Finance Act, 2011.
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Main Category: | Acts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Specific Category Name: | To continue and revise certain taxes and fees in the Province. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Promulgation Date: | 05-07-2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details: | THE
KHYBER PAKHTUNKHWA FINANCE
ACT, 2011. (KHYBER PAKHTUNKHWA
ACT NO. XIII OF 2011) CONTENTS PREAMBLE SECTIONS 1. Short
title, extent and commencement. 2. Amendment
of Schedule-I to Act VII of 1870. 3. Amendment
of W.P. Act No. V of 1958. 4. Amendment
of West Pakistan Ordinance No. XIX of
1965. 5. Amendment
of Khyber Pakhtunkhwa Ordinance No. V of 1982. 6. Amendment
of Khyber Pakhtunkhwa Act No. IV of
1990. 7. Amendment
of Khyber Pakhtunkhwa Act No. I of 1996. 8. Amendment
of Khyber Pakhtunkhwa Ord. No. III of 2000. 9. Amendment
of Khyber Pakhtunkhwa Act No. VIII of 2010. THE
KHYBER PAKHTUNKHWA FINANCE
ACT, 2011. (KHYBER PAKHTUNKHWA
ACT NO. XIII OF 2011) [first published after having received the assent
of the Governor of the Khyber Pakhtunkhwa
in the Gazette of Khyber Pakhtunkhwa (Extraordinary),dated the 5th July,2011]. AN ACT to continue and
revise certain taxes and fees in the Province of the Khyber Pakhtunkhwa. Preamble.---WHEREAS it is
expedient to continue and revise certain taxes and fees in the Province of the
Khyber Pakhtunkhwa and for matters ancillary thereto or connected therewith; It is hereby
enacted as follows: 1. Short title, extent and
commencement.---(1)
This Act may be called the Khyber Pakhtunkhwa Finance Act, 2011. (2) It shall extend to the whole of the
Province of the Khyber Pakhtunkhwa. (3) It shall come into force on the 1st
day of July, 2011. 2. Amendment of Schedule-I to Act VII of 1870.---In the Court Fees Act, 1870 (Act VII of 1870), in
Schedule-I,- (i) for the existing entries against serial 1, the following
shall be substituted, namely:
(ii) the existing “Table of rates of 3. Amendment of W.P. Act No. V of
1958.---In the West Pakistan Urban Immovable Property Tax
Act, 1958 (West Pakistan Act No. V of 1958),- (i)
in section 3, in sub-section (2),
after clause (b), the following Explanations shall be inserted, namely: “Explanation-I.-Residential
buildings are the buildings which are used for the purpose of dwelling whereas
commercial buildings are the buildings alongwith any appurtenances and
installations that may be attached therewith, which are used as office
establishment or for carrying on any commerce or trade. Explanation-II.-In case when
compartmentali-zation and partition is carried out in the buildings in such a
way to collectively use the building for residential as well as commercial
purposes or to house more than one dwellings, the tax in respect of such
compartments and partitions shall be levied in a manner as if they are separate
buildings.”; (ii)
in section 4, for sub-section
(2), the following shall be substituted, namely: “(2) Notwithstanding anything to the contrary
contained in section 3, there shall not be levied and charged any tax under
this Act, in relation to buildings and lands occupied by industrial units in
any area declared by Government as “Industrial Estates” for a period of three
years with effect from 1st day of July, 2010.”; and (iii) for the existing “Schedule-I and II”, the
respective Schedules specified in Appendix-I to this Act shall be substituted. 4. Amendment of West Pakistan Ordinance
No. XIX of 1965.---In the Provincial Motor Vehicles Ordinance, 1965
(W.P. Ord. No. XIX of 1965), for section 23-A, the following shall be
substituted, namely: “23A. Penalty
in default of registration.---If any owner of a motor vehicle imported
into the country or purchased from any authorized manufacturer in the country,
fails to register it within sixty days of its import or purchase, as the case
may be, he shall, besides the registration fee prescribed under the rules, be
liable to a penalty described in the Table below: TABLE
5. Amendment of Khyber Pakhtunkhwa
Ordinance No. V of 1982.---In the Khyber Pakhtunkhwa Finance
Ordinance, 1982 (Ord. No. V of 1982), in section 3, for sub-section (1), the
following shall be substituted, namely: “(1) There shall be levied a cess, called the
Sugar-cane and Sugar-beet (Development) Cess, on sugar-cane crushed or
sugar-beet sliced by the Sugar Mills at the rate of Rupee one per maund of the
Sugar-cane or Sugar-beet, as the case may be.” 6. Amendment of Khyber Pakhtunkhwa Act
No. IV of 1990.---In the Khyber Pakhtunkhwa Finance Act, 1990 (Khyber
Pakhtunkhwa Act No. IV of 1990), in section 7, for the existing Table, the
Table specified in Appendix-II to this Act shall be substituted. 7. Amendment of Khyber Pakhtunkhwa Act
No.1 of 1996.---In
the Khyber Pakhtunkhwa Finance Act, 1996 (Khyber Pakhtunkhwa Act No.1 of 1996),
in section 11, in sub-section (1), for clauses (a), (b) and (c), the following
shall be respectively substituted, namely:
8. Amendment of Khyber Pakhtunkhwa Ord.
No. III of 2000.---In the Khyber Pakhtunkhwa Sales Tax Ordinance, 2000
(Ordinance No. III of 2000),- (i) for section 3, the following shall be
substituted, namely: “3. Scope of tax.---(1) Subject to
the provisions of this Ordinance, there shall be charged, levied and paid a tax
to be known as Provincial Sales Tax on Services, rendered, made, supplied or
provided in the Province of the Khyber Pakhtunkhwa at the rates shown against
each service specified in the Schedule to this Ordinance. (2) Subject to the conditions mentioned in
the Schedule to this Ordinance, the tax shall be charged, levied and recovered
on the services, specified in the Schedule to this Ordinance, at such rate of
the value of the taxable services, in the same manner and at the same time, as
if it were a Sales Tax leviable under sections 3, 3A or 3AA or any other
charging provision as the case may be, of the Sales Tax Act, 1990. (3) Subject
to the conditions mentioned in the Schedule to this Ordinance and rules made,
orders, instructions and notifications issued by the Government of the Khyber
Pakhtunkhwa from time to time, all the provisions of the Sales Tax Act, 1990
shall, mutatis mutandis, apply to the collection and payment of tax under this
Ordinance in so far as they relates to- (a) manner, time and mode of payment; (b)
registration and deregistration; (c)
keeping of records and audit; (d)
enforcement and adjudication; (e)
penalties and prosecution; and (f)
all other allied and ancillary
matters. (4) For
the purpose of this section, the Government of the Khyber Pakhtunkhwa may issue
from time to time such orders, instructions or guidelines and specify
conditions, as it may deem fit.”; (iii)
after section 3, the following
new section shall be added, namely: “4. Power to make rules.---Government of the Khyber Pakhtunkhwa, for the purpose of carrying
into effect the provisions of this Ordinance, may make Rules.”; and (iii) for the existing Schedule, the Schedule
specified in Appendix-III to this Act shall be substituted. 9. Amendment of Khyber Pakhtunkhwa Act
No. VIII of 2010.---In the Khyber Pakhtunkhwa Finance Act, 2010 (Khyber
Pakhtunkhwa Act No. VIII of 2010), in section 2,- (i) for sub-section (2), the following
shall be substituted, namely: “(2) The
rates of tax in respect of immovable properties are as under: (a)
Immovable property other than commercial
property, industrial property and residential flats situated in urban areas
measuring at least 500 square yards or one kanal (whichever is less) and more,-
(b)
Immovable Commercial and Industrial property
of any size situated in an urban area,-
(c)
Commercial immoveable property including
residential flats situated in Plazas or Multi-story buildings of any size
situated in an urban area,-
(ii) after section 10, in the Explanation, after clause (b), the
following new clause shall be inserted, namely: “(bb) “recorded value” means the value declared by the
transferee in the instrument provided that the declared value of landed area
shall not be less than that specified in the valuation table notified by the
District Collector.” APPENDIX-I [See
section 3(iii)] “SCHEDULE-I [See
section 3(2)] PART
‘A’
PART
‘B’ Buildings acquired for the use by
Government, Semi-Government, Non-Governmental Organizations, Development
Financial Institutions, private commercial organizations, guest houses, hostels
or by Banks shall be assessed and taxed twenty percent of the actual annual
rent. In case building other than those exempted under section-4 of the Act,
which are owned and occupied by such organizations, tax shall be levied on the assessed
annual rental value of such buildings on the rate prescribed hereinbefore. PART
‘C’ Tax on properties let out on rent, lease
or other arrangement and not in use of their registered owners will be double
of the above, except for the category-1 (upto 5 marlas). Explanation: Categorization
of area in Provincial Headquarter into Category “A”, “B” or “C” shall be by way
of notification by the Local Government & Rural Development Department, to
be notified from time to time. In
Divisional and District Head Quarters, Townships are approved Townships and
include those areas, which are declared so by Local Government & Rural
Development Department from time to time. Schedule-II [see
section 3(2) 1.
The commercial areas shall be
divided into five localities namely A1, A, B, C and D, depending on the area
and the business being carried therein. 2.
The “A1 and A” localities shall,
for the time being, be defined in Provincial Capital. 3.
The locality factors as worked
out for computing the tax are- (a) For A1 locality. Twelve (located within
100 yards of either sides of the Main road of Peshawar). (b) For A locality. Nine (c) For B locality. Seven (d) For C locality. Five (e) For D locality. Three 4.
The above factors are for the
Provincial Headquarter that is for Peshawar. There shall be a rebate of 30% on
the total tax calculated on the basis of the above factor value in respect of
former Divisional Headquarters and 50% rebate on the total tax so calculated in
respect of all other rating areas. 5.
The tax shall be calculated as
under: a.
area in square yards; b.
covered area in square feet;
provided that open sheds in the commercial units shall be counted as one half
of its total measurements, while calculating the covered area; and c.
(a) + (b) multiplied by the
locality factor. 6.
For educational institutions: a.
the tax shall be calculated on
the basis of covered area only. The area
of the plot as required per item 5(a) above shall not be taken for computing
the tax. This is to encourage the
institutions in providing sports and other recreational facilities to their
students; and b.
the tax calculated on the basis
of (a) above shall get a special thirty per cent rebate, being provided to all
the educational institutions. 7.
Petrol Pumps and CNG Stations
with convenience store shall be charged at flat rate of Rs.10,000/- and those
without store as Rs.5,000/- per annum. 8.
Industrial buildings within the
limits of rating areas shall be assessed for the purpose of this tax at a flat
rate of Rs.2.50 per square foot of the building. The provision of item 5(b) above shall be
applicable to all the industrial area as well. 9.
Buildings acquired for the use as
offices by government, semi-government, non-governmental organizations,
Development Financial Institutions, private commercial organizations, guest
houses, hostels, banks or for the establishment of mobile phone towers/antennas
shall be assessed for the purposes of tax on the basis of twenty percent of the
actual annual rent.”. APPENDIX-II [See
Section 6] “TABLE
APPENDIX – III [See
section 8] “SCHEDULE” [See
Section 3(2)]
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