2 of 92023-06-30

Finance Act, as published 30 June 2023

This is the Finance Act as it stood on 30 June 2023. It runs to 9 pages and contains 3 sections, with 0 amendment footnotes.

What this document is

Published by the Federal Board of Revenue as part of the Finance Act collection. A consolidation of this kind folds every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2023 rather than as originally enacted.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 1,482 words across 3 sections.

What changed since the previous version

Against the version published 30 June 2022, this one has 1 new section and 10 that no longer appear.

New in this version

section 1, Short title and commencement

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 1A, Amendment of Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961)
section 2B, Amendments of the Members of Parliament (Salaries and Allowances) Act, 1974 (XXVII of 1974)
section 3, Amendments of the Sales Tax Act, 1990
section 3A, Amendment in the Export Development Fund Act, 1999 (VI of 1999)
section 5, Amendments of Income Tax Ordinance, 2001 (XLIX of 2001)
section 6, Amendments of the Federal Excise Act, 2005
section 7, Amendment in Finance Act, 2018 (XXX of 2018)
section 8, Capital value tax 2022
section 38, Alternative Dispute Resolution
section 47A, Alternative Dispute Resolution

The source file


File name	`20232231921422957Finance(Supplementary)Act,2023.pdf`
Pages	9
Size	1.82 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	7 of 9

SHA-256 of the source PDF:

9edadabc50ab6fb0a33126674b5500b6a9c853637dd591038027e357cec93331

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 3 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 (Supplementary) Act, 2023.

(2) lt shall, unless specified othenvise, come into force at once

2. Amendments in the Sales Tax Act, 1S90

In the Sales Tax Act, 1990,

the following further amendments shall be made, namely:-

(A) in section 3, -

(i) for the word “seventeen”, wherever occurring, the word “eighteen”

shall be substituted; and

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

(a) before the existing proviso, the following new proviso shall

be inserted, namely: -

“Provided that the Federal Government may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, declare that the tax on

goods specified in the Third Schedule shall be collected and

paid at such higher rate or rates on the retail price thereof,

as may be specified in the said notification:“; and

(b) in the existing proviso, after the word “Provided”, the word

“further” shall be inserted;

(B) in the Eighth Schedule, in column (’1),-

(i) against serial number 47, in column (4), for the expression “’17%”,

the expression “18%” shall be substituted; and

(ii) against serial number 56, in column (4), for the expression “’17%”,

the expression “18%‘’ shall be substituted; and

column (2), -

(i) against category E, in column (3), for the expression “17%”, the

expression “18%” shall be substituted,

(ii) against category F, in column (3), for the expression “17o/o”, lhe

expression “18%” shall be substituted; and

(iii) against category G, in column (3), for the expression “’17%”, the

expression “25ok” shall be substituted.

Amendments in the lncome Tax Ordinance, 2001 (XLIX of 2001). - ln

the lncome Tax Ordinance, 2001 (XLIX ot 2001), the following further amendments shall be made, namely: -

(a) in section 37, afler sub-section (5), the following new sub-sections shall be

added, namely: -

“(6) The person acquiring a capital asset, being shares of a company, shall deduct advance adjustable tax from the gross amount paid

as consideration for the shares at the rate of ten percent of the fair market

value of the shares which shall be paid to the Commissioner by way of

credit to the Federal Government, within fifteen days of the payment.

(7) Notwithstanding the provisions of section 68, the value of shares, for the purpose of sub-section (6), shall be the fair market value, as prescribed for sub-section (4) of section 101A, without reduction of

liabilities.

(8) The Commissioner may, on application made by the person acquiring of the shares, and after making such inquiry as the Commissioner thinks fit, allow to make the payment, without deduction of

tax or deduction oftax at a reduced rate.

(9) The provisions of sections 161 ,162, entry No. 15 of the Table in section 1 82, clause (c) of sub-section (1) of section 191 and

section 205 shall mutatis mutandis apply to the tax deductible and payable

under this section.

(10) The person disposing of the capital asset, being shares of a company, shall furnish to the Commissioner within thirty days of the transaction of disposal, the prescribed information or documents, in a

statement as may be prescribed:

Provided that the Commissioner may, by notice in writing, require

the said person, to furnish information, documents and statement within a

period of less than thirty days as specified in the notice.“;

(b) in section 37A, in sub-section (1), 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 this section shall not apply to the disposal of

shares of a listed company made otherwise than through registered stock

exchange and which are not settled through NCCPL and the provisions of section 37 shall apply on such disposal of shares of a listed company,

accordingly.“; and

“236CB. Advance tax on functions and gatherings. - (’1) Every prescribed person shall collect advance tax at the rate specified in Division

Xl of Part lV of the First Schedule on the total amount of the bill from a

person arranging or holding a function in a marriage hall, marquee, hotel,

restaurant, commercial lawn, club, a community place or any other place

used for such purpose, subject to such conditions or limitations as may be

prescribed.

(2) Where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance tax on the payment for such food, service or facility at the rate specified in Division Xl of Part lV of the First Schedule from the person arranging or

holding the function.

(3) The advance tax collected under sub-section (1) and sub-

section (2) shall be adjustable.

(4) ln this section -

(a) “function” includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering held

for such purpose; and

(b) “prescribed person” includes the owner, a lease- holder, an operator or a manager of a marriage hall,

marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such

purpose.“;

(d) in the First Schedule, in Part lV, after Division XA, the following new

Division shall be added, namely: -

“Division Xl

Advance tax on functions and gatherings

The rate of tax to be collected under section 236C8 shall be 10%.“.

4. Amendments in the Federal Excise Act, 2005

ln the Federal Excise

Act, 2005, in the First Schedule, the following further amendments shall be made namely: -

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

(i) against serial numbers 4, 5 and 6, in column (4), for the word

“Thirteen”, the word “Twenty” shall be substituted;

(ii) against serial number 9, -

(a) in column (2), for the words “six thousand six hundred and sixty”, the words “nine thousand” shall be

substituted; and

(b) in column (4), for the words “six thousand five hundred”, the words “sixteen thousand five hundred”

shall be substituted;

(iii) against serial number 10, -

(a) in column (2), for the words “six thousand six hundred and sixty”, the words “nine thousand” shall be

substituted; and

(b) in column (4), for the words “two thousand and fifty”, the words “five thousand and fifty” shall be substituted,

(iv) against serial number 13, in column (4), for the words “one rupee and fifty paisa”, the words “two rupees” shall be

substituted;

(v) after the omitted serial number 58, the following new serial number and entries relating thereto in columns (2), (3) and

(4) shall be added, namely: -

’59. Sugary Fruit juices, syrups and squashes, waters whether or not

Respective

heac,,,9s

Ten percent of price.“; and

i-etail

containing added sugar or artificial sweeteners excluding mineral and

aerated waters

(vi) after Table-1,-

(a) in the Restriction-3-[t/linimum Price, for the words

“forty-five”, the word “sixty” shall be substituted; and

(b) after Restriction-3-Minimum Price, the following shall

be added, namely:-

“(4) Rate of duty - Notwithstanding the limitation on the retail price under column (2) against

serial number 9, manufacturers whose brands were liable to duty at the rates specified in column (4) against serial number 9, one day before the date of amendment (through a notification, an Ordinance or an Act of padiament), shall continue to collect and pay the duty against serial number I at the amended rates specified in column (4) (through a notification, an Ordinance or an Act of parliament).“; and

(B) in Table-ll, in column (1), against serial number 3, in column (2), in clause (b), for sub-clause (ii), the following shall be

substituted, namely:-

’(ii) Club, business

Two hundred and fiftY

thousand ruPees

SeventY-five

(l) thousand rupees

(ll) One hundred and fifty thousand rupees

One hundred and fiftY

thousand rupees.“.

and first class air tickets issued on or after the date of commencement the of (Supplementary) Act,

Finance

(a) (b)

(l) Middle East and Africa

(ll) Europe

IATA Traffic Conference Area 3 (Far East, Australia, New Zealand and Pacific lslands)