Proposed amendments to Finance Bill

The following is the full text of amendments which, according to Finance Minister Dr Hafeez Shaikh, are required to be made in Finance Bill 2012: I wish to move the following further amendments in the Finance Bill, 2012, namely:
1. in clause 13
(1) after sub-clause (4), the following new provision shall be added, namely:
(4A) in section 22, in sub-section 13), in clause (a), for the word "one" the word "two" shall be substituted.";
(2) in sub-clause (11),
(a) after paragraph (a), a new provision shall be added, namely.
"(aa) in subsection (1), after the word 'of" appearing for the second time, the words and comm "extension, expansion or" shall be inserted;
(b) in paragraph (b), in sub-paragraph (4),-
(i) after the word "investment" appearing for the first time, the comma and words ", through hundred per cent new equity", shall be inserted; and
(ii) at the end of sub-paragraph (4), propose to be amended as aforesaid, the following shall be added, namely:
"For the purpose of this section the term 'new equity" shall have the same meaning as defined in sub-section (7) of section 65E.";
(3) after sub-clause (17), the following new provision shall be inserted, namely:
"(17A) in section 113,-
(a) in sub-section (1), in clause (e) for the word "one" the words and hyphen" one-half" shall be substituted."
(b) in sub-section (2), in clause (b) for the word "one" the words and hyphen" one-half' shall be substituted."
(4) in sub-clause (32),-
(a) after paragraph (b), the following new provision shall be added, namely:-
"(ba) after sub-section (2) propose to be mended as aforesaid, the following new provision shall be added:
(2A) Every prescribed person making a payment in full part including a payment by way of advance to a permanent establishment in Pakistan of a on-resident person-
(I) for the sale of goods;
(ii) for the rendering of or providing service and
(iii) on the execution of a contract, other than a contract for the sate of goods or the rendering of or providing services, shall, at the time of m king the payment, deduct tax from the gross amount payable (including sales tax, if any) at the rate specified in Division II of Part Ill of the First Schedule".
(b) in paragraph (c), for the figures and brackets '(2A)" the figures and brackets "(2AA) shall be substituted;
(5) after sub-clause (53), the following new provision shall be added, namely:-
"(53A) after section 236B, the following new provision shall be added;
236C. Advance Tax on sate or transfer of immovable Property (1) Any person responsible for registering or attesting transfer of any immovable property shall at the time of registering or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule to the Income Tax Ordinance, 2001;
(2) The advance tax collected under sub-section shall be adjustable; and
(3) The advance tax under this section shall not be collected in the case of Federal Government, Provincial Government or a Local Government."
(6) in sub-clause (54),-
(i) In paragraph (I), in sub-paragraph ( ), in clause (iv), in sub-clause (a), for the Table, the following shall be substituted.
(ii) In paragraph (I), sub-paragraph (b) shall be omitted.
(ii) in paragraph (II), in Part IIA, for the fig re and sign "1%", the figures and sign "0.5%" shall be substituted;
(iii) in paragraph (IV) after sub-paragraph), a new provision shall be added, namely
"(c) after Division IX, a new Division shall b added, namely:
"Division X
Advance tax on sale or transfer of immoveable property
The rate of tax to be collected under section 236C shall be 0.5% of the gross amount of the consideration received."
(7) in sub-clause (58), in paragraph (I), for t e provision the following provisions shall be substituted, namely:-
"Provided that this Option shall be available subject to withdrawal of appeals, references and petitions on the issue of tax rate pending before any appellate forum;
Provided further that the outstanding tax liability created under this Ordinance upto tax year 011 is paid by the 30th June 2012;
(8) In clause (16), in sub-clause (2), in paragraph (c), after sub-paragraph (I), the following new provision shall be inserted.
"(ia) in clause (b), the words "to or" shall be omitted and shall be I deemed to have been so omitted with effect from 1st July, 2008."

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S. No    Taxable Income               Rate of tax

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1          0 to 400,000/-          0%

2          400,000 to 750,000      5% of the amount exceeding

                                   Rs 400,000/-

3          750,000 to l,500,000    Rs 17,500 +10% of the amount exceeding

                                   Rs 750,000/-

4          1,500,000 to 2,000,000  Rs 95,000+15% of the amount exceeding

                                   Rs 1,500,000/-

5          2,000,000 to 2,500,000  Rs 175,000+17.5% of the amount exceeding

                                   Rs 2,000,000/-

6          2500,000 and above      Rs 420,000 +20% of the amount exceeding

                                   Rs 2,5000,000/-"

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