CNo. 1(51)STT/96. Dated 17th February, 2003

SALES TAX EXEMPTION ON IMPORT OF RAW MATERIALS FOR THE MANUFACTURE OF PHARMACEUTICAL PRODUCTS OFFICE MEMORANDUM SUBJECT: SALES TAX EXEMPTION ON IMPORT OF RAW MATERIALS FOR THE MANUFACTURE OF PHARMACEUTICAL PRODUCTS CNo. 1(51)STT/96. Dated 17th February, 2003:- The undersigned is directed to refer to the subject noted above and to enclose a copy of letter No. PPMA/A-1 l/B-81/2003/534, dated 30th January, 2003 received from Pakistan Pharmaceutical Manufacturers Association (PPMA). 2. Under SRO-21 l(I)/2002, dated 6th April, 2002, the raw materials for the basic manufacture of pharmaceutical active ingredients and for manufacture of pharmaceutical products are exempt from payment of the whole of sales tax leviable thereon provided that where such raw materials are imported then only those raw materials shall be entitled to exemption under this notification if they are: (a) specified in Notification No. SRO-372(I)/2002, dated the 15th June, 2002; or (b) liable to customs duty not exceeding ten per cent ad valorem in the First Schedule to the Customs Act, 1969. subject to the same conditions as are stipulated in the Notification specified in clause (a). 3. PPMA has complained that the offices of Ministry of Health are not issuing Forms-I II for the raw materials which are not included in the SRO- 372(I)/2002 but are otherwise exempt under SRO-21 l(I)/2002. As a result release of such raw materials is held up. 4. Ministry of Health is therefore requested to prepare a list of such raw materials, which are exempt under SRO-21…