SUMMARY OF TAX EXPENDITURE 2021
Tax Expenditure Report 2021 for federal taxes, based on data pertaining to FY 201920, amounted to an estimated Rs. 1,314.27 billion. Tax expenditure in sales tax amounted highest at Rs. 578.46 billion (44% of the total), while in income tax amounted to Rs. 448.05 billion (34%), and in Customs, to Rs. 287.77 billion (22%). In last fiscal year 2019-20, FBR’s tax collection was Rs. 3,997.4 billion. Hence, tax expenditure to total collection ratio comes to about 33%, and tax expenditure to GDP ratio stands at around 3.2%.
The tax expenditure estimates are unadjusted amounts, meaning that elimination or repeal of a specific exemption would not necessarily produce the rupee amounts cited in this report. Actual receipts would depend on enforcement, taxpayer compliance, effective dates of legislation repealing the exemption, exact wording of any legislation, taxpayer’s behavior, and some other economic factors.
This report briefly outlines federal tax exemptions and concessions. These descriptions do not grant rights or impose obligations; rather, the tax laws and rules made thereunder determine actual tax liability. Each estimate is based on the best information available from public and private sources, including FBR’s database. It would be exceptionally burdensome on taxpayers to require detailed reporting of transactions corresponding to each of the exemption sections and clauses. No such detailed reporting is imposed by statute or rules. Consequently, tax returns do not contain data sufficient to estimate the value of all exemptions and exclusions.
Estimation requires identification of pertinent, useful data available from various external sources. Where exemptions identified in tables have not been estimated, it is because requisite data does not exist or have not been identified and acquired from an external source.
============================================================Income Tax Estimates============================================================Summary of Tax Expenditure Estimates of Income Tax - FY 2021============================================================ Contents (Rs. Million)1 Allowances 37,3182 Tax Credits 105,3423 Exemptions from Total Income 267,1154 Reduction in Tax Rates 1245 Reduction in Tax Liability 2,8396 Exemption from Specific Provisions 2,6877 Others/Miscellaneous 32,621============================================================Total 448,046============================================================Allowances====================================================================================================================== Legal Description Intended EstimateSr. Reference (Exemption or Concession) Beneficiary (Rs in Mln)1 23 New business entities 30,110.002 23A Industrial undertaking set up in specified rural and 340.00 under developed areas or engaged in the manufacturing of cellular mobile phones3 60 Persons paying Zakat 1,116.384 60A Persons paying Workers’ Welfare Fund 2,522.405 60B Persons paying Workers’ Participation Fund 2,523.516 60C Individuals paying profit or share in rent and share in appreciation for value of house on loan by banks etc 646.677 60D Individuals having income of less than Rs. 1.5 million, 59.13 paying tuition fee======================================================================================================================Total 37,318.09======================================================================================================================Tax Credits======================================================================================================================Sr. Legal Description Tax Credits Reference (Exemption or Concession) Intended Estimate Beneficiary (Rs in Mln)======================================================================================================================1 61 Tax credit for Persons giving charitable 2,869.91 donations charitable donations2 62 Tax credit for investment in Persons (excluding shares and life insurance companies) investing in 2,222.31 shares, sukuks, or life insurance3 62A Tax credit for investment in Persons (excluding 21.72 health insurance companies) investing in health insurance4 63 Tax credit for contribution to Eligible persons as 915.68 an Approved Pension Fund. defined in sub- section (19A) of section 2 of Ordinance5 64B Tax credit for employment Corporate manufacturing 57.40 generation by manufacturers sector6 65B Tax credit for Non-Equity Corporate manufacturing 51,408.24 Investment in Plant & Machinery sector7 65B Tax credit for Equity Investment Corporate manufacturing 10,857.36 sector in Plant & Machinery8 65C Tax credit for enlistment in Companies opting for 181.17 registered Stock Exchange enlistment in a registered stock exchange9 65D Tax credit for newly established Corporate industrial 5,193.57 industrial undertakings units (including corporate dairy farming)10 65E Tax credit for industrial Corporate industrial 13,131.81 undertakings established before units (including the first day of July, 2011 corporate dairy farming)11 100C Tax credit for Non-profit Non-profit organizations, 18,482.94 organizations, trusts or welfare trusts, welfare institutions institutions======================================================================================================================Total 105,342.11======================================================================================================================Exemptions from Total Income======================================================================================================================1 3 Salary of foreign personnel Foreign experts 119.23 engaged by institutions of the working with Agha Agha Khan Development Khan Development Network Network, (Pakistan)2 4 Salary received by Pakistani Employees (Pakistani 67.68 seafarers seafarers)3 5 Foreign allowances (Government Employees (diplomats) 1,001.86 of Pakistan)4 8 Pension received by a citizen of Employees 2,732.76 Pakistan from a former employer (pensioners)5 9 Pensions (Government) Employees (retired 13,710.00 government servants & military personnel)6 12 Commutation of Pension Employees 9,642.77 (pensioners)7 13 Gratuities Employees (recipients 695.47 of gratuity payments)8 17 Income derived by the families Families and 2.10 and dependents of the dependents of the Shaheeds belonging to the Civil Shaheeds belonging Armed Forces of Pakistan to the Civil Armed Forces9 19 Encashment of leave Employees (retiring 1,139.86 preparatory to retirement personnel of Armed Forces or Government servant)10 22 Payments from a provident fund Employees (recipient 6,686.92 to which the Provident Funds Act, of payments from 1925 applies. provident funds11 23 The accumulated balance due Employees 246.41 and becoming payable to an participating in a employee participating in a recognized provident recognized provident fund. fund.12 23A The accumulated balance up to Voluntary participants 79.63 [50]% received from a pension in pension funds fund at the time of eligible person’s- (a) retirement; or (b) disability rendering him unable to work; or (c) death by his nominated survivors.13 23B Monthly installments from an Pensioners 25.17 income payment plan invested with a pension fund manager14 23C Withdrawal of accumulated Pensioners 147.75 balance from approved pension fund15 24 Benevolent grants paid from the Employees (recipient 482.90 Benevolent Fund (under Central of benevolent grants) Employee Benevolent Fund and Group Insurance Act, 1969)16 25 Payments from an approved Families of deceased 43.97 superannuation fund made on the enrolled in approved death of a beneficiary superannuation funds17 26 Sums received by workers Low-income workers; - from Workers Participation recipients of payments Fund (WPF) from WPF18 39 Special allowance or benefit for Employees receiving 947.76 employees to meet expenses payments to meet incurred in the performance of the expenses in the duties performance of duties19 40 Income of a newspaper employee Newspaper employees- representing Local Travelling Allowance20 53A Employment related Employees receiving 134.16 perquisites (food, education, employment-related medical treatment and any perquisites. other perquisites, if provided by employer for free or at subsidized rates)21 55 House rent allowance (to Judiciary of Superior 35.00 judges of the Supreme Court of Courts Pakistan or of High Courts)22 56 Perquisites, benefits and Judiciary of Superior 290.00 allowances received by a Judge Courts of Supreme Court of Pakistan and Judge of High Court23 57 (1) Any income from voluntary * National Investment 40.20 contributions, house property (Unit) Trust of Pakistan, and investments in securities of Mutual Funds set up by the Federal Government derived Investment Corporation by the following, namely:- of Pakistan Sheikh National Investment (Unit) Trust Sultan Trust Karachi. of Pakistan Mutual Fund set up by the Investment Corporation of Pakistan, Sheikh Sultan Trust, Karachi24 57 (2) Income other than capital gain on Mutual funds,- stock and shares of public investment companies, company, PTC vouchers, collective investment Modaraba certificates, or any schemes, REIT instrument of redeemable capital schemes, Private and derivative products held for Equity & Venture less than 12 months derived by Capital Funds, and any Mutual Fund, investment National Investment company, or a collective (Unit) Trust of Pakistan investment scheme or a REIT Scheme or Private Equity and Venture Capital Fund or the National Investment (Unit) Trust of Pakistan, if not less than ninety per cent of its income of that year is distributed amongst the Unit- holders.======================================================================================================================Any income of the following funds and institution======================================================================================================================25 57 (3) (i) a provident fund to which Provident Funds 1,783.60 the Provident Funds Act, 1925 applies;26 57 (3) (ii) trustees on behalf of a Trustees of recognized 13,120.00 recognized provident fund or an provident funds, approved superannuation fund or approved an approved gratuity fund; superannuation funds, and approved gratuity funds27 57 (3) (iii) a benevolent fund or group Benevolent funds and 138.60 insurance scheme approved by group insurance the Board for the purposes of this schemes clause;28 57 (3) (iv) Service Fund; Service Funds; -29 57 (3) (v) Employees Old Age Benefits Employees Old Age 5,465.78 Institution established under the Benefits Institution Employees Old Age Benefit Act, 1976 (XIV of 1976);30 57 (3) (vii) any Unit, Station or Units, Stations or - Regimental Institute; and Regimental Institutes31 57 (3) (vi) any recognized Regimental Regimental Thrift and - Thrift and Savings Fund, the assets Savings Funds of which consist solely of deposits made by members and profits earned by investment thereof;32 57 (3) (viii) a Pension Fund approved by Approved Pension 740.18 the SECP Funds33 57 (3) (ix) any profit or gain or benefit Pension funds under 15.00 derived by a pension fund the Voluntary Pension manager from a pension Fund System Rules 2005 approved under the Voluntary Pension System Rules, 2005, on redemption of the seed capital invested in pension fund as specified in the Voluntary Pension System Rules, 2005;34 57 (3) (xi) International Irrigation International Irrigation 0 Management Institute. Management Institute35 57 (3) (xii) Punjab Pension Fund Punjab Pension Fund 2,271.37 established under the Punjab Pension Fund Act, 2007 (I of 2007) and the trust established thereunder.36 57 (3) (xiii) Sindh Province Pension Sindh Province 1,162.26 Fund established under the Pension Fund Sindh Province Pension Fund Ordinance, 2002.37 57 (3) (xiv) Punjab General Punjab General 161.10 Provident Investment Fund Provident Investment established under the Punjab Fund General Provident Investment Fund Act, 2009 (V of 2009) and the trust established thereunder.”38 57 (3) (xv) Khyber Pakhtunkhwa Khyber Pakhtunkhwa 219.18 Retirement Benefits and Death Retirement Benefits Compensation Fund. and Death Compensation Fund39 57 (3) (xvi) Khyber Pakhtunkhwa Khyber Pakhtunkhwa 1,118.03 General Provident Investment General Provident Fund. Investment Fund40 57 (3) (xvii) Khyber Pakhtunkhwa Khyber Pakhtunkhwa 1,465.68 Pension Fund ; Pension Fund======================================================================================================================Any amount paid as donation to the following institution,foundations, societies, boards, trusts and funds======================================================================================================================41 61 (i) any Sports Board or ibid n.a. institution recognized by the Federal Government for the purposes of promoting, controlling or regulating any sport or game ibid 431.5242 61 (ia) The Citizens Foundation ibid -43 61 (iii) Fund for Promotion of Science and Technology in Pakistan ibid -44 61 (iv) Fund for Retarded and Handicapped Children ibid n.a.45 61 (v) National Trust Fund for the Disabled ibid n.a.46 61 (vii) Fund for Development of Mazaar of Hazrat Burri Imam ibid n.a.47 61 (viii) Rabita-e-Islami’s Project for printing copies of the Holy Quran48 61 (ix) Fatimid Foundation, Karachi ibid 15.8349 61 (x) Al-Shifa Trust ibid -50 61 (xii) Society for the Promotion of ibid - Engineering Sciences and Technology in Pakistan51 61 (xxiii) Citizens-Police Liaison ibid - Committee, Central Reporting Cell, Sindh Governor House, Karachi52 61 (xxiv) ICIC Foundation ibid -53 61 (xxvi) National Management ibid - Foundation54 61 (xxvii) Endowment Fund of the ibid - institutions of the Agha Khan Development Network55 61 (xxviii) Shaheed Zulfiqar Ali ibid n.a. Bhutto Memorial Awards Society56 61 (xxix) Iqbal Memorial Fund ibid -57 61 (xxx) Cancer Research ibid - Foundation of Pakistan, Lahore58 61 (xxxi) Shaukat Khanum ibid 1,026.20 Memorial Trust, Lahore59 61 (xxxii) Christian Memorial ibid 0.01 Hospital, Sialkot60 61 (xxxiii) National Museums, ibid n.a. National Libraries and Monuments or Institutions declared to be National Heritage by the Federal Government61 61 (xxxiv) Mumtaz Bakhtawar ibid 8.31 Memorial Trust Hospital, Lahore62 61 (xxxv) Kashmir Fund for ibid n.a. Rehabilitation of Kashmir Refugees and Freedom Fighters63 61 (xxxvi) Institutions of the ibid 227.00 Agha Khan Development Network (Pakistan)64 61 (xxxvii) Azad Kashmir President’s ibid - Mujahid Fund, 1972; National Institute of Cardiovascular Diseases, (Pakistan) Karachi; Businessmen Hospital Trust, Lahore; Premier Trust Hospital, Mardan; Faisal Shaheed Memorial Hospital Trust, Gujranwala; Khair-un-Nisa Hospital Foundation, Lahore; Sind and Balochistan Advocates Benevolent Fund; Rashid Minhas Memorial Hospital Fund.65 61 (xxxviii) Any relief or welfare ibid - fund established by the Federal Government;66 61 (xxxix) Mohatta Palace Gallery ibid - Trust67 61 (xl) Bagh-e-Quaid-e-Azam ibid - project, Karachi68 61 (xli) Any amount donated for ibid - Tameer-e-Karachi Fund69 61 (xlii) Pakistan Red Crescent ibid - Society70 61 (xliii) Bank of Commerce and ibid n.a. Credit International Foundation for Advancement of Science and Technology71 61 (xliv) Any amount donated to ibid - Federal Board of Revenue Foundation.72 61 (xlv) The Indus Hospital, Karachi ibid 460.7073 61 (xlvi) Pakistan Sweet Homes ibid - Angels and Fairies Place74 61 (xlvii) Al-Shifa Trust Eye ibid 33.53 Hospital75 61 (xlviii) Aziz Tabba Foundation ibid 163.5276 61 (xlix) Sindh Institute of Urology ibid 142.42 andTransplantation, SIUT Trust and Society for the Welfare of SIUT77 61 (i) Sharif Trust ibid 157.4178 61 (ii) The Kidney Centre Post ibid - Graduate Institute79 61 (Iii) Pakistan Disabled ibid - Foundation80 61 (Iiii) Sardar Trust Eye Hospital, ibid - Lahore81 61 (Iiv) Supreme Court of ibid - Pakistan Diamer Bhasha & Mohmand Dams82 61 (lv) Layton Rahmatullah ibid 270.36 Benevolent Trust (LRBT)83 61 (lvi) Akhuwat ibid 209.3284 61 The Prime Minister Covid-19 ibid - Pandemic Relief Fund 202085 61 Ghulam Ishaque Khan ibid - Institute of Engineering Science & Technology86 61 Lahore University of ibid 72.42 Management Sciences (ivx) Dawat-e-Hadiya Karachi87 61 Baitussalam Welfare Trust ibid 144.6588 61 Patient’s Aid Foundation ibid 60.9289 61 Alkhidmat Foundation ibid 3.0490 62 Alamgir Welfare Trust ibid 263.34 International91 64A Any amount donated to the Persons making - Prime Minister’s Special Fund donations into the said for victims of terrorism Fund.92 64B Any amount donated to the Persons making - Chief Minister’s (Punjab) Relief donations into the said Fund for Internally Displaced Fund. Persons (IDPs) of NWFP.]93 64C Prime Minister’s Flood Relief Persons making - Fund 2010 and Provincial donations into the said Chief Ministers’ Relief Funds, Fund. for victims of flood 2010.94 65A Income for any tax year Emigrants and their - commencing from the tax year families in Pakistan 2003, derived from the Welfare Fund created under rule-26 of the Emigration Rules, 1979 (made under section 16 of the Emigration Ordinance, 1979 (XVIII of 1979), except the in- come generated by the aforesaid Fund through commercial activities.======================================================================================================================Any income derived by following entities: Specific Entities by name======================================================================================================================95 66 i. Abdul Sattar Edhi Abdul Sattar Edhi 870.84 Foundation, Karachi Foundation, Karachi96 66 ii. Al-Shifa Trust, Rawalpindi Al-Shifa Trust, - Rawalpindi97 66 iii. Bilquis Edhi Foundation, Bilquis Edhi 429.47 Karachi Foundation, Karachi98 66 iv. Fatimid Foundation, Fatimid Foundation, - Karachi Karachi99 66 vi. International Islamic Trade International Islamic - Finance Corporation Trade Finance Corporation100 66 vii. Islamic Corporation for Islamic Corporation for - Development of Private Sector Development of Private Sector101 66 viii. National Memorial Bab-e- National Memorial Bab- - Pakistan Trust e-Pakistan Trust102 66 ix. Pakistan Agricultural Pakistan Agricultural 0.40 Research Council, Islamabad Research Council, Islamabad103 66 x. Pakistan Engineering Pakistan Engineering 480.10 Council Council104 66 xi. The corporatized entities of The corporatized 5,209.13 Pakistan Water and Power entities of Pakistan Development Authority Water and Power Development Authority105 66 xii. The Institution of The Institution of 11.00 Engineers, Pakistan, Lahore Engineers, Pakistan, Lahore106 66 (xiia) The Prime Minister’s The Prime Minister’s - Special Fund for victims of Special Fund for victims terrorism of terrorism107 66 (xiib) Chief Minister’s (Punjab) Chief Minister’s - Relief Fund for Internally (Punjab) Relief Fund for Displaced Persons (IDPs) of Internally Displaced NWFP Persons (IDPs) of NWFP108 66 xiii. The Institutions of the The Institutions of the 1,445.65 Agha Khan Development Agha Khan Network (Pakistan) Development Network (Pakistan)109 66 xiv. The Liaquat National The Liaquat National 196.01 Hospital Association, Karachi Hospital Association, Karachi110 66 xv. The Pakistan Council of The Pakistan Council of 125.11 Scientific and Industrial Scientific and Industrial Research Research111 66 xvi. The Pakistan Water and The Pakistan Water and 19,496.60 Power Development Authority Power Development Authority112 66 xvii. WAPDA First Sukuk WAPDA First Sukuk - Company Limited Company Limited113 66 (xix) Pension of a former Former Presidents of - President of Pakistan and his Pakistan and their widow under the President widows Pension Act, 1974114 66 (xx) State Bank of Pakistan State Bank of Pakistan 48,514.55 and State Bank of Pakistan and State Bank of Banking Services Corporation Pakistan Banking Services Corporation115 66 (xxi) International Finance International Finance - Corporation Corporation116 66 (xxii) Pakistan Domestic Pakistan Domestic - Sukuk Company Ltd Sukuk Company Ltd117 66 (xxiii) The Asian Development The Asian Development - Bank Bank118 66 (xxiv) The ECO Trade and The ECO Trade and 552.51 Development Bank Development Bank119 66 (xxv) The Islamic Chamber of The Islamic Chamber of - Commerce and Industry under Commerce and Industry the Organization of Islamic under the Organization Conference (OIC) of Islamic Conference (OIC)120 66 (xxvi) COMSATS COMSATS -121 66 (xxvii) WAPDA on issuance of WAPDA - twenty billion rupees TFC’s/SUKUK certificates for consideration of Diamer Bhasha Dam Projects122 66 (xxviii) Federal Board of Federal Board of - Revenue Foundation Revenue Foundation123 66 (xxix) WAPDA Second Sukuk WAPDA Second Sukuk - Company Limited Company Limited124 66 (xxx) The Citizens Foundation The Citizens 66.07 Foundation125 66 (xxxi) Sindh Institute of Sindh Institute of 918.73 Urology and Transplantation, Urology and Trans- SIUT Trust and Society for the plantation, SIUT Trust Welfare of SIUT and Society for the Welfare of SIUT126 66 (xxxii) Greenstar Social Greenstar Social 82.94 Marketing Pakistan Marketing Pakistan (Guarantee) Limited (Guarantee) Limited127 66 (xxxiii) Pakistan International Pakistan International n.a. Sukuk Company Limited Sukuk Company Limited128 66 (xxxiii) The Indus Hospital, The Indus Hospital, 120.52 Karachi Karachi129 66 (xxxiv) Second Pakistan Second Pakistan - International Sukuk Company International Sukuk Limited Company Limited130 66 (xxxv) Third Pakistan Third Pakistan - International Sukuk Company International Sukuk Limited Company Limited131 66 (xxxvi) Asian Infrastructure Asian Infrastructure - Investment Bank and persons Investment Bank as provided in Article 51 of Chapter IX of the Articles of Agreement signed and ratified by Pakistan and entered into force on the 25th December, 2015.132 66 (xxxvii) Gulab Devi Chest Gulab Devi Chest - Hospital. Hospital.133 66 (xxxviii) Pakistan Poverty Pakistan Poverty 617.33 Alleviation Fund. Alleviation Fund.134 66 (xxxix) National Academy of National Academy of 5.20 Performing Arts. Performing Arts.135 66 (xl) Pakistan Sweet Homes Pakistan Sweet Homes 19.37 Angels and Fairies Place. Angels and Fairies Place.136 66 (xli) National Rural Support National Rural Support 420.10 Programme. Programme.137 66 (xlii) SAARC Energy Centre. SAARC Energy Centre. -138 66 (xliii) Pakistan Bar Council. Pakistan Bar Council. 0.74139 66 (xliv) Pakistan Centre for Pakistan Centre for 5.11 Philanthropy. Philanthropy.140 66 (xlv) Pakistan Mortgage Pakistan Mortgage 264.18 Refinance Company Limited. Refinance Company Limited.141 66 (xlvi) Aziz Tabba Foundation. Aziz Tabba Foundation. 46.12142 66 (l) Al-Shifa Trust Eye Hospital. Al-Shifa Trust Eye n.a. Hospital.143 66 (li) Saylani Welfare Saylani Welfare 34.00 International Trust. International Trust.144 66 (lii) Shaukat Khanum Memorial Shaukat Khanum 2200.66 Trust. Memorial Trust.145 66 (liii) Layton Rahmatullah Layton Rahmatullah - Benevolent Trust (LRBT). Benevolent Trust (LRBT).146 66 (liv) The Kidney Centre Post The Kidney Centre Post 14.00 Graduate Training Institute. Graduate Training Institute.147 66 (lv) Pakistan Disabled Pakistan Disabled - Foundation. Foundation.148 66 (lvi) Forman Christian Forman Christian 94.47 College; College;149 66 (lvii) Habib University Habib University 3.21 Foundation. Foundation.150 66 (lviii) Begum Akhtar Rukhsana Begum Akhtar - Memorial Trust Hospital. Rukhsana Memorial Trust Hospital.151 66 (lix) Al-Khidmat Foundation. Al-Khidmat Foundation. -152 66 (lx) Dawat-e-Islami Trust Dawat-e-Islami Trust 263.38153 66 (Ixi) Sardar Trust Eye Hospital, Sardar Trust Eye - Lahore. Hospital, Lahore.154 66 (lxii) Supreme Court of Supreme Court of 0.30 Pakistan Diamer Bhasha & Pakistan Diamer Mohmand Dams Fund Bhasha & Mohmand Dams Fund155 66 (lxiii) National Disaster Risk National Disaster Risk 57.20 Management Fund. Management Fund.156 66 (lxiv) Deposit Protection Deposit Protection 4,377.60 Corporation Corporation (Already accounted for under sub-clause (xx) under consolidated figure for SBP)157 66 (lxv) Sarmaya-e-Pakistan Sarmaya-e-Pakistan - Limited Limited158 66 (lxvi) Akhuwat (lxvi) Akhuwat 192.86159 66 (lxvii) Audit Oversight Board. Audit Oversight Board. 5.68160 66 (lxviii) Patient’s Aid Patient’s Aid 13.00 Foundation. Foundation.161 72A Any income derived by Sukuk Sukuk holders 3,436.50 holder in relation to Sukuk issued by “The Second Pakistan International Sukuk Company Limited” and the Third Pakistan International Sukuk Company Limited, including any gain on disposal of such Sukuk.162 74 Profit on debt derived by Hub Hub Power Company 9.37 Power Company Limited on or Limited after the first day of July,1991163 75 Any income of an agency of a Agencies of foreign 7,362.80 foreign Government, a foreign Governments, foreign national (company, firm or nationals or any other association of persons), or any non-resident person other Nonresident person approved by the approved by the Federal Federal Government Government for the purposes of this clause, from profit on moneys borrowed under a loan agreement or in respect of foreign currency instrument approved by the Federal Government.164 78 Profit on debt on foreign Foreign currency n.a. currency accounts account holders165 79 Profit on debt derived by non- Citizens of Pakistan n.a. resident Pakistanis on rupee residing abroad and accounts remitting foreign exchange166 80 Income derived from a private Foreign currency - foreign currency account held account holder resident with an authorized bank in individual citizens of Pakistan, or certificate of Pakistan investment issued by investment banks, by a resident individual who is a citizen of Pakistan: (This exemption is not available in respect of any incremental deposits made in the said accounts on or after the 16th day of December, 1999)167 90 Profit on debt payable by Financial institutions in n.a. Pakistani industrial foreign countries undertakings to financial lending with approval of institutions in foreign countries Federal Government of Pakistan168 90A Profit on debt derived by any Investors/buyers of 4.20 person on bonds issued by bonds issued by Pakistan Mortgage Refinance Pakistan Mortgage Company to refinance the Refinance Company residential housing mortgage market, for a period of five years169 91 Text-book boards of Provinces Text-book boards of 583.40 provinces170 98 Sports Boards (except Regulators, 61.84 Pakistan Cricket Board). organizations and boards established by government to en- courage major games and sports171 99 Collective Investment Collective Investment 16,176.50 Schemes or a REIT Schemes Schemes and REIT Schemes that are distributing more than 90% of their incomes to certificate holders/ shareholders.172 99A Profits and gains on sale of Taxpayers selling - immovable property to a REIT immovable property to Scheme a Developmental REIT Scheme or a rental REIT Scheme173 100 Modarabas Modarabas 261.25174 101 Venture capital companies & Venture capital 3.63 venture capital funds companies venture registered under Venture capital funds, and Capital Companies and Funds Private Equity & Management Rules, 2000 and Venture Capital Funds. a Private Equity and Venture Capital Funds175 102A Income representing a subsidy Recipients of subsidies 4,508.87 granted by the Federal granted by Federal Government Government176 103 Distributions received by a Investors investing in 1.00 taxpayer from collective debt or money market investment schemes or mutual mutual funds and funds (which are debt or collective investment money market funds and do schemes not invest in shares) out of capital gains177 104 Income derived by the Libyan Libyan Arab Foreign - Arab Foreign Investment Investment Company Company being dividend of the Pak-Libya Holding Company.178 105 Income derived by the Government of 26.00 Government of Kingdom of Kingdom of Saudi Saudi Arabia being dividend of Arabia the Saudi-Pak Industrial and Agricultural Investment Company Limited.179 105A Income derived by Kuwait Kuwait Foreign Trading 67.50 Foreign Trading Contracting Contracting & and Investment Company or Investment Company, Kuwait Investment Authority and Kuwait Investment being dividend of the Pak Authority Kuwait Investment Company in Pakistan180 105B Income received by a taxpayer Taxpayers receiving 44.00 from a corporate agricultural dividend income from enterprise, distributed as corporate agricultural dividend out of its income from enterprises agriculture.181 110B Any gain on transfer of a Members of Stock - capital asset, being a Exchange membership right held by a member of an existing stock exchange, for acquisition of shares and trading or clearing rights acquired by such member in new corporatized stock exchange in the course of corporatization of an existing stock exchange.182 110C Any gain by a person on Persons deriving gain - transfer of a capital asset, being from bonds issued by a bond issued by Pakistan Pakistan Mortgage Mortgage Refinance Company Refinance Company to refinance the residential housing mortgage market, during the period from the 1st day of July, 2018 till the 30th day of June, 2023.183 114 Income under the head "capital Industrial undertakings n.a. gains" derived by industrial set up in "Zones" within undertakings set up in a "Zone" the meaning of Export within the meaning of the Processing Zones Export Processing Zones Authority Ordinance Authority Ordinance, 1980184 126 Public sector universities Public sector 10,715.95 universities185 126A Income derived by China Listed companies 65.12 Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gawadar International Terminal Limited, Gawadar Marine Services Limited and Gawadar Free Zone Company Limited from Gawadar Port operations for a period of twenty three years, with effect from the sixth day of February, 2007.186 126AA Profit and gains derived by a All businesses set up in - taxpayer from businesses set Gawadar Free Zone up in the Gawadar Free Zone Area187 126AB Profit on debt derived by- Foreign lenders or public - (a) any foreign lender; or sector banks/State bank (b) any local bank having having financing more than 75 per cent agreement with China shareholding of the Overseas Ports Holding Government or the State Bank Company Limited of Pakistan, under a Financing Agreement with the China Overseas Ports Holding Company Limited188 126AC Income derived by contractors Contractors and sub- 105.52 and sub-con-tractors of China contractors of listed Overseas Ports Holding companies from Company Limited, China Gawadar Port Overseas Ports Holding operations Company Pakistan (Private) Limited, Gawadar International Terminal Limited, Gawadar Marine Services Limited and Gawadar Free Zone Company Limited from Gawadar Port operations189 126AD Income derived by China China Overseas Ports - Overseas Ports Holding Holding Company Company Limited being Limited dividend received from China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited Gwadar Marine Services Limited and Gwadar Free Zone Company Limited190 126B Profit and gains derived by Khalifa Coastal Refinery - Khalifa Coastal Refinery191 126BA Refineries Oil refineries 1,724.66192 126C Industrial undertakings set up Industrial undertakings - in Larkano Industrial Estate set up in Larkano Industrial Estate193 126D Industrial undertakings set up Industrial undertaking - in the Gawadar declared by set up in the Gawadar the Federal Government to be a Zone within the meaning of Export Processing Zone Authority Ordinance, 1980194 126E Income derived by a zone Zone enterprise as 200.00 enterprise as de-fined in the defined in the Special Special Economic Zones Act, Economic Zones Act, 2012 and developer of zone for 2012, and developers of a period of ten years zones.195 126G Income of Astro Plastics (Pvt) Astro Plastics (Pvt) - Limited derived from their Limited, M/s. Novatex project Biaxially Oriented Limited Polyethylene Terephthalate (BOPET) Project; and 2. Income of Novatex Limited derived from their project Biaxially Oriented Polyethylene Terephthalate (BOPET) Project.196 126H Income from fruit processing Fruit processing or - or preservation units set up in preservation units set up Balochistan Province, in Balochistan Province, Malakand Division, Gilgit Malakand Division, Gilgit Baltistan and FATA Baltistan and ex-FATA197 126I Industrial undertakings Manufacturers of plant, 12.00 engaged in the manufacture of machinery & equipment plant, machinery, equipment for use in generation of and items with dedicated use renewable energy for generation of renewable sources. energy198 126J Profits and gains derived by a Industrial undertakings n.a. taxpayer, from an industrial engaged in operating undertaking engaged in warehousing or cold operating warehousing or cold chain facilities for chain facilities for storage of storage of agriculture agriculture produce produce199 126K Profits and gains derived by Halal meat production - industrial undertakings set up units for establishing and operating a halal meat production unit200 126L Industrial undertakings set up Industrial undertakings 96.55 in the Provinces of Khyber set up in the Provinces Pukhtunkhwa and Baluchistan of Khyber Pukhtunkhwa and Baluchistan between 1st day of July, 2015and 30th day of June, 2018201 126M Profits and gains derived by a Companies deriving 4.10 taxpayer from a transmission income from line project set up in Pakistan transmission line projects in Pakistan202 126N Profits and gains derived by a Local cellular mobile 0.40 taxpayer from an industrial phone manufacturers undertaking, duly certified by the Pakistan Telecommunication Authority, en-gaged in the manufacturing of cellular mobile phones203 126O Profits and gains of a company Green field industrial - from a green field industrial undertakings undertaking incorporated on or after the first day of July, 2019204 131 Royalty, commission or fees Innovators and 1.50 earned from a foreign technical experts enterprise in consideration for the use outside Pakistan of any patent, invention, model, design, secret process or formula or similar property right205 132 Profits and gains derived by a Electric power 47,528.40 taxpayer from an electric generation projects power generation project set up in Pakistan on or after the 1st day of July, 1988.206 132A Profit and gains derived by Bosicor Oil Pakistan - Bosicor Oil Pakistan Limited Limited (refinery)207 132B Coal mining projects in Sindh, Coal mining projects in - supplying coal exclusively to Sindh power generation projects.208 133 Income from exports of Exporters of computer 1,944.60 computer software or IT software, IT services or services or IT enabled IT enabled services services209 135A Income derived by non- Non-residents deriving - residents from investment in income from OGDCL exchangeable bonds investment in OGDCL issued by the Federal exchangeable bonds Government. issued by the Federal Government.210 136 Income of a special purpose Special purpose - vehicle as defined in the Asset vehicles as defined in Backed Securitization Rules, the Asset Backed 1999 Securitization Rules, 1999211 139 Medical treatment or Employees receiving 1,825.76 hospitalization for employees free medical care from employers.212 141 Profit and gains derived by LNG Terminal 1,714.29 LNG Terminal Operators and Operators and Terminal Owners Terminal Owners213 142 Income from social security Provincial social 5,636.22 contributions derived by the four security institutions provincial Social Security institutions214 143 Start-ups Startups as defined in 552.75 clause (62A) of section 2 of the ITO-2001215 145A, Income of individuals Individuals domiciled 4,460.00 146 domiciled or companies and or companies and associations of persons associations of persons resident in the erstwhile Tribal resident in the ex-Tribal Areas Areas216 16, Others Others 1,203.40 39A, 51, 52======================================================================================================================Total 267,115.10======================================================================================================================Reduction in Tax Rates======================================================================================================================Sr. Legal Description Intended Estimate Reference (Exemption or Concession) Beneficiary (Rs in Mln)1 3 The tax in respect of income Service providers and - from services rendered outside contractors Pakistan and construction contracts executed outside Pakistan shall be 50% of the rates as specified in Division III of Part III of the First Schedule2 3B The income of Pakistan Cricket Pakistan Cricket Board - Board derived from sources outside Pakistan shall be taxed at a rate of four per cent of the gross receipts from such sources3 18 In the case of a Modaraba the rate Modarabas - of income tax shall be 25% of total income excluding such part of total income to which Division III of Part I of the First Schedule or section153 or section 154 applies.4 18A The rate of tax shall be reduced to Companies setting up - 20% for a company setting up an industrial undertakings industrial undertaking between between 2014 and 2017 the first day of July, 2014 to the thirtieth day of June, 2017, for a period of five years beginning from the month in which the industrial undertaking is set up or commercial production is commenced whichever is later5 18B The rate of tax shall be reduced by Shariah compliant companies - 2% in case of a company whose whose shares are traded on shares are traded on stock stock exchange exchange if it fulfills prescribed Shariah compliant criteria approved by State Bank of Pakistan, Securities and Exchange Commission of Pakistan and the Board, and derives income from manufacturing activities only6 27 The tax on payments under the Employees (civil servants of 100.00 Compulsory Monetization of BS-20 and above) Transport Facility for Civil Servants in BS-20 to BS-22 (as reduced by deduction of driver's salary) shall be charged at the rate of 5% as a separate block of income.7 28A The rate of tax under section 148 Consumers of Hybrid Cars24.00 on import of hybrid cars shall be reduced as below: Up to 1200 cc-100% 1201 to 1800 cc-50% 1801 to 2500 cc-25%8 28C The rates of tax as specified in E-commerce sector - Division II of Part-IV of the First Schedule shall be five per-cent in the case of a person running online marketplace as defined in clause (38B) of section 2.======================================================================================================================Total 124.00======================================================================================================================Reduction in Tax Liability====================================================================================================================== Estimate Legal Description Intended (Rs inSr. Reference (Exemption or Concession) Beneficiary Mln)1 1 (1) Any amount received as flying Employees (persons 91.07 allowance by flight engineers, receiving flying allowance) navigators of Pakistan Armed Forces, Pakistani Airlines or Civil Aviation Authority, Junior Commissioned Officers or other ranks of Pakistan Armed Forces; and submarine allowance by the officers of the Pakistan Navy, shall be taxed @ 2.5% as a separate block of income2 1 (1AA) Total allowances received by pilots Employees (pilots of 321.18 of any Pakistani airlines shall be Pakistani Airlines) taxed at a rate of 7.5%, provided that the reduction under this clause shall be available to so much of the allowances as exceeds an amount equal to the basic pay3 1 (2) Tax concession for full time Employees (full time teacher 2,425.00 teacher or a researcher or a researcher)4 4 In respect of old and used Importers of old and used 1.30 automotive vehicles, tax under cars section 148 shall not exceed the amount specified in Notification No. S.R.O. 577 (I)/2005, dated the 6th June, 2005.5 7 The amount of tax payable by Foreign film-makers - foreign Film makers from making films in Pakistan shall be reduced by fifty percent on income from film- making in Pakistan. -6 8 The amount of tax payable by Film making companies resident companies deriving based in Pakistan income from film-making shall be reduced by seventy percent on income from film-making.7 9 The tax payable on profits and Taxpayers deriving income n.a. gains derived by a person from low from low cost housing cost housing projects shall be projects reduced by fifty percent.====================================================================================================================================================Total 2,838.55====================================================================================================================================================Exemption from Specific Provisions==================================================================================================================================================== Estimate Legal Description Intended (Rs inSr. Reference (Exemption or Concession) Beneficiary Mln)====================================================================================================================================================1 5 The provisions of section 111 Foreign currency account - regarding un-explained income or holders assets shall not apply in respect of foreign exchange deposited in a private Foreign Currency account, excluding such accounts where incremental deposits were made on or after the 16th day of December, 19992 11A (iii) Pakistan Red Crescent Society Pakistan Red Crescent 4.52 Society3 11A (xiv) Corporate and Industrial Corporate and Industrial - Restructuring Corporation Restructuring Corporation (CIRC) (CIRC)4 11A (xxxi) National Disaster Risk National Disaster Risk 57.20 Management Fund. Management Fund.======================================================================================================================Note: Other entities under clause 11A which count as tax expenditure have already beencovered in Part 1 of Second Schedule M/s China State 840.00====================================================================================================================== 60A The provisions of section 148 shall5 Construction Engineering not apply for import of plant, machinery and equipment in the Corporation Ltd. (M/s CSCEC); and M/s China case of:- Communication (a) M/s China State Construction Engineering Corporation Ltd. Construction Company (M/s CSCEC); and (M/s CCCC). (b) M/s China Communication Construction Company (M/s CCCC).6 60D The provisions of section 148 shall Industrial undertakings set up 25.00 not apply on import of firefighting in the special economic zones equipment by industrial undertakings set up in the special economic zones established by the Federal Government.7 63 M/s Dawat-e-Hadiya, Karachi and M/s Dawat-e-Hadiya, - Lahore University of Management Karachi and Lahore Sciences, Lahore] shall be University of deemed to have been approved by Management Sciences, the Commissioner for the purpose Lahore of sub-section (36) of section 2 notwithstanding the provisions of clause (c) of sub-section (36) of section 2..8 71 The provisions of this Ordinance M/s TAISEI Corporation - shall not be applicable to the M/s TAISEI Corporation un-der the agreement between National Highway Authority, GOP9 77 Provisions of sections 148 and 153 Importers and suppliers of 1,230.00 shall not be applicable on import items with dedicated use of and subsequent supply of items renewable sources of energy with dedicated use of renewable sources of energy10 78 Coal Mining and Coal based Power Shareholders of coal mining 0.68 Generation Projects in Sindh:- and coal based power (i) the dividend income of the generation projects in Sindh shareholders of such a project shall be exempt from provisions of section 150. (ii) the payments made on account of sale or supply of goods or providing or rendering of services during project construction and operations, shall be exempt from the provisions of section 152 (2A) and section 153."11 91 The provisions of section 148 Farming sector 530.00 shall not apply to- (i) Tillage and seed bed preparation (ii) equipment as specified below (iii) Seeding or planting equipment (iv) Irrigation, drainage and agro- chemical application equipment (v) Harvesting, threshing and storage equipment (vi) Post-harvest handling and processing & miscellaneous machinery12 102 The provisions of section 231B Beneficiaries of PM's Youth - (1A) shall not apply to light Business Loan Scheme commercial vehicles leased un- der the Prime Minister's Youth Business Loan Scheme.======================================================================================================================Total 2,687.40======================================================================================================================Others/Miscellaneous====================================================================================================================== Legal Description Intended EstimateSr. Reference (Exemption or Concession) Beneficiary (Rs in Mln)1 41 Agricultural income Agriculture sector -2 49 Federal Government, Provincial Government 32,620.45 Government, and Local organizations Government income.======================================================================================================================Total 32,620.45======================================================================================================================Grand Total 448,045.70======================================================================================================================Sr Summary of Tax Expenditure Estimates of Sales Tax-FY 2020 Rs. Million======================================================================================================================1 Zero Rating under 5th Schedule to Sales Tax Act 1990 12,8872 Exemption under 6th Schedule on (Imports) 173,8083 Exemption under 6th Schedule on Local supplies (after 30% adjustment) 156,1344 Reduced Rates Under 8th Schedule (1%) 3305 Reduced Rates Under 8th Schedule (2%) 90,2886 Reduced Rates Under 8th Schedule (5%) 27,1087 Reduced Rates Under 8th Schedule (7%) 4968 Reduced Rates Under 8th Schedule (8%) 1,39610 Reduced Rates Under 8th Schedule (10%) 69,59211 Reduced Rates Under 8th Schedule (12%) 19,32112 Sales Tax on cellular Mobile Phones under 9th Schedule 27,096======================================================================================================================Total 578,456======================================================================================================================Tax Exemption under 5th Schedule (Zero rated Items)======================================================================================================================S.No SCHEDULE ITEM Beneficiary Tax Expenditure1 Section 4 Preparations suitable for Manufacturing 8,202 (Zero Rated) infants, put up for retail (Industrial Inputs) sale] (PCT Heading General Masses (Food 1901.1000) products)2 Section 4 Supplies of raw materials Exporters, General 1,934 (Zero Rated) components and goods for Masses further manufacture of goods in the Export Processing Zones.3 Section 4 Supply, repair or Manufacturing 1,755 (Zero Rated) maintenance of any ship (Industrial Inputs) which is neither;4 Section 4 Raw materials, Manufacturing 995 (Zero Rated) components, sub- (Industrial Inputs) components and parts, if imported or purchased locally for use in the manufacturing of such plants and machinery as is chargeable to sales tax at the rate of zero percent, subject to the condition that the importer or purchaser of such goods holds a valid sales tax registration showing his registration category as manufacturer; and in case of import , all the conditions, restrictions, limitations and procedures as are imposed by notification under section 19 of the Customs Act,1969 (IV of 1969), shall apply5 Section 4 Supply to diplomats, Diplomatic Supplies 842 (Zero Rated) diplomatic missions, privileged persons and privileged organizations which are covered under various Acts, Orders, Rules, Regulations and Agreements passed by the Parliament or issued or agreed by the Government of Pakistan.]6 Section 4 Pens, ball pens, markers Educational Items 608 (Zero Rated) and porous tipped pens7 Section 4 Raw materials, packing Manufacturing 439 (Zero Rated) materials, sub- (Industrial Inputs) components, components, General Masses sub-assemblies and assemblies imported or purchased locally for the manufacture of the goods specified at S.no. 12 of 5th Schedule to Sales Tax Act, 1990, subject to the conditions, limitations8 Section 4 Import Of Color sets, Manufacturing 439 (Zero Rated) writing, drawing and (Industrial Inputs) marking inks and Erasers General Masses (4016.9210 and), Exercise (educational Items) Books (4820.2000), Pencil Sharpener (8214.1000), Geometry boxes (9017.2000), Pen, Ball pens, markers and porous tipp9 Section 4 12. Goods and the raw Manufacturing 439 (Zero Rated) materials, packing (Industrial Inputs) materials, sub- General Masses components, components, sub-assemblies and assemblies imported or purchased locally for the manufacture of the said goods, limitations and restrictions as specified in chapter xiv of sale10 Section 4 12 (xxiv) Pencil sharpeners Manufacturing 303 (Zero Rated) (PCT heading 8214.1000) (Industrial Inputs) General Masses (Educational Items)11 Section 4 Others Manufacturing 266 (Zero Rated) (Industrial Inputs) General Masses12 Section 4 Exercise books (PCT Manufacturing 238 (Zero Rated) heading 4820.2000) (Industrial Inputs) General Masses (Educational Items)13 Section 4 Bicycles (PCT heading Manufacturing 140 (Zero Rated) 87.12). (Industrial Inputs) General Masses14 Section 4 12 (xxii) Erasers (PCT Manufacturing 138 (Zero Rated) heading 4016.9210 and (Industrial Inputs) 4016.9290) General Masses (Educational Items)15 Section 4 1 (ii) Supply, repair or Manufacturing 127 (Zero Rated) maintenance of any (Industrial Inputs) aircraft which is neither;16 Section 4 Pencils including color Manufacturing 124 (Zero Rated) pencils (PCT heading (Industrial Inputs) 96.09) General Masses (Educational Items)17 Section 4 Supplies made to Manufacturing 115 (Zero Rated) exporters under the Duty (Industrial Inputs) and Tax Remission Rules, Exporters, 2001 subject to the observance of procedures, restrictions and conditions prescribed therein18 Section 4 Imports or supplies made Special Economic 96 (Zero Rated) to Gawadar Special Zone, Manufacturing Economic Zone, excluding (Industrial Inputs) vehicles falling under heading 87.02 of the Pakistan Customs Tariff, subject to such conditions, limitations and restrictions as the 3 [Board] may impose. ]19 Section 4 6 Supplies of such locally Manufacturing 80 (Zero Rated) manufactured plant and (Industrial Inputs) machinery 6 to petroleum and gas sector Exploration and Production companies, their contractors and sub- contractors] as may be specified by the Federal Government, by notification in the official Gazette, subject to such conditions and restrictions as may be specified in such notification.]20 Section 4 Supplies of locally Manufacturing 51 (Zero Rated) manufactured plant and (Industrial Inputs) machinery of the following specifications, to manufacturers in the Export Processing Zone, subject to the conditions, restrictions and procedure given below, namely:-21 Section 4 ship of gross tonnage of Manufacturing 49 (Zero Rated) less than 15 LDT; nor (Industrial Inputs)22 Section 4 9 Goods exempted under Manufacturing 42 (Zero Rated) section 13, if exported by a (Industrial Inputs) manufacturer23 Section 4 12 (xxi) Writing, drawing Manufacturing 39 (Zero Rated) and marking inks (PCT (Industrial Inputs) heading. General Masses (Educational Items)24 Section 4 1 (iii) Supply of spare parts Manufacturing 35 (Zero Rated) and equipment for ships (Industrial Inputs) and aircraft falling under (i) and (ii) above.25 Section 4 1 (v) Supply of equipment Manufacturing 22 (Zero Rated) and machinery for air (Industrial Inputs) navigation services.26 Section 4 12 (xxv) Geometry boxes Manufacturing 10 (Zero Rated) (PCT heading 9017.2000) (Industrial Inputs) General Masses (educational Items)27 Section 4 12 (xx) Colors in sets (PCT Manufacturing 6 (Zero Rated) heading 3213.1000). (Industrial Inputs) General Masses (Educational Items)28 Section 4 1 (ii) (b) an aircraft designed Manufacturing 6 (Zero Rated) or adapted for use for (Industrial Inputs) recreation or pleasure.29 Section 4 6 (A) supply of Locally Manufacturing 6 (Zero Rated) manufactured plant and (Industrial Inputs) machinery (EPZ) Exporters30 Section 4 1 (vi) Supply of equipment Manufacturing 4 (Zero Rated) and machinery for other (Industrial Inputs) services provided for the handling of ships or aircraft in a port or Customs Airport31 Section 4 1 (iv) Supply of equipment Manufacturing 3 (Zero Rated) and machinery for pilot (Industrial Inputs) age, salvage or towage services.32 Section 4 Supplies to duty free Manufacturing 3 (Zero Rated) shops, provided that in (Industrial Inputs) case of clearance from Diplomatic Supplies duty free shops against and General Masses various baggage rules issued under the Customs Act, 1969, (IV of 1969), the supplies from duty free shops shall be treated as import for the purpose of levy of sales tax.33 Section 4 6 (A) supply of Locally Manufacturing 3 (Zero Rated) manufactured plant and (Industrial Inputs) machinery (EPZ) Export Processing Zones34 Section 4 1 (i) (b) a ship designed or Manufacturing 2 (Zero Rated) adapted for use for (Industrial Inputs) recreation or pleasure.35 Section 4 6 (A) (iv)Parts of machinery Manufacturing (Zero Rated) as specified in clauses (i), (Industrial Inputs) (ii) and (iii), identifiable for use in or with such machinery.36 Section 4 1 (ii) (a) an aircraft of Manufacturing 1 (Zero Rated) weight-less than 8000 (Industrial Inputs) kilograms; nor37 Section 4 6 (A) (iii) Mechanical and Manufacturing 1 (Zero Rated) electrical control and (Industrial Inputs) transmission gear, meant or adapted for use in conjunction with machinery specified in clause (i); and38 Section 4 6 (A) (ii) Apparatus, Manufacturing 0 (Zero Rated) appliances and equipment (Industrial Inputs) specifically meant or adapted for use in conjunction with the machinery specified in clause (i);39 Section 4 6 (A) (i) Plant and Manufacturing 0 (Zero Rated) machinery, operated by (Industrial Inputs) power of any description, as is used for the manufacture or production of goods by that manufacturer;======================================================================================================================Sub Total 17,562======================================================================================================================Less Adjustments 4,675======================================================================================================================Total 12,887======================================================================================================================Adjustments======================================================================================================================Tax Exemption under 5th Schedule (Zero rated Items)
S.No Legal Ref ITEM Beneficiary Tax Expenditure1 Section 4 Supplies of raw materials components Manufacturing 1,934 (Zero and goods for further] manufacture of (Industrial Rated) goods in the Export Processing Zones. Inputs) Exporters, General Masses2 Section 4 Raw materials, components, sub- Manufacturing 995 (Zero components and parts, if imported or (Industrial Rated) purchased locally for use in the Inputs) manufacturing of such plants and machinery as is chargeable to sales tax at the rate of zero percent, subject to the condition that the importer or purchaser of such goods holds a valid sales tax registration showing his registration category as "manufacturer"; and in case of import , all the conditions, restrictions, limitations and procedures as are imposed by notification under section 19 of the Customs Act,1969 (IV of 1969), shall apply3 Section 4 Supply to diplomats, diplomatic missions, Diplomatic 842 (Zero privileged persons and privileged Supplies Rated) organizations which are covered under various Acts, Orders, Rules, Regulations and Agreements passed by the Parliament or issued or agreed by the Government of Pakistan.4 Section 4 Pens, ball pens, markers and porous Educational 608 (Zero tipped pens (PCT heading 96.08) Items/General Rated) Masses5 Section 4 7 Supplies made to exporters under the Manufacturing 115 (Zero Duty and Tax Remission Rules, 2001 (Industrial Rated) subject to the observance of procedures, Inputs), restrictions and conditions prescribed Exporters therein.]6 Section 4 6 Supplies of such locally manufactured Manufacturing 80 (Zero plant and machinery to petroleum and (Industrial Rated) gas sector Exploration and Production Inputs) companies, their contractors and sub- contractors] as may be specified by the Federal Government, by notification in the official Gazette, subject to such conditions and restrictions as may be specified in such notification.]7 Section 4 6 (A) Supplies of locally manufactured Manufacturing 51 (Zero plant and machinery of the following (Industrial Rated) specifications, to manufacturers in the Inputs) Export Processing Zone, subject to the conditions, restrictions and procedure given below, namely:-8 Section 4 9 Goods exempted under section 13, if Manufacturing 42 (Zero exported by a manufacturer (Industrial Rated) Inputs), Exporters, General Masses9 Section 4 6 (A) supply of Locally manufactured plant Manufacturing 6 (Zero and machinery (EPZ) (Industrial Rated) Inputs), Exporters,10 Section 4 6 (A) supply of Locally manufactured plant Manufacturing 3 (Zero and machinery (EPZ) (Industrial Rated) Inputs) Exporters======================================================================================================================Total 4,675======================================================================================================================EXEMPTION ON IMPORTS UNDER 6TH SCHEDULE====================================================================================================================== Legal Intended EstimatesSr Reference ITEM Beneficiary In Million======================================================================================================================11 6th 12. machinery, equipment and other Manufacturing 58,507 Schedule- project related items including capital (Industrial Inputs) Table-3 goods, for setting up of hotels, power General Masses generation plants, water treatment plants and other infrastructure related projects located in an area of 30 km around the zero point12 6th 24 Edible oils and vegetable ghee, Manufacturing 57,204 Schedule- including cooking oil, on which Federal (Industrial Inputs) Table-1 Excise Duty is charged, levied and General Masses collected by a registered manufacturer or (Food Products) importer as if it were a tax payable under section 3 of the Act.13 6th 8.1 exemption of Sales Tax @ 0% on Manufacturing 27,900 Schedule- Machinery and equipment meant for (Industrial Inputs) Table-3 power transmission and grid stations General Masses including under construction projects. subject to condition given at S.No. 8 of Annexure of Table-III of 6th Schedule to the Sales Tax Act, 1990.14 6th 105 Raw materials for the basic Manufacturing 21,048 Schedule- manufacture of pharmaceutical active (Industrial Inputs), Table-1 ingredients and for manufacture of pharmaceutical products, provided that Health Sector in case of import, only such raw materials General Masses shall be entitled to exemption which are liable to customs duty not exceed15 6th 104 Substances registered as drugs Health Sector 19,675 Schedule- under the Drugs Act, 1976 (XXXI of Manufacturing Table-1 1976) and medicaments as are (Pharmaceutical classifiable under Chapter 30 of the First Industrial Inputs) Schedule to the Customs Act, 1969 (IV of General Masses 1969) except the following, even if medicated or medicinal in nature16 6th 6.1 exemption of Sales Tax @ 0% on Manufacturing 18,279 Schedule- Machinery, equipment and spares meant (Industrial Inputs) Table-3 for initial installation, balancing, modernization, replacement or expansion of projects for power generation through gas, coal, hydel, and oil including under construction projects.17 6th Pulses. General Masses, 15,605 Schedule- Food products Table-118 6th 24. Edible oils and vegetable ghee Manufacturing 12,478 Schedule- including cooking oil on which federal (Industrial Inputs) Table-1 excise duty is charged, levied and General Masses collected by a registered manufacturer or food products importer as if it were a tax payable under section 3 of the act.19 6th 133 Pesticides and their active Agriculture Sector 11,990 Schedule- ingredients registered by the department General Masses Table-1 of plant protection under the Agricultural Pesticides Ordinance, 1971 (II of 1971), stabilizers, emulsifiers and solvents namely:-Details given at the S.No. 133 of Table 1 of 6th Schedule20 6th 14A.7. (a) PV Modules. Manufacturing 8,281 Schedule- (Industrial Inputs) Table-3 General Masses21 6th Exemption of Sales Tax @ 0% on Coal Mining sector 3,927 Schedule- mining machinery, equipment, spares (Industrial Inputs) Table-3 including vehicles for site use i.e single or double cabin pick-ups and dump trucks imported for Thar Coal Field-subject to condition given at S.No. 4 of Annexure of Table-III22 6th Edible fruits excluding imported fruits General Masses 3,313 Schedule- (except fruits imported from Afghanistan) Food Items Table-1 whether fresh, frozen or otherwise preserved but excluding those bottled or canned.23 6th Live animals and live poultry respective Poultry General 3,208 Schedule- headings of chapter 1. Masses Table-124 6th Edible vegetables including roots and Manufacturing 3,160 Schedule- tubers, except ware potato and onions, (Industrial Inputs) Table-1 whether fresh, frozen or otherwise General Masses preserved (e.g. in cold storage) but excluding those bottled or canned.25 6th 132 Personal computers General Masses 2,920 Schedule- Table-126 6th 61 Respective Headings Manufacturing 2,814 Schedule- (Industrial Inputs) Table 1 General Masses27 6th 84 Preparations suitable for infants, put Manufacturing 2,738 Schedule- up for retail sale (Industrial Inputs) Table-1 General Masses28 6th 153 Steel billets, ingots, ship plates, bars Steel Sector 2,424 Schedule- and other long re-rolled profiles, on such (Industrial Inputs) Table-1 imports and supplies by the General Masses manufacturer on which federal excise duty is payable in sales tax mode29 6th 73A Milk and Cream , concentrated or Manufacturing 2,402 Schedule- containing added sugar or other (Industrial Inputs) Table-1 sweetening matter, excluding that sold in General Masses/ retail packing under a brand name Food Items30 6th 20 Seeds, fruit and spores of a kind used Agriculture Sector 2,335 Schedule- for sowing. (Industrial Inputs) Table-1 General Masses31 6th 120 Diagnostic kits or equipment, Health Sector 2,320 Schedule- namely:-HIV Kits , 4C Es Trionyx , 5C (Industrial Inputs) Table-1 Cell control normal , Bovine precision General Masses multi sera , Pregnancy test , DNA SSP DRB Generic IC , Reticulocyte count (control) Retic C Control , Kit for vitamin B12 estimation , Ferritin32 6th 5.1 exemption of Sales Tax @ 0% on Manufacturing 2,010 Schedule- Machinery, equipment and spares meant (Industrial Inputs) Table-3 for initial installation, balancing, General Masses modernization, replacement or expansion of projects for power generation through oil, gas, coal, wind and wave energy including under construction p33 6th 131 Laptop computers, notebooks General Masses 1,965 Schedule- whether or not incorporating multimedia Table-1 kit34 6th 141 Preparation for making animal feed Manufacturing 1,904 Schedule- (Industrial Inputs) Table-1 General Masses35 6th 32 Newsprint, newspapers, journals, General Masses 1,785 Schedule- periodicals, books but excluding Educational Items Table-1 directories.36 6th 19 Cereals and products of milling Manufacturing 1,556 Schedule- industry excluding the products of milling (Industrial Inputs) Table-1 industry, other than wheat and meslin General Masses, flour, as sold in retail packing bearing food products brands name or a trade mark.37 6th 7.1 exemption of Sales Tax @ 0% on Manufacturing 1,266 Schedule- Machinery, equipment and spares meant (Industrial Inputs) Table-3 for initial installation, balancing, General Masses modernization, replacement or expansion of projects for power generation through nuclear and renewable energy sources like solar, wind, micro-hydel38 6th 151 Imports of plant, machinery, FATA/PATA 1,264 Schedule- equipment for installation in tribal areas Table-1 and of industrial inputs by the industries located in the tribal areas, as defined in the Constitution of Islamic Republic of Pakistan subject to furnishing of security39 6th 117. 3006.9100, 118. 3926.9050, 119. Manufacturing 1,142 Schedule- 8539.3930, 120. 3822.0000, 121. (Industrial Inputs) Table-3 respective heading, 122. respective General Masses headings, 123. 8802.4000, 124. respective headings, 125. respective headings, 126. respective headings, 127. respective headings, 128. respective head40 6th 13. edible vegetables including roots and General Masses 955 Schedule- tubers, whether fresh, frozen or (Food Products) Table-1 otherwise preserved (e.g. in cold storage) but excluding potato onion those bottled or canned under respective PCT headings41 6th 124 Maintenance kit for use in trainer Manufacturing 937 Schedule- aircrafts of PCT headings 8802.2000 and (Industrial Inputs) Table-1 8802.300042 6th 102. Machinery. equipment and Manufacturing 741 Schedule- materials imported either for exclusive (Industrial Inputs) Table-1 use within the limits of EPZ or for making Exporters exports there from, and goods imported for warehousing purpose in EPZ, subject to the conditions that such machinery, equipment, materials43 6th 17 Ginger excluding those sold in retail General Masses 738 Schedule- packing bearing brand names and (Food Products) Table-1 trademarks.44 6th 85 Fat filled milk, excluding that sold in General Masses 738 Schedule- retail packing under a brand name or a (Food Products) Table-1 trademark45 6th 45 Dextrose and saline infusion giving Health Sector 719 Schedule- sets along with empty non-toxic bags for (Industrial Inputs) Table-1 infusion solution, Dextrose and saline General Masses infusion giving sets, Artificial parts of the body, Intra-Ocular lenses and Glucose testing equipment.46 6th 76 Whey, excluding that sold in retail General Masses 685 Schedule- packing under a brand name (Food Products) Table-147 6th 6.2 exemption of Sales Tax @ 0% on Manufacturing 569 Schedule- Construction machinery, equipment and (Industrial Inputs) Table-3 specialized vehicles, excluding Construction passenger vehicles, imported on Industry/General temporary basis as required for the Masses construction of project.-subject to condition given at S.No. 6 of Annexure of Table-I48 6th 12. live plants including bulbs roots and General Masses 562 Schedule- the like under respective PCT headings Table-149 6th 100 Construction materials to Gawadar Export Processing 547 Schedule- Export Processing Zone's investors and Zone Table-1 to Export Processing Zone Gawadar for development of Zone's infrastructure50 6th 14. pulses under respective PCT General Masses 536 Schedule- headings Table-151 6th 15A-I Parts and Components for Manufacturing 531 Schedule- manufacturing LED lights:-(i). Aluminum (Industrial Inputs) Table-3 Housing/Shell for LED (LED Light General Masses Fixture)52 6th 02. following machinery, equip., Health Sector 522 Schedule- apparatus, & medical, surgical, dental & (Industrial Inputs) Table-3 vet. furniture, materials, fixtures and General Masses fittings imported by hospitals and medical or diagnostic institutes:-medical equipment sr. (1) to (13) b. cardiology/cardiac surgery equipment53 6th 15 (ix). PV module, with or without, the Manufacturing 493 Schedule- related components including invertors (Industrial Inputs) Table-3 (off-grid/on grid/hybrid) with provision for General Masses direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT), charge controllers and solar batteries54 6th 1 Live Animals and live poultry Poultry Sector 477 Schedule- General Masses Table-155 6th 19 Plant and machinery, except the items Special Economic 383 Schedule- listed under Chapter 87 of the Pakistan Zones General Table-3 Customs Tariff, imported for setting up of Masses a Special Economic Zone (SEZ) by zone developers and for installation in that zone by zone enterprises, on one time basis as prescribe56 6th 156 exemption of Sales Tax @ 0% on 6. Manufacturing 383 Schedule- PV module, with or without, the related (Industrial Inputs) Table-3 components including invertors, charge General Masses controllers and batteries-Items for promotion of renewable energy technologies subject to certification by Alternative Energy Development57 6th 14.1.v. Inverters (off-grid/on-grid/hybrid Manufacturing 372 Schedule- with provision for direct connection/input (Industrial Inputs) Table-3 renewable energy source and with General Masses Maximum Power Point Tracking (MPPT).58 6th 103. import and supply thereof, up to the Manufacturing 353 Schedule- year 2020, of ships of gross tonnage of (Industrial Inputs) Table-1 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 entity59 6th 15A (iii). Constant Current Power Supply Manufacturing 342 Schedule- for of LED Lights (1-300W) (Industrial Inputs) Table-3 General Masses60 6th 46 Exemption of Sales Tax under Serial Manufacturing 321 Schedule- No 46 to 59 of 6th Schedule of Sales Tax, (Industrial Inputs) Table-1 Act where exemption of Customs Duty is claimed under chapter 99.61 6th 15A (ii). Metal Clad Printed Circuit Boards Manufacturing 321 Schedule- (MCPCB) for LED (Industrial Inputs) Table-3 General Masses62 6th 98 Pencils including colour pencils Manufacturing 291 Schedule- (Industrial Inputs) Table-1 General Masses63 6th 112 cardiology/cardiac surgery, Health Sector 260 Schedule- neurovascular, electrophysiology, endo- (Industrial Inputs) Table-1 surgery, endoscopy, oncology, urology, General Masses gynecology, disposables and other equipment as stated in serial 112 of Table I of 6th schedule.64 6th 14. Following items for use with solar Manufacturing 260 Schedule- energy, Solar Power Systems (Industrial Inputs) Table-3 General Masses65 6th 15 (xv). Invertors (off-grid/on grid/hybrid) Manufacturing 259 Schedule- with provision for direct connection/input (Industrial Inputs) Table-3 from renewable energy source and with General Masses Maximum Power Point Tracking (MPPT).66 6th 8.2 exemption of Sales Tax @ 5% on Manufacturing 229 Schedule- Construction machinery, equipment and (Industrial Inputs) Table-3 specialized vehicles, excluding General Masses passenger vehicles, imported on temporary basis as required for the construction of project.-subject to condition given at S. No. 8 of Annexure of Table-367 6th 60 Contraceptives and accessories Health Sector 225 Schedule- thereof. (Industrial Inputs) Table-1 General Masses68 6th 150 Plant and machinery excluding Manufacturing 206 Schedule- consumer durable goods and office (Industrial Inputs) Table-1 equipment as imported by greenfield industries, intending to manufacture taxable goods, during their construction and installation period subject to conditions noted below and issuance of exe69 6th 15B-CKD kits for single cylinder Agriculture Sector 206 Schedule- agriculture diesel engines (compression- (Industrial Inputs) Table-3 ignition internal combustion piston engines) of 3 to 36 HP.70 6th 130 Sodium Iron (Na Fe EDTA), and Manufacturing 203 Schedule- other premixes of vitamins, minerals and (Industrial Inputs) Table-1 micro-nutrients (food grade) and subject General Masses to conditions imposed for importation under the Customs Act, 196971 6th 153 steel billets, ingots, ship plates, bar Steel Sector, 202 Schedule- and other long re-rolled profiles, on such Manufacturing Table-1 imports and supplies by the (Industrial Inputs) manufacturer on which federal excise General Masses duty is payable in sales tax mode.72 6th 125 Spare parts for use in aircrafts, Manufacturing 198 Schedule- trainer aircrafts or simulators (Industrial Inputs) Table-173 6th 121 Blood bag CPDA-1 with blood Health Sector 194 Schedule- transfusion set pack in ammonium foil (Industrial Inputs) Table-1 with set General Masses74 6th 113 High Efficiency Irrigation Equipment. Agriculture Sector 193 Schedule- (If used for agriculture sector) 1) General Masses Table-1 Submersible pumps (up to 75 lbs. and head 150 meters) 2) Sprinklers including high and low pressure (center pivotal) system, conventional sprinkler equipment, water reel travel75 6th 135 Sunflower and canola hybrid seeds Agriculture Sector 185 Schedule- meant for sowing General Masses Table-176 6th 26 Fruit juices, whether fresh, frozen or Manufacturing 182 Schedule- otherwise preserved but excluding those (Industrial Inputs) Table-1 bottled, canned or packaged. General Masses (Food Products)77 6th 88 Erasers Manufacturing 176 Schedule- (Industrial Inputs) Table-1 General Masses78 6th 14A.4.b.i Parts for Solar Desalination Manufacturing 175 Schedule- System, (i). Solar photo voltaic panels. (Industrial Inputs) Table-3 General Masses79 6th 93 Bicycles Manufacturing 171 Schedule- (Industrial Inputs) Table-1 General Masses80 6th 146 Equipment imported by M/s China Mass Transit 171 Schedule- Railway Corporation to be furnished and System/General Table-1 installed in Lahore Orange Line Metro Masses Train Project subject to the conditions as contained in Sr No 146 of Table-1 of the 6th-Schedule (Sales Tax) Act 1990.81 6th 61.goods produced or manufactured in Exporter/Importers, 162 Schedule- and exported from Pakistan which are Manufacturing Table-1 subsequently imported in Pakistan within (Industrial Inputs) one year of their exportation provided General Masses conditions of section 22 of the customs act 1969 (iv of 1969) are complied with under respective PCT82 6th 102 Machinery, equipment and materials Exporters, 158 Schedule- imported either for exclusive use within Manufacturing Table-1 the limits of Export Processing Zone or (Industrial Inputs) for making exports therefrom, and goods General Masses imported for warehousing purpose in Export Processing Zone, subject to the conditions that such mac83 6th 14A.7.b.i Parts for PV Modules, (i). Solar Manufacturing 151 Schedule- cells. (Industrial Inputs) Table-3 General Masses84 6th 14A.15. Any other item approved by the Manufacturing 151 Schedule- Alternative Energy Development Board (Industrial Inputs) Table-3 (AEDB) and concurred to by the FBR. General Masses/ Alternative Energy Development85 6th 116. plant, machinery and equipment Manufacturers in 150 Schedule- imported for setting up industries in fata (Industrial Inputs) Table-1 subject to the same conditions and General Masses procedure as are applicable for import of such plant, machinery and equipment under the customs act, 1969 (iv of 1969). under respective head86 6th 94 Wheelchairs General Masses/ 149 Schedule- “differently-abled Table-1 persons87 6th 15A (iv). Lenses for LED lights Manufacturing 145 Schedule- (Industrial Inputs) Table-3 General Masses88 6th 134 Goods received as gift or donation General masses 145 Schedule- from a foreign government or and Governments Table-1 organization by the Federal or Provincial Governments or any public sector organization subject to recommendations of the Cabinet Division and concurrence by the Federal Board of Revenue89 6th 13 exemption of Sales Tax @ 0% on Manufacturing 135 Schedule- Effluent treatment plants-subject to (Industrial Inputs) Table-3 conditions. Subject to conditions given in General Masses the preamble of Table-3 of 6th Schedule to the Sales Tax Act, 1990.90 6th 14 (1) i Off grid/On-grid solar power Energy Sector 129 Schedule- system (with or without provision for Manufacturing Table-3 USB/charging port) comprising of : i. PV (Industrial Inputs) Module. General Masses91 6th 101 Raw and pickled hides and skins, Leather Sector 128 Schedule- wet blue hides and skins, finished Exporters Table-1 leather, and accessories, components Manufacturing and trimmings, if imported by a (Industrial Inputs) registered leather goods manufacturer, General Masses for the manufacture of goods wholly for export, provided that conditions92 6th 148 Imported construction materials and Road and 110 Schedule- goods imported by M/s China State Highways/ Table-1 Construction Engineering Corporation General Masses Limited (M/s CSCECL), whether or not locally manufactured, for construction of Karachi-Peshawar Motorway (Sukkur- Multan Section) subject to fulfilment93 6th 143 (i) Hearing aids (all types and kinds) Manufacturing 99 Schedule- (ii) Hearing assessment equipment; (a) (Industrial Inputs) Table-1 Audiometers (b) Tympanometer (c) ABR General Masses d) Oto Acoustic Omission Differently-abled persons94 6th 52. goods imported by or donated to Health Sector 91 Schedule- hospitals run by the federal government General Masses Table-1 or a provincial government and non-profit making educational and research institutions subject to the similar restrictions, limitations, conditions and procedures as are envisaged95 6th 3.1 exemption of Sales Tax @ 5% on General Masses 89 Schedule- Machinery, equipment, materials, capital Table-3 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 phase96 6th 3. fish and crustaceans excluding live (Food Products) 89 Schedule- fish whether or not fresh, frozen or General Masses Table-1 otherwise preserved97 6th 5.2 exemption of Sales Tax @ 0% on Construction 87 Schedule- Construction machinery, equipment and Industry General Table-3 specialized vehicles, excluding Masses passenger vehicles, imported on temporary basis as required for the construction of project.-subject to condition given at S.No. 5 of Annexure of Table-I98 6th 46. goods imported by various agencies Manufacturing 87 Schedule- of the united nations, diplomats, (Industrial Inputs) Table-1 diplomatic missions, privileged persons Diplomatic and privileged organizations which are Missions/General covered under various act and orders, Masses rules and regulations made thereunder and agreements by the federal government99 6th 14.1. iii. Batteries for specific utilization Manufacturing 83 Schedule- with the system (not exceeding 50 Ah in (Industrial Inputs) Table-3 case of portable system). General Masses100 6th 14A.4.b.v Inverters (off grid/on grid/ Energy Sector 72 Schedule- hybrid) with provision for direct Manufacturing Table-3 connection/input from renewable energy (Industrial Inputs) source and with Maximum Power Point General Masses Tracking (MPPT)101 6th 110 The following items with dedicated Energy Sector 71 Schedule- use of renewable source of energy like Manufacturing Table-1 solar and wind, subject to certification by (Industrial Inputs) the Alternative Energy Development General Masses/ Board (AEDB), Islamabad:-as listed at Alternative Energy sub-serial number (a) to (j). Development102 6th 97 Pens, ball pens, markers and porous Manufacturing 69 Schedule- tipped pen (Industrial Inputs) Table-1 General Masses/ Educational Items103 6th 20. seeds , fruit and spores of a kind used Manufacturing 66 Schedule- for sowing under respective PCT (Industrial Inputs) Table-1 headings General Masses104 6th 83 Meat and similar products of prepared (Food Products) 61 Schedule- frozen or preserved meat or meat offal of General Masses Table-1 all types including poultry meat and fish excluding those sold in retail packing under a brand name or a trademark105 6th Combined harvesters up to five years old Manufacturing 53 Schedule- (Industrial Inputs) Table-1 General Masses106 6th Exemption of Sales Tax on Machinery Manufacturing 53 Schedule- and equipment for initial installation, (Industrial Inputs) Table-3 balancing, modernization, replacement General Masses or expansion of desalination plants, cola- firing system, gas processing plants and oil and gas field prospecting. Subject to conditions given107 6th Goods Imported by or donated to Health Sector 50 Schedule- hospitals run by the Federal or Provincial General Masses Table-1 Government; and non-profit making educational and research institutions, limitations, conditions and procedures as are envisaged for the purpose of applying zero-rate of customs d108 6th import of all goods received, in the event General Masses 50 Schedule- of a natural disaster or other catastrophe, Table-1 as gifts and relief consignments, including goods imported for the president’s fund for afghan refugees, relief goods donated for afghan refugees, gifts for president’s f109 6th Machinery, equipment, raw materials, Manufacturing 48 Schedule- components and other capital goods for (Industrial Inputs) Table-3 use in building, fittings, repairing or refitting of ships, boats or floating structures imported by Karachi Shipyard and Engineering Works Limited.110 6th 149 Micro feeder equipment Manufacturing 47 Schedule- (Industrial Inputs) Table-1 General Masses111 6th 142 Promotional and advertising material Media 47 Schedule- including technical literature, pamphlets, Manufacturing Table-1 brochures and other giveaways of no (Industrial Inputs) commercial value, distributed free of cost General Masses by the exhibitors112 6th 115. plant, machinery and equipment Manufacturing 44 Schedule- imported for setting up fruit processing (Industrial Inputs) Table-1 and preservation units in Gilgit-Baltistan, General Masses Balochistan province and Malakand division subject to the same conditions and procedure as are applicable for import of such plant, ma113 6th 3.2 exemption of Sales Tax @ 0% on General Masses 42 Schedule- Construction machinery, equipment and Table-3 specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for mine construction or extraction phase-subject to condition given at S.No. 3 of Annexure114 6th 15 (v). Solar torches. (Industrial Inputs) 41 Schedule- General Masses Table-3115 6th 140 Bovine Semen General Masses 40 Schedule- Table-1116 6th 14. following items with dedicated use of Energy Sector 38 Schedule- renewable source of energy like solar, Manufacturing Table-3 wind, geothermal etc:-(1)solar home (Industrial Inputs) systems. (2)solar parabolic trough power General Masses plants. (3)solar dish sterling engine. (4)solar air conditioning system. (5)solar desalination system117 6th 15 (xiv). Sun Tracking Control System Manufacturing 38 Schedule- (Industrial Inputs) Table-3 General Masses118 6th 12 exemption of Sales Tax @ 0% on Energy Sector 38 Schedule- Machinery, equipment and other project Manufacturing Table-3 related items including capital goods, for (Industrial Inputs) setting up of hotels, power generation General Masses plants, water treatment plants and other infrastructure related projects located in an area of 30 km a119 6th 15 (xii). Energy saver lamps of varying Energy Sector 36 Schedule- voltages Manufacturing Table-3 (Industrial Inputs) General Masses120 6th 11 Eggs including eggs for hatching Poultry Sector 36 Schedule- Manufacturing Table-1 (Industrial Inputs) General Masses121 6th 15. edible fruits excluding imported fruits (Food Products) 35 Schedule- (except fruits imported from General Masses Table-1 Afghanistan) whether fresh, frozen or otherwise preserved but excluding those bottled or canned under respective PCT headings (0810.3000 omitted)122 6th 2 Meat of bovine animals, sheep and Manufacturing 34 Schedule- goat, excluding poultry and offal, whether (Industrial Inputs) Table-1 or not fresh, frozen or otherwise, General Masses preserved or packed123 6th 12 Live plants including bulbs, roots and Manufacturing 34 Schedule- the like. (Industrial Inputs) Table-1 General Masses124 6th 14A.5. Solar Thermal Power Plants with Manufacturing 33 Schedule- accessories. (Industrial Inputs) Table-3 General Masses125 6th 100A Materials and equipment (plant, Manufacturing 32 Schedule- machinery, equipment, appliances and (Industrial Inputs) Table-1 accessories) for construction and General Masses/ operation of Gwadar Port and Economic zones development of Free Zone for Gwadar Port as imported by or supplied to China Overseas Ports Holding Company Limited (COPHCL126 6th 108 Components or sub-components of Manufacturing 31 Schedule- energy saver lamps, namely:-(a) (Industrial Inputs) Table-1 Electronic Circuit (b) Plastic Caps General Masses Upper and Lower) (c) Base Caps B22 and E27 (d) Tungsten Filaments (e) Lead-in-wire (f) Fluorescent Powder (Tri Band Phospher) (g) Adhesive Additive127 6th 87 Writing, drawing and marking inks Manufacturing 30 Schedule- (Industrial Inputs) Table-1 General Masses128 6th 122 Urine drainage bags Health Sector 29 Schedule- Manufacturing Table-1 (Industrial Inputs) General Masses129 6th 15 (xi). Water pumps operating on solar Manufacturing 29 Schedule- energy along with solar pump controllers (Industrial Inputs) Table-3 General Masses130 6th 80 Processed cheese not greeted or (Food Products) 28 Schedule- powdered, excluding that sold in retail General Masses Table-1 packing under a brand name131 6th 130 Import and supply thereof, up to the Manufacturing 27 Schedule- year 2020, of ships and all floating crafts (Industrial Inputs) Table-1 including tugs, dredgers, survey vessels General Masses and other specialized crafts purchased or bare-boat chartered by a Pakistan entity and flying132 6th 33. currency notes, bank notes, shares, General Masses 27 Schedule- stocks and bonds under PCT 49.07 Table-1133 6th 14A.4.b (ii). Solar water pumps. Manufacturing 25 Schedule- (Industrial Inputs) Table-3 General Masses134 6th 15 (xiii). Energy Saving Tube Lights. Manufacturing 25 Schedule- (Industrial Inputs) Table-3 General Masses135 6th 106 Import of Halal edible offal of bovine General Masses 24 Schedule- animals. Food Items Table-1136 6th 114 Green House Farming and Other agriculture sector 24 Schedule- Green House Equipment consisting of Manufacturing Table-1 plastic covering and mulch film, anti- (Industrial Inputs) insect net and shade net (If used for General Masses agriculture sector) 1) Tunnel farming equipment. 2) Greenhouses prefabricated).137 6th 14A.7.b.iiTempered Glass. Manufacturing 24 Schedule- (Industrial Inputs) Table-3 General Masses138 6th 11. eggs including eggs for hatching Poultry Sector 24 Schedule- under respective headings Manufacturing Table-1 (Industrial Inputs) General Masses139 6th 129 Import of plant, machinery and Manufacturing 23 Schedule- production line equipment used for the (Industrial Inputs) Table-1 manufacturing of mobile phones by the General Masses local manufacturers of mobile phones duly certified by Pakistan Telecommunication Authority140 6th 127 Operational tools, machinery, Manufacturing 20 Schedule- equipment and furniture and fixtures on (Industrial Inputs) Table-1 one-time basis for setting up Greenfield General Masses airports by a company authorized by Aviation Division141 6th 109 Goods imported temporarily with a Manufacturing 18 Schedule- view to subsequent exportation, as (Industrial Inputs) Table-1 concurred by the Board, including General Masses passenger service item, provision and stores of Pakistani Airlines.142 6th 86 Colors in sets (Poster colors) Manufacturing 18 Schedule- (Industrial Inputs) Table-1 General Masses143 6th 14A.12.b.i Turbine with Generator/ Manufacturing 18 Schedule- Alternator. (Industrial Inputs) Table-3 General Masses144 6th 100D Machinery, equipment, materials Exporters 18 Schedule- and goods imported either for exclusive Manufacturing Table-1 use within the limits of Gwadar Free (Industrial Inputs) Zone, or for making exports therefrom, subject to the conditions that such machinery, equipment, materials and goods, are imported by investors of145 6th 76. WHEY 04.04 Food Products 16 Schedule- General Masses Table-1146 6th 11.7 exemption of Sales Tax @ 0% on 7) Manufacturing 16 Schedule- Machine and tool for stone work; sand (Industrial Inputs) Table-3 blasting machines; tungsten carbide General Masses tools; diamond tools & segments (all type & dimensions), hydraulic jacking machines, hydraulic manual press machines, air/hydro pillows, compress147 6th 96 Other drawing, marking out or Manufacturing 15 Schedule- mathematical calculating instruments (Industrial Inputs) Table-1 (geometry box) General Masses148 6th 79 Cheese, excluding that sold in retail Food Products 15 Schedule- packing under a brand name General Masses Table-1149 6th 14A.7.b.ix Ribbon for PV Modules (made Manufacturing 14 Schedule- of silver & Lead). (Industrial Inputs) Table-3 General Masses150 6th 137 Paper weighing 60 g/m2 for printing Manufacturing 14 Schedule- of Holy Quran imported by Federal or (Industrial Inputs) Table-1 Provincial Governments and Nashiran-e- General Masses Quran as per quota determined by IOCO151 6th 92 Sewing machines of the household General Masses 13 Schedule- type Table-1152 6th 123 Aircraft, whether imported or Manufacturing 13 Schedule- acquired on wet or dry lease (Industrial Inputs) Table-1 General Masses153 6th 14A.7.b.iii Aluminum frames. Manufacturing 12 Schedule- (Industrial Inputs) Table-3 General Masses154 6th 32. News Print, News Papers, Journals, Media General 12 Schedule- Periodicals Books But Excluding Masses Table-1 Directories Under Respective PCT Headings155 6th 07. (1) machinery, equip. & spares meant Manufacturing 12 Schedule- for initial installation, balancing, (Industrial Inputs) Table-3 modernization, replacement or General Masses expansion of projects for power gen. through nuclear & renewable energy sources like solar, wind, micro-hydel bio- energy, ocean, waste-to-energy156 6th 3 Fish and crustaceans excluding live Food Products 11 Schedule- fish whether or not fresh, frozen or General Masses Table-1 otherwise preserved or packed157 6th 51.impoted samples, subject to the same Manufacturing 11 Schedule- condition as are envisages for the (Industrial Inputs) Table-1 purposes of applying zero-rate of General Masses customs duty under customs act 1969 (iv of 1969) under respective PCT headings158 6th 14.1.ii. Charge controller. Manufacturing 11 Schedule- (Industrial Inputs) Table-3 General Masses159 6th 31 Holy Quran, complete or in parts, with General Masses 10 Schedule- or without translation; Quranic Verses========================================================================================================================================= Table-1 recorded on any analogue or digital media; other Holy books.160 6th 92. Sewing machines of the household Manufacturing 10 Schedule- (Industrial Inputs) Table-1 General Masses161 6th 16 Red chilies excluding those sold in Food Products 10 Schedule- retail packing bearing brand names and Manufacturing Table-1 trademarks. (Industrial Inputs) General Masses162 6th 112. Following cardiology/cardiac Health Sector 9 Schedule- surgery, neurovascular, General Masses Table-1 electrophysiology, Endosurgery, endoscopy, oncology, urology, gynecology, disposables & other equip:- a. angioplasty products. sr.1-6, b. angiography products. sr. 1-6, contrast media for angiography163 6th 18 Turmeric excluding those sold in retail Food Products 8 Schedule- packing bearing brand names and Manufacturing Table-1 trademarks. (Industrial Inputs) General Masses164 6th 01. Machinery and equipment for initial Manufacturing 8 Schedule- installation, balancing, modernization, (Industrial Inputs) Table-3 replacement or expansion of desalination General Masses plants, coal firing system, gas processing plants and oil and gas field prospecting under respective headings.165 6th 14A.2.b.i Parts for Solar Dish Sterling Manufacturing 7 Schedule- Engine. (i). Solar concentrating dish. (Industrial Inputs) Table-3 General Masses166 6th 2 meat of bovine animals sheep and General Masses 7 Schedule- goad, excluding poultry and offal, Table-1 whether or not fresh, frozen of otherwise preserved PCT 02.01 02.02 and 02.04167 6th 82. Frozen, prepared or preserved Food Products 7 Schedule- sausages and similar products of poultry Manufacturing Table-1 meat or meat offal (1601.0000). 83. Meat (Industrial Inputs) and similar products of prepared frozen General Masses or preserved meat or meat offal of all types including poultry meat and fish. (1602.3200,1602.3900,168 6th 14A.7.b.xi EVA (Ethyl Vinyl Acetate) Manufacturing 7 Schedule- Sheet (Chemical). (Industrial Inputs) Table-3 General Masses169 6th 138 Fish Feed Manufacturing 6 Schedule- (Industrial Inputs) Table-1 General Masses170 6th 18. turmeric excluding those sold in retail Food Products 5 Schedule- packing bearing brand names and Manufacturing Table-1 trademarks under respecting PCT (Industrial Inputs) heading General Masses171 6th 82 Frozen, prepared or preserved Food Products 5 Schedule- sausages and similar products of poultry Manufacturing Table-1 meat or meat offal excluding those sold (Industrial Inputs) in retail packing under a brand name or a General Masses trademark172 6th 14.8 exemption of Sales Tax @ 0% on 8. Manufacturing 5 Schedule- PV Modules.-PV Modules for dedicated (Industrial Inputs) Table-3 use of renewable source of energy like General Masses solar, wind, geothermal etc. subject to conditions given in the preamble of Table-3 of 6th Schedule to the Sales Tax Act, 1990.173 6th 14A. Junction box & Cover. Manufacturing 5 Schedule- (Industrial Inputs) Table-3 General Masses174 6th 89 Exercise books Manufacturing 5 Schedule- (Industrial Inputs) Table-1 General Masses175 6th 9.23 exemption of Sales Tax @ 0% on Manufacturing 5 Schedule- 23) Spares, accessories and reagents for (Industrial Inputs) Table-3 scientific equipment.-Machinery, General Masses equipment and other education and research related items imported by technical, training institutes, research institutes, schools, colleges and universities176 6th 11. Following machinery and equipment Manufacturing 4 Schedule- for marble, granite and gem stone (Industrial Inputs) Table-3 extraction and processing industries: sr. General Masses # (1) to (24) under respective headings and conditions.177 6th Pencil sharpeners Manufacturing 4 Schedule- (Industrial Inputs) Table-1 General Masses178 6th 14A.7.b.viii Sheet mixture of Paper and Manufacturing 4 Schedule- plastic (Industrial Inputs) Table-3 General Masses179 6th 45. dextrose and saline infusion giving Health Sector 4 Schedule- sets along with empty nontoxic bags for Manufacturing Table-1 infusion solution, dextrose and saline (Industrial Inputs) infusion giving sets, artificial parts of the General Masses body, intra-ocular lenses and glucose testing equipment under respective PCT headings180 6th 73 Milk Food Products 4 Schedule- Manufacturing Table-1 (Industrial Inputs) General Masses181 6th 15.i Following items for promotion of Manufacturing 4 Schedule- renewable energy technologies or for (Industrial Inputs) Table-3 conservation of energy:-(i). General Masses SMD/LED/LVD lights with or without ballast, fittings and fixtures.182 6th 09. Following machinery, equip. and Education Sector 4 Schedule- other education and research related General Masses Table-3 items imported by technical, training institutes, schools, colleges and universities:-sr.# (1) to (23) under respective headings.183 6th 59. artificial kidneys, eye cornea, General Masses 3 Schedule- hemodialysis machines, hemodialyzers, Health items Table-1 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 failure184 6th 15 (xvi). Charge controller/Current Manufacturing 3 Schedule- controller. Provided that exemption (Industrial Inputs) Table-3 under this serial shall be available with General Masses effect from 01.07.2016. (xvi). Charge controller/Current controller. Provided that exemption under this serial shall be available with effect185 6th 14A.4.b.iv Charge controllers. Manufacturing 3 Schedule- (Industrial Inputs) Table-3 General Masses186 6th 139 Fans for Dairy Farms General Masses 3 Schedule- Table-1187 6th 126 Machinery, equipment and tools for Manufacturing 2 Schedule- setting up maintenance, repair and (Industrial Inputs) Table-1 overhaul (MRO) workshop by MRO General Masses company recognized by Aviation Division188 6th 50. articles imported through post as Manufacturing 2 Schedule- unsolicited gifts, subject to the same (Industrial Inputs) Table-1 conditions as are envisaged for the General Masses purposes of applying zero-rate of customs duty under the customs art 1969 (iv of 1969) under respective PCT heading189 6th 2 exemption of Sales Tax @ 0% on Manufacturing 2 Schedule- Machinery, equipment, apparatus, and (Industrial Inputs) Table-3 medical, surgical, dental and veterinary General Masses furniture, materials, fixture and fittings imported by hospitals and medical or diagnostic institutes-subject to condition given at S.No. 2190 6th 15.4 exemption of Sales Tax @ 0% on 4. Manufacturing 2 Schedule- Solar torches.-Items for promotion of (Industrial Inputs) Table-3 renewable energy technologies. Subject General Masses to conditions given in the preamble of Table-3 of 6th Schedule to the Sales TAx Act, 1990.191 6th 14A.3.b.ii Cooling towers. Manufacturing 2 Schedule- (Industrial Inputs) Table-3 General Masses192 6th 16. red chilies excluding those sold in Manufacturing 2 Schedule- retail packing bearing brand names and (Industrial Inputs) Table-1 trademarks under respective PCT General Masses headings (Food Product)193 6th 73. MILK AND CREAM...04.01 AND General Masses ( 2 Schedule- 04.02 Food Product) Table-1194 6th 15. (vi). Lanterns and related instruments. Manufacturing 2 Schedule- (Industrial Inputs) Table-3 General Masses195 6th 14A.6.c.iv Electric Heater/Immersion Manufacturing 2 Schedule- Rod (one piece with one solar water (Industrial Inputs) Table-3 heater) General Masses196 6th 72 Uncooked poultry Meat whether or not (Food Product) 2 Schedule- fresh, frozen or otherwise, preserved or General Table-1 packed197 6th 15 (viii). LED Bulb/Tube lights. Manufacturing 2 Schedule- (Industrial Inputs) Table-3 General Masses198 6th 53. imports of all such gifts as are Manufacturing 2 Schedule- received and such equipment for fighting (Industrial Inputs) Table-1 tuberculosis, leprosy, aids and cancer General Masses and such equipment and apparatus for the rehabilitation of the deaf, the blind crippled or mentally retarded as are purchases or otherwise sec199 6th 71.goods and services purchased by Manufacturing 1 Schedule- non-resident entrepreneurs and traders (Industrial Inputs) Table-1 visiting Pakistan to participate in trade General Masses fairs and exhibitions subject to reciprocity and such conditions and restrictions as may be specified by the board under respective heading200 6th 115 Plant, machinery and equipment Manufacturers in 1 Schedule- imported for setting up fruit processing backward areas Table-1 and preservation units in Gilgit-Baltistan, Makran and Malakand Divisions subject to the same conditions and procedure as are applicable for import of such plant, machinery and equipment201 6th 14A.8.viii Aluminum and silver paste. Manufacturing 1 Schedule- (Industrial Inputs) Table-3 General Masses202 6th 78 Desi Ghee, excluding that sold in retail General Masses ( 1 Schedule- packing under a brand name Food Product) Table-1203 6th 93. bicycles (87.12). 94. wheelchairs Manufacturing 1 Schedule- (8713.1000 AND 8713.9000) (Industrial Inputs) Table-1 General Masses/ Differently-abled Persons204 6th 29 Table salt including iodized salt Manufacturing 1 Schedule- excluding salt sold in retail packing (Industrial Inputs) Table-1 bearing brand names and trademarks. General Masses ( Food Product)205 6th 84. preparations for infant use, put up for Manufacturing 1 Schedule- retail sale (1901.1000). 85. fat filled milk (Industrial Inputs) Table-1 (1901.9090) General Masses ( Food Product)206 6th 52-a goods supplied to hospitals run by Manufacturing 1 Schedule- the federal or provincial governments or (Industrial Inputs) Table-1 charitable operating hospitals of fifty General Masses beds or more respective headings207 6th 91 Energy saver lamps. As per Note 1 of Manufacturing 1 Schedule- the 6th Schedule to the Sales Tax Act, (Industrial Inputs) Table-1 1990, exemption shall be admissible on General Masses the basis of description of goods as mentioned in column (2) of the Schedule. PCT classification of headings is provided for ease of reference208 6th 75 Yogurt, excluding that sold in retail Manufacturing 1 Schedule- packing under a brand name (Industrial Inputs) Table-1 General Masses (Food Prodiucts)209 6th 14A.12.b.iv Pole/Tower. Manufacturing 1 Schedule- (Industrial Inputs) Table-3 General Masses210 6th 110. the following items with dedicated Manufacturing 1 Schedule- use of renewable sources of energy like (Industrial Inputs) Table-1 solar and wind, subject to certification by General Masses the alternative energy development board (aedb), Islamabad:-(a) solar pv panels (9405.1090), (b) lvd induction lamps, (c)SMD, LEDS211 6th 147 Goods supplied to German Diplomatic mission 1 Schedule- Development Agency (Deutsche Table-1 Gesellschaft für International Zusammenarbeit) GIZ212 6th 74 Flavored Milk, excluding that sold in Manufacturing 1 Schedule- retail packing under a brand name (Industrial Inputs) Table-1 General MassesSub Total 316,015Less 45% adjustment on account of value addition of Local Supplies 142,207Total 173,808=========================================================================================================================================EXEMPTION ON LOCAL SUPPLIES UNDER 6TH SCHEDULE=========================================================================================================================================Sr Legal Description Intended Estimates Reference Exemption Beneficiaries========================================================================================================================================= or Concession Rs. Million1 (Section 13) 1 Live Animals 2 [and live poultry] General Masses 15,119 6th Schedule Table I2 (Section 13) 1 Supply of cottonseed exclusively Agriculture Sector 828 6th Schedule meant for sowing purposes, subject Table II to such conditions as the General Masses 828 Board may specify3 (Section 13) 6th Schedule Table III 1 Machinery and equipment for Manufacturing initial installation, balancing, (Industrial Inputs) modernization, replacement or General Masses 260 expansion of desalination plants, coal firing system, gas processing plants and oil and gas field prospecting.4 (Section 13) 6th Schedule Table I 2 Meat of bovine animals, sheep Food Products and goat, excluding poultry and General Masses 1,032 offal, whether or not fresh, frozen or otherwise, preserved 2 [or packed]5 (Section 13) 2 Supply of locally produced crude Manufacturing 6th Schedule vegetable oil obtained from the locally produced (Industrial Table II seeds 1 [other than cotton seed], except cooking Inputs) oil, without having undergone any process except General Masses 1,905 the process of washing6 (Section 13) 2 Following machinery, equipment, apparatus 6th Schedule and medical, surgical, dental and veterinary furniture,Food Products Table III materials, fixtures and fittings imported by Manufacturing hospitals and medical or diagnostic institutes:- (Industrial Inputs)7 (Section 13) 3 Fish and crustaceans excluding live fish General Masses 281 6th Schedule whether or not fresh, frozen or otherwise preserved 4 Food Products Table I [or packed] General Masses 4858 (Section 13) Supplies made by cottage industry Manufacturing 6th Schedule (Industrial Inputs) Table II General Masses 609 (Section 13) 4 Raw material and intermediary goods manufactured Manufacturing 6th Schedule or produced, and services provided or rendered, (Industrial Inputs) Table II by a registered person, consumed in-house for the General Masses 159 manufacture of goods subject to sales tax.10 (Section 13) 4 Coal mining machinery, equipment, spares, including Mining Sector 6th Schedule vehicles for site use i.e. single or double cabin pick-Manufacturing Table III 1 [and dump trucks], imported for Thar Coal Field. (Industrial Inputs)11 (Section 13) 6 Supply of fixed assets against which input tax adjustment General Masses 5 6th Schedule is not available under a notification issued in terms of Table II clause (b) of subsection (1) of section 8 of the Sales Tax Act, 1990. Manufacturing (Industrial Inputs) General Masses 23612 (Section 13) 7 Breads prepared in tandoors and bakeries, vermicillieFood products 6th Schedule nans, chapattis, sheer mal, bun, rusk. Manufacturing Table II (Industrial Inputs) General Masses 4,27713 (Section 13) 8 Foodstuff cooked or prepared in-house Food products 6th Schedule and served in messes run Manufacturing 1 Table II on the basis of mutuality and industrial canteens (Industrial Inputs) for workers. General Masses14 (Section 13) 8 Machinery and equipment meant for power transmission and Manufacturing 6th Schedule grid stations including under construction projects. (Industrial Inputs) Table III General Masses 15215 (Section 13) 9 Foodstuff and other eatables prepared in the flight kitchens Food products 6th Schedule and supplied for consumption on-board in local flights.Manufacturing Table II (Industrial Inputs) General Masses 10316 (Section 13) 6th Schedule Table III 9 machinery, equipment and other education and research Education Sector related items imported by technical, training instituteGeneral Masses 4 research institutes, schools, colleges and universities:-17 (Section 13) 6th Schedule Table II 10 Agricultural produce of Pakistan, not subjected to any Agriculture Sector further process of manufacture. General Masses 1,75118 (Section 13) 6th Schedule Table I 11 Eggs including eggs for hatching Poultry Sector General Masses 1,44019 (Section 13) 6th Schedule Table II 11 Supply of ware potato and onions Food Sector General Masses 1720 (Section 13) 11 Following machinery and equipment Manufacturing 6th Schedule for marble, granite and gem stone (Industrial Inputs) Table III extraction and processing industries: General Masses 1021 (Section 13) 6th Schedule Table I 12 Live plants including bulbs, 1 [roots and the like.] General Masses 31622 (Section 13) 6th Schedule Table I 13 Edible vegetables including roots Food Products and tubers, 2 [except ware potato Manufacturing and onions], whether fresh, frozen (Industrial Inputs) or otherwise preserved (e.g. in cold General Masses 2,494 storage) but excluding those bottled 3 [or] canned 4 [***]23 (Section 13) 13 Effluent treatment plants Manufacturing 6th Schedule (Industrial Inputs) Table III General Masses 4024 (Section 13) 14 Pulses. Food Products 6th Schedule General Masses 8,505 TABLE I25 (Section 13) 14 items for use with solar Manufacturing 6th Schedule energy:-Solar Power Systems (Industrial Inputs) Table III General Masses 1,11626 (Section 13) 15 Edible fruits excluding Food Products 6th Schedule imported fruits (except fruits General Masses 665 Table I imported from Afghanistan) whether fresh, frozen or otherwise preserved but excluding those bottled 2 [or] canned 3 [***],27 (Section 13) 16 Red chillies excluding those Food Products 6th Schedule sold in retail packing bearing General Masses 65 Table I brand names and trademarks.28 (Section 13) 6th Schedule Table II 16 Raw cotton 1 [omitted] Manufacturing (Industrial Inputs) General Masses 5129 (Section 13) 17 Ginger excluding those sold Food Products 6th Schedule in retail packing bearing General Masses 1,604 Table I brand names and trademarks30 (Section 13) 17 Raw and pickled hides and Manufacturing 6th Schedule skins, wet blue hides and skins (Industrial Inputs) Table II General Masses 5731 (Section 13) 17 Machinery, equipment, raw Manufacturing 6th Schedule materials, components and other (Industrial Inputs) 2 Table III capital goods for use in building, fittings, repairing or refitting of ships, boats or floating structures imported by Karachi Shipyard and Engineering Works Limited.32 (Section 13) 18 Turmeric excluding those sold Food Products 6th Schedule in retail packing bearing brand General Masses 50 Table I names and trademarks.33 (Section 13) 18 Supplies made by manufacturers Manufacturing 6th Schedule of marble and granite having annual (Industrial Inputs) Table II turnover less than five million General Masses 2 rupees even if their annual utility bill is more than eight hundred thousand rupees34 (Section 13) 19 Cereals and products of milling Manufacturing 6th Schedule industry 4 [excluding the products (Industrial Inputs) Table I of milling industry, other than wheat General Masses/ and meslin flour, as sold in retail Food items 5,469 packing bearing brand name or a trademark].35 (Section 13) 6th Schedule Table II 19 Bricks Manufacturing (Industrial Inputs) General Masses 26436 (Section 13) 19 Plant and machinery, except the items Manufacturing 6th Schedule listed under Chapter 87 of the Pakistan (Industrial Table III Customs Tariff, imported for setting up Inputs/SEZs 93 of a Special Economic Zone (SEZ) by zone developers and for installation in that zone by zone enterprises, on one time basis as prescribed in the SEZ Act, 2012 and rules there under subject to such condition, limitations and restriction as a Federal Board of Revenue may impose from time to time.37 (Section 13) 20 Seeds, fruit and spores of a kind used Manufacturing 6th Schedule for sowing (Industrial Inputs) Table I General Masses 2,88838 (Section 13) 20 Crushed stone Manufacturing 6th Schedule (Industrial Inputs) Table II General Masses 8839 (Section 13) 21 Cinchona bark. Manufacturing 6th Schedule (Industrial Inputs) Table I General Masses 1,09640 (Section 13) 21 Poultry feed, cattle feed, General Masses 28,072 6th Schedule sunflower seed meal, rape seed meal Table-II and canola seed meal41 (Section 13) 22 Sugar beet Food Products 6th Schedule General Masses 6 Table I42 (Section 13) 22 Single cylinder agriculture diesel Agriculture 6th Schedule engines (compression ignition internal Sector General Table II combustion piston engines) of 3 to 36 HP. Masses 37043 (Section 13) 23 Match boxes Manufacturing 6th Schedule (Industrial Inputs) Table II General Masses 1,24144 (Section 13) 24 Edible oils and vegetable ghee, Food Products 6th Schedule including cooking oil, on which Federal General Masses 352 Table I Excise Duty is charged, levied and collected 4 [by a registered manufacturer or importer] as if it were a tax payable under section 3 of the Act. 5 [Explanation.-Exemption of this entry shall not be available 6 [on local supplies made by importers,] distributors, wholesalers or retailers.45 (Section 13) 24 LED or SMD lights and bulbs meant for Manufacturing 6th Schedule conservation of energy (Industrial Inputs) Table II General Masses 1,96046 (Section 13) 25 Cottonseed oil Manufacturing 6th Schedule (Industrial Inputs) Table II General Masses 55847 (Section 13) 26 Fruit juices, whether fresh, frozen or Food Products 6th Schedule otherwise preserved but excluding those General Masses 139 Table I bottled, canned or package48 (Section 13) Ice and waters excluding those for sale Manufacturing 6th Schedule under brand names or trademark (Industrial Inputs) General Masses 39749 (Section 13) 29 Table salt including iodized salt Manufacturing 6th Schedule excluding salt sold in retail packing (Industrial Inputs) Table I bearing brand names and trademarks General Masses 20350 (Section 13) 31 Holy Quran, complete or in parts, with General Masses 252 6th Schedule or without translation; Quranic Verses Table I recorded on any analogue or digital media; other Holy books51 (Section 13) 32 [Newsprint, newspapers], journals, Manufacturing 6th Schedule periodicals, books 6 [***] but excluding (Industrial Inputs) Table I directories. General Masses 1,54052 (Section 13) 33 Currency notes, bank notes, shares, General Masses 2,921 6th Schedule stocks and bonds. Table I53 (Section 13) 6th Schedule Table I 38 Monetary gold. General Masses 254 (Section 13) 45 Dextrose and saline infusion giving Health Sector 6th Schedule sets 2 [***] along with empty non-toxic Manufacturing Table I bags for infusion solution, Dextrose and (Industrial Inputs) saline infusion giving sets, Artificial General Masses 1,726 parts of the body, Intra-Ocular lenses and Glucose testing equipment.55 (Section 13) 46[Goods imported by various Manufacturing 63 6th Schedule agencies of the United Nations, (Industrial Inputs) Table I diplomats, diplomatic missions, UN and Diplomatic privileged persons and privileged Missions 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)56 (Section 13) 47 Import of articles of household Manufacturing 230 6th Schedule and personal effects including (Industrial Inputs) Table I vehicles and also the goods for General Masses donation to projects established57 (Section 13) 48 Goods imported or supplied Manufacturing 612 6th Schedule under grants-in-aid for which a (Industrial Inputs) Table I specific consent has been General Masses obtained from the 1 [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 agreement58 (Section 13) 49 Import of all goods received, in General Masses 5 6th Schedule the event of a natural disaster o Table I59 (Section 13) 50 Articles imported through post General Masses 4 6th Schedule as unsolicited gifts, subject to the Table I same conditions as are envisaged for the purposes of applying zero- rate of customs duty under the Customs Act, 1969. (IV of 1969)60 (Section 13) 51 Imported samples, subject to General Masses 66 6th Schedule the same conditions as are Table I envisaged for the purposes of applying zero-rate of customs duty under the Customs Act, 1969. (IV of 1969).61 (Section 13) 52 Goods imported by or donated Health Sector 2,163 6th Schedule to hospitals run by the Federal General Masses Table I Government or a Provincial Government; and non-profit62 (Section 13) 53 Import of all such gifts as are Health Sector 6 6th Schedule received, and such equipment for General Masses Table I 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 institution63 (Section 13) 54 Educational, scientific and Educational Sector 2 6th Schedule cultural material imported from a General Masses Table I 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).64 (Section 13) 55 Import of replacement goods Manufacturing 1 6th Schedule supplied free of cost in lieu of (Industrial Inputs) Table I defective goods imported, subject General Masses to similar conditions as are envisaged for the purposes of applying zero-rate of customs duty under the Customs Act, 1969.65 (Section 13) 57 Goods (including dry fruits Importers 35 6th Schedule imported from Afghanistan) Manufacturing Table I temporarily imported into Pakistan, (Industrial Inputs) meant for subsequent exportation General Masses charged to zero-rat66 (Section 13) 58 Import of ship stores, subject to Importers 1 6th Schedule the procedures, conditions and Manufacturing Table I restrictions as may be specified by (Industrial Inputs) the Collector of Customs in this General Masses 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 tax67 (Section 13) 59 Artificial kidneys, eye cornea, Health Sector 3,275 6th Schedule hemodialysis machines, Manufacturing Table I hemodialyzers, A.V. fistula (Industrial Inputs) needles, hemodialysis fluids and General Masses 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 systems68 (Section 13) Contraceptives and accessories Health Sector 758 6th Schedule thereof. Manufacturing Table I (Industrial Inputs) General Masses69 (Section 13) 61 Goods produced or Exporters 110 6th Schedule manufactured in and exported from Manufacturing Table I Pakistan which are subsequently (Industrial Inputs) imported in Pakistan within one General Masses year of their exportation, provided conditions of section 22 of the Customs Act, 1969 (IV of 1969), are complied with.70 (Section 13) 63 Personal wearing apparel and General Masses 14 6th Schedule bona fide baggage imported by Table overseas Pakistanis and tourists, if imported under various baggage rules and is exempt from Customs duties71 (Section 13) 71 Goods and services purchased Non-Residents 1 6th Schedule by non-resident entrepreneurs and Table I in trade fairs and exhibitions subject to reciprocity and such conditions and restrictions as may be specified by the Board.72 (Section 13) 72 Uncooked poultry Meat whether Food Products 1,282 6th Schedule or not fresh, frozen or otherwise, General Masses Table I preserved or packed73 (Section 13) 73 Milk Food Products 17,000 6th Schedule Manufacturing Table I (Industrial Inputs) General Masses74 (Section13) 74 Flavored milk, excluding that Food Products 66 6th Schedule sold in retail packing under a brand Manufacturing Table I name (Industrial Inputs) General Masses75 (Section 13) 75 Yogurt, excluding that sold in Food Products 67 6th Schedule retail packing under a brand name Manufacturing Table I (Industrial Inputs) General Masses76 (Section 13) 76 Whey, excluding that sold in Food Products 151 6th Schedule retail packing under a brand name Manufacturing Table I (Industrial Inputs) General Masses77 (Section 13) 77 Butter, excluding that sold in Food Products 195 6th Schedule retail packing under a brand name Manufacturing Table I (Industrial Inputs) General Masses78 (Section 13) 78 Desi ghee, excluding that sold Food Products 124 6th Schedule in retail packing under a brand Manufacturing Table I name (Industrial Inputs) General Masses79 (Section 13) 79 Cheese, excluding that sold in Food Products 222 6th Schedule retail packing under a brand name Manufacturing Table I (Industrial Inputs) General Masses80 (Section 13) 80 Processed cheese not grated or Food Products 547 6th Schedule powdered, excluding that sold in Manufacturing Table I retail packing under a brand name (Industrial Inputs) General Masses81 (Section 13) 81 Cotton seed Manufacturing 7,237 6th Schedule (Industrial Inputs) Table I General Masses82 (Section 13) 82 Frozen prepared or preserved Food Products 205 6th Schedule sausages and similar products of Manufacturing Table I poultry meat or meat offal 2 [, (Industrial Inputs) excluding those sold in retail General Masses packing under a brand name or a trademark]83 (Section 13) 83 Meat and similar products of Food Products 2,144 6th Schedule prepared frozen or preserved meat Manufacturing Table I or meat offal of all types including (Industrial Inputs) poultry, meat and fish 3 [,excluding General Masses those sold in retail packing under a brand name or a trademark]84 (Section 13) 84 preparation suitable for infants Food Products 2,701 6th Schedule Manufacturing Table I (Industrial Inputs) General Masses85 (Section 13) 85 Fat filled milk excluding that Food Products 1,966 6th Schedule sold in retail packing under a brand Manufacturing Table I name or a trademark] (Industrial Inputs) General Masses86 (Section 13) 86 Colors in sets (Poster colors) Manufacturing 122 6th Schedule (Industrial Inputs) Table I General Masses87 (Section 13) 87 Writing, drawing and making Manufacturing 54 6th Schedule inks (Industrial Inputs) Table I General Masses88 (Section 13) 88Erasers Manufacturing 28 6th Schedule (Industrial Inputs) Table I General Masses89 (Section 13) 89 Exercise books Manufacturing 60 6th Schedule (Industrial Inputs) Table I General Masses90 (Section 13) 90 Pencil sharpeners Manufacturing 27 6th Schedule (Industrial Inputs) Table I General Masses91 (Section 13) 91 Energy saver lamps Manufacturing 99 6th Schedule (Industrial Inputs) Table I General Masses92 (Section 13) 92Sewing machines of the Manufacturing 25 6th Schedule household type (Industrial Inputs) Table I General Masses93 (Section 13) 93 Bicycles Manufacturing 180 6th Schedule (Industrial Inputs) Table I General Masses94 (Section 13) 94 Wheelchairs Manufacturing 49 6th Schedule (Industrial Inputs) Table I General Masses95 (Section 13) 96 Other drawing, marking out or Manufacturing 4 6th Schedule mathematical calculating (Industrial Inputs) Table I instruments (geometry box) General Masses96 (Section 13) 97 Pens, ball pens, markers and Manufacturing 149 6th Schedule porous tipped pens (Industrial Inputs) Table I General Masses97 (Section 13) 98 Pencils including color pencils Manufacturing 322 6th Schedule (Industrial Inputs) Table I General Masses98 (Section 13) 99 Compost (non-commercial Manufacturing 149 6th Schedule fertilizer) produced and supplied (Industrial Inputs) Table I locally General Masses99 (Section 13) 100 Construction materials to 6 Manufacturing 16 6th Schedule [Gwadar] Export processing (Industrial Inputs) Table I Zone's investors and to Export General Masses Processing Zone 3100 (Section 13) 101 Raw and pickled hides and Manufacturing 5 6th Schedule skins, wet blue hides and skins, (Industrial Inputs) Table I finished leather, and General Masses101 (Section 13) 102 Machinery, equipment and Manufacturing 27 6th Schedule materials imported either for (Industrial Inputs) Table I exclusive use within the limits of General Masses 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.102 (Section 13) 103 Import and supply thereof, up Manufacturing 104 6th Schedule to the year, of ships (Industrial Inputs) Table I General Masses103 (Section 13) 104 Substances registered as Manufacturing 91,892 6th Schedule drugs under the Drugs Act, 1976 (Industrial Inputs) Table I (XXXI of 1976) and medicaments General Masses 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, n104 (Section 13) 105 Raw materials for the basic Health Sector 11,076 6th Schedule manufacture of pharmaceutical Manufacturing Table I active ingredients and for (Industrial Inputs) manufacture of pharmaceutical General Masses products, provided that in case of import, only such raw materials shall be entitled to exemption which are liable to customs duty not exceeding 1 [eleven] per cent ad valorem, either under the First Schedule 2 [or Fifth Schedule] to the Customs Act, 1969 (IV of 1969) or under a notification issued under section 19 thereof.105 (Section 13) 106 Import of Halal edible offal of General Masses 90 6th Schedule bovine animals Table I106 (Section 13) 107 Import and supply of iodized General Masses 268 6th Schedule salt bearing brand names and Table I trademarks whether or not sold in retail packing.107 (Section 13) 108 Components or sub- Manufacturing 7 6th Schedule components of energy saver (Industrial Inputs) Table I lamps, namely:-(a) Electronic General Masses 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 Pad108 (Section 13) 110 The following items with Manufacturing 1,762 6th Schedule dedicated use of renewable source (Industrial Inputs) Table I of energy like solar and wind, General Masses subject to certification by the Alternative Energy Alternative Energy Development Development Board (AEDB), Islamabad 1 [for the period ending on the 30th June, 2023]:-(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 Tor109 (Section 13) 112 Following cardiology/cardiac Health Sector 1,620 6th Schedule surgery, neurovascular, Manufacturing Table I electrophysiology, endo-surgery, (Industrial Inputs) General Masses110 (Section 13) 113 High Efficiency Irrigation Agriculture Sector 209 6th Schedule Equipment (If used for agriculture Manufacturing Table I sector) (1) Submersible pumps (up (Industrial Inputs to 75 lbs and head 150 meters) (2) General Masses Sprinklers including high and low pressure (center pivotal) system, conventional sprinkler equipment, water reel travelling sprinkler, drip or trickle irrigation equipment, mint irrigation sprinkler system (3) Air release valves, pressures gauges, water meters, back flow preventers, and automatic controllers111 (Section 13) 114 Green House Framing and Manufacturing 296 6th Schedule Other Green House Equipment (If (Industrial Inputs) Table I used for Agriculture Sector) (1) General Masses Tunnel farming112 (Section 13) 115 Plant, machinery and Manufacturers of 2 6th Schedule equipment imported for setting up backward areas Table I fruit processing and preservation (Industrial Inputs) units in Gilgit-Baltistan, General Masses Balochistan Province and Malakand Division up to the 30th June, 2019 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)113 (Section 13) 116 Plant, machinery and Manufacturer in 1 6th Schedule equipment imported for setting up FATA Table I industries in FATA up to 30th June Manufacturing 2019 subject to the same (Industrial Inputs) conditions and procedure as are General Masses applicable for import of such plant, machinery and equipment under the Customs Act, 1969 (IV of 1969)114 (Section 13) 117 Appliances and items required Manufacturing 2 6th Schedule for ostomy procedures as specified (Industrial Inputs) Table I in the Chapter 99 of the First General Masses Schedule to the Customs Act, 1969, subject to same conditions as specified therein]115 (Section 13) 120 Diagnostic kits or equipment, Health Sector 4,165 6th Schedule namely:-HIV Kits 4C Es Trionyx Manufacturing Table I 5C Cell control normal Bovine (Industrial Inputs) precision multi sera Pregnancy test General Masses DNA SSP DRB Generic IC Reticulocyte count (control) retic C Control Kit for vitamin B12 estimation Ferritin kit HEV (Hepatitis E virus) ID-DA Cell Urine Analysis Strips Albumin beg Cratinin116 (Section 13) 121 Blood Bag CPDA-1 with blood Manufacturing 253 6th Schedule transfusion set pack in aluminum (Industrial Inputs) Table I foil with set General Masses117 (Section 13) 122 Urine drainage bags Manufacturing 24 6th Schedule (Industrial Inputs) Table I General Masses118 (Section 13) 123 Aircraft, whether imported or Health Sector 2 6th Schedule acquired on wet or dry lease 1 [:] Manufacturing Table I Provided that in case of import or (Industrial Inputs) acquisition on wet or dry lease by Pakistan International Airlines Corporation, this exemption shall be available with effect from 19th March, 2015.119 (Section 13) 125 Spare parts for use in aircrafts, Manufacturing 5 6th Schedule trainer aircrafts or simulators (Industrial Inputs) Table I120 (Section 13) 126 Machinery, equipment and Manufacturing 2 6th Schedule tools for setting up maintenance, (Industrial Inputs) Table I repair and overhaul (MRO) workshop by MRO company recognized by Aviation Division121 (Section 13) 127 Operational tools, machinery, Manufacturing 26 6th Schedule equipment and furniture and (Industrial Inputs) Table I fixtures on one-time basis for General Masses setting up Greenfield airports by a company authorized by Aviation Division.122 (Section 13) 128 Aviation simulators imported Manufacturing 76 6th Schedule by airline company recognized by (Industrial Inputs) Table I Aviation Division123 (Section 13) 129 Import of plant, machinery and Manufacturing 28 6th Schedule (Industrial Inputs) Table I General Masses124 (Section 13) 130 Sodium Iron (Na Fe EDTA), Manufacturing 95 6th Schedule and other premixes of vitamins, (Industrial Inputs) Table I minerals and micro-nutrients (food General Masses grade) and subject to conditions imposed for importation under the Customs Act, 1969]125 (Section 13) 131 Laptop computers, notebooks Industrial Inputs) 2,154 6th Schedule whether or not incorporating General Masses Table I multimedia kit126 (Section 13) 132 Personal computers General Masses 1,116 6th Schedule Table I127 (Section 13) 133 Pesticides and their active Agriculture Sector 18,108 6th Schedule ingredients registered by the Manufacturing Table I Department of Plant Protection (Industrial Inputs) under the Agricultural Pesticides General Masses Ordinance, 1971 (II of 1971), stabilizers, emulsifiers and solvents128 (Section 13) 135 Sunflower and canola hybrid Manufacturing 11 6th Schedule (Industrial Inputs) Table I General Masses129 (Section 13) 136 Combined harvesters up to Manufacturing 15 6th Schedule five years old (Industrial Inputs) Table I General Masses130 (Section 13) 138Fish Feed Manufacturing 47 6th Schedule (Industrial Inputs) Table I General Masses131 (Section 13) 139 Fans for dairy farms Manufacturing 1 6th Schedule (Industrial Inputs) Table I General Masses132 (Section 13) 140 Bovine semen Manufacturing 51 6th Schedule (Industrial Inputs) Table I General Masses Manufacturing 1,232133 (Section 13) 141 Preparations for making 6th Schedule animal feed (Industrial Inputs) General Masses Table I Manufacturing 3134 (Section 13) 142 Promotional and advertising General Masses 6th Schedule material including technical (Industrial Inputs) Table I literature, pamphlets, brochures and other giveaways of no commercial value, distributed free Mass transit 1 of cost by the exhibitors135 (Section 13) 146 Equipment imported by M/s 6th Schedule China Railway Corporation to Schemes Table I furnished and installed in Orange General Masses 10 Line Metro Lahore136 (Section 13) Goods supplied to German 6th Schedule Development Agency (Deutsche 6 Table I Gesellschaft für Internationale Zusammenarbeit) GIZ137 (Section 13) 148 Imported construction Roads and 6th Schedule materials and goods imported by Highways Table I M/s China State Construction Engineering Corporation Limited (M/s CSCECL), whether or not locally manufactured, for construction of Karachi-Peshawar Motorway (Sukkur-Multan Section) subject to fulfilment of same conditions, limitations and restrictions as are specified under S. No. 145 of this table, provided that total incidence of exemptions of all duties and taxes in respect of construction materials and goods imported for the project shall not exceed ten thousand eight hundred ninety-eight million rupees including the benefit of exemption from duties and taxes availed before 30th June, 2018 under the provisions of the Sales Tax Act, 1990, the Customs Act, 1969, the Federal Excise Act, 2005 and the Inco138 (13) Section 150 Plant and machinery excluding Manufacturing 128 6th Schedule consumer durable goods and (Industrial Inputs) Table I office equipment as imported by General Masses greenfield industries, intending to manufacture taxable goods, during their construction and installation period subject to conditions noted below and issuance of exemption certificate by the Commissioner Inland Revenue having jurisdiction: Conditions: (a) the importer is registered under the Act on or after the first day of July, 2019; and (b) the industry is not established by splitting up or reconstruction or reconstitution of an undertaking already in existence or by transfer of machinery or plant from another industrial undertaking in Pakistan139 (13) Section 152 Supplies of electricity, as General Masses/ 4,238 6th Schedule made from the day of assent to the FATA Table I Constitution (Twenty-fifth Amendment) Act, 2018, till 30th June, 2023, to all residential and commercial consumers in tribal areas, and to such industries in the tribal areas which were set and started their industrial production before 31st May, 2018, but excluding steel and ghee or cooking oil industries140 (13) Section 153Steel billets, ingots, ship Steel Sector 29 6th Schedule plates, bars and other long re- Manufacturing Table I rolled profiles, on such imports and (Industrial Inputs) supplies by the manufacturer on General Masses which federal excise duty is payable in sales tax mode141 (13) Section 100AMaterials and equipment 2 Exporters 19 6th Schedule [ (plant, machinery, equipment, Table I appliances and accessories)] for construction and operation of 3 [Gwadar] Port and development of Free Zone for 3 [Gwadar] Port as imported by or supplied to China Overseas Ports Holding Company Limited (COPHCL) and its operating companies namely (i) China Overseas Ports Holding Company Pakistan (Private) Limited (ii) Gwadar International Terminal Limited, (iii) Gwadar Marin Services Limited and (iv) Gwadar Free Zone Company Limited, their contractors and sub- contractors; and Ship Bunker Oils bought and sold to the ships calling on/visiting 3 [Gwadar] Port, 3 [by the aforesaid operating companies] having Concession Agreement with the Gwadar Port Authority, for a period of forty year, subject to the following conditions and procedure,142 (13) Section 100A ((i)) This exemption shall be Construction/ 5 6th Schedule admissible only to China Overseas Highways Table I Ports Holding Company Limited (COPHCL) and its operating companies, their contractors and subcontractors which hold the Concession Agreement;143 (13) Section 100A ((ii)) Ministry of Ports and Manufacturing 11 6th Schedule Shipping shall certify in the (Industrial Inputs) Table I prescribed manner and format as Ports and Shipping per Annex-I that the imported materials and equipment are bonafide requirement for construction and operation of 1 [Gwadar] Port and development of Free Zone for 1 [Gwadar] Port. The authorized officer of that Ministry shall furnish all relevant information online to Pakistan Customs against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already computerized Collectorate or Customs station, where the 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 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, provided that this condition shall not apply to ship bunker oils; and144 (Section 13) 104 (a) filled infusion solution bags Health Sector 318 6th Schedule imported with or without infusion Manufacturing Table I given sets; (Industrial Inputs) General Masses145 (Section 13) 108 (a) Electronic Circuit Manufacturing 1 6th Schedule (Industrial Inputs) Table I General Masses146 (Section 13) 108 (b) Plastic Caps (upper and Manufacturing 3 6th Schedule lower) (Industrial Inputs) Table I General Masses147 (Section13) 108 (i) Capping Cement Manufacturing 1 6th Schedule (Industrial Inputs) General Masses Table I Manufacturing 379148 (Section13) 110 (a)Solar PV panels; 6th Schedule (Industrial Inputs) General Masses Table I Manufacturing 3149 (Section13) 110© SMD, LEDs, with or without General Masses 6th Schedule ballast, wi(Industrial Inputs) Manufacturing 284 Table I150 (Section13) 110 (g) PV modules along with General Masses 6th Schedule related comincluding (Industrial Inputs) Table I invertors, charge controllers and Manufacturing 4 batteries. General Masses151 (Section13) 110 (j) Invertors (off-grid/on grid/ 6th Schedule hybrid) witfor direct (Industrial Inputs) Table I connection/input from renewable Manufacturing 1 energy source and with Maximum Power Point Tracking (MPPT). General Masses152 (Section13) 112A (vi) Inflation Devices/Priority 6th Schedule Packs (Industrial Inputs) Table I153 (Section 13) 112A (xxv) Intracardiac Health Sector 2 6th Schedule Echocardiography Machine & Manufacturing Table I Catheters] (Industrial Inputs) General Masses154 (Section 13) 112J (ii) Cannulas Health Sector 1 6th Schedule Manufacturing Table I (Industrial Inputs) General Masses155 (Section 13) 112K (i) Cardiac Angiography Health Sector 16 6th Schedule Machine Manufacturing Table I (Industrial Inputs) General Masses156 (Section 13) 112K (ii) Echocardiography Health Sector 1 6th Schedule Machines Manufacturing Table I (Industrial Inputs) General Masses157 (Section 13) 113 (i) Submersible pumps (up to Manufacturing 14 6th Schedule 75 lbs and head 150 meters) (Industrial Inputs) Table I General Masses158 (Section 13) 114 (i) Tunnel farming equipment 1 Manufacturing 46 6th Schedule [consisting (Industrial Inputs) Table I of plastic covering and General Masses mulch film, anti-insect net and shade net]159 (Section 13) 114 (ii) Greenhouses Manufacturing 6 6th Schedule (prefabricated) (Industrial Inputs) Table I General Masses160 (Section 13) 14 (1) Off grid/On-grid solar power Manufacturing 44 6th Schedule system (with or without provision (Industrial Inputs) Table III for USB/charging port) comprising General Masses of :161 (Section 13) 14 (1) (i) PV Module. Manufacturing 114 6th Schedule (Industrial Inputs) Table III General Masses162 (Section 13) 14 (1) (iii) Batteries for specific Manufacturing 2 6th Schedule utilization with the system (not (Industrial Inputs) Table III exceeding 50 Ah in case of General Masses portable system).163 (Section 13) 14 (1) (v) Inverters (off-grid/on-grid/ Manufacturing 5 6th Schedule hybrid with provision for direct (Industrial Inputs) Table I connection/input renewable General Masses energy source and with Maximum Power Point Tracking (MPPT)164 (Section 13) 143 (i) Hearing aids (all types and Manufacturing 2 6th Schedule kinds) (Industrial Inputs) General Masses/ Table I Differently-abled persons 1165 (Section 13) 143 (i) (a) Audiometers Manufacturing 6th Schedule (Industrial Inputs) General Masses 233 Table I166 (Section 13) 14A systems and items for Manufacturing 6th Schedule dedicated use with renewable (Industrial Inputs) Table III source of energy like solar, wind, General Masses geothermal 1 [as imported on or 1 before the 30th June, 2023.]167 (Section 13) 14A (10) Solar chargers for Manufacturing 6th Schedule charging electronic devices (Industrial Inputs) 1 Table III General Masses168 (Section 13) 14A (4a) Solar Desalination Manufacturing 1 6th Schedule System (Industrial Inputs) Table III General Masses169 (Section 13) 14A (4b) (i) Solar photo voltaic Manufacturing 6th Schedule panels. (Industrial Inputs) Table III General Masses170 (Section 13) 14A (4b) (iv) Charge controllers. Manufacturing 8 6th Schedule (Industrial Inputs) Table III General Masses171 (Section 13) 14A (4b) (v) Inverters (off grid/on Manufacturing 1 6th Schedule grid/hybrid) with provision for (Industrial Inputs) Table III direct connection/input from General Masses renewable energy source and with Maximum Power Point Tracking (MPPT)172 (Section 13) 14A (7a) PV Modules. Manufacturing 85 6th Schedule (Industrial Inputs) Table III General Masses173 (Section 13) 14A (7b) Parts for PV Modules Manufacturing 8 6th Schedule (Industrial Inputs) Table I General Masses174 (Section 13) 14A (7b) (i) Solar cells. Manufacturing 10 6th Schedule (Industrial Inputs) Table III General Masses175 (Section 13) 14A (8) Solar Cell Manufacturing Manufacturing 2 6th Schedule Equipment. (Industrial Inputs) Table III General Masses176 (Section 13) 15 (a) Sprinkler Equipment Manufacturing 4 6th Schedule (Industrial Inputs) Table II General Masses/ Agriculture Sector177 (Section 13) 15 (b) Drip Equipment Manufacturing 13 6th Schedule (Industrial Inputs) Table II General Masses178 (Section 13) 15 (i) SMD/LED/LVD lights with or Manufacturing 84 6th Schedule without ballast, fittings and fixtures. (Industrial Inputs) Table III General Masses179 (Section 13) 15 (ii) SMD/LED/LVD lights, with or Manufacturing 6 6th Schedule without ballast, PV module, fitting (Industrial Inputs) Table III and fixtures General Masses180 (Section 13) 15 (iii) Tubular Day lighting Device. Manufacturing 7 6th Schedule (Industrial Inputs) Table III General Masses181 (Section 13) 15 (ix) PV module, with or without, Manufacturing 234 6th Schedule the related components including (Industrial Inputs) Table III invertors (off-grid/on grid/hybrid) General Masses with provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT), charge controllers and solar batteries182 (Section 13) 15 (v) Solar torches. Manufacturing 3 6th Schedule (Industrial Inputs) Table III General Masses 68183 (Section 13) 15 (viii) LED Bulb/Tube lights. Manufacturing 6th Schedule (Industrial Inputs) Table I General Masses 6184 (Section 13) 15 (x) Light emitting diodes (light Manufacturing 6th Schedule (Industrial Inputs) emitting in different coGeneral Masses 19 Table I Manufacturing185 (Section 13) 15 (xi) Water pumps operating on 6th Schedule solar energy along with solar pump (Industrial Inputs) General Masses 8Table I controllers Manufacturing186 (Section 13) 15 (xv) Invertors (off-grid/on General Masses 6th Schedule grid/hybrid) with provision for direct (Industrial Inputs) Table III connection/input from renewable 28 energy source and with Maximum Importers Power Point Tracking (MPPT).187 (Section 13) 150 (a) the importer is registered (Industrial Inputs) 6th Schedule under the Act on or after the first Manufacturing General Masses Table I day of July, 2019;188 (Section 13) 151 (a) Supplies; and Manufacturing 1,233 6th Schedule (Industrial Inputs) Table I General Masses189 (Section 13) 151 (b) imports of plant, machinery, FATA General 34 6th Schedule equipment for installation in tribal Masses Table I areas and of industrial inputs by the industries located in the tribal areas, as defined in the Constitution of Islamic Republic of Pakistan, as made till 30th June, 2023, to which the provisions of the Act or the notifications issued thereunder, would have not applied had Article 247 of the Constitution not been omitted under the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018):190 (Section 13) 15A (i) Housing/shell. Shell cover Manufacturing 6 6th Schedule and base cap for all kinds of LED (Industrial Inputs) Table III lights and bulbs General Masses191 (Section 13) 15A (ii) Bare and stuffed Metal Clad Manufacturing 5 6th Schedule Printed Circuit Boards (MCPCB) (Industrial Inputs) Table III for LED General Masses192 (Section 13) 15A (iii) Constant Current Power Manufacturing 10 6th Schedule Supply for of LED Lights and Bulbs (Industrial Inputs) Table III General Masses193 (Section 13) 18 (iii) Microprocessor/Controllers Manufacturing 3 6th Schedule (Industrial Inputs) Table III General Masses194 (Section 13) 18 (xii) LCD/LED Screen Manufacturing 1 6th Schedule (Industrial Inputs) Table III General Masses195 (Section 13) 29C Glass bangles Manufacturing 1 6th Schedule (Industrial Inputs) Table I General Masses196 (Section 13) 2A Medical Equipment. Manufacturing 8 6th Schedule (Industrial Inputs) Table III General Masses197 (Section 13) 2A (ii) Medical surgical dental or Manufacturing 10 6th Schedule veterinary furniture (Industrial Inputs) Table III General Masses198 (Section 13) 2A (iii) Operating Table. Manufacturing 1 6th Schedule (Industrial Inputs) Table III General Masses199 (Section 13) 2A (vii) Cooling Cabinet. Manufacturing 1 6th Schedule (Industrial Inputs) Table III General Masses200 (Section 13) 2A (viii) Refrigerated Liquid Bath. Manufacturing 2 6th Schedule (Industrial Inputs) Table III General Masses201 (Section 13) 2B Cardiology/Cardiac Surgery Health Sector 20 6th Schedule Equipment Manufacturing Table III (Industrial Inputs) General Masses202 (Section 13) 2B (iii) Intravenous cannula i.v. Health Sector 12 6th Schedule catheter. Manufacturing Table III (Industrial Inputs) General Masses203 (Section 13) 2C DisposabHealth Sector 14 6th Schedule Manufacturing Table III (Industrial Inputs) General Masses204 (Section 13) 2D (ii) Fixtures & fittings for Manufacturing 2 6th Schedule hospitals (Industrial Inputs) Table III General Masses205 (Section 13) 3 (i) Machinery, equipment, Manufacturing 7 6th Schedule materials, capital goods, (Industrial Inputs) Table III specialized vehicles (4x4 non- General Masses luxury) i.e. single or double cabin pickups, accessories, spares, chemicals and consumables meant for mine construction phase or extraction phase.206 (Section 13) 3 (ii) Construction machinery, Manufacturing 28 6th Schedule equipment and specialized (Industrial Inputs) Table III vehicles, excluding passenger General Masses vehicles, imported on temporary basis as required for mine construction or extraction phase207 (Section 13) 52A Goods 2 [excluding electricity Manufacturing 4,311 6th Schedule and natural gas] supplied to (Industrial Inputs) Table I hospitals run by the Federal or General Masses Provincial Governments or charitable operating hospitals of fifty beds or more or the teaching hospitals of statutory universities of two hundred or more beds.208 (Section 13) 7 (i) Machinery, equipment and Manufacturing 134 6th Schedule spares meant for initial installation, (Industrial Inputs) Table III balancing, modernization, General Masses replacement or expansion of projects for power generation through nuclear and renewable energy sources like solar, wind, micro-hydel bio-energy, ocean, and waste-to-energy and hydrogen cell. 1 [This exemption in relation to renewable energy shall remain in force up to the 30th June, 2023.]209 (Section 13) 7 (ii) Construction machinery, Construction Sector 2 6th Schedule equipment and specialized Manufacturing Table I vehicles, excluding passenger (Industrial Inputs) vehicles, imported on temporary General Masses basis as required for the construction of project.210 (Section 13) 73A Milk and cream, concentrated Food Products 1,404 6th Schedule or containing added sugar or other General Masses Table I sweetening matter, excluding that sold in retail packing under a brand name211 (Section 13) 8 (i) Machinery and equipment Manufacturing 35 6th Schedule meant for power transmission and (Industrial Inputs) Table III grid stations including under General Masses construction projects.212 (Section 13) 8 (i) (b) apparatus, appliances, Manufacturing 11 6th Schedule metering and testing apparatus, (Industrial Inputs) Table III mechanical and electrical control, General Masses 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; and213 (Section 13) 9 (xxii) Parts and accessories of Manufacturing 26 6th Schedule automatic regulating or controlling (Industrial Inputs) Table III instruments and apparatus General MassesSub Total 283,880Less 45% adjustment on account of value127,746Total 156,134=========================================================================================================================================Exemption Under 8th Scheduled at Reduced Rates============================================================================================================================================Reduced Rate of 1%============================================================================================================================================Sr Legal Description Intended Estimate Rates Reference Exemption or Concession Beneficiary Rs. Million1 Clause (aa) 62 Gold, in unworked Manufacturing 7 1 of sub-Section condition (Industrial Inputs) 2 of Section 3 General Masses2 Clause (aa) 63 Articles of jewelry, or Manufacturing 324 1 of sub-Section parts thereof, of precious (Industrial Inputs) 2 of Section 3 metal or of metal clad with General Masses precious metal.Sub Total 330============================================================================================================================================Reduced Rate of 2%============================================================================================================================================ Legal Description Intended EstimateSr Rates Reference Exemption or Concession Beneficiary Rs. Million3 Clause (aa) 52 Fertilizers (all types) Manufacturing 73,968 2 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses4 Clause (aa) 52 Fertilizers (All types) 16,320 2 of sub-Section 2 of Section 3============================================================================================================================================Sub Total 90,288Reduced Rate of 5% Legal Description Intended EstimateSr Rates Reference Exemption or Concession Beneficiary Rs.Million5 Clause (aa) 29 (xvii) Harvesting Agriculture 281 5 of sub-Section threshing and storage Sector 2 of Section 3 equipment: Combined harvesters6 Clause (aa) 23 second hand and worn General Masses 4,072 5 of sub-Section clothing or footwear 2 of Section 37 Clause (aa) 17 Re-importation of Exporters 156 5 of sub-Section foreign origin goods which 2 of Section 3 were temporarily exported out of Pakistan subject to similar conditions as are envisaged for the purposes of customs duty under the Customs Act,1969, and taxable value shall be the value determined under PCT h8 Clause (aa) 26 (xii)Ditcher Manufacturing 1 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses9 Clause (aa) 28 (iv)Boom or field Manufacturing 2 5 of sub-Section sprayers (Industrial Inputs) 2 of Section 3 General Masses10 Clause (aa) 26 (xix)Land leveler Manufacturing 39 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses11 Clause (aa) 26 (vii)Border disc Manufacturing 7 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses12 Clause (aa) 27 (ii) Seeding or planting Agriculture Sector 1 5 of sub-Section equipment: Cotton or 2 of Section 3 maize planter with fertilizer attachment13 Clause (aa) 27 (vii) Seeding or planting Agriculture Sector 1 5 of sub-Section equipment: Sugarcane 2 of Section 3 planter14 Clause (aa) 29 (iii)Maize or ground nut Manufacturing 3 5 of sub-Section thresher or Sheller (Industrial Inputs) 2 of Section 3 General Masses15 Clause (aa) 28 (v)Self-propelled Manufacturing 3 5 of sub-Section sprayers (Industrial Inputs) 2 of Section 3 General Masses16 Clause (aa) 26 (xx) Laser land leveler General Masses 14 5 of sub-Section comprising of laser 2 of Section 3 transmitter, laser receiver, control box, rigid mast pack, with or without scrapper under respective heading17 Clause (aa) 30 (ii) Postharvest handling General Masses 6 5 of sub-Section and processing & 2 of Section 3 miscellaneous machinery: Fodder and feed cube maker equipment18 Clause (aa) 29 (x) Harvesting threshing Agriculture 33 5 of sub-Section and storage equipment: Sector 2 of Section 3 Wheat or rice reaper19 Clause (aa) 8 (Chapter 84 and 85) If Food Products 9 5 of sub-Section imported by registered General Masses 2 of Section 3 manufacturer who is member of Pakistan Dairy Association 1. Milk chillers. 2. Tubular heat exchanger (for pasteurization). 3. Milk processing plant, milk spray drying plant, Milk UHT plant. 4. Milk filters 5.20 Clause (aa) 27 (vi) Seeding or planting Agriculture 8 5 of sub-Section equipment: Canola or Sector 2 of Section 3 sunflower drill21 Clause (aa) 67LNG imported for Manufacturing 2,092 5 of sub-Section servicing CNG sector and (Industrial Inputs) 2 of Section 3 local supplies thereof General Masses23 Clause (aa) 29 (vii)Sunflower thresher Manufacturing 3 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses24 Clause (aa) 26 (xvii)K.R.Karundi Manufacturing 3 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses25 Clause (aa) 30 (ii)Fodder and feed cube Manufacturing 2 5 of sub-Section maker equipment (Industrial Inputs) 2 of Section 3 General Masses26 Clause (aa) 29 (xiii)Post hole digger Manufacturing 1 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses27 Clause (aa) 29 (v)Groundnut digger Manufacturing 1 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses22 Clause (aa) 29 (v) Harvesting threshing Agriculture 1 5 of sub-Section and storage equipment: Sector 2 of Section 3 Potato digger or harvester28 Clause (aa) 44 Sales tax @ 5% of Manufacturing 5,465 5 of sub-Section Phosphoric Acid (Industrial Inputs) 2 of Section 3 General Masses29 Clause (aa) 9Capital goods otherwise Manufacturing 3,659 5 of sub-Section not exempted, for (Industrial Inputs) 2 of Section 3 Transmission Line General Masses Projects.30 Clause (aa) Natural gas Manufacturing 2,796 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses31 Clause (aa) 29 (ix) Harvesting threshing Agriculture 8 5 of sub-Section and storage equipment: Sector 2 of Section 3 Fodder rake32 Clause (aa) 4 Oil Seeds meant for Agriculture 14 5 of sub-Section sowing subject to Sector 2 of Section 3 conditions against S.No. 4 of Table-I of 8th Schedule to the Sales Tax Act, 1990.33 Clause (aa) 25 Agricultural tractors Manufacturing 4,285 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses34 Clause (aa) 30 (i) Postharvest handling Agriculture 17 5 of sub-Section and processing & Sector 2 of Section 3 miscellaneous machinery: Vegetables and fruits cleaning and sorting or grading equipment35 Clause (aa) 28 (i) Irrigation drainage Agriculture 4 5 of sub-Section and agrochemical Sector 2 of Section 3 application equipment: Tube wells filters or strainers36 Clause (aa) 2 Cool chain machinery Mining Sector 111 5 of sub-Section and equipment.-subject to 2 of Section 3 conditions. Subject to conditions given in preamble of Table-2 of 8th Schedule to the Sales Tax Act, 1990.37 Clause (aa) 27 (v) Seeding or planting Agriculture 21 5 of sub-Section equipment: Rice Sector 2 of Section 3 transplanting38 Clause (aa) 25 Agricultural Tractors HS Agriculture 412 5 of sub-Section code 8701.9220 & Sector 2 of Section 3 8701.9320 are added in the system in pursuance of letter C>No. 4/24- STB/2017 dated 21.07.201739 Clause (aa) 30 (i)Vegetables and fruits Manufacturing 14 5 of sub-Section cleaning and sorting or (Industrial Inputs) 2 of Section 3 grading equipment General Masses40 Clause (aa) 29 (viii) Harvesting Agriculture 21 5 of sub-Section threshing and storage Sector 2 of Section 3 equipment: Straw balers41 Clause (aa) 26 (ix) Disc harrow Agriculture 2 5 of sub-Section Sector 2 of Section 342 Clause (aa) 26 (xiv) Rotary tiller Agriculture 54 5 of sub-Section Sector 2 of Section 343 Clause (aa) 28 (i)Tube wells filters or Manufacturing 5 5 of sub-Section strainers (Industrial Inputs) 2 of Section 3 General Masses44 Clause (aa) 26 (xvi)Soil-scrapper Manufacturing 5 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses45 Clause (aa) 29 (xi) Harvesting threshing Agriculture 42 5 of sub-Section and storage equipment: Sector 2 of Section 3 Chaff or fodder cutter46 Clause (aa) 4.1 Machinery, equipment, General Masses 3 5 of sub-Section materials, capital goods, 2 of Section 3 specialized vehicles (4x4 non luxury) i.e single or double cabin pickups, accessories, spares, chemicals and consumables meant for mineral exploration phase.- subject to conditions given against S.No. 4 of47 Clause (aa) 29 (xviii)Tractor mounted Manufacturing 26 5 of sub-Section trancher (Industrial Inputs) 2 of Section 3 General Masses48 Clause (aa) 29 (xvii)Reaping machines Manufacturing 95 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses49 Clause (aa) 29 (xii)Chaff or fodder cutter Manufacturing 6 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses50 Clause (aa) 28 (ii) Irrigation drainage Agriculture 108 5 of sub-Section and agrochemical Sector 2 of Section 3 application equipment: Knapsack sprayers51 Clause (aa) 28 (vi) Irrigation drainage Agriculture 11 5 of sub-Section and agrochemical Sector 2 of Section 3 application equipment: Orchard sprayer52 Clause (aa) 27 (vii)Sugarcane planter Manufacturing 10 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses53 Clause (aa) 28 (v) Irrigation drainage Agriculture 2 5 of sub-Section and agrochemical Sector 2 of Section 3 application equipment: Self-propelled sprayers54 Clause (aa) 20 Plant. Machinery and General Masses 174 5 of sub-Section equipment used in 2 of Section 3 production of bio-diesel subject to conditions mentioned against S.no. 20 of Table I of 8th Schedule to the Sales Tax Act, 199055 Clause (aa) 4 Oilseeds meant for Manufacturing 9 5 of sub-Section sowing. (Industrial Inputs) 2 of Section 3 General Masses56 Clause (aa) 2 Cool chain machinery Manufacturing 29 5 of sub-Section and equipment. (Industrial Inputs) 2 of Section 3 General Masses57 Clause (aa) 26 (x)Bar harrow Manufacturing 1 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses58 Clause (aa) 29 (ix)Straw balers Manufacturing 3 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses59 Clause (aa) 26 Incinerators of disposal Manufacturing 4 5 of sub-Section of waste management, (Industrial Inputs) 2 of Section 3 motorized sweepers and General Masses snow ploughs60 Clause (aa) 28 (iv) Irrigation drainage Agriculture 2 5 of sub-Section and agrochemical Sector 2 of Section 3 application equipment: Boom or field sprayers61 Clause (aa) 29 (ii)Wheat thresher Manufacturing 10 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses62 Clause (aa) 29 (i)Harvesting, threshing Manufacturing 59 5 of sub-Section and storage equipment (Industrial Inputs) 2 of Section 3 General Masses63 Clause (aa) 20 Plant, machinery, 2 [and Manufacturing 8 5 of sub-Section equipment] used in (Industrial Inputs) 2 of Section 3 production of biodiesel General Masses64 Clause (aa) 29 (viii)Post hole digger Manufacturing 5 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses65 Clause (aa) 26 (i) Rotavator Manufacturing 37 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses66 Clause (aa) 26 (ii) Cultivator Agriculture 1 5 of sub-Section Sector 2 of Section 367 Clause (aa) 29 (vii) Harvesting threshing Agriculture 1 5 of sub-Section and storage equipment: Sector 2 of Section 3 Post hole digger68 Clause (aa) 27 (i)Seed-cum-fertilizer Manufacturing 13 5 of sub-Section drill (wheat, rice barley, etc (Industrial Inputs) 2 of Section 3 General Masses69 Clause (aa) 27 (v)Rice trans planter Manufacturing 8 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses70 Clause (aa) 29 (xi)Wheat or rice reaper Manufacturing 13 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses71 Clause (aa) 23 Secondhand and worn Manufacturing 2,542 5 of sub-Section clothing or footwear (Industrial Inputs) 2 of Section 3 General Masses72 Clause (aa) 53 The following General Masses 2 5 of sub-Section cinematographic 2 of Section 3 equipment imported during the period commencing on the 1st day of July, 2018 and ending on the 30th day of June, 2023. (i) Projector (ii) Parts and accessories for projector (iii) Other instruments and apparatus for cinema (i73 Clause (aa) 26 (xiv)Rotary tiller Manufacturing 29 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses74 Clause (aa) 29 (xviii) Harvesting Agriculture 1 5 of sub-Section threshing and storage Sector 2 of Section 3 equipment: Pruner/shears75 Clause (aa) 29 (xvi)Tractor trolley or Manufacturing 4 5 of sub-Section forage wagon (Industrial Inputs) 2 of Section 3 General Masses76 Clause (aa) 19 Waste paper Manufacturing 192 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses77 Clause (aa) 29 (x)Fodder rake Manufacturing 16 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses78 Clause (aa) 26 (xiii)Land leveler or land Manufacturing 2 5 of sub-Section planer (Industrial Inputs) 2 of Section 3 General Masses79 Clause (aa) 28 (ii)Knapsack sprayers Manufacturing 7 5 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses80 Clause (aa) 28 (vi)Orchard sprayer Manufacturing 1 5 of sub-Section (Industrial Inputs) 2 of Section 3 General MassesSub Total 27,108Reduced Rate of 7% Legal Description Intended EstimateSr Rates Reference Exemption or Concession Beneficiary Rs.Million81 Clause (aa) 29 (xvi) Harvesting Agriculture 36 7 of sub-Section threshing and storage Sector 2 of Section 3 equipment: Reaping machines82 Clause (aa) 45 (i) Machinery for General Masses 46 7 of sub-Section preparing feeding stuff @ 2 of Section 3 7%83 Clause (aa) 45 (v) Evaporative air General Masses 36 7 of sub-Section cooling system 2 of Section 384 Clause (aa) 45 (ii) Incubators, brooders Poultry Sector 287 7 of sub-Section and other poultry 2 of Section 3 equipment @ 7%85 Clause (aa) 45 (vi) Evaporative cooling General Masses 23 7 of sub-Section pad @ 7% 2 of Section 386 Clause (aa) 45 (ii)Incubators, brooders Manufacturing 13 7 of sub-Section and other poultry (Industrial Inputs) 2 of Section 3 equipment General Masses87 Clause (aa) 45 (iii) Insulated sandwich General masses 3 7 of sub-Section panels @ 7% 2 of Section 388 Clause (aa) 45 (vi)Evaporative cooling Manufacturing 5 7 of sub-Section pad (Industrial Inputs) 2 of Section 3 General Masses89 Clause (aa) 45 (iv) Poultry sheds @ 7% Poultry Sector 2 7 of sub-Section 2 of Section 390 Clause (aa) 45 (i)Machinery for Manufacturing 28 7 of sub-Section preparing feeding stuff (Industrial Inputs) 2 of Section 3 General Masses91 Clause (aa) 45 (iii)Insulated sandwich Manufacturing 1 7 of sub-Section panels (Industrial Inputs) 2 of Section 3 General Masses92 Clause (aa) 45v EvaporatManufacturing 4 7 of sub-Section system (Industrial Inputs) 2 of Section 3 General Masses93 Clause (aa) 45 (iv)PoultManufacturing 11 7 of sub-Section (Industrial Inputs) 2 of Section 3 General MassesSub Total 496Reduced Rate of 8% Legal Description Intended EstimateSr Rates Reference Exemption or Concession Beneficiary Rs.Million94 Clause (aa) 64 Prepared Food, Manufacturing 851 8 of sub-Section foodstuff and sweetmeats (Industrial Inputs) 2 of Section 3 supplied by restaurants, General Masses/ bakeries, caterers and food items sweetmeat shops95 Clause (aa) 69 Meat and similar Manufacturing 165 8 of sub-Section products of prepared (Industrial Inputs) 2 of Section 3 frozen or preserved meat General Masses/ or meat offal of all types food items including poultry, meat and fish96 Clause (aa) 68 Frozen prepared Manufacturing 380 8 of sub-Section preserved sausages and (Industrial Inputs) 2 of Section 3 similar products General Masses/ of poultry meat or meat food items offalSub Total 1,396Reduced Rate of 10%Sr Legal Description Intended Estimate Rates Reference Exemption or Concession Beneficiary Rs.Million98 Clause (aa) 5 Raw Cotton and Ginned Agriculture 11,730 10 of sub-Section Cotton 2 of Section 399 Clause (aa) 6 Sales Tax @ 10% on The Manufacturing 9,112 10 of sub-Section Import Of Plant, Machinery (Industrial Inputs) 2 of Section 3 Not Manufactured Locally & Having No Compatible Local Substitutes, Subject To Conditions Given In S.No. 6 Of Table I of 8th Schedule To Sales Tax Act, 1990.100 Clause (aa) 6 Machinery, equipment Manufacturing 1,411 10 of sub-Section and other capital goods (Industrial Inputs) 2 of Section 3 meant for initial installation, balancing, odernization, replacement or expansion of oil refining (mineral oil, hydro-cracking and other value added petroleum products), petrochemical and petrochemical downst101 Clause (aa) 15 Ingredients of poultry Agriculture 1,357 10 of sub-Section feed, cattle feed, except 2 of Section 3 soybean meal of PCT heading 2304.0000 and oil- cake of cotton seed falling under PCT heading 2306.1000. Besides, benefit of this S.No. will also be available to following goods:- 2308.9000 (Guar Meal), 2303102 Clause (aa) 7 Flavored milk Manufacturing 607 10 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses103 Clause (aa) 11 Cream Manufacturing 525 10 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses104 Clause (aa) 10 Butter, sold in retail food items 10 10 of sub-Section packing under a brand 2 of Section 3 name97 Clause (aa) 22 Soya bean seed on Manufacturing 14,664 10 of sub-Section import by solvent extraction (Industrial Inputs) 2 of Section 3 industries, subject General Masses condition that no refund of input tax shall be admissible105 Clause (aa) 57 Rock Phosphate Manufacturing 520 10 of sub-Section (Industrial Inputs) 2 of Section 3106 Clause (aa) 5 Complete plants for Manufacturing 97 10 of sub-Section relocated industries.- (Industrial Inputs) 2 of Section 3 subject to condition. Subject to conditions given in preamble of Table-2 of 8th Schedule to the Sales Tax Act, 1990.107 Clause (aa) 1 Machinery and Manufacturing 989 10 of sub-Section equipment for development (Industrial Inputs) 2 of Section 3 of grain handling and storage facilities including silos-subject to conditions. Subject to conditions given in preamble of Table-2 of 8th Schedule to the Sales Tax Act, 1990.108 Clause (aa) 65 Ginned cotton Textile 88 10 of sub-Section 2 of Section 3109 Clause (aa) 5 Complete plants for Manufacturing 264 10 of sub-Section relocated industries. (Industrial Inputs) 2 of Section 3110 Clause (aa) 65 Supplies as made from Manufacturing 8,224 10 of sub-Section retail outlets as are (Industrial Inputs) 2 of Section 3 integrated with Board's General Masses computerized system for real-time reporting of sales111 Clause (aa) 60 Fat filled milk If sold in Agriculture, 52 10 of sub-Section retail packing under a Livestock 2 of Section 3 brand name or trademark112 Clause (aa) 1 Machinery and Manufacturing 228 10 of sub-Section equipment for development (Industrial Inputs) 2 of Section 3 of grain handling and General Masses storage facilities 1 [including silos].113 Clause (aa) 9 Cheese, sold in retail Agriculture, 9 10 of sub-Section packing under a brand Livestock 2 of Section 3 name114 Clause (aa) 58 Reduced rate of 10% on Energy Sector 3,520 10 of sub-Section import of LPG 2 of Section 3115 Clause (aa) 46 Multimedia Projectors Media Productions 5 10 of sub-Section @ 10% 2 of Section 3116 Clause (aa) 8 Yogurt Manufacturing 514 10 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses117 Clause (aa) 1 Soybean meal Manufacturing 6,597 10 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses118 Clause (aa) LPG Manufacturing 1,886 10 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses119 Clause (aa) 6 Plant and machinery not Manufacturing 443 10 of sub-Section manufactured locally and (Industrial Inputs) 2 of Section 3 having no compatible local General Masses substitutes120 Clause (aa) 60 Fat filled milk Manufacturing 3,915 10 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses121 Clause (aa) 11 Cream, sold in retail 1 10 of sub-Section packing under a brand 2 of Section 3 name122 Clause (aa) 57 Rock phosphate Manufacturing 1 10 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses123 Clause (aa) 15Ingredients of poultry Manufacturing 842 10 of sub-Section feed, cattle feed, except (Industrial Inputs) 2 of Section 3 soya bean meal of PCT General Masses heading 2304.0000 and oilcake of cotton-seed falling under PCT heading 2306.1000124 Clause (aa) 59 Products of milling Manufacturing 57 10 of sub-Section industry except wheat and (Industrial Inputs) 2 of Section 3 meslin flour General Masses125 Clause (aa) 22 Soya bean seed Manufacturing 4 10 of sub-Section (Industrial Inputs) 2 of Section 3 General Masses126 Clause (aa) 14 Milk and cream, Manufacturing 1,468 10 of sub-Section concentrated or containing (Industrial Inputs) 2 of Section 3 added sugar or other General Masses sweetening matter127 Clause (aa) 6 Machinery, equipment Manufacturing 8 10 of sub-Section and other capital goods (Industrial Inputs) 2 of Section 3 meant for initial installation, General Masses balancing, modernization, replacement or expansion of oil heavy chemical industry, cryogenic facility for ethylene storage and handling. refining (mineral oil, hydro-cracking and other value added petroleum products), petrochemical and petrochemical downstream products including fibers and128 Clause (aa) 10 Butter Food Products 181 10 of sub-Section General Masses 2 of Section 3129 Clause (aa) 12 Desi ghee Food Products 48 10 of sub-Section General Masses 2 of Section 3130 Clause (aa) 9 Cheese Food Products 208 10 of sub-Section General Masses 2 of Section 3131 Clause (aa) 13 Whey Food Products 10 10 of sub-Section General Masses 2 of Section 3Sub Total 69,592Reduced Rate of 12%Sr Legal Description Intended Estimate Rates Reference Exemption or Concession Beneficiary Rs.Million132 Clause (aa) 50 LNG/RLNG Industry/General 759 12 of sub-Section Masses 2 of Section 3134 Clause (aa) 66 Supplies as made from Manufacturing 1,082 12 of sub-Section retail outlets as are (Industrial Inputs) 2 of Section 3 integrated with Board's General Masses computerized system for real-time reporting of sales133 Clause (aa) 51 LNG/RLNG Energy Sector 17,480 12 of sub-Section General Masses 2 of Section 3Sub Total 19,321Reduced Rates under 9th Schedule Legal Description EstimateSr Intended Beneficiary Reference Exemption or Concession Rs. Million1 9th Schedule Mobile Phones General Masses 27,096Sub Total 27,096Grand Total 578,456 Explanatory notes on Sales Tax Estimates A. Types of Concessions In sales tax act, concessions are granted broadly by three ways I. Zero rating, II. Exemptions, III. Reduced rates. 1. Zero ratingUnder Section 4 of the Act, goods exported, or the goods specified in the Fifth Schedule; supply of stores and provisions for consumption aboard a conveyance proceeding to a destination outside Pakistan as specified in section 24 of the Customs Act, 1969 (IV of 1969); such other goods, as the Federal Government may specify by notification in the official Gazette, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements are charged to tax at the rate of zero per cent.
Under section 13 of the Sales Tax Act 1990, supply of goods or import of goods specified in the Sixth Schedule are, subject to such conditions as may be specified by the Federal Government, are exempt from tax under the Act. The Federal Government is empowered to issue exemptions whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements, by notification in the official Gazette. Exemptions can be on any supplies made or imports, of any goods or class of goods from the whole or any part of the tax chargeable under the Act, subject to the conditions and limitations specified therein.
Under section 3 (2) (b), Federal Government is empowered to declare that in respect of any taxable goods, the tax shall be charged, collected and paid in such manner and at such higher or lower rate or rates as may be specified, subject to such conditions and restrictions as it may impose, by notification in the official Gazette.
B. Nature of exemptions and concessions
In sales tax act, concessions are granted broadly by three ways: i.e. Zero Rating,
Exemptions, and reduced rates.
In some cases, product based concession is granted under sales tax act, for example, in case of food and grocery items, certain products are exempt or have reduced rate of sales tax. It may get tricky because these exemptions can then have rules within rules.
Prepared foods and ready-to-eat food items may be exempted or have reduced rate whereas the same items if sold under brand name may not have the concession.
Under the Act certain products that are intended to be used for in-house consumption, for use of a specific organization are given tax concession. Typically, this is where, the end consumers are not liable to be taxed, or intended to be given tax concession.
Diplomats, diplomatic missions, diplomatic organizations, non-profit organizations or government agencies often are not required to pay sales tax. This concession in the form of zero rating or exemption is extended to these national and international agencies.
C. Suggestion for further improvement of Sales Tax estimates
The reporting and calculation of tax expenditures estimates may be improved through:
Legal Enactment
In previous estimates it was suggested that in sales tax act, concessions are granted broadly by three ways, i.e. zero rating, exemptions, and reduced rates. The sales tax return of any registered person may not be considered as true and valid return, without mentioning exempt supply, if any. This will help in computing the exemption incidence when exempt supplies are made by various registered persons in supply chain.
Administrative Measures
Industry-ratios and/or standardized minimum value addition formulas may be issued, with the consultation of major industries, to have more accurate and rational estimates, and so that exact extent of value addition in each industry can be estimated.
Engagement of Experts and Internees
Various expert, working in the universities may be engaged to develop a broad based consultancy and opportunities may be provided to young university graduates to apply various statistical tools on the data for improvement in reporting and calculating tax buoyancy
Training of the Team
The team engaged in SPR&S may be trained in National and International well reputed institutes for understanding and opting international best practices.
===============================================================================================1 Chapter-99 Exemptions 12,6352 FTA & PTA Exemptions 34,2103 5th Schedule Exemptions & Concessions 137,4184 General Concessions: Automobile sector, 55,877 E&Ps, CPEC, etc.5 Export Related Exemptions 47,631Total 287,771===============================================================================================Legal ReferenExemption Type Beneficiary Sector CD Cost of Exemption FY 2019-20Chapter-99 Exemptions9901.0000- Chapter-99 Exemptions: Agencies under the United 188 Goods imported by Nations various agencies of the United Nations9902.0000- Chapter-99 Exemptions: Diplomats/Embassies/ 506 Goods imported by Consulates under the Diplomats/Embassies/ Diplomatic and Consular Consulates Privileges Act, 19729903.0000- Chapter-99 Exemptions: Privileged personnel or by 3,240 Goods imported by organizations or by any privileged personnel or person authorized by the by organizations or by contracting parties, under any person authorized by grant-in-aid agreements the contracting parties, (including those under grant-in-aid agreements which cover off agreements budget foreign contributions or funds brought by registered INGO's without any financial liabilities to the Government of Pakistan)9904.0000- Chapter-99 Exemptions: Vehicles in CKD condition, 7 Vehicles in CKD imported by recognized condition, imported by local manufacturer for recognized local supply to diplomat, manufacturer for supply diplomatic mission, to diplomat, diplomatic privileged person mission, privileged person9905.0000- Chapter-99 Exemptions: Dignitaries of UAE, Qatar 0 Imports by Dignitaries of and Bahrain UAE, Qatar and Bahrain9906.0000- Chapter-99 Exemptions: The President and the 0 Goods imported under Prime Minister of Pakistan. the President/Prime The Governors and the Minister/Governors/'s Salary, Allowances and Acting Governors of the Privileges Act, 1975 Provinces9908.0000- Chapter-99 Exemptions: Gifts received by the - Goods received as gift or Federal, the provincial or donation from a foreign any public sector government or organization organization by the Federal or Provincial Government or any public sector organization or Goods received as gift by Pakistani organizations from Church World Services or the Catholic Relief Services9909.0000- Chapter-99 Exemptions: Articles, value of which 7 Articles, value of which does not exceed does not exceed Rs.20,000/-per parcel, if Rs.20,000/-per parcel, if imported through post or imported through post or courier service as courier service as unsolicited gift parcel unsolicited gift parcel9910.0000- Chapter-99 Exemptions: Samples of no commercial 28 Samples of no value imported by the Commercial value manufacturers Imported by manufacturers9911.0000- Chapter-99 Exemptions: (i) Relief goods donated for 737 Relief goods donated for free distribution Free distribution among (ii) Plant, machinery and the victims of natural equipment imported by way disaster or other of donation for installation in catastrophe OR Plant, the earthquake hit districts machinery and as certified by equipment imported by ERRA/National Disaster way of donation for Management Authority. Installation in the Earthquake hit districts9912.0000- Chapter-99 Exemptions: Imports by Edhi Foundation 23 Imports by Edhi Foundation9913.0000- Chapter-99 Exemptions: Gifts or donations received 3,111 Gifts or donations by a charitable non-profit received by a charitable making hospital or institution non-profit making hospital or institution9914.0000- Chapter-99 Exemptions: Imports by Charitable 1,716 Imports by Charitable Institutions and Hospitals==================================================================================================Institutions and Hospitals==================================================================================================9915.0000 - Chapter-99 Exemptions: Goods imported by or 309 Goods imported by or donated to non -profit donated to non -profit making educational and making educational and research institutions research institutions9916.0000 - Chapter-99 Exemptions: Goods supplied free of cost 112 Goods supplied free of as replacement of identical cost as replacement of goods previously imported identical goods including goods imported previously imported within warranty period Replacement Goods.9922.0000 - Chapter-99 Exemptions: Ship spares, stores and 45 Ship spares, stores and equipment imported for use equipment imported for in ships registered in use in ships registered in Pakistan Temporary Import Pakistan or Export.9924.0000 - Chapter-99 Exemptions: Eye cornea 1 Eye cornea9925.0000 - Chapter-99 Exemptions: Medical 543 Artificial kidneys, appliances/equipment. hemodialysis machines, hemodialyzers, A.V. fistula needles, hemodialysis fluids & powder, blood tubing tines for dialysis, reverse osmosis plants for dialysis, double lumen catheter for dialysis, catheters for renal failure patients, peritoneal dialysis solution and cardiac catheters. colostomy bags and appliances identifiable for Ostomy use9927.0000 - Chapter-99 Exemptions: Pharmaceutical raw 84 Pharmaceutical raw materials if imported for materials if imported for manufacture of manufacture of contraceptives contraceptives in accordance with the input output ratios determined by the Directorate of Input Output Co-efficient Organization. Contraceptives and accessories thereof.9930.0000 - Chapter-99 Exemptions: Any goods, including 484 Any goods, including vehicles, specified in the vehicles, specified in the First schedule to the First schedule to the Customs Act, 1969 (IV of Customs Act, 1969 (IV of 1969) imported by 1969) imported by Federal/Provincial/ Local Federal/Provincial/ Local Government Departments, Government Municipal bodies and Departments, Municipal Development authorities bodies and Development subject to the condition that authorities subject to the the goods are donated to condition that the goods the importers for use in an are donated to the approved foreign grant importers for use in an funded project approved foreign grant funded project under a proper grant relating to Capital Aid-Technical Assistant Agreement signed between the Government of Pakistan and a foreign government or agency subject to concurrence of the Federal Board of Revenue.9931.0000 - Chapter-99 Exemptions: Ground handling equipment 5 Ground handling imported by airlines equipment, service and operation vehicles, catering equipment and fuel trucks not manufactured locally, imported by domestic airlines or by any other service company to which a license has been issued by the Civil Aviation Authority for such purposes.9937.0000 - Chapter-99 Exemptions: Certain items imported by 226 Items relating to disabled the Disabled persons persons, like Wheel chairs, Artificial human part, Items used for rehabilitation of blind persons etc..9938.0000 - Chapter-99 Exemptions: Certain Disposables, as are 958 Disposables, as are not not manufactured locally, manufactured locally, for for Cardiology/cardiac Cardiology/cardiac surgery, Neurovascular, surgery, Neurovascular, Electrophysiology, Endo- Electrophysiology, Endo- surgery, Endoscopy, surgery, Endoscopy, Oncology, Urology, Oncology, Urology, Gynecology; Gynecology;9939.0000 - Chapter-99 Exemptions: Diagnostic kits for HIV and 304 Diagnostic kits for HIV Hepatitis and Hepatitis9941.0000 - Chapter-99 Exemptions: Goods imported by or - Goods imported by or donated to municipal donated to municipal authorities including authorities including development authorities, development authorities , Federal Government, Federal Government, Provincial Government, Provincial Government, Government of Azad Government of Azad Jammu and Kashmir, Jammu and Kashmir, Government of Gilgit- Government of Gilgit- Baltistan, National Disaster Baltistan, National Management Authority Disaster Management (NDMA), Provincial Authority (NDMA), Disaster Management Provincial Disaster Authority (PDMA) and Management Authority Government (PDMA) and Emergency/Rescue Government services, Emergency/Rescue services,Sub-Total:- Chapter-99 Exemptions 12,635=======================================================================================================FTA & PTA Exemptions: Bilateral arrangements with different Governments /Regional=======================================================================================================commitments=======================================================================================================558(I)/2004 Table I Section 19 FTA: General exemption on 0 import from ECO558(I)/2004 Table II Section 19 FTA: General exemption on 76 import from SAARC1296(I)/2005 Table-I Section 19 FTA: Pak-China Early 0 Harvest Program (prescribes FTA CD Rate)1296(I)/2005 Table-II Section 19 FTA: Pak-China Early 0 Harvest Program (prescribes %age of concession in CD Rate)1274(I)/2006 Table-I Section 19 FTA: General exemption on 394 import from SAARC countries under SAFTA Agreement1274(I)/2006 Table-II Section 19 FTA: General exemption on 7 import from SAARC countries under SAFTA AgreementSRO 659(I)/2007 Table-I Section 19 FTA: General exemption on 9,323 import from China under Pak-China FTASRO 659(I)/2007 Table-II Section 19 FTA: General exemption on 1,876 import from China under Pak-China FTASRO 1640(I)/2019 - Section 19 FTA: General exemption on 13,258 import from China under Pak-China FTASRO1151(I)/2007 Table Section 19 PTA: General exemption on - import from Mauritius under PTASRO1261(I)/2007 Table I Section 19 PTA: General exemption on 2,299 import from Malaysia under PTASRO1261(I)/2007 Table II Section 19 PTA: General exemption on 873 import from Malaysia under PTASRO741(I)/2013 Table Section 19 PTA: General exemption on 3,303 import from Indonesia under Pak-Indonesia PTASRO280(I)/2014 d Section 19 FTA: General exemption on 375 import from Sri Lanka under Pak-Sri Lanka FTASRO280 (I)/2014 I Section 19 FTA: General exemption on import from Sri Lanka under Pak-Sri Lanka FTASRO280 (I)/2014 Table-I Section 19 FTA: General exemption on 2,260 import from Sri Lanka under Pak-Sri Lanka FTASRO280 (I)/2014 TABLE- Section 19 FTA: General exemption on 165III import from Sri Lanka under Pak-Sri Lanka FTASub-Total:-FTA & PTA Exemptions 34,2105th Schedule (Customs Duty)5th Schedule (Customs Exemption under 18 (1A) Imports of Plant, Machinery, 55,595Duty) Part-I of the Customs Act, 1969 Equipment and Apparatus, including Capital Goods for various industries/sectors5th Schedule (Customs Exemption under 18 (1A) Import of Active 1,728Duty)-Part II Table-A of the Customs Act, 1969 Pharmaceutical Ingredients by pharma sector5th Schedule (Customs Exemption under 18 (1A) Excipient/Chemicals by 589Duty)-Part II Table-B of the Customs Act, 1969 pharmaceutical sector5th Schedule (Customs Exemption under 18 (1A) Drugs (mostly Life Saving) 6,955Duty)-Part II Table-C of the Customs Act, 1969 by pharmaceutical sector5th Schedule (Customs Exemption under 18 (1A) Packing Materials/Raw 1,080Duty)-Part II Table-D of the Customs Act, 1969 Materials for Packing by pharmaceutical sector5th Schedule (Customs Exemption under 18 (1A) Diagnostic Kits/Equipment) 3,151Duty)-Part II Table-E of the Customs Act, 1969 by pharmaceutical sector5th Schedule (Customs Exemption under 18 (1A) Poultry and Textile Sectors 39,227Duty)- Part III of the Customs Act, 19695th Schedule (Customs Exemption under 18 (1A) Machinery and Equipment 547Duty)-Part IV of the Customs Act, 1969 for Textile Sector5th Schedule (Customs Exemption under 18 (1A) Automotive Manufacturing 66Duty)-Part V of the Customs Act, 1969 Sector (Auto Policy)5th Schedule (Customs Exemption under 18 (1A) Aviation Sector (Aviation 403Duty)- Part VI of the Customs Act, 1969 Policy)5th Schedule (Customs Exemption under 18 (1A) Essential edible items like 7,567Duty) Part-VII of the Customs Act, 1969 pulses, potato etc, Oil and Oil products, Inputs of export sectors etc.5th Schedule (Customs Exemption under 18 (1A) Miscellaneous 20,509Duty)- Part VIII of the Customs Act, 1969Sub-Total:- 5th Schedule (Customs Duty) 137,418268 (I)/2015 Section 19 Mining equipment & 2,452 machinery imported by Thar Coal Field565 (I)/2006 Section 19 Raw material of survey 14,331 based Local industries: Stationary/Electrical Capacitors/Pesticides/ Distilled Faty Acids/CRC & GI coils/Fans/ Transformers/Electric Motors manufacturersSRO 499 (I)/2013 Section 19 Auto Sector: General 434 concession for import of Hybrid Electric VehiclesSRO678 (I)/2004 Section 19 Exploration and Production 5,024 (E&P)Companies107 (I)/2019 and Section 19 Textile Sector (Local Yarn -SRO 48 (I)/2018 Producers): Import of CottonSRO 121 (I)2014 Section 219 Afghan Transit Trade 7SRO 48 (I)/2018 Section 19 Import of cotton -SRO 642 (I)/2016 Section 19 Imports by M/s CSCEL for 19 Karachi-Peshawar MotorwaySRO 644 (I)/2018 Section 19 General: Concession of CD 475 on import of electric motor vehiclesSRO40 (I)/2017 Section 19 Lahore Orange Metro Train 50 ProjectSRO655 (I)/2006 Section 19 Vendors of Automotive 13,361 sectorSRO656 (I)/2006 Section 19 OEMs of Automotive Sector 15,930SRO235 (I)/2020 Section 19 COVID-19 Exemptions- 810 GeneralSRO318 (I)/2020 Section 19 COVID-19 Exemptions- 2,614 GeneralSRO556 (I)/2020 Section 19 COVID-19 Exemptions - 364 GeneralSRO558 (I)/2020 Section 19 COVID-19 Exemptions - 6 GeneralSRO559 (I)/2020 Section 19 COVID-19 Exemptions - - GeneralSub-total 55,877Export Related ExemptionsSRO450 (I)/2001 Section 219 DTRE 5,707SRO450 (I)/2001 Section 219 Manufacturing Bonds 9,976SRO 327 (I)/2008 Section 219 Export Oriented Units 15,338SRO 492 (I)/2008 Section 219 Temporary Imports 10,007SRO Section 219 EPZ (abroad) 6,603450 (I)/2008/9917.0000Sub-Total:- 47,631Grand Total: 287,771Benchmar for Customs Duty Cost Estimationa) Statutory rates of Customs Duty (CD), Regulatory Duty (RD), and Additional Customs Duty
(ACD) have been taken as benchmark rates. Customs related exemptions / concessions are generally sector based.
b) While making calculations, any deviation from statutory rates has been considered as
exemption / concession.
c) Period of study is FY 2010, i.e. July 2019 to June 2020.
d) Report is based on figures in respect of customs duty exemptions given under chapter-99 (Rs.12,635 million). FTA/PTAs (Rs.34,210 million), 5th Schedule to Customs Act, 1969 (Rs.137,418 million) and exemptions given under other SROs (Rs.55,877 million) including export oriented exemption/concession SROs.
Methodology for Customs Duty Cost Estimation Data for estimations of Customs is also taken from FBR’s official database, and estimations were Calculated against statutory rates of duties, using revenue forgone approach.
VAT GAP MODEL:
USING SUPPLY-USE TABLES
Definition of the VAT Gap: The VAT Gap refers to the VAT Policy Gap or the VAT
Compliance Gap.
The VAT Policy Gap: The VAT Policy Gap is the difference between the Potential VAT collectible under a benchmark or standard regime’ of the VAT (where there are no exemptions, lower rates or special treatment of any type of consumption or sector/class of taxpayers), and the Potential VAT collectible under the current regime (which includes any special treatment of consumption or sector/class of taxpayers). The VAT Policy Gap estimates the revenue foregone due to the current policy of the government.
The VAT Compliance Gap: The VAT Compliance Gap is the difference between this Potential VAT collectible under the current regime and the Actual VAT collection. The VAT Compliance Gap estimates the gap in VAT due to non-compliance by taxpayers. This study estimates VAT Policy GAP for the year 2021.
Efficient collection of taxes is considered as a cornerstone of a good tax system. However, because of non-compliance and other VAT foregone this efficiency may not be achieved.
Therefore, it creates a Gap between potential VAT and actually collected VAT. Given tax base, if taxes remain unpaid, would cause burden on those who are contributing in this regards. Which is unfair and creates distortions in the economy. Further these unpaid VAT would put burden on the overall public finances resulting in either curtailing the government expenditures or increase the debt burden. Both of which are detrimental for growth and development goals of the government. Despite healthy revenue growth especially by FBR (for the period 2001-2020 average growth is 13.9%), Pakistan’s overall revenue collection has been low when compared to the expenditure outlays.
One of the core reason for these under or low payment in relation to the base is because of Tax Expenditures1. These are normally reported2 and Governments throughout the world use tax expenditures as an alternative policy option to achieve social objectives and promote economic growth. Tax expenditures as a percentage of the total tax collected (income, sales, FED, and customs) have been increasing over time. In Tax
Expenditure Report 2020, based on data pertaining to Financial Year 2018-19, it has increased to an estimated Rs. 1,150 billion in which Tax expenditure for Sales Tax amounted the highest at Rs. 518.8 billion (45% of the total), and in Customs Rs. 253.1 billion (22%). In FY 2018-19, FBR’s tax collection was Rs. 3,828 billion. Overall, tax expenditure to GDP ratio stands at around 3%.
Understanding the scale and the scope of VAT policy gap and evaluating cost and benefit analysis is prerequisite for fiscal governance especially for high deficit countries like Pakistan. One of the suitable approaches to measure the VAT Gap is Top-down approach. In the present analysis only “VAT-GAP” model estimation is done using Supply Use Tables. Sales Tax is currently single largest tax revenue source for FBR. In FY 2019-20 it amounted to 1,597 Billion Rs. which is approximately 40% of the total tax collected by FBR. For Sales Tax (Domestic) the base is considered to be Large Scale Manufacturing (LSM) and for Sales Tax (Imports) the base is imports.
The assessment of VAT gap analysis provides a tool to tax administrators, policy makers and relevant stakeholders, which can be roped through policy choices.
We use a detailed input-output model of Pakistan’s economy to estimate the potential VAT form domestic sales. This supply-use table provide information on the final consumption as well as the production and use of goods and services in the economy.
Not only does the model provide information on total use or gross sales for each of the 40 sectors in the supply-use table but it also provides crucial information on the intermediate and value of primary use, the value of import and exports, and the value of investment expenditures. In other words, the Input-output model provides the necessary information to the model ‘Pakistan’s potential sales tax base’, including the taxable supplies, input credits, and refunds on exports. The most recent Input-output model for Pakistan’s economy is for 20173. We re-benchmark this model to reflect the level of Pakistan’s economy by sectors values for 2020, using national accounts data. The accuracy of our VAT gap estimates suffer significantly because the I-O model does not fully capture the informal sector.
4.1 Consumption Approach
The supply-use table provides information on the final consumption of consumer, government, exporters. The final consumption of commodities includes the VAT in the value. We eliminate the VAT from consumption at commodity level first, then we apply the Commodity VAT rate to calculate the potential VAT Policy Gap using the Supply-Use table.
The VAT Policy Gap is the difference between the Potential VAT collectible under a benchmark of the VAT (where there are no exemptions, lower rates or special treatment of any type of consumption or sector/class of taxpayers), and the Potential VAT collectible under the current regime (which includes any special treatment of consumption or
sector/class of taxpayers).
Potential policy VAT GAP= (Final Consumption - VAT) × - (( - )×
=============================================================================Table 1: VAT Collected upto June 2020 VAT Collected VAT Collected (Rs. Million) ($ billion4) ST(Imports) 876,352 5.84 ST(Domestic) 720,532 4.81 Total ST 1,689,477 10.65 FED (Imports) 9,518 0.06 FED (Domestic) 240,956 1.61 Total FED 250,474 1.67 Customs 626,612 4.18 VAT Collected 2,473,970 16.50=======================================================================================================Table 2: Supply-Use Tables: Potential VAT GAP calculated using Consumption======================================================================================================= Approach Sales Tax VAT Under VAT Gap VAT Gap ($Billion) Current ($Billion) (% of Actual VAT Regime Collected) ($Billion)VAT Policy GAP 25.7 22.21 3.5 21.0• The estimates suggest VAT policy gap is about $ 3.5 billion which is approximately
21 percent of Actual VAT collected upto 2020.4.2 Value Added Approach
To understand the methodology used to estimate the VAT gap, it is necessary to review Some GDP accounting identities. There are three approaches to estimate the GDP, the Income approach, expenditure approach, and the production approach or value added approach. As Input-output table uses both the expenditures approach (horizontally along the row of the model) and the model value added approach (vertically along the columns of the model) to GDP accounting.
The following GDP identities are
GDP = C + I + G + X - M = { ValueAddedc = {(Totaluse - Value_Added)c (1)
Where C is the final consumption expenditures. I is the gross investment expenditures, G is the government purchases of goods and services, X is the value of exports and M is the value of imports The subscripts c stands for the commodities (sectors) We can obtain an expression for the sales tax base by solving the left-hnad-side of (1) for final consumption (C), which yields the following expression
Sales tax base=GDP+M-I-G-X (2)
Substituting (2) into the right-hand-side (1), we obtain an equivalent expression for the
sales tax base.
Sales tax base= ( { Value Adeed i + M i - I i - X i) - G
Multiplying (3) by the sales tax rate ( ) and re-arranging the resulting expression, we
obtain the following definition
Potential VATC ({ tc X (Total Use c + M i - I i - X c - G c ))
Potential VAT Policy Gap =({(Total Use c + M i - I i - X c - G c )) x t
The equation (5) provides operational definitions that are useful for estimating VAT Policy GAP.
=============================================================================Table 3: Supply-Use Tables: Potential VAT GAP calculated using Value Added=============================================================================Approach============================================================================= Sales Tax VAT under VAT Gap VAT Gap ($Billion) current ($Billion) (% of Actual Regime VAT ($Billion) Collected)VAT Policy GAP 26.1 22.3 3.8 23.0=============================================================================• Using the value added approach, the estimates suggest gap is about $ 3.8 billion which is approximately 23 percent of VAT under current regime. This gap close to the VAT policy gap measured by the consumption approach.
Major part of government tax revenues is collected by FBR. A substantial increase in the tax collections has been witnessed during last two decades. FBR tax collection was just around Rs.392 billion in 2000-01 which has jumped to around Rs.4 trillion in 2019-20. The average growth till FY 2017-18 remained 14.1%, however, due to Covid-19 pandemic the yearly growth has plummeted, thus affecting slightly the average annual growth for the period 2001-2020 as well (13.9%).
1.1 Five Years FBR Collection Trend
The last five years’ collection trend is shown in the following table. The 5 years average growth was 9.3%, however, by excluding the last two years, average growth for normal years i.e. FY 2013-14 to FY 2017-18 stands at 14.6% (Table 1).
Table 1: FBR Collection Trend
Tax 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 5 Years
Heads Avg.
Growth (%) * DT 877,255 1,033,720 1,217,474 1,344,226 1,536,583 1,445,508 1,523,445 15.7
ST 996382 1087790 1,302,371 1,328,965 1,485,306 1,459,213 1,596,877 12.2
FED 138084 162248 188,055 197,911 213,493 238,186 250,474 12.1
CD 242810 306220 404,572 496,772 608,373 685,575 626,612 21.0
Total 2,254,531 2,589,978 3,112,472 3,367,874 3,843,755 3,828,482 3,997,408 14.6
(*) for the Years 2013-14 to 2017-18
Tax-GDP Ratio
Similarly, in the tax-GDP ratio, similar trend has been noticed and it kept on rising till FY 2017-18 and reached 11.2 (Graph 1), but later on this healthy trend couldn’t continue during FY 2018-19 and FY 2019-20, which is mainly attributed to Covid-19 pandemic related economic challenges.
1.2 CFY Collection: July-March 2020-21
After a slow growth in previous two years now the collection is picking up, which is evident from table 2. This performance is very encouraging as compared to previous couple of years. The nine months target has been achieved to the exte
Table 2: CFY Collection: July-March 2020-21 Rs. MillionTax Heads 2020-21 2019-20 Growth (%)DT 1,246,379 1,142,286 9.1ST 1,415,770 1,250,222 13.2FED 191,686 186,472 2.8CD 541,049 481,478 12.4TOTAL 3,394,885 3,060,458 10.9With the recovery of economy the revenue collection is also improving, and with further improvements in coming months hope the tax collection shall also increase, thus enabling FBR to achieve its revenue FY 2021-22 target.FBR collects Direct Taxes (DT), Sales Tax (Domestic & Imports), Federal Excise Duty (FED) and Customs Duties (CD). In this study tax-wise buoyancy estimates have been used to forecast the FBR head-wise revenues for FY 2021-22. The tax buoyancy is an indicator to measure efficiency and responsiveness of revenue mobilization in response to growth in the GDP or national income. A buoyant tax means the tax revenues increase more than proportionately in response to a rise in national income/GDP/base.
2.1 Methodology
The SPRS Wing before budget, projects the head-wise revenue estimates based on buoyancy estimates6 from previous years on rolling basis. Tax-wise buoyancy estimates are calculated by using historical collection and respective bases data. The current tax-wise buoyancy estimates are estimated from data for the years 1999-2000 to 2019-20 in respect of economic indicators i.e. GDP, Non-agri GDP, LSM and Imports.
The respective proxy bases of head-wise FBR taxes are as under:
Direct Taxes (DT) Non-agri GDP
Sales Tax Domestic (STD) Large Scale Manufacturing (LSM)
Sales Tax Imports (STM) Import Value
Customs Duties (CD) Dutiable Import Value
Federal Excise Duty (FED) LSM
Buoyancy estimates are derived as = % Change in Actual Revenues
% Change in Respective BaseSince these tax bases have a dynamic
relationship with GDP, in the second step % Change in Respective Base
we have calculated the buoyancies of % Change in GDP
these tax bases with GDP =
Finally these two are multiplied to arrive at respective tax to GDP buoyancies=
% Change in Actual Revenues % Change in Respective Base
% Change in Respective Base % Change in GDP
Using these buoyancy estimates autonomous growth for each tax is estimated by using the projections provided by Finance Division for each proxy base.7 It provides for the GDP Growth and inflation forecast for upcoming year. GDP value used for this projection of growth is Gross Value Addition of Sectors at Constant Factor Costs. Using the inflation forecasts these GDP growth estimates are converted into GDP growth estimates at Current Factor Cost. Further, GDP-Gross value addition at Current Factor Cost is used for measuring the Buoyancy estimates to be used for revenue forecasts. In respect of Direct Taxes (DT) Non-Agri GDP has been taken as its proxy base. The buoyancy of direct taxes has been estimated in two steps: in the first step Direct Tax to Non-Agri GDP and in second step Non-Agri-GDP to GDP (Gross Value Addition-Current Factor Cost) is estimated. Then two buoyancy estimates have been multiplied to estimate the Direct Taxes to GDP Buoyancy estimates.
Direct taxes to Non-Agri GDP Buoyancy (B1) = % Change in Direct Taxes
% Change in Non-Agri GDPNon-Agri GDP to GDP Buoyancy (B2) = % Change in Non-Agri GDP
% Change in GDPDirect taxes to GDP Buoyancy = B1 * B2
Similarly for Customs (CD) the proxy base is dutiable imports, whereas the projections as provided by Finance Division are for the total imports. Therefore, the buoyancy has been estimated in two steps: first Customs to dutiable imports and in second step Dutiable Imports to total Imports and then these two have been multiplied to get the CD buoyancy estimates.
For Federal Excise (FED) and Sales Tax (Domestic) the base is Large Scale Manufacturing (LSM) and for Sales Tax (Imports) the base is imports. Therefore, for these taxes the buoyancy values are directly estimated from proxy bases. Following table reflects the respective buoyancies which are estimated using simple log-log regression method in excel sheet by using log values of actual data for taxes.
Table 3: Buoyancy ResultsDirect Tax (DT) DT to Non-Agri GDP Non-Agri-GDP to GDP DT to GDP 1.1 0.99 1.13Sale Tax-Domestic (STD) 1.11Sales Tax-Imports (STM) 0.92Customs (CD) Customs to Custom-Dutiable Imports Dutiable Imports to Imports Imports 0.95 0.95 0.90FED 0.77Calculating Autonomous Growth
In the second step autonomous growth has been estimated by multiplying buoyancy estimates (Table 3) to projected growths of respective bases (Table 4):
Table 4: Growth Assumptions for FY 2021-22
Macroeconomic Indicators Projected Growths (%)10 GDP (Nominal) 13.22 LSM (Nominal) 14.70Imports 12.00Inflation 8.20GDP (Real) 5.02LSM (Real) 6.50Table 5 provides an autonomous growth parameters for each tax head. These are based on the buoyancy estimates from the last 20 years actual revenue collection data and the macroeconomic proxy bases provided by Pakistan Bureau of Statistics/Annual Economic Surveys and the growth projections published in Budget Strategy Paper / Economic Adviser’s Wing, Finance Division.
============================================================Table 5: Autonomous Growth============================================================[Base Growth * Buoyancy] Autonomous Growth (%)DT (GDP non-agri * DT Buoyancy) 14.89ST(D) (LSM * STD Buoyancy) 16.31STM (Imports * STM Buoyancy) 11.03CD (Imports * CD Buoyancy) 10.85FED (LSM * FED Buoyancy) 11.30These autonomous growths will be used to project the autonomous growth estimates of respective revenue heads. To be sure of the results robustness a small exercise was also done by using the reduced and increased nominal growths by 10%. The resulting change was insignificant.
2.2 Head-wise Revenue Projections FY 2021-22
The autonomous growth (Table 5) has been applied on base year’s expected collection (i.e. 2020-21) for each respective head to project an increase of Rs. 636 billion. This addition has been added in the expected collection of FY 2020-21 thus, the revenue forecast for FY 2021-22 without additional Policy/Admn measures has been obtained to the tune of Rs. 5,336 billion. The required growth over the expected collection of FY 2020-21 i.e. Rs. 4,700 billion would be 13.5% in FY 2021-22. However, with the addition of Policy/Admn measures the target for FY 2021-22 would be Rs. 5,829 billion, which is near to IMF suggestion i.e. requiring a growth of about 24.0%.
Table 6: Revenue Projections for FY 2021-22 (Rs. Billion)Base Growth Assumptions Buoyancy Estimates Autonomous growthSectors % % DT (GDPN *GDP (Nominal) 13.22 DT 1.13 DTBuoy) 14.89 ST(D) (LSMN *LSM(Nominal) 14.70 ST D 1.11 STDBuoy) 16.31 STM (Imports *Total Imports 12.00 STM 0.92 STMBuoy) 11.03 CD (Imports *Inflation 8.20 Customs 0.90 10.85 CDBuoy) FED (LSMN *GDP (Real) 5.02 FED 0.77 11.30 FEDBuoy)LSM (Real) 6.50 DT ST(D) ST(I) CD FED TotalExpected Base 1,789 934 1,002 700 275 4,700Figures 2020-21Projection (2021-22)with Autonomous 266 152 111 76 31 636GrowthFBR Projections 2,055 1,086 1,113 776 306 5,336without measures FY ST 2,199 Req. 13.52021-22 (total) Growth(*) This excludes Policy/Admn Measures and consists of projection due to autonomous growth
Concluding Remarks
It has been found that the overall FBR taxes are buoyant (1.04 overall buoyancy) and there is a potential for increase in tax revenues provided that macroeconomic indicators are doing well. It is evident from last 20 years data that FBR revenues increased substantially with around 14% average growth. The head-wise break-up reveals that the direct taxes are most buoyant with I.13 buoyancy value, followed by sales tax (domestic) with 1.11 buoyancy estimates. On the other hand, sales tax (imports), customs and FED have relatively lesser buoyancies. In this regard, addressing the issues of narrow base, unnecessary exemptions and valuation problems at import stage can be instrumental for making these tax heads more buoyant, thus enabling the revenue organization to fetch more tax revenues.
The revenue forecast for FY 2021-22 by applying the buoyancy estimates and projected respective macroeconomic indicators would be Rs.5,336 billion without Policy/Admn measures. After adding Policy/Admn measures the target would be Rs.5,829 billion. However the revenue collection and achieving of target would largely depend on the performance of the economy against the targets.
==================================================================================================================== Annex-I====================================================================================================================Net Tax collection 2000-01 to 2019-20 (Rs. Million)====================================================================================================================S.No FY Direct Taxes ST Imports ST Dom FED Customs Total====================================================================================================================1 2000-01 124,585 88,554 65,011 49,080 65,047 392,2772 2001-02 142,505 92,779 73,782 47,186 47,818 404,0703 2002-03 151,898 105,605 89,534 44,754 68,836 460,6274 2003-04 165,079 125,875 93,292 45,552 91,045 520,8435 2004-05 183,372 144,845 93,692 53,104 115,374 590,3876 2005-06 224,988 171,445 123,353 55,272 138,384 713,4427 2006-07 333,737 175,909 133,487 71,804 132,299 847,2368 2007-08 387,861 196,034 181,396 92,137 150,663 1,008,0919 2008-09 443,548 203,715 248,029 117,455 148,403 1,161,15010 2009-10 525,977 247,246 269,102 124,784 160,273 1,327,38211 2010-11 602,451 308,648 324,709 137,353 184,853 1,558,01412 2011-12 738,424 430,399 374,500 122,464 216,906 1,882,69313 2012-13 743,409 429,831 412,697 120,964 239,459 1,946,36014 2013-14 877,255 495,330 501,052 138,084 242,811 2,254,53215 2014-15 1,033,720 553,028 534,762 162,248 306,220 2,589,97816 2015-16 1,217,474 678,313 624,058 188,055 404,572 3,112,47217 2016-17 1,344,226 702,565 626,400 197,911 496,772 3,367,87418 2017-18 1,536,583 824,219 661,087 213,493 608,373 3,843,75519 2018-19 1,445,508 810,357 648,856 238,186 685,575 3,828,48220 2019-20 1,523,064 876,333 720,471 250,470 626,378 3,997,408===================================================================================================================== Annex-II===================================================================================================================== Tax Bases Data (Rs. Million)=====================================================================================================================S.No FY GDP (Gross Value Addition) GDP-non agri LSM Imports Dutiable Imports=====================================================================================================================1 2000-01 3,923,244 2,977,943 410,879 627,000 386,5972 2001-02 4,146,167 3,177,876 424,089 634,630 404,6413 2002-03 4,534,218 3,474,902 481,374 714,372 436,3164 2003-04 5,250,527 4,085,776 621,899 897,825 629,1595 2004-05 6,122,568 4,808,334 814,657 1,223,079 869,8156 2005-06 7,715,777 5,701,305 1,003,062 1,711,158 1,052,8377 2006-07 8,735,766 6,549,859 1,149,573 1,851,136 1,010,6038 2007-08 10,355,255 7,961,728 1,363,068 2,512,072 1,283,6969 2008-09 12,542,265 9,543,644 1,427,213 2,723,570 1,337,62910 2009-10 14,248,547 12,787,274 1,644,117 2,910,975 1,333,70911 2010-11 17,647,553 13,054,833 2,144,831 3,455,286 1,521,32912 2011-12 19,361,511 14,608,436 2,362,410 4,009,093 1,600,18613 2012-13 21,496,680 16,161,704 2,519,037 4,349,880 1,652,82314 2013-14 24,028,897 18,052,680 2,824,463 4,634,974 1,778,44415 2014-15 26,089,690 19,553,568 2,853,222 4,719,399 2,703,37116 2015-16 27,402,295 20,652,329 2,801,169 4,721,978 3,467,31817 2016-17 29,977,559 22,659,094 3,044,603 5,583,637 4,067,13818 2017-18 32,383,021 24,471,242 3,331,363 6,749,678 4,662,32319 2018-19 35,783,281 27,413,644 3,722,943 7,499,468 5,054,70920 2019-20 38,878,480 29,409,085 3,712,779 7,057,323 4,455,140==================================================================================================================== Annex-III==================================================================================================================== Log Values Tax collection Tax bases GDP- GDP non Total Dutiable=====================================================================================================================S.No FY DT STM STD FED CD TOTAL (GVA) agr LSM Imports Imports1 2000-01 11.7 11.4 11.1 10.8 11.1 12.9 15.2 14.9 12.9 13.3 12.92 2001-02 11.9 11.4 11.2 10.8 10.8 12.9 15.2 15.0 13.0 13.4 12.93 2002-03 11.9 11.6 11.4 10.7 11.1 13.0 15.3 15.1 13.1 13.5 13.04 2003-04 12.0 11.7 11.4 10.7 11.4 13.2 15.5 15.2 13.3 13.7 13.45 2004-05 12.1 11.9 11.4 10.9 11.7 13.3 15.6 15.4 13.6 14.0 13.76 2005-06 12.3 12.1 11.7 10.9 11.8 13.5 15.9 15.6 13.8 14.4 13.97 2006-07 12.7 12.1 11.8 11.2 11.8 13.6 16.0 15.7 14.0 14.4 13.88 2007-08 12.9 12.2 12.1 11.4 11.9 13.8 16.2 15.9 14.1 14.7 14.19 2008-09 13.0 12.2 12.4 11.7 11.9 14.0 16.3 16.1 14.2 14.8 14.110 2009-10 13.2 12.4 12.5 11.7 12.0 14.1 16.5 16.4 14.3 14.9 14.111 2010-11 13.3 12.6 12.7 11.8 12.1 14.3 16.7 16.4 14.6 15.1 14.212 2011-12 13.5 13.0 12.8 11.7 12.3 14.4 16.8 16.5 14.7 15.2 14.313 2012-13 13.5 13.0 12.9 11.7 12.4 14.5 16.9 16.6 14.7 15.3 14.314 2013-14 13.7 13.1 13.1 11.8 12.4 14.6 17.0 16.7 14.9 15.3 14.415 2014-15 13.8 13.2 13.2 12.0 12.6 14.8 17.1 16.8 14.9 15.4 14.816 2015-16 14.0 13.4 13.3 12.1 12.9 15.0 17.1 16.8 14.8 15.4 15.117 2016-17 14.1 13.5 13.3 12.2 13.1 15.0 17.2 16.9 14.9 15.5 15.218 2017-18 14.2 13.6 13.4 12.3 13.3 15.2 17.3 17.0 15.0 15.7 15.419 2018-19 14.2 13.6 13.4 12.4 13.4 15.2 17.4 17.1 15.1 15.8 15.420 2019-20 14.2 13.7 13.5 12.4 13.3 15.2 17.5 17.2 15.1 15.8 15.3=====================================================================================================================Buoyancy Estimates based on 20 years data===================================================================================================================== DT STM STD FED CD TOTAL 1.13 0.92 1.11 0.77 0.90 1.04Copyright Business Recorder, 2021