Mini Budget and Finance Supplementary (Second Amendment) Bill ,2019

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AsadNazir
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Mini Budget and Finance Supplementary (Second Amendment) Bill ,2019

Post by AsadNazir » Wed Jan 23, 2019 5:22 pm

Mini Budget Presented on 23-01-2019 (Source: The News)

The government has proposed reduction of taxes from 39 percent to 20 percent on small and medium enterprises, agricultural, and housing loans.

He said withholding tax for filers is being withdrawn, while non-filers can purchase cars upto 1300 CC.

Asad Umar said tax on marriage halls of 500 square feet will be reduced from 20,000 to 5,000 rupees.

Finance Minister presented the Finance Supplementary (Second Amendment) Bill, 2019 approved by the Federal Cabinet earlier today.

He said it was not a mini-budget but rather a set of economic reforms.

The Finance Supplementary (Second Amendment Bill), 2019 has been laid before the National Assembly by Finance Minister Asad Umar.

It envisages measures to boost manufacturing and exports, encourage low-cost housing and facilitate agricultural financing to promote economic activities, Radio Pakistan reported.

He said a revolving fund of Rs 5 billion will be allocated to provide interest free loans for the construction of small houses.

Import duty on newsprint has also been abolished.

Withholding tax on banking transactions ( deposits/withdrawals) for income tax filers has been abolished

Exemption on withholding tax on shares transactions.

Withholding tax on banking transactions ( deposits/withdrawals) for income tax filers has been abolished

Exemption on withholding tax on shares transactions.

He said special economic zones will be formed keeping in mind the interest of CPEC.

He also announced increase in tax for vehicles over 1800CC, while tax for low priced phones will be cut however, it will remain the same for expensive phones.


Finance SupPlementary
(Second Amendment)
Bill ,2019


Further to amend the tax laws:
WHEREAS it is expedient further to amend certain laws relating to taxes and duties and
for the matters connected therewith and ancillary thereto;
It is hereby enacted as follows:
1 . Short title and commencement.- (1) This Act shall be called the Finance
Supplementary (Second Amendment) Act, 2019'
(2) lt shall come into force at once unless otherwise provided in any of the
provisions of this Act.
2 Amendment of Customs Act, 1969 (lV of 1969)'- ln the Customs Act' '1969 (lV
of 1969), the following further amendments shall be made which shall come into force at
once except clause 2 (2) (ii) which shall take effect from thirty first day of March' 2019'
namely; -
(1) ln the First Schedule, in chapter 99,in sub-chapter-Vll, in column(1)' for
the PCT code 9925 and the entries relating thereto in columns (2) and (3)'
the following shall be substituted, namely: -
"9925 (A) Adificial kidneys, hemodialysis machines' 0": and
hemodialyzers, A.V fistula needles, hemodialysis
fluids and powder, blood tubing tines for dialysis'
reverse osmosis plants for dialysis, double lumen
catheter for dialysis, cathelers for renal failure
patients, peritoneal dialysis solution and cardiac
I
catheters
(B) Following items and appliances for Ostomy
USE -
1. I aseplate/Stoma Wafer/Flange.
2. Ostomy (Colostomy/lleostomy/ Urostomy)
bags(All type)
3. Ostomy (Colostomy/lleostomy/ Urostomy) Paste
4. Ostomy (Colostomy/lleostomy/ Urostomy) Belt
5. Ostomy (Colostomy/lleostomy/ Urostomy)
Deldorizers
6. 3stomy (Colostomy/ lleostomy/ Urostomy) Strip
Paste
7. Stoma Powder/Ostomy Powder
icolostomy/llleostomy/Urostomy Powder/
lleostorrrY/UrostomY Powder)
8. Ostomy (Cotostomy/lleostomy/ Urostomy) Skin
Barrier SPraY and WiPe
9. Ostomy (Colostomy/lleostomyi Urostomy)
Adhesive Remover SPray and WiPe
1 ' . Ostomy (Colostomy/lleostomy/ Urostomy)
L4ouldable Ring
1:1. Ostomy (Colostomy/lleostomy/ Urostomy)
E astic Tape
l
13. ostomy (Colostomy/lleostomy/ Urostomy)
Barrier Cream
14. Ostomy (Colostomy/lleostomy/ Urostomy)
Protective Sheets
'15. Ostomy (Colostomy/lleostomy/ Urostomy) Cap
16. Ostomy (Coiostomy/lleostomy/ Urostomy)
Protective Seal
17. Plastic Clips for closing the Ostomy bags'
18. Liquid washers and wipes for cleaning anr
washing Peristomalskin
19. Night Drainage Bag
20. CystoscoPe
21. Lithotripter
22. ColonoscoPe
23. SigmoidoscoPe
24. Laparoscope
25. SupraPubic Cystostomy Set
26. Ryles Tube (Nasogastric Tube)
27. Foley's Catheter
28. EndoscoPe (Video EndoscoPes)
29. Linear Cutter/StaPler
30. Circular Stapler
31. Right Angle Cutter/Stapler
32. L aparoscopic Hand lnstruments:
a) Dissector
b) GrasPer
c) Scissors
d) CIiPPer
e) Hook
0 Retractors
g) Needles Holders
h) Knot Pusher
i) T,rlescoPe (0", 30o)
33. Urological Endoscopic lnstruments
(a) Resectoscope (Rotating and Fix)
(b) OPtical Urethrotone
(c) Telescope (0", 30", 750)
(d) TurP Resecting LooPs
(2) ln the Fifth Schedule, -
(i) in Part-Vll, in Table-B, in column (1)' the following amendments
shall be made, namely: -
(a) against serial numbers '15 and 16' in column (4)' for the
figure "5", the figure "3", shall be substituted; and
(b) against serial number 18, in column (4)' for the figure "5" the
figure "O', shall be substituted'
,l
shall be added, namely: -
" Pa rt-Vlll
lmports of inpuG/raw materials of lndustrial Sector
TABLE
lf imported bY
manufacturers of
Footwear,
registered under
the Sales Tax Act,
1990
(viii) Other
(ix) Shoe lasts
(x) Other
(xi) Other
(x l) lvlachinery for making or
4005.9900 114/o
8453.2000 0%
)
Customs Conditions
Duty (%)
PCT
S. No Description Code
(4 (s) )
(3) (1) (21
Footwear Sector
2902.3000 30/" (0 Toluene
2914 1200 3%
Butanone (methyl ethyl (i)
ketone)
(iii) Other 3207.1090 3%
(iv) Other 20%
(v) Other 3208.9090 20%
3403.9910 30/" (vi) l\,4ould re ease Preparations
3506.91 10 (vi) Shoe adhesives
164
11
3506.9190
4005.1090
(ii) After Part-Vll, as amended aforesaid, the following new "Part-Vlll",
1
3208.1090
16ak
3e26.e060
I
16%
2
8480.7100 o%
2915.1 100 160/a
2915.1290 3%
repairing footwear
(x i) Parts
(xrv) lnjection or compression
Tanners:
types
I Formrc acid
( i) Other
110h
3ak
o/" 11
3%
16%
11 %
11
preparations based thereon
2933.9990
3202 1004
3202.90s0
3204.1300
3204.9000
3B0s 9200
(Lx)
3809.9300
3906.9020
3909.5000
8453.1 000
(iri) Other
organic tanning
(v) Other
Of a kind used in the
(, Acrylic bind 3rs
(vii) Of a kind used in the Paper
leather or lif.e industries
(xl PolYurethar es
substances
and (v ) Basic riyes
(vri) Other
or like induslries
(v) Synthetic
20vo
0%
0%
lf imported bY
Tanners,
registered under
the Sales Tax ,\ct,
1990
(xi) Machinery for preparing,
tanning or working hides,
sklns or leather
(t
l
l
l
-- 184?liooot-ov"
l
l
(x ri) Parts
3
(i) Magnesium oxide 2 51 9.901 0
Leather Sector:
( i) Other
(i 2915.1210 0ak i) Sodium formate
3202.9010 200/a
(iv) Tanning substances,
tanning preparations based
on chromium sulPhate
3204.1 100
Disperse dyes a
preparations based thereon
(v) nd
'16%
(v 3212.1000 11% ) StamPing foils
3403.1110 16%
(vii) Of a kind used in
leather or like industries
the
lf imported by
manufacturers of
leather sector,
registered under
the Sales Tax Act,
1990
Ao/o
0%
3403.91 10 16%
(vli) Of a kind
leather or
including fat Iiquors
used in the
like industries
4
4002.1 100 Oo/o
4002.1900 0%
4016. 1 090
Gloves
(i i) Other
(i) Latex
(, ) Other
5%
lf imported bY
Gloves, registered
under the Sales
Tax Act, 1990
1,4 Macfrines for reeling,
unreeling, folding, cutting or
pinking textile fabrics
8451.5000 a'/"
8453.9000 0%
I
manufacturers of
l
2836.9990
L
8452.2900 00k (v) Other
(v 8477 3090 0% ) Other
9606.2920 2Ao (vil) Buttons
(vr 96C6.2990 20% ) Other
Furniture;
lf imported bY
manufacturers of
Furniture
registered under
the Sales Tax Act,
1990
8465.9190 0% Other
eramrcs:
3207 .2000 3% glazes, engobes (slips) and
similar PrePa'ations
(,:namels and (i) Vitrifiable
6903.1000 3"/"
lf imported
manufacturels
registered under
the Sales Tax Act,
1990
by
6903.2090 3%
Containing t Y weig
than 50 % of graphite or
other carbon or of a mixture
of these Products
(ii)
(iii) Other
ht more
B
3506.9190 5%
Diapers/ SaritarY
(i) Other
Na pkins:
3906 9090 50k
E
I
t
6
I
t
I
l
L]
I lf imported bY
I
I manufacturers of I
diapers/sanitary
1
l
I
r,r otner
(ii) Of polymers of ethylene 3920.1000 160k
(v) Of other Plastics 3921 1900 164/a
(v) Of polymers of ethylene 3923.2100 5%
(vi) Weighing not more lhan 25
gim 2
5603.1 100 11'/"
(vii) Weighing more than 25
g/m2 but not more than 70
gtm2
5603.9200 160/a
(vii) Weighing more than 70
g/m2 but not more than 150
gtm2
110
I Home Appliance Sector:
1i) CycloPentane 2902.1910 o%
(i) Tetrafluoroethane 2903.3930 o'/.
(it) Acrylonitrile butadiene
styrene (ABS) copolYmers
3903.3000 oo/"
iiv) other poly-ethers 0o/o
(v) lnsulation taPe double sided 3919.1010 0%
(vl) Adhesive tape 7607 1910 o%
napkins registered
under the Sales
Tax Act, 1990,
subject to annual
q uota
determination and
verification by the
lnput Output Coefficient
Organization
(IOCO) and
certification bY the
Engineering
Development
Board.
li imported bY
manufacturers of
home appliance
sector, registered
under the Sales
Tax Act, 1990,
subject to annual
I
L
5603.9300
3907.2000
8414 3010 ov,,
CFC gases
(vi) Used with HCFC and non8414.9010 a% (vil) Of machines
8414 1000 an(i 8414.3010
of heading
8501.4090 160k
tube cn plate lYPes)
(x) lr/otors of an outp
exceeding 37 5 W
(xi) Other
(ix) EvaPorators aoll bond / fin /
ut not
8531 .1 000 0%
similar aPParatus
larms and (xii) Burglar or fire a
9030.8900 0% (xiri) Other
9032.'1 01 0 a% refrigerators, deeP freezers
and air conditioners
kir d used in (xiv) Of a
9032.1090 16% (xv) Other
10 infant Formula:
lmports bY
manufacturers of
infant folmula
milk, registered
under the Sales
Tax Act, 1990,
1901 .9090 5%
quota
determination 2nd
veriflcation bY Ihe
lnput Output Coefficient
Organization
(roco).
Other
l0
B418.ee 10 l o%
I
1 asor.rooo ] ov"
I
I
I
L- _.1
subject to annual
quota
determination and
verification by the
lnput Output Coefficient
Organizatlon
(roco).
11 chemical Manufacturing
sector:
lf imported bY
manufacturers of
chemicals,
registered under
the Sales Tax Act,
1990',.
(i) o-Xylene 2902.4100 0%
12
(ii) Octanol (octyl alcohol) and
isomers thereof
2905.1600 0%
Other 381 2.3900
lf importcd bY of
PVC / Plastic
manufacturers,
registered under
the Sales Tax Act,
1990',.
3. Amendments of the Sales Tax Act, 1990.- ln the Sales Tax Act, 1990, the
following further amendments shall be made, namely:-
(1) after section 67, the following new section shall be inserted' namely:-
II
'67A. P3yment of refund through promissory notes- (1)
Notwithstandinll anythlng contained in section 67' the sales tax refurrds
payable under this Act may be paid through promissory notes' instead of
paying sales t,lx refunds through cheques or electronic advice to State
Bank of Pakistan, in the mode and manner and carrying such features as
laid down in th,l Tenth Schedule to this Act'
(2) lhe refund under sub-section (1) shall be paid in the
aforesaid manner to the claimants who opt for payment in such manner'":
and
(2) in the Sixth Schedule'-
(a) in Tabk)-1, in column (1),-
(i) against serial number 110' in column (2)' after the \'/ord
'lstamabad", the expression "for the period ending on the
30th June, 2o23" shall be inserted;
(ii) for serial numbel 1 17 and entries relating thereto in columns
(2) and (3), the following shall be substituted' namely:-
"117
(iii) serial number 1'18 andentries relating thereto in columns (2)
and (3) shall be omitted; and
99.25": Appllances and items requl
ostomy procedures as specified in the
Chapter 99 of the First Schedule to
the Customs Act, 1969, subject to
same conditions as specified therein
red for
1).
l
(iv) after serial oumber 149 and the entries relating thereto in
columns (2) and (3). the following new serial number and the
entries shall be added respectively, namely:-
'150 Plant and machinery excluding
consumer durable goods and
otface equapment as imported by
greenfield industries, intending to
manufacture taxable goods,
during their construction and
installation period subject to
conditions noted below and
issuance of exemption certificate
by the Commissioner lnland
Revenue having jurisdictiorl:-
Conditions:
(a) the importer is registered
under the Act on or after the flrst
day of July, 2019; and
(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
Chapters
and B5';
84
I
@
another industrial undertaking ln
Pakistan
(b) in Table-:1, in the Annexure, in column (1),-
(i) against serial number 7, in column (2), in the entry at seral
number 1, for the word "etc", the expression ". This
exemption in relation to renewable energy shall remain in
fo ce up to the 3oth June, 2023" shall be substituted; and
(i0 a-cainst serial number 144, in column (2), for the expressien
"etc.", the expression "as imported on or before the 30th
Jt ne, 2023" shall be substituted,
(3) ln the Ninth Sclredule, in the Table, in column (1), for serial number 2 and
entries relating thereto in columns (2), (3), (4) and (5), the following sl'all
be substituted, namelY:-
Cellular mobile phones
or satellite phones to be
charged on the basis of
import value pe set, or
equivalent va ue in
rupees in case of supply
by the manufacturer, at
the rate as indicated
against each category:-
A. Not exceeding US$
"2
Rs. '150 Rs. 150
I
@
30
B. Exceeding US$ 30
but not exceeding l,JS$
100
C. Exceeding US$ 100
but not exceeding US$
200
D. Exceeding US$ 200
but not exceeding uS$
350
E. Exceeding US$ 350
but not exceeding US$
500
F. Exceeding US$ 500
Rs. 1,470
Rs. '1,870
Rs. 1,930
Rs.6,000
Rs. 10,300
Rs. 1,470
Rs. 1,870
Rs. 1,930
Rs.6,000
Rs. 10,300 "; and
(4) after the Ninth Schedule, amended as aforesaid, the following new
Schedule shall be added, namely:-
"THE TENTH SCHEDULE
[See seclion 674]
1. Application. This Schedule applies to the sales tax refund
promissory notes to be issued in lieu of payable refunds as provided in section
674.
2. Definitions.- ln this Schedule, unless there is anything repugnant
in the subject or context,-
I
(.,
(1) "note" or 'promissory note' means sales tax refund promisson/
note; and
(2) "promiss(iry note office" or "note office" means an office
establishr)d in the Board for issuance' registration' transfer' r€-
issuance redemption and handling other matters in relation to the
notes.
3. lssuanco and printing.- (1) The promissory notes shall be issued
by the Note Office in lieu of sales tax refunds as found admissible under the
sales Tax Act, 1990, t'r the refund claimants'
(2) The notes shall be printed by Pakistan Security Printing
Corporaiion with security features and in lhe form as the Board may
determir e.
4. Features of promissory notes'- (1) The maturity period of the
promissory notes sharl be threo years from the date of issuance'
(2) The promissory notes shalt be issued in multiples of one hund''ed
thousand RuPees.
(3) The promissory notes shall bear annual simple profit at ten per cent
and sh.ll be redeemable after the period of maturity'
(4) The pr()missory notes shall be redeemable before maturity only at
the option of the Board along with simple profit payable at the time
of redelnption.
(5) The promissory notes shall be traded freely in the counlry's
secondary markets.
l6
(6) The promissory notes shall be approved security for calculating the
statutory liquidity reserve.
(7) The promissory notes shall be accepted by the banks as collateral.
(8) There shall be no compulsory deduction of Zakaf against the
promissory notes and sahib-e-nisab may pay Zakat voluntarily
according to Shaflah.
5 Transfer of notes. - The notes shall be transferable only in the
manner provided hereunder:-
(a) lt shall be transferable by endorsement and delivery like a
promlssory note Payable to order;
(b) no endorsement of a note shall be valid unless made by the
signature of the holder or his duly constituted attorney or
representative inscribed on the back of the note itself;
(c) no writing on a note shall be valid for the purpose of
negotiatlon if such wliting purports to transfer only a part of
the amount denominated bY the note;
(d) The note office may decline to accept a note endorsed in
blank for any purpose unless the endorsement in blank is
converted into that in full before presentation'
6. Payment on redemption.' (1) When a note becomes due for
payment, it shall be presented al the note office by the holder'
l7
(2) On redemption, the profit on the notes shall be paid aiong with the
face value, in the form of a crossed cheque drawn on the State
Bank of Pakistan.
(3) The ch'lque shall be signed by the incharge of note office and
another signatlry as appointed by the Board'
(4) The prircipal amount along with the profit shall be debited to the
revenue accoLrnt "802368-Sales Tax Refund"
7 Procedure when a note is lost etc- (1) The procedure to be
followed for the issuo of a duplicate note in place of a note which is claimed to
havebeenlost.stol€}n,destroyed,mutilatedordefacedeitherWhollyorinpart'
shall, rnufarls mutanCis, be the same as laid out in respect of the promissory
note in the Public Debt Rules, 1946
(2) ln caso of an execulant being unable to write the procedure as
provided in the Publi: Debt Rules, 1946, shall be folowed "'
4.Amendmentofln(;omeTaxOrdinanco,XL|Xof2O0l-lnthelncomeTax
Ordinance, 2001 (XLIX of ilOO'1), the following further amendments shall be made uhich
shall come into force at onrre except clauses 4(1z)(AXb)' 4(12X8) and 4(12)(CXf) \'hich
shall take effect from the first day of July, 2019, namely:-
(1) in section 5,\, in sub-section (1), for the expression "yeat 2017 and
onwards", tho expression "years 2017 to 2019" shall be substitutedi
\2) in section 37A, in sub-section (5), for the full stop at the end a colon shall
be substitutr)d and thereafter the following proviso shall be aclded'
namelylliJ
"Provided that so much of the loss sustained on disposal of
securities in tax year 2019 and onwards that has not been set off
against the gain of the person from disposal of securities
chargeable to tax under this section shall be carried forward to the
following tax year and set off only against the gain of the person
from disposai of securities chargeable to tax under this section, but
no such loss shall be carried forward to more than three tax years
immediately succeeding the tax year for which the loss was first
computed."l
(3) in section 49, after sub-section (4), in the proviso, for the word "licenses",
the expression ", licenses and renewal of the spectrum and licenses" shall
be inserted.
(4) after section 99A, the following new section shall be inserted, namely:-
"998. Special procedure for small traders and
shopkeepers - Notwithstanding anything contained in this
Ordinance, the Federal Government may' by notification in the
official Gazette, prescribe special procedure for scope and payment
of tax, filing of return and assessment in respect of such small
traders and shopkeepers, in such cities or territories, as may be
specified therein ";
(5) in section '123, after sub-section (1), the following new sub-section shall be
inserted, namelY:-
l9
(6)
(7\
"('lA) Where an offshcre asset of any person not decla[ed
earlier, is discovered by the Commissioner or any department or
agency lf the Federal Government or a Provlncial Government' the
Commissioner may at any time before issuing any assessment
order under section 121 or amended assessment order under
section 122, issue to the person a provisional assessment order or
provisional amended assessment order, as the case may be' for
the last completed tax year of the person taking into account the
offshoft ) asset discovered'";
in section '148 in sub-section (8), clause (a) shall be omitted'
in section '165
-
(B)
in sub-liection (1),-
(a) 'or the word "monthly"' wherever occurring' the lvord
'biannual" shall be substituted:
(b) for the word "lnonth", wherevcr occurring' the word "halfYear" shall be substituted; and
for sut-seclion (2) the fotlowing shall be substituted' namely:-
"(2) Every prescribed person collecting tax under Division ll
of this Part or Chapter Xll or deducting tax under Division lll of this
Part of Chapter Xll shall furnish statements under sub-section ('1)
as per the following schedule, namely:-
(a) in respect of the half-year ending on the 30rh June' on
or before the 31'tday of JulY,
(A)
t0
(b) in respect of the half-year ending on the 31si
December, on or before the 31st63y of January"i and
(C) after sub-section (2A), the following new sub-section shall be
inserted, namelY:-
"(28) Notwithstanding anything contained in this section, the
Commissioner as he deems fit, may by notice in writing, require any
person, collecting or deducting tax under this Ordinance, to furnish
a statement for any period specified in the notice within such period
of time as may be specified in the notice.",
(8) in section 227C,-
(A) after clause (b), in the first proviso,-
(a) for clause (i), the following shall be substituted, namely'-
'10 locally manufactured motor vehicie having engine
capacity not exceeding 1300 CC; locally
manufactured rllotorcycle, motorsycle rikhshaw and
rikhshaw: locally manufactured agricultural tractor;';
(b) in clause (ii), after the word "Pakistanis", the words "or a
non-resident Pakistani cltizen holding international passport"
shall be inserted; and
(B) in the second proviso, in clause (ii), after the word "Pakistanis" the
words "or a non resident Pakistani citizen holding international
Passport" shall be inserted;
(9) section 230E shall be omitted;
lI
(10) in section 2331\, after sub-section (2), the following new sub-section shall
be added namely:-
"(3)" Ths section shall not apply from the firsl day of February'
2019.":
(11) in the First Scfedule,-
(A) in Part I in Division llA, in the Table' in column (1)'-
(a) against S. No' 1 ,-
( ) in column (3), for the figure "0"' the figure "4" shall be
substituted; and
(ii) in columns (5) and (6)' for the corresponding figures
"3' and "2", the figure "4" shall be substituted; and
(b) rrgainst S. No' 2', in column (5)' for the figure "1" the fiqure
"0" shall be substituted;
(B) in Part ll' in the proviso, in clause (b)' for the full stop at the end' a
colon sihall be substituted and thereafter the following new prc'viso
shall b'? added' namelY:-
"Provided turther that the rate of tax on value of impc'rt of
mobile phone by any person, shall be as set out in the following
Table:
Table
Tax
(ln Rs.l
Fller NonJiler
C & F Value of mobile Phone
(in US Dollao
22
S,NO
I __l
(2) (3)
1 Up to 30 70
2 730
Exceeding '100 and up to 200 930
4 Exceeding 200 and up to 350 970
3,000
6 Exceeding 500 5,200";
(C) in Part lV,-
(a) in Division Vl, the expression '0.3% of the cash amount
withdrawn for filers and" shall be omittedi
(b) in Division VlA, for the expression "0.3% of the transaction
for filers and 0.6%", lhe expression "0.6% of the
transactions" shall be substituted;
(c) in Division Vll, in clause (1), in the Table, against S. No. 1 to
9, for the entries in column (4), the following shall
respectively be substituted, namely,-
"Rs. 15,000
Rs.37,500
Rs.60,000
Rs. 150,000
Rs.225,000
Rs.300,000
Rs.450,000
(1)
Exceeding 30 and up to 100
Exceeding 350 and up to 500
frit
Rs.600,000
Rs. 675 000 ',
(d) in livision Xl, after the Table, the following new provrso s h all
be added, namely:-
"Provided further that the rate for the function of
marriage in a marriage hall, marquee or a community place
wilh the total function area less than 500 square yards or, in
case of a mutti storied premises, with the largest tolal
function area on one floor less than 500 square yards, shall
be 5% of the bill ad valorem or Rs. 5,000 per functicn
whichever is higher";
('12) in the Second Schedule,-
(A) in Part 1,.-
(a) tn clause (66), after sub-clause (lxii), the following subclauses shall be added, namelY:-
"(lxiii) National Disaster Risk lvlanagement Fund'
(lxiv) Deposit Protection Corporation establislLed
under sub-section (1) of section 3 of Deposit
Protection Corporation Act 2016 (Act XXXV|lof
2016) "; and
(b) ir clause (1261), for the full stop at the end a colon shall be
sJbstituted and thereafter the following proviso shall be
added, namelY:-
24
"Provided that this clause shall also apply to such
undertaking set up between the 1"rMarch,2019 and the 3oth
June, 2023 for a period of fiYe years beginning from the date
such industrial undertaking is set up.",
(B) in Part lll, after the omitted clause (16), the following new clause
shall be inserted, namelY:-
"(17) The tax on dividend income derived by a
company, if the recipient of the dividend, for the tax year,
has surrendered loss to or received loss from the company
distributing the dividend under section 59B, shall be reduced
to the extent of percentage of ordinary shareholding the
recipient of dividend has in the company distributing the
dividend.";
(C) in Part IV,-
(a) io clause (11A), after clause (xxx), the following sub-clauses
shall be added, namely:-
"(xxxi) National Disaster Risk Management Fund'
(xxxii)Deposit Protection Corporation established
under sub-section (1) of section 3 of Deposit
Protection corporation Act 2016 (Act XxXVll of
2016)."i
(b) after clause (38C), the following new clause shall be
inserted, namely:-
2_i
'(38D)The provisions of section 151 and 153 shall not
apply to the National Disaster Risk Management Fund.";
(c) after clause (81), the following new clause shall be inserted'
namely:-
"(81A) The provisions of clause (a) of sub-sectiolr (1)
cf section 165 shall not apply to banking companies for
fJrnishing information of taxes collecled and deducted under
srections 231A and 151.";
(d) after clause (95), the following new clause shall be inserled'
|]amely -
"(95A) The provisions of section 2364 shall not apply
in respect of auction of franchise rights to participating teams
n a national or international league organized by any board
lr other organization estabtished by the Governmellt in
Pakistan tor the purposes of controlling' regulatinll or
encouraging major games and sports recognized b) the
Government with effect from the first day of July' 2019'";
(e) after clause (10'1), the following new clause shal be
inserted, namelY:-
"(1OlA) The provision of section 231A shall not epply
to a Pak Rupee account if the deposits in the accourrt are
made solely from foreign remittances credited directl)/ into
such account.',
)6
(f) after clause (110), the following new clause shall be added
namely:-
"(111) The provisions of section 48 shall not apply to so
much of the laxable income of banking company subject to
reduced rate ol tax al21ok under rules 7D, 7E and 7F of the
Seventh Schedule for tax years 2020 to 2023.";
(13) in the Seventh Schedule,-
(A) after rule 7C, the following new rules shall be inserted, namely:-
"7D. Reduced rate of tax for additional advances to
micro, small and medium enterprises.- (1) The amount of
interest income offered for tax arising from additional advances to
micro and small enterprises, for the tax yea$ 2020 to 2023' shall
be taxed at the |ale of 2\yo instead of the rate provided in Division
ll of Part I of the First Schedule:
Provided that such reduced rste of tax 6hall be available
subject to filing of details of such advances along with gross and
net margin earned from such advances'
(2) For the purpose of thls rule, the terms "micro' small
and medium enterprises" shall have the same meaning as provided
in Prudential Regulations issued by State Bank of Pakistan
(3) Additional advances means advances in addition to
average amount of such advances made in such sector by the bank
for tax Year 2019.
21
7l=. Reduced rate of tax for additional advances to low
cost hoJsing finance'- (1) The amount of interest income
offered ior tax arising from additional advances for low cost housing
finance, for the tax years 2O2O to 2023, shall be taxed at the rate of
20% instead of the rate provided in Division ll of Part I of the First
Schedu ei
F'rovided that such reduced rate of tax shall be available
subject to filing of details of such advances along with gross and
net margin earned from such advances'
(2) For the purpose of this rule' the terms "low cost
housinll" shall have the same rneaning as provided in Prudential
Regulalions issued by State Bank of Pakistan'
l3) Additional advances means advances in addition to
averags amount of such advances made in such sector by the llank
for tax year 2019.
7F, Reduced rate of tax for additional advance:s as
Farm (:redit- (1) The amount of interest income offered for tax
arising from additional advances to Farm Credit in Pakistan' fc'r tax
years :lO2O to 2023, shall be taxed at the rate of 20o/o instead of the
rate provided in Division ll of Part I of the First Schedule:
Provided that such reduced rate of tax shall be available sublect to
filing c,f details of such advances along with gross and net nargin
earned from such advances.
2ti
(2) For the purpose of this rule, the terms " Farm Credit"
shall have the same meaning as provided in Prudential Regulations
issued by State Bank of Pakistan for Agriculture Financing
excluding advances made to a company as defined in section 80
(3) Additional advances means advances in addition to
average amount of such advances made in such sector by the bank
for tax Year 2019.".
5. Amendments of the Federal Excise Act, 2005'- ln the Federal Excise Act'
2005, the following further amendments shall be made, namely:-
(1) in section 29, in sub-section (2), in clause (aa), in sub-clause (ii)' for the
expression "section 30", the expression "sub-section ('1) of section 29"
shall be substituted; and
(2) in the First Schedule,-
(a) in TABLE I' in column (1),-
(l) against serial number 55,-
(A) in column (2), after the word "above"' occurring twice'
the expression ", but nol exceeding 3000 cc" shall be
substituted; and
(B) after the word "twenty" in column (4)' the expression
'-five" shall be substituted; and
(iD after serial number 55 and the entries relating thereto in
columns (2), (3) and (4), amended as aforesaid' the
29
Thirty per
ce ad val.
lmported motor cars, SUVS 87.03
and other motor vehicles of
cylinder caPacity of 300occ
or above, Principally
designed for the transport
of persons (other than
those of headings 87.02),
including station wagons
and racing cars of cylinder
capacity of 3000cc or
above
"t,5A
Ten per c,?nt
ad val.".
87.03 l'5 B Locally manufactured or
assembled motol cars'
SUVS and other motor
vehicles of cylinder
capacity of 1800cc or
above, principallY designed
for the transport of Persons
(other than those of
headings 87.02), including
statron wagons and racing
fcllowing new serial numbers and entries relating thereto
shall respectively be inserted, namely:-
l0
cars of cylinder capacity of
1800cc or above
5. Amendments in Finance Act, 2018, - ln the Finance Act, 2018(XXX of 2018), in
section 10, for the "TABLE' , the following shall be substituted namely: -
,.TABLE
S. No Mobile Phones having C&F Value
(US Dollars)
Rate of levy per set in
Pak Rupees
(21
STATEMEN I OF OBJECTSAN D REASONS
The purpose of this bill is to give effect to the fiscal stabilization objective of the
Government and shall come into force on the next day of assent given to this Act by the
president of lstamic Republic of Pakistan except clause 2 (2) (ii) which shall have effect
from 31"r March, 2019 and clauses 4l.1\, 4(2), 4(12XAXb), 4(12)(B), 4(12XC)(d),
4(12XCXf) and 4(13XA) which shall have effect from the first day of July, 2019
(Asad Umar)
lvlinister for Finance Revenue and Economic Affairs
(3) (1)
Ni 1 Up to 30
2 Above 30 and up to Nir '100
3 Above 100 and up to 200 500
4 Above 200 and up to 350
5 Above 350 and up to 500 3500
7000" 6 Above 500
ll
'1500
NOTES ON CLAUSES
FINANCE SUPPLEMENTARY (SECOND AMENDMENT)
MS ACT 1969 IV OF 9
Clause 2(1)
Clause 2(2)(i)(a)
Clause 2(2)(iXb)
Clause 2(2)(ii)
Seeks to amend First Schedule to the Customs Act, '1969 to give
effect to the proposed exemption on import of all items for Ostomy
use;
Seeks to amend Fifth Schedule to the Customs Act, 1969 to give
effect to the proposed exemption of duty on newsprint;
Seeks to amend Fitth Schedule to the Customs Act, '1969 to give
effect to the proposed reduction ln rate of customs duty on Plastic
i/ouldlng Compound;
Seeks to add proposed Part-Vlll of Fiflh Schedule to the Customs
Act, '1969 to give effect to the proposed reduction in rate of
customs duty on certain industrial raw materials/ inputs;
12
BtLL,2019
SALES TAX ACT, 1990
Clause 3(1) Seeks to insert new section 67A after section 67
Clause 3(2)(axi) Seeks to insert the words "for the period ending on 30rh June,
2023" after the word " lslamabad" in Table-1 in the Sixih Schedule
Clause 3(2XaXii) S€eks to substitute serial number 117 and entries relating thereto
in oolumns (1), (2) and (3) in Table-] in the Sixth Schedule
C ause 3(2)(a)(lii)
Clause 3(2)(a)( v) S€,eks to add new serial number 150 and entries relating thereto in
columns (1), (2) and (3) after serial number 149 in Table-1 in the
Si:<th Schedule
S€)eks to substitute the iull stop and phrase ".This exernption in
re ation to renewable energy shall remain in force up to 3oth June,
2C23" for the word "etc" in column (2) against serial number 7 in
cclumn (1) in the Annexure in Table-3 ln the Sixth Schedule
Clause 3(2)(b)(ii) Soeks to substitute the words "as imported on or before 3Oth June,
2(123" for the word and full stop "etc." in co umn (2) agailst serial
nrrmber 144 in column (1) in the Annexure in Table-3 in the Sixth
S(;hedule
Clause 3(3)
C ause 3(4)
tl
SEeks to omit serial number 118 and entries relating thereto ln
columns (1), (2) and (3) in Table-1 in the Sixth Schedule
Clause 3(2Xb)(i)
Soeks to substitute serial number 2 and entries relating thereto in
cc,lumns (1), (2), (3), (4) and (5) in column (1) in the Table in the
Ninth Schedule
Seeks to add Tenth Schedule after Ninth Schedule
AMENDMENT OF INCOME TAX ORDINANCE xLrx oF 2001
Clause 4(1)
Clause 4(2)
Clause 4(3)
Clause 4(4)
Clause 4(5)
Clause 4(6)
Clause 4(7)
Clause 4(8)
Seeks to amend section 5A to abolish tax on undistributed profits
after tax year 2019
Seeks to amend section 37A to allow carry foMard of capital losses
for tax year 2019 and onwards for three years
Seeks to extend exemption on incorne of Federal Government from
sale of spectrum and licenses to renewal of licenses.
Seeks to insert section 998 to empower Federal Government to
prescribe schemes for small traders and shopkeepers
Seeks to amend section 123 to provide for provisional assessment of
off-shore assets
Seeks to amend section 148 to make tax collected on certain
commercial imports as final tax
Seeks to amend section 165 to makc requirement of filing of
withholding statement bi-annual instead of monthly, to make the
relevant related technical changes and to authorize empower
Commissioner to call for withholding statement for
Seeks to amend section 227C to relax restriction for non-filers on
purchase of locally manufactured motor vehicles up to 1300CC and to
relax restriction on purchase of immovable property as well as locally
manufactured vehicles for non-resident Pakistani citizens
Clause 4(9) Seeks to omit section 230E which provided for establishment of
l4
Clause 4(10)
Clause 4(11XA)
Clause 4(11)(B)
Clause 4(1 1)(C)(a)
C ause 4(1 1)(CXb)
Clause4(1IXCXc)
Clause 4(1 1)(c)(d)
clause 4(12)(A)(b)
Clause 4( 12XB)
D rectorate General of Transfer Pricing
Seeks to amend section 2334 to abolish advance incomer tax on
mem lers of stock exchange from 1"1 February 201 9
Seeks to abolish super tax on non-bank ng persons attel tax year
-
2019 and to keep rate of super tax for banking companies at 4%.
Seeks to provide advance income tax rates on import ol mobile
phones.
Seeks to abolish advance income tax on cash withdrawals for filers
Seeks to abolish advance income tax on purchase of banking
instruments against cash for fllers
Seeks to increase rate of advance income tax on purchase
registration or booking of motor vehicles by non-filers.
Seels to reduce the minimum rate of withholding tax in case of small
marr age halls
Seel,s to grant exemption from tax on income to National Disaster
Risk lvlanagement Fund and Deposit Protection Corporation
Seells to enhance and extend exemption from tax on profit & gains to
manrfacturers of plant and machinery and equipment for cedicated
use n renewable generation set up between l"tlVlarch, 2019 and 30rh
Jun€, 2023 for five years
Seeiis to reduce tax liability on inter-corporate dividend in case of"
com )anies availing group relief
Clause 4(12XC)(a) Seel(s to grant exemption to Nationa Disaster Risk Management
Clause 4(12)(A)(a)
Clause 4('12)(C)(b)
Clause 4(12)(C)(c)
Clause a(12)(c)(d)
Clause 4(12)(C)(e)
Clause 4(12)(C)(f)
Clause 4(13)
lai
Fund and Deposit Protection Corporation from minimum tax u/s 113
Seeks to grant exemption to National Disaster Risk i\,4anagement
Fund from tax deductions under section 151 and 153
Seeks to grant exemption to banks from filing withholding statements
in respect of certain sections
Seeks to grant exemption from deduction of tax on auction of
franchise rights to teams padicipating in national or international
sports league
Seeks to grant exemption from withholding tax on cash withdrawal to
accounts solely fed through foreign remittances
Seeks to exempt taxable income of banking company from additional
financing in specific sectors from super tax.
Seeks to amend Seventh Schedule to provide for reduced rate of tax
on income of banks arising from additional flnancing to Micro, Small &
Medium Entcrprises, Low cost Hou6ing, and Farm Credit
FEDERAL EXCISE AC , 2CO5
Clause 5(1)
Clause 5(2XaX )(A)
Clause 5(2)(aXiXB)
Clause 5(2)(aXii)
Seel(s to substitute the phrase "sub-section (1) of section 29" for the
phrase "section 30" in sub-clause (ii), in clause (aa) in sub-section
Seeks to substitute the comma and words ", but not exceeding 3000
cc" rfter the word "above", occurring twice, in column (2) against
serial number 55 in colun'rn (1) in Table I in the First Schedule
See(s to insert the hyphen and word '-five" after word "twenty", in
column (4) against serial number 55 in column (1), n Tabl€t I in the
Firsl Schedule
SeeKs to insert new serial numbers 55A and 55B and entriesi relating
thereto in cotumns (1), (2), (3) and (4) after serial number 55 in Table
I in lhe First Schedule
l1

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