ISLAMABAD: The government on Wednesday implemented a mini budget through a presidential ordinance making amendments to all duty and tax statutes.
The amendments to tax laws namely ‘Tax Laws (Second Amendment) Ordinance, 2019’ have been promulgated through the presidential order.
The consultants at Tax Excellence called it mini-budget and highlighted major changes made to Income Tax Ordinance, 2001, Sales Tax Act, 1990, Customs Act, 1969 and Federal Excise Act, 2005.
Now, the Tax Laws (Second) Amendment Ordinance, 2019 has been promulgated on December 26, 2019, which will remain valid for four months, unless extended or approved by the National Assembly.
The ordinance contains several amendments following Sections:
Sales Tax Act, 1990
Section 2(12A): Greenfield Industry
Section 2(43A): Tier-1 Retailer
Section 33: Offences and penalties
Section 40D: Provisions relating to goods supplied from tax-exempt areas
Section 73: Certain transactions not admissible
Section 76: Fee and service charges
Sixth Schedule: Table-1 (Imports or Supplies) [Exempt Supplies]
Eighth Schedule: Table-1 [Reduced Rate]
Ninth Schedule: Special provisions relating to traders [major change for traders]
Tenth Schedule: Rule for persons not appearing in Active Taxpayers list
12TH Schedule: Value-Addition Tax [major procedural changes]
Income Tax Ordinance, 2001
Section 2(27A): greenfield industrial undertaking [definition inserted-major impact & applicable from 1.7.19]
Section 130: Appellate Tribunal [major change]
Section 152: Payments to non-residents [major change]
Section 181D: Business licence scheme. [major change]
Section 214E: Closure of audit. [major change]
Section 216: Disclosure of information by a public servant
Section 222A: Fee and service charges
Section 230E: Directorate General of International Tax Operations [major change]
First Schedule: Part-I, II & III [major changes]
Second Schedule: Part-I, II, III & IV [major changes]
10TH Schedule: Rule 10 Clause (ba) inserted
Federal Excise Act, 2005
Section 49: Fee and service charges
Customs Act, 1969
Section 3CCA: Directorate General of Law and Prosecution” [newly inserted]
Section 6: Entrustment of functions of customs officers to certain other officers
Section 7: Assistance to the officers of customs.
Section 139: Declaration by passenger or crew of baggage
Section 156: Punishment for offences [major changes]
Section 164: Power to stop and search conveyances.
Section 169: Things seized how dealt with
Section 185A: Cognizance of offences by Special Judges
Section 194: Appellate Tribunal [section substituted]
Section 196: Reference to High Court