Compendium Of Tax Laws In Pakistan (containing bare-acts only) :

Parliament makes substantive legislation to impose different taxes in the light of cannons of
taxation. Many tax laws and rules are presently imposed in Pakistan, a few laws relating it are
being discussed below:

Income Tax Ordinance 2001

Income Tax Rule 2002
Sales Tax Act 1990
Federal Excise Act 2005
Punjab Revenue Authority Act 2012
Punjab Sales Tax on Services Act 2012

Income Tax Ordinance,2001 :

The Ordinance is a Central statute and is, therefore, applicable to the whole of Pakistan.
It’s a consolidation and amending Law consists of 13 chapters, 241 sections and 9
schedules. It was promulgated on Sep 13th 2001 and became inactive on 1st of July 2002.The
Ordinance is a Central statute and is, therefore, applicable to the whole of Pakistan. In this
Ordinance there is

Heavy Reliance (53%) on Withholding Tax

 Progressive Personal Income Tax (max rate: 20-25%)
 Corporate Income Tax (35% rate)
 Universal Self-Assessment Scheme

Distribution of Revenues :
According to “Acts Ordinances President's Orders and
Regulations May 10, 2010”:
Short title and commencement;
This order may be called “Distribution of Revenues and Grant –In-Aid-
Order,2010”.

Distribution of revenue:
According to distribution of revenue the divisible pool taxes
are collected by Federal Government in that year, namely,
1) Taxes on income.
 2) Wealth tax.
3) Capital tax value.
4) taxes on sales and purchase goods imported, exported;
produced, manufactured or consumed.
5) Export duties on cotton.
6) Customs duty.
7) Federal exercise duties excluding the exercise duty on gas
charged at Well head. and
8) Any other tax which may be levied by the federal government.

4. Allocation of shares to Provincial Government:

1, The indicators and their respective weights as agreed
upon are;
(a) Population 82.0%
(b) Poverty of Backwardness 10.3%
(c) Revenue collection of generation 5.0%
(d) Inverse population density 2.7%

2, The sum of assigned to the Provincial Government under

Article 3 shall be distribute amongst the province on the
basis of percentage specified against each;

Balochistan 9.09%
KPK 14.62%
Punjab 51.47%
Sindh 24.55%
_______
Total 100.00%