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Pakistan (Punjab) Legislation |
THE PUNJAB FINANCE ACT 2019
(Act XV of 2019)
C O N T E N T S
Section Heading
1. Short title, extent and commencement.
2. Amendments in Act II of 1899.
3. Amendment in Act V of 1958.
4. Amendment in Act XV of 1977.
5. Amendments in Act I of 1997.
6. Amendments in Act XLII of 2012.
7. Amendment in section 4 in Act XVII of 2014.
8. Omission of section 10 in Act XXXV of 2016.
9. Omission of section 6 in Act XXXV of 2018.
10. Tax On Properties Other Than Agricultural Land Abutting To National / Provincial Highways And Within The Area Of Motor Ways Outside The Rating Areas In Punjab.
11. Definitions.
12. Power to make rules.
[1]THE
PUNJAB FINANCE ACT 2019
ACT XV OF 2019
[28 June 2019]
An Act to
levy, alter and rationalize certain taxes, fees and duties in the Punjab.
It is necessary
in public interest to levy, alter and rationalize certain taxes, fees and
duties in the Punjab; and, to deal with
ancillary matters.
Be it enacted
by Provincial Assembly of the Punjab as follows:
1. Short title, extent and commencement.- (1) This Act
may be cited as the Punjab Finance Act 2019.
(2) It extends to whole of the
Punjab.
(3) It shall come into force on the first
day of July 2019.
2. Amendments in Act II of 1899.- In the Stamp Act, 1899 (II of 1899), in
Schedule I:
(1) In Article 6, in sub Article (2):
(a) in clause (a), in
para (i), under the heading "Proper Stamp-duty", for the words "one hundred
thousand", the words "five hundred thousand"
shall be substituted; and
(b) in clause (b),
in para (i), under the heading "Proper Stamp-duty" for the words, "fifty thousand",
the words "five hundred thousand"
shall be substituted.
(2) In Article 40, in clause (d), in para (i),
under the heading "Proper Stamp-duty", for the words, "one hundred thousand", the words "five hundred thousand" shall be substituted.
3. Amendment
in Act V of 1958.- In the Punjab Urban Immovable Property Tax Act,
1958 (V of 1958), in section 4, for clause (g), the following shall be substituted:
"(g) buildings and lands belonging to a widow, divorcee, a disabled person or a minor
orphan, annual value of which does not exceed rupees two hundred and forty
three thousand:
provided that
where the annual value is more than rupees two hundred and forty three thousand,
the tax shall be levied on the amount in excess
of the said amount.".
Explanation: For purposes of this section, a minor orphan
lady means an unmarried female orphan up to the age of twenty five years.
4. Amendment
in Act XV of 1977.- In the Punjab Finance Act, 1977 (XV of 1977),
for SECOND SCHEDULE, the following shall be substituted:
SECOND
SCHEDULE
(See
section 3)
|
Sr.No. |
Class of persons |
Rate of tax per annum(rupees) |
|
|
1. |
Companies registered under the Companies Act,
2017 or under the relevant law for the time being in force, with paid up
capital |
|
|
|
|
i) |
Up to rupees 5 million |
10,000/- |
|
|
ii) |
exceeding rupees 5 million but not exceeding
rupees 50 million |
30,000/- |
|
|
iii) |
exceeding rupees 50 million but not exceeding
rupees 100 million |
70,000/- |
|
|
iv) |
exceeding rupees 100 million but not
exceeding rupees 200 million |
100,000/- |
|
|
v) |
exceeding rupees 200 million |
100,000/- |
|
2. |
Persons other than companies, owning
factories as defined under the Factories Act, 1932 and having |
|
|
|
|
i) |
employees not exceeding 10 |
1,500/- |
|
|
ii) |
employees exceeding 10 but not exceeding 25 |
5,000/- |
|
|
iii) |
employees exceeding 25 |
7,500/- |
|
3. |
Persons other than companies owning
commercial establishments having 10 or more employees |
|
|
|
|
i) |
(a) Within
Metropolitan and Municipal Corporation limits (b) Others
|
6,000/- 4,000/- |
|
|
ii) |
All other commercial establishments other
than wholesalers and retailers |
2,000/- |
|
4. |
Persons engaged in the import or export of
goods who, during the preceding financial year, imported or exported goods of
the value |
|
|
|
|
i) |
exceeding rupees 1 lac but not exceeding
rupees 1 million |
2,000/- |
|
|
ii) |
exceeding rupees 1 million but not exceeding
rupees 5 million |
3,000/- |
|
|
iii) |
exceeding rupees 5 million |
5,000/- |
|
5. |
Contractors, builders and property
developers, who during the preceding financial year supplied to the Federal
or the Provincial
Government or a company or a factory or a commercial
establishment or an autonomous or a semi autonomous
organization or any Local Authority; goods, commodities and services of the
value: |
|
|
|
|
i) |
not exceeding rupees 1 million |
1,000/- |
|
|
ii) |
exceeding rupees 1 million but not exceeding
rupees 10 million |
6,000/- |
|
|
iii) |
exceeding rupees 10 million but not exceeding
rupees 50 million |
10,000/- |
|
|
iv) |
exceeding rupees 50 million |
20,000/- |
|
6. |
Persons engaged in various professions and
providing different services such as: |
|
|
|
|
i) |
Medical Consultants or Specialists/Dental
Surgeons |
5,000/- |
|
|
ii) |
Registered Medical Practitioners |
4,000/- |
|
|
iii) |
Others including Homoeopaths, Hakeems and Ayuervedics- (a) Within
Metropolitan and Municipal Corporation limits (b) Others |
3,000/- 1,000/- |
|
|
iv) |
Auditing firms (per professionally qualified
person) (a) Within Metropolitan and Municipal Corporation
limits (b) Others |
6,000/- 4,000/- |
|
|
v) |
Management and Tax Consultants Architects,
Engineering, Technical and Scientific Consultants- (a) Within
Metropolitan and Municipal Corporation limits (b) Others |
6,000/- 4,000/- |
|
|
vi) |
Lawyers |
1,000/- |
|
|
vii) |
(a) Members
of Stock Exchanges |
10,000/- |
|
|
|
(b) Money
Changer: (i) Within Metropolitan and
Municipal Corporation limits
(ii) Others |
6,000/- 2,000/- |
|
|
|
(c) Motorcycle/Scooter
dealers- (i) Within Metropolitan and Municipal Corporation
limits. (ii) Others |
10,000/- 6,000/- |
|
|
|
(d) Motor
Car Dealers and Real Estate Agents- (i) Within
Metropolitan and Municipal Corporation limits (ii) Others |
20,000/- 10,000/- |
|
|
|
(e) Recruiting
Agents- (i) Within Metropolitan and Municipal
Corporation limits (ii) Others |
20,000/- 10,000/- |
|
|
viii) |
Carriage of goods and passengers by road: (i) Within Metropolitan and Municipal
Corporation limits (ii) Others |
4,000/- 2,000/- |
|
|
ix) |
Health Clubs and Gymnasiums- (i) Within Metropolitan and Municipal
Corporation limits (ii) Others |
4,000/- 2,000/- |
|
|
x) |
Jewelers,
departmental stores, electronic goods stores, cable operators, printing
presses and pesticide dealers |
2,000/- |
|
|
xi) |
Tobacco venders- Wholesalers |
4,000/- |
|
7. |
Franchisee, Authorized dealers/Agents and
distributors |
5,000/- |
|
|
8. |
Property Developers / Builders &
Marketing Agent/Company engaged in the development marketing and management
of residential,
commercial or industrial properties |
50,000/- |
|
|
9. |
Hotels, Hostels (except hostels owned and
operated by an educational institution itself) / Guest Houses / Motels /
Resorts providing
lodging facilities |
5,000/- |
|
|
10. |
Restaurants / Eateries / Fast Food Points /
Ice Cream Parlors / Bakeries / Confectioners /
Sweets Shops with air conditioning facility |
5,000/- |
|
5. Amendments
in Act I of 1997.- In the Punjab
Agricultural Income Tax Act, 1997 (I of 1997):
(1) for the FIRST SCHEDULE, the following shall be substituted:
"THE
FIRST SCHEDULE
[see section 3 (1)]
|
(1)
Slab
of total cultivated land, computed Rate of tax per acre as irrigated land, by
treating one acre of irrigated land as equal
to two acre of unirrigated land,
excluding mature orchards. |
Rate of tax per acre |
|
(i) Not exceeding 121/2 acres |
Nil. |
|
(ii) Exceeding 121/2 acres but not
exceeding 25 acres |
Rs. 300/- |
|
(iii) Exceeding 25 acres but not exceeding
50 acres |
Rs. 400/- |
|
(iv) Exceeding 50 acres |
Rs. 500/- |
(2) Mature orchards
(i)
Irrigated Rs.
600/-
(ii)
Unirrigated Rs.
300/-".
(2)
for the SECOND SCHEDULE, the following shall be
substituted:
"THE
SECOND SCHEDULE
[see section 3 (3)]
RATES OF TAX ON TOTAL AGRICULTURAL INCOME
The rate of tax on total agricultural income
shall be as under:
|
(1)
|
Where
the total income does not exceed Rs.400,000/- |
0% |
|
(2)
|
Where
the total income exceeds Rs.400,000/- but does not exceed Rs.800,000/- |
Rs.1,000/- |
|
(3)
|
Where the total income exceeds Rs.800,000/- but does
not exceed Rs.12,00,000/- |
Rs.2,000/- |
|
(4)
|
Where the total income exceeds Rs.12,00,000/- but does
not exceed Rs.24,00,000/- |
5% of the amount
exceeding Rs.12,00,000/- |
|
(5)
|
Where the total income exceeds Rs.24,00,000/- but does
not exceed Rs.48,00,000/- |
Rs.60,000/- plus 10% of
the amount exceeding Rs.24,00,000/- |
|
(6)
|
Where the total income exceeds Rs. 48,00,000/- |
Rs.300,000/-
plus 15% of the amount exceeding Rs.48,00,000/-". |
6. Amendments in Act XLII of 2012.- In the
Punjab Sales Tax on Services Act 2012 (XLII of 2012):
(1) In section 14, in subsection (2), after
the full stop, the following explanation shall be added:
"Explanation: The word "charged"
used in this subsection means and includes the tax liable to be charged under
this Act or the rules made thereunder.".
(2) In section 16B, in subsection (1):
(a) in clauses (g)
and (h), for the word "sixteen", the word "fifteen" shall be substituted; and
(b) for clause (n),
the following shall be substituted:
"(n) goods and services not related to the taxable supplies made
or services rendered by the registered person;".
(3) After section 24, the following new
section 24A shall be inserted:
"24A. Determination of minimum tax liability.- Notwithstanding anything contained
in section 24, where a registered person fails to file a return, an officer of
the Authority,
shall, subject to such conditions as specified by the Authority,
determine the minimum tax liability of the registered person.".
(4) In
section 48, in subsection (2), in the TABLE:
(a) in
entry number 2, in column 3, after the word "provided", the word "further" shall
be inserted; and
(b) in entry number 9, in column 2, for the words "in connection
with recovery of the tax", the words "or tempers a seal placed by an officer
of
the Authority" shall be substituted.
(c) after entry number 16, in column 1 to 4, the following new
entries 17, 18, 19 and 20 shall be inserted:
|
"17 |
Where any
person fails or refuses to issue a tax invoice. |
Such
person shall be liable to pay a penalty of twenty thousand rupees on first
default and fifty thousand rupees for each subsequent
default. In
case of three acts of such default, the business premises shall be liable to
be sealed for a period which may extend to one
month. |
30 |
|
18 |
Where any
person fails to intimate any change in particulars of registration including
the particulars relating to business address,
branches etc. within fourteen
days. |
Such
person shall be liable to pay a minimum penalty of fifty thousand rupees. |
25 |
|
19 |
Where any
person fails to declare, conceals any of business bank accounts or gives
misleading declaration or fails to intimate
any change in business bank account
within fourteen days of such change. |
Such
person shall be liable to pay a penalty which may range from one hundred
thousand rupees to five hundred thousand rupees. |
25 |
|
20 |
Where any
person either avoids, defies, fails to comply with electronic invoicing
system or issues invoices bypassing the electronic
invoicing system. |
Such
person shall be liable to pay a penalty of up to one hundred thousand rupees,
but not less than twenty five thousand rupees. In
case of three consecutive defaults, the business premises of such person may
further be liable to sealing for a period which
may extend to one month. |
59A" |
(5) In section 59B, after subsection (2), the following
new subsection (2A) shall be inserted:
"(2A) The Authority may, in
the prescribed manner, devise, implement and declare mandatory an electronic
invoicing system for issuance of
tax invoices by a registered person or a class
of registered persons or a service or a class of services.".
(6) In section 60, in subsection (1), for clause
(d), the following shall be substituted:
"(d) Other officers of the Authority: Such cases
or class of cases as may be prescribed by the Authority.".
(7) In section 66, for subsection (1), the
following shall be substituted:
"(1) Any
person including an officer of the Authority not below the rank of an
Additional Commissioner, aggrieved by any order passed by the:
(a) Commissioner
(Appeals) under subsection (4) of section 64 or section 65;
(b) Commissioner
through adjudication under section 60 or 61; or
(c) Authority under section 62,
may, within
thirty days of the receipt of such decision or order, prefer an appeal to the
Appellate Tribunal.".
(8) In section 70, in subsection (1), in clause
(c), after the words "bank accounts" the words "and recover the amount payable
or recover
such amount without attachment" shall be inserted.
(9) In Second
Schedule:
(a) at
S.No.15, in
columns 1 to 4, the following
shall be substituted:
|
(i) Services provided
by property developers, builders and promoters (including their allied
services). Excluding: Actual purchase value
or documented cost of land. (ii) Affordable
housing services provided under Government sponsored housing programs. |
9807.0000 and respective sub-headings of
heading 98.14 |
(i) Eight percent
without input tax adjustment or sixteen percent with input tax adjustment;
and (ii) Five percent without input tax
adjustment or sixteen percent with input tax adjustment; |
(b) at S.No.34, in column 2, for the words "and interior decorators",
the words "interior decorators and interior designers" shall be substituted;
(c) at S.No.43, in column 2, after the words "games", the
following expression shall be inserted:
",
amusement parks, arcades and other recreation facilities,";
(d) at S.No.54, in columns 1 to 4, the following shall be
substituted:
|
"54 |
Facilities for travel originating from Punjab by Air
for domestic and international travel. EXCLUDING: Air travel services provided to Hajj or Umrah
passengers, diplomats and supernumerary crew. |
9803.1000 9803.1100 |
Five
percent without input tax adjustment" and |
(e) after S. No. 63, in columns 1 to 4, the
following new entries 64, 65, 66, 67 and 68 shall be inserted:
|
64 |
Dress designing and stitching services. |
Respective headings |
Sixteen percent |
|
65 |
Rental of bulldozers, excavators, cranes,
construction equipment, Scaffolding, framework and shuttering, generators,
storage containers,
Refrigerator, shelf or rack renting, etc |
Respective headings |
Sixteen percent |
|
66 |
Services in respect of treatment of textile,
leather but not limited to Dyeing services, Edging and cutting, cloth
treating, water
proofing, Embroidery, Engraving, Fabric bleaching, Knitting,
Leather staining, Leather working, Pre-shrinking, Colour separation
services,
pattern printing and shoe making services. |
Respective headings |
Sixteen percent |
|
67 |
Apartment house management, real estate management
and services of rent collection. |
Respective headings |
Sixteen percent |
|
68 |
(i) Medical consultation/ visit fee exceeding Rs.1,500 per consultation/ visit of doctors, medical
practitioners and medical specialists. (ii) Bed/ room charges of hospitals exceeding Rs.6,000/-
per day per bed / room |
9815.1000 and other
Respective headings. |
Five percent without input tax adjustment". |
7. Amendment
in section 4 in Act XVII of 2014.- In the Punjab Finance Act 2014 (XVII of 2014),
in section 4, clause (b) shall be omitted.
8. Omission
of section 10 in Act XXXV of 2016.- In the Punjab Finance Act 2016 (XXXV of
2016), section 10 shall be omitted.
9. Omission of section 6 in Act XXXV of 2018.- In the Punjab Finance Act 2018 (XXX of 2018), section 6
shall be omitted.
10. Tax On Properties
Other Than Agricultural Land Abutting To National / Provincial Highways And
Within The Area Of Motor Ways Outside
The Rating Areas In Punjab.- (1) There shall be charged, levied,
assessed and paid a tax at the rate of five percent of the Annual Taxable Value
of all categories
of properties other than agricultural land, outside limits of
the rating area, abutting to national or provincial highway or part
thereof or
within the area of motorways, in such limits and lengths, as may be notified by
the Government.
(2) The tax under this section shall be due from the owner or
the occupant, jointly and severally to be charged, levied, assessed and
paid in
addition to any other tax charged and collected under any other law for the
time being in force and shall be the first charge
upon the property unit.
(3) The tax under this
section shall not be leviable in respect of the buildings and lands:
(i)
Annual
Taxable Value of which does not exceed rupees five hundred thousand belonging
to a widow, a divorcee, a disabled person, a
minor orphan or a female unmarried
orphan upto the age of twenty five years;
(ii)
owned
by Federal or Provincial Government; or
(iii)
exclusively used by public
for worship.
(4) The tax, including surcharge, payable
under this section, shall be administrated and regulated under the provisions
of the Punjab
Urban Immovable Property Tax Act, 1958 (V of 1958).
(5) Notwithstanding any other provision of
this section, the Government may, by notification in the official Gazette,
exempt any property
unit or persons, or classes thereof, from the whole or any
part of the tax chargeable under this section, subject to such conditions
and
limitations as may be specified by the Government.
Explanation: A word or term used but not defined
in this Act shall have the same meanings as defined in the Punjab Urban
Immovable Property Tax
Act, 1958 (V of 1958).
11.
Definitions.- In this Act:
(a)
"Annual
Taxable Value" means the value of a distinct property unit excluding the value
of any machinery etc. thereof, which shall
be the basis of determination of tax
assessed, levied and recovered under section 10 of this Act;
(b)
"buildings
and lands" in relation to the tax under section 10 of this Act includes a
parcel or portion thereof having distinct boundaries
intended for specific
purpose including residential, commercial or industrial use;
(c)
"Government"
means Government of the Punjab;
(d)
"motorways"
means the multiple-lane, high speed, limited access or controlled access
highways in Punjab which are owned, maintained
and operated as such by the National
Highway Authority;
(e)
"national
highways" means the highways in the Punjab which are owned, maintained and
operated as such by the National Highway Authority;
(f)
"owner"
includes a mortgagee with possession, a lessee in perpetuity, a trustee having
possession of a trust property and a person
to whom an evacuee property has
been transferred provisionally or permanently;
(g)
"prescribed"
means prescribed by the rules made under this Act;
(h)
"provincial
highways" means the highways, including but not limited to in Punjab which are
owned, maintained and operated by the province
of the Punjab; and
(i)
"rating area" means urban area where property tax is levied
under the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958).
12. Power to make rules.- The
Government may make rules for carrying out the purposes of any of the provisions
of this Act.
[1]This Act was passed by the Punjab Assembly on 26 June 2019;
assented to by the Governor of the Punjab on 28 June 2019; and was published
in
the Punjab Gazette (Extraordinary), dated 28 June 2019,
pages 4105-14.
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