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Tag: FBR

FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.

  • Threshold amount to purchase immovable properties removed for withholding tax collection: FBR

    Threshold amount to purchase immovable properties removed for withholding tax collection: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has removed threshold amount to purchase of immovable properties for collection of withholding tax.

    The FBR issued Income Tax Circular No. 09 dated July 30, 2019 and said that through the Finance Act, 2019, the rate of tax on purchase of immovable property under Section 236K of Income Tax Ordinance, 2001 has been reduced to 1 percent from 2 percent.

    Prior to the Finance Act, 2019, no tax was collected under Section 236K on purchase of property where the value of property up to Rs4 million.

    “Through the Finance Act, 2019, the threshold of Rs4 million for collection of tax has been removed. Now tax on purchase of property will be collected on all transactions irrespective of the value of immovable property,” the FBR said.

    The FBR said that tax under section 236C is collected from the seller or transfer at the rate of one percent of the gross amount of consideration received.

    Prior to the Finance Act 2019, this tax was not collected if the property was held for a period exceeding three years.

    Through the Finance Act, 2019, the period of three years has been extended to five years which means that tax under section 236C shall be collected if the immovable property is held for a period up to five years.

    The FBR further explained that as per section 236W read with clause (c) of sub-section (4) of Section 111, every person responsible for registering, recording or attesting transfer of any immovable property was required to collect tax at the rate of 3 percent of the difference between the FBR value of property and the value recorded by the authority registering or attesting the transfer in cases where FBR value was greater than the recorded value.

    So by paying three percent on the difference, the purchaser was not required to explain the source of difference of amount between FBR value and the recorded value.

    Through Finance Act, 2019, section 236W as well as clause (c) of sub-section (4) of Section 111 have been omitted. Consequently, the purchasers are not required to explain the source of investment of property up to the FBR value of property whereas previously such purchasers were required to explain the source of investment to the extent of recorded value of property.

  • FBR streamlines anti-benami regime to stop white collar crimes

    FBR streamlines anti-benami regime to stop white collar crimes

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued official note to streamline Anti-Benami Regime to stop white collar crimes.

    The FBR said that Benami Transactions, entailing the phenomenon of Benami moveable and immoveable properties, Bank A/Cs, Luxury Vehicles, off shore investments and stocks & shares is one of the biggest economic and financial threats, currently camouflaging the rampant corruption in our society, deadly confronting Pakistan’s taxation system and practically compromising the economic viability of the country.

    Due to non existence of a special Law and Rules on Benami all Anti-corruption agencies have so far failed in tracing and documenting the real/beneficial owners and criminals went scot free.

    In order to combat the menace of Benami and take the spirit of accountability forward Federal Government has operationalized Benami Transaction (Prohibition), Act, 2017, which was dormant since February, 2017.

    Federal Board of Revenue has been assigned the administration and implementation of this new stream of Financial Crime Investigation & Enforcement.

    This office order is aimed at streamlining of newly introduced Anti-Benami Regime in Pakistan.

    I. Organizational Framework: Anti Benami Regime Pakistan.

    FBR, as the parent/administering department envisages two distinct streams of functions for this White Collar Crime Investigation Agency: independent Authorities and supporting Administrative Oversight.

    Both streams shall co-exist, though mutually exclusive yet complementing each other. For the legal functions, to be conducted by different Anti-Benami Authorities, their operational independence is fully protected under Benami Transaction (Prohibition) Act, 2017.

    However FBR’s administrative facilitation, financial support and organizational oversight are essential for sustainable field operations, development and strengthening of this newly launched regime.

    AuthoritiesCore FunctionsSupport Functions
    Initiating Officer (BS-18)-Initiation of Anti-Benami Proceedings

     

    -Attachment of Benami Properties -Inquiries and Investigations

    -Filing of Reference to Adjudication Authority.

    -Filing of Appeals

    -Enforcement of various provisions of said Act.

    		-Examination and Analysis of

     

    complaints and references by

    different agencies

    – Development of Research &

    Analysis Cells

    -Data Archiving

    -Services of Notices

    -Litigation Management

    Approving Authority (BS-20)-Highest Legal Authority at Anti-Benami Field formations

     

    -Supervisory/Administrative authority at Benami Zones

    -Granting approval of all major legal and Enforcement functions

    -Inherent powers u/s 16

    -Confiscation of benami properties

    		-Administrative and Financial head of Anti-Benami Zone

     

    -Focal office for all correspondence with FBR and other Anti-Benami authorities

    -Addressing genuine grievances and complaints

    -Performance Management and Reporting

    -Reposing officer in the cases of Initiating officers and Administrators

    -Linkages with FBR portal and other economic & financial data bases

    Administrator (BS-17)-Management of Attached properties -Management of Confiscated properties

     

    -Possession of benami properties

    -Confiscation of benami properties

    -Disposal of Confiscated properties

    -Ware Housing in the cases of attached/confiscated movable properties

    		-Intelligence & Vigilance function of benami Zones

     

    -Spear heading all enforcement activities

    -Maintenance of Discipline and motivation in field workforce

    Adjudicating Authorities (BS-21/22)-Adjudication of References filed by Initiating Officers

     

    -Inquiries and investigation

    -Attachment powers

    -Statutory powers to add or delete any person arrayed as accused or property labeled as benami

    – Passing Confiscation Order

    -Constitution of Adjudication benches

    -Administration of Officers and

    Employees of Adjudication Authority

    -Advice to the Federal Government

    on Adjudication related matters

    		-Development of Case Studies

     

    -Critical References filed by Benami Zones

    -Administration of justice

    -Periodical Review of Law, Rules and patterns of crime

    A. Authorities: Benami Transaction (Prohibition) Act, 2017 provides detailed description and powers & functions of various authorities. FBR has already notified the jurisdiction and appointment of field authorities at Islamabad, Lahore and Karachi.

    In addition to their statutory functions, FBR deems it necessary to assigns field Benami authorities some support functions as well.

    These support functions would help in realizing the desired results of this legislation and seamless implementation of this new regime.

    B. Administrative Oversight: Director General-Anti Benami Initiative (DG- ABI)

    In order to facilitate the Authorities and to ensure efficient and effective implementation of Anti-Benami law the office of DG-ABI is being raised to ensure smooth and effective implementation and enforcement of Anti-Benami Act, 2017. Without any interference in their respective legal domains, this administrative structure would provide the following support to Anti-Benami Zones.

    i) DG-ABI would act as FBR’s focal office for proper implementation of Benami Transaction (Prohibition) Act, 2017. DG-ABI would act as a bridge between Anti-Benami Zones and FBR, between Zones and Adjudication Authorities and among all the Anti-Benami Zones as well.

    ii) Establishment of Administrative hierarchy for the newly created Anti-benami Zones at Islamabad, Lahore and Karachi.

    iii) Logistic Support, Financial Back up & autonomy and capacity building for Anti-Benami Zones.

    iv) Development of uniform operational SOPs for transparent functioning of field authorities.

    v) Contact point for all external agencies interacting with FBR in Benami related matters. Receipt, analysis and dissemination of benami related complaints, data, information and reference from all external Quarters.

    vi) Development of linkages between Anti-benami authorities and FBR’s portal and external Data Bases. Central Data Bank on Benami.

    vii) Quantitative Performance Evaluation of Anti-Benami Zones.

    Qualitative Evaluation shall be made only after obtaining input from the concerned Adjudication Authority.

    viii) Addressing all jurisdiction related issues in the light of FBR’s relevant notifications.

    ix) Recommendations for review and amendments in Law, Rules and Procedure, covering Anti-Benami Regime

    x) Personnel Management and Litigation

    II. Directorate General-ABI: The Organizational structure

    i) Directorate General-ABI would comprise a Director General, Director HQs and three Commissioners, Anti Benami Zones at Islamabad, Lahore and Karachi, responsible for their notified jurisdictions.

    ii) Directorate General-ABI and its formations would be manned by officers of IRS and staffed by IR Department

    III. Reporting Mechanism
    i) Administrators and Initiating Officers shall report to their respective Commissioners, Anti-Benami Zones.

    ii) Commissioners, Anti Benami Zones would be independent in their Legal jurisdictions. For all administrative matters they will be reporting to DG-ABI Islamabad.

    iii) DG-ABI would report to the National Coordinator for implementation of Benami Transactions (Prohibition) Act, 2017.

  • FBR extends date for filing withholding statements to August 20

    FBR extends date for filing withholding statements to August 20

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday extended the date for filing withholding statements by 20 days to August 20, 2019 from July 31, 2019.

    In this regard the FBR issued Income Tax Circular No. 10 to allow extension for filing withholding statements under Section 165 of Income Tax Ordinance, 2001.

  • FBR promotes 30 appraising officers of customs department

    FBR promotes 30 appraising officers of customs department

    ISLAMABAD: Federal Board of Revenue (FBR) has promoted 30 appraising officers to the post of principal appraisers (BS-16) with immediate effect and until further orders, a notification said on Wednesday.

    According to notification made available to PkRevenue.com, the following Appraising Officer of Pakistan Customs Department are promoted to the post of Principal Appraiser (BS-16)with immediate effect and until further orders:

    Following officers have been promoted to the post of principal officers:

    01. Junaid Malik, MCC, Appraisement (East), Karachi

    02. Shahrukh Akhlaq Siddiquie, MCC, Appraisement (East), Karach

    03. MuhammadNazir Khan, MCC, Gilgit-Baltistan

    04. Syed Masoom Raza, MCC, (JIAP), Karachi

    05. MuhammadNadeem Butt, MCC, Appraisement (West), Karachi

    06. Ghulam Yasin Sabri, MCC, PMBQ, Karachi

    07. Altaf Ali Chandio, MCC, Preventive, Karachi

    08. Ashique Ali Memon, MCC, Appraisement (East), Karachi

    09. Mohammad Yaqoob, MCC, Appraisement (West), Karachi

    10. Vaqas Jilani, MCC, Preventive, Lahore

    11. Malik Naveed Anwar, Dte. of Post Clearance Audit, Lahore

    12. Adnan Khurshid Cheema, MCC, Appraisement (East), Karachi

    13. Azeem Manzoor, MCC, Islamabad (He will actualize promotion on return from Ex-Pakistan leave).

    14. Saifuddin Khan, MCC, Appraisement, Lahore

    15. Muhammad Iftikhar Hussain, MCC, Appraisement (East), Karachi

    16. Tariq Aziz S/o Abdul Aziz, MCC, Appraisement (West), Karachi

    17. Ms. Nudrat Nawaz, Dte.Gen. of PCA, Islamabad

    18. Amir Nasir Ali Khan, MCC, Appraisement (East), Karachi

    19. Sarfraz Bangulzai, MCC, Appraisement (East), Karachi

    20. Amjad Iqbal, MCC, Appraisement (West), Karachi

    21. Raja Waseem Ahmad, MCC, PMBQ, Karachi

    22. Zafar Shabbir, MCC, Appraisement (East), Karachi

    23. Imtiaz Hussain Khan, Dte. Gen of Valuation, Karachi

    24. Farooq Ahmad, MCC, Appraisement (West), Karachi

    25. Abdul Hameed, MCC, (Preventive), Lahore

    26. Muhammad Afzal, MCC, (Preventive), Lahore

    27. Tabasum Shahzad, Dte. of Post Clearance Audit, Lahore

    28. Muhammad Ejaz Cheema,Dte. of Intelligence & Investigation (Customs), Lahore

    29. Muhammad Yousaf Ansari, MCC, Appraisement, Lahore

    30. Ghulam Nabi Zafar, Dte. of Internal Audit(Customs), Lahore

    The FBR said that their promotion will take effect from the date of their joining, subject to the condition that no disciplinary proceedings/enquiry is pending against them.

    The officers will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deem to be held until further order

    The officers already drawing Performance Allowance equal to 100 percent of basic pay will continue to draw it on their promotion.

  • Persons not appearing in ATL will pay 100 percent increased withholding tax rate: FBR

    Persons not appearing in ATL will pay 100 percent increased withholding tax rate: FBR

    KARACHI: Persons whose names are not appearing in the Active Taxpayers List (ATL) will be subjected to hundred percent increased rate of withholding tax, Federal Board of Revenue (FBR) said in a circular issued to explain changes made in Income Tax Ordinance, 2001 through Finance Act, 2019.

    The FBR issued Circular No. 19 of 2019 and said that prior to Finance Act, 2019 a concept of non-filer existed in the Ordinance whereby higher tax rates of withholding were prescribed for persons who were non-filers.

    Such non-filers could claim adjustment of the higher tax collected at the time of filing of income tax returns. The aim was to compel the non-filers to file their returns of income. “However, it was observed that the non-filers, even though subjected to higher withholding rates, still had a propensity not to file their returns,” the FBR said.

    This proved detrimental to exercise of expansion or tax base. This was due to the absence of an explicit provision specifying a standard procedure for action against such persons.

    Through Finance Act, 2019 the concept of non-filers has been done away with and a new concept regarding persons not appearing in the active taxpayers list has been introduced. This concept is a m ore paradigm shift from the erstwhile non-filer higher tax regime in that it not only penalizes those persons not appearing in the ATL but also introduces an effective mechanism for enforcing returns from such persons.

    In this regard a new section 100BA to Income Tax Ordinance, 2001 has been introduced which provides that collection or deduction of advance income tax, computation of income and tax payable thereon shall be determined in accordance with the rules in the newly introduced ‘The Tenth Schedule’ which envisages the entire path to be adopted by the Inland Revenue Department to enforce returns from persons who make financial transactions yet choose not to file their returns of income.

    The FBR said that the persons whose names are not appearing in the ATL will be subjected to 100 percent increased tax rate.

    The FBR further said that where a withholding agent is of the opinion that 100 percent increased tax is not required to be collected on the basis that the person was not required to file return, the withholding agent shall furnish a notice to the commissioner having jurisdiction over withholding agent setting out –

    a. The name, CNIC or NTN and address of the person not appearing in the ATL

    b. The nature and amount of the transaction on which tax is required to be collected or deducted; and

    c. Reason on the basis of which it is considered that the person was not required to file return or statement, as the case may be.

  • Unexplained foreign remittances will be subject to tax: FBR

    Unexplained foreign remittances will be subject to tax: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said that unexplained foreign remittances will be subject to income tax.

    (more…)
  • FBR sets 200pc penalty for offshore tax evasion

    FBR sets 200pc penalty for offshore tax evasion

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said the amended income tax law attract 200 percent penalty amount of tax evaded in cases of undeclared offshore assets.

    The FBR issued income tax circular to explain the changes brought through Finance Act, 2019 regarding offshore assets and tax evasion.

    The FBR said that through the Finance Act, 2019, the term “offshore Assets” has been defined by inserting a new clause (38AA) in section 2 of Income Tax Ordinance, 2001, which includes any movable or immovable assets held, any again, profit or income derived, or any expenditure incurred outside Pakistan.

    The term “offshore evader” has been defined by inserting a new clause (38AB) in section 2 and it means a person who owns, possesses, control, or is the beneficial owner of an offshore assets and dos not declare, or under declares or provides inaccurate particulars of such assets to the Commissioners.

    Penalty has also been provided in serial No. 22 in sub section (1) of section 182 that where an offshore tax evader is involved in offshore tax evasion in the course of any proceedings under this Ordinance before any Income Tax authority or the appellate tribunal, such person shall pay a penalty of Rs100,000 or an amount equal to 200 percent of the tax sought to be evaded, whichever is higher.

    Prosecution for concealment of an offshore assets has been provided by inserting a new section 192B according to which any person who fails to declare an offshore assets to the Commissioner or furnishes inaccurate particulars of an offshore assets and the revenue impact of such concealment or furnishing of inaccurate particulars is ten million rupees or more shall commit an offence punishable on conviction with imprisonment up to three years or with a fine up to Rs. 500,000, or both.

    A new sub-section (5) has been added in section 145 as per which the Commissioner may freeze any domestic assets of a person where on the basis of information received from an offshore jurisdiction, the Commissioner has reason to believe the such person who is likely to leave Pakistan may be involved in offshore tax evasion or such person is about to dispose of any assets.

    The Commissioner may freeze any domestic assets of the person including any assets beneficially owned by such person for a period of 120 days or till the finalization of proceedings including recovery proceedings and any other proceeding under the Ordinance, whichever is earlier.

    The term “offshore enabler” has been defined by inserting a new clause (38AC) in section 2 to include any person who enables, assist, or advises any person to plan, design, arrange or manage a transaction or declaration relating to an offshore assets, which has resulted or may result in tax evasion.

    Penalty has been provided in serial no.23 of sub-section (1) of section 182 that where in the course of any transaction or declaration made by a person an enabler has enabled, guided, advised or managed any person to design, arrange or manage that transaction or declaration in such a manner which has resulted or may result in offshore tax evasion in the course of any proceedings under the Ordinance, such person shall pay a penalty of Rs 300,000 or an amount equal to 200 percent of the tax which was sought to be evaded, whichever is higher.

    Prosecution for enabling offshore tax evasion has been provided by inserting a new section 195B to the effect that any enabler who enables, guides or advises any person to design, arrange or manage a transaction or declaration in such a manner which results in offshore tax evasion, shall commit an offence punishable on conviction with imprisonment for a term not exceeding seven years or with a fine up to five million rupees or both.

    The term “asset move “has been defined by inserting a new clause(5C) in section 2 and it means the transfer of non offshore assets to an unspecified jurisdiction by or an behalf of a person who owns, possesses, controls or is the beneficial owner of such offshore asset for the purpose of tax evasion.

    An unspecified jurisdiction means a jurisdiction which has not committed to automatically exchange information under the Common Reporting Standard with Pakistan. The term “specified jurisdiction “has been defined by inserting a new clause (60A) in section 2 and it means any jurisdiction which has committed to automatically exchange information under Common Reporting Standard with Pakistan.

    Penalty has also been provided in serial 24 of sub-section (1) of section 182 that any person who is involved in asset move from specified to un-specified territory shall pay a penalty of Rs. 100,000 or an amount equal to 100 percent of the tax, whichever is higher.

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    FBR makes mandatory purchase of immovable property through banking channel

  • FBR makes mandatory purchase of immovable property through banking channel

    FBR makes mandatory purchase of immovable property through banking channel

    ISLAMABAD: Federal Board of Revenue (FBR) has made mandatory the purchase of immovable property of fair market value above Rs5 million through banking channel.

    The FBR issued explanation to the Finance Act, 2019 on Tuesday regarding purchase of assets through banking channel under Section 75A of Income Tax Ordinance, 2001.

    The FBR said that a new section 75A has been introduced in the Ordinance which requires that no person shall purchase immovable property having fair market value greater than Rs.5,000,000 or any other asset having fair market value more than Rs.1,000,000 otherwise than by a crossed cheque drawn on a bank or through crossed demand draft or crossed pay order or any other crossed banking instrument showing transfer of amount from one bank account to another bank account.

    Fair market value of immovable property shall be the value notified by the Board under sub-section (4) of section 68 or the value fixed by provincial authority for the purpose of stamp duty, whichever is higher.

    In case the transaction is not through banking channel as specified above,-

    (a) such person cannot claim deductions mentioned in sections 22,23,24 & 25 on such assets. Hence, no deduction for depreciation, initial allowance, intangibles and pre-commencement expenditure shall be allowable for assets purchased otherwise than through banking channel as specified above;

    (b) the amount of purchased through cash which was required to paid through banking channel as stated above, shall not be treated as cost as per section 76 for computation of any gain in sale of such asset.
    Further, any person purchasing immovable property having fair market value greater than five million through cash or bearer cheque shall pay a penalty of 5% of the value of property determined by the Board under sub-section (4) of section 68 or the value determined by the provincial authority for the purposes of stamp duty, whichever is higher.

    The above provisions of law are illustrated through the following examples.

    Example 1

    Mr A is deriving income from business and has declared taxable income as under.

    Sale: 100,000,000.

    Cost of sales: 70,000,000.

    Breakup of cost of sale

    Initial depreciation on machinery: 10,000,000.

    Normal depreciation of machinery: 6,000,000.

    Salaries: 40,000,000.

    Fuel and utilities: 14,000,000.

    Gross profit: 30,000,000.

    Admin & distribution expenses: 10,000,000

    Taxable income: 20,000,000

    Mr. A had bought machinery of Rs40 million for the year through cash. As per section 75A, business deduction under section 22 & 23 pertaining to initial depreciation of Rs10,000,000 and normal depreciation of Rs6,000,000 shall not be admissible. Hence, Rs16,000,000 will be added in taxable income resulting in taxable income of Rs36,000,000.

    Mr. A subsequently sells the machinery after three years at Rs12,000,000. For the purpose of computing gain, the cost of the asset has to be deducted from the sale price but in this case, the machinery was purchased through cash, hence, the cash amount cannot be treated as cost. Resultantly, Rs12,000,000 will be treated as gain chargeable to tax under the head “income from business”.

    Example 2.

    Mr. B derives income from salary only. He has purchased immovable property through cash and the FBR value of the property is Rs8,000,000 but the DC value of property for the purpose of stamp duty is Rs6,000,000. As per serial No. 21 of section 182, penalty at 5 percent of FBR value of property of DC value, whichever is higher, is to be imposed. In this case, the FBR value of property is greater than DC value, hence penalty shall be imposed at 5 percent of Rs8,000,000 at Rs400,000.

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  • Draft MoU for sharing taxation data sent to China

    Draft MoU for sharing taxation data sent to China

    ISLAMABAD: Pakistan has sent draft Memorandum of Understanding (MoU) to China for sharing taxation data between the two countries.

    Federal Board of Revenue (FBR) Chairman Syed Muhammad Shabbar Zaidi on Monday sent the draft Memorandum of Understanding (MoU) on cooperation between FBR and China’s State Administration of Taxation in order to share taxation data between both the countries.

    A statement said that the draft MoU has been sent through a letter addressed to Pakistan’s Ambassador in China Ms Naghmana A. Hashmi.

    In this regard, Pakistan’s Ambassador in China has been authorized to sign the MoU on behalf of FBR.

    The FBR chairman in his letter has stated that the signing of the MoU will enable the Taxation Authorities of both the countries to share data and learn from each other’s best practices.

    The MoU will promote improvement in trade and investment in both countries.

  • FBR notifies revision in exemption regime under sales tax laws

    FBR notifies revision in exemption regime under sales tax laws

    ISLAMABAD: Federal Board of Revenue (FBR) has issued changes brought through Finance Act, 2019 in exemption regime under Sixth Schedule of the Sales Tax Act, 1990.

    Following changes have been made in Table-1 of the Schedule:

    i. Exemptions at the existing serial numbers 2,3, and 72, relating to meat, fish, poultry meat etc. have been amended to clearly provide that these exemptions also apply to products specified thereunder even if these products are packed.

    ii. Under serial number 19, the products of milling industry, as sold in retail packing bearing brand names, have been excluded from purview of exemption, however, wheat and meslin flour shall remain exempt even if so packed or sold under a brand name. Redundant PCT Heading 1102.1000 has also been omitted.

    iii. Serial numbers 36 and 37 pertaining to Gold and Silver, in unworked condition, have been omitted. Gold and Silver have been placed in the 8th schedule and chargeable to sales tax at the reduced rate of 1%. Gold and Silver have also been excluded from the purview of minimum value-addition tax of@ 3% at import stage under Twelfth Schedule.

    iv. The expression “excluding electricity and natural gas” has been added in serial number 52A relating to exemption on goods supplied to specified hospitals. Now, such hospitals are no more eligible for exemption on supplies of electricity and gas.

    v. The exemption at serial number 85, as available to fat filled milk, has been restricted to such milk as is not sold in retail packing under a brand name or a trademark. Such packed and branded fat filled milk now shall be subject to 10% sales tax under Eighth Schedule.

    vi. In view of doing away with the special procedure for steel industry, the exemption available to vessels / ships for breaking at serial number 95 has been omitted. Vessels imported for breaking up are now taxable at 17%. Field formations of Customs should ensure chargeability of sales tax on import of vessels since 1st July, 2019.

    vii. New serial number 151 has been added. This is a transposition of exemption under SRO 1212(I)/2018 which now has been rescinded and which provided exemption on supplies made within the tribal areas. In the transposed form, it allows further exemption on imports of industrial input including plant and machinery imported by industrial units located within tribal areas. These exemptions on imported inputs / plant and machinery shall be available subject to security mechanism specified under this serial.

    viii. Newly added serial 152 provides exemption on supplies of electricity as made to all consumers in tribal areas. However, this exemption shall neither be available to industries established after 31st May, 2018, nor to any steel and ghee /oil industries.

    ix. Through new serial number 153, imports and supplies by manufacturers of steel billets, ingots, ship plates, bars and other long re-rolled profiles, have been exempted. In lieu of this exemption, federal excise duty has been imposed on these items in sales tax mode.

    In Table-2, relating to local supplies, two changes have been made:

    (i) Exemption under serial number 16 shall not be available to ginned cotton, as the same has been subjected reduced rate of 10% in Eighth Schedule, at newly inserted serial number 65 in Table 1.

    (ii) The exemption to cottonseed oil has been provided at serial number 25.

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