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ORDINANCE NO. III OF 2012

FINANCE (AMENDMENT) ORDINANCE, 2012

An Ordinance further to amend certain fiscal laws

[Gazette of Pakistan, Extraordinary, Part-I, 24th April, 2012]

No. 2(1)/2012-Pub.—The following Ordinance promulgated by the President is hereby published for general information:—

WHEREAS it is expedient to further amend certain fiscal laws and matters for the purpose hereinafter appearing;

AND WHEREAS the National Assembly and Senate are not in session and the President is satisfied that circumstances exist which render if necessary to take immediate action;

Now, THEREFORE, in exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to make and promulgate the following Ordinance, namely:—

1.       Short title and commencement.—(1) This Ordinance may be called the Finance (Amendment) Ordinance, 2012.

(2)  It shall come into force at once.

2.       Amendment of Finance Act, 1989 (Act V of 1989).—In the Finance Act, 1989 (Act V of 1989), in Section 7,—

(i)      in sub-section (1), after the word "thereon", the words, brackets, commas and figures ", and shares of a public company, listed on a registered stock exchange in Pakistan by a person defined in Section 80 of the Income Tax Ordinance, 2001 (XLIX of 2001)," shall be inserted;

(ii)     in sub-section (2), after clause (E), the following shall be added, namely:—

"(F)    purchase of shares of a public company listed on a registered stock exchange inPakistan

0.01% of the purchase value"; and

(iii)    in sub-section (4), in the last proviso, for the words "modaraba certificates or any instrument of redeemable capital or shares of a public company from the resident persons", the words "shares of a public company" shall be substituted.

3.  Amendment of Ordinance, XLIX of 2001.—In the Income Tax Ordinance, 2001 (XLIX of 2001), the following further amendment shall be made, namely:—

(1)     In Section 2, after clause (35-A), a new clause shall be inserted, namely:—

          "(35-AA)            "NCCPL" means National clearing Company of Pakistan Limited, which is a company incorporated under the Companies Ordinance, 1984 (XLVII of 1984) and licensed as "Clearing House" by the Securities and Exchange Commissioner of Pakistan;";

(2)     In Section 37-A, in sub-section (1), after the word "year", occurring for the first time, the comma and words ", other than a gain that is exempt from tax under this Ordinance" shall be inserted;

(3)     after Section 100-A, the following new section, shall be inserted, namely:—

          "100-B Special provision relating to capital gain tax.—(1) Capital gains on disposal of listed securities and tax thereon, subject to Section 37-A, shall be computed, determined, collected and deposited in accordance with the rules laid down in the Eighth Schedule.

(2)     The provisions of sub-section (1) shall not apply to the following persons or class of persons, namely;—

          (a)      a mutual fund;

          (b)     a banking company, a non-banking finance company, and an insurance company subject to tax under the Fourth Schedule;

          (c)      a modaraba;

          (d)     a "foreign institutional investor" being a person registered with NCCPL as a foreign institutional investor; and

          (g)      any other person or class of persons notified by the Board.";

(4)     in Section 233-A,—

          (a)      in sub-section (1),—

                   (i) in clause (b), after the semicolon, at the end, the word "and" shall be added; and

                   (ii)            clause (c) shall be omitted; and

          (b)     in sub-section (2), for the brackets and letter "(c)”, the brackets and letter "(b)" shall substituted;

(5)     In the First Schedule,—

          (i)      in Part I, in Division VII, in the Table, in column (1),—

                   (a) against serial number 1, in column (4), for the existing rates, the following shall be substituted:–

                        "10%

                        10%

                        10%

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