| A BILL | |
| to rationalize, levy and enhance certain taxes and duties in the Province of Sindh and to amend certain laws in the Province ofSindh. | |
| WHEREAS it is expedient to rationalize, levy and enhance certain taxes and duties in the Province of Sindh and to amend certain laws in the Province of Sindh, in the manner hereinafter appearing; | Preamble. |
| It is hereby enacted as follows:- | |
| 1. (1) This Act may be called the Sindh Finance Act, 2019.
(2) It shall come into force on and from 1st day of July, 2019. | Short title and commencement. |
| 2. In the Stamp Act,1899, in its application to the Province of Sindh, in the Schedule– (i) in Article 16 (A)(i)(ii) and 16 (B), for the existingentries there-against in column 2, the following shall respectively be substituted:– | Amendment of Sindh Act No.II of 1899. |
| “At the rate of one percent of value in the valuation table or at the floating rate charged on the actual value.”; | |
| (ii) in Article 20, in clause (ii), for the existing entries there-against in column 2, the following shall be substituted: – | |
| “At the rate of one percent of value in the valuation table or at the floating rate charged on the actual value.”; | |
| (iii) in Article 21 – | |
| (a) in clauses (i), (ii) and (iv), for the existing entries there-against in column 2, the following shall be substituted: – | |
| “At the rate of one percent of value in the valuation table or at the floating rate charged on the actual value.”; | |
| (b) for clause (iii), the following shall besubstituted: | |
| “(iii)Rent-based 1.5% of the total rent lease/license/ due for the entireperiod agreement oflease/license/ agreement”; | |
| (iv) in Article 29,for the existing entries there-against in |
column 2, the following shall be substituted: –
“At the rate of one percent of value in the valuation table or at the floating rate charged on the actual value.”;
- in Article 30, in sub-clause (ii) for the words “two percent of the value in accordance with the valuation under Section 27-A & 27-B”, the words “At the rate of one percent of value in the valuation table or at the floating rate charged on the actual value” shall be substituted.
- after Article 31, following new Article shall be added:-
“32. Trust
| (i) Where Trust is made in respect of immovable property. | At the rate of one percent of valuein the valuation table or at the floating rate charged on the actualvalue. |
| (ii)Where Trust is made for Mosque, Madressah, Imambargah, Temple, Church or other places ofworship. | Five Hundred Rupees |
| (iii) In all other cases. | Two percent of the Trust Fund.’’; |
- after Article 32, the following shall be added:-
Explanation. –For the purpose of the Schedule –
- the term “actual value” means the value recorded in thedocument;
- the stamp duty rate shall be 1% for the determination of floating rate;and
- the floating rate shall be determined as under:-
Provided that the floating rate shall only be applicable if actual value is higher than the value determined in the Valuation Table.”.
- In the Sindh Motor Vehicles Taxation Act, 1958, in section 3, in sub-section (1), in the third proviso, in the Table, in column “Rate of Tax”, for the existing figures at serial No. 1 and 2, the following shall be substituted:-
Amendment of West Pakistan Act No.XXXII of 1958.
| “01. | Rs.150,000/- |
| 02. | Rs.75,000/-.”. |
- In the Sindh Finance Act, 1964, for the Seventh Schedule, the following shall be substituted:-
“SEVENTH SCHEDULE
(See section 11)
Amendment in Sindh Act XXIV of 1964.
| S.N o. | Categories | Rate of Tax per annum |
| 1. | All Persons assessed to Income Tax.- All persons engaged in any professional, trade calling or employment, other than those mentioned hereinafter and assessed to in the preceding financial year. | Rs.500/- |
| 2. | All Limited Companies with Paid up capital and Reserves.- All Limited Companies, Modarbas, Mutual Fund, and any other body corporate with “paid-up capital” or “paid up share capital and reserves” in the preceding year whichever is more. (i) Not exceeding Rs.25 Million. |
Rs.20,000/- |
| (ii) Exceeding Rs.25 Million but not exceeding Rs.50 Million. | Rs.40,000/- | |
| (iii) Exceeding Rs.50 Million but not exceeding Rs.75 Million. | Rs.60,000/- | |
| (iv) Exceeding Rs.75 Million but not exceeding Rs.100 Million. | Rs.80,000/- | |
| (v) Exceeding Rs.100 Million. | Rs.100,000/- | |
| 3. | All Establishments Other than Limited Companies with Annual Turnover:- Holders of import or export license, owners of industries, factories and commercial establishments; contractors engaged in construction work of supplying goods or providing services or lab our; all whole sellers and agents, good or services for others as owner or on commission basis, medical and legal practitioners, auditors, video shop and any other persons providing professional services and shops assessed to income tax in the proceeding professional services and shops assessed to turnover.
(i) Not exceeding Rs.1 Million. |
Rs.1,500/- |
| (ii)Exceeding Rs.1 Million but not exceeding Rs.10Million. | Rs.3,000/- | |
| (iii) Exceeding Rs.10 Million but not exceeding Rs.100 Million. | Rs.10,000/- | |
| (iv) Exceeding Rs.100 Million but not exceeding Rs.200 Million. | Rs.15,000/- | |
| (v) Exceeding Rs.200 Million but not exceeding Rs.500 Million. | Rs.30,000/- | |
| (vi) Exceeding Rs.500 Million. | Rs.100,000/- | |
| 4. | All factories, shops, or establishments, including Video shops, real estate, shops/agencies and car dealer not assessed toincome tax in the preceding financial year | Rs.1,000/- |
| 5. | All Petrol Pumps & CNG Stations. | Rs.5000/- |
- In the Sindh Finance Act, 2010, in section 4–
- in sub-section (3), for the Table in A, B and C, the following shall be substituted:-
A. Residential immovable property (other than flats):
| i. | Where value of immovable property is recorded
For all categories of valuation table; provided that category II and lower categories of valuation tableshall be exempted upto 240 sq. yds. |
At the rate of one and half percent of value in the valuation table or at the floating rate charged on the actual value. |
| ii. | Where the value of immovable propertyis not recorded. | Rs.75 per sq.yd of the landed area |
- Residentialflats:
Amendment of Sindh Act No.II of 2010.
| i. | Where value of immovable property is recorded-
(a) From 1000 sq.ft. areas in category A-I and I of the valuation table; |
At the rate of one and half percent of value in the valuation table or at the floating rate charged onthe actual value. |
| (b) from 1501 sq. ft. and above in all categories of the valuation table | At the rate of one and half percent of value in the valuation table or at the floating rate charged on the actual value. | |
| iii. | Where the value of immovable property is not recorded | Rs.10 per sq.ft of the landed area |
- Commercial and Industrial immovableproperty:
| i. | Where the value of immovable property isrecorded | At the rate of one and half percent of value in the valuation table or at the floating rate charged onthe actual value. |
| ii. | Where the value of immovable property is not recorded | Rs.100 per sq.yd. of the landedarea. |
Explanation. –For the purpose of this section –
- the term “actual value” means the value
recorded in the document; and
- the capital value tax rate shall be one and half percent for the determination of floatingrate;
- the floating rate shall be determined as under:-
Provided that the floating rate shall only be applicable if actual value is higher than the value determined in the Valuation Table.”;
- in sub-section (4), for the words “registering or attesting”, the words “registering, recording or attesting” shall be substituted;
- for sub-sections (9) and 10, the following shall be substituted:-
“(9) Notwithstanding anything contained in this Act, the Capital Value Tax for all properties to be transferred to and from Real Estate Investment Trust (REITs) shall be charged
| at the rate of one and half percent of the value in the valuation table or at the floating rate charged on the actual value.
(10) The Registration Fee for all properties to be transferred to and from Real Estate Investment Trust (REITs) shall be charged at the rate of 0.5% of the value in the valuation table or at the floating rate charged on the actual value.”. | ||
| 6. | In the Sindh Sales Tax on Services Act, 2011 – (i) in section 2- (a) after clause (13A), the following new clause shall be inserted:- | Amendment in Sindh Act No. XII of 2011. |
| “(13B) “Auditor” means a person appointed as an Auditor of Sindh Revenue Board under section 34; | ||
| (b) after clause (19), the following new clause shall be inserted: – | ||
| “(19A) “cab aggregator” means a person who is an aggregator or operator or intermediary or online marketplace who canvasses or solicits or facilitates passengers for travel by motor vehicles like taxi, cab, car, van, motorcycle and rickshaw, and who connects the passenger or the intending passenger to a driver of any of the aforesaid motor vehicles through telephone, cellular phone, internet, web- based services or GPS or GPRS-based services, electronic or digital means, whether or not he charges or collects any fee, fare, commission, brokerage or other charges or consideration for providing or rendering such services;”; | recording or attesting” shall be substituted. | |
| (c) in clause (42A), after the words “pattern for”, the word and comma “fabrics” and after the word “like”, the words and the commas “tailoring, stitching,” shall respectively be inserted; | ||
| (d) after clause (51A), the followingnew clause shall be inserted:- | ||
| “(51B) “indoor sports and games center”, by whatever name called, includes a person who provides or renders the facility of indoor sports or games whether for amusement, recreation or otherwise, for a consideration in its premises;”; | ||
| (e) after clause (53), the following new clause shall be inserted:- | ||
| “(53A) “insurance agent” includes an agent as defined in clause (a) of sub-rule (1) of rule 2 of the | ||
Insurance Rules, 2017 and also includes an insurance broker as defined in clause (xxviii) of section 2 of the Insurance Ordinance, 2000 (Ordinance No. XXXIX of2000);”;
(f) after clause (60A), the following new clause shall be inserted:-
“(60B) “online marketplace” means an information technology platform run by e-commerce entity or organization over an electronic network that acts as a facilitator in transactions that occur between a buyer and a seller or between a service provider and servicerecipient;”;
(g)after clause (72C), the following new clause shall be inserted:-
“(72CC) “renting of machinery, equipment, appliances and other tangible goods” means the services provided or rendered, to any person by another person, by renting of machinery, equipment, appliances and other tangible goods including bulldozers, excavators, road rollers and levelers, cranes, construction machinery and equipment, earthmoving machinery and equipment, scaffolding, generators, refrigerators or in relation to suchrenting.
Explanation. The commodity or equipment leasing and the hire purchase leasing, as classified under tariff heading 9813.3020 and 9813.3030, respectively, and also the rent a car and automobile rental service, as classified under tariff heading 9819.3000, shall be excluded from the purview of thisclause;”;
(h) after clause (83), the following new clause shall be inserted: –
“(83A) “Sindh Sales Tax Officer” means a person appointed as a Sindh Sales Tax Officer of the Sindh Revenue Board under section34;”;
- after clause (84), the following new clause shall be inserted:-
“(84A) “site preparation and clearance, excavation and earth moving and demolition services” means any service provided or rendered, to any person by another person, in relation to site preparation and clearance, excavation and earthmoving and demolition and such other similar activities, including –
- drilling, boring and core extraction servicesfor
construction, geophysical, geological and similar purposes but not including the services in relation to mining of minerals, oil or gas; or landfill, leveling, trench digging, rock removal, blasting and similar services; or
- soil stabilization;or
- horizontal drilling for passage of cables or drain pipes;or
- land reclamation work;or
- contaminated top soil stripping work; or demolition or wracking of building, structure or road;”;
- after clause (98A), the following new clause shall be inserted:-
“(98AA) “training services” means the training services provided or rendered by any person, institute or establishment, by whatever name called, for imparting skill or knowledge or lesson on any subject or field, with or without issuance of a certificate, and includes the services ofvocational, professional, technical, commercial or specialized trainings, courses, seminars, workshops and lectures imparted for consideration but does not include the services of coaching or training of sports;”;and
- after clause (99), the following new clauses shall be added:-
“(100) “warehouses or depots for storage or cold storages” means the facility or space provided or rendered or let out on rent or otherwise for the storage, cold storage or warehousing of goods including those in the form of liquids and gases, but not including the storage of food grains and fresh vegetables and fruits not subjected to further processing and also not including the storage in public bonded warehouses as defined in clause (69);and
(101) “waste collection, transportation, processing and management services” means services provided in the matters of collection, processing, transportation, disposal, recycling and management of all kinds of wastes, waste materials and garbage and includes road and street cleaning services, whether manually, mechanically or otherwise.”;
- in section 13, after sub-section (2), the following new sub-section shall be added:-
“(3) Where a person or class of persons is required to
withhold or deduct full or part of the tax on the provision of any taxable service or class of taxable services and either fails to withhold or deduct the tax or, having withheld or deducted the tax, fails to deposit the tax in the Government treasury, such person or class of persons shall be personally liable to pay the amount of tax and the default surcharge thereon in the prescribed manner.”;
- in section 15A, in sub-section (1), in clause (j), afterthe
words “specific rate”, the word “or” shall be inserted;
- in section 26, in sub-section(1)-
- in clause (b), the word “and” shall be omitted;and
(b)for clause (c), the following shall be substituted: –
“(c) records of tax invoices and debit and credit notes
issued by the person;
- records of tax invoices and debit and credit notes received by theperson;
- records of customs documents (goods declaration under section 30 of the Customs Act, 1969 and its ancillary documents);and
- such other records as may be specified bythe
Board.”;
- in section 27, in sub-section (2), for the words “Assistant Commissioner SRB” the words “Auditor SRB or Sindh Sales Tax Officer SRB” shall besubstituted;
- in section 28–
- in sub-section (1), for the words “Assistant Commissioner SRB”, wherever occurring, the words “Auditor SRB” shall be substituted;and
- in sub-section (2), the full stop at the end shall be replaced by a colon and thereafter the following proviso shall be added:-
“Provided that the officer of the SRB may, with the permission of the Commissioner, conduct the audit in the place of business or the office of the registered person directing him to produce the records and documents in such premises as indicated in the notice.”;
- in section 29, in sub-section (1), in clause (d), for the words “on to case”, the words “on case” shall be substituted;
- in section 34, in sub-section (1), the commas and words “by notification in the official Gazette” and the words “specified in the notification” shall beomitted;
|
- in section 43, in the Table, after S.No.2 and the entries relating thereto in columns 1, 2 and 3, the followingshall be inserted:-
”
- in section 52, in sub-section (1), for the words “a Assistant Commissioner SRB”, the words “an Auditor SRB or a Sindh Sales Tax Officer SRB” shall be substituted;
- in section 54A, in sub-section (3), after the words “invoice” appearing at the end, the words “under the e- invoicing system” shall beadded;
- in section 58, in sub-section (4), for the words “recovery of any”, the words “recovery of the whole or any part of the” and for the word “sixty”, the words “one hundred twenty” shall respectively besubstituted;
- in section 60–
- in sub-section (4)–
- in clause (a), for the words “three years experience as Commissioner SRB”, thewords
- in sub-section (4)–
“five years experience as Commissioner (Appeals) SRB” shall besubstituted;
- in clause (b), after the words “as Commissioner SRB”, the words “including atleast three years experience as Commissioner (Appeals) SRB” shall beadded;
- in clause (c), for the word “years” appearing at the end, the words “but not below the age of forty-five years.” shall be substituted;and
- in sub-section (14), for the word “appoint”, the commas and words “at the request of the Chairperson, nominate an Officer not below the rank of BS 20 to be” shall besubstituted;
(xiv) in section 65A, the words “for inordinate” shallbe
omitted;
(xv) in section 66, in sub-section (1), in the proviso, the full stop at the end shall be replaced by a colon and thereafter the following second proviso shall be added: –
“Provided further that in cases where assessment of tax has been made under section 23 or where determination of tax not levied or short levied has been adjudged under section 47, action for the recovery of the tax and the default surcharge and penalty relating thereto shall not be made under this section for a period of thirty days from the date of the order of such assessment or determination.”;
(xvi) in section 84, the existing provisions shall be numbered as sub-section (1) and thereafter the following new sub- section shall be added: –
“(2) All notifications and orders issued and notified in exercise of the powers conferred upon Government or with the approval of Government under this Act, before the commencement of the Sindh Finance Act, 2019, shall be deemed to have been validly issued and notified in exercise of those powers and with the approval of Government, as the case may be.”;
- in the First Schedule, in the Table-
- after tariff heading “9806.5000”, in column 1 and the entries relating thereto in column 2, the following shall be added:-
| “ | 9806.6000 | Renting of machinery, equipment, appliancesand other tangible goods | ”; |
- for the tariff headings “9812.9000” to “9812.9090” in column 1 and the entries relating thereto in column 2, the following shall be substituted,namely:
–
| “ | 9812.7000 | Other specified telecommunication services |
”; |
| 9812.7100 | Audio text services | ||
| 9812.7200 | Teletext services | ||
| 9812.7300 | Trunk radio services | ||
| 9812.7400 | Paging services including voice paging services and radio pagingservices | ||
| 9812.7900 | Others | ||
| 9812.8000 | Tracking and alarm services | ||
| 9812.8100 | Vehicle tracking and other trackingservices | ||
| 9812.8200 | Burglar and security alarm services | ||
| 9812.8900 | Others | ||
| 9812.9000 | Telecommunication services not elsewherespecified |
- against tariff heading “9813.4100” in column 1, for the word “Guarantee” in column 2, the words “Guarantee including bank guarantee” shall be substituted;
- against tariff heading “9813.4400” in column 1, after the word “of” in column 2, the words and comma “cheque book,” shall beinserted;
(e) for the tariff headings “9813.4700”, “9813.4800”, “9813.4900”, “9813.4910” and “9813.4990” in
column 1 and the entries relating thereto in column 2, the following shall be substituted, namely: –
| “ | 9813.4700 | Commission, including bill discounting commission |
”; |
| 9813.4800 | Safe deposit lockers and safe vaults | ||
| 9813.4900 | Other services, not elsewherespecified |
- after tariff heading “9824.0000” in column 1 and the entries relating thereto in column 2–
- for the words “General Insurance Agents”, the words “Insurance agents” shall besubstituted;
- the following tariff headings shall be omitted, namely:-
| “ | Data Processing and Provisionof information, services of Engineers, handling and storage of goods |
”; | |
| Packaging services | |||
| Coaching Centres | |||
| Vocational Centres | |||
| Film and Drama studios |
- in the description “Valuation services, including competency and eligibility testing services” in column 2, the following shall be added,namely:-
| “ | Services provided or rendered by cab aggregator and the services provided or rendered by the owners or drivers of the motor vehicles using the cab aggregator services |
”; | |
| Warehouses or depots for storage or cold storages | |||
| Services of mining of minerals and allied and ancillary services in relationthereto | |||
| Site preparation and clearance, excavation and earth movingand demolition services | |||
| Waste collection, transportation, processing and management services | |||
| Vehicle parking and valet services | |||
| Electric power transmission services |
- in the Second Schedule, in the Table, in Part B-
- after tariff heading “9806.4000” in column (1) and the entries relating thereto in columns (2) and (3), the following shall be added, namely:-
| “ | 9806.6000 | Renting of machinery, equipment, appliances and other tangiblegoods | 13% | ”; |
- after tariff heading “9812.6390” in column (1) and the entries relating thereto in columns (2) and (3), for the tariff headings “9812.9000 to 9812.9090” in column (1) and the entries relating thereto in columns (2) and (3),the
following shall be substituted, namely:-
| “ | 9812.7000 | Other specified telecommunication services | 19.5% |
”; |
| 9812.7100 | Audio text services | 19.5% | ||
| 9812.7200 | Teletext services | 19.5% | ||
| 9812.7300 | Trunk radio services | 19.5% | ||
| 9812.7400 | Paging services including voice paging services andradio paging services | 19.5% | ||
| 9812.7900 | Others | 19.5% | ||
| 9812.8000 | Tracking and alarm services | 19.5% | ||
| 9812.8100 | Vehicle tracking and other trackingservices | 19.5% | ||
| 9812.8200 | Burglar and security alarmservices | 19.5% | ||
| 9812.8900 | Others | 19.5% | ||
| 9812.9000 | Telecommunication services not elsewhere specified | 19.5% |
- against tariff heading “9813.4100” in column (1), for the word “Guarantee” in column (2), the words “Guarantee including bank guarantee” shall besubstituted;
- against tariff heading “9813.4400” in column (1), after the word “of” in column (2), the words and comma “cheque books” shall be inserted;
- for the tariff headings “9813.4700”, “9813.4800”, “9813.4900”, “9813.4910” and “9813.4990” in column (1) and the entries relating thereto in columns (2) and (3), the following shall be substituted, namely: –
| “ | 9813.4700 | Commission, including bill discounting commission | 13% |
”; |
| 9813.4800 | Safe deposit lockers and safevaults | 13% | ||
| 9813.4900 | Other services, not elsewherespecified | 13% |
- after tariff heading “9821.1000” in column (1) and the entries relating thereto in columns (2) and (3), the following shall be inserted, namely:-
|
“
|
”;and
- after tariff heading “9845.0000” in column (1) and the entries relating thereto in columns (2) and (3), the following shall be added,namely:-
| “ | 9846.0000 | Services provided or rendered by cab aggregator and the services provided or rendered by the owners or drivers of the motor vehicles using thecab aggregator services | 13% |
”. |
| 9847.0000 | Warehouses or depots for storage or cold storages | 13% | ||
| 9848.0000 | Training services | 13% | ||
| 9849.0000 | Actuarial Services | 13% | ||
| 9850.0000 | Services of mining of minerals and allied and ancillary services in relation thereto | 13% | ||
| 9851.0000 | Site preparation and clearance, excavation and earth moving and demolition services | 13% | ||
| 9852.0000 | Waste collection, transportation, processing and management services | 13% | ||
| 9853.0000 | Vehicle parking and valetservices | 13% | ||
| 9854.0000 | Electric power transmission services | 13% | ||
| 9855.0000 | Insurance agents | 13% |
- In the Sindh Development and Maintenance of Infrastructure Cess Act, 2017, for the existing Schedule, the following shall be substituted:-
“SCHEDULE
(See Section 2 (k) & 3)
Amendment of Sindh Act No.XVIII of 2017.
| NET WEIGHT OF GOODS | RATE OF CESS ALONGWITH DISTANCE |
| Upto 1250 Kilograms. | 1.20 % of total value of goods as assessed by the Customs Authorities plus 1 Paisa per Kilometer. |
| Exceeding 1250Kilograms | 1.21 % of total value of goods as assessed by the Customs |
| but not exceeding 2030 Kilograms. | Authorities plus 1 Paisa per Kilometer. |
| Exceeding 2030 Kilograms but not exceeding 4060 Kilograms. | 1.22 % of total value of goods as assessed by the Customs Authorities plus 1 Paisa per Kilometer. |
| Exceeding 4060 Kilograms but not exceeding 8120 Kilograms. | 1.23 % of total value of goods as assessed by the Customs Authorities plus 1 Paisa per Kilometer. |
| Exceeding 8120 Kilograms but not exceeding 16000 Kilograms. | 1.24 % of total value of goods as assessed by the Customs Authorities plus 1 Paisa per Kilometer. |
| Exceeding 16000 Kilograms. | 1.25 % of total value of goods as assessed by the Customs Authorities plus 1 Paisa per Kilometer. |
Explanation-I: For the purpose of the Schedule, the “value” means total value of Goods as assessed by the Custom Authorities upon entering in and using the Infrastructure of the Province and “distance” means the distance covered within the Province.
Explanation-II: Notwithstanding the provision of section 3, the cess on the goods leaving the Province for outside the country, through air or sea, shall be charged at the rate of zero percent.”.
STATEMENT OF OBJECTS AND REASONS
In order to rationalize, levy and enhance certain taxes and duties and to amend certain laws in the Province of Sindh, it is expedient to enact a law in the subject matter.
The Bill seeks to achieve the above object.
