As per Lawkidunya, In Pakistan, the scope of sales tax is defined under the Sales Tax Act, 1990. Here are the key aspects:

Taxable Supplies in Sales Tax Act, 1990

1. Goods: Sales tax is applicable on the sale and supply of all goods, except those exempted under Section 13 of the Sales Tax Act, 1990.
2. Services: Sales tax is also applicable on the provision of services, including:
– Advertising services
– Architectural and engineering services
– Catering services
– Construction services
– Consulting services
– Insurance services
– IT services
– Telecommunication services
– Transportation services

Exempt Supplies in Sales Tax Act, 1990

Certain goods and services are exempt from sales tax, including:

1. Agricultural produce: Unprocessed agricultural produce, such as wheat, rice, cotton, and sugarcane.
2. Medicines: Medicines and pharmaceutical products.
3. Poultry feeds: Poultry feeds and fertilizers.
4. Computer software: Computer software and hardware.
5. Exported goods: Goods exported from Pakistan.
6. Diplomatic missions: Goods and services supplied to diplomatic missions and international organizations.

Zero-Rated Supplies in Sales Tax Act, 1990

Certain goods and services are zero-rated, meaning they are taxable at a rate of 0%, including: