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FINANCE ACT, 2014

An Act to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2014 and to amend and enact certain laws

[Gazette of Pakistan, Extraordinary, Part-I, 26th June, 2014]

ACT No. IX OF 2014

No. F. 22 (11)/2014-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 25th June. 2014 and is hereby published for general information:—

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, 2014 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, 2014.

(2)     It extends to the whole of Pakistan.

(3)     It shall come into force from the first day of July, 2014, except sub-sections (11) and (12) of Section 2 and sub- sections (2), (9), (10), (11) and (12) of Section 4 which shall have effect from the next day of assent given to this Act by the President of the Islamic Republic of Pakistan.

  1. 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,—

(a)      for clause (k), the following shall be substituted, namely:—

“(k)    “customs-station” means any customs-station, customs-airport, an inland river port, land customs-station or any place declared as such under Section 9;”; and

(b)     clause (m) shall be omitted;

(2)     in Section 7, for the word “Central”, the word “Federal” shall be substituted;

(3)     in Section 18, after sub-section (1), the following new sub-section shall be inserted, namely:—

“(1A) Notwithstanding anything contained in sub-section (1), customs duties shall be levied at such rates on import of goods or class of goods as are prescribed in the Fifth Schedule, subject to such conditions, limitations and restrictions as prescribed therein.”;

(4)     in Section 18A, for the words, figures and brackets “Central Excises and Salt Act, 1944 (I of 1944)”, the words and figures “the Federal Excise Act, 2005” shall be substituted;

(5)     in Section 25,—

(a)     in sub-section (5), clause (d) shall be omitted; and

(b)     in sub-section (6),—

                   (i)         for the comma, occurring for eighth time, the word “and” shall be substituted; and

                   (ii)        the word, letter and brackets “and (d)” shall be omitted;

(6)     in Section 32, in sub-sections (2), (3) and (3A), after the word “duty”, the comma and word “, taxes” shall be inserted;

(7)     in Section 80, in sub-section (3), after the word “duty”, the comma and the words “, taxes and other charges levied thereon” shall be inserted;

(8)     in Section 81, in sub-section (1),—

(a)      in the first proviso, after the word “duty”, the comma and words “,taxes and other charges” shall be inserted; and

(b)     in the second proviso, for the word “tax”, the words “taxes and other charges” shall be substituted;

(9)     in Section 185B, for clause (a), the following shall be substituted, namely:—

“(a)    no court other than the Special Judge having jurisdiction shall try an offence punishable under this Act, except the offences relating to narcotics and narcotic substances which shall be tried by the Special Courts established under the Control of Narcotic Substances Act, 1997 (XXV of 1997);”;

(10)   in Section 194, in sub-section (3),—

(a)      for the words “Customs and Excise Group”, the words “Pakistan Customs Service” shall be substituted; and

(b)     for the word “five”, the word “three” shall be substituted;

(11)   the amendments set out in the First Schedule to this Act shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969); and

(12)   the provisions in the Second Schedule to this Act shall be added as the Fifth Schedule to the Customs Act, 1969 (IV of 1969).

  1. Amendment of Act XXVII of 1974.—In the Members of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974), in Section 4, in sub-section (1), for the words “seven hundred and fifty”, the words “two thousand” shall be substituted.
  2. 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, in clause (27), for the semicolon at the end a colon shall be substituted, and thereafter the following proviso shall be added, namely:—

“Provided that the Board may through a general order specify zones or areas for the purpose of determination of highest retail price for any brand or variety of goods;”;

(2)     in Section 3,—

(i)      in sub-section (2),—

                   (a)        in clause (a), in the proviso, the word “and”, at the end, shall be omitted; and

                   (b)        after clause (a), amended as aforesaid, the following new clause (aa) shall be inserted, namely:—

                   “(aa) goods specified in the Eighth Schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein; and”;

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

          “(3B) Notwithstanding anything contained in sub-sections (1) and (3), sales tax on the import and supply of the goods specified in the Ninth Schedule to this Act shall be charged, collected and paid at the rates, in the manner, at the time, and subject to the procedure and conditions as specified therein or as may be prescribed, and the liability to charge, collect and pay the tax shall be on the persons specified therein.”;

(iii)    for sub-section (8), the following shall be substituted, namely:—

          “(8) Notwithstanding anything contained in any law or notification made thereunder, in case of supply of natural gas to CNG stations, the Gas Transmission and Distribution Company shall charge sales tax from the CNG stations at the rate of seventeen per cent of the value of supply to the CNG consumers, as notified by the Board from time to time, but excluding the amount of tax, as provided in clause (46) of Section 2.”;

(iv)    after sub-section (8), substituted as aforesaid, the following new sub-section shall be added, namely:—

          “(9) Notwithstanding anything contained in sub-section (1), tax shall be charged from retailers through their monthly electricity bills, at the rate of five per cent where the monthly bill amount does not exceed rupees twenty thousand and at the rate of seven and half per cent where the monthly bill amount exceeds the aforesaid amount, subject to the exclusions, procedure, restrictions and limitations as prescribed in Chapter II of the Sales Tax Special Procedure Rules, 2007:

          Provided that the tax under this sub-section shall be in addition to the tax payable on supply of electricity under sub-sections (1), (1A) and (5).”;

(3)     in Section 3B, for sub-section (2), the following shall be substituted and shall be deemed to have been always so substituted, namely:—

“(2) Notwithstanding anything contained in any law or judgment of a court, including the Supreme Court and a High Court, any amount payable to the Federal Government under sub-section (1) shall be deemed to be an arrear of tax or charge payable under this Act and shall be recoverable accordingly and any claim for refund in respect of such amount shall neither be admissible to the registered person nor payable to any court of law or to any person under direction of the court.”;

(4)     in Section 4, in clause (d), for the words “zero-rated goods”, the words “goods at reduced rate of sales tax” shall be substituted;

(5)     in Section 7, in sub-section (1),—

(a)      for the word “section”, occurring for the first time, the words and figure “sections 8 and” shall be substituted; and

(b)     after the words “output tax”, the commas, words, brackets and figures “, excluding the amount of further tax under sub-section (1A) of Section 3,” shall be inserted;

(6)     in Section 8, in sub-section (1),—

(i)      in clause (d), the word “and”, at the end, shall be omitted;

(ii)     after clause (e), for full stop at the end a semicolon shall be substituted and thereafter the following new clauses shall be added, namely:—

                   “(f)       goods and services not related to the taxable supplies made by the registered person;

                   (g)        goods and services acquired for personal or non-business consumption;

                   (h)        goods used in, or permanently attached to, immoveable property, such as building and construction materials, paints, electrical and sanitary fittings, pipes, wires and cables, but excluding such goods acquired for sale or re-sale or for direct use in the production or manufacture of taxable goods; and

                   (i)         vehicles falling in Chapter 87 of the First Schedule to the Customs Act, 1969 (IV of 1969), parts of such vehicles, electrical and gas appliances, furniture, furnishings, office equipment (excluding electronic cash registers), but excluding such goods acquired for sale or re-sale.”;

(7)     in Section 40B, after the proviso, the following explanation shall be added, namely:—

“Explanation.—For the removal of doubt, it is declared that the powers of the Board, Chief Commissioner and Commissioner under this section are independent of the provisions of Section 40.”;

(8)     after Section 50A, the following new section shall be inserted, namely:—

“50B. Electronic scrutiny and intimation.—(1) The Board may implement a computerized system for the purpose of automated scrutiny, analysis and cross-matching of returns and other available data relating to registered persons and to electronically send intimations to such registered persons about any issue detected by the system.

(2)  The intimation sent by the computerized system under sub-section (1) shall be in the nature of an advice or advance notice, aimed at allowing the registered person to clarify the issue, rectify any mistake or take other corrective action before any legal or penal action is initiated.

(3)  The computerized system shall be so implemented so as to keep record of the issues detected, intimations sent, responses received and actions taken, and to present such information to the officer of Inland Revenue and to the Board in the prescribed manner.

(4)  The Board may prescribe procedures and specifications for the smooth and efficient operation of the computerized system.”;

(9)  in the Fifth Schedule, in column (1), after Serial No. 8 and entries relating thereto in column (2), the following new serial numbers and entries relating thereto shall be added, namely:—

“9.     Goods exempted under Section 13, if exported by a manufacturer who makes local supplies of both taxable and exempt goods.

  1. Petroleum Crude Oil (PCT heading 2709.0000).
  2. Raw materials, components, sub-components and parts, if imported or purchased locally for use in the manufacturing of such plant and machinery as is chargeable to sales tax at the rate of zero percent, subject to the condition that the importer or purchaser of such goods holds a valid sales tax registration showing his registration category as “manufacturer”; and in case of import, all the conditions, restrictions, limitations and procedures as are imposed by notification under Section 19 of the Customs Act, 1969 (IV of 1969), shall apply.
  3. The following goods and the raw materials, packing materials, sub-components, components, sub-assemblies and assemblies imported or purchased locally for the manufacture of the said goods, subject to the conditions, limitations and restrictions as specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007:–

(i)      Colors in sets (PCT heading 3213.1000)

(ii)     Writing, drawing and marking inks (PCT heading 3215.9010 and 3215.9090)

(iii)    Erasers (PCT heading 4016.9210 and 4016.9290)

(iv)    Exercise books (PCT heading 4820.2000)

(v)     Pencil sharpeners (PCT heading 8214.1000)

(vi)    Geometry boxes (PCT heading 9017.2000)

(vii)   Pens, ball pens, markers and porous tipped pens (PCT heading 96.08)

(viii)  Pencils including color pencils (PCT heading 96.09)

(ix)    Milk including flavored milk (PCT heading 04.01 and 0402.9900)

(x)     Yogurt (PCT heading 0403.1000)

(xi)    Cheese (PCT heading 0406.1010)

(xii)   Butter (PCT heading 0405.1000)

(xiii)  Cream (PCT heading 04.01 and 04.02)

(xiv)  Desi ghee (PCT heading 0405.9000)

(xv)   Whey (PCT heading 04.04)

(xvi)  Milk and cream, concentrated and added sugar or other sweetening matter (PCT heading 0402.1000)

(xvii) Preparations for infant use put up for retail sale (PCT heading 1901.1000)

(xviii)     Fat filled milk (PCT heading 1901.9090)

(xix)  Bicycles (PCT heading 87.12).”;

(10)   in the Sixth Schedule,—

          (i)      in Table-1, in column (1),—

                   (a) against Serial No. 24, in column (3), after the figure and comma, “1510.0000,” the figure and comma “1511.1000,” shall be inserted;

                   (b)            against Serial No. 59, in column (2) after the word, “solution”, the comma and words “,cochlear implants system”, and in column (3), after the figure “99.25”, the comma and figure “, 99.37” shall respectively be inserted; and

                   (c) after Serial No. 71 and the entries relating thereto in columns (2) and (3), the following new Serial Nos. and entries relating thereto shall be added, namely:—

“72 Uncooked poultry meat 02.07
73 Milk and cream 04.01 and 04.02
74 Flavored milk 0402.9900
75 Yogurt 0403.1000
76 Whey 04.04
77 Butter 0405.1000
78 Desi ghee 0405.9000
79 Cheese 0406.1010
80 Processed cheese not grated or powdered 0406.3000
81 Cotton seed 1207.2000
82 Frozen, prepared or preserved sausages and similar products of poultry meat or meat offal 1601.0000
83 Meat and similar products of prepared, frozen or preserved meat or meat offal of all types including poultry meat and fish 1602.3200, 1602.3900, 1602.5000, 1604.1100, 1604.1200, 1604.1300, 1604.1400, 1604.1500, 1604.1600, 1604.1900, 1604.2010, 1604.2020, 1604.2090, 1604.3000
84 Preparations for infant use, put up for retail sale 1901.1000
85 Fat filled milk 1901.9090
86 Colours in sets (Poster colours) 3213.1000
87 Writing, drawing and marking inks 3215.9010 and 3215.9090
88 Erasers 4016.9210 and 4016.9290
89 Exercise books 4820.2000
90 Pencil sharpeners 8214.1000
91 Energy saver lamps 8539.3910
92 Sewing machines of the household type 8452.1010 and 8452.1090
93 Bicycles 87.12
94 Wheelchairs 8713.1000 and 8713.9000
95 Vessels for breaking up 89.08
96 Other drawing, marking out or mathematical calculating instruments (geometry box) 9017.2000
97 Pens and ball pens 96.08
98 Pencils including colour pencils 96.09
99 Compost (non-chemical fertilizer) produced and supplied locally Respective headings
100 Construction materials to Gawadar Export Processing Zone’s investors and to Export Processing Zone Gawadar for development of Zone’s infrastructure Respective headings
101 Raw and pickled hides and skins, wet blue hides and skins, finished leather, and accessories, components and trimmings, if imported by a registered leather goods manufacturer, for the manufacture of goods wholly for export, provided that conditions, procedures and restrictions laid down in rules 264 to 278 of the Customs Rules, 2001 are duly fulfilled and complied with. Respective headings
102 Machinery, equipment and materials imported either for exclusive use within the limits of Export Processing Zone or for making exports therefrom, and goods imported for warehousing purpose in Export Processing Zone, subject to the conditions that such machinery, equipment, materials and goods are imported by investors of Export Processing Zones, and all the procedures, limitations and restrictions as are applicable on such goods under the Customs Act, 1969 (IV of 1969) and rules made thereunder shall mutatis mutandis, apply. Respective headings
103 Import and supply thereof, up to the year 2020, of ships of gross tonnage of less than 15 LDT and all floating crafts including tugs, dredgers, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistan entity and flying the Pakistan flag, except ships or crafts acquired for demolition purposes or are designed or adapted for use for recreation or pleasure purposes, subject to the condition that such ships or crafts are used only for the purpose for which they were procured, and in case such ships or crafts are used for demolition purposes within a period of five years of their acquisition, sales tax applicable to such ships purchased for demolition purposes shall be chargeable. Respective headings
104 Substances registered as drugs under the Drugs Act, 1976 (XXXI of 1976) and medicaments as are classifiable under Chapter 30 of the First Schedule to the Customs Act. 1969 (IV of 1969) except the following, even if medicated or medicinal in nature, namely:— Respective headings
(a)            filled infusion solution bags imported with or without infusion giving sets;
(b)           scrubs, detergents and washing preparations;
(c)            soft soap or no-soap soap;
(d)           adhesive plaster;
(e)            surgical tapes
(f)            liquid paraffin;
(g)            disinfectants; and
(h)           cosmetics and toilet preparations.
105 Raw materials for the Basic manufacture of pharmaceutical active ingredients and for manufacture of pharmaceutical products, provided that in case of import, only such raw materials shall be entitled to exemption which are liable to customs duty not exceeding ten per cent advalorem, either under the First Schedule to the Customs Act, 1969 (IV of 1969) or under a notification issued under Section 19 thereof. Respective headings
106 Import of Halal edible offal of bovine animals. 0206.1000, 0206.2000, 0206.8000 and 0206.9000
107 Import and supply of iodized salt bearing brand names and trademarks whether or not sold in retail packing. 2501.0010
108 Components or sub-components of energy saver lamps, namely;—
(a)            Electronic Circuit 8539.9040
(b)           Plastic Caps (Upper and Lower) 8539.9040
(c)            Base Caps B22 and E27 8539.9040
(d)           Tungsten Filaments 8539.9040
(e)            Lead-in-wire 8539.9040
(f)            Fluorescent Powder (Tri Band Phospher) 3206.5010
(g)            Adhesive Additive 3824.9099
(h)           Al-Oxide Suspension 3824.9099
(i)            Capping Cement 3214.1050
(j)            Stamp Pad Ink 3215.9010
(k)           Gutter for Suspension 2850.0000
109 Goods imported temporarily with a view to subsequent exportation, as concurred by the Board, including passenger service item, provision and stores of Pakistani Airlines. Respective headings
110 The following items with dedicated use of renewable source of energy like solar and wind, subject to certification by the Alternative Energy Development Board (AEDB), Islamabad:—
(a)            Solar PV panels; 8541.5000
(b)           LVD induction lamps; 8539.3990
(c)            SMD, LEDs with or without ballast, with fittings and fixtures; 9405.1090
(d)           Wind turbines including alternators and mast; 8502.3100
(e)            Solar torches; 8513.1040
(f)            Lanterns and related instruments; 8513.1090
(g)            PV modules along with related components, including inverters, charge controllers and batteries. 8541.4000, 8504.4090, 9032.8990 and 8507.0000
111 White crystalline sugar 1701 9910 and 1701.9920
112 Following cardiology/cardiac surgery, neurovascular, electrophysiology, endosurgery, endoscopy, oncology, urology, gynaecology, disposables and other equipment:— Respective headings
A.            ANGIOPLASTY PRODUCTS

1.             Coronary Artery Stents

2.             Drugs Eluting Coronary Artery Stents

3.             Coronary Artery Dilatation Catheters (Balloons)

4.             PTCA Guide Wire

5.             PTCA Guiding Catheters

6.             Inflation Devices/Priority Packs

B.             ANGIOGRAPHY PRODUCTS

1.             Angiography Catheters

2.             Sheaths

3.             Guide Wires

4.             Contrast Lines

5.             Pressure Lines

6.             Mannifolds

C.            CONTRAST MEDIA FOR ANGIOGRAPHY/ ANGIOPLASTY

1.             Angiography Accessories

2.             ASD Closure Devices

3.             ASD Delivery Systems

4.             VSD Closure Devices

5.             VSD-Delivery System

6.             Guide Wires

7.             Sizing Balloons

8.             Sizing Plates

9.             PDA Closure Devices

10.           PDA Delivery system

D.            TEMPORARY PACEMAKERS

(with leads, connectors and accessories)

E.             PERMANENT PACEMAKER

(with leads, connectors and accessories)

F.             HEART FAILURE DEVICES

(with leads, connectors and accessories)

G.            IMPLANTABLE CARDIOVERTES

(with leads, connectors and accessories)

H.            CARDIAC ELECTROPHYSIOLOGY PRODUCTS

1.             Electrophysiology catheters

2.             Electrophysiology cables

3.             Electrophysiology connectors

I.              LEAR CARDIOLOGY PRODUCTS

1.             Radioactive isotopes

2.             Cold kits (Cardioloite MAA, DTPA etc)

J.             CARDIAC SURGERY PRODUCTS

1.             Oxygenators

2.             Cannulas

3.             Prosthetic Heart Valves

4.             Luminal Shunts for heart surgery

5.             Artificial limbs and appliances

K.            EQUIPMENT

1.             Cardiac Angiography Machine

2.             Echocardiography Machines

3.             ETT Machines

4.             Gamma Camera for Nuclear cardiology studies

L.             PERIPHERAL INTERVENTIONS EQUIPMENT

Disposables and other equipment for peripheral interventions including stents (including carotid and wall stents), balloons, sheaths, catheters, guide wires, filter wires coils, needles, valves (including rotating homeostatic valves), connecting cables, inflation devices adaptors.

113 High Efficiency Irrigation Equipment

(If used for agriculture sector)

(1)           Submersible pumps (up to 75 lbs and head 150 meters) 8413.7010
(2)           Sprinklers including high and low pressure (center pivotal) system, conventional sprinkler equipment, water reel traveling sprinkler, drip or trickle irrigation equipment, mint irrigation sprinkler system. 8424.8100 8424.2010
(3)           Air release valves, pressure gauges, water meters, back flow preventers, and automatic controllers. 8481.1000, 8481.3000, 9026.2000, 9032.8990
114 Green House Farming and Other Green House Equipment.

(If used for agriculture sector)

(1)           Tunnel farming equipment. 8430.3100, 8430.3900
(2)           Green houses (prefabricated). 9406.0010
115 Plant, machinery and equipment imported for setting up fruit processing and preservation units in Gilgit-Baltistan, Balochistan Province and Malakand Division upto the 30th June, 2019 subject to the same conditions and procedure as are applicable for import of such plant, machinery and equipment under the Customs Act, 1969 (IV of 1969). Respective headings
116 Plant, machinery and equipment imported for setting up industries in FATA upto the 30th June, 2019 subject to the same conditions and procedure as are applicable for import of such plant, machinery and equipment under the Customs Act, 1969 (IV of 1969). Respective headings.”;

(ii)     in TabIe-2, in column (1),—

                   (a)        against Serial No. 3, for the entry in column (2), the following shall be substituted, namely:—

                   “Supplies made by cottage industry.”;

                   (b)        after the already omitted Serial No. 12, the following new Serial Nos. and entries relating thereto in columns (2) and (3) shall be added, namely:—

13 Reclaimed lead, if supplied to recognized manufacturers of lead batteries Respective headings
14 Waste paper Respective headings
15 (a)            Sprinkler Equipment

(b)           Drip Equipment

(c)            Spray Pumps and nozzles

Respective headings
16 Raw cotton and ginned cotton Respective headings.”; and

(iii)    after Table-2, amended as aforesaid, the following new Table shall be added, namely:—

“Table-3

The plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of the Annexure below, falling under the HS Codes specified in column (3) of that Annexure, shall be exempt from the whole of sales tax, subject to the following conditions, besides the conditions specified in column (4) of the Annexure, namely:—

(i)      the imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering Development Board;

(ii)     except for S. No. 9 and 14 of the Annexure, the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and format as per Annex-A that the imported items are the company’s bonafide requirement. He shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under Section 155D of the Customs Act, 1969. In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Project Director or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; and

(iii)    in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for the complete plant, duly supported by the contract, layout plan and drawings:

          Explanation.—For the purpose of Table-3, capital goods mean any plant, machinery, equipment, spares and accessories, classified in Chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, required for—

                   (a)        the manufacture or production of any goods and includes refractory bricks and materials required for setting up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like; or

                   (b)        use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry.

ANNEXURE

S. No. Description PCT heading Conditions
(1) (2) (3) (4)
1. Machinery and equipment for initial installation, balancing, modernization, replacement or expansion of desalination plants, coal firing system, gas processing plants and oil and gas field prospecting. Respective headings Nil
2. Following machinery, equipment, apparatus, and medical, surgical, dental and veterinary furniture, materials, fixtures and fittings imported by hospitals and medical or diagnostic institutes:– (a) The project requirement shall be approved the Board of Investment (BOI). The authorized officer of BOI shall certify the item-wise requirement of the project in the prescribed format and manner as per Annex-B and shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user-ID and password obtained under Section 155D of the Customs Act, 1969 (IV of 1969);
A. Medical Equipment.
(1)           Dentist chairs 9402.1010
(2)           Medical surgical dental or veterinary furniture 9402.9090 (b) the goods shall not be sold or otherwise disposed of without prior approval of the Board and payment of customs duties and taxes at statutory rates leviable at the time of import. Breach of this condition shall be construed as a criminal offence under the Customs Act, 1969 (IV of 1969).;
(3)           Operating Table. 9402.9010
(4)           Emergency Operating Lights. 9405.4090
(5)           Hospital Beds with mechanical fittings 9402.9020
(6)           Gymnasium equipment. 9506.9100
(7)           Cooling Cabinet. 8418.5000
(8)           Refrigerated Liquid Bath. 3824.9099
(9)           Contrast Media Injections (for use in Angiography & MRI etc). 3822.0000
B. Cardiology/Cardiac Surgery Equipment
(1)           Cannulas. 9018.3940
(2)           Manifolds. 8481.8090
(3)           Intravenous cannula i.v. catheter. 9018.3940
C. Disposable Medical_Devices
(1)           Self-disabling safety sterile syringes. 9018.3110
(2)           Insulin syringes. 9018.3110
D. Other Related Equipments
(1)           Fire extinguisher. 8424.1000
(2)           Fixtures & fittings for hospitals Respective headings
3. 1.     Machinery, equipment, materials, capital goods, specialized vehicles (4×4 non-luxury) i.e. single or double cabin pickups, accessories, spares, chemicals and consumables meant for mine construction phase or extraction phase. Respective headings 1. This concession shall be available to those mineral exploration and extraction companies or their authorized operators or contractors who hold permits, licences, lease and who enter into agreements with the Government of Pakistan or a Provincial Government;
2.     Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for mine construction or extraction phase. Respective headings 2. Temporarily imported goods shall be cleared against a security in the form of a post-dated cheque for the amount of sales tax, along with an undertaking to pay the sales tax at the statutory rate in case such goods are not re-exported on conclusion of the project; and

3. The goods shall not be sold or otherwise disposed of without prior approval of the Board and the payment of sales tax leviable at the time of import. These shall, however, be allowed to be transferred to other entitled mining companies with prior approval of the Board.

4. Coal mining machinery, equipment, spares. including vehicles for site use i.e. single or double cabin pick-ups, imported for Thar Coal Field. Respective headings (a) This concession shall be available to those mining companies or their authorized operators or contractors who hold permits, licenses, leases and who enter into agreements with the Government of Pakistan or a Provincial Government.

(b) The goods shall not be sold or otherwise disposed of without prior approval of the Board and the payment of customs duties and taxes leviable at the time of import. These shall, however, be allowed to be transferred to other entitled mining companies with prior approval of the Board.

5. 1. Machinery, equipment and spares meant for initial installation, balancing, modernization, replacement or expansion of projects for power generation through oil, gas, coal, wind and wave energy including under construction projects, which entered into an implementation agreement with the Government of Pakistan.

2. Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the construction of project.

Respective headings (i) This concession shall also be available to primary contractors of the project upon fulfillment of the following conditions, namely:—

(a)           the contractor shall submit a copy of the contract or agreement under which he intends to import the goods for the project;

(b)           the Chief Executive or head of the contracting company shall certify in the prescribed manner and format as per Annex-A that the imported goods are the projects bona fide requirement; and

(c)           the goods shall not be sold or otherwise disposed of without prior approval of the FBR on payment of sales tax leviable at the time of import;

(ii) temporarily imported goods shall be cleared against a security in the form of a post-dated cheque for the differential amount between the statutory rate of sales tax and the amount payable under this notification, along with an undertaking to pay the sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.

6. 1. Machinery, equipment and spares meant for initial installation, balancing, modernization, replacement or expansion of projects for power generation through gas, coal, hydel, and oil including under construction projects.

2. Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the construction of project.

Respective headings -do-
7. 1. Machinery, equipment and spares meant for initial installation, balancing, modernization, replacement or expansion of projects for power generation through nuclear and renewable energy sources like solar, wind, micro-hydel bio-energy, ocean, waste-to-energy and hydrogen cell etc.

2. Construction machinery, equipment and specialized vehicles. excluding passenger vehicles, imported on temporary basis as required for the construction of project.

Explanation.–The expression “projects for power generation” means any project for generation of electricity whether small, medium or large and whether for supply to the national grid or to any other user or for in house consumption.

Respective headings -do-
8. 1. Machinery and equipment meant for power transmission and grid stations including under construction projects. Explanation.–For the purpose of this serial number, ”machinery and equipment” shall mean,–

(a)           machinery and equipment operated by power of any description, such as is used in the generation of power;

(b)           apparatus, appliances, metering and testing apparatus, mechanical and electrical control, transmission gear and transmission tower, power transmission and distribution cables and conductors, insulators, damper spacer and hardware and parts thereof adapted to be used in conjunction with the machinery and equipment as specified in clause (a) above; and

(c)           components parts of machinery and equipment, as specified in clause (a) and (b) above, identifiable for use in or with machinery imported for the project and equipment including spares for purposes of the project.

2. Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the construction of project.

Respective headings -do-
9. Following machinery, equipment and other education and research related items imported by technical training institutes, research institutes, schools, colleges and universities:– Nil
(1) Quartz reactor tubes and holders designed for insertion into diffusion and oxidation furnaces for production of semiconductor wafers. 7017.1010
(2) Other dryers 8419.3900
(3) Filtering or purifying machinery and apparatus for water 8421.2100
(4) Other filtering or purifying machinery and apparatus for liquids 8421.2900
(5) Personal weighing machines, including baby scales, household scales 8423.1000
(6) Scales for continuous weighing of goods on conveyors. 8423.2000
(7) Constant weight scales and scales for discharging a predetermined weight of material into a bag or container, including hopper scales 8423.3000
(8) Other weighing machinery having a maximum weighing capacity not exceeding 30 kg 8423.8100
(9) Other weighing machinery having a maximum weighing capacity exceeding 30 kg but not exceeding 5,000kg 8423.8200
(10) Other weighing machinery 8423.8900
(11) Weighing machine weights of all kinds; parts of weighing machinery of machines of heading 8423.2000 & 8423.3000 8423.9000
(12) Other weighing machine weights of all kinds; parts of weighing machinery of machines of heading 8423.2000 & 8423.3000 8423.9000
(13) Networking equipments like routers, LAN bridges, hubs excluding switches and repeaters. 8517.6970
(14) Other furnaces and ovens 8514.3000
(15) Electronic balances of a sensitivity of 5 eg or better, with or without weights. 9016.0010
(16) Other balances of a sensitivity of 5 eg or better, with or without weights. 9016.0090
(17) Thermostats of a kind used in refrigerators and air-conditioners 9032.1010
(18) Other thermostats 9032.1090
(19) Manostats 9032.2000
(20) Other instruments and apparatus Hydraulic or pneumatic 9032.8100
(21) Other instruments and apparatus 9032.8990
(22) Parts and accessories of automatic regulating or controlling instruments and apparatus 9032.9000
(23) Spares, accessories, and reagents for scientific equipments. Respective headings
10. Machinery, equipment, raw Respective materials, components and other headings capital goods for use in buildings, fittings, repairing or refitting of ships, boats or floating structures imported by Karachi Shipyard and Engineering Works Limited. Respective headings Nil
11. Following machinery and equipment for marble, granite and gem stone extraction and processing industries: 1. For the projects of Gem Stone & Jewelery Industry, CEO/COO, Pakistan Gem and Jewelery Company shall certify in the prescribed format and manner as per Annex-B that the imported goods are bonafide project requirement. The authorized person of the Company shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under Section 155D of the Customs Act, 1969.
(1) Polishing cream or material 3405.4000, 3405.9000
(2) Fiber glass mesh 7019.5190
(3) Chain saw/diamond wire saw in all sizes and dimensions and spares thereof, diamond wire joints all types and dimensions, chain for chain saw and diamond wires for wire saw and spare widia. 8202.4000, 8202.9100 2. For the projects of Marble & Granite Industry. CEO/COO. Pakistan Stone Development Company shall certify in the prescribed format and manner as per Annex-B that the imported goods are bonafide project requirement. The authorized persons of the Company shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under Section 155D of the Customs Act, 1969.
(4) Gin saw blades. 8202.9910
(5) Gang saw blades/diamond saw blades/multiple blades or all types and dimensions. 8202.9990
(6) Air compressor (27 cft and above). 8414.8010
(7) Machine and tool for stone 8464.9000 & work; sand blasting machines; Respective tungsten carbide tools; diamond headings tools & segments (all type & dimensions), hydraulic jacking machines, hydraulic manual press machines, air/hydro pillows, compressed air rubber pipes, hydraulic drilling machines, manual and power drilling machines, steel drill rods and spring (all sizes and dimensions), whole finding system with accessories, manual portable rock drills, cross cutter and bridge cutters. 8464.9000 & Respective headings 3. The goods shall not be sold or otherwise disposed of within a period of five years of their import except with the prior approval of the FBR and payment of customs duties and taxes leviable at the time of import.
(8) Integral drilling steel for horizontal and vertical drilling, extension thread rods ‘ for pneumatic super long drills, tools and accessories for rock drills. 8466.9100
12. Machinery, equipment and other project related items including capital goods, for setting up of hotels, power generation plants, water treatment plants and other infrastructure related projects located in an area of 30 km around the zero point in Gwadar. Respective headings 1. The Division dealing with the subject-matter of industries, shall certify in the prescribed manner and format as per Annex-B that the imported goods are bonafide project requirement. The authorized officer of the Ministry shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under Section 155D of the Customs Act, 1969.

2. The goods shall not be sold or otherwise disposed of without prior approval of the FBR and payment of customs duties .and taxes leviable at the time of import.

13. Effluent treatment plants Respective headings Nil
14. Following items with dedicated use of renewable source of energy like solar, wind, geothermal etc:– Nil
1. Solar Home Systems.
(a)           Inverters. 8504.4090
(b)           Charge controllers/current controllers. 9032.8990
(c)           Energy saver lamps of varying voltages (operating on DC). 8539.3910
(d)           Energy saver lamps of varying voltages (operating on AC). 8539.3910
(e)           Light emitting diodes (light emitting in different colors). 8541.5000
(f)            Water pumps operating on solar energy. 8413.7090, 8413.7010
(g)           Water purification plants operating on solar energy. 8421.2100
(h)           Batteries NiCd, Li-ion & Lead Acid specific utilization and integrated with solar electrification system. 8507.3000, 8507.8000
(i)            Energy Saving Tube Lights 8539.3920
2. Solar Parabolic Trough Power Plants. 8502.3900
(a)           Parabolic Trough collectors modules. 8503.0010
(b)             Absorbers/Receivers tubes. 8503.0090
(c)           Steam turbine of an output exceeding 40MW. 8406.8100
(d)           Steam turbine of an output not exceeding 40MW. 8406.8200
(e)           Sun tracking control system. 8543.7090
(f)            Control panel with other accessories. 8537.1090
3. Solar Dish Sterling Engine. 8412.8090
(a)           Solar concentrating dish. 8543.7000
(b)           Sterling engine. 8543.7000
(c)           Sun tracking control system. 8543.7090
(d)           Control panel with accessories. 8406.8200
(e)           Generator 8501.6100
4. Solar Air Conditioning System 8415.1090
(a)           Absorption chillers. 8418.6990
(b)           Cooling towers. 8419.8910
(c)           Pumps. 8413.3090
(d)           Air handling units. 8415.8200
(e)           Fan coils units. 8415.9099
(f)            Charging & Testing equipment. 9031.8000
5. Solar Desalination System 8421.2100
(a)           Solar photo voltaic panels 8541.4000
(b)           Solar water pumps 8413.3090
(c)           Storage batteries. 8507.2090
(d)           Charge controllers. 9032.8990
(e)           Inverters. 8504.4090
6. Solar Thermal Power Plants with accessories. 8502.3900
7. Solar Water Heaters with accessories. 8419.1900
(a)           Vacuum tubes (Glass). 7020.0090
(b)           Selective coating for absorber plates. Respective headings
(c)           Copper, aluminum and stainless steel sheets. Respective headings
(d)           Copper and aluminum tubes. Respective heading
8. PV Modules 8541.4000
(a)           Solar cells. 8541.4000
(b)           Tempered Glass. 7007.2900
(c)           Aluminum frames. 7610.9000
(d)           O-Ring. 4016.9990
(e)           Flux 3810.1000
(f)            Adhesive labels. 3919.9090
(g)           Junction box + Cover 8538.9090
(h)           Sheet mixture of Paper and plastic 3920.9900
(i)            Ribbon for PV Modules (made of silver & Lead) Respective headings
(j)            Bypass diodes. 8541.1000
(k)           EVA (Ethyl Vinyl Acetate) Sheet (Chemical). 3920.9900
9. Solar Cell Manufacturing Equipment.
(a)           Crystal (Grower) Puller (if machine). 8479.8990
(b)           Diffusion furnace. 8514.3000
(c)           Oven. 8514.3000
(d)           Wafering machine 8479.8990
(e)           Cutting and shaping machines for silicon ingot. 8461.9000
(f)            Solar grade polysilicon material, 3824.9099
(g)           Phosphene Gas. 2848.0000
(h)           Aluminum and silver paste. Respective headings
10. Pyranometers and accessories for solar data collection 9030.8900
11. Solar chargers for charging electronic devices 8504.4020
12. Remote control for solar charge controller. 8543.7010
13. Wind Turbines. 8412.8090
(a)           Rotor 8412.9090
(b)           Hub 8412.9090
(c)           Generator 8501.6490
(d)           Deep cycle battery 8507.8000
14. Wind water pump 8413.8190
15. Geothermal energy equipments.
(1)           Geothermal Heat Pumps 8418.6100. 8418.6990
(2)           Geothermal Reversible Chillers 8418.6990
(3)           Air handlers for indoor quality control equipments 8415.8300
(4)           Hydronic heat pumps 8418.6100
(5)           Slim Jim heat exchangers 8419.5000
(6)           HDPE fusion tools 8515.8000
(7)           Geothermal energy Installation tools and Equipment 8419.8990
(8)           Dehumidification equipment 8479.6000
(9)           Thermostats and Intelli Zone 9032.1090
16. Any other item approved by the Alternative Energy Development Board (AEDB) and concurred to by the FBR.
15. Following items for promotion of renewable energy technologies Nil
1.     LVD induction lamps 8539.3990
2.     SMD, LEDs with or without ballast with fittings and fixtures. 9405.1090
3.     Wind turbines including alternators and mast. 8502.3100
4.     Solar torches 8513.1040
5.     Lanterns and related instruments 8513.1090
6.     PV module, with or without, the related components including invertors, charge controllers and batteries 8541.4000, 8504.4090, 9032.8990, 8507.0000 Subject to certification by AEDB that the inverters, charge controllers and batteries being imported are in quantities which commensurate with the PV modules being imported.
16. Plant, machinery, equipment and specific items used in production of bio-diesel. Respective headings The Alternative Energy Development Board (AEDB), Islamabad shall certify in the prescribed manner and format as per Annex-B that the imported goods are bonafide project requirement. The goods shall not be sold or otherwise disposed of within a period of five years of their import except with the prior approval of the FBR and payment of customs duties and taxes leviable at the time of import.

Annex-A

Header Information
NTNVFTN of Importer Regulatory Authority no. Name of Regulatory authority
(1)                                                          (2) (3)
Details of Input goods (to be filled by the chief executive of the importing company) Goods imported (Collectorate of import)
HS Code Descri-ption Specs Custom Duty rate (Applic-able) Sales Tax (Applic-able) WHT Quantity UOM Quantity imported Collectorate CRN/ Mach No. Date of CRN/ Mach. No.
(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

CERTIFICATE. It is certified that the description and quantity mentioned above are commensurate with the project requirement and that the same are not manufactured locally. It is further certified that the above items shall not be used for any other purpose. Signature of Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive

Name _________________________

N.I.C. No. __________________________________

NOTE:–In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished online against a specific user I.D. and password obtained under Section 155D of the Customs Act, 1969.

Explanation.—

Chief Executive means.—

  1. owner of the firm, in case of sole proprietorship; or
  2. partner of firm having major share, in case of partnership firm; or
  3. Chief Executive Officer or the Managing Director in case of limited company or multinational organization; or
  4. Principal Officer in case of a foreign company.

Annex-B

Header Information
NTN/FTN of Importer Approval No.
(1)                                                                   (2)
Details of Input goods (to be filled by the authorized officer of the Regulatory Authority) Goods imported (Collectorate of import)
HS Code Descri-ption Specs Custom Duty rate (Applic-able) Sales Tax (Applic-able) WHT Quantity UOM Quantity imported Collect-orate CRN/ Mach No. Date of CRN/ Mach. No.
(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

CERTIFICATE. Before certifying the above-authorized officer of the Regulatory Authority shall ensure that the goods are genuine and bonafide requirement of the project and that the same are not manufactured locally.

Signature __________________

Designation ________________

NOTE:—In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished on line against a specific user I.D. and password obtained under Section 155D of the Customs Act, 1969. “;

(11)   after the Sixth Schedule, amended as aforesaid, the following new Schedule shall be inserted, namely,—

“EIGHTH SCHEDULE

[See clause (aa) of sub-section (2) of Section 3]

Table-1

S. No. Description Heading Nos. of the First Schedule to the Customs Act, 1969 (IV of 1969) Rate of Sales Tax Condition
(1) (2) (3) (4) (5)
1. Soyabean meal 2304.0000 5%
2. Oil cake and other solid residues, whether or not ground or in the form of pellets 2306.1000 5%
3. Directly reduced iron 72.03 5%
4. Oilseeds meant for sowing. Respective headings 5% Import thereof subject to the condition that the concerned department of the Division dealing with the subject-matter of oil seed certifies that the imported seeds are fungicide and insecticide treated and are meant for sowing.
5. Raw cotton and ginned cotton Respective headings 5% On import
6. Plant and machinery not manufactured locally and having no compatible local substitutes Respective headings 5% (i)    On import of such plant and machinery by registered manufacturers, post-dated cheque(s) equal to the differential amount of sales tax payable at import stage, shall be submitted to the customs authorities, which shall be returned on furnishing proof of filing of first sales tax return after import of such machinery, showing the import of such machinery;

(ii)   On import by commercial importers, good-for-payment cheque, bank guarantee, pay order or treasury challan showing deposit, equal to the differential amount of sales tax payable at import stage, shall be submitted to the customs authorities, which shall be returned back, or as the case may be, refunded, after evidence of subsequent supply to registered manufacturers or industrial users is furnished to the customs authorities;

(iii)  Supply of such imported plant and machinery by commercial importers to unregistered persons or persons other than manufacturers shall be liable to standard rate of tax, and evidence to that effect shall be produced to the customs authorities for release of the above mentioned instruments or refund of the amount paid at import stage;

(iv)  Subsequent supply of plant and machinery imported or acquired by registered manufacturers to unregistered persons or persons other than manufacturers shall be liable to tax at standard rate; and

(v)   the validity period of instruments furnished under this provision shall not be less than one hundred and twenty days.

Explanation.—For the purpose of this provision, plant and machinery means such plant and machinery as is used in the manufacture or production of goods.

TABLE-2

Plant, machinery, equipment and apparatus, including capital goods, specified in column (2) of the Annexure below, falling under the HS Codes specified in column (3) of that Annexure, shall be charged to sales tax at the rate of five percent, subject to the following conditions, besides the conditions specified in column (4) of the Annexure, namely:—

(i)      the imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering Development Board;

(ii)     the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and format as per Annex-A that the imported items are the company’s bonafide requirement. He shall furnish all relevant information Online to Pakistan Customs Computerized System against a specific user ID and password obtained under Section 155D of the Customs Act, 1969. In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Project Director or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; and

(iii)    in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for the complete plant, duly supported by the contract, lay out plan and drawings.

          Explanation.—In this Table the expression, capital goods mean any plant, machinery, equipment, spares and accessories, classified in chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, required for—

                   (a)        the manufacture or production of any goods, and includes refractory bricks and materials required for setting up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like; or

                   (b)        use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry.

Annexure

S. No Description PCT heading Conditions
(1) (2) (3) (4)
1 Machinery and equipment for development of grain handling and storage facilities. Respective Headings Nil
2 Cool chain machinery and equipment. Respective Headings Nil
3 Following items imported by Call Centers, Business Processing Outsourcing facilities duly approved by the Pakistan Telecommunication Authority. Nil
(1) Telephone sets/head sets. 8517.1100
(2) Cat 5/Cat 6/Power cables 8544.4990
(3) PABX Switch 8517.6290
(4) Plasma TV 8528.7212
(5) Dedicated telephone exchange system for call centers. 8517.6290
(6) Other (digital call recorders) 8519.8990
4 1. Machinery, equipment, materials, capital goods, specialized vehicles (4×4 non luxury) i.e. single or double cabin pickups, accessories, spares, chemicals and consumables meant for mineral exploration phase.

2. Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the exploration phase.

Respective Headings 1. This concession shall be available to those Mineral Exploration and Extraction Companies or their authorized operators or contractors who hold permits, licenses, leases and who enter into agreements with the Government of Pakistan or a Provincial Government.

2. Temporarily imported goods shall be cleared against a security in the form of a post-dated cheque for the differential amount between the statutory rate of customs duty and sales tax and the amount payable under this notification, along with an undertaking to pay the customs duty and sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.

3. The goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs duties and taxes leviable at the time of import. These shall however be allowed to be transferred to other entitled mining companies with prior approval of the Board.

5 Complete plants for relocated industries. Respective Headings Nil
6 Machinery, equipment and other capital goods meant for initial installation, balancing, modernization, replacement or expansion of oil refining (mineral oil, hydro- cracking and other value added petroleum products), petrochemical and petrochemical downstream products including fibers and heavy chemical industry, cryogenic facility for ethylene storage and handling. Respective Headings Nil
7 Proprietary Formwork System for building/structures of a height of 100 ft and above and its various items/ components consisting of the following, namely:— 7308.4000 (i) If not manufactured locally and imported by the construction companies registered with the Pakistan Engineering Council:
(1) Plastic tube. 3917.2390 (ii) the system is to be procured from a well renowned international manufacturer;
(2) Plastic tie slot filters/plugs, plastic cone. 3926.9099 (iii) a certificate from one of the following International Pre-shipment Inspection Companies/Survey Firms to the extent that all the components/parts are to be used in the Proprietary Formwork System for construction of structures/ buildings of more than 100 feet height, is produced, namely:—
(3) Standard steel ply panels, Special sized steel ply panels, wedges, tube clamps (B-Type & G Type), push/pull props, brackets (structure), steel soldiers (structure), drop head, standard, prop tic, buard rail post (structure), coupler brace, cantilever frame, decking beam/Infill beam and doorway angles. 7308.4000 (a) Messrs Lloyds of London;

(b) Messrs Quality Tech, LLC; (c) Messrs ABS; (d) Messrs Bureau Veritas; and (e) Messrs SGS; and (iv) The Pakistan Engineering Council shall certify that the imported Proprietary Formworks System conform to the requirement of the Company’s project.

(4) Lifting Unit (Structure) 7308.9090 -do-
(5) Bolts, tie bolts, anchor bolt assembly (fastener), anchor screw (fastener). 7318.1590 -do-
(6) Nuts 7318.1690 -do-
(7) Steel pins, tie wing nut (fastener). 7318.1900 -do-
(8) Steel washers, water plate (fastener). 7318.2290 -do-
(9) Adjustable base jack (thread rod with nut and steel plate), adjustable fork head (threaded rod with nut and steel channel). 8425.4900 -do-

Annex-A

Header Information
NTNVFTN of Importer Regulatory Authority no. Name of Regulatory authority
(1)                                                          (2) (3)
Details of Input goods (to be filled by the chief executive of the importing company) Goods imported (Collectorate of import)
HS Code Descri-ption Specs Custom Duty rate (Applic-able) Sales Tax (Applic-able) WHT Quantity UOM Quantity imported Collect-orate CRN/ Mach No. Date of CRN/ Mach. No.
(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

CERTIFICATE. It is certified that the description and quantity mentioned above are commensurate with the project requirement and that the same are not manufactured locally. It is further certified that the above items shall not be used for any other purpose.

Signature of Chief Executive, or

the person next in hierarchy duly

authorized by the Chief Executive

Name __________________

N.I.C. No. ______________________

NOTE:—In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished on line against a specific user I.D. and password obtained under Section 155D of the Customs Act, 1969.

Explanation.—

Chief Executive means.—

  1. owner of the firm, in case of sole proprietorship; or
  2. partner of firm having major share, in case of partnership firm; or
  3. Chief Executive Officer or the Managing Director in case of limited company or multinational organization; or
  4. Principal Officer in case of a foreign company.

Annex-B

Header Information
NTN/FTN of Importer Approval No.
(1)                                                                   (2)
Details of Input goods (to be filled by the authorized officer of the Regulatory Authority) Goods imported (Collectorate of import)
HS Code Descri-ption Specs Custom Duty rate (Applic-able) Sales Tax (Applic-able) WHT Quantity UOM Quantity imported Collect-orate CRN/ Mach No. Date of CRN/ Mach. No.
(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

CERTIFICATE. Before certifying the above-authorized officer of the Regulatory Authority shall ensure that the goods are genuine and bonafide requirement of the project and that the same are not manufactured locally.

Signature__________________

Designation________________

NOTE:—In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished on line against a specific user I.D. and password obtained under Section 155D of the Customs Act, 1969. “; and

(12) After the Eighth Schedule, inserted as aforesaid, the following new schedule shall be added, namely:—

“NINTH SCHEDULE

[See sub-section (3B) of Section 3]

TABLE

(1) (2) (3) (4) (5)
S. No. Description / Specification of Goods Sales tax on import (payable by importer at the time of import) Sales tax (chargeable at the time of registration of IMEI number by CMOs) Sales tax on supply (payable at time of supply by CMOs)
1. Subscriber Identification Module (SIM) Cards Rs. 250
2. A. Low Priced Cellular Mobile Phones or Satellite Phones

(i) All cameras: 2.0 mega-pixels or less

(ii) Screen size: 2.6 inches or less

(iii) Key pad

Rs. 150 Rs. 150
B. Medium Priced Cellular Mobile Phones or Satellite Phones

(i) One or two cameras: between 2.1 to 10 mega-pixels

(ii) Screen size: between 2.6 inches and 5.0 inches

(iii) Micro-processor: less than 2 GHZ

Rs. 250 Rs. 250
C. Smart Cellular Mobile Phones or Satellite Phones

(i) One or two cameras: 10 mega-pixels and above

(ii) Touch Screen: size 5.0 inches and above

(iii) 4GB or higher Basic Memory

(iv) Operating system of the type IOS, Android V2.3, Android Gingerbread or higher, Windows 8 or Blackberry RIM

(v) Micro-processor: 2GHZ or higher, dual core or quad core

Rs. 500 Rs. 500

LIABILITY, PROCEDURE AND CONDITIONS

(i)      In case of the goods specified against S. No. 1 of the Table, the liability to charge, collect and pay tax shall be on the Cellular Mobile Operator (CMO) at the time of supply. In case of the goods specified against S. No. 2, the liability to pay sales tax at the time of import shall be on the importer, and the liability to charge, collect and pay sales tax payable on supplies shall be on the Cellular Mobile Operator at the time of registering International Mobile Equipment Identity (IMEI) number in his system.

(ii)     The Cellular Mobile Operators shall, if not already registered, obtain registration under the Sales Tax Act, 1990.

(iii)    No IMEI shall be registered in his system by a Cellular Mobile Operator without charging and collecting the sales tax as specified in the Table.

(iv)    The Cellular Mobile Operator shall deposit the sales tax so collected through his monthly tax return in the manner prescribed in Section 26 of the Sales Tax Act; 1990 and rules made thereunder.

(v)     The Cellular Mobile Operator shall maintain proper records of all IMEI numbers registered for a period of six years, and such records shall be produced for inspection, audit or verification, as and when required, by an authorized officer of Inland Revenue.

(vi)    The Pakistan Telecommunication Authority shall provide data regarding IMEI numbers registered with other Cellular Mobile Operators to prevent double taxation on the same IMEI number in case of switching by a subscriber from one operator to another, and to provide data regarding registration of 1ME1 numbers to the Board on monthly basis.

(vii)   No adjustment of input tax shall be admissible to the Cellular Mobile Operator or any purchaser of cellular mobile phone against the sales tax charged and paid in terms of this Schedule.

(viii)  The tax specified in column (4) of the Table shall be charged, collected and paid with effect from such date as may be specified by the Board and the sales tax specified in column (3) shall stand withdrawn from the date so specified.

Note:—Notwithstanding anything contained in any other law for the time being in force, the levy, collection and payment of sales tax under notification No. S. R. O. 460(I)/2013, dated the 30th May, 2013, shall be deemed to always have been lawfully and validly levied, collected and paid.”;

  1. Amendment of Act XVII of 1996.—In the Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996), the following further amendment shall be made and shall be deemed to have been so made on the 1st day of March, 2014, namely:—

In the aforesaid Act, in Section 33 A, in sub-section (4), clause (c) shall be omitted.

  1. Amendments of Ordinance XXIV of 2001.—In the Controller General of Accounts (Appointment, Functions and Powers) Ordinance, 2001 (XXIV of 2001), in Section 5, in clause (b),–

(a)      after the word “may” the commas and words “,with the approval of the President,” shall be inserted; and

(b)     for the semi colon, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:–

          “Provided that in case of exigency Ministry of Finance or Finance Departments, as the case may be, may authorize payments directly from the State Bank of Pakistan and submit such information to Controller General to enable him to record the transactions;”.

  1. Amendments of Ordinance XLIX of 2001.—In the Income Tax Ordinance, 2001 (XLIX of 2001), the following further amendments shall be made, namely:—

(1)     in Section 2,—

                   (a)        clauses (8), (9), (10) and (11) shall be re-numbered as clauses (9), (10), (11) and (8) respectively;

                   (b)        after clause (23), the following new clause shall be inserted, namely:—

                   “(23A) “filer” means a taxpayer whose name appears in the active taxpayers’ list issued by the Board from time to time or is holder of a taxpayer’s card;”;

          (c)      in clause (29),—

                   (i) for the word “and”, occurring for the first time, a comma shall be substituted;

                   (ii)            after the figure “234”, the word and figure “and 236M” shall be inserted;

                   (iii) the words and commas “but does not include, in case of a shareholder of a company, the amount representing the face value of any bonus share or the amount of any bonus declared, issued or paid by the company to the shareholders with a view to increasing its paid up share capital”, shall be omitted;

                   (d)       after clause (35B), the following new clause shall be inserted, namely:—

                               “(35C) “non-filer” means a person who is not a filer;”;

                   (e)        after clause (59A), the following new clause shall be inserted, namely:—

                               “(59B) “Special Judge” means the Special Judge appointed under Section 203;”; and

                   (f)        after clause (61), the following new clause shall be inserted, namely:—

                               “(61A) “stock fund” means a collective investment scheme or a mutual fund where the investible funds are invested by way of equity shares in companies, to the extent of more than seventy per cent of the investment;”;

(2)     Section 4A shall be omitted;

(3)     in Section 8, in clauses (d) and (e), for the word “sections”, the word “section” shall be substituted;

(4)     in Section 13, in sub-section (8), the word “the”, occurring last, shall be omitted;

(5)     in Section 18, in sub-section (3), for the word “lesser”, occurring twice, the word “lessor” shall be substituted;

(6)     in Section 21, in clause (e), after the word “fund”, occurring for the second time a comma shall be inserted;

(7)     in Section 31, in sub-section (1), for the expression “Banking Tribunals Ordinance, 1984” the expression “Financial Institutions (Recovery of Finances) Ordinance, 2001 (XLVI of 2001)” shall be substituted;

(8)     in Section 37, in sub-section (1A), the words and comma “held for a period upto two years,” shall be omitted;

(9)     in Section 37A, in sub-section (1),—

          (a)      first proviso shall be omitted;

                   (b)        in the second proviso, the word “further” shall be omitted;

                   (c)        in sub-section (3), after the word “capital” the comma and words “,debt securities” shall be inserted;

                   (d)       after sub-section (3), amended as aforesaid, the following new sub-section shall be inserted, namely:—

                               “(3 A) For the purpose of this section, “debt securities” means—

                   (a) Corporate Debt Securities such as Term Finance Certificates (TFCs), Sukuk Certificates (Sharia Compliant Bonds), Registered Bonds, Commercial Papers, Participation Term Certificates (PTCs) and all kinds of debt instruments issued by any Pakistani or foreign company or corporation registered in Pakistan; and

                   (b)            Government Debt Securities such as Treasury Bills (T-bills), Federal Investment Bonds (FIBs), Pakistan Investment Bonds (PIBs), Foreign Currency Bonds, Government Papers, Municipal Bonds, Infrastructure Bonds and all kinds of debt instruments issued by Federal Government, Provincial Governments, Local Authorities and other statutory bodies.”;

(10)   in Section 39, in sub-section (1),—

          (i)      in clause (j), the word “and” shall be omitted;

                   (ii)        in clause (1), after the semicolon the word “and” shall be added;

                   (iii)       after clause (1), amended as aforesaid, the following new clause shall be added, namely:–

                               “(m) income arising to the shareholder of a company, from the issuance of bonus shares.”;

(11)   in Section 49, after sub-section (4), for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:—

          “Provided that the income from sale of spectrum licences by Pakistan Telecommunication Authority on behalf of the Federal Government after the first day of March 2014 shall be treated as income of the Federal Government and not of the Pakistan Telecommunication Authority.”;

(12)   in Section 56A, for the word “onword”, the word “onward” shall be substituted;

(13)   in Section 59AA, in sub-section (6), for the words “Central Board of Revenue” the word “Board” shall be substituted;

(14)   Section 88A shall be omitted;

(15)   in Section 92, 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 if at least one member of the association of persons is a company, the share of such company or companies shall be excluded for the purpose of computing the total income of the association of persons and the company or the companies shall be taxed separately, at the rate applicable to the companies, according to their share.”;

(16)   in Section 100B, in sub-section (2), for clause (d), the following clause shall be substituted, namely:—

          “(d) a company, in respect of debt securities only; and”;

(17)   after Section 100B, amended as aforesaid, the following new section shall be inserted, namely:—

          “100C. Tax credit for certain persons.—(1) Non-profit organizations, trusts or welfare institutions, as mentioned in sub-section (2) shall be allowed a tax credit equal to one hundred per cent of the tax payable, including minimum tax and final taxes payable under any of the provisions of this Ordinance, subject to the following conditions, namely:—

          (a)      return has been filed;

                   (b)        tax required to be deducted or collected has been deducted or collected and paid; and

                   (c)        withholding tax statements for the immediately preceding tax year have been filed.

          (2)  Persons eligible for tax credit under this section include—

                   (a)        any income of a trust or welfare institution or non-profit organization from donations, voluntary contributions, subscriptions, house property, investments in the securities of the Federal Government and so much of the income chargeable under the head “income from business” as is expended in Pakistan for the purposes of carrying out welfare activities:

                               Provided that in the case of income under the head “income from business”, the exemption in respect of income under the said head shall not exceed an amount which bears to the income, under the said head, the same proportion as the said amount bears to the aggregate of the incomes from the aforesaid sources of income.

                   (b)        a trust administered under a scheme approved by the Federal Government in this behalf and established in Pakistan exclusively for the purposes of carrying out such activities as are for the benefit and welfare of—

                   (i) ex-servicemen and serving personnel, including civilian employees of the Armed Forces, and their dependents; or

                   (ii)            ex-employees and serving personnel of the Federal Government or a Provincial Government and their dependents, where the said trust is administered by a committee nominated by the Federal Government or, as the case may be, a Provincial Government;

                   (c)        a trust or welfare institution or non-profit organization approved by Chief Commissioner for the purposes of this sub-clause;

                   (d)       income of a university or other educational institution being run by a non-profit organization existing solely for educational purposes and not for purposes of profit;

                   (e)        any income which is derived from investments in securities of the Federal Government, profit on debt from scheduled banks, grant received from Federal Government or Provincial Government or District Governments, foreign grants and house property held under trust or other legal obligations wholly, or in part only, for religious or charitable purposes and is actually applied or finally set apart for application thereto:

                               Provided that nothing in this clause shall apply to so much of the income as is not expended within Pakistan:

                               Provided further that if any sum out of the amount so set apart is expended outside Pakistan, it shall be included in the total income of the tax year in which it is so expended or of the year in which it was set apart, whichever is the greater, and the provisions of Section 122 shall not apply to any assessment made or to be made in pursuance of this proviso.

                               Explanation.—Notwithstanding anything contained in the Mussalman Wakf Validating Act, 1913 (VI of 1913), or any other law for the time being in force or in the instrument relating to the trust or the institution, if any amount is set apart, expended or disbursed for the maintenance and support wholly or partially of the family, children or descendents of the author of the trust or the donor or, the maker of the institution or for his own maintenance and support during his life time or payment to himself or his family, children, relations or descendents or for the payment of his or their debts out of the income from house property dedicated, or if any expenditure is made other than for charitable purposes, in each case such expenditure, provision, setting apart,, payment or disbursement shall not be deemed, for the purposes of this clause, to be for religious or charitable purposes; or

                   (f)        any income of a religious or charitable institution derived from voluntary contributions applicable solely to religious or charitable purposes of the institution:

                               Provided that nothing contained in this clause shall apply to the income of a private religious trust which does not ensure for the benefit of the public”;

(18)   in Section 113,—

                   (i)         in sub-section (1), for the words “equal to one per cent of the person’s turnover for the year”, the words “the amount of minimum tax computed on the basis of rates as specified in Division IX of Part I of First Schedule” shall be substituted; and

                   (ii)        in sub-section (2), in clause (b), for the words “an amount equal to one per cent of the person’s turnover for the year”, the words “minimum tax computed on the basis of rates as specified in Division IX of Part I of First Schedule” shall be substituted;

(19)   after Section 113B, the following new Section 113C shall be inserted, namely:—

          “113C. Alternative Corporate Tax.–(1) Notwithstanding anything contained in this Ordinance, for tax year 2014 and onwards, tax payable by a company shall be higher of the Corporate Tax or Alternative Corporate Tax.

          (2)     For the purposes of this section.—

                   (a) “Accounting Income” means the accounting profit before tax for the tax year, as disclosed in the financial statements or as adjusted under sub-section (7) or sub-section (11) excluding share from the associate recognized under equity method of accounting;

                   (b)            “Alternative Corporate Tax” means the tax at a rate of seventeen per cent of a sum equal to accounting income less the amounts, as specified in sub-section (8), and determined in accordance with provisions of sub-section (7) hereinafter;

                   (c) “Corporate Tax” means total tax payable by the company, including tax payable on account of minimum tax and final taxes payable, under any of the provisions of this Ordinance but not including those mentioned in sections 8, 161 and 162 and any amount charged or paid on account of default surcharge or penalty and the tax payable under this section.

(3)     The sum equal to accounting income, less any amount to be excluded therefrom under sub-section (8), shall be treated as taxable income for the purpose of this section.

(4)     The excess of Alternative Corporate Tax paid over the Corporate Tax payable for the tax year shall be carried forward and adjusted against the tax payable under Division II of Part I of the First Schedule, for following year.

(5)     If the excess tax, as mentioned in sub-section (4), is not wholly adjusted, the amount not adjusted shall be carried forward to the following tax year and adjusted as specified in sub-section (4) in that year, and so on, but the said excess cannot be carried forward to more than ten tax years immediately succeeding the tax year for which the excess was first computed.

Explanation.—For the purpose of this sub-section the mechanism for adjustment of excess of Alternative Corporate Tax over Corporate Tax, specified in this section, shall not prejudice or affect the entitlement of the taxpayer regarding carrying forward and adjustment of minimum tax referred to in Section 113 of this Ordinance.

(6)     If Corporate Tax or Alternative Corporate Tax is enhanced or reduced as a result of any amendment, or as a result of any order under the Ordinance, the excess amount to be carried forward shall be reduced or enhanced accordingly.

(7)     For the purposes of determining the “Accounting Income”, expenses shall be apportioned between the amount to be excluded from accounting income under sub-section (8) and the amount to be treated as taxable income under sub-section (3).

(8)     The following amounts shall be excluded from accounting income for the purposes of computing Alternative Corporate Tax:—

(i)      exempt income;

(ii)     income subject to tax under Section 37A and final tax chargeable under sub-section (7) of Section 148, Section 150, sub-section (3) of Section 153, sub-section (4) of sections 154, 156 and sub-section (3) of Section 233;

(iii)    income subject to tax credit under Section 65D and 65E;

(iv)    income subject to tax credit under Section 100C; and

(v)     income of the company subject to clause (18A) of Part-II of the Second Schedule;

(9)     The provisions of this section shall not apply to taxpayers chargeable to tax in accordance with the provisions contained in the Fourth, Fifth and Seventh Schedules.

(10)   Tax credit under Section 65B shall be allowed against Alternative Corporate Tax.

(11)   The Commissioner may make adjustments and proceed to compute accounting income as per historical accounting pattern after providing an opportunity of being heard.”;

(20)   in Section 114, in sub-section (1), in clause (b), in sub-clause (ix), after the word “is” the words “a resident person” shall be inserted;

(21)   in Section 122B, in the heading and in sub-sections (1) and (2), for the words ‘Regional Commissioner”, wherever occurring, the words “Chief Commissioner” shall be substituted.

(22)   in Section 127,—

                   (a)        for the words “taxation officer”, the words “Officer of Inland Revenue” shall be substituted;

                   (b)        in sub-section (2), in clause (b), for the word “again”, the word “against” shall be substituted;

(23)   in Section 130, in sub-section (4),—

                   (i)         in clause (b), the word “or”, occurring at the end, shall be omitted;

                   (ii)        in clause (c), for the full stop, at the end, a semicolon and the word “or” shall be substituted and thereafter the following new clause shall be added, namely:—

                   “(d) a person who has, for a period of not less than ten years, practiced professionally as a cost and management accountant within the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966).”;

(24)   in Section 148,—

(a)     in sub-section (7), in clause (d),—

                   (i)         in sub-clause (viii), for the words “with Sales Tax Department” the expression “under the Sales Tax Act, 1990″shall be substituted;

                   (ii)        in sub-clause (ix), for the words, “for sales tax purposes” the expression “under the Sales Tax Act, 1990” shall be substituted; and

(b)     after sub-section (8), the following new sub-section shall be inserted, namely:—

          “(8A) The tax collected under this section at the time of import of ships by ship-breakers shall be final tax.”;

(25)   in Section 149, after sub-section (2), the following new sub-sections shall be added, namely:—

          “(3) Notwithstanding anything contained in sub-sections (1) and (2), every person responsible for making payment for directorship fee or fee for attending board meeting or such fee by whatever name called, shall at the time of payment, deduct tax at the rate of twenty percent of the gross amount payable .

          (4) Tax deductible under sub-section (3) shall be adjustable.”;

(26)   in Section 150, for the expression “Division III of Part I” the expression “Division I of Part III” shall be substituted;

(27)   in Section 151,

(a)      in sub-section (1), after the word “Division” for the figure “I” the figure “IA” shall be substituted; and

(b)     in sub-section (3), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

          “Provided that in the case of a non-filer other than a company the final tax shall be equal to the tax deductible in the case of filer and the tax deducted in excess of that shall be advance income tax adjustable against tax liability.”;

(28)   in Section 153, in sub-section (1), in clause (c),—

                   (i)         after the word and comma “contract,”, the words “including contract signed by a sportsperson” shall be inserted; and

                   (ii)        for the words “other than” ,the words “but not including” shall be substituted;

(29)   in Section 156, in sub-section (3), after the word “under”, occurring for the second time, the word and hyphen “sub-” shall be inserted;

(30)   in Section 159,—

                   (i)         in sub-section (1), in clause (b), for the comma, a semicolon and the word”; or” shall be substituted and thereafter the following new clause shall be added, namely:—

                               “(c) is subject to hundred per cent tax credit under Section 100C,”;

                   (ii)        in sub-section (4), for the word “one”, the word “on” shall be substituted;

(31)   in Section 169, in sub-section (1), in clause (b), for the word “of”, occurring for the eighth time, the word “or” shall be substituted;

(32)   after Section 181A , the following new section shall be inserted, namely:—

          “181AA. Compulsory registration in certain cases.—(1) Notwithstanding anything contained in any law, for the time being in force, any application for commercial or industrial connection of electricity or natural gas, shall not be processed and such connection shall not be provided unless the person applying for electricity or gas connection is registered under Section 181.”;

(33)   in Section 203, 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 the Federal Government may, by notification in official Gazette, declare that a Special Judge appointed under Section 185 of the Customs Act 1969 (IV of 1969) shall have jurisdiction to try offences under this Ordinance.”;

(34)   for Section 23 IB, the following shall be substituted, namely:—

          ”231B. Advance tax on private motor vehicles.—(1) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of registration of a motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule.

                   (2)        Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of transfer of registration or ownership of a private motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule:

                               Provided that no collection of advance tax under this sub-section shall be made on transfer of vehicles after five years from the date of first registration in Pakistan.

                   (3)        Every manufacturer of a motor car or jeep shall collect, at the time of sale of a motor car or jeep, advance tax at the rate specified in Division VII of Part IV of the First Schedule from the person to whom such sale is made.

                   (4)        Sub-section (1) shall not apply if a person produces evidence that tax under sub-section (3) in case of a locally manufactured vehicle or tax under Section 148 in the case of imported vehicle was collected from the same person in respect of the same vehicle.

                   (5)        The advance tax collected under this section shall be adjustable:

                               Provided that the provisions of this section shall not be applicable in the case of—

                   (a) the Federal Government;

                   (b)            a Provincial Government;

                   (c) a Local Government;

                   (d)            a foreign diplomat; or

                   (e) a diplomatic mission in Pakistan.”;

(35)   after Section 235, the following new sections shall be inserted, namely:—

          “235A. Domestic electricity consumption.–(1) There shall be collected advance tax at the rates specified in Division XIX of Part IV of the First Schedule on the amount of electricity bill of a domestic consumer.

                   (2)        The person preparing electricity consumption bill shall charge advance tax under sub-section (1) in the manner electricity consumption charges are charged.

                   (3)        Tax collected under this section shall be adjustable against tax liability.

          235B. Tax on steel melters, re-rollers etc.—(1) There shall be collected tax from every steel melter, steel re-roller, composite steel units, registered for the purpose of Chapter XI of Sales Tax Special Procedure Rules, 2007 at the rate of one rupee per unit of electricity consumed for the production of steel billets, ingots and mild steel (MS products) excluding stainless steel.

                   (2)        The person preparing electricity consumption bill shall charge and collect the tax under sub-section (1) in the manner electricity consumption charges are charged and collected.

                   (3)        The tax collected under sub- section (1) shall be deemed to be the tax required to be deducted under sub-section (1) of Section 153, on the payment for local purchase of scrap.

                   (4)        Tax collected under sub-section (1) shall be non-adjustable and credit of the same shall not be allowed to any person.”;

(36)   in Section 236B,—

                   (a)        in sub-section (2), for the words “person preparing” the words “airline issuing” shall be substituted;

                   (b)        after sub-section (2), amended as aforesaid, the following new sub-section shall be inserted, namely,—

          “(2A) The mode, manner and time of collection shall be as may be prescribed.”;

(37)   after Section 236J, the following new sections shall be inserted, namely:—

          “236K. Advance tax on purchase or transfer of immovable property.—(1) Any person responsible for registering or attesting transfer of any immovable property shall at the time of registering or attesting the transfer shall collect from the purchaser or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.

                   (2)        The advance tax collected under sub-section (1) shall be adjustable.

                   (3)        The advance tax under this section shall not be collected in the case of the Federal Government, a Provincial Government, a Local Government or a foreign diplomatic mission in Pakistan.

                   (4)        Nothing contained in this section shall apply to a scheme introduced by the Federal Government, or a Provincial Government or an Authority established under a Federal or Provincial law for expatriate Pakistanis.

          236L. Advance tax on purchase of international air ticket.—(1) Every airline, issuing ticket for journey originating from Pakistan, shall collect advance tax at the rates specified in Division XX of Part IV of the First Schedule, on the gross amount of international air tickets issued to passengers booking one-way or return, from Pakistan.

                   (2)        The airline issuing air ticket shall collect or charge advance tax under sub-section (1) in the manner air ticket charges are collected or charged, either manually or electronically.

                   (3)        The mode, manner and time of collection under sub-section (1) shall be as may be prescribed.

                   (4)        The advance tax collected under sub-section (1) shall be adjustable.

          236M. Bonus shares issued by companies quoted on stock exchange.—(1) Notwithstanding anything contained in any law for the time being in force, every company, quoted on stock exchange, issuing bonus shares to the shareholders of the company, shall withhold five per cent of the bonus shares to be issued.

                   (2)        Bonus shares withheld under sub-section (1) shall only be issued to a shareholder, if the company collects from the shareholder, tax equal to five per cent of the value of the bonus shares issued to the shareholder including bonus shares withheld, determined on the basis of day-end price on the first day of closure of books.

                   (3)        Tax under sub-section (2), shall be collected by the company, within fifteen days of the first day of closure of books.

                   (4)        If the shareholder fails to make the payment of tax under sub-section (2) within fifteen days or the company fails to collect the said tax within fifteen days, the company shall deposit the bonus share withheld under sub-section (1) in the Central Depository Company of Pakistan Limited or any other entity as may be prescribed.

                   (5)        Bonus shares deposited in the Central Depository Company of Pakistan Limited or the entity prescribed under sub-section (4) shall be disposed of in the mode and manner as may be prescribed and the proceeds thereof shall be paid to the Commissioner, by way of credit to the Federal Government.

                   (6)        Issuance of bonus shares shall be deemed to be the income of the shareholder and the tax collected by the company under sub-section (2) or proceeds of the bonus shares disposed of and paid under sub-section (5) shall be treated to have been paid on behalf of the shareholder.

                   (7)        Tax paid under this section shall be a final tax on the income of the shareholder of the company arising from issuance of bonus shares.

          236N. Bonus shares issued by companies not quoted on stock exchange.—(1) Notwithstanding anything contained in any law for the time being in force, every company, not quoted on stock exchange, issuing bonus shares to the shareholders of the company, shall deposit tax, within fifteen days of the closure of books, at the rate of five per cent of the value of the bonus shares on the first day of closure of books, whether or not tax has been collected by the company under sub-section (3).

                   (2)        Issuance of bonus shares shall be deemed to be the income of the shareholder and tax deposited under sub-section (1) shall be treated to have been deposited on behalf of the shareholder.

                   (3)        A company liable to deposit tax under sub-section (1), shall be entitled to collect and recover the tax deposited under sub-section (1), from the shareholder, on whose behalf the tax has been deposited, before the issuance of bonus shares.

                   (4)        If a shareholder neither makes payment of tax to the company nor collects its bonus shares, within three months of the date of issuance of bonus shares, the company may proceed to dispose of its bonus shares to the extent it has paid tax on its behalf under sub-section (1).

                   (5)        Tax paid under this section shall be a final tax on the income of the shareholder of the company arising from issuance of bonus shares.

                   (6)        The Board may prescribe rules for determination of value of shares under sub-section (1).

(38)   in Section 239, in sub-section (13), for the words and comma, “amended, modified”, the words and comma “amend, modify” shall be substituted;

(39)   in the FIRST SCHEDULE,—

          (I)      in Part I,—

                   (A) in Division I,—

                   (i) after paragraph (1 A), the following new paragraph shall be inserted, namely:—

                               “(IB) Where the taxable income in a tax year, other than income on which the deduction of tax is final, does not exceed one million rupees of a person—

                   (i) holding a National Database Registration Authority’s Computerized National Identity Card for disabled persons; or

                   (ii)            a taxpayer of the age of not less than sixty years on the first day of that tax year, the tax liability on such income shall be reduced by 50%.”;

                   (ii)            paragraph (2) shall be omitted.

                               (B) in Division II, in clause (i), in the proviso for full stop at the end a colon shall be substituted and thereafter the following new proviso shall be added, namely:–

                               “Provided further that the rate of tax imposed on the taxable income of a company, other than a banking company shall be 33% for the tax year 2015”;

                               (C) For Division III, the following shall be substituted, namely:—

“Division III

Rate of Dividend Tax

The rate of tax imposed under Section 5 on dividend received from a company shall be—

(a)      7.5% in the case of dividends declared or distributed by purchaser of a power project privatized by WAPDA or on shares of a company set up for power generation or on shares of a company, supplying coal exclusively to power generation projects; and

(b)     10%, in all other cases:

          Provided that the dividend received by a person from a stock fund shall be taxed at the rate of 12.5% for tax year 2015 and onwards, if dividend receipts are less than capital gains:

          Provided further that the dividend received by a company from a collective investment scheme or a mutual fund, other than a stock fund, shall be taxed at the rate of 25% for tax year 2015 and onwards.”;

(D)    in Division-VII, for the Table, the following shall be substituted, namely:—

“TABLE

S.No. Period Tax year Rate of tax
(1) (2) (3) (4)
1. Where holding period of a security is less than six months. 2011
2012
2013
2014
10%
10%
10%
10%
2. Where holding period of a security is more than six months but less than twelve months. 2011
2012
2013
2014
7.5%
8%
8%
8%

TAX YEAR 2015

3. Where holding period of a security is less than twelve months. 12.5%
4. Where holding period of a security is twelve months or more but less than twenty-four months. 10%
5. Where holding period of a security is twenty-four months or more.” 0%

Provided that the rate for companies shall be as specified in Division II of Part I of First Schedule, in respect of debt securities;

(E)     in Division VIII, in the TABLE, after S.No 2, the following new S.No and corresponding entries relating thereto in columns (2) and (3), shall be added, namely:–

                   “3.        Where holding period of
immovable property is more    0%
than two years.”;

(F)     after Division VIII, amended as aforesaid, the following new Division shall be added, namely.—

“Division IX

Minimum tax under Section 113

S.No. Persons(s) Minimum Tax as percentage of the person’s turnover for the year
(1) (2) (3)
1. (a)        Oil marketing companies, Oil refineries, Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited ( for the cases where annual turnover exceeds rupees one billion.);

(b)        Pakistani Airlines; and

(c)        Poultry industry including poultry breeding, broiler production, egg production and poultry feed production.

0.5%
2. (a)        Distributors of pharmaceutical products, consumer goods including fast moving consumer goods fertilizers and cigarettes;

(b)        Petroleum agents and distributors who are registered under the Sales Tax Act, 1990;

(c)        Rice mills and dealers; and

(d)       Flour mills.

0.2%
3. Motorcycle dealers registered under the Sales Tax Act, 1990. 0.25%
4. In all other cases. 1%”

(II)    for Part II, the following shall be substituted, namely:—

“PART-II

RATES OF ADVANCE TAX

[See Division II of Part V of Chapter X]

The rate of advance tax to be collected by the Collector of Customs under Section 148 shall be—

S.No. Persons Rate
(1) (2) (3)
1. (i)         Industrial undertaking importing remeltablesteel (PCT Heading 72.04) and directly reduced iron for its own use;

(ii)        Persons importing potassic fertilizers in pursuance of Economic Coordination Committee of the cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004;

(iii)       Persons importing urea; and

(iv)       Manufacturers covered under Notification No. S.R.O. 1125(I)/2011 dated the 31sl December, 2011 dated the 31st December, 2011.

1 % of import value as increased by customs-duty, sales tax and federal excise duty
2. Persons importing pulses 2% of import value as increased by customs-duty, sales tax and Federal excise duty
3. Commercial importers covered under Notification No. S.R.O. 1125(I)/2011 dated the 31st December, 2011. 3% of import value as increased by customs-duty, sales tax and federal excise duty
4. Ship breakers on import of ships 4.5%
5. Industrial undertakings not covered under S. Nos. 1 to 4 5.5%
6. Companies not covered under S. Nos. 1 to 5 5.5%
7. Persons not covered under S. Nos. 1 to 6 6%”

(III)   Part IIA shall be omitted;

(IV)   in Part III,—

                   (a)        for Division 1, the following shall be substituted, namely:–

“Division I

Advance Tax on Dividend

The rate of tax to be deducted under Section 150 shall be—

(a)      7.5% in the case of dividends declared or distributed by purchaser of a power project privatized by WAPDA or on shares of a company set up for power generation or on shares of a company, supplying coal exclusively to power generation projects;

(b)     10% for filers other than mentioned in (a) above;

(c)     15% for non-filers other than mentioned in (a) above:

          Provided that the rate of tax required to be deducted by a collective investment scheme or a mutual fund shall be—

Stock Fund Money market Fund, Income Fund or any other fund
Individual 10% 10%
Company 10% 25%
AOP 10% 10%

Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be 12.5%.

Division IA

Profit on Debt

The rate of tax to be deducted under Section 151 shall be 10% of the yield or profit for filers and 15% of the yield or profit paid, for non-filers:

Provided that for a non-filer, if the yield or profit paid is rupees five hundred thousand or less, the rate shall be ten per cent”;

(b)     in Division III,—

          (A)    in paragraph (1), in sub-paragraph (b),—

                   (i) in clause (i), for the figure “3.5”, the figure “4” shall be substituted; and

                   (ii)            in clause (ii), for the figure “4”, the figure “4.5” shall be substituted;

          (B)     in paragraph (2), in sub-paragraph (ii),—

                   (i) in clause (a), for the figure “6”, the figure “8” shall be substituted; and

                   (ii)            in clause (b), for the figure “8”, the figure “10” shall be substituted;

(C)    in paragraph (3),–

                   (i)         in sub-paragraph (i), for the figure “6”, the figure “7” shall be substituted;

                   (ii)        in sub-paragraph (ii), for the figure “6.5”, the figure “7.5” shall be substituted; and

                   (iii)       after sub-paragraph (ii), amended as aforesaid, the following new sub-paragraph shall be added, namely:–

                               “(iii) 10% of the gross amount payable in case of sportspersons.”;

(c)      in Division IV, in paragraph (3), for the figure “0.5”, the figure “1” shall be substituted;

(d)     in Division VIA, for the figure “10”, the figure “12” shall be substituted;

(V)    in Part IV,—

                   (a)        for Division II, the following shall be substituted, namely:–

“Division II

Brokerage and Commission

The rate of collection under sub-section (1) of Section 233 shall be.—

                   (a)        7.5% of the amount of the payment, in case of advertising agents;

                   (b)        12% of the amount of payment in all other cases.”;

(b)     in Division III,—

                   (i)         for clause (3), the following shall be substituted, namely:–

                               “(3) in case of other private motor cars shall be as following,—

S.No. Engine capacity For filers For non-filer
(1) (2) (3) (4)
1. upto 1000cc Rs. 1,000 Rs.1,000
2. 1001cc to 1199cc Rs. 1,800 Rs. 3,600
3. 1200cc to 1299cc Rs. 2,000 Rs. 4,000
4. 1300cc to 1499cc Rs. 3,000 Rs. 6,000
5. 1500cc to 1599cc Rs. 4,500 Rs. 9,000
6. 1600cc to 1999cc Rs. 6,000 Rs. 12,000
7. 2000cc & above Rs. 12,000 Rs. 24,000″

(ii)     for clause (4), the following shall be substituted, namely:–

          “(4) where the motor vehicle tax is collected in lump sum,–

S.No. Engine capacity For filer For non-filer
(1) (2) (3) (4)
1. upto 1000cc Rs. 10,000 Rs. 10,000
2. 1001cc to 1199cc Rs. 18,000 Rs. 36,000
3. 1200cc to 1299cc Rs. 20,000 Rs. 40,000
4. 1300cc to 1499cc Rs. 30,000 Rs. 60,000
5. 1500cc to 1599cc Rs. 45,000 Rs. 90,000
6. 1600cc to 1999cc Rs. 60,000 Rs. 120,000
7. 2000cc and above Rs. 120,000 Rs. 240,000″

(c)      in Division V, in clause (b), for the figure “15”, the figure “14” shall be substituted;

(d)     in Division VI, after the word “withdrawn” the words and figures “for filers and 0.5% of the cash amount withdrawn, for non-filers” shall be inserted;

(e)      for Division VII, the following shall be substituted, namely:—

“Division VII

Advance tax on purchase of private motor car and jeep

The rate of tax under sub-sections (1), (2) and (3) of Section 23 1B shall be as follows:—

S.No. Engine capacity Tax for filer Tax for non-filer
(1) (2) (3) (4)
1. Upto 850cc Rs. 10,000 Rs. 10,000
2. 851cc to 1000cc Rs. 20,000 Rs. 25,000
3. 1001cc to 1300cc Rs. 30,000 Rs. 40,000
4. 1301ce to 1600cc Rs. 50,000 Rs. 100,000
5. 1601ce to 1800cc Rs. 75,000 Rs. 150,000
6. 1801cc to 2000cc Rs. 100,000 Rs. 200,000
7. 2001cc to 2500cc Rs. 150,000 Rs. 300,000
8. 2501cc to 3000cc Rs.200,000 Rs. 400,000
9. Above 3000cc Rs.250,000 Rs. 450,000″

Provided that the rate of tax to be collected under sub-section (2) of Section 231-B, shall be reduced by 10% each year from the date of first registration in Pakistan.;

(f)      in Division X, after the word “received” the words and figures “for filers and 1% of the gross amount of the consideration received for non-filers.” shall be added;

(g)     in Division XI, for the figure “10” the figure “5” shall be substituted;

(ga)    for Division XIV, the following shall be substituted, namely:—

“Division XIV

Advance tax on sale to distributors, dealers or wholesalers.

The rate of collection of tax under Section 236G shall be as follows:–

Category of Sale Rate of Tax
Filer Non-Filer
Fertilizers 0.2% 0.4%
Other than fertilizers 0.1% 0.2%”;

(h)     after Division XVII, the following new Divisions shall be added, namely:–

“Division XVIII

Advance tax on purchase of immovable property

The rate of tax to be collected under Section 236K shall be:–

S.No. Period Rate of Tax
(1) (2) (3)
1. Where value of Immovable property is up to 3 million. 0%
2. Where the value of Immovable property is more than 3 million Filer 1%
Non-Filer 2%

Provided that the rate of tax for Non-Filer shall be 1% upto the date appointed by the Board through notification in official gazette.

Division XIX

Advance tax on domestic electricity consumption

The rate of tax to be collected under Section 235-A shall be–

(i)      7.5% if the amount of monthly bill is Rs.100,000 or more; and

(ii)     0% the amount of monthly bill is less than Rs. 100,000.

Division XX

Advance tax on international air ticket

The rate of tax to be collected under Section 23 6L shall be:–

S.No. Type of Ticket Rate
(1) (2) (3)
1. Economy 0%
2. Other than economy 4%”;

(40)   in the SECOND SCHEDULE,—

          (I)      in Part I—

                   (a) in clause (4), in sub-clause (b) for the words “income year”, the words “tax year” shall be substituted;

                   (b)            clause (35) shall be omitted;

                   (c) in clause (57), in sub-clause (3), after paragraph (xii), the following new paragraph shall be added, namely,—

                        “(xiii) Sindh Province Pension Fund established under the Sindh Province Pension Fund Ordinance, 2002.”;

                   (d)            clauses (58), (58A), (59) and (60) shall be omitted;

                   (e) in clause (66),—

                        (i) sub-clause (v) shall be omitted;

                        (ii) clause (xxiv), occurring for the second time, clause (xxv), clause (xxvii), clause (xxviii), occurring thrice and clause (xxix) shall be re-numbered as clauses (xxv), (xxvi), (xxvii), (xxviii), (xxix), (xxx) and (xxxi) respectively;

                        (iii) after sub-clause (xxxi), re-numbered as aforesaid, the following new sub-clause shall be added, namely:—

                        “(xxx) Greenstar Social Marketing Pakistan (Guarantee) Limited.”;

(f)      clauses (81 A), (88A), (92A) and (93A) shall be omitted;

(g)     in clause (99), for the full stop, at the end, a colon shall be substituted and thereafter, the following proviso shall be added, namely:–

          “Provided that for the purpose of determining distribution of at least 90% of accounting income, the income distributed through bonus shares, units or certificates as the case may be, shall not be taken into account.”;

(h)     for clause (126), the following shall be substituted, namely:—

          “(126) Any income of a public sector university established solely for educational purposes and not for the purposes of profit, with effect from the 1st day of July, 2013.”;

(i)      for clause (126A) the following shall be substituted, namely:–

          “(126A) income derived by China Overseas Ports Holding Company Limited from Gwadar Port operations for a period of twenty years, with effect from the sixth day of February, 2007.”;

(j)      after clause (126G), the following new clause shall be inserted, namely:—

          “(126H) Profits and gains derived by a taxpayer, from a fruit processing or preservation unit set up in Balochistan Province, Malakand Division, Gilgit-Baltistan and FATA between the first day of July, 2014 to the thirtieth day of June, 2017, both days inclusive, engaged in processing of locally grown fruits, for a period of five years beginning with the month in which the industrial undertaking is set up or commercial production is commenced, whichever is later.”;

(k)     after clause (132A), the following new clause shall be inserted, namely:–

          “(132B) Profits and gains derived by a taxpayer from a coal mining project in Sindh, supplying coal exclusively to power generation projects.”; and

(I)      clause (135) shall be omitted;

(II) in Part II,–

          (a)      in clause (3),—

                   (i) after the word, “rendered” the words “and construction contracts” shall be inserted;

                   (ii)            for the words, “such receipts” the words “receipts from services and income from contracts” shall be substituted; and

                   (b)        clauses (3A), (9B), (9C), (13E), (13HH), (13HHH) and (17) shall be omitted;

                   (c)        in clause (14B), for the full stop at the end a colon shall be substituted and thereafter the following new provisos shall be added, namely:–

                               “Provided that owners of the passenger transport vehicles may pay tax for the period 1st day of July, 2012 to 30th day of June, 2013 at the rates under this clause, if the tax is paid by the 30th day of June, 2014:

                               Provided further that the tax already paid from 1st day of July, 2012, as per rates specified in Division III of Part IV of the First Schedule, shall not be refunded.”;

                   (d)       after clause (18), the following new clause shall be inserted, namely:—

                               “(18 A) The rate of tax as specified in Division II of Part I of the First Schedule shall be reduced to 20% for a company setting up an industrial undertaking between the first day of July, 2014 to the thirtieth day of June, 2017, for a period of five years beginning from the month in which the industrial undertaking is set up or commercial production is commenced, whichever is later:

                               Provided that fifty percent of the cost of the project including working capital is through owner equity foreign direct investment.”;

                   (e)        clauses (19), (20), (23), (24), (24B), (26), (29) and (30) shall be omitted;

(III)   in Part III—

                   (a)        in clause (1), in sub-clause (1), in paragraph (a), the word and comma “pilots,” shall be omitted;

          (b)     clause (1 A) shall be omitted;

                   (c)        after clause (1A), omitted as aforesaid, the following new clause shall be inserted, namely:-

                               “(1AA) Total allowances received by pilots of any Pakistani airlines shall be taxed at a rate of 7.5%, provided that the reduction under this clause shall be available to so much of the allowances as exceeds an amount equal to the basic pay.”; and

                   (d)       Clauses (5), (7), (8), (9), (10), (11), (12), (13), (14) and (15) shall be omitted;

(IV)   in Part IV,—

                   (a)        after clause (5), the following new clauses shall be inserted, namely:—

                               “(9A) Provisions of clause (a) of sub-section (1) of Section 153, shall not apply to steel melters, steel re-rollers, composite steel units, as a payer, in respect of purchase of scrap, provided that tax is collected in accordance with Section 235B:

                               Provided that steel melters, steel re-rollers and composite steel units may opt to pay tax in accordance with Section 23 5 B, for tax years 2012 and 2013, if tax liability for the said tax years is paid by the 30th day of June, 2014:

                               Provided further that where tax has been deducted under clause (a) of sub-section (1) of Section 153 or paid under an order under Section 161, it shall not be refundable.;

                               (9AA) Provisions of clause (a) of sub-section (1) of Section 153, shall not apply to ship breakers as recipient of payment:

                               Provided that this clause shall only apply for ships imported after the 1st July 2014.”;

          (b)     clauses (10) and (10A) shall be omitted;

                   (c)        in clause (11 A), in sub-clause (v), after the figure and brackets, “(132)” the following shall -be inserted, namely:–

                   “and clause (132B)”;

          (d)     clause (38B) shall be omitted;

                   (e)        in clause (38C), after the word, “section”, the figure and comma “150,” shall be inserted;

                   (f)        clauses (41 A), (41AA), (41AAA) and (4IB) shall be omitted;

                   (g)        after clause (56A), the following new clauses shall be inserted, namely:–

                               “(56B) 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 being a commercial importer if the person opts to file return of total income along with accounts and documents as may be prescribed, subject to the condition that minimum tax liability under normal tax regime shall not be less than 5.5%, of the imports, if the person is a company and 6% otherwise.

                               (56C) The provisions of sub-section (3) of Section 153, in respect of sale of goods and clause (a) of sub-section (1) of Section 169 shall not apply to a person, if the person opts to file return of total income along with accounts and documents as may be prescribed subject to the condition that minimum tax liability under normal tax regime shall not be less than 3.5% of the gross amount of sales, if the person is a company and 4% otherwise.

                               (56D) The provisions of sub-section (3) of Section 153, in respect of contracts and clause (a) of sub-section (1) of Section 169 shall not apply to a person if the person opts to file return of total income along with accounts and documents as may be prescribed subject to the condition that minimum tax liability under normal tax regime shall not be less than 6% of contract receipts, if the person is a company and 6.5% otherwise.

                               (56E) The provisions of sub-section (2) of Section 153 and clause (a) of sub-section (1) of Section 169 shall not apply in respect of a person if the person opts to file return of total income along with accounts and documents as may be prescribed subject to the condition that minimum tax liability under normal tax regime shall not be less than 0.5% of gross amount of services received.

                               (56F) The provisions of sub-section (2) of Section 156A and clause (a) of sub-section (1) of Section 169 shall not apply in respect of a person if the person opts to file return of total income along with accounts and documents as may be prescribed, subject to the condition that minimum tax liability under normal tax regime shall not be less than 10% of the commission or discount received.

                               (56G) The provisions of sub-section (3) of Section 233 and clause (a) of sub-section (1) of Section 169 shall not apply in respect of a person if the person opts to file return of total income along with accounts and documents as may be prescribed, subject to the condition that minimum tax liability under normal tax regime shall not be less than 10% of the commission.”;

          (h)     in clause 57,–

                   (i)         in sub-clause (vi), for the words, “with Sales Tax Department” the words, comma and figure “under the Sales Tax Act, 1990” shall be substituted;

                   (ii)        after the second proviso, the following new explanation shall be added, namely:–

                               “‘Explanation.—For the removal of doubt, exemption under this clause, in respect of Section 153, shall only be available as a recipient and not as withholding agent.”;

                   (i) after clause (72B), the following proviso shall be added, namely:—

                               “Provided that the certificate shall only be issued by the Commissioner if an application for the said certificate is filed before the Commissioner, in the manner and after fulfilling the conditions as specified by notification in the official Gazette, issued by the Board for the purpose of this clause.”

          (j)      clause (80) shall be omitted;

                   (k)        in clause (82), for the figure, “2013”, the figure “2014” shall be substituted; and

          (l)      clauses (84), (85), (87) and (88) shall be omitted.;

(41)   in the THIRD SCHEDULE, in Part II, in clause (1), for the figure “25”, occurring for the second time, the figure “15” shall be substituted; and

(42)   in the SEVENTH SCHEDULE,—

          (A)    in Rule 6,–

                   (i) for the words “income under the head “Dividend” and” the words “net income from “Dividend” and net income from” shall be substituted; and

                   (ii)            for the words “per cent”, the words “and twelve and a half, respectively'” shall be substituted; and

(B)     after Rule 6, amended as aforesaid, the following new rules shall be inserted:–

          “6A. For the purpose of Rule 6, net income from dividend shall be computed according to the following formula, namely: –

(A/C) x B

Where—

A       is the total amount of expenditure as per this Schedule;

B       is the gross amount of dividend received; and

C       is the gross amount of receipts including dividend.

6B.    For the purpose of Rule 6, net income from capital gains shall be computed according to the following formula, namely:—

(A/C) x B

Where—

A       is the total amount of expenditure as per this Schedule;

B       is the gross amount of capital gains; and

C       is the gross amount of receipts including capital gains.”.

  1. Amendments of the Federal Excise Act, 2005.—In the Federal Excise Act, 2005, the following further amendments shall be made, namely:–

(1)     in Section 12, in sub-section (4), in the proviso, for the full stop, at the end, a colon shall be substituted and thereafter, the following new proviso shall be added, namely:–

          “Provided further that the Board may through a general order specify zones or areas only for the purpose of determination of highest retail price for any brand or variety of goods.”;

(2)     in the First Schedule,—

          (a)      in Table 1, in column (1),—

                   (i)         for S. Nos. 9 and 10 and the corresponding entries relating thereto in columns (2), (3) and (4), the following shall respectively be substituted, namely:-

“9. Locally produced cigarettes if their on-pack printed retail price exceeds rupees two thousand seven hundred and six per thousand cigarettes 24.02 Rupees two thousand six hundred and thirty two per thousand cigarettes.
10. Locally produced cigarettes if their on-pack printed retail price does not exceed rupees two thousand seven hundred and six per thousand cigarettes 24.02 Rupees one thousand and eighty five per thousand cigarettes.”;

                   (ii)        against S. No. 13, in column (4), for the words “four hundred rupees per metric ton” the words “five per cent of the retail price” shall be substituted; and

                   (iii)       against S. No. 55, in column (2), for the word “Motor”, the words ‘imported motor” shall be substituted;

                   (iv)       in the heading “Restrictions” in the sub-heading “Variant at different price points” for figures and hyphen “2012-13” the words “of the current financial year” shall be substituted; and

(b)     in Table-II, in column (1),—

                   (i)         against S. No. 3, for the entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:–

“Facilities for travel 98.03
(a) Services provided or rendered in respect of travel by air of passengers within the territorial jurisdiction of Pakistan,— 9803.1000
(i)         Long routes Two thousand and five hundred rupees
(ii)        Short routes One thousand two hundred and fifty rupees
(iii)       Socio-economic routes Five hundred rupees

          Explanation.–For the purpose of this entry, “Long routes” means journeys exceeding 500 kilometers, “short routes” means the remaining journeys, other than socio-economic routes, and “socio-economic routes” means journeys along the Balochistan coastal belt. Routes exempt from duty as on 1st July, 2014 shall, however, remain exempt.

(b) services provided or rendered in respect of travel by air of passengers embarking on international journey from Pakistan,—
(i)         Economy and economy plus Five thousand rupees
(ii) Club, business and first class. Ten thousand rupees;

(ii)     against S. No. 6,—

                   (a)        in column (2), after the word “services”, the comma and words “,excluding such services in the area of a Province where such Province has imposed Provincial sales tax and has started collecting the same through its own Board or Authority, as the case may be” shall be added; and

                   (b)        in column (4), for the word “nineteen”, the word “Eighteen” shall be substituted; and

(iii)    after S. No. 14, the following new serial number and corresponding entries relating thereto in columns (2), (3) and (4) shall be added, namely:–

“15. Chartered flights 98.03 Sixteen per cent of the charges.”.
  1. Amendment of Act XXI of 2011.—In the Gas Infrastructure Development Cess Act, 2011 (XXI of 2011), the following further amendments shall be made namely:–

(1)     in Section 3, in sub-section (1), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

          “Provided that the Federal Government may decide to levy any rate of Cess on any category of gas consumers subject to maximum rate provided in the Second Schedule.”;

(2)     in the First Schedule,—

                   (a)        in entry 4, the word “and”, at the end, shall be omitted;

                   (b)        in entry 5, for the full stop, at the end, a semi colon and the word “and” shall be substituted and thereafter the following shall be added, namely:—

                   “6.            Oil and Gas Development Company Limited; and

  1.   Any other company engaged in sale of gas to any category of gas consumers as notified in the official gazette.”;

(3)     for the Second Schedule, the following shall be substituted, namely:—

THE SECOND SCHEDULE

[See Section 3]

S. No. Sector Maximum Rate of Cess (Rs/MMBTU)
(1) (2) (3)
1. Fertilizer – Feed Stock 300
2. Compressed Natural Gas (CNG) 300
3. Industrial including Fertilizer Fuel Stock 150
4. Captive Power 200
5. WAPDA/ KESC/GENCOs 100
6. Independent Power Plants (IPPs) 100
7. Commercial including Ice Factories
8. Cement
9. Liberty Power Plant
10. Domestic
  1. Repeal of Income Support Levy Act of 2013. The Income Support Levy Act, 2013 is hereby repealed.

The Schedule, seet at Gazette of Pakistan at pp. 169 to 245.

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