The scheme of zero-rating of five major export oriented sectors has been revamped to introduce a uniform rate (reduce sales tax @ 5 % instead of earlier rate of 4 % and 6%). This SRO will take effect from 1st January, 2012. This SRO is being issued in rescission of SRO 1058(I)/2011, dated 23-11-2011.
SRO 1125(I)/2011Special procedures and schemes
SRO 1125(I)/2011 is a Sales Tax SRO dated 31 December 2011, listed by FBR as "The scheme of zero-rating of five major export oriented sectors has been revamped to introduce a uniform rate (reduce sales tax @ 5 % instead of earlier rate of 4 % and 6%). This SRO will take effect from 1st January, 2012. This SRO is being issued in rescission of SRO 1058(I)/2011, dated 23-11-2011.".
The text below was extracted automatically from the text layer of the official PDF. Line breaks and table layout may differ from the original, and where FBR scanned the paper and added a machine-read text layer, that layer can contain misread characters. Check the official PDF before relying on any wording or figure.
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GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE, ECONOMIC AFFAIRS,
STATISTICS AND REVENUE
(REVENUE DIVISION)
*******
Islamabad, the 31st December, 2011
S.R.O.1125(I)/2011. In exercise of the powers conferred by clause (c) of section
4 read with clause (b) of sub-section (2) and sub-section (6) of section 3, clause (b) of
sub-section (1) of section 8 and section 71 of the Sales Tax Act, 1990, and in
supersession of its Notification No. S.R.O. 1058(I)/2011, dated the 23rd November,
2011, the Federal Government is pleased to notify the goods specified in column (2) of
the Table below under the PCT heading numbers mentioned in column (3) of the said
Table, including the goods or class of goods mentioned in the conditions stated in this
notification, to be the goods on which sales tax shall, subject to the said conditions be
charged at zero-rate or, as the case may be, at the rate of five per cent, wherever
applicable, to the extent and in the manner as specified in the aforesaid conditions,
namely:-
TABLE
S.No. Description of goods PCT heading No.
(1) (2) (3)
01. Leather and articles thereof including artificial leather 41.01 to 41.15, 64.03,
64.04, 6405.1000, Footwear
6405.2000 and other
respective headings
02. Textile and articles thereof excluding monofilament, sun Chapter 50 to Chapter 63
shading, nylon fishing net, other fishing net, rope of and other respective
polyethylene and rope of nylon, tyre cord fabric headings excluding
5407.2000, 5608.1100,
5608.1900, 5608.9000.
03. Carpets 57.01 to 57.05
04. Maize (corn) starch 1108.1200
05. Mucilages and thickness, whether or not modified, derived 1302.3210, 1302.3290,
from locust beans locust bean seeds or guar seeds 1302.3900
06. Sports goods 9504.2000, 9506 and other
respective headings
07. Surgical goods Respective headings
08. Emery powder/grains 2513.2010
09. Magnesium oxide 2519.9010
10. Coning oil 2710.1991
11. Spin finish Oil 2710.1998
12. Antimony oxide 2825.8000
13. Sodium bromate 2829.9000
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2830.1010,
14. Sodium sulphide and sodium hydrogen sulphide 2830.1090
15. Sodium dithionite 2831.1010
16. Sodium sulphite and sodium hydrosulphide 2832.1010,
2832.1090
17. Phosphinates (hypophosphites) and phosphonates 2835.1000
(phosphates)
18. Sodium dichromate 2841.3000
19. Hydrogen per oxide 2847.0000
20. p-Xylene 2902.4300
21. Trichloroethylene 2903.2200
22. Ethylene Glycol (MEG) 2905.3100
23. Di-ethylene glycol 2909.4100
24. Ethyl glycol 2909.4490
25. Tri-ethylene Glycol 2909.4990
26. Glutar aldehyde 2912.1900
27. Formic acid 2915.1100
28. Sodium formate 2915.1210
29. Acetic acid 2915.2100
30. Sodium acetate 2915.2930
31. Acrylic acid and its salts 2916.1100
32. Esters of Methacrylic acid 2916.1400
33. Oxalic acid 2917.1110
34. Pure terephthalic acid (PTA) 2917.3610
35. Glycolic acid and their esters 2918.1800
36. Other phosphoric esters and their salts 2919.9090
37. Dyes intermediates 2921.0000
2922.0000
2923.0000
2924.0000
2927.0000
2933.0000
2934.0000
38. DMF (Dimethyl Formamide) 2924.1990
39. Acrylonitrile 2926.1000
40. Other organic derivatives of hydrazine or of hydroxylamine 2928.0090
41. Tanning extracts of vegetable origin; tannins and their 3201.1000
salts, ethers, esters and other derivatives 3201.2000
3201.9020
3201.9090
42. Synthetic organic tanning substances, inorganic tanning 3202.1000
substances, tanning perpetrations, whether or not 3202.9010
containing natural tanning substances; enzymatic
3202.9090
preparations for pre- tanning
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Disperse dyes and preparations based thereon. 43. 3204.1100
44. Acid dyes and preparations based thereon 3204.1200
45. Basic dyes and preparations based thereon 3204.1300
46. Direct dyes and preparations based thereon 3204.1400
47. Indigo Blue 3204.1510
48. Vat dyes and preparations based thereon 3204.1590
49. Reactive dyes and preparations based thereon 3204.1600
50. Pigments and preparations based thereon 3204.1700
51. Dyes, sulphur 3204.1910
52. Dyes, synthetic 3204.1990
53. Synthetic organic products of a kind used as fluorescent 3204.2000
brightening agents.
54. Other synthetic organic colouring matter 3204.9000
55. Pigments and preparations based on titanium dioxide. 3206.1900
56. Other colouring matter and other preparations 3206.4900
57. Granules, flakes, powder of glass (others) 3207.4090
58. Prepared water pigments of a kind used for finishing 3210.0020
Leather
59. Cationic surface active agents 3402.1210
3402.1220
3402.1290
60. Non-ionic surface active agents 3402.1300
61. Surface active preparations and cleaning preparations 3402.9000
excluding detergents
62. Preparations for the treatment of textile material, leather, 3403.1110
fur skins or other material 3403.1120
3403.1990
3403.9110
3403.9190
63. Spin finish oil 3403.9131
64. Artificial waxes and prepared waxes 3404.9010
65. Other artificial waxes 3404.9090
66. Electro polishing chemicals 3824.9060
67. Other glues (printing gum) 3505.2090
68. Shoe adhesives 3506.9110
3506.9110
69. Hot melt adhesive 3506.9190
70. Enzymes 3507.9000
3702.4300
71. Photographic film, with silver halide emulsion (for textile 3702.4400
use)
72. Sensitizing emulsions (for textile use) 3707.1000
73. Fungicides for leather industry 3808.9220
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3809.9110
74. Preparation of a kind used in textile or like industry 3809.9190
75. Preparation of a kind used in leather or like industries 3809.9300
76. Compound plasticizers for rubber or plastics 3812.2000
77. Antimony triacetate 3815.1910
78. Palladium catalyst 3815.9000
79. Electrolyte salt 3824.9060
80. Polymers of vinyl acetate (in aqueous dispersion) 3905.1200
81. Vinyl acetate copolymers: in aqueous dispersion 3905.2100
82. Polymers of vinyl alcohol 3905.3000
83. Other vinyl polymers 3905.9990
84. Other acrylic polymers 3906.9030
85. Acrylic polymers in primary forms 3906.9090
86. Polyethylene terephthalate-Yarn grade, and its waste 3907.6010
87. Nylon Chips (PA6) 3908.1000
88. Polyurethanes 3909.5000
89. Silicones in primary form 3910.0000
90. Cellulose nitrates nonplasticised 3912.2010
91. Other cellulose nitrates 3912.2090
92. Carboxymethyl cellulose and its salts 3912.3100
93. Alginic acids, its salts and esters 3913.1000
94. Nylon tubes 3917.3910
95. Artificial leather 3921.1300
96. Synthetic leather grip 3926.9099
97. Natural rubber latex 4001.1000
98. Technical specialized natural rubber 4001.2200
99. Rubber latex 4002.1100
100. Synthetic rubber SBR 1502 latex 4002.1900
101. Butadiene rubber 4002.2000
102. Thermo-plastic rubber (T.P.R.) 4002.9900
103. Vulcanized rubber thread and cord 4007.0010
4007.0090
104. Leather shearing-finish leather with wool 4302.1910
105. Articles of apparel and clothing accessories of fur skin 4303.9000
106. Artificial fur and articles thereof 4304.0000
107. English willow cleft (wood) 4404.1000
108. Cork Granules 4501.9000
109. Cork sheet 4504.1010
110. Satin Finishing Wheels 6804.2100
111. Carbon Fiber 6815.1000
112. Glass fiber sleeves 7019.9010
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113. Forging of surgical and dental instruments 7326.1920
114. Nickel rotary printing screens 7508.9010
115. Hooks for footwear 8308.1010
116. Eyes and eyelets for footwear 8308.1020
117. Tubular or bifurcated rivets 8308.2000
118. Strings 8308.9090
119. Bladders and covers of inflatable balls 9506.9919
120. Press-fasteners, snap fasteners and press studs 9606.1000
121. Buttons of plastics not covered with textile material 9606.2100
122. Buttons of base metal not covered with textile materials 9606.2200
123. Studs 9606.2910
124. Buttons 9606.2920
125. Slide fasteners 9607.1100
9607.1900
126. Wood-pulp (dissolving grade) 4702.0000 if imported by
manufacturers of viscose
staple fibre for use in the
manufacturing of viscose
staple fibre.
127. Cotton linter 1404.2000
128. Sequins 3926.9099
Conditions
(i) The benefit of this notification shall be available to every such person doing
business in textile (including jute), carpets, leather, sports and surgical goods
sectors, who is registered as:-
(a) manufacturer;
(b) importer;
(c) exporter; and
(d) wholesaler;
(ii) on import by registered manufacturers of five zero-rated sectors mentioned in
condition (i) above, sales tax shall be charged at the rate of zero per cent on
goods useable as industrial inputs;
(iii) the goods imported by, or supplies made to manufacturers, other than
manufacturers mentioned in condition (i) above, shall be charged, sales tax
at the rate of five per cent;
iv) the commercial importers, on import of goods useable as industrial inputs,
shall be charged sales tax at the rate of two per cent alongwith one per cent
value addition tax at the import stage, which will be accountable against their
subsequent liabilities arising against supply of these goods to the zero-rated
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sector at the rate of zero per cent or to non zero-rated sectors or
unregistered persons at the rate of five per cent as the case may be. The
balance amount shall be paid with the monthly sales tax return or in case of
excess payment shall be carried forward to the next tax period;
(v) the import of finished goods ready for use by the general public, shall be
charged to tax at the rate of five per cent and value addition tax at the rate of
one per cent;
(vi) supplies of finished products of the sectors specified in condition (i) shall, if
sold to the retailers (both registered and unregistered) or end consumers
shall be charged to sales tax at the rate of five per cent ad val;
(vii) supplies of goods, usable as industrial inputs, to registered persons of five
zero-rated sectors up to wholesale stage shall be charged to tax at the rate of
zero per cent;
(viii) the registered persons who are solely or otherwise engaged in the retail
business of these goods or products shall pay sales tax at the rate of five per
cent ad val on their retail sales and shall be entitled to input tax adjustment.
They shall not be required to pay any other sales tax leviable on their such
retail transactions, however, such retailers shall be liable to pay turnover tax
as prescribed under Chapter III of the Sales Tax Special Procedure Rules,
2007, and the goods supplied at the rate of five per cent shall not constitute
part of turnover on which the aforesaid turnover tax is to be paid;
(ix) the registered manufacturers who process goods owned by unregistered
persons shall charge sales tax at the rate of five per cent on the processing
charges received by them, provided that no such tax shall be charged from
the registered principals;
(x) a registered person who has consumed any other inputs acquired on
payment of sales tax, whether covered under this notification or not, shall be
entitled to input tax adjustment or, as the case may be, refund in respect of
the supplies made by him either at the rate of zero per cent or five per cent or
sixteen per cent ad val as the case may be;
(xi) the registered manufacturers shall be entitled to adjustment of input tax paid
on machinery, parts, spares and lubricants acquired by them for their own
use;
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(xii) supply of electricity and gas to the registered manufacturers or exporters of
five zero-rated sectors mentioned in condition (i), shall be charged sales tax
at the rate of zero per cent in the manner specified by the Board;
(xiii) the benefit of this notification shall be available to such registered persons
who appear on active taxpayers list (ATL) on the website of Federal Board of
Revenue; and
(xiv) this notification shall apply from:
(a) ginning onwards in case of textile sector;
(b) production of PTA or MEG for synthetic sector;
(c) regular manufacturing in case of carpets and jute products;
(d) tannery in case of leather sector; and
(e) organized manufacturing in case of surgical and sports goods
2. This notification shall take effect on and from the 1st day of January, 2012.
[C.NO.1(140)C(RGST)/2011 (Pt-VI)]
(Shahid Hussain Asad)
Additional Secretary
Which SROs does the title refer to?
- SRO 1058(I)/201123 November 2011Supersession of Notification No. SRO 1012(I)/2011 and introduction of scheme of zero rating of five major export oriented sector as it was earlier introduced under SRO 283(I)/2011, dated 1st April, 2011.
Which later SROs refer to this one?
SROs whose FBR title names SRO 1125(I)/2011, usually to amend or rescind it.
- SRO 110(I)/201931 January 2019Amendment in S.R.O 1125(I)/2011, dated the 31st December, 2011
- SRO 996(I)/201811 August 2018Amendment in S.R.O 1125(I)/2011
- SRO 881(I)/201813 July 2018Amendments in S.R.O No. 1125(1)/2011, Dt 31-12-2011
- SRO 794(I)/201826 June 2018Amendment in SRO 1125(I)/2011, dated 31/12/2011
- SRO 777(I)/201821 June 2018Amendment in SRO 1125(I)/2011 dt 31/12/2011
- SRO 1070(I)/201723 October 2017Amendment in Notification No. S.R.O 1125(I)/2011 dated 31-12-2011
- SRO 868(I)/201731 August 2017Amendment in S.R.O 1125(I)/2011 dated 31-12-2011
- SRO 584(I)/20171 July 2017Amendment in SRO 1125(I)/2011
- SRO 36(I)/201723 January 2017Amendment in S.R.O 1125(I)/2011, dated the 31st December,2011
- SRO 491(I)/201630 June 2016Amendment to SRO 1125(I)/2011 dated 31.12.2011 - sales tax on export-oriented sectors
- SRO 486(I)/201530 June 2015Amendment S.R.O 1125(I)/2011 dt. 31.12.2011
- SRO 575(I)/201426 June 2014Federal Government is pleased to direct that the following further amendments shall be made in its Notification No. S.R.O. 1125(I)/2011, dated the 31st December, 2011,
- SRO 420(I)/20144 June 2014Amendment in Notification No. S.R.O 1125(I)/2011, Dated 31.12.2011.
- SRO 898(I)20134 October 2013Federal Government is pleased to direct that the following further amendments shall be made in its Notification No. S.R.O. 1125(I)/2011 dated the 31st December, 2011
- SRO 682(I)/201326 July 2013Amendments in S.R.O 1125(I)/2011, Dated December 31,2011
- SRO 504(I)/201312 June 2013To exclude finish articles, goods and made-ups from the purview of SRO 1125(I)/2011, dated 31.12.2011.
- SRO 221(I)/201319 March 2013To exempt raw cotton and ginned cotton from sales tax as SRO 1125(I)/2011, dated 31.12.2011 now deals with spinning stage onwards.
- SRO 220(I)/201319 March 2013To rationalize the zero-rating regime under SRO 1125(I)/2011, dated 31.12.2011 which was earlier modified vide SRO 154(I)/2013, dated 28.02.2013
- SRO 154(I)/20131 March 2013Amendment in Notification No SRO 1125(I)/2011 dated 31-12-2011.
- SRO 593(I)/20121 June 2012Amendment in SRO 1125(I)/2011, dated 31.12.2011
Related Sales Tax SROs on special procedures and schemes
- SRO 774(I)/201227 June 2012FBR has issued a new scheme for waiver of default surcharge and penalty in cases of illegal input tax adjustment subject to condition ......
- SRO 592(I)/20121 June 2012Amendment in Sales Tax Special Procedure Rules, 2007
- SRO 332(I)/201231 March 2012SRO 332(I)/2012 dated 31.03.2012 is an amendment Rule 58 1 of the Sales Tax Special Procedure Rules, 2007.
- SRO 1(I)/20122 January 2012Amendment in Sales Tax Special Procedure Rules, 2007
- SRO 1058(I)/201123 November 2011Supersession of Notification No. SRO 1012(I)/2011 and introduction of scheme of zero rating of five major export oriented sector as it was earlier introduced under SRO 283(I)/2011, dated 1st April, 2011.
- SRO 1012(I)/20114 November 2011The scheme of zero-rating of five major export oriented sectors has been revamped