The government Wednesday introduced the concept of provisional assessment of offshore assets under the Finance Supplementary (Second Amendment) Act, 2019 with legal backing to the payment of refund through promissory notes. Under the Finance Supplementary (Second Amendment) Act, 2019 issued here on Wednesday, provisional assessment may be made in case of an offshore asset not declared earlier if such asset is discovered by the Commissioner or any department or agency of the federal or provincial government.
As per the Act, the sales tax refunds payable under this Act may be paid through promissory notes, instead of paying sales tax refunds through cheques or electronic advice to State Bank of Pakistan (SBP), in the mode and manner and carrying such features as laid down in the Tenth Schedule to Act. The refund shall be paid in the aforesaid manner to the claimants who opt for payment in such manner.
About the date of effectively of the Finance Supplementary (Second Amendment) Act, 2019, the purpose of this bill is to give effect to the fiscal stabilization objective of the Government and shall come into force on the next day of assent given to this Act by the President except clause 2 (2) (ii) which shall have effect from 31st March, 2019 and clauses 4(1), 4(2), 4(12)(A)(b), 4(12)(B), 4(12)(C)(d), 4(12)(C)(f) and 4(13)(A) which shall have effect from July 1, 2019.
According to the Finance Supplementary (Second Amendment) Act, 2019, where an offshore asset of any person, not declared earlier, is discovered by the Commissioner or any department or agency of the federal government or a provincial government, the Commissioner may at any time before issuing any assessment order under section 121 or amended assessment order under section 122, issue to the person a provisional assessment order or provisional amended assessment order, as the case may be, for the last completed tax year of the person taking into account the offshore asset discovered, it added.
Under the Finance Supplementary (Second Amendment) Act, 2019, the government has also issued a special procedure for small traders and shopkeepers. The federal government may, by notification in the official Gazette, prescribe special procedure for scope and payment of tax, filing of return and assessment in respect of such small traders and shopkeepers, in such cities or territories, as may be specified therein.
The duties on import of cars and jeeps above 1800cc would increase by 5-10 percent - from 20pc to 25pc for up to 3000cc and from 25 to 30pc for above 3000cc. Moreover, 10 percent excise duty has been imposed on import of cars and jeep engines exceeding 1800cc to discourage luxury imports. Moreover, the government has reduced duty rates or removal of regulatory duty on import of raw material/inputs for 135 tariff lines meant for plastic, footwear, tanning, leather, home appliances, diapers and chemical sectors. Most of these steps would come into force on March 31, 2019. Regulatory duty was also announced for removal of input materials of around 200 tariff lines for manufacturing of automobile parts by local vendors.
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