Why contractors enjoying zero sales tax facility? TI Pakistan asks FBR...

Allowing contractors zero sales tax on local purchase of material amounts to "collusive practice," according to a complaint received by Transparency International Pakistan here.
Adviser, Transparency International Pakistan, Syed Adil Gilani in a letter sent to the Chairman, Federal Board of Revenue (FBR), Salman Siddique on November 20 has drawn his attention to "a very serious complaint" received by Transparency International Pakistan in this regard mentioning that contractors purchasing MS bars, MS sections, cement, cars, GL pipes, and electric cables, etc, have been allowed this facility by FBR under the provisions of section 4 of sales tax act 1990.
Section 4 allows zero rates for supplies against international tenders, for government tenders or even private companies tenders. Transparency International Pakistan's understanding is that sales tax is zero for goods to be supplied outside Pakistan against international tenders. It has requested the Chairman, FBR to confirm the following:
---- What is FBR's definition of "supplies against international tenders?"
---- Does material such as steel bars, steel sections, steel pipes, steel sheets, cement, cars, G I pipes, and electric cables, etc, purchased locally by a foreign/local contractor for execution of a government construction contract for PIA, CDA, NHA, Wapda, EOBI, Pakistan Steel, and CAA, etc, are imposed zero sales tax by the FBR under the provision of section 4 of sales tax act 1990, and
---- Does such material purchased locally by a foreign/local contractor for execution of non-government construction contract for MCB, HBL, EMMAR, Lever Brothers, Bahria Foundation are imposed zero sales tax by FBR under the provision of section 4 of sales tax act 1990.
The relevant provisions of Sales Tax Act 1990 are as under: Zero rating: Notwithstanding the provisions of section 3, the following goods shall be charged to tax at the rate of zero percent (a) goods exported, or the goods specified in the fifth schedule. The fifth schedule: supply against international tenders.
"Transparency International Pakistan is striving for the Rule of Law in Pakistan and an early response is needed so as to proceed further with this complaint," Adil Gilani said. Copies of the letter have been sent to: Chairman, Public Accounts Committee, Chairman, NAB, Federal Tax Ombudsman, Registrar, Supreme Court of Pakistan, and Auditor General of Pakistan.