The Sindh Finance Bill, 2024
The Sindh Finance Bill, 2024
The Sindh Finance Bill, 2024
BILL
to rationalize, levy and enhance certain taxes and duties in the Province
of Sindh and to amend certain laws in the Province of Sindh;
WHEREAS it is expedient to rationalize, levy and enhance certain Preamble.
taxes and duties in the Province of Sindh and to amend certain laws in the
Province of Sindh, in the manner hereinafter appearing;
It is hereby enacted as follows:-
1. (1) This Act may be called the Sindh Finance Act, 2024. Short title and
commencement.
(2) It shall come into force on and from 1st day of July, 2024.
2. In the Stamp Act, 1899, in its application to the Province of Sindh – Amendment of
Sindh Act No. II of
(i) for Article 1, the following shall be substituted:- 1899.
(a) in Sub-Article (A), for clauses (i) and (ii), the following shall be
substituted:-
“(i) To and from Real Estate At the rate of two percent
Investment Trusts (REITs) of the value in the
valuation table or declared
value recorded in the
instrument whichever is
higher
(ii) In any other case Same duty as leviable on
the Conveyance under
Article No.16(A)(i)”
(b) for Sub-Article (B), the following shall be substituted:-
(B) Transfer of lease by way of Same duty as leviable on
assignment the Conveyance under
Article No.16(A)(i)”;
(xi) in Article 17, in column 2, for the words “Five Hundred”, the words
“One Thousand” shall be substituted;
(xii) in Article 19, after the word “mark-up basis”, the words “or interest
basis” shall be inserted;
(xiii) in Article 21, in Sub-Article (i),(ii) and (iv), in column 2 thereof, for
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the words “At the rate of one percent of value in the valuation table or
at the floating rate charged on the actual value”, the words “Same duty
as leviable on Conveyance under Article No.16-A(i)” shall be
substituted and in Sub-Article (iii) in column 2 thereof, for the figure
“1.5% of the total rent due for the entire period of lease/ license/
agreement”, the words “one percent of the total rent due for the entire
period of lease/ license/ agreement subject to a minimum of five
hundred rupees” shall be substituted;
(xiv) in Article 22, in clauses (a), (b) and (c), in column 2 thereof, for the
word “Two”, “Four” and “One”, the word “Five”, “Eight” and” Two”,
shall respectively be substituted;
(xv) in Article 23 –
(a) in clauses (a) and (b), in column 2 thereof, for the figure and words
“3 percent of the amount secured by such deed” and “2 percent of
the amount secured by such deed”, the words “Same duty as
leviable on Financing Document under Article No.19” shall
respectively be substituted; and
(xvii) in Article 24, in column 2, for the word “Five rupees”, the words “five
hundred rupees” shall be substituted;
(xviii) after Article 24, the following new Article 24-A shall be inserted :-
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Crops, and other Property
Against Loss or Damage
C. Life Insurance Health 0.15 percent on the sum
Insurance or other Insurance not insured subject to a
Specially Provided for except minimum of five
such Re-Insurance as is hundred rupees
described in the Division of this
article
D. If not otherwise provided for Five Hundred rupees.”;
(xxi) in Article 28, in clause (a), in sub-clauses (i) and (ii), in column 2, for
the words “Five hundred rupees” and “One thousand rupees”, the
words “One thousand rupees’ and ‘’Two Thousand Rupees’’ shall
respectively be substituted; and in clause (b), in column 2, after the
word “otherwise than on demand”, the words “subject to a minimum of
five hundred rupees” shall be added;
(xxii) in Article 29, in column 2, for the words “At the rate of one percent of
value in the valuation table or at the floating rate charged on the actual
value”, the words “Same duty as leviable on the Conveyance under
Article 16 (A)(i)” shall be substituted;
(xxiii) in Article 30, in Sub-Article (A), in clause (ii), in column 2, for the
words “At the rate of one percent of value in the valuation table or at
the floating rate charged on the actual value”, the words “Same duty as
leviable on the Conveyance under Article 16(A)(i)” shall be
substituted; and
(xxiv) in Article 32, in clause (i), in column 2, for the words “At the rate of
one percent of value in the valuation table or at the floating rate
charged on the actual value”, the words “Same duty as leviable on the
Conveyance under Article 16 (A)(i)” shall be substituted;
(xxv) after Article 32, the Explanation and the proviso thereunder shall be
omitted.
3. In the Sindh Motor Vehicles Taxation Act, 1958, in section 3, in sub- Amendment of
section (1), in the third proviso, in clause (ii), the table thereunder shall be section 3 of West
substituted with the following table:- Pakistan Act No.
“TABLE XXXII of 1958.
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01 Imported Motor Car/Jeeps etc. with Rs.450,000/-
engine capacity 3000cc and above
02 Imported Motor Car/Jeeps etc. with Rs.275,000/-
engine capacity 2000cc to 2999cc
03 Imported Motor Car/Jeeps etc. with Rs.100,000/-
engine capacity 1500cc to 1999cc
04 Locally manufactured or assembled Motor Rs.50,000/-
Car/Jeeps etc. with engine capacity
2000cc and above
05 Locally manufactured or assembled Motor Rs.25000/-
Car/Jeeps etc. with engine capacity
1500cc to 1999cc.
4. In the Sindh Finance Act, 1964, in the Seventh Schedule, for entries at Sr. Amendment of
No.1, 4 and 5, the following shall respectively be substituted: - Seventh Schedule
of Sindh Act XXIV
“S.NO. CATEGORY RATE OF TAX of 1964
PER ANNUM
1. All Persons assessed to Income Tax. All Rs.2,000/-
persons engaged in any professional, trade
calling or employment, other than those
mentioned hereinafter and assessed to in the
preceding financial year
4. All factories, shops, or establishments, Rs.2,000/-
including Video shops, real estate, shops /
agencies, and car dealer not assessed to
income tax in the preceding financial year
5. All Petrol Pumps & CNG Stations. Rs.20,000/-
(i) after clause (59), the following new clause shall be inserted:-
(n) in clause (72B), in sub-clause (iii), for the words “solely used for
outdoor games and sports”, the words “used or to be used for such
games and sports which are otherwise liable to tax under tariff
heading 9821.2000;”;
(o) after clause (87), the following new clause (87A) shall be inserted:-
(p) in clause (91), after the words “the services of”, the words “any
kind of specialized or special purpose survey, geological or
geophysical survey, surface or sub-surface survey, survey for
exploration of minerals,” shall be inserted;
(q) in clause (94) in sub-clause (g), for the word “months”, the words
“tax periods” shall be substituted; and
(r) in clause (98CC), for the words “with the business enterprises”, the
words “with the persons including business enterprises”;
(i) after the words “to an employer”, the words “with whom he is in
direct relationship under a contract of employment” shall be
added; and
(ii) in the proviso, the semi-colon and the word “or”, shall be replaced
by a colon and, thereafter, the following second proviso shall be
added:-
(a) for the words “in the economic activity of”, the word “by” shall
be substituted; and
(b) for the word “thirteen”, the word “fifteen” shall be substituted;
(ii) in clause (j), for the word “thirteen”, the word “fifteen” shall be
substituted;
(iii) in clause (jj),------
(b) the colon at the end shall be replaced by a semi-colon and the
proviso thereunder shall be omitted; and
(iv)in clause (k), the semi-colon at the end shall be replaced by a colon
and, thereafter, the following proviso shall be inserted:-
“Provided that in case of telecommunication services paying
sales tax at a rate not less than nineteen and a half per cent ad
valorem, the amount of sales tax paid on goods and services at ad
valorem rates not exceeding eighteen per cent, can be claimed by
the person providing the taxable telecommunication services;”;
(v) in section 23, in sub-section (2), after the words “order relates”, the
words and figures “for the tax periods ending on 30th June, 2025, or
earlier, and within a period of five years from the end of the financial
year to which the order relates for the tax periods starting on 1 st July,
2025 or thereafter,” shall be inserted;
(vi) in section 25, for sub-section (1), the following shall be substituted:-
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“(1) Subject to sub-section (3), the Board or any officer of the SRB,
authorized by the Board in this behalf, may suspend the registration of a
person if there is reason to believe that the person -
(i) is not entitled to be registered; or
(ii) has failed to comply with its obligations under this Act.”;
(ix) in section 27, in sub-section (1), after the words “documents relate”, the
words and figures “for the tax periods ending on 30th June, 2025, or
earlier, and six years from the end of the financial year to which such
records or documents relate for the tax periods starting on 1 st July, 2025
or thereafter” shall be inserted;
(a) for Sr. No. 2B, in column (1) and the entries relating thereto in
column (2), the following shall be substituted:-
(b) after Sr. No. 2B and the entries relating thereto in columns (1) and
(2), substituted as above, the following shall be inserted:-
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“ 2C. Where a person avoids, Such person shall be General
defies, delays or fails to liable to a penalty of
deposit the amount of rupees one hundred
service fee levied under the thousand or twice the
Sindh Sales Tax Special amount of service fee
Procedure (Online involved, whichever is
Integration of Business) higher.
Rules, 2022 or fails to report Such person shall
the service fee in the sales further be liable, upon
tax return in the prescribed conviction by the
manner. Special Judge, to
imprisonment which
may extend to one
year or with fine
which may extend to
one hundred thousand ”;
rupees, or with both.
(c) Sr. No. 7B in column (1) and the entries relating thereto in
columns (2) and (3) shall be omitted; and
(d) in column (1) against Sr. No. 14, in column (2) -
(i) for the words “shall pay”, the words “shall be liable to pay”
shall be substituted; and
(ii) after the words “sales tax revenue”, occurring for the first time,
the comma and words “, whichever is higher” shall be inserted;
(xi)in section 47 -
(a) in sub-section (1), after the words and comma “relevant date,”, the
words “provided that where the relevant date is prior to 1st July,
2025, and within a period of five years from the end of the
financial year in which the relevant date falls, provided that such
date is 1st July, 2025 or thereafter,” shall be inserted; and
(b) in sub-section (4), for the word “petitioner”, the word “person”
shall be substituted and shall be deemed to have always been
substituted;
(xii) in section 58, in sub-section (4), for the word “twenty”, the word
“eighty” shall be substituted;
(xiii) in section 60 -
(a) sub-section (5) shall be omitted; and
(b) in sub-section (11), for the word “five”, the word “one” shall be
substituted;
(xiv) in section 66, in sub-section (1), in the first proviso, for the words
“twenty-five”, the word “ten” shall be substituted;
(xv) in section 73, in sub-section (4), the full-stop at the end shall be
replaced by a colon and, thereafter, the following proviso shall be
added:-
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“Provided that the Board may make arrangement or agreement,
on reciprocal or multilateral basis with the Federal Board of Revenue
and other provincial sales tax authorities, for sharing of electronic data
of tax returns filed in the computerized system, subject to such
limitations and conditions as may be specified by the Board and agreed
to in such agreements.”;
(xvi) in section 82, in sub-section (2), for the words “any public servant”, the
words “the Board or any officer of the Board or against any public
servant” shall be substituted;
(a) in column (3), for the figure “13%”, wherever occurring, the figure
“15%” shall be substituted;
(b) against tariff heading “98.01” in column (1), after the words “guest
houses” in column (2), the commas and word “, farmhouses,” shall
be inserted;
(c) against tariff heading 9801.1000 in column (1), for the words “and
guest houses” in column (2), the comma and words “, guest houses
and farmhouses” shall be substituted;
(d) against tariff heading 9801.6000 in column (1), for the words
“guest houses” in column (2), the words and commas “guest
houses, farmhouses,” shall be substituted;
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(e) after tariff heading “98.15” in column (1) and the entries relating
thereto in columns (2) and (3), the following shall be inserted:-
”;
(f) against the tariff heading “9821.2000” in column (1), for the words
“Indoor sports” in column (2), the word “Sports” shall be
substituted;
(g) against the tariff heading “9836.0000” in column (1), the words
“inter-city” in column (2), shall be omitted;
(h) against the tariff heading “9853.0000” in column (1), after the
word “Vehicle” in column (2), the words and comma “towing,
vehicle” shall be inserted; and
(i) after tariff heading “9856.0000” in column (1) and the entries
relating thereto in columns (2) and (3), the following shall be
inserted:-
“ 9857.0000 Education services 15%
9858.0000 Services provided or 15%
rendered by hospitals
and clinics
9859.0000 Pet care services 15%
”.
Explanation: For the purpose of the Schedule, the “value” means the 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.”.
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.
MEMBER-IN-CHARGE
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