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 5^th 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 1^st 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:

 

 

 

 

 

 

 

 

 

 

 

 

1	2	3
“1. Plaint, written statement pleading a set-off or  counter-claim or memorandum of appeal (not otherwise provided for in this Act) or cross-objection presented to any Civil or Revenue Court including applications, appeals and revisions before revenue appellant or revisional authorities; except those mentioned in section 3.	..	Seven-and-a half percent (7.5%) on the amount or value of the subject matter in dispute, subject to a minimum of five hundred rupees and a maximum of fifteen thousand rupees (irrespective of value of relief claimed).”; and

 

(ii)        the existing “Table of rates of
ad valorem fees leviable on the institution of suits” appearing at the end of Schedule-I shall be deleted.

 

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 1^st 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

S.No.	Motor vehicle type/ Engine Capacity of vehicle	Where the default does not exceed 6 months (Rs.)	Where the default exceeds 6 months (Rs.)
1.	2.	3.	4.
(i)	Motor Cycle/scooter	200	500
(ii)	Tractor not being used for agricultural purposes	1000	2000
(iii)	Other vehicles up to 800 CC	1000	2000
(iv)	801-1000 CC	1500	3000
(v)	1001 – 1300 CC	1700	3400
(vi)	1301-2000 CC	2000	5000
(vii)	Above 2000 CC	5000	10000.”

 

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:

 

“(a)	for virginia (flu-cured, barley and dark-air- cured);	Rs.2.50/- per kilogram
(b)	for white patta/rustica tobacco including khaka, kara and the roth made of main stalk (dandi) and stem of tobacco; and	Rs.1.25/- per kilogram
(c)	for snuff/naswar.	Rs.1.00/- per kilogram.”.

 

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,-

                                                                                                                            

 

 

No.	Description of immovable property.	Rate of Tax.
(i)	Where the value of the immovable property is recorded.	Two percent of the recorded value of the landed area.
(ii)	Where the value of the immovable property is not recorded.	Twenty five rupees per square foot of the landed area.
(iii)	Where the immoveable property is a constructed property.	Ten rupees per square foot of the constructed area in addition to the value worked out above.

 

(b)               Immovable Commercial and Industrial property of any size situated in an urban area,-

No.	Description of Immoveable property.	Rate of Tax
(i)	Where the value of the immovable property is recorded.	Two percent of the recorded value of the landed area.
(ii)	Where the value of the immovable property is not recorded.	Twenty five rupees per square foot of the landed area.
(iii)	Where the immoveable property is a constructed property.	Ten rupees per square foot of the constructed area in addition to the value worked out above.

 

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

 

No.	Description of Immoveable property.	Rate of Tax
(i)	Where the value of the immovable property is recorded.	Two percent of the recorded value of the immoveable property provided that the amount of tax shall not be less than ten rupees per square foot of the constructed area.
(ii)	Where the value of the immovable property is not recorded.	Ten rupees per square foot of the constructed area.”; and

 

(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.