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
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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‖.
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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)
|
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(xxii)
|
Erasers
(PCT heading 4016.9210 and 4016.9290)
|
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(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)
|
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(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
|
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|
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
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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
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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;
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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.
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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
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Respective heading
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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
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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,
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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
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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
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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.
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147.
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Goods supplied to German Development Agency (Deutsche Gesellschaft für
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Respective heading
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Internationale
Zusammenarbeit) GIZ
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148.
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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;
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Respective heading
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149.
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Micro
feeder equipment
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8437.8000‖;
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(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)]
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NTN
or FTN of Importer
|
Approval No.
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(I)
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(II)
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Details of input goods
(to be filled
by the authorized officer of the
Regulatory Authority)
to be imported
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Description and specifications.
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Quantity/UOM
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L/C
No. or bank contract No. and
B/L.
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IGM No.
Date & Index No.
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Remarks, if any.
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(1)
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(2)
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(3)
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(4)
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(5)
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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.
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|
Details of equipment (to
be filled by the authorized officer of the Regulatory Authority) to be imported
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Description and specifications.
|
Quantity/UOM
|
L/C
No. or bank contract No. and B/L.
|
IGM No.
Date & Index No.
|
Remarks, if any.
|
|
(1)
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(2)
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(3)
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(4)
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(5)
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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:–
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―23.
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Match boxes
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Respective headings.‖;
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(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:–
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―17.
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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
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Nil
|
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Karachi Shipyard and Engineering Works Limited.
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18.
|
The following parts for assembling and manufacturing of personal computers and laptops:
|
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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
|
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(i)
Bare PCBs
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8534.0000
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(ii) Power
Amplifier
|
8542.3300
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(iii) Microprocessor/ Controllers
|
85.42
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(iv) Equipment for SMT Manufacturing
|
8486.2000
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(v) Laptop batteries
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8506.5000
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(vi)
Adopters
|
8504.4020
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(vii) Cooling fans
|
8414.5190
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(viii)
Heat sink
|
7616.9920
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(ix)
Hard Disk SSD
|
8471.7020
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(x) RAM/ROMS
|
8471.7060
and 8471.7090
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(xi) System on Chip/FPGA-IC
|
85.42
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(xii) LCD / LED Screen
|
8528.7211
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(xiii)
Motherboards
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8534.0000
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(xiv)
power supply
|
84.73
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(xv) Optical Drives
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8471.7040
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(xvi)
External Ports
|
8536.2090
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(xvii) Network
cards
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8517.6990
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(xviii)
Graphic cards
|
8471.5000
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(xix) wireless
cards
|
8517.6970
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(xx) micro
phone
|
8518.3000
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(xxi)
Trackpad
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8471.6020
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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
|
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limitations and restriction as a Federal Board of Revenue may impose
from time to time.
|
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(21)
in the Eight
Schedule,