Saturday, 25 May 2024

Sales tax rates | Third Schedule goods | Eighth Schedule goods | Retail price | Reduced rate of sales tax

Sales tax rates | Third Schedule goods | Eighth Schedule goods | Retail price | Reduced rate of sales tax.

Scope of tax Under Section – 3(1)

Scope of tax Under Section – 3(1) Subject to the provisions of this Act, there shall be charged, levied and paid a tax known as sales tax at the rate of seventeen per cent of the value of–
(a) taxable supplies made by a registered person in the course or furtherance of any taxable activity carried on by him; and
(b) goods imported into Pakistan, [irrespective of their final destination in territories of Pakistan.

Rates of sales tax under Sales Tax Act, 1990

Notwithstanding the provisions of section 3(1) of Sales Tax Act, 1990: –
“According to Section 3(2)(a): taxable supplies [and import of goods] specified in the Third Schedule shall be charged to tax at the rate of [seventeen] per cent of the retail price [or in case such supplies [or imports] are also specified in the Eighth Schedule, at the rates specified therein and the retail price thereof,] along with the amount of sales tax shall be legibly, prominently and indelibly printed or embossed by the manufacturer [, or the importer, in case of imported goods,] on each article, packet, container, package, cover or label.”

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Retail Price Section 2(27) of Sales Tax Act, 1990

Section 2(27) “retail price”, with reference to the Third Schedule, means the price fixed by the manufacturer [or importer, in case of imported goods], inclusive of all [duties], charges and taxes (other than sales tax) at which any particular brand or variety of any article should be sold to the general body of consumers or, if more than one such price is so fixed for the same brand or variety, the highest of such price.
[Provided that the Board may through a general order specify zones or areas for the purpose of determination of highest retail price for any brand or variety of goods.]

Third Schedule Goods for Sales tax Rates Under Sales Tax Act, 1990.

Clause (a) of sub-section (2) of section 3

Following is items / goods of Third Schedule to Sales Tax where consumer goods / items are mentioned for collection of sales tax on the basis of printed / embossed retail price:

1 Fruit juices and vegetable juices
2 Ice Cream.
3 Aerated waters or beverages.
4 Syrups and squashes.
5 Cigarettes.
6 Toilet soap
7 Detergents
8 Shampoo
9 Toothpaste
10 Shaving cream
11 Perfumery and cosmetics
14 Tea
15 Powder drinks
16 Milky drinks
17 Toilet paper and tissue paper
18 Spices sold in retail packing bearing brand names and trade marks
21 Shoe polish and shoe cream 32 Fertilizers
33 Cement sold in retail packing 37 Mineral/bottled water
38 Household electrical goods, including air conditioners, refrigerators, deep freezers, televisions, recorders and players, electric bulbs, tube-lights, electric fans, electric irons, washing machines and telephone sets.
39 Household gas appliances, including cooking range, ovens, geysers and gas heaters.
40 Foam or spring mattresses and other foam products for household use.
41 Paints, distempers, enamels, pigments, colours, varnishes, gums, resins, dyes, glazes, thinners, blacks, cellulose lacquers and polishes sold in retail packing

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42 Lubricating oils, brake fluids, transmission fluid, and other vehicular fluids sold in retail packing.
43 Storage batteries excluding those sold to automotive manufacturers or assemblers
44 Tyres and tubes excluding those sold to automotive manufacturers or assemblers
45. Motorcycles
46. Auto rickshaws
47 Biscuits in retail packing with brand name
48 Tiles
49 Auto-parts, in retail packing, excluding those sold to automotive manufacturers or assemblers.

Eighth Schedule Goods for reduced rate of Sales tax Under Sales Tax Act, 1990.

clause (aa) of sub-section (2) of section 3

A d v e r t i s e m e n t

A d v e r t i s e m e n t

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