Updated: Sunday July 02, 2017/AlAhad
Shawwal 08, 1438/Ravivara
Asadha 11, 1939, at 05:02:34 PM
The Finance Act, 2017 (along-with Bill, 2017)
to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2017, and to amend certain laws
WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2017, 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, 2017.
(2)
It extends to the whole of
(3) It shall come into force on the first day of July, 2017 except clauses 2(6), 3(7), 4(10) and 5(3) which shall have effect on the next day of assent given to this Act by the President of Islamic Republic of Pakistan.
2. Amendments of Customs Act, 1969 (IV of 1969) ─ In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely:-
(1) in section 2,-
(a) in clause (la),-
(i) for the word or, a comma shall be substituted; and
(ii) after the figure 144, the word and figure or 147, shall be inserted;
(b) in clause (x), the word and shall be omitted; and
(c) in clause (y), for full stop at the end a semicolon and the word and shall be substituted and thereafter the following new clause shall be added, namely:-
(z) controlled delivery means supervised and coordinated operational activities that allow suspected consignments of prohibited and restricted goods, including items mentioned in clause (s), to pass out of, through or into the territory of Pakistan, with a view to identifying persons involved in the commission of an offence cognizable under this Act.;
(2) in section 3A, in the marginal note, for the words Federal Board of Revenue, the word Customs shall be substituted;
(3)
after section 3AA, the following
new section shall be inserted, namely:- 3AAA. Directorate General of
Corridor.- The Directorate General of China Pakistan Economic Corridor shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.;
(4) in section 7,-
(a) for the words Federal Excise, the words Inland Revenue shall be substituted; and
(b) after the word and comma Police,, the words including officers of National Highways and Pakistan Motorway Police, shall be inserted;
(5) after section 8, the following new section shall be inserted, namely:-
8A. Uniform.- The Board may, by notification in the official Gazette, prescribe rules for wearing of uniform by officers and staff of Customs Service of Pakistan.;
(6) in section 19,-
(a) in sub-section (1), for the words "Federal Government", the words and comma "Board, with prior approval of Minister-in-charge, and" shall be substituted; and
(b) in sub-section (5), for full stop a colon shall be substituted and thereafter the following provisos shall be added, namely:-
Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from first day of July, 2016 and shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded:
Provided further that all notifications issued on or after first day of July, 2016 shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded.;
(7) in section 25A, in sub-section (2), for full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-
Provided that where the value declared in a goods declaration, filed under section 79 or section 131 or mentioned in the invoice retrieved from the consignment, as the case may be, is higher than the value
determined under sub-section (1), such higher value shall be the customs value.;
(8) in section 26, after sub-section (1), the following new sub-section shall be inserted, namely:-
(1A) Subject to rules, the Board or any officer authorized in this behalf may require any person to provide such information as is held by that person which is required for the purposes of End Use Verification of goods.;
(9) in section 33,-
(a) in sub-section (1), for colon, a full stop shall be substituted and thereafter the proviso shall be omitted; and
(b) after sub-section (3), the following new sub-section shall be inserted, namely:-
(4) No refund shall be allowed under this section, if the sanctioning authority is satisfied that the incidence of customs duty and other levies has been passed on to the buyer or consumer.;
(10) in section 98,-
(a) in sub-section (1), in the proviso, the following new clause (b) shall be inserted and thereafter the existing clause (b) shall be re- numbered as clause (c) , namely:-
(b) by the Chief Collector of Customs, for a period not exceeding one month in case of notified perishable goods
and a period not exceeding three months in case of non- perishable goods; and; and
(b) in sub-section (3), for the word limit, the word regulate shall be substituted;
(11) in section 155F, the brackets and figure (1) shall be omitted and after the second proviso, the following third proviso shall be inserted, namely:-
Provided also that a person aggrieved by an order of the Collector, cancelling or confirming the suspension of his unique user identifier, may, within thirty days of communication of such order, prefer an appeal to the Chief Collector who may pass an order annulling, modifying or confirming the order passed by the Collector.;
(12) in section 156,-
(a) in the TABLE, after clause 7, in the first column and entries relating thereto in the second and third columns, the following new clause and entries relating thereto shall be inserted, namely:-
7A If any agency or person including port authorities managing or owning a customs port, customs airport or a land customs station or a container freight station, fails to
Such agency or person or port authority shall be liable to a penalty not
exceeding five hundred thousand
14A; and
entertain a delay and detention certificate issued by the officer of Customs,
Rupees.
(b) after omitted sub-section (3), the following new sub-section shall be inserted, namely:-
(4) Notwithstanding anything contained in this Act, the Board may, by notification in the official Gazette, regulate the imposition, including the time and manner, of any penalty specified in sub-section (1).;
(13) in section 193, in sub-section (1), for the word and, a comma shall be substituted and after the figure 179, the expression and 195, shall be inserted;
(14) in section 194A, in sub-section (1), for clause (d), the following shall be substituted, namely:-
(d) an order passed under section 195 by the Board or an officer of Customs not below the rank of an Additional Collector;;
(15) in section 195, in sub-section (1),-
(a) after the word Customs, the expression or the Collector of Customs (Adjudication) shall be inserted;
(b) the words and may pass such order as it or he may think fit, shall be omitted;
(c) for the colon, a full stop shall be substituted and thereafter the following new sub-section (1A) shall be inserted, namely:-
(1A) Where it is deemed necessary to pass fresh orders, in respect of proceedings referred to in sub-section (1), the Board or Collector of Customs or Collector of Customs (Adjudication) may pass the order itself or himself, as the case may be, or assign the case to an officer of equal or higher rank, who may have passed the earlier order, for passing such order as he may think fit:;
(16) after section 219, the following new section shall be inserted, namely:- 219A. Power to enter into mutual legal assistance
agreements on customs matters:- (1) The Board may, of its own motion or upon request from an international organization, a foreign customs administration, or any other foreign competent authority, enter into memorandum of understanding pertaining to mutual legal assistance in customs matters, or in pursuance of any bilateral or a multilateral agreement, undertake activities, which, inter alia, include:
(a) coordinated border management;
(b) information and data sharing;
(c) bilateral and multilateral international special operations, including, by the method of controlled delivery;
(d) capacity building and technical assistance initiatives; and
(e) any other matter to which both or all parties agree.
(1) Notwithstanding anything contained in any other law, for the time being in force, the Board may, on behalf of the Federal Government, request an international organization, a foreign customs administration, or any other foreign competent authority for legal assistance on any matter or offence under this Act, or upon request received therefrom; and
(2) The Board may, by notification in the official Gazette, prescribe the rules for any of the matters enumerated in this section.;
(17) after section 221, following new section shall be inserted, namely:-
221-A. Validation.- All notifications and orders issued and notified in exercise of the powers conferred upon the Federal Government, before the commencement of Finance Act, 2017, shall be deemed to have been validly issued and notified in exercise of those powers, notwithstanding anything contained in any judgment of the High Court or Supreme Court.;
(18) the First Schedule to the Customs Act, 1969 (IV of 1969), shall be substituted in the manner provided in the First Schedule to this Act; and
(19) the Fifth Schedule to the Customs Act, 1969 (IV of 1969), shall be substituted in the manner provided in the Second Schedule to this Act.
3. Amendments of the Sales Tax Act, 1990. ─. In the Sales Tax Act, 1990, the following further amendments shall be made, namely:-
(g) in section 2, after clause (43), a new clause shall be inserted, namely: (43A) Tier-1 retailers means,
a retailer operating as a unit of a national or international chain of stores;
a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds rupees six hundred thousand; and
a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers;;
(h) in section 3,
(2)
in
sub-section (1), in clause (b),
after the word
(3) in sub-section (1A), for the expression and (6), the expression ,
(6) and section 4 shall be substituted;
(4) in sub-section (2), in clause (b), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(5) in sub-section (3A), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(6) in sub-section (5), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted; and
(7) after sub-section (9), a new sub-section (9A) shall be inserted, namely:
(9A) Notwithstanding anything contained in this Act, Tier-1 retailers shall pay sales tax at the rate specified in sub-section (1) and shall observe all the applicable provisions of the Act and rules made thereunder, including the requirement to file monthly sales tax returns in the manner prescribed in Chapter II of the Sales Tax Rules, 2006:
Provided that the retailers making supplies of finished goods of the five sectors specified in Notification No. S.R.O. 1125(I)/2011, dated the 31st December, 2011 shall pay sales tax in respect of such supplies at the rates prescribed in the said Notification:
Provided further that Tier-1 retailers, in lieu of net tax payable at the applicable rate shall, shall have an option to pay sales tax under the turnover regime at the rate of two percent of their total turnover, including turnover relating to
exempt supplies, without adjustment of any input tax whatsoever:
Provided also that retailers opting to pay sales tax on the basis of total turnover shall file an option to the Chief Commissioner of Regional Tax Office or Large Taxpayers Unit having jurisdiction by fifteenth day of July opting to pay sales tax on the basis of turnover and such an option shall remain in force for the whole financial year.;
(i) in section 4,
12. in the preamble, after the figure 3 appearing for the first time, the expression except those of sub-section (1A) shall be inserted; and
13. in clause (c), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(j) in section 7,
(a) in sub-section (3), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted; and
(b) in sub-section (4), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(k) in section 7A,
(f) in sub-section (1), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted; and
(g) in sub-section (2), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(l) in section 8, in sub-section (1), in clause (b), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(m) in section 13,
(a) in sub-section (2), in clause (a), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted; and
(b) in sub-section (6), for the words Federal Government, the word Board shall be substituted; and
(c) in sub-section (7), for the full stop at the end, a colon shall be substituted and thereafter the following provisos shall be added, namely:
Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from 1st July, 2016 and shall continue to be in force till 30th June, 2018, if not earlier rescinded:
Provided further that all notifications issued on or after 1st July, 2016 shall continue to be in force till 30th June, 2018, if not earlier rescinded.;
(n) in section 30,
in sub-section (1),
after clause (e), a new clause (ea) shall be inserted, namely:
(ea) District Taxation Officer; and
after clause (f), a new clause (fa) shall be inserted, namely: (fa) Assistant Director Audit;
after sub-section (2), the following sub-sections shall be inserted, namely:
(2A) The Chief Commissioners Inland Revenue shall perform their functions in respect of such persons or classes of persons of such areas as the Board may direct.
(2B) The Commissioners Inland Revenue shall perform their functions in respect of such persons or classes of persons of such areas as the Chief Commissioner to whom they are sub-ordinate may direct.;
in sub-section (3),
after the words Deputy Commissioner Inland Revenue, the comma and words , District Taxation Officer shall be inserted; and
after the words Assistant Commissioner Inland Revenue, the comma and words , Assistant Director Audit shall be inserted; and
in sub-section (4),
after the words Deputy Commissioner Inland Revenue, the comma and words , District Taxation Officer shall be inserted; and
after the words Assistant Commissioner Inland Revenue, the comma and words , Assistant Director Audit shall be inserted;
(o) in section 33, in the Table, after serial number 22 and entries relating thereto, a new serial number 23 and entries relating thereto in columns (1), (2) and (3) shall be added, namely:-
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23. |
Any person who manufactures, possesses, transports, distributes, stores or sells cigarette packs without, or with counterfeited, tax stamps, banderoles, stickers, labels or barcodes. |
(i) Such cigarette stock shall be liable to outright confiscation and destruction. Any person committing the offence shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is |
40C(2) |
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higher. He shall, further
be liable, upon conviction by a Special Judge, to imprisonment for
a term which
may extend to five years,
or with additional fine which
may extend to an
amount equal to the loss of tax involved, or with
both. (g)
In case of
transport of cigarettes without, or with counterfeited, tax stamps,
banderoles, stickers, labels or barcodes, permanent seizure
of the vehicle used
for transportation of non-
conforming or counterfeit cigarette packs; and (h) In case of repeat sale of cigarettes without |
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or with counterfeited, tax stamps, banderoles, stickers, labels or barcodes, the premises used for such sale be sealed for a period not exceeding 15 days. |
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(p) in section 48, in sub-section (1), in clause (f), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:
Provided that the Commissioner shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that twenty-five per cent of the amount of tax due has been paid by the taxpayer.;
(q) in section 56,
in sub-section (1), in clause (b), the word or shall be omitted and in clause (c), for the full stop, a semi colon and word ; or shall be substituted and thereafter, the following shall be added, namely: (d) sent electronically through email or to the e-folder
maintained for the purpose of e-filing of Sales Tax-cum-
Federal Excise returns by the Limited Companies, both public and private.; and
In sub-section (2), in clause (b), the word or shall be omitted and in clause (c), for the full stop, a semi colon and word ; or shall be substituted and thereafter, the following shall be added, namely: (d) sent electronically through email or to the e-folder
maintained for the purpose of e-filing of Sales Tax-cum- Federal Excise returns by the Limited Companies, both public and private.;
(r) in section 60, for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(s) in section 65, for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(t) in section 71, in sub-section (1), for the words Federal Government, the words Board with the approval of the Minister Incharge of the Federal Government shall be substituted;
(u) after section 74, a new section 74A shall be inserted, namely:
74A. Validation. All notifications and orders issued and notified in exercise of the powers conferred upon the Federal Government, before the commencement of Finance Act, 2017, shall be deemed to have been validly issued and notified in exercise of those
powers, notwithstanding anything contained in any judgment of the High Court or Supreme Court.;
(v) in the Third Schedule, in the Table,
(i) against serial number 2, in column (3), for the figure 21.05, the figure 2105.0000 shall be substituted; and
(j) serial number 32 and entries relating thereto in columns (2) and (3) shall be omitted;
(w) in the Fifth Schedule, in serial number 12, in sub-serial number (xvii), for the words preparations for infant use put up for retail sale, the words Preparations suitable for infants or young children, put up for retail sale shall be substituted;
(x) in the Sixth Schedule,
(a) in Table 1,
against serial number 1,
for the figure 0101.3100 the figure 0101.3000 shall be substituted;
the figure 0102.1010 shall be omitted;
the figure 0105.1900 shall be omitted;
against serial number 15,
the figure 0803.0000 shall be omitted;
for the figure 0805.2010, the figure 0805.2910 shall be substituted; and
for the figure 0805.2090, the figures 0805.2100, 0805.2200 and 0805.2990 shall be substituted;
against serial number 17, for the figure 0910.1000, the figure 09.10 shall be substituted;
in serial number 19, the figure 1102.3000 shall be omitted;
in serial number 20, the figure 1209.1010 shall be omitted;
against serial number 23, for the figure 1212.9990, the figure 1212.9300 shall be substituted;
in serial number 26, the figure 2009.8000 shall be omitted;
in serial number 31, the figures 8523.5100 and 8523.5200 shall be omitted;
against serial number 33, for the figure 4907.0000, the figure 49.07 shall be substituted;
against serial number 38, for the figure 7108.2000, the figure 7108.1390 shall be substituted;
against serial number 81, for the figure 1207.2000, the figure 1207.1000 shall be substituted;
in serial number 83, the figure 1604.3000 shall be omitted;
in serial number 84, in column (2), for the words preparations for infant use put up for retail sale, the words Preparations suitable for infants or young children, put up for retail sale shall be substituted;
against serial number 91, in column (3), for the figure 8539.3910, the figure 8539.3110 shall be substituted;
in serial number 97, in column (2), for the words pens and ball pens, the words pens, ball pens, markers and porous tipped pens shall be substituted;
in serial number 100A, the following amendments shall be made, namely:
after the words materials and equipment, a bracket shall be inserted and therein the words and commas plant, machinery, equipment, appliances and accessories shall be inserted; and
for the word Gawadar wherever appearing the word Gwadar shall be substituted;
after serial number 100B, a new serial number 100C shall be inserted, namely:
100C. Vehicles imported by China Overseas Ports Holding Company Limited (COPHCL) and its operating companies namely (i) China Overseas Ports Holding Company Pakistan (Private) Limited (ii) Gwadar International Terminal Limited, (iii) Gwadar Marine Services Limited and
(iv) Gwadar Free Zone Company Limited, for a period
of twenty three years for construction, development and operations of
limitations, conditions prescribed under PCT heading 9917 (3);
in serial number 106, in column (3), the figure 0206.2000 shall be omitted;
in serial number 108, against sub-serial (h), in column (3), for the figure 3824.9099, the figure 3824.8400 shall be substituted;
against serial number 110, in sub serial (c), in column (3), for the figure 8543.7090, the figures and word 8539.5010 and 8539.5020 shall be substituted;
against serial number 113, in sub-serial (2), in column (3), for the figure 8424.8100, the figure 8424.4100 shall be substituted;
against serial number 114, in sub-serial (2), in column (3), for the figure 9406.0010, the figures and word 9406.1010 and 9406.9010 shall be substituted;
in serial number 130, in column (3), the following shall be substituted; namely:
Sodium Iron (Na Fe EDTA), and other premixes of Vitamins, Minerals and Micro-nutrients (food grade) and subject to conditions imposed for importation under the Customs Act, 1969;
against serial number 133,
A. in column (2),
1. the words ingredients for pesticides shall be omitted;
2. the words Cadusafos Technical Material shall be omitted;
3. the words ingredients for pesticides shall be omitted;
4. the words ingredients for pesticides shall be omitted;
5. the words other ingredients for pesticides shall be omitted;
6. the words Tiethanolamine and its salts shall be omitted;
7. the words ingredients for pesticides shall be omitted; and
B. in column (3),
1. the figure 2903.3040 shall be omitted;
2. the figure 2903.6900 shall be omitted;
3. the figure 2918.9010 shall be omitted;
4. the figure 2919.0010 shall be omitted;
5. the figure 2919.0090 shall be omitted;
6. the figure 2922.1300 shall be omitted;
7. the figure 2924.2930 shall be omitted;
8. in column (3), for the figure 2939.9910, the figure 2939.8010 shall be substituted;
9. in column (3), for the figure 2939.9910, the figure 2939.8010 shall be substituted;
10. in column (3), for the figure 3824.9099, the figure 3824.9999 shall be substituted;
after serial number 133 and entries relating thereto in columns (1), (2) and (3), the following new serial numbers and entries relating thereto shall be inserted, namely:
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134. |
Goods received as gift or donation from a foreign government or organization by the Federal or Provincial Governments or any public sector organization subject to recommendations of the Cabinet Division and concurrence by the Federal Board of Revenue. |
9908 |
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135. |
Sunflower and canola hybrid seeds meant for sowing |
Respective heading |
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136. |
Combined harvesters upto five years old |
8433.5100 |
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137. |
Single cylinder agriculture diesel engines (compression-ignition internal combustion piston engines) of 3 to 36 HP, and CKD kits thereof |
8408.9000.; and |
(b) in Table-3,
B. in the preamble, in sub-paragraph (ii), after the figure 14, the figure and word 14A and 15 shall be inserted; and
C. in the Annexure,
1. In serial number 2, in column (3), for the figure 3824.9099, the figure 3824.9999 shall be substituted; and
2. for existing serial numbers 14 and 15 and entries relating thereto, the following new serial numbers 14, 14A, 15 and 15A and entries relating thereto shall be substituted; namely:
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14. |
Following items for use with solar energy:- Solar Power Systems. |
8501.3110 8501.3210 |
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(1) Offgrid/On-grid solar power |
8541.4000 |
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system (with or without provision |
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for USB/charging port) |
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comprising of : |
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(i) PV Module. |
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(ii) Charge controller. |
9032.8990 |
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(iii) Batteries for specific |
8507.2090 |
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utilization with the system (not |
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exceeding 50 Ah in case of portable system). 2.
Essential connecting
wires (with or without switches). 3.
Inverters (off-grid/ on-grid/ hybrid with provision for direct connection/ input renewable energy
source and with Maximum Power
Point Tracking (MPPT). 4.
Bulb holder (2) Water purification plants operating on solar energy. |
8507.3000 8507.6000 8544.4990 8504.4090 8536.6100 8421.2100 |
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14A. |
Following systems and items for dedicated use with renewable source of energy like solar,
wind, geothermal etc. 1. (a) Solar
Parabolic Trough Power
Plants. (b) Parts for Solar Parabolic Power
Plants. (i) Parabolic Trough collectors |
8502.3900 8503.0010 |
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modules. C.
Absorbers/Receivers tubes. D.
Steam turbine
of an output
exceeding 40MW. E.
Steam turbine
of an output
not exceeding 40MW. F.
Sun tracking control system. G. Control panel with other accessories. |
8503.0090 8406.8100 8406.8200 8543.7090 8537.1090 |
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2. (a) Solar
Dish (b) Parts for Solar Dish (i). Solar concentrating dish.
(ii). (iii). Sun tracking control system. (iv).
Control panel with accessories. (v). Stirling Engine Generator |
8412.8090 8543.7000 8543.7000 8543.7090 8406.8200 8501.6100 |
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3. (a) Solar Air Conditioning Plant (b) Parts for Solar Air Conditioning Plant |
8415.1090 |
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(i).
Absorption chillers. (ii).
Cooling towers.
(iii). Pumps. (iv). Air handling units. (v). Fan coils
units. (vi).
Charging & testing equipment. |
8418.6990 8419.8910 8413.3090 8415.8200 8415.9099 9031.8000 |
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4. (a) Solar Desalination System (b) Parts for Solar Desalination System (i). Solar photo
voltaic panels. (ii). Solar
water pumps. (iii). Deep Cycle Solar Storage batteries. (iv). Charge controllers. (v). Inverters (off grid/on grid/ hybrid) with provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT) |
8421.2100 8541.4000 8413.3090 8507.2090 9032.8990 8504.4090 |
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5. Solar Thermal Power Plants |
8502.3900 |
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with accessories. |
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6. (a) Solar
Water Heaters
with accessories. (a) Parts for Solar
Water Heaters
(i).
Insulated tank (ii). Vacuum tubes
(Glass) (iii). Mounting stand (iv). Copper
and Aluminum tubes (b)
Accessories: (i)
Electronic controller (ii)
Assistant/ feeding
tank (iii)
Circulation Pump (iv)
Electric heater/ immersion rod (one
piece with one solar water heater) (v)
Solenoid valve
(one piece with one solar water heater) (vi) Selective coating for absorber plates |
8419.1900 7309.0000 7310.0000 7020.0090 Respective headings Respective heading |
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7. (a) PV Modules. (b) Parts for PV Modules |
8541.4000 |
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(i). Solar cells. (ii). Tempered Glass. (iii). Aluminum frames. (iv). O-Ring. (v). Flux. (vi). Adhesive labels. (vii). Junction box & cover.
(viii).Sheet mixture of paper and plastic (ix). Ribbon for PV Modules (made of silver &Lead). (x). Bypass diodes. (xi). EVA (Ethyl Vinyl Acetate) Sheet (Chemical). |
8541.4000 7007.2900 7610.9000 4016.9990 3810.1000 3919.9090 8538.9090 3920.9900 Respective headings 8541.1000 3920.9900 |
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8. Solar Cell
Manufacturing Equipment. (i). Crystal (Grower) Puller (if machine). (ii). Diffusion furnace. (iii). Oven. (iv). Wafering machine. (v). Cutting and shaping machines for silicon ingot. |
8479.8990 8514.3000 8514.3000 8486.1000 8461.9000 |
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(vi). Solar
grade polysilicon material. (vii). Phosphene Gas. (viii).Aluminum and silver paste. |
3824.9999 2853.9000 Respective headings |
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9. Pyranometers and accessories for solar data collection. |
9030.8900 |
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10. Solar chargers for charging electronic devices. |
8504.4020 |
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11. Remote control for solar charge controller. |
8543.7010 |
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12. Wind
Turbines. 2.
Wind
Turbines for grid connected solution above 200 KW (complete system). 3.
Wind Turbines upto 200 KW for off-grid solutions
comprising of: (i). Turbine with Generator/ Alternator. (ii). Nacelle with rotor with or without tail. |
8412.8090 8412.8090 Respective headings |
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(iii). Blades. (iv). Pole/
Tower. (v). Inverter for use with Wind Turbine. (vi). Deep Cycle Cell/ |
8507.2090 |
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13. Wind water pump |
8413.8100 |
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14. Geothermal energy equipment. (i). Geothermal heat pumps. (ii). Geothermal Reversible Chillers. (iii). Air handlers for indoor quality control equipment. (iv). Hydronic heat pumps. (v). Slim Jim heat
exchangers. (vi). HDPE fusion tools. (vii). Geothermal energy installation tools and equipment. (viii).Dehumidification equipment. (ix). Thermostats and intellizone. |
8418.6100 8418.6990 8415.8300 8418.6100 8419.5000 8515.8000 8419.8990 8479.6000 9032.1090 |
|
|
|
15. Any other item approved by the Alternative Energy Development Board (AEDB) and concurred to by the FBR. |
Respective headings |
|
|
15. |
Following items for promotion of renewable energy technologies or for conservation of energy:- 1)
SMD/LED/LVD lights with or without ballast, fittings and fixtures. 2)
3)
Tubular day lighting device. 4)
Wind turbines including alternators and mast. 5)
Solar torches. 6)
Lanterns and related instruments. 7)
LVD induction lamps. (viii)LED bulb/tube lights. (ix) PV module, with or without, |
9405.1090 8539.3290 8543.7090 9405.4090 8539.3290 8543.7090 9405.5010 8502.3100 8513.1040 8513.1090 8539.3290 8543.7090 8541.4000 |
|
|
|
the related
components including invertors (off-
grid/on grid/
hybrid) with provision for direct connection/input from
renewable energy source
and with Maximum Power
Point Tracking (MPPT), charge
controllers and solar batteries. 1)
Light emitting diodes
(light emitting in different colors). 2)
Water pumps operating on solar energy
along with solar pump controllers 3)
Energy saver
lamps of varying voltages 4)
Energy Saving Tube Lights. 5)
Sun Tracking Control
System 6) Invertors (off-grid/on grid/hybrid) with provision for direct connection/input from |
8504.4090 9032.8990 8507.0000 8541.5000 8413.7010 8413.7090 8504.4090 8539.3110 8539.3210 |
|
|
|
renewable energy source and with Maximum
Power Point Tracking (MPPT). (xvi) Charge controller/ current controller. Provided that exemption under this serial shall be available with effect from 01.07.2016. |
8539.3120 8539.3220 8543. 7090 8504.4090 |
|
|
9032.8990 |
|||
|
15A |
Parts and components for |
9405.1090 |
If imported by |
|
manufacturing LED lights: |
LED light |
||
|
(i) Aluminum housing/ shell |
manufacturers |
||
|
for LED (LED light fixture) |
registered |
||
|
(ii) Metal clad printed circuit |
|
under the |
|
|
boards (MCPCB) for LED |
|
Sales Tax |
|
|
(iii) Constant current power |
8543.0000 |
Act, 1990 |
|
|
supply for of LED lights (1-300W) |
|
subject to |
|
|
(iv) Lenses for LED lights |
|
annual quota |
|
|
8504.4090 |
determination |
||
|
|
by the Input |
||
|
|
Output Co- |
||
|
9001.9000 |
efficient |
||
|
Organization |
|
|
|
|
(IOCO); |
(y) in the Eight Schedule, in Table-1,
(i) in serial number 26, in sub-serial (iv), in column (3), for the figure 8432.3090, the figure 8432.3900 shall be substituted;
(ii) in serial number 27, in column (3),
(iii) in sub-serial (iv), for the figure 8432.4000, the figure 8432.4100 shall be substituted;
(iv) in sub-serial (vi), for the figure 8432.3010, the figure 8432.3100 shall be substituted; and
(v) in sub-serial (vii), for the figure 8432.3090, the figure 8432.3900 shall be substituted;
(iii) in serial number 34, in column (5), for the figure 2017, the figure 2018 shall be substituted; and
(iv) after serial number 34 and the entries relating thereto, the following new serial numbers and entries relating thereto in columns (2), (3),
(4) and (5) shall be inserted, namely:
|
35. |
DAP |
Respective heading |
Rs. 100 per 50 kg bag |
Nil |
|
36. |
NP (22-20) |
Respective heading |
Rs. 168 per 50 kg bag |
If manufactured from gas other than imported LNG |
|
37. |
NP (18-18) |
Respective heading |
Rs. 165 per 50 kg bag |
If manufactured from gas other than imported LNG |
|
38. |
NPK-I |
Respective heading |
Rs. 251 per 50 kg bag |
If manufactured from gas other than imported LNG |
|
39. |
NPK-II |
Respective heading |
Rs. 222 per 50 kg bag |
If manufactured from gas other than imported LNG |
|
40. |
NPK-III |
Respective heading |
Rs. 341 per 50 kg bag |
If manufactured from gas other than imported LNG |
|
41. |
SSP |
Respective heading |
Rs. 31 per 50 kg bag |
If manufactured from gas other than imported LNG |
|
42. |
CAN |
Respective heading |
Rs. 98 per 50 kg bag |
If manufactured from gas other than imported |
|
|
|
|
|
LNG |
|
43. |
Natural gas |
Respective heading |
10% |
If supplied to fertilizer plants for manufacturing of urea |
|
44. |
Phosphoric acid |
2809.2010 |
5% |
If imported by fertilizer company for manufacturing of DAP |
|
45. |
Following machinery for poultry sector : |
|
|
Import and supply |
|
|
(i) Machinery for preparing feeding stuff |
8436.1000 |
7% |
|
|
|
(ii) Poultry incubators and brooders |
8436.2100 and 8436.2900 |
7% |
|
|
|
(iii) Insulated sandwich panels |
9406.0090 |
7% |
|
|
|
(iv) Poultry |
9406.0020 |
7% |
|
|
|
sheds |
|
|
|
|
|
(v) Evaporative air cooling system |
8479.6000 |
7% |
|
|
|
(vi) Evaporative cooling pad |
8479.9010 |
7% |
|
|
46. |
Multimedia projectors |
8528.6210 |
10% |
If imported by educational institution |
|
47. |
Locally produced coal |
27.01 |
Rs. 425 per metric
tonne or 17% ad valorem, whichever is higher |
Nil; and |
(z) in the Ninth Schedule, in the Table, against serial number 2,
in column (3),
for the figure 300, the figure 650 shall be substituted; and
for the figure 1000, the figure 650 shall be substituted; and
in column (4),
for the figure 300, the figure 650 shall be substituted; and
for the figure 1000, the figure 650 shall be substituted.
4. Amendment of Ordinance, XLIX of 2001.─ In the Income Tax Ordinance, 2001 (XLIX of 2001), the following further amendments shall be made, namely:-
(a) in section 2,─
in clause (22A), after the word consumer, occurring for the third time, the words excluding durable goods shall be inserted;
in clause (38A), after the word officer, occurring for the third time, the comma and the words , District Taxation Officer, Assistant Director Audit, shall be inserted;
after clause (62), the following new clause shall be inserted, namely:
(62A) startup means a business of resident individual, AOP or a company incorporated or registered in Pakistan on or after first day of July, 2012 and the person is engaged in or intends to offer technology driven products or services to any sector of the economy provided that the person is registered with and duly certified by the Pakistan Software Export Board (PESB) and having turnover of less than one hundred million in each of the last five tax years.;
(b) in section 4B, in sub-section (1), for the expression and 2016 the expression to 2017 shall be substituted;
(c) for section 5A, the following section shall be substituted, namely:-
5A. Tax on undistributed profits.- (1) Subject to this Ordinance, for tax year 2017 and onwards, a tax shall be imposed at the rate of ten percent, on every public company other than a scheduled bank or a modaraba, that derives profit for a tax year but does not distribute at least forty percent of its after tax profits within six months of the end of the tax year through cash or bonus shares:
Provided that for tax year 2017, bonus shares or cash dividends may be distributed before the due date mentioned in sub-section (2) of section 118, for filing of a return.
1. The provisions of sub-section (1) shall not apply to-
a company qualifying for exemption under clause (132) of Part I of the Second Schedule; and
a company in which not less than fifty percent shares are held by the Government."
(d) in section 7C, for sub-section (4), the following shall be substituted, namely:-
(4) This section shall apply to projects undertaken for development and sale of residential, commercial or other plots initiated and approved. ─
during tax year 2017 only;
for which payment under rule 13S of the Income Tax Rules, 2002 has been made by the developer during tax year 2017; and
the Chief Commissioner has issued online schedule of advance tax installments to be paid by the developer in accordance with rule 13ZB of the Income Tax Rules, 2002.;
(e) in section 7D, for sub-section (4), the following shall be substituted, namely:-
(4) This section shall apply to projects undertaken for development and sale of residential, commercial or other plots initiated and approved. ─
during tax year 2017 only;
for which payment under rule 13S of the Income Tax Rules, 2002 has been made by the developer during tax year 2017; and
the Chief Commissioner has issued online schedule of advance tax installments to be paid by the developer in accordance with rule 13U of the Income Tax Rules, 2002.;
(f) in section 8, in sub-section (1),-
for the expression , 7B, 7C and 7D the expression and 7B shall be substituted; and
in clause (d), for the expression, 7B, 7C and 7D the expression and 7B shall be substituted;
(g) in section 13, in sub-section (7), in the second proviso, for the words five hundred thousand the words one million shall be substituted;
(h) in section 21, in clause (o), for the word five the word ten shall be substituted;
(i) in section 22, in sub-section (15), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:
Provided that where a depreciable asset is jointly owned by a taxpayer and an Islamic financial institution licensed by the State Bank of Pakistan or Securities and Exchange Commission of Pakistan, as the case may be, pursuant to an arrangement of Musharika financing or diminishing Musharika financing, the depreciable asset shall be treated to be wholly owned by the taxpayer.;
(j) in section 53,
8. in sub-section (2) after the word "The", occurring for the first time, the expression "Board with the approval of Minister Incharge of the" shall be inserted;
9. in sub-section (4), for the full stop, a colon shall be substituted and thereafter the following provisos shall be added, namely:-
"Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from
the first day of July, 2016 and shall continue to be in force till the thirtieth day of June, 2018, if not earlier rescinded:
Provided further that all notifications issued on the first day of July, 2016 shall continue to be in force till the thirtieth day of June, 2018, if not earlier rescinded.";
(k) sections 64A and 64AB shall be re-numbered as 60C and 60D respectively;
(l) in section 60D, re-numbered as aforesaid, in sub-section (1), after the word one the words and a half shall be inserted;
(m) in section 62A, in sub-section (2), in component C of the formula, in clause (c), after the word hundred the words and fifty shall be inserted;
(n) section 65A shall be omitted;
(o) in section 65C, in sub-section (1), for the words and full stop tax year. the words and colon three tax years: shall be substituted and thereafter the following proviso shall be added, namely:─
Provided that the tax credit for the last two years shall be ten per cent of the tax payable.;
(p) in section 94, sub-section (3) shall be omitted.
(q) in section 100, in sub-section (2) for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added namely:─
"Provided that the for tax year 2017 and onward the provisions of this sub-section shall not apply on profit and gains derived from sui gas field.";
(r) in section100C, ─
in sub-section (1), after clause (c), the following new clause shall be added, namely:-
(d) the administrative and management expenditure does not exceed 15% of the total receipts.; and
after section (1), the following new sections shall be inserted, namely:-
(1A) Notwithstanding anything contained in sub-section (1), surplus funds of non-profit organization shall be taxed at a rate of ten percent.
(1B) For the purpose of sub-section (1A), surplus funds mean funds or monies:
not spent on charitable and welfare activities during the tax year;
received during the tax year as donations, voluntary contributions, subscriptions and other incomes;
or more than twenty five percent of the total receipts of the non-profit organization received during the tax year;
are not part of restricted funds:
Explanation: For the purpose of this sub- section, restricted funds mean any fund received by the organization but could not be spent and treated as revenue during the year due to any obligation placed by the donor.
(s) in section 113, in sub-section (1), in clause (e), for the words "one per cent" the expression "the percentage as specified in column (3) of the table in Division IX of Part-I of the First Schedule" shall be inserted;
(t) in section 114, in sub-section (6), in clause (c), the expression 122C, shall be omitted;
(u) in section 115, in sub-section (3), after the figures (iii) the expression , (iv), (v) and (vi) shall be inserted;
(v) in section 116,
sub-section (2A) shall be omitted; and
in sub-section (3), for the expression an assessment, for the tax year to which it relates, is made under sub-section (1) or sub- section (4) of section 122 the expression the receipt of notice under sub-section (9) of section 122, for the tax year to which it relates shall be substituted;
(w) in section 119, in sub-section (4), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:
Provided that where the Commissioner has not granted extension for furnishing return under sub-section (3) or sub-section (4), the Chief Commissioner may on an application made by the taxpayer for extension or further extension, as the case may be, grant extension or further extension for a period not exceeding fifteen days unless there are exceptional circumstances justifying a longer extension of time.;
(x) in section 121, in sub-section (1), after clause (aa), the following new clause shall be inserted, namely:
(ab) furnish return of income in response to notice under sub- section (3) or sub-section (4) of section 114; or;
(y) in section 122, in sub-section (1), the expression or issued under section 122C, shall be omitted;
(z) section 122C shall be omitted;
(aa) in section 127, in sub-section (1), the expression except an assessment order under section 122C, shall be omitted;
(bb) in section 130, in sub-section (3),
in clause (a), after the semicolon, the word "or" shall be inserted;
in clause (b), for the expression "; or" a full stop shall be substituted; and
clause (c) shall be omitted;
(cc) in section 137, in sub-section (2), for the colon, occurring first, a full stop shall be substituted and thereafter both the provisos shall be omitted;
(dd) in section 146,
in the marginal note, after the word
in sub-section (1), after the word
(ee) in section 147, in sub-sections (2) and (4B), for the words five hundred thousand, the words one million shall be substituted;
(ff) in section 148, in sub-section (7),
clause (b) shall be omitted;
in clause (c), for the full stop at the end, a semicolon shall be substituted;
(gg) in section 152,
in sub-section (1AAA), for the expression Division IIIA, the expression Division II shall be substituted;
in sub-section (1B), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:
Provided that the provisions of this sub-section shall not apply in respect of a non-resident person unless he opts for the final tax regime.;
in sub-section (2A), clauses (i), (ii) and (iii) shall be re-numbered as (a), (b) and (c) respectively; and
for sub-section (4A), the following shall be substituted, namely:-
"(4A) The Commissioner may, on application made by the recipient of payment referred to in sub-section (1A) having permanent establishment in Pakistan, or by a recipient of payment referred to in sub-section (2A), as the case may be, and after making such inquiry as the Commissioner thinks fit, allow by order in writing, in cases where the tax deductable under sub-section (1) or sub-section (2A) is adjustable, any person to make the payment without deduction of tax or deduction of tax at a reduced rate.";.
(hh) in section 153, in sub-section (1), in clause (c), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:
Provided that where the recipient of the payment under clause (b) receives the payment through an agent or any other third person and the agent or, as the case may be, the third person retains service charges or fee, by whatever name called, from the payment remitted to the recipient, the agent or the third person shall be treated to have been paid the service charges or fee by the recipient and the recipient shall collect tax along with the payment received.;
(ii) in section 165, after sub-section (2), the following new sub-section shall be inserted, namely:
(2A) Any person who, having furnished statement under sub-section (1) or sub-section (2), discovers any omission or wrong
statement therein, may file a revised statement within sixty days of filing of statement under sub-section (1) or sub-section (2), as the case may be.;
(jj) in section 165B,
in sub-section (1), after the word "non-resident" the words "or any other reportable" shall be inserted;
after sub-section (2), the following new sub-section shall be added, namely:
"(3) for the purpose of this section, the terms "reportable person" and "financial institution" shall have the meaning as provided in Chapter XIIA of the Income Tax Rules, 2002
(kk) in section 176, in sub-section (1), in clause (c), after the word accountants, the words , or a firm of cost and management accountants as defined under the Cost and Management Accountants Act, 1966 (XIV of 1966) shall be inserted;
(ll) in section 182, in the table,
in column (1) against serial number (7) in column (4), after the figures "174" a comma and figure ", 108" shall be added;
in column (1) against serial number (9) in column (2) after the figure "176" the word and figure "or 108" shall be added; and
after serial number (16) the following new serial number and entries relating thereto in columns (2), (3) and (4) shall be added, namely:
|
17. |
Any reporting financial institution or reporting entity
who fails to furnish information or country-by-country report to the Board as required under section 107, 108 or 165B within the due date. |
Such reporting financial institution or reporting entity shall pay a penalty of two thousand rupees for each day of default subject to a minimum penalty of twenty five thousand rupees. |
107, 108 and 165B |
|
18. |
Any person who fails to keep and maintain document and information required under section 108 or Income Tax Rules, 2002 |
1% of the value of transactions, the record of which is required to be maintained under section 108 and Income Tax Rules, 2002 |
108. |
(mm) in section 191, in sub-section (1),
in clause (a), after the expression (3), the expression and sub- section (4) shall be inserted; and
in clause (c), after the word Chapter, the expression or Chapter XII shall be inserted;
(nn) in section 205, in sub-section (1B), 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 person having a special tax year, the default surcharge shall be calculated on and from the first day of the fourth quarter of the special tax year till the date on which assessment is made or the last day of special tax year, whichever is earlier.;
(oo) in section 206A, in sub-section (3), for the colon at the end, a full stop shall be substituted and the proviso thereafter shall be omitted;
(pp) in section 207,
in sub-section (1), after clause (i), the following new clauses shall be inserted, namely:
(ia) District Taxation Officer; (ib) Assistant Director Audit;;
in sub-section (3A), for the word Officer the word Officers shall be substituted and thereafter the expression , District Taxation Officer, Assistant Director Audit shall be inserted;
in sub-sections (4) and (4A), after the word Officers, occurring for the second time, the expression , District Taxation Officer, Assistant Director Audit shall be inserted;
(qq) in section 208, in sub-section (1), after the word Officers, occurring for the second time, the expression , District Taxation Officer, Assistant Director Audit shall be inserted;
(rr) in section 216:
in sub-section (3), after clause (k), the following new clause shall be inserted, namely:
(ka) Employees Old Age Benefit Institution in respect of information regarding salaries in statements furnished under section 165;; and
in sub-section (5), after the word "of", the words "Minister Incharge of" shall be inserted;
(ss) in section 227A, in sub-section (1),
after the word cases, occurring for first time, the figure "(i)" shall be inserted; and
after the word "cases", occurring for the second time, the expression "and (ii) for other meritorious services" shall be inserted;
(tt) in section 227B, in sub-section (3), after clause (a), the following new clause shall be inserted, namely:
(aa) the information is not supported by any evidence;;
(uu) after section 230C, the following new sections shall be inserted, namely: 230D. Directorate-General of Broadening of Tax Base.
1. The Directorate-General of Broadening of Tax Base shall consist of a Director-General and as many Directors, Additional
Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.
2. The Board may, by notification in the official Gazette, specify the functions, jurisdiction and powers of the Directorate- General of Broadening of Tax Base.
230E. Directorate-General of Transfer Pricing. (1) The Directorate-General of Transfer Pricing shall consist of a Director- General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.
5) The function of the Directorate General of Transfer Pricing shall be to conduct transfer pricing audit:
Explanation: For the removal of doubt , it is clarified that transfer pricing audit refers to the audit for determination of transfer price at arm's length in transactions between associates and is independent of audit under section 177, 214C or 214D which is audit of the income tax affairs of the taxpayer.
6) The Board may, by notification in the official Gazette, specify the criteria for selection of the taxpayer for transfer pricing audit and may further specify functions, jurisdiction and powers of the Directorate-General of Transfer Pricing.;
(vv) in section 231B, for sub-section (1A), the following shall be substituted, namely:
(1A) Every leasing company or a scheduled bank or a non- banking financial institution or an investment bank or a modaraba or a development finance institution, whether shariah compliant or under conventional mode, at the time of leasing of a motor vehicle to a non-filer, either through ijara or otherwise, shall collect advance tax at the rate of three per cent of the value of the motor vehicle.;
(ww) in section 233A, for sub section (2), the following shall be substituted, namely:
(2) The tax collected under sub-section (1) shall be final tax.;
(xx) in section 234A,
in sub-section (3), after the word section, occurring for the first time, the expression and under section 235 shall be inserted;
after sub-section (3), amended as aforesaid, the following explanation shall be added, namely:
Explanation. For removal of doubt, it is clarified that for the purposes of this section tax on income arising from consumption of gas referred to in sub-section (3) means the tax collected under sub-section (1) which is inclusive of sales tax and all incidental charges.; and
sub-section (4) shall be omitted;
(yy) in section 235,
after sub-section (2), the following new explanation shall be added, namely:
Explanation. For removal of doubt, it is clarified that for the purposes of this section electricity consumption bill referred to in sub-section (2) means electricity bill inclusive of sales tax and all incidental charges.;
in sub-section (4),
in clause (a), for the expression thirty thousand rupees per month, the expression three hundred and sixty thousand rupees per annum shall be substituted; and
clause (d) shall be re-numbered as clause (c).
(zz) in section 235A, after sub-section (1), the following new explanation shall be added, namely:
Explanation. For removal of doubt, it is clarified that for the purposes of this section electricity consumption bill referred to in sub-section (2) means electricity bill inclusive of sales tax and all incidental charges.;
(aaa) in section 236C,─
in sub-section (1), after the word registering, wherever occurring, the comma and word , recording shall be inserted;
after sub-section (1), amended as aforesaid, the following Explanation shall be added, namely:-
Explanation,For the removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.; and
in sub-section (2), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be inserted namely:─
"Provided further that immovable property referred to in sub- section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.";
(bbb) in sections 236G and 236H, in sub-section (1), after the word paint, the comma and word , batteries shall be inserted;
(ccc) in section 236K, ─
in sub-section (1), after the word registering, wherever occurring, the comma and word , recording shall be inserted; and
after sub-section (1), amended as aforesaid, the following Explanation shall be added, namely:-
Explanation,For the removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing
authority, housing society, co-operative society and registrar of properties.;
(ddd) in section 236W,
in sub-section (1), after the word registering, wherever occurring, the comma and word , recording shall be inserted; and
after sub-section (1), amended as aforesaid, the following Explanation shall be added, namely:-
Explanation,For the removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.;
(eee) after section 236W, amended as aforesaid, the following new section shall be added, namely,
236X. Advance tax on tobacco. (1) Pakistan Tobacco Board, at the time of collecting cess on tobacco, directly or indirectly, shall collect advance tax at the rate of five percent of the purchase value of tobacco from every person purchasing tobacco including manufacturers of cigarettes.
(2) Tax collected under this section shall be adjustable.;
(fff) after section 240, the following new section shall be added, namely:
"241. Validation. All notifications and orders issued and notified, in exercise of the powers conferred upon the Federal
Government, before the first day of July, 2017 shall be deemed to have been validly issued and notified in exercise of those powers, notwithstanding anything contained in any judgment of a High Court or the Supreme Court.";
(ggg) in the First Schedule,─
1. in Part I,─
in Division III,─
in clause (b), for the figure 12.5, the figure 15 shall be substituted; and
in clause (c), for the figure 10, the figure 12.5 shall be substituted;
in Division IIIA, for the TABLE, the following shall be substituted, namely:─
TABLE
S.NO Profit on
Debt Rate of tax (1) (2) (3) 1. Where profit on debt does not
exceed Rs.5,000,000 10% 2. Where profit on debt exceeds Rs.5,000,000 but does not exceed Rs.25,000,000 12.5% 3. Where profit on debt exceeds Rs.25,000,000 15%
";
for Division VII, the following shall be substituted, namely:─ Division VII
The rate of tax to be paid under section 37A shall be as follows.─
TABLE
|
S.NO. |
Period |
Tax Year 2015 |
Tax Year 2016 |
Tax Year 2017 |
Tax Year 2018 and onwards |
||
|
Filer |
Non- Filer |
Filer |
Non - Filer |
||||
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
|
1. |
Where holding period of a security is less than twelve months |
12.5% |
15% |
15% |
18% |
15% |
20% |
|
2. |
Where holding period of a security is twelve months |
10% |
12.5% |
12.5% |
16% |
||
or more but less than twenty-four months 3. Where holding period of a security is twenty-four
months or more but the
security was acquired on
or after 1st July, 2013 0% 7.5% 7.5% 11% 4. Where the security was acquired before 1st July, 2013 0% 0% 0% 0% 0% 0% 5. Future commodity contracts entered into by members of 0% 0% 5% 5% 5% 5%
";
|
|
|
|
|
|
|
|
|
In Division IX, in column (1), against serial number 4, in column (3), for the figure 1, the figure 1.25 shall be substituted;
2. in Part III,─
in Division I,─
in clause (b), for the figure 12.5, the figure 15 shall be substituted; and
in the Table for the figure 10, wherever occurring, the figure 12.5 shall be substituted;
in Division II,─
in paragraph (1), for the figure 12, the figure 13 shall be substituted;
in paragraph (4),─
in sub- paragraph (i), for the figure 6, the figure 7 shall be substituted; and
in sub- paragraph (ii), for the figure 6.5, the figure 7.75 shall be substituted;
in paragraph (5), in sub-paragraph (ii),─
in clause (a), for the figure 12 the figure 14 shall be substituted; and
in clause (b), for the figure 15 the figure 17.5 shall be substituted; and
in paragraph (6), in sub-paragraph (ii), for the figure 12, the figure 13 shall be substituted;
in Division III,─
in paragraph (1),─
in sub-paragraph (a), for the full stop at the end a colon shall be substituted and thereafter the following explanation shall be added, namely:- Explanation:- For the removal of doubt, it is clarified that cotton seed and edible oils means cotton seed oil and edible oils.;
for sub-paragraph (ab), the following shall be substituted, namely:─
(ab) in the case of supplies made by the distributer of fast moving consumer goods,─
in case of a company, 2% of the gross amount payable; and
in any other case, 2.5% of the gross amount payable.;
in paragraph (b),─
in sub-paragraph (i), for the figure 6, the figure 7 shall be substituted; and
in sub-paragraph (ii), for the figure 6.5 the figure 7.75 shall be substituted;
in paragraph (2), in sub- paragraph (ii),─
in clause (a), for the figure 12 the figure 14.5 shall be substituted; and
in clause (b), for the figure 15 the figure 17.5 shall be substituted; and
in paragraph (3),─
in sub-paragraph (ii), for the figure 10 the figure 12 shall be substituted; and
in sub-paragraph (iii), for the figure 10 the figure 12.5 shall be substituted;
in Division V, in paragraph (b), after the word rent the expression for filers and 17.5% of the gross amount of rent for non-filers shall be added;
in Division VI, in paragraph (1), for the figure 20, the figure 25 shall be substituted;
in Division VIA, for the figure 15, the figure 17.5 shall be substituted; and
in Division VIB, after the word charges, the expression for filers and six per cent for non-filers shall be inserted; and
3. in Part IV,─
in Division IV, after the word the the word gross shall be inserted;
in Division V, in the Table, in the first column, against serial number (b), in column (3), for the figure 14 the figure 12.5 shall be substituted;
in Division VII, in paragraph (1), in the Table, in column (1),─
N against serial number 1, in column (3), for the figure 10,000 the figure 7,500 shall be substituted;
O against serial number 2, in column (3), for the figure 20,000 the figure 15,000 shall be substituted; and
P against serial number 3, in column (3), for the figure 30,000, the figure 25,000 shall be substituted;
Q in Division VIII, after the word auction at the end, the expression for filers and 15% of the gross sale price of any property or goods sold by auction for non-filers shall be added;
R for Division XV, the following shall be substituted, namely:─
Advance tax on sale to retailers
The rate of collection of tax under section 236H on the gross amount of sales shall be as follows:-
|
Category of sale |
Rate of tax |
|
|
Filer |
Non-filer |
|
(1) (2) (3) Electronics 1% 1% Others 0.5%
"; and
S in Division XXI, in second proviso after the word "the" occurring for the first time, the word "Board with the approval of Minister Incharge of" shall be inserted;
T in Division XXV, in the Table, in column (1), against serial number 2, in column (2), for the expression exceeding Rs.0.2 million, expression exceeding Rs. 0.3 million in aggregate shall be substituted;
(hhh) in the Second Schedule,─
(i) in Part I,─
in clause (66),─
in sub-clause (xxxi), for the words Society for Welfare of Patients of SIUT, the words Society for the Welfare of SIUT shall be substituted;
after sub-clause (xxxv), the following new sub-clauses shall be added, namely:─
(xxxvi) Asian Infrastructure Investment Bank and persons as provided in Article 51 of Chapter IX of the Articles of Agreement signed and ratified by
(a)
(b)
(c)
in clauses (126A), (126AA), (126AC) and (126D), for the word Gawadar wherever occurring, the word Gwadar shall be substituted;
after clause (140), the following new clause shall be inserted, namely: ─
(140A) Any profit on debt received by Japan International Cooperation Agency (JICA), from Islamabad- Burhan Transmission Reinforcement Project (Phase-I) undertaken in pursuance to the loan agreement for Islamabad-Burhan Transmission Reinforcement Project (Phase-I).;
after clause (142), the following new clauses shall be added, namely:─
(143) Any income derived by a political party registered under the Political Parties Order, 2002 with the Election Commission of Pakistan.;
(144) Profit and gains derived by a startup as defined in clause (62A) of section 2 for the tax year in which the start-
up is certified by the Pakistan Software Export Board and the following two tax years.; and
(ii) in Part IV,─
in clause (11A), after sub-clause (xxviii), the following new sub-clause shall be added, namely:─
(xxix) start-up as defined in clause (62A) of section 2.;
clauses (41) shall be omitted;
after clause (43E), the following new clause shall be inserted, namely:─
(43F) The provisions of section 153 shall not apply in the case of a start-up, being recipient of payment, as defined in clause (62A) of section 2.;
in clause (56), in clause (ia), after the expression Gas and Oil Pakistan (Pvt) Ltd, the expression , Z&M Oils (Pvt) Ltd, Exceed Petroleum (Pvt) Ltd, Petrowell (Pvt.) Ltd, Quality-1 Petroleum (Pvt) Ltd, Horizon Oil Company (Pvt) Ltd, Outreach (Pvt) Ltd, Kepler Petroleum (Pvt) Ltd shall be inserted;
clause (56A) shall be omitted;
in clause (72A), for the figure 2016 the figure 2017 shall be substituted;
in clause (72B), in the second proviso, for the figure 110, the figure 125 shall be substituted; and
in clause (91),─
in sub-clause (i), in the Table, in column (1),─
against serial number (iv), in column (3), for the figure 8432.3090, the figure 8432.3900 shall be substituted; and
against serial number (xviii), in column (3), for the figure 8701.9020, the figure 8701.9200 shall be substituted;
in sub-clause (ii), in the Table, in column (1),─
against serial number (i), in column (3), for the figure 8432.3010, the figure 8432.3100 shall be substituted;
against serial number (ii), in column (3), for the figure 8432.3090, the figure 8432.3900 shall be substituted;
against serial number (iii), in column (3), for the figure 8432.3090, the figure 8432.3900 shall be substituted;
against serial number (iv), in column (3), for the figure 8432.4000, the figure 8432.4100 shall be substituted;
against serial number (v), in column (3), for the figure 8432.3090, the figure 8432.3900 shall be substituted;
against serial number (vi), in column (3), for the figure 8432.3010, the figure 8432.3100 shall be substituted; and
against serial number (vii), in column (3), for the figure 8432.3090, the figure 8432.3900 shall be substituted;
in clause (94),─
for the figure 2017, occurring for the first time, the figure 2018 shall be substituted;
after the words car rental services, the words and services rendered by Pakistan Stock Exchange Limited shall be inserted;
in the first proviso, for the expression tax year 2016 or 2017, as the case may be the expression any of the tax years 2016 to 2018 shall be substituted; and
in the second proviso for the figures 2017 and 2016, the figures 2018 and 2017 shall be respectively substituted; and
after clause (100), the following new clauses shall be added, namely:─
(101) The provisions of section 231A shall not apply in respect of cash withdrawal made from a Branchless Banking (BB) Agent Account utilized to render branchless banking services to customers.
(102) The provisions of section 231B(1A) shall not apply to light commercial vehicles leased under the Prime Ministers Youth Business Loan Scheme.;
(iii) in the Seventh Schedule,─
in rule 1, in sub-rule (g), for the full stop at the end a colon shall be substituted and thereafter the following explanation shall be added, namely:─
Explanation.─ For the removal of doubt, it is clarified that nothing in this sub-rule shall be so construed as to allow a notional loss, or charge to tax any notional gain on any investment under any regulation or instruction unless all the events that determine such gain or loss have occurred and the gain or loss can be determined with reasonable accuracy.; and
(jjj) in the Eight Schedule,─
in rule 1, in sub-rule (6), for the word thirty, the word forty-five shall be substituted; and
in rule 4, for the expression July 31st, the expression August 15th shall be substituted.
5. Amendments of the Federal Excise Act, 2005.─ In the Federal Excise Act, 2005, the following further amendments shall be made, namely:-
(1) in
section 2,
in clause
(8a), for
the words Federal
Government, the word Board
shall be substituted;
1.
in section 3,
in sub-section (1), in clause (c), for the words Federal Government, the words Board with the approval of the Minister-in-incharge of the Federal Government
shall be substituted; and
in sub-section (4), for the words Federal Government, the words Board with the approval of the Minister-in-incharge of the Federal Government shall
be substituted;
2. in section 16,
in sub-section (2), for the words Federal Government, the words Board with the approval of the Minister-in-ncharge of the Federal Government shall
be substituted;
in sub-section (5), for the words Federal
Government, the word Board shall be substituted; and
in sub-section (6), for the full stop at the end, a colon shall be substituted and thereafter
the following provisos
shall be inserted, namely:
Provided
that all such notifications, except those earlier
rescinded, shall be deemed to have been in force with effect from
1st July, 2016 and shall continue to be in force till 30th June, 2018, if not earlier rescinded:
Provided
further that all notifications issued on or after 1st July, 2016 shall continue
to be in force till 30th June, 2018, if not earlier
rescinded.;
3.
in section 19, for the existing sub-section (10), the following
shall be substituted, namely:
(10) Where any person is engaged in the manufacture or production of cigarettes in the manner
contrary to this Act or the
rules made thereunder
or otherwise evades duty of excise on
cigarettes or is engaged
in the manufacture or production of counterfeited cigarettes or tax stamps, banderoles, stickers, labels or barcodes,
or is engaged in the manufacturing or production of cigarettes packs without affixing, or affixing counterfeited, tax stamps, banderoles, stickers, labels or barcodes, the machinery, equipments, instruments or devices used in such manufacture or production shall, after outright confiscation, be destroyed in such manner as may be approved by the Commissioner and no person
shall be entitled
to any claim on any ground
whatsoever, or be otherwise
entitled to any compensation in respect of such machinery or equipments, instruments or devices and such confiscation or destruction shall be without prejudice to any other penal action which may be taken under the law against the person or in respect of the cigarettes, tax stamps, stickers, labels, barcodes or vehicles involved in or otherwise
linked or connected with the case.;
4. in section 29,
1.
in sub-section (1),
after clause (e), the following new clause (ea) shall be inserted, namely:
(ea) District Taxation
Officer; and
after clause (f), the following new clause (fa) shall be inserted, namely:
(fa) Assistant Director
Audit;
2.
after sub-section (1A),
the following
sub-sections shall be
inserted,
namely:
(1AA) The Chief Commissioners Inland Revenue shall perform their functions in respect of such persons or classes of persons of such areas as the Board may direct.
(1AB) The Commissioners Inland Revenue shall perform their functions
in respect of such persons
or classes of persons of such areas as the Chief Commissioner
to whom they are sub-ordinate may direct.;
3.
in sub-section (1B),
after the words Deputy Commissioner Inland Revenue, the comma and words , District Taxation Officer shall be inserted; and
after the words Assistant Commissioner Inland Revenue, the comma and words , Assistant Director Audit
shall be inserted;
4.
in sub-section (1C),
after the words Deputy Commissioner Inland Revenue, the comma and words , District Taxation Officer shall be inserted; and
after the words Assistant Commissioner Inland Revenue, the comma and words , Assistant Director Audit
shall be inserted;
5.
in section 37, after the first proviso, the following new proviso shall be inserted, namely:
Provided
that the Commissioner shall not issue notice under this section
or recovery rules made under the Federal Excise Rules, 2005 for
recovery of any tax due from a taxpayer
if the said taxpayer
has filed an appeal under section 33
in respect of the order under which the tax sought to be recovered has become payable
and the appeal has not been decided by the Commissioner (Appeals), subject
to the condition
that twenty-five per cent of the said amount of tax due has been paid by the taxpayer.;
6.
after section 43, the following new
section 43A shall
be
inserted, namely:
43A. Validation. All notifications and orders issued and notified in exercise of the powers conferred upon the Federal Government, before the commencement of Finance Act, 2017, shall
be
deemed to have been validly issued and notified in exercise
of those powers, notwithstanding anything contained in any judgment of a High Court or the Supreme Court.;
7. in section 47,
in sub-section (1), after
clause (c), the following new clause (d) shall be inserted, namely:
(d) sent electronically through email or to the e-folder maintained for the purpose
of e-filing of Sales Tax-cum-Federal Excise
returns by the limited
companies, both public and private.; and
in sub-section (2), after
clause (c), the following new clause (d) shall be inserted, namely:
(d) sent electronically through email or to the e-folder maintained for the purpose
of e-filing of Sales Tax-cum-Federal Excise
returns by the limited
companies, both public and private.;
8.
in the First Schedule,
N
in Table-1,
N.I for serial numbers 9a, 9b, 10a, 10b and the entries relating thereto, the following new serial numbers and entries relating thereto in columns (2), (3) and (4) shall be substituted, namely:
|
9. |
Locally produced cigarettes if their on- pack printed retail price exceeds four thousand five hundred rupees per thousand cigarettes. |
24.02 |
Rupees three thousand seven hundred and forty per thousand cigarettes |
|
10. |
Locally produced cigarettes if their on- pack printed retail price exceeds two thousand nine hundred and twenty- five rupees per thousand cigarettes but does not exceed four thousand five hundred rupees per thousand cigarettes. |
24.02 |
Rupees one thousand six hundred and seventy per thousand cigarettes |
|
10a. |
Locally produced cigarettes if their on- pack printed retail price does not exceed two thousand nine hundred and twenty-five rupees per thousand cigarettes. |
24.02 |
Rupees eight hundred per thousand cigarettes; |
N.II
in serial
number 13, in column
(4), for the words one rupee per kilogram, the words one Rupee and twenty- five paisa per kilogram shall be substituted; and
N.III
for the existing Restrictions after Table-1, the following shall be substituted, namely:
Restriction-1 Reduction.For the purpose of levy, collection and payment of duty at the rates specified
in column (4) against
serial number 9, no cigarette
manufacturer shall reduce retail price from the level adopted
on the day of the announcement of the latest
budget.
Restriction-3 Minimum Price. No brand shall be priced and sold at a retail price (excluding sales tax) lower than forty-five percent of the retail
price under column (2) serial
number 9 of Table-I
of the First Schedule to this Act.; and
O
in Table-2, against serial number 6, in column (4), for the words eighteen and a half, the word seventeen shall be substituted; and
9.
in the Third Schedule, in Table-1,
in serial number 19,
after the words materials and equipment, the brackets, words and commas
(plant, machinery, equipment, appliances and accessories)
shall be inserted; and
for the word Gawadar, wherever appearing, the word Gwadar shall
be substituted;
after serial number 20, the following new serial number
20A shall be inserted,
namely:
20A. Vehicles imported by China Overseas Ports Holding Company Limited (COPHCL) and its operating companies, namely:
A.
B.
Gwadar International Terminal
Limited;
C.
Gwadar Marine Services
Limited; and
D.
Gwadar Free Zone Company Limited;
for a period of twenty-three years for construction, development and operations of Gwadar
Port and Free Zone Area subject
to limitations, conditions prescribed under PCT heading 9917 (3)..
10.
In compliance with the provisions of sub-section (5) of section 16 of the Federal Excise
Act, 2005, all the notifications issued under sub-section (2) of section 16 of the Federal Excise Act, 2005 are enclosed herewith.
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, 2017 and shall come into force on the first day of July, 2017 except clauses 2(6), 3(7), 4(10) and 5(3) which shall have effect on the next day of assent given to this Act by the President of the Islamic Republic of Pakistan.
(SENATOR MOHAMMAD ISHAQ DAR)
Minister for Finance and Revenue
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