SALIENT FEATURES
BUDGET 2023-24
SALES TAX ACT 1990
The proposed budgetary measures pertaining to Sales Tax for FY 2023-24
are:
RELIEF MEASURES:
1. Extension in exemption of sales tax to NMDs
(FATA/PATA) for another one year ending 30.06.2024.
2. Grant of exemption of sales tax on contraceptives and accessories.
3. Grant of exemption of sales tax on plant saplings,
combine harvesters, dryer for agricultural products, no-till-direct seeder,
planters, trans-planters, other planters and bovine semen.
4. Grant of exemption of sales tax on import of IT
equipment by exporters of IT and ITeS registered with Pakistan Software Export
Board.
REVENUE MEASURES:
5. Withdrawal of exemption of sales tax on edible
products sold in bulk under brand names or trademarks.
6. Enhancement in reduced rate of sales tax from 12%
to 15% on supplies made by the POS retailers dealing in leather and textile
products.
STREAMLINING MEASURES:
7. The requirement of shop area for tier-1 retailers is proposed to be withdrawn.
8. The Directorate General of Digital Invoicing and Analysis
is proposed to be renamed as Directorate General of Digital Initiatives.
9. The scope of penal action is proposed to be
enhanced by substituting the “cigarette packs” with “goods specified by the
Board”.
10. S. No. 12(xxv) of Fifth Schedule is proposed to be
amended by substituting the current description with the “Other drawing,
marking out or mathematical calculating instruments (geometry box) (PCT heading
9017.2000)”.
11. Scope of S. No. 21 of Fifth Schedule providing
zero-rating to exporter registered under Export Facilitation Scheme, 2021 is
proposed to be enhanced by inserting the word “commodities”.
12. For the purpose of clarification regarding
exemption of sales tax on transfusion sets not packed in the aluminum foil
imported in one consignment with the blood
bags, explanation is proposed under S. No. 121 of Table-1 of the Sixth
Schedule.
13. Omission of S. No. 159 and 160 of Table-1 of the
Sixth Schedule is proposed being redundant as the time bound exemption has
already expired on 31.12.2021.
HARMONIZATION MEASURES:
14. Production, transmission and distribution of
electricity is proposed to be excluded from the purview of sales tax in
accordance with the decision of National Tax Council.
