Taxation Pakistan

Customs Duty Pakistan

Pakistan Customs is guardian of Pakistani borders against movement of contra band goods and is a facilitator of legitimate trade. A major portion of the government revenue is generated through taxes levied on the goods traded across the borders of Pakistan . It also helps protect the domestic industry of Pakistan, discourage consumption of luxury goods and stimulate development in under-developed areas. 

Main documents of the import process are as follows:

  • Import General Manifest (IGM)
  • Bill of Entry (BOE)

An IGM is generated by a carrier (or his agent), who brings the imported goods into the territory of Pakistan. An importer or his agent in accordance with the documents of import prepares BOE. The goods are then examined and assessed for value by the customs authorities. After payment of customs duty and other taxes at import stage the goods are cleared for home consumption. Removal of goods to a bonded warehouse, provisional release of goods against bank guarantees, trans-shipment of imported goods to up country dry ports and auction of goods not cleared within a stipulated period of time are also part of the import process. 

Main document of the export process are:

  • Shipping Bill
  • Export General Manifest (EGM)

A Shipping Bill is prepared by the exporter or his agent and presented to the customs authorities along with goods to be exported. After examination and valuation of goods, the customs authorities allow the export and rebate is sanctioned against payment of customs duty on the imported raw materials used in the manufacture of such goods. EGM is generated by the carrier (or his agent) taking goods out of Pakistan.

Custom Duty Legislation in Pakistan:

  • Customs Act, 1969
  • Customs Tariff

Sales Tax Pakistan:

Sales Tax Registration Procedure in Pakistan:

The Central Board of Revenue, Pakistan (CBR) has simplified sales tax registration and deregistration procedure through SRO 555(I)/2006. For this purpose, a prospective taxpayer has been given the option to apply for registration directly to the Central Registration Office (CRO) at Central Board of Revenue. This will ensure expeditious registration process by eliminating the step of filing application in the Local Registration Office (LRO) or the Collectorate. Any prospective taxpayer may apply on a registration form to the local registration office. Previous requirements of furnishing supporting documents have been done away with.

Sales Tax Legislation in Pakistan:

  • Sales Tax Act, 1990
  • Sales Tax Registration Rules

Federal Excise Pakistan:

Federal Excise duty is payable on the following:

  • Goods produced or manufactured in Pakistan
  • Goods imported into Pakistan
  • Such goods as the Federal Government may, by notification in the official Gazette, specify, as are produced or manufactured in the non-tariff areas and are brought to the tariff areas for sale or consumption therein
  • Services provided or rendered in Pakistan

Excise Duty Legislation in Pakistan:

  • Federal Excise Act, 2005
  • Federal Excise Rules, 2005