Punjab Finance Bill----7----(Lahore)

...:5. Amendments in Act XLIII of 2012- In the Punjab Revenue Authority Act 2012, (XLIII of 2012) (1) In section 3, in subsection (4) for the words "not less than four members to" the words "such number of members as may" shall be substituted.

(2) In Chapter VI, for the heading "APPEALS AND REFERENCES", the heading "APPELLATE TRIBUNAL", shall be substituted.

(3) In section 18, ion subsection (3) in clause (a), in sub-clause (iii), after the word "belongs" the word "or has belonged" shall be inserted.

(4) Sections 19 and 20 shall be omitted.

6. Amendment in Act XXXV of 2016- In the Punjab Finance Act 2016 (XXXV of 2016), in section 10, sub section (1), for the existing table, the following shall be substituted: Sr.No Category of imported motor car Rate of Tax (a) Motor car with engine capacity Rs 15,000 exceeding 1300cc but not exceeding 1500cc.

(b) Motor car with engine capacity exceeding 1500cc but not exceeding Rs 25,000 2000cc.

(c) Motor car with engine capacity exceeding 2000cc but not exceeding Rs 100,000 2500cc (d) Motor car with engine capacity Rs 300,000 exceeding 2500cc.

STATEMENT OF OBJECTS AND REASONS The board of revenue, Punjab has proposed to revise the Rates of stamp duty chargeable as adhesive stamps under the Schedule-I of the Stamp Act, 1899 in order to rationalize the rates in view of inflation rate by the flux of time.

2. The operational experience gained by punjab Revenue Authority during the preceding financial year has necessitated introduction of some procedural and technical amendments in the Punjab Sales Tax on Services Act, 2012, intended for improving compliance of the law.

The technical amendments cover the issues of adding definitions of taxable services, delegating certain functions to the Commissioner, updating appeal related provisions, enhancing time of retention of record and recovery of short paid tax from 'five' to 'eight' years and providing direct statutory backing to an existing rules relating to electronic monitoring of taxable services and enforcement actions to preclude litigation.

3. In order to plug compliance gaps arising out of the diversities of tax on services, tariff interpretations and descriptions of a few taxable services have been modified to remove gaps and misapplication of the law. The over all objective is to broaden the base of Punjab Sales tax on services Act 2012, and maximize revenue generation in public interest.

4. The Excise taxation and narcotics control Department has proposed amendments in the Punjab Finance act 2016 in order to make recovery mechanism more efficient and to rationalize the rate of tax imposed on imported motor cars.

5. In order that relief be provided to the motor vehicles owners amendments to the Punjab Motor Vehicles Taxation Act, 1958 have been proposed for the purpose.

6. Hence this bill.