Updated: Saturday July 10, 2021/AsSabt Thoul Hijjah 01, 1442/Sanivara Asadha 19, 1943, at 06:50:23 PM

The Finance Act, 2018

 

[AS PASSED BY THE NATIONAL ASSEMBLY]

 

AN ACT

to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2018, 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, 2018, 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, 2018.

(2)          It extends to the whole of Pakistan.

 

(3)          It shall come into force on the first day of July, 2018 except clauses 3(2), 3(3), 3(18), 3(19), 3(21) and 9(11)(A) which shall have effect on the next day of assent given to this Act by the President of Islamic Republic of Pakistan.

2.            Amendment of Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961).— In the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961), for the Fifth Schedule, the following shall be substituted, namely:—

―The Fifth Schedule [See sections 3(1) and 7]

S.No.

Petroleum Products

Unit

Maximum Petroleum Levy Rate (Rupees per Unit)


 

(1)

(2)

(3)

(4)

1.

High Speed Diesel Oil (HSDO)

Litre

30

2.

Motor Gasoline

Litre

30

3.

Superior Kerosene Oil (SKO)

Litre

30

4.

Light Diesel Oil (LDO)

Litre

30

5.

High Octane Blending Component (HOBC)

Litre

30

6.

E-10 Gasoline

Litre

30

7.

Liquefied Petroleum Gas (produced/extracted in Pakistan)

 

 

Metric Ton

 

 

20,000‖.

3.         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 (p), for the word ―twelve‖, the words ―twenty-four‖ shall be substituted; and

(b)          in clause (pa), after the word ―includes‖, the words and comma a local manufacturer,‖ shall be inserted;

(2)          in section 18,-

 

(a)          in sub-section (3), for the expression Board, with approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted; and


(b)          in sub-section (5), in the proviso, the expression ―, (3)‖ shall be omitted;

(3)          in section 19,-

 

(a)          in sub-section (1), for the expression Board, with approval of the Federal Minister-in-charge pursuant to the approval of the Economic Coordination Committee of Cabinet‖, the words ―Federal Government‖ shall be substituted; and

(b)          in sub-section (5), in the second proviso, for the figure ―2018‖, the figure ―2019 shall be substituted;

(4)          after section 25A, the following new section shall be inserted, namely:-

 

25AA. Power to use data exchange information for determination of customs value.- Any information or data, available under clause (b) of sub-section (1) of section 219A, may be utilized for the purpose of assessment including valuation.‖;

(5)          in section 32, in sub-section (3), in the proviso, for full stop at the end a colon shall be substituted and thereafter the following second proviso shall be added, namely:-

―Provided further that the aforesaid action shall also not be initiated in case full amount of short paid duty, taxes or other charges are paid voluntarily prior to initiation of audit inquiry or investigation.‖;

(6)          in section 33, after sub-section (3), the following new sub-section shall be inserted, namely:-


―(3A) The claim filed under this section shall be disposed of within a period not exceeding one hundred and twenty days from the date of filing of such claim:

Provided that the said period may, for reasons to be recorded in writing, be extended by the Collector of Customs for a period not exceeding ninety days.‖;

(7)          in section 42, in sub-section (2), in the second proviso, in clause (a),-

 

(a)          for the word ―give‖, the word ―deliver‖ and for the word ―notice‖, the word ―information‖ shall be substituted;

(b)          in sub-clause (iii), for the word ―crew‖, the words ―passengers and crew manifest‖ shall be substituted; and

(c)          in sub-clause (iv), after the word ―passengers‖, the words ―and crew name record information shall be inserted;

(8)          in section 55, in sub-section (1), in clause (e), after the words ―delivery‖, the words or other dues in connection with discharge and delivery of goods‖ shall be inserted;

(9)          after section 83, the following new section shall be inserted, namely:-

 

―83B. Provisional release of imported goods.- Where any offence is detected in respect of imported goods which are not liable to confiscation or needed for evidence at a later stage, the Collector of Customs may, on written request of owner of the goods, allow release of the same on payment of duty, taxes or other charges and furnishing bank


guarantee or pay order against the amount of any penalty or fine which may be imposed on such goods.‖;

(10)       in section 138, in sub-section (1), after the word and comma ―consignee,‖, the words ―or where consignee has dishonored his commitments‖ shall be inserted;

(11)       in section 156, in the TABLE,-

 

(a)          in clause 12A, in columns (1) and (3), after the figure and letter

 

―26A‖, the expression ―and 155M shall be inserted; and

 

(b)          for clause 63 and entries relating thereto in columns (1), (2) and (3), the following new clause and entries related thereto shall be substituted, namely:-


―63 (i)     If      any      goods

 

which are loaded for transshipment, are               pilfered, replaced en-route or failed to reach the           port     of

destination, or any   person tranships goods not allowed to be


such goods and the conveyance illegally carrying these goods shall be liable to confiscation and any person including the custodian involved in the offence and the bonded carrier shall be liable to a penalty not exceeding ten times the value of the goods and he shall


121


transshipped:                     further be liable, upon conviction by a Special Judge, to imprisonment for a term not exceeding seven years; and


(ii)            If     any      person contravenes      any rule                      relating           to transshipment other                         than mentioned                                  in clause (i),


such person including the custodian and the inland carrier shall be liable to penalty not exceeding five hundred thousand rupees  or three times the amount of duties and taxes involved.


121‖;


(12)       in section 182, for the words ―officer who orders confiscation‖, the words

 

―officer  or  person  authorized  by  the  Collector  or  Director‖  shall  be substituted;

(13)       in section 193A, after sub-section (2), the following new sub-section shall be inserted, namely:-

―(2A) The Collector (Appeals) may, for a period not exceeding thirty days, stay recovery of duty and taxes on filing of appeal and after affording opportunity of being heard to the officer of the concerned Collectorate or Directorate.‖;


(14)       in section 194B, in sub-section (3), for the word and comma ―Controller,‖, the word ―Director‖ shall be substituted;

(15)       in section 207, after the word ―agent‖, the words or a shipping agent‖, shall be inserted;

(16)       after section 212, the following new section shall be inserted; namely:-

 

212A.- Authorized economic operator programme.- (1) The Federal Government may, by notification in the official Gazette, devise authorized economic operator programme to provide facilitations relating to secure supply chains of imported and exported goods through simplified procedures with regard to regulatory controls applicable thereon.

(2) The Board may, with approval of the Federal Government, prescribe rules on matters pertaining to authorized economic operator programme.‖;

(17)       in section 219, after sub-section (3), the following new sub-section shall be inserted, namely:-

―(3A) Rules made under this section shall be subject to the condition of previous publication.‖;

(18)       section 221A shall be re-numbered as sub-section (1) of that section and thereafter, the following new sub-section shall be added, namely:-

―(2) Notwithstanding any order or judgment of any court, a High Court and the Supreme Court, the regulatory duty already levied, collected and realized in exercise of any powers under this Act, before the commencement of the Finance Act, 2018 and after the commencement of


the Finance Act, 2017, shall be deemed to have been validly levied, collected and realized under this Act, in exercise of the powers conferred on the commencement of the Finance Act, 2018, and where any such regulatory duty has not been levied, collected or realized, the same shall be recoverable in accordance with the provisions of this Act.‖;

(19)       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);

(20)       in the Third Schedule to the Customs Act, 1969 (IV OF 1969), after item 22B, the following new item shall be inserted, namely:-

―22C. Matters pertaining to Authorized Economic Operator (AEO) programme, including criteria for granting status of AEO to an applicant, suspension and revocation of the AEO status; and the extent of benefits under AEO programme.‖; and

(21)       the  Fifth  Schedule  to  the  Customs  Act,  1969  (IV  of  1969),  shall  be substituted in the manner provided for in the Second Schedule to this Act.

4.            Amendments of Members of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974).— In the Members of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974), the following further amendments shall be made, namely:—

(1)          in section 10,-

 

(a)           in sub-section (1), for the words, ―Pakistan International Airlines‖ the words, ―any Pakistani airline shall be substituted; and

(b)          in sub-section (2A), for the words, ―twenty the words, ―twenty five shall be substituted;


(2)          in section 12,-

 

(a)          in sub-section (1), the words, ―including medical facilities‖ shall be omitted;

(b)          in sub-section (2), the words, ―and also medical facilities as is admissible to a sitting member under sub-section (1)‖ shall be omitted; and

(c)          after sub-section (2), the following new sub-section (3) and (4), shall be added, namely:-

―(3) A member and ex-member shall be entitled to the same medical facilities as are admissible to an officer of BPS-22 of the Federal Government.

(4)        An ex-member and his spouse shall be entitled to the gratis official (blue) passport. ; and

(3)          in section 13A, in sub-section (1), in paragraph (a) for the words, twelve thousand and seven hundred‖, the words ―twenty five thousand‖ shall be substituted.

5.            Amendment of Chairman and Speaker (Salaries, Allowances and Privileges) Act, 1975 (LXXXII of 1975).— In the Chairman and Speaker (Salaries, Allowances and Privileges) Act, 1975 (Act LXXXII of 1975), in section 18, after the word

―Speaker‖, the words ―including a person who has held such office after election thereto shall be inserted.

6.            Amendment of Sales Tax Act, 1990.─ In the Sales Tax Act, 1990, the following further amendments shall be made, namely:-


(1)          in section 3,–

 

(a)          in sub-section (1A), for the word ―two‖, the word ―three‖ shall be substituted;

(b)          in sub-section (2), in clause (b), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted;

(c)          in sub-section (3A), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted; and

(d)          in sub-section (5), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted;

(2)          in section 4, in clause (c), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted;

(3)          in section 7,–

 

(a)          in sub-section (3), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted; and

(b)          in sub-section (4), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted;

(4)          in section 7A,–


(a)          in sub-section (1), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted; and

(b)          in sub-section (2), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted;

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

 

(a)          in clause (b), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted; and

(b)        after clause (l), the following new clause (m) shall be added, namely:–

―(m)   import of scrap of compressors falling under PCT heading 7204.4940.‖;

(6)          after  section  11A,  the  following  new  section  11B  shall  be  inserted, namely:–

―11B. Assessment giving effect to an order.– (1) Except where sub-section (2) applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person, the Commissioner or an officer of Inland Revenue empowered in this behalf  shall issue the order within one year from the end of  the


financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.

(2) Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is served with the order:

Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred against the order passed by Appellate Tribunal or a High Court.

(7)          in section 13, in sub-section (2), in clause (a), the expression "Board with the approval of the Federal Minister-in-charge may pursuant to the approval of the Economic Coordination Committee of the Cabinet", the expression "Federal Government may" shall be substituted;

(8)          in section 25, in sub-section (2), in the second proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:–


―Provided  also  that  audit  under  this  section  shall  be conducted only once in every three years.‖;

(9)          for section 30A, the following shall be substituted, namely:–

 

―30A. Directorate General (Intelligence and Investigation), Inland Revenue.– (1) The Directorate General (Intelligence and Investigation) Inland Revenue shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and such other officers as the Board may, by notification in the official Gazette, post.

(2)          The Board may, by notification in the official Gazette,–

 

(a)          specify  the  functions  and  jurisdiction  of  the  Directorate General and its officers; and

(b)          confer the powers of authorities specified in section 30 upon the Directorate General and its officers.‖;

(10)       in section 34, in sub-section (1), in clause (a), for the expression KIBOR plus three‖, the word ―twelve shall be substituted;

(11)       in section 40B,–

 

(a)          the words ―or Chief Commissioner‖ shall be omitted; and

 

(b)          for  the  colon  at  the  end,  a  full  stop  shall  be  substituted  and thereafter the proviso and the explanation shall be omitted;

(12)       for section 47A, the following shall be substituted, namely:–


47A. Alternative Dispute Resolution.— (1) Notwithstanding any other provision of this Act, or the rules made thereunder, an aggrieved person in connection with any dispute pertaining to—

(a)          the liability of tax against the aggrieved person, or admissibility of refunds, as the case may be;

(b)          the extent of waiver of default surcharge and penalty; or

 

(c)          any other specific relief required to resolve the dispute, may apply to the Board for the appointment of a Committee for the resolution of any hardship or dispute mentioned in detail in the application, which is under litigation in any Court of Law or an Appellate Authority, except where criminal proceedings have been initiated or where interpretation of question of law is involved having effect on other cases.

(2)          The Board may, after examination of the application of an aggrieved person, appoint a Committee, within sixty days of receipt of such application in the Board, comprising,—

(i)            an officer of Inland Revenue not below the rank of a Commissioner;

(ii)          a person to be nominated by the taxpayer from a panel notified by the Board comprising,-

(a)          senior chartered accountants and senior advocates having experience in the field of taxation; and


(b)          reputable businessmen as nominated by Chambers of Commerce and Industry:

Provided that the taxpayer shall not nominate a Chartered Accountant or an advocate if the said Chartered Accountant or the advocate is or has been an auditor or an authorized representative of the taxpayer; and

(iii)         a retired Judge not below the rank of District and Sessions Judge, to be nominated through consensus by the members appointed under clauses (i) and (ii).

(3)          The aggrieved person, or the Commissioner, or both, as the case may be, shall withdraw the appeal pending before any Court of Law or an Appellate Authority, after constitution of the Committee by the Board under sub-section (2).

(4)          The Committee shall not commence the proceedings under sub- section (5) unless the order of withdrawal by the Court of Law or an Appellate Authority is communicated to the Board:

Provided that if the order of withdrawal is not communicated within seventy five days of the appointment of the Committee, the said Committee shall be dissolved and provisions of this section shall not apply.

(5)          The Committee appointed under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of the Inland Revenue or any other person to


conduct an audit and shall decide the dispute by majority, within one hundred and twenty days of its appointment:

Provided that in computing the aforesaid period of one hundred and twenty days, the period, if any, for communicating the order of withdrawal under sub-section (4) shall be excluded.

(6)          The recovery of tax payable by a taxpayer in connection with any dispute for which a Committee has been appointed under sub-section (2) shall be deemed to have been stayed on withdrawal of appeal upto the date of decision by the Committee.

(7)          The decision of the committee under sub-section (5) shall be binding on the Commissioner and the aggrieved person.

(8)          If the Committee fails to decide within the period of one hundred and twenty days under sub-section (5), the Board shall dissolve the Committee by an order in writing and the matter shall be decided by the Court of Law or the Appellate Authority which issued the order of withdrawal under sub-section (4) and the appeal shall be treated to be pending before such a Court of Law or the Appellate Authority as if the appeal had never been withdrawn.

(9)          The Board shall communicate the order of dissolution to the Court of Law or the Appellate Authority and the Commissioner.

(10)       The aggrieved person, on receipt of the order of dissolution, shall communicate it to the Court of Law or the Appellate Authority which shall decide the appeal within six months of the communication of said order.


(11)       The aggrieved person may make the payment of sales tax and other taxes as decided by the Committee under sub-section (5) and all decisions, orders and judgments made or passed shall stand modified to that extent.

(12)       The Board may prescribe the amount to be paid as remuneration for the services of the members of the Committee, other than the member appointed under clause (i) of sub-section (2).

(13)       The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.‖;

(13)       in section 48, in sub-section (1), in the proviso, for the words ―twenty-five‖, the word ―ten‖ shall be substituted;

(14)       in section 58, for the expression ―Companies Ordinance, 1984 (XLVII of 1984‖, the expression ―Companies Act, 2017 (XIX of 2017)‖ shall be substituted;

(15)       in section 60, for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted;

(16)       in section 65, for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted;

(17)       in section 71, in sub-section (1), for the words ―Board with the approval of the Federal Minister-in-charge‖, the words ―Federal Government‖ shall be substituted;

(18)       in section 74A,–


(a)          the existing provision shall be numbered as sub-section (1) of that section;

(b)          in sub-section (1), numbered as aforesaid, for the figure ―2017‖, the figure ―2018 shall be substituted; and

(c)          after sub-section (1), numbered and amended as aforesaid, the following new sub-section (2) shall be added, namely:–

―(2) Notwithstanding any omission, irregularity or deficiency in the establishment of or conferment of powers and functions on the Directorate General (Intelligence and Investigation), Inland Revenue and authorities specified in section 30A, all orders passed, notices issued and actions taken, before commencement of the Finance Act, 2018, in exercise or purported exercise of the powers and functions of the officers of Inland Revenue under this Act by the Director General (Intelligence and Investigation), Inland Revenue or the authorities specified in section 30A shall be deemed to have been validly passed, issued and taken under this Act.‖;

(19)       in the Fifth Schedule, in column (1), against serial number 12, in column (2), after clause (xix), the following new clauses shall be added, namely:–

―(xx)

Colors in sets (PCT heading 3213.1000).

(xxi)

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

(xxii)

Erasers (PCT heading 4016.9210 and 4016.9290)


 

(xxiii)

Exercise books (PCT heading 4820.2000)

(xxiv)

Pencil sharpeners (PCT heading 8214.1000)

(xxv)

Geometry boxes (PCT heading 9017.2000)

(xxvi)

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

(xxvii)

Pencils including color pencils ( PCT heading 96.09)‖.;

(20)       in the Sixth Schedule,–

 

(A)         in Table-1, in column (1), after serial number 136 and the entries relating thereto in columns (2) and (3), the following new serial numbers and the entries relating thereto shall be added, namely:–

―137.

Paper weighing 60 g/m2  for printing of

 

Holy Quran imported by Federal or Provincial Governments and Nashiran-e- Quran as per quota determined by IOCO

4802.5510

138.

Fish Feed

Respective heading

139.

Fans for dairy farms

8414.5990

140.

Bovine semen

0511.1000

141.

Preparations for making animal feed

2309.9000

142.

Promotional and advertising material including technical literature, pamphlets, brochures and other give-aways of no commercial value, distributed free of cost

9920(3)


 

 

by the exhibitors

 

143.

(i) Hearing aids (all types and kinds) (ii) Hearing assessment equipment;

(a)  Audiometers

 

(b)  Tympanometer

 

(c)  ABR

 

(d)  Oto Acoustic Omission

9937

144.

Liquefied Natural Gas imported by fertilizer manufacturers for use as feed stock

2711.1100

145.

Plant, machinery, equipment including dumpers and special purpose motor vehicles, if not manufactured locally, imported by M/s China State Construction Engineering Corporation Limited (M/s CSCECL) for the construction of Karachi – Peshawar Motorway (Sukkur – Multan Section) and M/s China Communication Construction Company (M/s CCCC) for the construction of Karakorum Highway (KKH) Phase-II (Thakot - Havellian Section)       subject   to   the   following

Respective heading


 

 

conditions:

 

(i)            that the exemption under this serial number shall only be available to contractors named above;

(ii)          that the equipment and construction machinery imported under this serial number shall only be used for the construction of the respective allocated projects;

(iii)         that the importer shall furnish an indemnity bond, in the prescribed manner and format as set out in Annex-A, at the time of import to the extent of sales tax exempted under this serial number on consignment to consignment basis;

(iv)         that the Ministry of Communications shall certify in the prescribed manner and format as set out in Annex-B that the imported         equipment         and

 


 

 

construction machinery are bona fide requirement for  construction of Sukkur – Multan Section (392.0 km) of Karachi – Peshawar Motorway or for the construction of Karakorum Highway(KKH) Phase-II - Thakot to Havellian Section (118.057 km) as the case may be;

(v) for  the  clearance  of  imported goods through Pakistan Customs Computerized System the authorized officer of the Ministry shall furnish all relevant information, as set out in Annex- B, online against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Director Reforms and Automation

 


 

 

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;

(vi)         that the equipment and construction machinery, imported under this serial number, shall not be re-exported, sold or otherwise disposed of without prior approval of the FBR. In case goods are sold or otherwise disposed of with prior approval of  FBR the same shall be subject to payment of sales tax as may be prescribed by the FBR;

(vii)        in case the equipment and construction machinery, imported

 


 

 

under this serial number, is sold or otherwise disposed of without prior approval of the FBR in terms of para (vi) above, the same shall be subject to payment of statutory rates of sales tax as were applicable at the time of import;

(viii)       notwithstanding the condition at para (vi) and  (vii) above, equipment and construction machinery, imported under this serial number, may be surrendered at any time to the Collector of Customs having jurisdiction, without payment of any sales tax , for further disposal as may be prescribed by the FBR;

(ix)         the indemnity bond submitted in terms of para (iii) above by the importer shall be discharged on the fulfillment of conditions stipulated at para (vi) or   (vii) or

(viii) above, as the case may be;

 


 

 

and

 

(x) that violation of any of the above mentioned conditions shall render the goods liable to payment of statutory rate of sales tax leviable on the date of clearance of goods in addition to any other penal action under relevant provisions of the law.

 

146.

Equipment imported by M/s China Railway Corporation to be furnished and installed in Lahore Orange Line Metro Train Project subject to the following conditions:

(a)         that the equipment imported under this serial number shall only be used in the aforesaid Project;

(b)       that the importer  shall  furnish an indemnity bond, in the prescribed manner and format as set out in Annex-C to this serial number, at the time of import to the extent of sales   tax   exempted   under   this

Respective heading


 

 

serial  number  on  consignment  to consignment basis;

(c)       that the Punjab Mass Transit Authority, established under the Punjab Mass Transit Authority Act, 2015 (ACT XXXIII of 2015), hereinafter referred as the Regulatory Authority, shall certify in the prescribed manner and format as set out in Annex-D to this serial number that the imported equipment is bona fide requirement of the Project under the Contract No. PMA-CR- NORINCO-OL, dated 20.04.2015, hereafter referred as the contract, signed between the Regulatory Authority and CR-NORINCO;

(d)       in the event a dispute arises whether any item is entitled to exemption under this serial number, the  item shall be immediately    released    by    the

 


 

 

Customs Department against a corporate guarantee, valid for a period of six months, submitted by the importer. A certificate from the Regulatory Authority duly verified by the Transport and Communication Section of the Ministry of Planning, Development and Reform, that the item is covered under this  serial number shall be given due consideration by the Customs Department towards finally resolving the dispute;

(e) for the clearance of imported equipment through Pakistan Customs Computerized System the authorized officer of the Regulatory Authority shall furnish all relevant information, as set out in Annex-D to this serial number, online against a specific user ID and password obtained under section 155D of the Customs Act,

 


 

 

1969 (IV of 1969). In Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Director Reforms and Automation 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;

(f) that the equipment, imported under this serial number, shall not be re- exported, sold or otherwise disposed of without prior approval of the Federal Board of Revenue (FBR). In case goods are sold or otherwise disposed of with prior approval of FBR the same shall be

 


 

 

subject to payment of sales tax as may be prescribed by the FBR;

(g)       in case the equipment, imported under this serial number, is sold or otherwise disposed of without prior approval of the FBR in terms of condition (f), the same shall be subject to payment of statutory rates of sales tax as were applicable at the time of import;

(h)       notwithstanding the condition (f) and (g), equipment imported under this serial number may be surrendered at any time to the Collector of Customs having jurisdiction, without payment of any sales tax, for further disposal as may be prescribed by the FBR;

(i)         the indemnity bond submitted in terms of condition (b) above shall stand discharged on submission of a certificate from the Regulatory Authority  to  the  effect  that  the

 


 

 

equipment has been installed or consumed in the said Project. In case the equipment is not consumed or installed in the project the indemnity bond shall be discharged on fulfillment of conditions stipulated at (f) or (g) or (h), as the case may be; and

(j) that violation of any of the above conditions shall render the goods liable to payment of statutory rate of sales tax leviable on the date of clearance of goods in addition to any other penal action under relevant provisions of the law.

Explanation. For the purpose of this provision, ―equipment‖ shall mean machinery, apparatus, materials and all things to be provided under the contract for incorporation in the works relating to Lahore Orange Line Metro Train Project.

 

147.

Goods supplied to German Development Agency    (Deutsche     Gesellschaft     fόr

Respective heading


 

 

Internationale Zusammenarbeit) GIZ

 

148.

Imported construction materials and goods imported by M/s China State Construction Engineering Corporation Limited (M/s CSCECL), whether or not locally manufactured, for construction of Karachi-Peshawar Motorway (Sukkur- Multan Section) subject to fulfilment of same conditions, limitations and restrictions as are specified under S. No.

145 of this table, provided that total incidence of exemptions of all duties and taxes in respect of construction materials and goods imported for the project shall not exceed ten thousand eight hundred ninety-eight million rupees including the

benefit of exemption from duties and taxes availed before 30th June, 2018 under the provisions  of the Sales Tax Act, 1990, the Customs Act, 1969, the Federal Excise Act, 2005 and the Income Tax Ordinance, 2001 and Notifications issued thereunder;

Respective heading


 

149.

Micro feeder equipment

8437.8000‖;

(B)         after Table-1, amended as aforesaid, the following shall be added, namely:–

Annex-A

 

[See condition 145(iii)]

 

INDEMNITY BOND

 

( On appropriately stamped non-judicial paper )

 


THIS  DEED  OF  INDEMNITY  is  made  on  the                                                   


date  of


 

                                          BETWEEN Messrs                              having registered office at

 

                                        (hereinafter called "the importers" which means and includes their successors,  administrators, executors and assignees) of the one part, AND the President of Pakistan through the Collector of Customs

                                         (hereinafter called the "Collector of Customs"), of the other part.

WHEREAS the Federal Government, by its decision contained in serial number 145 or serial number 148 of this table, as the case may be, and subject to the conditions given in the said serial number 145 or serial number 148 of this table, as the case may be, has been pleased to direct that such equipment and construction machinery, as are not manufactured locally, shall be exempt from the whole of sales tax leviable thereon, in accordance with the said serial number 145 or serial number 148 of this table, as the case may be, if imported for :-


(i)          construction of Sukkur – Multan Section (392.0 km) of Karachi –

 

Peshawar Motorway or

 

(ii)          for the construction of Karakorum Highway (KKH) Phase-II - Thakot to Havellian Section (118.057 km).


AND                       WHEREAS      M/S._                        


having     registered      office     at


 

                                            (hereinafter      called     the    importers)    have    imported    the equipment and/or construction machinery mentioned in the said  serial number 145 or serial number 148 for purposes of construction of above mentioned project(s) in accordance with the conditions given in the said serial number 145 or serial number 148 of this table, as the case may be; NOW, THEREFORE, in consideration of the release of the equipment and/or construction machinery without recovery of leviable sales tax, the importers  bind  themselves  to  pay  on  demand  to  the  Government  of Pakistan the sum of Rs.                                                          being the sales tax and charges leviable on the machinery, if the importers fail to fulfill the condition (vi) or

(vii) or (viii) of the said serial number 145 or serial number 148 of this table, as the case may be.

The importers further agree and bind themselves that the amount covered by this Bond shall be recovered as arrears of sales tax under section 202 of the Customs Act, 1969. This Bond shall become void when the Collector of Customs is satisfied that the importers have fulfilled all the conditions of the said serial number 145 or serial number 148 of this table, as the case may be.


Signed by importers on this                                                                      day of

 

                                                201_.

 

Managing Director (Name and permanent address)

Collector of Customs (On behalf of President)

Witness                                                                                                                                

 

(signature, name, designation and full address)

 

Witness                                                                                                                                

 

(signature, name, designation and full address)

 

Note: The bond shall be written on appropriate non-judicial stamp paper and shall be witnessed by a Government servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an officer of a Schedule Bank.

Annex-B

 

[See condition 145 (iv) and (v)]

 

NTN or FTN of Importer

Approval No.

(I)

(II)

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

Description and specifications.

Quantity/UOM

L/C No. or bank contract No. and B/L.

IGM No.

 

Date & Index No.

Remarks, if any.

 

(1)

(2)

(3)

(4)

(5)

 


CERTIFICATE       BY     THE     AUTHORIZED     OFFICER       OF     REGULATORY AUTHORITY:

It is hereby certified that the description, quantity and other details mentioned above are true and correct. Goods imported are in commensuration with the project requirement and are bona fide requirement of the project. It is further certified that the above items shall not be used for any other purpose except for the project.

Signature:                                                                        

 

Name & Designation:                                                                  

 

Official Stamp:

 

Date:

 

Note: - For the purposes of this serial number 145, the expression "not manufactured locally" shall mean the goods which are not listed in the locally manufactured items in the Customs General Order issued by the Federal Board of Revenue from time to time.

Annex-C

 

[See condition 146(b)]

 

INDEMNITY BOND

 

(On  appropriately stamp  non-judicial  paper  attested  by  a  Government

 

servant in BPS 17 or above, an Oath Commissioner, a Notary Public or an

 

officer of a Scheduled Bank)

 


THIS  DEED  OF  INDEMNITY  is  made  on  the                                                   


date  of


 

                                          BETWEEN Messrs                              having registered office at


                                         (hereinafter called "the importers" which means and includes their successors,  administrators, executors and assignees) of the one part, AND the President of the Islamic Republic of Pakistan through the Collector  of  Customs         (hereinafter called the "Collector of Customs"), of the other part.

WHEREAS the Federal Government, by its decision contained in serial number 146 and subject to the conditions given in the said serial number 146, has been pleased to direct that such equipment shall be exempt from the whole of sales tax leviable thereon, in accordance with the said serial number 146, if imported for Lahore Orange Line Metro Train Project.

AND WHEREAS M/S._                                              , the importers have imported the equipment mentioned in the said serial number 146 for the above mentioned project in accordance with the conditions given in the said serial number 146;

NOW, THEREFORE, in consideration of the release of the equipment without recovery of leviable sales tax, the importers bind themselves to pay  on  demand  to  the  Government  of  Pakistan  the  sum  of  Rs.

                                           being the sales tax and charges leviable on the equipment, if the importers fail to fulfill the condition (f) or (g) or (h) of the said serial number 146, as the case may be.

The importers further agree and bind themselves that the amount covered by this Indemnity Bond shall be recovered as arrears of sales tax under section 202 of the Customs Act, 1969. This Bond shall stand revoked


automatically when the Collector of Customs is satisfied that the importers have fulfilled all the conditions of the said serial number 146.


Signed                           by       importers       on       this                                     


day       of


 

                                                         201_.

 

Managing Director or person next in hierarchy duly authorized by MD

 

(Name and permanent address) Collector of Customs (On behalf of President)

Witness (1)                                                                                                                       

 

(signature, name, designation and full address)

 

Witness (2)                                                                                                                       

 

(signature, name, designation and full address)

 

Annex-D

 

[See conditions 146 (c) and (e)]

 

NTN or FTN of Importer

Approval No.

Details of equipment (to be filled by the authorized officer of the Regulatory Authority) to be imported

Description and specifications.

Quantity/UOM

L/C No. or bank contract No. and B/L.

IGM No.

 

Date & Index No.

Remarks, if any.

(1)

(2)

(3)

(4)

(5)

CERTIFICATE BY THE AUTHORIZED OFFICER OF REGULATORY AUTHORITY:


It is hereby certified that the description, quantity and other details mentioned above are true and correct. Goods imported are in commensuration with the project requirements and are bona fide requirement of the Project under the Contract. It is further certified that the above items shall not be used for any other purpose except for the Project.

Signature:

 

Name and Designation:                                                              

 

Official Stamp:

 


Date:


                                                      ‖;

 

(C)         in Table 2, after serial number 22, a new serial number and entries relating thereto in column numbers (2) and (3) shall be added, namely:–


―23.

Match boxes

Respective headings.‖;

(D)         in Table-3, after the omitted serial number 16 and omitted entries relating thereto, the following new serial numbers and entries relating thereto in columns (2), (3) and (4) shall be added, namely:–

―17.

Machinery,  equipment, raw materials, components and other capital goods for use in building, fittings, repairing or refitting of ships, boats or floating structures    imported    by

Respective heading

Nil


 

 

Karachi Shipyard and Engineering              Works Limited.

 

 

18.

The following parts for assembling                    and manufacturing of personal computers and laptops:

 

If imported by manufacturers and assemblers of computers and     laptops, registered with           and

certified       by Engineering Development Board            in accordance with        quota determined by IOCO

(i) Bare PCBs

8534.0000

(ii) Power Amplifier

8542.3300

(iii) Microprocessor/ Controllers

85.42

(iv) Equipment for SMT Manufacturing

8486.2000

(v) Laptop batteries

8506.5000

(vi) Adopters

8504.4020

(vii) Cooling fans

8414.5190

(viii) Heat sink

7616.9920

(ix) Hard Disk SSD

8471.7020

(x) RAM/ROMS

8471.7060

 

and 8471.7090

(xi) System on Chip/FPGA-IC

85.42


 

 

(xii) LCD / LED Screen

8528.7211

 

(xiii) Motherboards

8534.0000

(xiv) power supply

84.73

(xv) Optical Drives

8471.7040

(xvi) External Ports

8536.2090

(xvii) Network cards

8517.6990

(xviii) Graphic cards

8471.5000

(xix) wireless cards

8517.6970

(xx) micro phone

8518.3000

(xxi) Trackpad

8471.6020

19.

Plant and machinery, except the items listed under Chapter 87 of the Pakistan Customs Tariff, imported for setting up of a Special Economic Zone (SEZ) by zone developers and for installation in that zone by zone enterprises, on one time basis as prescribed in the SEZ Act, 2012 and rules thereunder subject to such condition,

9917(2)

Nil‖; and


 

 

limitations and restriction as a Federal Board of Revenue may impose from time to time.

 

 

(21)       in the Eight Schedule,