Act V of 1973 · 3 pages
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THE CHEMICAL FERTILIZERS (DEVELOPMENT SURCHARGE)
ACT, 1973
CONTENTS
1. Short title, extent and commencement
2. Definitions
3. Levy of development surcharge
4. Power to grant exemption from payment, authorise refund and procedure for collection and
refund of surcharge
5. Maximum sale price
6. Allowance to be made for development surcharge for purposes of income-tax
7. Power to make rules
8. Delegation of Powers
9. [Omitted]
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THE CHEMICAL FERTILIZERS (DEVELOPMENT SURCHARGE)
ACT, 1973
Act No. XLI OF 1973
[27th June, 1973]
An Act to provide for the levy and collection of a development surcharge on chemical
fertilizers and for matters connected therewith.
WHEREAS it is expedient to provide for the levy and collection of a development
surcharge on chemical fertilizers and for matters connected therewith;
It is hereby enacted as follows:—
1. Short title, extent and commencement.—(1) This Act may be called the Chemical
Fertilizers (Development Surcharge) Act, 1973.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions. —In this Act, unless there is anything repugnant in the subject or context,—
(a) “company” means any company engaged in the business of manufacturing
chemical fertilizers ;
(b) “development surcharge” means the surcharge payable under section 3;
(c) “differential margin”, in relation to a chemical fertilizer, means the amount
by which the maximum sale price of that fertilizer exceeds its maximum
retail selling price as in force immediately before the commencement of the
Chemical Fertilizers (Development Surcharge) Ordinance, 1973 (VI of 1973),
hereinafter referred to as the said Ordinance, or, as the case may be, the
amount by which its maximum sale price exceeds the aggregate of its ex-
factory price and the incidental charges;
(d) “ex-factory price”, in relation to a chemical fertilizer produced by a factory,
means such ex-factory price of that fertilizer as the Federal Government may,
by notification in the official Gazette, declare to be the ex-factory price
having regard to the cost of production of such factory;
(e) “incidental charges” means the aggregate of the freight by rail or road and
such distribution costs as the Federal Government may, by notification in the
official Gazette, fix;
(f) “landed cost”, in relation to any chemical fertilizer, means the aggregate of
c.i.f. value, duties, taxes, fees and other charges payable on or after the import
of that fertilizer into Pakistan;
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(g) “maximum sale price”, in relation to a chemical fertilizer, means such retail
price of that fertilizer, not exceeding 125 per cent, of its landed cost, as the
Federal Government may, by notification in the official Gazette, declare to be
the maximum sale price.
3. Levy of development surcharge.—(1) Subject to the provisions of this Act, every
company shall pay to the Federal Government a development surcharge equal to the differential
margin in respect of a chemical fertilizer produced by it, including a chemical fertilizer so produced
and held in stock immediately before the commencement of the 1[said Ordinance].
(2) Subject as aforesaid, every stockist shall pay to the Federal Government a development
surcharge equal to the differential margin in respect of a chemical fertilizer held by him in stock
immediately before commencement of the said Ordinance.
4. Power to grant exemption from payment, authorise refund and procedure for
collection and refund of surcharge.—(1) Subject to such conditions, limitations or restrictions as it
may think fit to impose, the Federal Government may, in such general cases as it may prescribe by
rules or in particular cases by special order, exempt a company from the payment of the
development surcharge in respect of all or any of the fertilizers or authorise the refund in whole or in
part of the development surcharge paid by a company.
(2) Subject to any rules made under this Act, the development surcharge shall be collected in
the same manner as a duty of excise leviable under the Central Excises and Salt Act, 1944 (I of
1944), is collected.
5. Maximum sale price.—(1) Notwithstanding anything contained in any other law, no
company or stockist shall sell any chemical fertilizer at a price higher than the maximum sale price.
(2) A contravention of sub-section (1) shall be deemed to be a contravention of an order made
under the 1[Price Control and Prevention of Profiteering and Hoarding Act, 1977 (XXXIX of 1977)],
and all the provisions of that Act shall have effect accordingly.
6. Allowance to be made for development surcharge for purposes of income-tax.—
Notwithstanding anything contained in any other law, the amount of the development surcharge paid
by a company or stockist under section 3 shall be an expenditure for which allowance is to be made
in computing profits or gains under 1[subsection (1) of section 23 of the Income tax Ordinance
(XXXI of 1979)].
7. Power to make rules.—The Federal Government may, by notification in the official
Gazette, make rules for carrying out the purposes of this Act.
8. Delegation of Powers.—The Federal Government may, by notification in the official
Gazette, direct that all or any of its powers under this Act or the rules made thereunder shall, in such
circumstances and under such conditions, if any, as may be specified in the direction, be exercised
also by an officer or authority subordinate to the Federal Government.
9. 1 [Omitted]
RGN Uploaded on 28.2.2024
1
Subs. and omitted by the Federal Laws (Revision and Declaration) Ordinance 1981 (XXVII of 1981). s. 3 and Sch. II.
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Source: Pakistan Code, Ministry of Law and Justice (pakistancode.gov.pk). Text on this page is reproduced verbatim from the official PDF and is provided for reference only. For the authoritative version, always consult the source document or a current reported edition.
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