Scope and Payment of Tax Chapter- 05
national security, natural disaster, national food security in emergency situations and
implementation of bilateral and multilateral agreements.
Examples of zero rated items:
Supply to diplomats, diplomatic missions and privileged persons
Supply of locally produced plant and machinery (as notified by the government), raw
materials and components for further manufacture of goods in EPZ.
Supply of duty free shops and to airlines, PNSC etc for use in aircrafts / ships proceeding
outside Pakistan.
Import or supply made to Gawadar Special Economic Zone excluding vehicles.
Packing materials used for zero rated supplies. Electric and gas consumed by manufacturer-exporters.
Other items specified under various notifications e.g. SRO 670 dated 18- 07 - 2013 specified
certain zero rated goods subject to certain conditions including exercise books, pens,
pencils, cheese, butter, bicycles etc.
However this section shall not apply in respect of supply of the goods which:
(i) are exported, but have been or are intended to be re-imported into Pakistan; or
(ii) have been entered for export but are not exported; or
(iii) have been exported to a country specified by the Federal Government (export of
cigarettes to Afghanistan, Iran or China [SRO 1232(I)/90 dated 01 - 12 - 1990] and export
to Afghanistan by land route [SRO 190 dated 02- 04 - 2002].- Change in the rate of tax (u/s 5)
If there is a change in the rate of tax-
(a) a taxable supply made by a registered person shall be charged to tax at such rate as is in
force at the time of supply;
(b) imported goods shall be charged to tax in case the goods are:
(i) entered for home consumption, on the date on which a goods declaration is
presented;
(ii) cleared from warehouse, on the date of goods declaration for clearance.
Provided that where a goods declaration is presented in advance of the arrival of the conveyance
by which the goods are imported, the tax shall be charged as is in force on the date on which the
manifest of the conveyance is delivered.
Provided further that if the tax is not paid within seven (7) days of the presenting of the goods
declaration under section 104 of the Customs Act, the tax shall be charged at the rate as in force
on the date on which tax is actually paid.- Time and manner of payment (u/s 6):
The tax in respect of goods imported into Pakistan shall be charged and paid at the same time
as if it were a customs duty.
The tax in respect of taxable supplies shall be paid at the time of filing the return.
Notwithstanding anything contained in any other law for the time being in force, including but not
limited to the Protection of Economic Reforms Act, 1922, and notwithstanding any decision or
judgement of any forum, authority or court whether passed, before or after the promulgation of
the Finance Act, 1998, referred to in sub section (1) shall be incorporated in and shall be
deemed to have always been so incorporated in this Act and no person shall be entitled to any
exemption from or adjustment of or refund of tax on account of the absence of such a provision
in this Act, or in consequence of any decision or judgement of any forum, authority or court
passed on that ground or on the basis of the doctrine of promissory estoppels or on account of