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Business & Finance Print 2024-06-13

NOTES ON CLAUSES

CUSTOMS ACT, 1969 (IV OF 1969) Clause 3 (1) (a) Seeks to add new clause in ...
Published June 13, 2024
**CUSTOMS                     ACT, 1969 (IV OF 1969)**
Clause 3 (1) (a)            Seeks to add new clause in section 2 of the
                            Customs Act, 1969 to define "Nuclear Material".
Clause 3 (1) (b)            Seeks to add new clause in section 2 of the Customs Act, 1969
                            to define "Radioactive Material".
Clause 3 (2)                Seeks to insert a new section 3CCD in the Customs
                            Act, 1969
                            to establish Directorate General of National
                            Targeting Centre.
Clause 3 (3)                Seeks to insert a new section 3CCE in the Customs
                            Act, 1969 to establish Directorate General of Trade
                            Based Money Laundering.
Clause 3 (4)                Seeks to substitute sub-section (1) of section 5 to align
                            Customs Act, 1969 with section 8 of FBR Act, 2007.
Clause 3 (5)                Seeks to amend section 6 of the Customs Act, 1969
                            in order to empower the officers of National
                            Command Authority and Pakistan Nuclear
                            Regulatory Authority operating in National
                            Nuclear Detection Architecture to implement and enforce
                            Customs Act.
Clause 3 (6)                Seeks to amend section 7 of the Customs Act, 1969
                            to include Intelligence Bureau, in the list of departments
                            which are mandated to assist Customs whenever requested.
Clause 3 (7)                Seeks to amend section 17 to assign the power to
                            extend the statutory period of detention of goods,
                            to Additional Collector or Additional Director for
                            smooth functioning.
Clause 3 (8)                Seeks to amend sub-section (5) of section 19, to give
                            continuity to the notifications issued under section 19
                            during the financial year.
Clause 3 (9) (a)            Seeks to amend third proviso of sub-section (1) of
                            section 81, to insert Publication Valuation Ruling (PVR)
                            in addition to Valuation Ruling (VR), where no
                            provisional determination of value shall be allowed.
Clause 3 (9) (b)            Seeks to amend third proviso of sub-section (1) of
                            section 81, to insert Publication Valuation Ruling (PVR)
                            in addition to Valuation Ruling (VR), where no
                            provisional determination of value shall be allowed, even
                            if revision is pending under section 25D.
Clause 3 (10) (a)           Seeks to insert two new penal clauses (v) & (vi) in
                            S.No.8 of the Table of section 156 (1), to take cognizance
                            of offences related to nuclear and radioactive material.
Clause 3 (10) (b)           Seeks to amend S.No.9 of the Table of section 156 (1) to
                            rationalize the pitch of penalty for the importers seeking
                            clearance of declared confiscated goods against payment of
                            redemption fine.
Clause 3 (10) (c)           Seeks to amend S.No.83 of the Table of section 156 (1) to
                            enhance the penalty from Rs.2,000 to Rs.50,000 in case of
                            failure to deposit seized goods in the nearest custom house
                            within the stipulated time limit for disposal.
Clause 3 (10) (d)           Seeks to amend S.No.85 of the Table of section 156 (1) to
                            enhance penalty from twenty-five thousand rupees to
                            not less than one hundred thousand rupees, on a
                            person assaulting customs officers/officials.
Clause 3 (10) (e)           Seeks to add new penal clause in S.No.89 of the Table of
                            section 156 (1) to deter the possibility of illegal removal and
                            pilferage of smuggled goods.
Clause 3 (10) (f) (i)       Seeks to amend S.No.90 of the Table of section 156 (1), to
                            rationalize the pitch of penalty for the importers seeking
                            clearance of declared confiscated goods against payment of
                            redemption fine.
Clause 3 (10) (f) (ii)      Seeks to add new penal clause in S.No.90 of the Table of
                            section 156 (1), to deter the possibility of illegal
                            removal and pilferage of goods other than smuggled goods.
Clause 3 (11)               Seeks to substitute section 194, to accelerate the
                            process and enhance efficiency of Customs
                            Appellate Tribunals for disposal of pending cases.
Clause 3 (12)               Seeks to substitute section 194A, to accelerate the process
                            and enhance efficiency of Customs Appellate Tribunals for
                            disposal of pending cases.
Clause 3 (13)               Seeks to substitute section 194B, to accelerate the process
                            and enhance efficiency of Customs Appellate Tribunals for
                            disposal of pending cases.
Clause 3 (14)               Seeks to omit section 194C, for being superfluous in
                            view of proposed changes in section 194, 194A and 194B.
Clause 3 (15)               Seeks to substitute section 195C, to make the ADRC
                            system more effective forum for settlement of
                            disputes pending at appellate fora.
Clause 3 (16)               Seeks to substitute section 196, to make the system more
                            efficient by accelerating the disposal of pending cases
                            at the High Courts.
Clause 3 (17) (i)           Seeks to amend First Schedule to create new PCT code
                            for rice flour.
Clause 3 (17) (ii)          Seeks to amend First Schedule to rationalize customs
                            duty on high speed diesel (HSD) and LNG
Clause 3 (17) (iii)         Seeks to amend First Schedule to correct the description of
                            PCT code 2930.9091.
Clause 3 (17) (iv)          Seeks to amend First Schedule to create new PCT code for
                            Polyol blended with HCFC141b or HCFC-142b.
Clause 3 (17) (v)           Seeks to amend First Schedule to increase customs duty on
                            containers for aerosol products.
Clause 3 (17) (vi) (a)      Seeks to amend First Schedule to exempt customs duty on
                            parts of submersible pumps
Clause 3 (17) (vi) (b)      Seeks to amend First Schedule to the to create new
                            PCT code for Valves used in tyre tubes
Clause 3 (17) (vii)         Seeks to amend First Schedule to the to create new
                            PCT code for solar cables
Clause 3 (17) (viii) (a)    Seeks to amend First Schedule to the to create new
                            PCT code for Night vision goggles
Clause 3 (17) (viii) (b)    Seeks to amend First Schedule to the Customs Act to create
                            new PCT code for Blood collection tubes
Clause 3 (17) (ix) (a)      Seeks to amend PCT code 9908 of First Schedule for
                            substituting the words "Federal Government" with the words
                            Minister Incharge to ensure donations and gifts are granted
                            exemption without the need to seek approval of the Cabinet,
                            with imposition of certain conditions to avoid misuse.
Clause 3 (17) (ix) (b)      Seeks to amend PCT code 9917 of First Schedule to
                            streamline the exemptions and extending the scope of import
                            of ship bunker oil to operating companies of the concession
                            holders and their contractors and sub-contractors.
Clause 3 (17) (ix) (c) (i)  Seeks to amend PCT code 9919 of First Schedule to delegate
                            power to extend time-limit for re-export, further
                            six months, to Chief Collector of Customs to avoid
                            operational delay and ease of doing business.
Clause 3 (17) (ix) (c) (iiii)Seeks to amend PCT code 9921 of First Schedule to insert
                            provision allowing duty paid containers used for
                            transportation of export cargo by the exporters, without
                            payment of duty and taxes.
Clause 3 (17) (ix) (d)      Seeks to delete PCT code 9932 of First Schedule to avoid the
                            misuse of temporarily imported goods and evasion of
                            duty and taxes
Clause 3 (18) (A) (i)       Seeks to amend in serial 1 (k) of Part-I of Fifth Schedule to
                            expend scope of exemption of customs duties on import
                            of fish or shrimp farming and seafood processing
                            machinery and equipment.
Clause 3 (18) (A) (ii)      Seeks to amend serial 21 of Part-I of Fifth Schedule
                            to exempt customs duties on import of machinery,
                            equipment and inputs for manufacturing of solar
                            panels, inverters and batteries etc.
Clause 3 (18) (A) (iii)     Seeks to amend serial 23 of Part-I of Fifth Schedule to
                            rationalize duty structure on bare MCPCB and Stuffed
                            MCPCB.
Clause 3 (18) (B)           Seeks to add new serial 41 in Table-C of Part-II of Fifth
                            Schedule to exempt from customs duties "Bovine
                            Lipid Extract Surfactant"
Clause 3 (18) (C) (i)
& (ii)                      Seeks to amend preamble of Part-III of Fifth Schedule
                            to make corrections in the preamble.
Clause 3 (18) (C) (iii)     (aSeeks to amend Part-III of Fifth Schedule to exempt customs
                            duties on import of live-stock for research purposes.
Clause 3 (18) (C) (iii)     (bSeeks to delete Sr. Nos. 4, 6, 11,12,13 and 14 of Part-III of
                            Fifth Schedule to withdraw concession of customs duties on
                            import of fresh and dry fruits and rationalize tariff
                            structure on import of wheat and sugar.
Clause 3 (18) (C) (iii)     (cSeeks to amend serial 116 of Part-III of Fifth Schedule to
                            review the exemption of inputs for home appliances.
Clause 3 (18) (D)           Seeks to amend Part-V (A) of Fifth Schedule to withdraw
                            concession on import of electric vehicles of value exceeding
                            US$ 50,000.
Clause 3 (18) (E)           Seeks to amend Part-VI of Fifth Schedule to streamline the
                            conditions regarding imports of Aviation related goods.
Clause 3 (18) (F) (i)       Seeks to amend Table-A, Part-VII of Fifth Schedule
                            to exempt customs duties on import of Live (baby/
                            brood stock) fish and shrimp/prawns for breeding and
                            production in commercial farms and hatcheries.
Clause 3 (18) (F) (ii)      Seeks to delete Sr. Nos. 11 and 13 of Table-B of Part-VII of
                            Fifth Schedule to the Customs Act to rationalize tariff
                            structure on import of HSD and LNG
SALES                       TAX ACT, 1990
Clause 5 (1) (a)            Seeks to substitute clause (3) of section 2
Clause 5 (1) (b)            Seeks to substitute clause (4) of section 2
Clause 5 (1) (c)            Seeks to substitute
Clause 5 (1) (d)            Seeks to insert new clause (15A) after clause (15)
                            of section 2
Clause 5 (1) (e)            Seeks to substitute clause (37) of section 2
Clause 5 (1) (f)            Seeks to add the expression "or the time when any
                            payment is
                            received by the supplier in respect of that supply,
                            whichever is earlier" after the word "supply" occurring at
                            the end, in sub-clause (a) of clause (44) of section 2
Clause 5 (1) (g) (i)        Seeks to substitute the word "federal" the word "central"
                            in sub-clause (d) of clause (46) of section 2
Clause 5 (1) (g) (ii)       Seeks to insert the expression ", including those as
                            specified in the Third Schedule," after the word
                            goods, occurring for the first time, in the first proviso,
                            after sub-clause (j), in clause (46) of section 2
Clause 5 (2)                Seeks to omit sub-section (11) of section 3
Clause 5 (3)                Seeks to omit section 11
Clause 5 (4)                Seeks to substitute section 11B
Clause 5 (5)                Seeks to insert new sections 11D, 11E, 11F and 11G after
                            section 11C
Clause 5 (6) (a)            Seeks to substitute the words "issue an order of blacklisting"
                            for the word "blacklist" in sub-section (2) of section 21
Clause 5 (6) (b)            Seeks to add new sub-section (5) after sub-section (4) of
                            section 21
Clause 5 (7)                Seeks to substitute sub-section (3) of section 23
Clause 5 (8)                Seeks to substitute section 25
Clause 5 (9)                Seeks to insert new section 25AB after section 25AA
Clause 5 (10)               Seeks to insert new sub-section (2A) after omitted
                            sub-section (2) of section 26
Clause 5 (11) (a)           Seeks to insert the expression " (1)" after the marginal
                            heading in section 33
Clause 5 (11) (b) (i)       Seeks to substitute column (2) against S. No. 11 of
                            section 33
Clause 5 (11) (b) (ii)      Seeks to substitute column (2) against S. No. 13 of
                            section 33
Clause 5 (11) (c) (i)       Seeks to insert the words "as may be prescribed" after
                            the word "confiscation" in clause (i), in column (2)
                            against S. No. 23 of section 33
Clause 5 (11) (c) (ii)      Seeks to add the words "shall be liable to be sealed by an
                            officer of Inland Revenue in the manner prescribed" for the
                            words "be sealed for a period not exceeding fifteen days" in
                            clause (iii) in column (2) against S. No. 23 of section 33
Clause 5 (11) (d)           Seeks to add words "shall be liable to be sealed by an officer
                            of Inland Revenue in the manner prescribed" for the words
                            shall be sealed till such time he integrates his business in the
    m
                            (2) against S. No. 25 of section 33
Clause 5 (11) (e) (i)       Seeks to insert the expression "or sub-section (4) of section
                            40C" after the expression "section 3," in column (1)
                            against S. No. 25A of section 33
Clause 5 (11) (e) (ii)      Seeks to add the expression "and sub-section (4) of section
                            40C" after the expression "section 3," in column (3)
                            against S. No. 25A of section 33
Clause 5 (11) (f)           Seeks to add new S. No. 25AA after S. No. 25A of
                            section 33
Clause 5 (11) (g)           Seeks to insert the words "as may be prescribed"
                            occurring for
                            the first time, after the word "confiscation" in column
                            (3) against S. No. 26 of section 33
Clause 5 (11) (h)           Seeks to insert the words "as may be prescribed"
                            occurring for the first time, after the word "confiscation"
                            in column (3) against S. No. 27 of section 33
Clause 5 (11) (i)           Seeks to add new sub-section (2) after the TABLE in
                            section 33
Clause 5 (12)               Seeks to substitute the words "KIBOR plus three" for
                            the word "twelve" in clause (a) of sub-section (1) of
                            section 34
Clause 5 (13)               Seeks to add new sub-sections (4) and (5) after
                            sub-section (3) in section 40C
Clause 5 (14)               Seeks to substitute the word "June" for the
                            word "September" in sub-section (4) of section 43A
                            with effect from 16th day of June, 2024
Clause 5 (15)               Seeks to insert the words "of tax" after the word
                            assessment in sub-section (1) of section 45B
Clause 5 (16)               Seeks to insert the expression ", excluding the order of
                            blacklisting under sub-section (2) of section 21," after
                            the word "order" in sub-section (1) of section 46
Clause 5 (17)               Seeks to insert new section 47AB after section 47A
Clause 5 (18)               Seeks to insert the words "in aggregate" after the
                            word "rupees" in sub-section (1) of section 73
Clause 5 (19)               Seeks to add new serial number 51 and entries relating
                            thereto in columns (2) and (3) after serial number 50 in
                            column (1) in the Third Schedule
Clause 5 (20)               Seeks to omit serial numbers 12, 16, 17 and 21 and entries
                            relating thereto in column (2), in column (1) of the Fifth
                            Schedule
Clause 5 (21) (A) (i)       Seeks to omit serial numbers 13,15, 32, 86, 87, 88, 89, 90,
                            96, 97, 98, 112, 120,151,152, 166, 169, 170 and 174
                            and entries relating thereto in columns (2) and (3), in
                            column, in Table-1 of the Sixth Schedule
Clause 5 (21) (A) (ii)      Seeks to omit the words "imported by or" in column
                            (2) against serial number 165 of the Sixth Schedule
Clause 5 (21) (A) (iii)     Seeks to add new serial numbers 175 and 176 and entries
                            relating thereto in columns (2) and (3) after omitted serial
                            number 174, in column (1), in Table-1 of the Sixth Schedule
Clause 5 (21) (B) (i)       Seeks to omit serial numbers 7 and 21 and entries relating
                            thereto in columns (2) and (3), in column (1), in Table-II
                            of the Sixth Schedule
Clause 5 (21) (B) (ii)      Seeks to add new serial numbers 56 and 57 and entries
                            relating thereto in columns (2) and (3), after serial number 55
                            in column (1), in Table-II of the Sixth Schedule
Clause 5 (22) (i)           Seeks to omit serial numbers 58, 66 and 73 and entries
                            relating thereto in columns (2), (3), (4) and (5), in column
                            (1) in Table-I in the Eighth Schedule
Clause 5 (22) (ii)          Seeks to substitute serial number 77, in column (1) in Table-I
                            in the Eighth Schedule
Clause 5 (22) (iii)         Seeks to omit "and medicaments as are classifiable under
                            chapter 30 of the First Schedule to the Customs Act, 1969
                            (IV of 1969) except the following, even if medicated or
                            medicinal in nature, namely:-(a) filled infusion solution
                            bags imported with or without infusion given sets; (b)
                            scrubs, detergents and washing preparations; (c) soft soap or
                            no soap; (d) adhesive
                            plaster; (e) surgical tapes; (f) liquid paraffin; (g) disinfectants,
                            and (h) cosmetics and toilet preparations. This substitution
                            shall be deemed to have been made from the 1st day of July,
                            2022" after the expression " (XXXI of 1976)", in column (2)
                            against serial number 81 in column (1) in Table-I in
                            the Eighth Schedule
Clause 5 (22) (iv)          Seeks to add new serial numbers 84, 85, 86, 87, 88, 89,
                            90 and 91 and entries relating thereto in columns (2), (3),
                            (4) and (5), after serial number 83 in column (1) in Table-I
                            in the Eighth Schedule
Clause 5 (23) (a)           Seeks to substitute Table-II of Ninth Schedule
Clause 5 (23) (b)           Seeks to omit clauses (iii), (iv) and (v) under the heading
                            LIABILITY, PROCEDURE AND CONDITIONS
                            after Table-II of Ninth Schedule
Clause 5 (24) (a)           Seeks to substitute the expression "80%" for the expression
                            75% in column (4) against serial number 7 in column
                            (1), in the TABLE, in the Eleventh Schedule
Clause 5 (24) (b)           Seeks to add new serial numbers 9, 10, 11, 12 and 13 and
                            entries relating thereto in columns (2), (3) and (4) after serial
                            number 8 in column (1), in the TABLE, in the Eleventh
                            Schedule
Clause 5 (24) (c)           Seeks to substitute clause (viii) after the TABLE in
                            the Eleventh Schedule
Clause 5 (25)               Seeks to add the expression " (PCT headings 8517.1419,
                            8517.1430 and 8517.1390)" after the word "phones", in sub-
                            clause (iv), in clause (2), under the heading Procedure and
                            Conditions, after the Table, in the Twelfth Schedule
INCOME                      TAX ORDINANCE, XLIX OF 2001
Clause 6 (1)                Seeks to amend the definition of the Federal Board of
                            Revenue to include a Member of the Board to whom powers
                            of the Federal Board of Revenue have been delegated
Clause 6 (2)                Seeks to provide that a person acquiring shares shall collect
                            tax at the time of payment of consideration for shares
                            or at the time of registration of shares, whichever is earlier.
Clause 6 (3)                Seeks to provide that loss for Pakistan International Airlines,
                            from 01 January 2017 can be carried forward to ten years as
                            against earlier availability of carry forward for six years.
Clause 6 (4)                Seeks to explain that hundred percent tax credit for persons
                            engaged in coal mining projects in Sindh and supplying coal
                            to power generation projects is available only to their income
                            derived from coal mining operations.
Clause 6 (5)                Seeks to provide the condition of filing of audited
                            accounts for an association of persons having turnover
                            of three hundred million rupees or more to file its
                            audited accounts otherwise the income of member of
                            the association of persons shall not be exempt from tax.
Clause 6 (6)                Seeks to provide a new category of persons who have filed
                            return but not within due date
Clause 6 (7)                Seeks to provide that where a person is paying royalty
                            for use of brand to its associate and also claiming
                            advertisement expense, twenty five percent of the
                            advertisement expense shall be allocated to the associate.
Clause 6 (8)                Seeks to bar exit from Pakistan for persons who do not file
                            their return even after issuance of notice for filing of
                            return after their names have been mentioned in the
                            income tax general order, but this condition shall not
                            apply for persons proceeding on Hajj, umrah, minors,
                            students, overseas Pakistanis holding NICOP and such
                            other class of persons notified by the Board.
Clause 6 (9)                Seeks to provide that assets in wealth statement includes
                            foreign assets
Clause 6 (10)               Seeks to allow best judgment assessment for discontinued
                            business.
Clause 6 (11)               Seeks to remove a technical anomaly regarding order to be
                            revised by the Commissioner.
Clause 6 (12)               Seeks to provide that for filing of appeal before the
                            Commissioner (Appeals) in cases involving value of
                            assessment greater than twenty million, the term 'value' of
                            assessment' means net increase in tax liability as a result of
                            order, and that the date of transfer of cases which was 16th
                            June 2024 shall now be 16th September 2024 but the same
                            shall be deemed to have been transferred on 16th June 2024.
Clause 6 (13)               Seeks to determine pecuniary limit for Commissioner
                            Appeals.
Clause 6 (14)               Seeks to correct a technical anomaly so that appeals against
                            the order of the Commissioner Appeals are not filed in the
                            Appellate Tribunal and are directly filed in High Court.
Clause 6 (15)               Seeks to provide for adoption of turnover equal to 120% of
                            turnover in advance tax cases where the turnover is
                            not known and provides for filing of certain documents
                            in case estimates for advance tax are filed. Non-filing
                            of required documents may lead to rejection of estimate.
Clause 6 (16)               Seeks to provide the Board to determine minimum value in
                            certain cases on which income tax will be collected
                            on import stage.
Clause 6 (17)               Seeks to change the facility of exemption certificate
                            to reduced rate c ertificate on s upply of goods to permanent
                            establishments of non-residents
Clause 6 (18)               Seeks to change the facility of exemption certificate
                            to reduced rate certificate on supply of goods for residents
Clause 6 (19)               Seeks to change the one percent tax collected on
                            imports from final tax to minimum tax
Clause 6 (20)               Seeks to change the facility of exemption certificate against
                            certain withholding provisions to reduced rate certificate
Clause 6 (21)               Seeks to make a technical amendment consequent to change
                            of tax on exports from final to minimum tax
Clause 6 (22)               Seeks to make a technical amendment consequent to change
                            of tax on exports from final to minimum tax
Clause 6 (23) (a)           Seeks to provide penalty for persons who have discontinued
                            their business and do not file their return in response
                            to notice
Clause 6 (23) (b)           Seeks to provide penalty of sealing of shop traders and
                            shopkeepers who are required to but fail to register under the
                            Tajir Dost Scheme or similar schemes
Clause 6 (23) (c)           Seeks to provide penalty of one hundred million rupees for
                            implementing agencies who fail to block sims or disconnect
                            utilities or allow exit from Pakistan of/for non-filers for first
                            default and two hundred million for subsequent default
Clause 6 (23) (d)           Seeks to provide penalty of 50% of the tax involved for
                            persons who fail to collect tax from the acquirer of shares
                            at the time of payment or at the time of transfer of
                            shares, whichever is earlier
Clause 6 (23) (e)           Seeks to provide penalty of rupees five hundred thousand or
                            ten percent of the tax chargeable for persons who leave the
                            relevant particulars of return blank or who file
                            blank accounts or file incomplete or irrelevant particulars
                            so as to understate the tax liability
Clause 6 (24)               Seeks prosecution for of person fails to furnish return for
                            discontinued business in response to notice.
Clause 6 (25)               Seeks to provide prosecution of persons who leave the
                            relevant particulars of return blank or who file
                            blank accounts or file incomplete or irrelevant particulars
                            so as to understate
                            the tax liability which upon conviction is punishable on
                            conviction with a fine or with imprisonment for one year or
                            both. Also seeks to provide prosecution for failure to get
                            registered for Tajar Dost scheme with punishment of
                            imprisonment which may extent to six months, or with
                            fine, or both.
Clause 6 (26)               Seeks to increase the rate of default surcharge for late
                            payment to KIBOR + 3%
Clause 6 (27)               Seeks to enable sharing of data with National Database
                            Registration Authority to process and analyze data for
                            broadening of tax base
Clause 6 (28)               Seeks to include all the sectors of business for collection of
                            advance tax from distributors, dealers and wholesalers at the
                            time of sale to such persons by manufacturers or commercial
                            importers
Clause 6 (29)               Seeks to include all the sectors of business for collection of
                            advance tax from retailers at the time of sale to such persons
                            by distributors, dealers, wholesalers, manufacturers and
                            commercial importers
Clause 6 (30)               Seeks to provide saving for limitation in filing appeals
                            for cases decided by the Appellate Authorities prior to
                            the Tax Laws (Amendment) Act, 2024
Clause 6 (31) (A) (1) (a)   Seeks to provide new rates for tax for business
                            individuals and associations of persons
Clause 6 (31) (A) (1) (b)   Seeks to provide new rates of tax for salaried individuals
Clause 6 (31) (A) (2)       Seeks to enhance tax rate on dividend received from a
                            mutual fund deriving 50% or more of its income from
                            profit on debt to 25%.
Clause 6 (31) (A) (3)       Seeks to fix the tax rate for capital gain on securities to 15%
                            for securities acquired on or after 01 July, 2024
                            irrespective of the holding period for filers, and for
                            non-filers the tax will be
                            collected at normal rates with minimum rate of 15% and rate
                            of capital gains received from a mutual fund or collective
                            investment scheme or REIT scheme has been
                            enhanced from 10% to 15%.
Clause 6 (31) (A) (4)       Seeks to fix the tax rate for capital gain on immovable
                            property to 15% for property acquired on or after 01
                            July, 2024 irrespective of the holding period for filers,
                            and for non-filers the tax will be collected at normal
                            rates with minimum rate of 15%
Clause 6 (31) (B) (1)       Seeks to enhance tax rate on dividend received from a
                            mutual fund deriving 50% or more of its income from
                            profit on debt to 25%.
Clause 6 (31) (B) (2)       Seeks to provide withholding tax rate for toll
                            manufacturing for companies and others.
Clause 6 (31) (C) (1)       Seeks to enhance withholding tax rate from 15% to 75% on
                            use of mobile phones for persons whose names are
                            appearing in the income tax general order for non-filing
                            of return even after issuance of notice.
Clause 6 (31) (C) (2)       Seeks to provide rates of collection of tax on registration of
                            motor vehicle in proportion to the value of the vehicle.
Clause 6 (31) (C) (3)       Seeks to provide progressive withholding tax rates for
                            filers on sale of property ranging from 3% with value
                            of property does not exceed Rs.50 million, 3.5% where
                            the value of property exceeds 50 million but does not
                            exceed 100 million and 4% where the value of
                            property exceed 4%.
Clause 6 (31) (C) (4)       Seeks to provide progressive withholding tax rates for
                            filers on purchase of property ranging from 3% with value
                            of property does not exceed Rs.50 million, 3.5% where
                            the value of property exceeds 50 million but does not
                            exceed 100 million and 4% where the value of property
                            exceed 4%.
Clause 6 (32) (A) (i)       Seeks to withdraw exemption for income from subsidy
                            received from the Federal Government
Clause 6 (32) (A) (ii)      Seeks to extend exemption to former FATA and
                            PATA region up to 30th June, 2025
Clause 6 (32) (B)           Seeks to increase the reduced rate for distributors of
                            cigarettes from 1% to 2.5%
Clause 6 (32) (C)           Seeks to withdraw tax credit to full time teachers and
                            researchers
Clause 6 (32) (D)           Seeks to extend exemption to former FATA and
                            PATA region up to 30th June, 2025
Clause 6 (33) (a)           Seeks to explain the existing tax regime for banks so that the
                            existing tax treatment may continue with no new
                            provisions to be allowed.
Clause 6 (33) (b)           Seeks to explain a term regarding applicability of super
                            tax for banking companies.
Clause 6 (34) (a)           Seeks to provide enhanced withholding tax rates for
                            non-filers on purchase of immovable property on the basis
                            of value of immovable property with 12% tax on
                            immovable property with value up to 50 million, 16%
                            rate for immovable property having value between 50 to
                            100 million and 20% for value above 100
                            million. Similarly, tax rates for non-filers for profit on
                            debt has been increased from 30% to 35%, withholding
                            tax rate on sale of immovable property has been increased
                            to 10% for non-filers. Withholding tax rates for non-filer
                            distributors, wholesalers or dealers has been increased to
                            2% and for non-filer retailers it is 2.5%
Clause 6 (34) (b)           Advance tax on sale and purchase of immovable property by
                            persons who are late filers i.e., who do not file their return by
                            the due date has been provided at 6% where the value of
                            property is up to Rs.50 million, 7% where the value of
                            property is up to 100 million and 8% where the value
                            of property exceeds Rs.100 million.
Clause 6 (34) (c)           Seeks to make a technical amendment in the 10th
                            Schedule to Income Tax Ordinance, 2001 as rates for
                            non-filers on disposal of securities has now been provided
                            in the first schedule to the Income Tax Ordinance, 2001.
FEDERAL                     EXCISE ACT, 2005
Clause 7 (1)                Seeks to substitute the words "KIBOR plus three" for
                            the word "twelve" in section 8
Clause 7 (2) (a) (i)        Seeks to omit the word "and" at the end in clause (d) of sub-
                            section (3) of section 19
Clause 7 (2) (a) (ii)       Seeks to add the word "and" after the expression
                            under and thereafter seeks to add new clause (f)
                            after clause (e) of sub-section (3) of section 19
Clause 7 (2) (b)            Seeks to insert new sub-section (10A) after sub-section
                            (10) in section 19
Clause 7 (3)                Seeks to insert the words "of tax" after the word
                            assessment in sub-section (1) of section 33
Clause 7 (4)                Seeks to substitute the word "June" for the
                            word "September" in sub-section (4) of section 33A
                            with effect from 16th day of June, 2024
Clause 7 (5)                Seeks to insert new section 34AB after section 34A
Clause 7 (6) (i)            Seeks to insert new serial number 7a and entries relating
                            thereto in columns (2), (3) and (4) after serial number 7 in
                            column (1) in Table-I of the First Schedule
Clause 7 (6) (ii)           Seeks to add the words "or sixty five percent of retail price
                            whichever is higher" after the words "per kg" in column
                            (4) of serial number 8a in column (1) in Table-I of the
                            First Schedule
Clause 7 (6) (iii)          Seeks to insert new serial number 8d and entries relating
                            thereto in columns (2), (3) and (4) after serial number 8c in
                            column (1) in Table-I of the First Schedule
Clause 7 (6) (iv)           Seeks to substitute the words "twelve thousand five
                            hundred" for the words "nine thousand" in column
                            (2) against serial number 9 in column (1) in Table-I of
                            the First Schedule
Clause 7 (6) (v)            Seeks to substitute the words "twelve thousand five
                            hundred" for the words "nine thousand" in column
                            (2) against serial number 10 in column (1) in Table-I of
                            the First Schedule
Clause 7 (6) (vi)           Seeks to substitute the word "three" for the word "two"
                            in column (4) against serial number 13 in column (1)
                            in Table-I of the First Schedule
Clause 7 (6) (vii)          Seeks to substitute the words "eighty thousand" for
                            the words "fifteen hundred" in column (4) against
                            serial number 56 in column (1) in Table-I of the
                            First Schedule
Clause 7 (6) (viii)         Seeks to add new serial numbers 63 and 64 and entries
                            relating thereto in columns (2), (3) and (4) after serial
                            number 62 in column (1) in Table-I of the First Schedule
Clause 7 (7)                Seeks to substitute the expression "Restriction-2-Brand
                            variants at different price points" for the expression
                             (2) Variants at different price points and seeks to
                            add Explanation in the marginal heading after the Table-1
                            of the First Schedule
Clause 7 (8)                Seeks to add new serial number 23 and entries relating
                            thereto in columns (2) and (3) after serial number 22 in
                            column (1) in Table-I in the Third Schedule
Federal                     Board of Revenue Act, 2007
Clause 8 (1)                Seeks to exclude an employee as a person to whom the
                            powers of the Federal Board of Revenue can be delegated.

===================================================================================================

The Statement of estimated Tax Expenditure of the Federal Government as

required under Section 8 of Public Finance Management Act 2019 is appended

at the end of this bill as Annex-A.

====================================================================================================

Copyright Business Recorder, 2024

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