Items Exempt From The Sale Tax
In Pakistan, the Sales Tax Act 1990 outlines the items that are exempt from sales tax under Sixth Schedule. These items are essential goods and services that are considered vital for the welfare of the general public.
1. Basic food items
Basic food items such as flour, rice, lentils, and fresh fruits and vegetables are exempt from sales tax. This exemption ensures that these essential items remain affordable for the general public.
2. Healthcare services
Healthcare services provided by hospitals, clinics, and medical practitioners are also exempt from sales tax. This includes diagnostic tests, medical procedures, and medicines prescribed by doctors.
3. Education services
Education services provided by schools, colleges, and universities are exempt from sales tax. This includes tuition fees, examination fees, and other related charges.
4. Basic utilities
Basic utilities such as electricity, gas, and water are exempt from sales tax. This ensures that these essential services remain affordable for the general public.
5. Textile products
Textile products such as cotton yarn, cotton fabric, and finished textiles are exempt from sales tax. This exemption is aimed at promoting the local textile industry and ensuring that the general public has access to affordable clothing.
6. Agricultural inputs
Agricultural inputs such as seeds, fertilizers, and pesticides are exempt from sales tax. This is aimed at promoting the agriculture sector and ensuring that farmers have access to affordable inputs.
7. Books and newspapers
Books and newspapers are exempt from sales tax. This exemption is aimed at promoting literacy and ensuring that the general public has access to affordable reading material.
In conclusion, the items exempt from sales tax as per Schedule Six of the Sales Tax Act 1990 are essential goods and services that are considered vital for the welfare of the general public. These exemptions ensure that these items remain affordable and accessible for the general public.