"\u003chtml xmlns:o=\"urn:schemas-microsoft-com:office:office\"\r\nxmlns:w=\"urn:schemas-microsoft-com:office:word\"\r\nxmlns=\"http://www.w3.org/TR/REC-html40\"\u003e\r\n\r\n\u003chead\u003e\r\n\u003cmeta http-equiv=Content-Type content=\"text/html; charset=windows-1252\"\u003e\r\n\u003cmeta name=ProgId content=Word.Document\u003e\r\n\u003cmeta name=Generator content=\"Microsoft Word 9\"\u003e\r\n\u003cmeta name=Originator content=\"Microsoft Word 9\"\u003e\r\n\u003clink rel=File-List href=\"./2005J7008_files/filelist.xml\"\u003e\r\n\u003ctitle\u003eCORPORIFICATION OF ECONOMY\u003c/title\u003e\r\n\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003co:DocumentProperties\u003e\r\n  \u003co:Author\u003eAdministrator\u003c/o:Author\u003e\r\n  \u003co:Template\u003eNormal\u003c/o:Template\u003e\r\n  \u003co:LastAuthor\u003esaif\u003c/o:LastAuthor\u003e\r\n  \u003co:Revision\u003e2\u003c/o:Revision\u003e\r\n  \u003co:TotalTime\u003e3\u003c/o:TotalTime\u003e\r\n  \u003co:Created\u003e2005-10-18T07:06:00Z\u003c/o:Created\u003e\r\n  \u003co:LastSaved\u003e2005-10-18T07:06:00Z\u003c/o:LastSaved\u003e\r\n  \u003co:Pages\u003e8\u003c/o:Pages\u003e\r\n  \u003co:Words\u003e3109\u003c/o:Words\u003e\r\n  \u003co:Characters\u003e17724\u003c/o:Characters\u003e\r\n  \u003co:Company\u003eOratier Technologies (Pvt) Ltd.\u003c/o:Company\u003e\r\n  \u003co:Lines\u003e147\u003c/o:Lines\u003e\r\n  \u003co:Paragraphs\u003e35\u003c/o:Paragraphs\u003e\r\n  \u003co:CharactersWithSpaces\u003e21766\u003c/o:CharactersWithSpaces\u003e\r\n  \u003co:Version\u003e9.2720\u003c/o:Version\u003e\r\n \u003c/o:DocumentProperties\u003e\r\n\u003c/xml\u003e\u003c![endif]--\u003e\r\n\u003cstyle\u003e\r\n\u003c!--\r\n /* Style Definitions */\r\np.MsoNormal, li.MsoNormal, div.MsoNormal\r\n\t{mso-style-parent:\"\";\r\n\tmargin:0in;\r\n\tmargin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:12.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-fareast-font-family:\"Times New Roman\";}\r\np.MsoSalutation, li.MsoSalutation, div.MsoSalutation\r\n\t{mso-style-next:Normal;\r\n\tmargin:0in;\r\n\tmargin-bottom:.0001pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:12.0pt;\r\n\tfont-family:\"Times New Roman\";\r\n\tmso-fareast-font-family:\"Times New Roman\";}\r\np.AttentionLine, li.AttentionLine, div.AttentionLine\r\n\t{mso-style-name:\"Attention Line\";\r\n\tmso-style-next:Salutation;\r\n\tmargin-top:11.0pt;\r\n\tmargin-right:0in;\r\n\tmargin-bottom:11.0pt;\r\n\tmargin-left:0in;\r\n\ttext-align:justify;\r\n\tline-height:11.0pt;\r\n\tmso-pagination:widow-orphan;\r\n\tfont-size:10.0pt;\r\n\tfont-family:Arial;\r\n\tmso-fareast-font-family:\"Times New Roman\";\r\n\tmso-bidi-font-family:\"Times New Roman\";\r\n\tletter-spacing:-.25pt;}\r\n@page Section1\r\n\t{size:8.5in 11.0in;\r\n\tmargin:1.0in 1.25in 1.0in 1.25in;\r\n\tmso-header-margin:.5in;\r\n\tmso-footer-margin:.5in;\r\n\tmso-paper-source:0;}\r\ndiv.Section1\r\n\t{page:Section1;}\r\n--\u003e\r\n\u003c/style\u003e\r\n\u003cscript src=\"../../../nc.js\" type=\"text/javascript\" \u003e\u003c/script\u003e\r\n  \r\n\r\n \r\n\r\n\u003cbody lang=EN-US style=\u0027tab-interval:.5in\u0027\u003e\r\n\r\n\u003cdiv class=Section1\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003eCORPORIFICATION OF\r\nECONOMY\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003e[Comments on\r\nFinance Bill 2005]\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003eBy\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003e\u003cbr\u003e\r\n\u003cspan style=\u0027letter-spacing:.4pt;mso-bidi-font-weight:bold;mso-bidi-font-style:\r\nitalic\u0027\u003eProfessor Masood Ahmed Abbasi, Karachi\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:.4pt;\r\nmso-bidi-font-weight:bold;mso-bidi-font-style:italic\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eOn cursory glancing over the\r\nbudgetary finance bill, it is apparent that a number of proposals stand to\r\nrectify the existing clerical, grammatical and printing errors of omission and\r\ncommission crept into existing fiscal laws caused \u003cspan style=\u0027mso-bidi-font-weight:\r\nbold\u0027\u003eby \u003c/span\u003einefficiency and sense of \u003cspan style=\u0027mso-bidi-font-weight:\r\nbold\u0027\u003eirresponsibility \u003c/span\u003eprevailing with the \u003cspan style=\u0027mso-bidi-font-weight:\r\nbold\u0027\u003ebureaucracy \u003c/span\u003eaccountable to none. It is, therefore, advisable to\r\ncomment on meaningful and substantial amendments proposed in Finance Bill 2005\r\nconsisting of:\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003ePara 1\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003c/b\u003e\u003cspan style=\u0027mso-tab-count:\r\n1\u0027\u003e            \u003c/span\u003eShort title, extent \u003cspan style=\u0027mso-bidi-font-weight:\r\nbold\u0027\u003eand \u003c/span\u003ecommencement - consisting of three clauses.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003ePara 2 \u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003e\u003c/b\u003eSubstitution\r\nof Act of 1944, consisting of one clause.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003ePara 3 \u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003e\u003c/b\u003eAmendments\r\nof Act IV of 1969 consisting of six clauses.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:1.0in;text-align:justify;text-indent:\r\n-1.0in\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:normal\u0027\u003ePara 4 \u003c/b\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eAmendments of Customs Schedule, West\r\nPakistan Ordinance XX of 1969, consisting of one clause.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003ePara 5 \u003c/b\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eAmendments\r\nof \u003cspan style=\u0027mso-bidi-font-weight:bold\u0027\u003eEmployees \u003c/span\u003eOld Age Benefits\r\nAct, 1976\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003ePara 6 \u003c/b\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eAmendments\r\nof Finance Act 1989, consisting of one \u003cspan style=\u0027mso-bidi-font-weight:bold\u0027\u003eclause.\u003co:p\u003e\u003c/o:p\u003e\u003c/span\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003ePara 7 \u003c/b\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eAmendments\r\nof Sales \u003cspan style=\u0027letter-spacing:.4pt;mso-bidi-font-style:italic\u0027\u003eTax \u003c/span\u003eAct,\r\n1990, consisting of thirty-three clauses.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:1.0in;text-align:justify;text-indent:\r\n-1.0in\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:normal\u0027\u003ePara \u003cspan style=\u0027mso-bidi-font-weight:\r\nbold\u0027\u003e8 \u003c/span\u003e\u003c/b\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eAmendments\r\nof the \u003cspan style=\u0027mso-bidi-font-weight:bold\u0027\u003eProtection \u003c/span\u003eof \u003cspan\r\nstyle=\u0027mso-bidi-font-weight:bold\u0027\u003eEconomic \u003c/span\u003eReforms Act, 1992, consisting\r\nof one clause.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027margin-left:1.0in;text-align:justify;text-indent:\r\n-1.0in\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:normal\u0027\u003ePara 9 \u003c/b\u003e\u003cspan\r\nstyle=\u0027mso-tab-count:1\u0027\u003e            \u003c/span\u003eAmendments of the Income Tax\r\nOrdinance 2001, consisting of fifty-one clauses.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003ePara 10\u003cspan style=\u0027mso-tab-count:1\u0027\u003e           \u003c/span\u003e\u003c/b\u003e Amendments\r\nof Finance Act 2003, consisting of one clause.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eConfining this study to Para 9 of\r\nthe Finance Bill, relating to amendments proposed in Income Tax Ordinance 2001,\r\nit may be stated at the very outset that this Ordinance was transplanted in\r\n2001 rendered effective in 2002 and actually enforced in 2003, converting the\r\nold original basic concept of assessee returning his income and tax-liability\r\nand assessor assessing the same year after year, into the concept of assessee\r\nassessing his own income and tax-liability and assessor detecting concealment\r\n\u0026amp; evasion like Scotland-yard. Old concept dating back to the year 1922, had\r\nbeen functioning satisfactorily both in Hindustan \u0026amp; Pakistan for the last\r\nover three quarters of a century, and inspite of all the adhocism and lack of\r\nwill and ability of CBR, Withholding \u0026amp; Presumptive Tax Regime; though\r\nimpairing the progressive direct-tax- character of Income Tax, had been pulling\r\nthe apple-cart that the sitting regime upturned without any sound reason or\r\nimprovement. On deeper study of this dramatic change in the Law of Income Tax\r\nit may be discerned that it is all done to protect and promote the interest and\r\ncause of Corporate Sector, which like the Feudal Lords in Rural Sector, owns\r\nand possesses about seventy-five percent of Urban Capital and generates like\r\namount of Income. The power and influence of this Sector over the Government\r\ncan be gauged from the fact that only a few years before the enforcement of the\r\nexisting Income Tax Ordinance 2001, they had succeeded to snatch the concession\r\nof \u0027Self - Assessment Schemes, basically intended for Fixed Income \u0026amp; Lower\r\n\u0026amp; Middle Class Tax Payers, extended to them. This measure was outspoken by\r\nitself that mighty and strong corporate sector did not allow the CBR even to peep\r\ninto and audit their accounts from Income point of view, which have already\r\nbeen audited under Companies Ordinance 1984, from the point of view of\r\nshare-holders.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eAs a matter of fact, the Law of\r\nIncome \u003cspan style=\u0027letter-spacing:.4pt\u0027\u003eTax \u003c/span\u003ealready plagued by the\r\nWithholding \u0026amp; Presumptive Taxes on the one hand, and virtually whole sole\r\nextension of Self Assessment Scheme to all and sundry with minor safeguard\u0027s to\r\nprevent brazenfaced and crude evasion of tax-liability, lost its efficacy\r\nutility and impact on the society. This situation raised its head high in\r\n1990\u0027s, when CBR suffering profusely from Corruption and Inefficiency coupled\r\ntogether, was unable to enhance the returned tax-liability through the exercise\r\nof assessment by even ten percent. This malady existed as long ago as 1960\u0027s\r\nwhen during the Finance Minister-ship of Mr. Shoib, the Raja Todarmal of the\r\nmost benevolent ruler of Pakistan Field\u0027 Marshall Ayub Khan, was obliged to\r\nintroduce Self Assessment Scheme, realizing that CBR had lost all its original\r\nutility by failing to ensure the Tax Compliance inspite of enjoying vast\r\nrigorous powers to do \u003cspan style=\u0027letter-spacing:.4pt\u0027\u003eso, \u003c/span\u003ewhich its\r\nofficers utilized for their personal gains instead of collecting tax due to the\r\nexchequer. But the Government by itself has also equally failed to cultivate a\r\ncongenial atmosphere for collecting this most civilized and democratic direct\r\ntax which by its very nature involves consciousness of sacrifice and generates\r\nan urge to evade and avoid unless it is countered by conferment of economic and\r\nsocial rewards, inculcation of national and patriotic sentiments, and over and\r\nabove all making tax-payers realize that they themselves are the beneficiaries,\r\nwhen these taxes are ploughed back in the economy, in the same proportion in\r\nwhich they have contributed. It is thus in the very nature of things that\r\nIncome Tax can be levied and collected beneficially, only by a benevolent\r\nGovernment, which can infuse philanthropic spirit in the `haves\u0027 of the society\r\nto render some sacrifice for the. welfare of the `have-nots\u0027.\r\n\u0026quot;Equality\u0026quot; \u0026amp; \u0026quot;brotherhood\u0026quot; the cardinal \u0026amp;\r\noutstanding features of Islam have to be practised more than preached from\r\npulpit.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eOur Governments from its very\r\ninception are bent upon keeping all their eggs in Macro Basket of the Economy\r\nlaying all their emphasis on production, and losing sight of Micro Obligations\r\nof the Economy demanding equitable distribution. They have failed to realize\r\nthat both Macro \u0026amp; Micro Economies are twin-sisters and two sides of the\r\nsame coin, for one can neither survive nor prosper without the other. The sooner\r\ndue attention is diverted to this aspect. of the economy the sitting managers\r\nmay not accomplish their uphill task of national welfare and prosperity. In\r\nkeeping with their Plan, our. Governments have been nourishing and patronizing\r\nCorporate Sector, apparently under foreign dictates, by conferring unorthodox\r\nconcessions and privileges upon them at the cost of the poor and middle class,\r\nto keep the wheel of economy moving swiftly and comfortably.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eMany historians believe that the\r\nfirst chapter of the Fall of glorious Moghul Empire was authored by Emperor\r\nShah Alam Sani while he granted Diwani Rights of collecting the taxes to East\r\nIndia Company from the Province of Bengal, Bihar \u0026amp; Orissa for the paltry\r\nsum of Rs. 26 Lac per year, in the year 1765, because the decaying Emperor\r\nfound it cumbersome and painstaking to collect taxes from these far-flung\r\nterritories. The question arises whether economic Monopolies \u0026amp; Cartels can\r\nbe countenanced by any Political Government established merely to protect the\r\nteeming millions from the clutches of the rich \u0026amp; powerful. Every Government\r\nhas to answer it either readily to its own people or eventually to themselves\r\nwhen consigned to the dustbin of History.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eWhile nobody would deny the\r\nMulti-Nationals and our own giant size Companies to ensure large-scale\r\nproduction, nobody would allow them to own and hoard lion-share in their\r\ncoffers. Following one of the most cardinal cannons of taxation propounded by\r\nAdam Smith, that is Equity, which other Sector in the economy deserves to\r\ncontribute larger amount of income-tax than Corporate Sector, which enjoys all\r\nthe economic benefits in its,\u0027 very formation. Limited liability on the one\r\nhand, and being the Legal Person, elimination of direct brunt of payment of\r\ntax, on the other. Who in the right frame of his mind, can tolerate BANKING AND\r\nINSURANCE COMPANIES, involving no, or in any case, least entrepreneurial risks\r\nin their business, not contributing the largest share of their income with the\r\nState.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eYet our MACRO ECONOMY Government\r\nhas placed the following table of Tax rates from its very inception on its\r\nstatute-book.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003cb style=\u0027mso-bidi-font-weight:\r\nnormal\u0027\u003eTAX YEAR. BANKING COM. PUBLIC COM. \u0027 PRIVATE COM.\u003co:p\u003e\u003c/o:p\u003e\u003c/b\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003ctable border=0 cellspacing=0 cellpadding=0 style=\u0027border-collapse:collapse;\r\n mso-padding-alt:0in 0in 0in 0in\u0027\u003e\r\n \u003ctr style=\u0027height:.2in\u0027\u003e\r\n  \u003ctd width=178 valign=top style=\u0027width:133.45pt;border-top:solid windowtext .25pt;\r\n  border-left:none;border-bottom:solid windowtext .25pt;border-right:none;\r\n  padding:0in 0in 0in 0in;height:.2in\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e(1)\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=87 valign=top style=\u0027width:65.5pt;border-top:solid windowtext .25pt;\r\n  border-left:none;border-bottom:solid windowtext .25pt;border-right:none;\r\n  padding:0in 0in 0in 0in;height:.2in\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e(2)\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=75 valign=top style=\u0027width:55.95pt;border-top:solid windowtext .25pt;\r\n  border-left:none;border-bottom:solid windowtext .25pt;border-right:none;\r\n  padding:0in 0in 0in 0in;height:.2in\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e(3)\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=57 valign=top style=\u0027width:42.7pt;border-top:solid windowtext .25pt;\r\n  border-left:none;border-bottom:solid windowtext .25pt;border-right:none;\r\n  padding:0in 0in 0in 0in;height:.2in\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e(4)\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027height:.3in\u0027\u003e\r\n  \u003ctd width=178 valign=top style=\u0027width:133.45pt;border:none;mso-border-top-alt:\r\n  solid windowtext .25pt;padding:0in 0in 0in 0in;height:.3in\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e2002\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=87 valign=top style=\u0027width:65.5pt;border:none;mso-border-top-alt:\r\n  solid windowtext .25pt;padding:0in 0in 0in 0in;height:.3in\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e50%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=75 valign=top style=\u0027width:55.95pt;border:none;mso-border-top-alt:\r\n  solid windowtext .25pt;padding:0in 0in 0in 0in;height:.3in\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e35%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=57 valign=top style=\u0027width:42.7pt;border:none;mso-border-top-alt:\r\n  solid windowtext .25pt;padding:0in 0in 0in 0in;height:.3in\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e45%\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027height:15.85pt\u0027\u003e\r\n  \u003ctd width=178 valign=top style=\u0027width:133.45pt;padding:0in 0in 0in 0in;\r\n  height:15.85pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e2003\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=87 valign=top style=\u0027width:65.5pt;padding:0in 0in 0in 0in;\r\n  height:15.85pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e47%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=75 valign=top style=\u0027width:55.95pt;padding:0in 0in 0in 0in;\r\n  height:15.85pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e35%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=57 valign=top style=\u0027width:42.7pt;padding:0in 0in 0in 0in;\r\n  height:15.85pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e43%\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027height:15.35pt\u0027\u003e\r\n  \u003ctd width=178 valign=top style=\u0027width:133.45pt;padding:0in 0in 0in 0in;\r\n  height:15.35pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e2004\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=87 valign=top style=\u0027width:65.5pt;padding:0in 0in 0in 0in;\r\n  height:15.35pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e44%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=75 valign=top style=\u0027width:55.95pt;padding:0in 0in 0in 0in;\r\n  height:15.35pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e35%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=57 valign=top style=\u0027width:42.7pt;padding:0in 0in 0in 0in;\r\n  height:15.35pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e41%\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027height:15.15pt\u0027\u003e\r\n  \u003ctd width=178 valign=top style=\u0027width:133.45pt;padding:0in 0in 0in 0in;\r\n  height:15.15pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e2005\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=87 valign=top style=\u0027width:65.5pt;padding:0in 0in 0in 0in;\r\n  height:15.15pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e41%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=75 valign=top style=\u0027width:55.95pt;padding:0in 0in 0in 0in;\r\n  height:15.15pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e35%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=57 valign=top style=\u0027width:42.7pt;padding:0in 0in 0in 0in;\r\n  height:15.15pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e39%\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027height:15.6pt\u0027\u003e\r\n  \u003ctd width=178 valign=top style=\u0027width:133.45pt;padding:0in 0in 0in 0in;\r\n  height:15.6pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e2006\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=87 valign=top style=\u0027width:65.5pt;padding:0in 0in 0in 0in;\r\n  height:15.6pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e38%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=75 valign=top style=\u0027width:55.95pt;padding:0in 0in 0in 0in;\r\n  height:15.6pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e35%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=57 valign=top style=\u0027width:42.7pt;padding:0in 0in 0in 0in;\r\n  height:15.6pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e37%\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n \u003ctr style=\u0027height:16.3pt\u0027\u003e\r\n  \u003ctd width=178 valign=top style=\u0027width:133.45pt;padding:0in 0in 0in 0in;\r\n  height:16.3pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e2007\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=87 valign=top style=\u0027width:65.5pt;padding:0in 0in 0in 0in;\r\n  height:16.3pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e35%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=75 valign=top style=\u0027width:55.95pt;padding:0in 0in 0in 0in;\r\n  height:16.3pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:\r\n  .1pt\u0027\u003e35%\u003c/span\u003e\u003c/p\u003e\r\n  \u003c/td\u003e\r\n  \u003ctd width=57 valign=top style=\u0027width:42.7pt;padding:0in 0in 0in 0in;\r\n  height:16.3pt\u0027\u003e\r\n  \u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e35%\u003c/p\u003e\r\n  \u003c/td\u003e\r\n \u003c/tr\u003e\r\n\u003c/table\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eIt is interesting to note that\r\nalmost all the Civil and Military Governments act under the dictates of\r\nCORPORATE SECTOR, as from the assessment year 1993-94 to 1998-99, the rates of\r\ntax on BANKING COMPANIES have been gradually reduced year-wise from 64% to 58%\r\nand on PUBLIC COMPANIES reduced year wise from 42% to 33% \u0026amp; on PRIVATE\r\nCOMPANIES reduced from 52% to 43%. Now to give further incentive to encourage\r\nindividuals, associations and firms, to convert their business into the status\r\nof COMPANIES, the Government has granted a concessional rate of tax 20% to\r\nmiddle-class entrepreneur with maximum paid up capital of rupees Twenty Five\r\nLac and turnover of Rupees Two Crores, which is quite justified to facilitate\r\ndocumentation of economy on the one hand and provide incentive of limited\r\nliability to investors, on the other.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eIn order to facilitate the\r\napplication of sales tax @ 3% on retailers of textile products and leather\r\narticles, carpets and surgical and sports goods having turnover exceeding Fifty\r\nLac Rupees. They shall pay income tax @ 1% inclusive therein. \u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe Commissioner is to select a\r\nperson for an Audit having regard to certain aspects of the case enumerated in\r\nsection 177(4). Now section 120 providing for finality of self assessment by the\r\nassessee, is proposed to be amended to vest the power in Commissioner to select\r\nany person at his own discretion, without assigning any reasons. Thus\r\nhenceforth the Commissioner, before selecting a case for Audit is not under any\r\nlegal obligation to express or intimate any reasons for doing so.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe unlimited powers of the\r\nCommissioner (Appeal), particularly those relating to setting aside the\r\nassessment order for de novo assessment, have been curtailed. Matters requiring\r\nfurther enquiries or adducing fresh evidence were usually set aside for de novo\r\nassessment, Now the Commissioner (Appeal) in such cases would make such.\r\nenquiries and take such evidence himself before confirming, modifying or\r\nannulling the assessment order. This will enhance the responsibility of CIT (A)\r\nand save both assessor and assessee from duplicating the same exercise.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eSince the Taxation Laws can not\r\nafford the scrutiny and lethargy of judicial proceedings, in income tax law\r\nright from its very inception in the year 1922, overhauled in 1939, two appeals\r\nwere provided against the quasi-judicial order of the Income Tax Officer, being\r\nthe original authority of jurisdiction, responsible for assessing income and\r\ntax liability and collect such tax from assessee. First appeal was provided\r\nbefore the appellate Assistant Commissioner and second appeal was provided both\r\nto the Income Tax Officer and assessee, aggrieved by the first appellate order,\r\nbefore the Income Tax Appellate Tribunal, which was constituted to function as\r\nthe Second \u0026amp; Final Appellate Authority. Though the Jurisdiction of the\r\nCourts was expressly ousted, as a complete full- fledged machinery and\r\nprocedure was provided within the Income Tax Act to resolve all disputes and\r\ndifferences between the assessor and the assessee, yet it was deemed desirable\r\nto keep Income Tax assessment proceedings open to JUDICIAL LIGHT and GUIDANCE\r\nat the highest judicial forum for the use and benefit of the highest appellate\r\nAuthority through the window of `REFERENCE\u0027 strictly on points of Law arising\r\nout of the final appellate order of the Tribunal. To get intricate and\r\ncontroversial `point of law\u0027 adjudicated even at the highest level of the\r\nSupreme Court, an appeal was further provided against the judgement of the High\r\nCourt, to provide complete satisfaction to both the assessor and assessee of\r\ncorrect application of law in determination of tax liability. This system,\r\nbeing full of centuries old wisdom has worked in British India as well as\r\nHindustan and Pakistan satisfactorily as it provides absolute judicial scrutiny\r\nwith out hampering the expediency and swift disposal of final tax liability.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eSometimes procedural amendments\r\nhave been brought about in this system, but soon they failed. At one point of\r\ntime in our country the REFERENCE was substituted by direct appeal on point of\r\nLaw before High Court, which were flooded with such appeals and had to waste\r\nprecious time on \u0027katchi pashi\u0027 to determine whether `the point of Law fit for\r\ndecision of the Court did actually arise, and the function hitherto discharged\r\nby the Tribunal before referring it to the High Court was to consume time of\r\nthe Court, which they could ill-afford, having heavy burden of their own,\r\nnormal appellate, revisional and supervisory work-load. Moreover converting\r\n\u0027REFERENCE\u0027 jurisdiction to `APPEAL\u0027 jurisdiction, even though on \u0027point of\r\nlaw\u0027 expands the jurisdiction of the Court to travel from one end to another,\r\non to all the points of law involved in the case, and itself pass an effective\r\nand exhaustive appellate order merging all subordinate authorities orders\r\nwithin it, instead of confining its judgment only on the \u0027point of law\u0027\r\nreferred to it for the guidance and compliance of the Tribunal only.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eA via media is now being proposed\r\nby retaining \u0027REFERENCE\u0027 to High Court but allowing the parties to make it\r\ndirect and bye pass the Tribunal from determining the \u0027fitness\u0027 of the point of\r\nlaw for the judgement of the Court. Even the correctness of the statement of\r\nthe case setting out the facts submitted by one party would be controverted by\r\nthe other party requiring the High Court to unnecessarily spend time to resolve\r\nthe controversy. It is strongly suggested that the proposed change to the\r\nexisting procedure, full of wisdom, would be a change for the worse.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eJurisdiction of Appeal before the\r\nSupreme Court enshrined in section 134, is proposed to be omitted. The\r\njurisdiction of Supreme Court as presently contained in this section is\r\nessential for after judgment of the High court no Point of law remains begging\r\nof further judgment by the Supreme court unless so found fit by the High Court\r\nitself. Secondly Income Tax, being a federal tax enforced in all the provinces\r\nalike, needs to be finally adjudged and decided by the Supreme Court,\r\nparticularly in dissenting Judgments of different High Courts, as it happens to\r\nbe the highest authority in finally laying the law and deciding a question of\r\nlaw, binding upon all other Courts in Pakistan, under article 189 of the\r\nConstitution. Let Clause (2), instead of Clause (3) of Article 185 of the constitution\r\ncontinue to apply in such cases.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eOur Government is fond of making\r\nserious changes every now and then in laws of the land without any sound\r\nreasons and material \u0026amp; substantial effect. To grant relief to salaried\r\nassessees, standard rate structure for all assesses was kept intact in table of\r\nPart 1 of Division 1 of First Schedule, and concessional slab was provided in\r\npart III of second schedule ranging from 70% reduction down to 5% reduction in\r\ntax liability on income of Rs. 60,000 to Rs. 10,00,000. This indirect relief\r\nalready given to salaried assessees, is now proposed to be reflected in direct\r\nreduced rate structure, with added relief ranging roughly from 6% to 10%\r\nprogressively from lower slab of rupees one lac to higher slab of rupees forty\r\neight lac. The difference noticeable in direct relief method is that it is\r\nprogressive from lower to higher @ 6% to 10% whereas the indirect relief was\r\nprogressive from higher to lower slab @ 5% to 70%. In view of the entirely\r\nearned income of the salaried person, the amendment is quite justified.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe final tax-liability of\r\ncontractors, other than sellers of goods and providers of services, being 5%\r\nupto three crore and 6% over, is now enhanced to 6% in all cases. Final tax\r\nliability in respect of sellers of goods shall be 6%, whereas adjustable\r\ndeduction in respect of providers of services shall also be 6%.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eFinal tax-liability of deduction\r\nat source of tax on commission and brokerage income is proposed to be 5% of the\r\namount paid to indenting commission agents, advertising agents and\r\nyarn-dealers, whereas 10% on all others.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eTelephone having become a common\r\n\u0027man\u0027 use the progressive slab of Rs.50 on monthly bills of Rs.1000 to Rs.2000,\r\nRs.100 on Rs.2000 to Rs.3000 Rs.200, on Rs. 3000 to Rs.5000 and Rs.300 above\r\nRs.5000 is proposed to be deducted at the uniform rate 10% on bills exceeding\r\nRs.1000 which being non progressive, is not justified.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eAnother significant unwarranted\r\nand undue amendment proposes to grant exemption from tax on income derived by\r\nan individual from transfer of his membership rights or shares of a stock\r\nexchange in Pakistan to a Company at any time between the first day of July,\r\n2005, and the thirtieth day of June 2006.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eConcession of 50% rebate to\r\nsenior citizens aged 65 years or more presently available upto income not\r\nexceeding 3 lac is proposed to be enhanced to the limit of income upto rupees 4\r\nlac, which, in view of money losing all its purchasing power is justified.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eLikewise relief of 50% of\r\ntax-liability permissible to the teachers and researchers is further enhanced\r\nto 75%, which is a reasonable incentive to useful citizens.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eThe provisions of section 111\r\nrelating to UNEXPLAINED INCOME OR ASSETS under Chapter VIII (ANTI AVOIDANCE)\r\nhave been qualified by clauses 5 to 10 of part IV (EXEMPTION FROM SPECIFIC\r\nPROVISIONS) of Second Schedule. The provisions of clause (7) relating to THREE\r\nYEARS FOREIGN CURRENCY BEARER CERTIFICATES and clause (8) relating to cash\r\nwithdrawn or assets \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003epurchased from Private\r\nForeign Currency Accounts or Certificates or US\u003c/span\u003e Dollars Bearer\r\nCertificates and Foreign Currency Bearer Certificates \u003cspan style=\u0027letter-spacing:\r\n-.1pt\u0027\u003ehave been carried over to clause (5), which has been redrafted and these\u003c/span\u003e\r\nclauses (7) and (8) are accordingly omitted. Clauses (6) and (9) were already\r\nomitted in the year 2003.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eProvisions\r\nof section 113 relating to minimum tax on the income\u003c/span\u003e of certain persons\r\nunder Chapter IX (MINIMUM TAX) were excluded \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003efrom\r\ntheir\u003c/span\u003e \u003cspan style=\u0027letter-spacing:-.1pt;mso-bidi-font-weight:bold\u0027\u003eapplication\r\n\u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eby virtue of clauses 11 to 25 of Part\r\nIV of Second\u003c/span\u003e \u003cspan style=\u0027mso-bidi-font-weight:bold\u0027\u003eSchedule. \u003c/span\u003eThese\r\nclauses are now proposed to be amended by including almost all the provisions\r\nof clauses (12), (13), (13A), (15), (16), (18), (20), (21), (22), (22A), (23),\r\n(24) and (25) into clause (11). These \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eclauses\r\nhave\u003c/span\u003e \u003cspan style=\u0027letter-spacing:-.1pt;mso-bidi-font-weight:bold\u0027\u003eaccordingly\r\n\u003c/span\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003ebeen omitted, whereas clauses (14),\r\n(16) \u0026amp;(19)\u003c/span\u003e have been retained.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eLikewise Provisions of section\r\n148 relating to IMPORTS under Division II (Advance Tax Paid to a Collecting\r\nAgent) of Part IV of Chapter X (Procedure) are qualified by clauses (26), (27),\r\n(28), 29, (30), (31), and (31A) of Part IV of Second Schedule. All these\r\nclauses excepting clause (29) are proposed to be omitted.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eLikewise the provisions of\r\nSection 151 (PROFIT ON DEBT) Division III (Deduction of Tax at Source) of Part\r\nIV of Chapter X are qualified for exemption by clauses (33), (34), (35), (36),\r\n(36A), (37), (38), (38A) \u0026amp; (38B) of Part IV of Second Schedule. Out of it\r\nclauses (34), (35) \u0026amp; (37) have been retained and others are omitted.\r\nExemption regarding profit on National Savings Schemes presently appearing in\r\nclause (7) of Part II of Second Schedule has been omitted there and brought\r\nalongwith Term Finance Certificate here in Part IV of Second Schedule.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eSubsection (6) of section 153\r\n(Payments for Goods \u0026amp; Services) relating to finality of tax on income was\r\nqualified by clause (40) of Part IV of Second Schedule. This Clause is now\r\nproposed to be omitted.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eSince clauses (26), (27), (28),\r\n(29), (30), (31) and (31A) relating to IMPORTS have been omitted, alternative\r\nclause (56) \u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003econsisting of as many as twelve\r\nsub-clauses excluding application of the\u003c/span\u003e provisions of section 148 is\r\nproposed to be inserted.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027letter-spacing:-.1pt\u0027\u003eThird\r\nSchedule Part I (Depreciation) enumerates thirteen classes\u003c/span\u003e of assets\r\nproviding separate rates of depreciation on their written down value. This\r\nClass of Assets is now proposed be reduced to FOUR only providing (a) Building\r\n@ 10% (b) Furniture, Plant \u0026amp; Machinery, Motor Vehicle Ships, Technical or\r\nProfessional Books @ 15% (c) Computer Hardware @ 30% (d) Mineral Oil\r\nConcerns-below ground Installation 100% and offshore platform and production\r\ninstallations @ 20%. The revision is simplified and justified.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eAnother substantial relief to\r\ncorporate sector is provided by inserting clause (6A) in Fourth Schedule which\r\nrelates to Rules for the Computation of the Profit \u0026amp; Gains of Insurance\r\nBusiness. This new clause is inserted to provide the exemption of Capital\r\nGains, from the sale of shares, modaraba certificates, or any instrument of\r\nredeemable capital, or shares of a Public Company, derived upto the Tax Year\r\nending on thirtieth day of June 2007.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eA regrettable apparent error of\r\nclerical nature mentioning section 2(49) relating to definition of the term\r\n`RENT\u0027 instead of the correct figure 2(48) relating to the definition of the\r\nterm RECOGNIZED PROVIDENT FUND appears in the heading of Part 1 of the Second\r\nSchedule, which is now proposed to be rectified on the Law Ministry having\r\nawakened after four long years of slumber. One cannot restrain requesting the\r\nGovernment of Pakistan to engage atleast one Local Draftsman competent to read\r\nand write correct Legal English, and review all the Federal Statutes that they\r\nget enacted and administer, mainly the Fiscal Statues that create monetary\r\nliability of the Citizens.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003eBefore concluding this treatise I\r\nmay invite the attention of the worthy Government to seriously peruse my Article\r\ntitled \u0026quot;Alternate Dispute Resolution (in the Law of Income Tax)\u0026quot;\r\nrecently published in PTD, May 2005 Journal Page 94 \u0026amp; Daily \u003cspan\r\nstyle=\u0027mso-bidi-font-weight:bold\u0027\u003eDawn \u003c/span\u003edated: 23/08/2004, instead of\r\ncontinuing to waste their precious time on making changes and amendments in it.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal\u003e\u003c![if !supportEmptyParas]\u003e\u0026nbsp;\u003c![endif]\u003e\u003co:p\u003e\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003c/div\u003e\r\n\r\n\u003c/body\u003e\r\n\r\n\u003c/html\u003e\r\n"