The Sindh government has announced to raise Special Development and Maintenance of Infrastructure Cess on imports by 0.3 percent, while 0.1 percent stamp duty on electric transfer of shares has been abolished.
Presenting budget in Sindh Assembly, Chief Minister Qaim Ali Shah said that Finance Act 2006 included electronic document to be treated as instruments under Stamp Act and under this the Central Depository Committee (CDC) was to receive stamp duty at the rate of 0.1 percent on the par value of each electronically transferred share.
However, the management of Karachi Stock Exchange had reservations on this levy, and in order to encourage further development of capital market, the government of Sindh had decided to remove this stamp duty of 0.1 percent enacted through Finance Act 2006 on electronic share transfer through CDC, he added.
He said that this step has been taken to encourage local and foreign portfolio investment in the Karachi stock market.
He said that the Special Development and Maintenance Infrastructure Cess was levied under Section 9 of the Sindh Finance Act 1994 for the purpose of meeting the cost of wear and tear on the infrastructure due to heavy traffic of goods entering the province by air or sea and for providing security.
This Cess is being charged at the rate of 0.5 percent of C& F value on import. However presently it has decided to raise it by 0.3 on various slabs of imports to facilities additional funds to the government for meeting the cost and maintenance of infrastructure.
After the current upsurge the Cess would be charge 0.8 percent on all imports, instead 0.5 percent presently. As per new schedule infrastructure Cess would be charged 0.80 percent of total value of imported goods up to 1250 kilogram as assessed by the custom authorities plus one paisa per kilometer.
Infrastructure Cess would be charged 0.81 percent of total value of goods exceeding 1250 kilogram to 2030 kilogram as assessed by the Custom authorities plus one paisa per kilometre.
Infrastructure Cess would be charged 0.82 percent of total value of goods exceeding 2030 to 4060 kilogram as assessed by the authorities plus one paisa per kilometre. Imports exceeding 4060 but not over 8120 kilogram would be charged 0.83 percent of total value of goods as assessed by the Custom authorities plus one paisa per kilometre.
Infrastructure Cess would be charged 0.84 percent on total value of goods over 8120 to 16000 kilogram as assessed by the Custom authorities plus one paisa per kilometre. Further, 0.85 percent Cess would be charge of total value of goods over 16000 kilogram as assessed by the Custom authorities plus one paisa per kilometre. As per finance bill the Cess on gold shall be charged at the rate of 0.125 of total value assessed by the custom authorities.