Amendments in the Income Tax Rules, 2002.

GOVERNMENT OF PAKISTAN REVENUE DIVISION FEDERAL BOARD OF REVENUE -------------------- Islamabad, the 17th September, 2008 NOTIFICATION (Income Tax) S. R. O. 998 (I)/2008.- In exercise of the powers conferred by sub- section (1) of section 237 of the Income Tax Ordinance, 2001(XLIX of 2001), the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Income Tax Rules, 2002, the same having previously been published as required by sub-section (3) of the said section, namely:- In the aforesaid Rules, in the Second Schedule, for “Part X”, the following shall be substituted, namely:-

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DIRECT TAXES WITHHOLDING TAXES TAX RATE CARD - TAX YEAR 2008 Payment Nature of Section Payment Code Description Rate Section 14801 148-Import of goods @ 6% 2% 148 14802 148-Import of capital goods @ 1% (Clause 13G, 2nd Schedule) 1% 148 Imports 14803 148-Import of scrap/stationery items @ 2% (Clause 13H, 2nd Schedule) omitted by Finance Act 2008 - 148 14804 148-Import of Edible oil @ 3% (Clasue 13, 2nd Schedule) 3% 148 14902 149-Salary - Govt. Employees (Other than Federal) As per 149 - Others 149 Salary 1490314901 149-Salary - Federal 149 149-Salary Rates 15001 150-Dividend paid to public companies, insurance companies and resident companies 10% 150 15002 150-Dividend paid to non-resident companies 7.50% 150 150-Dividend paid to others 150 7.50% Dividend 1500315004 150-Dividend at reduced rate @ 7.5% 150 7.50% Debt 15101 151(1)(a)-Profit on debt paid or credited to a resident person on schemes of National Savings and P.O Saving Accounts 10% 151(1)(a) 15102 Profit on debt paid or credited to a resident person on account of deposit with a banking company or financial institution 10% 151(1)(b) on 15103 Profit on debt paid or credited to a resident person on secirities of Federal or Provincial Government or a local authority 10% 151(1)(c) Profit on debt paid or credited to a resident person on any bond, certificate, debenture, security or any other instrument by a banking company, Profit 15104 financial institution, company incorporated under Companies Ordinance, 1984, or a finance society 10% 151(1)(d) Non- 15201 Payment to non-resident person on account of royalty or fee for technical services 15% 152(1) to Payment to a non-resident on account of a contract or sub-contract under a construction, assembly or installation project in Pakistan, including a 15202 contract for supply of supervisory activities in relation to such project (Div.II, Pt.III, 1st Sch.) 6% 152(1A)(a) Resident 15203 Payment to a non-resident on account of any other contract for construction or services rendered relating thereto (Div.II, Pt.III, 1st Sch.) 6% 152(1A)(b) 15204 Payment to a non-resident person on account of contract for advertisement services rendered by TV Satellite Channels (Div.II, Pt.III, 1st Sch.) 6% 152(1A)(c) Payments 15205 Payment to a non-resident person or any other account including profit on debt but excluding those covered U/s 152(3) 30% 152(2) 15301 Payment to a resident person or a PE of a non-resident on account of sale of goods @ 1.5% 1.50% 153(1)(a) of and 1530215303 PaymentPayment toto aa residentresident personperson oror aa PEPE ofof aa non-residentnon-resident onon accountaccount ofof saleservicesof goodsrendered@ 3.5%or provided 3.50% 153(1)(b)153(1)(a) Payment to a resident person or a PE of a non-resident on account of execution of a contract, other than contract for sale of goods or services rendered or provided 15304 6% 153(1)(c) Payments Goods Services Payment to a resident person or a PE of a non-resident on account of rendering of or providing of services of stitching, dyeing, printing, embrioder y 15305 washing, sizing and weaving 0.50% 153(1A) 15401 Realization of proceeds of exports of goods @ 1%, ( Div.IV Pt. III, 1st Sch.) 1% 154(1) 15402 Realization of proceeds of exports of goods @ 1%, (Div. IV, Pt.III, 1st Sch.) 1% 154(1) 15403 Realization of proceeds of exports of goods @ 1%, (Div. IV, Pt. III, 1st Sch.) 1% 154(1) 15404 Realization of proceeds of exports of goods @ 1%, (Div. IV, Pt. III, 1st Sch.) 1% 154(1) Exports 15405 Realization of indenting commission in foreign exchange on imports @ 5% (Div. IV, Pt. III, 1st Sch.) 5% 154(2) 15406 Realization of indenting commission in foreign exchange on exports @ applicable to exports (Div.IV, Pt.III, 1st Sch.) 1% 154(2) 15407 Realization of proceeds of sale of goods to an exporter under an inland back-to-back letter of credit etc. (Div. IV, Pt.III, 1st Sch.) 1% 154(3) 15408 Export of goods by an industrial undertaking located in an export processing zone (Div.IV, Pt. III, 1st Sch.) 1% 154(3A) 15409 Payment against sale of goods by an indirect exporter to a direct exporter or an export house registered under DTRE Rules, 2001 1% 154(3B) 15501 Payment of rent of immovable property Various slab rates slab rates 155 Property Income & 15601 Payment of prize on prize bond @ 10% 156 10% Prizes Winnings 15602 Payment of winnings from a raffle, lottery, cross-word puzzle or quiz; and prize offered by companies for promotion of sale @ 20% 156 20% 15603 Payment of commission on petroleum products of petrol pump operators @ 10% 10% 156A 15604 Withdrawal from pension fund as per section 12(6) Average Rate of Tax of preceding 03 Years 156B Cash 23101 Cash withdrawal from banks 0.30% 231A Withdrawal Purchase Motorof Cars 23102 Purchase of Motor Cars Slab Rates Div III Part IV first schedule 231(B) and 23301 Payment of brokerage or commission @ 10% 10% 233 Borkerage Commission 23302 Payment of commission (advertising agents) @ 5% 5% 233 23303 On value of shares purchased or sold by a member of a stock exchange in lieu of its commission income @ 0.01% 0.01% 233A(1)(a)/(b) Stock 23304 On value of shares traded by a person through a member of a stock exchange @ 0.01% 0.01% 233A(1)(c) Exchange 23305 On financing of CFS (badla) in shares business @ 10% 10% 233A(1)(d) 23401 Alongwith motor vehicle tax - Goods Transport Vehicles as per Division III Part-IV of First Schedule 234 Slab 23402 Alongwith motor vehicle tax - Passanger Transport Vehicles as per Division III Part-IV of First Schedule Rates 234 Transport Business 23403 Alongwith motor vehicle tax - Other Private Vehicles as per Division III Part-IV of First Schedule 234 CNG 23405 CNG Station 4% 234(A) Stations Alongwith electricity consumption bills Slab Rates Div IV Part 23501 10% 235 IV of first schedule Electricty Consumption Users Telephone subscribers (other than Mobile Phone subscribers) Where bill is above one thousand 10% 236 Phone 2360123602 Mobile phone subscribers including pre-paid card users 10% 236

3. This notification shall take immediate effect. [1(39) DG.WHT/2008] (IRFAN NADEEM) Member (Direct Taxes)/ Additional Secretary