Updated: Monday May 05, 2014/AlEthnien
Rajab 06, 1435/Somavara
Vaisakha 15, 1936, at 08:43:37 PM
ACT NO. XXXI OP 1973
9th FEBRUARY, 1973
An Act to
provide for introducing a scheme
for the import of machinery and equipment on credit
for establishing certain
industrial Units and enterprises.
whereas it is expedient to provide for introducing a scheme
for the import of machinery and equipment on credit for certain industrial
units and enterprises;
It is hereby enacted as follows:---
1. Short title and commencement. — (l) This Act may be called the Pay-As-You-Earn Scheme
Act, 1973.
(2) It shall come into force at once.
2. Definitions. In this Act, unless there is anything repugnant in the
subject or context,---
(a) “Prescribed“ means prescribed by the Scheme or the
rules made under this Act and
(b) “Scheme” means the scheme brought into force under
section 3.
3. The Scheme.— (1) The Federal Government may prepare
and, by notification in the official Gazette, bring into force a scheme, to
be-known as the Pay-As-You-Earn Scheme, for the import of machinery and
equipment on credit for the establishment of an industrial unit or enterprise
and requiring that the cost of the machinery or equipment so imported, and such
other charges in foreign exchange as may be prescribed, shall be met from out
of the export earnings of such industrial unit or enterprise.
(2) The Scheme may specify, among other things, the
categories of industrial units or enterprises for the establishment of which
machinery or equipment may be imported under the Scheme, the proportion of
export earnings which may be utilized by an industrial unit or enterprise for
meeting charges in foreign exchange, the procedure for sanctioning of projects
and scrutiny of list of importable machinery, and the terms and conditions of
foreign credits.
4. Power to make rules. — (1) The Federal Government may, by notification
in the official Gazette, make rules for the administration of the Scheme.
(2) Any rules made under sub-section (1) may provide
that industrial unit or enterprise shall,---
(a) if it fails to repatriate to
(b) if the prescribed percentage of its export
earnings i» not-sufficient to meet the cost of the machinery and equipment and
the other prescribed charge in foreign exchange, be liable to pay to the
State Bank of Pakistan by way of penalty a sum not exceeding twenty seven per
cent, of the value in Pakistan rupees of the amount of foreign exchange it
fails to repatriate or, as the case may be, of the amount by which its export
earnings fall short of the aggregate of the cost and charges referred to in
clause (b).
(3) Any amount payable by an industrial unit or
enterprise as
a penalty under the rules made under sub-section (1)
shall be recoverable as an arrear of land revenue.
5. Repeal. The Pay-As-You-Earn Scheme Ordinance, 1972, is hereby
repeated.
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