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, 2021, and to amend certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:-
(2) It shall, unless specified otherwise, come into force on the first day of July, 2021.
(1) in section 2,-
(a) in clause (kka), for the expression "bill of lading, airway bill", the expression "master bill of lading, bill of lading, airway bill, certificate of origin" shall be substituted;
(b) after clause (kkb), the following new clause shell be added, namely:- "(kkc) "Electronic assessment" means assessment of a goods declaration in Customs Computerized System by an officer of Customs or by the computerized system according to the selectivity criteria;";
(c) after clause (lc), the following new clause shall be added, namely:-
"(Id) "Vessel Intimation Report (VIR)" means an intimation regarding impending arrival of a vessel at a customs sea port, where the customs computerized system is operational, to the customs authorities in the form and manner, by the carrier or his agent, as may be prescribed by rules;";
(d) after clause (o), the following new clause shall be inserted, namely:- "(oo) "owner" of goods includes any person who is for the time being entitled, either as owner or agent for the owner, to the possession of the goods;"; and
(e) in clause (s), after the word "concealing", the expression ", retailing" shall be inserted;
(2) after section 3CCA, the following new section shall be added, namely:-
"3CCB. Directorate General of National Nuclear Detection Architecture.- The Directorate General of National Nuclear Detection Architecture shall consist of a Director General and as many Deputy Director Generals, Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.";
(3) after section 3CCB, the following new section shall be added, namely:-
"3CCC. Directorate General of Marine.- The Directorate General of Marine shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.";
(4) for section 12, the following shall be substituted, namely:-
"12. Power to appoint or licence public warehouses.-(1) At any
warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time, appoint or licence public warehouses wherein dutiable goods may be deposited without payment of customs- duty.
(2) Every application for a licence for a public warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:
Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.
(3) A licence granted under this section may be cancelled by the respective Collector of Customs in his own jurisdiction for infringement of any condition laid down in the licence or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.
(4) Pending consideration whether a licence be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend the licence.";
(5) after section 12, the following new section shall be added, namely:-
"12A. Power to appoint or licence common warehouses - (1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time, appoint or licence common warehouses wherein dutiable goods may be deposited without payment of customs-duty on owner or licensee own account.
(2) Every application for a licence for a common warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:
Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.
(3) A licence granted under this section may be cancelled by the respective Collector of Customs in his own jurisdiction for infringement of any condition laid down in the licence or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.
(4) Pending consideration whether a licence be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend the licence.";
(6) for section 13, the following shall be substituted, namely:-
"13. Power to licence private warehouses.-(1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time, licence private warehouses wherein dutiable goods may be deposited without payment of customs-duty.
(2) Every application for a licence for a private warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:
Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.
(3) A licence granted under this section may be cancelled by the Collector of Customs in his own jurisdiction for infringement of any condition laid down in the licence or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.
(4) Pending consideration whether a licence may be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend that licence.";
(7) in section 18E, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided further that the Board may constitute a committee or a centre for the purpose of settlement of disputes regarding classification of goods and may prescribe rules or procedure for carrying out the purpose of this section.";
(8) in section 19, in sub-section (5), in the second proviso, for the figure "2021 ", the figure "2022" shall be substituted;
(9) in section 25, in sub-section (9), after the word "determined" occurring for the second time, the words "using reasonable means" shall be inserted.
(10) in section 25A,
(a) in sub-section (1),-
(i) after the word "section", the expression "the Collector of Customs on his own motion or" shall be inserted; and
(ii) for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that notwithstanding anything contained in any provision of this Act and any decision or judgment of any forum, authority or court, while determining the customs value under this section, the Director may incorporate values from internationally acclaimed publications, periodicals, bulletins or official websites of manufacturers or indenters of such goods.";
(b) after sub-section (2), the following new sub-section shall be added, namely:-
"(2A) In case of any conflict in the customs value determined under sub-section (1), the Director General of Valuation shall determine the applicable customs value."; and
(c) in sub-section (4), after the expression "(1)", the expression " ,or the case may be under sub-section (2A)" shall be inserted;
(11) in section 25C, for the word "Board", the words "respective Chief Collector" shall be substituted;
(12) for section 25D, the following shall be substituted, namely:-
"25D. Review of the value determined - Notwithstanding the provision contained in section 25A, the Director General Valuation may on his own motion or in pursuance to a review petition made to him within thirty days from the date of determination by any person or an officer of Customs may rescind or determine the value afresh:
Provided that the proceedings so initiated shall be completed within sixty days of the filing of the review petition or initiation of proceedings as the case may be.";
(13) in section 27A, after the word "owner", the expression ",to be made before the filing of goods declaration," shall be inserted;
(14) in section 30, for the first proviso, the following shall be substituted, namely:-
"Provided that, where a goods declaration has been manifested in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the goods declaration is manifested under section 79 or section 104, as the case may be, except for those goods declaration in respect of which the rate of duty change after the submission of the goods declaration and before the berthing or cross-over event of the vessel or the vehicle respectively, as the case may be, the relevant date in which case, for the purposes of this section, shall be the date on which the vessel has berthed or the vehicle has crossed-over the border, as the case may be.";
(15) in section-32, in sub-section (3A), in first proviso, for the words "one hundred", the words "twenty thousand" shall be substituted.
(16) in section 32C, in sub-section (1), for the second proviso, the following shall be substituted, namely:-
"Provided further that Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.";
(17) for section 44, the following shall be substituted, namely:-
"44. Delivery of import manifest in respect of a conveyance other than a vessel.-The person-in-charge of a conveyance other than a vessel shall before arrival or as per following timelines, after arrival thereof at a land customs-station or customs-airport, as the case may be, deliver or file electronically an import manifest to appropriate officer of Customs:
(a) for customs airport: within three hours of landing; and
(b) for land Customs-station: at the time of entry into the country as prescribed under the rules.";
(18) in section 45,-
(a) in sub-section (2), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that before the berthing of the vessel or the crossover of the vehicle, as the case may be, the person incharge of a conveyance or his duly authorized agent may amend the import manifest subject to the rules notified by the Board."; and
(b) sub-section (3) shall be omitted;
(19) in section 79, in clause (a), the word "and" at the end, shall be omitted and thereafter, the following new clause shall be added, namely:-
"(aa) the documents mandatory for assessment of the goods, shall be uploaded by the importer or his agent with the goods declaration, as may be prescribed by the Board; and";
(20) in section 80, in sub-section (4), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided further that in case of clearance of goods declaration through green channel, the goods may be examined with the prior approval of the Collector of Customs.";
(21) in section 82, in clause (c), after colon at the end, the following new proviso shall be added, namely:-
"Provided that Collector of Customs may direct the importer or in case importer is not traceable, the shipping line to re-export out of Pakistan any goods, banned or restricted through a notification issue by the Federal Government, if the same are not cleared or auctioned within sixty days of the date of their arrival:";
(22) in section 83B, after the word "to", the word "outright" shall be inserted;
(23) in section 88, for sub-section (5), the following shall be substituted, namely:-
"(5) If the quantity or value of any goods has been incorrectly stated in the goods declaration, due to inadvertence or bona fide error, the Collector of Customs may, for reasons to be recorded in writing, direct the correction of the said error.";
(24) in section 98, in sub-section (1), for clause (a), the following shall be substituted, namely:-
"(a) by the Collector of Customs, for a period not exceeding six months; and";
(25) in section 131, in sub-section (2), in the second proviso, the expression ", where Customs Computerized System has not been introduced" shall be omitted;
(26) in section 155F, in clause (c), in the first proviso, for the words "after recording reasons in writing", the expression "after giving notice and affording reasonable opportunity of being heard," shall be substituted;
(27) in section 155R, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that in case where any clerical or typographical error is noted in goods declaration except as provided in section 29 of this Act, the exporter or importer may apply to the concerned officer not below the rank of Assistant Collector for issuance of correction or corrigendum certificate and the concerned officer upon his satisfaction may issue such certificate for subsequent correction in the computerized goods declaration.";
(28) in section 156, in sub-section (1), in the Table, in column zero,-
(a) against S.No.1,-
(i) in sub-serial No.(ii), for entry in column (2), the following shall be substituted, namely:-
======================================================such person shall be liable to a penalty as under:-======================================================1st time Rs 100,000/-2nd time Rs 500,000/-3rd time Rs1,000,000/-4th time outright confiscation of goods and blockage of WeBOC user ID for one year,";======================================================(ii) after sub-serial number (ii), amended as aforesaid, the following new serial number and entries thereto in column (1), (2) and (3), shall be inserted, namely:-
=====================================================================" (iii) If any person such person shall be liable to a penalty fails to attach as under:- or 1st time electronically 2nd time upload 3rd time mandatory 4th time documents required under 5th time Rs.250,000/-, section 79 or and 131 of the onwards, Customs Act, 1969-,=====================================================================(b) S.No. 47A, and entries related thereto in column (1), (2) and (3) shall be omitted;
(c) against S.No.89, in the sub-serial number (i), in column (1), after the word "concealing", the expression ", retailing" shall be inserted;
(d) against S.No.90, in column (1), after the word concealing, the expression ", retailing" shall be inserted;
(29) in section 157, in sub-section (2), in the proviso, for the full stop a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided further that where a conveyance liable to confiscation has been seized for the third time, no option to pay fine in lieu of the confiscation shall be given.";
(30) in section 179, in sub-section (3), in the second proviso, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided further that in cases where in goods are lying at sea-port, airport or dryport, these shall be decided within thirty days of the issuance of show cause notice which can be extended by another fifteen days by Collector of Customs, if required so.".
(31) in section 195, for marginal note and for sub-section (1), the following shall be substituted, namely:-
"195. Powers of Board or Chief Collector or Collector to pass certain orders.- (1) The Board or the Chief Collector or the Collector of Customs may, within his jurisdiction, call for and examine the records of any proceedings under this Act for the purpose of satisfying itself or, as the case may be, himself as to the legality or propriety of any decision or order passed by a subordinate officer:";
(32) in section 196, in sub-section (1), for the word "Additional", wherever occurring, the word "Deputy" shall be substituted;
(33) in section 202B, for title and for sub-section (1), the following shall be substituted, namely:-
"202B. Reward to officers and officials of Customs and Law Enforcement Agencies.-(1) In cases involving evasion of customs-duty and other taxes and confiscation of goods, cash reward shall be sanctioned to the officers of Customs Service of Pakistan, as defined under the Occupational Groups and Services (Probation, Training and Seniority) Rules, 1990 and officials including officers and officials of other law enforcement agencies, who assist Customs officers and officials or are actually instrumental in seizure of smuggled goods and vehicles as confirmed by the respective Collectorate of Customs, for their meritorious conduct in such cases, and to the informer providing credible information leading to such confiscation or detection, as may be prescribed by rules by the Board, only after realization of part or whole of the duty and taxes involved in such cases.";
(34) in section 212B, in sub-section (5), for the words "one year" , the words "three years" shall be substituted;
(35) in the First Schedule, -
(i) in Sub-Chapter-V, in the title, after the word "AREA", the expression "OR SPECIAL TECHNOLOGY ZONES (STZ) OR AUTHORIZED UNDER EXPORT FACILITATION SCHEMES," shall be added; and
(ii) 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
(36) the Fifth Schedule to the Customs Act, 1969 (IV of 1969), shall be substituted in the manner provided for in the Second Schedule to this Act.
(1) in section 2,-
(a) after clause (4A), the following new clause shall be inserted, namely:-
"(4AA) "Commissioner (Appeals)" means Commissioner of Inland Revenue (Appeals) appointed under section 30;";
(b) in clause (5AB), in sub-clause (d), for the word "three", the word "ten" shall be substituted;
(c) after clause (18), the following new clause (18A) shall be inserted, namely:-
"(18A) "online market place" includes an electronic interface such as a market place, e-commerce platform, portal or similar means which facilitate sale of goods, including third party sale, in any of the following manner, namely:-
(a) by controlling the terms and conditions of the sale;
(b) authorizing the charge to the customers in respect of the payment for the supply; or
(c) ordering or delivering the goods.";
(d) in clause (37), in sub-clause (iii), after the word "falsification", the word "of" shall be inserted;
(e) in clause (43A),
(i) in sub-clause (e), after the word "more", the words "or two thousand square feet in area or more in the case of retailer of furniture" shall be inserted;
(ii) after sub-clause (e), the word "and" shall be omitted and thereafter following new clauses (f) and (g) shall be inserted, namely:-
"(f) a retailer operating an online market place supplying goods through e-commerce platform, whether or not the goods are owned by him;
(g) a retailer who has acquired point of sale for accepting payment through debit or credit cards from banking companies or any other digital payment service provider authorized by State Bank of Pakistan; and"
(iii) existing sub-clause (f) shall be renumbered as (h); and
(f) in clause (44), in sub-clause (a), the words "or the time when any payment is received by the supplier in respect of that supply, whichever is earlier" shall be omitted;
(2) in section 3,-
(a) in sub-section (1B), in clause (a), for the word "on", occurring for the second time, the word "or" shall be substituted;
(b) in sub-section (3),-
(i) after clause (a), the word "and" shall be omitted;
(ii) after clause (b), full stop at the end shall be omitted and the expression "; and" shall be inserted and thereafter the following new clause shall be inserted, namely:-
"(c) in the case of supply of goods through online market place, of the person running online market place, whether or not the goods are owned by him.";
(c) in sub-section (9A), first proviso shall be omitted;
(3) in section 8B, in sub-section (1), after the word "person", the words "other than public limited companies listed on Pakistan Stock Exchange" shall be inserted.
(4) in section 11, in sub-section (5), for the words "relevant date", the words "end of the financial year in which the relevant date falls" shall be substituted;
(5) after section 21A, the following new section shall be inserted,-
"21B. Common Identifier Number.- (1) From the tax period July 2021 and onward, in the case of individual, having Computerized National Identity Card (CNIC) issued by the National Database and Registration Authority (NADRA), registered or liable to be registered under the provisions of section 14, CNIC shall be common identifier number in addition to sales tax registration number (STRN).
(2) From the tax period July 2021 and onward, in the case of association of persons or company, having National Tax Number (NTN), registered or liable to be registered under the provisions of section 14, NTN shall be common identifier number in addition to sales tax registration number (STRN).";
(6) in section 22, in sub-section (1),-
(a) in clause (e), after the word "bills" occurring for second time, the expression "cash book," shall be inserted; and
(b) after clause (ea), the following new clause (eb) shall be inserted, namely:-
"(eb) Electronic version of records mentioned in clauses (a) to (ea) of this sub-section.".
(7) in section 25AA, the existing sub-section shall be renumbered as subsection (1) and thereafter the following new sub-section (2) shall be added, namely:-
"(2) The Board may, by notification in official gazette, prescribe rules for carrying out the purpose of sub-section (1).";
(8) after omitted section 26A, the following new section 26AB shall be inserted, namely:-
"26AB. Extension of time for furnishing returns. (1) A registered person required to furnish a return under section 26 may apply, in writing, to the Commissioner for an extension of time to furnish the return.
(2) An application under sub-section (1) shall be made by the due date for furnishing the return in terms of section 2(9) for the period to which the application relates.
(3) Where an application has been made under sub-section (1) and the Commissioner is satisfied that the applicant is unable to furnish the return to which the application relates by the due date because of-
(a) absence from Pakistan;
(b) sickness or other misadventure; or
(c) any other reasonable cause, the Commissioner may, by order in writing, grant the applicant an extension of time for furnishing the return.
(4) An extension of time under sub-section (3) shall not exceed fifteen days from the due date for furnishing the return, unless there are exceptional circumstances justifying a longer extension of time:
Provided that where the Commissioner has not granted extension for furnishing the return under sub-sections (3) or (4), the Chief Commissioner may on an application made by the registered person for extension or further extension, as the case may be, grant extension or further extension for a period not exceeding fifteen days, unless there are exceptional circumstances justifying a longer extension of time.
(5) An extension or further extension of time granted under subsections (3) or (4), as the case may be, shall not, for the purpose of charge of default surcharge under section 34, change the due date for payment of sales tax under section 6.";
(9) In section 40D, in sub-section (5), after the expression "Gilgit-Baltistan,", the words "Border Sustenance Markets and" shall be inserted;
(10) after section 40D, the following new section 40E shall be inserted, namely: -
"40E. Licensing of brand name.- (1) Manufacturers of the specified goods shall be required to obtain brand licence for each brand or stock keeping unit (SKU) in such manner as may be prescribed by the Board.
(2) Any specified brand and SKU found to be sold without obtaining a licence from the Board shall be deemed counterfeit goods and liable to outright confiscation and destruction in the prescribed manner and such destruction and confiscation shall be without prejudice to any other penal action which may be taken under this Act.";
(11) in section 48, after sub-section (2), the following new sub-section (3) shall be added, namely:-
"(3) The provision of sub-sections (1) and (2) shall mutatis mutandis apply regarding assistance in collection and recovery of taxes in pursuance of a request from a foreign jurisdiction under a tax treaty, bilateral or a multilateral convention, and inter-governmental agreement or similar agreement or mechanism.";
(12) in section 50, in sub-section (2), after the word "price", the words "or may be placed regularly on the official website maintained by the Board" shall be inserted;
(13) in section 56A,-
(i) in the title, after the word "information", the words "or assistance in recovery of taxes" shall be inserted;
(ii) after sub-section (1), the following new sub-section (1A) shall be inserted, namely:-
"(1A) Notwithstanding anything contained in this Act, the Board shall have power to share data or information including real time data videos, images received under the provisions of this Act with any other Ministry or Division of the Federal Government or Provincial Government, subject to such limitations and conditions an may be specified by the Board."; and
(iii) after sub-section (2), the following new sub-section (3) shall be added, namely:-
"(3) The Federal Government may enter into bilateral or multilateral convention, and inter-governmental agreement or similar agreement or mechanism for assistance in the recovery of taxes.";
(14) in section 56C, the existing sub-section shall be renumbered as sub-section (1) and thereafter the following new sub-section shall be added, namely:-
"(2) The Board may prescribe procedure for "mystery shopping" in respect of invoices issued by tier-1 retailers integrated with FBR online system randomly and in case of any discrepancy, all the relevant provisions of this Act shall apply accordingly.";
(15) in section 67, in first proviso at the end for full stop at the end a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided further that where a refund due in the consequence of any order passed under section 66 is not made within forty five days of date of such order, there shall be paid to the claimant in addition to the amount of the refund due to him, a further sum equal to KIBOR per annum of the amount of refund, due from the date of the refund order.";
(16) in section 73, in sub-section (1), after the first proviso, the following new proviso shall be added, namely:-
"Provided further that adjustments made by a registered person in respect of amounts payable and receivable to and from the same party shall be treated as payments satisfying the provisions of this sub-section subject to following conditions, namely:-
(a) sales tax has been charged and paid by both parties under the relevant provisions of this Act and rules prescribed thereunder, wherever applicable; and
(b) the registered person has sought prior approval of the Commissioner before making such adjustments.";
(17) in section 76, the existing sub-section shall be renumbered as sub-section (1) and thereafter the following new sub-section (2) shall be added, namely:-
"(2) The Board may authorize and prescribe the manner in which fee and service charges collected under sub-section (1) shall be expended.";
(18) in the Third Schedule, in column (1), after serial number 49, the following new serial number 50 and entries relating thereto in columns (2) and (3) shall be added, namely:-
========================================================================================"50. Sugar except where it is supplied as Respective heading"; an industrial raw material to pharmaceutical, beverage and confectionery industries========================================================================================(19) in the Fifth Schedule, in the Table, in column (1), -
(a) Serial No. 1, 6, 10 and 11 and entries relating thereto in column (2) shall be omitted; and
(b) in the Fifth Schedule, after S. No. 14, in column (1) and entries relating thereto in column (2), the following new S. No. 15 shall be added, namely:-
================================================================================"15. Local supplies of raw materials, components, parts and plant and machinery to registered exporters authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions.";================================================================================(20) in the Sixth Schedule,-
(a) in Table-1, in column (1),-
(i) Serial No. 11, 19, 22, 24, 26, 27, 29, 29C, 73A, 74, 75, 76, 77, 78, 79, 80, 82, 83, 84, 85, 91, 93, 101, 103, 106, 108, 115, 123, 124, 125, 128 and 153 and entries relating thereto in columns (2) and (3) shall be omitted;
(ii) in serial No. 137,-
(a) in column (2), after expression "g/m2", the words "art paper and printing paper" shall be inserted; and
(b) in column (3), after the figure "4802.5510", the expression ",4810.1990, 4810.1910 and 4802.6990" shall be inserted;
(iii) after serial No. 156 and entries relating thereto in columns (2) and (3), the following new serial Nos. shall be added, namely:-
==========================================================================================="157. Import of CKD (in kit form) of Respective following electric vehicles (4 headings wheelers) by local manufacturers till 30th June, 2026 (i) Small cars/SUVs with 50 Kwh battery or below; and (ii) Light commercial vehicles (LCVs) with 150 kwh battery or below158 Goods temporarily imported Respective into Pakistan by International headings Athletes which shall be subsequently taken by them within 120 days of temporary import159 Import of auto disable Syringes till 30th June, 2021 (i) with needles 9018.311 (ii) without needles 9018.312160 Import of following raw materials for the manufacturers of auto disable syringes till 30th June, 2021 (i) Tubular metal needles 9018.32 (ii) Rubber Gaskets 4016.931161 Import of plant, machinery, Respective equipment and raw materials headings for consumption of these items within Special Technology Zone by the Special Technology Zone Authority, zone developers and zone enterprises162 Import of raw materials, Respective components, parts and plant headings and machinery by registered persons authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions.";===========================================================================================(b) in table -2, in colums (1), -
(i) serial Nos. 17, 19, 24 and 25 and entries relating thereto in columns (2) and (3) shall be omitted;
(ii) after serial number 25, the following new serial number 26 and entries relating thereto in columns (2) and (3) shall be added, namely:-
==============================================================================="26. Supply of locally Respective heading produced silos till 30.06.202627 Eggs including eggs for 0407.1100, 0407.1900 hatching 0407.2100 and 0407.290028 Cereals and products of 1001.1000, 1001.9000, milling industry excluding 1002.0000, 1003.0000, the products of milling 1004.0000, 1005.1000, industry, other than wheat 1005.9000, 1006.1090, and meslin flour, as sold 1006.2000, 1006.3010, in retail packing bearing 1006.3090, 1006.4000, brand name or a 1007.0000, 1008.1000, trademark 1008.2000, 1008.3000, 1008.9000, 1101.0010, 1101.0020, 1102.2000, 1102.9000, 1103.1100, 1103.1300, 1103.1900, 1104.2200, 1104.2300, 1104.2900 and 1104.300029 Sugar beet 1212.910030 Fruit juices, whether 2009.1100, 2009.1200, fresh, frozen or otherwise 2009.1900, 2009.2100, preserved but excluding 2009.2900, 2009.3100, those bottled, canned or 2009.3900, 2009.4100, packaged. 2009.4900, 2009.5000, 2009.6100, 2009.6900, 2009.7100, 2009.7900, and 2009.900031 Milk and cream, 04.02 concentrated or containing added sugar or other sweetening matter, excluding that sold in retail packing under a brand name32 Flavored milk, excluding 0402.9900 that sold in retail packing under a brand name33 Yogurt, excluding that 0403.1000 sold in retail packing under a brand name34 Whey, excluding that sold 04.04 in retail packing under a brand name35 Butter, excluding that sold 0405.1000 in retail packing under a brand name36 Desi ghee, excluding that 0405.9000 sold in retail packing under a brand name37 Cheese, excluding that 0406.1010 sold in retail packing under a brand name38 Processed cheese not 0406.3000 grated or powdered, excluding that sold in retail packing under a brand name39 Sausages and similar 1601.0000 products of poultry meat or meat offal excluding sold in retail packing under a brand name or trademark40 Products of meat or meat 1602.3200, 1602.3900, offal excluding sold in 1602.5000, 1604.1100, retail packing under a 1604.1200, 1604.1300, brand name or trademark 1604.1400, 1604.1500, 1604.1600, 1604.1900, 1604.2010, 1604.2020 and 1604.209041 Preparations suitable for 1901.1000 infants, put up for retail sale42 Fat filled milk excluding 1901.9090"; that sold in retail packing under a brand name or a trademark===============================================================================(c) after Table-3, the following new Table shal
"Table-4
The goods specified in column (2) of the Annexure below falling under the PCT codes specified in column (3) of the said Annexure, when supplied within the limits of the Border Sustenance Markets, established in cooperation with Iran and Afghanistan, shall be exempted from the whole of the sales tax, subject to the following conditions, namely:-
(i) Such goods shall be supplied only within the limits of Border Sustenance Markets established in cooperation with Iran and Afghanistan;
(ii) If the goods, on which exemption under this Table has been availed, are brought outside the limits of such markets, sales tax shall be charged on the value assessed on the goods declaration import or the fair market value, whichever is higher;
(iii) Such items in case of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of sales tax involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction;
(iv) The said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets; and
(v) Breach of any of the conditions specified herein shall attract relevant legal provisions of this Act, besides recovery of the amount of sales tax alongwith default surcharge and penalties involved.
=============================================================================== Annexure=============================================================================== Heading Nos of the FirstS.No Description Schedule to the Customs Act, 1969 (IV of 1969)===============================================================================(1) (2) (3)===============================================================================1 Seed (Potatoes) 0701.10002 Tomatoes, fresh or chilled 0702.00003 Onions and shallots 0703.10004 Garlic 0703.20005 Cauliflowers cabbage 0704.90006 Carrots and turnips 0706.10007 Cucumbers and gherkins fresh or 0707.0000 chilled8 Peas (pisum sativum) 0708.10009 Beans (vigna spp., phaseolus 0708.2000 spp.)10 other leguminous vegetables 0708.900011 Peas (Pisum sativum) 0713.100012 Grams (Dry/Whole) 0713.201013 Dried leguminous vegetables 0713.2090, 0713.909014 Beans of the species Vigna 0713.3100 mungo (L.) Hepper or Vigna radiata (L.) Wilczek15 Small red (Adzuki) beans 0713.3200 (Phaseolus or Vigna angularis)16 Kidney beans including white 0713.3300 beans17 Bambara vigna subteranea or 0713.3400 vaahdzeia subterrea18 Beans vigna unguiculata 0713.350019 Other 0713.399020 Lentils (Dry/Whole) 0713.401021 Broad beans (Vicia faba var. 0713.5000 major) and horse beans (Vicia faba var. equina, Vicia faba var. minor)22 Pigeon peas (cajanus cajan) 0713.600023 Vanilla (Neither crushed nor 0905.1000 ground)24 Cinnamon 0906.110025 Other (Cinnamon And Cinnamon 0906.1900 Tree Flowers)26 Neither crushed nor ground 0907.1000 (Cloves)27 Crushed or ground (Cloves) 0907.200028 Neither Crushed nor ground 0908.1100 (Nutmeg)29 Crushed or ground (Nutmeg) 0908.120030 Neither crushed nor ground 0908.2100 (Maze)31 Crushed or ground (Maze) 0908.220032 Large (Cardammoms) 0908.311033 Small (Cardammoms) 0908.312034 Crushed or ground 0908.3200 (Cardammoms)35 Neither crushed nor ground 0909.2100 (Coriander)36 Crushed or ground (Coriander) 0909.220037 Neither crushed nor ground 0909.3100 (Seeds of Cumins)38 Crushed or ground (Seeds of 0909.3200 Cumins)39 Neither crushed nor ground 0909.6100 (Seeds of Anise, Badian, Caraway, Fennel etc)40 Crushed or ground (Seeds of 0909.6200 Anise, Badian, Caraway, Fennel etc)41 Thyme; bay leaves 0910.991042 Barley (Seeds) 1003.1000, 1003.900043 Sunflower seeds ,whether or not 1206.0000 broken44 Locust beans 1212.920045 Cereal straws and husks 1213.000046 Knives and cutting blades for 8208.9010 paper and paper board47 Of a fat content, by weight, not 0401.1000 exceeding 1 % (milk and cream)48 Of a fat content, by weight, 0401.2000 exceeding 1 % but not exceeding 6 % (milk and cream)49 Of a fat content, by weight, 0401.4000 exceeding 6 % but not exceeding 10% (Milk and Cream)50 Of a fat content, by weight, 0401.5000 exceeding 10 % (Milk and Cream)51 Leeks and other alliaceous 0703.9000 vegetables52 Cauliflowers and headed 0704.1000 broccoli53 Brussels sprouts 0704.200054 Cabbage lettuce (head lettuce) 0705.110055 Lettuce 0705.190056 Chicory 0705.2100, 0705.290057 Fruits of the genus Capsicum or 0709.6000 of the genus Pimenta58 Figs 0804.200059 Fresh (grapes) 0806.100060 Dried (Grapes) 0806.200061 Melons 0807.1100, 0807.190062 Apples 0808.100063 Green Tea 0902.100064 Other Green Tea 0902.200065 Crushed or ground (Ginger) 0910.120066 Turmeric (curcuma) 0910.300067 Other (spice) 0910.999068 Lactose (Sugar) 1702.111069 Sugar Syrup 1702.112070 Sugar Other 1702.190071 Caramel 1702.902072 Oil-cake and other solid residues, 2304.0000 whether or not ground or in the form of pellets, resulting from the extraction of soya bean oil.73 Other (animal feed) 2309.900074 For Sewing (Thread) 5204.201075 For embroidery (Thread) 5204.202076 Spades and shovels 8201.100077 Tools for masons, watchmakers, 8205.5900 miners and hand tools nes78 For kitchen appliances or for 8208.3000 machines used by the food industry79 Other kitchen appliances 8208.909080 Yogurt 0403.100081 Other (Potatoes) 0701.900082 Sweet corn 0710.400083 Mixtures of vegetables 0710.900084 Fresh (Dates) 0804.101085 Dried (Dates) 0804.102086 Apricots 0809.100087 Sour cherries (Prunus cerasus) 0809.210088 Other (Apricots) 0809.290089 Peaches, including nectarines 0809.300090 Plums and sloes 0809.400091 Strawberries 0810.100092 Kiwi Fruit 0810.500093 Neither crushed nor ground 0910.1100 (Ginger)94 Wheat and Meslin (Other) 1001.190095 Wheat and Meslin (Other) 1001.990096 Of Wheat (Flour) 1101.001097 Of Meslin 1101.002098 Vermacelli 1902.192099 Other (Packed Cake) 1905.9000100 Homogenised perparations 2007.1000101 Citrus Fruit 2007.9100102 Other (jams) 2007.9900103 Organic surface-active products 3401.3000 and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap104 Preparations put up for retail 3402.2000 sale105 Other (washing preparations) 3402.2000106 Tableware and kitchenware of 6911.1090 porcelain or china107 Household articles nes & toilet 6911.9000 articles of porcelain or china108 Glassware for table or kitchen 7013.4900 purposes (excl. glass having a linear c109 Glassware nes (other than that of 7013.9900 70.10 or 70.18)110 Spoons 8215.9910111 Tableware articles not in sets and 8215.9990 not plated with precious metal112 Bicycles and other cycles 8712.0000 (including delivery tricycles), not motorised113 Vacuum flasks 9617.0010114 Vacuum flasks/vacuum vessels 9617.0020."; complete w/cases; parts o/t glass inners (others)===============================================================================(21) in the Eighth Schedule, in Table-1, in column (1),-
(a) Serial No. 1, 5, 6, 7, 8, 9, 10, 11, 14, 15, 19, 20, 22, 29, 45, 50, 51, 60, 61, 62, 63, 65 and 67 and entries relating thereto in columns (2),
(3) , (4) and (5) shall be omitted;
(b) against serial number 56,-
(i) in column (4), for the figure "80", the figure "90" shall be substituted; and
(ii) in column (5), for the figure "70", the figure "90" shall be substituted;
(c) after serial number 70, the following new Serial Nos. and entries relating thereto in columns (2), (3), (4) and (5) shall be added, namely:-
===================================================================================================================================="71. Following locally Respective 1% If supplied manufactured or heading locally assembled electric vehicles (4 wheelers) till 30th June, 2026: (i) Small cars/ SUVs with 50 Kwh battery or below; and (ii) Light commercial vehicles (LCVs) with 150 kwh battery or below72. Motorcars 87.03 12.5% Locally manufactured or assembled motorcars of cylinder capacity upto 850cc73. Import and local supply of Hybrid Electric Vehicles: (a) Upto 1800 cc 87.03 8.5%". (b) From 1801 cc to 87.03 12.75% 2500 cc====================================================================================================================================(22) in the Ninth Schedule, after Table-I, the following proviso and explanation shall be added, namely:-
"Provided that the provisions of Table-I shall not be applicable from 1st July, 2020 onwards.
Explanation.- For removal of doubt, it is clarified that the above amendment in law shall not prejudicially affect, the Board's stance or position in pending cases on the issue of chargeability of sales tax on SIM cards before any court of law.";
(23) in the Eleventh Schedule, in the Table, after S. No. 6, in column (1), the following new S. No. 7 and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely:-
======================================================================================================================" 7. Registered Persons supplying Whole of the sales tax persons reclaimed lead or applicable". manufacturing used lead batteries lead batteries======================================================================================================================(24) in the Twelfth Schedule, in clause (2), after sub-clause (x), under Procedure and conditions, the following new clauses shall be added, namely: - "(xi) Electric vehicles (4 wheelers) CKD kits for small cars/SUVs, with 50 kwh battery or below and LCVs with 150 kwh battery of below till 30th June, 2026;
(xii) Electric vehicles (4 wheelers) small cars/SUVs, with 50 kwh battery or below and LCVs with 150 kwh battery of below in CBU condition till 30th June, 2026";
(xiii) Electric vehicles (2-3 wheelers and heavy commercial vehicles) in CBU condition till 30th June, 2025; and
(xiv) motor cars of cylinder capacity upto 850cc
Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (1) in section 3, after sub-section (1), the following new sub -section (1A) shall be inserted, namely:-
"(1A) Notwithstanding the provision of sub-section (1), the export of services shall be charged at the rate of zero per cent."
Amendments of Income Tax Ordinance, 2001 (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) in clause (1B), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(B) after clause (10), the following new clause shall be inserted, namely:-
"(10A) "business bank account" means a bank account utilized by the taxpayer for business transaction declared to the Commissioner through original or modified registration form prescribed under section 181;";
(C) clause (13AA) shall be re-numbered as clause (13AB) and after clause (13A), the following new clause shall be inserted, namely:-
"(13AA) concealment of income includes -
(a) the suppression of any item of receipt liable to tax in whole or in part, or failure to disclose income chargeable to tax;
(b) claiming any deduction or any expenditure not actually incurred; and
(c) any act referred to in sub-section (1) of section 111.
Explanation.- For the removal of doubt, it is clarified that where any item of receipt declared by the taxpayer is claimed as exempt from tax, or where any deduction in respect of any expenditure is claimed, mere disallowance of such claim shall not constitute concealment of income or the furnishing of inaccurate particulars of income, unless it is proved that the taxpayer deliberately claimed exemption from tax in respect of the aforesaid item of receipt or claimed deduction in respect of such expenditure not actually incurred by him."
(D) in clause (19), in sub-clause (e), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(E) in clause (24), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(F) in clause (29), the expression "233A," shall be omitted;
(G) in clause (29C),-
(a) in sub-clause (ab), after semi colon at the end, the word "and" shall be added;
(b) sub-clause (b) shall be omitted; and
(c) after sub-clause (b), omitted as aforesaid, the following new sub-clause shall be added, namely:-
"(c) telecommunication companies operating under the license of Pakistan Telecommunication Authority (PTA).";
(H) after clause (30AC), the following new clauses shall be inserted, namely:-
"(30AD) Information Technology (IT) services include software development, software maintenance, system integration, web design, web development, web hosting and network design; and
(30AE) IT enabled services include inbound or outbound call centres, medical transcription, remote monitoring, graphics design, accounting services, Human Resource (HR) services, telemedicine centers, data entry operations, cloud computing services, data storage services, locally produced television programs and insurance claims processing;";
(I) in clause (35AA), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(J) in clause (42A), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(K) in clause (59A), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(L) clause (59A) shall be re-numbered as clause (59AB) and after clause (59), the following new clause (59A) shall be inserted, namely:- "(59A) "small and medium enterprise" means a person who is engaged in manufacturing as defined in clause (iv) of subsection (7) of section 153 of the Ordinance and his business turnover in a tax year does not exceed two hundred and fifty million rupees:
Provided that if annual business turnover of a small and medium enterprise exceeds two hundred and fifty million rupees, it shall not qualify as small and medium enterprise in the tax year in which annual turnover exceeds that turnover or any subsequent tax year.
(M) in clause (59AB), re-numbered as aforesaid, -
(i) in sub-clause (ii), the word "and", at the end shall be substituted:
(ii) in clause (iii), after the semi colon, the word "and" shall be added;
(iii) after sub-clause (iii), amended as aforesaid, the following new clause shall be added, namely:-
"(iv) is not a small and medium enterprise as defined in clause (59A).;
(N) in clause (62A), in sub-clause (ii), for the words "Federal Government", the expression "Board with the approval of Federal Minister-in-charge" shall be substituted;
(2) in section 7B, in sub-section (3), in clause (b), for the words "thirty six", the word "five" shall be substituted;
(3) in section 8, in the marginal note, for the expression "5, 6 and 7", the expression "5, 5AA, 6, 7, 7A and 7B " shall be substituted;
(4) in section 12, in sub-section (2), after clause (c), the following explanation shall be added, namely:-
"Explanation.- For removal of doubt, it is clarified that the allowance solely expended in the performance of employee's duty does not include -
(i) allowance which is paid in monthly salary on fixed basis or percentage of salary; or
(ii) allowance which is not wholly, exclusively, necessarily or actually spent on behalf of the employer;";
(5) in section 15, sub-sections (6) and (7) shall be omitted;
(6) in section 15A,-
(a) in sub section (1), for the word "company", wherever occurring, the word "person" shall be substituted; and
(b) sub-section (7) shall be omitted;
(7) in section 18, in sub-section (1), in clause (b), for the semi colon at the end, the full stop shall be substituted and thereafter the following explanation shall be added, namely:-
"Explanation.- For the removal of doubt it is clarified that income derived by co-operative societies from the sale of goods, immoveable property or provision of services to its members is and has always been chargeable to tax under the provisions of this Ordinance;";
(8) in section 20, in sub-section (1A), after the expression "purposes,", occurring for the second time, the words "a deduction shall be allowed equal to", shall be inserted;
(9) in section 22, in sub-section (13), in clause (d), for the words "the consideration received shall be treated as the cost of the property", the expression "the excess amount shall be taxable under section 37" shall be substituted;
(10) section 23A shall be omitted;
(11) in section 31, in sub-section (1), for the expression "section 120 of the Companies Ordinance, 1984 (XLVII of 1984)", the expression "section 66 of the Companies Act, 2017 (XIX of 2017)" shall be substituted;
(12) in section 37,-
(a) in sub-section (1A),-
(i) the expression "and 3B" shall be omitted; and
(ii) for the full stop at the end, a colon shall be substituted and thereafter the following shall be added, namely:-
"Provided that where the taxable gain on disposal of immoveable property exceeds five million rupees, it shall be chargeable to tax under sub-section (1) of this section and provisions of sub-section (3) shall not apply. However, the taxable gain shall be calculated while taking into consideration the benefit of holding period as provided in sub-section (3A). Explanation.- For removal of doubt, it is clarified that where a person is habitually engaged in transactions of sale and purchase of immoveable property or such sale and purchase is adventure in the nature of trade and business, the provisions of this sub-section shall not apply and the income from such transactions shall be chargeable under the head Income from Business.";
(b) in sub-section (3), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted; and
(c) in sub-section (4A), in clause (d), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that, if the capital asset acquired through gift is disposed of within two years of acquisition and the Commissioner is satisfied that such gift arrangement is a part of tax avoidance scheme, then the provisions of sub-section (3) of section 79 shall apply for the purpose of determining the cost of asset in the hands of recipient of the gift.";
(13) in section 39,-
(a) in sub-section (1), in clause (la), for the expression " grandparents, parents, spouse, brother, sister, son or a daughter" , the expression "relative as defined in sub-section (5) of section 85" shall be substituted."; and
(b) in sub-section (5), for the expression "5, 6 or 7", the expression "5, 5AA, 6, 7 or 7B", shall be substituted;
(14) in section 53, in sub-section (2), for the words "Federal Government may", the words "Board with the approval of the Federal Minister-in-charge may, from time to time, pursuant to the approval of the Economic Coordination Committee of the Cabinet" shall be substituted.
(15) in section 56, in sub-section (1), after the word "salary", the words "or income from property" shall be omitted;
(16) in section 57,-
(a) in sub-section (4), the expression "23A" shall be omitted; and
(b) in sub-section (5), the expression "23A" shall be omitted;
(17) in section 59AA,-
(i) in sub-section (1) for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(ii) in sub-section (3), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(18) in section 59B,-
(a) in sub-section (1), for the word "of" occurring for the first time , the word "or" shall be substituted; and
(b) in sub-section (2), in clause (d), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(19) in section 60A,
(a) after the expression "(XXXVI of 1971)", the expression "or under any law relating to the Workers' Welfare Fund enacted by Provinces after the eighteenth Constitutional amendment Act, 2010" shall be added; and
(b) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that this section shall not apply in respect of any amount of Workers' Welfare Fund paid to the Provinces by a transprovincial establishment.";
(20) in section 60B,
(a) after the expression "(XII of 1968)", the expression "or under any law relating to the Workers' Profit Participation Fund enacted by Provinces after the eighteenth Constitutional amendment Act, 2010" shall be added; and
(b) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that this section shall not apply in respect of any amount of Workers' Profit Participation Fund paid to the province by a trans-provincial establishment.";
(21) in section 61,-
(a) in sub-section (1),-
(i) after the word "donation", the expression ", voluntary contribution or subscription" shall be inserted;
(ii) in clause (c), for the full stop at the end, the expression "or any person eligible for tax credit under section 100C of this Ordinance; or" shall be substituted; and
(iii) after clause (c), amended as aforesaid, the following new clause shall be added, namely:-
"(d) entities, organizations and funds mentioned in the Thirteenth Schedule to this Ordinance."
(22) in section 64B, in sub-section (3), in clause (c), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(23) section 64C shall be omitted;
(24) after section 64C, omitted as aforesaid, the following new section shall be inserted, namely:-
"64D. Tax credit for point of sale machine.- (1) Any person who is required to integrate with Board's computerized system for real time reporting of sale or receipt, shall be entitled to tax credit in respect of the amount invested in purchase of point of sale machine.
(2) The amount of tax credit allowed under sub-section (1) for a tax year in which point of sale machine is installed, integrated and configured with the Board's computerized system shall be lesser of -
(a) amount actually invested in purchase of point of sale machine; or
(b) rupees one hundred and fifty thousand per machine.
(3) For the purpose of this section, the term point of sale machine means a machine meant for processing and recording the sale transactions for goods or services, either in cash or through credit and debit cards or online payments in an internet enabled environment.";
(25) sections 65C and 65D shall be omitted;
(26) after section 65E, the following new sections shall be inserted, namely:-
"65F. Tax credit for certain persons.- (1) Following persons or incomes shall be allowed a tax credit equal to one hundred per cent of the tax payable under any provisions of this Ordinance including minimum, alternate corporate tax and final taxes for the period, to the extent, upon fulfillment of conditions and subject to limitations detailed as under:-
(a) persons engaged in coal mining projects in Sindh supplying coal exclusively to power generation projects;
(b) a startup as defined in clause (62A) of section 2 for the tax year in which the startup is certified by the Pakistan Software Export Board and the next following two tax years; and
(c) Income from exports of computer software or IT services or IT enabled services upto the period ending on the 30th day of June, 2025:
Provided that eighty percent of the export proceeds is brought into Pakistan in foreign exchange remitted from outside Pakistan through normal banking channels.
(2) The tax credit under sub-section (1) shall be available subject to fulfillment of the following conditions, where applicable, namely:-
(a) return has been filed ;
(b) withholding tax statements for the relevant tax year have been filed in respect of those provisions of the Ordinance, where the person is a withholding agent; and
(c) sales tax returns for the tax periods corresponding to relevant tax year have been filed if the person is required to file Sales Tax Return under any of the Federal or Provincial sales tax laws.
"65G. Tax credit for specified industrial undertakings.- (1) When making certain eligible capital investments as specified in sub-section (2), the eligible taxpayers defined in sub-section (3) shall be allowed to take an investment tax credit of twenty five percent of the eligible investment amount, against tax payable under the provisions of this Ordinance including minimum and final taxes. The tax credit not fully adjusted during the year of investment shall be carried forward to the subsequent tax year subject to the condition that it may be carried forward for a period not exceeding two years.
(2) For the purposes of this section, the eligible investment means investment made in purchase and installation of new machinery, buildings, equipment, hardware and software, except self-created software and used capital goods.
(3) For the purpose of this section, eligible person means -
(a) green field industrial undertaking as defined in clause (27A) of section 2 engaged in -
(i) the manufacture of goods or materials or the subjection of goods or materials to any process which substantially changes their original condition; or
(ii) ship building:
Provided that the person incorporated between the 30th day of June, 2019 and the 30th day of June, 2024 and the person is not formed by the splitting up or reconstitution of an undertaking already in existence or by transfer of machinery, plant or building from an undertaking established in Pakistan prior to commencement of the new business and is not part of an expansion project; and
(b) industrial undertaking set up by the 30th day of June 2023 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 the date such industrial undertaking is set up.
(27) in section 79, in sub-section (2), after the word "acquisition", the expression "in respect of disposal of an asset as mentioned in clauses (d), (e) and (f) " shall be inserted;
(28) in section 80, in sub-section (2), in clause (b), in para (i), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(29) in section 99B, for the words "Federal Government", the expession "Board with the approval of the Minister-in-charge" shall be substituted;
(30) in section 99C, for the words "Federal Government", wherever occurring, the expression "Board with the approval of the Minister-in-charge" shall be substituted;
(31) in section 100, in sub-section (3), for the words "Federal Government", the expression "Board with the approval of the Minister-in-charge shall be substituted;
(32) for section 100C, the following shall be substituted, namely:-
"100C. Tax credit for charitable organizations.- (1) The persons mentioned in sub-section (2) shall be allowed a tax credit equal to one hundred percent of tax payable under any of the provisions of this Ordinance including minimum and final taxes in respect of incomes mentioned in sub-section (3) subject to the conditions and limitations laid down in sub-section (4).
(2) The provisions of this section shall apply to the following persons, namely:-
(a) persons specified in Table - II of clause (66) of Part I of the Second Schedule to this Ordinance;
(b) a trust administered under a scheme approved by the Federal Government and established in Pakistan exclusively for the purposes of carrying out such activities as are for the welfare of ex-employees and serving personnel of the Federal Government or a Provincial Government or armed forces including civilian employees of armed forces and their dependents where the said trust is administered by a committee nominated by the Federal Government or a Provincial Government;
(c) a trust;
(d) a welfare institution registered with Provincial or Islamabad Capital Territory (ICT) social welfare department;
(e) a not for profit company registered with the Securities and Exchange Commission of Pakistan under section 42 of the Companies Act, 2017;
(f) a welfare society registered under the provincial or Islamabad Capital Territory (ICT) laws related to registration of cooperative societies;
(g) a waqf registered under Mussalman Waqf Validating Act, 1913 (VI of 1913) or any other law for the time being in force or in the instrument relating to the trust or the institution;
(h) a university or education institutions being run by non-profit organization existing solely for educational purposes and not for the purposes of profit;
(i) a religious or charitable institution for the benefit of public registered under any law for the time being in force; and
(j) international non-governmental organizations (INGOs)
approved by the Federal Government.
(3) The following income is eligible for tax credit, namely:-
(a) income from donations, voluntary contributions and subscriptions;
(b) income from house property;
(c) income from investments in the securities of the Federal Government;
(d) profit on debt from scheduled banks and microfinance banks;
(e) grant received from Federal, Provincial, Local or foreign Government;
(f) so much of the income chargeable under the head "income from business" as is expended in Pakistan for the purposes of carrying out welfare activities:
Provided that in the case of income under the head "income from business", only so much of such income shall be eligible for tax credit under this section that bears the same proportion as the said amount of business income bears to the aggregate of income from all sources; and
(g) any income of the persons mentioned in clauses (a), (b) and (h) of sub-section (2) of this section.
(4) Eligibility for tax credit shall be subject to the following conditions, namely:-
(a) return has been filed;
(b) tax required to be deducted or collected has been deducted or collected and paid;
(c) withholding tax statements for the relevant tax year have been filed;
(d) the administrative and management expenditure does not exceed 15% of the total receipts:
Provided that clause (d) shall not apply to a non-profit organization, if-
(i) charitable and welfare activities of the non-profit organization have commenced for the first time within last three years; or
(ii) total receipts of the non-profit organization during the tax year are less than one hundred million Rupees;
(e) approval of Commissioner has been obtained as per requirement of clause (36) of section 2:
Provided that the condition of approval in respect of persons mentioned in Table - II of clause (66) of Part I of the Second Schedule to this Ordinance, shall take effect from the first day of July, 2022 and the requirements of clause (36) of section 2, shall not be applicable for earlier years;
(f) none of the assets of trusts or welfare institutions confers, or may confer, a private benefit to the donors or family, children or author of the trust or his descendants or the maker of the institution or to any other person:
Provided that where such private benefit is conferred, the amount of such benefit shall be added to the income of the donor; and
(g) a statement of voluntary contributions and donations received in the immediately preceding tax year has been filed in the prescribed form and manner.
(5) Notwithstanding anything contained in sub-section (1), surplus funds of organizations to which this section applies shall be taxed at a rate of ten percent.
(6) For the purpose of sub-section (5), surplus funds mean funds or monies -
(a) not spent on charitable and welfare activities during the tax year;
(b) received during the tax year as donations, voluntary contributions, subscriptions and other incomes;
(c) which are more than twenty-five percent of the total receipts of the non-profit organization received during the tax year; and
(d) are not part of restricted funds.
Explanation.- For the purpose of this clause, "restricted funds" mean any fund received by the organization but could not be spent and treated as revenue during the year due to any obligation placed by the donor or funds received in kind.";
(33) in section 100D,-
(a) for the expression "30th day of September, 2022", wherever occurring except for clause (a) of sub-section (4), the expression "30th day of September, 2023" shall be substituted;
(b) in sub-section (1), in clause (b), in the proviso, after the figure "2019", the expression "or tax year 2020, as the case may be" shall be inserted;
(c) in sub-section (3),-
(i) for the expression "31st day of December, 2020", wherever occurring, the expression "30th day of June, 2021" shall be substituted; and
(ii) in clause (c), after the word "portal", the expression "by 30th
day of June, 2021" shall be added;
(d) in sub-section (4),-
(i) in clause (a), for the expression "30th day of September, 2022", wherever occurring, the expression "31st day of March, 2023" shall be substituted;
(ii) in clause (b),-
(I) in sub-clauses (i) and (ii), for the expression "31st day of December, 2020", wherever occurring, the expression "30th day of June, 2021" shall be substituted respectively; and
(II) in sub-clause (iii), for the expression "31st day of December, 2020", the expression "31st day of December, 2021" shall be substituted; and
(e) in sub-section (9),-
(i) for the expression "31st day of December, 2020", wherever occurring, the expression "31st day of December, 2021" shall be substituted; and
(ii) in clause (d), in sub-clause (iv), after the figure "2019", the expression "or tax year 2020 at the option of the taxpayer" shall be added;
(34) after section 100D, the following new section shall be inserted, namely._
"100E. Special provisions relating to small and medium enterprises.- (1) For tax year 2021 and onwards, the tax payable by a small
and medium enterprise as defined in clause (59A) of section 2 shall be computed and paid in accordance with rules made under the Fourteenth Schedule.
(2) The Board may prescribe a simplified return for a small and medium enterprise.";
(35) in section 107, in sub-section (1), after the words "avoidance of taxes", the words "or assistance in the recovery of taxes" shall be inserted;
(36) in section 111,-
(a) in sub-section (2), in clause (ii), for the word "and" occurring for the second time, the word "or" shall be substituted;
(b) for sub-section (4), the following shall be substituted, namely:-
"(4) Sub-section (1) does not apply to any amount of foreign exchange remitted from outside Pakistan through normal banking channels not exceeding five million Rupees in a tax year that is encashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect.";
(c) in sub-section (5), the following new explanation shall be added, namely:-
"Explanation.- For the removal of doubt, a separate notice under this section is not required to be issued if the explanation regarding nature and sources of amount credited or the investment of money, valuable article, or the funds from which expenditure was made has
been confronted to the taxpayer through a notice under sub-section
(9) of section 122 of this Ordinance.".
(37) in section 113,-
(a) in sub-section (1), for the word "ten" wherever occurring, the word "hundred" shall be substituted;
(b) in sub-section (2),-
(i) in clause (a), for the semi colon at the end a full stop shall be substituted and thereafter the following explanation shall be added, namely:-
"Explanation - For the removal of doubt, it is clarified that the definition of turnover covers receipts from all business activities in line with expression " turnover from all sources" used in sub-section (1) including but not limited to receipts from sale of immoveable property where such receipt is taxable under the head Income from Business;";
(ii) in clause (c), for the proviso, the following shall be substituted, namely:-
"Provided that if tax is paid under sub-section (1) due to the fact that no tax is payable or paid for the year, the entire amount of tax paid under sub-section (1) shall be carried forward for adjustment in the manner stated aforesaid:
Provided further that the amount under this clause shall be carried forward and adjusted against tax liability for five tax years immediately succeeding the tax year for which the amount was paid.";
(38) in section 114,-
(a) in sub-section (1), clause (ad) shall be omitted;
(b) in sub-section (5), 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 time-limitation provided under this sub-section shall not apply if the Commissioner is satisfied on the basis of reasons to be recorded in writing that a person who failed to furnish his return has foreign income or owns foreign assets."; and
(c) in sub-section (6), in clause (a), for the semi colon, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that Commissioner may waive this condition if Commissioner is satisfied that filing of revised accounts or audited accounts is not necessary;";
(39) section 114A shall be omitted;
(40) in section 120,-
(a) in sub-section (1),-
(i) in clause (a), the expression ", equal to the respective amounts adjusted under sub-section (2A)" shall be omitted;
(ii) in clause (b),-
(I) for the expression "adjustments were made under subsection (2A)", the expression "return was furnished" shall be substituted; and
(II) for the full stop at the end a colon shall be substituted and thereafter the following new provisos shall be added, namely:-
"Provided that until the date specified under the fourth proviso to sub-section (2A) is notified, this subsection shall be in force as if sub-section (2A) is not in operation:
Provided further that once the date under the fourth proviso to sub-section (2A) is notified, clauses
(a) and (b) shall only apply when the provisions of subsection (2A), if invoked, are first complied with:
Provided further once compliance is made under the second proviso,-
(i) the adjusted amount under sub-section (2A) shall be construed to be the tax payable and due under clause (a);and
(ii) the date of the compliance under sub-section (2A) shall be the date for the purposes of clause (b).";
(b) in sub-section (2A), in clause (iv), in the third proviso, 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 the provisions of this sub-section shall apply from the date notified by the Federal Board of Revenue in the official Gazette.";
(41) in section 122,-
(a) in sub-section (5A), the expression " after making, or causing to be made, such inquiries as he deems necessary," shall be omitted; and
(b) in sub-section (9), for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely:-
"Provided that order under this section shall be made within one hundred and twenty days of issuance of show cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, so however, such extended period shall in no case exceed ninety days. This proviso shall be applicable to a show cause notice issued on or after the first day of July, 2021.
Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or agreed assessment proceedings under section 122D or the time taken through adjournment by the taxpayer not exceeding sixty days shall be excluded from the computation of the period specified in the first proviso.";
(42) in section 122A, after sub-section (4), the following new sub-section shall be added, namely:-
"(5) If any order is remanded back to any lower authority by the Commissioner for modification , alteration, implementation of directions or de novo proceedings, the order giving effect to the directions of the Commissioner shall be issued within one hundred and twenty days.";
(43) in section 127,-
(a) for sub-section (2), the following new sub-section shall be substituted, namely:-
"(2) No appeal under sub-section (1), shall be made by a taxpayer against an order of assessment unless the taxpayer has paid the amount of tax due under sub section (1) of section 137."; and
(b) after sub-section (3), the following new sub-section shall be inserted, namely:-
"(3A) The Board may prescribe mechanism for electronic filing of the appeals.";
(44) in section 130, in sub-section (4),-
(a) in clause (a), for the words "Regional Commissioner", the words "Chief Commissioner Inland Revenue", shall be substituted; and
(b) in clause (b), the words " or Collector", shall be omitted;
(45) in section 134A,-
(a) in sub-section (1),
(i) the expression "where criminal proceedings have been initiated or" shall be omitted;
(ii) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that if the issue involves a mixed question of fact and law, the Board, while taking into consideration all relevant facts and circumstances, shall decide whether or not ADRC may be constituted."
(b) after sub-section (1), amended as aforesaid, the following new subsection shall be inserted, namely:-
"(1A) The application for dispute resolution shall be accompanied by an initial proposition for resolution of the dispute, from which proposition, the taxpayer would not be entitled to retract.";
(c) in sub-section (2), for the words "sixty", the figure "thirty" shall be substituted;
(d) in sub-section (4), for the expression, " one hundred and twenty days of its appointment", the words "sixty days of its appointment extendable by another thirty days for the reasons to be recorded in writing" shall be substituted;
(e) for sub-section (5), the following shall be substituted, namely:-
"(5) The recovery of tax shall be stayed on the constitution of committee till the final decision or dissolution of the committee, whichever is earlier";
(f) after sub-section (6), the following new sub-section shall be inserted, namely:-
"(6A) If the committee fails to decide within the period mentioned in sub section (4), the Board shall dissolve the committee by an order in writing and may re-constitute another committee and the provisions of sub-sections (2), (3), (4), (5) and (6) shall apply mutatis mutandis to the second committee"; and
(g) in sub-section (7), for the words "the Committee fails to decide within the period of one hundred and twenty days", the words "the Second Committee fails to decide within time limit prescribed" shall be substituted;
(46) in section 137,-
(a) in sub-section (2), in the first 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 due date for payment of tax payable specified in sub-section (2) of this section shall not apply in case of an assessment order passed under sub-section (1) or sub-section
(4) of section 124 of this Ordinance and that tax payable as a result
of order passed under sub-section (1) or sub-section (4) of section 124 shall be payable immediately."; and
(b) in section 139, in sub-section (1), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(47) after section 146B, the following new section shall be inserted, namely:- "146C. Assistance in the recovery and collection of taxes - The provisions of sections 138, 138A, 138B, 139, 140, 141, 142, 143, 144, 145, 146, 146A, and 146B shall mutatis mutandis apply in respect of assistance in collection and recovery of taxes in pursuance of a request from a foreign jurisdiction under a tax treaty, a multilateral convention, an intergovernmental agreement or similar arrangement or mechanism.";
(48) in section 147, in sub-section (6), in the first proviso, for the colon at the end, a full stop shall be substituted and thereafter the second proviso shall be omitted;
(49) in section 150, after the word "paid", the words "collect tax from the amount of dividend in specie" shall be inserted;
(50) section 150A shall be omitted;
(51) in section 151, after sub-section (1), following new sub-section shall be inserted, namely:-
"(1A) Every special purpose vehicle or a company, at the time of making payment of a return on investment in sukuks to a sukuk holder shall deduct tax from the gross amount of return on investment at the rate specified in Division IB of Part III of the First Schedule.";
(52) in section 152,-
(a) for the sub-sections (1B), (1BB) and (1BBB), following shall be substituted, namely :-
"(1B) The tax deductible under sub-sections (1A), (1AA) and (1AAA) shall be a minimum tax on the income of the nonresident persons in respect of payments mentioned therein. (1BA) Every person responsible for making payment directly or through an agent or intermediary to a non-resident person for foreign produced commercial for advertisement on any television channel or any other media, shall deduct tax at the rate of twenty percent from the gross amount paid. The tax deducted under this sub-section shall be final tax on the income of non-resident person arising out of such payment. and
(b) after sub-section (1D), the following new sub-sections shall be inserted, namely: -
"(1DA) Every banking company maintaining a Foreign Currency Value Account (FCVA) or a non-resident Pakistani Rupee Value Account (NRVA) of a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) shall deduct tax from capital gain arising on the disposal of debt instruments and government securities and certificates (including Shariah compliant variant) invested through aforesaid accounts at the rate specified in Division II of Part III of the First Schedule.", and "(1DB) Every special purpose vehicle or a company, at the time of making payment of a return on investment in sukuks to a nonresident sukuk holder shall deduct tax from the gross amount of return on investment at the rate specified in Division IB of Part III of the First Schedule."; and
(c) for sub-section (1E), the following shall be substituted, namely:-
"(1E) The tax deductible under sub-sections (1D), (1DA) and (1DB) shall be a final tax in respect of persons and income mentioned therein.";
(53) section 152A shall be omitted;
(54) in section 153,-
(a) in sub-section (4),-
(i) in the first proviso, for the words, "public company listed on registered stock exchange in Pakistan", the word "company" shall be substituted; and
(ii) in the second proviso, the words, "public listed" shall be omitted; and
(b) in sub-section (5), clause (b) shall be omitted;
(55) section 153B shall be omitted;
(56) after section 154, the following new section shall be inserted, namely:-
"154A. Export of Services.- (1) Every authorized dealer in foreign exchange shall, at the time of realization of foreign exchange proceeds on account of the following, deduct tax from the proceeds at the rates specified in Division IVA of Part III of the First Schedule -
(a) exports of computer software or IT services or IT enabled services in case tax credit under section 65F is not available;
(b) services or technical services rendered outside Pakistan or exported from Pakistan;
(c) royalty, commission or fees derived by a resident company from a foreign enterprise in consideration for the use outside Pakistan of any patent, invention, model, design, secret process or formula or similar property right, or information concerning industrial, commercial or scientific knowledge, experience or skill made available or provided to such enterprise;
(d) construction contracts executed outside Pakistan; and
(e) other services rendered outside Pakistan as notified by the Board from time to time;
(2) The tax deductible under this section shall be a final tax on the income arising from the transactions referred to in this section, upon fulfilment of the following conditions -
(a) return has been filed;
(b) withholding tax statements for the relevant tax year have been filed; and
(c) sales tax returns under Federal or Provincial laws have been filed, if required under the law;
(d) no credit for foreign taxes paid shall be allowed.
(3) The provisions of sub-section (2) shall not apply to a person who does not fulfill the specified conditions or who opts not to be subject to final taxation:
Provided that the option shall be exercised every year at the time of filing of return under section 114.
(4) Where a taxpayer, while explaining the nature and source of any amount, investment, money, valuable article, expenditure, referred to in section 111, takes into account any source of income which is subject to final tax in accordance with the provisions of this section, he shall not be entitled to take credit of a sum that can be reasonably attributed to the business activity or activities mentioned in sub-section (1).
(5) The Board in consultation with State Bank of Pakistan shall prescribe mode, manner and procedure of payment of tax under this section.
(6) The Board shall have power to include or exclude certain services for applicability of provisions of this section.";
(57) in section 155,-
(a) in the marginal note for the words " income from", the words "Rent of immoveable" shall be substituted; and
(b) in sub-section (1), after the explanation, the following explanation shall be added, namely:-
"Explanation.- For removal of doubt, it is clarified that the sub section
(1) shall apply when a payment is made on account of rent of immoveable property irrespective of head of income";
(58) in section 159, in sub-section (1),-
(a) in clause (c), for the expression "section 100C", the words "under this Ordinance" shall be substituted; and
(b) for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely :-
"Provided that in case of a company, the Commissioner shall issue exemption or lower rate certificate under this section within fifteen days of filing of application by the company:
Provided further that the Commissioner shall be deemed to have issued the exemption certificate upon the expiry of fifteen days from filing of application by the aforesaid company and the certificate shall be automatically processed and issued by Iris:
Provided also that the Commissioner may modify or cancel the certificate issued automatically by Iris on the basis of reasons to be recorded in writing after providing an opportunity of being heard.";
(59) in section 165, after sub-section (6), the following new sub-sections shall be added, namely:-
"(7) Every prescribed person collecting tax under Division II of this Part, Chapter XII or the Tenth Schedule or deducting tax from a payment under Division III of this Part, Chapter XII or the Tenth Schedule shall, e-file to the Commissioner an annual statement for the relevant tax year within thirty days of the end of tax year in addition to statement to be filed under sub-section (6) of this section.
(8) Every prescribed person collecting tax under Division II of this Part or Chapter XII, the Tenth Schedule or deducting tax from a payment under Division III of this Part, Chapter XII or the Tenth Schedule shall also e-file to the Commissioner a statement in the prescribed form reconciling the amounts mentioned in annual statement filed under sub-section (7) with the amounts declared in the return, audited accounts or financial statements by the due date of filing of return of income as provided under section 118 of the Ordinance.";
(60) in section 168, in sub-section (3), after clause (e), the following new clause shall be inserted, namely:-
"(ea) sub-section (2) of section 154A;";
(61) in section 169, in sub-section (1), in clause (b), after the expression "section 154," the expression "sub-section (2) of section 154A," shall be inserted;
(62) after section 170, the following new section shall be inserted, namely:-
"170A. Electronic processing and electronic issuance of Refunds by the Board.- Notwithstanding anything contained in section 170 of this Ordinance, commencing from tax year 2021, the Board may process and issue refund to the taxpayer who has filed the return of income without requiring refund application by the taxpayer to the extent of tax credit verified by the Board's computerized system as may be prescribed. The refund amount sanctioned under this section shall be electronically transferred in the taxpayer's notified bank account.";
(63) in section 182,-
(a) in sub-section (1), in the Table, in column (1), -
(i) against S. No. 1, in column (3), in the proviso and before the explanation, for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely:-
"Provided further that if taxable income is up-to eight hundred thousand Rupees, the minimum amount of penalty shall be five thousand Rupees:
Provided also that the amount of penalty shall be reduced by 75%, 50% and 25% if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law.";
(ii) against S. No. 1A, in column (3), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely: -
"Provided that where it stands established that no tax was required to be deducted or collected during the relevant period, minimum amount of penalty shall be ten thousand Rupees.";
(iii) S. No. 4A and entries relating thereto in column (2), (3) and (4) shall be omitted;
(iv) against S. No. 4B, in column (3), for the figure " 10,000", the figure "100,000" shall be substituted;
(v) against S. No. 6,-
(i) in column (2),-
(I) after the word "tax", occurring for the first time, the expression "paid is" shall be inserted; and
(II) the expression "is paid" shall be omitted; and
(ii) in column (3), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that no penalty shall be imposed to the extent of the tax shortfall occurring as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayer's position.";
(vi) against S. No. 10,-
(i) in column (3), for the figure "100%", the figure "50%" shall be substituted; and
(ii) in column (4), for the expression "and general", the figure "118" shall be substituted;
(vii) against S. No. 11, in column (3), for the words "one hundred" the word "fifty" shall be substituted;
(viii) against S. No. 15, for the entries in column (4), the expression "Division II or Division III of Part V of Chapter X or Chapter XII" shall be substituted;
(ix) against S. No. 16,-
(i) in column (2), after the letters "NTN", the expression "or business licence" shall be inserted; and
(ii) in column (4), after the figure "181C", the expression "and 181D" shall be added;
(x) S. No. 19 and entries relating thereto shall be omitted;
(xi) S. No. 20 and entries relating thereto shall be omitted;
(xii) after S. No. 28, the following new S .No. and entries relating thereto in columns (2), (3), and (4) shall be added, namely:-
====================================================================================================="29 Where any person fails to Such person shall pay 181"; declare business bank a penalty of Rs. 10,000 account (s), in his for each day of default registration application or since the date of fails to amend his submission of registration profile to application for declare existing business registration or date of bank account (s). opening of undeclared business bank account whichever is later: Provided that if penalty worked out as aforesaid is less than Rs.100,000 for each undeclared bank account, such person shall pay a penalty of Rs.100,000 for each undeclared business bank account: Provided further that this provision shall be applicable from the first day of October, 2021 during which period the taxpayer may update their registration forms.=====================================================================================================(b) in sub-section (2), after the proviso, the following explanation shall be added, namely:-
"Explanation.- For the removal of doubt, it is clarified that establishing mens rea is not necessary for levying of penalty under this section.";
(64) in section 182A, sub-section (2) shall be omitted;
(65) in section 191, in sub-section (1), -
(i) in clause (e), the word " or" at the end shall be omitted;
(ii) in clause (f), for the comma, at the end, a semi colon and the word "or" shall be inserted and thereafter the following new clause shall be added, namely:-
"(g) declare business bank account(s) in the registration form or updated registration form or return of income or wealth statement,";
(66) sections 202 and 203 shall be omitted;
(67) for section 203A, the following shall be substituted, namely:-
"203A. Power to arrest and prosecute.- (1) An officer of Inland Revenue not below the rank of an Assistant Commissioner of Inland Revenue or any other officer of equal rank authorised by the Board in this behalf, who on the basis of material evidence has reason to believe that any person has committed offence of concealment of income or any offence warranting prosecution under this Ordinance, may cause arrest of such person.
(2) All arrests made under this Ordinance shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V of 1898).
(3) Notwithstanding anything contained in sub-sections (1) and (2) or any other provision of this Ordinance, where any person has committed offence of concealment of income or any offence warranting prosecution under this Ordinance, the Chief Commissioner with the prior approval of the Board may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the amount of tax due along with such default surcharge and penalty as is determined under the provisions of this Ordinance.
(4) Where the person suspected of offence of concealment of income or any offence warranting prosecution under this Ordinance is a company, every director or officer of that company whom the authorised officer has reason to believe is personally responsible for actions of the company contributing to offence of concealment of income or any offence warranting prosecution under this Ordinance shall be liable to arrest:
Provided that any arrest under this sub-section shall not absolve the company from the liabilities of payment of tax, default surcharge and penalty imposed under this Ordinance.
203B. Procedure to be followed on arrest of a person.- (1) When an officer of Inland Revenue authorized in this behalf arrests a person under section 203A, he shall immediately intimate the fact of the arrest of that person to the Special Judge who may direct such officer to produce that person at such time and place and on such date as the Special Judge considers expedient and such Officer shall act accordingly.
(2) Notwithstanding anything contained in the sub-section (1), any person arrested under this Ordinance shall be produced before the Special Judge or, if there is no Special Judge within a reasonable distance, to the nearest Judicial Magistrate, within twenty-four hours of such arrest, excluding the time necessary for the journey from the place of arrest to the Court of the Special Judge or, as the case may be, of such Magistrate.
(3) When any person is produced under sub-section (2) before the Special Judge, he may, on the request of such person, after perusing the record, if any and after giving the prosecution an opportunity of being heard, admit him to bail on his executing a bond, with or without sureties, or refuse to admit him to bail and direct his detention at such place as he deems fit:
Provided that nothing herein contained shall preclude the Special Judge from cancelling the bail of any such person at a subsequent stage if, for any reason, he considers such cancellation necessary, but before passing such order he shall afford such person an opportunity of being heard, unless for reasons to be recorded he considers that the affording of such opportunity shall defeat the purposes of this Ordinance.
(4) When such person is produced under sub-section (2) before a Judicial Magistrate, such Magistrate may, after authorising his detention in such custody at such place and for such period as he considers necessary or proper for facilitating his earliest production before the Special Judge, direct his production before the Special Judge on a date and time to be fixed by him or direct such person to be forthwith taken to, and produced before, the Special Judge and he shall be so taken.
(5) Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the Judicial Magistrate from remanding any such person to the custody of an officer of Inland Revenue holding inquiry against that person if such officer makes a request in writing to that effect, and the Special Judge or the Judicial Magistrate, after perusing the record, if any, and hearing such person, is of the opinion that for the completion of inquiry or investigation it is necessary to make such order:
Provided that the period of such custody shall not exceed more than fourteen days.
(6) When any person is arrested under this Ordinance, an officer of Inland Revenue shall record the fact of arrest and other relevant particulars in the register specified in sub-section (10) and shall immediately proceed to inquire into the charge against such person and if he completes the inquiry within twentyfour hours of his arrest, excluding the time necessary for journey as aforesaid, he may, after producing such person before the
Special Judge or the nearest Judicial Magistrate, make a request for his further detention in his custody.
(7) While holding an inquiry under sub-section (6), an officer of Inland Revenue shall exercise the same powers as are exercisable by an officer in charge of a police station under the Code of Criminal Procedure, 1898 (Act V of 1898), but such officer shall exercise such powers subject to the foregoing provisions of this section while holding an inquiry under this Ordinance.
(8) If an officer of Inland Revenue, after holding an inquiry as aforesaid, is of the opinion that there is no sufficient evidence or reasonable ground for suspicion against such person, he shall release him on his executing a bond, with or without sureties, and shall direct such person to appear, as and when required, before the Special Judge, and make a report to the Special Judge for the discharge of such person and shall make a full report of the case to his immediate superior.
(9) The Special Judge to whom a report has been made under subsection, (8) may, after the perusal of record of the inquiry, and hearing the prosecution, agree with such report and discharge the accused or, if he is of the opinion that there is sufficient ground for proceedings against such person, proceed with his trial and direct the prosecution to produce evidence.
(10) An officer of Inland Revenue empowered to hold inquiry under this section shall maintain a register to be called "Register of Arrests and
Detentions" in the prescribed form in which he shall enter the name and other particulars of every person arrested under this Ordinance, together with the time and date of arrest, the details of the information received, the details of things, goods or documents, recovered from his custody, the name of the witnesses and the explanation, if any, given by him and the manner in which the inquiry has been conducted from day to day and, such register or authenticated copies of its aforesaid entries shall be produced before the Special Judge, whenever such Officer is so directed by him.
(11) After completing the inquiry, an officer of Inland Revenue shall, as early as possible, submit to Special Judge a complaint in the same form and manner in which the officer in-charge of a police station submits a report, before a court.
(12) Magistrate of the first class may record any statement or confession during inquiry under this Ordinance, in accordance with the provisions of section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898).
(13) Without prejudice to the foregoing provisions of this section, Board, with the approval of the Federal Minister-in-charge, may, by notification in the official Gazette, authorize any other officer working under the Board to exercise the powers and perform the functions of an officer of Inland Revenue under this section, subject to such conditions, if any, that it may deem fit to impose.
203C. Special Judges.- (1) The Federal Government shall by notification in the official Gazette, appoint as many Special Judges as it considers necessary and, where it appoints more than one Special Judge, it shall specify in the notification the headquarter of each Special Judge and the territorial limits within which he shall exercise jurisdiction under this Ordinance.
(2) No person shall be appointed as a Special Judge unless he is or has been a Sessions Judge.
203D. Cognizance of Offences by Special Judges.- (1)
Notwithstanding anything contained in this Ordinance or any other law for the time being in force, a Special Judge may, within the limits of his jurisdiction, take cognizance of any offence punishable under this Ordinance upon-
(a) a report in writing made by an officer of Inland Revenue or by any other officer especially authorized in this behalf by the Federal Government; or
(b) receiving a complaint or information of facts constituting such offence made or communicated by any person; or
(c) his own knowledge acquired during any proceeding before him under this Ordinance or under any other law for the time being in force.
(2) Upon the receipt of report under clause (a) of sub-section (1), the Special Judge shall proceed with the trial of the accused.
(3) Upon the receipt of a complaint or information under clause (b), or acquired in the manner referred to in clause (c) of sub-section (1), the
Special Judge may, before issuing a summon or warrant for appearance of the person complained against, hold a preliminary inquiry for the purpose of ascertaining the truth or falsehood of the complaint, or direct any magistrate or any officer of Inland Revenue or any police officer to hold such inquiry and submit a report, and such Magistrate or officer shall conduct such inquiry and make report accordingly.
(4) If, after conducting such inquiry or after considering the report of such Magistrate or officer, the Special Judge is of the opinion that there is -
(a) no sufficient ground for proceeding, he may dismiss the complaint, or
(b) sufficient ground for proceeding, he may proceed against the person complained against in accordance with law.
(5) A special Judge or a Magistrate or an officer holding inquiry under sub-section (3) may hold such inquiry, as early as possible, in accordance with the provision of section 202 of the Code of Criminal Procedure, 1898 (Act V of 1898).
203E. Special Judge, etc. to have exclusive jurisdiction.- Notwithstanding anything contained in this Ordinance or in any other law for the time being in force no,-
(a) court other than the Special Judge having jurisdiction, shall try an offence punishable under this Ordinance;
(b) other court or officer, except in the manner and to the extent specifically provided for in this Ordinance, shall exercise any power, or perform any function under this Ordinance;
(c) court, other than the High Court, shall entertain, hear or decide any application, petition or appeal under chapters XXXI and XXXII of the Code of Criminal Procedure, 1898 (Act V of 1898), against or in respect of any order or direction made under this Ordinance; and
(d) no court, other than the Special Judge or the High Court, shall entertain any application or petition or pass any order or give any direction under chapters XXXVII, XXXIX, XLIV or XLV of the aforesaid Code.
203F. Provisions of Code of Criminal Procedure, 1898, to apply.- (1) The provision of the Code of Criminal procedure, 1898 (Act V of 1898), so far as they are not inconsistent with the provisions of this Ordinance, shall apply to the proceedings of the court of a Special Judge and such court shall be deemed to be a court of Sessions for the purpose of the said Code and the provisions of Chapter XXIIA of the foresaid Code, so far as applicable and with the necessary modifications, shall apply to the trial of cases by the Special Judge under this Ordinance.
(2) For the purposes of sub-section (1), the Code of Criminal Procedure, 1898 (Act V of 1898), shall have effect as if an offence punishable under this Ordinance were one of the offences referred to in sub-section (1) of section 337 of the said Code.
203G. Transfer of cases.- (1) Where more than one Special Judge are appointed within the territorial jurisdiction of a High Court, the High Court, and where not more than one Special Judge is so appointed, the Federal Government, may by order in writing direct the transfer, at any stage of the trial, of any case from the court of one Special Judge to the Court of another Special Judge for disposal, whenever it appears to the High Court or, as the case may be, the Federal Government, that such transfer may promote the ends of justice or tend to the general convenience of the parties or witnesses.
(2) In respect of a case transferred to a Special Judge under subsection (1), such Special Judge shall not by reason of the said transfer, be bound to recall and rehear any witness whose evidence has been recorded in the case before the transfer and may act upon the evidence already recorded or produced before the court which tried the case before the transfer.
203H. Place of Sittings.- A Special Judge shall ordinarily hold sittings at his headquarters but, keeping in view the general convenience of the parties or the witnesses, he may hold sittings at any other place.";
(68) in section 204, for the words "Federal Government" wherever occurring, the expression "Board with the approval of the Minister-in-charge" shall be substituted;
(69) in section 212, for the words "Regional Commissioner", the words "Chief Commissioner Inland Revenue", shall be substituted;
(70) in section 216, in sub-section (3), in clause (k), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(71) section 222A shall be renumbered as sub-section (1) of that section and thereafter the following new sub-section shall be added, namely :-
"(2) The Board may authorize and prescribe the manner in which fee and service charges collected including by ventures of public-private partnership under this section are expended.";
(72) in section 225, for the expression "section 316 of the Companies Ordinance, 1984 (XLVII of 1984)", the expression "section 310 of the Companies Act, 2017 (XIX of 2017)" shall be substituted;
(73) after section 227D, the following new section shall be added, namely:-
"227E. E-hearing.- (1) The Board may design and prescribe e- hearing module for the purpose of conducting hearings, granting opportunity of being heard and electronically receiving any information for the purpose of this Ordinance.
(2) The recording of e-hearing proceedings shall be admissible as evidence before any forum or court of law for the purpose of this Ordinance.
(3) The Board may make rules for the purpose of this section.";
(74) after section 230H, the following new sub-section shall be inserted, namely:-
"230I. Directorate General of Compliance Risk Management.-
(1) The Directorate General of Compliance Risk Management shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.
(2) The Board may, by notification in the official Gazette -
(a) specify the functions, jurisdiction and powers of the Directorate General of Compliance Risk Management and its officers; and
(b) confer the powers of authorities specified in section 207 upon the Directorate General and its officers.";
(75) sections 231A, 231AA shall be omitted;
(76) in section 231B, after sub-section (2), the following new sub-section shall be inserted, namely:-
"(2A) Every motor vehicle registration authority of Excise and Taxation Department shall, at the time of registration, collect tax at the rates specified in Division VII of Part IV of the First Schedule, if the locally manufactured motor vehicle has been sold prior to registration by the person who originally purchased it from the local manufacturer." ;
(77) in section 233, in sub-section (1), for the expression " association of persons constituted by, or under any law", the expression "association of person or
individual having turnover of hundred million rupees or more" shall be substituted;
(78) sections 233A and 233AA shall be omitted;
(79) section 234A shall be omitted;
(80) in section 235,
(a) in sub-section (1),
(i) after the word " industrial" the words " or domestic" shall be inserted;
(ii) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that the provisions of sub-section (1) shall not apply to a domestic consumer of electricity if his name appears on the Active Taxpayers' List."; and
(b) in sub-section (3) for the words "for the tax year" occurring for the second time, the expression "under section 147 or whose entire income is subject to final tax regime or minimum tax regime under any provisions of this Ordinance other than this section" shall be substituted;
(81) section 235A shall be omitted;
(82) in section 236, in sub-section (1), after the words "specified in", the words "Division V" shall be inserted;
(83) section 236B shall be omitted;
(84) in section 236C, in sub-section (1),-
(a) in the explanation, after the words "co-operative society", the expression ", public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns" shall be inserted;
(b) 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 if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.";
(85) in section 236G, in sub-section (1), after the word "of" occurring for the first time, the expression "pharmaceuticals, poultry and animal feed, edible oil and ghee, battery, tyers, varnishes, chemicals, cosmetics, IT equipment," shall be inserted;
(86) in section 236H, in sub-section (1), after the word "of" occurring for the first time, the expression "pharmaceuticals, poultry and animal feed, edible oil and ghee, battery, tyers, varnishes, chemicals, cosmetics, IT equipment," shall be inserted;
(87) section 236HA shall be omitted;
(88) in section 236K,-
(a) in sub-section (1), in the explanation, after the expression "cooperative society", the expression ", public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns" shall be inserted;
(b) in sub-section (2), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that if the buyer or transferee is a non-resident individual holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who has acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability for such buyer or transferee."; and
(c) in sub section (3), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that where tax has been collected along with installments, no further tax under this section shall be collected at the time of transfer of property in the name of buyer from whom tax has been collected in installments which is equal to the amount payable in this section.";
(89) sections 236L shall be omitted;
(90) section 236P shall be omitted;
(91) section 236S shall be omitted;
(92) section 236V shall be omitted;
(93) section 236Y shall be omitted;
(94) after section 241, the following new section shall be added, namely:-
"242. Benefits of repealed provisions.- The existing beneficiaries of exemptions or concessionary provisions of the Ordinance, already expired or expiring, on thirtieth day of June, 2021 or repealed by Tax Laws (Second Amendment) Ordinance, 2021 shall continue to enjoy benefits of the repealed provisions for the periods prescribed therein and subject to conditions and limitations specified therein.
(95) in the First Schedule,-
(A) in Part I,-
(a) in Division IIA, in the Table, in column (1), against serial No. 1, in heading of column (6), after the expression "Tax Year 2021", the words "and onwards" shall be inserted;
(b) in Division IIIA, after the expression "shall be -" the expression "15%." shall be added and thereafter TABLE shall be omitted;
(c) Division VIA shall be omitted;
(d) in Division VII, in the TABLE,-
(i) for the expression, "and 2020 and onwards" appearing in heading of column (6) and (7), the expression ", 2020 and 2021" shall be substituted; and
(ii) in the Table, following new column (8), shall be added, namely:-
=========================="Tax year 2022 and onwards========================== (8) 12.5% 0% 5%"==========================(e) for Division VIII, the following shall be substituted, namely:-
"Division VIII
The rate of tax to be paid under sub-section (1A) of section 37 shall be five percent."
(f) in Division IX, for the Table, the following shall be substituted
=========================================================================================S.No Person (s) Minimum Tax as percentage of the person's turnover for the year=========================================================================================(1) (2) (3)=========================================================================================1. (a) Oil marketing companies, 0.75% Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited (for the cases where annual turnover exceeds rupees one billion.) (b) Pakistan International Airlines Corporation; and (c) Poultry industry including poultry breeding, broiler production, egg production and poultry feed production;2. (a) Oil refineries 0.5% (b) Motorcycle dealers registered under the Sales Tax Act, 19903. (a) Distributors of 0.25% pharmaceutical products, fast moving consumer goods and cigarettes; (b) Petroleum agents and distributors who are registered under the Sales Tax Act, 1990; (c) Rice mills and dealers; (d) Tier-1 retailers of fast moving consumer goods who are integrated with Board or its computerized system for real time reporting of sales and receipts; (e) Person's turnover from supplies through e- commerce including from running an online marketplace as defined in clause (38B) of section 2. (f) Persons engaged in the sale and purchase of used vehicles4 In all other cases 1.25%=========================================================================================(B) in Part II, in the first proviso, in clause (b), for the colon a semi-colon shall be substituted and thereafter the following new clause shall be added, namely:-
"(c) in case of importers of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and LCVs with 150 kwh battery or below shall be one percent:";
(C) in Part III,-
(a) in Division I, the expression "and 236S" shall be omitted;
(b) in Division IA, for the colon at the end, a full stop shall be substituted and thereafter the proviso shall be omitted;
(c) in Division IB, for the expression "under section 150A," the expression, " on return on investment in sukuks from a sukuk holder" shall be substituted;
(d) in Division II, in clause (3A), for the expression "sub-section (1D)", the expression "sub-sections (1D) and (1DA)" shall be substituted;
(e) in Division III,-
(i) in paragraph (1), sub-paragraph (ab) shall be omitted;
(ii) in paragraph (2), in sub-paragraph (i),-
(I) for the expression "clause (133) of Part I of the Second Schedule", the expression "section 65F" shall be substituted;
(II) after the words "training services", the expression ",oilfield services, telecommunication services, warehousing services, collateral management services, travel and tour services" shall be inserted;
(III) at the end following explanation shall be added, namely:-
"Explanation:- The tax rate under this subparagraph shall be applicable only to a service provider whose services are subjected to withholding tax on gross receipts and the service provider has not agitated taxation of gross receipts before any court of law.";
(f) Division IIIB shall be omitted;
(g) after Division IV, the following new Division shall be added, namely:-
"Division IVA Exports of Services
The rate of tax to be deducted under section 154A shall be one percent of the proceeds of the export.";
(h) in Division V, for the TABLE, the following shall be substiuted, namely:-
TABLE
========================================================================Sr. No Gross amount of rent Rate of tax========================================================================1 (2) (3)========================================================================1 Where the gross amount Nil of rent does not exceed Rs. 300,0002 Where the gross amount 5 per cent of the of rent exceeds Rs. gross amount 300,000 but does not exceeding exceed Rs. 600,000 Rs. 300, 0003 Where the gross amount Rs. 15,000 plus 10 of rent exceeds Rs. per cent of the gross 600,000 but does not amount exceeding exceed Rs. 2,000,000 Rs. 600, 0004 Where the gross amount Rs. 155,000 plus 25 of rent exceed Rs. per cent of the gross 2,000,000 amount exceeding Rs. 2,000, 000";========================================================================(i) Division VIB shall be omitted;
(D) in Part IV,-
(a) Divisions IIA and IIB shall be omitted;
(b) for Division IV, the following shall be substituted, namely:-
"DIVISION IV
Electricity Consumption
"(1) The rate of collection of tax from commercial and industrial consumers from gross amount of bills shall be as set out in the following Table, namely :-
TABLE
==============================================================S.No Gross amount of Bill Tax==============================================================1 upto Rs. 500 Rs. 02 exceeds Rs. 500 but does not 10% of the exceed Rs. 20,000 amount3 exceeds Rs.20,000 Rs. 1950 plus 12% of the amount exceeding Rs. 20,000 for commercial consumers Rs. 1950 plus 5% of the amount exceeding Rs. 20,000 for industrial consumers==============================================================(2) The rate of tax to be collected on domestic electricity consumption shall be-
(i) zero percent the amount of monthly bill is less than Rs.25,000; and
(ii) 7.5% if the amount of monthly bill is Rs. 25,000 or more;"
(c) in Division V, in the Table, in the first column, against Serial Number (b), in the third column, for the expression "12.5%", the expression "10% for tax year 2022 and 8% onwards" shall be substituted;
(d) Division VI and VIA shall be omitted;
(e) in Division VII, after clause (2), the following new clause shall be added, namely:-
"(3) The rate of tax under sub-section (2A) of section 231B shall be as follows:-
=========================================================S. No. Engine capacity Tax=========================================================(1) (2) (3)=========================================================1 Up to 1000cc Rs.50,0002 1001cc to 2000cc Rs.100,0003 2001cc and above Rs.200,000"; and=========================================================(f) Division IX shall be omitted;
(g) in Division XIV, after the Table, following new proviso shall be added, namely:-
"Provided that the rate of advance tax on sale to distributors, dealers or wholesalers of fertilizer shall be 0.25%, if they are already appearing on both the Active Taxpayers' Lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001 (XLIX of 2001).";
(h) for Division XV, the following shall be substituted, namely:-
"DIVISION XV
Advance tax on sale to retailers
The rate of collection of tax under section 236H on the gross amount of sales shall be 0.5%." ; and
(i) Divisions XVA, XIX, XX, XXI, XXVI and XXVII shall be omitted;
(96) in the Second Schedule,-
(A) in Part I ,-
(i) clause (4) shall be omitted;
(ii) in clause (22), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that exemption under this clause shall not be available to the payments representing profit on debt earned on provident fund contributions exceeding rupees five hundred thousand. The profit on debt exceeding rupees five hundred thousand shall be chargeable to tax @ 10% as separate block of income and the person making payment shall deduct tax at the said rate."
(iii) in clause (23), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that exemption under this clause shall not be available to the payments representing profit on debt earned on provident fund contributions exceeding rupees five hundred thousand. The profit on debt exceeding rupees five hundred thousand shall be chargeable to tax @ 10% as separate block of income and the person making payment shall deduct tax at the said rate.";
(iv) in clause (23C), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that exemption under this clause shall not be available to the payments representing profit on debt earned on accumulated balance in an approved pension fund. This profit on debt shall be chargeable to tax @ 10% as separate block of income.";
(v) clauses (39), (40) and (53A) shall be omitted;
(vi) in clause (57),-
(a) in sub-clause (1), paragraph (iii) shall be omitted; and
(b) in sub-clause (2), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(vii) clauses (61), (64A), (64B), (64C) and (65) shall be omitted;
(viii) in clause (66),-
(a) in sub-clause (1), in the Table 1, in column (1), after S. No. (xxxvi) and entries relating thereto in column (2), the following new entries shall be added, namely:-
==============================================================="(xxxvii) Islamic Naya Pakistan Certificates Company Limited (INPCCL).(xxxviii) Abdul Sattar Edhi Foundation.(xxxix) Patient's Aid Foundation.(xl) Indus Hospital and Health Network.(xli) Securities and Exchange Commission of Pakistan.(xlii) Dawat-e-Hadiya, Karachi.(xliii) Privatisation Commission of Pakistan.(xliv) The Citizens Foundation.(xlv) Sundus Foundation.(xlvi) Ali Zaib Foundation(xlvii) Fauji Foundation.(xlviii) Make a Wish Foundation(xlix) Audit Oversight Board.(xlx) Supreme Court Water Conservation Account.(xlxi) Political Parties registered with Election Commission of Pakistan.";===============================================================(b) in sub-clause (2), in the Table 2, in column (1), serial numbers (i), (viii), (x), (xxx), (xxxi) and (xxxvi) and entries relating thereto in column (2) shall be omitted;
(ix) clauses (72), (72A) and (74) shall be omitted;
(x) for clause (75), the following shall be substituted, namely:- "(75) Any profit on debt and capital gains derived by any agency of foreign Government or any non-resident person approved by the Federal Government for the purpose of this clause from debt and debt instruments approved by the Federal Government.";
(xi) in clause (78), for the expression "citizens of Pakistan and foreign nationals residing abroad, foreign association of persons, companies registered and operating abroad and foreign nationals residing in Pakistan", the expression "nonresident individuals, non-resident association of persons and non-resident companies" shall be substituted;
(xii) in clause (79), for the expression "citizen of Pakistan residing abroad", the expression "non-resident individual holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC)" shall be substituted;
(xiii) clauses (80), (90), (90A), (91) and (98) shall be omitted;
(xiv) in clause (99A), for the figure "2015", the figure "2023" shall be substituted;
(xv) clauses (100), (101), (103) and (103C) shall be omitted;
(xvi) after clause (103C), omitted as aforesaid, the following new clause shall be added, namely:-
"(103D) Dividend income and long term capital gains of any venture capital fund from investments in zone enterprises as defined in clause (p) of section 2 of the Special Technology Zones Authority Ordinance, 2020 for a period of ten years commencing from issuance of licence by the Authority to the zone enterprise.";
(xvii) clauses (104), (105), (105A), (110B), (110C), (114), (114AA) and (117) shall be omitted;
(xviii) for clause (126B), the following shall be substituted, namely:- "(126B) Profits and gains derived by a refinery -
(a) from new deep conversion refinery of at least 100,000 barrels per day for which approval is given by the Federal Government before the 31 st day of December, 2021; or
(b) for the purpose of upgradation, modernization or expansion project of deep conversion refinery of at least 100,000 barrels per day of any existing refinery which makes undertaking to the Federal Government in writing before the 31st day of December, 2021 in this regard:
Provided that this exemption shall be available for a period of ten years beginning from the date of commencement of commercial production in the case of new refinery and from the date of completion of up gradation, modernization or expansion project of existing refinery.";
(xix) clauses (126BA) and (126C) shall be omitted;
(xx) after clause (126E), the following new clause shall be inserted, namely:-
"(126EA) Profits and gains derived by -
(a) zone developer as defined in section 2 of the Special Technology Zones Authority Ordinance, 2020 from development and operations of the zones for a period of ten years starting from the date of signing of the development agreement;
(b) profits and gains of Zone Enterprises as defined in section 2 of the Special Technology Zones Authority Ordinance, 2020 for a period of ten years from the date of issuance of license by the Special Technology Zone Authority; and
(c) Special Technology Zones Authority established under the Special Technology Zones Ordinance 2020.";
(xxi) clauses (126G), (126H), (126I) , (126J), (126K) and (126L)
shall be omitted;
(xxii) in clause (126M),-
(i) in para (a), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(ii) in the proviso, for the figure "2018", the figure "2022" shall be substituted;
(xxiii) clauses (126N), (126O) and (131) shall be omitted;
(xxiv) in clause (132),-
(a) in sub-clause (a), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted; and
(b) in sub-clause (c), in the fifth 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 no exemption under this clause shall be available to persons, who enter into agreement or to whom letter of intent is issued by Federal or Provincial Government for setting up an electric power generation project in Pakistan after the 30th day of June, 2021.";
(xxv) clause (132A) shall be omitted;
(xxvi) after omitted clause (132A), the following new clause shall be inserted, namely:-
"(132AA) Profits and gains derived from sale of electricity by National Power Parks Management Company Limited commencing from the date of change of ownership as a result of privatization by the Privatization Commission of Pakistan.";
(xxvii) clause (132B) shall be omitted;
(xxviii) after clause (132B), omitted as aforesaid, the following new clause shall be inserted, namely:-
"(132C) Profits and gains derived by a taxpayer from a bagasse/biomass based cogeneration power project having one or more boilers of not less than 60 bar (kg/CM3) pressure each, commissioned after the first day of January 2013.";
(xxix) clauses (133), (135A), (136), (139), (141), (143), (146) and (148) shall be omitted;
(B) in Part II,-
(a) clauses (2), (3) and (3B) shall be omitted;
(b) in clause (5A), after the expression "Pakistan,", the expression "other than those covered under clauses (78) and
(79) of Part I of the Second Schedule," shall be inserted;
(c) after clause (5AA), the following new clauses shall be inserted, namely: -
"(5AB) The rate of tax to be deducted under section 151 shall be ten percent from the profit on debt from a debt instrument, whether conventional or Shariah compliant, issued by the Federal Government under the Public Debt Act, 1944 (XVIII of 1944) or its wholly owned special purpose company, purchased by a resident citizen of Pakistan who has already declared foreign assets to the Board through a Foreign Currency Value Account (FCVA) maintained with authorized banks in Pakistan under the foreign exchange regulation issued by the State Bank of Pakistan:
Provided that the tax so deducted shall be the final tax.
(5AC) The rate of tax to be deducted under sub-section (2) of section 152 or under section 151, as the case may be, shall be zero percent of the gross amount of profit on debt paid, covered under clauses (78) and (79) of Part I of the Second Schedule.";
(d) clause (5B) shall be omitted;
(e) after the omitted clause (9A), the following new clauses shall be inserted, namely:-
"(9AA) In respect of import of white sugar from the 25th day of August, 2020 to the 15th day of November, 2020 both days inclusive, tax under section 148 shall be collected at the rate of 0.25% as per quantity, quality, mode and manner prescribed by Ministry of Commerce during the said period.
(9AB) Tax under section 148 on commercial import of the white sugar shall be collected at the rate of 0.25% from the 26th day of January 2021 till the 30th day of June, 2021.
(9AC) Subject to quota allotment by Commerce Division, tax under section 148 shall be collected at the rate of 0.25% on import of raw sugar imported by sugar mills from the 26th day of January, 2021 to the 30th day of June, 2021 both days inclusive provided that such imports shall not exceed fifty thousand metric tons per sugar mill and three hundred thousand metric tons in aggregate by the sugar industry.";
(f) clauses (18), (18A) and (18B) shall be omitted;
(g) after clause (18B), omitted as aforesaid, the following new clause shall be added, namely:-
"(18C) The rate of tax as specified in Division-III of Part-I of First Schedule shall be reduced to 7.5% in case of dividends declared by a company as are "attributable" to profits and gains derived from a bagasse and biomass based cogeneration power project qualifying for exemption under clause (132C) of Part-I of this Schedule:
Provided that the amount of "attributable" dividends shall be computed in accordance with the following formula, namely:- AXB/C Where-
A is the total amount of dividend for the year;
B is the accounting profit for the year attributable to the bagasse and biomass based cogeneration power project qualifying for exemption under clause (132C) of Part-I of this Schedule; and C is the total accounting profit before tax for the year.
Explanation.- For the removal of doubt, it is clarified that accounting profit attributable to the bagasse/biomass based cogeneration power project would be determined by the external auditor of the company and the external auditor shall issue a certificate to this effect.";
(i) in clause (24A), the expression "and for large distribution houses who fulfill all the conditions for a large import house as laid down under clause (d) of sub-section (7) of section 148, for large import houses," shall be omitted;
(j) clause (24AA) shall be omitted;
(k) for clause (24C), the following shall be substituted, namely:- "(24C) The rate of tax under clause (a) of sub-section (1) of section 153 in the case of distributors, dealers, sub-dealers, wholesalers and retailers of fast moving consumer goods, fertilizer, electronics excluding mobile phones, sugar, cement, and edible oil as recipient of payment shall be 0.25% of gross amount of payments subject to the condition that beneficiaries of reduced rate are appearing on the Active Taxpayers' Lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001 (XLIX of 2001):
Provided that the benefit under this clause shall only be available to those Tier-1 retailers as defined under Sales
Tax Act, 1990 who are integrated and configured with Board or its computerized system for real time reporting of sales or receipts.";
(l) for clause (24D),the following shall be substituted, namely :- "(24D) The rate of minimum tax under sub-section (1) of section 113 in the case of distributors, dealers, sub-dealers, wholesalers and retailers of fast moving consumer goods, fertilizer, locally manufactured mobile phones, sugar, electronics excluding imported mobile phones, cement and edible oil shall be 0.25% subject to the condition that beneficiaries of reduced rate are appearing on the Active Taxpayers' Lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001:
Provided that the benefit under this clause shall be available to only those Tier-1 retailers as defined under Sales Tax Act, 1990 who are integrated and configured with Board or its computerized system for real time reporting of sales or receipts.";
(m) clauses (28A) and (28B) shall be omitted;
(n) in clause (28E), the expression "for tax year 2020" shall be omitted;
(C) in Part Ill,-
(a) clauses (2), (7) and (8) shall be omitted;
(b) in clause (9), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that exemption under this clause shall continue to remain available to such projects which commence on or before the 30th day of June, 2024.";
(c) in clause (9B), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided that exemption under this clause shall continue to remain available to such projects which commence on or before the 30th day of June, 2024."; and
(d) after clause (16), omitted as aforesaid, the following new clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2019, namely:- "(17) The tax payable by cotton ginners on their income and profits shall not be more than sum of 1 % of their turnover from cotton lint, cotton seed, cotton seed oil and cotton seed cake:
Provided that the tax so payable shall be final tax in respect of their cotton ginning and oil milling activities only."; and
(e) after clause (17), inserted as aforesaid, the following new clauses shall be added, namely:-
"(18) The rate of withholding tax on value of offshore supply contract of an Independent Power Producer located wholly or partly in territories of AJ and K shall be 1 % provided:
(i) PPIB has issued Letter of Support for the project;
(ii) its EPC Contract has been executed and submitted to NEPRA for EPC stage tariff determination prior to the enactment of Finance Act, 2018;
(iii) offshore supply contract arrangement of offshore supply contractor having permanent establishment in Pakistan falls under the purview of cohesive business operation as contemplated under Income Tax Ordinance, 2001; and
(iv) such 1% tax shall be full and final liability of the offshore contractor.
(19) The tax payable by woman enterprises on profit and gains derived from business chargeable to tax under the head "Income from Business" shall be reduced by 25%. Explanation.- For the purpose of this clause a woman enterprise means a startup established on or after first day of July 2021 as sole proprietorship concern owned by a woman or an AOP all of whose members are women or a company whose 100% shareholding is held or owned by women:
Provided that benefit of this clause shall not be available to a business that is formed by the transfer or reconstitution or reconstruction or splitting up of an existing business. ";
(D) in Part IV,-
(a) clause (2) shall be omitted;
(b) after the omitted clause (4), the following new clause shall be inserted, namely:-
"(4A) No provisions of law shall apply for recouping of tax credit already allowed to National Power Parks Management Company Limited for investment in plant and machinery in the eve of privatization merely for the reasons of change in its ownership pattern or debt to equity ratio.";(c) in clause (11A),-
(i) sub-clauses (ix), (x), (xiii), (xv), (xviii) and (xxix) shall be omitted;
(ii) after sub-clause (xxxviii), the following new subclauses shall be added, namely:-
"(xxxix) Islamic Naya Pakistan Certificates Company Limited (INPCCL);
(xl) receipts from sale of electricity produced from a bagasse and biomass based co-generation
power project qualifying for exemption under clause (132C) of Part-I of this Schedule;
(xli) new entity taking over National Power Parks Management Company Limited in the eve of privatization;
(xlii) Persons qualifying for exemption under clause (126E) of Part I of this Schedule for tax year 2021 and onwards (xliii) Persons qualifying for exemption under clause (126EA) of Part I of this Schedule;
(xliv) Persons mentioned in Table I of clause (66) of Part I of Second Schedule.";
(d) in clause (12B), for the expression "30th day of September, 2020", the expression "30th day of June, 2021" shall be substituted;
(e) after clause (12E), the following new clauses shall be added, namely:-
"(12F) The provision of section 148 shall not apply on import of 1.5 million tons of wheat having PCT Heading 1001.1900 and 1001.9900 in pursuance of Cabinet Decision in case No.399/23/2020 dated the 16th June, 2020;
(12G) The provisions of section 148 shall, in pursuance of the Cabinet Decision in case No. 541/30/2020 dated the 4th August, 2020, not apply on import by the Trading Corporation of Pakistan of 300,000 metric tons of white sugar having PCT heading 1701.9910,1701.9920, specification B;
(12H) (a) The provisions of section 148 shall not apply on import of following goods for a period of three months starting from the 23rd of June, 2020, namely:-
=====================================================================S.No. Description PCT Code=====================================================================(1) (2) (3)=====================================================================1 Oxygen gas 2804.40002 Cylinders (for oxygen gas) 7311.00903 Cryogenic tanks (for oxygen gas) 7311.0030=====================================================================(b) the concessions given in this clause shall also apply in ; and respect of the letters of credit opened or goods declaration forms filed on or after the 23rd June, 2020; (12I) The provisions of section 148 shall not apply on import of 83 X Micron sprayers for Anti-Locust Operation (Respective heading) by National Disaster Management Authority (NDMA).
(12J) The provisions of section 148 shall, in pursuance of the Cabinet Decision in case No. 34/02/2021, dated the 12th January, 2021, not apply on import of three hundred thousand metric tons of wheat through tendering process by the Trading Corporation of Pakistan;
(12K) (a) The provisions of section 148 shall not apply on import of following goods by the manufacturers of oxygen for a period of three months starting from the 25th day of December, 2020, namely:-
==============================================================S.No. Description PCT Code==============================================================(1) (2) (3)==============================================================1 Cryogenic Tanks (for oxygen Gas) 7311.0030==============================================================(b) the concessions given in this clause shall also apply in respect of the letters of credit opened or goods declaration forms filed on or after the 25th day of December, 2020;
(12L) The provisions of section 148 and 153 shall not apply on import and subsequent supply of five hundred thousand metric tons of white sugar imported by the Trading Corporation of Pakistan;
(12M) The provisions of section 148 shall not apply on import of following goods for a period of one hundred and eighty days starting from the 14th day of May, 2021, namely:-
====================================================================================S.No. Description PCT Code====================================================================================(1) (2) (3)====================================================================================1 -Oxygen 2804.40002 -Other (Oxygen Cylinders) 7311.00903 -For Cryogenic 7311.0030 (Tanks/Vessels) Oxygen Respective Concentrators/Generators/Manuf headings"; acturing Plants of all specifications and capacities====================================================================================(12N) Border sustenance markets-
(a) The provisions of section 148 shall not apply on the import of goods which takes place within the jurisdiction of Border sustenance markets specified in Table -I below:-
=============================================================================== TABLE - I=============================================================================== PCT Heading===============================================================================1. 07011000 -SEED (Potatoes)2. 07020000 TOMATOES, FRESH OR CHILLED.3. 07031000 -ONIONS AND SHALLOTS4. 07032000 -GARLIC5. -OTHERS which qualifies for exemption or concession or reduced rate under the 07049000 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets6. 07061000 -CARROTS AND TURNIPS7. CUCUMBERS AND GHERKINS FRESH 07070000 OR CHILLED.8. 07081000 -PEAS (PISUM SATIVUM)9. -BEANS (VIGNA SPP., PHASEOLUS 07082000 SPP.)10. 07089000 -OTHER LEGUMINOUS VEGETABLES11. 07131000 -Peas (Pisum sativum)12. 07132010 Grams (Dry/Whole)13. other-which qualifies for exemption or concession or reduced rate under the 07132090 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets14 -Beans of the species Vigna mungo (L.) 07133100 Hepper or Vigna radiata (L.) Wilczek15 -small red (Adzuki) beans (Phaseolus or 07133200 Vigna angularis)16 07133300 Kidney beans including white beans17 -Bambara vigna subteranea or 07133400 vaahdzeia subterrea18 07133500 -Cow peas (Vigna unguiculata)19 -Other which qualifies for exemption or concession or reduced rate under the 07133990 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets20 07134010 -Lentils (Dry Whole)21 -Broad beans (Vicia faba var. major) and 07135000 horse beans (Vicia faba var. equina, Vicia faba var. minor)22. 07136000 -Pigeon peas (cajanus cajan)23. -Other which qualifies for exemption or concession or reduced rate under the 07139090 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets24. 09051000 Vanilla (Neither crushed nor ground)25. 09061100 Cinnamon26. Other (Cinnamon And Cinnamon Tree 09061900 Flowers)27. 09071000 -Neither crushed nor ground (Cloves)28. 09072000 -Crushed or ground (Cloves)29. 09081100 -Neither Crushed nor ground (Nutmeg)30. 09081200 -Crushed or ground (Nutmeg)31. 09082100 -Neither crushed nor ground (Maze)32. 09082200 -Crushed or ground (Maze)33. 09083110 -Large (Cardammoms)34. 09083120 -Small (Cardammoms)35. 09083200 -Crushed or ground (Cardammoms)36. -Neither crushed nor ground 09092100 (Coriander)37. 09092200 -Crushed or ground (Coriander)38. -Neither crushed nor ground (Seeds of 09093100 Cumins)39 09093200 -Crushed or ground (Seeds of Cumins)40 -Neither crushed nor ground (Seeds of 09096100 Anise, Badian, Caraway, Fennel etc)41 -Crushed or ground (Seeds of Anise, 09096200 Badian, Caraway, Fennel etc)42 09109910 -THYME; BAY LEAVES43 10031000 Barley (Seeds)44 10039000 Other (Barley)45 12060000 Sunflower seeds ,whether or not broken46 12129200 Locust beans47 12130000 Cereal straws and husks48 15161000 Animal Fats and Oil and their fractions49 15162010 Vegetable Fats and their fractions50. 15162020 Vegetable Oils and their fractions51. -Knives and cutting blades for paper 82089010 and paper board52. -OF A FAT CONTENT, BY WEIGHT, 04011000 NOT EXCEEDING 1 % (Milk and Cream)53. -OF A FAT CONTENT, BY WEIGHT, 04012000 EXCEEDING 1 % BUT NOT EXCEEDING 6 % (Milk and Cream)54. -Of a fat content, by weight, exceeding 6 04014000 % but not exceeding 10% (Milk and Cream)55. -Of a fat content, by weight, exceeding 04015000 10 % (Milk and Cream)56. -LEEKS AND OTHER ALLIACEOUS 07039000 VEGETABLES57. -CAULIFLOWERS AND HEADED 07041000 BROCCOLI58. 07042000 -BRUSSELS SPROUTS59. -CABBAGE LETTUCE (HEAD 07051100 LETTUCE)60. -OTHER which qualifies for exemption 07051900 or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets61. -WITLOOF CHICORY (CICHORIUM 07052100 INTYBUS VAR.FOLIOSUM)62. -OTHER which qualifies for exemption or concession or reduced rate under the 07052900 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets63. -OTHER which qualifies for exemption or concession or reduced rate under the 07069000 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets64. Fruits of the genus Capsicum or of the 07096000 genus Pimenta65. 08042000 Figs66. 08061000 -FRESH (Grapes)67. 08062000 DRIED (Grapes)68. 08071100 -WATERMELONS69. -OTHER which qualifies for exemption 08071900 or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets70. 08081000 -APPLES71. 09021000 Green Tea72. 09022000 Other Green Tea73. 09101200 -Crushed or ground (Ginger)74. 09103000 -TURMERIC (CURCUMA)75. -OTHER which qualifies for exemption or concession or reduced rate under the 09109990 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets76. 17021110 Lactose (Sugar)77. 17021120 -Lactose syrup78. -OTHER which qualifies for exemption or concession or reduced rate under the 17021900 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets79. 17029020 -CARAMEL80. OIL-CAKE AND OTHER SOLID 23040000 RESIDUES, WHETHER OR NOT GROUND OR IN THE FORM OF PELLETS, RESULTING FROM THE EXTRACTION OF SOYA BEAN OIL.81. 23099000 Other (animal feed)82. 52042010 FOR Sewing (Thread)83. 52042020 For embroidery (Thread)84. 82011000 -Spades and shovels85. Other (Tools for masons, watchmakers, 82055900 miners and hand tools nes)86. -For kitchen appliances or for machines 82083000 used by the food industry87. -Other which qualifies for exemption or concession or reduced rate under the 82089090 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets88. 04031000 -YOGURT89. 07019000 Other (Potatoes)90. 07104000 -Sweet corn91. 07109000 -Mixtures of vegetables92. 08041010 Fresh (Dates)93. 08041020 Dried (Dates)94. 08091000 -APRICOTS95. 08092100 -Sour cherries (Prunus cerasus)96. -Other which qualifies for exemption or concession or reduced rate under the 08092900 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets97. 08093000 -PEACHES, INCLUDING NECTARINES98. 08094000 -PLUMS AND SLOES99. 08101000 Strawberries100. 08105000 Kiwi Fruit101. 09101100 -Neither crushed nor ground (Ginger)102. Other (Durum wheat (excl. seed for 10011900 sowing))103. Other (Wheat and meslin (excl. seed for 10019900 sowing, and durum wheat))104. 11010010 Of Wheat (Flour)105. 11010020 Of Meslin (Flour)106. 19021920 -VERMACELLI107. 19059000 Other (Packed Cake)108. 20071000 Homogenised perparations109. 20079100 Citrus Fruit110. Other which qualifies for exemption or 20079900 concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets111. -ORGANIC SURFACE-ACTIVE PRODUCTS AND PREPARATIONS FOR WASHING THE SKIN, IN THE FORM OF 34013000 LIQUID OR CREAM AND PUT UP FOR RETAIL SALE, WHETHER OR NOT CONTAINING SOAP112. 34022000 -Preparations put up for retail sale113. Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise 34029000 Act, 2005 for Border Sustenance Markets114. Others (Tableware and kitchenware of 69111090 porcelain or china)115. Other (Household articles nes & toilet 69119000 articles of porcelain or china)116. Other (Glassware for table or kitchen 70134900 purposes (excl. glass having a linear c)117. Other (Glassware nes (other than that of 70139900 70.10 or 70.18))118. 82159910 -Spoons119. Other (Tableware articles not in sets and 82159990 not plated with precious meta)l120. Bicycles and other cycles (including 87120000 delivery tricycles), not motorised.121. 96170010 -Vacuum flasks122. -OTHER which qualifies for exemption or concession or reduced rate under the 96170020 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets===============================================================================(b) The provisions of section 154 shall not apply to the export of goods which takes place within the jurisdiction of Border sustenance markets specified in Table - II below:-
=============================================================================== TABLE - II===============================================================================Sr.# PCT Description Heading===============================================================================1 Other cuts with bone in (Meat of bovine 02012000 animals, fresh or chilled)2 Boneless (Meat of bovine animals, fresh 02013000 or chilled)3 Other cuts with bone in (Meat of bovine 02022000 animals, frozen)4 02023000 Boneless (Meat of bovine animals, frozen)5 03021100 Fish6 04090000 Honey7 06022000 Plants8 07011000 -SEED (Potatoes)9 07019000 Other (Potatoes)10 07020000 TOMATOES, FRESH OR CHILLED.11 07031000 -ONIONS AND SHALLOTS12 07032000 Garlic13 07061000 -CARROTS AND TURNIPS14. -OTHER which qualifies for exemption or concession or reduced rate under the 07069000 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets15. 07070000 Cucumbers16. 07093000 Egg Plant17. Fruits of the genus Capsicum or of the 07096000 genus Pimenta (pepper)18. 07099900 Others (Lady Finger)19. 07101000 Fresh Potato20. 07102100 Pea21. 07103000 Spinach22. 08031000 -Plantains (Bananas)23. 08039000 -Other (Bananas)24. 08041010 Fresh (Dates)25. 08041020 Dried (Dates)26. 08045020 Mangoes27. -Mandarins (including tangerines and 08052100 satsumas)28. 08052910 Kino (fresh)29. 08061000 Grapes (Fresh)30. 08071100 -WATERMELONS31. 08071900 Melons32 08091000 Apricots33 08092900 Cherries34 08093000 Peaches35 08101000 Strawberries36 08109010 Pomegranates37 08109090 Fresh fruits nes (Other)38 08133000 Apple39 09021000 Green Tea40 09022000 Other green tea41 09030000 Mate.42 09042110 Red Chillies (Whole)43 Other which qualifies for exemption or concession or reduced rate under the 09042190 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets44 09042210 Red Chillies (Powder)45 Other which qualifies for exemption or concession or reduced rate under the 09042290 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets46. 09051000 -Neither crushed nor ground (Vanilla)47. 09052000 -Crushed or ground (Vanilla)48. 10061010 -SEED FOR SOWING (Rice)49. -OTHER which qualifies for exemption or concession or reduced rate under the 10061090 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets50. 10062000 -HUSKED (BROWN) RICE51. 10063010 -BASMATI (Rice)52. -OTHER which qualifies for exemption or concession or reduced rate under the 10063090 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets53. 10064000 -BROKEN RICE54. 11010010 Flour (of Wheat)55. 12074000 -Sesamum seeds56. 12079900 Other (hemp Seeds)57. 12119000 Ajwain58. 15162020 Vegetable Oils and their fractions59. 19021920 -VERMACELLI60. 19041090 Papad61 20071000 -Homogenised preparations62 20081900 -Nimko63 21069090 -OTHER (Custard Powder)64 23099000 Other (Animal feed)65 25010010 Table Salt66 25010020 Rock Salt67 25010030 Sea Salt68 Other which qualifies for exemption or concession or reduced rate under the 25010090 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets69 34060000 Candles70 36050000 Safety Match71 39264090 -OTHER (Plastic Articles)72. Woven fabrics of jute or of other textile 53101000 bast fibres, unbleached73. 53109010 -Jute (hessian cloth)74. 56074100 -Binder or baler twine75. -Other which qualifies for exemption or concession or reduced rate under the 56074900 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets76. 56075000 -Of other synthetic fibres77. -Unbleached (Terry toweling in similar 58021100 woven terry fabrics, of cotton)78. -Other (Terry toweling In similar woven 58021900 Terry fabrics, OF cotton)79. -Terry towelling and similar woven terry 58022000 fabrics, of other textile materials80. 58023000 -Tufted textile fabrics81. 58043000 -Hand made lace82. Hand-woven tapestries of the type Gobelins, Flanders, Aubusson, Beauvais 58050000 and the like, and needle-worked tapestries (for example, petit point, cross stitch), whether or not made up.83. -Fabrics consisting of warp without weft 58064000 assembled by means of an adhesive (bolducs)84. -Textile fabrics coated with gum or 59011000 amylaceous substances, of a kind used for the outer covers of books or the like85. Mix Goods/Garments (Babies 61119000 garments&clothg accessories)86. 62031990 OTHER (Men or Boys Suits etc)87. 62042200 -Of cotton88. 62042900 -Of other textile materials89. 62043900 -Of other textile materials90. 62044210 -Shisha embroidered dresses91. -OTHER which qualifies for exemption or concession or reduced rate under the 62129000 provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets92. 63021090 -OTHER (Bed linen, Toilet linen etc)93. Jute Bags (of jute or of other textile bast 63051000 fibres of heading 53.03)94. Sacks and bags, for packing of goods, of 63052000 cotton95. 63090000 Worn clothing and other worn articles96. Other (Tableware and kitchenware of 69111090 porcelain or china)97. Others (Household articles nes & toilet 69119000 articles of porcelain or china)98. Drinking glasses (excl. glasses of glass 70133700 ceramics or of lead crystal a99. 73181690 Nuts, iron or steel, nes (Others)100. Tools for masons, watchmakers, miners 82055900 and hand tools nes (Other)101. Hand tools (Other, including sets of 82059000 articles of two or more subheadings of this heading)102. 82119100 -Table knives having fixed blades103. 82119200 -Other knives having fixed blades104. Tableware articles not in sets and not 82159990 plated with precious metal105. 84485100 Needle106. 96170010 -Vacuum flasks107. -Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise 96170020 Act, 2005 for Border Sustenance Markets===============================================================================The exemption under this clause shall be available on the import of goods subject to following conditions, namely:-
(i) Such goods shall be supplied only within the limits of Border Sustenance Markets established in cooperation with Iran and Afghanistan;
(ii) If the goods, on which exemption under this table has been availed, are brought outside the limits of such markets, income tax shall be charged on the import value as per provisions of section 148 of this Ordinance;
(iii) Such items in case of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of income tax involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction;
(iv) The said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets; and
(v) Breach of any of the conditions specified herein shall attract relevant legal provisions of the Ordinance, besides recovery of the amount of income tax along with default surcharge and penalties involved.
(f) in clause (19), for the expression "Companies Ordinance,
1984 (XLVII of 1984)", the expression "Companies Act, 2017
(XIX of 2017)" shall be substituted;
(g) in clause (43D),-
(i) for the expression "clause (a)", the expression "clauses (a) and (b)" shall be substituted;
(ii) for the figure "2.5%", the figure "3.5%" shall be substituted;
(iii) the expression "w.e.f. tax year 2012" shall be omitted;
(h) in clause (43E),-
(i) for the expression "clause (a)", the expression "clauses (a) and (b)" shall be substituted;
(ii) for the figure "3%", the figure "3.5%" shall be substituted;
(i) after clause (43F), the following new clause shall be inserted, namely:-
"(43G) The provisions of section 153 shall not apply to commodity futures contracts listed on a Futures Exchange licensed under the Futures Market Act, 2016 (XIV of 2016)."; (j) in clause (45), in the proviso, in paragraph (b), for the expression "; and" at the end full stop shall be substituted and thereafter the paragraph (c) shall be omitted;
(k) in clause (45A),-
(i) the expression "(a)" appearing for the first time shall be omitted;
(ii) after sub-clause (v), before the proviso, the following new explanation shall be inserted, namely:- "Explanation.- For removal of doubt, it is clarified that the relief of reduced rate for withholding tax under clause (a) and (b) of sub-section (1) of section 153 is available only to the local sales, supplies and services made by the taxpayers of categories specified at serial no (i) to (v) of this clause:"; and
(iii) Sub-clause (b) shall be omitted;
(l) after clause (45A), amended as aforesaid, the following new clause shall be added, namely:-
"(45B) The provisions of section 153 shall not apply on the purchase of used motor vehicles from general public."; (m) in clause (46AA), for sub-clause (iv), the following shall be substituted, namely:-
"(iv) subject to fulfillment of procedure laid down in clause
(12) of Part IV of Second Schedule, persons receiving
payments exclusively for the supply of agriculture
produce including following -
(I) fresh milk;
(II) fish by any person engaged in fish farming;
(III) live chicken, birds and eggs by any person engaged in poultry farming;
(IV) live animals by any person engaged in cattle farming;
(V) unpackaged meat; and
(VI) raw hides:
Provided that this clause shall not apply to the payments for agriculture produce which has been subjected to any process other than that which is ordinarily performed to render such produce to be fit to be taken to the market";(n) in clause (47B), the words "or a modaraba" and "or a Private Equity and Venture Capital Fund" shall be omitted;
(o) in clause (56),-
(i) after sub-clause (iii), the following new sub-clause shall be inserted, namely:-
"(iiia) Goods temporarily imported into Pakistan by international athletes which would be subsequently taken back by them within one hundred and twenty days of temporary import;";
(ii) after sub-clause (xii), the following new sub-clauses shall be added, namely:-
"(xiii) Goods produced or manufactured and exported from Pakistan which are subsequently imported in Pakistan within one year of their exportation, provided conditions of section 22 of the Customs Act, 1969 (IV of 1969) are complied with;
(xiv) plant and machinery imported for setting up of a bagasse/biomass based cogeneration power project qualifying for exemption under clause (132C) of Part-I of this Schedule.;
(xv) persons authorized under Export Facilitation Scheme 2021 notified by the Board with such scope, conditions, limitation, restrictions and specification of goods.;
(xvi) motor vehicles upto 850cc in CBU condition;
(xvii) Printed books excluding brochures, leaflets and similar printed matter, whether or not in single sheets.(PCT code 49.01); and
(xviii) Newspapers, journals and periodicals, whether or not illustrated or containing advertising material (PCT code 49.02) ";
(o) clause (57A) shall be omitted;
(p) in clause (59), in para (ii), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(q) after clause (60D), the following new clause shall be inserted, namely:-
"(60DA) The provisions of section 148 shall not apply to the import of the capital equipment as defined in section 2 of the Special Technology Zones Ordinance 2020 ( XIII of 2020) by -(a) zone developers as defined in section 2 of the Special Technology Zones Ordinance 2020 for consumption in the special technology zones for the period of 10 years commencing from the date of signing the development agreement;
(b) zone enterprises as defined in section 2 of the Special Technology Zones Authority Ordinance, 2020 for a period of ten years from the date of issuance of license by the Special Technology Zone Authority; and
(c) Special Technology Zones Authority established under the Special Technology Zones Ordinance 2020.";
(r) clauses (61) and (72A) shall be omitted;
(s) after the omitted clause (79), the following new clause shall be inserted, namely:-
"(79A) The provisions of clause (b) of sub-section (1) of section 153 shall not apply to payments received by National Telecommunication Corporation against provision of telecommunication services including ancillary services specified in sub-section (3) of section 41 of the Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996).";
(t) in clause (91), in paragraph (iv), after sub-paragraph (xvi), the following new sub-paragraphs shall be added, namely:- "(xvii) Corn harvester/corn picker and silage maker with their respective PCT heading";
(u) in clause 95, the expression " 231A, 231AA," shall be omitted;
(v) clauses (101), (101A) and (101AA) shall be omitted;
(w) in clause (108), for the expression "113, 151,231A,231AA and 236P", the expression " 131 and 151" shall be substituted;
(x) clause (109) shall be omitted; and
(y) after clause (111A), the following new clause shall be inserted, namely:-
"(111AB) The provisions of section 100BA and rule 1 of the Tenth Schedule shall not apply to non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) maintaining a Foreign Currency Value Account (FCVA) or Non-resident Pakistani Rupee Value Account (NRVA) with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan.";
(aa) clauses (112) and (112A) shall be omitted;
(ab) for clause (114A), the following clause shall be substituted, namely:-
"(114A) The provisions of clause (ae) of sub-section (1) of section 114 and section 181 shall not apply to a nonresident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) maintaining a Foreign Currency Value Account (FCVA) or a Non-resident Pakistani Rupee Value Account (NRVA) with authorized banks in
Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan:
Provided that this clause shall not apply if the person referred in this clause has Pakistan-source taxable income other than the following; namely:-
(a) profit on debt on FCVA or Non-resident Pakistani Rupee Value Account (NRVA);
(b) profit on debt earned on Government of Pakistan (GOP) securities either conventional or Shariah Compliant where investment has been made from proceeds of FCVA or NRVA;
(c) capital gain on disposal of immovable property acquired from proceeds of FCVA or NRVA;
(d) capital gain on disposal of securities traded on Pakistan Stock Exchange and units of mutual funds that are acquired from proceeds of FCVA or NRVA; or
(e) dividend income from securities traded on Pakistan Stock Exchange and mutual funds that are acquired from proceeds of FCVA or NRVA.";
(ac) in clause (116), the expression, " ,231A, 231AA and 236P" shall be omitted;
(ad) clause (117) shall be omitted;
(ae) after clause (117), omitted as aforesaid, the following new clause shall be added, namely:- "(118) The provisions of withholding taxes contained in the Income Tax Ordinance, 2001 (XLIX of 2001) shall not apply to Islamic Naya Pakistan Certificates Company Limited (INPCCL) as a recipient.
(119) The provisions of section 153(1)(a) shall with effect from the first day of July, 2020 not apply to distributors, dealers, wholesalers and retailers of locally manufactured mobile phone devices as withholding agent.";
(97) in the Third Schedule,-
(a) in Part I, in the Table, in the first column, against S. No. IV, entry (a) in the second column shall be omitted; and
(b) in Part II,-
(I) in the heading, the expression "23A" shall be omitted; and
(II) in paragraph (2), the expression "section 23A and" shall be omitted;
(98) in the Fifth Schedule, in Part II, rule 4 shall be omitted;
(99) in the Seventh Schedule, in rule (7C), for the expression "to 2021", the expression "and onwards" shall be substituted;
(100) in the Eight Schedule, in rule (6), for the expression "Companies Ordinance, 1984 (XLVII of 1984)", the expression "Companies Act, 2017 (XIX of 2017)" shall be substituted;
(101) in the Tenth Schedule, in rule 10, clauses (d), (f), (g), (h), (j), (m), (r) and (s) shall be omitted;
(102) in the Eleventh Schedule,-
(a) in rule 2, in sub-rule (2), in clause (b),-
(i) for the word, "two", the word "three" shall be substituted;
(ii) for the first proviso, the following shall be substituted, namely:-
"Provided that in case of existing incomplete projects, the estimated project life shall be treated as four years maximum from tax year 2020 through tax year 2023 and the tax payable shall be reduced by the percentage of completion up to the last day of accounting period pertaining to tax year 2019 or tax year 2020 as declared in the registration form."; and
(iii) second proviso shall be omitted;
(b) in rule 3, in sub-rule (1),-
(i) for the expression "31st day of December, 2020, the expression "31st day of December, 2021" shall be substituted; and
(ii) in clause (a), in the proviso, for the semi colon and the word "and", a colon shall be substituted and thereafter the following new proviso shall be added, namely:-
"Provided further that where benefit of sub-section (3) of section 100D is required to be claimed by builder or developer, the project shall be registered latest by 30th day of June, 2021; and";
(c) in rule 8, in clause (c), for the expression "31st day of December, 2020", the expression "30th day of June, 2021" shall be substituted; and
(d) in rule 9, in sub-rule (1), in clause (d), in sub-clause (ii), in the proviso, for the expression "31st day of December, 2020", the expression "31st day of December, 2021" shall be substituted; and
(103) after the Twelfth Schedule, the following new Schedules shall be added, namely:-
"THE THIRTEENTH SCHEDULE
(See section 61)
================================================================================S. No. Name================================================================================(1) (2)================================================================================1 any Sports Board or institution recognised by the Federal Government for the purposes of promoting, controlling or regulating any sport or game.2 The Citizens Foundation.3 Fund for Promotion of Science and Technology in Pakistan.4 Fund for Retarded and Handicapped Children.5 National Trust Fund for The Disabled.6 Fund for Development of Mazaar of Hazarat Burn i Imam.7 Rabita-e-lslami's Project for printing copies of the Holy Quran.8 Fatimid Foundation, Karachi.9 Al-Shifa Trust.10 Society for the Promotion of Engineering Sciences and Technology in Pakistan.11 Citizens-Police Liaison Committee, Central Reporting Cell, Sindh Governor House, Karachi.12 ICIC Foundation.13 National Management Foundation.14. Endowment Fund of the institutions of the Agha Khan Development Network (Pakistan listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network.15. Shaheed Zulfigar Ali Bhutto Memorial Awards Society.16. Iqbal Memorial fund.17. Cancer Research Foundation of Pakistan, Lahore. ,18. Shaukat Khanum Memorial Trust, Lahore.19. Christian Memorial Hospital, Sialkot.20. National Museums, National Libraries and Monuments or institutions declared to be National Heritage by the Federal Government.21. Mumtaz Bakhtawar Memorial Trust Hospital, Lahore.22. Kashmir Fund for Rehabilitation of Kashmir Refugees and Freedom Fighters.23. Institutions of the Agha Khan Development Network (Pakistan) listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network.24. Azad Kashmir President's Mujahid Fund,1972.25. National Institute of Cardiovascular Diseases, (Pakistan) Karachi.26 Businessmen Hospital Trust, Lahore.27 Premier Trust Hospital, Mardan.28 Faisal Shaheed Memorial Hospital Trust, Gujranwala.29 Khair-un-Nisa Hospital Foundation, Lahore.30 Sind and Balochistan Advocates' Benevolent Fund.31 Rashid Minhas Memorial Hospital Fund.32 Any relief or welfare fund established by the Federal Government.33 Mohatta Palace Gallery Trust.34 Bagh-e-Quaid-e-Azam project, Karachi.35 Any amount donated for Tameer-e-Karachi Fund.36 Pakistan Red Cres-cent Society.37 Sank of Commerce and Credit International Foundation for Advancement of Science and Technology.38 Federal Board of Revenue Foundation.39 The Indus Hospital, Karachi.40 Pakistan Sweet Homes Angels and Fairies Place.41 Al-Shifa Trust Eye Hospital.42 Aziz Tabba Foundation.43. Sindh Institute of Urology and Transplantation,SIUT Trust and Society for the Welfare of SIUT.44. Sharif Trust.45. The Kidney Centre Post Graduate Institute.46. Pakistan Disabled Foundation.47. Sardar Trust Eye Hospital, Lahore.48. Supreme Court of Pakistan Diamer Bhasha & Mohmand Dams Fund.49. Layton Rahmatullah Benevolent Trust (LRBT).50. Akhuwat.51. The Prime Minister's COVIE)-19 Pandemic Relief Fund-2020.52. Ghulam Ishaq Khan Institute of Engineering Sciences and Technology (GIKI).53. Lahore University of Management Sciences.54. Dawat-e-Hadiya, Karachi.55. Baitussalam Welfare Trust.56. Patients' Aid Foundation.57. Alkhidmat Foundation.58. Alamqir Welfare Trust International.59. Prime Minister's Special Fund for victims of terrorism.60. Chief Ministers (Punjab) Relief Fund for Internally Displaced Persons (1DPs) of KPK.61. Prime Ministers Flood Relief Fund 2010 and Provincial Chief Ministers Relief Funds for victims of flood 2010.62. Waqf for Research on Islamic History, Art and Culture, Istanbul.================================================================================Provided that the Federal Government shall have the power to add, amend or omit any entry in this Schedule.";
FOURTEENTH SCHEDULE (See section 100E)
RULES FOR COMPUTATION OF PROFIT AND GAINS
FOR SMALL AND
MEDIUM ENTERPRISES
Application.- These rules shall apply to small and medium enterprises as defined in Clause (59A) of Section 2 of the Ordinance.
Registration.- Small and medium enterprise shall be required to register with FBR on its Iris web portal or Small and Medium Enterprises Development Authority on its SME registration portal (SMERP).
Categories and tax rates.- There shall be following two categories of small and medium enterprises and tax on their taxable income shall be computed at the tax rates given in the table below, namely:-
========================================================================================
1 Category-1 Where annual business 7.5% of taxable turnover does not exceed income Rupees 100 million2 Category-2 Where annual turnover 15% of taxable exceeds Rupees 100 Million income but does not exceed Rupees
4.Option for Final Tax Regime.-
(1) The small and medium enterprises may opt for taxation under final tax regime at the rates given in the table below:
============================================================================================Sr. No. Category Turnover Rates============================================================================================(1) (2) (3) (4)============================================================================================1 Category-1 Where annual business 0.25% of gross turnover does not exceed turnover Rupees 100 million2 Category-2 Where annual business 0.5% of gross turnover turnover exceeds Rupees 100 million but does not exceed Rupees 250 million============================================================================================(2) Option under sub-rule (1) of this rule shall be exercised at the time of filing of return of income and option once exercised shall be irrevocable for three tax years.
(3) The provisions of section 177 and 214C shall not apply to SME who opts for taxation under sub-rule (1) of this rule.
(1) SMEs who opt for taxation under normal law under rule 3 may be selected for tax audit through risk based parametric computer ballot under section 214C of the Ordinance if its tax to turnover ratio is below tax rates given in rule 4 of these rules.
(2) The cases selected under sub-rule (1) of this rule shall not exceed 5% of the total population of SMEs whose tax to turnover ratio is below tax rates given in rule 4 of these rules.
Provisions of Ordinance to apply.- The other provisions of the Ordinance shall apply mutatis mutandis to the SMEs.".
Amendments of the Federal Excise Act, 2005. - In the Federal Excise Act,
2005, the following further amendments shall be made, namely:-
(1) in section 4, in sub-section (4), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely: -
"Provided that the approval under this sub-section shall not be required if revised return is filed within sixty days of filing of the original return and either the duty payable as per the revised return is more than the amount paid or the refund claimed therein is less than the amount as claimed, under the return sought to be revised.";
(2) in section 14, after sub-section (3), the following new sub-section (4) shall be added, namely:-
"(4) The provision of sub-section (2) shall mutatis mutandis apply regarding assistance in collection and recovery of duties in pursuance of a request from a foreign jurisdiction under a tax treaty, a multilateral convention, and inter-governmental agreement or similar agreement or mechanism as the case may be.";
(3) after section 45A, the following new section 45AA shall be inserted, namely:-
"45AA. Licensing of brand name.- (1) Manufacturers of the specified goods shall be required to obtain brand licence for each brand or stock keeping unit (SKU) in such manner as may be prescribed by the Board.
(2) Any specified brand and SKU found to be sold without obtaining a licence from the Board shall be deemed counterfeit goods and liable to outright confiscation and destruction in the prescribed manner and such destruction and confiscation shall be without prejudice to any other penal action which may be taken under this Act.";
(4) in section 47A,-
(i) in the title, after the word "information", the words "or assistance in recovery of duties" shall be inserted;
(ii) after sub-section (1), the following new sub-section (1A) shall be inserted, namely:-
"(1A) Notwithstanding anything contained in this Act, the Board shall have power to share data or information including real time data videos, images received under the provisions of this Act with any other Ministry or Division of the Federal Government or Provincial Government, subject to such limitations and conditions an may be specified by the Board."; and
(iii) after sub-section (2), the following new sub-section (3) shall be added, namely:-
"(3) The Federal Government may enter into a bilateral or multilateral convention, and inter-governmental agreement or similar agreement or mechanism for assistance in the recovery of duties";
(5) in section 49, the existing sub-section shall be renumbered as sub-section (1) and thereafter the following new sub-section shall be added, namely:-
"(2) The Board may authorize and prescribe the manner in which fee and service charges collected under sub-section (1) shall be expended.";
(6) in the First Schedule, -
(a) in Table-1, in column (1 ),-
(i) S. No. 1, 2, 57 and 58 and entries relating thereto in columns
(2) , (3) and (4) shall be omitted;
(ii) after serial number 8b, the following new serial numbers and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely:-
========================================================================================8c. Tobacco mixture in 2403.9990 Rupees five an electrically thousand two heated tobacco hundred per product by kg"; whatever name called, intended for consumption by using a tobacco heating system without combustion========================================================================================(iii) against S. No. 55, in column (2), after the figure "87.02", the expression "and till the 30th day of June, 2026 electric vehicles (4 wheelers)" shall be inserted;
(iv) against serial No. 55B, in column (2),-
(a) after the figure "87.02" the expression "and till the 30th day of June, 2026 electric vehicles (4 wheelers)" shall be inserted; and
(b) in sub-serial (a), in column (2), for the expression "1000cc", the expression "851cc to 1000cc" shall be substituted; and
(v) against serial number 56, in column (3), for the figure "5502.0090", the figure "5502.9090" shall be substituted;
in Table II,-
(i) in the heading of column (2), for the word "Goods", the word "Services" shall be substituted;
(ii) against serial number 6, in column (4), for the word "seventeen", the word "sixteen" shall be substituted;
(iii) after S. No. 6, in column (1) and entries relating thereto in columns (2), (3) and (4), the following new S. Nos. shall be added, namely:-
==============================================================================================" 6A. Following telecommunication services: Respective One rupee per (a) Mobile phone call, sub-heading call in addition if call duration of 98.12 to the rates of exceeds three duty specified minutes; under Serial No.6 (b) Internet services; 9812.6000 Five rupees per GB in addition to the rates of duty specified under Serial No.6 (c) Sms services 9812.1710 Ten paisa per sms in addition to the rates of duty specified under serial no.6==============================================================================================(iv) against serial number 8, in column (2), after the word "companies" occurring for the first time, the words "excluding Merchant Discount Rate (MDR) for accepting digital payment" shall be inserted;
(7) in the Second Schedule, S. No. 1, 2 and 4 in column (1) and entries relating thereto in columns (2) and (3) shall be omitted; and
(8) in the Third Schedule, in Table-I, after S. No. 23, in column (1), the following new S. Nos. and entries relating thereto in columns (2) and (3) shall be added, namely:-
===================================================================================================="24. The following goods, when supplied within the limits of the Border Sustenance Markets, established in cooperation with Iran and Afghanistan: (i) Animal Fats and Oil and their fractions 1516.1000 (ii) Vegetable Fats and their fractions 1516.2010 (iii) Vegetable Oils and their fractions 1516.2020 Provided that, such items in case of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of duty involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction: Provided further that, the said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets.25. Import and supply of raw materials, Respective components, parts and plant and headings machinery by registered persons authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions."====================================================================================================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, 2021 and shall come into force on the first day of July, 2021
The Income Tax (Amendment) Ordinance, 2021 (Ordinance II of 2021), Tax laws (Amendment) Ordinance, 2021 (Ordinance VI of 2021) and Tax Laws (Second Amendment) Ordinance, 2021 (Ordinance VII of 2021) shall stand rescind on the coming into force of this act.
(Shaukat Fayaz Ahmed Tarin)
Minister for Finance & Revenue
Copyright Business Recorder, 2021