Updated: Monday March 30, 2015/AlEthnien Jamada El Thaniah 10, 1436/Somavara Chaitra 09, 1937, at 05:43:07 PM

The Finance Act, 2014 (along-with Bill, 2014)

 

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

WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2014, and to amend certain laws for the purposes hereinafter appearing;

It is hereby enacted as follows:-

 

1.                  Short title, extent and commencement. (1) This Act may be called the Finance Act, 2014.

(2)               It extends to the whole of Pakistan.

 

(3)               It shall, unless otherwise provided, come into force on the first day of July, 2014.

2.                  Amendments of Act IV of 1969. In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely:-

(1)               in section 2,-

 

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

 

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

(b)               clause (m) shall be omitted;

 

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

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

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

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

(5)               in section 25,-

 

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

 

(b)               in sub-section (6),-

 

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

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

 

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

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

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

 

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

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

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

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

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

 

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

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

 

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

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

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, in clause (27), for the semicolon at the end a colon shall be substituted, and thereafter the following proviso shall be added, namely:-

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

(2)              in section 3,–

 

(i)                 in sub-section (2),–

 

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

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

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

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

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

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

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

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

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

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

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

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

(5)              in section 7,–

 

(i)                 in sub-section (1),–

 

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

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

(ii)               in sub-section (2), after clause (iii), the following new clause shall be inserted, namely:–

“(iiia)  the goods and services against which input tax is claimed are,–

(a)               imported or purchased for the purpose of sale or re-sale by the registered person on payment of tax;

(b)               used directly as raw material, ingredient, part, component or packing material by the registered person in the manufacture or production of taxable goods;

(c)               electricity, natural gas and other fuel consumed directly by the registered person in his declared business premises for the manufacture, production or supply of taxable goods; or

(d)               plant, machinery and equipment used by the registered person in his declared business premises for the manufacture, production or supply of taxable goods.”;

(6)              in section 8, in sub-section (1),–

 

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

 

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

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

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

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

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

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

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

(8)              after section 50A, the following new section shall be inserted, namely:– 50B. Electronic scrutiny and intimation.– (1) The Board may

implement  a  computerized  system  for  the  purpose  of  automated scrutiny, analysis and cross-matching of returns and other available

data relating to registered persons and to electronically send intimations to such registered persons about any issue detected by the system.

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

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

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

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

 

“9.

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

 

10.

 

Petroleum Crude Oil (PCT heading 2709.0000).

 

11.

Raw  materials,  components,  sub-components  and  parts,  if imported or purchased locally for use in the manufacturing of

such plant and machinery as is chargeable to sales tax at the rate of zero percent, subject to the condition that the importer or purchaser of such goods holds a valid sales tax registration showing his registration category as “manufacturer”; and  in case of import, all the conditions, restrictions, limitations and procedures as are imposed by Notification under section 19 of the Customs Act, 1969 (IV of 1969), shall apply.

 

12.          The following goods and the raw materials, packing materials, sub-components, components, sub-assemblies and assemblies imported or purchased locally for the manufacture of the said goods, subject to the conditions, limitations and restrictions as specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007:–

(i)                 Colors in sets (PCT heading 3213.1000)

 

(ii)               Writing,       drawing       and       marking       inks        (PCT heading3215.9010 and 3215.9090)

(iii)             Erasers (PCT heading 4016.9210 and 4016.9290)

 

(iv)              Exercise books (PCT heading 4820.2000)

 

(v)                Pencil sharpeners  (PCT heading 8214.1000)

 

(vi)              Geometry boxes (PCT heading 9017.2000)

 

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

heading 96.08)

 

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

 

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

(x)                Yogurt            (PCT heading 0403.1000)

 

(xi)              Cheese (PCT heading 0406.1010)

 

(xii)            Butter (PCT heading 0405.1000)

 

(xiii)          Cream (PCT heading 04.01 and 04.02)

 

(xiv)          Desi ghee (PCT heading 0405.9000)

 

(xv)            Whey (PCT heading 04.04)

 

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

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

(xviii)      Fat filled milk (PCT heading 1901.9090)

 

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

 

(10)          in the Sixth Schedule,–

 

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

 

(a)               against serial number 24, in column (3), after the figure and comma, “1510.0000,” the figure and comma “1511.1000,” shall be inserted; and

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

(c)              

“72

Uncooked poultry meat

02.07

73

Milk and cream

04.01 and

 

04.02

74

Flavored milk

0402.9900

 

and 22.02

75

Yogurt

0403.1000

76

Whey

04.04

77

Butter

0405.1000

78

Desi ghee

0405.9000

79

Cheese

0406.1010

80

Processed cheese not grated or

 

powdered

0406.3000

81

Cotton seed

1207.2000

82

Frozen, prepared or preserved

sausages and similar products of poultry meat or meat offal

1601.0000

 

 
after serial number 71 and the entries relating thereto in columns (2) and (3), the following new serial numbers and entries relating thereto shall be added, namely:-

83

Meat and similar products of prepared frozen or preserved meat or meat offal of all types including poultry meat and fish

1602.3200,

 

1602.3900,

 

1602.5000,

 

1604.1100,

 

1604.1200,

 

1604.1300,

 

1604.1400,

 

1604.1500,

 

1604.1600,

 

1604.1900,

 

1604.2010,

 

1604.2020,

 

1604.2090,

 

1604.3000

84

Preparations for infant use, put up

 

for retail sale

1901.1000

85

Fat filled milk

1901.9090

86

Colours in sets (Poster colours)

3213.1000

87

Writing, drawing and marking inks

3215.9010

 

and 3215.9090

 

88

 

Erasers

 

4016.9210

 

 

and

 

4016.9290

89

Exercise books

4820.2000

90

Pencil sharpeners

8214.1000

91

Energy saver lamps

8539.3910

92

Sewing machines of the household type

8452.1010

and 8452.1090

93

Bicycles

87.12

94

Wheelchairs

8713.1000

and 8713.9000

95

Vessels for breaking up

89.08

96

Other    drawing,    marking    out    or

mathematical                      calculating instruments (geometry box)

9017.2000

97

Pens and ball pens

96.08

98

Pencils including colour pencils

96.09

99

Compost    (non-chemical     fertilizer)

 

produced and supplied locally

Respective

 

headings

100

Construction materials to Gawadar

Export Processing Zone’s investors and  to  Export  Processing  Zone

Respective headings

 

 

Gawadar      for      development      of

 

Zone’s infrastructure.

101

Raw and pickled hides and skins, wet blue hides and skins, finished leather,               and accessories, components and trimmings, if imported by a registered leather goods manufacturer, for the manufacture of goods wholly for export, provided that conditions, procedures and restrictions laid down in rules 264 to 278 of the Customs   Rules,   2001   are   duly

fulfilled and complied with.

Respective headings

102

Machinery, equipment and materials imported either for exclusive use within the limits of Export Processing Zone or for making exports therefrom, and goods imported for warehousing purpose in Export  Processing Zone, subject to the conditions that

such       machinery,       equipment,

Respective headings

 

 

materials and goods are imported by investors of Export Processing Zones, and all the procedures, limitations and restrictions as are applicable on such goods under the Customs Act, 1969 (IV of 1969) and  rules  made  thereunder  shall

mutatis mutandis, apply.

103

Import and supply thereof, up to the year 2020, of ships of gross tonnage of less than 15 LDT and all floating crafts including tugs, dredgers, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistan entity and flying the Pakistan flag, except ships or crafts acquired for demolition purposes or are designed or adapted for use for recreation or pleasure purposes, subject to the condition that such ships or crafts are used only for the

purpose    for   which    they    were

Respective headings

 

 

procured, and in case such ships or crafts are used for demolition purposes within a period of five years of their acquisition, sales tax applicable to such ships purchased for  demolition  purposes  shall  be

chargeable.

104

Substances registered as drugs under the Drugs Act, 1976 (XXXI of 1976) and medicaments as are classifiable under Chapter 30 of the First Schedule to the Customs Act, 1969 (IV of 1969) except the following, even if medicated or medicinal in nature, namely:-

(a)         filled infusion solution bags imported with or without infusion given sets;

(b)         scrubs,        detergents        and washing preparations;

(c)         soft soap or no-soap soap;

 

(d)         adhesive plaster;

 

(e)         surgical tapes;

Respective headings

 

 

(f)           liquid paraffin;

 

(g)         disinfectants; and

(h)         cosmetics           and           toilet preparations.

105

Raw materials for the basic manufacture of pharmaceutical active ingredients and for manufacture of pharmaceutical products, provided that in case of import, only such raw materials shall be entitled to exemption which are liable to customs duty not exceeding ten per cent advalorem, either under the First Schedule to the Customs Act, 1969 (IV of 1969) or under a notification issued under

section 19 thereof.

Respective headings

106

Import of Halal edible offal of bovine animals.

0206.1000,

 

0206.2000,

 

0206.8000

and 0206.9000

107

Import and supply of iodized salt

 

 

 

bearing brand names and

trademarks whether or not sold in retail packing.

108

Components or sub-components of energy saver lamps, namely:-

(a)   Electronic Circuit

 

(b)   Plastic Caps (Upper and Lower)

 

(c)   Base Caps B22 and E27

 

(d)   Tungsten Filaments

 

(e)   Lead-in-wire

 

(f) Fluorescent Powder (Tri Band Phospher)

(g)   Adhesive Additive

 

(h)   Al-Oxide Suspension

 

(i)   Capping Cement

 

(j)   Stamp Pad Ink

 

(k)   Gutter for Suspension

 

 

 

 

8539.9040

 

8539.9040

 

8539.9040

 

8539.9040

 

8539.9040

 

3206.5010

 

3824.9099

 

3824.9099

 

3214.1050

 

3215.9010

 

2850.0000

109

Goods imported temporarily with a view to subsequent exportation, as concurred by the Board, including passenger service item, provision and stores of Pakistani

Airlines.

Respective headings

 

 

110

The following items with dedicated use of renewable source of energy like solar and wind, subject to certification by the            Alternative             Energy Development Board (AEDB), Islamabad:-

(a)         Solar PV panels;

 

(b)         LVD induction lamps;

 

(c)         SMD, LEDs with or without ballast, with fittings and fixtures;

(d)         Wind turbines including alternators and mast;

(e)         Solar torches;

 

(f)           Lanterns and related instruments;

(g)         PV modules along with related components, including invertors,   charge   controllers

and batteries.

 

 

 

 

 

 

 

 

 

 

8541.5000

 

8539.3990

 

9405.1090

 

 

 

8502.3100

 

 

 

8513.1040

 

8513.1090

 

8541.4000,

 

8504.4090,

 

9032.8990

 

and 8507.0000

111

White crystalline sugar

1701.9910

 

and

 

 

1701.9920

112

Following               cardiology/cardiac

 

surgery,                        neurovascular, electrophysiology, endosurgery, endoscopy, oncology, urology, gynaecology, disposables  and other equipment:-

A.              ANGIOPLASTY PRODUCTS

1.            Coronary Artery Stents

 

2.            Drugs Eluting Coronary Artery Stents

3.            Coronary Artery Dilatation Catheters (Balloons)

4.            PTCA Guide Wire

 

5.            PTCA Guiding Catheters

6.            Inflation Devices/Priority Packs

B.             ANGIOGRAPHY PRODUCTS

1.                  Angiography

Respective headings

 

Catheters

 

2.                  Sheaths

 

3.                  Guide Wires

 

4.                  Contrast Lines

 

5.                  Pressure Lines

 

6.                  Mannifolds

 

C.             CONTRAST MEDIA FOR ANGIOGRAPHY/ ANGIOPLASTY

1.                  Angiography Accessories

2.                  ASD Closure Devices

 

3.                  ASD Delivery Systems

4.                  VSD Closure Devices

 

5.                  VSD Delivery System

 

6.                  Guide Wires

 

7.                  Sizing Balloons

 

8.                  Sizing Plates

 

9.                  PDA Closure Devices

 

10.              PDA Delivery system

 

D.                TEMPORARY PACEMAKERS       (with   leads,

connectors and accessories)

 

E.                 PERMANENT PACEMAKER         (with   leads, connectors and accessories)

F.                 HEART FAILURE DEVICES (with leads, connectors and accessories)

G.                IMPLANTABLE CARDIOVERTES           (with            leads, connectors and accessories)

H.                CARDIAC ELECTROPHYSIOLOGY PRODUCTS

1.                  Electrophysiology catheters

2.                  Electrophysiology cables

3.                  Electrophysiology connectors

I.                    LEAR              CARDIOLOGY PRODUCTS

1.                  Radioactive isotopes

 

2.                  Cold kits (Cardioloite

MAA, DTPA etc)

 

J.                  CARDIAC             SURGERY PRODUCTS

1.                  Oxygenators

 

2.                  Cannulas

 

3.                  Prosthetic Heart Valves

4.                  Luminal Shunts for heart surgery

5.                  Artificial limbs and appliances

K.                EQUIPMENT

 

1.                  Cardiac Angiography Machine

2.                  Echocardiography Machines

3.                  ETT Machines

 

4.                  Gamma Camera for Nuclear cardiology studies

L.                 PERIPHERAL INTERVENTIONS EQUIPMENT Disposables  and  other  equipment

 

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

adaptors.

113     High         Efficiency         Irrigation Equipment.

(If used for agriculture sector)

1)         Submersibl

 

75 lbs and head 1

e  pumps  (up  to      8413.7010

 

50 meters)

2)   Sprinklers   including    high    8424.8100 and low pressure (center pivotal) 8424.2010 system,     conventional     sprinkler

equipment, water reel traveling sprinkler, drip or trickle irrigation equipment, mint irrigation sprinkler

system.

3)         Air release valves, pressure      8481.1000,

gauges,  water  meters,  back  flow      8481.3000, preventers,           and          automatic     9026.2000,

 

 

controllers.

9032.8990

114

Green  House  Farming  and  Other Green House Equipment.

(If used for agriculture sector)

 

 

1)         Tunnel farming equipment.

8430.3100,

 

8430.3900

 

2)         Green                            houses

 

(prefabricated).

9406.0010

115

 

.

Plant, machinery and equipment imported for setting up fruit processing and preservation  units in Gilgit-Baltistan, Balochistan Province and Malakand Division subject to the same conditions and procedure as are applicable for import of such plant, machinery and equipment under the Customs Act,

1969 (IV of 1969).

Respective headings

116

 

.

Plant, machinery and equipment imported for setting up industries in FATA subject to the same conditions  and  procedure  as  are

applicable for import of such plant,

Respective headings.”;

machinery and equipment under the Customs Act, 1969 (IV  of 1969).

(ii)               in Table-2, in column (1),–

 

(a)               against serial number 3, for the entry in column (2), the following shall be substituted, namely:-

“Supplies made by cottage industry.”;

 

(b)              

“13

Reclaimed  lead,  if  supplied to recognized manufacturers

of lead batteries

Respective headings

14

Waste paper

Respective

 

headings

15

(a)             Sprinkler Equipment

(b)             Drip Equipment

(c)              Spray  Pumps  and nozzles

Respective headings

16

Raw     cotton     and     ginned

 

cotton

Respective

 

headings.”; and

 

 
after the already omitted serial number 12, the following new serial numbers and entries relating thereto shall be added, namely:-

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

 

Table-3

 

 

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

 

(i)                         the imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering Development Board. This condition shall, however, not be applicable in respect of S. Nos. 1, 13, and 15 of the Annexure; and for such machinery, equipment and other capital goods imported as plant for setting up of a new industrial units provided the imports are made  against valid contract(s) or letter(s) of credit and the total C&F value of such imports for the project is US $50 million or above;

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

(iii)                        in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for

the complete plant, duly supported by the contract, layout plan and drawings:

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

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

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

ANNEXURE

 

S.

 

No

Description

PCT

 

heading

Conditions

(1)

(2)

(3)

(4)

1.

Machinery and equipment for initial installation,

balancing, modernization,

Respective Headings

Nil

replacement or expansion of desalination plants, coal firing system, gas processing plants and oil and gas field prospecting.

2.              Following            machinery, equipment, apparatus, and medical, surgical, dental and veterinary furniture, materials, fixtures and fittings imported by hospitals and medical or diagnostic institutes:-

A.   Medical Equipment.

1)   Dentist chairs                           9402.1010

Locally manufactured goods of description as specified in column (2) and pre-fabricated buildings can also be imported upon fulfillment of the following conditions, namely:- (a) The project requirement shall be approved by the Board of Investment     (BOI).    The authorized officer of BOI shall

2)   Medical surgical dental or veterinary furniture

9402.9090

certify         the         item         wise requirement of the project in the

3)   Operating Table.                    9402.9010

4)   Operating Lights.                   9018.9090

prescribed format and manner as        per       Annex-B         and      shall

5)   Emergency Operating Lights.

6)   Hospital Beds with mechanical fittings

9405.4090

9402.9020

furnish all relevant information Online to Pakistan Customs Computerized System against a specific user ID and password

 

7) Gymnasium equipment.

9506.9100

obtained under Section 155D of

8) Cooling Cabinet.

8418.5000

the  Customs Act, 1969  (IV of

9) Refrigerated Liquid

3824.9099

1969);

Bath.

 

 

 

 

(b)     the     exception     shall     be

10) Contrast Media

3822.0000

 

 

 

available on one time basis for

Injections (for use in

 

 

 

 

setting up of new projects and

Angiography & MRI etc).

 

 

 

 

expansion of existing ones, and

11) Breathing Bags.

9020.0020

 

 

 

shall  not  be  available  on  the

12) Automatic blood cell

9018.9090

 

 

 

spare parts.

counter.

 

 

13). Automatic Cell

9018.9090

(c) only those importers shall be

Separator for preparation

 

eligible  to  avail  the  aforesaid

of platelets.

 

exception     whose     cases    are

B.   Cardiology/Cardiac

 

recommended and forwarded by

Surgery Equipment

 

BOI to FBR;

1) Cannulas.

9018.3940

 

 

2) Manifolds.

 

8481.8090

(d) the goods shall not be sold

 

3) Intravenous cannula i.v.

 

9018.3940

or otherwise disposed of without

 

catheter.

 

prior approval of  the FBR and

 

C.     Disposable Medical

 

the  payment  of  customs-duties

 

Devices

 

and taxes at statutory rates be

 

1) Self-disabling safety

 

9018.3110

leviable  at  the  time  of  import.

 

sterile syringes.

 

Breach of this condition shall be

2) Insulin syringes.                      9018.3110       construed as a criminal offence

 

3) Burettes.                                  7017.9000

 

E.    Other Related Equipments

1)   Fire extinguisher.                      8424.1000

under  the  Customs  Act,  1969 (IV of 1969)

2)   Fixtures & fittings for hospitals

Respective Headings

3.              1. Machinery, equipment, materials, capital goods, specialized vehicles (4x4 non-luxury) i.e. single or double cabin pickups, accessories, spares, chemicals and consumables meant for mine construction phase or extraction phase.

Respective Headings

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

Respective Headings

 

construction or extraction

 

phase.

4.

Coal mining machinery, equipment, spares, including vehicles for site use i.e. single or double cabin pick-ups, imported for Thar Coal Field.

Respective Headings

This concession shall be available to those mining companies or their authorized operators or contractors who hold permits, licenses, leases and who enter into agreements with the Government of Pakistan or a Provincial Government.

 

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

with prior approval of the Board.

 

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

 

2. Construction machinery, equipment and specialized vehicles,        excluding

passenger                vehicles, imported on temporary basis as required for the construction of project.

Respective Headings

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

 

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

 

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

 

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

 

the time of import;

 

 

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

 

6.

 

1.  Machinery,  equipment and spares meant for initial installation,           balancing, modernization, replacement or expansion of  projects         for          power generation     through     gas,

coal,      hydel,       and      oil

 

Respective Headings

 

-do-

 

 

including                       under construction projects.

 

2. Construction machinery, equipment and specialized vehicles,                excluding

passenger              vehicles, imported on temporary basis  as  required  for  the

construction of project.

7

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

 

2.   Construction machinery,

Respective Headings

-do-

equipment and specialized vehicles,        excluding

passenger                vehicles, imported on temporary basis as required for the construction of project.

 

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

8.              1.Machinery                     and equipment meant  for power transmission and grid stations including under                 construction projects.

 

Explanation.- For the purpose of this serial number, “machinery and equipment” shall mean,-

 

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

 

(b)     apparatus, appliances, metering and testing apparatus, mechanical and electrical       control, transmission    gear    and

Respective Headings

-do-

transmission tower, power transmission            and distribution cables and conductors, insulators, damper spacer and hardware and parts thereof adapted to be used in conjunction with the machinery and equipment as specified in clause (a) above; and

 

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

 

2. Construction machinery, equipment and specialized

vehicles,                 excluding

 

passenger                vehicles, imported on temporary basis as required for the construction of project.

9.              Following            machinery,

 

equipment      and      other

`

education and research related items imported by technical,           training

institutes,                 research

 

institutes,                  schools,

Nil

 

colleges and universities:-

 

1)    Quartz    reactor    tubes

7017.1010

and  holders  designed  for

 

insertion into diffusion and

 

oxidation      furnaces       for

 

production                           of

 

semiconductor wafers.

 

2) Other dryers

8419.3900

3)    Filtering    or    purifying

8421.2100

machinery  and  apparatus

 

for water

 

 

 

4)      Other       filtering       or

purifying     machinery     and apparatus for liquids

8421.2900

5)       Personal       weighing

machines,  including  baby scales; household scales

8423.1000

6)  Scales  for  continuous

weighing     of     goods    on conveyors

8423.2000

7) Constant weight scales and scales for discharging a predetermined weight of material into a bag or container, including hopper

scales

8423.3000

8) Other weighing machinery having a maximum                weighing capacity not exceeding 30

kg

8423.8100

9)          Other          weighing

machinery         having         a maximum                weighing

8423.8200

 

capacity exceeding 30 kg

 

but not exceeding 5,000kg

10)         Other         weighing

 

machinery

8423.8900

11) Weighing machine weights of all kinds; parts of weighing machinery of machines      of      heading

8423.2000 & 8423.3000

8423.9000

12) Other weighing machine weights of all kinds; parts of weighing machinery of machines of heading     8423.2000     &

8423.3000

8423.9000

13)                       Networking equipments like routers, LAN bridges, hubs excluding    switches    and

repeaters.

8517.6970

14)    Other    furnaces    and

 

ovens

8514.3000

15) Electronic balances of

9016.0010

 

a sensitivity of 5 cg or

better, with or without weights.

16)  Other  balances  of  a

sensitivity of 5 cg or better, with or without weights.

9016.0090

17) Thermostats of a kind

used  in  refrigerators  and air-conditioners

9032.1010

18) Other thermostats

9032.1090

19) Manostats

9032.2000

20) Other instruments and apparatus Hydraulic or

pneumatic

9032.8100

21) Other instruments and

 

apparatus

9032.8990

22) Parts and accessories of automatic regulating or controlling instruments and

apparatus

9032.9000

23)  Spares,  accessories,

and reagents for scientific equipments.

Respective Headings

10.            Machinery, equipment, raw materials, components and other capital goods for use in buildings, fittings, repairing or refitting of ships, boats or floating structures imported by Karachi Shipyard and Engineering         Works Limited.

Respective Headings

Nil

11.            Following machinery and equipment for marble, granite and gem stone extraction and processing industries:

1.       For the projects of Gem Stone & Jewelery Industry, CEO/COO, Pakistan Gem and Jewelery Company shall certify in  the  prescribed  format  and

1)              Polishing    cream     or material

2)      Hand  sharpening  and polishing stones.

3405.4000,

 

3405.9000

 

6804.3000

manner as per Annex-B that the imported goods are bonafide project requirement. The authorized     person     of     the

3)     Fiber glass mesh                    7019.5190

Company      shall      furnish      all

 

5)               Chain saw/diamond wire saw in all sizes and dimensions    and    spares

8202.4000,

 

 

8202.9100

relevant information online to Pakistan            Customs Computerized System against a

thereof, diamond wire joints all types and dimensions, chain for chain saw and diamond wires for wire saw and spare widia.

6)     Gin saw blades.                     8202.9910

specific user  ID  and password obtained under section 155D of the Customs Act, 1969.

 

2.      For the projects of Marble & Granite Industry, CEO/COO, Pakistan   Stone   Development

Company  shall  certify  in  the

 

7)                                     Gang saw blades/diamond saw blades/multiple blades or all types and dimensions.

8)                All interchangeable tools

9)       Air compressor (27 cft and above)

10)     Quarry winches (100 ton capacity and above.

11)         Quarry winches and electric motor jacks 30 ton capacity and above.

8202.9990

 

 

 

 

 

 

 

8207.9000

 

 

 

8414.8010

 

 

 

8425.3100

 

 

 

8425.3900

 

prescribed format and manner as per Annex-B that the imported goods are bonafide project requirement. The authorized persons of the Company shall furnish all relevant information online to Pakistan                                          Customs Computerized System against a specific user  ID  and password obtained under section 155D of the Customs Act, 1969.

12)     Quarry crane.                      8426.3000

 

13)     Fork lifter                             8427.9000

 

14)     Excavators                           8429.5900

3.       The goods shall not be sold or otherwise disposed of within

15)     Ultrasonic machine tools.

8456.2090       a  period  of  five  years  of  their import       except with    the       prior

16)     Sharpening machine.          8460.3900

approval     of     the     FBR      and

 

17)     All diamond saw machines, diamond tools and segments.

8464.1000

 

 

& Respective headings

payment of customs duties and taxes leviable at the time of import.

18)     Grinding machines.            8464.2010

 

19)   Polishing machines of all types and dimensions.

8464.2090

 

& Respective headings

20)   Other machine tools for working stones

8464.9000

21)     Pneumatic machines and tools.

8467.1100

22)     Horizontal and Vertical pneumatic line drilling machine. Pneumatic grinding machines.

8467.1900

 

23) Machine and tool for stone work; sand blasting machines;               tungsten carbide tools; diamond tools & segments (all type

& dimensions), hydraulic jacking                  machines, hydraulic manual press machines,            air/hydro pillows, compressed air rubber pipes, hydraulic drilling machines, manual and power drilling machines, steel drill rods and spring (all sizes and dimensions), whole finding system with accessories, manual portable rock drills, cross   cutter   and   bridge

cutters.

8464.9000

 

& Respective headings

24)     Integral  drilling  steel

for  horizontal  and  vertical drilling,    extension    thread

8466.9100

 

rods  for  pneumatic  super

long      drills,      tools      and accessories for rock drills.

12.

Machinery, equipment and other project related items including capital goods, for setting up of hotels, power generation plants, water treatment plants and other infrastructure              related projects located in an area of 30 km around the zero point in Gwadar.

Respective Headings

1.             Ministry of Industries, Production & Special Initiatives, shall certify in the prescribed manner and format as per Annex-B that the imported goods are bonafide project requirement. The authorized officer of the Ministry shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user  ID  and password obtained under section 155D of the Customs Act, 1969.

 

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

taxes  leviable  at  the  time  of

 

import.

13.

Effluent treatment plants

Respective headings

Nil

 

14.

 

Following items with dedicated use of renewable source of energy   like   solar,   wind,

geothermal etc:-

 

 

Nil

1.  Solar Home Systems.

 

a).  Inverters.

8504.4090

 

 

c). Charge controllers/current

controllers.

9032.8990

 

 

d). Energy saver lamps of varying voltages (operating

on DC).

8539.3910

 

 

e). Energy saver lamps of varying voltages (operating

on AC).

8539.3910

 

 

f). Light emitting diodes (light emitting indifferent

colors).

8541.5000

 

 

g). Water pumps operating

 

on solar energy.

8413.7090,

 

8413.7010

h). Water purification plants operating on solar

energy.

8421.2100

i) Batteries NiCd, Li-ion & Lead Acid specific utilization and integrated with solar electrification

system.

8507.3000

 

 

8507.8000

(j) Energy Saving Tube

 

Lights

8539.3920

2. Solar Parabolic

 

Trough Power Plants.

8502.3900

a).  Parabolic Trough

 

collectors modules.

8503.0010

b). Absorbers/Receivers

 

tubes.

8503.0090

c). Steam turbine of an

 

output exceeding 40MW.

8406.8100

d).    Steam turbine of an

output not exceeding 40MW.

8406.8200

 

e).    Sun tracking control

 

system.

8543.7090

f).  Control panel with

 

other accessories.

8537.1090

3. Solar Dish Sterling

 

Engine.

8412.8090

a). Solar concentrating

 

dish.

8543.7000

b).  Sterling engine.

8543.7000

c). Sun tracking control

 

system.

8543.7090

d).Control panel with

 

accessories.

8406.8200

e) Generator

8501.6100

4. Solar Air Conditioning

 

System

8415.1090

a).    Absorption chillers.

8418.6990

b).    Cooling towers.

8419.8910

c).    Pumps.

8413.3090

d).    Air handling units.

8415.8200

e).    Fan coils units.

8415.9099

f). Charging & Testing

 

equipment.

9031.8000

 

 

5.  Solar Desalination

 

System

8421.2100

a)    Solar photo voltaic

 

panels

8541.4000

b)    Solar water pumps

8413.3090

c)    Storage batteries.

8507.2090

d)    Charge controllers.

9032.8990

e)    Inverters.

8504.4090

6.  Solar Thermal Power

 

Plants with accessories.

8502.3900

7.  Solar Water Heaters

 

with accessories.

8419.1900

a)    Vacuum tubes (Glass).

7020.0090

b)    Selective coating for

 

absorber plates.

Respective

 

heading

c)    Copper, aluminum and

 

stainless steel sheets.

Respective

 

heading

d)    Copper and aluminum

 

tubes.

Respective

 

heading

8.  PV Modules

8541.4000

a). Solar cells.

8541.4000

b) . Tempered Glass.

7007.2900

c)    Aluminum frames.

7610.9000

 

 

d)    O-Ring.

4016.9990

e)    Flux

3810.1000

f)     Adhesive labels.

3919.9090

g)    Junction box + Cover

8538.9090

h) Sheet mixture of Paper

 

and plastic

3920.9900

i) Ribbon for PV Modules

 

(made of silver & Lead)

Respective

 

headings

j) Bypass diodes.

8541.1000

k) EVA (Ethyl Vinyl

 

Acetate) Sheet (Chemical).

3920.9900

9.  Solar Cell Manufacturing

Equipment.

a)    Crystal (Grower) Puller

 

(if machine).

8479.8990

b).  Diffusion furnace.

8514.3000

c)    Oven.

8514.3000

d). Wafering machine

8479.8990

e). Cutting and shaping

 

machines for silicon ingot.

8461.9000

f).  Solar grade polysilicon

 

material.

3824.9099

 

g). Phosphene Gas.

2848.0000

h).  Aluminum and silver

 

paste.

Respective

 

headings

9A  Pyranometers and

accessories for solar data collection

9030.8900

9B.  Solar chargers for

charging electronic devices

8504.4020

9C. Remote control for

 

solar charge controller.

8543.7010

10.  Wind Turbines.

8412.8090

a).  Rotor

8412.9090

b). Hub

8412.9090

c)    Generator

8501.6490

d) Deep cycle battery

8507.8000

10A.      Wind water pump

8413.8190

11.  Geothermal energy

 

equipments.

1).    Geothermal Heat

 

Pumps

8418.6100,

 

8418.6990

2).  Geothermal Reversible

 

Chillers

8418.6990

 

equipments

 

4).    Hydronic heat pumps

8418.6100

5).    Slim Jim heat

8419.5000

exchangers

 

6).    HDPE fusion tools

8515.8000

7).    Geothermal energy

8419.8990

 

 
3).    Air handlers for indoor quality         control

8415.8300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installation        tools and Equipment

8).     Dehumidification equipment

8479.6000

 

 

9).     Thermostats and

9032.1090

Intelli Zone

 

12. Any other item

 

approved by the

 

Alternative Energy

 

Development Board

 

(AEDB) and concurred to

 

by the FBR.

 

15.

Following items for

 

 

promotion of renewable

 

 

energy technologies

 

 

 
Nil

 

 

1. LVD induction lamps

8539.3990

 

 

2. SMD, LEDs with or

without ballast with fittings and fixtures.

9405.1090

 

 

3. Wind turbines including

 

alternators and mast.

8502.3100

 

 

4. Solar torches

8513.1040

 

 

5. Lanterns and related

 

instruments

8513.1090

 

 

6. PV module, with or without, the related components including invertors, charge controllers and batteries

8541.4000,

 

8504.4090,

 

9032.8990,

 

8507.0000

Subject to certification by AEDB that the inverters, charge controllers and batteries being imported are in quantities which commensurate    with    the    PV

modules being imported.

16

Plant,                   machinery, equipment and specific items used in production of bio-diesel.

Respective headings

The Alternative Energy Development Board (AEDB), Islamabad shall certify in the prescribed manner and format as per Annex-B that the imported goods are bonafide project requirement. The goods

shall  not  be  sold  or  otherwise

 

disposed of within a period of five years of their import except with the prior approval of the FBR and payment of customs duties and taxes leviable at the time of import.

Annex-A

 

Header Information

NTN/FTN of Importer

Regulatory  Authority no.

Name         of         Regulatory authority

(1)                                                    (2)

(3)

Details of  Input goods (to be filled by the chief executive of the importing company)

Goods                       imported (Collectorate of import)

HS Code

Descri ption

Sp ecs

Custom Duty rate (applic- able)

Sales Tax rate (appli cable)

WHT

Quantity

UO M

Quan tity impo rted

Collect orate

CR

 

N/

 

 

Ma ch No.

Date of CRN/

 

Mach

 

.

 

 

No.

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14

 

)

(15)

 

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

Signature of Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive Name                                                    

N.I.C.    No.                                                                            

 

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

Explanation.-

 

Chief Executive means.-

 

1.                  owner of the firm, in case of sole proprietorship; or

 

2.                  partner of firm having major share, in case of partnership firm; or

 

3.                  Chief  Executive  Officer  or  the  Managing  Director  in  case  of limited company or multinational organization; or

4.                  Principal Officer in case of a foreign company.

 

Annex-B

 

Header Information

NTN/FTN of Importer

Approval No.

 

(1)

 

(2)

 

Details of Input goods (to be filled by the authorized officer of the Regulatory Authority)

Goods imported  (Collectorate of import)

HS

 

Code

Descri ption

Specs

Custo m Duty rate (appli cable)

Sales Tax rate (appli cable)

WHT

Quantity

UOM

Quant ity import ed

Collec torate

CRN/

 

Mach. No.

Date of CRN/

 

Mach

 

 

No.

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(1

 

0)

(11)

(12)

(13)

(14)

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

Signature                                                             

 

Designation                                                          

 

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

(11)          after the Sixth Schedule, the following new Schedule shall be inserted, namely,-

EIGHTH SCHEDULE

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

 

Table-1

 

S.

 

No.

Description

Heading Nos. of the First Schedule to the Customs Act, 1969

(IV of 1969)

Rate of Sales Tax

Condition

(1)

(2)

(3)

(4)

(5)

1

Soyabean meal

2304.0000

5%

 

2

Oil      cake    and other              solid residues, whether          or         not ground or in the

form of pellets

2306.1000

5%

 

3

Directly       reduced

 

iron

72.03

5%

 

4

Oilseeds meant for sowing.

Respective headings

5%

Import  thereof  subject  to  the condition that Plant Protection

Department     of     Ministry     of

 

Food, Agriculture and Livestock certifies that the imported seeds are fungicide and insecticide treated and are

meant for sowing.

5

Raw     cotton     and

 

ginned cotton

Respective

 

headings

5%

On import

6

Plant                   and

 

machinery           not manufactured locally and having no          compatible local substitutes

Respective headings

5%

(i)           On import of such plant and machinery by registered manufacturers, post-dated cheque(s) equal to the differential amount of sales tax payable at import stage, shall be submitted to the customs            authorities, which shall be returned on furnishing proof of filing of first sales tax return after import of such machinery, showing the import of such machinery;

(ii)         On import by commercial

 

differential

amount

of

sales     tax

payable

at

 

 
importers, good-for- payment cheque, bank guarantee, pay order or treasury challan showing deposit,    equal    to   the import stage, shall be submitted to the customs authorities, which shall be returned back, or as the case may be, refunded, after evidence of subsequent supply to registered manufacturers or industrial users is furnished to the customs authorities;

(iii)       Supply of such imported plant and machinery by commercial importers to unregistered persons or persons      other      than

manufacturers     shall    be liable to standard rate of tax, and evidence to that effect  shall  be  produced to the customs authorities for           release       of        the abovementioned instruments  or  refund  of the amount paid at import stage;

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

(v)         the validity period of instruments furnished under this provision shall not   be   less   than   one

hundred and twenty days.

 

 

 

Explanation.––            For         the

 

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

Table-2

 

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

(i). the imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Board from time to time or, as the case may be, certified as such by the Engineering Development Board. This condition shall, however, not be applicable in respect of S. Nos. 1, 5 and 6 of the Annexure; and for such machinery, equipment and other capital goods imported as plant for setting up of a new industrial units provided the imports are made against valid contract(s) or letter(s) of credit and the total C&F value of such imports for the project is US $ 50 million or above;

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

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

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

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

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

Annexure

 

S.

 

No

Description

PCT heading

Conditions

(1)

(2)

(3)

(4)

1

Machinery and equipment for development of grain handling and storage

facilities.

Respective Headings

Nil

2

Cool chain machinery and

 

equipment.

Respective

 

Headings

Nil

3

 

 

 

.

Following items imported by Call Centers, Business Processing Outsourcing facilities duly approved by

Telecommunication

 

Nil

 

Authority.

1) UPS,

 

inverters/converters.

8504.4010

 

8504.4090

2) Fax machines

8443.3260

3) Photo copiers

8443.3910

4) IP Phones

8517.1890

5) Telephone sets/head

 

sets.

8517.1100

6) Dialers

8517.7000

7) Generator.

8502.1200

8) Cat 5/Cat 6/Power

 

cables

8544.4990

9) PAPX Switch

8517.6290

10) Multimedia projectors

8528.6110

11) Video conferencing

 

equipment.

8525.8090

12) CCTV

8525.8010

13) Plasma TV

8528.7212

14) PUD’s

8525.8090

15) Dedicated telephone exchange system for call

centers.

8517.6290

16. Parts, voice cards.

8517.7000

 

 

 

17.        Other    (digital    call

 

recorders)

8519.8990

 

 

18. VAST terminals

8525.6040

 

4

1.   Machinery, equipment, materials, capital goods, specialized vehicles (4x4 non luxury) i.e. single or double cabin pickups, accessories, spares, chemicals and consumables meant for mineral exploration phase.

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

Respective Headings

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

2.                               Temporarily imported goods shall be cleared against a security in the form of

a  post-dated  cheque

 

for the differential amount between the statutory rate of customs duty and sales tax and the amount payable under this notification, along with an undertaking to pay the customs duty and sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.

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

import. These shall however be allowed to be transferred to other entitled                mining companies  with  prior

approval of the Board.

5.

Complete plants for

 

relocated industries.

Respective

 

Headings

Nil

6.

Machinery, equipment and other capital goods meant for initial installation, balancing, modernization, replacement or expansion of oil refining (mineral oil, hydro- cracking and other value added petroleum products), petrochemical and                 petrochemical downstream products including fibers and heavy chemical                  industry, cryogenic      facility      for

ethylene     storage     and

Respective Headings

Nil

 

 

handling.

 

 

7.

 

 

Proprietary Formwork System                               for

building/structures of a height of 100 ft and above and its various items/ components  consisting  of

the following, namely:-

 

 

7308.4000

 

 

(i) If not manufactured locally and imported by the construction companies registered with the Pakistan Engineering Council;

 

1) Plastic tube.

3917.2390

(ii) the system is to be procured  from  a  well renowned international

manufacturer;

 

2) Plastic tie slot filters/plugs, plastic cone.

3926.9099

(iii)   a certificate from one  of  the  following International            Pre- shipment    Inspection Companies/Survey Firms   to    the    extent that            all          the components/parts  are

to    be    used    in    the

 

 

Proprietary  Formwork System                      for

construction                of structures/buildings of more than 100 feet height,   is   produced,

namely:-

3) Standard steel ply panels, Special sized steel ply panels, wedges, tube clamps (B-Type & G Type), push/pull props, brackets (structure), steel soldiers (structure), drop head, standard, prop tic, buard rail post (structure), coupler brace, cantilever frame, decking beam/Infill beam and doorway angles.

7308.4000

(a) Messrs Lloyds of London; (b) Messrs Quality   Tech,    LLC;

(c) Messrs ABS; (d) Messrs              Bureau

Veritas;             and (e) Messrs SGS; and (iv) The                  Pakistan Engineering Council shall certify that the imported Proprietary Formworks System conform to the requirement    of    the

Company’s project..

4) Lifting Unit (Structure)

7308.9090

-do-

 

 

5) Bolts, tie bolts, anchor

bolt assembly (fastener), anchor screw (fastener).

7318.1590

-do-

6) Nuts

7318.1690

-do-

7) Steel pins, tie wing nut

 

(fastener).

7318.1900

-do-

8) Steel washers, water

 

plate (fastener).

7318.2290

-do-

9) Special hammers

8205.2000

-do-

10) Extraction keys.

8205.5900

-do-

11) Adjustable base jack (thread rod with nut and steel plate), adjustable fork head (threaded rod with

nut and steel channel).

8425.4900

-do-

 

Annex-A

 

Header Information

NTN/FTN of Importer

Regulatory authority no.             Name of Regul

atory authority

(1)                                                        (2)                                             (

 

Details  of  Input  goods  (to  be  filled  by  the  chief        Goods importe executive of the importing company)                                    of import)

 

 

 
3)

 

d (Collectorate

 

HS Code

Descri ption

Sp ecs

Custo m Duty rate (applic

-able)

Sales Tax rate (appli cable)

WHT

Quantity

UO M

Quan tity impo rted

Collect orate

CR

 

N/ Ma ch No.

Date of CRN/

Mach. No.

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

(15)

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

Signature of Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive Name                                                    

N.I.C.    No.                                                                             

 

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

Explanation.-

 

Chief Executive means.-

 

1.                  owner of the firm, in case of sole proprietorship; or

 

2.                  partner of firm having major share, in case of partnership firm; or

3.                  Chief  Executive  Officer  or  the  Managing  Director  in  case  of limited company or multinational organization; or

4.                  Principal Officer in case of a foreign company.

 

Annex-B

 

Header Information

NTN/FTN of Importer

Approval No.

(1)                                             (2)

 

Details of Input goods (to be filled by the authorized officer of the Regulatory Authority)

Goods imported (Collectorate of import)

HS

 

Code

Descri ption

Specs

Custom Duty rate (applica ble)

Sales Tax rate (applic able)

WHT

Quantity

UOM

Quantity imported

Collect orate

CRN

 

/Mac h.

No.

Date of CRN

/ Mac h No.

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

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

Signature                                                           _ Designation        

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

(11)     After the Eighth Schedule, inserted as above, a new Ninth Schedule

 

shall be added, namely,-

 

NINTH SCHEDULE

 

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

 

TABLE

 

(1)

(2)

(3)

Description / Specification of Goods

Sales tax payable at the time of import

Sales tax payable at the time of registration of a new International Mobile Equipment Identity (IMEI) number

A.                 Low Priced Cellular Mobile Phones or Satellite Phones

i.                    All cameras: 2.0 mega-pixels or less

ii.                  Screen size: 2.6 inches or less

 

iii.                Key pad

Rs. 150 per phone

Rs. 250 per registration

B.                 Medium Priced Cellular Mobile Phones or Satellite Phones

i.                    One or two cameras: between

Rs. 250 per phone

Rs. 250 per registration

 

2.1 to 10 mega-pixels

 

ii.                  Screen size: between 2.6 inches and 4.2 inches

iii.                Micro-processor: less than 2

 

GHZ

C.                Smart Cellular Mobile Phones or Satellite Phones

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

ii.                  Touch Screen: size 4.2 inches and above

iii.                4GB or higher Basic Memory

 

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

v.                   Micro-processor: 2GHZ or

 

higher, dual core or quad core

Rs. 500 per phone

Rs. 250 per registration

 

LIABILITY, PROCEDURE AND CONDITIONS

 

i.            The liability to pay sales tax at the time of import of cellular mobile phones or satellite phones shall be on the importer, and the liability to pay sales tax at the time of registration of a new International Mobile

Equipment Identity (IMEI) number for the first time shall be on the Cellular Mobile Operator who registers the IMEI number in his system.

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

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

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

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

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

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

viii.                         Notwithstanding anything contained in any other law for the time being in force, the levy, collection and payment of sales tax under Notification No.

S.R.O. 460(I)/2013 dated the 30th May, 2013, shall be always deemed to have

been lawfully and validly, levied, collected and paid in accordance with sub- section (3B) of section 3 of the Sales Tax Act, 1990.

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

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

5.                  Amendment of Ordinance (XXIV of 2001). In the Controller General of Accounts (Appointments, Functions and Powers) Ordinance, 2001 (XXIV of 2001), in section 5, in clause (b), ─

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

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

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

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

(1)               in section 2,-

 

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

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

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

(c)               in clause (29),-

 

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

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

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

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

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

 

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

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

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

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

(2)               section 4A shall be omitted;

 

(3)               in section 8,-

 

(i)                 in clause (d), for the word “sections”, the word “section” shall be substituted;

(ii)               in clause (e), for the word “sections”, the word “section” shall be substituted.

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

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

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

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

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

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

 

(a)               first proviso shall be omitted;

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

 

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

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

“(4) For the purpose of this section, “debt securities” means-

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

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

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

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

 

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

 

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

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

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

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

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

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

(14)          section 88A shall be omitted;

 

(15)          in section 92, in sub-section (1), for full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added,

namely,-

 

“Provided that if at least one member of the association of persons is a company, the share of such company or companies shall

be excluded for the purpose of computing the total income of the association of persons and the company or the companies shall be taxed separately, at the rate applicable to the companies, according to their share.”;

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

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

 

(17)          after section 100B, the following new section shall be inserted, namely:- 100C.           Tax                credit for          certain              persons.-      (1)    Non-profit organizations, trusts or welfare institutions, as mentioned in sub-section

(2)   shall be allowed a tax credit equal to one hundred per cent of the tax payable, including minimum tax and final taxes payable under any of the provisions of this Ordinance, subject to the following conditions, namely:-

(a)               return has been filed;

 

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

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

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

 

(a)               any income of a trust or welfare institution or non-profit organization from donations, voluntary contributions, subscriptions,   house   property,   investments   in   the

securities of the Federal Government and so much of the income chargeable under the head "income from business" as is expended in Pakistan for the purposes of carrying out welfare activities:

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

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

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

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

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

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

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

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

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

pursuance of this proviso.

 

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

this clause, to be for religious or charitable purposes; or

 

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

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

(18)          in section 113,-

 

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

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

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

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

(2)               For the purposes of this section.-

 

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

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

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

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

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

(5)               If the excess tax, as mentioned in sub-section (4), is not wholly adjusted, the amount not adjusted shall be carried

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

 

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

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

 

(7)               For the purposes of determining the “Accounting Income”, expenses shall be apportioned between the amount to be excluded from accounting income under sub-section (8) and the amount to be treated as taxable income under sub-section (2).

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

(i)                      exempt income;

 

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

(iii)                     income subject to tax credit under section 65D and 65E.

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

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

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

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

(21)          in  section  122B,  for  the  words  “Regional  Commissioner”,  wherever occurring, the words “Chief Commissioner” shall be substituted.

(22)          in section 127,-

 

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

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

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

 

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

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

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

(24)          in section 148,-

 

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

 

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

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

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

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

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

“(3)                                                      Notwithstanding anything contained in sub-sections

 

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

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

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

(27)          in section 151,

 

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

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

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

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

 

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

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

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

(30)        in section 159, in sub-section (4), for the word “one”, the word “on” shall be substituted;

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

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

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

(33)          in section 203, in sub-section (i), for full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-

“Provided that the Federal Government may, by, notification in official Gazette, declare that a special judge appointed under section 185 of the Customs Act 1969 (IV of 1969) shall have jurisdiction to try offences under this Ordinance.”;

(34)          for section 231B, the following shall be substituted, namely:-

 

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

(2)               Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of

transfer of registration or ownership of a private motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule.

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

(4)               Sub-section (1) shall not apply if a person produces evidence that tax under sub-section (2) in case of a locally manufactured vehicle or tax under section 148 in the case of imported vehicle was collected from the same person in respect of the same vehicle.

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

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

(a)               the Federal Government;

 

(b)               a Provincial Government;

 

(c)               a Local Government;

 

(d)               a foreign diplomat; or

 

(e)               a diplomatic mission in Pakistan.”;

 

(35)          after section 235, the following new sections shall be inserted, namely:- 235A.            Domestic  electricity  consumption.-  (1)  There

shall be collected advance tax at the rates specified in Division XIX of

Part IV of  the  First Schedule on the  amount of  electricity bill  of  a domestic consumer.

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

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

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

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

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

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

(36)          in section 236B,-

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

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

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

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

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

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

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

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

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

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

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

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

236M. Bonus shares.- (1) Every person issuing bonus shares to a shareholder of the company, shall collect tax at the rate of five per cent on the value of the bonus shares determined on the basis of day-end price on the first day of closure of books.

(2)               The company issuing bonus shares shall make adequate arrangements for collection of such tax and in case of default, said tax shall be collected from the company, without prejudice to any other liability which it may incur under this Ordinance.

(3)               Tax required to be collected under this section shall be a final tax on the income of the shareholder of the company arising from issuance of bonus shares.”;

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

(39)          in the FIRST SCHEDULE,-

 

(I)                  in Part I,-

 

(A)              in Division I,-

 

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

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

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

(ii)               a taxpayer of the age of not less than sixty years on the first day of that tax year,

the  tax  liability  on  such  income  shall  be reduced by 50%.”;

(ii)               paragraph (2) shall be omitted.

 

(B)              For Division III, the following shall be substituted, namely:-

 

“Division III

 

Rate of Dividend Tax

 

 

The rate of tax imposed under section 5 on dividend received from a company shall be -

 

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

 

(b)               10%, in all other cases:

 

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

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

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

“TABLE

 

S.No.

Period.

Tax Year.

Rate of tax.

(1)

(2)

(3)

(4)

1.

Where holding period of a security is less than six months.

2011

 

2012

 

2013

 

2014

10%

 

10%

 

10%

 

10%

2.

Where holding period of a security is more than six months but less than

twelve months.

2011

 

2012

 

2013

 

2014

7.5%

 

8%

 

8%

 

8%

TAX YEAR 2015

3.

Where holding period of a  security  is  less  than

twelve months.

12.5%

 

4.

Where holding period of a security is twelve months or more but less

than twenty-four months.

10%

 

5.

Where holding period of

 

a security is twenty-four

0%

 

months or more.”

 

 

 

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

“3. Where holding period of                              0% immovable property is more

than two years.”;

 

(E)              after Division VIII, amended as aforesaid, the following new Division shall be added, namely,-

“Division  IX

 

Minimum tax under section 113

 

S.No

Person(s)

Minimum Tax as percentage  of the person’s turnover for the year

(1)

(2)

(3)

1.

(a)    Oil marketing companies, Oil refineries, Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited ( for the cases where annual turnover exceeds

0.5%

 

 

 

rupees one billion.);

 

(b)        Pakistan International Airlines Corporation; and

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

 

2.

(a)        Distributors of pharmaceutical products, fertilizers and cigarettes;

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

(c)         Rice mills and dealers; and

 

(d)        Flour mills.

0.2%

3.

Motorcycle dealers registered under the Sales Tax Act, 1990.

0.25%

4.

In all other cases.

1%

 

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

 

“PART-II

 

RATES OF ADVANCE TAX

 

[See Division II of Part V of Chapter X]

The rate of advance tax to be collected by the Collector of Customs under section 148 shall be-

S.No.

Persons

Rate

(1)

(2)

(3)

1.

(i)                 Industrial undertaking importing remeltablesteel (PCT Heading 72.04) and directly reduced iron for its own use;

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

(iii)             Persons importing urea; and

 

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

1% of import value as increased by customs- duty, sales tax and federal excise duty

2.

Persons importing pulses

2% of import value as increased by customs- duty, sales tax and

 

 

 

Federal excise duty

3.

Commercial importers covered under Notification No.

 

S.R.O. 1125(I)/2011 dated the 31st December, 2011.

3% of import value as increased by customs- duty, sales tax and federal excise duty

4.

Ship breakers on import of ships

4.5%

5.

Industrial undertakings not covered under S. Nos. 1 to 4

5.5%

6.

Companies not covered under S. Nos. 1 to 5

5.5%

7.

Persons not covered under S. Nos. 1 to 6

6%

(III)               Part IIA shall be omitted;

 

(IV)            in Part III,-

 

(a)        for Division I, the following shall be substituted, namely:-

 

“Division I Advance Tax on Dividend

The rate of tax to be deducted under section 150 shall be-

 

(a)               7.5% in the case of dividends declared or distributed by purchaser of a power project privatized by WAPDA or on

shares of a company set up for power generation or on shares of a company, supplying coal exclusively to power generation projects;

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

 

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

 

 

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

 

 

Stock Fund

Money market Fund, Income Fund or any other fund

Individual

10%

10%

Company

10%

25%

AOP

10%

10%

 

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

 

Division IA

 

 

Profit on Debt

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

 

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

 

(b)               in Division III,-

 

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

 

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

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

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

 

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

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

(C)             in paragraph (3),-

 

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

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

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

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

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

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

(V)              in Part IV,-

 

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

 

Division II Brokerage and Commission

The rate of collection under sub-section (1) of section 233 shall

 

be.-

 

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

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

 

(b)               in Division III,-

 

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

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

 

S

 

No.

Engine capacity

for filers

for non-filer

(1)

(2)

(3)

(4)

1.

upto 1000cc

Rs. 1,000

Rs.1,000

2.

1001cc to 1199cc

Rs. 1,800

Rs. 3,600

3.

1200cc to 1299cc

Rs. 2,000

Rs.4,000

4.

1300cc to 1499cc

Rs. 3,000

Rs.6000

5.

1500cc to 1599cc

Rs 4,500

Rs 9,000

6.

1500cc to 1999cc

Rs. 6000

Rs.12,000

7.

2000cc & above

Rs. 12,000

Rs.24,000”

 

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

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

S

 

No.

Engine capacity

for filer

for non-filer

(1)

(2)

(3)

(4)

 

 

1.

upto 1000cc

Rs. 10,000

Rs.10,000

2.

1001cc to 1199cc

Rs. 18,000

Rs. 36,000

3.

1200cc to 1299cc

Rs. 20,000

Rs.40,000

4.

1300cc to 1499cc

Rs. 30,000

Rs.60,000

5.

1500cc to 1599cc

Rs 45,000

Rs 90,000

6.

1600cc to 1999cc

Rs. 60,000

Rs.120,000

7.

2000cc and above

Rs. 120,000

Rs.240,000”

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

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

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

“Division VII

 

Advance tax on purchase of private motor car and jeep The  rate  of  tax under  sub-sections  (1),  (2)  and  (3) of section 231B shall be as follows:–

S. No.

Engine Capacity

Tax for filer

Tax for

 

 

 

 

 

 

Non-filer

(1)

(2)

(3)

(4)

1.

Upto 850cc

Rs. 10,000

Rs. 10,000

2.

851cc to 1000cc

Rs. 20,000

Rs. 25,000

3.

1001cc to 1300cc

Rs. 30,000

Rs. 40,000

4.

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

9.

Above 3000cc

Rs.250,000

Rs. 450,000”

“;

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

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

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

“Division XVIII

 

Advance tax on purchase of immovable property The rate of tax to be collected under section 236K

shall be:-

 

 

S.No

Period

Rate of Tax

(1)

(2)

(3)

1.

Where value of Immovable property is up to 3 million.

0%

2.

Where the value of Immovable property is more than 3 million

Filer

 

1%

Non-Filer        2%

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

Division XIX

 

Advance tax on domestic electricity consumption

 

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

 

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

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

Division XX

 

Advance tax on international air ticket

 

The rate of the rate of tax to be collected under section 236L shall be:-

 

S. No.

Type of Ticket

Rate

 

(1)

(2)

(3)

(4)

 

 

Filer

Non- Filer

1.

Economy

0%

0%

2.

First/Business/Club class

3%

6%”

(40)          in the SECOND SCHEDULE,-

 

(I)                  in Part I,

 

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

(b)               clause (35) shall be omitted;

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

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

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

 

(e)               in clause (66),

 

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

 

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

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

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

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

 

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

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

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

“(126) Any income derived by a public sector university”

 

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

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

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

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

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

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

(l)                  clause (135) shall be omitted;

 

(II)                in Part II,-

 

(a)               in clause (3),-

 

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

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

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

 

be omitted;,

 

(c)        after clause (18), the following new clause shall  be inserted, namely:-

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

set up or commercial production is commenced, whichever is later:

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

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

(III)               in Part III,-

 

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

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

 

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

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

(d)       Clause (5), (7), (8), (9), (10), (11), (12), (13), (14) and clause (15)

 

shall be omitted;

 

(IV)            in Part IV,-

 

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

“(9A) Provisions of clause (a) of sub-section (1) of section 153, shall not apply to steel melters , steel re-rollers , composite

steel units, as a payer, in respect of purchase of scrap, provided that tax is collected in accordance with section.

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

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

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

 

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

“and clause (132B)”;

 

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

 

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

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

 

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

“(56B) The provisions of sub-section (7) of section 148, and clause (a) of sub-section (1) of section 169 shall not apply to a person being a commercial importer if the person opts to file return of total income along with accounts and documents as may be prescribed, subject to the condition that minimum tax liability under normal tax

regime shall not be less than 5.5%, of the imports, if the person is a company and 6% otherwise.

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

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

(56E) The provisions of sub-section (2) of section 153 and clause (a) of sub-section (1) of section 169 shall not apply in respect of a person if the person opts to file return of total income along with accounts and documents as may be prescribed subject to the condition that minimum tax

liability under normal tax regime shall not be less than 0.5% of gross amount of services received.

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

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

(h)               in clause 57,-

 

(i)                 the following new explanation shall be added, namely:- Explanation.- For the removal of doubt, exemption

under this clause, in respect of section 153, shall only be available as a recipient and not as withholding agent.”;

(ii)               in clause (57), in sub-clause (vi), for the words,  “with Sales Tax Department” the words, comma and figure “under the Sales Tax Act, 1990” shall be substituted;

(i)                 clauses (80), (84), (85), (87) and (88) shall be omitted;

 

(41)          in the THIRD SCHEDULE, in Part II, in clause (1), for the figure “25”, occurring for the second time, the figure “10” shall be substituted; and

(42)          in the SEVENTH SCHEDULE,-

 

(A)              in rule 6,-

 

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

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

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

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

(A/C) x B

 

where-

 

A is the total amount of expenditure as per this Schedule; B is the gross amount of dividend received; and

C is the gross amount of receipts including dividend.

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

(A/C) x B

 

where-

 

A is the total amount of expenditure as per this Schedule; B is the gross amount of capital gains; and

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

 

7.                  Amendments of the Federal Excise Act, 2005. In the Federal Excise Act, 2005, the following further amendments shall be made, namely:-

(1)               in section 13, in sub-section (4), in the proviso, for the full stop, at the end, a colon shall be substituted and thereafter, the following new proviso shall be added, namely:-

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

(2)               in the First Schedule,–

 

(a)               in Table I, in column (1),–

 

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

“9.    Locally            produced cigarettes  if  their  on-

24.02     Rupees                    two thousand six hundred

 

 

pack printed retail price exceeds rupees two thousand seven hundred  and  six  per

thousand cigarettes

 

and    thirty    two    per thousand cigarettes.

10.

Locally produced cigarettes if their on- pack printed retail price does not exceed rupees two thousand seven hundred and six per                  thousand

cigarettes

24.02

Rupees                  one thousand and eighty five per thousand cigarettes.”;

 

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

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

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

(b)               in Table-II, in column (1),–

(i)                 against S. No. 3, in column (2), in entry (b),

 

(a)               against sub-entry (i), in column (4), for the words “Three thousand eight hundred and forty” the words “Five thousand” shall be substituted; and

(b)               against sub-entry (ii), in column (4), for the words “Six thousand eight hundred and forty” the words “Ten thousand” shall be substituted;

(ii)               against S. No. 6,–

 

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

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

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

“15.                                                    Chartered flights                    98.03        Sixteen per

 

cent of the charges.”.

8.                  Amendment of Act XXI of 2011.─ In the Gas infrastructure Development Cess Act, 2011 (XXI of 2011), the following further amendments shall be made namely:-

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

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

(2)               in the First Schedule,─

 

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

 

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

“6.       Oil and Gas Development Company Limited; and

 

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

(3)               for the Second Schedule, the following shall be substituted, namely:- “THE SECOND SCHEDULE

[See Section 3]

 

Maximum

 

S.

 

No.                                               Sector

Rate of Cess (Rs/MMBTU)

(1)

(2)

(3)

1.

Fertilizer Feed Stock

300

2.

Fertilizer Fuel Stock

300

3.

Compressed Natural Gas (CNG)

300

4.

Industrial

300

5.

Captive Power

300

6.

WAPDA / KESC / GENCOs

300

7.

Independent Power Plants (IPPs)

300

8.

Commercial including Ice Factories

300

9.

Cement

300

10.

Liberty Power Plant

-

11.

Domestic

-.”.

9.                  Repeal of Income Support Levy Act of 2013.- The Income Support Levy Act, 2013 is hereby repealed.

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, 2014. Various provisions have been explained in the Notes on Clauses.

 

 

(MUHAMMAD ISHAQ DAR)

Minister for Finance and Revenue


EXTRAORDINARY PUBLISHED BY AUTHORITY

 

ISLAMABAD,  THURSDAY, JUNE 26, 2014

 

 

PART !

 

Acts, Ordinances,President's Orders and  Regulations NATIONAL ASSEMBLY  SECRETARIAT

Islamabad, the 26/h Jzme, 20J4

 

No. F. 22 (11)12014-Legis.-The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 25th June, 2014 and is hereby published for general information:-

 

ACI No. !X OF 20 14

 

An Act togive ejfecl to 1hefin.ancial proposals of 1he Federal Government for the year beginning on thefirs/  day of July. 2014 and to amend and enact certain  lalvs

 

WHEREAS it is expedient to make provisions to give effect to the financial proposa ls of the Federal Government for the year beginni ng on the first day of July, 2014 and to amend ce1tain laws for the purposes herei nafter appearing;

 

It is hereby enacted as follows:---

 

1.          Short title,  extent  and  commencement.-{I) This  Act  may  be called the Finance Act, 2014.

 

4.          It extends to the whole of Pakistan.

 

5.          lt shall come  into  force  from  the  first day of Ju ly, 2014,  except sub-sections (11) and (12) of section 2 and sub- sections (2), (9), (10), (I 1) <\nd

(13)of section 4 which shall have effect from cbe next day of assent given to th is Act by the President of the Islam ic Republic of Pakistan.

 

2.     Amendments of Act IV of 1969. - In the Customs Act, 1969

(IV of   I 969), the following further  amendments shal l  be made,  namely:-

 

(12)   in section 2,-

 

(i)          for clause (k), the following sha ll be substituted, namely:-

 

"(k) "custon1s-station'' means any custorns-statlon, customs-airport, an inland river po1t, land  customs­ station  or any place declared as such under section 9;";

and

 

(b)      clause (m) shall be omitted;

 

(a)        in section 7, for the word "Central", the word  "Federal" shall be substituted;

 

(b)        in section 18, after sub-section (I), the following new sub-section shall be inserted, namely:-

 

"( I A)       otwithstanding anythi ng contained in su b-section (I), customs duties shall be levied  at such rates on import of gpods or class of goods as are prescribed in the Fifth Schedu le, subject to such conditions, limitations and  restrictions as prescribed therein.' ;

 

(c)        in section J 8A, for the words, figures and brackets "Central Excis<?S and Sa lt Act, I 944 (I of I 944)'', the words and figures "t he Federal  Excise Act, 2005" shall be substituted;

 

(d)        in section 25,-

 

(i)          in sub-sect.ion (5), clause (d) shall be om itted; and

 

(ii)        in sub-section (6),-

 

          for the com ma, occurring  for  eighth  time, the word "and"sha ll be substituted ; a11d

 

             the word, letter and brackets "and (d)" sha U be omitted;

 

(j)           in section 32, in sub-sections (2), (3) and (3A), after the word "duty", the comma and word ".taxes" shall be inserted;

 

(k)         in section 80, i n sub-section (3),after the word "duty", the comma and the words ", taxes and other charges levied thereon" shal l be inserted;

 

(5)        in section 81, in sub-section (!),-

 

            in the first proviso, after the word '' duty", the comma and words ", taxes and other charges"sha l l be inse11ed;and

 

{b)               in the second proviso, for the word "tax", the words "laxes and other charges"shall be substituted;

 

(6)        in section 1858, for clause (a), the followi ng shall be su bstituted, namely:-

 

"(a)  no court other than the Special Judge havingjurisdiction shall try an o!Tence punishable under this f\ct, except the offences relating to narcotics and narcotic substances wh ich shal l be tried by the Special Courts establishe:d under the Control of Narcotic Substances Act, 1997 (XXV  of 1997);";

 

(7)            in section 194, in sub-sect.ion (3),-

 

           for  the  words "Customs  and  Exci:se Group", the  words "Pakistan Customs Service"shall be s·ubstituted ; and

 

            for the word "five",the word "three" s:hall be substitu ted;

 

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

 

13.          the provisions in the Second Schedule to this Act shall be added as the Fifth Schedu le to tbe Customs Act, J 969 (IV of 1969).

 

3.      Amendment  of  Act  XXVU  of  1974.--  In  the  Members  of Parliament (Sa laries and Allowances) Act, 1974 (XX VH of 1974), in section 4, in  sub-section (I),for t he  words "seven  hundred  and  fitly", the words "two thousand" shall be substituted.

 

4.     Amendments of the Sales Tax Act, 1990.- In the Sales Tax Act,

1990, the following fu1ther amendments shall he made, namely:-

 

(I) in section 2, in clause (27), for the semicolon at the eod a colon shall be substituted, and thereafter the following proviso shall be added,  namely:-

 

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

 

(i)          in section 3,-

 

           i n sub-section (2),-

 

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

 

            atler clause (a), amended as aforesaid, the following

new clause (aa) shall be inserted, namely:-

 

"(aa) goods specified in the Eigh th Schedule shall be charged to tax at such rates and subject  to  such cond itions and limitations as specified · therein; and";

 

            after sub-section (3A), the following new sub-section shall be inse11ed,   namely:-

 

"(38)  Notwithstanding anyth ing contained in   sub· sections (I) and (3),sales tax on the import and supply of the goods specified in the Ninth Schedule to this Act shall be charged.collected and paid at the rates, in the manner, at the time, and subject to the procedure and cond itions as specified therein or as may he prescribed, and the liability to charge, collect and pay the tax shall be on the persons specified therein.';

 

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

 

"(8) Notwithstanding anything contained in any law or notification made thereunder, in case of supply of natural gas

to CNG stations, the Gas Transmis.sion and Distrib11tion Company shall charge sales tax from t he CNG stations at the rate of seventeen per cent of the value of supply to the CNG consumers, as notified by the Board Jrom time to time, but excludiog the amount of tax, as provided in clause (46) of section 2. '

 

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

 

"(9) Notwithstanding anything c•ontained in sub-section (I ), tax shall be charged from retailers through their monthly electricity bi lls,at the rate of five per cent where the moothly bill amount does not exceed rupees twenty thousand and at the rate of seven and half per cent where the monthly bill amount exceeds the aforesaid amount, su bject to the exclusions, proced ure, restriction s and limitations as prescribed in Chapter II of the Sale.s Tax Special Procedure Rul es,2007:

 

Provided that the tax under this sub-section shall lie in addition to the tax payable on supply eof electricity under sub­ sections (1),(I A) and (5).";

 

(f)          in section 3B, for sub-section (2), th• following shall be substituted and shall be deemed to have been always sosubstituted, namely:-

 

"(2) Notwithstanding anything contained in any law or judgment of a court, including the Supreme Court and a High Court, any amount payable to the Federal Govern ment under sub­ section (I) shall be deemed tO be an arrear cf tax or charge payable

u nder this Act and shall be recoverable acc•ordingly and any claim for refund in respect of such amount shall neither be admissible to the registered person nor payable to any <:ourt of law or to any person under direction of the comt.";

 

(g)        i n section 4, in clause (d), for the words "zero-rated goods", the words "go(lds al reduced rate of sales tax" shall be substituted;

 

(h)        i n section 7, i n sub-section (1) -

 

           for the word "section", occurring for the first time, the words and figure "sections 8 and" shall be substituted ; and

 

            after the words "ou tput tax'', the commas, words, brackets and figures ", excluding the amount of forther tax under sub­ section ( I A) of section 3," shall be i nserted;

 

(i)          in section 8, i n sub-section ( I ),-

 

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

 

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

 

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

 

           goods and services acqu ired for personal or non­ business consumption;

 

           goods used i n, or permanently attached to, immoveable prope1ty, such as building and construction materials, paints, electrical and sanitary fitti ngs, pipes, wires and cables, but excluding such goods acquired for sale or re­ sa le or for direct use in the production or manufacture of taxable goods;and

 

            vehicles falling in Chapter 87 of the First Schedule to the Customs Act, 1969 (IV of 1969), paits of such vehicles, electrical and gas appliances, furniture, furnishings, office equ ipment (excluding elc.crron ic cash registers), but exclud ing such goods acquired for sale or rc-sale.n;

(j)           in section 40B, after the proviso, the following explanation sha ll be  added, namely:-

 

"Explarwrion.- For the removal of doubt,  it  is  declared that the  powers  of  the  Board,  Chief  Commissioner  and Comm issioner under this section are independent of the provisions of section 40.";

 

(k)       after sect.ion 50A, the following new section shall be inserted, namely:-

 

"SOB. Rlectroi:tic scrutiny aod iotimation.-(1) The  Board may implement a computerized system for the purpose of automated scrntiny, analysis and cross-matching of returns and other   available  data   relating   to   registered   persons  and   to electronically send intimations to such registeJ'ed persons about any issue decectcd by the system.

 

(f)                 The i ntimation sent by the computerized system  u nder sub-section ( I ) shal l be in t he nature of an advice or advance notice, aimed at allowing the registered person to.clarify the issue, rectify any mistake or take other corrective aciioo beforn any legal or penal actioo is initiated.

 

(g)             The computerized system shall be so implemented so as to keep record of the issues detected, intimations sent, rnsponses received and actions taken, and to pre.sent such information to the officer of In land Revenue and to the Board in the prescribed 1nanner.

 

(h)               The Board may prescribe procedures and  speci fications for chc smooth and ctllcient operation of the  computerized systent.,,;

 

(l)           in the Fiflh Schedule, in column ( I ),after· Serial No. 8 and entries relating thereto in column (2), the following new seria l numbers and entries relating thereto shall be added, namely:-

 

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

 

10.    Pecroleum Crude Oil (PCT heading 2709 .0000).

 

I I . Raw materials, components, sub-components and parts, if imported or purchased locally for use i n the manufacn1ring of such plant and machinery as is chargeable to sales tax at the rate of zero percent, subject to t he condition tl1at the impo11er or purchaser of such goods holds a valid sales tax registration    showing    h is    registration     category    as

·'manu facturer"; and in case of im port, all the conditions, restrictions, limitations and procedures as are imposed by not ification under section 19 of the Customs Act, 1969

(JV of 1969), shall apply.

 

12. Tl,e following goods and the raw materials, packing material>, sub-components, components, sub-assembl ies and assemblies impo1ted or purchased locally for the manufacture of the said goods, subject to the conditions, limitations and restrictions as specified in Chapter X IV of the Sales Tax Special Procedure. Rules, 2007:-

(i)          Colors in seis (PCT heading 3213. lOOO)

(ii)        Wriiing, drawing and marking inks (PCT heading 3215.9010 and 32 15.9090)

(iii)     Erasers (PCT head ing 4016.92 10 and 4016.9290)

(iv)     Exercise books (PCT heading 4820.2000)

(v)        Pencil sharpeners (PCT heading 82 14.I000)

(vi)     Geometry boxes (PCT heading 9017.2000)

 

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

(vii i)  Pencils including color pencils (PCT heading 96.09) (ix)     Mi lk incl uding flavored milk (PCT heading 04.0 1

and 0402.9900)

(x)       Yogurt   (PCT heading 0403. 1000)

(i)           Cheese (PCT heading 0406.J 0l0)

(j)            Butter (PCT heading 0405.1000)

(k)         Cream (PCT heading 04 .01 and 04.02)

(l)            Desi ghee (PCT heading 0405.9000)

(m)       Whey (PCT head ing 04.04)

 

(n)         M.ilk and cream, concentrated  and  added  sugar or other sweetening matter (PCT head ing 0402·.I 000)

 

(o)             Preparations  for  infant  use put  up  for  retai l  sale (PCT heading 1901.1000)

(p)             Fat filled milk (PCT head ing I 901.9090) (xix)           Bicycles(PCT  heading  87.I2).";

(m)         in the Sixth Schedule,..:._

 

(l)         in Table- I , in column (I),-

 

           against Serial No. 24, in column (3), after the figure and comma,  "1 510.0000,"   the   figure   and   comma "I5 1 l.I000,"sha II be inserted;

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

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

 

"72

73

 

74

75

76

77

78

79

80

81

82

 

 

83

 

Uncooked poultry ntcat

Milk and crtam

 

Flavored n1ilk

Yogurt Whey Buner Ocsi ghc:c Cheese

Processed cheese not grated (Ir powdered Cotton seed

fro7,cn, prcpascd or pn:sc:r\'cd sausages and similar products of poultry 1nea1 or nlcat offal

Meat  and  similar  product$  of  prepared,

frozen Qr prescoicd n1eat or meat offal of all

lyp<s in!4iog P9!1!)' m••1!!14 lish

 

02-07

04.01 and

04.02

0.102.9900

0403.1000

04.04

0405. 1000

0405.9000

0406.1010 0406.3000 1207.2000

1601.0000

 

 

1602.3200,

1602.3900.

1•m.ooo,

1604.1100,

1604.1200.

1604.1300,

1604.1400.

160-•.I500,

1604.1600,

1604.1900.

1604.2010,

1604.2020,

1604.2090.

1604.3000

84   Prcpars1ions tbr infant use, pu( up for retail

sale

(h)           Fat filled milk

(i)             Colours in sets (Poster colours}

(j)              \Vriting. drawing and matking inks

 

88    Erasers

 

B.             Excccise books

C.            Pencil sharpeners

D.            Energy saver lamps

E.             Sewingntachincs <1f the household rype

 

F.             Bicycles

G.            \Vheelchairs

1901.1000

 

1901.9090

3213.1000

321S.90l0

and

3215.9090

4016.9210

snd

4016.9290

4820.2000

82 14.1000

8539.3910

8452.1010

and

8452.1090

87.12

87 13.1000

and

8713.9000

 

 

Vessels for breaking \JP

Other dmwing.. mark ng out <ir matflcnta1ical

 

&9.08

9017.2000

calculating instruntcnts (gt'.Qmctry box)

 

97

?c.n s and ball pens

96.0&

98

Pcnc-ils including colour pencils

96.09

99

Compost (non che1nical fcnitizcr) produ C(d

and supplied locally

Re.spcc i\'e

hea.dings

J OO

ConstroC:t on ma1cria s 10 Gaw-1. dar Export

f'rQc:cssing Zone's investors and tu Export

Processi1lg Zone Gawatlat for development

Rc.sive

he.adi11gs

 

of lonc·s infrastn1cturc,

 

IO I

Raw and pickled hides and skins, \\'CJ blue hides  :i.nd  skins. fi1lishcd  leather.      and

Respe<::tive

headings

 

accessories , components and trimmings, if

 

 

imported  by  a  rC"¥i$tered  Jcather  goods

ntanufacnircr. for !he manofaen1rc of goods

 

 

wh<>lly for export, provided lh:tt conditions,

 

 

procedures  and  restrictions  laid  down  in

 

 

rules 264 10 278 of the Custoins Rules. 2001

 

 

are duly fulfilled  nd <:()(H_plicd wilh.

 

102

!\1achincry,       equipment    and                                         materials impor1cd eitlte( for exclusive use withi11 the

Respecli\·e

headings

 

limiLS  of  Ex1>on  Processing  Zone  or  for

 

 

making   exports   then from,   and    goods

 

 

imported for warehousing purpose in Export

 

 

Processing  7,Qne, subject  to  lhe conditions

 

 

that such  1nachinery, equipment, n1ate-rials

and  goods  a..-e  imponed  by irwcstors of

 

 

Export  Processi ng  Zones,   nnd  all  the-­

 

 

procedures, lin1ita1ions and restrictions  as

 

 

arc  npplic-a.blc  on  su ch  goods  under  1h c

 

 

Cu.ston1s Act,  1969 (IV of 1969) and rules

 

 

made tJ1creunder  shall  muttUi$  mut<u1dis.

 

 

apply.

 

103

frnport and supply thereof,.  up to the year

Re<. Spectivc

 

2020. of ships of yoss tonnage of less than

headings

 

IS  LDT  and  all  Ooaling  crafts  inciuding

 

 

tugs. dredgers. survey  vessels  and  other

 

 

speciaJized   crafb  purchased  or  bare-boat

 

 

chartered by a Pakista11 emity aod flyit\g, the

 

 

f>akistan flag. cxccpl ships or c-rafts acqufred fo1 dent0lition purposes or are designed e>r

 

 

adapted for use for recreation or pleasure

 

 

purposes, subject t() the- condition  that such

 

 

ships or C(afts ate used only for the purpose

 

 

for which they "'ere procured. and in case

 

 

such ships or craft'.:> arc used for dcmoli1ion

 

 

purposes within a period  of five yi;ars of

 

 

thdr ncquisition.sales tax applicable to such

 

 

ships  pufchased  for  demolition  pu1p0se.s

 

 

:>hall be chargeable

 

10

Substa.ncts registered  as drugs undc-r the

Orugs  Act,  1976 (XXXl  of  1976)  and

CSf>l'C·li\'C:

headings

 

medicaments  a;;  ure   chtsi>ifiablc:-  under

 

 

Cti:ipte('   30  of  the  Fitst   Schedule  to  lhe CuSlC>tUS Ace, 1969 (IV of 1969) except the

 

 

fOllO\Vil)g. even if medicated or rnedicina.I in

 

 

nature:, namely·-

 

() m infus;on solunon b.ogs imported "1th or ·ithout infusion gi\'1ng scc.s:

(b)        scrub$,  detergents  and  washing

prcpara:ions:

(c)             soft .soap or no-soap soap:

(d)        :adhesive platei.

C.          surgicaltap('s:

D.          liquid pruaffin;

7.           dl>h>fe<:IMlS; and

8.           <:osmeties wid toilet preparations.

 

105 Ran m11cri1Js for the basic manufacturt of pharmaceuoeal acth't ingredients and fOJ IMllUflClutC of phmna=>tiaJ prodUCU. pro\'fckd lhat 1n case of import. on·such """ m,ntctis thall be entitled lO cxcmpnon

...,tiich  arc  liable  to  custi:.>ms  duty  noc

exceeding lcn  per  cent adw1forem, eilher

under 1hc Finil Schedule to tbe Custom s Ac<.

1969 (JV or 1969) or under a no1ificution

issued under sccti<)n 19 1hc.re1 f.

 

RCJpcctivc

headings

 

106        lmPoft

of  Halal  edible  offal   of  bovine                                  0206. 1000.

animals

.                                                         0206.2000,

 

0206 8000

 

and

0206.9000

107        lmpOft

and  supply  of  ioditcd  sail  bcanns                                2501.0010

brand names and trademarks whdher 6t noc

sold i·n rct.11.il packing.

l08        Conlponcnl:I or sub-components of energy

1'-aYCr lnmps.namcly:-

(a)      Elccironie Circuit

(b)       Plaslii; Caps (Upper and Lower)

(c)      Oasc CpS 622 and EZ7

(d)      ·ru ngs1cn filtunents

(e) Lead·in,vin:

(0 Fluorc:sccnl Po\\'dcr (Tri Band Phosphcr)

(g) Adhc:sh"t Additive

c..,.,••

 
(h) Al-Oxide Su.pension

ti>      8eem.n1

(J)Scrunp Plld Ink

(k) Outtcr (or Suspension

 

109   Good:i impurlcJ tempOtarily wi1h a \'iew to subsequent exportation. as concurred by the l:Jcltitd, including passenger ser\'ict item, fHi)Y Sion and stores of Pakistani Airlines.

 

 

8S39.9040

8S39.9040

8S39.9040

8S39.9040

SS39.9040 3206.SOIO

382• 9099

3824.9099

3214.IOSO J21S.9010

28.s0.0000

 

R   pcieti\'C

heading.-;

 

110              The following items with dcdica1ed useof rene\vablc source of energ)'like solar and

\; ind,  subjecl  to  oertification  by  the

Aherna1ive. Energy Dc1t·ctopment Board

(AEDB), slamabad:-

 

(o)

Solar PV panels;

8541.5000

(b)

LVD induction lan1pS:

8539.3990

{c)

S10. LEDs 'vith  or   \Vithout

9405.1090

 

(d)

ballast, wilh fittings and lix1ures:

\Vind turb.ines including alternators

 

85(12.3100

 

(c)

and mast

Solar torches

 

8513.10.10

(f)

(g)

Lun1en1s and rdated instr'uinen1s: PY  module.s along  with  related components. inc.luding  invtrtOl'i.

85)3.1090

8S4J.4000,

8504.4090,

 

charge controllers and banecies.

9032.8990

and

 

 

8507.0000

111               White crystallinesugar

 

 

112               Following cardiology/cardil\'C surgery. ncurovascutar,  elcclrophysiology, endosurger), endosoopy, onoology, urology, gynaecology. disposables and O(her equipmen t:-

 

A.      ANGIOPLASTY PRODUCTS

I.       Coronary ARcry Stc.nts

2.  Drugs Eluting Coronary Artel)'

.Sti:nts

3.   Coronal)' Ancry Dilatation Cathetets (Balloons)

4.    PTCA Guide Wire

5.   PTCA Guiding Cathcttrs

6. lnOation Oe\'ic.cs/Pciorit}' Packs

 

B.    ANGIOGRAPH\'PRODUCTS

l. Angiography Cathelcrs

M.   Sheaths

N.    Guide- "''ires

4.  Contrast l..ines

5.   Pressure Lines

6. Mannifolds

 

C.     CONTRAST MEDIA FOR ANGIOGRAPHY/   ANGIOPl.ASTY l. Angiography Aeoe.ssories

2.    1\$0 Closure Devices

3. J\SD Deli\ltl')' S"tems

4.     VSO CIO$ure Devices

.S.   VSD'Oc1ivery System

(a) Guide Wirts

(b) -Si.zi ng Ba.ttOons

3.    Sizing Plates

(iv) PDA Closure Devices

(v)  PDA.Dt.livery system

 

D.      TEMPORARY PACEMAKf:RS

(wi1h leads. oonnec101s and accessories)

 

L       Pf,RMA!'iF,NT PACl:MAK£R

(wi1h leads. connectors- and · accessories)

1701.9910

and 1701.9920

Respccti\· heading.s

F.          HE.ART  f'All,,llRE  0£VIC£S (with leads. <:Orlt'lec:tO:-S and accessories)

 

C.     1"1Pl.Al\IA.BL£

CAROIOV£RTI:S

(wi h     lads.       conncctoN            and

accessories)

 

4.       CARDIAC

ELECTROPHYSIOLOGY PROOUCTS

A.   F.lcclzOphysiology carhcicrs

2.     Electrophysiology cables

J.  Elcruophysiology co11nec1ors

5.      LEAR  CARDIOLOGY PRODUCTS

I . Rtilioaah:e i.sotopes

2.   Cold kilS (Cardiole>itc MAA, l)TPA <tc)

 

7)       CARDIAC SURGERY PRODCCTS

       O<ygtnaoo

3)    Cannulas

3     Prosthetic HC'<Ut Vah·es

4,  Luzninal Shunts for hcan surgery

S . Artificiat limbs and appliances

 

K.     EQUIPMENT

I . Cardiac A.ngiography Machine

2,  Echocrud ogzaphy fachiJ1es

4)    EIT Machines

4,  Oamn1il Camera for Nuclear cardiology studies

 

L.      P&IUPHERAL INTERVENTION S EQUIPMENT

OispQSablc:s and other cquipmcnl for peripheral interventions including  stcnts (including carotid and wall stc::nts). baUoons, sheaths. ca&heten. guide wires. fiJter wires eotls. nttdlcs, vac.s (including rotating homeoslalic valves). conneetin.g cables, i:nnarion device$ adaptors.

 

(iv)          Ul&b Efficiency lrrigarion Equipment

(I(used ror agricuhurc sector)

(iii)  SubmeDible pumps (up to 7llbs and

head I SO Jnetcrs)

(2) Sprinkle-rs includ ing high and low prwure (center  ph·otal)  sys.tern, conventional sprinkler cquip1ncnt.water reel

INlvcling  sprinkle.r.      drip  m trick!

irn&ation   equipment.   mint   irrigation

sprinkler syStem.

 

 

8413.7010

8424.8100

8424.2010

 

(3)  Air rclcaK val\•cs. pressure g:t\1gcs,

8481. 1000.

water   meters,  back   flow  preventtrS. and

8481.3000,

automatic controllers.

9026.2000.

 

9032.1990

114       Gr= House Fanning and Olhn Green

House Equ1pmen1.

(I(used ror agriculture sector)

(J )   TunncJ farming equipment.

 

(2)     (Ileen houses(prt.fabricatcd).

 

 

 

 

8430.3100,

M30.3900

9406 0010

Plnn. t, machinery and cquipnu:nl imported for scuin& up fruit processing and prt:K:nution units iJ1 Gilgit·Baltistn. n, Bakxht-Stan Pro\incc and Malakand Dl\olSIOn upto the 30th June. 2019 subject to the same condtUOC\S and prure as II'( appl1C>bk ror 1mpon of such planL machu.cry and cquiprMent Wlda" ahc Cumoms Act, 1969 (IVof 1969).

Rcspccti e

hcftdings

 

116.                    Plane. rna.;hincry and equipment impoucd for scuin& \IP industries in FATA uptO the 30th June, 2019 subject to the smno condi1ions und procedure as arc applicable for lmpon of such plant, machinery 1md et1uipmcn1 under the Cust0tns Act, 1969 (JV of 1969)

 

(m)      in Table-2,in column (!),-

 

Ri:sptive headings.";

 

              against Serial No. 3, for the entry in column (2), the

following shall be substituted,namely:- "Supplies made by cottage industry.";

              after the already om itted Serial No. 12, the following new Serial Nos. and entries relating thereto in columns

(2) and (3) shall be added, namely:-

 

"13 Reclaimed lead. if supplied to recognized manufacturers of lead batteries

14           Waste p•pcr

15                       ()                Sprinkler Equipmen t

(b)          Drip Equipmei\t

(c)           Spray  Pumps   and

no1..lles

16       Ra'' cotton and ginned cotton

Rc:specti\'C

headings

 

Respective headings Respective hcdings

 

 

Rr.speelive

headin":and

 

(n)          after Table-2,amended as aforesaid,the following new Table shall  beadded, namely:-

 

"Table-3

 

The plan t, machinery, equipment and apparatus, including capital goods, specified in column (2) of the Annexure below, falling under lhe HS Codes specified i n column (3) of that Annexure, shall be exempt from the whole of sales .tax, subject to the following cond itions, besides the cond itions specified  in column (4) of the Annexure, namely:-

 

(d)      the imported goods as are not listed i n the locally mauufactured items,  notified  through  a  Customs Genera l Order issued by the Board from time to time or, as t he case may be, certified as such by the Engineer ing Development Board;

 

(e)        except for S. No. 9 and 14 of the Annexure, the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and fo11nat as per Ann• X-A that the imported items arc the company's bonatide requirement. He shall furnish a ll relevant information online to Pakistau Customs Computerized System against a specific user ID and password obtained under section 1550 of the Customs Act, 1969. In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Project Director or any other person authorized by the Collector   in   this  behalf  shal.I  enter   the  requisite i n formation in the Pakistan Customs Computerized System on da ily basis, whereas entry of the data obtained from the customs stations which have nol yet been computerized shall be made' on weekly basis; and

 

(f)             i n case of par1ial shipments of machine1y and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and  components required for the complete plant, duly supported by the contract, layout plan and drawi ngs:

 

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

           the manufacture or production of any  goods and includes refractory bricks  and  materials  required for setting up a furnace, catalysts, machine tools, packaging mach inery and equ ipment, refrigeration equipment, power genera.ting sets and equipment, instruments for testing, research  and development, quality control, pollution control and  the like;or

 

           use in m111111g, agriculture, fisheries, animal husbandry, floriculture, ho1ticu lture,  livestock, dairy and poultry industry.

 

A1. ''NEXURE

S.

No               Description                     PCT heading                         Conditions

(I)                                                (2)                                                          (3)                                                              (4)

I. Machinery and  equipment  for initlaJ installation, baJancing. modcmi1;3tion, replacement or expansion of desalination plants, coal firing syste1n, gas processing plants and oil and gas field prospcc1ing.

 

3.        Following  mat.hintry,  e.quipment, apparatus, and  medical.  surgical, dental   and    vc.1c.rina1y    fui:ni1urc, n\aterials,   fixtures   and    fittings imported by hospitals and mcdicaJ or diagnostic institutes:-

 

 

    !\tedic.al Equipn1ent.

12. Dentist cl1airs

(a)  t\1c. dical  surgical  dctltal  or

\'Cterinary furn iture

 

4.     Operating Table,

5.    

($)

Hospital        Beds                     with mechanical fillings

9402.9020

(6)

Gymnasium  cquipntent.

9506.9100

(7)

Cooling Cabinet.

84185000

(8)

Refrigerated Liquid Bath.

3824.9099

(9)

Contrast t\1cdia Injections (for use in  1\ngiography  &   1RI

3822.0000

 

etc).

 

 

 
Emergency Operating Lights.

Respective headings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9402. 1010

9402.9090

 

9402.9010

94-05.4090

Nil

 

 

 

 

 

 

 

23)   The  project  rcqulrcmc-nt  shall  be appro.,·ed the Board of Investment (BO]). The  aulhoriicd  offiocr  of  801 shaJI certif)' the item-v.ise rtquiren1ent of the­ project  in the  prescribed  fo(lnat  and manner as pcr Anncx-9 and shall furnish all  relevant   information  onlinc:  to Pakistan CUstoms Computerized Systen1 against a specific user-JO and password obtained  under  section  I SSD  of  the Customs Act, 1969 (IV ofl969);

 

24)   the goods shall not be sold or othcn.\•isc disposed of without prior approval of the Board and payment of custonts duties and ta. es at s1.atutory rates leviablc at the time of import, Breach of this condition shall be oonstrued as a ctiminal offence under the Customs Act, 1969 (IV of 1969).;

R. ( ardiology/Cardi.ar  Surgtr)'

Equipmtot

(I) Cannulas.

 

 

 

9018.3940

 

3.   ·1anifolds.

4.        lnlravenous   canoula    i.v.

catheter.

C.  Dispos.able lcdical_Uc,·icr.s

O       )    Sdf-disablin    safely   sterile syringes.

(l) lnsulin syringes.

0. 01hc:r Related Equipmcnrs

(I) Fire ext ngu sher.

P     Fixtures & fiuing.s for hospitnls

 

3.  I .  Machinery.  equipment. matedals,         capital      goods., sptciali?..ed \'ehiclcs (4x4 110-luxury) i.e.. single ot double cab n

1>ickups.    ticccssories,    sparc.s,

chcnticals end consumables meant for 1ninc cons.uuction phase or extraction ph:L. e.

2.     Co1is1n1c1io1l       1nachinery,

equip1nen1     and     spcc inlizcd

\'Chicks, excluding pa.sscn gcr vehicles, imported on temporary basis as required for n1inc ctlnStru<:tion or extr.:ic. t.ion phase.

 

 

 

 

 

 

 

 

 

 

 

Coal         min ng             machinery, i:quipment,                             sparc.s_,   including vehicles fot site us.e i.e. single or doubie ca.bin pick-up:S,impOrled for TI1ar Coo.I Field.

 

 

 

 

 

 

 

 

 

 

 

 

>.  1.  tachin ry,  equipment  and spares 1ncain for initial i11stallation.

balancitut             modernization, replacem-cnt or expansion of prt)jccts     f()r    power     generat ion

 

8481.8090

9018.3940

 

 

9018.3110

 

9018.31 10

 

 

$424.1000

Rc:s(lcctive

headin s

Rospcctjvc

headings

 

 

 

 

 

 

Respective

h cidings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Respc:;ctivc heading.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Respective

headings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I . This conce.ssion s11all be available to those iniocral exploration and extraction companies or their au1hori1..cd openuoJ's or contrn.t'..fors who hold permits, licences, lease a11d who enter into agreements with the Governntent 6f Pakisrnn nr a Provincial Goverrunen1;

 

2. TcmpcrariJy imported gQods shall b<! clcrucd against a security in the fonn of a post-d<lteJ cheque for the amount of sales rnx.along v.'ith an undertaking to pay the sales tax at the statutory rate In case such goods are not re-exported o•:i. oonclosion of the project;and

 

3.   TI1t goods shall  1101 b< sold or

od1c1v,risc  disposed  of   without   prior

:!ppro\•a1 of the Board and Lhe paymern of sales 1ax leviableat the time of i1nport.

·n1csc shall, however, be allow1'.1t to be 1ranst'Crrl.'d t<> olhe-r entitled mining compMics  witll p1ior approval of 1J1e

a.o:?rd,

 

(a) This. -oonccssion shall be a\'ailabk to thuse ntining companies or their authorized operalol"S or conuaclOrs who hold pcrmi1s, licenses, kases t1nd who en1cr into agreements. with lhc Government of Paki.SU\1\ or a r'()vincial Government.

 

(iii)    Tt.e  goods  shall  not  be  sold  or

<.>thcrwisl.' disposed of wilhOul p;i01 approval or the noard aild the pa)rritcnt

of c-ustorns duties and taxes lcviablc m the 1ime of import. 111ese shall,hO\\\·er. be allowed to be uansfcrred to other entitled mining companies with prior app:lwd of the Board.

 

(I} Th1s concession shall also be available 10 pri1na11· OO!ltraclors of the prOJCCl upon rulflJlment of' thl: foH<>win£, conditions. namely:-

through oil, at CQa:i wmd and Wl!\'C encrg) induding under construcbOn projetl$.  '-'h1ch entered into an imp?cmcnlat1on agrcc:m.cni: with the Govcmrncnl of Pakisun.


       the contraclor $hall $ubm1t copy or the ;ontraa. or agrccmc:nt under \\'hKh he illlcnds io import d)( goods for lh< pro(:

 

(b) the Oltcf Exccuth c «head or

the  oon1racdng  ccxnp&n)'  shall

2.      CQC'l.Struc:tion

equipment            and vehicles,     cxcJuJing vchiclc-s.  irnponed   on basis       as             required constniction of projcc-L

1nac:hin(t)',

spcc1alfzcd passenger lcmp(lrar')' for   the

certify in the prc:scnbcd manner and j(lmlat as per ArlllcX•A th 1 the im_portcd goods a.re lhC 1>nic:c:is bonu lidc: reqmrcmcnt nnd

 

{c) the goods shall not be sold or otl'leru·ise disposed uf wi1hou1 1>nor npproval of the FDR or1 1>aynu:m of sales tax lc:\'iablc at the time of i1upor1;

 

 

6.            1.  Machi1lery.    cqtupmc:nl    and spares meant for initia1 inst.;illn1ion.  balaucin.                            modcrniu1tion.  rcpllltcment Or    expansion   Of projects  for    pow·cr  generation through gas. c<>al, hydcl, and oil including            under                      cons1n1c1ion projects.

 

 

 

 

 

 

 

 

 

Rcsp·l c1ivc

headin

(c)     ttmp0rarily imported goods shall be dc:arcd igainst a S«Ul'it)' in lhe (urm or a pOSt-dated  chcqvc-  tOr the ddTtttntilll

amount   bc1·wttn   the:  stat\llOt)   rllt   ot

saics- w:: and the amOWll pa)'1blc under this   no1ific:aiion ,   atoog   \\-ilh    an

undc-naking. 10  pay the: Wes  tax  at 1hc

statutol)' rates in case such goods Dre: noi

fC-tXpOlttd on ronclus.ion ofthe pro)CCI.

-do-

2.      Construction tqu1pmcm              and

\'ehieles.   c'\'.cludmg

\ chicks. impOrtcd on b0Sis as            required construction Of proj«I

ni.ich1ncry. ipccualizcd passc.nacr

l<:rnpOrll)'

ror        1he

1   I.    iachmcry.  cqu1pmm  and spares meant for inrt1al 1ns1aJladon. balancing,       1nodc:mi1.a1}()n, rcplacetnent or expansion (If projects for power gcncru111'm through nuclear and renew-able energy sources like solar. wind, niicro-hydel bio·encrg)'. ocvan, w:istc·to-e1tergy and hydrogen cell etc.

Rcspcarvt

headings

 

-do·

2.       Constn1aio11 equipme;u                            and "thictes.           excluding vducles. imp0rtt: d on basis               as                      required COOIDOCtion o( Pro.tf'Ct

nm<:hincry,

.sciaJizcd pids.enger ccrupora.t) f<><  lh<

Expfanahon.·      The     cxprC$$1on

..projCClS ror power generation.,. meant any project for gent.ration of elcctr1city whether s1naJJ. medium

or lnrgc: and whether for supply to the ru1.1io110.I grid or to ;my other ustr or for in house consu1nptlon.

 

8. I , 4ac:hinery  and  equipment meant for J)O"cr trmsm1ssion and grid s1auons including under consuuction projt(tS.

 

 

 

 

Respective

h<ad1ngs

 

 

 

·do-

 

rrxplMllt(ln. for the purp()SC Of this :sen:il nun1btr.'"machinery n:nd cquiprnc-n1"' shall mean -

 

{a)   machinery   and   equipment

«)permed b)' power of any description. such as is used in the scncmtion ofpower:

(b) apparatus. appliances.me.tering ruid testing app.aralus. medianicaJ and electrical control. transm1Ssion gear and transmisslOO tower,pow'tf UMJmlS.$100 and dtSlribution cabks and eonducu:ws.. insularocs, da.1. llpcr spacer and hardware and paru therrof   1da.ptc   to   be  used   in

eanjune1ion wnh the machintry and C"qui1>mcnt a. specified in clause(4'1) above:and

(c) components 11ar1s of machinety rind equipmc:nl. as specified in clause (a) and (b) above, 1dtn110ablc for use in Of wilh madune-ry i1nponed foe the projcc.1 and U-lpmcn1 mcluding span::s for put'pe)k< ofd1e prOjta.

2.       Constroc1100       m:rcb1ncry,

equipment      and       specialized ''thiclt$.    c'tcludins                  pa.s.<>enger vetuclcs,  lmpurtcd  on  tempOr<\t)'

basis     tis      required      tQr     the

co1\s1n1ction of project.

 

3.        Follo,.,..ing machinery, equipmen1 and other cducatiOI\ Md research 1ela1ed items ilnportcd by technic:?I uaining institutes, research 1ns1i1u1es. schools. concges itnd uni,·m11ic$·

 

         Quam m>«or rubes ""d holders dei1gncd for  instrtion into diffusion  and  oxu;l:ation  fumaccs

fot produc11on of semiconductor

wafer$,

 

P.I  Otht1 d1ytos

 

P.II         Fil1cring      or      punfying

1nach1nc:ry and apparatus for water

 

 

7017 1010

 

8419 )900

 

8421,2100

 

 

 

 

 

(4)  Other   fihering  <)r   puiif)1ing,

mad1U e()'   aJld    appJU(llUS    for

 

 

8421.2900

liquid'.>

 

(S} PCrson31 we ghing mach nes,

8423.J OOO

including.  baby  scales, household

 

scales

 

(6) ScJcs for continuous weighing

ufgoods onconveyors.

8423.2000

(7)  Cori:stant  weight  scales  and

8423.3000

scales for dischacging a prcdc1ermined v.t:igh t (if maierial into a bag or container. including hopper scales

 

(8) Other 'veighing 1nachinCI)' having s maximum weighing capacity not exceeding JO kg

 

(9) Omer weighing machinery having a maxinnun \\\':igh ng capacity exceeding 30 kg bu! not exceeding S,OOOkg

 

(I()) Other weighing machinery

 

(I I }\.Veighing nJachinc weights of all kinds; parts of 'vcighing machinery of machin of heading 8423.2000 & 8423.3000

( I  )   Other    wdz.hin,g    machine

\\'CtghlS of all kinds; parl$ Qf weighing. muchincr)' of machines CJf heading 8423.2000 & 8423.3000

(13} };°CLworking equip1nt-nl$ like roulers, LAN bridges. hubs excluding switches and repe.ate.rs.

3.    ) Olher fumacec.: and ovens

4.        Electronic balances of a sensitivily of S cg or better, with or with<mt weights.

{I 6) Othe' balances <if a sensitivity of :5 cg or better. with or \Vi thQUt weights.

{17) Thermostats of a kind used in

1cfrigcNttors a.nd air·oonditioners

(18) Other thcnnostats

(19) Manosiats

(20) Other ins.tn1mcnts and apparatus Hydr:.i:ulie or. pncumat1c

 

(21) OtJtcr instruments aod apparatus

O          Part$ and accC$sories of automatic regulating or c<lntrolling inslrun1ents and apparatus

 

8423.8t00

 

 

 

8•23.8200

 

 

 

 

8423.8900

8423.9000

 

 

8423.9000

 

 

8517.6970

 

8514.3000

9016.0010

 

 

9016.0090

 

 

9032.10 10

 

9032.1090

9032.20(>0

9032.8100

 

9032.8990

 

9032.9000

P           

 

 
Spares.   ac«$sonCS.    and rca.,o..tnts f«setcniific rqu1prr.tntS

 

 

 
10.            Machinc:n ,     equ1pmmt.   ra"

materials.:to1npoocncs and oc.hrt

capital goods for use in buJfdlngs. fittings.   repairing,  or   refin ng  of ships. boa s  or  flo:uing  suuctur<S impor1cd b)' Karachi Shipyard nnd Engineering \Vori.:s Limiled

II.

 

Following machinery and cquipt!le1\l for nu1rhlc ranite nnd Senl Stone c;drll.Cl10n and processinginduslries:

 

 

(I) Polishing cream or ma1cnal (2) Fib« &Iass mtth

Q      Cham sa"fdiamond \\1rc saw tn all sizes and dimensions and sprues thereof, diamond wirt jo1ncs alJ types and dimensions, ct11un for

hain sa ' and diamond wire$ for wire saw 2nd Spart widia..

 

 

(1) Gin saw blades.

B.  Gangsaw bladc:'.i/ditu nond s:h.,. blades/multiple blades or all lYJ>CS and d mensions.

C.    Air co1npressor (27 cf\ and abo,c).

D.     f\.iachinc and tool for stone

"'Of""' sand blasting machines. iungstcn easbidc iools: d11mOnd 1ools & sqrncms (all l)i>C & dimensions). hydraulic JacL.1na machints. h)1lrauhc man\QI prtss mxhincs.      airJbydro       pillo" ·

coinprcssod   air   rubber   pipes.

h)draulic drilling m:ichincs, manual and pO\\cr drillln.: machi!'!es, steel drill rods nnd spring (all  sizes  and  dimensions),

\vholc finding system with accessories. n1a.nual ponabk roc:k dri11$. <:.ross cutter and bridge cutters.

E.        Integral  drillii1g  steel   for

horizontal end \'ertica\ dolhng. estension      lhread      rods      ror

pncumtk super long drills. tools and accessories for roek dnlts.

 

3405.4000.

3405 9000

 

7019.5190

 

3202 4000,

8202 9100

 

 

 

 

 

 

8202.9910

8202.9990

 

 

3414.8010

 

1464 9000 &

Rcspccttvc

headings

 

 

 

 

 

 

 

 

 

 

 

 

 

846Q.9 100

 

L For the proj ects of Gem S1011c & JewclCI)' Industry, CEO/COO. Pnkislan Gem and Jewclcl)' Com1)nt1)'$hall cc:t1ir)' in the pr4:Scribcd fornuu nnd mnnncr AS

per A.nncx B 1ha1the 1m por1cd r:oods nc

or

 
bona.fide project requirement. 1'hc aothorizcd person of tJ1c Co111pany shall furnish all relevant infonnauon onhnc 10 Pakistzn Customs Computcriitd  S)'ttcm ag.ainst a specific user ID and password obtained   under   secoon   I SSO         the

Custcxm Aa. 1969

 

C.         For 1hc projects of asblc & Gtan1te lndtW.T\ . CEO/COO. Pllkbtan Soonc OeveloPmcnt Compan)' shall ccn1fy in the pre$cribed fonna1 and manner as per Anncx-B that 1hc imported &QOds arc bonafidc projccl tequirctn(nl TilC authorir<d per:l<lns of 1he Company shall rumish ..n relevant infonnation onhnc to Pa.k is.tan Customs Com pu1cri1..cd System against a specific user Jf) und password

obtained  under  srction   ISSO  or the

Q.Js<om:sAct, l969.

 

D.   The goods shall not be sold oi othcn,·1se disposed of wnhm a period of fi"c: years of their Import ex. cep1 ni1.h the prior approval of the FBR and pa)mcnl of customs d:u1ics and tncs lc\'1abk: tat

the timtof impOrt.

i.            iv1achincJ)'. equipment and othet project rdated iten1::; including c?1)ital goods, tOr setting up of hotels. power generation plants, water tr1men1 plants and other infrastn1cwre related projects loca1cd in an area of 30 km around the zc.oo point in G\\'adir.

 

 

 

 

 

 

 

 

 

ii.          Efl1uenl trcatn1ent plants.

 

iii.        Following itents with dedicated use of renewable source of energy like solar, wird,geo1hc:.r111id etc:-

  Solar Home Systems.

(a) ln\'eners.

iv.      Charge   controllets/cul'retn

contr()llers.

v.  Energy saver lrunps of va.rying

\'Qltagcs (operaiingon DC).

(d) Energy saver lrunpS of varying

\(>ltages (operating on AC).

(c)    Light emitting diode.s (light e.mitting in difti.!(cnt colors).

<O \Vatcr pumJ)s operatiog on solar

energy.

 

(g)    \Vatcr  purificmion  planlS

operating on solar energy.

(h) Bancrics KiCd. Liiol\ & Lead Acid specific utili.-.ation and integnited \Vi th solar elcc.trilication system.

(i) Energy Saving Tube Li{!hL;,;

    Solar Parabolic Trough Powtr

f'lants.

D.      Paiabof ic Trough <:ollcctors tnodules.

E. Absorbers!Rt.ceivers  tubes.

F.     Sic.am turi)me of an output exceeding 40t<.1\V.

G.   Steam uirbine of ail output not

exce-tding40l>,. \V.

Respec.the

Hcading.s

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Respective

headings

 

 

 

 

 

 

8504.4090

9032.8990

 

8539.39 10

 

8539.3910

 

854 1.5000

 

8413.7090.

8413.7010

 

8421,2100

 

8507.3000.

8507.8000

 

 

539.3920

8502.3900

 

8503.0010

 

8503.0090

84()(>.8 I00

 

8406.8200

I .The Di"i:sion dealing with the: subject matter of induslfies.. Wall certify in the pre..::ribl!d manner and fo!mllt as per AnnexB tl\at the in\porttd goods are bonaf1dc project rcquirernent The authori1.ed officer of the \\1inistry shall fwnish all rdC\'illlt infOmuuion Online t<) Pakistan Customs Compure!'ized S)'Stt1n ng?.inst a specific user 10 and password obtained under sc:clion 155D of the ClS101l'lS Act,  1969.

 

ix.    The goods shall not be sold or uthenviSc:- dispQSed of wilhout prior approvaJ of the FDR and payment of customs dUiics.and taxes le-viable at 1he time- of import

Nil

xii

 

(c)  Sun tracking control system.

 

8543.7090

(I) Conuol  p11.ncl   with   other

accessories

8537.1090

J. Sohtr Oisb Sr trting Engin .

8412.8000

(a} Solar conccntn'lting di.sh.

8543.7000

(b)  Stetling engine.

8543.7000

(c) Sun uacking controJ system

8543.7090

(cl)  Control p.111el "*th :?CCCSSOnt;S..

84068200

(c) Gc-nerator

8501.6100

4.       Solar  ,\ir  Condilionint;

84 15.1090

S)'srtm

 

(a) Absorpcion chilltrS.

8418.6990

(b) Cooling towers.

8419 8910

(c)  Puntps.

84\ 3.3090

(d) Air handling unil$.

8415.8200

(c)  Fan coils U111ts.

8415.9099

(t) Charging & Testing; cquipntent

9031.8000

5. Sola1· Otsitlinatiou Sys1em

8421.2100

(a)  Solar phoco \'Oltaicpands

8541.4000

(b) Solar w1;<1pump$

8413.3000

(c) Storage batteries.

ssin 2090

(d) Charge eon1rollcrs.

9032.8990

Ce) ln"cncrs

8504.4090

6. Sohtr 'fhermal Po"·u Planb

8502.3900

with ac::c::tS50riN.

 

7.    Solar  \Vater  Hca l"n>  \\ llh

acttssorits.

8419.1900

(a)  Vacuum tubes (Glass)

7020 ()()Q()

(b)  Sdcclt\c Cualing for absorber

RtspCCtive

plate::>.

hezdin;

(c)         Cop1,r.  aluminum  and

Respective

stainlc-ss steel sheets.

heading

(d) O:>ppC"t and ah.11n num tu.

Rcspcct1ve

heading

8. P\'  JodultJ

8541.4000

(0) Solar cells

8541.4000

(b) Tempered Glass.

7007.2900

(c) Aluminum frames

7610.9000

(d) 0-Ring

40169990

(e)   flux

3810.1000

(I) Adht.StVt IObcl .

3919.9090

{g) Juna.klnbox -co-.·cr

i.      Shm mixture or Paper and pla:ilie

ii.   Ribbon for PV Modules (n1adc

of'""'& uad)

til Bypassdiodes.

(k)   EVA (Ethyl Vinyl  Accu11c)

Sheet (C1lcmic;;il).

9.     Solar Cell i\la11ufac1urinj! f  quipmcnt.

(a)  Crystal   (Grower)  Puller  (if

machine).

(b) Diffusion furnace.

(c)  Oven.

(d) \Vaferin; n1achint

(e)  CUtting and shaplllf machines for silicoo ingot-

(!)        Solu   g,ade  pol)"hcor1 material.

(g) Phosphene G .

(h) Aluminum and sil\'CC paste.

 

HI. f•yrltnOmtttrs Jllld acccss.orici> for !)Olar dHta cnllcction

l·l.  S()INr chargtts for chsirging

eltcrronic dcvicc!I

12. Rt1no1e control  for .solar

charge controller.

(43)          \Vind Turbints.

(•) Rotor

(b) HIE

(C) Gcn<t>!OC

(d) Doep cycle battery

8l389090

39209900

 

RC'Spectl\-"l:

headirigs,

8541.1000

3920 <)<)(}()

 

 

 

 

8479.8990

 

8514.3000

8$14.3000

8479 8990

84619000

 

382A 9099

 

2848.0000

Rcspcc1h·c

headin

9030.8900

 

 

8S04.1020

 

354).7010

 

8412.8090

S.Sl29090

14129090

8501.90

&S07 8000

(44)                                                                          \Vind wattr pump      8413.8190

(45)      Georhcrmal        c:11c:·

equipmc-nts.

(J) Geo1hermaJ I!eat Pumps

 

(2) Geotht.o'nal Reversible Chillers

(iii)              Air h:!ndkrs for ind1J\n quality control cquipcnents

(iv)Hydronic heat pump

(c)  Slim Jim he excha.ntcrs

(6) HOP€ fusion ?oOls

8418.6100.

84 18.6990

8418.6' )0

84 1S.8300

 

8418.6100

8419 j000

SSIS.8000

 

invcnors,   charge   controllers   and batteries

 

 

16 Plant, 1na.::hinel')', equipment a,nd specific items used in production of biodics  l.

 

9032.8990.

8507.0000

 

Rc:;pc:ctive

headings

 

being i1r1por1ed are i1l quantities which oom1ncnsuratc wilh the PV modules being im;ported.

 

TI1e ,'\hetnat ivc Energy Dcvclopmenl Board (l\COB Islamabad shall mtify in ihc pn:sc.ribod manner and format as per Ann::<8D that the imported goods are bonafidc pcojcct requirement. ih c:. goods shall not be sold or otherwise disposed of

,\ithin a period of (ivc. ye.ars of their im1)on c:: ce.pt with Lhe prior apptoval of the FBR and payrnent of customs duties and ta:<c; lcviablc at the time- of import .

 

 

 

A.nne.i:-A

f-le:dcr l  for:i:a1io11

l\IN!fTN of ltn'  porte:                        IR.<1:g.c!11u.1ry A :r.arity r.o.

Name urRet;.ul31ory11tl1o:ity

(!)                                                   (2)

(l)

Dei\'lils of br.u1  £1)Qwt'$  ( a bt-  fl!!«! b)' the .;f- t:f CXC'.O:UI: \' Of  lf-.C  ill'l(l0!1)!l.j;

"<>mplmy)

Goo& irnPQe"teC (Cfll!cctar.it.e @f import}

 

 

 

-:<

c3

Oe   dp1i¢

11        *''

C\:$t(l :'n

Duty

tlltC

( !>lie·

:ible)

$ k     Tu

r.ite

C pplitlll:i c>

 

 

"

 

 

.·

l

COM

Q..a'.ld ty

inrp<Jr!cd

Col!cc<oC'ne

CRNI

 

 

MS<-11

No.

C)::.e

of

C'JI

 

i\.1w.:h.

No.

 

{1-)

fl/

(6)

(7)

<SJ

t9)

(JO)

(Ii)

02)

(13')

(14)

(iS)

 

CERTIFICATE.   It is cert i fied chat the description  and  quantity mentioned above are commensurate with the project requirement and that the same are not

manufactured  locally.   It is  further cercified  that the above  items shall not  be used  for any other purpose.

----------

 
Signature of Chief Executiye, or the person next in hierarchy duly authorized by the Chief Executive Name

N.l.C. No.--------------

NOTE:- In case of clearance through Pakistan Customs Computerized System,

the above information shall befam ished Online against a specific user l.D. and password obtained under section / 55D Qf the CZLftoms Act, 1969.

 

Explanation.-

Chief Executive means.-

 

I.    owner of the firm, in case of sole proprietorshi p; or

 

(a)     partner of firm having major share, in case of partnership finn; or

 

(b)    Chief  Executive  Officer  or  the  Managing  Director   in  case  of limited company or multinational organization; or

 

4.    Principal Officer in case of a foreign company.

 

H(':l(l;;r l :ifu:m;ititon

NTX/fDiori1';'9(1r!(I                                                                                                              I Appnn'<ll Ne..

 

(. }                                                                 "'

1>1;u1i s uf Input gwdli ({O 0.: ftlkd by I  .JU.(horixtd  offic.". ! of the Ro:vi1''Y

Authorit)')

G«1diimpon;;d (Coll0i:11)r1t. <1fimw.t)

HS

tM<

[)(s..; ip:ior.

 

 

[

OW.Ml

Dut>·  rli;

(pp!k.aOlc)

Sokt    T0<

rJt

(2pp!ica.,lc}

 

 

 

 

 

I::

ii

 

I"

0

Ql.=lot;ity

impo". \td

Colke111nr.e

CRN/M;idt.

No.

D.Jt,;- Qf

CR:S:

 

.·\W.:h

(>)

 

 

(6)

 

/8)

(9)

{tO)

(li)

(12)

(J))

(14)

 

 
Aoncx-B

 

 

 

 

 

 

 

CERTIFICATE.  Before   certifying   the   above-authorized   officer   of   the Regu latory Authority shall ensure that the  goods  are  genuine  and  bonafide requ irement of the project and that the sam'e are not manufactured  locally.

Signature                                               Designation         

NOTE:-Jn case of clearance through Pakislan Customs Compulerized System, the above information shall bejum ished on line against a specific user 1D. and password obtained under sec1ion 155D of the Customs Act, 1969. ";

 

(II) after the Sixth Schedule, amended as aforesaid, the following new Schedu le shall be inserted, namely,-

"EIGHTH SCHEDULE

{See clause (aa) ofsub-section (2) of section  !

 

 

2 on cake and other solid                residuci;, whether      or      not

ground or in lhe fonn

ofpclleu

)            Oi=tly m!uc<d iron

 

 

 

 

 

 

 

 

 

 

2306.1000            S%

 

 

 

 

n.oo             S%

4       Oilseeds   meant   for    Respective

sowing.                          hc-adin&-$

S%           Import lhertof subject to the condition that the concerned department of the Oi\'ision dcatin; with lhc subjc:ct­ nu1ttcr of oil seed certifies that the imp<>rted seeds arc fungicide and insecticide treated and are mcan1 fQr 50\\'ing.

s     .R..r..l.rf.c.ouon and ginned

6      Plant and machiner)' not

Respective

headings

Rcspcctivc­

S%                  On•mport

 

S%          (i)             On import

 

or such pianl and

manufacturtd loc.llll)'

and       h$ving       nn

compatible           local substitutes

hcad 1ng..,.

 

 

 

 

 

 

 

 

 

 

 

 

(ii)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(iii)

machi1lCt)' by registered manufrict1.1rcrs. p06t-datcd cheque($)     equal     to     lhe.

differcnti111 amounl of sa:les taX payable a.t impM stage, shall bt submitted to the cuscoms 111.1lhoritic:s.. "'flich shall be returned on fumish;na proor or filing of first sales tax rttum after impOrt of sueh niachinery. showing thoimport of such machinery;

On impon by comn,creial importers., &OOd·for·pa)mcnt cheque. bank guaninlcc, pay ordC'r ot tteas\il')' clWla.... sOOw;nc depooi equal lo !he differcnlial amount of saJes tax pa,ynblc at i1nport stag(, shall be submitted to the customs 11.uthoi;tics, "'hich shall be rctuntcd back, or as the case m "y be, refunded, after evidence of subsequent supply 10 rcgister<d manufac:curers ot industriaJ usas is fumished to the customs auihontics;

Supply of su<h imported plant

snd machinery by eomnlercial importers  to unreg_is1ered

persons or ptrlOnS other than

manufac.1urci·s shall be lieblc

10 stand.ard rate of 1ax. Md evident<: to lhlll cffccc shall be produced IQ the cus101ns authorilics for r¢fell$c of 1hc 2bQvc mcnt10fled insllumcnts

or refund or 1hc amount paid

at inipon s1agc,

 

(iv) Sobscquc,.  sopplr  of  pl""' and machinery Jmponed or acquirtd by register«! nlanufacturers 10 unregistered persons or persons other lhan 1na11ufaCluu:rs shall be liable to tax at standard rote;and

(v) the 't'alidf(y period  of instruinei11S furnished ui1der th.is provision :;hull not b¢ lei,.,.   than   one   hundred   a'.ld

"'' "<Yda>•

&plgngtion.- t"or the purposeof this

on. pl3'lt 3'ld machlll<f)' means such plant and madunety as i$ used in the- manufac.turc Of production of goods.

 

Tablc-2

 

Plant, machinery, e(\tiipment and apparatus, includ ing capital goods, specified in column (2) of the A nnexure below, falling under the HS Codes specified in column (3) of that Annexure. shall be charged to sales lllx at the rate of five percent , subject to the following cond itions, besides the conditions specified in column (4) of the Annexurc, namely:-

 

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

 

            the Chief Executi ve, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and fonnat as per Annex-A that the imported items are the company's bonafide requirement. He shall furnish all  relevant information Online to Pakistan Customs Computerized System against a specific user ID and password obta ined under section 1550 of the Customs Act, 1969. Jn a lready computcriied Collectorates or Custom s stations where the Pakistan Customs Computerized System is not operational, the Project Director or any other person au thorized by the Collector in this behalf shall enter the requ i site information in the   Pakistan   Customs  Computerized   System   on   daily   basis,

whe!'eas entiy of the data obtained from  the  customs  stations wh ich have not yet been computerized shall be made on weekly basis; and

 

               i n case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furn ish complete details of the machinery, equipment and components required for the complete plant, duly supported  by

the contract, lay out plan and drawings.

 

Expfanalion.-Jn this Table the expression, capital goods mean any plant, machinery, equipmei1t, spares and accessories,classified in chapters 84, 85 or any other chapter of..the Pakistan Customs Tariff, required for-

           the manufacture or product ion of any goods, and includes refractory bricks and materials requ1ired for setting up a furnace, catalysts, machine tools, pac:kaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollutiOn control and the like; or

 

            use in mining, agriculture, fisheriE:s, animal husbandry, floricultu re, horticulture, livestock, dairy  and  poultry industry.

 

Annexure

 

S.No

 

Description

 

PCT heading

Conditions

(I)

 

Machinery

(2)

and    equipma1t

 

f'br

(3)

Respe.ctive Headings

(4)

Nil

development  of grnin handling  Md

storage facilities.

(v)      Cool chain machinery '1nd c.quipmenc                                       Rcspc-ctivc  Headings                                                   Nil

(vi)     followln,g itcnlS imponed b)' Call

Ccntc.rs,         Business       Prpccss ing

 

Nil

 

Omsou,cing facilities duly apptoved

by the Pakistan Tclccommunic1.-lion

 

Authoiity.

{I) Telephone sets/head sets.

8517.1100

{2)Cat 5/Cat 6/Powe? c-ablcs

8544.4990

(3) PABX Switch

8517.6290

(4) Plasma TV

8528.7212

128               TllE GAZElTE OF PAKISTAN, EXTRA . JUNE  26. 2014             (PART I

 

(I)                               (2)                    (3)

(4)

(3)  Ocdica1ed   telephone  exchange S)'Stern ror call ccntc:-rs.

 

·(6) Olhcr (digital call recordel'.<)

 

4         I Machinery. equipment. 111a1ctials. capital   goods.  spccialiud   vehicles (4x4 non lu.xury) i.e. $inglt or double cabin   p1cL-ups. accessories.   spares. chcmteals and consumables: mcM.I for mi xplorat phase 2.ConstNChOn machinery. equipment

and   speci1li1,cd  vthic1es. excluding

passcn aer \'ehicles, rmportcd on tcn\pOrru')' basis as required for the exploration pht1sc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

s.     Complete              plan1s          for         relocated

industries.

 

            Machinery, equipment and other capital goods rnean1 for in itial installat ion.balancing. modetn ization, rcpl11eemcnt or expansion of  oil rcfinina (n11ntral oil. hydro- criKktng and other value added petrOleum p<odUCIS               peuochcmical and pcuochcmieal nsuum products including fibers and h\')' chen\ica.I industry.   cryogenic    facility    for cth)' cne s1oragc and handling.

8517.6290

 

 

8Sl9.R990

Rc.spcccivc Headings  1.  This  conctss1on  $hall  be

a\'ailablc 10 those Mineral E'.<.ploct1ion and C:<traction Comp.10. or lhcir authonled opcraiors 0t c:ontracsnrs \\>ho hold permits. lioen.$C'S, Jcucs

and who enter intoagrccnltnts

with lhc Oovcmmcnt of Pakistan or a Provincial Government.

         TempQrurily    imponcd

goods shall be dea. d ugainst a  scc.irity  in  1hc fot1u  of  a p0st·di1tcd  cheque  toe  the differential runount bctwttn the statulory n\t( O( CU!IOmS duty  and  sales  tu and  the amoun1  payable  unda  lhis no1iflC81.ion, along with  an unde.uking          10                                        pay         th< customs dut)'.and sales tax at

lhc: statutory ra1cs in case such goods arc not re-exported on

conclusion of the project.

    The goods shall not be sold or otherwise disposed of "''ithou t priOf approval of lhc fBR   and   the  payment   of

customs  duties  J..nd  taxes

lcviablc at the time of import. These shall howev<t b< allowed lo be trll'ISftrrcd to other cn1111cd mining companie! wi\h prior approvJI of rhc Board

(3)                                                                          tcspccii,,c Headings    rr\il

 

 

Respective Headings                     Nil

building/snuc1urcs of a height of 100 ft and above and it \"<'lrious items/ co1nponenls oonsisting of the foltowi11g,  namely:-

and imported b)' the construction        companies registered with the  Pakistan

£nginee-ring Council:

(a)                Plas1ic tube.

3917.2390

(ii) the system is to be procured from a we.11 renowned international manufacturer:

(2) Plastic tic slot fillers/plugs.plastic

3926.9099

{iii) a certificate front one of

cone.

 

the    following    hnernational

 

 
Pre-shipment         lnsp«tion Coinpanies/Suf\•cy f imls to the extent that all the cqn1ponents/pa11S are to be used in the Proprieta.iy Fotffi\\'Otk Systern for construction of structures/ building. of m()rt than  100 feet height is prod uced. namd:-

 

 

 

(3) Standard steel  ply pands, Spe.eial sized  steel  ply  panels,  wedges. tube

7308.4000

(a) Messrs Lloyds of London:

elamps (H-Type & G Type}, push/pull

 

(b)     Messrs Quali1y Tech.

props,    brackets    (slfutture).    st   .1

soldiers     (suuc-1urc).    drop     h'Rd,

 

LLC: (¢)    Messrs J\llS: (d)

Messrs      Bureau      Vcritas;

stsndard, pr<.>p tic, buard rail post (structu re). ooupler brace. crultilcvcr flame, decking beam/Infill lx--am and

 

and (e)   Me<$" SGS;and (iv)

·n1c        Pakistat1 Engine¢ring C.Owlcil shall ce.rtify that I.he

doorway angles.

 

imported                            Proprietary

Fonnworl:s System confonn to ·the requiremenl of lhe C<1rnpany·s project.

 

(4) Lifting Unit (Sttucturc)

7308.9090

-do·

(S)   Bolts,   tic-   bohs.  anc-hor   bolt

7318.1590

-do-

assembly   (fastener}.  anchot   screw

 

 

(f".\Steoer).

 

 

(6) Nuts

7318.1690

-do-

(7) Steel pins.tic\Ying nul (fastener),

731$.1900

-do-

(8)   Steel   vr.ishcrs.  "''Iller    plate

7318.2290

-do-

(fast..-ncr).

 

 

(9)  Adjustable base j :1ck (thread rod wilh nut and stool plate). adjustable

8425.4900

-do-

fork head (thrc.. dcd rod \Vith m.n and

 

 

                steel channel .                                                                                                                          

 

Annex-A

 

 

:-. r:>'.IFT  orl    r:·!                                      IRtguhu"!Joui!'ltlrit>'Co),

-

of Rq:ub:ory;iutbo:i:)'

(I)                                                                                                                                                  (2)

(J)

O.: i6ofln;i111zcod\ (:e   11;;.:,;.by 1  e 111:rruc111i>\'. o.>flb.'. tn;>orti:is tompny)

<ioods itn  ntd (Collo.:1or'lttor..ro  r1)

 

u

0.-sc;.-j;l:l«\

Speu

C'L"StQ'.l'l

Out)'    iat.:

(ap;1h ..

iblc)

S:1fo::' 1'(1

i"11"pp!k.·.obk)

 

 

!::

l"

UOi

Qv:inii:)'

tml)(l(ltil

Colle  nrii:t

('RN/

 

l)At ¢   "

('R.Xt

ll

l"o.

M.J.ch

XI).

(')

())

(6)

(7)

(8)

(9)

(iO)

(U)

(12)

(i))

11.:)

US)

 

 

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

 

Signature of Chief Executive,or the person next in h iernrchy duly authorized by the Chief Executive

 

Name -----------

 

N.I.C. No. -------------

 

NOTE :-!n case of clearance through Pakistan Customs Computerized System, the above information shall befurnished on line against a specific user J.D.and password obtained under section 155D of the Cusroms Act, 1969.

 

Exolanation.-

 

Chief Executive means.-

 

I .   owner of the firm, in case of sole proprietorship; or

 

(iii)   partner of finn baving major share, in case of partnership finn;or

 

(iv)   Chief  Executive  Officer  qr  the  Managing  Director  in  case  of limited company or multinationa l organ ization;or

 

(v)     .            Principal Officer in case of a foreign company.

 

 

 
Annex-B

 

 

 

 

O...::iilJ or ln;111t i;l:..xl (1¢  11¢  fUiod by 1J..ie t:itho:i.rod  ofrJ.:(r of l!lo Rq:,  .lury

1\111hodt ')

HS

Cod.,.

Oese:ri;i1iot1

 

Cai.torn.

(U.)'    :'\ltC

(llppl b-!c)

r:t(

(liobk)

 

 

Q: :r.1ty

i r:t.U

r('ll1o;C:¢{11:t

 

 

 

 

fl2l

('R,". 'IM.c'.i.

 

C.l,.<<

CitN.t

M:id1

!\(I,

{!()

o.

13)

(ol )

 

 

 

 

 

 

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

 

Signature                                                 Designation            

NOTE:-ln ct:1se of clearance through Pakistan Customs Computerized System, the above information shall befurnis hed on line against a specific user l.D.and password obrained under section 155D of the Customs Act, 1969. ";and

 

( I 2) After the Eighth Schedule, inserted as aforesaid, the following new schedule shall be added, namely:-

 

"NINTH SCHEDULE

[See sub-section (38) of section 3]

 

(l)

<2l

(3)

(4)

(5)

s.

Description I Specification of Goods

Sales tax

Sale$ tax

Sales tax. on

No.

on im port

(chargeable

supply

(payable

at the time

(payable at

by

of

tinte of supply

importer

registration

by CMOs)

.at the

oflMEl

time of

number by

i1nnort)

CMQsl

 

 
TABLE

 

 

 

 

 

 

 

 

 

I.

Subscriber ldent1ficaHOn Module (SLM)

Cards

 

 

Rs. 250

2.

A. LO\\' Priced Cellular 1v1obilc Phone!'or

Rs. 150

Rs. 150

 

 

Satellite Phones

 

 

 

 

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

 

 

 

 

(ji) Screen size:2.6 inch es or less

 

 

 

 

(iii) Koy pad

 

 

 

 

B.      ·ledjum    pciced  Cellular  Mobile Phones or SateJ!jts- Phones

Rs. 250

Rs. 250

 

 

(i)  One or l\\'O carneras: between 2.1 to

 

 

 

 

l0 mega-pixels

 

 

 

l <lll                (2)                                           (3)                              (4)                                    (5)

(ii) Screen si?.e:between 2.6 inches and

5.0 inches

(iii) Microproccssor: less than 2 GHZ

 

C.     tnarl   Cellul ar   Mobjle   Phqnes;   or      Rs. 500

Sa{Ollile Phones

(i)  One or t\\'O cameras: I0 mega-pixels and above

(ii)  Touch Screen: size 5.0 inches and

above

(12)           4GB or higher Basic.V\emory

(13)Operating system of the type JOS. Android V2.3, Android Gingerbread or higher,Windows 8 or lllackberry RIM

(14)Micro-processor: 2GHZ or higher.

dual core orquad core

Rs. 500

 

LIABILITY. PROCEDURE AND CONDITIONS

 

(a)      In case of the goods specified against S. No. 1 of the Table, the liability to charge, collect and pay tax shall be oo the Cellular Mobile Operator (CMO) at the time of supply. Incase of the goods specified against S. No. 2, the liabi lity to pay sales tax at the time of import shall be on the imponer, and the 1iability  to  charge, collect and pay sales tax. payable on supplies  shali be on the Cellular Mobile Operator at the time of registering International Mobile Equipment  ldentity (IMEl) number in his system.

 

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

 

(c)          i)    No!MEI shall  be registered  in  his system  by a Cellular  Mobile Operator without charging and collecting the sales tax as specified i n the Table.

 

(d)         The Cellular Mobile Operator shall deposit the ·sales tax so collected through h is monthly tax return in the manner prescri bed in section 26 of the Sales Tax Act; 1990 and rules made thereunder.

 

(e)       TI1e Cellular Mobile Operator shall mainta.i n proper records of all

£MEI numbers registered for a period of six years, and such records shall be produced for inspection, aud it or verification, as and when  required,by an authorized officer of Inland Revenue.

 

(f)           The l'akistan Telecom munication Authority shall provide data regarding IMEI numbers registered with other Cellular Mobile Operators to prevent double taxation on the same!MEI number in

case of swilching by a subscriber from one operator to another, and to provide data regarding registration of !MEI  numbers to the Board on monthly basis.

 

(g)            No adjus tment of input tax shall be admissible to the Cellu lar Mobile Operator or any purchaser of cellu lar mobile phone against the sales tax charged and paid in terms of this Schedule.

 

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

 

Note :- Notwithstanding anything contained in any other law for the lime being in force, the levy, collection and payment of sales tax under notification No. S. R. 0. 460(1)/2013, dated the 30'h May, 2013, shall be deemed to always have been lawfu lly and valid ly levied, collected and paid.";

 

(iv)     Amend ment of Act XVII of 1996.-ln the Pak istan Telecom­ munication (Re-organization) Act, I 996 (XVII of 1996), the following further amendment·shall be made and shall be deemed to have been so made on the I st day of March, 20 14, namely:-

 

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

 

(v)        Amendments of Ordinance XX1V of 2001.-ln the Controller General of Acc-0unts (Appointment, Functions and Powers) Ordinance, 2001 (XXIV of 2001). in section 5, in clause (b),-

 

(iii)     after the word "may" the commas and words ", with the approval of the President," shall be inserted; and

 

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

 

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

 

(vi)      Amendmen ts of Ordinance XLIX of 2001.-ln lhe Income Tax Ord i nance, 200 I (XLIX of 200 I ). the following further amendments shall be made,  namely:-

 ( I )   in section 2,--

 

(a)        clauses (8), (9), (IO) and (II) shall be re-numbered as clauses (9), ( I 0), (1 1) and (8) respectively;                                             ·

 

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

 

"(23A) "filer" means a taxpayer whose name appears in the active taxpayers' list issued· by the Board from time to time or is holder of a taxpayer'scard ;'';

 

(c)        in clause (29),-

 

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

 

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

 

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

 

(d)        after clause (35B), the following  new clause   shall be inse11ed,   namely:-

 

"(35C) "non-fi ler" means a person who is not a filer;";

 

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

 

"(59B) "Special Judge" means the Special Judge appointed under section 203;"; and

 

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

 

"(61A) "stock  fund"  means a  collective.  investment  scheme or  a  m utual   fund  where  the  in vestible  funds  are

.invested by way of equity shares in companies, to the extent of more than seventy per c.ent of the investn1ent;''";

(a)       section 4A shall be omitted;

 

(b)        i n section  8,  in  clauses  (d) and  (e), for the word  "sections", the word "section" shall be substituted;

 

(c)        in  section  13,  in  sub-sect ion  (8), the  word  "the", occu rring last, shall  be omitted;

 

(iii)      in section 1 8, i n sub-section (3), for the word "lesser", occurring twice,  the word    "lessor" shall be substituted;

 

(iv)       in section 21, in clause (e), after the word "fund",occur·ring for the second time a comma shall be i nserted;

 

(v)        in section 31, in sub-section {I), for the expression "Banking Tribunals Ordinance., 1984" the expression "f inancial Institutions (Recovery of Finances) Ordinance, 200 I (:XLVI of 200 I)" shall be substituted;

 

(8)   i n section 37, in sub-section (lA),  the words and comma ''held for a period upto two years,"shall be omitted;

(6)         in section 37A, in sub-section ( I ),-

(a)        first proviso shall be omitted;

{b)     in the second proviso, the word "further" shall be omitted;

(4)        in sub-section (3),  after the word "capital" the comma and

·words  '',debt securities" shall be inserted;

 

(5)       after sub-section  (3), amended  as aforesaid, the follo\ving new sub-section shall be inserted, narnely:-

 

"(3A)    For  the  purpose  of  this  section,  "debt  securities" means-

 

           Corporate Debt Securitie ; such as Term Finance Certificates (TFCs), Suk uk Certificates (Sharia Compliant Bonds), Registo!red Bonds, Commercial Papers, Participation Ter1111 Certificates (PTCs) and all kinds of debt instmmcnts issued by any Pakistani or foreign company or corporation registered in Pakistan; and

 

           Government Debt Securities such as Treasury Bills (T-bills), Federal Investment Bonds  (FIBs), Pakistan Investment Bonds . (P!Bs), Foreign Currency Bonds, Govern!lllent Papers, Municipal Bonds, Infrastructure Bonds and all kinds of debt instruments issued by Federal Government, Provincial Governments, Local Authorities  and other statutory bodies.'';

(5)           i n section 39, in sub-section (1),-

           in clause OJ, the word "and" shall be omitted;

             in clause (!), after the semicolon the word "and" shall be added;

 

              after clause  (I),  amended  as  aforesaid, the following  new clause shall be added, namely:-

 

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

 

( I J ) in section 49, after sub-section (4), for the full stop at the end a colon sha ll be substituted and thereafter the" following proviso shall be  added,  namely:-

 

"Provided tliat the income from sale of spectrum licences by Pakistan Telecommun ication Authority on behalf of the l ederal Govern ment after the first day of March 2014 shall be treated as income of the Federal Government and not of the Pakistan Telecommu nication Authority.";

 

( 12) in section 56A, for the word "onword", the word "onward" shall be substituted;    ·

 

(5)           in section 59AA, in sub-section (6), for the words "Central Board of Revenue"the word "Board" shall be substituted;

(6)           section 88A shall be omitted;

 

(7)           in section 92, in sub-section (I), for full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added,  namely,-

 

"Provided that if at least one member of the association of persons is a company, the share of such company or companies shall be excluded for the purpose of computing the total income of the association of persons ai1d the company or the companies shall be taxed separately, at the rate applicable to the companies, according to their share.";

 

(8)           in section I OOB, in sub-section (2), for clause (d), the following clause  shall  be substituted,namely:-

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

 

( 17) after section I OOB, amended as aforesaid, the following new section shall be inserted, namely:-

 

"lOOC. Tax cre'd it for certain persons.-(l) Non-profit organizations, trusts or welfare institutions, as mentioned in sub­ section (2) shall be allowed a tax credit equal to one hundred per cent of the tax payable, including mini mum tax and final laxes payable under any of the provisions of this Ord inance, subject to the following conditions, namely:-

(2)       retuni has been filed;

 

(VI)     tax required to be deducted or collected has b_een deducted 01·collected and paid; and

 

(VII)   withholding tax statements for the  immediately preced ing tax year have been filed .

 

(c)      Persons eligible for t.ax credit under this section include-

 

           any income of a trust or welfare institution or non-profi t orga nization from donations, voluntary contribu tions, subscriptions, house property, investments in the securities of the Federal Government and so much of the income chargeable under the head "income from business"as is expend ed in Pakistan for the purposes of carrying out welfare activities:

Provided that in the case of income under the head "income from business", the exemption in respect of income under the said head shall not exceed an amount wh ich bears to the income, under the said head, the same proportion as the said amount  bears  to  the aggregate of the incomes from ihe aforesaid sources of incorne.

 

            a tnist administered under a scheme approved by the Federal Govcnimcnt in this behalf and established i n Pakistan exclusively for tjle purposes of canying out such activities as are for the benefit and welfare of-

 

         ex-servicemen and servi ng personnel, including civilian employees of the Armed · Forces, and their dependents; or

 

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

 

            a trust or welfare institution or non-profit org8J'l ization approved by Chief Commissioner for the purposes of this sub-clause;

 

            income of a university or other educational i nstitution being ruo by a non -profit  organization  existing solely for educational purposes and not  for purposes of profit;

 

            any income which is derived  from investments in securities of 1he Federal Government, profil on  deb1 from scheduled banks,grant received from Federal Government or Provincia l Government or District Governmems, foreign grants and house property held under trus1 or other legal obligations wholly. or in part only, for rel igious or charitable purposes and is actually applied or fina lly set apart for applica1ion thereto:

 

Provided that nothing in this clause sha ll apply to so much of the income as is no1 expended within Pakis1an:

 

Provided further that i f any sum out of the amount so set apart is expended outside Pakistan, it shall be included in the total income of the tax year in which it is so expended or of 1he year in which it was  SCI apart, whichever is the greater, and the provisions of section 122 shall nol apply to any assessment made or to be made in pursuance of this proviso.

 

Explanation. -Notwithstanding anything  contained in the Mu ssahnan Wakf Validating Act, 1913 (VI of 1913), or any other law for the time being i n force or i n the instru men t relating to the trust or the institu lion, 'if any amount is set apa1t, expended or disbursed for the maintenance and suppo11 wholly or partially of 1he family, children or descendents of the author of the trust or the donor or, the maker of the institution or for his own maintenance and support during his life time or paymcn1 to himself or his family, children, rcla1ions or dcscendents or for the payment of his or their debts out of the income from house property dedicated, or if any expendi111rc is made other than for charitable purposes, in each case such expenditure, provision, setting apart, payment or disbursement shall not be deemed, for lhe purposes of this clause, to he for religious or charitable purposes; or

 

          any income of a rel igious or charitable i nstilution derived from volun1ary contributions applicable solely to religious or chal'itable purposes of the i nstitution:

 

Provided tha1 no1hing contai ned in 1his clause shall apply to the income of a private religious trusl which does no1 enure for the benefit of the public.'';

 

(d)           in sec1ion 113,-

 

           in suh-sec1ion (I), for!he words ·equal to one per ccnl of the person' s 1umover for 1hc year", rhe words ··the amount of minimu m tax computed on the basis of rates as specified in Division IX of Part I of First Schedule" shall be subst i1u1ed; and

 

(e)        in su b-section (2), i n clause (b), for ihc wo1ds·'an amount equal 10 one per cent of the person 's turnover for 1hc year'', the words ''m i ni mum tax computed on the basis of rares as specified in Division IX of Part 1 of First Schedule" shall be substit utcd;

 

(e)           after  section   1 1313.  the  following  new  section   I 13C  shall   be

inserted,namely:-

 

"U3C. Alternative Corporate Tax.- ( I) otwi1hsta nding anything contained in this Ord inance, for lax year 20 \ 4 and onwards, tax payable by a company shall be higher of 1he Corporate Tax or A l ternat ive Corporate lax.

 

(v)        For the purp()scs of this sec;tion .-

 

           "Accounting Income" means ihe accoun1in1 ',:>rofi t before Lax for lhc tax year, as disclosed i.n the financial statements or as a(ljustcd und · sub­ section (7) or sub-section (11) excludit\p , shMe from the associate rccogni 7.cd u nder equity met hod of  accounting:

 

            ''Alternative Corporate Tax" means  t he lax at  a rate  of   cvcntcen  per cent  of  a  sun 1  equal  10

accounting income less the amoun1s, a s SP':<:ificd

in  sub-section  (8), and determ ined  i n  ttccrmlance wi1h  provisions  of sub-setion (7) hercintft er;

 

            ··Corporutc Tax" means total lax payab le by the company, includ ing tax payab le  on  a ccou1lt  of 1ni ni m1un ·111x and final taxes payable, u nder uny of 1hc provisions of this Ord inance but nC!including those me111ioned i n sec1ions 8, 16 l and 162 <111d any amount charged or paid on accou111 of default su1·chargc or penalty and the 1ax pa yable u nder this section .

(vi)     The sum equal to accounting i ncoll\e, less any amour\! to be excluded H1crcfrom u nder sub-section (8), shall be treated as taxable income for the purpose of this section .

 

(vii)    The excess of Alternative Corporate Tax paid over the Corporate Tax payab le for the tax year shall be carried .forward and adjusted   against             the       tax          payable under

Division nof Part lof the f i rs\ Schedule, for following year.

(viii)  If the excess tax, as mentioned in sub-section (4), is not wholly adjusted, the amounl not adjusted shall be carried fonvard to the following tax year and adjusted as specified in sub-section

(d)   i n  that year, and  so on, but the said excess cannot be carried

forward to more than ten tax years immediately succeed ing the tax year for which the excess was first com puted.

 

faplanarion.-For the purpose of this sub-section  !he mechanism for adjustment of excess of Alternative Corporate Tax over Corporate Tax, s1>ecified in this section, shall not prejudice or affect the entitlement of the taxpayer regarding carrying forward and adjus tment of minimum tax referred to in section I l3 of this Ordiance.

 

             ff Corporate Tax or A lternative Corporate Tax is enhanced or reduced as a resu lt of any amendmen t, or as a resu lt of any Or(ler under the Ordinance, the excess amount to be carried forward shall be reduced or enhanced accord ingly.

 

            For   1he   purposes   of   determining   the   "Accounting Income", expenses shall be apportioned  between  the amoun( to be . excluded                           from               account ing                      income under              sub-section             (8) and  the amount to be treated  as taxable income under sub-section (3).

 

            The following amounts shall be excluded from accounting income for the purposes of com puti ng A lternative Corporate   Tax:-

 

exen1pt incorne

income subject io tax under section 37A and lina l tax chargeable  under'  sub-section  (7)  of  section  148, section    I 50,  sub-section   (3)   of   section    1 53,   sub­

section   (4) of sections  15'4, 156 and sub-section (3) of

section 233;

(f)             )          income  subjccl  to  tax  credit  under  section  650  and

658;

 

(g)          income subject to tax credit under section J OOC; and

 

(h)        i ncome of  the  company  subject  to  clause  (J 8/\) of Pa11-Il of the Second Schedule;

 

(9) The provisions of this section  shall  not  apply  to taxpayers chargeable to tax i n accordance with the provisions contained in the Fou1th, Fifth and Seventh Schedules.

 

( l 0) Tax credit u nder section 65B sna il be allowed agaiost Alternative Corporate Tax.

(l 1 ) The Comm issioner may make adju stments and proceed to compute accounting income as per historical accounting patter11 a!for provid ing an oppo1tunity of being heard.";

 

(f)              in section 1 14, i n sub-section (1), in clause (b), in sub-clause (ix),

after the word "is" the words "a resident person'' shall be inse1ted;

 

(e)           in section 122B, in the head ing and in sub-sections (I) and (2), for the words "Regional Co111missione1", whci·evcr. occurring, the words "Chief Commissioner" shall be substituted.

 

(f)              in section 127,-

 

(it) for lhe words ''taxation officer", the words "Officer oflnland Revenue"shall be substituted;

 

(3)        in sub-section (2), it1 clause (b), for the word ·'again", the word "against" shall be substituted;

 

(c)              in section 130, in sub-section (4),-

 

          in clause (b). the word ''or", occu1Ting at the end, shall be omitted;

 

             ) i n clause (c), for the foll stop, at the end, a semicolon and  the word "or" shall be substituted and thereafter the  following new clause shall be added, nameiy:-

 

'.'(d) a person who has, for a period of not 1.ess than ten years, practiced professiona lly as a cost and management accountant with in the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966).";

(d)              in section 148,-

 

(i)          i n sub-sect ion (7), in clause (d),-

 

(i)        in su b-clause (viii), .for the words "with Sales Tax Dcpanmcnl" the expression "under the Sales Tm< Act, 1990"sluill be substituted;

 

(ii)         in sub-clause (ix), for the words, "for sales tax purposes" the expression "u nder the Sales Tax Act, 1990,. shall be substituted ; and

 

(b) after sub-sect ion (8), the fol lowing new sub-section shall be inse1ted, namely :-

 

"(8A} The tax collected under th is section at the time of import of ships by ship-hrea.kcrs shall be fina l tax.";

 

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

 

"(3) No(withstanding anything contained in sub-sections (I) and   (2),   every    person    responsible    for    making    payment for directorship fee or fee for attending board meeting or such foe by whatever name called, shall at the time of payn;ent, deduct tax at tlic rate of twc.niy percent of ihc gross amount payable .

 

(4) Tax deductible under sub-section (3)  sh<Lll  be adjustahle.";

 

(V)           in section  150, for the expression "Division  !II of Part I" 1he

expression "Division Iof Pa it lll" shall be substituted;

 

(VI)         in section 151.

 

(a)       in sub-section (J ), after the word "Di vision" for the figure "I"

the figure " A" shall be substituted; and

 

(b)       in sub-section (3}, for the full stop, at the end, a colon shall he substituw<l and  thereafter the following proviso shall l;c added, namely :-

 

"Prov ided that in che case of a non-filer other than a company the final tax shall be equal to the tax deduct ible in t he case of filer and the tax ded ucted in excess of that shall be advance income tax adjustable against tax l ia bil i ty.";

(VII)        i n  section  153,.in sub-seciion (1), in clause(c),-

 

(C)    after the word and comma "contract,'', the words "including contract signed by a sportsperson"shal l be inserted; and

 

(D)      for the wo1·ds "other than" , the words "but not including" shall be substituted;

 

(VIII)      in section 156, in sub-section (3), after the word "under",occurring for the second time,the word and hyphen "sub-" shall be inserted;

 

(IX)         in section 159,-

 

(3)      in sub-section (!), in clause (b}, for the comma, a semicolon and the word "; or" shall be substituted and thereafter the following new clause sha ll be added,namely:-

 

"(c)     is subject to hundred per cent tax credit under section

I OOC,";

 

(4)        in sub-section (4), for the word "one", the word "on"sha ll be substituted;

 

(4)            in section 169, in sl1b-section (l), in clause (b), for the word "of ', occurring for the eighth time, the word "or" sha ll be substituted;

 

(5)           after section 18IA . the following new section shall be inserted, namely:-

 

"l.81AA. Compulsory registration in certain cases.--(!) Notwithstanding anything contained i n any law, for the time being in force, any application for commercial or industrial connection of electricity or natura l gas, shall not be• processed and ·such connection shall not he provided unless tlhe person applying for electricity or gas connection is registered un.der section 181 .";

 

(6)            in section. 203, in sub-section (!), for full stop at the end a colon shall be substituted and thereafter the following_ proviso shall be added,   namely:-

 

"Provided that the Federal Government may, by notification in oflicial Gazette, declare that a Special Judge appointed u nder section 185 of the Customs Act 1969 (IV of  1969) sbal l  have ju risdiction to try offences under this Ordin,ance.";

 

(7)           for section 23 IB, the followi11g shall be substituted , namely:-

 

"231J3.      Advance tax  on  private  motor vchicles.-(1)

Eve1y motor veh icie register ing authority of Excise and Taxation Department shall collect <idvance tax a1 the time of registration of a motor vehicle, at the rates specified in Division V II of f>art JV of

the First Schedule.

 

(2) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of transfer of registratio n or ownership or a private motor vch icle, at 1he rares spceified in Division Vil of Parr IV of the First Sched ule:

 

Pro'lidcd that no collection of advance tax under this sub· section shall be made on transfer of veh icles after five years from the date of fast l'egistration in Pakistan.

 

(3)  Every manufacturer of a motor car or jeep shall collect, at the time of sale of a motor car or jeep, advance tax at rhc rare speci ticd in Division VII of Pa11IV of the First Schedul<: from the person to whom such sale is made.

 

(4)            Sub-section ( l) shall no! apply if a person produces evidence that tax under sub-section (3) i n case of  a  locally manu factured  vehicle or tax  under  sect ion  148  i n the case of

·im ported veh icle was collected from !he Same person in respect of

the same vehicle.

 

(5)          The advance rax collected u11dcr this section shall be adjustable:

 

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

 

(a)         the Federal Governmen t;

 

(b)         a Provincial Governmen t;

 

(c)        a Local Government;

 

(d)         a foreign diplonuil; or

 

(e)         a d i plomatic mission in P_ak istan.";

 

(35)        after section 235, the following new sections shall be  inserted, namely:-

 

"235A. Domestic electricity consurniption.- (l ) There shall be collected advance tax at the rates s.pecilied in Division X IX of Pa11IV of the First Schedule on the amount of electricity bi ll of a domestic consumer.

 

(2)       The person preparing elecLricity consumption bil l shall charge advance tax under sub-section (I) in the manner electricity consumption charges are charged.

 

(3)       Tax collected under this secti•:Jn shall be adju stable again st tax l iabil ity.

 

23513.  Tax  on   steel   melteri;,   re- rollers   etc.--(I) There shall be collected tax from every steel melter, steel re­ roller, composite steel u nits, registe;red for the purpose of Chapter X I of Sales Tax Special Procedure Ru les, 2007 al the rate of one rupee per unit of clcccricity consumed for t he production of steel billets, ingots and mild steel (MS 1>roducts) excluding stainless steel .

 

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

 

(3)      The tax collected under sub- section (1) shall be deemed to be the tax required to be ded ucted u nder sub­ section ( l) of section I 53, on the payment for local pul'Chasc of scrap.

 

(4)   Tax collected under su b-section ( I ) shall be non­ adjustable and cred i t of the same shal l not be allowed to any person.'';

 

(36)         in section 236B,-

 

(a)        ill' sub-section  (2),  for  the  words  "person  preparing" the words "airline issuing" shall be substil'uted;

 

(b)        after  sub-section  (2), amended  as aforesaid, the following new sub-section shall he inscrted,"nam.cly,-

 

"(2/\) The mode, manner and t inrre of collection shall be as may be prescri bed .":

 

(37)        after section 236J, 1he following new sections shall be inserted, namely:-

 

"236K. Advance tax 011 purchase or transfer of immovabfe property.-{!) Any person responsible for registering or attesting transfer of any immovable property shall at the time of registering or attesting the transfor shall collect from the purchaser or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.

 

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

 

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

 

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

 

236L. Advance tax on purcha se of international air ticket.-(!) Every airline, issuing ticket for journey originating from Pak istan, shall collect advance tax at the rates specified in Division XX of Part IV of the First Schedule, on the gross amou nt of international air tickets issued to passengers booking one-way or return,from Pak istan . ·

 

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

 

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

 

(4) The advance tax collected u nder sub-section ( I ) sha ll be adjustable.

 

236M. Bonus shares issued by companies quoted on stock cxc.hangc.-{l) Notwithstand ing anything contained in any law for the time being in force, every company, quoted on stock exclra.nge, issuing bonus shares to the shareholders of the company, sha ll withhold five per cent of the bonus shares 10 be issued .

 

(2) Bonus shares withheld under sub-section (I) shall only be issued 10 a shareholder, i f  the com pany collects from the shareholder, tax equal to five per cent or t he va l ue of ihe bonus shares issued 10 che shareholder including bonus shares withheld, determ ined on the basis of day-end price on the first day of closure of books.

 

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

 

(4)       If  the  shareholder  fails  to  make  the  payment  of  lax u nder sub-section (2) with in fifteen days or the company fails to collect the said tax witli i n fifteen days, the company shall deposit the bonus share withheld under sub-section (I) i n the Central Depository Company of Pakistan 'Lim ited or any other  entity  as may be prescribe.([.

 

(5)       Bonus shares deposited in the Central  Depository Company of Pakitan Lim ited or the emity prescribed under sub­ section (4) shall be d isposed of in the mode and manner as may be prescribed and  the  proceeds  thereof  shall  be  paid  to  the Comm issioner, by way of credil lO the Federal Government.

 

(6) lssua11ce of bonus shares shall be deemed to be the. income of the shareholder and  t he tax collected  by the company u nder sub-section (2) or proceeds of the bonus shares d isposed of and paid under sub-section (5) shal l be treated to have been paid on hchal f of the shareholder.

 

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

 

236N. Bonus shares issued by companies not  quoted  oo stock exchange.-( I ) Notwithstanding anything contained in any law for the time being i n  force, every  company,  not quoted on stock exchange, issu i ng bonus shares to the shareholders of the company, shall deposit tax, within fifteen days of the closure of books, at the rate of five J}er cent of the value of the bonus shares 011!he first day of closure of books, whether or not tax has been collected by tbe company under sub-section (3).

 

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

(3)          A company liable to dcposi1 lax under sub-section (l), shall be entitled to collect and recover the tax deposited under su b· section (!), from the shareholder, on whose behalf the tax has been deposited, before the issuance of bonus shares.

 

(4)          J f a shareholder neither makes payment of tax to the com pai1y nor collects  its bonus shares, within three months of the date  of  issuance  of  bonus  shares, the company  may  proceed  to d ispose of its bonus shares to the exlent it has paid tax on its behalf under sub-section ( l).

 

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

 

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

 

(38)          in section 239, in sub-seciion (13), for the words and comma, "amended, mod i fied", the words and  comma  "amend,  mod ify" shal l be substituted;

 

(39)          in the FIRST SCH EDULE,-

 

(!)     in PartI,-

 

{A)      i n Division 1,-

 

(i)         after paragraph. (IA), lhe follo\ving new paragraph shall be inse11ed, namely:-

 

"(lB) Where the iaxabJe income in a tax year, other than income on wh ich the deduction of tax is final, does not exceed one mi llion rupees  of a pe1·son-

 

(i)          holding  a  National  Database Registration Authority's Computerized Nationa l Identity Card for disabled persl'>ns: or

 

(ii)          a taxpayer· of the age of not less than sixty years on the first day of that 1ax year, lhe tax l iability on such income shall be reduced by 50%.";

 

(ii)    paragraph (2) shall be omitted.

 

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

 

"Provided further that the rate of tax imposed on ihe taxable  i1icome of a company, other than a banki ng company shall be 33% for the tax year 20 15.";

 

             For Division III, the following shall be substituted, namely:-

 

"Division Ill

 

Rate of Dividend Tax

 

The rate of tax imposed under section 5 on dividend received from a company shall be-

 

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

 

(b)         I 0%, in all other cases:

 

Provided that the dividend received by a person from a stock fund shall be taxed at ihe rate of 12.5% for tax year 20 I 5 and onwards, if d ividend receipts are less than capital gains;

 

Provided fu 11her that the dividend received by a company from a collective invest ment scheme or a mutual fund, other than a stock fund, shall be taxed at the rate of 25% for tax. year 20 15 and on\vards.'

 

             in Division-Vil, for the Table, the fol lowing shall be substituted, namely:-

 

'TABLE

 

S.N o.                                              Period .                                                           Tax Year.                    Rate of tax.

I                                                            2                                    3                           4)

I.       Where  holding   period   of a                          201l                       10%

security         is           less             than           six               201°2                     10%

months.                                                            20 l 3                       10%

20 14                       10%

 

2.  Where   holdi11g  period   of  a                     20 11                     7.5%

security                is  Jnore         than   six               20 12                                8%

months  but   less  than   twel ve                        20 13                      8%

months.                                                           20 14                                  8%

 

TAX Y EAR 20 15

 

3. Where holding period of a security is less  than  twelve mon ths.

12.5%

4. Where hold i ng period of  a security is twelve months or more but less than twenty-four months.

10%

 

5.                          Where  holding  period  of  a                                                              0% security is twenty-fou r months

or 1nore.n

 

 

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

 

(E)      in Division VIII, in the TABLE, after S.No 2, the followi ng new S.No and correspond ing entries 1'Claring thereto in columns (2) and (3), shall be adde.d, namely:-

 

"3. Where holding period of                                                                                       0% immovable propcrfy is more

than t\vo ycars.H;

 

(F)     atkr Division V III, amended as aforesaid, the following new Division shall be added, namely,-

"Division  IX

Minim um tax under section 1 13

 

 

S. No.

Person(s)

'v1inimum Tax as percentage of the person 's turnover for lhc year

(I)

(2)

(3)

I.

(a)          Oil marketing companies, Oil

refineries, Sui Southe-rn Gas Company Limi Led and Sui Norrhel1l Gas Pipelines Limited ( for the cases where annual

turnover exceeds rupees one billion.);

(b)          Pak istani A irl ines; and

(c)          Pou lt1y industry including poull1y breed ing, broiler production, egg

production and poultiy feed production.

0.5%

2.

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

(b)         Petroleum agents and d istributors who are registered under the Sales Tax Act. 1990;

(c)         R ice mills and dealers; and

(d)         Flour mills.

0.2%

3.

Motorcycle dealers registered  under the Sales

Tax Act, 1990.

0.25%

4.

In all other cases.

!%"

 

 
(ll)        for Part II, the following shall be substituted, namely:- ''PART-II

RATES OF A DVANCE TAX

lSee Division II of Part Y of Cbaplcr X]

 

The rate of ad vance tax to be collected by the Collector of Customs under seclion 148 shall be-

 

S.No.

Persons

Rate

(!)

(2)

(3)

I.

(i)       Industrial undertak ing impo1ting

rcmeltablesteel (PCT  Heading 72.04) and directly reduced iron for its own use:

1 % of import value as increased by

 

 

(l)

(2)

(3)

 

(ii)             Persons importing potassic fertilizers in pursuance of Economic Coordination

Committee of the cabinet's decision No.ECC-

0

155/12i2004 dated the 9"' Dcccmber, 2004;

(iii)           Persons importing urea; and

(iv)          Manufacturers covered under Notificat ion No.

S.R.O. I 125(1)/20 11 daced the 31" December,

20 I I dated the 3 I"December. 20 11.

custo111s-

duty,      sales

tax          and

federal excise duty

2.

Persons importing pu lses

2% of impo1t value                        as increased by customs- duty,                sales

tax          and

Federal excise dutv

"J.

Commercial  importers  covered  under Notification  No.

S.R.O. I I 25(1)i20 I I dated the 3I" December, 20 I I.

3% of impo1t value as increased by customs-

dury,     sales

tax          and

federal excise dutv

4.

Sh in breakers on inmoit of shios

4.5%

5.

Industrial undertakings not covered under S. Nos. !·to 4

5.5%

6.

Comoanies not covered under S. Nos. I to 5

5.5%

7.

Persons not covered under S. Nos. I to 6

6%"

 

(lll)  Part!IA shall be omitted;

 

(i)          in Part Ul,-

 

           for Division I, the following shall be substituted, namely:-

 

''Division J

Advance Tax on Dividend

 

The rate of tax to be deducted under section 150 shall be--

 

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

 

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

 

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

 

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

 

 

 

 

'

Stock Fund

Money market Fund, lncome Fund or any other fund

lndividual

10%

10%

Company

10%

25%

AOP

10%

10%

 

Provided further that in case of a stock fund if dividend receipts of the fund arc less than capita l gains, the rate of tax deduction sha ll be 12.5%.

 

Division IA

 

Profit on Debt

 

The rate of tax 10 be deducted under scctior1 I SI shall be I0% of the yield or profit for filers and 15% of the yield or profit paid, for non-filers:

 

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

 

(b)        in Division Ill,-

 

(A)       in paragraph (I), in sub-paragraph (b),-

 

(i)         in clause (i), for the figu re "3.5'', the figure "4" shall be substituted; and

 

(ii)      in clause (ii), for the figu re "4", the figure "4 .5" shall be substituted;

 

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

 

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

 

(ii)      )                        i n clause (b), for the figure "8", the figure "IO'' shall be substitu ted ;

 

(C)       in paragraph (3), ·

 

(i)         i n sub-paragraph  (i), for the figure ·'6", the figure "7"

shall be substituted;

 

(ii)      in  sub-paragraph  (ii). for  the  figure '·6.5", the  figure

"'7.5'' shall be substituted; and

 

(iii)   )  a!\cr  sub-paragraph   (i i),  ame.nded  as  aforesa id,   the following new su b-paragraph shall be added, namely:-

 

"(iii) I 0%  of  the  gross amount  payable   in  case  of sportspersons.";

(c)        in  Division  IV,  in paragraph  (3), for the figure "OS', the figure "I" shall be substituted:

 

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

 

(V)         in Pait JV.-

 

(a)         for Di v ision ll , the following shall be substituted, namely:-

 

"Divisinn Tl

 

Brokcni;::c and Commission

 

The rate of collection under sub-section (I) of section 233 shall be.-

 

(a)        7.5% of the amount of rhc payment. in ca c of advertising agent :

 

(b)         12% of t he amou nt of payment in all other cases.";

 

(b)         in Di vision Ill,

 

(i)      for clause (3), the fol lowing shall be subst ituted, namely:-

 

''(3)  i n   case  of  other  private  motor  cars  shall  t>c  as following,-

 

 

S.

No .

Engine capacity

for filers

for non-ti ler

( I )

(2)

(3)

I

(4)             !

l.

upto l OOOcc

I    Rs. J ,000

;

lls. 1,000

 

2.

 

IOO l cc to l199cc

Rs. 1,800

 

-

R. 3,600

 

Rs. 4,000

3.

I 200cc to l299cc

Rs 2,000

 

4.

l 300cc tol499cc

Rs. 3,000

Rs. 6,000

s.

I SOOcc to l599cc

Rs. 4,500

Rs. 9,000

6.

I 600cc to  l999cc

Rs. 6,000

Rs. 12,000

7.

2000cc & above

Rs. 12,000

Rs. 24,000"

 

 

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

 

"(4) where the motor vehicle tax. is collected in Jump sum,-

 

s.

No.

Engine ctpacit)'

for filer

for non-filer

( I )

(2)

(3)

(4)

I.

upto IOOOcc

Rs. 10,000

Rs. 10,000

2.

IOO lcc to l l 99cc

Rs. 18,000

Rs. 36,000

3.

l 200cc to I 299cc

Rs. 20,000

Rs. 40,000

4.

1300cc to l 499cc

I

Rs. 30,000

Rs. 60,000

5'.

l SOOcc to I 599cc

Rs. 45,000

Rs. 90,000

6.

I 600cc to J 999cc

Rs. 60,000

Rs. l 20,000

7.

2000cc and above

Rs. 120,000

Rs.240,000"

 

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

 

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

 

(e)         for Division Vil, the following shall be substituted, namely:-

 

"Division Vil

 

Advance tax on purchase of private motor car aod jeep

 

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

 

 

S. No.

Engine Capacity

Tax for filer

Tax for

Non-filer

(I)

(2)

(3)

(4)

I.

Upto 850cc

Rs. 10,000

Rs. 10,000

2.

85 lcc to I OOOcc

Rs. 20,000

Rs. 25,000

3.

I OOlcc to 1300cc

Rs. 30,000

Rs. 40,000

4.

130Ice to  I 600cc