AN

ORDINANCE

further to amend the Sales Tax Act, 1990

WHEREAS it is expedient further to amend the Sales Tax Act, 1990, for the purposes hereinafter appearing;

            AND WHEREAS the National Assembly and the Senate stand suspended in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitutional Order No. 1 of 1999;

            AND WHEREAS the President is satisfied that circumstances exist which render it necessary to take immediate action;

            NOW, THEREFORE, in pursuance of Proclamation of Emergency of the fourteenth day of October, 1999, and Provisional Constitutional Order No. 1 of 1999, as well as Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance: -

1.                  Short title and commencement.¾ (1) This Ordinance may be called the Sales Tax (Amendment) Ordinance, 2000.

(2)               It shall come into force at once.

2.         Amendment of section 2, Sales Tax Act, 1990.¾ In the Sales Tax Act, 1990, hereinafter referred to as the said Act, in section 2, in clause (34), for the words “or retail tax” the comma and the words, “retail tax or enlistment tax” shall be substituted.

3.         Amendment of section 3, Sales Tax Act, 1990.¾ In the said Act, in section 3, in sub-section (1A), in its proviso, in clause (4), after the word “tax”,  at the end, the words “at the rate of two per cent” shall be added.

4.         Amendment of section 3A, Sales Tax Act, 1990.¾ In the said Act, in section 3A, in sub-section (1), in the first proviso,¾

(a)                in clause  (i) the word “and”, at the end, shall be omitted;

(b)               in clause (ii), for the colon at the end, the semicolon and the word “; and” shall be substituted; and

(c)        after clause (ii), amended as aforesaid, the following new clause shall be added, namely -

“(iii) a manufacturer engaged in the manufacture or production and supply of the goods specified in the Third Schedule.”

5.         Insertion of new section 3AAA, Sales Tax Act, 1990.¾ In the said Act, after section 3AA, the following new section shall be inserted, namely: -

“3AAA Enlistment Tax.¾ (1) Subject to the provisions of this section, there shall be charged, levied and paid enlistment tax at the rate of one per cent of the taxable turnover by a retailer who is making taxable supplies in the course of furtherance of any taxable activity provided that total turnover of such retailer is, or exceeds, one million rupees in any period during the last twelve months.

(2)        Any retailer who intends to pay enlistment tax under sub-section (1) shall apply for enlistment to the Collector in such form and manner as the Board may specify.

(3)               Any retailer who is already registered or enrolled may opt to pay tax under this section provided that he surrenders his registration certificate or, as the case may be, enrolment certificate at the time of applying for enlistment under sub-section (2).

(4)               The provisions of this section shall stand repealed on 30th day of June, 2001.”.

6.         Amendment of section 13, Sales Tax Act, 1990.¾  In the said Act, in section 13, sub-section (5) shall be omitted.

7.         Amendment of section 27, Sales Tax Act, 1990.¾ In the said Act, in section 27, in clause (a), for the words and figure “under section 14” the words “or enrolled under this Act” shall be substituted.

8.         Amendment of section 45, Sales Tax Act, 1990.¾ In the said Act, in section 45, after the second proviso, the following explanation shall be added, namely: -

“Explanation.¾ For the purpose of this section, tax means the principal amount of sales tax other than further tax or additional tax and in a case where only further tax, whether or not with additional tax, is involved, the amount of further tax and in all other cases additional tax.”.

9.         Amendment of section 52, Sales Tax Act, 1990.¾ In the said Act, in section 52, after the word “person”, occurring for the second time, the words “having such qualifications as may be prescribed” shall be inserted.

10.       Amendment of section 73, Sales Tax Act, 1990.¾ In the said Act, in section 73, ¾

(a)        after the word “transaction”, the brackets and words “(excluding utility bills)” shall be inserted;

(b)        for the word  “January” the word “July” shall be substituted; and

(c)                after the word “order” the words “or any other banking instrument showing transfer of the payment in favour of seller from the business account of the buyer” shall be inserted.

11.       Amendment of Sixth Schedule, Sales Tax Act, 1990.¾ In the said Act, in the Sixth Schedule, in column (1),¾

(a)                S.No.19 and the entries relating thereto in columns (2) and (3) shall be omitted;

(b)        against S.No.53, in column (3) for the existing entries the following shall be substituted, namely: -

“2302.1000, 2306.1000, 2306.7000 and 2309.9000”.

 

 

MUHAMMAD RAFIQ TARAR

PRESIDENT.