Section 4 - Rates of tax

VAT rates determine tax treatment for scheduled goods, works contracts, packing materials; government may reduce rates.

Section 4 allocates statutory VAT rates by reference to goods in the Second, Third and Fourth Schedules and a residual rate for other goods, prescribes a distinct tax treatment for goods involved in works contracts (with a special rate for printing works) and for declared goods transferred in the same form from contractor to contractee, equates packing materials' tax to the goods' rate, and authorises the Government to reduce rates by notification in the Official Gazette.