ALTERNATE CORPORATE TAX (ACT): A concept of ACT has been introduced. Under this concept of taxation, which is prevalent in many other jurisdictions including USA and India, the minimum tax liability in case of a company is higher of tax on accounting income or the taxes on income determined under the Ordinance.
=========================================================================================
2014-2015 2013-2014
=========================================================================================
(Revised)
=========================================================================================
Rs in Rs in
Billion % Billion %
=========================================================================================
3,129 2,514
Tax revenue
816 1,083
Non-tax revenue
3,945 3,597
Gross revenue receipts
271 170
Public account receipt - net
4,217 100 3,767 100
Total receipts
Less: Provincial share in Federal taxes (1,720) 41 (1,413) 38
Net revenue receipts 2,497 59 2,354 62
Expenditure
- Current expenditure 3,527 84 3,404 90
- Development expenditure 839 20 859 23
4,366 104 4,263 113
Deficit (1,869) (45) (1,909) (51)
484 636
- Domestic debts non-bank
227 376
- Domestic debts banks
869 714
- Foreign debt
289 183
- Surplus from provinces
1,869 1,909
=========================================================================================
A company in Pakistan is subject to tax at the rate prescribed in the First Schedule to the Ordinance, or the final tax or the minimum tax, as the case may be.
Under the newly inserted section 113C, the ACT, being the tax determined on accounting income has been prescribed at seventeen per cent (17%) of such income.
For the purpose of this section, following terms have been defined as under:
(a) "Accounting Income" means the accounting profit before tax for the tax year, as disclosed in the financial statements or as adjusted under sub-section (7) or sub-section (11) excluding share from the associate recognised under equity method of accounting;
(b) "Alternative Corporate Tax" means the tax at a rate of seventeen per cent of a sum equal to accounting income less the amounts, as specified in sub-section (8), and determined in accordance with provisions of sub-section (7) hereinafter;
(c) "Corporate Tax" means total tax payable by the company, including tax payable on account of minimum tax and final taxes payable, under any of the provisions of this Ordinance but not including those mentioned in sections 8, 161 and 162 and any amount charged or paid on account of default surcharge or penalty and the tax payable under this section.
The provisions of ACT shall not apply on insurance companies, companies engaged in exploration and production of petroleum and banking companies as per Fourth, Fifth and Seventh Schedule to the Ordinance respectively.
In case if the amount of ACT is higher than the corporate tax then the excess so determined shall be adjustable against the normal tax payable for the following years. However, the same cannot be carried for more than 10 years succeeding the tax year in which the excess was first computed. It has been specifically provided that mechanism of adjustment of ACT shall not prejudice the right of carry forward of the normal minimum tax under section 113 of the Ordinance. Tax credit under section 65B shall be allowed against ACT.
The Commissioner Inland Revenue has been empowered to make adjustments in computing the accounting income as per the historical accounting pattern.
This clause requires reconsideration in the light of prevalent accounting framework under Generally Accepted Accounting Principles adopted by the Institute of Chartered Accountants of Pakistan and approved by Securities and Exchange of Pakistan.
RATE OF TAX FOR COMPANIES
The Finance Minister in his Budget Speech whilst presenting the Finance Bill 2013 had stated that the rate of tax for Companies was to be reduced by 1% for each year to bring it down to the level of 30%.
The 'Salient Features' issued alongwith the Budget documents for current year reinforced the aforesaid position and state that the rate of tax for Companies for the tax year 2015 shall be 33%, however, this provision has inadvertently been missed out in the Finance Bill.
BONUS SHARES
Income as defined under section 2(29) of the Income Tax Ordinance, 2001, excludes the amount representing the face value of bonus shares in case of shareholder of a company. It is proposed that this exclusion be removed.
Tax at the rate of five per cent on the value of the 'bonus shares' determined on the basis of day-end price on the first day of closure of books has been proposed to be collected which will be final liability on such income.
The company issuing the bonus shares shall make adequate arrangement for collection of such tax and in case of default; tax shall be collected from the company, without prejudice to any other liability which it may incurs under this Ordinance.
It is proposed that the value of bonus share as referred above shall be taxable as 'income from other sources'.
The validity of the aforesaid concept is expected to be tested in courts and the case laws in the comparative jurisdictions support the view that bonus share do not per se represent income under the Ordinance.
In the Indian jurisdiction, this matter has been tested in appeals and it has been held that bonus shares are not dividend or for that matter income when issued to holders of ordinary and equity shares.
Unlike the Indian Income Tax Act, 1922 (repealed), in Pakistan, in the Income Tax Act, 1922 (repealed) the bonus shares were included in the definition of income under section 2(6C) of the Act. This inclusion was conceived to be the income in the hands of the company distributing the bonus shares.
In 1977 Lahore High Court in a judgement held that the bonus shares were income in the hands of the shareholder. The position was taken into account by way of introduction of section 12(9) of the repealed Ordinance, 1979, whereby bonus shares were considered as income of the company distributing the bonus shares, however by way of clause 108 of Part I of Second Schedule of the Ordinance, such amount was exempted from tax. Consequently, bonus shares were broadly neither taxed as income of the company nor in the hands of the shareholders till Finance Ordinance, 2001.
Through the Finance Ordinance, 2001, the provisions relating to income in the hands of the distributing company were deleted from the Ordinance and the value of bonus share was included in the definition of income in the hands of the shareholders however, by way of amendment introduced by Finance Ordinance, 2002, bonus shares were excluded from the definition of income in the hands of shareholders of the company in consequence to which the amount was neither income for company distributing the bonus share nor in the hands of the shareholders of the company. This position has been retained till to date.
TAXABILITY OF MUTUAL FUNDS
Exemption from Tax
Income of mutual funds is exempt from tax provided ninety per cent of the accounting income as reduced by realised or unrealised capital gains is distributed to unit holders.
Distribution includes dividend as well as bonus shares.
Through the proposed amendment, for the purpose of claiming exemption, bonus shares, units or certificates shall not be considered towards distribution of ninety per cent of income. It consequently means that only cash dividend shall be taken into consideration for computation of 90 per cent limit to claim exemption.
Distribution by way of bonus shares was incorrectly not being considered by tax authorities for allowing exemption to mutual funds in certain cases. This amendment effectively puts to rest the issue being raised in such cases.
The proposed amendment is in line with the existing clause 100 of Part I of the Second Schedule to the Ordinance in respect of modarabas.
TAX ON DIVIDENDS FROM MUTUAL FUNDS
Another major amendment in respect of mutual fund is the segregation of 'stock fund' from other categories of funds. Stock fund has been defined as collective investment scheme or a mutual fund where the investible funds are invested by way of equity shares in companies, to the extent of more than seventy per cent of the investment.
The rate of tax on dividends received from various categories of fund has been prescribed as follows:
=======================================
Money market
Fund, Income
Stock Fund or any
Fund other fund
=======================================
Individual 10% 10%
Company 10% 25%
AOP 10% 10%
=======================================
It has further been provided that in the case of a stock fund where dividend receipts are less than capital gains, the rate of tax deduction for its unit holders shall be twelve and half per cent.
DIVIDEND AND CAPITAL GAINS OF BANKING COMPANIES
Under the Seventh Schedule, income of Banking Companies by way of dividend and gain from sale of listed shares held for more than one year are presently chargeable to tax at the rate of 10% except for the dividends received from its Asset Management Company and money market and income funds which are taxed at 20% and 25% respectively.
It is now proposed that 'net income from dividend' and 'net income from capital gains' on sale of shares held for more than one year would be taxed at 10% and 12.5% respectively. There is no change proposed for the taxation of dividend received from asset Management Company and money market and income funds.
Net income from dividend is now proposed to be computed according to the following formula:
=====================================================================
Total amount of
expenditure as per
Seventh Schedule X Gross amount of
Gross amount of receipt dividend received
including dividend
Net income from capital gains is now proposed
to be computed according to the following
formula:-
Total amount of
expenditure as per
Seventh Schedule X Gross amount of
Gross amount of receipts Capital Gains
including capital gains
=====================================================================
CAPITAL GAIN ON DISPOSAL OF SECURITIES
Extension of holding period for purpose of taxability
Gain on sale of securities was subjected to tax by Finance Act, 2010 in case if such securities were held for less than 12 months. It has now been proposed that gain resulting from sale of securities for period between 12 to 24 months shall also be taxable under the Ordinance and as such exemption is proposed to be available only where the holding period of securities exceeds 24 months.
The rates of tax on sale of securities are as under:
=================================================================
S.No Period Tax Rate
Year of tax
=================================================================
(1) (2) (3) (4)
=================================================================
1. Where holding period of a 2011 10%
security is less than six 2012 10%
months. 2013 10%
2014 10%
2. Where holding period of a 2011 7.5%
security is more than six 2012 8%
months but less than 2013 8%
twelve months. 2014 8%
TAX YEAR 2015
3. Where holding period of a 12.5%
security is less than
twelve months.
4. Where holding period of a 10%
security is twelve months
or more but less than
twenty-four months.
5. Where holding period of a 0%
security is twenty-four
months or more."
=================================================================
In the Finance Act, 2013, the rate of tax for securities sold within six months was proposed to be increased to 17.5% from 10% for tax year 2015 and for securities held for more than 6 months but less than 12 months, the rate of tax was proposed to be 9.5%. The proposed rates for tax year 2015 have been revised as indicated above.
TAXATION OF DEBT SECURITIES
Gain / loss on disposal of debt securities shall be taxable in the manner similar to 'securities' as previously included under section 37A of the Ordinance.
The definition of the term 'securities' has been extended to include 'Debt securities'. 'Debt securities' means:
(a) Corporate Debt Securities such as Term Finance Certificates (TFCs), Sukuk Certificates (Sharia Compliant Bonds), Registered Bonds, Commercial Papers, Participation Term Certificates (PTCs) and all kinds of debt instruments issued by any Pakistani or foreign company or corporation registered in Pakistan; and
(b) Government Debt Securities such as Treasury Bills (T-bills), Federal Investment Bonds (FIBs), Pakistan Investment Bonds (PIBs), Foreign Currency Bonds, Government Papers, Municipal Bonds, Infrastructure Bonds and all kinds of debt instruments issued by Federal Government, Provincial Governments, Local Authorities and other statutory bodies.
TAXATION OF INCOME OF A COMPANY BEING A MEMBER OF AN ASSOCIATION OF PERSONS AOP]
Under section 92 of the Ordinance, an AOP is taxable as a unit and share of a member is exempt from tax in the hands of the member. This provision is applicable for all persons, even if a member is a company incorporated in or outside Pakistan.
Through the proposed amendment, in case a member of AOP is a company or companies then such company or companies shall be taxed separately at the rate applicable to the companies on their respective shares.
The procedure now being proposed to be prescribed is the reinstatement of the concession provided earlier by way of CBR's Circular No 4 of 1964 dated December 11, 1964. The extract of the same is reproduced as under:
"It has been brought to the notice of the Central Board of Revenue that Pakistani Companies entering into a 'Joint venture' arrangement with foreign companies are not quite clear about their liability to Pakistan Income-tax. The position is that in the case of a joint venture, each participant in such venture is liable to tax on its own share of profits and at the rates applicable to its total income. To avoid complications, when a Pakistani company desires to enter into a joint venture arrangement with a reputable and reliable foreign company, such arrangement may, if necessary, be got cleared before hand from the Central Board of Revenue."
As announced by the Finance Minister in the Budget Speech, this amendment has been made to provide the right of reduced rate of tax inter- alia for local and foreign companies being the member of an AOP.
Furthermore, the amendment aims to align the taxation of non-resident companies with treatment given in the respective Agreements for Avoidance of Double Taxation, where applicable.
ENHANCEMENT IN WITHHOLDING TAX RATES
The rates of withholding tax have been enhanced for following transactions:-
(a) Supply of goods by Companies - 3.5% to 4%
(b) Supply of goods by other than companies - 4% to 4.5%
(c) Services rendered by Companies - 6% to 8%
(d) Services rendered by other than companies - 7% (incorrectly referred as 8% in the Bill) to 10%
(e) Execution of contract by Companies 6% to 7%
(f) Execution of contract by other than companies - 6.5% to 7.5%
(g) Export oriented services - 0.5% to 1%
(h) Commission or discount on Petrol Pump Operators - 10% to 12%
(i) Commission or brokerage other than advertising agents - 10% to 12%
There is no change in the mechanism of taxation in respect of aforesaid withholding tax provisions.
FILERS & NON-FILERS OF TAX RETURNS
The persons having NTN will be classified as those being filers or non-filers on the basis of returns filed by them as prescribed by the law. The filer has been defined as the person whose name appears on the active taxpayers' list or who is the holder of taxpayer card.
This amendment is necessitated as a substantial number of NTN holders are not filing returns.
Concessions and benefits for the NTN holders are expected to be restricted to filers.
Rates for collection / withholding tax have generally been prescribed at enhanced rates for non-filers.
ZERO RATE TAXATION FOR CERTAIN PERSONS
Concept of zero rating being tax credit equal to hundred per cent of tax payable including minimum tax has also been proposed for certain non-profit organisations, trusts and welfare institutions.
Previously, such institutions were exempt from tax under the respective clauses of the Second Schedule to the Ordinance. Under the proposed scheme, such persons shall be subject to zero rate of tax if the following conditions are complied with:
(a) return has been filed;
(b) tax required to be deducted or collected has been deducted or collected and paid; and
(c) withholding tax statements for the immediately preceding tax year have been filed.
This process is in practice in various other jurisdictions and considered to be a preferable method of providing concessions, as this process promotes documentation and compliance of the law. This concept does not result in any additional tax incidence for such persons.
Accordingly, the following clauses have been omitted from Part I of the Second Schedule to the Ordinance.
===========================================================
Clause 58(1) any income of a trust or
welfare institution or non-
profit organisation from
donations, voluntary
contributions, subscriptions,
house property, investments in
the securities of the Federal
Government and so much of the
income chargeable under the
head "income from business" as
is expended in Pakistan for the
purposes of carrying out
welfare activities:
Provided that in the case of
income under the head "income
from business", the exemption
in respect of income under the
said head shall not exceed an
amount which bears to the
income, under the said head,
the same proportion as the said
amount bears to the aggregate
of the incomes from the
aforesaid sources of income.
Clause 58(2) a trust administered under a
scheme approved by the
Federal Government in this
behalf and established in
Pakistan exclusively for the
purposes of carrying out such
activities as are for the benefit
and welfare of-
(i) ex-servicemen and
serving personnel,
including civilian
employees of the Armed
Forces, and their
dependents; or
(ii) ex-employees and serving
personnel of the Federal
Government or a
Provincial Government
and their dependents,
where the said trust is
administered by a
committee nominated by
the Federal Government
or, as the case may be, a
Provincial Government;
Clause 58(3) a trust or welfare institution or
non-profit organisation
approved by Chief
Commissioner for the purposes
of this sub-clause;
Clause 58(A) income of a university or other
educational institution being
run by a non-profit
organisation existing solely for
educational purposes and not
for purposes of profit;
Clause 59 any income which is derived
from investments in securities
of the Federal Government,
profit on debt from scheduled
banks, grant received from
Federal Government or
Provincial Government or
District Governments, foreign
grants and house property held
under trust or other legal
obligations wholly, or in part
only, for religious or charitable
purposes and is actually
applied or finally set apart for
application thereto:
Provided that nothing in this
clause shall apply to so much of
the income as is not expended
within Pakistan:
Provided further that if any
sum out of the amount so set
apart is expended outside
Pakistan, it shall be included in
the total income of the tax year
in which it is so expended or of
the year in which it was set
apart, whichever is the greater,
and the provisions of section
122 shall not apply to any
assessment made or to be made
in pursuance of this proviso.
Explanation.-
Notwithstanding anything
contained in the Mussalman
Wakf Validating Act, 1913 (VI
of 1913), or any other law for
the time being in force or in the
instrument relating to the trust
or the institution, if any amount
is set apart, expended or
disbursed for the maintenance
and support wholly or partially
of the family, children or
descendents of the author of the
trust or the donor or, the maker
of the institution or for his own
maintenance and support
during his life time or payment
to himself or his family,
children, relations or
descendents or for the payment
of his or their debts out of the
income from house property
dedicated, or if any expenditure
is made other than for
charitable purposes, in each
case such expenditure,
provision, setting apart,
payment or disbursement shall
not be deemed, for the purposes
of this clause, to be for religious
or charitable purposes;
Clause 60 any income of a religious or
charitable institution derived
from voluntary contributions
applicable solely to religious or
charitable purposes of the
institution:
Provided that nothing
contained in this clause shall
apply to the income of a private
religious trust which does not
ensure for the benefit of the
public.
===========================================================
TAX ON PURCHASE OR TRANSFER OF IMMOVABLE PROPERTY
In addition to the tax incidence on the seller / transferor of immovable property under section 37A read with section 236C of the Ordinance, a new provision has been inserted for the collection of tax by the Registering or Attesting authority, as the case may be, from the purchaser or transferee of the property.
The amount so collected under this provision shall be adjustable against tax liability, if any of the purchaser / transferee.
This scheme shall not be applicable for expatriate Pakistanis.
The rate of tax to be collected under this section shall be:
===========================================================
S. No Period Rate of Tax
===========================================================
(1) (2) (3)
===========================================================
1. Where value of Immovable 0%
property is up to 2 million.
2. Where the value of Filer 1%
Immovable property is
more than 2 million Non-Filer 2%
===========================================================
Provided that the rate of tax for Non-Filer shall be one per centupto the date appointed by the Board through notification in official gazette.
As per the 'Salient Features' the minimum threshold for the levy of such withholding is indicated at Rs 3 Million as against Rs 2 Million indicated above.
The matter of right of taxation on the transactions involving immovable property by the Federal Government is to be re-examined in the light of Constitutional provisions.
REVAMPING OF MINIMUM TAX REGIME
Minimum tax at the rate of one per cent of turnover is payable under section 113 of the Ordinance. Through the Finance bill, this regime has been revamped as under:
============================================================
Minimum
percentage
of the
person's
============================================================
S.No Person(s) the year
============================================================
(1) (2) (3)
============================================================
1. (a) Oil marketing 0.5%
companies, Oil
refineries, Sui Southern
Gas Company Limited
and Sui Northern Gas
Pipelines Limited ( for
the cases where annual
turnover exceeds rupees
one billion.);
(b) Pakistan International
Airlines Corporation;
and
(c) Poultry industry
including poultry
breeding, broiler
production, egg
production and poultry
feed production.
2. (a) Distributors of 0.2%
pharmaceutical
products, fertilizers and
cigarettes;
(b) Petroleum agents and
distributors who are
registered under the
Sales Tax Act, 1990;
(c) Rice mills and dealers;
and
(d) Flour mills.
3. Motorcycle dealers registered 0.25%
under the Sales Tax Act,
1990.
4. In all other cases. 1%
============================================================
The 'explanation' expected to be introduced to offset the effect of a particular decision of the Superior Court in respect of carry forward of minimum tax credit in certain cases has not been addressed.
MINIMUM TAX ON DISTRIBUTORS OF FAST MOVING CONSUMER GOODS
Distributors of Fast Moving Consumer Goods are now proposed to be liable to Minimum Tax at the standard rate of one per cent as against the previous reduction in rate of such tax of eighty per cent.
WITHHOLDING OF TAX FROM SPORTS PERSON
A special withholding rate of 10% has been prescribed in respect of amount payable in the case of sports person as specie of contracts.
ADVANCE TAX AT IMPORT STAGE
Advance tax at import stage is collected by the Custom Authority at the general rate of five per cent (5%) unless reduced by specific notification / provisions.
A new regime has been prescribed for the collection of advance tax at import stage. Details of the same are given below:
===================================================================
S. No Persons Rate
===================================================================
(1) (2) (3)
===================================================================
1. (i) Industrial 1% of import value as
undertaking increased by customs-
importing duty, sales tax and
remeltablesteel federal excise duty
(PCT Heading
72.04) and directly
reduced iron for its
own use;
(ii) Persons importing
potassic fertilizers
in pursuance of
Economic
Co-ordination
Committee of the
cabinet's decision
No ECC-
155/12/2004 dated
the 9th December,
2004;
(iii) Persons importing
urea; and
(iv) Manufacturers
covered under
Notification No
S.R.O. 1125(I)/2011
dated the 31st
December, 2011.
2. Persons importing pulses 2% of import value as
increased by customs-
duty, sales tax and
Federal excise duty
3. Commercial importers 3% of import value as
covered under increased by customs-
Notification No. S.R.O. duty, sales tax and
1125(I)/2011 dated the federal excise duty
31st December, 2011.
4. Ship breakers on import 4.5%
of ships
5. Industrial undertakings 5.5%
not covered under S.
Nos. 1 to 4
6. Companies not covered 5.5%
under S. Nos. 1 to 5
7. Persons not covered 6%
under S. Nos. 1 to 6
===================================================================
Under the amended regime, the general rate has been increased to five and half per cent (5.5%) and six per cent (6%) in the case of an importer being a company or otherwise as the case may be.
TAXABILITY OF DIRECTORS' FEE
Under section 2(22) of the Ordinance, directorship or any other office involved in the management of the company is treated as 'employment'. Accordingly, in all cases, withholding on such payments is to be made at the rate applicable for the income under the head 'Salary'.
A new provision has been inserted in the Ordinance, whereby every person responsible for making payment for directorship fee or fee for attending board meeting or such fee by whatever name called shall at the time of payment deduct tax at the rate of twenty per cent of the gross amount payable.
This amendment is expected to remove certain other interpretation or manner of application of law in respect of directorship fee and other such payment.
FINAL TAX LIABILITY IN CASE OF NON FILERS
Profit on debt
In the proposed bill, enhanced rate of withholding tax has been prescribed in case if a person is a non-filer as defined in the newly inserted section 2(23A) of the Ordinance. For such persons, the withholding is fifteen per cent (15%) of the amount of profit on debt if such profit is more than Rs 500,000.
The bill also proposes that the final liability of a non-filer shall remain equal to the filer being ten per cent (10%) of the profit on debt and the excess shall be adjustable against tax liability.
These provisions are not applicable if the recipient of profit on debt is a company.
These provisions apparently imply that a person being a non-filer at the time of withholding is entitled to adjust the excess by filing the return.
Dividend
The rate of withholding tax on dividend for non-filers has been enhanced from 10% to 15% except where special rate of tax is prescribed at the rate of 7.5%. Unlike the adjustment for excess withholding for non-filers in the case of profit on debt, no parallel provision has been expressly provided in this case.
Application of the above provisions From practical perspective, a mechanism is to be placed to ascertain the status of a person as being a non-filer at the time of withholding.
COMPULSORY REGISTRATION SCHEME FOR COMMERCIAL AND INDUSTRIAL CONSUMERS OF ELECTRICITY AND NATURAL GAS
Commercial and industrial connection for electricity and natural gas shall not be processed unless the person is registered as a taxpayer under the provisions of the Ordinance.
The taxpayer registration scheme has been prescribed in section 181 of the Ordinance.
COLLECTION OF ADVANCE TAX ON REGISTRATION OF MOTOR VEHICLES
The provisions relating to collection of advance tax have been revamped. Now such taxes shall be collected by the Excise and Taxation department on registration of new locally manufactured motor vehicle and the transfer or registration or ownership of private motor vehicle.
Furthermore, every manufacturer of the motor car or jeep shall collect tax at the time of sale of motor car or jeep.
The prescribed rates are as under:
==================================================================
S. No. Engine Tax for Tax for
==================================================================
1. Upto 850cc Rs 10,000 Rs 10,000
2. 851cc to 1000cc Rs 20,000 Rs 25,000
3. 1001cc to 1300cc Rs 30,000 Rs 40,000
4. 1301cc to 1600cc Rs 50,000 Rs 100,000
5. 1601cc to 1800cc Rs 75,000 Rs 150,000
6. 1801cc to 2000cc Rs 100,000 Rs 200,000
7. 2001cc to 2500cc Rs 150,000 Rs 300,000
8. 2501cc to 3000cc Rs 200,000 Rs 400,000
9. Above 3000cc Rs 250,000 Rs 450,000
==================================================================
In the case of a new locally manufactured or imported vehicle, the tax shall not be collected at the time of registration if evidence is provided that taxes have been collected at the time of sale by the manufacturer or collected at import stage in respect of the same person for the same vehicle.
TAX COLLECTION ON DOMESTIC ELECTRICITY CONSUMPTION
A new provision has been inserted whereby every person preparing bill for domestic consumption of electricity shall collect advance tax in the following manner:
(i) 7.5% if the amount of monthly bill is Rs 100,000 or more.
(ii) 0% if the amount of monthly bill is less than Rs 100,000 Previously, such tax was collected in the case of industrial and commercial consumers.
TAX ON STEEL MELTERS AND RE-ROLLERS ETC. A new provision has been inserted to introduce collection of tax from every steel melter, steel re-roller, composite steel unit registered under the Sales Tax Act on their electricity bills.
This tax shall be collected by the person preparing electricity consumption bill. The rate of collection shall be Re 1 per unit of electricity consumed for the production of steel billets, ingots and mild steel products excluding stainless steel. The aforesaid collection shall be treated as tax on the payment of local purchase of scrap only and shall be non-adjustable and credit shall not be allowed to any person. It has been indicated in the 'Salient Features' that the steel melters, etc can opt out of this regime.
COLLECTION OF TAX ON PURCHASE OF INTERNATIONAL AIR TICKET It has been proposed that every airline, operating in Pakistan, shall be required to collect advance tax on the gross amount of international air tickets issued to the passengers booking one-way or return for Pakistan.
The tax so collected under this section shall be adjustable.
The rate of advance tax shall be as under:
=========================================================
S. No. Type of Ticket Rate
=========================================================
(1) (2) (3) (4)
=========================================================
Filer Non-Filer
1. Economy 0% 0%
2. First/Business/Club 3% 6%
class
=========================================================
EXEMPTION TO PUBLIC SECTOR UNIVERSITIES
Exemption is proposed for any income derived by a Public Sector Universities. Previously such income was exempt under clause 92 of Part I of the Second Schedule to the Ordinance which was omitted by the Finance Act, 2013. A new clause 58A was then inserted in Part I of the Second Schedule to the Ordinance to provide exemption for educational institutions run by Non-profit Organisations.
Through the proposed amendment, the exemption to income tax has been specifically reinstated for public sector universities.
EXEMPTION TO CHINA OVERSEAS PORTS HOLDING
Exemption was available for a period of twenty years to the income of the following:-
(a) Gwadar Free Zone Company Limited
(b) PSAGwadar International Terminal Limited
(c) Gwadar Marine Services Limited
(d) PSAGwadar (Pte) Limited
This exemption has been replaced by an exemption for income derived by China Overseas Ports Holding from Gwadar Port operations for a period of twenty years with effect from February 6, 2007.
EXEMPTION FOR FRUIT PROCESSING OR PRESERVATION UNIT
Exemption is proposed for profits and gains derived by a taxpayer, from fruit processing or preservation unit set up in Baluchistan province, Malakand division, Gilgit - Baltistan and FATA between July 1, 2014 to June 30, 2017, provided the taxpayer is engaged in processing of locally grown fruits.
This exemption is available for the period of five years commencing from the month in which the industrial undertaking is set up or commercial production is commenced, whichever is later.
COAL MINING PROJECT IN SINDH
Exemption is proposed for profits and gains derived by a taxpayer from a coal mining project in Sindh for supply of coal exclusively to power generation projects.
Such entities have also been exempted from minimum tax under section 113 of the Ordinance.
The words 'from sale of coal' are to be inserted after the word 'sale of electricity' in the said clause to clarify the matter. This appears to be an omission.
Dividends paid by a company supplying coal exclusively to power generation projects are also proposed to be taxed at a reduced rate of 7.5%.
WITHHOLDING TAX FOR RICE EXPORTERS ASSOCIATION
Following reduced rate of withholding tax under section 153 on sale value of rice sold by Rice Exporters Association of Pakistan to Utility Store Corporation have been withdrawn:
(i) 1% on the sale value of rice sold in accordance with the agreement signed with Ministry of Food, Agriculture and Livestock (MINFAL) on April 30, 2008;
(ii) 0.75% on the sale value sold in accordance with the agreement signed with MINFAL on May 5, 2008;
NEW INDUSTRIAL UNDERTAKING SET UP WITH FOREIGN DIRECT INVESTMENT (FDI)
A special concession has been provided for the investment in new Industrial Undertakings if the same are financed on equity basis by way of FDI.
It has been proposed that the rate of tax on income of such entities shall be 20% of such income as against the normal corporate rate provided the company sets up an industrial undertaking between July 1, 2014 to June 30, 2017 and 50% of the cost of the project including working capital is through owner equity FDI.
This reduced rate would be available for a period of five years beginning from the month in which the industrial undertaking is set up or commercial production is commenced whichever is later.
WITHHOLDING TAX ON ADVERTISING AGENTS
The reduced rate of 5% withholding tax in the case of payments of commission to Advertising Agents is proposed to be increased at 7.5%.
ALLOWANCES OF PILOTS
Flying allowance of certain pilots to the extent of amount not exceeding Basic Salary is presently taxed at 2.5% as a separate block of income.
Total allowances received by pilots of any Pakistani Airlines are now proposed to be taxed at a rate of 7.5% provided that such reduction will be available to so much of the allowance as exceeds an amount equal to the basic pay.
The proposed reduction should have been restricted to the allowances not exceeding the amount equal to the basic pay as was previously available for flying allowance.
WITHHOLDING TAX EXEMPTION ON PAYMENT OF GOODS
It is proposed that tax will not be withheld under section 153(1)(a) on -
(1) payments for purchase of scrap by steel melters, steel re-rollers, composite steel units. The proposed amendment provides that such exemption is applicable if tax is collected however reference to specific section under which such tax is to be collected has not been specified. It appears that the legislative intent was to refer newly proposed section 235B; and
(2) payments received by ship breakers for ships imported after July 1, 2014.
FOREIGN NEWS AGENCIES
The exemption from withholding tax under section 152(2) in respect of payments to foreign news agencies, syndicate services, and non-resident contributors having no Permanent Establishment in Pakistan is proposed to be withdrawn.
OPTION TO CERTAIN PERSONS FOR TAXATION UNDER NORMAL REGIME
Through Finance Act, 2012, an option was introduced for Commercial Importers, traders, Exporters and Indenting commission agents to be taxed under normal regime, subject to a condition that minimum tax liability in respect of such income is not less than-
-- 60% of tax collected at import stage;
-- 70% of tax deducted at source on such sales;
-- 50% of the tax collected at the time of realisation of export proceeds and indenting commission
The provisions relating to this option have been revamped and the scope has also been extended to certain other persons whereby the provisions relating to Final Tax Regime would not apply if the person opts to file return of total income alongwith accounts and documents as may be prescribed, subject to the condition that minimum tax liability under normal tax regime shall not be less than-
(a) Commercial Importer - 5.5% of the imports if the person is a company and 6% in other cases
(b) Sale of goods - 3.5% of the gross amount of sales if the person is a company and 4% in other cases
(c) Contracts - 6% of contract receipts if the person is a company; 6.5% otherwise
(d) Services provided to Exporter & Export House - Services of stitching, dying, printing, embroidery, washing, sizing, and weaving to an Exporter or Export House - 0.5% of the gross amount of services received
(e) Petrol Pump Operators - 10% of the commission or discount received on sale of petroleum products by Petrol Pump Operators
(f) Commission agents - 10% of the amount of brokerage or commission
Under the proposed provisions, the minimum tax incidence if a person opts for normal tax regime is equal to the liability otherwise payable under FTR. The differential in the tax rate earlier available has been removed / narrowed. Now, the benefit for opting out of FTR is inter alia effectively restricted to adjustment / carry forward of losses.
COMPANIES OPERATING TRADING HOUSES
An explanation is proposed to be inserted whereby the exemption from applicability of section 153 has been restricted on companies operating certain trading houses as a recipient and not as a withholding agent.
With regard to the conditions of exemption from section 113 and 153 (as a recipient) it has been clarified that such companies should be registered with Sales Tax department under the Sales Tax Act, 1990.
INITIAL ALLOWANCE ON BUILDINGS
The rate of initial allowance of Buildings is proposed to be reduced from 25% to 10%.
SALE OF SPECTRUM LICENSE
By way of deeming provision, it has been prescribed that income from sale of spectrum license by PTA shall be treated as income of the Federal Government and not that of PTA.
REDUCED TAX RATE FOR DISABLED PERSONS
A relief has been provided by way of reduced rate to the extent of 50% for the employment income of disabled persons in case where their income is less than Rs 1 Million.
RATE OF ADVANCE TAX ON FUNCTIONS AND GATHERINGS, ETC
The rate of adjustable withholding tax on functions and gatherings has been reduced from 10% to 5%.
COLLECTION OF TAX ON CASH WITHDRAWALS
The rate of advance tax collection on cash withdrawals in case of non-filer has been increased from 0.3% to 0.5% of the amount of withdrawal.
TAX COLLECTION ON MOBILE PHONE SUBSCRIBERS
The rate of advance tax collection on mobile phone bills is proposed to be reduced from 15% to 14%.
INPUT TAX ADJUSTMENT - VAT REGIME
Under the VAT regime, in principle, all input taxes are adjustable against output tax. This concept is laid in section 7 of the Act. Through various notifications (including SRO 490(I)/2004 currently in place) certain input tax adjustments were made inadmissible, which is a departure from VAT regime.
Such departures through notifications were not generally approved by the Courts leading to constant litigation against the Tax authorities.
In the Finance Bill 2014, the concept of restriction has been made a part of law which has codified the effective abolition of complete VAT regime the result of which is that only the following input tax can be claimed against output tax:
-- Goods imported or purchased for the purpose of sale or re-sale by to registered person;
-- Direct raw material, ingredient, part, component or packing material used in the manufacture or production of taxable goods;
-- On electricity, natural gas and other fuel consumed directly in the declared business premises for the manufacture, production or supply of taxable goods; or
-- Plant, machinery and equipment used in the declared business premises for the manufacture, production or supply of taxable goods.
The concept of restriction of input tax has been further amplified by providing specific provision in section 8 of the Act. Input tax relating to following goods and services have specifically been considered inadmissible under the Act:
-- Goods and services not related to the taxable supplies;
-- Goods and services acquired for personal and non-business consumption;
-- Goods used in immovable property; and
-- Vehicles, their parts, electrical appliances, furniture, furnishings, office equipment other than goods acquired for sale or re-sale.
DETERMINATION OF RETAIL PRICE
Presently, manufacturers of goods subject to sales tax on retail price basis are required to pay sales tax at the highest retail price where more than one retail price is fixed by the manufacturers for any particular brand or variety of such goods.
It is now proposed to authorise the Federal Board of Revenue to specify zones or areas only for the purposes of determining highest retail price for any brand or variety of goods. This seems to be a positive amendment aimed at resolving the long outstanding grievance of such manufacturers with regard to payment of sales tax on highest retail price without taking into account geographic and economic factors.
NO ADJUSTMENT ON INPUT FOR FURTHER TAX
An amendment has been introduced to the effect that the amount collected by a seller of goods as further tax shall be deposited separately without adjustment of any input tax.
This effectively means that if the input tax is in excess of the aggregate of output tax and further tax, then the amount of further tax shall be paid separately and such excess shall be carried forward for adjustment against the output tax for subsequent tax periods.
NINTH SCHEDULE - SALES TAX ON CELLULAR MOBILE PHONES
Specified provision for levy of sales tax on cellular mobiles was laid down in SRO 460(I)/2013 dated May 30, 2013. Such provisions have now been made the part of the law by way of the Ninth Schedule to the Act.
RETAILERS
Retailers of international and national chains in air-conditioned malls are to be charged sales tax through their electricity bills at 5 and 7.5 per cent in addition to sales tax charged on supply of electricity.
EXTENSION OF POWERS OF THE TAX OFFICER / FBR
(a) Board and its officers have been proposed to be empowered to monitor production, sale of taxable goods and stock position without obtaining warrants from Magistrate. The amendment seeks to undo the decisions of the Appellate Tribunal on this matter.
(b) Electronic scrutiny of data filed through returns or otherwise available with the Board has been introduced. It has been proposed that an advance notice of deficiencies would be provided to registered persons before any legal or penal actions.
FIFTH SCHEDULE
Goods earlier zero rated under SRO 549(I)/2008 and SRO 670(I)/2013 are proposed to continue to be zero rated under Fifth Schedule whilst the said notifications will be rescinded from July 1, 2014, in view of policy for eliminating SRO culture.
ZERO RATING FOR STATIONERY AND DAIRY INDUSTRIES
Stationery and Dairy industries are eligible for zero-rating. Previously such zero-rating was prescribed under SRO 670(I)/2013 dated July 18, 2013. This SRO has now been incorporated as a part of statute by an entry in the Fifth Schedule to the Act. Such items have also been included in the Sixth Schedule representing goods exempt from tax. This duplication appears to be an error as exemption will disentitle the refund of input tax borne on such goods.
SIXTH SCHEDULE AND EIGHTH SCHEDULE
New Exemptions
Sixth Schedule provides exemption from sales tax. Following new entries have been inserted in the said Schedule.
========================================================================
S. No. Description HS Code
========================================================================
I IMPORTS AND
SUPPLIES
1. In serial No 24 of Vegetable oil etc. 1511.1000
the Schedule
2. In serial No 59 of Cochlear implants 99.37
the Schedule systems - hearing
aids
3. Serial No 109 of Goods imported Respective
the Schedule temporarily subject headings
to certain
conditions
4. Serial No 113 of High efficiency 8413.7010,
the Schedule irrigation 8424.8100,
equipment 8424.2010,
8481.1000,
8481.3000,
9026.2000,
9032.8990
5. Serial No 114 of Green House 8430.3100,
the Schedule Farming and other 8430.3900,
related equipment 9406.0010
6. Serial No 115 of Plant, machinery Respective
the Schedule and equipment for headings
fruit processing
and preservation
units in Gilgit-
Baltistan,
Balochistan and
Malakand.
7. Serial No 116 of Plant, machinery Respective
the Schedule and equipment headings
imported for
setting up
industries in FATA
Subject to
conditions
applicable under
Customs Act, 1969.
========================================================================
Abolition of notifications for exemptions and reduced rates and insertion of the respective provisions in the Act
Exemptions/reduced rates previously allowed under Sixth Schedule, SRO 551(I)/2008, SRO 575(I)/2013, SRO 501(I)/2013, SRO 727(I)/2011 and 69(I)/2006 other than the following are proposed to be continued under Sixth Schedule, in view of policy for eliminating SRO culture.
======================================================================================
S. Description HS Code Applicable Comments
No. sale tax rate
======================================================================================
1. Retailers Respective See proposed Previously
whose annual headings section 3(9) exempted
turnover from of the ST Act under
supplies in any item 3 of
tax period Sixth
during the last Schedule.
12 months
ending any tax
period does
not exceed Rs
5 million
2. Oilseeds Respective 5% reduced Previously
meant for headings rate under item 10 of
sowing, Eight SRO
subject to Schedule 551(I)/20
certain 08
conditions
3. Cinematograp 3706.1000, * 17% Previously
hic film 3706.9000 standard rate item 19 of
exposed and SRO
developed 551(I)/20
08
4. Platinum 7110.1100, * 17% Previously
7110.1900 standard rate item 20 of
SRO
551(I)/20
08
5 Palladium 7110.2100 * 17% Previously
7110.2900 standard rate item 21 of
SRO
551(I)/20
08
6. Diamonds 7102.2100 * 17% Previously
7102.2900 standard rate item 22 of
7102.3900 SRO
551(I)/20
08
7. Precious 7103.1000 * 17% Previously
stones 7103.9100 standard rate item 23 of
7103.9900 SRO
551(I)/20
08
8. Synthetic or 7104.1000 * 17% Previously
reconstructed 7104.2000 standard rate item 24 of
stones, 7104.9000 SRO
precious or 551(I)/20
semi-precious 08
9. Re-meltable 72.04 * 17% Previously
scrap standard rate item 31 of
SRO
551(I)/20
08
10. Raw cotton Respective 5% reduced Previously
and ginned headings rate only at both
cotton import stage import
under Eight and
Schedule. supply
were
exempt
vide item
33 of SRO
551(I)/20
08
11. Soya bean 2304.0000 5% reduced Previously
meal rate under exempt
Eight vide item
Schedule. 15 of SRO
501(I)/201
3
12. Oil cake and 2306.1000 5% reduced Previously
other solid rate under exempt
residues, Eight vide item
whether or not Schedule. 16 of SRO
ground or in 501(I)/201
the form of 3
pellets
13. Directly 72.03 5% reduced Previously
reduced iron rate under exempt
Eight vide item
Schedule. 21 of SRO
501(I)/201
3
14. Purpose build 8703.3226 * 17% Previously
taxis, subject 8703.3227 standard rate exempt
to certain vide item
conditions 25 of SRO
501(I)/201
3
15. Machinery Respective 5% reduced Previously
and headings rate under exempt
equipment for Eight vide item
of grain subject to 575(1)/20
handling and conditions. 06
storage
facilities
16. Cool chain Respective 5% reduced Previously
machinery and headings rate under exempt
equipment Eight vide item
Schedule 3 of SRO
subject to 575(1)/20
conditions. 06.
17. Certain items Various 5% reduced Previously
imported by rate under exempt
call centre, Eight vide item
business Schedule 4 of SRO
processing subject to 575(I)/20
outsourcing conditions. 06.
facilities
approved by
telecommunic
ation authority
18. Machinery, Respective * 17% Previously
equipment headings standard rate exempt
and other vide items
items required 8 of SRO
by hotels, 575(I)/20
recreational o6.
services
related
projects etc
approved by
Tourism
Ministry
19. Machinery, Respective 5% reduced Previously
equipment headings rate under exempt
and capital Eight vide item
goods, Schedule 9 of SRO
specialised subject to 575(I)/2006.
vehicles, conditions.
spares,
chemicals and
consumables
etc meant for
mineral
exploration
phase
20 Complete Respective 5% reduced Previously
plants for headings rate under exempt
relocated Eight vide item
industries Schedule 15 of SRO
subject to 575(I)/2006.
conditions.
21. Machinery, Respective * 17% Previously
equipment headings standard rate exempt
and other vide item
capital goods 16 of SRO
etc for certain 575(I)/2006
service sectors .
22. Machinery, Respective * 17% Previously
goods headings standard rate exempt
equipment vide item
and capital 17 of SRO
imported for 575(I)/2006.
establishing
wholesale
/ retail chain
stores
23. Machinery, Respective 5% reduced Previously
equipment headings rate under exempt
and capital Eight vide item
goods for oil Schedule 20 of SRO
refining, subject to 575(I)/2006.
petrochemical, conditions.
etc.
24. Air handling Respective * 17% Previously
units headings standard rate exempt
vide item
24 of SRO
575(I)/2006.
25. Certain Respective * 17% Previously
Valves, tubes, headings standard rate exempt
fans etc items vide item
imported by 25 of SRO
manufacturing 575(I)/2006.
sectors
26. Proprietary 7308.4000 5% reduced Previously
formwork 3917.2390 rate under exempt
systems for 3926.9099 Eight vide item
building 7308.4000 Schedule 30 of SRO
structures 7308.9090 subject to 575(I)/2006.
subject to 7318.1590 conditions.
certain 7318.1690
conditions 7318.1900
7318.2290
8205.2000
8205.5900
8425.4900
27. Heat 8415.8200 * 17% Previously
ventilation air standard rate exempt
conditioner vide item
32 of SRO
575(I)/2006.
28 Certain Various * 17% Previously
machinery and standard rate exempt
equipment vide item
related to 33 of SRO
broadcasting 575(I)/2006.
29. Machinery 8460.0000 * 17% Previously
and standard rate exempt
equipment vide item
imported by 37 of SRO
surgical 575(1)/2006.
industry
30. Machinery Various * 17% Previously
and standard rate exempt
equipment vide item
imported by 38 of SRO
cutlery 575(I)/2006.
industry
31. Import of Respective 5% reduced Previously
plant and headings rate under exempt
machinery not Eight vide SRO
manufactured Schedule 727(I)/2011.
locally and subject to
having no conditions.
compatible
local
substitute
subject to
certain
conditions
32. Import of Respective * 17% Previously
rapeseed, headings standard rate covered
sunflower seed under
and canola SRO
seed by 69(I)/2006.
solvent
extraction
industries
previously
subject to
reduced rate
of 14%.
======================================================================================
SPECIAL SALES TAX REGIME FOR EXPORT ORIENTED SECTORS
SRO 1125(I)/2011 provides special sales tax regime for export oriented sectors. As per the 'Salient Features' of the Finance Bill, the standard rate of 17% shall be payable on the import of finished articles of leather and textile instead of present rate as prescribed in the said SRO. Further details shall be available in the amended SRO.
HIGHEST RETAIL PRICE
Presently, manufacturers of goods subject to duty on retail price basis are required to pay duty at the highest retail price where more than one retail price is fixed by the manufacturers for any particular brand or variety of such goods.
It is now proposed to authorise the Federal Board of Revenue to specify zones or areas only for the purposes of determining highest retail price for any brand or variety of goods. This seems to be a positive amendment aimed at resolving the long outstanding grievance of such manufacturers with regard to payment of duty on highest retail price without taking into account geographic and economic factors.
There is an editorial error whereby reference of section 13 has been made in the bill, instead of section 12.
REVISION IN SCOPE AND RATE OF DUTY
LOCALLY PRODUCED CIGARETTES
Description of and duty on the locally produced cigarettes (PCT heading 24.02) is proposed to be enhanced as under, with effect from July 1, 2014:
=================================================================
S. No. Description of goods Revised rate
=================================================================
9 Locally produced cigarettes if Rs 2,632
their on-pack printed retail per 1,000
price exceeds Rs 2,706 per cigarettes.
1,000 cigarettes
10 Locally produced cigarettes if Rs 1,085 per
their on-pack printed retail 1,000 cigarettes.
price does not exceed
Rs 2,706 per 1,000 cigarettes
=================================================================
For the purpose of levy, collection and payment of above duty, cigarette manufacturers are not allowed to reduce price from the level adopted on the day of announcement of the latest Budget. Further, manufacturers and importers are restricted from fixing the price of a new cigarette brand variant, of the same existing brand family, at a price below the lowest actual price of existing variant in the same brand family on the day of announcement of the Budget for the current financial year, which for the purposes of the forthcoming financial year would be June 3, 2014.
Further, price of any new brand, introduced in the market, shall not be less than 95% of the price at which the highest number of excise duty paid cigarettes were sold in the previous fiscal year.
CEMENT
The duty on Portland cement, aluminous cement, super sulphate cement, whether or not coloured or in the form of clinkers (PCT heading 25.23) is proposed to be levied at 5% of the retail price. Currently, duty is levied at Rs 400 per metric ton.
MOTOR VEHICLE
In order to promote the local industry, it appears that the government intends to withdraw duty on the locally manufactured motor vehicles having cylinder capacity of 1800cc or above.
However, the proposed amendment does not seem to be in line with the above intention as the current draft leaves the phrase 'other motor vehicles' intact. This needs to be suitably amended.
INTERNATIONAL TRAVEL BY AIR
Duty on travel by air, embarking on international journey from Pakistan, has been proposed to be enhanced as under, with effect from July 1, 2014:
-- For economy and economy plus - Rs 5,000 (currently Rs 3,840)
-- For club, business and first class -
Rs 10,000 (currently Rs 6,840)
TELECOMMUNICATION SERVICES
The rate of duty on telecommunication services is proposed to be reduced from 19.5 % to 18.5% of the charges.
Further, telecommunication services which are subject to provincial sales tax and where such tax is being collected by the respective province through its own board or authority are excluded from the purview of duty. This would end the ongoing litigation resulting from the demand of payment of duty by federal tax authorities in some cases concurrently with the provincial sales tax, leading to implied double incidence on the same services.
Moreover, it appears that no proposal is being made in the Bill for other services such as banking services, franchise services, etc. which are also facing similar issues due to concurrent charge of excise duty and provincial sales tax on such services.
CHARTERED FLIGHTS
Duty at the rate of 16 % is being proposed on chartered flights (PCT heading 98.03). Earlier, no duty was payable on such flights.
This amendment appears to have been made to clarify the status of charge of duty on chartered flights which were earlier provided only in the Rules not in the First Schedule to the Act.
DUTY ON AERATED BEVERAGES
As discussed earlier with reference to sales tax, capacity tax on aerated beverages, introduced last year, is proposed to be withdrawn with effect from July 1, 2014. As a result, aerated beverages would be again subject to duty at 9% on retail price basis.
This would end the ongoing litigation on capacity tax, the imposition of which was constitutionally challenged by some beverage companies.
The proposed amendment might result in transitional issues such as the treatment of duties / sales tax paid on input goods not allowed earlier as a result of ceiling prescribed under the capacity regime and existing stocks on which capacity tax was paid and which is to be sold after June 30, 2014. This needs clarification by the Federal Board of Revenue.
CRUDE PALM OIL
The 'Salient Features of Sales Tax and Federal Excise Budgetary Measures (FY 2014-15)' refers to the proposed uniform treatment of crude palm oil in respect of exemption of sales tax and charging of federal excise duty, however, this matter has not been specifically covered in the Bill.*
ABOLITION OF SROs AND INSERTION IN THE RESPECTIVE PROVISIONS OF CUSTOMS ACT
Fifth Schedule has been enacted to Customs
Act, 1969, whereunder goods subject to customs duty at concessionary rates under various SROs have been consolidated with certain changes.
These changes are described in a separate section in following pages.
POWER OF CUSTOMS AUTHORITES TO COLLECT TAXES
Customs authorities have now been empowered to collect taxes, in addition to duty, which were short collected or erroneously refunded. The amendment has been made in view of certain judgements of the courts where the recovery of taxes was held to be beyond jurisdiction of customs authorities.
NARCOTICS AND NARCOTIC SUBSTANCES
Cases involving narcotics and narcotic substances are now to be tried in Special Courts created under the Control of Narcotics Substances Act, 1997 (Act).
VALUE OF IMPORTED AND EXPORTED GOODS
Certain amendments have been introduced in the provisions relating to valuation of imported goods in respect of transaction value of identical goods.
FIFTH SCHEDULE TO CUSTOMS ACT, 1969
In the Fifth Schedule, following SROs have been consolidated with certain changes:
====================================================
Part of the Fifth Schedule
to the Customs Act, 1969
====================================================
(i) SRO 575(I)/2006 I
(ii) SRO 567(I)/2006 II & III
====================================================
EXEMPTION FROM CUSTOMS DUTY FOR UNITS ESTABLISHED IN GILGIT-BALTISTAN, BALOCHISTAN, MALAKAND AND FATA ON IMPORT OF PLANT & MACHINERY
Under Fifth Schedule to the Customs Act, 1969, plant, machinery and equipment imported for setting-up fruit processing and preservation industrial units in Gilgit-Baltistan, Balochistan and Malakand Division and for setting-up industries in FATA have been exempted from whole of customs duty, subject to certain conditions.
INCREASE IN DUTY - SRO 575
The rate of customs duty has been increased in respect of following goods, while consolidating SRO 575(I)/2006 in the Fifth Schedule:
=========================================================================================================
Description PCT Old rate in New rate in
SRO 575 Fifth Schedule
=========================================================================================================
Agriculture Machinery
Fertilizer and Plant Protection
Equipment.
Spray pumps (gear and diaphragm 8413.8110, 0% 5%
type). 8413.8190
All types of mist blowers. 8424.8100 0% 5%
Harvesting and Threshing
Machinery.
Fodder rake. 8201.3000 0% 5%
Pruner/shears. Respective 0% 5%
Headings
Forage choppers. 8433.2000 0% 5%
Dairy, Livestock and Poultry,
Machinery.
Milk chillers irrespective of the fact 8418.6910, 0% 5%
whether manufactured locally or not. 8418.6990
Tubular heat exchanger (for 8419.5000 0% 5%
pasteurization).
Milk processing plant, milk spray drying 8419.8100 0% 5%
plant, Milk UHT plant. 8419.3900
Grain storage silos for poultry. 9406.0030 0% 5%
Insulated sand witch panels Respective 0% 5%
heading
Milk filters. 8421.3990 0% 5%
Green House Farming and Other
Green House Equipment.
Geo-synthetic liners (PP/PE Geo synthetic 3921.9010, 0% 5%
films of more than 500 microns). 3921.9090
Machinery, Equipment and Other
Capital Goods for Miscellaneous
Agro-Based Industries Like Milk
Processing, Fruit, Vegetable or
Flowers Grading, Picking or
Processing etc.
Evaporators for juice concentrate. 8419.8990 0% 5%
Machinery used for dehydration and 8419.3100, 0% 5%
freezing. 8418.6990
Heat exchange unit. 8419.5000 0% 5%
Machinery used for filtering and refining 8421.2200 0% 5%
of pulps/juices.
Complete Rice Par Boiling Plant 8419.8990 0% 5%
& other
Respective
Headings.
Horticulture and Floriculture
Machines for making cartons, boxes, 8441.3000 0% 5%
cases, tubes, drums or similar containers,
other than by moulding
PU panels (Insulation) Respective 0% 5%
headings
Gen set 10-25 KVA 8502.1120, 0% 5%
8502.1130
Refrigerating machines with engine fitted 8418.6920 0% 5%
on common base for refrigerated
containers.
Other refrigerating or freezing chests, 8418.5000 0% 5%
cabinets
Tubes, pipes and hollow profiles of iron 7304.3100 0% 5%
and steel 7304.3900
Hand tools Respective 0% 5%
Headings
Fish or shrimp farming and seafood
processing machinery and
equipment.
Compressor 8414.8090 0% 5%
Generator 8502.1130, 0% 5%
8502.1190,
8502.1200
Condenser 8418.9990 0% 5%
Flat freezer 8418.3000 0% 5%
Boast freezer 8418.4000 0% 5%
Fiber glass tubs 7019.9090 0% 5%
Insulated plants 8418.6990 0% 5%
Flak ice plants 8414.6990 0% 5%
Respective 0% 5%
Machinery and equipment for Headings
development of grain handling and
storage facilities.
Cool chain machinery and Respective 0% 5%
equipment. Headings
Following items imported by Call
Centers, Business Processing
Outsourcing facilities duly approved
by Telecommunication Authority.
Telephone sets/head sets. 8517.1100 5% 15%
Cat 5/Cat 6/Power cables 8544.4990 5% 15%
PAPX Switch 8517.6290 5% 15%
Plasma TV 8528.7212 5% 15%
Dedicated telephone exchange system for 8517.6290 5% 15%
call centers.
Other (digital call recorders) 8519.8990 5% 15%
Following machinery, equipment,
apparatus, and medical, surgical,
dental and veterinary furniture,
materials, fixtures and fittings
imported by hospitals and medical
or diagnostic institutes:-
Medical Equipment.
Automatic Cell Separator for preparation 9018.9090 0% 5%
of platelets.
Complete plants for relocated Respective 5% 10%
industries. Headings
Machinery, equipment and other Respective 5% 10%
capital goods imported by an Headings
industrial concern.
Following machinery and 0% 5%
equipment for marble, granite and
gem stone extraction and
processing industries.
Polishing cream or material 3405.4000, 0% 5%
3405.9000
Fiber glass mesh 7019.5190 0% 5%
Chain saw/diamond wire saw in all sizes 8202.4000, 0% 5%
and dimensions and spares thereof, 8202.9100
diamond wire joints all types and
dimensions, chain for chain saw and
diamond wires for wire saw and spare
widia.
Gin saw blades. 8202.9910 0% 5%
Gang saw blades/diamond saw 8202.9990 0% 5%
blades/multiple blades or all types and
dimensions.
Air compressor (27cft and above) 8414.8010 0% 5%
Machine and tool for stone work; sand 8464.9000 & 0% 5%
blasting machines; tungsten carbide tools; Respective
diamond tools & segments (all type & headings
dimensions), hydraulic jacking machines,
hydraulic manual press machines,
air/hydro pillows, compressed air rubber
pipes, hydraulic drilling machines,
manual and power drilling machines, steel
drill rods and spring (all sizes and
dimensions), whole finding system with
accessories, manual portable rock drills,
cross cutter and bridge cutters.
Integral drilling steel for horizontal and 8466.9100 0% 5%
vertical drilling, extension thread rods for
pneumatic super long drills, tools and
accessories for rock drills.
Machinery, equipment and other Respective 0% 5%
project related items for setting up Headings
of hotels located in an area of 30 km
around the zero point in Gwadar.
Proprietary Formwork System for 7308.4000 5% 10%
building/structures of a height of
100 ft and above and its various
items/ components consisting of the
following, namely:-
Plastic tube. 3917.2390 5% 5%
Plastic tie slot filters/plugs, plastic cone. 3926.9099 5% 10%
Standard steel ply panels, Special sized 7308.4000 5% 10%
steel ply panels, wedges, tube clamps (B-
Type & G Type), push/pull props,
brackets (structure), steel soldiers
(structure), drop head, standard, prop tic,
buard rail post (structure), coupler brace,
cantilever frame, decking beam/Infill
beam and doorway angles.
Lifting Unit (Structure) 7308.9090 5% 10%
Bolts, tie bolts, anchor bolt assembly 7318.1590 5% 10%
(fastener), anchor screw (fastener).
Nuts 7318.1690 5% 10%
Steel pins, tie wing nut (fastener). 7318.1900 5% 10%
Steel washers, water plate (fastener). 7318.2290 5% 10%
Adjustable base jack (thread rod with nut 8425.4900 5% 10%
and steel plate), adjustable fork head
(threaded rod with nut and steel channel).
=========================================================================================================
WITHDRAWAL OF CONCESSIONARY RATES - SRO 575
Concessionary rates provided in SRO 575 (I) / 2006 in respect of following goods have not been incorporated in Fifth Schedule; hence general Tariff rates will be applicable thereon:
============================================================================================
Description PCT heading
============================================================================================
Agricultural Machinery
Land Leveling Machinery And Equipment
Bulldozers and angle dozers 8429.1100,
8429.1900
Graders and levelers 8429.2000
Scrappers 8429.3000
Bulldozer and angle dozer blades. 8431.4200
Bulldozers, pulled soil scrappers, capacity 20-25m3. [8429.1100
8429.1900
8429.3000]
Laser land-levelers, hydraulically driven land levelers, land 8432.8090
planers, stone collectors (capacity 1.5-2.5m) and wind rowers
(capacity 1.5-2.5 m).
Survey equipment. 9015.2000,
9015.8000
Tillage, Seeding And Planting Machinery And
Equipment
Ploughs 8432.1010,
8432.1090
Harrows, scarifiers, cultivators including inter-row cultivators, 8432.2100,
weeders, tillers, hoes, rotary hoes and rotary tiller weeders (above 90 8432.2910,
HP). 8432.2990
Seeders, planters, pneumatic planters, transplanters, vegetable 8432.3010,
seedling transplanters, paddy seeding raising equipment, cane 8432.3090
ratoners, cane planters and mechanical hand diblers.
Rotavators. 8432.8010
Para plow-sub-soiler (with vibratory mechanism) and bed shapers. 8432.8090
Discs for agricultural ploughs 8432.9000
Fertilizer and Plant Protection Equipment.
All types of sprayers (self propelled, manual, power driven, ULV, 8424.8100
tractor/trolley mountable) and electronic knapsack sprayers
excluding manual knapsack sprayers.
Spray nozzles assembly, spray nozzles and nozzles tips. 8424.9010
Herbicides applicators (including band applicators), fire band weed 8432.4000,
applicators, granular applicators, slurry spreaders, manure [8432.8090]
spreader/ composite shredder.
Dust application machinery and equipment 8432.8090
High Efficiency Irrigation and Drainage Equipment.
Tile drain laying equipment. 8426.4900
Dredger/ excavator/ dragline equipment/ back hoe trenchers; Omitted
8429.5900
Tractor mounted rotary ditcher or chain trencher (excluding 8430.6900
tractor).
Direct power rotary drilling rigs. 8430.4900
Canal concrete lining machine. 8430.5000
Harvesting and Threshing Machinery.
Haymaking and bailing machinery. 8433.3000
Straw or fodder balers. 8433.4000
Combine harvesters threshers. 8433.5100
Root or tuber harvesting machines. 8433.5300
Sugarcane, potato, onion, garlic, fruit, groundnut etc., harvester/ 8433.5300,
digger; 8433.5900
Cotton picker, stock pullers cum shredder, rotary slusher. 8433.5900
Fodder/forage wagon. 8716.8090
Post-harvest Handling and Processing Machinery.
Fodder and feed cube making machinery. 8433.4000
Machinery for cleaning, sorting or grading eggs, fruits or other 8433.6000
agriculture produce including Stationery/moveable seed processing
units
Plants and essence extractors for flowers/horticulture. 8436.8000
Machine for cleaning, sorting or grading seed, grain or dried 8437.1000
leguminous vegetables.
Rice whitener, rice polisher, rice flow meter and magnetic separator. 8437.8000 and
respective
headings
Dairy, Livestock and Poultry, Machinery.
Milking machines. 8434.1000
Dairy machinery 8434.2000
Milk evaporator. 8419.3900
Cream separators. 8421.1100
Homogenizer. 8434.2000
Machinery for preparing animal feeding stuffs. 8436.1000
Slurry digester. 8436.8000
Veterinary equipment 9018.9090
Incubators, brooders and other poultry equipments. 8436.2100,
8436.2900
Evaporative Air Cooler/Cooling System. 8479.6000
Evaporative Cooling Pad. 8479.9010
Machinery, Equipment and Other Capital Goods for
Miscellaneous Agro-Based Industries Like Milk
Processing, Fruit, Vegetable or Flowers Grading, Picking
or Processing etc.
Packing or wrapping machinery (including heat shrink wrapping 8422.4000
machinery).
Scales for continuous weighing of goods on conveyors. 8423.2000
Machinery for the preparation of meat or poultry. 8438.5000
Conveyor belt of a kind used in slaughter house. 8428.3300
Machinery for filling, closing, sealing or labeling bottles, canes etc. 8422.3000
Presses, crushers and similar machinery used in the manufacture of 8435.1010
fruit juices.
Shear machinery. 8433.2000
Machinery used in the milling industry. 8437.8000
Machinery for the preparation of roots, nuts or vegetables. 8438.6000
Pressing and ginning machinery for cotton ginning industry. 8445.1990
8479.8990
Solar heating equipment. 8541.4000
Horticulture and Floriculture
Evaporative air coolers 8479.6000
Battery Operated Fork Lifters (upto 3 tons) 8427.1000
Knives & cutting blades 8208.4000
Other machinery 8438.8090
Agricultural horticultural machinery & parts thereof 8432.0000
Other agricultural, horticultural, forestry or be-keeping machinery. 8436.8000
Fish or shrimp farming and seafood processing machinery
and equipment.
Ammonia Gas pipes 7411.2900
IQF plants 8438.5000
Fish filleting machine 8438.5000
Following items imported by Call Centers, Business
Processing Outsourcing facilities duly approved by
Telecommunication Authority.
UPS, inverters/converters. 8504.4010
8504.4090
Fax machines 8443.3260
Photo copiers 8443.3910
IP Phones 8517.1890
Dialers 8517.7000
Generator. 8502.1200
Multimedia projectors 8528.6110
Video conferencing equipment. 8525.8090
CCTV 8525.8010
PUD's 8525.8090
Parts, voice cards. 8517.7000
VAST terminals 8525.6040
Following items imported by the local assemblers of
vehicles and companies having CNG licenses:
Compressors 8414.8030
Mass Flow CNG dispensers 8413.1100
Storage cylinders 7311.0000
CNG vehicle Cylinders. 7311.0000
CNG vehicle conversion kits. 8409.9191,
8409.9991
LPG Dispensers imported by a company having LPG licence. 8413.1100
Following items imported by the companies having LPG licence:-
LPG pumps 8413.1990
Control panels 8537.1090,
8537.2000
LPG Dispensers 8413.1100
LPG vehicle conversion kits. 8409.9199
Following machinery, equipment, apparatus, and medical,
surgical, dental and veterinary furniture, materials,
fixtures and fittings imported by hospitals and medical or
diagnostic institutes:-
Medical Equipment.
Operating Lights. 9018.9090
Breathing Bags. 9020.0020
Automatic blood cell counter. 9018.9090
Disposable Medical Devices
Burettes. 7017.9000
Machinery, equipment and other items required for Respective
setting up, up-gradation and expansion of hotels (3 stars Headings
and above), tourism; sporting and other recreation
services related projects as approved by the Ministry of
Tourism.
Machinery and equipment for hotels (below 3 stars). Respective
Headings.
Machinery, equipment and other capital goods for Service Respective
Sectors mentioned below:- Headings
(i) Wholesale, distribution and retail trade,
(ii) transportation,
(iii) storage,
(iv) communication,
(v) infrastructure projects including development of
industrial zones,
(vi) telecommunication ie Email /internet /electronic
information services (EIS), data communication network
services, trunk radio services, cellular mobile telephone
services, audiotex services, voice mail services, card pay
phone services, close user group for banking operations,
international satellite operations for domestic data
communications, paging service and any other
telecommunication service which is deregulated in future;
(vii) technical testing facilities,
(viii)Audio-visual services,
(ix) Rental services relating to transport equipment and
machinery;
(x) Environmental services; and
(xi) Foreign Direct Investment (FDI) in any other activity
of service sector.
Following machinery, equipment and capital goods Respective
imported for establishing wholesale/retail chain stores:- Headings
Refrigeration system, including shelves and chests.
Butcher equipment, preparation equipment.
Rotisserie equipment, preparation equipment.
Fishery equipment, preparation equipment.
Bakery equipment, preparation equipment.
High racks, self service racks, round stands.
Trolley, wire material, customer guidance.
Fork lift trucks, pallet movers.
Advertising and decoration material.
Waste re-processing systems.
Euro pallets
Merchandise security-/video control system.
Pneumatic dispatch system
Office equipment
Equipment for workshop
Antenna system
Canteen equipment
Cashier desks and chairs.
Cleaning machinery and materials.
Wrapping machinery and equipment.
Safes
Scales
EDP equipment
Telephone system
Sectional steel, reinforcement, metal sheets.
Concrete admixtures-curing-fixtures
Insulation and waterproofing materials
Doors, shutter doors, sliding doors.
Windows, sun shading.
Sky domes
Flooring materials
Paint, coating, sealing material
Suspended ceiling system.
Plaster board wall system
WC dividing wall system
Lock system
Crash barriers, traffic signs
Insulated panels for cooling chambers
Container
Dock leveling systems
Air conditioning and heating system.
Air ventilation system.
Sprinkler system.
Fire detection system.
Fire extinguishers.
Weak current system.
Intruder alarm security system.
Sewage treatment system.
Lighting arrester system.
Elevators.
Gasoline generator.
Main and secondary switchboards.
Illumination.
Off-highway dump trucks of 320 hp and above. 8704.1090
On Highway Dump Trucks of 320 HP and above imported 8704.2299
w.e.f 17th January, 2007. 8704.2390
Cement bulk semi-trailers, without prime movers. 8716.3190
Machinery and equipment imported by any other Chapters 84 and
importer. 85 excluding the
items as
specified in
Annex-C
Air Handling Units 8415.8300
Following items imported by the manufacturing sector:-
Fin tubes 7304.3100,
7304.9000
Dish heads 7326.1990,
7326.9090
Induced draught fans. 8414.5990
High pressure valves 8481.8090
Automatic valves 8481.8090
Safety valves including Non return valves 8481.4000
Control valves for steam duty. 8481.8090
Core wire of base metal in coils (for machine welding) 8311.2000
Following machinery and equipment for marble, granite
and gem stone extraction and processing industries.
Quarry winches (100 ton capacity and above. 8425.3100
Quarry winches and electric motor jacks 30 ton capacity and above. 8425.3900
Quarry crane. 8426.3000
Fork lifter 8427.9000
Excavators 8429.5900
Ultrasonic machine tools. 8456.2090
Sharpening machine. 8460.3900
All diamond saw machines, diamond tools and segments. 8464.1000
& Respective
headings
Grinding machines. 8464.2010
Polishing machines of all types and dimensions. 8464.2090 &
Respective
headings
Other machine tools for working stones 8464.9000
Pneumatic machines and tools. 8467.1100
Horizontal and Vertical pneumatic line drilling machine. Pneumatic 8467.1900
grinding machines.
Following goods imported by municipal authorities/local
bodies/cantonment boards:-
Ambulances 8702.1090
8702.9090
8703.2329
8703.2490
8703.3229
8703.3390
8703.9000.
Fire fighting vehicles. 8705.3000
Waste disposal truck 8704.2299
8704.2390
Incinerators for disposal waste management. 8417.8000
Motorized sweepers 8479.1000
Brake down lorries 8705.9000
Special purpose vehicles for the maintenance of streetlights and 8705.9000
overhead cables.
Snow ploughs 8430.2000
Road sweeping lorries 8705.9000
Fire fighting vehicles and equipment imported by town and 8705.3000 &
municipal authorities. Respective
Headings
Aircraft spares, parts, tyres, navigational equipment, Respective
accessories for maintenance and operations of aircrafts, Headings
chemicals, lubricants and paints, air tickets, aircraft
carpet, aircraft fabric, skydrol (brake fluid), laminated
sheet, aluminum alloy sheets, aluminum alloy extrusions,
aircrafts seats, tools, test equipment, life jackets, spares of
TGS vehicle, meals trolley, ball hand seal, standard units,
exterior washing liquid, air head set electronics, air head
set pneumatic and sealants.
Proprietary Formwork System for building/structures of a 7308.4000
height of 100 ft and above and its various items/
components consisting of the following, namely:-
Special hammers 8205.2000
Extraction keys. 8205.5900
Heat ventilation air conditioner 8415.8200
Following machinery and equipment relating to
broadcasting:-
Video tape recorders (VTRs), S-VHS Tape Recorders. 8521.1010
Broadcast cameras 8525.8090
Video Switcher. 8521.1090
Video/Audit Routers 8517.6290,
8525.6090
Audio Limiter/ Monitor/ Mixer equipment. 8519.8190,
8519.8990
Broadcast digital maximiser 8525.5090
Analog video distribution amplifiers. 8518.4000
SD/AES distribution amplifiers. 8518.4000
SDI monitoring/equalizing amplifiers. 8518.4000
SD/AES Multiplexers/de-multiplexers 8518.4000
Audio distribution amplifiers. 8518.4000
Video/audit converters. 8529.9090
SDI input board. 8521.1090
Amplified loud speaker 8518.4000
Under monitor displays (UMDs) 8528.5900
LCD monitors. 8528.7211
Picture tube monitors. 8528.4990
Plasma screens. 8528.7212
Broadcast video visualization/monitoring system 8528.7212
Wave form/ Vectroscope monitors. 8528.5900
Video/audio frame synchronizer. 8521.1090
Audio delay/monitoring equipment. 8528.7212,
8519.8990
Sync pulse generator. 8543.2000
Intercom system/ microphones. 8517.6990
Digital clock system. 9105.9900
Consoles, racks, patch panels, cables other installation material. 8537.1090
& Respective
Headings
Video format converters. 8521.1090
Transformers. 8504.4090
Video play out/ ingest/ preview servers. 8521.1090
Fiber optic transceivers. 8525.5090
Ethernet switch. 8517.6990
Newsroom management servers. 8521.1090
Non-Linear/Linear video editing equipment. 8521.1090
Video conferencing system (picturetel/polycom /Tandberg). 8517.1890
Audio conferencing system. 8517.1890
Satellite video phones. 8517.1810
Digital Video/audio media delivery system. 8528.7212
Studio lights. 9405.4090
On air video in & out graphic servers. 8521.1090
Virtual set system. 8521.1090
Camera tracing heads. 8529.9090
Teleprompters. 8528.5100
C/Ku Band uplink antenna equipment. 8529.1010
IF & LNBs, wave guiders, splitters. 8529.1010
High powered uplink amplifiers. 8529.1010
Up converters. 8529.1010
Uplink monitoring/control equipment. 8529.1010
MPEG 2, MPEG 4 Video Encoders. 8521.1090
Video statistical multiplexing equipment. 8521.9090
8517.6260
Modulators. 8525.5090
Satellite reception IRDs/TVROs/Decoders. 8528.7212
Video compression control & monitoring equipment. 8521.1090
Smart cards for video encryption. 8542.3900
Digital setup box (STBs) 8528.7290
Personal video recorder (PVR); Digital Video Recorder (DVR) 8521.1010
Satellite receive dish. 8529.1090
LNBs. 8529.1020
Audio video dubbing equipment. 8521.1010
Video streaming gateway. 8521.9090
DVB-H Mobile handsets for TV delivery. 8525.8090
DMB Mobile handsets for TV delivery. 8525.8090
RG 11/RG 6 cables. 8544.1190
RF connectors. 8529.9090
Toolkit for satellite dish installation. 8206.0000
Drill machine for satellite dish installation. 8467.2100
Modems for setup box. 8537.1090
Power distribution equipment, UPS, Generators. 8537.1090
8504.4010,
8502.0000
GPS/electronic compass equipment. 9014.8000
Broadcast chopper 8529.9090
Acoustics. 8529.9090
Teletext equipment. 8529.9090
Studio air conditioning. 8415.1020
Studio furniture/fixtures. 9403.6000
Studio/TV Station/Uplink tation video surveillance security 8525.8090
equipment.
Wireless camera equipment. 8525.8090
Microwave multi point video distribution equipment. 8525.6090
IP satellite news gathering equipment. 8517.6290
Still store equipment. 8521.1090
Accessories for video switching, routing, distribution, recording, 8529.9090
amplification, locking, equalizing, encryption, up linking, down
linking, encoding/decoding, multiplexing, transmission etc.
FM transmitters 8525.5010
FM antenna (broad band and tuned) 8529.1090
FM exciter 8525.5090
FM power amplifiers 8529.1090
Audio processor 8519.8990
Microphones 8518.1090
Patch bays 8519.8990
Telephone hybrids 8517.1290
Outdoor recording equipment 8521.9090
Outdoor live coverage equipment. Respective
heading
Studio transmitter link (STL) 8525.5090
Audio amplifiers 8518.4000
Following items imported by Civil Aviation Authority
(CAA) for air traffic services and training:-
Navigation equipment.
VOR, NDB, ILS Satellite based instrument landing system and/or 8526.9100
any other satellite based navigation equipment used for the
provision of air traffic services.
Surveillance Equipment
Radars and satellite based surveillance equipment like ADS (C) & 8526.1000
ADS (B) and/or any other surveillance equipment used for the
provision of air traffic services.
Rescue and Fire Fighting Equipment.
All fire fighting vehicles, operational vehicles used on air side. 8705.3000
Rescue & fire equipment including spare parts. 8424.1000
Display System
FIDS (Flight Information Display System). 8543.7000
Training equipment
All training equipment including simulators and their spare parts. 9023.0000
Calibration equipment.
All equipment being utilized for the purpose of calibration radar & 9031.8000
radio navigational aids.
Communication & Broadcast Equipment.
UHF, VHF and HF radios, ATIS and related equipment, spare parts Respective
including all satellite based communication equipment like remote headings
radio stations and data link ie VDL and CPDLC and/or any other
communication equipment used for the provision of air traffic
services."
Following machinery and equipment imported by surgical
industry.
Hand sharpening and polishing stones numerically controlled and 8460.0000
others, honing and lapping machines.
Following machinery and equipment imported by cutlery
industry:-
Surface grinding machine with cup and grinding wheel 6804.2200
Rolling machine for table cutlery 8455.2100
Forging hammer 8462.1010,
8462.1090
Friction press 8462.1010,
8462.1090
Grinding machines. 8464.2010
Polishing machines 8464.2090
Ultrasonic degreasing plant 8479.8990
Tempering machine complete unit Respective
headings
Vibrating bowel. 8479.8990
============================================================================================
INCREASE IN DUTY - SRO 567
The rate of customs duty has been increased in respect of following goods, while consolidating SRO 567(I)/2006 in the Fifth Schedule:
========================================================================================
Description PCT Old rate in New rate in
SRO 567 Fifth Schedule
========================================================================================
Input for poultry sector
Soyabean meal 2304.0000 0% 5%
Vitamin B12 (feed grade) 2309.9090 0% 5%
Vitamin H2 (Biotin) (feed grade) 2309.9090 0% 5%
Fish Feed 2309.9090 0% 5%
Poultry feed preparation 2309.9090 0% 5%
(coccidiostats)
Growth promoter premix 2309.9020 0% 5%
Vitamin premix 2309.9020 0% 5%
Choline Chloride 2309.9020 0% 5%
Mineral premix 2309.9020 0% 5%
Concenstrated Coccidiostats 2933.3990 0% 5%
Furazolidone (feed grade) 2934.9910 0% 5%
Poultry vaccines 3002.3000 0% 5%
Anticoccidal namely Amprolium, 3004.3900 0% 5%
Diaverdine, Decoquinate,
Furaltadone, Menadione,
Sodaluminium , Pyrimethamine,
Toltrazuril
Sulphadimerzine (mixture form 3004.3900 0% 5%
with any other anticoccidial)
Sulphaqunoxaline (mixture form 3004.3900 0% 5%
with any other anticoccidial)
Calf Milk Replacer(CMR) [(color 2309.9090 0% 5%
dyed)]
Cattle Feed Premix 2309.9020 0% 5%
Pure Terephthalic Acid (PTA) 2917.3610 3% 4%
Poly Ethylene Terephthalate, 3907.6010 3% 4%
Yarn grade
Poly ethylene terephthalate 3907.6020 8% 8.5%
(PET) , bottle grade
Poly Ethylene Terephthalate 3907.6090 8% 8.5%
(PET) film grade
========================================================================================
WITHDRAWAL OF CONCESSIONARY RATES - SRO 567
Concessionary rates provided in SRO 567 (I) / 2006 in respect of following goods have not been incorporated in Fifth Schedule; hence general Tariff rates will be applicable thereon:
============================================================================================
HS Code Description
============================================================================================
2811.2200 Silicon dioxide
2811.2990 Sulfur
2817.0000 Zinc oxide ; zinc peroxide
2827.2000 Calcium chloride
2921.4900 BHT
2930.2090 ZEC
2934.2000 Compounds containing in the structure of a benzothiazole ring
system (whether or not hydrogenated), not further fused
3812.1000 Prepared rubber accelerators
Input for poultry sector
1005.9000 Maize grain
2833.2990 Maganese sulphate
[2833.2940] Zinc Sulphate
2833.2500 Copper Sulphate
2833.2910 Ferrous Sulphate.
2835.2500 Dicalcium Phosphate (DCP) (Feed grade)
2835.2600 Monocalcium phosphate (MCP) (Feed grade)
2835.2600 Monodicalcium phosphate (MDCP) (Feed grade)
2922.5000 L-Threonine
2923.9010 Betaine
2936.2100 Vitamin A
2936.2200 Vitamin B1
2936.2300 Vitamin B2
2936.2400 Vitamin B3/B5
2936.2500 Vitamin B6
2936.2600 Vitamin B12
2936.2700 Vitamin C
2936.2800 Vitamin E
2936.2900 Other vitamins
2922.4100 Lysine
2923.1000 Choline
2930.4000 Methionine/ Methionine hydroxy analogue
2601.1100 Iron ores and concentrates non-agglomerated.
2710.1952 Knitting Machine Oil
2917.3500 Pathalic Anhydride
2922.4990 Na Fe EDTA (vitamin mineral premix)
3215.1910 Fluorescent ink
3507.9000 Enzymes
3701.3090 Photo Polymer and CTP Plates
3707.1000 Photo emulsion
3808.9180 Phosphatic insecticides
3913.1000 Alginate
3919.9090 BOPP packing adhesive tape in jumbo rolls having minimum 100
CM width and weight exceeding 100 kg per roll.
4004.0020 Shredded tyre scrap
5401.1000 Sewing thread (breaded thread for hand stitch)
5509.6900 Acrylic Yarn of 32 to 40 metric count.
7101.1000 Natural Pearls
7102.2100 Diamonds
7102.2900
7102.3900
7103.9100 Precious stones
7103.9900
71.04 Synthetic or reconstructed precious stones or semi-precious stones,
whether or not worked or graded but not strung, mounted or set; un-
graded synthetic or reconstructed precious or semi-precious stones,
temporarily strung for convenience of transport
7110.1100 Platinum
7110.1900
7110.2100 Palladium
7110.2900
7326.9090 Camera Stands
8518.1090 Mikes (Newman, Akg) Microphones
8518.5000 Cinema speaker and sound system
8518.2100 Loud speakers low frequency & sub woofers
8518.2100 High frequency driver units, used in conjunction low frequency
speakers
8518.5000 Power amplifiers of different power ratings
8519.8190 AVID editing
8519.8190 Fully dolby/stereo system
8519.8190 Analogue audio processors
8519.8190 Digital audio processors for DTS, with CD room drivers
8519.8190 Digital audio processor
8521.9090 Sound recording (channel mixers and cables, record, play and erase
heads)
8521.9090 Sub-titling machine
8523.2990 Magnetic tapes
9007.2000 Projector 35mm with Xenon lamps
9007.2000 Film projectors 35mm with sound heads and sound readers
8539.2990 Photographic and HMI bulbs
8539.2990 Xenon bulbs 2000 watts to 4000 watts
8539.4100 Xenon arc lamps with rectifiers/power ratings
8545.1900 Cinema Arc carbons
8716.8090 Camera Trolley
8716.8090 Camera Dolly
6704.1100 Wigs etc
7613.0010 Aluminium containers for compressed or liquefied gas
8504.3100 Transformers having a power handling capacity not exceeding 1
KVA
Surgical Sector
3810.1000 Pickling preparations for metal surface; soldering brazing or welding
powders and pastes consisting of metal and other material.
68.04 Millstones, grindstones, grinding wheels and the like, without
framework, for grinding, sharpening, polishing, trueing or cutting,
hand sharpening or polishing stones, and parts thereof, of natural
stone, of agglomerated natural or artificial abrasive, or of ceramics,
with or without parts of other materials.
6804.1000 Millstones and grindstone for milling, grinding or pulping.
6804.2100 of agglomerated synthetic or natural diamond
6804.2200 of other agglomerated abrasives or of ceramics
6804.2300 of natural stone
6804.3000 Hand sharpening or polishing stones Screws, bolts, nuts , coach
screws , screw hooks, rivets, cotters, cotter-pins, washers (including
spring washers) and similar articles, of iron or steel.
7318.1510 High tensile (DIN Grade 8.8 ASTM A325 or ASTM A 193 B7)
7318.1610 High tensile (DIN Grade 8.8 ASTM A325 or ASTM A 193 B7)
7318.2110 High tensile (DIN Grade 8.8 ASTM A325 or ASTM A 193 B7)
7403.2100 Copper-zinc base alloys (brass)
8407.1000 Aircraft engines, aero planes and other aircrafts.
8802.2000
8802.3000
8802.4000
8504.4020 Charger for Electric Battery used for two/three wheeler Electric
Scooter/Electric Bicycle
8507.8000 Chargeable Electric Battery for two/three wheeler Electric
Scooter/Electric Bicycle
9032.8990 Controller for two/three wheeler Electric Scooter/Electric Bicycle
87.02 Ambulances.
87.03
8704.2299 On Highway Dump Trucks of 320 HP and above.
8704.2390
8704.1090 Off Highway Dump Trucks of 320 HP and above.
8706.0000 Chassis fitted with engines, for the motor vehicles of headings 87.01
to 87.05.
[87.11] Vintage Motor Cycles of 500 CC and above which are older than 25
years
8901.1000 Ships and other floating crafts including tugs, survey vessels and
8901.2000 other specialised crafts purchased or bare-boat chartered by a
8901.3000 Pakistani entity and flying Pakistani flag.
8901.9000
8902.0000
8904.0000
8905.1000
8905.2000
8905.9000
8906.1000
8906.9000
8907.9000
8517.1220 Fixed wireless terminals
8701.9020 Agricultural tractor
8701.9090
8442.3000, Printing machinery and spare parts thereof
8442.4000,
8443.1100
8443.1200
8443.3990
8443.1990
8443.9100
8443.3990
3215.1190 Black Ink
3215.1990 Colour Ink
3701.3020 CTP Plates
4802.5700 Fully sensitized cheque paper weighing 40 g/m2 or more but not
more than 150 g/m2
9612.1010 Red bleed through ribbons for dot matrix printers
3215.1990 Anti-forgery security printing ink
8502.0000 Gas operating generating sets exceeding 1100 KVA
9506.6980 Shuttlecocks
Respective [(i)]Power generation plants imported by WAPDA or PEPCO through
headings its generation companies on temporary basis with a view to
subsequent exportation.
(ii) Power generation plants imported by KESC on temporary basis
with a view to subsequent exportation.
============================================================================================
Concession provided in SRO 575 now withdrawn
==============================================================================================
Description PCT heading
==============================================================================================
Agricultural Machinery
A) Land Leveling Machinery And Equipment
1) Bulldozers and angle dozers 8429.1100,
8429.1900
2) Graders and levelers 8429.2000
3) Scrappers 8429.3000
4) Bulldozer and angle dozer blades. 8431.4200
5) Bulldozers, pulled soil scrappers, capacity 20-25m3. 8429.1100
8429.1900
8429.3000
6) Laser land-levelers, hydraulically driven land levelers, land 8432.8090
planers, stone collectors (capacity 1.5-2.5m) and wind rowers
(capacity 1.5-2.5 m).
7) Survey equipment. 9015.2000,
9015.8000
(B) Tillage, Seeding And Planting Machinery And Equipment
1) Ploughs 8432.1010,
8432.1090
2) Harrows, scarifiers, cultivators including inter-row 8432.2100,
cultivators, weeders, tillers, hoes, rotary hoes and rotary tiller 8432.2910,
weeders (above 90 HP). 8432.2990
3) Seeders, planters, pneumatic planters, transplanters, vegetable 8432.3010,
seedling transplanters, paddy seeding raising equipment, 8432.3090
cane ratoners, cane planters and mechanical hand diblers.
4) Rotavators. 8432.8010
5) Para plow-sub-soiler (with vibratory mechanism) and bed 8432.8090
shapers.
6) Discs for agricultural ploughs 8432.9000
(C) Fertilizer and Plant Protection Equipment.
3) All types of sprayers (self propelled, manual, power driven, 8424.8100
ULV, tractor/trolley mountable) and electronic knapsack
sprayers excluding manual knapsack sprayers.
4) Spray nozzles assembly, spray nozzles and nozzles tips. 8424.9010
5) Herbicides applicators (including band applicators), fire band 8432.4000,
weed applicators, granular applicators, slurry spreaders, manure 8432.8090
spreader/ composite shredder.
6) Dust application machinery and equipment 8432.8090
(D) High Efficiency Irrigation and Drainage Equipment.
3) Tile drain laying equipment. 8426.4900
4) Dredger/ excavator/ dragline equipment/ back hoe trenchers; Omitted
8429.5900
5) Tractor mounted rotary ditcher or chain trencher (excluding 8430.6900
tractor).
6) Direct power rotary drilling rigs. 8430.4900
7) Canal concrete lining machine. 8430.5000
(E) Harvesting and Threshing Machinery.
4) Haymaking and bailing machinery. 8433.3000
5) Straw or fodder balers. 8433.4000
6) Combine harvesters threshers. 8433.5100
7) Root or tuber harvesting machines. 8433.5300
8) Sugarcane, potato, onion, garlic, fruit, groundnut etc., harvester/ 8433.5300,
digger; 8433.5900
9) Cotton picker, stock pullers cum shredder, rotary slusher. 8433.5900
10) Fodder/forage wagon. 8716.8090
(F) Post-harvest Handling and Processing Machinery.
1) Fodder and feed cube making machinery. 8433.4000
2) Machinery for cleaning, sorting or grading eggs, fruits or other 8433.6000
agriculture produce including Stationery/moveable seed processing
units
3) Plants and essence extractors for flowers/horticulture. 8436.8000
4) Machine for cleaning, sorting or grading seed, grain or dried 8437.1000
leguminous vegetables.
5) Rice whitener, rice polisher, rice flow meter and magnetic 8437.8000 and
separator. respective
headings
(G) Dairy, Livestock and Poultry, Machinery.
2) Milking machines. 8434.1000
3) Dairy machinery 8434.2000
4) Milk evaporator. 8419.3900
6) Cream separators. 8421.1100
7) Homogenizer. 8434.2000
10) Machinery for preparing animal feeding stuffs. 8436.1000
11) Slurry digester. 8436.8000
12) Veterinary equipment 9018.9090
13) Incubators, brooders and other poultry equipments. 8436.2100,
8436.2900
14) Evaporative Air Cooler/Cooling System. 8479.6000
15) Evaporative Cooling Pad. 8479.9010
(I) Machinery, Equipment and Other Capital Goods for
Miscellaneous Agro-Based Industries Like Milk
Processing, Fruit, Vegetable or Flowers Grading, Picking
or Processing etc.
1) Packing or wrapping machinery (including heat shrink wrapping 8422.4000
machinery).
2) Scales for continuous weighing of goods on conveyors. 8423.2000
3) Machinery for the preparation of meat or poultry. 8438.5000
4) Conveyor belt of a kind used in slaughter house. 8428.3300
9) Machinery for filling, closing, sealing or labeling bottles, canes 8422.3000
etc.
10) Presses, crushers and similar machinery used in the 8435.1010
manufacture of fruit juices.
11) Shear machinery. 8433.2000
12) Machinery used in the milling industry. 8437.8000
13) Machinery for the preparation of roots, nuts or vegetables. 8438.6000
14) Pressing and ginning machinery for cotton ginning industry. 8445.1990
8479.8990
15) Solar heating equipment. 8541.4000
(J) Horticulture and Floriculture
2) Evaporative air coolers 8479.6000
4) Battery Operated Fork Lifters (upto 3 tons) 8427.1000
7) Knives & cutting blades 8208.4000
9) Other machinery 8438.8090
12) Agricultural horticultural machinery & parts thereof 8432.0000
13) Other agricultural, horticultural, forestry or be-keeping 8436.8000
machinery.
(K) Fish or shrimp farming and seafood processing
machinery and equipment.
(1) Compressor 8414.8090
(2) Generator 8502.1130,
8502.1190,
8502.1200
(3) Condenser 8418.9990
(5) Flat freezer 8418.3000
(6) Boast freezer 8418.4000
(7) Fiber glass tubs 7019.9090
(8) Insulated plants 8418.6990
(10) Flak ice plants 8414.6990
Following items imported by Call Centers, Business
Processing Outsourcing facilities duly approved by
Telecommunication Authority.
1) UPS, inverters/converters. 8504.4010
8504.4090
2) Fax machines 8443.3260
3) Photo copiers 8443.3910
4) IP Phones 8517.1890
6) Dialers 8517.7000
7) Generator. 8502.1200
10) Multimedia projectors 8528.6110
11) Video conferencing equipment. 8525.8090
12) CCTV 8525.8010
14) PUD's 8525.8090
16) Parts, voice cards. 8517.7000
18) VAST terminals 8525.6040]
Following items imported by the local assemblers of
vehicles and companies having CNG licenses:
1) Compressors 8414.8030
2) Mass Flow CNG dispensers 8413.1100
3) Storage cylinders 7311.0000
4) CNG vehicle Cylinders. 7311.0000
5) CNG vehicle conversion kits. 8409.9191,
8409.9991
(5A) LPG Dispensers imported by a company having LPG licence. 8413.1100
Following items imported by the companies having LPG licence:-
(1) LPG pumps 8413.1990
(2) Control panels 8537.1090,
8537.2000
(3) LPG Dispensers 8413.1100
(4) LPG vehicle conversion kits. 8409.9199
A. Medical Equipment.
4) Operating Lights. 9018.9090
11) Breathing Bags. 9020.0020
12) Automatic blood cell counter. 9018.9090
C. Disposable Medical Devices
3) Burettes. 7017.9000
i. Machinery, equipment and other items required for Respective
setting up, up-gradation and expansion of hotels (3 stars Headings
and above), tourism; sporting and other recreation
services related projects as approved by the Ministry of
Tourism.
ii. Machinery and equipment for hotels (below 3 stars). Respective
Headings.
Machinery, equipment and other capital goods for Service Respective
Sectors mentioned below:- Headings
(vi) Wholesale, distribution and retail trade,
(vii) transportation,
(viii) storage,
(ix) communication,
(x) infrastructure projects including development of
industrial zones,
(vi) telecommunication ie Email/internet/electronic
information services (EIS), data communication network
services, trunk radio services, cellular mobile telephone
services, audiotex services, voice mail services, card pay
phone services, close user group for banking operations,
international satellite operations for domestic data
communications, paging service and any other
telecommunication service which is deregulated in future;
(vii) technical testing facilities,
(viii)Audio-visual services,
(ix) Rental services relating to transport equipment and
machinery;
(x) Environmental services; and
(xi) Foreign Direct Investment (FDI) in any other activity
of service sector.
Following machinery, equipment and capital goods Respective
imported for establishing wholesale/retail chain stores:- Headings
1) Refrigeration system, including shelves and chests.
2) Butcher equipment, preparation equipment.
3) Rotisserie equipment, preparation equipment.
4) Fishery equipment, preparation equipment.
5) Bakery equipment, preparation equipment.
6) High racks, self service racks, round stands.
7) Trolley, wire material, customer guidance.
8) Fork lift trucks, pallet movers.
9) Advertising and decoration material.
10) Waste re-processing systems.
11) Euro pallets
12) Merchandise security-/video control system.
13) Pneumatic dispatch system
14) Office equipment
15) Equipment for workshop
16) Antenna system
17) Canteen equipment
18) Cashier desks and chairs.
19) Cleaning machinery and materials.
20) Wrapping machinery and equipment.
21) Safes
22) Scales
23) EDP equipment
24) Telephone system
25) Sectional steel, reinforcement, metal sheets.
26) Concrete admixtures-curing-fixtures
27) Insulation and waterproofing materials
28) Doors, shutter doors, sliding doors.
29) Windows, sun shading.
30) Sky domes
31) Flooring materials
32) Paint, coating, sealing material
33) Suspended ceiling system.
34) Plaster board wall system
35) WC dividing wall system
36) Lock system
37) Crash barriers, traffic signs
38) Insulated panels for cooling chambers
39) Container
40) Dock leveling systems
41) Air conditioning and heating system.
42) Air ventilation system.
43) Sprinkler system.
44) Fire detection system.
45) Fire extinguishers.
46) Weak current system.
47) Intruder alarm security system.
48) Sewage treatment system.
49) Lighting arrester system.
50) Elevators.
51) Gasoline generator.
52) Main and secondary switchboards.
53) Illumination.
(i.) Off-highway dump trucks of 320 hp and above. 8704.1090
ii). On Highway Dump Trucks of 320 HP and above 8704.2299
imported w.e.f 17th January, 2007. 8704.2390
(iii) Cement bulk semi-trailers, without prime movers. 8716.3190
Machinery and equipment imported by any other Chapters 84 and
importer. 85 excluding the
items as
specified in
Annex-C
Air Handling Units 8415.8300
Following items imported by the manufacturing sector:-
1) Fin tubes 7304.3100,
7304.9000
2) Dish heads 7326.1990,
7326.9090
3) Induced draught fans. 8414.5990
4) High pressure valves 8481.8090
5) Automatic valves 8481.8090
6) Safety valves including Non return valves 8481.4000
7) Control valves for steam duty. 8481.8090
8) Core wire of base metal in coils (for machine welding) 8311.2000
Following machinery and equipment for marble, granite
and gem stone extraction and processing industries.
10) Quarry winches (100 ton capacity and above. 8425.3100
11) Quarry winches and electric motor jacks 30 ton capacity and 8425.3900
above.
12) Quarry crane. 8426.3000
13) Fork lifter 8427.9000
14) Excavators 8429.5900
15) Ultrasonic machine tools. 8456.2090
16) Sharpening machine. 8460.3900
17) All diamond saw machines, diamond tools and segments. 8464.1000
& Respective
headings
18) Grinding machines. 8464.2010
19) Polishing machines of all types and dimensions. 8464.2090 &
Respective
headings
20) Other machine tools for working stones 8464.9000
21) Pneumatic machines and tools. 8467.1100
22) Horizontal and Vertical pneumatic line drilling machine. 8467.1900
Pneumatic grinding machines.
Following goods imported by municipal authorities/local
bodies/cantonment boards:-
1) Ambulances 8702.1090
8702.9090
8703.2329
8703.2490
8703.3229
8703.3390
8703.9000.
2) Fire fighting vehicles. 8705.3000
3) Waste disposal truck 8704.2299
8704.2390
4) Incinerators for disposal waste management. 8417.8000
5) Motorized sweepers 8479.1000
6) Brake down lorries 8705.9000
7) Special purpose vehicles for the maintenance of streetlights and 8705.9000
overhead cables.
8) Snow ploughs 8430.2000
10[9) Road sweeping lorries 8705.9000
Fire fighting vehicles and equipment imported by town 8705.3000 &
and municipal authorities. Respective
Headings
Aircraft spares, parts, tyres, navigational equipment, Respective
accessories for maintenance and operations of aircrafts, Headings
chemicals, lubricants and paints, air tickets, aircraft
carpet, aircraft fabric, skydrol (brake fluid), laminated
sheet, aluminum alloy sheets, aluminum alloy extrusions,
aircrafts seats, tools, test equipment, life jackets, spares
of TGS vehicle, meals trolley, ball hand seal, standard
units, exterior washing liquid, air head set electronics, air
head set pneumatic and sealants.
Proprietary Formwork System for building/structures of 7308.4000
a height of 100 ft and above and its various items/
components consisting of the following, namely:-
9) Special hammers 8205.2000
10) Extraction keys. 8205.5900
Heat ventilation air conditioner 8415.8200
Following machinery and equipment relating to
broadcasting:-
1) Video tape recorders (VTRs), S-VHS Tape Recorders. 8521.1010
2) Broadcast cameras 8525.8090
3) Video Switcher. 8521.1090
4) Video/Audit Routers 8517.6290,
8525.6090
5) Audio Limiter/ Monitor/ Mixer equipment. 8519.8190,
8519.8990
6) Broadcast digital maximiser 8525.5090
7) Analog video distribution amplifiers. 8518.4000
8) SD/AES distribution amplifiers. 8518.4000
9) SDI monitoring/equalizing amplifiers. 8518.4000
10) SD/AES Multiplexers/de-multiplexers 8518.4000
11) Audio distribution amplifiers. 8518.4000
12) Video/audit converters. 8529.9090
13) SDI input board. 8521.1090
14) Amplified loud speaker 8518.4000
15) Under monitor displays (UMDs) 8528.5900
16) LCD monitors. 8528.7211
17) Picture tube monitors. 8528.4990
18) Plasma screens. 8528.7212
19) Broadcast video visualization/monitoring system 8528.7212
20) Wave form/ Vectroscope monitors. 8528.5900
21) Video/audio frame synchronizer. 8521.1090
22) Audio delay/monitoring equipment. 8528.7212,
8519.8990
23) Sync pulse generator. 8543.2000
24) Intercom system/ microphones. 8517.6990
25) Digital clock system. 9105.9900
26) Consoles, racks, patch panels, cables other installation material. 8537.1090 &
Respective
Headings
27) Video format converters. 8521.1090
28) Transformers. 8504.4090
29) Video play out/ ingest/ preview servers. 8521.1090
30) Fiber optic transceivers. 8525.5090
31) Ethernet switch. 8517.6990
34) Newsroom management servers. 8521.1090
35) Non-Linear/Linear video editing equipment. 8521.1090
39) Video conferencing system (picturetel/polycom /Tandberg). 8517.1890
40) Audio conferencing system. 8517.1890
41) Satellite video phones. 8517.1810
42) Digital Video/audio media delivery system. 8528.7212
43) Studio lights. 9405.4090
45) On air video in & out graphic servers. 8521.1090
47) Virtual set system. 8521.1090
48) Camera tracing heads. 8529.9090
49) Teleprompters. 8528.5100
50) C/Ku Band uplink antenna equipment. 8529.1010
51) IF & LNBs, wave guiders, splitters. 8529.1010
52) High powered uplink amplifiers. 8529.1010
53) Up converters. 8529.1010
54) Uplink monitoring/control equipment. 8529.1010
56) MPEG 2, MPEG 4 Video Encoders. 8521.1090
57) Video statistical multiplexing equipment. 8521.9090
8517.6260
58) Modulators. 8525.5090
59) Satellite reception IRDs/TVROs/Decoders. 8528.7212
60) Video compression control & monitoring equipment. 8521.1090
62) Smart cards for video encryption. 8542.3900
64) Digital setup box (STBs) 8528.7290
65) Personal video recorder (PVR); Digital Video Recorder (DVR) 8521.1010
67) Satellite receive dish. 8529.1090
68) LNBs. 8529.1020
70) Audio video dubbing equipment. 8521.1010
76) Video streaming gateway. 8521.9090
78) DVB-H Mobile handsets for TV delivery. 8525.8090
79) DMB Mobile handsets for TV delivery. 8525.8090
80) RG 11/RG 6 cables. 8544.1190
81) RF connectors. 8529.9090
82) Toolkit for satellite dish installation. 8206.0000
83) Drill machine for satellite dish installation. 8467.2100
85) Modems for setup box. 8537.1090
86) Power distribution equipment, UPS, Generators. 8537.1090
8504.4010,
8502.0000
88) GPS/electronic compass equipment. 9014.8000
89) Broadcast chopper 8529.9090
90) Acoustics. 8529.9090
91) Teletext equipment. 8529.9090
92) Studio air conditioning. 8415.1020
93) Studio furniture/fixtures. 9403.6000
94) Studio/TV Station/Uplink tation video surveillance security 8525.8090
equipment.
95) Wireless camera equipment. 8525.8090
96) Microwave multi point video distribution equipment. 8525.6090
97) IP satellite news gathering equipment. 8517.6290
98) Still store equipment. 8521.1090
100) Accessories for video switching, routing, distribution, 8529.9090
recording, amplification, locking, equalizing, encryption, up linking,
down linking, encoding/decoding, multiplexing, transmission etc.
101) FM transmitters 8525.5010
102) FM antenna (broad band and tuned) 8529.1090
103) FM exciter 8525.5090
104) FM power amplifiers 8529.1090
105) Audio processor 8519.8990
106) Microphones 8518.1090
107) Patch bays 8519.8990
108) Telephone hybrids 8517.1290
109) Outdoor recording equipment 8521.9090
110) Outdoor live coverage equipment. Respective
heading
111) Studio transmitter link (STL) 8525.5090
112) Audio amplifiers 8518.4000
Following items imported by Civil Aviation Authority
(CAA) for air traffic services and training:-
Navigation equipment.
VOR, NDB, ILS Satellite based instrument landing system and/or 8526.9100
any other satellite based navigation equipment used for the
provision of air traffic services.
Surveillance Equipment
Radars and satellite based surveillance equipment like ADS (C) & 8526.1000
ADS (B) and/or any other surveillance equipment used for the
provision of air traffic services.
Rescue and Fire Fighting Equipment.
All fire fighting vehicles, operational vehicles used on air side. 8705.3000
Rescue & fire equipment including spare parts. 8424.1000
Display System
FIDS (Flight Information Display System). 8543.7000
Training equipment
All training equipment including simulators and their spare parts. 9023.0000
Calibration equipment.
All equipment being utilized for the purpose of calibration radar & 9031.8000
radio navigational aids.
Communication & Broadcast Equipment.
UHF, VHF and HF radios, ATIS and related equipment, spare parts Respective
including all satellite based communication equipment like remote headings
radio stations and data link ie VDL and CPDLC and/or any other
communication equipment used for the provision of air traffic
services.".
Following machinery and equipment imported by surgical
industry.
Hand sharpening and polishing stones numerically controlled and 8460.0000
others, honing and lapping machines.
Following machinery and equipment imported by cutlery
industry:-
1) Surface grinding machine with cup and grinding wheel 6804.2200
2) Rolling machine for table cutlery 8455.2100
3) Forging hammer 8462.1010,
8462.1090
4) Friction press 8462.1010,
8462.1090
5) Grinding machines. 8464.2010
6) Polishing machines 8464.2090
7) Ultrasonic degreasing plant 8479.8990
8) Tempering machine complete unit Respective
headings
9) Vibrating bowel. 8479.8990
==============================================================================================
Following changes have been made while consolidating SRO 567(I)/2006 in the Fifth Schedule:
===============================================================================
Description PCT Old rate in New rate in
SRO 567 Fifth Schedule
===============================================================================
Input for poultry sector
Soyabean meal 2304.0000 0% 5%
Vitamin B12 (feed grade) 2309.9090 0% 5%
Vitamin H2 (Biotin) (feed grade) 2309.9090 0% 5%
Fish Feed 2309.9090 0% 5%
Poultry feed preparation 2309.9090 0% 5%
(coccidiostats)
Growth promoter premix 2309.9020 0% 5%
Vitamin premix 2309.9020 0% 5%
Choline Chloride 2309.9020 0% 5%
Mineral premix 2309.9020 0% 5%
Concenstrated Coccidiostats [2933.3990] 0% 5%
Furazolidone (feed grade) 2934.9910 0% 5%
Poultry vaccines 3002.3000 0% 5%
Anticoccidal namely Amprolium, 3004.3900 0% 5%
Diaverdine, Decoquinate,
Furaltadone, Menadione,
Sodaluminium , Pyrimethamine,
Toltrazuril
Sulphadimerzine (mixture form 3004.3900 0% 5%
with any other anticoccidial)
Sulphaqunoxaline (mixture form 3004.3900 0% 5%
with any other anticoccidial)
Calf Milk Replacer(CMR) [(color dyed)] 2309.9090 0% 5%
Cattle Feed Premix 2309.9020 0% 5%Pure terephthalic acid (PTA) 2917.3610 3% 4%
Poly ethylene terephthalate, Yarn grade 3907.6010 3% 4%
Poly ethylene terephthalate 3907.6020 8% 8.5%
(PET) , bottle grade
Poly(ethylene Terephthalate) film grade 3907.6090 8% 8.5%
================================================================================
Concession provided in SRO 567 now withdrawn
====================================================================================
HS Code Description
====================================================================================
Omitted
2811.2200 Silicon dioxide
2811.2990 Sulfur
2817.0000 Zinc oxide ; zinc peroxide
2827.2000 Calcium chloride
2921.4900 BHT
2930.2090 ZEC
2934.2000 Compounds containing in the structure of a benzothiazole ring
system (whether or not hydrogenated), not further fused
3812.1000 Prepared rubber accelerators
Input for poultry sector
1005.9000 Maize grain
2833.2990 Maganese sulphate
2833.2940 Zinc Sulphate
2833.2500 Copper Sulphate
2833.2910 Ferrous Sulphate.
2835.2500 Dicalcium Phosphate (DCP) (Feed grade)
2835.2600 Monocalcium phosphate (MCP) (Feed grade)
2835.2600 Monodicalcium phosphate (MDCP) (Feed grade)
2922.5000 L-Threonine
2923.9010 [Betaine]
2936.2100 Vitamin A
2936.2200 Vitamin B1
2936.2300 Vitamin B2
2936.2400 Vitamin B3/B5
2936.2500 Vitamin B6
2936.2600 Vitamin B12
2936.2700 Vitamin C
2936.2800 Vitamin E
2936.2900 Other vitamins
2922.4100 Lysine
2923.1000 Choline
2930.4000 Methionine/ Methionine hydroxy analogue
2601.1100 Iron ores and concentrates non-agglomerated.
2710.1952 Knitting Machine Oil
2917.3500 Pathalic Anhydride
2922.4990 Na Fe EDTA (vitamin mineral premix)
3215.1910 Fluorescent ink
3507.9000 Enzymes
3701.3090 Photo Polymer and CTP Plates
3707.1000 Photo emulsion
3808.9180 Phosphatic insecticides
3913.1000 Alginate
3919.9090 BOPP packing adhesive tape in jumbo rolls having minimum 100
CM width and weight exceeding 100 kg per roll.
4004.0020 Shredded tyre scrap
5401.1000 Sewing thread (breaded thread for hand stitch)
5509.6900 Acrylic Yarn of 32 to 40 metric count.
7101.1000 Natural Pearls
7102.2100 Diamonds
7102.2900
7102.3900
7103.9100
7103.9900 Precious stones
71.04 Synthetic or reconstructed precious stones or
semi-precious stones, whether or not worked or graded
but not strung, mounted or set; un-graded synthetic or
reconstructed precious or semi-precious stones, temporarily
strung for convenience of transport
7110.1100 Platinum
7110.1900
7110.2100 Palladium
7110.2900
7326.9090 Camera Stands
8518.1090 Mikes (Newman, Akg) Microphones
8518.5000 Cinema speaker and sound system
8518.2100 Loud speakers low frequency & sub woofers
8518.2100 High frequency driver units, used in conjunction low frequency
speakers
8518.5000 Power amplifiers of different power ratings
8519.8190 AVID editing
8519.8190 Fully dolby/stereo system
8519.8190 Analogue audio processors
8519.8190 Digital audio processors for DTS, with CD room drivers
8519.8190 Digital audio processor
8521.9090 Sound recording (channel mixers and cables, record, play
and erase heads)
8521.9090 Sub-titling machine
8523.2990 Magnetic tapes
9007.2000 Projector 35mm with Xenon lamps
9007.2000 Film projectors 35mm with sound heads and sound readers
8539.2990 Photographic and HMI bulbs
8539.2990 Xenon bulbs 2000 watts to 4000 watts
8539.4100 Xenon arc lamps with rectifiers/power ratings
8545.1900 Cinema Arc carbons
8716.8090 Camera Trolley
8716.8090 Camera Dolly
6704.1100 Wigs etc
7613.0010 Aluminium containers for compressed or liquefied gas
8504.3100 Transformers having a power handling capacity not exceeding
1 KVA
Surgical Sector
3810.1000 Pickling preparations for metal surface; soldering brazing or welding
powders and pastes consisting of metal and other material.
68.04 Millstones, grindstones, grinding wheels and the like, without
framework, for grinding, sharpening, polishing, trueing or cutting,
hand sharpening or polishing stones, and parts thereof, of natural
stone, of agglomerated natural or artificial abrasive, or of ceramics,
with or without parts of other materials.
6804.1000 Millstones and grindstone for milling, grinding or pulping.
6804.2100 of agglomerated synthetic or natural diamond
6804.2200 of other agglomerated abrasives or of ceramics
6804.2300 of natural stone
6804.3000 Hand sharpening or polishing stones Screws, bolts, nuts , coach
screws , screw hooks, rivets, cotters, cotter-pins, washers (including
spring washers) and similar articles, of iron or steel.
7318.1510 High tensile (DIN Grade 8.8 ASTM A325 or ASTM A 193 B7)
7318.1610 High tensile (DIN Grade 8.8 ASTM A325 or ASTM A 193 B7)
7318.2110 High tensile (DIN Grade 8.8 ASTM A325 or ASTM A 193 B7)
7403.2100 Copper-zinc base alloys (brass)
8407.1000 Aircraft engines, aero planes and other aircrafts.
8802.2000
8802.3000
8802.4000
8504.4020 Charger for Electric Battery used for two/three wheeler Electric
Scooter/Electric Bicycle
8507.8000 Chargeable Electric Battery for two/three wheeler Electric
Scooter/Electric Bicycle
9032.8990 Controller for two/three wheeler Electric Scooter/Electric Bicycle
87.02 Ambulances.
87.03
8704.2299 On Highway Dump Trucks of 320 HP and above.
8704.2390
8704.1090 Off Highway Dump Trucks of 320 HP and above.
8706.0000 Chassis fitted with engines, for the motor vehicles
of headings 87.01to 87.05.
87.11 Vintage Motor Cycles of 500 CC and above which are older
than 25 years
8901.1000 Ships and other floating crafts including tugs, survey
8901.2000 vessels and other specialised crafts purchased or
8901.3000 bare-boat chartered by a Pakistani entity and flying
8901.9000 Pakistani flag.
8902.0000
8904.0000
8905.1000
8905.2000
8905.9000
8906.1000
8906.9000
8907.9000
8517.1220 Fixed wireless terminals
8701.9020 Agricultural tractor
8701.9090
8442.3000 Printing machinery and spare parts thereof
8442.4000
8443.1100
8443.1200
8443.3990
8443.1990
8443.9100
8443.3990
3215.1190 Black Ink
3215.1990 Colour Ink
3701.3020 CTP Plates
4802.5700 Fully sensitized cheque paper weighing 40 g/m2
or more but not
more than 150 g/m2
9612.1010 Red bleed through ribbons for dot matrix printers
3215.1990 Anti-forgery security printing ink
8502.0000 Gas operating generating sets exceeding 1100 KVA
9506.6980 Shuttlecocks
Respective [(i)]Power generation plants imported by WAPDA or
Headings PEPCO through its generation companies on temporary
basis with a view to subsequent exportation.
[(ii) Power generation plants imported by KESC on
temporary basis with a view to subsequent exportation.]
====================================================================================
REDUCTION IN CUSTOMS DUTY
Maximum general tariff rate has been reduced to 25 per cent. In addition, customs duty on import of following items have been decreased as under:
=========================================================================================
PCT Description Old New
Heading Rate Rate
=========================================================================================
85.04 Electrical transformers, static converters (for
example, rectifiers) and inductors.
8504.4010 Un-interrupted power supply (UPS) of power rating
upto 1.5 kVA 20 15
27.13 Petroleum coke, petroleum bitumen and
other residues of petroleum oils or of oils
obtained from bituminous minerals
2713.1100 - Not calcined 5 1
85.23 Discs, tapes, solid- state non- volatile storage
devices, "smart cards" and other media for
the recording of sound or of other
phenomena, whether or not recorded,
including matrices and masters for the
production of discs, but excluding products of
Chapter 37.
8523.4110 - Compact disc (CD) 20 10
8523.4120 - Digital versatile discs (DVD) 20 10
8523.4190 - Other 20 10
8523.4920 - Discs for laser reading system containing audio material
8523.4930 - Discs for laser reading system containing images
or video material 20 10
8523.4990 - Other 20 1027.10 Petroleum oils and oils obtained from
bituminous minerals, other than crude;
preparations not elsewhere specified or
Included, containing by weight 70 % or more
of petroleum oils or of oils obtained from
bituminous minerals, these oils being the
basic constituents of the preparations;
waste oils.
2710.1995 - Liquid paraffin 15 10
85.17 Telephone sets, including telephones for
cellular networks or for other wireless
networks; other apparatus for the
transmission or reception of voice, images or
other data, including apparatus for
communication in a wired or wireless
network (such as a local or wide area
network), other than transmission or
reception apparatus of heading
84.43, 85.25, 85.27 or 85.28
8517.1230 -Satellite mobile phone, whether or not functional
on cellular networks 25 10
11.08 Starches; inulin.
1108.1200 - Maize (corn) starch* 20 15
=========================================================================================
INCREASE IN CUSTOMS DUTY
Minimum general tariff rate of zero per cent (0%) on certain goods has been increased to 1 per cent. In addition, customs duty on import of following good has been increased.
=====================================================================================
PCT Description Old New
Heading Rate Rate
=====================================================================================
72.25 Flat- rolled products of other alloy steel,
of a width of 600 mm or more 0-5 10
72.26 Flat- rolled products of other alloy steel,
of a width of less than 600 mm 5 10
85.02 Electric generating sets and rotary
converters.
- Generating sets with compression-
ignition internal combustion piston engines
(diesel or semi- diesel engines):
8502.1390 Other - output exceeding 1100KVA 0 5
32.04 Synthetic organic colouring matter, whether
or not chemically defined; preparations as
specified in Note 3 to this Chapter based on
synthetic organic colouring matter; synthetic
organic products of a kind used as fluorescent
brightening agents or as luminophores,
whether or not chemically defined.
3204.1100 -Disperse dyes and preparations based thereon 10 15
3204.1590 -Other 5 15
3204.1910 -Dyes, sulphur 5 15
3204.1990 - Dyes, synthetic 5 15
21.06 Food preparations not elsewhere specified or included
2106.9030 -Flavouring powders for preparation of food 10 20
27.10 Petroleum oils and oils obtained from
bituminous minerals, other than crude;
preparations not elsewhere specified or
included, containing by weight 70 % or more
of petroleum oils or of oils obtained from
bituminous minerals, these oils being the
basic constituents of the preparations; waste oils.
2710.1996 -White oil 5 10
84.21 Centrifuges, including centrifugal dryers;
filtering or purifying machinery and
apparatus, for liquids or gases.
8421.1900 -Other 5 10
11.08 Starches; inulin
1108.1300 -Potato starch 10 15
32.06 Other colouring matter; preparations as
specified in Note 3 to this Chapter, other than
those of heading 32.03, 32.04 or 32.05;
inorganic products of a kind used as
luminophores, whether or not chemically defined.
3206.4990 -Other 5 10
85.17 Telephone sets, including telephones for
cellular networks or for other wireless
networks; other apparatus for the
transmission or reception of voice, images or
other data, including apparatus for
communication in a wired or wireless
network (such as a local or wide area
network), other than transmission or
reception apparatus of heading
84.43, 85.25, 85.27 or 85.28.
8517.6210 -Voice fequency telegraphy 5 10
8517.6220 -Modems 5 10
8517.6230 -High bit rate digital hierarchy system (SDH) 5 10
8517.6240 -Digital loop carrier system (DLC) 5 10
8517.6250 -Synchronous digital hierarchy system (SDH) 5 10
8517.6260 -Multiplexers, statistical multiplexers 5 10
8517.6910 -ISDN system 5 10
8517.6920 -ISDN terminal adapters 5 10
8517.6940 -Subscriber end equipment 5 10
8517.6950 -Set top boxes for gaining access to internet 5 10
8517.6960 -Attachements for telephones 5 10
8517.6990 -Other 5 10
85.23 Discs, tapes, solid- state non- volatile storage
devices, "smart cards" and other media for
the recording of sound or of other
phenomena, whether or not recorded,
including matrices and masters for the
production of discs, but excluding products of
Chapter 37.
8523.4910 - containing software 5 10
85.04 Electrical transformers, static converters (for
example, rectifiers) and inductors.
8504.4090 -Other 10 15
85.25 Transmission apparatus for radio-
broadcasting or television, whether or not
incorporating reception apparatus or sound
recording or reproducing apparatus;
television cameras, digital cameras and video
camera recorders.
8525.6010 -Blue tooth whether or not capable Of connecting 5 10
to an automatic data processing machine
8525.6020 -Radio paging apparatus 5 10
8525.6060 -Vehicle tracking system 5 10
8525.6070 -Modems 5 10
85.27 Reception apparatus for radio- broadcasting,
whether or not combined, in the same
housing, with sound recording or
reproducing apparatus or a clock.
8527.9910 -Modems 5 10
=====================================================================================
GAS INFRASTRUCTURE DEVELOPMENT CESS
Gas Infrastructure Development Cess per MMBTU of natural gas consumption enhanced by Rs 200 for Independent Power Plant, WAPDA / KESC / GENCOs and captive Power Producers and levied on CNG and Industrial consumers at the rate Rs 300 per MMBTU.
INCOME SUPPORT LEVY Income Support Levy was introduced by way of Income Support Levy Act, 2013 in the Finance Act, 2013 on ownership of certain movable assets. The matter was challenged at various judicial forums. Through Finance Bill 2014, the Income Supply Levy Act, 2013 is proposed to be repealed.
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