It is hereby enacted as follows:—

1. Short title and commencement.—(1) This Act shall be called the Finance Act, 2021.

(2) It shall, unless specified otherwise, come into force on the first day of July, 2021.

2. Amendments of Stamp Act, 1899 (II of 1899).—In the Stamp Act, 1899 (II of 1899), the following further amendments shall be made, namely:—

(1) in section 2,—

(a) for clause (11), the following shall be substituted:—

“(11) “duly stamped” means affixation of an adhesive or impressed stamp or e-stamp of not less than the requisite amount and that the stamp has been legally affixed, used or electronically generated,”;

(b) after clause (11), amended as aforesaid, the following clause (11A) shall be inserted, namely;

“(11A) “e-stamp” means a paper printed or partially printed containing a bar code or having any of its unique identification code and such other information, as may be specified by the rules, to be generated and printed, on deposit of money equivalent to chargeable stamp duty in the account of the Government”;

(a) the label affixed and impressed by the proper officer;

(b) the stamp embossed or engraved on a stamp paper; and

(d) in clause (14), after the word “recorded”, the words “and includes any instrument executed in electronic form” shall be inserted.

(2) In section 10,—

(a) in sub-section (1), after the word “stamps”, the words “or e-stamps” shall be inserted; and

(b) in sub-section (2), in clause (a), after the word “stamps”, the words “or e-stamps” shall be inserted.

(3) After section 32, the following section 32A shall be inserted, namely:—

“32A. Certificate of designated officer.—An officer designated by the Government shall, by notification in the official Gazette, issue a certificate as to genuineness or otherwise of an e-stamp for the purpose of evidence in a legal proceedings”.

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 (kka), for the expression “bill of lading, airway bill”, the expression “master bill of lading, bill of lading, airway bill, certificate of origin” shall be substituted;

(b) after clause (kkb), the following new clause shall be added, namely:—

“(kkc) “electronic assessment” means assessment of a goods declaration in Customs Computerized System by an officer of Customs or by the computerized system according to the selectivity criteria;”;

“(ld) “Vessel Intimation Report” or “VIR” means an intimation regarding impending arrival of a vessel at a customs sea port, where the customs computerized system is operational, to the customs authorities in the form and manner, by the carrier or his agent, as may be prescribed by rules;”;and

(d) in clause (s), after the word “concealing”, the expression “, retailing” shall be inserted;

(2) after section 3CCA, the following new section shall be added, namely:—

“3CCB. Directorate General of National Nuclear Detection Architecture.—The Directorate General of National Nuclear Detection Architecture shall consist of a Director General and as many Deputy Director Generals, Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.”;

(3) after section 3CCB, the following new section shall be added, namely:—

“3CCC. Directorate General of Marine.—The Directorate General of Marine 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) for section 12, the following shall be substituted, namely:—

“12. Power to appoint or licence public warehouses.—(1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time, appoint or licence public warehouses wherein dutiable goods may be deposited without payment of customs-duty.

(2) Every application for a licence for a public warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:

Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.

(3) A licence granted under this section may be cancelled by the respective Collector of Customs in his own jurisdiction for infringement of any condition laid down in the licence or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper

opportunity of showing cause against the proposed cancellation.

(4) Pending consideration whether a licence be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend the licence.”;

(5) after section 12, the following new section shall be added, namely:—

“12A. Power to appoint or licence common warehouses.—

(1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time, appoint or licence common warehouses wherein dutiable goods may be deposited without payment of customs-duty on owner or licensee own account.

(2) Every application for a licence for a common warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:

(4) Pending consideration whether a licence be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend the licence.”;

(6) for section 13, the following shall be substituted, namely:—

“13. Power to licence private warehouses.—(1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time,

licence private warehouses wherein dutiable goods may be deposited without payment of customs-duty.

(2) Every application for a licence for a private warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction:

(3) A licence granted under this section may be cancelled by the Collector of Customs in his own jurisdiction for infringement of any condition laid down in the licence or for any violation of any of the provisions of this Act or any rules made thereunder, after the licensee has been given proper opportunity of showing cause against the proposed cancellation.

(4) Pending consideration whether a licence may be cancelled under sub-section (3), the respective Collector of Customs in his own jurisdiction may suspend that licence.”;

(7) in section 18E, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

“Provided further that the Board may constitute a committee or a centre for the purpose of settlement of disputes regarding classification of goods and may prescribe rules or procedure for carrying out the purpose of this section.”;

(8) in section 19, in sub-section (5), in the second proviso, for the figure “2021”, the figure “2022” shall be substituted;

(9) in section 25, in sub-section (9), after the word “determined” occurring for the second time, the words “using reasonable means” shall be inserted.

(10) in section 25A,—

(a) in sub-section (1),—

(i) after the word “section”, the expression “the Collector of Customs on his own motion or” shall be inserted; and

(ii) for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

“Provided that notwithstanding anything contained in any provision of this Act and any decision or judgment of any forum, authority or court, while determining the customs value under this section, the Director may incorporate values from internationally acclaimed publications, periodicals, bulletins or official websites of manufacturers or indenters of such goods.”;

(b) after sub-section (2), the following new sub-section shall be added, namely:—

“(2A) In case of any conflict in the customs value determined under sub-section (1), the Director General of Valuation shall determine the applicable customs value.”; and

(c) in sub-section (4), after the expression “(1)”, the expression “ ,or the case may be under sub-section (2A)” shall be inserted;

(11) in section 25C, for the word “Board”, the words “respective Chief Collector” shall be substituted;

(12) for section 25D, the following shall be substituted, namely:—

“25D. Review of the value determined.—Notwithstanding the provision contained in section 25A, the Director General Valuation may on his own motion or in pursuance to a review petition made to him within thirty days from the date of determination by any person or an officer of Customs may rescind or determine the value afresh:

Provided that the proceedings so initiated shall be completed within sixty days of the filing of the review petition or initiation of proceedings as the case may be.”;

(13) in section 27A, after the word “owner”, the expression “,to be made before the filing of goods declaration,” shall be inserted;

(14) in section 30, for the first proviso, the following shall be substituted, namely:—

“Provided that, where a goods declaration has been manifested in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the goods declaration is manifested under section 79 or section 104, as the case may be, except for those goods declaration in respect of which the rate of duty change after the submission of the goods declaration and before the berthing or cross-over event of the vessel or the vehicle respectively, as the case may be, the relevant date in which case, for the purposes of this section, shall be the date on which the vessel has berthed or the vehicle has crossed-over the border, as the case may be.”;

(15) in section-32, in sub-section (3A), in first proviso, for the words “one hundred”, the words “twenty thousand” shall be substituted.

(16) in section 32C, in sub-section (1), for the second proviso, the following shall be substituted, namely:—

“Provided further that Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.”;

(17) for section 44, the following shall be substituted, namely:—

“44. Delivery of import manifest in respect of a conveyance other than a vessel.—The person-in-charge of a conveyance other than a vessel shall before arrival or as per following timelines, after arrival thereof at a land customs-station or customs-airport, as the case may be, deliver or file electronically an import manifest to appropriate officer of Customs:

(a) for customs airport: within three hours of landing; and

(b) for land Customs-station: at the time of entry into the country as prescribed under the rules.”;

(18) in section 45,—

(a) 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 before the berthing of the vessel or the cross-over of the vehicle, as the case may be, the person incharge of a conveyance or his duly authorized agent may amend the import manifest subject to the rules notified by the Board.”; and

(b) sub-section (3) shall be omitted;

(19) in section 79, in clause (a), the word “and” at the end, shall be omitted and thereafter, the following new clause shall be added, namely:—

“(aa) the documents mandatory for assessment of the goods, shall be uploaded by the importer or his agent with the goods declaration, as may be prescribed by the Board; and”;

(20) in section 80, 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 further that in case of clearance of goods declaration through green channel, the goods may be examined with the prior approval of the Collector of Customs.”;

(21) in section 82, in clause (c), after colon at the end, the following new proviso shall be added, namely:—

“Provided that Collector of Customs may direct the importer or in case importer is not traceable, the shipping line to re-export out of Pakistan any goods, banned or restricted through a notification issue by the Federal Government, if the same are not cleared or auctioned within sixty days of the date of their arrival:”;

(22) in section 83B, after the word “to”, the word “outright” shall be inserted;

(23) in section 88, for sub-section (5), the following shall be substituted, namely:—

“(5) If the quantity or value of any goods has been incorrectly stated in the goods declaration, due to inadvertence or bona fide error, the Collector of Customs may, for reasons to be recorded in writing, direct the correction of the said error.”;

(24) in section 98, in sub-section (1), for clause (a), the following shall be substituted, namely:—

“(a) by the Collector of Customs, for a period not exceeding six months; and”;

(25) in section 131, in sub-section (2), in the second proviso, the expression “, where Customs Computerized System has not been introduced” shall be omitted;

(26) in section 155F, in clause (c), in the first proviso, for the words “after recording reasons in writing”, the expression “after giving notice and affording reasonable opportunity of being heard,” shall be substituted;

(27) in section 155R, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

“Provided that in case where any clerical or typographical error is noted in goods declaration except as provided in section 29 of this Act, the exporter or importer may apply to the concerned officer not below the rank of Assistant Collector for issuance of correction or corrigendum certificate and the concerned officer upon his satisfaction may issue such certificate for subsequent correction in the computerized goods declaration.”;

(28) in section 156, in sub-section (1), in the Table, in column zero,—

(a) against S.No.1,—

(i) for sub-serial No.(ii), and entries relating thereto in columns (1), (2) and (3), the following shall be substituted, namely:—


If any person, as specified in the rules, contravenes the	such person shall be liab under: -	le to a penalty as	General
requirement of placement of	1^sttime	Rs 50,000/-
invoice and packing list	2^ndtime	Rs 250,000/-
inside the import container or consignment.	3^rdtime and onward for every recurring violation	Rs 500,000/-

(ii) after sub-serial number (ii), amended as aforesaid, the following new serial number and entries thereto in column (1), (2) and (3), shall be inserted, namely:—

“(iii)	If any person fails to attach or electronically upload mandatory documents required under	such person shall under:- 1^sttime	be liable to a penalty as Rs.50,000/- General”;
	section 79 or 131 of the	2^ndtime	Rs.100,000/-
	Customs Act, 1969-,	3^rdtime	Rs.150,000/-
		4^thtime	Rs.200,000/-
		5^thtime and onwards,	Rs.250,000/-,

(b) S.No. 47A, and entries related thereto in column (1), (2) and (3) shall be omitted;

(c) against S.No.89, in the sub-serial number (i), in column (1), after the word “concealing”, the expression “, retailing” shall be inserted; and

(d) against S.No.90, in column (1), after the word concealing, the expression “, retailing” shall be inserted;

(29) in section 157, in sub-section (2), in the proviso, for the full stop a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided further that where a conveyance found carrying smuggled goods in false cavities or being used exclusively or wholly for transportation of offending goods under clause (s) of section 2 of this Act, has been seized for the third time, no option to pay fine in lieu of the confiscation shall be given.”;

(30) in section 179, in sub-section (3), in the second proviso, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

“Provided further that in cases where in goods are lying at sea-port, airport or dryport, these shall be decided within thirty days of the issuance of show cause notice which can be extended by another fifteen days by Collector of Customs, if required so.”.

(31) in section 195, for marginal note and for sub-section (1), the following shall be substituted, namely:—

“195. Powers of Board or Chief Collector or Collector to pass certain orders.—(1) The Board or the Chief Collector or the Collector of Customs may, within his jurisdiction, call for and examine the records of any proceedings under this Act for the purpose of satisfying itself or, as the case may be, himself as to the legality or propriety of any decision or order passed by a subordinate officer:”;

(32) in section 196, in sub-section (1), for the word “Additional”, wherever occurring, the word “Deputy” shall be substituted;

(33) in section 202B, for marginal note and for sub-section (1), the following shall be substituted, namely:—

“202B. Reward to officers and officials of Customs and Law Enforcement Agencies.—(1) In cases involving evasion of customs-duty and other taxes and confiscation of goods, cash reward shall be sanctioned to the officers of Customs Service of Pakistan, as defined under the Occupational Groups and Services (Probation, Training and Seniority) Rules, 1990 and officials including officers and officials of other law enforcement agencies, who assist Customs officers and officials or are actually instrumental in seizure of smuggled goods and vehicles as confirmed by the respective Collectorate of Customs, for their meritorious conduct in such cases, and to the informer providing credible information leading to such confiscation or detection, as may be prescribed by rules by the Board, only after realization of part or whole of the duty and taxes involved in such cases.”;

(34) in section 212B, in sub-section (5), for the words “one year” , the words “three years” shall be substituted;

(35) in the First Schedule,—

(i) in Sub-Chapter-V, in the title, after the word “AREA”, the expression “OR SPECIAL TECHNOLOGY ZONES (STZ) OR AUTHORIZED UNDER EXPORT FACILITATION SCHEMES,” shall be added; and

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

(36) 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 the 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 (2A),—

(i) after the word “nearest”, the words “or most viable” shall be inserted;

(ii) after the word “Islamabad”, the words “or the equivalent value thereof in travel vouchers.” shall be inserted; and

(b) after sub-section (2A), as amended aforesaid, the following new explanation shall be added;

“Explanation.—In this sub-section where the Pakistan International Airlines Corporation (PIAC) does not fly from the concerned member’s constituency, twenty-five business class open return air tickets shall be issued by the PIAC or travel vouchers of equivalent value for issuance of air tickets from another nearest viable Airport. The member may opt for provision of air tickets or travel vouchers.”;

after the expression “sub-section (1)”, the expressions “and (2A)” shall be inserted; and

(d) in sub-section (4), after the expression “sub-section (1)”, the expression “and (2A)” shall be inserted.”

5. Amendments of the Sales Tax Act, 1990.—In the Sales Tax Act, 1990, the following further amendments shall be made, namely:—

(1) in section 2,—

(a) after clause (4A), the following new clause shall be inserted, namely:—

“(4AA) “Commissioner (Appeals)” means Commissioner of Inland Revenue (Appeals) appointed under section 30;”;

(b) in clause (5AB), in sub-clause (d), for the word “three”, the word “ten” shall be substituted;

“(18A) “online market place” includes an electronic interface such as a market place, e-commerce platform, portal or similar means which facilitate sale of goods, including third party sale, in any of the following manner, namely:—

(a) by controlling the terms and conditions of the sale;

(b) authorizing the charge to the customers in respect of the payment for the supply; or

(d) in clause (37), in sub-clause (iii), after the word “falsification”, the word “of” shall be inserted;

(e) in clause (43A),

(i) in sub-clause (e), after the word “more”, the words “or two thousand square feet in area or more in the case of retailer of furniture” shall be inserted;

(ii) after sub-clause (e), the word “and” shall be omitted and thereafter following new clause (f) shall be inserted, namely:—

“(f) a retailer who has acquired point of sale for accepting payment through debit or credit cards from banking companies or any other digital payment service provider authorized by State Bank of Pakistan; and”

(iii) existing sub-clause (f) shall be renumbered as (h); and

(f) in clause (44), in sub-clause (a), the words “or the time when any payment is received by the supplier in respect of that supply, whichever is earlier” shall be omitted;

(2) in section 3,—

(a) in sub-section (1B), in clause (a), for the word “on”, occurring for the second time, the word “or” shall be substituted;

(b) in sub-section (9A), first proviso shall be omitted; and

“(9AA) In respect of goods, specified in the Thirteenth Schedule, the minimum production for a month shall be determined on the basis of a single or more inputs as consumed in the production process as per criterion specified in the Thirteenth Schedule and if minimum production so determined exceeds the actual supplies for the month, such minimum production shall be treated as quantity supplied during the month and the liability to pay tax shall be discharged accordingly.”.

(3) in section 8B,—

(a) in sub-section (1), after the word “person”, the words “other than public limited companies listed on Pakistan Stock Exchange” shall be inserted; and

(b) in sub-section (6), for the expression “15%”, the expression “60%” shall be substituted;”

(4) in section 11, in sub-section (5), for the words “relevant date”, the words “end of the financial year in which the relevant date falls” shall be substituted;

(5) in section 22, in sub-section (1),—

(a) in clause (e), after the word “bills” occurring for second time, the expression “cash book,” shall be inserted; and

(b) after clause (ea), the following new clause (eb) shall be inserted, namely:—

“(eb) Electronic version of records mentioned in clauses (a) to (ea) of this sub-section.”.

(6) in section 25AA, the existing sub-section shall be renumbered as sub-section (1) and thereafter the following new sub-section (2) shall be added, namely:—

“(2) The Board may, by notification in official gazette, prescribe rules for carrying out the purpose of sub-section (1).”;

(7) after omitted section 26A, the following new section 26AB shall be inserted, namely:—

“26AB. Extension of time for furnishing returns.—(1) A registered person required to furnish a return under section 26 may apply, in writing, to the Commissioner for an extension of time to furnish the return.

(2) An application under sub-section (1) shall be made by the due date for furnishing the return in terms of section 2(9) for the period to which the application relates.

(3) Where an application has been made under sub-section (1) and the Commissioner is satisfied that the applicant is unable to furnish the return to which the application relates by the due date because of—

(a) absence from Pakistan;

(b) sickness or other misadventure; or

the Commissioner may, by order in writing, grant the applicant an extension of time for furnishing the return.

(4) An extension of time under sub-section (3) shall not exceed fifteen days from the due date for furnishing the return, unless there are exceptional circumstances justifying a longer extension of time:

Provided that where the Commissioner has not granted extension for furnishing the return under sub-sections (3) or (4), the Chief Commissioner may on an application made by the registered person 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.

(5) An extension or further extension of time granted under sub- sections (3) or (4), as the case may be, shall not, for the purpose of charge of default surcharge under section 34, change the due date for payment of sales tax under section 6.”;

(8) In section 40D, in sub-section (5), after the expression “Gilgit- Baltistan,”, the words “Border Sustenance Markets and” shall be inserted;

(9) after section 40D, the following new section 40E shall be inserted, namely:—

“40E. Licensing of brand name.—(1) Manufacturers of the specified goods shall be required to obtain brand licence for each brand or stock keeping unit (SKU) in such manner as may be prescribed by the Board.

(2) Any specified brand and SKU found to be sold without obtaining a licence from the Board shall be deemed counterfeit goods and liable to outright confiscation and destruction in the prescribed manner and such destruction and confiscation shall be without prejudice to any other penal action which may be taken under this Act.”;

(10) in section 48, after sub-section (2), the following new sub-section

(3) shall be added, namely:—

“(3) The provision of sub-sections (1) and (2) shall mutatis mutandis apply regarding assistance in collection and recovery of taxes in pursuance of a request from a foreign jurisdiction under a tax treaty, bilateral or a multilateral

convention, and inter-governmental agreement or similar agreement or mechanism.”;

(11) in section 50, in sub-section (2), after the word “price”, the words “or may be placed regularly on the official website maintained by the Board” shall be inserted;

(12) in section 56A,—

(i) in the title, after the word “information”, the words “or assistance in recovery of taxes” shall be inserted;

(ii) after sub-section (1), the following new sub-section (1A) shall be inserted, namely:–

“(1A) Notwithstanding anything contained in this Act, the Board shall have power to share data or information including real time data videos, images received under the provisions of this Act with any other Ministry or Division of the Federal Government or Provincial Government, subject to such limitations and conditions an may be specified by the Board.”; and

(iii) after sub-section (2), the following new sub-section (3) shall be added, namely:—

“(3) The Federal Government may enter into bilateral or multilateral convention, and inter-governmental agreement or similar agreement or mechanism for assistance in the recovery of taxes.”;

(13) in section 56C, the existing sub-section shall be renumbered as sub-section (1) and thereafter the following new sub-section shall be added, namely:—

“(2) The Board may prescribe procedure for “mystery shopping” in respect of invoices issued by tier-1 retailers integrated with FBR online system randomly and in case of any discrepancy, all the relevant provisions of this Act shall apply accordingly.”;

(14) in section 67, in first proviso at the end for full stop at the end a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided further that where a refund due in the consequence of any order passed under section 66 is not made within forty five days of date of such order, there shall be paid to the claimant in addition to the amount of the refund due to him, a further sum equal to KIBOR per annum of the amount of refund, due from the date of the refund order.”;

(15) in section 73, in sub-section (1), after the first proviso, the following new proviso shall be added, namely:—

“Provided further that adjustments made by a registered person in respect of amounts payable and receivable to and from the same party shall be treated as payments satisfying the provisions of this sub-section subject to following conditions, namely:—

(a) sales tax has been charged and paid by both parties under the relevant provisions of this Act and rules prescribed thereunder, wherever applicable; and

(b) the registered person has sought prior approval of the Commissioner before making such adjustments.”;

(16) in section 76, the existing sub-section shall be renumbered as sub- section (1) and thereafter the following new sub-section (2) shall be added, namely:—

“(2) The Board may authorize and prescribe the manner in which fee and service charges collected under sub-section (1) shall be expended.”;

(17) in the Third Schedule, in column (1), after serial number 49, the following new serial number 50 and entries relating thereto in columns (2) and (3) shall be added, namely:—

“50.

Sugar except where it is supplied as an industrial raw material to pharmaceutical, beverage and confectionery industries

Respective heading”;

(18) in the Fifth Schedule, in the Table, in column (1),—

(a) Serial No. 1, 6, 10 and 11 and entries relating thereto in column (2) shall be omitted; and

(b) in the Fifth Schedule, after S. No. 14, in column (1) and entries relating thereto in column (2), the following new

S. No. 15 shall be added, namely:—

“15.	Local supplies of raw materials, components, parts and plant and machinery to registered exporters authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions.”;
16.	Milk (PCT heading 04.01).
17.	Fat filled milk excluding that sold in retail packing under a brand name or a trademark (PCT heading 1901.9090).
18.	(i) Supply, repair or maintenance of any ship which is neither; (a) a ship of gross tonnage of less than 15 LDT; nor (b) a ship designed or adapted for use for recreation or pleasure. (ii) Supply of spare parts and equipment for ships falling under (i) above. (iii) Supply of equipment and machinery for salvage or towage services. (iv) Supply of equipment and machinery for other services provided for the handling of ships in a port.”

(19) in the Sixth Schedule,—

(a) in Table-1, in column (1),—

(i) Serial No. 22, 24, 26, 27, 29, 29C, 73, 73A, 74, 75, 76,

77, 78, 79, 80, 82, 83, 85, 91, 93, 101, 103, 106, 108,

115, 123, 124, 125, 128 and 153 and entries relating thereto in columns (2) and (3) shall be omitted;

(ia) against S. No. 19, for the entry in column (2), the expression “cereals and products of milling industry” shall be substituted;

(ii) against S. No. 133, in columns (2) and (3), the following new entries shall be added, namely:—

	White spirit	2710.1240
	Solvent oil	2710.1250.”

(iii) in serial No. 137,—

(a) in column (2), after expression “g/m²”, the words “, art paper and printing paper” shall be inserted; and

(b) in column (3), after the figure “4802.5510”, the expression “,4810.1990, 4810.1910 and 4802.6990” shall be inserted;

(iv) after serial No. 156 and entries relating thereto in columns (2) and (3), the following new serial Nos. shall be added, namely:—

“157.	Import of CKD (in kit form) of following electric vehicles (4 wheelers) by local manufacturers till 30^thJune, 2026: (i) Small cars/SUVs with 50 Kwh battery or below; and (ii) Light commercial vehicles (LCVs) with 150 kwh battery or below	Respective headings
158.	Goods temporarily imported into Pakistan by International Athletes which shall be subsequently taken by them within 120 days of temporary import	Respective headings
159.	Import of auto disable Syringes till 30th June, 2021 (i) with needles (ii) without needles	9018.3110 9018.3120
160.	Import of following raw materials for the manufacturers of auto disable syringes till 30th June, 2021 (i) Tubular metal needles (ii) Rubber Gaskets	9018.3200 4016.9310
161.	Import of plant, machinery, equipment and raw materials for consumption of these items within Special Technology Zone by the Special Technology Zone Authority, zone developers and zone enterprises	Respective headings
162.	Import of raw materials, components, parts and plant and machinery by registered persons authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions.”;	Respective headings

(b) in Table-2, in column (1),—

(i) serial Nos. 17, 18, 19, 20, 24 and 25 and entries relating thereto in columns (2) and (3) shall be omitted;

(ii) after serial number 25, the following new serial numbers and entries relating thereto in columns (2) and (3) shall be added, namely:—

“26.	Supply of locally produced silos till 30.06.2026	Respective heading
27.	Wheat Bran	2302.3000
28.	Sugar beet	1212.9100
29.	Fruit juices, whether fresh, frozen or otherwise preserved but excluding those bottled, canned or packaged.	2009.1100, 2009.1200, 2009.1900, 2009.2100, 2009.2900, 2009.3100, 2009.3900, 2009.4100, 2009.4900, 2009.5000, 2009.6100, 2009.6900, 2009.7100, 2009.7900, and 2009.9000
30.	Milk and cream, concentrated or containing added sugar or other sweetening matter, excluding that sold in retail packing under a brand name	04.02
31.	Flavored milk, excluding that sold in retail packing under a brand name	0402.9900
32.	Yogurt, excluding that sold in retail packing under a brand name	0403.1000
33.	Whey, excluding that sold in retail packing under a brand name	04.04
34.	Butter, excluding that sold in retail packing under a brand name	0405.1000
35.	Desi ghee, excluding that sold in retail packing under a brand name	0405.9000
36.	Cheese, excluding that sold in retail packing under a brand name	0406.1010
37.	Processed cheese not grated or powdered, excluding that sold in retail packing under a brand name	0406.3000
38.	Sausages and similar products of poultry meat or meat offal excluding sold in retail packing under a brand name or trademark	1601.0000
39.	Products of meat or meat offal excluding sold in retail packing under a brand name or trademark	1602.3200, 1602.3900, 1602.5000, 1604.1100, 1604.1200, 1604.1300, 1604.1400, 1604.1500, 1604.1600, 1604.1900, 1604.2010, 1604.2020 and 1604.2090.”.

(c) in Table-3, in column (1), after S. No. 20 and entries relating thereto in columns (2), (3) and (4), the following new S. No. 21 shall be added, namely:—

“21.

Import of POS machines

8470.2900,

8470.9000

POS machines imported for installation on retail outlets as are integrated with the Board’s computerized system for real-time reporting of sales.”.

(d) after Table-3, the following new Table shall be added, namely:—

“Table-4

The goods specified in column (2) of the Annexure below falling under the PCT codes specified in column (3) of the said Annexure, when supplied within the limits of the Border Sustenance Markets, established in cooperation with Iran and Afghanistan, shall be exempted from the whole of the sales tax, subject to the following conditions, namely:—

(i) Such goods shall be supplied only within the limits of Border Sustenance Markets established in cooperation with Iran and Afghanistan;

(ii) If the goods, on which exemption under this Table has been availed, are brought outside the limits of such markets, sales tax shall be charged on the value assessed on the goods declaration import or the fair market value, whichever is higher;

(iii) Such items in case of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of sales tax involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction;

(iv) The said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets; and

(v) Breach of any of the conditions specified herein shall attract relevant legal provisions of this Act, besides recovery of the amount of sales tax alongwith default surcharge and penalties involved.

Annexure

S.No (1)	Description (2)	Heading Nos of the First Schedule to the Customs Act, 1969 (IV of 1969) (3)
1	Seed (Potatoes)	0701.1000
2	Tomatoes, fresh or chilled	0702.0000
3	Onions and shallots	0703.1000
4	Garlic	0703.2000
5	Cauliflowers cabbage	0704.9000
6	Carrots and turnips	0706.1000
7	Cucumbers and gherkins fresh or chilled	0707.0000
8	Peas (pisum sativum)	0708.1000
9	Beans (vigna spp., phaseolus spp.)	0708.2000
10	other leguminous vegetables	0708.9000
11	Peas (Pisum sativum)	0713.1000
12	Grams (Dry/Whole)	0713.2010
13	Dried leguminous vegetables	0713.2090, 0713.9090
14	Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) Wilczek	0713.3100
15	Small red (Adzuki) beans (Phaseolus or Vigna angularis)	0713.3200
16	Kidney beans including white beans	0713.3300
17	Bambara – vigna subteranea or vaahdzeia subterrea	0713.3400
18	Beans vigna unguiculata	0713.3500
19	Other	0713.3990
20	Lentils (Dry/Whole)	0713.4010
21	Broad beans (Vicia faba var. major) and horse beans (Vicia faba var. equina, Vicia faba var. minor)	0713.5000
22	Pigeon peas (cajanus cajan)	0713.6000
23	Vanilla (Neither crushed nor ground)	0905.1000
24	Cinnamon	0906.1100
25	Other (Cinnamon And Cinnamon Tree Flowers)	0906.1900
26	Neither crushed nor ground (Cloves)	0907.1000
27	Crushed or ground (Cloves)	0907.2000
28	Neither Crushed nor ground (Nutmeg)	0908.1100
29	Crushed or ground (Nutmeg)	0908.1200
30	Neither crushed nor ground (Maze)	0908.2100
31	Crushed or ground (Maze)	0908.2200
32	Large (Cardammoms)	0908.3110
33	Small (Cardammoms)	0908.3120
34	Crushed or ground (Cardammoms)	0908.3200
35	Neither crushed nor ground (Coriander)	0909.2100
36	Crushed or ground (Coriander)	0909.2200
37	Neither crushed nor ground (Seeds of Cumins)	0909.3100
38	Crushed or ground (Seeds of Cumins)	0909.3200
39	Neither crushed nor ground (Seeds of Anise, Badian, Caraway, Fennel etc)	0909.6100
40	Crushed or ground (Seeds of Anise, Badian, Caraway, Fennel etc)	0909.6200


(1)	(2)	(3)
41	Thyme; bay leaves	0910.9910
42	Barley (Seeds)	1003.1000, 1003.9000
43	Sunflower seeds ,whether or not broken	1206.0000
44	Locust beans	1212.9200
45	Cereal straws and husks	1213.0000
46	Knives and cutting blades for paper and paper board	8208.9010
47	Of a fat content, by weight, not exceeding 1 % (milk and cream)	0401.1000
48	Of a fat content, by weight, exceeding 1 % but not exceeding 6 % (milk and cream)	0401.2000
49	Of a fat content, by weight, exceeding 6 % but not exceeding 10% (Milk and Cream)	0401.4000
50	Of a fat content, by weight, exceeding 10 % (Milk and Cream)	0401.5000
51	Leeks and other alliaceous vegetables	0703.9000
52	Cauliflowers and headed broccoli	0704.1000
53	Brussels sprouts	0704.2000
54	Cabbage lettuce (head lettuce)	0705.1100
55	Lettuce	0705.1900
56	Chicory	0705.2100, 0705.2900
57	Fruits of the genus Capsicum or of the genus Pimenta	0709.6000
58	Figs	0804.2000
59	Fresh (grapes)	0806.1000
60	Dried (Grapes)	0806.2000
61	Melons	0807.1100, 0807.1900
62	Apples	0808.1000
63	Green Tea	0902.1000
64	Other Green Tea	0902.2000
65	Crushed or ground (Ginger)	0910.1200
66	Turmeric (curcuma)	0910.3000
67	Other (spice)	0910.9990
68	Lactose (Sugar )	1702.1110
69	Sugar Syrup	1702.1120
70	Sugar Other	1702.1900
71	Caramel	1702.9020
72	Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya bean oil.	2304.0000
73	Other (animal feed)	2309.9000
74	For Sewing (Thread)	5204.2010
75	For embroidery (Thread)	5204.2020
76	Spades and shovels	8201.1000
77	Tools for masons, watchmakers, miners and hand tools nes	8205.5900
78	For kitchen appliances or for machines used by the food industry	8208.3000
79	Other kitchen appliances	8208.9090
80	Yogurt	0403.1000
81	Other (Potatoes)	0701.9000
82	Sweet corn	0710.4000


(1)	(2)	(3)
83	Mixtures of vegetables	0710.9000
84	Fresh (Dates)	0804.1010
85	Dried (Dates)	0804.1020
86	Apricots	0809.1000
87	Sour cherries (Prunus cerasus)	0809.2100
88	Other (Apricots)	0809.2900
89	Peaches, including nectarines	0809.3000
90	Plums and sloes	0809.4000
91	Strawberries	0810.1000
92	Kiwi Fruit	0810.5000
93	Neither crushed nor ground (Ginger)	0910.1100
94	Wheat and Meslin(Other)	1001.1900
95	Wheat and Meslin (Other )	1001.9900
96	Of Wheat (Flour)	1101.0010
97	Of Meslin	1101.0020
98	Vermacelli	1902.1920
99	Other (Packed Cake)	1905.9000
100	Homogenised perparations	2007.1000
101	Citrus Fruit	2007.9100
102	Other (jams)	2007.9900
103	Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap	3401.3000
104	Preparations put up for retail sale	3402.2000
105	Other (washing preparations)	3402.2000
106	Tableware and kitchenware of porcelain or china	6911.1090
107	Household articles nes & toilet articles of porcelain or china	6911.9000
108	Glassware for table or kitchen purposes (excl. glass having a linear c	7013.4900
109	Glassware nes (other than that of 70.10 or 70.18)	7013.9900
110	Spoons	8215.9910
111	Tableware articles not in sets and not plated with precious metal	8215.9990
112	Bicycles and other cycles (including delivery tricycles), not motorised	8712.0000
113	Vacuum flasks	9617.0010
114	Vacuum flasks/vacuum vessels complete w/cases; parts o/t glass inners (others)	9617.0020.”;

(20) in the Eighth Schedule, in Table-1, in column (1),—

(a) S. No. 1, 5, 19, 22, 50, 51, 65 and 67 and entries relating thereto in columns (2), (3), (4) and (5) shall be omitted;

(b) against S. No. 15, in column (3), the expression “2302.3000 (Wheat Bran)” shall be omitted;

(i) in column (4), for the figure “80”, the figure “90” shall be substituted; and

(ii) in column (5), for the figure “70”, the figure “90” shall be substituted;

(d) against S. No. 63, in Column No. (4), for the expression “0.5%”, the expression “2%” shall be substituted; and

(e) against S. No. 66, in column (1), in column (4), for the figure “12”, the figure “10” shall be substituted;

(f) after serial number 70, the following new Serial Nos. and entries relating thereto in columns (2), (3), (4) and (5) shall be added, namely:—

“71.	Following locally manufactured or assembled electric vehicles (4 wheelers) till 30^thJune, 2026: (i) Small cars/ SUVs with 50 Kwh battery or below; and (ii) Light commercial vehicles (LCVs) with 150 kwh battery or below	Respective heading	1%	If supplied locally
72.	Motorcars	87.03	12.5%	Locally manufactured or assembled motorcars of cylinder capacity upto 1000cc
73.	Import and local supply of Hybrid Electric Vehicles: (a) Upto 1800 cc (b) From 1801 cc to 2500 cc	87.03 87.03	8.5%. 12.75%;
74.	Goods supplied from tax-exempt areas of erstwhile FATA/PATA to the taxable areas	Respective headings	16%.”

(21) in the Ninth Schedule, after Table-I, the following proviso and explanation shall be added, namely:—

“Provided that the provisions of Table-I shall not be applicable from 1st July, 2020 onwards.

Explanation.—For removal of doubt, it is clarified that the above amendment in law shall not prejudicially affect, the Board’s stance or position in pending cases on the issue of chargeability of sales tax on SIM cards before any court of law.”;

(22) in the Eleventh Schedule, in the Table, after S. No. 6, in column (1), the following new S. Nos. and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely:—

“7.

Registered persons manufacturing lead batteries

Persons supplying any kind of lead under chapter 78 (PCT Headings: 7801.1000,

7801.9100, 7801.9900, 7802.0000, 78.03,

7804.1100, 7804.1900, 7804.2000, 78.05,

7806.0010, 7806.0020, 7806.0090) or

scrap batteries under chapter 85 (PCT Headings: 8548.1010, 8548.1090)

75% of the sales tax applicable”.

Online market place

Persons other than active taxpayers

2% of gross value of supplies:

Provided that the provisions of this entry shall be effective from the date as notified by the Board.”.

(23) in the Twelfth Schedule, in clause (2), after sub-clause (x), under Procedure and conditions, the following new clauses shall be added, namely:—

“(xi) Electric vehicles (4 wheelers) CKD kits for small cars/SUVs, with 50 kwh battery or below and LCVs with 150 kwh battery of below till 30th June, 2026;

(xii) Electric vehicles (4 wheelers) small cars/SUVs, with 50 kwh battery or below and LCVs with 150 kwh battery of below in CBU condition till 30th June, 2026”;

(xiii) Electric vehicles (2-3 wheelers and heavy commercial vehicles) in CBU condition till 30th June, 2025; and

(xiv) motor cars of cylinder capacity upto 850cc

(24) after the Twelfth Schedule, the following new Schedule shall be added; namely:

“THIRTEENTH SCHEDULE”

(Minimum Production)

[See sub-section (9AA) of section 3]

Minimum production of steel products.—

The minimum production for steel products shall be determined as per criterion specified against each in the Table below:

Table

S. No.	Product	Production criteria
(1)	(2)	(3)
1.	Steel billets and ingots	One metric ton per 700 kwh of electricity consumed
2.	Steel bars and other re- rolled long profiles of steel	One metric ton per 110 kwh of electricity consumed
3.	Ship plates and other re- rollable scrap	85% of the weight of the vessel imported for breaking”; and

Procedure and conditions:—

(i) both actual and minimum production and the local supplies shall be declared in the monthly return. In case, the minimum production exceeds actual supplies for the month, the liability to pay tax shall be discharged on the basis of minimum production:

Provided that in case, in a subsequent month, the actual supplies exceed the minimum production, the registered person shall be entitled to get adjustment of excess tax on account of excess of minimum production over actual supplies:

Provided further that in a full year, as per financial year of the company or registered person, or period starting from July to June of next year, in other cases, the tax actually paid shall not be less than the liability determined on the basis of minimum production for that year and in case of excess payment no refund shall be admissible:

Provided also that in case of ship-breaking, the liability against minimum production, or actual supplies, whichever is higher, shall be deposited on monthly basis on proportionate basis depending upon the time required to break the vessel;

(ii) the payment of tax on ship plates in aforesaid manner does not absolve ship breakers of any tax liability in respect of items other than ship plates obtained by ship-breaking;

(iii) the melters and re-rollers employing self-generated power shall install a tamperproof meter for measuring their consumption. Such meter shall be duly locked in room with keys in the custody of a nominee of the Commissioner Inland Revenue having jurisdiction.

The officers Inland Revenue having jurisdiction shall have full access to such meter;

(iv) the minimum production of industrial units employing both distributed power and self-generated power shall be determined on the basis of total electricity consumption.

6. Islamabad Capital Territory (Tax on Services) Ordinance, 2001.—(1) in section 3, after sub-section (1), the following new sub-section (1A) shall be inserted, namely:–

“(1A) Notwithstanding the provision of sub-section (1), the export of services shall be charged at the rate of zero per cent.”

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

(1) in section 2,—

(a) in clause (1B), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(b) after clause (10), the following new clause shall be inserted, namely:—

“(10A) “business bank account” means a bank account utilized by the taxpayer for business transaction declared to the Commissioner through original or modified registration form prescribed under section 181;”;

(c) clause (13AA) shall be re-numbered as clause (13AB) and after clause (13A), the following new clause shall be inserted, namely:—

“(13AA) concealment of income includes—

(a) the suppression of any item of receipt liable to tax in whole or in part, or failure to disclose income chargeable to tax;

(b) claiming any deduction or any expenditure not actually incurred;

(d) claiming of any income or receipt as exempt which is otherwise taxable.

Explanation.—For removal of doubt it is clarified that none of the aforementioned acts would constitute concealment of income unless it is proved that taxpayer has knowingly and willfully committed these acts;”;

(d) in clause (19), in sub-clause (e), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(e) in clause (24), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(f) in clause (29), the expression “233A,” shall be omitted;

(g) in clause (29C),—

(a) in sub-clause (ab), after semi colon at the end, the word “and” shall be added;

(b) sub-clause (b) shall be omitted; and

“(c) telecommunication companies operating under the license of Pakistan Telecommunication Authority (PTA).”;

(h) after clause (30AC), the following new clauses shall be inserted, namely:—

“(30AD) Information Technology (IT) services include software development, software maintenance, system integration, web design, web development, web hosting and network design; and

(30AE) IT enabled services include inbound or outbound call centres, medical transcription, remote monitoring, graphics design, accounting services, Human Resource (HR) services, telemedicine centers, data entry operations, cloud computing services, data storage services, locally produced television programs and insurance claims processing;”;

(i) in clause (35AA), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(j) in clause (42A), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(k) in clause (59A), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(l) clause (59A) shall be re-numbered as clause (59AB) and after clause (59), the following new clause (59A) shall be inserted, namely:—

“(59A) “small and medium enterprise” means a person who is engaged in manufacturing as defined in clause (iv) of sub-section (7) of section 153 of the Ordinance and his business turnover in a tax year does not exceed two hundred and fifty million rupees:

Provided that if annual business turnover of a small and medium enterprise exceeds two hundred and fifty million rupees, it shall not qualify as small and medium enterprise in the tax year in which annual turnover exceeds that turnover or any subsequent tax year.

(m) in clause (59AB), re-numbered as aforesaid,—

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

(ii) in clause (iii), after the semi colon, the word “and” shall be added;

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

“(iv) is not a small and medium enterprise as defined in clause (59A).;

(n) in clause (62A), in sub-clause (ii), for the words “Federal Government”, the expression “Board with the approval of Federal Minister-in-charge” shall be substituted;

(2) in section 7B, in sub-section (3), in clause (b), for the words “thirty six”, the word “five” shall be substituted;

(3) in section 8, in the marginal note, for the expression “5, 6 and 7”, the expression “5, 5AA, 6, 7, 7A and 7B “ shall be substituted;

(4) in section 12, in sub-section (2), after clause (c), the following explanation shall be added, namely:—

“Explanation.—For removal of doubt, it is clarified that the allowance solely expended in the performance of employee’s duty does not include —

(i) allowance which is paid in monthly salary on fixed basis or percentage of salary; or

(ii) allowance which is not wholly, exclusively, necessarily or actually spent on behalf of the employer;”;

(5) in section 15, sub-sections (6) and (7) shall be omitted;

(6) in section 15A,—

(a) in sub section (1), for the word “company”, wherever occurring, the word “person” shall be substituted; and

(b) sub-section (7) shall be omitted;

(7) in section 18, in sub-section (1), in clause (b), for the semi colon at the end, the full stop shall be substituted and thereafter the following explanation shall be added, namely:–

“Explanation.—For the removal of doubt, it is clarified that income derived by co-operative societies from the sale of goods, immoveable property or provision of services to its members is and

has always been chargeable to tax under the provisions of this Ordinance;”;

(8) in section 20, in sub-section (1A), after the expression “purposes,”, occurring for the second time, the words “a deduction shall be allowed equal to”, shall be inserted;

(9) section 23A shall be omitted;

(10) in section 31, in sub-section (1), for the expression “section 120 of the Companies Ordinance, 1984 (XLVII of 1984)”, the expression “section 66 of the Companies Act, 2017 (XIX of 2017)” shall be substituted;

(11) in section 37,—

(a) in sub-section (1A), the expression “and 3B” shall be omitted;

(b) in sub-section (3), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted; and

(c) in sub-section (4A), in clause (d), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

“Provided that, if the capital asset acquired through gift is disposed of within two years of acquisition and the Commissioner is satisfied that such gift arrangement is a part of tax avoidance scheme, then the provisions of sub-section

(3) of section 79 shall apply for the purpose of determining the cost of asset in the hands of recipient of the gift.”;

(12) in section 37A,—

(a) in sub-section (3), after the word “ debt securities”, the expression “, unit of exchange traded fund”, shall be inserted;

(b) after sub-section (5), the following new sub-section shall be added, namely:—

“(6) To carry out purpose of this section, the Board may prescribe rules.”;

(13) in section 39,—

(a) in sub-section (1), in clause (la), for the expression “ grandparents, parents, spouse, brother, sister, son or a daughter” , the expression “relative as defined in sub-section

(5) of section 85” shall be substituted.”; and

(b) in sub-section (5), for the expression “5, 6 or 7”, the expression “5, 5AA, 6, 7 or 7B”, shall be substituted;

(14) in section 53, in sub-section (2), for the words “Federal Government may”, the words “Board with the approval of the Federal Minister-in-charge may, from time to time, pursuant to the approval of the Economic Coordination Committee of the Cabinet” shall be substituted.

(15) in section 56, in sub-section (1), after the word “salary”, the words “or income from property” shall be omitted;

(16) in section 57,—

(a) in sub-section (4), the expression “23A” shall be omitted; and

(b) in sub-section (5), the expression “23A” shall be omitted;

(17) in section 59AA,—

(i) in sub-section (1) for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(ii) in sub-section (3), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(18) in section 59B,—

(a) in sub-section (1), for the word “of” occurring for the first time , the word “or” shall be substituted; and

(b) in sub-section (2), in clause (d), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(19) in section 60A,—

(a) after the expression “(XXXVI of 1971)”, the expression “or under any law relating to the Workers’ Welfare Fund enacted by Provinces after the eighteenth Constitutional amendment Act, 2010" shall be added; and

(b) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided that this section shall not apply in respect of any amount of Workers’ Welfare Fund paid to the Provinces by a trans-provincial establishment.”;

(20) in section 60B,

(a) after the expression “(XII of 1968)”, the expression “or under any law relating to the Workers’ Profit Participation Fund enacted by Provinces after the eighteenth Constitutional amendment Act, 2010" shall be added; and

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

“Provided that this section shall not apply in respect of any amount of Workers’ Profit Participation Fund paid to the province by a trans-provincial establishment.”;

(21) in section 61,—

(a) in sub-section (1),—

(i) after the word “donation”, the expression “, voluntary contribution or subscription” shall be inserted;

(ii) in clause (c), for the full stop at the end, the expression “or any person eligible for tax credit under section 100C of this Ordinance; or” shall be substituted; and

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

“(d) entities, organizations and funds mentioned in the Thirteenth Schedule to this Ordinance.”

(22) in section 62, in sub-section (1), in clause (ia), the word “or” at the end shall be omitted and thereafter the following new clause shall be inserted, namely:—

“(ib) in respect of cost of acquiring in the tax year, unit of exchange traded fund offered to public and traded on stock exchange in Pakistan ; or “;

(23) in section 64B, in sub-section (3), in clause (c), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(24) section 64C shall be omitted;

(25) after section 64C, omitted as aforesaid, the following new section shall be inserted, namely:—

“64D. Tax credit for point of sale machine.—(1) Any person who is required to integrate with Board’s computerized system for real time reporting of sale or receipt, shall be entitled to tax credit in respect of the amount invested in purchase of point of sale machine.

(2) The amount of tax credit allowed under sub-section (1) for a tax year in which point of sale machine is installed, integrated and configured with the Board’s computerized system shall be lesser of—

(a) amount actually invested in purchase of point of sale machine; or

(b) rupees one hundred and fifty thousand per machine.

(3) For the purpose of this section, the term point of sale machine means a machine meant for processing and recording the sale transactions for goods or services, either in cash or through credit and debit cards or online payments in an internet enabled environment.”;

(26) sections 65C and 65D shall be omitted;

(27) after section 65E, the following new sections shall be inserted, namely:—

“65F. Tax credit for certain persons.—(1) Following persons or incomes shall be allowed a tax credit equal to one hundred per cent of the tax payable under any provisions of this Ordinance including minimum, alternate corporate tax and final taxes for the period, to the extent, upon fulfillment of conditions and subject to limitations detailed as under:—

(a) persons engaged in coal mining projects in Sindh supplying coal exclusively to power generation projects;

(b) a startup as defined in clause (62A) of section 2 for the tax year in which the startup is certified by the Pakistan Software Export Board and the next following two tax years; and

(c) Income from exports of computer software or IT services or IT enabled services as defined in clause (30AD) and (30AE) of section 2 upto the period ending on the 30th day of June, 2025:

Provided that eighty percent of the export proceeds is brought into Pakistan in foreign exchange remitted from outside Pakistan through normal banking channels.

(2) The tax credit under sub-section (1) shall be available subject to fulfillment of the following conditions, where applicable, namely:—

(a) return has been filed ;

(b) withholding tax statements for the relevant tax year have been filed in respect of those provisions of the Ordinance, where the person is a withholding agent; and

(c) sales tax returns for the tax periods corresponding to relevant tax year have been filed if the person is required to file Sales Tax Return under any of the Federal or Provincial sales tax laws.

65G. Tax credit for specified industrial undertakings.—(1) When making certain eligible capital investments as specified in sub-section (2), the eligible taxpayers defined in sub- section (3) shall be allowed to take an investment tax credit of twenty five percent of the eligible investment amount, against tax payable under the provisions of this Ordinance including

minimum and final taxes. The tax credit not fully adjusted during the year of investment shall be carried forward to the subsequent tax year subject to the condition that it may be carried forward for a period not exceeding two years.

(2) For the purposes of this section, the eligible investment means investment made in purchase and installation of new machinery, buildings, equipment, hardware and software, except self-created software and used capital goods.

(3) For the purpose of this section, eligible person means—

(a) green field industrial undertaking as defined in clause (27A) of section 2 engaged in—

(i) the manufacture of goods or materials or the subjection of goods or materials to any process which substantially changes their original condition; or

(ii) ship building:

Provided that the person incorporated between the 30th day of June, 2019 and the 30th day of June, 2024 and the person is not formed by the splitting up or reconstitution of an undertaking already in existence or by transfer of machinery, plant or building from an undertaking established in Pakistan prior to the commencement of new business and is not part of an expansion project; and

(b) an industrial undertaking set up by the 30th day of June 2023 and engaged in the manufacture of plant, machinery, equipment and items with dedicated use (no multiple uses) for generation of renewable energy from sources like solar and wind, for a period of five years beginning from the date such industrial undertaking is set up.”;

(28) in section 79, in sub-section (2), after the word “acquisition”, the expression “ in respect of disposal of an asset as mentioned in clauses (d), (e) and (f) of sub-section (1)” shall be substituted;

(29) in section 80, in sub-section (2), in clause (b), in para (i), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(30) in section 82, clause (ab) shall be omitted;

(31) in section 99B, for the words “Federal Government”, the expression “Board with the approval of the Minister-in-charge” shall be substituted;

(32) in section 99C, for the words “Federal Government”, wherever occurring, the expression “Board with the approval of the Minister- in-charge” shall be substituted;

(33) in section 100, in sub-section (3), for the words “Federal Government”, the expression “Board with the approval of the Minister-in-charge’’ shall be substituted;

(34) for section 100C, the following shall be substituted, namely:—

“100C. Tax credit for charitable organizations.—(1) The persons mentioned in sub-section (2) shall be allowed a tax credit equal to one hundred percent of tax payable under any of the provisions of this Ordinance including minimum and final taxes in respect of incomes mentioned in sub-section (3) subject to the conditions and limitations laid down in sub- section (4).

(2) The provisions of this section shall apply to the following persons, namely:—

(a) persons specified in Table - II of clause (66) of Part I of the Second Schedule to this Ordinance;

(b) a trust administered under a scheme approved by the Federal Government and established in Pakistan exclusively for the purposes of carrying out such activities as are for the welfare of ex-employees and serving personnel of the Federal Government or a Provincial Government or armed forces including civilian employees of armed forces and their dependents where the said trust is administered by a committee nominated by the Federal Government or a Provincial Government;

(d) a welfare institution registered with Provincial or Islamabad Capital Territory (ICT) social welfare department;

(e) a not for profit company registered with the Securities and Exchange Commission of Pakistan under section 42 of the Companies Act, 2017;

(f) a welfare society registered under the provincial or Islamabad Capital Territory (ICT) laws related to registration of co-operative societies;

(g) a waqf registered under Mussalman Waqf Validating Act, 1913 (VI of 1913) or any other law for the time being in force or in the instrument relating to the trust or the institution;

(h) a university or education institutions being run by non- profit organization existing solely for educational purposes and not for the purposes of profit;

(i) a religious or charitable institution for the benefit of public registered under any law for the time being in force; and

(j) international non-governmental organizations (INGOs) approved by the Federal Government.

(3) The following income is eligible for tax credit, namely:—

(a) income from donations, voluntary contributions and subscriptions;

(b) income from house property;

(d) profit on debt from scheduled banks and microfinance banks;

(e) grant received from Federal, Provincial, Local or foreign Government;

(f) so much of the income chargeable under the head “income from business” as is expended in Pakistan for the purposes of carrying out welfare activities:

Provided that in the case of income under the head “income from business”, only so much of such income shall be eligible for tax credit under this section that bears the same proportion as the said amount of business income bears to the aggregate of income from all sources; and

(g) any income of the persons mentioned in clauses (a), (b) and (h) of sub-section (2) of this section.

(4) Eligibility for tax credit shall be subject to the following conditions, namely:—

(a) return has been filed;

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

(d) the administrative and management expenditure does not exceed 15% of the total receipts:

Provided that clause (d) shall not apply to a non- profit organization, if—

(i) charitable and welfare activities of the non-profit organization have commenced for the first time within last three years; or

(ii) total receipts of the non-profit organization during the tax year are less than one hundred million Rupees;

(e) approval of Commissioner has been obtained as per requirement of clause (36) of section 2:

Provided that the condition of approval in respect of persons mentioned in Table-II of clause (66) of Part I of the Second Schedule to this Ordinance, shall take

effect from the first day of July, 2022 and the requirements of clause (36) of section 2, shall not be applicable for earlier years;

(f) none of the assets of trusts or welfare institutions confers, or may confer, a private benefit to the donors or family, children or author of the trust or his descendants or the maker of the institution or to any other person:

Provided that where such private benefit is conferred, the amount of such benefit shall be added to the income of the donor; and

(g) a statement of voluntary contributions and donations received in the immediately preceding tax year has been filed in the prescribed form and manner.

(5) Notwithstanding anything contained in sub-section (1), surplus funds of organizations to which this section applies shall be taxed at a rate of ten percent.

(6) For the purpose of sub-section (5), surplus funds mean funds or monies—

(a) not spent on charitable and welfare activities during the tax year;

(b) received during the tax year as donations, voluntary contributions, subscriptions and other incomes;

(c) which are more than twenty-five percent of the total receipts of the non-profit organization received during the tax year; and

(d) are not part of restricted funds.

Explanation.—For the purpose of this clause, “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 or funds received in kind.”;

(35) in section 100D,—

(a) for the expression “30th day of September, 2022”, wherever occurring except for clause (a) of sub-section (4), the

expression “30th day of September, 2023” shall be substituted;

(b) in sub-section (1), in clause (b), in the proviso, after the figure “2019”, the expression “or tax year 2020, as the case may be” shall be inserted;

(i) for the expression “31st day of December, 2020”, wherever occurring, the expression “30th day of June, 2021” shall be substituted; and

(ii) in clause (c), after the word “portal”, the expression “by 30th day of June, 2021” shall be added;

(d) in sub-section (4),—

(i) in clause (a), for the expression “30th day of September, 2022”, wherever occurring, the expression “31st day of March, 2023” shall be substituted;

(ii) in clause (b),—

(I) in sub-clauses (i) and (ii), for the expression “31st day of December, 2020”, wherever occurring, the expression “30th day of June, 2021” shall be substituted respectively; and

(II) in sub-clause (iii), for the expression “31st day of December, 2020”, the expression “31st day of December, 2021” shall be substituted; and

(e) in sub-section (9),—

(i) for the expression “31st day of December, 2020”, wherever occurring, the expression “31st day of December, 2021” shall be substituted; and

(ii) in clause (d), in sub-clause (iv), after the figure “2019”, the expression “or tax year 2020 at the option of the taxpayer” shall be added;

(36) after section 100D, the following new section shall be inserted, namely.—

“100E. Special provisions relating to small and medium enterprises.—(1) For tax year 2021 and onwards, the tax payable by a small and medium enterprise as defined in clause (59A) of section 2 shall be computed and paid in accordance with rules made under the Fourteenth Schedule.

(2) The Board may prescribe a simplified return for a small and medium enterprise.”;

(37) in section 107, in sub-section (1), after the words “avoidance of taxes”, the words “or assistance in the recovery of taxes” shall be inserted;

(38) in section 111,—

a. in sub-section (2), in clause (ii), for the word “and” occurring for the second time, the word “or” shall be substituted;

b. for sub-section (4), the following shall be substituted, namely:—

“(4) Sub-section (1) does not apply to any amount of foreign exchange remitted from outside Pakistan through normal banking channels not exceeding five million Rupees in a tax year that is en-cashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect.”;

c. in sub-section (5), the following new explanation shall be added, namely:—

“Explanation.—For the removal of doubt, a separate notice under this section is not required to be issued if the explanation regarding nature and sources of amount credited or the investment of money, valuable article, or the funds from which expenditure was made has been confronted to the taxpayer through a notice under sub-section (9) of section 122 of this Ordinance.”.

(39) in section 113,—

(a) in sub-section (1), for the word “ten” wherever occurring, the word “hundred” shall be substituted;

(b) in sub-section (2),—

(i) in clause (a), for the semi colon at the end a full stop shall be substituted and thereafter the following explanation shall be added, namely:—

“Explanation.—For the removal of doubt, it is clarified that the definition of turnover covers receipts from all business activities in line with expression “ turnover from all sources” used in sub-section (1) including but not limited to receipts from sale of immoveable property where such receipt is taxable under the head Income from Business;”;

(ii) in clause (c), for the proviso, the following shall be substituted, namely:—

“Provided that if tax is paid under sub-section (1) due to the fact that no tax is payable or paid for the year, the entire amount of tax paid under sub-section (1) shall be carried forward for adjustment in the manner stated aforesaid:

Provided further that the amount under this clause shall be carried forward and adjusted against tax liability for five tax years immediately succeeding the tax year for which the amount was paid.”;

(40) in section 114,—

(a) in sub-section (1),—

(i) clause (ad) shall be omitted; and

(ii) after clause (b), the following new clause shall be inserted, namely:—

“(c) persons or classes of persons notified by the Board with the approval of the Minister in-charge.”;

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

“Provided further that the time-limitation provided under this sub-section shall not apply if the Commissioner is satisfied on the basis of reasons to be recorded in writing that

a person who failed to furnish his return has foreign income or owns foreign assets.”; and

(c) in sub-section (6), in clause (a), for the semi colon, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided that Commissioner may waive this condition if the Commissioner is satisfied that filing of revised accounts or audited accounts is not necessary;”;

(41) for section 114A, the following shall be substituted, namely:—

“114A. Business bank account.—(1) Every taxpayer shall declare to the Commissioner the bank account utilized by the taxpayer for business transactions.

(2) Business bank account shall be declared through original or modified registration form prescribed under section 181.”;

(42) in section 120,—

(a) in sub-section (1),—

(i) in clause (a), the expression “, equal to the respective amounts adjusted under sub-section (2A)” shall be omitted;

(ii) in clause (b),—

(I) for the expression “adjustments were made under sub-section (2A)”, the expression “return was furnished” shall be substituted; and

(II) for the full stop at the end a colon shall be substituted and thereafter the following new provisos shall be added, namely:—

“Provided that until the date specified under the fourth proviso to sub-section (2A) is notified, this subsection shall be in force as if sub-section (2A) is not in operation:

Provided further that once the date under the fourth proviso to sub-section (2A) is notified,

clauses (a) and (b) shall only apply when the provisions of sub-section (2A), if invoked, are first complied with:

Provided further once compliance is made under the second proviso,—

(i) the adjusted amount under sub-section (2A) shall be construed to be the tax payable and due under clause (a);and

(ii) the date of the compliance under sub-section (2A) shall be the date for the purposes of clause (b).”;

(b) in sub-section (2A), in clause (iv), in the third 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 the provisions of this sub-section shall apply from the date notified by the Federal Board of Revenue in the official Gazette.”;

(43) in section 122,—

(a) in sub-section (5A), the expression “ after making, or causing to be made, such inquiries as he deems necessary,” shall be omitted; and

(b) in sub-section (9), for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely:—

“Provided that order under this section shall be made within one hundred and twenty days of issuance of show cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, so however, such extended period shall in no case exceed ninety days. This proviso shall be applicable to a show cause notice issued on or after the first day of July, 2021.

Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or agreed assessment proceedings under section 122D or the time taken

through adjournment by the taxpayer not exceeding sixty days shall be excluded from the computation of the period specified in the first proviso.”;

(44) in section 122A, after sub-section (4), the following new sub- section shall be added, namely:—

“(5) If any order is remanded back to any lower authority by the Commissioner for modification , alteration, implementation of directions or de novo proceedings, the order giving effect to the directions of the Commissioner shall be issued within one hundred and twenty days.”;

(45) in section 127,—

(a) for sub-section (2), the following new sub-section shall be substituted, namely:—

“(2) No appeal under sub-section (1), shall be made by a taxpayer against an order of assessment unless the taxpayer has paid the amount of tax due under sub section (1) of section 137.”; and

(b) after sub-section (3), the following new sub-section shall be inserted, namely:—

“(3A) The Board may prescribe mechanism for electronic filing of the appeals.”;

(46) in section 130, in sub-section (4),—

(a) in clause (a), for the words “Regional Commissioner”, the words “Chief Commissioner Inland Revenue”, shall be substituted; and

(b) in clause (b), the words “ or Collector”, shall be omitted;

(47) in section 134A,—

(a) in sub-section (1), in clause (c),—

(i) the expression “where criminal proceedings have been initiated or” shall be omitted;

(ii) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided that if the issue involves a mixed question of fact and law, the Board, while taking into consideration all relevant facts and circumstances, shall decide whether or not ADRC may be constituted.”

(b) after sub-section (1), amended as aforesaid, the following new sub-section shall be inserted, namely:—

“(1A) The application for dispute resolution shall be accompanied by an initial proposition for resolution of the dispute, from which, the taxpayer would not be entitled to retract.”;

(d) in sub-section (4), for the expression, “ one hundred and twenty days of its appointment”, the words “sixty days of its appointment extendable by another thirty days for the reasons to be recorded in writing” shall be substituted;

(e) for sub-section (5), the following shall be substituted, namely:—

“(5) The recovery of tax shall be stayed on the constitution of committee till the final decision or dissolution of the committee, whichever is earlier”;

(f) after sub-section (6), the following new sub-section shall be inserted, namely:—

“(6A) If the committee fails to decide within the period mentioned in sub section (4), the Board shall dissolve the committee by an order in writing and may re- constitute another committee and the provisions of sub- sections (2), (3), (4), (5) and (6) shall apply mutatis mutandis to the second committee”; and

(g) in sub-section (7), for the words “the Committee fails to decide within the period of one hundred and twenty days”, the words “the Second Committee fails to decide within time limit prescribed” shall be substituted;

(48) in section 139, in sub-section (1), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(49) after section 146B, the following new section shall be inserted, namely:—

“146C. Assistance in the recovery and collection of taxes.—The provisions of sections 138, 138A, 138B, 139, 140, 141, 142,

143, 144, 145, 146, 146A, and 146B shall mutatis mutandis apply in respect of assistance in collection and recovery of taxes in pursuance of a request from a foreign jurisdiction under a tax treaty, a multilateral convention, an inter- governmental agreement or similar arrangement or mechanism.”;

(50) in section 147, in sub-section (6), in the first proviso, for the colon at the end, a full stop shall be substituted and thereafter the second proviso shall be omitted;

(51) in section 150, after the word “paid”, the words “ or collect tax from the amount of dividend in specie” shall be inserted;

(52) section 150A shall be omitted;

(53) in section 151, after sub-section (1), following new sub-section shall be inserted, namely:—

“(1A) Every special purpose vehicle or a company, at the time of making payment of a return on investment in sukuks to a sukuk holder shall deduct tax from the gross amount of return on investment at the rate specified in Division IB of Part III of the First Schedule.”;

(54) in section 152,—

(a) for the sub-sections (1B), (1BB) and (1BBB), following shall be substituted, namely:—

“(1B) The tax deductible under sub-sections (1A), (1AA) and (1AAA) shall be a minimum tax on the income of the non-resident persons in respect of payments mentioned therein.

(1BA) Every person responsible for making payment directly or through an agent or intermediary to a non-resident person for foreign produced commercial for advertisement on any television channel or any other media, shall deduct tax at the rate of twenty percent from the gross amount paid. The tax deductible under this sub-section shall be final tax on the income of non- resident person arising out of such payment.;

(b) after sub-section (1D), the following new sub-sections shall be inserted, namely:—

“(1DA) Every banking company maintaining a Foreign Currency Value Account (FCVA) or a non-resident Pakistani Rupee Value Account (NRVA) of a non- resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) shall deduct tax from capital gain arising on the disposal of debt instruments and government securities and certificates (including Shariah compliant variant) invested through aforesaid accounts at the rate specified in Division II of Part III of the First Schedule.”, and

“(1DB) Every special purpose vehicle or a company, at the time of making payment of a return on investment in sukuks to a non-resident sukuk holder shall deduct tax from the gross amount of return on investment at the rate specified in Division IB of Part III of the First Schedule.”; and

“(1E) The tax deductible under sub-sections (1D), (1DA) and (1DB) shall be a final tax in respect of persons and income mentioned therein.”;

(55) section 152A shall be omitted;

(56) in section 153,—

(a) in sub-section (4),—

(i) in the first proviso, for the words, “public company listed on registered stock exchange in Pakistan”, the word “company” shall be substituted; and

(ii) in the second proviso, the words, “public listed” shall be omitted; and

(b) in sub-section (5), clause (b) shall be omitted;

(57) section 153B shall be omitted;

(58) after section 154, the following new section shall be inserted, namely:–

“154A. Export of Services.—(1) Every authorized dealer in foreign exchange shall, at the time of realization of foreign exchange proceeds on account of the following, deduct tax from the proceeds at the rates specified in Division IVA of Part III of the First Schedule –

(a) exports of computer software or IT services or IT enabled services in case tax credit under section 65F is not available;

(b) services or technical services rendered outside Pakistan or exported from Pakistan;

(c) royalty, commission or fees derived by a resident company from a foreign enterprise in consideration for the use outside Pakistan of any patent, invention, model, design, secret process or formula or similar property right, or information concerning industrial, commercial or scientific knowledge, experience or skill made available or provided to such enterprise;

(d) construction contracts executed outside Pakistan; and

(e) other services rendered outside Pakistan as notified by the Board from time to time;

(2) The tax deductible under this section shall be a final tax on the income arising from the transactions referred to in this section, upon fulfilment of the following conditions –

(a) return has been filed;

(b) withholding tax statements for the relevant tax year have been filed; and

(d) no credit for foreign taxes paid shall be allowed.

(3) The provisions of sub-section (2) shall not apply to a person who does not fulfill the specified conditions or who opts not to be subject to final taxation:

Provided that the option shall be exercised every year at the time of filing of return under section 114.

(4) Where a taxpayer, while explaining the nature and source of any amount, investment, money, valuable article, expenditure, referred to in section 111, takes into account any source of income which is subject to final tax in accordance with the provisions of this section, he shall not be entitled to take credit of a sum that can be reasonably attributed to the business activity or activities mentioned in sub-section (1).

(5) The Board in consultation with State Bank of Pakistan shall prescribe mode, manner and procedure of payment of tax under this section.

(6) The Board shall have power to include or exclude certain services for applicability of provisions of this section.”;

(59) in section 155,—

(a) in the marginal note for the words “ income from”, the words “Rent of immoveable” shall be substituted; and

(b) in sub-section (1), after the explanation, the following explanation shall be added, namely:—

“Explanation.—For removal of doubt, it is clarified that the sub section (1) shall apply when a payment is made on account of rent of immoveable property irrespective of head of income”;

(60) in section 159, in sub-section (1),—

(a) in clause (c), for the expression “section 100C”, the words “under this Ordinance” shall be substituted; and

(b) for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely:—

“Provided that in case of a company, the Commissioner shall issue exemption or lower rate certificate under this section within fifteen days of filing of application by the company:

Provided further that the Commissioner shall be deemed to have issued the exemption certificate upon the expiry of fifteen days from filing of application by the aforesaid company and the certificate shall be automatically processed and issued by Iris:

Provided also that the Commissioner may modify or cancel the certificate issued automatically by Iris on the basis of reasons to be recorded in writing after providing an opportunity of being heard.”;

(61) in section 165, after sub-section (6), the following new sub- sections shall be added, namely:—

“(7) Every prescribed person collecting tax under Division II of this Part, Chapter XII or the Tenth Schedule or deducting tax from a payment under Division III of this Part, Chapter XII or the Tenth Schedule shall, e-file to the Commissioner an annual statement for the relevant tax year within thirty days of the end of tax year in addition to statement to be filed under sub-section (6) of this section.

(8) Every prescribed person collecting tax under Division II of this Part or Chapter XII, the Tenth Schedule or deducting tax from a payment under Division III of this Part, Chapter XII or the Tenth Schedule shall also e-file to the Commissioner a statement in the prescribed form reconciling the amounts mentioned in annual statement filed under sub-section (7) with the amounts declared in the return, audited accounts or financial statements by the due date of filing of return of income as provided under section 118 of the Ordinance.”;

(62) in section 168, in sub-section (3), after clause (e), the following new clause shall be inserted, namely:—

“(ea) sub-section (2) of section 154A;”;

(63) in section 169, in sub-section (1), in clause (b), after the expression “section 154,” the expression “sub-section (2) of section 154A,” shall be inserted;

(64) after section 170, the following new section shall be inserted, namely:—

“170A. Electronic processing and electronic issuance of Refunds by the Board.—Notwithstanding anything contained in section 170 of this Ordinance, commencing from tax year 2021, the Board may process and issue refund to the taxpayer who has filed the return of income without requiring refund application by the taxpayer to the extent of tax credit verified by the Board’s computerized system as may be prescribed. The refund amount sanctioned under this section shall be electronically transferred in the taxpayer’s notified bank account.”;

(65) in section 182,—

(a) in sub-section (1), in the Table, in column (1),—

(i) against S. No. 1, in column (3), in the proviso and before the explanation, for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely:—

“Provided further that if taxable income is up-to eight hundred thousand Rupees, the minimum amount of penalty shall be five thousand Rupees:

Provided also that the amount of penalty shall be reduced by 75%, 50% and 25% if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law.”;

(ii) against S. No. 1A, in column (3), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

“Provided that where it stands established that no tax was required to be deducted or collected during the relevant period, minimum amount of penalty shall be ten thousand Rupees.”;

(iii) S. No. 4A and entries relating thereto in column (2), (3) and (4) shall be omitted;

(iv) against S. No. 4B, in column (3), for the figure “ 10,000”, the figure “100,000” shall be substituted;

(v) against S. No. 6,—

(i) in column (2),—

(I) after the word “tax”, occurring for the first time, the expression “paid is” shall be inserted; and

(II) the expression “is paid” shall be omitted; and

(ii) in column (3), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

“Provided that no penalty shall be imposed to the extent of the tax shortfall occurring as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayer’s position.”;

(vi) against S. No. 10,—

(i) in column (3), for the figure “100%”, the figure “50%” shall be substituted; and

(ii) in column (4), for the expression “and general”, the figure “118” shall be substituted;

(vii) against S. No. 11, in column (3), for the words “one hundred” the word “fifty” shall be substituted;

(viii) against S. No. 15, for the entries in column (4), the expression “Division II or Division III of Part V of Chapter X or Chapter XII” shall be substituted;

(ix) against S. No. 16,—

(i) in column (2), after the letters “NTN”, the expression “or business licence” shall be inserted; and

(ii) in column (4), after the figure “181C”, the expression “and 181D” shall be added;

(x) S. No. 19 and entries relating thereto shall be omitted;

(xi) S. No. 20 and entries relating thereto shall be omitted;

(xii) after S. No. 28, the following new S .No. and entries relating thereto in columns (2), (3), and (4) shall be added, namely:–

“29

Where any person fails to declare business bank account(s), in his registration application or fails to amend his registration profile to declare existing business bank account(s) willfully.

Such person shall pay a penalty of Rs. 10,000 for each day of default since the date of submission of application for registration or date of opening of undeclared business bank account whichever is later:

Provided that if penalty worked out as aforesaid is less than Rs.100,000 for each undeclared bank account, such person shall pay a penalty of Rs.100,000 for each undeclared business bank account:

Provided further that this provision shall be applicable from the first day of October, 2021 during which period the taxpayer may update their registration forms.

181”;

(b) in sub-section (2), after the proviso, the following explanation shall be added, namely:—

“Explanation.—For the removal of doubt, it is clarified that establishing mens rea is not necessary for levying of penalty under this section.”;

(66) in section 182A, sub-section (2) shall be omitted;

(67) in section 191, in sub-section (1),—

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

(ii) in clause (f), for the comma, at the end, a semi colon and the word “or” shall be inserted and thereafter the following new clause shall be added, namely:—

“(g) declare business bank account(s) in the registration form or updated registration form or return of income or wealth statement,”;

(68) in section 203, 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 offence of concealment of income which has resulted in non-payment of tax of rupees one hundred and above in case of a filer and rupees twenty five million or above in case of non-filer, the procedure provided in section 203B shall be applicable.”;

(69) after section 203A, the following sections shall be added, namely:—

“203B. Power to arrest and prosecute.—(1) Where on the basis of material evidence brought on record, as a result of audit conducted by the auditors in terms of sub-section (8) of section 177 read with section 214C of this Ordinance, an assessment is made or amended under section 121 or 122 of this Ordinance, as the case may be, and the assessing officer records a finding that the taxpayer has committed the offence of concealment of income which has resulted in non-payment of tax of Rupees one hundred million and above in case of a filer and rupees twenty five million or above in case of non- filer, the taxpayer may be arrested after obtaining written approval of the committee specified under sub-section (2).

(2) The committee under sub-section (1) shall comprise the Minister for Finance and Revenue, the Chairman of the Board and the senior most member of the Board.

(3) All arrests made under this Ordinance shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (Act V of 1898).

(4) Notwithstanding anything contained in sub-sections (1) and

(2) or any other provision of this Ordinance, where any person has committed offence of concealment of income or any offence warranting prosecution under this Ordinance, the Chief Commissioner with the prior approval of the Board may, either before or after the institution of any proceedings for recovery of tax, compound the offence if such person pays the amount of tax due along with such default surcharge and penalty as is determined under the provisions of this Ordinance.

(5) Where the person suspected of offence of concealment of income or any offence warranting prosecution under this Ordinance is a company, every director or officer of that company whom the authorised officer has reason to believe is personally responsible for actions of the company contributing to offence of concealment of income or any offence warranting prosecution under this Ordinance shall be liable to arrest:

Provided that any arrest under this sub-section shall not absolve the company from the liabilities of payment of tax, default surcharge and penalty imposed under this Ordinance.”;

203C. Procedure to be followed on arrest of a person.—(1) When an officer of Inland Revenue authorized under sub-section (1) of section 203B in this behalf arrests a person under section 203B, he shall immediately intimate the fact of the arrest of that person to the Special Judge who may direct such officer to produce that person at such time and place and on such date as the Special Judge considers expedient and such Officer shall act accordingly.

(2) Notwithstanding anything contained in the sub-section (1), any person arrested under this Ordinance shall be produced before the Special Judge or, if there is no Special Judge within a reasonable distance, to the nearest Judicial Magistrate, within twenty-four hours of such arrest, excluding the time necessary for the journey from the place of arrest to the Court of the Special Judge or, as the case may be, of such Magistrate.

(3) When any person is produced under sub-section (2) before the Special Judge, he may, on the request of such person,

after perusing the record, if any and after giving the prosecution an opportunity of being heard, admit him to bail on his executing a bond, with or without sureties, or refuse to admit him to bail and direct his detention at such place as he deems fit:

Provided that nothing herein contained shall preclude the Special Judge from cancelling the bail of any such person at a subsequent stage if, for any reason, he considers such cancellation necessary, but before passing such order he shall afford such person an opportunity of being heard, unless for reasons to be recorded he considers that the affording of such opportunity shall defeat the purposes of this Ordinance.

(4) When such person is produced under sub-section (2) before a Judicial Magistrate, such Magistrate may, after authorising his detention in such custody at such place and for such period as he considers necessary or proper for facilitating his earliest production before the Special Judge, direct his production before the Special Judge on a date and time to be fixed by him or direct such person to be forthwith taken to, and produced before, the Special Judge and he shall be so taken.

(5) Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the Judicial Magistrate from remanding any such person to the custody of an officer of Inland Revenue holding inquiry against that person if such officer makes a request in writing to that effect, and the Special Judge or the Judicial Magistrate, after perusing the record, if any, and hearing such person, is of the opinion that for the completion of inquiry or investigation it is necessary to make such order:

Provided that the period of such custody shall not exceed more than fourteen days.

(6) When any person is arrested under this Ordinance, an officer of Inland Revenue shall record the fact of arrest and other relevant particulars in the register specified in sub-section

(10) and shall immediately proceed to inquire into the charge against such person and if he completes the inquiry within twenty four hours of his arrest, excluding the time necessary for journey as aforesaid, he may, after producing such person

before the Special Judge or the nearest Judicial Magistrate, make a request for his further detention in his custody.

(7) While holding an inquiry under sub-section (6), an officer of Inland Revenue shall exercise the same powers as are exercisable by an officer in charge of a police station under the Code of Criminal Procedure, 1898 (Act V of 1898), but such officer shall exercise such powers subject to the foregoing provisions of this section while holding an inquiry under this Ordinance.

(8) If an officer of Inland Revenue, after holding an inquiry as aforesaid, is of the opinion that there is no sufficient evidence or reasonable ground for suspicion against such person, he shall release him on his executing a bond, with or without sureties, and shall direct such person to appear, as and when required, before the Special Judge, and make a report to the Special Judge for the discharge of such person and shall make a full report of the case to his immediate superior.

(9) The Special Judge to whom a report has been made under sub-section, (8) may, after the perusal of record of the inquiry, and hearing the prosecution, agree with such report and discharge the accused or, if he is of the opinion that there is sufficient ground for proceedings against such person, proceed with his trial and direct the prosecution to produce evidence.

(10) An officer of Inland Revenue empowered to hold inquiry under this section shall maintain a register to be called “Register of Arrests and Detentions” in the prescribed form in which he shall enter the name and other particulars of every person arrested under this Ordinance, together with the time and date of arrest, the details of the information received, the details of things, goods or documents, recovered from his custody, the name of the witnesses and the explanation, if any, given by him and the manner in which the inquiry has been conducted from day to day and, such register or authenticated copies of its aforesaid entries shall be produced before the Special Judge, whenever such Officer is so directed by him.

(11) After completing the inquiry, an officer of Inland Revenue shall, as early as possible, submit to Special Judge a complaint in the same form and manner in which the officer in-charge of a police station submits a report, before a court.

(12) Magistrate of the first class may record any statement or confession during inquiry under this Ordinance, in accordance with the provisions of section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898).

(13) Without prejudice to the foregoing provisions of this section, Board, with the approval of the Federal Minister-in-charge, may, by notification in the official Gazette, authorize any other officer working under the Board to exercise the powers and perform the functions of an officer of Inland Revenue under this section, subject to such conditions, if any, that it may deem fit to impose.

203D. Special Judges.—(1) The Federal Government shall by notification in the official Gazette, appoint as many Special Judges as it considers necessary and, where it appoints more than one Special Judge, it shall specify in the notification the headquarter of each Special Judge and the territorial limits within which he shall exercise jurisdiction under this Ordinance.

(2) No person shall be appointed as a Special Judge unless he is or has been a Sessions Judge.

203E. Cognizance of offences by Special Judges.—(1) Notwithstanding anything contained in this Ordinance or any other law for the time being in force, a Special Judge may, within the limits of his jurisdiction, take cognizance of any offence punishable under this Ordinance upon—

(a) a report in writing made by an officer of Inland Revenue or by any other officer especially authorized in this behalf by the Federal Government; or

(b) receiving a complaint or information of facts constituting such offence made or communicated by any person; or

(c) his own knowledge acquired during any proceeding before him under this Ordinance or under any other law for the time being in force.

(2) Upon the receipt of report under clause (a) of sub-section (1), the Special Judge shall proceed with the trial of the accused.

(3) Upon the receipt of a complaint or information under clause (b), or acquired in the manner referred to in clause (c) of sub- section (1), the Special Judge may, before issuing a summon or warrant for appearance of the person complained against, hold a preliminary inquiry for the purpose of ascertaining the truth or falsehood of the complaint, or direct any magistrate or any officer of Inland Revenue or any police officer to hold such inquiry and submit a report, and such Magistrate or officer shall conduct such inquiry and make report accordingly.

(4) If, after conducting such inquiry or after considering the report of such Magistrate or officer, the Special Judge is of the opinion that there is—

(a) no sufficient ground for proceeding, he may dismiss the complaint, or

(b) sufficient ground for proceeding, he may proceed against the person complained against in accordance with law.

(5) A special Judge or a Magistrate or an officer holding inquiry under sub-section (3) may hold such inquiry, as early as possible, in accordance with the provision of section 202 of the Code of Criminal Procedure, 1898 (Act V of 1898).

203F. Special Judge, etc. to have exclusive jurisdiction.— Notwithstanding anything contained in this Ordinance or in any other law for the time being in force no,–

(a) court other than the Special Judge having jurisdiction, shall try an offence punishable under this Ordinance;

(b) other court or officer, except in the manner and to the extent specifically provided for in this Ordinance, shall exercise any power, or perform any function under this Ordinance;

(c) court, other than the High Court, shall entertain, hear or decide any application, petition or appeal under chapters XXXI and XXXII of the Code of Criminal Procedure, 1898 (Act V of 1898), against or in respect of any order or direction made under this Ordinance; and

(d) no court, other than the Special Judge or the High Court, shall entertain any application or petition or pass any order or give any direction under chapters XXXVII, XXXIX, XLIV or XLV of the aforesaid Code.

203G. Provisions of Code of Criminal Procedure, 1898, to apply.—(1) The provision of the Code of Criminal procedure, 1898 (Act V of 1898), so far as they are not inconsistent with the provisions of this Ordinance, shall apply to the proceedings of the court of a Special Judge and such court shall be deemed to be a court of Sessions for the purpose of the said Code and the provisions of Chapter XXIIA of the foresaid Code, so far as applicable and with the necessary modifications, shall apply to the trial of cases by the Special Judge under this Ordinance.

(2) For the purposes of sub-section (1), the Code of Criminal Procedure, 1898 (Act V of 1898), shall have effect as if an offence punishable under this Ordinance were one of the offences referred to in sub-section (1) of section 337 of the said Code.

203H. Transfer of cases.—(1) Where more than one Special Judge are appointed within the territorial jurisdiction of a High Court, the High Court, and where not more than one Special Judge is so appointed, the Federal Government, may by order in writing direct the transfer, at any stage of the trial, of any case from the court of one Special Judge to the Court of another Special Judge for disposal, whenever it appears to the High Court or, as the case may be, the Federal Government, that such transfer may promote the ends of justice or tend to the general convenience of the parties or witnesses.

(2) In respect of a case transferred to a Special Judge under sub- section (1), such Special Judge shall not by reason of the said transfer, be bound to recall and rehear any witness whose evidence has been recorded in the case before the transfer and may act upon the evidence already recorded or produced before the court which tried the case before the transfer.

203I. Place of sittings.—A Special Judge shall ordinarily hold sittings at his headquarters but, keeping in view the general convenience of the parties or the witnesses, he may hold sittings at any other place.”;

(70) in section 204, for the words “Federal Government” wherever occurring, the expression “Board with the approval of the Minister-in-charge” shall be substituted;

(71) in section 212, for the words “Regional Commissioner”, the words “Chief Commissioner Inland Revenue”, shall be substituted;

(72) in section 216, in sub-section (3), in clause (k), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(73) section 222A shall be renumbered as sub-section (1) of that section and thereafter the following new sub-section shall be added, namely:—

“(2) The Board may authorize and prescribe the manner in which fee and service charges collected including by ventures of public-private partnership under this section are expended.”;

(74) in section 225, for the expression “section 316 of the Companies Ordinance, 1984 (XLVII of 1984)”, the expression “section 310 of the Companies Act, 2017 (XIX of 2017)” shall be substituted;

(75) after section 227B, the following new section shall be inserted, namely:—

“227BA. Reward and benefits for certain persons.—(1) The Board may sanction rewards to e-intermediaries for filing of returns of new taxpayers.

(2) The Board with the approval of Federal Minister in-charge may announce benefits, rebates, tax credits, allowances and any other incentive in cash or otherwise for class or classes of persons.

(3) The Board with the approval of the Federal Minister in-charge may, by notification in the official Gazette, prescribe the procedure in this behalf and also notify the class or classes of persons eligible under this section. The provisions of this section shall take effect from the date notified by the Board.”;

(76) after section 227D, the following new section shall be added, namely:—

“227E. E-hearing.—(1) The Board may design and prescribe e-hearing module for the purpose of conducting hearings, granting opportunity of being heard and electronically receiving any information for the purpose of this Ordinance.

(2) The recording of e-hearing proceedings shall be admissible as evidence before any forum or court of law for the purpose of this Ordinance.

(3) The Board may make rules for the purpose of this section.”;

(77) after section 230H, the following new sub-section shall be inserted, namely:—

“230I. Directorate General of Compliance Risk Management.—

(1) The Directorate General of Compliance Risk Management 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—

(a) specify the functions, jurisdiction and powers of the Directorate General of Compliance Risk Management and its officers; and

(b) confer the powers of authorities specified in section 207 upon the Directorate General and its officers.”;

(78) sections 231A, 231AA shall be omitted;

(79) in section 231B, after sub-section (2), the following new sub- section shall be inserted, namely:—

“(2A) Every motor vehicle registration authority of Excise and Taxation Department shall, at the time of registration, collect tax at the rates specified in Division VII of Part IV of the First Schedule, if the locally manufactured motor vehicle has been sold prior to registration by the person who originally purchased it from the local manufacturer.” ;

(80) in section 233, in sub-section (1), for the expression “ association of persons constituted by, or under any law”, the expression “association of person or individual having turnover of hundred million rupees or more” shall be substituted;

(81) sections 233A and 233AA shall be omitted;

(82) section 234A shall be omitted;

(83) in section 235,

(a) in sub-section (1),

(i) after the word “ industrial” the words “ or domestic” shall be inserted;

(ii) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided that the provisions of sub-section (1) shall not apply to a domestic consumer of electricity if his name appears on the Active Taxpayers’ List.”; and

(b) in sub-section (3) for the words “for the tax year”, the expression “under section 147 or whose entire income is subject to final tax regime or minimum tax regime under any provisions of this Ordinance other than this section” shall be substituted;

(84) section 235A shall be omitted;

(85) in section 236, in sub-section (1), after the words “specified in”, the words “Division V” shall be inserted;

(86) section 236B shall be omitted;

(87) in section 236C, in sub-section (1),—

(a) in the explanation, after the words “co-operative society”, the expression “, public and private real estate projects registered/ governed under any law, joint ventures, private commercial concerns” shall be inserted;

(b) in the proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided further that if the seller or transferor is a non- resident individual holding Pakistan Origin Card (POC) or

National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.”;

(88) in section 236G, in sub-section (1), after the word “of” occurring for the first time, the expression “pharmaceuticals, poultry and animal feed, edible oil and ghee, auto-parts, tyres, varnishes, chemicals, cosmetics, IT equipment,” shall be inserted;

(89) in section 236H, in sub-section (1), after the word “of” occurring for the first time, the expression “pharmaceuticals, poultry and animal feed, edible oil and ghee, auto-parts, tyres, varnishes, chemicals, cosmetics, IT equipment,” shall be inserted;

(90) section 236HA shall be omitted;

(91) in section 236K,—

(a) in sub-section (1), in the explanation, after the expression “co-operative society”, the expression “, public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns” shall be inserted;

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

“Provided that if the buyer or transferee is a non- resident individual holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who has acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability for such buyer or transferee.”; and

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

“Provided that where tax has been collected along with installments, no further tax under this section shall be collected at the time of transfer of property in the name of buyer from whom tax has been collected in installments which is equal to the amount payable in this section.”;

(92) sections 236L shall be omitted;

(93) section 236P shall be omitted;

(94) section 236S shall be omitted;

(95) section 236V shall be omitted;

(96) section 236Y shall be omitted;

(97) after section 241, the following new section shall be added, namely:—

“242. Benefits of repealed provisions.—The existing beneficiaries of exemptions or concessionary provisions of the Ordinance, already expired or expiring, on thirtieth day of June, 2021 or repealed by Tax Laws (Second Amendment) Ordinance, 2021 shall continue to enjoy benefits of the repealed provisions for the periods prescribed therein and subject to conditions and limitations specified therein.

(98) in the First Schedule,—

(A) in Part I,—

(a) in Division IIA, in the Table, in column (1), against serial No. 1, in heading of column (6), after the expression “Tax Year 2021”, the words “and onwards” shall be inserted;

(b) in Division III, in clause (b), after the word” funds”, the expression “,Real Estate Investment Trusts” shall be inserted;

(c) in Division IIIA, after the expression “shall be –” the expression “15%” shall be added and thereafter TABLE shall be omitted;

(d) Division VIA shall be omitted;

(e) in Division VII, for the tabular form, the following shall be substituted namely:—

“TABLE

S.No

Period

Tax Year 2015

Tax Year 2016

Tax Year 2017

Tax Year 2018, 2019, 2020 and

2021

Tax Year 2022 and onwards

Securities acquired before 01-07-2016

Securities acquired after 01-07-2016

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Where holding period of a security is less than twelve months

12.5%

15%

12.5%

Where holding period of a security is twelve months or more but less than twenty-four months

10%

12.5%

Where holding period of a security is twenty - four months or more but the security was acquired on or after 1st July, 2013.

7.5%

Where the security was acquired before 1st July, 2013

Future commodity contracts entered into by members of Pakistan Mercantile Exchange

5%”;

(f) for Division VIII, the following shall be substituted, namely:—

“Division VIII

Tax on capital gains on disposal of Immoveable Property

The rate of tax to be paid under sub-section (1A) of section 37 shall be as follows:—

TABLE

S.No	Amount of Gain	Rate of Tax
(1)	(2)	(3)
1.	Where the gain does not exceed Rs. 5 million	3.5%
2.	Where the gain exceeds Rs. 5 million but does not exceed Rs. 10 million	7.5%
3.	Where the gain exceeds Rs. 10 million but does not exceed Rs. 15 million	10%
4.	Where the gain exceeds Rs. 15 million	15%

(g) in Division IX, for the Table, the following shall be substituted:—

S.No	Person(s)	Minimum Tax as percentage of the person’s turnover for the year
(1)	(2)	(3)
1.	(a) Oil marketing companies, Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited (for the cases where annual turnover exceeds rupees one billion.) (b) Pakistan International Airlines Corporation; and (c) Poultry industry including poultry breeding, broiler production, egg production and poultry feed production;	0.75%
2.	(a) Oil refineries (b) Motorcycle dealers registered under the Sales Tax Act, 1990	0.5%
3.	(a) Distributors of pharmaceutical products, fast moving consumer goods and cigarettes; (b) Petroleum agents and distributors who are registered under the Sales Tax Act, 1990; (c) Rice mills and dealers; (d) Tier-1 retailers of fast moving consumer goods who are integrated with Board or its computerized system for real time reporting of sales and receipts; (e) Person’s turnover from supplies through e-commerce including from running an online marketplace as defined in clause (38B) of section 2. (f) Persons engaged in the sale and purchase of used vehicles; and (g) Flour mills	0.25%
4.	In all other cases	1.25%

(B) in Part II, in the first proviso, in clause (b), for the colon a semi-colon shall be substituted and thereafter the following new clause shall be added, namely:—

“(c) in case of importers of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and

LCVs with 150 kwh battery or below shall be one percent:”;

(a) in Division I,—

(i) the expression “ and 236S” shall be omitted;

(ii) in clause (b), after the word “funds”, the expression “, Real Estate Investment Trusts” shall be inserted;

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

(c) in Division IB, for the expression “under section 150A,” the expression, “ on return on investment in sukuks from a sukuk holder” shall be substituted;

(d) in Division II,—

(i) in clause (3A), for the expression “sub-section (1D)”, the expression “sub-sections (1D) and (1DA)” shall be substituted; and

(ii) in clause (5), in sub-clause (i),—

(A) for the expression “ clause (133) of Part I of the Second Schedule”, the expression “section 2” shall be substituted;

(B) after the words “training services”, the expression “, oilfield services” shall be inserted;”;

(e) in Division III,—

(i) in paragraph (1), sub-paragraph (ab) shall be omitted;

(ii) in paragraph (2), for sub-paragraph (i) the following shall be substituted, namely :—

“Division IVA Exports of Services

The rate of tax to be deducted under section 154A shall be one percent of the proceeds of the export.”;

(h) in Division V, for the TABLE, the following shall be substituted, namely:—

“TABLE

“Sr. No	Gross amount of rent	Rate of tax
(1)	(2)	(3)
1	Where the gross amount of rent does not exceed Rs. 300,000	Nil
2	Where the gross amount of rent exceeds Rs. 300,000 but does not exceed Rs. 600,000	5 per cent of the gross amount exceeding Rs. 300, 000
3	Where the gross amount of rent exceeds Rs. 600,000 but does not exceed Rs. 2,000,000	Rs. 15,000 plus 10 per cent of the gross amount exceeding Rs. 600, 000
4	Where the gross amount of rent exceed Rs. 2,000,000	Rs. 155,000 plus 25 per cent of the gross amount exceeding Rs. 2,000, 000”;

(i) Division VIB shall be omitted;

(D) in Part IV,—

(a) Divisions IIA and IIB shall be omitted;

(b) for Division IV, the following shall be substituted, namely:—

“DIVISION IV

Electricity Consumption

“(1) The rate of collection of tax from commercial and industrial consumers from gross amount of bills shall be as set out in the following Table, namely:—

TABLE

S.No	Gross amount of Bill	Tax
1	upto Rs. 500	Rs. 0
2	exceeds Rs. 500 but does not exceed Rs. 20,000	10% of the amount
3	exceeds Rs.20,000	Rs. 1950 plus 12% of the amount exceeding Rs. 20,000 for commercial consumers Rs. 1950 plus 5% of the amount exceeding Rs. 20,000 for industrial consumers

(2) The rate of tax to be collected on domestic electricity consumption shall be—

(i) zero percent the amount of monthly bill is less than Rs.25,000; and

(ii) 7.5% if the amount of monthly bill is Rs. 25,000 or more;”

(c) in Division V, in the Table, in the first column, against Serial Number (b), in the third column, for the expression “12.5%”, the expression “10% for tax year 2022 and 8% onwards” shall be substituted;

(d) Division VI and VIA shall be omitted;

(e) in Division VII, after clause (2), the following new clause shall be added, namely:—

“(3) The rate of tax under sub-section (2A) of section 231B shall be as follows:—

TABLE

S. No.	Engine capacity	Tax
(1)	(2)	(3)
1.	Up to 1000cc	Rs.50,000
2.	1001cc to 2000cc	Rs.100,000
3.	2001cc and above	Rs.200,000”; and

(f) Division IX shall be omitted;

(g) in Division XIV, after the Table, following new proviso shall be added, namely:—

“Provided that the rate of advance tax on sale to distributors, dealers or wholesalers of fertilizer shall be 0.25%, if they are already appearing on both the Active Taxpayers’ Lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001 (XLIX of 2001).”;

(h) for Division XV, the following shall be substituted, namely:—

“DIVISION XV

Advance tax on sale to retailers

The rate of collection of tax under section 236H on the gross amount of sales shall be 0.5%.” ; and

(i) Divisions XVA, XIX, XX, XXI, XXVI and XXVII shall be omitted;

(99) in the Second Schedule,—

(A) in Part I,—

(i) clause (4) shall be omitted;

(ii) clause (39) shall be omitted;

(iii) in clause (57),—

(a) in sub-clause (1), paragraph (iii) shall be omitted; and

(b) in sub-clause (2), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(iv) clauses (61), (64A), (64B), (64C) and (65) shall be omitted;

(v) in clause (66),—

(a) in sub-clause (1), in the Table 1, in column (1), after S. No. (xxxvi) and entries relating thereto in column (2), the following new entries shall be added, namely:—

"(xxxvii)	Islamic Naya Pakistan Certificates Company Limited (INPCCL).
(xxxviii)	Abdul Sattar Edhi Foundation.
(xxxix)	Patient’s Aid Foundation.
(xl)	Indus Hospital and Health Network.
(xli)	Securities and Exchange Commission of Pakistan.
(xlii)	Dawat-e-Hadiya, Karachi.
(xliii)	Privatisation Commission of Pakistan.
(xliv)	The Citizens Foundation.
(xlv)	Sundus Foundation.
(xlvi)	Ali Zaib Foundation
(xlvii)	Fauji Foundation.
(xlviii)	Make a Wish Foundation
(xlix)	Audit Oversight Board.
(xlx)	Supreme Court Water Conservation Account.
(xlxi)	Layton Rahmatullah Benevolent Trust (LRBT).
(xlxii)	Baluchistan Education Endowment Fund (BEEF).
(xlxiii)	Saylani Welfare International Trust.
(xlxiv)	Chiniot Anjuman Islamia.
(xlxv)	Army Welfare Trust.”;

(b) in sub-clause (2), in the Table 2, in column (1), serial numbers (i), (viii), (x), (xx), (xxx), (xxxi),

(xxxiii) and (xxxvi) and entries relating thereto in column (2) shall be omitted;

(vi) clauses (72), (72A) and (74) shall be omitted;

(vii) for clause (75), the following shall be substituted, namely:—

“(75) Any profit on debt and capital gains derived by any agency of foreign Government or any non- resident person approved by the Federal Government for the purpose of this clause from debt and debt instruments approved by the Federal Government.”;

(viii) in clause (78), for the expression “citizens of Pakistan and foreign nationals residing abroad, foreign association of persons, companies registered and operating abroad and foreign nationals residing in Pakistan”, the expression “non-resident individuals,

non-resident association of persons and non-resident companies” shall be substituted;

(ix) in clause (79), for the expression “citizen of Pakistan residing abroad”, the expression “non-resident individual holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC)” shall be substituted;

(x) clauses (80), (90), (90A), (91) and (98) shall be omitted;

(xi) for clause (99A), the following shall be substituted, namely:—

“(99A) Profits and gains accruing to a person on the sale of immoveable property to any type of REIT scheme upto the 30th day of June, 2023.”;

(xii) clauses (100), (101), (103) and (103C) shall be omitted;

(xiii) after clause (103C), omitted as aforesaid, the following new clause shall be added, namely:—

“(103D) Dividend income and long term capital gains of any venture capital fund from investments in zone enterprises as defined in clause (p) of section 2 of the Special Technology Zones Authority Ordinance, 2020 for a period of ten years commencing from issuance of licence by the Authority to the zone enterprise.”;

(xiv) clauses (104), (105), (105A), (110B), (110C), (114),

(114AA) and (117) shall be omitted;

(xv) for clause (126B), the following shall be substituted, namely:—

“(126B) Profits and gains derived by a refinery—

(a) from new deep conversion refinery of at least 100,000 barrels per day for which approval is given by the Federal Government before the 31st day of December, 2021; or

(xviii) clauses (126G), (126H), (126I) , (126J), (126K) and (126L) shall be omitted;

(xix) in clause (126M),—

(i) in para (a), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(ii) in the proviso, for the figure “2018”, the figure “2022” shall be substituted;

(xx) clauses (126N), (126O) and (131) shall be omitted;

(xxi) in clause (132),—

(a) in sub-clause (a), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted; and

(b) in sub-clause (c), in the fifth proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided further that no exemption under this clause shall be available to persons, who enter into agreement or to whom letter of intent is issued by Federal or Provincial Government for setting up an electric power generation project in Pakistan after the 30th day of June, 2021.”;

(xxii) clause (132A) shall be omitted;

(xxiii) after omitted clause (132A), the following new clause shall be inserted, namely:—

“(132AA) Profits and gains derived from sale of electricity by National Power Parks Management Company (Private) Limited or demerged entities of National Power Parks Management Company (Private) Limited commencing from the commercial operation dates and continuing after the date of

change of ownership as a result of privatization by the Privatization Commission of Pakistan.”;

(xxiv) clause (132B) shall be omitted;

(xxv) after clause (132B), omitted as aforesaid, the following new clause shall be inserted, namely:—

“(132C) Profits and gains derived by a taxpayer from a bagasse/biomass based cogeneration power project having one or more boilers of not less than 60 bar (kg/CM³) pressure each, commissioned after the first day of January 2013.”;

(xxvi) clauses (133), (135A), (136), (141), (143), (146) and

(148) shall be omitted;

(xxvii) after omitted clause (148), the following new clause shall be added, namely:—

“(149) Any sum—

(i) remitted to Pakistan through banking channels in foreign currency received by an international buying house from its non- resident principal to meet its expenses in Pakistan; and

(ii) chargeable under the head “Salary” received by a person who, not being a citizen or resident of Pakistan, is engaged as an expert by an international buying house.

Explanation.—For the purpose of this clause international buying house means persons acting as buying offices, buyers’ agents, or representatives of international buyers for facilitating exports from Pakistan and are registered as liaison offices with Board of Investment or companies registered with SECP. Provided that such buying houses act as cost centers with the sole purpose to bring export orders to Pakistan on behalf of their principals and do not enter into any local business transactions in Pakistan and their expenses are remitted to Pakistan.”

(B) in Part II,—

(a) clauses (2), (3) and (3B) shall be omitted;

(b) in clause (5A), after the expression “Pakistan,”, the expression “other than those covered under clauses (78) and (79) of Part I of the Second Schedule,” shall be inserted;

“(5AB) The rate of tax to be deducted under section 151 shall be ten percent from the profit on debt from a debt instrument, whether conventional or Shariah compliant, issued by the Federal Government under the Public Debt Act, 1944 (XVIII of 1944) or its wholly owned special purpose company, purchased by a resident citizen of Pakistan who has already declared foreign assets to the Board through a Foreign Currency Value Account (FCVA) maintained with authorized banks in Pakistan under the foreign exchange regulation issued by the State Bank of Pakistan:

Provided that the tax so deducted shall be the final tax.

(5AC) The rate of tax to be deducted under sub-section

(2) of section 152 or under section 151, as the case may be, shall be zero percent of the gross amount of profit on debt paid, covered under clauses (78) and (79) of Part I of the Second Schedule.”;

(d) clause (5B) shall be omitted;

(e) after the omitted clause (9A), the following new clauses shall be inserted, namely:—

“(9AA) In respect of import of white sugar from the 25th day of August, 2020 to the 15th day of November, 2020 both days inclusive, tax under section 148 shall be collected at the rate of 0.25% as per quantity, quality, mode and manner prescribed by Ministry of Commerce during the said period.

Cabinet Decision in case No.399/23/2020 dated the 16th June, 2020;

(12G) The provisions of section 148 shall, in pursuance of the Cabinet Decision in case No. 541/30/2020 dated the 4th August, 2020, not apply on import by the Trading Corporation of Pakistan of 300,000 metric tons of white sugar having PCT heading 1701.9910,1701.9920, specification B;

(12H) (a) The provisions of section 148 shall not apply on import of following goods for a period of three months starting from the 23rd of June, 2020, namely:—

S.No.

Description

PCT Code

(1)

(2)

(3)

1.

Oxygen gas

2804.4000

2.

Cylinders (for oxygen gas)

7311.0090

3.

Cryogenic tanks (for oxygen gas)

7311.0030

; and

(b) the concessions given in this clause shall also apply in respect of the letters of credit opened or goods declaration forms filed on or after the 23rd June, 2020;

(12I) The provisions of section 148 shall not apply on import of 83 X Micron sprayers for Anti-Locust Operation (Respective heading) by National Disaster Management Authority (NDMA).

(12J) The provisions of section 148 shall, in pursuance of the Cabinet Decision in case No. 34/02/2021, dated the 12th January, 2021, not apply on import of three hundred thousand metric tons of wheat through tendering process by the Trading Corporation of Pakistan;

(12K) (a) The provisions of section 148 shall not apply on import of following goods by the manufacturers of oxygen for a period of three months starting from the 25th day of December, 2020, namely:—

S.No.	Description	PCT Code
(1)	(2)	(3)
1.	Cryogenic Tanks (for oxygen Gas)	7311.0030

(b) the concessions given in this clause shall also apply in respect of the letters of credit opened or goods declaration forms filed on or after the 25th day of December, 2020;

(12L) The provisions of section 148 and 153 shall not apply on import and subsequent supply of five hundred thousand metric tons of white sugar imported by the Trading Corporation of Pakistan;

(12M) The provisions of section 148 shall not apply on import of following goods for a period of one hundred and eighty days starting from the 14th day of May, 2021, namely:—

S.No.	Description	PCT Code
(1)	(2)	(3)
1.	- Oxygen	2804.4000
2.	- - - Other (Oxygen Cylinders)	7311.0090
3.	- - - For Cryogenic (Tanks/Vessels)	7311.0030
4.	Oxygen Concentrators / Generators / Manufacturing Plants of all specifications and capacities.	Respective headings”;

(12N) Border sustenance markets—

(a) The provisions of section 148 shall not apply on the import of goods which takes place within the jurisdiction of Border sustenance markets specified in Table-I below:—

TABLE – I

	PCT Heading
1.	07011000	-SEED (Potatoes)
2.	07020000	TOMATOES, FRESH OR CHILLED.
3.	07031000	-ONIONS AND SHALLOTS
4.	07032000	-GARLIC
5.	07049000	-OTHERS which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
6.	07061000	-CARROTS AND TURNIPS
7.	07070000	CUCUMBERS AND GHERKINS FRESH OR CHILLED.
8.	07081000	-PEAS (PISUM SATIVUM)
9.	07082000	-BEANS (VIGNA SPP., PHASEOLUS SPP.)
10.	07089000	-OTHER LEGUMINOUS VEGETABLES
11.	07131000	- Peas (Pisum sativum)
12.	07132010	Grams (Dry/Whole)


	PCT Heading
13.	07132090	---other- which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
14.	07133100	-- Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) Wilczek
15.	07133200	-- small red (Adzuki) beans (Phaseolus or Vigna angularis)
16.	07133300	Kidney beans including white beans
17.	07133400	-- Bambara – vigna subteranea or vaahdzeia subterrea
18.	07133500	- - Cow peas (Vigna unguiculata)
19.	07133990	-- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
20.	07134010	- Lentils (Dry Whole)
21.	07135000	- Broad beans (Vicia faba var. major) and horse beans (Vicia faba var. equina, Vicia faba var. minor)
22.	07136000	- Pigeon peas (cajanus cajan)
23.	07139090	- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
24.	09051000	Vanilla (Neither crushed nor ground)
25.	09061100	Cinnamon
26.	09061900	Other (Cinnamon And Cinnamon Tree Flowers)
27.	09071000	- - Neither crushed nor ground (Cloves)
28.	09072000	- - Crushed or ground (Cloves)
29.	09081100	- - Neither Crushed nor ground (Nutmeg)
30.	09081200	- - Crushed or ground (Nutmeg)
31.	09082100	- - Neither crushed nor ground (Maze)
32.	09082200	- - Crushed or ground (Maze)
33.	09083110	- - - Large (Cardammoms)
34.	09083120	- - - Small (Cardammoms)
35.	09083200	- - Crushed or ground (Cardammoms)
36.	09092100	- - Neither crushed nor ground (Coriander)
37.	09092200	- - Crushed or ground (Coriander)
38.	09093100	- - Neither crushed nor ground (Seeds of Cumins)
39.	09093200	- - Crushed or ground (Seeds of Cumins)
40.	09096100	- - Neither crushed nor ground (Seeds of Anise, Badian, Caraway, Fennel etc)
41.	09096200	- - Crushed or ground (Seeds of Anise, Badian, Caraway, Fennel etc)
42.	09109910	- - - THYME; BAY LEAVES
43.	10031000	Barley (Seeds)
44.	10039000	Other (Barley)
45.	12060000	Sunflower seeds ,whether or not broken
46.	12129200	Locust beans
47.	12130000	Cereal straws and husks
48.	15161000	Animal Fats and Oil and their fractions
49.	15162010	Vegetable Fats and their fractions
50.	15162020	Vegetable Oils and their fractions
51.	82089010	- - - Knives and cutting blades for paper and paper board
52.	04011000	-OF A FAT CONTENT, BY WEIGHT, NOT EXCEEDING 1 % (Milk and Cream)
53.	04012000	-OF A FAT CONTENT, BY WEIGHT, EXCEEDING 1 % BUT NOT EXCEEDING 6 % (Milk and Cream)


	PCT Heading
54.	04014000	- Of a fat content, by weight, exceeding 6 % but not exceeding 10% (Milk and Cream)
55.	04015000	- Of a fat content, by weight, exceeding 10 % (Milk and Cream)
56.	07039000	-LEEKS AND OTHER ALLIACEOUS VEGETABLES
57.	07041000	-CAULIFLOWERS AND HEADED BROCCOLI
58.	07042000	-BRUSSELS SPROUTS
59.	07051100	- - CABBAGE LETTUCE (HEAD LETTUCE)
60.	07051900	- - OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
61.	07052100	- - WITLOOF CHICORY (CICHORIUM INTYBUS VAR.FOLIOSUM)
62.	07052900	- - OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
63.	07069000	-OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
64.	07096000	Fruits of the genus Capsicum or of the genus Pimenta
65.	08042000	Figs
66.	08061000	-FRESH (Grapes)
67.	08062000	---DRIED (Grapes)
68.	08071100	- - WATERMELONS
69.	08071900	- - OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
70.	08081000	-APPLES
71.	09021000	Green Tea
72.	09022000	Other Green Tea
73.	09101200	- - Crushed or ground (Ginger)
74.	09103000	-TURMERIC (CURCUMA)
75.	09109990	- - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
76.	17021110	Lactose (Sugar )
77.	17021120	- - - Lactose syrup
78.	17021900	- - OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
79.	17029020	- - - CARAMEL
80.	23040000	OIL-CAKE AND OTHER SOLID RESIDUES, WHETHER OR NOT GROUND OR IN THE FORM OF PELLETS, RESULTING FROM THE EXTRACTION OF SOYA BEAN OIL.
81.	23099000	Other (animal feed)
82.	52042010	--- FOR Sewing (Thread)
83.	52042020	For embroidery (Thread)


	PCT Heading
84.	82011000	- Spades and shovels
85.	82055900	Other (Tools for masons, watchmakers, miners and hand tools nes)
86.	82083000	- For kitchen appliances or for machines used by the food industry
87.	82089090	- - - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
88.	04031000	-YOGURT
89.	07019000	Other (Potatoes)
90.	07104000	- Sweet corn
91.	07109000	- Mixtures of vegetables
92.	08041010	Fresh (Dates)
93.	08041020	Dried (Dates)
94.	08091000	-APRICOTS
95.	08092100	- - Sour cherries (Prunus cerasus)
96.	08092900	- - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
97.	08093000	-PEACHES, INCLUDING NECTARINES
98.	08094000	-PLUMS AND SLOES
99.	08101000	Strawberries
100.	08105000	Kiwi Fruit
101.	09101100	- - Neither crushed nor ground (Ginger)
102.	10011900	Other (Durum wheat (excl. seed for sowing))
103.	10019900	Other (Wheat and meslin (excl. seed for sowing, and durum wheat))
104.	11010010	Of Wheat (Flour)
105.	11010020	Of Meslin (Flour)
106.	19021920	- - - VERMACELLI
107.	19059000	Other (Packed Cake)
108.	20071000	Homogenised perparations
109.	20079100	Citrus Fruit
110.	20079900	Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
111.	34013000	-ORGANIC SURFACE-ACTIVE PRODUCTS AND PREPARATIONS FOR WASHING THE SKIN, IN THE FORM OF LIQUID OR CREAM AND PUT UP FOR RETAIL SALE, WHETHER OR NOT
		CONTAINING SOAP
112.	34022000	- Preparations put up for retail sale
113.	34029000	---- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
114.	69111090	Others (Tableware and kitchenware of porcelain or china)
115.	69119000	Other (Household articles nes & toilet articles of porcelain or china)
116.	70134900	Other (Glassware for table or kitchen purposes (excl. glass having a linear c)
117.	70139900	Other (Glassware nes (other than that of 70.10 or 70.18))
118.	82159910	- - - Spoons
119.	82159990	Other (Tableware articles not in sets and not plated


	PCT Heading
		with precious meta)l
120.	87120000	Bicycles and other cycles (including delivery tricycles), not motorised.
121.	96170010	- - - Vacuum flasks
122.	96170020	- - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets

(b) The provisions of section 154 shall not apply to the export of goods which takes place within the jurisdiction of Border sustenance markets specified in Table - II below:—

TABLE-II

Sr.#	PCT Heading	Description
1.	02012000	Other cuts with bone in (Meat of bovine animals, fresh or chilled)
2.	02013000	Boneless (Meat of bovine animals, fresh or chilled)
3.	02022000	Other cuts with bone in (Meat of bovine animals, frozen)
4.	02023000	Boneless (Meat of bovine animals, frozen)
5.	03021100	Fish
6.	04090000	Honey
7.	06022000	Plants
8.	07011000	-SEED (Potatoes)
9.	07019000	Other (Potatoes)
10.	07020000	TOMATOES, FRESH OR CHILLED.
11.	07031000	-ONIONS AND SHALLOTS
12.	07032000	Garlic
13.	07061000	-CARROTS AND TURNIPS
14.	07069000	-OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
15.	07070000	Cucumbers
16.	07093000	Egg Plant
17.	07096000	Fruits of the genus Capsicum or of the genus Pimenta (pepper)
18.	07099900	Others (Lady Finger)
19.	07101000	Fresh Potato
20.	07102100	Pea
21.	07103000	Spinach
22.	08031000	- Plantains (Bananas)
23.	08039000	- Other (Bananas)
24.	08041010	Fresh (Dates)
25.	08041020	Dried (Dates)
26.	08045020	--- Mangoes
27.	08052100	-- Mandarins (including tangerines and satsumas)
28.	08052910	---Kino (fresh)
29.	08061000	Grapes (Fresh)
30.	08071100	- - WATERMELONS
31.	08071900	Melons
32.	08091000	Apricots


Sr.#	PCT Heading	Description
33.	08092900	Cherries
34.	08093000	Peaches
35.	08101000	Strawberries
36.	08109010	Pomegranates
37.	08109090	Fresh fruits nes (Other)
38.	08133000	Apple
39.	09021000	Green Tea
40.	09022000	Other green tea
41.	09030000	Mate.
42.	09042110	Red Chillies (Whole)
43.	09042190	--- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
44.	09042210	Red Chillies (Powder)
45.	09042290	--- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
46.	09051000	- - Neither crushed nor ground (Vanilla)
47.	09052000	- - Crushed or ground (Vanilla)
48.	10061010	- - - SEED FOR SOWING (Rice)
49.	10061090	- - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
50.	10062000	-HUSKED (BROWN) RICE
51.	10063010	- - - BASMATI (Rice)
52.	10063090	- - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
53.	10064000	-BROKEN RICE
54.	11010010	Flour (of Wheat)
55.	12074000	- Sesamum seeds
56.	12079900	Other (hemp Seeds)
57.	12119000	Ajwain
58.	15162020	Vegetable Oils and their fractions
59.	19021920	- - - VERMACELLI
60.	19041090	Papad
61.	20071000	- Homogenised preparations
62.	20081900	--Nimko
63.	21069090	- - - OTHER (Custard Powder)
64.	23099000	Other (Animal feed)
65.	25010010	Table Salt
66.	25010020	--- Rock Salt
67.	25010030	--- Sea Salt
68.	25010090	--- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
69.	34060000	Candles
70.	36050000	Safety Match
71.	39264090	-OTHER (Plastic Articles)
72.	53101000	Woven fabrics of jute or of other textile bast fibres, unbleached


Sr.#	PCT Heading	Description
73.	53109010	- - - Jute (hessian cloth)
74.	56074100	- - Binder or baler twine
75.	56074900	- - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
76.	56075000	- Of other synthetic fibres
77.	58021100	-- Unbleached (Terry toweling in similar woven terry fabrics, of cotton)
78.	58021900	-- Other (Terry toweling In similar woven Terry fabrics, OF cotton)
79.	58022000	- Terry towelling and similar woven terry fabrics, of other textile materials
80.	58023000	- Tufted textile fabrics
81.	58043000	- Hand made lace
82.	58050000	Hand-woven tapestries of the type Gobelins, Flanders, Aubusson, Beauvais and the like, and needle-worked tapestries (for example, petit point, cross stitch), whether or not made up.
83.	58064000	- Fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)
84.	59011000	- Textile fabrics coated with gum or amylaceous substances, of a kind used for the outer covers of books or the like
85.	61119000	Mix Goods/Garments (Babies garments&clothg accessories)
86.	62031990	---OTHER (Men or Boys Suits etc)
87.	62042200	- - Of cotton
88.	62042900	- - Of other textile materials
89.	62043900	- - Of other textile materials
90.	62044210	- - - Shisha embroidered dresses
91.	62129000	-OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets
92.	63021090	-OTHER (Bed linen, Toilet linen etc)
93.	63051000	Jute Bags (of jute or of other textile bast fibres of heading 53.03)
94.	63052000	Sacks and bags, for packing of goods, of cotton
95.	63090000	Worn clothing and other worn articles
96.	69111090	Other (Tableware and kitchenware of porcelain or china)
97.	69119000	Others (Household articles nes & toilet articles of porcelain or china)
98.	70133700	Drinking glasses (excl. glasses of glass ceramics or of lead crystal a
99.	73181690	Nuts, iron or steel, nes (Others)
100.	82055900	Tools for masons, watchmakers, miners and hand tools nes (Other)
101.	82059000	Hand tools (Other, including sets of articles of two or more subheadings of this heading)
102.	82119100	- - Table knives having fixed blades
103.	82119200	- - Other knives having fixed blades
104.	82159990	Tableware articles not in sets and not plated with precious metal
105.	84485100	Needle
106.	96170010	- - - Vacuum flasks


Sr.#	PCT Heading	Description
107.	96170020	- - - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise
		Act, 2005 for Border Sustenance Markets

The exemption under this clause shall be available on the import of goods subject to following conditions, namely:—

(i) Such goods shall be supplied only within the limits of Border Sustenance Markets established in cooperation with Iran and Afghanistan;

(ii) If the goods, on which exemption under this table has been availed, are brought outside the limits of such markets, income tax shall be charged on the import value as per provisions of section 148 of this Ordinance;

(iii) Such items in case of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of income tax involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction;

(iv) The said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets; and

(v) Breach of any of the conditions specified herein shall attract relevant legal provisions of the Ordinance, besides recovery of the amount of income tax along with default surcharge and penalties involved.

(f) in clause (19), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(g) in clause (43D),—

(i) for the expression “clause (a)”, the expression “clauses (a) and (b)” shall be substituted;

(ii) the expression “w.e.f. tax year 2012” shall be omitted;

(h) in clause (43E),—

(i) for the expression “clause (a)”, the expression “clauses (a) and (b)” shall be substituted;

(ii) for the figure “3%”, the figure “3.5%” shall be substituted;

(i) after clause (43F), the following new clause shall be inserted, namely:—

“(43G) The provisions of section 153 shall not apply to commodity futures contracts listed on a Futures Exchange licensed under the Futures Market Act, 2016 (XIV of 2016).”;

(j) in clause (45), in the proviso, in paragraph (b), for the expression “; and” at the end full stop shall be substituted and thereafter the paragraph (c) shall be omitted;

(k) in clause (45A),—

(i) the expression “(a)” appearing for the first time shall be omitted;

(ii) after sub-clause (v), before the proviso, the following new explanation shall be inserted, namely:—

“Explanation.—For removal of doubt, it is clarified that the relief of reduced rate for withholding tax under clause (a) and (b) of sub- section (1) of section 153 is available only to the local sales, supplies and services made by the taxpayers of categories specified at serial no (i) to

(v) of this clause:”; and

(iii) Sub-clause (b) shall be omitted;

(l) after clause (45A), amended as aforesaid, the following new clause shall be added, namely:—

“(45B) The provisions of section 153 shall not apply on the purchase of used motor vehicles from general public.”;

(m) in clause (46AA),—

(a) for sub-clause (iv), the following shall be substituted, namely:—

“(iv) subject to fulfillment of procedure laid down in clause (12) of Part IV of Second Schedule, persons receiving payments exclusively for the supply of agriculture produce including following—

(I) fresh milk;

(II) fish by any person engaged in fish farming;

(III) live chicken, birds and eggs by any person engaged in poultry farming;

(IV) live animals by any person engaged in cattle farming;

(V) unpackaged meat; and

(VI) raw hides:

Provided that this clause shall not apply to the payments for agriculture produce which has been subjected to any process other than that which is ordinarily performed to render such produce to be fit to be taken to the market.”; and

(b) for sub-clause (v), the following shall be substituted, namely:—

“(v) companies receiving payments for the supply of electricity and gas including companies

“(79A) The provisions of clause (b) of sub-section (1) of section 153 shall not apply to payments received by National Telecommunication Corporation against provision of telecommunication services including ancillary services specified in sub- section (3) of section 41 of the Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996).”;

(u) in clause (91), in paragraph (iv), after sub-paragraph (xvi), the following new sub-paragraphs shall be added, namely:—

“(xvii) Corn harvester/corn picker and silage maker with their respective PCT heading”;

(v) in clause 95, the expression “ 231A, 231AA,” shall be omitted;

(w) clauses (101), (101A) and (101AA) shall be omitted;

(x) in clause (108), for the expression “113, 151,231A,231AA and 236P”, the expression “ 131 and 151” shall be substituted;

(y) clause (109) shall be omitted;

(z) after clause (111A), the following new clause shall be inserted, namely:—

“(111AB) The provisions of section 100BA and rule 1 of the Tenth Schedule shall not apply to non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) maintaining a Foreign Currency Value Account (FCVA) or Non-resident Pakistani Rupee Value Account (NRVA) with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan.”;

(aa) clauses (112) and (112A) shall be omitted;

(ab) for clause (114A), the following clause shall be substituted, namely:—

(ae) after clause (117), omitted as aforesaid, the following new clauses shall be added, namely:—

“(118) The provisions of withholding taxes contained in the Income Tax Ordinance, 2001 (XLIX of 2001) shall not apply to Islamic Naya Pakistan Certificates Company Limited (INPCCL) as a recipient.

(119) The provisions of section 153(1)(a) shall with effect from the first day of July, 2020 not apply to distributors, dealers, wholesalers and retailers of locally manufactured mobile phone devices as withholding agent.”;

(100) in the Third Schedule,—

(a) in Part I, in the Table, in the first column, against S. No. IV, entry (a) in the second column shall be omitted; and

(b) in Part II,—

(I) in the heading, the expression “23A” shall be omitted; and

(II) in paragraph (2), the expression “section 23A and” shall be omitted;

(101) in the Fifth Schedule, in Part II, rule 4 shall be omitted;

(102) in Seventh Schedule,—

(A) in rule 6C,—

(i) in sub-rule (1), for the expression “onwards”, the expression “ 2021” shall be substituted; and

(ii) after sub-rule (6), the following new sub-rule shall be inserted, namely:—

“(6A) For tax year 2022 onwards, the taxable income attributable to investment in the Federal Government securities shall be taxed at the rate of—

(i) 40% instead of rate provided in Division II of Part I of the First schedule if the assets to deposit ratio as on last day of the tax year is upto 40%;

(ii) 37.5% instead of rate provided in Division II of Part I of the First schedule if the assets to deposit ratio as on last day of the tax year exceeds 40% but does not exceed 50%; and

(iii) at the rates provided in Division II of Part I of the First schedule if assets to deposit ratio as on last day of the tax year exceeds 50%.”;

(B) in rule 7C, for the expression “to 2021”, the expression “and onwards” shall be substituted;

(103) in the Eight Schedule, in rule (6), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(104) in the Tenth Schedule, in rule 10, clauses (d), (f), (g), (h), (j), (m),

(r) and (s) shall be omitted;

(105) in the Eleventh Schedule,—

(a) in rule 2, in sub-rule (2), in clause (b),—

(i) for the word, “two”, the word “three” shall be substituted;

(ii) for the first proviso, the following shall be substituted, namely:—

“Provided that in case of existing incomplete projects, the estimated project life shall be treated as four years maximum from tax year 2020 through tax year 2023 and the tax payable shall be reduced by the percentage of completion up to the last day of accounting period pertaining to tax year 2019 or tax year 2020 as declared in the registration form.”; and

(iii) second proviso shall be omitted;

(b) in rule 3, in sub-rule (1),—

(i) for the expression “31st day of December, 2020, the expression “31st day of December, 2021” shall be substituted; and

(ii) in clause (a), in the proviso, for the semi colon and the word “and”, a colon shall be substituted and thereafter the following new proviso shall be added, namely:—

“Provided further that where benefit of sub-section

(3) of section 100D is required to be claimed by builder or developer, the project shall be registered latest by 30th day of June, 2021; and”;

(c) in rule 6, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:—

“Provided that profits and gains accruing from such projects in excess of ten times of tax paid under Rule (2) shall be incorporated by paying tax at the rate of 20% on profits and gains which are in excess of said limit.”;

(d) in rule 8, in clause (c), for the expression “31st day of December, 2020”, the expression “30th day of June, 2021” shall be substituted; and

(e) in rule 9, in sub-rule (1), in clause (d), in sub-clause (ii), in the proviso, for the expression “31st day of December, 2020”, the expression “31st day of December, 2021” shall be substituted; and

(106) after the Twelfth Schedule, the following new Schedules shall be added, namely:—

“THE THIRTEENTH SCHEDULE

(See section 61)

S. No.	Name
(1)	(2)
1.	any Sports Board or institution recognised by the Federal Government for the purposes of promoting, controlling or regulating any sport or game.
2.	The Citizens Foundation.
3.	Fund for Promotion of Science and Technology in Pakistan.
4.	Fund for Retarded and Handicapped Children.
5.	National Trust Fund for The Disabled.
6.	Fund for Development of Mazaar of Hazarat Burri Imam.


S. No.	Name
(1)	(2)
7.	Rabita-e-lslami's Project for printing copies of the Holy Quran.
8.	Fatimid Foundation, Karachi.
9.	Al-Shifa Trust.
10.	Society for the Promotion of Engineering Sciences and Technology in Pakistan.
11.	Citizens-Police Liaison Committee, Central Reporting Cell, Sindh Governor House, Karachi.
12.	ICIC Foundation.
13.	National Management Foundation.
14.	Endowment Fund of the institutions of the Agha Khan Development Network (Pakistan listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network.
15.	Shaheed Zulfigar Ali Bhutto Memorial Awards Society.
16.	Iqbal Memorial fund.
17.	Cancer Research Foundation of Pakistan, Lahore. ,
18.	Shaukat Khanum Memorial Trust, Lahore.
19.	Christian Memorial Hospital, Sialkot.
20.	National Museums, National Libraries and Monuments or institutions declared to be National Heritage by the Federal Government.
21.	Mumtaz Bakhtawar Memorial Trust Hospital, Lahore.
22.	Kashmir Fund for Rehabilitation of Kashmir Refugees and Freedom Fighters.
23.	Institutions of the Agha Khan Development Network (Pakistan) listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network.
24.	Azad Kashmir President's Mujahid Fund,1972.
25.	National Institute of Cardiovascular Diseases, (Pakistan) Karachi.
26.	Businessmen Hospital Trust, Lahore.
27.	Premier Trust Hospital, Mardan.
28.	Faisal Shaheed Memorial Hospital Trust, Gujranwala.
29.	Khair-un-Nisa Hospital Foundation, Lahore.
30.	Sind and Balochistan Advocates' Benevolent Fund.
31.	Rashid Minhas Memorial Hospital Fund.
32.	Any relief or welfare fund established by the Federal Government.
33.	Mohatta Palace Gallery Trust.
34.	Bagh-e-Quaid-e-Azam project, Karachi.
35.	Any amount donated for Tameer-e-Karachi Fund.
36.	Pakistan Red Cres-cent Society.
37.	Sank of Commerce and Credit International Foundation for Advancement of Science and Technology.
38.	Federal Board of Revenue Foundation.
39.	The Indus Hospital, Karachi.
40.	Pakistan Sweet Homes Angels and Fairies Place.
41.	Al-Shifa Trust Eye Hospital.
42.	Aziz Tabba Foundation.
43.	Sindh Institute of Urology and Transplantation,SIUT Trust and Society for the Welfare of SIUT.
44.	Sharif Trust.
45.	The Kidney Centre Post Graduate Institute.
46.	Pakistan Disabled Foundation.
47.	Sardar Trust Eye Hospital, Lahore.
48.	Supreme Court of Pakistan — Diamer Bhasha & Mohmand Dams — Fund.
49.	Layton Rahmatullah Benevolent Trust (LRBT).
50.	Akhuwat.


S. No.	Name
(1)	(2)
51.	The Prime Minister's COVIE)-19 Pandemic Relief Fund-2020.
52.	Ghulam Ishaq Khan Institute of Engineering Sciences and Technology (GIKI).
53.	Lahore University of Management Sciences.
54.	Dawat-e-Hadiya, Karachi.
55.	Baitussalam Welfare Trust.
56.	Patients' Aid Foundation.
57.	Alkhidmat Foundation.
58.	Alamqir Welfare Trust International.
59.	Prime Minister's Special Fund for victims of terrorism.
60.	Chief Ministers(Punjab) Relief Fund for Internally Displaced Persons (1DPs) of KPK.
61.	Prime Ministers Flood Relief Fund 2010 and Provincial Chief Ministers Relief Funds for victims of flood 2010.
62.	Waqf for Research on Islamic History, Art and Culture, Istanbul.

Provided that the Federal Government shall have the power to add, amend or omit any entry in this Schedule.”;

FOURTEENTH SCHEDULE

(See section 100E)

RULES FOR COMPUTATION OF PROFIT AND GAINS FOR SMALL AND MEDIUM ENTERPRISES

1. Application.—These rules shall apply to small and medium enterprises as defined in Clause (59A) of Section 2 of the Ordinance.

2. Registration.—Small and medium enterprise shall be required to register with FBR on its Iris web portal or Small and Medium Enterprises Development Authority on its SME registration portal (SMERP).

3. Categories and tax rates.—There shall be following two categories of small and medium enterprises and tax on their taxable income shall be computed at the tax rates given in the table below, namely:—

Sr. No.	Category	Turnover	Rates
(1)	(2)	(3)	(4)
1.	Category-1	Where annual business turnover does not exceed Rupees 100 million	7.5% of taxable income
2.	Category-2	Where annual turnover exceeds Rupees 100 Million but does not exceed Rupees 250 Million	15% of taxable income

4. Option for Final Tax Regime.—(1) The small and medium enterprises may opt for taxation under final tax regime at the rates given in the table below:

Sr. No.	Category	Turnover	Rates
(1)	(2)	(3)	(4)
1.	Category-1	Where annual business turnover does not exceed Rupees 100 million	0.25% of gross turnover
2.	Category-2	Where annual business turnover exceeds Rupees 100 million but does not exceed Rupees 250 million	0.5% of gross turnover

(2) Option under sub-rule (1) of this rule shall be exercised at the time of filing of return of income and option once exercised shall be irrevocable for three tax years.

(3) The provisions of section 177 and 214C shall not apply to SME who opts for taxation under sub-rule (1) of this rule.

5. Audit.—(1) SMEs who opt for taxation under normal law under rule 3 may be selected for tax audit through risk based parametric computer ballot under section 214C of the Ordinance if its tax to turnover ratio is below tax rates given in rule 4 of these rules.

(2) The cases selected under sub-rule (1) of this rule shall not exceed 5% of the total population of SMEs whose tax to turnover ratio is below tax rates given in rule 4 of these rules.

6. Exports.—The export proceeds of SMEs shall be subject to tax as per rates prescribed in Rule (4) under final tax regime.”;

7. Exclusion from Minimum Tax on Turnover.—The provisions of section 113 of the Ordinance shall not apply to SMEs.

8. Tax on Supply of Goods.—The tax deductible under clause (a) of sub-section (1) of section 153 shall not be minimum tax where payments are received on sale or supply of goods by SMEs.

9. Provisions of Ordinance to apply.—The other provisions of the Ordinance shall apply mutatis mutandis to the SMEs.”.

8. Amendments of the Federal Excise Act, 2005.—In the Federal Excise Act, 2005, the following further amendments shall be made, namely:”

(1) in section 4, 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 the approval under this sub-section shall not be required if revised return is filed within sixty days of filing of the original return and either the duty payable as per the revised return is more than the amount paid or the refund claimed therein is less than the amount as claimed, under the return sought to be revised.”;

(2) in section 14, after sub-section (3), the following new sub-section

(4) shall be added, namely:–

“(4) The provision of sub-section (2) shall mutatis mutandis apply regarding assistance in collection and recovery of duties in pursuance of a request from a foreign jurisdiction under a tax treaty, a multilateral convention, and inter-governmental agreement or similar agreement or mechanism as the case may be.”;

(3) after section 45A, the following new section 45AA shall be inserted, namely:—

“45AA. Licensing of brand name.—(1) Manufacturers of the specified goods shall be required to obtain brand licence for each brand or stock keeping unit (SKU) in such manner as may be prescribed by the Board.

(4) in section 47A,—

(i) in the title, after the word “information”, the words “or assistance in recovery of duties” shall be inserted;

(ii) after sub-section (1), the following new sub-section (1A) shall be inserted, namely:—

Government, subject to such limitations and conditions an may be specified by the Board.”; and

(iii) after sub-section (2), the following new sub-section (3) shall be added, namely:—

“(3) The Federal Government may enter into a bilateral or multilateral convention, and inter-governmental agreement or similar agreement or mechanism for assistance in the recovery of duties”;

(5) in section 49, the existing sub-section shall be renumbered as sub- section (1) and thereafter the following new sub-section shall be added, namely:—

“(2) The Board may authorize and prescribe the manner in which fee and service charges collected under sub-section (1) shall be expended.”;

(6) in the First Schedule,—

(a) in Table-1, in column (1),—

(i) S. No. 1, 2, 57 and 58 and entries relating thereto in columns (2), (3) and (4) shall be omitted;

(ii) after serial number 8b, the following new serial numbers and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely:—

8c.

Tobacco mixture in an electrically heated tobacco product by whatever name called, intended for consumption by using a tobacco heating system without combustion

2403.9990

Rupees five thousand two hundred per kg”;

(iii) against S. No. 55, in column (2), after the figure “87.02”, the expression “and till the 30th day of June, 2026 electric vehicles (4 wheelers)” shall be inserted;

(iv) against serial No. 55B, in column (2),—

(a) after the figure “87.02”, the expression “and till the 30th day of June, 2026 electric vehicles (4 wheelers)” shall be inserted;

(b) against sub-serial (a) in column (2), in column (4), for the expression “2.5%”, the expression “0%” shall be substituted;

(c) against sub-serial (b) in column (2), in column (4), for the expression “5%”, the expression “2.5%” shall be substituted; and

(d) against sub-serial (c) in column (2), in column (4), for the expression “7.5%”, the expression “5%” shall be substituted;

(v) against serial number 56, in column (3), for the figure “5502.0090”, the figure “5502.9090” shall be substituted;

(b) in Table II,—

(i) in the heading of column (2), for the word “Goods”, the word “Services” shall be substituted;

(ii) against serial number 6, in column (4), for the word “seventeen”, the word “sixteen” shall be substituted;

(iii) after S. No. 6, in column (1) and entries relating thereto in columns (2), (3) and (4), the following new S. No. shall be added, namely:—

“6A.

Following telecommunication services:

(a) Mobile phone call, if call duration exceeds five minutes;

Respective sub- heading of 98.12

Seventy five paisa per call in addition to the rates of duty specified under Serial No.6

(iv) against serial number 8, in column (2), after the word “companies” occurring for the first time, the words “excluding Merchant Discount Rate (MDR) for accepting digital payment” shall be inserted;

(7) in the Second Schedule, S. No. 1, 2 and 4 in column (1) and entries relating thereto in columns (2) and (3) shall be omitted; and

(8) in the Third Schedule, in Table-I, after S. No. 23, in column (1), the following new S. Nos. and entries relating thereto in columns

(2) and (3) shall be added, namely:—


“24.	The following goods, when supplied within the limits of the Border Sustenance Markets, established in cooperation with Iran and Afghanistan:
	(i) Animal Fats and Oil and their fractions	1516.1000
	(ii) Vegetable Fats and their fractions	1516.2010
	(iii) Vegetable Oils and their fractions	1516.2020
	Provided that, such items in case of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of duty involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction: Provided further that, the said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets.
25.	Import and supply of raw materials, components, parts and plant and machinery by registered persons authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions.”	Respective headings

(9) Fourth Schedule shall be omitted;

9. Amendment of the Public Finance Management Act, 2019.- In the Public Finance Management Act, 2019 (V of 2019), in section 30, after sub-section (2), the following new sub-section (3), shall be inserted, namely:—

“(3) The Finance Division shall exempt “Self Accounting Entities (SAEs)” from adoption of New Accounting System of ASSAAN Assignment Account.

THE FIRST SCHEDULE

[see section 3(35)]

In the Customs Act, 1969 (IV of 1969), in the First Schedule, for the corresponding entries against “PCT Code”, "Description" and "CD%" specified in columns (1), (2), (3) and (4) appearing in chapter 1 to 99, the following corresponding entries relating to “PCT Code”, "Description" and "CD%" shall be substituted, namely:—

“2106.9030	- - - Flavouring powders for preparation of food	11
	- - - Rock salt:
2501.0021	- - - - Himalayan rock salt	20
2501.0029	- - - - Other	20
2502.0000	Unroasted iron pyrites.	0
2503.0000	Sulphur of all kinds, other than sublimed sulphur, precipitated sulphur and colloidal sulphur.	0
2504.9000	- Other	0
2505.9000	- Other	0
2508.1000	- Bentonite	0
2509.0000	Chalk.	0
2510.1000	- Unground	0
2510.2000	- Ground	0
2513.2020	- - - Garnet natural	0
2517.1000	- Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete aggregates, for road metalling or for railway or other ballast, shingle and flint, whether or not heat- treated	0
2519.1000	- Natural magnesium carbonate (magnesite)	0
2519.9090	- - - Other	0
2520.1010	- - - Gypsum	0
2520.1020	- - - Anhydrite	0
2524.9000	- Other	11
2525.1000	- Crude mica and mica rifted into sheets or splittings	0
2525.2000	- Mica powder	0
2525.3000	- Mica waste	0
2528.0000	Natural borates and concentrates thereof (whether or not calcined), but not including borates separated from natural brine; natural boric acid ^{containing not more than 85 % of H}3^BO3 ^calculated^{on the dry weight.}	0
2529.2100	- - Containing by weight 97 % or less of calcium fluoride	0
2529.2200	- - Containing by weight more than 97 % of calcium fluoride	0
2529.3000	- Leucite; nepheline and nepheline syenite	0
2530.1000	- Vermiculite, perlite and chlorites, unexpanded	0
2530.2000	- Kieserite, epsomite (natural magnesium sulphates)	0
2530.9010	- - - Natural manganese dioxide	0
2530.9020	- - - Zirconium silicate	0
2530.9030	- - - Earth colours	0
2530.9090	- - - Other	3
2619.0000	Slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel.	0
2706.0090	- - - Other	3
2707.9100	- - Creosote oils	3
2710.1210	- - - Motor spirit	11
2710.1240	- - - White spirit	0
2710.1250	- - - Solvent oil (non-composite)	11


2712.2000	- Paraffin wax containing by weight less than 0.75 % of oil	0
2714.9000	- Other	0
2801.2000	- Iodine	0
2801.3000	- Fluorine; bromine	0
2803.0090	- - - Other	16
2804.1000	- Hydrogen	3
2804.5000	- Boron; tellurium	0
2804.6100	- - Containing by weight not less than 99.99 % of silicon	0
2804.6900	- - Other	0
2804.7000	- Phosphorus	0
2804.8000	- Arsenic	0
2804.9000	- Selenium	0
2806.2000	- Chlorosulphuric acid	3
2810.0010	- - - Oxides of boron	3
2810.0020	- - - Boric acid	3
2811.1100	- - Hydrogen fluoride (hydrofluoride acid)	0
2811.1200	- - Hydrogen cyanide (hydrocyanic acid)	0
2811.1920	- - - Phosphorous acid hypo phosphoric acid	0
2811.1990	- - - Other	0
2811.2910	- - - Sulphurous acid gas	0
2811.2990	- - - Other	0
2812.1100	- - Carbonyl dichloride (phosgene)	0
2812.1200	- - Phosphorus oxychloride	0
2812.1300	- - Phosphorus trichloride;	0
2812.1400	- - Phosphorus pentachloride	0
2812.1500	- - Sulphur monochloride	0
2812.1600	- - Sulphur dichloride	0
2812.1700	- - Thionyl chloride	0
2812.1910	- - - Arsenic trichloride	0
2812.1990	- - - Other	0
2812.9000	- Other	0
2813.1000	- Carbon disulphide	0
2813.9000	- Other	0
2815.2000	- Potassium hydroxide (caustic potash)	0
2815.3000	- Peroxides of sodium or potassium	0
2816.1010	- - - Magnesium hydroxide	0
2816.1090	- - - Other	0
2816.4000	- Oxides, hydroxides and peroxides of strontium or barium	0
2821.1020	- - - Iron hydroxides	0
2821.2000	- Earth colours	0
2827.3200	- - Of aluminium	0
2827.4100	- - Of copper	0
2827.4900	- - Other	0
2827.5100	- - Bromides of sodium or of potassium	0
2827.5900	- - Other	0
2827.6000	- Iodides and iodide oxides	0
2833.1100	- - Disodium sulphate	11
2833.2500	- - Of copper	0
2833.2700	- - Of barium	0
2833.2940	- - - Of zinc	0
2833.2990	- - - Other	0
2835.3900	- - Other	0
2836.9930	- - - Bicarbonate of ammonium	0
2837.1100	- - Of sodium	0


2844.1000	- Natural uranium and its compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing natural uranium or natural uranium compounds	0
2844.2000	- Uranium enriched in U 235 and its compounds; plutonium and its compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing uranium enriched in U 235, plutonium or compounds of these products	0
2844.3000	- Uranium depleted in U 235 and its compounds; thorium and its compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing uranium depleted in U 235, thorium or compounds of these products	0
2844.4000	- Radioactive elements and isotopes and compounds other than those of subheading 2844.10, 2844.20 or 2844.30; alloys, dispersions (including cermets), ceramic products and mixtures containing these elements, isotopes or compounds; radioactive residues	0
2844.5000	- Spent (irradiated) fuel elements (cartridges) of nuclear reactors	0
2845.1000	- Heavy water (deuterium oxide)	0
2845.9000	- Other	0
2901.1010	- - - Butane, pentane and hexane	0
2901.1090	- - - Other	0
2901.2200	- - Propene (propylene)	0
2901.2910	- - - Heptenes	0
2901.2990	- - - Other	0
2902.1100	- - Cyclohexane	0
2902.1920	- - - Limonene(Dipentene)	0
2902.1990	- - - Other	0
2902.2000	- Benzene	0
2902.3000	- Toluene	0
2902.4200	- - m-Xylene	0
2902.4300	- - p-Xylene	0
2902.4400	- - Mixed xylene isomers	0
2902.5000	- Styrene	0
2902.6000	- Ethylbenzene	0
2902.7000	- Cumene	0
2902.9010	- - - Naphthalene	0
2902.9090	- - - Other	0
2903.9200	- - Hexachlorobenzene (ISO) and DDT (ISO) (clofenotane (INN), 1,1,1- trichloro-2,2-bis(p-chlorophenyl)ethane)	0
2904.1010	- - - Benzene sulphonic acid	0
2904.3600	- - Perfluorooctane sulphonyl fluoride	0
2911.0000	Acetals and hemiacetals, whether or not with other oxygen function, and their halogenated, sulphonated, nitrated or nitrosated derivatives.	0
2915.2100	- - Acetic acid	0
2915.2400	- - Acetic anhydride	3
2915.3920	- - - Amyl acetate	0
2915.4000	- Mono- , di- or trichloroacetic acids, their salts and esters	0
2915.5000	- Propionic acid, its salts and esters	0
2915.6010	- - - Butyric acid	0
2915.6020	- - - Salts and ester of butyric acid	0
2915.6030	- - - Salts and ester of valeric acid	0
2915.6090	- - - Other	0
2915.7090	- - - Other	0
2915.9000	- Other	0
2916.1600	- - Binapacryl (ISO)	3
2916.3990	- - - Other	3
2917.1110	- - - Oxalic acid	0
2918.2290	- - - Other	3


2918.2900	- - Other	3
2921.4510	- - - Sodium naphthionate	0
2923.1000	- Choline and its salts	0
2923.2000	- Lecithins and other phosphoaminolipids	0
2923.3000	-Tetraethylammonium perfluorooctane sulphonate	0
2923.4000	- Didecyldimethylammonium perfluorooctane sulphonate	0
2923.9010	- - - Betaine	0
2923.9090	- - - Other	0
2929.9020	- - - N,N-Dialkyl(methyl, ethyl, n-propyl, or isopropyl) phosphoramidic dihalides	0
2929.9030	- - - Dialkyl(methyl, ethyl, n-propyl or isopropyl)N,N-dialkyl (methyl, ethyl, n-propyl or isopropyl)phosphoramidates	0
2929.9090	- - - Other	0
2931.3920	- - - O-Alkyl ( < C10, including cycloalkyl)N,N-dialkyl (methyl, ethyl, n-propyl or isopropyl) phosphoramidocyanidates	0
2933.4100	- - Levorphanol (INN) and its salts	0
2933.7990	- - - Other	0
2933.9100	- - Alprazolam (INN), camazepam (INN), chlordiazepoxide (INN), clonazepam (INN), clorazepate, delorazepam (INN), diazepam (INN), estazolam (INN), ethyl loflazepate (INN), fludiazepam (INN), flunitrazepam (INN), flurazepam (INN), halazepam (INN), lorazepam (INN), lormetazepam (INN), mazindol (INN), medazepam (INN), midazolam (INN), nimetazepam (INN), nitrazepam (INN), nordazepam (INN), oxazepam (INN), pinazepam (INN), prazepam (INN), pyrovalerone (INN), temazepam (INN), tetrazepam (INN) and triazolam (INN);salts thereof	0
2933.9200	- - Azinphos-methyl (ISO)	0
2934.1090	- - - Other	0
2935.1000	- N-Methylperfluorooctane sulphonamide	0
2935.2000	- N-Ethylperfluorooctane sulphonamide	0
2935.3000	- N-Ethyl-N-(2-hydroxyethyl) perfluorooctane sulphonamide	0
2935.4000	- N-(2-Hydroxyethyl)-N-methylperfluorooctane sulphonamide	0
2935.5000	- Other perfluorooctane sulphonamides	0
2939.6900	- - Other	0
2939.7900	- - Other	0
2939.8090	- - - Other	0
2940.0000	Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructose; sugar ethers, sugar acetals and sugar esters, and their salts, other than products of heading 29. 37, 29. 38 or 29.39.	3
2941.3000	- Tetracyclines and their derivatives; salts thereof	3
2941.4000	- Chloramphenicol and its derivatives; salts thereof	3
2941.9020	- - - Gramicid trycidine	0
2941.9030	- - - Thricin	0
2941.9070	- - - Ingredients for pesticides	0
2942.0000	Other organic compounds.	0
3002.2090	- - - Other	0
3002.3000	- Vaccines for veterinary medicine	0
3002.9030	- - - Saxitoxin	3
3002.9040	- - - Ricin	3
3005.1010	- - - Surgical tape in jumbo rolls	11
3005.1090	- - - Other	11
3005.9090	- - - Other	11
3006.1090	- - - Other	3
3102.5010	- - - Crude	0
3105.5100	- - Containing nitrates and phosphates	0

ISLAMABAD, WEDNESDAY, JUNE 30, 2021

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

“12A. Power to appoint or licence common warehouses.—

“Table-4

“THIRTEENTH SCHEDULE”

Minimum production of steel products.—

Table

“230I. Directorate General of Compliance Risk Management.—

“TABLE

“Division VIII

TABLE

“Division IVA Exports of Services

“TABLE

“DIVISION IV

TABLE

TABLE

“DIVISION XV

AXB/C

TABLE – I

TABLE-II

“THE THIRTEENTH SCHEDULE

FOURTEENTH SCHEDULE

RULES FOR COMPUTATION OF PROFIT AND GAINS FOR SMALL AND MEDIUM ENTERPRISES