ISLAMABAD (June 23 2009): Federal Secretary Finance, Revenue Division, Salman Siddique said on Monday that the commercial importers would have to pay 4 percent withholding tax at the import stage. On the conclusion of winding up speech by Minister of State for Finance Hina Rabbani Khar at Parliament, Secretary Finance told Business Recorder that the withholding tax has been reduced from 4% to 3% for industrial imports to provide relief to manufacturers. This involves a relief of over Rs 5 billion to the manufacturing sector. Responding to a query, he said that the commercial importers would continue to pay 4 percent withholding tax at the import stage. The current relief is only for industrial importers, he added. According to the amended Finance Bill (2009-2010) issued on Monday, a proviso is being added in section 15 of the Customs Act, 1969 so that offences relating to goods imported or exported in violation of intellectual property rights under this section shall be adjudicated by appropriate customs officers. Customs Act, 1969 provides for surcharge on deferred payments. Presently, different rates of surcharge are fixed at 14% per annum, 1% per month and 1 1/2 % per month. This rate is being rationalised and linked with KIBOR (Karachi Interbank Offered rate) and prescribed at KIBOR plus three per cent. The Collector of customs may, in exceptional circumstances, after recording reasons in writing suspend the use of unique user identifier of any person forthwith on receipt of any complaint or information about violation of provisions of Customs Act. Under section 25 of the "Customs Act, 1969, presently no time limit is fixed for filing of review application before Director General (Valuation). Amendment is being made to prescribe time limited of thirty days for filing review application. Section 33 of the "Customs Act, 1969 is being amended so that no refund of duty/taxes shall be allowed of sanctioning authority is satisfied that incidence of customs-duty and other levies has been passed on to the buyer or consumer. Duty on pigment thickener (PCT code 3906.9030) was reduced to 0% in the budget 2008-09. Subsequently it was reported that another such chemical, namely acrylic thickener (PCT code 3906.9040) chargeable to 10% duty is being misdeclared as pigment thickener. To handle this problem, duty @ 10% was imposed on pigment thickener to equate with acrylic thickener. All Pakistan Textile Processing Association has again requested to withdraw duty on pigment thickener. In order to check misdeclaration and reduce delays on account of classification disputes duty rate on both these items has been reduced to 0% in tariff. Disperse dyes (PCT code 3204.1100) are one of the major raw material of textile industry. In view of representation by All Pakistan Textile Processing Association and to reduce the manufacturing cost of this important sector, duty rate on these dyes is reduced from 15% to 10%. All Pakistan Newspaper Society (APNS) had made a representation before Advisor to Prime Minister on Finance and Revenue to provide taxation relief to the newspaper industry. Accordingly, 16% sales tax levied on import of newsprint paper has been exempted and in lieu thereof only 5% customs duty has been levied thereby providing a relief of approximately Rs 550 million to this industry. According to the amended Finance Bill (2009-2010), deletion of sub-clause (4) of clause 5 and sub-clause (6) of clause 7 will provide relief to taxpayers as they will not be required to indicate NTN or CNIC of their buyers on tax invoices. The name of Collector is being omitted from section 38 of the Sales Tax Act, 1990 to avoid abuse of this power by field formations. The certain other clauses about procedural changes are being withdrawn as Senate Committee on Finance recommended that they are not part of Money Bill. As per amended Finance Bill (2009-2010), the firm of chartered accountants, as appointed by the Board to conduct audit under section177, for any tax year, may with the prior approval of the Commissioner concerned, enter the business premises of a taxpayer, ed for audit, to obtain any information, require production of any record, on which the required information is stored and examine it within such premises; and such firm may if specifically delegated by the commissioner, also exercise the specified powers. As per amended Seventh Schedule of Income Tax Ordinance 2001, Provisions for advances and off balance sheet items shall be allowed upto a maximum of 1% of total advances; provided a certificate from the external auditor is furnished by the banking company to the effect that such provisions are based upon and are in line with the Prudential Regulations. Provisioning in excess of 1% would not be allowed to be carried over to succeeding years: Provided that if provisioning is less than 15 of the advances, then actual provisioning for the year shall be allowed. The amount of "bad debts" classified as "sub-standard" under the Prudential Regulations issued by the State Bank of Pakistan shall not be allowed as expense. where any addition made under sub-rule (d) is reclassified by the taxpayer under Prudential Regulations issued by the SBP, as \'doubtful\' or \'loss\', provision of sub-rule ( c) shall mutatis mutandis apply in computing the provision for that tax year. Where any addition made under sub-rule (d) is reclassified by the taxpayer in a subsequent year as \'recoverable\', a deduction shall be allowed in computing the income for that tax year." amended Seventh Schedule of Income Tax Ordinance added.