Clause 3(1)? Seeks to amend section 2 (s) to enable Pakistan Customs
to conduct anti-smuggling operations within
municipal limits.
Clause 3(2) Seeks to amend section 3C of the Customs Act, 1969 to
replace the name of Pakistan Customs Academy (PCA)
with Customs Academy of Pakistan (CAP) to avoid
duplication in nomenclature.
Clause 3(3) Seeks to amend section 7 of the Customs Act, 1969 to
include Provincial Levies and Khasadar Force in the list
of departments which are bound to provide assistance to
Customs whenever requested.
Clause 3(4)(a) Seeks to amend section 19(1) to help implement
agreements of Government of Pakistan with an entity.
Clause 3(4)(b) Seeks to amend 19(5) to give continuity to the
notifications issued under section 19 during
the financial year.
Clause 3(5) Seeks to amend section 25A to consult and not
incorporate straightaway internationally acclaimed
publications, periodicals, bulletins etc. to determine truth,
and accuracy of the declared values. With the proposed
amendment, the proviso to Section 25-A of the Customs
Act, 1969 shall be harmonious with Section 25, 25-A and
the WTO Valuation Agreement.
Clause 3(6) Seeks to amend section 79 to legally bind the owner of
goods to file GDs within three days after arrival of goods
at border Custom stations to ease out congestion.
Clause 3(7) Seeks to amend section 98 to enhance the warehousing
period for perishable items to facilitate the trade.
Clause 3(8) Seeks to amend sub-section (1) of section 139 to facilitate
the passengers travelling as a group who cannot file their
own declarations, by allowing the representative to file
baggage declaration on behalf of the group members.
Clause 3(9)(a) Seeks to amend S.No.1 of the Table of section 156(1) to
rationalize the pitch of penalty for the offense of
(a)invoice and packing list not found inside the container,
and (b) invoice and packing list not uploaded
electronically with the GD, with a view to redress the
grievances of the trade. The National Assembly Standing
Committee on Finance also observed that the current
penalties are very harsh for the trade.
Clause 3(9)(b) Seeks to amend S.No.8 of the Table of section 156(1) to
make penal provisions more stringent in relation
to smuggling of essential commodities.
Clause 3(9)(c) Seeks to amend S.No.9 of the Table of section 156(1) to
make penal provisions more stringent in relation to the
goods imported or exported in contravention of the
restrictions imposed thereon.
Clause 3(9)(d) Seeks to amend S.No.89 of the Table of section 156(1) to
make penal provisions more stringent in relation
to smuggling of goods as defined in section 2(s).
Clause 3(9)(e) Seeks to amend S.No.90 of the Table of section 156(1) to
make penal provisions more stringent in relation to
evasion of duty/taxes and breach of prohibitions
or restrictions.
Clause 3(10) Seeks to add proviso to section 179(2) to provide option
to the respondent to go for adjudication through Customs
Computerized System with a view to reduce the
clearance time and eliminate human interaction.
Clause 3(11) Seeks to amend section 182 to enable Pakistan Customs
to utilize the confiscated conveyance and any other useful
equipment for anti-smuggling operations.
Clause 3(12) Seeks to amend section 185D
to ensure merit in the investigation
of criminal cases.
Clause 3(13) Seeks to insert a new clause in section 194A (1) to
align it with
Chapter 10 of the revised Kyoto Convention of WCO.
Clause 3(14) Seeks to insert a proviso in section 208 to allow
self-filing of GD to the compliant tax payers.
Clause 3(15) Seeks to omit clause (iii) of sub section (2) of section
212B as interpretation of any statute concerning
leviability in respect of ongoing transactions which
otherwise lies in the domain of FBR, falls outside
the purview of Advance Ruling.
Clause 3(16) Seeks to amend First Schedule to the Customs Act, 1969
with the First Schedule to this Act.
Clause 3(17)(A)(i) Seeks to amend in serial 21 of Part-I of Fifth Schedule to
exempt customs duties on import of machinery,
equipment and inputs for manufacturing of solar panels,
inverters and batteries.
Clause 3(17)(A)(ii) Seeks to amend serial 26 of Part-I of Fifth Schedule to
extend the date of duty free imports of plant, machinery
and equipment for setting up of industries in erstwhile
FATA Areas till 30th June, 2024.
Clause 3(17)(B)(i)(a)&(b) Seeks to amend Table-A, Part-II of Fifth
Schedule to delete 01 Active Pharmaceutical Ingredients
(APIs) and included 01 another API in the existing list of
exemption regime.
Clause 3(17)(B)(ii) Seeks to amend Table-C, Part-II of Fifth Schedule to
include 03 medicines in the existing list of
exemption regime.
Clause 3(17)(B)(iii) Seeks to amend Table-D, Part-II of Fifth Schedule to
include 01 raw materials for Pharma packing in
existing list of concessionary regime.
Clause 3(17)(C)(i) Seeks to insert new serial number 9A, to exempt customs
duties on import of seeds for sowing
Clause 3(17)(C)(ii) Seeks to delete serial numbers 44, 56, 63 and 88 in
Part-III, of Fifth Schedule to remove duplication and
streamline the concession / exemption on raw material /
inputs for diaper/sanitary napkins.
Clause 3(17)(C)(iii) Seeks to amend serial number 107 of Part-III of Fifth
Schedule to include specific papers for printing of
Holy Quran.
Clause 3(17)(C)(iv) Seeks to amend serial No. 111 of Part-III, of Fifth
Schedule to streamline the concession / exemption on
raw material / inputs for diaper / sanitary napkins.
Clause 3(17)(C)(v) Seeks to amend serial No. 113 of Part-III, of Fifth
Schedule to rectify the exemption on raw materials /
inputs for hemodialyzers fluid/powder.
Clause 3(17)(C)(vi) Seeks to amend serial No. 119 of Part-III, of Fifth
Schedule to exempt customs duties on import of Organic
composite solvents and thinners for manufacturers of
Butyl Acetate and Dibutyl Orthophthalates.
Clause 3(17)(C)(vii) Seeks to amend serial No. 122 of Part-III, of Fifth
Schedule to include one more input “roasted peanuts” in
the existing list of inputs used in the production Ready to
Use Supplementary Foods (RUSF).
Clause 3(17)(C)(viii) Seeks to amend serial No. 134 of Part-III, of Fifth
Schedule to allow import of PET Scrap on reduced rate
for the manufactures of Polyester Filament Yarn.
Clause 3(17)(C)(ix) Seeks to amend serial No. 151 of Part-III, of Fifth
Schedule to extend concession of customs duty on import
of Flavouring powders for food preparation.
Clause 3(17)(C)(x) Seeks to add new serial No.153 to 159 in Part-III, of Fifth
Schedule to exempt customs duties on import of raw
materials / inputs for manufacturers of Adhesive Tap,
Capacitors, Moulds and Dies, Mining machinery,
Machine Tools and Rice mill machinery and imports by
the exporters of IT and IT enabled services.
Clause 3(17)(D) Seeks to delete the Part-V of Fifth Schedule to align the
Auto Industry Development and Export Policy (AIDEP)
2021-26
Clause 3(17)(E)(i)(ii)&(iii) Seeks to amend Table-II of Part-V(A) to rectify
the PCT codes of electric motors.
Clause 3(17)(F) Seeks to substitute the Part-V(B) of Fifth Schedule to
align the Auto Industry Development and Export Policy
(AIDEP) 2021-26
Clause 3(17)(G) Seeks to amend serial No. 2 of Table-A, of Part-VII, to
include live baby shrimp/prawns/juvenile in the existing
exemption regime for production and breeding. Scope of
exemption also extended for hatcheries
SALES TAX ACT, 1990
Clause 4(1)(a) Seeks to omit the expression “production, transmission
and distribution of electricity,” after the word “include”
in clause (12) of section 2
Clause 4(1)(b) Seeks to omit sub-clause (e) of clause 33 of section 2
Clause 4(1)(c) Seeks to omit sub-clauses (e) and (ga) of clause (43A)
of section 2
Clause 4(2) Seeks to substitute section 30CA
Clause 4(3) Seeks to substitute the words “goods or class of goods as
specified by the Board under sub-section (1) of section
40C” for the words “cigarette packs” in column (1) of
clause (23) of section 33
Clause 4(4)(a) Seeks to insert new serial number 8A after serial number
8 in the Fifth Schedule
Clause 4(4)(b) Seeks to substitute clause (xxv) of serial number 12 of
the Fifth Schedule
Clause 4(4)(c) Seeks to insert the expression “commodities,” after the
words “supplies of” of serial number 21 of the Fifth
Schedule Clause 4(5)(I)(a),(b)& (c) Seeks to substitute
the word “under” for the words “in retail
packing bearing” of serial numbers,
16, 17 and 18 of Table-1 of the Sixth
Schedule
Clause 4(5)(I)(d) Seeks to add Explanation in serial number 121 of Table-1
of the Sixth Schedule
Clause 4(5)(I)(e)&(f) Seeks to substitute the expression “30th June, 2024” for
the expression “30th June, 2023” in Table-I of the
Sixth Schedule
Clause 4(5)(I)(g) Seeks to omit serial numbers 159 and 160 of Table-1
of the Sixth Schedule
Clause 4(5)(I)(h) Seeks to add new serial numbers 175, 176, 177, 178, 179,
180 and 181 after serial number 174 of Table-1 of the
Sixth Schedule
Clause 4(5)(II)(a),(b), (c),
(d),(e),(f),(g)&(h) Seeks to omit the words “in retail
packing” after the word “sold” in serial numbers 32, 34,
35, 36, 37, 39, 41 and 42 of Table-2 of the Sixth
Schedule
Clause 4(6)(a) Seeks to substitute the expression “15%” for the
expression “12%” in serial number 66 of Table-1 of the
Eighth Schedule
Clause 4(6)(b) Seeks to substitute serial numbers 81 and 82 of
Table-1 of the Eighth Schedule
ICT (TAX ON SERVICES) ORDINANCE, 2001
Clause 5(1)(i) Seeking to insert new clause (a) of sub-section (2A) of
section 3
Clause 5(1)(ii) Seeks to insert the expression “and serial number 8A”
after the expression “serial number 2” in clause (b) of
sub-section (2A) of section 3
Clause 5(2)(i) Seeks to substitute serial number 1 of Table-1 of the
Schedule
Clause 5(2)(ii) Seeks to substitute the word “Fifteen” for the word
“Sixteen” in serial number 11 of the Schedule
Clause 5(2)(iii) Seeks to add new serial number 60 after serial number 59
of Table-1 of the Schedule
Clause 5(3) Seeks to substitute serial number 11 of Table-2 of
the Schedule
INCOME TAX ORDINANCE, XLIX OF 2001
Clause 6(1) Seeks to amend section 2 (definitions)
Clause 6(1)(a) Seeks to amend definition of income to include any
amount subject to collection or deduction of tax under
section 236Z
Clause 6(1)(b)(i)&(ii) Seeks to enhance the scope of definition of permanent
establishment by amendment in clause (41)
Clause 6(1)(c) Seeks to broaden the definition of SME by including IT
& IT enabled services and increasing the business
turnover limit to 800 million
Clause 6(2) Seeks to insert new sub-section (5A) in section 4C
Clause 6(3)(i)&(ii) Seeks to add a new clause (lb) in section 39 to add
income from bonus shares issuance as “income from
other sources”
Clause 6(4) Seeks to insert a new section 44A to operationalize the
exemptions and incentives provided under Foreign
Investment (Promotion and Production) Act, 2022
Clause 6(5) Seeks to insert a new section 65I to provide tax credit for
construction of a new house by an individual
Clause 6(6)(a) Seeks to substitute sub-section (1) of section 85 to
elaborate the concept of associates and to include resident
of jurisdiction with zero taxation regime in the ambit
of associate
Clause 6(6)(b) Seeks to add definition of jurisdiction with zero taxation
regime in sub-section (5) of section 85
Clause 6(7) Seeks to add a new charging section 99D to impose an
additional tax up to the rate of fifty percent on any
income, profits on gains for the tax year 2023 and
onwards arising due to economic factors as determined
and notified by the Federal Government.
Clause 6(8) Seeks to enhance the limit in sub-section (4) of section
111 to rupee equivalent of one hundred thousand United
States dollars
Clause 6(9) Seeks to add explanation in clause (c) of sub-section
(2) of section 113
Clause 6(10) Seeks to add a new section 146D for recovery of liability
outstanding under other laws.
Clause 6(11)(i),(ii)and (iii) Seeks to
amend section 147 to clarify and to provide
that tax assessed includes tax payable under section 4C
for the purposes of calculating advance tax payable
Clause 6(12) Seeks to amend sub-section (5A) of section 152 to
provide for automatic issuance of exemption certificate
upon expiry of thirty days of receipt of notice by
the Commissioner
Clause 6(13) Seeks to amend sub-section (3B) of section 154
Clause 6(14) Seeks to relax the condition of filing of sales tax returns
for exporters of IT & IT enabled services
Clause 6(15) Seeks to amend the marginal note of section 164A
Clause 6(16) Seeks to amend sub-section (3) of section 168
consequent to new insertion of sub-section (7) of
section 236Z
Clause 6(17) Seeks to amend clause (b) of sub-section (1) of section
169 consequent to new insertion of sub-section (7)
of section 236Z
Clause 6(18) Seeks to amend clause (b) of sub-section (2) of
section 218
Clause 6(19) Seeks to insert a new section 231AB for deduction of tax
on cash withdrawals from persons not appearing in
the ATL
Clause 6(20) Seeks to insert a new section 231C for collection of tax
from the agency, sponsor or an employer hiring the
services of a foreign domestic worker
Clause 6(21)(a)&(b) Seeks to exempt a non-resident individuals holding POC,
NICOP and CNIC acquiring property through SBP
notified FCVA and NRVA account from collection of
tax under section 236K on purchase of said property
Clause 6(22) Seeks to insert a new section 236Z for collection of tax
on bonus shares issued by a company
Clause 6(23) Seeks to amend the First Schedule to the Income Tax
Ordinance, 2001
Clause 6(23)(A)(1) Seeks to substitute Table in Division IIB of Part-I to
provide income slabs and tax rates for section 4C
Clause 6(23)(A)(2) Seeks to substitute S. No. 4 in the Table in Division IX
of Part I with new Serial Nos. 4 and 5 to provide for
minimum tax rate for listed companies under section
113 at 1%
Clause 6(23)(B) Seeks to amend S. No. 3 in the Table in Part II to provide
rate of collection of advance tax under section 148 for
commercial importers
Clause 6(23)(C)(1)(i), (ii) and (iii) Seeks to amend paragraphs (4), (5)
and (6) of Division II of Part III to provide for increase of
1% in rates of withholding tax by PE of a non-resident on
payments against sale of goods, rendering of services and
contracts under section 152(2A) Clause 6(23)(C)(2)(i),
(ii) and (iii) Seeks to amend sub-paragraph (b) of
paragraph (1), subparagraphs (i) & (ii) of paragraph (2)
and sub-paragraph (ii) & (iii) of paragraph (3) of Division
III of Part III to provide for increase of 1% in rates of
withholding tax by prescribed persons on payments
against sale of goods, rendering of services and contracts
under section 153
Clause 6(23)(C)(3) Seeks to amend S. No. 1 in the table in Division IVA of
Part III for application of reduced rate of 0.25% on
export proceeds of software, IT Services and IT enabled
services for tax year 2024 up to tax year 2026
Clause 6(23)(D) Seeks to increase the rate of advance tax deduction under
section 236Y from 1% to 5% of the gross amount
remitted abroad through credit, debit or prepaid cards
Clause 6(24) Seeks to amend the Second Schedule to the Income
Tax Ordinance, 2001
Clause 6(24)(A)(i) Seeks to insert new entries in Table 1 of sub-clause (1)
of clause (66)
Clause 6(24)(A)(ii) Seeks to extend the limitation of exemption from 30th
day of June 2023 to 30th day of June 2024 on profit and
gains on sale of immoveable property or shares of
Special Purpose Vehicle to any REIT scheme
Clause 6(24)(A)(iii) Seeks to extend the limitation of exemption from 30th
day of June 2023 to 30th day of June 2024 on
any income of any individual domiciled or company and
AOP resident in e Tribal Area forming part of the
Provinces of Khyber Pakhtunkhwa and Balochistan.
Clause 6(24)(A)(iv) Seeks to amend clause (150) of Part I
Clause 6(24)(A)(v) Seeks to insert new clause (154) in Part I to provide tax
holiday to SME setup exclusively as agro based industry
for five years up to tax year 2028
Clause 6(24)(B) Seeks to insert new clauses (21) and (22) in Part III
Clause 6(24)(C)(i) Seeks to add new sub-clause (xlvi) in clause (11A)
of Part IV
Clause 6(24)(C)(ii) Seeks to omit clause (100) of Part IV
Clause 6(24)(C)(iii) Seeks to insert new clauses (121), (122), (123) and
(124) in Part IV
Clause 6(25) Seeks to insert new rule (6DB) in the Fourth Schedule
Clause 6(26) Seeks to insert new rule (4AC) in the Fifth Schedule
Clause 6(27)(a) Seeks to amend rule 7CA in the Seventh Schedule
Clause 6(27)(b) Seeks to insert new rule (7CB) in the Seventh Schedule
Clause 6(27)(c) Seeks to amend sub-rule (1) of rules 7D, 7E and 7F in
the Seventh Schedule
Clause 6(27)(d) Seeks to insert new rule 7G in the Seventh Schedule to
provide reduced rate of on additional advances for IT &
IT enabled services
Clause 6(28) Seeks to insert new rule 4A in the Eighth Schedule to
provide for competition, collection and payment of tax
under section 4C by NCCPL on the amount of capital
gains computed under the Eighth Schedule
Clause 6(29) Seeks to insert new entries in the Table of Thirteenth
Schedule
Clause 6(30)(a) Seeks to substitute rule 2 of the Fourteenth Schedule
Clause 6(30)(b)&(c) Seeks to insert new category at S.No.3 in the Table in
rules 3 and 4 of the Fourteenth Schedule
FEDERAL EXCISE ACT, 2005
Clause 7(1) Seeks to add new clause (e) after clause (d) of
sub-section (1) of section 3
Clause 7(2) Seeks to add new clause (d) after clause (c) of
sub-section (2) of section 29
Clause 7(3) Seeks to add new sub-section (4) after sub-section (3) of
section 40
Clause 7(4)(a) Seeks to add new serial numbers 60 and 61 after serial
number 59 of Table-I of the First Schedule
Clause 7(4)(b) Seeks to substitute serial number 11 of Table-II of First
Schedule
Clause 7(5)(a) Seeks to add new serial number 26 after serial number 25
of Table-I of the Third Schedule
Clause 7(5)(b) Seeks to add new serial number 15 after serial number 14
of Table-II of the Third Schedule The Statement of
estimated Tax Expenditure of the Federal Government as
required under Section 8 of Public Finance Management
Act 2019 is appended at the end of thisbill as Annex-A.
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Copyright Business Recorder, 2023
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