A BILL: to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2015, and to amend certain laws: WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2015, and to amend certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:
1. Short title, extent and commencement. - (1) This Act may be called the Finance Act, 2015.
(2) It extends to the whole of Pakistan.
(3) It shall, unless otherwise provided, come into force on the first day of July, 2015.
2. Amendments of Act IV of 1969. - In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely:-
(1) in section 19,-
(a) for sub-section (1), the following shall be substituted, namely:-
"(1) The Federal Government pursuant to the approval of the Economic Coordination Committee of Cabinet, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in the emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in duties, development of backward areas and implementation of bilateral and multilateral agreements, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, may, by notification in the official Gazette, exempt any goods imported into, or exported from, Pakistan or into or from any specified port or station or area therein, from the whole or any part of the customs-duties chargeable thereon and may remit fine, penalty, charge or any other amount recoverable under this Act."; and (b) after sub-section (3), the following new sub-sections shall be added, namely:-
"(4) The Federal Government shall place before the National Assembly all notifications issued under this section in a financial year.
(5) Any notification issued after the promulgation of the Finance Act, 2015 under sub-section (1) shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued.";
(2) section 20 shall be omitted;
(3) in section 32, in sub-section (3), in the proviso, for the words "one hundred", the words "twenty thousand" shall be substituted;
(4) in section 79, in sub-section (1),-
(a) after the word "warehousing", the words "or transhipment" shall be inserted; and
(b) in clause (b), after the second proviso, the following Explanation shall be added, namely:-
"Explanation.- For the purposes of this clause, the assessment and paying of duty, taxes and other charges in respect of transhipment shall be at the port of destination.";
(5) in section 121, in sub-section (1), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that at customs-station where the Customs Computerized System is operational, the system may automatically authorize transhipment to other customs-station subject to risk selectivity criteria.";
(6) in section 123, after sub-section (2), the following shall be added, namely:- "Explanation.- For the purpose of transhipment of LCL goods, the customs-station of first entry shall be the customs-station where the goods are de-consolidated.";
(7) in section 156, in sub-section (1), in the Table,-
(a) S.No 1 shall be re-numbered as S.No.1(i) of that Table and thereafter the following new clause and the entries relating thereto in columns (1), (2) and (3) shall be added, namely:- "(ii) If any person such person shall General"; and be liable to a requirement of placement of invoice and packing list inside the import container or consignment,
(b) against serial number 64, in column (1), for the existing entry, the following shall be substituted:-
"If any person contravenes any rule or condition relating to section 128 or section 129, or makes an untrue declaration relating to transit goods or illegally removes or conceals any transit goods,";
(8) the amendments set out in the First Schedule to this Act shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969); and
(9) the Fifth Schedule to the Customs Act, 1969 (IV of 1969), shall be substituted in the manner specified in the Second Schedule of this Act.
3. Amendments of the Sales Tax Act, 1990. - In the Sales Tax Act, 1990, the following further amendments shall be made, namely:-
(1) in section 2,-
(a) for clause (1), the following shall be substituted, namely:-
"(1) "active taxpayer" means a registered person who does not fall in any of the following categories, namely:-
(a) who is blacklisted or whose registration is suspended or is blocked in terms of section 21;
(b) who fails to file the return under section 26 by the due date for two consecutive tax periods;
(c) who fails to file an Income Tax return under section 114 or statement under section 115, of the Income Tax Ordinance, 2001(XLlX of 2001), by the due date; and
(d) who fails to file two consecutive monthly or an annual withholding tax statement under section 165 of the Income Tax Ordinance, 2001;
(1A) "Appellate Tribunal" means the Appellate Tribunal Inland Revenue established under section 130 of the Income Tax Ordinance, 2001 (XLIX of 2001);";
(b) in clause (5AB), for the word "seven", the word "eight" shall be substituted;
(c) in clause (28), the comma, words and figures ", and his total turnover per annum shall be taken into account for the purposes of registration under section 14" shall be omitted; and
(d) in clause (33),-
(a) in sub-clause (b), the word "and" at the end shall be omitted; and
(b) in sub-clause (c), for the colon at the end, a semi-colon and the word "and" shall be substituted, and thereafter the following new clause shall be added, namely:- "(d) in case of manufacture of goods belonging to another person, the transfer or delivery of such goods to the owner or to a person nominated by him:";
(e) after clause (46), the following new clause shall be added, namely:- "(46A) "whistleblower" means whistleblower as defined in section 72D of the Sales Tax Act, 1990";
(2) in section 3,-
(a) in sub-section (1A), for the word "one", the word "two" shall be substituted; and
(b) in sub-section (2), for clause (b), the following shall be substituted, namely:-
"(b) the Federal Government may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, declare that in respect of any taxable goods, the tax shall be charged, collected and paid in such manner and at such higher or lower rate or rates as may be specified in the said notification.";
(3) in section 6, in sub-section (1), after the word "enforcement", the words "including recovery" shall be inserted;
(4) in section 7, in sub-section (2), in clause (ii), after the figure "79", the expression ", section 81" shall be inserted;
(5) in section 8, in sub-section (1),-
(a) in clause (h),
(a) after the word "excluding", the words "pre-fabricated buildings and" shall be inserted; and
(b) the word "and" at the end shall be omitted;
(b) in clause (i), for the full stop at the end a semi-colon shall be substituted and thereafter the following new clauses shall be added, namely:-
"(j) services in respect of which input tax adjustment is barred under the respective provincial sales tax law;
(k) import or purchase of agricultural machinery or equipment subject to sales tax at the rate of 7% under Eighth Schedule to this Act; and
(l) from the date to be notified by the Board, such goods and services which, at the time of filing of return by the buyer, have not been declared by the supplier in his return.";
(6) in section 8A, after the word "unpaid", occurring for the first time, the expression ", of which the burden to prove shall be on the department" shall be inserted;
(7) in section 13,-
(a) in sub-section (2),-
(i) in clause (a), after the word "may", the commas and the words ", pursuant to the approval of the Economic Coordination Committee of Cabinet, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in taxes, development of backward areas and implementation of bilateral and multilateral agreements" shall be inserted and thereafter the word "and" at the end shall be omitted; and
(ii) clause (b) shall be omitted;
(b) in sub-section (3), the expression "or, as the case may be, order made under clause (b) of that sub-section" shall be omitted;
(c) after already omitted sub-section (5), the following new subsections shall be added, namely:-
"(6) The Federal Government shall place before the National Assembly all notifications issued under this section in a financial year.
(7) Any notification issued under sub-section (2), shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued.";
(8) for section 14, the following shall be substituted, namely:-
"14. Registration.-(1) Every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely:-
(a) a manufacturer who is not running a cottage industry;
(b) a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3;
(c) an importer;
(d) an exporter who intends to obtain sales tax refund against his zero-rated supplies;
(e) a wholesaler, dealer or distributor; and
(f) a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act;
(2) Persons not engaged in making of taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration.
(3) The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe.";
(9) after section 21, the following new section shall be inserted, namely:-
"21A. Active taxpayers list.-The Board shall have the power to maintain active taxpayers list in the manner as may be prescribed by rules and such rules may provide for the restrictions and limitations to be imposed on a person who ceases to be an active taxpayer.";
(10) in section 25, in sub-section (3), the words, figures and comma "or section
36, as the case may be" shall be omitted;
(11) in section 32A, -
(a) in the heading, for the words "Special Audit by Chartered Accountants or Cost Accountants", the words "Audit by Special Audit Panels" shall be substituted;
(b) for sub-section (1) the following shall be substituted, namely:-
"(1) The Board may appoint as many special audit panels as may be necessary, comprising two or more members from the following, -
(a) an officer or officers of Inland Revenue;
(b) a firm of chartered accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961);
(c) a firm of cost and management accountants as defined under the Cost and Management Accountants Act, 1966 (XIV of 1966); or
(d) any other person as directed by the Board, to conduct audit of a registered person or persons, including audit of refund claims and forensic audit and the scope of such audit shall be determined by the Board or the Commissioner Inland Revenue on a case-to-case basis. In addition, the Board may, where it considers appropriate, also get such audit conducted jointly with similar audits being conducted by provincial administrations of sales tax on services.";
(c) in sub-section (2), for the word "an auditor", the words "special audit panel" shall be substituted;
(d) in sub-section (3), for the words "An auditor", the words "Every member of special audit panel" shall be substituted; and
(e) after sub-section (3), amended as aforesaid, the following new subsections shall be added, namely:-
"(4) Each special audit panel shall be headed by a chairman who shall be an officer of Inland Revenue.
(5) If any one member of the special audit panel, other than the chairman, is absent from conducting an audit, the proceedings of the audit may continue and the audit conducted by the special audit panel shall not be invalid or be called in question merely on the ground of such absence.
(6) The Board may prescribe rules in respect of constitution, procedure and working of special audit panel.";
(12) in section 33, in the Table, in column (1), -
(a) against serial number 1, in column (2), in the proviso, for the word "fifteen", the word "ten" shall be substituted; and
(b) against serial number 5, in column (2), in the first proviso, for the word "fifteen", the word "ten" shall be substituted;
(13) in section 40C, -
(a) in sub-section (2), after the word "labels", the word and comma "barcodes," shall be inserted; and
(b) after sub-section (2), amended as aforesaid, the following new subsection shall be added, namely:-
"(3) Such tax stamps, banderoles, stickers, labels, barcodes etc., shall be acquired by the registered person referred to in subsection (2) from a licensee appointed by the Board for the purpose, against price approved by the Board, which shall include the cost of equipment installed by such licensee in the premises of the said registered person.";
(14) in section 45A, in sub-section (1), after the word "motion", the words ", or otherwise," shall be inserted;
(15) after section 56, the following new sections shall be inserted, namely:-
"56A. Agreement for the exchange of information.- (1) The Federal Government may enter into bilateral or multilateral agreements with provincial governments or with governments of foreign countries for the exchange of information, including electronic exchange of information, with respect to sales tax imposed under this Act or any other law of Pakistan and under the corresponding laws of such countries and may, by notification in the official Gazette, make such provisions as may be necessary for implementing such agreements.
(2) The provisions of section 107 of the Income Tax Ordinance, 2001 (XLIX of 2001) shall, mutatis mutandis, apply to the provisions of this section.
56B. Disclosure of information by a public servant.- (1) Any information acquired under any provision of this Act or in pursuance of a bilateral or multilateral agreement or tax information exchange agreement shall be confidential and no public servant shall disclose any such information, except as provided under section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001).
(2) The provisions of section 216 of Income Tax Ordinance, 2001 (XLIX of 2001), shall, mutatis mutandis, apply to the provisions of this section.
56C. Prize schemes to promote tax culture.- The Board may prescribe prize schemes to encourage the general public to make purchases only from registered persons issuing tax invoices.";
(16) after section 72C, a new section 72D shall be added, namely:-
"72D. Reward to whistleblowers.- (1) The Board may sanction reward to whistleblowers in cases of concealment or evasion of tax, tax fraud, corruption or misconduct providing credible information leading to such detection of tax fraud;
(2) The Board may, by notification in the official Gazette, prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section for whistleblowers;
(3) The claim for reward by the whistleblower shall be rejected if-
(a) the information provided is of no value;
(b) the Board already had the information;
(c) the information was available in public records; or
(d) no collection of taxes is made from the information provided from which the Board can pay the reward;
(4) For the purpose of this section, "whistleblower" means a person who reports concealment or evasion of sales tax and tax fraud leading to detection or collection of taxes, fraud, corruption or misconduct, to the competent authority having power to take action against the person or a sales tax authority committing fraud, corruption, misconduct, or involved in concealment or evasion of taxes.";
(17) in the Fifth Schedule, in column (1), -
(a) against serial number 6, in column (2), the words "to the Export Processing Zones and" shall be omitted;
(b) after serial number 6, amended as aforesaid, the following new serial number and the entry relating thereto in column (2) shall be inserted, namely:-
"6A. Supplies of locally manufactured plant and machinery of the following specifications, to manufacturers in the Export Processing Zone, subject to the conditions, restrictions and procedure given below, namely:-
(i) Plant and machinery, operated by power of any description, as is used for the manufacture or production of goods by that manufacturer;
(ii) Apparatus, appliances and equipments specifically meant or adapted for use in conjunction with the machinery specified in clause (i);
(iii) Mechanical and electrical control and transmission gear, meant or adapted for use in conjunction with machinery specified in clause (i); and
(iv) Parts of machinery as specified in clauses (i), (ii) and
(iii) identifiable for use in or with such machinery.
Conditions, restrictions and procedures:-
(a) the supplier of the machinery is registered under the Act;
(b) proper bill of export is filed showing registration number;
(c) the purchaser of the machinery is an established manufacturer located in the Export Processing Zone and holds a certificate from the Export Processing Zone Authority to that effect;
(d) the purchaser submits an indemnity bond in proper form to the satisfaction of the concerned Commissioner Inland Revenue that the machinery shall, without prior permission from the said Commissioner, not be sold, transferred or otherwise moved out of the Export Processing Zone before a period of five years from the date of entry into the Zone;
(e) if the machinery is brought to tariff area of Pakistan, sales tax shall be charged on the value assessed on the bill of entry; and
(f) breach of any of the conditions specified herein shall attract legal action under the relevant provisions of the Act, besides recovery of the amount of sales tax along with default surcharge and penalties involved.";
(c) against serial number 9, in column (2), the words "who makes local supplies of both taxable and exempt goods" shall be omitted;
(d) against serial number 12, in column (2), in clause (ix), the words "including flavored milk" and the word and figure "and 0402.9900" shall be omitted; and thereafter clauses (x) to (xvi) shall be omitted;
(18) in the Sixth Schedule, -
(a) in Table-1,in column (1), -
(i) against serial number 19, in column (3), the comma and figure "1006.1010," shall be omitted;
(ii) against serial number 20, in column (3), for the figure "1209.1000", the figures and comma "1006.1010, 1209.1000" shall be substituted;
(iii) serial numbers 28, 39 and 56 and entries relating thereto in columns (2) and (3) shall be omitted;
(iv) for serial numbers 73 to 80 and the entries relating thereto in columns (2) and (3), the following serial numbers and the entries relating thereto shall be substituted, namely:-
========================================================
"73. Milk 04.01
73A. Milk and cream, concentrated or 04.01 and
containing added sugar or other 04.02
sweetening matter, excluding that
sold in retail packing under a
brand name
74. Flavored milk, excluding that sold 0402.9900
in retail packing under a brand
name
75. Yogurt, excluding that sold in 0403.1000
retail packing under a brand
name
76. Whey, excluding that sold in retail 04.04
packing under a brand name
77. Butter, excluding that sold in 0405.1000
retail packing under a brand
name
78. Desi ghee, excluding that sold in 0405.9000
retail packing under a brand
name
79. Cheese, excluding that sold in 0406.1010
retail packing under a brand
name
80. Processed cheese not grated or 0406.3000";
powdered, excluding that sold in
retail packing under a brand
name
========================================================
(v) against serial number 105, in column (2), after the word "Schedule", the words "or Fifth Schedule" shall be inserted;
(vi) against serial number 114,-
(A) in column (2), in clause (1), after the word "equipment", the words and comma "consisting of plastic covering and mulch film, anti-insect net and shade net" shall be inserted; and
(B) in column (3), for the figures and comma "8430.3100, 8430.3900", the figures and commas "3920.1000, 3926.9099, 5608.1900, 5608.9000" shall be substituted;
(vii) after serial number 116 and the entries relating thereto in columns (2) and (3), the following new serial numbers and entries relating thereto in columns (1), (2) and (3) shall be added, namely:-
=======================================================
"117 Appliances for colostomy 3006.9100
118 Colostomy and urostomy bags 3926.9050
119 Tubular day lighting devices 8539.3930
(TDDs)
120 Diagnostic kits or equipment, 3822.0000
namely:-
HIV Kits
4C Es Trionyx
5C Cell control Lnormal
Bovine precision multi sera
Pregnancy test
DNA SSP DRB Generic IC
Reticulocyte count (control) retic
C Control
Kit for vitamin B12 estimation
Ferritin kit
HEV (Hepatitis E virus)
ID-DA Cell
Urine Analysis Strips
Albumin beg
Cratinin sysi
Ring
Detektiion cups
ISE Standard
Alkaline phosphatase (Alb)
Bilirubin kit
HDL Cholesterol
Ck creatinin kinase (mb)
Ck nac
Glulcose kit
Ammonia Modular
Lac
Ldh kit (lactate dehydrogenase
kit)
Urea uv kit
Ua plus
Tina quant
Crp control
Aslo tin
Proteins
Lipids
HDL/LDL cholesterol
Protein kit
U
Control Sera
Pac
Control
HCV
UIBC (Unsaturated iron binding
capacity)
U/CSF
Inorganic Phosphorus kit
Kit amplicon kit (for PCR)
Ige
Lc hsv
Oligo
NA/K/CL
Hcy
Standard [or calibrated]
Hla B27
Liss Coombs
Typhoid kit
HCV amp
Urine test strips
Strips for sugar test
Blood glucose test strips
Kits for automatic cell separator
for collection of platelets
Elisa or Eclia kit
PCR kits
Immunoblast (western blot test).
I.C.T. (Immunochromatographic
kit)
CBC Reagent (For hematology
analyzer) Complete blood count
reagent
121 Blood Bag CPDA-1 with blood Respective
transfusion set pack in aluminum headings
foil with set.
122 Urine drainage bags Respective
headings
123 Aircraft, whether imported or 8802.2000,
acquired on wet or dry lease 8802.3000,
8802.4000
124 Maintenance kits for use in Respective
trainer aircrafts of PCT headings headings
8802.2000 and 8802.3000
125 Spare parts for use in aircrafts, Respective
trainer aircrafts or simulators headings
126 Machinery, equipment and tools Respective
for setting up maintenance, headings
repair and overhaul (MRO)
workshop by MRO company
recognized by Aviation Division
127 Operational tools, machinery, Respective
equipment and furniture and headings
fixtures on one-time basis for
setting up Greenfield airports by
a company authorized by
Aviation Division
128 Aviation simulators imported by Respective
airline company recognized by headings";
Aviation Division
=======================================================
(b) in Table-2, in column (1), -
(a) serial numbers 13 and 14 and entries relating thereto in columns (2) and (3) shall be omitted;
(b) after serial number 16 and entries relating thereto in columns
(2) and (3), the following new serial numbers and entries relating thereto in column (1), (2) and (3) shall be added, namely;-
========================================================
"17. Raw and pickled hides and skins, 41.01,
wet blue hides and skins 41.02,
41.03,
4104.1000,
4105.1000,
4106.2100,
4106.3000,
4106.9000
18. Supplies made by manufacturers of Respective
marble and granite having Annual headings
turnover less than five million
rupees even if their annual utility bill
is than eight hundred more
thousand rupees
19 Bricks (up to 30th June, 2018) 6901.1000
20 Crushed stone (up to 30th June, 2517.1000";
2018)
========================================================
(c) in Table-3, in the Annexure, in column (1), serial numbers 10 and 16 and entries relating thereto in columns (2), (3) and (4) shall be omitted;
(19) in the Eighth Schedule, -
(a) in Table-1, in column (1), -
(i) against serial No. 1, in column (4), for the figure "5%", the figure "10%" shall be substituted; serial number 3, and entries relating thereto in columns (2), (3) , (4) and (5) shall be omitted; against serial numbers 4 and 6, in column (4), for the figure "5%", the figure "10%" shall be substituted; and after serial number 6 and the entries relating thereto in columns (2), (3), (4) and (5), amended as aforesaid, the following new serial numbers and entries relating thereto in columns (1), (2), (3), (4) and (5) shall be inserted; namely:-
=============================================================================
"7. Flavoured milk 0402.9900 10% Sold in retail
packing under
a brand name
8. Yogurt 0403.1000 10% Sold in retail
packing under
a brand name
9. Cheese 0406.1010 10% Sold in retail
Packing under
a brand name
10. Butter 0405.1000 10% Sold in retail
Packing under
a brand name
11. Cream 04.01 and 10% Sold in retail
04.02 Packing under
a brand name
12. Desi ghee 0405.9000 10% Sold in retail
Packing under
a brand name
13. Whey 04.04 10% Sold in retail
packing under
a brand name
14. Milk and cream, 0402.1000 10% Sold in retail
concentrated and Packing under
added sugar or other a brand name
sweetening matter
15. Poultry feed, cattle 2301.2090, 5%
feed, and their 2305.0000,
ingredients except 2306.2000,
soya bean meal of 2306.3000,
PCT heading 2306.4100,
2304.0000 and oil- 2306.5000,
cake of cottonseed 2309.9010,
falling under PCT 2309.9020,
heading 2306.1000 2309.9090,
2936.2100,
2936.2200,
2936.2300,
2936.2400,
2936.2500,
2936.2600,
2936.2700,
2936.2800,
and
2306.4900
(Rape
Seed
Meal),
2308.9000
(Guar
Meal),
2303.1000
(Corn
Gluton
Feed/Meal)
,
2303.1000
(Residues
of starch
manufactur
e and
similar
residues),
3507.9000
(Enzymes-
other),
2302.1000
(Maize
Bran),
2302.2000
(Rice
Bran),
2302.3000
(Wheat
Bran),
2302.4000
(Other
Cereals),
2302.5000
(Bran of
Leguminou
s Plants),
2306.7000
(Oil- cake
and other
solid
residues of
Maize
(corn)
germ),
2306.4900
(Sesame
Cake),
2306.9000
(Sesame
Meal/other
Meal),
2842.1000
(Double or
complex
silicates,
including
aluminosili
cates
whether or
not
chemically
defined),
2301.2010
(Fish
Meal),
0505.9000
(Poultry by
product
Meal),
and the
following
items only
of Feed
Grade:
2827.6000
(Potassium
Lodide),
2833.2990
(Manganese
Sulphate),
2833.2600
(Zinc
Sulphate),
2817.4000
(Zinc
Oxide),
2833.2500
(Copper
Sulphate),
2833.2910
(Ferrous
Sulphate),
2915.5000
(Propionic
acid, its
salts and
esters),
2930.4000
(DL
Methionine
),
2930.4000
(Methionin
e Hydroxy
Analogue
(liquid)),
2922.4100
(Lysine
Monohydro
Chloride
/sulphate),
2923.2000
(Lecithins),
2923.9000
(Betafin),
2922.4290
(Arganine),
2934.9910
(Furazolido
ne),
2922.5000
(Threonine
),
2835.2600
(Mono
Calcium
Phosphate)
,
2835.2500
(Di
Calcium
Phosphate)
, and
2835.2600
(Mono Di
Calcium
Phosphate)
16. Incinerators of 8417.8000, 5%
disposal of waste 8430.2000
management, and
motorized sweepers 8479.8990
and snow ploughs
17. Re-importation of 99.18 5% Subject to
foreign origin goods similar
which were conditions as
temporarily exported are envisaged
out of Pakistan for the
purposes of
customs duty
under the
Customs
Act,1969, and
taxable value
shall be the
value
determined
under PCT
heading 99.18
of the said Act
increased by
customs duty
payable
18. Reclaimed lead Respective 5% If supplied to
headings
recognized
manufacturers
of lead and
lead batteries
19. Waste paper 47.07 5%
20. Plant, machinery, Respective 5% The
headings Alternative
equipment and
Energy
specific items used
Development
in production of bio- Board
(AEDB),
diesel
Islamabad
shall certify in
the prescribed
manner and
format as per
Annex-B, as
given in the
Sixth
Schedule, that
the imported
goods are
bonafide
project
requirement.
The goods
shall not be
sold or
otherwise
disposed of
within a period
of five years of
their import
except with
the prior
approval of
the FBR and
payment of
customs
duties and
taxes leviable
at the time of
import
21. Rapeseed, 1205.0000, 16% On import by
sunflower seed and 1206.0000 solvent
canola seed extraction
industries
22. Soya bean seed 1201.1000 6% On import by
solvent
extraction
industries,
subject to the
condition that
no refund of
input tax shall
be
admissible";
23. Secondhand and 6309.0000 5%
worn clothing or
footwear
25. Agricultural tractors 8701.9020 10%
26. Tillage and seed 7%
bed preparation
equipment:
(i) Rotavator 8432.8010
(ii) Cultivator 8432.2910
(iii) Ridger 8432.8090
(iv) Sub soiler 8432.3090
(v) Rotary 8432.8090
slasher
(vi) Chisel plow 8432.1010
(vii) Ditcher 8432.1090
(viii) Border disc 8432.2990
(ix) Disc harrow 8432.2100
(x) Bar harrow 8432.2990
(xi) Mould board 8432.1090
plow
(xii) Tractor rear 8430.6900
or front blade
(xiii) Land leveller 8430.6900
or land planer
(xiv) Rotary tiller 8432.8090
(xv) Disc plow 8432.1090
(xvi) Soil-scrapper 8432.8090
(xvii) K.R.Karundi 8432.8090
(xviii) Tractor 8701.9020
mounted
trancher
(xix) Land leveler 8430.6900
27. Seeding or planting 7%
equipment:
(i) Seed-cum- 8432.3010
fertilizer drill
(wheat, rice
barley, etc.)
(ii) Cotton or maize 8432.3090
planter with
fertilizer
attachment
(iii) Potato planter 8432.3090
(iv) Fertilizer or 8432.4000
manure
spreader or
broadcaster
(v) Rice 8432.3090
transplanter
(vi) Canola or 8432.3010
sunflower drill
(vii) Sugarcane 8432.3090
planter
28. Irrigation, drainage 7%
and agro-chemical 8421.2100,
application 8421.9990
equipment: 8424.2010
(i) Tubewells 8424.2010
filters or 8424.2010
strainers 8424.2010
(ii) Knapsack 8424.2010
sprayers
(iii) Granular
applicator
(iv) Boom or field
sprayers
(v) Self propelled
sprayers
(vi) Orchard
sprayer
29. (i) Harvesting, 7%
threshing and 8433.5200
storage 8433.5200
equipment: 8433.5900
(ii) Wheat
thresher 8433.5300
8433.5200
(iii) Maize or
groundnut 8433.5900
8433.4000
thresher or
8433.5900
sheller
8433.5900
(iv) Groundnut
8433.5900
digger
8433.5900
(v) Potato digger
8433.5200
or harvester
8433.5200
(vi) Sunflower
8716.8090
thresher
8433.5900
(vii) Post hole
8433.5100
digger
8433.5900
(viii) Straw balers
(ix) Fodder rake
(x) Wheat or rice
reaper
(xi) Chaff or
fodder cutter
(xii) Cotton picker
(xiii) Onion or
garlic
harvester
(xiv) Sugar
harvester
(xv) Tractor trolley
or forage
wagon
(xvi) Reaping
machines
(xvii) Combined
harvesters
(xviii) Pruner/shears
30 Post-harvest handling and 7%
processing & miscellaneous
machinery:
(i) Vegetables 8437.1000
and fruits
cleaning and
sorting or
grading
equipment
(ii) Fodder and
feed cube 8433.4000
maker
equipment
; and
=============================================================================
(b) in Table-2,-
(i) in the preamble, after the words "five percent", the commas
and words ", except goods mentioned in serial numbers 1, 5
and 6 of the Annexure which shall be charged at the rate of ten percent," shall be inserted; and
(ii) in the Annexure, in column (1), serial numbers 3 and 7 and entries relating thereto in columns (2), (3) and (4) shall be omitted; and
(20) in the Ninth Schedule, in the Table, in column (1), against serial number 2, in columns (3) and (4), -
(a) for the figure "150", the figure "300" shall be substituted;
(b) for the figure "250", the figure "500" shall be substituted; and
(c) for the figure "500", the figure "1000" shall be substituted.
4. Amendment of Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001).- In the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001), the following further amendments shall be made, namely:-
(1) in section 3,-
(a) in sub-section (1), for the words "rate of sixteen per cent" the words "rates specified in column (4) of the Schedule to this Ordinance" shall be substituted;
(b) in sub-section (2), after the words "specified in", the words brackets and figure "column (2) of" shall be inserted; and
(2) for the Schedule, the following shall be substituted, namely:-
"THE SCHEDULE [See section 3(2)]
==========================================================================================
S. Description PCT Heading, if Rate of Tax
No. applicable
==========================================================================================
(1) (2) (3) (4)
==========================================================================================
1 Services provided or rendered by hotels, 9801.1000 Sixteen per
motels, guest houses, marriage halls and 9801.3000 cent
lawns (by whatever name called) including 9801.4000
"pandal" and "shamiana" services, clubs 9801.5000
including race clubs, and caterers. 9801.6000
2 Advertisement on television and radio, 9802.1000 and Sixteen per
excluding advertisements- 9802.2000 cent
(a) sponsored by an agency of the Federal
or Provincial Government for health
education;
(b) sponsored by the Population Welfare
Division relating to educational promotion
campaign;
(c) financed out of funds provided by a
Government under grant-in-aid agreement;
and
(d) conveying public service messages, if
telecast on television by the World Wide
Fund for Nature (WWF) or United Nations
Children''s Fund (UNICEF)
3 Services provided by persons authorized 9805.2000 Sixteen per
to transact business on behalf of others- 9805.4000 and cent
(a) stevedore; 9805.8000
(b) customs agents; and
(c) ship chandlers.
4 Courier services and cargo services by 9808.0000 Sixteen per
road provided by courier companies; 9804.9000 cent
5 Construction services, excluding: 9824.0000 Sixteen per
(i) construction projects (industrial and and cent
commercial) of the value (excluding actual 9814.2000
and documented cost of land) not
exceeding Rs 50 million per annum.
(ii) the cases where sales tax is
otherwise paid as property developers or
promoters.
(iii) Government civil works including
Cantonment Boards.
(iv) construction of industrial zones,
consular buildings and other
organizations exempt from income tax.
(v) construction work under
international tenders against foreign
grants-in-aid.
(vi) Residential construction projects where
the covered area does not exceed 10,000
square feet for houses and 20,000 square
feet for apartments
6 Services provided by property developers 9807.0000 Rs 100 per
and promoters (including allied services) and square yard for
excluding the actual purchase value or respective sub- land
documented cost of land. headings of development,
heading 98.14 and
Rs 50 per
square feet for
building
construction
7 Services provided by persons engaged in 9809.0000 Sixteen
contractual execution of work, excluding: per cent
(i) annual total value of the contractual
works or supplies does not exceed Rs 50
million;
(ii) the contract involving printing or
supplies of books.
8 Services provided for personal care by 9810.0000 Sixteen
beauty parlours, clinics and slimming 9821.4000 and per cent
clinics, body massage centres, pedicure 9821.5000
centres; including cosmetic and plastic
surgery by such parlours/clinics, but
excluding:
(i) annual turnover does not exceed Rs 3.6
million; or
(ii) the facility of air-conditioning is not
installed or available in the premises.
9 Management consultancy services 9815.4000, Sixteen
9819.9300 per cent
10 Services provided by freight forwarding 9805.3000, Sixteen
per cent
agents, and packers and movers. 9819.1400 or Rs 400 per
bill of lading,
whichever is
higher
11 Services provided by software or IT-based 9815.6000 Sixteen
system development consultants. per cent
12 Services provided by technical, scientific 9815.5000 Sixteen
and engineering consultants per cent
13 Services provided by other consultants 9815.9000 Sixteen
including but not limited to human resource 9818.3000 per cent
and personnel development services; 9818.2000
market research services and
credit rating services.
14 Services provided by tour operators and 9805.5100 Sixteen per cent
travel agents including all their allied 9805.5000
services or facilities (other than Hajj and 9803.9000
Umrah)
15 Manpower recruitment agents including 9805.6000 Sixteen per cent
labour and manpower supplies.
16 Services provided by security agencies. 9818.1000 Sixteen per cent
17 Services provided by advertising agents 9805.7000 Sixteen per cent
18 Share transfer or depository agents 9805.9000 Sixteen per cent
including services provided through
manual or electronic book-entry system
used to record and maintain securities and
to register the transfer of shares, securities
and derivatives.
19 Business support services. 9805.9200 Sixteen per cent
20 Services provided by fashion designers, 9819.6000 Sixteen per cent
whether relating to textile, leather, jewellery
or other product regimes, including allied
services, marketing, packing, delivery and
display, etc.
21 Services provided by architects, town 9814.1000 Sixteen per cent
planners and interior decorators. 9814.9000
22 Services provided in respect of rent-a-car. 9819.3000 Sixteen per cent
23 Services provided by specialized 98.20 Sixteen per cent
workshops or undertakings (auto-
workshops; workshops for industrial
machinery, construction and earth- moving
machinery or other special purpose
machinery etc; workshops for electric or
electronic equipments or appliances etc.
including computer hardware; car washing
or similar service stations and other
workshops).
24 Services provided for specified purposes 98.22 Sixteen per cent
including fumigation services, maintenance
and repair (including building and
equipment maintenance and repair
including after sale services) or cleaning
services, janitorial services, dredging or de-
silting services and other similar services
etc.
25 Services provided by underwriters, 9819.1100, Sixteen per cent
indenters, commission agents including 9819.1200,
brokers (other than stock) and auctioneers 9819.1300
and
9819.9100
26 Services provided by laboratories 98.17 Sixteen per cent
other than services relating to pathological
or diagnostic tests for patients.
27 Services provided by health clubs, gyms, 9821.1000 Sixteen per cent
physical fitness centres, indoor sports and and
games centres and body or sauna 9821.2000
massage centres 9821.4000
28 Services provided by laundries and dry 9811.0000 Sixteen per cent
cleaners.
29 Services provided by cable TV operators. 9819.9000 Sixteen per cent
Technical analysis and testing services 9819.9400 Sixteen per cent
30 Services provided by TV or radio program -- Sixteen per cent
producers or production houses.
31 Transportation through pipeline and conduit -- Sixteen per cent
services.
32 fund and asset (including investment) -- Sixteen per cent
management services.
33 Services provided by inland port operators -- Sixteen per cent
(including airports and dry ports) and allied
services provided at ports and services
provided by terminal operators including
services in respect of public bonded
warehouses, excluding the amounts
received by way of fee under any law or by-
law.
34 Technical inspection and certification -- Sixteen per cent
services and quality control (standards''
certification) services
35 Erection, commissioning and installation -- Sixteen per cent
services.
36 Event management services -- Sixteen per cent
37 Valuation services (including competency -- Sixteen per cent
and eligibility testing services),
38 Exhibition or convention services -- Sixteen per cent
39 Services provided in respect of mining of -- Sixteen per cent
minerals, oil & gas including related
surveys and allied activities
40 Services provided by property dealers and -- Sixteen per cent
realtors.
41 Call centres. -- Eighteen and a
half per cent
42 Services provided by car/automobile -- Sixteen per
dealers. cent";.
==========================================================================================
5. .Amendment of Ordinance, XLIX of 2001.- In the Income Tax Ordinance, 2001 (XLIX of 2001), the following further amendments shall be made, namely:-
(1) in section 2,-
(a) after clause (13A), the following new clause shall be inserted, namely:-
(13AA) "consumer goods" means goods that are consumed by the end consumer rather than used in the production of another good;";
(b) after clause (17D) following new clause shall be inserted, namely:- "Developmental REIT Scheme" means Developmental REIT Scheme as defined under the Real Estate Investment Trust Regulations, 2015;
(c)
(c) after clause (22), the following new clause shall be inserted, namely:-
"(22A) "fast moving consumer goods" means consumer goods which are supplied in retail marketing as per daily demand of a consumer;";
(d) after clause (28), the following new clause shall be inserted, namely:-
"(28A) "imputable income" in relation to an amount subject to final tax means the income which would have resulted in the same tax, had this amount not been subject to final tax;";
(e) in clause (29), for the word and figure "and 236M" a comma, word and figures ", 236M and 236N" shall be substituted;
(f) after clause (42), the following new clause shall be inserted, namely:-
"(42A) "PMEX" means Pakistan Mercantile Exchange Limited a futures commodity exchange company incorporated under the Companies Ordinance, 1984 (XLVII of 1984) and is licensed and regulated by the Securities and Exchange Commission of Pakistan;"
(g) for clause (47A), the following shall be substituted, namely:-
"(47A) "REIT Scheme" means a REIT Scheme as defined in the Real Estate Investment Trust Regulations 2015;";
(h) in clause (47B),
(i) for the letters "REITMC" the letters "RMC" shall be substituted;
(ii) for the figure "2008" the figure "2015" shall be substituted;
(j) after clause (47B), the following new clauses shall be inserted, namely:-
(47C) "Rental REIT Scheme" means a Rental REIT Scheme as defined under the Real Estate Investment Trust Regulations, 2015;";
(k) in clause (59A), in sub-clause (i), for the word "twenty-five", the word "fifty" shall be substituted; and
(1) after clause (74), the following new clause shall be added, namely:- "(75) "whistleblower" means whistleblower as defined in section 227B;
(2) after section 4, the following new section shall be inserted, namely:-
"4B. Super tax for rehabilitation of temporarily displaced persons.-(1) A super tax shall be imposed for rehabilitation of temporarily displaced persons, for tax year 2015, at the rates specified in Division IIA of Part I of the First Schedule, on income of every person specified in the said Division.
(2) For the purposes of this section, "income" shall be the sum of the following:-
(i) profit on debt, dividend, capital gains, brokerage and commission;
(ii) taxable income under section (9) of this Ordinance;
(iii) imputable income as defined in clause (28A) of section 2; and
(iv) income computed under Fourth, Fifth, Seventh and Eighth Schedule.
(3) The super tax payable under sub-section (1) shall be paid, collected and deposited on the date and in the manner as specified in sub-section
(1) of section 137 and all provisions of Chapter X of the Ordinance shall apply.
(4) Where the super tax is not paid by a person liable to pay it, the Commissioner shall by an order in writing, determine the Super tax payable, and shall serve upon the person, a notice of demand specifying the super tax payable and within the time specified under section 137 of the Ordinance.
(5) Where the super tax is not paid by a person liable to pay it, the Commissioner shall recover the super tax payable under sub-section (1) and the provisions of Part IV,X, XI and XII of Chapter X and Part I of Chapter XI of the Ordinance shall, so far as may be, apply to the collection of super tax as these apply to the collection of tax under the Ordinance.
(6) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.";
(3) after section 5, the following new section shall be inserted, namely:-
"5A. Tax on undistributed reserves.- (1) Subject to this Ordinance, a tax shall be imposed at the rate of ten percent, on every public company other than a scheduled bank or a modaraba, that derives profits for a tax year but does not distribute cash dividends within six months of the end of the said tax year or distributes dividends to such an extent that its reserves, after such distribution, are in excess of hundred percent of its paid up capital, so much of its reserves as exceed hundred per cent of its paid up capital shall be treated as income of the said company:
Provided that for tax year 2015, cash dividends may be distributed before the due date mentioned in sub-section (2) of section 118, for filing of return for tax year 2015.
(2) The provisions of sub-section (1) shall not apply to a company in which not less than fifty percent shares are held by the Government.
(3) For the purpose of this section, ''reserve'' includes amounts set-aside out of revenue or other surpluses excluding capital reserves, share premium reserves and reserves required to be created under any law, rules or regulations.";
(4) after section 7, the following new section shall be inserted, namely:-
"7A. Tax on shipping of a resident person.- (1) In the case of any resident person engaged in the business of shipping, a presumptive income tax shall be charged in the following manner, namely:-
(a) ships and all floating crafts including tugs, dredgers, survey vessels and other specialized craft purchased or bare-boat chartered and flying Pakistan flag shall pay tonnage tax of an amount equivalent to one US $ per gross registered tonnage per annum; and
(b) ships, vessels and all floating crafts including tugs, dredgers, survey vessels and other specialized craft not registered in Pakistan and hired under any charter other than bare-boat charter shall pay tonnage tax of an amount equivalent to fifteen US cents per ton of gross registered tonnage per chartered voyage provided that such tax shall not exceed one US $ per ton of gross registered tonnage per annum:
Explanation.- For the purpose of this section, the expression "equivalent amount" means the rupee equivalent of a US dollar according to the exchange rate prevalent on the first day of December in the case of a company and the first day of September in other cases in the relevant assessment year.
(2) The provisions of this section shall not be applicable after 30th June, 2020.";
(5) after section 7A, amended as aforesaid, the following new section shall be added, namely,-
"7B. Tax on profit on debt.- (1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division IIIA of Part I of the First Schedule, on every person who receives a profit on debt from any person mentioned in clause (a) to (d) of sub-section (1) of section 151.
(2) The tax imposed under sub-section (1) on a person who receives a profit on debt shall be computed by applying the relevant rate of tax to the gross amount of the profit on debt.
(3) This section shall not apply to a profit on debt that is exempt from tax under this Ordinance."
(6) in section 12, in sub-section (2), in clause (a),-
(a) the colon at the end shall be omitted; and
(b) the proviso shall be omitted;
(7) in section 15A, in sub-section (1), for clause (h), the following shall be substituted, namely:-
"(h) any expenditure, not exceeding six per cent of the rent chargeable to tax in respect of the property for the year computed before any deduction allowed under this section, paid or payable by the person in the year wholly and exclusively for the purpose of deriving rent chargeable to tax under the head, "Income from Property" including administration and collection charges;";
(8) in section 37A, in sub-section (1), the words "held for a period of less than a year" shall be omitted;
(9) in section 53;-
(a) in sub-section (2), after the word "time", occurring for the second time, the commas and words "pursuant to the approval of the Economic Coordination Committee of Cabinet, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in taxes, development of backward areas and implementation of bilateral and multilateral agreements" shall be inserted;
(b) after sub-section (3), the following new sub-section shall be added, namely:-
"(4) Any notification issued after the promulgation of Finance Act, 2015, under sub-section (2) shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued";
(10) in section 62, in sub-section (2), in clause (c), after the word "one", the words "and a half" shall be inserted;
(11) section 64 shall be omitted and thereafter the following new sections shall be inserted, namely:-
"64A. Deductible allowance for profit on debt. - (1) Every individual shall be entitled to a deductible allowance for the amount of any profit or share in rent and share in appreciation for value of house paid by the individual in a tax year on a loan by a scheduled bank or non-banking finance institution regulated by the Securities and Exchange Commission of Pakistan or advanced by Government or the Local Government, Provincial Government or a statutory body or a public company listed on a registered stock exchange in Pakistan where the individual utilizes the loan for the construction of a new house or the acquisition of a house.
(2) The amount of an individual''s deductible allowance allowed under sub-section (1) for a tax year shall not exceed fifty percent of taxable income or one million rupees, whichever is lower.
(3) Any allowance or part of an allowance under this section for a tax year that is not able to be deducted for the year shall not be carried forward to a subsequent tax year.
64B. Tax credit for employment generation by manufacturers.- (1) Where a taxpayer being a company formed for establishing and operating a new manufacturing unit sets up a new manufacturing unit between 1st day of July, 2015 and 30th of June, 2018, it shall be given a tax credit for a period of ten years.
(2) The tax credit under sub-section (1) for a tax year shall be equal to one percent of the tax payable for every fifty employees registered with The Employees Old Age Benefits Institution and the Employees Social Security Institutions of Provincial Governments during the tax year, subject to a maximum of ten percent of the tax payable.
(3) Tax credit under this section shall be admissible where-
(a) the company is incorporated and manufacturing unit is setup between the first day of July, 2015 and 30th day of June, 2018, both days inclusive;
(b) employs more than fifty employees in a tax year registered with The Employees Old Age Benefits Institution and the Employees Social Security Institutions of Provincial Governments;
(c) manufacturing unit is managed by a company formed for operating the said manufacturing unit and registered under the Companies Ordinance, 1984 (XLVII of 1984) and having its registered office in Pakistan; and
(d) the manufacturing unit is not established by the splitting up or reconstruction or reconstitution of an undertaking already in existence or by transfer of machinery or plant from an undertaking established in Pakistan at any time before 1st July 2015.
(4) Where any credit is allowed under this section and subsequently it is discovered, on the basis of documents or otherwise, by the Commissioner that any of the conditions specified in this section were not fulfilled, the credit originally allowed shall be deemed to have been wrongly allowed and the Commissioner may, notwithstanding anything contained in this Ordinance, re-compute the tax payable by the taxpayer for the relevant year and the provisions of this Ordinance shall, so far as may be, apply accordingly.
(5) For the purposes of this section a manufacturing unit shall be treated to have been setup on the date on which the manufacturing unit is ready to go into production, whether trial production or commercial production.";
(12) in section 65, after sub-section (5), the following new sub-section shall be added, namely:-
"(6) Where the person is entitled to a tax credit under section 65B, 65D or 65E, provisions of clause (d) of sub-section (2) of section 169 and clause (d) of sub-section (1) of section 113 shall not apply.";
(13) in section 65C, in sub-section (1), for the word "fifteen", the word, "twenty" shall be substituted;
(14) in section 65E, in sub-section (5), for the words, brackets and figure "in respect of the tax year in which the plant or machinery referred to in subsection (1) is installed and for the subsequent four years" the commas and words ", for a period of five years beginning from the date of setting up or commencement of commercial production from the new plant or expansion project, whichever is later" shall be substituted;
(15) in section 94, in sub-section (2), the word "resident" shall be omitted;
(16) in section 100C,-
(a) in sub-section (1), before the word "Non-profit" the words "The income of" shall be inserted; and
(b) in sub-section (2),
(i) after the word "Persons" the word "and incomes" shall be inserted; and
(ii) in clause (c), the word and hyphen "sub-" shall be omitted;
(17) in section (107),-
(a) for sub-section (1), the following shall be substituted, namely:-
"(1) The Federal Government may enter into an agreement, bilateral or multilateral with the government or governments of foreign countries or tax jurisdictions for the avoidance of double taxation and the prevention of fiscal evasion and exchange of information including automatic exchange of information with respect to taxes on income imposed under this Ordinance or any other law for the time being in force and under the corresponding laws in force in that country, and may, by notification in the official Gazette make such provisions as may be necessary for implementing the agreement."; and
(b) after sub-section (1), the following new sub-sections shall be inserted, namely:-
"(1A) Notwithstanding anything contained in any other law to the contrary, the Board shall have the powers to obtain and collect information when solicited by another country under a tax treaty, a tax information exchange agreement, a multilateral convention, an inter-governmental agreement, a similar arrangement or mechanism.
(1B) Notwithstanding the provisions of the Freedom of Information Ordinance, 2002 (XCVI of 2002), any information received or supplied, and any concomitant communication or correspondence made, under a tax treaty, a tax information exchange agreement, a multilateral convention, a similar arrangement or mechanism, shall be confidential subject to subsection (3) of section 216.";
(18) in section 113A, after sub-section (2), the following sub-section shall be added, namely:-
"(3) This section shall not have effect till 30th June, 2018"
(19) in section 113B, for the expression "at the rates as the Federal Government may notify in the official Gazette" the words "at the rate of two per cent of the value of land notified by any authority for the purpose of stamp duty" shall be substituted;
(20) in section 114, in sub-section (6), in the proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided further that the condition specified in clause (ba) shall not apply if revised return is filed within 60 days of filing of return.";
(21) in section 121, in sub-section (1), in clause (d), after for the word "or " appearing for the first time the expression "a special audit panel appointed under sub-section (11) of section 177 or" shall be substituted;
(22) in section 128, after sub-section (1A), the following new sub-section shall be inserted, namely:-
"(1AA) The Commissioner (Appeals), after affording opportunity of being heard to the Commissioner against whose order appeal has been made, may stay the recovery of such tax for a further period of thirty days, provided that the order on appeal shall be passed within the said period of thirty days."
(23) in section 137, in sub-section (2),
(a) for the word "fifteen" the word "thirty" shall be substituted;
(b) in the first proviso, for the word "sixty", the word, "forty-five" shall be substituted; and
(c) in the second proviso, for the word "sixty", the word, "forty-five" shall be substituted;
(24) in section 147, for sub-section (4A), the following shall be substituted, namely:-
"(4A) Any taxpayer who is required to make payment of advance tax in accordance with sub-section (4), shall estimate the tax payable for the relevant tax year, at any time before the second installment is due. In case the tax payable is likely to be more than the amount that the taxpayer is required to pay under sub-section
(4) , the taxpayer shall furnish to the Commissioner on or before the due date of the second quarter an estimate of the amount of tax payable by the taxpayer and thereafter pay fifty per cent of such amount by the due date of the second quarter of the tax year after making adjustment for the amount (if any) already paid in terms of sub-section (4). The remaining fifty per cent of the estimate shall be paid after the second quarter in two equal installments payable by the due date of the third and fourth quarter of the tax year.";
(25) in section 148, sub-section (2) shall be omitted;
(26) after section 148, the following new section shall be inserted, namely:-
"148A. Tax on local purchase of cooking oil or vegetable ghee by certain persons.- (1)The manufacturers of cooking oil or vegetable
ghee, or both, shall be chargeable to tax at the rate of two percent on purchase of locally produced edible oil.
(2) The tax payable under sub-section (1) shall be final tax in respect of income accruing from locally produced edible oil.";
(27) in section 151, for sub-section (3), the following shall be substituted, namely:-
"(3) Tax deductible under this section shall be a final tax on the profit on debt arising to a taxpayer, except where:
(a) taxpayer is a company; or
(b) profit on debt is taxable under section 5A.";
(28) in section 152, after sub-section (4), the following new sub-section shall be inserted; namely:-
" (4A) The Commissioner may, on application made by the recipient of a payment referred to in sub-section (2A) and after making such inquiry as the Commissioner thinks fit, may allow in cases where the tax deductable under sub-section (2A) is adjustable, by order in writing, any person to make the payment, without deduction of tax or deduction of tax at a reduced rate.";
(29) in section 153, in sub-section (3), in the proviso,
(a) for clause (b), the following clause shall be substituted, namely:-
"(b) tax deductible on transactions referred to in clause (b) of sub-section (1) shall be,-
(i) adjustable, with effect from tax year 2009, if payments are received by a company; and
(ii) a minimum tax, if payments are received by a person other than a company;"
(b) in clause (c), for the full stop, at the end, a semicolon and the word "and" shall be substituted and thereafter the following new clause shall be added, namely:" (d) tax deducted under clause (c) of sub-section (1) in respect of a sportsperson shall be final tax with effect from tax year 2013.";
(30) in section 154, after sub-section (4), the following new sub-section shall be added, namely:-
"(5) The provisions of sub-section (4) shall not apply to a person who irrevocably opts not to be subject to final taxation:
Provided that this option shall be exercised at the time of filing of return under section 114:
Provided further that the tax deducted under this sub-section shall be minimum tax."
(31) in section 159, sub-sections (3), (4) and (5) shall be omitted;
(32) in section 161, in sub-section (1B), for the word "eighteen" the word "twelve" shall be substituted;
(33) after section 165A, the following new section shall be inserted, namely:- "165B. Furnishing of information by financial institutions including banks. - (1) Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act, 1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and any regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), on the subject every financial institution shall make arrangements to provide information regarding non-resident Persons to the Board in the prescribed form and manner for the purpose of automatic exchange of information under bilateral agreement or multilateral convention.
(2) Subject to section 216, all information received under this section shall be used only for tax and related purposes and kept confidential.";
(34) in section 169, in sub-section (1),-
a) after the word "collected" the words "or paid" shall be inserted; and
b) in clause (a), after the figure "148", the comma and figure ", 148A" shall be inserted;
(35) in section 171, in sub-section (1), for the word "fifteen" the words "KIBOR plus 0.5 per cent" shall be substituted;
(36) in section 176,
(a) in sub-section (1), for clause (a), the following new clause shall be substituted, namely:-
"(a) to furnish to the Commissioner or an authorised officer, any information relevant to any tax leviable under this Ordinance or to fulfill any obligation under any agreement with foreign government or governments or tax jurisdiction, as specified in the notice; or"; and
(b) after sub-section (1), the following new sub-section shall be added, namely:-
"(1A) A special audit panel appointed under sub-section (11) of section 177, for any tax year, may, with the prior approval of the Commissioner concerned, enter the business premises of a taxpayer, to obtain any information, require production of any record, on which the required information is stored and examine it within such premises and such panel may if specifically delegated by the Commissioner, also exercise the powers as provided in sub-section (4).";
(37) in section 177, after sub-section (10), the following new sub-sections shall be added, namely:-
"(11) The Board may appoint as many special audit panels as
may be necessary, comprising two or more members from the following:-
(a) an officer or officers of Inland Revenue;
(b) a firm of Chartered Accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961);
(c) a firm of Cost and Management Accountants as defined under the Cost and Management Accountants Act, 1966 (XIV of 1966); or
(d) any other person as directed by the Board, to conduct an audit, including a forensic audit, of the income tax affairs of any person or classes of persons and the scope of such audit shall be as determined by the Board or the Commissioner on case to case basis.
(12) Special audit panel shall be headed by a Chairman who shall be an officer of Inland Revenue.
(13) Powers under sections 175 and 176 for the purposes of conducting an audit under sub-section (11), shall only be exercised by an officer or officers of Inland Revenue, who are member or members of the special audit panel, and authorized by the Commissioner.
(14) Notwithstanding anything contained in sub-sections (2) and
(6) , where a person fails to produce before the Commissioner or a special audit panel under sub-section (11) to conduct an audit, any accounts, documents and records, required to be maintained under section 174 or any other relevant document, electronically kept record, electronic machine or any other evidence that may be required by the Commissioner or the panel, the Commissioner may proceed to make best judgment assessment under section 121 of this Ordinance and the assessment treated to have been made on the basis of return or revised return filed by the taxpayer shall be of no legal effect.
(15) If any one member of the special audit panel, other than the Chairman, is absent from conducting an audit, the proceedings of the audit may continue, and the audit conducted by the special audit panel shall not be invalid or be called in question merely on the ground of such absence.
(16) Functions performed by an officer or officers of Inland Revenue as members of the special audit Panel, for conducting audit, shall be treated to have been performed by special audit panel.
(17) The Board may prescribe the mode and manner of constitution, procedure and working of the special audit panel.";
(38) in section 181A, in sub-section (3) for the colon at the end a full stop shall be substituted and the proviso thereafter shall be omitted and thereafter the following new sub-section shall be inserted, namely:-
"(4) From tax year 2015 and onwards, in case of individuals having Computerized National Identity Card (CNIC) issued by the National Database and Registration Authority, CNIC shall be used as National Tax Number.";
(39) in section 182, in sub-section (1), in the Table, in column (1),-
(a) against S.No (1A), in column (3), for the word "fifty", the word "ten" shall be substituted;
(b) against S.No. (IAA), in column (3), for the expression "Rs 100 for each day of default.", the expression "0.1% of the taxable income per week or Rs 20,000, whichever is higher." shall be substituted;
(40) in section 195, in sub-section (3), for the expression "Sub-section (3) of section 187" the expression "Entry against S.No 10 in column (2) of the Table in sub-section (1) of section 182" shall be substituted;
(41) in section 205, for the figure "18" wherever occurring, the figure "12" shall be substituted;
(42) in section 207, in sub-section (1), after clause (g), following new clause (ga) shall be inserted, namely:-
"(ga) special audit panel;";
(43) in section 210, for sub-section (1B), the following sub-section shall be substituted, namely:-
"(1B) The Commissioner may, by an order in writing, delegate to a special audit panel appointed under sub-section (11) of section 177, or to a firm of chartered accountants or a firm of Cost and Management Accountants appointed by the Board or the Commissioner to conduct an audit of person under section 177, all or any of the powers or functions to conduct an audit under this Ordinance.";
(44) in section 211, in sub-section (1), after the word "Revenue" the words, brackets and figures "or by a special audit panel appointed under subsection (11) of section 177" shall be inserted;
(45) after section 214C, the following new section shall be inserted, namely:- "214D. Automatic selection for audit.- (1) A person registered as retailer under rule (4) or rule (6) of the Sales Tax Special Procedure Rules, 2007 who does not fulfill the parameters mentioned in sub-clauses
(a) to (e) of sub-section (3) shall be automatically selected for audit of income tax affairs for that tax year.
(2) Audit of Income Tax affairs of persons automatically selected under sub-section (1) shall be conducted as per procedure given in section 177 and all the provisions of the Ordinance, except the first proviso to subsection (1) of section 177, shall apply accordingly.
(3) The provisions of sections 177 and 214C for a tax year shall not apply to a person registered as retailer under rule (4) or rule (6) of the Sales Tax Special Procedure Rules, 2007 subject to the conditions that-
(a) name of the person registered under rule (4) of the Sales Tax Special Procedure Rules, 2007 appears in the sales tax active taxpayers'' list ;
(b) complete return of income within the meaning of sub-section
(2) of section 114 has been filed within the date it was required to be furnished as mentioned in section 118 including the date extended by the Board from time to time;
(c) the tax payable under sub-section (1) of section 137 has been paid;
(d) two percent tax on turnover under section 113 has been paid by a person registered under rule (6) of the Sales Tax Special Procedure Rules, 2007 who files a return below taxable limit and who in the preceding tax year had either not filed return or had declared income below taxable limit; and
(e) twenty five percent higher tax than the previous tax year has been paid by a person registered under rule (6) of the Sales Tax Special Procedure Rules, 2007 who had declared taxable income in the return for immediately preceding tax year.
(4) This section shall have effect from the date appointed by the Board through notification in official gazette";
(46) after section 227A, the following new section shall be inserted, namely:-
"227B. Reward to whistleblowers.- (1) The Board may sanction reward to whistleblowers in cases of concealment or evasion of income tax, fraud, corruption or misconduct providing credible information leading to such detection of tax.
(2) The Board may, by notification in the official Gazette, prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section for whistleblowers.
(3) The claim for reward by the whistleblower shall be rejected if-
(a) the information provided is of no value;
(b) the Board already had the information;
(c) the information was available in public records; or
(d) no collection of taxes is made from the information provided from which the Board can pay the reward.
(4) For the purpose of this section, "whistleblower" means a person who reports concealment or evasion of income tax leading to detection or collection of taxes, fraud, corruption or misconduct, to the competent authority having power to take action against the person or an income tax authority committing fraud, corruption, misconduct, or involved in concealment or evasion of taxes.";
(47) in section 231A, sub-section (2) shall be omitted;
(48) in section 231AA, in sub-section (1),-
(a) for the colon at the end a full stop shall be substituted and thereafter the proviso shall be omitted; and
(b) sub-section (4) shall be omitted;
(49) in section 231B,-
(a) in sub-section (3), for the words "car or jeep" the word "vehicle" shall be substituted; and
(b) after sub-section (5), the following new sub-sections shall be added, namely:-
"(6) For the purposes of this section the expression "date of first registration" means:-
(a) the date of issuance of broad arrow number in case a vehicle is acquired from the Armed Forces of Pakistan;
(b) the date of registration by the Ministry of Foreign Affairs in case the vehicle is acquired from a foreign diplomat or a diplomatic mission in Pakistan;
(c) the last day of the year of manufacture in case of acquisition of an unregistered vehicle from the Federal or a Provincial Government; and
(d) in all other cases the date of first registration by the Excise and Taxation Department.
(7) For the purpose of this section "motor vehicle" includes car, jeep, van, sports utility vehicle, pick-up trucks for private use, caravan automobile, limousine, wagon and any other automobile used for private purpose.";
(50) in section 234, after sub-section (5), the following new sub-section shall be added, namely:-
"(6) For the purpose of sub-sections (1) and (2) "motor vehicle" shall include the vehicles specified in sub-section (7) of section 231B.";
(51) in section 236,-
(a) in the marginal note, after the word "Telephone", the words "and internet" shall be inserted;
(b) in sub-section (1),-
(i) In clause (b), the word "and" shall be omitted; and
(ii) in clause (c), for the full stop at the end, a semi-colon and word "; and" shall be substituted and thereafter the following clauses shall be added, namely:-
"(d) internet bill of a subscriber; and
(e) prepaid cards for internet.";
(c) in sub-section (2), after the word "telephone", the words "or internet" shall be inserted; and
(d) in sub-section (3), after the word "telephones", the words "or internet" shall be inserted;
(52) in section 236B,
(a) in sub-section (1), for full stop at end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that this section shall not apply to routes of Baluchistan coastal belt, Azad Jammu and Kashmir, FATA, Gilgit- Baltistan and Chitral."; and
(b) sub-section (4) shall be omitted;
(53) in section 236C, sub-section (3) shall be omitted;
(54) in section 236H, in sub-section (1),-
(i) the word and comma "fertilizer," shall be omitted;
(ii) after the word "retailers", the words "or wholesalers" shall be inserted;
(55) in section 236I, after sub-section (5), the following new sub-section shall be added, namely:-
"(6) Advance tax under this section shall not be collected from a person who is a non-resident and,-
(i) furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days;
(ii) furnishes a certificate that he has no Pakistan-source income; and
(iii) the fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.";
(56) in section 236K, sub-section (3) shall be omitted;
(57) after section 236N, the following new sections shall be inserted, namely:- "236O. Advance tax under this chapter - The advance tax under this chapter shall not be collected in the case of withdrawals made by,-
(a) the Federal Government or a Provincial Government;
(b) a foreign diplomat or a diplomatic mission in Pakistan; or
(c) a person who produces a certificate from the Commissioner that his income during the tax year is exempt.
236P. Advance tax on banking transactions otherwise than through cash.- (1) Every banking company shall collect advance adjustable tax from a non-filer at the time of sale of any instrument, including demand draft, pay order, special deposit receipt, cash deposit receipt, short term deposit receipt, call deposit receipt, rupee traveller''s cheque or any other instrument of such nature.
(2) Every banking company shall collect advance adjustable tax from a non-filer at the time of transfer of any sum through cheque or clearing, interbank or intra bank transfers through cheques, online transfer, telegraphic transfer, mail transfer, direct debit, payments through internet, payments through mobile phones, account to account funds transfer, third party account to account funds transfers, real time account to account funds transfer, real time third party account to account fund transfer,
automated teller machine (ATM) transfers, or any other mode of electronic or paper based funds transfer.
(3) The advance tax under this section shall be collected at the rate specified in Division XXI of Part IV of the First Schedule, where the sum total of payments for all transactions mentioned in sub-section (1) or subsection (2), as the case may be, exceed fifty thousand rupees in a day.
(4) Advance tax under this section shall not be collected in the case of Pakistan Realtime Interbank Settlement Mechanism (PRISM) transactions or payments made for Federal, Provincial or local Government taxes.
236Q. Payment to residents for use of machinery and equipment.- (1) Every prescribed person making a payment in full or in part including a payment by way of advance to a resident person for use or right to use industrial, commercial and scientific equipment shall deduct tax from the gross amount at the rate specified in Division XXIII of Part IV of the First Schedule.
(2) Every prescribed person making a payment in full or in part including a payment by way of advance to a resident person on account of rent of machinery shall deduct tax from the gross amount at the rate specified in Division XXIII of Part IV of the First Schedule.
(3) The tax deductible under sub-sections (1) and (2) shall be final tax on the income of such resident person.
(4) In this section "prescribed person" means a prescribed person as defined in sub-section (7) of section 153.
236R. Collection of advance tax on education related expenses remitted abroad.- (1) There shall be collected advance tax at the rate specified in Division XXIIV of Part-IV of the First Schedule on the amount of education related expenses remitted abroad.
(2) Banks, financial institutions, foreign exchange companies or any other person responsible for remitting foreign currency abroad shall collect advance tax from the payer of education related expenses.
(3) Tax collected under this section shall be adjustable against the income of the person remitting payment of education related expenses.
(4) For the purpose of this section, "education related expenses" includes tuition fee, boarding and lodging expenses, any payment for distant learning to any institution or university in a foreign country and any other expense related or attributable to foreign education.
236S. Dividend in specie. - Every person making payment of dividend-in- specie shall collect tax from the gross amount of the dividend in specie paid at the rate specified in Division I of Part III of the First Schedule.
236T. Collection of tax by Pakistan Mercantile Exchange Limited(PMEX) .- (1) Pakistan Mercantile Exchange Limited(PMEX) shall collect advance tax,-
(a) at the rates specified in Division XXII of Part IV of First Schedule from its members on purchase of futures commodity contracts;
(b) at the rates specified in Division XXII of Part IV of First Schedule from its members on sale of futures commodity contracts;
(c) at the rates specified in Division XXII of Part IV of First Schedule from its members on purchase of futures commodity contracts in lieu of tax on the commission earned by such members;
(d) at the rates specified in Division XXII of Part IV of First Schedule from its members on sale of futures commodity contracts in lieu of tax on the commission earned by such members;
(2) The tax collected under clauses (a) to (d) of sub-section (1) shall be a minimum tax.";
(58) in the First Schedule,- (A) in Part I,-
(a) in Division-I,-
(i) in paragraph (1),-
(a) for the TABLE, the following shall be substituted, namely:-
===========================================
S.No Taxable Income Rate of tax
===========================================
(1) (2) (3)
===========================================
1. Where the taxable 0%
income does not
exceed Rs
400,000
2. Where the taxable 7% of the
income exceeds amount
Rs 400,000 but exceeding Rs
does not exceed 400,000
Rs 500,000
3. Where the taxable Rs 7,000 + 10%
income exceeds of the amount
Rs 500,000 but exceeding Rs
does not exceed 500,000
Rs 750,000
4. Where the taxable Rs 32,000 + 15%
income exceeds of the amount
Rs 750,000 but exceeding Rs
does not exceed 750,000
Rs 1,500,000
5. Where the taxable Rs 144,500 +
income exceeds 20% of the
Rs 1,500,000 but amount
does not exceed exceeding Rs
Rs 2,500,000 1,500,000
6. Where the taxable Rs 344,500 +
income exceeds 25% of the
Rs 2,500,000 but amount
does not exceed exceeding Rs
Rs 4,000,000 2,500,000
7. Where the taxable Rs 719,500 +
income exceeds 30% of the
Rs 4,000,000 but amount
does not exceed exceeding Rs
Rs 6,000,000 4,000,000
8. Where the taxable Rs 1,319,500 +
income exceeds 35% of the
Rs 6,000,000 amount
exceeding Rs
6,000,000"
===========================================
(b) the proviso shall be omitted;
(ii) in paragraph (1A),
(a) for the TABLE, the following shall be substituted, namely:-
"TABLE
===============================================
S.No Taxable Income Rate of tax
===============================================
(1) (2) (3)
===============================================
1. Where the taxable
income does not 0%
exceed Rs 400,000
2. Where the taxable 2% of the amount
income exceeds exceeding Rs
Rs 400,000 but 400,000
does not exceed
Rs 500,000
3. Where the taxable Rs 2,000 + 5% of
income exceeds the amount
Rs 500,000 but exceeding Rs
does not exceed 500,000
Rs 750,000
4. Where the taxable Rs 14,500 + 10% of
income exceeds the amount
Rs 750,000 but exceeding Rs
does not exceed 750,000
Rs 1,400,000
5. Where the taxable Rs 79,500 + 12.5%
income exceeds of the amount
Rs 1,400,000 but exceeding Rs
does not exceed 1,400,000
Rs 1,500,000
6. Where the taxable Rs 92,000 + 15%
income exceeds of the amount
Rs 1,500,000 but exceeding Rs
does not exceed 1,500,000
Rs 1,800,000
7. Where the taxable Rs 137,000 +
income exceeds 17.5% of the
Rs 1,800,000 but amount exceeding
does not exceed Rs 1,800,000
Rs 2,500,000
8. Where the taxable Rs 259,500 + 20%
income exceeds of the amount
Rs 2,500,000 but exceeding Rs
does not exceed 2,500,000
Rs 3,000,000
9. Where the taxable Rs 359,500 +
income exceeds 22.5% of the
Rs 3,000,000 but amount exceeding
does not exceed Rs 3,000,000
Rs 3,500,000
10. Where the taxable Rs 472,000 + 25%
income exceeds of the amount
Rs 3,500,000 but exceeding Rs
does not exceed 3,500,000
Rs 4,000,000
11. Where the taxable Rs 597,000 +
income exceeds 27.5% of the
Rs 4,000,000 but amount exceeding
does not exceed Rs 4,000,000
Rs 7,000,000
12. Where the taxable Rs 1,422,000 +
income exceeds 30% of the amount
Rs 7,000,000 exceeding Rs
7,000,000
===============================================
(b) the proviso, the semicolon at the end of proviso and the word "and" shall be omitted;
(iii) in paragraph (1B), for sub-paragraph (ii), the following shall be substituted, namely:-
"(ii) a taxpayer of the age of not less than sixty years on the first day of that tax year, the tax liability on such income shall be reduced by fifty per cent.";
(b) in Division II, in paragraph (i), in the second proviso for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely :-
"Provided further that the rate of tax imposed on taxable income of a company, other than banking company shall be 32% for the tax year 2016.";
(c) after Division II, the following new Division shall be inserted, namely:-
"Division IIA
======================================================
Rates of Super Tax
Person Rate of super tax
======================================================
Banking Company 4% of the income
Person, other than a banking 3% of the income ";
company, having income equal to
or exceeding Rs 500 million
======================================================
(d) in Division-III, in paragraph (b),
(i) for the figure "10", the figure "12.5" shall be substituted;
(ii) in the first proviso, for the figure "12.5", the figure "15" shall be substituted;
(iii) in the second proviso, after the word "scheme", the comma and words, "REIT Scheme" shall be inserted; and
(iv) for the full stop at the end a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided also that if a Developmental REIT Scheme with the object of development and construction of residential buildings is set up by thirtieth day of June, 2018, dividend received by a person from such Developmental REIT Scheme shall be reduced by fifty percent for three years from thirtieth day of June, 2018.";
(e) after Division III, the following new Division shall be inserted, namely:-
"Division IIIA
Rate for Profit on Debt
The rate of tax for profit on debt imposed under section 5A shall be-
TABLE
==============================================================
S.No Profit on Debt Rate of tax
==============================================================
(1) (2) (3)
==============================================================
1. Where profit on debt does not 10%
exceed Rs 25,000,000
2. Where profit on debt exceeds 2,500,000 + 12.5% of
Rs 25,000,000 but does not the amount exceeding
exceed Rs 25,000,000
Rs 50,000,000
3. Where profit on debt exceeds Rs 5,625,000 + 15%
Rs 50,000,000 of the amount
exceeding Rs
50,000,000";
==============================================================
(f) for Division-VII, the following shall be substituted, namely: "Division VII
Capital Gains on disposal of Securities
The rate of tax to be paid under section 37A shall be as follows-
=================================================================
S.No. Period Tax Year 2015 Tax Year 2016
=================================================================
(1) (2) (3) (4)
=================================================================
1. Where holding period of a 12.5% 15%
security is less than
twelve months
2. Where holding period of a 10% 12.5%
security is twelve months
or more but less than
twenty four months
3. Where holding period of a 0% 7.5%
security is twenty four
months or more but less
than four years
=================================================================
Provided that the rate for companies shall be as specified in Division II of Part I of First Schedule, in respective of debt securities;
Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed, namely:-
============================================================
Category Filer Non-Filer
============================================================
Individual and 10% for stock funds 17.5%
association of persons 10% for others
Company 10% for stock funds 25%:
25% for others
============================================================
Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be 12.5%."
(f) in Division IX, in the Table, in column (1),
(i) against S.No 1, in column (2), after clause (c), following new clause shall be inserted, namely:-
"(d) Dealers or distributors of fertilizers."; and
(ii) against S.No 2, in column (2), in clause (a), the word "fertilizers" and the expression "consumer goods including" shall be omitted;
(B) For Part II, the following shall be substituted, namely:-
"PART II
RATES OF ADVANCE TAX
[See Division II of Part V of Chapter X]
The rate of advance tax to be collected by the Collector of Customs under section 148 shall be-
===================================================================================
S.No Persons Rate
Filer Non-Filer
===================================================================================
(1) (2) (3) (4)
===================================================================================
1. (i) Industrial undertaking 1% of the import 1.5% of the
importing remeltable value as import
steel (PCT Heading increased by value as
72.04) and directly customs-duty, increased
reduced iron for its own sales tax and by
use; federal excise customs-
(ii) Persons importing duty duty, sales
potassic fertilizers in tax and
pursuance of Economic federal
Coordination Committee excise duty
of the cabinet''s decision
No.ECC-155/12/2004
dated the 9th December,
2004;
(iii) Persons importing urea;
(iv)Manufacturers covered
under Notification No.
S.R.O. 1125(I)/2011
dated the 31st
December, 2011 and
importing items covered
under S.R.O.
1125(I)/2011 dated the
31st December, 2011
(v) Persons importing Gold;
and
(vi) Persons importing Cotton
2. Persons importing pulses 2% of the import 3% of the
value as increased import
by customs-duty, value as
sales tax and increased
federal excise duty by
customs-
duty, sales
tax and
federal
excise duty
3. Commercial importers 3% of the import 4.5% of the
covered under Notification value as import
No. S.R.O. 1125(I)/2011 increased by value as
dated the 31st December, customs-duty, increased
2011 and importing items sales tax and by
covered under S.R.O. federal excise customs-
1125(I)/2011 dated the 31st duty duty, sales
December, 2011. tax and
federal
excise duty
4. Ship breakers on import of 4.5% 6.5%
ships
5. Industrial undertakings not 5.5% 8%
covered under S. Nos. 1 to 4
6. Companies not covered under 5.5% 8%
S. Nos. 1 to 5
7. Persons not covered under S. 6% 9%;
===================================================================================
(C) In Part III,
(a) in Division I,-
(i) after the figure "150" the word and figure " and 236S" shall be inserted; and
(ii) in paragraph (c),
(a) for the figure "15" the figure "17.5" shall be substituted; and
(b) in the first proviso,
(i) after the word "scheme" a comma and words ", REIT Scheme" shall be inserted; and
(ii) for the full stop at the end a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided further that if a Developmental REIT Scheme with the object of development and construction of residential buildings is set up by thirtieth day of June, 2018, dividend received by a person from such Developmental REIT Scheme shall be reduced by fifty percent for three years from thirtieth day of June, 2018.";
(c) in the second proviso, for the figure "12.5", the figure "15" shall be substituted;
(b) in Division IA, for the figure "15%" the figure "17.5%" shall be substituted;
(c) in Division II,
(i) for paragraph (4), the following shall be substituted, namely:- "(4) The rate of tax to be deducted from a payment referred to in clause (a) of sub-section (2A) of section 152 shall be--
(i) in case of a company, 4% of the gross amount payable, if the company is a filer and 6% if the company is a non-filer; and
(ii) in any other case, 4.5% of the gross amount payable, if the person is a filer and 6.5% if the person is a nonfiler.";
(ii) in paragraph (5), for sub-paragraph (ii), the following shall be substituted, namely:-
"(ii) in cases other than transport,-
(a) in case of a company, 8% of the gross amount payable, if the company is a filer and 12% if the company is a non-filer; and
(b) in any other case, 10% of the gross amount payable, if the person is a filer and 15% if the person is a non-filer;";
(iii) for paragraph (6), the following shall be substituted, namely:- "(6) The rate of tax to be deducted from a payment
referred to in clause (c) of sub-section (2A) of section 152 shall be,-
(i) 10% of the gross amount payable in case of sportspersons;
(ii) in case of a company, 7% of the gross amount payable, if the company is a filer and 10% if the company is a non-filer; and
(iii) in any other case, 7.5% of the gross amount payable, if the person is a filer and 10% if the person is a non-filer.";
(d) in Division III,-
(i) in paragraph (1), in sub-paragraph (b), for clauses (i) and (ii), the following shall be substituted, namely:-
"(i) in case of a company, 4% of the gross amount payable, if the company is a filer and 6% if the company is a non-filer; and
(ii) in any other case, 4.5% of the gross amount payable, if the person is a filer and 6.5% if the person is a non-filer";
(ii) in paragraph (2), in sub-paragraph (ii) , for clauses (a) and (b), the following shall be substituted, namely:-
"(a) in case of a company, 8% of the gross amount payable, if the company is a filer and 12% if the company is a nonfiler; and
(b) in any other case, 10% of the gross amount payable, if the person is a filer and 15% if the person is a non-filer;";
(iii) in paragraph (3), for sub-paragraphs (i), (ii) and (ii), the following shall be substituted, namely:-
"(i) 10% of the gross amount payable in case of sportspersons;
(ii) in case of a company, 7% of the gross amount payable, if the company is a filer and 10% if the company is a non-filer; and
(iii) in any other case, 7.5% of the gross amount payable, if the person is a filer and 10% if the person is a non-filer.";
(e) in Division VIA, after the word "payment" the word and figure " for filers and 15% for non-filers" shall be inserted;
(D) in Part IV,-
(a) for Division II, the following shall be substituted, namely:-
"Division II
Brokerage and Commission
The rate of collection under sub-section (1) of section 233 shall be,-
(i) in case of filers, -
(a) 10% of the amount of the payment, in case of advertising agents; and
(b) 12% of the amount of payment in all other cases; and
(ii) in case of non-filers, 15% of the amount of payment.";
(b) in Division III,-
(i) for paragraph "(i)" the following shall be substituted, namely:- "(1) In case of goods transport vehicles, tax of two rupees and fifty paisa per kilogram of the laden weight shall be charged for filer and four rupees per kilogram of the laden weight for non-filer.";
(ii) in paragraph (2),for the Table, the following shall be substituted, namely:-
===================================================================
S.No Capacity Rs per seat per annum
Filer Non-Filer
===================================================================
(i) Four or more persons 50 100
but less than ten
persons.
(ii) Ten or more persons 100 200
but less than twenty
persons.
(iii) Twenty persons or 300 500; and
more.
===================================================================
(iii) in paragraph (3),-
(a) for the word "cars", the word "vehicles" shall be substituted; and
(b) for the Table, the following shall be substituted, namely:-
=============================================================
"S. No. Engine capacity for filers for non-filer
=============================================================
(1) (2) (3) (4)
=============================================================
1. upto 1000cc Rs 800 Rs 1,200
1001cc to
2. Rs 1,500 Rs 4,000
1199cc
1200cc to
3. Rs 1,750 Rs 5,000
1299cc
1300cc to
4. Rs 2,500 Rs 7,500
1499cc
1500cc to
5. Rs 3,750 Rs 12,000
1599cc
1600cc to
6. Rs 4,500 Rs 15,000
1999cc
2000cc &
7. Rs 10,000 Rs 30,000";
above
=============================================================
(c) in Division V, for clause (b) the following shall be substituted, namely;
===================================================
"(b) in the case of 14% of the amount
subscriber of internet, of bill or sales price
mobile telephone and of internet pre-paid
pre-paid internet or card or prepaid
telephone card telephone card or
sale of units through
any electronic
medium or whatever
form";
===================================================
(d) in Division VI, for the figure "0.5" the figure "0.6" shall be substituted;
(e) in Division VIA, after the word "transactions" the words and figure " for filers and 0.6% for non-filers" shall be inserted;
(f) for Division VII, the following shall be substituted, namely:-
"DIVISION VII
Advance Tax on Purchase, Registration and Transfer of Motor Vehicles
(1) The rate of tax under sub-sections (1) and (3) of section 231B shall be as follows:-
================================================================
S. No. Engine capacity For filers Tax for non-
filer
================================================================
(1) (2) (3) (4)
================================================================
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"
================================================================
(2) The rate of tax under sub-section (2) of section 231B shall be as follows:
================================================================
S. No. Engine capacity For filers Tax for non-
filer
================================================================
(1) (2) (3) (4)
================================================================
1. upto 850cc - 5000
2. 851cc to 1000cc 5,000 15,000
3. 1001cc to 1300cc 7,500 25,000
4. 1301cc to 1600cc 12,500 65,000
5. 1601cc to 1800cc 18,750 100,000
6. 1801cc to 2000cc 25,000 135,000
7. 2001cc to 2500cc 37,500 200,000
8. 2501cc to 3000cc 50,000 270,000
9. Above 3000cc 62,500 300,000
================================================================
Provided that the rate of tax to be collected shall be reduced by 10% each year from the date of first registration in Pakistan.";
(g) in Division XIV, in the Table, in the first column, against the entry "Fertilizers" ,-
(a) in the second column, for the figure "0.2", the figure "0.7" shall be substituted;
(b) in the third column for the figure "0.4", the figure " 1.4" shall be substituted;
(h) in Division XIX, in clause (i), for the figure "100,000", the figure"75,000" shall be substituted;
(i) in Division XX, for the Table, the following shall be substituted, namely:-
===========================================================
"S. No. Type of Ticket Rate
===========================================================
(1) (2) (3)
===========================================================
1. First/Executive Class Rs 16,000 per person
2. Others excluding Economy Rs 12,000 per person
3. Economy 0"; and
===========================================================
(j) after Division XX, the following new Divisions shall be added, namely:-
"Division XXI
Advance Tax On Banking Transactions Otherwise Than Through Cash
The rate of tax to be collected under section 236P shall be 0.6% of the transaction for non-filers.
Division XXII
Rate of Collection of Tax by Pakistan Mercantile Exchange Limited
The rate of tax to be collected under section 236T shall be shall be as follows:-
(a) in case of sale or purchase of future commodity contract as per clause (a) and (b) of sub-section (1) of section 236T shall be 0.1%.
(b) in case of commission on sale or purchase of future commodity contract as per clause (c) and (d) of sub-section (1) of section 236T shall be 0.1%.
DIVISION XXIII
Rate of collection of tax under section 236Q shall be 10 percent of the amount of payment.
DIVISION XXIV
Collection of advance tax on education related expenses remitted abroad
Rate of collection of tax under section 236R shall be 5 percent of the amount of total education related expenses.";
(59) in the Second Schedule,-
(A) in Part I,-
(i) clause (20) shall be omitted;
(ii) in clause (61),after sub-clause (xliv), the following new subclause shall be added, namely:-
"(xlv) The Indus Hospital, Karachi."
(iii) in clause (66),-
(a) sub-clause (xxx) occurring for the second time shall be renumbered as "(xxxii)";
(b) after sub-clause (xxxii) renumbered as aforesaid, the following new sub-clause shall be added, namely:- "(xxxiii) The Indus Hospital, Karachi.";
(iv) in clause (99A), for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that profit and gains on sale of immovable property to a Developmental REIT Scheme with the object of development and construction of residential buildings shall be exempt upto thirtieth day of June, 2020"
(v) in clause (103A), after the figure "59B" the words "subject to the condition that return of the group has been filed for the tax year." shall be inserted;
(vi) clause (113) shall be omitted;
(vii) in clause (126A) for the figure, "twenty" the figure, "twenty three" shall be substituted;
(viii) clause (126F) shall be omitted;
(ix) after clause (126H), the following new clauses shall be added, namely:-
"(126I) Profits and gains derived by a taxpayer, from an industrial undertaking set up by 31st day of December, 2016 and engaged in the manufacture of plant, machinery, equipment and items with dedicated use (no multiple uses) for generation of renewable energy from sources like solar and wind, for a period of five years beginning from first day of July, 2015.
(126J) Profits and gains derived by a taxpayer, from an industrial undertaking set up between 1st day of July, 2015 and 30th day of June, 2016 engaged in operating warehousing or cold chain facilities for storage of agriculture produce for a period of three years beginning with the month in which the industrial undertaking is set up or commercial operations are commenced, whichever is later.
(126K) Profits and gains derived by a taxpayer, from an industrial undertaking set up between 1st day of July, 2015 and 31st day of December, 2016 which is engaged in operating halal meat production and has obtained halal certification, for a period of four years beginning with the month in which the industrial undertaking is set up or commercial production is commenced, whichever is later. (126L) Profits and gains derived by a taxpayer, from a manufacturing unit set up in Khyber Pukhtunkhwa Province between 1st day of July, 2015 and 30th day of June, 2018 for a period of five years beginning with the month in which the industrial undertaking is set up or commercial production is commenced, whichever is later:
Provided that exemption under this clause shall be admissible where-
(a) the manufacturing unit is setup between the first day of July, 2015 and 30th day of June, 2018, both days inclusive; and
(b) the manufacturing unit is not established by the splitting up or reconstruction or reconstitution of an undertaking already in existence or by transfer of machinery or plant from an undertaking established in Pakistan at any time before 1st July 2015.
(126M) Profits and gains derived by a taxpayer from a transmission line project set up in Pakistan on or after the 1st day of July, 2015. The exemption under this clause shall apply to such project which is-
(a) owned and managed by a company formed for operating the said project and registered under the Companies Ordinance, 1984 (XLVII of 1984), and having its registered office in Pakistan;
(b) not formed by the splitting up, or the reconstruction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business; and
(c) owned by a company fifty per cent of whose shares are not held by the Federal Government or Provincial Government or a Local Government or which is not controlled by the Federal Government or
a Provincial Government or a Local Government:
Provided that the exemption under this clause shall not apply to projects set up on or after the thirtieth day of June, 2018."; and
(x) after clause (140), the following new clauses shall be added, namely:-
"(141) Profit and gains derived by LNG Terminal Operators and Terminal Owners for a period of five years beginning from the date when commercial operations are commenced.
(142) Income from social security contributions derived by Balochistan Employees'' Social Security Institution, Employees'' Social Security Institution Khyber Pakhtunkhwa, Punjab Employees'' Social Security Institution and Sindh Employees'' Social Security Institution.
Explanation.- For the removal of doubt, it is clarified that all incomes other than social security contributions shall not be exempt";
(B) in Part II,-
(i) clauses (13C), (14), (14A) (14B) and (21) shall be omitted; and
(ii) after clause (28A), the following new clause shall be added, namely:-
"(28B) The rate of tax shall be 0.15% under section 231A on cash withdrawal by an exchange company, duly licensed and authorized by the State Bank of Pakistan, exclusively dedicated for its authorized business related transactions, subject to the condition that a certificate issued by the concerned Commissioner Inland Revenue for a financial year mentioning details and particulars of its Bank Account being used entirely for business transactions is provided.";
(C) in Part III, clause (16) shall be omitted; and
(D) in Part IV,-
(a) in clause (11A),-
(i) in sub-clause (i), for the word, comma and figures "Rules, 2006" the word, comma and figures "Regulations, 2015" shall be substituted;
(ii) sub-clause (iv) shall be omitted;
(iii) in sub-clause (v), the words "and 132B" shall be omitted;
(iv) in sub-clause (xvi), the word "and" shall be omitted; and
(v) in sub-clause (xvii), for the full stop at the end a semicolon and word "; and" shall be substituted and thereafter the following new sub-clauses shall be added, namely,-
"(xviii) companies, qualifying for exemption under clause (132B) of Part-I of this Schedule, in respect of receipts from a coal mining project in Sindh, supplying coal exclusively to power generation projects.
(xix) LNG Terminal Operators and LNG Terminal Owners.
(xx) taxpayers located in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA for tax year 2010, 2011 and 2012 excluding manufacturers and suppliers of cement, sugar, beverages and cigarettes.
(xxi) Rice Mills for the Tax Year 2015.
(xxii) taxpayers qualifying for exemption under clauses (126I) of Part-I of this Schedule in respect of income from manufacture of equipment with dedicated use for generation of renewable energy.
(xxiii) taxpayers qualifying for exemption under clauses (126J) of Part-I of this Schedule in respect of income from operating warehousing or cold chain facilities for storage of agriculture produce.
(xxiv) taxpayers qualifying for exemption under clauses (126K) of Part-I of this Schedule in respect of income from operating halal meat production, during the period mentioned in clause (126K).
(xxv) taxpayers qualifying for exemption under clauses (126L) of Part-I of this Schedule in respect of income from a manufacturing unit set up in Khyber Pukhtunkhwa Province between 1st day of July, 2015 and 30th day of June, 2018.";
(b) after clause (11C), the following new clause shall be inserted, namely:-
"(11D) The provisions of section 113C shall not apply to LNG Terminal Operators and LNG Terminal Owners.";
(c) clause (16A) shall be omitted;
(d) in clause (46), for the word "or" occurring for the second time, the expression "and provisions of sub-section (2A) of section 152 shall not apply to" shall be substituted;
(e) in clause (56),-
(i) in sub-clause (i), for the commas, figures and words "Chapters 27, 86 and 99", the figures and words "Chapter 86 and 99 except PCT Heading 9918" shall be substituted;
(ii) after clause (i), amended as aforesaid, the following new clause shall be inserted, namely,-
"(ia) Petroleum oils and oils obtained from bituminous minerals crude (PCT Code 2709.0000), Furnace-oil (PCT Code 2710.1941), High speed diesel oil (PCT) Code 2710.1931), Motor spirit (PCT Code 2710.1210), J.P.1 (PCT Code 2710.1912), base oil for lubricating oil (PCT Code 2710.1993) imported by Pakistan State Oil Company Limited, Shell Pakistan Limited, Attock Petroleum Limited, Byco Petroleum Pakistan Limited, Admore Gas Private Limited, Chevron Pakistan Limited, Total-PARCO Pakistan(Private) Limited, Hascol Petroleum Limited, and oil refineries.";
(f) in clause (56B), the expression "(56B) Provisions of section 148 shall not apply in respect of import of potatoes between 5th of May, 2014 and 31st of July, 2014, provided that such imports shall not exceeds 200,000 metric tons in aggregate during the said period." shall be omitted;
(g) clause (56H) shall be omitted;
(h) in clause (57), the Explanation at the end shall be numbered as paragraph(i) of that Explanation and thereafter the following new paragraph shall be added, namely:-
"(ii) It is further clarified that in-house preparation and processing of food and allied items for sale to customers
shall not disqualify a company from being treated as a Trading House, provided that all the conditions in this clause are fulfilled and sale of such items does not exceed two per cent of the total sales.";
(i) in clause (59), sub-clause (iii) shall be omitted;
(j) clauses (61A) and (72A) shall be omitted (k) in clause (77), after the word and comma "torches,", a comma and the words "tubular daylighting devices such as solatube," shall be inserted;
(l) clauses (79) and (83) shall be omitted;
(m) in clause (86), for the figure "2016" the figure "2017" shall be substituted;
(n) clauses (89) and (90) shall be omitted;
(o) after clause (90), omitted as aforesaid, the following new clauses shall be added, namely:
==========================================================
Equipment PCT Code
==========================================================
(i) Rotavator 8432.8010
(ii) Cultivator 8432.2910
(iii) Ridger 8432.8090
(iv) Sub soiler 8432.3090
(v) Rotary slasher 8432.8090
(vi) Chisel plow 8432.1010
(vii) Ditcher 8432.1090
(viii) Border disc 8432.2990
(ix) Disc harrow 8432.2100
(x) Bar harrow 8432.2990
(xi) Mould board plow 8432.1090
(xii) Tractor rear or 8430.6900
front blade
(xiii) Land leveller or 8430.6900
land planer
(xiv) Rotary tiller 8432.8090
(xv) Disc plow 8432.1090
(xvi) Soil-scrapper 8432.8090
(xvii) K.R.Karundi 8432.8090
(xviii) Tractor mounted 8701.9020
trancher
(xix) Land leveler 8430.6900
==========================================================
(ii) Seeding or planting equipment
==========================================================
Equipment PCT Code
==========================================================
(i) Seed-cum-fertilizer drill 8432.3010
(wheat, rice barley, etc.)
(ii) Cotton or maize planter 8432.3090
with fertilizer attachment
(iii) Potato planter 8432.3090
(iv) Fertilizer or manure 8432.4000
spreader or broadcaster
(v) Rice transplanter 8432.3090
(vi) Canola or sunflower drill 8432.3010
(vii) Sugarcane planter 8432.3090
==========================================================
(iii) Irrigation, drainage and agro-chemical
application equipment
==========================================================
Equipment PCT Code
==========================================================
(i) Tubewells filters or 8421.2100,
strainers 8421.9990
(ii) Knapsack sprayers 8424.2010
(iii) Granular applicator 8424.2010
(iv) Boom or field sprayers 8424.2010
(v) Self propelled sprayers 8424.2010
(vi) Orchard sprayer 8424.2010
==========================================================
(iv) Harvesting, threshing and storage equipment
==========================================================
Equipment PCT Code
==========================================================
(i) Wheat thresher 8433.5200
(ii) Maize or groundnut thresher 8433.5200
or sheller
(iii) Groundnut digger 8433.5900
(iv) Potato digger or harvester 8433.5300
(iv) Sunflower thresher 8433.5200
(v) Post hole digger 8433.5900
(vi) Straw balers 8433.4000
(vii) Fodder rake 8433.5900
(viii) Wheat or rice reaper 8433.5900
(ix) Chaff or fodder cutter 8433.5900
(x) Cotton picker 8433.5900
(xi) Onion or garlic harvester 8433.5200
(xii) Sugar harvester 8433.5200
(xiii) Tractor trolley or forage wagon 8716.8090
(xiv) Reaping machines 8433.5900
(xv) Combined harvesters 8433.5100
(xvi) Pruner/shears 8433.5900
==========================================================
(v) Post-harvest handling and processing
& miscellaneous machinery
==========================================================
Equipment PCT Code
==========================================================
(i) Vegetables and fruits 8437.1000
cleaning and sorting or
grading equipment
(ii) Fodder and feed cube 8433.4000
maker equipment
==========================================================
(92) The provisions of section 148 shall not apply to.-
=============================================
PCT Code
=============================================
Aircraft, whether 8802.2000,
imported or acquired on 8802.3000,
wet or dry lease 8802.4000
Maintenance kits for use Respective
in trainer aircrafts of headings
PCT headings
8802.2000 and
8802.3000
Spare parts for use in Respective
aircrafts, trainer aircrafts headings
or simulators
Machinery, equipment Respective
and tools for setting up headings
maintenance, repair and
overhaul (MRO)
workshop by MRO
company recognized by
Aviation Division
Operational tools, Respective
machinery, equipment headings
and furniture and fixtures
on one-time basis for
setting up Greenfield
airports by a company
authorized by Aviation
Division
Aviation simulators Respective
imported by airline headings
company recognized by
Aviation Division
=============================================
(60) in the Fourth Schedule,-
(a) rule (6A) shall be omitted;
(b) in rule (6B),-
(i) for the Table, the following shall be substituted, namely:
======================================================================
"S.No. Period Tax Year 2015 Tax Year 2016
======================================================================
(1) (2) (3) (4)
======================================================================
1. Where holding period of a 12.5% 15%
security is less than
twelve months
2. Where holding period of a 10% 12.5%
security is twelve months
or more but less than
twenty four months
3. Where holding period of a 0% 7.5%";
security is twenty four
months or more but less
than four years
and
======================================================================
(ii) the proviso shall be omitted;
(c) after rule 6C, the following new rule shall be inserted, namely:-
"6D. The provisions of section 4B shall apply to the taxpayers under this schedule and taxed at the rates specified in Division IIA of Part I of the First Schedule.";
(61) in the Fifth Schedule,-
(A) in Part I, after rule 4A, the following new rule shall be inserted, namely:-
"4AA. The provisions of section 4B shall apply to the taxpayers under this Part and taxed at the rates specified in Division IIA of Part I of the First Schedule.";
(B) in Part II, after rule 2, the following new rule shall be inserted, namely:-
"2A. The provisions of section 4B shall apply to the taxpayers under this Part and taxed at the rates specified in Division IIA of Part I of the First Schedule.";
(62) in the Seventh Schedule,-
(i) in rule 6, the expression "The net income from Dividend and net income from Capital Gains on sale of shares of listed companies shall be taxed at the rate of ten and twelve and a half, respectively" and the three provisos thereafter shall be omitted;
(ii) rules (6A) and (6B) shall be omitted; and
(iii) after rule (7A), the following new rules shall be inserted, namely:- "(7B) From tax year 2015 and onwards, income from Dividend and income from Capital Gains shall be taxed at the rate specified in Division II of Part I of First Schedule.
(7C) For tax year 2015, the provisions of section 4B shall apply to banking companies and shall be taxed at the rate specified in Division IIA of Part I of First Schedule."; and
(63) in the Eighth Schedule, in rule 1, after sub-rule (7) , the following new subrule shall be added, namely:-
"(8) The provisions of section 4B shall apply to the taxpayers under this schedule and taxed at the rates specified in Division IIA of Part I of the First Schedule.";
6. Amendments of the Federal Excise Act, 2005. - In the Federal Excise Act, 2005, the following further amendments shall be made, namely:-
(1) In section 2, after clause (24), the following new clause shall be added, namely:-
"(24A) "whistleblower" means whistleblower as defined in section 42D of the Federal Excise Act, 2005";
(2) in section 16,-
(a) in sub-section (2), after the word "may", occurring for the first time, the commas and words ", pursuant to the approval to the Economic Coordination Committee of Cabinet, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in duties, development of backward areas and implementation of bilateral and multilateral agreements," shall be inserted;
(b) sub-section (3) shall be omitted;
(c) in sub-section (4), for the words, figures and brackets "sub-sections
(2) and (3)", the word, figure and brackets "sub-section (2)" shall be substituted; and
(d) after sub-section (4), amended as aforesaid, the following new subsections shall be added, namely:-
"(5) The Federal Government shall place before the National Assembly all notifications issued under this section in a financial year.
(6) Any notification issued under sub-section (2) after 1st July, 2015, shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued.";
(3) in section 35, in sub-section (1), after the words "suo moto", the commas and words ", or otherwise" shall be inserted;
(4) after section 42C, a new section 42D shall be added, namely:-
"42D. Reward to whistleblowers.- (1) The Board may sanction reward to whistleblowers in cases of concealment or evasion of duty, corruption or misconduct providing credible information leading to such detection of evasion of duty;
(2) The Board may, by notification in the official Gazette, prescribe the procedure in this behalf and also specify the apportionment of reward sanctioned under this section for whistleblowers;
(3) The claim for reward by the whistleblower shall be rejected if-
(a) the information provided is of no value;
(b) the Board already had the information;
(c) the information was available in public records; or
(d) no collection of duty is made from the information provided from which the Board can pay the reward;
(4) For the purpose of this section, "whistleblower" means a person who reports concealment or evasion of duty leading to detection or collection of duty, corruption or misconduct, to the competent authority having power to take action against the person or a federal excise authority committing fraud, corruption, misconduct, or involved in concealment or evasion of duty.";
(5) in section 45A,-
(a) in sub-section (2), after the word "labels", the word and comma "barcodes," shall be inserted; and
(b) (b) after sub-section (2), amended as aforesaid, the following new sub-section shall be added, namely:-
"(3) Such tax stamps, banderoles, stickers, labels, barcodes etc., shall be acquired by the registered person referred to in sub-section (2) from a licensee appointed by the Board for the purpose, against price approved by the Board, which shall include the cost of equipment installed by such licensee in the premises of the said registered person.";
(6) in section 46,-
(a) in the heading, the word "Departmental" shall be omitted;
(b) for sub-section (4), the following shall be substituted, namely:-
(1) The Board may appoint as many special audit panels as may be necessary, comprising two or more members from the following -
(a) an officer or officers of Inland Revenue;
(b) a firm of Chartered Accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961);
(c) a firm of Cost and Management Accountants as defined under the Cost and Management Accountants Act, 1966 (XIV of 1966); or
(d) any other person as directed by the Board,
to conduct audit of a registered person or persons, including audit of refund claims and forensic audit and the scope of such audit shall be determined by the Board or the Commissioner Inland Revenue on a case-to-case basis. In addition, the Board may, where it considers appropriate, also get such audit conducted jointly with similar audits being conducted by provincial administrations of sales tax on services.";
(c) after sub-section (4), substituted as aforesaid, the following new sub-sections shall be inserted and the existing sub-section (5) shall be re-numbered as sub-section (9), namely:-
"(5) Each special audit panel shall be headed by a chairman who shall be an officer of Inland Revenue;
(6) If any one member of the special audit panel, other than the chairman, is absent from conducting an audit, the proceedings of the audit may continue and the audit conducted by the special audit panel shall not be invalid or be called in question merely on the ground of such absence.
(7) The Board may prescribe rules in respect of constitution, procedure and working of special audit panel.
(8) Every member of the special audit panel shall have the powers of officers of Inland Revenue under sections 23 and 45 and sub-sections (1) to (3) of section 46.";
(7) after section 47, the following new sections shall be inserted, namely:- "47A. Agreements for the exchange of information.- (1) The
Federal Government may enter into bilateral or multilateral agreements with provincial governments or with governments of foreign countries for the exchange of information, including electronic exchange of information, with respect to excise duty imposed under this Act or any other law of Pakistan, or under the corresponding laws of that country and may, by notification in the official Gazette, make such provisions as may be necessary for implementing such agreements.
(2) The provisions of section 107 of the Income Tax Ordinance, 2001 (XLIX of 2001) shall, mutatis mutandis, apply to this section.
47B. Disclosure of information by a public servant.- (1) Any information acquired under any provision of this Act or in pursuance of a bilateral or multilateral agreement or tax information exchange agreement shall be confidential and no public servant shall disclose any such information, except as provided under section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001).
The provisions of section 216 of Income Tax Ordinance 2001 (XLIX of 2001) shall, mutatis mutandis, apply to this section.";
(8) in the First Schedule,-
(a) in Table I, in column (1),-
(i) against serial numbers 4, 5 and 6, in column (4), for the word "nine", the word "twelve" shall be substituted;
(ii) for serial numbers 9 and 10 and the corresponding entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:-
===========================================================
"9. Locally produced 24.02 Rupees three
cigarettes if their thousand and
on-pack printed thirty per
retail price exceeds thousand
rupees three cigarettes
thousand three
hundred and fifty
per thousand
cigarettes
10. Locally produced 24.02 Rupees one
cigarettes if their on- thousand three
pack printed retail hundred and
price does not twenty per
exceed rupees three thousand
thousand three cigarettes";
hundred and fifty per
thousand cigarettes
; and
===========================================================
(iii) after serial number 55, a new serial number and entries relating thereto in columns (2), (3) and (4) shall be added, namely:-
===========================================================
"56. Filter rod for 5502.0090 Rupee 0.75
cigarettes per filter rod";
and
===========================================================
(b) in Table II, in column (1), against serial number 3, in column (2), in clause (a), -
(i) sub-clause (iii) and the entry relating thereto in column (4) shall be omitted; and
(ii) after sub-clause (iii), omitted as aforesaid, in the Explanation, for the expression ", and "socio-economic routes" means journeys along the Balochistan coastal belt", the expression "as defined in S. No. 9 of Table II of the Third Schedule" shall be substituted;
(9) in the Third Schedule,-
(a) in Table I, in column (1), after S. No. 17 and the entries relating thereto in columns (2) and (3), the following new S. Nos and the corresponding entries relating thereto in columns (2) and (3) shall be added, namely: -
===========================================================
"18 White cement 25.23
19 Motor cars and other motor 87.03";
vehicles principally designed for the
transport of persons including
station wagons and racing cars of
cylinder capacity exceeding 850cc.
===========================================================
(b) in Table II, in column (1), after omitted S. No. 8 and the entries relating thereto in columns (2) and (3), the following new S. Nos and the corresponding entries relating thereto in columns (2) and
(3) shall be added, namely: -
===========================================================
"9 Services provided or rendered in 98.03
respect of travel by air of
passengers on "socio-economic
routes", which means the shortest
part of journeys starting from or
ending at an airport located in
Makran coastal region, FATA, Azad
Jammu and Kashmir, Gilgit-
Baltistan or Chitral
10 Services provided or rendered in 9803.1000
respect of travel by air of
passengers on international
journeys from Pakistan to:
(a) Hajj passengers;
(b) Diplomats; and
(c) Supernumerary crew
11 Advertisements in newspapers and 9802.4000
periodicals
12 Services provided or rendered by 98.13".
banking companies and non-
banking financial companies in
respect of Hajj and Umrah,
cheque book, insurance,
Musharika and Modaraba financing
and utility bill collection.
===========================================================
STATEMENT OF OBJECTS AND REASONS
The purpose of this bill is to make financial provisions for the year beginning on the first day of July, 2015 except sub-sections (8) and (9) of section 2 which shall have effect from the next day of assent given to this Act by the President of the Islamic Republic of Pakistan.
(MUHAMMAD ISHAQ DAR)
Minister for Finance and Revenue
CUSTOMS ACT, 1969 (IV OF 1969)
Clause 2(1)(a) Seeks to substitute sub-section (1) of section 19 in pursuance of the Finance (Amendment) Ordinance 2015 to restrict the powers of Federal Government to grant exemption from Customs duties, pursuant to approval of the Economic Coordination Committee of the Cabinet.
Clause 2(1)(b) Seeks to insert new sub-section (4) and (5) to section 19 in pursuance of the Finance (Amendment) Ordinance 2015 that all notifications issued under section 19 shall be placed before the National Assembly in a financial year, in which these were issued.
Clause 2(2) Seeks to omit section 20 in pursuance of the Finance (Amendment) Ordinance 2015 to revoke Board''s powers to grant exemption from duty.
Clause 2(3) Seeks to amend proviso to sub-section (3) of section 32 to raise the lower limit of making contravention case from Rs 100 to Rs 20,000.
Clause 2(4)(a) Seeks to amend section 79(1) in order to get full declaration of goods under transhipment at the port of departure.
Clause 2(4)(b) Seeks to add Explanation in clause (b) of section 79(1) that in case of transhipment, assessment and payment of duties and other charges shall be at the port of destination.
Clause 2(5) Seeks to add a proviso to sub-section (1) of section 121 to provide a legal cover to authorization of Transhipment Permit (TP) by Customs computerized system.
Clause 2(6) Seeks to add Explanation after sub-section (2) of section 123 to give legal cover to the transhipment of goods to upcountry stations from Off-Dock terminals.
Clause 2(7)(a) Seeks to add sub-serial number (ii) to serial number 1 of the Table under section 156(1) to implement the requirement of placement of invoice and packing list inside the import container.
Clause 2(1)(b) Seeks to amend section 156(1)64 to cover offences of misdeclaration, illegal removal and concealment in case of transit goods.
Clause 2(8) Seeks to amend First Schedule (Pakistan Customs Tariff) to the Customs Act.
Clause 2(9) Seeks to substitute the Fifth Schedule to the Customs Act.
SALES TAX ACT, 1990
Clause 3(1)(a) Seeks to substitute new clause in section 2.
Clause 3(1)(b) Seeks to substitute the word "eight" for the word "seven" in clause (5AB) of section 2.
Clause 3(1)(c) Seeks to omit the comma, words and figures "and his total turnover per annum shall be taken into account for the purposes of registration under section 14" in clause (28) of section 2.
Clause 3(1)(d)(a) Seeks to omit the word "and" in sub-clause (b) of clause (33) of section 2.
Clause 3(1)(d)(b) Seeks to substitute for the colon at the end, semi colon and word "and" and to add new sub-clause (d) in sub-clause (c) in clause (33) of section 2.
Clause 3(1)(e) Seeks to insert new clause to define whistle blower.
Clause 3(2)(a) Seeks to substitute the word "two" for the word "one" in subsection (1A) of section 3.
Clause 3(2)(b) Seeks to substitute clause (b) in sub-section (2) of section 3.
Clause 3(3) Seeks to insert the expression "including recovery" after the word "enforcement" in sub-section (1) of section 6.
Clause 3(4) Seeks to insert the expression "section 81" after the figure "79" in clause (ii) in sub-section (2) of section 7.
Clause 3(5)(a)(a) Seeks to insert the words "pre-fabricated buildings and" after the word "excluding" in clause (h) in sub-section (1) of section 8.
Clause 3(5)(a)(b) Seeks to omit the word "and" at the end in clause (h) in subsection (1) of section 8.
Clause 3(5)(b) Seeks to substitute a semi colon at the end for the full stop in clause (i) in sub-section (1) of section 8 and add new clauses (j), (k) and (l) in sub-section (1) of section 8.
Clause 3(6) Seeks to insert the expression ", of which the burden to prove shall be on the department" after the word "unpaid" in section 8A.
Clause 3(7)(a)(i) Seeks to insert the commas and words "pursuant to the approval of the Economic Coordination Committee of Cabinet, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in taxes, development of backward areas and implementation of bilateral and 132ultilateral agreements" after the word "may" in sub-section (2) of section 13 and to omit the word "and" at the end in subsection (2) of section 13.
Clause 3(7)(a)(ii) Seeks to omit clause (b) in sub-section (2) of section 13.
Clause 3(7)(b) Seeks to omit the expression "or, as the case may be, order made under clause (b) of that sub-section" in sub-section (3) of section 13.
Clause 3(7)(c) Seeks to add new sub-sections (6) and (7) after already omitted sub-section (5) of section 13.
Clause 3(8) Seeks to substitute the existing section14.
Clause 3(9) Seeks to insert new section 21A after section 21.
Clause 3(10) Seeks to omit the words, figures and comma "or section 36, as the case may be" in sub-section (3) of section 25.
Clause 3(11)(a) Seeks to substitute in the headings the words "Audit by Special Audit Panels" for the words "Special Audit by Chartered Accountants or Cost Accountants" in section 32A.
Clause 3(11)(b) Seeks to substitute the existing sub-section (1) of section 32A.
Clause 3(12)(a) Seeks to substitute the word "ten" for the word "fifteen" in the proviso, in column (2) against serial number 1 in the Table in section 33.
Clause 3(12)(b) Seeks to substitute the word "ten" for the word "fifteen" in the first proviso, in column (2) against serial number 5 in the Table in section 33.
Clause 3(13)(a) Seeks to insert the word and comma "barcodes," after the word "labels" in sub-section (2) of section 40C.
Clause 3(13)(b) Seeks to add new sub-section (3) after sub-section (2) in section 40C.
Clause 3(14) Seeks to insert the words and comma ", or otherwise" after the word "motion" in sub-section (1) in section 45A.
Clause 3(15) Seeks to insert new sections 56A, 56B and 56C after section 56.
Clause 3(16) Seeks to add a new section 72D after section 72C.
Clause 3(16)(a) Seeks to omit the words "to the Export Processing Zones and" in column (2) against serial number 6 in the Fifth Schedule.
Clause 3(16)(b) Seeks to insert new number 6A and entry relating thereto after serial number 6 in the Fifth Schedule.
Clause 3(16)(c) Seeks to omit the words "who makes local supplies of both taxable and exempt goods" in column (2) against serial number 9 in the Fifth Schedule.
Clause 3(16)(d) Seeks to omit the words "including flavored milk" and the word and figures "and 0402.9900" in clause (ix) in column (2) and thereafter to omit clauses (x) to (xvi) against serial number 12 in the Fifth Schedule.
Clause 3(17)(a)(i) Seeks to omit the comma and figures "1006.1010," in column (3), against serial number 19 in column (1) in Table- 1 in the Sixth Schedule.
Clause 3(17)(a)(ii) Seeks to substitute the figures and comma "1006.1010, 1209.1000" for the figures "1209.1000" in column (3), against serial number 20 in column (1) in Table-1 in the Sixth Schedule.
SClause 3(17)(a)(iii) eeks to omit the serial numbers 28, 39 and 56 and entries relating thereto in columns (2) and (3) in column (1) in Table-1 in the Sixth Schedule.
Clause 3(17)(a)(iv) Seeks to substitute the existing serial numbers 73 to 80 and the entries relating thereto in columns (2) and (3) in column (1) in Table-1 in the Sixth Schedule.
Clause 3(17)(a)(v) Seeks to insert the words "or Fifth Schedule" after the word "Schedule" in column (2), against serial number 105 in column (1) in Table-1 in the Sixth Schedule.
Clause 3(17)(a)(vi)(A) Seeks to insert the words and comma "consisting of plastic covering and mulch film, anti-insect net and share net" after the word "equipment" in clause (1) in column (2) against serial number 114 in column (1) in Table-1 in the Sixth Schedule.
Clause 3(17)(a)(vi)(B) Seeks to substitute the figures and commas "3920.1000, 3926.9099, 5608.1900, 5608.9000" for the figures and comma "8430.3100, 8430.3900" in column (3) aginat serial number 114 in column (1) in Table-1 in the Sixth Schedule.
Clause 3(17)(a)(vii) Seeks to add new serial numbers 117 to 128 and entries relating thereto in columns (1), (2) and (3) after serial number 116 in column (1) in Table-1 in the Sixth Schedule.
Clause 3(17)(b)(a) Seeks to omit the serial numbers 13 and 14 and entries relating thereto in columns (2) and (3) in column (1) in Table-2 in the Sixth Schedule.
Clause 3(17)(b)(b) Seeks to add new serial numbers 17 to 20 and entries relating thereto in columns (1), (2) and (3) after the serial number 16 in column (1) in Table-2 in the Sixth Schedule.
Clause 3(17)(b)(c) Seeks to omit serial numbers 10 and 16 and entries relating thereto in columns (2), (3) and (4) in column (1) in the Annexure in Table-3 in the Sixth Schedule.
Clause 3(18)(a)(i) Seeks to substitute the figure "10%" for the figure "5%" in column (4) against serial number 1 in column (1) in Table-1 in the Eighth Schedule.
Clause 3(18)(a)(ii) Seeks to omit serial number 3 and entries relating thereto in columns (2), (3), (4) and (5) in column (1) in Table-1 in the Eighth Schedule.
Clause 3(18)(a)(iii) Seeks to substitute the figure "10%" for the figure "5%" in column (4) against serial numbers 4 and 6 in column (1) in Table-1 in the Eighth Schedule.
Clause 3(18)(a)(iv) Seeks to insert new serial numbers 7 to 30 and entries relating thereto in columns (1), (2), (3), (4) and (5) after serial number 6 in column (1) in Table-1 in the Eighth Schedule.
Clause 3(18)(b)(i) Seeks to insert the commas and words ", except goods mentioned in serial numbers 1, 5 and 6 of the Annexure which shall be charged at the rate of ten percent" after the words "five percent" in the premable in Table-2 in the Eighth Schedule.
Clause 3(18)(b)(ii) Seeks to omit serial numbers 3 and 7 and entries relating thereto in columns (2), (3) and (4) in column (1) in the Annexure in Table-2 in the Eighth Schedule.
Clause 3(19)(a) Seeks to substitute the figure "300" for the figure "150" in columns (3) and (4), against serial number 2 in column (1) in the Table in the Ninth Schedule.
Clause 3(19)(b) Seeks to substitute the figure "500" for the figure "250" in columns (3) and (4), against serial number 2 in column (1) in the Table in the Ninth Schedule.
Clause 3(19)(c) Seeks to substitute the figure "1000" for the figure "500" in columns (3) and (4), against serial number 2 in column (1) in the Table in the Ninth Schedule.
ISLAMABAD CAPITAL TERRITORY (TAX ON SERVICES) ORDINANCE, 2001 (XLII OF 2011)
Clause 4(1)(a) Seeks to substitute the words "rates specified in column (4) of the schedule to this Ordinance" for the words "rate of sixteen per cent" in sub-section (1) in section 3.
Clause 4(1)(b) Seeks to insert the words, brackets and figure "column (2) of" after the words "specified in" in sub-section (2) in section 3.
Clause 4(2) Seeks to substitute the Schedule.
AMENDMENT OF INCOME TAX ORDINANCE,
XLIX OF 2001
Clause 5(1)(a) Seeks to amend Clause 29 of the Section 2 to include the bonus shares issued by non listed-companies in the definition of "Income".
Clause 5(1)(a) Seeks to define "Consumer Goods" in Section 2.
Clause 5(1)(b) Seeks to define development REIT Scheme.
Clause 5(1)(c) Seeks to define "Fast moving consumer goods" in Section 2
Clause 5(1)(d) Seeks to define " Imputable Goods" in Section 2
Clause 5(1)(e) Seeks to make a technical amendment to definition of income.
Clause 5(1)(f) Seeks to explain "Pakistan Mercantile Exchange Limited", PMEX in Section 2
Clause 5(1)(g) Seeks to substitute Clause 47A of Section 2 to amend the definition of REIT.
Clause 5(1)(h) Seeks to make technical correction in Clause 47B of Section 2.
Clause 5(1)(i) Seeks to insert new Clause to define "Rental REIT" in Section 2.
Clause 5(1)(j) Seeks to make consequential amendment in definition of " Small Company" in Section 2.
Clause 5(1)(k) Seeks to define whistle blower.
Clause 5(2) Seeks to introduce Super Tax for rehabilitation of temporarily displaced persons by inserting section 4B.
Clause 5(3) Seeks to insert new section to provide for taxation of undistributed reserves.
Clause 5(4) Seeks to add Section to introduce Presumptive tax on any person engaged in the business of shipping.
Clause 5(5) Seeks to add new section to provide for tax on profit on debt.
Clause 5(6) Seeks to omit proviso to Clause (a), sub-section (2) of Section 12 and to make technical correction.
Clause 5(7) Seeks to substitute Section 15A to allow administration and collection charges as deductible expenses against "Income from Property".
Clause 5(8) Seeks to make a technical correction in Section 37A.
Clause 5(9)(a) Seeks to amend Sub- section (2) of Section 53 to make the amendments in Second Schedule liable to approval from the Economic Coordination Committee of the Cabinet.
Clause 5(9)(b) Seeks to insert new sub section to provide for automatic annulment of any notification after the expiry of the Financial Year in which it was issued.
Clause 5(10) Seeks to amend section 62 to amend the calculation of Tax credit for investment in shares and insurance.
Clause 5(11) Seeks to omit Section 64 and to add two new Sections 64A and 64B to provide for deductible allowances against Profit on debt and to introduce tax credit for employment generation by manufacturers respectively.
Clause 5(12) Seeks to amend Section 65 to exempt the tax credits under Sections 65B, 65D and 65E, from applicability of Section 169 and Section 113.
Clause 5(13) Seeks to increase the rate of tax credit for enlistment of companies.
Clause 5(14) Seeks to amend the calculation of tax credit for industrial undertakings established before the first day of July, 2011
Clause 5(15) Seeks to provide for taxation of dividend by non-resident company by make an amendment in Section 94.
Clause 5(16) Seeks to make technical amendment to section 100C.
Clause 5(17) Seeks to authorize Federal Government to enter into multilateral agreements and authorize exchange of information with other Governments.
Clause 5(18) Seeks to suspend operation of section 113A for taxation on builders for three years.
Clause 5(19) Seeks to provide the rates of Minimum Tax on land developers.
Clause 5(20) Seeks to make technical correction in Section 114 and to add a proviso to allow for revision of Returns within 60 days of filing of return without the approval of the Commissioner.
Clause 5(21) Seeks to provide for constitution of Special Audit Panel by amending Section 121.
Clause 5(22) Seeks to amend section 128 to authorize the Commissioner (Appeals ) to grant stay form recov eries for longer duration.
Clause 5(23) Seeks to amend due date of payment of tax.
Clause 5(24) Seeks to amend section 147 to requiring advance tax estimates by second quarter for rest of the year.
Clause 5(25) Seeks to withdraw power of Board to grant exemption on imports through SROs.
Clause 5(26) Seeks to add new section to stipulate tax on local purchases of cooking oil or vegetable ghee by certain persons.
Clause 5(27) Seeks to make technical correction in Section 151.
Clause 5(28) Seeks to amend Section 152 to authorize the Commissioner to allow payments to non- resident persons without deduction of tax or deduction at reduced rates in certain cases.
Clause 5(29)(a) Seeks to amend Section 153 to make technical collections regarding tax on payments for rendering or provision of services adjustable for companies.
Clause 5(29)(b) Seeks to make technical correction and to make the tax deducted on execution of contract by sportsperson, a final tax.
Clause 5(30) Seeks to amend section 154 by making the tax deductible under this section, minimum tax for the exporters who opt out of Final Tax Regime.
Clause 5(31) Seeks to withdraw power of Board to grant exemption on imports through SROs.
Clause 5(32) Seeks to reduce rates of additional tax.
Clause 5(33) Seeks to provide a new clause for furnishing of information by Financial Institutions regarding non-resident persons under bilateral agreement or multilateral convention.
Clause 5(34) `Seeks to amend Section 169 to make tax on local purchases of cooking oil or vegetable ghee by certain persons, a final tax.
Clause 5(35) Seeks to amend section 171 by amending the rate of additional payment for delayed refunds.
Clause 5(36) Seeks to amend Section 176 to authorize the Audit Panel to seek information etc.
Clause 5(37) Seeks to amend Section 177 to provide for appointment, constitution and working of audit panels.
Clause 5(38) Seeks to amend Section 181A to declare CNIC as National Tax Numbers for individuals.
Clause 5(39) Seeks to amend section 182 to change the amount of penalty for non filing of wealth Statement.
Clause 5(40) Seeks to make a technical correction in Section 195.
Clause 5(41) Seeks to amend Section 205 to reduce the amount of default surcharge.
Clause 5(42) Seeks to include The Special Audit Panel in Income Tax Authorities as provided in Section 207.
Clause 5(43) Seeks to substitute Sub-section (1B) of Section 210 to provide for delegation of powers to Special Audit Panel.
Clause 5(44) Seeks to make technical correction in Section 211.
Clause 5(45) Seeks to insert Section 214D to provide for automatic selection for audit.
Clause 5(46) Seeks to insert a new section to provide for a reward whistleblowers.
Clause 5(47) Seeks to make a technical amendment to sub-section (2) of Section 231A.
Clause 5(48)(a) Seeks to make a technical correction.
Clause 5(48)(b) Seeks to make a technical correction.
Clause 5(49)(a) Seeks to add two new sub sections Section 231B define the term "date of registration" and "motor vehicle" for the purposes of Income Tax Ordinance, 2001
Clause 5(49)(b) Seeks to make a technical correction.
Clause 5(50) Seeks to amend Section 234 to explain the term "Motor Vehicle".
Clause 5(51) Seeks to amend Section 236 to stipulate the taxation of internet usage not covered by Telephone Bills and Pre-paid cards.
Clause 5(52)(a) Seeks to make a technical correction and to add a proviso to exempt the routes of Baluchistan, AJ&K, FATA , Gilgit- Baltistan and Chitral from collection of Advance Tax on purchase of air ticket.
Clause 5(52)(b) Seeks to make a technical correction.
Clause 5(53) Seeks to make a technical correction.
Clause 5(54)(i) Seeks to amend Section 236H to exclude the "fertilizer" from its scope.
Clause 5(54)(ii) Seeks to further amend Section 236H to extend its applicability to wholesalers as well.
Clause 5(55) Seeks to amend Section 236 to exempt the non- residents from collection of Advance tax by education institutions on fee remitted from abroad.
Clause 5(56) Seeks to omit sub section (3) of Section 236K.
Clause 5(57) Seeks to add following new Sections:
i. 236O to consolidate the exemptions from Advance Tax provisions of Chapter XII of the Ordinance.
ii. Seeks to insert Section 236P to stipulate taxation of various banking transactions other than in cash made by non-filers.
iii. Seeks to add new Section 236Q to provide for taxation of the payments for use of machinery and equipment.
iv. Seeks to insert Section 236R to provide for collection of advance tax on fee remitted abroad.
v. Seeks to add Section 236S to introduce taxation of Dividend in Specie.
vi. Seeks to add Section 236T to stipulate collection of advance tax by Pakistan Mercantile Exchange Limited on sale and purchase of futures commodity contracts.
Clause 5(58)(A)(a)(i) Seeks to substitute the Income tax slabs in Para 1 for nonsalaried individuals and AOPs in the First schedule to reduce the tax rates.
Clause 5(58)(A)(a)(ii) Seeks to substitute the income tax slabs in Para 1A for salaried individuals to reduce the tax rates.
Clause 5(58)(A)(a)(iii) Seeks to make a technical correction.
Clause 5(58)(A)(b) Seeks to provide reduced rates of taxation for companies in First Schedule.
Clause 5(58)(A)(c) Seeks to provide rates of super tax.
Clause 5(58)(A)(d) Seeks to amend the rates of tax deducted on dividends and to provide for taxation of dividends received from Real Estate Investment Trust.
Clause 5(58)(A)(e) Seeks to add new division IIIA to provide the tax rates for profit on debt.
Clause 5(58)(A)(f) Seeks to amend the rates of tax deduction on capital gains on disposal of securities.
Clause 5(58)(A)(g) Seeks to amend Division IX to make the distributors and Dealers of fertilizers liable to Minimum Tax and to make a technical correction.
Clause 5(58)(B) Seeks to amend the rates of tax deduction on Imports.
Clause 5(58)(C)(a)(i) Seeks to provide rate of tax deduction on issuance of (ii) & (iii) Dividend, Dividends in Specie and Dividends issued by REIT and stock funds.
Clause 5(58)(C)(b) Seeks to stipulate higher rate of tax deduction on profit on debt for non filers.
Clause 5(58)(C)(c) Seeks to bring the rate of withholding tax under section 152 on Non residents on par with residents.
Clause 5(58)(C)(d) Seeks to amend the rate of tax deduction on payments for goods, services and contracts and to differentiate between filers and non filers.
Clause 5(58)(C)(e) Seeks to provide for higher rate of tax deduction on petroleum products for non filers.
Clause 5(58)(D)(a) Seeks to provide for higher rates of tax deduction on brokerage and commission for non filers.
Clause 5(58)(D)(b) Seeks to amend the rate of tax on motor vehicles and to provide for higher rates for non- filers.
Clause 5(58)(D)(c) Seeks to provide rate of tax deduction on internet usage not covered by telephone bills and pre paid cards.
Clause 5(58)(D)(d) Seeks to amend the rate of tax deduction on cash withdrawal.
Clause 5(58)(D)(e) Seeks to provide for higher rates for non filers on different bank transactions.
Clause 5(58)(D)(f) Seeks to provide for substituted rates of tax deduction on transfer of registration or ownership of motor vehicles.
Clause 5(58)(D)(g) Seeks to provide for rates of tax deduction on dealers and wholesalers in case of fertilizers.
Clause 5(58)(D)(h) Seeks to reduce the threshold for withholding tax on domestic electricity consumption.
Clause 5(58)(D)(i) Seeks to amend the rate of withholding tax on purchase of air tickets.
Clause 5(58)(D)(j) Seeks to provide for tax rates for withholding tax on banking transactions other than through cash, collection of tax by Pakistan Mercantile Exchange Limited, tax deduction on education related expenses remitted abroad and on Payment to residents for use of machinery and equipment.
Clause 5(59)(A)(i) Seeks to make technical amendments.
Clause 5(59)(A)(ii)&(iii) Seeks to grant exemption to the Indus Hospital, Karachi.
Clause 5(59)(A)(iv) Seeks to add a proviso to exempt the income of developmental REIT with the object of development and construction of residential buildings till 2020.
Clause 5(59)(A)(v) Seeks to subject the exemption allowed to inter-corporate dividend within the group companies entitled to group taxation to filing of return for that year.
Clause 5(59)(A)(vi) Seeks to make a technical amendment.
Clause 5(59)(A)(vii) Seeks to substitute the period of exemption for income derived by China Overseas Ports Holding Company Limited from Gwadar Port operations for a period of twenty three years.
Clause 5(59)(A)(viii) Seeks to make a technical amendment.
SClause 5(59)(A)(ix) eeks to insert new clauses to exempt the profits and gains of industrial undertakings engaged in "manufacturing of equipment, plant and machinery for renewable sources of energy", "Operating ware housing or cold chain facilities for storage of agriculture produce", "Operating halal meat production" and manufacturing unit set up in Khyber Pakhtunkhwa between 1st day of July, 2015 to 30th day of June, 201 and "transmission Line projects set up on or after 1st day of July, 2015".
Clause 5(59)(A)(x) Seeks to add new clauses to exempt the profits and gains of LNG terminal operators and owners for a period of five years and the income from social security contributions derived by Employees Social Security Institutions of all the provinces.
Clause 5(59)(B)(i) Seeks to make technical amendments.
Clause 5(59)(B)(ii) Seeks to add new clause to provide for reduced rates of tax deduction on cash withdrawal for exchange companies duly licensed by State Bank of Pakistan.
Clause 5(59)(c) Seeks to omit Clause(16) for technical reasons.
Clause 5(59)(D)(a) Seeks to make technical correction and to add sub clauses to extend the exemption from Section 113 to the following: Companies supplying coal exclusively to power generation projects in Sind, LNG terminal operators and owners, taxpayers located in most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA, taxpayers qualifying for exemptions under Clause 126I, 126J , 126K,and 126L.
Clause 5(59)(D)(b) Seeks to add new clause to exempt LNG terminal operators and owners from Alternate Corporate Tax.
Clause 5(59)(D)(c) Seeks to omit Clause ( 16A) for technical reasons.
Clause 5(59)(D)(d) Seeks to make technical corrections.
Clause 5(59)(D)(e) Seeks to withdraw exemption from withholding tax on imports on certain items from Chapter 27 & 99 of Pakistan Customs Tariff.
Clause 5(59)(D)(f) Seeks to make technical corrections.
Clause 5(59)(D)(g) Seeks to omit Clause (56H) for technical reasons.
Clause 5(59)(D)(h) Seeks to substitute the explanation in Clause (57) to clarify the conditions for exemption from Section 113 and 153 for inhouse preparation of food and allied items.
Clause 5(59)(D)(i)&(ii) Seeks to make technical corrections.
Clause 5(59)(D)(k) Seeks to grant exemption to certain Solar Devices.
Clause 5(59)(D)(l) Seeks to make technical corrections.
Clause 5(59)(D)(m) Seeks to extend exemption to green field industries.
Clause 5(59)(D)(n) Seeks to make technical corrections.
Clause 5(59)(D)(o) Seeks to add new clause to exempt the Withholding Tax on import of specified agricultural items and equipment use in aviation and export to taxpayers engaged in operating halal meat production.
Clause 5(60) Seeks to provide taxation of Insurance Companies in respect of Capital Gains and Super Tax.
Clause 5(61) Seeks to provide taxation of Petroleum and Mineral Excavation and Production Companies in respect of Capital Gains and Super Tax.
Clause 5(62) Seeks to tax income from dividends and Capital Gain for banking companies at tax rates for business income and provide for charge of super tax.
Clause 5(63) Seeks to provide for taxation of super tax on listed securities. 153
FEDERAL EXCISE ACT, 2005
Clause 6(2) Seeks to insert new clause to define whistle blower.
Clause 6(1)(a) Seeks to insert the commas and words "pursuant to the approval of the Economic Coordination Committee of Cabinet, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, removal of anomalies in taxes, development of backward areas and implementation of bilateral and multilateral agreements" after the word "may" in sub-section (2) in section 16.
Clause 6(1)(b) Seeks to omit sub-section (3) in section 16.
Clause 6(1)(c) Seeks to substitute the word, figure and brackets "subsection (2)" for the words, figures and brackets "sub-sections (2) and (3)" in sub-section (4) in section 16.
Clause 6(1)(d) Seeks to add new sub-sections (5) and (6) after the subsection (4) in section 16.
Clause 6(2) Seeks to insert the commas and words ", or otherwise" after the words "suo moto" in sub-section (1) in section 35.
Clause 6(4) Seeks to add a new section 42D for reward of whistle blowers.
Clause 6(3)(a) Seeks to insert the word and comma "barcodes," after the word "labels" in sub-section (2) in section 45A.
Clause 6(3)(b) Seeks to add new sub-section (3) after sub-section (2) in section 45A.
Clause 6(4)(a) Seeks to omit the word "Departmental" in the heading in section 46.
Clause 6(4)(b) Seeks to substitute the existing sub-section (4) in section 46.
Clause 6(4)(c) Seeks to insert sub-sections (5), (6), (7) and (8) and the existing sub-section (5) re-numbered as sub-section (9) after sub-section (4) in section 46.
Clause 6(5) Seeks to insert new sub-sections 47A and 47B after section 47.
Clause 6(6)(a)(i) Seeks to substitute the word "twelve" for the word "nine" in column (4) against serial numbers 4, 5 and 6 in column (1), in Table-1 in the First Schedule.
Clause 6(6)(a)(ii) Seeks to substitute the existing serial numbers 9 and 10 and the corresponding entries relating thereto in columns (2), (3) and (4) in column (1) in Table-1 in the First Schedule.
Clause 6(6)(iii) Seeks to add new serial number and entries relating thereto in columns (2), (3) and (4) after serial number 55 in column (1) in Table-1 in the First Schedule.
Clause 6(6)(b)(i) Seeks to omit sub-clause (iii) and the entry relating thereto in column (4), in clause (a), in column (2) against serial number 3 in column (1) in Table-II in the First Schedule.
Clause 6(6)(b)(ii) Seeks to substitute the expression "as defined in S. No. 9 of Table-II of the Third Schedule" for the expression ", and socio-economic routes means journeys along the Balochistan coastal belt" in the Explanation omitted as aforesaid, after sub-clause (iii) in clause (a), in column (2), against serial number 3, in column (1) in Table-II in the First Schedule.
Clause 6(7)(a) Seeks to add new serial numbers 18 and 19 and the corresponding entries in columns (2) and (3) after serial number 17, in column (1), in Table-1 in the Third Schedule.
Clause 6(7)(b) Seeks to add new serial numbers 9, 10, 11 and 12 and the corresponding entries relating thereto in columns (2) and (3) after omitted serial number 8, in column (1), in Table-II in the Third Schedule.
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