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Fictitious routing of goods through the areas which have exemptions or special tax treatments has been noticed by some persons. For the sake of discouraging this activity, a new provision has been added.
The provision stipulates that:
Document in respect of goods supplied from tax-exempt areas should be accompanied to a conveyance carrying such goods.
For the examination of goods and the related documents, the Regional Tax Office has the jurisdiction so that it may establish check-posts, on the routes being originated from tax-exempt areas.
An officer under proper acknowledgment shall seize the goods along with the vehicle carrying those goods, in case, the prescribed documents are absent, or there is any discrepancy in the documents.
Within Fifteen days of the seizure of goods and vehicle, a show-cause notice shall be issued to the owner for the imposition of penalty.
In the light of this provision, the expression Tax-exempt areas refer to Azad Jammu and Kashmir,Gilgit-Baltistan, Tribal areas as defined in Article 246 of the Constitution of Islamic Republic of Pakistan and such areas as may be prescribed.
Government of Punjab has announced a Tax relief Package for the sectors being affected by COVID-19:
On all online platforms, GST has been cut off to zero percent now.
Urban immovable property tax and infrastructure development Cess has been postponed.
For property transactions, the CVT tax rate and Stamp Duty have been reduced to 2%.
HR development-related businesses and services are rated at Zero now. Businesses are also inclusive of those that are closed in order to get the cost of resuming activity reduced.
GST has been suspended on the services being provided by Hospitals and Medical consultants.
GST has also been suspended on Construction services.
This tax relief package has a value of Rupees 18 Billion.
On25th March 2020, the Federal Board of Revenue issued a notice regarding the Office timings amid threat of COVID-19. The Establishment Division’s Notification NO. 6/1/2002-D-2 clarified the following timings for FBR and all its field formations as a part of the measures to contain the spread of COVID-19 (Corona Virus):
Monday to Thursday (10:00 am to 04:00 pm)
Fridays (10:00 am to 01:00 pm)
The timings shall have an immediate effect and shall remain in force till Tuesday, 7th April 2020, in case of no modification and withdrawal.
There has been an amendment in Section 73 of the Sales Tax Act 1990. The amendment mentions that a registered manufacturer shall be making all taxable supplies to a registered person having obtained the registration under the Act. The supplies should exclude all such supplies which do not exceed a value of rupees hundred million in a financial yearand rupees 10 million in a month. Any person failing to comply with this amendment in the rule, shall not be entitled to credit adjustment or deduction of the input tax as attributable to such excess supplies to unregistered persons.
The conditions and clarifications have been issued vide STGO 01 of 2020 dated as at January 16, 2020.
The provisions of sub-section (4) of section 73 shall not apply to supplies made to:
Departments, authorities of federal/provincial/local Government which are not engaged in the taxable supplies making.
Privileged persons, diplomats, and Foreign Missions.
And also including all such other persons who are not engaged in the supply of taxable goods.
It is also clarified that the value of supply of taxable goods (100 million per year or 10 million per month) is only applicable to one specific person getting the goods supplied by the registered persons.
A summary was forwarded to the Economic Coordination Committee (ECC) of the cabinet for approval. The summary briefed the Special Relief Package for Five Export Sectors (Zero-rated industrial consumers). ECC considered the above summary in the cabinet meeting held on the 11th of March 2020 and gave approval to proposals contained in Para 9 of the summary.
Relevant paras of the summary and decision of ECC are as under:
Para 9 of the summary submitted to ECC of the Cabinet on11-03-2020:
Given the cautioned litigation and position of Five export sectors, the commitment to them, was a fixed all-inclusive US cents of 7.5 per unit (kWh) plus taxes, the following recommendations have been submitted for considerations of the ECC of the cabinet;
With effect from 01.01.2019 to 30.06.2020, electricity would be provided to the Five export sectors at an all-inclusive rate US cents of 7.5 per unit (kWh) plus applicable taxes.
From January 2019 to date, electricity bills issued and included Surcharges, Quarterly adjustments, fuel price adjustments, FCC and NJS will be adjusted to a fixed tariff of US cents of 7.5 per unit (kWh). In addition, Taxes for the period would also be paid by the consumers.
A subsidy for the financial year 2019-2020 will be paid by the finance division to power division. 24 billion rupeesallocated for the budget for the Gas sector would be used to pay 14 billion out of the 23 billion rupees of subsidy to the power sector. Remaining 9 billion rupeeswould be funded through savings from various heads or PSDP savings
The subsidy of 24 billion rupees to the gas sector would be reduced to 17 billion rupees by re-allocation. This subsidy would be made up of various heads of PSDP savings subject to availability at the end of the year. For the next financial year, the same subsidy of 24 billion would continue.
Additional subsidy of 20 billion rupees will be capped for the continuation of relief package in the nest financial year 2020-21.
Decision (No. ECC-80/09/2020) of ECC of the cabinet- Dated 11.03.2020:
The summary sent to ECC of the cabinet on 11.03.2020by the Power division regarding Special relief package for five export sectors (zero-rated industrial consumers) has been considered by the ECCof the cabinet. Approval for the proposals contained in Para 9 of the Summary has been made.
