The undersigned is directed to say that fertilizers classifiable under chapter 31 of the Pakistan Customs Tariff are exempt from sales tax under Sl.No.17 of the Sixth Schedule to the Sales Tax Act, 1990.

 2. Importers of products like Sodium Nitrate, Ammonium Nitrate, Potassium Chloride are claiming exemption from sales tax on the grounds that these too are classifiable under chapter 31 of P.C.T and provide Nitrogen and Potassium to the soil to maintain its NPK value, a pre-requisite for the growth and fertility of plants. However, the fact remains that these chemical compounds (Sodium Nitrate, Ammonium Nitrate, Potassium Chloride, etc.) are chemical compounds having multiple uses besides being capable of use as fertilizers. 

3. Ministry of Food & Agriculture is requested kindly to advise if it is a policy of the Government to extend the benefits of tax concessions on imported fertilizers to these chemical compounds (Sodium Nitrate, Potassium Nitrate, Potassium Chloride, etc.) too. It may also please be advised as to how the misuse of concession on the non-fertilizer use of these chemical compounds can be checked to avoid loss to the exchequer.