8 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 258 pages and contains 48 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every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2019 rather than as originally enacted.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 55,690 words across 48 sections.

What changed since the previous version

Against the version published 30 June 2019, this one has 45 new sections.

New in this version

section 1, Short title and commencement
section 5, Amendment of West Pakistan Finance Act, 1965 (W.P. ACT No. I of 1965)
section 6, Amendments of Customs Act, 1969 (IV of 1969)
section 7, Amendments of Port Qasim Authority Act, 1973 (XLIII of 1973)
section 8, Amendments of Abandoned Properties (Management) Act, 1975 (XX of 1975)
section 9, Amendment of Pakistan Civil Aviation Authority Ordinance, 1982 (XXX of 1982)
section 10, Amendments of National Database and Registration Authority Ordinance, 2000 (VIII of 2000)
section 11, Amendments of Sales Tax Act, 1990
section 12, Amendments of Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001)
section 13, Amendments of Income Tax Ordinance, 2001 (XLIX of 2001)
section 14, Amendments of Federal Excise Act, 2005
section 15, Amendments of Anti-Dumping Duties Act, 2015 (XIV of 2015)
and 33 more

The source file


File name	`2019731173630487FinanceAct,2019.pdf`
Pages	258
Size	2.16 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	3 of 9

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A note on these figures

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The full text of this version

All 48 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.

1. Short title and commencement

(1) This Act may be called the Finance Act, 2019.

(2) It shall, unless specified otherwise, come into force on the first day of July, 2019 except clause 17 which shall come into force at once. Where tax is required to be deducted or collected under any provision of this Ordinance from persons not appearing in the active taxpayers’ list, the rate of tax required to be deducted or collected, as the case may be, shall be increased by hundred percent of the rate specified in the First Schedule to this Ordinance.

(1) This Act shall be called the Assets Declaration Act, 2019.

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(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

(1) This Act may be called the Public Finance Management Act, 2019.

(2) It shall apply to all matters of the Federal Consolidated Fund and Public Account of the Federation and all other matters of the Federal Government connected with or ancillary thereto.

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(3) It shall come into force at once.

2. Amendments of Stamp Act, 1899 (II of 1899)

In the Stamp Act, 1899 (II of 1899), as in force in the Islamabad Capital Territory,-

(a) after section 27, the following new section shall be inserted, “27A Valuation of immovable property.-(1) Where any instrument chargeable with ad valorem duty under Articles 23,31 or 33 of Schedule-I relates to an immovable property, the value of the immovable property shall be calculated according to the valuation table notified by the district collector in respect of immovable property situated in the locality.

(2) Where an instrument, mentioned in sub-section (1), relates to immovable property consisting of land and structure, it shall state the value of the land and structure separately and the value of the structure stated in the instrument shall, subject to the provisions of this Act, be accepted.

(3) Where the value of immovable property stated in an instrument to which sub-section (1) applies is more than the value fixed according to the valuation table, the value declared in the instrument shall be accepted as value for the purposes of stamp duty.

(4) Where the value given in the valuation table notified under sub-section (1), when applied to any immovable property, appears to be excessive, the deputy commissioner or commissioner (revenue) or any other person notified by the Government for this purpose may, on application made to him by the aggrieved person, determine its correct value and for that purpose the provisions of sections 31 and 32 shall apply as nearly as possible.”; and

(b) for Schedule I, the following shall be substituted, namely:-

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“SCHEDULE 1

STAMP-DUTY ON INSTRUMENTS

[See sections 3 and 27A]

written or signed by, or on behalf of, a debtor in order to supply evidence of such debt in any book other than a banker’s pass-book or on a separate piece of paper when such book or paper is left in acknowledgement does not contain any promise to pay the debt or any stipulation to pay interest or to deliver any goods or other property:-

two thousand rupees; thousand rupees but does not exceed ten thousand rupees; and thousand rupees. a bond given under sections 291, 375 and 376 of section 6 of the Government Savings Banks Act, 1873 (V of 1873)- amount. 3. ADOPTION-DEED that is to say, any One hundred Rupees adoption or conferring or purporting to confer an authority to adopt. ADVOCATE, see ENTRY AS AN ADVOCATE (No. 30). declaration in the case of persons by law allowed to affirm or declare instead of swearing, except affidavit or declaration in writing when made-

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writing when made- Pakistan Army Act, 1952 (XXXIX of 1952), or the Pakistan Air Force (XXXV of 1961); filed or used in any Court or before the officer of any Court; or charitable allowance. OF AN AGREEMENT- exchange; the value of the security, subject to a maximum of One Hundred Rupees. the share. an agreement- No.43; Federal Government for or relating to any loan. (No.35). evidencing an agreement relating to-

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evidence of the title to any property security), or property, where such deposit, pawn or pledge has been made by way of security for the re-payment of money advanced or to be advanced by way debt- on demand or more than three agreement; that is to say, 0.2% of the loan amount; and instrument;

(ii) that is to say 0.1% of the loan amount. A POWER where made by any writing not being a will- made otherwise than under an order of the Court in the course of a suit-

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amount. obligatory between parties either by agreement or operation of law; and purpose of ascertaining the amount to be given to a landlord as rent. every writing relating to the service or tuition of any apprentice clerk or servant, placed with any CLERKSHIP (No. 11). executed by a Magistrate under the Apprenticeship Ordinance, 1962 (LVI of 1962), or by which a person is apprenticed by or at the charge of any public charity. COMPANY- capital or the nominal share capital does not exceed Rs. 2,500. exceed Rs. 1,00,000; exceed Rs. 10,00,000; and exceeds Rs. 10,00,000. not formed for profit and registered under section 42 of the Companies Act, 2017 (XIX of 2017). OF A COMPANY (No.39). contract whereby any person first becomes bound to serve as a clerk in order to his admission as an attorney in any High Court.

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ASSIGNMENT, See CONVEYANCE (No.23), ATTORNEY, See ENTRY AS AN ATTORNEY ADOPTION-DEED (No. 3) ticket. rupees per ticket. 11B AUTHENTICATED DECLARATIONS Five thousand rupees per competent Authority. declarant. authenticated unless the duty is paid. 12. AWARD, that is to say, any decision in Three percent of the writing by an arbitrator or umpire, not being an amount or value of the award directing a partition, on a reference made property to which the otherwise than by an order of the Court in the award relates as set forth 13. currency note- demand but not more than one year after date or sight- thereof of the amount of the Bill thereof of the amount of the Bill. after date or sight. of Bill. Bill.

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Bill. bill of lading). Note-If a bill of lading is drawn in parts, the proper stamps therefore must be borne by each one of the sets. EXEMPTIONS:-

place within the limits of any port as delivered at another place within the limits of the same port; and Pakistan and relating to property to be delivered in Pakistan. otherwise provided for by this Act, or by the Court Fees Act, 1870 (VII of 1870)- rupees; and rupees for every additional amount thereof. BOND (No.26). RESPONDENTIA BOND (No.56) SECURITY BOND (No.57). person for the purpose of guaranteeing that the local income derived from private subscription to a object of public utility shall not be less than a specified sum per mensum. 16. BOTTOMRY BOND, that is to say, any The same duty as on a instrument where by the master of a seagoing ship Bond (No.15) for the enable him to preserve the ship or prosecute her voyage.

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attested and not otherwise provided for. TRUST (No.64-B). 18. CERTIFICATE OF SALE (in respect of Four percent of the each property put up as a separate lot and sold) consideration equal to granted to the purchaser of any property sold by the amount of the Collector or other Revenue Officer- DOCUMENT evidencing the right or title of the holder thereof or any other person, either to any shares, scrip or stock in or of any incorporated company or other body corporate, or to become proprietor of shares, scrip or stock in or of any such company or body. SHARES (No.36). instrument (except an agreement for the hire of a tug-steamer) whereby a vessel or some specified purposes of the charterer, whether it includes a penalty clause or not. One Hundred rupees. 22. COMPOSITION-DEED, that is to say, any instrument executed by a debtor whereby he creditors, or whereby payment of a composition or dividend on their debts is secured to the creditors, or whereby provision is made for the continuance of the debtor’s business under the supervision of Inspector or under letters of licence for the benefit of his creditors. 23. CONVEYANCE as defined by section 2 Four percent of the value exempted under No. 62 true copy or extract by or by order of any public officer and not chargeable under the law for the time being in force relating to court-fees-

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(a) the original was not chargeable with Five rupees. duty or if the duty with which it was chargeable does not exceed four rupees; and

(b) in any other case Ten rupees. EXEMPTION:-

(a) Copy of any paper which a public officer is expressly required by law to make or furnish for record in any public office or for any public purpose;

(b) Copy of, or extract from, any register relating to births, baptisms, aming, dedications, marriages (divorces), deaths or burials. 25. COUNTERPART OR DUPLICATE of any instrument chargeable with duty and in respect of which the proper duty has been paid-

(a) if the duty with which the original The same duty as is instrument is chargeable does not leviable on the original. exceed four rupees;

(b) in any other case Ten rupees. EXEMPTION:- Counterpart of any lease granted to cultivator when such lease is exempted from duty. 26. CUSTOMS BOND- (a) where the amount does not exceed The same duty as on a Rs. 1,000; and Bond (No.15) for such amount.

(b) in any other case One Hundred rupees. 27. DEBENTURE OR PARTICIPATION One-twentieth of one TERM CERTIFICATE OR TERM FINANCE percent that is to say CERTIFICATE OR ANY OTHER 0.05% of the face value INSTRUMENT OF REDEEMABLE CAPITAL OTHER THAN A COMMERCIAL PAPER whether or not a Subject to a maximum of mortgage debenture or Participant Term one million rupees Certificate, or Term Finance Certificate or any other instrument of redeemable capital being a marketable security transferable or by endorsement or by separate instrument of transfer or by delivery. Explanation-The term “Debenture” includes any interest coupons attached thereto, but the amount of such coupons shall not be included in estimating the duty.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 111 EXEMPTION:- A debenture issued by an incorporated company or other body corporate in terms of a registered mortgage-deed, duly stamped in respect of the full amount of debentures to be issued thereunder, whereby the company or body borrowing makes over, in whole or in part, their property to trustees for the benefit of the debenture, holders, provided that the debentures so issued are expressed to be issued in terms of the said mortgage-deed. See also BOND (No.15), and SECTIONS 8 and 55. DECLARATION OF ANY TRUST See TRUST (No.64). 27A DECREE, RULE OF A COURT Four percent of the value OR AN ORDER OF A COURT based on of property. mutual consent of parties in cases involving transfer on an immovable property including sale, exchange, gift or mortage, declaring or conferring a right in or title to an immovable property. Explanation:- Value in this Article, means value of property in accordance with the valuation table as notified by the Collector or where valuation table is not available the average sale price of a property of similar nature in the same revenue estate or locality in the preceding year as may be determined by Collector. 28. DELIVERY-ORDER IN RESPECT OF Ten Rupees. GOODS, that is to say, any instrument entitling any person therein named, or his assigns or the holder thereof, to the delivery of any goods lying in any dock or port, or in any ware-house in which goods are stored or deposited on rent or hire, or upon any wharf such instrument being signed by or on behalf of the owner of such goods upon the sale or transfer of the property therein when such goods exceed in value twenty rupees. DEPOSIT OF TITLE-DEED. See AGREEMENT relating to DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE (No.6). DISSOLUTION OF PARTNERSHIP. See PARTNERSHIP (No.46).

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DIVORCE-Instrument of, that is to say One Hundred rupees. any instrument by which any person effects the dissolution of his marriage. (No.58). DUPLICATE. See COUNTERPART (No.25). ATTORNEY ON THE ROLL OF ANY HIGH COURT-under the Legal Practitioners and Bar Councils Act, 1973 (XXXV of 1973)- hundred rupees. EXTRACT. See COPY (No.24) the value of the property forth in such instrument. that is to say, any instrument imposing a further charge on mortgaged property- instrument. description referred to in clause (b) possession)- duty already paid on such further charge.

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instrument. 33. GIFT-Instrument of, not being The same duty as is instrument. INSURANCE (No. 47). lease and any agreement to let or sub-let- delivered- lease. reserved. years of the lease.

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which would be paid or delivered for the first ten continued so long. advanced as set forth in the lease. or premium as set forth in the lease. set forth in the lease, in payable on such lease, if provided that, in any case lease is stamped with the required for a lease and a rupees. or premium as set forth in lease in addition to the

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that, in any case when an required for a lease and a hundred rupees. (including a lease of trees for the production of food or drink) without the payment or delivery of expressed and such term does not exceed one year, or when the average annual rent reserved does not exceed one hundred rupees. SHARES in any company or proposed company company or proposed company. DOCUMENT (No.19). any instrument by which one person authorizes another to give credit to the person in whose favor it is drawn. AGREEMENT (No.5). any agreement between a debtor and his creditors, that the letter shall, for a specified time, suspend business at his own discretion. OF A COMPANY- association under section 35 of the Companies Act, 2017 (XIX of 2017); section 42 of the Companies Act, 2017 (XIX of 2017).

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AGREEMENT RELATING TO DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE (No.6), OF A CROP (No.41),RESPONDENTIA BOND (No.56), OR SECURITY BOND (No.57)- deed. mortgaged or part thereof, is deemed to give possession within the meaning of this article. additional or substituted security, or by way of further assurance for the above-mentioned purposes where the principal or primary security is duly stamped- Rs. 1,000; and for every Rs. 1,000 or part thereof secured in excess of Rs. 1,000; and interest; and that is to say 0.2% of the loan amount. Improvement Loans Act, 1883 (XIX of 1883), or the Agriculturists Loans Act, 1884 (XII of 1884) or by their sureties as security for the repayment of such advances. accompanying a Bill of Exchange.

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any instrument evidencing an agreement to secure the repayment of a loan made upon any mortgage of a crop, whether the crop is or is not in existence at the time of mortgage- than three months from the date of hundred rupees or part thereof of the sum secured; and eighteen months, from the date of the secured. certificate or entry not being a PROTEST (No.50) execution of the duties of his office, or by any other person lawfully acting as a Notary Public. (No.50). BY a broker or agent to his principal intimating principal- twenty rupees; the security subject to a rupees. 44. MASTER OF A SHIP. See also PROTEST BY MASTER OF A SHIP (No.51). ORDER FOR THE PAYMENT OF MONEY. See BILL OF EXCHANGE (No.13).

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shares, than one of such deemed to be that from separated: that- containing an agreement severalty is executed and a partition is effected in instrument affecting such partition shall be reduced paid in respect of the first instrument but shall not be less than four rupees;

(b) where land is held assessment, the value for purpose of duty shall be annual revenue; Revenue authority or any Civil Court, or an award by an arbitrator directing

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partition in pursuance of exceed four Rupees. partnership does not exceed Rs. 500. TO DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE (No. 6). for each part the rate of 1/8 per cent of the for every full sum of Rs. 5,000 thereof insured by the policy. also any fractional part thereof insured by the policy. part thereof insured by the policy- exceeding six months; six months and not exceeding twelve months.

120 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I B-FIRE-INSURANCE AND OTHER CLASSES OF INSURANCE NOT ELSEWHERE INCLUDED IN THIS ARTICLE, COVERING GOODS, MERCHANDISE, PERSONAL EFFECTS, CROPS, AND OTHER PROPERTY AGAINST LOSS OR DAMAGE-

(1) in respect of an original policy-

(i) when the sum insured does not Five exceed Rs. 5,000; Rupees.

(ii) in any other case and Eight Rupees.

(2) in respect of each receipt for any One-half of the duty payment of a premium on any payable in respect of the renewal of an original policy. original policy in addition to the amount, if any, chargeable under No. 53. C-ACCIDENT AND SICKNESS INSURANCE-

(a) Against railway accident, valid for a Three Rupees single journey only. EXEMPTION When issued to a passenger travelling by the intermediate or the third class in any railway.

(b) In any other case for the maximum Three Rupees: Provided amount which may become payable that, in case of a policy in the case of any single accident or of insurance against sickness where such amount does not death by accident when exceed Rs. 2,000 and also where the annual premium such amount exceeds Rs. 2,000, for payable does not exceed every Rs. 2,000 or part thereof. Rs. 2.50 per Rs. 1,000 the duty on such instrument shall be one rupee for every Rs.1,000 or part thereof of the maximum amount which may become payable under it. D-INSURANCE BY WAY OF INDEMNITY- Against liability to pay damages on account of Three rupees if drawn accidents to workmen employed by or under or singly. against liability to pay compensation under Workmen’s Compensation Act, 1923 (VIII of 1923), for every Rs. 100 or part thereof payable as premium.

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and also for every Rs.1,000 or part thereof in excess of Rs.1,000. granted by the Director-General of Post Offices in accordance with rules for Postal Life Insurance Government. POLICY OF THE NATURE SPECIFIED IN original insurance but not DIVISION A OR DIVISION B OF THIS less than three Rupees or PART OF THE SUM INSURED THEREBY. Provided that, unless such letter or engagement bears the stamp prescribed by this Act for such policy nothing shall be claimable thereunder, nor mentioned. section 2(21) of Stamps Act, 1899 (II of 1899), not being a proxy (No.52)- of procuring the registration of one or more documents in relation to a document;

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to act in a single transaction other (a); persons to act jointly and severally in generally; one transaction or generally; and authorizing the attorney to sell any immovable property. same firm shall be deemed to be one person. every operation incidental to registration under the Registration Act, 1908 (XVI of 1908). section 2(22) of Stamps Act, 1899 (II of 1899)- not exceed Rs. 250.000; exceeds Rs. 250,000 but does not exceed Rs. 500,000; 100,000 Notary Public or other person lawfully acting as such, attesting the dishonor of a Bill of Exchange for promissory note. particulars of her voyage drawn up by him with a

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 123 view to the adjustment of losses or the calculation of averages, and every declaration in writing made by him against the charterers or the consignees or not loading or unloading the ship, such declaration is attested or certified by a Notary Public or other person lawfully acting as such. See also NOTE OR PROTEST BY THE MASTER OF A SHIP (No.44). 52. PROXY empowering any person to vote Five Rupees at any one election of the members of a district or local board or of a body of municipal commissioners, or at any one meeting of (a) members of an incorporated company or other body corporate whose stock or funds is or are divided into shares and transferable; (b) a local authority; or (c) proprietors, members or contribution to the funds of any institution. 53. RECEIPTS as defined by section 2 (23) of Stamps Act, 1899 (II of 1899) for any money or other property the amount or value of which exceeds twenty rupees-

(a) where the amount or value does not One Rupee exceed two thousand rupees;

(b) where the amount or value exceeds Two Rupees. two thousand rupees but does not exceed ten thousand rupees;

(a) endorsed on or contained in any instrument duly stamped for any instrument exempted under the proviso to section 3 (instruments executed on behalf of the Government) or any cheque or bill of exchange, payable on demand acknowledging the receipt of the consideration money therein expressed, or the receipt of any principal-money, interest of annuity, or other periodical payment thereby secured;

(b) for any payment of money without consideration;

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(d) for pay or allowances by non- commissioned or petty officers, soldiers, sailors or airmen of the armed forces of Pakistan/ Pakistan’s military, naval or air forces, when serving in such capacity, or by mounted police constables;

(e) given by holders of family certificates in cases where the person from whose pay or allowances the sum comprised in the receipt has been assigned as a non- commissioned or petty officer, soldier, sailor or airman or any of the said forces and serving in such capacity;

(f) for pensions or allowances by persons receiving such pensions or allowances in respect of their services as such, non-commissioned or petty officers, soldiers, sailors or airmen, and not serving the State in any other capacity;

(g) given by a headman or lambardar for land-revenue or taxes collected by him;

(h) given for money or securities for money deposited in the hands of any banker to be accounted for: Provided that the same is not expressed to be received of, or by the hands of, any other than the person to whom the same is to be accounted for: Provided also that this exemption shall not extend to receipt or acknowledgment for any sum paid or deposited for, or upon a letter of allotment of a share, or in respect of a call upon any scrip or share of, or in, any incorporated company or other body corporate or such

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being a marketable security. (2)]. PROPERTY- exceed Rs. 1,000; being such a release as is provided for by section 23A of Stamps Act, 1899 (II of 1899)] whereby a person property- 56. RESPONDENTIA BOND, that is to say, The same duty as on a any instrument securing a loan on the cargo laden Bond (No.15) for the or to be laden on board a ship and making amount of the loan the port of destination. SETTLEMENT. See SETTLEMENT (No.58), TRUST (No.64). DEED executed by way of security for the due execution of an office, or to account for money or executed in favour of a Court for the due discharge of a contingent liability or executed by a surety to secure the due performance of a contract- exceed Rs. 1,000; when executed- derived from private subscription to a charitable dispensary or hospital or

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shall not be less than a specified sum per mensum; section 70 of the Sind Irrigation Act, 1879; under the Land Improvement, Loans Agriculturists Loans Act, 1884 (XII advances; property received by virtue thereof. power)- land settled. the property settled: settle is stamped with the instrument of settlement, exceed four rupees:

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that where an instrument settlement, the amount or determined as if no such instrument. EXEMPTIONS:- Deed of dower executed on the Two percent of the occasion of marriage between Muslims. consideration equal to instrument of revocation. 59. SHARE WARRANTS to bearer issued One and a half times the under the Companies Act, 2017 (XIX of 2017). duty payable on a Debenture [No.27 ] for a the warrant. in pursuance of the Companies Act, 2017 (XIX of Stamp revenue of- company; or subsequently issues an addition to its subscribed capital-one and half per centum of the additional capital so issued. conveyance of goods on board of any vessel.

128 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I 61. SURRENDER OF LEASE- (a) when the duty with which the lease The duty with which is chargeable does not exceed thirty lease is chargeable. rupees;

(b) in any other case One hundred rupees EXEMPTION:- Surrender of lease, when such lease exempted from duty. 62. TRANSFER (whether with or without consideration)-

(a) of shares in an incorporated One-fourth of the duty company or other body corporate; payable on a Conveyance (No.23) for a consideration equal to the value of the share.

(b) of Debenture or Participation Term One tenth of one percent Certificate or Term Finance that is to say 0.1% of the Certificate or any other instrument or face value of the redeemable capital (other than instrument. Commercial Paper), whether mortgaged or not, being a transferable security, whether liable to duty or not except as provided for by section 8

(i) if the duty on such bond, The duty with which mortgage-deed or policy does such bond, mortgage- not exceed twenty rupees; and deed or policy of insurance is chargeable.

(ii) in any other case Fifty Rupees.

(d) of any property under the Fifty Rupees. Administrator-General’s Act, 1913, (III of 1913) section 31; and

(e) of any trust-property without Twenty Rupees or such consideration from one trustee to smaller amount as may another trustee or from a trustee to a be chargeable under beneficiary. clauses (a) to (c) of this Article. EXEMPTIONS:- Transfers by endorsement-

(a) of a bill of exchange, cheque or promissory note;

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goods; Federal Government. 63. TRANSFER OF LEASE by way of The same duty as is assignment and not by way of under-lease. leviable on Conveyance from duty. concerned as set forth in Rupees. concerned as set forth in Rupees. person therein named, or his assigns, or the holder thereof, to the property in any goods lying in or behalf of the person in whose custody such goods may be.

130 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(1) Where the withholding agent or the person from whom tax is required to be collected or deducted is satisfied that a person not appearing in the active taxpayers’ list was not required to file a return of income under section 114, or a statement under sub-section (4) of section 115, as the case may be, he shall before collecting or deducting tax under this Ordinance, furnish to the Commissioner a notice in writing electronically setting out-

(a) the name, CNIC or NTN and address of the person not appearing in the active taxpayers’ list;

(b) the nature and amount of the transaction on which tax is required to be collected or deducted; and

(c) reason on the basis of which it is considered that the person was not required to file return or statement, as the case may be.

(2) The Commissioner, on receipt of a notice under sub-rule (1), shall within thirty days pass an order accepting the contention or making the order under sub-rule (3).

(3) Where the withholding agent or the person from whom tax is required to be collected or deducted has notified the Commissioner under sub- rule (1) and the Commissioner has reasonable grounds to believe that the person not appearing in the active taxpayers’ list was required to file return or statement, as the case may be, the Commissioner may, by an order in writing, direct the withholding agent to deduct or collect tax under rule 1: Provided that in case the Commissioner does not pass any order within thirty days of receipt of notice under sub-rule (1), the Commissioner shall be deemed to have accepted the contention under sub-rule (2) and approval shall be treated to have been granted.

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(1) In this Act, unless there is anything repugnant in the subject or context,-

(a) “Board” shall have the same meaning as defined in clause (8) of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001);

(b) “court of law” means a High Court or Supreme Court of Pakistan;

(d) “holder of public office” means a person as defined in the Voluntary Declaration of Domestic Assets Act, 2018 or his benamidar as defined in the Benami Transactions (Prohibition) Act, 2017 (V of 2017) or their spouses and dependents;

(e) “undisclosed assets” means all domestic and foreign assets of every kind the value of which has been unreported, under-reported or understated and includes benami assets as defined in the Benami Transactions (Prohibition) Act, 2017 (V of 2017);

(f) “undisclosed expenditure” means any unexplained or unaccounted expenditure under the provisions of the Income Tax Ordinance, 2001 (XLIX of 2001) up to the tax year 2018, which has not been declared in the return of income or for which a return of income has not been filed and such expenditure is not accounted for;

(g) “undisclosed sales” means sales or supplies chargeable to sales tax or goods or services subject to federal excise duty under the Sales Tax Act, 1990 or the Federal Excise Act, 2005, respectively, which were not declared or have been under-declared up to the 30th June, 2018.

(2) All other words and expressions used but not defined in this Act shall have the same meaning assigned thereto under the Income Tax Ordinance, 2001 (XLIX of 2001), the Sales Tax Act, 1990, the Federal Excise Act, 2005, the Benami Transactions (Prohibition) Act, 2017(V of 2017) and the rules made thereunder. In this Act, unless there is anything repugnant in the subject or context,-

(a) “appropriation” means the assignment to meet specified expenditure of funds at the disposal of the assigning authority;

(b) “Auditor-General” means Auditor-General of Pakistan appointed under Article 168 of the Constitution;

(c) “authorization of expenditure” means payments and withdrawals from the Federal Consolidated Fund and Public Account of the Federation against approved budgetary provisions deemed to be duly authorized unless it is specified in the schedule of authorized expenditure;

(d) “bank” means the State Bank of Pakistan or any office or agency of the State Bank of Pakistan and includes any bank acting as an agent of the State Bank of Pakistan in accordance with the provisions of the State Bank of Pakistan Act, 1956 (XXXIII of 1956);

(e) “commitment” means an obligation to make a future payment, the funds for which are reserved against the allocated budget of an entity;

(f) “constitution” means the Constitution of the Islamic Republic of Pakistan;

(g) “Controller General of Accounts” means the person appointed under the Controller General of Accounts (Appointment, Functions and Powers) Ordinance, 2001 (XXIV of 2001);

(h) “contingent liability” means a financial liability that may arise or come into being if one or more events occur;

(i) “Federal Consolidated Fund” means the Federal Consolidated Fund of the Government of Pakistan created under Article 78 of the Constitution;

(j) “financial propriety” means the compliance of law, rules, regulations, maintaining high standard of prudence, vigilance, due diligence and ensuring value for money while incurring expenditure and collecting government receipts;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 233

(k) “financial year” means the financial year as defined under Article 260 of the constitution;

(l) “Government” means the Federal Government;

(m) “medium-term” means budgetary estimates for a rolling three-year budgetary horizon. This includes current estimates, which are to be appropriated by Parliament, and two additional or “outer” years’ estimates;

(n) “outcomes” means the effects of outputs on targeted audience;

(o) “outputs” means service delivered;

(p) “prescribed” means prescribed by rules;

(q) “principal accounting officer” means the secretary of a Division or any official notified as principal accounting officer, responsible for exercising financial propriety in management of public funds and having accountability to Parliament for the economic, efficient and effective use of resources. Explanation.-The term “secretary” shall include the secretary general, principal secretary, secretary or acting secretary to the Government of Pakistan in charge of a division and where there is no secretary, the additional secretary or joint secretary in charge of a division;

(r) “Public Account” means the Public Account of the Federation as defined under Article 78(2) of the Constitution;

(s) “public moneys” mean the moneys forming part of the Federal Consolidated Fund and the Public Account of the Federation;

(t) “public servant” means a public servant within the meaning of section 21 of the Pakistan Penal Code (Act XLV of 1860);

(u) “re-appropriation” means transfer of funds from one head of account of appropriation to another such head of account;

(v) “supplementary grant” means budget grant within the meaning of Article 84 of the Constitution;

(w) “technical supplementary grant” means surrender of funds from one budget grant and budget authorization in another grant. Technical supplementary grant shall not result in increase of overall government expenditure;

234 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(x) “tax expenditure” means the revenue which Government foregoes through the provisions of tax laws that allows deductions, exclusions or exceptions from the taxpayer’s taxable expenditure income or investment, deferral of a tax liability or preferential tax rates;

(y) “treasury single account” means a banking arrangement for the consolidation of government financial resources in one bank account or multiple bank accounts linked to one main account through which the government transacts all its receipts and payments; and

(z) “voted expenditure” means expenditure other than the charged expenditure specified in the annual budget statement referred to in Article 82 (2) of the Constitution. CHAPTER II BUDGET MANAGEMENT BUDGET PREPARATION AND PRESENTATION

3. Amendment of West Pakistan Motor Vehicles Taxation Act, 1958 (W.P. ACT No. XXXII of 1958)

In the West Pakistan Motor Vehicles Taxation Act, 1958 (W.P. Act No. XXXII of 1958), as in force in the Islamabad Capital Territory, for the Schedule, the following shall be substituted, namely:-

“Schedule

[See section 3]

TABLE 1

TOKEN TAX (Motor Cycle and Scooter)

TAX RATES FOR ICT Rs.

Provided that quarterly rates under section 3 shall not be applicable to lifetime tax.

TABLE 2

TOKEN TAX (Motor Vehicles)

TAX ICT Rs. Provided that quarterly rate under section 3 shall not be applicable to lifetime tax.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 131

TABLE 3

MOTOR CABS UPTO 6 SEATS

ICT Rs.

TABLE 4

PUBLIC SERVICE VEHICLE

Tax rates of for ICT in Rupees 400 per seat per annum 5. Vehicle (42 seater)

TABLE 5

COMMERCIAL VEHICLES AND LOADING VEHICLES

ICT in Rupees 1. Vehicles not exceeding 1250 KG in laden weight 500 per annum exceeding 1250 KG but not exceeding 2030 KG 4. Vehicles with maximum laden capacity 3,000 per annum exceeding 4060 KG but not exceeding 6090 KG 5. Vehicles with maximum laden capacity 3,500 per annum exceeding 6090 KG but not exceeding 8120 KG

132 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(1) Where for a tax year a person’s tax has been collected or deducted in accordance with rule 1 and the person fails to file return of income or statement, as the case may be, for that tax year within the due date provided in section 118 or as extended by the Board, the Commissioner shall notwithstanding anything contained in sub-sections (3) and (4) of section 114 or sub-section (5) of section 115, within sixty days of the due date provided in section 118 or as extended by the Board make a provisional assessment of the taxable income of the person and issue a provisional assessment order specifying the taxable income assessed and tax due thereon.

(2) In making the provisional assessment under sub-rule (1), the Commissioner shall impute taxable income on the amount of tax deducted or collected under rule 1 by treating the imputed income as concealed income for the purposes of clause (d) of sub-section (1) of section 111: “Provided that the provision of section 111 shall be applicable on unexplained income, asset or expenditure in excess of imputed income treated as concealed income under this rule.” “Explanation.-For the removal of doubt it is clarified that the imputable income so calculated or concealed income so determined shall not absolve the person so assessed, from requirement of filing of wealth statement under sub-section (1) of section 116, the nature and source of amounts subject to deduction or collection of tax under section 111, selection of audit under section 177 or 214C or subsequent amendment of assessment as provided in rule 8 and all the provisions of the Ordinance shall apply.”

Subject to the provisions of this Act, any person may make, on or before the 30th June, 2019, a declaration only in respect of any-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 225

(a) undisclosed assets, held in Pakistan and abroad, acquired up to the 30th June, 2018;

(b) undisclosed sales made up to the 30th June, 2018;

(d) benami assets acquired or held on or before the date of declaration. Explanation.- It is clarified that the benefit under this Act shall also be available where-

(a) any proceedings have been initiated or are pending or where any income has been assessed under the Income Tax Ordinance, 2001 (XLIX of 2001), which are relatable to undisclosed assets or expenditure except where the matter has attained finality; and

(b) any proceedings have been initiated or are pending or have been adjudicated under the Sales Tax Act, 1990, or the Federal Excise Act, 2005, which are relatable to any undisclosed sales or supplies except where the matter has attained finality.

(1) The Federal Government shall approve the budget strategy paper containing quantified macroeconomic and fiscal projections for the medium-term by fifteenth of March of each year. It shall be published as well as placed on the Finance Division’s official website. The paper shall indicate strategic priorities of the Government revenue and spending policies and specify indicative levels of spending in various Ministries and Divisions. Upon approval of the paper, the Finance Division shall issue indicative budget ceilings to Ministries and Divisions.

(2) The Minister for Finance shall discuss the budget strategy paper with Standing Committees responsible for Finance and Revenue in the Senate and the National Assembly.

(3) The Federal Government may extend the deadline mentioned in sub-section (1) in case of extreme requirement.

4. Amendment of West Pakistan Finance Act, 1964 (W.P. Act No. XXXIV of 1964)

In the West Pakistan Finance Act, 1964 (W. P. Act No. XXXIV of 1964), as in force in the Islamabad Capital Territory,-

“11. Tax on trades, professions, callings and employments.- There shall be levied and collected from the persons and companies of the categories specified in column (2) of the Seventh Schedule per annum, a professional tax at the rate as specified in column (3) of that Schedule in the prescribed manner.”; and

namely;-

“Seventh Schedule

[See section 11]

Rupees 1. Companies registered under the Companies Act 2017 having; PKR 10 million exceeding PKR 50 million exceeding PKR 100 million exceeding PKR 200 million 5,000 7. Health Clubs, Gymnasiums and Others

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 133

Goods Stores, Cable Operators, Printing Presses and Pesticide Dealers surgeons

(1) The provisional assessment under rule 3, shall be treated as the final assessment order after the expiry of forty-five days from the date of service of order of provisional assessment and the provisions of this Ordinance shall apply accordingly.

(2) The provisional assessment shall stand abated and shall be taken to be assessment finalized under sub-section (1) of section 120 where the returns of income and wealth statement for the relevant tax year and the preceding tax year along with prescribed forms, statements or documents are filed by the person within a period of forty-five days of receipt of provisional assessment order.

(3) Where returns have been filed before provisional assessment or under sub-rule (2), the tax deducted or collected under rule 1 shall be adjustable against the tax payable in the return filed for the relevant tax year. 5. Where the provisional assessment has been treated as final assessment under sub-rule (1) of rule 4, the Commissioner may within thirty

214 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I days of the final assessment initiate proceedings for imposition of penalties under section 182 on account of non-furnishing of return and concealment of income. 6. For the purposes of this Schedule, imputed income means-(a) income for individuals and association of persons which would have resulted in the amount of tax given in paragraph (1) of Division I of the First Schedule equal to the tax collected or deducted under rule 1 for not appearing in the active taxpayers’ list; or

(b) income for companies which would have resulted in the amount of tax given in Division II of the First Schedule equal to the tax collected or deducted at the higher rate under rule 1 for not appearing in the active taxpayers’ list. 7. Where the withholding agent fails to furnish in the withholding statement complete or accurate particulars of persons not appearing on active taxpayers’ list, the Commissioner shall initiate proceedings under sections 182 and 191 against the withholding agent within thirty days of filing of withholding statement under section 165.

(1) The undisclosed assets shall be chargeable to tax and default surcharge at the value mentioned in section 5 and at the rates specified in the Schedule to this Act.

(2) The undisclosed sales and expenditure shall be chargeable to tax and default surcharge at the rates specified in the Schedule to this Act.

(1) The Federal Government shall, in respect of every financial year, cause to be laid before the National Assembly, Annual Budget Statement consistent with Articles 80 and 81 of the Constitution including a statement of the purpose and estimates divided into detailed items for each demand for grant.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 235

(2) Each Demand for grant may indicate budget estimates of the ensuing year, initial budget estimates and revised estimates of outgoing year and provisional actual expenditure of year prior to outgoing year.

(3) The Annual Budget Statement shall also contain-

(a) statement of contingent liabilities of the Federal Government; and

(b) statement of fiscal risks.

5. Amendment of West Pakistan Finance Act, 1965 (W.P. ACT No. I of 1965)

In the West Pakistan Finance Act, 1965 (I of 1965), as in force in the Islamabad Capital Territory, in section 12, for sub-section (1), the following shall be substituted, namely:-

“(1) There shall be levied and collected in prescribed manner from all the hotels, having at least twenty-five lodging units, a bed tax at the rate of five percent of the invoice or bill excluding sales tax and other applicable taxes.”.

Value of assets,-

(a) in case of domestic immovable properties shall be the cost of acquisition but shall not be less than-

(i) 150% of the FBR value notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001); or

(ii) 150% of the DC value, where FBR value has not been notified or the FBR value is less than the DC value; or

(iii) 150% of FBR value notified under sub-section (4) of section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001) for land and 150% of DC value for constructed property, where FBR value has not been notified for constructed property.

226 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(b) in case of all other assets, shall be the price which the assets would ordinarily fetch on sale in the open market on the date of declaration but in no case shall be less than the cost of acquisition of the asset: Provided that in case of foreign assets, the fair market value shall be determined at the exchange rate prevalent on the date of declaration. Explanation.- It is clarified as follows-

(a) in case any declarant has already filed a declaration in respect of any immovable property under the Income Tax Ordinance, 2001 (XLIX of 2001), or the Voluntary Declaration of Domestic Assets Act, 2018 and wishes to enhance the declared value of the said immovable property, he may file a declaration under this Act in terms of the value mentioned in section 5 and above; and

(b) in case a person has already filed a declaration in respect of any immovable property which is in line with section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001), or the Voluntary Declaration of Domestic Assets Act, 2018 no further proceedings or action shall be initiated against him in view of the provisions of this Act, in particular section 5 thereof. All government expenditures, whether from a recurrent or development demand for grant, shall be based on well-defined plans.

6. Amendments of Customs Act, 1969 (IV of 1969)

In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely:-

(a) after omitted clause (ib), the following new clause shall be inserted, namely,-

officers of customs or through Customs Computerized System to manage risks and ensure compliance;”;

(b) after clause (qa), the following new clauses shall be inserted, namely,-

Procedures on pre-arrival, customs clearance processes reviewing and treating the risk associated with them;

134 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I under the rules, to review functioning and supervise implementation of the Risk Management System and shall comprise as many BS-19 and BS-20 officers of Customs as may be notified by the Board; and”;

(c) after clause (rr), the following new clause shall be inserted; namely,- “(rrr) “Selectivity Criteria” means the risk parameters determined by the Risk Management Committee constituted under the rules for the application of Risk Management System;”;

(2) in section 3E, for the word “Directorates”, wherever occurring, the expression “Directorates General and Directorates,” shall be substituted;

(3) in section 18D, for the words “Federal Government”, the expression “Board, with approval of the Federal Minister-in- charge” shall be substituted;

(4) in section 19,-

(a) in sub-section (1), the expression “removal of anomalies in duties, development of backward areas,” shall be omitted; and

(b) in sub-section (5), in the second proviso, for the figure “2019”, the figure “2020” shall be substituted;”;

(5) in section 25A,-

(a) in sub-section (1), the expression “the Collector of Customs on his motion, or” shall be omitted;

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

(6) in section 25D, the words “Collector of Customs or” shall be omitted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 135

(7) in section 30, in the fifth proviso, for the words “Federal Government”, the expression “Board, with approval of the Federal Minister-in-charge” shall be substituted;

(8) in section 30A, in the second proviso, for the words “Federal Government”, the expression “Board, with approval of the Federal Minister-in-charge” shall be substituted;

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

(10) in section 32, in sub-section (3A),-

(i) after the word “importer’s”, the words “or exporter’s” shall be inserted;

(ii) after the word “importer”, the words “or exporter” shall be inserted; and

(iii) after the word “imported”, the words “or exported” shall be inserted;

(11) in section 32B, after the word “Collector”, the words “or Director” shall be inserted;

(12) after section 32B, the following new section shall be inserted, “32C. Mis-declaration of value for illegal transfer of funds into or out of Pakistan.-(1) Without prejudice to any action that may be taken under this Act or any other law, for the time being in force, if any person overstates the value of imported goods or understates the value of exported goods or vice versa, or using other means including short-shipment, over- shipment, with a view to illegally transferring funds into or out of Pakistan, such person shall be served with a notice to show cause within a period of two years from the date of detection of such mis-declaration as to why penal action shall not be initiated: Provided that if goods have not been cleared from customs, such goods shall also be liable to be seized:

136 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I Provided further that a team consisting of Additional Collector, duly assisted by an expert in the relevant field and an officer of State Bank of Pakistan (SBP) as specified, shall submit a report in writing with evidence for the Chief Collector. The said report shall also be furnished to the SBP for action, if any, under the law regulated by SBP.

(2) Any proceedings under this section shall not be initiated without the explicit approval of the Board.”;

(13) in section 33,-

(a) in sub-section (3A), after the word “of”, occurring for the first time, the expression “subject to pre-audit” shall be inserted; and

(b) after sub-section (4), the following new sub-section shall be inserted, namely:- “(5) For the purpose of this section, the Board may, by notification in the official Gazette, specify the jurisdiction and powers of the officers of Customs to sanction refund in terms of amount of customs duty and other taxes involved.”;

(14) in section 79, in sub-section (1), for the word “fifteen”, the word “ten” shall be substituted;

(15) after omitted section 80A, the following new section shall be inserted, namely:- “80B. Application of risk management system.-For the purpose of enforcing Customs Controls, risk management system shall be used in such manner as may be prescribed by rules.”;

(16) in section 81, after the figure “79”, the expression “or 131” shall be inserted;

(17) in section 82,-

(a) for the word “twenty”, occurring twice, the word “fifteen” shall be substituted; and

(b) for the word “ten” the word “five” shall be substituted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 137

(a) in sub-section (2), for full stop at the end, a colon shall be

System is operational, the issuance of warrant and subsequent transfer of warrant shall take place through system generated documents.”; and

(b) after sub-section (3), the following new sub-section shall be

“(4) The Board may make rules to regulate the transfer of goods in the manner as mentioned in sub-section (2).”;

shall be substituted;

shall be added; and

period as he may deem fit.”; and

(ii) in sub-section (3), after the words “Federal Government”, the word “or Board” shall be inserted;

(20) in section 155A, for the words “Federal Government”, the word “Board” shall be substituted;

(21) in section 156, in sub-section (1), in the TABLE, in the zero column,-

138 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(a) for clause 14 and entries relating thereto in columns (1), (2) and (3), the following new clause and entries related thereto shall be substituted, namely:- “14 If any person such person shall be 32 commits an offence liable to a penalty not under exceeding one hundred thousand rupees or

(i) sub-section three times the value of

(1) or sub- the goods in respect of section (2) of which such offence is section 32; committed, whichever be greater; and such goods shall also be liable to confiscation; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding three years, or to fine, or to both;

(ii) sub-section such person shall be 32”;

(3) or sub- liable to a penalty not section (3A) exceeding fifty of section 32, thousand rupees or two times the value of the goods in respect of which such offence is committed, whichever be greater.

(b) after clause 14A and entries relating thereto in columns (1),

(2) and (3), the following new clause and entries related thereto shall be inserted, namely:- “14B If any person Such person shall be 32C”; commits an liable to penalty not offence under exceeding two hundred section 32C, thousand rupees or three times the value of goods in respect of which such offence is committed

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 139

whichever is greater; and such goods shall also be and upon conviction by a imprisonment for a term not exceeding five years and to a fine which may extend upto one million rupees.

(c) for clause 47A and entries relating thereto in columns (1), (2) and (3), the following new clause and entries related thereto shall be substituted, namely:-

thereafter: one hundred thousand.”;

(22) after section 156, the following new section shall be inserted,

“156 A. Proceedings against authority and persons.- (1) Subject to section 217, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in sections 3 to 3DDD, including any officer or official subordinate to the aforesaid authority, who willfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

140 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(2) Where proceedings under sub-section (1) have been initiated against the authority or officer or official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the person referred to in sub-section (1).

(3) The proceedings under this section shall be without prejudice to any other liability that the authority or officer or official or the person may incur under any other law for the time being in force.”;

(23) in section 179,-

(a) in sub-section (1),-

(i) clause (iv) shall be omitted;

(ii) in clause (v), for the word “fifty” the words “one hundred” shall be substituted; and

(iii) in clause (vi), for the word, “fifty” the words “one hundred” shall be substituted; and

(b) in sub-section (3), for the words “one hundred and twenty”, the word “ninety” shall be substituted;

(24) in section 181, in second proviso, after the figure “16”, the words “or in violation of any other provisions of this Act” shall be inserted;

(25) in section 193, in sub-section (1), after the figure “80”, the expression “,131” shall be inserted;

(26) in section 193A, in sub-section (3), for the words “one hundred and twenty”, the word “ninety” shall be substituted;

(27) for section 194, the following shall be substituted, namely:- “194. Appellate Tribunal.-(1) There shall be established an Appellate Tribunal to be called the Customs Appellate Tribunal to exercise the powers and perform the functions conferred on the Customs Appellate Tribunal by this Act.

(2) The Customs Appellate Tribunal shall consist of a chairman and such other judicial and technical members as are

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 141 appointed in such numbers and in the manner as the Prime Minister may prescribe by rules.

(3) No person shall be appointed as a judicial member of the Customs Appellate Tribunal unless such person-

(a) has been a judge of a High Court;

(b) has exercised the powers of a District Judge and is qualified to be appointed as a judge of a High Court; or

(c) is or has been an advocate of a High Court and is qualified to be appointed as a judge of a High Court: Provided that the person who is or has been an advocate of High Court shall not be appointed as judicial member unless selected in accordance with the Federal Public Service Commission Ordinance, 1977 (XLV of 1977).

(4) No person shall be appointed as a technical member of the Customs Appellate Tribunal unless such person-

(a) is an officer of Pakistan Customs Service equivalent in rank to the Member of the Board or Chief Collector of Customs or Director General; or

(b) is a Collector or Director or Chief of the Board having at least three years experience in that position.

(5) The Federal Government shall appoint one of the Members of the Customs Appellate Tribunal to be the chairman thereof.

(6) The terms and conditions of appointment of the chairman and judicial and technical members shall be such as the Federal Government may determine: Provided that the appointment of a technical member shall be for a period of two years.”;

(28) in section 195,-

(a) in the marginal heading, after the word “Collector”, the words “ or Chief Collector” shall be inserted;

142 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(b) in sub-sections (1) and (1A), for the expression “Collector of Customs (Adjudication)”, the words “Chief Collector” shall be substituted; and

(c) after sub-section (2), the following new sub-section shall be “(3) The cases records of which are called and examined under sub-section (1) shall be decided within a period of one hundred and twenty days further extendable by the Board for another sixty days subject to recording of reasons in writing.”;

(29) for section 195C, the following shall be substituted, namely:- “195C. Alternative dispute resolution (ADR).-(1) Notwithstanding anything contained in this Act, or the rules made there under, any aggrieved person, in connection with any dispute pertaining to liability of customs-duty, admissibility of refund or rebate, waiver or fixation of penalty or fine, confiscation of goods, relaxation of any time period or procedural and technical condition which is under litigation in any court of law or an appellate authority, except in the cases where first information reports (FIRs) have been lodged or criminal proceedings have been initiated or where interpretation of question of law having larger revenue impact in the opinion of the Board is involved, may apply to the Board for the appointment of a committee for the resolution of dispute in appeal.

(2) The Board may, subject to the provisions of sub-section (1), after examination of the application of an aggrieved person, appoint a committee, within thirty days of receipt of such application, consisting of-

(a) an officer of customs not below the rank of Chief Collector;

(b) a person to be nominated by the applicant from a panel notified by the Board, comprising-

(i) chartered accountants and advocates having minimum ten years experience in the field of taxation; and

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 143

(ii) reputable businessmen as nominated by Chambers of Commerce and Industry: Provided that the taxpayer shall not nominate a chartered accountant or an advocate if the said chartered accountant or the advocate is or has been an auditor or an authorized representative of the taxpayer; and

(c) a retired judge not below the rank of District and Sessions Judge, to be nominated through consensus by the members appointed under clauses (a) and (b).

(3) The aggrieved person or the concerned Collector or both, as the case may be, shall withdraw the appeal pending before any court of law or an appellate authority, after constitution of the committee by the Board under sub-section (2).

(4) The committee shall not commence the proceedings under sub-section (5) unless the order of withdrawal by the appellate authority is communicated to the Board: Provided that if the order of withdrawal is not communicated within forty-five days of the appointment of the committee, the said committee shall be dissolved and provision of this section shall not apply.

(5) The committee constituted under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of customs or any other person to conduct an audit and shall decide the dispute by majority, within ninety days of its constitution in respect of the resolution of dispute as it deems fit: Provided that in computing the aforesaid period of ninety days, the period, if any, for communicating the order of withdrawal under sub-section (4) shall be excluded.

(6) The recovery of duties and taxes payable by the applicant in connection with any dispute for which a committee has been appointed under sub-section (2) shall be deemed to have been stayed on withdrawal of appeal upto the date of decision by the committee.

144 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(7) The decision of the committee under sub-section (5) shall be binding on the Collector and the aggrieved person.

(8) If the committee fails to make recommendations within a stipulated period of ninety days under sub-section (5), the Board shall dissolve the committee by an order in writing and the matter shall be decided by the appellate authority which issued the order of withdrawal under sub-section (4) and the appeal shall be treated to be pending before such appellate authority as if the appeal had never been withdrawn.

(9) The Board shall communicate the order of dissolution to the court of law or the appellate authority and the Collector and the aggrieved person.

(10) The aggrieved person, on receipt of the order of dissolution, shall communicate the order to the appellate authority, which shall decide the appeal within six months of the communication of the said order.

(11) The aggrieved person may make payment of customs duty and other taxes as determined by the committee under sub- section (5) and all decisions, orders and judgments made or passed shall stand modified to that extent.

(12) The Board may prescribe the amount to be paid as remuneration for the services of the members of the committee, other than the member appointed under clause (a) of sub-section (2).

(13) The Board may, by notification in the official Gazette make rules for carrying out the purposes of this section, including the procedures and manner of conducting of ADR committee meetings.”;

(30) in section 200, in the proviso, after the word “importer”, the words “or exporter” shall be inserted;

(31) in section 202, for the expression “,Central Excise and Sales Tax” and the expression “,Central Excise or Sales Tax”, wherever occurring, the words “ or Inland Revenue” shall be substituted;

(32) in section 203, after the word “fees”, occurring at the end, the words “as provided under the rules prescribed by the Board” shall be inserted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 145

(33) in section 212A, in sub-section (2), the words “with approval of Federal Government” shall be omitted;

(34) 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

(35) 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.

(1) The due date for payment of tax chargeable under this Act shall be on or before the 30th June, 2019: Provided that after the due date under this sub-section, the tax shall be paid on or before the 30th June, 2020 along with default surcharge at the rates given in clause (2) of the Schedule to this Act.

(2) The tax in respect of foreign assets or foreign currency held in Pakistan shall be paid in foreign currency according to the procedure prescribed by the State Bank of Pakistan, in the mode and manner provided in section 9.

(3) If a person fails to pay tax and default surcharge according to this section, the declaration made shall be void and shall be deemed to have never been made under this Act.

(4) Notwithstanding the provisions of clause (g) of section 11, in case of outstanding demand at the time of filing of declaration, the declarant may pay the amount of such tax determined by the Officer of Inland Revenue, under the provisions of the Sales Tax Act, 1990 or the Income Tax Ordinance, 2001

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 227 (XLIX of 2001), or the Federal Excise Act, 2005, without payment of default surcharge and penalty.

(5) Where a person declares undisclosed sales and in case of undisclosed assets or undisclosed expenditures resulting from such sales, he is also required to declare such assets or such expenditures or both and pay tax at the rates specified in the Schedule to this Act on such assets or expenditures or both in addition to tax on such sales.

(6) Where the declarant has paid tax under this section, no tax shall be payable by the declarant under the Income Tax Ordinance, 2001 (XLIX of 2001), in respect of undisclosed assets and undisclosed expenditures.

(7) Where the declarant has paid tax under this section, no tax shall be payable by the declarant under the Sales Tax Act, 1990 or the Federal Excise Act, 2005 in respect of undisclosed sales. The Federal Government may approve grant-in- aid for individual, public and private institutions, local bodies and other non- political institutions and associations as it may consider appropriate in the manner as may be prescribed.

7. Amendments of Port Qasim Authority Act, 1973 (XLIII of 1973)

In the Port Qasim Authority Act, 1973 (XLIII of 1973),-

(1) after section 56, the following new section shall be inserted, “56A. Surplus to be remitted to Federal Consolidated Fund.- Any surplus of receipts over the actual expenditure in a year, after payment of tax, shall be remitted to the Federal Consolidated Fund (FCF) and any deficit from the actual expenditure shall be made up by the Federal Government to the extent of funds deposited in FCF.” ; and

(2) after section 60, the following new section shall be inserted, “60A. Fines and penalties to be credited to the Federal Consolidated Fund.-All fines and penalties recovered by the Authority shall be credited to the Federal Consolidated Fund.”.

(1) Where a declarant has paid tax under section 6 in respect of undisclosed assets, sales and expenditure the declarant shall be entitled to incorporate such assets, sales or expenditure in his return, wealth statement or financial statement irrespective of the fact that the asset, sales or expenditure were relatable to a year which is barred by time for the purpose of revision of return of income or wealth statement, as the case may be.

(2) No allowance, credit or deduction under any law for the time being in force shall be available for assets so incorporated.

(1) Grants made to the Government by a foreign Government or by any other person shall be received by the Economic Affairs Division and Finance Division on behalf of the Government.

(2) The Finance Division shall, in collaboration with representatives of donors, reach agreements and issue instructions concerning the management of such grants.

8. Amendments of Abandoned Properties (Management) Act, 1975 (XX of 1975)

In the Abandoned Properties (Management) Act, 1975 (XX of 1975),-

(1) in section 16, in sub-section (2), clause (k) shall be omitted;

(2) in section 19, in sub-section (1), after the expression “thereof”, the expression “Any surplus of receipts over the actual expenditure in a year shall be remitted to the Federal Consolidated Fund.” shall be added; and

146 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(3) section 29 shall be re-numbered as sub-section (1) of that section and thereafter the following new sub-section shall be added, “(2) The sale proceeds of abandoned property, including the amounts already received, shall be deposited in the Federal Consolidated Fund: Provided that the deposited amounts shall in the prescribed manner be refunded in the light of any court order, international settlement, etc.”.

(1) The Commissioner may amend an assessment order where the imputed income is less than the amount on which tax was deducted or collected under rule 1 or on the basis of definite information acquired from an audit or otherwise, the Commissioner is satisfied that-

(a) any income chargeable to tax has escaped assessment; or

(b) total income has been under-assessed, or assessed at too low a rate, or has been the subject of excessive relief or refund; or

(2) Notwithstanding the provisions of sub-rule (1), where a provisional assessment has been treated as final assessment or where in response to the provisional assessment, return has been filed within forty- five days or where assessment has been amended under sub-rule (1) and the assessment order is considered erroneous in so far it is prejudicial to the interest of revenue, the Commissioner may, after making or causing to be made, such enquiries as he deems necessary, amend the assessment order.

(3) For the purposes of sub-rule (1), “definite information” shall have the same meaning as defined in sub-section (8) of section 122.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 215 The declaration made shall be valid, if-

(a) cash held by the declarant is deposited into a bank account in the manner specified at the time of declaration and is retained in such bank account up to the 30th June, 2019: Provided that this clause shall not apply to an individual who cannot deposit cash in the bank account on the 30th June, 2019 on account of investment in immovable property or business, subject to payment of tax at a rate which is 2% more than the normal rate prescribed in the Schedule: Provided further that such person shall provide particulars of the immovable property or investment in business as prescribed in the declaration form; or

228 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(b) the foreign currency held in Pakistan declared under section 3 is deposited into declarant’s own foreign currency bank account at the time of declaration and is retained in such account till the 30th June, 2019; or

(c) the repatriated foreign liquid asset is deposited into declarant’s own Pak Rupee account or his foreign currency bank account in Pakistan or is invested into Pakistan Banao Certificates or any foreign currency denominated bonds issued by the Federal Government; or

(d) foreign liquid assets not repatriated to Pakistan shall be deposited in declarant’s foreign bank account on or before the 30th June, 2019. The Federal Government shall, in respect of every financial year cause to be laid before the National Assembly, Finance Bill consistent with Article 73 of the Constitution including a statement of estimated tax expenditure of the Federal Government.

9. Amendment of Pakistan Civil Aviation Authority Ordinance, 1982 (XXX of 1982)

In the Pakistan Civil Aviation Authority Ordinance, 1982 (XXX of 1982), after section 15, the following new section shall be inserted, “15A. Surplus to be remitted to Federal Consolidated Fund.-Any surplus of receipts over the actual expenditure in a year, after payment of tax, shall be remitted to the Federal Consolidated Fund (FCF) and any deficit from the actual expenditure shall be made up by the Federal Government to the extent of funds deposited in FCF.”. The provisions of this Ordinance not specifically dealt with in the aforesaid rules shall apply, mutatis mutandis, in the case of proceedings against the persons not appearing on active taxpayers’ list. 10. The provisions of this Schedule shall not apply on tax collectible or deductible in case of the following sections:-

(a) tax deducted under section 149;

(b) tax deducted under section 152 other than sub-section (1), (1AA), (2), (2A)(b) and (2A)(c) of section 152;

(d) tax deducted under section 155;

(e) tax deducted under section 156B;

(f) tax deducted under section 231A;

(g) tax deducted under section 231AA;

(h) tax collected under section 233AA;

(i) tax deducted under section 235;

(j) tax deducted under section 235A;

(k) tax collected under section 235B;

(l) tax collected under section 236;

(m) tax collected under section 236B;

(n) tax collected under section 236D;

(o) tax collected under section 236F;

(p) tax collected under section 236I;

(q) tax collected under section 236J ;

(r) tax collected under section 236L;

216 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(s) tax collected under section 236P;

(t) tax collected under section 236Q;

(u) tax collected under section 236R;

(v) tax collected under section 236U;

(w) tax collected under section 236V;

(x) tax collected under section 236X.”. The State Bank of Pakistan shall notify the mode and manner of-

(a) repatriation of assets to Pakistan;

(b) deposit of tax in foreign currency through State Bank of Pakistan; and

(1) The Federal Government shall, in respect of every financial year, cause to be laid before the National Assembly a medium-term performance based budget along with the Annual Budget Statement.

(2) For each principal accounting officer, the medium-term performance based budget may include policy and goals, past and future expenditure, outputs and outcomes and related performance indicators and targets.

10. Amendments of National Database and Registration Authority Ordinance, 2000 (VIII of 2000)

In the National Database and Registration Authority Ordinance, 2000 (VIII of 2000).-

(1) after section 26, the following new section shall be inserted, “26A. Surplus to be remitted to Federal Consolidated Fund.- Any surplus of receipts over the actual expenditure in a year, after payment of tax, shall be remitted to the Federal Consolidated Fund (FCF) and any deficit from the actual expenditure shall be made up by the Federal Government to the extent of funds deposited in FCF.” ;and

(2) after section 30, the following new section shall be inserted, “30A. Fines and penalties to be credited to the Federal Consolidated Fund.- All fines and penalties recovered by the Authority shall be credited to the Federal Consolidated Fund.”.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 147 Any amount of tax or default surcharge paid under the provisions of this Act shall not be refundable. If in respect of any financial year it is found-

236 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(a) that the amount authorized to be expended for a particular service for the current financial year is insufficient, or that a need has arisen for expenditure upon some new service not included in the Annual Budget Statement for that year; or

(b) that any money has been spent on any service during a financial year in excess of the amount granted for that service for that year, the Federal Government shall have power, as prescribed, to authorize expenditure from the Federal Consolidated Fund, whether the expenditure is charged by the Constitution upon that Fund or not, and shall cause to be laid before the National Assembly Supplementary Budget Statement or, as the case may be, an Excess Budget Statement, setting out the amount of that expenditure, and the provisions of Articles 80 to 83 shall apply to those statements as they apply to the Annual Budget Statement.

11. Amendments of Sales Tax Act, 1990

In the Sales Tax Act, 1990, the following further amendments shall be made, namely:-

(1) in section 2,-

(a) for clause (5AB), the following shall be substituted, “(5AB) “cottage industry” means a manufacturing concern, which fulfils each of following conditions, namely:-

(a) does not have an industrial gas or electricity connection;

(b) is located in a residential area;

(d) annual turnover from all supplies does not exceed three million Rupees;”;

(b) in clause (11A),-

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

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

(c) in clause (27), after the word “manufacturer”, the expression “or importer, in case of imported goods” shall be inserted;

(d) in clause (33), in the proviso, for the words “Federal Government”, the expression “Board, with the approval of the Federal Minister-in-charge,” shall be substituted;

(e) in clause (43), for the words “Federal Government”, the expression “Board, with the approval of the Federal Minister- in-charge,” shall be substituted;

(f) in clause (43A),-

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

148 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(ii) in sub-clause (d), after the semi-colon at the end, the word “and” shall be inserted, and thereafter the following new clause (e) shall be added, namely:- “(e) a retailer, whose shop measures one thousand square feet in area or more.”; and

(g) in clause (46),-

(i) in sub-clause (d), after the word “goods”, the expression “excluding those as specified in the Third Schedule” shall be inserted;

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

(iii) for clause (f), the following shall be substituted, “(f) in case of manufacture of goods belonging to another person, the actual consideration received by the manufacturer for the value addition carried out in relation to such goods;”; and

(iv) after clause (g), for full stop at the end a semicolon shall be substituted and thereafter the following new clauses shall be added, namely:- “(h) in case of supply of electricity by an independent power producer, the amount received on account of energy purchase price only and the amount received on account of capacity purchase price, energy purchase price premium, excess bonus, supplemental charges etc. shall not be included in the value of supply; and

(i) in case of supply of electric power and gas by a distribution company, the total amount billed including price of electricity and natural gas, as the case may be, charges, rents, commissions and all duties and taxes, local, provincial and federal but excluding the amount of late payment surcharge and the amount of sales tax”;

(2) in section 3,-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 149

(a) for sub-section (1B), the following shall be substituted, “(1B) On the goods specified in the Tenth Schedule, in lieu of levying and collecting tax under sub-section (1), the tax shall be levied and collected, in the mode and manner specified therein-

(a) on the production capacity of plants, machinery, undertaking, establishments or installation producing on manufacturing such goods; or

(b) on fixed basis, from any person who is in a position to collect such tax due to the nature of the business, and different rates may be so prescribed for different regions or areas.”;

(b) in sub-section (2), in clause (a),-

(i) after the word “supplies”, occurring for the first time, the words “and import of goods” shall be inserted;

(ii) after the word “supplies”, occurring for the second time, the words “or imports” shall be inserted;

(iii) after the word “manufacturer”, the expression “, or the importer, in case of imported goods,” shall be inserted; and

(iv) in the proviso, after the word “supply”, occurring twice, the words “or import” shall be inserted;

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

(d) for sub-section (7), the following shall be substituted, “(7) The tax shall be withheld by the buyer at the rate as specified in the Eleventh Schedule, by any person or class of persons as withholding agent for the purpose of depositing the same, in such manner and subject to such

150 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I conditions or restrictions as the Board may prescribe in this behalf through a notification in the official Gazette.”;

(e) in sub-section (9),-

(i) after the word “retailers”, the expression “, other than those falling in Tier-1,” shall be inserted;

(ii) for the expression “subject to the exclusions, procedure, restrictions and limitations as prescribed in Chapter II of the Sales Tax Special Procedure Rules, 2007”, the expression “and the electricity supplier shall deposit the amount so collected directly without adjusting against his input tax” shall be substituted; and

(iii) in the proviso, for full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:- “Provided further that the Commissioner of Inland Revenue having jurisdiction shall issue order to the electricity supplier regarding exclusion of a person who is either a Tier-1 retailer, or not a retailer.”; and

(f) for sub-section (9A), the following shall be substituted, “(9A) Notwithstanding anything contained in this Act, Tier-1 retailers shall pay sales tax at the rate as applicable to the goods sold under relevant provisions of this Act or a notification issued there under: Provided that the customers of a Tier-1 retailer shall be entitled to receive a cash back of up to five percent of the tax involved, from such date, in the manner and to the extent, as may be prescribed by the Board: Provided further that from such date, and in such mode and manner, as prescribed by the Board, all Tier-1 retailers shall integrate their retail outlets with Board’s computerized system for real-time reporting of sales.”;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 151

(3) in section 4,-

(a) for clause (c), the following shall be substituted, namely:- “(c) such other goods, as the Federal Government may specify by notification in the official Gazette, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements:”; and

(b) clause (d) shall be omitted;

(4) in section 7,-

(a) in sub-section (2), in clause (i), for the words “for which a return is furnished”, the expression “, or in case of supply of electricity or gas, a bill bearing his registration number and the address where the connection is installed” shall be substituted; and

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

(5) in section 7A, for sub-section (2), the following shall be substituted, namely:- “(2) Notwithstanding anything contained in this Act or the rules made thereunder, in respect of the goods or class of goods specified in the Twelfth Schedule, the minimum value addition tax, against the value added by the registered person, shall be payable, at the rate and by the registered persons or class of registered persons, specified therein, subject to the conditions, limitations, restrictions and procedure specified therein: Provided that the Federal Government may, through a notification published in the official Gazette, amend any provision of the said Twelfth Schedule.”;

(6) in section 8,-

152 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(a) in sub-section (1), for clause (m), the following shall be substituted, namely:- “(m) the input goods attributable to supplies made to un- registered person, on pro-rata basis, for which sale invoices do not bear the NIC number or NTN, as the case may be, of the recipient as stipulated in section 23.”; and

(b) in sub-section (6), for the words “Federal Government”, the expression “Board, with the approval of the Federal Minister- in-charge,” shall be substituted;

(7) in section 8B, after sub-section (5), the following sub-section shall be added, namely:- “(6) In case a Tier-1 retailer does not integrate his retail outlet in the manner as prescribed under sub-section (9A) of section 3, during a tax period or part thereof, the adjustable input tax for whole of that tax period shall be reduced by 15%.”;

(8) in section 10, in sub-section (1), in the second proviso, for the words “along with duty drawback at the rates”, the words “at the fixed rates and in the manner as” shall be substituted;

(9) in section 13, in sub-section (2), for clause (a), the following shall be substituted, namely:- “(a) the Federal Government may, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements, by notification in the official Gazette, exempt anysupplies made or imports, of any goods or class of goods from the whole or any part of the tax chargeable under this Act, subject to the conditions and limitations specified therein;”;

(10) in section 23, in sub-section (1),-

(a) after the word “particulars”, the expression “, in Urdu or English language,” shall be inserted;

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 153 “(b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer. Explanation.-For the purpose of this clause, ordinary consumer means a person who is buying goods for his own consumption and not for the purpose of re- sale or processing: Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;”; and

(c) in clause (d), after the word “description”, the expression “, including count, denier and construction in case of textile yarn and fabric,” shall be inserted; “(d) after clause (g), in the second proviso, for full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:- “Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.”;

(11) in section 25, in sub-section (2), in second proviso, for the colon at the end, a full stop shall be substituted and the third proviso thereafter shall be omitted;

(12) in section 26, in sub-section (3), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be “Provided that the approval under this sub-section shall not be required if revised return is filed within sixty days of filing of return and either the tax payable therein 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.”;

(13) in section 30A, in sub-section (1), for the word “post”, the word “appoint” shall be substituted;

154 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(14) in section 33, in the Table, in column (1), against serial number 1, in column (2),-

(a) for the word “five”, the word “ten” shall be substituted; and

(b) in the proviso, for the word “one”, the word “two” shall be substituted;

(15) after section 33, the following new section shall be inserted, “33A. Proceedings against authority and persons.-(1) Subject to section 51, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in sections 30 to 30DDD, including any officer or official subordinate to the aforesaid authority, who willfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

(16) in section 37B,-

(a) for the words “a Sales Tax Officer”, wherever occurring, the words “an officer of Inland Revenue” shall be substituted;

(b) for the words “the Sales Tax Officer”, wherever occurring, the words “an officer of Inland Revenue” shall be substituted; and

(c) in sub-section (13), for the words “Federal Government”, the expression “Board, with the approval of the Federal Minister- in-charge,” shall be substituted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 155

(17) in section 47A, in sub-section (2), in clause (ii), for sub-clause (a), the following shall be substituted, namely:- “(a) chartered accountants, cost and management accounts and advocates having more than ten years experience in the field of taxation; and”;

(18) for section 58, the following shall be substituted, namely:- “58. Liability for payment of tax in case of private companies or business enterprises.-(1) Notwithstanding anything contained in the Companies Act, 2017 (XIX of 2017), where any private company or business enterprise is wound up and any tax chargeable on the company or business enterprise, whether before, or in the course, or after its liquidation, in respect of any tax period cannot be recovered from the company or business enterprise, every person who was an owner of, or partner in, or director of, or a shareholder, owning not less than ten per cent of the paid-up capital, in the company or business enterprise, as the case may be, during the relevant period shall jointly and severally with such persons, be liable for the payment of such tax.

(2) Any director or partner who pays tax under sub-section (1) shall be entitled to recover the tax paid from the company or a share of the tax from any other director or partner, as the case may be.

(3) A shareholder who pays tax under sub-section (1) shall be entitled to recover the tax paid from the company or from any other shareholder, owning not less than ten percent of the paid up capital, in proportion to the shares owned by that other shareholder.

(4) The provisions of this Act shall apply to any amount due under this section as if it were tax due under an order for assessment made under this Act.”;

(19) in section 67A,-

(a) the expression “(Private)”, wherever occurring, shall be omitted; and

156 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(b) in sub-section (12), for the expression “Federal Government”, the expression “Board, with the approval of the Federal Minister-in-charge,” shall be substituted;

(20) in section 71, in sub-section (1), for the expression “Notwithstanding anything contained in this Act, the Federal Government”, the words “The Board” shall be substituted;

(21) in section 72B, after sub-section (1), following new sub-section shall be inserted, namely:- “(1A) Notwithstanding anything contained in this Act or any other law, for the time being in force, the Board shall keep the selection parameters confidential.”;

(22) after section 75, the following new section shall be added, “76. Fee and service charges.- The Federal Government may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, levy fee and service charges for valuation, in respect of any other service or control mechanism provided by any formation under the control of the Board, including ventures of public- private partnership, at such rates as may be specified in the notification.”;

(23) in the Third Schedule, in column (1), after Serial No. 37 and entries relating thereto in columns (2) and (3), the following new Serial No. and corresponding entries relating thereto shall be “38. Household electrical goods, including air Respective headings conditioners, refrigerators, deep freezers, televisions, recorders and players, electric bulbs, tube-lights, electric fans, electric irons, washing machines and telephone sets. 39. Household gas appliances, including cooking Respective headings range, ovens, geysers and gas heaters. 40. Foam or spring mattresses and other foam Respective headings products for household use. 41. Paints, distempers, enamels, pigments, colours, Respective headings varnishes, gums, resins, dyes, glazes, thinners, blacks, cellulose lacquers and polishes sold in retail packing

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 157

Lubricating oils, brake fluids, transmission Respective headings fluid, and other vehicular fluids sold in retail packing. 43. Storage batteries excluding those sold to Respective headings automotive manufacturers or assemblers 44. Tyres and tubes excluding those sold to Respective headings automotive manufacturers or assemblers 47. Biscuits in retail packing with brand name Respective Headings assemblers

(24) in the Fifth Schedule, in the Table, in column (1), against serial number 12, in column (2), for the expression “specified in Chapter XIV of the Sales Tax Special Procedure Rules, 2007”, the words “prescribed by the Board” shall be substituted”;

(i) against Serial No. 2 and 3, in column (2), after the word inserted;

industry, other than wheat and meslin flour, as sold trademark” shall be inserted; and

omitted;

(iii) Serial No. 36 and 37 and entries relating thereto in columns (2) and (3) shall be omitted;

(iv) against Serial No. 52A, in column (2), after the word natural gas,” shall be inserted;

158 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(v) against Serial No. 72, in column (2), after the word “Meat”, the expression “whether or not fresh, frozen or otherwise, preserved or packed” shall be added;

(vi) against Serial No. 73A, in column (3), the expression “04.01 and” shall be omitted;

(vii) against Serial No. 85, in column (2), after the word “milk”, the expression “, excluding that sold in retail packing under a brand name or a trademark” shall be added;

(viii) serial number 95 and entries relating thereto in columns

(2) and (3) shall be omitted; and

(ix) after Serial No. 150 and entries relating thereto in columns (1), (2) and (3), the following new Serial No

(b) imports of plant, machinery, equipment for inputs by the industries located in the tribal areas, as defined in the Constitution of Islamic Republic of Pakistan,- issued thereunder, would have not applied had omitted under the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018): Provided that, in case of imports, the Customs authorities on presentation of a post- payable under the Sales Tax Act, 1990, and installation certificate, as the case may be, in respect of goods imported as issued by the jurisdiction:

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 159

exemption is availed under this serial number, applicable rate on residual value Amendment) Act, 2018, till 30th June, 2023, to all residential and commercial consumers in tribal areas, and to such industries in the tribal industrial production before 31st May, 2018, but excluding steel and ghee or cooking oil industries supplies by the manufacturer on which federal excise duty is payable in sales tax mode

ginned cotton” shall be omitted; and

(ii) after Serial number 24 and entries relating thereto in columns (1), (2) and (3), the following new Serial No.

1512.2900”;

(i) against S. No. 14, for the entries in columns (1), (2), (3),

“14. Milk and cream, concentrated or 0402.1000 10% Sold in retail

(ii) (A) S. No. 18 and 21 and entries relating thereto in columns (2), (3), (4) and (5) shall be omitted;

160 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

figure “6”, the figure “10” shall be substituted; and

(xx) and the corresponding entry in column (3), the following shall be substituted, namely:-

control box, rigid mast pack, with or without scrapper

(iii) against S. No. 27, in column (3), for the figure “8432.3900” shall be substituted;

(iv) S. No. 32 and entries relating thereto in columns (2), (3), (4) and (5) shall be omitted;

(v) against S. No. 56, in columns (4) and (5), for the figure “65”, the figure “70” shall be substituted;

(vi) after S. No. 58 and entries relating thereto in columns corresponding entries relating thereto shall be added,

1103.1900, 1104.2200, 1104.2300, 1104.2900 and 1104.3000 trademark 7106.9190

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 161

unworked 7108.1210 condition and 7108.1290 precious metal. diamond, used therein, plus 3% of making charges restaurants, adjusted bakeries, caterers and sweetmeat shops headings during the last six months servicing CNG 2711.2100 sector and local supplies thereof

162 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

or preserved similar products of poultry meat or meat offal 1604.1600, 1604.1900, 1604.2010, 1604.2020 and 1604.2090

(27) in the Ninth Schedule, in the Table, in column (1), for S. No. 2 and following shall be substituted, namely:-

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 category:– exceeding US$ 100 not exceeding US$ 200 not exceeding US$ 350 not exceeding US$ 500

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 163

(28) after Ninth Schedule, amended as aforesaid, the following new Schedules shall be added, namely:-

“THE TENTH SCHEDULE

[See sub-section (1B) of section 3]

The tax on bricks, falling in PCT heading 6901.1000, shall be paid on fixed basis, on monthly return, at the rates specified in the Table below:-

TABLE

Attock, Chakwal, Jehlum, Mandi Bahauddin, Rs. 10,000 Chiniot, Faisalabad, Jhang, Toba Tek Singh, Okara and Sahiwal districts Bahawalnagar, Rahim Yar Khan districts; and Sindh, Khyber-Pakhtunkhwa and Baluchistan provinces

THE ELEVENTH SCHEDULE

[see sub-section (7) of section 3]

TABLE

The rates for withholding or deduction by the withholding agent shall not be applicable to goods and supplies specified after the end of this Table

1/5th 1. (a) Federal and provincial government Registered of Sales Income Tax Ordinance, 2001 (XLIX of 2001)

164 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(a) Federal and provincial government Person 1/10th of Sales Income Tax Ordinance, 2001 (XLIX distributor of 2001) 3. Federal and provincial government Unregistered Whole of the supplies 4. Companies as defined in the Income Unregistered 5% of gross supplies 5. Registered persons as recipient of Person Whole of sales advertisement services 6. Registered persons purchasing cane Unregistered Whole of sales

(i) Electrical energy;

(ii) Natural gas;

(iii) Petroleum products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealers of motor spirit and high speed diesel;

(iv) Vegetable ghee and cooking oil;

(v) Telecommunication services;

(vi) Goods specified in the Third Schedule to the Sales Tax Act, 1990;

(vii) Supplies made by importers who paid value addition tax on such goods at the time of import; and

(viii) Supplies made by an Active Taxpayer as defined in the Sales Tax Act, 1990 to another registered persons with exception of advertisement services.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 165 THE TWELFTH SCHEDULE [See sub-section (2) of section 7A] TABLE S. No. Goods or class of goods PCT Heading Rate

(1) (2) (3) (4) 1. All imported goods subject to Respective 3% ad valorem exclusions as in conditions and Heading procedure given after the Table Procedure and conditions:-

(1) The sales tax on account of minimum value addition as payable under this Schedule (hereinafter referred to as value addition tax), shall be levied and collected at import stage from the importer on all taxable goods as are chargeable to tax under section 3 of the Act or any notification issued thereunder at the rate specified in the Table in addition to the tax chargeable under section 3 of the Act or a notification issued thereunder:

(2) The value addition tax under this Schedule shall not be charged on,-

(i) Raw materials and intermediary goods meant for use in an industrial process which are subject to customs duty at a rate less than 16% ad valorem under First Schedule to the Customs Act, 1969;

(ii) The petroleum products falling in Chapter 27 of Pakistan Customs Tariff as imported by a licensed Oil Marketing Company for sale in the country;

(iii) Registered service providers importing goods for their in-house business use for furtherance of their taxable activity and not intended for further supply;

(iv) Cellular mobile phones or satellite phones;

(v) LNG / RLNG;

(vi) second hand and worn clothing or footwear (PCT Heading 6309.000);

166 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(vii) gold, in un-worked condition; and

(viii) silver, in un-worked condition.

(3) The value addition tax paid at import stage shall form part of input tax, and the importer shall deduct the same from the output tax due for the tax period, subject to limitations and restrictions under the Act, for determining his net liability. The excess of input tax over output tax shall be carried forwarded to the next tax period as provided in section 10 of the Act.

(4) In no case, the refund of excess input tax over output tax, which is attributable to tax paid at import stage, shall be refunded to a registered person.

(5) The registered person, if also dealing in goods other than imported goods, shall be entitled to file refund claim of excess carried forward input tax for a period as provided in section 10 or in a notification issued there under by the Board after deducting the amount attributable to the tax paid at import stage i.e. sum of amounts paid during the claim period and brought forward to claim period. Such deducted amount may be carried forward to subsequent tax period.”. The provisions of this Act shall not apply to-

(a) holders of public office;

(b) a public company as defined under clause (47) of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001);

(d) gold, precious metals, precious stones or jewelry, except gold held as stock-in-trade by a jeweler;

(e) bearer prize bonds;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 229

(f) bearer securities, bearer shares, bearer certificates, bearer bonds or any other bearer assets; or

(g) proceedings pending in any court of law. Principal accounting officers may sanction, at any time before the close of the financial year, re-appropriation of funds from one expenditure item to another within a budget grant in the manner as may be prescribed.

12. Amendments of Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001)

In the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (XLII of 2001), in the Schedule, the following further amendments shall be made, namely:-

(a) against S. No. 41 in column (1) for the words “eighteen and a half”, the word “seventeen” shall be substituted; and

(b) after S. No. 42 in column (1), and the entries relating thereto in columns (2), (3) and (4), the following new S. No. and corresponding entries relating thereto shall be added, namely:- “43. Advertisement on hoarding boards, 9802.9000 Sixteen percent pole signs and signboards, and websites or internet 44. Services provided by landscape 9814.4000 Sixteen percent designers 45. Sponsorship services 9805.9100 Sixteen percent 46. Services provided or rendered by 9815.2000 Sixteen percent legal practitioners and consultants 47. Services provided by accountants 9815.3000 Sixteen percent and auditors

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 167

Service provided or rendered by 9819.1000, Sixteen percent 9819.9090 49. Services provided by race clubs: - - Sixteen percent Entry/ admission and other services 50. Services provided or rendered by 9815.9000 Sixteen percent corporate law consultants 51. Visa processing services, including - - Sixteen percent advisory or consultancy services for migration or visa application filing services 52. Debt collection services and other - - Sixteen percent debt recovery services services 54. Services provided or rendered by - - Sixteen percent transportation or carriageof goods by road or through pipeline or conduit 57. Training or coaching services other - - Sixteen percent than education services 58. Cleaning services including janitorial 9822.2000, Sixteen percent”. 9822.9000

Notwithstanding anything contained in any other law for the time being in force, nothing contained in any declaration made under this Act shall be admissible in evidence against the declarant for the purpose of any proceedings relating to imposition of penalty or adverse action or for the purposes of prosecution under any law.

(1) All Ministries and Divisions, their attached departments and sub-ordinate offices and autonomous organizations shall surrender to the Finance Division at least twenty-five days before the presentation of the budget in the National Assembly, all anticipated savings in the grants or assignment accounts or grant-in-aid controlled by them.

(2) The Finance Division shall communicate the acceptance of such surrenders before close of the financial year and where requirement is justified, shall provide for equivalent amount in the next financial year budget. CHAPTER III DEVELOPMENT PROJECTS AND MAINTENANCE AND USE OF PUBLIC ASSETS

13. 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:-

(A) clause (1A) shall be re-numbered as clause (1B) and after

168 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I “(1A) “active taxpayers’ list” means the list instituted by the Board under section 181A and includes such list issued by the Azad Jammu and Kashmir Central Board of Revenue or Gilgit-Baltistan Council Board of Revenue”; (B) after clause (5B), the following new clause shall be inserted, “(5C) “asset move” means the transfer of an offshore asset to an unspecified jurisdiction by or on behalf of a person who owns, possesses, controls or is the beneficial owner of such offshore asset for the purpose of tax evasion;”; (C) after clause (22B), the following new clause shall be inserted “(22C) “FBR Refund Settlement Company Limited” means the company with this name as incorporated under the Companies Act, 2017 (XIX of 2017), for the purposes of settlement of income tax refund claims including payment by way of issuing refund bonds under section 171A;”; (D) clause (23A) shall be omitted; (E) clause (35C) shall be omitted; (F) after clause (38A), the following new clauses shall be inserted, namely:- “(38AA) “offshore asset” in relation to a person, includes any movable or immovable asset held, any gain, profit, or income derived, or any expenditure incurred outside Pakistan; (38AB) “offshore evader” means a person who owns, possesses, controls, or is the beneficial owner of an offshore asset and does not declare, or under declares or provides inaccurate particulars of such asset to the Commissioners.; (38AC) “offshore enabler” includes any person who, enables, assists, or advises any person to plan, design, arrange or manage a transaction or declaration relating to an

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 169 offshore asset, which has resulted or may result in tax evasion;”; (G) after clause (60), the following new clause shall be inserted, “(60A) “specified jurisdiction” means any jurisdiction which has committed to automatically exchange information under the Common Reporting Standard with Pakistan;”; and (H) after clause (73), the following new clause shall be inserted, “(73A) “unspecified jurisdiction” means a jurisdiction which is not a specified jurisdictions.”;

(2) in section 4B, in sub-section (2), in clause (iv), after the word “computed”, the expression “(other than brought forward depreciation, brought forward amortization and brought forward business losses)” shall be inserted;

(3) in section 7B, for sub-section (3), the following shall be substituted, namely:- “(3) This section shall not apply to a profit on debt that-

(a) is exempt from tax under this Ordinance; or

(b) exceeds thirty six million Rupees.”;

(4) in section 15A, after sub-section (6), the following new sub-section shall be added, namely:- “(7) Notwithstanding sub-section (6) of section 15, the provisions of this section shall apply to an individual or an association of persons deriving income exceeding Rs. 4 million under section 15, who opts to pay tax at the rate specified in Division I of Part I of the First Schedule;”;

(5) in section 21, after clause (c), the following new clause shall be inserted, namely:- “(ca) any amount of commission paid or payable in respect of supply of products listed in the Third Schedule of the Sales

170 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Tax Act, 1990, where the amount of commission paid or thereof unless the person to whom commission is paid or taxpayer list under this Ordinance;”;

(A) for sub-section (4), the following shall be substituted,

“(4) An intangible that does not have an ascertainable useful life shall be treated as if it had a normal useful life of twenty-five years.”; and

(B) in sub-section (11), after the expression “land)”, the expression

“but shall not include self-generated goodwill or any adjustment arising on account of accounting treatment in the manner as may be prescribed” shall be inserted;

(A) in sub-section (1A), for the words “arising on the disposal of

(3A) and (3B)” shall be substituted; and

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

“(3A) Notwithstanding anything contained in sub-section (3), computed in accordance with the formula specified in the Table below, namely:-

TABLE

one year but does not exceed eight years

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 171

sub-section (2).

(3B) Notwithstanding anything contained in sub-section (3), immovable property being a constructed property shall be computed in accordance with the formula specified in the Table below, namely:-

TABLE

not exceed one year 2. Where the holding period of constructed property exceeds A x 3/4 one year but does not exceed four years four years sub-section (2).”;

(b) in clause (l), for full stop at the end, a semi colon and the word “and” shall be substituted; and

“(la) subject to sub-section (3), any amount or fair market value of any property received without consideration or grandparents, parents, spouse, brother, sister, son or a daughter.”;

(9) in section 53, in sub-section (2), the expression “removal of omitted;

(A) after the word “Pakistan”, wherever occurring, the expression “, Gilgit-Baltistan” shall be inserted; and

172 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I (B) for the word “company”, the words “public company as defined in the Companies Act, 2017 and” shall be substituted;

(11) in section 62A, in sub-section (1), the expression “being a filer”, wherever occurring, shall be omitted;

(12) after section 64B, the following new section shall be inserted, “64C. Tax credit for persons employing fresh graduates.-(1) A person employing freshly qualified graduates from a university or institution recognized by Higher Education Commission shall be entitled to a tax credit in respect of the amount of annual salary paid to the freshly qualified graduates for a tax year in which such graduates are employed.

(2) The amount of tax credit allowed under sub-section (1) for a tax year shall be computed according to the following formula, namely:- (A/B) x C where- A is the amount of tax assessed to the person for the tax year before allowance of tax credit under this section; B is the person’s taxable income for the tax year; and C is the lessor of -

(a) the annual salary paid to the freshly qualified graduates referred to in sub-section (1) in the year; and

(b) five percent of the person’s taxable income for the year;

(3) The tax credit shall be allowed for salary paid to the number of freshly qualified graduates not exceeding fifteen percent of the total employees of the company in the tax year.

(4) In this section, “freshly qualified graduate” means a person who has graduated after the first day of July, 2017 from any

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 173 institution or university recognized by the Higher Education Commission.” ;

(13) in section 65B,- (A) in sub-section (1), for full stop, occurring at the end, a colon shall be substituted and thereafter, the following provisos shall be added, namely:- Provided that for the tax year 2019 the rate of credit shall be equal to five percent of the amount so invested: Provided further that the provisions of sub-section (5) relating to carry forward of the credit to be deducted from tax payable, to the following tax years, as specified in the said sub-section, shall continue to apply after tax year 2019; and (B) in sub-section (2), for the figure “2021”, the figure “2019” shall be substituted;

(14) after section 75, the following new section shall be inserted, “75A. Purchase of assets through banking channel.-(1) Notwithstanding anything contained in any other law, for the time being in force, no person shall purchase-

(a) immovable property having fair market value greater than five million Rupees; or

(b) any other asset having fair market value more than one million Rupees, otherwise than by a crossed cheque drawn on a bank or through crossed demand draft or crossed pay order or any other crossed banking instrument showing transfer of amount from one bank account to another bank account.

(2) For the purposes of this section in case of immoveable property, fair market value means value notified by the Board under sub-section (4) of section 68 or value fixed by the provincial authority for the purposes of stamp duty, whichever is higher.

(3) In case the transaction is not undertaken in the manner specified in sub-section (1),-

174 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(a) such asset shall not be eligible for any allowance under sections 22, 23, 24 and 25 of this Ordinance; and

(b) such amount shall not be treated as cost in terms of section 76 of this Ordinance for computation of any gain on sale of such asset.”;

(15) in section 82,-

(a) in clause (a), the word “or”, occurring at the end shall be omitted; and

(b) after clause (a), amended as aforesaid, the following new clause shall be inserted, namely:- “(ab) is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and twenty days or more in the tax year and, in the four years preceding the tax year, has been in Pakistan for a period of, or periods amounting in aggregate to, three hundred and sixty-five days or more; or”;

(16) after section 99B, the following new section shall be inserted, “99C. Special procedure for certain persons.-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, record keeping, filing of return and assessment in respect of small businesses, construction businesses, medical practitioners, hospitals, educational institutions and any other sector specified by the Federal Government, in such cities or territories, as may be specified therein.”;

(17) after section 100B, the following new section shall be inserted, “100BA. Special provisions relating to persons not appearing in active taxpayers’ list.-(1) The collection or deduction of advance income tax, computation of income and tax payable thereon shall be determined in accordance with the rules in the Tenth Schedule.

(2) The provisions of the Tenth Schedule shall have effect notwithstanding anything to the contrary contained in this Ordinance.”;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 175

(18) in section 100C,- (A) in sub-section (1), in clause (d), for full stop at the end a semicolon shall be substituted and thereafter the following new clauses shall be added, namely:- “(e) approval of the Commissioner has been obtained as per the requirement of clause (36) of section 2: Provided that this clause shall take effect from the first day of July, 2020; and

(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 descendents 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 (B) in sub-section (2), clause (c) shall be omitted;

(19) in section 107, in sub-section (1B), after the expression “(XCVI of 2002)”; the expression “subject to clause (a) of sub-section (3) of section 216 of this Ordinance” shall be inserted;

(20) after section 108, the following new sections shall be inserted, “108A. Report from independent chartered accountant or cost and management accountant.-(1) Where the Commissioner is of the opinion that a transaction has not been declared at arm’s length, the Commissioner may obtain report from an independent chartered accountant or cost and management accountant to determine the fair market value of asset, product, expenditure or service at the time of transaction.

(2) The scope, terms and conditions of the report shall be as may be prescribed.

(3) Where the Commissioner is satisfied with the report of the independent chartered accountant or cost and management accountant, the fair market value of asset, product, expenditure or service determined in the report shall be

176 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I treated as definite information for the purpose of sub-section

(8) of section 122.

(4) Where the Commissioner is not satisfied with the report of the independent chartered accountant or cost and management accountant, the Commissioner may record reasons for being not satisfied with the report and seek report from another independent chartered accountant or cost and management accountant, to determine the fair market value of asset, product, expenditure or service at the time of transaction.

(5) The Commissioner shall seek report under sub-section (1) or sub-section (3), as the case may be, with prior approval of the Board.

(1) Notwithstanding anything contained in this Act, where a declaration has been made by misrepresentation or suppression of facts in respect of the undisclosed assets declared therein, such declaration, to the extent of the asset to which such misrepresentation or suppression of facts relates to, shall be void and shall be deemed to have been never made under this Act.

(2) A declaration made under this Act shall not render any declaration made under the Foreign Assets (Declaration and Repatriation) Act, 2018 or the Voluntary Declaration of Domestic Assets Act, 2018. Projects defined in public sector development programme shall be classified as:-

(a) core projects in national infrastructure requiring complex planning, design and implementation procedures. The Planning Commission shall designate projects as such in accordance with the criteria notified in official Gazette; and

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 237

(b) sectoral projects, projects undertaken by specific sectors, Ministries and Divisions which are required to enhance the development of that sector or Ministry or Division and do not fall under the above category of core projects.

14. Amendments of Federal Excise Act, 2005

In the Federal Excise Act, 2005, the following further amendments shall be made, namely:-

(1) in section 2, in clause (23a), for the words “Federal Government”, the expression “Board, with the approval of the Federal Minister-in-charge,” shall be substituted;

(2) in section 3, after sub-section (5), the following new sub-section shall be inserted, namely:- “(5A) In respect of goods, specified in the Fourth 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 Fourth 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 duty shall be discharged accordingly.”;

(3) in section 7, in sub-section (2), for the words “Federal Government”, the expression “Board, with the approval of the Federal Minister- in-charge,” shall be substituted;

(4) in section 16, for sub-section (2), the following shall be substituted, “(2) The Federal Government may, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations and implementation of bilateral and multilateral agreements, by notification in the official Gazette, exempt subject to such conditions as may be specified therein, any goods or class of goods

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 217 or any services or class of services from the whole or any part of the duty leviable under this Act.”;

(5) in section 19, in sub-section (2),-

(a) in clause (b), the word “and” at the end shall be omitted; and

(b) in clause (c), after the semi-colon at the end, the word “and” shall be added, and thereafter, following new clause shall be added, “(d) a person who sells cigarettes in retail at a price lower than the retail price plus the amount of sales tax as printed thereon,”;

(6) after section 19, amended as aforesaid, the following new section shall be inserted, namely:- “19A. Proceedings against authority and persons.-(1) Subject to section 41, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in section 29, including any officer or official subordinate to the aforesaid authority, who willfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

(7) in section 22, in sub-section (13), for the words “Federal Government”, the expression “Board, with the approval of the Federal Minister- in-charge,” shall be substituted;

(8) in section 38, in sub-section (2), in clause (ii), for sub-clause (a), the following shall be substituted, namely:- “(a) chartered accountants, cost and management accounts and advocates having more than ten years experience in the field of taxation; and”;

218 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(9) after section 48, the following new section shall be added, “49. Fee and service charges.-The Federal Government may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, levy fee and service charges for valuation, in respect of any other service or control mechanism provided by any formation under the control of the Board, including ventures of public-private partnership, at such rates as may be specified in the notification.”;

(10) In the First Schedule,- (A) in the Table, in column (1),-

(a) against S. No. 1, in column (4), for the word “sixteen”, the word “seventeen” shall be substituted;

(b) for S. No. 2, and entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:- “2. Vegetable ghee and cooking oil Respective

(a) in retail packing heading Seventeen per cent of retail price

(b) not in retail packing Seventeen per cent ad val.”;

(d) against S. No. 7, in column (4), for the words “three hundred”, the word “ten” shall be substituted;

(e) for S. No. 9 and 10 and the entries relating thereto in columns (2), (3) and (4), the following shall be substituted, “9. Locally produced cigarettes 24.02 Rupees five if their on-pack printed retail thousand two price exceeds five thousand hundred per nine hundred and sixty thousand rupees per thousand cigarettes cigarettes.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 219

(f) S. No. 10a and entries relating thereto in columns (2), (3) and

(4) shall be omitted;

(g) against S. No. 13, in column (4), for the words “one rupee and fifty paisa”, the words “two rupees” shall be substituted;

(h) against S. No. 31, in column (4), for the words “Seventeen rupees and eighteen paisa per hundred cubic meters”, the (MMBTu)” shall be substituted;

(i) S. No. 54 and entries relating thereto in columns (2), (3) and

(4) shall be omitted;

(j) for serial numbers 55 and 55A, and the entries relating thereto in columns (2), (3) and (4), the following shall be substituted,

wagons and racing cars exceeding 3001cc

(k) for S. No. 55B and entries relating thereto in columns (2), (3) and (4),the following shall be substituted, namely:-

220 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I “55B Locally manufactured or 87.03 assembled motor cars, SUVs and other motor vehicles, excluding auto rickshaws principally designed for the transport of persons (other than those of headings 87.02), including station wagons and racing cars:

(a) of cylinder capacity up 2.5% ad val. to 1000cc

(b) of cylinder capacity 5% ad val. from 1001cc to 2000cc

(l) after S. No. 56 and the entries relating thereto in columns (2),

(3) and (4), the following new serial numbers and corresponding entries relating thereto shall be added, “57 Fruit juices, syrups and Respective Five squashes, waters containing headings percent of added sugar or sweetening retail price. matter etc. excluding mineral and aerated waters 58 Steel Billets, ingots, ship Respective Seventeen plates, bars and other long headings percent ad re-rolled products val.”; and

(m) after Table-I, under the existing Restriction-1-Reduction,after the figure “9” the expression “and 10” shall be inserted; and (B) in Table II, in column (1), against S. No. 3, in column (2), under clause (a),-

(i) against sub-clause (i), in column (4), for the words “Two thousand”, the words “fifteen hundred” shall be substituted; and

(ii) against sub-clause (ii), in column (4), for the words “One thousand two hundred and fifty”, the words “nine hundred” shall be substituted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 221

(11) in the Second Schedule, in the Table, in column (1), after omitted serial number 3 and entries relating thereto, the following new serial number and entries relating thereto shall be added in columns (1), (2) and (3), namely:- “4. Steel Billets, ingots, ship plates, bars and Respective headings”; other long re-rolled products

(12) in the Third Schedule, in Table-II, in column (1), against serial number 2, in column (2),-

(a) the clause (i) shall be omitted; and

(b) in clause (ii), after the word “services”, the expression “, excluding those provided by foreign satellite companies,” shall be inserted; and

(13) after the Third Schedule, the following new Schedule shall be “THE FOURTH SCHEDULE” (Minimum Production) [See sub-section (5A) 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 One metric ton per 110 kwh of long profiles of steel electricity consumed 3. Ship plates and other re-rollable 85% of the weight of the vessel scrap 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

222 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I exceeds actual supplies for the month, the liability to pay duty 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 duty 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 next year, in other cases, the duty 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 FED 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.”. Notwithstanding any other law for the time being in force including the Right of Access to Information Act, 2017 (XXXIV) and sub-section (3) of section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001), except the provisions of clauses (a) and (g) of sub-section (3) of section 216 of the Income Tax Ordinance, 2001(XLIX of 2001), particulars of any person making a declaration under this Act or any information received in any declaration made under this Act shall be confidential.

(1) All development projects shall be prepared in conformity with procedures, processes and templates defined by the Planning Commission.

(2) Cost and benefit analysis and risk assessment of all development project proposals, in excess of a threshold size prescribed by the Planning Commission, shall be undertaken.

15. Amendments of Anti-Dumping Duties Act, 2015 (XIV of 2015)

In the Anti-Dumping Duties Act, 2015 (XIV of 2015), in section 51, in sub-section (1),-

(a) in clause (c), after the semicolon, at the end, the word “or”, shall be added; and

(b) in clause (d), for the expression “; or”, a full stop shall be substituted and thereafter clause (e) shall be omitted.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 223 The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this Act including the manner, procedure, payment of tax and conditions under which the declaration under this Act shall be filed. Development project proposals which exceed in their total cost thresholds defined by the Planning Commission shall be subject to quality assurance. Such quality assurance shall be undertaken by an individual/body which is independent of the sector/Ministry/Division that has initiated the preparation of the development project proposal.

16. Amendments in Finance Act, 2018 (XXX of 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 having C&F Value Rate of levy per set in Pak (US Dollars) Rupees

(1) (2) (3) 1 Up to 30 Nil 2 Above 30 and up to 100 Nil 3 Above 100 and up to 200 400 4 Above 200 and up to 350 1200 5 Above 350 and up to 500 2800 6 Above 500 5600”. The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

(1) All development project proposals shall be subject to a technical approval process. Technical approval shall only be granted to projects which are compliant with the standards and procedures set by the Planning Commission.

(2) Findings and recommendations of the independent quality assurance reports and cost and benefit analysis and risk assessment, where required as per sub-section (2) section 14, shall be taken into account by these forums while considering the development project proposals.

17. Assets Declaration Act, 2019

There is hereby enacted Assets Declaration Act, 2019, in the manner as follows:- AN ACT to provide for voluntary declaration of undisclosed assets, sales and expenditure WHEREAS there is a reportedly large scale non-declaration of assets, sales and expenditure; AND WHEREAS it is expedient to make provisions for declaration of such assets, sales and expenditure for the purposes hereinafter appearing; AND WHEREAS it is expedient to-

(a) allow the non-documented economy’s inclusion in the taxation system; and

(b) serve the purpose of economic revival and growth by encouraging a tax compliant economy; It is hereby enacted as follows:- If any difficulty arises in giving effect to the provisions of this Act, the Federal Government may, by notification in the official Gazette, remove such difficulty as is not inconsistent with the provisions of this Act.

230 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I (1) No development project shall be considered for inclusion in demands for grants that has not been granted technical approval.

(2) No development project shall be considered for inclusion in demands for grants unless it is provided with a budget allocation for the coming year which fully reflects the proposed project cost for each year.

18. Revision of declaration

Any person who, having filed a declaration, hereinafter referred to as the “original declaration”, discovers any omission, mistake, computational error or wrong statement therein, may file revised declaration within the due date specified in section 3, subject to the condition that the value of asset or tax thereon shall be not less than the value of asset and tax thereon, declared in the original declaration. There is hereby enacted the Public Finance Management Act, 2019, in the manner as follows:- AN ACT to strengthen management of public finances with the view to improving definition and implementation of fiscal policy for better macroeconomic management, to clarify institutional responsibilities related to financial management, and to strengthen budgetary management; WHEREAS matters mentioned above are pivotal for reducing public debt and management of public finances; AND WHEREAS as defined under Article 79 of the Constitution of the Islamic Republic of Pakistan, it is expedient to provide for regulating the custody of the Federal Consolidated Fund, the payment of moneys into that Fund, the withdrawal of moneys therefrom, the custody of other moneys received by or on behalf of the Federal Government, their payment into, and withdrawal from, the Public Account of the Federation, and all matters connected with or ancillary thereto; AND WHEREAS to give elaborate mechanism of public finance management as envisaged in Articles 78 to 88, 118 to 127 and 160 to 171 of the Constitution and to guide budgetary management processes, financial and fiscal controls, cash and banking arrangements, and financial oversight of public entities; It is hereby enacted as follows:- CHAPTER I PRELIMINARY (1) Development projects shall be subject to the following forms of monitoring and evaluation, namely:-

(a) monitoring of progress during implementation;

(b) evaluation of the project on completion; and

238 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(c) in case of the projects with a total cost exceeding a threshold to be set by the Planning Commission, an independent impact assessment within five years after completion of the projects.

(2) Timelines, forms and formats and guidance on conducting monitoring and evaluation and reporting shall be as may be prescribed.

19. Repeal

The Assets Declaration Ordinance, 2019 (III of 2019) is hereby repealed from the date of commencement of this Act. THE SCHEDULE [see section 4] Rates of Tax

(1) The rates of tax imposed on undisclosed assets, sales and expenditures shall be as specified in the following Table, namely:- TABLE S. No. Undisclosed assets, sales or expenditure Rate of tax

(1) (2) (3) 1. Domestic immovable properties 1.5% 2. Foreign liquid assets not repatriated 6% 3. Unexplained expenditure 4% 4. Undisclosed Sales 2% 5. All other assets 4% Rates of Default Surcharge

(2) The amount of tax under clause (1) of the Schedule payable after the 30th June, 2019 shall be increased by a default surcharge, by amount as specified in column (3) of the following Table, namely:- TABLE S. No. Time of payment of tax Rate of default surcharge

(1) (2) (3) 1. If the tax is paid after the 30th June, 2019 and on 10% of the tax or before the 30th September, 2019 amount 2. If the tax is paid after the 30th September, 2019 20% of the tax and on or before the 31st December, 2019 amount 3. If the tax is paid after the 31st December, 2019 30% of the tax and on or before the 31st March, 2020 amount 4. If the tax is paid after the 31st March, 2020 and on 40% of the tax or before the 30th June, 2020 amount

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 231

(1) Every Ministry and Division shall include in its demands for grants adequate funds dedicated for operation and maintenance of the physical infrastructure assets under its supervision.

(2) The Planning Commission shall define adequacy requirements for different categories of physical infrastructure expressed as the ratio of the annual provision for maintenance and the current market value of the asset.

20. Utilization of public assets

(1) Principal accounting officers shall ensure that the maximum possible returns are achieved on each and every asset falling under the oversight of the Ministry and Division.

(2) The returns on a public asset may include utilization of the asset for delivery of one or more public services or a financial return accruing to the Government from utilization of the potential of the asset.

(3) With a view to achieving the maximization of returns on public assets, government may establish sovereign wealth funds through an Act of Parliament. The objective of a sovereign wealth fund is to act as a holding institution for public assets, which is capable of bringing to bear sound management and exploitation of opportunities for the maximization of returns from the public assets. CHAPTER IV CONTROL OF PUBLIC FINANCE CONSOLIDATED FUND AND PUBLIC ACCOUNT

21. Federal Consolidated Fund

(1) All Ministries and Divisions, their attached departments and subordinate offices and all public entities if so required by their statutes, shall arrange remittance in the Federal Consolidated Fund, without delay, of all revenues including all grants received by the Federal Government, all loans raised by the Government and all moneys received by it in repayment of any loan and all other moneys into the Public Account of the Federation as required under Article 78 of the Constitution.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 239

(2) All loans or grants made to the Federal Government by a foreign government or otherwise shall be remitted to the Federal Consolidated Fund and the Controller General of Accounts shall be responsible for its proper accounting.

22. Custody of the Federal Consolidated Fund and Public Account of the Federation

The operation of the Federal Consolidated Fund and the Public Account of the Federation shall vest in the Finance Division under the overall supervision of the Federal Government.

23. Expenditure from Federal Consolidated Fund

(1) No authority shall incur or commit any expenditure or enter into any liability involving expenditure from the Federal Consolidated Fund and Public Account of the Federation until the same has been sanctioned by a competent authority duly empowered and the expenditure has been provided for the financial year through-

(a) schedule of authorized expenditure; or

(b) supplementary grant and technical supplementary grant as per Article 84 of the Constitution; or

(2) No authority shall transfer public moneys for investment or deposit from government account to other bank account without prior approval from the Federal Government.

(3) Every grant approved by the National Assembly for a financial year and every other authority or sanction issued under this Act in respect of a financial year, shall lapse and cease to have any effect at the close of that financial year.

24. Withholding of authorized appropriations

The Finance Division may, with the prior approval of the National Assembly, suspend, withdraw, limit or place conditions on any budget appropriation or other authority issued by it if the Finance Division is satisfied that such action is required by reason of a financial exigency or is in the public interest.

25. Excess expenditure

(1) The expenditure in excess of the amount of budget grant as well as the expenditure not falling within the scope or intention of any budget grant, unless regularized by a supplementary grant, shall be treated as excess expenditure.

240 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(2) Excess expenditure shall not become a charge against the Federal Consolidated Fund except when-

(a) The National Assembly approves an additional amount equivalent to overspending as a direct charge against the Federal Consolidated Fund as voted or charged expenditure; or

(b) it decides-

(i) to recover the excess expenditure from the public servants who are found to be involved to incur such an expenditure. In this case, the Finance Division may take appropriate measures; or

(ii) to take disciplinary proceedings against the principal accounting officer.

(3) If the Public Accounts Committee recommends the excess expenditure to stand as a charge to Federal Consolidated Fund, then it shall be included in the statement of excess expenditure required under Article 84 of the Constitution.

26. Commitment control system

The Finance Division in consultation with the Auditor General shall approve and issue guidelines related to annual and multi-annual commitment control systems.

27. Delegation of financial powers

The Finance Division shall approve regulations for the delegation of financial powers based on the following principles, namely:-

(a) financial powers accorded to the principal accounting officers balance financial authority with responsibility for financial propriety as per the applicable financial rules and regulations;

(b) financial powers are accorded with the view to enhance public service delivery; and

(c) allowing the principal accounting officers to delegate financial powers to sub-ordinate officials. The delegation shall not diminish the responsibility and accountability of the principal accounting officers.

28. Chief finance and accounts officer

To assist principal accounting officers in financial management, there shall be chief finance and

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 241 accounts officer positioned in Ministries and Divisions and financial advisers’ organization shall stand disbanded.

29. Chief internal auditor

Within a period not exceeding twelve months from the date of commencement of this Act, the position of chief internal auditor shall be created who shall work under direct supervision of principal accounting officer. Appointment, roles and responsibilities of chief internal auditors shall be as may be prescribed under the Civil Servant Act, 1973 (LXXI of 1973) and in consultation with the Auditor-General. CHAPTER V TREASURY MANAGEMENT

30. Cash management

(1) The Finance Division, with the approval of the Federal Government, shall notify policy and rules under this Act to prescribe an effective cash management system for all public entities and special purpose funds leading to treasury single account. Fundamental principles and objectives of such policy and rules shall be-

(a) to anticipate cash needs of Government;

(b) to ensure availability of cash when it is required;

(d) to neutralize impact of the Government’s cash flows on the domestic banking sector.

(2) The policy and rules under this section, inter alia, shall provide for-

(a) establishing institutional and administrative arrangements needed to manage an effective cash management system;

(b) availability of funds in accordance with schedule of authorized expenditure or supplementary grant;

(c) availability of foreign exchange, where required, from within the allocation of foreign exchange sanctioned for the Ministry and Division concerned;

(d) placement of all public moneys into the treasury single account;

242 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(e) quarterly revenue, expenditure, cash requirement and debt plan within sanctioned budget;

(f) gradual expansion of budgetary and accounting framework to all autonomous entities, declared as such under clause (b) of sub- section(1) of section 35;

(g) usage of idle cash of the autonomous entities, declared as such under clause (b) of sub-section (1) of section 35; and

(h) require all principal accounting officers to provide the information deemed necessary for effective operation of the cash management and treasury single account system.

31. Government banking arrangements

(1) The Federal Government shall maintain its Federal Consolidated Fund Account in the State Bank of Pakistan and it may open its such other bank accounts as may be required by the Finance Division, from time to time, in accordance with the State Bank of Pakistan Act, 1956 (XXXIII of 1956).

(2) These accounts shall be operated by such authorized signatories as may be prescribed by the Finance Division.

(3) For the purpose of effective financial management and taking corrective measures to ensure financial discipline, all banks in Pakistan shall provide such information of all accounts maintained by Ministries and Divisions, attached departments and subordinate offices and public entities as shall be required by the Finance Division, from time to time, through State Bank of Pakistan. CHAPTER VI SPECIAL PURPOSE FUNDS

32. Special purpose funds

(1) If monies have been appropriated by the National Assembly to establish a fund, the Finance Division shall notify rules or regulations and issue directives for the management and control of such a fund. Any statutory instrument shall-

(a) state the purposes for which the special fund has been established;

(b) identify the principal accounting officer responsible for its operations; and

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 243

(2) Such funds shall be subject to audit by the Auditor-General of Pakistan.

(3) Where the Federal Government is satisfied that either-

(a) the purposes for which any special fund was established have been fully served; or

(b) it is in the public interest to wind up a special fund, it shall notify dissolution of the said special fund and any credit balances in such fund shall be transferred to the Federal Consolidated Fund. An evaluation report and regulation of such funds shall be notified by the Finance Division. CHAPTER VII ACCOUNTING AND REPORTING

33. Controller General of Accounts

The Controller General of Accounts shall perform his functions in accordance with the provisions of the Controller General of Accounts (Appointment, Functions and Powers) Ordinance, 2001 (XXIV of 2001).

34. Mid-year reporting of budget developments

(1) By twenty- eighth February each year, the Federal Government shall place mid-year review report before the National Assembly. The report shall provide budget and actual comparison of revenues, expenditure and financing.

(2) After placing the mid-year review report in the National Assembly, the Finance Division shall publish the report on its official website.

35. Year-end government performance monitoring report

Starting from the financial year 2021-22, the Federal Government shall place, within six months of close of financial year, before National Assembly, a government performance monitoring report detailing-

(a) budget and expenditure by outputs; and

(b) planned and delivered key performance targets.

244 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I CHAPTER VIII PUBLIC ENTITIES

36. Public entities

(1) Where-

(a) any board, commission, company, corporation, trust or other fund or account is established by or under any law which is fully or substantially funded either from the Federal Consolidated Fund or by way of taxes, levies, duties or other public monies accruing to it in terms of any laws; or

(b) any entity other than a state enterprise is established by or under any law, the activities of which may result in a financial commitment or other liability being incurred by the Government, the Federal Government may declare such entity to be a public entity for the purposes of this Act.

(2) The Federal Government shall, by notification in the official Gazette, classify public entities as-

(a) Government’s business enterprises, including public limited companies or registered companies under the law regulating companies or banking; or

(b) autonomous entities, which include all public entities that are not Government’s business enterprises, which have been established to provide regulatory, research, development and training or are producing goods or services on non-commercial basis.

(3) The Finance Division shall be responsible for notifying the policy framework and guidelines for financial management of Government’s business enterprises and autonomous entities, including those related to internal controls, borrowing, cash management, accounting, reporting and external audit.

37. Self-generated revenues

(1) Revenues collected by an autonomous entity, which arise from any Act or statutory instruments of the Federal Government shall be deposited into the treasury single account.

(2) The Finance Division shall, with approval of the Federal Government, notify policy and guidelines and may issue regulations on the utilization of revenues generated by autonomous entities.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 245

38. Preparation of accounts

(1) Accounts of Government’s business enterprises shall be prepared in accordance with the provisions of the relevant law. Copy of the audited financial statements shall be made available to the Finance Division within three months of their certification.

(2) The accounts of autonomous entities shall be prepared in accordance with instructions issued by the Controller General of Accounts with approval of the Auditor General. Copy of annual accounts shall be made available to the Finance Division within three months of their finalization.

(3) Audited financial statements and annual accounts referred to in sub-section (1) and sub-section (2) shall be laid before Parliament by President of Pakistan along with other accounts of Federal Government not later than one month after the same are submitted by Auditor-General, except that, if Parliament is not in session, then the accounts shall be laid before it on the first day of the following session.

(4) Any reports laid before Parliament under sub-section (3) shall be referred to the Public Accounts Committee of Parliament.

39. Audit

(1) The audit of all public business enterprises shall be in accordance with the provisions of the relevant law.

(2) The audit of autonomous entities classified shall be in accordance with instructions issued by the Auditor-General.

40. Dissolution of public entity

Where the public entity established under any law or legal instrument stands dissolved or has been wound up, any monies or other resources standing to the credit of the public entity at the time of dissolution or winding up shall be paid into the Federal Consolidated Fund. CHAPTER IX REMOVAL OF DIFFICULTY AND POWER TO MAKE RULES

41. Removal of difficulty

If any difficulty arises in giving effect to the provisions of this Act, Government may make such order, not inconsistent with the provisions of this Act, as it may consider necessary for removal of such difficulty.

42. Power to make rules

(1) The Federal Government may, by notification in the official Gazette, make rules for carrying out the purposes of this Act.

(2) All existing instruments shall continue in force until altered, amended or repealed by such authority competent to alter, amend or repeal the same.

246 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(3) The existing instruments shall include-

(a) The General Financial Rules;

(b) Federal Treasury Rules;

(d) Civil Service Regulations;

(e) Provident Fund Rules;

(f) Civil Pension Rules;

(g) Methods and procedures prescribed by the Auditor-General of Pakistan with reference to deposit and withdrawal of public money;

(h) Public Works Department Code;

(i) the New System of Financial Control and Budgeting, 2018;

(j) the Central Public Works Account Code;

(k) the Accounting Policies and Procedures Manual;

(l) other Financial Regulations consistent with the above rules; and

(m) all amendments, schedules, manuals, notifications, forms, appendixes, orders, circulars, codes, instructions, directives, guidelines, clarifications and any other supplementary legal instruments relating to any of those rules, in each case as in force in the Federal Government before commencement of this Act.

(4) All the existing public finance management and administration including the rules, regulations and all amendments, schedules, manuals, notifications, forms, appendixes, orders, circulars, codes, instructions, directives, guidelines, clarifications and any other supplementary legal instruments relating to any of those rules, in each case as in force in the Federal Government before commencement of this Act shall be made consistent with this Act through appropriate amendments where required.

43. Budget manual

Within a period of six months from commencement of this Act, the Finance Division shall approve a budget manual, to be published as well as placed on the Federal Government’s website.

44. Implementation and improvement

The Federal Government shall constitute a committee to oversee implementation of this Act and its secondary legislation. The committee shall also enlist global best practices of the public finance management and shall recommend improvements in this Act and its secondary legislation from time to time.

45. Overriding effect

This Act shall have overriding effect over all other laws and any law inconsistent with this Act in contradiction with this Act shall be amended to the extent of the inconsistency.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 247 THE FIRST SCHEDULE AMENDMENTS IN FIRST SCHEDULE TO THE CUSTOMS ACT 1969 (IV OF 1969) (PAKISTAN CUSTOMS TARIFF)

248 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

THE FIRST SCHEDULE [see section 6(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%” specified below shall be substituted, namely :-

2507.0000 Kaolin and other kaolinic clays,whether or not calcined. 0 2512.0000 Siliceous fossil meals (for example, kieselguhr, tripolite and diatomite) and similar siliceous 0 earths, whether or not calcined, of an apparent specific gravity of 1 or less. 2514.0000 Slate, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or 0 slabs of a rectangular (including square) shape. 2521.0000 Limestone flux; limestone and other calcareous stone, of a kind used for the manufacture of 0 lime or cement. 2602.0000 Manganese ores and concentrates, including ferruginous manganese ores and concentrates 0 with a manganese content of 20 % or more, calculated on the dry weight.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 249

2620.2100 - - Leaded gasoline sludges and leaded anti-knock compound sludges 0 2620.6000 - Containing arsenic, mercury, thallium or their mixtures, of a kind used for the extraction of 0 arsenic or those metals or for the manufacture of their chemical compounds. 2620.9100 - - Containing antimony, beryllium, cadmium, chromium or their mixtures. 0 2711.1400 - - Ethylene, propylene, butylene and butadiene 0 2805.3000 - Rare- earth metals, scandium and yttrium whether or not intermixed or interalloyed 0

250 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

2818.1000 - Artificial corundum whether or not chemically defined 0 2818.2000 - Aluminium oxide, other than artificial corundum 0 2822.0000 Cobalt oxides and hydroxides; commercial cobalt oxides. 0 2825.1000 - Hydrazine and hydroxylamine and their inorganic salts 0 2826.3000 - Sodium hexafluoroaluminate (synthetic cryolite) 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 251

2835.1000 - Phosphinates (hypophosphites) and phosphonates (phosphites) 0 2835.2500 - - Calcium hydrogenorthophosphate (“dicalcium phosphate”) 0 2835.3100 - - Sodium triphosphate (sodium tripolyphosphate) 0 2842.1000 - Double or complex silicates, including aluminosilicates whether or not chemically defined 0 2842.9010 - - - Fulminates, cyanates and thiocyanates 0

252 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

2850.0000 Hydrides, nitrides, azides, silicides and borides, whether or not chemically defined, other than 0 compounds which are also carbides of heading 28.49. 2903.1500 - - Ethylene dichloride (ISO) (1,2-dichloroethane) 0 2903.1910 - - - 1,1,1-Trichloroethane (methyl chloroform) 0 2903.2300 - - Tetrachloroethylene (perchloroethylene) 0 2903.3100 - - Ethylene dibromide (ISO) (1,2-dibromoethane) 0 2903.3950 - - - 1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-prop-1-ene 0 2903.7600 - - Bromochlorodifluoromethane, bromotrifluoromethane and dibromotetrafluoroethanes 0 2903.7710 - - - Pentachlorofluoroethane; Pentachlorotrifluoropropanes; Pentachlorofluromethane 0 2903.7720 - - - Chloroheptafluoropropanes; Chloropentafluoroethane 0 2903.7730 - - - Tetrachlorodifluoroethanes; Tetrachlorotetrafluoropropanes 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 253

2903.8100 - - 1,2,3,4,5,6-Hexachlorocyclohexane (HCH (ISO)), including lindane (ISO, INN) 0 2903.8200 - - Aldrin (ISO), chlordane (ISO) and heptachlor (ISO). 0 2904.3500 - - Other salts of Perfluorooctane sulphonic acid 0 2905.1600 - - Octanol (octyl alcohol) and isomers thereof 0 2905.1920 - - - 3,3-dimethylbutan-2-ol (pinacolyl alcohol) 0 2905.4100 - - 2-Ethyl-2-(hydroxymethyl)propane-1, 3-dio (trimethylolpropane) 0

254 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

2906.1200 - - Cyclohexanol, methylcyclohexanols and dimethylcyclo-hexanols 0 2907.1300 - - Octylphenol, nonylphenol and their isomers; salts thereof 0 2907.2300 - - 4,4’-Isopropylidienediphenol (bisphenol A,diphenylolpropane)and its salts 0 2908.1910 - - - 4-chloro, 3-methyl phenol, and chlorohyroquinone 0 2908.9200 - - 4,6-Dinitro-o-cresol (DNOC (ISO) and its salts 0 2909.2000 - Cyclanic, cyclenic or cycloterpenic ethers and their halogenated, sulphonated, nitrated or 0 nitrosated derivatives 2909.3000 - Aromatic ethers and their halogenated, sulphonated, nitrated or nitrosated derivatives 0 2909.4100 - - 2,2’- Oxydiethanol (diethylene glycol, digol) 0 2909.4300 - - Monobutyl ethers of ethylene glycol or of diethylene glycol 0 2909.4410 - - - Monomethyl ethers of ethylene glycol or of diethylene glycol 0 2909.5000 - Ether- phenols, ether- alcohol- phenols and their halogenated, sulphonated, nitrated or 0 nitrosated derivatives 2909.6000 - Alcohol peroxides, ether peroxides, ketone peroxides and their halogenated, sulphonated, 0 nitrated or nitrosated derivatives 2910.3000 - 1- Chloro- 2,3- epoxypropane (epichlorohydrin) 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 255

2912.4100 - - Vanillin (4-hydroxy-3-methoxybenzaldehyde) 0 2912.4200 - - Ethylvanillin (e-ethoxy-4-hydroxybenzaldehyde) 0 2913.0000 Halogenated, sulphonated, nitrated or nitrosated derivatives of products of heading 29.12. 0 2914.1300 - - 4-Methylpentan-2-one (methyl isobutyl ketone) 0 2914.5000 - Ketone- phenols and ketones with other oxygen function 0 2916.1910 - - - Maleic acid, AZDN (2-AZOBIS) Isobutyronitrile 99% Min) 0 2916.2000 - Cyclanic, cyclenic or cycloterpenic monocarboxylic acids, their anhydrides, halides, 0 peroxides, peroxyacids and their derivatives 2916.3200 - - Benzoyl peroxide and benzoyl chloride 0

256 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

2917.1300 - - Azelaic acid, sebacic acid, their salts and esters 0 2918.1700 - - 2,2-Diphenyl-2-hydroxyacetic acid (benzilic acid) 0 2918.2300 - - Other esters of salicyclic acid and their salts 0 2918.3000 - Carboxylic acids with aldehyde or ketone function but without other oxygen function, their 0 anhydrides, halides, peroxides, peroxyacids and their derivatives 2918.9100 - - 2,4,5-T (ISO) (2,4,5-trichlorophenoxyacetic acid), its salts and esters 0 2920.1100 - - Parathion (ISO) and parathion-methyl (ISO) (methyl- parathion) 0 2921.1100 - - Methylamine, di- or trimethylamine and their salts 0 2921.1200 - - 2-(N,N-Dimethylamino)ethylchloride hydrochloride 0 2921.1300 - - 2-(N,N-Diethylamino)ethylchloride hydrochloride 0 2921.1400 - - 2-(N,N-Diisopropylamino)ethylchloride hydrochloride 0 2921.1930 - - - Chlormethine (INN) (bis(2-chloroethyl) methylamine) 0 2921.1940 - - - Trichlomethine (INN) (tris(2-chloroethyl)amine) 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 257

2921.1950 - - - N,N-Dialkyl(methyl, ethyl, n-propyl or isopropyl)2-chloroethylamines and their protonated 0 salts 2921.3000 - Cyclanic, cyclenic or cycloterpenic mono- or polyamines, and their derivatives; salts thereof 0 2921.4400 - - Diphenylamine and its derivatives; salts thereof 0 2921.4600 - - Amfetamine (INN), benzfetamine (INN), dexamfetamine (INN), etilamfetamine (INN), 0 phentermine (INN); salts thereof 2922.1600 - - Diethanolammonium perfluorooctane sulphonate 0 2922.1700 - - Methyldiethanolamine and ethyldiethanolamine 0 2922.1911 - - - - N,N-Dimethyl-2-aminoethanol and its protonated salts 0 2922.1912 - - - - N,N-Diethyl-2-aminoethanol and its protonated salts 0 2922.2100 - - Aminohydroxynaphthalenesulphonic acids and their salts 0 2922.3100 - - Amfepramone (INN), methadone (INN) and normethadone (INN); salts thereof 0 2922.5000 - Amino- alcohol- phenols, amino- acid- phenols and other amino- compounds with oxygen 0 function 2924.1200 - - Fluoroacetamide (ISO), monocrotophos (ISO) and phosphamidon (ISO) 0 2924.1920 - - - Acrylamido methyl propane sulphonic acid (AMPS) 0

258 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

2924.2100 - - Ureines and their derivatives; salts thereof 0 2924.2300 - - 2- Acetamidobenzoic acid (N- acetylanthranilic acid) and its salts 0 2926.3000 - Fenproporex (INN) and its salts; methadone (INN) intermediate (4- cyano- 0 2- dimethylamino- 4,4- diphenylbutane) 2926.9010 - - - Alpha cyano, 3-phenoxybenzyl (-)cis, trans 3-(2,2-diclord vinyl) 2,2 dimethyl cyclopropane 0 carboxylate 2926.9020 - - - (S) Alpha cyano, 3-phenoxybenzyl (S)-2-(4, chloro phenyl)-3 mehtyl butyrate 0 2926.9030 - - - Cyano, 3-phenony benzyl 2,2,3,3 tetra methyl cyclopropane carboxalate 0 2927.0030 - - - Azoxybenzene, azoxybenzoic acid and azoxytoluidine 0 2930.2010 - - - 2-N, N-Dimethyl amino-I sodium thiosulphate, 3-thiosulfourropane 0 2930.2020 - - - S-S (2 dimethyl amino (trimethylene) bis (thio carbamate) 0 2930.7000 - Bis(2-hydroxyethyl)sulfide (thiodiglycol (INN)) 0 2930.8000 - Aldicarb (ISO), captafol (ISO) and methamidophos (ISO) 0 2930.9010 - - - 2- N,N-dimethylamino 1,3 disodium thiosulphate propane 0 2930.9030 - - - Diafethiuran technical (itertbutyl) 3-2-6 disopropyl (4-phenoxyphenyl) thiourene 0 2930.9040 - - - O-O diethyl O-(3,5,6 trichloro pyridinyl) phosphorothioate 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 259

2930.9050 - - - O-(4-bromo, 2-chloro phenyl) o-ethyl s-propyl (phosphorothioate) 0 2930.9060 - - - O,O diethyl O-(3,5,6-trichloro 2-pyridyl) phosphorothioate 0 2930.9091 - - - - [S-2-(dialkyl(methyl,ethyl,n-propyl or isopropyl)amino)ethyl ]hydrogen alkyl (methyl,ethyl, 0 n-propyl or isopropyl)phosphonothioates and their O-alkyl (<C10, including cycloalkyl)esters, alkylated or protonated salts therof 2930.9092 - - - - 2-Chloroethylchloromethylsulphide; Bis(2-chloroethyl)sulphide; Bis 0 (2-chloroethylthiomethyl)ether; Bis(2-chloroethylthioethyl)ether 2930.9093 - - - - O,O-Diethyl S-[2-(diethylamino) ethyl]phosphorothioate and its alkylated or protonated 0 ethylphosphonothiolothionate (fonofos) 2930.9094 - - - - Containing a phosphorus atom to which is bonded one methyl, ethyl, n-propyl or 0 isopropyl group but not further carbon atoms 2931.3400 - - Sodium 3-(trihydroxysilyl)propyl methylphosphonate 0 2931.3500 - - 2,4,6-Tripropyl-1,3,5,2,4,6-trioxatriphosphinane 2,4,6-trioxide 0 2931.3600 - - (5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl methyl methylphosphonate 0 2931.3700 - - Bis[(5-ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] methylphosphonate 0 2931.3800 - - Salt of methylphosphonic acid and (aminoiminomethyl)urea (1 : 1) 0 2931.3910 - - - O-Alkyl ( < C10, including cycloalkyl) alkyl (methyl, ethyl, n-propyl or 0 isopropyl)phosphonofluoridates 2931.3930 - - - Alkyl (methyl, ethyl, n-propyl or isopropyl) phosphonyl difluorides 0 2931.3940 - - - [O-2-(dialkyl (methyl, ethyl, n-propyl or isopropyl) amino)ethyl] hydrogen alkyl(methyl, 0 ethyl, n-propyl or isopropyl)phosphonites and their O-alkyl ( <C10, including cycloalkyl) esters; alkylated or protonated salts thereof 2931.3950 - - - O-Isopropyl methylphosphonochloridate 0 2931.3960 - - - O-Pinacolyl methylphosphonochloridate 0 2931.3991 - - - - Containing a phosphorus atom to which is bonded one methyl, ethyl, n-propyl or 0 isopropyl group but not further carbon atoms 2932.1300 - - Furfuryl alcohol and tetrahydrofurfuryl alcohol 0

260 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

2932.9910 - - - 2,3 Dihydro 2-2 dimethyl-7 benzo furanyl methyl-carbamate 0 2933.1100 - - Phenazone (antipyrin) and its derivatives 0 2933.3300 - - Alfentanil (INN), anileridine (INN), bezitramide (INN), bromazepam (INN), difenoxin (INN), 0 diphenoxylate (INN), dipipanone (INN), fentanyl (INN), ketobemidone (INN), methylphenidate (INN), pentazocine (INN), pethidine (INN), pethidine (INN) intermediate A, phencyclidine (INN) (PCP), phenoperidine (INN), pipradrol (INN), piritramide (INN), propiram (INN) and trimeperidine (INN); salts thereof 2933.5200 - - Malonylurea (barbituric acid) and its salts 0 2933.5300 - - Allobarbital (INN), amobarbital (INN), barbital INN), butalbital (INN), butobarbital, 0 cyclobarbital (INN), methylphenobarbital (INN), pentobarbital (INN), phenobarbital (INN), secbutabarbital (INN), secobarbital (INN) and vinylbital (INN); salts thereof 2933.5400 - - Other derivatives of malonylurea (barbituric acid); salts thereof 0 2933.5500 - - Loprazolam (INN), mecloqualone (INN), methaqualone (INN) and zipeprol (INN); salts 0 thereof 2933.5910 - - - 0, Diethyl, 0 (2, iso propyl-6 methyl-pyrimidin-4-YL) phosphoro thioate 0 2933.5920 - - - 1-tert, butyl-3 (2,6 iso propyl 4-phenoxy phenyal thiourean 0 2934.2000 - Compounds containing in the structure a benzothiazole ring- system (whether or not 0 hydrogenated), not further fused 2934.3000 - Compounds containing in the structure a phenothiazine ring- system (whether or not 0 hydrogenated), not further fused

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2934.9100 - - Aminorex (INN), brotizolam (INN), clotiazepam (INN), cloxazolam (INN), dextromoramide 0 (INN), haloxazolam (INN), ketazolam (INN), mesocarb (INN), oxazolam (INN), pemoline (INN), phendimetrazine (INN), phenmetrazine (INN) and sufentanil (INN); salts thereof 2936.2400 - - D- or DL-Pantothenic acid (Vitamin B3 or Vitamin B5) and its derivatives 0 2937.1100 - - Somatotropin, its derivatives and structural analogues 0 2937.2100 - - Cortisone, hydrocortisone, prednisone (dehydrocortisone) and prednisolone 0 (dehydrohydrocortisone) 2937.2200 - - Halogenated derivatives of corticosteroidal hormones 0 2937.5000 - Prostaglandins, thromboxanes and leukotrienes, their derivatives and structural analogues 0 2939.1100 - - Concentrates of poppy straw; buprenorphine (INN), codeine, dihydrocodeine (INN), 0 ethylmorphine, etorphine (INN), heroin, hydrocodone (INN), hydromorphone (INN), morphine, nicomorphine (INN), oxycodone (INN), oxymorphone (INN), pholcodine (INN), thebacon (INN) and thebaine; salts thereof 2939.7100 - - Cocaine, ecgonine, levometamfetamine, metamfetamine (INN), metamfetamine racemate; 0 salts, esters and other derivatives thereof 2941.2000 - Streptomycins and their derivatives; salts thereof 0 3001.2000 - Extracts of glands or other organs or of their secretion 0

262 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

3006.6000 - Chemical contraceptive preparations based on hormones, on other products of heading 0 29.37 or on spermicides 3102.3000 - Ammonium nitrate, whether or not in aqueous solution 0 3102.4000 - Mixtures of ammonium nitrate with calcium carbonate or other inorganic non- fertilising 0 substances 3102.6000 - Double salts and mixtures of calcium nitrate and ammonium nitrate 0 3102.8000 - Mixtures of urea and ammonium nitrate in aqueous or ammoniacal solution 0 3102.9000 - Other, including mixtures not specified in the foregoing subheadings 0 3103.1100 - - Containing by weight 35 % or more of diphosphorus pentaoxide (P2O5) 0 3105.1000 - Goods of this Chapter in tablets or similar forms or in packages of a gross weight not 0 exceeding 10 kg 3105.2000 - Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus 0 and potassium 3105.3000 - Diammonium hydrogenorthophosphate (diammonium phosphate) 0 3105.4000 - Ammoniumdihydrogen orthophosphate (monoammonium phosphate) and mixtures thereof 0 with diammonium hydrogenorthophosphate (diammonium phosphate) 3105.6000 - Mineral or chemical fertilisers containing the two fertilising elements phosphorus and 0 potassium 3206.1100 - - Containing 80 % or more by weight of titanium dioxide calculated on the dry matter 0 3302.1010 - - - Flavours for use in aerated beverages 11 3404.2000 - Of poly (oxyethylene) (polyethylene glycol) 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 263

3504.0000 Peptones and their derivatives; other protein substances and their derivatives, not elsewhere 0 specified or included; hide powder, whether or not chromed. 3506.9910 - - - Sealant having methyl ethyl ketone from 60 % to 70 % and ethyl acetate from 10 % to 20 0 %. 3702.4100 - - Of a width exceeding 610 mm and of a length exceeding 200 m, for colour photography 0 (polychrome) 3702.4200 - - Of a width exceeding 610 mm and of a length exceeding 200m, other than for colour 0 photography 3702.4300 - - Of a width exceeding 610 mm and of a length not exceeding 200 m 0 3702.4400 - - Of a width exceeding 105 mm but not exceeding 610 mm 0 3702.5300 - - Of a width exceeding 16 mm but not exceeding 35 mm and of a length not exceeding 30 0 m, for slides 3702.5400 - - Of a width exceeding 16 mm but not exceeding 35 mm and of a length not exceeding 30 0 m, other than for slides 3702.5500 - - Of a width exceeding16 mm but not exceeding 35 mm and of a length exceeding 30 m 0 3702.9600 - - Of a width not exceeding 35 mm and of a length not exceeding 30 mm 0 3702.9700 - - Of a width not exceeding 35 mm and of a length exceeding 30 mm 0 3703.2000 - Other for colour photography (polychrome) 0 3704.0000 Photographic plates, film, paper, paperboard and textiles, exposed but not developed. 0 3705.0000 Photographic plates and film, exposed and developed, other than cinematographic film. 0 3801.3000 - Carbonaceous pastes for electrodes and similar pastes for furnace linings 0 3804.0000 Residual lyes from the manufacture of wood pulp, whether or not concentrated, desugared or 0 chemically treated, including lignin sulphonates, but excluding tall oil of heading 38.03. 3808.9170 - - - Products registered under the Agricultural Pesticides Ordinance 1971 0 3808.9310 - - - Products registered under the Agricultural Pesticides Ordinance 1971 0 3810.1000 - Pickling preparations for metal surfaces; soldering brazing or welding powders and pastes 3 consisting of metal and other materials 3815.1100 - - With nickel or nickel compounds as the active substance 0

264 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

3815.1200 - - With precious metal or precious metal compounds as the active substance 0 3817.0000 Mixed alkylbenzenes and mixed alkylnaphthalenes, other than those of heading 27. 07 or 29. 0 02. 3821.0000 Prepared culture media for the development or maintenance of micro- organisms (including 0 viruses and the like) or of plant, human or animal cells 3824.9970 - - - Dialysis bath concentrate in liquid or powder form 0 3824.9991 - - - -Preparations of a kind used for water purification 0 3824.9992 - - - -Carburizing preparations of a kind used for hardening of steel 0 3903.3000 - Acrylonitrile- butadiene- styrene (ABS) copolymers 0 3908.1000 - Polyamide- 6, - 11, - 12, - 6, 6, - 6, 9, - 6, 10 or - 6, 12 0 3914.0020 - - - Ion-exchangers of the polymerization type 0 3926.9020 - - - Coils of plastics (contraceptives and accessories therefor) 0 3926.9070 - - - Design patterns, cards for textile and leather garments 0 3926.9091 - - - -Plastic tags and staples for garments 0 4001.1000 - Natural rubber latex, whether or not pre- vulcanised 0 4001.2200 - - Technically specified natural rubber (TSNR) 0 4001.3000 - Balata, gutta- percha, guayule, chicle and similar natural gums 0 4002.3100 - - Isobutene-isoprene (butyl) rubber (IIR) 0 4002.7000 - Ethylenepropylene non- conjugated diene rubber (EPDM) 0 4002.8000 - Mixtures of any product of heading 40.01 with any product of this heading 0 4003.0000 Reclaimed rubber in primary forms or in plates, sheets or strip. 0

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4016.9330 - - - Special rubber seals for barrage gates with minimum tensile strength of 210 kg/ sq.cm 0 and shore hardness duromter (type A) 60 to 70 with floro carbon coating 4101.2000 - Whole hides and skins,unsplit, of a weight per skin not exceeding 8 kg when simply dried, 0 10 kg when dry- salted, or 16 kg when fresh, wet- salted or otherwise preserved 4101.9000 - Other, including butts, bends and bellies 0 4112.0000 Leather further prepared after tanning or crusting, including parchment- dressed leather, of 0 sheep or lamb, without wool on, whether or not split, other than leather of heading 41.14. 4114.1000 - Chamois (including combination chamois) leather 0 4114.2000 - Patent leather and patent laminated leather; metallised leather 0 4115.1000 - Composition leather with a basis of leather or leather fibre, in slabs, sheets or strip, whether 0 or not in rolls

266 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

4401.4000 - Sawdust and wood waste and scrap, not agglomerated 0 4403.2100 - - Of pine (Pinus spp.), of which any cross-sectional dimension is15 cm or more 0 4403.2300 - - Of fir (Abies spp.) and spruce (Picea spp.), of which any cross-sectional dimension is 0 15 cm or more 4403.2400 - - Of fir (Abies spp.) and spruce (Picea spp.), other 0 4403.2500 - - Other, of which any cross-sectional dimension is 15 cm or more 0 4403.4100 - - Dark Red Meranti, Light Red Meranti and Meranti Bakau 0 4403.4910 - - - Sawlogs and veneer logs of non-coniferous species 0 4403.9300 - - Of beech (Fagus spp.), of which any cross-sectional dimension is 15 cm or more 0 4403.9500 - - Of birch (Betula spp.), of which any cross-sectional dimension is 15 cm or more 0 4407.1200 - - Of fir (Abies spp.) and spruce (Picea spp.) 0 4407.2500 - - Dark Red Meranti, Light Red Meranti and Meranti Bakau 0 4407.2600 - - White Lauan, White Meranti, White Seraya, Yellow Meranti and Alan 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 267

4408.3100 - - Dark Red Meranti, Light Red Meranti and Meranti Bakau 3 4411.9310 - - - Not mechanically worked or surface covered 16 4411.9400 - - Of a density not exceeding 0.5 g/cm2 16 4413.0000 Densified wood, in blocks, plates, strips or profile shapes. 0 4502.0000 Natural cork, debacked or roughly squared, or in rectangular (including square) blocks, 0 plates, sheets or strip (including sharp- edged blanks for corks or stoppers). 4705.0000 Wood pulp obtained by a combination of mechanical and chemical pulping processes. 0 4706.2000 - Pulps of fibres derived from recovered (waste and scrap) paper or paperboard 0 4706.9300 - - Obtained by a combination of mechanical and chemical processes 0 4802.2000 - Paper and paperboard of a kind used as a base for photo- sensitive, heat- sensitive or 0 electro- sensitive paper or paperboard 4802.5600 - - Weighing 40 g/ m² or more but not more than 150 g/ m², in sheets with one side not 20 exceeding 435 mm and the other side not exceeding 297mm in the unfolded state 4805.9110 - - - Having di-electric strength not less than .5 Kv per milimeter 0 4805.9210 - - - Having di-electric strength not less than .5 Kv per milimeter 0 4805.9310 - - - Having di-electric strength not less than .5 Kv per milimeter 0 4811.5920 - - - Volatile corrosive inhobitor (VCI) paper 0

268 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

4823.9020 - - - Patterns, design cards for textile and leather garments 0 5201.0040 - - - Length exceeding 20.5 mm but not exceeding 24.5 mm 0 5201.0050 - - - Length exceeding 24.5 mm but not exceeding 28.5 mm 0 5201.0060 - - - Length exceeding 28.5 mm but not exceeding 31 mm 0 5201.0070 - - - Length exceeding 31 mm but not exceeding 34.5 mm 0 5305.0010 - - - Sisal and other textile fibres of the genus Agave, raw 0 5402.4410 - - - Elastomeric yarn mainly composed of polyurethane (like spandex and lycra excluding 0 other poly-urethane yarn). 5603.1200 - - Weighing more than 25 g/m2 but not more than 70 g/m2 11 5603.1300 - - Weighing more than 70 g/m2 but not more than 150 g/m2 11 5603.9200 - - Weighing more than 25 g/m2 but not more than 70 g/m2 11 5603.9300 - - Weighing more than 70 g/m2 but not more than 150 g/m2 11 5911.1000 - Textile fabrics, felt and felt- lined woven fabrics, coated, covered or laminated with rubber, 0 leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams) 6804.1000 - Millstones and grindstones for milling, grinding or pulping 0 6804.2100 - - Of agglomerated synthetic or natural diamond 0 6804.2200 - - Of other agglomerated abrasives or of ceramics 0 6815.1000 - Non electrical articles of graphite or other carbon 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 269

7002.3920 - - - Glass tubing of a kind used for shell blowing, flare and exhaust solely or principally used 0 by flourescent tube, bulb and auto bulb industry 7017.1010 - - - Quartz reactor tubes and holders designed for insertion into diffusion and oxidation 0 furnaces for production of semiconductor wafers 7102.2100 - - Unworked or simply sawn, cleaved or bruted 0 7102.3100 - - Unworked or simply sawn, cleaved or bruted 0 7103.1000 - Unworked or simply sawn or roughly shaped 0 7104.2000 - Other, unworked or simply sawn or roughly shaped 0 7107.0000 Base metals clad with silver, not further worked than semi- manufactured. 0 7109.0000 Base metals or silver, clad with gold, not further worked than semi- manufactured. 0 7111.0000 Base metals, silver or gold, clad with platinum, not further worked than semi- manufactured. 0 7112.3000 - Ash containing precious metal or precious metal compounds 0 7112.9100 - - Of gold, including metal clad with gold but excluding sweepings containing other precious 0 metals 7112.9200 - - Of platinum, including metal clad with platinum but excluding sweepings containing other 0 precious metals 7201.1000 - Non- alloy pig iron containing by weight 0.5 % or less of phosphorus 0 7201.2000 - Non- alloy pig iron containing by weight more than 0.5 % of phosphorus: 0 7202.1100 - - Containing by weight more than 2 % of carbon 0

270 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

7202.2100 - - Containing by weight more than 55% of silicon 0 7202.4100 - - Containing by weight more than 4 % of carbon 0 7202.8000 - Ferro- tungsten and ferro- silico- tungsten 0 7202.9100 - - Ferro-titanium and ferro-silicon-titanium 0 7203.1000 - Ferrous products obtained by direct reduction of iron ore 0 7204.4100 - - Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings, 0 whether or not in bundles 7204.4930 - - - Waste and scrap of auto parts in pressed bundle condition 0 compressors 7209.1891 - - - - Tin mill black plate of thickness 0.30 mm or less 11 7312.9010 - - - Steel cord brass plated (2x0.30HT, 2+2x0.32HT and 3x0.2+6x0.35) of a kind used in 3 manufacture of tyres 7401.0000 Copper mattes; cement copper (precipitated copper). 0 7402.0000 Unrefined copper; copper anodes for electrolytic refining. 0 7403.2900 - - Other copper alloys (other than master alloys of heading 74.05) 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 271

7407.1040 - - - Busbars of electrolytic grade of 99.9 % purity 0 7408.2200 - - Of copper-nickel base alloys (cupro-nickel) or copper-nickel-zinc base alloys (nickel silver) 0 7411.1010 - - - Capillary tube of diameter upto 2.25 mm 0 7411.2200 - - Of copper-nickel base alloys (cupro-nickel) or copper-nickel-zinc base alloys (nickel silver) 0 7419.9100 - - Cast, moulded, stamped or forged, but not further worked 0 7501.2000 - Nickel oxide sinters and other intermediate products of nickel metallurgy 0 7606.9110 - - - Aluminum sheet, anodized/polyurethene coated 0 7606.9210 - - - Aluminium sheet, anodized/polyurethene coated 0 7801.9100 - - Containing by weight antimony as the principal other element 0 7901.1100 - - Containing by weight 99.99 % or more of zinc 0 7901.1200 - - Containing by weight less than 99.99 % of zinc 0 7907.0010 - - - Zinc slugs for dry battery cell containers 0

272 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

8101.9400 - - Unwrought tungsten, including bars and rods obtained simply by sintering 0 8101.9910 - - - Bars and rods, other than those obtained simply by sintering, profiles, plates, sheets, strip 0 and foil 8102.9400 - - Unwrought molybdenum, including bars and rods obtained simply by sintering 0 8102.9500 - - Bars and rods, other than those obtained simply by sintering, profiles, plates, sheets, strip 0 and foil 8103.2000 - Unwrought tantalum, including bars and rods obtained simply by sintering; powders 0 8104.1100 - - Containing at least 99.8 % by weight of magnesium 0 8104.3000 - Raspings, turnings and granules, graded according to size; powders 0 8105.2000 - Cobalt mattes and other intermediate products of cobalt metallurgy; unwrought cobalt; powders 0 8106.0000 Bismuth and articles thereof, including waste and scrap. 0 8111.0000 Manganese and articles thereof, including waste and scrap. 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 273

8113.0000 Cermets and articles thereof, including waste and scrap. 0 8204.2000 - Interchangeable spanner sockets, with or without handles 0 8207.5010 - - - Drills other than parallel or straight shank twist drills 0 8208.4000 - For agricultural, horticultural or forestry machines 0 8208.9010 - - - Knives and cutting blades for paper and paper board 0 8209.0000 Plates, sticks, tips and the like for tools, unmounted, of cermets. 0 8401.2000 - Machinery and apparatus for isotopic separation, and parts thereof 0 8401.3000 - Fuel elements (cartridges) non- irradiated 0 8405.1000 - Producer gas or water gas generators, with or without their purifiers; acetylene gas 0 generators and similar water process gas generators, with or without their purifiers 8410.1200 - - Of a power exceeding 1,000 kW but not exceeding 10,000 kW 0

274 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

8412.9010 - - - For machines of heading 8412.3900 and 8412.8010 0 8412.9020 - - - For machines of heading 8412.1000, 8412.2100, 8412.2900 & 8412.3100 0 8413.1910 - - - Pumps for dispensing chemicals, fitted with sensor 0 8413.9120 - - - Stainless steel fabricated laser welded chamber for pump bowl assembly 0 8413.9130 - - - Other parts for machines of headings 8413.1910, 8413.4000, 8413.7010 and 8413.6010 0 8414.4000 - Air compressors mounted on a wheeled chassis for towing 0 8414.9010 - - - Of machines of heading 8414.1000 and 8414.3010 0 8416.2000 - Other furnace burners, including combination burners 0 8416.3000 - Mechanical stokers, including their mechanical grates, mechanical ash dischargers and 0 similar appliances 8418.9910 - - - Evaporators (roll bond / fin / tube on plate types) 0 8419.2000 - Medical, surgical or laboratory sterilisers 0 8419.3200 - - For wood, paper pulp, paper or paperboard 0 8419.9010 - - - Of machines of heading 8419.2000, 8419.3100, 8419.3200, 8419.3900 & 8419.6000 0 8421.3910 - - - Filter driers used with non-CFC refrigerant gases 0 8423.1000 - Personal weighing machines, including baby scales; household scales 0 8423.2000 - Scales for continuous weighing of goods on conveyors 0 8423.3000 - Constant weight scales and scales for discharging a predetermined weight of material into a 0 bag or container, including hopper scales 8423.8100 - - Having a maximum weighing capacity not exceeding 30 kg 0 8423.8200 - - Having a maximum weighing capacity exceeding 30 kg but not exceeding 5,000 kg 0 8423.9000 - Weighing machine weights of all kinds; parts of weighing machinery 0 8424.3000 - Steam or sand blasting machines and similar jet projecting machines 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 275

8424.9010 - - - Of machines of heading 8424.2010, 8424.3000, 8424.4100, 8424.4900 & 8424.8200 0 8425.4100 - - Built-in jacking systems of a type used in garages 0 8427.1000 - Self- propelled trucks powered by an electric motor 0 8428.6000 - Teleferics, chair- lifts, ski- draglines; traction mechanisms for funiculars 0 8429.5200 - - Machinery with a 360o revolving superstructure 0

276 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

8431.4300 - - Parts for boring or sinking machinery of subheading 8430.41 or 8430.49 0 8432.3100 - - No-till direct seeders, planters and transplanters 0 8433.1100 - - Powered, with the cutting device rotating in a horizontal plane 0 8433.2000 - Other mowers, including cutters bars for tractor mounting 0 8433.4000 - Straw or fodder balers, including pick- up balers 0 8433.6000 - Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce 0 8436.1000 - Machinery for preparing animal feeding stuffs 0 8436.9100 - - Of poultry-keeping machinery or poultry incubators and brooders 0 8437.1000 - Machines for cleaning, sorting or grading seed, grain or dried leguminous vegetables 0 8438.1000 - Bakery machinery and machinery for the manufacture of macaroni, spaghetti or similar products 0 8438.2000 - Machinery for the manufacture of confectionery, cocoa or chocolate 0 8438.5000 - Machinery for the preparation of meat or poultry 0 8438.6000 - Machinery for the preparation of fruits, nuts or vegetables 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 277

8439.1000 - Machinery for making pulp of fibrous cellulosic material 0 8439.3000 - Machinery for finishing paper or paperboard 0 8439.9100 - - Of machinery for making pulp of fibrous cellulosic material 0 8441.4000 - Machines for moulding articles in paper pulp, paper or paperboard 0 8441.9010 - - - Of machines of heading 8441.1000 & 8441.4000 0 8442.4000 - Parts of the foregoing machinery, apparatus or equipment 0 8442.5000 - Plates, cylinders and other printing components; plates, cylinders and lithographic stones, 0 prepared for printing purposes (for example, planed, grained or polished). 8443.1200 - - Offset printing machinery, sheet-fed, office type (using sheets with one side not 0 exceeding 22 cm and the other side not exceeding 36 cm in the unfolded state) 8443.1400 - - Letterpress printing machinery, reel fed, excluding flexographic printing 0 8443.1500 - - Letterpress printing machinery, other than reel fed, excluding flexographic printing 0 8444.0000 Machines for extruding, drawing, texturing or cutting man- made textile materials. 0 8446.3000 - For weaving fabrics of a width exceeding 30 cm, shuttleless type 0 8447.1100 - - With cylinder diameter not exceeding 165 mm 0

278 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

8447.1200 - - With cylinder diameter exceeding 165 mm 0 8447.2000 - Flat knitting machines; stitch- bonding machines 0 8448.1100 - - Dobbies and Jacquards; card reducing, copying, punching or assembling machines for use 0 therewith 8448.2000 - Parts and accessories of machines of heading 84.44 or of their auxiliary machinery 0 8448.3200 - - Of machines for preparing textile fibres, other than card clothing 0 8448.5100 - - Sinkers, needles and other articles used in forming stitches 0 8449.0000 Machinery for the manufacture or finishing of felt or nonwovens in the piece or in shapes, 0 including machinery for making felt hats; blocks for making hats. 8451.2100 - - Each of a dry linen capacity not exceeding 10 kg 0 8451.3000 - Ironing machines and presses (including fusing presses) 0 8451.5000 - Machines for reeling, unreeling, folding, cutting or pinking textile fabrics 0 8453.1000 - Machinery for preparing, tanning or working hides, skins or leather 0 8453.2000 - Machinery for making or repairing footwear 0 8455.3010 - - - Cast iron rolls of a diameter not exceeding 91.44 cm (36”) 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 279

8456.1110 - - - Machines for working any material by removal of material, by laser in the production of 0 semiconductor wafers 8456.1210 - - - Machines for working any material by removal of material, by other light or photon beam 0 in the production of semiconductor wafers 8456.2010 - - - Machines for dry-etching patterns on semiconductor materials 0 8456.2020 - - - Apparatus for stripping or cleaning semiconductor wafers 0 8457.2000 - Unit construction machines (single station) 0 8459.5910 - - - Horizontal,vertical or universal versions with longitudnal traverser upto 810 mm and table 0 size upto 1300 x 300 mm 8461.4000 - Gear cutting, gear grinding or gear finishing machines 0 8461.5010 - - - High speed hacksaw machines of cutting diameter not exceeding 17.5cm or with blades 0 of length not exceeding 45 cm 8463.1000 - Draw- benches for bars, tubes profiles, wire or the like 0 8465.1000 - Machines which can carry out different types of machining operations without tool change 0 between such operations 8465.9200 - - Planing, milling or moulding (by cutting) machines 0 8465.9300 - - Grinding, sanding or polishing machines 0

280 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

8466.3000 - Dividing heads and other special attachments for machines 0 8466.9310 - - - Of machine of heading 8458.1900, 8458.9900, 8459.2910, 8459.3910, 8459.5910, 0 8459.6910, 8459.7090, 8460.9010, 8461.2010, 8459.6920 & 8461.5010 8466.9410 - - - Of machine of heading 8462.1090, 8462.9110 & 8465.9110 0 8467.1100 - - Rotary type (including combined rotary-percussion) 0 8468.2000 - Other gas- operated machinery and apparatus 0 8474.8010 - - - Hydraulic press for ceramic industry of capacity exceeding 80 tons 0 8474.9010 - - - Of machine of heading 8474.1020, 8474.3120, 8474.3210, 8474.3290, 8474.3910 & 0 8474.8010 8474.9020 - - - Of machine of heading 8474.2010, 8474.2090, 8474.3110, 8474.3130, 8474.3190 & 0 8474.8090 8475.1000 - Machines for assembling electric or electronic lamps, tubes or valves or flashbulbs, in glass 0 envelopes 8475.2100 - - Machines for making optical fibres and preforms thereof 0 8477.3010 - - - Of capacity not exceeding 0.22 litres 0 8477.4010 - - - Of capacity not exceeding 0.228 litres 0 8477.5100 - - For moulding or retreading pneumatic tyres or for moulding or otherwise forming inner tubes 0

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 281

8479.2000 - Machinery for the extraction or preparation of animal or fixed vegetable fats or oils 0 8479.3000 - Presses for the manufacture of particle board or fibre building board of wood or other 0 ligneous materials and other machinery for treating wood or cork 8479.5000 - Industrial robots, not elsewhere specified or included 0 8479.8100 - - For treating metal, including electric wire coil-winders: 0 8479.8910 - - - Eyeleting, fastening and thread sucking machines 0 8479.8920 - - - Automatic machines for attaching rivets, metal buttons, eyelets etc on garments. 0 8479.9010 - - - Of machines of heading 8479.2000, 8479.6000, 8479.8210, 8479.8230 & 8479. 8290 0 8486.1000 - Machines and apparatus for the manufacture of boules or wafers 0 8486.2000 - Machines and apparatus for the manufacture of semiconductor devices or of electronic 0 integrated circuits 8486.3000 - Machines and apparatus for the manufacture of flat panel displays 0 8486.4000 - Machines and apparatus specified in Note 9 (C) to this Chapter 0 8487.1000 - Ships’ or boats’ propellers and blades therefor 0 8501.2000 - Universal AC/DC motors of an output exceeding 37.5 W 0 8501.3110 - - - Photovoltaic generators consisting of panels of photocells combined with other apparatus 0

282 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

8501.3210 - - - Photovoltaic generators consisting of panels of photocells combined with other apparatus 0 8501.5320 - - - Submersible motors of stainless steel 0 8501.5340 - - - H.T Motors with operating input voltage above 1 kV 0 8503.0010 - - - Of machine of heading 8501.1000, 8501.2000, 8501.3100, 8501.3200, 8501.3300, 0 &8502.3900 8504.9010 - - - On load-tape changer for power transformers 0 8505.2000 - Electro- magnetic couplings, clutches and brakes 0 8514.2000 - Furnaces and ovens functioning by induction or dielectric loss 0 8514.4000 - Other equipment for the heat treatment of materials by induction or dielectric loss 0 85.07 Electric accumulators, including separators therefor, whether or not rectangular (including square). 8507.1010 - - - Meant for motor cars of heading 87.03, vehicles of sub-headings 8703.2113, 8703.2115, 35 8704.3150, 8704.3190, 8703.3225 and vehicles of heading 87.11 8507.1020 - - - Meant for vehicles of heading 87.02 and sub-headings 8701.2020, 8701.2090, 35 8701.9220, 8701.9320, 8701.2040, 8704.2219, 8704.2299 and 8704.2390

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 283

8517.6950 - - - Set top boxes for gaining access to internet 11 8517.6970 - - - Networking equipments like LAN bridges, hubs, switches and repeaters 3 8519.8110 - - - Dubbing system of a kind used in film studios and production houses 0 8519.8920 - - - Dubbing system of a kind used in film studios and production houses 0 8523.8010 - - - Other, for reproducing representations of instructions, data sound and image, recorded in 0 a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine 8528.4200 - - Capable of directly connecting to and designed for use with an automatic data processing 0 machine of heading 84.71 8531.1000 - Burglar or fire alarms and similar apparatus 0 8531.9020 - - - Parts of apparatus of sub-heading 8531.2000 0 8533.1000 - Fixed carbon resistors, composition or film types 0 8533.2100 - - For a power handling capacity not exceeding 20 W 0 8533.3100 - - For a power handling capacity not exceeding 20 W 0 8533.4000 - Other variable resistors, including rheostats and potentiometers 0 8539.9010 - - - Tungsten filament and lead in wire for bulbs and tube lights 0 8541.1000 - diodes, other than photosensitive of light-emitting diodes(LED) 0 8541.2100 - - With a dissipation rate of less than 1 W 0

284 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

8541.3000 - Thyristors, diacs and triacs, other than photosensitive devices 0 8541.4000 - Photosensitive semicondutctor devices, including photovoltaic cells whether or not 0 assembled in modules or made up into panels; light-emitting diodes(LED) 8542.3100 - - Processors and controllers, whether or not combined with memories, converters, logic 0 circuits, amplifiers, clock and timing circuits, or other circuits 8543.3000 - Machines and apparatus for electroplating, electrolysis or electrophoresis 0 8543.9010 - - - Of machines of heading 8543.1000 & 8543.2000 0 8703.2250 - - - Components for the assembly / manufacture of sport utility vehicles in any kit form 60 8703.2312 - - - - Components for the assembly / manufacture of sport utility vehicles in any kit form 75 8908.0000 Vessels and other floating structures for breaking up. 0 9032.1010 - - - Of a kind used in refrigerators, deep-freezers and air-conditioners 0 98.01 Services provided or rendered by hotels, marriage halls, lawns, clubs and caterers. 9801.3000 Services provided or rendered by marriage halls and lawns 9801.6000 Ancillary services provided or rendered by hotels, restaurants, marriage halls, lawns, caterers 98.05 Services provided or rendered by persons authorized to transact business on behalf of others. 9809.0000 Services provided or rendered by persons engaged in contractual execution of work.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 285

other catastrophe, as are certified by the authorized officer of Federal/Provincial Government.

(ii) Plant, machinery and equipment imported by way of donation for installation in the Authority.

(iii) Goods imported for aircrafts, not registered in Pakistan and under distress, for repair or maintenance, subject to authentication by Civil Aviation Authority of Pakistan

SUB-CHAPTER III IMPORTS BY CHARITABLE, EDUCATIONAL, SCIENTIFIC INSTITUTIONS AND HOSPITALS. Note For the purpose of sub-chapter III, the expression: section 2(36C) of the Income Tax Ordinance, 2001;

(ii) “Gifts or Donations” include goods other than vehicles of chapter 87 of the First Schedule to the said Act, donated by the donors residing abroad. However, Mobile health unit/clinic with standard accessories (PCT 8705.9000) and ambulances received as gift or donation from abroad shall be eligible for the benefit provided that the same are imported as per Serial No. 116 of Customs General Order No.12 of 2002, dated the 15th June, 2002; and

(iii) “Competent Authority” means: Education or Ministry of Science & Technology or any other relevant Ministry of the Federal Government; relevant authority of the Provincial Government; and

(iii) in case of a university recognized by the University Grants Commission, the Registrar of the University.

286 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I PCT CODE Description CD (%)

(1) (2) (3) 9912 Imports by Edhi Foundation: 0

(i) Following goods imported by Abdul Sattar Edhi Foundation and Bilques Edhi Foundation, subject to furnishing of a certificate by Maulana Abdul Sattar Edhi son of Haji Abdul Shakoor Edhi or Mr. Faisal Edhi, Vice Managing Trustee and Qubra Edhi, Trustee, Edhi Foundation at the time of import of each consignment to the effect that the goods are meant for use by Edi Foundation or, as the case may be, by Bilquis Edhi Foundation. (In the case of goods at serial No. 14,15,16, the words “Edhi Foundation” or “as the case may be , Bilquis Edhi Foundation “are inscribed at some prominent place on the body of each vehicle, aeroplane or helicopter); 1. Butter oil(04.05) 2. Rice(10.06) 3. Grains(10.07) 4. Cooking oil(Chapter 15) 5. Vitamins(29.36) 6. Hormones.(29.37) 7. Pencillin (29.41) 8. Medicaments(30.04) 9. Waddings, guaze, bandages and similar articles (for example, dressings, adhesive plaster, poultices) impregnated or coated with pharmaceutical substances.(30.05) 10. Pharmaceutical goods (30.06) 11. Worn clothing(63.09) 12. Wireless transmission apparatus (85.15) 13. Wireless reception apparatus.(85.27) 14. Ambulances (87.03) 15. Mobile radiological units(87.05) 16. Helicopters, aeroplanes (88.02) 17. Parts of helicopters and aeroplanes (Respective headings) 18. Instruments and appliances used in medical or surgical sciences.(90.18) 19. Orthopaedic appliances, including crutches, surgical belts and trusses; splints and other fracture appliances, artificial parts of the body, hearing aids and other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability (90.21) 20. Apparatus based on the use of X-rays for medical or surgical uses, control panels and desks, screens, examination or treatment tables, chairs and the like(90.22).

(ii) The ambulances already imported or to be imported under S.No. 14 of Para (i) above may be disposed of after expiry of seven years from the date of importation without payment of duty and taxes leviable at the time of import with the prior approval of FBR. 9913 0 Gifts or donations received by a charitable non-profit making hospital or institution, solely for the purpose of advancing the declared objectives of such hospital or institution, subject to the following conditions, namely:-

(i) no condition is attached to the gift or donation by the donor and the receiving institution or hospital is at liberty to use the same in accordance with its declared objectives; and

(ii) the receiving institution or hospital furnishes an undertaking in writing to the respective Collector of Customs to the effect that such gifts or donations will not be sold, utilized or disposed of otherwise than for the purpose for which the same have been received and binds itself to pay the leviable duties in the event of a breach of the undertaking.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 287 PCT CODE Description CD (%)

(1) (2) (3) 9914 Imports by Charitable Institutions and Hospitals: 0 Following imports by (i) charitable non-profit making institutions operating hospitals of fifty beds or more; or (ii) hospitals run by the Federal or a Provincial Government; or (iii) the Federal or a Provincial Government exclusively meant for hospitals run by the Federal or a Provincial Government:-

(1) Machinery, equipment, apparatus, appliances, instruments and spares thereof classifiable under Chapter 84, 85 or 90, excluding such items as are notified through a Customs General Order issued by the Federal Board of Revenue from time to time;

(2) Oxygen cylinders, wheelchairs, medical, surgical, dental furniture and spares thereof;

(3) Re-agents, disposables and radioactive isotopes like Cobalt-60 falling under PCT 2844.4000.

(4) Modular/Particle Free Operation Theatre equipped with OT Lights, wall panels with anti- bacterial spray / coating, specialized ventilating system for germ free air flow, anti-static door panel to avoid short circuit and Sterilized Flooring panels;

(5) Mobile health unit/clinic with standard accessories (PCT 8705.9000) Subject to the following conditions:-

(a) the importing institution operating a hospital of fifty beds or more shall furnish a proof thereof to the satisfaction of respective Collector of Customs.

(b) the head of the importing institution or hospital shall furnish an undertaking in writing to the respective Collector of Customs to the effect that imported goods are bona fide requirement of the project or for in house use and these shall not be sold, utilized or disposed of otherwise than for the purpose for which the same have been imported and binds itself to pay the leviable duty and taxes in the event of breach of the undertaking.

(i) in case of Federal Government hospitals or institutions or charitable non-profit making institutions by the Ministry of National Health Services Regulations and Coordination (NHSRC).

(ii) in case of Provincial Government hospitals or institutions or charitable non-profit making institutions by the Secretary of the Health Department of the province where such hospital or institution is situated.

(iii) in case of the Federal Government or a Provincial Government by the Ministry of National Health Services Regulations and Coordination (NHSRC) or Secretary of the Health Department of the Province where such hospital is situated, respectively.

(iv) in case of hospitals/institutions of Armed Forces, respective Surgeon Generals (Director General Medical Services) or equivalent rank/authority.

(v) in case of Fauji Foundation hospitals, M.D Fauji Foundation.

(vi) in case of Pakistan Atomic Energy Commission hospitals/institutions, Director General Procurement PAEC.

(d) In case of private sector institutions or hospitals, accountal of the goods shall be ensured by the Board of Trustees/ Governors and proof thereof shall be furnished to the satisfaction of respective Collector of Customs on demand.

(e) Exemption under this PCT code will also be available to the hospitals being set up or constructed subject to the above conditions.

(f) The goods imported under this PCT shall not be sold or otherwise disposed of before 5 years of import date. After 5 years, the goods may be disposed of on payment of

288 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I PCT CODE Description CD (%)

(1) (2) (3) customs duties and taxes at statutory rates leviable at the time of import and taking into consideration the physical condition of goods as determined by respective Customs Collectorate.

(g) machinery and equipment falling under chapters 84, 85 or 90 may be allowed to be donated or sold to any other charitable institution / hospital, after 5 years of import, without payment of duty/taxes, with permission of the respective Customs Collectorate, subject to fulfillment of the aforesaid conditions. 9915 Goods imported by or donated to non -profit making educational and research institutions 0 subject to the following conditions:

(i) the imported goods have an educational and scientific character;

(ii) the importing or receiving institutions are recognized, aided or run by the Federal Government or a Provincial Government, a City Government or a District Government;

(iii) the importing or receiving institution shall produce a certificate from the competent authority that -

(a) goods of equivalent educational and scientific value are not produced in Pakistan; and

(b) the imported goods will be used exclusively under the control and responsibility of the importing or receiving institution. 9925 (A) Artificial kidneys, hemodialysis machines, hemodialyzers, A.V. fistula needles, 0 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 catheters. (B) Following items and appliances for Ostomy use: - 0 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. 10. Ostomy (Colostomy/Ileostomy/Urostomy) Adhesive Spray & 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 and washing peristomal skin 19. Night Drainage Bag 20. Cystoscope 21. Lithotripter 22. Colonoscope

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 289 PCT CODE Description CD (%)

(1) (2) (3) 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

(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

(d) Turp Resecting Loops

(e) Diathermy Cord 9941 Following goods imported by or donated to municipal authorities including development 0” authorities, Federal Government, Provincial Government, Government of Azad Jammu and Kashmir, Government of Gilgit-Baltistan, National Disaster Management Authority (NDMA), Provincial Disaster Management Authority (PDMA) and Government Emergency/Rescue services, excluding contractors thereof, subject to the condition that the goods shall not be sold or otherwise disposed-off within a period 10 years of imports without prior approval of the FBR and payment of customs duties and taxes leviable at the time of import. 1. Ambulances ((Respective heading) 2. Fire fighting vehicles (PCT 8705.3000) 3. Waste disposal trucks (PCT 8704.2200, 8704.2300) 4. Incinerators for disposal waste management (8417.8000) 5. Motorized sweepers (PCT 8479.8990) 6. Brake down lorries (PCT 8705.9000) 7. Special purpose vehicles for the maintenance of street lights and overhead cables (8705.9000) 8. Snow ploughs (PCT 8430.2000) 9. Mobile health unit/clinic with standard accessories (PCT 8705.9000) *****

290 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I THE SECOND SCHEDULE FIFTH SCHEDULE TO THE CUSTOMS ACT 1969 (IV OF 1969)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 291 THE SECOND SCHEDULE [See section 3 (36 )] In the Customs Act, 1969 (IV of 1969), for the Fifth Schedule, the following shall be substituted, namely:- “THE FIFTH SCHEDULE [see section 18(1A)] Part-I Imports of Plant, Machinery, Equipment and Apparatus, including Capital Goods for various industries/sectors Note:- For the purposes of this Part, the following conditions shall apply, besides the conditions as specified in column (5) of the Table below: -

(i) the imported goods as are not listed in the locally manufactured items, notified through a Customs General Order issued by the Federal Board of Revenue (FBR) from time to time or, as the case may be, certified as such by the Engineering Development Board: Provided that the condition of “local manufacturing” shall not be applicable on import of machinery, equipment and other capital goods imported as plant for setting up of a new power unit of 25 MW and above duly certified by Ministry of Water and Power in respect of those power projects which are on IPP mode meant for supply of electricity to national grid; Provided further that condition of local manufacturing shall not be applicable for a period of three years, commencing on 1st July, 2018 and ending on 30th June, 2021, against Sr.No.12 of Table under Part-I of Fifth Schedule to the Customs Act, 1969, on import of machinery, equipment and other capital goods imported for new private transmission lines projects under the valid contract

(s) or letter (s) of credit and the total C&F value of such imports for the project is US $ 50 million or above duly certified by the Ministry of Energy (Power Division);

(ii) except for S. Nos. 1(H), 14, 20,21 and 22 of the Table, the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify in the prescribed manner and format as per Annex-A that the imported items are the company’s bona fide requirement. He shall furnish all relevant information online to Pakistan Customs

292 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969 IV of 1969). In already computerized Collectorates or Customs stations operational, the Director Reforms and Automation or any other person authorized by the Collector in this behalf shall enter the System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis;

(iii) in case of partial shipments of machinery and equipment for setting up a plant, the importer shall, at the time of arrival of first partial shipment, furnish complete details of the machinery, equipment and components required for the complete plant, duly supported by the contract, lay out plan and drawings; and mentioned in column (4), the rate of 0%, 3% or 11% shall be applicable only for such goods which are chargeable to 3% or 11% duty under the First Schedule to Customs Act, 1969.

(v) Goods imported temporarily for projects under serial numbers 9, 10, 11 and 12, if not re-exported on the conclusion of the project, may be allowed retention or transfer after conclusion of the project, 0.25% surcharge on C&F value of the goods for each year of retention, besides payment of duties and taxes, chargeable,if any. equipment, spares and accessories, classified in Chapters 84, 85 or any other chapter of the Pakistan Customs Tariff, required for- refractory bricks and materials required for setting up a and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like; and floriculture, horticulture, livestock, cool chain, dairy and poultry industry;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 293

TABLE

8701.9320

or without scrapper

equipment, water reel traveling

294 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

sprinkler system.

preventers and automatic controllers.

machinery

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 295

Corporate Dairy Farmers Association. and sorting or grading equipment. equipment. mentioned in Column (3), the Ministry of National Food Security and Research shall certify in the prescribed manner and format as per Annex-B to the effect that the imported goods are bona fide requirement for use in the Agriculture sector. The Authorized Officer of the Ministry shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969. National Food Security and microns). Research shall certify in the prescribed manner and 9406.9010 format as per Annex-B to the use in the Agriculture sector. The Authorized Officer of the Ministry shall furnish all

296 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

password obtained under section 155D of the Customs Act, 1969. 2. The goods shall not be sold or otherwise disposed of within a period of five years of its import except with the prior approval of the FBR.

prescribed manner and format as per Annex-B to the concentrate. effect that the imported goods are bona fide requirement for use in the Agriculture sector. The Authorized Officer of the Ministry shall furnish all Pakistan Customs Computerized System against a specific user ID and section 155D of the Customs Act, 1969.

preamble.

moulding

engine fitted on common base for refrigerated containers. chests, cabinets. Headings processing machinery and

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 297

equipment. machine storage facilities including silos. sectors engaged in establishing or providing cool chain activities or part thereof. preamble. replacement or expansion of desalination plants, coal firing system, gas processing plants and oil and gas field prospecting. 5 Following machinery, equipment, 1. The project requirement shall the prescribed format and manner as per Annex-B and veterinary furniture. fittings. or otherwise disposed of

the time of import. Breach of this condition shall be Equipment

298 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

and sub-entry at serial D (2)

licenses, leases and who

enter into agreements with 2. Construction machinery, equipment security in the form of a post- datedcheque for the differential amount between the statutory rate of customs duty and sales tax and the amount payable under this Schedule, along with an undertaking to pay the customs duty and sales tax at the statutory rates in case such goods are not re- exported on conclusion of the project.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 299

statutory rates of duties& taxes as were applicable at the time of import. These goods shall, however, be allowed to be transferred to other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable. The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs. However, a surcharge @ 6% per 2. Temporarily imported goods annum shall be charged on the shall be cleared against a deferred amount. security in the form of a post-

datedcheque for the temporary basis as requiredfor mine amount payable under this construction or extraction phase. Schedule, along with an customs duty and sales tax at the statutory rates in case such goods are not re- exported on conclusion of the project. 3. The goods shall not be sold or otherwise disposed of without prior approval of the FBR. In case such goods are sold or otherwise disposed of after Ten years of their importation, the same shall be subject to payment of duties & taxes as prescribed by the FBR. In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of Ten years from the date of their importation, the same shall be subject to payment of statutory rates of duties & taxes as were applicable at the time of

300 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I S. No. Description PCT Code Customs Conditions

(1) (2) (3) (4) (5) import. These goods shall, however, be allowed to be transferred to other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable. The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs. 4. Condition (iv) of the preamble. 8 Coal mining machinery, equipment, Respective 0% 1. This concession shall be spares, including vehicles for site use Headings available to those Mining i.e. single or double cabin pickups Companies or their imported for Thar Coal Field. authorized operators or contractors who hold permits, licenses, leases and who enter into agreements with the Government of Pakistan or a Provincial Government. 2. The goods shall not be sold or otherwise disposed of without prior approval of the FBR. In case such goods are sold or otherwise disposed of after Ten years of their importation, the same shall be subject to payment of duties & taxes as prescribed by the FBR. In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of Ten years from the date of their importation, the same shall be subject to payment of statutory rates of duties & taxes as were applicable at the time of import. These goods shall, however, be allowed to be transferred to other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable. The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs. 9 1. Machinery, equipment and spares Respective 0%,3%,5% 1. This concession shall also be meant for initial installation, Headings available to primary balancing, modernization, contractors of the project replacement or expansion of

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 301 S. No. Description PCT Code Customs Conditions

(1) (2) (3) (4) (5) projects for power generation upon fulfillment of the through oil, gas, coal, wind and following conditions, namely:- wave energy including under construction projects, which entered (a) the contractor shall into an implementation agreement submit a copy of the with the Government of Pakistan. contract or agreement under which he intends to 2. Construction machinery, equipment import the goods for the and specialized vehicles, excluding project; passenger vehicles, imported on

(b) the chief executive or temporary basis as required for the construction of project. head of the contracting company shall certify in the prescribed manner and format as per Annex- A that the imported goods are the project’s bona fide requirements; and 2. Temporarily imported goods shall be cleared against a security in the form of a post- dated cheque for the differential amount between the statutory rate of customs duty and sales tax and the amount payable under this Schedule, along with an undertaking to pay the customs duty and sales tax at the statutory rates in case such goods are not re- exported on conclusion of the project. 3. The goods shall not be sold or otherwise disposed of without prior approval of the FBR. In case such goods are sold or otherwise disposed of after Ten years of their importation, the same shall be subject to payment of duties & taxes as prescribed by the FBR. In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of Ten years from the date of their importation, the same shall be subject to payment of statutory rates of duties & taxes as were applicable at the time of import. The construction machinery may, however, be allowed to be transferred to other entitled projects of the sector, with prior approval of

302 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

the FBR, subject to payment of duties and taxes, if applicable. The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs.

Condition (iv) of the preamble. balancing, modernization, replacement or expansion of projects for power generation through gas, coal, hydel and oil including under construction projects.
Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the construction of project. 11. 1. Machinery, equipment and spares Respective 0% 1. This concession shall also be energy sources like solar, wind,

(a) the contractor shall micro-hydel, bio-energy, ocean, submit a copy of the waste-to-energy and hydrogen cell contract or agreement etc. under which he intends to

import the goods for the and specialized vehicles, excluding

(b) the chief executive or passenger vehicles, imported on and format as per Annex- Explanation:-The expression A that the imported goods “projects for power generation” are the project’s bona means any project for generation of fide requirements; and electricity whether small, medium or shall be cleared against a national grid or to any other user or differential amount between the statutory rate of customs duty and sales tax and the amount payable under this Schedule, along with an undertaking to pay the customs duty and sales tax at the statutory rates in case such goods are not

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 303

re-exported on conclusion of the project. 3. The goods shall not be sold or otherwise disposed of without prior approval of the FBR. In case such goods are sold or otherwise disposed of after Ten years of their importation, the same shall be subject to payment of duties &taxes as prescribed by the FBR. In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of Ten years from the date of their importation, the same shall be subject to payment of statutory rates of duties & taxes as were applicable at the time of import. The construction machinery may, however, be allowed to be transferred to other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable. The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs. 12 1. Machinery and equipment meant for Respective 0%,3%, 5% 1. This concession shall also be equipment” shall mean:- submit a copy of the contract or agreement operated by power of any import the goods for the description, such as used in the project; generation of power;

power transmission and distribution and format as per Annex-

304 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

differential amount between clauses (a) and (b) above, and specialized vehicles, excluding the statutory rates in case passenger vehicles, imported on such goods are not re-exported temporary basis as required for the on conclusion of the project. construction of the project.

or otherwise disposed of without prior approval of the FBR. In case such goods are sold or otherwise disposed of after Ten years of their importation, the same shall be subject to payment of duties & taxes as prescribed by the FBR. In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of Ten years from the date of their importation, the same shall be subject to payment of statutory rates of duties & taxes as were applicable at the time of import. The construction machinery may, however, be allowed to be transferred to other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable. The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs.

preamble. designed for insertion into diffusion and oxidation furnaces for production of semiconductor wafers.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 305

apparatus for water. and apparatus for liquids. including baby scales; household scales. goods on conveyors. for discharging a predetermined weight of material into a bag or container, including hopper scales. maximum weighing capacity not exceeding 30 kg. maximum weighing capacity exceeding 30 kg but not exceeding 5,000kg. kinds; parts of weighing machinery of machines of heading 8423.2000 & 8423.3000. all kinds; parts of weighing machinery of machines of heading 8423.2000 & 8423.3000. LAN bridges, hubs excluding switches and repeaters. 5 cg or better, with or without weights. cg or better, with or without weights. refrigerators and air-conditioners. hydraulic or pneumatic. regulating or controlling instruments and apparatus. scientific equipment. Headings

306 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

use in buildings, fittings, repairing or refitting of ships, boats or floating structures imported by Karachi Shipyard and Engineering Works Limited.

balancing, modernization, replacement or expansion of oil refining (mineral oil and other value added petroleum products), petrochemical and petrochemical downstream products including fibers and heavy chemical industry, cryogenic facility for ethylene storage and handling.

balancing, modernization, replacement or expansion of oil refining (Hydro-cracking)

and Jewelry Company shall

certify in the prescribed format and manner as per 3405.9000 Annex-B that the imported goods are bona fide project

requirement. The authorized

(3) Chain saw/diamond wire saw in all 8202.4000 5% person of the Company shall section 155D of the Customs

Act, 1969.

For the projects of Marble & prescribed format and

(6) Air compressor (27cft and above). 8414.8010 5% manner as per Annex-B that

(7) Machine and tool for stone work; 8464.9000 0% bonafide project requirement. segments (all type & dimensions),

and power drilling machines, steel

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 307

drill rods and spring (all sizes and section 155D of the Customs dimensions), whole finding system Act, 1969. with accessories, manual portable

rock drills, cross cutter and bridge 3. The goods shall not be sold or cutters. otherwise disposed of without prior approval of the FBR. In

(8) Integral drilling steel for horizontal 8466.9100 0% case such goods are sold or and vertical drilling, extension thread otherwise disposed of after rods for pneumatic super long drills, Five years of their tools and accessories for rock drills. importation, the same shall be subject to payment of duties & taxes as prescribed by the FBR. In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of Five years from the date of their importation, the same shall be subject to payment of statutory rates of duties & taxes as were applicable at the time of import. The machinery may, however, be allowed to be transferred to other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable. The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs.

preamble.

project related items for setting up of hotels located in an area of 30 km around the zero point in Gwadar. password obtained under

section 155D of the Customs Act, 1969.

The goods shall not be sold or otherwise disposed of without prior approval of the FBR and payment of customs

308 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

duties and taxes leviable at the time of import.

preamble.

19 Effluent treatment plants. Respective 0%,3%,5% Condition (iv) of the preamble. headings

8501.3210

(1) Off-grid/On-grid solar power system (with or without provision for USB/ charging port) comprising of :

50 Ah in case of portable 8507.6000 system). (with or without switches). hybrid with provision for direct connection/ input renewable energy source and with Maximum Power Point Tracking (MPPT). solar energy.

solar, wind, geothermal etc.

Plants. Plants. modules. exceeding 40MW. exceeding 40MW.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 309

accessories. Engine. Plant System batteries. hybrid) with provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT) accessories.

310 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

accessories. headings heading

(ii). Assistant/ Feeding tank (iii). Circulation Pump Respective headings Rod (one piece with one solar water heater) (v). Solenoid valve (one piece with one solar water heater) absorber plates metal surfaces plastic Sheet (Chemical).

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 311

Equipment. machine). silicon ingot. headings solar data collection. electronic devices. controller. solution above 200 KW (complete system). off-grid solutions comprising of: (i). Turbine with Generator/ Alternator. (ii). Nacelle with rotor with or without tail. Respective 0% (iv). Pole/ Tower. (v). Inverter for use with Wind Turbine. use with wind turbine).

312 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

control equipment. (AEDB) and concurred to by the FBR. renewable energy technologies or for conservation of energy:- 0% 8539.5010 8539.5020 ballast, PV module, fitting and 8539.3290 8539.5010 8539.5020 and mast. 8539.5020 with provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT), charge controllers and solar batteries. different colors). controllers

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 313

provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT). If imported by LED Light and under the Sales Tax Act, 1990 determination by the Input Output Bulbs Co-efficient Organization (IOCO). Circuit Board (MCPCB) of LED Lights and Bulbs (1-300W) Islamabad shall certify in the prescribed manner and format as per Annex-B that the imported goods are bona fide project requirement. The goods shall not be sold or otherwise disposed of within a period of five years of their import except with the prior approval of the FBR and payment of customs duties and taxes leviable at the time of import.

not eligible for the said concession. In case of violation, duty and taxes shall be recovered beside initiation of penal action under the Customs Act, 1969.

314 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

are bona fide project requirement of the Unit as per Annex-B. The goods shall not be sold or otherwise disposed of without prior approval of the Board.

27 Following motor vehicles for the This concession shall be available Construction Companies Exchange Commission of Pakistan (SECP) and Pakistan Engineering Council. Telecommunication Authority. prescribed format and manner as per Annex-B that the imported goods are bona fide project requirement and shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969. determine the requirement of such Pre-fabricated structures in the form of finished rooms for setting up new hotels/motels in the specified areas. 32. Cinematographic equipment imported i. The Ministry of Information,

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 315

(1) Projector 9007.2000 3% Annex-B to the effect that the imported goods are bona-fide

(2) Parts and accessories for projector 9007.9200 3% requirement. The Authorized Officer of Ministry shall furnish

(3) Other instruments and apparatus for 9032.8990 3% all relevant information online cinema to Pakistan Customs Computerized System against specific user ID and password obtained under section 155D of the Customs Act, 1969. otherwise disposed of within a period of five years of their approval of the FBR.

(ii) IOCO shall verify and determine quota requirement of such equipment.

8537.1090

period of five years of its import without prior approval of the FBR and payment of customs duties and taxes leviable at the time of import. 34 Plant and machinery excluding Chapters 0% This exemption shall be available industries, intending to manufacture

(a) the importer is registered taxable goods, during their construction under the Sales Tax Act on or and installation period. after the first day of July,

(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

316 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

another industrial undertaking in Pakistan.

(d) the goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs duties and taxes leviable at the time of import. 35 1. Plant, machinery and equipment, Respective 5% 1. In respect of goods mentioned

Gas Pipeline Project” by the Ministry of Energy (Petroleum Division).

(a) the contractor and the

(b) the chief executive or company shall certify in the prescribed manner requirements; and developers, contractors and service companies of the above projects. 3. Items imported at concessionary rates which become surplus, scrap, junk, obsolete or otherwise shall be disposed of in the following contractors of above projects. manner, namely:-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 317 S. No. Description PCT Code Customs Conditions

(1) (2) (3) (4) (5)

(a) in the event an item other than specialized vehicles, is sold to another company involved in infrastructure development of Large Diameter Pipelines, no import duties shall be levied or charged. Otherwise, it shall be sold through a public tender and duties shall be recovered at the rate of ten per cent ad valorem of the sale proceeds;

(b) for specialized vehicles there would be a minimum retention period of five years after which the vehicles may be disposed of in the manner provided in (a) above except that the full rate of import duties, net of any import duties already paid, shall be charged subject to an adjustment of depreciation at the rate of two per cent per month up to a maximum of twenty four months;

(c) specialized vehicles can be surrendered at any time to the Government of Pakistan, without payment of any import duties, under intimation to the FBR; and

(d) these items, if rendered as scrap, with change in their physical status, composition or condition and PCT classification, shall be chargeable to duties & taxes accordingly, at standard rates; 4. In the event a dispute arises whether any item is entitled to exemption under this schedule, the item will be immediately released by the Customs Department against a corporate guarantee valid for a period of nine months, extendable by the concerned

318 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I S. No. Description PCT Code Customs Conditions

(1) (2) (3) (4) (5) Collector of Customs on time to time basis. A certificate from the relevant Regulatory Authority that the item is covered under this serial number shall be given due consideration by the Customs Department towards finally resolving the dispute. Disputes regarding the local manufacturing only shall be resolved through the Engineering Development Board. 4. Machinery, equipment, vessels, Respective 0% 1. The concession available to dumpers, specialized vehicles, headings contractors and service accessories, spares and all other items companies of the project will essentially required for the above be subject to the following projects imported by developers, conditions, namely:- contractors and service companies on

(a) the contractor and the an import-cum-export basis for a service provider shall period of five years. submit a copy of the contract or agreement under which he intends to import the goods for the project;

(b) the chief executive or head of the contracting company shall certify in the prescribed manner and format as per Annex- A that the imported goods are the project’s bona fide requirements; and 2. Ministry of Energy (Petroleum Division) shall certify in the prescribed manner and format as per Annex-B to the effect that the imported goods are bonafide requirement for the project. 3. Temporarily imported goods shall be cleared against a corporate guarantee valid for a period of five years equal to the value of import duties and taxes exempted, extendable by the Collector of Customs on time to time basis, if the importer has a definite contract. The concerned Collector shall allow extension for a further period, as deemed appropriate, on payment of onepercent

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 319

surcharge for each year on C&F value of the goods for which extension has been sought. Should the goods etc., not be exported on the expiry of the project or transferred with the approval of the Collector of Customs to another Large Diameter Pipeline Project, or the period of stay has been extended by the Collector of Customs, then the developer, contractor or service company, as the case may be, shall be liable to pay duties and taxes as chargeable at the time of import.

Annex-A

Header Information Details of Input goods (to be filled by the chief executive of the importing company) Goods imported (Collectorate of import) e

H S (a p p l ic a b l e ) (a p p l i c a b l e ) Q ll M a c h . N o . o C

(4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

CERTIFICATE BY THE CHIEF EXECUTIVE, OR THE PERSON NEXT IN HIERARCHY DULY AUTHORIZED BY THE CHIEF EXECUTIVE: It is certified that the description and quantity mentioned above commensurate with the project requirement and that the same are not manufactured locally. It is further certified that the above items shall not be used for any other purpose. NOTE:-In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished on line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969( IV of 1969).

320 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Explanation.- Chief Executive means.- limited company or multinational organization; or 4. Principal Officer in case of a foreign company. Annex-B

Header Information d e u Q

(3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

REGULATORY AUTHORITY: It is hereby certified that the imported goods are genuine and bonafide requirement of the project and the same are not manufactured locally.

NOTE:- In case of clearance through Pakistan Customs Computerized System, the above information shall be furnished on line against a specific user I.D. and password obtained under section 155D of the Customs Act, 1969( IV of 1969).

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 321 PART-II Import of Active Pharmaceutical Ingredients, Excipients/Chemicals, Drugs, Packing Material/ Raw Materials for Packing and Diagnostic Kits and Equipment, Components and other Goods The Imports under this part shall be subject to following conditions, namely.- (i). The active pharmaceutical ingredients, Excipients /chemicals, packing material and raw material for packing shall be imported only for in-house use in the manufacture of specified pharmaceutical substances, as approved by the Drug Regulatory Agency of Pakistan. (ii). The requirement for active pharmaceutical ingredients and Excipients/chemicals, drugs as specified in Table A, B & C, shall be determined by the Drug Regulatory Agency of Pakistan; (iii). The requirement for packing materials/raw materials for packing, asspecified in Table-D, shall be determined by Input Output Coefficient Organization; (iv). The designated/authorized representative person of Drug RegulatoryAgency of Pakistan shall furnish all relevant information, as set out in this part, online to the Customs computerized system, accessed through the unique user identifier obtained under section 155 D of the Customs Act 1969, along with the password thereof. (v). For “Respective Headings” entries in column (3) of the Table against which two rates of customs duty 3% and 5% have been mentioned in Column (4), the rate of 3% shall be applicable only for such goods which are chargeable to 3% duty under the First Schedule to the Customs Act, 1969. Table A (Active Pharmaceutical Ingredients) S No Description PCT Code Customs duty (%)

(1) (2) (3) (4) 1 Flurbiprofen 2916.3990 5% 2 Aspirin 2918.2210 5% 3 Amlodipine 2933.3990 5% 5 Deferiprone 2933.3990 5% 6 Lamivudine 2933.3990 5%

322 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(Pharmaceutical grade) (compacted/ powder form for oral use) sodium/potassium

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 323

heading

324 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 325

326 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Table B

(Excipients/Chemicals) (ii). Gum acacia powder BP (iii). Gumbenzoin, Styrax, Tragacanth,Xanthan(Pharmaceutical grades) (ii). Valerine roots (Pharmaceutical grade) 1516.2020 pharmaceutical Products on the quantity to be determined by Ministry of Health (ii). Dextrose (injectable grade and pharmaceutical grade) (ii). Sodium chloride (injectable grade) (Pharmaceutical grades) tar (Pharmaceutical grade) Microcrystalline petroleum wax, ozokerite, lignite wax, peat wax and other mineral waxes (Pharmaceutical grade) (ii). Sodium hydroxide solid or aqueous solution (Pharmaceutical grade)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 327

(Pharmaceutical grade) (ii). Dibutylphthalate (Pharmaceutical grade) benzene acetic acid (HO-EPCP) (Pharma grade) methoxyimnno Acetic acid (ATMA); isopropoxyimino Acetic Acid[ATIBAA or ATBA; Salt(SIMA); hydroxymethyl ceph-3-em-4- carboxyclic acid(Pharma grade); (ii). Ampnocerin “K” or “KS” (Pharma grade)

(ii) Rich starch

328 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Table C

(Drugs)

headings headings including rabies immunological (150 IU per ml) (Human)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 329

(xxxii).

330 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(xlvii). Leuprorelin

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 331 S No Description PCT Code Customs duty (%)

(1) (2) (3) (4) 20 All medicines of Cardiac. An illustrative list is given below, namely:- 3004.9099 0% (i). Abeiximab (ii). Adenosine (iii). Contrast Media for angiography MRI (lopamidol and lohexol Inj. and etc.) (iv). Dopamine/Dobutamiune (v). Glyceryltrinitrate infusion or tablets (vi). Isosorbid Injection 8 (Mono/dinityrate) (vii). Heparin (viii). Lopromide (Ultravist) (ix). Nitroglycerine spray (x). Nitroglycerin tablets (xi). Streptokinase (xii). Sodium AmidotrizoateMeglumine Amidotrizoate (Urograffin) (xiii). Reteplase (Thrombolytic treatment of suspected myocardial infarction) (xiv). Urokinase 21 All medicines for HIV/AIDS. An illustrative list is given below, 3004.9099 0% (i). Atazanavir (ii). Darunavir (iii). Diadanosine (iv). Efavirenz (v). Indinavir (vi). Lamivuldine (vii). Lopinavir (viii). Navirapine (ix). Nelfinavir (x). Ritonavir (xi). Saquinavir (xii). Stavudine (xiii). Zaduvidine (xiv). Zalcitabine 22 All medicines for thalassaemia. An illustrative list is given 3004.9099 0% below, namely:- (i). Deferasirox (ii). Defriprone (iii). DesferrioxamineMesylate

332 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Hemodialysis solution/ concentrate and Peritoneal dialysis solution/concentrate, List of drugs is given below, namely:- (i). Azathioprin (ii). Basilliximab (iii). Cyclosporine (iv). Daclizumab (v). Everolimus (vi). Muromonab-CB3 (vii). Mycophenolic acid (viii). Mycophenolic acid and its salts only)

Table D

(Packing Materials/Raw Materials for Packing/Bandages)

without dessicant) indicating particulars of registered drug and manufacturer (Pharmaceutical grade) shapes of plastic (Pharmaceutical grade)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 333

(ii). Printed viskerings (Pharmaceutical grade) (Pharmaceutical grade)

(ii) 20 mm and 32 mm Rubber stopper for injections (Pharmaceutical grade) grade)

(ii) Cold seal coated paper (Pharmaceutical grade) (Pharmaceutical grade)

(ii) Glassine sleeve (Pharmaceutical grade) 5603.9300 (Pharmaceutical grade) aluminium seals.

(ii) Neutral glass vials 1-2 ml U.S.P-1.

(iii) Moulded glass vials U.S.P. Type III (for antibiotics Inj-powder).

(iv) Glass bottle USP type I.

334 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(v) Neutral, clear glass, USP type I (pre- sterilized) close mouth.

(vi) Mouldedglass vials (Pharmaceutical grade) monomer resin on one side and vinyl coating on the other side 7607.2000 indicating particulars of drugs and manufacturers (Pharmaceutical grade).

(ii) Aluminum foil printed, indicating particulars of drugs and manufacturers in rolls for wrapping.

(iii) Printed Aluminium Foil for Sachet/I.V. Infusion Bag]

(iv) Printed Alu+Alu-Cold forming Aluminium Foil bearing the particulars of drugs and manufacturers Pharmaceutical grade].

(v) Aluminium Foil coated with nucryl resin Top and bottom

(vi) Printed Aluminium Bag for I.V. Solutions/Infusion (ii). Rubber plug tear off seal. (iii). Closing lid (aluminium A1, High density polyethylene/polypropylene) (Pharmaceutical Grade)

(ii) Tear off aluminium seals for injectables.

(iii) Flip off seals for injectable vials.

(iv) Rubber plug with Tear off seal.

(v) Closing lid (Aluminium A1. High density polyethylene/polypropylene) (Pharmaceutical grade) (Pharmaceutical grade)

Table E

(Diagnostic Kits/Equipment)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 335

336 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

PART-III

Raw Materials/Inputs for Poultry and Textile Sector; Other Goods

The imports under this part shall be subject to following conditions, besides the conditions specified in the Table given below namely:- the case may be, companies shall furnish all relevant information as detailed in the table below on line to the Customs Computerized password thereof, namely:-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 337

case of imported goods specified against serial numbers 24 of Table; specified against serial number 26 of Table; goods, specified against serial number 15 and 20 of Table; Pakistan Customs Computerized System where operational, and through a normal hard copy in the Collectorates/Custom-stations, operational as yet. Director Reforms and Automation or any other authorized officer goods under this notification in the Customs Computerized System on daily basis, and the data obtained from the Custom-stations, which have not yet been computerized, on weekly basis. Table

stock of Gallus domesticus (chicken) 4 Fresh and Dry Fruits from 08.00 10% Of Afghanistan origin and imported from 5 Spices (Mixtures referred to 0910.9100 11% If imported by units certified by Ministry of be vertically integrated poultry processing added chicken products 7 Sunflower seeds 1206.0000 0% For sowing purpose only as certified by Ministry of National Food Security and Research.

338 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

10 Carrageenan Food Gel 1302.3900 11% If imported by units certified by Ministry of National Food Security and Research to be vertically integrated poultry processing added chicken products. 1701.1400 12 Beet Sugar 15 Mixes and doughs for the 1901.2000 11% If imported by units certified by Ministry of preparation of bakers’ wares National Food Security and Research to of heading 19.05 be vertically integrated poultry processing added chicken products. therefor, mixed condiments and mixed seasonings Micro- nutrients (food grade) 24 Cattle Feed Premix 2309.9000 5% This facility shall be available for dairy Ministry of National Food Security and Research. (coccidiostats) 29 Calf Milk 2309.9000 10% This facility shall be available for dairy Ministry of National Food Security and Research. manufacturers of poultry feed Vitamin premix Vitamin B12 (feed grade) Vitamin H2(feed grade)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 339

31 Unground 2510.1000 0% If imported by the Phosphatic Fertilizer Industries. 32 Chrysotile Asbestos 2524.9000 15% If imported by the manufacturers of Powder Coatings subject to annual quota determination by the Input Output Co- efficient Organization (IOCO). 33 Phosphoric acid 2809.2010 0% If imported by the Phosphatic Fertilizer Industries. 34 Ethylene 2901.2100 0% If imported by industrial consumers for self-consumption 35 (i) Para xylene 2902.4300 0% If imported by M/s. Lotte Chemical Pakistan Ltd. 2811.1990 36 Ethylene Dichloride 2903.1500 0% If imported by industrial consumers for self-consumption (MEG) 40 Paprika Liquid 3203.0090 11% If imported by units certified by Ministry of National Food Security and Research to be vertically integrated poultry processing added chicken products. 42 Chilli Extract 3302.1090 3% If imported by units certified by Ministry of National Food Security and Research to be vertically integrated poultry processing added chicken products. 43 Fatty Alcohol Ethoxylate 3402.1300 5% If imported by manufacturers of Sodium Lauryl Ether Sulphate, registered under the Sales Tax Act, 1990. 44 (i). Adhesives based on 3506.9190 11% If imported by the manufacturers of polymers or rubbers Diapers registered under the Sales Tax (ii). Hot melt adhesives goods are not manufactured locally. the Agriculture Pesticides Ordinance, 1971 products and plant growth regulators

340 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

products and plant growth regulators 3907.6920 52 (i) Polyester Resin 3907.9900 10% If imported by the manufacturers of annual quota determination by the IOCO. -6, 9, -6, 10 or -6, 12 form isocyanate) (crude MDI, polymeric MDI) 56 Pre-laminated Tape 3919.1090 16% If imported by the manufacturers of Diapers registered under the Sales Tax goods are not manufactured locally. 3920.9900 60 Film of ethylene 3920.1000 16% If imported by a Sales Tax registered manufacturer of aseptic plastic packages meant for liquid foods, subject to quota determination by IOCO 61 Plastic Film (Medical grade) 3920.2040 10% If imported by the manufacturers of 3921.9090 registered under the Sales Tax Act, 1990 determination by the IOCO. 62 Uncoated Film of Poly 3920.6200 11% If imported by the manufacturers of Sales Tax Act, 1990 subject to annual quota determination by the IOCO. 63 Perforated Poly Film 3920.9900 16% If imported by the manufacturers of goods are not manufactured locally.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 341

(excluding 4103.3000) wet- blue) 4106.2100 69 Blister Paper 4802.6990 10% If imported by the manufacturers of I.V. Canola registered under the Sales Tax Act, 1990 and subject to annual quota determination by the IOCO. 70 Uncoated paper and 4805.9290 15% If imported by the Liquid food packaging under the Sales Tax Act, 1990, and subject to annual quota determination by the IOCO. polyamides untwisted or with a twist not exceeding 120 turns per meter polymers 2.22 decitex 88 Non-wovens, whether or not 5603.1100 11% If imported by the manufacturers of

342 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

goods are not manufactured locally. 6001.2290 93 Carbon steel strips of 7226.9200 5% If imported by manufacturers of shaving determination by the Input Output Co- efficient Organization (IOCO). 94 Bicycle Chain Parts 7315.1990 15% If imported by Bicycle chain manufacturers registered under the Sales Tax Act, 1990 as per quota determined by IOCO. 95 Aluminium Wire not alloyed 7605.1900 11% If imported by the manufacturers of Sales Tax Act, 1990 subject to annual quota determination by the IOCO. 96 (i) Coils of aluminium 7606.9290 5% If imported by registered local 97 CKD kits for compression- 8408.9000 3% This concession is only available to those engines. 98 Permanent magnets of 8505.1100 0% If imported by local manufacturers of DC determination by IOCO. 101 Cellular mobile phones in 8517.1211 0% i. If imported by local assemblers/ determination by the Input Output Co-efficient Organization (IOCO). certificate from PTA. shall furnish consignment wise NOC from PTA.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 343

routing apparatus 8517.6290

insertion of electric and electronic apparatus

104 (i). Electronic integrated 8542.3900 0% If imported by SIM and Smart Card circuits (SIM Chip) manufacturers registered under Sales Tax Act, 1990, as per quota determined SRO 565(I) /2006.

for dye bonding of chip

(PVC) Rigid Film

film, laminated 105 Ships and other floating 8901.1000 0% The exemption shall be available up to 8901.2000 8905.1000 chargeable. 8905.2000 8905.9000 8906.1000 8906.9000 8907.9000 106 Defence stores, excluding 93.00 & 15% If imported by the Federal Government foreign exchange allocation or otherwise. 107 (i) Paper having 4802.5510 0% (i) If importedby a Federal or in 23X36 inches or 20X30 inches sheets for printing of Holy Quran; and

344 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

108 (i) Cable filling/flooding 3824.9999 5% If imported by a Sales Tax registered

(iii) Fiber reinforced 3916.9000 plastic/glass reinforced

(iv) Water blocking/

swelling tape 5604.9000 9001.1000 109 (i) Multi-ply (clay coated 4810.9200 15% If imported by a Sales Tax registered

(ii) Aluminum foil (rolled but not further worked) battery (Li-Fe-PO4) diapers/sanitary napkins registered under ethylene

than 25 g/m2 than 70 g/m2 70 g/m2 but not more than 150 g/m2 112 Other 1901.9090 5% Imports by manufacturers of infant formula milk, registered under the Sales Tax Act, 1990, subject to annual quota (IOCO). 113 (i) Dextrose 1702.3000 0% If imported by manufacturers of Sales Tax Act, 1990, subject to annual pharma grade

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 345

quota determination by the Input Output pharma grade Co-efficient Organization (IOCO). Pharma grade pharma grade pharma grade 114 (i) Aluminum sheets & 7606.1100 5% If imported by manufacturers of photo 7606.9190 sensitized printing plate, registered under

(ii) Aluminum foil 7607.1990 annual quota determination by the Input Output Co-efficient Organization (IOCO). 115 AKD wax 3809.9200 5% If imported by manufacturers of Paper sizing agents, registered under the Sales Tax Act, 1990, subject to annual quota determination by the Input Output Co- efficient Organization (IOCO). 116 (i) Refrigerant gas R-290 2711.1200 0% If imported by manufacturers of Home (propane) Appliances, registered under the Sales Tax Act, 1990, subject to annual quota determination by the Input Output Co- Isobutane R-600 gas grooved stucco hole) manufacturing TV panels (LCD, LED, OLED, HDI etc.) 117 Base oil 2710.1993 0% If imported by manufacturers of coning registered under the Sales Tax Act, 1990, subject to annual quota determination by the Input Output Co-efficient Organization (IOCO). 118. CNG vehicle conversion 8409.9191 5% Brands of kits approved by OGRA, if

346 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

PART- IV

Imports of Machinery and Equipment for Textile Sector

TABLE

8443.1951 0% imported by Textile industrial units registered with Ministry of Textile Industry

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 347

Explanation:-For the purpose of this Part the expression “excluding those manufactured locally” means the goods which are not included in the list of locally manufactured goods specified in General Order issued by the Federal Board of Revenue or as the case may be, certified as such by the Engineering Development Board.

Part-V

Import of Automotive Vehicles (CBUs) Under Automotive Development Policy (ADP) 2016-21

TABLE

but not exceeding 75kW 8701.9320 8701.9400 8701.9500

348 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

8702.2090 8702.3090 8704.2294 8704.2340 8704.3240

PART-VI

Imports of Aviation Related Goods i.e. Aircrafts and Parts etc. by Airline Companies/Industry under National Aviation Policy 2015

Note:-For the purposes of this Part, the following conditions shall apply besides the conditions as specified in column (5) of the Table below:- against a specific user ID and password obtained under section computerized Collectorates or Customs stations where the Pakistan Reforms and Automation or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis; the Aviation Division, Government of Pakistan to the effect that the intending importer is operating in the country or intends to operate in the county in the airline sector; Division, Government of Pakistan in line with Policy Framework approved by the Government of Pakistan; company shall furnish an undertaking to the customs authority at

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 349

the time of import that the goods imported shall be used for the purpose as defined/notified by the Aviation Division, Government of Pakistan under the Aviation Policy; and Customs shall initiate proceedings for recovery of duty and taxes under the relevant laws. TABLE

Aircraft 8802.4000 0% Whether imported or acquired on wet or dry lease. In case of M/s Pakistan International Airlines Corporation this exemption shall be admissible on and from the 19th March, 2015. 2. Spare parts Respective 0% For use in aircraft, trainer aircraft and 3. Maintenance Kits Respective 0% For use in trainer aircraft (8802.2000 & 4. Machinery, equipment & Respective 0% For setting up Maintenance, Repair & recognized by Aviation Division. 5. Machinery, equipment, Respective 0% On one time basis for exclusive use of New/ 6. Aviation simulators Respective 0% On one time basis for aircrafts by airline

PART-VII

Miscellaneous

Table-A

350 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Beans of the species Vignamungo (L.)Hepper or Vignaradiata (L.)Wilczek Broad beans (Viciafaba var. major) and horse beans (Viciafaba var. equina, Viciafabavar.minor)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 351

an apparent specific gravity of 1 or less. Slate, whether or not roughly trimmed or merely cut, by sawing or shape.

352 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Mixtures of ammonium nitrate with calcium carbonate or other inorganic non fertilising substances Mixtures of urea and ammonium nitrate in aqueous or ammoniacal solution 3103.1100 3103.1900 Goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg elements nitrogen, phosphorus and potassium orthophosphate (diammonium phosphate)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 353

Mineral or chemical fertilisers containing the two fertilising elements phosphorus and potassium wet salted or otherwise preserved

354 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

whether or not split, other than leather of heading 41.14.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 355

Table-B

or other sweetening matter. primary forms registered 3907.6910 manufacturers of film and yarn from PET. newspaper or periodical publishers certified by the All Pakistan Newspaper Society (APNS). 87.03 and vehicles of sub-headings 8703.2113, 8703.2193, 8703.2195, 8703.2240, 8703.2323, 8703.3223, 8704.2190, 8704.3130, 8704.3190 (cut to size and shaped)

356 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

and vehicles of sub-headings 8703.2113, 8703.2193, 8703.2195, 8703.2240,8703.2323, 8703.3223, 8704.2190, 8704.3130, 8704.3190 (cut to size and shaped) m2 steel mm forms; semi- finished products of other alloy steel forged cold- formed or cold- finished

Table-C

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 357

thereon cadmium compounds (slips) and similar preparations Of a kind used in the leather or like industries Of a kind used in the leather or like industries including fat liquors industries Of a kind used in the leather or like industries plastics cotton Containing by weight more than 50 % of these products drinks

358 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I 42. Other 8501.4090 16 Nil 43. Other 9032.1090 16 Nil 44. Of plastics, not covered with textile 9606.2100 16 Nil material 45. Button blanks 9606.3020 16 Nil 46. Fitted with chain scoops of base metal 9607.1100 16 Nil 47. Other 9607.1900 16 Nil” ***** TAHIR HUSSAIN, Secretary. _______________________________________________________________ PRINTED BY THE MANAGER, PRINTING CORPORATION OF PAKISTAN PRESS, ISLAMABAD. PUBLISHED BY THE DEPUTY CONTROLLER, STATIONERY AND FORMS, UNIVERSITY ROAD, KARACHI.

108B. Transactions under dealership arrangements

(1) Where a person supplies products listed in the Third Schedule to the Sales Tax Act, 1990 or any other products as prescribed by the Board, under a dealership arrangement with the dealers who are not registered under the Sales Tax Act, 1990 and are not appearing in the active taxpayers’ list under this Ordinance, an amount equal to seventy-five percent of the dealer’s margin shall be added to the income of the person making such supplies.

(2) For the purposes of operation of this section, ten percent of the sale price of the manufacturer shall be treated as dealers margin.”;

(21) in section 111, in sub-section (4),-

(a) in clause (a), for the word “ten”, the word “five” shall be substituted; and

(b) clause (c) shall be omitted;

(22) in section 114, in sub-section (1), in clause (b), in sub-clause (iii), for the words “two hundred and fifty”, the words “five hundred” shall be substituted;

(23) in section 118, in sub-section (3), in clause (a), for the expression “31st day of August”, the expression “30th day of September” shall be substituted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 177

(24) after the omitted section 120A, the following new section shall be inserted, namely:- “120B. Restriction of proceedings.-(1) Where any person entitled to declare undisclosed assets, undisclosed expenditure and undisclosed sales under the Assets Declaration Act, 2019 declares such assets, expenditures or sales to pay tax, no proceedings shall be undertaken under this Ordinance in respect of such declaration.

(2) Notwithstanding anything contained in any other law, for the time being in force, sub-section (3) of section 216, except the provisions of clauses (a) and (g) of sub-section (3) of section 216, particulars of the persons making declaration under the Assets Declaration Act, 2019 or any information received in any declaration made under the said Act shall be confidential.”;

(25) in section 130, for sub-sections (1) and (2), the following shall be substituted, namely:- “(1) There shall be established an Appellate Tribunal to be called the Appellate Tribunal Inland Revenue to exercise the powers and perform the functions conferred on the Appellate Inland Revenue tribunal by this Ordinance,

(2) The Inland Revenue Appellate Tribunal shall consist of a chairman and such other judicial and accountant members as are appointed in such numbers and in the manner as the Prime Minister may prescribe by the rules.”;

(26) in section 134A, in sub-section (2), in clause (ii),-

(a) in sub-clause (a),-

(i) the word “senior”, wherever occurring, shall be omitted;

(ii) after the word “accountants”, the expression “, cost and management accountants” shall be inserted; and

(iii) after the word “having”, the words “minimum ten years” shall be inserted;

(b) in sub-clause (b), in the proviso, after the word “Accountant”, wherever occurring, the words “or cost and management accountant” shall be inserted;

178 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(27) in section 139, sub-section (5) shall be re-numbered as sub-section

(7) and after sub-section (4), the following new sub-sections shall be inserted, namely:- “(5) Notwithstanding anything contained in any other law, for the time being in force, where any tax payable by an association of persons in respect of any tax year cannot be recovered from the association of persons, every person who was, at any time in that tax year, a member of the association of persons, shall be jointly and severally liable for payment of the tax due by the association of persons.

(6) Any member who pays tax under sub-section (5) shall be entitled to recover the tax paid from the association of persons or a share of the tax from any other member.”;

(28) in section 145, after sub-section (4), the following new sub-section shall be added, namely:- “(5) Notwithstanding anything contained in any other law, for the time being in force, where on the basis of information received from any offshore jurisdiction, the Commissioner has reason to believe that such person who is likely to leave Pakistan may be involved in offshore tax evasion or such person is about to dispose of any such asset, the Commissioner may freeze any domestic asset of the person including any asset beneficially owned by the person for a period of one hundred and twenty days or till the finalization of proceedings including but not limited to recovery proceedings under this Ordinance whichever is earlier.”;

(29) in section 147A, in sub-section (8), for the words “who was filer”, the words “whose name was appearing in the active taxpayers’ list” shall be substituted;

(30) in section 148,- (A) in sub-section (7),-

(a) for the words “a final” the word “minimum” shall be substituted;

(b) the expression “except as provided under sub-section (8)” shall be omitted; and

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 179 (B) in sub-section (8A), for the word “final”, the word “minimum” shall be substituted;

(31) in section 151, in sub-section (3), for the word, “final” the word, “minimum” shall be substituted;

(32) in section 152,- (A) in sub-section (1B), for the colon, a full stop shall be substituted and thereafter the proviso shall be omitted; (B) for the word, “final”, wherever occurring, the word, “minimum” shall be substituted; (C) in sub-section (2), after the expression “(1AAA)”, the expression “,(1C)” shall be inserted; (D) in sub-section (2B), the expression “and sub-section (4A)” shall be omitted; (E) in sub-section (4A), for the word “adjustable”, the words “not minimum tax” shall be substituted; (F) after sub-section (4A) “amended as aforesaid”, the following new sub-section shall be inserted, namely:- “(4B) The Commissioner may, in case of payment that constitutes part of an overall arrangement of a cohesive business operation as referred to in paragraph (ii) of sub-clause (g) of clause (41) of section 2, on application made by the person making payment and after making such inquiry, as the Commissioner thinks fit, allow by order in writing, the person to make payment after deduction of tax equal to thirty percent of the tax chargeable on such payment under sub-section (1A): Provided that the credit of the tax so deducted shall be available to the permanent establishment of the non-resident accounting for overall profits arising on the overall cohesive business operation.”;

(33) in section 153,- (A) in sub-section (3),-

180 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(a) for the word “final”, wherever occurring. the word “minimum” shall be substituted;

(b) in clause (a), for the words “be adjustable”, the words “not be minimum tax” shall be substituted;

(c) for clause (b), the following shall be substituted, “(b) tax deductible shall be a minimum tax on transactions referred to in clause (b) of sub-section (1).”;

(d) in clause (d), the expression “with effect from tax year 2013 shall be omitted; and

(e) in clause (e), the expression “with effect from the 1st July, 2016” shall be omitted; (B) in sub-section (4), for the word “adjustable”, the words “not minimum” shall be substituted; (C) sub-section (4A) shall be omitted;

(34) after omitted section 153A, the following new section shall be inserted, namely:- “153B. Payment of royalty to resident persons.-(1) Every person paying an amount of royalty, in full or in part including by way of advance, to a resident person shall deduct tax from the gross amount payable (including Federal excise duty and provincial sales tax, if any) at the rate specified in Division IIIB of Part III of the First Schedule.

(2) The tax deductible under sub-section (1) shall be adjustable.”;

(35) in section 161, after sub-section (2), the following new sub-section shall be added, namely:- “(3) The Commissioner may, after making, or causing to be made, such enquiries as he deems necessary, amend or further amend an order of recovery under sub-section (1), if he considers that the order is erroneous in so far it is prejudicial to the interest of revenue:

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 181 Provided that the order of recovery shall not be amended, unless the person referred to in sub-section (1) has been provided an opportunity of being heard.”;

(36) in section 165, after the expression “Chapter XII”, wherever occurring, the words “or the Tenth Schedule” shall be inserted;

(37) in section 165A, in sub-section (1),- (A) in clause (a), the expression “for filers and non-filers” shall be omitted; and (B) in clause (d),-

(a) the words “one million rupees for filers and” shall be omitted; and

(b) the expression “for non-filers” shall be omitted;

(38) in section 168, in sub-section (3), clauses (a), (b), (c), (d), (h) and

(j) shall be omitted;

(39) in section 169, for sub-section (4), the following shall be substituted, namely:- “(4) Where the tax collected or deducted is final tax under any provision of this Ordinance and hundred percent higher tax rate has been prescribed for the said tax under the Tenth Schedule, the final tax shall be the tax rate prescribed in the First Schedule and the excess tax collected under the Tenth Schedule specified for persons not appearing in the active taxpayers’ list shall be adjustable in case the return is filed before finalization of assessment as provided in rule 4 of the Tenth Schedule.”;

(40) after section 171, the following new section shall be inserted, “171A. Payment of refund through income tax refund bonds.-

(1) Notwithstanding anything contained in sections 170 and 171, the income tax refunds payable under this Ordinance may also be paid through income tax refund bonds to be issued by FBR Refund Settlement Company Limited, in book-entry form through an establishment licensed by the Securities and Exchange Commission of Pakistan as a central depository under the Securities Act, 2015 (III of 2015), in

182 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I lieu of payment to be made through issuance of cheques or bank debit advice.

(2) The Board shall issue a promissory note to FBR Refund Settlement Company Limited, hereinafter referred to as the company, incorporating the details of refund claimants and the amount of refund determined as payable to each for issuance of income tax refund bonds, hereinafter referred to as the bonds, of the same amount.

(3) The bonds shall be issued in values in multiples of one hundred thousand rupees.

(4) The bonds so issued shall have a maturity period of three years and shall bear annual simple profit at ten percent.

(5) The bonds shall be traded freely in the country’s secondary markets.

(6) The bonds shall be approved security for calculating the statutory liquidity reserve. .

(7) The bonds shall be accepted by the banks as collateral.

(8) There shall be no compulsory deduction of Zakat against the bonds and Sahib-e-Nisab may pay Zakat voluntarily according to Shariah.

(9) After period of maturity, the company shall return the promissory note to the Board and the Board shall make the payment of amount due under the bonds, along with profit due, to the bond holders.

(10) The bonds shall be redeemable in the manner as in sub- section (9) before maturity only at the option of the Board along with simple profit payable at the time of redemption in the light of general or specific policy to be formulated by the Board.

(11) The refund under sub-section (1) shall be paid in the aforesaid manner to the claimants who opt for payment in such manner.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 183

(12) The Federal Government may notify procedure to regulate the issuance, redemption and other matters relating to the bonds, as may be required.”;

(41) in section 177,- (A) for sub-section (6), the following shall be substituted, “(6) After completion of the audit, the Commissioner shall, after obtaining taxpayer’s explanation on all the issues raised in the audit, issue an audit report containing audit observations and findings.”; and (B) after sub-section (6), substituted as aforesaid, the following new sub-section shall be inserted, namely:- “(6A) After issuing the audit report, the Commissioner may, if considered necessary, amend the assessment under sub- section (1) or sub-section (4) of section 122, as the case may be, after providing an opportunity of being heard to the taxpayer under sub-section (9) of section 122.”;

(42) after section 181C, the following new section shall be inserted, “181D. Business licence scheme.-Every person engaged in any business, profession or vocation shall be required to obtain and display a business licence as prescribed by the Board.”;

(43) in section 182, in sub-section (1), in the Table, in column(1),- (A) against S.No.1, in column (3),-

(a) for the word “twenty”, wherever occurring, the words, “forty”, shall be substituted; and

(b) after the colon at the end, the following proviso shall be inserted, namely:- “Provided that If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees, the minimum amount of penalty shall be five thousand Rupees.”;

184 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(B) against S. No. 1AA, in column (3), for the figure “20,000”, the figure “100,000” shall be substituted;

(D) against S. No. 6, in column (3), for the word “five”, the word “thirty”, shall be substituted;

(E) against S. No. 11, in column (3), for the words “twenty five”, the word, “fifty”, shall be substituted;

(F) against S. No. 12, in column (3), for the words “twenty five”, the words “one hundred”, shall be substituted;

(G) against S. No 15, in column (3), for the words “twenty five”, the word “forty” shall be substituted; and

(H) after S. No. 20 and entries relating thereto in columns (2), (3) and (4), the following new serial numbers and corresponding entries relating thereto shall be added, namely:-

higher. 22 Where an offshore tax evader Such person shall pay a General whichever is higher. 23 Where in the course of any Such person shall pay a General

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 185

under this Ordinance. 24 Any person who is involved Such person shall pay a General

Reporting Standard Rules in Chapter XIIA of Income Tax Rules, 2002.

186 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I Chapter XIIA of Income Tax the default is redressed.” Rules, 2002. ;

(44) in section 182A, in sub-section (1),- (A) in clause (a), for the expression “; and”, at the end, a colon shall be substituted and thereafter the following new proviso shall be inserted, namely:- “Provided that without prejudice to any other liability under this Ordinance, the person shall be included in the active taxpayers’ list on filing return after the due date, if the person pays surcharge at Rupees-

(i) twenty thousand in case of a company;

(ii) ten thousand in case of an association of persons;

(iii) one thousand in case of an individual.”; (B) in clause (b), for the full stop at the end, a semicolon shall be substituted and thereafter the following new clauses shall be “(c) not be issued refund during the period the person is not included in the active taxpayers’ list; and

(d) not be entitled to additional payment for delayed refund under section 171 and the period the person is not included in the active taxpayers’ list, shall not be counted for computation of additional payment for delayed refund.”;

(45) in section 191, in sub-section (1), after clause (c), the following new clause shall be inserted, namely:- “(ca) furnish particulars or complete or accurate particulars of persons mentioned in sub-section (1) of section 165;”;

(46) after section 192A , the following new section shall be inserted, “192B. Prosecution for concealment of an offshore asset.-(1) Any person who fails to declare an offshore asset to the Commissioner or furnishes inaccurate particulars of an offshore asset and revenue impact of such concealment or

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 187 furnishing of inaccurate particulars is ten million rupees or more shall commit an offence punishable on conviction with imprisonment up to three years or with a fine up to five hundred thousand Rupees or both.”;

(47) after section 195, the following new sections shall be inserted, “195A. Prosecution for non-compliance with notice under section 116A.-Any person who, without reasonable excuse, fails to comply with a notice under sub-section (2) of section 116A; shall commit an offence punishable on conviction with imprisonment up to one year or with a fine up to fifty thousand Rupees or both.

195B. Prosecution for enabling offshore tax evasion

Any enabler who enables, guides or advises any person to design, arrange or manage a transaction or declaration in such a manner which results in offshore tax evasion, shall commit an offence punishable on conviction with imprisonment for a term not exceeding seven years or with a fine up to five million Rupees or both.”;

(48) in section 215, in sub-section (1),- (A) the expression “or persons or class of persons (hereinafter called ‘filer’),” shall be omitted; and (B) for the word, “filer” the word, “person” shall be substituted;

(49) in section 216, after sub-section (6A), the following new sub- sections, shall be inserted, namely:- “(6B) Nothing contained in sub-section (1) shall prevent the Board from publishing the names of offshore evaders, in the print and electronic media who have evaded offshore tax equal to or exceeding rupees two and half million Rupees.

(6C) Nothing contained in sub-section (1) shall prevent the Board from publishing the names of offshore tax enablers, in the print and electronic media who have enabled offshore tax evasion.”;

(50) after section 216, amended as aforesaid, the following new section shall be inserted, namely:-

188 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I “216A. Proceedings against authority and persons.-(1) Subject to section 227, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in section 207 and officer of the Directorates General mentioned in Part II and Part III of Chapter XI including any person subordinate to the aforesaid authorities or officers of the Directorates General who willfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

(51) after section 222, the following new section shall be added, “222A. Fee and service charges.-The Federal Government may, by notification in the official Gazette, and subject to such conditions, limitations or restrictions as it may deem fit to impose, levy fee and service charges for valuation or in respect of any other service or control mechanism provided by any formation under the control of the Board, including ventures of public-private partnership at such rates as may be specified in the notification.”;

(52) section 227C shall be omitted;

(53) after section 227C, omitted as aforesaid, the following new section shall be inserted, namely:- “227D. Automated impersonal tax regime.-(1) The Board may design an alternate impersonal taxation regime whereby personal interaction will be minimized.

(2) The Board may, by notification in the official Gazette, prescribe the procedure in this behalf.

(3) This section shall be applicable only for low risk and compliant taxpayers as may be prescribed.”;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 189

(54) in section 230E, in the marginal note, for the word “Tar” the word “Tax” shall be substituted;

(55) in section 230F, sub-section (23) shall be omitted;

(56) after section 230F, amended as aforesaid, the following new sections shall be inserted, namely:- “230G. Directorate General of Special Initiative.-(1) The Directorate General of Special Initiative 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 Special Initiative and its officers; and

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

230H. Directorate General of Valuation

(1) The Directorate General of Valuation 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 Valuation and its officers; and

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

(57) in section 231B, in sub-section (1A), for the expression “non-filer”, the expression “person whose name is not appearing in the active taxpayers’ list” shall be substituted;

(58) in section 233, for the word, “final”, wherever occurring, the word “minimum” shall be substituted;

190 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(59) in section 234A, in sub-section (3), for the word “final” the word “minimum” shall be substituted;

(60) in section 236C, in sub-section (3), for the word “three”, the word “five” shall be substituted;

(61) in section 236P,-

(a) in sub-section (1), for the expression “non-filer”, the expression “person whose name is not appearing in the active taxpayers’ list” shall be substituted; and

(b) in sub-section (2), for the expression “non-filer”, the expression “person whose name is not appearing in the active taxpayers’ list” shall be substituted;

(62) in section 236U, in sub-section (1), for the expression “non-filers”, the expression “a person whose name is not appearing in the active taxpayers’ list” shall be substituted;

(63) section 236W shall be omitted;

(64) in the First Schedule,- (A) in Part I,-

(a) for Division I, the following shall be substituted, “Division I [Rates of Tax for Individuals and Association of Persons]

(1) Subject to clause (2), the rates of tax imposed on income of every individual and association of persons except a salaried individual shall be as set out in the following Table, namely:- TABLE S. No Taxable Income Rate of Tax

(1) (2) (3) 1. Where taxable income does not 0% exceed Rs. 400,000 2. Where taxable income exceeds 5% of the amount exceeding Rs. 400,000 but does not exceed Rs. 400,000 Rs. 600,000

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 191

Where taxable income exceeds Rs. 10,000 plus 10% of the Rs. 1,200,000 4. Where taxable income exceeds Rs. 70,000 plus 15% of the Rs. 2,400,000 5 Where taxable income exceeds Rs. 250,000 plus 20% of the Rs. 3,000,000 6 Where taxable income exceeds Rs. 370,000 plus 25% of the Rs. 4,000,000 7. Where taxable income exceeds Rs. 620,000 plus 30% of the Rs. 6,000,000 8. Where taxable income exceeds Rs. 1,220,000 plus 35% of the

(2) Where the income of an individual chargeable under the head “salary” exceeds seventy-five per cent of his taxable income, the rates of tax to be applied shall be as set out in the following Table, namely:-

TABLE

exceed Rs. 600,000 2. Where taxable income exceeds 5% of the amount exceeding Rs. Rs. 1,200,000 3. Where taxable income exceeds Rs. 30,000 plus 10% of the Rs. 1,800,000 4. Where taxable income exceeds Rs. 90,000 plus 15% of the Rs. 2,500,000 5. Where taxable income exceeds Rs. 195,000 plus 17.5% of the Rs. 3,500,000 6. Where taxable income exceeds Rs. 370,000 plus 20% of the Rs. 5,000,000 7. Where taxable income exceeds Rs. 670,000 plus 22.5% of the Rs. 8,000,000

192 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

Where taxable income exceeds Rs. 1,345,000 plus 25% of the Rs. 12,000,000 9. Where taxable income exceeds Rs. 2,345,000 plus 27.5% of the 10. Where taxable income exceeds Rs. 7,295,000 plus 30% of the 11. Where taxable income exceeds Rs. 13,295,000 plus 32.5% of the 12. Where taxable income exceeds Rs. 21,420,000 plus 35% of the 75,000,000”;

“comma” shall be substituted;

(ii) for the expression “thereafter as set out in the following Table, namely:-”, the expression “29% substituted; and

“Division III

Rate of Dividend Tax

The rate of tax imposed under section 5, on dividend received from a company shall be-

(a) 7.5% in case of dividend paid by Independent Power Purchasers Energy Purchase Agreement and is required to be re-imbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 193

(b) 15% in mutual funds and cases other than those mentioned in clauses (a) and (c).

(c) 25% in case of a person receiving dividend from a company where no tax is payable by such company, due to exemption of income or carry forward of business losses under Part VIII of Chapter III or claim of tax credits under Part X of Chapter III.”;

(d) in Division IIIA, for the Table, the following shall be substituted,

“Table

Rs.5,000,000 does not exceed Rs.25,000,000 does not exceed Rs.36,000,000

(i) against S.No.5, in column (2), after the figure “2,000,000”, the expression “but does not exceed Rs.4,000,000” shall be inserted; and

(ii) after S. No. 5 and entries relating thereto in columns (2) and entries relating thereto shall be inserted, namely:-

“6. Where the gross amount of rent Rs.610,000 plus 25 per cent of 7. Where the gross amount of rent Rs.1,110,000 plus 30 per cent 8. Where the gross amount of rent Rs.1,710,000 plus 35 percent Rs.8,000,000”;

194 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(i) for the Table, excluding the provisos, the following new Table shall be substituted,-

Tax Years 2018, 2019 and 2020 months security is twelve twenty-four months security is twenty - four months or 2013. 1st July, 2013 commodity contracts entered Pakistan Mercantile Exchange

(ii) in the fifth proviso, after the full stop at the end, the following explanation shall be added, namely:- “Explanation.- For removal of doubt, it is clarified that, the provisions of this proviso shall be applicable only in case of a

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 195

scheme.”;

(g) for Division VIII, the following shall be substituted, namely:-

“Division VIII

Tax on Capital Gains on disposal of Immovable Property The rate of tax to be paid under sub-section (1A) of section 37 shall be as follows:-

exceed Rs. 10 million exceed Rs. 15 million and

(h) in Division IX, in the Table, in column (1), against serial numbers respectively be substituted, namely:-

“0.75% 0.25% 0.3% 1.5%”;

(a) for the Table excluding the provisos, the following shall be substituted, namely:-

(i) Industrial undertaking importing 1% of the import value as

196 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

dated the 9th December, 2004; December, 2011 and importing December, 2011; duty, sales tax and federal excise duty 3. Commercial importers covered under 3% of the import value as 1125(I)/2011 dated the 31st December, 2011. manufactured otherwise in Pakistan, as Authority of Pakistan under S. Nos. 1 to 6 to 7

(b) in the first proviso, in clauses (a) and (b), the expression “being a filer;”, wherever occurring, shall be omitted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 197

substituted, namely:-

Agreement and is required to be re-imbursed entity.”;

omitted;

(iii) paragraph (c) and provisos thereafter shall be omitted;

(i) for the figure “10”, the figure “15” shall be substituted;

or profit paid, for non-filers” shall be omitted; and

(iii) for the proviso, the following shall be substituted,

where yield or profit paid is rupees five hundred thousand rupees or less.”;

filer and 13% in case the person is a non-filer” shall be omitted;

198 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

company is a filer and 7% if the company is a non-filer” shall be omitted; and

person is a filer and 7.75% if the person is a non-filer” shall be omitted;

company is a filer and 14% if the company is a non-filer” shall be omitted; and

person a filer and 17.5% if the person is a non-filer” shall be omitted;

shall be omitted; and

non filer,” shall be omitted;

company is a filer and 8% if the company is a non-filer” shall be omitted; and

person is a filer and 9% if the person is a non-filer” shall be omitted;

(ii) for clause (2), the following shall be substituted,

section (1) of section 153 shall be-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 199

forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services as defined in clause (133) of Part I of the Second Schedule, tracking than by print or electronic media), share registrar services, engineering services, maintenance services, services rendered Limited inspection, certification, testing and training services;

services other than sub-clause (i),-

gross amount payable;

gross amount payable; and

payable;”;

“, if the company is a filer and 14% if the company is a non-filer” shall be omitted; and

“, if the person is a filer and 15% if the person is a non filer” shall be omitted;

200 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(f) after the omitted Division IIIA, the following new Division shall be inserted, namely:-

“Division IIIB Royalty paid to resident persons

The rate of tax to be deducted under section 153B shall be 15% of the gross amount payable.”;

(g) in Division V,-

(I) in clause (a), in the Table, in column (1),-

exceed Rs.4,000,000” shall be inserted;

columns (2) and (3), the following new serial numbers and corresponding entries relating thereto shall be added, namely:-

amount exceeding Rs. 8,000,000”; and

(II) in clause (b), the expression “for filers and 17.5% of the gross amount of rent for non-filers” shall be omitted;

(h) in Division VI, in clause (1), the expression “for filers and 25% of the gross amount paid for non-filers” shall be omitted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 201

(i) in Division VIA, the expression “for filers and 17.5% for non-filers” shall be omitted; and

(j) in Division VIB, the expression “for filers and six per cent for non-filers” shall be omitted; and

(D) in Part IV,-

(a) for Division II, the following shall be substituted,

“Division II

BROKERAGE AND COMMISSION

The rate of tax for deduction or collection under section 233 shall be as set out in the following Table, namely:-

TABLE

than Rs. 0.5 million per annum above

(b) in Division III,-

(i) in clause (1), the expression “for filer and four rupees per kilogram of the laden weight for non- filer” shall be omitted;

(ii) in clause (2), for the Table, the following shall be substituted, namely:-

“S. annum than ten persons.

202 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

than twenty persons.

(iii) for clause (3), the following shall be substituted,

(iv) in clause (4), for the Table, the following shall be substituted, namely:-

(c) in Division VI, for the expression “non-filer”, the words “the person whose name is not appearing in the active taxpayers’ list” shall be substituted;

(d) in Division VIA, for the expression “non-filer”, the words “the person whose name is not appearing in the active taxpayers’ list” shall be substituted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 203

of section 231B shall be as set out in the following Table:-

TABLE

(ii) for clause (2), excluding the proviso, the following shall be substituted, namely:-

section 231B shall be as follows:-

204 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(f) in Division VIII, the expression “for filers and 15% of the gross sale price of any property or goods sold by auction for non-filers” shall be omitted;

(g) in Division X, the expression “for filers and 2 % of the filers” shall be omitted;

(h) for Division XIV, the following shall be substituted,

“Division XIV

wholesalers

The rate of collection of tax under section 236G shall be as set out in the following table, namely:-

TABLE

No.

(i) for Division XV, the following shall be substituted,

“Division XV

Advance tax on sale to retailers

gross amount of sales shall be as set out in the following table, namely:-

TABLE

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 205

(j) in Division XVA, the expression “for filers and 1% for non-filers” shall be omitted;

(k) for Division XVII, the following shall be substituted, “Division XVII Advance tax on dealers, commission agents and arhatis, etc. The amount of collection of tax under section 236J shall be as set out in the following Table, namely:- TABLE Group or Class Amount of tax (per annum) Group or Class A Rs. 100,000 Group or Class B Rs. 75,000 Group or Class C Rs. 50,000 Any other category Rs. 50,000”;

(l) for Division XVIII, the following shall be substituted, “Division XVIII Advance tax on purchase of immovable property The rate of tax to be collected under section 236K shall be 1% of the fair market value.”;

(m) in Division XXI, for the expression “non-filer”, the words “persons who are not appearing in the active taxpayers’ list” shall be substituted;

(n) in Division XXV, for the expression “non-filer”, the words “persons who are not appearing in the active taxpayers’ list” shall be substituted;

(o) in Division XXVI, for the expression “non-filers and 0% for filers”, the words “ persons who are not appearing in the active taxpayers’ list” shall be substituted; and

206 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(p) in Division, XXVII, the expression “for filers and 3% for non-filers” shall be omitted;

commas “internal security allowance, compensation in lieu of bearer allowance,” shall be inserted;

(b) in clause (61), after sub-clause (liv), the following new clauses shall be added, namely:-

(d) in clause (99A), in the proviso, after the figure “2020” at the end, a colon shall be added and thereafter a new proviso shall be added, namely:-

sale of immovable property to a rental REIT scheme shall be exempt up to the 30th day of June, 2021.” ;

(d) in clause (103C), for the words “has availed”, the words “is eligible for” shall be substituted.;

(e) after clause (114), the following new clause shall be

“(114B) Profit and gains accruing to persons mentioned in

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 207 Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of services rendered by the Shaheed or the person who dies in service.”;

(f) after the omitted clause (145), the following new clause shall be added, namely:- “(145A) Any income which was not chargeable to tax prior to the commencement of the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018) of any individual domiciled or company and association of persons resident in the Tribal Areas forming part of the Provinces of Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Constitution with effect from the 1st day of June, 2018 to the 30th day of June, 2023 (both days inclusive); and (B) in Part II, after omitted clause (24B), the following new clauses shall be inserted, namely:- “(24C) The rate of tax under clause (a) of sub-section (1) of section 153 in case of dealers and sub-dealers of sugar, cement and edible oil, as recipient of the payment, shall be 0.25% of the gross amount of payments.

(24D) The rate of minimum tax under sub-section (1) of section 113 in case of dealers and sub-dealers of sugar, cement and edible oil shall be 0.25% subject to the condition that the names of such dealers and sub-dealers are appearing on the active taxpayers’ lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001 (XLIX of 2001).”; (C) in Part III,-

(a) in clause (2),-

(i) the words “training and” shall be omitted;

(ii) for the figure “40”, the figure “25” shall be substituted; and

208 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(iii) for the full stop at the end, a colon shall be proviso shall be inserted, namely:-

teachers of medical profession who derive income from private medical practice or who receive share of consideration received from patients.”;

(b) after clause (9), the following new clause shall be

percent on the first sale of immovable property acquired or allotted to ex-servicemen and serving allotment authority.”;

(a) in clause (43E), for the figure “2.5”, the figure “3” shall be substituted;

(b) after clause (60D), the following new clause shall be inserted, namely:-

mobile phones brought in personal baggage under the Baggage Rules, 2006.”;

(f) after clause (109), the following new clause shall be added, namely;-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 209 “(109A) The provisions of sections in Division III of Part V of Chapter X and Chapter XII of this Ordinance for deduction or collection of withholding tax which were not applicable prior to commencement of the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018) shall not apply to individual domiciled or company and association of persons resident in the Tribal Areas forming part of the Provinces of Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Constitution with effect from the 1st day of June, 2018 to the 30th day of June, 2023 (both days inclusive).”;

(66) in the Third Schedule, in Part II, in paragraph (1), the expression “and 15% for buildings” shall be omitted;

(67) in the Fourth Schedule, after rule 6D, the following new rule shall be inserted, namely:- “6E. Notwithstanding anything contained in this Schedule, the Commissioner shall be authorized to examine and amend the amount of income as disclosed in the financial statement presented to the Securities and Exchange Commission of Pakistan with respect to commission paid and claimed for losses.”;

(68) in the Seventh Schedule,- (A) in rule 1,-

(a) in clause (c), after the second proviso, the following explanation shall be added, namely:- “Explanation.-For removal of doubt, it is clarified that-

(i) provision for advances and off balance sheet items allowed under this clause, at the rate of 1 percent or 5 percent, as the case may be, shall be exclusive of reversals of such provisions;

(ii) reversal of “bad debts” classified as “doubtful” or “ loss” are taxable as the respective provisions have been allowed under this clause; and

210 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I

(iii) with effect from tax year 2020 and onward; reversal of “bad debts” classified as “ loss” are taxable as the respective provisions have been allowed under this clause.”

(b) in clause (d), after the expression, “sub-standard”, the expression “or doubtful” shall be inserted;

(d) after clause (h), the following explanation shall be “Explanation.-For removal of doubt, it is clarified that nothing contained in this Schedule shall be so construed as to restrict power of Commissioner, while conducting audit of the income tax affairs under section 177, to call for record or such other information and documents as he may deem appropriate in order to examine accounts and records to conduct enquiry into expenditure, income, assets and liabilities of a banking company and all provisions of this Ordinance shall be applicable accordingly.”; (B) after omitted rule 6B, the following new rule shall be inserted, namely:- “6C. Enhanced rate of tax on taxable income from Federal Government securities.-(1) The taxable income arising from additional income earned from additional investment in Federal Government securities for the tax years 2020 and onwards, shall be taxed at the rate of 37.5% instead of the rate provided in Division II of Part I of the First Schedule.

(2) A banking company shall furnish a certificate from external auditor along with accounts while e-filing return of Income certifying the amount of the money invested in Federal Government securities in preceding tax year, additional investments made for the tax year and mark-up income earned from the additional investments for the tax year.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 211

(3) Notwithstanding anything contained in this Ordinance, the Commissioner may require the banking company to furnish details of the investments in Federal Government securities to determine the applicability of the enhanced rate of tax.

(4) “Additional income earned” means mark-up income earned from additional investment in Federal Government securities by the bank for the tax year.

(5) “Additional investments” means average investment made in Federal Government securities by the bank during the tax year, in addition to the average investments held during the tax year 2019.

(6) The taxable income arising from additional investment under sub-rule (1) shall be determined according to the following formula, namely:- Taxable income subject to enhanced rate of tax = A x B/C Where- A. is taxable income of the banking company; B is mark up income earned from the additional investment for the tax year; and C is the total of the mark-up income and non-mark-up income of the banking company as per accounts.”; (C) in rule (7C), for full stop at the end a colon shall be substituted and thereafter the following proviso shall be “Provided that brought forward losses, if any, shall be excluded from income computed under this Schedule for the purpose of section 4B of this Ordinance.”; and (D) in rule 7D, in sub-rule (1), the words “interest income” shall be omitted; and

(69) after the Ninth Schedule, the following new Schedule shall be

212 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2019 [PART I “THE TENTH SCHEDULE (See section 100BA) RULES FOR PERSONS NOT APPEARING IN THE ACTIVE TAXPAYERS’ LIST