Sales Tax Act 1990 Important Proposed Amendments Budget of Pakistan 2023-24 through Finance Bill 2023

Sales Tax Act 1990 Important Proposed Amendments Budget of Pakistan 2023-24 through Finance Bill 2023

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 06.2024.
2. Grant of exemption of sales tax on contraceptives and
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
4. Grant of exemption of sales tax on import of IT equipment by exporters of IT and ITeS registered with Pakistan Software Export

REVENUE  MEASURES:

1. Withdrawal of exemption of sales tax on edible products sold in bulk under brand names or
2. Enhancement in reduced rate of sales tax from 12% to 15% on supplies made by the POS retailers dealing in leather and textile

STREAMLINING   MEASURES:

1. The requirement of shop area for tier-1 retailers is proposed to be
2. The Directorate  General  of  Digital  Invoicing  and  Analysis  is  proposed  to  be renamed as Directorate General of Digital
3. The scope of penal action is proposed to be enhanced by substituting the “cigarette packs” with “goods specified by the Board”.
4. 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)”.
   
5. Scope of 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”.
6. 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 No. 121 of Table-1 of the Sixth Schedule.
7. Omission of 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:

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.