Sales Tax (Amendment) Ordinance, 2014

President of the Islamic Republic of Pakistan has issued Sales Tax (Amendment) Ordinance, 2014 to make amendments in the Sales Tax Act, 1990. Through this ordinance, following amendments have been made:

1-      Sub-section (8) of Section 3 has been substituted. By virtue of this amendment, gas distribution companies at the time of supply of gas to CNG stations will charge sales tax @17% on the value of supply of CNG to the consumer as fixed by the Board. Previously such supplies were chargeable to additional 9% sales tax besides 17% stanadard rate of sales tax; however, this rate was not linked with consumer price and the tax was being charged and collected on the actual value of supply.

2-      Sub-section (2) of Section 3B (collection of excess tax, etc.) has been substituted. Newly amended section has been given overriding effect on all laws and rules. Furthermore, it has been made applicable on judgments of the superior courts including Superior Courts. Now no refund whatsoever can be claimed against the excess paid / collected amount shall be admissible even in the presence of a valid court order.