THE KHYBER PAKHTUNKHWA FINANCE ACT, 2014.

 

(KHYBER PAKHTUNKHWA ACT NO. XXV OF 2014)

 

 

CONTENTS

 

PREAMBLE

 

SECTIONS

 

1.         Short title, extent and commencement.

2.          Amendment of Act No. II of 1899.

3.         Amendment of W.P. Act No. V of 1958.

4.         Amendment of W.P. Ord. No. VIII of 1969.

5.         Amendment of Khyber Pakhtunkhwa Act No. IV of 1990.

6.         Amendment of Khyber Pakhtunkhwa Act No. I of 1995.

7.         Amendment of Khyber Pakhtunkhwa Act No. I of 1996.

8.         Amendment of Khyber Pakhtunkhwa Ordinance No. IV of 2000.

9.         Amendment of Khyber Pakhtunkhwa Act No. VIII of 2010.

10.       Amendment of Khyber Pakhtunkhwa Act No. XXI of 2013.

 

 

THE KHYBER PAKHTUNKHWA FINANCE ACT, 2014.

 

(KHYBER PAKHTUNKHWA ACT NO. XXV OF 2014)

 

[First published after having received the assent of the Governor of

 the Khyber Pakhtunkhwa in the Gazette of Khyber Pakhtunkhwa

(Extraordinary),dated the 2^nd July,2014].

 

AN

ACT

to levy, continue, revise and exempt

certain taxes, fees, cess and duty in the

Province of the Khyber Pakhtunkhwa.

 

            WHEREAS it is expedient to levy, continue, revise and exempt certain taxes, fees, cess and duty in the Province of the Khyber Pakhtunkhwa;

 

It is hereby enacted as follows:

 

1.         Short title, extent and commencement.---(1) This Act may be called the Khyber Pakhtunkhwa Finance Act,  2014.

 

(2)        It shall extend to whole of the Province of the Khyber Pakhtunkhwa.

 

(3)        It shall come into force on the first day of July, 2014.

 

2.         Amendment of Act No. II of 1899.---In the Stamp Act, 1899 (Act No. II of 1899), in Schedule-I,-

 

(a)        against Article No. 4, in column No. 3, for the word “Thirty”, the word “Sixty” shall be substituted;

 

(b)        against Article No. 6(A), in column No. 3, for the figures “100” and “200”, the figures “200” and “400” shall respectively be substituted;

 

(c)        against Article No. 8-A, in column No. 3,-

 

(i)         for the words “One hundred & fifty rupees”, occurring for the second time, the words “One thousand rupees” shall be substituted; and                                          

 

(ii)        for the words “One thousand & five hundred”, the words “Two thousand and five hundred” shall be substituted;

 

(d)       against Article No. 12, in column No. 2 and 3, for the existing entries, the following shall be substituted, in the respective columns, namely:

 

2.	3.
“AWARD,-   (i)         that is to say, any decision in writing by an arbitrator or umpire, not being an award directing a partition, on a reference made otherwise than by an order of the Court in the course of a suit; and   (ii)        directing partition.	The same duty as on a Bond (No. 15), for the amount or value of the property to which the award relates as set forth in such award.           Rs. 50.00 for every kanal or part thereof.”;

 

                        (e)        against Article No. 48,-

 

(i)         in column No. 2, the existing clause (ee) shall be deleted; and

 

(ii)        in column No. 3,-

 

(a)        for the words “Two hundred rupees” and “Two hundred & fifty rupees”, the words “Three  hundred rupees” shall respectively be substituted;

 

(b)        for the words “Seven hundred & fifty rupees”, the words “Nine hundred rupees” shall be substituted; and

 

(c)        the words “One thousand rupees” shall be deleted.

 

3.         Amendment of W.P. Act No. V of 1958.---In the West Pakistan Urban Immoveable Property Tax Act, 1958 (W.P. Act No. V of 1958),-

 

(i)         for the existing Schedule-I, the Schedule specified in Appendix-I to this Act shall be substituted;

 

(ii)        in Schedule-II,-

 

(a)        after entry at S.No. 7, the following new entry shall be inserted, namely;

 

“7(A).  Service Station of vehicles, irrespective of operating in addition to other service such as filling station or otherwise shall be charged at flat rate of Rs.10,000 per annum.”;

 

(b)        in entry at S.No. 9, the words and slash “or for the establishment of mobile phone towers/ antennas” shall be deleted; and

 

(c)        after entry at S.No. 9, as so amended, the following new entry shall be added, namely:

 

“10.     Buildings and Lands used for erection of Mobile      Phone Towers shall be assessed and taxed at the rates:

 

(i)         Provincial Headquarter	…….   Rs.40,000 per annum;
(ii)        Divisional Headquarter and respective sub-urban areas	…….   Rs.30,000 per annum; and
(iii)       District Headquarter and respective sub-urban areas	…….   Rs.20,000 per annum.”.

 

4.         Amendment of W.P. Ord. No. VIII of 1969.---In the West Pakistan Shops and Establishment Ordinance, 1969 (W.P. Ord. No. VIII of 1969), in section 24,-

 

(a)        in sub-section (2), for the words and figures
“Rs. 75.00”, “Rs.100.00”, “Rs.125.00”, and “Rs.150.00”, the words and figures “Rs.200.00”, “Rs.500.00”, “Rs.1000.00” and “Rs.2000.00” shall respectively be substituted; and

 

(b)        in sub-section (6), in clauses (a), (b), (c) and (d), for the words and figures “Rs. 25.00”, “Rs. 50.00”, “Rs.75.00” and “Rs. 100.00”, the words and figures “Rs.200.00”, “Rs. 500.00”, “Rs. 1000.00” and “Rs.2000.00” shall respectively be substituted.

 

5.         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.

 

6.         Amendment of Khyber Pakhtunkhwa Act No. I of 1995.---In the Khyber Pakhtunkhwa Finance Act 1995 (Khyber Pakhtunkhwa Act No I of 1995), in section 6, in sub-section (8), for the words “Five thousand” and “Two thousand”, the words “Six thousand” and “Two thousand and five hundred” shall respectively be substituted.

 

7.         Amendment of Khyber Pakhtunkhwa Act No. I of 1996.---In the Khyber Pakhtunkhwa Finance Act 1996 (Khyber Pakhtunkhwa Act No. I of 1996), in section 11, in sub-section (1), for clauses (a), (b) and (c), the following shall respectively be substituted, namely:

 

“(a)      for virginia (flu-curd, barley and dark-air-cured)	……    Rs. 5.00 per kilogram;
(b)        for white patta/rustica tobacco including khaka and the roth made of main stalk (dandi) and stem of tobacco	……    Rs. 2.50 per kilogram; and
(c)        for snuff/naswar	……    Rs. 2.00 per kilogram.”.

 

8.         Amendment of Khyber Pakhtunkhwa Ordinance No. IV of 2000.---In the Khyber Pakhtunkhwa Land Tax and Agriculture Income Tax Ordinance, 2000 (Khyber Pakhtunkhwa Ordinance No. IV of 2000), for the existing First Schedule and Second Schedule, the Schedules specified in Appendix-III to this Act shall be substituted.

 

9.         Amendment of Khyber Pakhtunkhwa Act No. VIII of 2010.---In Khyber Pakhtunkhwa Finance Act, 2010 (Act No. VIII of 2010),  in section 2, in sub-section (2), for clause (c) the following shall be substituted, namely:

 

“(c)      Commercial Immoveable property including residential flats situated in Plazas or Multi-story buildings of any size situated in an urban area:

 

S.No.	Description of property.	Rate of Tax.
(i)	Where the value of the immovable property is recorded.	2% of the recorded value of the immovable property provided that the amount of tax per Sq-ft of constructed area for floor indicated below shall not be less than:   Rs.8/ per Sq-ft for basement Rs.10/ per Sq-ft for ground floor Rs.8/ per Sq-ft for 1st floor Rs.7.5/ per Sq-ft  for 2nd floor Rs.7/ per Sq-ft for 3rd floor and above.
(ii)	Where the value of the immovable property is not recorded.	The amount of tax per Sq-ft of constructed area for floor indicated below shall be:     Rs.8/ per Sq-ft for basement Rs.10/ per Sq-ft for ground floor Rs.8/ per Sq-ft for 1st floor Rs.7.5/ per Sq-ft  for 2nd floor Rs.7/ per Sq-ft  for 3rd floor and above.”.

 

10.       Amendment of Khyber Pakhtunkhwa Act No. XXI of 2013.---In the  Khyber Pakhtunkhwa Finance Act, 2013 (Khyber Pakhtunkhwa Act No. XXI of 2013), in the First Schedule,-

 

(a)        after the existing entries against Classification No. 9802.5000, the following new Classification No. and Description shall be inserted, in the respective columns, namely:

 

“9802.6000	Advertisements on poles.
9802.7000	Advertisements on billboards.
9802.8000	Sale of Space for Advertisement services.”;

 

(b)        after the existing entries against Classification No. 9802.9000, the following new Classification No. and Description shall be inserted, in the respective columns, namely:

 

“9802.9010	TV, Radio & Production Services.
9802.9020	Broadcasting Services.”;

(c)        for the existing entry in Description column against Classification No. 9814.2000, the following shall be substituted, namely:

“Contracting services rendered by the contractors of buildings, electro-mechanical works, turn-key projects and similar other works, excluding individual house construction contracts.”;

 

(d)       after the existing entries against Classification No. 9815.6000, the following new Classification No. and Description shall be inserted, in the respective columns, namely:

 

“9815.7000

Cosmetic and Plastic Surgery Services.”;

(e)        after the existing entries against Classification No. 9819.8000, the following new Classification No. and Description shall be inserted, in the respective columns, namely:

 

“9819.8700

Video Tape and Production Services.”;

(f)        after the existing entries against Classification No. 9819.9500, the following new Classification No. and Description shall be inserted, in the respective columns, namely:

 

“9819.9600	Copy Right Services.;
9819.9800	Sound Record Service.”;

(g)        after the existing entries against Classification No. 9820.4000, the following new Classification No. and Description shall be inserted, in the respective columns, namely:

 

“9820.5000

Services provided by motor vehicle workshops, mechanic shops, air conditioning fitting service and cleaning centres.”; and

(h)        after the existing entries against Classification No. 9868.0000, the following new Classification No. and Description shall be added, in the respective columns, namely:

 

“9869.0000	Container terminal services.
9870.0000	Manpower recruitment and labour supply services.
9871.0000	Port operating services.
9872.0000	Public Bonded Warehouse.
9873.0000	Services provided in respect of mining of minerals, oil and gas including related surveys and allied activities.
9874.0000	Event Management Services.”.

Appendix-I

[Section 3]

 

“Schedule-I

[See Section 3(2)]

PART ‘A’

 

PART ‘B’

Building acquired for the use by Government, Semi-Government, Non Government 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 Headquarters, Townships are approved Townships and include those areas, which are declared so by Local Government & Rural Development Department from time to time.”.