Section 4: Zero rating

4. Zero rating.– Notwithstanding the provisions of section 3 194[except those of sub-section (1A)], 195[...] the following goods shall be charged to tax at the rate of zero per cent:-- [(a) goods exported, or the goods specified in the Fifth Schedule;] (b) supply of stores and provisions for consumption aboard a conveyance proceeding to a destination outside Pakistan as specified in section 24 of the Customs Act, 1969 (IV of 1969); 196[(c) such other goods, as the Federal Government may specify by notification in the official Gazette, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements:”; and] 197[(d) omitted.] Provided that nothing in this section shall apply in respect of a supply of goods which – (i) are exported, but have been or are intended to be re-imported into Pakistan; or (ii) have been entered for export under Section 131 of the Customs Act, 1969 (IV of 1969), but are not exported 198[***] 199[; or] (iii) 200[have been exported to a country specified by the Federal Government, by Notification in the official Gazette 201[:] 202[Provided further that the Federal Government may, by a notification in the official Gazette, restrict the amount of credit for input tax actually paid and claimed by a person making a zero-rated supply of goods otherwise chargeable to sales tax.]

Effective date: 1990-11-01

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