SS HEADMASTER/HEADMISTRESS JOBS IN PUNJAB 2015 output_ehG634 CTI JOBS IN PUNJAB cti jOBS

Federal Budget 2015-16 Detail in English

Federal Budget 2015-16 Detail in English

1
A
BILL
to give effect to the financial proposals of the Federal Government for the year
beginning on the first day of July, 2015, and to amend certain laws
WHEREAS it is expedient to make provisions to give effect to the financial
proposals of the Federal Government for the year beginning on the first day of July,
2015, and to amend certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:-
1. Short title, extent and commencement. ─ (1) This Act may be called the
Finance Act, 2015.
(2) It extends to the whole of Pakistan.
(3) It shall, unless otherwise provided, come into force on the first day of July,
2015.
2. Amendments of Act IV of 1969. ─ In the Customs Act, 1969 (IV of 1969), the
following further amendments shall be made, namely:-
(1) in section 19,-
(a) for sub-section (1), the following shall be substituted, namely:-
“(1) The Federal Government pursuant to the approval of the
Economic Coordination Committee of Cabinet, whenever
circumstances exist to take immediate action for the purposes of
national security, natural disaster, national food security in the
emergency situations, protection of national economic interests in
situations arising out of abnormal fluctuation in international
2
commodity prices, removal of anomalies in duties, development of
backward areas and implementation of bilateral and multilateral
agreements, subject to such conditions, limitations or restrictions, if
any, as it thinks fit to impose, may, by notification in the official
Gazette, exempt any goods imported into, or exported from,
Pakistan or into or from any specified port or station or area therein,
from the whole or any part of the customs-duties chargeable
thereon and may remit fine, penalty, charge or any other amount
recoverable under this Act.”; and
(b) after sub-section (3), the following new sub-sections shall be
added, namely:-
“(4) The Federal Government shall place before the National
Assembly all notifications issued under this section in a financial
year.
(5) Any notification issued after the promulgation of the Finance
Act, 2015 under sub-section (1) shall, if not earlier rescinded, stand
rescinded on the expiry of the financial year in which it was
issued.”;
(2) section 20 shall be omitted;
(3) in section 32, in sub-section (3), in the proviso, for the words “one
hundred”, the words “twenty thousand” shall be substituted;
(4) in section 79, in sub-section (1),-
3
(a) after the word “warehousing”, the words “or transhipment” shall be
inserted; and
(b) in clause (b), after the second proviso, the following Explanation
shall be added, namely:-
“Explanation.- For the purposes of this clause, the assessment and
paying of duty, taxes and other charges in respect of transhipment
shall be at the port of destination.”;
(5) in section 121, in sub-section (1), for the full stop at the end, a colon shall
be substituted and thereafter the following proviso shall be added,
namely:-
“Provided that at customs-station where the Customs
Computerized System is operational, the system may automatically
authorize transhipment to other customs-station subject to risk selectivity
criteria.”;
(6) in section 123, after sub-section (2), the following shall be added, namely:-
“Explanation.- For the purpose of transhipment of LCL goods, the
customs-station of first entry shall be the customs-station where the goods
are de-consolidated.”;
(7) in section 156, in sub-section (1), in the Table,-
(a) S.No.1 shall be re-numbered as S.No.1(i) of that Table and
thereafter the following new clause and the entries relating thereto
in columns (1), (2) and (3) shall be added, namely:-
“(ii) If any person such person shall General”; and
4
contravenes the
requirement of
placement of
invoice and
packing list inside
the import
container or
consignment,
be liable to a
penalty not
exceeding fifty
thousand rupees.
(b) against serial number 64, in column (1), for the existing entry, the
following shall be substituted:-
“If any person contravenes any rule or condition relating to section
128 or section 129, or makes an untrue declaration relating to
transit goods or illegally removes or conceals any transit goods,”;
(8) the amendments set out in the First Schedule to this Act shall be made in
the First Schedule to the Customs Act, 1969 (IV of 1969); and
(9) the Fifth Schedule to the Customs Act, 1969 (IV of 1969), shall be
substituted in the manner specified in the Second Schedule of this Act.
3. Amendments of the Sales Tax Act, 1990. ─.In the Sales Tax Act, 1990, the
following further amendments shall be made, namely:-
(1) in section 2,–
(a) for clause (1), the following shall be substituted, namely:–
“(1) “active taxpayer” means a registered person who does not
fall in any of the following categories, namely:-
5
(a) who is blacklisted or whose registration is suspended
or is blocked in terms of section 21;
(b) who fails to file the return under section 26 by the due
date for two consecutive tax periods;
(c) who fails to file an Income Tax return under section
114 or statement under section 115, of the Income
Tax Ordinance, 2001(XLlX of 2001), by the due date;
and
(d) who fails to file two consecutive monthly or an annual
withholding tax statement under section 165 of the
Income Tax Ordinance, 2001;
(1A) “Appellate Tribunal” means the Appellate Tribunal Inland
Revenue established under section 130 of the Income Tax
Ordinance, 2001 (XLIX of 2001);”;
(b) in clause (5AB), for the word “seven”, the word “eight” shall be
substituted;
(c) in clause (28), the comma, words and figures “, and his total
turnover per annum shall be taken into account for the purposes of
registration under section 14” shall be omitted; and
(d) in clause (33),-
(a) in sub-clause (b), the word “and” at the end shall be omitted;
and
6
(b) in sub-clause (c), for the colon at the end, a semi-colon and
the word “and” shall be substituted, and thereafter the
following new clause shall be added, namely:-
“(d) in case of manufacture of goods belonging to another
person, the transfer or delivery of such goods to the
owner or to a person nominated by him:”;
(e) after clause (46), the following new clause shall be added, namely:-
“(46A) “whistleblower” means whistleblower as defined in section
72D of the Sales Tax Act, 1990”;
(2) in section 3,–
(a) in sub-section (1A), for the word “one”, the word “two” shall be
substituted; and
(b) in sub-section (2), for clause (b), the following shall be substituted,
namely:–
“(b) the Federal Government may, subject to such conditions and
restrictions as it may impose, by notification in the official
Gazette, declare that in respect of any taxable goods, the tax
shall be charged, collected and paid in such manner and at
such higher or lower rate or rates as may be specified in the
said notification.”;
(3) in section 6, in sub-section (1), after the word “enforcement”, the words
“including recovery” shall be inserted;
7
(4) in section 7, in sub-section (2), in clause (ii), after the figure “79”, the
expression “, section 81” shall be inserted;
(5) in section 8, in sub-section (1),–
(a) in clause (h),
(a) after the word “excluding”, the words “pre-fabricated
buildings and” shall be inserted; and
(b) the word “and” at the end shall be omitted;
(b) in clause (i), for the full stop at the end a semi-colon shall be
substituted and thereafter the following new clauses shall be
added, namely:–
“(j) services in respect of which input tax adjustment is barred
under the respective provincial sales tax law;
(k) import or purchase of agricultural machinery or equipment
subject to sales tax at the rate of 7% under Eighth Schedule
to this Act; and
(l) from the date to be notified by the Board, such goods and
services which, at the time of filing of return by the buyer,
have not been declared by the supplier in his return.”;
(6) in section 8A, after the word “unpaid”, occurring for the first time, the
expression “, of which the burden to prove shall be on the department”
shall be inserted;
(7) in section 13,–
(a) in sub-section (2),–
8
(i) in clause (a), after the word “may”, the commas and the
words “, pursuant to the approval of the Economic
Coordination Committee of Cabinet, whenever
circumstances exist to take immediate action for the
purposes of national security, natural disaster, national food
security in emergency situations, protection of national
economic interests in situations arising out of abnormal
fluctuation in international commodity prices, removal of
anomalies in taxes, development of backward areas and
implementation of bilateral and multilateral agreements” shall
be inserted and thereafter the word “and” at the end shall be
omitted; and
(ii) clause (b) shall be omitted;
(b) in sub-section (3), the expression “or, as the case may be, order
made under clause (b) of that sub-section” shall be omitted;
(c) after already omitted sub-section (5), the following new subsections
shall be added, namely:–
“(6) The Federal Government shall place before the
National Assembly all notifications issued under this section
in a financial year.
(7) Any notification issued under sub-section (2),
shall, if not earlier rescinded, stand rescinded on the expiry
of the financial year in which it was issued.”;
9
(8) for section 14, the following shall be substituted, namely:–
“14. Registration.—(1) Every person engaged in
making taxable supplies in Pakistan, including zero-rated
supplies, in the course or furtherance of any taxable activity
carried on by him, falling in any of the following categories, if
not already registered, is required to be registered under this
Act, namely:-
(a) a manufacturer who is not running a cottage
industry;
(b) a retailer who is liable to pay sales tax under
the Act or rules made thereunder, excluding
such retailer required to pay sales tax through
his electricity bill under sub-section (9) of
section 3;
(c) an importer;
(d) an exporter who intends to obtain sales tax
refund against his zero-rated supplies;
(e) a wholesaler, dealer or distributor; and
(f) a person who is required, under any other
Federal law or Provincial law, to be registered
for the purpose of any duty or tax collected or
paid as if it were a levy of sales tax to be
collected under the Act;
10
(2) Persons not engaged in making of taxable
supplies in Pakistan, if required to be registered for making
imports or exports, or under any provisions of the Act, or any
other Federal law, may apply for registration.
(3) The registration under this Act shall be
regulated in such manner as the Board may, by notification
in the official Gazette, prescribe.”;
(9) after section 21, the following new section shall be inserted, namely:-
“21A. Active taxpayers list.-The Board shall have the
power to maintain active taxpayers list in the manner as may be
prescribed by rules and such rules may provide for the restrictions
and limitations to be imposed on a person who ceases to be an
active taxpayer.”;
(10) in section 25, in sub-section (3), the words, figures and comma “or section
36, as the case may be” shall be omitted;
(11) in section 32A, –
(a) in the heading, for the words “Special Audit by Chartered
Accountants or Cost Accountants”, the words “Audit by Special
Audit Panels” shall be substituted;
(b) for sub-section (1) the following shall be substituted, namely:–
“(1) The Board may appoint as many special audit panels as
may be necessary, comprising two or more members from the
following, –
11
(a) an officer or officers of Inland Revenue;
(b) a firm of chartered accountants as defined under the
Chartered Accountants Ordinance, 1961 (X of 1961);
(c) a firm of cost and management accountants as defined
under the Cost and Management Accountants Act, 1966
(XIV of 1966); or
(d) any other person as directed by the Board,
to conduct audit of a registered person or persons, including audit
of refund claims and forensic audit and the scope of such audit
shall be determined by the Board or the Commissioner Inland
Revenue on a case-to-case basis. In addition, the Board may,
where it considers appropriate, also get such audit conducted
jointly with similar audits being conducted by provincial
administrations of sales tax on services.”;
(c) in sub-section (2), for the word “an auditor”, the words “special audit
panel” shall be substituted;
(d) in sub-section (3), for the words “An auditor”, the words “Every
member of special audit panel” shall be substituted; and
(e) after sub-section (3), amended as aforesaid, the following new subsections
shall be added, namely:–
“(4) Each special audit panel shall be headed by a
chairman who shall be an officer of Inland Revenue.
12
(5) If any one member of the special audit panel,
other than the chairman, is absent from conducting an audit,
the proceedings of the audit may continue and the audit
conducted by the special audit panel shall not be invalid or
be called in question merely on the ground of such absence.
(6) The Board may prescribe rules in respect of
constitution, procedure and working of special audit panel.”;
(12) in section 33, in the Table, in column (1), –
(a) against serial number 1, in column (2), in the proviso, for the word
“fifteen”, the word “ten” shall be substituted; and
(b) against serial number 5, in column (2), in the first proviso, for the
word “fifteen”, the word “ten” shall be substituted;
(13) in section 40C, –
(a) in sub-section (2), after the word “labels”, the word and comma
“barcodes,” shall be inserted; and
(b) after sub-section (2), amended as aforesaid, the following new subsection
shall be added, namely:-
“(3) Such tax stamps, banderoles, stickers, labels, barcodes
etc., shall be acquired by the registered person referred to in subsection
(2) from a licensee appointed by the Board for the purpose,
against price approved by the Board, which shall include the cost of
equipment installed by such licensee in the premises of the said
registered person.”;
13
(14) in section 45A, in sub-section (1), after the word “motion”, the words “, or
otherwise,” shall be inserted;
(15) after section 56, the following new sections shall be inserted, namely:-
“56A. Agreement for the exchange of information.– (1) The
Federal Government may enter into bilateral or multilateral agreements
with provincial governments or with governments of foreign countries for
the exchange of information, including electronic exchange of information,
with respect to sales tax imposed under this Act or any other law of
Pakistan and under the corresponding laws of such countries and may, by
notification in the official Gazette, make such provisions as may be
necessary for implementing such agreements.
(2) The provisions of section 107 of the Income Tax Ordinance,
2001 (XLIX of 2001) shall, mutatis mutandis, apply to the provisions of this
section.
56B. Disclosure of information by a public servant.– (1) Any
information acquired under any provision of this Act or in pursuance of a
bilateral or multilateral agreement or tax information exchange agreement
shall be confidential and no public servant shall disclose any such
information, except as provided under section 216 of the Income Tax
Ordinance, 2001 (XLIX of 2001).
(2) The provisions of section 216 of Income Tax Ordinance,
2001 (XLIX of 2001), shall, mutatis mutandis, apply to the provisions of
this section.
14
56C. Prize schemes to promote tax culture.- The Board may
prescribe prize schemes to encourage the general public to make
purchases only from registered persons issuing tax invoices.”;
(16) after section 72C, a new section 72D shall be added, namely:–
“72D. Reward to whistleblowers.– (1) The Board may sanction reward to
whistleblowers in cases of concealment or evasion of tax, tax fraud,
corruption or misconduct providing credible information leading to such
detection of tax fraud;
(2) The Board may, by notification in the official Gazette, prescribe the
procedure in this behalf and also specify the apportionment of reward
sanctioned under this section for whistleblowers;
(3) The claim for reward by the whistleblower shall be rejected if–
(a) the information provided is of no value;
(b) the Board already had the information;
(c) the information was available in public records; or
(d) no collection of taxes is made from the information provided
from which the Board can pay the reward;
(4) For the purpose of this section, “whistleblower” means a person
who reports concealment or evasion of sales tax and tax fraud leading to
detection or collection of taxes, fraud, corruption or misconduct, to the
competent authority having power to take action against the person or a
sales tax authority committing fraud, corruption, misconduct, or involved in
concealment or evasion of taxes.”;
15
(17) in the Fifth Schedule, in column (1), –
(a) against serial number 6, in column (2), the words “to the Export
Processing Zones and” shall be omitted;
(b) after serial number 6, amended as aforesaid, the following new
serial number and the entry relating thereto in column (2) shall be
inserted, namely:-
“6A. Supplies of locally manufactured plant and machinery of the
following specifications, to manufacturers in the Export
Processing Zone, subject to the conditions, restrictions and
procedure given below, namely:-
(i) Plant and machinery, operated by power of any
description, as is used for the manufacture or
production of goods by that manufacturer;
(ii) Apparatus, appliances and equipments specifically
meant or adapted for use in conjunction with the
machinery specified in clause (i);
(iii) Mechanical and electrical control and transmission
gear, meant or adapted for use in conjunction with
machinery specified in clause (i); and
(iv) Parts of machinery as specified in clauses (i), (ii) and
(iii) identifiable for use in or with such machinery.
Conditions, restrictions and procedures:-
16
(a) the supplier of the machinery is registered
under the Act;
(b) proper bill of export is filed showing registration
number;
(c) the purchaser of the machinery is an
established manufacturer located in the Export
Processing Zone and holds a certificate from
the Export Processing Zone Authority to that
effect;
(d) the purchaser submits an indemnity bond in
proper form to the satisfaction of the concerned
Commissioner Inland Revenue that the
machinery shall, without prior permission from
the said Commissioner, not be sold,
transferred or otherwise moved out of the
Export Processing Zone before a period of five
years from the date of entry into the Zone;
(e) if the machinery is brought to tariff area of
Pakistan, sales tax shall be charged on the
value assessed on the bill of entry; and
(f) breach of any of the conditions specified herein
shall attract legal action under the relevant
provisions of the Act, besides recovery of the
17
amount of sales tax along with default
surcharge and penalties involved.”;
(c) against serial number 9, in column (2), the words “who makes local
supplies of both taxable and exempt goods” shall be omitted;
(d) against serial number 12, in column (2), in clause (ix), the words
“including flavored milk” and the word and figure “and 0402.9900”
shall be omitted; and thereafter clauses (x) to (xvi) shall be omitted;
(18) in the Sixth Schedule, –
(a) in Table-1,in column (1), –
(i) against serial number 19, in column (3), the comma and
figure “1006.1010,” shall be omitted;
(ii) against serial number 20, in column (3), for the figure
“1209.1000”, the figures and comma “1006.1010,
1209.1000” shall be substituted;
(iii) serial numbers 28, 39 and 56 and entries relating thereto in
columns (2) and (3) shall be omitted;
(iv) for serial numbers 73 to 80 and the entries relating thereto in
columns (2) and (3), the following serial numbers and the
entries relating thereto shall be substituted, namely:-
“73. Milk 04.01
73A. Milk and cream, concentrated or
containing added sugar or other
sweetening matter, excluding that
04.01 and
04.02
18
sold in retail packing under a
brand name
74. Flavored milk, excluding that sold
in retail packing under a brand
name
0402.9900
75. Yogurt, excluding that sold in
retail packing under a brand
name
0403.1000
76. Whey, excluding that sold in retail
packing under a brand name
04.04
77. Butter, excluding that sold in
retail packing under a brand
name
0405.1000
78. Desi ghee, excluding that sold in
retail packing under a brand
name
0405.9000
79. Cheese, excluding that sold in
retail packing under a brand
name
0406.1010
80. Processed cheese not grated or
powdered, excluding that sold in
retail packing under a brand
name
0406.3000”;
19
(v) against serial number 105, in column (2), after the word
“Schedule”, the words “or Fifth Schedule” shall be inserted;
(vi) against serial number 114,-
(A) in column (2), in clause (1), after the word
“equipment”, the words and comma “consisting of
plastic covering and mulch film, anti-insect net and
shade net” shall be inserted; and
(B) in column (3), for the figures and comma “8430.3100,
8430.3900”, the figures and commas “3920.1000,
3926.9099, 5608.1900, 5608.9000” shall be
substituted;
(vii) after serial number 116 and the entries relating thereto in
columns (2) and (3), the following new serial numbers and
entries relating thereto in columns (1), (2) and (3) shall be
added, namely:–
“117 Appliances for colostomy 3006.9100
118 Colostomy and urostomy bags 3926.9050
119 Tubular day lighting devices
(TDDs)
8539.3930
120 Diagnostic kits or equipment,
namely:-
HIV Kits
4C Es Trionyx
3822.0000
20
5C Cell control Lnormal
Bovine precision multi sera
Pregnancy test
DNA SSP DRB Generic IC
Reticulocyte count (control) retic
C Control
Kit for vitamin B12 estimation
Ferritin kit
HEV (Hepatitis E virus)
ID-DA Cell
Urine Analysis Strips
Albumin beg
Cratinin sysi
Ring
Detektiion cups
ISE Standard
Alkaline phosphatase (Alb)
Bilirubin kit
HDL Cholesterol
Ck creatinin kinase (mb)
Ck nac
Glulcose kit
Ammonia Modular
21
Lac
Ldh kit (lactate dehydrogenase
kit)
Urea uv kit
Ua plus
Tina quant
Crp control
Aslo tin
Proteins
Lipids
HDL/LDL cholesterol
Protein kit
U
Control Sera
Pac
Control
HCV
UIBC (Unsaturated iron binding
capacity)
U/CSF
Inorganic Phosphorus kit
Kit amplicon kit (for PCR)
Ige
22
Lc hsv
Oligo
NA/K/CL
Hcy
Standard [or calibrated]
Hla B27
Liss Coombs
Typhoid kit
HCV amp
Urine test strips
Strips for sugar test
Blood glucose test strips
Kits for automatic cell separator
for collection of platelets
Elisa or Eclia kit
PCR kits
Immunoblast (western blot test).
I.C.T. (Immunochromatographic
kit)
CBC Reagent (For hematology
analyzer) Complete blood count
reagent
121 Blood Bag CPDA-1 with blood Respective
23
transfusion set pack in aluminum
foil with set.
headings
122 Urine drainage bags Respective
headings
123 Aircraft, whether imported or
acquired on wet or dry lease
8802.2000,
8802.3000,
8802.4000
124 Maintenance kits for use in
trainer aircrafts of PCT headings
8802.2000 and 8802.3000
Respective
headings
125 Spare parts for use in aircrafts,
trainer aircrafts or simulators
Respective
headings
126 Machinery, equipment and tools
for setting up maintenance,
repair and overhaul (MRO)
workshop by MRO company
recognized by Aviation Division
Respective
headings
127 Operational tools, machinery,
equipment and furniture and
fixtures on one-time basis for
setting up Greenfield airports by
a company authorized by
Aviation Division
Respective
headings
24
128 Aviation simulators imported by
airline company recognized by
Aviation Division
Respective
headings”;
(b) in Table-2, in column (1), –
(a) serial numbers 13 and 14 and entries relating thereto in
columns (2) and (3) shall be omitted;
(b) after serial number 16 and entries relating thereto in columns
(2) and (3), the following new serial numbers and entries
relating thereto in column (1), (2) and (3) shall be added,
namely;–
“17. Raw and pickled hides and skins,
wet blue hides and skins
41.01,
41.02,
41.03,
4104.1000,
4105.1000,
4106.2100,
4106.3000,
4106.9000
18. Supplies made by manufacturers of
marble and granite having annual
turnover less than five million
rupees even if their annual utility bill
is more than eight hundred
Respective
headings
25
thousand rupees
19 Bricks (up to 30th June, 2018) 6901.1000
20 Crushed stone (up to 30th June,
2018)
2517.1000”;
and
(c) in Table-3, in the Annexure, in column (1), serial numbers 10
and 16 and entries relating thereto in columns (2), (3) and
(4) shall be omitted;
(19) in the Eighth Schedule, –
(a) in Table-1, in column (1), –
(i) against serial No. 1, in column (4), for the figure “5%”, the
figure “10%” shall be substituted;
(ii) serial number 3, and entries relating thereto in columns (2),
(3), (4) and (5) shall be omitted;
(iii) against serial numbers 4 and 6, in column (4), for the figure
“5%”, the figure “10%” shall be substituted; and
(iv) after serial number 6 and the entries relating thereto in
columns (2), (3), (4) and (5), amended as aforesaid, the
following new serial numbers and entries relating thereto in
columns (1), (2), (3), (4) and (5) shall be inserted; namely:–
“7. Flavoured milk 0402.9900 10% Sold in retail
packing under
a brand name
26
8. Yogurt 0403.1000 10% Sold in retail
packing under
a brand name
9. Cheese 0406.1010 10% Sold in retail
packing under
a brand name
10. Butter 0405.1000 10% Sold in retail
packing under
a brand name
11. Cream 04.01 and
04.02
10% Sold in retail
packing under
a brand name
12. Desi ghee 0405.9000 10% Sold in retail
packing under
a brand name
13. Whey 04.04 10% Sold in retail
packing under
a brand name
14. Milk and cream,
concentrated and
added sugar or other
sweetening matter
0402.1000 10% Sold in retail
packing under
a brand name
27
15. Poultry feed, cattle
feed, and their
ingredients except
soya bean meal of
PCT heading
2304.0000 and oilcake
of cottonseed
falling under PCT
heading 2306.1000
2301.2090,
2305.0000,
2306.2000,
2306.3000,
2306.4100,
2306.5000,
2309.9010,
2309.9020,
2309.9090,
2936.2100,
2936.2200,
2936.2300,
2936.2400,
2936.2500,
2936.2600,
2936.2700,
2936.2800,
and
2306.4900
(Rape
Seed
Meal),
2308.9000
5%
28
(Guar
Meal),
2303.1000
(Corn
Gluton
Feed/Meal)
,
2303.1000
(Residues
of starch
manufactur
e and
similar
residues),
3507.9000
(Enzymesother),
2302.1000
(Maize
Bran),
2302.2000
(Rice
Bran),
29
2302.3000
(Wheat
Bran),
2302.4000
(Other
Cereals),
2302.5000
(Bran of
Leguminou
s Plants),
2306.7000
(Oil- cake
and other
solid
residues of
Maize
(corn)
germ),
2306.4900
(Sesame
Cake),
2306.9000
(Sesame
30
Meal/other
Meal),
2842.1000
(Double or
complex
silicates,
including
aluminosili
cates
whether or
not
chemically
defined),
2301.2010
(Fish
Meal),
0505.9000
(Poultry by
product
Meal),
and the
following
items only
31
of Feed
Grade:
2827.6000
(Potassium
Lodide),
2833.2990
(Manganese
Sulphate),
2833.2600
(Zinc
Sulphate),
2817.4000
(Zinc
Oxide),
2833.2500
(Copper
Sulphate),
2833.2910
(Ferrous
Sulphate),
2915.5000
(Propionic
acid, its
32
salts and
esters),
2930.4000
(DL
Methionine
),
2930.4000
(Methionin
e Hydroxy
Analogue
(liquid)),
2922.4100
(Lysine
Monohydro
Chloride
/sulphate),
2923.2000
(Lecithins),
2923.9000
(Betafin),
2922.4290
(Arganine),
2934.9910
33
(Furazolido
ne),
2922.5000
(Threonine
),
2835.2600
(Mono
Calcium
Phosphate)
,
2835.2500
(Di
Calcium
Phosphate)
, and
2835.2600
(Mono Di
Calcium
Phosphate)
16. Incinerators of
disposal of waste
management,
motorized sweepers
8417.8000,
8430.2000
and
8479.8990
5%
34
and snow ploughs
17. Re-importation of
foreign origin goods
which were
temporarily exported
out of Pakistan
99.18 5% Subject to
similar
conditions as
are envisaged
for the
purposes of
customs duty
under the
Customs
Act,1969, and
taxable value
shall be the
value
determined
under PCT
heading 99.18
of the said Act
increased by
customs duty
payable
18. Reclaimed lead Respective
headings
5% If supplied to
recognized
35
manufacturers
of lead and
lead batteries
19. Waste paper 47.07 5%
20. Plant, machinery,
equipment and
specific items used
in production of biodiesel
Respective
headings
5% The
Alternative
Energy
Development
Board
(AEDB),
Islamabad
shall certify in
the prescribed
manner and
format as per
Annex-B, as
given in the
Sixth
Schedule, that
the imported
goods are
bonafide
project
requirement.
The goods
shall not be
sold or
otherwise
disposed of
36
within a period
of five years of
their import
except with
the prior
approval of
the FBR and
payment of
customs
duties and
taxes leviable
at the time of
import
21. Rapeseed,
sunflower seed and
canola seed
1205.0000,
1206.0000
16% On import by
solvent
extraction
industries
22. Soya bean seed 1201.1000 6% On import by
solvent
extraction
industries,
subject to the
condition that
no refund of
input tax shall
be
admissible”;
23. Secondhand and
worn clothing or
footwear
6309.0000 5%
37
25. Agricultural tractors 8701.9020 10%
26. Tillage and seed
bed preparation
equipment:
7%
(i) Rotavator 8432.8010
(ii) Cultivator 8432.2910
(iii) Ridger 8432.8090
(iv) Sub soiler 8432.3090
(v) Rotary
slasher
8432.8090
(vi) Chisel plow 8432.1010
(vii) Ditcher 8432.1090
(viii) Border disc 8432.2990
(ix) Disc harrow 8432.2100
(x) Bar harrow 8432.2990
(xi) Mould board
plow
8432.1090
(xii) Tractor rear
or front blade
8430.6900
(xiii) Land leveller
or land planer
8430.6900
(xiv) Rotary tiller 8432.8090
(xv) Disc plow 8432.1090
(xvi) Soil-scrapper 8432.8090
(xvii) K.R.Karundi 8432.8090
(xviii) Tractor
mounted
trancher
8701.9020
(xix) Land leveler 8430.6900
27. Seeding or planting 7%
38
equipment:
(i) Seed-cumfertilizer
drill
(wheat, rice
barley, etc.)
8432.3010
(ii) Cotton or maize
planter with
fertilizer
attachment
8432.3090
(iii) Potato planter 8432.3090
(iv) Fertilizer or
manure
spreader or
broadcaster
8432.4000
(v) Rice
transplanter
8432.3090
(vi) Canola or
sunflower drill
8432.3010
(vii) Sugarcane
planter
8432.3090
28. Irrigation, drainage
and agro-chemical
application
equipment:
(i) Tubewells
filters or
strainers
(ii) Knapsack
sprayers
(iii) Granular
applicator
7%
8421.2100,
8421.9990
8424.2010
8424.2010
8424.2010
8424.2010
8424.2010
39
(iv) Boom or field
sprayers
(v) Self propelled
sprayers
(vi) Orchard
sprayer
29.
(i) Harvesting,
threshing and
storage
equipment:
(ii) Wheat
thresher
(iii) Maize or
groundnut
thresher or
sheller
(iv) Groundnut
digger
(v) Potato digger
or harvester
(vi) Sunflower
thresher
(vii) Post hole
digger
(viii) Straw balers
(ix) Fodder rake
(x) Wheat or rice
reaper
(xi) Chaff or
fodder cutter
(xii) Cotton picker
7%
8433.5200
8433.5200
8433.5900
8433.5300
8433.5200
8433.5900
8433.4000
8433.5900
8433.5900
8433.5900
8433.5900
8433.5200
8433.5200
8716.8090
8433.5900
8433.5100
8433.5900
40
(xiii) Onion or
garlic
harvester
(xiv) Sugar
harvester
(xv) Tractor trolley
or forage
wagon
(xvi) Reaping
machines
(xvii) Combined
harvesters
(xviii) Pruner/shears
30 Post-harvest handling and
processing & miscellaneous
machinery:
7%
(i) Vegetables
and fruits
cleaning and
sorting or
grading
equipment
(ii) Fodder and
feed cube
maker
equipment
8437.1000
8433.4000
; and
(b) in Table-2,–
(i) in the preamble, after the words “five percent”, the commas
and words “, except goods mentioned in serial numbers 1, 5
41
and 6 of the Annexure which shall be charged at the rate of
ten percent,” shall be inserted; and
(ii) in the Annexure, in column (1), serial numbers 3 and 7 and
entries relating thereto in columns (2), (3) and (4) shall be
omitted; and
(20) in the Ninth Schedule, in the Table, in column (1), against serial number 2,
in columns (3) and (4), –
(a) for the figure “150”, the figure “300” shall be substituted;
(b) for the figure “250”, the figure “500” shall be substituted; and
(c) for the figure “500”, the figure “1000” shall be substituted.
4. Amendment of Islamabad Capital Territory (Tax on Services) Ordinance,
2001 (XLII of 2001).— In the Islamabad Capital Territory (Tax on Services) Ordinance,
2001 (XLII of 2001), the following further amendments shall be made, namely:−
(1) in section 3,−
(a) in sub-section (1), for the words “rate of sixteen per cent” the words
“rates specified in column (4) of the Schedule to this Ordinance”
shall be substituted;
(b) in sub-section (2), after the words “specified in”, the words brackets
and figure “column (2) of” shall be inserted; and
(2) for the Schedule, the following shall be substituted, namely:-
“THE SCHEDULE
[See section 3(2)]
S. Description PCT Heading, if Rate of Tax
42
No. applicable
(1) (2) (3) (4)
1 Services provided or rendered by hotels,
motels, guest houses, marriage halls and
lawns (by whatever name called) including
“pandal” and “shamiana” services, clubs
including race clubs, and caterers.
9801.1000
9801.3000
9801.4000
9801.5000
9801.6000
Sixteen per
cent
2 Advertisement on television and radio,
excluding advertisements–
(a) sponsored by an agency of the Federal
or Provincial Government for health
education;
(b) sponsored by the Population Welfare
Division relating to educational promotion
campaign;
(c) financed out of funds provided by a
Government under grant-in-aid agreement;
and
(d) conveying public service messages, if
telecast on television by the World Wide
Fund for Nature (WWF) or United Nations
Children’s Fund (UNICEF)
9802.1000 and
9802.2000
Sixteen per
cent
43
3 Services provided by persons authorized
to transact business on behalf of others–
(a) stevedore;
(b) customs agents; and
(c) ship chandlers.
9805.2000
9805.4000 and
9805.8000
Sixteen per
cent
4 Courier services and cargo services by
road provided by courier companies;
9808.0000
9804.9000
Sixteen per
cent
5 Construction services, excluding:
(i) construction projects (industrial and
commercial) of the value (excluding actual
and documented cost of land) not
exceeding Rs. 50 million per annum.
(ii) the cases where sales tax is
otherwise paid as property developers or
promoters.
(iii) Government civil works including
Cantonment Boards.
(iv) construction of industrial zones,
consular buildings and other
organizations exempt from income tax.
(v) construction work under
international tenders against foreign
9824.0000
and
9814.2000
Sixteen per cent
44
grants-in-aid.
(vi) Residential construction projects where
the covered area does not exceed 10,000
square feet for houses and 20,000 square
feet for apartments
6 Services provided by property developers
and promoters (including allied services)
excluding the actual purchase value or
documented cost of land.
9807.0000
and
respective subheadings
of
heading 98.14
Rs.100 per
square yard for
land
development,
and
Rs.50 per
square feet for
building
construction
7 Services provided by persons engaged in
contractual execution of work, excluding:
(i) annual total value of the contractual
works or supplies does not exceed Rs.50
million;
(ii) the contract involving printing or
supplies of books.
9809.0000 Sixteen per cent
8 Services provided for personal care by
beauty parlours, clinics and slimming
9810.0000
9821.4000 and
Sixteen per cent
45
clinics, body massage centres, pedicure
centres; including cosmetic and plastic
surgery by such parlours/clinics, but
excluding:
(i) annual turnover does not exceed Rs.3.6
million; or
(ii) the facility of air-conditioning is not
installed or available in the premises.
9821.5000
9 Management consultancy services 9815.4000,
9819.9300
Sixteen per cent
10 Services provided by freight forwarding
agents, and packers and movers.
9805.3000,
9819.1400
Sixteen per cent
or Rs. 400 per
bill of lading,
whichever is
higher
11 Services provided by software or IT-based
system development consultants.
9815.6000 Sixteen per cent
12 Services provided by technical, scientific
and engineering consultants
9815.5000
Sixteen per cent
13 Services provided by other consultants
including but not limited to human resource
and personnel development services;
9815.9000
9818.3000
9818.2000
Sixteen per cent
46
market research services and
credit rating services.
14 Services provided by tour operators and
travel agents including all their allied
services or facilities (other than Hajj and
Umrah)
9805.5100
9805.5000
9803.9000
Sixteen per cent
15 Manpower recruitment agents including
labour and manpower supplies.
9805.6000 Sixteen per cent
16 Services provided by security agencies. 9818.1000 Sixteen per cent
17 Services provided by advertising agents 9805.7000 Sixteen per cent
18 Share transfer or depository agents
including services provided through
manual or electronic book-entry system
used to record and maintain securities and
to register the transfer of shares, securities
and derivatives.
9805.9000 Sixteen per cent
19 Business support services. 9805.9200 Sixteen per cent
20 Services provided by fashion designers,
whether relating to textile, leather, jewellery
or other product regimes, including allied
services, marketing, packing, delivery and
display, etc.
9819.6000 Sixteen per cent
21 Services provided by architects, town 9814.1000 Sixteen per cent
47
planners and interior decorators. 9814.9000
22 Services provided in respect of rent-a-car. 9819.3000 Sixteen per cent
23 Services provided by specialized
workshops or undertakings (autoworkshops;
workshops for industrial
machinery, construction and earth- moving
machinery or other special purpose
machinery etc; workshops for electric or
electronic equipments or appliances etc.
including computer hardware; car washing
or similar service stations and other
workshops).
98.20 Sixteen per cent
24 Services provided for specified purposes
including fumigation services, maintenance
and repair (including building and
equipment maintenance and repair
including after sale services) or cleaning
services, janitorial services, dredging or desilting
services and other similar services
etc.
98.22 Sixteen per cent
25 Services provided by underwriters,
indenters, commission agents including
brokers (other than stock) and auctioneers
9819.1100,
9819.1200,
9819.1300
Sixteen per cent
48
and
9819.9100
26 Services provided by laboratories
other than services relating to pathological
or diagnostic tests for patients.
98.17 Sixteen per cent
27 Services provided by health clubs, gyms,
physical fitness centres, indoor sports and
games centres and body or sauna
massage centres
9821.1000
and
9821.2000
9821.4000
Sixteen per cent
28 Services provided by laundries and dry
cleaners.
9811.0000 Sixteen per cent
29 Services provided by cable TV operators. 9819.9000 Sixteen per cent
Technical analysis and testing services 9819.9400
Sixteen per cent
30 Services provided by TV or radio program
producers or production houses.
— Sixteen per cent
31 Transportation through pipeline and conduit
services.
— Sixteen per cent
32 fund and asset (including investment)
management services.
— Sixteen per cent
33 Services provided by inland port operators
(including airports and dry ports) and allied
services provided at ports and services
— Sixteen per cent
49
provided by terminal operators including
services in respect of public bonded
warehouses, excluding the amounts
received by way of fee under any law or bylaw.
34 Technical inspection and certification
services and quality control (standards’
certification) services
— Sixteen per cent
35 Erection, commissioning and installation
services.
— Sixteen per cent
36 Event management services — Sixteen per cent
37 Valuation services (including competency
and eligibility testing services),
— Sixteen per cent
38 Exhibition or convention services — Sixteen per cent
39 Services provided in respect of mining of
minerals, oil & gas including related
surveys and allied activities
— Sixteen per cent
40 Services provided by property dealers and
realtors.
— Sixteen per cent
41 Call centres. — Eighteen and a
half per cent
42 Services provided by car/automobile
dealers.
— Sixteen per
cent”;.
50
5. .Amendment of Ordinance, XLIX of 2001.─ In the Income Tax Ordinance, 2001
(XLIX of 2001), the following further amendments shall be made, namely:-
(1) in section 2,-
(a) after clause (13A), the following new clause shall be inserted,
namely:-
“(13AA) “consumer goods” means goods that are consumed
by the end consumer rather than used in the production of
another good;”;
(b) after clause (17D) following new clause shall be inserted, namely:-
“Developmental REIT Scheme” means Developmental REIT
Scheme as defined under the Real Estate Investment Trust
Regulations, 2015;
(c)
(d) after clause (22), the following new clause shall be inserted,
namely:-
“(22A) “fast moving consumer goods” means consumer
goods which are supplied in retail marketing as per daily demand of
a consumer;”;
(e) after clause (28), the following new clause shall be inserted,
namely:-
“(28A) “imputable income” in relation to an amount subject to
final tax means the income which would have resulted in the same
tax, had this amount not been subject to final tax;”;
51
(f) in clause (29), for the word and figure “and 236M” a comma, word
and figures “, 236M and 236N” shall be substituted;
(g) after clause (42), the following new clause shall be inserted,
namely:-
“(42A) “PMEX” means Pakistan Mercantile Exchange
Limited a futures commodity exchange company incorporated
under the Companies Ordinance, 1984 (XLVII of 1984) and is
licensed and regulated by the Securities and Exchange
Commission of Pakistan;”
(h) for clause (47A), the following shall be substituted, namely:-
“(47A) “REIT Scheme” means a REIT Scheme as defined in
the Real Estate Investment Trust Regulations 2015;”;
(i) in clause (47B),
(i) for the letters “REITMC” the letters “RMC” shall be
substituted;
(ii) for the figure “2008” the figure “2015” shall be substituted;
(j) after clause (47B), the following new clauses shall be inserted,
namely:-
(47C) “Rental REIT Scheme” means a Rental REIT Scheme
as defined under the Real Estate Investment Trust Regulations,
2015;”;
(k) in clause (59A), in sub-clause (i), for the word “twenty-five”, the
word “fifty” shall be substituted; and
52
(l) after clause (74), the following new clause shall be added, namely:-
“(75) “whistleblower” means whistleblower as defined in section
227B;
(2) after section 4, the following new section shall be inserted, namely:-
“4B. Super tax for rehabilitation of temporarily displaced
persons.―(1) A super tax shall be imposed for rehabilitation of
temporarily displaced persons, for tax year 2015, at the rates specified in
Division IIA of Part I of the First Schedule, on income of every person
specified in the said Division.
(2) For the purposes of this section, “income” shall be the sum of the
following:-
(i) profit on debt, dividend, capital gains, brokerage and
commission;
(ii) taxable income under section (9) of this Ordinance;
(iii) imputable income as defined in clause (28A) of section 2;
and
(iv) income computed under Fourth, Fifth, Seventh and Eighth
Schedule.
(3) The super tax payable under sub-section (1) shall be paid, collected
and deposited on the date and in the manner as specified in sub-section
(1) of section 137 and all provisions of Chapter X of the Ordinance shall
apply.
53
(4) Where the super tax is not paid by a person liable to pay it, the
Commissioner shall by an order in writing, determine the Super tax
payable, and shall serve upon the person, a notice of demand specifying
the super tax payable and within the time specified under section 137 of
the Ordinance.
(5) Where the super tax is not paid by a person liable to pay it, the
Commissioner shall recover the super tax payable under sub-section (1)
and the provisions of Part IV,X, XI and XII of Chapter X and Part I of
Chapter XI of the Ordinance shall, so far as may be, apply to the
collection of super tax as these apply to the collection of tax under the
Ordinance.
(6) The Board may, by notification in the official Gazette, make rules for
carrying out the purposes of this section.”;
(3) after section 5, the following new section shall be inserted, namely:-
“5A. Tax on undistributed reserves.- (1) Subject to this
Ordinance, a tax shall be imposed at the rate of ten percent, on every
public company other than a scheduled bank or a modaraba, that derives
profits for a tax year but does not distribute cash dividends within six
months of the end of the said tax year or distributes dividends to such an
extent that its reserves, after such distribution, are in excess of hundred
percent of its paid up capital, so much of its reserves as exceed hundred
per cent of its paid up capital shall be treated as income of the said
company:
54
Provided that for tax year 2015, cash dividends may be distributed before
the due date mentioned in sub-section (2) of section 118, for filing of return for
tax year 2015.
(2) The provisions of sub-section (1) shall not apply to a company in which
not less than fifty percent shares are held by the Government.
(3) For the purpose of this section, ‘reserve’ includes amounts set-aside out
of revenue or other surpluses excluding capital reserves, share premium
reserves and reserves required to be created under any law, rules or
regulations.”;
(4) after section 7, the following new section shall be inserted, namely:—
“7A. Tax on shipping of a resident person.— (1) In the case of any
resident person engaged in the business of shipping, a presumptive income tax
shall be charged in the following manner, namely:-
(a) ships and all floating crafts including tugs, dredgers, survey
vessels and other specialized craft purchased or bare-boat
chartered and flying Pakistan flag shall pay tonnage tax of an
amount equivalent to one US $ per gross registered tonnage per
annum; and
(b) ships, vessels and all floating crafts including tugs, dredgers,
survey vessels and other specialized craft not registered in
Pakistan and hired under any charter other than bare-boat charter
shall pay tonnage tax of an amount equivalent to fifteen US cents
per ton of gross registered tonnage per chartered voyage provided
that such tax shall not exceed one US $ per ton of gross
registered tonnage per annum:
55
Explanation.- For the purpose of this section, the
expression “equivalent amount” means the rupee equivalent
of a US dollar according to the exchange rate prevalent on
the first day of December in the case of a company and the
first day of September in other cases in the relevant
assessment year.
(2) The provisions of this section shall not be applicable after 30th
June, 2020.”;
(5) after section 7A, amended as aforesaid, the following new section shall be
added, namely,-
“7B. Tax on profit on debt.— (1) Subject to this Ordinance, a
tax shall be imposed, at the rate specified in Division IIIA of Part I of the
First Schedule, on every person who receives a profit on debt from any
person mentioned in clause (a) to (d) of sub-section (1) of section 151.
(2) The tax imposed under sub-section (1) on a person who receives a
profit on debt shall be computed by applying the relevant rate of tax to the
gross amount of the profit on debt.
(3) This section shall not apply to a profit on debt that is exempt from
tax under this Ordinance.”
(6) in section 12, in sub-section (2), in clause (a),-
(a) the colon at the end shall be omitted; and
(b) the proviso shall be omitted;
56
(7) in section 15A, in sub-section (1), for clause (h), the following shall be
substituted, namely:—
“(h) any expenditure, not exceeding six per cent of the rent
chargeable to tax in respect of the property for the year computed before
any deduction allowed under this section, paid or payable by the person in
the year wholly and exclusively for the purpose of deriving rent chargeable
to tax under the head, “Income from Property” including administration and
collection charges;”;
(8) in section 37A, in sub-section (1), the words “held for a period of less than
a year” shall be omitted;
(9) in section 53;-
(a) in sub-section (2), after the word “time”, occurring for the second
time, the commas and words “pursuant to the approval of the
Economic Coordination Committee of Cabinet, whenever
circumstances exist to take immediate action for the purposes of
national security, natural disaster, national food security in
emergency situations, protection of national economic interests in
situations arising out of abnormal fluctuation in international
commodity prices, removal of anomalies in taxes, development of
backward areas and implementation of bilateral and multilateral
agreements” shall be inserted;
(b) after sub-section (3), the following new sub-section shall be added,
namely:-
57
“(4) Any notification issued after the promulgation of Finance
Act, 2015, under sub-section (2) shall, if not earlier rescinded, stand
rescinded on the expiry of the financial year in which it was issued”;
(10) in section 62, in sub-section (2), in clause (c), after the word “one”, the
words “and a half” shall be inserted;
(11) section 64 shall be omitted and thereafter the following new sections shall
be inserted, namely:-
“64A. Deductible allowance for profit on debt. — (1) Every
individual shall be entitled to a deductible allowance for the amount of any
profit or share in rent and share in appreciation for value of house paid by
the individual in a tax year on a loan by a scheduled bank or non-banking
finance institution regulated by the Securities and Exchange Commission
of Pakistan or advanced by Government or the Local Government,
Provincial Government or a statutory body or a public company listed on a
registered stock exchange in Pakistan where the individual utilizes the
loan for the construction of a new house or the acquisition of a house.
(2) The amount of an individual’s deductible allowance allowed under
sub-section (1) for a tax year shall not exceed fifty percent of taxable
income or one million rupees, whichever is lower.
(3) Any allowance or part of an allowance under this section for a tax
year that is not able to be deducted for the year shall not be carried
forward to a subsequent tax year.
58
64B. Tax credit for employment generation by
manufacturers.— (1) Where a taxpayer being a company formed for
establishing and operating a new manufacturing unit sets up a new
manufacturing unit between 1st day of July, 2015 and 30th of June, 2018,
it shall be given a tax credit for a period of ten years.
(2) The tax credit under sub-section (1) for a tax year shall be equal to
one percent of the tax payable for every fifty employees registered with
The Employees Old Age Benefits Institution and the Employees Social
Security Institutions of Provincial Governments during the tax year, subject
to a maximum of ten percent of the tax payable.
(3) Tax credit under this section shall be admissible where—
(a) the company is incorporated and manufacturing unit is setup
between the first day of July, 2015 and 30th day of June,
2018, both days inclusive;
(b) employs more than fifty employees in a tax year registered
with The Employees Old Age Benefits Institution and the
Employees Social Security Institutions of Provincial
Governments;
(c) manufacturing unit is managed by a company formed for
operating the said manufacturing unit and registered under
the Companies Ordinance, 1984 (XLVII of 1984) and having
its registered office in Pakistan; and
59
(d) the manufacturing unit is not established by the splitting up
or reconstruction or reconstitution of an undertaking already
in existence or by transfer of machinery or plant from an
undertaking established in Pakistan at any time before 1st
July 2015.
(4) Where any credit is allowed under this section and subsequently it
is discovered, on the basis of documents or otherwise, by the
Commissioner that any of the conditions specified in this section were not
fulfilled, the credit originally allowed shall be deemed to have been
wrongly allowed and the Commissioner may, notwithstanding anything
contained in this Ordinance, re-compute the tax payable by the taxpayer
for the relevant year and the provisions of this Ordinance shall, so far as
may be, apply accordingly.
(5) For the purposes of this section a manufacturing unit shall be
treated to have been setup on the date on which the manufacturing unit is
ready to go into production, whether trial production or commercial
production.”;
(12) in section 65, after sub-section (5), the following new sub-section shall be
added, namely:-
“(6) Where the person is entitled to a tax credit under section 65B,
65D or 65E, provisions of clause (d) of sub-section (2) of section 169 and
clause (d) of sub-section (1) of section 113 shall not apply.”;
60
(13) in section 65C, in sub-section (1), for the word “fifteen”, the word, “twenty”
shall be substituted;
(14) in section 65E, in sub-section (5), for the words, brackets and figure “in
respect of the tax year in which the plant or machinery referred to in subsection
(1) is installed and for the subsequent four years” the commas and
words “, for a period of five years beginning from the date of setting up or
commencement of commercial production from the new plant or
expansion project, whichever is later” shall be substituted;
(15) in section 94, in sub-section (2), the word “resident” shall be omitted;
(16) in section 100C,—
(a) in sub-section (1), before the word “Non-profit” the words “The
income of” shall be inserted; and
(b) in sub-section (2),
(i) after the word “Persons” the word “and incomes” shall be
inserted; and
(ii) in clause (c), the word and hyphen “sub-“ shall be omitted;
(17) in section (107),-
(a) for sub-section (1), the following shall be substituted, namely:-
“(1) The Federal Government may enter into an agreement,
bilateral or multilateral with the government or governments
of foreign countries or tax jurisdictions for the avoidance of
double taxation and the prevention of fiscal evasion and
exchange of information including automatic exchange of
61
information with respect to taxes on income imposed under
this Ordinance or any other law for the time being in force
and under the corresponding laws in force in that country,
and may, by notification in the official Gazette make such
provisions as may be necessary for implementing the
agreement.”; and
(b) after sub-section (1), the following new sub-sections shall be
inserted, namely:-
“(1A) Notwithstanding anything contained in any other law to
the contrary, the Board shall have the powers to obtain and
collect information when solicited by another country under a
tax treaty, a tax information exchange agreement, a
multilateral convention, an inter-governmental agreement, a
similar arrangement or mechanism.
(1B) Notwithstanding the provisions of the Freedom of
Information Ordinance, 2002 (XCVI of 2002), any information
received or supplied, and any concomitant communication or
correspondence made, under a tax treaty, a tax information
exchange agreement, a multilateral convention, a similar
arrangement or mechanism, shall be confidential subject to
subsection (3) of section 216.”;
(18) in section 113A, after sub-section (2), the following sub-section shall be
added, namely:-
62
“(3) This section shall not have effect till 30th June, 2018”
(19) in section 113B, for the expression “at the rates as the Federal
Government may notify in the official Gazette” the words “at the rate of two
per cent of the value of land notified by any authority for the purpose of
stamp duty” shall be substituted;
(20) in section 114, in sub-section (6), in the proviso, for the full stop at the
end, a colon shall be substituted and thereafter the following new proviso
shall be added, namely:-
“Provided further that the condition specified in clause (ba) shall not
apply if revised return is filed within 60 days of filing of return.”;
(21) in section 121, in sub-section (1), in clause (d), after for the word “or “
appearing for the first time the expression “a special audit panel appointed
under sub-section (11) of section 177 or” shall be substituted;
(22) in section 128, after sub-section (1A), the following new sub-section shall
be inserted, namely:-
“(1AA) The Commissioner (Appeals), after affording opportunity of
being heard to the Commissioner against whose order appeal has been
made, may stay the recovery of such tax for a further period of thirty days,
provided that the order on appeal shall be passed within the said period of
thirty days.”
(23) in section 137, in sub-section (2),
(a) for the word “fifteen” the word “thirty” shall be substituted;
63
(b) in the first proviso, for the word “sixty”, the word, “forty-five” shall be
substituted; and
(c) in the second proviso, for the word “sixty”, the word, “forty-five”
shall be substituted;
(24) in section 147, for sub-section (4A), the following shall be substituted,
namely:-
“(4A) Any taxpayer who is required to make payment of advance
tax in accordance with sub-section (4), shall estimate the tax
payable for the relevant tax year, at any time before the second
installment is due. In case the tax payable is likely to be more than
the amount that the taxpayer is required to pay under sub-section
(4), the taxpayer shall furnish to the Commissioner on or before the
due date of the second quarter an estimate of the amount of tax
payable by the taxpayer and thereafter pay fifty per cent of such
amount by the due date of the second quarter of the tax year after
making adjustment for the amount (if any) already paid in terms of
sub-section (4). The remaining fifty per cent of the estimate shall be
paid after the second quarter in two equal installments payable by
the due date of the third and fourth quarter of the tax year.”;
(25) in section 148, sub-section (2) shall be omitted;
(26) after section 148, the following new section shall be inserted, namely:—
“148A. Tax on local purchase of cooking oil or vegetable ghee
by certain persons.— (1)The manufacturers of cooking oil or vegetable
64
ghee, or both, shall be chargeable to tax at the rate of two percent on
purchase of locally produced edible oil.
(2) The tax payable under sub-section (1) shall be final tax in respect
of income accruing from locally produced edible oil.”;
(27) in section 151, for sub-section (3), the following shall be substituted,
namely:-
“(3) Tax deductible under this section shall be a final tax on the profit on
debt arising to a taxpayer, except where:
(a) taxpayer is a company; or
(b) profit on debt is taxable under section 5A.”;
(28) in section 152, after sub-section (4), the following new sub-section shall be
inserted; namely:-
“ (4A) The Commissioner may, on application made by the recipient
of a payment referred to in sub-section (2A) and after making such inquiry
as the Commissioner thinks fit, may allow in cases where the tax
deductable under sub-section (2A) is adjustable, by order in writing, any
person to make the payment, without deduction of tax or deduction of tax
at a reduced rate.”;
(29) in section 153, in sub-section (3), in the proviso,
(a) for clause (b), the following clause shall be substituted, namely:-
“(b) tax deductible on transactions referred to in clause (b)
of sub-section (1) shall be,-
65
(i) adjustable, with effect from tax year 2009, if
payments are received by a company;
and
(ii) a minimum tax, if payments are received by a
person other than a company;”
(b) in clause (c), for the full stop, at the end, a semicolon and the word
“and” shall be substituted and thereafter the following new clause
shall be added, namely:-
“ (d) tax deducted under clause (c) of sub-section (1) in
respect of a sportsperson shall be final tax with effect from
tax year 2013.”;
(30) in section 154, after sub-section (4), the following new sub-section shall be
added, namely:—
“(5) The provisions of sub-section (4) shall not apply to a person
who irrevocably opts not to be subject to final taxation:
Provided that this option shall be exercised at the time of
filing of return under section 114:
Provided further that the tax deducted under this sub-section
shall be minimum tax.”
(31) in section 159, sub-sections (3), (4) and (5) shall be omitted;
(32) in section 161, in sub-section (1B), for the word “eighteen” the word
“twelve” shall be substituted;
(33) after section 165A, the following new section shall be inserted, namely:-
66
“165B. Furnishing of information by financial institutions
including banks. — (1) Notwithstanding anything contained in any
law for the time being in force including but not limited to the
Banking Companies Ordinance, 1962 (LVII of 1962), the Protection
of Economic Reforms Act, 1992 (XII of 1992), the Foreign Exchange
Regulation Act, 1947 (VII of 1947) and any regulations made under
the State Bank of Pakistan Act, 1956 (XXXIII of 1956), on the
subject every financial institution shall make arrangements to
provide information regarding non-resident Persons to the Board in
the prescribed form and manner for the purpose of automatic
exchange of information under bilateral agreement or multilateral
convention.
(2) Subject to section 216, all information received under this section
shall be used only for tax and related purposes and kept
confidential.”;
(34) in section 169, in sub-section (1),—
67
a) after the word “collected” the words “or paid” shall be inserted;
and
b) in clause (a), after the figure “148”, the comma and figure “,
148A” shall be inserted;
(35) in section 171, in sub-section (1), for the word “fifteen” the words
“KIBOR plus 0.5 per cent” shall be substituted;
(36) in section 176,
(a) in sub-section (1), for clause (a), the following new clause
shall be substituted, namely:-
“(a) to furnish to the Commissioner or an authorised officer,
any information relevant to any tax leviable under this
Ordinance or to fulfill any obligation under any agreement with
foreign government or governments or tax jurisdiction, as
specified in the notice; or”; and
(b) after sub-section (1), the following new sub-section shall be
added, namely:-
“(1A) A special audit panel appointed under sub-section (11)
of section 177, for any tax year, may, with the prior approval of
68
the Commissioner concerned, enter the business premises of
a taxpayer, to obtain any information, require production of
any record, on which the required information is stored and
examine it within such premises and such panel may if
specifically delegated by the Commissioner, also exercise the
powers as provided in sub-section (4).”;
(37) in section 177, after sub-section (10), the following new sub-sections
shall be added, namely:-
“(11) The Board may appoint as many special audit panels as
may be necessary, comprising two or more members from the
following:-
(a) an officer or officers of Inland Revenue;
(b) a firm of Chartered Accountants as defined under the
Chartered Accountants Ordinance, 1961 (X of 1961);
(c) a firm of Cost and Management Accountants as defined under
the Cost and Management Accountants Act, 1966 (XIV of
1966); or
(d) any other person as directed by the Board,
69
to conduct an audit, including a forensic audit, of the income tax affairs of
any person or classes of persons and the scope of such audit shall be as
determined by the Board or the Commissioner on case to case basis.
(12) Special audit panel shall be headed by a Chairman who shall
be an officer of Inland Revenue.
(13) Powers under sections 175 and 176 for the purposes of
conducting an audit under sub-section (11), shall only be exercised by an
officer or officers of Inland Revenue, who are member or members of the
special audit panel, and authorized by the Commissioner.
(14) Notwithstanding anything contained in sub-sections (2) and
(6), where a person fails to produce before the Commissioner or a special
audit panel under sub-section (11) to conduct an audit, any accounts, documents
and records, required to be maintained under section 174 or any other relevant
document, electronically kept record, electronic machine or any other evidence
that may be required by the Commissioner or the panel, the Commissioner may
proceed to make best judgment assessment under section 121 of this
Ordinance and the assessment treated to have been made on the basis of
return or revised return filed by the taxpayer shall be of no legal effect.
(15) If any one member of the special audit panel, other than the
Chairman, is absent from conducting an audit, the proceedings of the
audit may continue, and the audit conducted by the special audit panel
70
shall not be invalid or be called in question merely on the ground of such
absence.
(16) Functions performed by an officer or officers of Inland
Revenue as members of the special audit Panel, for conducting audit,
shall be treated to have been performed by special audit panel.
(17) The Board may prescribe the mode and manner of
constitution, procedure and working of the special audit panel.”;
(38) in section 181A, in sub-section (3) for the colon at the end a full stop shall
be substituted and the proviso thereafter shall be omitted and thereafter
the following new sub-section shall be inserted, namely:-
“(4) From tax year 2015 and onwards, in case of individuals having
Computerized National Identity Card (CNIC) issued by the National
Database and Registration Authority, CNIC shall be used as National Tax
Number.”;
(39) in section 182, in sub-section (1), in the Table, in column (1),-
(a) against S.No (1A), in column (3), for the word “fifty”, the word “ten”
shall be substituted;
(b) against S.No. (IAA), in column (3), for the expression “Rs.100 for
each day of default.”, the expression “0.1% of the taxable income
per week or Rs.20,000, whichever is higher.” shall be substituted;
(40) in section 195, in sub-section (3), for the expression “Sub-section (3) of
section 187” the expression “Entry against S.No 10 in column (2) of the
Table in sub-section (1) of section 182” shall be substituted;
71
(41) in section 205, for the figure “18” wherever occurring, the figure “12” shall
be substituted;
(42) in section 207, in sub-section (1), after clause (g), following new clause
(ga) shall be inserted, namely:-
“(ga) special audit panel;”;
(43) in section 210, for sub-section (1B), the following sub-section shall be
substituted, namely:-
“(1B) The Commissioner may, by an order in writing, delegate to a
special audit panel appointed under sub-section (11) of section 177, or to
a firm of chartered accountants or a firm of Cost and Management
Accountants appointed by the Board or the Commissioner to conduct an
audit of person under section 177, all or any of the powers or functions to
conduct an audit under this Ordinance.”;
(44) in section 211, in sub-section (1), after the word “Revenue” the words,
brackets and figures “or by a special audit panel appointed under subsection
(11) of section 177” shall be inserted;
(45) after section 214C, the following new section shall be inserted, namely:—
“214D. Automatic selection for audit.- (1) A person registered as
retailer under rule (4) or rule (6) of the Sales Tax Special Procedure
Rules, 2007 who does not fulfill the parameters mentioned in sub-clauses
(a) to (e) of sub-section (3) shall be automatically selected for audit of
income tax affairs for that tax year.
72
(2) Audit of Income Tax affairs of persons automatically selected under
sub-section (1) shall be conducted as per procedure given in section 177
and all the provisions of the Ordinance, except the first proviso to subsection
(1) of section 177, shall apply accordingly.
(3) The provisions of sections 177 and 214C for a tax year shall not
apply to a person registered as retailer under rule (4) or rule (6) of the
Sales Tax Special Procedure Rules, 2007 subject to the conditions that—
(a) name of the person registered under rule (4) of the Sales
Tax Special Procedure Rules, 2007 appears in the sales tax
active taxpayers’ list ;
(b) complete return of income within the meaning of sub-section
(2) of section 114 has been filed within the date it was
required to be furnished as mentioned in section 118
including the date extended by the Board from time to time;
(c) the tax payable under sub-section (1) of section 137 has
been paid;
(d) two percent tax on turnover under section 113 has been paid
by a person registered under rule (6) of the Sales Tax
Special Procedure Rules, 2007 who files a return below
taxable limit and who in the preceding tax year had either not
filed return or had declared income below taxable limit; and
73
(e) twenty five percent higher tax than the previous tax year has
been paid by a person registered under rule (6) of the Sales
Tax Special Procedure Rules, 2007 who had declared
taxable income in the return for immediately preceding tax
year.
(4) This section shall have effect from the date appointed by the Board
through notification in official gazette”;
(46) after section 227A, the following new section shall be inserted, namely:-
“227B. Reward to whistleblowers.— (1) The Board may sanction reward
to whistleblowers in cases of concealment or evasion of income tax, fraud,
corruption or misconduct providing credible information leading to such
detection of tax.
(2) The Board may, by notification in the official Gazette, prescribe the
procedure in this behalf and also specify the apportionment of reward
sanctioned under this section for whistleblowers.
(3) The claim for reward by the whistleblower shall be rejected if—
(a) the information provided is of no value;
(b) the Board already had the information;
(c) the information was available in public records; or
(d) no collection of taxes is made from the information provided
from which the Board can pay the reward.
(4) For the purpose of this section, “whistleblower” means a person who
reports concealment or evasion of income tax leading to detection or
collection of taxes, fraud, corruption or misconduct, to the competent
authority having power to take action against the person or an income tax
74
authority committing fraud, corruption, misconduct, or involved in
concealment or evasion of taxes.”;
(47) in section 231A, sub-section (2) shall be omitted;
(48) in section 231AA, in sub-section (1),-
(a) for the colon at the end a full stop shall be substituted and
thereafter the proviso shall be omitted; and
(b) sub-section (4) shall be omitted;
(49) in section 231B,—
(a) in sub-section (3), for the words “car or jeep” the word “vehicle”
shall be substituted; and
(b) after sub-section (5), the following new sub-sections shall be
added, namely:—
“(6) For the purposes of this section the expression “date of first
registration” means:-
(a) the date of issuance of broad arrow number in case a
vehicle is acquired from the Armed Forces of Pakistan;
(b) the date of registration by the Ministry of Foreign Affairs in
case the vehicle is acquired from a foreign diplomat or a
diplomatic mission in Pakistan;
(c) the last day of the year of manufacture in case of acquisition
of an unregistered vehicle from the Federal or a Provincial
Government; and
75
(d) in all other cases the date of first registration by the Excise
and Taxation Department.
(7) For the purpose of this section “motor vehicle” includes car,
jeep, van, sports utility vehicle, pick-up trucks for private use,
caravan automobile, limousine, wagon and any other automobile
used for private purpose.”;
(50) in section 234, after sub-section (5), the following new sub-section shall be
added, namely:—
“(6) For the purpose of sub-sections (1) and (2) “motor vehicle”
shall include the vehicles specified in sub-section (7) of section 231B.”;
(51) in section 236,―
(a) in the marginal note, after the word “Telephone”, the words “and
internet” shall be inserted;
(b) in sub-section (1),—
(i) In clause (b), the word “and” shall be omitted; and
(ii) in clause (c), for the full stop at the end, a semi-colon and
word “; and” shall be substituted and thereafter the following
clauses shall be added, namely:―
“(d) internet bill of a subscriber; and
(e) prepaid cards for internet.”;
(c) in sub-section (2), after the word “telephone”, the words “or
internet” shall be inserted; and
76
(d) in sub-section (3), after the word “telephones”, the words “or
internet” shall be inserted;
(52) in section 236B,
(a) in sub-section (1), for full stop at end, a colon shall be substituted
and thereafter the following new proviso shall be added, namely:-
“Provided that this section shall not apply to routes of
Baluchistan coastal belt, Azad Jammu and Kashmir, FATA, Gilgit-
Baltistan and Chitral.”; and
(b) sub-section (4) shall be omitted;
(53) in section 236C, sub-section (3) shall be omitted;
(54) in section 236H, in sub-section (1),-
(i) the word and comma “fertilizer,” shall be omitted;
(ii) after the word “retailers”, the words “or wholesalers” shall be
inserted;
(55) in section 236I, after sub-section (5), the following new sub-section shall
be added, namely:-
“(6) Advance tax under this section shall not be collected from a
person who is a non-resident and,-
(i) furnishes copy of passport as an evidence to the educational
institution that during previous tax year, his stay in Pakistan was
less than one hundred eighty-three days;
(ii) furnishes a certificate that he has no Pakistan-source income; and
77
(iii) the fee is remitted directly from abroad through normal banking
channels to the bank account of the educational institution.”;
(56) in section 236K, sub-section (3) shall be omitted;
(57) after section 236N, the following new sections shall be inserted, namely:-
“236O. Advance tax under this chapter.- The advance tax under this
chapter shall not be collected in the case of withdrawals made by,-
(a) the Federal Government or a Provincial Government;
(b) a foreign diplomat or a diplomatic mission in Pakistan; or
(c) a person who produces a certificate from the Commissioner that his
income during the tax year is exempt.
236P. Advance tax on banking transactions otherwise than through
cash.— (1) Every banking company shall collect advance adjustable tax
from a non-filer at the time of sale of any instrument, including demand
draft, pay order, special deposit receipt, cash deposit receipt, short term
deposit receipt, call deposit receipt, rupee traveller’s cheque or any other
instrument of such nature.
(2) Every banking company shall collect advance adjustable tax from a
non-filer at the time of transfer of any sum through cheque or clearing,
interbank or intra bank transfers through cheques, online transfer,
telegraphic transfer, mail transfer, direct debit, payments through internet,
payments through mobile phones, account to account funds transfer, third
party account to account funds transfers, real time account to account
funds transfer, real time third party account to account fund transfer,
78
automated teller machine (ATM) transfers, or any other mode of electronic
or paper based funds transfer.
(3) The advance tax under this section shall be collected at the rate
specified in Division XXI of Part IV of the First Schedule, where the sum
total of payments for all transactions mentioned in sub-section (1) or subsection
(2), as the case may be, exceed fifty thousand rupees in a day.
(4) Advance tax under this section shall not be collected in the case of
Pakistan Realtime Interbank Settlement Mechanism (PRISM) transactions
or payments made for Federal, Provincial or local Government taxes.
236Q. Payment to residents for use of machinery and equipment.- (1)
Every prescribed person making a payment in full or in part including a
payment by way of advance to a resident person for use or right to use
industrial, commercial and scientific equipment shall deduct tax from the
gross amount at the rate specified in Division XXIII of Part IV of the First
Schedule.
(2) Every prescribed person making a payment in full or in part
including a payment by way of advance to a resident person on account of
rent of machinery shall deduct tax from the gross amount at the rate
specified in Division XXIII of Part IV of the First Schedule.
(3) The tax deductible under sub-sections (1) and (2) shall be final tax
on the income of such resident person.
(4) In this section “prescribed person” means a prescribed person as
defined in sub-section (7) of section 153.
79
236R. Collection of advance tax on education related expenses
remitted abroad.― (1) There shall be collected advance tax at the rate
specified in Division XXIIV of Part-IV of the First Schedule on the amount
of education related expenses remitted abroad.
(2) Banks, financial institutions, foreign exchange companies or any
other person responsible for remitting foreign currency abroad shall collect
advance tax from the payer of education related expenses.
(3) Tax collected under this section shall be adjustable against the
income of the person remitting payment of education related expenses.
(4) For the purpose of this section, “education related expenses”
includes tuition fee, boarding and lodging expenses, any payment for
distant learning to any institution or university in a foreign country and any
other expense related or attributable to foreign education.
236S. Dividend in specie. – Every person making payment of dividend-inspecie
shall collect tax from the gross amount of the dividend in specie
paid at the rate specified in Division I of Part III of the First Schedule.
236T. Collection of tax by Pakistan Mercantile Exchange
Limited(PMEX) .— (1) Pakistan Mercantile Exchange Limited(PMEX)
shall collect advance tax,—
(a) at the rates specified in Division XXII of Part IV of First
Schedule from its members on purchase of futures
commodity contracts;
80
(b) at the rates specified in Division XXII of Part IV of First
Schedule from its members on sale of futures commodity
contracts;
(c) at the rates specified in Division XXII of Part IV of First
Schedule from its members on purchase of futures
commodity contracts in lieu of tax on the commission earned
by such members;
(d) at the rates specified in Division XXII of Part IV of First
Schedule from its members on sale of futures commodity
contracts in lieu of tax on the commission earned by such
members;
(2) The tax collected under clauses (a) to (d) of sub-section (1) shall be
a minimum tax.”;
(58) in the First Schedule,-
(A) in Part I,-
(a) in Division-I,-
(i) in paragraph (1),-
(a) for the TABLE, the following shall be
substituted, namely:-
“TABLE
S.No Taxable Income Rate of tax
(1) (2) (3)
81
1. Where the taxable
income does not
exceed Rs
400,000
0%
2. Where the taxable
income exceeds
Rs 400,000 but
does not exceed
Rs 500,000
7% of the
amount
exceeding Rs
400,000
3. Where the taxable
income exceeds
Rs 500,000 but
does not exceed
Rs 750,000
Rs 7,000 + 10%
of the amount
exceeding Rs
500,000
4. Where the taxable
income exceeds
Rs 750,000 but
does not exceed
Rs 1,500,000
Rs 32,000 + 15%
of the amount
exceeding Rs
750,000
82
5. Where the taxable
income exceeds
Rs 1,500,000 but
does not exceed
Rs 2,500,000
Rs 144,500 +
20% of the
amount
exceeding Rs
1,500,000
6. Where the taxable
income exceeds
Rs 2,500,000 but
does not exceed
Rs 4,000,000
Rs 344,500 +
25% of the
amount
exceeding Rs
2,500,000
7. Where the taxable
income exceeds
Rs 4,000,000 but
does not exceed
Rs 6,000,000
Rs 719,500 +
30% of the
amount
exceeding Rs
4,000,000
8. Where the taxable
income exceeds
Rs 6,000,000
Rs 1,319,500 +
35% of the
amount
exceeding Rs
6,000,000”
83
(b) the proviso shall be omitted;
(ii) in paragraph (1A),
(a) for the TABLE, the following shall be
substituted, namely:-
“TABLE
S.No Taxable Income Rate of tax
(1) (2) (3)
1. Where the taxable
income does not
exceed Rs 400,000
0%
2. Where the taxable
income exceeds
Rs 400,000 but
does not exceed
Rs 500,000
2% of the amount
exceeding Rs
400,000
3. Where the taxable
income exceeds
Rs 500,000 but
does not exceed
Rs 750,000
Rs 2,000 + 5% of
the amount
exceeding Rs
500,000
4. Where the taxable
income exceeds
Rs 14,500 + 10% of
the amount
84
Rs 750,000 but
does not exceed
Rs 1,400,000
exceeding Rs
750,000
5. Where the taxable
income exceeds
Rs 1,400,000 but
does not exceed
Rs 1,500,000
Rs 79,500 + 12.5%
of the amount
exceeding Rs
1,400,000
6. Where the taxable
income exceeds
Rs 1,500,000 but
does not exceed
Rs 1,800,000
Rs 92,000 + 15% of
the amount
exceeding Rs
1,500,000
7. Where the taxable
income exceeds
Rs 1,800,000 but
does not exceed
Rs 2,500,000
Rs 137,000 +
17.5% of the
amount exceeding
Rs 1,800,000
8. Where the taxable
income exceeds
Rs 2,500,000 but
does not exceed
Rs 3,000,000
Rs 259,500 + 20%
of the amount
exceeding Rs
2,500,000
85
9. Where the taxable
income exceeds
Rs 3,000,000 but
does not exceed
Rs 3,500,000
Rs 359,500 +
22.5% of the
amount exceeding
Rs 3,000,000
10. Where the taxable
income exceeds
Rs 3,500,000 but
does not exceed
Rs 4,000,000
Rs 472,000 + 25%
of the amount
exceeding Rs
3,500,000
11. Where the taxable
income exceeds
Rs 4,000,000 but
does not exceed
Rs 7,000,000
Rs 597,000 +
27.5% of the
amount exceeding
Rs 4,000,000
12. Where the taxable
income exceeds
Rs 7,000,000
Rs 1,422,000 +
30% of the amount
exceeding Rs
7,000,000
(b) the proviso, the semicolon at the end of proviso
and the word “and” shall be omitted;
(iii) in paragraph (1B), for sub-paragraph (ii), the following
shall be substituted, namely:-
86
“(ii) a taxpayer of the age of not less than sixty
years on the first day of that tax year,
the tax liability on such income shall be
reduced by fifty per cent.”;
(b) in Division II, in paragraph (i), in the second proviso for the
full stop at the end, a colon shall be substituted and thereafter the
following new proviso shall be added, namely :-
“Provided further that the rate of tax imposed on taxable
income of a company, other than banking company shall be 32%
for the tax year 2016.”;
(c) after Division II, the following new Division shall be inserted,
namely:-
“Division IIA
Rates of Super Tax
Person Rate of super tax
Banking Company 4% of the income
Person, other than a banking
company, having income equal to
or exceeding Rs.500 million
3% of the income ”;
(d) in Division-III, in paragraph (b),
(i) for the figure “10”, the figure “12.5” shall be
substituted;
87
(ii) in the first proviso, for the figure “12.5”, the figure “15”
shall be substituted;
(iii) in the second proviso, after the word “scheme”, the
comma and words, “REIT Scheme” shall be inserted;
and
(iv) for the full stop at the end a colon shall be substituted
and thereafter the following new proviso shall be
added, namely:-
“Provided also that if a Developmental REIT
Scheme with the object of development and
construction of residential buildings is set up by
thirtieth day of June, 2018, dividend received by a
person from such Developmental REIT Scheme shall
be reduced by fifty percent for three years from
thirtieth day of June, 2018.”;
(e) after Division III, the following new Division shall be inserted,
namely:-
“Division IIIA
Rate for Profit on Debt
The rate of tax for profit on debt imposed under section 5A shall be-
TABLE
S.No Profit on Debt Rate of tax
(1) (2) (3)
88
1. Where profit on debt does not
exceed Rs 25,000,000
10%
2. Where profit on debt exceeds
Rs 25,000,000 but does not
exceed
Rs 50,000,000
2,500,000 + 12.5% of
the amount exceeding
Rs 25,000,000
3. Where profit on debt exceeds
Rs 50,000,000
Rs 5,625,000 + 15%
of the amount
exceeding Rs
50,000,000”;
(f) for Division-VII, the following shall be substituted, namely:-
“Division VII
Capital Gains on disposal of Securities
The rate of tax to be paid under section 37A shall be as follows—
S.No. Period Tax Year 2015 Tax Year 2016
(1) (2) (3) (4)
1. Where holding period of a
security is less than
twelve months
12.5% 15%
2. Where holding period of a
security is twelve months
or more but less than
twenty four months
10% 12.5%
89
3. Where holding period of a
security is twenty four
months or more but less
than four years
0% 7.5%
Provided that the rate for companies shall be as specified in Division II of
Part I of First Schedule, in respective of debt securities;
Provided further that a mutual fund or a collective investment scheme or a
REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on
redemption of securities as prescribed, namely:-
Category Filer Non-Filer
Individual and
association of persons
10% for stock funds
10% for others
17.5%
Company 10% for stock funds
25% for others
25%:
Provided further that in case of a stock fund if dividend receipts of the fund
are less than capital gains, the rate of tax deduction shall be 12.5%.”
(f) in Division IX, in the Table, in column (1),
(i) against S.No 1, in column (2), after clause (c),
following new clause shall be inserted, namely:-
“(d) Dealers or distributors of fertilizers.”; and
(ii) against S.No 2, in column (2), in clause (a), the word
“fertilizers” and the expression “consumer goods including”
shall be omitted;
90
(B) For Part II, the following shall be substituted, namely:-
“PART II
RATES OF ADVANCE TAX
[See Division II of Part V of Chapter X]
The rate of advance tax to be collected by the Collector of Customs under
section 148 shall be-
S.No Persons Rate
Filer Non-Filer
(1) (2) (3) (4)
1. (i) Industrial undertaking
importing remeltable
steel (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;
1% of the import
value as
increased by
customs-duty,
sales tax and
federal excise
duty
1.5% of the
import
value as
increased
by
customsduty,
sales
tax and
federal
excise duty
91
(iii) Persons importing urea;
(iv) Manufacturers covered
under Notification No.
S.R.O. 1125(I)/2011
dated the 31st
December, 2011 and
importing items covered
under S.R.O.
1125(I)/2011 dated the
31st December, 2011
(v) Persons importing Gold;
and
(vi) Persons importing Cotton
2. Persons importing pulses 2% of the import
value as increased
by customs-duty,
sales tax and
federal excise duty
3% of the
import
value as
increased
by
customsduty,
sales
tax and
federal
excise duty
92
3. Commercial importers
covered under Notification
No. S.R.O. 1125(I)/2011
dated the 31st December,
2011 and importing items
covered under S.R.O.
1125(I)/2011 dated the 31st
December, 2011.
3% of the import
value as
increased by
customs-duty,
sales tax and
federal excise
duty
4.5% of the
import
value as
increased
by
customsduty,
sales
tax and
federal
excise duty
4. Ship breakers on import of
ships
4.5% 6.5%
5. Industrial undertakings not
covered under S. Nos. 1 to 4
5.5% 8%
6. Companies not covered under
S. Nos. 1 to 5
5.5% 8%
7. Persons not covered under S.
Nos. 1 to 6
6% 9%;
(C) In Part III,
(a) in Division I,-
(i) after the figure “150” the word and figure “ and 236S” shall
be inserted; and
(ii) in paragraph (c),
93
(a) for the figure “15” the figure “17.5” shall be
substituted; and
(b) in the first proviso,
(i) after the word “scheme” a comma and words “,
REIT Scheme” shall be inserted; and
(ii) for the full stop at the end a colon shall be
substituted and thereafter the following new proviso
shall be added, namely:-
“Provided further that if a Developmental REIT
Scheme with the object of development and
construction of residential buildings is set up by
thirtieth day of June, 2018, dividend received by a
person from such Developmental REIT Scheme shall
be reduced by fifty percent for three years from
thirtieth day of June, 2018.”;
(c) in the second proviso, for the figure “12.5”, the figure
“15” shall be substituted;
(b) in Division IA, for the figure “15%” the figure “17.5%” shall be
substituted;
(c) in Division II,
(i) for paragraph (4), the following shall be substituted, namely:-
“(4) The rate of tax to be deducted from a payment referred
to in clause (a) of sub-section (2A) of section 152 shall be–
94
(i) in case of a company, 4% of the gross amount
payable, if the company is a filer and 6% if the
company is a non-filer; and
(ii) in any other case, 4.5% of the gross amount payable,
if the person is a filer and 6.5% if the person is a nonfiler.”;
(ii) in paragraph (5), for sub-paragraph (ii), the following shall be
substituted, namely:-
“(ii) in cases other than transport,—
(a) in case of a company, 8% of the gross amount
payable, if the company is a filer and 12% if the
company is a non-filer; and
(b) in any other case, 10% of the gross amount
payable, if the person is a filer and 15% if the person
is a non-filer;”;
(iii) for paragraph (6), the following shall be substituted, namely:-
“(6) The rate of tax to be deducted from a payment
referred to in clause (c) of sub-section (2A) of section
152 shall be,—
(i) 10% of the gross amount payable in case of
sportspersons;
95
(ii) in case of a company, 7% of the gross amount
payable, if the company is a filer and 10% if the
company is a non-filer; and
(iii) in any other case, 7.5% of the gross amount
payable, if the person is a filer and 10% if the person
is a non-filer.”;
(d) in Division III,-
(i) in paragraph (1), in sub-paragraph (b), for clauses (i) and (ii),
the following shall be substituted, namely:-
“(i) in case of a company, 4% of the gross amount
payable, if the company is a filer and 6% if the
company is a non-filer; and
(ii) in any other case, 4.5% of the gross amount payable,
if the person is a filer and 6.5% if the person is a
non-filer”;
(ii) in paragraph (2), in sub-paragraph (ii) , for clauses (a) and
(b), the following shall be substituted, namely:-
“(a) in case of a company, 8% of the gross amount payable,
if the company is a filer and 12% if the company is a nonfiler;
and
(b) in any other case, 10% of the gross amount payable, if
the person is a filer and 15% if the person is a non-filer;”;
96
(iii) in paragraph (3), for sub-paragraphs (i), (ii) and (ii), the
following shall be substituted, namely:-
“(i) 10% of the gross amount payable in case of
sportspersons;
(ii) in case of a company, 7% of the gross amount
payable, if the company is a filer and 10% if the company is
a non-filer; and
(iii) in any other case, 7.5% of the gross amount payable,
if the person is a filer and 10% if the person is a non-filer.”;
(e) in Division VIA, after the word “payment” the word and figure “ for
filers and 15% for non-filers” shall be inserted;
(D) in Part IV,-
(a) for Division II, the following shall be substituted, namely:-
“Division II
Brokerage and Commission
The rate of collection under sub-section (1) of section 233 shall be,—
(i) in case of filers, —
(a) 10% of the amount of the payment, in case of
advertising agents; and
(b) 12% of the amount of payment in all other
cases; and
(ii) in case of non-filers, 15% of the amount of payment.”;
(b) in Division III,-
97
(i) for paragraph “(i)” the following shall be substituted, namely:-
“(1) In case of goods transport vehicles, tax of two rupees
and fifty paisa per kilogram of the laden weight shall be
charged for filer and four rupees per kilogram of the laden
weight for non-filer.”;
(ii) in paragraph (2),for the Table, the following shall be
substituted, namely:-
S.No Capacity Rs per seat per annum
Filer Non-Filer
(i) Four or more persons
but less than ten
persons.
50 100
(ii) Ten or more persons
but less than twenty
persons.
100 200
(iii) Twenty persons or
more.
300 500; and
(iii) in paragraph (3),-
(a) for the word “cars”, the word “vehicles” shall be
substituted; and
(b) for the Table, the following shall be substituted,
namely:-
“S. Engine capacity for filers for non-filer
98
No.
(1) (2) (3) (4)
1. upto 1000cc Rs. 800 Rs. 1,200
2.
1001cc to
1199cc
Rs. 1,500 Rs. 4,000
3.
1200cc to
1299cc
Rs. 1,750 Rs. 5,000
4.
1300cc to
1499cc
Rs. 2,500 Rs. 7,500
5.
1500cc to
1599cc
Rs. 3,750 Rs. 12,000
6.
1600cc to
1999cc
Rs. 4,500 Rs. 15,000
7.
2000cc &
above
Rs.10,000 Rs. 30,000”;
(c) in Division V, for clause (b) the following shall be substituted,
namely;―
“(b) in the case of
subscriber of internet,
mobile telephone and
pre-paid internet or
telephone card
14% of the amount
of bill or sales price
of internet pre-paid
card or prepaid
telephone card or
sale of units through
99
any electronic
medium or whatever
form”;
(d) in Division VI, for the figure “0.5” the figure “0.6” shall be
substituted;
(e) in Division VIA, after the word “transactions” the words and figure “
for filers and 0.6% for non-filers” shall be inserted;
(f) for Division VII, the following shall be substituted, namely:-
“DIVISION VII
Advance Tax on Purchase, Registration and Transfer of Motor Vehicles
(1) The rate of tax under sub-sections (1) and (3) of section 231B shall be as
follows:–
S. No. Engine capacity For filers Tax for nonfiler
(1) (2) (3) (4)
1. upto 850cc Rs. 10,000 Rs. 10,000
2. 851cc to 1000cc Rs. 20,000 Rs. 25,000
3. 1001cc to 1300cc Rs. 30,000 Rs. 40,000
4. 1301cc to 1600cc Rs. 50,000 Rs. 100,000
5. 1601cc to 1800cc Rs. 75,000 Rs. 150,000
6. 1801cc to 2000cc Rs. 100,000 Rs. 200,000
7. 2001cc to 2500cc Rs. 150,000 Rs. 300,000
8. 2501cc to 3000cc Rs. 200,000 Rs. 400,000
100
9. Above 3000cc Rs. 250,000 Rs. 450,000”
(2) The rate of tax under sub-section (2) of section 231B shall be as follows:–
S. No. Engine capacity For filers Tax for non-filer
(1) (2) (3) (4)
1. upto 850cc – 5000
2. 851cc to 1000cc 5,000 15,000
3. 1001cc to 1300cc 7,500 25,000
4. 1301cc to 1600cc 12,500 65,000
5. 1601cc to 1800cc 18,750 100,000
6. 1801cc to 2000cc 25,000 135,000
7. 2001cc to 2500cc 37,500 200,000
8. 2501cc to 3000cc 50,000 270,000
9. Above 3000cc 62,500 300,000
Provided that the rate of tax to be collected shall be
reduced by 10% each year from the date of first registration
in Pakistan.”;
(g) in Division XIV, in the Table, in the first column, against the entry
“Fertilizers” ,—
(a) in the second column, for the figure “0.2”, the figure “0.7”
shall be substituted;
(b) in the third column for the figure “0.4”, the figure “ 1.4” shall
be substituted;
101
(h) in Division XIX, in clause (i), for the figure “100,000”, the
figure“75,000” shall be substituted;
(i) in Division XX, for the Table, the following shall be substituted,
namely:-
“S. No. Type of Ticket Rate
(1) (2) (3)
1. First/Executive Class Rs.16,000 per person
2. Others excluding Economy Rs.12,000 per person
3. Economy 0”; and
(j) after Division XX, the following new Divisions shall be added,
namely:-
“Division XXI
Advance Tax On Banking Transactions Otherwise Than Through Cash
The rate of tax to be collected under section 236P shall be 0.6% of the
transaction for non-filers.
Division XXII
Rate of Collection of Tax by Pakistan Mercantile Exchange Limited
The rate of tax to be collected under section 236T shall be shall be as follows:–
(a) in case of sale or purchase of future commodity contract as per clause (a)
and (b) of sub-section (1) of section 236T shall be 0.1%.
(b) in case of commission on sale or purchase of future commodity contract
as per clause (c) and (d) of sub-section (1) of section 236T shall be 0.1%.
DIVISION XXIII
102
Payment to a resident person for right to use machinery and equipment
Rate of collection of tax under section 236Q shall be 10 percent of the amount of
payment.
DIVISION XXIV
Collection of advance tax on education related expenses remitted abroad
Rate of collection of tax under section 236R shall be 5 percent of the amount of
total education related expenses.”;
(59) in the Second Schedule,-
(A) in Part I,-
(i) clause (20) shall be omitted;
(ii) in clause (61),after sub-clause (xliv), the following new subclause
shall be added, namely:-
“(xlv) The Indus Hospital, Karachi.”
(iii) in clause (66),—
(a) sub-clause (xxx) occurring for the second time shall
be renumbered as “(xxxii)”;
(b) after sub-clause (xxxii) renumbered as aforesaid, the
following new sub-clause shall be added, namely:—
“(xxxiii) The Indus Hospital, Karachi.”;
(iv) in clause (99A), for the full stop at the end a colon shall be
substituted and thereafter the following proviso shall be
added, namely:-
103
“Provided that profit and gains on sale of immovable
property to a Developmental REIT Scheme with the object of
development and construction of residential buildings shall
be exempt upto thirtieth day of June, 2020”
(v) in clause (103A), after the figure “59B” the words “subject to
the condition that return of the group has been filed for the
tax year.” shall be inserted;
(vi) clause (113) shall be omitted;
(vii) in clause (126A) for the figure, “twenty” the figure, “twenty
three” shall be substituted;
(viii) clause (126F) shall be omitted;
(ix) after clause (126H), the following new clauses shall be
added, namely:-
“(126I) Profits and gains derived by a taxpayer, from an
industrial undertaking set up by 31st day of December, 2016
and engaged in the manufacture of plant, machinery,
equipment and items with dedicated use (no multiple uses)
for generation of renewable energy from sources like solar
and wind, for a period of five years beginning from first day
of July, 2015.
(126J) Profits and gains derived by a taxpayer, from an
industrial undertaking set up between 1st day of July, 2015
and 30th day of June, 2016 engaged in operating
104
warehousing or cold chain facilities for storage of agriculture
produce for a period of three years beginning with the month
in which the industrial undertaking is set up or commercial
operations are commenced, whichever is later.
(126K) Profits and gains derived by a taxpayer, from an
industrial undertaking set up between 1st day of July, 2015
and 31st day of December, 2016 which is engaged in
operating halal meat production and has obtained halal
certification, for a period of four years beginning with the
month in which the industrial undertaking is set up or
commercial production is commenced, whichever is later.
(126L) Profits and gains derived by a taxpayer, from a
manufacturing unit set up in Khyber Pukhtunkhwa Province
between 1st day of July, 2015 and 30th day of June, 2018 for
a period of five years beginning with the month in which the
industrial undertaking is set up or commercial production is
commenced, whichever is later:
Provided that exemption under this clause shall be
admissible where—
(a) the manufacturing unit is setup between the
first day of July, 2015 and 30th day of June, 2018,
both days inclusive; and
105
(b) the manufacturing unit is not established by the
splitting up or reconstruction or reconstitution of an
undertaking already in existence or by transfer of
machinery or plant from an undertaking established in
Pakistan at any time before 1st July 2015.
(126M) Profits and gains derived by a taxpayer from a
transmission line project set up in Pakistan on or after the
1st day of July, 2015. The exemption under this clause shall
apply to such project which is—
(a) owned and managed by a company formed for
operating the said project and registered under the
Companies Ordinance, 1984 (XLVII of 1984), and
having its registered office in Pakistan;
(b) not formed by the splitting up, or the
reconstruction or reconstitution, of a business already
in existence or by transfer to a new business of any
machinery or plant used in a business which was
being carried on in Pakistan at any time before the
commencement of the new business; and
(c) owned by a company fifty per cent of whose
shares are not held by the Federal Government or
Provincial Government or a Local Government or
which is not controlled by the Federal Government or
106
a Provincial Government or a Local Government:
Provided that the exemption under this clause
shall not apply to projects set up on or after the
thirtieth day of June, 2018.”; and
(x) after clause (140), the following new clauses shall be added,
namely:-
“(141) Profit and gains derived by LNG Terminal
Operators and Terminal Owners for a period of
five years beginning from the date when
commercial operations are commenced.
(142) Income from social security contributions
derived by Balochistan Employees’ Social Security
Institution, Employees’ Social Security Institution
Khyber Pakhtunkhwa, Punjab Employees’ Social
Security Institution and Sindh Employees’ Social
Security Institution.
Explanation.- For the removal of doubt, it is clarified
that all incomes other than social security contributions shall
not be exempt”;
(B) in Part II,-
(i) clauses (13C), (14), (14A) (14B) and (21) shall be omitted;
and
107
(ii) after clause (28A), the following new clause shall be added,
namely:-
“(28B) The rate of tax shall be 0.15% under section 231A
on cash withdrawal by an exchange company, duly
licensed and authorized by the State Bank of Pakistan,
exclusively dedicated for its authorized business related
transactions, subject to the condition that a certificate
issued by the concerned Commissioner Inland Revenue
for a financial year mentioning details and particulars of
its Bank Account being used entirely for business
transactions is provided.”;
(C) in Part III, clause (16) shall be omitted; and
(D) in Part IV,-
(a) in clause (11A),-
(i) in sub-clause (i), for the word, comma and figures
“Rules, 2006” the word, comma and figures “Regulations,
2015” shall be substituted;
(ii) sub-clause (iv) shall be omitted;
(iii) in sub-clause (v), the words “and 132B” shall be
omitted;
(iv) in sub-clause (xvi), the word “and” shall be omitted;
and
108
(v) in sub-clause (xvii), for the full stop at the end a semicolon
and word “; and” shall be substituted and thereafter the
following new sub-clauses shall be added, namely,-
“(xviii) companies, qualifying for exemption under
clause (132B) of Part-I of this Schedule, in respect of
receipts from a coal mining project in Sindh, supplying
coal exclusively to power generation projects.
(xix) LNG Terminal Operators and LNG Terminal
Owners.
(xx) taxpayers located in the most affected and
moderately affected areas of Khyber Pakhtunkhwa,
FATA and PATA for tax year 2010, 2011 and 2012
excluding manufacturers and suppliers of cement,
sugar, beverages and cigarettes.
(xxi) Rice Mills for the Tax Year 2015.
(xxii) taxpayers qualifying for exemption under
clauses (126I) of Part-I of this Schedule in respect of
income from manufacture of equipment with
dedicated use for generation of renewable energy.
(xxiii) taxpayers qualifying for exemption under
clauses (126J) of Part-I of this Schedule in respect of
income from operating warehousing or cold chain
facilities for storage of agriculture produce.
109
(xxiv) taxpayers qualifying for exemption under
clauses (126K) of Part-I of this Schedule in respect of
income from operating halal meat production, during
the period mentioned in clause (126K).
(xxv) taxpayers qualifying for exemption under
clauses (126L) of Part-I of this Schedule in respect of
income from a manufacturing unit set up in Khyber
Pukhtunkhwa Province between 1st day of July, 2015
and 30th day of June, 2018.”;
(b) after clause (11C), the following new clause shall be
inserted, namely:-
“(11D) The provisions of section 113C shall not apply to LNG
Terminal Operators and LNG Terminal Owners.”;
(c) clause (16A) shall be omitted;
(d) in clause (46), for the word “or” occurring for the second
time, the expression “and provisions of sub-section (2A) of section
152 shall not apply to” shall be substituted;
(e) in clause (56),-
(i) in sub-clause (i), for the commas, figures and words
“Chapters 27, 86 and 99”, the figures and words “Chapter 86
and 99 except PCT Heading 9918” shall be substituted;
(ii) after clause (i), amended as aforesaid, the following new
clause shall be inserted, namely,-
110
“(ia) Petroleum oils and oils obtained from bituminous
minerals crude (PCT Code 2709.0000), Furnace-oil
(PCT Code 2710.1941), High speed diesel oil (PCT)
Code 2710.1931), Motor spirit (PCT Code
2710.1210), J.P.1 (PCT Code 2710.1912), base oil for
lubricating oil (PCT Code 2710.1993) imported by
Pakistan State Oil Company Limited, Shell Pakistan
Limited, Attock Petroleum Limited, Byco Petroleum
Pakistan Limited, Admore Gas Private Limited,
Chevron Pakistan Limited, Total-PARCO
Pakistan(Private) Limited, Hascol Petroleum Limited,
and oil refineries.”;
(f) in clause (56B), the expression “(56B) Provisions of section
148 shall not apply in respect of import of potatoes between 5th of
May, 2014 and 31st of July, 2014, provided that such imports shall
not exceeds 200,000 metric tons in aggregate during the said
period.” shall be omitted;
(g) clause (56H) shall be omitted;
(h) in clause (57), the Explanation at the end shall be numbered
as paragraph(i) of that Explanation and thereafter the following
new paragraph shall be added, namely:-
“(ii) It is further clarified that in-house preparation and
processing of food and allied items for sale to customers
111
shall not disqualify a company from being treated as a
Trading House, provided that all the conditions in this clause
are fulfilled and sale of such items does not exceed two per
cent of the total sales.”;
(i) in clause (59), sub-clause (iii) shall be omitted;
(j) clauses (61A) and (72A) shall be omitted
(k) in clause (77), after the word and comma “torches,”, a
comma and the words “tubular daylighting devices such as
solatube,” shall be inserted;
(l) clauses (79) and (83) shall be omitted;
(m) in clause (86), for the figure “2016” the figure “2017” shall be
substituted;
(n) clauses (89) and (90) shall be omitted;
(o) after clause (90), omitted as aforesaid, the following new
clauses shall be added, namely:-
“(91) The provisions of section 148 shall not apply to-
(i) Tillage and seed bed preparation equipment as
specified below
Equipment PCT Code
(i) Rotavator 8432.8010
(ii) Cultivator 8432.2910
(iii) Ridger 8432.8090
(iv) Sub soiler 8432.3090
112
(v) Rotary slasher 8432.8090
(vi) Chisel plow 8432.1010
(vii) Ditcher 8432.1090
(viii) Border disc 8432.2990
(ix) Disc harrow 8432.2100
(x) Bar harrow 8432.2990
(xi) Mould board plow 8432.1090
(xii) Tractor rear or
front blade
8430.6900
(xiii) Land leveller or
land planer
8430.6900
(xiv) Rotary tiller 8432.8090
(xv) Disc plow 8432.1090
(xvi) Soil-scrapper 8432.8090
(xvii) K.R.Karundi 8432.8090
(xviii) Tractor mounted
trancher
8701.9020
(xix) Land leveler 8430.6900
(ii) Seeding or planting equipment
Equipment PCT Code
(i) Seed-cum-fertilizer drill
(wheat, rice barley, etc.)
8432.3010
(ii) Cotton or maize planter 8432.3090
113
with fertilizer attachment
(iii) Potato planter 8432.3090
(iv) Fertilizer or manure
spreader or broadcaster
8432.4000
(v) Rice transplanter 8432.3090
(vi) Canola or sunflower drill 8432.3010
(vii) Sugarcane planter 8432.3090
(iii) Irrigation, drainage and agro-chemical
application equipment
Equipment PCT Code
(i) Tubewells filters or
strainers
8421.2100,
8421.9990
(ii) Knapsack sprayers 8424.2010
(iii) Granular applicator 8424.2010
(iv) Boom or field sprayers 8424.2010
(v) Self propelled sprayers 8424.2010
(vi) Orchard sprayer 8424.2010
(iv) Harvesting, threshing and storage equipment
Equipment PCT Code
(i) Wheat thresher 8433.5200
(ii) Maize or groundnut thresher
or sheller
8433.5200
(iii) Groundnut digger 8433.5900
114
(iv) Potato digger or harvester 8433.5300
(iv) Sunflower thresher 8433.5200
(v) Post hole digger 8433.5900
(vi) Straw balers 8433.4000
(vii) Fodder rake 8433.5900
(viii) Wheat or rice reaper 8433.5900
(ix) Chaff or fodder cutter 8433.5900
(x) Cotton picker 8433.5900
(xi) Onion or garlic harvester 8433.5200
(xii) Sugar harvester 8433.5200
(xiii) Tractor trolley or forage wagon 8716.8090
(xiv) Reaping machines 8433.5900
(xv) Combined harvesters 8433.5100
(xvi) Pruner/shears 8433.5900
(v) Post-harvest handling and processing &
miscellaneous machinery
Equipment PCT Code
(i) Vegetables and fruits
cleaning and sorting or
grading equipment
8437.1000
(ii) Fodder and feed cube
maker equipment
8433.4000
(92) The provisions of section 148 shall not apply to.-
115
PCT Code
Aircraft, whether
imported or acquired on
wet or dry lease
8802.2000,
8802.3000,
8802.4000
Maintenance kits for use
in trainer aircrafts of
PCT headings
8802.2000 and
8802.3000
Respective
headings
Spare parts for use in
aircrafts, trainer aircrafts
or simulators
Respective
headings
Machinery, equipment
and tools for setting up
maintenance, repair and
overhaul (MRO)
workshop by MRO
company recognized by
Aviation Division
Respective
headings
Operational tools,
machinery, equipment
and furniture and fixtures
on one-time basis for
Respective
headings
116
setting up Greenfield
airports by a company
authorized by Aviation
Division
Aviation simulators
imported by airline
company recognized by
Aviation Division
Respective
headings
(93) The provisions of sub-section (1) of section 154 shall
not apply to taxpayers operating halal meat production and
qualifying for exemption under clause (126K) of Part-I of this
Schedule for the period specified in clause (126K).”;
(60) in the Fourth Schedule,—
(a) rule (6A) shall be omitted;
(b) in rule (6B),-
(i) for the Table, the following shall be substituted, namely:—
“S.No. Period Tax Year 2015 Tax Year 2016
(1) (2) (3) (4)
1. Where holding period of a
security is less than
twelve months
12.5% 15%
2. Where holding period of a
security is twelve months
10% 12.5%
117
or more but less than
twenty four months
3. Where holding period of a
security is twenty four
months or more but less
than four years
0% 7.5%”;
and
(ii) the proviso shall be omitted;
(c) after rule 6C, the following new rule shall be inserted, namely:—
“6D. The provisions of section 4B shall apply to the
taxpayers under this schedule and taxed at the rates
specified in Division IIA of Part I of the First Schedule.”;
(61) in the Fifth Schedule,—
(A) in Part I, after rule 4A, the following new rule shall be inserted,
namely:—
“4AA. The provisions of section 4B shall apply to the taxpayers
under this Part and taxed at the rates specified in Division IIA of
Part I of the First Schedule.”;
(B) in Part II, after rule 2, the following new rule shall be inserted,
namely:—
“2A. The provisions of section 4B shall apply to the taxpayers
under this Part and taxed at the rates specified in Division IIA of
Part I of the First Schedule.”;
118
(62) in the Seventh Schedule,—
(i) in rule 6, the expression “The net income from Dividend and net
income from Capital Gains on sale of shares of listed companies shall be
taxed at the rate of ten and twelve and a half, respectively” and the three
provisos thereafter shall be omitted;
(ii) rules (6A) and (6B) shall be omitted; and
(iii) after rule (7A), the following new rules shall be inserted, namely:-
“(7B) From tax year 2015 and onwards, income from Dividend and
income from Capital Gains shall be taxed at the rate specified in
Division II of Part I of First Schedule.
(7C) For tax year 2015, the provisions of section 4B shall apply to
banking companies and shall be taxed at the rate specified in
Division IIA of Part I of First Schedule.”; and
(63) in the Eighth Schedule, in rule 1, after sub-rule (7) , the following new subrule
shall be added, namely:—
“(8) The provisions of section 4B shall apply to the taxpayers under this
schedule and taxed at the rates specified in Division IIA of Part I of the
First Schedule.”;
6. Amendments of the Federal Excise Act, 2005. ─ In the Federal Excise Act,
2005, the following further amendments shall be made, namely:-
(1) In section 2, after clause (24), the following new clause shall be added,
namely:-
119
“(24A) “whistleblower” means whistleblower as defined in section 42D of
the Federal Excise Act, 2005”;
(2) in section 16,–
(a) in sub-section (2), after the word “may”, occurring for the first time,
the commas and words “, pursuant to the approval to the Economic
Coordination Committee of Cabinet, whenever circumstances exist
to take immediate action for the purposes of national security,
natural disaster, national food security in emergency situations,
protection of national economic interests in situations arising out of
abnormal fluctuation in international commodity prices, removal of
anomalies in duties, development of backward areas and
implementation of bilateral and multilateral agreements,” shall be
inserted;
(b) sub-section (3) shall be omitted;
(c) in sub-section (4), for the words, figures and brackets “sub-sections
(2) and (3)”, the word, figure and brackets “sub-section (2)” shall be
substituted; and
(d) after sub-section (4), amended as aforesaid, the following new subsections
shall be added, namely:–
“(5) The Federal Government shall place before the
National Assembly all notifications issued under this section
in a financial year.
120
(6) Any notification issued under sub-section (2)
after 1st July, 2015, shall, if not earlier rescinded, stand
rescinded on the expiry of the financial year in which it was
issued.”;
(3) in section 35, in sub-section (1), after the words “suo moto”, the commas
and words “, or otherwise” shall be inserted;
(4) after section 42C, a new section 42D shall be added, namely:–
“42D. Reward to whistleblowers.– (1) The Board may sanction reward to
whistleblowers in cases of concealment or evasion of duty, corruption or
misconduct providing credible information leading to such detection of
evasion of duty;
(2) The Board may, by notification in the official Gazette, prescribe the
procedure in this behalf and also specify the apportionment of reward
sanctioned under this section for whistleblowers;
(3) The claim for reward by the whistleblower shall be rejected if–
(a) the information provided is of no value;
(b) the Board already had the information;
(c) the information was available in public records; or
(d) no collection of duty is made from the information provided
from which the Board can pay the reward;
(4) For the purpose of this section, “whistleblower” means a person
who reports concealment or evasion of duty leading to detection or
collection of duty, corruption or misconduct, to the competent authority
121
having power to take action against the person or a federal excise
authority committing fraud, corruption, misconduct, or involved in
concealment or evasion of duty.”;
(5) in section 45A,-
(a) in sub-section (2), after the word “labels”, the word and comma
“barcodes,” shall be inserted; and
(b) (b) after sub-section (2), amended as aforesaid, the following new
sub-section shall be added, namely:–
“(3) Such tax stamps, banderoles, stickers, labels,
barcodes etc., shall be acquired by the registered person
referred to in sub-section (2) from a licensee appointed by
the Board for the purpose, against price approved by the
Board, which shall include the cost of equipment installed by
such licensee in the premises of the said registered person.”;
(6) in section 46,–
(a) in the heading, the word “Departmental” shall be omitted;
(b) for sub-section (4), the following shall be substituted, namely:–
“(1) The Board may appoint as many special audit
panels as may be necessary, comprising two or more
members from the following –
(a) an officer or officers of Inland Revenue;
(b) a firm of Chartered Accountants as defined under the
Chartered Accountants Ordinance, 1961 (X of 1961);
122
(c) a firm of Cost and Management Accountants as
defined under the Cost and Management
Accountants Act, 1966 (XIV of 1966); or
(d) any other person as directed by the Board,
to conduct audit of a registered person or persons, including
audit of refund claims and forensic audit and the scope of
such audit shall be determined by the Board or the
Commissioner Inland Revenue on a case-to-case basis. In
addition, the Board may, where it considers appropriate, also
get such audit conducted jointly with similar audits being
conducted by provincial administrations of sales tax on
services.”;
(c) after sub-section (4), substituted as aforesaid, the following new
sub-sections shall be inserted and the existing sub-section (5) shall
be re-numbered as sub-section (9), namely:–
“(5) Each special audit panel shall be headed by a
chairman who shall be an officer of Inland Revenue;
(6) If any one member of the special audit panel,
other than the chairman, is absent from conducting an audit,
the proceedings of the audit may continue and the audit
conducted by the special audit panel shall not be invalid or
be called in question merely on the ground of such absence.
123
(7) The Board may prescribe rules in respect of
constitution, procedure and working of special audit panel.
(8) Every member of the special audit panel shall
have the powers of officers of Inland Revenue under
sections 23 and 45 and sub-sections (1) to (3) of section
46.”;
(7) after section 47, the following new sections shall be inserted, namely:-
“47A. Agreements for the exchange of information.– (1) The
Federal Government may enter into bilateral or multilateral agreements
with provincial governments or with governments of foreign countries for
the exchange of information, including electronic exchange of information,
with respect to excise duty imposed under this Act or any other law of
Pakistan, or under the corresponding laws of that country and may, by
notification in the official Gazette, make such provisions as may be
necessary for implementing such agreements.
(2) The provisions of section 107 of the Income Tax Ordinance,
2001 (XLIX of 2001) shall, mutatis mutandis, apply to this section.
47B. Disclosure of information by a public servant.– (1) Any
information acquired under any provision of this Act or in pursuance of a
bilateral or multilateral agreement or tax information exchange agreement
shall be confidential and no public servant shall disclose any such
information, except as provided under section 216 of the Income Tax
Ordinance, 2001 (XLIX of 2001).
124
The provisions of section 216 of Income Tax Ordinance 2001 (XLIX of
2001) shall, mutatis mutandis, apply to this section.”;
(8) in the First Schedule,–
(a) in Table I, in column (1),–
(i) against serial numbers 4, 5 and 6, in column (4), for the word
“nine”, the word “twelve” shall be substituted;
(ii) for serial numbers 9 and 10 and the corresponding entries
relating thereto in columns (2), (3) and (4), the following shall
be substituted, namely:–
“9. Locally produced
cigarettes if their
on-pack printed
retail price exceeds
rupees three
thousand three
hundred and fifty
per thousand
cigarettes
24.02 Rupees three
thousand and
thirty per
thousand
cigarettes
10. Locally produced
cigarettes if their onpack
printed retail
price does not
exceed rupees three
24.02 Rupees one
thousand three
hundred and
twenty per
thousand
125
thousand three
hundred and fifty per
thousand cigarettes
cigarettes”;
; and
(iii) after serial number 55, a new serial number and entries
relating thereto in columns (2), (3) and (4) shall be added,
namely:–
“56. Filter rod for
cigarettes
5502.0090 Rupee 0.75
per filter rod”;
and
(b) in Table II, in column (1), against serial number 3, in column (2), in
clause (a), –
(i) sub-clause (iii) and the entry relating thereto in column (4)
shall be omitted; and
(ii) after sub-clause (iii), omitted as aforesaid, in the
Explanation, for the expression “, and “socio-economic
routes” means journeys along the Balochistan coastal belt”,
the expression “as defined in S. No. 9 of Table II of the Third
Schedule” shall be substituted;
(9) in the Third Schedule,-
(a) in Table I, in column (1), after S. No. 17 and the entries relating
thereto in columns (2) and (3), the following new S. Nos and the
126
corresponding entries relating thereto in columns (2) and (3) shall
be added, namely: –
“18 White cement 25.23
19 Motor cars and other motor
vehicles principally designed for the
transport of persons including
station wagons and racing cars of
cylinder capacity exceeding 850cc.
87.03”;
(b) in Table II, in column (1), after omitted S. No. 8 and the entries
relating thereto in columns (2) and (3), the following new S. Nos
and the corresponding entries relating thereto in columns (2) and
(3) shall be added, namely: –
“9 Services provided or rendered in
respect of travel by air of
passengers on “socio-economic
routes”, which means the shortest
part of journeys starting from or
ending at an airport located in
Makran coastal region, FATA, Azad
Jammu and Kashmir, Gilgit-
Baltistan or Chitral
98.03
10 Services provided or rendered in
respect of travel by air of
9803.1000
127
passengers on international
journeys from Pakistan to:
(a) Hajj passengers;
(b) Diplomats; and
(c) Supernumerary crew
11 Advertisements in newspapers and
periodicals
9802.4000
12 Services provided or rendered by
banking companies and nonbanking
financial companies in
respect of Hajj and Umrah,
cheque book, insurance,
Musharika and Modaraba financing
and utility bill collection.
98.13”.
STATEMENT OF OBJECTS AND REASONS
The purpose of this bill is to make financial provisions for the year beginning on the first
day of July, 2015 except sub-sections (8) and (9) of section 2 which shall have effect
from the next day of assent given to this Act by the President of the Islamic Republic of
Pakistan.
(MUHAMMAD ISHAQ DAR)
Minister for Finance and Revenue

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>