Chemical Fertilizers (Development Surcharge) Act, 1973

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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 a nd commencement.—(1) This A ct m ay 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 b e, the 
amount by whi ch 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 develo pment 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 pr oduced 
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 s pecial 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 A ct, 1944 ( I of 
1944), is collected. 
 
5. Maximum sale  price.—(1) Notwithstanding anything contained in any oth er 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. D elegation of Powers.—The Federal Government m ay, 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 
 
1Subs. and omitted by the Federal Laws (Revision and Declaration) Ordinance 1981 (XXVII of 1981). s. 3 and Sch. II.