Sales Tax

Sales Tax is collected on goods under the Sales Tax Act, 1990. Provincial Ordinances levy sales tax on certain services, however this provincial tax on services is also collected in the mode and manner defined in the Sales Tax Act, 1990 and both are administered by the federal Sales Tax department.

Standard rates of sales tax have been prescribed in the Act, however on certain commodities higher rates have also been levied through notifications (statutory regulatory orders (SROs)) under provisions of the Act.

Zero-rating and exemptions from sales tax are given in the Fifth Schedule and the Sixth Schedule to the Sales Tax Act, 1990. Zero-ratings are also given in Sales Tax General Orders, especially on consumption of electric power and natural gas by industrial consumers. Likewise, besides the Sixth Schedule, various exemption schemes have also been declared through notifications (SROs).

Procedure and documentation for registration, payment, collection, repayment of tax and other ancillary functions to give effect to the provisions of the Act and Ordinances have mainly been prescribed in the Sales Tax Rules and the Sales Tax Special Procedures.

On some sectors, commodities or persons, the law prescribes certain minimum level of value addition or tax assessment on fixed or minimum value. List of notifications related to valuation can be searched.

Sales Tax is administered and managed by Medium and Large Taxpayers’ Units and Regional Tax Officers. In order to find various Taxpayers’ Units and their contact information, please click here.