Lahore, twin cities bricks kilns will pay monthly fixed tax of Rs 12,500, Sindh, KP and Baluchistan Rs 7,500, on cell value tax maximum Rs 9,270 exceeding $500
By M Jahangir Hayat
LAHORE: Federal Board of Revenue (FBR) Friday explained FinanceAct. 2019 Important amendments in Sales Tax Act, 1990, Federal ExciseAct 2005 and Islamabad Capital Territory (Tax On Services! Ordinance,2001.Fixed tax on brick kilns in the Tenth Schedule explained that bricksKiln are required to pay fixed monthly tax based on their location inLahore, Rawalpindi and Islamabad districts at the rate of Rs. 12,500while Attock, Chakwal, Jehlum, Mandi Bahauddin, Sargodha, Gujrat,Sialkot, Narowal, Gujranwala, Hafizabad, Sheikhupura, Kasur, NankanaSahib, Chiniot, Faisalabad, Jhang, Toba Tek Singh, Okara and Sahiwaldistricts at Rs. 10,000.
Similarly, Khushab, Mianwali, Bhakar, Layyah, Muzaffarghar, Dera Ghazi Khan, Rajanpur, Multan, Lodhran, Khanewal, Vehari, Bahawalpur, Pakpattan, Bahawalnagar, Rahim Yar Khan districts; and Sindh, Khyber-Pakhtunkhwa and Baluchistan provinces will be paying fixed tax at the rate of Rs 7,500.
Powers of Federal Government to grant zero-rating curtailed andBoard’s similar powers withdrawn: Section 4(c) has been amended tolimit the powers of Federal Government to grant zero rating toemergency conditions. The powers of the Board to grant zero-ratingthrough general orders have been withdrawn by omitting clause (d) ofsection.The FBR said that the conditions / situations under which FederalGovernment can grant exemptions through a notification have beenreduced by omitting conditions relating to protection of nationaleconomic interests in situations arising out of abnormal fluctuationin international commodity prices, removal of anomalies in taxes, anddevelopment of backward areas.
Requirement of mentioning buyer NIC for sale to un-registered personincluded Section 23, relating to issuance of invoices and particularsto be specified therein, has been amended to provide that in case ofsupplies to un-registered persons, their NIC or NTN number shall bespecified in invoice. The caveats, provided therein, are as under: NICor NTN shall not be required in case of supplies made by a retailerwhere the transaction value inclusive of sales tax amount does notexceed Rs 50,000 and the sale is being made to an ordinaryconsumer buying goods for his own consumption and not for the purpose of re-sale or processing; If it is subsequently proved that NIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith; and(iii) The condition of providing NIC or NTN shall be effective fromAugust 1, 2019.
Penalty for non-filing or late filing of sales tax return, excludingcases where delay is less than 10 days, under serial number 1 ofTable in section 33 has been enhanced to Rs 10,000. The penalty forlate filing return within 10 days of due date has been enhanced toRs. 200 per day.
Fixed sales tax rates levied on mobile and satellite phones underNinth Schedule have been rationalized as under: Cellular mobile phonesor satellite phones to be charged on the basis of import value perset, or equivalent value in rupees in case of supply by themanufacturer, at the rate as indicated against each category:—amaximum of Rs. 9,270 exceeding $500.
FED on imported and local cars has been rationalized and cars belowengine capacity 1700 cc have also been subjected to FED. However,auto-rickshaws have been excluded from this levy. Rates of both are asunder: Imported motor cars, SUVs and other motor vehicles, 87.03excluding auto rickshaws, principally designed for the transport ofpersons (other than those of headings 87.02), including station wagonsand racing cars:
Of cylinder capacity up to lOOOcc 2.5 percent ad val (b) of cylindercapacity from lOOlcc to 1799cc 5% ad val. (c) of cylinder capacity1800cc to 3000cc 25% ad val. (d) of cylinder capacity exceeding 3001cc30% ad val. Locally manufactured or assembled motor cars, SUVs and87.03 other motor vehicles, excluding auto rickshaws principallydesigned for the transport of persons (other than those of headings87.02), including station wagons and racing cars: (a) of cylindercapacity up to 1 OOOcc 2.5% ad val. (b) of cylinder capacity fromlOOlcc to 2000cc 5% ad val. (c) of cylinder capacity 200 lee and above7.5% ad val.