(1) Subject to the provisions of this Act, there shall be charged, levied and paid a tax known as sales tax at the rate of fifteen per cent of the value of--

(a) taxable supplies made in Pakistan by a registered person in the course or furtherance of any taxable activity carried on by him; and

(b) goods imported into Pakistan.

(1A) Where taxable supplies are made in Pakistan to a person other than a registered person there shall be charged, levied and paid a further tax at the rate of three per cent of the value -in addition to the rate specified in sub-section (1), clause (c) of sub-section (2), and sub-section (4) and (5):

Provided that the aforesaid three per cent further tax shall not be charged, levied and paid if the said taxable supplies are made.-

(1)    by a person registered as a retailer; or

(2)    by any registered person to a person whose income is not liable to tax under the Income Tax Ordinance, 1979 (XXXI of 1979) but has deducted income tax at source under sub-section (4) of section 50 of the said Ordinance;

(3)    by a registered person on the supply of-

(i)    electrical energy;

(ii)    natural gas;

(iii)    petroleum gases including liquified petroleum gas; and

(iv)    petroleum products.

(2)    Notwithstanding the provisions of sub-section (1),

(c)    taxable supplies specified in the Third Schedule shall be charged to tax at the rate of fifteen per cent of the retail price which alongwith the amount of sales tax shall be legibly, prominently and indelibly printed or embossed by the manufacturer on each article, packet, container, package, cover or label, as the case may be;

(3)    The liability to pay the tax shall be,--

(a)    in the case of supply of goods in Pakistan, of the person making the supply, and

(b)    in the case of goods imported into Pakistan, of the person importing the goods.

(3A) Notwithstanding anything contained in clause (a) of sub-section (3), the Federal Government may, by a notification in the official gazette, specify the goods in respect of which the liability to pay tax shall be of the person receiving the supply.

(4)    The Federal Government may, in addition to or in lieu of levying and collecting the tax under sub-section (1), levy and collect such fixed amount of tax on any goods or class of goods to be payable by any registered person or class of registered persons, supplying such goods or class of goods, in such mode, manner and at time, and subject to such conditions and limitations as it may specify by a notification in the Official Gazette.

(5)    The Federal Government may, in addition to the tax levied under sub-section (1) and (1A), clause (c) of sub-section (2) and sub-section (4), levy and collect such extra amount of tax not exceeding fifteen per cent of the value of such goods or class of goods and on such persons or class of persons, in such mode, manner and at time, and subject to such conditions and limitations as it may, by rules, prescribed.