A BILL to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2019, and to amend certain laws WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2019, and to amend certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:-
1 Short title, extent and commencement.„ (1) This Act may be called the Finance Act, 2019.
(2) It extends to the whole of Pakistan.
(3) It shall come into force on the first day of July, 2019 Act by the President of Islamic Republic of Pakistan.
2 Amendment of the Stamp Act, (II of 1899). In the Stamp Act, 1899 (II of 1899), as in force in the Islamabad Capital Territory,-
(a) after section 27, the following new section, shall be inserted, namely:-
"27A Valuation of immovable property.- (1) Where any instrument chargeable with ad valorem duty under Articles 23,31 or 33 of Schedule-I relates to an immovable property, the value of the immovable property shall be calculated according to the valuation table notified by the district collector in respect of immovable property situated in the locality.
(2) Where an instrument, mentioned in sub-section (1), relates to immovable property consisting of land and structure, it shall state the value of the land and structure separately and the value of the structure stated in the instrument shall, subject to the provisions of this Act, be accepted.
(3) Where the value of immovable property stated in an instrument to which sub-section (1) applies is more than the value fixed according to the valuation table, the value declared in the instrument shall be accepted as value for the purposes of stamp duty.
(4) Where the value given in the valuation table notified under sub-section (1), when applied to any immovable property, appears to be excessive, the deputy commissioner or commissioner (revenue) or any other person notified by the Government for this purpose may, on application made to him by the aggrieved person, determine its correct value and for that purpose the provisions of sections 31 and 32 shall apply as nearly as possible."; and
(b) for Schedule I, the following shall be substituted, namely:-
SCHEDULE 1
STAMP-DUTY ON INSTRUMENTS
[See sections 3 and 27A]
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Description of Instruments Proper Stamp-duty
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(1) (2)
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1. ACKNOWLEDGMENT of a debt exceeding twenty
rupees in amount, or value, written or signed by, or on
behalf of, a debtor in order to supply evidence of such
debt in any book other than a banker's pass-book or on a
separate piece of paper when such book or paper is left in
the creditor's possession; provided that such
acknowledgement does not contain any promise to pay
the debt or any stipulation to pay interest or to deliver any
goods or other property:-
(a) where such amount does not exceed two
thousand rupees One Rupee
(b) where such amount exceeds two thousand
rupees but does not exceed ten thousand rupees. Two Rupees
(c) where such amount exceeds ten thousand
rupees
Five Rupees
2. ADMINISTRATION BOND, including a bond given
under sections 291, 375 and 376 of the Succession Act,
1925 (XXXIX of 1925), section 6 of the Government
Savings Banks Act, 1873 (V of 1873) -
(a) where the amount does not exceed Rs
1,000; The same duty as on a
Bond (No. 17) for such
(b) in any other case amount.
One hundred Rupees
3. ADOPTION-DEED that is to say, any instrument (other One hundred Rupees
than a will) recording an adoption or conferring or purporting to
confer an authority to adopt.
ADVOCATE, see ENTRY AS AN ADVOCATE (No. 32).
4. AFFIDAVIT, including an affirmation or declaration Fifty Rupees
in the case of persons by law allowed to affirm or declare
instead of swearing, except affidavit or declaration in
writing when made -
EXEMPTIONS:- Affidavit or declaration in writing when
made-
(a) as a condition of enrolment under the
Pakistan Army Act, 1952 (XXXIX of 1952),
or the Pakistan Air Force Act, 1953 (VI of
1953) or the Pakistan Navy Ordinance,
1961 (XXXV of 1961);
(b) for the immediate purpose of being filed or
used in any Court or before the officer of
any Court; or
(c) for the sole purpose of enabling any person
to receive any pension or charitable
allowance.
5. AGREEMENT OR MEMORANDUM OF AN
AGREEMENT-
(a) if relating to the sale of a bill of exchange; Two Rupees.
(b) if relating to the sale of Government
security; One Rupee for every Rs
10,000 or part thereof of
the value of the security,
subject to a maximum of
(c) if relating to the sale of a share in an One Hundred Rupees.
incorporated company or other body One Rupee for every
corporate; rupees 5,000 or part
thereof of the value of the
(d) If not otherwise provided for. share.
EXEMPTIONS: Agreement or memorandum of an Fifty Rupees
agreement
(a) for or relating to the purchase of or sale of
goods or merchandise exclusively, not
being a note or memorandum chargeable
under No.45;
(b) (b) made in the form of tenders to the
Federal Government for or relating to any
loan.
AGREEMENT TO LEASE See LEASE (No.37).
6. AGREEMENT RELATING TO DEPOSIT OF TITLE-
DEEDS, PAWN OR PLEDGE, that is to say, any
instrument evidencing an agreement relating to
(1) the deposit of title-deeds or instruments
constituting or being evidence of the title to
any property whatever (other than marketable
security), or
(2) the pawn or pledge of movable property,
where such deposit, pawn or pledge has
been made by way of security for the re-
payment of money advanced or to be
advanced by way of loan or an existing or
future debt-
(a) if such loan or debt is repayable on
demand or more than three months
from the date of the instrument
evidencing the agreement;
(i) in the case of banking
companies or other financial
institutions, when the One-fifth of one percent
entire finance is not based on that is to say, 0.2% of the
interest; and loan amount subject to a
(ii) in any other case maximum of one hundred
rupees.
One-fifth of one percent
(b) if such loan or debt is repayable not
that is to say, 0.2% of the
more than three months from the
loan amount.
date of such instrument;
(i) in the case of banking
companies or other financial
institutions, when the entire
One-tenth of one percent
finance is not based on
that is to say 0.1% of the
interest; and
loan subject to a
(ii) in any other case
maximum of fifty
thousand rupees.
One-tenth of one percent
that is to say 0.1% of the
loan amount.
7. APPOINTMENT IN EXECUTION OF A
POWER where made by any writing not being a will-
(a) of trustees
(b) of property, movable or immovable Fifty Rupees.
One hundred Rupees.
8. APPRAISEMENT OR VALUATION made
otherwise than under an order of the Court in the
course of a suit-
(a) where the amount does not exceed Rs The same duty as on a
1,000; Bond (No. 17) for such
amount.
(b) in any other case One Hundred rupees.
EXEMPTIONS:-
(a) Appraisement or valuation made for the
information of one party only, and not being
in any manner obligatory between parties
either by agreement or operation of law.
(b) Appraisement, of crop for the purpose of
ascertaining the amount to be given to a
landlord as rent.
9. APPRENTICESHIP-DEED, including every writing One Hundred rupees.
relating to the service or tuition of any apprentice
clerk or servant, placed with any master to learn any
profession, trade or employment not
being ARTICLES OF CLERKSHIP (No. 11).
EXEMPTIONS:- Instrument of apprenticeship executed
by a Magistrate under the Apprenticeship Ordinance,
1962 (LVI of 1962), or by which a person is apprenticed
by or at the charge of any public charity.
10. ARTICLES OF ASSOCIATION OF A
COMPANY-
(a) Where the company has no share capital or Fifty rupees.
the nominal share capital does not exceed
Rs 2,500.
(b) where the nominal share capital exceeds One hundred rupees.
Rs 2,500 but does not exceed Rs
1,00,000;
(c) where the nominal share capital exceeds Two hundred rupees.
Rs 1,00,000 but does not exceed Rs
10,00,000;
(d) Where the nominal share capital exceeds Five hundred rupees.
Rs 10,00,000.
EXEMPTIONS:- Articles of any Association and not
formed for profit and registered under section 42 of the
Companies Act, 2017 (XIX of 2017).
See also MEMORANDUM OF ASSOCIATION OF A
COMPANY (No.41).
11. ARTICLES OF CLERKSHIP OR contract whereby One Thousand rupees.
any person first becomes bound to serve as a clerk
in order to his admission as an attorney in any High
Court.
ASSIGNMENT, See CONVEYANCE
(No.24),TRANSFER (No.64) and TRANSFER OF
LEASE (No.65), as the case may be. ATTORNEY,
See ENTRY AS AN ATTORNEY (No. 32), AND
POWER OF ATTORNEY (No.50).
12. AIR TICKETS issued by any Airline--- Twenty five rupees per
(i) for domestic flights;
ticket.
(ii) for international flights Two hundred and fifty
rupees per ticket.
13. AUTHENTICATED DECLARATIONS that is to say Five thousand rupees per
declaration of newspaper, periodicals or printing declaration
presses authenticated by legally competent
Authority.
Explanation I. The duty shall be paid by a declarant.
Explanation II. The declaration shall not be authenticated
unless the duty is paid.
14. AWARD , that is to say, any decision in writing by Three percent of the
an arbitrator or umpire, not being an award amount or value of the
directing a partition, on a reference made property to which the
otherwise than by an order of the Court in the award relates as set forth
course of a suit. in such award.
15. BILL OF EXCHANGE as defined by section 2 (2)
not being BOND, bank note or currency note-
(a) where payable otherwise than on demand
but not more than one year after date or
sight-
(i) if drawn singly Two rupees for every one
thousand rupees or part
thereof of the amount of
the Bill
(ii) if drawn in set of two or more, for One rupees for every one
each part of the set. thousand rupees or part
thereof of the amount of
(b) where payable more than one year after the Bill.
date or sight.
(i) If drawn singly
Three rupees for every
(ii) If drawn in set of two for each part of one thousand rupees or
the set part thereof the amount of
Bill.
(iii) If drawn in set of three for each part Two rupees for every one
of the set thousand rupees or part
thereof the amount of Bill.
One rupees for every one
thousand rupees or part
thereof the amount of Bill.
16. BILL OF LADING (including a through bill of Ten rupee.
lading).
Note -If a bill of lading is drawn in parts, the
proper stamps therefor must be borne
by each one of the sets.
EXEMPTIONS:-
(a) Bill of the lading when the goods therein
described are received at a place within the
limits of any port as defined under the Ports
Act, 1908 (XV of 1908), and are to be
delivered at another place within the limits
of the same port.
(b) Bill of lading when executed out of
Pakistan and relating to property to be
delivered in Pakistan.
17. BOND as defined by section 2 (5) not being a
DEBENTURE (No.27) and not being otherwise
provided for by this Act, or by the Court Fees Act,
1870 (VII of 1870)-
(i) where the amount or value secured does Fifteen Rupees
not exceed five thousand rupees
(ii) where it exceeds five thousand rupees for Fifteen Rupees
every additional amount of five hundred
rupees or part thereof
See ADMINISTRATION BOND (No.2), BOTTOMRY
BOND (No.18), CUSTOMS BOND (No.27).
INDEMNITY BOND (No.36), RESPONDENTIA BOND
(No.58) SECURITY BOND (No.59).
EXEMPTIONS:- Bond when executed by any person
for the purpose of guaranteeing that the local income
derived from private subscription to a Charitable
dispensary or hospital or any other object of public utility
shall not be less than a specified sum per mensum.
18. BOTTOMRY BOND, that is to say, any instrument The same duty as on a
where by the master of a seagoing ship borrows Bond (No.17) for the same
money on the security of the ship to enable him to amount.
preserve the ship or prosecute her voyage.
19. CANCELLATION, instrument of (including any Five Hundred rupees.
instrument by which any instrument previously
executed is cancelled), if attested and not
otherwise provided for.
See also RELEASE (No.57), REVOCATION OF
SETTLEMENT (No.60-B), SURRENDER OF LEASE
(No.63), REVOCATION OF TRUST (No.66-B).
20. CERTIFICATE OF SALE (in respect of each Four percent of the
property put up as a separate lot and sold) granted consideration equal to the
to the purchaser of any property sold by public amount of the purchase
auction by a Civil or Revenue Court, or Collector or money.
other Revenue Officer-
21. CERTIFICATE OR OTHER DOCUMENT Fifty rupees
evidencing the right or title of the holder thereof or
any other person, either to any shares, scrip or
stock in or of any incorporated company or other
body corporate, or to become proprietor of
shares, scrip or stock in or of any such company
or body.
See also LETTER OF ALLOTMENT OF SHARES
(No.38).
22. CHARTER PARTY, that is to say, any instrument Fifty rupees.
(except an agreement for the hire of a tug-
steamer) whereby a vessel or some specified
principal part thereof is let for the specified
purposes of the charterer, whether it includes a
penalty clause or not.
23. COMPOSITION-DEED, that is to say, any One Hundred rupees.
instrument executed by a debtor whereby he
conveys his property for the benefit of his creditors,
or whereby payment of a composition or dividend
on their debts is secured to the creditors, or
whereby provision is made for the continuance of
the debtor's business under the supervision of
Inspector or under letters of licence for the benefit of
his creditors.
24. CONVEYANCE as defined by section 2 (10) not Four percent of the value of
being a TRANSFER charged or exempted under the property
No. 64
25. COPY OR EXTRACT certified to be a true copy
or extract by or by order of any public officer and
not chargeable under the law for the time being
in force relating to court-fees-
(i) if the original was not chargeable with Five rupees.
duty or if the duty with which it was
chargeable does not exceed four rupees;
(ii) in any other case
EXEMPTION:- Ten rupees.
(a) Copy of any paper which a public officer is
expressly required by law to make or furnish
for record in any public office or for any
public purpose;
(b) Copy of, or extract from, any register
relating to births, baptisms, 16 aming,
dedications, marriages (divorces), deaths or
burials.
26. COUNTERPART OR DUPLICATE of any
instrument chargeable with duty and in respect
of which the proper duty has been paid-
(a) if the duty with which the original The same duty as is
instrument is chargeable does not exceed leviable on the original.
four rupees;
(b) in any other case Ten rupees.
EXEMPTION:-
Counterpart of any lease granted to cultivator
when such lease is exempted from duty.
27. CUSTOMS BOND- The same duty as on a
(a) where the amount does not exceed Rs Bond (No.17) for such
1,000; amount.
One Hundred rupees.
(b) in any other case
28. DEBENTURE OR PARTICIPATION TERM One-twentieth of one
CERTIFICATE OR TERM FINANCE CERTIFICATE OR percent that is to say 0.05%
ANY OTHER INSTRUMENT OF REDEEMABLE of the face value
CAPITAL OTHER THAN
A. COMMERCIAL PAPER whether or not a Subject to a maximum of
mortgage debenture or Participant Term Certificate, one million rupees
or Term Finance Certificate or any other instrument
of redeemable capital being a marketable security
transferable or by endorsement or by separate
instrument of transfer or by delivery.
Explanation-The term "Debenture" includes any
interest coupons attached thereto, but the amount of
such coupons shall not be included in estimating the
duty.
EXEMPTION:-
A debenture issued by an incorporated company or
other body corporate in terms of a registered mortgage-
deed, duly stamped in respect of the full amount of
debentures to be issued thereunder, whereby the
company or body borrowing makes over, in whole or in
part, their property to trustees for the benefit of the
debenture, holders, provided that the debentures so
issued are expressed to be issued in terms of the said
mortgage-deed.
See also BOND (No.17), and SECTIONS 8 and 55.
DECLARATION OF ANY TRUST See TRUST (No.66).
29. DECREE, RULE OF A COURT OR AN ORDER
OF A COURT based on mutual consent of parties in
cases involving transfer on an immovable property Four percent of the value of
including sale, exchange, gift or mortgage, declaring or property.
conferring a right in or title to an immovable property.
Explanation: Value in this Article, means value of
property in accordance with the valuation table as
notified by the Collector or where valuation table is not
available the average sale price of a property of similar
nature in the same revenue estate or locality in the
preceding year as may be determined by Collector.
30. DELIVERY-ORDER IN RESPECT OF GOODS, Ten Rupees.
that is to say, any instrument entitling any person therein
named, or his assigns or the holder thereof, to the
delivery of any goods lying in any dock or port, or in any
ware-house in which goods are stored or deposited on
rent or hire, or upon any wharf such instrument being
signed by or on behalf of the owner of such goods upon
the sale or transfer of the property therein when such
goods exceed in value twenty rupees.
DEPOSIT OF TITLE-DEED. See AGREEMENT relating
to DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE
(No.6).
DISSOLUTION OF PARTNERSHIP. See
PARTNERSHIP (No.48).
31. DIVORCE-Instrument of, that is to say any One Hundred rupees.
instrument by which any person effects the dissolution
of his marriage.
DOWER-Instrument of. See SETTLEMENT (No.60).
DUPLICATE. See COUNTERPART (No.26).
32. ENTRY AS AN ADVOCATE, OR ATTORNEY
ON THE ROLL OF ANY HIGH COURT- under
the Legal Practitioners and Bar Councils Act,
1973 (XXXV of 1973)-
(a) in the case of an Advocate One thousand five hundred
rupees.
(b) (b)in the case of an Attorney Two thousand rupees.
33. EXCHANGE OF PROPERTY- Instrument of- The same duty as is
EXTRACT. See COPY (No.25) leviable on a Convey-ance
(No.24) for a consideration
equal to the value of the
property of greatest value
as set forth in such
instrument.
34. FURTHER CHARGE-Instrument of, that is to
say, any instrument imposing a further charge on
mortgaged property-
(a) when the original mortgage is one of the The same duty as on a
description referred to in clause (a) of Conveyance (No.24) for a
Article No.40 (that is, with possession); consideration equal to the
amount of the further
charge secured by such
instrument.
(b) when such mortgage is one of the
description referred to in clause (b) of
Article No.40 (that is, without
possession)-
(i) if at the time of execution of the The same duty as on a
instrument of further charge Conveyance (No.24) for a
possession of the property is given consideration equal to the
or agreed to be given under such total amount of the charge
instrument; (including the original
mortgage and any further
charge already made) less
the duty already paid on
such original mortgaged and
further charge.
(ii) If possession is not so given. The same duty as on a
Bond (No.17) for the
amount of the further
charge secured by such
instrument.
35. GIFT-Instrument of, not being The same duty as is leviable
SETTLEMENT(No.60) OR WILL OR on a Conveyance (No.24)
TRANSFER (No.64). HIRING AGREEMENT or for a consideration equal to
AGREEMENT FOR SERVICE. See the value of the property as
AGREEMENT (No.5). set-forth in such instrument.
36. INDEMNITY BOND. The same duty as on a
INSPECTORSHIP-DEED-See COMPOSITION-DEED Security Bond (No. 59) for
(No. 23).INSURANCE- See POLICY OF INSURANCE the same amount.
(No. 49).
37. LEASE, including an under-lease or sub-lease and
any agreement to let or sub-let-
(a) where by such lease the rent is fixed and no
premium is paid or delivered-
(i) where the lease purports to be for a Two percent of the whole
term of less than one year; amount payable or
deliverable under such lease.
Two percent of the amount
(ii) where the lease purports to be for a or value of the average
term of not less than one year but annual rent reserved.
not more than three years; Two percent of the
(iii) where the lease purports to be for a consideration equal to the
term in excess of three years, but not amount or value of the
more than twenty years; average annual rent
reserved.
Two percent of the
(iv) where the lease purports to be for a consideration equal to the
whole amount of rents
term in excess of twenty years or in
which would be paid or
perpetuity;
delivered in respect of the
first ten years of the lease.
Two percent of the
(v) where the lease does not purport to consideration equal to the
be for any definite term. amount or value of the
average annual rent which
would be paid or delivered
for the first ten years, if the
lease continued so long.
(b) (i) where the lease is granted for Two percent of the
money advanced and where no rent is consideration equal to the
reserved; amount of such advanced
as set forth in the lease.
(ii) where the lease is granted for a
Two percent of the
fine or premium and where no rent is
consideration equal to the
reserved;
amount of such fine or
premium as set forth in the
(c) (i) where the lease is granted for lease.
money advanced in addition to rent Two percent of the
reserved; consideration equal to the
amount of advance as set
forth in the lease, in
addition to the duty which
would have been payable
on such lease, if no
advance had been paid or
delivered; provided that, in
any case when an
agreement to lease is
stamped with the ad
valorem stamp required for
a lease and a lease in
pursuance of such
agreement is subsequently
executed, the duty on such
lease shall not exceed four
rupees.
Two percent of the
consideration equal to the
(ii) where the lease is granted for a amount of such fine or
fine or premium in addition to rent premium as set forth in lease
reserved. in addition to the duty which
would have been payable on
such lease if no fine or
premium has been paid or
delivered: Provided that, in
any case when an
agreement to lease is
stamped with an ad valorem
stamped required for a lease
and a lease in pursuance of
such agreement is
subsequently executed, the
duty on such lease shall not
exceed one hundred rupees.
EXEMPTION:- Lease, executed in the case of a
cultivator and for the purposes of cultivation (including a
lease of trees for the production of food or drink) without
the payment or delivery of any fine or premium when a
definite term is expressed and such term does not
exceed one year, or when the average annual rent
reserved does not exceed one hundred rupees.
38. LETTER OF ALLOTMENT OF SHARES in any Ten rupees
company or proposed company or in respect of
any loan to be raised by any company or
proposed company.
See also CERTIFICATE OR OTHER
DOCUMENT (No.21).
39. LETTER OF CREDIT, that is to say, any
instrument by which one person authorizes
another to give credit to the person in whose
favor it is drawn.
LETTER OF GUARANTEE, See AGREEMENT
(No.5).
40. LETTER OF LICENCE, that is to say, any Fifty rupees
agreement between a debtor and his creditors,
that the letter shall, for a specified time, suspend
their claims and allow the debtor to carry on
business at his own discretion.
41. MEMORANDUM OF ASSOCIATION OF A
COMPANY-
(a) if accompanied by articles of association One hundred rupees
under section 35 of the Companies Act,
2017 (XIX of 2017);
(b) If not so accompanied. Two hundred rupees.
EXEMPTION:- Memorandum of any association not
formed for profit and registered under section 42 of the
Companies Act, 2017 (XIX of 2017).
42. MORTGAGE-DEED not being an AGREEMENT
RELATING TO DEPOSIT OF TITLE-DEEDS,
PAWN OR PLEDGE (No.6), BOTTOMRY BOND
(No.18), MORTGAGE OF A CROP
(No.43), RESPONDENTIA BOND (No.58), OR
SECURITY BOND (No.59)-
(a) when possession of the property or any Three percent of the
part of the property comprised in such consideration equal to the
deed is given by the mortgagor or agreed amount secured by such
to be given; deed.
(b) When possession is not given or agreed Three percent of the
to be given as aforesaid. amount secured by such
deed.
Explanation- A mortgagor who gives to the mortgagee
a power of attorney to collect rents or a lease of the
property mortgaged or part thereof, is deemed to give
possession within the meaning of this article.
(c) when a collateral or auxiliary or additional Ten rupees.
or substituted security, or by way of
further assurance for the above-
mentioned purposes where the principal
or primary security is duly stamped-
for every sum secured not exceeding Rs
1,000; and for every Rs 1,000 or part
thereof secured in excess of Rs 1,000
(d) (i) mortgage with banking companies
that is to say simple or legal mortgage for One fifth of one percent
banking companies or other financial that is to say 0.2% of the
institution when the entire finance is not loan amount subject to a
based on interest. maximum of one hundred
(ii) in any other case rupees.
One fifth of one percent
that is to say 0.2% of the
EXEMPTION:- loan amount.
(1) Instruments, executed by persons taking
advances under the Land Improvement Loans
Act, 1883 (XIX of 1883), or the Agriculturists
Loans Act, 1884 (XII of 1884) or by their sureties
as security for the repayment of such advances.
(2) Letter of hypothecation accompanying a Bill of
Exchange.
43. MORTGAGE OF A CROP, including any
instrument evidencing an agreement to secure
the repayment of a loan made upon any
mortgage of a crop, whether the crop is or is not
in existence at the time of mortgage-
(a) when the loan is repayable not more than One rupee
three months from the date of the
instrument, for every two hundred rupees or
part thereof of the sum secured.
(b) when the loan is repayable more than Two rupees
three months, but not more than eighteen
months, from the date of the instrument,
for every one hundred rupees or part
thereof of the sum secured.
44. NOTARIAL ACT, that is to say, any instrument, Ten rupees
endorsement, note, attestation, certificate or
entry not being a PROTEST (No.52) made or
signed by a Notary Public in the execution of the
duties of his office, or by any other person
lawfully acting as a Notary Public.
See also PROTEST OF BILL OR NOTE (No.52).
45. NOTE OR MEMORANDUM SENT BY a broker
or agent to his principal intimating the purchase
or sale on account of such principal-
(a) of any goods exceeding in value twenty
rupees; Five Rupees
(b) of any stock or marketable security
exceeding in value twenty rupees, not Five rupees for every Rs
being a Government Security. 5,000 or a part thereof of
the value of the stock or
(c) of a Government security security.
One rupee for every 10,000
rupees or part thereof of
the value of the security
subject to a maximum of
forty rupees.
46. NOTE OF PROTEST BY THE MASTER OF A Five rupees.
SHIP.
See also PROTEST BY MASTER OF A SHIP (No.53).
ORDER FOR THE PAYMENT OF MONEY.
See BILL OF EXCHANGE (No.15).
47. PARTITION-Instrument of [as defined by section Explanation- The
2(15)]. largest share remaining
after the property is
partitioned (or if there are
two or more shares of
equal value and not smaller
than any of the other
shares, than one of such
equal shares) shall be
deemed to be that from
which other shares are
separated:
Provided always
that-
(a) when an instrument of
partition contain-ing an
agreement to divide
property in severalty is
executed and a partition is
effected in pursuance of
such agreement, the duty
chargeable upon the
instrument affecting such
parti-tion shall be reduced
by the amount of duty paid
in respect of the first instru-
ment but shall not be less
than four rupees;
(b) where land is held on
Revenue Settlement for a
period not exceeding thirty
years and paying the full
assessment, the value for
purpose of duty shall be
calculated at not more
than five times the annual
revenue;
(c) where a final order for
effecting a partition
passed by any Revenue
authority or any Civil
Court, or an award by an
arbitrator directing a
partition, is stamped with
the stamp required for an
instrument of partition in
pursuance of such order
or award is subsequently
executed the duty on
such instrument shall not
exceed four rupees.
48. PARTNERSHIP-
A-INSTRUMENT OF-
(a) where the capital of the partnership does Two hundred rupees
not exceed Rs 500.
(b) in any other case One hundred rupees
B-DISSOLUTION OF PAWN OR PLEDGE- Half of the stamp duty
See AGREEMENT RELATING TO DEPOSIT OF payable on original.
TITLE-DEEDS, PAWN OR PLEDGE (No. 6).
49. POLICY OF INSURANCE- If drawn If drawn in
A-See INSURANCE (see section 7)- single duplicate
(1) For each voyage- for each
part
(i) where the premium of consideration Three Three
does not exceed the rate of 1/8 per rupees. rupees.
cent of the amount insured by the
policy for every full sum of Rs 5,000
and also any fractional parts thereof
insured by the policy.
(ii) in any other case, in respect of
every full sum of Rs 2,000 and Three Three
also any fractional part thereof rupees. rupees.
insured by the policy.
(2) For time-
in respect of every full sum of Rs 2,000 or
part thereof insured by the policy-
(i) where the insurance shall be made
for any time not exceeding six Three Three
months; rupees. rupees.
(ii) where the insurance shall be made
for any time exceeding six months Five rupees. Five rupees.
and not exceeding twelve months
B-FIRE-INSURANCE AND OTHER CLASSES OF
INSURANCE NOT ELSEWHERE INCLUDED IN THIS
ARTICLE, COVERING GOODS, MERCHANDISE,
PERSONAL EFFECTS, CROPS, AND OTHER
PROPERTY AGAINST LOSS OR DAMAGE-
(1) in respect of an original policy-
(i) when the sum insured does not
Five rupees.
exceed Rs 5,000;
(ii) in any other case and
Eight rupees.
(2) in respect of each receipt for any payment
One-half of the duty
of a premium on any renewal of an original
payable in respect of the
policy.
original policy in addition to
the amount, if any,
chargeable under No. 55.
C -ACCIDENT AND SICKNESS INSURANCE-
(a) Against railway accident, valid for a single Three rupees
journey only.
EXEMPTION
When issued to a passenger travelling by the
intermediate or the third class in any railway.
(b) In any other case for the maximum Three Rupees: Provided
amount which may become payable in that, in case of a policy of
the case of any single accident or insurance against death by
sickness where such amount does not accident when the annual
exceed Rs 2,000 and also where such premium payable does not
amount exceeds Rs 2,000, for every Rs exceed Rs 2.50 per Rs
2,000 or part thereof. 1,000 the duty on such
instrument shall be one
rupee for every Rs 1,000 or
part thereof o f the maximum
amount which may become
payable under it.
Three rupees if drawn
D-INSURANCE BY WAY OF INDEMNITY- singly.
Against liability to pay damages on account of accidents to
workmen employed by or under or against liability to pay
compensation under Workmen's Compensation Act, 1923
(VIII of 1923), for every Rs 100 or part thereof payable as
premium.
E-LIFE INSURANCE OR OTHER INSURANCE NOT If drawn If drawn in
SPECIFICALLY PROVIDED FOR, except such a RE- singly duplicate,
INSURANCE as is described in Division of this article- for each
(i) for every sum insured not exceeding Rs 250; part
(ii) for every sum insured exceeding Rs 250 but Three rupees Three
not exceeding Rs 500; Three rupees rupees.
(iii) for every sum insured exceeding Rs 500 but Three rupees Three
not exceeding Rs 1,000 and also for every rupees
Rs 1,000 or part thereof in excess of Three
Rs 1,000. rupees
EXEMPTIONS:-Policies of life insurance granted by the
Director-General of Post Offices in accordance with rules
for Postal Life Insurance issued under the authority of the
Central Government.
F-RE-INSURANCE BY AN INSURANCE COMPANY
WHICH HAS GRANTED A POLICY OF THE NATURE One-half of the duty
SPECIFIED IN DIVISION A OR DIVISION B OF THIS payable in respect of the
ARTICLE WITH ANOTHER COMPANY BY WAY OF original insurance but not
INDEMNITY OR GUARANTEE AGAINST THE less than three rupees or
PAYMENT ON THE ORIGINAL INSURANCE OF A more than eight rupee.
CERTAIN PART OF THE SUM INSURED THEREBY.
GENERAL EXEMPTIONS:-Letter of cover or
engagement to issue a policy of insurance: Provided
that, unless such letter or engagement bears the stamp
prescribed by this Act for such policy nothing shall be
claimable thereunder, nor shall it be available for any
purpose except to compel the delivery of the policy
therein mentioned.
50. POWER-OF-ATTORNEY as defined by section
2(21) of Stamps Act, 1899 (II of 1899), not being
a proxy (No.54)-
(a) when executed for the sole purpose of Five Hundred rupees
procuring the registration of one or more
documents in relation to a single
transaction or for admitting execution of
one or more such document;
(b) when authorizing one person or more to act One thousand rupees
in a single transaction other than the case
mentioned in clause (a);
(c) when authorizing not more than five One thousand rupees
persons to act jointly and severally in more
than one transaction or generally;
(d) when authorizing more than five but not One thousand rupees
more than ten persons to act jointly and
severally in more than one transaction or
generally;
(e) when given for consideration and One thousand rupees
39authorizing the attorney to sell any
immovable property.
(f) in any other case One thousand rupees
Explanation 1- For the purposes of this Article more
persons than one when belonging to the
same firm shall be deemed to be one
person.
Explanation 2- The term "Registration" includes every
operation incidental to registration under the
Registration Act, 1908 (XVI of 1908).
51. PROMISSORY NOTE as defined by section
2(22) of Stamps Act, 1899 (II of 1899)-
(a) when payable on demand-
(i) when the amount or value does Thirty Rupees
not exceed Rs 250.000;
(ii) when the amount or value Sixty Rupees
exceeds Rs 250,000 but does not
exceed Rs 500,000;
(iii) in any other case One Hundred rupees
(b) When payable otherwise than on One-fiftieth of one percent
demand, including a commercial paper. that is to say 0.02% per
annum of the amount
payable subject to a
maximum of Rs 100,000
52. PROTEST OF BILL OR NOTE, that is to say, Ten rupees
any declaration in writing made by a Notary
Public or other person lawfully acting as such,
attesting the 40dishonor of a Bill of Exchange for
promissory note.
53. PROTEST BY THE MASTER OF A SHIP, that is Ten rupees
to say, any declaration of the particulars of her
voyage drawn up by him with a view to the
adjustment of losses or the calculation of
averages, and every declaration in writing made
by him against the charterers or the consignees
or not loading or unloading the ship, such
declaration is attested or certified by a Notary
Public or other person lawfully acting as such.
See also NOTE OR PROTEST BY THE MASTER OF A
SHIP (No.46).
54. PROXY empowering any person to vote at any one Five rupees
election of the members of a district or local board
or of a body of municipal commissioners, or at any
one meeting of (a) members of an incorporated
company or other body corporate whose stock or
funds is or are divided into shares and transferable;
(b) a local authority; or (c) proprietors, members or
contribution to the funds of any institution.
55. RECEIPTS as defined by section 2 (23) of Stamps
Act, 1899 (II of 1899) for any money or other
property the amount or value of which exceeds
twenty rupees-
(a) where the amount or value does not One rupee
exceed two thousand rupees;
Two rupee
(b) where the amount or value exceeds two
thousand rupees but does not exceed ten
thousand rupees;
(c) Where such amount exceeds ten
Five rupee
thousand rupees.
EXEMPTIONS:-Receipts-
(a) endorsed on or contained in any
instrument duly stamped for any
instrument exempted under the proviso to
section 3 (instruments executed on behalf
of the Government) or any cheque or bill
of exchange, payable on demand
acknowledging the receipt of the
consideration money therein expressed,
or the receipt of any principal-money,
interest of annuity, or other periodical
payment thereby secured;
(b) for any payment of money without
consideration;
(c) for any payment of rent by a cultivator on
account of land assessed to Government
revenue;
(d) for pay or allowances by non-
commissioned or petty officers, soldiers,
sailors or airmen of the armed forces of
Pakistan/ Pakistan's military, naval or air
forces, when serving in such capacity, or
by mounted police constables;
(e) given by holders of family certificates in
cases where the person from whose pay
or allowances the sum comprised in the
receipt has been assigned as a non-
commissioned or petty officer, soldier,
sailor or airman or any of the said forces
and serving in such capacity;
(f) for pensions or allowances by persons
receiving such pensions or allowances in
respect of their services as such, non-
commissioned or petty officers, soldiers,
sailors or airmen, and not serving the
State in any other capacity;
(g) given by a headman or lambardar for
land-revenue or taxes collected by him;
(h) given for money or securities for money
deposited in the hands of any banker to be
accounted for:
Provided that the same is not
expressed to be received of, or by the
hands of, any other than the person to
whom the same is to be accounted for:
Provided also that this exemption
shall not extend to receipt or
acknowledgment for any sum paid or
deposited for, or upon a letter of allotment
of a share, or in respect of a call upon any
scrip or share of, or in, any incorporated
company or other body corporate or such
proposed or intended company or body or
in respect of a debenture being a
marketable security.
See also POLICY OF INSURANCE [No. 49-B (2)].
56. RE-CONVEYANCE OF MORTGAGE
PROPERTY-
(a) if the consideration for which the property Thirty Rupees
was mortgaged does not exceed Rs
1,000;
(b) in any other case One Hundred rupees
57. RELEASE,
(a) that is to say, any instrument [not being One Thousand Rupees.
such a release as is provided for by section
23A of Stamps Act, 1899 (II of 1899)]
whereby a person renounces a claim upon
another person or against any specified
property-
(b) in any other case One Thousand Rupees.
58. RESPONDENTIA BOND, that is to say, any The same duty as on a
instrument securing a loan on the cargo laden or Bond (No.17) for the
to be laden on board a ship and making amount of the loan secured.
repayment contingent on the arrival of the cargo
at the port of destination.
REVOCATION OF ARMY TRUST OR SETTLEMENT.
See SETTLEMENT (No.60),TRUST (No.66).
59. SECURITY BOND OR MORTGAGE
DEED executed by way of security for the due
execution of an office, or to account for money or
other property received by virtue thereof or
executed in favour of a Court for the due
discharge of a contingent liability or executed by a
surety to secure the due performance of a
contract-
(a) when the amount secured does not Thirty rupees
exceed Rs 1,000;
(b) in any other case One hundred rupees
EXEMPTIONS:- Bond or other instrument, when
executed-
(a) by any person for the purpose of
guaranteeing that the local income
derived from private subscription to a
charitable dispensary or hospital or any
other object of public utility shall not be
less than a specified sum per mensum;
(b) under No. 3-A of the rules made by the
Provincial Government under section 70
of the Sind Irrigation Act, 1879;
(c) executed by persons taking advances under
the Land Improvement, Loans Act, 1883
(XIX of 1883), or the Agriculturists Loans
Act, 1884 (XII of 1884), or by their sureties
as security for repayment of such advances;
(d) executed by servants of the State or their
securities to secure the due execution of
an office or the due accounting for money
or other property received by virtue
thereof.
60. SETTLEMENT-
A-Instrument of (including a deed of power)-
(i) where the settlement is made in favor of Two percent of the value of
legal heirs in respect of agriculture land the property.
(ii) Where the settlement is made for a Two percent of the sum
religious or charitable purpose: equal to the amount or value
of the property settled.
Two percent of the
(iii) in any other case consideration equal to the
amount or value of the
property settled:
Provided that, where
an agreement to settle is
stamped with the stamp
required for an instrument of
settlement, and an
instrument of settlement in
pursuance of such
agreement is subsequently
executed, the duty on such
instrument shall not exceed
four rupees:
Provided further that
where an instrument of
settlement contains any
provision for the revocation
of the settlement, the
amount or value of the
property settled shall, for the
purposes of duty, be
determined as if no such
provisions were contained in
the instrument.
EXEMPTIONS:- Deed of dower executed on the
occasion of marriage between Muslims. Two percent of the
B-Revocation of- consideration equal to the
See also TRUST (No.66) amount or value of the
property concerned as set
forth in the instrument of
revocation.
61. SHARE WARRANTS to bearer issued under the One and a half times the
Companies Act, 2017 (XIX of 2017). duty payable on a
Debenture [No.28 ] for a
consideration equal to the
nominal amount of the
shares specified in the
warrant.
EXEMPTIONS:-
Share warrant when issued by a company in pursuance
of the Companies Act, 2017 (XIX of 2017), to have
effect only upon payment, as composition for that duty,
to the Collector of Stamp revenue of-
(a) one and a half per centum of the whole
subscribed capital of the company; or
(b) if any company which has paid the said
duty or composition in full subsequently
issues an addition to its subscribed
capital-one and half per centum of the
additional capital so issued.
SCRIP-See CERTIFICATE (No.21).
62. SHIPPING ORDER for or relating to the Five rupees
conveyance of goods on board of any vessel.
63. SURRENDER OF LEASE-
(a) when the duty with which the lease is The duty with which lease
chargeable does not exceed thirty rupees; is chargeable.
(b) in any other case
EXEMPTION:-
One hundred rupees
Surrender of lease, when such lease exempted from
duty.
64. TRANSFER (whether with or without
consideration)-
(a) of shares in an incorporated company or One-fourth of the duty
other body corporate; payable on a Conveyance
(No.24) for a consideration
equal to the value of the
share.
(b) of Debenture or Participation Term One tenth of one percent
Certificate or Term Finance Certificate or that is to say 0.1% of the
any other instrument or redeemable face value of the instrument.
capital (other than Commercial Paper),
whether mortgaged or not, being a
transferable security, whether liable to
duty or not except as provided for by
section 8
(c) of any interest secured by a bond,
mortgage-deed or policy of insurance- The duty with which such
(i) if the duty on such bond, bond, mortgage-deed or
mortgage-deed or policy does not policy of insurance is
exceed twenty rupees; chargeable.
Fifty rupees.
(ii) in any other case Fifty rupees.
(d) of any property under the Administrator-
General's Act, 1913, (III of 1913) section
31; Twenty rupees or such
(e) of any trust-property without consideration smaller amount as may be
from one trustee to another trustee or from chargeable under clauses
a trustee to a beneficiary. (a) to (c) of this Article.
EXEMPTIONS:-
Transfers by endorsement-
(a) of a bill of exchange, cheque or promissory
note;
(b) of a bill of lading, delivery order, warrant
for goods, or other mercantile document
of title to goods;
(c) of a policy of insurance;
(d) of securities of the Federal Government.
See also section 8-
65. TRANSFER OF LEASE by way of assignment The same duty as is leviable
and not by way of under-lease. on Conveyance (No.24) for
a consideration equal to the
amount of the consideration
for the transfer.
EXEMPTION:-Transfer of any lease exempt from duty.
66. TRUST-
A. Declaration of - of or concerning any The same duty as on a
property when made by any writing not Bond (No.17) for a sum
being a WILL. equal to the amount or
value of the property
concerned as set forth in
the instrument but not
exceeding two hundred
rupees
B. Revocation of-of, or concerning any The same duty as on a
property when made by any instrument Bond (No.17) for a sum
other than a WILL. equal to the amount of
value of the property
concerned as set forth in
the instrument but not
exceeding two hundred
rupees.
See also SETTLEMENT (No.60).
VALUATION. See APPRAISEMENT (No.8).
67. WARRANT FOR GOODS, that is to say, any
instrument evidencing the title of any person therein
named, or his assigns, or the holder thereof, to the
property in any goods lying in or upon any dock,
warehouse or wharf, such instrument being signed or
certified by or on behalf of the person in whose custody
such goods may be.
=====================================================================================================================================================
3 Amendment of the West Pakistan Motor Vehicles Taxation Act, 1958 (W.P. ACT
No. XXXII of 1958). - In the West Pakistan Motor Vehicles Taxation Act, 1958 (W.P. Act No. XXXII of 1958), as in force in the Islamabad Capital Territory, for the Schedule, the following shall be substituted, namely:-
"Schedule
[See section 3]
TABLE 1
===================================================================================
S. No. CATEGORY TAX RATES
FOR ICT Rs
===================================================================================
(1) (2) (3)
===================================================================================
TOKEN TAX (Motor Cycle and Scooter)
1. Motor Cycle and Scooter Upto 200 cc 1,000 (lifetime)
2. Motor Cycle and Scooter from 201 cc to 400 cc 2000 (lifetime)
3. Motor Cycle and Scooter from 401 and above 5000 (lifetime)
===================================================================================
Provided that quarterly rates under section 3 shall not be applicable to lifetime tax.
TABLE 2
======================================================================================
Sr. No. CATEGORY TAX RATES Period
FOR ICT Rs
======================================================================================
(1) (2) (3) (4)
======================================================================================
TOKEN TAX (Motor Vehicles)
Engine capacity upto 1000 CC 10,000 Lifetime Provided
that quarterly rate
under section 3 shall
not be applicable to
lifetime tax.
4. Engine capacity from 1001 to 1300 1,500 per annum
cc
5. Engine capacity from 1301 to 1500 4,000 per annum
cc
6. Engine capacity from 1501 to 2000 5,000 per annum
cc
7. Engine capacity from 2001 to 2500 8,000 per annum
cc
8. Engine capacity from 2501 and 12,000 per annum
above
======================================================================================
TABLE 3
===============================================================================
S.No. CATEGORY MOTOR CABS UPTO 6 SEATS
TAX RATES FOR ICT Rs
===============================================================================
(1) (2) (3)
===============================================================================
9 Engine capacity upto 1000 CC 600 per annum
10 Engine capacity upto 1001 and above 1000 per annum
===============================================================================
TABLE 4
PUBLIC SERVICE VEHICLE
========================================================
S.No. Category Tax rates of
for ICT in Rupees
========================================================
(1) (2) (3)
========================================================
11. Vehicle (8 seater) 200 per seat per annum
12. Vehicle (13 seater) 250 per seat per annum
13. Vehicle (15 seater) 300 per seat per annum
14. Vehicle (16 seater) 300 per seat per annum
15. Vehicle (42 seater) 400 per seat per annum
16. Vehicle (52 seater) 500 per seat per annum
========================================================
TABLE 5
COMMERCIAL VEHICLES AND LOADING VEHICLES
=============================================================================
S.No. Category Tax rates of
for ICT in Rupees
=============================================================================
(1) (2) (3)
=============================================================================
17. Vehicles not exceeding 1250 KG in laden 500 per annum
18. Vehicles with maximum laden capacity 800 per annum
exceeding 1250 KG but not exceeding 2030 KG
19. Vehicles with maximum laden capacity 2,000 per annum
exceeding 2030 KG but not exceeding 4060 KG
20. Vehicles with maximum laden capacity 3,000 per annum
exceeding 4060 KG but not exceeding 6090 KG
21. Vehicles with maximum laden capacity 3,500 per annum
exceeding 6090 KG but not exceeding 8120 KG
22. Vehicles with maximum laden capacity 4,000 per annum
exceeding 8120 KG
=============================================================================
4 Amendment of West Pakistan Finance Act, 1964 (W.P. Act No. XXXIV of 1964).
- In the West Pakistan Finance Act, 1964 (W. P. Act No. XXXIV of 1964) as in force in the Islamabad Capital Territory, -
(a) for section 11, the following shall be substituted, namely:-
"11. Tax on trades, professions, callings and employments.- There shall be levied and collected from the persons and companies of the categories specified in column (2) of the Seventh Schedule per annum, a professional tax at the rate as specified in column (3) of that Schedule in the prescribed manner."; and
(b) for the Seventh Schedule, the following shall be substituted, namely;-
"Seventh Schedule
[See section 11]
======================================================================================
S. No. Categories Rates of tax per
annum in ICT in
Rupees
======================================================================================
(1) (2) (3)
======================================================================================
1. Companies registered under the Companies Act 2017 having;
a. Capital Upto PKR 5 million but not exceeding PKR 10 7,000
million
b. Capital exceeding PKR 5 million but not exceeding PKR 18,000
50 million
c. Capital exceeding PKR 50 million but not exceeding PKR 35,000
100 million
d. Capital exceeding PKR 100 million but not 80,000
exceeding PKR 200 million
e. Capital exceeding PKR 200 million 90,000
f. Employees not exceeding 10 1000
g. Employees exceeding 10 but not exceeding 25 2,000
h. Employees exceeding 25 5,000
2. Lawyers 1,000
3. Members of Stock Exchanges 5,000
4. Money Changer 3,000
5. Motorcycle Dealers 5,000
6. Motor Car Dealers and Real Estate Agents 10,000
7. Health Clubs, Gymnasiums & Others 5,000
8. Recruiting Agents 10,000
9. Jewellers, Departmental Stores, Electronic Goods 1,000
Stores, Cable Operators, Printing Presses and Pesticide
Dealers
10. Tobacco Vendors - Wholesalers 2,000
11. Medical consultants or specialists/dental surgeons 5,000
12. Registered medical practitioners 2,000
13. others 1,000"
======================================================================================
5 Amendment of West Pakistan Finance Act, 1965 (W.P. ACT No. I of 1965). - In
the West Pakistan Finance Act, 1965 (I of 1965), as in force in the Islamabad Capital Territory, in section 12, for sub-section (1), the following shall be substituted, namely:-
"(1) There shall be levied and collected in prescribed manner from all the hotels, having at least twenty-five lodging units, a bed tax at the rate of five percent of the invoice or bill excluding sales tax and other applicable taxes".
6 Amendments of Customs Act, 1969 (IV of 1969).- In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely:-
(1) in section 2,-
(a) after omitted clause (ib), the following new clause shall be inserted, namely,-
"(ic) "Customs controls" means measures applied by the officers of customs or through Customs Computerized System to manage risks and ensure compliance;";
(b) after clause (qa), the following new clause shall be inserted, namely,-
"(qb) "Risk Management System" means the systematic application of Customs Controls and Management Procedures on pre-arrival, Customs clearance processes and post clearance of goods and passengers, for identifying, analyzing, evaluating, monitoring, reviewing and treating the risk associated with them;"; and
(c) after clause (rr), the following new clause shall be inserted; namely,-
"(rrr) "Selectivity Criteria" means the risk parameters determined by the Risk Management Committee constituted under the rules for the application of Risk Management System;";
(2) in section 3E, for the word "Directorates" wherever occurring, the expression "Directorates General and Directorates," shall be substituted;
(3) in section 18D, for the words "Federal Government", the expression "Board, with approval of the Federal Minister-in-charge" shall be substituted;
(4) in section 19, the expression "removal of anomalies in duties, development of backward areas," shall be omitted;
(5) in section 25A,-
(a) in sub-section (1), the expression "the Collector of Customs on his motion, or" shall be omitted;
(b) sub-section (3) shall be omitted; and
(c) in sub-section (4), the expression "or, as the case may be, under sub-section (3)," shall be omitted;
(6) in section 30, in the fifth proviso, for the words "Federal Government", the expression "Board, with approval of the Federal Minister-in-charge" shall be substituted;
(7) in section 30A, in the second proviso, for the words "Federal Government",
the expression "Board, with approval of the Federal Minister-in-charge" shall be substituted;
(8) in section 31, in the second proviso, for the words "Federal Government", the expression "Board, with approval of the Federal Minister-in-charge" shall be substituted;
(9) in section 32, in sub-section (3A),-
(i) after the word "importer's", the words "or exporter's" shall be inserted;
(ii) after the word "importer", the words "or exporter" shall be inserted; and
(iii) after the word "imported", the words "or exported" shall be inserted;
(10) in section 32B, after the word "Collector", the words "or Director" shall be inserted;
(11) after section 32B, the following new section shall be inserted, namely:-
"32C. Mis-declaration of value for illegal transfer of funds abroad.- Without prejudice to any action that may be taken under this Act or any other law for the time being in force, if any person overstates the value of imported goods or understates the value of exported goods or vice versa, such person shall be served with a notice within a period of two months from the seizure of goods to show cause as to why such goods may not be confiscated.";
(12) in section 33,-
(a) in sub-section (3A), after the word "of", occuring for the first time, the expression "subject to pre-audit" shall be inserted; and
(b) after sub-section (4), the following new sub-section shall be inserted, namely:-
"(5) For the purpose of this section, the Board may, by notification in the official Gazette, specify the jurisdiction and powers of the officers of Customs to sanction refund in terms of amount of Customs duty and other taxes involved.";
(13) in section 79, in sub-section (1), for the word "fifteen", the word "ten" shall be substituted;
(14) after omitted section 80A, the following new section shall be inserted, namely:-
"80AA. Application of risk management system.- For the purpose of enforcing Customs Controls, risk management system shall be used in such manner as may be prescribed by rules.";
(15) in section 81, after the figure "79", the expression "or 131" shall be inserted;
(16) in section 82,-
(a) for the word "twenty", occurring twice, the word "fifteen" shall be substituted; and
(b) for word "ten" the word "five" shall be substituted;
(17) in section 90,-
(a) in sub-section (2), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that where the Customs Computerized system is operational, the issuance of warrant and subsequent transfer of warrant shall take place through system generated documents."; and
(b) after sub-section (3), the following new sub-section shall be added, namely:-
"(4) The Board may make rules to regulate the transfer of goods in the manner as mentioned in sub-section (2).";
(18) in section 98,-
(i) in sub-section (1),-
(a) for the word "three", the word "one" shall be substituted;
(b) in the proviso,-
(i) in clause (a), after the semicolon, the word "and" shall be added; and
(ii) for clause (b), the following shall be substituted, namely:-
"(b) by the Chief Collector of Customs for such period as he may deem fit."; and
(c) clause (c) shall be omitted; and
(ii) in sub-section (3), after the words "Federal Government", the word "or Board" shall be inserted;
(19) in section 155A, for the words "Federal Government", the word "Board" shall be substituted;
(20) in section 156, in sub-section (1), in the TABLE, in the zero column,-
(a) for clause 14 and entries relating thereto in columns (1), (2) and (3), the following new clause and entries related thereto shall be substituted, namely:-
==================================================================
"14 If any person such person shall be liable to a
commits an penalty not exceeding two
offence under hundred thousand rupees or
three times the value of the
(i) sub-section (1) goods in respect of which such
or sub-section
(2) of section offence is committed,
32;
whichever be greater; and
such goods shall also be liable
to confiscation; and upon
conviction by a Special Judge
he shall further be liable to
imprisonment for a term not
exceeding three years, or to
fine, or to both;
(ii) sub-section (3) such person shall be liable to a
or sub-section penalty not exceeding fifty
(3A) of section thousand rupees or two times
32, the value of the goods in
respect of which such offence
is committed, whichever be
greater.
==================================================================
(b) after clause 14A and entries relating thereto in columns (1), (2) and (3), the following new clause and entries related thereto shall be inserted, namely:-
===============================================================
"14B If any person Such person shall be liable to
commits an penalty not exceeding two
offence under hundred thousand rupees or
section 32C, three times the value of goods
in respect of which such
offence is committed
whichever is greater; and such
goods shall also be liable to
confiscation; and upon
conviction by a special judge
he shall further be liable to
imprisonment for a term not
exceeding ten years and to a
fine which may extend upto
one million rupees; and shall
also be liable to forfeiture of
property involved in money
laundering or property of
corresponding value in
accordance with the
provisions of the Anti-Money
Laundering Act, 2010 (XIV of
2010).
===============================================================
(c) for clause 47A and entries relating thereto in columns (1), (2) and (3), the following new clause and entries related thereto shall be substituted, namely:-
====================================================================
"47A If the goods The owner of such goods
declaration is not shall be liable to a penalty at
filed within the the rate of rupees five
prescribed period thousand per day for the
of ten days, initial five days of default and
at the rate of rupees ten
thousand per day for each day
of default thereafter.
====================================================================
(21) after section 156, the following new section shall be inserted, namely:-
"156A. Proceedings against persons.- (1) Subject to section 217, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in sections 3 to 3DDD, including any person subordinate to the aforesaid authority, who willfully and deliberately commits or omits an act which results in personal benefits and undue advantage to the authority or the person or taxpayer or both.
(2) Where proceedings under sub section (1) have been initiated against a person or authority, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the taxpayer.
(3) The proceedings under this section shall be without prejudice to any liability that the authority, person or taxpayer may incur under any other law for the time being in force.
(22) in section 179,-
(a) in sub-section (1),-
(i) clause (iv) shall be omitted;
(ii) in clause (v), for the word "fifty" the words "one hundred" shall be substituted; and
(iii) in clause (vi), for the word, "fifty" the words "one hundred" shall be substituted;
(b) in sub-section (3), for the words "one hundred and twenty", the word "ninety" shall be substituted;
(23) in section 181, in second proviso, after the figure "16", the words "or in violation of any other provisions of this Act" shall be inserted;
(24) in section 185,-
(a) in sub-section (1), for the words "Federal Government", the expression "Prime Minister, in consultation with the Chief Justice of the concerned High Court," shall be substituted; and
(b) in sub-section (3), for the words "Federal Government", the expression "Prime Minister, in consultation with the Chief Justice of the concerned High Court," shall be substituted;
(25) in section 185D, in sub-section (1), for the words "Federal Government", wherever occurring, the words "Prime Minister" shall be substituted;
(26) in section 193, in sub-section (1), after the figure "80", the expression ",131" shall be inserted;
(27) in section 193A, in sub-section (3), for the words "one hundred and twenty", the word "ninety" shall be substituted;
(28) for section 194, the following shall be substituted, namely:-
"194. Appellate Tribunal.- (1) There shall be established an Appellate Tribunal to be called the Customs Appellate Tribunal to exercise the powers and perform the functions conferred on the Appellate Tribunal by this Act.
(2) The Appellate Tribunal shall consist of a chairman and such other judicial and accountant members as are appointed by the Prime Minister having regards to the needs of the Tribunal.
(3) No person shall be appointed as a judicial member of the Appellate Tribunal unless such person-
(a) has been a judge of a High Court;
(b) has exercised the powers of a District Judge and is qualified to be a judge of the High Court; or
(c) is or has been an advocate of a High Court and is qualified to be appointed as a judge of a High Court:
Provided that the person who is or has been an advocate of High Court shall not be appointed as judicial member unless selected in accordance with the Civil Servants Act, 1973 (LXXI of 1973) and the Federal Public Service Commission Ordinance, 1977 (XLV of 1977).
(4) No person shall be appointed as a technical member of an Appellate Tribunal unless such person-
(a) is an officer of Pakistan Customs Service equivalent in rank to the Member of the Board or Chief Collector of Customs or Director General; or
(b) is a Collector or Director or Chief of the Board having at least three years experience in that position.
(5) The Prime Minister shall appoint one of the Members of the Appellate Tribunal to be the chairman thereof.
(6) The terms and conditions of appointment of the chairman and judicial and technical members shall be as such as the Prime Minister may determine:
Provided that the appointment of a technical member shall be for a period of two years.";
(29) in section 195,-
(a) in the marginal heading, after the word "Collector", the words " or Chief Collector" shall be inserted;
(b) in sub-section (1), for the expression "Collector of Customs (Adjudication)", the words "Chief Collector" shall be substituted; and
(c) after sub-section (2), the following new sub-section shall be added, namely:-
"(3) The cases records of which are called and examined under sub-section (1) shall be decided within a period of one twenty days further extendable by the Board for another sixty days subject to recording of reasons in writing.";
(30) for section 195C, the following shall be substituted, namely:-
"195C. Alternative dispute resolution (ADR).- (1) Notwithstanding anything contained in this Act, or the rules made there under, any aggrieved person, in connection with any dispute pertaining to liability of customs-duty, admissibility of refund or rebate, waiver or fixation of penalty or fine, confiscation of goods, relaxation of any time period or procedural and technical condition which is under litigation in any court of law or an appellate authority, except in the cases where first information reports (FIRs) have been lodged or criminal proceedings have been initiated or where interpretation of question of law having larger revenue impact in the opinion of the Board is involved, may apply to the Board for the appointment of a committee for the resolution of dispute in appeal.
(2) The Board may, subject to the provisions of sub-section (1), after examination of the application of an aggrieved person, appoint a committee, within sixty days of receipt of such application, consisting of-
(a) an officer of customs not below the rank of Chief Collector;
(b) a person to be nominated by the applicant from a panel notified by the Board, comprising-
(i) senior chartered accountants and senior advocates having minimum ten years experience in the field of taxation; and
(ii) reputable businessmen as nominated by Chambers of Commerce and Industry:
Provided that the taxpayer shall not nominate a chartered accountant or an advocate if the said chartered accountant or the advocate is or has been an auditor or an authorized representative of the taxpayer;
and
(iii) a retired judge not below the rank of District and Sessions Judge, to be nominated through consensus by the members appointed under clauses (i) and (ii).
(3) The aggrieved person or the concerned Collector or both, as the case may, shall withdraw the appeal pending before any court of law or an appellate authority, after constitution of the committee by the Board under sub-section (2).
(4) The committee shall not commence the proceedings under sub-section (5) unless the order of withdrawal by the appellate authority is communicated to the Board:
Provided that if the order of withdrawal is not communicated within seventy-five days of the appointment of the committee, the said committee shall be dissolved and provision of this section shall not apply.
(5) The committee constituted under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of customs or any other person to conduct an audit and shall decide the dispute by majority, within ninety days of its constitution in respect of the resolution of dispute as it deem fit:
Provided that in computing the aforesaid period of one hundred and twenty days, the period, if any, for communicating the order of withdrawal under sub-section (4) shall be excluded.
(6) The recovery of duties and taxes payable by the applicant in connection with any dispute for which a committee has been appointed under sub-section (2) shall be deemed to have been stayed on withdrawal of appeal upto the date of decision by the committee.
(7) The decision of the committee under sub-section (5) shall be binding on the Collector and the aggrieved person.
(8) If the committee fails to make recommendations within a stipulated period of ninety days under sub-section (5), the Board shall dissolve the committee by an order in writing and the matter shall be decided by the appellate authority which issued the order of withdrawal under sub-
section (4) and the appeal shall be treated to be pending before such appellate authority as if the appeal had never been withdrawn.
(9) The Board shall communicate the order of dissolution to the court of law or the appellate authority and the Collector and the aggrieved person.
(10) The aggrieved person, on receipt of the order of dissolution, shall communicate the order to the appellate authority, which shall decide the appeal within six months of the communication of the said order.
(11) The aggrieved person may make payment of customs duty and other taxes as determined by the committee under sub-section (6) and all decisions, orders and judgments made or passed shall stand modified to that extent.
(12) The Board may prescribe the amount to be paid as remuneration for the services of the members of the committee, other than the member appointed under clause (a) of sub-section (2).
(13) The Board may, by notification in the official Gazette make rules for carrying out the purposes of this section, including the procedures and manner of conducting of ADR committee meetings.";
(31) in section 200, in the proviso, after the word "importer", the words "or exporter" shall be inserted;
(32) in section 202, for the expression ",Central Excise and Sales Tax" and the expression ",Central Excise or Sales Tax", wherever appearing, the words " or Inland Revenue" shall be substituted;
(33) in section 203, after the word "fees", occurring at the end, the words "as provided under the rules prescribed by the Board" shall be inserted;
(34) in section 212A, in sub-section (2), the words "with approval of Federal Government" shall be omitted;
(35) the amendments set out in the First Schedule to this Act shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969);
(36) the Fifth Schedule to the Customs Act (IV of 1969) shall be substituted in the manner provided for in the Second Schedule to this Act.
7 Amendment of the Port Qasim Authority Act, 1973 (XLIII of 1973). - In the Port Qasim Authority Act, 1973 (XLIII of 1973), -
(a) after section 56, the following new section shall be inserted, namely:-
"56A. Surplus to be remitted to Federal Consolidated Fund.- Any surplus of receipts over the actual expenditure in a year, after payment of tax, shall be remitted to the Federal Consolidated Fund (FCF) and any deficit from the actual expenditure shall be made up by the Federal Government to the extent of funds deposited in FCF." ; and
(b) after section 60, the following new section shall be inserted namely:-
"60A. Fines and penalties to be credited to the Federal
Consolidated Fund.- All fines and penalties recovered by the Authority shall be credited to the Federal Consolidated Fund."
8 Amendment of the Abandoned Properties (Management) Act, 1975 (XX of 1975).- In the Abandoned Properties (Management) Act, 1975 (XX of 1975), -
(a) in section 16, in sub-section (2), clause (k) shall be omitted;
(b) in section 19,-
in sub-section (1), after the expression "thereof", the expression "Any surplus of receipts over the actual expenditure in a year shall be remitted to the Federal Consolidated Fund." shall be added; and (c) in section 29,- the existing provision thereof shall be renumbered as sub-section (1) thereof and thereafter the following new sub-section (2) shall be added, namely:-
"(2) The sale proceeds of abandoned property, including the amounts already received, shall be deposited in the Federal Consolidated Fund:
Provided that the deposited amounts shall in the prescribed manner be refunded in the light of any court order, international settlement, etc."
9 Amendment of the Pakistan Civil Aviation Authority Ordinance, 1982 (XXX of 1982).- In the Pakistan Civil Aviation Authority Ordinance, 1982 (XXX of 1982), after section 15, the following new section shall be inserted, namely:-
"15A. Surplus to be remitted to Federal Consolidated Fund.- Any surplus of receipts over the actual expenditure in a year, after payment of tax, shall be remitted to the Federal Consolidated Fund (FCF) and any deficit from the actual expenditure shall be made up by the Federal Government to the extent of funds deposited in FCF."
10 Amendment of the National Database and Registration Authority Ordinance, 2000 (VIII of 2000). - In the National Database and Registration Authority Ordinance, 2000 (VIII of 2000).-
(a) after section 26, the following new section shall be inserted, namely:-
"26A. Surplus to be remitted to Federal Consolidated Fund.- Any surplus of receipts over the actual expenditure in a year, after payment of tax, shall be remitted to the Federal Consolidated Fund (FCF) and any deficit from the actual expenditure shall be made up by the Federal Government to the extent of funds deposited in FCF." ;and
(b) after section 30, the following new section shall be inserted, namely;
"30A. Fines and penalties to be credited to the Federal
Consolidated Fund.- All fines and penalties recovered by the Authority shall be credited to the Federal Consolidated Fund."
11 Amendments of the Sales Tax Act, 1990.- In the Sales Tax Act, 1990, the following further amendments shall be made, namely:-
(1) in section 2,-
(a) for clause (5AB), the following shall be substituted, namely:-
"(5AB) "cottage industry" means a manufacturing concern, which fulfils each of following conditions, namely:
(a) does not have an industrial gas or electricity connection;
(b) is located in a residential area;
(c) does not have a total labour force of more than ten workers; and
(d) annual turnover from all supplies does not exceed two million rupees;";
(b) in clause (11A),
(i) the expression "(Private)" shall be omitted; and
(ii) for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(c) in clause (27), after the word "manufacturer", the expression "or importer, in case of imported goods" shall be inserted;
(d) in clause (33), in the proviso, for the words "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(e) in clause (43), for the words "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(f) in clause (43A),-
(i) in sub-clause (c), the word "and" at the end shall be omitted;
and
(ii) in sub-clause (d), after the semi-colon at the end, the word "and" shall be inserted, and thereafter the following new clause
(e) shall be added, namely:-
"(e) a retailer, whose shop measures one thousand square feet in area or more."; and
(g) in clause (46), í
(i) in sub-clause (d), after the word "goods", the expression "excluding those as specified in the Third Schedule" shall be inserted;
(ii) in sub-clause (e), the word "and" at the end shall be omitted;
(iii) for clause (f), the following shall be substituted, namely:
"(f) in case of manufacture of goods belonging to another person, the actual consideration received by the manufacturer for the value addition carried out in relation to such goods;";
and
(iv) after clause (g), the following new clauses shall be added,
namely:
"(h) in case of supply of electricity by an independent power producer, the amount received on account of energy purchase price only; and the amount received on account of capacity purchase price, energy purchase price premium, excess bonus, supplemental charges etc. shall not be included in the value of supply; and
(i) in case of supply of electric power and gas by a
distribution company, the total amount billed including price of electricity and natural gas, as the case may be, charges, rents, commissions and all duties and taxes local, provincial and federal but excluding the amount of late payment surcharge and the amount of sales tax;";
(2) in section 3,-
(a) for sub-section (1B), the following shall be substituted, namely:
"(1B) On the goods specified in the Tenth Schedule, in lieu of levying and collecting tax under sub-section (1), the tax shall be levied and collected, in the mode and manner specified therein
(a) on the production capacity of plants, machinery, undertaking, establishments or installation producing on manufacturing such goods; or
(b) on fixed basis, from any person who is in a position to collect such tax due to the nature of the business, and different rates may be so prescribed for different regions or areas.";
(b) in sub-section (2), in clause (a),-
(i) after the word "supplies", occurring for the first time, the words "and import of goods" shall be inserted;
(ii) after the word "supplies", occurring for the second time, the words "or imports" shall be inserted;
(iii) after the word "manufacturer", the expression ", or the importer, in case of imported goods,"shall be inserted; and
(iv) in the proviso, after the word "supply", occurring twice, the words "or import" shall be inserted;
(c) in sub-section (3A), for the words "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(d) for sub-section (7), the following shall be substituted, namely:-
"(7) The tax shall be withheld by the buyer at the rate as specified in the Eleventh Schedule, by any person or class of persons as withholding agent for the purpose of depositing the same, in such manner and subject to such conditions or restrictions as the Board may prescribe in this behalf through a notification in the official Gazette.";
(e) in sub-section (9), -
(i) after the word "retailers", the expression ", other than those falling in Tier-1," shall be inserted;
(ii) for the expression "subject to the exclusions, procedure, restrictions and limitations as prescribed in Chapter II of the Sales Tax Special Procedure Rules, 2007", the expression "and the electricity supplier shall deposit the amount so collected directly without adjusting against his input tax" shall be substituted; and
(iii) in the proviso, for full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided further that the Commissioner of Inland Revenue having jurisdiction shall issue order to the electricity supplier regarding exclusion of a person who is either a Tier-1 retailer, or not a retailer."; and
(f) for sub-section (9A), the following shall be substituted, namely:-
"(9A) Notwithstanding anything contained in this Act, Tier-1 retailers shall pay sales tax at the rate as applicable to the goods sold under relevant provisions of this Act or a notification issued there under:
Provided that the customers of a Tier-1 retailer shall be entitled to receive a cash back of up to five percent of the tax involved, from such date in the manner and to the extent, as may be prescribed by the Board.";
(3) in section 4,-
(a) for clause (c), the following shall be substituted, namely:-
"(c) such other goods, as the Federal Government may specify by notification in the official Gazette, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements:"; and
(b) clause (d) shall be omitted;
(4) in section 7,-
(a) in sub-section (2), in clause (i), for the words "for which a return is furnished", the expression ", or in case of supply of electricity or gas, a bill bearing his registration number and the address where the connection is installed" shall be substituted; and
(b) in sub-section (3), for the words "Federal Government", the word "Board, with the approval of the Minister-in-charge," shall be substituted;
(5) in section 7A, for sub-section (2), the following shall be substituted, namely:-
"(2) Notwithstanding anything contained in this Act or the rules made thereunder, in respect of the goods or class of goods specified in the Twelfth Schedule, the minimum value addition tax, against the value added by the registered person, shall be payable, at the rate and by the registered persons or class of registered persons, specified therein, subject to the conditions, limitations, restrictions and procedure specified therein:
Provided that the Federal Government may, through a notification published in the official Gazette, amend any provision of the said Twelfth Schedule.";
(6) in section 8,-
(a) in sub-section (1), for clause (m), the following shall be substituted, namely:-
"(m) the input goods attributable to supplies made to un-registered person, on pro-rata basis, for which sale invoices do not bear the NIC number of the buyer."; and
(b) in sub-section (6), for the words "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(7) in section 8B, in the second proviso, after the expression "sub-section (1)", the expression "and may also in the like manner relax the aforesaid limit to ninety-five per cent" shall be inserted;
(8) in section 10, in sub-section (1), in the second proviso, for the words "along with duty drawback at the rates", the words "at the fixed rates and in the manner as" shall be substituted;
(9) in section 13, in sub-section (2), for clause (a), the following shall be substituted, namely:-
"(a) the Federal Government may, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements, by notification in the official Gazette, exempt any supplies made or imports, of any goods or class of goods from the whole or any part of the tax chargeable under this Act, subject to the conditions and limitations specified therein;";
(10) in section 23, in sub-section (1),-
(a) after the word "particulars", the expression ", in Urdu or English language," shall be inserted;
(b) in clause (b), after the word "number", the expression ", or in case of supplies to unregistered person, NIC number," shall be inserted; and
(c) in clause (d), after the word "description", the expression ", including count, denier and construction in case of textile yarn and fabric," shall be inserted;
(11) in section 25, in sub-section (2), in second proviso, for the colon at the end, a full stop shall be substituted and the third proviso thereafter shall be omitted;
(12) in section 26, in sub-section (3), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that the approval under this sub-section shall not be required if revised return is filed within sixty days of filing of return and either the tax payable therein is more than the amount paid or the refund claimed therein is less than the amount as claimed, under the return sought to be revised.";
(13) in section 30A, in sub-section (1), for the word "post", the word "appoint" shall be substituted;
(14) in section 33, in the Table, in column (1), against serial number 1, in column
(2),-
(a) for the word "five", the word "ten" shall be substituted; and
(b) in the proviso, for the word "one", the word "two" shall be substituted;
(15) after section 33, the following new section shall be inserted, namely:-
"33A. Proceedings against persons.- (1) Subject to section 51, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in section 30 to 30DDD including any person subordinate to the aforesaid authorities, who wilfully and deliberately commits or omits an act which results in personal benefits and undue advantage to the authority or the person or taxpayer or both.
(2) Where proceedings under sub-section (1) have been initiated against a person or authority, the Board shall simultaneously intimate the relevant government agency to initiate criminal proceedings against the taxpayer.
(3) The proceedings under this section shall be without prejudice to any liability that the authority, person or taxpayer may incur under any other law for the time being in force.";
(16) in section 37B, -
(a) for the words "a Sales Tax Officer", wherever occurring, the words "an officer of Inland Revenue" shall be substituted;
(b) for the words "the Sales Tax Officer", wherever occurring, the words "an officer of Inland Revenue" shall be substituted; and
(c) in sub-section (13), for the words "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(17) for section 58, the following shall be substituted, namely:-
"58. Liability for payment of tax in case of private companies or business enterprises.-(1) Notwithstanding anything contained in the Companies Act, 2017 (XIX of 2017), where any private company or business enterprise is wound up and any tax chargeable on the company or business enterprise, whether before, or in the course, or after its liquidation, in respect of any tax period cannot be recovered from the company or business enterprise, every person who was an owner of, or partner in, or director of, or a shareholder, owning not less than ten per cent of the paid-up capital, in the company or business enterprise, as the case may be, during the relevant period shall jointly and severally with such persons, be liable for the payment of such tax.
(2) Any director, partner or shareholder, who pays tax under sub- section (1) shall be entitled to recover the tax paid by him from the company or business enterprise, or a share of the tax from other director or partner, or a share in the proportion of holding from another shareholder, as the case may be.
(3) The provisions of this Act shall apply to any amount due under this section as if it were tax due under an order for assessment made under this Act.";
(18) in section 67A, -
(a) the expression "(Private)", wherever occurring, shall be omitted; and
(b) in sub-section (12), for the expression "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(19) in section 71, in sub-section (1), for the expression "Notwithstanding anything contained in this Act, the Federal Government", the expression "subject to the provisions of this Act, the Board" shall be substituted;
(20) in section 72B, after sub-section (1), following new sub-section shall be inserted, namely:-
"(1A) Notwithstanding anything contained in this Act or any other law, for the time being in force, the Board shall keep the selection parameters confidential.";
(21) in the Third Schedule, in column (1), after Serial No. 37and entries relating thereto in columns (2) and (3), the following new Serial No. and corresponding entries relating thereto shall be added, namely:-
===============================================================================
"38. Household electrical goods, including Respective headings
air conditioners, refrigerators, deep
freezers, televisions, recorders and
players, electric bulbs, tube-lights,
electric fans, electric irons, washing
machines and telephone sets.
39. Household gas appliances, including Respective headings
cooking range, ovens, geysers and
gas heaters.
40. Foam or spring mattresses and other Respective headings
foam products for household use.
41. Paints, distempers, enamels, Respective headings
pigments, colours, varnishes, gums,
resins, dyes, glazes, thinners, blacks,
cellulose lacquers and polishes sold in
retail packing
42. Lubricating oils, brake fluids, Respective headings
transmission fluid, and other vehicular
fluids sold in retail packing.
43. Storage batteries excluding those sold Respective headings
to automotive manufacturers or
assemblers
44. Tyres and tubes excluding those sold Respective headings
to automotive manufacturers or
assemblers
45. Motorcycles Respective headings
46. Auto rickshaws Respective headings";
===============================================================================
(22) in the Sixth Schedule,-
(a) in Table-1, in column (1),-
(i) against Serial No. 2 and 3, in column (2), after the word "preserved", the expression ", or packed" shall be inserted;
(ii) against Serial No. 19, -
(A) in column (2), after the word "industry", the expression ", excluding the products of milling industry, other than wheat and meslin flour, as sold in retail packing bearing brand name or a trademark" shall be inserted; and (B) in column (3), the figure "1102.1000," shall be omitted;
(iii) Serial No. 36 and 37 and entries relating thereto in columns (2) and (3), shall be omitted;
(iv) against Serial No. 52A, in column (2), after the word "Goods", the expression ", excluding electricity and natural gas," shall be inserted;
(v) against Serial No. 72, in column (2), after the word "Meat", the expression "whether or not fresh, frozen or otherwise, preserved or packed" shall be added;
(vi) against Serial No. 73A, in column (2), the expression "04.01 and" shall be omitted;
(vii) against Serial No. 82, in column (2), after the word "offal", the expression ", excluding those sold in retail packing under a brand name or a trademark" shall be added;
(viii) against Serial No. 83, in column (2), after the word "fish", the expression ", excluding those sold in retail packing under a brand name or a trademark" shall be added;
(ix) against Serial No. 85, in column (2), after the word "milk", the expression ", excluding that sold in retail packing under a brand name or a trademark" shall be added; and
(x) after Serial No. 150 and entries relating thereto in columns (1), (2) and (3), following new Serial No and corresponding entries relating thereto shall be added, namely:-
==============================================================
"151. (a) Supplies; and Respective
(b) imports of plant, machinery, heading
equipment for installation in tribal
areas and of industrial inputs by
the industries located in the tribal
areas, as defined in the
Constitution of Islamic Republic
of Pakistan,-
as made till 30th June, 2023, to
which the provisions of the Act or
the notifications issued
thereunder, would have not
applied had Article 247 of the
Constitution not been omitted
under the Constitution (Twenty-
fifth Amendment) Act, 2018
(XXXVII of 2018):
Provided that, in case of
imports, the same shall be
allowed clearance by the
Customs authorities on
presentation of a post-dated
cheque for the amount of sales
tax payable under the Sales Tax
Act, 1990, and the same shall be
returned to the importer after
presentation of a consumption or
installation certificate, as the
case may be, in respect of
goods imported as issued by the
Commissioner Inland Revenue
having jurisdiction:
Provided further that if plant,
machinery and equipment, on
which exemption is availed under
this serial number, is transferred
or supplied outside the tribal
areas, the tax exempted shall be
paid at applicable rate on
residual value
153. Supplies of electricity, as made 2716.0000
from the day of assent to the
Constitution (Twenty-fifth
Amendment) Act, 2018, till 30th
June, 2023, to all residential and
commercial consumers in tribal
areas, and to such industries in
the tribal areas which were set
and started their industrial
production before 31st May,
2018, but excluding steel and
ghee or cooking oil industries
154. Steel billets, ingots, ship plates, Respective
bars and other long re-rolled headings";
profiles, on such imports and
supplies by the manufacturer on
which federal excise duty is
payable in sales tax mode
==============================================================
(b) in Table-2, in column (1), -
(i) against Serial No. 16, in column (2), the words "and ginned cotton" shall be omitted; and
(ii) after Serial number 24 and entries relating thereto in columns (1), (2) and (3), the following new Serial No. and corresponding entries relating thereto shall be added, namely:-
==============================================
"25. Cottonseed oil 1512.2100
and
1512.2900
26 Wheat Bran 2302.3000";
==============================================
(23) in the Eighth Schedule,-
(a) in Table-1, in column (1),-
(i) against S. No. 14, for the entries in columns (1), (2), (3), (4) and (5), the following shall be substituted, namely:-
=====================================================================
"14. Milk and cream, 0402.1000 10% Sold in retail
concentrated or packing
containing added and under a
sugar or other 0402.2000 brand
sweetening matter name";
=====================================================================
(ii) S. No. 18, 21and 22 and entries relating thereto in columns (2), (3), (4) and (5) shall be omitted;
(iii) against S. No. 27, in column (3), for the figure "8432.3090", occurring three times, the figure "8432.3900" shall be substituted;
(iv) S. No. 32 and entries relating thereto in columns (2), (3), (4) and (5) shall be omitted;
(v) against S. No. 56, in columns (4) and (5), for the figure "65", the figure "70" shall be substituted;
(vi) after S. No. 58 and entries relating thereto in columns (2), (3), (4) and (5), the following new S. No. and corresponding entries relating thereto shall be added, namely:-
====================================================================================
"59. Products of 1101.0010, 10% If sold in retail
milling industry 1101.0020, packing under
except wheat 1102.2000, a brand name
and meslin 1102.9000, or trademark
flour 1103.1100,
1103.1300,
1103.1900,
1104.2200,
1104.2300,
1104.2900
and
1104.3000
60. Fat filled milk 1901.9090 10% If sold in retail
packing under
a brand name
or trademark
61. Silver, in 7106.1000, 1% plus
unworked 7106.9110 2% value
condition and addition
7106.9190
62. Gold, in 7108.1100, 1% plus
unworked 7108.1210 2% value
condition and addition
7108.1290
63. Articles of 71.13 1.5% of No input tax
jewellery, or value of adjustment to
parts thereof, gold, plus be allowed
of precious 0.5% of except of the
metal or of value of tax paid on
metal clad with diamond, gold
precious used
metal. therein,
plus 3%
of making
charges
64. Prepared Respective 7.5% Supplies only,
Food, foodstuff headings subject to
and condition that
sweetmeats no input tax
supplied by shall be
restaurants, adjusted
bakeries,
caterers and
sweetmeat
shops
65. Ginned cotton Respective 10% If they are
headings integrated with
66. Supplies of Respective 15% FBR's online
finished heading system and
articles of data is
textile, textile transmitted to
made-ups, the FBR's
leather and computerized
artificial system in real
leather, as time in such
made by mode and
retailers manner as may
be prescribed
by the Board
67. LNG imported 2711.1100, 5% ";
for servicing 2711.2100
CNG sector
and local
supplies
thereof
====================================================================================
(24) in the Ninth Schedule, in the Table, in column (1), for S. No. 2 and entries relating thereto in columns (2), (3), (4) and (5), the following shall be substituted, namely:-
==================================================================================
"2. Cellular mobile phones or -
satellite phones to be
charged on the basis of
import value per set, or
equivalent value in rupees
in case of supply by the
manufacturer, at the rate
as indicated against each
category:--
A. Not exceeding US$ 30 Rs 135 Rs 135
B. Exceeding US$ 30 but Rs 1,320 Rs 1,320
not exceeding US$ 100
C. Exceeding US$ 100 but Rs 1,680 Rs 1,680
not exceeding US$ 200
D. Exceeding US$ 200 but Rs 1,740 Rs 1,740
not exceeding US$ 350
E. Exceeding US$ 350 but Rs 5,400 Rs 5,400
not exceeding US$ 500
F. Exceeding US$ 500 Rs 9,270 Rs 9,270 "; and
==================================================================================
(25) after Ninth Schedule, amended as aforesaid, the following new Schedules shall be added, namely:-
"The TENTH SCHEDULE
[See sub-section (1B) of section 3]
The tax on bricks, falling in PCT heading 6901.1000, shall be paid on fixed basis, on monthly return, at the rates specified in Table below:-
TABLE
==========================================================================
S. Region or area Tax payable
No. per month
==========================================================================
(1) (2) (3)
==========================================================================
1. Lahore, Rawalpindi and Islamabad districts Rs 12,500
2. Attock, Chakwal, Jehlum, Mandi Bahauddin, Rs 10,000
Sargodha, Gujrat, Sialkot, Narowal, Gujranwala,
Hafizabad, Sheikhupura, Kasur, Nankana Sahib,
Chiniot, Faisalabad, Jhang, Toba Tek Singh, Okara
and Sahiwal districts
3. Khushab, Mianwali, Bhakar, Layyah, Muzaffarghar Rs 7,500
Dera Ghazi Khan, Rajanpur, Multan, Lodhran,
Khanewal, Vehari, Bahawalpur, Pakpattan,
Bahawalnagar, Rahim Yar Khan districts; and
Sindh, Khyber-Pakhtunkhwa and Baluchistan
provinces
==========================================================================
The ELEVENTH SCHEDULE
[see sub-section (7) of section 3]
TABLE
The rates for withholding or deduction by the withholding agent
===================================================================================
S Withholding agent Supplier Rate or extent
No. category of deduction
===================================================================================
(1) (2) (3) (4)
===================================================================================
1. (a) Federal and provincial Registered 1/5th of Sales
government departments; persons Tax as shown
autonomous bodies; and public on invoice
sector organizations
(b) Companies as defined in the
Income Tax Ordinance, 2001 (XLIX
of 2001)
2. (a) Federal and provincial Person 1/10th of Sales
government departments; registered as a Tax as shown
autonomous bodies; and public wholesaler, on invoice
sector organizations dealer or
distributor
(b) Companies as defined in the
Income Tax Ordinance, 2001 (XLIX
of 2001)
3. Federal and provincial government Unregistered Whole of the
departments; autonomous bodies; persons tax involved or
and public sector organizations as applicable
to supplies on
the basis of
gross value of
supplies
4. Companies as defined in the Unregistered 5% of gross
Income Tax Ordinance, 2001 (XLIX persons value of
of 2001) supplies
5. Registered persons as recipient of Person Whole of sales
advertisement services providing tax applicable
advertisement
services
===================================================================================
The TWELFTH SCHEDULE
[See sub-section (2) of section 7A]
TABLE
=================================================================================
S. No. Goods or class of goods PCT Heading Rate
=================================================================================
(1) (2) (3) (4)
=================================================================================
1. All imported goods subject to Respective 3% ad valorem
exclusions as in conditions Heading
and procedure given after the
Table
=================================================================================
.Procedure and conditions:-
(1) The sales tax on account of minimum value addition as payable under this Schedule (hereinafter referred to as value addition tax), shall be levied and collected at import stage on all taxable goods as are chargeable to tax under section 3 of the Act or any notification issued thereunder at the rate specified in the Table in addition to the tax chargeable under section 3 of the Act or a notification issued thereunder:
(2) The value addition tax under this Schedule shall not be charged on,-
(i) Raw materials and intermediary goods meant for use in an industrial process which are subject to customs duty at 16% or 20% ad valorem under First Schedule to the Customs Act, 1969;
(ii) The petroleum products falling in Chapter 27 of Pakistan Customs Tariff as imported by a licensed Oil Marketing Company for sale in the country;
(iii) Registered service providers importing goods for their in-house business use for furtherance of their taxable activity and not intended for further supply; and
(iv) Cellular mobile phones or satellite phones.
(3) The value addition tax paid at import stage shall form part of input tax, and the importer shall deduct the same from the output tax due for the tax period, subject to limitations and restrictions under the Act, for determining his net liability. The excess of input tax over output tax shall be carried forwarded to the next tax period as provided in section 10 of the Act.
(4) In no case, the refund of excess input tax over output tax, which is attributable to tax paid at import stage, shall be refunded to a registered person.
(5) The registered person, if also dealing in goods other than imported goods, shall be entitled to file refund claim of excess carried forward input tax for a period as provided in section 10 or in a notification issued there under by the Board after deducting the amount attributable to the tax paid at import stage i.e. sum of amounts paid during the claim period and brought forward to claim period. Such deducted amount may be carried forward to subsequent tax period.".
12 Amendments of the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001).- In the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001), the following further amendments shall be made, namely:-
(1) in the Schedule, in column (1),-
(a) against S. No. 41,for the words "eighteen and a half", the word "seventeen" shall be substituted;
(b) after S. No. 42 and the entries relating thereto in columns (2), (3) and (4), the following new S. No. and corresponding entries relating thereto shall be added, namely:-
=====================================================================================
"43. Advertisement on hoarding 9802.9000 Sixteen percent
boards, pole signs and
signboards, and websites or
internet
44. Services provided by 9814.4000 Sixteen percent
landscape designers
45. Sponsorship services 9805.9100 Sixteen percent
46. Services provided or rendered - Sixteen percent
for purchase or sale or hire of
immovable property
47. Services provided or rendered 9815.2000 Sixteen percent
by legal practitioners and
consultants
48. Services provided by 9815.3000 Sixteen percent
accountants and auditors
49. Service provided or rendered 9819.1000, Sixteen percent
by Stockbrokers, future brokers 9819.2000,
and commodity brokers, 9819.5000,
money exchanger, surveyors, 9819.7000,
outdoor photographers, event 9819.8000,
photographers, videographers, 9819.9100,
art painters, auctioneers 9819.9500
(excluding value of goods) and and
registrar to an issue 9819.9090
50. Services provided by race - Sixteen percent
clubs:
Entry/ admission and
other services
51. Services provided or rendered 9815.9000 Sixteen percent
by corporate law consultants
52. Visa processing services, - Sixteen percent
including advisory or
consultancy services for
migration or visa application
filing services
53. Debt collection services and - Sixteen percent
other debt recovery services
54. Supply chain management or - Sixteen percent
distribution (including delivery)
services
55. Services provided or rendered - Sixteen percent
by persons engaged in inter-
city transportation or carriageof
goods by road or through
pipeline or conduit
56. Ready mix concrete services - Sixteen percent
57. Public relations services - Sixteen percent
58. Training or coaching services - Sixteen percent
other than education services
59. Cleaning services including 9822.2000, Sixteen
janitorial services, collection of 9822.3000 percent".
waste and processing of and
domestic waste 9822.9000
=====================================================================================
TABLE
====================================================================
S. No Taxable Income Rate of Tax
====================================================================
(1) (2) (3)
====================================================================
1. Where taxable income does not 0%
exceed Rs 600,000
2. Where taxable income exceeds 5% of the amount
Rs 600,000 but does not exceeding Rs 600,000
exceed Rs 1,200,000
3. Where taxable income exceeds Rs 30,000 plus 10% of
Rs 1,200,000 but does not the amount exceeding
exceed Rs 1,800,000 Rs 1,200,000
4. Where taxable income exceeds Rs 90,000 plus 15% of
Rs 1,800,000 but does not the amount exceeding
exceed Rs 2,500,000 Rs 1,800,000
5. Where taxable income exceeds Rs 195,000 plus 17.5%
Rs 2,500,000 but does not of the amount
exceed Rs 3,500,000 exceeding Rs
2,500,000
6. Where taxable income exceeds Rs 370,000 plus 20%
Rs 3,500,000 but does not of the amount
exceed Rs 5,000,000 exceeding Rs
3,500,000
7. Where taxable income exceeds Rs 670,000 plus 22.5%
Rs 5,000,000 but does not of the amount
exceed Rs 8,000,000 exceeding Rs
5,000,000
8. Where taxable income exceeds Rs 1,345,000 plus 25%
Rs 8,000,000 but does not of the amount
exceed Rs 12,000,000 exceeding Rs
8,000,000
9. Where taxable income exceeds Rs 2,345,000 plus
Rs 12,000,000 but does not 27.5% of the amount
exceed Rs 30,000,000 exceeding Rs
12,000,000
10. Where taxable income exceeds Rs 7,295,000 plus 30%
Rs 30,000,000 but does not of the amount
exceed Rs 50,000,000 exceeding Rs
30,000,000
11. Where taxable income exceeds Rs 13,295,000 plus
Rs 50,000,000 but does not 32.5% of the amount
exceed Rs 75,000,000 exceeding Rs
50,000,000
12. Where taxable income exceeds Rs 21,420,000 plus
Rs 75,000,000 35% of the amount
exceeding Rs
75,000,000";
====================================================================
(b) in Division II, in clause (i), in the third proviso,-
(i) for the word "and", occurring for the first time, a "comma" shall be substituted;
(ii) for the expression "thereafter as set out in the following Table, namely:-", the expression "29% for tax year 2019 and onwards." shall be substituted; and
(iii) the Table shall be omitted.
(c) in Division III,-
(i) in paragraph (a), for the figure "7.5" the figure "15"shall be substituted;
(ii) in paragraph (b), for the expression " (a) and (c)" the expression "(a) and (d)" shall be substituted;
(iii) paragraph (c) and provision thereafter shall be omitted;
(iv) after paragraph (c), omitted as aforesaid, the following new paragraph shall be added, namely:-
"(d) 25% in the case of a person receiving dividend from a company where no tax is payable by such company due to exemption of income or carry forward of business losses under Part VIII of Chapter III or claim of tax credits under Part X of Chapter III.";
(d) in Division IIIA, for the Table, the following shall be substituted,
namely:-
"Table
=======================================================================
S. No. Profit on debt Rate of tax
=======================================================================
(1) (2) (3)
=======================================================================
1. Where profit on debt does not exceed 15%
Rs 5,000,000
2. Where profit on debt exceeds Rs 5,000,000 but 17.5%
does not exceed Rs 25,000,000
3. Where profit on debt exceeds Rs 25,000,000 20%
but does not exceed Rs 36,000,000
=======================================================================
(e) in Division VIA, in the Table, in column (1),-
(i) against S.No.5, in column (2), after the figure"2,000,000", the expression "but does not exceed Rs 4,000,000" shall be inserted;
(ii) after S. No. 5 and entries relating thereto in columns (2) and (3), the following new serial numbers and corresponding entries relating thereto shall be inserted, namely:-
===========================================================================
"6. Where the gross amount of rent Rs 610,000 plus 25 per cent
exceeds Rs 4,000,000 but does of the gross amount
not exceed Rs 6,000,000. exceeding Rs 4,000,000
7. Where the gross amount of rent Rs 1,110,000 plus 30 per
exceeds Rs 6,000,000 but does cent of the gross amount
not exceed Rs 8,000,000 exceeding Rs 6,000,000
8. Where the gross amount of rent Rs 1,710,000 plus 35
exceeds Rs 8,000,000 percent of the gross amount
exceeding Rs 8,000,000";
===========================================================================
(f) in Division VII,n
(i) for the Table, excluding the provisos, the following new Table shall be substituted,-
====================================================================================
S.No Period Tax Tax Tax Tax Years
Year Year Year 2018, 2019
2015 2016 2017 and 2020
Securities Securities
acquired acquired
before after
01.07.2016 01.07.2016
====================================================================================
(1) (2) (3) (4) (5) (6) (7)
====================================================================================
1. Where holding period 12.5% 15% 15% 15% 15%
of a security is less
than twelve months
2. Where holding period 10% 12.5% 12.5 12.5
of a security is twelve % %
months or more but
less than twenty-four
months
3. Where holding period 0% 7.5% 7.5% 7.5%
of a security is twenty
- four months or more
but the security was
acquired on or after
1st July, 2013.
4. Where the security 0% 0% 0% 0% 0%
was acquired before
1st July, 2013
5. Future commodity 0% 0% 5% 5% 5%";
contracts entered into and
by the members of
Pakistan Mercantile
Exchange
====================================================================================
(g) in th
(ii) in the fifth proviso, after the full stop at the end, the following explanation shall be added, namely:-
"Explanation.- For removal of doubt, it is clarified that, the provisions of this proviso shall be applicable only in case of a mutual fund or collective investment scheme or a REIT scheme.";
(h) Division VIII shall be omitted; and
(i) in Division IX, in the Table, in column (1), against serial numbers 1 to 4, for the entries in column (3), the following shall respectively be substituted, namely:-
======
0.75%
0.25%
0.3%
1.5% ;
======
(B) in Part II,
(a) for the Table, the following shall be substituted, namely-
======================================================================
S.No. Persons Rate
======================================================================
(1) (2) (3)
======================================================================
1. (i) Industrial undertaking 1% of the import
importing remeltable steel value as increased
(PCT Heading 72.04) and by customs-duty,
directly reduced iron for its sales tax and federal
own use; excise duty
(ii) Persons importing
potassic fertilizers in
pursuance of Economic
Coordination Committee of
the cabinet's decision
No.ECC-155/12/2004
dated the 9th December,
2004;
(iii) Persons importing urea;
(iv) Manufacturers covered
under Notification No.
S.R.O. 1125(I)/2011 dated
the 31st December, 2011
and importing items
covered under S.R.O.
1125(I)/2011 dated the
31st December, 2011;
(v) Persons importing Gold;
(vi) Persons importing Cotton;
and
(vii) Persons importing LNG]
2. Persons importing pulses 2% of the import
value as increased
by customs-duty,
sales tax and federal
excise duty
3. Commercial importers covered 3% of the import
under Notification No. S.R.O. value as increased
1125(I)/2011 dated the 31st by customs-duty,
December, 2011 and importing sales tax and federal
items covered under S.R.O. excise duty
1125(I)/2011 dated the 31st
December, 2011.
4. Persons importing coal 4%
5. Persons importing finished 4%
pharmaceutical products that
are not manufactured otherwise
in Pakistan, as certified by the
Drug Regulatory Authority of
Pakistan
6. Ship breakers on import of 4.5%
ships
7. Industrial undertakings not 5.5%
covered under S. Nos. 1 to 6
8. Companies not covered under 5.5%
S. Nos. 1 to 7
9. Persons not covered under S. 6%"; and
Nos. 1 to 8
======================================================================
(b) in the proviso, the expression "being a filer;", wherever occurring, shall be omitted;
(C) in Part III,-
(a) in Division I,-
(i) in paragraph (a), for the expression "7.5%" the expression "15%" shall be substituted;
(ii) in paragraph (b), the words "for filers" shall be omitted;
(iii) paragraph (c) and provisos thereafter shall be omitted;
(b) in Division IA,-
(i) for the figure "10", the figure "15" shall be substituted;
(ii) the expression "for filers and "17.5%" of the yield orprofit paid, for non-filers:" shall be omitted; and
(iii) for the proviso, the following shall be substituted, namely:-
"Provided that the rate shall be 10% in cases where yield or profit paid is rupees five hundred thousand rupees or less.";
(c) in Division IB, paragraph (d) shall be omitted;
(d) in Division II,-
(i) in clause (1), the expression "in case a person is a filer and 13% in case the person is a non-filer" shall be omitted;
(ii) in clause (4),-
(a) in sub-clause (i), the expression ", if the company is a filer and 7% if the company is a non-filer" shall be omitted; and
(b) in sub-clause (ii), the expression ", if the person is a filer and 7.75% if the person is a non-filer" shall be omitted;
(iii) in clause (5), in sub-clause (ii),-
(a) in paragraph (a), the expression ", if the company is a filer and 14% if the company is a non-filer" shall be omitted; and
(b) in paragraph (b), the expression ", if the person a filer and 17.5% if the person is a non-filer" shall be omitted;
(iv) in clause (6), in sub-clause (ii),-
(a) the expression "in case a person is a filer;" shall be omitted; and
(b) the expression "and 13% if the person is a non filer," shall be omitted;
(e) in Division III,-
(i) in clause (1), in sub-clause (b),-
(a) in paragraph (i), the expression ", if the company is a filer and 8% if the company is a non-filer" shall be omitted; and
(b) in paragraph (ii), the expression ", if the person is a filer and 9% if the person is a non-filer" shall be omitted;
(ii) for clause (2), the following shall be substituted, namely:-
"(2) The rate of tax to be deducted from a payment referred to in clause (b) of sub-section (1) of section 153 shall be-
(i) 4% of the gross amount payable, in the cases of transport services, freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services, software development services, IT services and IT enabled services as defined in clause (133) of Part I of the Second Schedule, tracking services, advertising services (other than by print or electronic media), share registrar services, engineering services, car rental services, building maintenance services, services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited inspection, certification, testing and training services;
(ii) in case of rendering of or providing of services other than sub-clause (i),-
(a) in case of a company, 8% of the gross amount payable;
(b) in any other case, 10% of the gross amount payable; and
(c) in respect of persons making payments to electronic and print media for advertising services,1.5% of the gross amount payable;";
(iii) in clause (3),-
(a) in sub-clause (ii), the expression ", if the company is a filer and 14% if the company is a non-filer" shall be omitted; and
(b) in sub-clause (iii), the expression ", if the person is a filer and 15% if the person is a non filer" shall be omitted;
(f) after the omitted Division IIIA, the following new Division shall be inserted, namely:-
"Division IIIB
Royalty paid to resident persons
The rate of tax to be deducted under section 153B shall be 15% of the gross amount payable.";
(g) in Division V, in clause (a), in the Table, in column (1), -
(i) against S.No.5, in column (2), after the figure "2,000,000", the expression "but does not exceed Rs 4,000,000" shall be inserted;
(ii) after S. No.5 and entries relating thereto in columns (2) and (3), the following new serial numbers and corresponding entries relating thereto shall be inserted, namely:-
==========================================================================
"6. Where the gross amount of rent Rs 610,000 plus 25 per
exceeds Rs 4,000,000 but does cent of the gross amount
not exceed Rs 6,000,000. exceeding Rs 4,000,000
7. Where the gross amount of rent Rs 1,110,000 plus 30 per
exceeds Rs 6,000,000 but does cent of the gross amount
not exceed Rs 8,000,000 exceeding Rs 6,000,000
8. Where the gross amount of rent Rs 1,710,000 plus 35
exceeds Rs 8,000,000 percent of the gross
amount exceeding Rs
8,000,000";
==========================================================================
(iii) in clause (b), the expression "for filers and 17.5% of the gross amount of rent for non-filers" shall be omitted;
(h) in Division VI, in clause (1), the expression "for filers and 25% of the gross amount paid for non-filers" shall be omitted;
(i) in Division VIA, the expression "for filers and 17.5% for non filers" shall be omitted;
(j) in Division VIB, the expression "for filers and six per cent for non-filers" shall be omitted;
(D) in Part IV,-
(a) for Division II, the following shall be substituted, namely:-
"Division II
BROKERAGE AND COMMISSION
The rate of tax for deduction or collection under section 233 shall be as set out in the following Table, namely:-
TABLE
==========================================================================
S. No. Person Rate of tax
==========================================================================
(1) (2) (3)
==========================================================================
1. Advertising agents 10%
2. Life insurance agents where commission 8%
received is less than Rs 0.5 million per
annum
3. Persons not covered in 1 and 2 above 12%";
==========================================================================
(b) in Division III,-
(i) in clause (1), the expression "for filer and four rupees per kilogram of the laden weight for non-filer" shall be omitted;
(ii) in clause (2), for the Table, the following shall be substituted, namely:-
=====================================================================
"S. Capacity Rs per seat
No. per annum
=====================================================================
(1) (2) (3)
=====================================================================
1. Four or more persons but less than ten 50
persons.
2. Ten or more persons but less than 100
twenty persons.
3. Twenty persons or more. 300";
=====================================================================
(iii) for clause (3), the following shall be substituted, namely:-
"(3) In case of other private motor vehicles shall be as set out in the following Table, namely:-
===================================================
S. No. Engine Capacity Rs per seat
per annum
===================================================
(1) (2) (3)
===================================================
1. upto 1000cc Rs 800
2. 1001cc to 1199cc Rs 1,500
3. 1200cc to 1299cc Rs 1,750
4. 1300cc to 1499cc Rs 2,500
5. 1500cc to 1599cc Rs 3,750
6. 1600cc to 1999cc Rs 4,500
7. 2000cc & above Rs 10,000";
===================================================
(iv) in clause (4), for the Table, the following shall be substituted, namely:-
=============================================
"S. Engine Capacity Rs per seat
No. per annum
=============================================
(1) (2) (3)
=============================================
1. upto 1000cc Rs 10,000
2. 1001cc to 1199cc Rs 18,000
3. 1200cc to 1299cc Rs 20,000
4. 1300cc to 1499cc Rs 30,000
5. 1500cc to 1599cc Rs 45,000
6. 1600cc to 1999cc Rs 60,000
7. 2000cc & above Rs 120,000";
=============================================
(c) in Division VI, for the expression "non-filer", the words "the person whose name is not appearing in the active taxpayers' list" shall be substituted;
(d) in Division VIA, for the expression "non-filer", the words "the person whose name is not appearing in the active taxpayers' list" shall be substituted;
(e) in Division VII,- (i) for clause (1), the following shall be substituted, namely:-
"(1) The rate of tax under sub-sections (1) and (3) of section 231B shall be as set out in the following
=============================================
S. No. Engine capacity Rs per seat
per annum
=============================================
(1) (2) (3)
=============================================
1. upto 850cc Rs 7,500
2. 851cc to 1000cc Rs 15,000
3. 1001cc to 1300cc Rs 25,000
4. 1301cc to 1600cc Rs 50,000
5. 1601cc to 1800cc Rs 75,000
6. 1801cc to 2000cc Rs 100,000
7. 2001cc to 2500cc Rs 150,000
8. 2501cc to 3000cc Rs 200,000
9. Above 3000cc Rs 250,000";
=============================================
(ii) for clause (2), the following shall be substituted, namely:-
"(2) The rate of tax under sub-sections
(2) of section 231B shall be as follows:-
=================================================
S. No. Engine Capacity Rs per seat
per annum
=================================================
(1) (2) (3)
=================================================
1. upto 850cc -
2. 851cc to 1000cc Rs 5,000
3. 1001cc to 1300cc Rs 7,500
4. 1301cc to 1600cc Rs 12,500
5. 1601cc to 1800cc Rs 18,750
6. 1801cc to 2000cc Rs 25,000
7. 2001cc to 2500cc Rs 37,500
8. 2501cc to 3000cc Rs 50,000
9. Above 3000cc Rs 62,500";
=================================================
(f) in Division VIII, the expression "for filers and 15% of the gross sale price of any property or goods sold by auction for non-filers" shall be omitted;
(g) in Division X, the expression "for filers and 2 % of the gross amount of the consideration received for non-filers" shall be omitted;
(h) for Division XIV, the following shall be substituted, namely:-
"Division XIV
Advance tax on sale to distributors, dealers or wholesalers
The rate of collection of tax under section 236G shall be as set out in the following table, namely:-
TABLE
=======================================================
S.No. Category of sale Rate of tax
=======================================================
(1) (2) (3)
=======================================================
1. Fertilizers 0.7%
2. Other than fertilizers 0.1%";
=======================================================
(i) for Division XV, the following shall be substituted, namely:-
"Division XV
Advance tax on sale to retailers
The rate of collection of tax under section 236H on the gross amount of sales shall be as set out in the following table, namely:-
TABLE
==================================================
S. No. Category of sale Rate of tax
==================================================
(1) (2) (3)
==================================================
1. Electronics 1%
2. Others 0.5%";
==================================================
(j) in Division XVA, the expression "for filers and 1% for non-filers" shall be omitted;
(k) for Division XVII, the following shall be substituted, namely:-
"Division XVII
Advance tax on dealers, commission agents and arhatis, etc.
The amount of collection of tax under section 236J shall be as set out in the following Table, namely:-
TABLE
============================================
Group or Class Amount of tax
(per annum)
============================================
Group or Class A Rs 100,000
Group or Class B Rs 75,000
Group or Class C Rs 50,000
Any other category Rs 50,000";
============================================
(l) for Division XVIII, the following shall be substituted, namely:-
""Division XVIII
Advance tax on purchase of immovable property
The rate of tax to be collected under section 236K shall be 1% of the fair market value.";
(m) in Division XXI, for the expression "non-filer", the words "persons who are not appearing in the active taxpayers' list" shall be substituted;
(n) in Division XXV, for the expression "non-filer", the words "persons who are not appearing in the active taxpayers' list" shall be substituted;
(o) in Division XXVI, for the expression "non-filers and 0% for filers", the words " persons who are not appearing in the active taxpayers' list" shall be substituted;
(p) in Division, XXVII, the expression "for filers and 3% for non-filers" shall be omitted;
(61) in the Second Schedule,-
(A) in Part I,-
(a) in clause (39A), after the word "as", the words and commas "internal security allowance, compensation in lieu of bearer allowance," shall be inserted;
(b) in clause (61), after sub-clause (liv), the following new clause shall be added, namely:-
"(lv) Layton Rahmatullah Benevolent Trust (LRBT). (lvi) Akhuwat.";
(c) in clause (66), after clause (lxv), the following new clauses shall be added, namely:- "(lxvi) Akhuwat. (lxvii) Audit Oversight Board."
(d) in clause (99A), in the proviso, after the figure "2020" at the end, a colon shall be added and thereafter a new proviso shall be added, namely:-
"Provided further that the profit and gains on sale of immovable property to a rental REIT scheme shall be exempt up to the 30th day of June, 2021."
(d) in clause (103C), for the words "has availed", the words "is eligible for" shall be substituted.;
(e) after clause (114), the following new clause shall be added, namely:-
"(114B) Profit and gains accruing to persons mentioned in proviso to sub-section (1) of section 236C in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of services rendered by the Shaheed or the person who dies in service.";
(f) after the omitted clause (145), the following new clause shall be added, namely:-
"(146) Any income which was not chargeable to tax prior to the commencement of the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018) of any individual domiciled or company and association of persons resident in the Tribal Areas forming part of the Provinces of Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Constitution with effect from the 1st day of June, 2018 to the 30th day of June, 2023 (both days inclusive); and
(B) in Part III,-
(a) in clause (2),-
(i) the words "training and" shall be omitted;
(ii) for the figure "40", the figure "25" shall be substituted; and
(iii) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be inserted, namely:-
"Provided that this clause shall not apply to teachers of medical profession who derive income from private medical practice or who receive share of consideration received from patients.";
(b) after clause (9), the following new clause shall be added, namely:-
"(9A) The amount of tax payable on income chargeable under the head, "Capital Gains" on disposal of immovable property shall be reduced by fifty percent on the first sale of immovable property acquired or allotted to ex-servicemen and serving personnel of Armed Forces or ex-employees or serving personnel of Federal and Provincial Governments, being original allottees of the immovable property, duly certified by the allotment authority.";
(C) in Part IV,-
(a) in clause (43E), for the figure "2.5", the figure "3" shall be substituted;
(b) clauses (81) and (81A) shall be omitted;
(c) clause (94) shall be omitted;
(d) clause (105) shall be omitted;
(e) after clause (109), the following new clause shall be added, namely;-
"(110) The provisions of sections in Division III of Part V of Chapter X and Chapter XII of this Ordinance for deduction or collection of withholding tax which were not applicable prior to commencement of the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018) shall not apply to individual domiciled or company and association of persons resident in the Tribal Areas forming part of the Provinces of Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Constitution with effect from the 1st day of June, 2018 to the 30th day of June, 2023 (both days inclusive).";
(62) in the Third Schedule, in Part II, in paragraph (1), the expression "and 15% for buildings" shall be omitted;
(63) in the Fourth Schedule, after rule 6D, the following new rule shall be inserted, namely:-
"6E. Notwithstanding anything contained in this Schedule, the Commissioner shall be authorized to examine and amend the amount of income as disclosed in the financial statement presented to the Securities and Exchange Commission of Pakistan with respect to commission paid and claimed for losses.";
(64) in the Seventh Schedule,-
(A) in rule 1,-
(a) in clause (c), after the second proviso, the following explanation shall be added, namely:-
"Explanation.- For removal of doubt, it is clarified that-
(i) provision for advances and off balance sheet items allowed under this clause, at the rate of 1 percent or 5 percent, as the case may be, shall be exclusive of reversals of such provisions;
(ii) reversal of "bad debts" classified as "doubtful" or " loss" are taxable as the respective provisions have been allowed under this clause; and
(iii) with effect from tax year 2020 and onward; reversal of "bad debts" classified as " loss" are taxable as the respective provisions have been allowed under this clause."
(b) in clause (d), after the expression, ""sub-standard"", the expression "or "doubtful"" shall be inserted;
(c) in clause (e), the expression "as 'doubtful' or" shall be omitted;
(d) after clause (h), the following explanation shall be added, namely:-
"Explanation.- For removal of doubt, it is clarified that nothing contained in this Schedule shall be so construed as to restrict power of Commissioner, while conducting audit of the income tax affairs under section 177, to call for record or such other information and documents as he may deem appropriate in order to examine accounts and records to conduct enquiry into expenditure, income, assets and liabilities of a banking company and all provisions of this Ordinance shall be applicable accordingly.";
(B) after omitted rule 6B, the following new rule shall be inserted, namely:-
"6C. Enhanced rate of tax on taxable income from Federal Government securities.- (1) The taxable income arising from additional income earned from additional investment in Federal Government securities for the tax years 2020 and onwards, shall be taxed at the rate of 37.5% instead of the rate provided in Division II of Part I of the First Schedule-
(2) A banking company shall furnish a certificate from external auditor along with accounts while e-filing return of Income certifying the amount of such money invested in Federal Government securities in preceding tax year, additional investments made for the tax year and net mark-up earned from such additional investments for the tax year.
(3) Notwithstanding anything contained in this Ordinance, the Commissioner may require the banking company to furnish details of the investments in Federal Government securities to determine the applicability of the enhanced rate of tax.
(4) "Additional income earned" means any average earned in addition to average amount of such income earned from investment in Federal Government securities by the bank for the tax year.
(5) The taxable income arising from additional investment under sub-rule (1) shall be determined according to the following formula, namely:-
Taxable income subject to enhanced rate of tax = A x B/C
Where-
A . is taxable income of the banking company;
B is net mark up income earned from such additional income earned for the tax year as declared in the annual accounts; and
C is total of the net mark-up and non mark-up income of the banking company as per accounts.";
(C) in rule (7C), for full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that brought forward losses, if any, shall be excluded from income computed under this Schedule for the purpose of section 4B of this Ordinance."; and
(D) in rule 7D, in sub-rule (1), the words "interest income" shall be omitted;
(65) after the Ninth Schedule, the following new Schedule shall be added, namely:-
"THE TENTH SCHEDULE
(See section 100BA)
RULES FOR PERSONS NOT APPEARING IN THE ACTIVE TAXPAYERS' LIST
1. Rate of deduction or collection of tax-Where tax is required to be deducted or collected under any provision of this Ordinance from persons not appearing in the active taxpayers' list, the rate of tax required to be deducted or collected, as the case may be, shall be increased by hundred percent of the rate specified in the First Schedule to this Ordinance.
2. Persons not required to file return or statement.-(1) Where the withholding agent is satisfied that a person not appearing in the active taxpayers' list was not required to file a return of income under section 114, or a statement under sub-section (4) of section 115, as the case may be, he shall before collecting or deducting tax under this Ordinance, furnish to the Commissioner a notice in writing electronically setting out-
(a) the name, CNIC or NTN and address of the person not appearing in the active taxpayers' list;
(b) the nature and amount of the transaction on which tax is required to be collected or deducted; and
(c) reason on the basis of which it is considered that the person was not required to file return or statement, as the case may be.
(2) The Commissioner, on receipt of a notice under sub-rule (1), shall within thirty days pass an order accepting the contention or making the order under sub-rule (3).
(3) Where the withholding agent has notified the Commissioner under sub-rule (1) and the Commissioner has reasonable grounds to believe that the person not appearing in the active taxpayers' list was required to file return or statement, as the case may be, the Commissioner may, by an order in writing, direct the withholding agent to deduct or collect tax under rule 1:
Provided that in case the Commissioner does not pass any order within thirty days of receipt of notice under sub-rule (1), the Commissioner shall be deemed to have accepted the contention under sub-rule (2) and approval shall be treated to have been granted.
3. Provisional assessment.-(1) Where for a tax year a person's tax has been collected or deducted in accordance with rule 1 and the person fails to file return of income or statement, as the case may be, for that tax year within the due date provided in section 118 or as extended by the Board, the Commissioner shall notwithstanding anything contained in sub-sections (3) and (4) of section 114 or sub-section (5) of section 115, within sixty days of the due date provided in section 118 or as extended by the Board make a provisional assessment of the taxable income of the person and issue a provisional assessment order specifying the taxable income assessed and tax due thereon.
(2) In making the provisional assessment under sub-rule (1), the
Commissioner shall impute taxable income on the amount of tax deducted or collected under rule 1 by treating the imputed income as concealed income for the purposes of clause (d) of sub-section (1) of section 111.
4. Finalization or abatement of provisional assessment.-(1) The provisional assessment under rule 3, shall be treated as the final assessment order after the expiry of forty-five days from the date of service of order of provisional assessment and the provisions of this Ordinance shall apply accordingly.
(2) The provisional assessment shall stand abated and shall be taken to be assessment finalized under sub-section (1) of section 120 where the returns of income for the relevant tax year and the preceding tax year along with prescribed forms, statements or documents are filed by the person within a period of forty-five days of receipt of provisional assessment order.
(3) Where returns have been filed before provisional assessment or under sub-rule (2), the tax deducted or collected under rule 1 shall be adjustable against the tax payable in the return filed for the relevant tax year.
5. Where the provisional assessment has been treated as final assessment under sub-rule (1) of rule 4, the Commissioner may within thirty days of the final assessment initiate proceedings for imposition of penalties under section 182 on account of non-furnishing of return and concealment of income.
6. For the purposes of this Schedule, imputed income means-
(a) income for individuals and association of persons which would
have resulted in the amount of tax given in paragraph (1) of Division I of the First Schedule equal to the tax collected or deducted under rule 1 for not appearing in the active taxpayers' list; or
(b) income for companies which would have resulted in the amount of tax given in Division II of the First Schedule equal to the tax collected or deducted at the higher rate under rule 1 for not appearing in the active taxpayers' list.
7. Where the withholding agent fails to furnish in the withholding statement complete or accurate particulars of persons not appearing on active taxpayers' list, the Commissioner shall initiate proceedings under sections 182 and 191 against the withholding agent within thirty days of filing of withholding statement under section 165.
8. Amendment of assessment.- (1) The Commissioner may amend an assessment order where on the basis of definite information acquired from an audit or otherwise, the Commissioner is satisfied that-
(a) any income chargeable to tax has escaped assessment; or
(b) total income has been under-assessed, or assessed at too low a rate, or has been the subject of excessive relief or refund; or
(c) any amount under a head of income has been misclassified.
(2) Notwithstanding the provisions of sub-rule (1), where a provisional assessment has been treated as final assessment or where in response to the provisional assessment, return has been filed within forty- five days or where assessment has been amended under sub-rule (1) and the assessment order is considered erroneous in so far it is prejudicial to the interest of revenue, the Commissioner may, after making or causing to be made, such enquiries as he deems necessary, amend the assessment order.
(3) For the purposes of sub-rule (1), "definite information" shall have the same meaning as defined in sub-section (8) of section 122.
9. Provisions of Ordinance to apply-The provisions of this Ordinance not specifically dealt with in the aforesaid rules shall apply, mutatis mutandis, in the case of proceedings against the persons not appearing on active taxpayers' list.
10. The provisions of this Schedule shall not apply on tax collectible or deductible in case of the following sections:-
(a) tax deducted under section 149;
(b) tax deducted under section 152 other than sub-section (1),(1AA), (2), (2A)(b) and (2A)(c) of section 152
(c) tax collected or deducted under section 154;
(d) tax deducted under section 155;
(e) tax deducted under section 156B.
(f) tax deducted under section 231A;
(g) tax deducted under section 231AA;
(h) tax collected under section 233AA;
(i) tax deducted under section 235;
(j) tax deducted under section 235A;
(k) tax collected under section 235B;
(l) tax collected under section 236B;
(m) tax collected under section 236D;
(n) tax collected under section 236F;
(o) tax collected under section 236I;
(p) tax collected under section 236J ;
(q) tax collected under section 236L;
(r) tax collected under section 236P;
(s) tax collected under section 236Q;
(t) tax collected under section 236R;
(u) tax collected under section 236U;
(v) tax collected under section 236V;
(w) tax collected under section 236X.".
14 Amendments of the Federal Excise Act, 2005.- In the Federal Excise Act, 2005, the following further amendments shall be made, namely:-
(1) in section 2, in clause (23a), for the words "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(2) in section 3, after sub-section (5), the following new sub-section shall be inserted, namely:í "(5A) In respect of goods, specified in the Fourth Schedule, the minimum production for a month shall be determined on the basis of a single or more inputs as consumed in the production process as per criterion specified in the Fourth Schedule and if minimum production so determined exceeds the actual supplies for the month, such minimum production shall be treated as quantity supplied during the month and the liability to pay duty shall be discharged accordingly.";
(3) in section 7, in sub-section (2), for the words "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(4) in section 16, for sub-section (2), the following shall be substituted, namely:í "(2) The Federal Government may, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements, by notification in the official Gazette, exempt subject to such conditions as may be specified therein, any goods or class of goods or any services or class of services from the whole or any part of the duty leviable under this Act.";
(5) in section 19, in sub-section (2),-
(a) in clause (b), the word "and" at the end shall be omitted;
(b) in clause (c), after the semi-colon at the end, the word "and" shall be added, and thereafter, following new clause shall be added, namely:-
"(d) a person who sells cigarettes in retail at a price lower than the retail price plus the amount of sales tax as printed thereon,";
(6) after section 19, amended as aforesaid, the following new section shall be inserted, namely:í
"19A. Proceedings against persons.- (1) Subject to section 41, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in section 29 including any person subordinate to the aforesaid authorities, who wilfully and deliberately commits or omits an act which results in personal benefits and undue advantage to the authority or the person or taxpayer or both.
(2) Where proceedings under sub-section (1) have been initiated against a person or authority, the Board shall simultaneously intimate the relevant government agency to initiate criminal proceedings against the taxpayer.
(3) The proceedings under this section shall be without prejudice to any liability that the authority, person or taxpayer may incur under any other law for the time being in force.
(7) in section 22, in sub-section (13), for the words "Federal Government", the expression "Board, with the approval of the Minister-in-charge," shall be substituted;
(8) In the First Schedule,-
(I) in Table, in column (1),-
(a) against S. No. 1, in column (4), for the figure "sixteen", the figure "seventeen" shall be substituted;
(b) for S. No. 2, and entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:-
===========================================================================
"2. Vegetable ghee and Respective
cooking oil heading
(a) in retail packing Seventeen
per cent of
retail price
(b) not in retail packing Seventeen
per cent ad val.";
===========================================================================
(c) against S. No. 4, 5 and 6, in column (4), for the words "eleven and half", the word "fourteen" shall be substituted;
(d) against S. No. 7, in column (2), after the word "tobacco", following explanation shall be added, namely:-
"Explanation:- The duty payable under this serial number shall always be borne by the cigarette manufacturer and the burden thereof shall not be passed on to the tobacco grower in any manner.";
(e) for S. No. 9 and 10and the entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:-
===========================================================================
"9. Locally produced 24.02 Rupees five thousand
cigarettes if their on- two hundred per
pack printed retail price thousand cigarettes
exceeds five thousand
nine hundred and sixty
rupees per thousand
cigarettes.
10. Locally produced 24.02 Rupees one thousand
cigarettes if their on- six hundred and fifty
pack printed retail price per thousand
does not exceed five cigarettes";
thousand nine hundred
and sixty rupees per
thousand cigarettes.
===========================================================================
(f) S. No. 10a and entries relating thereto in columns (2), (3) and (4) shall be omitted;
(g) against S. No. 13, in column (4), for the words "one rupee and fifty paisa", the words "two rupees" shall be substituted;
(h) against S. No. 31, in column (4), for the words "Seventeen rupees and eighteen paisa per hundred cubic meters", the expression "ten rupees per Million British Thermal Unit (MMBTu)" shall be substituted;
(i) S. No. 54 and entries relating thereto in columns (2), (3) and (4) shall be omitted; (j) for S. No. 55B and entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:-
=============================================================================
"55B Locally manufactured or assembled 87.03
motor cars, SUVs and other motor
vehicles, principally designed for the
transport of persons (other than
those of headings 87.02), including
station wagons and racing cars:
(a) of cylinder capacity up to 1000cc 2.5% ad
val.
(b) of cylinder capacity from 1001cc 5% ad
to 2000cc val.
(c) of cylinder capacity 2001cc and 7.5% ad
above val.
=============================================================================
(k) after S. No. 56 and the entries relating thereto in columns (2), (3) and (4), the following new serial numbers and corresponding entries relating thereto shall be added, namely:-
=======================================================================
"57 Fruit juices, syrups and Respective Five percent
squashes, waters headings of retail price.
containing added sugar
or sweetening matter
etc. excluding mineral
and aerated waters
58 Steel Billets, ingots, Respective Seventeen
ship plates, bars and headings percent ad
other long re-rolled val."; and
products
=======================================================================
(l) after Table-I, under the existing Restriction-1-Reduction,after the figure "9" the expression "and 10" shall be inserted; and
(II) in Table II, in column (1), against S. No. 3, in column (2), under clause (a),-
(i) against sub-clause (i), in column (4), for the words "Two thousand", the words "fifteen hundred" shall be substituted; and
(ii) against sub-clause (ii), in column (4), for the words "One thousand two hundred and fifty", the words "nine hundred" shall be substituted.
(9) in Second Schedule, in the table, in column (1), after omitted serial number 3 and entries relating thereto, the following new serial number and entries relating thereto shall be added in columns (1), (2) and (3), namely:-
=====================================================================
"4. Steel Billets, ingots, ship plates, bars Respective
and other long re-rolled products headings";
=====================================================================
(10) in the Third Schedule, in Table-II, in column (1), against serial number 2, in column (2),-
(a) the clause (i) shall be omitted; and
(b) in clause (ii), after the word "or", the word "terrestrial" shall be substituted; and
(11) after Third Schedule, the following new schedule shall be added, namely:í
(11) after Third Schedule, the following new schedule shall be added, namely:í
"FOURTH SCHEDULE"
(Minimum Production)
[See sub-section (5A) of section 3]
1. Minimum production of steel products.-
The minimum production for steel products shall be determined as per criterion specified against each in the Table below:
Table
===================================================================================
S. No. Product Production criteria
===================================================================================
(1) (2) (3)
===================================================================================
1. Steel billets and ingots One metric ton per 700 kwh of
electricity consumed
2. Steel bars and other re-rolled long One metric ton per 110 kwh of
profiles of steel electricity consumed
3. Ship plates 75% of the weight of the vessel
imported for breaking
===================================================================================
Procedure and conditions:-
(i) Both actual and minimum production, and the local supplies shall be declared in the monthly return. In case, the minimum production exceeds actual supplies for the month, the liability to pay duty shall be discharged on the basis of minimum production:
Provided that in case, in a subsequent month, the actual supplies exceed the minimum production, the registered person shall be entitled to get adjustment of excess duty on account of excess of minimum production over actual supplies:
Provided further that in a full year, as per financial year of the company or registered person, or period starting from July to June next year, in other cases, the duty actually paid shall not be less than the liability determined on the basis of minimum production for that year:
Provided also that in case of ship-breaking, the liability against minimum production, or actual supplies, whichever is higher, shall be deposited on monthly basis on proportionate basis depending upon the time required to break the vessel.
(ii) The Board, may notify minimum values for steel products as mentioned in the Table above in exercise of powers under sub-section (5) of section 12.
(iii) The payment of FED on ship plates in aforesaid manner does not absolve ship breakers of any tax liability in respect of items other than ship plates obtained by ship-breaking.
(iv) The melters and re-rollers employing self-generated power shall install a tamperproof meter for measuring their consumption. Such meter shall be duly locked in room with keys in the custody of a nominee of the Commissioner Inland Revenue having jurisdiction. The officers Inland Revenue having jurisdiction shall have full access to such meter.
(v) The minimum production of industrial units employing both distributed power and self-generated power shall be determined on the basis of total electricity consumption.
15 Assets Declaration Act, 2019.- There is hereby enacted Assets Declaration Act, 2019, in the manner as follows:-
AN ACT to provide for voluntary declaration of undisclosed assets, sales and expenditure
WHEREAS there is a reportedly large scale non-declaration of assets, sales and expenditure;
AND WHEREAS it is expedient to make provisions for declaration of such assets, sales and expenditure for the purposes hereinafter appearing;
AND WHEREAS it is expedient to-
(a) allow the non-documented economy's inclusion in the taxation system; and
(b) serve the purpose of economic revival and growth by encouraging a tax compliant economy;
It is hereby enacted as follows:-
1. Short title, extent and commencement.- (1) This Act shall be called the Assets Declaration Act, 2019.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions.-(1) In this Act, unless there is anything repugnant in the subject or context,-
(a) "Board" shall have the same meaning as defined in clause (8) of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001);
(b) "court of law" means a High Court or Supreme Court of Pakistan;
(c) "declarant" means a person making a declaration under section 3;
(d) "holder of public office" means a person as defined in the Voluntary Declaration of Domestic Assets Act, 2018 or his benamidar as defined in the Benami Transactions (Prohibition) Act, 2017 (V of 2017) or their spouses and dependents;
(e) "undisclosed assets" means all domestic and foreign assets of every kind the value of which has been unreported, under-reported or understated and includes benami assets as defined in the Benami Transactions (Prohibition) Act, 2017 (V of 2017);
(f) "undisclosed expenditure" means any unexplained or unaccounted expenditure under the provisions of the Income Tax Ordinance, 2001 (XLIX of 2001) up to the tax year 2018, which has not been declared in the return of income or for which a return of income has not been filed and such expenditure is not accounted for;
(g) "undisclosed sales" means sales or supplies chargeable to sales tax or goods or services subject to federal excise duty under the Sales Tax Act, 1990 or the Federal Excise Act, 2005, respectively, which were not declared or have been under-declared up to the 30th June, 2018.
(2) All other words and expressions used but not defined in this Act shall have the same meaning assigned thereto under the Income Tax Ordinance, 2001 (XLIX of 2001), the Sales Tax Act, 1990, the Federal Excise Act, 2005, the Benami Transactions (Prohibition) Act, 2017(V of 2017) and the rules made thereunder.
3. Declaration of undisclosed assets, sales and expenditure.- (1) Subject to the provisions of this Act, any person may make, on or before the 30th June, 2019, a declaration only in respect of any-
(a) undisclosed assets, held in Pakistan and abroad, acquired up to the 30th June, 2018;
(b) undisclosed sales made up to the 30th June, 2018;
(c) undisclosed expenditure incurred up to the 30thJune, 2018; or
(d) benami assets acquired or held on or before the date of declaration.
Explanation.- It is clarified that the benefit under this Act shall also be available where-
(a) any proceedings have been initiated or are pending or where any income has been assessed under the Income Tax Ordinance, 2001 (XLIX of 2001), which are relatable to undisclosed assets or expenditure except where the matter has attained finality; and
(b) any proceedings have been initiated or are pending or have been adjudicated under the Sales Tax Act, 1990, or the Federal Excise Act, 2005, which are relatable to any undisclosed sales or supplies except where the matter has attained finality.
4. Charge of tax and default surcharge.- (1) The undisclosed assets shall be chargeable to tax and default surcharge at the value mentioned in section 5 and at the rates specified in the Schedule to this Act.
(2) The undisclosed sales and expenditure shall be chargeable to tax and default surcharge at the rates specified in the Schedule to this Act.
5. Value of assets.-Value of assets,-
(a) in case of domestic immovable properties shall be the cost of acquisition but shall not be less than-
(i) 150% of the FBR value notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001); or
(ii) 150% of the DC value, where FBR value has not been notified or the FBR value is less than the DC value; or
(iii) 150% of FBR value notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001) for land and 150% of DC value for constructed property, where FBR value has not been notified for constructed property.
(b) in case of all other assets, shall be the price which the assets would ordinarily fetch on sale in the open market on the date of declaration but in no case shall be less than the cost of acquisition of the asset:
Provided that in case of foreign assets, the fair market value shall be determined at the exchange rate prevalent on the date of declaration.
Explanation.- It is clarified as follows-
(a) in case any declarant has already filed a declaration in respect of any immovable property under the Income Tax Ordinance, 2001 (XLIX of 2001), or the Voluntary Declaration of Domestic Assets Act, 2018 and wishes to enhance the declared value of the said immovable property, he may file a declaration under this Act in terms of the value mentioned in section 5 and above; and
(b) in case a person has already filed a declaration in respect of any immovable property which is in line with section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001), or the Voluntary Declaration of Domestic Assets Act, 2018 no further proceedings or action shall be initiated against him in view of the provisions of this Act, in particular section 5 thereof.
6. Time for payment of tax.- (1) The due date for payment of tax chargeable under this Act shall be on or before the 30th June, 2019:
Provided that after the due date under this sub-section, the tax shall be paid on or before the 30th June, 2020 along with default surcharge at the rates given in clause (2) of the Schedule to this Act.
(2) The tax in respect of foreign assets or foreign currency held in Pakistan shall be paid in foreign currency according to the procedure prescribed by the State Bank of Pakistan, in the mode and manner provided in section 9.
(3) If a person fails to pay tax and default surcharge according to this section, the declaration made shall be void and shall be deemed to have never been made under this Act.
(4) Notwithstanding the provisions of clause (g) of section 11, in case of outstanding demand at the time of filing of declaration, the declarant may pay the amount of such tax determined by the Officer of Inland Revenue, under the provisions of the Sales Tax Act, 1990 or the Income Tax Ordinance, 2001 (XLIX of 2001), or the Federal Excise Act, 2005, without payment of default surcharge and penalty.
(5) Where a person declares undisclosed sales and in case of undisclosed assets or undisclosed expenditures resulting from such sales, he is also required to declare such assets or such expenditures or both and pay tax at the rates specified in the Schedule to this Act on such assets or expenditures or both in addition to tax on such sales.
(6) Where the declarant has paid tax under this section, no tax shall be payable by the declarant under the Income Tax Ordinance, 2001 (XLIX of 2001), in respect of undisclosed assets and undisclosed expenditures.
(7) Where the declarant has paid tax under this section, no tax shall be payable by the declarant under the Sales Tax Act, 1990 or the Federal Excise Act, 2005 in respect of undisclosed sales.
7. Incorporation in books of account.-(1) Where a declarant has paid tax under section 6 in respect of undisclosed assets, sales and expenditure the declarant shall be entitled to incorporate such assets, sales or expenditure in his return, wealth statement or financial statement irrespective of the fact that the asset, sales or expenditure were relatable to a year which is barred by time for the purpose of revision of return of income or wealth statement, as the case may be.
(2) No allowance, credit or deduction under any law for the time being in force shall be available for assets so incorporated.
8. Conditions for declaration.- The declaration made shall be valid, if-
(a) cash held by the declarant is deposited into a bank account in the manner specified at the time of declaration and is retained in such bank account up to the 30th June, 2019; or
(b) the foreign currency held in Pakistan declared under section 3 is deposited into declarant's own foreign currency bank account at the time of declaration and is retained in such account till the 30th June, 2019; or
(c) the repatriated foreign liquid asset is deposited into declarant's own Pak Rupee account or his foreign currency bank account in Pakistan or is invested into Pakistan Banao Certificates or any foreign currency denominated bonds issued by the Federal Government; or
(d) foreign liquid assets not repatriated to Pakistan shall be deposited in declarant's foreign bank account on or before the 30th June, 2019.
9. Mode and manner of repatriation of assets held outside Pakistan and payment of tax thereon.-The State Bank of Pakistan shall notify the mode and manner of-
(a) repatriation of assets to Pakistan;
(b) deposit of tax in foreign currency through State Bank of Pakistan; and
(c) method of conversion of value of assets held outside Pakistan in Pak Rupees.
10. Tax paid not refundable.- Any amount of tax or default surcharge paid under the provisions of this Act shall not be refundable.
11. Act not to apply to certain persons, assets or proceedings.- The provisions of this Act shall not apply to-
(a) holders of public office;
(b) a public company as defined under clause (47) of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001);
(c) any proceeds or assets that are involved in or derived from the commission of a criminal offence;
(d) gold, precious metals, precious stones or jewelry;
(e) bearer prize bonds;
(f) bearer securities, bearer shares, bearer certificates, bearer bonds or any other bearer assets; or
(g) proceedings pending in any court of law.
12. Declaration not admissible in evidence.- Notwithstanding anything contained in any other law for the time being in force, nothing contained in any declaration made under this Act shall be admissible in evidence against the declarant for the purpose of any proceedings relating to imposition of penalty or adverse action or for the purposes of prosecution under any law.
13. Misrepresentation.- Notwithstanding anything contained in this Act, where a declaration has been made by misrepresentation or suppression of facts, such declaration shall be void and shall be deemed to have been never made under this Act.
14. Confidentiality.- (1) Notwithstanding any other law for the time being in force including the Right of Access to Information Act, 2017 (XXXIV) and subsection (3) of section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001), except the provisions of clauses (a) and (g) of sub-section (3) of section 216 of the Income Tax Ordinance, 2001(XLIX of 2001), particulars of any person making a declaration under this Act or any information received in any declaration made under this Act shall be confidential.
15. Power to make rules.- The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this Act including the manner, procedure, payment of tax and conditions under which the declaration under this Act shall be filed.
16. Act to override other laws.- The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.
17. Removal of difficulties.- (1) If any difficulty arises in giving effect to the provisions of this Act, the Federal Government may, by notification in the official Gazette, remove such difficulty as is not inconsistent with the provisions of this Act.
18. Revision of declaration.- Any person who, having filed a declaration, hereinafter referred to as the "original declaration", discovers any omission, mistake,
computational error or wrong statement therein, may file revised declaration within the due date specified in section 3, subject to the condition that the value of asset or tax thereon shall be not less than the value of asset and tax thereon, declared in the original declaration. 19. Repeal.- The Assets Declaration Ordinance, 2019 (III of 2019) is hereby repealed from the date of commencement of this Act.
19. Repeal.- The Assets Declaration Ordinance, 2019 (III of 2019) is hereby repealed from the date of commencement of this Act.
THE SCHEDULE
[see section 4]
Rates of Tax
(1) The rates of tax imposed on undisclosed assets, sales and expenditures shall be as specified in the following Table, namely: -
TABLE
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S. No. Undisclosed assets, sales or expenditure Rate of tax
=====================================================================
(1) (2) (3)
=====================================================================
1. Domestic immovable properties 1.5%
2. Foreign liquid assets not repatriated 6%
3. Unexplained expenditure 4%
4. Undisclosed Sales 2%
5. All other assets 4%
=====================================================================
Rates of Default Surcharge
(2) The amount of tax under clause (1) of the Schedule shall be increased by a default surcharge, by amount as specified in column (3) of the following Table, namely:-
TABLE
=================================================================================
S. No. Time of payment of tax Rate of default
surcharge
=================================================================================
(1) (2) (3)
=================================================================================
1. If the tax is paid after the 30th June, 2019 and 10% of the tax
on or before the 30th September, 2019 amount
2. If the tax is paid after the 30th September, 20% of the tax
2019 and on or before the 31st December, amount
2019
3. If the tax is paid after the 31st December, 2019 30% of the tax
and on or before the 31st March, 2020 amount
4. If the tax is paid after the 31st March, 2020 40% of the tax
and on or before the 30th June, 2020 amount
=================================================================================
16 Amendments in the Finance Supplementary (Second Amendment) Act, 2019 (III of 2019).- In the Finance Supplementary (Second Amendment) Act, 2019 (III of 2019), in section 6, for the TABLE, the following shall be substituted, namely:-
"TABLE
================================================================
S.No. Mobile Phones having C&F Rate of levy per set in
Value (US Dollars) Pak Rupees
================================================================
(1) (2) (3)
================================================================
1 Up to 30 Nil
2 Above 30 and up to 100 Nil
3 Above 100 and up to 200 400
4 Above 200 and up to 350 1200
5 Above 350 and up to 500 2800
6 Above 500 5600".
================================================================
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