Exemption from Sales Tax on certain Services
The Government of Balochistan has announced exemption from the Balochistan Sales Tax on certain health related services during the period of COVID-19 outbreak.
In this regard, Notification No. BRA/BSTS/12/2019 dated 07’ April’ 2020 has been issued by the Balochistan Revenue Authority [BRA], whereby Balochistan Sales Tax applicable on certain services has been exempted. This exemption is valid till 30’ June’ 2020 only. Sales tax rates shall revert to the normal rates, as prevailing before issuance of this Notification, from 1’ July’ 2020. The health services on which exemption has been allowed by BRA is presented in the Table given at Annex-A.
If you require our assistance in understanding the specific implications of this Alert to your business, please feel free to contact us.
Muzammal Rasheed
Chief Executive / Partner
muzammalr@enfoque.com.pk
Laeeq Siddique
Partner
laeeqs@enfoque.com.pk
Amendment in Second Schedule – Balochistan Sales Tax on Services (BSTS)
| S. # | Tariff Heading | Description of Taxable Services | Existing Rate of Tax | Updated Rate of Tax till 30’ June’ 2020 |
| 1 | 9815.1000 | Medical practitioners and consultants. | 15% | Exempt |
| 2 | 9815.9100 | Healthcare consultants. | 15% | Exempt |
| 3 | 9817.1000 | Medical diagnosing of patients including X-Rays, CT Scan, M.R. Imaging, Ultrasound, etc. | 15% | Exempt |
| 4 | 9817.2000 | Pathological laboratories. | 15% | Exempt |
| 5 | 9817.3000 | Radiological laboratories. | 15% | Exempt |
| 6 | 9817.4000 | Scientific laboratories. | 15% | Exempt |
| 7 | 9822.1000 | Fumigation services. | 15% | Exempt |
| 8 | 9822.3000 | Janitorial services. | 15% | Exempt |