Federal Budget 2014

Federal Budget 2014


This memorandum gives an overview of Pakistan economy and significant amendments proposed
by the Finance Bill 2014 relating to Income Tax, Sales Tax, Federal Excise Duty and Customs Duty.
For considering the precise impact of a particular change, reference should be made to the specific
wordings in the relevant statute. All changes proposed through the Finance Bill 2014 are effective July 1, 2014.
The proposals introduced in the Bill are to be approved by the National Assembly and should not generally be acted upon without obtaining appropriate advice. Our firm will issue a memorandum on Finance Act, 2014 once approved by the National Assembly.

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Provincial Finance Act, 2014

This Memorandum summarises salient features of the Provincial Finance Acts, 2014 passed by
respective Provincial Assemblies. Under the Constitution, Provinces can levy tax inter alia on
rendering of services, disposal and use of immovable properties and agricultural income tax.

This Memorandum contains our views on the revised status of the respective fiscal statutes,
after the enactment of Provincial Finance Acts. All changes made through the Provincial Finance
Acts are effective July 1, 2014. For considering the precise effect of a particular change, it is
advised that reference should be made to the specific wordings in the relevant statute and the
amendments made through the Provincial Finance Acts should be acted upon only after
obtaining appropriate advice.

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Memorandum Federal Budget 2014

The Finance Bill, 2014 was presented in National Assembly on June 3, 2014. Subsequently,

various amendments were proposed by the Finance Minister and were incorporated in the
Finance Bill. National Assembly of Pakistan passed the Finance Act, 2014 on June 21, 2014, and
the same was assented by the President of Pakistan on June 25, 2014.
Through the memorandum dated June 4, 2014, significant amendments proposed in fiscal
statutes by the Finance Bill, presented in the National Assembly on June 3, 2014, were described
in brief.
By way of the notes released by the firm on June 20, 2014, comments were made on further
amendments in Finance Bill proposed by the Finance Minister.
The Act, as now passed by the National Assembly and assented by the President of Pakistan,
represents the amended position of the respective laws as is applicable from July 1, except for
amendments in First and Second Schedules to the Customs Act, 1969 and amendments in Fifth,
Sixth, Eighth and Ninth Schedules to the Sales Tax Act, 1990, which have been made applicable
from June 26, 2014, by virtue of assent of the President of Pakistan to the Finance Act, 2014 on
June 25, 2014.
These notes have been compiled in a manner that the same represent a self-contained document
on the amendments introduced by the Finance Act, 2014.
This memorandum also contains our views on the revised status of the respective fiscal statutes,
after the enactment of the Finance Act, 2014. It is however advised that reference should be
made to the specific wordings in the relevant statute and the amendments made through the
Finance Act, 2014 should be acted upon only after obtaining appropriate advice.
 
PDF download Download Memorandum Federal Budget 2014

Brief on amendments proposed in the Finance Bill, 2014

Through the Finance Bill presented in the National Assembly, amendments are proposed
in various statutes relating to Federal taxes. Subsequently, after the debate in the
National Assembly, the Finance Minister presents government’s views on the matters raised
in the Finance Bill. If amendments in the Finance Bill are proposed, then the same are
forwarded by way of a letter by the Finance Minister to the Speaker National Assembly.
This represents amendments in the Bill already laid before the National Assembly.
The Bill as originally presented, after incorporating the changes proposed in the letter,
represents the government’s final proposals for amendments in the respective fiscal statutes.
If passed by the National Assembly and assented by the President of Pakistan, the amended
Bill will represent Finance Act being the position of law as will be applicable from July 1.
These notes highlight the changes proposed in the Finance Bill, already presented on
June 3, 2014.
These notes and the proposed amendments the Finance Bill 2014 presented by our
memorandum dated June 4, 2014 read with the law at present exhibit the revised status of
the respective fiscal statute.
Exact status of the Finance Act, 2014 will be the form in which the same is passed by the
National Assembly.


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Provincial Budgets 2014 - Khyber Pakhtunkhwa
 

This Memorandum summarises salient features of the provincial budget and the Finance Bill
presented in the Khyber Pakhtunkhwa assembly. Under the Constitution, taxing rights on
rendering of services, disposal and use of immovable properties and agricultural income tax
inter alia are with the provinces. All changes proposed through the Provincial Bill are effective
July 1, 2014 subject to approval by the provincial assembly.
Major receipts of the province are from sales tax on rendering of services. Stamp duties,
registration fees, property tax and agricultural income tax also inter alia fall within the ambit of
provincial fiscal legislation.
The proposals in the Provincial Bill are to be approved by the assembly and should not generally
be acted upon without obtaining appropriate advice.


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Provincial Budgets 2014 - Punjab & Sindh

This Memorandum summarises salient features of the provincial budgets and the Finance Bills
presented in the provincial assemblies of Punjab and Sindh. Under the Constitution, taxing
rights on rendering of services, disposal and use of immovable properties and agricultural
income tax inter alia are with the provinces. All changes proposed through the Provincial Bills
are effective July 1, 2014 subject to approval by the provincial assemblies.
Major receipts of the provinces are from sales tax on rendering of services. Stamp duties,
registration fees, motor vehicle tax, property tax and agricultural income tax also inter alia fall
within the ambit of provincial fiscal legislation.
The proposals in the Provincial Bills are to be approved by the respective assemblies and should
not generally be acted upon without obtaining appropriate advice.

PDF download Download Provincial Budgets 2014 -Punjab & Sindh (233 kb)