Every motor vehicle registering authority of the Excise and TaxationDepartment shall collect advance tax from the buyers of the locallymanufactured motor vehicles who subsequently sell it within 90 days ofdelivery of such vehicles, whether prior to or after registration, at thespecified rates.
Sources told ProPakistani that the Law Division has vetted the Ordinancewhich would be promulgated after the signing of the President.
Under the draft Tax Law Amendment Ordinance 2021, the Board would have thepower to share data or information including real-time data, videos, imagesreceived under the Sales Tax Act 1990 with any other ministry or divisionof the federal government or provincial government, subject to thelimitations and conditions as may be specified by the Board.
The government may exempt sales tax on goods temporarily imported intoPakistan by international athletes or sportsmen which would be subsequentlytaken back by them within 120 days of temporary import, as per draft TaxLaw Amendment Ordinance 2021.
Through the proposed Tax Law Amendment Ordinance 2021, every motor vehicleregistering authority of the Excise and Taxation Department shall collectadvance tax from the buyers of the locally manufactured motor vehicles whosubsequently sell it within 90 days of delivery of such vehicles, whetherprior to or after registration, at the specified rates. Provided that nocollection of this advance tax would be made after June 30, 2021.
Under the draft Tax Law Amendment Ordinance 2021, every banking companymaintaining a foreign currency value account (FCVA) or a non-residentPakistani Rupee Value Account (NRVA) of a non-resident individual holdingPakistan Origin Card (POC) or National ID Card for overseas Pakistanis(NICOP) or computerized national identity card (CNIC) shall deduct tax fromcapital gains arising on the disposal of debt instruments and governmentsecurities and certificates (including Shariah-compliant variant) investedthrough aforesaid accounts at the specified rates.
Through an amendment in section 236C of the Income Tax Ordinance 2001 underthe Tax Law Amendment Ordinance 2021, if the seller or transferor is anon-resident individual holding Pakistan Origin Card (POC) or National IDCard for overseas Pakistanis (NICOP) or computerized national identity card(CNIC) who has acquired the sale immovable property through a foreigncurrency value account (FCVA) or a non-resident Pakistani Rupee ValueAccount (NRVA) maintained with the authorized banks in Pakistan under theforeign exchange regulations issued by the State Bank of Pakistan, the taxcollected under this section from such persons shall be final discharge oftax liability in lieu of capital gains taxable under section 37 of theIncome Tax Ordinance 2001 earned by the seller or transferor from theproperty so disposed off.
If the buyer or transferee is a non-resident individual holding PakistanOrigin Card (POC) or National ID Card for overseas Pakistanis (NICOP) orcomputerized national identity card (CNIC) who has acquired the saidimmovable property through a foreign currency value account (FCVA) or anon-resident Pakistani Rupee Value Account (NRVA) maintained with theauthorized banks in Pakistan under the foreign exchange regulations issuedby the State Bank of Pakistan, the tax collected under this section fromsuch persons shall be final discharge of tax liability for such buyer ortransferee, draft Ordinance said.
Under the draft Tax Law Amendment Ordinance 2021, the rate of advance taxon sale to distributors, dealers or wholesalers of fertilizers shall be0.25 percent, if they already are or get themselves registered under theSales Tax Act 1990 within 60 days of the promulgation of the Tax LawAmendment Ordinance 2021.
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As per draft Tax Law Amendment Ordinance 2021, it is proposed that the rateof tax deducted under section 151 of the Income Tax Ordinance 2001 shall be10 percent from the profit on debt from a debt instrument whetherconventional or Shariah-compliant, issued by the federal government underthe Public Debt Act 1944 or its wholly-owned special purpose company,purchased by a resident citizen of Pakistan, who has already declaredforeign assets to the Board through a foreign currency value account (FCVA)maintained with authorized banks in Pakistan under the foreign exchangeregulations issued by the State Bank of Pakistan. Provided that the tax sodedicated would be the final tax.
The provisions of section 100BA and rule 1 of the Tenth Schedule of theIncome Tax Ordinance may not be applicable on the non-resident individualholding Pakistan Origin Card (POC) or National ID Card for overseasPakistanis (NICOP) or computerized national identity card (CNIC) or anon-resident Pakistani Rupee Value Account (NRVA) maintained with theauthorized banks in Pakistan under the foreign exchange regulations issuedby the State Bank of Pakistan,
The tax payable by cotton ginners on their income and profits shall not bemore than the sum of one percent of their turnover from cotton lint,cottonseed, cotton oilseed and cottonseed cake, the draft Ordinance stated.
The provisions of section 231A, 231AA and 236P shall not apply to theholders of the foreign currency value account (FCVA) and non-residentPakistani rupee value account (NRPRVA) in respect of their accounts only.
The provisions of clause (ae) of sub-section 1 of section 114 and section181 of the Income Tax Ordinance shall not apply to a non-residentindividual holding Pakistan Origin Card (POC) or National ID Card foroverseas Pakistanis (NICOP) or computerized national identity card (CNIC),foreign currency value account (FCVA) or a non-resident Pakistani RupeeValue Account (NRVA) maintained with the authorized banks in Pakistan underthe foreign exchange regulations issued by the State Bank of Pakistan.
Provided that this clause shall not apply in certain cases as specified inthe Tax Law Amendment Ordinance 2021.
The Ordinance is expected to waiver off other taxes already approved by theCabinet to facilitate the promotion of four-wheeler electric vehicles (EVs)in the country.
