SALES TAX CIRCULAR NO. 10 OF 1994,

DATED 27TH OCTOBER, 1994

 SUBJECT:--        VALUE OF IMPORTED GOODS FOR THE PURPOSES OF LEVY OF SALES TAX.

            A question has arisen regarding value for the purpose of Sales Tax in respect of imported goods where concessionary rate of Customs duty is applicable. There were two views on the subject. One view was that Sales Tax should be levied on value of imported goods plus customs duty actually paid on the basis of concessionary rate of duty. The other view was that the value of supply means the value plus duty leviable under the statute irrespective of the duty actually paid/payable under the concessionary notification. 

2.         The matter has been examined in consultation with Justice Division. After perusing the relevant provisions of the Sales Tax Act, 1990, including clause  (d) if sub-section (31) of section 2 of the Act, it is ruled that the value of supply would mean the value determined under section 25 or 25-B of the Customs Act, 1969, plus the Customs duty actually paid.

(AKHTAR ALI)

Secretary (STP)