Exemptions under this section +

1. Ship breakers in respect of ships imported after 01 July 2014;
2. Agricultural produce is purchased directly from the grower of such produce subject to production of prescribed forms and certificates
3. Import and subsequent supply of five hundred thousand metric tons of white sugar imported by the Trading Corporation of Pakistan
4. Special purpose vehicle for the purpose of securitization or issue of sukuks.
5. Sui Southern Gas Company and Pakistan LNG Terminal from Sui Northern Gas Pipelines Limited on account of re-gasification charges;
6. Import and subsequent supply of five hundred thousand metric tons of white sugar imported by the Trading Corporation of Pakistan;
7. Manufacturer-cum-exporter subject to certain conditions;
8. A person on account of supply of petroleum product imported by the same person under the Government of Pakistan's deregulation policy of POL products
9. Sale of air tickets by travelling agents, who have paid withholding tax on their commission income
10. A petroleum agent or distributor who is registered under Sales Tax Act, 1990 on account of supply of petroleum products
11. An oil tanker contractor with effect from 1st July 2008, provided that such contractor pays tax @ 2.5%, on the payments for rendering or providing of carriage services
12. The purchase of used motor vehicles from the general public;
13. The provisions of section 153(1) shall not apply in case of payments received by an oil distribution company or an oil refinery;
14. The rate of deduction of withholding tax shall be 1% on local:
    • Sales
    • Supplies
    • Services provided or rendered to the taxpayers falling in the following categories namely:
      1. Textile and articles thereof;
      2. Carpets;
      3. Leather and articles thereof including artificial leather footwear;
      4. Surgical goods;
      5. Sports groups.
15. Persons as recipients of payment, namely:
    • A provincial government;
    • A local authority;
    • Residents of Azad Kashmir and execute contracts in Azad Kashmir only and produce a certificate from the income tax authority;
    • Persons receiving payments exclusively for the supply of prescribed agriculture produce subject to certain conditions;
    • Companies receiving payments for the supply of electricity and gas including companies receiving payments for the transmission of electricity and gas;
    • Companies receiving payments for the supply of crude oil;
    • Hotels and restaurants receiving payments in cash for providing accommodation or food or both;
    • Shipping companies and air carriers receiving payments for the supply of passenger tickets and for the cargo charges of goods transported;
    • Individuals who are not registered under section of the ordinance 181 and receiving payments for the supply of sand, bricks, grit, gravel, crushed stone, soft mud or clay;
    • Artisans, plumbers, electricians, surface finishers, carpenters, painters or daily wagers, receiving payments in respect of services provided to the construction sector including construction of buildings, roads, bridges and other such structures or the development of land, subject to the following conditions:
      1. services rendered by an individual who is not registered as a taxpayer under section 181;
      2. the name, CNIC and address such individual is recorded by the recipient of such service;
      3. payment of such services is made directly to such individual;
16. Fully and partly designed cypher devices, for use within the country as are verified by Cabinet Division (NTISB) with reference to design, quality and quantity
17. A resident person for the supply of such goods as were imported by the same person and on which tax has been paid under section 148;
18. Cotton ginners
19. The payments made on account of sale or supply of goods or providing or rendering of services during project construction and operations;
20. Import and subsequent supply of items with dedicated use of renewable sources of energy like solar and wind etc., even if locally manufactured
21. Traders being individuals having turnover up to Rs. 100 million;
22. Distributors, dealers, wholesalers, and retailers of locally manufactured mobile phone devices as withholding agent;
23. The persons mentioned in Table 1 of clause (66) of Part I of the Second Schedule as recipients of payment. Provided that such persons shall continue to perform functions as withholding and collecting agent under the aforesaid provisions.
24. Import and subsequent supply of items with dedicated use of renewable sources of energy like solar and wind etc., even if locally manufactured (Clause 77 - Part IV of 2nd Schedule)