5 of 92021-06-30

Finance Act, as published 30 June 2021

This is the Finance Act as it stood on 30 June 2021. It runs to 230 pages and contains 17 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every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2021 rather than as originally enacted.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 44,297 words across 17 sections.

What changed since the previous version

Against the version published 30 June 2020, this one has 13 new sections and 3 that no longer appear.

New in this version

section 1, Short title and commencement
section 5, Amendments of the Sales Tax Act, 1990
section 7, Amendments of Income Tax Ordinance, 2001 (XLIX of 2001)
section 8, Tax on Supply of Goods
section 9, Provisions of Ordinance to apply
section 65G, Tax credit for specified industrial undertakings
section 203C, Procedure to be followed on arrest of a person
section 203D, Special Judges
section 203E, Cognizance of offences by Special Judges
section 203F, Special Judge, etc. to have exclusive jurisdiction
section 203G, Provisions of Code of Criminal Procedure, 1898, to apply
section 203H, Transfer of cases
and 1 more

No longer present

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

section 10, R€p€al
section 40A, Policy and administratior
section 408, Recoyery of non tax revenue by Commissioner (IDland ReveEue)

The source file


File name	`2021751375221891FinanceAct2021.pdf`
Pages	230
Size	6.10 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	5 of 9

SHA-256 of the source PDF:

c6e013950ca0e4016a39bfe0161d7cd448685fa1bc635b9fa02db5661716e6aa

Checking that value against the file you download confirms it is the same document these figures came from.

A note on these figures

Counts here are produced by software reading the PDF, not compiled by hand. The same method is applied to every document, which makes comparisons between versions meaningful, but a section with unusual formatting can be missed. Treat them as close measurements and the official document as the authority.

This is information, not legal or tax advice. Qanoon Digest is independent and not affiliated with the Federal Board of Revenue or the Government of Pakistan.

The full text of this version

All 17 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 shall be called the Finance Act, 2021.

(2) It shall, unless specified otherwise, come into force on the first day of July, 2021. These rules shall apply to small and medium enterprises as defined in Clause (59A) of Section 2 of the Ordinance.

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

In the Stamp Act, 1899 (II of 1899), the following further amendments shall be made,

(1) in section 2,-

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

(b) after clause (11), amended as aforesaid, the following clause

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

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 211

(2) In section 10,-

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

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

(3) After section 32, the following section 32A shall be inserted, “32A. Certificate of designated officer.-An officer designated by the Government shall, by notification in the official Gazette, issue a certificate as to genuineness or otherwise of an e-stamp for the purpose of evidence in a legal proceedings”. Small and medium enterprise shall be required to register with FBR on its Iris web portal or Small and Medium Enterprises Development Authority on its SME registration portal (SMERP).

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

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

(1) in section 2,-

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

(b) after clause (kkb), the following new clause shall be added, “(kkc) “electronic assessment” means assessment of a goods declaration in Customs Computerized System by an officer of Customs or by the computerized system according to the selectivity criteria;”;

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

212 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

(2) after section 3CCA, the following new section shall be added, “3CCB. Directorate General of National Nuclear Detection Architecture.-The Directorate General of National Nuclear Detection Architecture shall consist of a Director General and as many Deputy Director Generals, Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.”;

(3) after section 3CCB, the following new section shall be added, “3CCC. Directorate General of Marine.-The Directorate General of Marine shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.”;

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

(2) Every application for a licence for a public warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction: Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 213 opportunity of showing cause against the proposed cancellation.

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

(5) after section 12, the following new section shall be added, “12A. Power to appoint or licence common warehouses.-

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

(2) Every application for a licence for a common warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction: Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.

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

(6) for section 13, the following shall be substituted, namely:- “13. Power to licence private warehouses.-(1) At any warehousing station, the respective Collector of Customs in his own jurisdiction may, from time to time,

214 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I licence private warehouses wherein dutiable goods may be deposited without payment of customs-duty.

(2) Every application for a licence for a private warehouse shall be made in such form as may be prescribed by the respective Collector of Customs in his own jurisdiction: Provided that where the Customs Computerized System is operational, the application shall be filed to the respective Collector of Customs through the system in the manner as may be prescribed by rules.

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

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

(7) in section 18E, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be “Provided further that the Board may constitute a committee or a centre for the purpose of settlement of disputes regarding classification of goods and may prescribe rules or procedure for carrying out the purpose of this section.”;

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

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

(10) in section 25A,-

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 215

Collector of Customs on his own motion or” shall be inserted; and

(ii) for the full stop at the end, a colon shall be

determining the customs value under this section, the acclaimed publications, periodicals, bulletins or official websites of manufacturers or indenters of such goods.”;

(b) after sub-section (2), the following new sub-section

“(2A) In case of any conflict in the customs value applicable customs value.”; and

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

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

“25D. Review of the value determined.-Notwithstanding pursuance to a review petition made to him within thirty days from the date of determination by any person or an officer of Customs may rescind or determine the value afresh:

review petition or initiation of proceedings as the case may be.”;

216 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

(14) in section 30, for the first proviso, the following shall be substituted, namely:- “Provided that, where a goods declaration has been manifested in advance of the arrival of the conveyance by which the goods have been imported, the relevant date for the purposes of this section shall be the date on which the goods declaration is manifested under section 79 or section 104, as the case may be, except for those goods declaration in respect of which the rate of duty change after the submission of the goods declaration and before the berthing or cross-over event of the vessel or the vehicle respectively, as the case may be, the relevant date in which case, for the purposes of this section, shall be the date on which the vessel has berthed or the vehicle has crossed-over the border, as the case may be.”;

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

(16) in section 32C, in sub-section (1), for the second proviso, the following shall be substituted, namely:- “Provided further that Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.”;

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 217

(18) in section 45,-

(a) in sub-section (2), for the full stop at the end, a colon shall be substituted and thereafter the following proviso “Provided that before the berthing of the vessel or the cross-over of the vehicle, as the case may be, the person incharge of a conveyance or his duly authorized agent may amend the import manifest subject to the rules notified by the Board.”; and

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

(19) in section 79, in clause (a), the word “and” at the end, shall be omitted and thereafter, the following new clause shall be “(aa) the documents mandatory for assessment of the goods, shall be uploaded by the importer or his agent with the goods declaration, as may be prescribed by the Board; and”;

(20) in section 80, in sub-section (4), for the full stop at the end, a colon shall be substituted and thereafter the following proviso “Provided further that in case of clearance of goods declaration through green channel, the goods may be examined with the prior approval of the Collector of Customs.”;

(21) in section 82, in clause (c), after colon at the end, the following new proviso shall be added, namely:- “Provided that Collector of Customs may direct the importer or in case importer is not traceable, the shipping line to re-export out of Pakistan any goods, banned or restricted through a notification issue by the Federal Government, if the same are not cleared or auctioned within sixty days of the date of their arrival:”;

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

218 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(23) in section 88, for sub-section (5), the following shall be substituted, namely:- “(5) If the quantity or value of any goods has been incorrectly stated in the goods declaration, due to inadvertence or bona fide error, the Collector of Customs may, for reasons to be recorded in writing, direct the correction of the said error.”;

(24) in section 98, in sub-section (1), for clause (a), the following shall be substituted, namely:- “(a) by the Collector of Customs, for a period not exceeding six months; and”;

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

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

(27) in section 155R, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be “Provided that in case where any clerical or typographical error is noted in goods declaration except as provided in section 29 of this Act, the exporter or importer may apply to the concerned officer not below the rank of Assistant Collector for issuance of correction or corrigendum certificate and the concerned officer upon his satisfaction may issue such certificate for subsequent correction in the computerized goods declaration.”;

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

(a) against S.No.1,-

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 219

inside the import container or consignment. violation

thereto in column (1), (2) and (3), shall be inserted,

onwards,

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

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

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

exclusively or wholly for transportation of offending goods under clause (s) of section 2 of this Act, has been seized for the third time, no option to pay fine in lieu of the confiscation shall be given.”;

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

220 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I “Provided further that in cases where in goods are lying at sea-port, airport or dryport, these shall be decided within thirty days of the issuance of show cause notice which can be extended by another fifteen days by Collector of Customs, if required so.”.

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

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 221

(35) in the First Schedule,-

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

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

(36) the Fifth Schedule to the Customs Act, 1969 (IV of 1969), shall be substituted in the manner provided for in the Second Schedule to this Act. There shall be following two categories of small and medium enterprises and tax on their taxable income shall be computed at the tax rates given in the table below, Sr. No. Category Turnover Rates

(1) (2) (3) (4) 1. Category-1 Where annual business 7.5% of taxable income turnover does not exceed Rupees 100 million 2. Category-2 Where annual turnover 15% of taxable income exceeds Rupees 100 Million but does not exceed Rupees 250 Million

318 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

4. Amendments of the Members of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974)

In the Members of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974), the following further amendments shall be made, namely:-

(1) In section 10,-

(a) in sub-section (2A),-

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

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

(b) after sub-section (2A), as amended aforesaid, the following new explanation shall be added; “Explanation.-In this sub-section where the Pakistan International Airlines Corporation (PIAC) does not fly from the concerned member’s constituency, twenty-five business class open return air tickets shall be issued by the PIAC or travel vouchers of equivalent value for issuance of air tickets from another nearest viable Airport. The member may opt for provision of air tickets or travel vouchers.”;

222 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

(1) The small and medium enterprises may opt for taxation under final tax regime at the rates given in the table below: Sr. No. Category Turnover Rates

(1) (2) (3) (4) 1. Category-1 Where annual business turnover does 0.25% of gross turnover not exceed Rupees 100 million 2. Category-2 Where annual business turnover 0.5% of gross turnover exceeds Rupees 100 million but does not exceed Rupees 250 million

(2) Option under sub-rule (1) of this rule shall be exercised at the time of filing of return of income and option once exercised shall be irrevocable for three tax years.

(3) The provisions of section 177 and 214C shall not apply to SME who opts for taxation under sub-rule (1) of this rule.

5. Amendments of the Sales Tax Act, 1990

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

(1) in section 2,-

(a) after clause (4A), the following new clause shall be inserted, “(4AA) “Commissioner (Appeals)” means Commissioner of Inland Revenue (Appeals) appointed under section 30;”;

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

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

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

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

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

(e) in clause (43A),

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 223 “(f) a retailer who has acquired point of sale for accepting payment through debit or credit cards from banking companies or any other digital payment service provider authorized by State Bank of Pakistan; and”

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

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

(2) in section 3,-

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

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

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

(3) in section 8B,-

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

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

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

224 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

(b) after clause (ea), the following new clause (eb) shall be “(eb) Electronic version of records mentioned in clauses (a) to

(ea) of this sub-section.”.

(6) in section 25AA, the existing sub-section shall be renumbered as sub-section (1) and thereafter the following new sub-section (2) “(2) The Board may, by notification in official gazette, prescribe rules for carrying out the purpose of sub-section (1).”;

(7) after omitted section 26A, the following new section 26AB shall be “26AB. Extension of time for furnishing returns.-(1) A registered person required to furnish a return under section 26 may apply, in writing, to the Commissioner for an extension of time to furnish the return.

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

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

(a) absence from Pakistan;

(b) sickness or other misadventure; or

(c) any other reasonable cause, the Commissioner may, by order in writing, grant the applicant an extension of time for furnishing the return.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 225

(4) An extension of time under sub-section (3) shall not exceed fifteen days from the due date for furnishing the return, unless there are exceptional circumstances justifying a longer extension of time: Provided that where the Commissioner has not granted extension for furnishing the return under sub-sections (3) or (4), the Chief Commissioner may on an application made by the registered person for extension or further extension, as the case may be, grant extension or further extension for a period not exceeding fifteen days, unless there are exceptional circumstances justifying a longer extension of time.

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

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

(9) after section 40D, the following new section 40E shall be inserted, “40E. Licensing of brand name.-(1) Manufacturers of the specified goods shall be required to obtain brand licence for each brand or stock keeping unit (SKU) in such manner as may be prescribed by the Board.

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

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

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

226 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I convention, and inter-governmental agreement or similar agreement or mechanism.”;

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

(12) in section 56A,-

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

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

(iii) after sub-section (2), the following new sub-section (3) shall be added, namely:- “(3) The Federal Government may enter into bilateral or multilateral convention, and inter-governmental agreement or similar agreement or mechanism for assistance in the recovery of taxes.”;

(13) in section 56C, the existing sub-section shall be renumbered as sub-section (1) and thereafter the following new sub-section shall be added, namely:- “(2) The Board may prescribe procedure for “mystery shopping” in respect of invoices issued by tier-1 retailers integrated with FBR online system randomly and in case of any discrepancy, all the relevant provisions of this Act shall apply accordingly.”;

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 227 “Provided further that where a refund due in the consequence of any order passed under section 66 is not made within forty five days of date of such order, there shall be paid to the claimant in addition to the amount of the refund due to him, a further sum equal to KIBOR per annum of the amount of refund, due from the date of the refund order.”;

(15) in section 73, in sub-section (1), after the first proviso, the following new proviso shall be added, namely:- “Provided further that adjustments made by a registered person in respect of amounts payable and receivable to and from the same party shall be treated as payments satisfying the provisions of this sub-section subject to following conditions,

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

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

(16) in section 76, the existing sub-section shall be renumbered as sub- section (1) and thereafter the following new sub-section (2) shall be added, namely:- “(2) The Board may authorize and prescribe the manner in which fee and service charges collected under sub-section (1) shall be expended.”;

(17) in the Third Schedule, in column (1), after serial number 49, the following new serial number 50 and entries relating thereto in columns (2) and (3) shall be added, namely:- “50. Sugar except where it is supplied Respective as an industrial raw material heading”; to pharmaceutical, beverage and confectionery industries

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

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

228 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(b) in the Fifth Schedule, after S. No. 14, in column (1) and S. No. 15 shall be added, namely:-

authorized under Export Facilitation Scheme, 2021 limitations and restrictions.”; under a brand name or a trademark (PCT heading 1901.9090). which is neither; LDT; nor recreation or pleasure. ships falling under (i) above. salvage or towage services. other services provided for the handling of ships in a port.”

(19) in the Sixth Schedule,-

(a) in Table-1, in column (1),-

(i) Serial No. 22, 24, 26, 27, 29, 29C, 73, 73A, 74, 75, 76, 77, 78, 79, 80, 82, 83, 85, 91, 93, 101, 103, 106, 108, 115, 123, 124, 125, 128 and 153 and entries relating thereto in columns (2) and (3) shall be omitted;

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 229

(iii) in serial No. 137,-

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

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

(iv) after serial No. 156 and entries relating thereto in columns (2) and (3), the following new serial Nos. shall be added, namely:- “157. Import of CKD (in kit form) of following electric Respective vehicles (4 wheelers) by local manufacturers till headings 30th June, 2026:

(i) Small cars/SUVs with 50 Kwh battery or below; and

(ii) Light commercial vehicles (LCVs) with 150 kwh battery or below 158. Goods temporarily imported into Pakistan by Respective International Athletes which shall be headings subsequently taken by them within 120 days of temporary import 159. Import of auto disable Syringes till 30th June, 2021

(i) with needles 9018.3110

(ii) without needles 9018.3120 160. Import of following raw materials for the manufacturers of auto disable syringes till 30th June, 2021

(i) Tubular metal needles 9018.3200

(ii) Rubber Gaskets 4016.9310 161. Import of plant, machinery, equipment and raw Respective materials for consumption of these items within headings Special Technology Zone by the Special Technology Zone Authority, zone developers and zone enterprises 162. Import of raw materials, components, parts and Respective plant and machinery by registered persons headings authorized under Export Facilitation Scheme, 2021 notified by the Board with such conditions, limitations and restrictions.”;

(b) in Table-2, in column (1),-

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

230 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

30.06.2026 and 2009.9000 sweetening matter, excluding that sold in retail packing under a brand name retail packing under a brand name packing under a brand name packing under a brand name packing under a brand name packing under a brand name packing under a brand name powdered, excluding that sold in retail packing under a brand name poultry meat or meat offal excluding sold in retail packing under a brand name or trademark 1604.2010, 1604.2020 and 1604.2090.”.

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 231 “21. Import of POS 8470.2900, POS machines imported for installation machines 8470.9000 on retail outlets as are integrated with the Board’s computerized system for real-time reporting of sales.”.

(d) after Table-3, the following new Table shall be added, “Table-4 The goods specified in column (2) of the Annexure below falling under the PCT codes specified in column (3) of the said Annexure, when supplied within the limits of the Border Sustenance Markets, established in cooperation with Iran and Afghanistan, shall be exempted from the whole of the sales tax, subject to the following conditions, namely:-

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

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

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

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

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

232 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

Annexure Heading Nos of the First Customs Act, 1969 (IV of 1969)

0713.9090 Vigna radiata (L.) Wilczek angularis) (Vicia faba var. equina, Vicia faba var. minor) Caraway, Fennel etc) Fennel etc)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 233

1003.9000 and cream) exceeding 6 % (milk and cream) exceeding 10% (Milk and Cream) Cream) 0705.2900 0807.1900 ground or in the form of pellets, resulting from the extraction of soya bean oil. nes food industry

234 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap china having a linear c precious metal not motorised parts o/t glass inners (others)

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 235

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

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

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

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

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

(4 wheelers) till 30th June, 2026: battery or below; and (LCVs) with 150 kwh battery or below manufactured or assembled motorcars of cylinder capacity upto 1000cc the taxable areas

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

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

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

236 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(22) in the Eleventh Schedule, in the Table, after S. No. 6, in column columns (2), (3) and (4) shall be inserted, namely:-

scrap batteries under chapter 85 (PCT Headings: 8548.1010, 8548.1090) provisions of this entry the date as notified by the Board.”.

(23) in the Twelfth Schedule, in clause (2), after sub-clause (x), under

“(xi) Electric vehicles (4 wheelers) CKD kits for small cars/SUVs, battery of below till 30th June, 2026;

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

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

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

“THIRTEENTH SCHEDULE”

(Minimum Production)

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

Minimum production of steel products.-

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 237 Table S. Product Production criteria No.

(1) (2) (3) 1. Steel billets and ingots One metric ton per 700 kwh of electricity consumed 2. Steel bars and other re- One metric ton per 110 kwh of rolled long profiles of steel electricity consumed 3. Ship plates and other re- 85% of the weight of the vessel rollable 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 exceeds actual supplies for the month, the liability to pay tax shall be discharged on the basis of minimum production: Provided that in case, in a subsequent month, the actual supplies exceed the minimum production, the registered person shall be entitled to get adjustment of excess tax on account of excess of minimum production over actual supplies: Provided further that in a full year, as per financial year of the company or registered person, or period starting from July to June of next year, in other cases, the tax actually paid shall not be less than the liability determined on the basis of minimum production for that year and in case of excess payment no refund shall be admissible: Provided also that in case of ship-breaking, the liability against minimum production, or actual supplies, whichever is higher, shall be deposited on monthly basis on proportionate basis depending upon the time required to break the vessel;

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

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

238 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I 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.

(1) SMEs who opt for taxation under normal law under rule 3 may be selected for tax audit through risk based parametric computer ballot under section 214C of the Ordinance if its tax to turnover ratio is below tax rates given in rule 4 of these rules.

(2) The cases selected under sub-rule (1) of this rule shall not exceed 5% of the total population of SMEs whose tax to turnover ratio is below tax rates given in rule 4 of these rules.

6. Islamabad Capital Territory (Tax on Services) Ordinance, 2001

(1) in section 3, after sub-section (1), the following new sub-section

(1A) shall be inserted, namely:- “(1A) Notwithstanding the provision of sub-section (1), the export of services shall be charged at the rate of zero per cent.” The export proceeds of SMEs shall be subject to tax as per rates prescribed in Rule (4) under final tax regime.”;

7. Amendments of Income Tax Ordinance, 2001 (XLIX of 2001)

In the Income Tax Ordinance, 2001 (XLIX of 2001), the following further amendments shall be made, namely:-

(1) in section 2,-

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

(b) after clause (10), the following new clause shall be inserted, “(10A) “business bank account” means a bank account utilized by the taxpayer for business transaction declared to the Commissioner through original or modified registration form prescribed under section 181;”;

(c) clause (13AA) shall be re-numbered as clause (13AB) and after clause (13A), the following new clause shall be inserted, “(13AA) concealment of income includes-

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 239

(d) claiming of any income or receipt as exempt which is otherwise taxable. Explanation.-For removal of doubt it is clarified that none of the aforementioned acts would constitute concealment of income unless it is proved that taxpayer has knowingly and willfully committed these acts;”;

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

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

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

(g) in clause (29C),-

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

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

(c) after sub-clause (b), omitted as aforesaid, the following new sub-clause shall be added, namely:- “(c) telecommunication companies operating under the license of Pakistan Telecommunication Authority (PTA).”;

(h) after clause (30AC), the following new clauses shall be “(30AD) Information Technology (IT) services include software development, software maintenance, system integration, web design, web development, web hosting and network design; and

240 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(30AE) IT enabled services include inbound or outbound call graphics design, accounting services, Human Resource insurance claims processing;”;

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

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

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

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

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

small and medium enterprise exceeds two hundred and fifty million rupees, it shall not qualify as small and turnover exceeds that turnover or any subsequent tax year.

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 241

(iii) after sub-clause (iii), amended as aforesaid, the following new clause shall be added, namely:- “(iv) is not a small and medium enterprise as defined in clause (59A).;

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

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

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

(4) in section 12, in sub-section (2), after clause (c), the following explanation shall be added, namely:- “Explanation.-For removal of doubt, it is clarified that the allowance solely expended in the performance of employee’s duty does not include -

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

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

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

(6) in section 15A,-

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

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

(7) in section 18, in sub-section (1), in clause (b), for the semi colon at the end, the full stop shall be substituted and thereafter the following explanation shall be added, namely:- “Explanation.-For the removal of doubt, it is clarified that income derived by co-operative societies from the sale of goods, immoveable property or provision of services to its members is and

242 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I has always been chargeable to tax under the provisions of this Ordinance;”;

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

(9) section 23A shall be omitted;

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

(11) in section 37,-

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

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

(c) in sub-section (4A), in clause (d), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:- “Provided that, if the capital asset acquired through gift is disposed of within two years of acquisition and the Commissioner is satisfied that such gift arrangement is a part of tax avoidance scheme, then the provisions of sub-section

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

(12) in section 37A,-

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

(b) after sub-section (5), the following new sub-section shall be “(6) To carry out purpose of this section, the Board may prescribe rules.”;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 243

(13) in section 39,-

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

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

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

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

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

(16) in section 57,-

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

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

(17) in section 59AA,-

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

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

(18) in section 59B,-

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

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

244 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(19) in section 60A,-

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

(b) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, “Provided that this section shall not apply in respect of any amount of Workers’ Welfare Fund paid to the Provinces by a trans-provincial establishment.”;

(20) in section 60B,

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

(b) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:- “Provided that this section shall not apply in respect of any amount of Workers’ Profit Participation Fund paid to the province by a trans-provincial establishment.”;

(21) in section 61,-

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

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

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

(iii) after clause (c), amended as aforesaid, the following new clause shall be added, namely:- “(d) entities, organizations and funds mentioned in the Thirteenth Schedule to this Ordinance.”

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 245

(22) in section 62, in sub-section (1), in clause (ia), the word “or” at the end shall be omitted and thereafter the following new clause shall be inserted, namely:- “(ib) in respect of cost of acquiring in the tax year, unit of exchange traded fund offered to public and traded on stock exchange in Pakistan ; or “;

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

(24) section 64C shall be omitted;

(25) after section 64C, omitted as aforesaid, the following new section shall be inserted, namely:- “64D. Tax credit for point of sale machine.-(1) Any person who is required to integrate with Board’s computerized system for real time reporting of sale or receipt, shall be entitled to tax credit in respect of the amount invested in purchase of point of sale machine.

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

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

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

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

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

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

246 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I “65F. Tax credit for certain persons.-(1) Following persons or incomes shall be allowed a tax credit equal to one hundred per cent of the tax payable under any provisions of this Ordinance including minimum, alternate corporate tax and final taxes for the period, to the extent, upon fulfillment of conditions and subject to limitations detailed as under:-

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

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

(c) Income from exports of computer software or IT services or IT enabled services as defined in clause (30AD) and (30AE) of section 2 upto the period ending on the 30th day of June, 2025: Provided that eighty percent of the export proceeds is brought into Pakistan in foreign exchange remitted from outside Pakistan through normal banking channels.

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

(a) return has been filed ;

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

(c) sales tax returns for the tax periods corresponding to relevant tax year have been filed if the person is required to file Sales Tax Return under any of the Federal or Provincial sales tax laws. The provisions of section 113 of the Ordinance shall not apply to SMEs.

8. Tax on Supply of Goods

The tax deductible under clause (a) of sub-section (1) of section 153 shall not be minimum tax where payments are received on sale or supply of goods by SMEs. In the Federal Excise Act, 2005, the following further amendments shall be made, namely:”

(1) in section 4, in sub-section (4), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 319 “Provided that the approval under this sub-section shall not be required if revised return is filed within sixty days of filing of the original return and either the duty payable as per the revised return is more than the amount paid or the refund claimed therein is less than the amount as claimed, under the return sought to be revised.”;

(2) in section 14, after sub-section (3), the following new sub-section

(4) shall be added, namely:- “(4) The provision of sub-section (2) shall mutatis mutandis apply regarding assistance in collection and recovery of duties in pursuance of a request from a foreign jurisdiction under a tax treaty, a multilateral convention, and inter-governmental agreement or similar agreement or mechanism as the case may be.”;

(3) after section 45A, the following new section 45AA shall be “45AA. Licensing of brand name.-(1) Manufacturers of the specified goods shall be required to obtain brand licence for each brand or stock keeping unit (SKU) in such manner as may be prescribed by the Board.

(4) in section 47A,-

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

320 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I Government, subject to such limitations and conditions an may be specified by the Board.”; and

(iii) after sub-section (2), the following new sub-section (3) shall be added, namely:- “(3) The Federal Government may enter into a bilateral or multilateral convention, and inter-governmental agreement or similar agreement or mechanism for assistance in the recovery of duties”;

(5) in section 49, the existing sub-section shall be renumbered as sub- section (1) and thereafter the following new sub-section shall be “(2) The Board may authorize and prescribe the manner in which fee and service charges collected under sub-section (1) shall be expended.”;

(6) in the First Schedule,-

(a) in Table-1, in column (1),-

(i) S. No. 1, 2, 57 and 58 and entries relating thereto in columns (2), (3) and (4) shall be omitted;

(ii) after serial number 8b, the following new serial numbers and entries relating thereto in columns (2), (3) and (4) shall be inserted, namely:- 8c. Tobacco mixture in an electrically 2403.9990 Rupees five thousand heated tobacco product by whatever two hundred per kg”; name called, intended for consumption by using a tobacco heating system without combustion

(iii) against S. No. 55, in column (2), after the figure “87.02”, the expression “and till the 30th day of June, 2026 electric vehicles (4 wheelers)” shall be inserted;

(iv) against serial No. 55B, in column (2),-

(a) after the figure “87.02”, the expression “and till the 30th day of June, 2026 electric vehicles (4 wheelers)” shall be inserted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 321

for the expression “2.5%”, the expression “0%” shall be substituted;

for the expression “5%”, the expression “2.5%” shall be substituted; and

for the expression “7.5%”, the expression “5%” shall be substituted;

(v) against serial number 56, in column (3), for the figure

(b) in Table II,-

(i) in the heading of column (2), for the word “Goods”, the word “Services” shall be substituted;

(ii) against serial number 6, in column (4), for the word “seventeen”, the word “sixteen” shall be substituted;

(iii) after S. No. 6, in column (1) and entries relating thereto in columns (2), (3) and (4), the following new S. No.

under Serial No.6

(iv) against serial number 8, in column (2), after the word accepting digital payment” shall be inserted;

(7) in the Second Schedule, S. No. 1, 2 and 4 in column (1) and entries relating thereto in columns (2) and (3) shall be omitted; and

(8) in the Third Schedule, in Table-I, after S. No. 23, in column (1), the following new S. Nos. and entries relating thereto in columns

(2) and (3) shall be added, namely:-

322 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

Afghanistan: fractions of import, shall be allowed clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount of duty involved and the certificate issued by the Commissioner Inland Revenue having jurisdiction: exemption shall only be available to a having a functional business premises Sustenance Markets. Scheme, 2021 notified by the Board with such conditions, limitations and restrictions.”

(9) Fourth Schedule shall be omitted;

9. Provisions of Ordinance to apply

The other provisions of the Ordinance shall apply mutatis mutandis to the SMEs.”. In the Public Finance Management Act, 2019 (V of 2019), in section 30, after sub-section (2), the following new sub-section (3), shall be

“(3) The Finance Division shall exempt “Self Accounting Entities ASSAAN Assignment Account.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 323

THE FIRST SCHEDULE [see section 3(35)] In the Customs Act, 1969 (IV of 1969), in the First Schedule, for the corresponding entries against “PCT Code”, “Description” and “CD%” specified in columns (1), (2), (3) and (4) appearing in chapter 1 to 99, the following corresponding entries relating to “PCT Code”, “Description” and “CD%” shall be substituted, namely:- colloidal sulphur. concrete aggregates, for road metalling or for railway or other ballast, shingle and flint, whether or not heat- treated including borates separated from natural brine; natural boric acid containing not more than 85 % of H3BO3 calculated on the dry weight. manufacture of iron or steel.

324 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

Iodine - - - Sulphurous acid gas - - Thionyl chloride - - Other - - - Bicarbonate of ammonium

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 325

cermets), ceramic products and mixtures containing natural uranium or natural uranium compounds compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing uranium enriched in U 235, plutonium or compounds of these products compounds; alloys, dispersions (including cermets), ceramic products and mixtures containing uranium depleted in U 235, thorium or compounds of these products subheading 2844.10, 2844.20 or 2844.30; alloys, dispersions (including cermets), ceramic products and mixtures containing these elements, isotopes or compounds; radioactive residues trichloro-2,2-bis(p-chlorophenyl)ethane) their halogenated, sulphonated, nitrated or nitrosated derivatives.

326 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

dihalides n-propyl or isopropyl)phosphoramidates or isopropyl) phosphoramidocyanidates clonazepam (INN), clorazepate, delorazepam (INN), diazepam (INN), estazolam (INN), ethyl loflazepate (INN), fludiazepam (INN), flunitrazepam (INN), flurazepam (INN), halazepam (INN), lorazepam (INN), lormetazepam (INN), mazindol (INN), medazepam (INN), midazolam (INN), nimetazepam (INN), nitrazepam (INN), nordazepam (INN), oxazepam (INN), pinazepam (INN), prazepam (INN), pyrovalerone (INN), temazepam (INN), tetrazepam (INN) and triazolam (INN);salts thereof fructose; sugar ethers, sugar acetals and sugar esters, and their salts, other than products of heading 29. 37, 29. 38 or 29.39.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 327

brewers’ pitch and similar preparations based on rosin, resin acids or on vegetable pitch. specific application in textile printing included; prepared paint or varnish removers. wafers or similar forms; chemical compounds doped for use in electronics. binders dibromotetrafluoroethanes containing perfluorocarbons (PFCs) or hydrofluorocarbons (HFCs), but not containing chlorofluorocarbons (CFCs)

328 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

not containing chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs) terphenyls (PCTs) or polybrominated biphenyls (PBBs) (ISO), chlordecone (ISO), DDT (ISO) (clofenotane (INN), 1,1,1-trichloro- 2,2-bis(p-chlorophenyl)ethane), dieldrin (ISO, INN), endosulfan (ISO), endrin (ISO), heptachlor (ISO) or mirex (ISO) oxido-1,3,2-dioxaphosphinan-5-yl)methyl methyl methylphosphonate and bis[(5-ethyl-2-methyl-2-oxido-1,3,2- dioxaphosphinan-5-yl)methyl] methylphosphonate Development , Production, Stock piling and use of Chemical Weapons and on their Destruction : groups 0.032 to 0.042 g/cm3 lamb, Indian, Chinese, Mongolian or Tibetan lamb, whole, with or without head, tail or paws

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 329

one side not exceeding 435 mm and the other side not exceeding 297mm in the unfolded state exceeding 297 mm in the unfolded state: paperboard together with an adhesive), not surface- coated or impregnated, whether or not internally reinforced, in rolls or sheets. garnetted stock). gut.

330 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

yarn), whether or not put up for retail sale.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 331

50 tex tex

332 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

metre sectional dimension exceeds 1mm; strip and the like (for example, artificial straw) of artificial textile materials of an apparent width not exceeding 5 mm. polyamides or of polyesters

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 333

(other than those of heading 56.05 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale- yarn.

334 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

rope or cables, not elsewhere specified or included. Beauvais and the like, and needle- worked tapestries (for example, petit point, cross stitch) whether or not made up. chenille fabrics yarn or rubber thread heading 56.05, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included. textile materials assembled with padding by stitching or otherwise, other than embroidery of heading 58.10. for the outer covers of books or the like

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 335

being theatrical scenery, studio back- cloths or the like. or the like; incandescent gas mantles and tubular knitted gas mantle fabric therefor, whether or not impregnated. accessories of other materials. not impregnated, coated, covered or laminated with plastics, or reinforced with metal or other material. human hair rubber thread rubber thread

336 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

expanded mineral materials (including intermixtures thereof) furnaces

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 337

of filaments measuring per single yarn not more than 136 tex: - - - Other 303, 304, 304L, 316, 316L, 410, 420 & 430 316L, 410, 420 & 430 303, 304, 304L, 316, 316L, 410, 420 & 430 316L, 410, 420 & 430

338 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

316L, 410, 420 & 430 303, 304, 304L, 316, 316L, 410, 420 & 430 316L, 410, 420 & 430 316L, 410, 420 & 430 316L, 410, 420 & 430 transport of persons (other than those of heading 87.02), including station wagons and racing cars.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 339

vehicles. piston engine: form excluding those of headings 8703.2113 and 8703.2115 vehicles, in any kit form kit form form excluding those of heading 8703.2193 and 8703.2195 kit form form form excluding those of heading 8703.2240 1300cc form

any kit form - - - Sport utility vehicles form any kit form form excluding of heading 8703.2323 4X4, in any kit form form engine (diesel or semi- diesel):

340 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

form form form form form excluding those of headings 8703.3223, 8703.3225 and 8703.3227

vehicles, in any kit form in any kit form cabin type taxi of sub-heading 8703.3227. with the following features:

(1) Attack resistance central division along with payment tray.

(2) Wheel chair compartment with folding ramp

(3) Taxi meter and two way radio system

(4) Other standard accessories any kit form piston engine and electric motor as motors for propulsion, other than those capable of being charged by plugging to external source of electric power: form form form 1300cc

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 341

form form form engine (diesel or semi-diesel) and electric motor as motors for propulsion, other than those capable of being charged by plugging to external source of electric power: form form form form form form piston engine and electric motor as motors for propulsion, capable of being charged by plugging to external source of electric power: form form form 1,300cc

342 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

form

form form engine (diesel or semi-diesel) and electric motor as motors for propulsion, capable of being charged by plugging to external source of electric power: form form form form form form form excluding those of heading 8703.8030 in any kit form micro projection form parts of machines, appliances, instruments or apparatus of this Chapter or Section XVI

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 343

other dental equipment aptitude- testing apparatus accessories purposes (for example, in education or exhibitions), unsuitable for other uses.

344 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

radiations (UV, visible, IR) telecommunications (for example, cross- talk meters, gain measuring instruments, distortion factor meters, psophometers) photomasks or reticles used in manufacturing semiconductor devices

(i) Goods received as gift or donation from a foreign government or organization by the Federal or Provincial Government or any public Government and concurrence by the Federal Board of Revenue.

(ii) Goods received as gift by Pakistani organizations from Church World Services or the Catholic Relief Services as are certified by the Ministry

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 345 of National Health Services Regulation and Coordination (NHSRC), that these imports are made under agreements signed by the Government of Pakistan with the Church World Service and with the Catholic Relief Service 9909 Articles, value of which does not exceed Rs.30,000/- per parcel, if imported 0 through post or courier service as unsolicited gift parcel. 9917 (1) Goods imported into and exported (except to tariff area of Pakistan) 0 from the Export Processing Zones established under the Export Processing Zone Authority Ordinance, 1980 (IV of 1980) and any enactment relating to Gwadar Special Economic Zone, subject to such conditions, limitations and restrictions as the Federal Board of Revenue may impose from time to time.

(2) Capital goods, as defined in the preamble of Part-I of the Fifth Schedule to the Customs Act, and firefighting equipment, except the items listed under Chapter 87 of the Pakistan Customs Tariff, imported for setting up of a Special Economic Zone (SEZ) by zone developers and for installation in that zone by Zone Enterprises, on one-time basis as prescribed in the SEZ Act, 2012 and rules thereunder subject to such conditions, limitations and restrictions as the Federal Board of Revenue may impose from time to time. Co- developer as defined in Special Economic Zone Rules, 2013, shall also be entitled to avail the same incentives and exemptions for the same period as available to the Developer under the SEZ Act 2012, subject to condition that the Developer of the SEZ relinquishes its rights to the incentives and exemptions in favour of the Co-developer; provided further that the respective Special Economic Zone Authority duly endorses such reassignment, and ensures that such reassignment shall not be misused.

(3) Following imports for construction, development and operations of Gwadar port and Free Zone Area subject to such conditions, limitations and restrictions as the Federal Board of Revenue may impose from time to time:-

(i) Equipments and materials (plant, machinery, equipment, appliances and accessories), imported by the Concession holder, its operating companies including Gwadar International Terminals Limited and Gwadar Marine Services Limited, and their contractors and sub-contractors exclusively for construction and operation of the terminals and the Free Zone Area for a period of forty (40) years;

(ii) Ship bunker oils imported by the Concession holder for the sole purposes of supplying fuels and lubricants to all visiting ships including foreign and local and fishing vessels at Gwadar Port for a period of forty (40) years;

(iii) Vehicles imported by the concession holder and its operating companies for a period of twenty-three (23) years for construction, development and operations of Gwadar Port and Free Zone Area under the regulatory mechanism. The regulatory mechanism for such vehicles, including the number and types importable, shall be devised by the Ministry of Port & Shipping and FBR (in consultation with the Provincial Government if so required) and notified by the FBR;

(iv) Imports by the following businesses to be established in the Gwadar Free Zone Area for a period of 23 years with effect from 1st July, 2016, packaging, distribution, stuffing and de-stuffing, CFS, container yard, warehousing including cool and cold rooms, transhipment, labelling, light end assembly and re-

346 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I assembly, imports and exports/value added exports, value adding of imports, other similar or related businesses activities and such commercial activities as are required to support the free zone. 4 (i) Capital goods including but not limited to materials, plant, machinery, hardware, equipment and software for a period of ten years as prescribed in the Special Technology Zone Authority Ordinance, 2020 (XIII of 2020), if not manufactured locally, imported from the date of signing of the development agreement for consumption within zones by the Special Technology Zones Authority and zone developers, subject to such conditions, limitations and restrictions as the Federal Board of Revenue may impose from time to time; and

(ii) Capital goods including but not limited to materials, plant, machinery, hardware, equipment and software for a period of ten years as prescribed in the Special Technology Zone Authority Ordinance, 2020 (XIII of 2020), if not manufactured locally, imported from the date of issuance of license by the Special Technology Zones Authority for consumption within zones by the said Authority and zone enterprises, subject to such conditions, limitations and restrictions as the Federal Board of Revenue may impose from time to time. 5. Imports by persons as authorized under Export Facilitation Scheme, 2021 notified by the Federal Board of Revenue with such conditions, limitations and restrictions. 9920 Temporary Imports: 0” Goods mentioned below, imported temporarily into Pakistan with a view to subsequent exportation, subject to furnishing of undertaking/bond by the importers as well as their sponsoring Ministry/ Department/ Embassy: 1. Excavation equipment and consumable stores imported by a foreign archaeological mission to whom a license for archaeological excavation has been granted by the Federal Government or a Provincial Government. 2. Scientific and educational equipment imported for Scientific, educational or cultural seminars in Pakistan on the recommendation of the concerned Ministry. 3. Goods imported for display at international or single country exhibition organized by foreign missions or imported by or through any Ministry of Government of Pakistan provided that the imported promotional and advertising material including technical literature, pamphlets, brochures and other give-aways of no commercial value which are distributed free of cost by the exhibitors during the course of such exhibition shall not be required to be exported. 4. Machinery imported by the representatives of foreign commercial firms for demonstration purposes imported by or through the Ministry of Commerce or the Ministry of Foreign Affairs. 5. Equipment and materials imported by foreign nationals such as journalists, press photographers, members of television teams, broadcasting units and film companies subject to endorsement on their passports. The duties shall be charged if such importer fails to prove their re-export at the time of departure.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 347 6. Equipment, materials and special food stuff imported by mountaineering expeditions. In case the equipment and material is not exported the expeditions may donate such equipment and produce a certificate from the Secretary of that club to the effect that the equipment and material so imported has been donated by that expedition to that club. Special food stuff can however, be consumed by them. 7. Professional and technical apparatus/ equipment/ instruments imported by foreign nationals, experts and athlete etc. participating in an international event (including but not limited to sports events) or under any international arrangement for use solely during such event or arrangement subject to endorsement on their passports. The goods allowed temporary admission shall be identifiable at the time of import and subsequent re-export. Provided the condition of furnishing undertaking/bond by such foreign nationals will not be applicable for this clause. ***** 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 Import 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;

348 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I 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); Provided further that condition of local manufacturing shall not be applicable against Sr. No.38 of the Table, on import of plant, machinery and equipment if imported by registered pharmaceutical manufacturers for their own use subject to NOC from Ministry of Health.

(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 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 where the Pakistan Customs Computerized System is not operational, the Director 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;

(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

(iv) For “Respective Headings” entries in column (3) of the Table against which more than one rate of customs duty has been 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.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 349

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-

(a) the manufacture or production of any goods, and includes furnace, catalysts, machine tools, packaging machinery and development, quality control, pollution control and the like; and floriculture, horticulture, livestock, cool chain, dairy, poultry industry, IT sector, storage, communication and infrastructure development of SEZs by Zone Developer. TABLE

350 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

reel traveling sprinkler, drip or trickle

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 351

which are members of Pakistan Dairy Association. members of Corporate Dairy Farmers Association. Column (2) read with PCT mentioned in Column (3), the Ministry of National Food Security and Research shall certify in the prescribed manner and format as per

352 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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. mechanical systems i.e. sweep auger system, temperature control system, aeration system and roof exhaust system etc., imported during the period commencing on the 1st July, 2021 and ending on the 30th June, 2026. Food Security and Research shall certify in the prescribed manner and format as per Annex-B to the effect that the 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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 353

under section 155D of the Customs Act, 1969. 2. The goods shall of within a period of five years of its import except with the prior approval of the FBR. Goods for Miscellaneous Agro-Based goods of mentioned Industries like Milk Processing, Fruit, in Column (2) read Vegetable or Flowers Grading, Picking or with PCTs Processing etc. mentioned in Column (3), the Ministry of National Food Security and Research shall certify in the of pulps/juices. 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. 2. Condition (iv) of the preamble. preamble.

354 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

on common base for refrigerated containers. cabinets. Headings processing machinery and equipment. 2 Machinery and equipment for development of Respective 0%,3%,5% Condition (iv) of the silos. including such sectors engaged in establishing or providing cool chain activities or part thereof. 2. Condition (iv) of the preamble. 4 Machinery and equipment for initial Respective 0%,3%, 5% Condition (iv) of the replacement or expansion of desalination plants, coal firing system, gas processing plants and oil and gas field prospecting.

certify the item wise project in the prescribed format

information Online to Pakistan

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 355

B. Cardiology/Cardiac Surgery Equipment password obtained under Section

The goods shall

customs-duties and taxes at statutory rates be leviable at the time of import. Breach of this condition shall be construed as a criminal offence

under the Customs Act, 1969 (IV of 1969). 3. For sub-entry at serial A (6) and sub-entry at serial D (2) Condition (iv) of the preamble. 6. 1. Machinery, equipment, materials, capital goods, Respective 0% 1. This concession Companies or their

authorized 2. Construction machinery, equipment and and who enter into agreements with the Government of Pakistan or a Provincial Government.

Temporarily imported goods shall be cleared against a security in the form of a post-datedcheque for the differential amount between

356 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) 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 FBR. In case such of after Ten years of their importation, of duties& taxesas prescribed by the FBR. In case these FBR or before the period of Ten years from the date of their importation, 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 the FBR, subject to payment of duties and taxes, if applicable. The re- export of these goods may also be allowed subject to

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 357

the Chief Collector of Customs.

7 1. Machinery, equipment, materials, capital Respective 0%,3%,5% 1.This concession Government.

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 FBR. In case such of after Ten years of their importation, of duties & taxes as prescribed by the FBR. In case these

358 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) FBR or before the period of Ten years from the date of their importation, 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 the FBR, subject to payment of duties and taxes, if applicable. The re- export of these goods may also be allowed subject to the Chief Collector of Customs. 4. Condition (iv) of the preamble. 8 Coal mining machinery, equipment, spares, Respective 0% 1.This concession including vehicles for site use i.e. single or Headings shall be available to double cabin pickups imported for Thar Coal those Mining Field. Companies or their 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 FBR. In case such of after Ten years of their importation,

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 359

of duties & taxes as prescribed by the FBR. In case these FBR or before the period of Ten years from the date of their importation, 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 the FBR, subject to payment of duties and taxes, if applicable. The re- export of these goods may also be allowed subject to the Chief Collector of Customs. 9 1. Machinery, equipment and spares meant for Respective 0%,3%,5% 1. This concession

specialized vehicles, excluding passenger under which he intends to import the goods for the project;

(b) the chief executive or head of the

360 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) 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 FBR. In case such of after Ten years of their importation, of duties & taxes as prescribed by the FBR. In case these FBR or before the period of Ten years

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 361

from the date of their importation, 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 the FBR, subject to payment of duties and taxes, if applicable. The re- export of these goods may also be allowed subject to the Chief Collector of Customs.

Condition (iv) of the preamble.

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 meant for Respective 0% 1.This concession

specialized vehicles, excluding passenger he intends to medium or large and whether for supply to the goods for the

362 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) house consumption. 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. 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 FBR. In case such of after Ten years of their importation, of duties &taxes as prescribed by the FBR. In case these

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 363 S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) FBR or before the period of Ten years from the date of their importation, 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 the FBR, subject to payment of duties and taxes, if applicable. The re- export of these goods may also be allowed subject to the Chief Collector of Customs. 12 1. Machinery and equipment meant for power Respective 0%,3%, 5% 1.This concession transmission and grid stations including under Headings shall also be construction projects. available to primary Explanation.- For the purpose of this concession contractors of the “machinery and equipment” shall mean:- project upon

(a) machinery and equipment operated by power fulfillment of the of any description, such as used in the generation following of power; conditions,

(b) apparatus, appliances, metering and testing apparatus, mechanical and electrical control,

(a) the contractor transmission gear and transmission tower, power shall submit a transmission and distribution cables and copy of the conductors, insulators, damper spacer and contract or hardware and parts thereof adapted to be used in agreement conjunction with the machinery and equipment as under which specified in clause (a) above; and he intends to

(c) Components parts of machinery and import the equipment, as specified in clauses (a) and (b) goods for the above, identifiable for use in or with machinery project; imported for the project and equipment including spares for the purposes of the project.

(b) the chief executive or 2. Construction machinery, equipment and head of the specialized vehicles, excluding passenger contracting vehicles, imported on temporary basis as required company shall for the construction of the project. certify in the prescribed

364 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) 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 FBR. In case such of after Ten years of their importation, of duties & taxes as prescribed by the FBR. In case these FBR or before the period of Ten years from the date of their importation,

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 365

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 the FBR, subject to payment of duties and taxes, if applicable. The re- export of these goods may also be allowed subject to the Chief Collector of Customs.

Condition (iv) of the preamble. conveyors. discharging a predetermined weight of 30 kg. maximum weighing capacity exceeding 30 kg but not exceeding 5,000kg. of weighing machinery of machines of heading 8423.2000 & 8423.3000.

366 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

parts of weighing machinery of machines of heading 8423.2000 & 8423.3000. bridges, hubs excluding switches and repeaters. better, with or without weights. better, with or without weights. and air-conditioners. or pneumatic. regulating or controlling instruments and apparatus. 14 Machinery, equipment, raw materials, Respective 0% Condition (iv) of the buildings, fittings, repairing or refitting of ships, boats or floating structures imported by Karachi Shipyard and Engineering Works Limited.

15 Machinery, equipment and other capital goods Respective 0%, 3%, 10% Condition (iv) of the 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.

modernization, replacement or expansion of oil refining (Hydro-cracking)

17 Following machinery and equipment for 1. For the projects marble, granite and gem stone extraction and of Gem Stone & Pakistan Gem and Jewelry Company shall certify in the prescribed format diamond wire joints all types and imported goods are diamond wires for wire saw and spare

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 367

authorized person relevant information online to Pakistan Customs blasting machines; tungsten carbide tools; diamond tools & segments (all type & dimensions), hydraulic jacking

machines, manual and power drilling 1969. machines, steel drill rods and spring (all

sizes and dimensions), whole finding 2. For the projects system with accessories, manual of Marble & Granite portable rock drills, cross cutter and Industry, vertical drilling, extension thread rods for Development pneumatic super long drills, tools and Company shall accessories for rock drills. certify in the prescribed format and manner as per Annex-B that the imported goods are bonafide project requirement. The authorized persons of the Company 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.

The goods shall FBR. In case such of after Five years of their importation, of duties & taxes as prescribed by the FBR. In case these

368 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

FBR or before the period of Five years from the date of their importation, 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 the FBR, subject to payment of duties and taxes, if applicable. The re- export of these goods may also be allowed subject to the Chief Collector of Customs.

Condition (iv) of the preamble.

Gwadar.

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.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 369

The goods shall FBR and payment of customs duties and taxes leviable at the time of import.
Condition (iv) of the preamble. 19 Effluent treatment plants. Respective 0%,3%,5% Condition (iv) of 0%

8501.3210

(1) Off-grid/On-grid solar power system (with or without provision for USB/charging port) without switches). provision for direct connection/ input renewable energy source and with Maximum Power Point Tracking (MPPT). energy.

40MW. exceeding 40MW.

370 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(iv). 8537.2000 provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT) accessories. headings Respective headings piece with one solar water heater) solar water heater) surfaces

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 371

(viii). (Chemical). silicon ingot. headings collection. devices. above 200 KW (complete system). solutions comprising of: Respective headings wind turbine). equipment. concurred to by the FBR.

372 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

energy technologies or for conservation of energy:- 0% 8539.5010 8539.5020 0% 8539.5010 8539.5020 and mast. 8539.5020 related components including invertors (off-grid/on grid/ hybrid) with from renewable energy source and with Maximum Power Point Tracking (MPPT), charge controllers and solar batteries. different colors). energy along with solar pump voltages provision for direct connection/input from renewable energy source and with Maximum Power Point Tracking (MPPT). 1990 subject to pastes consisting of metal and other annual quota materials determination by

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 373

(vi). Development Board (AEDB), 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 the FBR and payment of customs duties and taxes leviable at the time of import.

serial number shall not be used in any other area which is 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.

number shall be released on certification from Provincial Home Secretary that the goods are bonafide requirement of the

374 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

unit as per Annex B. The goods shall Board. Security and Exchange Commission of Pakistan (SECP) and Pakistan Engineering Council. 28 Plant, machinery and production line Respective 0% This exemption is mobile phones duly certified by Pakistan Telecommunication Authority.

30 Pre-fabricated room/structures for setting up 9406.1090 8% (i) The concerned the project. The Authorized Officer of the ministry or department shall certify in the 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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 375

Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969.

verify and 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 during i. The Ministry of shall certify in the prescribed manner and format as per Annex-B to the effect that the of Ministry shall furnish all relevant password obtained under section 155D of the Customs Act, of within a period of five years of their import except with the prior approval of the FBR.

376 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5)

(ii) IOCO shall verify and determine quota requirement of such equipment. 33. New Fire-fighting vehicles manufactured as 8705.3000 10% The goods shall not such by OEMs be sold or otherwise disposed-off within a period of five years of its import without prior FBR and payment of customs duties and taxes leviable at the time of import. 34 Plant and machinery excluding consumer Chapters 84 0% This exemption durable goods and office equipment as and 85 shall be available imported by greenfield industries, intending to subject to fulfillment manufacture taxable goods, during their of following construction and installation period. conditions, namely: -

(a) the importer is registered under the Sales Tax Act on or after the first day of July, 2019;

(b) the industry is not established by splitting up or reconstruction or reconstitution of an undertaking already in existence or by transfer of machinery or plant from another industrial undertaking in Pakistan. (c)exemption certificate issued by the Commissioner Inland Revenue having jurisdiction; and

(d) the goods shall FBR and the

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 377

payment of customs duties and taxes leviable at the time of import.

Computerized

The concession

available to contractors and service companies chemicals and consumables, as are manufactured of the project will -

(a) the contractor and the service provider shall submit a copy of the contract or agreement under which he intends to import the goods for the project;

(b) the chief executive or

378 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) 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 requirement; and 3. Items imported at concessionary rates which become surplus, scrap, junk, obsolete or otherwise shall be disposed of in the following manner, namely: -

(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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 379 S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) 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

380 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) 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 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, dumpers, Respective 0% 1. The concession specialized vehicles, accessories, spares and all headings available to other items essentially required for the above contractors and projects imported by developers, contractors and service companies of service companies on an import-cum-export basis the project will be for a period of five years. subject to the following conditions, namely: -

(a) the contractor and the service provider shall submit a copy of

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 381 S. Description PCT Code Customs Duty Conditions No. (%)

(1) (2) (3) (4) (5) 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 requirement s; 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

382 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

extension for a further period, as deemed appropriate, on payment of onepercent 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. the Sales Tax Act 1990, duly certified by the Ministry of Information apparatus and Pakistan Authority (PTA), and subject to annual quota determination by the Input Output Co-efficient Organization (IOCO). manufacturers of transformers, registered under the Sales Tax Act 1990. pharmaceutical

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 383

manufacturers for their own use subject to NOC from Ministry of Health 9406.9090 Secretary of Provincial Tourism Department or equivalent 8903.9100 Government as 9506.2900 requirement of the skating boots with skates attached snowboard boots 6403.1200 6403.1900 6403.2000 6403.4000

9506.1200 9506.1900 9506.9990 for use in sports, belts and bandoliers 4203.2930 4203.3000 and accessories 8716.8090 8451.8020 8443.1920 8716.8090

384 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

8451.4010 8414.4000 8451.2900 8451.3000 9403.2000 pressure control piping with pressure gauge with complete Accessories 8419.8910 7013.9900 8402.9020 7322.1100 8415.819 3925.9000 8415.8300 8414.3090 8504.4090 8544.1190 8418.5000 8418.6990 4419.0000 8438.5000 8438.6000 7020.0090 8509.4020 8509.8000 8417.2000 8516.5000 8422.4000

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 385

9403.2000 8419.8100 8418.6990 8438.1000 8418.5000 8423.1000 4419.0000 8509.8000 8422.1900 8419.8100 8414.6000 8438.5000 9403.2000 Vacuum Cleaning Equipment and other non- powered aircraft. and paragliders) and rotochutes; parts thereof and accessories thereto.

Annex-A

Header Information e d s C u s t o m S a l e s T a x titn Q u a n t i ty ro G D d a t e & 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.

386 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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). Explanation. - Chief Executive means. - limited company or multinational organization; or Annex-B

Header Information e C

CERTIFICATE BY THE AUTHORIZED OFFICER OF THE 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.

Signature & Seal of the Authorized Officer ________________________

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, 2021 387

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) packing material and raw material for packing shall be imported 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, Coefficient Organization;

(iv) The designated/authorized representative person of Drug 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 (API)

388 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(Pharmaceutical grade)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 389

(Avicel) 87. 390 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 391

Bicarbonate)

392 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 393
394 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(compacted/ powder form for oral use)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 395

396 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

Table B

(Excipients/Chemicals)

Tragacanth,Xanthan(Pharmaceutical grades) 1516.2020 pharmaceutical Products on the quantity to be determined by Ministry of Health grade) grades) Oils and other products of the distillation of high temperature coal tar (Pharmaceutical grade) and other mineral waxes (Pharmaceutical grade) (Pharmaceutical grade) (Pharmaceutical grade)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 397

benzene acetic acid (HO-EPCP) (Pharma grade) methoxyimnno Acetic acid (ATMA); isopropoxyimino Acetic Acid[ATIBAA or ATBA; hydroxymethyl ceph-3-em-4- carboxyclic acid(Pharma grade); (ii)Rich starch

398 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

Table C

(Drugs)

headings headings including rabies immunological (150 IU per ml) (Human)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 399

(lxv). 6-Thioguanine

400 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

lohexol Inj. and etc.) Amidotrizoate (Urograffin) myocardial infarction) (i). Atazanavir

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 401

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)

402 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(ii). Printed viskerings (Pharmaceutical grade) (Pharmaceutical grade)

(ii) 20 mm and 32 mm Rubber stopper for injections (Pharmaceutical grade) (Pharmaceutical 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.

(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 7607.2000 side 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)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 403

(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) infusions (Pharmaceutical grade)

Table E (Diagnostic Kits/Equipment) reagent

404 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 405

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:-

(i) the designated/authorized person of the following Ministries, or as the case may be, companies shall furnish all relevant information as detailed of imported goods specified against serial numbers 24of Table; specified against serial number26 of Table;

specified against serial number 15 and 20 of Table;

(ii) the importer shall file the Goods Declaration online through Pakistan normal hard copy in the Collectorates/Custom-stations, in which the Pakistan Customs Computerized System is not operational as yet.

(iii) in already computerized Collectorates and Custom-stations where the Reforms and Automation or any other authorized officer shall feed the notification in the Customs Computerized System on daily basis, and the computerized, on weekly basis.

Table

egg for grandparent and parent stock of Gallus domesticus (chicken)

406 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

Afghanistan 5 Spices (Mixtures 0910.9100 11% If imported by units certified by Ministry of National production of value added chicken products 7 Sunflower seeds 1206.0000 0% For sowing purpose only as certified by Ministry of 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 units engaged in production of value added chicken products. 1701.1400 sugar sugar 15 Mixes and doughs for 1901.2000 11% If imported by units certified by Ministry of National preparation therefor, mixed condiments and mixed seasonings premixes of Vitamins, Minerals and Micro- nutrients (food grade) premix subject to certification by the Ministry of National Food Security and Research. grade) grade)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 407

preparation (coccidiostats) 30 Growth promoter 2309.9000 5% If imported by Sales Tax registered manufacturers Vitamin premix Vitamin B12 (feed grade) Vitamin H2(feed grade)

notified by the Ministry of Industries. Coatings subject to annual quota determination by the Input Output Co-efficient Organization (IOCO). notified by the Ministry of Industries. consumption carbon consumption (ethanediol) (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 units engaged in production of value 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 units engaged in production of value added chicken products. Act, 1990. certification by the Engineering Development (ii). Hot melt Board that the imported goods are not adhesives manufactured locally.

408 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

under the Agriculture Pesticides Ordinance, 1971 sprouting products and plant growth regulators products and plant growth regulators 3907.6920 1990 and subject to annual quota determination by the IOCO. 6, -6, 9, -6, 10 or -6, 12 primary form isocyanate) (crude MDI, polymeric MDI) to annual quota determination by the IOCO and certification by the Engineering Development Board that the imported goods are not manufactured locally. sheet 3920.9900 manufacturer of aseptic plastic packages meant for liquid foods, subject to quota determination by IOCO 3921.9090 the Sales Tax Act, 1990 and subject to annual quota determination by the IOCO. 62 Uncoated Film of Poly 3920.6200 11% If imported by the manufacturers of Metalized Yarn

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 409

certification by the Engineering Development Board that the imported goods are not manufactured locally. 4103.3000) 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 industry Act, 1990, and subject to annual quota determination by the IOCO. polyamides untwisted or with a twist not exceeding 120 turns per meter polymers exceeding 2.22 decitex fibre fibre

410 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

manufactured locally. 6001.2290 registered under the Sales Tax Act, 1990 as per quota determined by IOCO. 95 Aluminium Wire not 7605.1900 11% If imported by the manufacturers of Metalized Yarn to annual quota determination by the IOCO. 97 CKD kits for 8408.9000 3% This concession is only available to those parts of engines of 3 HP to 36 HP) 101 Cellular mobile phones 8517.1211 0% i. If imported by local assemblers/ manufacturers Authority (PTA) subject to quota determination by the Input Output Co-efficient Organization (IOCO). ii. Imports shall be subject to production of type approval certificate from PTA. iii. Local assemblers/ manufacturers shall furnish consignment wise NOC from PTA.

including switching

and routing 8418.6940 apparatus

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 411

door cabinet designed for insertion of electric and electronic apparatus (i). Electronic 104 8542.3900 0% If imported by SIM and Smart Card manufacturers Lamination for

dye bonding of

chip Chloride (PVC)

Rigid Film Polypropylene (BOPP) film, laminated 8905.2000 8905.9000 8906.1000 8906.9000 8907.9000 106 Defence stores, 93.00 & 15% If imported by the Federal Government for the use otherwise. 4810.1990

(3) The Nashir-e-Quran may also get printing mm Nashir-e-Quran availing the facility of

412 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

printing through vendors will be cleared against submission of bank guarantee or pay order. In such case, -

(i) the vendor shall have a firm contract with the Nashir-e-Quran;

(ii) the Nashir-e-Quran may provide the imported paper, to the vendor;

(iii) the vendor shall not be entitled to import the paper, under this scheme for printing of Quran to be supplied to the Nashir-e-Quran;

(iv) the vendor, after completing the printing, shall supply the printed Quran to that Nashir-e-Quran only with whom he held the firm contract; and

(v) the vendor shall also maintain proper record of the imported paper utilized, and printed Quran supplied to the Nashir-e-Quran;

(vi) the security deposited by the Nashir-e- Quran at the time of clearance shall be released after NOC from IOCO regarding consumption of paper and supply of finished product as per the contract.

reinforced polypropylene film than 150 g/m2 (Nonwovens) and strip and the like of heading 54.04 or 54.05, gimped (other than those of heading 56.05 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale- yarn

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 413

Optical Fiber coated paper 7607.1100 and paper board (rolled but not further worked) battery (Li-Fe-PO4) napkins registered under the Sales Tax Act, 1990, subject to annual quota determination and verification by the Input Output Co-efficient goods are not manufactured locally.

ethylene more than 25 g/m2 than 25 g/m2 but not more than 70 g/m2 than 70 g/m2 but not more than 150 g/m2

to annual quota determination and verification by

the Input Output Co-efficient Organization (IOCO). steel registered under the Sales Tax Act, 1990, subject Co-efficient Organization (IOCO). pharma grade Chloride Pharma grade bicarbonate pharma grade Chloride pharma grade

414 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

114 (i) Aluminum sheets 7606.1100 5% If imported by manufacturers of photo polymers & to annual quota determination by the Input Output Co-efficient Organization (IOCO). 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 2711.1200 0% If imported by manufacturers of Home Appliances, to annual quota determination by the Input Output of the manufacturing unit are registered with Sales R-410 sheets tube inner grooved stucco hole/3 hole) single phase manufacturing TV panels (LCD, LED, OLED, HDI etc.) oil and other textile oils, registered under the Sales Tax Act, 1990, subject to annual quota determination by the Input Output Co-efficient Organization (IOCO). 118. CNG vehicle 8409.9191 5% Brands of kits approved by OGRA, if imported by prepared paint or varnish removers.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 415

under the Sales Tax Act 1990, subject to annual quota determination by Input Output Co-efficient Organization (IOCO). buckram, registered under the Sales Tax Act 1990, subject to annual quota determination by Input Output Co-efficient Organization (IOCO).; authorized by United Nations World Food Program (UNWFP) and subject to annual quota determination by Input Output sativum) Co-efficient Organization (IOCO).”, Use Therapeutic Food (RUTF), duly authorized by United Nations International weather or not broken Children Emergency fund (UNICEF) and (IOCO).”,

their fractions

123 Yarn and film grades 3907.6110 5% if imported by registered manufacturers of film and 124 Newsprint in rolls or 4801.0000 0% If imported by newspaper or periodical publishers certified by the All Pakistan Newspaper sheets Society(APNS) by IOCO and subject to NOC from Ministry of National Health Services Regulation and copolymers Coordination (MoNHSR&C). Polypropylene (BOPP) film, laminated needles and needles for sutures

416 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

microns to 100 microns” polyamides “ 20 microns to 40 microns” Manufacturing Industry subject to quota determination by IOCO. fabrics (Dyed) 128 (i) Ednozym 3507.9000 3% if imported by Sales Tax registered manufacturers Pectofruit PR Alphamyl MG Speed,

(v) Silite High Speed and

(vi) Spindasol FJ under

precursors supplements for cows transition period calves boluses nitrogen sources manufacturers subject to quota determination by IOCO. ethylene thereof, other than stiffeners

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 417

heels of rubber 150 g/m2 than 70 g/m2 but not more than 150 g/m2 131 (i) PVC Emulsion 3904.1010 0% 1. If imported by Sales Tax grade registered manufacturers of artificial leather subject to quota determination by IOCO. grade is also subject to lab test.

Decorative Printed Industry subject to quota determination by IOCO. cap/ actuator for aerosol products 134 PET Scrap 3915.9000 11% If imported by Sales Tax registered manufacturers of Polyester Staple Fiber subject to quota determination by IOCO. 135 (i) Butt welding 7307.9300 3% If imported by registered manufacturers of Boilers Manufacturers subject to quota determination by IOCO. valves 136 (i) Other uncoated 4805.9390 0% If imported by Sales Tax registered manufacturers parchment 137 Woven fabrics 5407.2000 5% If imported by Sales Tax registered manufacturers industrial chain subject to quota determination by IOCO.

139 Specialty paper 40-50 4810.9900 0% If imported by registered manufacturers of Flexible free, white, glossy and one side coated for Gravure Printing Process IOCO. The concession shall be admissible till 30th June 2022.

418 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

141 Carbon black other 2803.0020 5% If imported by Sales Tax registered manufacturers

142 Hermetic bags and Respective 0% Subject to certification by Ministry of National Food bona fide requirement for use in the Agriculture Sector. The authorized officer of the Ministry shall furnish all relevant information on line to Pakistan Customs Computerized System against specific user ID and Password obtained under section 155D of the Customs Act, 1969.

batteries subject to quota determination by IOCO. bituminous minerals, crude 145 Raw materials used in Respective 0% If imported by registered manufacturers subject to items i.e, VTM, IV Cannula, N95 Masks, Surgical Masks, Face Shields, Tyvek Suits Hand-woven Carpets. 147 Of circular cross- 7213.9191 10% If imported by registered manufacturers of Welding than 7 mm in diameter

PART- IV

Imports of Machinery and Equipment for Textile Sector

TABLE

imported by Textile industrial units registered with Ministry of Textile Industry

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 419

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

420 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

8702.2090 8702.3090 8704.2340, 8704.3240

PART-V(A)

Import of Electric Vehicles (EV) CBU & their Parts Under Electric Vehicle Policy 2020

TABLE-I

[For 2-3 Wheelers, 4-Wheelers & Heavy Commercial Vehicles (CBUs)]

loader wheeler segment, duly approved / certified by the Engineering Development Board (EDB). EDB shall monitor compliance with the EV Policy 2020 and intimate FBR immediately in case of violation by any manufacturer to stop further clearance at the concessional rate, specified in column 4.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 421

w.e.f. 1st July, 2022 till 30th June 2026. the extent of maximum 100 units per company, duly approved/certified by Engineering Development Board (EDB). EDB shall monitor compliance with EV Policy 2020 and intimate FBR immediately in case of violation by any manufacturer to stop further clearance at the concessional rate, specified in column (4).

TABLE-II

[For CKD & EV Specific Parts]

Electric auto rickshaw (i) Following EV specific 1% The concession shall of five years from 1st

(b) Battery Charger (PCT (EDB).

(g) Signal Hook (PCT code 8504.9090) mentioned at Para-2 of SRO 656(I)/2006 dated 22.06.2006.

422 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

3-Wheeler electric (i) Following EV specific 1% (notwithstanding The concession shall

(a) Batteries other than lead acid (PCT code 85.07),

mentioned at Para-2 of SRO 656(I)/2006 dated 22.06.2006. 3. Electric motorcycle i) Following EV specific 1% (notwithstanding The concession shall Engineering Development Board (EDB).

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 423

of SRO 656(I)/2006 dated 22.06.2006. on import of CKD kits to manufacturers of electric buses for a period of five years with effect from 1st July, 2020 subject to certification and quota determination by the Engineering Development Board (EDB).

(ii) The concession shall be admissible subject to the conditions mentioned at Para- 2 of SRO 656(I)/2006 dated 22.06.2006. on import of CKD kits to manufacturers of electric trucks for a period of five years with effect from 1st July, 2020 subject to certification and quota determination by the Engineering Development Board (EDB).

(ii) The concession shall be admissible subject to the conditions

424 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

mentioned at Para- 2 of SRO 656(I)/2006 dated 22.06.2006.

(i) on import of CKD kits to manufacturers of electric prime movers for a period of five years with effect from 1st July, 2020 subject to certification and quota determination by the Engineering Development Board (EDB).

(ii) The concession shall be admissible subject to the conditions mentioned at Para- 2 of SRO 656(I)/2006 dated 22.06.2006. 7. Electric Vehicles 4- (i) EV Specific components 1% The concession shall 4-wheelers till 30th as specified in the June 2026, subject to First Schedule to by the Engineering Development Board (EDB). mentioned at Para-2 of the SRO 656(I)/2006 dated 22.06.2006. the conditions mentioned at Para-2 of the SRO 656(I)/2006 dated 22.06.2006.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 425

TABLE-III

[Miscellaneous]

existing units, duly approved/ certified, by the Engineering Development Board (EDB).

(ii) The concession shall be admissible to manufacturers of the electric vehicles specified in column (2) of Table-II above, subject to certification by EDB that the plant & machinery is specifically designed for use in setting up of electric vehicle manufacturing only. to the conditions mentioned under SRO 655(I)/2006 dated 22.06.2006. 3. Import of CBU chargers with 1% The concession shall be admissible on the CBU Customs Act, 1969).

PART V(B) Import of Parts for Hybrid Vehicles Under Auto Industry Development Exports Policy (AIDEP)

1 Following parts for Hybrid Electric Respective 4% The concession shall be

(i) thermistor including blower, tubes, hoses, pump voltage (Power control unit)

426 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

Electric motor and generator for Transaxle assembly connectors 7.Hybrid system control unit / hybrid ECU 8.Junction box 2. Following parts for Plug-in Hybrid Respective 3% The concession shall be (ii) resistor including blower, tubes, hoses, pump voltage (Power control unit) 5. Electric motor and generator for Transaxle assembly connectors 7.Hybrid system control unit / hybrid ECU 8.Junction box 9. Charger 10.Charging port

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:-

(i) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify that the imported goods/items are the company’s bonafide requirement. He Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already Customs Computerized System is not operational, the Director 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;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 427

(ii) the exemption shall be admissible on production of certificate by the intending importer is operating in the country or intends to operate in the county in the airline sector;

(iii) the list of imported items is duly approved by the Aviation Division, Government of Pakistan in line with Policy Framework approved by the Government of Pakistan;

(iv) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall furnish an undertaking to the customs authority at the time of import that the goods Aviation Division, Government of Pakistan under the Aviation Policy; and

(v) in case of deviation from the above stipulations, the Collector of 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, Respective 0% For setting up Maintenance, Repair & recognized by Aviation Division. 5. Machinery, Respective 0% On one time basis for exclusive use of New/ furniture& fixture 6. Aviation simulators Respective 0% On one time basis for aircrafts by airline

428 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

PART-VII

Miscellaneous

Table-A

0301.9100

0301.9200

0301.9300 0301.9400

Viciafabavar.minor)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 429

Table-B

duty % 27. 430 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

duty % other than noil silk 70. Measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number) (exceeding 43 metric number but not exceeding 52 metric number):

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 431

duty % (exceeding 52 metric number but not exceeding 80 metric number) (exceeding 14 metric number but not exceeding 43 metric number) (exceeding 43 metric number but not exceeding 52 metric number) (exceeding 52 metric number but not exceeding 80 metric number) (exceeding 80 metric number but not exceeding 94 metric number) (exceeding 94 metric number but not exceeding 120 metric number) metric number per single yarn) 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric decitex (exceeding 52 metric number but not exceeding 80 metric number per single yarn) metric number per single yarn) 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric decitex (exceeding 52 metric number but not exceeding 80 metric number per single yarn) decitex (exceeding 80 metric number but not exceeding 94 metric number per single yarn) decitex (exceeding 94 metric number but not exceeding 120 metric (exceeding 14 metric number but not exceeding 43 metric number) (exceeding 43 metric number but not exceeding 52 metric number)

432 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 433

duty % fibres subheadings 8703.2113, 8703.2193, 8703.2195, 8703.2240, 8703.2323, 8703.3223, 8704.2190, 8704.3130, 8704.3190 (cut to size and shaped) 8704.2190, 8704.3130, 8704.3190 (cut to size and shaped) mixture of these products

434 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

duty % other alloy steel 9018.3120

PART-VIII

Imports of specific Goods allowed at Joint Border Sustenance Markets

In order to ensure smooth functioning and operationalization of Border Markets in specific border areas, the imports under this part shall be subject to following conditions, namely.-

(i) Border markets will be functional for two days each week and total allowance per day for the visitor will be $100. ascertaining the admissible quantities of imported goods.

(iii) The visitor will purchase goods from any category up to US $50 on concessional rate of leviable duty/taxes as mentioned in column (4) of the Table.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 435

quantity being liable to duty/taxes on statutory rates.

(v) The Customs staff posted at the border market will make an entry via electronic system for the goods purchased by the visitor on the prescribed format as notified by the Board. Name & CNIC No. by the Custom Officer in respect of goods purchased along with payable Customs Duty. Table

Customs Duty (%) Category-I Wilczek Equina, Vicia faba var. Minor)

436 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

Customs Duty (%) Fennel etc) Category-II (Milk and Cream) EXCEEDING 6 % (Milk and Cream) (Milk and Cream)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 437

Customs Duty (%) form of pellets, resulting from the extraction of soya bean oil. Category-III skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap

438 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I Customs Duty S. No. Description PCT Code (%)

(1) (2) (3) (4) 27 Others (Tableware and kitchenware of porcelain or china) 6911.1090 20 28 Other (Household articles nes & toilet articles of porcelain or china) 6911.9000 20 29 Other (Glassware for table or kitchen purposes (excl. Glass having a 7013.4900 20 linear c) 30 Other (Glassware nes (other than that of 70.10 or 70.18)) 7013.9900 20 31 Spoons 8215.9910 20 32 Other (Tableware articles not in sets and not plated with precious 8215.9990 20 meta) 33 Bicycles and other cycles (including delivery tricycles), not motorised. 8712.0000 20 34 Vacuum flasks 9617.0010 20 35 Other 9617.0020 20 ***** TAHIR HUSSAIN, Secretary PRINTED BY THE MANAGER, PRINTING CORPORATION OF PAKISTAN PRESS, ISLAMABAD. PUBLISHED BY THE DEPUTY CONTROLLER, STATIONERY AND FORMS, UNIVERSITY ROAD, KARACHI.

65G. Tax credit for specified industrial undertakings

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 247 minimum and final taxes. The tax credit not fully adjusted during the year of investment shall be carried forward to the subsequent tax year subject to the condition that it may be carried forward for a period not exceeding two years.

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

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

(a) green field industrial undertaking as defined in clause

(27A) of section 2 engaged in-

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

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

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

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

248 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

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

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

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

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

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 249

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

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

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

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

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

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

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

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

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

(b) income from house property;

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

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

250 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(f) so much of the income chargeable under the head “income from business” as is expended in Pakistan for the purposes of carrying out welfare activities: Provided that in the case of income under the head “income from business”, only so much of such income shall be eligible for tax credit under this section that bears the same proportion as the said amount of business income bears to the aggregate of income from all sources; and

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

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

(a) return has been filed;

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

(d) the administrative and management expenditure does not exceed 15% of the total receipts: Provided that clause (d) shall not apply to a non- profit organization, if-

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

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

(e) approval of Commissioner has been obtained as per requirement of clause (36) of section 2: Provided that the condition of approval in respect of persons mentioned in Table-II of clause (66) of Part I of the Second Schedule to this Ordinance, shall take

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 251 effect from the first day of July, 2022 and the requirements of clause (36) of section 2, shall not be applicable for earlier years;

(f) none of the assets of trusts or welfare institutions confers, or may confer, a private benefit to the donors or family, children or author of the trust or his descendants or the maker of the institution or to any other person: Provided that where such private benefit is conferred, the amount of such benefit shall be added to the income of the donor; and

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

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

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

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

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

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

(d) are not part of restricted funds. Explanation.-For the purpose of this clause, “restricted funds” mean any fund received by the organization but could not be spent and treated as revenue during the year due to any obligation placed by the donor or funds received in kind.”;

(35) in section 100D,-

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

252 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I expression “30th day of September, 2023” shall be

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

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

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

(d) in sub-section (4),-

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

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

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

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 253 “100E. Special provisions relating to small and medium enterprises.-(1) For tax year 2021 and onwards, the tax payable by a small and medium enterprise as defined in clause (59A) of section 2 shall be computed and paid in accordance with rules made under the Fourteenth Schedule.

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

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

(38) in section 111,- a. in sub-section (2), in clause (ii), for the word “and” occurring for the second time, the word “or” shall be substituted; b. for sub-section (4), the following shall be substituted, “(4) Sub-section (1) does not apply to any amount of foreign exchange remitted from outside Pakistan through normal banking channels not exceeding five million Rupees in a tax year that is en-cashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect.”; c. in sub-section (5), the following new explanation shall be “Explanation.-For the removal of doubt, a separate notice under this section is not required to be issued if the explanation regarding nature and sources of amount credited or the investment of money, valuable article, or the funds from which expenditure was made has been confronted to the taxpayer through a notice under sub-section (9) of section 122 of this Ordinance.”.

(39) in section 113,-

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

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

254 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(i) in clause (a), for the semi colon at the end a full stop shall be substituted and thereafter the following explanation shall be added, namely:- “Explanation.-For the removal of doubt, it is clarified that the definition of turnover covers receipts from all business activities in line with expression “ turnover from all sources” used in sub-section (1) including but not limited to receipts from sale of immoveable property where such receipt is taxable under the head Income from Business;”;

(ii) in clause (c), for the proviso, the following shall be substituted, namely:- “Provided that if tax is paid under sub-section (1) due to the fact that no tax is payable or paid for the year, the entire amount of tax paid under sub-section (1) shall be carried forward for adjustment in the manner stated aforesaid: Provided further that the amount under this clause shall be carried forward and adjusted against tax liability for five tax years immediately succeeding the tax year for which the amount was paid.”;

(40) in section 114,-

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

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

(ii) after clause (b), the following new clause shall be “(c) persons or classes of persons notified by the Board with the approval of the Minister in-charge.”;

(b) in sub-section (5), in the proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:- “Provided further that the time-limitation provided under this sub-section shall not apply if the Commissioner is satisfied on the basis of reasons to be recorded in writing that

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 255 a person who failed to furnish his return has foreign income or owns foreign assets.”; and

(c) in sub-section (6), in clause (a), for the semi colon, a colon shall be substituted and thereafter the following new proviso “Provided that Commissioner may waive this condition if the Commissioner is satisfied that filing of revised accounts or audited accounts is not necessary;”;

(41) for section 114A, the following shall be substituted, namely:- “114A. Business bank account.-(1) Every taxpayer shall declare to the Commissioner the bank account utilized by the taxpayer for business transactions.

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

(42) in section 120,-

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

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

(ii) in clause (b),- (I) for the expression “adjustments were made under sub-section (2A)”, the expression “return was furnished” shall be substituted; and (II) for the full stop at the end a colon shall be substituted and thereafter the following new provisos shall be added, namely:- “Provided that until the date specified under the fourth proviso to sub-section (2A) is notified, this subsection shall be in force as if sub-section

(2A) is not in operation: Provided further that once the date under the fourth proviso to sub-section (2A) is notified,

256 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I clauses (a) and (b) shall only apply when the provisions of sub-section (2A), if invoked, are first complied with: Provided further once compliance is made under the second proviso,-

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

(ii) the date of the compliance under sub-section

(2A) shall be the date for the purposes of clause (b).”;

(b) in sub-section (2A), in clause (iv), in the third proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:- “Provided also that the provisions of this sub-section shall apply from the date notified by the Federal Board of Revenue in the official Gazette.”;

(43) in section 122,-

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

(b) in sub-section (9), for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be “Provided that order under this section shall be made within one hundred and twenty days of issuance of show cause notice or within such extended period as the Commissioner may, for reasons to be recorded in writing, so however, such extended period shall in no case exceed ninety days. This proviso shall be applicable to a show cause notice issued on or after the first day of July, 2021. Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or agreed assessment proceedings under section 122D or the time taken

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 257 through adjournment by the taxpayer not exceeding sixty days shall be excluded from the computation of the period specified in the first proviso.”;

(44) in section 122A, after sub-section (4), the following new sub- section shall be added, namely:- “(5) If any order is remanded back to any lower authority by the Commissioner for modification , alteration, implementation of directions or de novo proceedings, the order giving effect to the directions of the Commissioner shall be issued within one hundred and twenty days.”;

(45) in section 127,-

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

(b) after sub-section (3), the following new sub-section shall be “(3A) The Board may prescribe mechanism for electronic filing of the appeals.”;

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

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

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

(47) in section 134A,-

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

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

258 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(ii) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, “Provided that if the issue involves a mixed question of fact and law, the Board, while taking into consideration all relevant facts and circumstances, shall decide whether or not ADRC may be constituted.”

(b) after sub-section (1), amended as aforesaid, the following new sub-section shall be inserted, namely:- “(1A) The application for dispute resolution shall be accompanied by an initial proposition for resolution of the dispute, from which, the taxpayer would not be entitled to retract.”;

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

(e) for sub-section (5), the following shall be substituted, “(5) The recovery of tax shall be stayed on the constitution of committee till the final decision or dissolution of the committee, whichever is earlier”;

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 259

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

(49) after section 146B, the following new section shall be inserted, “146C. Assistance in the recovery and collection of taxes.-The provisions of sections 138, 138A, 138B, 139, 140, 141, 142, 143, 144, 145, 146, 146A, and 146B shall mutatis mutandis apply in respect of assistance in collection and recovery of taxes in pursuance of a request from a foreign jurisdiction under a tax treaty, a multilateral convention, an inter- governmental agreement or similar arrangement or mechanism.”;

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

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

(52) section 150A shall be omitted;

(53) in section 151, after sub-section (1), following new sub-section shall be inserted, namely:- “(1A) Every special purpose vehicle or a company, at the time of making payment of a return on investment in sukuks to a sukuk holder shall deduct tax from the gross amount of return on investment at the rate specified in Division IB of Part III of the First Schedule.”;

(54) in section 152,-

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

260 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) shall deduct tax instruments and government securities and certificates (including Shariah compliant variant) invested through aforesaid accounts at the rate specified in Division II of Part III of the First Schedule.”, and

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 261

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

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

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

(57) section 153B shall be omitted;

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

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

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

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

(d) construction contracts executed outside Pakistan; and

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

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

(a) return has been filed;

262 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

(3) The provisions of sub-section (2) shall not apply to a person who does not fulfill the specified conditions or who opts not to be subject to final taxation: Provided that the option shall be exercised every year at the time of filing of return under section 114.

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

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

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

(59) in section 155,-

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

(b) in sub-section (1), after the explanation, the following explanation shall be added, namely:- “Explanation.-For removal of doubt, it is clarified that the sub section (1) shall apply when a payment is made on account of rent of immoveable property irrespective of head of income”;

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 263

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

(b) for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, “Provided that in case of a company, the Commissioner shall issue exemption or lower rate certificate under this section within fifteen days of filing of application by the company: Provided further that the Commissioner shall be deemed to have issued the exemption certificate upon the expiry of fifteen days from filing of application by the aforesaid company and the certificate shall be automatically processed and issued by Iris: Provided also that the Commissioner may modify or cancel the certificate issued automatically by Iris on the basis of reasons to be recorded in writing after providing an opportunity of being heard.”;

(61) in section 165, after sub-section (6), the following new sub- sections shall be added, namely:- “(7) Every prescribed person collecting tax under Division II of this Part, Chapter XII or the Tenth Schedule or deducting tax from a payment under Division III of this Part, Chapter XII or the Tenth Schedule shall, e-file to the Commissioner an annual statement for the relevant tax year within thirty days of the end of tax year in addition to statement to be filed under sub-section (6) of this section.

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

264 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(62) in section 168, in sub-section (3), after clause (e), the following new clause shall be inserted, namely:- “(ea) sub-section (2) of section 154A;”;

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

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

(65) in section 182,-

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

(i) against S. No. 1, in column (3), in the proviso and before the explanation, for the full stop at the end, a colon shall be substituted and thereafter the following new provisos shall be added, namely:- “Provided further that if taxable income is up-to eight hundred thousand Rupees, the minimum amount of penalty shall be five thousand Rupees: Provided also that the amount of penalty shall be reduced by 75%, 50% and 25% if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law.”;

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 265 “Provided that where it stands established that no tax was required to be deducted or collected during the relevant period, minimum amount of penalty shall be ten thousand Rupees.”;

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

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

(v) against S. No. 6,-

(i) in column (2),- (I) after the word “tax”, occurring for the first time, the expression “paid is” shall be inserted; and (II) the expression “is paid” shall be omitted; and

(ii) in column (3), for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:- “Provided that no penalty shall be imposed to the extent of the tax shortfall occurring as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayer’s position.”;

(vi) against S. No. 10,-

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

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

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

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

266 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

expression “or business licence” shall be inserted; and

expression “and 181D” shall be added;

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

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

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

account whichever is later: Provided that if penalty worked out as aforesaid is pay a penalty of Rs.100,000 for each undeclared business bank account: applicable from the first day may update their registration forms.

(b) in sub-section (2), after the proviso, the following explanation

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 267

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

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

(ii) in clause (f), for the comma, at the end, a semi colon and the word “or” shall be inserted and thereafter the following new clause shall be added, namely:- “(g) declare business bank account(s) in the registration form or updated registration form or return of income or wealth statement,”;

(68) in section 203, in sub-section (2), for full stop at the end a colon shall be substituted and thereafter the following proviso shall be “Provided that where the offence of concealment of income which has resulted in non-payment of tax of rupees one hundred and above in case of a filer and rupees twenty five million or above in case of non-filer, the procedure provided in section 203B shall be applicable.”;

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

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

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

268 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

(5) Where the person suspected of offence of concealment of income or any offence warranting prosecution under this Ordinance is a company, every director or officer of that company whom the authorised officer has reason to believe is personally responsible for actions of the company contributing to offence of concealment of income or any offence warranting prosecution under this Ordinance shall be liable to arrest: Provided that any arrest under this sub-section shall not absolve the company from the liabilities of payment of tax, default surcharge and penalty imposed under this Ordinance.”;

203C. Procedure to be followed on arrest of a person

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 269 after perusing the record, if any and after giving the prosecution an opportunity of being heard, admit him to bail on his executing a bond, with or without sureties, or refuse to admit him to bail and direct his detention at such place as he deems fit: Provided that nothing herein contained shall preclude the Special Judge from cancelling the bail of any such person at a subsequent stage if, for any reason, he considers such cancellation necessary, but before passing such order he shall afford such person an opportunity of being heard, unless for reasons to be recorded he considers that the affording of such opportunity shall defeat the purposes of this Ordinance.

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

(5) Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the Judicial Magistrate from remanding any such person to the custody of an officer of Inland Revenue holding inquiry against that person if such officer makes a request in writing to that effect, and the Special Judge or the Judicial Magistrate, after perusing the record, if any, and hearing such person, is of the opinion that for the completion of inquiry or investigation it is necessary to make such order: Provided that the period of such custody shall not exceed more than fourteen days.

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

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

270 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I before the Special Judge or the nearest Judicial Magistrate, make a request for his further detention in his custody.

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

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

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 271

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

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

203D. Special Judges

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

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

203E. Cognizance of offences by Special Judges

(1) Notwithstanding anything contained in this Ordinance or any other law for the time being in force, a Special Judge may, within the limits of his jurisdiction, take cognizance of any offence punishable under this Ordinance upon-

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

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

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

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

272 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

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

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

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

203F. Special Judge, etc. to have exclusive jurisdiction

Notwithstanding anything contained in this Ordinance or in any other law for the time being in force no,-

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 273

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

203G. Provisions of Code of Criminal Procedure, 1898, to apply

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

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

203H. Transfer of cases

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

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

203I. Place of sittings

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

274 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

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

(73) section 222A shall be renumbered as sub-section (1) of that section and thereafter the following new sub-section shall be added, “(2) The Board may authorize and prescribe the manner in which fee and service charges collected including by ventures of public-private partnership under this section are expended.”;

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

(75) after section 227B, the following new section shall be inserted, “227BA. Reward and benefits for certain persons.-(1) The Board may sanction rewards to e-intermediaries for filing of returns of new taxpayers.

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

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 275 “227E. E-hearing.-(1) The Board may design and prescribe e-hearing module for the purpose of conducting hearings, granting opportunity of being heard and electronically receiving any information for the purpose of this Ordinance.

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

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

(77) after section 230H, the following new sub-section shall be inserted, “230I. Directorate General of Compliance Risk Management.-

(1) The Directorate General of Compliance Risk Management shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.

(2) The Board may, by notification in the official Gazette-

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

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

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

(79) in section 231B, after sub-section (2), the following new sub- section shall be inserted, namely:- “(2A) Every motor vehicle registration authority of Excise and Taxation Department shall, at the time of registration, collect tax at the rates specified in Division VII of Part IV of the First Schedule, if the locally manufactured motor vehicle has been sold prior to registration by the person who originally purchased it from the local manufacturer.” ;

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

276 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

(82) section 234A shall be omitted;

(83) in section 235,

(a) in sub-section (1),

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

(ii) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, “Provided that the provisions of sub-section (1) shall not apply to a domestic consumer of electricity if his name appears on the Active Taxpayers’ List.”; and

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

(84) section 235A shall be omitted;

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

(86) section 236B shall be omitted;

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

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

(b) in the proviso, for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be “Provided further that if the seller or transferor is a non- resident individual holding Pakistan Origin Card (POC) or

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 277 National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.”;

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

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

(90) section 236HA shall be omitted;

(91) in section 236K,-

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

(b) in sub-section (2), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be “Provided that if the buyer or transferee is a non- resident individual holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who has acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability for such buyer or transferee.”; and

278 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(c) in sub section (3), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be “Provided that where tax has been collected along with installments, no further tax under this section shall be collected at the time of transfer of property in the name of buyer from whom tax has been collected in installments which is equal to the amount payable in this section.”;

(92) sections 236L shall be omitted;

(93) section 236P shall be omitted;

(94) section 236S shall be omitted;

(95) section 236V shall be omitted;

(96) section 236Y shall be omitted;

(97) after section 241, the following new section shall be added, “242. Benefits of repealed provisions.-The existing beneficiaries of exemptions or concessionary provisions of the Ordinance, already expired or expiring, on thirtieth day of June, 2021 or repealed by Tax Laws (Second Amendment) Ordinance, 2021 shall continue to enjoy benefits of the repealed provisions for the periods prescribed therein and subject to conditions and limitations specified therein.

(98) in the First Schedule,- (A) in Part I,-

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 279

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

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

“TABLE

Tax Year 2018, 2019, 2020 and 2021 acquired before acquired after 01-07-2016 01-07-2016 period of a security is less than twelve months period of a security more but less than twenty-four months period of a security acquired on or after 1st July, 2013. 4. Where the security 1st July, 2013 5%”;

Pakistan Mercantile Exchange

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

“Division VIII

Tax on capital gains on disposal of Immoveable Property

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

280 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

TABLE

not exceed Rs. 10 million not exceed Rs. 15 million

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

Minimum Tax as percentage of the person’s turnover for the year Company Limited and Sui Northern Gas annual turnover exceeds rupees one billion.) and poultry feed production; Sales Tax Act, 1990 moving consumer goods and cigarettes; registered under the Sales Tax Act, 1990; goods who are integrated with Board or its computerized system for real time reporting of sales and receipts; e-commerce including from running an online marketplace as defined in clause (38B) of section 2. of used vehicles; and

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

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

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 281

percent:”;

expression “, Real Estate Investment Trusts” shall be inserted;

(b) in Division IA, for the colon at the end, a full stop shall omitted;

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

“section 2” shall be substituted;

inserted;”;

omitted;

following shall be substituted, namely :-

282 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

transport services, freight forwarding services, air outsourcing services, hotel services, security guard section 2, tracking services, advertising services (other than by print or electronic media), share registrar services, engineering services including companies, data services provided under license certification, testing and training services, oilfield management services, travel and tour services.

withholding tax on gross receipts and the service provider has not agitated taxation of gross receipts before any court of law”;

figure “6.5%” shall be substituted; and

the figure “7%” shall be substituted ;

(g) after Division IV, the following new Division shall be

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 283

“Division IVA

Exports of Services

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

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

“TABLE

exceed Rs. 300,000 600,000 2,000, 000”;

(i) Division VIB shall be omitted;

(D) in Part IV,-

(a) Divisions IIA and IIB shall be omitted;

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

“DIVISION IV

Electricity Consumption

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

284 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

TABLE

exceed Rs. 20,000 exceeding Rs. 20,000 for commercial consumers Rs. 1950 plus 5% of the industrial consumers

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

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

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

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

(d) Division VI and VIA shall be omitted;

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

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

TABLE

No.

(f) Division IX shall be omitted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 285

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

(h) for Division XV, the following shall be substituted, “DIVISION XV Advance tax on sale to retailers The rate of collection of tax under section 236H on the gross amount of sales shall be 0.5%.” ; and

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

(99) in the Second Schedule,- (A) in Part I,-

(i) clause (4) shall be omitted;

(ii) clause (39) shall be omitted;

(iii) in clause (57),-

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

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

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

286 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

(v) in clause (66),-

(a) in sub-clause (1), in the Table 1, in column (1), after S. No. (xxxvi) and entries relating thereto in

(b) in sub-clause (2), in the Table 2, in column (1), serial numbers (i), (viii), (x), (xx), (xxx), (xxxi), (xxxiii) and (xxxvi) and entries relating thereto in column (2) shall be omitted;

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

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

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

(viii) in clause (78), for the expression “citizens of Pakistan

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 287

companies” shall be substituted;

(ix) in clause (79), for the expression “citizen of Pakistan National ID Card for Overseas Pakistanis (NICOP) or

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

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

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

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

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

“(103D) Dividend income and long term capital gains of any venture capital fund from investments in zone enterprises as defined in clause (p) of section 2 of

(xiv) clauses (104), (105), (105A), (110B), (110C), (114), (114AA) and (117) shall be omitted;

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

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

100,000 barrels per day for which approval is given by the Federal Government before the 31st day of December, 2021; or

288 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

modernization or expansion project of any existing refinery which makes undertaking to the Federal Government in writing before the 31st day of December, 2021 in this regard:

beginning from the date of commencement of commercial production in the case of new completion of up gradation, modernization or expansion project of existing refinery.

under this clause shall only be available to those refineries whose products fulfill Euro 5 standards”;

(xvii) after clause (126E), the following new clause shall be

operations of the zones for a period of ten years starting from the date of signing of the development agreement;

2020 for a period of ten years from the date Technology Zone Authority; and

Zones Ordinance 2020.”;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 289

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

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

“2022” shall be substituted;

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

(b) in sub-clause (c), in the fifth proviso, for the full stop at the end, a colon shall be substituted and

this clause shall be available to persons, who enter into agreement or to whom letter of intent is issued by Federal or Provincial Government for setting up an electric power generation project in Pakistan after the 30th day of June, 2021.”;

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

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

290 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

bagasse/biomass based cogeneration power project having one or more boilers of not less than 60 bar (kg/CM3) pressure each, commissioned after the first day of January 2013.”;

(xxvi) clauses (133), (135A), (136), (141), (143), (146) and (148) shall be omitted;

(xxvii) after omitted clause (148), the following new clause

channels in foreign currency received by an Pakistan; and

resident of Pakistan, is engaged as an expert by an international buying house.

acting as buying offices, buyers’ agents, or registered as liaison offices with Board of SECP. Provided that such buying houses act as cost centers with the sole purpose to bring export orders to Pakistan on behalf of their expenses are remitted to Pakistan.”

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 291 (B) in Part II,-

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

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

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

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

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

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

292 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

the white sugar shall be collected at the rate of 0.25% from the 26th day of January 2021 till the 30th day of June, 2021.

tax under section 148 shall be collected at the rate sugar mills from the 26th day of January, 2021 to the 30th day of June, 2021 both days inclusive provided that such imports shall not exceed fifty hundred thousand metric tons in aggregate by the sugar industry.”;

(g) after clause (18B), omitted as aforesaid, the following new clause shall be added, namely:-

“(18C) The rate of tax as specified in Division-III of Part-I of First Schedule shall be reduced to 7.5% in case “attributable” to profits and gains derived from a bagasse and biomass based co-generation power (132C) of Part-I of this Schedule:

dividends shall be computed in accordance with the following formula, namely:-

AXB/C

the bagasse and biomass based cogeneration power (132C) of Part-I of this Schedule; and

year.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 293

clarified that accounting profit attributable to the bagasse/biomass based cogeneration power project would be determined by the external auditor of the certificate to this effect.”;

(i) in clause (24A), the expression “and for large distribution houses who fulfill all the conditions for a large import house as laid down under clause (d) of sub- section (7) of section 148, for large import houses,” shall be omitted;

(k) for clause (24C), the following shall be substituted,

“(24C) The rate of tax under clause (a) of sub-section (1) of section 153 in the case of distributors, dealers, edible oil as recipient of payment shall be 0.25% 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):

shall only be available to those Tier-1 retailers as sales or receipts.”;

(l) for clause (24D),the following shall be substituted, namely :-

section 113 in the case of distributors, dealers, sub- dealers, wholesalers and retailers of fast moving consumer goods, fertilizer, locally manufactured

294 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I mobile phones, sugar, electronics excluding imported mobile phones, cement and edible oil shall be 0.25% subject to the condition that beneficiaries of reduced rate are appearing on the Active Taxpayers’ Lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001: Provided that the benefit under this clause shall be available to only those Tier-1 retailers as defined under Sales Tax Act, 1990 who are integrated and configured with Board or its computerized system for real time reporting of sales or receipts.”;

(m) clauses (28A) and (28B) shall be omitted;

(n) in clause (28E), the expression “for tax year 2020” shall be omitted;

(o) after clause (28E), the following new clause shall be “(28F) The rate of tax under clause (b) of sub-section (1) of section 153 in case of oil tanker contractor services shall be 2% of the gross amount of the payments.”; (C) in Part III,-

(a) clauses (2), (7) and (8) shall be omitted;

(b) in clause (9), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso “Provided that exemption under this clause shall continue to remain available to such projects which commence on or before the 30th day of June, 2024.”;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 295

commence on or before the 30th day of June, 2024.”; and

(d) after clause (16), omitted as aforesaid, the following new clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2019, namely:-

and profits shall not be more than sum of 1% of their turnover from cotton lint, cotton seed, cotton seed oil and cotton seed cake:

milling activities only.”; and

(e) after clause (17), inserted as aforesaid, the following new clauses shall be added, namely:-

supply contract of an Independent Power Producer located wholly or partly in territories of AJ&K shall be 1% provided:

project;

Finance Act, 2018;

offshore supply contractor having permanent contemplated under Income Tax Ordinance, 2001; and

the offshore contractor.

296 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

and gains derived from business chargeable to tax under the head “Income from Business” shall be reduced by 25%.

woman enterprise means a startup established on proprietorship concern owned by a woman or an owned by women:

be available to a business that is formed by the splitting up of an existing business. “;

or insurance company in respect of profit on debt from investment in Federal Government securities shall be fifteen percent of the gross amount of the profit on debt:

on the income representing profit on debt from investment in Federal Government securities.”;

(b) after the omitted clause (4), the following new clause shall be inserted, namely:-

“(4A) No provision of this Ordinance shall apply for recoup of tax credit already allowed to National notwithstanding non issuance of share certificates or any restructuring of its ownership pattern or debt to equity ratio prior to privatization as part of the privatization process.”;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 297

(i) sub-clauses (ix), (x), (xiii), (xv), (xviii) and (xxix) shall be omitted;

clauses shall be added, namely:-

Limited (INPCCL);

exemption under clause (132C) of Part-I of this Schedule;

commencing from the commercial operation dates and continuing after the date of change of ownership as a result of privatization by the Privatization Commission of Pakistan.”;

clause (126E) of Part I of this Schedule for tax year 2021 and onwards

clause (126EA) of Part I of this Schedule;

of Part I of Second Schedule.”;

(d) in clause (12B), for the expression “30th day of September, 2020”, the expression “30th day of June, 2021” shall be substituted;

(e) after clause (12E), the following new clauses shall be

import of 1.5 million tons of wheat having PCT Heading 1001.1900 and 1001.9900 in pursuance of

298 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

the 16th June, 2020;

of the Cabinet Decision in case No. 541/30/2020 dated the 4th August, 2020, not apply on import by the Trading Corporation of Pakistan of 300,000 metric tons of white sugar having PCT heading 1701.9910,1701.9920, specification B;

on import of following goods for a period of three months starting from the 23rd of June, 2020, namely:-

; and

apply in respect of the letters of credit opened or goods declaration forms filed on or after the 23rd June, 2020;

import of 83 X Micron sprayers for Anti-Locust Disaster Management Authority (NDMA).

of the Cabinet Decision in case No. 34/02/2021, dated the 12th January, 2021, not apply on import of three hundred thousand metric tons of wheat Corporation of Pakistan;

manufacturers of oxygen for a period of three December, 2020, namely:-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 299

apply in respect of the letters of credit opened or goods declaration forms filed on or after the 25th day of December, 2020;

(12L) The provisions of section 148 and 153 shall not imported by the Trading Corporation of Pakistan;

(12M) The provisions of section 148 shall not apply on hundred and eighty days starting from the 14th day of May, 2021, namely:-

(12N) Border sustenance markets-

on the import of goods which takes place within the jurisdiction of Border sustenance markets specified in Table-I below:-

TABLE - I

concession or reduced rate under the provisions of CHILLED.

300 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I PCT Heading —other- which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 13. 07132090 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets – Beans of the species Vigna mungo (L.) Hepper or 14. 07133100 Vigna radiata (L.) Wilczek – small red (Adzuki) beans (Phaseolus or Vigna 15. 07133200 angularis) 16. 07133300 Kidney beans including white beans – Bambara - vigna subteranea or vaahdzeia 17. 07133400 subterrea 18. 07133500 - - Cow peas (Vigna unguiculata) – Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 19. 07133990 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 20. 07134010 - Lentils (Dry Whole) - Broad beans (Vicia faba var. major) and horse 21. 07135000 beans (Vicia faba var. equina, Vicia faba var. minor) 22. 07136000 - Pigeon peas (cajanus cajan) - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 23. 07139090 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 24. 09051000 Vanilla (Neither crushed nor ground) 25. 09061100 Cinnamon 26. 09061900 Other (Cinnamon And Cinnamon Tree Flowers) 27. 09071000 - - Neither crushed nor ground (Cloves) 28. 09072000 - - Crushed or ground (Cloves) 29. 09081100 - - Neither Crushed nor ground (Nutmeg) 30. 09081200 - - Crushed or ground (Nutmeg) 31. 09082100 - - Neither crushed nor ground (Maze) 32. 09082200 - - Crushed or ground (Maze) 33. 09083110 - - - Large (Cardammoms) 34. 09083120 - - - Small (Cardammoms) 35. 09083200 - - Crushed or ground (Cardammoms) 36. 09092100 - - Neither crushed nor ground (Coriander) 37. 09092200 - - Crushed or ground (Coriander) 38. 09093100 - - Neither crushed nor ground (Seeds of Cumins) 39. 09093200 - - Crushed or ground (Seeds of Cumins) - - Neither crushed nor ground (Seeds of Anise, 40. 09096100 Badian, Caraway, Fennel etc) - - Crushed or ground (Seeds of Anise, Badian, 41. 09096200 Caraway, Fennel etc) 42. 09109910 - - - THYME; BAY LEAVES 43. 10031000 Barley (Seeds) 44. 10039000 Other (Barley) 45. 12060000 Sunflower seeds ,whether or not broken 46. 12129200 Locust beans 47. 12130000 Cereal straws and husks 48. 15161000 Animal Fats and Oil and their fractions 49. 15162010 Vegetable Fats and their fractions 50. 15162020 Vegetable Oils and their fractions - - - Knives and cutting blades for paper and paper 51. 82089010 board -OF A FAT CONTENT, BY WEIGHT, NOT 52. 04011000 EXCEEDING 1 % (Milk and Cream) -OF A FAT CONTENT, BY WEIGHT, EXCEEDING 1 53. 04012000 % BUT NOT EXCEEDING 6 % (Milk and Cream)

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 301 PCT Heading - Of a fat content, by weight, exceeding 6 % but not 54. 04014000 exceeding 10% (Milk and Cream) - Of a fat content, by weight, exceeding 10 % (Milk 55. 04015000 and Cream) 56. 07039000 -LEEKS AND OTHER ALLIACEOUS VEGETABLES 57. 07041000 -CAULIFLOWERS AND HEADED BROCCOLI 58. 07042000 -BRUSSELS SPROUTS 59. 07051100 - - CABBAGE LETTUCE (HEAD LETTUCE) - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 60. 07051900 Customs Act, 1969 and Sales Tax Act, 1990 or - - WITLOOF CHICORY (CICHORIUM INTYBUS 61. 07052100 VAR.FOLIOSUM) - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 62. 07052900 Customs Act, 1969 and Sales Tax Act, 1990 or -OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 63. 07069000 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets Fruits of the genus Capsicum or of the genus 64. 07096000 Pimenta 65. 08042000 Figs 66. 08061000 -FRESH (Grapes) 67. 08062000 —DRIED (Grapes) 68. 08071100 - - WATERMELONS - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 69. 08071900 Customs Act, 1969 and Sales Tax Act, 1990 or 70. 08081000 -APPLES 71. 09021000 Green Tea 72. 09022000 Other Green Tea 73. 09101200 - - Crushed or ground (Ginger) 74. 09103000 -TURMERIC (CURCUMA) - - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 75. 09109990 Customs Act, 1969 and Sales Tax Act, 1990 or 76. 17021110 Lactose (Sugar ) 77. 17021120 - - - Lactose syrup - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 78. 17021900 Customs Act, 1969 and Sales Tax Act, 1990 or 79. 17029020 - - - CARAMEL OIL-CAKE AND OTHER SOLID RESIDUES, WHETHER OR NOT GROUND OR IN THE FORM 80. 23040000 OF PELLETS, RESULTING FROM THE EXTRACTION OF SOYA BEAN OIL. 81. 23099000 Other (animal feed) 82. 52042010 — FOR Sewing (Thread) 83. 52042020 For embroidery (Thread)

302 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I PCT Heading 84. 82011000 - Spades and shovels Other (Tools for masons, watchmakers, miners and 85. 82055900 hand tools nes) - For kitchen appliances or for machines used by the 86. 82083000 food industry - - - Other which qualifies for exemption or concession or reduced rate under the provisions of 87. 82089090 Customs Act, 1969 and Sales Tax Act, 1990 or 88. 04031000 -YOGURT 89. 07019000 Other (Potatoes) 90. 07104000 - Sweet corn 91. 07109000 - Mixtures of vegetables 92. 08041010 Fresh (Dates) 93. 08041020 Dried (Dates) 94. 08091000 -APRICOTS 95. 08092100 - - Sour cherries (Prunus cerasus) - - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 96. 08092900 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 97. 08093000 -PEACHES, INCLUDING NECTARINES 98. 08094000 -PLUMS AND SLOES 99. 08101000 Strawberries 100. 08105000 Kiwi Fruit 101. 09101100 - - Neither crushed nor ground (Ginger) 102. 10011900 Other (Durum wheat (excl. seed for sowing)) Other (Wheat and meslin (excl. seed for sowing, and 103. 10019900 durum wheat)) 104. 11010010 Of Wheat (Flour) 105. 11010020 Of Meslin (Flour) 106. 19021920 - - - VERMACELLI 107. 19059000 Other (Packed Cake) 108. 20071000 Homogenised perparations 109. 20079100 Citrus Fruit Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 110. 20079900 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets -ORGANIC SURFACE-ACTIVE PRODUCTS AND PREPARATIONS FOR WASHING THE SKIN, IN 111. 34013000 THE FORM OF LIQUID OR CREAM AND PUT UP FOR RETAIL SALE, WHETHER OR NOT CONTAINING SOAP 112. 34022000 - Preparations put up for retail sale –– Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 113. 34029000 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets Others (Tableware and kitchenware of porcelain or 114. 69111090 china) Other (Household articles nes & toilet articles of 115. 69119000 porcelain or china) Other (Glassware for table or kitchen purposes (excl. 116. 70134900 glass having a linear c) Other (Glassware nes (other than that of 70.10 or 117. 70139900 70.18)) 118. 82159910 - - - Spoons 119. 82159990 Other (Tableware articles not in sets and not plated

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 303

with precious meta)l 120. 87120000 tricycles), not motorised. concession or reduced rate under the provisions of

(b) The provisions of section 154 shall not apply within the jurisdiction of Border sustenance markets specified in Table - II below:-

TABLE-II

Other cuts with bone in (Meat of bovine animals, 1. 02012000 fresh or chilled) Other cuts with bone in (Meat of bovine animals, 3. 02022000 frozen) -OTHER which qualifies for exemption or concession or reduced rate under the provisions of Customs 14. 07069000 Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets Fruits of the genus Capsicum or of the genus 17. 07096000 Pimenta (pepper)

304 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I Sr.# PCT Heading Description 33. 08092900 Cherries 34. 08093000 Peaches 35. 08101000 Strawberries 36. 08109010 Pomegranates 37. 08109090 Fresh fruits nes (Other) 38. 08133000 Apple 39. 09021000 Green Tea 40. 09022000 Other green tea 41. 09030000 Mate. 42. 09042110 Red Chillies (Whole) — Other which qualifies for exemption or concession or reduced rate under the provisions of Customs 43. 09042190 Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 44. 09042210 Red Chillies (Powder) — Other which qualifies for exemption or concession or reduced rate under the provisions of Customs 45. 09042290 Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 46. 09051000 - - Neither crushed nor ground (Vanilla) 47. 09052000 - - Crushed or ground (Vanilla) 48. 10061010 - - - SEED FOR SOWING (Rice) - - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 49. 10061090 Customs Act, 1969 and Sales Tax Act, 1990 or 50. 10062000 -HUSKED (BROWN) RICE 51. 10063010 - - - BASMATI (Rice) - - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 52. 10063090 Customs Act, 1969 and Sales Tax Act, 1990 or 53. 10064000 -BROKEN RICE 54. 11010010 Flour (of Wheat) 55. 12074000 - Sesamum seeds 56. 12079900 Other (hemp Seeds) 57. 12119000 Ajwain 58. 15162020 Vegetable Oils and their fractions 59. 19021920 - - - VERMACELLI 60. 19041090 Papad 61. 20071000 - Homogenised preparations 62. 20081900 –Nimko 63. 21069090 - - - OTHER (Custard Powder) 64. 23099000 Other (Animal feed) 65. 25010010 Table Salt 66. 25010020 — Rock Salt 67. 25010030 — Sea Salt — Other which qualifies for exemption or concession or reduced rate under the provisions of 68. 25010090 Customs Act, 1969 and Sales Tax Act, 1990 or 69. 34060000 Candles 70. 36050000 Safety Match 71. 39264090 -OTHER (Plastic Articles) Woven fabrics of jute or of other textile bast fibres, 72. 53101000 unbleached

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 305 Sr.# PCT Heading Description 73. 53109010 - - - Jute (hessian cloth) 74. 56074100 - - Binder or baler twine - - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs 75. 56074900 Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 76. 56075000 - Of other synthetic fibres – Unbleached (Terry toweling in similar woven terry 77. 58021100 fabrics, of cotton) – Other (Terry toweling In similar woven Terry 78. 58021900 fabrics, OF cotton) - Terry towelling and similar woven terry fabrics, of 79. 58022000 other textile materials 80. 58023000 - Tufted textile fabrics 81. 58043000 - Hand made lace Hand-woven tapestries of the type Gobelins, Flanders, Aubusson, Beauvais and the like, and 82. 58050000 needle-worked tapestries (for example, petit point, cross stitch), whether or not made up. - Fabrics consisting of warp without weft assembled 83. 58064000 by means of an adhesive (bolducs) - Textile fabrics coated with gum or amylaceous 84. 59011000 substances, of a kind used for the outer covers of books or the like Mix Goods/Garments (Babies garments&clothg 85. 61119000 accessories) 86. 62031990 —OTHER (Men or Boys Suits etc) 87. 62042200 - - Of cotton 88. 62042900 - - Of other textile materials 89. 62043900 - - Of other textile materials 90. 62044210 - - - Shisha embroidered dresses -OTHER which qualifies for exemption or concession or reduced rate under the provisions of 91. 62129000 Customs Act, 1969 and Sales Tax Act, 1990 or 92. 63021090 -OTHER (Bed linen, Toilet linen etc) Jute Bags (of jute or of other textile bast fibres of 93. 63051000 heading 53.03) 94. 63052000 Sacks and bags, for packing of goods, of cotton 95. 63090000 Worn clothing and other worn articles Other (Tableware and kitchenware of porcelain or 96. 69111090 china) Others (Household articles nes & toilet articles of 97. 69119000 porcelain or china) Drinking glasses (excl. glasses of glass ceramics or 98. 70133700 of lead crystal a 99. 73181690 Nuts, iron or steel, nes (Others) Tools for masons, watchmakers, miners and hand 100. 82055900 tools nes (Other) Hand tools (Other, including sets of articles of two or 101. 82059000 more subheadings of this heading) 102. 82119100 - - Table knives having fixed blades 103. 82119200 - - Other knives having fixed blades Tableware articles not in sets and not plated with 104. 82159990 precious metal 105. 84485100 Needle 106. 96170010 - - - Vacuum flasks

306 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

concession or reduced rate under the provisions of Federal Excise Act, 2005 for Border Sustenance Markets

cooperation with Iran and Afghanistan;

has been availed, are brought outside the limits of such markets, income tax shall be charged on the import value as per provisions of section 148 of this Ordinance;

clearance by the Customs Authorities subject to furnishing of bank guarantee equal to the amount Revenue having jurisdiction;

functional business premises located within limits of the Border Sustenance Markets; and

penalties involved.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 307

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

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

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

(i) after clause (43F), the following new clause shall be

commodity futures contracts listed on a Futures Exchange licensed under the Futures Market Act, 2016 (XIV of 2016).”;

(j) in clause (45), in the proviso, in paragraph (b), for the omitted;

shall be omitted;

withholding tax under clause (a) and (b) of sub- section (1) of section 153 is available only to the taxpayers of categories specified at serial no (i) to

(v) of this clause:”; and

308 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

the purchase of used motor vehicles from general public.”;

substituted, namely:-

in clause (12) of Part IV of Second Schedule, persons receiving payments exclusively for the supply of agriculture produce including following-

farming;

person engaged in poultry farming;

cattle farming;

market.”; and

substituted, namely:-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 309

receiving payments for the transmission of electricity and gas.”;

omitted;

shall be inserted, namely:-

subsequently taken back by them within one import;”;

clauses shall be added, namely:-

subsequently imported in Pakistan within one year of their exportation, provided conditions of section 22 of the Customs Act, 1969 (IV of 1969) are complied with;

power project qualifying for exemption under clause (132C) of Part-I of this Schedule.;

Scheme 2021 notified by the Board with such scope, conditions, limitation, restrictions and specification of goods.;

condition;

and similar printed matter, whether or not in single sheets.(PCT code 49.01);

310 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

advertising material (PCT code 49.02); and

Board (respective PCT headings) ;”

(q) in clause (59), in para (ii), for the expression expression “Companies Act, 2017 (XIX of 2017)” shall be substituted;

(r) after clause (60D), the following new clause shall be

the import of the capital equipment as defined in Ordinance 2020 (XIII of 2020) by-

Special Technology Zones Ordinance 2020 zones for the period of 10 years commencing agreement;

Ordinance, 2020 for a period of ten years from the date of issuance of license by the Special Technology Zone Authority; and

Zones Ordinance 2020.”;

(t) after the omitted clause (79), the following new clause shall be inserted, namely:-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 311

“(79A) The provisions of clause (b) of sub-section (1) of section 153 shall not apply to payments received (XVII of 1996).”;

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

their respective PCT heading”;

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

151,231A,231AA and 236P”, the expression “ 131 and 151” shall be substituted;

(z) after clause (111A), the following new clause shall be

“(111AB) The provisions of section 100BA and rule 1 of the individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) (FCVA) or Non-resident Pakistani Rupee Value Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan.”;

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

312 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

“(114A) The provisions of clause (ae) of sub-section (1) of section 114 and section 181 shall not apply to a Pakistanis (NICOP) or Computerized National ID exchange regulations issued by the State Bank of Pakistan:

person referred in this clause has Pakistan-source

Pakistani Rupee Value Account (NRVA);

Pakistan (GOP) securities either conventional or Shariah Compliant where investment has NRVA;

property acquired from proceeds of FCVA or NRVA;

mutual funds that are acquired from proceeds of FCVA or NRVA; or

Pakistan Stock Exchange and mutual funds that are acquired from proceeds of FCVA or NRVA.”;

236P” shall be omitted;

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 313

(ae) after clause (117), omitted as aforesaid, the following new clauses shall be added, namely:- “(118) The provisions of withholding taxes contained in the Income Tax Ordinance, 2001 (XLIX of 2001) shall not apply to Islamic Naya Pakistan Certificates Company Limited (INPCCL) as a recipient. (119) The provisions of section 153(1)(a) shall with effect from the first day of July, 2020 not apply to distributors, dealers, wholesalers and retailers of locally manufactured mobile phone devices as withholding agent.”; (100) in the Third Schedule,-

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

(b) in Part II,- (I) in the heading, the expression “23A” shall be omitted; and (II) in paragraph (2), the expression “section 23A and” shall be omitted; (101) in the Fifth Schedule, in Part II, rule 4 shall be omitted; (102) in Seventh Schedule,- (A) in rule 6C,-

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

(ii) after sub-rule (6), the following new sub-rule shall be “(6A) For tax year 2022 onwards, the taxable income attributable to investment in the Federal Government securities shall be taxed at the rate of-

314 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I

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

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

(iii) at the rates provided in Division II of Part I of the First schedule if assets to deposit ratio as on last day of the tax year exceeds 50%.”; (B) in rule 7C, for the expression “to 2021”, the expression “and onwards” shall be substituted; (103) in the Eight Schedule, in rule (6), for the expression “Companies Ordinance, 1984 (XLVII of 1984)”, the expression “Companies Act, 2017 (XIX of 2017)” shall be substituted; (104) in the Tenth Schedule, in rule 10, clauses (d), (f), (g), (h), (j), (m),

(r) and (s) shall be omitted; (105) in the Eleventh Schedule,-

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

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

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

(iii) second proviso shall be omitted;

(b) in rule 3, in sub-rule (1),-

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 315

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

(ii) in clause (a), in the proviso, for the semi colon and the word “and”, a colon shall be substituted and thereafter the following new proviso shall be added, namely:- “Provided further that where benefit of sub-section

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

(c) in rule 6, for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be “Provided that profits and gains accruing from such projects in excess of ten times of tax paid under Rule (2) shall be incorporated by paying tax at the rate of 20% on profits and gains which are in excess of said limit.”;

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

(e) in rule 9, in sub-rule (1), in clause (d), in sub-clause (ii), in the proviso, for the expression “31st day of December, 2020”, the expression “31st day of December, 2021” shall be substituted; and (106) after the Twelfth Schedule, the following new Schedules shall be “THE THIRTEENTH SCHEDULE (See section 61) S. No. Name

(1) (2) 1. any Sports Board or institution recognised by the Federal Government for the purposes of promoting, controlling or regulating any sport or game. 2. The Citizens Foundation. 3. Fund for Promotion of Science and Technology in Pakistan. 4. Fund for Retarded and Handicapped Children. 5. National Trust Fund for The Disabled. 6. Fund for Development of Mazaar of Hazarat Burri Imam.

316 THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 [PART I S. No. Name

(1) (2) 7. Rabita-e-lslami’s Project for printing copies of the Holy Quran. 8. Fatimid Foundation, Karachi. 9. Al-Shifa Trust. 10. Society for the Promotion of Engineering Sciences and Technology in Pakistan. 11. Citizens-Police Liaison Committee, Central Reporting Cell, Sindh Governor House, Karachi. 12. ICIC Foundation. 13. National Management Foundation. 14. Endowment Fund of the institutions of the Agha Khan Development Network (Pakistan listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network. 15. Shaheed Zulfigar Ali Bhutto Memorial Awards Society. 16. Iqbal Memorial fund. 17. Cancer Research Foundation of Pakistan, Lahore. , 18. Shaukat Khanum Memorial Trust, Lahore. 19. Christian Memorial Hospital, Sialkot. 20. National Museums, National Libraries and Monuments or institutions declared to be National Heritage by the Federal Government. 21. Mumtaz Bakhtawar Memorial Trust Hospital, Lahore. 22. Kashmir Fund for Rehabilitation of Kashmir Refugees and Freedom Fighters. 23. Institutions of the Agha Khan Development Network (Pakistan) listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network. 24. Azad Kashmir President’s Mujahid Fund,1972. 25. National Institute of Cardiovascular Diseases, (Pakistan) Karachi. 26. Businessmen Hospital Trust, Lahore. 27. Premier Trust Hospital, Mardan. 28. Faisal Shaheed Memorial Hospital Trust, Gujranwala. 29. Khair-un-Nisa Hospital Foundation, Lahore. 30. Sind and Balochistan Advocates’ Benevolent Fund. 31. Rashid Minhas Memorial Hospital Fund. 32. Any relief or welfare fund established by the Federal Government. 33. Mohatta Palace Gallery Trust. 34. Bagh-e-Quaid-e-Azam project, Karachi. 35. Any amount donated for Tameer-e-Karachi Fund. 36. Pakistan Red Cres-cent Society. 37. Sank of Commerce and Credit International Foundation for Advancement of Science and Technology. 38. Federal Board of Revenue Foundation. 39. The Indus Hospital, Karachi. 40. Pakistan Sweet Homes Angels and Fairies Place. 41. Al-Shifa Trust Eye Hospital. 42. Aziz Tabba Foundation. 43. Sindh Institute of Urology and Transplantation,SIUT Trust and Society for the Welfare of SIUT. 44. Sharif Trust. 45. The Kidney Centre Post Graduate Institute. 46. Pakistan Disabled Foundation. 47. Sardar Trust Eye Hospital, Lahore. 48. Supreme Court of Pakistan - Diamer Bhasha & Mohmand Dams - Fund. 49. Layton Rahmatullah Benevolent Trust (LRBT). 50. Akhuwat.

PART I] THE GAZETTE OF PAKISTAN, EXTRA., JUNE 30, 2021 317 S. No. Name

(1) (2) 51. The Prime Minister’s COVIE)-19 Pandemic Relief Fund-2020. 52. Ghulam Ishaq Khan Institute of Engineering Sciences and Technology (GIKI). 53. Lahore University of Management Sciences. 54. Dawat-e-Hadiya, Karachi. 55. Baitussalam Welfare Trust. 56. Patients’ Aid Foundation. 57. Alkhidmat Foundation. 58. Alamqir Welfare Trust International. 59. Prime Minister’s Special Fund for victims of terrorism. 60. Chief Ministers(Punjab) Relief Fund for Internally Displaced Persons (1DPs) of KPK. 61. Prime Ministers Flood Relief Fund 2010 and Provincial Chief Ministers Relief Funds for victims of flood 2010. 62. Waqf for Research on Islamic History, Art and Culture, Istanbul. Provided that the Federal Government shall have the power to add, amend or omit any entry in this Schedule.”; FOURTEENTH SCHEDULE (See section 100E) RULES FOR COMPUTATION OF PROFIT AND GAINS FOR SMALL AND MEDIUM ENTERPRISES