As per Lawkidunya, In Pakistan, zero-rated supplies refer to taxable supplies that are charged at a zero percent tax rate under Section 4 of the Sales Tax Act, 1990. This means that no sales tax is payable on these supplies, and in some cases, a refund may also be available.

Zero-rated supplies typically include goods and services that are essential or critical to the economy, such as:

– Exported Goods: Goods exported from Pakistan are zero-rated, meaning no sales tax is payable on them.
– Agricultural Products: Certain agricultural products, such as wheat, rice, and cotton, may be zero-rated.
– Medicines and Pharmaceuticals: Medicines and pharmaceutical products may also be zero-rated.
– Textile Goods: Textile goods, such as fabrics, yarns, and threads, may be zero-rated.

It’s essential to note that while zero-rated supplies are not subject to sales tax, they may still be subject to other taxes or regulations.