China
4. 894(I)/2006 Exemption from Customs Duty on import into Pakistan 22.3
31.08.2006 from Iran under Pak-Iran PTA.
5. 1274(I)/2006 Exemption from Customs Duty on imports into Pakistan 796.2
29.12.2006 from under SAFTA Agreement
6. 659(I)/2007 Exemption from Customs Duty on imports into Pakistan 21,464.1
30.06.2007 from China
7. 1151(I)/2007 Exemption from customs Duty on goods imported from 3.4
26.11.2007 Mauritius.
8. 1261(I)/2007 Exemption from Customs Duty on imports into Pakistan 2,909.1
31.12.2007 from Malaysia
9. 565(I)/2006 Conditional exemption of Customs Duty on import of raw 10,761.4
05.06.2006 materials and components etc. for manufacture of certain
 288

goods (Survey based)

10. 567(I)/2006 General and conditional exemption of Customs Duty (non 32,515.7
05.06.2006 survey)
11. 678(I)/2004 Exemption of Customs Duty and Sales Tax to Exploration 6,714.4
12.6.2004 and Production (E&P) companies on import of machinery
equipment & vehicles etc.
12. 575(I)/2006 Exemption from Customs Duty and Sales Tax on import of 21,780.3
05.06.2006 specified machinery, equipment, apparatus and items
13. 655(I)/2006 Exemption from Customs Duty for vendors of Automotive 11,471.1
22.06.2006 Sector
14. 656(I)/2006 Exemption from Customs Duty for OEMs of Automotive 17,823.4
22.06.2006 Sector
15. 809(I)/2009 Exemption of Machinery & Equipment, if imported by 2,646.7
19.09.2009 Textile Industrial Units
16. 741(I)/2013 Exemption from Customs Duty on imports into Pakistan 1,508.2
28.08.2013 from Indonesia under Pak-Indonesia PTA.
Total: 131,451.3

The government started publishing this data since 2007-2008. Figures for earlier years with
comparative analysis are given below:
FY 2008-2009
Table 4: Summary of Tax Expenditures (Rs. in billions)
Cost of Exemptions
Type of Tax % Change
2007-08 2008-09
1. Income Tax 27.66 40.864 47.74
2. Sales Tax 17.60 17.5 -0.57
3. Customs Duties 41.397 61.282 48.03
Total 86.657 119.646 38.1

2009-2010
Table 4: Tax Expenditure of Federal Tax for 2009–10 (Rs.in billions)
S.No. Type of Tax 2008–09 2009–10
1. Income Tax 40.864 46.534
2. Sales Tax 17.5 27.409
3. Customs Duties 61.282 73.197
Total 119.646 147.140
Source: Federal Board of Revenue

2010-2011
Table-4: Tax Expenditure of Federal Taxes for 2009-10 and 2010-11 (Rs. in billions)
S.No Type of Tax 2009-10 2010-11
1 Income Tax 46.534 46.508
2 Sales Tax 27.409 25.323
3 Customs Duties 76.348 94.941
 289

TOTAL: 150.291 166.772

2011-2012
Table-4: Tax Expenditure of Federal Taxes for 2010-11 and 2011-12 (Rs. in billions)
Tax Expenditure
S. No. Type of Tax
2010-11 2011-12
1 Income Tax 46.508 69.608
2 Sales Tax 33.762 24.300
3 Customs Duty 94.941 91.588
Total 175.211 185.496
Note: The estimates for 2010-11 are for the full year while for the year 2011-12, they pertain to
10 months i.e. 1.7.2011 to 30.4.2012.

2012-2013
Table 4: Tax Expenditure of Federal Taxes for 2011-12 and 2012-13 (Rs. in billions)
Tax Expenditure
S. No. Type of Tax
2011-12 2012-13
1. Income Tax 69.608 82.393
2. Sales Tax 24.300 37.436
3. Customs Duty 112.012 119.706
Total 205.920 239.535

Tax-wise break-up is as under:

INCOME TAX
2008-2009
Table 1: Income Tax Expenditure (Rs. in billions)
Estimated Revenue Loss
No. Major Income Tax Expenditure Items
2007-08 2008-09
1. Pensions 0.39 0.054
2. Allowances – 0.359
3. Income from Funds (e.g. NIT units) 0.22 0.828
4. Donations and Contributions to Charitable Organizations 1.74 0.517
5. Independent Power Producers 4.70 0.772
6. Income from certain Trusts, Welfare and charitable 0.92 1.050
institutions/non-profitable organization
7. Profits on debt/interest from government securities and 0.21 0.025
certain foreign currency accounts/books, profit on debt
earned by certain non-resident individuals and institutions
8. Income of Boards of Education, Universities & computer – –
training institutes
9. NSS interest income – –
10. Export of Information Technology 0.03 0.602
11. Other interest income – –
 290

12. Capital gains 18.48 18.760

13. Other sectors and enterprise specific exemptions 0.97 17.897
TOTAL: 27.66 40.864

2009-2010
Table 1: Income Tax Expenditure for 2009-10 (Rs. in billions)
Estimated Revenue Loss
S.No. Tax Expenditure Items
2008-09 2009-10
1. Pensions & Gratuity 0.0540 0.075
2. Income from Funds, Board of Education, Universities and 0.828 0.950
Computer Training Institutions
3. Donations and Contributions to Charitable Organizations 0.517 0.630
4. Independent Power Producers 0.772 0.852
5. Income from certain Trusts, Welfare and Charitable 1.050 1.350
institutions non–profitable organization.
6. Profits on debt/interest from government securities and 0.025 0.050
certain foreign currency accounts/books, profit on debt
earned by certain non–resident individuals and
institutions
7. Export of Information Technology 0.602 0.812
8. Capital gains 18.760 21.910
9. Other sectors and enterprise specific exemptions 17.897 19.905
Total: 40.505 46.534
Source: Federal Board of Revenue

2010-2011
Table-1: Income Tax Expenditure for 2009-10 and 2010-11 (Rs in billions)
Estimated Revenue Loss
S.No Tax Expenditure Items
2009-10 2010-11
1 Pensions & Gratuity 0.075 0.087
2 Income from Funds, Boards of Education, Universities and 0.950 0.979
Computer Training Institutions
3 Donations and Contributions to Charitable Organizations 0.630 0.649
4 Independent Power Producers 0.852 0.870
5 Income from Certain Trusts, Welfare and Charitable 1.350 1.360
Institutions non-profitable Organization
6 Profits on debt/interest from government securities and 0.050 0.049
certain foreign currency accounts/books, profit on debt
earned by certain non-resident individuals and institutions.
7 Export of Information Technology 0.812 0.724
8 Capital gains 21.910 21.840
9 Other sectors and enterprise specific exemptions. 19.905 19.950
TOTAL: 46.534 46.508

2011-2012
Table-1: Income Tax Expenditure for 2010-11 and 2011-12 (Rs. in billions)
 291

Estimated Revenue Loss

S.No Tax Expenditure Items
2010-11 2011-12
1. Pensions & Gratuity 0.087 0.171
2. Income from Funds, Boards of Education, Universities and 0.979 6.077
Computer Training Institutes etc.
3. Donations and Contributions to Charitable Organizations 0.649 0.624
4. Independent Power Producers 0.870 46.939
5. Income from certain Trusts, Welfare and Charitable 1.360 0.205
Institutions and Non-Profit Organizations
6. Profits on debt/interest from government securities and 0.049 1.461
certain foreign currency accounts/books, profit on debt
earned by certain non-resident individuals and institutions
7. Export of Information Technology 0.724 0.822
8. Capital Gains 21.840 2.108
9. Other sectors/enterprise specific exemptions 19.950 11.201
Total 46.508 69.608

2012­2013
Table 1: Tax Expenditure of Direct Taxes during 2011-12 and 2012-13 (Rs. in billions)
S. Tax Expenditure on various exemptions and concessions Estimated Estimated
No. Revenue Revenue
Loss 2011- Loss 2012-
12 13
1 Pensions & Gratuity 0.171 0.800
2 Income from Funds, Board of Education, Universities and 6.077 9.100
Computer Training Institutions
3 Donations and Contributions to Charitable Organisations 0.624 1.300
4 Independent Power Producers 46.939 48.600
5 Income from Certain Trusts, Welfare and Charitable 0.205 0.600
institutions non-profitable organisations
6 Profits on debt/interest from government securities and 1.461 2.000
certain foreign currency accounts/books, profit on debt
7 Export of Information Technology 0.822 0.993
8 Capital gains 2.108 4.000
9 Other sectors and enterprise specific exemptions 11.201 15.000
Total 69.608 82.393
 292

SALES TAX
2008-2009
Table 2: Sales Tax Expenditure (Rs. in billions)
Estimated Revenue Loss
No. Major Sales Tax Expenditure Items
2007-08 2008-09
1. Pharmaceutical (excluding life saving drugs) 2.30 3.1
2. Tractors and other agriculture machinery. 5.60 5.7
3. Fertilizers 9.20 8.20
4. Others (e.g. agri seeds, cattle feed) 0.50 0.50
TOTAL: 17.60 17.5

2009­2010
Table 2: Tax Expenditure of Sales Tax for 2009-10 (Rs. in billions)
S.No Sector Estimated Revenue Loss
.
2008-09 2009-10
1. Fertilizer 8.20 8.797
2. Tractors 5.7 6.246
3. Pharmaceutical products 3.1 3.754
4. Others 0.50 8.612
Total: 17.5 27.409
Source: Federal Board of Revenue

2010-2011
Table-2: Tax Expenditure of Sales Tax for 2009-10 and 2010-11 (Rs in billions)
S.No Sector Estimated Revenue Loss
2009-10 2010-11
1 Fertilizer 8.797 6.854*
2 Tractors 6.246 4.867*
3 Pharmaceutical Products 3.754 4.129
4 Other 8.612 9.473
TOTAL: 27.409 25.323
*Cost of exemptions from 01-07-2010 to 14-03-2011

2011-2012
Table-2: Tax Expenditure of Sales Tax for 2010-11 and 2011-12 (Rs in billions)
S.No Sector Estimated Revenue Loss
2010-11 2011-12
1. Fertilizer 9.138 0
2. Tractors 6.489 4.280
3. Pharmaceutical Products 5.505 5.800
4. Others 12.630 14.220
 293

Total: 33.762 24.300

2012-2013
Table 2: Tax Expenditure of Sales Tax for 2011-2012 and 2012-13 (Rs in billions)
S.No Sector Estimated Revenue Loss
2011-12 2012-13
1. Tractor (Partially Exempt) 4.280 2.140
2. Pharmaceutical products 5.800 7.076
3. Sugar( partially Exempt) – 12.000
4. Other 14.220 16.220
Total 24.300 37.436

CUSTOMS
2008-2009
Table 3: Exemptions in Customs Duties (Rs. in Million)
S. # SRO No. & Date Description Estimated Revenue Loss
2007-08 2008-09
1. 410(I)/2001, Conditional Exemption of customs duty 1.838 2.335
dated 18.6.2001 and sales tax on temporarily imported
goods for subsequent exportation.
2. 456(I)/2004, Conditional exemption of customs duty 2.949 2.839
dated 12.6.2004 on import of raw materials and
Superseded by components etc. for manufacture of
565(I)/2005, certain goods (Survey Based)
Dated 05-06-2006
3. 567(I)/2005, General and conditional exemption of 5.869 18.121
dated 06.6.2005 customs duty (non Survey)
Superseded by
567(I)/2006,
Dated 05-06-2006
4. 678(I)/2004, Exemption of customs duty and sales tax 2.239 4.401
dated 12.6.2004 to Exploration and Production (E&P)
companies on import of machinery.
5. 570(I)/2005, Concession of customs duty on goods 0.022 0.036
dated 06.6.2005 imported from Sri Lanka.
6. 575(I)/2005, Exemption from customs duty and sales 9.139 11.189
dated 06.6.2005 tax on import of specified machinery,
Superseded by equipment, apparatus and items
575(I)/2006,
Dated 05-06-2006
7. Other SROs 19.341 22.361
Total : 41.397 61.282

2009-2010
Table 3: Tax Expenditure of Customs for 2009-10 (Rs. in Million)
S. # SRO No. & Date Description Estimated Revenue Loss
2008-09 2009-10
1 410(1)/2001, Conditional exemption of customs duty 2.335 2.525
dated 18.6.2001 and sales tax on temporarily imported
 294

Superseded by goods for subsequent exportation.

1065(1)/2005,
dated 20.10.2004
then superseded
by 492(1)/2009.
2 456(1)/2004, Conditional exemption of customs duty 2.839 3.822
dated 12.6.2004 on import of raw materials and
Superseded by components etc. for manufacture of
565(1)/2005 certain goods (Survey based)
dated 6.6.2005
then superseded
by 565(1)/2006,
dated 5.6.2006
3 567(1)/2005, General and conditional exemption of 18.121 21.299
dated 6.6.2004 customs duty (non survey)
Superseded by
567(1)/2006
dated 5.6.2006
4 678(1)/2004, Exemption of customs duty and sales tax 4.401 5.117
dated 12.6.2004 to exploration and production(E&P)
companies on import of machinery
equipment & vehicles etc.
5 570(1)/2005, Concession of customs duty on goods 0.036 0.153
dated 6.6.2005 imported from Sri Lanka.
6 575(1)/2005, Exemption from customs duty and sales 11.189 11.555
dated 6.6.2005 tax on import of specified machinery,
Superseded by equipment, apparatus and items.
575(1)/2006
dated 5.6.2006
7 Others SROs 22.361 28.726
Total: 61.282 73.197
Source: Federal Board of Revenue

2010-2011
Table-3: Tax Expenditure of Customs for 2009-10 and 2010-11 (Rs in billion)
SRO No. & Description Estimated Revenue Loss
DATE 2009-10 2010-11
558(I)/2004 Concession of customs duty on goods imported from 0.104 0.073
01-07-2004 SAARC and ECO countries.
570(I)/2005 Exemption from customs duty on imports from Sri 0.152 0.148
06-06-2005 Lanka
1296(I)2006 Exemption from customs duty on imports from 0.073 0.031
31-12-2005 China
894(I)2006 Exemption from customs duty on imports from Iran 0.005 0.004
31-08-2006 under Pak-Iran PTA.
1274(I)2006 Exemption from customs duty on imports under 0.090 0.116
29-12-2006 SAFTA Agreement.
659(I)2007 Exemption from customs duty on imports from 6.069 10.867
 295

30-06-2007 China.
1151(I)2007 Exemption from customs duty on goods imports – –
26-11-2007 from Mauritius
1261(I)2007 Exemption from customs duty on imports from 2.221 2.895
31-12-2007 Malaysia.
71(I)/95 19- Concession of customs duty on import of raw 0.001 –
01-1995 materials for manufacture of goods by such
industries in special industrial zones
565(I)2006 Conditional exemption of customs duty on import of 4.315 4.653
05-06-2006 raw materials and components etc. for manufacture
of different sectors.
567(I)2006 General and conditional exemption of customs duty. 22.566 30.277
05-06-2006
678(I)2004 Exemption of customs duty and sales tax to Oil 4.831 2.581
12-06-2004 Exploration and Production (E&P) companies on
import of machinery equipment & vehicles
575(I)2006 Exemption of customs duty and sales tax on import 11.980 13.712
05-06-2006 of machinery, equipment, apparatus and items.
655(I)2006 Exemption from customs duty for vendors of 4.933 9.315
22-06-2006 Automotive Sector.
656 (I)2006 Exemption from customs duty for OEMs of 18.378 19.073
22-06-2006 Automotive Sector.
809(I)2009 Exemption from customs duty on import of 0.630 1.196
19-09-2009 machinery & equipment by Industrial units
registered with Ministry of Textile Industry.
TOTAL: 76.348 94.941

2011-2012
Table-3: Tax Expenditure of Customs Duty for 2010-11 and 2011-12 (Rs in billion)
SRO No. & Tax Expenditure Items Estimated Revenue Loss
date 2010-11 2011-12
558(I)/2004 Concession of Customs Duty on goods imported 0.073 0.055
01-07-2004 from SAARC and ECO countries.
570(I)/2005 Exemption from Customs Duty on imports from Sri 0.148 0.196
06-06-2005 Lanka
1296(I)/200 Exemption from Customs Duty on imports from 0.031 0.0002
6 31-12- China
2005
894(I)/2006 Exemption from Customs Duty on imports from Iran 0.004 0.0009
31-08-2006 under Pak-Iran PTA
1274(I)/200 Exemption from Customs Duty on imports under 0.116 0.151
6 29-12- SAFTA agreement
2006
659(I)/2007 Exemption from Customs Duty on imports from 10.867 13.762
30-06-2007 China
1261(I)/200 Exemption from Customs Duty on imports from 2.895 2.750
7 31-12- Malaysia
2007
565(I)/2006 Conditional exemption of Customs Duty on import 4.653 7.391
05-06-2006 of raw materials and components etc. for
manufacturers of different sectors.
 296

567(I)/2006 General and conditional exemption of Customs 30.277 21.830

05-06-2006 Duty.
678(I)/2004 Exemption of Customs Duty and Sales Tax to Oil 2.581 2.810
12-06-2004 Exploration and Production (E&P) companies on
import of machinery equipment & vehicles
575(I)/2006 Exemption of Customs Duty and Sales Tax on 13.712 9.833
05-06-2006 import of machinery, equipment, apparatus and
other items
655(I)/2006 Exemption from Customs Duty for vendors of 9.315 12.851
22-06-2006 Automotive Sector
656(I)/2006 Exemption from Customs Duty for OEMs of 19.073 19.196
22-06-2006 Automotive Sector
809(I)/2009 Exemption from Customs Duty on import of 1.196 0.756
19-09-2009 machinery & equipment by Industrial units
registered with Ministry of Textile Industry
Total 94.941 91.588

2012-2013
Table 3: Tax Exemption of Customs Duty for 2011-12 and 2012-2013 (Rs in billion)
S.No SRO No. & Description Estimated Revenue
Date Loss
2011-12 2012-13
1. 558(1)/2004 Concession of customs duty on goods imported 92.7 121.9
01.07.2004 from SAARC and ECO countries (FTA)
2. 570(1)2005 Exemption from customs duty on imports from 388.5 634.6
06.06.2005 Sri Lanka (FTA)
3. 1296(1)2005 Exemption from customs duty on import into 6.7 1.3
31.12.2005 Pakistan from China
4. 894(1)2006 Exemption from customs duty on import from 1.3 3.1
31.08.2006 Iran under Pak-Iran PTA
5. 1274(I)/200 Exemption from customs duty under SAFTA 183.8 494.2
6 29.12.2006 Agreement
6. 659(I)/2007 Exemption from customs duty on import from 19,510.3 21,932.2
30.06.2007 China (FTA)
7. 1151(I)/200 Exemption from customs duty on goods 0.0 0.0
7 26.11.2007 imported from Mauritius
8. 1261(I)/200 Exemption from customs duty on import into 3,076.8 2,753.3
7 31.12.2007 Pakistan from Malaysia
9. 565(I)/2006 Conditional Exemption from customs duty on 8,159.1 9160.0
05.06.2006 import of raw materials and components etc. for
manufacture of certain goods (Survey based)
10. 567(I)/2006 General and Conditional Exemption of customs 26,276.4 28,138.9
05.06.2006 duty (non survey)
11. 678(I)/2004 Exemption from customs duty and sales tax to 3,411.6 6,110.3
12.06.2004 Exploration and Production (E&P) companies on
import
 297

12. 575(I)/2006 Exemption from customs duty and sales tax on 15,239.8 18,506.3
05.06.2006 import of specified items
13. 655(I)/2006 Exemption from customs duty for vendors of 13,578.1 11,052.3
22.06.2006 Automotive sector
14. 656(I)/2006 Exemption from customs duty for OEMs of 20,613.1 19,302.1
22.06.2006 Automotive sector
15. 809(I)/2009 Exemption from customs duty for Textile 1,473.7 1,495.8
19.09.2009 Industry
Total 112,011.9 119,706.3

Source: Economic Survey of Pakitan 2007-2014

http://www.finance.gov.pk/
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Part 2. Independent Estimates of Tax Gap & Real Tax Potential

Hafiz A. Pasha and Aisha Ghaus-Pasha, known economists, presented a comprehensive estimation of tax
expenditures in Pakistan, inclusive of both federal and provincial taxes. In the following Table, they claim
that “these estimates are almost three times the official estimates, at PRs 550 billion in 2010/11, which is
equivalent to 3 percent of GDP”65.

Table: Major tax expenditures in Pakistan

Tax/head Tax Percentage

expenditure share

(PRs billion)

Federal 466 83

Direct taxes 164 30

Exemptions 46

Deductions/allowances 88

Concessionary tax rates 30

General sales tax on goods 91 16

Exemptions 70

Zero rating 21

General sales tax on services 64 12

Exemptions 64

Custom duties 136 25

Exemptions 44

SROs 80

FTAs 12

Excise duty 11 -

Exemption of luxury goods 11

Provincial 95 17

65
The Future Path of Tax Reforms in Pakistan, Hafiz A. Pasha and Aisha Ghaus Pasha;
http://lahoreschoolofeconomics.blogspot.com/2013/12/the-future-path-of-tax-reforms-in.html
 299

Agricultural income tax 50

Urban immoveable property 30

tax

Capital gains tax 15

Total 561 100

As percentage of revenues 34

As percentage of GDP 3
 300

Working of Tax Gap in Pakistan66

A country’s tax gap is measured by the amount of tax that remains uncollected due to non-compliance
with tax laws. ‘Pakistan Tax Gaps: Estimates by Tax Calculation and Methodology,’ a joint study of
Federal Board of Revenue (FBR), Andrew Young School of Policy Studies at Georgia State University and
World Bank, provides in detail, tax gaps by types of tax and describes the methodologies and data used
for such estimates. The report released in December 2008 under the name of Rubina Ather Ahmad (FBR)
and Mark Rider (Andrew School) warns that views expressed “are of the authors and not of the
Government of Pakistan.” It is shocking that on the dictates of World Bank, FBR initiated this study and
when final report was released it disassociated itself—this is typical of our government—always non-
committal and hesitant to take any responsibility. After disowning this report in 2011, FBR is still
struggling to bridge the large tax gaps which are the direct results of its persistent inefficiency,
incompetence and rampant corruption.

According to this report, for fiscal year 2004-2005 Pakistan’s federal tax gap was Rs. 409.5 billion or
approximately 69% of actual tax receipts of Rs. 590.4 billion. Terming this as “conservative estimate”, the
report claims direct tax gap at Rs. 262.8 billion (around 143% of actual collection of Rs. 183.1 billion) and
indirect tax gap at 146.7 billion (36% of actual tax collection of Rs. 407 billion). In 2008, the data selected
was for fiscal year 2004-2005 and tax gap was estimated at 45%. Since then tax gap has increased
significantly and it can safely be concluded that it is not less that 70% of actual tax collection. This report
and many others do not take into account the real tax potential of Pakistan and therefore
approximations of tax gaps are underestimated.

The existing exploitative, rotten, regressive, ill-directed and unfair tax system is widening the existing gulf
between the rich and the poor—this would ultimately lead to civil commotions and break-down of the
entire society. The sole emphasis on regressive indirect taxes [even under the garb of income taxation
through presumptive and minimum tax regimes on goods and services] without evaluating their impact
on the economy and lives of poor masses coupled with lack of political will to tax the rich and the mighty
is the real dilemma of our State—not scarcity of resources or narrow tax base (millions of mobile users
are paying exorbitant sales tax at 19.5% and 14% income tax). Equity demands higher taxes from those
who have higher income and wealth, but in Pakistan since 1991 all tax policies have been aimed at
decreasing tax burden on the rich but increasing its incidence on the poor.

The realistic and correct working of tax gaps in Pakistan is not possible unless the quantum of revenue
loss of trillions of rupees caused by all the governments since Ziaul Haq’s era—civil and military alike—is
not taken into account. Successive governments have extended unprecedented exemptions and
concessions to the rich and the mighty, some of which are mentioned below:

 Ziaul Haq abolished all progressive taxes e.g. Estate Duty, Gift Tax, Capital Gain Tax etc.

66
How to bridge huge tax gaps? Business Recorder, April 15, 2011
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 The historic decision of taxing “agricultural income,” passed by the Federal Parliament in the
shape of Finance Act, 1977, was thwarted by the military regime of Ziaul Haq. Through this law,
the Parliament amended the definition of “agricultural income” as contained in section 2(1) of
the Income Tax Act, 1922 (then in existence), to tax big absentee landlords. This was a
revolutionary step to impose tax on agricultural income for the first time in Pakistan, but foiled
by a military dictator, supported by Mullahs, who were funded by big landlords and
businessmen. It is now well-established that pro-people economic policies of the Bhutto regime
posed a great threat to neo-imperialists and their gumashtas in Pakistan.
 Zia’s legacy continued for long 11 years and that of General Musharraf for nearly 9 years, but
absentee land owners (including mighty generals who received state lands as gallantry awards or
otherwise!) did not pay a single penny as agricultural income tax.
 Taxation of “agricultural income” is the sole prerogative of provincial governments under the
1973 Constitution of Pakistan (“the Constitution”). All the four provinces have enacted laws to
this effect, but total collection in 2010 was only less than Rs. 2.5 billion against actual potential
of Rs. 200 billion (share of agriculture in GDP in 2010 was about 22%).
 Non-taxation of capital gains at stock market—exemption is meant for the rich and the mighty
and not the small investors who lose more money than what they make due to manoeuvrings of
big players—caused annual loss of billions of rupees to the national exchequer till 2010 [loss
from 2007 to 2010 alone was Rs. 412 billion as admitted by the government in Economic Surveys
of Pakistan]. Despite, this so-called tax incentive, market crashed many a times and billions of
rupees of the small investors were gobbled up by big fish—once small brokers are now owners
of many banks and investment companies and bid for vital national assets when privatization
offers are made! In the current tax year a nominal tax is imposed on capital gains if holding is
less than a year and that too as a separate block of income. Full and proper taxation of big sharks
is still a distant dream due to influence of the mighty whose benami accounts are managed by
big brokerage houses. Annual tax gap under this one head alone is Rs. 125-200 billion.
 Tax losses for exempting (in fact not taxing) speculative transactions in real estate are to the
extent of billions of rupees per annum. According to Economic Survey of Pakistan 2009-10, the
loss for fiscal year 2009-10 was Rs. 700 billion.
 Multi National Companies (MNcs) through abusive transfer pricing mechanism deprive Pakistan
of tax loss of over Rs. 200 billion every year.
 Wealth Tax Act, 1963 was abolished through the Finance Act 2003 on specific demand of
Shaukat Aziz before taking charge as Finance Minister of Pakistan. He was fully aware of the fact
that by virtue of his status as resident in Pakistan, his world assets would attract provisions of
the Wealth Tax Act culminating into substantial tax liability annually. Repeal of this progressive
law, especially suitable to Pakistan where enormous assets are created without declaring
income, was shown to be justified despite tremendous revenue losses, distortion in the social
set-up and the resultant misery inflicted on the majority of the people of Pakistan.
 Before its abolition in 2003, wealth tax was the only progressive tax left in Pakistan with
tremendous potential for growth, if exemptions given to rich absentee landlords were scrapped.
This became obvious immediately after its repeal when billions of rupees (estimated at US$ 60
billion) started pouring in from all over the world remitted by all and sundry without any fear of
being investigated, courtesy amnesty given under section 111(4) of the Income Tax Ordinance,
2001. Influx of enormous wealth was directed to the stock exchanges and real estate market
 302

where hungry sharks continued to devour the small investors through unholy manoeuvrings; or
was used to artificially enhance prices of immovable property. With no wealth tax to pay, both
these avenues helped to increase individual wealth but dreadfully stripped the entire nation of
its right to live in peace and economic prosperity.
 According to a conservative estimate, from 2003 to date we have lost Rs. 400 to 500 billion
worth of wealth tax that could have been imposed on unaccounted/untaxed wealth amassed by
those already enjoying the privileges of a luxurious life.
 Section 111(4) of the Income Tax Ordinance, 2001 protects tax evaders as they can whiten
untaxed income through an extremely simple and easily available procedure by going to a
money exchanger and getting fictitious foreign remittance in his account after paying a nominal
premium of 1% to 2% of the entire proceeds! The loss caused due to this provision alone in the
last five years is nearly Rs. 275 billion.
 In the last three years alone, revenue loss on account of taxing income from property at reduced
rate is estimated at Rs. 480 billion.
The above are just a few areas showing how much tax loss we have been incurring perpetually since
1977. In ‘Pakistan Tax Gaps: Estimates by Tax Calculation and Methodology,’ no effort was made to take
into account all these factors to correctly determine total federal tax gap.
The Pakistani State does not need any borrowing at all, if the rich and mighty are taxed according to the
established norms of democratic dispensation of justice.
The poor and helpless masses of Pakistan desperately owe explanation from all those in power:

 Why the privileged are continuously being favoured and are thriving on the money collected as
“tax” (sic) from their own poorer brethren?
 Why it is that ordinary taxpayers having income of more than Rs. one million are required to
submit annual wealth statements whereas rich and mighty politicians, who have exempt
agricultural incomes, have not yet made public their declarations of assets?
 Why do they hesitate from paying wealth tax but charge taxes and levies of Rs.32 per litre on
petroleum products knowing very well that these are consumed by the general masses?
 Why not subsidize the poor and make good the loss by levy of wealth tax on the rich?
 Why not monetize all perks and perquisites of government employees and those working in
state-owned corporations and force them to live amongst the common people rather than in
fortified (cordoned off) Government Officers’ Residences (GPRs) and palatial houses?
 Why not curtail unnecessary and extravagant expenses on the civil-military establishment
starting from the President House, to fill up the void?
 Why not reduce the number of ministers/advisers instead of following policy of appeasement
and doling out public offices as if this nation was not burdened enough by worthless and
incompetent bureaucrats?
 303

Based on above facts and figures, Pakistan’s revenue potential is not less than Rs. 6 trillion. According to
Household Integrated Economic Survey (HIES) 2011-12 conducted by Pakistan Bureau of Statistics 67 at
least 5 million individuals have annual taxable income of Rs 1.5 million. If all of them file tax returns,
income tax collection from them at the prevalent tax rates will be Rs. 1650 billion. If income tax
collected from corporate bodies, 6other non-individual taxpayers and individuals having income
between Rs. 400,000 to Rs. 1,000,000 is added, the gross figure would not be less than Rs. 3500
billion. FBR collected only Rs. 850 billion as income tax in the fiscal year 2013-2014. Similarly, due to
leakages in sales tax, federal excise and custom duties, the total collection is not more than 50% of
actual potential as admitted by study jointly conducted by Andrew Young School of Policy Studies at
Georgia State University and World Bank—see at next page. In fiscal year 2013-14, FBR collected Rs.
1400 billion under the head sales tax, federal excise and customs duties, which is very low. It should
have been at least Rs 2800-3000 billion. It is thus clear that target of Rs. 6 trillion is achievable
provided the mighty segments, identified above, are taxed according to their capacity, section 111(4) of
the Income Tax Ordinance, 2001 is abolished, number of tax filers are substantially increased, equitable
and rational policies are devised with the support of the masses, tax machinery is completely overhauled
and all exemptions and concessions available to the privileged sections of society are withdrawn. If taxes
are collected to this extent, Pakistan can become a self-reliant economy and easily move towards an
egalitarian State. This is the only way to get out of the present quagmires of “debt prison” and economic
subjugation.

67
http://www.pbs.gov.pk/content/household-integrated-economic-survey-hies-2011-12
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Table A
Discriminatory taxation
The following examples show how an individual having property income of Rs. 4
million for tax year 2013 enjoyed extraordinary tax benefit vis-à-vis same income
earned by a salaried person or earner of passive income from interest (it elucidates
discrimination in its worst form):

Tax on rental income of Rs. 4 million:

Tax on 1,000,000 PKR 57,500
@ 10% on 3,000,000 PKR 300,000
Total tax PKR 375,000

Tax for salaried person earning Rs. 4 million

Tax PKR 720,000
Extra tax burden: PKR 345,000
Both are taxed on gross income, but salaried person has to pay
PKR 345,000 extra on the same amount!

Tax for a person earning interest income of PKR 4 million

Tax @ 10% PKR 400,000
Though interest income is taxed at a flat rate, even he has to
pay PKR 25,000 more than a property owner!
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Table B
Poor enforcement indices of FBR

INCOME TAX RETURNS (T.Y. 2O13)

Companies AOPs Salaried Other Total

Individuals
persons

Returns Filed 23,179 39,837 313,005513,979 890,000

Tax paid in 315 28 50 56 433

billions

NTN holders 53,744 157,2873,333,038 3,544,069

%age filers 43% 25% 25% 25%

SALES TAX RETURNS (July 2013 to Feb 2014

Month Sales Tax Registered Persons Return Filers

July, 2013 156,993 96,553

Aug, 2013 158,179 96,780

Sep, 2013 159,728 98,786

Oct, 2013 160,672 96,365

Nov, 2013 161,623 95,871

Dec, 2013 162,763 97,286

Jan, 2014 163,926 93,376

PM’s TAX INCENTIVE PACKAGE

Response till 28.02.2014
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Returns files by dormant NTN Tax paidReturns filed by newTax paid in

holders taxpayers
in millions millions

3010 77.1 385 10.6

COMPARISON OF TAX COLLECTION IN 2013 WITH 2014 (28.02.2014)

Tax Head Tax Collection up to Collection Target up % Growth

28.02.2013 to 28.02.2014
(Billions) (Billions)

Income Tax 426 500 17.37%

Sales Tax 523 636 21.60%

Federal Excise 71 78 9.85%

Customs Duty 141 147 4.25%

Total 1161 1361 17.22%