Further to amend the tax laws:
WHEREAS it is expedient further to amend certain laws relating to taxes and duties and for the matters connected therewith and ancillary thereto;
It is hereby enacted as follows: -
1. Short title and commencement. ? (1) This Act shall be called the Finance Supplementary (Second Amendment) Act, 2019.
(2) It shall come into force at once unless otherwise provided in any of the provisions of this Act.
2. Amendment of Customs Act, 1969 (IV of 1969). ? In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made which shall come into force at once except clause 2 (2) (ii) which shall take effect from thirty first day of March, 2019, namely: -
(1) In the First Schedule, in chapter 99,in sub-chapter-VII, in column(1), for the PCT code 9925 and the entries relating thereto in columns (2) and (3), the following shall be substituted, namely: -
"9925 (A) Artificial kidneys, hemodialysis machines, hemodialyzers, A.V. fistula needles, hemodialysis fluids and powder, blood tubing tines for dialysis, reverse osmosis plants for dialysis, double lumen catheter for dialysis, catheters for renal failure patients, peritoneal dialysis solution and cardiac 0"; and catheters.
(B) Following items and appliances for Ostomy use:-
1. Baseplate/Stoma Wafer/Flange.
2. Ostomy (Colostomy/Ileostomy/ Urostomy) bags(All type)
3. Ostomy (Colostomy/Ileostomy/ Urostomy) Paste
4. Ostomy (Colostomy/Ileostomy/ Urostomy) Belt
5. Ostomy (Colostomy/Ileostomy/ Urostomy) Deodorizers
6. Ostomy (Colostomy/ Ileostomy/ Urostomy) Strip Paste
7. Stoma Powder/Ostomy Powder (Colostomy/Illeostomy/Urostomy Powder/ Ileostomy/Urostomy Powder)
8. Ostomy (Colostomy/Ileostomy/ Urostomy) Skin Barrier Spray and Wipe
9. Ostomy (Colostomy/Ileostomy/ Urostomy) Adhesive Remover Spray and Wipe.
11. Ostomy (Colostomy/Ileostomy/ Urostomy) Mouldable Ring
12. Ostomy (Colostomy/Ileostomy/ Urostomy) Elastic Tape
13. Ostomy (Colostomy/Ileostomy/ Urostomy) Barrier Cream
14. Ostomy (Colostomy/Ileostomy/ Urostomy) Protective Sheets
15. Ostomy (Colostomy/Ileostomy/ Urostomy) Cap
16. Ostomy (Colostomy/Ileostomy/ Urostomy) Protective Seal
17. Plastic Clips for closing the Ostomy bags.
18. Liquid washers and wipes for cleaning an washing peristomalskin
19. Night Drainage Bag
20. Cystoscope
21. Lithotripter
22. Colonoscope
23. Sigmoidoscope
24. Laparoscope
25. Suprapubic Cystostomy Set
26. Ryles Tube (Nasogastric Tube)
27. Foley's Catheter
28. Endoscope (Video Endoscopes)
29. Linear Cutter/Stapler
30. Circular Stapler
31. Right Angle Cutter/Stapler
32. Laparoscopic Hand Instruments:
a) Dissector
b) Grasper
c) Scissors
d) Clipper
e) Hook
f) Retractors
g) Needles Holders
h) Knot Pusher
i) Telescope (0o, 30o)
33. Urological Endoscopic Instruments:
(a) Resectoscope (Rotating and Fix)
(b) Optical Urethrotone
(c) Telescope (0o, 30o, 75o)
(d) Turp Resecting Loops
(2) In the Fifth Schedule, -
(i) in Part-VII, in Table-B, in column (1), the following amendments shall be made, namely: -
(a) against serial numbers 15 and 16, in column (4), for the figure "5", the figure "3", shall be substituted; and
(b) against serial number 18, in column (4), for the figure "5", the figure "0", shall be substituted.
(ii) After Part-VII, as amended aforesaid, the following new "Part-VIII", shall be added, namely: -
"Part-VIII
Imports of inputs/raw materials of Industrial Sector
TABLE
==================================================================================
S. NoDescription PCT Customs Conditions
Code Duty (%)
==================================================================================
(1) (2) (3) (4) (5)
==================================================================================
1 Footwear Sector: If imported by
manufacturers
of Footwear,
registered under
the Sales Tax
Act, 1990
==================================================================================
(i) Toluene 2902.3000 3%
(ii) Butanone (methyl ethyl
ketone) 2914.1200 3%
(iii) Other 3207.1090 3%
(iv) Other 3208.1090 20%
(v) Other 3208.9090 20%
(vi) Mould release preparations 3403.9910 3%
(vii) Shoe adhesives 3506.9110 16%
(viii) Other 3506.9190 16%
(ix) Shoe lasts 3926.9060 16%
(x) Other 4005.1090 11%
(xi) Other 4005.9900 11%
(xii) Machinery for making or 8453.2000 0%
repairing footwear
(xiii) Parts 8477.9000 0%
(xiv) Injection or
compression types 8480.7100 0%
==================================================================================
2 Tanners: If imported
by Tanners,
registered under
the Sales Tax
Act, 1990
==================================================================================
(i) Formic acid 2915.1100 16%
(ii) Other 2915.1290 3%
(iii) Other 2933.9990 11%
(iv) Synthetic organic
tanning substances 3202.1000 3%
(v) Other 3202.9090 11%
(vi) Basic dyes and preparations
based thereon 3204.1300 3%
(vii) Other 3204.9000 16%
(viii) Of a kind used in the
paper or like industries 3809.9200 11%
(ix) Of a kind used in the leather
or like industries 3809.9300 11%
(x) Acrylic binders 3906.9020 20%
(xi) Polyurethanes 3909.5000 0%
(xii) Machinery for preparing,
tanning or working hides,
skins or leather 8453.1000 0%
(xiii) Parts 8453.9000 0%
==================================================================================
3 Leather Sector: If imported by
manufacturers
of leather sector,
registered under
the Sales Tax
Act, 1990
==================================================================================
(i) Magnesium oxide 2519.9010 0%
(ii) Other 2836.9990 0%
(iii) Sodium formate 2915.1210 0%
(iv) Tanning substances,tanning
preparations based on
chromium sulphate 3202.9010 20%
(v) Disperse dyes and
preparations based thereon 3204.1100 16%
(vi) Stamping foils 3212.1000 11%
(vii) Of a kind used in the leather
or like industries 3403.1110 16%
(viii) Of a kind used in the
leather or like industries
including fat liquors 3403.9110 16%
==================================================================================
4 Gloves: If imported by
manufacturers
of Gloves,
registered under
the Sales Tax
Act, 1990
==================================================================================
(i) Latex 4002.1100 0%
(ii) Other 4002.1900 0%
(iii) Other 4016.1090 5%
(iv) Machines for reeling,
unreeling, folding, cutting or
pinking textile fabrics 8451.5000 0%
(v) Other 8452.2900 0%
(vi) Other 8477.3090 0%
(vii) Buttons 9606.2920 20%
(viii) Other 9606.2990 20%
==================================================================================
5 Furniture:
If imported
by manufacturers
of Furniture
registered
under the Sales
Tax Act, 1990
==================================================================================
Other 8465.9190 0%
==================================================================================
6 Ceramics: If imported
by manufacturers
registered under
the Sales Tax
Act, 1990
==================================================================================
(i) Vitrifiable enamels and glazes,
engobes (slips) and similar
preparations 3207.2000 3%
(ii) Containing by weight
more than 50 % of graphite or
other carbon or of a mixture
of these products 6903.1000 3%
(iii) Other 6903.2090 3%
==================================================================================
7 Diapers/Sanitary Napkins: If imported by
manufacturers
of diapers/sanitary
napkins
registered under
the Sales Tax
Act, 1990, subject
to annual quota
determination and
verification by
the Input Output
Co-efficient
Organization
(IOCO)
and certification
by the
Engineering
Development
Board.
==================================================================================
(i) Other 3506.9190 5%
(ii) Other 3906.9090 5%
(iii) Of polymers of ethylene 3920.1000 16%
(iv) Of other plastics 3921.1900 16%
(v) Of polymers of ethylene 3923.2100 5%
(vi) Weighing not more
than 25g/m2 5603.1100 11%
(vii) Weighing more than
25g/m2 but not more than
70 g/m2 5603.9200 16%
(viii) Weighing more than
70 g/m2 but not more
than 150 g/m2 5603.9300 11%
==================================================================================
8 Home Appliance Sector:
If imported by
manufacturers
of home
appliance sector,
registered under
the Sales Tax
Act, 1990, subject
to annual
quota
determination
and
verification
by the Input
Output
Co-efficient
Organization
(IOCO).
==================================================================================
(i) Cyclopentane 2902.1910 0%
(ii) Tetrafluoroethane 2903.3930 0%
(iii) Acrylonitrile butadiene
styrene (ABS) copolymers 3903.3000 0%
(iv) Other poly-ethers 3907.2000 0%
(v) Insulation tape double sided 3919.1010 0%
(vi) Adhesive tape 7607.1910 0%
(vii) Used with HCFC and
non-CFC gases 8414.3010 0%
(viii) Of machines of heading
8414.1000 and 8414.3010 8414.9010 0%
(ix) Evaporators (roll bond/fin/
tube on plate types) 8418.9910 0%
(x) Motors of an output not
exceeding 37.5 W 8501.1000 0%
(xi) Other 8501.4090 16%
(xii) Burglar or fire alarms and
similar apparatus 8531.1000 0%
(xiii) Other 9030.8900 0%
(xiv) Of a kind used in
refrigerators, deep freezers
and air conditioners 9032.1010 0%
(xv) Other 9032.1090 16%
==================================================================================
9 Infant Formula:
Imports
by manufacturers
of infant formula
milk,
registered
under the Sales
Tax Act, 1990,
subject to
annual quota
determination and
verification by
the Input Output
Co-efficient
Organization
(IOCO).
==================================================================================
Other 1901.9090 5%
==================================================================================
10 Chemical Manufacturing sector: If imported by
manufacturers
of chemicals,
registered
under the Sales
Tax Act, 1990".
==================================================================================
(i) o-Xylene 2902.4100 0%
(ii) Octanol (octyl alcohol) and
isomers thereof 2905.1600 0%
==================================================================================
11 If imported
by of PVC/
Plastic
manufacturers,
registered
under the Sales
Tax Act, 1990".
==================================================================================
Other 3812.3900 3%
==================================================================================
3. Amendments of the Sales Tax Act, 1990. ? In the Sales Tax Act, 1990, the following further amendments shall be made, namely:-
(1) after section 67, the following new section shall be inserted, namely:-
"67A. Payment of refund through promissory notes.- (1) Notwithstanding anything contained in section 67, the sales tax refunds payable under this Act may be paid through promissory notes, instead of paying sales tax refunds through cheques or electronic advice to State Bank of Pakistan, in the mode and manner and carrying such features as laid down in the Tenth Schedule to this Act.
(2) The refund under sub-section (1) shall be paid in the aforesaid manner to the claimants who opt for payment in such manner."; and
(2) in the Sixth Schedule,?
(a) in Table-1, in column (1),-
(i) against serial number 110, in column (2), after the word "Islamabad", the expression "for the period ending on the 30th June, 2023" shall be inserted;
(ii) for serial number 117 and entries relating thereto in columns
(2) and (3), the following shall be substituted, namely:?
"117 Appliances and items required for ostomy procedures as specified in the Chapter 99 of the First Schedule to the Customs Act, 1969, subject to same conditions as specified therein 99.25";
(iii) serial number 118 and entries relating thereto in columns (2) and (3), shall be omitted; and
(iv) after serial number 149 and the entries relating thereto in columns (2) and (3), the following new serial number and the entries shall be added respectively, namely:?
"150. Plant and machinery excluding Chapters 84
consumer durable goods and and 85";
office equipment as imported by
greenfield industries, intending to
manufacture taxable goods,
during their construction and
installation period subject to
conditions noted below and
issuance of exemption certificate
by the Commissioner Inland
Revenue having jurisdiction:?
Conditions:
(a) the importer is registered
under the Act on or after the first day
of July, 2019; and
(b) the industry is not established
by splitting up or reconstruction or
reconstitution of an undertaking
already in existence or by transfer
of machinery or plant from
another industrial undertaking in Pakistan
(b) in Table-3, in the Annexure, in column (1),-
(i) against serial number 7, in column (2), in the entry at serial number 1, for the word "etc", the expression ". This exemption in relation to renewable energy shall remain in force up to the 30th June, 2023" shall be substituted; and
(ii) against serial number 14A, in column (2), for the expression "etc.", the expression "as imported on or before the 30th June, 2023" shall be substituted;
(3) In the Ninth Schedule, in the Table, in column (1), for serial number 2 and entries relating thereto in columns (2), (3), (4) and (5), the following shall be substituted, namely:?
"2. Cellular mobile phones or satellite phones to be charged on the basis of import value per set, or equivalent value in rupees in case of supply by the manufacturer, at the rate as indicated against each category:--
A. Not exceeding US$ Rs. 150 Rs. 150
30 B. Exceeding US$ 30 Rs. 1,470 Rs. 1,470
but not exceeding US$ 100
C. Exceeding US$ 100 Rs. 1,870 Rs. 1,870
but not exceeding US$ 200
D. Exceeding US$ 200 Rs. 1,930 Rs. 1,930
but not exceeding US$ 350
E. Exceeding US$ 350 Rs. 6,000 Rs. 6,000
but not exceeding US$ 500
F. Exceeding US$ 500 Rs. 10,300 Rs. 10,300
"; and
(4) after the Ninth Schedule, amended as aforesaid, the following new Schedule shall be added, namely:?
"THE TENTH SCHEDULE
[See section 67A]
1. Application. This Schedule applies to the sales tax refund promissory notes to be issued in lieu of payable refunds as provided in section 67A.
2. Definitions.- In this Schedule, unless there is anything repugnant in the subject or context,?
(1) "note" or 'promissory note' means sales tax refund promissory note; and
(2) "promissory note office" or "note office" means an office established in the Board for issuance, registration, transfer, re- issuance, redemption and handling other matters in relation to the notes.
3. Issuance and printing.- (1) The promissory notes shall be issued by the Note Office in lieu of sales tax refunds as found admissible under the Sales Tax Act, 1990, to the refund claimants.
(2) The notes shall be printed by Pakistan Security Printing Corporation with security features and in the form as the Board may determine.
4. Features of promissory notes.- (1) The maturity period of the promissory notes shall be three years from the date of issuance.
(2) The promissory notes shall be issued in multiples of one hundred thousand Rupees.
(3) The promissory notes shall bear annual simple profit at ten per cent and shall be redeemable after the period of maturity.
(4) The promissory notes shall be redeemable before maturity only at the option of the Board along with simple profit payable at the time of redemption.
(5) The promissory notes shall be traded freely in the country's secondary markets.
(6) The promissory notes shall be approved security for calculating the statutory liquidity reserve.
(7) The promissory notes shall be accepted by the banks as collateral.
(8) There shall be no compulsory deduction of Zakat against the promissory notes and sahib-e-nisab may pay Zakat voluntarily according to Shariah.
5 Transfer of notes. - The notes shall be transferable only in the manner provided hereunder:-
(a) It shall be transferable by endorsement and delivery like a promissory note payable to order;
(b) no endorsement of a note shall be valid unless made by the signature of the holder or his duly constituted attorney or representative inscribed on the back of the note itself;
(c) no writing on a note shall be valid for the purpose of negotiation if such writing purports to transfer only a part of the amount denominated by the note;
(d) The note office may decline to accept a note endorsed in blank for any purpose unless the endorsement in blank is converted into that in full before presentation.
6. Payment on redemption.- (1) When a note becomes due for payment, it shall be presented at the note office by the holder.
(2) On redemption, the profit on the notes shall be paid along with the face value, in the form of a crossed cheque drawn on the State Bank of Pakistan.
(3) The cheque shall be signed by the incharge of note office and another signatory as appointed by the Board.
(4) The principal amount along with the profit shall be debited to the revenue account "B02368-Sales Tax Refund".
7. Procedure when a note is lost etc.- (1) The procedure to be followed for the issue of a duplicate note in place of a note which is claimed to have been lost, stolen, destroyed, mutilated or defaced either wholly or in part, shall, mutatis mutandis, be the same as laid out in respect of the promissory note in the Public Debt Rules, 1946.
(2) In case of an executant being unable to write, the procedure as provided in the Public Debt Rules, 1946, shall be followed.".
4. Amendment of Income Tax Ordinance, XLIX of 2001.?In the Income Tax Ordinance, 2001 (XLIX of 2001), the following further amendments shall be made which shall come into force at once except clauses 4(12)(A)(b), 4(12)(B) and 4(12)(C)(f) which shall take effect from the first day of July, 2019, namely:-
(1) in section 5A, in sub-section (1), for the expression "year 2017 and onwards", the expression "years 2017 to 2019" shall be substituted;
(2) in section 37A, in sub-section (5), for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that so much of the loss sustained on disposal of securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of securities chargeable to tax under this section shall be carried forward to the following tax year and set off only against the gain of the person from disposal of securities chargeable to tax under this section, but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first computed.";
(3) in section 49, after sub-section (4), in the proviso, for the word "licenses", the expression ", licenses and renewal of the spectrum and licenses" shall be inserted.
(4) after section 99A, the following new section shall be inserted, namely:- "99B. Special procedure for small traders and
shopkeepers.- Notwithstanding anything contained in this Ordinance, the Federal Government may, by notification in the official Gazette, prescribe special procedure for scope and payment of tax, filing of return and assessment in respect of such small traders and shopkeepers, in such cities or territories, as may be specified therein.";
(5) in section 123, after sub-section (1), the following new sub-section shall be inserted, namely:-
"(1A) Where an offshore asset of any person, not declared earlier, is discovered by the Commissioner or any department or agency of the Federal Government or a Provincial Government, the Commissioner may at any time before issuing any assessment order under section 121 or amended assessment order under section 122, issue to the person a provisional assessment order or provisional amended assessment order, as the case may be, for the last completed tax year of the person taking into account the offshore asset discovered.";
(6) in section 148, in sub-section (8), clause (a) shall be omitted;
(7) in section 165,-
(A) in sub-section (1),-
(a) for the word "monthly", wherever occurring, the word "biannual" shall be substituted;
(b) for the word "month", wherever occurring, the word "half- year" shall be substituted; and
(B) for sub-section (2), the following shall be substituted, namely:-
"(2) Every prescribed person collecting tax under Division II of this Part or Chapter XII or deducting tax under Division III of this Part of Chapter XII shall furnish statements under sub-section (1) as per the following schedule, namely:-
(a) in respect of the half-year ending on the 30th June, on or before the 31st day of July;
(b) in respect of the half-year ending on the 31st December, on or before the 31st day of January"; and
(C) after sub-section (2A), the following new sub-section shall be inserted, namely:-
"(2B) Notwithstanding anything contained in this section, the Commissioner as he deems fit, may by notice in writing, require any person, collecting or deducting tax under this Ordinance, to furnish a statement for any period specified in the notice within such period of time as may be specified in the notice.";
(8) in section 227C,-
(A) after clause (b), in the first proviso,-
(a) for clause (i), the following shall be substituted, namely,- "(i) locally manufactured motor vehicle having engine
capacity not exceeding 1300 CC; locally manufactured motorcycle, motorcycle-rikhshaw and rikhshaw; locally manufactured agricultural tractor;";
(b) in clause (ii), after the word "Pakistanis", the words "or a non-resident Pakistani citizen holding international passport" shall be inserted; and
(B) in the second proviso, in clause (ii), after the word "Pakistanis", the words "or a non-resident Pakistani citizen holding international passport" shall be inserted;
(9) section 230E shall be omitted;
(10) in section 233A, after sub-section (2), the following new sub-section shall be added, namely:-
"(3)" This section shall not apply from the first day of February, 2019.";
(11) in the First Schedule,?
(A) in Part I, in Division IIA, in the Table, in column (1),-
(a) against S. No. 1.,-
(i) in column (3), for the figure "0", the figure "4" shall be substituted; and
(ii) in columns (5) and (6), for the corresponding figures "3" and "2", the figure "4" shall be substituted; and
(b) against S. No. 2., in column (5), for the figure "1", the figure "0" shall be substituted;
(B) in Part II, in the proviso, in clause (b), 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 rate of tax on value of import of mobile phone by any person, shall be as set out in the following Table:
Table
====================================================
S.No. C & F Value of mobile Tax (in Rs.)
phone (in US Dollar) Filer Non-filer
====================================================
(1) (2) (3)
====================================================
1 Up to 30 70
2 Exceeding 30 and up to 100 730
3 Exceeding 100 and up to 200 930
4 Exceeding 200 and up to 350 970
5 Exceeding 350 and up to 500 3,000
6 Exceeding 500 5,200
====================================================
(C) in Part IV,-
(a) in Division VI, the expression "0.3% of the cash amount withdrawn for filers and" shall be omitted;
(b) in Division VIA, for the expression "0.3% of the transaction for filers and 0.6%", the expression "0.6% of the transactions" shall be substituted;
(c) in Division VII, in clause (1), in the Table, against S. No. 1 to 9, for the entries in column (4), the following shall respectively be substituted, namely,-
"Rs. 15,000
Rs. 37,500
Rs. 60,000
Rs. 150,000
Rs. 225,000
Rs. 300,000
Rs. 450,000
Rs. 600,000
Rs. 675,000
(d) in Division XI, after the Table, the following new proviso shall be added, namely:-
"Provided further that the rate for the function of marriage in a marriage hall, marquee or a community place with the total function area less than 500 square yards or, in case of a multi storied premises, with the largest total function area on one floor less than 500 square yards, shall be 5% of the bill ad valorem or Rs. 5,000 per function whichever is higher";
(12) in the Second Schedule,-
(A) in Part I,-
(a) In clause (66), after sub-clause (lxii), the following sub- clauses shall be added, namely:
"(lxiii) National Disaster Risk Management Fund. (lxiv) Deposit Protection Corporation established under sub-section (1) of section 3 of Deposit Protection Corporation Act 2016 (Act XXXVII of 2016)."; and
(b) in clause (126I), for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-
"Provided that this clause shall also apply to such undertaking set up between the 1st March, 2019 and the 30th June, 2023 for a period of five years beginning from the date such industrial undertaking is set up.";
(B) in Part III, after the omitted clause (16), the following new clause shall be inserted, namely:-
"(17) The tax on dividend income derived by a company, if the recipient of the dividend, for the tax year, has surrendered loss to or received loss from the company distributing the dividend under section 59B, shall be reduced to the extent of percentage of ordinary shareholding the recipient of dividend has in the company distributing the dividend.";
(C) in Part IV,-
(a) in clause (11A), after clause (xxx), the following sub-clauses shall be added, namely:
"(xxxi) National Disaster Risk Management Fund.
(xxxii) Deposit Protection Corporation established under sub-section (1) of section 3 of Deposit Protection Corporation Act 2016 (Act XXXVII of 2016).";
(b) after clause (38C), the following new clause shall be inserted, namely:-
"(38D) The provisions of section 151 and 153 shall not apply to the National Disaster Risk Management Fund.";
(c) after clause (81), the following new clause shall be inserted, namely:-
"(81A) The provisions of clause (a) of sub-section (1) of section 165 shall not apply to banking companies for furnishing information of taxes collected and deducted under sections 231A and 151.";
(d) after clause (95), the following new clause shall be inserted, namely,-
"(95A) The provisions of section 236A shall not apply in respect of auction of franchise rights to participating teams in a national or international league organized by any board or other organization established by the Government in Pakistan for the purposes of controlling, regulating or encouraging major games and sports recognized by the Government with effect from the first day of July, 2019.";
(e) after clause (101), the following new clause shall be inserted, namely:-
"(101A) The provision of section 231A shall not apply to a Pak Rupee account if the deposits in the account are made solely from foreign remittances credited directly into such account.";
(f) after clause (110), the following new clause shall be added, namely:-
"(111) The provisions of section 4B shall not apply to so much of the taxable income of banking company subject to reduced rate of tax at 20% under rules 7D, 7E and 7F of the Seventh Schedule for tax years 2020 to 2023.";
(13) in the Seventh Schedule,-
(A) after rule 7C, the following new rules shall be inserted, namely:- "7D. Reduced rate of tax for additional advances to micro, small and medium enterprises.- (1) The amount of interest income offered for tax arising from additional advances to micro and small enterprises, for the tax years 2020 to 2023, shall be taxed at the rate of 20% instead of the rate provided in Division II of Part I of the First Schedule:
Provided that such reduced rate of tax shall be available subject to filing of details of such advances along with gross and net margin earned from such advances.
(2) For the purpose of this rule, the terms "micro, small and medium enterprises" shall have the same meaning as provided in Prudential Regulations issued by State Bank of Pakistan.
(3) Additional advances means advances in addition to average amount of such advances made in such sector by the bank for tax year 2019.
7E. Reduced rate of tax for additional advances to low cost housing finance.- (1) The amount of interest income offered for tax arising from additional advances for low cost housing finance, for the tax years 2020 to 2023, shall be taxed at the rate of 20% instead of the rate provided in Division II of Part I of the First Schedule:
Provided that such reduced rate of tax shall be available subject to filing of details of such advances along with gross and net margin earned from such advances.
(2) For the purpose of this rule, the terms "low cost housing" shall have the same meaning as provided in Prudential Regulations issued by State Bank of Pakistan.
(3) Additional advances means advances in addition to average amount of such advances made in such sector by the bank for tax year 2019.
7F. Reduced rate of tax for additional advances as Farm Credit.- (1) The amount of interest income offered for tax arising from additional advances to Farm Credit in Pakistan, for tax years 2020 to 2023, shall be taxed at the rate of 20% instead of the rate provided in Division II of Part I of the First Schedule:
Provided that such reduced rate of tax shall be available subject to filing of details of such advances along with gross and net margin earned from such advances.
(2) For the purpose of this rule, the terms " Farm Credit" shall have the same meaning as provided in Prudential Regulations issued by State Bank of Pakistan for Agriculture Financing excluding advances made to a company as defined in section 80.
(3) Additional advances means advances in addition to average amount of such advances made in such sector by the bank for tax year 2019.".
5. Amendments of the Federal Excise Act, 2005.- In the Federal Excise Act, 2005, the following further amendments shall be made, namely:-
(1) in section 29, in sub-section (2), in clause (aa), in sub-clause (ii), for the expression "section 30", the expression "sub-section (1) of section 29" shall be substituted; and
(2) in the First Schedule,?
(a) in TABLE I, in column (1),-
(i) against serial number 55,?
(A) in column (2), after the word "above", occurring twice, the expression ", but not exceeding 3000 cc" shall be substituted; and
(B) after the word "twenty" in column (4), the expression "-five" shall be substituted; and
(ii) after serial number 55 and the entries relating thereto in columns (2), (3) and (4), amended as aforesaid, the following new serial numbers and entries relating thereto shall respectively be inserted, namely:
"55A Imported motor cars, SUVs 87.03 Thirty per
and other motor vehicles of cent
ad val. cylinder capacity of 3000cc
or above, principally
designed for the transport
of persons (other than
those of headings 87.02),
including station wagons
and racing cars of cylinder
capacity of 3000cc or above
55B Locally manufactured or 87.03 Ten per cent
assembled motor cars, ad val.".
SUVs and other motor vehicles
of cylinder capacity of 1800cc or
above, principally designed
for the transport of persons (other
than those of headings 87.02),
including station wagons
and racing cars of cylinder
capacity of 1800cc or above
5. Amendments in Finance Act, 2018, - In the Finance Act, 2018(XXX of 2018), in section 10, for the "TABLE", the following shall be substituted namely: -
"TABLE
============================================
S. No. Mobile Phones Rate of levy
having C&F Value per set in
(US Dollars) Pak Rupees
============================================
-1 -2 -3
============================================
1 Up to 30 Nil
2 Above 30 and up to 100 Nil
3 Above 100 and up to 200 500
4 Above 200 and up to 350 1500
5 Above 350 and up to 500 3500
6 Above 500 7000"
============================================
STATEMENT OF OBJECTS AND REASONS
The purpose of this bill is to give effect to the fiscal stabilization objective of the Government and shall come into force on the next day of assent given to this Act by the President of Islamic Republic of Pakistan except clause 2 (2) (ii) which shall have effect from 31st March, 2019 and clauses 4(1), 4(2), 4(12)(A)(b), 4(12)(B), 4(12)(C)(d), 4(12)(C)(f) and 4(13)(A) which shall have effect from the first day of July, 2019. (Asad Umar) Minister for Finance, Revenue and Economic Affairs