Sales Tax Exemption on Certain Machinery

SALES TAX EXEMPTION ON CERTAIN MACHINERY Notification No. S.R.O. 1073(I)/81, dated 30th September, 1981.--In exercise of the powers conferred by section 7 of the Sales Tax Act, 1951 (III of 1951), the Federal Government is pleased to exempt from the tax payable under the said Act on the machinery manufactured in Pakistan which has been supplied against payment in foreign exchange in Pakistan to public sector projects, financed by the International Bank for Reconstruction and Development, the Asian Development Bank or foreign government and other aid agencies. Definition of machinery:- Machinery operated by power of any description (excluding agricultural machinery or implements imported into Pakistan) such as is used in any industrial process, including the generation, transmission and distribution of power, or used in processes directly connected with the extraction of minerals and timber, construction of buildings, roads, dams, bridges and similar structures and the manufacture of goods; Apparatus and appliances, including metering and testing apparatus and appliances specially adapted for use in conjunction with machinery, specified in item (i) above; Mechanical and Electrical control and transmission gear adapted for use in conjunction with machinery as specified in item (i) above; Component parts, included spare parts of machinery as specified in items (i), (ii) and (iii) above, identifiable as for use in or with such machinery.