7 of 92019-06-30

Finance Act, as published 30 June 2019

This is the Finance Act as it stood on 30 June 2019. It runs to 15 pages and contains 3 sections, with 0 amendment footnotes.

What this document is

Published by the Federal Board of Revenue as part of the Finance Act collection. A consolidation of this kind folds every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2019 rather than as originally enacted.

The date above was taken from the file name rather than a consolidation statement on the cover, so treat it as approximate.

The shape of this version

The operative text holds roughly 2,800 words across 3 sections.

What changed since the previous version

Against the version published 30 June 2018, this one has 13 that no longer appear.

No longer present

These appeared in the previous version and not in this one. That usually means omission by a later law, though it can also mean a heading was formatted in a way the extraction did not recognise.

section 1, Short title and commencement
section 5, Amendment of Chairman and Speaker (Salaries, Allowances and Privileges) Act, 1975 (LXXXII of 1975)
section 6, Period of applicability
section 7, Amendment of Protection of Economic Reforms Act, 1992 (XII of 1992)
section 8, Payment of tax
section 9, Currency and rate of conversion
section 10, Mobile handset levy
section 11, Foreign Assets (Declaration and Repatriation) Act, 2018
section 12, Investment in Government securities
section 13, Confidentiality
section 14, Declaration not admissible in evidence
section 15, Removal of difficulty

The source file


File name	`20193121534913781FinanceSupplementary(Amendment)Act2018.pdf`
Pages	15
Size	0.42 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	2 of 9

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The full text of this version

All 3 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.

2. Amendment o[Customs Ac(, 1969 (lV ot1969)

ln thc Crstoms Aor, 1969 (lV ol 1969), in the Fifth Schedule. the fbllo\ring tu(hcr anrendmenls shall be rnadc, namely:

(l) (r) in (olumn (2), for the leflers and word “l,EI) l”ights“. !'hc-cvcr occurring in an), fbnr, the letters and \rords ’LEI) l-iglts and Bulbs’shallbc subslituledi and

(b) in colurnr (5), for the letlers ard word “LED ligha’. the lett€rs and ,vords “LED LighLs and Bulbs”, shall be subsrituted; iD Pxd-lll ill rlrc Table, in cohrmn ( bc subs!ituted;

(b) agairst Sr No.l0?, in column (5), for the expression “20x16”, lhe txpression ’23x36“, shallbe substituted: and

(l) in Ila(-Vll, atier “Table-B”. the tullo|nrg new “1abh-C’ , shall be added, nalnely;- “’I’eble-C

(5) (1)

(e) Oth€r

TIIE GAZETTE OF PAKISTAN, EXTRA, OC].OBL]T 169 PART ( l0)

(ll) 1206.2090 (r4) PreParations based thereon p.eparations cadnrium compounds Nil arnylaceous substances the paper or like industries ll plasticizers for rubber or plastics

(24) with rnetal Reinforced only wirh textile materials more by weight ofcotton alloys

.7,70 IO,20I8 cans of carbonated sofi drinks textile mat€rial t6 Filted sith chlrin scoops ofbase metal

3. Amendmr)nt of the Sffles Tax Act, 1990

ln the Scles T&\ Act, i990, the followrng further amendments shall be made. namely:

(l) in the Sixth Sched le, cohron (2).-

(a) in enLry A, after sub-serial number 6, the following Dew sub-serial numhers shall be added, namely:- ’’7. Optical Coherence Technolos/ (OC’l) System E. OCT Catheters 9. lntravascularUltrasound(IVUS) t0. Fractional FIow Resewe (FFR/IFR) Svstem ll. lvtS/ l l’R ll’R ( arl’erer\rrd !\ire\ 12. Support Micro Catheters (Straight and Angled) 13. Drug Coated Angioplasty Balloon I4. Coronar), aud PeripheralMic.o Coils 15. Thrombectony Device 16. Ihrombus Aspiration Catheters 17. Covered Stents (Coronary/Peripheral)

PARI ll TH E GAZEITT] OF PAKISTAN. EXTRA.. OCTOBER IO. 20 IE 11t 18. Vessel Closure Devices 19. Enbolic Proteclion l)evrces 20. Rcnal Stents 21. Vena-cava Filters 22. Coronary and Peripheral Snares 23. AthereclomyDevices 24. IABP Consoles & Cathelers 25. Intracard’ac Echocardiography Machine & Catheters“;

(b) ir entry B, after sub-serial nunrber 6, the following new sub-serial nunrber shall b€ added, namely:- ’?. Wflst Bands for Radial Vessel Closure“;

(c) in entry lt. aller sub-serial number 3, the following new sub-ssrial Iutnbcrs shall be added, na:nely:- “4. Excimer Laser System with Accessorres 5. Laser Sheath, Occlusion Balloons. Dilator Sheaths (Rotation & Manual) 6. lntra Cardiac Echocardiography (JCE) System and Accessories 7. Lead Locking Devices and Accessory Kit 8. Remote EP Monitoring Device and Accessories 9. Ablation catheters 10. 3-D Cardiac Mapping System l. I Cryoballoon System and Accessories”;

(d) in entry J, atter sub-serial nurnber 5, the following ncw sub-serial numbers shall be added, narnely:-

’772 TIIE CAZE’I TE OI PAKISTAN, F-X-[RA , OCl OtsER 10.2018 IPARrl 6. Highllow. Low-Profile Percrtaneous Hea( Pump PHP Console and Calhelers. ’Ianden ’7 Hcart /’landenr Lung aDd nccessories. Ventricular Assist Device Systcnr.

(a) tlean Mate’ll

(b) llean Maic-lll

(c) Cenl.iMeg LEOV & 9 Beating Heart Surgery stabilizers Coronary Shunts l0 Miuimally invasive surgerr- equipment & InstruDrerts I l- RF n blalion eqoipment for Al (Surgical) l2 Heart l-urg Machines’’;

(e) in €ntry K, atler sub’serial number 4. the following new sub-serial numhers shall be added, narnelv: Left V€ntflcular Assist Device/Svstenr (I,VAD) and Cathctcrs 6. MitraclipTranscalheter Mitral Valvc System 7. Mitraclip Guide Catheter, Clip and Delivery Sysle’n 8. Patent Foramen Ovale (PFO) Closurc Dcvice 9. Left Atrial Appondagc (LAA) Occluder I0. Transcathercr Aortic / Ilean Valve Svstem (IAVlr[AVR) I I Cerebral Retricvable Stenrs I 2. Aorlic Stent Crafts I3. Embolizatior Coils, Delivcry System. F’ lling CoiI

P,\R]ll l’HECAZLI’tlOiPAKISIAN,FlXllRA.,OClOBER10,20lE I ,1. Abdominai Aortic Aneurysm (EVAR) System a’rd Accessories/ thoracic EVAR/ extensio 15. Inse(able Cardiac Monito. (lCM) 16. Carotid Stents 17. Vascular Clips 18. MRI Compatible Cardiac Monitor, Inlision Pu’np. Aneslhesia Machine with Accessories’’; and (0 in entry L, alter thc wod “adaptors”, at the end, the comma and rvords “. DruS Eluling Peripheral Stents” shall b€ inserledl and (B) l-able-2. in column(l).afterserial number 23, a Dew serial ’n (l) nlrmber and the entries relating thereto in columns (2) and shall be inserlcd, namely:- ‘24 LED or SMD lights E519.50t0, and bulbs m oant 8539,5020, forconservation 9405.1030 o l’ energy. and 940s.,1020“ flnd (C) in lable-3, in colu’nn (l), against serial number l5A. in column (2), after the words ‘LED lights’, wherever occurring in any form. the words “and bulbs” shall be inscrlcdt and

(l) (l). in rhe E’ghth Schcdule, in Table-1. in column

(a) for serial number 5l and entries relating thereto in oolumns (2). (r). (4) and (5), fie follo’ving shall be subst(uted, namely:- .5I LNG/RLNC 271 l.l 100 and t20/“ ll supplied to 21t0.2t00 gas transmission and dislribulion

(b) agaiDst serial nu,nbcr 56, in columns (4) ard (5), fbr the fieure ’’40“, the figure “65” shall be substituted; and

114 8 I

(c) aller serial number 57, and the entries .elnting thereto in cclumns (2), (3), (4)and (5), the followrng serial number aDd thc entries relating thereto rn columns (1), (2), (3), (4) and (5) shall be added, namcly:- ’t8. LPC 27ll.l9t0 local of such inlported supplies LPG,“,

4. Amendment of Income Tax Ordinance, 2001 XLIX of 2001

In lhe Income Ta,x Ordinance, 2001 (XLIX of 2001), the fbllowing fufther amendments shall be made and except for clause (b) of sub-seclion (6), shall be deemed to have been madc on the firsl day ofJuly, 2018, namely - ( in secti,)n 165A, in sutFsection (A) for clause (d), thc followilg shall be substrruted, narnely: ‘(.1) a list of persons receiving prolit on debt exceeding one million rupees fbr filers and live hundred thousand rupees for non-filers and tax deductions thereon during preceding fi naDcial Jear.“; and (B) clause (e) shall be oD;tted.”: in secti)n 182, in sub-section No. E, the following new S. Nos. arld the enlries relating thereto S. in colurnns (2),.(3) and (4) shall be inserted, namely:- 22’,7C shall pay the the /27C a Department percent of any reSistration oi a vehicle or vehicle or for the istration ofan im

l’^&1ll tllu GAZE’I’IE OF PAKISTAN, EXTRA. OCTOBER 10.2018 ’775 vehicle in violation of the provisions of clause (a) of section 227C

(ii) Wherc any authority lbr rcsponsrble r€Sislering, recording or attesting the transfer of immovable ProPert)’ accepts or pfocesses the registration or atlestalion of such property in v;olation ollhe provisions ofclause (b) . ofsection 227C

(3) alier section 214C, the following new section shall be inserted, “2l,lE. Closurc of rudit.-Notwithstanding the omission of section 214D. audit ol ircome tax affairs of a taxpayer under sub-section (2) of section 2l4D shall bc deemed to have been il concluded.

(i) taxpryer has becn selected for audit under sub- sectio| (l) ofthe omitted section 2l4D;

(ii) notice under sectfun 122 has not been issucd;

(iii) thc laxpayer has revised rcturn voluntarily, by drirty firs1 day ol l)eccmber, 2018, along with payment of 25% higher rax tlEn the tax paid with return on the basis of taxable iDcome alld wherc no tax is payablc 2% of the tumover ard whcre no turDover is declared penalty under cntry at Serial No. I ol sub-section ( l) of section lE2 has been paid voluntarilyl Pro!idcd that the condition oI revision, 25% higher tax or 20% of the lurnover shall oot apply. if the mxable incotne of lhe ra:‘paycr includer onl) sala+’ incomc or income srbjcct to {inal taxation under sub seclion ( l) ol seclion 169 or subject to taxation Llnder seclioD 5, 5AA, 6.7.’7A ot lB. Explanation -For the removal of doubt it is clarilied that only audit initiated as a rcsult of autornatlc selectior undcr the omitted section 2l4D shall stand

116 l HL GAZE]-L[. OF PAKISI AN. LX r RA., OC’,I OBER r0, l0l8 [P^Rr I abatL’d [nder this section and audit initiated or to be initiated on rhe basis ofdefinite information or otherwise as per provisioDs oa section 177 or 2l4C shall bc corducted irdcpcrdenlly.“r

(4) in scclion 116, afier sub-seclion (6), the following new sub section shall bc in rerted, nan)ely.- “(64.) Noth ng contaiDcd rn sub-scction (l) shall prevent the Board fiom providing dat.1 to any person approved by the Federal Gov€rnment to process and analyze such data t-or brcadening oft i base or for checkirg evasion: Provided that such data shall 5e anonyrnrzed before transnission to the person and idenrifying paniculfis of the 1a\p:yers shall be kept conUdential ’;

(5) in section 227C, fot llrc full stop at the end, a colon shall be substitutec aud thercafter Lhc following provisos shall be added, nanely:– “Pro ,ided that the provisions of clause (a) shall not apply in of’.- respect

(i) molorcycle having engine capacity of less than 200 cc. motorcycle-ricksha!. agricultural tmctor or an) other rnotor vehi( Ic having enqire capaciry of less than 200 cc; or

(ii) a person holding a Pakistan oflgin card or a national identity card for ovemeas Pnkislanis who produces a cerlificnte from a sche(luled bank ol’rcceipt of fbreign exchange remitted from cutsile Pakislan th(nrgh nonnal banking chanrels during a pericd of sixty days prior to the date of booking. re8istration or purchase of,notor vehlcle: Provi(led further that rhc provisions of clause (b) shall not apply to.

(i) a legrl heir acquiring properry in inheritance; or

(ii) a pcrsoD holding a Pakistan origin card or a narional idenrity card tbr overseas pakistanis \vho produces a cenLflcate fiom a scheduled bank for rcccipl ol li).eign exohange remitred tiour outsi,le Pakislan through normal banking channels dLrrir.u a period of sixry days prior to the daLe ol registeriig. recordiDg or atlesting tl?nsler.“:

2018 PAR1 ll THE GAZETTE OF PAKISTAN, EXTRA., OCTOBER I0. t’11

(6) in the First Schedlle.-

(a) in Part l, in Division I, for paragraph (l), the fbllowing paragraphs shall bc substiurled, namely:- “(l) The rates of tax imposed on the taxable incomc of cvcry irtdividual, not being an individual to which paragraph ( lA) ot this Divisron applies, shall be as set out in the lollowirg table. namely:- TABLE does not exceed Rs. 40 000 2 Where the taxable income exceeds lRs. 1,000 Rs. 400.000 but does not exceed Rs. 800,000 but does not exceed Rs. I 2 000 Rs.1,200,000 but do€s not excecd anrounl t.200.000 .100 000 ,Rs ’l .000.000 Rs.4,000 000 t crcecds Rs i,000,000 Rs.5 000,000

t’rovided that whcre lhe taxable income exceeds eight huncred lhousand rLrpees the minimum tax payable shall be two’housand rupees. ( lA) Whe.e the income of an individual chargeable under thc hcad “salary” exceeds fi1ly per cenl of his taxable income, the rates of tax to be applied shall be as set out in the following table, namr)ly: TABLE not exceed Rs. 100.000 exceeds Rs. 400,000 but does nol exceed Rs. 800,000 excecds Rs. 800.000 b t does not exceed Rs. I,200,000 of ,exceeds Rs. 1,200,000 but does Rs 1,200.000 e\cceding Wherc the Rs.4,000,000 amount exceeding .,J Rs.8.000,0 Pro\ ided that where the taxable incorne exceeds eight hundred lhousand rupecs thc minimum tax payable shall be two thousand rupees.“; rnd

IO.20I8 P^Rr ll ’THE GAZETTE OF PAKIS’IAN, [XTRA,. OCTOBER ’7’19

(b) in Pal1 lV, in Division XXl. tor the figure “0 4’, the fi9urc “0.6” shall be substiluted; arld

(7) in lhc Sccond Schcdule.

(a) in I’,r, r l.

(i) ir clause (51), the coDma and Nords the Provincial Covernors’ shall be omiltcdl

(ii) in cla’isc (52). thc words and comma “Provincial Governors.” shall bc ornitled; (iiD clause (51) shall be omitted; (i’) iD clause (61), afler snb-clause (liii). the following new sub- clause shall be added, na’nely:- ‘’(liv) Supreme Courl of Pakistan Diamer Bhasha & Mohmand Dams - Fund.“l and

(v) in clausc (66), aftcr sub-clalrse (lxi), the following new sub’ clause shall be added, namelY:- -(lxii) Supreme Cotrlt of Paki$an Diamer Bhasha & Mohmand Dams - Fund.“:and

(b) in Part IV. aftcr clausc (106). the fotlou’ing new clauses shall be added. nanelY: ‘’(107) The provisions of scction lll relating to unexplained illcome or assets shall not apply in respecr of any ol oontribution pald to the Supreme Court PakisLan - Diamer Bhasha & Mohmand Dams _Fund. (l08) lhe provisions of sections ll3, l5l, 231A, 23lAA and 236P shall not apply to the Supreme Court of Pakistarr - Diamer Bhasha & Mohrland Dams -Fund (109) Thc provisions ofsection 236P shall not appl)’at thc tirne ot lrnrrsf’er of any sunl to tlre Supreme Cout1 of Pakrstan _ Dianre. llhasha & Mohmand Danls Fund.“ 5. Amendmenl of lhc Fedeml Excise Act, 2005 ID the federal Excrsc Act. 2005. the follow;ng further amendments shall be made, namely:-’

TIII] GAZE ITE OF PAKISTAN, EXI’RA.. OC’I OBtJIt IO, ]O IE

(l) in sectro’r 2. rhe existiDg clause (2,1A) shall be re-rlutllbered as clause (24B) and belbre clause (24B), re’Irmbered as aforesaid. clalrse t 24A ) .hall be inscrled. |lamelJ:- ‘’(24A , ‘un-maDtl1-actured tobacco means tobacco useable for manufacture of cigarerles as nunufactored by Creen LeafThrcshing Urits after processirg and convcrsion ol’ tobacco grcen leal“:

(2) in section 19. in sub-sccrion (10), after the rvord ,’cigareftes“. mcurrirg for the firs! second and fifth time. th( words ’or un- manuf_actured lobacco“ shall be inserted;

(3) in section 26. ur sub-seclion (l), aftel the rvord ’cigareftes“, occurrirg for the second and third iimc. the comma and words “, un-manufactured tobacco” shall be insened.

(4) in sectix 27, in the marginal note and in both. sub-scclions (2) and (3), aftt r the word “cigarettes”,.wherever occrin.illg the conuna and words’. un-manufactured lobacco“ shall bc Ilscrte(l:

(5) in the Firsr Schedule, in Table I, i’r columrr (l).

(a) aeainst serial number 7, iD column (4), for the word _ten“, the w,rrds “three hundred” shnll be substiruted:

(b) fo. serial numbers 9, l0 and l0a and entries rclating thereto in cclu’nns (2), (3) and (a), the following entries shall bc substituted, namcly - -9 l,ocally produced crgarettes i 24.02 Rupe€s fbur their on-pack printed rercil thousand five price exceeds fbur thousand hundred per live hundred rupees per thousand lhousand cigaretfes. cigarettes l0 l,ocally produced crgareftes i 24.02 Rupees one their on-pack prinred retail tho sand eight price exceeds t$,o thousand hundred and r ine hundred and rwcnty-five tbrty per rupees per thousand cigarettes thousand tut does not exceed four t rousand five huDdred rup€es er lhousand c

Il 10,2018 P^Rl TUF. GAZETTE OF PAKISTAN. EXTRA., OCTOBER 781 10a Locally produced cigarettes if 24.02 Rupees one theiron-pack priured retail price does not exceed two hundred and fiftf’ thousand nine hundred and per trvenly-llle rupecs pcr thousand thoosand cigareltes cigarettes“; and

(6) in the Tlrird Schedule, in Table I, in colsmn (l), against serial (2),- number 16, in column

(a) after the word “goods”, occurrinB lbr thc first trmc, the conrrnas and rvords “, excluding uD-nr6nulactured tobacco,” shall be insencdi aDd

(b) the e\planarion shall be omrtted TAI.IIR IIUSSAiN, PRINIU) NY TI II] MANACIR, I’RIN I INC CO RPi)R^1 loN OI P KIS ANPRIISS, ISLAMAAAI) pLIrr\ItouYIirrDFl,lJTYcoNlRolLl-lLsl,\l()NFR!^Nl)l,oRMSuNlvlltslTYRoAD,KAI{ACHI