Ordinance (general), as published 30 June 2021
This is the Ordinance (general) as it stood on 30 June 2021. It runs to 14 pages and contains 3 sections, with 0 amendment footnotes.
What this document is
Published by the Federal Board of Revenue as part of the Ordinance (general) 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every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2021 rather than as originally enacted.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 2,707 words across 3 sections.
What changed since the previous version
Against the version published 30 June 2021, this one has 3 new sections.
New in this version
- section 3, Amendments in the Sales Tax Act, 1990
- section 4, Amendments in the Income Tax Ordinance, 2001 (XLIX of 2001)
- section 5, Amendments in the Federal Excise Act, 2005
The source file
| File name | Tax Laws (Amendment) Ordinance, 2021.pdf |
| Pages | 14 |
| Size | 3.11 MB |
| Text extraction | markitdown |
| Extraction confidence | high |
| Position in this collection | 5 of 10 |
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A note on these figures
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The full text of this version
All 3 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.
3. Amendments in the Sales Tax Act, 1990
In the Sales Tax Act, 1990, the following further amendments shall be made, namely:-
(1) in section 56A, 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.”;
(2) in the Sixth Schedule, in Table-1, in column (1), after serial No. 156 and entries relating thereto in columns (2) and (3), the following new serial Nos. 157 and 158 and corresponding entries relating thereto in columns
(2) and (3) shall be added, namely:- “157. Import of CKD kits for the following electric Respective headings vehicles (4 wheelers) by local manufacturers till the 30th day of June, 2026:- Small cars and SUVs with 50 kwh battery or below; and Light commercial vehicles (LCVs) with 150 kwh battery or below. 158 Goods temporarily imported into Pakistan by Respective international athletes or sportsmen which would headings”; be subsequently taken back by them within 120 days of temporary import
(3) in Eighth Schedule, in Table-I, in column (1), after serial No. 70, the following new serial No. 71 and entries relating thereto in columns (2), (3),
(4) and (5) shall be added, namely:-
71 Following locally manufactured or Respective 1% If supplied assembled electric vehicles (4 heading locally.“; wheelers) till the 30th day of June, and 2026:- Small cars or SUVs with 50 kwh battery or below; and Light commercial vehicles (LCVs) with 150 kwh battery or below
(4) in Twelfth Schedule, under the heading “Procedure and conditions”, in clause (2), after sub-clause (x), the following sub-clauses shall be added, namely:- “(xi) electric vehicles (4 wheelers) CKD kits for small cars or SUVs, with 50 kwh battery or below and Light Commercial Vehicles (LCVs) with 150 kwh battery or below till the 30th day of June, 2026; (x electric vehicles (4 wheelers) small cars or SUVs, with 50 kwh battery or below and Light Commercial Vehicles (LCVs) with 150 kwh battery or below in CBU condition till the 30th day of June, 2026; and
(xiii) electric vehicles (2-3 wheelers and heavy commercial vehicles) in th CBU condition till the 30 day of June, 2025.“.
4. Amendments in the 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 152,-
(a) after sub-section (1D), the following new sub-section shall be inserted, namely: - “(1 DA) Every banking company maintaining a Foreign Currency Value Account (FCVA) or a non-resident Pakistani Rupee
Value Account (NRVA) of a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) shall deduct tax from capital gain arising on the disposal of debt 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
(b) in sub-section (1E), for the expression “sub-section (1D)”, the expression “sub-sections (1D) and (iDA)” shall be substituted;
(2) in section 231B, after sub-section (2), the following new sub-section shall be inserted, namely:- “(2A) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax from the buyers of locally manufactured motor vehicles who subsequently sell it within ninety days of delivery of such vehicle whether prior to or after registration, at the rates specified in Division VII of Part IV of the First Schedule: Provided that no collection of advance tax under this sub-section shall be made after the 30th day of June, 2021.”;
(3) in section 236C, 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 if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or 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“; in section 236K, in sub-section (2), for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:- “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.”, in the First Schedule,- in Part I, in Division IIA, in the Table, in column (1), against serial not in heading of column (6), after the expression “Tax Year 2021”, the words “and onwards” shall be inserted. 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 LCVs with 150 kwh battery or below shall be 1%:”; in Part Ill, in Division II, in clause (3A), for the expression “sub- section (1D)”, the expression “sub-sections (1D) and (iDA)” shall be substituted; in Part IV,-
(i) 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 S. No. Engine capacity Tax
(1) (2) (3) Up to 1000cc Rs.50,000 1000cc to 2000cc Rs.100,000 2000cc and above Rs.200,000 and
(ii) in Division XIV, after the Table, following new proviso shall be added, namely:- “Provided that the rate of advance tax on sale to distributors, dealers or wholesalers of fertilizer shall be 0.25%, if they already are or get themselves registered under the Sales Tax Act, 1990 within sixty days of the promulgation of the Tax Laws (Amendment) Ordinance, 2021.”;
(6) in the Second Schedule,-
(a) in Part I, - in clause (78), for the expression “citizens of Pakistan and foreign nationals residing abroad, foreign association of persons, companies registered and operating abroad and foreign nationals residing in Pakistan”, the expression “non- resident individuals, non-resident association of persons and no-resident companies” shall be substituted; in clause (79), for the expression “citizen of Pakistan residing abroad”, the expression “non-resident individual holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC)” shall be substituted; in clause (126M), in the proviso, for the figure “2018”, the figure “2022” shall be substituted; and
(iv) after clause (147), the following new clause shall be added, namely:- “(148) Any income derived by Islamic Naya Pakistan Certificates Company Limited (INPCCL).”;
(b) in Part II, - (I) 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; after clause (5AA), the following new clauses shall be inserted, namely: - “(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. (SAC) 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.”;
(iii) in clause (24C),- (I) after the expression “sub-dealers” the expression wholesalers and retailers of fast moving consumer goods, fertilizer,“ shall be inserted; I i)
(II) for the full stop at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely: - “Provided that the benefit of reduced rate shall be available to those dealers, sub-dealers, wholesalers and retailers of above sectors who already are or get themselves registered under the Sales Tax Act, 1990 within sixty days of the promulgation of the Tax Laws (Amendment) Ordinance, 2021.”;
(iv) in clause (24D),- after the expression “sub-dealers” the expression wholesalers and retailers of fast moving consumer goods, fertilizer,“ shall be inserted; for the full stop at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely: - “Provided that the benefit of reduced rate shall be available to those dealers, sub-dealers, wholesalers and retailers of above sectors who already are or get themselves registered under the Sales Tax Act, 1990 within sixty days of the promulgation of the Tax Laws (Amendment) Ordinance, 2021.”;
(c) in Part Ill, after omitted clause (16), 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:- “(17) The tax payable by cotton ginners on their income 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: Provided that the tax so payable shall be final tax in respect of their cotton ginning and oil milling activities only:: I I
(d) in Part IV,- in clause (11A), after sub-clause (xxxviii), the following shall be added, namely:- “(xxxix) Islamic Naya Pakistan Certificates Company Limited (INPCCL).”; in clause (56), after sub-clause (iii), the following new sub- clause shall be inserted, namely:- “(iiia) Goods temporarily imported into Pakistan by international athletes which would be subsequently taken back by them within one hundred and twenty days of temporary import”; after the omitted clause (79), the following new clause shall be inserted, namely:- “(79A) The provisions of clause (b) of sub-section (1) of section 153 shall not apply to payments received by National Telecommunication Corporation against provision of telecommunication services including ancillary services specified in sub-section (3) of section 41 of the Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996).”; after clause (111A), the following new clause shall be inserted, namely:- “(111AB) The provisions of section 100BA and rule 1 of the Tenth Schedule shall not apply to non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) maintaining a Foreign Currency Value Account (FCVA) or Non-resident Pakistani Rupee Value Account (NRVA) with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan.”;
for clause (112A), the following clause shall be substituted, namely:- “(112A) The provisions of section 231A, 231AA and 236P shall not apply to the holders of Foreign Currency Value Account (FCVA) or Non-resident Pakistani Rupee Value Account (NRPRVA) in respect of these accounts only.”; for clause (114A), the following clause shall be substituted, namely:- “(114A) The provisions of clause (ae) of sub-section
(1) of section 114 and section 181 shall not apply to a non- resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) maintaining a Foreign Currency Value Account (FCVA) or a Non-resident Pakistani Rupee Value Account (NRVA) with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan: Provided that this clause shall not apply if the person referred in this clause has Pakistan-source taxable income other than the following; namely:-
(a) profit on debt on FCVA or Non-resident Pakistani i Rupee Value Account (NRVA). profit on debt earned on Government of Pakistan (GOP) securities either conventional or Shariah Compliant where investment has been made from proceeds of FCVA or NRVA; capital gain on disposal of immovable property acquired from proceeds of FCVA or NRVA; capital gain on disposal of securities traded on Pakistan Stock Exchange and units of mutual
funds that are acquired from proceeds of FCVA or NRVA; or
(e) dividend income from securities traded on Pakistan Stock Exchange and mutual funds that are acquired from proceeds of FCVA or NRVA.“; and
(vii) after clause (117), 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 Maya Pakistan Certificates Company Limited (INPCCL) as a recipient. (119) The provisions of section 153(1)(a) shall with ft effect from the day of July, 2020 not apply to distributors, dealers, wholesalers and retailers of locally manufactured mobile phone devices as withholding agent.”, and
(7) in the Seventh Schedule, in rule (7C), for the expression “to 2021”, the expression “and onwards” shall be substituted.
5. Amendments in the Federal Excise Act, 2005
In the Federal Excise Act, 2005, the following further amendments shall be made, namely:-
(1) in the First Schedule, in Table-I, in column (1),- 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; and against serial No. 55B, 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. DR. ARIF ALVI President SAM5AT 19-TIDAR Ay,f, Section Officer Alinistry Of Law & Government of PahL Isizmabaci FARRUKH ALI MUGHAL Solicitor General