Who exactly is entitled to sales tax exemption under Schedule C of the Sales Tax (Persons Exempted From Payment Of Tax) Order 2018?

Sales tax exemption under Schedule C is granted to a registered manufacturer for the purchase of raw materials, components, and packaging or packing materials for use in the manufacturing of finished taxable goods.

This facility is provided to a registered manufacturer to avoid double taxation on manufactured taxable goods.
 

Refer to the table below for details of the exemptions available for the persons specified in the Items under Schedule C:

Categories of raw materials, components, and packaging or packing materials used in manufacturing that are eligible for the exemption are as follows:

1. Raw materials and components 
These must be used directly in the manufacturing process and will be physically incorporated into the finished product.

2.  Packaging or packing materials

• These must be materials for filling or wrapping finished goods in factories such as boxes, cartons, containers, crates, cases, and bandages. For example:
• Materials such as paper strips, straws, plastic foam, etc. used to condense the items packed into boxes and containers
• Crates, cases, containers, and other packaging or packing materials used to transport finished goods that are returnable, provided they are included in the sale price of the goods
• Labels for the identification of finished goods attached to bottles, cans, etc.