Accurate calculation of ST: North, south zones made to determine highest retail price of cement

The Federal Board of Revenue (FBR) has divided Pakistan into two zones ie North Zone and South Zone, for determination of the highest retail price of cement sold in retail packing for accurate calculation of sales tax.
In this regard, the FBR issued a sales tax general order (STGO) 94 of 2014 here on Saturday for the notification of zones for determination of highest retail price of cement sold in retail packing. According to the STGO, the FBR has notified following zones for the purpose of determination of highest retail price of any brand or variety of cement sold in retail packing: North Zone comprises Punjab; Khyber Pakhtunkhwa; Federally Administered Tribal Area; Azad State of Jammu & Kashmir and Northern Areas (Gilgit-Baltistan). South Zone comprised Sindh and Balochistan, FBR added.
Experts said the retail price of cement varied from one to another province depending on the cost of transportation and other factors. Moreover, when region-wise price of cement has been fixed, sales tax would be charged on highest retail price of cement sold in retail packing. Maximum price of cement fixed in the region would be considered for the purpose of imposition of sales tax. In this regard, the highest retail price of cement would be fixed for both the zones for the purpose of calculation of sales tax of cement sold in retail packing.
Following is the text of the notification issued here on Saturday: In exercise of powers confirmed by proviso to sub-section (27) of section 2 read with clause (a) of sub-section (2) of section 3 and S.No 33 and entries relating thereto of the Third Schedule to the Sales Tax Act, 1990, the FBR is pleased to specify two zones, namely, North Zone and South Zone comprising areas as mentioned in the table below for the purpose of determination of highest retail price of any brand or variety of cement sold in retail packing:-
North: Punjab Province; Khyber Pakhtunkhwa Province; Federally Administered Tribal Area; Azad State of Jammu & Kashmir and Northern Areas (Gilgit-Baltistan).
South: Sindh Province and Balochistan Province, notification added.