Second Schedule: Second Schedule

THE SECOND SCHEDULE EXEMPTIONS AND TAX CONCESSIONS [See section 53] PART I EXEMPTIONS FROM TOTAL INCOME Incomes, or classes of income, or persons or classes of persons, enumerated below, shall be exempt from tax, subject to the conditions and to the extent specified hereunder: 1[ ] 2[ ] (3) Any income chargeable under the head "Salary" received by a person who, not being a citizen of Pakistan, is engaged as an expert or technical, professional, scientific advisor or consultant or senior management staff by institutions of the Agha Khan Development Network, (Pakistan) listed in Schedule I of the Accord and Protocol dated, November 13, 1994 executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network. 3[ ] 4[ ] 5[(5A) Any allowance or perquisite paid or allowed as such outside Pakistan by the Government to a citizen of Pakistan for rendering service outside Pakistan.] 1 Clause (1) omitted by the Finance Act, 2003. The omitted clause (1) read as follows: “(1) Any income chargeable under the head "Salary" received by any person being an employee of the International Irrigation Management Institute (IIMI) in Pakistan, who is neither a citizen of Pakistan nor a resident individual in any of the four years immediately preceding the year in which he arrived in Pakistan.” 2 Clause (2) omitted by the Finance Act, 2008. The omitted clause (2) read as follows: “(2) Any income chargeable under the head "Salary" received by, or due to, any person, not being a citizen of Pakistan or a resident individual, as remuneration for services rendered by him as a health professional under the contract of service concluded with Shaukat Khanum Memorial Hospital and Research Center, Lahore, and approved by the Federal Government for the purposes of this clause.” 3 Clause (4) omitted by the Finance Act, 2021. The omitted clause read as follows: “(4) Any income chargeable under the head “Salary” received by- (a) a Pakistani seafarer, working on Pakistan flag vessels for one hundred and eighty three days or more during a tax year; or (b) a Pakistani seafarer working on a foreign vessel provided that such income is remitted to Pakistan, not later than two months of the relevant 3[tax year], through normal banking channels.” 4 Clause (5) omitted by the Finance Act, 2022. The omitted clause read as follows: “(5) Any allowance or perquisite paid or allowed as such outside Pakistan by the Government to a citizen of Pakistan for rendering service outside Pakistan.” 5 Clause (5A) inserted and deemed to have been so inserted from the 1st day of July, 2022 by the Tax Laws (Amendment) Act, 2023 (XVI of 2023) dated 20.04.2023. Earlier this clause was inserted through Tax Laws (Second Amendment) Ordinance, 2022 (VI of 2022) dated 22.08.2022. 533 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[(9) Any pension – 5[ ] (ii) granted under the relevant rules to the families and dependents of public servants or members of the Armed Forces of Pakistan who die during service.] 6[ ] 7[ ] (12) Any payment in the nature of commutation of pension received from Government or under any pension scheme approved by the 8[Board] for the purpose of this clause. (13) Any income representing any payment received by way of gratuity or commutation of pension by an employee on his retirement or, in the event of his death, by his heirs as does not exceed – 1 Clause (6) omitted by the Finance Act, 2008. The omitted clause (6) read as follows: “(6) Any income chargeable under the head “Salary” received by a person, not being a citizen of Pakistan, by virtue of his employment with the British Council.” 2 Clause (7) omitted by the Finance Act, 2002. The omitted clause (7) read as follows: “(7) Any income chargeable under the head "Salary" paid by Government to Khasadars, levies and Badraggas employed in the tribal territory on the North West Frontier and of all persons employed in the tribal levy services in Baluchistan.” 3 Clause (8) omitted by the Finance Act 2025. The omitted clause read as follows: “ (8) Any pension received by a citizen of Pakistan from a former employer, other than where the person continues to work for the employer (or an associate of the employer). Provided that where the person receives more than one such pension, the exemption applies only to the higher of the pensions received.” 4 Clause (9) substituted by the Finance Act, 2006. The substituted clause (9) read as follows: “(9) Any pension received in respect of any service rendered by a member of the Armed Forces of Pakistan or as an employee of the Federal Government or a Provincial Government.“ 5 Sub-clause (i) omitted by the Finance Act 2025. The omitted sub-clause read as follows: “ (i) received in respect of services rendered by a member of the Armed Forces of Pakistan or Federal Government or a Provincial Government;” 6 Clause (10) omitted by the Finance Act, 2006. The omitted clause (10) read as follows: “(10) Any pension granted to any public servant to whom clause (14) does not apply in respect of injuries received in the performance of his duties.” 7 Clause (11) omitted by the Finance Act, 2006. The omitted clause (11) read as follows: “(11) Any pension granted to any public servant to whom clause (15) does not apply who has been invalidated from service on account of any bodily disability.” 8 The words “Central Board of Revenue” substituted by the Finance Act, 2007. 556 Second Schedule – Part-I_____ __________________________ (i) in the case of an employee of the Government, a 1[Local Government], a statutory body or corporation established by any law for the time being in force, the amount receivable in accordance with the rules and conditions of the employee’s services; (ii) any amount receivable from any gratuity fund approved by the Commissioner in accordance with the rules in Part III of the Sixth Schedule; (iii) in the case of any other employee, the amount not exceeding 2[three] hundred thousand rupees receivable under any scheme applicable to all employees of the employer and approved by the 3[Board] for the purposes of this sub-clause; and (iv) in the case of any employee to whom sub-clause (i), (ii) and (iii) do not apply, fifty per cent of the amount receivable or seventy-five thousand rupees, whichever is the less: Provided that nothing in this sub-clause shall apply – (a) to any payment which is not received in Pakistan; (b) to any payment received from a company by a director of such company who is not a regular employee of such company; (c) to any payment received by an employee who is not a resident individual; and to any gratuity received by an employee who has already received any gratuity from the same or any other employer. 4[ ] 5[ ] (16) Any income derived by the families and dependents of the "Shaheeds" belonging to Pakistan Armed Forces from the special family pension, dependents pension or children's allowance granted under the provisions of the Joint Services Instruction No. 5/66. 1 The words “local authority” substituted by the Finance Act, 2008. 2 The word “two” substituted by the Finance Act, 2016. 3 The words “Central Board of Revenue” substituted by the Finance Act, 2007. 4 Clause (14) omitted by the Finance Act, 2006. The omitted clause (14) read as follows: “(14) Any pension granted to the personnel of Armed Forces of Pakistan (including personnel of the Territorial Force and the National Service of Pakistan) in respect of injuries received in the performance of their duties as such.” 5 Clause (15) omitted by the Finance Act, 2006. The omitted clause (15) read as follows: “(15) Any pension granted to the personnel of the Armed Forces of Pakistan (including personnel of the Territorial Force and the National Service of Pakistan) invalidated from service with such Forces on account of bodily disability attributable to, or aggravated by, such service.” 557 Second Schedule – Part-I_____ __________________________ (17) Any income derived by the families and dependents of the "Shaheeds" belonging to the Civil Armed Forces of Pakistan to whom the provisions of the Joint Services Instruction No. 5/66 would have applied had they belonged to the Pakistan Armed Forces from any like payment made to them. 1[ ] (19) Any sum representing encashment of leave preparatory to retirement of a member of the Armed Forces of Pakistan or an employee of the Federal Government or a Provincial Government. 2[ ] 3[ ] (22) Any payment from a provident fund to which the Provident Funds Act, 1925 (XIX of 1925) applies. (23) The accumulated balance due and becoming payable to an employee participating in a recognized provident fund. 4[(23A) the accumulated balance upto 5[50]% received from the voluntary pension system offered by a pension fund manager under the Voluntary Pension System Rules, 2005 at the time of eligible person’s- (a) retirement; or (b) disability rendering him unable to work; or (c) death by his nominated survivors6[:] Provided that, excluding the cases mentioned in sub-clauses (b) and (c), in case of withdrawal before retirement age or withdrawal at the time of or after retirement age in excess of fifty percent of the accumulated balance, tax shall be 1 Clause (18) omitted by the Finance Act, 2006. The omitted clause (18) read as follows: “(18) Any pensions granted under the relevant rules to the families and dependents of public servants or members of the Armed Forces of Pakistan who die during service.“ 2 Clause (20) omitted by the Finance Act, 2015. The omitted clause (20) read as follows:- “(20) Any income received by a person from an annuity issued under the Pakistan Postal Annuity Certificate Scheme on or after the 27th July, 1977, not exceeding ten thousand rupees per annum.” 3 Clause (21) omitted by the Finance Act, 2008. The omitted clause (21) read as follows: “(21) Any income received by a person from an annuity or annuities issued upto 30th June, 2005 by the State Life Insurance Corporation of Pakistan or a life insurance company registered under section 3 of the Insurance Ordinance, 2000 (XXXIX of 2000): Provided that this clause shall not apply to so much of the income received by a person from an annuity or annuities which, together with the income from any annuity or annuities referred to in clause (20), exceeds ten thousand rupees per annum.” 4 Inserted by the Finance Act, 2006. 5 The figure “25” substituted by the Finance Act, 2009. 6 The full stop substituted by colon and thereafter new proviso added through Finance Act, 2020 dated 30th June, 2020 558 Second Schedule – Part-I_____ __________________________ charged at the rate specified in sub-section (6) of section 12 and the pension fund manager shall at the time of making payment deduct tax at the said rate.] 1[ ] 2[ ] 3[(23C) Any withdrawal of accumulated balance from approved pension fund that represent the transfer of balance of approved provident fund to the said approved pension fund under the Voluntary Pension System Rules , 2005.] (24) Any benevolent grant paid from the Benevolent Fund to the employees or members of their families in accordance with the provisions of the Central Employee Benevolent Fund and Group Insurance Act, 1969. (25) Any payment from an approved superannuation fund made on the death of a beneficiary or in lieu of or in commutation of any annuity, or by way of refund of contribution on the death of a beneficiary 4[.] 5[ ] 6[ ] 7[ ] 1 Inserted by the Finance Act, 2012. 2 Clause (23B) omitted by the Finance Act, 2022. The omitted clause read as follows: “(23B) The amounts received as monthly installment from an income payment plan invested out of the accumulated balance of an individual pension accounts with a pension fund manager or an approved annuity plan or another individual pension account of eligible person or the survivors pension account maintained with any other pension fund manager as specified in the Voluntary Pension System Rules 2005 shall be exempt from tax provided accumulated balance is invested for a period of ten years: Provided that where any amount is exempted under this clause and subsequently it is discovered, on the basis of documents or otherwise, by the Commissioner that any of the conditions specified in this clause were not fulfilled, the exemption originally allowed shall be deemed to have been wrongly allowed and the Commissioner may, notwithstanding anything contained in this Ordinance, re-compute the tax payable by the taxpayer for the relevant years and the provisions of this Ordinance shall, so far as may be, apply accordingly.” 3 Inserted by the Finance Act, 2012. 4 Added by the Finance Act, 2008. 5 Sub-clause (i) omitted by the Finance Act, 2008. The omitted sub-clause (i) read as follows: “ (i) in the case of an employee of the Government or a local authority or a statutory body or corporation established by any law for the time being in force, the amount receivable in accordance with the rules and conditions of his service;” 6 Sub-clause (ii) omitted by the Finance Act, 2008. The omitted sub-clause (ii) read as follows: “(ii) any amount receivable from any gratuity fund approved by the Commissioner in accordance with the rules contained in Part III of the Sixth Schedule; 7 Sub-clause (iii) omitted by the Finance Act, 2008. The omitted sub-clause (iii) read as follows: “(iii) in the case of any other employee, the amount not exceeding two hundred thousand rupees receivable under any scheme applicable to all employees of the employer and approved by the Central Board of Revenue for the purposes of this sub-clause; and 559 Second Schedule – Part-I_____ __________________________ 1[ ] (26) Any income of a person representing the sums received by him as a worker from out of the Workers Participation Fund established under the Companies Profits (Workers Participation) Act, 1968 (XII of 1968). 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 1 Sub-clause (iv) omitted by the Finance Act, 2008. The omitted sub-clause (iii) read as follows: “(iv) in the case of any employee to whom sub-clauses (i), (ii) and (iii) do not apply, fifty per cent of the amount receivable or seventy-five thousand rupees, whichever is the less: Provided that nothing in this sub-clause shall apply- (a) to any payment which is not received in Pakistan ; (b) to any payment received from a company by a director of such company who is not regular employee of such company; (c) to any payment received by an employee who is not a resident of Pakistan; and (d) to any gratuity received by an employee who has already received any gratuity from the same or any other employer.” 2 Clause (28) omitted by the Finance Act, 2002. The omitted clause (28) read as follows: “(28) Any income of an officer representing the sum received by him as Entertainment Allowance admissible to him under the Ministry of Finance (Finance Division) Office Memorandum No. F.1 (1)- Imp/83, dated the 18th August, 1983.” 3 Clause (29) omitted by the Finance Act, 2002. The omitted clause (29) read as follows: “(29) Any income of an officer of the Pakistan Armed Forces representing the sum received as Entertainment Allowance admissible to him under the Ministry of Defence Office Memorandum No. 716(D)/(B)/77, dated the 29th April, 1977.” 4 Clause (30) omitted by the Finance Act, 2002. The omitted clause (30) read as follows: “(30) Any income of an officer representing the sum received by him as Entertainment Allowance admissible to him under the Cabinet Secretariat (Establishment Division) Office Memorandum No. 18/2/78-CV, dated the 13th July, 1978.” 5 Clause (31) omitted by the Finance Act, 2002. The omitted clause (31) read as follows: “(31) Any income of an officer representing the sum received by him as Senior Post Allowance admissible to him under the Ministry of Finance, Planning and Development (Finance Division) Office Memorandum No. F.1(36) Gaz-IMP-I/73, dated the 18th August, 1973.” 6 Clause (32) omitted by the Finance Act, 2002. The omitted clause (32) read as follows: “(32) Any income of an officer representing the sum received by him as Senior Post Allowance admissible to him under the Ministry of Finance and Provincial Coordination (Finance Division) Office Memorandum No. F.1(1) Imp-I/77, dated the 28th April, 1977.” 7 Clause (33) omitted by the Finance At, 2003. The omitted clause (33) read as follows: “(33) Any income of any officer representing the sum received by him as Orderly Allowance admissible to him under the Finance Division O.M. No. F.1(3)-IMP-II/85, dated the 24th October, 1985.” 560 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[(39A) Any amount paid as8[,internal security allowance, compensation in lieu of bearer allowance,] kit allowance, ration allowance, special messing allowance, SSG allowance, Northern Areas compensatory allowance, special pay for Northern Areas and height allowance to the Armed Forces personnel.] (40) Any income of a newspaper employee representing Local Travelling Allowance paid in accordance with the decision of the Third Wage Board for Newspaper Employees constituted under the Newspaper Employees (Conditions of Service) Act, 1973, published in Part II of the Gazette of Pakistan, Extraordinary, dated the 28th June, 1980. 9[ ] 1 Clause (34) omitted by the Finance At, 2003. The omitted clause (34) read as follows: “(34) Any income of an employee of a recognized University in Pakistan representing the sums received by him as Orderly Allowance admissible under the terms and conditions of his service.” 2 Clause (35) omitted by the Finance Act, 2014. The omitted clause read as follows: “(35) Any income representing compensatory allowance payable to a citizen of Pakistan locally recruited in Pakistan Mission abroad as does not exceed 75 per cent of his gross salary.” 3 Clause (36) omitted by the Finance At, 2003. The omitted clause (36) read as follows: “(36) Any income of an officer representing the sum received by him as Personal Staff Subsidy admissible to him under the Cabinet Secretariat (Establishment Division) Office Memorandum No. 18/2/78-CV, dated the 13th July, 1978.” 4 Clause (37) omitted by the Finance Act, 2002. The omitted clause (37) read as follows: “(37) Any income representing cost of living allowance admissible to the Government employees at the rate of 7%.” 5 Clause (38) omitted by the Finance Act, 2006. The omitted clause (38) read as follows: “(38) Any sum paid, for purpose of meeting the charges for gas, water and electricity, or the value of gas, water and electricity provided free of charge to an employee up to ten per cent of the minimum of time scale, and where there is no time scale, up to ten per cent of the basic salary.” 6 Clause (39) omitted by the Finance Act, 2021. The omitted clause read as follows: “(39) Any special allowance or benefit (not being entertainment or conveyance allowance) or other perquisite within the meaning of section 12 specially granted to meet expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit.” 7 Inserted by the Finance Act, 2018. 8 Words “internal security allowance, compensation in lieu of bearer allowance,” inserted though Finance Act, 2019. 9 Clause (41) omitted by the Finance Act, 2003. The omitted clause (41) read as follows: “(41) Such portion of the income of a member of Pakistan Armed Forces as is compulsorily payable by him under any orders issued by Government to mess, entertainment or band fund.” 561 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 9[ ] (51) The perquisite represented by the right of the President of Pakistan 10[ ] the Provincial Governors and the Chiefs of Staff, Pakistan Armed Forces to occupy free of rent as a place of residence any premises provided by the Government. (52) The perquisite represented by free conveyance provided and the sumptuary (entertainment) allowance granted by Government to 11[ ] the Chiefs of Staff, Pakistan Armed Forces and the Corps Commanders. 1 Clause (42) omitted by the Finance Act, 2006. The omitted clause (42) read as follows: “(42) Any amount received as flying allowance by pilots, flight engineers and navigators employed by any Pakistani airline or by Civil Aviation Authority.” 2 Clause (43) omitted by the Finance Act, 2006. The omitted clause (43) read as follows: “(43) Any amount notified as flying allowance payable to pilots, flight engineers and navigators of the Pakistan Air Force.” 3 Clause (44) omitted by the Finance Act, 2006. The omitted clause (44) read as follows: “(44) Any amount notified as flying allowance payable to pilots, flight engineers and navigators of the Pakistan Army and the Pakistan Navy.“ 4 Clause (45) omitted by the Finance Act, 2006. The omitted clause (45) read as follows: “(45) Any amount received as flying allowance by junior commissioned officers or other ranks of Pakistan Armed Forces.“ 5 Clause (46) omitted by the Finance Act, 2006. The omitted clause (46) read as follows: “(46) Any amount notified as submarine allowance payable to officers of the Pakistan Navy.” 6 Clause (47) omitted by the Finance Act, 2006. The omitted clause (47) read as follows: “(47) The value of rations issued in kind, or cash allowance paid in lieu thereof, to members of Pakistan Armed Forces or of Territorial Forces.” 7 Clause (48) omitted by the Finance Act, 2006. The omitted clause (48) read as follows: “(48) The value of rent-free quarters occupied by, or cash allowance paid in lieu thereof, to members of the Pakistan Armed Forces, including Territorial Force.” 8 Clause (49) omitted by the Finance Act, 2006. The omitted clause (49) read as follows: “(49) The conservancy allowance granted in lieu of free conservancy to personnel below commissioned rank of Pakistan Armed Forces and Territorial Force.” 9 Clause (50) omitted by the Finance Act, 2003. The omitted clause (50) read as follows: “(50) Deferred pay admissible to Armed Forces personnel under the new Pay Code.” 10 The comma and words “,the Provincial Governors” omitted by the Finance Supplementary (Amendment) Act, 2018. 11 The words and comma “the Provincial Governors,” omitted by the Finance Supplementary (Amendment) Act, 2018. 562 Second Schedule – Part-I_____ __________________________ 1[ ] 2[(53A) The following perquisites received by an employee by virtue of his employment, namely:- 3[ ] (ii) free or subsidized food provided by hotels and restaurants to its employees during duty hours; (iii) free or subsidized education provided by an educational institution to the children of its employees; (iv) free or subsidized medical treatment provided by a hospital or a clinic to its employees; and (v) any other perquisite or benefit for which the employer does not have to bear any marginal cost, as notified by the4[Board].] 5[ ] (55) The perquisites represented by the right of a judge of the Supreme Court of Pakistan or of a judge of High Court to occupy free of rent as a place of residence any premises provided by Federal or Provincial Government, as the case may be, or in case a judge chooses to reside in a house not provided by Government, so much of income which represents the sum paid to him as house rent allowance. (56) The following perquisites, benefits and allowances received by a Judge of Supreme Court of Pakistan and Judge of High Court, shall be exempt from tax. (1) (a) Perquisites and benefits derived 6[from] use of official car maintained at Government expenses. 1 Clause (53) omitted by the Finance Supplementary (Amendment) Act, 2018. The omitted clause (53) read as follows: “(53) The following perquisites and allowances provided or granted by Government to the Ministers of the Federal Government, namely:- (a) rent-free accommodation in so far as the value thereof exceeds ten per cent of the basic salary of the Ministers concerned; (b) house-rent allowance paid by Government in lieu of rent-free accommodation in so far as it exceeds five hundred and fifty rupees per month; (c) free conveyance; and (d) sumptuary allowance 2 Inserted by the Finance Act, 2005. 3 Sub-clause (i) omitted by the Finance Act, 2013. The omitted sub-clause (i) read as follows: “(i) free or concessional passage provided by transporters including airlines to its employees (including the members of their household and dependents);” 4 The words “Central Board of Revenue” substituted by the Finance Act, 2007. 5 Clause (54) omitted by the Finance Act, 2002. The omitted clause (54) read as follows: “(54) Any sum paid, for purpose of meeting the charges for gas, water and electricity, or the value of gas, water and electricity provided free of charge to the Federal and Provincial Ministers.” 6 The word “form” substituted by the Finance Act, 2005. 563 Second Schedule – Part-I_____ __________________________ (b) Superior judicial allowance payable to a Judge of supreme Court of Pakistan and Judge of a High Court. (c) Transfer allowance payable to a Judge of High Court. (2) The following perquisites of the Judge of Supreme Court of Pakistan and Judge of High Court shall also be exempt from tax during service, and on or after retirement. (a) The services of a driver and an orderly. (b) 1000 (one thousand) free local telephone calls per month. (c) 1000 units of electricity as well as (25 hm3 of gas) per month and free supply of water; and (d) 200 litres of petrol per month. (3) If during service, a judge dies, exemption from tax in respect of benefits and perquisites provided to widow as mentioned in sub-clause (2) shall also be available to the widow. (57) (1) Any income from voluntary contributions, house property and investments in securities of the Federal Government derived by the following, namely:- (i) National Investment (Unit) Trust of Pakistan established by the National Investment Trust Limited, if not less than ninety per cent of its Units at the end of that year are held by the public and not less than ninety per cent of its come of the year is distributed among the Unit-holders; (ii) Any Mutual Fund approved by the 1[Securities and Exchanges commission of Pakistan] and set up by the Investment Corporation of Pakistan, if not less than ninety per cent of its Certificates at the end of that year are held by the public and not less than ninety per cent of its income of that year is distributed among the Certificate-holders; and 2[ ] (2) Any income 3[other than capital gain on stock and shares of public company, PTC vouchers, modaraba certificates, or any instrument of redeemable capital and derivative products held for less than 12 months] derived by any Mutual 1 The words “Controller of Capital Issues” substituted by the Finance Ordinance, 2002 2 Paragraph (iii) of sub-clause (1) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted paragraph read as follows: “(iii) Sheikh Sultan Trust, Karachi” 3 Inserted by the Finance Act, 2010. 564 Second Schedule – Part-I_____ __________________________ Fund, investment company, or a collective investment scheme 1[or a 2[REIT Scheme] 3[or Private Equity and Venture Capital Fund]] 4[ ] or the National Investment (Unit) Trust of Pakistan established by the National Investment Trust Limited from any instrument of redeemable capital as defined in the 5[Companies Act, 2017 (XIX of 2017), if not less than ninety per cent of its income of that year is distributed amongst the Unit- holders. (3) Any income of the following funds and institution, namely:- (i) a provident fund to which the Provident Funds Act, 1925 (XIX of 1925), applies; (ii) trustees on behalf of a recognized provident fund or an approved superannuation fund or an approved gratuity fund; (iii) a benevolent fund or group insurance scheme approved by the 6[Board] for the purposes of this clause; (iv) Service Fund; (v) Employees Old Age Benefits Institution established under the Employees Old Age Benefit Act, 1976 (XIV of 1976); (vi) any Unit, Station or Regimental Institute; and (vii) any recognized Regimental Thrift and Savings Fund, the assets of which consist solely of deposits made by members and profits earned by investment thereof; 7[(viii) a Pension Fund approved by the Securities and Exchange Commission of Pakistan under the Voluntary Pension System Rules, 2005;] 8[(ix) any profit or gain or benefit derived by a pension fund manager from a pension Fund approved under the Voluntary Pension System Rules, 2005, on redemption of the seed capital invested in pension 1 Words inserted by the Finance Act, 2006. 2 The words “real estate investment trust” substituted by the Finance Act, 2008. 3 Inserted by the Finance Act, 2007. 4 The words “approved by the Securities and Exchange Commission of Pakistan” Omitted by the Finance Act, 2008. 5 The expression “Companies Ordinance, 1984 (XLVII of 1984)” substituted by the Finance Act, 2021. 6 The words “Central Board of Revenue” substituted by the Finance Act, 2007. 7 Added by the Finance Act, 2005. 8 Added by the Finance Act, 2005. 565 Second Schedule – Part-I_____ __________________________ fund as specified in the Voluntary Pension System Rules, 2005 1[;] ] 2[ ] 3[xi. International Irrigation Management Institute.] 4[xii. Punjab Pension Fund established under the Punjab Pension Fund Act, 2007 (I of 2007) and the trust established thereunder.] 5[xiii. Sindh Province Pension Fund established under the Sindh Province Pension Fund Ordinance, 2002.] 6[(xiv) Punjab General Provident Investment Fund established under the Punjab General Provident Investment Fund Act, 2009 (V of 2009) and the trust established thereunder.] Explanation.—For the purpose of this clause, "Service Fund" means a fund which is established under the authority, or with the approval of the Federal Government for the purpose of — (a) securing deferred annuities to the subscribers of payment to them in the event of their leaving the service in which they are employed; or (b) making provision for their wives or children after their death; or (c) making payment to their estate or their nominees upon their death. 7[(xv) Khyber Pakhtunkhwa Retirement Benefits and Death Compensation Fund. (xvi) Khyber Pakhtunkhwa General Provident Investment Fund. (xvii) Khyber Pakhtunkhwa Pension Fund.] 1 Full stop substituted by the Finance Act, 2006. 2 Paragraph (x) omitted by the Finance Act, 2008. The omitted paragraph (x) read a follows: “(x) the accumulated balance upto 25% received from the voluntary pension system offered by a pension fund manager under the Voluntary Pension System Rules, 2005 at the time of eligible person’s: (a) retirement; or (b) disability rendering him unable to work; or (c) death by his nominated survivors.” 3 Inserted by S.R.O. 1038(I)/2006, dated 09.10.2006. 4 Added by the Finance Act, 2010. 5 Clause (xiii) added by the Finance Act, 2014. 6 Inserted by the Finance Act, 2015. 7 Added by the Finance Act, 2018. 566 Second Schedule – Part-I_____ __________________________ 1[(4) any income of the following funds, institutions, foundations and trusts, namely:- TABLE Sr. No. Name (1) (2) i. Pension of a former President of Pakistan and his widow. ii. State Bank of Pakistan and State Bank of Pakistan Banking Services Corporation. iii. Federal Board of Revenue Foundation. iv. Pakistan Council of Scientific and Industrial Research. v. The Pakistan Water and Power Development Authority established under the Pakistan Water and Power Development Authority Act, 1958 (W. P. Act XXXI of 1958). vi. Pakistan Agricultural Research Council. vii. The corporatized entities of Pakistan Water and Power Development Authority from the date of their creation upto the date of completion of the process of corporatization i.e. till the tariff is notified. viii. The Prime Minister’s Special Fund for victims of terrorism. ix. Chief Minister’s (Punjab) Relief Fund for Internally Displaced Persons (IDPs) of NWFP. x. Supreme Court of Pakistan – Diamer Bhasha & Mohmand Dams – Fund. xi. National Disaster Risk Management Fund. xii. The Prime Minister’s COVID-19 Pandemic Relief Fund-2020. xiii. National Endowment Scholarship for Talent (NEST). xiv. Securities and Exchange Commission of Pakistan. xv. Privatisation Commission of Pakistan. xvi. Fauji Foundation. xvii. Audit Oversight Board. xviii. Supreme Court Water Conservation Account. xix. Baluchistan Education Endowment Fund (BEEF). xx. Army Welfare Trust. xxi. Public Private Partnership Authority for tax year 2022 and subsequent four tax years xxii. The Prime Minister's Relief Fund for Flood, Earthquake and Other Calamities with effect on and from the 5th August, 2022. xxiii. Export-Import Bank of Pakistan xxiv. Deposit Protection Corporation established under sub-section (l) of section 3 of Deposit Protection Corporation Act, 2016 (XXXVII of 2016). xxv. WAPDA First Sukuk Company Limited. xxvi. Pakistan Domestic Sukuk Company Ltd. 1 Sub-clause (4) inserted by the Finance Act, 2025. 567 Second Schedule – Part-I_____ __________________________ xxvii. W APDA on issuance of twenty billion rupees TFC’s/SUKUK certificates for consideration of Diamer Bhasha Dam Projects. xxviii. W APDA Second Sukuk Company Limited. xxix. P akistan International Sukuk Company Limited. xxx. Second Pakistan International Sukuk Company Limited. xxxi. Third Pakistan International Sukuk Company Limited. xxxii. Is lamic Naya Pakistan Certificates Company Limited (INPCCL). xxxiii. P akistan Mortgage Refinance Company Limited.; xxxiv. T he Pakistan Global Sukuk Programme Company Limited. xxxv. S haheed Mohtarma Benazir Bhutto Institute of Trauma, Karachi xxxvi. N ational Memorial Bab-e-Pakistan Trust. xxxvii. P akistan Poverty Alleviation Fund. xxxviii. N ational Rural Support Programme. xxxix. Karandaaz Pakistan from Tax Year 2015 onwards xl. The Institutions of the Agha Khan Development Network (Pakistan) as contained in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and the Agha Khan Development Network. xli. International Finance Corporation established under the International Finance Corporation Act, 1956 (XXVIII of 1956) and provided in section 9 of Article VI of Articles of Agreement 1955 as amended through April 1993. xlii. Asian Infrastructure Investment Bank and persons as provided in Article 51 of Chapter IX of the Articles of Agreement signed and ratified by Pakistan and entered into force on the 25th December, 2015. xliii. SAARC Energy Centre. xliv. The Asian Development Bank established under the Asian Development Bank Ordinance, 1971 (IX of 1971). xlv. International Islamic Trade Finance Corporation. xlvi. Islamic Corporation for Development of Private Sector. xlvii. ECO Trade and Development Bank. xlviii. The Islamic Chamber of Commerce and Industry under the Organization of Islamic Conference (OIC). xlix. Commission on Science and Technology for Sustainable Development in the South (COMSATS) formed under International Agreement signed on 5th October, 1994. l. Saarc Arbitration Council (SARCO). li. International Parliamentarians’ Congress. lii. Army Officers Benevolent Fund/Benevolent Fund/Bereaved Family Scheme. 1[ ] 1 Clauses (58), (58A), (59) and (60) omitted by the Finance Act, 2014. The omitted clauses read as follows: 568 Second Schedule – Part-I_____ __________________________ 1[ ] “(58) (1) Any income of a trust or welfare institution or non-profit organization specified in sub- clauses (2) and (3) from donations, voluntary contributions, subscriptions, house property, investments in the securities of the Federal Government and so much of the income chargeable under the head "Income from business" as is expended in Pakistan for the purposes of carrying out welfare activities: Provided that in the case of income under the head "Income from business", the exemption in respect of income under the said head shall not exceed an amount which bears to the income under the said head the same proportion as the said amount bears to the aggregate of the incomes from the aforesaid sources of income. (2) A trust administered under a scheme approved by the Federal Government in this behalf and established in Pakistan exclusively for the purposes of carrying out such activities as are for the benefit and welfare of— (i) ex-servicemen and serving personnel, including civilian employees of the Armed Forces, and their dependents; or (ii) ex-employees and serving personnel of the Federal Government or a Provincial Government and their dependents, where the said trust is administered by a committee nominated by the Federal Government or, as the case may be, a Provincial Government. (3) A trust or welfare institution or non-profit organization approved by Regional Commissioner of Income Tax for the purposes of this sub-clause. (58A) Income of a university or other educational institution being run by a non-profit organization existing solely for educational purposes and not for purposes of profit. (59) Any income which is derived from investments in securities of the Federal Government, profit on debt from scheduled banks, grant received from Federal Government or Provincial Government or District Government, foreign grants and house property held under trust or other legal obligations wholly, or in part only, for religious or charitable purposes and is actually applied or finally set apart for application thereto: Provided that nothing in this clause shall apply to so much of the income as is not expended within Pakistan: Provided further that if any sum out of the amount so set apart is expended outside Pakistan, it shall be included in the total income of the tax year in which it is so expended or of the year in which it was set apart, whichever is the greater, and the provisions of section 122 shall not apply to any assessment made or to be made in pursuance of this proviso. Explanation.— Notwithstanding anything contained in the Mussalman Wakf Validating Act, 1913 (VI of 1913), or any other law for the time being in force or in the instrument relating to the trust or the institution, if any amount is set apart, expended or disbursed for the maintenance and support wholly or partially of the family, children or descendents of the author of the trust or the donor or, the maker of the institution or for his own maintenance and support during his life time or payment to himself or his family, children, relations or descendents or for the payment of his or their debts out of the income from house property dedicated, or if any expenditure is made other than for charitable purposes, in each case such expenditure, provision, setting apart, payment or disbursement shall not be deemed, for the purposes of this clause, to be for religious or charitable purposes. (60) Any income of a religious or charitable institution derived from voluntary contributions applicable solely to religious or charitable purposes of the institution: Provided that nothing contained in clause (61) or this clause shall apply to the income of a private religious trust which does not ensure for the benefit of the public.” 1 Clause (61) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(61) 1[Any] amount paid as donation to the following institution, foundations, societies, boards, trusts and funds, namely: — (i) any Sports Board or institution recognised by the Federal Government for the purposes of promoting, controlling or regulating any sport or game; 1[(ia) The Citizens Foundation;] 1[ ] (iii) Fund for Promotion of Science and Technology in Pakistan; (iv) Fund for Retarded and Handicapped Children; 569 Second Schedule – Part-I_____ __________________________ (v) National Trust Fund for the Disabled; 1[ ] (vii) Fund for Development of Mazaar of HazaratBurri Imam; (viii) Rabita-e-Islami's Project for printing copies of the Holy Quran; (ix) Fatimid Foundation, Karachi; (x) Al-Shifa Trust; 1[ ] (xii) Society for the Promotion of Engineering Sciences and Technology in Pakistan; 1[ ] 1[ ] 1[ ] 1[ ] 1[ ] 1[ ] 1[ ] 1[ ] 1[ ] 1[ ] (xxiii) Citizens-Police Liaison Committee, Central Reporting Cell, Sindh Governor House, Karachi; (xxiv) ICIC Foundation; 1[ ] (xxvi) National Management Foundation; (xxvii) Endowment Fund of the institutions of the Agha Khan Development Network (Pakistan listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network; (xxviii) Shaheed Zulfiqar Ali Bhutto Memorial Awards Society; (xxix) Iqbal Memorial Fund; (xxx) Cancer Research Foundation of Pakistan, Lahore; (xxxi) Shaukat Khanum Memorial Trust, Lahore; (xxxii) Christian Memorial Hospital, Sialkot; (xxxiii) National Museums, National Libraries and Monuments or institutions declared to be National Heritage by the Federal Government; (xxxiv) Mumtaz Bakhtawar Memorial Trust Hospital, Lahore; (xxxv) Kashmir Fund for Rehabilitation of Kashmir Refugees and Freedom Fighters; (xxxvi) Institutions of the Agha Khan Development Network (Pakistan) listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network; (xxxvii) Azad Kashmir President's Mujahid Fund, 1972 ; National Institute of Cardiovascular Diseases, (Pakistan) Karachi; Businessmen Hospital Trust, Lahore; Premier Trust Hospital, Mardan ; Faisal Shaheed Memorial Hospital Trust, Gujranwala; Khair-un- Nisa Hospital Foundation, Lahore; Sind and Balochistan Advocates' Benevolent Fund; Rashid Minhas Memorial Hospital Fund; (xxxviii) Any relief 1[or] welfare fund established by the Federal Government; (xxxix) Mohatta Palace Gallery Trust; 1[ ] 1[(xl)] Bagh-e-Quaid-e-Azam project, Karachi1[; 1[ ] ] 1[(xli) Any amount donated for Tameer-e-Karachi Fund1[:] ] 1[(xlii) Pakistan Red Crescent Society;] 1[(xliii) Bank of Commerce and Credit International Foundation for Advancement of Science and Technology;] 1[(xliv) Any amount donated to Federal Board of Revenue Foundation.] 1[“(xlv) The Indus Hospital, Karachi.”] 1[(xlvi) Pakistan Sweet Homes Angels and Fairies Place. (xlvii) Al-Shifa Trust Eye Hospital. 570 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] (xlviii) Aziz Tabba Foundation 1[(liv) Supreme Court of Pakistan – Diamer Bhasha & Mohmand Dams – Fund.] 1[(lv) Layton Rahmatullah Benevolent Trust (LRBT). (lvi) Akhuwat.] 1[(lvii) The Prime Minister’s COVID-19 Pandemic Relief Fund-2020; (lviii) Ghulam Ishaq Khan Institute of Engineering Sciences and Technology (GIKI); (lvix) Lahore University of Management Sciences; (lvx) Dawat-e-Hadiya, Karachi; (lvxi) Baitussalam Welfare Trust; (lvxii) Patients’ Aid Foundation; (lvxiii) Alkhidmat Foundation; (lvxiv) Alamgir Welfare Trust International] 1[: Provided further that the amount so donated by an associate shall not exceed- (a) in the case of an individual or association of persons, fifteen percent of the taxable income of the person for the year; and (b) in the case of company, ten percent of taxable income of the person for the year: Provided also that the provisions of this clause shall apply only if donation is paid by a crossed cheque drawn on a bank.] 1 Clause (62) omitted by the Finance Act, 2008. The omitted clause (62) read as follows: “(62) Such portion of the total income of a taxpayer as is paid by him during the income year as donation to the Liaquat National Hospital Association, Karachi: Provided that the amount so donated shall be included in computing the total income of the taxpayer: Provided further that the amount by which the taxable by a taxpayer is reduced on account of the exemption under this clause shall be equal to the sum which bears the same proportion to the sum exempted from tax under this clause as the tax payable on the total income of the taxpayer bears to the said total income.” 2 Clause (63) omitted by the Finance Act, 2006. The omitted clause (63) read as follows: “ (63) Any amount paid as donation to the President’s Relief Fund for Tsunami Victims.” Earlier Clause (63) was omitted by the Finance Act, 2002. which read as follows: “(63) Any amount paid as donation to the Prime Minister's Fund for National Debt Retirement: Provided that the exemption under this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July,2002. “ 3 Clause (63A) omitted by the Finance Act, 2008. The omitted clause (63A) read as follows: “(63A) Any amount paid as donation to the President’s Relief Fund for Earthquake Victims 2005.” 4 Clause (63B) omitted by the Finance Act, 2008. The omitted clause (63B) read as follows: “(63B) Any amount donated or paid, as sponsorship in connection with the holding of 2nd session of the World Islamic Economic Forum, 2006.” 5 Clause (64) omitted by the Finance Act, 2002. The omitted clause (64) read as follows: “(64) Any amount paid as donation to the National Self Reliance Fund: Provided that the exemption under this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July,2002.” 6 Inserted by S.R.O. 389(I)/2009, dated 19.05.2009. 571 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[(65A) Income for any tax year commencing from the tax year 2003, derived from the Welfare Fund created under rule-26 of the Emigration Rules, 1979 (made under section 16 of the Emigration Ordinance, 1979 (XVIII of 1979), except the income generated by the aforesaid Fund through commercial activities.] 7[(65B) Any monetary award received from the Federal or Provincial Government or from a Public Office holder by a sportsperson winning a medal in international Olympic Games representing Pakistan: Provided that this clause shall be applicable from tax year 2025.] 8[ ] 1 Clause (64A) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(64A) Any amount donated to the Prime Minister’s Special Fund for victims of terrorism.] 2 Inserted by S.R.O. 576(I)/2009, dated 18.06.2009. 3 Clause (64B) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “((64B) Any amount donated to the Chief Minister’s (Punjab) Relief Fund for Internally Displaced Persons (IDPs) of NWFP.]” 4 Inserted by S.R.O. 755(I)/2010, dated 09.08.2011. 5 Clauses (64C) and (65) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “(64C) Prime Minister’s Flood Relief Fund 2010 and Provincial Chief Ministers’ Relief Funds, for victims of flood 2010.] (65) Any income derived from donations made by non-official or private sector sources in Pakistan to the Waqf for Research on Islamic History, Art and Culture, Istanbul set up by the Research Centre for Islamic History, Art and Culture (IRCICA).” 6 Serial No. (65A) inserted by S.R.O 819(I)/202, dated 04.07.2012. 7 Clause (65B) inserted by the Finance Act 2025. 8 Clause (66) substituted by the Finance Act, 2020. The substituted clause (66) read as follows: (66) Any income derived by— i. Abdul SattarEdhi Foundation, Karachi; ii. Al-Shifa Trust, Rawalpindi. iii. BilquisEdhiFoundation, Karachi. iv. Fatimid Foundation, Karachi. 8[ ] vi. International Islamic Trade Finance Corporation”. vii. Islamic Corporation for Development of Private Sector; viii. National Memorial Bab-e-Pakistan Trust for the assessment year commencing on or after the 1st day of July, 1994. ix. Pakistan Agricultural Research Council, Islamabad. x. Pakistan Engineering Council; 572 Second Schedule – Part-I_____ __________________________ xi. The corporatized entities of Pakistan Water and Power Development Authority from the date of their creation upto the date of completion of the process of corporatization i.e. till the tariff is notified. xii. The Institution of Engineers, Pakistan, Lahore. 8[(xiia) The Prime Minister’s Special Fund for victims of terrorism.] 8[(xiib) Chief Minister’s (Punjab) Relief Fund for Internally Displaced Persons (IDPs) of NWFP.] xiii. The Institutions of the Agha Khan Development Network (Pakistan) as contained in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and the Agha Khan Development Network. xiv. The Liaquat National Hospital Association, Karachi. xv. The Pakistan Council of Scientific and Industrial Research. xvi. The Pakistan Water and Power Development Authority established under the Pakistan Water and Power Development Authority Act, 1958 (W. P. Act XXXI of 1958).] 8[xvii. WAPDA First Sukuk Company Limited.] 8[8[ ] ] 8[(xix) Pension of a former President of Pakistan and his widow under the President Pension Act, 1974 (IX of 1975).] 8[(xx) State Bank of Pakistan and State Bank of Pakistan Banking Services Corporation.] 8[(xxi) International Finance Corporation established under the International Finance Corporation Act, 1956 (XXVIII of 1956) and provided in section 9 of Article VI of Articles of Agreement 1955 as amended through April 1993.] 8[(xxii) Pakistan Domestic Sukuk Company Ltd.] 8[(xxiii) The Asian Development Bank established under the Asian Development Bank Ordinance, 1971 (IX of 1971).] 8[(xxiv) The ECO Trade and Development Bank.] 8[8[(xxv)] The Islamic Chamber of Commerce and Industry under the Organization of Islamic Conference (OIC).] 8[8[(xxvi)] Commission on Science and Technology for Sustainable Development in the South (COMSATS) formed under International Agreement signed on 5th October, 1994.] 8[8[(xxvii)] WAPDA on issuance of twenty billion rupees TFC’s/SUKUK certificates for consideration of DiamerBhasha Dam Projects.] 8[8[(xxviii)] Federal Board of Revenue Foundation.] 8[8[(xxix)] WAPDA Second Sukuk Company Limited.] 8[8 [(xxx)] The Citizens Foundation.] 8[8[(xxxi)] Sindh Institute of Urology and Transplantation, SIUT Trust and8[Society for the Welfare of SIUT.]] 8[8[“(xxxii)” Greenstar Social Marketing Pakistan (Guarantee) Limited.]] 8[“(xxxiii) Pakistan International Sukuk Company Limited.”] 8[“(xxxiii) The Indus Hospital, Karachi.”] 8[“(xxxiv) Second Pakistan International Sukuk Company Limited.”] 8[(xxxv) Third Pakistan International Sukuk Company Limited.”;] 8[(xxxv) Third Pakistan International Sukuk Company Limited.] 8[(xxxvi) Asian Infrastructure Investment Bank and persons as provided in Article 51 of Chapter IX of the Articles of Agreement signed and ratified by Pakistan and entered into force on the 25th December, 2015. (xxxvii) Gulab Devi Chest Hospital. (xxxviii) Pakistan Poverty Alleviation Fund. (xxxix) National Academy of Performing Arts. (xl) Pakistan Sweet Homes Angels and Fairies Place. (xli) National Rural Support Programme.] 8[(xlii) SAARC Energy Centre. (xliii) Pakistan Bar Council. (xliv) Pakistan Centre for Philanthropy. 573 Second Schedule – Part-I_____ __________________________ 1[(66) Subject to the provisions of section 100C, any income, derived by the (xlv) Pakistan Mortgage Refinance Company Limited. (xlvi) Aziz Tabba Foundation. (l) Al-Shifa Trust Eye Hospital. (li) Saylani Welfare International Trust. (lii) Shaukat Khanum Memorial Trust. (liii) Layton Rahmatullah Benevolent Trust (LRBT). (liv) The Kidney Centre Post Graduate Training Institute. (lv) Pakistan Disabled Foundation. (lvi) Forman Christian College.; (lvii) Habib University Foundation. (lviii) Begum Akhtar Rukhsana Memorial Trust Hospital. (lix) Al-Khidmat Foundation. (lx) Dawat-e-Islami Trust (Ixi) Sardar Trust Eye Hospital, Lahore.] 8[(lxii) Supreme Court of Pakistan – Diamer Bhasha & Mohmand Dams – Fund.”;] 8[(lxiii) National Disaster Risk Management Fund. (lxiv) Deposit Protection Corporation established under sub-section (l) of section 3 of Deposit Protection Corporation Act, 2016 (XXXVII of 2016). (lxv) SARMAYA-E-PAKISTAN LIMITED] 8[(lxvi) Akhuwat (lxvii) Audit Oversight Board. (lxviii) Patient’s Aid Foundation.” 1 Clause (66) substituted by the Finance Act, 2025. The substituted clause read as follows: “(66) (1) Any income derived by the following institutions, foundations, societies, boards, trusts and funds, namely: — Table 1 Sr. No. Name (1) (2) (i) International Islamic Trade Finance Corporation. (ii) Islamic Corporation for Development of Private Sector. (iii) National Memorial Bab-e-Pakistan Trust. (iv) Pakistan Agricultural Research Council. (v) The corporatized entities of Pakistan Water and Power Development Authority from the date of their creation upto the date of completion of the process of corporatization i.e. till the tariff is notified. (vi) The Prime Minister’s Special Fund for victims of terrorism. (vii) Chief Minister’s (Punjab) Relief Fund for Internally Displaced Persons (IDPs) of NWFP. (viii) The Institutions of the Agha Khan Development Network (Pakistan) as contained in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and the Agha Khan Development Network. (ix) Pakistan Council of Scientific and Industrial Research. (x) The Pakistan Water and Power Development Authority established under the Pakistan Water and Power Development Authority Act, 1958 (W. P. Act XXXI of 1958). (xi) WAPDA First Sukuk Company Limited. (xii) Pension of a former President of Pakistan and his widow. (xiii) State Bank of Pakistan and State Bank of Pakistan Banking Services Corporation. 574 Second Schedule – Part-I_____ __________________________ (xiv) International Finance Corporation established under the International Finance Corporation Act, 1956 (XXVIII of 1956) and provided in section 9 of Article VI of Articles of Agreement 1955 as amended through April 1993. (xv) Pakistan Domestic Sukuk Company Ltd. (xvi) ECO Trade and Development Bank. (xvii) The Islamic Chamber of Commerce and Industry under the Organization of Islamic Conference (OIC). (xviii) Commission on Science and Technology for Sustainable Development in the South (COMSATS) formed under International Agreement signed on 5th October, 1994. (xix) WAPDA on issuance of twenty billion rupees TFC’s/SUKUK certificates for consideration of Diamer Bhasha Dam Projects. (xx) Federal Board of Revenue Foundation. (xxi) WAPDA Second Sukuk Company Limited. (xxii) Pakistan International Sukuk Company Limited. (xxiii) Second Pakistan International Sukuk Company Limited. (xxiv) Third Pakistan International Sukuk Company Limited. (xxv) Asian Infrastructure Investment Bank and persons as provided in Article 51 of Chapter IX of the Articles of Agreement signed and ratified by Pakistan and entered into force on the 25th December, 2015. (xxvi) Supreme Court of Pakistan – Diamer Bhasha & Mohmand Dams – Fund. (xxvii) National Disaster Risk Management Fund. (xxviii) Deposit Protection Corporation established under sub-section (l) of section 3 of Deposit Protection Corporation Act, 2016 (XXXVII of 2016). (xxix) SAARC Energy Centre. (xxx) The Asian Development Bank established under the Asian Development Bank Ordinance, 1971 (IX of 1971). (xxxi) The Prime Minister’s COVID-19 Pandemic Relief Fund-2020. (xxxii) Saarc Arbitration Council (SARCO). (xxxiii) International Parliamentarians’ Congress. (xxxiv) Sindh Institute of Urology and Transplantation, SIUT Trust and Society for the Welfare of SIUT. (xxxv) Shaukat Khanum Memorial Trust. (xxxvi) National Endowment Scholarship for Talent (NEST). 1[(xxxvii) Islamic Naya Pakistan Certificates Company Limited (INPCCL). (xxxviii) Abdul Sattar Edhi Foundation. (xxxix) Patient’s Aid Foundation. (xl) Indus Hospital and Health Network. (xli) Securities and Exchange Commission of Pakistan. (xlii) Dawat-e-Hadiya, Karachi. (xliii) Privatisation Commission of Pakistan. (xliv) The Citizens Foundation. (xlv) Sundus Foundation. (xlvi) Ali Zaib Foundation (xlvii) Fauji Foundation. (xlviii) Make a Wish Foundation (xlix) Audit Oversight Board. 1[(l) Supreme Court Water Conservation Account. (li) Layton Rahmatullah Benevolent Trust (LRBT). (lii) Baluchistan Education Endowment Fund(BEEF). 575 Second Schedule – Part-I_____ __________________________ (liii) Saylani Welfare International Trust. (liv) Chiniot Anjuman Islamia. (lv)] Army Welfare Trust.] “1[ [(lvi) Pakistan Mortgage Refinance Company Limited.; (lvii) The Pakistan Global Sukuk Programme Company Limited." (lviii) Karandaaz Pakistan from tax year 2015 onwards (lix) Pakistan Sweet Homes Angels and Fairies Place. (lx) Public Private Partnership Authority for tax year 2022 and subsequent four tax years (lxi) Dawat-e-Islami Trust (lxii) Hamdard Laboratories (Waqf) Pakistan 1[(lxiii) The Prime Minister's Relief Fund for Flood, Earthquake and Other Calamities with effect on and from the 5th August, 2022. (lxiv) Film and Drama Finance Fund (lxv) Export-Import Bank of Pakistan (lxvi) Shaheed Mohtarma Benazir Bhutto Institute of Trauma, Karachi (lxvii) Shaheed Zulfikar Ali Bhutto Institute of Science and Technology] (2) Subject to the provisions of section 100C, any income derived by the following institution, foundations, societies, boards, trusts and funds, namely: Table 2 Sr. No. Name (1) (2) 1[ ] (ii) Al-Shifa Trust. (iii) Bilquis Edhi Foundation. (iv) Fatimid Foundation. (v) Pakistan Engineering Council. (vi) The Institution of Engineers. (vii) Liaquat National Hospital Association. [ ] (ix) Greenstar Social Marketing Pakistan (Guarantee) Limited. [ ] (xi) Gulab Devi Chest Hospital. (xii) Pakistan Poverty Alleviation Fund. (xiii) National Academy of Performing Arts. 1[ ] (xv) National Rural Support Programme. (xvi) Pakistan Bar Council. (xvii) Pakistan Centre for Philanthropy. [ ] (xix) Aziz Tabba Foundation. [ ] (xxi) The Kidney Centre Post Graduate Training Institute. (xxii) Pakistan Disabled Foundation.. (xxiii) Forman Christian College.. (xxiv) Habib University Foundation. (xxv) Begum AkhtarRukhsana Memorial Trust Hospital. (xxvi) Al-Khidmat Foundation. 576 Second Schedule – Part-I_____ __________________________ following institutions, foundations, societies, boards, trust and funds, namely:- TABLE Sr. No. Name (1) (2) (i) Al-Shifa Trust. (ii) Fatimid Foundation. (iii) Pakistan Engineering Council. (iv) The Institution of Engineers. (v) Liaquat National Hospital Association. (vi) Greenstar Social Marketing Pakistan (Guarantee) Limited. (vii) Gulab Devi Chest Hospital. (viii) National Academy of Performing Arts. (ix) Pakistan Bar Council. (x) Pakistan Centre for Philanthropy. (xi) Aziz Tabba Foundation. (xii) The Kidney Centre Post Graduate Training Institute. [ ] (xxviii) Sardar Trust Eye Hospital, Lahore.. (xxix) Akhuwat. [ ] [ ] (xxxii) Al-Shifa Trust Eye Hospital. [ ] (xxxiv) SARMAYA-E-PAKISTAN LIMITED. (xxxv) Lahore University of Management Sciences, Lahore. [ ] (xxxvii) Ghulam Ishaq Khan Institute of Engineering Sciences and Technology. (xxxviii) Society for the Promotion of Engineering Sciences and Technology in Pakistan (SOPREST). (xxxix) Businessmen Hospital Trust. (xl) Baitussalam Welfare Trust. (xli) Alamgir Welfare Trust International. (xlii) Foundation University. 1[(xliii) Burhani Qarzan Hasnan Trust (xliv) Saifee Hospital Karachi (xlv) Saifiyah Girls Taalim Trust] 1[(xlvi) Balochistan Bar Council (xlvii) Islamabad Bar Council (xlviii) Khyber Pakhtunkhwa Bar Council (xlix) Punjab Bar Council (l) Sindh Bar Council (li) Shaheed Zulfikar Ali Bhutto Foundation (SZABF)] Provided that with effect from the 1st day of July, 2021, exemption under this sub- clause shall be subject to fulfilling the conditions specified in section 100C.” 577 Second Schedule – Part-I_____ __________________________ (xiii) Pakistan Disabled Foundation. (xiv) Forman Christian College. (xv) Habib University Foundation. (xvi) Begum AkhtarRukhsana Memorial Trust Hospital. (xvii) Al-Khidmat Foundation. (xviii) Sardar Trust Eye Hospital, Lahore. (xix) Akhuwat. (xx) Al-Shifa Trust Eye Hospital. (xxi) Sarmaya-E-Pakistan Limited. (xxii) Lahore University of Management Sciences, Lahore. (xxiii) Ghulam Ishaq Khan Institute of Engineering Sciences and Technology. Society for the Promotion of Engineering Sciences and Technology in (xxiv) Pakistan (SOPREST). (xxv) Businessmen Hospital Trust. (xxvi) Baitussalam Welfare Trust. (xxvii) Alamgir Welfare Trust International. (xxviii) Foundation University. (xxix) Burhani Qarzan Hasnan Trust (xxx) Saifee Hospital Karachi (xxxi) Saifiyah Girls Taalim Trust] (xxxii) Balochistan Bar Council (xxxiii) Islamabad Bar Council (xxxiv) Khyber Pakhtunkhwa Bar Council (xxxv) Punjab Bar Council (xxxvi) Sindh Bar Council (xxxvii) Shaheed Zulfikar Ali Bhutto Foundation (SZABF)] (xxxviii) P akistan Sweet Homes Angels and Fairies Place. (xxxix) S indh Institute of Urology and Transplantation, SIUT Trust and Society for the Welfare of SIUT. (xl) Shaukat Khanum Memorial Trust. (xli) Abdul Sattar Edhi Foundation. (xlii) Patient’s Aid Foundation. (xliii) I ndus Hospital and Health Network. (xliv) S undus Foundation. (xlv) Ali Zaib Foundation (xlvi) L ayton Rahmatullah Benevolent Trust (LRBT). (xlvii) D awat-e-Hadiya, Karachi. (xlviii) T he Citizens Foundation. (xlix) M ake a Wish Foundation (l) Saylani Welfare International Trust. (li) Dawat-e-Islami Trust (lii) Chiniot Anjuman Islamia. (liii) Hamdard Laboratories (Waqf) Pakistan (liv) Film and Drama Finance Fund (lv) Shaheed Zulfikar Ali Bhutto Institute of Science and Technology 578 Second Schedule – Part-I_____ __________________________ (lvi) Beaconhouse National University (lvii) Federal Ziauddin University (lviii) P unjab Police Welfare Organization, Lahore. ] 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 1 Clause (67) omitted by the Finance Act, 2006. The omitted clause (67) read as follows: “(67) Any income of the Liaquat National Hospital Association, Karachi.” 2 Clause (68) omitted by the Finance Act, 2006. The omitted clause (68) read as follows: “(68) Any income derived by- (i) Abdul Sattar Edhi Foundation, Karachi; and (ii) Bilquis Edhi Foundation, Karachi.” 3 Clause (69) omitted by the Finance Act, 2006. The omitted clause (69) read as follows: “(69) Any income derived by Al-Shifa Trust, Rawalpindi.” 4 Clause (70) omitted by the Finance Act, 2006. The omitted clause (70) read as follows: “(70) Any income derived by Fatimid Foundation, Karachi.” 5 Clause (71) omitted by the Finance Act, 2006. The omitted clause (71) read as follows: “(71) Any income of Hamadard Laboratories (Waqf) Pakistan.” 6 Clause (71A) omitted by the Finance Act, 2006. The omitted clause (71A) read as follows: “(71A) Any income of National Memorial Bab-e-Pakistan Trust for the assessment year commencing on or after the 1st day of July, 1994.” 7 Clause (72) substituted by the Finance Act, 2006. The substituted clause (72) read as follows: “(72) Any profit on debt payable to a non-resident person in respect of such private loan to be utilised on such project in Pakistan as may be approved by the Federal Government for the purposes of this clause, having regard to the rate of profit and the terms of re-payment of the loan and the nature of project on which it is to be utilised.” 8 Clauses (72) and (72A) omitted by the Finance Act, 2021. Earlier clause (72A) was omitted through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “(72) Any profit on debt payable to a non-resident person,- (i) in respect of such private loan to be utilized on such project in Pakistan as may be approved by the Federal Government for the purposes of this clause, having regard to the rate of profit and the terms of repayment of the loan and the nature of project on which it is to be utilized; (ii) on a loan in foreign exchange against export letter of credit which is used exclusively for export of goods manufactured or processed for exports in Pakistan 8[.] 8[(iii) being a foreign individual, company, firm or association of persons in respect of a foreign loan as is utilized for industrial investment in Pakistan provided that the agreement for such loan is concluded on or after the first day of February, 1991, and is duly registered with the State Bank of Pakistan: Provided that this clause shall have retrospective effect of exemption to the agreements entered into in the past and shall not be applicable to new contracts after the 30th day of June, 2010, prospectively.] 579 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[(75) Any profit on debt and capital gains derived by any agency of foreign Government or any non-resident person approved by the Federal Government for the purpose of this clause from debt and debt instruments approved by the Federal Government.] 6[ ] 7[ ] (78) Any profit on debt derived from foreign currency accounts held with authorised banks in Pakistan, 8[or certificate of investment issued by investment banks] in accordance with Foreign Currency Accounts Scheme introduced by the State Bank of Pakistan, by 9[non-resident individuals, non-resident association of (72A) Any income derived by Sukuk holder in relation to Sukuk issued by “The Second Pakistan International Sukuk Company Limited” 8[and the Third Pakistan International Sukuk Company Limited], including any gain on disposal of such Sukuk.”] 1 Inserted by S.R.O. 1029(I)/2014 dated 19.11.2014. 2 Clause (73) omitted by the Finance Act, 2006. The omitted clause (73) read as follows: “(73) Any profit on debt payable to a non-resident person on a loan in foreign exchange against export letter of credit which is used exclusively for export of goods manufactured or processed for exports in Pakistan.” 3 Clause (74) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021.The omitted clause read as follows: “(74) Any profit on debt derived by Hub Power Company Limited on or after the first day of July, 1991, on its bank deposits or accounts with3[financial institutions] directly connected with financial transactions relating to the project operations.” 4Clause (74A) omitted by the Finance Act, 2011. The omitted clause (74A) read as follows: “(74A) Any profit on debt, payable to National Bank of Pakistan, on foreign currency loan of US $ 100 million, given to Pakistan State Oil Company Limited (PSO) under agreement executed at Bahrain on the 29th May, 2001, approved by the Federal Government vide Finance Division’s letter No.F.3(3)EF(B-III)/2001, dated the May 29, 2001. 5 Clause (75) substituted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The substituted clause read as follows: “(75) Any income of an agency of a foreign Government, a foreign national (company, firm or association of persons), or any other non-resident person approved by the Federal Government for the purposes of this clause, from profit on moneys borrowed under a loan agreement or in respect of foreign currency instrument approved by the Federal Government.” 6Clause (76) omitted by the Finance Act, 2006. The omitted clause (76) read as follows: “(76) Any profit on debt payable to a non-resident person being a foreign individual, company, firm or association of persons in respect of a foreign loan as is utilised for industrial investment in Pakistan provided that the agreement for such loan is concluded on or after the First day of February 1991, and is duly registered with the State Bank of Pakistan.” 7 Clause (77) omitted by the Finance Act, 2008. The omitted clause (77) read as follows: “(77) Any profit derived by a non-resident person (whether a citizen of Pakistan or otherwise) in respect of the Islamic mode of financing, including istisna, morabaha, musharika.” 8 Inserted by the Finance Act, 2004. 9 The expression “citizens of Pakistan and foreign nationals residing abroad, foreign association of 580 Second Schedule – Part-I_____ __________________________ persons and non-resident companies]. (79) Any profit on debt derived from a rupee account held with a scheduled bank in Pakistan by a 1[non-resident individual holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC)], where the deposits in the said account are made exclusively from foreign exchange remitted into the said account. 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] persons, companies registered and operating abroad and foreign nationals residing in Pakistan” substituted by the Finance Act, 2021. Earlier this expression was made through Tax Laws (Amendment) Ordinance, 2021. 1 The expression “citizen of Pakistan residing abroad” substituted by the Finance Act, 2021. Earlier this expression was made through Tax Laws (Amendment) Ordinance, 2021. 2 Clause (80) omitted by the Finance Act, 2021. The omitted clause read as follows: “(80) Any income derived from a private foreign currency account held with an authorised bank in Pakistan, 2[or certificate of investment issued by investment banks] in accordance with the Foreign Currency Accounts Scheme introduced by the State Bank of Pakistan, by a resident individual who is a citizen of Pakistan: Provided that the exemption under this clause shall not be available in respect of any incremental deposits made in the said accounts on or after the 16th day of December, 1999, or in respect of any accounts opened under the said scheme on or after the said date.” 3 Clause (81) omitted by the Finance Act, 2004. The omitted clause (81) read as follows: “(81) The income of a person, other than a bank or a financial institution, by way of interest on Foreign Currency Bearer Certificates issued under the Three-Years Foreign Currency Bearer Certificate Rules, 1997.” 4 Clause (81A) omitted by Finance Act, 2014. The omitted clause (81A) read as follows: “(81A) Notwithstanding omission of clause (81), the existing holders of Foreign Currency Bearer Certificate shall continue to have the benefit of exemption till such certificates are encashed.” 5 Clause (82) omitted by the Finance Act, 2008. The omitted clause (82) read as follows: “(82) Any profit on Special US Dollar Bonds issued under the Special US Dollar Bonds Rules, 1998: Provided that the exemption under this clause shall not apply to profits on the said bonds purchased by a resident person out of any incremental deposits made in the foreign currency accounts on or after the 16th day of December, 1999, or out of new accounts opened on or after the said date.” 6 Clause (83) omitted by the Finance Act, 2008. The omitted clause (83) read as follows: “(83) Any profit on debt derived from Pak rupees account or certificates of deposit which have been created by conversion of a foreign currency account or deposit held on the 28th day of May, 1998, with a bank authorised under the Foreign Currency Accounts Scheme of State Bank of Pakistan: Provided that nothing contained in this clause shall apply to such Pak rupee account or certificates which are created out of foreign currency deposits which are not exempt under clause (78) and (80).” 7 Clause (84) omitted by the Finance Act, 2004. The omitted clause (84) read as follows: “(84) Any profit on debt received from a Pakistani bank by a foreign bank, approved by the Federal 581 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] Government for the purposes of this clause, for such period as may be determined by the Federal Government: Provided that- (i) the profit is earned on deposits comprising of remittances from abroad held in a rupee account opened with a Pakistani bank with the prior approval of the State Bank of Pakistan; (ii) the Pakistani bank maintaining the said rupee account holds 20 per cent or more of the equity capital of the said foreign bank and the management of the latter vests in the Pakistani bank; and (iii) the rate of profit chargeable on the said deposits does not exceed the rate of interest chargeable on the deposits in the foreign currency accounts allowed to be opened with banks in Pakistan by the State Bank of Pakistan.” 1 Clause (85) omitted by the Finance Act, 2002. The omitted clause (85) read as follows: “(85) Any income derived by any person, not being a bank, a banking company, financial institution, a development financing institution or a company engaged in the business of insurance, by way of return on bearer bonds issued by the Pakistan Water and Power Development Authority, established under the Pakistan Water and Power Development Authority Act, 1958 (West Pakistan Act. No.( XXXI of 1958): Provided that nothing contained in this clause shall apply in respect of return on bonds issued on or after the first day of July, 1991.” 2 Clause (86) omitted by the Finance Act, 2002. The omitted clause (86) read as follows: “(86) Any income derived by any person, being an individual, by way of return on bearer or registered bonds (Second issue, 1989), issued by the Pakistan Water and Power Development Authority, established under the Pakistan Water and Power Authority Act, 1958 (West Pakistan Act, No. XXXI of 1958): Provided that nothing contained in this clause shall apply in respect of return on bonds issued on or after the first day of July, 1991.” 3 Clause (87) omitted by the Finance Act, 2003. The omitted clause (87) read as follows: “(87) Any income derived by a non-resident person from foreign investment in 7th issue of Pak rupee denominated WAPDA Energy Bonds issued under the WAPDA Energy Bonds (7th Issue) Regulations, 1997.” 4 Clause (88) omitted by the Finance Act, 2004. The omitted clause (88) read as follows: “(88) Any income derived by a non-resident person(excluding local branches, subsidiaries or offices of foreign banks, companies, associations of persons or any other person operating in Pakistan) from Federal Government securities and redeemable capital, as defined in the Companies Ordinance, 1984, (XLVII of 1984) listed on a registered stock exchange, where the investments are made exclusively from foreign exchange remitted into Pakistan through a Special Convertible Rupee Account maintained with a bank in Pakistan.” 5 Clause (88A) omitted by Finance Act, 2014. The omitted clause (88A) read as follows: “ (88A) Notwithstanding omission of clause (88), the existing holders of Federal Government Securities and redeemable capital shall continue to have benefit of exemption till the maturity of the securities and redeemable capital.” 6 Clause (89) omitted by the Finance Act, 2002. The omitted clause (89) read as follows: ”(89) Any income derived by an individual or association of persons from rated and listed Term Finance Certificates being the instruments of redeemable capital under the Companies Ordinance 1984, issued on or after the 14th day of September 1997: Provided that the exemption under this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002.” 582 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 1 Clause (90) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(90) Any profit on debt payable by an industrial undertaking in Pakistan — (i) on moneys borrowed by it under a loan agreement entered into with any such financial institution in a foreign country as may be approved in this behalf by the Federal Government by a general or special order; and (ii) on moneys borrowed or debts incurred by it in a foreign country in respect of the purchase outside Pakistan of capital plant and machinery in any case where the loan or debt is approved by the Federal Government, having regard to its terms generally and in particular to the terms of its payment, from so much of the tax payable in respect thereof as exceeds the tax or taxes on income paid on such interest in the foreign country from which the loan emanated or in which the debt was incurred (hereinafter referred to as the `said country'): Provided that, where the amount of such tax or taxes paid in the said country exceeds the amount of the tax payable in Pakistan, no refund of the amount paid in excess shall be allowed: Provided further that, where the said country exempts such interest or allows credit against its own tax for the tax which would have been payable in Pakistan if the said interest were liable to tax in Pakistan, no tax shall be payable in Pakistan in respect of such interest.” 2 Inserted by the Finance Act, 2018. 3 Clauses (90A) and (91) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “(90A) Any profit on debt derived by any person on bonds issued by Pakistan Mortgage Refinance Company to refinance the residential housing mortgage market, for a period of five years with effect from the 1st day of July, 2018. (91) Any income of a text-book board of a Province established under any law for the time being in force, accruing or arising from the date of its establishment.” 4 Clause (92) omitted by the Finance Act, 2013. The omitted clause (92) read as follows: “(92) Any income of any university or other educational institution established solely for educational purposes and not for purposes of profit.” 5 Clause (92 A) omitted by Finance Act, 2014. The omitted clause (92A) read as follows: “(92A) Any income of any university or any other educational institution established in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA, for a period of two years ending on the 30th day of June, 2011.” 6 Clause (93) omitted by the Finance Act, 2011. The omitted clause (93) read as follows: “(93) Profits and gains derived by a taxpayer from the running of any computer training institution or computer training scheme, recognized by a Board of Education or a University or the University Grant Commission, as the case may be, set up between the first day of July, 1997, and the thirtieth day of June, 2005, both days inclusive, for a period of five years beginning with the month in which such institution is set up: Provided that a computer training institution or computer training scheme approved by the Central Board of Revenue before the first day of July, 2000 shall continue to avail exemption under this clause till the expiry of the specified period.” 7 Clause (93 A) omitted by Finance Act, 2014. The Omitted clause (93A) read as follows: “(93A) Profits and gains derived by a taxpayer from the running of any vocational institute or 583 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[(98AA) Any income derived by ICC Business Corporation (IBC) or International Cricket Council (ICC) or employees, officials, agents and representatives of IBC and ICC, officials from ICC members, players, coaches, medical doctors and officials of member countries, IBC partners and media representatives, other than persons who are resident of Pakistan, from ICC champions Trophy, 2025 hosted in Pakistan.] technical institute or poly-technical institute, recognized by a Board of Technical Education or a university or any other authority appointed in this behalf by the Federal Government or a Provincial Government, as the case may be, set up between the first day of July, 2004, and the thirtieth day of June, 2008, both days inclusive, for a period of five years beginning from the tax year in which such institution is recognized.” 1 Clause (94) omitted by the Finance Act, 2002. The omitted clause (94) read as follows: “(94) Any amount paid by way of Federal Educational Fee or expended on setting up and managing or running of a middle, high or technical school in accordance with the conditions laid down in the Federal Education Fee Scheme.” 2 Clause (95) omitted by the Finance Act, 2006. The omitted clause (95) read as follows: “(95) Any income derived by the Pakistan Council of Scientific and Industrial Research.” 3 Omitted by the Finance Act, 2006. The omitted clause (96) read as follows: “(96) Any income derived by the Institution of Engineers, Pakistan, Lahore.” 4 Clause (97) omitted by the Finance Act, 2006. The omitted clause (97) read as follows: “(97) Income of Pakistan Agricultural Research Council, Islamabad.” 5 Clause (98) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(98) Any income derived by any Board or other organization established 5[by Government] 5[ ] in Pakistan for the purposes of controlling, regulating or encouraging major games and sports recognised by Government 5[:] 5[Provided that the exemption of this clause shall not be applicable to the Pakistan Cricket Board.] 6 Clause (98A) omitted by the Finance Act, 2013. The omitted clause (98A) read as follows: “(98A) Any income derived by International Cricket Council Development (International) Limited (IDI), International Cricket Council (ICC), employees, officials, agents and representatives of IDI and ICC officials from ICC members, players, coaches, medical doctors and officials of member countries, IDI partners and media representatives, other than persons who are resident of Pakistan, from ICC champions Trophy, 2001 hosted in Pakistan” 7 Clause (98AA) added by the Finance Act 2025. Earlier this clause was inserted through S.R.O.579(I)/2025 dated 9th April, 2025. 584 Second Schedule – Part-I_____ __________________________ 1[(99) Any income derived by a Collective Investment Scheme or a REIT Scheme 2[including Special Purpose Vehicle], if not less than ninety per cent of its accounting income of that year, as reduced by 3[accumulated losses and] capital gains whether realized or unrealized, is distributed amongst the unit or certificate holders or shareholders as the case may be 4[: Provided that for the purpose of determining distribution of at least 90% of accounting income, the income distributed through bonus shares, units or certificates as the case may be, shall not be taken into account.] Explanation.— For the purpose of this clause the expression “accounting income” means income calculated under the generally accepted Accounting Principles and verified by the auditors 5[and Special Purpose Vehicle shall have the same meaning as defined under the Real Estate Investment Trust Regulations, 2015].] 6[ ] 7[(99A) Profits and gains accruing to a person on the sale of immoveable property 8[or shares of Special Purpose Vehicle] to any type of REIT scheme upto the 30th 1 Clause (99) substituted by the Finance Act, 2008. Earlier it was substituted by SRO 728(I)/2002 dated 23.10.2002. The substituted clause (99) read as follows: “(99) Any income derived by a mutual fund or an investment company registered under the Non Banking finance companies (Establishment and Regulation) Rules, 2003, or a unit trust scheme constituted by an assets management company registered under the Assets Management companies Rules, 1995, or a Real Estate Investment Trust approved an authorized under Real Estate Investment Trust Rules, 2006, established and managed by a REIT Management Company licensed under the Real Estate Investment Trust Rules, 2006, if not less than ninety percent of its accounting income of that year, as reduced by capital gains whether realized or unrealized, is distributed amongst the unit or certificate holders or shareholders as the case may be:” The original Clause (99) read as under: “(99) Any income derived by a Mutual Fund or an investment company registered under the Investment companies and Investment Advisors Rules, 1971 or a unit trust scheme constituted by an asset management company registered under the Assets Management companies rules, 1995, if not less than ninety percent of its income of that year is distributed amongst the unit or certificate holders or shareholders, as the case may be.” 2 Words inserted by the Finance (Supplementary) Act, 2022. 3 Expression inserted by the Finance Act, 2022. 4 Full stop at the end substituted by a colon and a proviso added by the Finance Act, 2014. 5 Words inserted by the Finance (Supplementary) Act, 2022. 6 Inserted by the Finance Act, 2007. 7 Clause (99A) substituted by the Finance Act, 2021. The omitted clause read as follows: “(99A) Profits and gains accruing to a person on sale of immovable property to a 7[REIT Scheme] upto thirtieth day of June, 7[2015]7[“:”]] 7[“Provided that profit and gains on sale of immovable property to a Developmental REIT Scheme with the object of development and construction of residential buildings shall be exempt upto thirtieth day of June, 7[2023]”], 7[Provided further that the profit and gains on sale of immovable property to a rental REIT scheme shall be exempt up to the 30th day of June, 7[2023].” 8 Words inserted by the Finance (Supplementary) Act, 2022. 585 Second Schedule – Part-I_____ __________________________ day of June, 2023.] 1[Explanation.— For the purpose of this clause, Special Purpose Vehicle shall have the same meaning as defined under the Real Estate Investment Trust Regulations, 2015.] 2[(99B) Income of a Special Purpose Vehicle buying Diversified Payment Rights from the Authorized Dealers in Pakistan. Explanation.— For the purpose of this clause, Diversified Payment Rights, Special Purpose Vehicle and Authorized Dealers shall mean the ‘Diversified Payment Rights’, ‘Special Purpose Vehicle’ and ‘Authorized Dealers’, respectively, in each case, as referred in the State Bank of Pakistan‘s Circular(s) or Regulations on Diversified Payment Rights;] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 1 Explanation added by the Finance (Supplementary) Act, 2022. 2 Clause (99B) inserted by the Finance Act, 2024. 3 Clauses (100) and (101) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “(100) Any income, not being income from 3[manufacturing or] trading activity, of a modaraba registered under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (XXXI of 1980), for any assessment year commencing on or after the first day of July, 1999 3[:] Provided that not less than ninety per cent of its total profits in the year as reduced by the amount transferred to a mandatory reserve, as required under the provisions of the said Ordinance or the rules made 3[thereunder, as are distributed amongst the shareholders]: Provided further that with effect from the first day of July, 1999 for the purpose of determining the distribution of ninety per cent profits, the profits distributed through bonus certificates or shares to the certificate holders shall not be taken into account. (101) Profits and gains derived between the first day of July, 2000 and the thirtieth day of June, 3[2024] both days inclusive, by a venture capital company and venture capital fund registered under Venture Capital Companies and Funds Management Rules, 2000 3[and a Private Equity and Venture Capital Fund]” 4 Clause (102) omitted by the Finance Act, 2010. The omitted clause (102) read as follows: “(102) Any dividend received by the Investment Corporation of Pakistan from any other company which has paid or will pay tax in respect of the profits out of which such dividends are paid.” 5 Clause (102A) inserted by the Finance Act, 2006. 6 Clause (102A) omitted by the Finance Act, 2024. The omitted clause read as follows: “(102A) Income of a person as represents a subsidy granted to him by the Federal Government for the purposes of implementation of any orders of the Federal Government in this behalf.” 7 Clause (103) substituted by the Finance Act, 2008. The substituted clause (103) read as follows: 586 Second Schedule – Part-I_____ __________________________ 1[ ] 2[(103A) Any income derived from inter-corporate dividend within the group companies entitled to group taxation under section 59AA 3[ 4[ ] ] 5[“subject to the condition that return of the group has been filed for the tax year.”].] 6[ ] 7[ ] 8[ ] 9[(103D) Dividend income and long term capital gains of any venture capital fund from investments in zone enterprises as defined in 10[the Special Technology Zones Authority Act, 2021 (XVII of 2021)] for a period of ten years commencing from issuance of licence by the Authority to the zone enterprise.] 11[ ] “(103) Any distribution received by a taxpayer from the National Investment (Unit) Trust or 7[a collective Investment Scheme authorized or registered under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003] 7[or a Private Equity and Venture Capital Fund] out of the capital gains of the said Trust or Fund on which tax has already been paid.” 1 Clause (103) omitted by the Finance Act, 2021. The omitted clauses read as follows: “(103) Any distribution received by a taxpayer from a collective investment scheme registered by the Securities and Exchange Commission of Pakistan under the Non-Banking Finance Companies and Notified Entities Regulations, 2007, including National Investment (Unit) Trust or REIT Scheme or a Private Equity and Venture Capital Fund out of the capital gains of the said Schemes or Trust or Fund 1[:] ] 1[Provided that this exemption shall be available to only such mutual funds, collective investment schemes that are debt or money market funds and these do not invest in shares.]” 2 Inserted by the Finance Act, 2007. 3 Inserted by the Finance Act, 2008. 4Expression “or section 59B” omitted by the Finance Act, 2016. 5 Inserted by the Finance Act, 2015. 6Clause (103B) omitted by the Finance Act, 2013. The omitted clause (103B) read as follows: “(103B) Any dividend in specie derived in the form of shares in a company, as defined in the Companies Ordinance, 1984 (XLVII of 1984): Provided that when such shares are disposed off by the recipient, the amount representing the dividend in specie shall be taxed in accordance with provisions of section 5 of this Ordinance and the amount, representing the difference between the consideration received and the amount hereinabove, shall be treated in accordance with provisions of section 37 or section 37A, as the case may be.” 7 New Clause 103C inserted through Finance Supplementary (Second Amendment) Act, 2019 8 Clause (103C) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “(103C) Dividend income derived by a company, if the recipient of the dividend, for the tax year 8[is eligible for] group relief under section 59B, 8[ ].” 9 Inserted by the Finance Act, 2021. 10 Expression “clause (p) of section 2 of the Special Technology Zones Authority Ordinance, 2020” substituted by the Finance Act, 2022. 11 Clauses (104) and (105) omitted by the Finance Act, 2021. Earlier this amendment was made 587 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[(105B) Any income received by a taxpayer from a corporate agricultural enterprise, distributed as dividend out of tis income from agriculture.] 4[(105C) Any income derived by Kuwait Foreign Trading Contracting and Investment Company or Kuwait Investment Authority being dividend of the Pak- Kuwait Investment Company in Pakistan from the year of incorporation of Pak- Kuwait Investment Company.] 5[ ] 6[ ] (107) Any income derived by any subsidiary of the Islamic Development Bank wholly owned by it and set up in Pakistan and engaged in owning and leasing of tankers. 7[(107A) Any income derived by the Islamic Development Bank from its operations in Pakistan in connection with its social and economic development activities.] 8[ ] through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “((104) Any income derived by the Libyan Arab Foreign Investment Company being dividend of the Pak-Libya Holding Company. (105) Any income derived by the Government of Kingdom of Saudi Arabia being dividend of the Saudi-Pak Industrial and Agricultural Investment Company Limited.]” 1 Clause (105A) inserted by S.R.O. 749(I)/2004, dated 30.08.2004. 2 Clause (105A) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(105A) Any income derived by Kuwait Foreign Trading Contracting and Investment Company or Kuwait Investment Authority being dividend of the Pak-Kuwait Investment Company in Pakistan from the year of incorporation of Pak-Kuwait Investment Company.]” 3 Clause (105B) inserted by the SRO 106(I)/2008, dated 01.02. 2008. 4 Clause (105C) inserted by the Tax Laws (Amendment) Act, 2023 (XVI of 2023) dated 20.04.2023. Earlier this clause was inserted through Tax Laws (Second Amendment) Ordinance, 2022 (VI of 2022) dated 23.08.2022. 5 Clause (106) omitted by the Finance Act, 2006. The omitted clause (106) read as follows:- “(106) Any income derived by the Pakistan Water and Power Development Authority, established under the Pakistan Water and Power Development Authority Act, 1958 (West Pakistan Act. No. XXXI of 1958).” 6 Clause (106A) omitted by the Finance Act, 2006. The omitted clause (106A) read as follows: “(106A) Any income derived by the corporatized entities of Pakistan Water and Power Development Authority from the date of their creation upto the date of completion of the process of corporatization i.e. till the tariff is notified.” 7 Inserted by the Finance Act, 2011. 8 Clause (108) omitted by the Finance Act, 2003. The omitted clause (108) read as follows: “(108) Any income derived by the International Irrigating Management Institute (IIMI), Pakistan.” 588 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 9[ ] 1 Clause (109) omitted by the Finance Act, 2003. The omitted clause (109) read as follows: “(109) Any amount collected by the Civil Aviation Authority up to the thirty-first December, 1998, on account of security charges.” 2 Clause (110) omitted by the Finance Act, 2010. The omitted clause (110) read as follows: “(110) Any income chargeable under the head "capital gains", being income from the sale of modaraba certificates or any instrument of redeemable capital as defined in the Companies Ordinance, 1984 (XLVII of 1984), listed on any stock exchange in Pakistan or shares of a public company (as defined in sub-section (47) of section 2 ) and the Pakistan Telecommunications Corporation vouchers issued by the Government of Pakistan, derived by a taxpayer upto tax year ending on the thirtieth day of June, 2010.” 3 Clause (110A) omitted by the Finance Act, 2010. The omitted clause (110A) read as follows: “(110A) Any gain on transfer of a capital asset of the existing stock exchanges to new corporatized stock exchange, in the course of corporatization of an existing stock exchange.” 4 Inserted by the Finance Act, 2007. 5 Clause (110B) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: (110B) Any gain on transfer of a capital asset, being a membership right held by a member of an existing stock exchange, for acquisition of shares and trading or clearing rights acquired by such member in new corporatized stock exchange in the course of corporatization of an existing stock exchange.]” 6 Clause (110C) inserted by the Finance Act, 2018. 7 Clause (110C) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “(110C) Any gain by a person on transfer of a capital asset, being a bond issued by Pakistan Mortgage Refinance Company to refinance the residential housing mortgage market, during the period from the 1st day of July, 2018 till the 30th day of June, 2023.]” 8Clause (111) omitted by the Finance Act, 2010. The omitted clause (111) read as follows: “(111) Any income chargeable under the head “capital gains”, being income from the sale of shares of a public company derived by any foreign institutional investor as is approved by the Federal Government for the purpose of this clause.” 9 Clause (112) omitted by the Finance Act, 2002. The omitted clause (112) read as follows: “(112) Any income chargeable under the head "capital gains" derived by a person from the sale of shares of industrial units of public sector corporations by the Privatisation Commission.” 589 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[(114B) Profit and gains accruing to persons mentioned in proviso to sub-section (1) of section 236C in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of services rendered by the 7[persons specified in the said proviso].] 8[ ] 1 Clause (113) omitted by the Finance Act, 2015. The omitted clause (113) read as follows:- “(113)Any income chargeable under the head "capital gains", being income from the sale of shares of a public company set up in any Special Industrial Zone referred to in clause (126) of this Schedule, derived by a person for a period of five years from the date of commencement of its commercial production: Provided that the exemption under this clause shall not be available to a person from the sale of shares of such companies which are not eligible for exemption from tax under clause (126).” 2 Clause (114) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(114) Any income chargeable under the head "capital gains" derived by a person from an industrial undertaking set up in an area declared by the Federal Government to be a "Zone" within the meaning of the Export Processing Zones Authority Ordinance, 1980 (IV of 1980).]” 3 Clause (114A) omitted by the Finance Act, 2011. The omitted clause (114A) read as follows: “(114A) Any income chargeable under the head “capital gains”, derived by a person from sale of ships and all floating crafts including tugs, dredgers, survey vessels and other specialized craft upto tax year ending on the thirtieth day of June, 2011. 4 30th New clause (114AA) added through Finance Act, 2020 dated June, 2020. 5 Clause (114AA) omitted by the Finance Act, 2021. The omitted clause read as follows: “(114AA) Any income chargeable under the head “capital gains” derived by a resident individual from the sale of constructed residential property: Provided that exemption under this clause shall only apply, if – (a) at the time of sale, the residential property was being used for the purpose of personal accommodation by the resident individual, his spouse or dependents and for which any of the utility bills is issued in the name of such individual; (b) the land area of the property does not exceed 500 square yards in case of a house and 4000 square feet in case of a flat; and (c) exemption under this clause has not previously been availed by the individual, his spouse or dependents.] 6 New clause (114B) added through Finance Act, 2019. 7 The words “Shaheed or the person who dies in service” substituted by the Finance Act, 2024. 8 Clause (115) omitted by the Finance Act, 2003. The omitted clause (115) read as follows: “(115) Any share of income received by a taxpayer out of capital gains on which tax has been paid 590 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] by the firm of which he is a partner: Provided that exemption under this clause shall not apply in respect of any tax year commencing on or after the 1st day of July, 2002.” 1 Clause (116) omitted by the Finance Act, 2002, The omitted clause (116) read as follows: “(116) Any income derived by a taxpayer from the business of fish catching or fish processing, where the fish catching business or fish processing unit is established by the taxpayer for the first time between first day of July, 1993, and 30th day of June, 1997, for a period of five years from the date of such establishment, subject to the condition that the said date shall be determined by the Commissioner on an application made by the taxpayer.” 2 Clause (117) omitted by the Finance Act, 2021. The omitted clause read as follows: “(117) Any income derived by a person from plying of any vehicle registered in the territories of Azad Jammu and Kashmir, excluding income arising from the operation of such vehicle in Pakistan to a person who is resident in Pakistan and non-resident in those territories.] 3 Clause (118) omitted by the Finance Act, 2002. The omitted clause (118) read as follows: “(118). Profits and gains derived by a taxpayer from a pioneer industrial undertaking which is set up by 30th day of June, 1997 for a period of five years from the date of commencement of commercial production. The exemption under this clause shall apply to a pioneer industrial undertaking which- (a) is owned and managed by a company formed and registered under the Companies Act, 1913, (VII of 1913), having its registered office in Pakistan; (b) is an undertaking the income, profits and gains of which are not liable to be computed in accordance with the rules contained in the Fifth Schedule; (c) fulfils the following conditions, namely :- (i) that the undertaking is based on highly sophisticated technology; (ii) that the technology employed has fast obsolescence; (iii) that investment in the undertaking involves high risk; and (iv) that the goods produced, or to be produced, are such that neither these goods, nor identical or close substitutes thereof, are being produced in Pakistan; and (d) is approved, on an application made by the taxpayer in such form and manner and accompanied by such statements, certificates, documents and undertakings, and in accordance with such procedure, as may be prescribed, by the Central Board of Revenue.” 4Clause (119) omitted by the Finance Act, 2002. The omitted clause (119) read as follows: “(119). Profits and gains derived by a taxpayer, being a resident company, from an industrial undertaking engaged in the manufacture of electronic equipment or components thereof which is set up in the North West Frontier Province or in the Islamabad Capital Territory by 30th day of June, 1997, and is approved by the Central Board of Revenue for purposes of this clause, for a period of five years from the date of commencement of commercial production.” 5 Clause (120) omitted by the Finance Act, 2006. The omitted clause (120) read as follows: “(120) (1) Profits and gains derived by a taxpayer from an industrial undertaking for a period of five years from the date of commencement of commercial production. (2) The exemption under this clause shall apply to an undertaking which is- (a) set up between the first day of July, 1994, and the thirtieth day of June,2000, both days inclusive; (b) owned and managed by a company formed exclusively for operating the said industrial undertaking engaged in fruit processing and registered under the Companies Ordinance, 1984 (XLVII of 1984), and having its registered office in Pakistan; and (c) is not formed by splitting up or the reconstruction or reconstitution of business already in existence or by transfer to a new business of any machinery or plant in Pakistan at any time before the commencement of the new business.” 591 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 1 Clause (121) omitted by the Finance Act, 2003. The omitted clause (121) read as follows: “(121) Profits and gains derived by an assessee from an Industrial undertaking set up in an area declared by the Federal Government to be a “Zone” within the meaning of the Export Processing Zones Authority Ordinance, 1980 (IV of 1980) for the assessment years 1998-99, 1999-2000 and 2000-2001. However, exemption under this clause shall be restricted to the remaining period of exemption to which a company was entitled before the relevant amendments made by the Finance Act, 1996 (IX of 1996). 2 Clause (122) omitted by the Finance Act, 2002. The omitted clause (122) read as follows: “ (122) (1) Profits and gains derived by a taxpayer from an industrial undertaking for a period of five years from the date of commencement of commercial production. (2) The exemption under this clause shall apply to an industrial undertaking which is - (a) engaged in the manufacture of solar thermal, photovoltaic equipment for production of solar energy and solar appliances; (b) set up between the first day of July, 1997 and the thirtieth day of June, 2000; and (c) is not formed by splitting up or the reconstruction or reconstitution of business already in existence or by transfer to a new business of any machinery or plant in Pakistan at any time before the commencement of the new business.” 3 Clause (123) omitted by the Finance Act, 2002. The omitted clause (123) read as follows: “ (123) Profits and gains derived by a taxpayer from an industrial undertaking set up in an area declared by the Federal Government to be a "Zone" within the meaning of the Export Processing Zones Authority Ordinance, 1980 (IV of 1980), for a period of five years from the date of commencement of production, and for such further period as may be allowed by the Federal Government: Provided that nothing contained in this clause shall apply to an industrial undertaking set up after the 30th June, 1997.” 4 Clause (124) omitted by the Finance Act, 2002. The omitted clause (124) read as follows:: “(124) Profits and gains derived by a taxpayer up to the thirtieth day of June, 1997,from an industrial undertaking set up in the Karachi Export Processing Zone, declared by the Federal Government as a ‘Zone’ within the meaning of the Export Processing Zone, Authority Ordinance, 1980 (IV of 1980).” 5 Clause (125) omitted by the Finance Act, 2002. The omitted clause (125) read as follows:: “(125) (1) Profits and gains derived by a company for a period of five years from an industrial undertaking set up in such area and within such period and on such conditions as the Federal Government may, by notification in the Official Gazette, specify: Provided that the exemption under this sub-clause shall not be available after the 31st January, 1996, except to such companies otherwise qualifying under this clause, which have established letters of credit for the import of plant and machinery for such industrial undertaking by the 31st January, 1996. (2) Income chargeable under the head "Capital gains" derived by a taxpayer from the sale of shares representing foreign equity in such company and on such conditions as the Federal Government may, by notification in the official Gazette, specify: Provided that the exemption under this sub-clause shall not be available to a taxpayer from the sale of shares representing foreign equity in such companies which do not qualify for exemption under sub-clause (1).” 592 Second Schedule – Part-I_____ __________________________ 1[(126) Any income of a public sector university established sololy for educational purposes and not for the purposes of profit, with effect from the 1st day of July, 2013.] 2[3[(126A) Income derived by China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, 4[Gawadar] International Terminal Limited, 5[Gawadar] Marine Services Limited and 6[Gawadar] Free Zone Company Limited from 7[Gawadar] Port 8[9[and Gawadar 1 Clause (126) substituted by the Finance Act, 2014. The substituted Clause (126) read as follows: “(126) (1) Profits and gains derived by a taxpayer from an industrial undertaking set up between the first day of July, 1995, and the 31st day of December, 2002, both days inclusive, for a period of ten years beginning with the month in which the undertaking is set up or commercial production is commenced, whichever is the later: Provided that the exemption under this clause shall not be available after the 31st January, 1996, except to such taxpayers, otherwise qualifying under this clause, who have established letters of credit for the import of plant and machinery for such industrial undertaking by the 31st January, 1996: Provided further that the extension in deadline from the 30th June, 1999, to the 31st December, 2002, shall not apply to those projects whose cases are sub judice and that the Federal Government shall decide such cases in accordance with the verdict of the apex Court. (2) The exemption under this clause shall apply to an industrial undertaking which fulfils the following conditions, namely :- (a) that it is set up in such area as may be notified by the Federal Government to be a Special Industrial Zone ; (b) that it is not formed by the splitting up, or the reconstruction or reconstitution of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business; (c) that it is owned and managed by a company formed exclusively for operating such industrial undertaking and registered under the Companies Ordinance, 1984 (XLVII of 1984), having its registered office in Pakistan ; and (d) that it is not engaged in the manufacture of arms and ammunition, security printing, currency and mint, high explosives, radioactive substances, alcohol (except industrial alcohol), cotton ginning, spinning (except as part of integrated textile unit), sugar manufacturing (white), flour milling, steel re-rolling and furnace, Tobacco industry, ghee or vegetable oil industry, plastic bags (including Polyropylene, and Polyethylene), beverages (excluding fruit juices), polyester industry, automobile assembly and cement industry. 2 Clause (126 A) substituted by the Finance Act, 2014. The substituted clause (126A) read as follows: “(126A) income derived by – (a) Gawadar Free Zone Company Limited; (b) PSA Gawadar International Terminal Limited; (c) Gawadar Marine Services Limited; and (d) P.S.A. Gawadar (PTE) Ltd. from Gwadar Port operations for a period of twenty years beginning from the year in which the company is set up or commercial operation is commenced, whichever is the later.” 3 Clause (126A) substituted by the Finance Act, 2016. Substituted clause read as follows:- “(126A) income derived by China Overseas Ports Holding Company Limited from Gwadar Port operations for a period of 3[“twenty three”]years, with effect from the sixth day of February, 2007.” 4 The word “Gawadar” substituted by Finance Act 2017. 5 The word “Gawadar” substituted by Finance Act 2017. 6 The word “Gawadar” substituted by Finance Act 2017. 7 The word “Gawadar” substituted by Finance Act 2017. 8 8th The words inserted through Tax Laws (Amendment) Ordinance, 2019 dated October, 2019 9 30th Inserted through Finance Act, 2020 dated June, 2020 593 Second Schedule – Part-I_____ __________________________ Free Zone]] operations for a period of twenty-three years, with effect from the sixth day of February, 2007.] 1[(126AA)Profit and gains derived by a taxpayer from businesses set up in the 2[Gawadar] Free Zone Area for a period of twenty three years with effect from the first day of July, 2016.] 3[(126AB) Profit on debt derived by- (a) any foreign lender; or (b) any local bank having more than 75 per cent shareholding of the Government or the State Bank of Pakistan, under a Financing Agreement with the China Overseas Ports Holding Company Limited, 4[China Overseas Port Holding Company Pakistan (Private) Limited, Gawadar International Terminals Limited, Gwadar Marine Services Limited and Gawadar Free Zone Company Limited,] Gawadar International terminals Limited, Gawadar Marine Services Limited and Gawadar Free Zone Company Limited] for a period of twenty three years with effect from the first day of July, 2016;] 5[(126AC) Income derived by contractors and sub-contractors of China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, 6[Gawadar] International Terminal Limited, 7[Gawadar] Marine Services Limited and 8[Gawadar] Free Zone Company Limited from 9[Gawadar] Port 10[and Gawardar Free Zone] 11[and Gawadar Free Zone] operations for a period of twenty years, with effect from the first day of July, 2016.] 12[(126AD) (1) Any income derived by China Overseas Ports Holding Company Limited being dividend received from China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited Gwadar Marine 1 Inserted by the Finance Act, 2016. 2 The word “Gawadar” substituted by Finance Act 2017. 3 Inserted by the Finance Act, 2016. 4 The expression inserted though Finance Act, 2020 dated 30th June, 2020,with effect from 1st June,2020 5 Inserted by the Finance Act, 2016. 6 The word “Gawadar” substituted by Finance Act 2017. 7 The word “Gawadar” substituted by Finance Act 2017. 8 The word “Gawadar” substituted by Finance Act 2017. 9 The word “Gawadar” substituted by Finance Act 2017. 10 The expression inserted though Finance Act, 2020 dated 30th June, 2020, with effect from 1st June, 2020 11 Words inserted through Tax Laws (Amendment) Ordinance 2019 dated 8th October, 2019 12 Inserted by the Finance Act, 2016. 594 Second Schedule – Part-I_____ __________________________ Services Limited and Gwadar Free Zone Company Limited for a period of twenty- three years with effect from the first day of July, 2016. (2) Any income derived by China Overseas Ports Holding Company Pakistan (Private) Limited being dividend received from, Gwadar International Terminal Limited Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty-three years with effect from the first day of July, 2016.] 1[ ] 2[(126B) Profits and gains derived by a refinery— (a) from new deep conversion refinery of at least 100,000 barrels per day for which approval is given by the Federal Government before the 31st day of December, 2021; or (b) for the purpose of upgradation, modernization or expansion project of any existing refinery which makes undertaking to the Federal Government in writing before the 31st day of December, 2021 in this regard: Provided that this exemption shall be available for a period of twenty years beginning from the date of commencement of commercial production in the case of new refinery and ten years from the date of completion of up gradation, modernization or expansion project of existing refinery. Provided further that the exemption under this clause shall only be available to those refineries whose products fulfill Euro 5 standards.] 3[ ] 4[ ] 1 Clause (126B) inserted by S.R.O. 1100(I)/2007, dated 10.11.2007. 2Clause (126B) substituted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The substituted clause read as follows: “(126B) Profit and gains derived by 2[Khalifa Coastal Refinery] for a period of twenty years beginning in the month in which the refinery is setup or commercial production is commenced, whichever is the later.]” 3 Inserted by the Finance Act, 2018. 4Clause (126BA) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(126BA) Profits and gains derived by a refinery set up between the 1st day of July, 2018 and the 30th day of June, 2023 with minimum 100,000 barrels per day production capacity for a period of twenty years beginning in the month in which the refinery is set up or commercial production is commenced, whichever is later. Exemption under this clause shall also be available to existing refineries, if— (a) existing production capacity is enhanced by at least 100,000 barrels per day; (b) the refinery maintains separate accounts for income arising from aforesaid additional production capacity; and (c) the refinery is a deep conversion refinery.]” 595 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[(126D) Profit and gains derived by a taxpayer from an industrial undertaking set up in the 4[Gawadar] declared by the Federal Government to be a Zone within the meaning of Export Processing Zone Authority Ordinance, 1980 (IV of 1980) as Export Processing Zone, 5[Gawadar], for a period of ten years beginning with the month and year in which the industrial undertaking is set up or commercial operation commenced, whichever is later.] 6[(126E) Income derived by a zone enterprise as defined in the Special Economic Zones Act, 2012 (XX of 2012) for a period of ten years starting from the date the developer certifies that the zone enterprise has commenced commercial operation 7[or up to the 30th day of June, 2035, whichever is earlier] and for a period of ten years to a developer of zone starting from the date of signing of the development agreement in the special economic zone as announced by the Federal Government] 8[: Provided that this clause shall also apply to a co-developer as defined in Special Economic Zone Rules, 2013 subject to the condition that a certificate has been furnished— (a) by the developer that he has not claimed exemption under this clause and has relinquished his claim in favour of the co-developer; and (b) by the Special Economic Zone Authority validating that the developer has not claimed exemption under this clause and has relinquished claim in favour of the co-developer.] 1 Inserted by S.R.O. 741(I)/2008, dated 10.07.2008. 2Clause (126C) omitted by the Finance Act, 2021. The omitted clause read as follows: “(126C) (1) Profits and gains derived by a taxpayer from an industrial undertaking set up in Larkano Industrial Estate between the 1st day of July, 2008 and the thirtieth day of June, 2013, both days inclusive, for a period of ten years beginning with the month in which the industrial undertaking is set up or commercial production commenced, whichever is the later. (2) Exemption under this clause shall apply to an industrial undertaking which is owned and managed by a company registered under the Companies Ordinance 1984 (XLVII of 1984) and formed exclusively for operating the said undertaking.] 3 29th Inserted by S.R.O. 606(I)/2009, dated June, 2009. 4 The word “Gawadar” substituted by Finance Act 2017. 5 The word “Gawadar” substituted by Finance Act 2017. 6 Clause (126E) substituted by the Finance Act, 2013. The substituted clause (126E) read as follows: “(126E) Corporate income tax holiday for a period of five years for projects from the date of start of commercial operations, and for developers of the Zone for a period of ten years from the date of start of developmental activity in the Special Economic Zones as announced by the Federal Government.” 7 Expression inserted by the Finance Act, 2025. 8 30th The new proviso inserted though Finance Act, 2020 dated June, 2020 596 Second Schedule – Part-I_____ __________________________ 1[ ] 2[(126EA) Profits and gains derived by – (a) zone developer as defined in the Special Technology Zones Authority Act, 2021 (XVII of 2021) from development and operations of the zones for a period of ten years starting from the date of signing of the development agreement; (b) zone Enterprises as defined in the Special Technology Zones Authority Act, 2021 (XVII of 2021) for a period of ten years from the date of issuance of license by the Special Technology Zone Authority 3[or up the 30th day of June, 2035, whichever is earlier]; and (c) Special Technology Zones Authority established under the Special Technology Zones Authority Act, 2021 (XVII of 2021).] 4[ ] 5[ ] 6[ ] 1 Clause (126EA) inserted by the Finance Act, 2021. 2 The Clause (126EA) substituted by the Finance Act 2022. Substituted clause read as follows: “(126EA) Profits and gains derived by— (a) zone developer as defined in section 2 of the Special Technology Zones Authority Ordinance, 2020 from development and operations of the zones for a period of ten years starting from the date of signing of the development agreement; (b) profits and gains of Zone Enterprises as defined in section 2 of the Special Technology Zones Authority Ordinance, 2020 for a period of ten years from the date of issuance of license by the Special Technology Zone Authority; and (c) Special Technology Zones Authority established under the Special Technology Zones Ordinance 2020.” 3 Expression inserted by the Finance Act, 2025. 4 Clause “(126F)” omitted by the Finance Act, 2015. The omitted clause (126F) read as follows:- “(126F) Profits and gains derived by a taxpayer located in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA for a period of three years starting from the tax year 2010: Provided that this concession shall not be available to the manufacturers and suppliers of cement, sugar, beverages and cigarettes.” 5 Clause (126G) added by S.R.O 281(I)/2014, dated 10.04.2014. 6Clause (126G) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “((126G) Profits and gains derived for a period of five years from the date of start of commercial production by the following companies from the projects mentioned against each that have been declared ‘Pioneer Industry’ by Economic Coordination Committee of the Cabinet:- (i) M/s. Astro Plastics (Pvt) Limited from their Biaxially Oriented Polyethylene Terephthalate (BOPET) Project; and (ii) M/s. Novatex Limited from their Biaxially Oriented Polyethylene Terephthalate (BOPET) Project.] 597 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 9[ ] 10[ ] 1 Clause (126H) inserted by the Finance Act, 2014. 2Clause (126H) omitted by the Finance Act, 2021. The omitted clause read as follows: “(126H) Profits and gains derived by a taxpayer, from a fruit processing or preservation unit set up in Balochistan Province, Malakand Division, Gilgit Baltistan and FATA between the first day of July, 2014 to the thirtieth day of June, 2017, both days inclusive, engaged in processing of locally grown fruits for a period of five years beginning with the month in which the industrial undertaking is set up or commercial production is commenced, whichever is later.] 3 Clause “(126I)”added by the Finance Act, 2015. 4 Clause (126I) omitted by the Finance Act, 2021. The omitted clause read as follows: “(126I) Profits and gains derived by a taxpayer, from an industrial undertaking set up by 31st day of December, 2016 and engaged in the manufacture of plant, machinery, equipment and items with dedicated use (no multiple uses) for generation of renewable energy from sources like solar and wind, for a period of five years beginning from first day of July, 2015. 4[:] [Provided that this clause shall also apply to such undertaking set up between the 1st March 2019 and the 30th June, 2023 for a period of five years beginning from the date such industrial undertaking is set up.] 5 Clause “(126J)” added by the Finance Act, 2015. 6Clause (126J) omitted by the Finance Act, 2021. The omitted clause read as follows: “(126J) Profits and gains derived by a taxpayer, from an industrial undertaking set up between 1st day of July, 2015 and 30th day of June, 2016 engaged in operating warehousing or cold chain facilities for storage of agriculture produce for a period of three years beginning with the month in which the industrial undertaking is set up or commercial operations are commenced, whichever is later.]” 7 Clause “(126K)” added by the Finance Act, 2015. 8Clause (126K) omitted by the Finance Act, 2021. The omitted clause read as follows: “(126K) Profits and gains derived by a taxpayer, from an industrial undertaking set up between the first day of July, 2015 and the 30th day of June, 2017 for establishing and operating a halal meat production unit, for a period of four years beginning with the month in which the industrial undertaking commences commercial production. The exemption under this clause shall apply if the industrial undertaking is – (a) owned and managed by a company formed for operating the said halal meat production unit and registered under the Companies Ordinance, 1984 (XLVII of 1984), and having its registered office in Pakistan; (b) not formed by the splitting up, or the re construction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business; and (c) halal meat production unit is established and obtains a halal certification within the period between the first day of July, 2015 and the 30th day of June, 2017.]” 9 Clause “(126L)” added by the Finance Act, 2015. 10Clause (126L) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: 598 Second Schedule – Part-I_____ __________________________ 1[(126M) Profits and gains derived by a taxpayer from a transmission line project set up in Pakistan on or after the1st day of July, 2015 for a period of ten years. The exemption under this clause shall apply to such project which is— (a) owned and managed by a company formed for operating the said project and registered under the 2[Companies Act, 2017 (XIX of 2017)], and having its registered office in Pakistan; (b) not formed by the splitting up, or the reconstruction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business; and (c) owned by a company fifty per cent of whose shares are not held by the Federal Government or Provincial Government or a Local Government or which is not controlled by the Federal Government or a Provincial Government or a Local Government: Provided that the exemption under this clause shall not apply to projects set up on or after the thirtieth day of June, 3[2022].] 4[ ] 5[ ] “(126L) Profits and gains derived by a taxpayer, from an industrial undertaking set up in the Provinces of Khyber Pukhtunkhwa and Baluchistan between 1st day of July, 2015and 30th day of June, 2018 for a period of five years beginning with the month in which the industrial undertaking is set up or commercial production is commenced, whichever is later: Provided that exemption under this clause shall be admissible where— (a) the industrial undertaking is setup between the first day of July, 2015 and 30th day of June,2018, both days inclusive; and (b) the industrial undertaking is not established by the splitting up or reconstruction or reconstitution of an undertaking already inexistence or by transfer of machinery or plant from an undertaking established in Pakistan at any time before 1st July 2015.] 1 Clause “(126M)” added by the Finance Act, 2015. 2 The expression “Companies Ordinance, 1984 (XLVII of 1984)” substituted by the Finance Act, 2021. 3 The figure “2018” substituted by the Finance Act, 2021. Earlier this substitution was made through Tax Laws (Amendment) Ordinance, 2021. 4 Clause “(126N)” added by the Finance Act, 2015. 5Clause (126N) omitted by the Finance Act, 2021. The omitted clause read as follows: “(126N) Profits and gains derived by a taxpayer from an industrial undertaking, duly certified by the Pakistan Telecommunication Authority, engaged in the manufacturing of cellular mobile phones, for a period of five years, from the month of commencement of commercial production: Provided that the industrial undertaking has been setup and commercial production has commenced between the first day of July, 2015 and the thirtieth day of June, 2017 and the industrial undertaking is not formed by the splitting up, or the reconstruction or reconstitution, of a business 599 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] already inexistence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan 5[:]” 1 New clause (126O) inserted through Finance Supplementary (Second Amendment) Act, 2019 2Clause (126O) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(126O) Profits and gains of a company from a green field industrial undertaking for a period of five years incorporated on or after the first day of July, 2019 provided that the green field industrial undertaking is not formed by the splitting up or reconstitution of an undertaking already in existence or by transfer of machinery or plant from an undertaking established in Pakistan before the commencement of the new business.]” 3 Clause (127) omitted by the Finance Act, 2002. The omitted clause (127) read as follows: “ (127) (1) Profit and gains derived by a taxpayer from an industrial undertaking set up between the first day of July, 1995, and the thirtieth day of June,1997, both days inclusive, for a period of eight years beginning with the month in which commercial production is commenced. (2) The exemption under this clause shall apply to an industrial undertaking which fulfils the following conditions, namely :- (i) It is set up in a rural area i.e., outside the limits of any municipal corporation, municipal committee, cantonment board or Islamabad Capital Territory and in no case within the following areas namely :- (a) up to ten kilometres from the municipal or cantonment limits of Karachi or Lahore; and (b) up to ten kilometres from the existing limits of municipal corporations or cantonments boards; Explanation: The distance between an industrial undertaking and the outer boundary of a municipal or cantonment limit shall be measured in a straight line on horizontal plane as provided in section 11 of the General Clauses Act, (X of 1897), and the said distance, wherever required, will be defined and determined by the concerned officer of the District Administration. (ii) It is not formed by the splitting up, or the reconstruction or reconstitution of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business. (iii) It is owned and managed by a company formed for operating such industrial undertaking and registered under the Companies Ordinance, 1984 (XLVII of 1984), having its registered office in Pakistan. (iv) It is an undertaking engaged in any of the following agro-based industries:- (a) cultivation, production, processing and preservation of flowers and ornamental plants; (b) cattle, sheep and goat forming for the production and processing of meat. It will cover rearing, sale and slaughtering of animals and processing and packing of meat and meat products; (c) dairy farming for the production of milk; (d) processing, packing, preservation and canning of milk and milk products with or without addition of other things; (e) processing, packing, preservation and canning of meat and meat products; (f) processing, packing, preservation and canning of fruits and vegetable; (g) inland farming and preservation, packing and canning of fish and seafood with or without addition of other things; (h) cultivation, production and multiplication of high yielding seeds of cereals, pulses, vegetables, fruits, oilseeds, and cash crops like sugarcane, cotton coca, coffee, tea, herbs and spices; (i) cultivation, production and extraction of edible oils; (j) poultry farming and processing, packing, preservation and canning of poultry meat with or without addition of other things; and (k) manufacture of cattle and poultry feeds.” 600 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] (132) Profits and gains derived by a taxpayer from an electric power generation project set up in Pakistan on or after the 1st day of July, 1988. The exemption under this clause shall apply to such project which is— (a) owned and managed by a company formed for operating the said project and registered under the 5[Companies Act, 2017 (XIX of 2017), and 1 Clause (128) omitted by the Finance Act, 2002. The omitted clause (128) read as follows: “ (128) Any income accruing or arising outside Pakistan to an industrial undertaking set up in an area declared by the Federal Government to be a `Zone' within the meaning of the Export Processing Zones Authority Ordinance, 1980 (IV of 1980), provided the said income accrues or arises from such activities of the said undertaking as are approved by the Federal Government: Provided that nothing contained in this clause shall apply to an industrial undertaking set up after the 30th June, 1997.” 2 Clause (129) omitted by the Finance Act, 2003. The omitted clause (129) read as follows: “(129) Any income of Saudi-Pak Industrial and Agricultural Investment Company Limited in Pakistan for a period of twenty years commencing with the thirty-first day of December, 1982.” 3 Clause (130) omitted by the Finance Act, 2002. The omitted clause (130) read as follows: “(130) Any income of Pakistan-Kuwait Investment Company in Pakistan for a period of twenty years from the date of its incorporation.” 4Clause (131) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(131) Any income- (a) of company registered under the Companies Ordinance 1984 (XLVII of 1984), and having its registered office in Pakistan, as is derived by it by way of royalty, commission or fees from a foreign enterprise in consideration for the use outside Pakistan of any patent, invention, model, design, secret process or formula or similar property right, or information concerning industrial, commercial or scientific knowledge, experience or skill made available or provided to such enterprise by the company or in the consideration of technical services rendered outside Pakistan to such enterprise by the company under an agreement in this behalf, or (b) of any other taxpayer as is derived by him, in the income year relevant to assessment year beginning with the first day of July, 1982 and any assessment year thereafter, by way of fees for technical services rendered outside Pakistan to a foreign enterprise under an agreement entered into in this behalf :- Provided that— (i) such income is received in Pakistan by or on behalf of the said company or other taxpayer, as the case may be, in accordance with the law for the time being in force for regulating payments and dealings in foreign exchange ; and (ii) where any income as aforesaid is not brought into Pakistan in the year in which it is earned and tax is paid thereon, an amount equal to the tax so paid shall be deducted from the tax payable for the year in which it is brought into Pakistan and, where no tax is payable for that year or the tax payable is less than the amount to be deducted, the whole or such part of the said amount as is not deducted shall be carried forward and deducted from the tax payable for the year next following and so on.” 5 The expression “Companies Ordinance, 1984 (XLVII of 1984)” substituted by the Finance Act, 2021. 601 Second Schedule – Part-I_____ __________________________ having its registered office in Pakistan; (b) not formed by the splitting up, or the reconstruction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business; and (c) owned by a company fifty per cent of whose shares are not held by the Federal Government or Provincial Government or a 1[Local Government] or which is not controlled by the Federal Government or a Provincial Government or a 2[Local Government]: Provided that the condition laid down in sub-clause (a) shall not apply to the Hub Power Company Limited 3[:] 4[Provided further the exemption under this clause shall not apply to oil fired power plants setup 5[between 22nd October, 2002 and 30th June, 2006] 6[but shall apply to Dual Fuel (Oil/Gas) power projects set up on or after the first September, 2005] 7[:] ] 8[Provided further that the exemption under this clause shall be available to companies registered in Pakistan or Azad Jammu and Kashmir owning and managing Hydel Power Projects, set up in Azad Jammu and Kashmir or Pakistan 9[:]] 10[Provided further that exemption under this clause shall also be available to the expansion projects of the existing Independent Power Projects already in operation11[“:”] 12[Provided also that conditions laid down in sub-clause (b) 1 The words “local authority” substituted by the Finance Act, 2008. 2 The words “local authority” substituted by the Finance Act, 2008. 3 Full stop substituted by S.R.O. 940(I)/2002, dated 19.12.2002. 4 Inserted by the Finance Act, 2007. 5 22nd The words, figures and comma “on or after October, 2002” substituted by the Finance Act, 2006. 6 Inserted by S.R.O. 1009(I)/2005 dated 26.09.2005. 7 Full stop substituted by the Finance Act, 2007. 8 Inserted by the Finance Act, 2007. 9 Full stop substituted by S.R.O. 405(I)/2008, dated 26.04.2008. 10 Added by S.R.O. 405(I)/208, dated 26.04.2008. 11 Full stop substituted by S.R.O. 248(I)/2015 dated 27.03.2015. 12 Proviso added by S.R.O. 248(I)/2015 dated 27.03.2015 602 Second Schedule – Part-I_____ __________________________ shall not apply to electric power generation project formed by the splitting up, or the reconstruction or the reconstitution of an electric power generation business already in existence and availing exemption under this clause] 1[: 2[Provided further that the exemption under this clause shall be available to persons, who enter into agreement or to whom letter of intent is issued by the Federal or Provincial Government for setting up an electric power generation project in Pakistan on or before the 30th day of June, 2021 and who obtains the letter of support on or before the 30th day of June, 2023.] 3[ ] 4[ ] 5[(132AA) Profits and gains derived from sale of electricity by National Power Parks Management Company (Private) Limited or demerged entities of National Power Parks Management Company (Private) Limited commencing from the commercial operation dates and continuing after the date of change of ownership as a result of privatization by the Privatization Commission of Pakistan.] 6[ ] 7[ ] 8[(132C) Profits and gains derived by a taxpayer from a bagasse/biomass based cogeneration power project having one or more boilers of not less than 60 bar (kg/CM3) pressure each, commissioned after the first day of January 2013.] 1 Full stop substituted and proviso added by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. 2 Proviso substituted by the Finance (Supplementary) Act, 2022. The substituted proviso read as follows: “Provided further that no exemption under this clause shall be available to persons, who enter into agreement or to whom letter of intent is issued by Federal or Provincial Government for setting up an electric power generation project in Pakistan after the 30th day of June, 2021.” 3 Inserted by S.R.O. 650(I)/2009, dated 09.07.2009. 4Clause (132A) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(132A) Profit and gains derived by Bosicor Oil Pakistan Limited for a period of seven and half years beginning from the day on which the refinery is set up or commercial production is commenced whichever is later.]” 5 Inserted by the Finance Act, 2021. 6 Clause (132B) inserted by the Finance Act, 2014. 7Clause (132B) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(132B) Profits and gains derived by a taxpayer from a coal mining project in Sindh, supplying coal exclusively to power generation projects.]” 8 Clause (132C) inserted by the Finance Act, 2021. 603 Second Schedule – Part-I_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 1 Clause (133) substituted by the Finance Act, 2003. The substituted clause (133) read as follows: “(133) Income from export of computer software and its related services developed in Pakistan: Provided that the exemption under this clause shall not be available after the 30th day of June, 2016.” 2Clause (133) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(133) Income from exports of computer software or IT services or IT enabled services upto the period ending on 30th day of June, 2[ ] 2[2025:] 2[“Provided that eighty per cent of the export proceeds is brought into Pakistan in foreign exchange remitted from outside Pakistan through normal banking channels.”] Explanation.- For the purpose of this clause – (a) “IT Services” include software development, software maintenance, system integration, web design, web development, web hosting, and network design, and (b) “IT enabled services” include inbound or outbound call centres, medical transcription, remote monitoring, graphics design, accounting services, HR services, telemedicine centers, data entry operations 2[, locally produced television programs] and insurance claims processing.] 3 Clause (133A) omitted by the Finance Act, 2008. The omitted clause (133A) read as follows: “(133A) Any income derived by an individual from transfer of his membership rights or shares of a stock exchange in Pakistan along with a room in the Stock Exchange to a company at any time between the first day of July, 2005, and the thirtieth day of June, 2008.” 4 Clause (134) omitted by the Finance Act, 2003. The omitted clause (134) read as follows: “(134) Any amount received on encashment of any certificate issued in pursuance of the US Dollar Bearer Certificate Rules, 1991: Provided that exemption under this clause shall not be available in respect of certificates purchased on or after the 15 June, 1995.” 5 Clause (135) omitted by the Finance Act, 2014. The Omitted clause (135) read as follows: “(135) Any amount received on encashment of Special US Dollar Bond issued under the Special US Dollar Bonds Rules, 1998.” 6 Inserted by S.R.O. 64(I)/2012, dated 27.01.2012. 7Clauses (135A) and (136) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “(135A)Any income derived by a non-resident from investment in OGDCL exchangeable bonds issued by the Federal Government.] (136) Any income of a special purpose vehicle as defined in the Asset Backed Securitization Rules, 1999 made under the Companies Ordinance, 1984 (XLVII of 1984): Provided that, if there is any income which accrues or arises in the accounts of the special purpose vehicle, after completion of the process of the securitization7[“or redemption of sukuks”], it shall be returned to the Originator as defined by the said rules within the income year next following the year in which the income has been determined and such income shall be taxable in the hands of the Originator.]” 8 Clause (137) omitted by the Finance Act, 2006. The omitted clause (137) read as follows: 604 Second Schedule – Part-I_____ __________________________ 1[ ] 2[(139) (a) The benefit represented by free provision to the employee of medical treatment or hospitalization or both by an employer or the reimbursement received by the employee of the medical charges or hospital charges or both paid by him, where such provision or reimbursement is in accordance with the terms of employment: Provided that National Tax Number of the hospital or clinic, as the case may be, is given and the employer also certifies and attests the medical or hospital bills to which this clause applies; (a) any medical allowance received by an employee not exceeding ten per cent of the basic salary of the employee if free medical treatment or hospitalization or reimbursement of medical or hospitalization charges is not provided for in the terms of employment; or 3[ ] “ (137) Income of Fugro Geodetic Limited from execution of contract with the Government of Pakistan for survey for the establishment of the Continental Shelf of Pakistan.” 1 Clause (138) omitted by the Finance Act, 2008. The omitted clause (138) read as follows: “(138) Any income referred to in Section 3.4 (a) of the Facilitation Agreement between the President of the Islamic Republic of Pakistan and the taxpayer purchasing the KotAddu Power Station from Pakistan Water and Power Development Authority for a period of ten years from 28th June, 1996; provided, however, that the exemption under this clause shall only be available subject to the business of the said taxpayer being restricted to owing and operating the KotAddu power station.” 2 Clause (139) substituted by the Finance Act, 2003. The substituted clause (139) read as follows: “(139) (a) Any benefit, reimbursement received by an employee on account of medical charges or hospital charges, or both, incurred by an employee, as provided for under the terms of the employee’s employment agreement; or where such benefit for reimbursement, medical charges or hospital charges, or both are not provided for under the terms of employment’s agreement, medical allowance upto maximum of 10% of the basic pay for the year: Provided that National Tax Number of the hospital or clinic, as the case may be, is given and the employer also certifies and attests the medical or hospital bills to which this clause applies; or (b) Any amount paid by a taxpayer, being an individual and resident in Pakistan, by way of personal expenditure on medical service, to the extent of 10% of taxable income returned in return of income or Rs 30,000 whichever is lower. Provided that the receipts in respect of such expenditure being name, National Tax Number and complete address of the medical practitioners are furnished along with his return of income.” 3 Sub-clause (c) omitted by the Finance Act, 2006. The omitted sub-clause (c) read as follows: “(c) any amount paid during a year by a taxpayer, being a resident individual, by way of personal expenditure on medical service to the extent of ten per cent of taxable income declared in his return of income for the said tax year or thirty thousand rupees – whichever is the less: Provided that the receipts of such expenditure bearing name, National Tax Number and complete address of the medical practitioners are furnished along with his return of income.” 605 Second Schedule – Part-I_____ __________________________ 1[(140) All payments on account of principal, interest, or fees received by the Overseas Private Investment Corporation (OPIC), from development project undertaken in pursuance to the Investment Incentive Agreement signed between the Government of Pakistan and the Government of the United States of America, dated 18th November, 1997.] 2[(140A) Any profit on debt received by Japan International Cooperation Agency (JICA), from Islamabad-Burhan Transmission Reinforcement Project (Phase-I) undertaken in pursuance to the loan agreement for Islamabad-Burhan Transmission Reinforcement Project (Phase-I).] 3[ ] 4[ ] 5[(142) Income from social security contributions derived by Balochistan Employees‘ Social Security Institution, Employees‘ Social Security Institution Khyber Pakhtunkhwa, Punjab Employees‘ Social Security Institution and Sindh Employees‘ Social Security Institution. Explanation.— For the removal of doubt, it is clarified that all incomes other than social security contributions shall not be exempt;] 6[ ] 7[ ] 8[ ] 9[ ] 1 Added by S.R.O. 1353(I)/2012, dated 31.10.2012. 2 Inserted by the Finance Act, 2017 3 Clause “(141)” added by the Finance Act, 2015. 4Clause (141) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(141) Profit and gains derived by LNG Terminal Operators and Terminal Owners for a period of five years beginning from the date when commercial operations are commenced.”]”.]” 5 Clause “(142)” added by the Finance Act, 2015. 6 Added by the Finance Act, 2017 7Clause (143) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(143) Profit and gains derived by a start–up as defined in clause (62A) of section 2 for the tax year in which the start-up is certified by the Pakistan Software Export Board and the following two tax years.]” 8 Clauses (144) and (145) added by S.R.O. 887(I)/2018, dated 23.07.2018. 9 Clauses (144) and (145) omitted by S.R.O. 1213(I)/2018 dated 05.10.2018.The omitted clauses read as under: “(144) Profits and gains derived by individuals from any source in the districts of Chitral, Dir and Swat (which includes Kalam), the former Tribal Area in Kohistan district, Malakand former Protected Areas the former Tribal Area adjoining Mansehra district, the former State of Amb, Zhob district, Loralai district 606 Second Schedule – Part-I_____ __________________________ 1[(145A) Any income which was not chargeable to tax prior to the commencement of the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018) of any individual domiciled or company and association of persons resident in the Tribal Area forming part of the Provinces of Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Constitution with effect from the 1st day of June, 2018 to the 30th day of June, 2[ ] 3[ ] 4[2026] (both days inclusive).] 5[ ] 6[ ] 7[(147) Any income derived by the Federal Government Employees Housing Authority and Naya Pakistan Housing and Development Authority for the tax year 2020 and the following four tax years.] 8[ ] (excluding Duki Tehsil), Dalbandin Tehsil of Chagai district and Marri and former Bugti Tribal territories of Sibi district, former Tribal Areas adjoining the district of Peshawar, Kohat, Bannu, Lakki Marwat, Dera Ismail Khan, Tank as well as former Tribal Areas i.e. Bajaur Agency, Orakzai Agency, Mohmand Agency, Khyber Agency, Kurram Agency, North Waziristan Agency and South Waziristan Agency, provided that existing business set ups register themselves with field offices of FBR by 30th September, 2018. “(145) Profits and gains of existing businesses conducted by association of persons and companies from any source in the districts of Chitral, Dir and Swat (which includes Kalam), the former Tribal Area in Kohistan district, Malakand former Protected Areas the former Tribal Area adjoining Mansehra district, the former State of Amb, Zhob district, Loralai district (excluding Duki Tehsil), Dalbandin Tehsil of Chagai district and Marri and former Bugti Tribal territories of Sibi district, former Tribal Areas adjoining the district of Peshawar, Kohat, Bannu, Lakki Marwat, Dera Ismail Khan, Tank as well as former Tribal Areas i.e. Bajaur Agency, Orakzai Agency, Mohmand Agency, Khyber Agency, Kurram Agency, North Waziristan Agency and South Waziristan Agency, provided that existing business set ups register themselves with field offices of FBR by 30th September, 2018. Provided further that the exemption under this clause shall be restricted to the association of persons and companies whose registered offices are in the aforesaid Areas.] 1 New clause (145A) added through Finance Act, 2019. 2 The figure “2023” substituted by Finance Act, 2023. 3 The figure “2024” substituted by Finance Act, 2024. 4 The figure “2025” substituted by Finance Act, 2025. 5 Added by S.R.O. 1213(I)/2018, dated 05.10.2018. 6 Clause (146) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(146) Any income which was not chargeable to tax prior to the commencement of the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018) of any individual domiciled or company and association of persons resident in the Tribal Areas forming part of the Provinces of Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Constitution with effect from the 1st day of June, 2018 to the 30th day of June, 2023 (both days inclusive).] 7 30th New clause (147) added though Finance Act, 2020 dated June, 2020. 8 Clause (148) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(148) Any income derived by Islamic Naya Pakistan Certificates Company Limited (INPCCL)”. 607 Second Schedule – Part-I_____ __________________________ 1[(149) Any sum— (i) remitted to Pakistan through banking channels in foreign currency received by an international buying house from its non-resident principal to meet its expenses in Pakistan; and (ii) chargeable under the head “Salary” received by a person who, not being a citizen or resident of Pakistan, is engaged as an expert by an international buying house. Explanation.—For the purpose of this clause international buying house means persons acting as buying offices, buyers’ agents, or representatives of international buyers for facilitating exports from Pakistan and are registered as liaison offices with Board of Investment or companies registered with SECP. Provided that such buying houses act as cost centers with the sole purpose to bring export orders to Pakistan on behalf of their principals and do not enter into any local business transactions in Pakistan and their expenses are remitted to Pakistan.] 2[(150) Income derived by Siyahkalem Engineering Construction Industry and Trade Company Limited 3[and Alteraz Engineering Consultant] from contract dated 23rd day of May 2017 with Earthquake Reconstruction and Rehabilitation Authority, financed by the Saudi Fund for Development with effect from tax year 2017. (151) Any income derived by a person from cinema operations for five years from the commencement of cinema operations 4[: Provided that the exemption under this clause shall be available to a person till 30th June, 2030 or five years from commencement of cinema operations whichever is earlier.] 5[ ] (153) Profits and gains from the production of feature film derived between the first day of July, 2022 and the thirtieth day of June, 2027 both days inclusive by a resident producer or a resident production house.] 1 Clause (149) inserted by the Finance Act, 2021. 2 Clause (150), (151), (152) and (153) added by the Finance Act, 2022. 3 Words inserted by the Finance Act, 2023. 4 Full stop substituted with a colon and thereafter a new proviso added by the Finance Act, 2025. 5 Clause (152) omitted by the Finance Act, 2025. The omitted clause read as follows: “(152) Profits and gains derived between the first day of July, 2022 and the thirtieth day of June, 2025 both days inclusive, by a venture capital company and venture capital fund registered under relevant Venture Capital Companies and Funds Management Rules issued by Securities and Exchange Commission of Pakistan.” ” 608 Second Schedule – Part-II_____ __________________________ PART II REDUCTION IN TAX RATES Incomes or classes of income, or persons or classes of persons, enumerated below, shall be liable to tax at such rates which are less than the rates specified in the First Schedule, as are specified hereunder: 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 1 Clause (1) omitted by the Finance Act, 2005. The omitted clause (1) read as follows: “(1) The rates of income tax, as specified in the First Schedule and as applicable to the profits and gains derived by a resident company from an undertaking setup between the First day of July, 1981 and the Thirtieth day of June, 1998, both days inclusive, and engaged in the exploration and extraction of such mineral deposits, other than petroleum, as is specified by the Federal Government by a notification in the Official Gazette, shall be reduced by 50% for a period of five years immediately next following the period of five years from the date of commercial production.” 2 Clause (2) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(2) Any income of persons whose profits or gains from business are computed under the Fifth Schedule to this Ordinance as is derived from letting out to other similar persons any pipeline for the purpose of carriage of petroleum shall be charged to tax at the same rate as is applicable to such persons in accordance with the provisions of the said Schedule.” 3 Clause (3) substituted by the Finance Act, 2016. Substituted clause read as follows:- (3) The tax in respect of income from services rendered 3[and construction contracts] outside Pakistan shall be charged at the rate of one per cent of the gross receipts, provided that 3[receipts from services and income from contracts] are brought into Pakistan in foreign exchange through normal banking channel. 4 Clause (3) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(3) (a) The tax in respect of income from services rendered outside Pakistan and construction contracts executed outside Pakistan shall be charged at the rates as specified in sub-clause (b), provided that receipts from services and income from contracts are brought into Pakistan in foreign exchange through normal banking channel. (b)The rates in respect of income from services rendered outside Pakistan shall be 50% of the rates as specified in clause (2) of Division III of Part III of the First Schedule and the rates in respect of contracts executed outside Pakistan shall be 50% of the rates as specified in clause (3) of Division III of Part III of the First Schedule.”]” 5 Clause (3A) omitted by the Finance Act, 2014. The omitted clause (3A) read as follows: “(3A) The tax in respect of income from construction contracts out side Pakistan shall be charged at the rate of one per cent of the gross receipts provided that such income is brought into Pakistan in foreign exchange through normal banking channel.” 6 Clause (3B) inserted by the Finance Act, 2016. 533 Second Schedule – Part-II_____ __________________________ 1[ ] 2[ ] 3[ ] 4[(5A) The rate of tax to be deducted under sub-section (2) of section 152, in respect of payments 5[from] profit on debt payable to a non-resident person having no permanent establishment in Pakistan, 6[other than those covered under clauses (78) and (79) of Part I of the Second Schedule,] shall be 10% of the gross amount paid 7[:] 8[Provided that tax deducted on profit on debt from debt instruments, Government securities including treasury bills and Pakistan Investment Bonds shall be final tax on profit on debt payable to a non-resident person having no permanent establishment in Pakistan and the investments are exclusively made through a Special Rupee Convertible Account maintained with a Bank in Pakistan.] 1 Clause (3B) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(3B) The income of Pakistan Cricket Board derived from sources outside Pakistan including media rights, gate money, sponsorship fee, in-stadium rights, out-stadium rights, payments made by International Cricket Council, Asian Cricket Council or any other Cricket Board shall be taxed at a rate of four per cent of the gross receipts from such sources: Provided that Pakistan Cricket Board may opt to pay tax at the rate of four per cent of the gross receipts from tax year 2010 and onwards: Provided further that this option shall be available subject to withdrawal of appeals, references and petitions on the issue of tax rate pending before any appellate forum or tax authority: Provided further that the outstanding tax liability payable under this clause up to tax year 2015 is paid by 30th June, 2016.”] 2 Clause (4) omitted by the Finance Act, 2003. The omitted clause (4) read as follows: “(4) In the case of an industrial undertaking set up in an area declared by the Federal Government to be a "Zone" within the meaning of the Export Processing Zones Authority Ordinance, 1980 (IV of 1980), the income, profits and gains of such undertaking accruing or arising after the expiry of the period of exemption under clause (132) of Part I shall be charged to tax for a period of five years thereafter at the rate equal to twenty-five per cent of the rates specified in the First Schedule: Provided that nothing contained in this clause shall apply in respect of undertakings whose period of exemption under clause (124) of Part I will expire after the 30th June, 1997.” 3 Clause (5) omitted by the Finance Act, 2009. The omitted clause (5) read as follows: - “(5) The tax chargeable in respect of commission received by an export indenting agent or an export buying house shall be at the rate equal to the rate of tax applicable to the exporter on export of goods to which such commission relates.” 4 Clause (5A) substituted by SRO 218(I)/2008, dated 06.03.2008. The substituted clause (5A) read as follows: “(5A)The rate of withholding tax in respect of payments for profit on debt payable to a non-resident person, having no permanent establishment in Pakistan, shall be the rate as provided in Avoidance of Double Taxation Treaty of the respective country of the non-resident.” 5 The word “for” substituted by the Finance Act, 2009. 6 This expression inserted by the Finance Act, 2021. Earlier this expression was inserted through Tax Laws (Amendment) Ordinance, 2021. 7 Full stop substituted by the Finance Act, 2011. 8 Inserted by the Finance Act, 2011. 610 Second Schedule – Part-II_____ __________________________ 1[(5AA) The rate of tax to be deducted under sub-section (2) of section 152, in respect of payments to an individual, on account of profit on debt earned from a debt instrument, whether conventional or shariah compliant, issued by the Federal Government under the Public Debt Act, 1944 and purchased exclusively through a bank account maintained abroad, a non-resident Rupee account repatriable (NRAR) or a foreign currency account maintained with a banking company in Pakistan shall be ten percent of the gross amount paid: Provided that tax deducted on such profit on debt shall be final tax.] 2[(5AB) The rate of tax to be deducted under section 151 shall be ten percent from the profit on debt from a debt instrument, whether conventional or Shariah compliant, issued by the Federal Government under the Public Debt Act, 1944 (XVIII of 1944) or its wholly owned special purpose company, purchased by a resident citizen of Pakistan who has already declared foreign assets to the Board through a Foreign Currency Value Account (FCVA) maintained with authorized banks in Pakistan under the foreign exchange regulation issued by the State Bank of Pakistan: Provided that the tax so deducted shall be the final tax. (5AC) The rate of tax to be deducted under sub-section (2) of section 152 or under section 151, as the case may be, shall be zero percent of the gross amount of profit on debt paid, covered under clauses (78) and (79) of Part I of the Second Schedule.] 3[ ] 4[ ] 5[ ] 1 30th Clause (5AA) inserted though Finance Act, 2020 dated June, 2020 2 Clauses (5AB) and (5AC) inserted by the Finance Act, 2021. Earlier these clauses were inserted through Tax Laws (Amendment) Ordinance, 2021. 3 Inserted by the Finance Act, 2007. 4 Clause (5B) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(5B) The tax in respect of capital gains derived by a person from the sale of shares or assets by a private limited company to Private Equity and Venture Capital Fund shall be charged at the rate of ten per cent of such gains.]” 5 Clause (6) omitted by the Finance Act, 2008. The omitted clause (6) read as follows: “(6) In the case of resident person the profit on Special US Dollar Bonds purchased out of any incremental deposits made in the existing foreign currency accounts on or after the 16th day of December, 1999, or out of new accounts opened on or after the said date, shall be liable to deduction of income tax under clause (c) of sub-section (1) of section 151 at the rate of 10 per cent of the amount of the said profit.” 611 Second Schedule – Part-II_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[(9AA) In respect of import of white sugar from the 25th day of August, 2020 to the 15th day of November, 2020 both days inclusive, tax under section 148 shall be collected at the rate of 0.25% as per quantity, quality, mode and manner prescribed by Ministry of Commerce during the said period. (9AB) Tax under section 148 on commercial import of the white sugar shall be collected at the rate of 0.25% from the 26th day of January 2021 till the 30th day of June, 2021. 6[ ] 1 Clause (7) omitted by the Finance Act, 2005. The omitted clause (7) read as follows: “(7) In case of any resident individual, the tax from profit or interest of any National Savings Schemes of Directorate of National Savings or Post Office Savings Account in which investment is made on, or after, the first day of July, 2001, shall be deducted at the rate of ten per cent of such profit or interest: Provided that no tax shall be deducted from income or profits paid on- (a) Defence Savings Certificates, Special Savings Certificates Savings Accounts or Post Office Savings Account, made on, or after, the first day of July, 2001, where such deposit does not exceed one hundred and fifty thousand rupees; and (b) Investment in Monthly income Saving Accounts Scheme of Directorate of National Savings on, or after, the first day of July, 2001, where monthly installment in an account does not exceed one thousand rupees.” 2 Clause (8) omitted by the Finance Act, 2005. The omitted clause (8) read as follows: “(8) In the case of Daewoo Corporation, Seoul, Korea (hereinafter referred to as the Contractor), payments received in full or in part (including a payment by way of an advance) in pursuance of the contract agreements made with the National Highway Authority on the thirtieth day of December, 1991, for design and construction of Lahore-Islamabad Motorway shall be deemed to be the income of the Contractor and charged to tax at the rate of three per cent of such payments which shall constitute final discharge of his tax liability under this Ordinance and the Contractor shall not be required to file the return of income under section 114.” 3 Clause (9) omitted by S.R.O. 140(I)?2013, dated 26.02.2013. The omitted clause (9) read as follows: “(9) Tax under section 148 shall be collected at rate of the 1% on import of all fibres, yarns and fabrics and goods covered by the Zero Rating Regime of the Sales Tax notified by Central Board of Revenue.” 4 Clause (9A) omitted by S.R.O. 140(I)?2013, dated 26.02.2013. The omitted clause (9A) read as follows: “(9A) Tax under section 148 shall be collected at the rate of 3% on the import value of raw material imported by an industrial undertaking for its own use: Provided that the rate of 3% shall be applicable on production of an exemption certificate issued by the Commissioner.” 5 Clauses (9AA), (9AB) and (9AC) inserted by the Finance Act, 2021. Earlier theses clauses were inserted through SROs 771(I)/2020 dated 24.08.2020 and 235(I)/2021 dated 23.02.2021. 6 Clause (9AC) omitted by the Finance Act, 2025. The omitted clause read as follows: “(9AC) Subject to quota allotment by Commerce Division, tax under section 148 shall be collected at the rate of 0.25% on import of raw sugar imported by sugar mills from the 26th day of January, 612 Second Schedule – Part-II_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 2021 to the 30th day of June, 2021 both days inclusive provided that such imports shall not exceed fifty thousand metric tons per sugar mill and three hundred thousand metric tons in aggregate by the sugar industry.] 1 Clause (9B) omitted by Finance Act, 2014. The omitted clause (9B) read as follows: “(9B) Tax under section 148 shall be collected at the rate of 1% on import value of remeltable steel (PCT Heading 72.04) and directly reduced Iron imported by an industrial undertaking for its own use.” 2 Clause (9C) omitted by Finance Act, 2014. The omitted clause (9C) read as follows: “(9C) Tax under section 148 shall be collected at the rate of 1% in case of manufacturers and 3% in case of commercial importers covered under Notification No. S.R.O. 1125(I)/2011 dated the 31st December, 2011.” 3 Clause (10) omitted by the Finance Act, 2008. The omitted clause (10) read as follows: “(10) In the case of M/s Fauji Foundation and Army Welfare Trust, so much of the income chargeable under the head "Income from business " as is not exempt under clause (58) of Part I, shall be charged to tax at the rate of 20% of such income.” 4 Clause (11) omitted by the Finance Act, 2006. The omitted clause (11) read as follows: “(11) In the case of a non-resident O&M Contractor payments, received in full or in part including a payment by way of an advance, for the operation and maintenance of a private sector power project and transmission line projects approved by the Federal Government shall be deemed to be the income of the said O&M Contractor and charged to tax at the rate of five per cent of such payments for a period of three years beginning with the date of commencement of company's operations which shall constitute the final discharge of tax liability by the O&M Contractor under this Ordinance in respect of the said project.” 5 Clause (12) omitted by the Finance Act, 2006. The omitted clause (12) read as follows: “(12) In the case of consortium of M/s. STFA Construction Company of Turkey and M/s. JDN of Belgium (hereinafter referred to as the contractor) all payments received in pursuance of the contract agreement No. CEN-126/93, made with the Ormara Naval Harbour Project Board, on the fourteenth day of June, 1993, for the construction of a Naval Harbour at Ormara (including off- shore and land development works), chargeable to tax in any assessment year, shall be deemed to be the income of the contractor and charged to tax at the rate of three per cent which shall constitute final discharge of contractor's tax liability under this Ordinance.” 6 Clause (13) omitted by the Finance Act, 2008. The omitted clause (13) read as follows: “(13) Tax under section 148 shall be collected at the rate of 1% on imports of capital goods and raw material imported exclusively for its own use by a manufacturer registered with Sales Tax Department.” 7 Clause (13A) omitted by the Finance Act, 2008. The omitted clause (13A) read as follows: “(13A) In respect of phosphatic fertilizers imported and specified in Notification No. S.R.O. 609(I)/2004, dated 16th July, 2004 the tax under section 148 of the Income Tax Ordinance, 2001 shall be collected at the rate of 1% of its import value as increased by customs-duty, sales tax and federal excise duty, if any, levied thereon.” 8 Clause (13B) omitted by the Finance Act, 2008. The omitted clause (13B) read as follows: “(13B) In respect of goods falling under HS Code 801.1100, 801.3200, 802.1200, 802.9010, 613 Second Schedule – Part-II_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 902.4010, 902.4090, 2101.1110, 2101.1120, 0902.2000, 904.1110, 907.0000, 908.1000, 3702.3100, 3705.2000, 3707.9000, 4011.2090, 6301.1000, 8204.0000, 8301.1000, 8511.1000, 8525.4000, 8529.9010, 9004.1000 0904.1120 (White Pepper), 0904.1190 (Long Pepper), 0906.1000 (Cassia), 0813.4010 (Tamarind), 0908.3020 (Small Cardamom), 0908.3010 (Big Cardamom), 0909.1000 (Star Aniseeds), 0802.5000 (Pistachio), 1211.9000 (Medical Herbs), 1301.1010 (Seed Lac), 1903.0010 (Sago Seeds), 1301.9090 (Gum Gopal), 3706.9000 Other (cinematographic film), 9613.1000 (Pocket lighters, gas fuelled, non-refillable) and 9613.2000 (Pocket lighters, gas fuelled, refillable) and such other goods as notified by Central Board of Revenue of the First Schedule to the Customs Act, 1969 (IV of 1969), imported, the tax under section 148 shall be collected at the rate of 2% of its import value as increased by customs-duty, sales tax and federal excise duty, if any, levied thereon.” 1 Clause (13C) omitted by the Finance Act, 2015. The omitted clause (13C) read as follows:- “(13C) In respect of manufacturers of cooking oil or vegetable ghee or both, the rate of income tax on purchase of locally produced edible oil shall be 2% of the purchase price.” 2 Clause (13D) omitted by the Finance Act, 2005. Earlier clause (13D) was inserted by S.R.O. 769(I)/2004, dated 06.09.2004. The omitted clause (13D) read as follows: “(13D) In respect of import of polyester yarn/fibre all types, the tax under section 148 shall be collected at the rate of two per cent of the value of such items as increased by customs-duty and sales tax, if any, levied thereon.” 3 Clause (13E) omitted by Finance Act, 2014. The omitted clause (13E) read as follows: “(13E) In respect of potassic fertilizers imported in pursuance of Economic Coordination Committee of the cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004, the tax under section 148 of the Income Tax Ordinance, 2001 shall be collected at the rate of one per cent of its import value as increased by customs-duty and sales tax, if any, levied thereon.” 4 Clause (13F) omitted by S.R.O. 1037(I)/2005, dated 14.10.2005. The omitted clause (13F) read as follows: “(13F) In respect of import of blankets (acrylic), the tax under section 148 of the Income Tax Ordinance, 2001 shall be collected at the rate of two per cent of the value of such items as increased by customs-duty and sales tax, if any, levied thereon.” 5 Clause (13G) omitted by S.R.O.140(I)/2013, dated 26.02.2013. The omitted clause (13G) read as follows: “(13G) Tax under section 148 on the following item shall be collected @ 1% of their import value as increased by customs-duty, sales tax and federal excise duty, if any levied thereon: iv. Gold; v. Mobile telephone sets; vi. Silver;” 6 Clause (13H) omitted by Finance Act, 2008. The omitted clause (13H) read as follows: “(13H) Tax under section 148 on the following items shall be collected @ 2% of their import value as increased by Customs duty, Federal Excise Duty and sales tax, if any levied thereon; (i) raw material for steel industry including remeltable; and re-rollable scrap; (ii) raw material for manufacturer of poultry feed; (iii) stationery; (iv) edibale oil including crude oil imported as raw material for manufacturer of ghee or cooking oil; (v) Energy saver lamps [PCT heading 8539.10]; (vi) Bitumem [PCT heading 2714]; (vii) Fixed wireless terminal [PCT heading 8525.2040] 614 Second Schedule – Part-II_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] (viii) Pesticides and wedicides.” 1 Clause (13HH) omitted by Finance Act, 2014. The omitted clause (13HH) read as follows: “(13HH) Tax shall be deducted under section 153 at the rate of 1% on the sale value of rice to be sold by Rice Exporters Association of Pakistan (REAP) to Utility Store Corporation, in accordance with the provisions of the agreement, signed with Ministry of Food, Agriculture and Livestock (MINFAL) on May 5, 2008.” 2 Clause (13HHH) omitted by the Finance Act, 2014. Earlier it was inserted by SRO 645(I)/2008, dated 20.06.2008. The omitted clause (13HHH) read as follows: “(13HHH) Tax shall be deducted under section 153 at the rate 0.75% on the sale value of rice to be sold by Rice Exporters Association of Pakistan (REAP) to Utility Store Corporation, in accordance with the provisions of the agreement, signed by REAP with Ministry of Food, Agriculture and Livestock (MINFAL) on May 5, 2008: Provided that this clause shall be applicable up to June 30, 2008.” 3 Clause “(14)” omitted by the Finance Act, 2015. The omitted clause (14) read as follows:- “(14) In case of owners of 3[goods transport vehicles], the rate of tax as specified in clause (i) of Division III of Part IV of First Schedule shall be reduced to Rs.2 per kilogram of the laden weight.” 4 Clause (14A) omitted by the Finance Act, 2015. The omitted clause (14A) read as follows:- “(14A) In case of passenger transport vehicles, the rate of tax as specified in sub-clause (c) of clause (2) in Division III of Part IV of the First Schedule shall be reduced to 250 rupees per seat per annum.” 5 Clause (14B) omitted by the Finance Act, 2015. The omitted clause (14B) read as follows:- “(14B) In case of owners of goods transport vehicles, the rate of tax as specified in clause (i) of Division III of Pat IV of First Schedule shall be reduced to two Rupees per kilogram of the laden weight for the period commencing on the 1st July, 2012 and ending on the 17th November, 2012 (both days inclusive): Provided that owners of the passenger transport vehicles may pay tax for the period 1st day of July, 2012 to 30th day of June, 2013 at the rates under this clause, if the tax is paid by the 30th day of June, 2014: Provided further that the tax already paid from 1st day of July, 2012, as per rates specified in Division III of part IV of the First Schedule, shall not be refunded.” 6 Clause (14) omitted by the Finance Act, 2008. The omitted clause (14) read as follows: “(14) Tax shall be deducted under section 154 at the rate of 0.75% from foreign exchange proceeds on account of exports of – (i) rice marketed under a brand name up to fifty kilograms packs; (ii) canned and bottled fish including sea-food and other food items; and (iii) precious and semi-precious stones whether uncut, cut, or polished.” 7 Clause (15) omitted by the Finance Act, 2008. The omitted clause (15) read as follows: “(15) Tax shall be deducted under section 154 at the rate of 0.75% from foreign exchange proceeds on account of exports of fish and fisheries products packed in retail packs of five hundred grams to two kilograms.” 8 Clause (16) omitted by the Finance Act, 2008. The omitted clause (16) read as follows: “(16) In the case of a non-resident company, rate of deduction of tax under section 150 on dividends received from a company engaged exclusively in mining operations, other than petroleum, shall be 7.5 per cent of the gross amount of dividend.” 615 Second Schedule – Part-II_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[(18C) The rate of tax as specified in Division-III of Part-I of First Schedule shall be reduced to 7.5% in case of dividends declared by a company as are “attributable” to profits and gains derived from a bagasse and biomass based co- generation power project qualifying for exemption under clause (132C) of Part-I of this Schedule: Provided that the amount of “attributable” dividends shall be computed in accordance with the following formula, namely:- AXB/C Where- 1 Clause (17) omitted by Finance Act, 2014. The omitted clause (17) read as follows: “(17) The rates of tax as specified in Division III of Part-I of First Schedule shall be reduced to 7.5% in case of dividends declared or distributed by purchaser of a power project privatised by WAPDA.” 2 Clauses (18) added by the Finance Act, 2002. 3 Clause (18) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(18) In the case of a modaraba the rate of income tax shall be 25% of total income excluding such part of total income to which Division III of Part I of the First Schedule or section153 or section 154 applies.] 4 Clause (18A) Inserted by the Finance Act, 2014. 5 Clause (18A) omitted by the Finance Act, 2021. The omitted clause read as follows: “(18A) The rate of tax as specified in Division II of Part 1 of the First Schedule shall be reduced to 20% for a company setting up an industrial undertaking between the first day of July, 2014 to the thirtieth day of June, 2017, for a period of five years beginning from the month in which the industrial undertaking is set up or commercial production is commenced whichever is later: Provided that fifty percent of the cost of the project including working capital is through owner equity foreign direct investment.]” 6 Clause (18B) inserted by the Finance Act, 2016. 7 Clause (18B) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(18B) The rate of tax as specified in Division II of Part I of the First Schedule shall be reduced by 2% in case of a company whose shares are traded on stock exchange if: (a) it fulfils prescribed shari’ah compliant criteria approved by State Bank of Pakistan, Securities and Exchange Commission of Pakistan and the Board; (b) derives income from manufacturing activities only; (c) has declared taxable income for the last three consecutive tax years; and (d) has issued dividend for the last five consecutive tax years.”]” 8 Clause (18C) inserted by the Finance Act, 2021. 616 Second Schedule – Part-II_____ __________________________ A is the total amount of dividend for the year; B is the accounting profit for the year attributable to the bagasse and biomass based cogeneration power project qualifying for exemption under clause (132C) of Part-I of this Schedule; and C is the total accounting profit before tax for the year. Explanation. — For the removal of doubt, it is clarified that accounting profit attributable to the bagasse/biomass based cogeneration power project would be determined by the external auditor of the company and the external auditor shall issue a certificate to this effect.] 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 1 Clause (19) omitted by the Finance Act, 2014. The omitted clause (19) read as follows: “(19) In respect of tax year commencing on or after the first day of July, 2002,the rate of income tax in respect of income of amalgamated company for its different businesses shall be the same as applicable to such businesses in the relevant tax year for the tax year in which amalgamation takes place and two tax years next following.” 2 Clause (20) omitted by the Finance Act, 2014. The omitted clause (20) read as follows: “(20) The rates of tax as specified in clause (b) of Division-III of Part-I of First Schedule shall be reduced to 7.5% in case of dividend declared or distributed on shares of a company set up for power generation.” 3 Clause (21) omitted by the Finance Act, 2015. The omitted clause (21) read as follows: “(21) In the case of any resident person engaged in the business of shipping, a presumptive income tax shall be charged in the following manner, namely:- (a) ships and all floating crafts including tugs, dredgers, survey vessels and other specialized craft purchased or bare-boat chartered and flying Pakistan flag shall pay tonnage tax of an amount equivalent to one US $ per gross registered tonnage per annum; and (b) ships, vessels and all floating crafts including tugs, dredgers, survey vessels and other specialized craft not registered in Pakistan and hired under any charter other than bare-boat charter shall pay tonnage tax of an amount equivalent to fifteen US cents per tonne of gross registered tonnage per chartered voyage provided that such tax shall not exceed one US $ per tonne of gross registered tonnage per annum: Provided that the reduction under this clause shall not be available after the 30th June, 2020. Explanation.- For the purpose of this clause the expression “equivalent amount” means the rupee equivalent of a US dollar according to the exchange rate prevalent on the first day of December in the case of a company and the first day of September in other cases in the relevant assessment year.” 4 Clause (22) omitted by the Finance Act, 2007. The omitted clause (22) read as follows; “[(22) In respect of companies getting enlisted on any stock exchange in Pakistan during the period first July, 2005 to thirtieth June, 2006, the rate of income tax shall be reduced by 1%.]” 5 Clause (23) omitted by the Finance Act, 2014. The omitted clause (23) read as follows: 617 Second Schedule – Part-II_____ __________________________ 1[ ] 2[(24A) The rate of tax, under clause (a) of sub-section (1) of section 153, from distributors of cigarette 3[shall be 2.5% gross amount of payment] and pharmaceutical products 4[ ] 5[ ] shall be 1% of the gross amount of payments.] 6[ ] 7[ ] 8[ ] “(23) In respect of Urea fertilizer imported, the tax under section 148 shall be collected at the rate of 1% of its import value as increased by customs-duty, sales tax and federal excise duty], if any levied thereon.” 1 Clause (24) omitted by the Finance Act, 2014. The omitted clause (24) read as follows: “(24) In respect of pulses imported, the tax under section 148 shall be collected at the rate of two per cent of the value of such pulses as increased by customs-duty, sales tax and federal excise duty], if any, levied thereon.” 2 Inserted by the Finance Act, 2009. 3 Expression inserted by the Finance Act, 2024. 4 Inserted by the Finance Act, 2010. 5 The expression “and for large distribution houses who fulfill all the conditions for a large import house as laid down under clause (d) of sub-section (7) of section 148, for large import houses,” omitted by the Finance Act, 2021. 6 Clause (24AA) added by the Finance Act, 2018. 7 Clause (24AA) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(24AA) The rate of tax, under section 152 in the case of M/S CR-NORINCO JV (Chinese Contractor) as recipient, on payments arising out of commercial contract agreement signed with the Government of Punjab for installation of electrical and mechanical (E&M) equipment for construction of the Lahore Orange Line Metro Train Project, shall be 6% of the gross amount of payment.]” 8 Clause (24B) omitted by the Finance Act, 2014. The omitted clause (24B) read as follows: “(24B) (a) In case of Steel Melters, who have opted under the Sales Tax Special Procedure Rules 2007.— (i) for the Tax Year 2011, the rate of minimum tax under sub-section (1) of section 113 shall be 0.5% of turnover of Rs. 280 per metric ton, whichever is higher, provided that the consequent tax liability is deposited by 31st May, 2012. (ii) for the Tax Years 2008 to 2010, the rate of Withholding Tax under section 153(1)(a) on purchase of steel scrap shall be 1% of value of purchases or Rs. 300 per metric ton whichever is higher, provided that the consequent tax liability is deposited by 30th June, 2012; and (iii) for the Tax Years 2011 and 2012 the rate of Withholding Tax under section 153(1)(a) on purchase of steel scrap shall be 1% of value of purchases of Rs. 400 per metric ton whichever is higher provided that the consequent tax liability for the Tax Year 2011 is deposited by 30th June, 2012. (b) In case of Steel Re-rolling Mills, who have opted under the Sales Tax Special Procedure Rules, 2007.— (i) for the Tax Year 2011, the rate of minimum tax under sub-section (1) of section 113 shall be 0.5% of turnover of Rs.315 per metric ton, whichever is higher, provided that the consequent tax liability is deposited by 31st May, 2012. (ii) for the Tax Years 2008 to 2010, the rate of Withholding Tax under section 153(1)(a) on purchase of ingots and billets shall be 1% of value of purchases of 618 Second Schedule – Part-II_____ __________________________ 1[ ] 2[(24C) The rate of tax under clause (a) of sub-section (1) of section 153 in the case of distributors, dealers, sub-dealers, wholesalers and retailers of fast moving consumer goods, fertilizer, electronics excluding mobile phones, sugar, cement 3[, steel], and edible oil as recipient of payment shall be 0.25% of gross amount of payments subject to the condition that beneficiaries of reduced rate are appearing on the Active Taxpayers’ Lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001 (XLIX of 2001): Provided that the benefit under this clause shall only be available to those Tier-1 retailers as defined under Sales Tax Act, 1990 who are integrated and configured with Board or its computerized system for real time reporting of sales or receipts.] 4[ ] 5[ ] 6[(24CB) The rate of tax under clauses (b) and (c) of sub-section (1) of section 153 and sub-section (1) of section 236A to be deducted and collected from the National Logistics Corporation shall be 3% of the gross amount of payment and gross sale price of a lease of the right to collect tolls, respectively: Rs.400 per metric ton, whichever is higher provided that the consequent tax liability is deposited by 30th June, 2012; and (iii) for the Tax Years 2011 and 2012, the rate of Withholding Tax under section 153(1)(a) on purchase of ingots and billets shall be 1% of the value of purchases of Rs.450 per metric ton, whichever is higher, provided that the consequent tax liability for the tax year 2011 is deposited by 30th June, 2012.” 1 New clauses (24C) & (24D) added through Finance Act, 2019. 2 Clause (24C) substituted by the Finance Act, 2021. Earlier an amendment was made through Tax Laws (Amendment) Ordinance, 2021. The substituted clause read as follows: “(24C) The rate of tax under clause (a) of sub-section (1) of section 153 in case of dealers and sub- dealers of sugar, cement and edible oil, as recipient of the payment, shall be 0.25% of the gross amount of payments.]” 3 Expression added by the Finance Act, 2022. 4 30th New clause (24CA) inserted through Finance Act, 2020 dated June, 2020 5 Clause (24CA) omitted by the Finance act, 2025. The omitted clause read as follows: “ (24CA) The rate of tax under clause (a) of sub-section (1) of section 153 in case of a person, other than a company, as a recipient of payment for goods supplied to Utility Stores Corporation of Pakistan shall be 1.5% of the gross amount of payment in respect of supply of tea, spices, salt, dry milk, sugar, pulses wheat flour and ghee for the period commencing from the 7th day of April, 2020 and ending on 30th day of September, 2020: Provided that this clause shall not be applicable to supply of tea, spices, salt and dry milk which are sold under a brand name: Provided further that this clause shall not be applicable where rate of tax under clause (a) of sub-section (1) of section 153 is less than 1.5% of the gross amount of payment under any provisions ” of the Ordinance. 6 Clause (24CB) inserted by Finance Act, 2025. 619 Second Schedule – Part-II_____ __________________________ Provided that the tax so deductible and collected shall be minimum tax and in case the normal income tax, chargeable under Division II of Part I of the First Schedule on the taxable income of the taxpayer, is higher than the amount of tax under this clause, the taxpayer shall be liable to pay the normal income tax.] 1[(24D) The rate of minimum tax under sub-section (1) of section 113 in the case of distributors, dealers, sub-dealers, wholesalers and retailers of fast moving consumer goods, fertilizer, locally manufactured mobile phones, sugar, electronics excluding imported mobile phones, cement 2[, steel] and edible oil shall be 0.25% subject to the condition that beneficiaries of reduced rate are appearing on the Active Taxpayers’ Lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001: Provided that the benefit under this clause shall be available to only those Tier-1 retailers as defined under Sales Tax Act, 1990 who are integrated and configured with Board or its computerized system for real time reporting of sales or receipts.] 3[ ] 4[ ] 5[(27) The tax on payments under the Compulsory Monetization of Transport Facility for Civil Servants in BS-20 to BS-22 (as reduced by deduction of driver’s salary) shall be charged at the rate of 5% as a separate block of income.] 6[ ] 1 Clause (24D) substituted by the Finance Act, 2021. Earlier an amendment was made through Tax Laws (Amendment) Ordinance, 2021. The substituted clause read as follows: “(24D) The rate of minimum tax under sub-section (1) of section 113 in case of dealers and sub- dealers of sugar, cement and edible oil shall be 0.25% subject to the condition that the names of such dealers and sub-dealers are appearing on the active taxpayers’ lists issued under the provisions of the Sales Tax Act, 1990 and the Income Tax Ordinance, 2001 (XLIX of 2001).]” 2 Expression added by the Finance Act, 2022. 3 Clause (25) omitted by the Finance Act, 2007. The omitted clause (25) read as follows: “(25) Services of sizing, weaving stitching, dying, printing, embroidery and washing rendered or provided to an exporter or an export house shall be treated as export and chargeable to tax at the rate equal to the rate of tax applicable to the exporter on export of goods to which such services relate as specified in Division IV of Part III of the First Schedule.”. 4 Clause (26) omitted by the Finance Act, 2014. The omitted clause (26) read as follows: “(26) The rate of tax as specified in Division II of Part IV, of the First Schedule, in the case of advertising agents, shall be 5% of the amount of the payment.” 5 Added by S.R.O. 569(I)/2012, dated 26.05.2012. 6 Clause (28) omitted by the Finance Act, 2009. The omitted clause (28) read as follows: “(28) The rate of tax to be deducted under section 155, as specified in Division V, Part III of First Schedule, shall be as under:- (a) in the case of individual and association of persons at S.Nos.3 and 4 of the Table─ 620 Second Schedule – Part-II_____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] S.No. Gross amount of rent Rate of tax (1) (2) (3) (3) Where the gross amount of rent Rs.12,500 plus 7.5 per cent of exceeds Rs.400,000 but does the gross amount exceeding not exceed Rs.1,000,000 Rs.400,000 (4) Where the gross amount of rent Rs.57,500 plus 10 per cent of exceeds Rs.1,000,000 the gross amount exceeding Rs.1,000,000; and (b) in the case of company at S.Nos.2 and 3 of the Table─ S.No. Gross amount of rent Rate of tax (1) (2) (3) (2) Where the gross amount of rent Rs.20,000 plus 7.5 per cent of exceeds Rs.400,000 but does the gross amount exceeding not exceed Rs.1,000,000 Rs.400,000 (3) Where the gross amount of rent Rs.65,000 plus 10 per cent of exceeds Rs.1,000,000 the gross amount exceeding Rs.1,000,000.” 1 Clause (28A) inserted by the Finance Act, 2013. 2 Clause (28A) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(28A) The rate of tax under section 148 on import of hybrid cars shall be reduced as below:— Engine Capacity Rate of reduction Upto 1200 cc 100% 1201 to 1800 cc 50% 1801 to 2500 cc 25%] 3 Clause (29) omitted by the Finance Act, 2014. The omitted clause (29) read as follows: “(29) The rate of tax under section 153A as specified in Part IIA of the First Schedule shall be reduced to 0.1% in case of cigarette manufacturers who are registered under the Sales Tax Act, 1990.” 4 Clause (30) omitted by the Finance Act, 2014. The omitted clause (30) read as follows: “(30) The rate of tax as specified in column (3), against serial no. 2 in clause (1), in Division I of the Part I of First Schedule to the ordinance shall be reduced to 5%, for taxable income declared in a return for tax year 2012, filed under clause (87) or (88) of the Part IV of this Schedule.” 5 Clause (28B) added by the Finance Act, 2015. 6 Clause (28B) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(28B) The rate of tax shall be 0.15% under section 231A on cash withdrawal by an exchange company, duly licensed and authorized by the State Bank of Pakistan, exclusively dedicated for its authorized business related transactions, subject to the condition that a certificate issued by the concerned Commissioner Inland Revenue for a financial year mentioning details and particulars of its Bank Account being used entirely for business transactions is provided.” 621 Second Schedule – Part-II_____ __________________________ 1[(28C)The rates of tax as specified in Division II of Part-IV of the First Schedule shall be five percent in the case of a person running online marketplace as defined in clause (38B) of section 2.] 2[(28D) The rate of minimum tax under section 113 for tax year 2020 shall be 0.5% in the case of a trader having turnover upto one hundred million Rupees: Provided that the tax liability of traders for tax year 2019 and 2020 in case of traders who filed return of income for tax year 2018 shall not be less than the tax paid for the tax year 2018. Explanation.- For the purpose of this clause, ‘trader’ shall mean an individual engaged in business of buying and selling of goods in the same state not include a distributor. (28E) The rate of minimum tax under section 113 3[ ] shall be 0.5% in case of a trader of yarn being an individual.] 4[(28F) The rate of tax under clause (b) of sub-section (1) of section 153 in case of oil tanker contractor services shall be 2% of the gross amount of the payments. 5[(31) The rate of tax under clause (a) of sub-section (1) of section 153 shall be 1% on payment for sale of gold and silver and articles thereof and the tax so deducted shall be adjustable;] 1 Added by the Finance Act, 2017. 2 26th Clauses (28D) & (28E) inserted through Tax Laws(Second Amendment), 2019 dated December, 2019. 3 The expression “for tax year 2020” omitted by the Finance Act, 2021. 4 Clause (28F) added by the Finance Act, 2021. 5 Clause (31) added by the Finance Act, 2022. 622 Second Schedule – Part III____ __________________________ PART III REDUCTION IN TAX LIABILITY Income, or classes of income, or person or classes of person, enumerated below, shall be allowed reduction in tax liability to the extent and subject to such conditions as are specified hereunder:- 1[ ] 2[ ] 3[ ] 4[ ] 5[(2) The tax payable by a full time teacher or a researcher, employed in a non profit education or research institution duly recognized by Higher Education Commission, a Board of Education or a University recognized by the Higher Education Commission, including government 6[ ] research institution, shall be reduced by an amount equal to 7[25]% of tax payable on his income from salary 8[:] 1 Clause (1) omitted by the Finance Act, 2022. The omitted clause read as follows: (1) 1[(1) Any amount received as- (a) flying allowance by 1[ ]flight engineers, navigators of Pakistan Armed Forces, Pakistani Airlines or Civil Aviation Authority, Junior Commissioned Officers or other ranks of Pakistan Armed Forces; and (b) submarine allowance by the officers of the Pakistan Navy, shall be taxed @ 2.5% as a separate block of income 1[:] ] [Provided that the reduction under this clause shall be available to so much of the flying allowance or the submarine allowance as does not exceed an amount equal to the basic salary.]” 2 Sub-Clause (1A) omitted by Finance Act, 2014. The omitted sub-clause (1A) read as follows: “(1A) Where the taxable income 2[other than income on which the deduction of tax is final], in a tax year, of a taxpayer aged 2[60] years or more on the first day of that tax year does not exceed 2[one million] rupees, his tax liability on such income shall be reduced by 50%.” 3 Clause (1AA) inserted by the Finance Act, 2014. 4 Clause (1AA) omitted by the Finance Act, 2022. The omitted clause read as follows: “(1AA) Total allowances received by pilots of any Pakistani airlines shall be taxed at a rate of 7.5%, provided that the reduction under this clause shall be available to so much of the allowances as exceeds an amount equal to the basic pay.” 5 Sub-Clause (2) substituted by the Finance Act, 2006. The substituted sub-clause (2) read as follows: “(2) In addition to the reduction specified in sub-clause (1), the tax payable by a full time teacher or a researcher, employed in a non-profit education or research institution including government training and research institution duly recognized by a Board of Education or a University or the Higher Education Commission, shall be further reduced by an amount equal to 75% of the tax payable after the aforesaid reduction.” 6 The words “training and” omitted through Finance Act, 2019. 7 The figure “40” substituted by the Finance Act, 2019. 8 Full stop substituted by “colon” though Finance Act, 2019. 624 Second Schedule – Part III____ __________________________ 1[Provided that this clause shall not apply to teacher of medical profession who derive income from private medical practice or who receive share of consideration received from patients.] 2[ ] 3[ ] 4[(3A) The tax payable by a full-time teacher or a researcher, employed in a non- profit education or research institution duly recognized by Higher Education Commission, a Board of Education or a University recognized by the Higher Education Commission, including government research institution, shall be reduced by an amount equal to 25% of tax payable on his income from salary: Provided that this clause shall not apply to teacher of medical profession who derive income from private medical practice or who receive share of consideration received from patients: Provided further that the provision of this clause shall be deemed to have been in force with effect from the first day of July, 2022 and shall cease to have effect after tax year 2025.] 5[(4) In respect of old and used automotive vehicles, tax under section 148 shall not exceed the amount specified in Notification No. S.R.O. 577(I)/2005, dated the 6th June, 2005.] 1 New provision inserted through Finance Act, 2019. 2 Clause (2) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(2) The amount of tax payable, in a year in which the rupee is revalued or devalued, by a taxpayer whose profits or gains are computed in accordance with the rules contained in the Fifth Schedule to this Ordinance and who had entered with the Government into an agreement which provides for such reduction, shall be reduced to the amount that would be payable in the absence of the revaluation or devaluation of the rupee.” 3 Omitted by the Finance Act, 2008. The omitted clause (3) read as follows: “(3) Where any company engaged in the business of distribution of cigarette manufactured in Pakistan is required to pay minimum tax on the amount representing its turnover under section 113, the amount of tax payable under the said section shall be reduced by eighty per cent.” 4 Clause (3A) inserted by Finance Act, 2025. 5 Clause (4) substituted by the Finance Act, 2011. The substituted clause (4) read as follows: “(4) In respect of old and used automotive vehicles specified in Notification No. S.R.O. 932(I)/2004, dated the 20th November, 2004, the tax under section 148 of the Income Tax Ordinance, 2001, shall not exceed the amount specified in column (3) of the Table below, namely:— TABLE S.No. Vehicles meant for transport of persons Income tax in Pak Rupees (1) (2) (3) 1. Upto 800CC Rs.29,852 2. From 801CC to 1000CC Rs.34,497 3. From 1001CC to 1300CC Rs.67,282 4. From 1301CC to 1600CC Rs.105,061 5. From 1601CC to 1800CC Rs.120,256” 624 Second Schedule – Part III____ __________________________ 1[ ] 2[(3[6]) The tax payable under clause (c) of sub-section (1) of section 39, in respect of any amount paid as yield or profit on investment in Bahbood Savings Certificate or Pensioners Benefit Account 4[and Shuhada Family Welfare Account] shall not exceed 5[5%] of such profit.] 6[ ] 7[ ] (9) The tax payable on profits and gains derived by a person from low cost housing projects shall be reduced by fifty percent. The reduction in tax liability under this clause shall apply to such project which is— (a) owned and managed by a company formed for operating the said project and registered under the Companies Act, 2017 (XIX of 2017) and having its registered office in Pakistan; and (b) not formed by the splitting up, or the reconstruction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business; and (c) a low cost housing project under which the maximum sale price of a single housing unit is two and a half million rupees] 8[: Provided that exemption under this clause shall continue to remain available to such projects which commence on or before the 30th day of June, 2024.] 1 Clause (5) omitted by the Finance Act, 2014. The Omitted clause (5) read as follows: “(5) Where the corporatized entities of Pakistan Water and Power Development Authority (DISCOs) and National Transmission and Dispatch Company (NTDC), are required to pay minimum tax under section 113, the purchase price of electricity shall be excluded from the turnover liable to minimum tax up to the tax year 2013.” 2 Added by the Finance Act, 2008. 3 Clause (5) renumbered by the Finance Act, 2009. 4 Inserted by the Finance Act, 2018 5 The expression “10%” substituted by the Finance Act, 2022. 6 Clause (7) added by the Finance Act, 2018. 7 Clauses (7) and (8) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clauses read as follows: “((7) The amount of tax payable by foreign film-makers from making films in Pakistan shall be reduced by fifty percent on income from film-making in Pakistan. (8) The amount of tax payable by resident companies deriving income from film-making shall be reduced by seventy percent on income from film-making..” 8 Full stop substituted and proviso added by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. 625 Second Schedule – Part III____ __________________________ 1[ ] 2[ ] 3[ ] 4[(9A) The amount of tax payable on income chargeable under the head, “Capital Gains” on disposal of immovable property shall be reduced by fifty percent on the first sale of immovable property acquired or allotted to ex-servicemen and serving acquired or allotted to ex-servicemen and serving personal of Armed Forces or ex- employees or serving personnel of Federal and Provincial Governments, being original allottees of the immovable property, duly certified by the allotment authority5[:]] 6[Provided that for capital gains arising after completion of three years from the date of acquisition of immovable property the amount of tax payable shall be reduced by seventy-five percent.] 7[(9B) The tax payable on the income, profits and gains of projects of ‘low cost housing’ developed or approved by Naya Pakistan Housing and Development Authority (NAPHDA) or under the Ehsaas Programme shall be reduced by 90%] 8[: Provided that exemption under this clause shall continue to remain available to such projects which commence on or before the 30th day of June, 2024.] 9[ ] 1 Clause (7) omitted by Finance Act, 2014.the omitted clause (7) read as follows: “(7) Where any 1[taxpayer] engaged in the business of distribution of cigarettes manufactured in Pakistan is required to pay minimum tax on the amount representing its turnover under section 113, the amount of tax payable under the said section shall be reduced by eighty per cent.” 2 Clause (8) omitted by Finance Act, 2014. The omitted clause (8) read as follows: “(8) For the distributors of pharmaceutical products, fertilizers, consumers goods including fast moving consumers goods, the rate of minimum tax on the amount representing their annual turnover under section 113 shall be reduced by eight per cent.” 3 Clause (9) omitted by Finance Act, 2014. The Omitted clause (9) read as follows: “(9)In cases of oil marketing companies, oil refineries and Sui Southern Gas Company Limited 3[and Sui Northern Gas Pipelines Limited] the rate of minimum tax shall be reduced to 0.5% only for the cases where annual turnover exceeds rupees one billion.” 4 New clause (9A) added through Finance Act, 2019. 5 Full stop substituted by semi colon through Tax Laws(Second Amendment) Ordinance, 2019 dated 26th December, 2019. 6 26th New proviso inserted through Tax Laws(Second Amendment) Ordinance, 2019 dated December, 2019, 7 New clause (9B) inserted through Finance Act, 2020 dated 30th June, 2020 8 Full stop substituted and proviso added by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. 9 Clause (10) omitted by Finance Act, 2014. The Omitted clause (10) read as follows: “(10) For cases of flour mills the rate of minimum tax on the amount representing their annual turnover under section 113 shall be reduced by eighty per cent.” 626 Second Schedule – Part III____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[(17) The tax payable by cotton ginners on their income and profits shall not be more than sum of 1% of their turnover from cotton lint, cotton seed, cotton seed oil and cotton seed cake: Provided that the tax so payable shall be final tax in respect of their cotton ginning and oil milling activities only.] 8[(18) The rate of withholding tax on value of offshore supply contract of an Independent Power Producer located wholly or partly in territories of AJ&K shall be 1% provided: (i) PPIB has issued Letter of Support for the project; 1 Clause (11) omitted by Finance Act, 2014. The Omitted clause (11) read as follows: “(11) The amount of surcharge payable on the Income Tax liability for the Tax Year 2011 under section 4A shall be computed on the proportionate amount of Income Tax liability for three and a half months.” 2 Clause (12) omitted by Finance Act, 2014. The Omitted clause (12) read as follows: “(12) For the ease of M/s Pakistan International Airlines Corporation the rate of minimum tax on the amount representing their annual turnover under section 113 shall be reduced by fifty per cent.” 3 Clause (13) omitted by Finance Act, 2014. The Omitted clause (13) read as follows: “(13) For the petroleum agents and distributors who are registered under the Sales Tax Act, 1990 and rice mills and dealers, the rate of minimum tax under section 113 on the amount representing their annual turnover under section 113 shall be reduced by eighty per cent.” 4 Clause (14) omitted by Finance Act, 2014. The Omitted clause (14) read as follows: “(14) For the poultry industry including poultry breeding, broiler production, egg production and poultry feed production, the rate of minimum tax under section 113 on the amount representing their annual turnover under section 113 shall be reduced by fifty per cent.” 5 Clause (15) omitted by Finance Act, 2014. The Omitted clause (15) read as follows: “[(15) For the motorcycle dealers registered under the Sales Tax Act, 1990, the rate of minimum tax under section 113.— (i) for the Tax Year 2011 shall be reduced by fifty per cent provided that they deposit their minimum tax on turnover by the 30th June, 2012; and (ii) for the Tax Year 2012 onwards shall be reduced by seventy-five per cent.” 6 Clause (16) omitted by Finance Act, 2015. The Omitted clause (16) read as follows:- “ (16) The minimum penalty for failure to furnish statement under section 115, 165 or 165A as mentioned in column (3) against serial No. (1A) in the Table given in sub-section (1) of section 182 shall be reduced to ten thousand rupees.” 7 Clause (17) inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2019, by the Finance Act, 2021. Earlier this clause was inserted through Tax Laws (Amentment) Ordinance, 2021. 8 Clauses (18), (19) and (20) inserted by the Finance Act, 2021. 627 Second Schedule – Part III____ __________________________ (ii) its EPC Contract has been executed and submitted to NEPRA for EPC stage tariff determination prior to the enactment of Finance Act, 2018; (iii) offshore supply contract arrangement of offshore supply contractor having permanent establishment in Pakistan falls under the purview of cohesive business operation as contemplated under Income Tax Ordinance, 2001; and (iv) such 1% tax shall be full and final liability of the offshore contractor. (19) The tax payable by woman enterprises on profit and gains derived from business chargeable to tax under the head “Income from Business” shall be reduced by 25%. Explanation.—For the purpose of this clause a woman enterprise means a startup established on or after first day of July 2021 as sole proprietorship concern owned by a woman or an AOP all of whose members are women or a company whose 100% shareholding is held or owned by women: Provided that benefit of this clause shall not be available to a business that is formed by the transfer or reconstitution or reconstruction or splitting up of an existing business. 1[ ] 1 Clause (20) omitted by the Finance Act, 2022. The omitted clause read as follows: “(20) The tax payable by a person other than a banking or insurance company in respect of profit on debt from investment in Federal Government securities shall be fifteen percent of the gross amount of the profit on debt: Provided that tax so payable shall be final tax on the income representing profit on debt from investment in Federal Government securities.” 628 Second Schedule – Part IV____ __________________________ PART IV EXEMPTION FROM SPECIFIC PROVISIONS Income, or classes of income, or persons or classes of persons, enumerated below, shall be exempt from the operation of such provisions of this Ordinance, subject to such conditions and to the extent, as are specified hereunder:- 1[ ] 2[(1A) the provision of clause (d) of section 46 shall not apply to Sukuk issued by “The Second Pakistan International Sukuk Company Limited” 3[and the Third Pakistan International Sukuk Company Limited].] 4[ ] (3) The provisions of clause (b) of 5[component C of the formula contained in] sub-section (2) of section 61 shall not apply in case of donations made to Agha Khan Hospital and Medical College, Karachi: 6[ ] 7[ ] 1 Clause (1) omitted by the Finance Act, 2003. The omitted clause (1) read as follows: “(1) The provisions ofclause (k) of section 21 shall not apply to any expenditure incurred by a banking company or a financial institution owned and controlled by the Federal Government on the provisions of perquisites, allowances or other benefits to any employee in pursuance of any law.” 2 Clause (1A) inserted by S.R.O. 1029(I)/2014 dated 29.11.2014. 3 Addedby the Finance Act, 2018. 4 Clause (2) omitted by the Finance Act, 2021. Earlier this amendment was made through Tax Laws (Second Amendment) Ordinance, 2021. The omitted clause read as follows: “(2) In the case of losses referred to in section 57 in respect of an industrial undertaking set up in an area declared by the Federal Government to be a "Zone" within the meaning of Export Processing Zones Authority Ordinance, 1980 (IV of 1980), the period of six 4[tax years] specified in the said section shall not apply.” 5 The words “component C of” substituted by the Finance Act, 2003. 6 Clause (3A) omitted by the Finance Act, 2008. The omitted clause (3A) read as follows: “(3A) The provisions of sub-sections (5) and (5A) of section 34 and section 70 shall not apply to any benefit derived by way of waiver of profit on debt or the debt itself under the State Bank of Pakistan, Banking Policy Department’s Circular No.29 of 2002, dated the 15th October, 2002, to the extent not set off against the losses under Part VIII of Chapter III.” 7 Clause (4) omitted by the Finance Act, 2003. The omitted clause (4) read as follows: “(4) The provisions of section 111 shall not apply in respect of any amount invested in the acquisition of Foreign Exchange Bearer Certificates issued under the Foreign Exchange Bearer Certificates Rule, 1985.” 631 Second Schedule – Part IV____ __________________________ 1[(4A) No provision of this Ordinance shall apply for recoup of tax credit already allowed to National Power Parks Management Company (Private) Limited for investment in plant and machinery notwithstanding non issuance of share certificates or any restructuring of its ownership pattern or debt to equity ratio prior to privatization as part of the privatization process.] 2[(5) The provisions of section 111 regarding un-explained income or assets shall not apply in respect of, — (i) any amount of foreign exchange deposited in a private Foreign Currency account held with an authorized bank in Pakistan in accordance with the Foreign Currency Accounts Scheme introduced by the State Bank of Pakistan: Provided that the exemption clause shall not be available in respect of any incremental deposits made on or after the 16th day of December, 1999 in such accounts held by a resident person or in respect of any amount deposited in accounts opened on or after the said date by such person. (ii) any amount invested in the acquisition of Three Years Foreign Currency Bearer Certificates issued under the Foreign Currency Bearer Certificates Rules, 1997. (iii) rupees withdrawn or assets created out of such withdrawal in rupees from private foreign currency accounts, or encashment of Foreign Exchange Bearer Certificates, US Dollar Bearer Certificates and Foreign Currency Bearer Certificates.] 3[ ] 1 Clauses (4A) inserted by the Finance Act, 2021. 2 Clause (5) substituted by the Finance Act, 2005. The substituted clause (5) read as follows: “(5) The provisions of section 111 shall not apply in respect of any amount of foreign exchange deposited in a private Foreign Currency account held with an authorized bank in Pakistan in accordance with the Foreign Currency Accounts Scheme introduced by the State Bank of Pakistan: Provided that the exemption under this clause shall not be available in respect of any incremental deposits made on or after the 16th day of December, 1999 in such accounts held by a resident person or in respect of 2[any amount] deposited in accounts opened on or after the said date by such person.” 3 Clause (9A) omitted though Finance Act, 2020 dated 30th June, 2020 the omitted clause read a follows: “(9A) Provisions of clause (a) of sub-section (1) of section 153, shall not apply to steel melters 3[and] composite steel units, as a payer, in respect of purchase of scrap, provided that tax is collected in accordance with section 235B: Provided that steel melters 3[ ] and composite steel units may opt to pay tax in accordance with section 235B, for tax year 2012 and 2013, if tax liability for the said tax years is paid by the 30th day of June, 2014: 630 Second Schedule – Part IV____ __________________________ 1[(9AA) Provisions of clause (a) of sub-section (1) of section 153, shall not apply to ship breakers as recipient of payment: Provided that this clause shall only apply for ships imported after the 1st July 2014.] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] Provided further that where tax has been deducted under clause (a) of sub-section (1) of section 153 or paid under an order under section 161, it shall not be refundable.” 1 Inserted by the Finance Act, 2014. 2 Clause (6) omitted by the Finance Act, 2003. The omitted clause (6) read as follows: “(6) The provisions of section 111 shall not apply in respect of any amount invested in the acquisition of US Dollar Bearer Certificate issued under the US Dollar Bearer Certificates Rules, 1991.” 3 Clause (7) omitted by the Finance Act, 2005. The omitted clause (7) read as follows: “(7) The provisions of section 111 shall not apply in respect of any amount invested in the acquisition of Three-Years Foreign Currency Bearer Certificates issued under the Foreign Currency Bearer certificates Rules, 1997.” 4 Clause (8) omitted by the Finance Act, 2005. The omitted clause (7) read as follows: “(8) The provisions of section 111 shall not apply in respect of rupees withdrawn or assets created out of such withdrawal in rupees from private foreign currency accounts, or encashment of Foreign Exchange Bearer Certificates, US Dollar Bearer Certificates and Foreign Currency Bearer Certificates.” 5 Clause (9) omitted by the Finance Act, 2003. The omitted clause (9) read as follows: “(9) The provisions of section 111 shall not apply in respect of any amount invested by a sponsor or an original allottee in the purchase of shares of a company owning and managing an industrial undertaking specified in rule 5A of the Third Schedule of the Income Tax Ordinance, 1979.” 6 Clause (10) omitted by Finance Act, 2014. The omitted clause (10) read as follows: “(10) The provisions of section 111, Part-X and Part-XI of Chapter X shall not apply in respect of any amount invested in the purchase of Special US Dollar Bonds issued under the Special U.S. Dollar Bond Rules, 1998: Provided that the exemption under this clause shall not be available in respect of the amount invested in the said Bonds purchased out of incremental deposits made in the existing foreign currency accounts on or after 16th day of December, 1999, or out of foreign currency accounts opened on or after the said date, or on payment of the amount referred to in sub-rule (3) of rule 5 of Special U.S. Dollar Bond Rules, 1998 after the said date.” 7 Clause (10A) omitted by Finance Act, 2014. The omitted clause (10A) read as follows: “(10A) (i) The provisions of serial No.5 of the Table given in sub-section (1) of section 182 and clause (a) of sub-section (1) of section 205 shall not apply to business located in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA, provided that the principal amount of tax due is paid by the 30th day of June, 2010; (ii) the provisions of section 235, regarding advance tax on electricity, shall not apply to commercial and industrial consumers of electricity located in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA till the 30th day of June, 2011; (iii) the provisions of section 154, regarding withholding tax on exports, shall not be applicable to 631 Second Schedule – Part IV____ __________________________ 1[ ] the export of goods originating from the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA, till the 30th day of June,2011: Provided that this clause shall only be restricted to the exporters based in the above areas; (iv) the provisions of section 148 shall not be applicable on the import of plant and machinery for establishment of businesses in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA till the 30th day of June, 2011: Provided that this concession shall not be available to the manufacturers and suppliers of cement, sugar, beverages and cigarettes; Explanation.— For the purpose of this Schedule,— (a) most affected areas means district Peshawar, Malakand Agency, and districts of Swat, Buner, Shangla, Upper Dir, Lower Dir, Hangu, Bannu, Tank, Kohat and Chitral; and (b) moderately affected areas means districts of Charsadda, Nowshera, D.I. Khan, Batagram, LakkiMarwat, Swabi and Mardan.” 1 Clause (11) omitted by the Finance Act, 2008. The omitted clause (11) read as follows: “(11) The provisions of section 113, regarding minimum tax, shall not apply to,- (i) National Investment (Unit) Trust or a collective investment scheme authorized or registered under the Non-banking Finance Companies (Establishment and Regulation) Rule, 2003 1[or a real estate investment trust approved and authorized under the Real Estate Investment Trust Rules, 2006], or any other company in respect of turnover representing transactions in shares, or securities listed on a registered stock exchange; (ii) petroleum dealers, in so far as they relate to turnover on account of sale of petroleum and petroleum products, notwithstanding their status as a company, a registered firm or an individual, engaged in retail sale of petroleum and petroleum products through petrol pumps for the purposes of assessment of their income and determination of tax thereon: Provided that this exemption shall not apply to the sale of petroleum and petroleum products through petrol pumps which are directly operated or managed by companies engaged in distribution of petroleum and petroleum products. Explanation.- For the removal of doubt it is declared that the companies engaged in distribution of petroleum and petroleum products other than through petrol pumps shall not be entitled to the benefits of this exemption; (iii) Hub Power Company Limited so far as they relate to its receipts on account of sale of electricity; (iv) KotAddu Power Company Limited (KAPCO) for the period it continues to be entitled to exemption under clause (138) of Part-I of this Schedule; (v) companies, qualifying for exemption under clause (132) of Part-I of this Schedule, in respect of receipts from sale of electricity; (vi) Provincial Governments and local authorities, qualifying for exemption under section 49 and other Government or semi-Government bodies which are otherwise exempt from income tax: Provided that nothing shall be construed to authorize any refund of tax already paid or the collection of any outstanding demand created under the said section; (vii) Pakistan Red Crescent Society; (viii) special purpose, non-profit companies engaged in scrutinizing the receivables of Provincial Governments or the companies; (ix) non-profit organizations approved under clause (36) of section 2 or clause (58) or included in clause (61) of Part-I of this Schedule; (x) a taxpayer who qualifies for exemption under clause (133) of Part-I of this Schedule, in respect of income from export of computer software or IT services or IT enabled services; (xi) a resident person engaged in the business of shipping who qualifies for application of reduced rate of tax on tonnage basis as final tax under clause (21) of Part II of the Second Schedule; (xii) a venture capital company, venture capital fund and Private Equity and Venture 632 Second Schedule – Part IV____ __________________________ 1[(11A) The provisions of section 113, regarding minimum tax, shall not apply to,- (i) National Investment (Unit) Trust or a collective investment scheme authorized or registered under the Non-banking Finance Companies (Establishment and Regulation) Rules, 2003 or a real estate investment trust approved and authorized under the Real Estate Investment Trust 2[“Regulations, 2015”], 3[or a pension fund registered under the Voluntary Pension System Rules, 2005] or any other company in respect of turnover representing transactions in shares, or securities listed on a registered stock exchange; (ii) petroleum dealers, in so far as they relate to turnover on account of sale of petroleum and petroleum products, notwithstanding their status as a company, a registered firm or an individual, engaged in retail sale of petroleum and petroleum products through petrol pumps for the purposes of assessment of their income and determination of tax thereon: Provided that this exemption shall not apply to the sale of petroleum and petroleum products through petrol pumps which are directly operated or managed by companies engaged in distribution of petroleum and petroleum products. Explanation.- For the removal of doubt it is declared that the companies engaged in distribution of petroleum and petroleum products other than through petrol pumps shall not be entitled to the benefits of this exemption; (iii) Hub Power Company Limited so far as they relate to its receipts on account of sale of electricity; CapitalFund] which is exempt under clause (101) of Part-I of this Schedule; (xiii) a Modaraba registered under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (XXXI of 1980); (xiv) Corporate and Industrial Restructuring Corporation (CIRC); (xv) a Small Company as defined in section 2; (xvi) The corporatized entities of Pakistan Water and Power Development Authority, so far as they relate to their receipts on account of sales of electricity, from the date of their creation upto the date of completion of the process of corporatization i.e. till the tariff is notified; and (xvii) a morabaha bank or a financial institution approved by the State Bank of Pakistan or the Securities and Exchange Commission of Pakistan (SECP), as the case may be, for the purpose of Islamic Banking and Finance in respect of turnover under a morabaha arrangement; and (xviii) WAPDA First Sukuk Company Limited.” 1 Inserted by the Finance Act, 2009. 2 The word and figure “Rules, 2006” substituted by the Finance Act, 2015. 3 Inserted by the Finance Act, 2011. 633 Second Schedule – Part IV____ __________________________ 1[ ] (v) companies, qualifying for exemption under clause (132)2[3[ ] ]of Part-I of this Schedule, in respect of receipts from sale of electricity; (vi) Provincial Governments and Local Governments, qualifying for exemption under section 49 and other Government bodies which are otherwise exempt from income tax: Provided that nothing shall be construed to authorize any refund of tax already paid or the collection of any outstanding demand created under the said section; (vii) Pakistan Red Crescent Society; (viii) special purpose, non-profit companies engaged in securitizing the receivables of Provincial Governments; 4[ ] [ ] (xi) a resident person engaged in the business of shipping who qualifies for application of reduced rate of tax on tonnage basis as final tax under clause (21) of Part II of the Second Schedule; (xii) a venture capital company, venture capital fund and Private Equity and Venture Capital Fund which is exempt under clause (101) of Part- I of this Schedule; 5[ ] 1 Sub-clause (iv) omitted by the Finance Act, 2015. The omitted sub-clause (iv) read as follows:- “(iv) KotAddu Power Company Limited (KAPCO) for the period it continues to be entitled to exemption under clause (138) of Part-I of this Schedule;” 2 The words and brackets “and clause (132B)” inserted by the Finance Act, 2014. 3 The word “and (132B)” omitted by the Finance Act, 2015. 4 Sub-clauses (ix) and (x) omitted by the Finance Act, 2021. The omitted sub-clauses read as follows: “(ix) non-profit organizations approved under clause (36) of section 2 or clause (58) or included in clause (61) of Part-I of this Schedule; (x) a taxpayer who qualifies for exemption under clause (133) of Part-I of this Schedule, in respect of income from export of computer software or IT services or IT enabled services;” 5 30th Sub-clause (xiii) substituted though Finance Act 2020 dated June, 2020 the substituted sub- clause read as follows: “(xiii) a Modaraba registered under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (XXXI of 1980);” 634 Second Schedule – Part IV____ __________________________ 1[ ] (xiv) Corporate and Industrial Restructuring Corporation (CIRC); 2[ ] (xvi) a morabaha bank or a financial institution approved by the State Bank of Pakistan or the Securities and Exchange Commission of Pakistan (SECP), as the case may be, for the purpose of Islamic Banking and Finance in respect of turnover under a morabaha arrangement; 3[ ] (xvii) WAPDA First Sukuk Company Limited4[“; and”] 5[ ] 6[ ] 7[“(xviii) Pakistan International Sukuk Company Limited.”] 8[“(xix) Second Pakistan International Sukuk Company Limited.”] (xix) LNG Terminal Operators and LNG Terminal Owners. (xx) taxpayers located in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA for tax year 2010, 2011 and 2012 excluding manufacturers and suppliers of cement, sugar, beverages and cigarettes. (xxi) Rice Mills for the Tax Year 2015. (xxii) taxpayers qualifying for exemption under clauses (126I) of Part-I of this Schedule in respect of income from manufacture of equipment with dedicated use for generation of renewable energy. 1 Sub-clause (xiii) omitted by the Finance Act, 2021. The omitted sub-clauses read as follows: “(xiii) a modaraba qualifying for exemption under clause (100) of Part-I of this Schedule.” 2 Sub-clause (xv) omitted by the Finance Act, 2021. The omitted sub-clause read as follows: “(xv) The corporatized entities of Pakistan Water and Power Development Authority, so far as they relate to their receipts on account of sales of electricity, from the date of their creation upto the date of completion of the process of corporatization i.e. till the tariff is notified;” 3 The word “and” omitted by the Finance Act, 2015. 4 Full stop substituted by Finance Act, 2015. 5 Clauses (xviii), (xix), (xx), (xxi), (xxii), (xxiii), (xxiv) and (xxv) added by the Finance Act, 2015. 6 Sub-clause (xviii) omitted by the Finance Act, 2021. The omitted sub-clauses read as follows: “(xviii) companies, qualifying for exemption under clause (132B) of Part-I of this Schedule, in respect of receipts from a coal mining project in Sindh, supplying coal exclusively to power generation projects.” 7 Inserted by S.R.O. 1029(I)/2014 date 19.11.2014. 8 Inserted by S.R.O. 1029(I)/2014 date 19.11.2014. 635 Second Schedule – Part IV____ __________________________ (xxiii) taxpayers qualifying for exemption under clauses (126J) of Part-I of this Schedule in respect of income from operating warehousing or cold chain facilities for storage of agriculture produce. (xxiv) taxpayers qualifying for exemption under clauses (126K) of Part-I of this Schedule in respect of income from operating halal meat production, during the period mentioned in clause (126K). (xxv) taxpayers qualifying for exemption under clauses (126L) of Part-I of this Schedule in respect of income from a manufacturing unit set up in Khyber Pukhtunkhwa Province between 1st day of July, 2015 and 30th day of June, 20181[; and] ] 2[“(xxvi) China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty three years, with effect from the sixth day of February, 2007.”] 3[(xxvii) companies, qualifying for exemption under clause (126M) of Part-I of this Schedule, in respect of profits and gains derived from a transmission line project.”] 4[“(xxviii) Third Pakistan International Sukuk Company Limited.”] 5[ ] 6[ ] 7[(xxx) taxpayers qualifying for exemption under clause (126) of Part-I of this Schedule with effect from the tax year 2014.] 8[(xxxi) National Disaster Risk Management Fund. (xxxii) Deposit Protection Corporation established under sub-section (1) of section 3 of the Deposit Protection Corporation Act, 2016 (XXXVII of 2016). 1 Inserted by the Finance Act, 2016 2 Inserted by the Finance Act, 2016 3 Inserted by the Finance Act, 2016 4 Inserted by the Finance Act, 2018. 5 Added by the Finance Act, 2017. 6 Sub-clause (xxix) omitted by the Finance Act, 2021. The omitted sub-clause read as follows: “((xxix) start-up as defined in clause (62A) of section 2.]” 7 Inserted by the Finance Act, 2018 8 New Subclauses shall be added through Finance Supplementary (Second Amendment) Act, 2019. 636 Second Schedule – Part IV____ __________________________ (xxxiii) SARMAYA-E-PAKISTAN LIMITED. (xxxiv) Green field industrial undertaking qualifying for exemption under clause (126O) of Part I of the Second Schedule:] 1[(xxxv) The Prime Minister’s COVID-19 Pandemic Relief Fund-2020; (xxxvi) the Federal Government Employees Housing Authority and Naya Pakistan Housing and Development Authority for the tax year 2020 and the following four tax years; (xxxvii) Hajj Group Operators in respect of turnover relating to Hajj operations for the tax year 2021; (xxxviii) A resident company engaged in hotel business in Pakistan in respect of turnover for the period starting on the first day of April, 2020 and ending on the thirtieth day of September, 2020.] 2[(xxxix) Islamic Naya Pakistan Certificates Company Limited (INPCCL); (xl) receipts from sale of electricity produced from a bagasse and biomass based cogeneration power project qualifying for exemption under clause (132C) of Part-I of this Schedule; (xli) National Power Parks Management Company (Private) Limited or demerged entities of National Power Parks Management Company (Private) Limited commencing from the commercial operation dates and continuing after the date of change of ownership as a result of privatization by the Privatization Commission of Pakistan.”; 3[ ] (xliii) Persons qualifying for exemption under clause 4[(126E) and (126EA)] of Part I of this Schedule; (xliv) Persons mentioned in Table I of clause (66) of Part I of Second Schedule.] 5 [(xlv) Mobile phone manufacturers engaged in the local manufacturing of mobile phone devices.] 1 30th New sub-clauses inserted through Finance Act, 2020 dated June, 2020. 2 Clauses (xxxix), (xl), (xli), (xlii), (xliii) and (xliv) added by the Finance Act, 2021. Earlier sub-clause (xxxix) wad added through Tax Laws (Amendment) Ordinance, 2021. 3 Sub-clause (xlii) omitted by the Finance Act, 2022. The omitted sub-clause read as follows: “(xlii) Persons qualifying for exemption under clause (126E) of Part I of this Schedule for tax year 2021 and onwards;” 4 The expression “(126EA)” substituted by the Finance Act, 2024. 5 Sub-clause (xlv) added by the Finance Act, 2022. 637 Second Schedule – Part IV____ __________________________ 1 [(xlvi) The Prime Minister's Relief Fund for Flood, Earthquake and Other Calamities with effect on and from the 5th August, 2022.] 2[(11B) The provisions of section 150 shall not apply in respect of inter- corporate dividend within the group companies entitled to group taxation under section 59AA 3[ ] 4[“subject to the condition that the return of the group has been filed for the latest completed tax year”].] 5[(11C) The provisions of section 151 shall not apply in respect of inter- corporate profit on debt within the group companies entitled to group taxation under section 59AA 6[ ] 7[“subject to the condition that the return of the group has been filed for the latest completed tax year”].] 8[(11D) The provisions of section 113C shall not apply to LNG Terminal Operators and LNG Terminal Owners.”] 9[(11E) The provisions of clause (b) of sub-section (1) of section 153 shall not apply to payments received by Sui Southern Gas Company Limited and Pakistan LNG Terminal Limited from Sui Northern Gas Pipelines Limited on account of re- gasification charges.] 10[(12) (a) The provisions of clause (l) of section 21 and clause (a) of sub-section (1) of section 153 shall not apply where agricultural produce is purchased directly from the grower of such produce subject to provision of a certificate by the grower to the withholding agent in the following format, namely:— CERTIFICATE TO BE FILED BY THE GROWER OF AGRICULTURAL PRODUCE It is certified that I …………………………. Holder of CNIC Number 1 Sub-clause (xlvi) added by the Finance Act, 2023. Earlier sub-clause (xlvi) was added through S.R.O. 1590(I)/2022 dated 23.08.2022. 2Added by the Finance Act, 2012. 3 The words “or section 59B” omitted by the Finance Act, 2016. 4 Clauses (xxxix), (xl), (xli), (xlii), (xliii) and (xliv) added by the Finance Act, 2021. 5 Added by the Finance Act, 2012. 6 The words “or section 59B” omitted by the Finance Act, 2016. 7 Substituted by the Finance Act, 2015. 8 Inserted by the Finance Act, 2015. 9 Inserted by the Finance Act, 2018 10 Added by S.R.O. 787(I)/2011, dated 22.08.2011. 638 Second Schedule – Part IV____ __________________________ …………………………………… have sold following agricultural produce, namely: i) name of agricultural produce (wheat, rice, cotton, sugarcane, etc. ………………………………………………….. ii) quantity ……………………………………….. iii) total price ……………………………………... iv) land identification (if any) …………………… to Mr / M/s ………………………………………. on (date) ……………………. and being the grower / producer of the said agricultural produce and owner of agricultural land area measuring (optional) …………………………… located in ………………………………. I am not liable to any Withholding Income Tax. Signature / Thumb impression ………………………………….. Name ……………………………………………………………….. CNIC ………………………………………………………………… Address …………………………………………………………….. Date……………………………. (b) the provisions of clause (a) of sub-section (1) of section 153 shall not apply only in case of cash payments made for meeting the incidental expenses of a business trip to the crew of oil tanker. This exemption shall not apply in case of any other payments made by owners of oil tankers; and 1[(12A) The provisions of section 150 shall not apply to dividend paid to Transmission Line Projects under Transmission Line Policy 2015.] 2[(12B) The provisions of section 148 shall not apply to the import of following goods for a period commencing from 20th day of March, 2020 and ending on 3[ ] 4[31st day of December, 2021]]. TABLE S. No. Description PCT (1) (2) (3) 1. Real-time PCR system (standard 96-well plate and 0.2ml tubes format, 5 channel) 1 Inserted by the Finance Act, 2018 2 30th New clause (12B) inserted though Finance Act, 2020 dated June, 2020 3 The expression “30th day of September, 2020” substituted by the Finance Act, 2021. Earlier this substituted by the SRO 1241(I)/2020 dated 20.11.2020. 4 The expression “30th day of June, 2021” substituted by the Finance Act, 2022. Earlier this substitution was made through SRO 1008(I)/2021 dated 09.08.2021. 639 Second Schedule – Part IV____ __________________________ 2. Biosafety Cabinet Respective 3. Auto Clave 50 Liter Capacity Headings."; 4. Multi channel pipette (0.5-10 µl) 5. Single channel pipette a) 2 µl b) 10 µl c) 200 µl d) 1000 µl 6. Muti channel pipette 20-200 ml 7. Vacuum fold 8. Micro Centrifuge (Non-refrigerated, Rotor capacity: 12 x 1.5 / 2.0 ml vessels, 2 x PCR strip, Max. speed: 12,100 x g (13,400 rpm)) 9. PCR Cabinet (HEPA filter system, UV and white light) 10 Real-time PCR kit for the detection of Coronavirus (SARS-CoV-2) 11 Viral RNA Extraction Kit and machine (Automatic Extractors) 12 VTM (Viral Transport Medium) 13 Dr Oligo Synthesizer 14 Refrigerator/freezer (-20 ºC) 15 Vortex Machine 16 Refrigerated Centrifuge Machine (Rotor capacity 1.5ml x 24, max. speed 14000 rpm) 17 UPS (6 KVA) 18 Tyvek Suits 19 N-95 20 Biohazard Bags (18 Liters) 21 PAPR (Powdered Air Purifying respirators) 22 Multimode ventilator with air compressor 23 Vital sign monitor with 2IBPand ETco2 two Temp. Respective 24 ICU motorized patient bed with side cabinet and over bed table Headings."; 25 Syringe infusion pump 26 Infusion pump 27 Electric suction machine 28 Defibrillator 29 X-Ray Mobile Machine 30 Simple Nebulizer 31 Ultrasound machine 32 Noninvasive BIPAP 33 ECG Machine 34 Pulse Oximeters 35 Ripple mattress 36 Blood gas analyzer 37 AMBU Bag 38 Nitrile Gloves 39 Latex Gloves 40 Goggles 41 Face Shields 640 Second Schedule – Part IV____ __________________________ 42 Gum Boots 43 Mackintosh bed sheets 44 Surgical Masks 45 Air Ways 46 Diaflow 47 Disposible Nebulizer Mask Kit 48 ECG Electrodes Respective 49 ETT Tube (Endotracheal Tubes) All sizes Headings."; 50 Humidifier Disposable Flexible 51 IV Cannula all sizes 52 IV Chambers 53 Oxygen Recovery Kit 54 Padded Sheets 55 Stomach Tube 56 Stylet for Endotracheal Tube 57 Suction Tube control valve 58 Tracheostomy Tube 7, 7.5, 8 59 Ventilator Circuit 60 Ventury Masks 61 Disposable shoes cover (water proof) 1[(12BA) The provisions of section 148 shall not apply on import of thirty million adult 3xPly Knit face masks received as humanitarian assistance from M/s HANES Brands Inc. North Carolina, USA for distribution within the population of Lahore Division, Government of the Punjab.] 2[(12C) The provision of section 148 shall not apply to persons importing pulses for a period commencing from the 7th day of April, 2020 and ending on 30th September, 2020. (12D) The provisions of section 148 shall not apply on the import of finished drug Remdesivir 100 mg injection and injectable solution 100 mg vial for the period starting from the 22nd day of June, 2020 and ending on the date as may be notified by the Board in the official Gazette on recommendation of the National Health Services, Regulation and Coordination Division. (12E) The provisions of section 148 shall not apply to persons on import of medicines for treatment of life threatening rare diseases not manufactured in Pakistan, subject to the following conditions, namely:— 1 New clause (12BA) added by the Finance Act 2022. Earlier this addition was made through SRO 1009(I)/2021 dated 09.08.2021. 2 30th New clauses (12C), (12D) and (12E) inserted through Finance Act 2020 dated June, 2020 641 Second Schedule – Part IV____ __________________________ (i) the import is approved by the Board, through notification in the official Gazette; (ii) the specification and quantity of medicine is recommended by the National Health Services, Regulation and Coordination Division in a prescribed format on a case to case basis; and (iii) such medicine is required for the personal use of the importing person or his immediate family member: Provided that where circumstances exist to take immediate action in emergency situations, the Board may, on recommendation of a provincial health department or a tertiary care hospital of the Federal or Provincial Government, provisionally allow import of such quantity of medicine under this clause which does not exceed sixty days usage.] 1[ ] 2[ ] 3[ ] (12H) (a) The provisions of section 148 shall not apply on import of following goods for a period of three months starting from the 23rd of June, 2020, namely:— S. No. Description PCT Code (1) (2) (3) 1. Oxygen gas 2804.4000 2. Cylinders (for oxygen gas) 7311.0090 3. Cryogenic tanks (for oxygen gas) 7311.0030 (b) the concessions given in this clause shall also apply in respect of the letters of credit opened or goods declaration forms filed on or after the 23rd June, 2020; 1 Clauses (12F), (12G), (12H), (12I), (12J), (112K), (12L), (12M) and (12N) added by the Finance Act, 2021. Earlier these clauses were inserted through SROs 642(I)/2020 dated 28.07.2020, 750(I)/2020 dated 20.08.2020, 772(I)/2020 dated 24.08.2020, 922(I)/2020 dated 29.09.2020, 99(I)/2021 dated 26.01.2021, 132(I)/2021 dated 03.02.2021, 235(I)/2021 dated 23.02.2021 (read with corrigendum dated 17.05.2021), 589(I)/2021 dated 25.05.2021 respectively. 2 Clause (12F) omitted by the Finance Act, 2025. The omitted clause read as follows: “(12F) The provision of section 148 shall not apply on import of 1.5 million tons of wheat having PCT Heading 1001.1900 and 1001.9900 in pursuance of Cabinet Decision in case No.399/23/2020 dated the 16th June, 2020;” 3 Clause (12G) omitted by the Finance Act, 2025. The omitted clause read as follows: “(12G) The provisions of section 148 shall, in pursuance of the Cabinet Decision in case No. 541/30/2020 dated the 4th August, 2020, not apply on import by the Trading Corporation of Pakistan of 300,000 metric tons of white sugar having PCT heading 1701.9910,1701.9920, specification B;” 642 Second Schedule – Part IV____ __________________________ (12I) The provisions of section 148 shall not apply on import of 83 X Micron sprayers for Anti-Locust Operation (Respective heading) by National Disaster Management Authority (NDMA). 1[ ] (12K) (a) The provisions of section 148 shall not apply on import of following goods by the manufacturers of oxygen for a period of three months starting from the 25th day of December, 2020, namely:— S. No. Description PCT Code (1) (2) (3) 1. Cryogenic Tanks (for oxygen Gas) 7311.0030 (b) the concessions given in this clause shall also apply in respect of the letters of credit opened or goods declaration forms filed on or after the 25th day of December, 2020; (12L) The provisions of section 148 and 153 shall not apply on import and subsequent supply of five hundred thousand metric tons of white sugar imported by the Trading Corporation of Pakistan; (12M) The provisions of section 148 shall not apply on import of following goods for a period of one hundred and eighty days starting from the 14th day of May, 2021, namely:— S. No. Description PCT Code (1) (2) (3) 1. - Oxygen 2804.4000 2. - - - Other (Oxygen Cylinders) 7311.0090 3. - - - For Cryogenic (Tanks/Vessels) 7311.0030 4. Oxygen Respective headings. Concentrators/Generators/Manufacturing Plants of all specifications and capacities. (12N) Border sustenance markets— (a) The provisions of section 148 shall not apply on the import of goods which takes place within the jurisdiction of Border sustenance markets specified in Table-I below:— TABLE-I 1 Clause (12J) omitted by the Finance Act, 2025. The omitted clause read as follows: “(12J) The provisions of section 148 shall, in pursuance of the Cabinet Decision in case No. 34/02/2021, dated the 12th January, 2021, not apply on import of three hundred thousand metric tons of wheat through tendering process by the Trading Corporation of Pakistan;” 643 Second Schedule – Part IV____ __________________________ PCT Heading 1. 07011000 -SEED (Potatoes) 2. 07020000 TOMATOES, FRESH OR CHILLED. 3. 07031000 -ONIONS AND SHALLOTS 4. 07032000 -GARLIC 5. -OTHERS which qualifies for exemption or concession or reduced rate under the provisions of 07049000 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 6. 07061000 -CARROTS AND TURNIPS 7. CUCUMBERS AND GHERKINS FRESH OR 07070000 CHILLED. 8. 07081000 -PEAS (PISUM SATIVUM) 9. 07082000 -BEANS (VIGNA SPP., PHASEOLUS SPP.) 10. 07089000 -OTHER LEGUMINOUS VEGETABLES 11. 07131000 - Peas (Pisum sativum) 12. 07132010 Grams (Dry/Whole) 13. ---other- which qualifies for exemption or concession or reduced rate under the provisions of 07132090 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 14. -- Beans of the species Vigna mungo (L.) Hepper or 07133100 Vigna radiata (L.) Wilczek 15. -- small red (Adzuki) beans (Phaseolus or Vigna 07133200 angularis) 16. 07133300 Kidney beans including white beans 17. -- Bambara – vigna subteranea or vaahdzeia 07133400 subterrea 18. 07133500 - - Cow peas (Vigna unguiculata) 19. -- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs 07133990 Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 20. 07134010 - Lentils (Dry Whole) 21. - Broad beans (Vicia faba var. major) and horse 07135000 beans (Vicia faba var. equina, Vicia faba var. minor) 22. 07136000 - Pigeon peas (cajanus cajan) 23. - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs 07139090 Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 644 Second Schedule – Part IV____ __________________________ 24. 09051000 Vanilla (Neither crushed nor ground) 25. 09061100 Cinnamon 26. 09061900 Other (Cinnamon And Cinnamon Tree Flowers) 27. 09071000 - - Neither crushed nor ground (Cloves) 28. 09072000 - - Crushed or ground (Cloves) 29. 09081100 - - Neither Crushed nor ground (Nutmeg) 30. 09081200 - - Crushed or ground (Nutmeg) 31. 09082100 - - Neither crushed nor ground (Maze) 32. 09082200 - - Crushed or ground (Maze) 33. 09083110 - - - Large (Cardammoms) 34. 09083120 - - - Small (Cardammoms) 35. 09083200 - - Crushed or ground (Cardammoms) 36. 09092100 - - Neither crushed nor ground (Coriander) 37. 09092200 - - Crushed or ground (Coriander) 38. 09093100 - - Neither crushed nor ground (Seeds of Cumins) 39. 09093200 - - Crushed or ground (Seeds of Cumins) 40. - - Neither crushed nor ground (Seeds of Anise, 09096100 Badian, Caraway, Fennel etc) 41. - - Crushed or ground (Seeds of Anise, Badian, 09096200 Caraway, Fennel etc) 42. 09109910 - - - THYME; BAY LEAVES 43. 10031000 Barley (Seeds) 44. 10039000 Other (Barley) 45. 12060000 Sunflower seeds ,whether or not broken 46. 12129200 Locust beans 47. 12130000 Cereal straws and husks 48. 15161000 Animal Fats and Oil and their fractions 49. 15162010 Vegetable Fats and their fractions 50. 15162020 Vegetable Oils and their fractions 51. - - - Knives and cutting blades for paper and paper 82089010 board 52. -OF A FAT CONTENT, BY WEIGHT, NOT 04011000 EXCEEDING 1 % (Milk and Cream) 53. -OF A FAT CONTENT, BY WEIGHT, EXCEEDING 04012000 1 % BUT NOT EXCEEDING 6 % (Milk and Cream) 54. - Of a fat content, by weight, exceeding 6 % but not 04014000 exceeding 10% (Milk and Cream) 55. - Of a fat content, by weight, exceeding 10 % (Milk 04015000 and Cream) 56. -LEEKS AND OTHER ALLIACEOUS 07039000 VEGETABLES 57. 07041000 -CAULIFLOWERS AND HEADED BROCCOLI 58. 07042000 -BRUSSELS SPROUTS 59. 07051100 - - CABBAGE LETTUCE (HEAD LETTUCE) 645 Second Schedule – Part IV____ __________________________ 60. - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 07051900 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 61. - - WITLOOF CHICORY (CICHORIUM INTYBUS 07052100 VAR.FOLIOSUM) 62. - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 07052900 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 63. -OTHER which qualifies for exemption or concession or reduced rate under the provisions of 07069000 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 64. Fruits of the genus Capsicum or of the genus 07096000 Pimenta 65. 08042000 Figs 66. 08061000 -FRESH (Grapes) 67. 08062000 ---DRIED (Grapes) 68. 08071100 - - WATERMELONS 69. - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 08071900 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 70. 08081000 -APPLES 71. 09021000 Green Tea 72. 09022000 Other Green Tea 73. 09101200 - - Crushed or ground (Ginger) 74. 09103000 -TURMERIC (CURCUMA) 75. - - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 09109990 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 76. 17021110 Lactose (Sugar ) 77. 17021120 - - - Lactose syrup 78. - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 17021900 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 79. 17029020 - - - CARAMEL 646 Second Schedule – Part IV____ __________________________ 80. OIL-CAKE AND OTHER SOLID RESIDUES, WHETHER OR NOT GROUND OR IN THE FORM 23040000 OF PELLETS, RESULTING FROM THE EXTRACTION OF SOYA BEAN OIL. 81. 23099000 Other (animal feed) 82. 52042010 --- FOR Sewing (Thread) 83. 52042020 For embroidery (Thread) 84. 82011000 - Spades and shovels 85. Other (Tools for masons, watchmakers, miners and 82055900 hand tools nes) 86. - For kitchen appliances or for machines used by the 82083000 food industry 87. - - - Other which qualifies for exemption or concession or reduced rate under the provisions of 82089090 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 88. 04031000 -YOGURT 89. 07019000 Other (Potatoes) 90. 07104000 - Sweet corn 91. 07109000 - Mixtures of vegetables 92. 08041010 Fresh (Dates) 93. 08041020 Dried (Dates) 94. 08091000 -APRICOTS 95. 08092100 - - Sour cherries (Prunus cerasus) 96. - - Other which qualifies for exemption or concession or reduced rate under the provisions of 08092900 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 97. 08093000 -PEACHES, INCLUDING NECTARINES 98. 08094000 -PLUMS AND SLOES 99. 08101000 Strawberries 100. 08105000 Kiwi Fruit 101. 09101100 - - Neither crushed nor ground (Ginger) 102. 10011900 Other (Durum wheat (excl. seed for sowing)) 103. Other (Wheat and meslin (excl. seed for sowing, 10019900 and durum wheat)) 104. 11010010 Of Wheat (Flour) 105. 11010020 Of Meslin (Flour) 106. 19021920 - - - VERMACELLI 107. 19059000 Other (Packed Cake) 108. 20071000 Homogenised perparations 109. 20079100 Citrus Fruit 647 Second Schedule – Part IV____ __________________________ 110. Other which qualifies for exemption or concession or reduced rate under the provisions of Customs 20079900 Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 111. -ORGANIC SURFACE-ACTIVE PRODUCTS AND PREPARATIONS FOR WASHING THE SKIN, IN THE FORM OF LIQUID OR CREAM AND PUT UP FOR RETAIL SALE, WHETHER OR NOT 34013000 CONTAINING SOAP 112. 34022000 - Preparations put up for retail sale 113. ---- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance 34029000 Markets 114. Others (Tableware and kitchenware of porcelain or 69111090 china) 115. Other (Household articles nes & toilet articles of 69119000 porcelain or china) 116. Other (Glassware for table or kitchen purposes 70134900 (excl. glass having a linear c) 117. Other (Glassware nes (other than that of 70.10 or 70139900 70.18)) 118. 82159910 - - - Spoons 119. Other (Tableware articles not in sets and not plated 82159990 with precious meta)l 120. Bicycles and other cycles (including delivery 87120000 tricycles), not motorised. 121. 96170010 - - - Vacuum flasks 122. - - - OTHER which qualifies for exemption or concession or reduced rate under the provisions of 96170020 Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets (b) The provisions of section 154 shall not apply to the export of goods which takes place within the jurisdiction of Border sustenance markets specified in Table - II below:— TABLE-II 648 Second Schedule – Part IV____ __________________________ Sr.# PCT Description Heading 1. Other cuts with bone in (Meat of bovine animals, 02012000 fresh or chilled) 2. 02013000 Boneless (Meat of bovine animals, fresh or chilled) 3. Other cuts with bone in (Meat of bovine animals, 02022000 frozen) 4. 02023000 Boneless (Meat of bovine animals, frozen) 5. 03021100 Fish 6. 04090000 Honey 7. 06022000 Plants 8. 07011000 -SEED (Potatoes) 9. 07019000 Other (Potatoes) 10. 07020000 TOMATOES, FRESH OR CHILLED. 11. 07031000 -ONIONS AND SHALLOTS 12. 07032000 Garlic 13. 07061000 -CARROTS AND TURNIPS 14. -OTHER which qualifies for exemption or concession or reduced rate under the provisions 07069000 of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 15. 07070000 Cucumbers 16. 07093000 Egg Plant 17. Fruits of the genus Capsicum or of the genus 07096000 Pimenta (pepper) 18. 07099900 Others (Lady Finger) 19. 07101000 Fresh Potato 20. 07102100 Pea 21. 07103000 Spinach 22. 08031000 - Plantains (Bananas) 23. 08039000 - Other (Bananas) 24. 08041010 Fresh (Dates) 25. 08041020 Dried (Dates) 26. 08045020 --- Mangoes 27. 08052100 -- Mandarins (including tangerines and satsumas) 28. 08052910 ---Kino (fresh) 29. 08061000 Grapes (Fresh) 30. 08071100 - - WATERMELONS 31. 08071900 Melons 32. 08091000 Apricots 33. 08092900 Cherries 34. 08093000 Peaches 35. 08101000 Strawberries 36. 08109010 Pomegranates 649 Second Schedule – Part IV____ __________________________ 37. 08109090 Fresh fruits nes (Other) 38. 08133000 Apple 39. 09021000 Green Tea 40. 09022000 Other green tea 41. 09030000 Mate. 42. 09042110 Red Chillies (Whole) 43. --- Other which qualifies for exemption or concession or reduced rate under the provisions 09042190 of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 44. 09042210 Red Chillies (Powder) 45. --- Other which qualifies for exemption or concession or reduced rate under the provisions 09042290 of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 46. 09051000 - - Neither crushed nor ground (Vanilla) 47. 09052000 - - Crushed or ground (Vanilla) 48. 10061010 - - - SEED FOR SOWING (Rice) 49. - - - OTHER which qualifies for exemption or concession or reduced rate under the provisions 10061090 of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 50. 10062000 -HUSKED (BROWN) RICE 51. 10063010 - - - BASMATI (Rice) 52. - - - OTHER which qualifies for exemption or concession or reduced rate under the provisions 10063090 of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 53. 10064000 -BROKEN RICE 54. 11010010 Flour (of Wheat) 55. 12074000 - Sesamum seeds 56. 12079900 Other (hemp Seeds) 57. 12119000 Ajwain 58. 15162020 Vegetable Oils and their fractions 59. 19021920 - - - VERMACELLI 60. 19041090 Papad 61. 20071000 - Homogenised preparations 62. 20081900 --Nimko 63. 21069090 - - - OTHER (Custard Powder) 64. 23099000 Other (Animal feed) 65. 25010010 Table Salt 650 Second Schedule – Part IV____ __________________________ 66. 25010020 --- Rock Salt 67. 25010030 --- Sea Salt 68. --- Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance 25010090 Markets 69. 34060000 Candles 70. 36050000 Safety Match 71. 39264090 -OTHER (Plastic Articles) 72. Woven fabrics of jute or of other textile bast fibres, 53101000 unbleached 73. 53109010 - - - Jute (hessian cloth) 74. 56074100 - - Binder or baler twine 75. - - Other which qualifies for exemption or concession or reduced rate under the provisions 56074900 of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 76. 56075000 - Of other synthetic fibres 77. -- Unbleached (Terry toweling in similar woven 58021100 terry fabrics, of cotton) 78. -- Other (Terry toweling In similar woven Terry 58021900 fabrics, OF cotton) 79. - Terry towelling and similar woven terry fabrics, of 58022000 other textile materials 80. 58023000 - Tufted textile fabrics 81. 58043000 - Hand made lace 82. Hand-woven tapestries of the type Gobelins, Flanders, Aubusson, Beauvais and the like, and 58050000 needle-worked tapestries (for example, petit point, cross stitch), whether or not made up. 83. - Fabrics consisting of warp without weft 58064000 assembled by means of an adhesive (bolducs) 84. - Textile fabrics coated with gum or amylaceous 59011000 substances, of a kind used for the outer covers of books or the like 85. Mix Goods/Garments (Babies garments & clothg 61119000 accessories) 86. 62031990 ---OTHER (Men or Boys Suits etc.) 87. 62042200 - - Of cotton 88. 62042900 - - Of other textile materials 89. 62043900 - - Of other textile materials 90. 62044210 - - - Shisha embroidered dresses 651 Second Schedule – Part IV____ __________________________ 91. -OTHER which qualifies for exemption or concession or reduced rate under the provisions 62129000 of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 92. 63021090 -OTHER (Bed linen, Toilet linen etc.) 93. Jute Bags (of jute or of other textile bast fibres of 63051000 heading 53.03) 94. 63052000 Sacks and bags, for packing of goods, of cotton 95. 63090000 Worn clothing and other worn articles 96. Other (Tableware and kitchenware of porcelain or 69111090 china) 97. Others (Household articles nes & toilet articles of 69119000 porcelain or china) 98. Drinking glasses (excl. glasses of glass ceramics 70133700 or of lead crystal a 99. 73181690 Nuts, iron or steel, nes (Others) 100. Tools for masons, watchmakers, miners and hand 82055900 tools nes (Other) 101. Hand tools (Other, including sets of articles of two 82059000 or more subheadings of this heading) 102. 82119100 - - Table knives having fixed blades 103. 82119200 - - Other knives having fixed blades 104. Tableware articles not in sets and not plated with 82159990 precious metal 105. 84485100 Needle 106. 96170010 - - - Vacuum flasks 107. - - - Other which qualifies for exemption or concession or reduced rate under the provisions of Customs Act, 1969 and Sales Tax Act, 1990 or Federal Excise Act, 2005 for Border Sustenance Markets 96170020 The exemption under this clause shall be available on the import of goods subject to following conditions, namely:— (i) Such goods shall be supplied only within the limits of Border Sustenance Markets established in cooperation with Iran and Afghanistan; (ii) If the g oods, on which exemption under this table has been availed, are brought outside the limits of such markets, income tax shall be charged on the import value as per provisions of section 148 of this Ordinance; (iii) Such items in case of import, shall be allowed clearance by the 652 Second Schedule – Part IV____ __________________________ Customs Authorities subject to furnishing of bank guarantee equal to the amount of income tax involved and the same shall be released after presentation of consumption certificate issued by the Commissioner Inland Revenue having jurisdiction; (iv) The said exemption shall only be available to a person upon furnishing proof of having a functional business premises located within limits of the Border Sustenance Markets; and (v) Breach of any of the conditions specified herein shall attract relevant legal provisions of the Ordinance, besides recovery of the amount of income tax along with default surcharge and penalties involved.] 1[ ] 2[(12O) The provisions of section 148 shall not apply on import of drones donated by Ministry of Agriculture and Rural Affairs (MARA), Government of China to Pakistan through Sea Route. (12P) The provisions of section 148 shall not apply on import of machinery and equipment as listed in S. No 32 of Part-I of Fifth Schedule to the Customs Act, 1969 subject to the same conditions and limitations as specified therein.] 3[ ] 4[ ] 5[ ] 6[ ] 1 Clause (12)(c) omitted by SRO 550(I)/2012 dated 23-5-20012. The Omitted clause (12)(c) read as: follows:- “(12)(c) Withholding Tax under clause (a) of sub-section (1) of section 153 shall be deductible at one per cent on local purchase of steel scrap by those steel melters who have opted under Sales Tax Special Procedures and are compliantly filing returns under the said scheme.” 2 New clauses (12O) and (12P) added by the Finance Act 2022. Earlier clause (12O) was added through SRO 1407(I)/2021 dated 29.10.2021. 3 Clause (13) omitted by the Finance Act, 2005. The omitted clause (13) read as follows: “(13) The provisions of section 113 shall not apply to Hub Power Company Limited so far as they relate to its receipts on account of sale of electricity.” 4 Clause (13A) omitted by the Finance Act, 2005. The omitted clause (13A) read as follows: “(13A) The provisions of section 113 shall not apply to KotAddu Power Company Limited (KAPCO) for the period it continues to be entitled to exemption under clause (138) of Part-I of this Schedule.” 5 Clause (14) omitted by the Finance Act, 2006. The omitted clause (14) read as follows: “(14) A company registered and authorized by the Federal Government to import gold and silver shall be liable to pay tax on import of gold at the rate of two rupees per eleven grams six hundred and sixty-four milligrams and five rupees per kilogram in the case of silver in accordance with the provisions of section 148 and such payment of tax shall be deemed to be full and final liability of tax in respect of income accruing from such import including liability of tax under section 113.” 6 Clause (15) omitted by the Finance Act, 2005. The omitted clause (15) read as follows: “(15) The provisions of section 113 shall not apply to companies, qualifying for exemption under 653 Second Schedule – Part IV____ __________________________ (16) The provisions of sections 1[113,] 148, 151, 153, 155 2[and 156] shall not apply to the institutions of the Agha Khan Development Network (Pakistan) listed in Schedule 1 of the Accord and Protocol dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network: Provided that such institutions shall continue to collect and deduct tax under section 3[149, 151, 152, 153, 155, 156 or 233] from others persons, wherever required thereunder 4[.] 5[ ] 6[ ] 7[ ] 8[ ] (19) The provisions of 9[sections 113 and] 151 shall not apply to non-residents, (excluding local branches or subsidiaries or offices of foreign banks, companies, associations of persons or any other person operating in Pakistan), in respect of their receipts from Pak rupees denominated Government and corporate securities and redeemable capital, as defined in the 10[Companies Act, 2017 (XIX of 2017)], listed on a registered stock exchange, where the investments are made exclusively from foreign exchange remitted into Pakistan through a Special Convertible Rupee Account maintained with a bank in Pakistan. clause (132) of Part-I of this Schedule, in respect of receipts from sale of electricity.” 1 Inserted by the Finance Act, 2009. 2 The comma, figures and words ” ,156 and 157” substituted by the Finance Act, 2003. 3 The figure “113” substituted by the Finance Act, 2003. 4 Colon substituted by the Finance Act, 2008. 5 Clause (16A) omitted by the Finance Act, 2015. The omitted clause (16A) read as follows:- “(16A) The provisions of section 153(1)(b) shall not be applicable to the persons making payments to electronic and print media in respect of the advertising services. 6 Proviso omitted by the Finance Act, 2008. The omitted proviso read as follows: “Provided further that in respect of application of section 113, this clause shall take effect from the first day of July, 1991.” 7 Clause (17) omitted by the Finance Act, 2005. The omitted clause (17) read as follows: “(17) The provisions of section 113, shall not apply to Provincial Governments and local authorities, qualifying for exemption under section 49 and other Government or semi-Government bodies which are otherwise exempt from income tax: Provided that nothing contained in this clause shall be construe to authorize any refund of tax already paid or the collection of any outstanding demand created under the said section.” 8 Clause (18) omitted by the Finance Act, 2005. The omitted clause (18) read as follows: “(18) The provisions of section 113 shall not apply to Pakistan Red Crescent Society.” 9 The word “section” substituted by the Finance Act, 2009. 10 The expression “Companies Ordinance, 1984 (XLVII of 1984)” substituted by the Finance Act, 2021. 654 Second Schedule – Part IV____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 9[ ] 10[ ] 11[ ] 1 Clause (20) omitted by the Finance Act, 2005. The omitted clause (20) read as follows: “(20) The provisions of section 113 shall not apply to special purpose, non-profit companies engaged in securitizing the receivables of Provincial Governments or the companies.” 2 Clause (21) omitted by the Finance Act, 2005. The omitted clause (21) read as follows: “(21) The provisions of section 113 shall not apply to non-profit organisations approved under clause (36) of section 2 or clause (58) or included in clause (61) of Part-I of this Schedule.” 3 Clause (22) omitted by the Finance Act, 2005. The omitted clause (22) read as follows: “(22) The provisions of section 113 shall not apply to a taxpayer who qualifies for exemption under clause (133) of Part-I of this Schedule.” 4 Clause (22A) omitted by the Finance Act, 2005. The omitted clause (22A) read as follows: “ (22A) The provisions of section 113 shall not apply to a resident person engaged in the business of shipping who qualifies for application of reduced rate of tax on tonnage basis as final tax under clause (21) of Part II of the Schedule.” 5 Clause (23) omitted by the Finance Act, 2005. The omitted clause (23) read as follows: “(23) The provisions of section 113 shall not apply to a venture capital company and venture capital fund which is exempt under clause (101) of Part-I of this Schedule.” 6 Clause (24) omitted by the Finance Act, 2005. The omitted clause (24) read as follows: “(24) The provisions of section 113 shall not apply to a modaraba registered under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (XXXI of 1980).” 7 Clause (25) omitted by the Finance Act, 2005. The omitted clause (25) read as follows: “(25) Nothing in section 113 shall apply to Corporate and Industrial Restructuring Corporation (CIRC).” 8 Clause (26) omitted by the Finance Act, 2005. The omitted clause (26) read as follows: “(26) The provisions of section 148 shall not apply to goods or classes of goods imported by contractors and sub-contractors engaged in the execution of power project under the agreement between the Islamic Republic of Pakistan and Hub Power Company Limited.” 9 Clause (27) omitted by the Finance Act, 2005. The omitted clause (27) read as follows: “(27) The provisions of section 148 shall not apply to such specially equipped motor vehicle or support equipment imported by a disabled person, as is allowed by the Federal Government.” 10 Clause (28) omitted by the Finance Act, 2005. The omitted clause (28) read as follows: “(28) The provision of section 148 shall not apply to in case of such goods imported into Pakistan as are exempt from customs duties and sales tax under Headings 9913, 9914 and 9915 of Sub- Chapter III of Chapter 99 of First Schedule the Customs Act, 1969 (IV of 1969).” 11 Clause (29) omitted by the Finance Act, 2005. The omitted clause (29) read as follows: “(29) The provisions of section 148 shall not apply to goods imported by direct and indirect exporters covered under — (a) Sub-Chapter 4 of Chapter XII of S.R.O. 450(I)/2001 dated 18.06.2001; (b) Sub-Chapter 6 of Chapter XII of S.R.O. 450(I)/2001 dated 18.06.2001; and (c) Sub-Chapter 7 of Chapter XII of S.R.O. 450(I)/2001 dated 18.06.2001;” 655 Second Schedule – Part IV____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 9[ ] 1 Clause (30) omitted by the Finance Act, 2005. The omitted clause (30) read as follows: “(30) The provisions of section 148 shall not apply in respect of goods specified under Heading 9929, Sub-Chapter VIII of Chapter 99 of the First Schedule to the Customs Act, 1969 (IV of 1969);” 2 Clause (31) omitted by the Finance Act, 2005. The omitted clause (31) read as follows: “(31) The provisions of section 148shall not apply in respect of such mobile telephone sets as are exempt from custom duty and are charged to sales tax in the manner prescribe in the Notification No. S.R.O 390(I)/2001 dated 18th June, 2001.” 3 Clause (31A) omitted by the Finance Act, 2005. The omitted clause (31A) read as follows: “(31A) The provisions of section 148 shall not apply to plant, machinery and equipment imported as are subject to 5% rate of customs-duty under Chapter 84 of the First Schedule to the Customs Act, 1969 (IV of 1969), or are exempt from customs-duty or subject to a lower rate of customs-duty under relevant Customs notifications.” 4 Clause (31B) omitted by the Finance Act, 2005. The omitted clause (31B) read as follows: “(31B) The provisions of section 148 shall not apply in respect of agricultural tractors imported in CBU condition.” 5 Clause (32) omitted by the Finance Act, 2003. The omitted clause (32) read as follows: “(32) The provisions of sections 149 and 152 relating to fee for technical services shall not apply to M/s Siddiq Sons Tin Plate Limited in respect of salaries of expatriate employees, royalty or technological and know-how fee for technical assistance for projects located in Special Industrial Zone, Windher, Balochistan, who have established L/Cs prior to the 31st January, 1996.” 6 Clause (33) omitted by the Finance Act, 2008. The omitted clause (33) read as follows: “(33) The provisions of sections 151 and 233 shall not apply to any person making payment to National Investment (Unit) Trust or a mutual fund established by the Investment Corporation of Pakistan or an investment company registered under the Investment Companies and Investment Advisers Rules 1971 or a unit trust scheme constituted by an Asset Management Company registered under the Asset Management Companies Rules, 1995 or a real investment trust, approved and authorized under the Real Estate Investment Trust Rules, 2006, established and managed by a REIT management company licensed under the Real Estate Investment Trust Rules, 2006 or a Private Equity and Venture Capital Fund.” 7 Clause (34) omitted by the Finance Act, 2005. The omitted clause (34) read as follows: “(34) The provision of section 151 shall not apply in respect of profit or interest paid on a Term Finance Certificate held by a company which has been issued on, or after, the first day of July, 1999.” 8 Clause (35) omitted by the Finance Act, 2005. The omitted clause (35) read as follows: “(35) The provisions of section 151 shall not apply to any payment made by way profit or interest to any person on Term Finance Certificates being the instruments of redeemable capital under the Companies Ordinance, 1984 (XLVII of 1984), issued by Prime Minister’s Housing Development Company (Pvt) Limited (PHDCL).” 9 Clause (36) omitted by the Finance Act, 2008. The omitted clause (36) read as follows: “(36) The provisions of clause (c) of sub-section (1) of section 151 shall not apply in respect of any amount paid as interest or profit on Special US Dollar Bonds issued under the Special US Dollar Bonds Rules, 1998.” 656 Second Schedule – Part IV____ __________________________ 1[(36A) The provisions of clause (a) of sub-section (1) of section 151 shall not apply in respect of any amount paid as yield or profit on investment in Bahbood Savings Certificate or Pensioner’s Benefit Account 2[and Shuhada Family Welfare Account.] 3[(36B) The provisions of section 151 shall not apply to profit on debt paid on promissory notes and sales tax refund bonds issued under the provisions of the Sales Tax ,Act, 1990. (36C) The provisions of section 151 shall not apply to profit on debt paid on Pakistan Banao Certificate, (36D) The provisions of sections 150 and 151 shall not be apply to SARMAYA-E- PAKISTAN LIMITED (36E) The provisions of section 151 shall not apply on profit on debt paid on bonds issued under the Federal Government Duty Drawback Bonds Rules,2019] 4[ ] (38) The provisions of section 151, 5[153 6[“,233 and 236Q”] ] shall not apply to special purpose vehicle for the purpose of securitization7[“or issue of sukuks”]. 8[(38A) The provisions of sections 150, 151 and 233 shall not apply to a Venture Capital Company;] 9[(38AA) The provisions of section 150 shall not apply to China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty-three years.] 10[(38AAA) The provisions of section 152 shall not apply to Special Purpose Vehicle referred to in clause 99B of Part I of this Schedule.] 1 Inserted by the Finance Act, 2004. 2 Inserted by the Finance Act, 2018 3 New Clauses 36B, 36C, 36D & 36E inserted through Finance Supplementary (Second Amendment) Act, 2019 4 Clause (37) omitted by the Finance Act, 2005. The omitted clause (37) read as follows: “(37) The provisions of section 151 shall not apply to Pak rupee accounts or certificates referred to in clause (83) of Part I of this Schedule.” 5 Inserted by the Finance Act, 2002. 6 The figure and word “and 233” substituted by the Presidential Order No.F.2(1)2016-Pub dated 31.08.2016. 7 Added by the Presidential Order No.F.2(1)2016-Pub dated 31.08.2016. 8 Inserted by the Finance Act, 2004. 9 inserted by the Finance Act, 2016. 10 Clause (38AAA) inserted by the Finance Act, 2024. 657 Second Schedule – Part IV____ __________________________ 1[ ] 2[(38C) The provisions of section3[150,] 151, 152, 153 and 233 shall not apply to the Islamic Development Bank.] 4[(38D) The provisions of section 151 and 153 shall not apply to the National Disaster Risk Management Fund.] 5[ ] 6[ ] 7[ ] 8[ ] 1 Clause (38B) omitted by Finance Act, 2014. The omitted clause (38B) read as follows: “(38B) The provisions of section 150 shall not apply to the Islamic Development Bank.” 2 Clause (38C) inserted by the Finance Act, 2011.. 3 The figure and comma “150,” inserted by Finance Act, 2014. 4 New clause (38D) inserted through Finance Supplementary (Second Amendment) Act, 2019 5 Clause (39) omitted by the Finance Act, 2003. The omitted clause (39) read as follows: “(39) The provisions of section 151 shall not apply to a person who produces a certificate from the Commissioner of Income Tax concerned to the effect that his income during the income year is exempt from tax.” 6 Clause (40 omitted by the Finance Act, 2005. The omitted clause (40) read as follows: “(40) The provisions of sub-section (6) of section 153in so far as they relate to payments on account of supply of goods from which tax is deductible under the said section shall not apply in respect of any person being a manufacturer of such goods, unless he opts for the presumptive tax regime: Provided that a declaration of option is furnished in writing within three months of the commencement of the tax year and such declaration shall be irrevocable and shall remain in force for three years: Provided further nothing contained in this clause shall apply to any manufacturer of goods for which special rates of deduction of tax are specified under the repealed Ordinance.” 7 Clause (41) omitted by the Finance Act, 2017. The omitted clause (41) read as follows: “(41)The provisions of 7[sub-section “7[(1B) of section 152]] shall not apply in respect of a non- resident person unless he opts for the presumptive tax regime: Provided that a declaration of option is furnished in writing within three months of the commencement of the 7[tax] year and such declaration shall be irrevocable and shall remain in force for three years.” 8 Clause (41A) omitted by Finance Act 2014. The omitted clause (41A) read as follows: “(41A) The provisions of sub-section (7) of section 148 and clause (a) of sub-section (1) of section 169 shall not apply in respect of a person if he opts out of presumptive tax regime subject to the condition that minimum tax liability under normal tax regime shall not be less than 60% of tax already collected under sub-section (7) of section148.” Earlier Clause (41A) was omitted by the Finance Act, 2008. Which was inserted by S.R.O. 1130(I)/2005, dated 14.11.2005 and read as follows: “(41A) Notwithstanding anything contained in the Finance Act, 2005 (VII of 2005), with respect to the omission of clause (40) of Part IV of the Second Schedule to this Ordinance, nothing in sub-section (6A) of Section 153 of this Ordinance shall apply to any person being a manufacturer, where declaration of option for the presumptive tax regime has been furnished and transactions pertaining to such option have been undertaken and completed on or before the 30th June, 2005: Provided that all declaration of options already furnished shall cease to have effect after the 30th June, 2005.” 658 Second Schedule – Part IV____ __________________________ 1[ ] 2[ ] 3[ ] (42) The provisions of 4[sub-section 5[(3)] of section 153] shall not apply in respect of payments received by a resident person for providing services by way of operation of container or chemical or oil terminal at a sea-port in Pakistan or of an infrastructure project covered by the Government’s Investment Policy, 1997. 6[ ] 7[ ] 8[(43A) The provisions of sub-section (1) of section 153 shall not apply to payments received by a person 9[ ] on account of supply of petroleum product imported by the same person under the Government of Pakistan’s deregulation policy of POL products;] 10[(43B) The provisions of clause (a) sub-section (1) of section 153 shall not apply 1 Clause (41AA) omitted by Finance Act 2014. The omitted clause (41AA) read as follows: “(41AA) The provisions of sub-section (4) of section 154 and clause (b) of sub-section (1) of section 169 shall not apply in respect of a person if he opts out of presumptive tax regime subject to the condition that minimum tax liability under normal tax regime shall not be less than 50% of tax already deducted under sub-section (4) of section 154.” 2 Clause (41AAA) omitted by Finance Act 2014. The omitted clause (41AAA) read as follows: “(41AAA) The provisions of clause (a) of sub-section (1) of section 153 and clause (b) of sub-section (1) of section 169 shall not apply in respect of a person if he opts out of presumptive tax regime subject to the condition that minimum tax liability under normal tax regime shall not be less than 70% of tax already deducted under clause (a) of sub-section (1) of section 153.” 3 Clause (41B) omitted by Finance Act 2014. The omitted clause (41B) read as follows: “(41B)The provisions of sub-section (2) of section 152 shall not apply in respect of payments to foreign news agencies, syndicate services and non-resident contributors, who have no permanent establishment in Pakistan” 4 Substituted for the word and figure “section 153” by the Finance Act, 2002 5 The brackets and figure (6) substituted by the Finance Act, 2011. 6 Omitted by the Finance Act, 2008. The omitted clause (42A) read as follows: “(42A) The provisions of sub-section (6) of section 153 shall not apply in respect of payments received by a person for supply of relief goods for earthquake victims against funds from the President Relief Fund for Earthquake Victims, 2005, or any other such source of the Government or the purchases made by approved voluntary Non-Profit Organizations or welfare bodies for the aforesaid purpose.” 7 Clause (43) omitted by the Finance Act, 2004. The omitted clause (43) read as follows: “(43) The provisions of sub-section (1) of section 153shall not apply to payments received by Pak- Arab Refinery Limited on account of supply of its products.” 8 Clause (43A) substituted by the Finance Act, 2003. The substituted clause (43A) read as follows: “(43A) The provisions of section 153, shall not apply to payments received by M/s Total PARCO Pakistan Limited for the supply of petroleum products.” 9 The words and brackets “including Permanent Establishment of Non-resident Petroleum Exploration and Production (E&P) Companies” omitted by the Finance Act, 2008. 10 Inserted by the Finance Act, 2007. Earlier it was omitted vide Finance Act, 2003 which read as follows: “(43B) The provisions of section 153 shall not apply to the payments received by Al Rahim Trading Co. (Pvt) Limited, Karachi for the supply of petroleum products.” 659 Second Schedule – Part IV____ __________________________ to payments received on sale of air tickets by travelling agents, who have paid withholding tax on their commission income.] 1[(43C) The provision of clause (a) of sub-section (1) of section 153 shall not be applicable to any payment received by a petroleum agent or distributor who is registered under Sales Tax Act, 1990 on account of supply of petroleum products.] 2[(43D) The provisions of 3[clauses (a) and (b)] of sub-section (1) of section 153 shall not apply in case of an oil tanker contractor with effect from 1st July 2008, provided that such contractor pays tax @ 2.5%, on the payments for rendering or providing of carriage services 4[ ] ].] 5[(43E) The provisions of 6[clauses (a) and (b)] of sub section (1) of section 153 shall not apply in case of goods transport contractors, provided that such contractors pay tax at the rate of 7[ ] 8[3.5%] on payments for rendering or providing of carriage services.] 9[(43F) The provisions of section 153 shall not apply in the case of a start-up, being recipient of payment, as defined in clause (62A) of section 2.] 10[(43G) The provisions of section 153 shall not apply to commodity futures contracts listed on a Futures Exchange licensed under the Futures Market Act, 2016 (XIV of 2016).] 11[(43H) The provisions of clause (b) of sub-section (1) of section 153 shall not apply to an exhibitor or a distributor of a feature film, as a payer, on payment made to a distributor, producer or importer of a feature film.] 1 Added by S.R.O. 57(I)/2012, dated 24.01.2012. Earlier it was inserted by S.R.O. 961(I)/2002, dated 23.12.2002 and then omitted by the Finance Act, 2003. The omitted clause (43C) read as follows: “(43C) The provisions of section 153 shall not apply to the payments received by Hascombe Storage (PVT) Limited, Karachi, for the supply of petroleum products.” 2 Inserted by S.R.O. 126(I)/2013, dated 13.02.2013. Earlier it was inserted by S.R.O. 253(I)/2003, dated 07.03.2003 and then omitted by the Finance Act, 2003. The omitted clause (43D) read as follows: “(43D) The provisions of section 153 shall not apply to the payments received by M/s. Overseas Trading Corporation, Karachi, for the supply of petroleum products.” 3 The expression “clause (a)” substituted by the Finance Act, 2021. 4 The expression “w.e.f. tax year 2012” omitted by the Finance Act, 2021. 5 Inserted by S.R.O 980(I)/2013, dated 18.11.2013. Earlier it was inserted by S.R.O. 408(I)/2003, dated 08.05.2003 and then omitted by the Finance Act, 2003. The omitted clause (43E) read as follows: “(43E) The provisions of section 153 shall not apply to the payments received by M/s. ICI Pakistan Limited, for the supply of petroleum products.” 6 The expression “clause (a)” substituted by the Finance Act, 2021. 7 Figure “2.5” substituted through Finance Act, 2019. 8 The figure “3%” substituted by the Finance Act, 2021. 9 Inserted by the Finance Act, 2017. 10 Clause (43G) inserted by the Finance Act, 2021. 11 Clause (43H) inserted by the Finance Act, 2022. 660 Second Schedule – Part IV____ __________________________ 1[ ] (45) The provisions of 2[sub-section 3[(1)] of section 153] shall not apply to any manufacturer-cum-exporter as 4[the prescribed person]: Provided that— (a) the manufacturer-cum-exporter shall deduct tax from payments made in respect of goods sold in Pakistan; (b) if tax has not been deducted from payments on account of supply of goods in respect of goods sold in Pakistan, the tax shall be paid by the manufacture-cum-exporter, if the sales in Pakistan are in excess of five per cent of export sales 5[.] ] 6[(45A) 7[ ] The rate of deduction of withholding tax under clauses (a) and (b) of sub-section (1) of section 153 shall be one per cent on local sales, supplies 1 Clause (44) omitted by the Finance Act, 2005. The omitted clause (44) read as follows: “(44) The provisions of section 148shall not apply to an indirect exporter as defined in the Duty and Tax Remission for Export Rules, 2001 issued under Notification No. S.R.O. 185(I)/2001, dated the 21st March 2001.” 2 The word and figure “section 153” substituted by the Finance Act, 2002. 3 The brackets and figure “(6)” substituted by the Finance Act, 2003. 4 The words “a payer” substituted by the Finance Act, 2003. 5 The expression “; and” and paragraph (c) omitted by the Finance Act, 2021. The omitted paragraph read as follows: “(c) nothing contained in this clause shall apply to payments made on account of purchase of the goods in respect of which special rates of tax deduction have been specified 5[under the provisions of the repealed Ordinance.]” 6 Clause (45A) substituted by S.R.O. 333(I)/2011, dated 02.05.2011. The substituted clause (45A) read as follows: “(45A) (a) The rate of deduction of withholding tax under clauses (a) and (b) of sub-section (1) of section 153 shall be one per cent on local sales, supplies or services made or rendered to the following categories of sales tax zero- rated taxpayers, namely:— (i) textile and articles thereof; (ii) carpets; (iii) leather and articles thereof including artificial leather footwear; (iv) surgical goods; and (v) sports goods; (b) provisions of clause (a) of sub-section (1) of section 111 of the Income Tax Ordinance, 2001 (XLIX of 2001) shall not apply to the amounts credited in the books of accounts maintained for the period ending the 30th June, 2011 by the sellers suppliers, service providers to the categories of sales tax zero-rated tax payers as mentioned at sub-clause (i) above; and (c) provisions of sub-clauses (a) and (b) above shall be applicable only to new cases of sellers, suppliers, service providers of the above mentioned categories of sales tax zero-rated taxpayers, who get themselves registered by the 30th June, 2011.” 7 The expression “(a)” omitted by the Finance Act, 2021. 661 Second Schedule – Part IV____ __________________________ and services provided or rendered to the 1[taxpayers falling in the] following categories 2[ ] namely:- (i) textile and articles thereof; (ii) carpets; (iii) leather and articles thereof including artificial leather footwear; (iv) surgical goods; and (v) sports goods; 3[Explanation.—For removal of doubt, it is clarified that the relief of reduced rate for withholding tax under clause (a) and (b) of subsection (1) of section 153 is available only to the local sales, supplies and services made by the taxpayers of categories specified at serial no (i) to (v) of this clause:] 4[Provided that the rate of deduction of withholding tax under clauses (a) and (b) of sub-section (1) of section 153 shall be 0.5% on local sales, supplies and services made by traders of yarn to the above mentioned categories of taxpayers.] 5[ ] 6[ ] ] 7[(45B) The provisions of section 153 shall not apply on the purchase of used motor vehicles from general public.] 1 Words inserted by S.R.O 669(I)/2013, dated 17.07.2013. 2 The words “of sales tax zero-rated taxpayers,” omitted by S.R.O 669(I)/2013, dated 17.07.2013. 3 Explanation inserted by the Finance Act, 2021. 4 26th Proviso substituted through Tax Laws(Second Amendment) 2019 dated December, 2019, the substituted proviso read as under: “Provided that withholding tax under clauses (a) and (b) of sub-section (1) of section 153 shall not be deducted from sales, supplies and services made by traders of yarn to the above mentioned categories of taxpayers. Such traders of yarn shall pay minimum tax @ 0.1% on their annual turnover on monthly basis on 30th day of each month and monthly withholding tax statement shall be e-filed under the provisions of section 165 of this Ordinance.” 5 Sub-clause (b) omitted by the Finance Act, 2021. The sub-clause read as follows: “(b) provisions of clause (a) of sub-section (1) of section 111 of this Ordinance shall not apply to the amounts credited in the books of accounts maintained for the period ending on the 30th June 2011, by the sellers, suppliers, service providers to the categories of sales tax zero-rated taxpayers, as mentioned in sub-clause (a) [.]” 6 Sub-clause (c) omitted through Tax Laws (Second Amendment) Ordinance 2019 dated 28th December, 2019. omitted sub-clause read as under: “(c) provisions of sub-clauses (a) and (b) shall be applicable only to the cases of sellers, suppliers, service providers of the above mentioned categories of sales tax zero- rated taxpayers, who are already registered and to those taxpayers who get themselves registered by the 30th June, 2011.” 7 Clause (45B) added by the Finance Act, 2021. 662 Second Schedule – Part IV____ __________________________ 1[(46) The provisions of sub-section (1) of section 153 shall not apply to any payment received by an oil distribution company or an oil refinery 2[3[“and provisions of sub-section (2A) of section152 shall not apply to”] Permanent Establishment of Non-resident Petroleum Exploration and Production (E&P) Companies] for supply of its petroleum products.] 4[(46A) the provisions of sub-section 5[(3)] of section 153 shall not apply to any payment received by a manufacturer of iron and steel products relating to sale of goods manufactured by him.] 6[(46AA) The provisions of section 153 shall not apply to the following persons as recipients of payment, namely:— (i) a Provincial Government; (ii) a local authority; (iii) persons who are residents of Azad Kashmir and execute contracts in Azad Kashmir only and produce a certificate to this effect from the concerned income tax authority; 7[(iv) subject to fulfillment of procedure laid down in clause (12) of Part IV of Second Schedule, persons receiving payments exclusively for the supply of agriculture produce including following— (I) fresh milk; (II) fish by any person engaged in fish farming; 1 Clause (46) substituted by the Finance Act, 2004. The substituted clause (46) read as follows: “(46) The provisions of sub-section (1) of section 153, shall not apply in respect of payments received on account of supply of petroleum products by Attock Petroleum Limited.” 2 Inserted by the Finance Act, 2008. 3 Substituted by the Finance Act, 2015. 4 22nd Inserted by S.R.O. 847(I)/2007, dated August, 2007. 5 The brackets and figure “(6)” substituted by the Finance Act, 2011. 6 30th New clause (46AA) inserted through Finance Act 2020 dated June, 2020 7 Sub-clause (iv) and (v) substituted by the Finance Act, 2021. The substituted sub-clauses read as follows: “(iv) persons receiving payments from a company or an association of persons having turnover of fifty million rupees or more or from an individual having turnover of fifty million rupees or more exclusively for the supply of agriculture produce including fresh milk, fish by any person engaged in fish farming, live chicken, birds and eggs by any person engaged in poultry farming and by an industrial undertaking engaged in poultry processing which has not been subjected to any process other than that which is ordinarily performed to render such produce fit to be taken to market; (v) companies receiving payments for the supply of electricity and gas;” 663 Second Schedule – Part IV____ __________________________ (III) live chicken, birds and eggs by any person engaged in poultry farming; (IV) live animals by any person engaged in cattle farming; (V) unpackaged meat; and (VI) raw hides: Provided that this clause shall not apply to the payments for agriculture produce which has been subjected to any process other than that which is ordinarily performed to render such produce to be fit to be taken to the market.”; and (v) companies receiving payments for the supply of electricity and gas including companies receiving payments for the transmission of electricity and gas.] (vi) companies receiving payments for the supply of crude oil; (vii) hotels and restaurants receiving payments in cash for providing accommodation or food or both, as the case may be; (viii) shipping companies and air carriers receiving payments for the supply of passenger tickets and for the cargo charges of goods transported; (ix) individuals who are not registered under section 181 of the Ordinance, receiving payments for the supply of sand, bricks, grit, gravel, crushed stone, soft mud or clay; and (x) artisans, plumbers, electricians, surface finishers, carpenters, painters or daily wagers, receiving payments in respect of services provided or rendered to the construction sector including construction of buildings, roads, bridges and other such structures or the development of land, subject to the following conditions, namely:— (a) services under this clause are provided or rendered by an individual who is not registered under section 181; (b) the name, Computerized National Identity Card Number and address of such individual is recorded by the recipient of such service; and (c) payment for such services is made directly to such individual.”;] 664 Second Schedule – Part IV____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[(47A) The provisions of section 153 shall not apply in respect of payments received by a resident person for supply of such goods as were imported by the same person and on which tax has been paid under section 148.] 6[(47B) The provisions of sections 150, 151 7[, ] 233 8[and Part I, Division VII of the First Schedule] shall not apply to any person making payment to National Investment Unit Trust or a collective investment scheme 9[ ] or Approved Pension Fund or an Approved Income Payment Plan or a REIT Scheme 10[including Special Purpose Vehicle] 11[ ] or a recognized provident fund or an approved superannuation fund or an approved gratuity fund.] 1 .Clause (46A) omitted by the Finance Act, 2004. Earlier clause (46A) was inserted by S.R.O. 855(I)/2003 dated 29.08.2003. The omitted clause (46A) read as follows: “(46A) The provisions of sub-section (1) of section 153, shall not apply to the payments received by M/s. TOTAL PARCO Pakistan Limited (TPPL) for the supply of petroleum products.” 2 Clause (46B) omitted by the Finance Act, 2009. The omitted clause (46B) read as follows: “(46B) the provisions of sub-section (6B) of section 153, in so far as they relate to payments on account of sale of goods from which tax is deductible under section 153, shall not apply in respect of an individual or association of persons being a manufacturer of such goods, for the tax year 2007.” 3 Clause (46C) omitted by the Finance Act, 2004. Earlier clause (46C) was inserted by S.R.O. 857(I)/2003 dated 27.08.2003. The omitted clause (46C) read as follows: “(46C) The provisions of sub-section (1) of section 153, shall not apply to the payments received by M/s. Bosicor Pakistan Limited for the supply of its products.” 4 Clause (47) omitted by the Finance Act, 2009. The omitted clause (47) read as follows: “(47) The provisions of sections 151 and 155 shall not apply to a person who produces a certificate from the Commissioner of Income Tax concerned to the effect that his income during the income year is exempt from tax.” 5 Added by the Finance Act, 2002. 6 Clause (47B) substituted by the Finance Act, 2008. The substituted clause (47B) read as follows: “(47B) The provisions of sections 150, 151 and 233 shall not apply to any person making payment to National Investment (Unit) Trust or a mutual fund established by the Investment Corporation of Pakistan or a collective investment scheme authorized or registered under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 or a modaraba or Approved Pension Fund or an Approved Income Payment Plan constituted by a Pension Fund Manager registered under Voluntary Pension Systems Rules, 2005 or a Real Estate Investment Trust approved and authorized under the Real Estate Investment Trust Rules, 2006, established and managed by a REIT Management Company licensed under the Real Estate Investment Trust Rules, 2006 or a Private Equity and Venture Capital Fund.” 7 The words “and” substituted by the Finance Act, 2012. 8 Inserted by the Finance Act, 2012. 9 The words “or a modaraba” omitted by the Finance Act, 2021. 10 Words inserted by the Finance (Supplementary) Act, 2022. 11 The words “or a Private Equity and Venture Capital Fund” omitted by the Finance Act, 2021. 665 Second Schedule – Part IV____ __________________________ 1[Explanation.— For the purpose of this clause, Special Purpose Vehicle shall have the same meaning as defined under the Real Estate Investment Trust Regulations, 2015.] 2[(47C) The provisions of sub-section (1) of section 154 shall not apply to an exporter in respect of cooking oil or vegetable ghee exported to Afghanistan, from whom advance tax has been collected under section 148 on import of edible oil.] 3[(47D) The provisions of clause (a) of sub-section (3) of section 153 shall not apply to cotton ginners.] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 9[ ] 1 Explanation added by the Finance (Supplementary) Act, 2022. 2 Inserted by the Finance Act, 2004. 3 Clause (47D) substituted by the Finance Act, 2011. The substituted clause (47D) read as follows: “(47D) The provisions of sub-section (6A) of section 153 shall not apply to cotton ginners.” 4 Clause (48) omitted by the Finance Act, 2003. The omitted clause (48) read as follows: “(48) The provisions of section 236 shall not apply to a person who produces a certificate from the Commissioner of Income Tax concerned to the effect that his income during the income year is exempt from tax.” 5 Clause (49) omitted by the Finance Act, 2003. The omitted clause (49) read as follows: “(49) The provisions of section 236 shall not apply where the subscriber is a non-taxable non-profit organization.” 6 Clause (50) omitted by the Finance Act, 2003. The omitted clause (50) read as follows: “(50) The provisions of section 234 shall not apply to a person who produces a certificate from Commissioner of Income Tax concerned to the effect that his income during the income year is exempt from tax.” 7 Clause (51) omitted by the Finance Act, 2003. The omitted clause (51) read as follows: “(51) The provisions of section 235 shall not apply to a person who produces a certificate from the Commissioner of Income Tax concerned to the effect that his income during the income year is exempt from tax.” 8 Clause (52) omitted by the Finance Act, 2010. The omitted (clause (52) read as follows: “(52) The provisions of clause (vi) of Notification No. SRO 593(I)/91, dated the 30th June, 1991, shall not apply to any importer being an industrial undertaking engaged in the manufacture of vanaspati ghee or oil.” 9 Clause (53) omitted by the Finance Act, 2005. The omitted clause (53) read as follows: “ (53) The provision of sections 148 and 153 shall not apply to the wheat imported by Trading Corporation of Pakistan in pursuance of Economic Coordination Committee of the Cabinet decision No.ECC-67/5/2005 dated the 2nd July, 2004.” 666 Second Schedule – Part IV____ __________________________ 1[ ] 2[ ] 3[(56) The provisions of section 148, regarding withholding tax on imports shall not apply in respect of— 1 Clause (54) omitted by the Finance Act, 2005. The omitted clause (54) read as follows: “(54) The provisions of section 148 shall not apply to sugar imported in pursuance of Economic Coordination Committee of the Cabinet’s decision No.ECC16/2/2005 dated 08.02.2005.” 2 Clause (55) omitted by the Finance Act, 2005. Earlier this was inserted by S.R.O. 423(I)/2005, dated 13.05.2005. The omitted clause (55) read as follows: “(55) The provision of section 148 shall not apply to the import of the following items, namely:- (a) onions; (b) potatoes; (c) tomatoes; (d) garlic; (e) halal meat of - (1) (i) goat; and (ii) sheep; and (2) beef; and (f) live animals (bovine animals i.e. buffalos, cows, sheep, goats and camels only).” 3 Clause (56) substituted by the Finance Act, 2008. The substituted clause (56) read as follows: “(56) The provisions of section 148, regarding withholding tax on imports, shall not apply in respect of;- (i) goods or classes of goods imported by contractors and sub-contractors engaged in the execution of power project under the agreement between the Islamic Republic of Pakistan and Hub Power Company Limited; (ii) such specially equipped motor vehicle or support equipment imported by a disabled person, as is allowed by the Federal Government; (iii) such goods imported into Pakistan as are exempt from customs duties and sales tax under Headings 9913, 9914 and 9915 of Sub-Chapter III of Chapter 99 of First Schedule the Customs Act, 1969 (IV of 1969); (iv) goods imported by direct and indirect exporters covered under - (a) Sub-Chapter 4 of Chapter XII of S.R.O. 450(I)/2001 dated 18.06.2001; (b) Sub-Chapter 6 of Chapter XII of S.R.O. 450(I)/2001 dated 18.06.2001; and (c) Sub-Chapter 7 of Chapter XII of S.R.O. 450(I)/2001 dated 18.06.2001; (v) goods specified under Heading 9929, Sub-Chapter VIII of Chapter 99 of the First Schedule to the Customs Act, 1969 (IV of 1969); (vi) Liquefied Petroleum Gas (LPG) (vii) Liquefied Natural Gas (LNG) (viii) agricultural tractors imported in CBU condition; (ix) an indirect exporter as defined in the Duty and Tax Remission for Export Rules, 2001 issued under Notification No. S.R.O. 85(I)/2001, dated the 21st March 2001; (x) Radio Navigational Aid Apparatus imported for an airport or on after First January, 2006. (xii) import of the following items, namely:- (a) onions; (b) potatoes; (c) tomatoes; (d) garlic; (e) halal meat of- (1) (i) goat; and (ii) sheep; and (2) beef; and (f) live animals (bovine animals i.e. buffalos, cows, sheep, goats and camels only); 667 Second Schedule – Part IV____ __________________________ (xiv) goods donated for the relief of earthquake victims as are exempt from customs duties and sales tax; and (xv) tents, tarpaulin and blankets. (xvii) import of ships and floating crafts including tugs, dredgers, survey vessels and other specialized crafts, registered in Pakistan. (xviii) goods specified in column (2) of the Table below, falling under the PCT heading number mentioned in column (3) of the said Table, namely: - TABLE S.No. Description of goods. PCT heading number. (1) (2) (3) 1. Camera. 9007.1100 2. Studio lights. 9405.4010 3. Screen. 9010.6000 4. Camera all kind lenses. 9002.1100 5. Stand filers. 9002.2000 6. Lenses video assist. 9002.1900 7. Lights/studio lights. 9405.4010 8. Laboratory for processing. 9010.5000 9. Steam back. 9405.4010 10. Mixing studio facility. 9010.5000 11. Re-mixing and accessories. 9010.5000 12. Jummygib. 9010.5000 13. Negative. 9010.5000 14. Postive. 9010.5000 15. Sound. 9010.5000 16. Magnetic sound/negative. 9010.5000 17. Lighting equipment imported 9405.4010 By M/s Rafi Peer Theatre Workshop. _____________________________________________ (xix) one time import of 32 buses by Daewoo Express Bus Service Ltd. (xx) goods temporarily imported into Pakistan for subsequent exportation and which are exempt from customs duty and sales tax under Notification No. S.R.O. 1065(I)/2005, dated the 20th October, 2005. xxi capital goods imported by a manufacturer whose sales are 100% exports and produces a certificate from the Commissioner of Income Tax to the effect that the imported capital goods shall be (a) installed in his own industrial undertaking; and (b) exclusively used for production of goods to be exported. (xxii) Capital goods and raw material imported by manufacturer exporter registered with Sales Tax Department as a manufacturer. (xxiii) Petroleum (E&P) companies covered under SRO. 678(I)2004 dated 07.08.2004 except motor vehicles imported by such companies. (xxiv) Companies importing high speed diesel oil, light diesel oil, high octane blending component or motor spirit, furnace oil, JP-1, MTBE, kerosene oil, crude oil for refining and chemical use in refining thereof in respect of such goods; (xxv) The re-importation of re-usable containers for re-export qualifying for customs-duty and sales tax exemption on temporary import under the Customs Notification No. S.R.O.344(I)/95 dated the 25th day of April, 1995; and (xxvi) goods donated for relief of flood victims of year 2007 as exempt from customs-duty and sales tax. (xxvii) Plant, machinery, equipment and specific items used in production of bio-diesel as are exempt from customs-duty and sales tax.” 668 Second Schedule – Part IV____ __________________________ (i) goods classified under Pakistan Customs Tariff falling under1[“Chapter 86 and 99 except PCT Heading 9918”]; 2[(ia) Petroleum oils and oils obtained from bituminous minerals crude (PCT Code 2709.0000), Furnace-oil (PCT Code 2710.1941), High speed diesel oil (PCT) Code 2710.1931), Motor spirit (PCT Code 2710.1210), J.P.1 (PCT Code 2710.1912), base oil for lubricating oil (PCT Code 2710.1993), Light diesel oil (PCT Code 2710.1921) and Super Kerosene Oil imported by Pakistan State Oil Company Limited, Shell Pakistan Limited, Attock Petroleum Limited, Byco Petroleum Pakistan Limited, Admore Gas Private Limited, Chevron Pakistan Limited, Total-PARCO Pakistan(Private) Limited, Hascol Petroleum Limited,3[Barki Energy (Private) Limited], Gas and Oil Pakistan (Pvt) Ltd4[or any other oil marketing company licensed by Oil and Gas Regulatory Authority (OGRA)]and oil refineries.] (ii) goods imported by direct and indirect exporters covered under sub- chapter 7 of Chapter XII of SRO 450(I)/2001 dated June 18, 2001; (iii) goods temporarily imported into Pakistan for subsequent exportation and which are exempt from customs duty and sales tax under Notification 5[No.492(I)/2009, dated the 13th June, 2009];6[ ] 7[(iiia) Goods temporarily imported into Pakistan by international athletes which would be subsequently taken back by them within one hundred and twenty days of temporary import;] (iv) Manufacturing Bond as prescribed under Chapter XV of Customs Rules, 2001 notified vide S.R.O. 450(I)/2001, dated June 18, 2001 8[; and] ] 9[(v) mineral oil imported by a manufacturer or formulator of pesticides which is exempt from customs-duties under the customs Notification No. S.R.O. 857(I)/2008, dated the 16th August, 2008.] 10[(vi) the Federal Government; (vii) a Provincial Government; (viii) a Local Government 1The word and figures “Chapters 27, 86 and 99” substituted by the Finance Act, 2015. 2 Inserted by the Finance Act, 2015. 3 The expression “Bakri Trading Company Pakistan (Pvt) Ltd, Overseas Oil Trading Company (Pvt) Ltd” substituted by the Finance Act, 2018. 4 Inserted by the Finance Act, 2017. 5 20th The words, figures, brackets, commas and symbol “No. S.R.O.1065(I)/2005, dated the October, 2005” substituted by the Finance Act, 2012. 6 The word “and” omitted by S.R.O. 860(I)/2008, dated 19.08.2008. 7 Sub-clause (iiia) inserted by the Finance Act, 2021. Earlier this sub-clause was inserted through Tax Laws (Amendment) Ordinance, 2021. 8 Full stop substituted by S.R.O. 860(I)/2008, dated 19.08.2008. 9 Inserted by S.R.O. 860(I)/2008, dated 19.08.2008. 10 30th New clauses (vi) to (xii) added through Finance Act, 2020 dated June, 2020 669 Second Schedule – Part IV____ __________________________ (ix) a foreign company and its associations whose majority share capital is held by a foreign government; (x) a person who imports plant and machinery for execution of a contract with the Federal Government or a provincial government or a local government and produces a certificate from that government; (xi) companies importing high speed diesel oil, light diesel oil, high octane blending component or kerosene oil, crude oil for refining and chemical used in refining thereof in respect of such imports; and (xii) Petroleum (E&P) companies covered under the Customs and Sales Tax Notification No. S.R.O.678(I)/2004, dated the 7th August, 2004, except motor vehicles imported by such companies.] 1[(xiii) Goods produced or manufactured and exported from Pakistan which are subsequently imported in Pakistan within one year of their exportation, provided conditions of section 22 of the Customs Act, 1969 (IV of 1969) are complied with; (xiv) plant and machinery imported for setting up of a bagasse/biomass based cogeneration power project qualifying for exemption under clause (132C) of Part-I of this Schedule.; (xv) persons authorized under Export Facilitation Scheme 2021 notified by the Board with such scope, conditions, limitation, restrictions and specification of goods.; (xvi) motor vehicles upto 1000cc in CBU condition; (xvii) Printed books excluding brochures, leaflets and similar printed matter, whether or not in single sheets.(PCT code 49.01); (xviii) Newspapers, journals and periodicals, whether or not illustrated or containing advertising material (PCT code 49.02); and (xix) blind talking mobile phones imported by blind persons as per rules issued by the Board (respective PCT headings);] 2[(xx) Import of Cystagon, Cysta drops and Trientine capsules] 1 Sub-clause (xiii), (xiv), (xv), (xvi), (xvii), (xviii) and (xix) added by the Finance Act, 2021. 2 Sub-clause (xx) added by the Finance Act, 2025. 670 Second Schedule – Part IV____ __________________________ 1[ 2[ ] ] 3[ 4[ ] ] 5[ ] 6[ ] 7[ ] 8[(56F) The provision of sub-section (2) of section 156A and clause (a) of sub- section (1) of section 169 shall not apply in respect of a person if the person opts to file return of total income along with accounts and documents as may be prescribed, subject to the condition that minimum tax liability under normal tax regime shall not be less than 10% of the commission or discount received.] 1 Inserted by the Finance Act, 2013. 2 Clause (56A) omitted by the Finance Act, 2017. The omitted clause (56A) is read as follows: “(56A) The provisions of sub-section (7) of section 148 and clause (a) of sub-section (1) of section 169 shall not apply to a person who is liable to withholding tax under section 236E.” 3 Added by S.R.O 341(I)/2014, dated 02.05.2014. 4 Expression in clause (56B) omitted by the Finance Act, 2015. The omitted expression read as follows:- “(56B)Provisions of section 148 shall not apply in respect of import of potatoes between 5th of May, 2014 and 31st of July, 2014, provided that such imports shall not exceeds 200,000 metric tons in aggregate during the said period.” 5 Inserted by the Finance Act, 2014 and erroneously numbered (56B) as clause (56B) already existed. 6 Clause (56B) omitted by the Finance Act 2018,the omitted clause (5656B) reads as follows (56B) The provision of sub-section (7) of section 148, and clause (a) of sub-section (1) of section 169 shall not apply to a person being a commercial importer if the person opts to file return of total income along with accounts and documents as may be prescribed, subject to the condition that minimum tax liability under normal tax regime shall not be less than 5.5%, of the imports, if the person is a company and 6% otherwise. 7 30th Clauses (56C),(56D),(56E) omitted through Finance Act, 2020 dated June, 2020 the omitted clauses read as follows: “(56C) The provisions of sub-section (3) of section 153, in respect of sale of goods and clause (a) of sub-section (1) of section 169 shall not apply to a person, if the person opts to file return of total income along with accounts and documents as may be prescribed subject to the condition that minimum tax liability under normal tax regime shall not be less than 3.5% of the gross amount of sales, if the person is a company and 4% otherwise.] [(56D) The provisions of sub-section (3) of section 153, in respect of contracts and clause (a) of sub- section (1) of section 169 shall not apply to a person if the person opts to file return of total income along with accounts and documents as may be prescribed subject to the condition that minimum tax liability under normal tax regime shall not be less than 6% of contract receipts, if the person is a company and 6.5 %otherwise.] [(56E) The provisions of sub-section (2) of section 153 and clause (a) of sub-section (1) of section 169 shall not apply in respect of a person if the person opts to file return of total income along with accounts and documents as may be prescribed subject to the condition that minimum tax liability under normal tax regime shall not be less than 0.5% of gross amount of services received.” 8 Inserted by the Finance Act, 2014. 671 Second Schedule – Part IV____ __________________________ 1[ ] 2[ ] 3[(57) The provisions of 4[ 5[section] 6[ ] ] 7[ ] 8[ ] 153 shall not apply to companies operating Trading Houses which— (i) have paid up capital of exceeding Rs.250 million; (ii) own fixed assets exceeding Rs.300 million at the close of the Tax Year; (iii) maintain computerized records of imports and sales of goods; (iv) maintain a system for issuance of 100% cash receipts on sales; (v) present accounts for tax audit every year; and (vi) is registered 9[under the Sales Tax Act, 1990] Provided that the exemption under this clause shall not be available if any of the aforementioned conditions are not fulfilled for a tax year 10[ 11[:] ] 1Clause (56G) omitted though Finance Act, 2020 dated 30th June, 2020 the omitted clause read as follows: “(56G) The provisions of sub-section (3) of section 233 and clause (a) of sub-section (1) of section 169 shall not apply in respect of a person if the person opts to file return of total income along with accounts and documents as may be prescribed, subject to the condition that minimum tax liability under normal tax regime shall not be less than 10% of the commission.” 2 Clause (56H) omitted by the Finance Act, 2015. The omitted clause (56H) read as follows:- “(56H) Provisions of section 148 shall not apply in respect of import of potatoes between 5th of May, 2014 and 15th of November, 2014, provided that such import shall not exceed 300,000 metric tons in aggregate during the said period.” 3 Added by the Finance Act, 2005. 4 The word “section” substituted by S.R.O. 439(I)/2013, dated 20.05.2013. 5 The expression “sections 113 and” substituted by the Finance Act, 2016. 6 Inserted by S.R.O. 439(I)/2013, dated 20.05.2013. 7 The figure “113” omitted by S.R.O. 140(I)/2013 dated 26.02.2013. 8 The figure “148” omitted by S.R.O. 140(I)/2013 dated 26.02.2013. 9 The words “with sales tax department” substituted by the Finance Act, 2014 10 The colon substituted by the Finance Act, 2008. 11 Full stop substituted by Finance Act, 2009. 672 Second Schedule – Part IV____ __________________________ 1[2[“Provided further that minimum tax under section 113 shall be 0.5% upto the tax year 3[2021] and one per cent thereafter.”] ] 4[Explanation.-5[(i)]For the removal of doubt, exemption under this clause, in respect of section 153, shall only be available as a recipient and not as withholding agent.] 6[“(ii) It is further clarified that in-house preparation and processing of food and allied items for sale to customers shall not disqualify a company from being treated as a Trading House, provided that all the conditions in this clause are fulfilled and sale of such items does not exceed two per cent of the total sales.”] 7[ ] 8[ ] 9[ ] 10[ ] 11[(59) The provisions of section 151, regarding withholding tax on profit on debt, shall not apply— 1 Added by S.R.O. 439(I)2013, dated 20.05.2013. Earlier second proviso was omitted vide S.R.O. 140(I)/2013 dated 26.02.2013. The omitted proviso read as follows: “Provided further that the exemption from application of section 113 shall be available for the first ten years, starting from the tax year in which the business operations commenced.” 2 Second proviso substituted by the Finance Act, 2016. Substituted second proviso read as follows:- “Provided further that the exemption from application of section 113 shall be available for the first ten years, starting from the tax year in which the business operations commenced.” 3 The figure “2019” substituted by the Finance Act, 2018. 4 Added by the Finance Act, 2014. 5 Numbered by the Finance Act, 2015. 6 Added by the Finance Act, 2015. 7 Proviso omitted by the Finance Act, 2008. The omitted proviso read as follows” “Provided further that the exemption from application of section 113 shall be available for the first ten years, starting from the tax year in which the business operations concerned.” 8 Inserted by the Finance Act, 2007. 9 Clause (57A) omitted by the Finance Act, 2021. The omitted clause read as follows: “(57A) The provisions of sections 153 and 169 shall not apply to large import houses: Provided that the exemption under this clause shall not be available if any of the conditions provided in section 148 are not fulfilled for a tax year.]” 10 Clause (58) omitted by the Finance Act, 2008. The omitted clause (58) read as follows: “(58) The provisions of section 205 shall not apply to telecom companies for default of not collecting withholding tax under section 236 (1)(b) on sale of prepaid cards during tax year 2004, if the amount not collected is deposited within three months: Provided that nothing contained in this clause shall apply to the amounts collected under section 236(1)(b), but not deposited in the Treasury.” 11 Added by the Finance Act, 2005. 673 Second Schedule – Part IV____ __________________________ 1[ ] (ii) to any payment made by way profit or interest to any person on Term Finance Certificates being the instruments of redeemable capital under the 2[Companies Act, 2017 (XIX of 2017)], issued by Prime Minister’s Housing Development Company (Pvt) Limited (PHDCL); 3[ ] (iv) in the case of any resident individual, no tax shall be deducted from income or profits paid on,- 4[ ] (b) Investment in monthly income Savings Accounts Scheme of Directorate of National Savings, where monthly installment in an account does not exceed one thousand rupees.] 5[(60) The provisions of sections 148 and 153 shall not apply to fully as well partly designed/assembled cypher devices, for use within the country as are verified by 6[Cabinet Division (NTISB)] with reference to design, quality and quantity.] 7[(60A) The provisions of section 148 shall not apply for import of plant, machinery and equipment including dumpers and special purposes motor vehicles imported by the following for construction of Sukkur-Multan section of Karachi-Peshawar Motorway project and Karakorum Highway(KKH) Phase-II (Thakot to Havellian Section) of CPEC project respectively, namely:- (a) M/s China State Construction Engineering Corporation Ltd. (M/s CSCEC); and (b) M/s China Communication Construction Company (M/s CCCC). 1 Sub-clause (i) omitted by the Finance Act, 2016. Omitted sub-clause read as follows:- “(i) in respect of profit or interest paid on a Term Finance Certificate held by a company which has been issued on, or after, the first day of July, 1999” 2 The expression “Companies Ordinance, 1984 (XLVII of 1984)” substituted by the Finance Act, 2021. 3 Sub-clause (iii) omitted by the Finance Act, 2015. The omitted sub-clause (iii) reads as follows:- “(iii) to Pak rupee accounts or certificates referred to in clause (83) of Part-I of this Schedule; and” 4 Paragraph (a) omitted by the Finance Act, 2013. The omitted paragraph (a) read as follows: “(a) Defence Savings Certificates, Special Savings Certificates, Savings Accounts or Post Office Savings Accounts, or Term Finance Certificates (TFCs), where such deposit does not exceed one hundred and fifty thousand rupees; and” 5 Inserted by S.R.O. 85(I)/2006, dated 03.02.2006. 6 The letters “NTISB” substituted by the Finance Act, 2006. 7 Inserted by the Finance Act, 2018. 674 Second Schedule – Part IV____ __________________________ (60AA) The provisions of section 148 of the Income Tax Ordinance, 2001(XLIX of 2001), shall not apply for import of construction materials or goods upto a maximum of 10,898.000 million rupees imported by China State Construction Engineering Corporation (M/s CSCEC) for construction of Sukkur-Multan section of Karachi- Peshawar Motorway project of National Highway Authority under CPEC. (60B) The provisions of section 148 shall not apply on import of thirty-five armoured and security vehicles imported by or for Ministry of Foreign Affairs, Government of Pakistan meant for security of visiting foreign dignitaries, subject to the following conditions, namely:- (a) that the vehicles imported under this clause shall only be used for the security purpose of foreign dignitaries and will be parked in Central Pool of Cars (CPC) in the Cabinet Division for further use as and when needed; and (b) that the importing Ministry at the time of import shall furnish an undertaking to the concerned Collector of Customs to the extent of customs-dues exempted under this clause on consignment to consignment basis binding themselves that the vehicles imported under this clause shall not be re-exported, sold or otherwise disposed of without prior approval of the Board and in the manner prescribed therefor. (60C) The provision of section 148 shall not apply on import of equipment to be furnished or installed for Rail Based Mass Transit Projects in Lahore, Karachi, Peshawar and Quetta under CPEC.] 1[(60D) The provisions of section 148 shall not apply on import of fire fighting equipments by industrial undertakings set up in the special economic zones established by the Federal Government.] 2[ ] 3[(60DA) The provisions of section 148 shall not apply to the import of the capital equipment as defined in Special Technology Zones Authority Act, 2021 (XVII of 2021). 1 New clause (60D) added through Finance Supplementary (Second Amendment) Act, 2019 2 Clause (60DA) inserted by the Finance Act, 2021. 3 Clause (60DA) substituted by the Finance Act, 2022. The substituted clause read as follows: “(60DA) The provisions of section 148 shall not apply to the import of the capital equipment as defined in section 2 of the Special Technology Zones Ordinance 2020 (XIII of 2020) by— (a) zone developers as defined in section 2 of the Special Technology Zones Ordinance 2020 for consumption in the special technology zones for the period of 10 years commencing from the date of signing the development agreement; (b) zone enterprises as defined in section 2 of the Special Technology Zones Authority Ordinance, 2020 for a period of ten years from the date of issuance of license by the Special Technology Zone Authority; and 675 Second Schedule – Part IV____ __________________________ (a) Zone developers as defined in Special Technology Zones Authority Act, 2021 (XVII of 2021) for consumption in the special technology zones for the period of ten years commencing from the date of signing the development agreement; (b) Zone enterprises as defined in Special Technology Zones Authority Act, 2021 (XVII of 2021) for a period of ten years from the date of issuance of license by the Special Technology Zone Authority; and (c) Special Technology Zones Authority established under Special Technology Zones Authority Act, 2021 (XVII of 2021).] 1[(60E) The provisions of section 148 shall not apply on mobile phones brought in personal baggage under Baggage Rules, 2006.] 2[ ] 3[ ] 4[ ] 5[(62) The following provisions of Section 97 shall not apply in case of transfer of assets on amalgamation of companies or their businesses or acquisition of shares, requiring that transferor: (a) be resident company; and (b) belong to a wholly-owned group of resident companies. Provided that: (c) Special Technology Zones Authority established under the Special Technology Zones Ordinance 2020.]” 1 New clause (60E) added through Finance Act, 2019. 2 Added by S.R.O. 273(I)/2006, dated 21.03.2006. 3 Clause (61) omitted by the Finance Act, 2021. The omitted clause read as follows: “(61) The provisions of section 231A shall not apply in respect of any cash withdrawal, from a bank, made by an earthquake victim against compensation received from GOP including payments through Earthquake Reconstruction and Rehabilitation Authority (ERRA) account.” 4 Clause (61A) omitted by the Finance Act, 2015. The omitted clause (61A) read as follows:- “(61A) The provisions of section 231A shall not apply in respect of any cash withdrawal by exchange companies duly licensed and authorized by the State Bank of Pakistan on their bank account exclusively dedicated for their authorized business related transaction: Provided that.— (a) exemption under this clause shall be available to exchange companies who are issued exemption certificate by the concerned Commissioner Inland Revenue for a financial year; and (b) the Commissioner shall issue the exemption certificate after obtaining relevant details and particulars of the Bank Accounts.” 5 Inserted by S.R.O. 885(I)/2006, dated 29.08.2006. 676 Second Schedule – Part IV____ __________________________ (i) the transferee resident company shall own or acquire atleast 75% of the share capital of the transferor company or the business in Pakistan of the transferor company; (ii) the amalgamated company is a company incorporated in Pakistan; (iii) the assets of the amalgamating company or companies immediately before the amalgamation become the assets of the amalgamated company by virtue of the amalgamation, otherwise than by purchase of such assets by the amalgamated company or as a result of distribution of such assets to the amalgamated company after the winding up of the amalgamating company or companies; (iv) the liabilities of the amalgamating company or companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation; and (v) the scheme of amalgamation is sanctioned by the State Bank of Pakistan, any court or authority as may be required under the law.] 1[ ] ] 2[ ] 3[(65) Any income derived by a project, approved by Designated National Authority (DNA), from the transfer or sale of Clean Development Mechanism Credits i.e. Certified Emission Reductions, verified Emission Reductions.] 4[ ] 1 30th Clause (63) omitted though Finance Act, 2020 dated June, 2020 the omitted clause read as follows: “(63) M/s Dawat-e-Hadiya, Karachi 1[and Lahore University of Management Sciences, Lahore] shall be deemed to have been approved by the Commissioner for the purpose of sub-section (36) of section 2 notwithstanding the provisions of clause (c) of sub-section (36) of section 2.” 2 Clause (64) omitted by the Finance Act, 2009. The omitted clause (64) read as follows: “(64)No tax shall be collected under section 231B during the period commencing from the 21st February, 2008 and ending on the 20th April, 2008 and shall apply to booking of a motor car and delivered during the said period. 3 Added by the Finance Act, 2008. 4 Added by the Finance Act, 2008. 677 Second Schedule – Part IV____ __________________________ 1[(66) The provisions of section 235 shall not be applicable to the taxpayers 2[ ] registered with sales tax as exporters or manufacturer of — (a) carpets; (b) leather and articles thereof including artificial leather footwear; (c) surgical goods; (d) sports goods; and (e) textile and articles thereof.] 3[(67) The provisions of sections 150, 151, 152, 153 and 233 shall not apply in respect of payments made to the International Finance Corporation established under the International Finance Corporation Act, 1956 (XXVII of 1956).] 4[(67A) The provisions of section 100B and Eighth Schedule shall not apply to transactions carried on upto 30th day of June, 2015, on any Stock Exchange of Pakistan, by International Finance Corporation established under the International Finance Corporation Act, 1956 (XXVIII of 1956).] 5[(68) The provisions of sections 151, 153 and 155 shall not apply in respect of payments made to the Pakistan Domestic Sukuk Company Ltd.] 6[(69) The provisions of sections 150, 151, 152, 153 and 233 shall not apply in respect of payments made to the Asian Development Bank established under the Asian Development Bank Ordinance, 1971 (IX of 1971).] 7[(70) The provisions of section 148, regarding withholding tax on imports, shall not apply in respect of goods or classes of goods for the execution of contract, 1 Clause (66) substituted through S.R.O. 1055(I)/2008 dated 10th October 2008. Substituted clause read as follows:- “(66) The provisions of section 235, shall not be applicable to the exporters-cum-manufacturers of — (a) carpets; (b) leather and articles thereof including artificial leather footwear; (c) surgical goods; (d) sports goods; and (e) textile and articles thereof.] 2 Words “who fall under the zero rated regime of sales tax and” omitted through Tax Laws(Second Amendment) 2019 dated 26th December, 2019 3 Added by S.R.O. 767(I)/2008, dated 21.07.2008. 4 Added by the Finance Act, 2015. 5 Added by S.R.O. 772(I)/2008, dated 22.07.2008. 6 Added by S.R.O. 1012(I)/2008, dated 23.09.2008. 7 Added by S.R.O. 129(I)/2009, dated 07.02.2009. 678 Second Schedule – Part IV____ __________________________ imported by contractors and sub-contractors engaged in the execution of power project under the agreement between the Islamic Republic of Pakistan and HUB Power Company Limited.] 1[(71) The provisions of this Ordinance shall not be applicable to the M/s TAISEI Corporation under the agreement between National Highway Authority, GOP, which falls under the zero rated regime of sales tax and registered with sales tax in respect of supply of products, services and equipment.] 2[(72) The provisions of sections 150, 151, 152, 153 and 233 shall not apply in respect of payments made to The ECO Trade and Development Bank.] 3[ ] 4[ ] 5[(72AA) The provisions of section 152 shall not apply in case of a Hajj Group Operator in respect of Hajj operations.] 6[ ] 1 Inserted vide S.R.O. 712(I)/2009, dated 05.08.2009. 2 Added by S.R.O. 810(I)/2009, dated 19.09.2009. 3 Inserted by the Finance Act, 2013. 4 Clause (72A) omitted by the Finance Act, 2021. The omitted clause read as follows: “(72A) The provisions of clause (l) and section 21, sections 113 and 152 shall not apply in case of a Hajj Group Operator in respect of Hajj operations provided that the tax has been paid at the rate of Rs.3,500 per Hajji for the tax year 2013 and Rs.5,000 per Hajji for the tax year 20144[4[to 4[2017] ] in respect of income from Hajj operations.]” 5 30th Clause (72AA) inserted though Finance Act, 2020 dated June, 2020. 6 30th Clause (72B) omitted though Finance Act, 2020 dated June, 2020 the omitted clause read as follows: “(72B) The provisions of section 148 shall not apply to an industrial undertaking if the tax liability for the current tax year, on the basis of determined tax liability for any of the preceding two tax years, whichever is the higher, has been paid 6[in the manner as may be prescribed] and a certificate to this effect is issued by the concerned Commissioner.] Provided that the certificate shall only be issued by the Commissioner if an application for the said certificate is filed before the Commissioner, in the manner and after fulfilling the conditions as specified by notification in the official Gazette, issued by the Board for the purpose of this clause6[:] ] 6[Provided further that the Commissioner shall be deemed to have issued the exemption certificate in cases where the certificate is automatically processed and issued by IRIS upon expiry of prescribed time period: “Provided also that the Commissioner may modify or cancel the certificate issued automatically by IRIS on the basis of reasons to be recorded in writing after providing an opportunity of being heard.] 6[“Provided further that the quantity of raw material to be imported which is sought to be exempted from tax under section 148 shall not exceed 6[125] per cent of the quantity of raw material imported and consumed during the previous tax year: Provided also that the Commissioner shall conduct audit of taxpayer’s accounts during the financial year in which the certificate is issued in respect of consumption, production and sales of the latest tax year for which return has been filed and the taxpayer shall be treated to have been selected for audit under section 214C: 679 Second Schedule – Part IV____ __________________________ 1[(73) To mitigate part of the cost of obtaining foreign support to fill productivity gap, income tax payable by a foreign expert shall be exempted provided that such expert is acquired with the prior approval of the Ministry of Textile Industry.] 2[(74) The provisions of sub-section (8) of section 22 shall not apply to Civil Aviation Authority (CAA) in respect of the asset transferred for the purpose of the ijara agreement between Pakistan Domestic Sukuk Company Limited and the Federal Government.] 3[(75) The provisions of sub-section (15) of section 22 shall not apply to Civil Aviation Authority (CAA) on the assets acquired from the Federal Government which were previously transferred for the purpose of the ijara agreement between Pakistan Domestic Sukuk Company Limited and the Federal Government: Provided that depreciation shall be allowed at the written down value of the assets immediately before their transfer for the purpose of above mentioned Ijara agreement.] 4[ ] 5[(77) Provisions of sections 148 and 153 shall not be applicable on import and subsequent supply of items with dedicated use of renewable sources of energy like solar and wind etc., even if locally manufactured, which include induction lamps, SMD, LEDs with or without ballast with fittings and fixtures, wind turbines including alternator and mast, solar torches, 6[tubular day lighting devices such assolatube,] lanterns and related instruments, PV modules 7[with or without] the related components including invertors, charge controllers and batteries.] 8[(78) 9[Coal Mining and Coal based Power Generation Projects in Sindh],— Provided also if the taxpayer fails to present accounts or documents to the Commissioner or the officer authorized by the Commissioner, the Commissioner shall, by an order in writing, cancel the certificate issued and shall proceed to recover the tax not collected under section 148 for the period prior to such cancellation and all the provisions of the Ordinance shall apply accordingly 6[:] 6[Provided also that exemption certificate shall not be issued to an industrial undertaking importing raw materials, specified in sub-section (8) of section 148.” 1 Added by the Finance Act, 2010. 2 Added by the Finance Act, 2010. 3 Added by the Finance Act, 2010. 4 Clause (76) omitted by the Finance Act, 2012. The omitted clause (76) read as follows: “(76) The provisions of section 148 shall not apply on import of solar PV panels / modules, along with related components including investors, charge controllers and batteries, LVD induction lamps, SMD LEDs with or without ballast with fittings and fixtures, fully assembled wind turbines including alternator and mast, solar torches, lanterns and related instruments.” 5 Added by S.R.O. 263(I)/2011, dated 19.03.2011. 6 Added by the Finance Act, 2015. 7 The word “along with” substituted by the Finance Act, 2012. 8 Added by S.R.O. 317(I)/2011, dated 19.04.2011. 9 The words “With respect to a project situated in the Special Economic Zone at Thar coalfield” substituted by S.R.O. 609(I)/2011, dated 13.06.2011. 680 Second Schedule – Part IV____ __________________________ (i) the dividend income of the shareholders of such a project shall be exempt from provisions of section 150 from the date of commencement of business till 30 years from such date; and (ii) the payments made on account of sale or supply of goods or providing or rendering of services during project construction and operations, shall be exempt from the provisions of section 1[152(2A) and section] 153.] 2[ ] 3[(79A) The provisions of clause (b) of sub-section (1) of section 153 shall not apply to payments received by National Telecommunication Corporation against provision of telecommunication services including ancillary services specified in subsection (3) of section 41 of the Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996).] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 9[ ] 1 The words “152(2A) and section” inserted by S.R.O. 235(I)/2015, dated 18.03.2015. 2 Clause (79) omitted by the Finance Act, 2015. The omitted clause (79) read as follows:- “[(79) The provisions of clause (b) of proviso to sub-section (3) of section 153 shall not be applicable to the tax withheld on payments received by a company for providing or rendering of services.] 3 Clause (79A) inserted by the Finance Act, 2021. Earlier this clause was inserted through Tax Laws (Amendment) Ordinance, 2021. 4 Clause (80) omitted by the Finance Act, 2014. The omitted clause read as follows: “(80) The provisions of section 153A, shall not apply to any manufacturer till 30th June, 2013.” 5 Clause (81) omitted by the Finance Act, 2019, omitted clause read as follows: “(81) The provisions of clause (a) of section 165, shall not apply to any manufacturer, distributor, dealer and wholesaler required to collect advance tax under sub section (1) of section 236H”. 6 Clause (81A) omitted by the Finance Act, 2019, omitted clause read as follows: “(81A) The provisions of clause (a) of sub-section (1) of section 165 shall not apply to banking companies for furnishing information of taxes collected and deducted under sections 231A and 151.” 7 Clause (82) added by S.R.O. 978(I)/2013, dated 13.11.2013. 8 Clause (82) omitted by the Finance Act, 2016. Omitted clause read as follows:- “(82) The provisions of sub-section (2) of section 116 shall not apply for the tax year 8[2014] to an individual or a member of an association of persons whose last declared or assessed income, or the declared income for the year is less than one million rupees. 9 Clause (83) omitted by the Finance Act, 2015. The omitted clause (83) read as follows:- “(83) The provision of sub-section (4) of section 116 shall not apply for the tax year 2013 to a person other than a company or a member of an association of person falling under final tax regime (FTR) and has paid tax less than thirty five thousand rupees.” 681 Second Schedule – Part IV____ __________________________ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 1 Clause (84) omitted by the Finance Act, 2014. The omitted clause (84) was added by S.R.O. 1040(I)/2013, dated 05.12.2013 and read as follows: “(84) For tax year 2013, the provisions of section 177 and section 214C shall not apply to a taxpayer, if the tax paid on the basis of taxable income declared by the taxpayer for the tax year 2013 is at least twenty five percent more than the tax assessed or paid, whichever is higher, for the tax year 2012.: Provided that the taxpayer files separate proforma for the said exemption with return, in the manner specified in the circular issued by the Board.] 2 Clause (85) omitted by the Finance Act, 2014. The omitted clause read as follows: “(85) The provisions of section 114(6)(ba) shall not apply to persons availing the benefit as provided in clause (84) who revise their returns before the due date of filing of return, for tax year 2013.” 3 Inserted by SRO 1065(I)/2013, dated 20.12.2013 4 Clause (86)(a) substituted by the Finance Act, 2018. The substituted Clause (86)(a) read as follows: (86)(a) The provisions of section 111 shall not apply to- (i) investment made by an individual in a Greenfield industrial undertaking directly or as an original allottee in the purchase of shares of a company establishing an industrial undertaking or capital contribution in an association of persons establishing an industrial undertaking; (ii) investment made by an association of persons in an industrial undertaking; and (iii) investment made by a company in an industrial undertaking; If the said investment is made on or after the 1st day of January, 2014, and commercial production commences on or before the 30th day of June, [ [2019] ]. (b) The concessions given in this clause shall also apply to investment made in:- (i) Construction industry in corporate sector. (ii) Low cost housing construction in the corporate sector. (iii) Livestock development projects in the corporate sector. (iv) New captive power plants. (v) Mining and quarrying in Thar coal, Balochistan and Khyber Pakhtunkhawa. (c) The concessions given in sub-clause (a) shall not apply to investment made in:- (i) Arms and ammunitions (ii) Explosives (iii) Fertilizers (i) Sugar (ii) Cigarettes (vi) Aerated beverages (vii) Cement (viii) Textile spinning units (ix) Flour mills (x) Vegetable ghee and (xi) Cooking oil manufacturing (d) The term Green filed industrial undertaking shall include expansion projects for the purposes of this clause. (e) Immunity under this clause shall not be available to proceeds of crime relating to offences under the following laws: (a) Control of Narcotics Substances Act, 1997; (ii) Anti Terrorism Act, 1997; and (iii) Anti-Money Laundering Act, 2010]. 5 Clause (86) omitted by the Finance Act, 2022. The omitted clause read as follows: “(86)(a) The provisions of section 111 shall not apply to- 682 Second Schedule – Part IV____ __________________________ 1[ ] (i) investment made by an individual in a green field industrial undertaking directly or as an original allottee in the purchase of shares of a company establishing an industrial undertaking or capital contribution in an association of persons establishing an industrial undertaking; (ii) investment made by an association of persons in an industrial undertaking; and (iii) investment made by a company in an industrial undertaking— if the said investment is made on or after the 1st day of January, 2014 and commercial production commences on or before the 30th day of June, 2019; (b) The concessions given in this clause shall also apply to investment made in – (i) construction industry in corporate sector; (ii) low cost housing construction in the corporate sector; (iii) livestock development projects in the corporate sector; (iv) new captive power plants; and (v) mining and quarrying in Thar coal, Balochistan and Khyber Pakhtunkhawa; (c) The concessions given in sub-clause (a) shall not apply to investment made in- (i) arms and ammunitions; (ii) explosives; (iii) fertilizers; (iv) sugar; (v) cigarettes; (vi) aerated beverages; (vii) cement; (viii) textile spinning units; (ix) flour mills; (x) vegetable ghee; and (xi) cooking oil manufacturing; (d) The term green field industrial undertaking shall include expansion projects for the purposes of this clause; and (e) Immunity under this clause shall not be available to proceeds of crime relating to offences under the following laws, namely:- (i) Control of Narcotics Substances Act, 1997; (ii) Anti Terrorism Act, 1997; and (iii) Anti-Money Laundering Act, 2010.” 1 Clause (87) omitted by the Finance Act, 2014. The omitted clause read as follows: “(87) The provisions of sections 182, 205, 177 and 214C shall not apply to an individual, holding an NTN who files a return, as specified in Form “A” below, by twenty eight day of February, 2014, of the tax years from 2008 to 2012, for which returns have not been field: Provided that for each of the tax year, a minimum tax of twenty thousand rupees on the basis of taxable income is paid by the taxpayer: Provided further that the taxpayer shall not be entitled to claim any adjustment of withholding tax collected or deducted under the Ordinance: Provided also that the due date of filing of return for tax year 2013, in respect of individuals availing concessions under this clause shall be twenty eighth day of February, 2014. 683 Second Schedule – Part IV____ __________________________ 1[ ] 1 Clause (88) omitted by the Finance Act, 2014. The omitted clause read as follows: “(88) The provisions of sections 182, 205, 177 and 214C shall not apply to an individual, if the individual files a return or returns, as prescribed for this clause, by twenty eighth day of February, 2014 for any or all of the tax years from 2008 to 2012; and (i) has not filed any return for the last five years; (ii) is not an NTN holder as on 28th day of November, 2013; (iii) declares taxable income for the year which exceeds the amount on the basis of which, tax payable is twenty five thousand rupees or more; and (iv) has paid the tax on the basis of taxable income declared in the return or returns: Provided that concession under this clause shall only apply for the tax year or years, for which the returns have been filed and for equal number of succeeding consecutive tax year, if tax paid for the succeeding tax year is at least equal to tax paid for tax year 2012: Provided further that the taxpayers shall not be entitled to claim any adjustment of withholding tax under the Ordinance, collected or deducted during a tax year, for which a return is filed: Provided also that the due date of filing of return for tax year 2013, in respect of individuals availing concessions under this clause shall be twenty eighth day of February, 2014.] 684 Second Schedule – Part IV____ __________________________ 1[ ] 2[ ] 3[4[ ] ] 5[(91) The provisions of section 148 shall not apply to- (i) Tillage and seed bed preparation equipment as specified below Equipment PCT Code (i) Rotavator 8432.8010 (ii) Cultivator 8432.2910 (iii) Ridger 8432.8090 (iv) Sub soiler 6[8432.3900] (v) Rotary slasher 8432.8090 (vi) Chisel plow 8432.1010 (vii) Ditcher 8432.1090 (viii) Border disc 8432.2990 1 Clause (89) omitted by the Finance Act, 2015. The omitted clause (89) read as follows:- “(89) The Provisions of section 236I shall not apply to- (a) the Federal Government or a Provincial Government; (b) an individual entitled to privileges under the United Nations (Privileges and Immunities) Act, 1948 (XX of 1948); (c) a foreign diplomat or a diplomatic mission in Pakistan; or (d) a person who is a non-resident and- (i) furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days; (ii) furnishes a certificate that he has no Pakistan-source income; and (iii) fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.” 2 Clause (90) omitted by the Finance Act, 2015. The omitted clause (90) read as follows:- “(90) The provisions of section 236D shall not apply to- (a) the Federal Government or a Provincial Government; (b) an individual entitled to privileges under the United Nations (Privileges and Immunities) Act, 1948(XX of 1948); or (c) a foreign diplomat or diplomatic mission in Pakistan.” 3 Inserted by S.R.O. 1029(I)/2014 date 19.11.2014. 4 Clause (91) substituted by the Finance Act, 2016. Substituted clause read as follows:- “(91) the provisions of sections 147, 151, 152, 231A, 231AA, 236A and 236K shall not apply to “The Second Pakistan International Sukuk Company Limited”, as a payer.” 5 2015. Clause (91) added by the Finance Act, 6 The figure “8432.3090” substituted by the Finance Act, 2017. 685 Second Schedule – Part IV____ __________________________ (ix) Disc harrow 8432.2100 (x) Bar harrow 8432.2990 (xi) Mould board plow 8432.1090 (xii) Tractor rear or front blade 8430.6900 Land leveller or land planer 8430.6900 (xiv) Rotary tiller 8432.8090 (xv) Disc plow 8432.1090 (xvi) Soil-scrapper 8432.8090 (xvii) K.R.Karundi 8432.8090 (xviii) Tractor mounted trancher 1[8701.9200] (xix) Land leveler 8430.6900 (ii) Seeding or planting equipment Equipment PCT Code (i) Seed-cum-fertilizer 2[8432.3100] drill (wheat, rice barley, etc.) (ii) Cotton or maize 3[8432.3900] planter withfertilizer attachment (iii) Potato planter 4[8432.3900] (iv) Fertilizer or 5[8432.4100] manure spreader or broadcaster (v) Rice transplanter 6[8432.3900] (vi) Canola or 7[8432.3100] sunflower drill 1 The figure “8701.9020” substituted by finance act 2017. 2 The figure “8432.3010” substituted by finance act 2017. 3 The figure “8432.3090” substituted by finance act 2017. 4 The figure “8432.3090” substituted by finance act 2017. 5 The figure “8432.4000” substituted by finance act 2017. 6 The figure “8432.3090” substituted by finance act 2017. 7 The figure “8432.3010” substituted by finance act 2017. 686 Second Schedule – Part IV____ __________________________ (vii) Sugarcane planter 1[8432.3900] (iii) Irrigation, drainage and agro-chemical application equipment Equipment PCT Code (i) Tubewells filters or 8421.2100, Strainers 8421.9990 (ii) Knapsack sprayers 8424.2010 (iii) Granular applicator 8424.2010 (iv) Boom or field sprayers 8424.2010 (v) Self propelled sprayers 8424.2010 (vi) Orchard sprayer 8424.2010 (iv) Harvesting, threshing and storage equipment Equipment PCT Code (i) Wheat thresher 8433.5200 (ii) Maize or groundnut 8433.5200 thresheror sheller (iii) Groundnut digger 8433.5900 (iv) Potato digger or harvester 8433.5300 (iv) Sunflower thresher 8433.5200 (v) Post hole digger 8433.5900 (vi) Straw balers 8433.4000 (vii) Fodder rake 8433.5900 (viii) Wheat or rice reaper 8433.5900 (ix) Chaff or fodder cutter 8433.5900 (x) Cotton picker 8433.5900 (xi) Onion or garlic harvester 8433.5200 (xii) Sugar harvester 8433.5200 (xiii) Tractor trolley or forage wagon8716.8090 (xiv) Reaping machines 8433.5900 (xv) Combined harvesters 8433.5100 (xvi) Pruner/shears 8433.5900 2[(xvii) Corn harvester/corn picker and silage maker with their respective PCT heading] (v) Post-harvest handling and processing & miscellaneous machinery 1 The figure “8432.3090” substituted by Finance Act 2017. 2 Sub-paragraph (xvii) added by the Finance Act 2021. 687 Second Schedule – Part IV____ __________________________ Equipment PCT Code (i) Vegetables and fruits 8437.1000 Cleaning and sorting or grading equipment (ii) Fodder and feed cube 8433.4000 Maker equipment”] 1[2[ ] ] 3[(92) The provisions of section 148 shall not apply to.— PCT Code Aircraft, whether imported or 8802.4000 acquired on wet or dry lease Maintenance kits for use in Respective trainer aircrafts of PCT headings headings 8802.2000 and 8802.3000 Spare parts for use in Respective aircrafts, trainer aircrafts or headings simulators Machinery, equipment and Respective tools for setting up headings maintenance, repair and overhaul (MRO) workshop by MRO company recognized by Aviation Division Operational tools, machinery, Respective equipment and furniture and headings fixtures on one-time basis for setting up Greenfield airports by a company authorized by Aviation Division 1 Inserted by S.R.O. 1029(I)/2014 date 19.11.2014 2 Clause (92) substituted by the Finance Act, 2016 substituted clause read as follows:- . “(92) the provisions of sections 147, 151 and 155 shall not apply to “The Second Pakistan International Sukuk Company Limited”, as a recipient. 3 2015. Clause (92) added by the Finance Act, 688 Second Schedule – Part IV____ __________________________ Aviation simulators imported Respective by airline company headings recognized by Aviation Division”] 1[2[ ]] 3[(93) The provisions of sub-section (1) of section 154 shall not apply to taxpayers operating halal meat production and qualifying for exemption under clause(126K) of Part-I of this Schedule for the period specified in clause (126K).”] 4[ ] 5[ ] 6[ ] 7[(95) The provisions of sections 147, 151, 152, 236A and 236K shall not apply to the Second Pakistan International Sukuk Company Limited, the Third Pakistan International Sukuk Company Limited and The Pakistan Global Sukuk Programme Company Limited, as a payer.] 1 Inserted by S.R.O. 1029(I)/2014 date 19.11.2014 2 Clause (93) substituted by the Finance Act, 2016 substituted clause read as follows:- “(93) the provision of section 236C shall not apply to “Pakistan International Sukuk Company Limited”.] 3 2015. Clause (93) added by the Finance Act, 4 Clause (94) omitted through Finance Act, 2019, omitted clause read as follows: "(94) The provisions of clause (b) of the proviso to sub-section (3) of section 153 shall not apply for 4[“the period beginning on the first day of July, 2015 and ending on the thirtieth day of June, 4[ 4[ ] 4[2019] ] to a company being a filer and engaged in providing or rendering freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services, software development services,4[“IT services and IT enabled services as defined in clause (133) of Part I of this Schedule”] tracking services, advertising services (other than by print or electronic media), share registrar services, engineering services 4[,] car rental services 4[, building maintenance services, services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited 4[inspection, certification, testing and training services]]: Provided that the tax payable or paid on the income from providing or rendering aforesaid services shall not be less than two percent of the gross amount of turnover from all sources and that the company furnishes in writing an irrevocable undertaking by the fifteenth day of November, 2015 to present its accounts to the Commissioner within thirty days of filing of return, for audit of its income tax affairs for 4[ 4[any of the tax years 2016 to 4[2019] ] 4[:] ”] 4[“Provided further that for tax year 4[ ] 4[2019], the company shall furnish irrevocable undertaking by November, 4[ ] 4[2018], to present its accounts to the Commissioner.” 5 Substituted by the Finance Act, 2016. 6Clause (95) substituted by the Finance Act 2018, the substituted clause (95) reads as follows “(95) the provisions of sections 147, 150A , 151, 152, 231A, 231AA, 236A and 236K shall not apply to “The Second Pakistan International Sukuk Company Limited”[“and the Third Pakistan International Sukuk Company Limited”, as a payer.” 7 Clause (95) substituted by the Finance Act, 2022. Earlier this clause was inserted through S.R.O 1457(I)/2021 dated 11.11.2021. Substituted clause read as follows: “(95) the provisions of sections 147, 150A, 151, 152, 7[ ] 236A and 236K shall not apply to “The second Pakistan international Sukuk Company Limited” and the Third Pakistan International Sukuk Company Limited, as a payer.” 689 Second Schedule – Part IV____ __________________________ 1[(95A) The provisions of section 236A shall not apply in respect of auction of franchise rights to participating teams in a national or international league organized by any board or other organization established by the Government in Pakistan for the purposes of controlling, regulating or encouraging major games and sports recognized by the Government with effect from the first day of July; 2019.] 2[ ] 3[ ] 4[(96) The provisions of sections 151, 153, 155 and 236C shall not apply to the Second Pakistan International Sukuk Company Limited, the Third Pakistan International Sukuk Company Limited and the Pakistan Global Sukuk Programme Company Limited, as a recipient;] 5[(97) the provision of section 236C shall not apply to “Pakistan International Sukuk Company Limited.] 6[(97A) The provisions of sections 37, 236C and 236K shall not apply to National Highway Authority in respect of transfer of immovable property to the Pakistan Global Sukuk Programme Company Limited and in respect of transfer of immoveable property to National Highway Authority from the Second Pakistan International Sukuk Company Limited or the Pakistan Global Sukuk Programme Company Limited.] 7[(98) The provisions of section 148 shall not apply to import of ships and other floating crafts including tugs, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistani entity and flying Pakistani flag: Provided that exemption under this clause shall be available up to the year 8[2030], subject to the condition that the ships and crafts are used for the purpose for which they were procured, and in case such ships and 1 New cluse (95A) inserted through Finance Supplementary (Second Amendment) Act, 2019 2Substituted by the Finance Act, 2016. 3Clause (96) substituted by the Finance Act 2018,the substituted clause (96) reads as follows “(96)the provisions of sections 147 3[, 150A] , 151 3[, 155 and 236K] shall not apply to “The Second Pakistan International Sukuk Company Limited” 3[“and the Third Pakistan International Sukuk Company Limited”], as a recipient.” 4 Clause (96) substituted by the Finance Act, 2022. Earlier this clause was inserted through S.R.O 1457(I)/2021 dated 11.11.2021. Substituted clause read as follows: “(96) the provisions of sections 147, 150A, 151, 155 and 236K shall not apply to “The second Pakistan international Sukuk Company Limited” and the Third Pakistan International Sukuk Company Limited, as a recipient.” 5 Substituted by the Finance Act, 2016. 6 New cluse (97A) inserted by the Finance Act, 2022. Earlier this clause was inserted through S.R.O 1457(I)/2021 dated 11.11.2021. 7 Added by the Finance Act, 2016. 8 30th The figure “2020” substituted by “2030” though Finance Act, 2020 dated June, 2020 690 Second Schedule – Part IV____ __________________________ crafts are used for demolition purposes, tax collectible under section 148, applicable to ships and crafts purchased for demolition purposes, shall be chargeable.] 1[(99) The provisions of section 148 shall not apply to import or acquisition of aircraft on wet or dry lease by M/s Pakistan International Airlines Corporation with effect from 19th March, 2015.] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ] 7[ ] 8[ ] 9[ ] (102) The provisions of section 231B (1A) shall not apply to light commercial vehicles leased under the Prime Minister’s Youth Business Loan Scheme.] 10[(102A) The provisions of section 233 shall not apply to commission received by a retail branchless banking agent on any amount disbursed by the Ehsaas Emergency Cash Transfer Programme for the period commencing on 16th April, 2020 and ending on 30th day of September, 2020.] 1 Added by the Finance Act, 2016. 2 Clause (100) inserted by the Finance Act, 2018. 3 Clause (100) omitted by the Finance Act, 2023. The omitted clause read as follows: “(100) The provisions of section 236U shall not apply to an insurance collecting premium under:- (a) Crop Loan Insurance Scheme (CLIS); and (b) Livestock Insurance Scheme (LIS).” 4 Added by the Finance Act, 2017. 5 clause (101) omitted by the Finance Act 2021. The omitted clause read as follows: “(101) The provisions of section 231A shall not apply in respect of cash withdrawal made from a “Branchless Banking (BB) Agent Account” utilized to render branchless banking services to customers.] 6 New clause (101A) inserted through Finance Supplementary (Second Amendment) Act, 2019 7 clause (101A) omitted by the Finance Act 2021. The omitted clause read as follows: “(101A) The provisions of section 231A shall not apply to a Pak Rupee account if the deposits in the account are made solely from foreign remittances credited directly into such account.] 8 30th New clause (101AA) inserted through Finance Act, 2020 dated June, 2020. 9 clause (101AA) omitted by the Finance Act 2021. The omitted clause read as follows: “(101AA) The provisions of sections 231A, 231AA and 236P shall not apply to a Pak Rupee Account in a tax year to the extent of foreign remittances credited into such account during that tax year.] 10 30th New clause (102A) inserted through Finance Act, 2020 dated June, 2020. 691 Second Schedule – Part IV____ __________________________ 1[(103) The provisions of section 7B shall not apply to yield or profit on investment in Bahbood Savings Certificate or Pensioner’s Benefit Account, provided that tax on the said yield or profit on debt is paid at the rates specified in Division I of Part I of the First Schedule subject to clause (6) of Part III. (104) The provisions of section 5A shall not apply to a company where a restriction has been imposed on distribution of dividend on account of an agreement with the Government of Pakistan. 2[(104A) The provisions of section 4C shall not apply on capital gain derived from the disposal of one residential immovable property, if the property — (a) has been in the personal use of the person for the last fifteen years; (b) has been declared by the person in his wealth statement under section 116 for the last fifteen years; and (c) appears as residence for personal use in tax record of the person. Provided that this clause shall apply once in fifteen years.] 3[ ] 4[(105A) The provisions of section 177 and 214C 5[for selection of a person for audit shall not apply whose income tax affairs have been selected for audit in any of the preceding three tax years]: Provided that the Commissioner may select a person under section 177 for audit with approval of the Board.] 6[ ] 7[ ] 1 Added by the Finance Act, 2018. 2 Clause (104A) inserted by the Finance Act, 2025. 3 Clause (105) omitted through Finance Act, 2019, omitted clause read as follows: (105) The provisions of section 177 and 214C shall not apply to a person whose income tax affairs have been audited in any of the preceding three tax years: Provided that the Commissioner may select a person under section 177 for audit, with approval of the Board. 4 New clause (105A) inserted by the Finance Act, 2022. 5 The expression “shall not apply to a person whose income tax affairs have been audited in any of the preceding four tax years” substituted by Finance Act, 2025. 6 Clause (106) added by S.R.O. 887(I)/2018 dated 23.07.2018. 7 Clause (106) omitted by S.R.O. 1213(I)/2018, dated 05.10.2018.The omitted clause is read as under: [“(106) The provisions of sections in Division III of Part V of Chapter X and Chapter XII of the Ordinance for deduction or collection of tax shall not apply in the districts of Chitral, Dir and Swat (which includes Kalam), the former Tribal Area in Kohistan district, Malakand former Protected Areas the former Tribal 692 Second Schedule – Part IV____ __________________________ 1[(107) The provisions of section 111 relating to unexplained income or assets shall not apply in respect of any contribution paid to the Supreme Court of Pakistan – Diamer Bhasha & Mohmand Dams – Fund. (108) The provisions of sections 2[113 and 151] shall not apply to the Supreme Court of Pakistan – Diamer Bhasha & Mohmand Dams – Fund. 3[ ] 4[(109A) The provisions of sections in Division III of Part V of Chapter X and Chapter XII of the Ordinance for deduction or collection of withholding tax which were not applicable prior to commencement of the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018) shall not apply to individual domiciled or company and association of persons resident in the Tribal Areas forming part of the Provinces of Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Constitution with effect from the 1st day of June, 2018 to the 30th day of June, 5[ ] 6[ ] 7[2026] (both days inclusive).] 8[(110) The provisions of sections in Division III of Part V of Chapter X and Chapter XII of the Ordinance for deduction or collection of withholding tax which were not applicable prior to commencement of the Constitution (Twenty-fifth Amendment) Act, 2018 (XXXVII of 2018) shall not apply to individual domiciled or company and association of person resident in the Tribal Areas forming part of the Provinces of Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Area adjoining Mansehra district, the former State of Amb, Zhob district, Loralai district (excluding Duki Tehsil), Dalbandin Tehsil of Chagai district and Marri and former Bugti Tribal territories of Sibi district, former Tribal Areas adjoining the district of Peshawar, Kohat, Bannu, Lakki Marwat, Dera Ismail Khan, Tank as well as former Tribal Areas i.e. Bajaur Agency, Orakzai Agency, Mohmand Agency, Khyber Agency, Kurram Agency, North Waziristan Agency and South Waziristan Agency, if the payer and the recipient are residents of the aforesaid areas. Provided the provision of section 149 shall not apply in respect of persons working in the aforesaid areas even if the payer resides outside the aforesaid areas.”] 1 Added by the Finance Supplementary (Amendment) Act, 2018. 2 The expression “113, 151, 231A, 231AA and 236P “ substituted by the Finance Act 2021. 3 Clause (109) omitted by the Finance Act 2021. The omitted clause read as follows: “(109) The provisions of section 236P shall not apply at the time of transfer of any sum to the Supreme Court of Pakistan - Diamer Bhasha & Mohmand Dams- Fund.] 4 New clause (109A) added through Finance Act, 2019. 5 The figure “2023” substituted by the Finance Act, 2023. 6 The figure “2024” substituted by Finance Act, 2024. 7 The figure “2025” substituted by Finance Act, 2025. 8 Added by S.R.O. 1213(I)/2018, dated 05.10.2018. 693 Second Schedule – Part IV____ __________________________ Constitution with effect from the 1st day of June, 2018 to the 30th day of June, 1[ ] 2[ ] 3[2026] (both days inclusive).] 4[(111) The provisions of section 48 shall not apply to so much of the income of banking company as defined in the said section subject to reduced rate of tax at 20% under rules 7D, 7E and 7F of the Seventh Schedule for tax years 2020 to 2023.] 5[(111A) The provisions of section 100BA and rule 1 of the Tenth Schedule shall not apply to the extent of payment of dividend to non-resident persons.] 6[(111AB) The provisions of section 100BA and rule 1 of the Tenth Schedule shall not apply to non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) maintaining a Foreign Currency Value Account (FCVA) or Non-resident Pakistani Rupee Value Account (NRVA) with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan.] 7[(111AC) The provisions of section 100BA and rule 1 of the Tenth Schedule shall not apply to non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) in respect of transactions on which tax is collectible under section 236C and 236K of the Ordinance;] 8[ ] 9[ ] 10[ ] 11[ ] 1 The figure “2023” substituted by the Finance Act, 2023. 2 The figure “2024” substituted by Finance Act, 2024. 3 The figure “2025” substituted by Finance Act, 2025. 4 New Clause 111 added through Finance Supplementary (Second Amendment) Act, 2019 5 New clause (111A) inserted through Finance Act, 2020 dated 30th June, 2020 6 Clause (111AB) inserted by the Finance Act, 2021. Earlier this clause was inserted through Tax Laws (Amendment) Ordinance, 2021. 7 Clause (111AC) inserted by the Finance Act, 2022. 8 New clauses (112), (113), (114) and (115) added through Tax Laws (Second Amendment) 2019 dated 26th December, 2019. 9 Clause (112) omitted by the Finance Act 2021. The omitted clause read as follows: “(112) The provision of section 236P shall not apply to special convertible rupee account (SCRA) of a non-resident company having no permanent establishment in Pakistan.]” 10 30th New clause (112A) inserted through Finance Act, 2020 dated June, 2020. 11 Clause (112A) substituted through Tax Laws (Amendment) Ordinance, 2021. The substituted clause read as follows: “(112A) The provisions of section 236P shall not apply to a non-resident rupee account repatriable (NRAR) or a foreign currency account maintained with a banking company in Pakistan of a non-resident individual investing in a debt instrument, whether conventional or shariah compliant, issued by the Federal Government under the Public Debt Act, 1944.] 694 Second Schedule – Part IV____ __________________________ 1[ ] (113) The provision of sub-section (5B) of sections 147 shall not apply in respect of capital gains arising to a non-resident company having no permanent establishment in Pakistan from investment in debt instruments and Government securities including treasury bills and Pakistan investment bonds through special convertible rupee account (SCRA) maintained with a banking company or financial institution in Pakistan. (114) The provisions of section 2[“clause (ae) of sub-section (a) of section 114”] and 181 shall not apply to a non-resident company having no permanent establishment in Pakistan solely by reason of capital gain or profit on debt earned from investments in debt securities and Government securities including treasury bills and Pakistan investment bonds through special convertible rupee account maintained with a banking company or financial institution in Pakistan. 3[ ] 4[(114A) The provisions of clause (ae) of sub-section (1) of section 114 and section 181 shall not apply to a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) maintaining a Foreign Currency Value Account (FCVA) or a Non- resident Pakistani Rupee Value Account (NRVA) with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan: Provided that this clause shall not apply if the person referred in this clause has Pakistan-source taxable income other than the following; namely:— (a) profit on debt on FCVA or Non-resident Pakistani Rupee Value Account (NRVA); (b) profit on debt earned on Government of Pakistan (GOP) securities either conventional or Shariah Compliant where investment has been made from proceeds of FCVA or NRVA; 1 Clause (112A) omitted by the Finance Act 2021. The omitted clause read as follows: “(112A) The provisions of section 231A, 231AA and 236P shall not apply to the holders of Foreign Currency Value Account (FCVA) or Non-resident Pakistani Rupee Value Account (NRPRVA) in respect of these accounts only.] 2 30th The expression 115(4) substituted through Finance Act, 2020 dated June, 2020. 3 30th New clause (114A) inserted though Finance Act, 2020 dated June,2020 4 Clause (114A) substituted by the Finance Act 2021. Earlier this clause was substituted through Tax Laws (Amendment) Ordinance, 2021.The substituted clause read as follows: “(114A) The provisions of clause (ae) of sub-section (1) of section 114 and section 181 shall not apply to a non-resident individual solely by reason of profit on debt earned from a debt instrument, whether conventional or shariah compliant, issued by the Federal Government under the Public Debt Act, 1944 and purchased exclusively through a bank account maintained abroad, a non-resident rupee account repatriable (NRAR) or a foreign currency account maintained with a banking company in Pakistan.] 695 Second Schedule – Part IV____ __________________________ (c) capital gain on disposal of immovable property acquired from proceeds of FCVA or NRVA; (d) capital gain on disposal of securities traded on Pakistan Stock Exchange and units of mutual funds that are acquired from proceeds of FCVA or NRVA; or (e) dividend income from securities traded on Pakistan Stock Exchange and mutual funds that are acquired from proceeds of FCVA or NRVA.] (115) The provisions of section 153 shall not apply to traders being individuals having turnover upto one hundred million Rupees as a prescribed person. Explanation.- Trader in this clause shall have the meaning as provided in clause (28D) of Part II of the Second Schedule.] 1[(116) The provisions of section 151 2[ ] and 236P shall not apply to The Prime Minister’s COVID-19 Pandemic Relief Fund-2020. 3[ ] 4[(118) The provisions of withholding taxes contained in the Income Tax Ordinance, 2001 (XLIX of 2001) shall not apply to Islamic Naya Pakistan Certificates Company Limited (INPCCL) as a recipient. (119) The provisions of section 153(1)(a) shall with effect from the first day of July, 2020 not apply to distributors, dealers, wholesalers and retailers of locally manufactured mobile phone devices as withholding agent.] 5[(120) The provisions of Divisions II and III of Part V of Chapter X and Chapter XII of the Ordinance for deduction or collection of withholding tax shall not apply to the persons mentioned in Table 1 of clause (66) of Part I of the second schedule as recipients of payment: Provided that such persons shall continue to perform functions as withholding and collecting agent under the aforesaid provisions.] 1 30th New clauses (116) and (117) added through Finance Act, 2020 dated June, 2020 2 The expression “, 231A, 231AA and 236P“ omitted by the Finance Act 2021. 3 Clause (117) omitted by the Finance Act 2021. The omitted clause read as follows: “(117) The provisions of section 236P shall not apply at the time of transfer of any sum to The Prime Minister’s COVID-19 Pandemic Relief Fund- 2020.]” 4 Clauses (118) and (119) added by the Finance Act, 2021. Earlier these clauses were inserted through Tax Laws (Amendment) Ordinance, 2021. 5 Clause (120) added by the Finance Act, 2022. 696 Second Schedule – Part IV____ __________________________ 1[(121) The provisions of section 151 shall not apply to the Prime Minister's Relief Fund for Flood, Earthquake and other calamities with effect on and from the 5th August, 2022. (122) The provisions of section 236 shall not apply on the amount donated through SMS to the Prime Minister's Relief Fund for Flood, Earthquake and other calamities with effect on and from the 5th day of August, 2022. (123) The provisions of section 148 shall for a period of 2[three months from the 1st day of December, 2022] not apply to goods required and imported for relief operation for flood affectees, duly certified by the National Disaster Management Authority or the Provincial Disaster Management Authority. (124) The provisions of section 148 shall not apply to tomato (PCT heading 0702.0000) and onion (PCT heading 0703.1000) imported till the 31st day of December, 2022.] 1 Clauses (121), (122), (123) and (124) added by the Finance Act, 2023. Earlier these clauses were added through S.R.O. Nos. 1590(I)/2022 dated 23.08.2022, 1634(I)/2022 dated 30.08.2022 and 1639(I)/2022 dated 31.08.2022 respectively. 2 The words “ninety days” substituted through S.R.O. No. 72(I)/2023 dated 25.01.2023. 697 Third Schedule – Part I_______ __________________________

Effective date: 2001-09-13

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