Clause –9 (1)

(a)       Seeks to make an editorial correction;

(b)       Seeks to extend the benefit of amalgamation to industrial undertakings;

(c)        Seeks to define “Approved Annuity Plan”, “Approved Income Payment Plan” and “Approved Pension Fund”;

(d)       Seeks to define “Contribution to an Approved Pension Fund”;

(e)       Seeks to define “Eligible Person”;

(f)         Seeks to amend the definition of “Financial Institution”;

(g)       Seeks to amend the definition of the term “income” by including certain categories previously not mentioned;

(h)        Seeks to define “Individual Pension Account”;

(i)         Seeks to define “Industrial Undertaking”;

(j)         Seeks to define “Pension Fund Manager”;

(k)        Seeks to modify the definition of “public company” to include such companies where foreign Government holding is not less than 50% of the shares;

(l)         Seeks to make an editorial correction;

(m)      Seeks to define the term “Small Company”;

(n)        Seeks to make an editorial correction.

Clause-9 (2)

Seeks to make an editorial correction.

 Clause-9 (3)

Seeks to make editorial corrections.

Clause-9 (4)

Seeks to include “Approved Pension Fund” along with other existing funds.

Clause-9 (5)

Seeks to omit the upper limit for cost for claiming depreciation on a vehicle not plying for hire.

Clause-9 (6)

Seeks to make an editorial correction

Clause-9 (7)

(a)       Seeks to provide two-way set-off of losses in the case of amalgamation of companies;

(b)       Seeks to impose the condition of continuation of business of the amalgamating company for a minimum period of five years in order to avail set-off of losses;

(c)        Seeks to recover loss of revenue in case conditions laid down for amalgamation are found not to have been fulfilled.

Clause-9 (8)

Seeks to extend “Group Relief” to the service sector also which is so far available only to industrial undertakings.

Clause-9 (9)

Seeks to make an editorial correction

Clause-9 (10)

Seeks to enhance the limit of exemption on investment from Rs.100,000 to Rs. 150,000 in the case of investment in new shares.

Clause-9 (11)

Seeks to provide a formula for entitlement to tax credit in respect of any contribution in an Approved Pension Fund.

Clause-9 (12)

Seeks to include “small company“ in the definition of a company.

Clause-9 (13)

Seeks to make an editorial correction.

Clause-9 (14)

Seeks to make an editorial correction.

Clause-9 (15)

Seeks to gives effect to new excise law.

Clause-9 (16)

Seeks to levy final tax @ 1% of turnover on retail sales of textile fabrics and article of apparel, including readymade garments or fashion wear, articles of leather including footwear, carpets and sports goods by an individual or an AOP, if the turnover exceeds Rs. 5 million for any tax year.

Clause-9 (17)

(a)           Seeks to relax the condition for mandatory filing of return by omitting reference to telephone subscribers, owners of motor cars, members of clubs and persons who undertake foreign travel;

(b)           Seeks to make an editorial correction;

(c)            Seeks to enable e-filing of return;

(d)           Seeks to make an editorial correction.

Clause-9 (18)

(a)      Seeks to absolve a salaried taxpayer from the obligation of filing of return if his employer has filed the Annual Statement of Deduction of Income Tax from Salary;

(b)      Seeks to provide for filing of an annual statement by retailers of textile made- up, leather articles, carpets, sports goods and surgical goods.

Clause-9 (19)

Seeks to provide for selection of a case for audit, after deemed assessment under Universal Self Assessment Scheme.

Clause-9 (20)

Seeks to make an editorial correction.

Clause-9 (21)

Seeks to provide that no limitation would be applicable for completing a re-assessment if the original assessment order has been set-aside by an Appellate Authority.

Clause-9 (22)

Seeks to divest the Commissioner (Appeals) of the power to set-aside an assessment.

Clause-9 (23)

Seeks to provide for a direct reference to High Court instead of taking the route through the Appellate Tribunal.

Clause-9 (24)

Seeks to omit the superfluous provision regarding Appeal to the Supreme Court.

Clause-9 (25)

(a)       Seeks to provide for constitution of a panel rather than notification of panel for the purpose of Alternate Dispute Resolution;

(b)       Seeks to clarify that the taxpayer who is aggrieved with the order of the Central Board of Revenue with regard to “Alternate Dispute Resolution” may continue to pursue his remedy before the Appellate Forum;

(c)        Seeks to omit a provision which conveyed an incorrect impression vis-a-viz a person’s right to pursue remedy in appeal even if he is in ADR.

Clause-9 (26)

(a)      Seeks to make an editorial correction;

(b)      Seeks to provide a formula for computation of advance tax by an association of persons;

(c)      Seeks to make an editorial correction.

Clause-9 (27)

Seeks to omit the definition of “Industrial undertaking”.

Clause-9 (28)

(a)       Seeks to define the scope of the term “services”;

(b)       Seeks to omit separate treatment for “turnkey contracts” and “power projects” from the presumptive tax regime;

(c)        Seeks to absolve a “small company” from the obligation to withhold tax;

(d)       Seeks to make an editorial correction;

(e)       Seeks to omit the manufactures/suppliers of goods from the purview of presumptive tax regime.

Clause-9 (29)

Seeks to provide for deduction of tax at the time of withdrawal of balance under Pension Fund.

Clause-9 (30)

Seeks to make an editorial correction.

Clause-9 (31)

(a)         Seeks to clarify the provision for obtaining information from the taxpayer;

(b)         Seeks to enable a person from whom information has been called for, to furnish the required information electronically.

Clause-9 (32)

Seeks to make editorial corrections.

Clause-9 (33)

Seeks to give consequential effect to new Excise Law

Clause-9 (34)

Seeks to amend the marginal note by substituting the word “certificate” for “card” (National Tax Number Certificate).

Clause-9 (35)

Seeks to amend the marginal note by substituting the word “certificate” for “card” (National Tax Number Certificate).

Clause-9 (36)

Seeks to make an editorial correction.

Clause-9 (37)

(a)       Seeks to make editorial change;

(b)       Seeks to replace reference to old Central Excise Act, by the new one.

Clause-9 (38)

Seeks to provide for reorganization of The Directorate General of Inspection and Internal Audit.

Clause-9 (39)

Seeks to omit certain provision of law relating to Jurisdiction and functions of the Directorate General of Inspection

Clause-9 (40)

Seeks to provide for charge of the adjustable withholding tax on cash withdrawal from a bank exceeding Rs.25,000.

Clause-9 (41)

Seeks to restructure the existing legal provision in respect of withholding tax on brokerage and commission in order to make it simple to understand.

Clause-9 (42)

Seeks to make editorial corrections.

Clause-9 (43)

Seeks to make an editorial correction.

Clause-9 (44)

(a)         Seeks to make editorial corrections;

(b)         Seeks to make an editorial correction;

(c)         Seeks to provide powers to amend any notification issued under section 50 of the repealed Ordinance;

(d)         Seeks to make an editorial correction.

Clause-9 (45)

(i)          (a)       Seeks to clarify that the existing rate card for personal tax rates shall henceforth apply only to non-salaried individual and AOPs;

          (b)          Seeks to provide for a new rate card for Salaried individual with rates ranging from 3.5% to 30%

          (c)           Seeks to provide for a tax rate of 20% in the case of Small Companies;

(ii)         (a)      Seeks to omit “cotton” for the purpose of application of reduced withholding tax rate on sale of certain items;

         (b)      Seeks to provide for a uniform withholding tax rate of 6% on payments for execution of contracts in the case of a resident person or permanent establishment in Pakistan of a non-resident person;

(c)               Seeks to provide for a uniform withholding tax rate of 6% in the case of non-residents on execution of contracts including a contract for advertisement services rendered by TV Satellite Channels.

(iii)        (a)      Seeks to simplify the existing provision for withholding tax rate of 5% in the case of indenting commission agents, advertising agents and yarn dealers and 10% in other cases of brokerage and commission;

             (b)      Seeks to provide new withholding tax rate for telephone users, which shall be 10% of the sale price of pre-paid telephone cards or the monthly post paid bill. However in the case of post paid bills, an exemption on monthly bill upto Rs.1000 would be available;

(c)   Seeks to provide 0.1% withholding tax rate on cash withdrawal and also seeks to provide for withholding tax rate of 6% on purchase of motor cars.

Clause-9 (46)

(i)       (a)         Seeks to provide an exemption of perquisites in the hands of employees which carry zero marginal cost to the employers such as transporters including airlines, hospitals, educational institutions and hotels;

(b)               Seeks to make an editorial correction.

(c)               Seeks to provide exemption from income tax to an Approved Pension Fund and profit an gain derived by a Pension Fund Manager on redemption of the seed capital;

(d)               Seeks to omit certain redundant clauses and also provide for a straight deduction from income for donations to specified institutions;

(e)               Seeks to provide for exemption to HUBCO on profit on debt on its bank deposits or accounts with financial institutions;

(f)                 Seeks to update the nomenclature of certain rules;

(g)               Seeks to update the nomenclature of certain rules;

(h)               Seeks to provide exemption to corporatized entities of Pakistan Water and Power Development Authority (WAPDA) from the date of creation to date of completion of the process of corporatization;

(i)                 Seeks to make an editorial correction by omitting an erroneous reference and substituting it with the correct one;

(j)                  Seeks to make an editorial correction;

(k)               Seeks to provide exemption to the income of a member of a stock exchange on corporatization;

(l)                  Seeks to exempt income of Fugro Geodetic Limited on execution of contract with Government of Pakistan for survey for the establishment of the Continental Shelf of Pakistan.

(ii)        (a)       Seeks to omit a redundant clause;

(b)            Seeks to extend the reduced withholding tax rate of 1% to services rendered outside Pakistan;

(c)             Seeks to make editorial changes;

(d)            Seeks to omit a redundant clause;

(e)            Seeks to reduce advance tax on import of certain fibers, yarns and fabrics to 1%;

(f)               Seeks to reduce the advance tax rate to 1% in the case of condemned ships imported for breaking purposes

(g)            Seeks to provide for a1% reduction in tax rate for new enlistments on stock exchanges.

(iii)        (a)      Seeks to omit the reduction in tax liability in the case of salaried taxpayers;

             (b)      Seeks to enhance the exemption limit from Rs.300,000 to Rs.400,000 for senior citizens;

(c)        Seeks to enhance the reduction from 50% to 75% in the case of teachers/researchers

(iv)        (a)      Seeks to re-arrange Part IV of the Second Schedule by grouping exemption from taxation of “unexplained income or assets” in certain cases under one clause;

             (b)      Seeks to omit certain clauses which have been re-arranged as above;

             (c)      Seeks to re-arrange certain exemptions from “payment of minimum tax” by grouping them under one clause;

(d)         Seeks to omit clauses which have been grouped under one clause referred above;

(e)         Seeks to withdraw the option for PTR available to manufacturers with retrospective effect:

(f)           Seeks to omit a clause which have been grouped with other similar clauses under a single clause;

(g)         Seeks to extend exemption from withholding tax under sections 150, 151 and 233 to an Approved Pension Fund or an Approved Income Payment Plan;

(h)         Seeks to omit two clauses which have been grouped with other similar clauses under a single clause;

(i)           Seeks to group various clauses which provide for exemption from withholding tax at import stage under one clause;

(j)            Seeks to provide exemption from withholding tax on supplies and at import stage to companies operating trading houses which fulfill certain conditions;

(k)         Seeks to provide for exemption from additional tax to defaulting telecom companies;

(l)            Seeks to group clauses providing exemption from withholding tax on profit on debt under one single clause.

Clause-9 (47)

Seeks to restructure the depreciation rate schedule.

Clause-9 (48)

Seeks to exempt capital gains derived by insurance companies from sale of shares etc.

Clause-9 (49)

Seeks to make an editorial correction.

Clause-9 (50)

Seeks to restructure different categories of exports for the purpose of application of different reduced withholding tax rates.

(b) Seeks to make an editorial adjustment;

(c) Seeks to provide for the facility of Alternate Dispute Resolution in wealth tax cases.