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Sales Tax on Import:Sales Tax Chargeable on Import into PakistanEvery importer is required to pay sales tax on taxable goods at the rate of 15% at the time of importation. "Taxable Goods" means all goods other than those which have been exempted from Sales Tax. The 6th Schedule of the Sales Tax Act, 1990 describes such goods on which Sales Tax is exempted. The Sales Tax in respect of goods imported into Pakistan shall be paid by the importer at the same time as making payment of customs duty. Click here to see list of exempted goods from sales tax The Sales Tax on imported goods is chargeable on assessed import value of the goods. "Assessed import value" means the value of imported goods determined under section 25 of the Customs Act, 1969 (IV of 1969), including the amount of customs duties and federal excise duty, if any, levied thereon; Every importer is required to get himself registered with the sales tax department. For registration, Form ST-1 is required to send to the local sales tax registration office via post with acknowledgment due(courier is preferbale). The local registration office shall transmit filled up applications to the Central Registration Office based in CBR Islamabad. The previous requirements of furnishing supporting documents have been done away now there is no need to attach any document with the application. The Central Registration having on line access to database of NTN as well as of NADRA shall verify the particulars declared in the application with database. On verification, it shall generate and issue registration certificate to the applicant directly on his given address. Click here to download sales tax registration application (ST-1) In general, Sales Tax is chargeable at the rate of 15% but the section 4 of the Sales Tax Act, 1990 provide that the goods specified in the said section shall be charged to sales tax at the rate of zero per cent: (0%). Click here to see list of items chargeable on zero rated sales tax Every commercial importer shall pay Sales Tax in Value Addition Mode. "commercial importer" means an importer who imports goods for the purpose of further supply to other persons and is registered as commercial importer whether exclusively or otherwise; "value addition" means the difference between the assessed import value of the goods and the value of supply for which the goods, in the same state, are supplied by the importer. A commercial importer shall pay sales tax on supplies of imported goods, at the rate of 15%, on a value addition of not less than ten per cent, through a challan in triplicate, at the same time as making payment of customs duty and sales tax in the Goods Declaration (GD) for such imported goods, calculated as shown in the Example below: EXAMPLE: (a) Value of imported goods determined under section 25 of the Customs Act, 1969 (IV of 1969) = Rs. 100.00 (b) Customs duty e.g. ( @20% ) = Rs. 20.00 (c) Assessed import value ( = a + b ) = Rs. 120.00 (d) Sales tax ( @15% ) payable on bill of entry = Rs. 18.00 (e) Value of supplies, with value addition of 10% [ = c + ( c x 10 ¸100) ] = Rs. 132.00 (f) Value addition on which sales tax is payable ( = e - c ) = Rs. 12.00 (g) Sales tax on value addition ( = f x 15 ¸100 ) (payable on treasury challan); = Rs. 1.80
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