A BILL to give effect to the financial
proposals of the Federal Government for the year
beginning on the first day of July, 2006, and to amend certain laws

WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2006 and to amend laws for the purposes hereafter appearing;

It is hereby enacted as follows:-

1. Short title, extent and commencement.– (1) This Act may be called the Finance Act, 2006.

(2) It extends to the whole of Pakistan.

(3) It shall, unless otherwise provided, come into force on the first day of July, 2006.

2. Amendment of Act VIII of 1923.- In the Workmen’s Compensation Act, 1923
(VIII of 1923), In Schedule IV, for the figure “3000” the figure “6000” shall be substituted.

3. Amendment of Act XXV of 1934.- The following further amendments shall be made in the Factories Act, 1934 (XXV of 1934), namely:-

(1) In section 38, for the words and comma, “ten and a half hours, or where the factory is a seasonal one, eleven and a half”, the word “twelve” shall be substituted; and

(2) in section 45, in sub-section (1), in clause (b), in the first proviso, after the word “Provided” the word “further” shall be inserted and before the proviso, amended aforesaid, the following new proviso shall be inserted, namely :-
“Provided that if the employer arranges for the transport facilities, the women may work up to 10 p.m. in two shifts:”.

4. Amendment of Act XX of 1941.- In the Profession Tax Limitation Act, 1941 (XX of 1941), for section 2 the following shall be substituted and shall be deemed to have been so substituted on the 1st day of July, 1977, namely:-

“2. Limitation of tax on professions, etc.- (1) Notwithstanding the provisions of any law for the time being in force, any taxes payable in respect of any one person by way of tax on professions, trades, callings or employments under an Act of a Provincial Assembly, shall cease to be levied
to the extent to which such taxes exceed one hundred thousand rupees per annum.

(2) Notwithstanding anything contained in any law or in any judgement of any court including a High Court and the Supreme Court, the tax on professions, trades, callings or employments levied and collected under an Act of a Provincial Assembly on or after the 1st day of July, 1977, as is not in excess of the limit fixed in sub-section (1), shall be deemed to have been validly levied and collected and shall not be liable to be refunded and the provisions of this Act shall have, and shall be deemed always to have had, effect accordingly.”.

5. Amendment of Ordinance XLVI of 1960.- In the Public Investments (Financial Safeguards) Ordinance, 1960 (XLVI of 1960), the following further amendments shall be made, namely:-

(1) in section 4,-
(a) for the words, comma and figure “Companies Act, 1913” the words, comma and figure “Companies Ordinance, 1984” shall be substituted; and
(b) in the margin, for the figures and word “VII of 1913” the figures and word “XLVII of 1984” shall be substituted;

(2) after section 9 the following new section shall be inserted, namely:-

“9A. Ordinance not to apply to certain bodies corporate, etc.- (1) Notwithstanding anything in this Ordinance a body corporate, company, institution, undertaking and establishment, specified in the Schedule to this Ordinance, upon privatization pursuant to the Privatization Commission Ordinance, 2000 (LII of 2000) shall not be deemed to be a body corporate, corporation, institution, undertaking or establishment established with the aid of public revenues of the Federation or the Federal Government for the purposes of this Ordinance.
(2) The Federal Government may, by notification in the official Gazette, amend the Schedule so as to add any entry thereto, modify or omit any entry therein.”; and
(3) after section 10 the following Schedule shall be added, namely:-

THE SCHEDULE
[See section 9A]

1. The Pakistan Telecommunication Company Limited.
2. The Pakistan Steel Mills Corporation.”
6. Amendment of Ordinance, 1968 (W.P. Ord. VI of 1968).- In the West Pakistan
Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (W.P. Ord.
VI of 1968), in the schedule, in paragraph 1,-
(a) in clause (a), after sub-clause (5) and entry relating thereto, the following new sub-clause and entry relating thereto shall be added, namely:-
“(6) contract worker”; and
(b) after clause (f), the following new clause shall be, added, namely:-
“(g) A “contract worker” is a workman who works on contract basis

7. Amendment of Act, 1968 (XII of 1968).- In the Companies Profits (Workers Participation) Act, 1968 (XII of 1968), the following further amendments shall be made namely:-
(1) in section 2, for clause (f), the following shall be substituted, namely:
“(f) “Worker” in relation to a company means an employee of the company who falls within the definition of a worker as defined in clause (xxx) of section 2 of the Industrial Relations Ordinance, 2002 (XCI of 2002) and has been in the employment of the company for a period of not less than six months.”;
(2) in section 5, after sub-section (4), the following new sub-section shall be added namely:
“(5) Notwithstanding anything contained in this Act or the scheme, if any defaulting employer strictly complies with the provisions of section 3 and distributes the benefits in accordance with paragraph 4 of the scheme for the period of default on or before the date fixed by the Federal Government, no such penalty shall be imposed and the company shall not be liable to pay interest as provided in paragraph 2 of the scheme.”; and (3) in the Schedule,-

(a) in paragraph 1, in sub-paragraph (iii) for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-

“Provided that for the companies established on or after 1st day of July 2006,-
(a) clause (ii) shall have effect as if for the figure and word
“20 lacs” the figure and word “5 million” were substituted; and
(b) clause (iii) shall have effect as if for the figure and word “40 lacs” the figure and word “20 million” were substituted.”
(b) in paragraph 4,-
(i) in clause (a), under the heading “Categories”, for the existing entries, the following shall be substituted, namely:
“1. Workers drawing average monthly wages not exceeding five thousand rupees.
2. Workers drawing average monthly wages exceeding five thousand rupees but not exceeding seven thousand five hundred rupees.

3. Workers drawing average monthly wages exceeding seven thousand five hundred but not exceeding ten thousand rupees.”; and
(ii) in clause (d), for the words “rupees six thousand”, the words “the amount of three times of the minimum wages for unskilled workers as given in the schedule of Minimum Wages for Unskilled Workers Ordinance, 1969” shall be substituted.
8. Amendments of Act IV of 1969.- In the Customs Act, 1969 (IV of 1969), the following further amendments shall be made, namely:-
(1) in section 2,-
(a) clauses (c), (d), (ib) and (jj) shall be omitted;
(b) after clause (bb) the following new clause shall be inserted, namely:-
“(bba) “audit” means examination of books, records, documents, correspondence, stocks and inventory of goods relating to import, export and other business activities of the persons referred to in section 211, in order to ascertain their liability of duties and taxes and compliance with relevant laws and rules;”;
(c) after clause (kk) the following new clauses shall be inserted, namely:-

“(kka) “documents” means a goods declaration, application for claim of refund, duty drawback or
repayment of duty, import or export general manifest, passenger manifest, bill of lading, airway bill, commercial invoice and packing list or similar other forms or documents used for customs clearance or making a declaration to Customs, whether or not signed or initialed or otherwise authenticated, and also includes,-
(i) any form of writing on material, data or information recorded, transmitted, or stored by means of a tape recorder, computer or any other device, and material subsequently derived from information so recorded, transmitted or stored;
(ii) a label, marking or other form of writing that identifies anything of which it forms part or to which it is attached by any means;
(iii) a book, map, plan, graph, or drawing; and
(iv) a photograph, film, negative, tape, or other device in which one or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced; and
“(kkb) “electronic duty drawback filing and payment system” means Electronic Duty
Drawback Filing and Payment System as specified by the rules.”;
(d) for clause (la) the following shall be substituted, namely:-
“(la)“goods declaration” means a goods declaration filed under sections 79, 104, 131, 139 or 144 and includes a goods declaration electronically filed;”;
(e) in clause (w),-
(i) the word “outstanding” shall be omitted; and
(ii) after the word “penalty”, the words “or any other amount” shall be inserted;
(f) in clause (x) the word “and” shall be omitted; and
(g) in clause (y), for the full stop, at the end, a semi colon and word “;and” shall be substituted and thereafter the following new clause shall be added, namely:-
“(z) “surcharge” means an amount or charge required to be paid under sections 21A, 83, 86, 98 and 202A”;.
(2) in section 4, after the word “Act”, the words “or the rules made thereunder” shall be inserted;

(3) in section 18,after sub-section (4), the following new sub-sections shall be inserted, namely:-
“(5) The Federal Government may, by notification in the official Gazette, levy an additional customs-duty on all or any of the goods imported or exported, as specified in the First Schedule, at a rate not exceeding seventy-five per cent of value of such goods as determined under section 25.
(6) The additional customs-duty levied under sub-section (5) shall be-
(a) in addition to any duty imposed under subsections
(1) and (3) or under any other law for the time being in force; and
(b) leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the official Gazette in which such notification appears is published at any time after that day.”;
(4) section 21A shall be renumbered as sub-section (1) of that section and thereafter the following new sub-section shall be added, namely:-

“(2) Where deferment of customs-duties is allowed by the Board under sub-section (1), a surcharge not exceeding fifteen per cent per annum shall also be payable on the deferred amount from such date and in the manner as the Board may by rules prescribe.”;
(5) in section 25, after sub-section (15), in Explanation II, the words “bill of export or”, occurring thrice, and the figure, letter and word “131A or” shall be omitted;
(6) section 25A shall be renumbered as section 25C and before section 25C, renumbered as aforesaid, the following shall be inserted, namely:-

“25A. Powers to determine the customs value.- (1) Notwithstanding the provisions contained in section 25, the Collector of Customs on his own motion, or the Director of Customs Valuation on a reference made to him by any person, may determine the customs value of any goods or category of goods imported into or exported out of Pakistan after following the scheme and sequential order as laid down under section 25.
(2) The customs value determined under sub-section (1) shall be the applicable customs value for assessment of the relevant imported or exported goods.

(3) In case of any conflict in the customs value determined under sub-section (1), the Director-General of Customs Valuation shall determine the applicable customs value.”;
(7) in section 25C, renumbered as aforesaid,-
(a) the words “bill of entry or”, wherever occurring, shall be omitted;
(b) in sub-section (1),-
(i) for the words “the Assistant Collector or any other higher officer of customs may” the words and commas “and the Collector of Customs is satisfied that the declared value is not the actual transactional value, he may after approval of the Board” shall be substituted; and
(ii) in clause (i), for the words “value and duties and other taxes leviable on imported goods” the words “such offer and duties and other taxes calculated in accordance with the offer” shall be substituted; and
(c) in sub-section (3), for the word and figure “section 25” the words, figures and comma “sections 25 or 25A, as the case may be” shall be substituted;
(8) for section 26 the following shall be substituted, namely:-

“ 26. Obligation to produce documents and provide information.- (1) Any person on demand by the appropriate officer of customs, by notice in writing, as specified in the notice, shall,- (a) furnish information relating to importation, exportation, purchase, sales, transportation, storage or handling of any goods imported or exported;
(b) produce for examination, documents or records that the appropriate officer considers necessary or relevant to the audit, inquiry or investigation under the Act; (c) allow the appropriate officer of Customs to take extracts from or make copies of documents or records; and
(d) appear before an officer of Customs and answer any question put to him concerning goods, documents, records and transactions relating to the audit or inquiry or investigation.
(2) The appropriate officer of Customs conducting an audit, inquiry or investigation as the case may be, under this Act, may require in writing any person, department, company or organization to furnish such information as is held by that person, department, company or organization which in the opinion of the appropriate officer is required for the completion of such audit, inquiry or investigation.
(3) The Board may require in writing any person, department, company or organization, as the case may be, to provide information held by that person, department, company or organization, which in the opinion of the Board is required for purposes of formulation of policy or administering the laws of Customs, Sales Tax, Federal Excise or Income Tax.
(4) Every person, department, company or organization shall furnish the information requisitioned by the Board or the appropriate officer under sub-sections (2) or (3) shall furnish the information so requisitioned within the time specified in the notice issued by the Board or the appropriate officer.”;
(9) after section 26, substituted as aforesaid, the following new sections shall be inserted, namely:-

“26A. Conducting the audit.- (1) The appropriate officer of customs conducting any audit under this Act shall proceed in the manner as the Board may by rules prescribe.
(2) Where any audit or inquiry or investigation is to be conducted for the purpose of ascertaining the correctness of any declaration or document or statement, for determining the liability of any person for duty, taxes, fees, surcharge, fines and penalties, or for ensuring compliance with all other laws administered by the customs, an appropriate officer of Customs may,-
(a) examine, or cause to be examined, upon reasonable notice, any record, or any statement or declaration or document described in the notice with reasonable specificity, which may be relevant to such audit, inquiry or investigation ;
(b) summon , by giving a notice and reasonable time,-
(i) the person who imported, or exported or transported or stored or held under customs bond, or filed a goods declaration, drawback or refund claim;
(ii) any officer, employee or agent of any person described in clause (a); and
(iii) any person having possession, custody or care of records and documents required to be kept under the Act, and any other person, as deemed proper, to appear before him at a reasonable time and to produce such records and documents as specified in the notice and to give such testimony under oath as may be relevant.

26B. Access for the purposes of audit.- (1) The appropriate officer of Customs, after giving a notice in writing specifying the date of visit, shall have access to business or manufacturing premises, registered office or any other place where any goods, stocks, documents or records relating to the ongoing audit are kept or maintained. Such officer may inspect the goods, stocks, documents, records, data, correspondence, accounts, statements, utility bills, bank statements, information regarding nature and sources of funds or assets with which his business is financed, and any other records or documents required under any Federal or Provincial laws, maintained in any form or mode. Such an officer may take into his custody such documents, records or any part thereof, in such form as he may deem fit, against a signed receipt.
(2) In all cases, except where it would defeat the purpose of the audit, a reasonable advance notice regarding a visit shall be given to the person concerned.
(3) Whosoever causes any obstruction or fails to provide any documents, record, statement etc, as required under subsection
(1),with an intention to defeat the purpose of the Act by way of destroying, altering or concealing any books, documents or records required to be maintained under this Act, shall be guilty of an offence under this section.”; (10) in section 27,-
(a) the words “or Deputy Collector”, wherever occurring, shall be omitted; and
(b) in sub-section (1),
(i) after the word “informs” the words “an officer of Customs not below the rank of” shall be inserted; and
(ii) for the words “bill of entry” the words “goods declaration” shall be substituted;
(11) in section 27A, after the word and comma “owner,” the words and comma “to be made before the filing of goods declaration,” shall be inserted;
(12) in section 29,-
(a) the words “bill of entry or bill of export or” shall be omitted; and
(b) after the words “customs-area”, the words and comma “or assigned a Customs Reference Number electronically, as the case may be” shall be inserted;
(13) in section 30, the words “bill of entry or”, wherever occurring, shall be omitted;
(14) in section 31,-
(a) in the marginal note, for the words “export duty”, the words “duty on goods exported” shall be substituted;
(b) the words “bill of export or”, occurring twice, shall be omitted; and
(c) in the first proviso, the words “bill or” shall be omitted;
(15) in section 32, in sub-section (4), for the words “the amount of duty payable by him” the word and comma “any amount payable by him under this Act,” shall be substituted;
(16) in section 32A, in sub-section (1), in clauses (b) and (c), for the words “bill of entry or bill of export or” the words “goods declaration” shall be substituted;
(17) in section 35,-
(a) the words “or Deputy Collector” shall be omitted; and
(b) in the Explanation, for the words “bill of export” the words “goods declaration” shall be substituted;
(18) in section 65, in clause (b), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that where the Customs Computerized System is in operation, all loading and discharge may be allowed by the Collector of Customs round the clock and on all days.”;
(19) in section 79, for sub-section (1), the following shall be substituted, namely:-
“(1) The owner of any imported goods shall make entry of such goods for home consumption or warehousing or for any other approved purposes, within ten days of the arrival of the goods, by,-
(a) filing a true declaration of goods, giving therein complete and correct particulars of such goods, duly supported by commercial invoice, bill of lading or airway bill, packing list or any other document required for clearance of such goods in such form and manner as the Board may prescribe ; and
(b) assessing and paying his liability of duty, taxes and other charges thereon, in case of a registered user of the Customs Computerized System:
Provided that if, before filing a goods declaration, the owner makes a request to an officer of customs not below the rank of an Assistant Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer, subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:
Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.”;
(20) in section 80, after sub-section (5), the following sub-section shall be inserted, namely:-
“(6) Where a request for clearance by importer is not allowed by an officer of customs not below the rank of an Assistant Collector, an assessment or decision made under this section, shall, for purposes of section 193, be deemed to be an order issued under section 179.”;
(21) after section 81, the following new section shall be inserted, namely:-

“ 81A. Power to allow import or export on execution of bonds in certain cases.– (1) Where the provisions of this Act or any other law requires certain conditions to be met before a person can import or export any goods or clear any goods from the customs control and if an officer of customs not below the rank of an Assistant Collector is satisfied, having regard to the circumstances of the case that such condition cannot be met before such import, export or clearance without detriment to that person, he may, notwithstanding anything contained in this Act or such other law, grant leave for such import, export or clearance on executing such bond or surety or security and subject to such conditions, as he deems appropriate, for meeting the requirement of that law within such time after the import, export or clearance, as may be specified in the bond.
(2) An officer of Customs not below the rank of an Assistant Collector shall cancel the bond as discharged in full, and shall on demand, deliver it, so cancelled, to the person who has executed or who is entitled to receive it, in case the conditions are fulfilled within the time specified in the bond and in such a case that person shall not be liable to any penalty under this Act or, as the case may be, in such other law for the contravention of the provisions thereof.
(3) In case the conditions are not fulfilled within the time specified in the bond, the officer not below the rank of an Assistant Collector of Customs shall, without prejudice to any other action that may be taken under this Act or any other law for the time being in force, be entitled to enforce the bond.”;
(22) in section 82,-
(a) for the words “one month” the words “twenty days” shall be substituted; and
(b) for the word “fifteen” the word “ten” shall be substituted;
(23) in section 83, in sub-section (2), for the word “thirty” the word “seven” shall be substituted;
(24) section 83A shall be omitted;
(25) in section 88, in sub-section (5), for the words “bill of entry” the words “goods declaration” shall be substituted;
(26) in section 91, the word “private”, wherever occurring, shall be omitted;
(27) in section 113, in sub-section (2), the words “bill of export or” and words and comma “of the bill of entry or goods declaration, if removed” shall be omitted;
(28) in section 115, in the proviso, the words “after the discovery” shall be omitted;
(29) in section133, for the words “ bill of export” the words “goods declaration” shall be substituted;
(30) in section 134, the words “bill of export or” shall be omitted;
(31) in section 155C, in sub-section (1), the words “in writing”, shall be omitted;
(32) in section 155H, in clause (b), after the word “evidence” the words “by the department” shall be inserted;
(33) after section 155P, the following new sections shall be inserted, namely:-

“155Q. Electronic exchange of information and authentication through the Customs Computerized System.- Any declaration, documents or record, accounts, notice, order, payment, authentication, authorization or information required, delivered or provided by the Customs or any registered user shall be deemed to have been required, delivered, provided or done under this Act when communicated electronically through the Customs Computerized System.

155R. Correction of clerical errors.- Where the Customs Computerized System is in operation and the Collector of Customs is satisfied that incorrect data has been electronically communicated to Customs due to any clerical error, he may, for reasons to be recorded in writing, direct the correction of the said error. Except as provided herein, no person shall alter any data in the Customs Computerized System.”;
(34) in section 156, in sub-section (1), in the Table ,-
(a) for serial number 12 and entries relating thereto in columns (1),
(2) and (3), the following shall be substituted, namely:- “12 If a person contravenes any provisions of
such person shall be liable to a 26(1) and section 26, penalty not exceeding one million rupees and upon conviction before a special judge, to imprisonment for a term not exceeding one year or both.
26(4)
(b) after serial number 12, and entries relating thereto in columns
(1), (2) and (3), the following new serial numbers and entries relating thereto shall be inserted, namely:- “12A If any person contravenes the provisions of section 26A, such person shall be liable to a penalty not exceeding one million rupees and upon conviction before a Special Judge, he shall further be liable to imprisonment for a term not exceeding one year or both.
26A 12B If any person contravenes the provisions of section
26B, such person shall be liable to a penalty not exceeding one million rupees and upon conviction before a Special Judge, he shall further be liable to imprisonment for a term not exceeding one year or both. 26B”;
(c) against serial number 44 and 45, in column (2) the words “a bill of entry or bill of export or” shall be omitted;
(d) after serial number 47, and entries relating thereto in columns (1), (2) and (3), the following new serial number and entries relating thereto shall be inserted, namely:- “47A If the goods declaration is not filed within the prescribed period of ten days, the owner of such goods shall be liable to a penalty
not exceeding one hundred thousand rupees. 79”;
(e) against serial number 66 and 67, in column (2) the words “bill of export or” shall be omitted;
(f) for serial number 96 and entries relating thereto in columns (1),
(2) and (3), the following shall be substituted, namely:- “96. If any person commits an offence under section 211, such person shall be liable to a penalty not exceeding one million rupees
(35) in section 174, the words “bill of export or” shall be omitted;
(36) in section 179,-
(a) for sub-sections (1) and (2), the following shall be substituted, namely:-
“(1) Subject to sub-section (2), in cases involving confiscation of goods or imposition of penalty under this Act or the rules made thereunder, the jurisdiction and powers of the Officers of Customs in terms of amount of duties and other taxes involved, excluding the conveyance, shall be as follows:-
(i) Additional Collector without limit
(ii) Deputy Collector not exceeding five hundred thousand rupees.
(iii) Assistant Collector not exceeding two hundred and fifty thousand rupees.
(2) Notwithstanding the provisions of sub-section (1), the Board may, by notification in the official Gazette, fix or vary the jurisdiction and powers of any Officer of Customs or a class of officers, and may also assign any case to any Collector of Customs, irrespective of the territorial jurisdiction.”;
(b) after sub-section (4), the following new sub-section shall be inserted, namely:-
“(5) Notwithstanding anything contained in this Act, or any other law for the time being in force and notwithstanding any decision or judgement of any forum, authority or court whether passed on or before the commencement of the Finance Act, 2006, the time for adjudication in all the cases pending as on first day of July, 2006, for whatsoever reasons, shall be deemed always to have been extended upto 31st day of December, 2006.”;

(37) in section 195, in sub-section (1), the words and bracket “or the Collector of Customs (Adjudication)” shall be omitted;
(38) in section 195C,-
(a) in the marginal note, for the word “Alternate” the word “Alternative” shall be substituted;
(b) in sub-section (1), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely :-
“Provided that only those disputes which are under litigation, in any court of law or an adjudicating authority, shall be entertained for dispute resolution under the provisions of this section”;
(c) in sub-section (2), after the word “of”, occurring for the sixth time, the words “retired District and Sessions Judge and retired Judges of High Court or” shall be inserted;
(d) in sub-section (3),-
(i) after the word “recommendations” the commas and words “, within forty-five days of its constitution,” shall be inserted; and
(ii) for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that the period of forty-five days stipulated for making the recommendations may be
extended by the Board for another forty-five days on specific request of the committee.”;
(39) in section 196,-
(a) for sub-section (1), the following shall be substituted, namely:-
“(1) Within ninety days of the date on which the aggrieved person or Collector, as the case may be, was served with order of the Appellate Tribunal under sub-section (3) of section 194B,
the aggrieved person or any officer of Customs not below the rank of an Additional Collector, authorized by the Collector, may prefer an application, in the prescribed form along with a statement of the case, to the High Court, stating any question of law arising out of such order.”;
(b) in sub-section (6), in the proviso, after the word “by”, occurring for the first time, the words “such officer as authorized by the Collector or” shall be inserted;
(c) in sub-section (9), after the words “other than”, the words “such officer as authorized by the Collector” shall be inserted; and
(d) after sub-section (9), the following new sub-section shall be inserted, namely :-
“(10) Notwithstanding anything in this Act where any reference or appeal was preferred with the approval of Collector by the officer below the rank of Collector, and the reference or appeal is pending before appellate forum or the Court, such reference or appeal shall be deemed to have been preferred and shall be deemed always to have been so preferred by the Collector.”;
(40) in section 201, in sub-section (1), after the word “owner”, occurring twice, the words “or his agent or custodian of the goods” shall be inserted;
(41) after section 202, the following new section shall be inserted, namely:-

“202A. Levy of surcharge.- Notwithstanding anything contained in this Act and without prejudice to any other action that may be taken thereunder, if any person fails to pay the arrears within the prescribed time, he shall, in addition to the arrears, be liable to pay surcharge at the rate of one and a half per cent per month, of the total amount of arrears.

Explanation.- For the purpose of calculating surcharge, the period of default shall be reckoned from the day following the due date on which the arrears were required to be paid to the day preceding the date on which the same are actually paid.”;
(42) for section 211, the following shall be substituted, namely:-

“211. Maintenance of record. (1) All importers, exporters and claimants of duty drawback, refunds or any notified concessions, terminal operators, owners of the warehouses, customs agents and the licensed customs bonded carriers, carrying out business under this Act or any other law, directly or indirectly, relating to international trade, shall be required to maintain and keep records and correspondence concerning import and export transactions.
(2) The records required under sub-section (1) shall be kept for a period not less than three years in such form as the Board may by notification in the official gazette, specify.
(3) The provision of sub-section (1) shall not be applicable to the baggage of the passengers and crew of the conveyance and to the recipients of gifts. ”;
(43) after section 211, the following new section shall be inserted, namely:-

“211A. Access to the premises and records by the officers of Customs.- The appropriate officer may, at any time after giving a notice in writing, visit any business or manufacturing premises where
any raw materials, components, assemblies or sub-assemblies etc., imported at a notified reduced rate of the duties and taxes are manufactured, processed or stored, and inspect the goods, stocks, documents or records, data etc., and also take stock of the goods imported, manufactured, processed or stored, and the quantity thereof.”;
(44) in sections 160, 163, 176 and 205, the words “or Deputy Collector” shall be omitted;
(45) in the Third Schedule, in serial number 16, for the words “Bill of export” the words “Goods declaration” shall be substituted; and
(46) the amendments set out in the First Schedule shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969).

9. Amendments of Ordinance, 1969 (W.P. Ord. VIII of 1969).- In the West Pakistan Shops and Establishments Ordinance, 1969 (W.P. Ord. VIII of 1969), the following further amendments shall be made, namely:-
(1) in section 6,-
(a) for sub-section (1), the following shall be substituted, namely:-
“(1) Except as otherwise provided in this Ordinance every person employed in any establishment shall, in addition to the leave and holidays as may be admissible to him under sections 14, 15 and 16 be allowed as holiday, one day in each week.”; and
(b) sub-section (4) shall be omitted.
(2) in section 8, in the proviso, for the words “one hundred and fifty” the words “six hundred and twenty-four” and for the words “one hundred” the words “four hundred and sixty-eight” shall be substituted.
(3) in section 9, for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that no such overtime shall be payable to contract workers in receipt of wages being calculated on piece rate basis”.; and
(4) for section 10, the following shall be substituted, namely:- “10. Spread-over.- The period of work of an adult and young person shall be so arranged that inclusive of the interval for rest or meals
under section 7, it shall not spread-over more than twelve hours in the case of adult and nine hours in the case of young person:
Provided that the total period of work so worked out, in case of an adult worker, shall not exceed sixty hour and by a young person fifty-four hours in a week.”.

10. Amendment of Ordinance XVII of 1969.-In the Securities and Exchange Ordinance, 1969 (XVII of 1969), the following further amendments shall be made, namely:-
(1) In section 2, in sub-section (1) ,-
(a) in clause (a), for the words “a stock” the word “an” shall be substituted; and
(b) in clause (ca), for the words “a stock” the word “an” shall be substituted;
(c) after clause (cc), the following new clauses shall be inserted; namely:-
“(cd) “Commodity Futures Contracts” means an agreement to purchase or sell a particular commodity for delivery in the future at a price that is determined at the initiation of the contract that obligates each party to the contract to fulfill the contract at the specified price and that may be settled by delivery, cash or offset at an organized Exchange duly registered with the Commission and in relation to Commodity Futures the expression “commodity” includes,-
(i) agricultural, livestock, fishery, forestry, mining or energy goods, and any product that is manufactured or processed from any such goods; and
(ii) any other matter as may be notified by the Commission in the Official Gazette;
(ce) “corporatisation” means the conversion of a Stock Exchange from a company limited by guarantee to a company limited by shares;
(cf) “demutualization” means the segregation of the ownership of a Stock Exchange from
the right to trade on such Stock Exchange;”;
(d) after clause (d), the following new clause shall be inserted, namely:-
“(da) “Exchange” means a Stock Exchange or a Commodity Exchange;”;
(e) after clause (dd), the following new clause shall be inserted; namely:-
“(de) “integration” means the merger of two or
more Stock Exchanges in accordance with a scheme approved by the Commission;”;
(f) in clause (i) for the words “a Stock” the word “ an” shall be substituted;
(g) in clause (l),-
(i) in sub clause (ii), the word “and” shall be omitted;
(ii) in sub-clause (iii), after the semicolon, at the end, the word “and” shall be added; and
(iii) after sub-clause (iii) amended as aforesaid, the following new sub-clause shall be added, namely:-
“(iv) Commodity Futures Contract;” ;
(2) in sections 2, 3, 4, 5, 6, 7, 21, 23, 31, 33 and 34, for the words “a Stock” the word “an” shall be substituted;
(3) in section 8 in sub-section (1), for the words “unless he is a member thereof” the words “otherwise than as may be prescribed” shall be substituted;
(4) in section 22, in sub-section (1), in clause (c), after the word “Ordinance” the words “or any rules or regulations made thereunder” shall be inserted;
(5) after section 32 D, the following new section shall be inserted, namely:-

“32E. Corporatisation, demutualization and integration of the stock exchanges.- (1) Notwithstanding anything in any other law for the time being in force, the stock exchanges shall stand corporatised and demutualised from 31st December, 2006 or from such later date as may be specified by the Commission, in such manner and in accordance with such conditions as may be prescribed.
(2) From the date of effect of corporatisation and demutualization as aforesaid, no stock exchange shall undertake any activity unless it is corporatised and demutualised. (3) Any two or more stock exchanges may, upon filing a scheme of integration to the Commission for its approval, in such manner and in accordance with such conditions as may be prescribed, be merged so as to transfer to and vest in the successor stock exchange, all the assets, undertaking, liabilities, rights and obligations of any stock exchange which, upon such merger, is proposed to cease to exist.
(4) Without prejudice to the provisions of sections 7 and 22, the Commission may, by notice in writing, for the purpose of effecting the corporatisation and demutualization of the stock exchanges, issue such directions to the stock exchanges, including in respect of their memorandum and articles of association, their management and the transfer of their shares or business, as the Commission may deem expedient.
(5) Where a stock exchange fails to comply with any directions issued by the Commission under sub-section (4), such stock exchange shall be liable to be fined by the Commission by an amount not exceeding one hundred thousand rupees.”;
(6) in section 33, in sub-section (2), in clause (a), for the word, figure and letter “and 32 C” the comma, figures, and word “,32 C and 32 E” shall be substituted.

11. Amendment of Ordinance, 1969 (XX of 1969).-In the Minimum Wages for Unskilled Workers Ordinance, 1969 (XX of 1969), in the Schedule, in column (2), for the figure “3000”, occurring thrice, the figure “4000” shall be substituted.

12. Amendment of Ordinance, 1971 (XXXVI of 1971).- In the Workers’ Welfare Fund Ordinance, 1971 (XXXVI of 1971), the following further amendments shall be made, namely,-
(1) for the words “Income-Tax Officer”, wherever occurring the words, “Taxation Officer” shall be substituted;
(2) in section 2,-
(a) in clause (b),-
(i) for the figure, “1969”, the figure “2002” shall be substituted; and
(ii) in the margin, for figures and words “XXIII of 1969” the figures and words “XCI of 2002” shall be
substituted; (b) clause (e) shall be omitted;
(c) in clause (f), for sub-clause (iii), the following shall be substituted, namely.-
“(iii) any concern running a public transport service”; (d) in clause (ff),
(i) for the figures “1979”, the figures “2001” shall be substituted; and
(ii) in the margin, for the figures and word “XXXI of 1979”, the figures and words “XLIX of 2001” shall be substituted;
(e) after clause (h) a new clause shall be inserted namely:–
“(ha) “Taxation Officer” means a person appointed to be a Taxation Officer under the Ordinance and includes a Commissioner as defined in clause (13)A of section 2 of the Ordinance;
(f) for clause (i) the following shall be substituted, namely.- “total Income” means:
(i) where Return of Income is required to be filed under this Ordinance, the profit (before taxation or provision for taxation) as per accounts or the declared income as per the return of income, whichever is higher; and (ii) where return of Income is not required to be filed, the profit (before taxation or provision for taxation) as per accounts or four per cent of the receipt as per the statement filed under section 115 of the Ordinance, whichever is higher.”;
(g) in clause (j),
(i) for the figures “1969”, the figures “2002)” shall be substituted; and
(ii) in the margin, for the figures and word “XXIII of 1969”, the figures and words “XCI of 2002” shall be substituted;
(3) in section 4,
(a) in sub-section (1), for the word “one” the word “five” shall be substituted, and the words, “or would have been so assessable but for the exemption made by section 48 thereof”, shall be omitted; and
(b) for sub-section (3) following shall be substituted namely:
“(3) The industrial establishment shall on or before the date prescribed for filing of returns of income or a statement under the relevant provision of the Ordinance, pay the amount due from it under sub-section (1) and furnish the proof of payment to the Taxation Officer or the Commissioner as the case may be”;
(c) in sub-section (8) for the words, “equal to eighty per cent per annum of the amount due from it from the date on which it was originally payable to the date on which it is paid”, the words “as per provisions of the Ordinance, relating to the mode and time of recovery of the income tax.” shall be substituted;
(d) after sub-section (9) a new sub-section shall be inserted namely:-
“(10) Industrial establishment may file an appeal against any order passed by Taxation Officer or the
Commissioner as the case may be under this Ordinance before the Commissioner (Appeal) appointed under the Ordinance”;
(4) in section 6, for clause (e), following shall be substituted, namely.-
“(e) investment in government, government guarantees, nongovernment securities and Real Estate”;
(5) in section 10,
(a) for clause (c), following shall be substituted, namely.-
“(c) investment in government, government guarantees, non-government securities and real
estate;”; and (b) after clause (c), a new clause shall be added, namely.-
“(ca) to dispose of the moveable and immoveable property of Workers Welfare Fund and Workers Welfare Boards;”;
(6) in the said Ordinance, after section 15 the following new section shall be added, namely,-

“16. Exemption from taxes.- Notwithstanding anything contained in any other law, the Federal Government may, by order in writing, exempt the Institution from any tax, duty, or rate leviable by the Federal Government or by a local authority under the control of the Federal Government.”.

13. Amendments of Act XIV of 1976,- In the Employees’ Old-age Benefits Act, 1976 (XIV of 1976), the following further amendments shall be made, namely:- (1) in section 1, in sub-section (4), in clause (i),
(a) the word “or” at the end shall be omitted and the semicolon, shall be substituted by colon and thereafter the following proviso shall be added, namely
“Provided that for the industry or establishment set up on or after first day of July, 2006 the number of persons shall be enhanced from “ten” to “twenty”;
(b) in clause (ia) for the word “ten” the word “twenty” shall be substituted; – .
(2) in the Schedule, in paragraph (2), in proviso, for the words “one thousand” the words “one thousand and three hundred’ and for the word and figure “January, 2005” the word and figure “July, 2006” shall be substituted.
14. Amendment of Act XXIX of 1977.- In the Price Control and Prevention of Profiteering and Hoarding Act, 1977 (XXIX of 1977), for section 11, the following shall be substituted, namely:-

“11. Power to try offences summarily.- (1) Offences punishable under this Act shall be tried by a Magistrate appointed under section 14A of the Code of Criminal Procedure, 1898, in a summary manner as provided in sections 262 to 265 of the said Code:
Provided that sub-section (2) of section 262 shall not apply. (2) If a Magistrate has reason to believe that any offence punishable under this Act has been committed by any person, he may enter the place or premises where the offence has been committed and try the offence on the spot.”.

15. Amendment of Act, (V of 1989).- The following further amendments shall be made in Finance Act, 1989 (V of 1989), namely,- In section 7,
(1) in sub-section (1),-
(a) before the word “surrender”, the words and comma “power of attorney,” shall be inserted; and
(b) the words and comma “or purchase of air ticket,” shall be omitted.
(c) in the Explanation to sub-section (i), after paragraph (d), the following new paragraph shall be added, namely:-
“(e) “urban area” means area falling within the limits of the Islamabad Capital Territory, cantonment board or municipal body and includes areas defined as such in the Urban Immovable Property Tax Act, 1958 (WP Act V of 1958). ”;
(2) in sub-section (2),-
(a) after paragraph (C), the following new paragraph shall be inserted, namely:-
“(CA)
(a) Immovable property (other than commercial) situated in urban area, measuring at least one kanal or 500 square yards which ever is less.
(i) Where the value of immovable property is recorded. 2% of the recorded value
(ii) Where the value of immovable property is not recorded. Rs.50 per square yard of the land area”;
(b) Commercial immovable property of any size.
(i) Where the value of immovable property is recorded. 2% of the recorded value
(ii) Where the value of immovable property is not recorded. Rs.50 per square yard of the land
area”; (3) paragraph (D) shall be omitted; and
(4) in paragraph (E), for the figure “0.01”, the figure “0.02” shall be substituted.

16. Amendment in Sales Tax Act, 1990.– The following further amendments shall be made in the Sales Tax Act, 1990, namely:-
In the aforesaid Act,– (1) in section 2, –
(i) after clause (5), the following new clauses shall be inserted, namely:-
“(5A) “common taxpayer identification number” means the registration number or any other number allocated to a registered person;”;
“(5AA)“computerized system” means any comprehensive information technology system to be used by the Board or any other office as may be notified by the Board, for carrying out the purposes of this Act;”;
(ii) after clause (9), the following new clause shall be added, namely:-
“(9A) “e-intermediary” means a person appointed as eintermediary under section 52A for filing of electronic returns and such other documents as may be prescribed by the Board from time to time, on behalf of a person registered under section 14;”;
(iii) in clause (14), for sub-clause (d), the following shall be substituted, namely:-
“(d) chargeable as duties of excise under section 3 of the Federal Excise Act, 2005, on such excisable goods as are mentioned in the Second Schedule thereto or such excisable services as the Federal Government may from time to time notify under section 7 thereof and on which such duties are charged, levied and paid as if it were a tax payable under section 3 of this Act;”;
(iv) after clause (29), the following new clause shall be inserted, namely:-
“(29A) “sales tax account” means an account representing the double entry recording of sales tax transactions in the books of account;”;
(v) in clause (33), the brackets and words “(excluding financial or operating lease)” shall be omitted;
(vi) in clause (46), in sub-clause (g), for the first and second provisos, the following shall be substituted, namely:–
“Provided that, where the Board deems it necessary it may, by notification in the official Gazette, fix the value of any imported goods or taxable supplies or class of supplies and for that purpose fix different values for different classes or description of same type of imported goods or supplies:
Provided further that where the value at which import or supply is made is higher than the value fixed by the Board, the value of goods shall, unless otherwise directed by the Board, be the value at which the import or supply is made;”; and (vii) in clause (47), for the words, figures and brackets “whose income is not liable to tax under the Income Tax Ordinance, 2001 (XLIX of 2001) but has deducted income tax at source under section 153 of the said Ordinance” the words, figures and brackets “who deducts income tax at source under the Income Tax Ordinance, 2001 (XLIX of 2001)” shall be substituted;
(2) in section 8, in sub-section (1), after clause (c) the following new clause shall be inserted, namely:-
“(ca) the goods in respect of which sales tax has not been deposited in the Government treasury by the respective supplier;”;
(3) after section 8, amended as aforesaid, the following new section shall be inserted, namely:-

“8A. Joint and several liability of registered persons in supply chain where tax unpaid.– Where a registered person receiving a taxable supply from another registered person is in the knowledge or
has reasonable grounds to suspect that some or all of the tax payable in respect of that supply or any previous or subsequent supply of the goods supplied would go unpaid, such person as well as the person making the taxable supply shall be jointly and severally liable for payment of such unpaid amount of tax.”; (4) in section 10, in sub-section (2), the words “in connection with a zerorated supply” shall be omitted; (5) for section 11A, the following shall be substituted, namely:-

“11A. Short paid amounts recoverable without notice.– Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his
return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder:
Provided that no penalty under section 33 of this Act shall be imposed unless a show cause notice is given to such person.”;
(6) in section 13, sub-section (4) shall be omitted;
(7) in section 22, in sub-section (1), after clause (d) the following new clause shall be inserted, namely:-
“(da) double entry sales tax accounts;”;
(8) in section 26,–
(a) in the marginal note, the word “Monthly” shall be omitted;
(b) in sub-section (1),–
(i) after the word “bank”, the words “or any other office” shall be inserted; 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 the Board may, by notification in the official Gazette, require any person or class of
persons to submit return on quarterly basis:
Provided further that the Board may, by notification in the official Gazette, require any person or class of persons to submit such return as may be prescribed annually in addition to the monthly return or quarterly return:
Provided also that the return filed electronically on the web or any magnetic media or any other computer readable media as may be specified by the Board shall also be deemed to be a return for the purpose of subsection (1) and the Board may, by notification in the official Gazette, make rules for determining eligibility of the data of such returns and e-intermediaries who will digitize the data of such returns and transmit the same electronically under their digital signatures.”; and
(c) for sub-section (3), the following shall be substituted, namely:- “(3) A registered person may, subject to approval of the Collector of Sales Tax having jurisdiction, file a revised return within ninety days of the filing of return under sub-section (1) or, as the case may be, sub-section (2), to correct any omission or wrong declaration made therein.”;
(9) in section 32A, in sub-section (1), for the full stop, at the end, a colon shall be substituted and thereafter the following new proviso shall be inserted, namely:-
“Provided that the Board may, by notification in the official Gazette, appoint a firm of Chartered Accountants as defined under Chartered Accountants Ordinance, 1961 (X of 1961), to conduct audit
of refund claims.”;
(10) in section 33, in the Table, in column (1), after serial number 19 and the entries relating thereto in columns (2) and (3), the following new serial numbers and the entries relating thereto, shall be added,
namely:-
“20. Any person who fails to submit summary of sale and purchase invoices required under a notification issued under this Act. Such person shall pay a penalty of twenty-five thousand rupees.
26(5)
21. Where any person repeats an offence for which a penalty is provided under this Act.
Such person shall pay twice the amount of penalty provided under the Act for the said offence.
General
22. Any person who,- Such person 50A.”;
(a) knowingly and without lawful authority gains access to or attempts to gain access to the computerized system; or
(b) unauthorizedly uses or discloses or publishes or otherwise disseminates information obtained from the computerized system; or
(c) falsifies any record or information stored in the computerized system; or
(d) knowingly or dishonestly damages or impairs the computerized system; or
(e) knowingly or dishonestly damages or impairs any duplicate tape or disc or other medium on which any information obtained from shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable,
upon conviction by the Special Judge, to imprisonment for a term which may extend to one year, or with fine which may extend to an amount equal to the loss of tax involved, or with the computerized system is kept or stored; or
(f) unauthorizedly uses unique user identifier of any other registered user to authenticate a transmission of information to the computerized system; or
(g) fails to comply with or contravenes any of the conditions prescribed for security of unique user
identifier. both.
(11) after section 38A, the following new section shall be added, namely:-

“38B. Obligation to produce documents and provide information.—(1) Notwithstanding anything contained in this Act or any other law for the time being in force, any person required to maintain the record under the Act, on demand by an officer, not below the rank of a Deputy Collector of Sales Tax, by notice in writing, as and when specified in the notice, shall-
(a) produce for examination, such documents or records which the officer of Sales Tax considers necessary or relevant to the audit, inquiry or investigation under the Act;
(b) allow the officer of Sales Tax to take extracts from or make copies of such documents or records; and (c) appear before the officer of Sales Tax and answer any question put to him concerning the documents and records relating to the audit or inquiry or investigation referred to in clause (a) above.
(2) An officer of Sales Tax conducting an audit, inquiry or, as the case may be, an investigation under the Act, may require in writing any person, department, company or organization to furnish such
information as is held by that person, department, company or organization, which, in the opinion of the officer of Sales Tax, is relevant to such audit, inquiry or investigation.
(3) The Board may require, in writing, any person, department, company or organization, as the case may be, to provide any information or data held by that person, department, company or organization, which, in the opinion of the Board, is required for purposes of formulation of policy or administering the Customs, Sales Tax, Federal Excise or Income Tax.
(4) Every person, department, company or organization shall furnish the information requisitioned by the Board or the officer of Sales Tax under sub-section (2) or (3), within the time specified in the
notice issued by the Board or, as the case may be, the officer of Sales Tax.”;
(12) section 40A shall be omitted;
(13) in section 45, the existing section shall be numbered as sub-section (1) of that section and thereafter the following new sub-section shall be added, namely:-
“(2) Notwithstanding anything contained in sub-section (4) of section 11 and sub-section (3) of section 36 or any other provision of the Act or any other law for the time being in force and notwithstanding any decision or judgment of any forum, authority or court, the time for adjudication in all the cases pending as on 30th June, 2006, shall be deemed always to have been extended up to 31st December, 2006, from the date on which the time-limit prescribed under sub-section (4) of section 11 and sub-section (3) of section 36, expires.”;
(14) in section 45B, sub-section (4) shall be omitted;
(15) in section 46, in sub-section (1), for the words “the Sales Tax Department”, the words “an officer of Sales Tax not below the rank of an Additional Collector” shall be substituted;
(16) in section 47,–
(a) in sub-section (1), for the words “Deputy Collector”, the words and commas “an Additional Collector, authorized by the Collector,” shall be inserted;
(b) in sub-section (7), in the proviso, after the word “application”, the words “by an Additional Collector authorized” shall be inserted;
(c) in sub-section (10), after the word “the” the words “Additional Collector authorized by the” shall be inserted; and (d) after sub-section (10), the following new sub-section shall be added, namely:-
“(11) Notwithstanding anything contained in any provision of this Act, where any reference or appeal was filed with the approval of Collector by the officer of lower rank than the Collector, and the reference or appeal is pending before an appellate forum or the Court, such reference or appeal shall always be deemed to have been so filed by the Collector.”; (17) in section 47A,–
(a) in the marginal note, for the word “Alternate”, the word “Alternative” shall be substituted;
(b) in sub-section (1), after the word “tax” appearing for the first time the words and comma “pending before an Appellate authority or the High Court,” shall be inserted;
(c) for sub-section (2) the following shall be substituted, namely:-
“(2) The Board may, after examination of the application of a registered person, appoint a committee consisting of an officer of sales tax not below the rank of an Additional Collector and two persons from the notified panel consisting of retired Judges not below District and Sessions Judge, chartered or cost accountants, advocates, representatives of trade bodies or associations, or any other reputable taxpayers, for the resolution of dispute.”; and
(d) for sub-section (5), the following shall be substituted, namely:-
“(5) The registered person may make payment of sales tax and other duty and taxes as determined by the Board in its order under sub-section (4), and such order of the Board shall be submitted before the forum, tribunal or the Court where the matter is sub-judice, for consideration and orders as deemed appropriate.”;
(18) after section 50, the following new section shall be inserted, namely:-

“50A. Computerized system.—(1) The Board may prescribe the use of computerized system for carrying out the purposes of this Act, including the receipt of applications for registration, returns and such other declarations or information required to be provided under this Act and the rules made thereunder, from such date and for such registered persons or class of persons as the Board may, by notification in the official Gazette, specify.
(2) The Board may make rules for regulating the conduct and transaction of business in relation to the submission of returns or other information to the Board by the persons required to transmit or receive any information through the computerized system, including their authorization, suspension and cancellation of authorization and for security of the information transmitted or received through the computerized system.”;
(19) after section 52, the following new section shall be added, namely:-
“52A. e-intermediaries to be appointed.— (1) Subject to such conditions, limitations and restrictions, the Board may, by a notification in the official Gazette, appoint a person to electronically file return under Chapter V and such other documents electronically, as may be prescribed from time to time, on behalf of a person registered under section 14.
(2) A person registered under section 14 may authorize an eintermediary to electronically file return or any other documents, as specified in sub-section (1).
(3) The return or such other documents filed by an e-intermediary on behalf of a registered person shall be deemed to have been filed by that registered person.
(4) Where this Act requires anything to be done by the registered person and if such thing is done by an e-intermediary authorized by the registered person under sub-section (2), unless the contrary is proved, shall be deemed to have been done with the knowledge and consent of such registered person so that in any proceedings under this Act, the registered person shall be liable as if the thing has been done by him.
(5) Where an e-intermediary, authorized by a registered person under sub-section (2) to act on his behalf, knowingly or willfully submits a false or incorrect information or document or declaration
with an intent to avoid payment of tax due or any part thereof or claiming a tax credit or a refund that is not due to the registered person, such e-intermediary shall be jointly and severally responsible
for recovery of the amount of tax short paid or the amount refunded in excess as a result of such incorrect or false information or document or declaration, without prejudice to any other action that may be taken against him under the relevant provisions of the law.
(6) The Board may, by notification in the official Gazette, prescribe rules for the conduct and transaction of business of e- intermediaries, including their appointment, suspension and cancellation of appointment, subject to such conditions as specified therein.”;
(20) in the Third Schedule,–
(a) for serial number 17 in column (1), for the entries in columns (2) and (3), the following shall be substituted, namely:-
“17. Toilet paper and tissue paper 4818.1000 and 4818.2000”; and
(b) after serial number 17 in column (1) and the entries relating thereto in columns (2) and (3), substituted as aforesaid, the following new serial numbers and the entries relating thereto shall be added, namely:-
“18. Spices sold in retail packing bearing brand names and trade marks
09.04, 09.06, 09.08 and 09.10
19. Electric bulbs including energy saving lamps and fluorescent tube lights 85.39
20. Snacks including potato chips sold in retail packing 19.05 and 20.05
21. Shoe polish and shoe cream 3405.1010”; and (21) in the Sixth Schedule, in column(1),–
(a) serial numbers 4, 5, 6, 7, 8, 9, 10 and 40 and the entries relating thereto in columns (2) and (3) shall be omitted; and
(b) for serial number 43, and the entries relating thereto in columns
(2) and (3), the following shall be substituted, namely:-
“43. Aircrafts 8802.2000, 8802.3000 and 8802.4000”.

17. Amendment of the Income Tax Ordinance, XLIX of 2001.– The following further amendments shall be made in the Income Tax Ordinance, 2001 (XLIX of 2001), namely:–
(1) in section 2,-
(a) after clause (3C), the following new clauses shall be inserted, namely:-
“(3D) “Approved Employment Pension or Annuity Scheme” means any employment related retirement scheme approved under this Ordinance, which makes periodical payment to a beneficiary i.e. pension or annuity such as approved superannuation fund, public sector pension scheme and
Employees Old-Age Benefit Scheme; (3E) “Approved Occupational Savings Scheme” means any approved gratuity fund or recognized provident fund;”;
(b) in clause (13B), the comma and words “, but not exceeding five hundred thousand rupees in a tax year” shall be omitted;
(c) in clause (19A),-
(i) the words “but does not include an individual who is entitled to benefit under any other approved employment pension or annuity scheme”, shall be omitted;
(ii) for the semicolon, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that the total tax credit available for the contribution made to approved employment pension or annuity scheme and approved pension fund under Voluntary Pension System Rules, 2005, should not exceed the limit prescribed or specified in section 63.”;
(d) in clause (41),-
(i) after the letter “a”, occurring for the second time, the word “fixed” shall be inserted;
(ii) in sub-clause (c), after the word “project”, occurring for the second time, the words “but only where such site, project and its connected supervisory activities continue for a period or periods aggregating more than ninety days within any twelve-months period” shall be added; and
(e) after clause (47), the following new clauses shall be inserted, namely:-
“(47A) “Real Estate Investment Trust (REIT)” means a scheme which consists of a closed-end collective investment scheme constituted as a unit trust fund and managed by a REIT management company for the purposes of investment in real estate, approved and authorized by the Security and Exchange Commission of Pakistan under the Real Estate Investment Trust Rules, 2006”;
(47B) “Real Estate Investment Trust Management Company” means a company licensed by the Security and Exchange Commission of Pakistan under the Real Estate Investment Trust Rules, 2006.”;
(2) in section 15, after sub-section (5), the following new sub-section shall be added, namely:-
“(6) Income under this section shall be liable to tax at the rate specified in Division VI of Part I of the First Schedule.”; (3) section 17, shall be omitted;
(4) in section 21,- (i) clause (k), shall be omitted;
(ii) for clause (l), the following shall be substituted, namely,-
“(l) any expenditure for a transaction, paid or payable under a single account head which, in aggregate, exceeds fifty thousand rupees, made other than by a crossed cheque drawn on a bank or by crossed bank draft or crossed pay order or any other crossed banking instrument showing transfer of amount from the business bank account of the taxpayer:
Provided that online transfer of payment from the business account of the payer to the business account of payee as well as payments through credit card shall be treated as transactions through the banking channel, subject to the condition that such transactions are verifiable from the bank statements of the respective payer and the payee:
Provided further that this clause shall not apply in the case of–
(a) expenditures not exceeding ten thousand rupees;
(b) expenditures on account of –
(i) utility bills;
(ii) freight charges;
(iii) travel fare;
(iv) postage; and
(v) payment of taxes, duties, fee, fines or any other statutory obligation;”;
(5) in section 39, in sub-section (3), the word “card” shall be omitted;
(6) in section 49, after sub-section (2), the following new sub-section shall be added, namely:-
“(3) Subject to sub-section (2), any payment received by the Federal Government, a Provincial Government or a local authority shall not be liable to any collection or deduction of advance tax.”.
(7) in section 62, in sub-section (2), in paragraph C, in clause (c), for the words “one hundred and fifty”, the words “two hundred” shall be substituted;
(8) in section 63, in sub-section (2) , in paragraph C, in clause (ii),- (a) after the word “the”, occurring for the first time, the word “eligible” shall be inserted;
(b) for the words “a person” the words “an eligible person” shall be substituted;
(c) for the words, figure and commas “of the notification of the Voluntary Pension System Rules, 2005,” the words, figures and comma “starting from July 1, 2006” shall be substituted; and
(d) after sub-section (2) , the following sub-section shall be added, namely:-
“(3) The transfer by the members of approved employment pension or annuity scheme or approved occupational saving scheme of their existing balance to their individual pension accounts maintained with one or more pension fund managers shall not qualify for tax credit under this section.”;
(9) in section 82, in clause (a), for the word “eighty-two” the word “eighty-three” shall be substituted;
(10) in section 113B, the words and commas “of textile fabrics and articles of apparel including ready-made garments or fashion wear, articles of leather including footwear, carpets, surgical goods and sports goods”, shall be omitted;
(11) in section 114, in sub-section (1),-
(a) after clause (ab), the following new clauses shall be inserted, namely:-
“(ac) any non-profit organization as defined in clause (36) of section 2; and
(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;”; and
(b) in clause (b), for the brackets, letters and word “(a) or (ab)”, the brackets, letters, commas and word “(a), (ab), (ac) or (ad)” shall be substituted;
(12) in section 115, in sub-section (4),-
(a) after the comma, occurring for the third time, “,” the figure and comma “15,” shall be inserted;
(b) after the comma, occurring for the sixth time, “,” the words, brackets, letters, commas and figures “clauses (a), (b) and (d) of sub-section (1) of section 151, section 152,” shall be inserted;
(13) after section 122A, the following new section shall be inserted, namely:-
“122B. Revision by the Regional Commissioner.- (1) The Regional Commissioner may, either of his own motion or on an application made by the taxpayer for revision, call for the record of any proceedings relating to issuance of an exemption or lower rate certificate with regard to collection or deduction of tax at source under this Ordinance, in which an order has been passed by any authority subordinate to him.
(2) Where, after making such inquiry as is necessary, Regional Commissioner considers that the order requires revision, the Regional Commissioner may, after providing reasonable opportunity of being
heard to the taxpayer, make such order as he may deem fit in the circumstances of the case.”;
(14) in section 134A,-
(a) in the heading, for the word “Alternate” the word “Alternative” shall be substituted; and
(b) for sub-section (1), the following shall be substituted, namely:-
“(1) Notwithstanding any other provision of this Ordinance, or the rules made thereunder an aggrieved person, in connection with any matter pending before an Appellate Authority, may apply to Board for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application.”;
(c) in sub-section (5),-
(i) in the first proviso, the commas and words “, in case the matter is already sub-judice before any authority or tribunal or the court,” shall be omitted; and
(ii) after the word “court” the words “where the matter is subjudice” shall be inserted;
(15) in section 147,-
(a) in sub-section (1), after clause (c), the following new clause shall be inserted, namely:-
“(ca) income chargeable to tax under section 233 and clauses
(a) and (b) of sub-section (1) of section 233A;”;
(b) sub-section (4A), shall be re-numbered as sub-section (4B) and before sub-section (4B), re-numbered as aforesaid, the following new sub-section shall be inserted, namely:-
“(4A) Any taxpayer who is required to make payment of advance tax in accordance with sub-section (4), shall estimate the tax payable by him for the relevant tax year, at any time before the last installment is due. In case the tax payable is likely to be more than the amount he is required to pay under sub-section (4), the taxpayer shall furnish to the Commissioner an estimate of the amount of the tax payable by him and thereafter pay such amount after making adjustment for the amount (if any) already paid in terms of sub-section (4).”; (16) in section 148:-
(a) in sub-section (3), for the word “one hundred”, the word “seventy five” shall be substituted;
(b) for sub-section (7), the following shall be substituted, namely:-
“(7) The tax collected under this section shall be a final tax on the income of the importer arising from the imports subject to sub-section (1) and this sub-section shall not apply in the case of import of–
(a) raw material, plant, machinery, equipment and parts by an industrial undertaking for its own use;
(b) fertilizer by manufacturer of fertilizer; and
(c) cars in CBU condition by manufacturer of cars.”;
(17) in section 151, after sub-section (2), the following new sub-section shall be added, namely,-
“(3) Tax deducted under this section shall be a final tax on the profit on debt arising from transactions referred to in clauses (a), (b) and (d) of sub-section (1).”;
(18) in section 152, after sub-section (1), the following new sub-sections shall be inserted, namely:-
“(1A) Every person making a payment in full or part (including a payment by way of advance) to a non-resident person on the execution of –
(a) a contract or sub-contract under a construction, assembly or installation project in Pakistan, including a contract for the supply of supervisory activities in relation to such project; or
(b) any other contract for construction or services rendered relating thereto; or (c) a contract for advertisement services rendered by T.V. Satellite Channels, shall deduct tax from the gross amount payable under the contract at the rate specified in Division II of Part III of the First Schedule.
(1B) The tax deducted under sub-section (1A) shall be a final tax on the income of a non-resident person arising from a contract.”;
(19) in section 153,-
(a) after sub-section (1), the following new sub-section shall be inserted, namely:-
“(1A) Every exporter or an export house making a payment in full or part including a payment by way of advance to a resident person or permanent establishment in Pakistan of a nonresident person for the rendering of or providing of services of stitching, dying, printing, embroidery, washing, sizing and weaving, shall at the time of making the payment, deduct tax from the gross amount payable at the rate specified in Division IV of Part III of the First Schedule.”;
(b) sub-section (3) shall be omitted;
(c) in sub-section (6)-
(i) the words and brackets “clause (a) or (c) of” shall be omitted;
(ii) after the brackets and figure “(1)”, the word, figure, letter and brackets “and (1A)” shall be inserted;
(d) sub-section (7), shall be omitted;
(e) after sub-section (8), the following new sub-section shall be inserted, namely:-
“(8A) Every person from whom tax is being collected under this section shall disclose his National Tax Number to the withholding agent. In case of there being no National Tax Number (NTN), Computerized National Identity Card Number (CNIC) shall be provided. Where a person fails to disclose his NTN or CNIC number, as the case may be, at the time of collection or deduction of tax, the rate of withholding tax shall be two per cent over and above the rates specified in Division
III of Part III of the First Schedule;”;
(f) in sub-section (9),-
(a) in clause (d), the word “or” shall be omitted;
(b) in clause (e), after the semicolon, the word “or” shall be inserted; and
(c) after clause (e), amended as aforesaid, the following new clause shall be inserted, namely:-
“(f) an exporter or an export house for the purpose of sub-section (1A).”;
(g) clauses (i) and (iv) of SRO. 600(I)/91 dated 2nd July, 1991 shall be omitted.
(20) in section 154, in sub-section (4), for the word, figures, brackets and commas “sub-section (1), (3), (3A) or (3B)” the words “this section” shall be substituted;
(21) in section 155,-
(a) in sub-section (1), for the words, brackets, figure and comma “subject to sub-section (2), every” the word “Every” shall be substituted;
(b) for sub-section (2) the following sub-section shall be substituted, namely:-
“(2) The tax deducted under sub-section (1) shall be a final tax on the income from property.”;
(c) for sub-section (3), the following shall be substituted, namely:-
“(3) In this section, “prescribed person” means –
(i) the Federal Government;
(ii) a Provincial Government;
(iii) local authority;
(iv) a company;
(v) a non-profit organization;
(vi) a diplomatic mission of a foreign state; or
(vii) any other person notified by the Central Board of Revenue for the purpose of this section.”;
(22) in section 156B, in sub-section (1),-
(a) in clause (a), for the semicolon, at the end, a colon shall be substituted and thereafter the following provisos shall be added, namely:-
“Provided that the tax shall not be deducted in case of the eligible person suffering from any disability as mentioned in sub-rule (2) of rule 17 of the Voluntary Pension System Rules, 2005 which renders him unable to continue with any employment at the age which he may so elect to be treated as the retirement age or the age as on the date of such disability if not so elected by him:
Provided further that the tax shall not be deducted on the share of the nominated survivor of the deceased eligible person and would be treated as if the eligible person had reached the age of retirement.”;
(b) after clause (b), for the proviso the following shall be substituted, namely:-
“Provided that the tax shall not be deducted in case, the balance in the eligible persons’ individual pension account is invested in an approved income payment plan of a pension fund manager or paid to a life insurance company for the purchase of an approved annuity plan or is transferred to an other individual pension account of the eligible person or the survivors’ pension account in case of death of the eligible person maintained with any other pension fund manager as specified in the Voluntary Pension System Rules, 2005.”;
(23) in section 165,-
(a) in sub-section (2), after the letter “a”, occurring for the second time, the word and comma “monthly,” shall be inserted;
(b) after sub-section (2), the following new sub-sections shall be added, namely:-
“(3) Central Board of Revenue may prescribe a statement requiring any person to furnish information periodically in respect of any transactions in the prescribed form and verified in the prescribed manner.
(4) A person required to furnish a statement under subsection (2), may apply in writing, to the Commissioner for an extension of time to furnish the statement after the due date and the Commissioner if satisfied that a reasonable cause exists for non-furnishing of the statement by the due date may, by an order in writing, grant the applicant an extension of time to furnish the statement.
(5) The Board may make rules relating to electronic furnishing of statements under this section including,-
(a) mandatory electronic filing of statements; and
(b) determination of eligibility of the data of such statements and e-intermediaries, etc.”;
(24) in section 168, in sub-section (3),-
(a) after the comma, occurring after the figure “148” the words, brackets, commas and figures “clauses (a), (b) and (d) of subsection
(1) of section 151, sub-section (1B) of section 152,” shall be inserted;
(b) for the words, brackets and figures “sub-sections (6) or (7)”, the word, brackets and figure “sub-section (6)” shall be substituted;
(c) after the figure and comma “154,” the word, figure and comma “section 155,” shall be inserted; and
(d) after the comma, occurring after the figure “156”, the words, brackets, figures, commas and letters “sub-section (2) of section 156A, section 233, clauses (a) and (b) of sub-section
(1) of section 233A” shall be inserted;
(25) in section 169, in sub-section (1), in clause (b),-
(a) after the word “under”, the words, brackets, letters, figures, and commas “clauses (a), (b) and (d) of sub-section (1) of section 151, sub-section (1B) of section 152,” shall be inserted; and
(b) for the words, brackets and figures “sub-sections (6) or (7)”, the word, brackets and figure “sub-section (6)” shall be substituted; and
(c) after the figure and comma “154,” the word, figure and comma “section 155,” shall be inserted;
(26) in section 205, in sub-section (1B),-
(a) after the word “sub-section” the brackets, figure, letter and word “(4A) or” shall be inserted; and
(b) for the word “eighty”, occurring twice, the word “ninety” shall be substituted;
(27) in section 206, for sub-section (2), the following shall be substituted, namely:-
“(2) A circular issued by the Central Board of Revenue shall be binding on all Income Tax Authorities and other persons employed in the execution of the Ordinance, under the control of the said Board other than Commissioners of Income Tax (Appeals).”;
(28) in section 231A, for sub-section (1), the following shall be substituted, namely:-
“(1) Every banking company shall deduct tax at the rate specified in Division VI of Part IV of the First Schedule, if the payment for cash withdrawal, or the sum total of the payments for cash withdrawal in a day, exceeds twenty-five thousand rupees.”;
(29) in section 233, in sub-section (1), the word “resident” shall be omitted; and
(30) in the First Schedule,-
(i) in Part I,
(a) in Division-I,–
(i) in clause (1),–
(a) for the word “clauses” the word “clause” shall be substituted;
(b) the word, brackets and figure “and (2)” shall be omitted; and
(c) for the Table the following shall be substituted, namely:-

TABLE
S. No. Taxable income Rate of tax.
(1) (2) (3)
1. Where the taxable income does not exceed Rs.100,0000%
2 Where the taxable income exceeds 0.50%
Rs.100,000 but does not exceed Rs.110,000
3 Where the taxable income exceeds Rs.110,000 but does not exceed Rs.125,000 1.00%
4. Where the taxable income exceeds Rs.125,000 but does not exceed Rs.150,000 2.00%
5. Where the taxable income exceeds Rs.150,000 but does not exceed Rs.175,000 3.00%
6. Where the taxable income exceeds Rs.175,000 but does not exceed Rs.200,000 4.00%
7. Where the taxable income exceeds Rs.200,000 but does not exceed Rs.300,000 5.00%
8. Where the taxable income exceeds Rs.300,000 but does not exceed Rs.400,000 7.50%
9. Where the taxable income exceeds Rs.400,000 but does not exceed 10.00% Rs.500,000
10. Where the taxable income exceeds Rs.500,000 but does not exceed Rs.600,000 12.50%
11. Where the taxable income exceeds Rs.600,000 but does not exceed Rs.800,000 15.00%
12. Where the taxable income exceeds Rs.800,000 but does not exceed Rs.10,00,000 17.50%
13. Where the taxable income exceeds Rs.10,00,000 but does not exceed Rs.13,00,000 21.00%
14. Where the taxable income exceeds Rs.13,00,000 25.00%
Provided that where income of a woman taxpayer is covered by this clause, no tax shall be charged if the taxable income does not exceed Rs.125,000/-.” (ii) in clause (1A),-
(a) for the Table the following shall be substituted, namely,-

TABLE
S. No. Taxable income Rate of tax.
(1) (2) (3)
1. Where the taxable income does not exceed Rs.150,000 0%
2 Where the taxable income exceeds Rs.150,000 but does not exceed Rs.200,000 0.25%
3. Where the taxable income exceeds Rs.200,000 but does not exceed Rs.250,000 0.50%
4. Where the taxable income exceeds Rs.250,000 but does not exceed Rs.300,000 0.75%
5. Where the taxable income exceeds Rs.300,000 but does not exceed Rs.350,000 1.50%
6. Where the taxable income exceeds Rs.350,000 but does not exceed Rs.400,000 2.50%
7. Where the taxable income exceeds 3.50% Rs.400,000 but does not exceed Rs.500,000
8. Where the taxable income exceeds Rs.500,000 but does not exceed Rs.600,000 4.50%
9. Where the taxable income exceeds Rs.600,000 but does not exceed Rs.700,000 6.00%
10. Where the taxable income exceeds Rs.700,000 but does not exceed Rs.850,000 7.50%
11. Where the taxable income exceeds Rs.850,000 but does not exceed Rs.950,000 9.00%
12. Where the taxable income exceeds Rs.950,000 but does not exceed Rs.1,050,000 10.00%
13. Where the taxable income exceeds Rs.1,050,000 but does not exceed Rs.1,200,000 11.00%
14. Where the taxable income exceeds Rs.1,200,000 but does not exceed Rs.1,500,000 12.50%
15. Where the taxable income exceeds Rs.1,500,000 but does not exceed Rs.1,700,000 14.00%
16. Where the taxable income exceeds Rs.1,700,000 but does not exceed Rs.2,000,000 15.00%
17. Where the taxable income exceeds Rs.2,000,000 but does not exceed Rs.3,150,000 16.00%
18. Where the taxable income exceeds Rs.3,150,000 but does not exceed Rs.3,700,000, 17.50%
19. Where the taxable income exceeds Rs.3,700,000 but does not exceed Rs.4,450,000, 18.50%
20. Where the taxable income exceeds Rs.4,450,000 but does not exceed Rs.8,400,000, 19.00%
21. Where the taxable income exceeds Rs.8,400,000. 20.00%
Provided that where income of a woman taxpayer is covered by this clause, no tax shall be charged if the taxable income does not exceed Rs.200,000/-.”;
(iii) clause (2), shall be omitted;
(b) in Division III, in clause (a), after the word “company”, occurring for the second time, the words “or any other resident company” shall be inserted;
(c) after Division V, the following new Division shall be added, namely,-
“DIVISION VI
INCOME FROM PROPERTY
The rate of tax to be paid under section 15 shall be 5% of the gross amount of rent received.”;
(ii) in Part III,-
(a) for Division I, the following shall be substituted, namely:-
“DIVISION-I
PROFIT ON DEBT
The rate of tax to be deducted under section 151 shall be 10% of the yield or profit paid.”;
(b) for Division II, the following shall be substituted, namely:-
“Division II
Payments to non-residents”
(1) The rate of tax to be deducted from a payment referred to in sub-section (1A) of section 152 shall be 6% of the gross amount payable.”;
(2) The rate of tax to be deducted under sub-section
(2) of section 152 shall be 30% of the gross amount paid.
(c) in Division III;
(i) for clause (2), the following shall be substituted, namely:-
“(2) the rate of tax to be deducted from a payment referred to in clause (b) of sub-section
(1) of section 153 shall be 6% of the gross amount payable.”;
(ii) clause (4) shall be omitted; and
(d) in Division IV, in clause (1), for the brackets, figures and word “(1) or (3)”, the brackets, figures, commas, word and letters “(1), (3), (3A) or (3B)” shall be substituted; and
(iii) in Part IV,-
(a) for Division II, the following shall be substituted.
“DIVISION–II
BROKERAGE AND COMMISSION
The rate of collection under sub-section (1) of section 233 shall be 10% of the amount of the payment”;
(b) in Division IIA, the figure “0.005”, wherever occurring, the figure “0.01” shall be substituted;
(c) in Division VI, for the figure “0.1” the figure “0.2” shall be substituted;
(31) in the Second Schedule-,
(i) in Part I,-
(a) in clause (4), after the word “vessel” the words and figure “or on Pakistan flag vessels for 183 days or more during a tax year” shall be inserted;
(b) for clause (9), the following shall be substituted, namely:-
“(9) Any pension –
(i) received in respect of services rendered by a member of the Armed Forces of Pakistan or Federal Government or a Provincial Government;
(ii) granted under the relevant rules to the families and dependents of public servants or members of the Armed Forces of Pakistan who die during service.”;
(c) for clause (66), the following shall be substituted, namely:-
“(66) Any income derived by-
i. Abdul Sattar Edhi Foundation, Karachi;
ii. Al-Shifa Trust, Rawalpindi.
iii. Bilquis Edhi Foundation, Karachi.
iv. Fatimid Foundation, Karachi.
v. Hamdard Laboratories (Waqf) Pakistan.
vi. International Islamic Trade Finance Corporation”.
vii. Islamic Corporation for Development of Private Sector;
viii. National Memorial Bab-e-Pakistan Trust for the assessment year commencing on or after the 1st day of July, 1994.
ix. Pakistan Agricultural Research Council, Islamabad.
x. Pakistan Engineering Council;
xi. The corporatized entities of Pakistan Water and Power Development Authority from the date of their creation upto the date of completion of the process of corporatization i.e. till the tariff is notified.
xii. The Institution of Engineers, Pakistan, Lahore.
xiii. The Institutions of the Agha Khan Development Network (Pakistan) as contained in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and the Agha Khan Development Network.
xiv. The Liaquat National Hospital Association, Karachi.
xv. The Pakistan Council of Scientific and Industrial Research.
xvi. The Pakistan Water and Power Development Authority established under the Pakistan Water and Power Development Authority Act, 1958 (W. P. Act XXXI of 1958).”; (d) in clause (57),-
(i) in sub-clause (2), after the word and comma “scheme,” the words “or a real estate investment trust” shall be inserted; (ii) in sub-clause (3), in paragraph (ix), for the full stop, at the end, a semicolon shall be substituted and thereafter the following new sub-clause shall be added, namely:-
“(x) the accumulated balance upto 25% received from the voluntary pension system offered by a pension fund manager under the Voluntary Pension System Rules, 2005 at the time of eligible person’s:
(a) retirement; or
(b) disability rendering him unable to work; or
(c) death by his nominated survivors.”;
(e) in clause (58), in sub-clause (3), for the words “the Central Board of Revenue” the words Regional
Commissioner of Income Tax” shall be substituted;
(f) for clause (72), the following clause shall be substituted, namely:-
“(72) Any profit on debt payable to a non-resident person,-
(i) in respect of such private loan to be utilized on such project in Pakistan as may be approved by the Federal Government for the purposes of this clause, having regard to the rate of profit and the terms of repayment of the loan and the nature of project on which it is to be utilized;
(ii) on a loan in foreign exchange against export letter of credit which is used exclusively for export of goods manufactured or processed for exports in Pakistan;
(iii) being a foreign individual, company, firm or association of persons in respect of a foreign loan as is utilized for industrial investment in Pakistan provided that the agreement for such loan is concluded on or after the First day of February 1991, and is duly registered with the State Bank of
Pakistan.”;
(g) in clause (99), after the colon, the following proviso shall be inserted, namely:-
“Provided that the exemption under this clause shall not be available in respect of any markup rising from investment in Carry Over Trade (COT) transactions in the Stock Exchanges:”;
(h) in clause (101), for the figure “2007” the figure “2014”shall be substituted;
(i) after clause (102), the following new clause shall be inserted, namely:-
“(102A) Income of a person as represents a subsidy granted to him by the Federal Government for the purposes of implementation of any orders of the Federal Government in this behalf.”;
(j) in clause (132), in the second proviso, for the words, figures and comma “on or after 22nd October, 2002”, the words, figures and commas “between 22nd October, 2002 and 30th June, 2006”, shall be substituted;
(k) in clause (133), in the Explanation, in paragraph (b), after the word “operations” the comma and words “, locally produced television programs” shall be inserted;
(l) in clause 133A,-
(a) after the word “Pakistan” the words “along with a room in the Stock Exchange” shall be inserted;
and
(b) for the figure “2006”, the figure “2007” shall be substituted;
(m) clauses (10), (11), (14), (15), (18), (38), (42), (43), (44), (45), (46), (47), (48), (49), sub-clauses (xxi) and (xxii) of clause (61), (63), (67), (68), (69), (70), (71), (71A), (73), (76), (95), (96), (97), (106), (106A), (120) and (137) shall be omitted;
(ii) in Part II,-
(a) clauses (11) and (12) shall be omitted;
(b) for clause (13G), the following clauses shall be substituted, namely:-
“(13G) Tax under section 148 on the following items shall be collected @ 1% of their import value as increased by customs duty and sales tax, if any levied thereon:
i. Capital goods;
ii. Cement;
iii. Coal;
iv. Gold;
v. Mobile telephone sets;
vi. Silver;
vii. Sugar;
viii. Wheat;
ix. Raw wood;
x. Trucks in CBU condition having Gross Vehicle Weight exceeding 5 tons classified under PCT headings 8704.3290 and 8704.9090;
xi. Dump trucks classified under PCT heading 8704;
xii. Buses classified under PCT heading 8702.1090;
xiii. medical, surgical, dental or veterinary machinery/ equipment, fixtures, fittings, furniture and diagnostic kits not manufactured locally covered by SRO 575(i)/2006 dated 05.06.2006 under the
Customs Act, 1969; .
xiv. equipments relating to call centers not manufactured locally covered by SRO 575(i)/2006 dated 05.06.2006 under the Customs Act, 1969;
xv. Disinfectants used in poultry business covered by SRO
567(i)/2006 dated 05.06.2006 under the Customs Act, 1969;
xvi. pre-fabricated structures for poultry farms covered by SRO 567(i)/2006 dated 05.06.2006 under the Customs Act, 1969;
xvii. live stock and raw materials and intermediaries goods as used in the manufacture of packing material for the packing of dairy products covered by SRO 567(i)/2006 dated 05.06.2006 under the
Customs Act, 1969;
xviii. ripening chambers, hot water treatment plant, vapor hot treatment plant, modern cold storage, packing machinery, power generating sets of 10 – 25 KVA and battery operated fork lift trucks used in horticulture and floriculture business covered by SRO 575(i)/2006 dated 05.06.2006 under the Customs Act, 1969;
xix. processing and packing machinery/equipment required for fish farming covered by SRO 75(i)/2006 dated 05.06.2006 under the Customs Act, 1969;
xx. medicines for cancer, drugs used for kidney dialysis and kidney transplant, all type of vaccines for Hepatitis, Interferon and other medicines for Hepatitis, all vaccines/anti-sera, cardiac medicines, injection anti-D Immunoglobulin, blood bags CPDA.1, all medicines for HIV/AIDS and all medicines
for Thalassemia covered by SRO 567(i)/2006 dated 05.06.2006 under the Customs Act, 1969;
xxi. Broadcasting equipments covered by SRO 575(i)/2006 dated 05.06.2006 under the Customs Act, 1969;
xxii. News print covered by SRO 567(i)/2006 dated 05.06.2006 under the Customs Act, 1969 “Explanation.- Capital goods mean any plant, machinery, equipment, spares and accessories, classified in Chapters 84, 85 or any other Chapter of the Pakistan Customs Tariff, required for,-
(i) the manufacture or production of any goods, and includes refractory bricks and materials required for setting up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like;
(ii) use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, live stock, dairy and poultry industry;
(iii) service sector as defined in Customs Act, 1969;
This clause shall supercede clause (iv) of SRO.593(I)/91 dated 30th June, 1991. (13H) Tax under section 48 on the following items shall be collected @ 2% of their import value as increased by customs duty and sales tax, if any levied thereon:
(i) raw material for steel industry including remeltable; and re-rollable scrap;
(ii) raw material for manufacturer of poultry feed; and
(iii) stationery.”;
(c) in clause (25), after the word “of”, occurring for the first time, the words and commas “sizing, weaving,” shall be inserted.
(iii) in Part III-,
(a) in clause (1A), for the figure “65”, the figure “60”, shall be substituted;
(b) for clause (2), the following shall be substituted, namely,-
“(2) The tax payable by a full time teacher or a researcher, employed in a non profit education or research institution duly recognized by Higher Education Commission, a Board of Education or a University recognized by the Higher Education Commission, including government training and research institution, shall be reduced by an amount equal to 75% of tax payable on his income from salary.”;
(iv) in Part IV-,
(a) in clause (11),-
(i) in sub-clause (i), after the figure “2003” the words and comma “or a real estate investment trust approved and authorized under the Real Estate Investment Trust Rules, 2006” shall be inserted;
(ii) in sub-clause (xv), the word “and” shall be omitted;
(iii) in sub-clause (xvi), for the full stop, at the end, a colon and the word “and” shall be substituted and thereafter the following new sub-clause shall be inserted, namely:-
“(xvii) a morabaha bank or a financial institution approved by the State Bank of Pakistan or the
Securities and Exchange Commission of Pakistan (SECP), as the case may be, for the purpose of
Islamic Banking and Finance in respect of turnover under a morabaha arrangement.”;
(b) in clause (33), after the figure “1995” the words, commas and figures “or a real investment trust, approved and authorized under the Real Estate Investment Trust Rules, 2006, established and managed by a REIT management company licensed under the Real Estate Investment Trust Rules, 2006” shall be inserted;
(c) in clause (41), for the brackets, words and figures “ (7) of section 153”, the brackets, figures, letter and words “(1B) of section 152” shall be substituted;(d) in clause (56),-
(i) for sub-clauses (vi), (vii) and (x) the following shall be substituted, namely:-
“(vi) Liquefied Petroleum Gas (LPG)
(vii) Liquefied Natural Gas (LNG)
(x) Radio Navigational Aid Apparatus imported for an airport or on after First January, 2006.”;
(ii) sub-clauses (xi), (xiii) and (xvi) shall be omitted;
(e) in clause (57),-
(i) after the word “sections” the figure and comma “113,” shall be inserted;
(ii) in the proviso, for the full stop, at the end, a colon shall be substituted and thereafter the following
new proviso shall be inserted, namely:-
“Provided further that the exemption from application of section 113 shall be available for the first ten tax years, starting from the tax year in which the business operations commenced.”;
(f) in clause (60), for the letters “NTISB” the words, bracket and letters “Cabinet Division (NTISB)” shall be substituted;
(32) in the Third Schedule, in Part I, in the Table, against serial No. III, after the word “items”, comma and words “, machinery and equipment used in manufacture of I.T. products” shall be inserted.

18. Amendment of Ordinance LV of 2001.- In the Microfinance Institutions Ordinance, 2001 (LV of 2001), the following further amendments shall be made, namely:-
(1) in section (2),-
(a) for clause (i) the following shall be substituted, namely:-
“(i) “microfinance institution” means an institution which extends micro credit and allied services to the poor through sources other than public savings and deposits;”; (b) after clause (i), as amended aforesaid, the following new clause shall be inserted; namely:-
“(ia) “microfinance bank” means an institution licensed by State Bank under this Ordinance to establish and operate as microfinance bank;”;
(c) in clause (k), after the word “income” the words “during a year is less than such minimum limit as the State Bank may, from time to time, prescribe” shall be inserted; and (d) in clause (l), after the word “rules” the words “and regulations” shall be inserted.
(2) for section 5, the following shall be substituted, namely:-

“5. Name.- (1) No person other than a licensed microfinance bank shall use with its name the words “Microfinance Bank” or “MFB” or its derivatives or any words or letters which convey that it is a microfinance bank.
(2) Any person or company to whom licence has not been granted under this Ordinance or the licence granted has been cancelled, contravenes, or attempts to contravene or abets the contravention of sub-section (1), the chief executive by whatever name called, a director, a manager and other officer of the company, and the individual and every member of the association or body of individuals shall be deemed to be guilty of such contravention and shall be punishable with imprisonment for a term hich may extend to three years or with fine which may extend to one million rupees or with both.”.
(3) in section 6, in sub-section (2),
(a) n clause (f), after the word “services” the words and commas “and technical, vocational, educational, business development and allied services to the poor and micro enterprises” shall be inserted; and
(b) in clause (s), for the word “securities”, the words and commas “and such other marketable securities as the State Bank may, from time to time, notify” shall be substituted. (4) in section 9, after clause (a), the following new clause shall be inserted, namely:-
“(aa) a region comprising up to five adjacent districts within the same Province or any other area wherein this Ordinance is applied with necessary adaptations as the case may be;”.
(5) in section 10, after clause (a), the following new clause shall be inserted, namely:-
“(a) one hundred and fifty million rupees or such higher amount as the State Bank may from time to time prescribe for a microfinance bank in a region;”.
(6) for section 12, following shall be substituted, namely:-

“12. Existing microfinance institutions.- Any person performing the functions of a non-deposit taking microfinance institution may make an application to the State Bank on such forms accompanying such information and fee, as may be prescribed, for issuance of a licence to set up microfinance bank and take deposits.
(2) The State Bank may, on receipt of the application, make such inquiries as it considers necessary and either grant a licence for a specified area as permissible under this Ordinance, subject to such conditions as the State Bank may think fit to impose or for reasons to be recorded in writing, reject the application for the licence.
(3) Before granting the licence, the State Bank shall satisfy itself by an inspection of the books of the microfinance institution, programme, project or otherwise, etc , that-
(a) the microfinance institution, project or programme, etc., enjoys a good financial health and is and will be in a position to meet its liabilities; and
(b) the affairs of the microfinance institution are not being, and are not likely to be, conducted in a manner detrimental to the interests of its members and present or future customers.
(4) Where an application of a non-deposit taking microfinance institution for grant of licence to take deposits is rejected, the concerned microfinance institution may continue operations as a no deposit taking microfinance institution.
(5) If the State Bank rejects such an application for grant of licence to take deposits, the applicant may, within thirty days from the date of the order of the State Bank, prefer an appeal to the Central Board of the State Bank and the order passed by the Central Board in this respect shall be final.”
(7) for section 13, the following shall be substituted, namely:-
“13. Setting up new microfinance banks.- (1) Any person meeting the criteria, to be laid down by the State Bank, may apply for a licence to establish any category of microfinance banks as permissible under this Ordinance on such forms accompanying such information and fee as may be prescribed from time to time by the State Bank.
(2) The State Bank may, if satisfied with the capacity and character of the sponsors and Board Members and the overall quality of the application, grant a licence for a specified area as permissible under this Ordinance subject to such conditions as the State Bank may think fit to impose, or otherwise, for reasons to be recorded in writing, reject the application for the licence.”.
(8) after section 13, as amended aforesaid, the following new section shall be inserted, namely:-
“13A. Suspension or cancellation of a licence.- (1) The State Bank may suspend or cancel a licence granted to a microfinance bank if the microfinance bank,-
(a) at any time fails to comply with any of the conditions imposed upon it under sub-section (2) of section 12 or sub-section (2) of section 13, as the case may be;
(b) at any time fails to pay its liabilities or in the opinion of State Bank the affairs of the microfinance bank are conducted in a manner detrimental to its depositors; or
(c) has furnished false or misleading information in its application for a licence; or
(d) has gone into liquidation, suspended its business activities or ceased to carry on business as microfinance bank in Pakistan:
Provided that before suspending or canceling a licence under clause (a) or clause (b), the State Bank, unless it is of opinion that the delay may be prejudicial to the interest of the microfinance bank’s depositors or the public, shall grant to the microfinance bank on such terms as it may specify, an opportunity of taking the necessary steps to comply with or fulfil such conditions.
(2) No licence shall be suspended or cancelled under sub-section
(1) unless and until the microfinance bank is called upon by a notice in writing by the State Bank to show cause within fifteen days as to why its licence should not be suspended or cancelled.
(3) In the event of suspension or cancellation of a licence; the microfinance bank concerned shall be notified forthwith and, from the date of such notification, shall cease to transact any business other
than that required to wind up its affairs with the approval of the State Bank. The State Bank shall publish notice of such suspension or cancellation in one leading Urdu language newspaper and one
English language newspaper in addition to its publication in the official Gazette.
(4) The provisions of sub-section (1) shall not prejudice the rights or claims of any person against the microfinance bank or of the microfinance bank against any person.
(5) A microfinance bank aggrieved by the decision of the State Bank for suspension or cancellation of its licence may, within thirty days from the date on which such decision is communicated to it, apply for review to the Central Board of the State Bank.
(6) The decision of the State Bank, subject to the result of review by the Central Board of the State Bank under sub-section (5), shall be final.”.
(9) in section 16,-
(a) in sub-section 2, in the proviso, for the word “three” the word “five” shall be substituted, and
(b) in sub-section (6), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that in exceptional circumstances the State Bank may, for reasons to be recorded, extend such period up to a period of another one month.”.
(10) in section 18,-
(a) in sub-section (1), in the Explanation,-
(i) in paragraph (b), after the word “both” the commas and words “, or in profit and loss sharing term deposit account with the State Bank” shall be omitted; and
(ii) for paragraph (c), the following shall be substituted, namely:-
“(c) The State Bank shall monitor the liquidity position through such returns and systems as may be prescribed by it from time to time.”; and
(b) for sub-section (2), the following shall be substituted, namely:-
“(2) A microfinance bank shall maintain by way of cash reserve in cash in current account, opened with the State Bank or its agent, a sum equivalent to five per cent of its deposits or such percentage as the State Bank may from time to time notify. The State Bank shall monitor the reserve position 112
through such returns and systems as may be prescribed by it from time to time.”.;
(11) after section 22, the following new sections shall be inserted, namely:-
“22A. Power of the State Bank to remove Directors or other managerial persons from offices.- (1) here the State Bank is satisfied that –
(a) association of any chairman or director or chief executive, by whatever name called, or other officer of a microfinance bank not being lower in rank than a branch manager, is or is likely to be detrimental to the interests of the microfinance bank or its depositors or is otherwise undesirable;
(b) in the public interest;
(c) to prevent the affairs of a microfinance bank being conducted in a manner detrimental to the interest of its depositors or in a manner prejudicial to the interests of the microfinance bank ;or
(d) to secure the proper management of any microfinance bank, it is necessary so to do; the State Bank may, for reasons to be recorded in writing, by order, remove from office, with effect from such date as may be specified in the order, any chairman or director or chief executive officer by whatever name called or other officer, of the microfinance bank.
(2) No order under sub-section (1) shall be made unless the chairman or director or chief executive or other officer has been given a reasonable opportunity of making a representation to the State Bank against the proposed order:
Provided that if, in the opinion of the State Bank, any delay shall be detrimental to the public interest or the interest of the microfinance bank or its depositors, the State Bank may, at the time of giving the opportunity aforesaid or at any time thereafter and pending the consideration of the representation aforesaid, if any, by order direct that-
(a) the chairman or, as the case may be, director, chief executive officer or other officer, shall not, with effect from the date of the order,-
(i) act as such chairman, director, chief executive officer or other officer of the microfinance bank; or
(ii) in any way, whether directly or indirectly, be concerned with, or take part in the management of the microfinance bank; and
(b) any person authorized by the State Bank in this behalf shall act as such chairman, director or chief executive officer of the microfinance bank.
(3) Where any order under sub-section (1) is made in respect of a chairman, director, chief executive officer or other officer of a microfinance bank, he shall forthwith cease to be a chairman or, as the case may be, a director, chief executive officer or other officer of the microfinance bank and shall not in any way, whether directly or indirectly, be concerned with, or take part in the management of the microfinance bank or any other microfinance bank for such period not exceeding three years as may be specified in the order.
(4) Any person appointed as chairman, director or chief executive officer under sub-section (2) shall-
(a) hold office during the pleasure of the State Bank subject to such conditions as may be specified in the order of his appointment and, subject thereto, for such period, not exceeding three years as the State Bank specify in such order; and
(b) not incur any obligation or liability for anything, which is done or intended to be done in his capacity as such chairman, director or chief executive officer.
(5) No person removed from office under sub-section (1) shall be entitled to claim any compensation for the loss or termination of office.

22B. Power of the State Bank to supersede Board of Directors of microfinance banks.- (1) Where the State Bank is satisfied that-–
(a) association of the Board of Directors, by whatever name called, of a microfinance bank, is or is likely to be detrimental to the interests of the microfinance bank or its depositors or otherwise undesirable; or
(b) for all or any of the reasons mentioned in subsection
(1) of section 22A, it is necessary so to do; the State Bank may, for reasons to be recorded in writing, by order, supersede the Board of Directors of a microfinance bank with effect from such date and for such period as may be specified in the order.
(2) The period of supersession specified in an order under subsection (1) may, from time to time, be extended by the State Bank and the total period of such supersession shall in no case exceed three years.
(3) All powers and duties of the Board of Directors shall, during the period of supersession, be exercised and performed by such persons as the State Bank may, from time to time, appoint in this behalf.
(4) The provisions of sub-sections (2), (3), (4), and (5) of section 22A shall, mutatis mutandis, apply to an order made under subsection (1) or sub-section (3).

22C. Limitations.- (1) No order under section 22A or section 22B shall be made except by the Governor of the State Bank on a report by a standing committee set up by the State Bank for the purpose.
(2) Any person or microfinance bank aggrieved by an order made by the Governor of the State Bank under section 22A or section 22B may prefer an appeal to the Central Board of Directors of the State Bank whose decision shall be final.
(3) No action taken under section 22A or section 22B or subsection (2) shall be called in question by or before any court, tribunal or other authority.
22D. Prosecution of directors, chief executive officers or other officers.- Notwithstanding anything contained in section 22A the State Bank may direct prosecution of a director or chief executive officer by whatever name called or other officer who, in its opinion, has knowingly acted in the manner causing loss of depositors’ money or of the income of the microfinance bank.

Explanation.- For the purpose of this section a director, chief executive officer or other officer shall be deemed to have acted knowingly if he has departed from established banking practices and procedures or circumvented the regulations or related restrictions laid down by the State Bank of Pakistan from time to time.
(12) after section 26, the following new section shall be inserted , namely:-

“26A. Declaration of fidelity and secrecy.- (1) Every member, director, auditor and staff member of the microfinance bank shall, before entering upon his office and performance of duties, make a declaration of fidelity and secrecy in the form as the State Bank may prescribe.
(2) Whoever contravenes the declaration of fidelity and secrecy shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one hundred thousand rupees, or up to the extent of loss caused, whichever is higher, or with both.”; and
(13) in section 30, sub-section (2) shall be omitted.

19. Amendment of Ordinance XXII of 2002.- In the Public Procurement Regulatory Authority Ordinance, 2002 (XXII of 2002), the following amendments shall be made, namely:-
(1) after section 21, the following new section shall be inserted, namely:-

“ 21A. Ordinance not to apply to certain bodies corporate, etc.- (1) Notwithstanding anything contained in this Ordinance the provisions thereof shall not apply to a body corporate, company,
institution undertaking or establishment specified in the Schedule to this Ordinance, which has been privatized pursuant to the Privatization Commission Ordinance, 2000 (LII of 2000).
(2) The Federal Government may, by notification in the official Gazette, amend the Schedule so as to add any entry thereto, modify or omit any entry therein.”; and (2) after section 27, the following Schedule shall be added, namely:-

THE SCHEDULE
[See section 21A]
1. The Pakistan Telecommunication Company Limited.”.

20. Amendment in Federal Excise Act, 2005.– The following amendments shall be made in the Federal Excise Act, 2005, namely:- In the aforesaid Act,–
(1) in section (2),–
(a) after clause (8), the following new clause shall be inserted, namely:-
“(8a) “due date”, in relation to furnishing a return under section 4, means the 15th day of the month following the end of the month, or such other date as the Federal Government may, by notification in the official Gazette, specify.”;
(b) after clause (9), the following new clause shall be inserted, namely:-
“(9a) “duty due” means duty in respect of clearances made during a month and shall be paid on the last day of that month;”;
(2) in section 3, in sub-section (1), for the word “fifty”, the word “fifteen” shall be substituted;
(3) in section 4,–
(a) for sub-sections (1) and (2), the following shall be substituted, namely:-
“(1) At the close of a month every registered person, after payment of the amount of duty due from him for the month shall furnish not later than the due date a true and correct return in such manner and form as may be prescribed by the Board by notification in the official Gazette.
(2) Duty shall be deposited in the designated branch of the bank on the prescribed challan on the last day of the month during which clearances of goods are made:
Provided that the Board may, by notification in the official Gazette, prescribe any other manner of depositing the duty.”; and
(b) for sub-section (4), the following shall be substituted, namely:-
“(4) A registered person may, subject to approval of the Collector of Federal Excise having jurisdiction, file a revised return within ninety days of the filing of return under sub-section
(1), to correct any omission or wrong declaration made therein.”;
(4) in section 5, after sub-section (2), the following new sub-section shall be added, namely:-
“(3) Notwithstanding anything in sub-sections (1) and (2), the Board may, by notification in the official Gazette, prohibit the payment of drawback, refund or adjustment of duty upon the exportation of goods or any specified goods or class of goods to any specified foreign port
or territory.”;
(5) in section 12, in sub-section (5), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that, where the price, at which the goods or class of goods are sold, is higher than the price fixed by the Board, the duty shall, unless otherwise directed by the Board, be levied and collected at such higher price.”;
(6) in section 18, after sub-section (4), the following new sub-section shall be added, namely:-
“(5) The Board may, by notification in the official Gazette, specify the goods or services in respect of which sales invoice shall be issued electronically and prescribe the manner and procedure therein.”;
(7) in section 31, after sub-section (3), the following new sub-section shall be added, namely:-
“(4) Notwithstanding anything contained in sub-section (3) or any other provision of the Act or any other law for the time being in force and notwithstanding any decision or judgment of any forum, authority or court, the time for adjudication in all the cases pending as on 30thJune, 2006, shall be deemed always to have been extended upto 31st December, 2006, from the date on which the time limit prescribed under sub-section (3), expires.”;
(8) section 33 shall be numbered as sub-section (1) of that section, and thereafter the following new sub-sections shall be added, namely:-
“(2) The Collector (Appeals) may, after giving both parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, varying, altering, setting aside or annulling the decision or order appealed against.
(3) In deciding an appeal, the Collector (Appeals) may make such further inquiry as may be necessary provided that he shall not remand the case for de novo consideration.”;
(9) in section 34,–
(a) in sub-section (3), for the words “Deputy Collector”, the words and comma “Additional Collector, authorized by the Collector” shall be inserted;
(b) in sub-section (9), for the proviso, the following shall be substituted, namely:-
“Provided that, if the amount of duty is reduced as a result of judgment in the reference by the High Court, and any amount of duty is found refundable, the High Court may, on application, within thirty days of the receipt of such judgment, by an Additional Collector authorized by the Collector stating therein that he wants to prefer petition for leave to appeal to the Supreme Court, make an order authorizing the Collector to postpone the refund until the disposal of the appeal by the
Supreme Court.”;
(c) in sub-section (12), after the word “the”, the words “Additional Collector authorized by the” shall be inserted; and
(d) after sub-section (12), the following new sub-section shall be added, namely:-
“(13) Notwithstanding anything contained in any provision of this Act, where any reference or appeal was filed with the approval of Collector by the officer of lower rank than the Collector, and the reference or appeal is pending before an appellate forum or the Court, such reference or appeal shall always be deemed to have been so filed by the Collector.”;
(10) in section 38,–
(a) in marginal note, for the word “Alternate”, the word “Alternative” shall be substituted;
(b) in sub-section (1), after the word “excise” appearing for the first time the words and comma “pending before an Appellate authority or the High Court,” shall be inserted;
(c) for sub-section (2) the following shall be substituted, namely:-
“(2) The Board may, after examination of the application of a registered person, appoint a committee consisting of an officer of sales tax not below the rank of an Additional Collector and two persons from the notified panel comprising of retired Judge not below district and Sessions Judge, chartered or cost accountants, advocates, representatives of trade bodies or associations, or any other reputable taxpayers, for the resolution of dispute.”; and
(d) for sub-section (5), the following shall be substituted, namely:-
“(5) The registered person may make payment of duty and other taxes as determined by the Board in its order under subsection (4), and such order of the Board shall be submitted before the forum, tribunal or the Court where the matter is subjudice, for consideration and orders as deemed appropriate.”;
(11) in section 45, after sub-section (2), the following new sub-section shall be added, namely:-
“(3) The Board may, by notification in the official Gazette, for the purpose to monitor production or manufacture of any goods, specify the manner and procedure for appointment and posting of technical staff and installation, operation, maintenance of close circuit T.V system anywhere in the factory premises.”;
(12) in the First Schedule,–
(i) in Table-I, in column (1),–
(a) for serial numbers 9, 10 and 11 and the entries relating thereto in columns (2) and (3), the following shall be substituted, namely:-
“9 Locally produced cigarettes if their retail price exceeds fourteen rupees per ten cigarettes. 24.02 Sixty-three per cent of the retail price.
10 Locally produced cigarettes if their retail price exceeds six rupees and seventeen paisas per ten cigarettes but does not exceed fourteen rupees per ten cigarettes. 24.02 Two rupees and sixty- three paisas per ten cigarettes plus sixty-nine per cent incremental rupee or part thereof.
11 Locally produced cigarettes if their retail price does not exceed six rupees and seventeen paisas per ten cigarettes. 24.02 Two rupees and sixty- three paisas per ten cigarettes.”;
b) against serial numbers 22 and 23, in column (3), for the words “Seven rupees and fifteen paisa per litre”, the words “Ten per cent of the retail price”, shall be substituted;
(c) against serial number 25, in column (3), for the word “Five”, the word “Two” shall be substituted;
(d) for serial number 38 and the entries relating thereto in columns (2) and (3), the following shall be substituted, namely:- “38 Petroleum Bitumen (Bitumen and Asphalt) including bituminous mixtures.
27.13, 27.14 and 27.15 Two thousand rupees per metric tonne.”;
(ii) in Table-II, in column (1),–
(a) for serial number 3 and the entries relating thereto in columns (2) and (3), the following shall be substituted, namely:- “3 Facilities for travel 98.03
(a) Services provided or renderedin respect of travel by air of passenger within the territorial
jurisdiction of Pakistan.9803.1000 Fifteen per cent of the charges.
(b) Services provided or rendered in respect of travel by air of passenger embarking on international journey from Pakistan. 9803.1100 Fifteen per cent of the charges.”;
(b) for serial number 6 and the entries relating thereto in column (2), (3) and (4), the following shall be substituted, namely:- “6 Telecommunication services 98.12 (i) Telephone services 9812.1000 Fifteen per cent of the charges (ii) Fixed line voice telephone service 9812.1100 Fifteen per cent of the charges
(iii) Wireless telephone 9812.1200 Fifteen per cent of the charges
(iv) Cellular telephone 9812.1210 Fifteen per cent of the charges
(v) Wireless Local Loop telephone 9812.1220 Fifteen per cent of the charges
(vi) Video telephone 9812.1300 Fifteen per cent of the charges
(vii) Payphone cards 9812.1400 Fifteen per cent of the charges
(viii) Pre-paid calling cards 9812.1500 Fifteen per cent of the charges
(ix) Voice mail service 9812.1600 Fifteen per cent of the charges
(x) Messaging 9812.1700 Fifteen per cent of the service charges
(xi) Short Message service (SMS) 9812.1710 Fifteen per cent of the charges
(xii) Multimedia message service (MMS) 9812.1720 Fifteen per cent of the charges Bandwidth services- 9812.2000 Fifteen per cent of the charges
(a) Copper line based 9812.2100 Fifteen per cent of the charges
(b) Fibre-optic based 9812.2200 Fifteen per cent of the charges
(c) Co-axial cable based 9812.2300 Fifteen per cent of the charges
(d) Microwave based 9812.2400 Fifteen per cent of the charges (xiii)
(e) Satellite based 9812.2500 Fifteen per cent of the charges
(xiv) Telegraph 9812.3000 Fifteen per cent of the charges
(xv) Telex 9812.4000 Fifteen per cent of the charges
(xvi) Telefax 9812.5000 Fifteen per cent of the charges
(xvii) Store and forward 9812.5010 Fifteen per cent of the fax services charges
(xviii) Audiotext services 9812.9000 Fifteen per cent of the charges
(xix) Teletext services 9812.9100 Fifteen per cent of the charges
(xx) Trunk radio services 9812.9200 Fifteen per cent of the charges
(xxi) Paging services 9812.9300 Fifteen per cent of the charges
(xxii) Voice paging services 9812.9400 Fifteen per cent of the charges
(xxiii) Radio paging services 9812.9410 Fifteen per cent of the charges
(xxiv) Vehicle tracking services 9812.9490 Fifteen per cent of the charges
(xxv) Burglar alarm services 9812.9500 Fifteen per cent of the charges.”;
(c) for serial number 7 and the entries relating thereto in columns (2), (3) and (4), the following shall be substituted, namely:- “7 Services provided or rendered in respect of insurance to a policy holder by an insurer, including a re-insurer 9813.1000
(i) Goods insurance 9813.1100 Five per cent of the gross premium paid.
(ii) Fire insurance 9813.1200 Five per cent of the gross premium paid.
(iii) Theft insurance 9813.1300 Five per cent of the gross premium paid.
(iv) Marine insurance 9813.1400 Five per cent of the gross premium paid.
(v) Other insurance 9813.1500 Five per cent of the gross premium paid.”;
(d) for serial number 8 and the entries relating thereto in columns (2), (3) and (4), the following new serial numbers and the entries relating thereto in columns (2), (3) and (4) shall be substituted, namely:- “8 Service provided or rendered by banking companies in relation to: 9813.4000
Letter of credit 9813.4100 Five per cent of the charges. Guarantee 9813.4200 Five per cent of the charges. Brokerage 9813.4300 Five per cent of the charges. Issuance of pay order and demand drafts 9813.4400 Five per cent of the charges. Bill of exchange charges 9813.4500 Five per cent of the charges.
Transfer of money including telegraphic transfer, mail transfer and electronic transfer 9813.4600 Five per cent of the charges. Providing bank guarantees 9813.4700 Five per cent of the charges. Bill discounting commission 9813.4800 Five per cent of the charges. Safe deposit lockers fee 9813.4900 five per cent of the charges. Safe vaults 9813.4910 Five per cent of the charges. Credit and debit card issuance, processing and renewal 9813.5000 Five per cent of the charges.
Commission and brokerage on foreign exchange dealings 9813.6000 Five per cent of the charges.
9 Service provided or rendered by a foreign exchange broker including any authorized dealer of foreign exchange to a Customer 9813.9000 Five per cent of the charges.
10 Cable TV operators 9819.9000 Twenty-five rupees per connection.
11 Franchise services 9823.0000 Five per cent of the charges.”; and
(13) in the Third Schedule, in Table II, for serial number 2 in column (1) and the entries relating thereto in columns (2) and (3), the following shall be substituted, namely:-.

“S. No Description of Goods Heading/subheading number (1) (2) (3) 2
Telecommunication services:
(i) Internet services whether dialup or broadband including email services, Data Communication
Network services (DCNS) and Value added data services
(ii) Such charges payable on the international leased lines or bandwidth services used by—
Respective sub-headings of 98.12.”.
(a) software exporting firms registered with the Pakistan Software Exporting Board; and
(b) data and internet service providers licensed by the Pakistan Telecommunication Authority
(iii) Such amounts received by the Long Distance International license holders including Pakistan
Telecommunication Company Limited on International incoming calls under agreements with the
foreign telecommunication companies

21. Amendment of Act V of 1898:-In the Code of Criminal Procedure, 1898 (Act V of 1898), hereinafter referred to in said Code, the following further amendments shall be made, namely:-
(1) after section 14, the following new section shall be inserted, namely:-

“14A.- Appointment of Special Magistrates.- (1) Notwithstanding anything contained in this Code or any other law for the time being in force or any judgment of any court including superior courts, the Provincial Government may appoint Special Magistrates with the powers of a Magistrate First Class for the trial of offences relating to price control under any Provincial law or Federal law for the time being in force.
(2) The Provincial Government or any officer authorized by the Provincial Government in this behalf may, from time to time, define local areas within which such Magistrates may exercise all or any of
the powers with which they may respectively be invested under this Code or under any Provincial law or Federal law relating to price control.”;
(2) in section 17, after the figure “14” the comma, figure and letter “,14A” shall be inserted;
(3) in section 408, after the word “Magistrate” the comma and words “,Special Magistrate” shall be inserted.
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DECLARATION UNDER THE PROVISIONAL COLLECTION OF TAXES ACT, 1931(XVI OF 1931)
The provisions of sub-clause (46) of clause 8 and sub-clause (21) of clause 16 of this Bill shall have effect, for the purpose of this declaration and of the provisions of Provisional Collection of Taxes Act, 1931 (XVI of 1931) as if they were provisions for imposition of duties of customs and exemption of sales tax or withdrawal thereof respectively and it is hereby declared accordingly in terms of section 3 of the Act that it is expedient in the public interest that the provisions of the said clauses have effect on 6th June, 2006 under the Act, and for the purposes of above declaration the provisions of paragraph (i) of sub-clause (12) of clause 20 for increase or decrease of excise duty shall take immediate effect under that Act.

STATEMENT OF OBJECTS AND REASONS
The purpose of this Bill is to make financial provisions for the year beginning on the first day of July, 2006. Various provisions have been explained in the Notes on clauses.

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