The Sales Tax Act 1990 in Pakistan is a federal law that imposes a tax on the sale and supply of goods and services, as well as on imported goods. The Act was enacted to replace the Sales Tax Act 1951 and came into force on November 1, 1990.

Sales Tax is a tax levied by the Federal Government under the Sales Tax Act, 1990, on sale and supply of goods and on the goods imported into Pakistan. Sales Tax on services is levied by the Federal Government under The Islamabad Capital Territory (Tax on Services) Ordinance, 2001.

Key Provisions of Sales Tax

– Tax Rate: The standard rate of sales tax is 16% of the value of supplies, although some items are chargeable at 18.5% or 21%.

– Scope: Sales tax applies to all goods, except those exempted under Section 13 of the Sales Tax Act, 1990, such as computer software, poultry feeds, medicines, and unprocessed agricultural produce.

– Registration: Every person making a taxable supply in Pakistan must be registered under the Sales Tax Act, although some exemptions apply.

– Returns: Registered persons must file a return by the 15th of each month regarding the sales made in the last month.

Amendments of Sales Tax

The Sales Tax Act 1990 has undergone several amendments since its enactment, including changes to tax rates, exemptions, and registration requirements. Download