Copy of the Finance Bill 2013 presented in the Federal Budget 2013-14 Pakistan (Raw format).
beginning on the first day of July, 2013, and to amend and enact certain laws
WHEREAS it is expedient to make provisions to give effect to the financial
proposals of the Federal Government for the year beginning on the first day of July,
2013, and to amend certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:-
1. Short title, extent and commencement. – (1) This Act may be called the
Finance Act, 2013.
(2) It extends to the whole of Pakistan.
(3) It shall, unless otherwise provided, come into force on the first day of July,
2013.
2. Amendments of Act IV of 1969.― In the Customs Act, 1969 (IV of 1969), the
following further amendments shall be made, namely:-
(1) in section 2, in clause (la), after the figure “104” the comma and figure “,
121” shall be inserted;
(2) after section 3DD, the following new section shall be inserted, namely:-
“3DDD. Directorate General of Input Output Co-efficient
Organization.- The Director General of Input Output Co-Efficient
Organization (IOCO) shall consist of a Director General and as many
Directors, Additional Directors, Deputy Directors, Assistant Directors and 2
such other officers as the Board may, by notification in the official Gazette,
appoint.”;
(3) for section 14A, the following shall be substituted; namely:-
“14A. Provision of security and accommodation at Customs-ports,
etc.- (1) Any agency or person including port authorities managing or
owning a customs-port, a customs-airport or a land customs station or a
container freight station shall provide at its or his own cost adequate
security and accommodation to customs staff for residential purposes,
offices, examination of goods, detention and storage of goods and for
other departmental requirements to be determined by the Collector of
Customs and shall pay utility bills, rent and taxes in respect of such
accommodation.
(2) Any agency or person including but not limited to port
authorities managing or owning a customs port, a customs airport or a
land customs station or a container freight station shall entertain delay
and detention certificate issued by an officer not below the rank of
Assistant Collector of Customs and also refund demurrage charges which
the agency or person has received on account of delay because of no
fault of importers or exporters.”;
(4) in section 32, in sub-section (4), after the brackets and figure “(3)”, the
words, figure and brackets “or sub-section (3A)” shall be inserted;
(5) in section 81,3
(a) in sub-sections (1), (2), (3), (4) and (5), the words “or a post-dated
cheque”, wherever occurring, shall be omitted;
(b) in the Explanation, for the words “post-dated cheque” the words
“pay order” shall be substituted;
(6) in section 83, in sub-section (2), the comma and figure “,80A” shall be
omitted;
(7) in section 179, in sub-section (1), after clause (vi), the following proviso
shall be added, namely:-
“Provided that in cases of goods to be exported, the above officers
of Customs shall have their jurisdiction and powers in terms of FOB value
and twice their respective monetary limit.”;
(8) in section 196, in sub-section (1), after the word “Investigation” a comma
and the words “, or Director of Valuation” shall be inserted;
(9) in section 202B, for the words “Pakistan Customs Service”, wherever
occurring, the words “Customs Service of Pakistan, as defined under the
Occupational Groups and Services (Probation, Training and Seniority)
Rules, 1990,” shall be substituted; and
(10) the amendments set out in the Schedule to this Act shall be made in the
First Schedule to the Customs Act, 1969 (IV of 1969).
3. Amendments of the Sales Tax Act, 1990. ― In the Sales Tax Act, 1990, the
following further amendments shall be made, namely:-
(1) in section 2,–4
(i) after clause (5AB), the following new clause shall be inserted,
namely:-
“(5AC)“CREST” means the computerized program for analyzing
and cross-matching of sales tax returns, also referred to as
Computerized Risk-based Evaluation of Sales Tax;”;
(ii) for clause (22A), the following shall be substituted namely:-
“(22A) “Provincial Sales Tax” means tax levied under provincial
laws or laws relating to Islamabad Capital Territory, which
are declared by the Federal Government through notification
in the official Gazette, to be provincial sales tax for the
purpose of input tax;”;
(iii) after clause (33), the following new clause shall be inserted,
namely:-
“(33A) “supply chain” means the series of transactions between
buyers and sellers from the stage of first purchase or import
to the stage of final supply;”;
(iv) in clause (44),-
(a) in sub-clause (a), after the words "recipient of the supply",
the words "or the time when any payment is received by the
supplier in respect of that supply, whichever is earlier” shall
be inserted; and
(b) in sub-clause (c), for the “semicolon” a “colon” shall be
substituted and thereafter the following proviso shall be
added, namely:-5
“Provided that in respect of sub-clause (a), (b) or (c),
where any part payment is received,―
(i) for the supply in a tax period, it shall be accounted for
in the return for that tax period; and
(ii) in respect of exempt supply, it shall be accounted for
in the return for the tax period during which the
exemption is withdrawn from such supply;”;
(2) in section 3,―
(a) for the word “sixteen”, wherever occurring, the word “seventeen”
shall be substituted;
(b) after sub-section (1), the following new sub-sections shall be
inserted, namely:–
“(1A) Subject to the provision of sub-section (6) of section 8 or any
notification issued thereunder, where taxable supplies are made to a
person who has not obtained registration number, there shall be charged,
levied and paid a further tax at the rate of two per cent of the value in
addition to the rate specified in sub-sections (1), (1B), (2), (5) and (6) of
this section:
Provided that the Federal Government may, by notification in the
official Gazette, specify the taxable supplies in respect of which the further
tax shall not be charged, levied and paid.6
(1B) The Board may, by notification in the official Gazette, in lieu
of levying and collecting tax under sub-section (1) on taxable supplies,
levy and collect tax---
(a) on the production capacity of plants, machinery, undertaking,
establishments or installations producing or manufacturing
such goods; or
(b) on fixed basis, as it may deem fit, from any person who is in
a position to collect such tax due to the nature of the
business.”; and
(c) in sub-section (5), for the words “such extra amount of tax” the
words “tax at such extra rate or amount” shall be substituted”;
(3) in section 8, in sub-section (1), after clause (ca), the following new clause
shall be inserted, namely:-
“(caa) purchases, in respect of which a discrepancy is indicated by
CREST or input tax of which is not verifiable in the supply chain;”;
(4) in section 21,-
(a) in sub-section (3), the words and figure “unless the registered buyer
has fulfilled his responsibilities under section 73” shall be omitted;
(b) after sub-section (3), the following new sub-section shall be added,
namely:–
“(4) Notwithstanding anything contained in this Act, where the
Board, the Commissioner or any officer authorized by the
Board in this behalf has reasons to believe that a registered 7
person is engaged in issuing fake or flying invoices, claiming
fraudulent input tax or refunds, does not physically exist or
conduct actual business, or is committing any other
fraudulent activity, the Board, Commissioner or such officer
may after recording reasons in writing, block the refunds or
input tax adjustments of such person and direct the
concerned Commissioner having jurisdiction for further
investigation and appropriate legal action.”;
(5) in section 22, in sub-section (1),―
(a) in clause (e), the word “and”, at the end, shall be omitted; and
(b) after clause (e), amended as aforesaid, the following new clause
shall be inserted, namely:–
“(ea) record relating to gate passes, inward or outward, and
transport receipts.”;
(6) in section 25, after sub-section (5), the following explanation shall be
added, namely:–
“Explanation.- For the purpose of sections 25, 38, 38A, 38B and
45A and for removal of doubt, it is declared that the powers of the Board,
Commissioner or officer of Inland Revenue under these sections are
independent of the powers of the Board under section 72B and nothing
contained in section 72B restricts the powers of the Board, Commissioner
or officer of Inland Revenue to have access to premises, stocks, accounts, 8
records, etc. under these sections or to conduct audit under these
sections.”;
(7) in section 40B, after the word “Board” the words “or Chief Commissioner”
shall be inserted.
(8) after section 40B, the following new section shall be inserted, namely:–
“40C. Monitoring or tracking by electronic or other means.―
(1) Subject to such conditions, restrictions and procedures, as it may
deem fit to impose or specify, the Board may, by notification in the official
Gazette, specify any registered person or class of registered persons or
any good or class of goods in respect of which monitoring or tracking of
production, sales, clearances, stocks or any other related activity may be
implemented through electronic or other means as may be prescribed.
(2) From such date as may be prescribed by the Board, no
taxable goods shall be removed or sold by the manufacturer or any other
person without affixing tax stamp, banderole, stickers, labels, etc. in any
such form, style and manner as may be prescribed by the Board in this
behalf.”;
(9) in section 45B, in sub-section (1), the following new sub-section shall be
inserted, namely:–
“(1A) Where in a particular case, the Commissioner (Appeals) is of
the opinion that the recovery of tax levied under this Act, shall cause
undue hardship to the taxpayer, he, after affording opportunity of being
heard to the Commissioner or officer of Inland Revenue against whose 9
order appeal has been made, may stay the recovery of such tax for a
period not exceeding thirty days in aggregate.”;
(10) for section 57 the following shall be substituted, namely:–
“57. Rectification of mistake.― (1) The Commissioner, the
Commissioner (Appeals) or the Appellate Tribunal may, by an order in
writing, amend any order passed by him to rectify any mistake apparent
from the record on his or its own motion or any mistake brought to his or
its notice by a taxpayer or, in the case of the Commissioner (Appeals) or
the Appellate Tribunal, the Commissioner.
(2) No order under sub-section (1) which has the effect of
increasing an assessment, reducing a refund or otherwise applying
adversely to the taxpayer shall be made unless the taxpayer has been
given a reasonable opportunity of being heard.
(3) Where a mistake apparent on the record is brought to the
notice of the Commissioner or Commissioner (Appeals), as the case may
be, and no order has been made under sub-section (1), before the
expiration of the financial year next following the date on which the
mistake was brought to their notice, the mistake shall be treated as
rectified and all the provisions of this Act shall have effect accordingly.
(4) No order under sub-section (1) shall be made after five years
from the date of the order sought to be rectified.";
(11) after section 72B, the following new section shall be inserted, namely:-10
“72C.- Reward to Inland Revenue officers and officials.- (1) In
cases involving concealment or evasion of sales tax and other
taxes, cash reward shall be sanctioned to the officers and officials
of Inland Revenue for their meritorious conduct in such cases and
to the informer providing credible information leading to such
detection, as may be prescribed by the Board, only after realization
of part or whole of the taxes involved in such cases.
(2) The Board may, by notification in the official Gazette,
prescribe the procedure in this behalf and specify the
apportionment of reward sanctioned under this section for individual
performance or to collective welfare of the officers and officials of
Inland Revenue.”;
(12) in section 73, in the explanation, after the words “is registered” the words,
letters and figure “through Form STR 1 or change of particulars in
registration database” shall be inserted;
(13) in the Third Schedule, in column (1), after serial number 21 and the entries
relating thereto in columns (2) and (3), the following new serial numbers
and the entries relating thereto shall be added, namely:–
“22. Finished or made-up articles of textile and
leather, including garments, footwear, and
bed ware, sold in retail packing
Respective
headings.
23. Household electrical goods, including air
conditioners, refrigerators, deep freezers,
Respective
headings.11
televisions, recorders and players, electric
bulbs, tube-lights, fans, electric irons,
washing machines and telephone sets
24. Household gas appliances, including
cooking range, ovens, geysers and gas
heaters
Respective
headings.
25. Foam or spring mattresses, and other foam
products for household use
Respective
headings.
26. Auto parts and accessories sold in retail
packing
Respective
headings.
27. Lubricating oils, brake fluid, transmission
fluid, and other vehicular fluids and
maintenance products in retail packing
Respective
headings.
28. Tyres and tubes Respective
headings.
29. Storage batteries Respective
headings.
30. Arms and ammunition Respective
headings.
31. Paints, distempers, enamels, pigments,
colours, varnishes, gums, resins, dyes,
glazes, thinners, blacks, cellulose lacquers
and polishes sold in retail packing
Respective
headings.12
32. Fertilizers Respective
headings.
33. Cement sold in retail packing Respective
headings.
34. Tiles sold in retail packing Respective
headings.
35. Biscuits, confectionary, chocolates, toffees
and candies
Respective
headings.
36. Other goods and products sold in retail
packing
Respective
headings.”;
and
(14) in the Sixth Schedule,―
(a) in Table-1, serial number 25 in column (1) and the entries relating
thereto in columns (2) and (3) shall be omitted; and
(b) in Table-2, serial number 12 in column (1) and the entries relating
thereto in columns (2) and (3) shall be omitted.
4. Amendment of Ordinance XLIX of 2001.─ In the Income Tax Ordinance, 2001
(XLIX of 2001), the following further amendments shall be made, namely:-
(1) in section 8,in clause (e), in sub-clause (ii), for the colon a full stop shall be
substituted and thereafter the proviso shall be omitted;
(2) in section 56, in sub-section (1), after the word “income”, occurring for the
third time, the words and figure “except income under the head salary”
shall be inserted;13
(3) in section 59AA, in sub-section (5), after the word “requirements”, the
words “ and group designation rules or regulations” shall be inserted;
(4) in section 59B, in sub-section (2), in clause (g), after the word
“requirements”, the words “and group designation rules or regulations”
shall be inserted;
(5) in section 80, in sub-section (2), in clause (b),-
(a) for sub-clause (v), the following shall be substituted, namely,-
“(v) a co-operative society, a finance society or any other
society;”;
(b) after sub-clause (v), substituted as aforesaid, the following new
sub-clauses shall be inserted, namely:-
“(va) a non-profit organization;
(vb) a trust, an entity or a body of persons established or
constituted by or under any law for the time being in force;”;
(6) in section 111, in sub-section (1), for full stop, at the end, a colon shall be
substituted and thereafter the following proviso shall be added, namely:-
“Provided that where a taxpayer explains the nature and source of
the amount credited or the investment made, money or valuable article
owned or funds from which the expenditure was made, by way of
agricultural income, such explanation shall be accepted to the extent of
agricultural income worked back on the basis of agricultural income tax
paid under the relevant provincial law.”;
(7) in section 113,-14
(a) in sub-section (1), in clause (e), for the word “one-half” the word
“one” shall be substituted; and
(b) in sub-section (2),-
(i) in clause (b), for the word “one-half” the word “one” shall be
substituted; and
(ii) in clause (c), after the comma, occurring for the first time,
the words, figures and brackets “clause (1) of Division I, or”
shall be inserted;
(8) for section 113A, the following shall be substituted, namely:-
“113A. Minimum tax on builders.- (1) Subject to this Ordinance,
where a person derives income from the business of construction and sale
of residential, commercial or other buildings, he shall pay minimum tax at
the rate of rupees twenty five per square foot as per the construction or
site plan approved by the relevant regulatory authority.
(2) The minimum tax to be paid under this section shall be computed
on the basis of total number of square feet sold or booked for sale during
the year.
(3) The tax paid under this section shall be minimum tax on the income
of the builder from the sale of such residential, commercial or other
building.”;
(9) for section 113B the following shall be substituted, namely,-
“113B. Minimum tax on land developers.- (1) Subject to this
Ordinance, where a person derives income from the business of 15
development and sale of residential, commercial or other plots, he shall
pay minimum tax at the rate of rupees fifty per square yard as per the lay
out or site plan approved by the relevant regulatory authority.
(2) The tax computed under sub-section (1) shall be paid on the basis
of total number of square yards sold or booked for sale during the year.
(3) The tax paid under this section shall be minimum tax on the income
of the developer from the sale of such residential, commercial or other
plots sold or booked.”;
(10) in section 114,-
(A) in sub-section (1), in clause (b),-
(i) in sub-clause (viii),-
(a) for the words “one million” the words “five hundred
thousand ” shall be substituted; and
(b) for the full stop, occurring at the end, a semicolon
shall be substituted; and
(ii) after sub-clause (viii), amended as aforesaid, the following
new sub-clause shall be added, namely:-
“(ix) is registered with any Chamber of Commerce and
Industry or any trade or business association or any
market committee or any professional body including
Pakistan Engineering Council, Pakistan Medical and
Dental Council, Pakistan Bar Council or any
Provincial Bar Council, Institute of Chartered 16
Accountants of Pakistan or Institute of Cost and
Management Accountants of Pakistan.”;
(B) in sub-section (1A), for the words “three hundred and fifty
thousand” the words “four hundred thousand” shall be substituted;
(C) in sub-section (4), after the word “longer” the words “or shorter”
shall be inserted; and
(D) in sub-section (6), in clause (b), the word “and” shall be omitted and
thereafter a new clause shall be inserted, namely:-
“(ba) it is accompanied by approval of the Commissioner in
writing for revision of return; and”;
(11) in section 115,-
(a) sub-section (1) and the proviso thereunder shall be omitted;
(b) for sub-section (4), the following shall be substituted, namely:-
“(4) Any person who is not obliged to furnish a return for a tax
year because all the person’s income is subject to final
taxation under sections 5, 6, 7, 15, 148, 151 and 152, subsection (3) of section 153, sections 154, 156 and 156A, subsection (3) of section 233, sub-section (5) of section 234 or
sub-section (3) of section 234A shall furnish to the
Commissioner a statement showing such particulars relating
to the person’s income for the tax year in such form and
verified in such manner as may be prescribed.”;
(12) in section 116,-17
(a) in sub-section (1), after the word “person”, occurring for the first
time, the words “being an individual” shall be inserted;
(b) in sub-section (2),-
(i) the words and comma “whose last declared or assessed
income or the declared income for the year, is one million
rupees or more” shall be omitted; and
(ii) in the proviso, the words and commas “whose share from
the income of such association of persons, before tax, for
the year is one million rupees or more” shall be omitted;
(c) in sub-section (3), after the word “statement”, occurring for the third
time, the words and comma “along with the revised wealth
reconciliation and the reasons for filing revised wealth statement,”
shall be inserted; and
(d) in sub-section (4),-
(i) after the word “company”, the words “or an association of
persons” shall be inserted; and
(ii) the words and comma “and has paid tax amounting to thirtyfive thousand rupees or more for the tax year,” shall be
omitted;
(13) in section 118,-
(a) in sub-section (1), the words, figure and comma “an employer’s
certificate under section 115,” shall be omitted;18
(b) after sub-section (2) the following new sub-section shall be
inserted, namely,-
“(2A) Where salary income for the tax year is five hundred
thousand rupees or more, the taxpayer shall file return of income
electronically in the prescribed form and it shall be accompanied by
the proof of deduction or payment of tax and wealth statement as
required under section 116.”;
(c) in sub-section (3),-
(i) the words and comma “an Annual Statement of deduction of
income tax from salary, filed by the employer of an
individual” shall be omitted; and
(ii) for clause (a) the following shall be substituted, namely:-
“(a) in the case of a statement required under sub-section
(4) of section 115 or a return required to be filed
through e-portal in the case of a salaried individual,
on or before the 31st day of August next following the
end of the tax year to which the statement or return
relates; or”; and
(d) in sub section (6),-
(i) the words “or employer’s certificate” shall be omitted; and
(ii) the words “or certificate”, occurring twice, shall be omitted;
(14) in section 119,-
(a) in sub-section (1),-19
(i) clause (b) shall be omitted; and
(ii) the word and comma “certificate,”, occurring for the second
time, shall be omitted;
(b) in sub-section (2), the words and comma “employer’s certificate,”
shall be omitted; and
(c) in sub-section (3),-
(i) the words and comma “employer’s certificate,” shall be
omitted; and
(ii) the word and comma “certificate,”, occurring for the second
time, shall be omitted;
(15) section 120A shall be omitted;
(16) in section 122C and the provisos thereunder, for the word “sixty”,
wherever occurring, the word “forty-five” shall be substituted;
(17) in section 130, in sub-section (3),-
(a) in clause (a), the word “or”, occurring at the end, shall be omitted;
(b) in clause (b), for full stop a semicolon and the word “;or” shall be
substituted; and
(c) after clause (b), amended as aforesaid, the following new clause
shall be added, namely:-
“(c) is an officer of Inland Revenue Service and a law graduate
having at least fifteen years of service in BS-17 and above.”;
(18) in sub-section 149, in sub-section (1),-20
(a) for the word “employer” the words “person responsible for” shall be
substituted;
(b) after the word “adjustment” the words, figures and commas “of tax
withheld from employee under other heads and tax credit
admissible under sections 61, 62, 63 and 64 during the tax year
after obtaining documentary evidence, as may be necessary”, shall
be omitted; and
(c) clause (i) shall be omitted;
(19) in section 152, after sub-section (7), the following new sub-section shall be
added, namely,-
“(8) In this section “prescribed person” means a prescribed
person as defined in sub-section (7) of section 153.”;
(20) in section 153,-
(A) in sub-section (7),-
(a) in clause (i),-
(i) in sub-clause (h), the word “or”, occurring at the end,
shall be omitted;
(ii) in sub-clause (i), after the semi-colon the word “or”
shall be added; and
(iii) after sub-clause (i), amended as aforesaid, the
following new sub-clause shall be added, namely:-
“(j) a person registered under the Sales Tax
Act, 1990;”;21
(21) section 153A shall be omitted;
(22) in section 155, in sub-section (3),-
(a) in clause (v), after the word “organization” the words “or a
charitable institution” shall be inserted;
(b) in clause (vi), the word “or” shall be omitted; and
(c) after clause (vi), amended as aforesaid, the following new clauses
shall be inserted, namely:-
“(via) a private educational institution, a boutique, a beauty
parlour, a hospital, a clinic or a maternity home;
(vib) individuals or association of persons paying gross
rent of rupees one and a half million and above in a
year; or”;
(23) in section 164, in sub-section (2), the words and figure “and such
certificate shall be treated as sufficient evidence of the collection or
deduction for the purposes of section 168” shall be omitted;
(24) in section 165,-
(a) in sub-section (1), after the proviso, the following explanation shall
be added, namely:-
“Explanation.- For the removal of doubt, it is clarified that
this sub-section overrides all conflicting provisions contained in the
Protection of Economic Reforms Act, 1992 (XII of 1992), the
Banking Companies Ordinance, 1962 (LVII of 1962), the Foreign
Exchange Regulation Act, 1947 (VII of 1947) and the regulations22
made under the State Bank of Pakistan Act,1956 (XXXIII of 1956) ,
if any, on the subject, in so far as divulgence of information under
section 165 is concerned.”; and
(b) in sub-section (6), for the semicolon a full stop shall be substituted
and thereafter the proviso shall be omitted;
(25) after section 165, the following new section shall be added, namely:-
“165A. Furnishing of information by banks.- (1)
Notwithstanding anything contained in any law for the time being in force
including but not limited to the Banking Companies Ordinance, 1962 (LVII
of 1962), the Protection of Economic Reforms Act, 1992 (XII of 1992), the
Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations
made under the State Bank of Pakistan Act,1956 (XXXIII of 1956), if any,
on the subject, every banking company shall make arrangements to
provide to the Board in the prescribed form and manner,-
(a) online access to its central database containing
details of its account holders and all
transactions made in their accounts;
(b) a list containing particulars of deposits
aggregating rupees one million or more made
during the preceding calendar month;
(c) a list of payments made by any person against
bills raised in respect of a credit card issued to
that person, aggregating to rupees one 23
hundred thousand or more during the
preceding calendar month;
(d) a consolidated list of loans written off
exceeding rupees one million during a calendar
year; and
(e) a copy of each Currency Transactions Report
and Suspicious Transactions Report generated
and submitted by it to the Financial Monitoring
Unit under the Anti-Money Laundering Act,
2010 (VII of 2010).
(2) Each banking company shall also make
arrangements to nominate a senior officer at the head office to
coordinate with the Board for provision of any information and
documents in addition to those listed in sub-section (1), as may be
required by the Board.
(3) The banking companies and their officers shall not be
liable to any civil, criminal or disciplinary proceedings against them
for furnishing information required under this Ordinance.
(4) Subject to section 216, all information received under
this section shall be used only for tax purposes and kept
confidential.”;
(26) in section 169, in sub-section (3), the words “other than dividend received
by a company” shall be omitted.;24
(27) in section 171, in sub-section (2), after clause (c), the following
explanation shall be added, namely:-
“Explanation.- For the removal of doubt, it is clarified that where a
refund order is made on an application under sub-section (1) of section
170, for the purpose of compensation, the refund becomes due from the
date refund order is made and not from the date the assessment of
income treated to have been made by the Commissioner under section
120.”;
(28) in section 172, in sub-section (3), in clause (b), for the semicolon, a colon
shall be substituted and thereafter the following explanation shall be
added, namely:-
“Explanation.- In this clause the expression “business connection”
includes transfer of an asset or business in Pakistan by a non-resident;”;
(29) in section 177, after sub-section (10), the following explanation shall be
added, namely:-
“Explanation.- For the removal of doubt, it is declared that the
powers of the Commissioner under this section are independent of the
powers of the Board under section 214C and nothing contained in section
214C restricts the powers of the Commissioner to call for the record or
documents including books of accounts of a taxpayer for audit and to
conduct audit under this section.”;
(30) in section 178, the words and commas “Federal Excise, Sales Tax,” shall
be omitted;25
(31) in section 181, in sub-section (3), for the full stop at the end a colon shall
be substituted and thereafter a proviso shall be added, namely:-
“Provided that the Board may in case of individuals allow, in place
of National Tax Number use of Computerized National Identity Card
issued by the National Database and Registration Authority,.”;
(32) after section 181B, the following new section shall be added, namely:-
“181C. Displaying of National Tax Number.- Every person
deriving income from business chargeable to tax, who has been issued a
National Tax Number, shall display his National Tax Number at a
conspicuous place at every place of his business.”;
(33) in section 182, in sub-section (1), in the Table, in column (1),-
(a) against S.No.1,-
(i) in column (2), for the words and figures “Where any person
fails to furnish a return of income or a statement as required
under section 115 or wealth statement or wealth
reconciliation statement or statement under section 165
within the due date” the words and figure “Where any person
fails to furnish a return of income as required under section
114 within the due date” shall be substituted;
(ii) in column (3), for the words and figures “Such person shall
pay a penalty equal to 0.1% of the tax payable for each day
of default subject to a minimum penalty of five thousand
rupees and a maximum penalty of 25% of the tax payable in
respect of that tax year” the words and figures “Such person 26
shall pay a penalty equal to 0.1% of the tax payable in
respect of that tax year for each day of default subject to a
maximum penalty of 50% of the tax payable provided that if
the penalty worked out as aforesaid is less than twenty
thousand rupees or no tax is payable for that tax year such
person shall pay a penalty of twenty thousand rupees” shall
be substituted;
(iii) in column (4), for the commas, figures and words “,115,116
and 165” the word and figures “and 118” shall be substituted;
(b) after S.No.1, amended as aforesaid, the following new serial
numbers and the entries relating thereto in columns (2), (3) and (4)
shall be inserted, namely:-
“1A. Where any person
fails to furnish a
statement as
required under
section 115, 165 or
165A within the due
date.
Such person shall pay a
penalty of Rs.2500 for
each day of default
subject to a minimum
penalty of fifty
thousand rupees:
115, 165
and
165A27
1AA. Where any person
fails to furnish
wealth statement or
wealth reconciliation
statement.
Such person shall pay a
penalty of Rs.100 for
each day of default.
114, 115
and 116”;
(c) against S.No.8,-
(i) in paragraph (a), in column (3), for the word “five” the word
“twenty-five” shall be substituted;
(ii) in paragraph (b), in column (3), for the word “ten” the word
“fifty” shall be substituted; and
(iii) in paragraph (c), in column (3), for the word “fifty” the words
“one hundred” shall be substituted;
(d) against S.No.9, in column (3),-
(i) for the word “five” the word “twenty-five” shall be substituted;
(ii) for the word “ten” the word “fifty” shall be substituted; and
(e) after S.No.15, the following new serial number and the entries
relating thereto in columns (2), (3) and (4) shall be added,
namely:-28
“16. Any person who fails
to display NTN
Certificate at the
place of business as
required under this
Ordinance or the
rules made
thereunder.
Such person shall
pay a penalty of five
thousand rupees.
181C”;
(34) in section 210, in sub-section (1), for the words and comma, “Officer of
Inland Revenue, subordinate to the Commissioner” the words and
commas “Additional Commissioner, Deputy Commissioner, Assistant
Commissioner or Inland Revenue Officer” shall be substituted;
(35) in section 214C,-
(a) after sub-section (1), the following new sub-section shall be added,
namely:-
“(1A) Notwithstanding anything contained in this Ordinance
or any other law, for the time being in force, the Board shall keep
the parameters confidential”; and
(b) after sub-section (3), the following explanation shall be added,
namely:-
“Explanation.- For the removal of doubt, it is declared that
the powers of the Commissioner under section 177 are
independent of the powers of the Board under this section and 29
nothing contained in this section restricts the powers of the
Commissioner to call for the record or documents including books
of accounts of a taxpayer for audit and to conduct audit under
section 177.”;
(36) after section 227, the following new section shall be inserted, namely:-
“227A.- Reward to Inland Revenue officers and officials. (1) In
cases involving concealment or evasion of income tax and other taxes,
cash reward shall be sanctioned to the officers and officials of Inland
Revenue for their meritorious conduct in such cases and to the informer
providing credible information leading to such detection, as may be
prescribed by the Board, only after realization of part or whole of the taxes
involved in such cases.
(2) The Board may, by a notification in the official Gazette,
prescribe the procedure in this behalf and specify the apportionment of
reward sanctioned under this section for individual performance or to
collective welfare of the officers and officials of Inland Revenue.”;
(37) in Chapter XI,-
(a) in Part II, for the heading “DIRECTORATE-GENERAL OF
INTERNAL AUDIT” the heading “DIRECTORATES-GENERAL”
shall be substituted; and
(b) in Part III, for the heading “DIRECTORATE-GENERAL OF
WITHHOLDING TAXES” the heading “DIRECTORATESGENERAL” shall be substituted; 30
(38) after section 230A, the following new sections shall be inserted, namely:-
“230B. Directorate-General of Law. — (1) The DirectorateGeneral of Law shall consist of a Director General and as many Directors,
Additional Directors, Deputy Directors, Assistant Directors, Law Officers
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, specify
the functions, jurisdiction and powers of the Directorate- General of Law.
230C. Directorate-General of Research and
Development.-(1) The Directorate-General of Research and
Development 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,
specify the functions, jurisdiction and powers of the DirectorateGeneral of Research and Development.”;
(39) in section 233AA,-
(a) after the word “Pakistan”, the words and commas “ ,margin
financiers, trading financiers and lenders” shall be inserted;
(b) after the word “business”, the words, figure, brackets and commas
“or providing of any margin financing, margin trading or securities 31
lending under Securities (Leveraged Markets and Pledging) Rules,
2011 in share business” shall be inserted; and
(c) for the letters “IIA” the letters “IIB” shall be substituted;
(40) in section 234,-
(a) in sub-section (1), after the word “in” the words and letters “
Division III of” shall be inserted;
(b) in sub-section (2),-
(i) for the comma, occurring first, the words “or lump sum” shall
be substituted; and
(ii) after the word “installment”, occurring for the second time,
the words “or lump sum” shall be inserted;
(c) for sub-section (5) the following shall be substituted, namely:-
“ (5) Advance tax collected under this section shall be
adjustable.”;
(41) after section 236C, the following new section shall be inserted, namely:-
“236D. Advance tax on functions and gatherings.- (1) Every
prescribed person shall collect advance tax at the rate specified in Division
XI of Part IV of the First Schedule on the total amount of the bill from a
person arranging or holding a function in a marriage hall, marquee, hotel,
restaurant, commercial lawn, club, a community place or any other place
used for such purpose.
(2) Where the food, service or any other facility is provided by
any other person, the prescribed person shall also collect advance tax on 32
the payment for such food, service or facility at the rate specified in
Division XI of Part IV of the First Schedule from the person arranging or
holding the function.
(3) The advance tax collected under sub-section (1) and subsection (2) shall be adjustable.
(4) In this section,-
(a) “function” includes any wedding related event, a
seminar, a workshop, a session, an exhibition, a
concert, a show, a party or any other gathering held
for such purpose; and
(b) “prescribed person” includes the owner, a leaseholder, an operator or a manager of a marriage hall,
marquee, hotel, restaurant, commercial lawn, club, a
community place or any other place used for such
purpose.
“236E. Advance tax on foreign-produced films, TV
plays and serials.- (1) Any person responsible for censoring or
certifying a foreign-produced film, a TV drama serial or a play, for
screening and viewing, shall, at the time of censoring or certifying,
collect advance tax at the rates specified in Division XII of Part IV of
the First Schedule.
(2) The advance tax collected under sub-section (1) shall
be adjustable. 33
236F. Advance tax on cable operators and other
electronic media.- (1) Pakistan Electronic Media Regulatory
Authority, at the time of issuance of license for distribution services
or renewal of the license to a licensee, shall collect advance tax at
the rates specified in Division XIII of Part IV of the First Schedule.
(2) The tax collected under sub-section (1) shall be
adjustable.
(3) For the purpose of this section, "cable television
operator", “DTH”, “Distribution Service”, “electronic media”, "IPTV",
"loop holder", “MMDS”, "mobile TV", shall have the same meanings
as defined in Pakistan Electronic Media Regulatory Authority
Ordinance, 2002 (XIII of 2002) and Pakistan Electronic Media
Regulatory Authority Rules, 2009.
236G. Advance tax on sales to distributors, dealers and
wholesalers.- (1) Every manufacturer or commercial importer of
electronics, sugar, cement, iron and steel products, fertilizer,
motorcycles, pesticides, cigarettes, glass, textile, beverages, paint
or foam sector, at the time of sale to distributors, dealers and
wholesalers, shall collect advance tax at the rate specified in
Division XIV of Part IV of the First Schedule, from the aforesaid
person to whom such sales have been made.
(2) Credit for the tax collected under sub-section (1) shall
be allowed in computing the tax due by the distributor, dealer or 34
wholesaler on the taxable income for the tax year in which the tax
was collected.
236H. Advance tax on sales to retailers.- (1) Every
manufacturer, distributor, dealer, wholesaler or commercial
importer of electronics, sugar, cement, iron and steel products,
fertilizer, motorcycles, pesticides, cigarettes, glass, textile,
beverages, paint or foam sector, at the time of sale to retailers,
shall collect advance tax at the rate specified in Division XV of Part
IV of the First Schedule, from the aforesaid person to whom such
sales have been made.
(2) Credit for the tax collected under sub-section (1) shall
be allowed in computing the tax due by the retailer on the taxable
income for the tax year in which the tax was collected.
236I. Collection of advance tax by educational
institutions.- (1) There shall be collected advance tax at the rate
specified in Division XVI of Part-IV of the First Schedule on the
amount of fee paid to an educational institution.
(2) The person preparing fee voucher or challan shall
charge advance tax under sub-section (1) in the manner the fee is
charged.
(3) Advance tax under this section shall not be collected
from a person where annual fee does not exceed two hundred
thousand rupees.35
(4) The term “fee” includes, tuition fee and all charges
received by the educational institution, by whatever name called,
excluding the amount which is refundable.
(5) Tax collected under this section shall be adjustable
against the tax liability of either of the parents or guardian making
payment of the fee.
236J. Advance tax on dealers, commission agents and
arhatis etc.- (1) Every market committee shall collect advance tax
from dealers, commission agents or arhatis, etc. at the rates
specified in Division XVII of Part-IV of the First Schedule at the
time of issuance or renewal of licences.
(2) The advance tax collected under sub-section (1) shall
be adjustable.
(3) In this section “market committee” includes any
committee or body formed under any provincial or local law made
for the purposes of establishing, regulating or organizing
agricultural, livestock and other commodity markets.”; and
(42) in section 239B, after the word “thereunder”, the words “and in any other
law in force at the time of promulgation of this Ordinance” shall be
inserted.
(43) in the FIRST SCHEDULE,-
(I) in Part I,-
(A) in Division I,-36
(i) in clause (1), for the TABLE the following shall be
substituted, namely:-
“TABLE
S.No. Taxable income Rate of tax
(1) (2) (3)
1. Where the taxable income
does not exceed Rs.400,000
0%
2. Where the taxable income
exceeds Rs.400,000 but does
not exceed Rs.750,000
10% of the amount
exceeding
Rs.400,000
3. Where the taxable income
exceeds Rs.750,000 but does
not exceed Rs.1,500,000
Rs.35,000 + 15%
of the amount
exceeding
Rs.750,000
4. Where the taxable income
exceeds Rs.1,500,000 but
does not exceed Rs.2,500,000
Rs.147,500 + 20%
of the amount
exceeding
Rs.1,500,000
5. Where the taxable income
exceeds Rs.2,500,000 but
does not exceed Rs.4,000,000
Rs.347,500 + 25%
of the amount
exceeding 37
Rs.2,500,000
6. Where the taxable income
exceeds Rs.4,000,000 but
does not exceed Rs.6,000,000
Rs. 722,500 + 30%
of the amount
exceeding
Rs.4,000,000
7. Where the taxable income
exceeds Rs.6,000,000
Rs. 1,322,500 +
35% of the amount
exceeding
Rs.6,000,000”; and
(ii) in clause (1A),-
(a) for the TABLE the following shall be
substituted, namely:-
“TABLE
S.No. Taxable income. Rate of tax.
(1) (2) (3)
1. Where the taxable
income does not exceed
Rs.400,000
0%
2. Where the taxable
income exceeds
5% of the
amount 38
Rs.400,000 but does not
exceed Rs.500,000
exceeding
Rs.400,000
3. Where the taxable
income exceeds
Rs.500,000 but does not
exceed Rs.800,000
Rs.5,000 +
7.5% of the
amount
exceeding
Rs.500,000
4. Where the taxable
income exceeds
Rs.800,000 but does not
exceed Rs.1,300,000
Rs.27,500 +
10% of the
amount
exceeding
Rs.800,000
5. Where the taxable
income exceeds
Rs.1,300,000 but does
not exceed Rs.1,800,000
Rs.77,500 +
12.5% of the
amount
exceeding
Rs.13,00,000
6. Where the taxable
income exceeds
Rs.1,800,000 but does
not exceed Rs.2,200,000
Rs.140,000 +
15% of the
amount
exceeding
Rs.1,800,000 39
7. Where the taxable
income exceeds
Rs.2,200,000 but does
not exceed Rs.2,600,000
Rs.200,000 +
17.5% of the
amount
exceeding
Rs.2,200,000
8. Where the taxable
income exceeds
Rs.2,600,000 but does
not exceed
Rs.3,000,000
Rs.270,000 +
20% of the
amount
exceeding Rs.
2,600,000
9. Where the taxable
income exceeds
Rs.3,000,000 but does
not exceed
Rs.3,500,000
Rs.350,000 +
22.5% of the
amount
exceeding
Rs. 3,000,000
10. Where the taxable
income exceeds
Rs.35,00,000 but does
not exceed Rs.4,000,000
Rs. 462,500 +
25% of the
amount
exceeding
Rs.3,500,000
11. Where the taxable
income exceeds
Rs.587,500 +
27.5% of the 40
Rs.40,00,000 but does
not exceed Rs.7,000,000
amount
exceeding
Rs.4,000,000
12. Where the taxable
income exceeds
Rs.7,000,000
Rs.1,412,500
+ 30% of the
amount
exceeding
Rs.7,000,000”;
(b) the first proviso shall be omitted;
(B) Division IA shall be omitted;
(C) in Division II, in clause (i), for full stop at the end a colon
shall be substituted and thereafter the following proviso shall
be added, namely:-
“Provided that the rate of tax imposed on the taxable
income of a company other than a banking company, shall
be 34% for the tax year 2014.”;
(D) in Division VI,-
(i) in paragraph (a), in the table, in the first column,-
(a) against S.No (4), for the entry in the second
column the words, letters, figures and full stops
“Where the gross amount of rent exceeds
Rs.1,000,000 but does not exceed
Rs.2,000,000.”, shall be substituted; and41
(b) after S.No (4), amended as aforesaid, the
following new serial numbers and entries
relating thereto in the second and third
columns shall be added, namely:-
“(5) Where the gross
amount of rent
exceeds
Rs.2,000,000 but
does not exceed
Rs.3,000,000.
Rs.157, 500 plus
12.5 per cent of
the gross amount
of rent exceeding
Rs.2, 000,000.
(6) Where the gross
amount of rent
exceeds
Rs.3,000,000 but
does not exceed
Rs.4,000,000.
Rs.282, 500 plus
15 per cent of the
gross amount of
rent exceeding
Rs.3, 000,000.
(7) Where the gross
amount of rent
exceeds
Rs.4,000,000.
Rs.432, 500 plus
17.5 per cent of
the gross amount
of rent exceeding
Rs.4, 000,000.”;
(ii) in paragraph (b), in the table, in the first column,-42
(a) against S.No. (3), for the entry in the second
column (2), the words, letters, figures and full
stops “Where the gross amount of rent
exceeds Rs.1,000,000 but does not exceed
Rs.2,000,000." shall be substituted; and
(b) after S.No (3), amended as aforesaid, the
following new serial numbers and the entries
relating thereto in the second and third
columns shall be added, namely:-
“(4) Where the gross
amount of rent
exceeds
Rs.2,000,000 but
does not exceed
Rs.3, 000,000.
Rs.165,000 plus
12.5 per cent of the
gross amount of
rent exceeding
Rs.2, 000,000.
(5) Where the gross
amount of rent
exceeds
Rs.3,000,000 but
does not exceed
Rs.4, 000,000.
Rs.290,000 plus 15
per cent of the
gross amount of
rent exceeding
Rs.3,000,000.43
6) Where the gross
amount of rent
exceeds
Rs.4,000,000.
Rs.440,000 plus
17.5 per cent of the
gross amount of
rent exceeding
Rs.4,000,000.”;
(II) in Part II, for the figure, words and full stop “5% of the value of goods.” the
following shall be substituted, namely:-
“,-
(a) 5% of the value of goods in the case of industrial
undertakings;
(b) 5% in all other cases of companies; and
(c) 5.5% in case of all taxpayers other than those covered at (a)
and (b) above.”;
(III) in Part III,-
(a) in Division III,-
(i) in paragraph (1), for sub-paragraph (b) the following shall be
substituted, namely:-
“(b) in the case of sale of goods,-
(i) 3.5% of the gross amount payable in the case
of companies; and
(ii) 4% of the gross amount payable in the case of
other taxpayers.”;44
(ii) in paragraph (2), for sub-paragraph (ii) the following shall be
substituted, namely:-
“(ii) in the case of rendering of or providing of services,-
(a) 6% of the gross amount payable in the case of
companies; and
(b) 7% of the gross amount payable in the case of
other taxpayers.”;
(iii) in paragraph (3), for the figure, words and full stop “6% of
the gross amount payable.” the following shall be
substituted, namely,-
“,-
(i) “6% of the gross amount payable in the case of
companies; and
(ii) 6.5% of the gross amount payable in the case of other
taxpayers.”;
(b) in Division V,-
(i) in paragraph (a), in the table, in first column,-
a. against S.No. (4), for the entry in second column the
following shall be substituted, namely:-
“Where the gross amount of rent exceeds
Rs.1,000,000 but does not exceed
Rs.2,000,000."; and45
b. after S.No. (4), amended as aforesaid, the following
new serial numbers and entries relating thereto in the
second and third columns shall be added, namely:-
“(5) Where the gross
amount of rent
exceeds
Rs.2,000,000 but
does not exceed
Rs.3,000,000.
Rs.157, 500 plus 12.5
per cent of the gross
amount of rent
exceeding
Rs.2,000,000.
(6) Where the gross
amount of rent
exceeds
Rs.3,000,000 but
does not exceed
Rs.4,000,000.
Rs.282, 500 plus 15
per cent of the gross
amount of rent
exceeding
Rs.3,000,000.
(7) Where the gross
amount of rent
exceeds
Rs.4,000,000.
Rs.432, 500 plus 17.5
per cent of the gross
amount of rent
exceeding
Rs.4,000,000.”;
(ii) in para (b),-46
a. against S.No. (3), for the entry in second column the
following shall be substituted, namely:-
“Where the gross amount of rent exceeds
Rs.1,000,000 but does not exceed
Rs.2,000,000.";
b. after S.No. (3), amended as aforesaid, the following
new serial numbers and entries relating thereto in the
second and third columns shall be added, namely:-
“(4) Where the gross
amount of rent
exceeds
Rs.2,000,000 but
does not exceed
Rs.3,000,000.
Rs.165, 000 plus
12.5 per cent of the
gross amount of
rent exceeding
Rs.2,000,000.
(5) Where the gross
amount of rent
exceeds
Rs.3,000,000 but
does not exceed
Rs.4,000,000.
Rs.290, 000 plus
15 per cent of the
gross amount of
rent exceeding
Rs.3,000,000.
(6) Where the gross
amount of rent
Rs.440, 000 plus
17.5 per cent of the 47
exceeds
Rs.4,000,000.
gross amount of
rent exceeding
Rs.4,000,000.”; and
c. in Division VI, in paragraph (1), for the figure “10” the
figure “15” shall be substituted;
(IV) in Part IV,-
(a) in Division IIA, in the table, S. No. (iv) and the entries relating
thereto in the second and third columns shall be omitted;
(b) after Division IIA, amended as aforesaid, the following new Division
shall be inserted namely:-
“Division IIB
Rates for collection of tax by NCCPL
The rate of deduction under section 233AA shall be 10% of profit or
mark-up or interest earned by the member, margin financier or
securities lender.”;
(c) in Division III, after paragraph (3), the following new paragraph shall
be added, namely:-
“(4) where the motor vehicle tax is collected in lump sum,-
(a) Upto 1000cc Rs. 7,500
(b) 1001cc to 1199cc Rs. 12,500
(c) 1200cc to 1299cc Rs. 17,500
(d) 1300cc to 1599cc Rs. 30,000 48
(e) 1600cc to 1999cc Rs. 40,000
(f) 2000cc and above Rs. 80,000”;
(d) in Division VI, for the figure “0.2” the figure “0.3” shall be
substituted;
(e) for Division VII the following shall be substituted, namely:-
“DIVISION VII
PURCHASE OF MOTOR CARS AND JEEPS
The rate of payment of tax under section 231B shall be
as follows:–
Engine capacity Amount of tax
upto 850cc Rs.10,000
851cc to 1000cc Rs.20,000
1001cc to 1300cc Rs.30,000
1301cc to 1600cc Rs.50,000
1601cc to 1800cc Rs.75,000
1801cc to 2000cc Rs.100,000
Above 2000cc Rs.150,000”;
(f) in Division VIII, for the figure “5” the figure “10” shall be substituted;49
(g) after Division X, the following new Divisions shall be added,
namely:-
“DIVISION XI
Advance tax on functions and gatherings
The rate of tax to be collected under each sub-sections (1) and (2)
of section 236D shall be 10%.
DIVISION XII
Advance tax on foreign-produced films and TV plays
Rate of collection of tax under section 236E shall be as follows: -
(a) Foreign-produced film Rs. 1,000,000/-
(b) Foreign-produced TV drama
serial
Rs.100,000/-per
episode
(c) Foreign-produced TV play
(single episode)
Rs. 100,000
Division XIII
(1) The rate of tax to be collected under section 236F in
the case of Cable Television Operator shall be as
follows:-
License Category
as provided in
PEMRA Rules 2009
Tax on License
Fee
Tax on
Renewal
H Rs.7,500 Rs.10,000
H-1 Rs.10,000 Rs.15,00050
H-II Rs.25,000 Rs.30,000
R Rs.5,000 Rs.30,000
B Rs.5,000 Rs.40,000
B-1 Rs.30,000 Rs.50,000
B-2 Rs.40,000 Rs.60,000
B-3 Rs.50,000 Rs.75,000
B-4 Rs.75,000 Rs.100,000
B-5 Rs.87,500 Rs.150,000
B-6 Rs.175,000 Rs.200,000
B-7 Rs.262,500 Rs.300,000
B-8 Rs.437,500 Rs.500,000
B-9 Rs.700,000 Rs.800,000
B-10 Rs.875,500 Rs.900,000
(2) The rate of tax to be collected under section 236F in
the case of other Distribution Services shall be as
follows:-
Type of Channel
as provided in
PEMRA Rules 2009
Tax on
Issuance
of license
Tax
on Renewal
IPTV Rs.100,000 Rs.1,000,000
FM Radio Rs.100,000 Rs.100,000
MMDS Rs.200,000 Rs.100,000
Mobile TV Rs.100,000 Rs.50,000
Satellite TV station51
News or Current Rs.1,000,000 Rs.2,000,000
Sports Rs.1,000,000 Rs.1,000,000
Regional Language Rs.700,000 Rs.700,000
Health or Agro Rs.300,000 Rs.300,000
Education Rs.300,000 Rs.300,000
Entertainment Rs.1,000,000 Rs.1,000,000
Specialized subject
station Rs.500,000 Rs.200,000
Landing Rights per channel
News/Current
Affairs
Rs.1,000,000 Rs.5,000,000
Sports Rs.500,000 Rs.2,500,000
Educational Rs.200,000 Rs.1,000,000
Entertainment Rs.200,000 Rs.2,000,000
Children Rs.350,000 Rs.1,500,000;
Division XIV
Advance tax on sale to distributors, dealers or
wholesalers
The rate of collection of tax under section 236G shall
be 0.1% of the gross amount of sales.
Division XV
Advance tax on sale to retailers52
The rate of collection of tax under section 236H shall
be 0.5% of the gross amount of sales.
Division XVI
Collection of advance tax by educational
institutions
The rate of collection of tax under section 236I shall
be 5% of the amount of fee.
Division XVII
Advance tax on dealers, commission agents and
arhatis, etc.
The rate of collection of tax under section 236J shall
be as follows:-
Group Amount of tax
(per annum)
Group or Class A: Rs. 10,000
Group or Class B: Rs. 7,500
Group or Class C: Rs. 5,000
Any other category: Rs. 5,000.”;
(44) in the SECOND SCHEDULE,-
(a) in Part I,-
(i) in clause (53A), sub-clause (i) shall be omitted;
(ii) sub-clause (xxviii) shall be re-numbered as (xxviiia);
(iii) sub-clause (xxix) shall be re-numbered as (xxixa);53
(iv) clauses (92), (98A) and (103B) shall be omitted; and
(v) for clause (126E), the following shall be substituted, namely:-
“(126E) income derived by a zone enterprise as defined in
Special Economic Zones Act ,2012 (XX of 2012) for a period
of ten years starting from the date the developer certifies that
the zone enterprise has commenced commercial operation
and for a period of ten years to a developer of zone starting
from the date of signing of the development agreement in
the special economic zone as announced by the Federal
Government.”;
(b) in Part II, after clause (27), the following new clause shall be
inserted, namely,-
“(28) The rate of tax under section 148 on import of hybrid cars
shall be reduced as below:-
Engine capacity Rate of reduction
Up to 1200 cc 100%
1201 to 1800 cc 50%
1801 to 2500 cc 25 %”;
(c) in Part III,-
(i) clauses (1) and (2) shall be omitted;
(ii) in clause (7), for the word “company” the word “taxpayer”
shall be substituted;54
(d) in Part IV,-
(i) after clause (56) the following new clause (56A) shall be
added, namely:-
“(56A) The provisions of sub-section (7) of section
148 and clause (a) of sub-section (1) of section 169
shall not apply to a person who is liable to withholding
tax under section 236E.”;
(ii) in clause (59), in sub-clause (iv),paragraph (a) shall be
omitted;
(iii) after clause (72) the following new clauses shall be added,
namely:-
“(72A) The provisions of clause (l) of section 21,
sections 113 and 152 shall not apply in case of a Hajj
Group Operator in respect of Hajj operations provided
that the tax has been paid at the rate of Rs.3,500 per
Hajji for the tax year 2013 and Rs.5,000 per Hajji for
the tax year 2014 in respect of income from Hajj
operations.
(72B) the provisions of section 148 shall not apply to
an industrial undertaking if the tax liability for the
current tax year, on the basis of determined tax
liability for any of the preceding two tax years,
whichever is the higher, has been paid and a 55
certificate to this effect is issued by the concerned
Commissioner.”
(45) in the THIRD SCHEDULE, in PART II, in clause (1), for the figure “50” the
figure “25” shall be substituted; and
(46) in the SEVENTH SCHEDULE , in rule 6, in the second proviso, for the
words and figures “and at the rate of 35% for tax year 2014” shall be
omitted.
5. Amendments of the Federal Excise Act, 2005. ― In the Federal Excise Act,
2005, the following further amendments shall be made, namely:-
(1) in section 3, after sub-section (3), the following new sub-section shall be
inserted, namely:
“(3A) Subject to the provision of sub-section (3) of section 6 or any
notification issued thereunder, where excisable goods and services are
supplied to a person who has not obtained registration number, the
Federal Government may, by notification in the official
Gazette, charge, levy and collect, on the excisable goods and services
specified in that notification, a further duty at the rate of two per cent of the
value in addition to the rate specified in sub-sections (1), (3), (4) and (5) of
this section.”;
(2) in section 17, in sub-section (1), after clause (d) the following new clause
shall be inserted, namely:-
“(da) record relating to gate passes, inward or outward, and transport
receipts;”;56
(3) in section 33, after sub-section (1), the following new sub-section shall be
inserted, namely:–
“(1A) Where in a particular case, the Commissioner (Appeals) is of
the opinion that the recovery of tax levied under this Act, shall cause
undue hardship to the taxpayer, he, after affording opportunity of being
heard to the Commissioner or officer of Inland Revenue against whose
order appeal has been made, may stay the recovery of such tax for a
period not exceeding thirty days in aggregate.”;
(4) in section 35, after sub-section (3), the following explanation shall be
added, namely:–
“Explanation.- For the purpose of sections 35, 45 and 46 and for
removal of doubt, it is declared that the powers of the Board,
Commissioner or officer of Inland Revenue under these sections are
independent of the powers of the Board under section 42B and nothing
contained in section 42B restricts the powers of the Board, Commissioner
or officer of Inland Revenue under these sections or to conduct audit
under these sections.”;
(5) after section 42B the following new section shall be inserted, namely:-
“42C. Reward to Inland Revenue officers and officials.- (1) In
cases involving concealment or evasion of excise duty and other
taxes, cash reward shall be sanctioned to the officers and officials
of Inland Revenue for their meritorious conduct in such cases and
to the informer providing credible information leading to such 57
detection, as may be prescribed by the Board, only after realization
of part or whole of the taxes involved in such cases.
(2) The Board may, by notification in the official Gazette,
prescribe the procedure in this behalf and specify the
apportionment of reward sanctioned under this section for individual
performance or to collective welfare of the officers and officials of
Inland Revenue.”;
(6) In section 45, in sub-section (2), after the word “Board”, the words “or
Chief Commissioner” shall be inserted;
(7) after section 45, the following new section shall be inserted, namely:–
“45A. Monitoring or tracking by electronic or other means.―
(1) Subject to such conditions, restrictions and procedures as it may deem
fit to impose or specify, the Board may, by notification in the official
Gazette, specify any registered person or class of registered persons or
any goods or class of goods in respect of which monitoring or tracking of
production, sales, clearances, stocks or any other related activity may be
implemented through electronic or other means as may be prescribed.
(2) From such date, as may be prescribed by the Board, no
excisable goods shall be removed or sold by the manufacturer or any
other person without affixing tax stamp, banderole, stickers, labels, etc. in
any such form, style and manner as may be prescribed by the Board in
this behalf.”;
(8) in the First Schedule,–58
(a) in Table I, in column (1),–
(i) against serial numbers 4, 5 and 6, in column (4), for the word
“six”, the word “nine” shall be substituted;
(ii) for serial numbers 9 and 10 and the entries relating thereto
in columns (2), (3) and (4), the following shall be substituted,
namely:–
“9. Locally produced
cigarettes if their onpack printed retail
price exceeds rupees
two thousand two
hundred and eighty six
per thousand
cigarettes
24.02 Rupees two
thousand three
hundred and
twenty five per
thousand
cigarettes
10. Locally produced
cigarettes if their onpack printed retail
price does not exceed
rupees two thousand
two hundred and
eighty six per
thousand cigarettes
24.02 Rupees eight
hundred and
eighty per
thousand
cigarettes”;59
(iii) serial number 11 and the entries relating thereto in columns
(2), (3) and (4) shall be omitted; and
(iv) after serial number 53 and the entries relating thereto in
columns (2), (3) and (4), the following new serial numbers
and the entries relating thereto shall be added, namely:–
“54. Oilseeds Respective
headings
Forty
paisa per
kg
55. Motor cars, SUVs and
other motor vehicles of
cylinder capacity of 1800
cc or above, principally
designed for the
transport of persons
(other than those of
headings 87.02),
including station wagons
and racing cars of
cylinder capacity of 1800
cc or above.
87.03 Ten per
cent
ad.val.”;
and
(b) in Table II, in column (1),–
(i) serial number 7 and the entries relating thereto in columns
(2), (3) and (4) shall be omitted; and60
(ii) for serial number 8 and the entries relating thereto in
columns (2), (3) and (4) the following shall be substituted,
namely:–
“8. Services provided or rendered
by banking companies,
insurance companies,
cooperative financing societies,
modarabas, musharikas, leasing
companies, foreign exchange
dealers, non-banking financial
institutions, Assets Management
Companies and other persons
dealing in any such services.
98.13 Sixteen
per cent
of the
charges.”;
(9) in the Third Schedule,–
(a) in Table I, in column (1), serial numbers 5, 7 and 8 and the entries
relating thereto in columns (2) and (3) shall be omitted; and
(b) in Table-II, in column (1), serial number 8 and the entries relating
thereto in columns (2) and (3) shall be omitted.
6. Income Support Levy Act 2013.― There is hereby imposed an Income Support
Levy for the purposes herein after appearing;
AN
ACT
to provide for charge and collection of Income Support Levy61
WHEREAS it is desirable to provide financial assistance and other social
protection and safety net measures to economically distressed persons and families;
AND WHEREAS under the principles of policy as given in the Constitution of the
Islamic Republic of Pakistan, the State is obliged to promote social and economic wellbeing of the people and to provide basic necessities of life;
AND WHEREAS it is expedient to provide for financial resources for running an
income support fund for the economically distressed persons and their families through
a Levy to be called Income Support Levy;
It is hereby enacted as follows:-
1. Short title, extent and commencement.- (1) This Act may be
called the Income Support Levy Act, 2013.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions.- (1) In this Act, unless the context otherwise requires –
(a) “Levy” means the Income Support Levy leviable or payable under
this Act;
(b) “net moveable wealth” means the amount by which the aggregate
value of the moveable assets belonging to a person as declared in
the wealth statement for the relevant tax year, is in excess of the
aggregate value of all the liabilities owed by that person on the
closing date of the tax year.
Explanation.- For the purpose of this clause,-62
(i) where liability claimed relates wholly and exclusively to an
immovable asset, it shall not be claimed and allowed while
computing the net moveable wealth. However, where the
liability claimed relates wholly and exclusively to a moveable
asset, it shall be claimed and allowed as a straight deduction
while computing net moveable wealth; and
(ii) where the gross wealth of a person, declared in the wealth
statement includes both moveable and immoveable assets
and the nature of assets to which the liability relates is not
determinable, the liability to be allowed while determining the
net moveable wealth shall be calculated by the following
formula:-
(A / B) x C
Where –
A is the gross value of moveable assets;
B is the gross value of both moveable and
immoveable assts; and
C is the gross value of debts owed;
(c) “Officer of Inland Revenue” means the Officer of Inland Revenue as
defined under clause (38A) of section 2 of the Ordinance;
(d) “Ordinance” means the Income Tax Ordinance, 2001 (XLIX of
2001);
(e) “person” means an individual;63
(f) “prescribed” means prescribed by the rules made under this Act;
(g) “tax year” means the tax year as defined in clause (68) of section 2
of the Ordinance; and
(h) “wealth statement” means a wealth statement required to be filed
under section 116 of the Income Tax Ordinance, 2001.
(2) All other words and impressions used, but not defined herein, shall have
the same meaning as is assigned to them under the Ordinance.
3. Charge of Levy.- Subject to the provisions contained in this Act, there
shall be charged for every tax year commencing on and from tax year
2013 a Levy, in respect of value of net moveable assets held by a person
on the last date of the tax year at the rate specified in section 9 and in the
manner specified hereunder.
4. Time and manner of payment of Levy.- A person who is liable to
pay the Levy under this Act shall pay the Levy along with wealth
statement.
5. Assessment of Levy.- The Officer of Inland Revenue shall, by an
order in writing, determine the Levy payable, and shall serve upon the
person a notice of demand specifying the sum payable and the time within
which it shall be paid and thereupon such sum shall be paid to such
account and in such manner as may be prescribed, within the time
specified in the notice.
6. Default surcharge.- Without prejudice to any liability under any
other law for the time being in force, where a person fails to pay Levy as 64
provided under section 4 or the levy so paid is less than the amount
payable, he shall be liable to pay default surcharge at the rate of sixteen
per cent per annum on the amount not paid or the amount by which the
Levy paid falls short of the amount payable, calculated from the date it
was payable to the date it is paid or the date of an order under section 5,
whichever is earlier.
7. Recovery of Levy.-The provisions of the Ordinance shall, so far as may
be practicable, apply to the collection of Levy under this Act as they apply
to the collection of tax under the Ordinance.
8. Appeals, revisions and rectifications.- The provisions of the
Ordinance shall, so far as may be practicable, apply to an appeal against,
or revision or rectification of, an order under this Act as they apply to an
appeal, revision or rectification under the Ordinance.
9. Rate of Levy.- The rate of levy payable under this Act shall be 0.5%
of the net moveable wealth exceeding one million rupees.
10. Power to make rules.- The Federal Board of Revenue may, by
notification in the official Gazette, make rules for carrying out the purposes
of this Act.65
DECLARATION UNDER THE PROVISONAL COLLECTION OF TAXES
ACT, 1931 (XVI OF 1931)
The provisions of sub-clause (10) of clause 2, sub-clause (2), sub-clause
(3), sub-clause (7), sub-clause (13) and sub-clause (14) of clause 3 and sub-clause (6),
sub-clause (8)(a)(ii), sub-clause (8)(a)(iii), sub-clause (8)(a)(iv), sub-clause (8)(b) and
sub-clause (9) of clause 5 of this Bill shall have effect, for the purpose of this declaration
and for the purposes of the provisions of the Provisional Collection of Taxes Act, 1931
(XVI of 1931), as if they were provisions for imposition of sales tax or duties of federal
excise or duties of customs. It is hereby declared accordingly in terms of section 3 of the
said Act that it is expedient in the public interest that the aforesaid provisions shall have
effect on the 13th June, 2013.
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, 2013. Various provisions have been explained in the
Notes on Clauses.
(MUHAMMAD ISHAQ DAR)
Minister for Finance and Revenue
1 A
BILL
to give effect to the financial proposals of the Federal Government for the yearbeginning on the first day of July, 2013, and to amend and enact certain laws
WHEREAS it is expedient to make provisions to give effect to the financial
proposals of the Federal Government for the year beginning on the first day of July,
2013, and to amend certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:-
1. Short title, extent and commencement. – (1) This Act may be called the
Finance Act, 2013.
(2) It extends to the whole of Pakistan.
(3) It shall, unless otherwise provided, come into force on the first day of July,
2013.
2. Amendments of Act IV of 1969.― In the Customs Act, 1969 (IV of 1969), the
following further amendments shall be made, namely:-
(1) in section 2, in clause (la), after the figure “104” the comma and figure “,
121” shall be inserted;
(2) after section 3DD, the following new section shall be inserted, namely:-
“3DDD. Directorate General of Input Output Co-efficient
Organization.- The Director General of Input Output Co-Efficient
Organization (IOCO) shall consist of a Director General and as many
Directors, Additional Directors, Deputy Directors, Assistant Directors and 2
such other officers as the Board may, by notification in the official Gazette,
appoint.”;
(3) for section 14A, the following shall be substituted; namely:-
“14A. Provision of security and accommodation at Customs-ports,
etc.- (1) Any agency or person including port authorities managing or
owning a customs-port, a customs-airport or a land customs station or a
container freight station shall provide at its or his own cost adequate
security and accommodation to customs staff for residential purposes,
offices, examination of goods, detention and storage of goods and for
other departmental requirements to be determined by the Collector of
Customs and shall pay utility bills, rent and taxes in respect of such
accommodation.
(2) Any agency or person including but not limited to port
authorities managing or owning a customs port, a customs airport or a
land customs station or a container freight station shall entertain delay
and detention certificate issued by an officer not below the rank of
Assistant Collector of Customs and also refund demurrage charges which
the agency or person has received on account of delay because of no
fault of importers or exporters.”;
(4) in section 32, in sub-section (4), after the brackets and figure “(3)”, the
words, figure and brackets “or sub-section (3A)” shall be inserted;
(5) in section 81,3
(a) in sub-sections (1), (2), (3), (4) and (5), the words “or a post-dated
cheque”, wherever occurring, shall be omitted;
(b) in the Explanation, for the words “post-dated cheque” the words
“pay order” shall be substituted;
(6) in section 83, in sub-section (2), the comma and figure “,80A” shall be
omitted;
(7) in section 179, in sub-section (1), after clause (vi), the following proviso
shall be added, namely:-
“Provided that in cases of goods to be exported, the above officers
of Customs shall have their jurisdiction and powers in terms of FOB value
and twice their respective monetary limit.”;
(8) in section 196, in sub-section (1), after the word “Investigation” a comma
and the words “, or Director of Valuation” shall be inserted;
(9) in section 202B, for the words “Pakistan Customs Service”, wherever
occurring, the words “Customs Service of Pakistan, as defined under the
Occupational Groups and Services (Probation, Training and Seniority)
Rules, 1990,” shall be substituted; and
(10) the amendments set out in the Schedule to this Act shall be made in the
First Schedule to the Customs Act, 1969 (IV of 1969).
3. Amendments of the Sales Tax Act, 1990. ― In the Sales Tax Act, 1990, the
following further amendments shall be made, namely:-
(1) in section 2,–4
(i) after clause (5AB), the following new clause shall be inserted,
namely:-
“(5AC)“CREST” means the computerized program for analyzing
and cross-matching of sales tax returns, also referred to as
Computerized Risk-based Evaluation of Sales Tax;”;
(ii) for clause (22A), the following shall be substituted namely:-
“(22A) “Provincial Sales Tax” means tax levied under provincial
laws or laws relating to Islamabad Capital Territory, which
are declared by the Federal Government through notification
in the official Gazette, to be provincial sales tax for the
purpose of input tax;”;
(iii) after clause (33), the following new clause shall be inserted,
namely:-
“(33A) “supply chain” means the series of transactions between
buyers and sellers from the stage of first purchase or import
to the stage of final supply;”;
(iv) in clause (44),-
(a) in sub-clause (a), after the words "recipient of the supply",
the words "or the time when any payment is received by the
supplier in respect of that supply, whichever is earlier” shall
be inserted; and
(b) in sub-clause (c), for the “semicolon” a “colon” shall be
substituted and thereafter the following proviso shall be
added, namely:-5
“Provided that in respect of sub-clause (a), (b) or (c),
where any part payment is received,―
(i) for the supply in a tax period, it shall be accounted for
in the return for that tax period; and
(ii) in respect of exempt supply, it shall be accounted for
in the return for the tax period during which the
exemption is withdrawn from such supply;”;
(2) in section 3,―
(a) for the word “sixteen”, wherever occurring, the word “seventeen”
shall be substituted;
(b) after sub-section (1), the following new sub-sections shall be
inserted, namely:–
“(1A) Subject to the provision of sub-section (6) of section 8 or any
notification issued thereunder, where taxable supplies are made to a
person who has not obtained registration number, there shall be charged,
levied and paid a further tax at the rate of two per cent of the value in
addition to the rate specified in sub-sections (1), (1B), (2), (5) and (6) of
this section:
Provided that the Federal Government may, by notification in the
official Gazette, specify the taxable supplies in respect of which the further
tax shall not be charged, levied and paid.6
(1B) The Board may, by notification in the official Gazette, in lieu
of levying and collecting tax under sub-section (1) on taxable supplies,
levy and collect tax---
(a) on the production capacity of plants, machinery, undertaking,
establishments or installations producing or manufacturing
such goods; or
(b) on fixed basis, as it may deem fit, from any person who is in
a position to collect such tax due to the nature of the
business.”; and
(c) in sub-section (5), for the words “such extra amount of tax” the
words “tax at such extra rate or amount” shall be substituted”;
(3) in section 8, in sub-section (1), after clause (ca), the following new clause
shall be inserted, namely:-
“(caa) purchases, in respect of which a discrepancy is indicated by
CREST or input tax of which is not verifiable in the supply chain;”;
(4) in section 21,-
(a) in sub-section (3), the words and figure “unless the registered buyer
has fulfilled his responsibilities under section 73” shall be omitted;
(b) after sub-section (3), the following new sub-section shall be added,
namely:–
“(4) Notwithstanding anything contained in this Act, where the
Board, the Commissioner or any officer authorized by the
Board in this behalf has reasons to believe that a registered 7
person is engaged in issuing fake or flying invoices, claiming
fraudulent input tax or refunds, does not physically exist or
conduct actual business, or is committing any other
fraudulent activity, the Board, Commissioner or such officer
may after recording reasons in writing, block the refunds or
input tax adjustments of such person and direct the
concerned Commissioner having jurisdiction for further
investigation and appropriate legal action.”;
(5) in section 22, in sub-section (1),―
(a) in clause (e), the word “and”, at the end, shall be omitted; and
(b) after clause (e), amended as aforesaid, the following new clause
shall be inserted, namely:–
“(ea) record relating to gate passes, inward or outward, and
transport receipts.”;
(6) in section 25, after sub-section (5), the following explanation shall be
added, namely:–
“Explanation.- For the purpose of sections 25, 38, 38A, 38B and
45A and for removal of doubt, it is declared that the powers of the Board,
Commissioner or officer of Inland Revenue under these sections are
independent of the powers of the Board under section 72B and nothing
contained in section 72B restricts the powers of the Board, Commissioner
or officer of Inland Revenue to have access to premises, stocks, accounts, 8
records, etc. under these sections or to conduct audit under these
sections.”;
(7) in section 40B, after the word “Board” the words “or Chief Commissioner”
shall be inserted.
(8) after section 40B, the following new section shall be inserted, namely:–
“40C. Monitoring or tracking by electronic or other means.―
(1) Subject to such conditions, restrictions and procedures, as it may
deem fit to impose or specify, the Board may, by notification in the official
Gazette, specify any registered person or class of registered persons or
any good or class of goods in respect of which monitoring or tracking of
production, sales, clearances, stocks or any other related activity may be
implemented through electronic or other means as may be prescribed.
(2) From such date as may be prescribed by the Board, no
taxable goods shall be removed or sold by the manufacturer or any other
person without affixing tax stamp, banderole, stickers, labels, etc. in any
such form, style and manner as may be prescribed by the Board in this
behalf.”;
(9) in section 45B, in sub-section (1), the following new sub-section shall be
inserted, namely:–
“(1A) Where in a particular case, the Commissioner (Appeals) is of
the opinion that the recovery of tax levied under this Act, shall cause
undue hardship to the taxpayer, he, after affording opportunity of being
heard to the Commissioner or officer of Inland Revenue against whose 9
order appeal has been made, may stay the recovery of such tax for a
period not exceeding thirty days in aggregate.”;
(10) for section 57 the following shall be substituted, namely:–
“57. Rectification of mistake.― (1) The Commissioner, the
Commissioner (Appeals) or the Appellate Tribunal may, by an order in
writing, amend any order passed by him to rectify any mistake apparent
from the record on his or its own motion or any mistake brought to his or
its notice by a taxpayer or, in the case of the Commissioner (Appeals) or
the Appellate Tribunal, the Commissioner.
(2) No order under sub-section (1) which has the effect of
increasing an assessment, reducing a refund or otherwise applying
adversely to the taxpayer shall be made unless the taxpayer has been
given a reasonable opportunity of being heard.
(3) Where a mistake apparent on the record is brought to the
notice of the Commissioner or Commissioner (Appeals), as the case may
be, and no order has been made under sub-section (1), before the
expiration of the financial year next following the date on which the
mistake was brought to their notice, the mistake shall be treated as
rectified and all the provisions of this Act shall have effect accordingly.
(4) No order under sub-section (1) shall be made after five years
from the date of the order sought to be rectified.";
(11) after section 72B, the following new section shall be inserted, namely:-10
“72C.- Reward to Inland Revenue officers and officials.- (1) In
cases involving concealment or evasion of sales tax and other
taxes, cash reward shall be sanctioned to the officers and officials
of Inland Revenue for their meritorious conduct in such cases and
to the informer providing credible information leading to such
detection, as may be prescribed by the Board, only after realization
of part or whole of the taxes involved in such cases.
(2) The Board may, by notification in the official Gazette,
prescribe the procedure in this behalf and specify the
apportionment of reward sanctioned under this section for individual
performance or to collective welfare of the officers and officials of
Inland Revenue.”;
(12) in section 73, in the explanation, after the words “is registered” the words,
letters and figure “through Form STR 1 or change of particulars in
registration database” shall be inserted;
(13) in the Third Schedule, in column (1), after serial number 21 and the entries
relating thereto in columns (2) and (3), the following new serial numbers
and the entries relating thereto shall be added, namely:–
“22. Finished or made-up articles of textile and
leather, including garments, footwear, and
bed ware, sold in retail packing
Respective
headings.
23. Household electrical goods, including air
conditioners, refrigerators, deep freezers,
Respective
headings.11
televisions, recorders and players, electric
bulbs, tube-lights, fans, electric irons,
washing machines and telephone sets
24. Household gas appliances, including
cooking range, ovens, geysers and gas
heaters
Respective
headings.
25. Foam or spring mattresses, and other foam
products for household use
Respective
headings.
26. Auto parts and accessories sold in retail
packing
Respective
headings.
27. Lubricating oils, brake fluid, transmission
fluid, and other vehicular fluids and
maintenance products in retail packing
Respective
headings.
28. Tyres and tubes Respective
headings.
29. Storage batteries Respective
headings.
30. Arms and ammunition Respective
headings.
31. Paints, distempers, enamels, pigments,
colours, varnishes, gums, resins, dyes,
glazes, thinners, blacks, cellulose lacquers
and polishes sold in retail packing
Respective
headings.12
32. Fertilizers Respective
headings.
33. Cement sold in retail packing Respective
headings.
34. Tiles sold in retail packing Respective
headings.
35. Biscuits, confectionary, chocolates, toffees
and candies
Respective
headings.
36. Other goods and products sold in retail
packing
Respective
headings.”;
and
(14) in the Sixth Schedule,―
(a) in Table-1, serial number 25 in column (1) and the entries relating
thereto in columns (2) and (3) shall be omitted; and
(b) in Table-2, serial number 12 in column (1) and the entries relating
thereto in columns (2) and (3) shall be omitted.
4. Amendment of Ordinance XLIX of 2001.─ In the Income Tax Ordinance, 2001
(XLIX of 2001), the following further amendments shall be made, namely:-
(1) in section 8,in clause (e), in sub-clause (ii), for the colon a full stop shall be
substituted and thereafter the proviso shall be omitted;
(2) in section 56, in sub-section (1), after the word “income”, occurring for the
third time, the words and figure “except income under the head salary”
shall be inserted;13
(3) in section 59AA, in sub-section (5), after the word “requirements”, the
words “ and group designation rules or regulations” shall be inserted;
(4) in section 59B, in sub-section (2), in clause (g), after the word
“requirements”, the words “and group designation rules or regulations”
shall be inserted;
(5) in section 80, in sub-section (2), in clause (b),-
(a) for sub-clause (v), the following shall be substituted, namely,-
“(v) a co-operative society, a finance society or any other
society;”;
(b) after sub-clause (v), substituted as aforesaid, the following new
sub-clauses shall be inserted, namely:-
“(va) a non-profit organization;
(vb) a trust, an entity or a body of persons established or
constituted by or under any law for the time being in force;”;
(6) in section 111, in sub-section (1), for full stop, at the end, a colon shall be
substituted and thereafter the following proviso shall be added, namely:-
“Provided that where a taxpayer explains the nature and source of
the amount credited or the investment made, money or valuable article
owned or funds from which the expenditure was made, by way of
agricultural income, such explanation shall be accepted to the extent of
agricultural income worked back on the basis of agricultural income tax
paid under the relevant provincial law.”;
(7) in section 113,-14
(a) in sub-section (1), in clause (e), for the word “one-half” the word
“one” shall be substituted; and
(b) in sub-section (2),-
(i) in clause (b), for the word “one-half” the word “one” shall be
substituted; and
(ii) in clause (c), after the comma, occurring for the first time,
the words, figures and brackets “clause (1) of Division I, or”
shall be inserted;
(8) for section 113A, the following shall be substituted, namely:-
“113A. Minimum tax on builders.- (1) Subject to this Ordinance,
where a person derives income from the business of construction and sale
of residential, commercial or other buildings, he shall pay minimum tax at
the rate of rupees twenty five per square foot as per the construction or
site plan approved by the relevant regulatory authority.
(2) The minimum tax to be paid under this section shall be computed
on the basis of total number of square feet sold or booked for sale during
the year.
(3) The tax paid under this section shall be minimum tax on the income
of the builder from the sale of such residential, commercial or other
building.”;
(9) for section 113B the following shall be substituted, namely,-
“113B. Minimum tax on land developers.- (1) Subject to this
Ordinance, where a person derives income from the business of 15
development and sale of residential, commercial or other plots, he shall
pay minimum tax at the rate of rupees fifty per square yard as per the lay
out or site plan approved by the relevant regulatory authority.
(2) The tax computed under sub-section (1) shall be paid on the basis
of total number of square yards sold or booked for sale during the year.
(3) The tax paid under this section shall be minimum tax on the income
of the developer from the sale of such residential, commercial or other
plots sold or booked.”;
(10) in section 114,-
(A) in sub-section (1), in clause (b),-
(i) in sub-clause (viii),-
(a) for the words “one million” the words “five hundred
thousand ” shall be substituted; and
(b) for the full stop, occurring at the end, a semicolon
shall be substituted; and
(ii) after sub-clause (viii), amended as aforesaid, the following
new sub-clause shall be added, namely:-
“(ix) is registered with any Chamber of Commerce and
Industry or any trade or business association or any
market committee or any professional body including
Pakistan Engineering Council, Pakistan Medical and
Dental Council, Pakistan Bar Council or any
Provincial Bar Council, Institute of Chartered 16
Accountants of Pakistan or Institute of Cost and
Management Accountants of Pakistan.”;
(B) in sub-section (1A), for the words “three hundred and fifty
thousand” the words “four hundred thousand” shall be substituted;
(C) in sub-section (4), after the word “longer” the words “or shorter”
shall be inserted; and
(D) in sub-section (6), in clause (b), the word “and” shall be omitted and
thereafter a new clause shall be inserted, namely:-
“(ba) it is accompanied by approval of the Commissioner in
writing for revision of return; and”;
(11) in section 115,-
(a) sub-section (1) and the proviso thereunder shall be omitted;
(b) for sub-section (4), the following shall be substituted, namely:-
“(4) Any person who is not obliged to furnish a return for a tax
year because all the person’s income is subject to final
taxation under sections 5, 6, 7, 15, 148, 151 and 152, subsection (3) of section 153, sections 154, 156 and 156A, subsection (3) of section 233, sub-section (5) of section 234 or
sub-section (3) of section 234A shall furnish to the
Commissioner a statement showing such particulars relating
to the person’s income for the tax year in such form and
verified in such manner as may be prescribed.”;
(12) in section 116,-17
(a) in sub-section (1), after the word “person”, occurring for the first
time, the words “being an individual” shall be inserted;
(b) in sub-section (2),-
(i) the words and comma “whose last declared or assessed
income or the declared income for the year, is one million
rupees or more” shall be omitted; and
(ii) in the proviso, the words and commas “whose share from
the income of such association of persons, before tax, for
the year is one million rupees or more” shall be omitted;
(c) in sub-section (3), after the word “statement”, occurring for the third
time, the words and comma “along with the revised wealth
reconciliation and the reasons for filing revised wealth statement,”
shall be inserted; and
(d) in sub-section (4),-
(i) after the word “company”, the words “or an association of
persons” shall be inserted; and
(ii) the words and comma “and has paid tax amounting to thirtyfive thousand rupees or more for the tax year,” shall be
omitted;
(13) in section 118,-
(a) in sub-section (1), the words, figure and comma “an employer’s
certificate under section 115,” shall be omitted;18
(b) after sub-section (2) the following new sub-section shall be
inserted, namely,-
“(2A) Where salary income for the tax year is five hundred
thousand rupees or more, the taxpayer shall file return of income
electronically in the prescribed form and it shall be accompanied by
the proof of deduction or payment of tax and wealth statement as
required under section 116.”;
(c) in sub-section (3),-
(i) the words and comma “an Annual Statement of deduction of
income tax from salary, filed by the employer of an
individual” shall be omitted; and
(ii) for clause (a) the following shall be substituted, namely:-
“(a) in the case of a statement required under sub-section
(4) of section 115 or a return required to be filed
through e-portal in the case of a salaried individual,
on or before the 31st day of August next following the
end of the tax year to which the statement or return
relates; or”; and
(d) in sub section (6),-
(i) the words “or employer’s certificate” shall be omitted; and
(ii) the words “or certificate”, occurring twice, shall be omitted;
(14) in section 119,-
(a) in sub-section (1),-19
(i) clause (b) shall be omitted; and
(ii) the word and comma “certificate,”, occurring for the second
time, shall be omitted;
(b) in sub-section (2), the words and comma “employer’s certificate,”
shall be omitted; and
(c) in sub-section (3),-
(i) the words and comma “employer’s certificate,” shall be
omitted; and
(ii) the word and comma “certificate,”, occurring for the second
time, shall be omitted;
(15) section 120A shall be omitted;
(16) in section 122C and the provisos thereunder, for the word “sixty”,
wherever occurring, the word “forty-five” shall be substituted;
(17) in section 130, in sub-section (3),-
(a) in clause (a), the word “or”, occurring at the end, shall be omitted;
(b) in clause (b), for full stop a semicolon and the word “;or” shall be
substituted; and
(c) after clause (b), amended as aforesaid, the following new clause
shall be added, namely:-
“(c) is an officer of Inland Revenue Service and a law graduate
having at least fifteen years of service in BS-17 and above.”;
(18) in sub-section 149, in sub-section (1),-20
(a) for the word “employer” the words “person responsible for” shall be
substituted;
(b) after the word “adjustment” the words, figures and commas “of tax
withheld from employee under other heads and tax credit
admissible under sections 61, 62, 63 and 64 during the tax year
after obtaining documentary evidence, as may be necessary”, shall
be omitted; and
(c) clause (i) shall be omitted;
(19) in section 152, after sub-section (7), the following new sub-section shall be
added, namely,-
“(8) In this section “prescribed person” means a prescribed
person as defined in sub-section (7) of section 153.”;
(20) in section 153,-
(A) in sub-section (7),-
(a) in clause (i),-
(i) in sub-clause (h), the word “or”, occurring at the end,
shall be omitted;
(ii) in sub-clause (i), after the semi-colon the word “or”
shall be added; and
(iii) after sub-clause (i), amended as aforesaid, the
following new sub-clause shall be added, namely:-
“(j) a person registered under the Sales Tax
Act, 1990;”;21
(21) section 153A shall be omitted;
(22) in section 155, in sub-section (3),-
(a) in clause (v), after the word “organization” the words “or a
charitable institution” shall be inserted;
(b) in clause (vi), the word “or” shall be omitted; and
(c) after clause (vi), amended as aforesaid, the following new clauses
shall be inserted, namely:-
“(via) a private educational institution, a boutique, a beauty
parlour, a hospital, a clinic or a maternity home;
(vib) individuals or association of persons paying gross
rent of rupees one and a half million and above in a
year; or”;
(23) in section 164, in sub-section (2), the words and figure “and such
certificate shall be treated as sufficient evidence of the collection or
deduction for the purposes of section 168” shall be omitted;
(24) in section 165,-
(a) in sub-section (1), after the proviso, the following explanation shall
be added, namely:-
“Explanation.- For the removal of doubt, it is clarified that
this sub-section overrides all conflicting provisions contained in the
Protection of Economic Reforms Act, 1992 (XII of 1992), the
Banking Companies Ordinance, 1962 (LVII of 1962), the Foreign
Exchange Regulation Act, 1947 (VII of 1947) and the regulations22
made under the State Bank of Pakistan Act,1956 (XXXIII of 1956) ,
if any, on the subject, in so far as divulgence of information under
section 165 is concerned.”; and
(b) in sub-section (6), for the semicolon a full stop shall be substituted
and thereafter the proviso shall be omitted;
(25) after section 165, the following new section shall be added, namely:-
“165A. Furnishing of information by banks.- (1)
Notwithstanding anything contained in any law for the time being in force
including but not limited to the Banking Companies Ordinance, 1962 (LVII
of 1962), the Protection of Economic Reforms Act, 1992 (XII of 1992), the
Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations
made under the State Bank of Pakistan Act,1956 (XXXIII of 1956), if any,
on the subject, every banking company shall make arrangements to
provide to the Board in the prescribed form and manner,-
(a) online access to its central database containing
details of its account holders and all
transactions made in their accounts;
(b) a list containing particulars of deposits
aggregating rupees one million or more made
during the preceding calendar month;
(c) a list of payments made by any person against
bills raised in respect of a credit card issued to
that person, aggregating to rupees one 23
hundred thousand or more during the
preceding calendar month;
(d) a consolidated list of loans written off
exceeding rupees one million during a calendar
year; and
(e) a copy of each Currency Transactions Report
and Suspicious Transactions Report generated
and submitted by it to the Financial Monitoring
Unit under the Anti-Money Laundering Act,
2010 (VII of 2010).
(2) Each banking company shall also make
arrangements to nominate a senior officer at the head office to
coordinate with the Board for provision of any information and
documents in addition to those listed in sub-section (1), as may be
required by the Board.
(3) The banking companies and their officers shall not be
liable to any civil, criminal or disciplinary proceedings against them
for furnishing information required under this Ordinance.
(4) Subject to section 216, all information received under
this section shall be used only for tax purposes and kept
confidential.”;
(26) in section 169, in sub-section (3), the words “other than dividend received
by a company” shall be omitted.;24
(27) in section 171, in sub-section (2), after clause (c), the following
explanation shall be added, namely:-
“Explanation.- For the removal of doubt, it is clarified that where a
refund order is made on an application under sub-section (1) of section
170, for the purpose of compensation, the refund becomes due from the
date refund order is made and not from the date the assessment of
income treated to have been made by the Commissioner under section
120.”;
(28) in section 172, in sub-section (3), in clause (b), for the semicolon, a colon
shall be substituted and thereafter the following explanation shall be
added, namely:-
“Explanation.- In this clause the expression “business connection”
includes transfer of an asset or business in Pakistan by a non-resident;”;
(29) in section 177, after sub-section (10), the following explanation shall be
added, namely:-
“Explanation.- For the removal of doubt, it is declared that the
powers of the Commissioner under this section are independent of the
powers of the Board under section 214C and nothing contained in section
214C restricts the powers of the Commissioner to call for the record or
documents including books of accounts of a taxpayer for audit and to
conduct audit under this section.”;
(30) in section 178, the words and commas “Federal Excise, Sales Tax,” shall
be omitted;25
(31) in section 181, in sub-section (3), for the full stop at the end a colon shall
be substituted and thereafter a proviso shall be added, namely:-
“Provided that the Board may in case of individuals allow, in place
of National Tax Number use of Computerized National Identity Card
issued by the National Database and Registration Authority,.”;
(32) after section 181B, the following new section shall be added, namely:-
“181C. Displaying of National Tax Number.- Every person
deriving income from business chargeable to tax, who has been issued a
National Tax Number, shall display his National Tax Number at a
conspicuous place at every place of his business.”;
(33) in section 182, in sub-section (1), in the Table, in column (1),-
(a) against S.No.1,-
(i) in column (2), for the words and figures “Where any person
fails to furnish a return of income or a statement as required
under section 115 or wealth statement or wealth
reconciliation statement or statement under section 165
within the due date” the words and figure “Where any person
fails to furnish a return of income as required under section
114 within the due date” shall be substituted;
(ii) in column (3), for the words and figures “Such person shall
pay a penalty equal to 0.1% of the tax payable for each day
of default subject to a minimum penalty of five thousand
rupees and a maximum penalty of 25% of the tax payable in
respect of that tax year” the words and figures “Such person 26
shall pay a penalty equal to 0.1% of the tax payable in
respect of that tax year for each day of default subject to a
maximum penalty of 50% of the tax payable provided that if
the penalty worked out as aforesaid is less than twenty
thousand rupees or no tax is payable for that tax year such
person shall pay a penalty of twenty thousand rupees” shall
be substituted;
(iii) in column (4), for the commas, figures and words “,115,116
and 165” the word and figures “and 118” shall be substituted;
(b) after S.No.1, amended as aforesaid, the following new serial
numbers and the entries relating thereto in columns (2), (3) and (4)
shall be inserted, namely:-
“1A. Where any person
fails to furnish a
statement as
required under
section 115, 165 or
165A within the due
date.
Such person shall pay a
penalty of Rs.2500 for
each day of default
subject to a minimum
penalty of fifty
thousand rupees:
115, 165
and
165A27
1AA. Where any person
fails to furnish
wealth statement or
wealth reconciliation
statement.
Such person shall pay a
penalty of Rs.100 for
each day of default.
114, 115
and 116”;
(c) against S.No.8,-
(i) in paragraph (a), in column (3), for the word “five” the word
“twenty-five” shall be substituted;
(ii) in paragraph (b), in column (3), for the word “ten” the word
“fifty” shall be substituted; and
(iii) in paragraph (c), in column (3), for the word “fifty” the words
“one hundred” shall be substituted;
(d) against S.No.9, in column (3),-
(i) for the word “five” the word “twenty-five” shall be substituted;
(ii) for the word “ten” the word “fifty” shall be substituted; and
(e) after S.No.15, the following new serial number and the entries
relating thereto in columns (2), (3) and (4) shall be added,
namely:-28
“16. Any person who fails
to display NTN
Certificate at the
place of business as
required under this
Ordinance or the
rules made
thereunder.
Such person shall
pay a penalty of five
thousand rupees.
181C”;
(34) in section 210, in sub-section (1), for the words and comma, “Officer of
Inland Revenue, subordinate to the Commissioner” the words and
commas “Additional Commissioner, Deputy Commissioner, Assistant
Commissioner or Inland Revenue Officer” shall be substituted;
(35) in section 214C,-
(a) after sub-section (1), the following new sub-section shall be added,
namely:-
“(1A) Notwithstanding anything contained in this Ordinance
or any other law, for the time being in force, the Board shall keep
the parameters confidential”; and
(b) after sub-section (3), the following explanation shall be added,
namely:-
“Explanation.- For the removal of doubt, it is declared that
the powers of the Commissioner under section 177 are
independent of the powers of the Board under this section and 29
nothing contained in this section restricts the powers of the
Commissioner to call for the record or documents including books
of accounts of a taxpayer for audit and to conduct audit under
section 177.”;
(36) after section 227, the following new section shall be inserted, namely:-
“227A.- Reward to Inland Revenue officers and officials. (1) In
cases involving concealment or evasion of income tax and other taxes,
cash reward shall be sanctioned to the officers and officials of Inland
Revenue for their meritorious conduct in such cases and to the informer
providing credible information leading to such detection, as may be
prescribed by the Board, only after realization of part or whole of the taxes
involved in such cases.
(2) The Board may, by a notification in the official Gazette,
prescribe the procedure in this behalf and specify the apportionment of
reward sanctioned under this section for individual performance or to
collective welfare of the officers and officials of Inland Revenue.”;
(37) in Chapter XI,-
(a) in Part II, for the heading “DIRECTORATE-GENERAL OF
INTERNAL AUDIT” the heading “DIRECTORATES-GENERAL”
shall be substituted; and
(b) in Part III, for the heading “DIRECTORATE-GENERAL OF
WITHHOLDING TAXES” the heading “DIRECTORATESGENERAL” shall be substituted; 30
(38) after section 230A, the following new sections shall be inserted, namely:-
“230B. Directorate-General of Law. — (1) The DirectorateGeneral of Law shall consist of a Director General and as many Directors,
Additional Directors, Deputy Directors, Assistant Directors, Law Officers
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, specify
the functions, jurisdiction and powers of the Directorate- General of Law.
230C. Directorate-General of Research and
Development.-(1) The Directorate-General of Research and
Development 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,
specify the functions, jurisdiction and powers of the DirectorateGeneral of Research and Development.”;
(39) in section 233AA,-
(a) after the word “Pakistan”, the words and commas “ ,margin
financiers, trading financiers and lenders” shall be inserted;
(b) after the word “business”, the words, figure, brackets and commas
“or providing of any margin financing, margin trading or securities 31
lending under Securities (Leveraged Markets and Pledging) Rules,
2011 in share business” shall be inserted; and
(c) for the letters “IIA” the letters “IIB” shall be substituted;
(40) in section 234,-
(a) in sub-section (1), after the word “in” the words and letters “
Division III of” shall be inserted;
(b) in sub-section (2),-
(i) for the comma, occurring first, the words “or lump sum” shall
be substituted; and
(ii) after the word “installment”, occurring for the second time,
the words “or lump sum” shall be inserted;
(c) for sub-section (5) the following shall be substituted, namely:-
“ (5) Advance tax collected under this section shall be
adjustable.”;
(41) after section 236C, the following new section shall be inserted, namely:-
“236D. Advance tax on functions and gatherings.- (1) Every
prescribed person shall collect advance tax at the rate specified in Division
XI of Part IV of the First Schedule on the total amount of the bill from a
person arranging or holding a function in a marriage hall, marquee, hotel,
restaurant, commercial lawn, club, a community place or any other place
used for such purpose.
(2) Where the food, service or any other facility is provided by
any other person, the prescribed person shall also collect advance tax on 32
the payment for such food, service or facility at the rate specified in
Division XI of Part IV of the First Schedule from the person arranging or
holding the function.
(3) The advance tax collected under sub-section (1) and subsection (2) shall be adjustable.
(4) In this section,-
(a) “function” includes any wedding related event, a
seminar, a workshop, a session, an exhibition, a
concert, a show, a party or any other gathering held
for such purpose; and
(b) “prescribed person” includes the owner, a leaseholder, an operator or a manager of a marriage hall,
marquee, hotel, restaurant, commercial lawn, club, a
community place or any other place used for such
purpose.
“236E. Advance tax on foreign-produced films, TV
plays and serials.- (1) Any person responsible for censoring or
certifying a foreign-produced film, a TV drama serial or a play, for
screening and viewing, shall, at the time of censoring or certifying,
collect advance tax at the rates specified in Division XII of Part IV of
the First Schedule.
(2) The advance tax collected under sub-section (1) shall
be adjustable. 33
236F. Advance tax on cable operators and other
electronic media.- (1) Pakistan Electronic Media Regulatory
Authority, at the time of issuance of license for distribution services
or renewal of the license to a licensee, shall collect advance tax at
the rates specified in Division XIII of Part IV of the First Schedule.
(2) The tax collected under sub-section (1) shall be
adjustable.
(3) For the purpose of this section, "cable television
operator", “DTH”, “Distribution Service”, “electronic media”, "IPTV",
"loop holder", “MMDS”, "mobile TV", shall have the same meanings
as defined in Pakistan Electronic Media Regulatory Authority
Ordinance, 2002 (XIII of 2002) and Pakistan Electronic Media
Regulatory Authority Rules, 2009.
236G. Advance tax on sales to distributors, dealers and
wholesalers.- (1) Every manufacturer or commercial importer of
electronics, sugar, cement, iron and steel products, fertilizer,
motorcycles, pesticides, cigarettes, glass, textile, beverages, paint
or foam sector, at the time of sale to distributors, dealers and
wholesalers, shall collect advance tax at the rate specified in
Division XIV of Part IV of the First Schedule, from the aforesaid
person to whom such sales have been made.
(2) Credit for the tax collected under sub-section (1) shall
be allowed in computing the tax due by the distributor, dealer or 34
wholesaler on the taxable income for the tax year in which the tax
was collected.
236H. Advance tax on sales to retailers.- (1) Every
manufacturer, distributor, dealer, wholesaler or commercial
importer of electronics, sugar, cement, iron and steel products,
fertilizer, motorcycles, pesticides, cigarettes, glass, textile,
beverages, paint or foam sector, at the time of sale to retailers,
shall collect advance tax at the rate specified in Division XV of Part
IV of the First Schedule, from the aforesaid person to whom such
sales have been made.
(2) Credit for the tax collected under sub-section (1) shall
be allowed in computing the tax due by the retailer on the taxable
income for the tax year in which the tax was collected.
236I. Collection of advance tax by educational
institutions.- (1) There shall be collected advance tax at the rate
specified in Division XVI of Part-IV of the First Schedule on the
amount of fee paid to an educational institution.
(2) The person preparing fee voucher or challan shall
charge advance tax under sub-section (1) in the manner the fee is
charged.
(3) Advance tax under this section shall not be collected
from a person where annual fee does not exceed two hundred
thousand rupees.35
(4) The term “fee” includes, tuition fee and all charges
received by the educational institution, by whatever name called,
excluding the amount which is refundable.
(5) Tax collected under this section shall be adjustable
against the tax liability of either of the parents or guardian making
payment of the fee.
236J. Advance tax on dealers, commission agents and
arhatis etc.- (1) Every market committee shall collect advance tax
from dealers, commission agents or arhatis, etc. at the rates
specified in Division XVII of Part-IV of the First Schedule at the
time of issuance or renewal of licences.
(2) The advance tax collected under sub-section (1) shall
be adjustable.
(3) In this section “market committee” includes any
committee or body formed under any provincial or local law made
for the purposes of establishing, regulating or organizing
agricultural, livestock and other commodity markets.”; and
(42) in section 239B, after the word “thereunder”, the words “and in any other
law in force at the time of promulgation of this Ordinance” shall be
inserted.
(43) in the FIRST SCHEDULE,-
(I) in Part I,-
(A) in Division I,-36
(i) in clause (1), for the TABLE the following shall be
substituted, namely:-
“TABLE
S.No. Taxable income Rate of tax
(1) (2) (3)
1. Where the taxable income
does not exceed Rs.400,000
0%
2. Where the taxable income
exceeds Rs.400,000 but does
not exceed Rs.750,000
10% of the amount
exceeding
Rs.400,000
3. Where the taxable income
exceeds Rs.750,000 but does
not exceed Rs.1,500,000
Rs.35,000 + 15%
of the amount
exceeding
Rs.750,000
4. Where the taxable income
exceeds Rs.1,500,000 but
does not exceed Rs.2,500,000
Rs.147,500 + 20%
of the amount
exceeding
Rs.1,500,000
5. Where the taxable income
exceeds Rs.2,500,000 but
does not exceed Rs.4,000,000
Rs.347,500 + 25%
of the amount
exceeding 37
Rs.2,500,000
6. Where the taxable income
exceeds Rs.4,000,000 but
does not exceed Rs.6,000,000
Rs. 722,500 + 30%
of the amount
exceeding
Rs.4,000,000
7. Where the taxable income
exceeds Rs.6,000,000
Rs. 1,322,500 +
35% of the amount
exceeding
Rs.6,000,000”; and
(ii) in clause (1A),-
(a) for the TABLE the following shall be
substituted, namely:-
“TABLE
S.No. Taxable income. Rate of tax.
(1) (2) (3)
1. Where the taxable
income does not exceed
Rs.400,000
0%
2. Where the taxable
income exceeds
5% of the
amount 38
Rs.400,000 but does not
exceed Rs.500,000
exceeding
Rs.400,000
3. Where the taxable
income exceeds
Rs.500,000 but does not
exceed Rs.800,000
Rs.5,000 +
7.5% of the
amount
exceeding
Rs.500,000
4. Where the taxable
income exceeds
Rs.800,000 but does not
exceed Rs.1,300,000
Rs.27,500 +
10% of the
amount
exceeding
Rs.800,000
5. Where the taxable
income exceeds
Rs.1,300,000 but does
not exceed Rs.1,800,000
Rs.77,500 +
12.5% of the
amount
exceeding
Rs.13,00,000
6. Where the taxable
income exceeds
Rs.1,800,000 but does
not exceed Rs.2,200,000
Rs.140,000 +
15% of the
amount
exceeding
Rs.1,800,000 39
7. Where the taxable
income exceeds
Rs.2,200,000 but does
not exceed Rs.2,600,000
Rs.200,000 +
17.5% of the
amount
exceeding
Rs.2,200,000
8. Where the taxable
income exceeds
Rs.2,600,000 but does
not exceed
Rs.3,000,000
Rs.270,000 +
20% of the
amount
exceeding Rs.
2,600,000
9. Where the taxable
income exceeds
Rs.3,000,000 but does
not exceed
Rs.3,500,000
Rs.350,000 +
22.5% of the
amount
exceeding
Rs. 3,000,000
10. Where the taxable
income exceeds
Rs.35,00,000 but does
not exceed Rs.4,000,000
Rs. 462,500 +
25% of the
amount
exceeding
Rs.3,500,000
11. Where the taxable
income exceeds
Rs.587,500 +
27.5% of the 40
Rs.40,00,000 but does
not exceed Rs.7,000,000
amount
exceeding
Rs.4,000,000
12. Where the taxable
income exceeds
Rs.7,000,000
Rs.1,412,500
+ 30% of the
amount
exceeding
Rs.7,000,000”;
(b) the first proviso shall be omitted;
(B) Division IA shall be omitted;
(C) in Division II, in clause (i), for full stop at the end a colon
shall be substituted and thereafter the following proviso shall
be added, namely:-
“Provided that the rate of tax imposed on the taxable
income of a company other than a banking company, shall
be 34% for the tax year 2014.”;
(D) in Division VI,-
(i) in paragraph (a), in the table, in the first column,-
(a) against S.No (4), for the entry in the second
column the words, letters, figures and full stops
“Where the gross amount of rent exceeds
Rs.1,000,000 but does not exceed
Rs.2,000,000.”, shall be substituted; and41
(b) after S.No (4), amended as aforesaid, the
following new serial numbers and entries
relating thereto in the second and third
columns shall be added, namely:-
“(5) Where the gross
amount of rent
exceeds
Rs.2,000,000 but
does not exceed
Rs.3,000,000.
Rs.157, 500 plus
12.5 per cent of
the gross amount
of rent exceeding
Rs.2, 000,000.
(6) Where the gross
amount of rent
exceeds
Rs.3,000,000 but
does not exceed
Rs.4,000,000.
Rs.282, 500 plus
15 per cent of the
gross amount of
rent exceeding
Rs.3, 000,000.
(7) Where the gross
amount of rent
exceeds
Rs.4,000,000.
Rs.432, 500 plus
17.5 per cent of
the gross amount
of rent exceeding
Rs.4, 000,000.”;
(ii) in paragraph (b), in the table, in the first column,-42
(a) against S.No. (3), for the entry in the second
column (2), the words, letters, figures and full
stops “Where the gross amount of rent
exceeds Rs.1,000,000 but does not exceed
Rs.2,000,000." shall be substituted; and
(b) after S.No (3), amended as aforesaid, the
following new serial numbers and the entries
relating thereto in the second and third
columns shall be added, namely:-
“(4) Where the gross
amount of rent
exceeds
Rs.2,000,000 but
does not exceed
Rs.3, 000,000.
Rs.165,000 plus
12.5 per cent of the
gross amount of
rent exceeding
Rs.2, 000,000.
(5) Where the gross
amount of rent
exceeds
Rs.3,000,000 but
does not exceed
Rs.4, 000,000.
Rs.290,000 plus 15
per cent of the
gross amount of
rent exceeding
Rs.3,000,000.43
6) Where the gross
amount of rent
exceeds
Rs.4,000,000.
Rs.440,000 plus
17.5 per cent of the
gross amount of
rent exceeding
Rs.4,000,000.”;
(II) in Part II, for the figure, words and full stop “5% of the value of goods.” the
following shall be substituted, namely:-
“,-
(a) 5% of the value of goods in the case of industrial
undertakings;
(b) 5% in all other cases of companies; and
(c) 5.5% in case of all taxpayers other than those covered at (a)
and (b) above.”;
(III) in Part III,-
(a) in Division III,-
(i) in paragraph (1), for sub-paragraph (b) the following shall be
substituted, namely:-
“(b) in the case of sale of goods,-
(i) 3.5% of the gross amount payable in the case
of companies; and
(ii) 4% of the gross amount payable in the case of
other taxpayers.”;44
(ii) in paragraph (2), for sub-paragraph (ii) the following shall be
substituted, namely:-
“(ii) in the case of rendering of or providing of services,-
(a) 6% of the gross amount payable in the case of
companies; and
(b) 7% of the gross amount payable in the case of
other taxpayers.”;
(iii) in paragraph (3), for the figure, words and full stop “6% of
the gross amount payable.” the following shall be
substituted, namely,-
“,-
(i) “6% of the gross amount payable in the case of
companies; and
(ii) 6.5% of the gross amount payable in the case of other
taxpayers.”;
(b) in Division V,-
(i) in paragraph (a), in the table, in first column,-
a. against S.No. (4), for the entry in second column the
following shall be substituted, namely:-
“Where the gross amount of rent exceeds
Rs.1,000,000 but does not exceed
Rs.2,000,000."; and45
b. after S.No. (4), amended as aforesaid, the following
new serial numbers and entries relating thereto in the
second and third columns shall be added, namely:-
“(5) Where the gross
amount of rent
exceeds
Rs.2,000,000 but
does not exceed
Rs.3,000,000.
Rs.157, 500 plus 12.5
per cent of the gross
amount of rent
exceeding
Rs.2,000,000.
(6) Where the gross
amount of rent
exceeds
Rs.3,000,000 but
does not exceed
Rs.4,000,000.
Rs.282, 500 plus 15
per cent of the gross
amount of rent
exceeding
Rs.3,000,000.
(7) Where the gross
amount of rent
exceeds
Rs.4,000,000.
Rs.432, 500 plus 17.5
per cent of the gross
amount of rent
exceeding
Rs.4,000,000.”;
(ii) in para (b),-46
a. against S.No. (3), for the entry in second column the
following shall be substituted, namely:-
“Where the gross amount of rent exceeds
Rs.1,000,000 but does not exceed
Rs.2,000,000.";
b. after S.No. (3), amended as aforesaid, the following
new serial numbers and entries relating thereto in the
second and third columns shall be added, namely:-
“(4) Where the gross
amount of rent
exceeds
Rs.2,000,000 but
does not exceed
Rs.3,000,000.
Rs.165, 000 plus
12.5 per cent of the
gross amount of
rent exceeding
Rs.2,000,000.
(5) Where the gross
amount of rent
exceeds
Rs.3,000,000 but
does not exceed
Rs.4,000,000.
Rs.290, 000 plus
15 per cent of the
gross amount of
rent exceeding
Rs.3,000,000.
(6) Where the gross
amount of rent
Rs.440, 000 plus
17.5 per cent of the 47
exceeds
Rs.4,000,000.
gross amount of
rent exceeding
Rs.4,000,000.”; and
c. in Division VI, in paragraph (1), for the figure “10” the
figure “15” shall be substituted;
(IV) in Part IV,-
(a) in Division IIA, in the table, S. No. (iv) and the entries relating
thereto in the second and third columns shall be omitted;
(b) after Division IIA, amended as aforesaid, the following new Division
shall be inserted namely:-
“Division IIB
Rates for collection of tax by NCCPL
The rate of deduction under section 233AA shall be 10% of profit or
mark-up or interest earned by the member, margin financier or
securities lender.”;
(c) in Division III, after paragraph (3), the following new paragraph shall
be added, namely:-
“(4) where the motor vehicle tax is collected in lump sum,-
(a) Upto 1000cc Rs. 7,500
(b) 1001cc to 1199cc Rs. 12,500
(c) 1200cc to 1299cc Rs. 17,500
(d) 1300cc to 1599cc Rs. 30,000 48
(e) 1600cc to 1999cc Rs. 40,000
(f) 2000cc and above Rs. 80,000”;
(d) in Division VI, for the figure “0.2” the figure “0.3” shall be
substituted;
(e) for Division VII the following shall be substituted, namely:-
“DIVISION VII
PURCHASE OF MOTOR CARS AND JEEPS
The rate of payment of tax under section 231B shall be
as follows:–
Engine capacity Amount of tax
upto 850cc Rs.10,000
851cc to 1000cc Rs.20,000
1001cc to 1300cc Rs.30,000
1301cc to 1600cc Rs.50,000
1601cc to 1800cc Rs.75,000
1801cc to 2000cc Rs.100,000
Above 2000cc Rs.150,000”;
(f) in Division VIII, for the figure “5” the figure “10” shall be substituted;49
(g) after Division X, the following new Divisions shall be added,
namely:-
“DIVISION XI
Advance tax on functions and gatherings
The rate of tax to be collected under each sub-sections (1) and (2)
of section 236D shall be 10%.
DIVISION XII
Advance tax on foreign-produced films and TV plays
Rate of collection of tax under section 236E shall be as follows: -
(a) Foreign-produced film Rs. 1,000,000/-
(b) Foreign-produced TV drama
serial
Rs.100,000/-per
episode
(c) Foreign-produced TV play
(single episode)
Rs. 100,000
Division XIII
(1) The rate of tax to be collected under section 236F in
the case of Cable Television Operator shall be as
follows:-
License Category
as provided in
PEMRA Rules 2009
Tax on License
Fee
Tax on
Renewal
H Rs.7,500 Rs.10,000
H-1 Rs.10,000 Rs.15,00050
H-II Rs.25,000 Rs.30,000
R Rs.5,000 Rs.30,000
B Rs.5,000 Rs.40,000
B-1 Rs.30,000 Rs.50,000
B-2 Rs.40,000 Rs.60,000
B-3 Rs.50,000 Rs.75,000
B-4 Rs.75,000 Rs.100,000
B-5 Rs.87,500 Rs.150,000
B-6 Rs.175,000 Rs.200,000
B-7 Rs.262,500 Rs.300,000
B-8 Rs.437,500 Rs.500,000
B-9 Rs.700,000 Rs.800,000
B-10 Rs.875,500 Rs.900,000
(2) The rate of tax to be collected under section 236F in
the case of other Distribution Services shall be as
follows:-
Type of Channel
as provided in
PEMRA Rules 2009
Tax on
Issuance
of license
Tax
on Renewal
IPTV Rs.100,000 Rs.1,000,000
FM Radio Rs.100,000 Rs.100,000
MMDS Rs.200,000 Rs.100,000
Mobile TV Rs.100,000 Rs.50,000
Satellite TV station51
News or Current Rs.1,000,000 Rs.2,000,000
Sports Rs.1,000,000 Rs.1,000,000
Regional Language Rs.700,000 Rs.700,000
Health or Agro Rs.300,000 Rs.300,000
Education Rs.300,000 Rs.300,000
Entertainment Rs.1,000,000 Rs.1,000,000
Specialized subject
station Rs.500,000 Rs.200,000
Landing Rights per channel
News/Current
Affairs
Rs.1,000,000 Rs.5,000,000
Sports Rs.500,000 Rs.2,500,000
Educational Rs.200,000 Rs.1,000,000
Entertainment Rs.200,000 Rs.2,000,000
Children Rs.350,000 Rs.1,500,000;
Division XIV
Advance tax on sale to distributors, dealers or
wholesalers
The rate of collection of tax under section 236G shall
be 0.1% of the gross amount of sales.
Division XV
Advance tax on sale to retailers52
The rate of collection of tax under section 236H shall
be 0.5% of the gross amount of sales.
Division XVI
Collection of advance tax by educational
institutions
The rate of collection of tax under section 236I shall
be 5% of the amount of fee.
Division XVII
Advance tax on dealers, commission agents and
arhatis, etc.
The rate of collection of tax under section 236J shall
be as follows:-
Group Amount of tax
(per annum)
Group or Class A: Rs. 10,000
Group or Class B: Rs. 7,500
Group or Class C: Rs. 5,000
Any other category: Rs. 5,000.”;
(44) in the SECOND SCHEDULE,-
(a) in Part I,-
(i) in clause (53A), sub-clause (i) shall be omitted;
(ii) sub-clause (xxviii) shall be re-numbered as (xxviiia);
(iii) sub-clause (xxix) shall be re-numbered as (xxixa);53
(iv) clauses (92), (98A) and (103B) shall be omitted; and
(v) for clause (126E), the following shall be substituted, namely:-
“(126E) income derived by a zone enterprise as defined in
Special Economic Zones Act ,2012 (XX of 2012) for a period
of ten years starting from the date the developer certifies that
the zone enterprise has commenced commercial operation
and for a period of ten years to a developer of zone starting
from the date of signing of the development agreement in
the special economic zone as announced by the Federal
Government.”;
(b) in Part II, after clause (27), the following new clause shall be
inserted, namely,-
“(28) The rate of tax under section 148 on import of hybrid cars
shall be reduced as below:-
Engine capacity Rate of reduction
Up to 1200 cc 100%
1201 to 1800 cc 50%
1801 to 2500 cc 25 %”;
(c) in Part III,-
(i) clauses (1) and (2) shall be omitted;
(ii) in clause (7), for the word “company” the word “taxpayer”
shall be substituted;54
(d) in Part IV,-
(i) after clause (56) the following new clause (56A) shall be
added, namely:-
“(56A) The provisions of sub-section (7) of section
148 and clause (a) of sub-section (1) of section 169
shall not apply to a person who is liable to withholding
tax under section 236E.”;
(ii) in clause (59), in sub-clause (iv),paragraph (a) shall be
omitted;
(iii) after clause (72) the following new clauses shall be added,
namely:-
“(72A) The provisions of clause (l) of section 21,
sections 113 and 152 shall not apply in case of a Hajj
Group Operator in respect of Hajj operations provided
that the tax has been paid at the rate of Rs.3,500 per
Hajji for the tax year 2013 and Rs.5,000 per Hajji for
the tax year 2014 in respect of income from Hajj
operations.
(72B) the provisions of section 148 shall not apply to
an industrial undertaking if the tax liability for the
current tax year, on the basis of determined tax
liability for any of the preceding two tax years,
whichever is the higher, has been paid and a 55
certificate to this effect is issued by the concerned
Commissioner.”
(45) in the THIRD SCHEDULE, in PART II, in clause (1), for the figure “50” the
figure “25” shall be substituted; and
(46) in the SEVENTH SCHEDULE , in rule 6, in the second proviso, for the
words and figures “and at the rate of 35% for tax year 2014” shall be
omitted.
5. Amendments of the Federal Excise Act, 2005. ― In the Federal Excise Act,
2005, the following further amendments shall be made, namely:-
(1) in section 3, after sub-section (3), the following new sub-section shall be
inserted, namely:
“(3A) Subject to the provision of sub-section (3) of section 6 or any
notification issued thereunder, where excisable goods and services are
supplied to a person who has not obtained registration number, the
Federal Government may, by notification in the official
Gazette, charge, levy and collect, on the excisable goods and services
specified in that notification, a further duty at the rate of two per cent of the
value in addition to the rate specified in sub-sections (1), (3), (4) and (5) of
this section.”;
(2) in section 17, in sub-section (1), after clause (d) the following new clause
shall be inserted, namely:-
“(da) record relating to gate passes, inward or outward, and transport
receipts;”;56
(3) in section 33, after sub-section (1), the following new sub-section shall be
inserted, namely:–
“(1A) Where in a particular case, the Commissioner (Appeals) is of
the opinion that the recovery of tax levied under this Act, shall cause
undue hardship to the taxpayer, he, after affording opportunity of being
heard to the Commissioner or officer of Inland Revenue against whose
order appeal has been made, may stay the recovery of such tax for a
period not exceeding thirty days in aggregate.”;
(4) in section 35, after sub-section (3), the following explanation shall be
added, namely:–
“Explanation.- For the purpose of sections 35, 45 and 46 and for
removal of doubt, it is declared that the powers of the Board,
Commissioner or officer of Inland Revenue under these sections are
independent of the powers of the Board under section 42B and nothing
contained in section 42B restricts the powers of the Board, Commissioner
or officer of Inland Revenue under these sections or to conduct audit
under these sections.”;
(5) after section 42B the following new section shall be inserted, namely:-
“42C. Reward to Inland Revenue officers and officials.- (1) In
cases involving concealment or evasion of excise duty and other
taxes, cash reward shall be sanctioned to the officers and officials
of Inland Revenue for their meritorious conduct in such cases and
to the informer providing credible information leading to such 57
detection, as may be prescribed by the Board, only after realization
of part or whole of the taxes involved in such cases.
(2) The Board may, by notification in the official Gazette,
prescribe the procedure in this behalf and specify the
apportionment of reward sanctioned under this section for individual
performance or to collective welfare of the officers and officials of
Inland Revenue.”;
(6) In section 45, in sub-section (2), after the word “Board”, the words “or
Chief Commissioner” shall be inserted;
(7) after section 45, the following new section shall be inserted, namely:–
“45A. Monitoring or tracking by electronic or other means.―
(1) Subject to such conditions, restrictions and procedures as it may deem
fit to impose or specify, the Board may, by notification in the official
Gazette, specify any registered person or class of registered persons or
any goods or class of goods in respect of which monitoring or tracking of
production, sales, clearances, stocks or any other related activity may be
implemented through electronic or other means as may be prescribed.
(2) From such date, as may be prescribed by the Board, no
excisable goods shall be removed or sold by the manufacturer or any
other person without affixing tax stamp, banderole, stickers, labels, etc. in
any such form, style and manner as may be prescribed by the Board in
this behalf.”;
(8) in the First Schedule,–58
(a) in Table I, in column (1),–
(i) against serial numbers 4, 5 and 6, in column (4), for the word
“six”, the word “nine” shall be substituted;
(ii) for serial numbers 9 and 10 and the entries relating thereto
in columns (2), (3) and (4), the following shall be substituted,
namely:–
“9. Locally produced
cigarettes if their onpack printed retail
price exceeds rupees
two thousand two
hundred and eighty six
per thousand
cigarettes
24.02 Rupees two
thousand three
hundred and
twenty five per
thousand
cigarettes
10. Locally produced
cigarettes if their onpack printed retail
price does not exceed
rupees two thousand
two hundred and
eighty six per
thousand cigarettes
24.02 Rupees eight
hundred and
eighty per
thousand
cigarettes”;59
(iii) serial number 11 and the entries relating thereto in columns
(2), (3) and (4) shall be omitted; and
(iv) after serial number 53 and the entries relating thereto in
columns (2), (3) and (4), the following new serial numbers
and the entries relating thereto shall be added, namely:–
“54. Oilseeds Respective
headings
Forty
paisa per
kg
55. Motor cars, SUVs and
other motor vehicles of
cylinder capacity of 1800
cc or above, principally
designed for the
transport of persons
(other than those of
headings 87.02),
including station wagons
and racing cars of
cylinder capacity of 1800
cc or above.
87.03 Ten per
cent
ad.val.”;
and
(b) in Table II, in column (1),–
(i) serial number 7 and the entries relating thereto in columns
(2), (3) and (4) shall be omitted; and60
(ii) for serial number 8 and the entries relating thereto in
columns (2), (3) and (4) the following shall be substituted,
namely:–
“8. Services provided or rendered
by banking companies,
insurance companies,
cooperative financing societies,
modarabas, musharikas, leasing
companies, foreign exchange
dealers, non-banking financial
institutions, Assets Management
Companies and other persons
dealing in any such services.
98.13 Sixteen
per cent
of the
charges.”;
(9) in the Third Schedule,–
(a) in Table I, in column (1), serial numbers 5, 7 and 8 and the entries
relating thereto in columns (2) and (3) shall be omitted; and
(b) in Table-II, in column (1), serial number 8 and the entries relating
thereto in columns (2) and (3) shall be omitted.
6. Income Support Levy Act 2013.― There is hereby imposed an Income Support
Levy for the purposes herein after appearing;
AN
ACT
to provide for charge and collection of Income Support Levy61
WHEREAS it is desirable to provide financial assistance and other social
protection and safety net measures to economically distressed persons and families;
AND WHEREAS under the principles of policy as given in the Constitution of the
Islamic Republic of Pakistan, the State is obliged to promote social and economic wellbeing of the people and to provide basic necessities of life;
AND WHEREAS it is expedient to provide for financial resources for running an
income support fund for the economically distressed persons and their families through
a Levy to be called Income Support Levy;
It is hereby enacted as follows:-
1. Short title, extent and commencement.- (1) This Act may be
called the Income Support Levy Act, 2013.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions.- (1) In this Act, unless the context otherwise requires –
(a) “Levy” means the Income Support Levy leviable or payable under
this Act;
(b) “net moveable wealth” means the amount by which the aggregate
value of the moveable assets belonging to a person as declared in
the wealth statement for the relevant tax year, is in excess of the
aggregate value of all the liabilities owed by that person on the
closing date of the tax year.
Explanation.- For the purpose of this clause,-62
(i) where liability claimed relates wholly and exclusively to an
immovable asset, it shall not be claimed and allowed while
computing the net moveable wealth. However, where the
liability claimed relates wholly and exclusively to a moveable
asset, it shall be claimed and allowed as a straight deduction
while computing net moveable wealth; and
(ii) where the gross wealth of a person, declared in the wealth
statement includes both moveable and immoveable assets
and the nature of assets to which the liability relates is not
determinable, the liability to be allowed while determining the
net moveable wealth shall be calculated by the following
formula:-
(A / B) x C
Where –
A is the gross value of moveable assets;
B is the gross value of both moveable and
immoveable assts; and
C is the gross value of debts owed;
(c) “Officer of Inland Revenue” means the Officer of Inland Revenue as
defined under clause (38A) of section 2 of the Ordinance;
(d) “Ordinance” means the Income Tax Ordinance, 2001 (XLIX of
2001);
(e) “person” means an individual;63
(f) “prescribed” means prescribed by the rules made under this Act;
(g) “tax year” means the tax year as defined in clause (68) of section 2
of the Ordinance; and
(h) “wealth statement” means a wealth statement required to be filed
under section 116 of the Income Tax Ordinance, 2001.
(2) All other words and impressions used, but not defined herein, shall have
the same meaning as is assigned to them under the Ordinance.
3. Charge of Levy.- Subject to the provisions contained in this Act, there
shall be charged for every tax year commencing on and from tax year
2013 a Levy, in respect of value of net moveable assets held by a person
on the last date of the tax year at the rate specified in section 9 and in the
manner specified hereunder.
4. Time and manner of payment of Levy.- A person who is liable to
pay the Levy under this Act shall pay the Levy along with wealth
statement.
5. Assessment of Levy.- The Officer of Inland Revenue shall, by an
order in writing, determine the Levy payable, and shall serve upon the
person a notice of demand specifying the sum payable and the time within
which it shall be paid and thereupon such sum shall be paid to such
account and in such manner as may be prescribed, within the time
specified in the notice.
6. Default surcharge.- Without prejudice to any liability under any
other law for the time being in force, where a person fails to pay Levy as 64
provided under section 4 or the levy so paid is less than the amount
payable, he shall be liable to pay default surcharge at the rate of sixteen
per cent per annum on the amount not paid or the amount by which the
Levy paid falls short of the amount payable, calculated from the date it
was payable to the date it is paid or the date of an order under section 5,
whichever is earlier.
7. Recovery of Levy.-The provisions of the Ordinance shall, so far as may
be practicable, apply to the collection of Levy under this Act as they apply
to the collection of tax under the Ordinance.
8. Appeals, revisions and rectifications.- The provisions of the
Ordinance shall, so far as may be practicable, apply to an appeal against,
or revision or rectification of, an order under this Act as they apply to an
appeal, revision or rectification under the Ordinance.
9. Rate of Levy.- The rate of levy payable under this Act shall be 0.5%
of the net moveable wealth exceeding one million rupees.
10. Power to make rules.- The Federal Board of Revenue may, by
notification in the official Gazette, make rules for carrying out the purposes
of this Act.65
DECLARATION UNDER THE PROVISONAL COLLECTION OF TAXES
ACT, 1931 (XVI OF 1931)
The provisions of sub-clause (10) of clause 2, sub-clause (2), sub-clause
(3), sub-clause (7), sub-clause (13) and sub-clause (14) of clause 3 and sub-clause (6),
sub-clause (8)(a)(ii), sub-clause (8)(a)(iii), sub-clause (8)(a)(iv), sub-clause (8)(b) and
sub-clause (9) of clause 5 of this Bill shall have effect, for the purpose of this declaration
and for the purposes of the provisions of the Provisional Collection of Taxes Act, 1931
(XVI of 1931), as if they were provisions for imposition of sales tax or duties of federal
excise or duties of customs. It is hereby declared accordingly in terms of section 3 of the
said Act that it is expedient in the public interest that the aforesaid provisions shall have
effect on the 13th June, 2013.
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, 2013. Various provisions have been explained in the
Notes on Clauses.
(MUHAMMAD ISHAQ DAR)
Minister for Finance and Revenue
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