Budget 2014-15 Comments

FEDERAL BUDGET 2014-15
FINANCE BILL 2014

BRIEF COMMENTS
TARIQ MIAN RAMZAN ARSHAD & CO. Cost & Management Accountants
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Pakistan Budget 2014-15
PREFACE
This document has been prepared as a general guide for the benefit of our clients and is also
available to other interested persons upon request.
The sources of information to prepare this memorandum are; Economic Survey of Pakistan,
Budget in Brief 2014-15 and The Finance Bill 2014 as were available on the websites of Ministry
of Finance and Federal Board of Revenue, Government of Pakistan.
This memorandum is correct to the best of our knowledge and belief. However, this should not
be taken as legal text as it sets out interpretation of the significant amendments proposed by
the Finance Bill 2014 in tax laws etc. in a brief manner to assist the readers in understanding
important changes proposed in the Bill.
We hope that this memorandum will be beneficial for the readers in understanding the budget
proposals. It is suggested that the text of the Bill and the relevant notifications, where
applicable, be referred to in considering the interpretation of any provision of the law. Since
these are only general comments, no final decision on any issue may be arrived at without
further consideration. Specific professional advice should be sought before any action is taken.
TMRAC will not accept any responsibility in this regard.
We value your suggestions. Please e-mail us your questions and comments at
info@tmrc.com.pk
Contribution to compile the document by Following Members of TMRAC Team;
Tariq Mian Ramzan Arshad & Co.
Aatif Mehmood, Team Member

Jawad Ahmed, Team Member
M. Hassaan, Team Member
Abdul Wahab, Team Member, Tax and Corporate

Ayesha Shahid, Team Member, Audit and Accounts
Sadaf Humayun, Manager Tax and Corporate
Muhammad Naeem, Manager, Audit and Accounts
Muhammad Imran Malik, ACMA, Sr. Manager/Partner
Muhammad Arshad Bashir, FCMA, FPFA, Partner
M. Tariq Khurshid, FCMA,APA, Partner
Mian Muhammad Ramzan, FCMA, FPFA, ACFE, Partner
Cost and Management Accountants
Page 2
TABLE OF CONTENTS
PREFACE ................................................................................................................................................................................2
TABLE OF CONTENTS............................................................................................................................................................3
ECONOMIC REVIEW .............................................................................................................................................................4
BUDGET AT A GLANCE .........................................................................................................................................................6
BUDGET HIGHLIGHTS ........................................................................................................................................................ 10
LAYOUT FEATURES ........................................................................................................................................................................................10
INCOME TAX................................................................................................................................................................................................10
SALES TAX AND FEDERAL EXCISE ..........................................................................................................................................................13
CUSTOMS ACT.............................................................................................................................................................................................15
SALES TAX ACT, 1990 ........................................................................................................................................................ 17
FEDERAL EXCISE ACT, 2005 .............................................................................................................................................. 56
THE CUSTOMS ACT, 1969 ................................................................................................................................................. 57
INCOME TAX ORDINANCE, 2001.................................................................................................................................... 100
INCOME TAX RATES ...............................................................................................................................................................................113
OTHER LAWS.................................................................................................................................................................... 124
Page 3
ECONOMIC REVIEW
This was the first year of the present government and now she has presented its second budget.
Pakistans economy with lot of challenges including energy shortages is in the steady progress towards
the economic stability. While comparing the economic growth with the last couple of years it seems
good but not up to the mark. Pakistan achieved 4.14% growth which is indicator towards the right
direction. An over view is as under;
Pakistans performance and economic growth among South Asian countries has touched all
sectors of economy. Pakistan has made several contracts with China and other neighbor
countries in order to set a comprehensive plan of economic corridor between the two nations.
It will serve as driver for connectivity between South Asia and East Asia.
Agriculture sector plays role of back bone of Pakistans economy and has recorded a growth of
2.1 percent against the growth of 2.9 percent last year. The decline in its growth was due to
drop in cotton production and other minor crops due to extreme weather but somehow
compensated by the better output of rice, sugarcane, wheat and maize crops. The agriculture
sector accounts for 21.0 percent of GDP the sector has strong backward and forward linkages.
The agriculture sector has four subsectors including: crops, livestock, fisheries and forestry.
International Money market interaction towards Pakistan is also a positive signal towards the
economic stability and growth since last year. The positive response from international investor
to Pakistans first Sovereign Bond issuance has shown that the international market appreciated
the economic direction of the country. This transaction is Pakistans largest international
sovereign bond which attracted significant investment.
Entering into the new heights of technology by introducing 3G and 4G technologies in telecom
sector has opened trend of investment in Pakistan. The successful auction of 3G/4G spectrum
which has opened the new avenues of socio economic development in the country. The auction
for 3G/4G spectrum licenses were carried out in a transparent manner and the new technology
is expected to generate 900,000 new job opportunities in the next four years along with other
direct and indirect benefits to the economy.
The construction of roads, dams bridges and new housing sectors are also good indicators of
economic progress and growth and helps in conducting the strong economic activity which
benefits the whole economy, the sector has registered a growth of 11.31 percent against the
growth of (-) 1.68 percent of last year. This is also highest growth level achieved since 2008-09.
The increase in growth is due to rapid execution of work on various projects, increased
investment in small scale construction and rapid implementation of performance based
development schemes and other projects of federal and provincial governments.
Numerous development projects has been started by the current Govt., in this regard NHA has
executed 83 development projects costing Rs. 615.2 billion. Government of Pakistan has
allocated Rs. 63.04 billion in the Federal PSDP for construction of roads, river bridges, tunnels,
flyovers and interchanges. Government of Punjab and Federal Government have jointly
launched twin cities Rawalpindi-Islamabad Metro-Bus service project on 23rd March, 2014, with
a total cost of Rs. 44.21 billion. Metro bus project will be completed in next 10 months.
Page 4
Power generation, the most influential factor toward economic growth and progress has suffers
a lot in last decade and still a problematic symbol. However in current scenarios the GOP is
taking bold steps to evolve the shortcoming of power in order to stabilize the economic growth.
Its contribution in industrial sector is 9.15 percent and the share in the GDP is 1.9 percent. This
sub-sector has registered growth at 3.72 percent as compared to negative growth of 16.33
percent during last year, however Government has developed National Power Policy (2013)
which provides a roadmap for providing affordable energy in the country through efficient
generation, transmission and distribution system.
During the last two decades most of the developing countries are slackening the foreign direct
investment policy in order to attract the foreign investors to take part in their economic growth
as well, Pakistan as a trade hub in South Asia is also following the liberalize the foreign
investment policy. Total investment witnessed a growth of 8.5 percent as compared to 8.4
percent last year. Public investment recorded an impressive growth rate at 17.12 percent as
compared to (- 0.35) percent last year The FDI over the past five years remained slow due to
number of internal and external factors. The present governments resolve is to restore investor
confidence and create an enabling environment for foreign investment. Significant signs of
recovery can be seen in the capital market growth which has reached to new height and
emitting positive signals.
During the current FY positive developments have been witnessed on monetary side, as
government not only contained its borrowing from SBP for budgetary support but was also able
to achieve the target set under IMF condition by end March, 2014.
Inflation a hot topic now a days in developing economy like Pakistan, Hike in prices has been
absorbed in last two three years which has demolished all economic activity in the country as
the cost effectiveness is great problem for existing businesses and new investors as well.
Current GOP has taken some effective measures to reduce the inflationary factor to some
extent. Overview of inflationary trends during ten months of the current FY (July-April) 2013-14,
indicates that inflation moved at slow pace on account of improved supply position of essential
items and declining trend in major global commodities prices. Due to this slow trend the
inflation rate was recorded at 8.7 percent on average basis during July-April, 2013-14, over an
increase of 7.7 percent of corresponding period.
Government of Pakistan has tried to step forward for preventive measures and to formulate economic
policies to attract foreign investors, making economy documented to ensure mainstreamed in the
economically and socially vulnerable sectors of the economy and to steer Pakistan towards real
economic development. Efforts are underway to attain goals of sustainable social and economic
development, ensuring water, food, energy and environment securities, without over-exploiting forests
and ecosystems, to meet the needs of present and future generations.
Page 5
BUDGET AT A GLANCE
Comparative Analysis with Previous Budget
Rs. In Millions
Budget
Estimates
Revised
Estimates
Budget
Estimates
%age
Increase
2013-14
2013-14
2014-15
Tax Revenue Receipts

FBR Taxes
Other Taxes
2,671,414
2,475,000
196,414
2,513,945
2,275,000
238,945
3,129,210
2,810,000
319,210
17.14%
13.54%
62.52%
Non-Tax Revenue Receipts

Net Capital Receipts
External Receipts
Public Accounts Receipts
Gross Federal Resources
748,582
487,702
576,419
246,906
4,731,023
1,083,197
635,699
714,112
169,575
5,116,528
816,294
484,259
868,610
270,528
5,568,901
9.05%
-0.71%
50.69%
9.57%
17.71%
1,502,288
3,228,735
1,413,335
3,703,193
1,720,182
3,848,719
14.50%
19.20%
23,101
974,988
183,045
376,271
289,289
227,906
1152.28%
-76.62%
4,226,824
4,262,509
4,365,914
3.29%
Current Expenditure
Development Expenditure
3,437,466
789,358
3,403,801
858,707
3,527,413
838,500
2.62%
6.23%
TOTAL EXPENDITURES
4,226,824
4,262,509
4,365,914
3.29%
(i) Resources
Revenue Receipts (NET)
Less: Provincial share in federal

taxes
Net Federal Resources
Cash balance built up by
provinces
Credit from banking sector
TOTAL RESOURSES
(ii) Expenditures
Note: The difference in sources and expenditure is due to roundingoff of figures to nearest million rupees.
Page 6
Page 7
Detailed Budget Summary
Rs.in million
Budget
2013-14
RECEIPTS
Tax Revenue
Direct Taxes
Indirect Taxes
Other Taxes
Non Tax Revenue
Proper and Enterprises
Civil Admin & Other Functions
Misc. Receipts
Gross Revenue Receipts
Less: Provincial Share
Net Revenue Receipts
Net Capital Receipts
Estimated Provincial Surplus
External Receipts (Foreign Loans and Grants)
ESTIMATED NET RESOURCES AVAILABILITY
EXPENDITURES
Current Expenditures
Running Civil Government
Defense Affairs and Services
Pensions (Military & Civil)
Provision for Pay & Pension
Grants and Transfers (provinces and Others)
Subsidies
Interest Payment (on Domestic and Foreign Loans)
Foreign Loan Repayment
Development Expenditure
Federal PSDP
Dev. Loans & Grants to Provinces
Other Dev. Exp. (Outside PSDP)
TOTAL EXPENDITURE
Short fall
Bank Borrowings
Revised
2013-14
%age
Budget
2014-15
975,700
1,499,300
196,414
2,671,414
891,000
1,384,000
238,945
2,513,945
24.77%
38.47%
6.64%
69.89%
1,180,000
1,630,000
319,210
3,129,210
29.91%
41.31%
41.31%
79.31%
239,913
316,782
191,887
748,582
3,419,996
1,502,288
1,917,708
493,226
23,101
576,419
3,010,454
321,274
389,515
372,409
1,083,197
3,597,142
1,413,335
2,183,807
600,058
183,045
714,112
3,681,022
8.93%
10.83%
10.35%
30.11%
100.00%
191,992
417,452
206,850
816,294
3,945,504
1,720,182
2,225,322
690,619
289,289
868,610
4,073,840
4.87%
10.58%
5.24%
20.69%
100.00%
274,693
627,226
171,263
25,000
337,165
240,434
1,153,539
366,761
3,196,081
271,349
629,752
187,684
335,929
323,020
1,187,269
263,582
3,198,585
290,660
700,148
215,000
25,000
370,782
203,248
1,325,232
333,174
3,463,244
8.39%
20.22%
6.21%
0.72%
10.71%
5.87%
38.27%
9.62%
100.00%
540,000
77,540
171,815
789,355
425,000
144,348
289,360
858,708
525,000
151,688
161,813
838,501
3,985,436
4,057,293
4,301,745
-974,982
974,988
-376,271
376,271
-227,905
227,906
8.48%
19.69%
5.87%
0.00%
10.50%
10.10%
37.12%
8.24%
100.00%
Note: The difference is due to roundingoff of figures to nearest million rupees.
%age
Page 8
BREAKUP OF FEDERAL TAX REVENUE RECEIPTS

Rs.in million
Budget
2013-14
Direct Taxes
Income Tax
WWF
Capital Value Tax
Income Support Levy
Indirect Taxes
Customs
Sales Tax
Federal Excise
Petroleum Levy
ICT Taxes
Airport Tax
Total Tax Revenue
Receipts
Revised
2013-14
948,700
21,000
-
876,910
13,500
590
6,000
975,700
%age of
T.Rev.
Budget
2014-15
%age of
T.Rev.
36.74%
0.57%
0.02%
1,163,821
15,500
679
39.62%
0.53%
0.02%
891,000
37.33%
1,180,000
0.00%
40.17%
279,000
1,053,500
166,800
120,000
3,000
75
1,622,375
241,000
1,005,000
138,000
108,000
3,860
85
1,495,945
10.10%
42.10%
5.78%
4.52%
0.16%
0.00%
62.67%
281,000
1,171,000
178,000
123,000
4,720
90
1,757,810
9.56%
39.86%
6.06%
4.19%
0.16%
0.00%
59.83%
2,598,075
2,386,945
100.00%
2,937,810
100.00%
Page 9
Budget Highlights
LAYOUT FEATURES
BUDGET HIGHLIGHTS
The total outlay of budget 2014-15 is Rs 4,301 billion. This size is 7.93% higher than the size of
budget estimates 2013-14.
The resource availability during 2014-15 has been estimated at Rs 4,073 billion against Rs. 3,010
billion in the budget estimates of 2013-14.
The net revenue receipts for 2014-15 have been estimated at Rs 2,225 billion indicating an
increase of 16.04% over the budget estimates of 2013-14.
The provincial share in federal revenue receipts is estimated at Rs 1,721 billion during 2014-15,
which is 14.5% higher than the budget estimates for 2013-14
The external receipts in 2014-15 are estimated at Rs 869 billion. This shows an increase of
50.69% over the budget estimates for 2013-14.
The net capital receipts for 2014-15 have been estimated at Rs 691 billion against the budget
estimates of Rs 493 billion in 2013-14 i.e. an increase of 40.02%.
The overall expenditure during 2014-15 has been estimated at Rs 4,301 billion, out of which the
current expenditure is Rs 3,463 billion and development expenditure is Rs 839 billion. Current
expenditure has been estimated to be higher than the revised estimates for 2013-14 by around
8.27%, while development expenditure decreased by 2.37% in 2014-15 over the revised
estimates of 2013-14.
The share of current expenditure in total budgetary outlay for 2014-15 is 80.50% as compared
to 78.8% in revised estimates for 2013-14.
The expenditure on General Public Services is estimated at Rs 2,543 billion which is 73.4% of the
current expenditure.
The size of Public Sector Development Programme (PSDP) for 2014-15 is Rs 1,175 billion. Out of
this, Rs 650 billion has been allocated to provinces. Federal PSDP has been estimated at Rs. 525
billion, out of which Rs 296 billion to Federal Ministries / Divisions, Rs 175 billion to
Corporations, Rs 12.5 billion to Special Programmes, Rs 36 billion to New Development
Initiatives and Rs 05 billion to Earthquake Reconstruction and Rehabilitation Authority (ERRA).
The other development expenditure outside PSDP for 2014-15 has been estimated at Rs 162
billion
To meet expenditure, bank borrowing has been estimated at Rs 228 billion which is lower than
the revised estimates of 2013-14 at Rs 376 billion.
INCOME TAX
Simplification of Income Tax Law where different exemptions and concessions were part of
Second Schedule, now being included in the rate schedule (the first schedule) and few are being
incorporated in the relevant sections to make the law more understandable for a common
reader.
The corporate tax rate is to be reduced by one per cent to 33% for tax year 2015 as announced
in Budget Speech. Last year it was reduced from 35% to 34% for the TY2014. But the same is
missing in the rate schedule in the Finance bill.
Page 10
Budget Highlights
The existing rates of Withholding Tax on services at 6% and 7% for corporate and non-corporate
taxpayers respectively, are to be enhanced to 8% in corporate cases and 10% in other cases.
The existing rates Withholding Tax on Supplies at 3.5% and 4% for corporate and non-corporate
taxpayers respectively, are to be enhanced to 4% in corporate cases and 4.5% in other cases.
The existing rates Withholding Tax on Contracts at 6% and 6.5% for corporate and noncorporate taxpayers respectively, are to be enhanced to 7% in corporate cases and 7.5% in other
cases.
Rate of tax withheld on mobile phone charges is being reduced from 15% to 14%. Last year it
was increased from 10% to 15%
Advance income tax on functions and gatherings being reduced from 10% to 5%.
Commission agents are taxed under Final Tax regime at the rate of 10% on commission paid
which is being increased to 12%. For advertising agents, the rate of tax is 5% which is being
increased to 7.5%.
05 years tax exemptions for persons setting up processing plants for locally grown fruits in
Balochistan Province, Malakand Division, Gilgit-Baltistan and FATA to reach the bigger markets
and to promote investment, growth and employment in these areas.
To exempt the profits and gains of coal mining projects in Sindh supplying coal exclusively to
power generation projects and also to tax their dividends at reduced rate of 7.5%.
The rate of capital gains tax was to increase from 10% to 17.5% with effect from 01.07.2014. It is
proposed that the CGT rates be reduced to 12.5% for securities held up to 12 months and 10%
for securities held for a period which is between 12 to 24 months. Currently, there was no tax
for the securities held for more than 12 months.
For Foreign Investors, the corporate tax rate is to be reduced to 20% if the investment is in a
new industrial undertaking to be set up by 30.06.2017 and at least 50% of the project cost
including working capital is through FDI in equity.
50% Tax Rebate for the disabled persons on income up to Rs. 1 million.
The contract receipts of non-resident companies into a joint venture with a local entity were
taxed as final tax in the hands of the joint venture. Now the non-residents member of a JV ,if
one member of the JV is a Non Resident Company, to be taxed at the applicable rate while the
individuals should be taxed as an AOP separately.
The concessions earlier granted to PSA Gwadar PTE Limited through agreement dated
06.02.2007 are proposed to be transferred to China Overseas Ports Holding Company Limited
for the remaining period.
Exemption from Income Tax is being granted to Sindh Pension Fund established by the Govt. of
Sindh.
Flying allowance/Submarine Allowance was being taxed @2.5% as separate block of income
upto the limit of the amount of such allowance equal to basic salary. The exceeding amount was
to be taxed by clubbing with normal taxable salary at applicable rates as may be applicable,
Now, the entire amount of flying allowance shall be tax as separate block and amount exceeding
an amount equal to the basic salary be taxed at a rate of 7.5%.
It is proposed that every steel melter, steel re-roller, composite unit of melting, re-rolling and
MS cold shall pay tax at the rate of one rupee per unit of electricity consumed with electricity
Page 11
Budget Highlights
bill and they will be exempted from deduction of WHT from their suppliers. They can opt out of
this option.
For domestic electricity consumers, it is proposed to collect adjustable advance tax @ 7.5% on
the monthly bill of above Rs.100,000.
To broaden the tax base, to incentivize the tax filers and to discourage/penalize the non-filers,
certain measures have been introduced specially advance/WHT tax rate difference for compliant
tax payers and non-compliant persons like;
Advance Tax on Air Tickets of first class and club/executive class at the rate of 3% if the
passenger is a compliant taxpayer, and 5% tax if the passenger is a non-compliant
person.
Advance tax be collected on purchase of immovable property at the rate of tax is 1% for
complaint taxpayers and 2% for non-compliant persons. However, properties with value
less than 3 million and schemes introduced by the government for expatriate Pakistanis
will be excluded.
Additional advance tax be collected from persons who do not file income tax returns on
certain transactions like 5% for dividend income, 5% for interest income above
Rs.500,000, 0.2% for cash withdrawals from banks and 0.5% in case of advance capital
gain tax collected from seller of immovable property.
Double rate of advance tax for non-filers for purchase of new car & advance tax at the
time of token renewals.
For non-filers, it is proposed that rate of deduction of tax at source be enhanced in the
case of commercial importers by 0.5%, resident and non-resident contractors by 1%,
suppliers by 0.5%, payments made by exporters/export houses on account of services of
stitching, dying, printing, embroidery, sizing, weaving by 0.5%, petrol pump operators by
2% and commission agents by 2%. However, they will have the option of filing returns
and accounts in which case the current rates of tax deduction will be minimum tax rates
for them. If chose not to file the return the tax deducted will be final tax.
To make obtaining NTN a compulsory condition for obtaining commercial/ industrial
electricity and gas connections to broaden the tax net.
Advance Tax being collected by Excise and Taxation office at the time of registration of new
vehicle to be collected by the manufacturers of motor vehicles at the same rate as is prescribed
for registration of new locally manufactured private motor vehicle. In addition, currently the
highest rate of tax is for vehicles above 2000CC. It is also proposed that two higher slabs may be
added with higher rates of tax.
Rates of adjustable advance income tax collected with Motor Vehicle Token Tax from private
cars under section 234 are to be revised upward and the table of lump sum payment of such tax
is also being revised upward. Whereas the rate for non-filers would be double.
Practicing Cost & Management Accountants having 10 years experience are made eligible to be
appointed as accountant member of Appellate Tribunal Inland Revenue.
Page 12
Budget Highlights
An alternate corporate tax (ACT) @ 17% is proposed to be imposed on accounting income
excluding the exempt income. The companies shall have to pay ACT or corporate tax whichever
is higher. The ACT paid to be carried forward up to 10 years.
Proportionate allocation of expenses against different sources of income in the case of banks is
to be stipulated in law, as is already the case in non-banking businesses.
For buildings having a long useful life, the rate of initial depreciation is to be reduced to 10%
from existing 25%.
Non-profit entities to be granted a 100% tax credit instead of exemption by inserting new
section 100C in the ITO,2001 where related provisions already existed in the Second Schedule
are being incorporated to simplify the law.
The rate of tax applicable to the dividend distributed by Mutual Fund be same as is applicable to
class of income received by Mutual Fund. However, to encourage Mutual Funds the rate of tax
on dividend distributed by Mutual Fund to companies in respect of interest income shall be 25%
instead of normal rates applicable to companies.
Issuance of bonus shares are exempt from income tax. Now bonus shares be treated as dividend
and taxed at the rate of 5% of the ex-bonus price of the shares.
Income Support Levy @ 0.5 percent of Net Movable Assets being abolished by repealing the Income
Support Levy Act, 2013.
SALES TAX AND FEDERAL EXCISE

Simplification of Sales Tax Law by inserting amending existing Schedules of Zero Rating and
Exemptions and by adding some new schedule to curtail the SRO Culture. Certain SROs
pertaining to Zero rating and Exemptions are being rescinded and same are being included in
the existing and new schedules to the Sales Tax Act 1990.
Federal Excise Act, 2005 is also being amended to remove anomalies in case of Excisable
Services as after the 18th amendments, the provinces have started collection of Sales Tax on
Services on certain services like telecommunication.
No Change in Standard General Sales Tax Rate i.e 17%.
Registration of retailers on two tier system basis whereby (i) retailers part of national and
international chains, located in air-conditioned malls having debit and credit machines; shall pay
sales tax according to the existing Special Procedures for Retailers on turnover basis (ii) For
other retailers, chargeability of the sales tax through Electricity Bills @ 5% in case of monthly
electricity bill upto Rs. 20,000 and @ 7.5% of the monthly electricity bill exceeding Rs. 20,000.
This tax would be in addition to the sales tax already being charged by utility companies.
The rates of Federal Excise Duty on cigarettes are being enhanced.
Federal Excise Duty on the cement sector is being replaced from specific basis (Rs. 400 per MT)
to 5% on retail price.
Federal Excise Duty on international travel is being enhanced.
Federal Excise Duty on chartered flights is being proposed to be levied at the standard rate on
full amount charged.
Page 13
Budget Highlights
Further tax charged @ 1% on supplies made to unregistered persons is being specifically
excluded from the purview of output tax.
Rationalization of sales tax on steel sector, ship breakers and steel melters operating in the
sugar mills.
Restricting undue claims of input tax. Input tax adjustment is proposed to be restricted only to
the extent of goods and services actually used in manufacturing/sales of the taxable activity.
Replacement of capacity tax on aerated waters. The capacity regime has led to excessive
litigation and the Lahore High Court has passed order against the scheme. Therefore, the
existing scheme shall be reverted to the normal tax regime.
Transposition of SRO 575(I)/2006 to schedules with certain changes. In accordance with the
policy of reviewing SROs, it is proposed to charge following seven sectors i.e. Sr. No. 2, 3, 4, 9,
15, 20 and 30 of SRO at reduced rate of 5% sales tax. The concessions for the socially sensitive
sectors shall be retained. However, the concessions against S. No. 8, 16, 17, 24, 25, 32, 33, 37
and 38 shall be withdrawn..
Transposition of SRO 727(I)/2011 to Schedule with 5% rate of sales tax. This notification grants
exemption on import and supply of plant and machinery not manufactured locally subject to
certain conditions. It is proposed to charge sales tax at reduced rate of 5% on such plant and
machinery, subject to the same conditions, by transferring the notification to the relevant
Schedule of the Sales Tax Act, 1990.
Transposition of SRO 549(I)/2008, dated 11.06.2008 to Fifth Schedule. This notification grants
zero-rating on certain goods, including petroleum crude oil, certain raw materials for export
oriented sectors, etc. Since this zero-rating is considered essential, while the notification is
required to be deleted, it is proposed to transfer the items in the notification to the Fifth
Schedule of the Sales Tax Act, 1990.
Transposition of SRO 551(I)/2008, dated 11.06.2008 to Schedules with certain changes. This
notification grants exemption to a number of goods such as raw material for pharmaceutical
industry, iodized salt, medical equipment, components of energy saver lamps, renewable energy
items, raw cotton and oil seeds for sowing etc. The exemption on certain items is being
continued i.e. at S. No. 3, 4, 5, 7, 11, 13, 14, 16 and 29 of this SRO by transferring them to the
Sixth Schedule of the Sales Tax Act, 1990. Re-meltable scrap (S. No. 31) is proposed to be
deleted while oilseed for sowing, and raw and ginned cotton (S. No. 10 and 33) are proposed to
be charged to reduced rate of sales tax @ 5% by transferring them to the relevant Schedule of
the Sales Tax Act, 1990. However, local supply of raw and ginned cotton shall remain exempt by
transferring to the Sixth Schedule.
Transposition of SRO 501(I)/2013, dated 12.06.2013 to Schedules with certain changes. This
notification grants exemption to certain goods. It is proposed to charge sales tax at reduced rate
of 5% on soyabean meal, oil cake and directly reduced iron (S. No. 15, 16 and 21) by transferring
them to the relevant Schedule of the Sales Tax Act, 1990. Purpose built taxis (S. No. 25) is
proposed to be deleted, being redundant. Exemption on socially sensitive goods, such as
wheelchairs and energy saver lamps, is proposed to be retained by transferring them to the
Sixth Schedule to the Sales Tax Act, 1990.
Page 14
Budget Highlights
Rescission of SRO 69(I)/2006, dated 28.01.2006. This notification grants reduced rate of sales tax
14% to rapeseed, sunflower seed and canola seed. It is proposed to rescind the said notification,
thereby charging standard rate of sales tax (17%) on these seeds
Transposition of zero-rating facility for dairy and stationery industry and input materials of these
industries. The facility of zero-rating has already been provided under SRO 670(I)/2013, dated
18.07.2013. The facility is retained and the same is proposed to be incorporated in the Fifth
Schedule. .
SRO 1125(I)/2011 is being revisited and it is proposed to amend the said SRO to provide for
charging of sales tax at the standard rate of 17% on the import of finished articles of leather and
textile.
Withdrawal of FED @ 10% on motor vehicles exceeding 1800cc. FED @ 10% was imposed on
motor cars, Sports Utility Vehicles (SUVs) and other motor cars exceeding 1800cc through
Finance Act, 2013. Increase in the prices have adversely affected sales resulting in decline in
revenue besides hurting the local industry. Therefore, it is proposed to withdraw FED on locally
manufactured motor vehicles exceeding 1800cc.
Exemption to high efficiency irrigation equipment and greenhouse farming equipment in order
to promote agriculture.
Reduction in rate of sales tax on local supply of tractors.
Exemption from sales tax to import and supply of Cochlear Implants System (Hearing Aids).
Reduction in rate of Federal Excise Duty on Telecommunication Services is being proposed in
view of increase in the scope of telecommunication services with the advent of 3G and 4G
technologies from existing 19.5% to 18.5%..
Exemption on import of plant, machinery and equipment for Gilgit-Baltistan, Balochistan
Province and Malakand Division and FATA.
Specific rates of sales tax on mobile phones is being introduced to protect the revenue and
strengthen the legal support for charging of sales tax.
For CNG Sector, through Amendment Ordinance, 2014, sub-section (8) of section 3 and section
3B of the Sales Tax Act, 1990 were substituted. It is being proposed to get approval of the
Parliament to the changes made through the President Ordinance.
Uniform treatment of crude palm oil is being proposed so that exemption of sales tax and
charging Federal Excise Duty is being done as in case of other edible oils.
Provision for specifying zones for the purpose of charging sales tax and Federal Excise Duty on
the basis of prices in respective zones.
CUSTOMS ACT
Exemptions and concessions allowed under various SROs reviewed to minimize exemptions.
Concessions considered non-essential, and which were minimally utilized withdrawn.
Concessions considered socially sensitive retained. Essential concessions retained on enhanced
concessionary rates by incorporating in newly added Fifth Schedule to the Customs Act.
Maximum general tariff rate of 30% reduced to 25%. & Regulatory duty levied on luxury goods.
Page 15
Sales Tax Act

Plant, machinery and equipment imported for setting up fruit processing and preservation
industrial units in Gilgit-Baltistan, Balochistan and Malakand Division exempted from whole of
customs duty.
Plant, machinery and equipment imported for setting up industries in FATA, exempted from
whole of customs duty.
Customs duty on UPS (PCT code 8504.4010) reduced from 20% to 15%to provide relief to
general public.
Customs duty on petroleum coke not-calcined (PCT code 2713.1100) decreased from 5% to
lowest slab of 1% to reduce input costs for manufacturing concerns.
Exemption of duty and taxes on Hybrid Electric Vehicles (HEVs) rationalized: HEVs upto 1800 cc
granted 50% exemption of duty and taxes and above 1800 cc granted 25% exemption of duty
and taxes.
Substitution of 0% duty slab with 1% customs duty in Tariff. Socially sensitive items continued at
0% in new Fifth Schedule to the Customs Act.
Customs duty on networking equipments increased from 5% to 10%.
Fixed amounts of duty and taxes on used vehicles revised upward by 10% approximately.
Customs duty on flat-rolled products of alloy steel (PCT codes 72.25 and 72.26) increased from 0
and 5% to 10% to bring them at par with flat-rolled products of non-alloy steel.
Customs duty @ 5 % levied on import of generators above 1100 KVA (PCT code 8502.1390).
A uniform rate of 15% customs duty levied on dyes except basic dyes (3204.1300) and indigo
blue dyes (3204.1510) being used in textile sector.
A uniform rate of 10% customs duty on all kinds of CDs/DVDs of PCT codes 8523.4000 levied.
Customs duty on flavouring powders (PCT code 2106.9030) enhanced from 10% to 20% to avoid
misclassification
A uniform rate of 10% levied on Liquid paraffin (PCT code 2710.1995) and White oil (PCT
2710.1996) being same in nature.
Customs duty on dryers (PCT code 8421.1900) increased from 5% to 10%.
A uniform rate of 15% levied on starches (PCT code 11.08) to rationalize duty structure and
avoid classification disputes.
Customs duty on coloring matters (PCT code 3206.4990) enhanced from 5% to 10% to reduce
the chance of misclassification.
Customs duty on Satellite mobile phones whether or not functional on cellular networks (PCT
code 8517.1230) reduced from 25% to 10%.
In section 18, new subsection 1A is inserted to add the Fifth Schedule to the Customs Act, 1969
to levy specified conditional rates of customs duty on goods and class of goods.
Under the Control of Narcotics Substances Act, 1997 cases involving narcotics and narcotic
substances are to be tried in Special Courts created under the said Act. Necessary change made
in section 185B.
Page 16
Sales Tax Act
SALES TAX ACT, 1990

Definitions
Section 2 Clauses 27
Finance Bill seeks to insert proviso to clause 27 ,defining retail price, empowering FBR to specify the
zones and areas for determination of highest retail price for any brand or variety of goods.
Section 3(2)(aa), 8th

Shedule
Reduced Rate of sales Tax
In accordance with the policy of reviewing SROs the bill proposed either to withdraw the concessions
against some items or charge sales tax at reduced rates but for the society sensitive sectors concessions
shall be retained. The goods mentioned in eighth schedule proposed to be charged with sales tax @ 5%
subject to some conditions or restrictions given therein effective July 01, 2014.
The goods subject to reduced rate at 5 percent under proposed Eighth Schedule are generally exempt
from sales tax under SRO.551(I)/2008, dated 11 June 2008, SRO.727(I)/2011, dated 01 August 2011 and
SRO.501(I)/2013, dated 12 June 2013. Following item are included in 8th schedule .
Table-1
1. Soyabean meal (PCT Heading 304.0000).
2. Oil cake & other solid residues, whether or not ground or in pellets (PCT heading 2306.1000).
3. Directly reduced iron (PCT heading 72.03)
4. Imported oilseeds meant for sowing subject to certification
5. Import of raw cotton and ginned cotton
6. Plant & machinery not manufactured locally, having no compatible local substitutes subject to
specified conditions.
Table-2
1. Machinery and equipment for development of grain handling and storage facilities.
2. Cool chain machinery and equipment.

3. Various items imported by Call Centers, Business Processing Outsourcing facilities duly approved by
Telecommunication Authority.
4. Machinery, equipment, materials for mineral exploration phase.
5. Complete plants for relocated industries.
6. Machinery, equipment for oil refining etc.
7. Proprietary Formwork System for building/structures of a height of 100 ft and above and its various
items/ components
Section 3(3B)), 9th

Schedule
Sales Tax on Mobile Phones
Page 17
Sales Tax Act

The finance bill proposed to charge, collect and pay sales tax ranging from Rs.150/- per phone to Rs.
500/- per phone on supply and import stage subject to some conditions and restrictions as given in ninth
schedule of Sales Tax Act, 1990. The liability of payment of sales tax will be on importer in case of import
and in case of registration of new International Mobile Equipment Identity (IMEI) number , liability of
payment of tax will be on Cellular Mobile Operator. Currently these rates are applicable on mobile /
cellular phones under SRO.460(I)/2013, dated 30 May 2014 and now proposed to be embedded under
Ninth Schedule to the Act, subject to similar conditions.
Section 3(8)
sales Tax on CNG Stations
Section 3(8) was inserted vide Finance Act, 2013, whereby the Gas Transmission and Distribution
Company was subjected to charge and pay sales tax on supply of natural gas to CNG stations at 9
percent in addition to standard sales tax at 17 percent. After the decision by apex court against
additional sales tax of 9% the subsection was substituted through Sales Tax (Amendment) Ordinance
2014 , dated March 24, 2014 and this section was substituted to require the Gas Transmission and
Distribution Company to charge sales tax at 17 percent on its bills to CNG stations, on the value of
supply to CNG Consumers as notified by the Board from time to time. Now in order to give the legal
cover to earlier amendment made vide Sales Tax (Amendment ) Ordinance, 2014 this amendment is
proposed.
sales Tax for Retailers
Section 3(9))
The Bill proposes to introduce two tier system for taxation of retailers by insertion of new sub-section
(9) to Section 3 of the Act and simultaneously exemption threshold of Rs.5 million as provided under
Table-2 of the Sixth Schedule to the Act is proposed to be withdrawn.
Under first tier, the large retailers having outlets operating as part of national or multi-national chains,
or located in air-conditioned malls, having facilities of debit / credit cards, would be subject to sales tax
@ 17 percent under normal sales tax regime. Accordingly, amendments in Chapter-II [Special Procedure
for Retailers] of Sales Tax Special Procedure Rules, 2007 will be effected in due course.
Under second tier, the small retailers would be subject to sales tax at reduced rates, to be charged and
paid through monthly electricity bills as follows:
sales tax @ 5% If monthly electricity bill does not exceed Rs.20,000
sales tax @ 7.5% If monthly electricity bill exceeds Rs.20,000
Sales tax collectible on electricity bills would be in addition to sales tax applicable under Sections
3(1), 3(1A) and 3(5) of the Act. This amendment will take effect from July 01, 2014.
Collection of Excess Tax
Section 3B(2)
In certain situations, the courts direct the taxpayers to deposit the disputed tax money which was
Page 18
Sales Tax Act

charged and collected from the customers with the Court, till the time the appeal is decided. To cater
this situation, Section 3B(2) is proposed to be substituted to clarify that sales tax
collected as excess tax shall be deemed to be an arrear of tax or charge payable to Federal
Government and any claim for refund of such excess tax shall neither be admissible to the registered
person, nor payable to any court of law or to any person under direction of the court.
The Bill also seeks to give overriding effect to this provision without prejudice to any other law or
judgment of the court including Supreme Court and High Court. The legal sanctity of the proposed
substitution however appears debatable, considering that the jurisdiction of superior courts, being the
ultimate interpretational authority, should override the tax statues. Earlier this subsection was
substituted through Sales Tax (Amendment) Ordinance, 2014.
Further Tax and Admissibility of Input Tax
Section 7(1) and

section 7(2)(iiia)
It is proposed that 1% further tax charged to unregistered persons shall not be part of out put tax, which
implies that the registered person will not be entitled to deduct input tax from the further tax as
charged and collected from unregistered persons during the tax period. As such, any collection of
further tax in a reporting month, will be payable with the return even if excess input tax arises in any tax
period. This seems to be harsh provision.
Subsection (2) of Section 7 prescribes certain conditions for admissibility of input tax against out put tax
i.e possession of valid sales tax invoice, goods declaration for imports, treasury challans for auction
goods etc. The Bill seeks to insert a new clause (iiia) under Section 7(2) to restrict undue input tax claims
. Input tax adjustment is proposed to be restricted only to the extent of goods and services actually used
in manufacturing /sales of the taxable activity. Following additional conditions are required to be
fulfilled by the registered person while claiming input tax on acquisition of goods and services in order
to validate his claim.
(a) Imported or purchased for the purpose of sale or re-sale by the registered person on payment
of tax;
(b) used directly as raw material, ingredient, part, component or packing material by the registered
person in the manufacture or production of taxable goods;
(c) electricity, natural gas and other fuel consumed directly by the registered person in his declared
business premises for the manufacture, production or supply of taxable goods; or
(d) plant, machinery and equipment used by the registered person in his declared business
premises for the manufacture, production or supply of taxable goods.
Page 19
Sales Tax Act
Inadmissible Input Tax Credit
Section 8
Bill seeks to propose that the negative list of goods on which input tax is not admissible as mentioned
under SRO.490(I)/2004 is to be covered through Section 8 of the Act. As such new clauses from (f) to (i)
are proposed to be inserted in Section 8(1) of the Act, as reproduced below:
(f) goods and services not related to the taxable supplies made by the registered person;
(g) goods and services acquired for personal or non-business consumption;
(h) goods used in, or permanently attached to, immoveable property, such as building and
construction materials, paint, electrical and sanitary fittings, pipes, wires and cables, but
excluding such goods acquired for sale or re-sale or for direct use in the production or
manufacture of taxable goods and
(i) vehicles falling in Chapter 87 of the First Schedule to the Customs Act< 1969 (IV of 1969), parts of
such vehicles, electrical and gas appliances, furniture, furnishings, office equipment (excluding electronic
cash registers), but excluding such goods acquired for sale or re-sale.
Posting of Inland Revenue Officer to monitor Production
Section 40B
Finance Bill seeks to insert an explanation in section 40B to empower the inland revenue officers to
monitor production, sale of taxable goods and stock position without obtaining warrants from
Magistrate under section 40 of the Act
Electronic Scrutiny and Intimation System
Section 50B
Bill seek to introduce electronic scrutiny and intimation system and it will conduct all checks and analysis
objectively and will issue electronic intimation to the taxpayer. This system will facilitate automated
scrutiny, analysis and cross matching of returns and other available data of registered person and then
sending intimations electronically to such registered persons about the issue detected. The intimation so
transmitted shall either be in the form of instruction or advance notice allowing the registered person to
clarify his position or rectify the mistake before any legal proceeding. The Board may also prescribe
procedures for efficient operation of the proposed computerized system.
Normal Taxation for Aerated Water
Production Capacity (Aerated

Water) Rules, 2013
Capacity based tax regime was introduced under FED and Sales Tax on Production Capacity (Aerated
Waters) Rules, 2013, which were challenged before the superior courts. The Honble Lahore High Court
held such regime beyond the scope of charging provisions of sales tax law. As such, the budgetary
measures reflect that the afore-said Rules are being rescinded to bring the taxation of aerated waters
under normal sales tax regime. However, the notification to this effect is still awaited.
Page 20
Sales Tax Act
Transposition of Zero Rating and Exemptions under specific

SROs to 5th and 6th Schedule
In accordance with the policy of the Government to phase out the SRO culture gradually, the goods on
which sales tax zero-rating is currently available under SRO.549(I)/2008, dated 11 June 2008 and
SRO.670(I)/2013, dated 18 July 21013, are proposed to be included in Fifth Schedule to the Act w.e.f. 01
July 2014, which inter-alia include petroleum crude oil, stationery articles, dairy products, preparation
for infant use for retail sale, bicycles, parts and components used in exempt capital goods subject to
specified conditions, exportation of exempt goods, etc.
This would mean that any amendment in the Sales Tax laws would preferably take place after approval
of the Parliament.
Further, various exemptions currently covered under SRO.575(I)/2006, dated 5 June 2006,
SRO.551(I)/2008, dated 11 June 2008 and SRO.501(I)/2013 dated 12 June 2013, SRO. 727(I)/2011, dated
August 01, 2011 and are proposed to be regulated through Sixth Schedule w.e.f. 01 July 2014, which
include:
SRO.575(I)/2006, dated 5 June 2006 [Import and supplies]
Plant, machinery, equipment & apparatus for various industrial segments, which inter-alia include
desalination plants, gas processing plants, hospitals, Thar Coal Field, power generation projects,
power transmission, technical training institutes, engineering works at Karachi Shipyard, granite and
gem stone extraction and processing industry, Effluent treatment plants, etc.
SRO.551(I)/2008, dated 11 June 2008 [Import and supply]
Raw materials for manufacture of leather goods, machinery for EPZ, ships of gross tonnage of less
than 15 LTD, all floating crafts, substances registered as drugs with specified exclusions, raw material
for active ingredients of pharmaceutical industry, import of edible offal of bovine animals, iodized salt,
parts of energy saver lamps, goods used for renewable source of energy, white crystalline sugar, medical
equipment & accessories, etc.
SRO.549(I)/2008, dated 11 June 2008 [Local supply only]
Reclaimed lead, waste paper, sprinkler equipment, drip equipment, spray pumps and nozzles, raw
cotton and ginned cotton.
SRO.501(I)/2013, dated 12 June 2013 [Import and supplies]
Specified stationery articles, dairy products, preparation for infant use for retail sale, bicycles,
uncooked poultry meat, frozen/preserved meat, cotton seed, energy saver lamps, sewing machines,
wheel chairs, non-chemical fertilizers, construction materials for Gwadar Export Processing Zone,
vessels for breaking up, etc.
Page 21
Sales Tax Act
Sales Tax Special Procedure Rules, 2007

58G,58H,58Hb,58I58J, 58K & 58M
, Rule 58F,
SRO 421(I)/2014
Rationalization of sales tax on steel sector , ship breakers and steel melters operating in the sugar mills is being
made by amending Sales Tax Special Procedure Rules,2007 enforced through SRO 421(I)/2014 effective
04.06.2014. Sugar mills or any other persons operating steel melting or steel re-rolling mills using self generated
electricity produced from bagasse or other means shall pay sales tax at the normal rate specified in sub-section (1)
of section 3 of the Sales Tax Act, 1990. i.e @17%
Through this amendment steel melting units, steel re-rolling units, composite unit of steel melting, re-rolling and
MS cold drawing and composite unit of steel melting and re-rolling (having a single meter of electricity) not
operated under sugar mills and using the electricity provided by public sector electricity distribution companies
shall pay sales @ Rs.7/- per unit of electricity consumed. Earlier this rate was Rs.4/- per unit and the same was
applicable to all persons in the sector. The tax so paid is final.
Sales tax on Import of remittable iron and steel scrap is being enhanced to Rs.5,600/- per MT and the same is
adjustable against the sales tax charged through electricity bill . The procedure for the same are still awaited.
Moreover as per SRO if the person failed to deposit the sales tax with in due date of electricity bill , it will
excluded from the ambit of Final Tax and sales tax @ 17% has to be paid on the basis of value od supply.
Commissioner Inland Revenue is empowered through this amendment to collect the sales tax directly from the
persons operating in the sector and later on it will be adjusted against the electricity bill.
Rate of sales tax on ship breakers has been enhanced from Rs.5,862/- per MT to Rs.6,700/- per MT payable at the
time of import of the ship for re-rollable purpose. The weight will be taken at 70.50% of the LDT of ship.
The due date of filing of tax return for the persons paying sales tax under these rules alongwith electricity bills or
on the basis of gas bills shall be 28th of the month following the tax period to which the electricity bill relates.
Following amended rates of sales tax will be mentioned in the sales tax invoice
S.No
Invoices issued by and for or to
By steel melting or composite units of melting, re-rolling and

MS cold drawing to registered re-roller
By steel re-rollers, using ingots or billets or steel melters or
composite units of melting, re-rolling and MS cold drawing to
registered person
By re-rollers , using billets of Pakistan eel Mills or people steel
Mills or Heavy Mechanical Complex or imported billets , to
registered persons
By re-rollers , using ship-plates and re-rollable scrap as raw
material, to registered persons
By re-rollers to unregistered persons
By persons supplying imported MS products to registered
persons
By persons supplying imported MS products, to unregistered
persons
2
3
4
5
6
7
Amount of sales tax to be mentioned

on the invoices
Existing rates
Revised Rates
Rs.6,447 per MT
Rs.6,447
per
MT
Rs.4,567per MT
Rs.7,357
per
MT
Rs.8,526 per MT
Rs 8,092 per
MT
Rs.6,772 per MT
Rs.7,610
per
MT
Rs.910 per MT
Rs.8,526
per
MT
Rs.910 per MT
Rs.520 per MT
Rs.8,526 per MT
Rs.910per MT
Page 22
Sales Tax Act
Reduced Rate abolished on Finish goods
SRO 420(I)/2014
Import of finished goods ready for use by general public have been excluded from reduced rate of 5%
by amending SRO 1125 (1)2011 enforced through SRO 420(I)/2014 effective from 04.06.2014. Now
standard rate of 17% will apply in addition to 2% value addition tax at import stage.
ZERO RATING OF GOODS
Fifth Schedule
Through Finance Bill List of items proposed to be added to fifth schedule being zero rated supplies. It is
further proposed to insert following further items of dairy and stationary industry and input materials of
these industries in fifth schedule from SRO 670(I)/2013 dated 18.07.2013 and rescission of the
notification is also proposed with effect from 01.07.2014
S.No
9
I
Ii
Description
Goods exempted under Section 13, if exported by a manufactured who makes
local supplies of both taxable and exempt goods
Petroleum Crude Oil
Raw material, components, sub-components and parts, if imported or purchased
locally for use in the manufacturing of such plant & machinery as is chargeable to
sales tax at the rate of zero percent subject to condition that importer or
purchaser holds valid sales tax registration being manufacturer and in case of
import, all the conditions limitations and procedures are imposed by Notification
under section 19 of the Customs Act, 1969.
Following goods and the raw materials . packing materials, sub-components,
components, sub-assemblies and assemblies imported or purchased locally for the
manufacture of the said goods subject to the conditions, limitations and
restrictions as specified in Chapter XIV of the Sales Tax Special Procedure
Rules,2007.
Colors in sets
Writing, drawing and marking inks
Iii
Erasers
Iv
V
Vi
Vii
Viii
Ix
X
Xi
Xii
Exercise books
Pencil sharpeners
Geometry boxes
Pens, ball pens, markers and porous tipped pens
Pencils including color pencils
Milk including flavored milk
Yogurt
Cheese
Butter
xiii
Cream
10
11
12
PCT Heading
2709.0000
3213.1000
3215.9010 and
3215.9090
4014.9210 and
4016.9290
4820.2000
8214.1000
9017.2000
98.08
96.09
04.01
0403.1000
0406.1010
0405.1000
04.01 and
Page 23
Sales Tax Act

xiv
Xv
Xvi
Xvii
Xviii
Xix
Desi ghee
Whey
Milk and cream, concentrated and added sugar or other sweetening matter
Preparations for infant use put up for retail sale
Fat filled milk
Bicycles
Sales Tax Exemptions
04.02
0405.9000
04.04
0402.1000
1901.1000
1901.9090
87.12
Sixth Schedule
Finance bill seeks to insert following new entries in the sixth schedule.
Table-1 (Imports or Supplies)

Serial
No
(1)
1.
2.
Description
(2)
Live Animals and live poultry.
11.
Meat of bovine animals, sheep and goat, excluding poultry and offal,
whether or not fresh, frozen or otherwise, preserved.
Fish and crustaceans excluding live fish whether or not fresh, frozen or
otherwise preserved.
Eggs including eggs for hatching
12.
Live plants including bulbs, roots and the like.
13.
Edible vegetables including roots and tubers, 1[except ware potato and
onions] whether fresh, frozen or otherwise preserved (e.g. in cold
storage) but excluding those bottled or canned [***].
3.
Heading Nos. of the First

Schedule to the Customs
Act, 1969 (IV of 1969)
(3)
0101.1000,
0101.9000,
0102.1010,
0102.1020,
0102.1030,
0102.1040,
0102.1090,
0102.9010,
0102.9020,
0102.9030,
0102.9040,
0102.9090,
0104.1000,
0104.2000,
0105.1100,
0105.1200,
0105.1900,
0105.9400,
0105.9900,
0106.1100,
0106.1200,
0106.1900,
0106.2000,
0106.3110,
0106.3190,
0106.3200,
0106.3900 and 0106.9000
02.01, 02.02 and 02.04
03.02, 03.03, 03.04, 03.05
and 03.06
0407.0010 and 0407.0090
0601.1010,
0601.1090,
0601.2000,
0602.1000,
0602.2000,
0602.3000,
0602.4000, 0602.9010 and
0602.9090
0701.1000, [***], 0702.0000,
[***], 0703.2000, 0703.9000,
0704.1000,
0704.2000,
0704.9000,
0705.1100,
0705.1900,
0705.2100,
Page 24
Sales Tax Act

0705.2900,
0706.1000,
0706.9000,
0707.0000,
0708.1000,
0708.2000,
0708.9000,
0709.1000,
0709.2000,
0709.3000,
0709.4000,
0709.5100,
0709.5910,
0709.5990,
0709.6000,
0709.7000,
0709.9000,
0710.1000,
0710.2100,
0710.2200,
0710.2900,
0710.3000,
0710.4000,
0710.8000,
0710.9000,
0712.2000,
0712.3100,
0712.3200,
0712.3300, 0712.3900
14.
Pulses.
15.
Edible fruits excluding imported fruits (except fruits imported from

Afghanistan) whether fresh, frozen or otherwise preserved but excluding
those bottled or canned [***].
16.
Red chillies excluding those sold in retail packing bearing brand names
and trademarks.
Ginger excluding those sold in retail packing bearing brand names and
17.
and 0712.9000.
0713.1000,
1[713.2010,
0713.2020,
0713.2090],
0713.3100,
0713.3200,
0713.3300,
0713.3910,
0713.3920,
0713.3990,
0713.4010,
0713.4020,
0713.5000,
0713.9010,
0713.9020 and 0713.9090.
0803.0000,
0804.1010,
0804.1020,
0804.2000,
0804.3000,
0804.4000,
0804.5010,
0804.5020,
0804.5030,
0805.1000,
0805.2010,
0805.2090,
0805.4000,
0805.5000,
0805.9000,
0806.1000,
0806.2000,
0807.1100,
0807.1900,
0807.2000,
0808.1000,
0808.2000,
0809.1000,
0809.2000,
0809.3000,
0809.4000,
0810.1000, 0810.2000, [***],
0810.4000,
0810.5000,
0810.6000,
0810.9010,
0810.9090,
0811.1000,
0811.2000,
0811.9000,
0813.1000,
0813.2000,
0813.3000,
0813.4010,
0813.4020 and 0813.4090.
0904.2010 and 0904.2020
0910.1000
Page 25
Sales Tax Act
19.
trademarks.
Turmeric excluding those sold in retail packing bearing brand names and
trademarks.
Cereals and products of milling industry.
20.
Seeds, fruit and spores of a kind used for sowing.
21.
Cinchona bark.
22.
23.
24.
Sugar beet.
Sugar cane.
Edible oils and vegetable ghee, including cooking oil, on which Federal
Excise Duty is charged, levied and collected by a registered manufacturer
or importer as if it were a tax payable under section 3 of the Act.
18.
Explanation. Exemption of this entry shall not be available to

distributors, wholesalers or retailers.
26.
Fruit juices, whether fresh, frozen or otherwise preserved but excluding

those bottled, canned or packaged.
0910.3000
1001.1000,
1001.9000,
1002.0000,
1003.0000,
1004.0000,
1005.1000,
1005.9000, 2 [1006.1010,
1006.1090],
1006.2000,
1006.3010,
1006.3090,
1006.4000,
1007.0000,
1008.1000,
1008.2000,
1008.3000,
1008.9000,
1101.0010,
1101.0020,
1102.1000,
1102.2000,
1102.3000,
1102.9000,
1103.1100,
1103.1300,
1103.1900,
1104.2200,
1104.2300, 1104.2900 and
1104.3000
1209.1000,
1209.2100,
1209.2200,
1209.2300,
1209.2400, 1209.2500, [***],
1209.2900,
1209.3000,
1209.9110, 1209.9120, 1209.
9130,
1209.9190
and
1209.9900.
1211.9000
1212.9100
3[1212.9990]
1507.9000,
1508.9000,
1509.1000,
1509.9000,
1510.0000,1511.1000
1511.9020,
1511.9030,
1512.1900,
1513.1900,
1513.2900,
1514.1900,
1514.9900,
1515.2900,
1515.5000,
1516.2010,
1516.2020,
1517.1000,
1517.9000 and 1518.0000.
2009.1100,
2009.1200,
2009.1900,
2009.2100,
2009.2900,
2009.3100,
2009.3900,
2009.4100,
2009.4900,
2009.5000,
2009.6100,
2009.6900,
2009.7100,
2009.7900,
2009.8000 and 2009.9000.
Page 26
Sales Tax Act

27.
Ice and waters excluding those for sale under brand names or
trademarks.
2201.1010
28.
Poultry feed and Cattle feed including their all ingredients except
soyabean meal of PCT heading 2304.0000 and oil-cake of cottonseed
falling under PCT heading 2306.1000.
29.
Table salt including iodized salt excluding salt sold in retail packing
bearing brand names and trademarks.
Glass bangles
Holy Quran, complete or in parts, with or without translation; Quranic
Verses recorded on any analogue or digital media; other Holy books.
2301.2090,
2305.0000,
2306.2000,
2306.3000,
2306.4100,
2306.5000,
2309.9010,
2309.9020,
2309.9090,
2936.2100,
2936.2200,
2936.2300,
2936.2400,
2936.2500,
2936.2600, 2936.2700 and
2936.2800
2501.0010
29C.
31.
32.
Newsprint, newspapers, journals, periodicals, books [***] but excluding

directories.
33.
36.
Currency notes, bank notes, shares, stocks and bonds.

Silver, in unworked condition.
37.
Gold, in un-worked condition.
38.
39.
Monetary gold.
Incinerators of disposal of waste management, motorized sweepers and
snow ploughs.
Dextrose and saline infusion giving sets [***] along with empty non-toxic
bags for infusion solution, Dextrose and saline infusion giving sets,
Artificial parts of the body, Intra-Ocular lenses and Glucose testing
equipment.
Goods imported by various agencies of the United Nations, diplomats,
diplomatic missions, privileged persons and privileged organizations
which are covered under various Acts and, Orders, rules and regulations
made thereunder; and agreements by the Federal Government provided
that such goods are charged to zero-rate of customs duty under Customs
Act, 1969 (IV of 1969), and the conditions laid therein
Import of articles of household and personal effects including vehicles
and also the goods for donation to projects established in Pakistan
imported by any of the rulers of Gulf Sheikhdoms who is in possession of
residential accommodation in Pakistan and goods including vehicles by
the United Arab Emirates dignitaries as are listed in column (2) against
heading No. 99.05 in column (1) of the First Schedule to the Customs
45.
46.
47.
7020.0090
4901.9910,
8523.2100,
8523.2910,
8523.2990,
8523.4010,
8523.4030,
8523.4090,
8523.5100,
8523.5200,
8523.5910,
8523.5990,
8523.8010,
8523.8020 and 8523.8090
4801.0000,4901.9100,
4901.9990,
4902.1000,
4902.9000, and 4903.0000 ]
4907.0000
7106.1000, 7106.9110 and
7106.9190
7108.1100, 7108.1210 and
7108.1290
7108.2000 and 7108.2090
8417.8000, 8430.2000 and
8479.8990
9018.3910,
9018.3920,
9021.3100, 9021.3900 and
9027.8000
99.01, 99.02, 99.03 and 99.06
99.05
Page 27
Sales Tax Act
48.
49.
50.
51.
52.
52-A
53.
54.
55.
56.
Act, 1969 (IV of 1969) for their personal use and for donation to welfare
projects established in Pakistan subject to the similar conditions as are
envisaged for the purposes of applying zero-rate of customs duty on
such goods under the said Act.
Goods imported or supplied under grants-in-aid for which a specific
consent has been obtained from the Board; supplies and imports under
agreements signed by the Government of Pakistan before the 30th June,
1996, provided the agreements contained the provision for exemption of
tax at the time of signing of agreement.
Import of all goods received, in the event of a natural disaster or other
catastrophe, as gifts and relief consignments, including goods imported
for the Presidents Fund for Afghan Refugees, relief goods donated for
Afghan Refugees, gifts for Presidents Fund for Assistance of Palestine
and gifts received by Pakistani organizations from Church World Services
or the Catholic Relief Services subject to the similar conditions as are
envisaged for the purposes of applying zero-rate of customs duty under
the Custom Act.
Articles imported through post as unsolicited gifts, subject to the same
conditions as are envisaged for the purposes of applying zero-rate of
customs duty under the Customs Act, 1969.
Imported samples, subject to the same conditions as are envisaged for
the purposes of applying zero-rate of customs duty under the Customs
Act, 1969.
Goods imported by or donated to hospitals run by the Federal
Government or a Provincial Government; and non-profit making
educational and research institutions subject to the similar restrictions,
limitations, conditions and procedures as are envisaged for the purpose
of applying zero-rate of customs duty on such goods under the Customs
Act, 1969 (IV of 1969).
Goods supplied to hospitals run by the Federal or Provincial
Governments or charitable operating hospitals of fifty beds or more or
the teaching hospitals of statutory universities of two hundred or more
beds.
Import of all such gifts as are received, and such equipment for fighting
tuberculosis, leprosy, AIDS and cancer and such equipment and
apparatus for the rehabilitation of the deaf, the blind, crippled or
mentally retarded as are purchased or otherwise secured by a charitable
non-profit making institution solely for the purpose of advancing
declared objectives of such institution, subject to the similar conditions
as are envisaged for the purposes of applying zero-rate of customs duty
under the Customs Act, 1969 (IV of 1969).
Educational, scientific and cultural material imported from a country
signatory to UNESCO Agreement or a country signatory to bilateral
commodity exchange agreement with Pakistan, subject to the same
conditions as are envisaged for the purposes of exemption under the
Customs Act, 1969 (IV of 1969).
Import of replacement goods supplied free of cost in lieu of defective
goods imported, subject to similar conditions as are envisaged for the
purposes of applying zero-rate of customs duty under the Customs Act,
1969.
Re-importation of foreign origin goods which were temporarily exported
99.03
99.07, 99.08 and 99.11
99.09
99.10
99.13, 99.14, 99.15 and 99.15
Respective headings
99.12, 99.13 and 99.14
99.15
99.16
99.18
Page 28
Sales Tax Act
57.
58.
59.
60.
61.
63.
71.
72
73
74
75
76
77
78
79
80
81
82
83
out of Pakistan subject to similar conditions as are envisaged for the

purposes of applying zero-rate of customs duty under the Customs Act,
1969.
Goods (including dry fruits imported from Afghanistan) temporarily
imported into Pakistan, meant for subsequent exportation charged to
zero-rate of customs duty subject to the similar restrictions, limitations,
conditions and procedures as are envisaged for the purpose of applying
zero-rate of customs duty on such goods under the Customs Act, 1969
(IV of 1969).
Import of ship stores, subject to the procedures, conditions and
restrictions as may be specified by the Collector of Customs in this behalf
including those consignments of such stores that have been released
without charging sales tax since the 1st July, 1998, but excluding such
consignments of ship stores as have been cleared on payment of sales
tax.
Artificial kidneys, eye cornea, hemodialysis machines, hemodialyzers,
A.V. fistula needles, hemodialysis fluids and powder, blood tubing tines
for dialysis and reverse osmosis plants for dialysis, double lumen
catheter for dialysis, catheter for renal failure patient and peritoneal
dialysis solution, Cochlear Implants system and angioplasty equipment
(balloons, catheters, wires and stents), subject to the similar conditions
and procedures as are envisaged for the purpose of applying zero-rate of
customs duty on these goods under the Customs Act, 1969 (IV of 1969).
Contraceptives and accessories thereof.
Goods produced or manufactured in and exported from Pakistan which
are subsequently imported in Pakistan within one year of their
exportation, provided conditions of section 22 of the Customs Act, 1969
(IV of 1969), are complied with.
Personal wearing apparel and bonafide baggage imported by overseas
Pakistanis and tourists, if imported under various baggage rules and is
exempt from Customs duties.
Goods and services purchased by non-resident entrepreneurs and in
trade fairs and exhibitions subject to reciprocity and such conditions and
restrictions as may be specified by the Board.
Uncooked poultry meat
Milk and cream
Flavored milk
Yogurt
Whey
Butter
Desi ghee
Cheese
Processed cheese not grated or powdered
Cotton seed
Frozen, prepared or preserved sausages and similar products of poultry
meat or meat offal
Meat and similar products of prepared frozen or preserved meat or
meat offal of all types including poultry meat and fish
99.19, 99.20 and 99.21
99.22
99.24, 99.25, 99.37 and 99.38
3926.9020 and 4014.1000

Respective headings
Respective headings
Respective headings
02.07
04.01 and 04.02
0402.9900 and 22.02
0403.1000
04.04
0405.1000
0405.9000
0406.1010
0406.3000
1207.2000
1601.1000
1602.3200,
1602.5000,
1604.1200,
1604.1400,
1602.3900,
1604.1100,
1604.1300,
1604.1500,
Page 29
Sales Tax Act

1604.1600,
1604.1900,
1604.2010,
1604.2020,
1604.2090, 1604.3000
84
85
86
87
88
89
90
91
92
Preparations for infant use, put up for retail sale

Fat filled milk
Colours in sets (Poster colours)
Writing, drawing and marking inks
Erasers
Exercise books
Pencil sharpeners
Energy saver lamps
Sewing machines of the household type
1901.1000
1901.9090
3213.1000
3215.9090 and 3215.9010
4016.9210 and 4016.9290
4820.2000
8214.1000
8539.3910
8452.1010 and 8452.1090
93
94
95
96
Bicycles
Wheelchairs
Vessels for breaking up
Other drawing, marking out or mathematical calculating instruments
(geometry box)
Pens and ball pens
Pencils including colour pencils
Compost (non-chemical fertilizer) produced and supplied locally
87.12
8713.1000 and 8713.9000
89.08
9017.2000
Construction materials to Gawadar Export Processing Zones investors

and to Export Processing Zone
Gawadar for development of Zones infrastructure
Raw and pickled hides and skins, wet blue hides and skins, finished
leather, and accessories, components and trimmings, if imported by a
registered leather goods manufacturer, for the manufacture of goods
wholly for export, provided that conditions, procedures and restrictions
laid down in rules 264 to 278 of the Customs Rules, 2001 are duly
fulfilled and complied with.
Respective headings
Machinery, equipment and materials imported either for exclusive use

within the limits of Export Processing Zone or for making exports
therefrom, and goods imported for warehousing purpose in Export
Processing Zone, subject to the conditions that such machinery,
equipment,
materials and goods are imported by investors of Export Processing
Zones, and all the procedures, limitations and restrictions as are
applicable on such goods under the Customs Act, 1969 (IV of 1969) and
rules made thereunder shall mutatis mutandis, apply.
Import and supply thereof, up to the year 2020, of ships of gross
tonnage of less than 15 LDT and all floating crafts including tugs,
dredgers, survey vessels and other specialized crafts purchased
or bare-boat chartered by a Pakistan entity and flying the
Pakistan flag, except ships or crafts acquired for demolition
purposes or are designed or adapted for use for recreation or
pleasure purposes, subject to the condition that such subject to
Respective headings
97
98
99
100
101
102
103
96.08
96.09
Respective headings
Respective headings
Respective headings
Page 30
Sales Tax Act
104
105
106
107
108
109
the condition that such ships or crafts are used only for the
purpose for which they were procured ,and in case such ships or
crafts are used for demolition purposes within a period of five
years of their acquisition, sales tax applicable to such ships
purchased for demolition purposes shall be chargeable.
Substances registered as drugs under the 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;
(c) soft soap or no-soap soap;
(d) adhesive plaster;
(e) surgical tapes;
(f) liquid paraffin;
(g) disinfectants; and
(h) cosmetics and toilet preparations.
Raw materials for the basic manufacture of pharmaceutical active

ingredients and for manufacture of pharmaceutical products, provided
that in case of import, only such raw materials shall be entitled to
exemption which are liable to customs duty not exceeding ten per cent
advalorem, either under the First Schedule to the Customs Act, 1969 (IV
of 1969) or under a notification issued under section 19 thereof.
Import of Halal edible offal of bovine animals.
Import and supply of iodized salt bearing brand names and trademarks
whether or not sold in retail packing.
Components or sub-components of energy saver lamps, namely:(a) Electronic Circuit
(b) Plastic Caps (Upper and Lower)
(c) Base Caps B22 and E27
(d) Tungsten Filaments
(e) Lead-in-wire
(f) Fluorescent Powder (Tri Band Phospher)
(g) Adhesive Additive
(h) Al-Oxide Suspension
(i) Capping Cement
(j) Stamp Pad Ink
(k) Gutter for Suspension
Goods imported temporarily with a view to subsequent
exportation, as concurred by the Board, including passenger service
item, provision and stores of Pakistani Airlines.
Respective headings
Respective headings
0206.1000,0206.2000,
0206.8000 and 0206.9000
8539.9040
8539.9040
8539.9040
8539.9040
3206.5010
3824.9099
3824.9099
3214.1050
3215.9010
2850.0000
Respective headings
Page 31
Sales Tax Act

110
111
112
The following items with dedicated use of renewable source of energy

like solar and wind, subject to certification by the Alternative Energy
Development Board (AEDB), Islamabad:(a) Solar PV panels;
(b) LVD induction lamps;
(c) SMD, LEDs with or without ballast, with fittings and
fixtures;
(d) Wind turbines including alternators and mast;
(e) Solar torches;
(f) Lanterns and related instruments;
(g) PV modules along with related components, including
invertors, charge controllers and batteries.
White crystalline sugar
Following cardiology/cardiac surgery, neurovascular, electrophysiology,
endosurgery, endoscopy, oncology, urology, gynaecology, disposables
and other equipment:A. ANGIOPLASTY PRODUCTS
1. Coronary Artery Stents
2. Drugs Eluting Coronary Artery Stents
3. Coronary Artery 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
6. Mannifolds
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
8541.5000, 8539.3990
9405.1090 ,8502.3100
8513.1040 ,8513.1090
8541.4000,8504.4090,
9032.8990 and 8507.0000
1701.9910 and 1701.9920

Respective headings
D. TEMPORARY PACEMAKERS (with leads, connectors and accessories)

E. PERMANENT PACEMAKER (with leads, connectors and accessories)
F. HEART FAILURE DEVICES (with leads, connectors and accessories)
G. IMPLANTABLE CARDIOVERTES (with leads, connectors and
accessories)
H. CARDIAC ELECTROPHYSIOLOGY PRODUCTS
1. Electrophysiology catheters
2. Electrophysiology cables
3. Electrophysiology connectors
Page 32
Sales Tax Act

I. LEAR CARDIOLOGY PRODUCTS
1. Radioactive isotopes
2. Cold kits (Cardioloite MAA, DTPA etc)
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
113
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.
High Efficiency Irrigation Equipment.
(If used for agriculture sector)
1) Submersible pumps (up to 75 lbs and head 150 meters)
114
8413.7010
2) Sprinklers including high and low pressure (center pivotal)

system, conventional sprinkler equipment, water reel traveling
sprinkler, drip or trickle irrigation equipment, mint irrigation
sprinkler system.
8424.8100, 8424.2010
3) Air release valves, pressure gauges, water meters, back flow

preventers, and automatic controllers.
8481.1000,
8481.3000,
9026.2000, 9032.8990
Green House Farming and Other Green House Equipment. (If used for
agriculture sector)
8430.3100, 8430.3900
9406.0010
1) Tunnel farming equipment.

2) Green houses (prefabricated).
115
116
Plant, machinery and equipment imported for setting up fruit processing

and preservation units in Gilgit-Baltistan, Balochistan Province and
Malakand Division subject to the same conditions and procedure as are
applicable for import of such plant, machinery and equipment under the
Customs Act, 1969 (IV of 1969).
Plant, machinery and equipment imported for setting up industries in
FATA subject to the same conditions and procedure as are applicable for
import of such plant, machinery and equipment under the Customs Act,
1969 (IV of 1969).
Respective headings
Respective headings
Page 33
Sales Tax Act
New insertions are highlighted as red and the serial numbers omitted are not included in the
schedule
Table 2
(Local Supplies only)
Serial
No
(1)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Description
(2)
Supply of cottonseed exclusively meant for
sowing purposes, subject to such conditions
as the Board may specify.
Supply of locally produced crude vegetable
oil obtained from the locally produced seeds
[***], except cooking oil, without having
undergone any process except the process of
washing.
Supplies made by cottage industry
Raw material and intermediary goods
manufactured or produced, and services
provided or rendered, by a registered
person, consumed in-house for the
manufacture of goods subject to sales tax.
omitted
Supply of fixed assets against which input tax
adjustment is not available under a
notification issued in terms of clause (b) of
sub-section (1) of section 8 of the Sales Tax
Act, 1990.
Breads prepared in tandoors and bakeries,
vermicillies, nans, chapattis, sheer mal, bun,
rusk.
Foodstuff cooked or prepared in-house and
served in messes run on the basis of
mutuality and industrial canteens for
workers.
Foodstuff and other eatables prepared in the
flight kitchens and supplied for consumption
on-board in local flights.
Agricultural produce of Pakistan, not
subjected to any further process of
Heading Nos. of the First Schedule to the Customs Act,

1969 (IV of 1969)
(3)
1207.2000.
Respective headings.
Page 34
Sales Tax Act

manufacture.
Supply of ware potato and onions
Omitted
Reclaimed lead, if supplied to recognized
manufacturers of lead batteries
Waste paper
11.
12
13
14
15
(a) Sprinkler Equipment

(b) Drip Equipment
(c) Spray Pumps and nozzles
16
Respective headings
Respective headings
Respective headings
Raw cotton and ginned cotton
0701.9000 and 0703.1000
Respective headings
Highlighted in red are new insertions
Table 3
The plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of
the Annexure below, falling under the HS Codes specified in column (3) of that Annexure, shall be
exempt from the whole of sales tax, subject to the following conditions, besides the conditions
specified in column (4) of the Annexure, namely:(i)
the imported goods as are not listed in the locally manufactured items, notified through a
Customs General Order issued by the Board from time to time or, as the case may be,
certified as such by the Engineering Development Board. This condition shall, however,
not be applicable in respect of S. Nos. 1, 13, and 15 of the Annexure; and for such
machinery, equipment and other capital goods imported as plant for setting up of a new
industrial units provided the imports are made against valid contract(s) or letter(s) of
credit and the total C&F value of such imports for the project is US $50 million or above
(ii)
except for S. No. 9 and 14 of the Annexure, the Chief Executive, or the person next in
hierarchy duly authorized by the Chief Executive or Head of the importing company shall
certify in the prescribed manner and format as per Annex-A that the imported items are
the companys bonafide requirement. He 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. In already computerized
Collectorates or Customs stations where the Pakistan Customs Computerized System is
not operational, the Project Director or any other person authorized by the Collector in
this behalf shall enter the requisite information in the Pakistan Customs Computerized
System on daily basis, whereas entry of the data obtained from the customs stations
which have not yet been computerized shall be made on weekly basis; and
(iii)
in case of partial shipments of machinery and equipment for setting up a plant, the
importer shall, at the time of arrival of first partial shipment, furnish complete details of
Page 35
Sales Tax Act
the machinery, equipment and components required for the complete plant, duly
supported by the contract, layout plan and drawings
Explanation.- For the purpose of Table-3, capital goods mean any plant, machinery, equipment,
spares and accessories, classified in Chapters 84, 85 or any other chapter of the Pakistan Customs
Tariff, required for(a). the manufacture or production of any goods and includes refractory bricks and
materials required for setting up a furnace, catalysts, machine tools, packaging machinery
and equipment, refrigeration equipment, power generating sets and equipment,
instruments for testing, research and development, quality control, pollution control and
the like; or
(b) use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture,
livestock, dairy and poultry industry.
ANNEXURE
S.No
(1)
1
Description
(2)
Machinery and equipment for initial installation,
balancing, modernization, replacement or expansion
of desalination plants, coal firing system, gas
processing plants and oil and gas field prospecting.
Following machinery, equipment, apparatus, and

medical, surgical, dental and veterinary furniture,
materials, fixtures and fittings imported by hospitals
and medical or diagnostic institutes:-
PCT Heading
(3)
Respective
Headings
(1) Dentist chairs

(2) Medical surgical dental or veterinary furniture
9402.1010
9402.9090
(3) Operating Table.

(4) Operating Lights.
(5) Emergency Operating Lights.
9402.9010
9018.9090
9405.4090
9402.9020
9506.9100
(6) Hospital Beds with mechanical fittings

(7). Gymnasium equipment.
(8) Cooling Cabinet.
(9) Refrigerated Liquid Bath.
8418.5000
10) Contrast Media Injections (for use in

Angiography & MRI etc).
(11).Breathing Bags.
12) Automatic blood cell counter.
(13) Automatic Cell Separator for preparation
3824.9099
3822.0000
9020.0020
9018.9090
Conditions
(4)
NIL
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
project requirement shall be
approved by the Board of
Investment (BOI). The authorized
officer of BOI shall certify the
item wise requirement of the
project in the prescribed format
and manner as per Annex-B and
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);
(b) the exception shall be
available on one time basis for
setting up of new projects and
Page 36
Sales Tax Act

B.Cardiology/Cardiac Surgery Equipment
1) Cannulas.
2) Manifolds.
3) Intravenous cannula I.V Catheter.
C. Disposable Medical Devices
1) Self-disabling safety sterile syringes
2) Insulin syringes.
3) Burettes.
9018.3110
9018.3110
7017.9000
E. Other Related Equipments

1) Fire extinguisher.
2) Fixtures & fittings for hospitals
9018.3940
9018.8090
9018.3940
1. Machinery, equipment, materials, capital goods,

specialized vehicles (4x4 non-luxury) i.e. single or
double cabin pickups, accessories, spares, chemicals
and consumables meant for mine construction
phase or extraction phase.
8424.1000
RespectiveH
eadings
expansion of existing ones, and

shall not be available on the
spare parts.
(c) only those importers shall be
eligible to avail the aforesaid
exception whose cases are
recommended and forwarded by
BOI to FBR;
(d) 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 the time of import.
Breach of this condition shall be
construed as a criminal offence
under the Customs Act, 1969 (IV
of 1969)
Respective
Headings
NIL
Respective
Headings
This concession shall be available

to those mining companies or
their authorized operators or
contractors who hold permits,
licenses, leases and who enter
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 companies
with prior approval of the Board
2. Construction machinery, equipment and

specialized vehicles, excluding passenger vehicles,
imported on temporary basis as required for mine
construction or extraction phase.
Coal mining machinery, equipment, spares,

including vehicles for site use i.e. single or double
cabin pick-ups, imported for Thar Coal Field.
Page 37
Sales Tax Act

5
1. Machinery, equipment and spares meant for
initial installation, balancing, modernization,
replacement or expansion of projects for power
generation through oil, gas, coal, wind and wave
energy including under construction projects,
which entered into an implementation agreement
with the Government of Pakistan.
specialized vehicles, excluding passenger
vehicles, imported on temporary basis as
required for the construction of project.
(i) This concession shall also be

available to primary
contractors of the project
upon fulfillment of the
following conditions, namely:(a) the contractor shall submit
a copy of the contract or
agreement under which he
intends to import the goods
for the project;
(b) the Chief Executive or head
of the contracting company
shall certify in the prescribed
manner and format as per
Annex-A that the imported
goods are the projects bona
fide requirement; and
(c) the goods shall not be sold
or otherwise disposed of
without prior approval of the
FBR on payment of sales tax
leviable at
the time of import;
(ii) temporarily imported
goods shall be cleared against
a security in the form of a
post-dated cheque for the
differential amount between
the statutory rate of sales tax
and the amount payable under
this notification, along with an
undertaking to pay the sales
tax at the statutory rates in
case such goods are not reexported on conclusion of the
project.
Page 38
Sales Tax Act

generation through gas, coal, hydel, and oilincluding
under construction projects.
specialized vehicles, excluding passenger vehicles,
imported on temporary basis as required for the
construction of project.
Respective
Headings
-do-

generation through nuclear and renewable energy
sources like solar, wind, micro-hydel bio-energy,
ocean, waste-to-energy and hydrogen cell etc.2.
Construction machinery,equipment and specialized
vehicles, excluding passenger vehicles, imported on
temporary basis as required for the construction of
project.
Explanation.- The expression projects for power
generation means any project for generation of
electricity whether small, medium or large and
whether for supply to the national grid or to any
other user or for in house consumption.
Respective
Headings
-do-
Page 39
Sales Tax Act
1.Machinery and equipment meant for power

transmission and grid stations including under
construction projects.Explanation.- For the purpose
of this serial number, machinery and equipment
shall mean,-(a) machinery and equipment operated
by power of any description, such as is used in the
generation of power;(b) apparatus, appliances,
metering and testing apparatus, mechanical and
electrical control, transmission gear
andtransmission tower, power transmission and
distribution cables and conductors, insulators,
damper spacer and hardware and parts thereof
adapted to be used in conjunction with the
machinery and equipment as specified in clause (a)
above; and(c) components parts of machinery and
equipment, as specified in clause (a) and (b) above,
identifiable for use in or with machinery imported
for the project and equipment including spares for
purposes of the project.2. Construction machinery,
equipment and specializedvehicles, excluding
passenger vehicles, imported on temporary basis as
Respective
Headings
-do-
Page 40
Sales Tax Act
10
Following machinery, equipment and other

education and research related items imported by
technical, training institutes, research institutes,
schools, colleges and universities:- 1) Quartz reactor
tubes and holders designed for insertion into
diffusion and oxidation furnaces for production of
semiconductor wafers.2) Other dryers3) Filtering or
purifying machinery and apparatus for water 4)
Other filtering or purifying machinery and apparatus
for liquids 5) Personal weighing machines, including
baby scales; household scales6) Scales for
continuous weighing of goods on conveyors 7)
Constant weight scales and scales for discharging a
predetermined weight of material into a bag or
container, including hopper scales 8) Other weighing
machinery having a maximum weighing capacity not
exceeding 30 kg9) Other weighing machinery having
a maximum weighingcapacity exceeding 30 kg but
not exceeding 5,000kg 10) Other weighing
machinery 11) Weighing machine weights of all
kinds; parts of weighing machinery of machines of
heading 8423.2000 & 8423.3000 12) Other weighing
machine weights of all kinds; parts of weighing
machinery of machines of heading 8423.2000 &
8423.3000 13) Networking equipments like routers,
LAN bridges, hubs excluding switches and repeaters.
14) Other furnaces and ovens 15) Electronic
balances of a sensitivity of 5 cg or better, with or
without weights. 16) Other balances of a sensitivity
of 5 cg or better, with or without weights. 17)
Thermostats of a kind used in refrigerators and airconditioners 18) Other thermostats 19) Manostats
20) Other instruments and apparatus Hydraulic or
pneumatic 21) Other instruments and apparatus 22)
Parts and accessories of automatic regulating or
controlling instruments and apparatus 23) Spares,
accessories, and reagents for scientific equipments.
Machinery, equipment, raw materials, components
and other capital goods for use in buildings, fittings,
repairing or refitting of ships, boats or floating
structures imported by Karachi Shipyard and
Engineering Works Limited.
11
Following machinery and equipment for marble,

granite and gem stone extraction and processing
industries:
1) Polishing cream or material

2) Hand sharpening and polishing stones.
3) Fiber glass mesh
Respective
Headings
Nil
3405.4000,
3405.9000
6804.3000
7019.5190
1. For the projects of Gem Stone

& Jewelery Industry, CEO/COO,
Pakistan Gem and Jewelery
Company shall certify in the
prescribed format and manner
as per Annex-B that the
imported goods are bonafide
Page 41
Sales Tax Act

5) Chain saw/diamond wire saw in all sizes and
dimensions and spares thereof, diamond wire
joints all types and dimensions, chain for chain
saw and diamond wires for wire saw and spare
widia.thereof, diamond wire joints all types and
dimensions, chain for chain saw and diamond
wires for wire saw and spare widia.thereof,
diamond wire joints all types and dimensions,
chain for chain saw and diamond wires for wire
saw and spare widia.
6) Gin saw blades.
7) Gang saw blades/diamond saw
blades/multiple blades or all types and
dimensions.
8) All interchangeable tools
9) Air compressor (27 cft and above)
8202.4000,
8202.9100
8202.9910
8202.9990
8207.9000
8414.8010
10. Quarry winches (100 ton capacity and

above.8425.3100
84253100
11) Quarry winches and electric motor jacks 30 ton

capacity and above
8425.3900
12). Quarry crane
8426.3000
13). Fork lifter
8427.9000
14) Excavators
8429.5900
15) Ultrasonic machine tools.
8456.2090
16) Sharpening machine
8460.3900
17) All diamond saw machines, diamond tools and

segments.
18) Grinding machines
project requirement. The

authorized person of the
Company 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.
2. For the projects of Marble &
Granite Industry, CEO/COO,
Pakistan Stone Development
Company shall certify in the
prescribed format and manner
project requirement. The
authorized persons of the
relevant information online to
Pakistan Customs Computerized
System against a specific user ID
and password obtained under
section 155D of the Customs
Act, 1969.
3. The goods shall not be sold
period of five years of their
import except with the prior
approval of the FBR and
payment of customs duties and
taxes leviable at the time of
impor
8460.1000 &
Respective
headings
8464.2010
Page 42
Sales Tax Act
19) Polishing machines of all types and dimensions.

20) Other machine tools for working stones
8464.2090 &
Rspective
headings
8464.2000
8467.1100
21) Pneumatic machines and tools.

22) Horizontal and Vertical pneumatic line drilling
machine. Pneumatic grinding Machines
23) Machine and tool for stone work; sand blasting

machines; tungsten carbide tools; diamond tools &
segments (all type & dimensions), hydraulic jacking
machines, hydraulic manual press machines,
air/hydro pillows, compressed air rubber pipes,
hydraulic drilling machines, manual and power
drilling machines, steel drill rods and spring (all sizes
and dimensions), whole finding system with
accessories, manual portable rock drills, cross cutter
and bridge cutters.
24) Integral drilling steel for horizontal and vertical

drilling, extension thread rods for pneumatic super
long drills, tools and accessories for rock drills.
8467.1900
8464.9000 &
Respective
headings
8466.9100
Page 43
Sales Tax Act

12
Machinery, equipment and other project related

items including capital goods, for setting up of
hotels, power generation plants, water treatment
plants and other infrastructure related projects
located in an area of 30 km around the zero point
in Gwadar.
Respective
Headings
8466.9100
13
14
Respective
headings
Effluent treatment plants

Following items with dedicated use of renewable
source of energy like solar, wind, geothermal etc:-
NIL
NIL
1. Solar Home Systems.

8504.4090
a). Inverters.
b). Charge controllers/current controllers.
9032.8990
c). Energy saver lamps of varying voltages

(operating on DC).
8539.3910
d). Energy saver lamps of varying voltages

(operating on AC).
8539.3910
e). Light emitting diodes (light emitting indifferent

colors).
8541.5000
g). Water pumps operating on solar energy.
8541.5000
Page 44
Sales Tax Act
h). Water purification plants operating on solar

energy.
8413.7090,
8413.7010,841
3.2100
i). Batteries NiCd, Li-ion & Lead Acid specific

utilization and integrated with solar electrification
system
8507.3000,
8507.8000
(j) Energy Saving Tube Lights
8539.3920
2. Solar Parabolic Trough Power Plants

a). Parabolic Trough collectors modules.
8502.3900
8503.0010
8503.0090
b). Absorbers/Receivers tubes.

c). Steam turbine of an output exceeding 40MW.
8406.8100
d). Steam turbine of an output not exceeding

40MW.
8406.8200
e). Sun tracking control system.
8543.7090
f). Control panel with other accessories
8537.1090
3. Solar Dish Sterling Engine.
8412.8090
a). Solar concentrating dish.
8543.7000
b). Sterling engine
8543.7000
c). Sun tracking control system.
8543.7090
d).Control panel with accessories
8406.8200
e) Generator
8501.6100
4. Solar Air Conditioning System
8415.1090
a). Absorption chillers.
8418.6990
b). Cooling towers.
8419.8910
c). Pumps.
84132.3090
d). Air handling units.
8415.8200
e). Fan coils units.
8415.9090
f). Charging & Testing equipment.
9031.8000
5. Solar Desalination System
8421.2100
a) Solar photo voltaic panels
8541.4000
b) Solar water pumps
8413.3090
c) Storage batteries.
8507.2090
d) Charge controllers.
9032.8990
e) Inverters.
8504.4090
6. Solar Thermal Power Plants with accessories
8502.3900
Page 45
Sales Tax Act

7. Solar Water Heaters with accessories
8419.1900
a) Vacuum tubes (Glass).
7020.0090
b) Selective coating for absorber plates.
Respective
heading
c) Copper, aluminum and stainless steel sheets.
Respective
heading
d) Copper and aluminum
Respective
heading
8. PV Modules
8541.4000
a). Solar cells.
8541.4000
b) . Tempered Glass.
7007.2900
c) Aluminum frames.
7610.9000
d) O-Ring.
e) Flux
4016.999
3810.1000
f) Adhesive labels.
3919.9090
g) Junction box + Cover
8538.9090
h) Sheet mixture of Paper and plastic
j) Bypass diodes
3920.9900
Respective
headings
8541.1000
k) EVA (Ethyl Vinyl Acetate) Sheet (Chemical).
3920.9900
i) Ribbon for PV Modules (made of silver & Lead)
9. Solar Cell Manufacturing Equipment.

a) Crystal (Grower) Puller (if machine).
8479.8990
b). Diffusion furnace.
8514.3000
c) Oven.
8514.3000
d). Wafering machine
8479.8990
e). Cutting and shaping machines for silicon ingot.
8461.9000
f). Solar grade polysilicon material.
3824.9099
g). Phosphene Gas.
2848.0000
h). Aluminum and silver paste.

9A Pyranometers and accessories for solar data
collection
9B. Solar chargers for charging electronic devices
9C. Remote control for solar charge controller.
Respective
headings
9030.8900
8504.4020
8543.7010
Page 46
Sales Tax Act

8412.8090
10. Wind Turbines.

a). Rotor
8412.909
b). Hub
8412.909
c) Generator
8501.649
d) Deep cycle battery
8507.8
10A. Wind water pump
8413.819
11. Geothermal energy equipments.

8418.6100,
8418.6990
1). Geothermal Heat Pumps

2). Geothermal Reversible Chillers
8418.699
3). Air handlers for indoor quality control

equipments
8415.83
4). Hydronic heat pumps
8418.61
5). Slim Jim heat exchangers
8419.5
6). HDPE fusion tools
8515.8
7). Geothermal energy Installation tools and

Equipment
8419.899
8). Dehumidification equipment
8479.6
9). Thermostats and Intelli Zone
9032.109
12. Any other item approved by the Alternative

Energy Development Board (AEDB) and concurred
to by the FBR.
Following items for promotion of renewable
energy technologies
8539.399
1. LVD induction lamps

15
2. SMD, LEDs with or without ballast with fittings

and fixtures.
9405.109
3. Wind turbines including alternators and mast.
8502.31
4. Solar torches
8513.104
5. Lanterns and related instruments
8513.109
Nil
Page 47
Sales Tax Act
6. PV module, with or without, the related

components including invertors, charge controllers
and batteries
16
Plant, machinery, equipment and specific items

used in production of bio-diesel.
8541.4000,
8504.4090,
9032.8990,
8507.0000
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.
Respective
headings
The Alternative Energy

Development Board (AEDB),
Islamabad shall certify in the
prescribed manner and format
project requirement. The goods
shall not be sold or otherwise
disposed of within a period of
five years of their import except
with the prior approval of the
FBR and payment of customs
duties and taxes leviable at the
time of import.
Page 48
Sales Tax Act

th
Finance Bill proposes to insert new 8 schedule as below
Eight Schedule
See clause (aa) of sub-section (2) of section 3

Table-1
S.
No.
Description
Heading Nos.
of the First
Schedule to the
Customs Act,
1969 (IV of
1969)
(1)
(2)
(3)
(4)
Soyabean meal
2304.000
5%
Oil cake and other solid residues,

whether or not ground or in the
form of pellets
2306.1000
5%
Directly reduced iron
72.03
5%
Rate of
Sales Tax
Conditions
(5)
Oilseeds meant for sowing.
Respective
headings
5%
Import thereof subject to the

condition that Plant Protection
Department of Ministry of 62 Food,
Agriculture and Livestock certifies
that the imported seeds are fungicide
and insecticide treated and are meant
for sowing.
Raw cotton and ginned cotton

Respective headings
Respective
headings
5%
On import
5%
(i) On import of such plant and

machinery by registered
manufacturers, post-dated cheque(s)
equal to the differential amount of
sales tax payable at import stage,
shall be submitted to the customs
authorities, which shall be returned
on furnishing proof of filing of first
sales tax return after import of such
machinery, showing the import of
such machinery;(ii) On import by
commercial importers, good-forpayment cheque, bank guarantee,
Plant and machinery not

manufactured locally and having no
compatible local substitutes
Respective
headings
Page 49
Sales Tax Act

pay order or treasury challan showing
deposit, equal to the differential
amount of sales tax payable at import
stage, shall be submitted to the
customs authorities, which shall be
returned back, or as the case may be,
refunded, after evidence of
subsequent supply to registered
manufacturers or industrial users is
furnished to the customs
authorities;(iii) Supply of such
imported plant and machinery by
commercial importers to unregistered
persons or persons other than
manufacturers shall be liable to
standard rate of tax, and evidence to
that effect shall be produced to the
customs authorities for release of the
abovementioned instruments or
refund of the amount paid at import
stage;(iv) Subsequent supply of plant
and machinery imported or acquired
by registered manufacturers to
unregistered persons or persons
other than manufacturers shall be
liable to tax at standard rate; and(v)
the validity period of instruments
furnished under this provision shall
not be less than one hundred and
twenty days. Explanation. For the
purpose of this provision, plant and
machinery means such plant and
machinery as is used in the
manufacture or production of goods.
Page 50
Sales Tax Act

Table-2
Plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of the
Annexure below, falling under the HS Codes specified in column (3) of that Annexure, shall be
charged to sales tax at the rate of five percent, subject to the following conditions, besides the
conditions specified in column (4) of the Annexure, namely:-
(i). the imported goods as are not listed in the locally manufactured items, notified through a
Customs General Order issued by the Board from time to time or, as the case may be, certified as
such by the Engineering Development Board. This condition shall, however, not be applicable in
respect of S. Nos. 1, 5 and 6 of the Annexure; and for such machinery, equipment and other capital
goods imported as plant for setting up of a new industrial units provided the imports are made
against valid contract(s) or letter(s) of credit and the total C&F value of such imports for the
project is US $ 50 million or above;
(ii) the Chief Executive, or the person next in hierarchy duly authorized by the Chief
Executive or Head of the importing company shall certify in the prescribed manner and
format as per Annex-A that the imported items are the companys bonafide requirement. He
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. In already computerized Collectorates or Customs stations where the Pakistan
Customs Computerized System is not operational, the Project Director or any other person
authorized by the Collector in this behalf shall enter the requisite information in the Pakistan
Customs Computerized System on daily basis, whereas entry of the data obtained from the
customs stations which have not yet been computerized shall be made on weekly basis;
and
(iii) in case of partial shipments of machinery and equipment for setting up a plant, the
importer shall, at the time of arrival of first partial shipment, furnish complete details of the
machinery, equipment and components required for the complete plant, duly supported by
the contract, lay out plan and drawings.
Explanation.-In this Table the expression, capital goods mean any plant, machinery,
equipment, spares and accessories, classified in chapters 84, 85 or any other chapter of the
Pakistan Customs Tariff, required for-
(a) the manufacture or production of any goods, and includes refractory bricks and materials
required for setting up a furnace, catalysts, machine tools, packaging machinery and
equipment, refrigeration equipment, power generating sets and equipment, instruments for
testing, research and development, quality control, pollution control and the like; or
(b) use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock,
dairy and poultry industry.
Page 51
Sales Tax Act
ANNEXURE
S. No
Description
PCT heading
Conditions
(1)
(2)
(3)
(4)
Machinery and equipment for development of

grain handling and storage facilities.
Respective
Headings
Nil
Cool chain machinery and equipment.
Respective
Headings
Nil
Following items imported by Call Centers,

Business Processing Outsourcing facilities duly
approved by Telecommunication Authority.
Nil
2) Fax machines
8504.4010
8504.4090
8443.3260
3) Photo copiers
8443.3910
4) IP Phones
8517.1890
5) Telephone sets/head sets.
8517.1100
6) Dialers
8517.7000
7) Generator.
8502.1200
8) Cat 5/Cat 6/Power cables
8544.4990
9) PAPX Switch
8517.6290
10) Multimedia projectors
8528.6110
11) Video conferencing equipment.
8525.8090
12) CCTV
8525.8010
13) Plasma TV
8528.7212
14) PUDs
8525.8090
15) Dedicated telephone exchange system for

call centers.
8517.6290
16. Parts, voice cards.

17. Other (digital call recorders)
18. VAST terminals
8517.7000
8519.8990
8525.6040
1) UPS, inverters/converters.
Page 52
Sales Tax Act
1. Machinery, equipment, materials, capital

goods, specialized vehicles (4x4 non luxury) i.e.
single or double cabin pickups, accessories,
spares, chemicals and consumables meant for
mineral exploration phase.
Respective
Headings

required for the exploration phase.
5
Complete plants for relocated industries.
Machinery, equipment and other capital goods

meant for initial installation, balancing,
modernization, replacement or expansion of oil
refining (mineral oil, hydrocracking and other
value added petroleum products), petrochemical
and petrochemical downstream products
including fibers and heavy chemical industry,
cryogenic facility for ethylene storage and
handling.
1. This concession shall be

available to those Mineral
Exploration and Extraction
Companies or their authorized
operators or contractors who
hold permits, licenses, leases
and who enter into
agreements with the
Government of Pakistan or a
Provincial Government.
2.Temporarily imported goods
shall be cleared against a
security in the form of a postdated cheque for the
differential amount between
the statutory rate of customs
duty and sales tax and the
amount payable under this
notification, along with an
undertaking to pay the
customs duty and sales tax at
the statutory rates in case
such goods are not reexported on conclusion of the
project.3. The goods shall not
be sold or otherwise disposed
of without prior approval of
the FBR 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
companies with prior
approval of the Board.
Respective
Headings
Respective
Headings
Nil
Nil
Page 53
Sales Tax Act
4) Lifting Unit (Structure)

5) Bolts, tie bolts, anchor bolt assembly
(fastener), anchor screw (fastener).
6) Nuts
7308.9090
(i) If not manufactured locally

and imported by the
construction companies
registered with the Pakistan
Engineering Council;
(ii) the system is to be
procured from a well
renowned international
manufacturer;
(iii) a certificate from one of
the following International
Pre-shipment Inspection
Companies/Survey Firms to
the extent that all the
components/parts are to be
used in the Proprietary
Formwork System for
construction of
structures/buildings of more
than 100 feet height, is
produced, Proprietary
Formwork System for
construction of
structures/buildings of more
than 100 feet height, is
produced, namely:(a) Messrs Lloyds of London;
(b) Messrs Quality Tech, LLC;
(c) Messrs ABS; (d) Messrs
Bureau Veritas; and (e)
Messrs SGS; and (iv) The
Pakistan Engineering Council
shall certify that the imported
Proprietary Formworks
System conform to the
requirement of the
Companys project..
-do-
7318.1590
-do-
7318.1690
-do-
7) Steel pins, tie wing nut (fastener).
7318.1900
-do-
8) Steel washers, water plate (fastener).

9) Special hammers
10) Extraction keys.
7318.2290
8205.2000
8205.5900
-do-do-do-
11) Adjustable base jack (thread rod with nut

and steel plate), adjustable fork head (threaded
rod with nut and steel channel).
8205.4900
-do-
Proprietary Formwork System for

building/structures of a height of 100 ft and
above and its various items/ components
consisting of the following, namely:-
7308.4000
1) Plastic tube.
3917.2390
2) Plastic tie slot filters/plugs, plastic cone.
3926.9099
3) Standard steel ply panels, Special sized steel

ply panels, wedges, tube clamps (B-Type & G
Type), push/pull props, brackets (structure), steel
soldiers (structure), drop head, standard, prop
tic, buard rail post (structure), coupler brace,
cantilever frame, decking beam/Infill beam and
doorway angles.
7308.4000
Page 54
Sales Tax Act

th
Finance Bill proposes to insert new 9 schedule as below

NINTH SCHEDULE
see sub-section (3B) of section 3
(1)
(2)
(3)
Description / Specification of Goods
Sales tax
payable at the
time of import
Sales tax payable at the time

of registration of a new
International Mobile
Equipment Identity (IMEI)
number
A. Low Priced Cellular Mobile Phones or Satellite Phones
Rs. 150 per

phone
Rs. 250 per registration
Rs. 250 per

phone
Rs. 500 per

phone
i. All cameras: 2.0 mega-pixels or less

ii. Screen size: 2.6 inches or less
iii. Key pad
B. Medium Priced Cellular Mobile Phones or Satellite
Phones
i. One or two cameras: between 2.1 to 10 mega-pixels
ii. Screen size: between 2.6 inches and 4.2 inches
iii. Micro-processor: less than 2 GHZ
C. Smart Cellular Mobile Phones or Satellite Phones
i. One or two cameras: 10 mega-pixels and above

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
Page 55
Federal Excise Act
FEDERAL EXCISE ACT, 2005

Highest Retail Pricein certain zones/areas
Section 13
It is proposed that the Board , through a general order, specify zones or areas only for the purpose of
determination of highest retail price of any brand or variety of goods.
Excisable Goods & Rate of Duty
1st Schedule- Table 1
Excisable Goods
Sr.No.
9
10
13
55
Description of Goods
-Locally Produced Cigarettes if their on pack
printed price exceed Rs.2286 per 1000
cigarettes
printed price exceed Rs.2,706 per 1000
cigarettes
printed price does not exceed Rs.2286 per
1000 cigarettes
printed price does not exceed Rs.2706 per
1000 cigarettes
Cement
Motor cars, Sports Utility Vehicles (SUVs)
and other motor cars exceeding 1800cc or
above principally designed for the
transport of passengers
Existing Rate
Rs.2,325
cigarettes
per
Proposed
1000
Rs.2632 per 1000 cigarettes
Rs.880
per
cigarettes
1000
Rs.1,085 per 1000 cigarettes
Rs.400 per matric ton

10% ad.val
5% of the Retail Price

The word imported Motor
Cars is being substituted in
place of Motor Cars to
levy duty on imported cars.
Whereas
the
locally
manufactured cars shall not
be subject to such duty.
Existing Rate
Proposed
Rs.3840/Rs.6840/19.5%
Rs.5000/Rs.10,000/18.5%
EXCISABLE SERVICE
Sr.No.
3.
6.
15
(new)
Description
Facilities for travel
b) travel by air of the passengers embarking
on international journey from Pakistan
i. Economy and Economy Plus
ii. Club, Business or First Class
Telecommunication Services
(Excluding such services in the area of
province where such Province has imposed
Provincial Sales Tax)
Chartered Flights
Sixteen percent
Charges
of
Page 56
the
Customs Act
THE CUSTOMS ACT, 1969

The Finance Bill proposes the following amendments in the Customs Act, 1969:
Customs Station
Section 2(k) (m)
The definition of Custom Station is being merged from two definitions already existed in clause (m) by
including inland river port or any other place declared as such under section 9 and clause (m) is being
omitted.
Goods Dutiable
Section 18- Fifth Schedule
Certain concessions in customs duty through SROs have been prescribed by incorporating in newly
added Fifth Schedule to the Customs Act where subject to certain conditions as set out in the
schedule. In section 18, new subsection 1A is inserted to add the Fifth Schedule to the Customs Act,
1969 to levy specified conditional rates of customs duty on goods and class of goods.
Value of Imported or exported goods
Section 25(5)(d)
To ensure rational applicability of valuation data in cases of imported goods, clause (d) of sub-section (5)
of section 25 omitted. Resultantly, reference to clause (d) in sub-section (6) also omitted.
Word Taxes included alongwith duty
Section 32, 810, 8
In enforcement measures the word taxes is being added alongwith the word duty to remove
any anomaly while taking measures by the Customs Authorities.
Special Judge to have exclusive jurisdiction.
185B
Currently, any offence punishable under the customs Act is not allowed to be tried in any other
court except Special Judge appointed under the provision of the Customs Act, 1969. Now, an
exception is being provided for the Special Courts established under the Control of the Narcotics
Substances Act, 1997 to have powers to try an offence relating to narcotics punishable under this
Act.
Technical Member of Customs Appellate Tribunal
Section 194
Currently, a technical member shall be an officer of Customs and Excise Group equivalent in rank to
that of a Member of the Board or Chief Collector of Customs or Director General or a senior
Collector with five years experience in that position. Now, the words Excise Group is being
deleted being part of Inland Revenue and experience is being reduced from 05 years to three years.
Page 57
Customs Act
First Schedule to the Customs Act, 1969

The Finance Bill proposes the amendments in the duty structure in the first schedule. Maximum duty
rate is being reduced from 30% to 25% and items subject to zero rate duty shall be charged to duty
@1%. Other Changes in the Duty Rates are given below;
1. Items on which Duty is being reduced other than where duty rate has been decreased from
30% to 25%.
8517.1230
8523.4110
8523.4120
8523.4190
8523.4920
8523.4930
8523.4990
1108.1200
2710.1995
8504.4010
2713.1100
- - - Satellite mobile phone, whether or not functional on

cellular networks
- - - Compact disc (CD)
- - - Digital versatile discs (DVD)
- - - Other
- - - Discs for laser reading system containing audio
material
- - - Discs for laser reading system containing images or
video material
- - - Other
- - Maize (corn) starch
- - - -Liquid paraffin
- - - Un-interrupted power supply (UPS) of power rating
upto 1.5 kVA
- - Not calcined
Proposed
10
Existing'
25
10
10
10
10
20
20
20
20
10
20
10
15
10
15
20
20
15
20
2. Items for which the duty rates has been Increased other than items where duty increased
from 0% to 1%
1108.1300
2710.1996
3204.1100
3206.4990
7225.3000
7225.4000
7225.5000
7225.9100
7225.9200
7225.9900
7226.1100
7226.1900
7226.2000
7226.9100
7226.9200
7226.9900
- - Potato starch
- - - -White oil
- - Disperse dyes and preparations based thereon
- - - Other
- Other, not further worked than hot- rolled, in coils
- other, not further worked than hot- rolled, not in coils
- Other, not further worked than cold- rolled (coldreduced)
- - Electrolytically plated or coated with zinc
- - Otherwise plated or coated with zinc
- - Other
- - Grain-oriented
- - Other
- Of high speed steel
- - Not further worked than hot-rolled
- - Not further worked than cold-rolled (coldreduced)
- - Other
Proposed
15
10
15
10
10
10
10
Existing'
10
5
10
5
5
5
5
10
10
10
10
10
10
10
10
10
5
5
5
5
5
5
5
5
5
Page 58
Customs Act
8421.1900
8502.1390
8504.4090
8517.6210
8517.6220
8517.6230
8517.6240
8517.6250
8517.6260
8517.6910
8517.6920
8517.6940
8517.6950
8517.6960
8517.6990
8523.4910
8525.6010
8525.6020
8525.6060
8525.6070
8527.9910
2106.9030
3204.1590
3204.1910
3204.1990
7225.1100
7225.1900
- - Other
- - - Other
- - - Other
- - - Voice fequency telegraphy
- - - Modems
- - - High bit rate digital hierarchy system (SDH)
- - - Digital loop carrier system (DLC)
- - - Synchronous digital hierarchy system (SDH)
- - - Multiplexers, statistical multiplexers
- - - ISDN system
- - - ISDN terminal adapters
- - - Subscriber end equiment
- - - Set top boxes for gaining access to internet
- - - Attachements for telephones
- - - Other
- - - containing software
- - - Blue tooth whether or not capable of connecting to an
automatic data processing machine
- - - Radio paging apparatus
- - - Vehicle tracking system
- - - Modems
- - - Modems
- - - Flavouring powders for preparation of food
- - - Other
- - - Dyes, sulphur
- - - Dyes, synthetic
- - Grain-oriented
- - Other
10
5
15
10
10
10
10
10
10
10
10
10
10
10
10
10
10
5
0
10
5
5
5
5
5
5
5
5
5
5
5
5
5
5
10
10
10
10
20
15
15
15
10
10
5
5
5
5
10
5
5
5
0
0
Page 59
Customs Act
FIFTH SCHEDULE
Section 18
Part-I
Imports of Plant, Machinery, Equipment and Apparatus,
Including Capital Goods for various industries/sectors
Note:- For the purposes of this Part, the following conditions shall apply besides the conditions
as specified in column (5) of the Table below:(i). the imported goods as are not listed in the locally manufactured items, notified through a
Customs General Order issued by the Federal Board of Revenue (FBR) from time to time or, as
the case may be, certified as such by the Engineering Development Board; and for such
machinery and equipment imported as plant for setting up of a new industrial units provided
the imports are made against valid contract (s) or letter (s) of credit and the total C&F value of
such imports for the project is US $ 50 million or above;
(ii) except for S. No. 1(E), 15, 23 and 24 of the Table, the Chief Executive, or the person next in
hierarchy duly authorized by the Chief Executive or Head of the importing company shall
certify in the prescribed manner and format as per Annex-A that the imported items are the
companys bonafide requirement. He 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). In already computerized Collectorates or Customs
stations where the Pakistan Customs Computerized System is not operational, the Director
Reforms and Automation or any other person authorized by the Collector in this behalf shall
enter the requisite information in the Pakistan Customs Computerized System on daily basis,
whereas entry of the data obtained from the customs stations which have not yet been
computerized shall be made on weekly basis; and
(iii) in case of partial shipments of machinery and equipment for setting up a plant, the
importer shall, at the time of arrival of first partial shipment,
furnish complete details of the machinery, equipment and components required for the
complete plant, duly supported by the contract, lay out plan and drawings.
Explanation.- Capital Goods mean any plant, machinery, equipment, spares and accessories,
classified in chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, required for(a) the manufacture or production of any goods, and includes refractory bricks and materials
required for setting up a furnace, catalysts, machine tools, packaging machinery and
equipment, refrigeration equipment, power generating sets and equipment, instruments for
testing, research and development, quality control, pollution control and the like; and
(b) use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock,
dairy and poultry industry;
Page 60
Customs Act
FIFTH SCHEDULE-PART 1
Imports of Plant, Machinery, Equipment and Apparatus, including Capital Goods for various industries/sectors
S.No
Descripition
PCT Code
Custom
Duty (%)
Conditions
(1)
1.
(2)
(3)
(4)
(5)
Agricultural Machinery
(A) Fertilizer and Plant Protection
Equipment.
1) Spray pumps (diaphragm type).
8413.8190
5%
2) All types of mist blowers.
8414.8090
5%
If used for agriculture

sector.
(B) High Efficiency Irrigation and Drainage

Equipment.
1) Submersible pumps (up to 75 lbs and head
150 meters) and field drainage pumps.
2) Sprinklers including high and low pressure
(center pivotal) system, conventional
sprinkler equipment, water reel traveling
sprinkler, drip or trickle irrigation equipment,
mint irrigation sprinkler system.
(3) Air release valves, pressure gauges, water
meters, back flow preventers and automatic
controllers
(C) Harvesting and Threshing Machinery.
1) Fodder rake.
2) Pruner / shears
3) Fodder/forage wagon.

sector.
8413.701
0%
8424.8100
8424.2010
0%
8481.1000,
8481.3000
9026.2000
9032.8990
0%
sector.
8201.3000
5%
Respective
headings
8716.8090
5%
5%
(D) Dairy, Livestock and Poultry, Machinery.

1) Milk chillers
2) Tubular heat exchanger (for
pasteurization).
3) Milk processing plant, milk spray drying
plant, Milk UHT plant.
4) Grain storage silos for poultry.
5) Insulated sand witch panels
6) Dairy, Livestock and poultry sheds.
7) Milk filters.
8418.6910
8418.6990
5%
8419.5000
5%
8419.8100
8419.3900
Respective
heading
Respective
heading
9406.0020
8421.2900

sector.
5%
5%
5%
5%
5%
Page 61
Customs Act
(E) Green House Farming and Other Green
House Equipment.
1) Geo-synthetic liners (PP/PE Geo synthetic
films of more than 500 microns).
2) Green houses (prefabricated).
3921.9010,
3921.9090
9406.001
5%
5%
0%
3) Tunnel farming equipment consisting of

the following:-
3920.1000
0%
a. Plastic covering and mulch film.
3926.9099
0%
b. Anti-insect net.
5,608.1900
c. Shade net.
(F) Machinery, Equipment and Other Capital
Goods for Miscellaneous Agro-Based
Industries like Milk Processing, Fruit,
Vegetable or Flowers Grading, Picking or
Processing etc.
1) Evaporators for juice concentrate.
5608.9000
0%
8419.8990
5%
2) Machinery used for dehydration and

freezing.
3) Heat exchange unit.
8419.3100
8418.6990
8419.5000
5%
4) Machinery used for filtering and refining

of pulps/juices.
5) Complete Rice Par Boiling Plant.
8421.2200
5%
8419.8990&
other
Respective
Headings
5%
0%
5%
1. In respect of goods
mentioned in Column (2)
read with PCTs mentioned
in Column (3), the Ministry
of National Food Security
and Research shall certify
in the prescribed manner
and format as per Annex-B
to the effect that the
imported goods are
bonafide requirement for
use in the Agriculture
sector. The Authorized
Officer of the Ministry
information online to
Pakistan Customs
Computerized System
against a specific user ID
and password obtained
under section 155D of the
Customs Act, 1969.
2. The goods shall not be
sold or otherwise disposed
of within a period of five
years of its import except
with the prior approval of
the FBR and on payment of
leviable duties and taxes.
1. In respect of goods of
mentioned in Column (2)
read with PCTs mentioned
in Column (3), the Ministry
of National Food Security
and Research shall certify
in the prescribed manner
and format as per Annex-B
to the effect that the
imported goods are
bonafide requirement for
use in the Agriculture
sector. The Authorized
Officer of the Ministry
information online to
Pakistan Customs
Computerized System
Customs Act, 1969.
Page 62
Customs Act
(G) Horticulture and Floriculture
1) Machines for making cartons, boxes,
cases, tubes, drums or similar containers,
other than by moulding
2) PU panels (Insulation).
3) Generator sets 10 to 25 KVA.
4) Refrigerating machines with engine fitted
on common base for refrigerated containers.
5) Other refrigerating or freezing chests,
cabinets.
6) Tubes, pipes and hollow profiles of iron
and steel.
7) Hand tools.
(H) Fish or shrimp farming and seafood
processing machinery and equipment.
(1) Compressor
3.
4.
8441.3000
5%
Respective
headings
8502.1120
8502.1130
8418.6920
5%
8418.5000
5%
7304.3100
7304.3900
Respective
Headings
5%
5%
5%
5%
sector.
8414.8090
5%
5%
(3) Condenser
(4) Flat freezer
8502.1130
8502.1190
8502.1200
8418.9990
8418.3000
(5) Boast freezer
8418.4000
5%
(6) Fiber glass tubs

(7) Insulated plants
7019.9090
8418.6990
5%
5%
(8) Flak ice plants
8414.6990
5%
Machinery and equipment for development

of grain handling and storage facilities
including silos.
Cool chain machinery and equipment.
Respective
Headings
5%
Nil
Respective
Headings
5%
Nil
(2) Generator
2.

sector.
5%
5%
Following items imported by Call Centers,

Business Processing Outsourcing facilities
duly approved by Telecommunication
Authority.
1) Telephone sets/headsets.
8517.1100
15%
2) Cat 5/Cat 6/Power cables.
8544.4990
15%
3) PAPX Switch.
8517.6290
15%
4) Plasma TV.
8528.7212
15%
5) Dedicated telephone exchange system for

call centers.
6) Other (digital call recorders)
8517.6290
15%
8519.8990
15%
Nil
Page 63
Customs Act
5.
Machinery and equipment for initial

installation, balancing, modernization,
replacement or expansion of desalination
plants, coal firing system, gas processing
plants and oil and gas field prospecting.
6.
Following machinery, equipment,

apparatus, and medical, surgical, dental and
veterinary furniture, materials, fixtures and
fittings imported by hospitals and medical
or diagnostic institutes:-
Respective
Headings
5%
Nil
a)The project requirement

shall be approved by the
Board of Investment (BOI).
The Authorized Officer of
BOI shall certify the item
wise requirement of the
project in the prescribed
format and manner as per
Annex-B and 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);
(b) the goods shall not be
of without prior approval
of the FBR and the
payment of customsduties and taxes at
statutory rates be leviable
at the time of import.
Breach of this condition
shall be construed as a
criminal offence under the
Customs Act, 1969 (IV of
1969).
A. Medical Equipment.
1) Dentist chairs .
9402.1010
5%
2) Medical surgical dental or veterinary

furniture.
3) Operating Table.
9402.9090
5%
9402.9010
5%
4) Emergency Operating Lights.

5) Hospital Beds with mechanical fittings.
9405.4090
9402.9020
5%
5%
6) Gymnasium equipment.
9506.9100
5%
7) Cooling Cabinet.
8) Refrigerated Liquid Bath.
8418.5000
3824.9099
5%
5%
9) Contrast Media Injections (for use in

Angiography & MRI etc).
3822.000
5%
B. Cardiology/Cardiac Surgery Equipment
-do-
-do-
Page 64
Customs Act
1) Cannulas.
9018.3940
5%
2) Manifolds.
3) Intra venous cannula i.v. catheter.
8481.8090
9018.3940
5%
5%
C. Disposable Medical Devices

1) Self disabling safety sterile syringes.
2) Insulin syringes.

goods, specialized vehicles (4x4 non luxury)
i.e single or double cabin pickups,
accessories, spares, chemicals and
consumables meant for mineral exploration
phase.
required for the exploration phase.
9018.3110
9018.3110
5%
5%
-do-
E. Other Related Equipments

1) Fire extinguisher.
2) Fixtures & fittings for hospitals
7.
-do-
8424.1000
Respective
Headings
Respective
Headings
5%
0%
1. This concession shall be

available to those Mineral
Exploration and Extraction
Companies or their
authorized operators or
contractors who hold
permits, licences, leases
and who enter into
agreements with the
Government of Pakistan or
a Provincial Government.
2. Temporarily imported
goods shall be cleared
against a security in the
form of a post dated
cheque for the differential
amount between the
statutory rate of customs
customs duty and sales tax
at the statutory rates in
case such goods are not
re-exported on conclusion
of the project.
of the FBR 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 companies
with prior approval of the
Board.
Page 65
Customs Act
8.
9.
10.

goods, specialized vehicles (4x4 non luxury)
i.e. single or double cabin pickups,
accessories, spares, chemicals and
consumables meant for mine construction
phase or extraction phase. Imports made
for mine construction phase shall also be
entitled to deferred payment of duty for a
period of five years. However a surcharge @
6% per annum shall be charged on the
differed amount.
2.
Construction machinery, equipment and
required for mine construction or extraction
phase.
Coal mining machinery, equipment, spares
including vehicles for site use i.e. single or
double cabin pickups for site use imported
for Thar Coal Field.
Respective
Headings
5%
-do-
Respective
Headings
0%
1. Machinery, equipment and spares meant

for initial installation, balancing,
modernization, replacement or expansion
of projects for power generation through
oil, gas, coal, wind and wave energy
including under construction projects, which
entered into an implementation agreement
with the Government of Pakistan.
Respective
Headings
5%
(i)This concession shall be

available to those Mining
Companies or their
authorized operators or
contractors who hold
permits, licences, leases
and who enter into
agreements with the
Government of Pakistan or
a Provincial
Government.(ii)The goods
shall not be sold or
otherwise disposed of
without prior approval of
the Board and the
time of import. These
shall, however, be allowed
to be transferred to other
entitled mining companies
with prior approval of the
Board.
(i)This concession shall
also be available to
primary contractors of the
project upon fulfillment of
the following conditions,
namely:-
(a) the contractor shall

submit a copy of the
contract or agreement
under which he intends to
Page 66
Customs Act
import the goods for the
project;
(b) the chief executive or

head of the contracting
company shall certify in
the prescribed manner and
format as per Annex-A that
the imported goods are
the projects bona fide
requirements; and
(c)the goods shall not be
14
11.

gas, coal, hydel and oil including under
construction projects.
Respective
Headings
5%

of the FBR on payment of
customs-duties and taxes
leviable at the time of
import;
(ii) temporarily imported
goods shall be cleared
against a security in the
form of a post-dated
cheque for the differential
amount between the
statutory rate of customs
customs duty and sales tax
at the statutory rates in
case such goods are not
re-exported on conclusion
of the project.
-do-
Page 67
Customs Act
12.
13.
14.

nuclear and renewable energy sources like
solar, wind, micro-hydel bio-energy, ocean,
waste-to-energy and hydrogen cell etc.
Explanation.- The expression projects for
power generation means any project for
generation of electricity whether small,
medium or large and whether for supply to
the national grid or to any other user or for
in house consumption.
1. Machinery and equipment meant for
power transmission and grid stations
including under construction projects.
Explanation.- For the purpose of this
concession machinery and equipment shall
mean:(a) machinery and equipment operated by
power of any description, such as used in the
generation of power;
(b) apparatus, appliances, metering and
testing apparatus, mechanical and electrical
control, transmission gear and transmission
tower, power transmission and distribution
cables and conductors, insulators, damper
spacer and hardware and parts thereof
adapted to be used in conjunction with the
machinery and equipment as specified in
clause (a) above; and
c) Components parts of machinery and
equipment, as specified in clauses (a) and (b)
above, identifiable for use in or with
machinery imported for the project and
equipment including spares for the purposes
of the project.
required for the construction of the project.
Complete plants for relocated industries.
Respective
Headings
0%
-do-
Respective
Headings
5%
-do-
Respective
Headings
10%
Nil
Page 68
Customs Act
15.
Following machinery, equipment and other

education and research related items
imported by technical institutes, training
institutes, research institutes, schools,
colleges and universities:1) Quartz reactor tubes and holders designed
for insertion into diffusion and oxidation
furnaces for production of semiconductor
wafers.
2) Other dryers.
Nill
7017.1010
0%
8419.3900
0%
3) Filtering or purifying machinery and

apparatus for water.
4) Other filtering or purifying machinery and
apparatus for liquids.
5) Personal weighing machines, including
baby scales; household scales.
6) Scales for continuous weighing of goods
on conveyors.
7) Constant weighing scales and scales for
discharging a predetermined weight of
material into a bag or container, including
hopper scales
8) Other weighing machinery having a
maximum weighing capacity not exceeding
30 kg.
9) Other weighing machinery having a
maximum weighing capacity exceeding 30 kg
but not exceeding 5,000kg.
10) Other weighing machinery.
8421.2100
0%
8421.2900
0%
8423.1000
0%
8423.2000
0%
8423.3000
0%
8423.8100
0%
8423.8200
0%
8423.8900
0%
11) Weighing machine weights of all kinds;

parts of weighing machinery of machines of
heading 8423.2000 & 8423.3000.
12) Other weighing machine weights of all
kinds; parts of weighing machinery of
machines of heading 8423.2000 & 8423.3000
.
13) Networking equipments like routers, LAN
bridges, hubs excluding switches and
repeaters.
14) Other furnaces and ovens.
8423.9000
0%
8423.9000
0%
8517.6970
0%
8514.3000
0%
15) Electronic balances of a sensitivity of 5 cg

or better, with or without weights.
16) Other balances of a sensitivity of 5 cg or
better, with or without weights.
17) Thermostats of a kind used in
refrigerators and air-conditioners.
18) Other thermostats.
9016.0010
0%
9016.0090
0%
9032.1010
0%
9032.1090
0%
19) Manostats.
9032.2000
0%
Page 69
Customs Act
16.
17.
18.
19.
20) Other instruments and apparatus

hydraulic or pneumatic.
21) Other instruments and apparatus.
9032.8100
0%
9032.8990
0%
22) Parts and accessories of automatic

regulating or controlling instruments and
apparatus.
23) Spares, accessories and reagents for
scientific equipments.
Machinery, equipment, raw materials,
components and other capital goods for use
in buildings, fittings, repairing or refitting of
ships, boats or floating structures imported
by Karachi Shipyard and Engineering Works
Limited.
Machinery, equipment and other capital
goods meant for initial installation,
balancing, modernization, replacement or
expansion of oil refining (mineral oil, hydrocracking and other value added petroleum
products), petrochemical and petrochemical
downstream products including fibers and
heavy chemical industry, cryogenic facility
for ethylene storage and handling.
9032.9000
0%
Respective
Headings
Respective
Headings
0%
0%
Nil
Respective
Headings
5%
Nil
Respective
Headings
10%
Nil
Machinery and equipment imported by an

industrial concern.
Following machinery and equipment for
marble, granite and gem stone extraction
and processing industries.
1) Polishing cream or material.
3405.4000
3405.9000
5%
2) Fiber glass mesh

3) Chain saw/diamond wire saw in all sizes
and dimensions and spares thereof, diamond
wire joints all types and dimensions, chain
for chain saw and diamond wires for wire
saw and spare widia.
4) Gin saw blades.
7019.5190
5%
5%
5) Gang saw blades/ diamond saw blades/

multiple blades or all types and dimensions.
6) Air compressor (27cft and above).
8202.9990
5%
8414.8010
5%
8202.4000
8202.9100
8202.9910
5%
1. For the projects of Gem

Stone & Jewelry Industry,
CEO/COO, Pakistan Gem
and Jewelry Company shall
certify in the prescribed
format and manner as per
Annex-B that the imported
goods are bonafide project
requirement. The
authorized person of the
relevant information
online to Pakistan Customs
Computerized. System
Page 70
Customs Act
20.
7) Machine and tool for stone work; sand

blasting machines; tungsten carbide tools;
diamond tools & segments (all type &
dimensions), hydraulic jacking machines,
hydraulic manual press machines, air/hydro
pillows, compressed air rubber pipes,
hydraulic drilling machines, manual and
power drilling machines, steel drill rods and
spring (all sizes and dimensions), whole
finding system with accessories, manual
portable rock drills, cross cutter and bridge
cutters.
8)Integral drilling steel for horizontal and
vertical drilling, extension thread rods for
pneumatic super long drills, tools and
accessories for rock drills.
8464.9000&
Respective
headings
5%
8466.9100
5%
1. Machinery, equipment and other project

related items including capital goods, for
setting up of power generation plants,
water treatment plants and other
infrastructure related projects located in an
area of 30 km around the zero point in
Gwadar.
2. Machinery, equipment and other project
related items for setting up of hotels
located in an area of 30 km around the zero
point in Gwadar.
Respective
Headings
0%
Respective
Headings
5%

Customs Act, 1969.
2. For the projects of
Marble & Granite Industry,
CEO/COO, Pakistan Stone
Development Company
shall certify in the
prescribed format and
manner as per Annex-B
that the imported goods
are bonafide project
requirement. The
authorized persons of the
Computerized System
Customs Act, 1969.
of within a period of five
years of their import
except with the prior
time of import.
1. Ministry of Industries,
Production & Special
Initiatives, shall certify in
the prescribed manner and
format as per Annex-B that
the imported goods are
bonafide project
requirement. The
authorized officer of the
Ministry shall furnish all
Computerized System
Customs Act, 1969.
Page 71
Customs Act
21.
Proprietary Formwork System for

building/structures of a height of 100 ft and
above and its various items/ components
consisting of the following, namely:-
7308.4000
10%
1) Plastic tube.
3917.2390
10%
2) Plastic tie slot filters/plugs, plastic cone.
3926.9099
10%
3) Standard steel ply panels, Special sized

steel ply panels, wedges, tube clamps (BType & G Type), push/pull props, brackets
(structure), steel soldiers (structure), drop
head, standard, prop tic, buard rail post
(structure), coupler brace, cantilever
frame,decking beam/Infill beam and
doorway angles.
7308.4000
10%
4) Lifting Unit (Structure).
7308.9090
10%

of the FBR and payment of
customs duties and taxes
leviable at the time of
import.
(i) Imported by the
construction companies
registered with the
Pakistan Engineering
Council;
(ii) the system is to be
procured from a well
renowned international
manufacturer;
(iii) a certificate from one
of the following
International Pre-shipment
Inspection
Companies/Survey Firms
to the extent that all the
components/parts are to
be used in the Proprietary
Formwork System for
construction of
structures/buildings of
more than 100 feet height,
is produced, namely:(a) Messrs Lloyds of
London; (b) Messrs Quality
Tech, LLC; (c) Messrs ABS;
(d) Messrs Bureau Veritas;
and (e) Messrs SGS; and
(iv) The Pakistan
Engineering Council shall
certify that the imported
Proprietary Formworks
System conform to the
requirement of the
Companys project.
-do-
5) Bolts, tie bolts, anchor bolt assembly

(fastener), anchor screw (fastener).
6) Nuts.
7318.1590
10%
-do-
7318.1690
10%
-do-
7) Steel pins, tie wing nut (fastener).
7318.1900
10%
-do-
8) Steel washers, water plate (fastener).
7318.2290
10%
-do-
9) Adjustable base jack (thread rod with nut

and steel plate), adjustable fork head
(threaded rod with nut and steel channel).
8425.4900
10%
-do-
Page 72
Customs Act
22.
Effluent treatment plants.
23.
Following items with dedicated use of

renewable source of energy like solar, wind,
geothermal etc:-
Respective
headings
5%
Nil
Nil
1. Solar Home Systems.

a). Inverters.
b). Charge controllers/current controllers.
c). Energy saver lamps of varying voltages
(operating on DC).
d). Energy saver lamps of varying voltages
(operating on AC).
e). Light emitting diodes (light emitting
indifferent colors).
f). Water pumps operating on solar energy.
g). Water purification plants operating on
solar energy.
h) Batteries NiCd, Li-ion & Lead Acid specific
utilization and integrated with solar
electrification system.
8504.4090
9032.8990
0%
0%
8539.3910
0%
8539.3910
8541.5000
8413.7090,
8413.7010
8421.2100
8507.3000
0%
0%
0%
0%
0%
8507.8000
(i) Energy Saving Tube Lights.

2. Solar Parabolic Trough Power Plants.
a). Parabolic Trough collectors modules.
8539.3920
8502.3900
8503.0010
0%
0%
0%
b). Absorbers/Receivers tubes.
8503.0090
0%
c). Steam turbine of an output exceeding

40MW.
d). Steam turbine of an output not exceeding
40MW.
e). Sun tracking control system.
f). Control panel with other accessories.
8406.8100
0%
8406.8200
0%
8543.7090
8537.1090
0%
0%
3. Solar Dish Sterling Engine.
8412.8090
0%
a). Solar concentrating dish.

b). Sterling engine.
8543.7000
8543.7000
0%
0%
c). Sun tracking control system.
8543.7090
0%
d).Control panel with accessories.

e) Generator
8406.8200
8501.6100
0%
0%
4. Solar Air Conditioning System

a). Absorption chillers.
8415.1090
8418.6990
0%
0%
b). Cooling towers.
8419.8910
0%
c). Pumps.
d). Air handling units.
8413.3090
8415.8200
0%
0%
e). Fan coils units.
8415.9099
0%
f). Charging & Testing equipment.
9031.8000
0%
5. Solar Desalination System
8421.2100
0%
Page 73
Customs Act
a) Solar photo voltaic panels.
8541.4000
0%
b) Solar water pumps.

c) Storage batteries.
8413.3090
8507.2090
0%
0%
d) Charge controllers.
9032.8990
0%
e) Inverters.
8504.4090
0%
6. Solar Thermal Power Plants with

accessories.
7. Solar Water Heaters with accessories.
a) Vacuum tubes (Glass).
8502.3900
0%
8419.1900
7020.0090
0%
0%
b) Selective coating for absorber plates.
Respective
heading
Respective
heading
Respective
heading
0%
8541.4000
8541.4000
0%
c) Copper, aluminum and stainless steel

sheets.
d) Copper and aluminum tubes.
8. PV Modules.
a). Solar cells.
0%
0%
0%
0%
7007.2900
b) . Tempered Glass.
c) Aluminum frames.
0%
7610.9000
4016.9990
d) O-Ring.
0%
0%
e) Flux.
f) Adhesive labels.
g) Junction box + Cover.
h) Sheet mixture of Paper and plastic
3810.1000
3919.9090
8538.9090
3920.9900
0%
i) Ribbon for PV Modules (made of silver &

Lead).
j) Bypass diodes.
Respective
headings
8541.1000
0%
k) EVA (Ethyl Vinyl Acetate) Sheet (Chemical).
3920.9900
0%
9. Solar Cell Manufacturing Equipment.

a) Crystal (Grower) Puller (if machine).
8479.8990
0%
b). Diffusion furnace.
8514.3000
0%
c) Oven.
d). Wafering machine.
8514.3000
8479.8990
0%
0%
e). Cutting and shaping machines for silicon

ingot.
f). Solar grade polysilicon material.
8461.9000
0%
3824.9099
0%
g). Phosphene Gas.
2848.000
0%
h). Aluminum and silver paste.
Respective
headings
0%
10. Pyranometers and accessories for solar

data collection.
11. Solar chargers for charging electronic
devices.
12. Remote control for solar charge
controller.
0%
0%
0%
9030.8900
5%
8504.4020
5%
8543.7010
5%
Page 74
Customs Act
13. Wind Turbines.
a). Rotor.
8412.8090
8412.9090
0%
0%
b). Hub.
8412.9090
0%
c) Generator.
d) Deep cycle battery.
8501.6490
8507.8000
8413.8190
0%
0%
5%
8418.6100,
8418.6990
8418.6990
0%
3). Air handlers for indoor quality control

equipments.
4). Hydronic heat pumps.
8415.8300
0%
8418.6100
0%
5). Slim Jim heat exchangers.

6). HDPE fusion tools.
8419.5000
8515.8000
0%
0%
7). Geothermal energy Installation tools and

Equipment.
8). Dehumidification equipment.
8419.8990
0%
8479.6000
0%
9). Thermostats and IntelliZone.
9032.1090
0%
16. Any other item approved by the

Alternative Energy Development Board
(AEDB) and concurred to by the FBR.
Following items for promotion of renewable
energy technologies:1. LVD induction lamps
Respective
headings
0%
8539.3990
0%
2. SMD, LEDs with or without ballast with

fittings and fixtures.
3.Wind turbines including alternators and
mast.
4. Solar torches.
9405.1090
0%
8502.3100
0%
8513.1040
0%
5. Lanterns and related instruments.
8513.1090
0%
6. PV module, with or without, the related

components including invertors, charge
controllers and batteries
8541.4000,
8504.4090,
9032.8990,
8507.0000
Respective
headings
0%
14. Wind water pump

15. Geothermal energy equipments.
1). Geothermal Heat Pumps.
2). Geothermal Reversible Chillers.
24.
25.
Plant, machinery, equipment and specific

items used in production of bio-diesel.
0%
Nil
0%
The Alternative Energy

Development Board
(AEDB), Islamabad shall
certify in the prescribed
manner and format as per
Annex-B that the imported
requirement. The goods
otherwise disposed of
within a period of five
Page 75
Customs Act
26.
Plant, machinery and equipment imported

for setting up fruit processing and
preservation units in Gilgit-Baltistan,
Balochistan and Malakand Division.
Respective
headings
0%
27.
Plant, machinery and equipment imported

for setting up Industries in FATA.
Respective
headings
0%
years of their import

except with the prior
time of import.
The plant, machinery and
equipment released under
the said serial number
shall not be used in any
other area which is not
eligible for the said
concession. In case of
violation, duty and taxes
shall be recovered beside
initiation of penal action
under the Customs Act,
1969.
The plant, machinery and
equipment under the said
serial number shall be
released on certification
from Additional Chief
Secretary, FATA that the
requirement of the Unit as
per Annex-B. The goods
otherwise disposed off
without prior approval of
the Board.
Page 76
Customs Act
FIFTH SCHEDULE Part-II
Import of Active Pharmaceutical Ingredients, Excepients/Chemicals,
Drugs, Packing Material/ Raw Materials for Packing and Diagnostic Kits and
Equipments, Components and other Goods
The Imports under this part shall be subject to following conditions, namely.(i) The active pharmaceutical ingredients, Excepients /chemicals, packing material and raw material
for packing shall be imported only for in-house use in the manufacture of specified pharmaceutical
substances, as approved by the Drug Regulatory Agency of Pakistan.
(ii) The requirement for active pharmaceutical ingredients and Excepients/chemicals, drugs as
specified in Table A, B & C, shall be determined by the Drug Regulatory Agency of Pakistan;
(iii) The requirement for packing materials/raw materials for packing, as specified in Table-D, shall
be determined by Input Output Coefficient Organization,
(iv) The designated/authorized representative person of Drug Regulatory Agency of Pakistan shall
furnish all relevant information, as set out in this part, online to the Customs computerized system,
accessed through the unique user identifier obtained under section 155 d of the Customs Act, 1969,
along with the password thereof.
Fifth Schedule-Part II- Table A
(Active Pharmaceutical Ingredients)
S.
No
1
2
3
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Description
Flurbiprofen
Aspirin
Amlodipine
Deferiprone
Lamivudine
Loratadine
Pantoprazole Sodium (Injec Grade)
Risedronate Sodium
Fexofenadine
Ebastine
Isoniazid
Omeprazole Pellets
Moxifloxacin
Protacine (Proglumet, Dimaleate)
Sparfloxacin
Atorvastatin
Amiloride HCL
Candesartan Cilextle
Pheneramine Maleate
Pioglitazone HCL
HS Code
Customs duty (%)
2916.3990
2918.2210
2933.3990
2933.3990
2933.3990
2933.3990
2933.3990
2933.3990
2933.3990
2933.3990
2933.3990
2933.3990
2933.4990
2933.5990
2933.5990
2933.9990
2933.9990
2933.9990
2933.9990
2934.1090
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
Page 77
Customs Act
22
23
24
25
26
27
28
29
30
2935.0060
2935.0090
2935.0090
Sulphanilamide
Gliclazide
Piperazine Anhydrous (Pharmaceutical grade).
Celecoxib
Glibenclamide
Thiocolchicoside
Hydrochlorothiazide
Alfacalcidole
(i) Amoxicillin sodium sterile BP
(ii) Ampicillin sodium sterile USP/BP
(Pharmaceutical grade)
(iii) Bacampicillin HCL
(iv) Carbenicillin and its salts
(v) Carfecillin
5%
5%
2935.0090
2935.0090
2935.0090
2935.0090
2936.9000
2941.1000
5%
5%
5%
5%
5%
5%
5%
2941.5000
2941.5000
2941.5000
2941.9090
2941.9090
2941.9090
2941.9090
2941.9090
2941.9090
2941.9090
3005.9010
3005.9090
3501.9000
3824.9099
3824.9099
3913.9090
3920.9900
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
(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
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
(xiv) Sultamicillin (Pharmaceutical grade)

(xv) Ticarcilin disodium
(xvi) Piperacillin Sodium
Clarithromycin Powder
Roxithromycin
Clarithromycine Granules
Azithromyein
Fusidic Acid
Gentamyein
Rifampicin
Ceftriaxone
Cefotaxime
D-Cycloserine
Acrinol Pad
Benzalkonium Chloride Pad (BKC)
Sodium Casinate
Activated Glucuronate
Losartan Potassium
Chondrotin Sulphate
Polyethylene Film
Page 78
Customs Act
48
Acid Hypophosphosous
Respective
heading
Acid Pipmidc Trydae

Acid Citric Anhydrous
Propylparaben (Aseptoform-P)
Methylparaben Aseptoform-M)
Carbinoxamine Maleate
Euflavine Bp (Acriflavine)
Vancomycin Hcl
Dextro-Methorph Hbr
Acyclovir Usp
Sodium Benzoate
Sodium Sulfate
Cupric Chloride
Enoxacin Sesquihfrtae
Mama Copolymer
Sodium Valproate
Sodium Cyclamate
Magnesium Hydroxide Paste
Diphenhydramine
Alprazolam
Bacitracin Usp Powder Microniz
Chloromycetin Palmitate
Chlorpheniramine Maleate
Esmomeprazole Magnesium Ec
Fluconazole
Glipizide
Neomycin Sulphate
Polymyxin B Sulphate USP Micro
Lorazepam
Nystatin Usp Powder
Ferric Pyrophosphate Nf
Alprazolam
Pyritinol Base Fine Powder
Pyritinol Di-Hcl Mono Hydrate
Bisacodyl
Sodium Picosulphate
Carbamazepine
Co-Dergocrine Ms (Gram) A 01
Clemastine Hydrogen Fumarate
Calcium Lactobionate Oral
Clamipramine Hcl Ep
Imipramine Hydrochlor/Ds 01
Oxcarbazepine Fine/Ds 05
Calcium Lactobionate Special Grade
Temazepam Usp 28/Ep 4th Ed
Levocetirizine Dihydrochloride
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
Page 79
Customs Act
Bromocriptine Ms(G) Msa/Ds 01
Pindolol Base/Ds Pur
Clopamide Base/Ds 01
Pindolol Base
Nimesulide
Enalapril Maleate Usp 23
Cetirizin Dihydrocholoride Ep
Famotidine
Fluoxetine Hcl
Doxycycline Hydrochloride Bp
Captopril
Simvastatin Ep
Cefaclor Monohydrate
Lactulose
Albendazole - Human Grade
Clobetasol Propionate
Betamethasone Base
Betamethasone 17-Valerate
Bacitracin Zinc Bp (69 Mcg/Mg)
Hydrcortisone Acetate Micronised
Hydrocortisone Usp Micro
Clotrimazole
Clindamycin Phosphate
Cetirizine Dihydrochloride
Fluconazole
Minocycline Hydrochloride
Neomycin Sulph Bp 700 U/Mg Mic
Nystatin (Mycostatin Micropul)
Triprolidine Hcl B.P (94%)
Ferrous Sulphate
Polymyxin B Sulph Bp 8000 U/Mg
Procyclidine Hcl
Mupirocin
Artemether
Lumefantrine
Desmoder H/Hexamethylen Di-Iso
Erythrocin J
Furosemide (Imp)
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
Glimepiride Granules 0.606% (W/W (1 Mg)

Ketoprofen
5%
5%
Fifth Schedule-Part II- Table B

(Excepients/Chemicals)
S.
No
Description
HS Code
Customs duty (%)
Page 80
Customs Act
1
2
Worked grains of other cereals.

Sterillisable maize (corn) starch
3
4
5
6
7
8
9
10
11
Gum Benjamin BP (Pharmaceutical grade)

(i) Balsam, Tolu BP/USP.
(ii) Gum acacia powder BP
(iii) Gumbenzoin, Styrax, Tragacanth,
Xanthan(Pharmaceutical grades)
Other vegetable saps and extracts
Other mucilages and thickeners
(i) Rhubarb leaves or roots.
(ii) Valerine roots (Pharmaceutical grade)
Refined palm kernel or babassu oil
Other fixed vegetable fats and oils
Castor oil (Pharmaceutical grade)
Vegetable fats and oils (Pharmaceutical grade)
12
13
14
15
16
Sugar (pharmaceutical grade) if imported by

manufacturer of pharmaceutical Products ion
the quantity to be determined by Ministry of
Health
(i) Dextrate(Pharmaceutical grade).
(ii) Dextrose (injectable grade and
pharmaceutical grade)
Malt extract (Pharmaceutical grade)
Ethyl alcohal
(i) Sodium chloride (NaCl).
(ii) Sodium chloride (injectable grade)
(Pharmaceutical grades)
17
18
19
20
21
Oils and other products of the distillation of

high temperature coal tar (Pharmaceutical
grade)
Liquid paraffin (Pharmaceutical grade).
Plastibase (Pharmaceutical grade)
Microcrystalline petroleum wax, ozokerite,
lignite wax, peat wax and other mineral waxes
Iodine (Pharmaceutical grade)
1104.2900
5%
1108.1200
5%
1301.2000
5%
1301.9090
5%
1302.1900
5%
1302.3900
5%
1404.9090
5%
1513.2900
5%
1515.1900
5%
1515.3000
1516.2010
1516.2020
1701.9910
5%
5%
1702.3000
5%
1901.9010
2207.1000
2501.0090
5%
5%
5%
2707.9990
5%
5%
2710.1995
2710.9900
2712.9090
5%
2801.2000
5%
5%
5%
Page 81
Customs Act
22
23
24
Boric acid (Pharmaceutical grade)

Phosphorous pentachloride (Pharmaceutical
grade)
(i) Sodium hydroxide
(ii) Sodium hydroxide solid or aqueous solution
25
26
27
Disodium sulphate (Pharmaceutical grade)

Sodium sulphate anhydrous (Pharmaceutical
grade)
Sodium hydrogen carbonate (sodium
bicarbonate) (Pharmaceutical grade)
28
2810.0020
5%
2812.9000
2815.1100
5%
5%
2833.1100
5%
2833.1900
5%
2836.3000
5%
2905.4400
5%
29
30
31
32
Dglucitol (Sorbitol) (Pharmaceutical grade).

Acetone (Pharmaceutical grade)
Formic acid (Pharmaceutical grade)
Acetic acid
Acetic anhydride (Pharmaceutical grade)
2914.1100
2915.1100
2915.2100
2915.2400
5%
5%
5%
5%
33
34
35
Ethyl acetate (Pharmaceutical grade)

Stearic acid (Pharmaceutical grade)
(i) Butyl phthalate
2915.3100
2915.7010
2917.3410
5%
5%
5%
2918.2900
5%
2918.2900
2933.5990
5%
5%
2933.9100
5%
2933.9100
2933.9990
5%
5%
2934.1090
5%
(ii) Dibutylphthalate (Pharmaceutical grade)

36
37
38
Hydroxy benzoic acid (Pharmaceutical grade)

Propyl Paraben Sodium Salt
{[(4-ethyl-2,3-dioxo-1-piperazinyl)Carbonyl
amino}-4 hydroxy-benzene acetic acid (HOEPCP) (Pharma grade)
39
40
41
42
N-Methyl morpholine (Pharmaceutical grade)

Methanone
1-H-tetrazole-1-acetic
acid[TAA](Pharmaceutical grade)
(i) 2-Methyl-5-mercepto 1,3,4hiazole[MMTD];
(ii) (Z)-2)2-aminothiazole-4-yl)-2-TertButoxycarbonyl) methoxyimnno Acetic acid
(ATMA);
(iii) (Z)-2-(2-aminothaizole-4-yl)2-2(tertButoxycarbonyl)- isopropoxyimino Acetic
Acid[ATIBAA or ATBA;
(iv) Sin-methoxyimino Furanyl Acetic acid
Ammonium Salt(SIMA);
5%
5%
5%
Page 82
Customs Act
(v) 7-{[2-Furany(sin- methoxyimino)acetyl]
amino}-3-hydroxymethyl ceph-3-em-4carboxyclic acid(Pharma grade);
43
44
45
46
47
48
49
50
51
52
53
Mica Ester
(+)-(IS,2S)-2-methylamino-1- phenylpropan-I-ol
base
Chlorophyll (Pharmaceutical grade)
Edible ink (Pharmaceutical grade)
Non-ionic surface-active agents
Other surface-active agents (Pharma grade)
(i) Alkyl aryl sulfonate.
(ii) Ampnocerin K or KS (Pharma grade)
Casein
(i)Modified starches (Pharmaceutical grade).
(ii)Rich starch
Pencillin G. Amidase enzyme
5%
2934.1090
2939.4900
5%
5%
3203.0090
3215.1990
3402.1300
3402.1990
5%
5%
5%
5%
3402.9000
5%
3501.1000
3505.1090
5%
5%
3507.9000
3802.1000
5%
5%
3802.9000
5%
3823.1100
3823.7000
5%
5%
3907.9900
5%
3912.2010
5%
Activated carbon (Pharmaceutical grade).

54
55
56
57
58
Other activated natural mineral products

(Pharmaceutical grade).
Stearic acid (Pharmaceutical grade)
Industrial fatty alcohols (Pharmaceutical grade)
Polyglyceryl ricinoleates (Pharmaceutical
grade)
Cellulose nitrates nonplasticised
Fifth Schedule-Part II- Table C

(Drugs)
S. No
1
2
3
4
5
Description
Dextrose (injectable grade and
pharma grade)
Sodium chloride (injectable grade)
Oseltamivir
Zanamivir
All types of vaccines for Hepatitis,
Interferon and other medicines for
hepatitis, and etc.
All vaccines and antisera
HS Code
Customs duty (%)
1702.3000
10%
2501.0090
5%
2922.4990
2924.2990
3002.2090
0%
0%
0%
Respective
0%
Page 83
Customs Act
7
8
9
10
11
12
13
14
15
16
17
18
19
Antihemophilic factor ix (Human)

Blood fraction & immunological
products (biological products)
including rabies immunological (150
IU per ml) (Human)
Factor viii & plasma derived fibrin
sealant. (Human)
Hepatits B immunoglobuline
(Human)
Human albumin (Human)
Intravenous immunoglobuline
(Human)
Intramuscular immunoglobuline
(Human)
Tatanus immunoglobuline (250
IU/ml) (Human)
Injection Anti-Dimmunoglobulin
(human) 300mcg/vial
Medicinal eye Drops
Ointments, medicinal
Alfacalcidole Injection
All medicines of cancer. An
illustrative list is given below,
namely:(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
headings
3002.2090
3002.2090
0%
0%
3002.2090
0%
3002.2090
0%
3002.2090
3002.2090
0%
0%
3002.2090
0%
3002.2090
0%
3002.9010
0%
3004.9050
3004.9060
3004.9099
3004.9099
10%
10%
0%
0%
Page 84
Customs Act
(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
(xli) Ibandronic acid
(xlii) Ifosfamide
(xliii) Imatinibmisilate
(xliv) Irinotecan
(xlv) Lenograstim
(xlvi) Letrozole
(xlvii) Leuprorelin
(xlviii) Lomustine
(xlix) Medroxyprogesterone
(l) Megestrol
(li) Melphalan
(lii) Mercaptopurine
(liii) Methotrexate
(liv) Mitomycine
(lv) Mitoxantrone
(lvi) Octreotide
(lvii) Ondensetron
(Iviii) Oxaliplatin
(lix) Paclitaxel
(lx) Pemetrexed
(lxi) Procarbazine
(lxii) Rituximab
(Ixiii) Sorafenib (as tosylate)
(lxiv) Tamoxifen
(lxv) 6-Thioguanine
(Ixvi) Topotecan
(lxvii) Trastuzumab
(Ixviii) Tretinoin
Page 85
Customs Act
20
21
(lxix) Triptorelin Acetate

(lxx) Tropisetron
(lxxi) Vinblastine
(lxxii) Vincristine
(lxxiii) Vinorelbine
(lxxiv) Zoledronic Acid
Ixxv) Tasigna(Nilotinib)
Ixxvi) Temozolomide
All medicines of Cardiac. An
namely:(i) Abeiximab
(ii) Adenosine
(iii) Contrast Media for angiography
MRI (lopamidol and lohexol Inj. and
etc.)
(iv) Dopamine/Dobutamiune
(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
All medicines for HIV/AIDS. An
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
3004.9099
5%
0%
0%
3004.9099
0%
Page 86
Customs Act
22
(xiii) Zaduvidine
(xiv) Zalcitabine
All medicines for thalassaemia. An
namely:(i) Deferasirox
(ii) Defriprone
(iii) Desferrioxamine Mesylate
23
24
25
26
27
28
29
30
31
32
Drug used for kidney dialysis and

kidney transplant, Hemodialysis
solution/ concentrate and Peritoneal
dialysis solution/concentrate, List of
drugs is given below, namely:Azathioprin
Basilliximab
Cyclosporine
Daclizumab
Everolimus
Muromonab-CB3
Mycophenolic acid
Mycophenolic acid and its salts
Beclomethasone Aerosol
Cyclosporine Injection
Cyclosporine Microemulsion
Cap/Solution and etc
Erythropoietin Injection, Epoetinbeta
Erythopotin alpha
Ipratropium Bromide Aerosol
Salbutamol Aerosol
Sodium Fusidate Injection
Vancomycin Chromatographically
Purified Injection
Analgesic Medicated Plaster
3004.9099
0%
3004.9099
0%
3004.9099
3004.9099
3004.9099
0%
0%
0%
3004.9099
0%
3004.9099
3004.9099
3004.9099
3004.9099
0%
0%
0%
0%
3004.9099
0%
Fifth Schedule-Part II- Table D

(Packing Materials/Raw Materials for Packing)
S. No
Description
HS Code
Customs duty (%)
Blood Bags CPDA-1: With blood

transfusion set pack in Aluminum foil
with set.
Surgical tape in jumbo rolls
Cetylpyridinium chloride pad
Polyacrylate (Acrylic Copolymers)
Respective
Heading
0%
3005.1010
3005.9090
3906.9090
5%
5%
5%
2
3
4
Page 87
Customs Act
5
6
7
PVC non-toxic tubing

PVC lay flat tube material grade
3917.2390
5%
3917.3100
5%
Pre-printed polypropylene tubes

with tamper proof closures (with or
without dessicant) indicating
particulars of registered drug and
manufacturer (Pharmaceutical
grade)
3917.3910
5%
3919.1090
5%
3920.4910
10%
3920.4990
3923.1000
5%
5%
3923.2100
5%
3923.2900
5%
3923.3090
5%
3923.5000
5%
3926.9099
4016.9990
5%
5%
4206.0000
5%
4810.3900
5%
4811.4100
5%
4811.5990
5%
9
10
11
12
13
14
15
16
17
18
19
20
21
Other self-adhesive plates, sheets,

film, foils, strip and other flat shapes
of plastic (Pharmaceutical grade)
Rigid PVC Film (Pharmaceutical
grade)
PVC/PVDC (Pharmaceutical grade)
(i) Plastic eye baths.
(ii) Printed viskerings
Printed poly bags for infusion sets
(Pharma grade)
Non-toxic plastic bags for I.V.
solutions and other infusions
Plastic nebulizer or dropper bottles
(Pharma grade).
Stopper for I.V. Solutions
Piston caps
(i) 13 mm Rubber stoppers for
injections.
(ii) 20 mm and 32 mm Rubber
stopper for injections
Collagen strip (catgut)
Medical bleached craft paper with
heat seal coating (Pharmaceutical
grade)
(i) Self adhesive paper and paper
board.
(ii) Cold seal coated paper
Paper and paper board coated,
impregnated or covered with plastic
Page 88
Customs Act
41[21A
22
23
24
25
26
27
28
29
Paper Core for Surgical Tape

(Pharmaceutical Grade)
(i) Other packing containers,
including record sleeves
(ii) Glassine sleeve (Pharmaceutical
grade)
Laminated heat sealable paper
Kraft paper (wax coated)
Non woven paper
Non woven fabric
Coated Fabric
Empty glass infusion bottle with and
without graduation USP II
4822.9000
5%
4819.5000
5%
4811.4900
4811.6010
4811.9000
5603.9200
5903.9000
7010.1000
5%
5%
5%
5%
5%
5%
(i) Neutral glass cartridges with

rubber dices and plungers and
aluminium seals.
7010.9000
5%
7607.1990,
7607.2000
5%
(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
30
(i) Aluminum foil, printed coated

with mylar polyester or surlyn
monomer resin on one side and
vinyl coating on the other side
indicating 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
Page 89
Customs Act
(vi) Printed Aluminium Bag for I.V.
Solutions/Infusion
31
7612.9090
5%
8309.9000
5%
9018.3200
5%
9018.3910
5%
(i) Anodized aluminium bottle.

(ii) Rubber plug tear off seal. (iii)
Closing lid (aluminium A1, High
density polyethylene/polypropylene)
(Phamaceutical Grade)
32
33
34
(i) Stoppers for I.V. solutions. (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)
Eyeless sutures needles
Non-toxic plastic bags for I.V.
solutions of dextrose and other
infusions (Pharmaceutical grade)
(Diagnostic Kits/Equipments)
S. No
Description
HS Code
Customs duty (%)
1
2
3
4
5
6
7
8
9
10
11
12
4C Es Trionyx
5C Cell control Lnormal
Albumin bcg
Alkaline phosphatase (Alb)
Ammonia Modular
Aslo tin
Bilirubin kit
Blood cancer kit
Blood glucose test strips
Bovine precision multi sera
Breast cancer kit
CBC Reagent (For hematology analyzer)
Complete blood count reagent
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
0%
13
14
15
16
17
18
Cervical cancer/HPV kit

Ck creatinin kinase (mb)
Ck nac
Control
Control Sera
Cratinin sysi
3822000
3822000
3822000
3822000
3822000
3822000
5%
5%
5%
5%
5%
5%
Page 90
Customs Act
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
Crp control
Detektiion cups
DNA SSP DRB GenricIC
Elisa Eclia Kit
Ferritin kit
Glulcose kit
HCV
HCV amp
Hcy
Hdl Cholesterol
Hdl/ldl chol
HEV (Hepatitis E virus)
HIV Kits
Hla B27
I.C.T. (Immunochromatographic kit)
ID-DA Cell
Ige
Immunoblast (western blot test).
Inorganic Phosphorus kit
ISE Standard
Kit amplicon kit (for PCR)
Kit for vitamin B12 estimation
Kits for automatic cell separator for
collection of platelets
Lac
Lc hsv
Ldh kit (lactate dehydrogenase kit)
Lipids
Liss Coombs
NA/K/CL
Oligo
Pac
PCR kits
Pregnancy test
Protein kit
Proteins
Reticulocyte count (control) Retic C
Control
Ring
Standard or calibrator
Strips for sugar test
Tina quant
Typhoid kit
U
U/CSF
Ua plus
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
5%
5%
5%
0%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
0%
5%
5%
5%
5%
5%
5%
5%
0%
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
5%
5%
5%
5%
5%
5%
5%
5%
0%
5%
5%
5%
5%
3822000
3822000
3822000
3822000
3822000
3822000
3822000
3822000
5%
5%
5%
5%
5%
5%
5%
5%
Page 91
Customs Act
63
UIBC (Unsaturated iron binding capacity)
Urea uv kit
Urine Analysis Strips
Urine test strips
Vitros Diagnostic kit
64
65
66
67
3822000
5%
3822000
3822000
3822000
3822000
5%
5%
5%
5%
Part-III
Import of Raw Materials, Inputs for Poultry and
Textile Sector and Other Goods
The imports under this part shall be subject to following conditions, besides the conditions specified in
the Table given below namely:(i) The designated/authorized person of the following Ministries, or as the case may be, companies shall
furnish all relevant information as detailed in the table below on line to the Customs Computerized
System, accessed through the unique users identifier obtained under section 155d of the Customs Act,
1969, along with the password thereof, namely:(a) Ministry of Industries, Production and Special Initiatives, in case of imported goods specified against
serial numbers 14 of Table;
(b) M/s Lottee Chemical Pakistan Ltd, in case of imported goods specified against serial number 15 of
Table;
(c) Ministry of Live stock and Dairy Development, in case of goods, specified against serial number 12 of
Table.
(ii) The importer shall file the Goods Declaration online through Pakistan Customs Computerized System
where operational, and through a normal hard copy in the Collectorates/Custom-stations, in which the
Pakistan Customs Computerized System is not operational as yet.
(iii) In already computerized Collectorates and Custom-stations where the Customs Computerized
System is not yet operational, the Director Reforms and Automation or any other authorized officer shall
feed the requisite information about clearance/release of goods under this notification in the Customs
Computerized System on daily basis, and the data obtained from the Custom-stations, which have not
yet been computerized, on weekly basis.
Part-III
Import of Raw Materials, Inputs for Poultry and
Textile Sector and Other Goods
S. No
Description
HS Code
Fresh and Dry Fruits from Afghanistan
Wheat
Cane Sugar
8.00
10.01
1701.1300,
1701.1400
Customs
duty (%)
5%
0%
0%
Condition
Of Afghanistan
origin and imported
from Afghanistan
Nil
If imported by
private sector
Page 92
Customs Act
4
Beet Sugar
1701.1200
0%
5
6
7
8
9
10
11
12
White crystalline cane sugar

White crystalline beet sugar
Soyabean meal
Growth promoter premix
Vitamin premix
Choline Chloride
Mineral premix
Cattle Feed Premix
1701.9910
1701.9920
2304.0000
2309.9020
2309.9020
2309.9020
2309.9020
2309.9020
0%
0%
5%
5%
5%
5%
5%
5%
13
14
15
16
Vitamin B12 (feed grade)

Vitamin H2 (feed grade)
Fish Feed
2309.9090
2309.9090
2309.9090
2309.9090
5%
5%
5%
5%
Nil
Nil
Nil
Nil
5%
This facility shall be

available for dairy
sector, subject to
certification by the
Ministry of Livestock
and Dairy
Development.
7.50%
0%
Nil
If imported by the
Phosphatic Fertilizer
Industry, notified by
the Ministry of
Industries.
17
Poultry feed preparation (coccidiostats)

Calf Milk Replacer(CMR)(color dyed)
2309.9090
18
19
High Speed Diesel

Phosphoric acid
2710.1931
2809.20100
20
Para xylene,
21
22
23
24
Acetic acid
PTA
Concenstrated Coccidiostats
Furazolidone (feed grade)
Poultry vaccines
2902.4300
2915.2100
2917.3610
2933.3990
2934.9910
3002.3000
0%
4%
5%
5%
5%
If imported by
private sector
Nil
Nil
Nil
Nil
Nil
Nil
Nil
This facility shall be
available for dairy
sector, subject to
certification by the
Ministry of Livestock
and Dairy
Development.
If imported by M/s.
Lottee Chemical
Pakistan Ltd
Nil
Nil
Nil
Nil
Page 93
Customs Act
25
26
27
Anticoccidal namely Amprolium,

Diaverdine, Decoquinate, Furaltadone,
Menadione, Sodaluminium ,
Pyrimethamine, Toltrazuril
Sulphadimerzine (mixture form with any
other anticoccidial)
Sulphaqunoxaline (mixture form with any
other anticoccidial)
28
29
30
Products registered under the agriculture

pesticides ordinance, 1971
Other pesticides
3004.3900
5%
Nil
3004.3900
5%
Nil
3004.3900
5%
Nil
3808.917
0%
Nil
3808.9199
3808.9310
0%
0%
Nil
Nil
3808.9390
0%
Nil
3808.9390
3907.601
3907.602
0%
4%
8.5%
3907.6090
3908.1000
8.5%
3%
3908.9000
5109.1000
3%
9%
Nil
Nil
5109.9000
9%
Nil
5401.1000
9%
Nil
5402.1100
5402.1900
5402.3100
9%
9%
9%
Nil
Nil
Nil
5402.3200
9%
Nil
5402.3400
5402.3900
9%
9%
Nil
Nil
Herbicides, anti-sprouting products and

plant growth regulators
31
32
33
34
35
36
37
38
Herbicides, anti-sprouting products and

plant growth regulators
Other
Pet Resin Yarn Grade
Pet Resin Film Grade
Pet Resin Bottle Grade

Polyamide-6, -11, -12, -6, 6, -6, 9, -6, 10 or 6, 12
Other polyamides in primary form
Containing 85% or more by weight of wool
or of fine animal hair
39
Nil
Nil
If imported by
BOPET Film
Manufacturers.
Nil
Nil
Other yarn of wool or fine animal hair

40
41
42
43
Sewing thread of synthetic filaments,

whether or not put up for retail sale, High
tenacity yarn of nylon or other polyamides
Of aramids
Other
Textured yarn of nylon or other polyamides,
measuring per single yarn not more than 50
tex
44
45
46
Textured yarn of nylon or other polyamides,

measuring per single yarn more than 50 tex
Textured yarn of polypropylene
Other of textured yarn, Other yarn, single,
untwisted or with a twist not exceeding 50
turns per meter.
Page 94
Customs Act
47
48
49
Yarn of nylon or other polyamides

Yarn of polypropylene
Other Yarn, single, with a twist exceeding
50 turns per meter:
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
Other Yarn, multiple (folded) or cabled:

Of nylon or other polyamides
Other Yarn
High tenacity yarn of viscose rayon
yarn of viscose rayon, untwisted or with a
twist not exceeding 120 turns per meter
Of cellulose acetate
Other
Of cellulose acetate
Other
Elastomeric
Of polypropylene
Other yarn
Strip and like
Artificial monofilament of 67 decitex or

more and of which no cross-sectional
dimension exceeds 1mm; strip and the like
(for example, artificial straw) of artificial
textile materials of an apparent width not
exceeding 5 mm.
Synthetic filament yarn
Artificial filament yarn
Of polyesters
Acrylic or modacrylic
Of polypropylene
Filament tow of other polymers
Artificial filament tow
Of polyesters not exceeding 2.22 decitex
Of other polyester
Of polypropylene
Other synthetic staple fibre
Of synthetic fibers
Of artificial fibers
Of polyesters
Other synthetic staple fibre
Single yarn
Multiple (folded) or cabled yarn
5402.4800
5402.4800
5402.49
7%
9%
9%
Nil
Nil
Nil
5402.59
9%
Nil
5402.61
5402.69
5403.1
5403.31
9%
9%
9%
9%
Nil
Nil
Nil
Nil
5403.33
5403.399
5403.42
5403.49
5404.11
5404.12
5404.19
5404.9
5405
9%
9%
9%
9%
9%
9%
9%
9%
9%
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
5406.0000
5406.0000
5501.2000
5501.3000
5501.4000
5501.9000
5502.0090
5503.2010
9%
9%
6.5%
6.5%
6.5%
6.5%
6.5%
6%
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
5503.2090
5503.3000
5503.4000
5503.9000
5505.1000
5505.2000
5506.2000
5506.3000
5506.9000
5509.1100
5509.1200
6%
6.5%
6.5%
6.5%
6.5%
6.5%
6.5%
6.5%
6.5%
9%
9%
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Page 95
Customs Act
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
Single yarn
Single yarn
Mixed mainly or solely with wool or fine
animal hair
Mixed mainly or solely with cotton
Other yarn of acrylic or modacrylic staple
fibers
Mixed mainly or solely with wool or fine
animal hair
Mixed mainly or solely with cotton
Other yarn
Single yarn
Other yarn, mixed mainly or solely with
wool or fine
Other yarn, mixed mainly or solely with
cotton
Other yarn
Of artificial staple fibers
Silver
Gold
Defence stores, excluding those of the
National Logistic Cell
5509.3100
5509.3200
5509.4100
5509.4200
5509.6100
9%
9%
9%
9%
9%
Nil
Nil
Nil
Nil
Nil
5509.6200
5509.6900
9%
9%
Nil
Nil
5509.9100
9%
Nil
5509.9200
5509.9900
5510.1100
5510.1200
5510.2000
9%
9%
9%
9%
9%
Nil
Nil
Nil
Nil
Nil
5510.3000
9%
Nil
5510.9000
5511.3000
71.06
71.08
93.00 &
Respective
headings
9%
9%
0%
0%
10%
Nil
Nil
Nil
Nil
If imported by the
Federal Government
for the use of
Defence Services
provided that the
goods have not
been imported
against the foreign
exchange allocation
of the Defence
Department.
Part-IV
Miscellaneous
S.
No
1
2
3
4
5
6
Description
Potatoes
Tomatoes, fresh or chilled.
Onions and shallots
Garlic
Cauliflowers and headed broccoli
Peas (Pisum sativum)
HS Code
Customs duty (%)
0701.9000
0702.0000
0703.1000
0703.2000
0704.1000
0713.1000
0%
0%
0%
0%
0%
0%
Page 96
Customs Act
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Grams (dry whole)

Grams split
Other
Beans of the species Vigna mungo (L.)Hepper
or Vigna radiata (L.)Wilczek
Small red (Adzuki) beans (Phaseolus or vigna
angularis)
Kidney beans, including white pea beans
(Phaseolus vulgaris)
Bambara beans (Vigna subterranea or
Voandzeia subterranea)
Cow peas (Vigna unguiculata)
Green beans (dry whole)
Green beans (split)
Other
Dry whole
Split
0713.2010
0713.2020
0713.2090
0713.3100
0%
0%
0%
0%
0713.3200
0%
0713.3300
0%
0713.3400
0%
0713.3500
0713.3910
713.3920
713.3990
713.4010
713.4020
713.50000
0%
0%
0%
0%
0%
0%
0%
713.6000
0%
713.9010
0%
713.9020
713.9030
713.9090
2709.0000
0%
0%
0%
0%
2710.1210
2710.1220
2710.1230
2710.1911
2710.1912
2710.1913
2710.1919
2710.1921
2710.1941
2710.1998
2711.1100
2711.1200
2711.1300
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Broad beans (Vicia faba var. major) and horse

beans(Vicia faba var. equina, Vicia faba
var.minor)
21
Pigeon peas (Cajanus cajan)
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Black matpe (dry whole)

Mash dry whole
Mash split or washed
Other
Petroleum oils and oils obtained from
bituminous minerals, crude
Motor spirit
Aviation spirit
Spirit type jet fuel
Kerosene
J.P.1
J.P.4
Other
Light diesel oil
Furnace oil
Spin finish oil
Natural gas
Propane
Butanes
Page 97
Customs Act
40
41
42
43
Ethylene, propylene, butylene and butadiene

L.P.G.
Natural gas
2711.1400
0%
2711.1910
2711.2100
2905.3100
0%
0%
0%
3102.1000
0%
3102.2100
3102.2900
3102.3000
0%
0%
0%
3102.4000
0%
3102.5010
3102.5090
3102.6000
0%
0%
0%
3102.8000
0%
3102.9000
0%
3103.1000
3103.9000
3104.2000
3104.3000
3104.9000
3105.1000
0%
0%
0%
0%
0%
0%
3105.2000
0%
3105.3000
0%
3105.4000
0%
Ethylene glycol (ethanediol) (MEG)

44
45
46
47
Urea, whether or not in aqueous solution

Ammonium sulphate
Other
Ammonium nitrate, whether or not in
aqueous solution
48
49
50
51
52
Mixtures of ammonium nitrate with calcium

carbonate or other inorganic non fertilising
substances
Crude
Other
Double salts and mixtures of calcium nitrate
and ammonium nitrate
Mixtures of urea and ammonium nitrate in
aqueous or ammoniacal solution
53
54
55
56
57
58
59
Other, including mixtures not specified in the

foregoing subheadings
Superphosphates
Other
Potassium chloride
Potassium sulphate
Other
Goods of this Chapter in tablets or similar
forms or in packages of a gross weight not
exceeding 10 kg
60
Mineral or chemical fertilisers containing the
three fertilising elements nitrogen,
phosphorus and potassium
61
Diammonium hydrogenorthophosphate
(diammonium phosphate)
62
Ammoniumdihydrogen orthophosphate
(monoammonium phosphate) and mixtures
thereof with diammonium
hydrogenorthophosphate (diammonium
phosphate)
Page 98
Customs Act
63
64
65
66
67
68
Containing nitrates and phosphates

Other
Mineral or chemical fertilisers containing the
two fertilising elements phosphorus and
potassium
Other
Holy Quran(Arabic text with or without
translation)
Digital Quran
3105.5100
0%
3105.5900
3105.6000
0%
0%
3105.9000
4901.9910
0%
0%
8523.8050
0.
Page 99
Income Tax Ordinance
INCOME TAX ORDINANCE, 2001

Filer/Non Filer
Section 2, Clauses 23A & 35C
Although Income tax is paid by around 70% of the population of Pakistan but it is through enforcement
of Withholding Tax Regime where income tax is being collected at source. The number of Tax Return
Filers is very low. Due to this reason the ambit of withholding regime is being increased but
documentation of the economy could not improve where compliance to taxation laws remained very
low due to lack of tax culture. It has been a long time grievance of taxpayers that the lack of
enforcement of tax law means that the cost of doing business for a person who is a compliant tax payer
is higher than non-compliant persons. To have ample state revenues through direct taxes, several
measures have been proposed this year that are aimed at promoting tax culture. This has been done by
proposing higher rate of taxes for non-filers i.e, persons who have not filed returns for preceding year,
as compared to filers.
For the reason stated above, the finance bill proposes to include the definition of filer & Non-filer in the
Ordinance in the definition section 2. Filer means a taxpayer whose name appears in the active
taxpayers list issued by the Board from time to time or is holder of a taxpayers card & Non-filer
means a person who is not a filer.
Taxation of Bonus Shares
Section 2, Clause 29, Section 236M

& Section 39
A company has the option to issue dividend or bonus shares to its shareholders. In case of issuance of
dividend, tax is deducted @ 10% in the hands of shareholders but no tax is deducted or payable on
issuance of bonus shares. This is due to the reason that bonus shares were excluded from the definition
of income.
Now, Finance bill proposes that bonus shares be treated as dividend and tax is to be collected at the rate
of 5% of the ex-bonus price of the shares which will be final tax liability in the hands of the person
receiving that bonus shares.
Stock Fund
Section 2, Clause 61A
Finance bill proposes to insert in a new section to define Stock Fund, means a collective investment
scheme or a mutual fund where the investible funds are invested by way of equity shares in companies,
to the extent of more than seventy per cent of the investment.
Page 100
Tax on Dividends
Section 5, Division III, Part I, Section

150, Division I, PartIII, First
Schedule, second schedule
The advance tax on dividend is 10% & now for Non-Filers, the tax rate would be higher by 5%.
It is further proposed that the dividend received by a person from a stock fund shall be taxed at the rate
of 12.5% for tax year 2015 and onwards, if dividend receipts are less than capital gains & the dividend
received by a company from a collective investment scheme or a mutual fund, other than a stock fund,
shall be taxed at the rate of 25% for tax year 2015 and onwards.
The rate of tax proposed to be deducted by a collective investment scheme or a mutual fund shall be
10% in case of Stock Fund. 10% for individuals, 25% for companies & 10% for AOPs, in case of Money
Market Fund, Income Fund or any other Fund.
Capital Gain on Sale of Securities
Section 37A, Division VII, Part 1, First

Schedule
Currently the securities those are held for a period more than a year are exempt from capital gain tax.
Now the finance bill proposes to enhance this period upto twenty four months.
Further, currently the rate for payment of Capital gain Tax shall stand increased from 10% to 17.5%
w.e.f. 1st July 2014 in case of securities held for a period less than six months. Through the finance bill,
rate of CGT @ 12.5% for securities held up to 12 months and 10% for securities held for a period which
is less than 24 months but more than 12 months for the tax year 2015.
Taxation of AOP in which Company is a Member
Section 88A, 92
When the companies create joint ventures with an Association of Persons (AOP). The share profits of the
companies are added to the companys taxable income, where the companies are allowed the tax credit
u/s 88A of the Ordinance.
Now, Finance bill proposes to exclude the share of such non-resident companies from the total income
of the AOP for the purpose of charging the tax of AOP. The companys share will be accumulated in its
normal income & shall be taxed at the applicable rates to the companies.
Tax Credit for Certain Persons
Section 100C
Currently, the income of the non-profit organizations is exempt under the second schedule to the
Ordinance. Through Finance Bill, a new section 100C is being inserted where such charitable/ non-profit
Page 101

organizations are being excluded from exemption regime & would be eligible for 100% tax credit on
their income subject to compliance to provisions of the Ordinance. Certain provisions for community
service organizations (CSO) provided in the second schedule have been incorporated in this section.
This amendment is aimed to make the NGO sector tax compliant, specially the withholding tax
compliances to ensure the tax revenues & to improve the documentation of the economy.
Minimum Tax on Income of Certain Persons
Section 113,
Division IX,
Part 1 , First
Schedule
Section 113 of the Ordinance deals with the chargeability of minimum tax @1 % of the turnover;
however, in the second schedule there are provided certain rate concessions in the minimum tax to
distributors/dealers to some of the certain sectors & others as well.
Now, through the Finance bill, it is proposed to insert a rate schedule in Division IX of Part 1 of First
Schedule & bring all the rates of minimum tax in a single table which will result in deletion of all the
relevant clauses from Part III of second schedule. The rates of minimum tax ranges from 0.2% to 1%.
Alternate Corporate Tax
Section 113C
Finance bill proposes a new concept of Alternate Corporate Tax (ACT) by insertion of section 113C in the
Ordinance. For the tax year 2014 and onward, tax payable by a company shall be higher of the
Corporate Tax or ACT. This is being proposed to discourage the perpetual declaration of losses or very
low income using tax avoidance means e.g. depreciation, initial allowance etc. by companies. The basic
concepts of ACT will be as follows:
The rate of ACT is proposed @ 17% on accounting income excluding exempt income, income
from capital gain on sale of securities (section 37A), income as final tax as importer (section
148(7)), dividend income (section 150), tax deduction as supplier or contractor (section 153(3)),
income from exports (section 154(4)), income from prizes & winnings (section 156) &
commission income (section 233) and income subject to tax credit u/s 65D & 65E.
For determining the Accounting Income expenses shall be apportioned between the amount
to be excluded from accounting income as above & the remaining amount shall be treated as
taxable income.
Corporate tax means total tax payable by the company including on account of minimum tax
and final tax payable under any provisions of the Ordinance, excluding any penalty or default
surcharge to be paid.
Page 102
In order to facilitate companies that have genuinely low income for some period of time, the
ACT paid has been proposed to be carried forward maximum up to 10 years.
The provisions of this section shall not apply to the taxpayers who are chargeable to tax in
accordance with the provisions of fourth (insurance companies), fifth (companies engaged in
exploration and production of petroleum) & seventh (banking companies) schedules.
Return of Income
Section 114 (1)(ix)
As per an amendment brought through the Finance Act, 2013, any person who is a member of a
professional body or any trade association/Chamber of Commerce or Industry is also required to file
return of income.
Now, Finance bill proposes to exclude the non-residents who are the members of those
associations/trade bodies & not have any source of income in Pakistan to remove the hardships to those
members of associations and to remove the anomaly with other provisions of the Ordinance.
Accordingly, an amendment has been proposed to be made in the relevant section to exclude such
persons from such mandatory requirement of filing of return.
Appointment of the Appellate Tribunal
Section 130
Through Finance Act, 2013 the Practicing Chartered Accountants having minimum 10 years experience
as practicing accountant were made eligible to be appointed as accountant member of Appellate
Tribunal Inland Revenue.
Since then it was the demand of the members of the Institute of Cost & Management Accountants of
Pakistan (ICMAP) that the members of the institute who have the same level of experience should also
be made eligible to be appointed as the accountant member of the Tribunal as they are being treated
equally in other provisions of the taxation laws.
Now, through this Finance bill the Practicing Cost & Management Accountants having minimum 10
years experience as practicing accountant are being made eligible to be appointed as accountant
member of Appellate Tribunal Inland Revenue.
Imports (Ship-breakers)
Section 148 (8A), Part II, First

Schedule
Finance bill proposes that the tax collected @ 4.5% at the time of import of ships by the ship-breakers as
final tax by inserting a new sub-clause 8(A) in section 148 of the Ordinance.
Further, amendment is also proposed that some clauses e.g. 9B, 9C, 13E, 23 from the part II of second
schedule be deleted & make it as the part of Part II of the First Schedule. This table proposes that the tax
Page 103

may be collected ranges from 1% to 6% at the import stage under section 148 of the Ordinance. The rate
for the industrial undertaking is also proposed to be increased from 5% to 5.5%. This proposal to bring
all the import rates in as single table is a good step for the easy understanding of the statue.
Salary/Directorship fee
Section 149 (3), Division 1, Part 1,

First Schedule
Finance bill proposes to insert a new sub-section in section 149 of the Ordinance, adjustable withholding
of tax @ 20% of the gross amount payable as directorship fee or fee for attending board meeting or
such fee by whatever name called.
At present, tax liability of person aged 60 years or more is reduced by 50% if the taxable income is up to
01 million, other than income on which the deduction of tax is final. The same relief has been proposed
to be extended to persons who hold a Computerized National Identity Card for disabled persons issued
by the National Database Registration Authority Registration Authority.
Previously such exemptions were available in second schedule. Now, it is proposed to make these
exemptions as part of the First Schedule.
Profit on Debt
Section 151, Division 1A, Part III,

First Schedule
Currently, the applicable withholding tax rate on yield or profit is 10% for all the recipients.
Now, the Finance bill proposes that tax to be deducted under section 151 on the yield or profit paid to
the non-filers, other than companies @15%, which will be final upto 10% & the remaining shall be
advance adjustable tax against liability, if the yield or profit exceeds Rs. 500,000/-, otherwise the rate
shall be the same as 10%.
Payments for Goods, Services and Contracts
Section 153, Division III, Division IV,

Part-III, First Schedule
As the major portion of the FBRs collection is through the withholding tax regime. Therefore, FBR has
been increasing the withholding tax rates since the last Finance Act, 2013. Further last year the
withholding tax on supplies, services & contracts was also enhanced for the non-corporate tax payers to
promote the corporate culture & documentation of the economy.
Now, the Finance bill is again proposing amendments in section 153 & in the related schedule,
subsequent to which the tax rates on the supplies, services & contracts shall be increased again from the
existing rates as provided in table the First Schedule. Further, in order to streamline the taxation of
sportsmen on contract, which had been subject of litigation; it is proposed to define it as contractual
income, subject to 10% withholding which shall be final tax liability.
Page 104

The major increase in withholding rates is for the service which is proposed to be increased from
existing 6% to 8% for the corporate & 7% to 10% for the non-corporate taxpayers. Government stance
for such high increase in rate is that the persons providing or rendering services usually enjoy high profit
margins due to low costs, and that the share of services sector in revenue is much lower than its share in
GDP, the existing rates appear to be on lower side as compared to companies, salaried individuals and
persons having business. Hence to rationalize, tax rates on services has been proposed to be increased
to 8% in case of corporate taxpayers and 10% in other cases. This stance does not look rational as the
service providers have to bear huge cost/expenses in shape of professional manpower for providing
their services to their clients, further their incomes are much lower than the other taxpayers.
Therefore, their share is low in GDP.
Further, it is also proposed that the tax every exporter or an export house making payment in full or part
including advance to a resident person or permanent establishment in Pakistan of a non-resident person
for rendering of or providing of services of stiching, dying,printing,embroidery,washing,seizing &
weaving, shall deduct tax at the time of making the payment @ 1% instead of 0.5%.
Petroleum Products
Section 156A
Finance bill proposes to increase the tax deduction rate from 10% to 12% on the commission or discount
allowed to the petrol pump operator by the person selling petroleum products.
Compulsory Registration in Certain Cases
Section 181AA
This is a one of the good proposal for broadining the tax base. Finance bill proposes that the applicant
must be registered for tax under section 181 of the Ordinance for obtaining commercial or industrial
connection of electricity or natural gas.
Cash withdrawal from a Bank
Section 231A, Division VI, Part VI,

First Schedule
Finance bill proposes to enhance the tax collected at source on the cash withdrawal exceedes fifty
thousand rupees a day from 0.3% to 0.5% for the Non-Filers.
Advance Tax on Private Motor Vehicles
Section 231B, Division VII, Part IV,

First Schedule
Currently, advance income tax is collected at the time of registration of new locally manufactured
private motor vehicles by Excise and Taxation Departments. No such tax is collected on registration of
imported vehicles or transfer of registration or ownership of a private motor vehicle.
Page 105

Finance Bill proposes to collect the advance tax at the same rate at the time of registration of imported
vehicles also. Further, tax at the same rate shall also be collected by the manufacturers of motor
vehicles for early collection of taxes. However, if the person applying for registering of a motor vehicle
for the first time is the same who purchased the car locally or imported it, and paid tax at that stage,
then the Excise and Taxation Departments will not collect the advance tax at the time of registration.
Otherwise advance tax at the time of registration will be collected subject to exemption to some specific
persons. The tax collected under this section shall be adjustable.
In addition, currently the highest rate of tax is for vehicles above 2000CC. It has also been proposed that
higher slabs may be added for vehicle from 2001cc to 2500cc and 2501cc to 3000cc and above 3000cc
with higher rates of tax as provided in the First Schedule. Further, the rates for the non-compliant
persons (non-filers) shall be high that for the complaint taxpayer (filers), in most of the cases, shall be
double.
Brokerage and Commission
Section 233, Division II, Part IV, First

Schedule
Current rate of collection of advance tax on brokerage & commission is 10%, which is proposed to
increase to 12%. Further, the advertising commission was subject to withholding at reduced rate of 5%
as per clause 26 of the Part II of the second schedule. Now, it is proposed to increase it to 7.5%. Further,
it is also proposed to make it part of the Division II of the Part IV of the First Schedule by deleting the
relevant clause from the Part II of the second schedule.
Tax on Motor Vehicles
Section 234, Division II, Part IV, First

Schedule
Currently, tax is being collected from minimum of Rs. 750 to maximum of Rs. 8,000 by the person
collecting motor vehicle tax. Now Finance bill proposes to increase this amount from minimum of Rs.
1,000 to maximum of Rs. 12,000 for the Filers & double ranges from Rs. 1,000 to Rs. 24,000 for NonFilers. Similarly, if the tax is paid in lump sum, the rate table is being changed accordingly.
Domestic Electricity Consumption
Section 235A, Division XIX, Part IV,

First Schedule
In order to broaden the tax base, documentation of high expenditures and to encourage filing of
returns, collection of advance income tax from high end consumers of domestic electricity at the rate of
7.5% on monthly bill amount of more than Rs.100,000 has been proposed in the Finance bill. The tax
collected under this section shall be adjustable.
Tax on Steel Melters, Re-rollers etc.
Section 235B
The Finance bill proposes to insert a new section in the Ordinance which shall be applicable to steel
melters, re-rollers etc. which shall be as follows:
Page 106

(1) There shall be collected tax from every steel melter, steel re-roller, composite steel units,
registered for the purpose of Chapter XI of Sales Tax Special Procedure Rules, 2007 at the rate
of one rupee per unit of electricity consumed for the production of steel billets , ingots and mild
steel (MS products) excluding stainless steel .
(2) The person preparing electricity consumption bill shall charge and collect the tax under subsection (1) in the manner electricity consumption charges are charged and collected.
(3) Tax collected under sub-section (1) shall be non- adjustable and credit of the same shall not be
allowed to any person.
The tax to be deducted against supplies under section 153 (1) (a) of the Ordinance from the
steel melters would not be deducted
Telephone Users/Mobile/Prepaid Telephone
Section 236, Division V, Part IV, First

Schedule
The rate of advance tax was increased from 10% to 15% through the Finance Act, 2013 in the case of
subscriber of mobiles, which is now proposed to reduce to 14%.
Advance Tax on Purchase of Air Ticket
Section 236B
Currently, travel agents are withholding agents for the advance income tax collected @ 5% of
the gross amount of domestic air tickets. In order to facilitate enforcement and prevent loss of
revenue it has been proposed that airlines be made withholding agents under this section.
Now, after this amendment, the airlines issuing the domestic air tickets shall be responsible to
collect tax under this section.
Advance Tax on Sale or Transfer of Immovable Property Section 236C, Division X, Part IV,
First Schedule
Finance bill proposes to enhance the tax rate upto 1% for Non-Filers, to be collected by the
person responsible for registering or attesting transfer of any immovable property, to be collected at
the time registering or attesting the transfer. This tax is being collected from the seller or transferor of
any immovable property at the rate of 5% which will remain the same for the Filers
Advance Tax on Functions & Gatherings
Section 236D, Division XI, Part IV,

First Schedule
Through Finance Act, 2013 an advance adjustable tax was imposed at the rate of 10% on the total
amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel,
restaurant, commercial lawn, a community place or any other place used for such purpose.
Page 107

Now, it is proposed to reduce the advance tax rate from 10% to 5% on such functions & gatherings.
Advance Tax on Purchase or Transfer of Immovable

Property
Section 236K, Division XVIII, Part IV,

First Schedule
Finance Bill proposes to impose a new adjustable tax on the purchaser or transferee @ 1% where the
value of the immovable property is more than Rs. 3 million, in case of Filer of tax rerun. In case of NonFiler, the rate shall be 2% of the immovable property.
This tax is to be collected by any person responsible for registering or attesting transfer of any
immovable property, to be collected at the time registering or attesting the transfer.
The advance tax under this section shall not be collected in the case of the Federal Government, a
Provincial Government, a Local Government or a foreign diplomatic mission in Pakistan.
Further, this section shall also not apply to a scheme introduced by the Federal Government, or
Provincial Government or an Authority established under a Federal or Provincial law for expatriate
Pakistanis.
This a another new tax in the property sector, earlier through Finance Act, 2012 advance tax @0.5% was
made applicable to the seller or transferor. However, this is another step of the Government to
document the economy & broaden the tax base and at the same time to increase the number of
compliant taxpayers.
Advance Tax on Purchase of International Air Ticket
Section 236L, Division XX, Part IV,

First Schedule
This is another step of the Government to increase the compliance level in the country. Finance bill
proposes an adjustable tax @ 3% to the Filers & @6% in the case of Non-Filers of the gross amount of
international air ticket. This advance tax shall be collected by the airlines, operating in Pakistan
This advance tax shall not be collected in case of the ticket of economy class.
Page 108
AMENDMENTS IN THE SCHEDULES TO THE INCOME TAX ORDINANCE, 2001

Following are significant amendments proposed in the schedules of the Income Tax Ordinance, 2001.
INCOME TAX RATES
First Schedule
EXEMPTIONS AND TAX CONCESSIONS
Second Schedule
Amended Rate schedule is given in the succeeding pages;
Exemption from total income- PART I - Second Schedule

The finance bill proposes to withdraw/amend the exemptions/concessions.
Exemption of compensatory allowance available to citizen of Pakistan locally recruited in Pakistan
Mission is proposed to be withdrawn by omitting clause 35 of Part 1.
Clause 58, 58A, 59, and 60 are proposed to be omitted from Part 1 & to be inserted as section 100C
in the Ordinance.
Exemption available to Hamdard Laboratories (Waqf) Pakistan is proposed to be withdrawn as it is
running on commercial basis.
Exemption available on encashment of Special US Dollar Bond issued under the Special US Dollar
Bonds Rules, 1998 is proposed to be exempt by omitting the clause 135 from part 1.
Following Exemptions/concessions are being proposed through Finance Bill 2013

Income of Sindh Province Fund established under the Sindh Province Pension Fund Ordinance, 2002
is proposed to be exempted by inserting clause 57 in part 1 of the second schedule.
Any income derived by M/s Greenstar Social Marketing Pakistan (Guarantee) Limited is proposed to
be exempted by inserting a clause XXX in section 66 of the Part 1 of the second schedule.
Through Finance Act, 2013, it was amended that the income of a university or other educational
institution being run by a non-profit organization shall be exempt from tax. Now, an anomaly in the
Law is proposed to be removed by substituting a clause 126 in Part 1 of the second schedule that
any income derived by a public sector university shall be exempted & the condition of being run
by a non-profit organization shall not be for such universities.
Income derived by M/s China Overseas Ports Holding Company Limited from Gwadar Port
operations is proposed to be exempt for a period of twenty years, with effect from the sixth day of
February, 2007 by substituting a clause 126A in Part 1.
Profits and gains derived by a taxpayer, from a fruit processing or preservation unit set up in
Balochistan Province, Malakand Division, Gilgit-Baltistan and FATA between the first day of July,
Page 109

2014 to the thirtieth day of June, 2017, both days inclusive, engaged in processing of locally grown
fruits, for a period of five years beginning with the month in which the industrial undertaking is
setup or commercial production is commenced, whichever is later; is proposed to be exempted by
insertion a new clause as 126H in Part 1.
Profits and gains derived by a taxpayer from a coal mining project in Sindh, supplying coal
exclusively to power generation projects is proposed to be exempted by insertion of a clause 132B
in Part 1 of the second schedule.
PART II-Second Schedule
Reduction in Tax Rates
The finance bill proposes to amend/withdraw the following from part II.
Clauses (9B), (9C), (13E), 23,24 related to reduce rates under section 148 of the Ordinance. Now, it is
proposed to omit these clauses from Part II & made all these clauses as part of the Part II of the First
Schedule for better understanding of the readers.
Reduced tax deduction under section 153 at the rate of 1% on the sale value of rice to be sold by
Rice Exporters Association of Pakistan (REAP) to Utility Store Corporation, in accordance with the
provisions of the agreement, signed with Ministry of Food, Agriculture and Livestock (MINFAL) on
May 5, 2008 is proposed to be withdrawn by omitting the clause 13HH.
To attract foreign investment, It is proposed through insertion of clause 18A in Part II of the second
schedule that if 50% of the cost of a project including working capital is through own equity foreign
direct investment, tax rate be reduced to 20% for the first five years, from the date of setting up or
commencement of commercial production, whichever is later. To qualify for this scheme, it has
been proposed that the company must invest in a new industrial undertaking to be set up by
30.06.2017.
PART III Second Schedule
Reduction in Tax Liability
The finance bill proposes to amend/withdraw the following in Part III.

Finance Bill proposes to withdraw reduce tax rate of 2.5% on certain allowances given to pilots that
was liable to tax as a separate block of income as provided in clause 1 of Part III.
Finance Bill proposes to omit clause IA and consolidate the relief by proposed insertion of clause (IB)
in Division I of Part I of the First Schedule inserted.
Finance Bill proposes to add a new Clause (1AA) which proposes that pilots of any Pakistani airlines
receive total allowances shall be taxed @ 7.5%. Provided that reduction under this clause shall be
available to so much of the allowances as exceeds an amount equal to basic pay.
Clauses 7, 8, 9 & 10, 12, 13, 14 & 15 relates to the reduction in minimum tax liability to the
taxpayers of different sectors. Now, Finance Bill proposes to make the rates of minimum tax as part
of the new Division IX of Part 1 of First Schedule by omitting all these clauses form Part III of the
second schedule. This change will provide ease to the taxpayers in understanding the provisions of
minimum tax as provided in section 113 of the Ordinance.
Page 110
PART IV Second Schedule
Exemption from Specific Provisions
The finance bill proposes to amend/exempt/withdraw the following in Part IV.

Finance Bill proposes to add Clause (9A) which provides exemption from Clause (a) of sub-section (1)
of section 153 to steel melters, steel re-rollers, composite steel units, as a payer in respect of
purchase of scrap, provided that tax is collected in accordance with the section.
Finance Bill proposes to add clause (9AA) which shall also provide exemption from clause (a) of subsection (1) of section 153 to ship breakers, as recipient of payment, provided that this clause shall
only apply for ships imported after 1st July, 2014.
Finance Bill proposes the omission of clause 10 which is result render the contents of section 111
applicable in respect of any amount invested in the purchase of Special US Dollar Bonds.
Finance Bill proposes to insert in sub-clause (v) in clause (11A) which provides non applicability of
section 113 as minimum tax to companies engaged in coal mining projects in the Province of Sindh.
The exemption from total income in clause 1 has also been proposed by inserting clause 132B in
Part I of First Schedule.
Finance Bill proposes to omit the clauses (41A), (41AA), (41AAA) to withdraw the Option to
commercial importer, exporter & suppliers to opt out of Final Tax Regime (FTR) at certain
conditions.
To omit the clause 41B as payment to foreign news agency, syndicate services and non-resident
contributors which relate to non-applicability withholding tax provisions contained under section
152(2) with respect to non-residents who have no permanent establishment in Pakistan.
The following provisions are proposed to be inserted, to opt out of the FTR to different classes of
taxpayers and to file normal return of income alongwith accounts and documents as may be
prescribed subject to the following conditions.
Clause 56B provides option to commercial importers subject to the condition that the
minimum tax liability under normal tax regime shall not less than 5.5% of the imports, if the
taxpayer is a company and 6% in any other case.
Clause 56C, provides option to suppliers subject to the condition that the minimum tax
liability under normal tax regime shall not less than 3.5% of the gross amount of sale, if the
taxpayer is a company and 4% in any other case.
Clause 56D, provides option to contractors subject to the condition that the minimum tax
liability under normal tax regime shall not less than 6% of contract receipts if taxpayer is a
company and 6.5% in any other case.
Clause 56E, provide option to service providers subject to the condition that the minimum
tax liability under normal tax regime shall not less than 0.5% of the gross amount of services
received.
Page 111
Clause 56F, provides option to petrol pump operators subject to the condition that the
minimum tax liability under normal tax regime shall not less than 10% of the commission or
discount received
Clause 56G provides option to brokerage & commission agent subject to the condition that
the minimum tax liability under normal tax regime shall not less than 10% of the
commission.
Clause 57 provides the exemption of withholding tax to companies operating Trading Houses. An
new explanation of the above clause proposes to be added that exemption from withholding tax
provision under section 153 only be available as a recipient and not as a withholding agent.
INITIAL ALLOWNACE
PART II, THIRD SCHEDULE
Reduction in rate of initial tax depreciation is proposed to reduce from 25% to 10% on buildings.
RULES FOR BANKING COMPANIES
SEVENTH SCHEDULE
The Finance Bill proposes to tax dividend income on net income basis at the rate of 12.5% instead of
present rate of tax @ 10% on gross amount of dividend. Besides enhancement of 2.5% in tax rate, the
formula proposed to arrive at the net income is by restricting the total amount of expenditure
proportionate to the dividend income in relation to total receipts including dividend. On similar basis
capital gain tax is also proposed to be tax on net income similar to the proposed basis for dividend
income.
Page 112
INCOME TAX RATES

ST
FROM THE 1 SCHEDULE (POST FINANCE BILL, 2014)

Italic font shows where rates has been changed/substituted/inserted through Finance Bill 2014
Rates of tax for Individuals and Association of
(1.)
Sr. No.
Taxable income
1
2
3
4
5
6
7
Where the taxable income does not exceed Rs. 400,000

Where the taxable income exceeds Rs. 400,000 but does
not exceed Rs. 750,000
Where the taxable income exceeds Rs. 750,000 but does
not exceed Rs. 1,500,000
Where the taxable income exceeds Rs. 1,500,000 but does
Where the taxable income exceeds Rs. 6,000,000
st
1 Schedule Part 1, Division I

Tax Rate
0%
10% of the amount exceeding Rs.
400,000
Rs. 35,000 + 15% of the amount
exceeding Rs. 750,000
exceeding Rs. 1,500,000
Rs. 1,322,500 + 35% of the amount
st
*Tax Rates for Salaried Individuals

1 Schedule Part I Division 1
(1A):where the income of an individual chargeable under the head salary exceeds 50% of his taxable income, the
rate of tax to be applied set out in the following table;
Sr. No.
Taxable Income
up to Rs.400,000
Rate of Tax
0%
Rs.400,001 to Rs.750,000
5% of the amount exceeding Rs. 400,000
Rs.750,001 to Rs.1,400,000
Rs. 17,500 + 10% of the amount exceeding Rs. 750,000
Rs.1,400,001 to Rs.1,500,000
Rs. 82,500 + 12.5% of the amount exceeding Rs. 1,400,000
Rs.1,500,001 to Rs.1,800,000
Rs. 95,000 + 15% of the amount exceeding Rs. 1,500,000
Rs.1,800,001 to Rs.2,500,000
Rs.2,500,001 to Rs.3,000,000
Rs.3,000,001 to Rs.3,500,000
Rs.3,500,001 to Rs.4,000,000
10
Rs.4,000,001 to Rs.7,000,000
11
Rs.7,000,001 and more
Rs. 1,425,000 + 30% of the amount exceeding Rs. 7,000,000
(IB) Where the taxable income in a tax year, other than income on which the deduction of tax is final, does not
exceed one million rupees of a person(i) holding a National Database Registration Authoritys Computerized National Identity Card for disabled
persons; or
(ii) a taxpayer of the age of not less than sixty years on the first day of that tax year,
The tax liability on such income shall be reduced by 50%.
Page 113

Rates of Tax for Companies
Part 1, Division II
Companies other than banking

companies from the tax year
2014
Banking Companies
Small Company
34%
In the Budget Highlights the rate proposed to be reduced
by 1% for tax year 2015 but in the rate Schedule same is
missing
35%
25%
Rates of Dividend Tax

Part 1, Division III (Section 5)
10% of the gross amount of dividend.
7.5% for power projects of WAPDA & power generation project.
12.5 on Dividends received from Stock Funds if dividend receipts are less than capital gain.
25% Dividend Received by a Company from collective investment Scheme or a mutual fund, other than a
stock fund from TY2015 onwards.
Withholding tax rates on Certain Payments to Non-Residents
Section 152: Part 1, Division IV (Section 6)
15% of the gross amount of the royalty or fee for technical services.
Rates of Tax on Shipping or Air Transport Income of a Non-Resident Person
In case of Shipping Income, 8% of the gross amount received or receivable.
In case of air transport income, 3% of the gross amount received or receivable.
Capital Gains on Sale of Securities
The rate of tax to be paid under section 37A shall be as follows:
S. No.
Period
Tax Year
(1)
1
(2)
Where holding period of a security is less
than six months.
Where holding period of a security is more

than six months but less than twelve months.
Where holding period of a security is twelve

months or more but less than twenty-four
months.
Where holding period of a security is twentyfour months or more.
Part 1, Division V (Section 7)
Part 1, Division VII (Section 37A)

Current
Rates
(3)
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
2016
2015
10.0%
10.0%
10.0%
10.0%
17.5%
7.50%.
8.00%.
8.00%
8.00%
9.50%
10.00%
0%
2015
0%
Proposed
Rates
(4)
10%
10%
10%
10%
12.5%
7.50%
8%
8%
8%
12.50%
10%
0%
Page 114
Capital Gains on disposal of immovable property
Part-1, Division VIII, Section 37(1A)
The rate of tax to be paid under section 37(1A) shall be as follows:

S.No.
1.
2.
3.
Period
Where holding period of immovable property is up to one year
Where holding period of immovable property is more than one year but not
more than two years
Where holding period of immovable property is more than two years.
Rate of tax
10%
5%
0%
Minimum tax (new insertion in the schedule)

Part-1, Division IX, Section 113
S.
No.
Person(s)
(1)
1
(2)
(a) Oil marketing companies, Oil refineries, Sui Southern Gas Company Limited
and Sui Northern Gas Pipelines Limited (for the cases where annual turnover
exceeds rupees one billion.);
(b) Pakistan International Airlines Corporation; and
( c) Poultry industry including poultry breeding, broiler production, egg
production and poultry feed production.
(a) Distributors of pharmaceutical products, fertilizers and cigarettes;
(b) Petroleum agents and distributors who are registered under the Sales Tax
Act, 1990;
( C) Rice mills and dealers; and
(d) Flour mills.
Motorcycle dealers registered under the Sales Tax Act, 1990.
In all other cases.
3
4
Minimum Tax as
percentage of the
person's turnover for
the year
(3)
0.5%
0.2%
0.25%
1%
Page 115

* Advance tax on Imports
Part II, (Section 148), (Division II of Part V of Chapter X)
S. No.
Person(s)
(1)
(2)
Current Rates
Proposed Rate
(3)
(i) Industrial undertaking importing remeltable steel (PCT Heading 72.04)

and directly reduced iron for its own use;
1%(9B PartII of 2nd sch)
(ii) Persons importing potassic fertilizers in pursuance of Economic

Coordination Committee of the cabinet's decision No. ECC-155/12/2004
dated the 9th December, 2004;
(iii) Persons importing urea; and
1% (13E PartII of second

Sch)
(iv) Manufacturers covered under Notification No. S.R.O 1125(I)/2011

dated the 31st December, 2011.
Persons importing pulses
1% (45A of PartIV of 2
Sch)
1% (24 PartII of 2nd Sch)
Commercial importers covered under Notification No. S.R.O. 1125(I)/2011

dated the 31st December, 2011.
1% (9C PartII of 2nd Sch)
Ship breakers on import of ships
Industrial undertakings not covered under S. Nos. 1 to 4
5%
5.50%
Companies not covered under S. Nos. 1 to 5
5%
5.50%
Persons not covered under S. Nos. 1 to 6
5.5
6%
1% (23 PartII of 2nd Sch)

nd
Advance Tax on dividend (New Insertion)

S. No.
1
1% of import value as
increased by customsduty, sales tax and
federal excise duty
federal excise duty
federal excise duty
4.50%
Part III, Division I (Section 150)
Person(s)
In the case of dividends declared or distributed by purchaser
of a power project privatized by WAPDA or on shares of a
company set up for power generation or on shares of a
company, supplying coal exclusively to power generation
projects;
Current Rates
Proposed Rate
7.50%
Filers other than mentioned in (a) above;
10%
Non-filers other than mentioned in (a) above:
15%
Rate of Tax on Collective Investment Scheme or a Mutual Fund

Stock Fund
Money market Fund,

Income Fund or any
other fund
10%
Individual
10%
Company
10%
25%
AOP
10%
10%
Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be
12.5%
Tax deduction from Profit on Debt
Part III, Division IA (Section 151)
S. No.
Person(s)
Current Rate
Proposed Rate
1
Filers
10%
10%
2
Non-filers
10%
15%
*. Provided that for a non-filer, if the yield or profit paid is rupees five hundred thousand or less, the rate shall be
10%.
Page 116
Tax deduction on payments to non-residents
Part III, Division II (Section 152)
Fom payments on execution of construction contract including supervisory activities &

related services.
In other cases.
The rate of tax to be deducted under sub-section (1AA) of the section 152.
The rate of tax to be deducted under sub-section (1AAA) of the section 152.
The rate of tax to be deducted from a payment referred to in clause (a) of sub-section (2A)
of the section152.
The rate of tax to be deducted from a payment referred to in clause (b) of sub-section (2A)
of section 152 shall be
i. In case of transport services
The rate of tax to be deducted from a payment referred to in clause (c) of the sub-section
(2A) of section 152
*Tax deduction at source tax on payments for goods and services
1
2
3
4
5
6
7
8
9
Current WHT Rates
Taxable income
In case of sale of rice, cotton seed
or edible oil
In case of sale of goods on amount
by payable to companies.
In case of sale of goods -on
payments to other taxpayers i.e
other than companies
In the case of transport services
In case of other services on amount
payable to Companies
In case of other services on
payments to other tax payers i.e
other than companies
In case of contracts on payments to
companies
other tax payers i.e other than
companies
sportspersons
20%
5%
10%
3.5%
2%
6%
ii. In any other case
Sr.
No.
6%
6%
Part III, Division III (Section 153)

Proposed WHTax Rate
1.5% of the gross amount

payable
payable

payable.
4%. of the gross amount
payable
4% of the gross amount

payable

payable.

payable
payable
2% of the
payable.
8% of the
payable

payable

payable

payable
7% of the
payable

payable

payable
gross
amount
gross
amount
gross
amount

payable
Page 117

Deduction of tax on Exports
Part III, Division IV (Section 154)
1% of the proceeds of the export.
5% in case of indenting commission as per provisions of subsection 2 of section 154.
1% in case of services of stitching, dying, printing, embroidery, washing, sizing and weaving provided as per
provisions of subsection 2 of section 153. Currently the rate is 0.5%.
WHT on Income From Property
(a)
(b)
Part III, Division V (Section 155)
The rate of tax to be deducted under section 155, in the case of (payments to) individual and
association of persons, shall beS.No. Gross Amount of Rent
Rate of Tax
(1)
Where the gross amount of rent does not exceed Nil.
Rs.150,000.
(2)
Where the gross amount of rent exceeds 10% of the gross amount exceeding
Rs.150,000 but does not exceed Rs.1,000,000.
Rs.150,000.
(3)
Where the gross amount of rent exceeds Rs. Rs.85,000 plus 15 per cent of the gross
1,000,000
amount exceeding Rs.1,000,000
The rate of tax to be deducted under section 155, in the case of (payment to) company, shall be 15%
of the gross amount of rent.
Withholding tax on Prizes and Winnings
Part III, Division VI (Section 156)
On a prize on prize bond or cross-word puzzle

On winnings from a raffle, lottery, prize on winning a quiz,
prizes offered by a company for promotion of sale
15% of the gross amount paid

20% of the gross amount paid
Withholding Tax on Petroleum Products

12% of the amount of payment to be increased from existing 10%
Part III, Division VIA (Section 156A)
Collection of tax from CNG Stations

Part III, Division VIB (Section 234A)
The rate of tax to be collected under section 234A shall be 4% of the gas consumption charges of CNG
station.
Withholding tax on Brokerage and Commission
Part IV, Division II (Section 233)
S. No.
1
2
Person(s)
Advertising Agents
In all other cases
Current Rates
nd
5% (26 PartII of 2 Sch)
10%
Rate for Collection of Tax by a Stock Exchange Registered in Pakistan

0.01% of the share purchase value
Proposed Rate
7.5%
12%
Part IV, Division IIA (Section 233A)
Rate for Collection of Tax by NCCPL

Part IV, Division II B (Section 233AA)
10% of profit or mark-up or interest earned by the member, margin financier or securities lender.
Other Private Motor Cars
S. No.
Part IV, Division III Clause 3

Engine Capacity
Existing
Rates
Proposed For
filers
Proposed For
non-filers
Page 118

(Rs.)
(1)
(2)
1
upto 1000cc
2
1001cc to 1199cc
3
1200cc to 1299cc
4
1300cc to 1499cc
5
1500cc to 1599cc
6
*1600cc to 1999cc
7
2000cc & above
*in the finance bill mentioned 1500CC, probably a typo error
(3)
Rs. 1,000
Rs. 1,800
Rs. 2,000
Rs. 3,000
Rs. 4,500
Rs. 6,000
Rs. 12,000
750
1250
1750
3000
4000
8000
Motor Vehicle tax is collected in lump sum

S. No.
(1)
1
2
3
4
5
6
7
Engine Capacity
Part IV, Division III Clause 4

Existing
Rates
(2)
7,500
12,500
17,500
upto 1000cc
1001cc to 1199cc
1200cc to 1299cc
1300cc to 1499cc
1500cc to 1599cc
1600cc to 1999cc
2000cc & above
(4)
Rs. 1,000
Rs. 3,600
Rs. 4,000
Rs. 6,000
Rs. 9,000
Rs. 12,000
Rs. 24,000
30,000
40,000
80,000
Proposed For
filers
(3)
Rs. 10,000
Rs. 18,000
Rs. 20,000
Rs. 30,000
Rs. 45,000
Rs. 60,000
Rs. 120,000
Proposed For
non-filers
(4)
Rs. 10,000
Rs. 36,000
Rs. 40,000
Rs. 60,000
Rs. 90,000
Rs. 120,000
Rs. 240,000
Electricity Consumption
Part IV, Division IV (Section 235)
Rate of collection of tax under section 235 are slabs rates from Rs.80 to Rs.1500 upto the bill amount less
than 20,000.
Where the amount of electricity bill exceeds Rs. 20,000: 5% for industrial consumers and 10% for
commercial consumers
*Advance tax from Telephone Users
Part IV Division V (Section 236)
(a)
in the case of a telephone subscriber (other than

mobile phone subscriber) where the amount of
monthly bill exceeds Rs.1000.
10% of the exceeding amount of bill
(b)
in the case of subscriber of mobile

telephone and pre-paid telephone card
14% of the amount of bill or sales price of pre-paid

4
telephone card [or sale of units through any
electronic medium or whatever form (existing
rate is 15%)
Rate of tax on Cash Withdrawal from Bank

Part IV Division VI (Section 231A)
0.3% of the aggregate amount of cash withdrawal for filers and 0.5% of the cash amount withdrawn, for
non-filers from a bank account exceeding Rs.50,000 in a day.
Advance Tax on Transactions in Bank
Part IV Division VIA (Section 231AA)
0.3% of the aggregate amount of cash transaction through bank exceeding Rs.25,000 in a day.
Page 119

Advance Tax on purchase of private motor car and jeep
S.No.
Engine Capacity
(1)
1
2
3
4
5
6
7
8
9
(2)
Current
Rates
10,000
20,000
30,000
50,000
75,000
100,000
Upto 850cc
851cc to 1000cc
1001cc to 1300cc
1301cc to 1600cc
1601cc to 1800cc
1801cc to 2000cc
2001cc to 2500cc
2501cc to 3000cc
Above 3000cc
150,000
Part IV Division VII (Section 231B/(1),(2),(3))

Proposed For filers
(3)
Rs. 10,000
Rs. 20,000
Rs. 30,000
Rs. 50,000
Rs. 75,000
Rs. 100,000
Rs. 150,000
Rs. 200,000
Rs. 250,000
Advance tax at the time of sale by auction

10% of the gross sale price of any property or goods sold by auction
Part IV Division VIII (Section 236A)
Advance tax on Purchase of Air Ticket
Part IV Division IX (Section 236B)
The rate of tax to be deducted under section236B shall be 5% of the gross amount of air ticket.
Advance Tax on Sale or Transfer of Immovable Property
Part IV Division X (Section 236C)
0.5% of the gross amount of the consideration received for filers and 1% of the gross amount of the
consideration received for non-filers.
Advance tax on functions and gatherings
Proposed For
non-filers
(4)
Rs. 10,000
Rs. 25,000
Rs. 40,000
Rs. 100,000
Rs. 150,000
Rs. 200,000
Rs. 300,000
Rs. 400,000
Rs. 450,00
Part IV, Division XI, Section 236 D
5% of the bill amount being reduced from existing 10%.
Advance tax on foreign-produced Films & TV Plays

(a)
(b)
Foreign-produced TV drama serial

Foreign-produced TV play (single
episode)
Advance tax on Cable Operators and other Electronic Media
Part IV, Division XII, Section 236 E

Rs.100,000/-per episode
Rs. 100,000/-
Part IV, Division XIII (Section 236F)
1.
The rate of tax to be collected in case of Cable Television Operator shall be as per following table;
License
Tax
on
License Category as
Category as
Tax
on
Tax
on
License
provided in PEMRA
Tax on Renewal
provided in
Renewal
License Fee
Fee
Rules
PEMRA Rules
Page 120

H
H-1
H-II
R
B
B-1
B-2
B-3
2.
Rs. 7,500
Rs. 10,000
Rs. 25,000
Rs. 5,000
Rs. 5,000
Rs. 30,000
Rs. 40,000
Rs. 50,000
Rs. 10,000
Rs. 15,000
Rs. 30,000
Rs.30,000
Rs. 40,000
Rs. 50,000
Rs. 60,000
Rs. 75,000
B-4
B-5
B-6
B-7
B-8
B-9
B-10
Rs. 75,000
Rs. 87,500
Rs. 175,000
Rs. 262,500
Rs. 437,500
Rs. 700,000
Rs. 875,500
Rs. 100,000
Rs. 150,000
Rs. 200,000
Rs. 300,000
Rs. 500,000
Rs. 800,000
Rs. 900,000
The rate of tax to be collected in case of IPTV , FM Radio, MMDS, Mobile TV, Mobile Audio, Satellite TV
Channel, Landing Rights shall be 20% of the permission fee or renewal fee, as the case may be.
Advance tax on sale to Distributors, Dealers or Wholesalers
Part IV, Division XIV (Section 236G)
0.1% of the gross amount of sales by every manufacturers or commercial importer of the specified
sectors mentioned in section 236G
Advance tax on sale to Retailers

Part IV, Division XV (Section 236H)
0.5% of the gross amount of sales by every manufacturer, distributor, dealer, wholesaler or commercial
importer of the specified sectors mentioned in section 236H
Collection of Advance Tax by Educational Institution,

Part IV, Division XVI (Section 236I)
5% of the amount of Fee/Charges
Advance Tax on Dealers, Commission Agents and Arhatis etc.
Part IV, Division XVII (Section 236J)
The rate of collection of tax will be as follows by every Market Committee
Group
Amount of Tax (per annum)
Group
Amount of Tax (per annum)
Group or Class A:
Rs. 10,000
Group or Class C:
Rs. 5,000
Group or Class B:
Rs. 7,500
Any other category:
Rs. 5,000.
Advance Tax on purchase of immovable property (New Insertion)

(Section 236K) to be collected from purchaser/transferee
Part
IV,
Division
XVIII
S. No.
(1)
1
2
*Period
Rate of Tax
(2)
(3)
Where value of Immovable property is up to 3 million.
0%
Where the value of Immovable property is more than 3 Filer
1%
million
Non-Filer
2%*
**Provided that the rate of tax for Non-Filer shall be 1% upto the date appointed by the Board through notification
in official gazette.
Comments;
*should have been value instead of period
**needs clarification
Page 121

Advance Tax on Domestic electricity Consumption
(Section 235A)
S.
No.
1
2
(New Insertion)
Part
Bill Amount
1
2
Economy
First/Business/Club class
XIX
7.5%
0%
Advance Tax on international air ticket (New Insertion)

XX (Section 236L)
Type of Ticket
(2)
Division
Rate
if the amount of monthly bill is Rs.100,000 or more

0% the amount of monthly bill is less than Rs.100,000.
S. No.
(1)
IV,
Part IV, Division
Rate
(3)
Filer
0%
3%
(4)
Non-Filer
0%
6%
Page 122
OTHER LAWS
1.
Income Tax Support Levy Act 2013
Last year a new tax, income tax support levy @ 0.5% was levied on net movable wealth exceeding
Rs.1million of a tax payer. This levy was chargeable from tax year 2013 and onward. Various quarters
filed writ petitions against the said levy where honorable courts granted stay against payment of levy.
Through Finance Bill the Income Tax Support Levy Act 2013 is being repealed.
2.
Gas Infrastructure Development Cess Act, 2011
Through Gas Infrastructure Development Cess Act 2011, a cess is being collected from certain
consumers other than domestic consumers. Through Bill, The Federal Govt. is being empowered to levy
the said cess on any category of Gas Consumers subject to maximum rate provided in the second
schedule of this act i.e Rs.300/MMBTU. The Cess is being collected by the entities as defined in the First
Schedule to the said Act.
Sui Northern Gas Pipelines Limited
Sui Southern Gas Pipelines Limited
Mari Gas Company Limited
Pakistan Petrolium Mimited and;
Tullow Pakistan Development Limited
Further, the following new entities are added as Cess Collecting Agents alongwith Existing.
Oil and Gas Development Company
Any Other Company engaged in sale of gas to any category of gas consumers as notified in the
official gazette.
The Rate of Cess are being enhanced. Second Schedule being substituted as follows;
Sr.No.
Sector
1.
2.
3.
Fertilizer-Feed Stock
Fertilizer Fuel Stock
Compressed Natural Gas:
Region 1(KPK, Balochistan &Potohar)
Region 2 (Sindh & Punjab exc Potohar)
Industrial
Captive Power
WAPDA/KESC/GENCOs
WAPDA/KESC
Independent Power Plants(IPPs)
Commercial Including Ice Factories
Cement
Liberty Power Plant
Domestic
4.
5.
6.
7.
8.
9.
10.
11.
Rate (Existing)
Rs./MMBTU
197
141
79
13
-
Rate
Proposed
Rs./MMBTU
300
300
300
300
300
300
27
70
-
300
300
300
-
Page 124
Page 125

Budget 2014-15 Comments

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Budget 2014-15 Comments

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FEDERAL BUDGET 2014-15

FINANCE BILL 2014

| 4-C, Sherwani House, Model Town Lahore, Pakistan |

Pakistan Budget 2014-15

Tariq Mian Ramzan Arshad & Co.

Aatif Mehmood, Team Member

Abdul Wahab, Team Member, Tax and Corporate

Cost and Management Accountants

Pakistan Budget 2014-15

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Pakistan Budget 2014-15

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Pakistan Budget 2014-15

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Pakistan Budget 2014-15

Tax Revenue Receipts

Non-Tax Revenue Receipts

Less: Provincial share in federal

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Pakistan Budget 2014-15

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Pakistan Budget 2014-15

Detailed Budget Summary

Note: The difference is due to roundingoff of figures to nearest million rupees.

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Pakistan Budget 2014-15

BREAKUP OF FEDERAL TAX REVENUE RECEIPTS

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Cost and Management Accountants

Cost and Management Accountants

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

SALES TAX AND FEDERAL EXCISE

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Sales Tax Act

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Sales Tax Act

SALES TAX ACT, 1990

Section 3(2)(aa), 8th

Reduced Rate of sales Tax

2. Cool chain machinery and equipment.

Section 3(3B)), 9th

Sales Tax on Mobile Phones

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants

Sales Tax Act

sales Tax on CNG Stations

sales Tax for Retailers

Collection of Excess Tax

Tariq Mian Ramzan Arshad & Co.

Cost and Management Accountants