Federal Government has issued following notifications:-
1) Vide SRO222(I)/2013 dated 15.03.2013, amendment has been made in notification SRO 575(I)/2006 dated 05.06.2006. As per the amending notification, sales tax and customs duty have been exempted on coal mining machinery, equipment, spares including vehicles for site use i.e single or double cabin pick-ups imported for Thar Coal Field. The exemption 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.
2)Vide SRO 213(I)/2013 dated 15.03.2013, sales tax on supply of cotton seed oil to registered or unregistered persons has been imposed @ 2%.
3)Vide SRO 220(I)/2013 dated 19.03.2013, import and supply of Raw Cotton and Ginned Cotton has been exempted.
4)Certain amendments have been made in SRO 1125(I)/2011 dated 31.12.2011, as amended vide SRO 154(I)/2013 dated 28.02.2013. The amendments have been made vide SRO 221(I)/2013 dated 19.03.2013. The following changes have been made through this notification:-
i)Supplies of goods useable as industrial goods to registered as well as unregistered persons of the five sectors shall be charged to sales tax @ 2%. Previously this facility was available only to registered persons of the five sectors.
ii)Supplies of finished products to retailers, whether registered or unregistered will be subjected to tax @ 2%.
iii)Registered manufacturers who process, goods including fabrics, owned by other persons will be required to pay tax @ 2% of the processing charges alone. The previous explanation in the SRO has been withdrawn.
iv)Registered persons operating under SRO 1125(I)/2011 who consume inputs acquired on payment of sales tax shall be entitled to input tax adjustment. However, refund will be available only to exporters. The local suppliers will be required to take input tax adjustment only.