CHAPTER II
Constitution of Workers’ Welfare Fund
3. Constitution
of Workers’ Welfare Fund.-- (1) There shall be constituted for the purposes of
this Ordinance a Fund to be called the Workers’ Welfare Fund.
(2) The Fund shall consist of--
(a) an initial contribution of ten crores of rupees to be made by the Federal
Government;
(b) such moneys as may, from time to time, be paid by the industrial establishments under
section 4 and section 4-A;
(bb) the amount transferred to the Fund from time to time, under
clause (d) of paragraph 4 of the scheme set out in the Schedule to the Companies Profits
(Workers’ Participation) Act, 1968 (XII of 1968);
(c) voluntary contributions in the shape of money or building, land or other property made
to it form time to time by any Government or by any person; ***
(d) income from the investments made and properties and assets acquired from out of the
Fund; and
(c) proceeds of loans raised by the Government Body.
4. Mode of payment by, and recovery from, industrial establishments.--
(1) Every Industrial establishment, the total income of which in any year of account
commencing on or after the date specified by the Federal Government
in the official Gazette in this behalf is not leas than one lakh of rupees shall pay to
the Fund in respect of that year a sum equal to two per cent of so much of its total
income as is assessable under the Ordinance or would have been so
assessable but for the exemption made by section 48 thereof.
(2) Every industrial establishment which is liable under sub-section (1) shall pay the
amount due from it to the Income tax Officer having jurisdiction over the industrial
establishment for purposes of the Ordinance.
(3) The industrial establishment shall, on or before the date on which it is required to
furnish a return of income under section 55 of the Ordinance, pay
the amount due form it under sub-section (1) calculated with reference to the total income
reported in the said return.
(4) At the time of making an assessment under the Ordinance, or as
soon thereafter as may be, the Income-tax Officer shall, by order in writing, determine
the amount due from industrial establishment under sub-section (1), if any, on the basis
of the income so assessed after taking into account the amount paid by the industrial
establishment under sub-section (3) in respect of the year and the industrial
establishment shall pay the amount so determined on or before the date specified in the
order.
(5) Any change by way of enhancement or reduction in the assessed income subsequent to the
assessment made under 11[the Ordinance] shall be given effect to by adjustment
of the amount due under sub-section (1).
(6) Any amount paid by an industrial establishment under sub-section (3) which is found,
on the basis of an order in appeal or revision under the Ordinance,
to have been paid in excess shall be refunded to it by the Income-tax Officer.
(7) The payment made by an industrial establishment to the Fund under sub-section (1)
shall be treated as an expenditure for purposes of assessment of income-tax.
(8) Where any industrial establishment fails to pay the amount due from it as required
under this section, it shall, without prejudice to any other liability to which it may be
subject under this Ordinance or any other law, be liable to pay an additional amount equal
to eight per cent per annum of the amount due form it from the date on which it was
originally payable to the date on which it is paid.
(9) The provisions of the Ordinance, the relating to the mode and
time of recovery of the income-tax livable under the Ordinance shall, so far as may be,
apply to the recovery of the amount due under sub-section (1).
Note.-- Every industrial establishment whose total income in a year is not leas than one
lakh of rupees must pay to the Fund a sum of two per cent of so much of its total income
as is assessable under the Income-tax Ordinance or would have been so assessable if the
exemption allowed by section 48 of the Income Tax Ordinance had not been permissible.
Section -48 concerns tax holiday for new industries.
Payment of two per cent assessable income is to be made at the time or before the filing
of income-tax return under section 55 of the Income-tax Ordinance. Any excess or shortage
as a result of actual assessment by the Income-tax Officer is subject to adjustment.
4-A. Payment of further amount.-- (1) Every
industrial establishment referred to in sub-section (1) of section 4 shall, in addition to
the amount payable by it under that sub-section in respect of any year of account, pay
such amount as the Federal Government may determine on the
recommendations of a committee appointed under sub-section (2), thereafter in this section
referred to as the committee.
(2) For the purposes of sub-section (1), the Provincial Government may appoint one or more
committees in the Province and, where it appoints more than one committee, shall specify
the area or class of industrial establishments in relation to which each such committee
shall perform its functions.
(3) A committee appointed under sub-section (2) shall consist of an officer of the
Provincial Government who shall be its Chairman and not more than five other members to be
appointed by the Provincial Government of whom--
(a) not less than two shall be appointed from amongst the employers in the Province, or,
as the case may be, in the area or class of industrial establishments in relation to which
the committee is to perform its functions; and
(b) not less than two shall be appointed from amongst the workers in the Province or, as
the case may be, in the area or class of industrial establishments in relation to which
the committee is to perform functions.
(4) The Committee shall examine the financial and other circumstances of each of the
industrial establishments and make recommendations as to the further amount, if any, to be
paid by such establishment in addition to the amount payable by it under sub-section (1)
of section 4.
(5) The committee shall submit its recommendations to the Provincial Government who shall
forward them, together with his own observations, if any, to the Federal
Government.
(6) The committee shall have power to ask any industrial establishment to furnish such
information as it may consider necessary for the performance of its functions under
sub-section (4).
(7) If an industrial establishment fails to furnish the required information under
sub-section (6) the committee shall make its recommendations under sub-section (4) on the
basis of such information as may be available to it.
(8) The provisions of section 4 shall, so far as may be, apply to an amount payable under
sub-section (1), as if it were an amount payable under sub-section (1) of that section.
This section was added by the Labour Laws (Amendment) Ordinance, 1972. An amount in excess
of two per cent of the assessable income as provided in sub-section (1) of section 4 is
payable by an establishment as may be determined by the Federal Government on the
recommendations of a committee. The committee shall consist of a Chairman in the service
of the Provincial Government and not more than five members to be appointed by the
Provincial Government not less than two members from amongst the employers and not less
than two members from amongst the workers in the Province or the area concerned. The
committee shall submit its recommendations to the Provincial Government who shall forward
the same with its own observations to the Federal Government for decision under
sub-section 91) of this section.
5. Liability to be discharged by certain persons.-- Any liability
imposed on an industrial establishment by this Ordinance shall be deemed to be the
liability of the person who is liable to pay income-tax in respect of the income relatable
to such industrial establishment.
6. Purposes to which moneys in the Fund may be applied.-- Moneys
in the Fund shall be applied to--
(a) the financing of projects connected with the establishment of housing estates or
construction of houses for the workers;
(b) the financing of other measures for the welfare of workers;
(c) the meeting of expenditure in respect of the cost of management and administration of
the Fund;
(d) the repayment of loans raised by the Governing Body; and
(e) investment in securities approved by the purpose by the Federal
Government.
