KARACHI: The Pak Rupee gained 17 paisas against US dollar in mid-day trade on improved inflows.
The dollar is being traded at Rs140.10 in interbank foreign exchange market. The foreign currency market ended Rs140.27 in last day trading.
Currency experts said that due to IMF loan program there would be pressure on the local currency in coming days. However, they said that the narrowing trade deficit and shrinking current account deficit could help the local currency to maintain levels.
KARACHI: State Bank of Pakistan (SBP) will announce Monetary Policy for the next two months on Friday, March 29, 2019, a statement said on Wednesday.
In the last monetary policy announcement, the central bank increased the policy rate by 25 basis points to 10.25 percent effective from February 01, 2019.
The monetary policy committee (MPC) decided to increase the rate on the basis of: (i) the fiscal deficit is yet to show signs of consolidation despite a reduction in PSDP spending; (ii) although a gradual improvement in current account deficit is visible, it remains high; (iii) a marked shift in the pattern of government borrowing from scheduled banks to SBP entails inflationary concerns; and (iv) even as stabilization measures gradually work through the economy, underlying inflationary pressures persist.
Analysts at Arif Habib Limited said that the SBP to increase policy rate by 75 basis points to 11.00 percent (Discount rate 11.50 percent) in the upcoming monetary policy statement.
This might be the last rate hike before Pakistan enters the International Monetary Fund (IMF) program whereas inflation will remain moderate after making its peak in the ongoing month.
The monetary tightening is expected on the back of i) rising inflationary pressure due to recovery in prices of petroleum products and essential food items, ii) mounting Fiscal deficit despite sharp cut in PSDP and rationalization of tariffs and duties, and iii) narrowing real interest rate as it declined to 1.6 percent compared to last four year average of 2.85 percent.
KARACHI: Any income representing any payment received by way of gratuity or commutation of pension by an employee on his retirement is exempted from income tax.
The Second Schedule of Income Tax Ordinance, 2001 explained the exemption from total income.
Any income representing any payment received by way of gratuity or commutation of pension by an employee on his retirement or, in the event of his death, by his heirs as does not exceed –
(i) in the case of an employee of the Government, a Local Government, a statutory body or corporation established by any law for the time being in force, the amount receivable in accordance with the rules and conditions of the employee’s services;
(ii) any amount receivable from any gratuity fund approved by the Commissioner in accordance with the rules in Part III of the Sixth Schedule;
(iii) in the case of any other employee, the amount not exceeding three hundred thousand rupees receivable under any scheme applicable to all employees of the employer and approved by the Board for the purposes of this sub-clause; and
(iv) in the case of any employee to whom sub-clause (i), (ii) and (iii) do not apply, fifty per cent of the amount receivable or seventy-five thousand rupees, whichever is the less:
Provided that nothing in this sub-clause shall apply –
(a) to any payment which is not received in Pakistan;
(b) to any payment received from a company by a director of such company who is not a regular employee of such company;
(c) to any payment received by an employee who is not a resident individual; and to any gratuity received by an employee who has already received any gratuity from the same or any other employer.
KARACHI: Federal Investigation Agency (FIA) has summoned leading fashion designers in inquiry related to losses to PIA in Premier Service Operations.
The FIA summoned the fashion designers in connection that PIA had acquired their services for design of ‘PIA Premier Service Uniform’ for its cabin crew.
The agency said the designers were acquainted with the facts of the enquiry. Therefore, the designers have been asked to record their statements on April 03 and 04.
The designers are included Noman Ansari, Yasmin Sheikh, Saniya Maskatiya and Pinto Kazmi.
Sources said that the PIA acquired services of these designers in 2015. The PIA organized a fashion show abroad for the uniforms designed by such designers.
The sources said that the PIA issued large number for free tickets to members of a local television channel.
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has decided to finalize draft proposals for new tax amnesty scheme.
FPCCI President Engr. Daroo Khan Achakzai called a meeting of stakeholders on Tuesday to discuss the proposals for New Tax Amnesty Scheme 2019 at Federation House, Karachi, Regional office Lahore and Capital Office Islamabad via video link.
The meeting decided that a committee will be formed consisting of experts which will be headed by President FPCCI for the finalization of draft of new amnesty scheme.
The meeting was attended by S. M. Muneer, former President FPCCI, Iftikhar Ali Malik, Sr. Vice President SAARC-CCI & Former President FPCCI, Dr. Mirza Ikhtair Baig, Sr. Vice President FPCCI, all Vice Presidents of FPCCI and the representatives of different chambers and associations.
While welcoming the participants of meeting, Engr. Daroo Khan Achakzai informed the house about the outcomes of last amnesty schemes and focused on the need of new amnesty scheme for the documentation of economy and enhancement of tax revenue.
He also highlighted his discussion with the Prime Minister of Pakistan who showed his desire to launch another amnesty scheme and advised President FPCCI to formulate recommendations in consultation with stakeholders with the aim to document the economy by declaring of foreign and domestic assets.
In his remarks, Iftikhar Ali Malik emphasized to create awareness about converting the black money into white money, to increase the confidence of tax payer, incentives for the SMEs, exports warehouses, agriculture sector, removal of piracy, mis-declaration and smuggling.
S. M. Muneer underlined the need of revival of last amnesty scheme with some necessary amendments announced in April 2018 for three months.
Dr. Mirza Ikhtair Baig, Sr. Vice President FPCCI also stressed on the same tax rates of last amnesty scheme 2018 and continuation of Foreign Exchange Reforms Act which allowed opening of account, transactions and remittance facility in foreign currency.
During the meeting, the stakeholders suggested that the new scheme should be based on same rules, regulation and tax rates 2 percent, 3 percent and 5 percent announced in last amnesty scheme in 2018.
The stakeholders also stressed on the strict monitoring of tax collection system, measures of discretionary power to conduct audit of tax filers, removal of harassment and ease of documentation.
They argued that the tax collection system in Pakistan is very complicated which needs to be reviewed as per global requirement.
Moreover, the tax amnesty scheme should also boost industrialization and create new investment in other than real estate sector of economy and improve cost/ease of doing business.
The house also advocated imposing of taxes on agriculture and other sectors which are currently not under tax net instead of putting extra burden on minuscule number of existing tax payers.
They also suggested to announce incentives for filer/ taxpayers and should announce clean chit if taxpayers pay 2 percent or 5 percent additional tax and this scheme should be for three to five years.
KARACHI: Federal Board of Revenue (FBR) has frozen around 4,000 bank accounts of tax defaulters in a major crackdown, according to media reports on Tuesday.
These bank accounts have been attached during last three months to recover outstanding amount from tax defaulters.
In the major action against tax defaulters the FBR recovered around Rs8.2 billion through various means provided under income tax laws.
Besides freezing bank accounts, the FBR also attached 78 immovable properties and 46 vehicles for the recovery.
Further, about nine people were arrested in this recovery drive. The arrests have been made each in Faisalabad and Peshawar. Further, warrants for arrest in two cases have been issued.
ISLAMABAD: Finance Minister of Pakistan Asad Umar met the IMF Mission Chief Ernesto Ramirez Rigo in Islamabad, on Tuesday.
The minister and the Mission Chief discussed all issues including fiscal, monetary, structural reforms and energy sector, a statement said.
Asad Umar briefed Ramirez Rigo about the steps taken by the government for improving the economy of the country.
The minister informed that the structural reforms and other economic initiatives introduced by the government were yielding desired results.
The minister said that the government would continue to address the macroeconomic imbalances and would take necessary corrective measures in this regard.
ISLAMABAD: The government has decided to end the open sky policy in order to prevent losses to national flag carrier i.e. Pakistan International Airlines (PIA).
Federal Minster for Information and Broadcasting Chaudhry Fawad Hussain at a press conference after the federal cabinet meeting on Tuesday said that the government had decided to end the country’s open sky policy which proved to be disastrous for PIA.
Most of the profitable routes were given to international airlines which led to huge loss for PIA, he said.
All agreements with international airlines would be reviewed, he added.
He said that the cabinet approved civil aviation policy to pro-actively promote tourism and give boost to aviation industry in the country.
The decisions made in the cabinet meeting, chaired by Prime Minister Imran Khan.
He said traveling to the tourist resorts of Pakistan will be facilitated by reducing travel expenditures.
Fawad said facilities, including reduction in traveling expenses and cuts in taxes, worth Rs3.8 billion would be offered to promote tourism and aviation sector.
He said the cabinet also discussed to start helicopter and 40-seat plane service to the tourist sites in the country including Gilgit-Baltistan and Swat.
The purpose for this initiative, was to provide benefits to local aviation industry,” he said, adding that it was necessary to improve travel facilities to the country’s tourist locations to attract elite tourism.
The minister announced that passenger airlines in Pakistan will be allowed to import aeroplanes which are 18-years-old compared to the previous limit of 12 years while cargo planes up to 30 years old, could be imported.
New recommendations with regards to aviation also included charges on flight kitchens being abolished, and a recommendation to reduce taxes on domestic routes, he added.
The minister also announced a special initiative by CAA of paying up to Rs 400,000 in fees for women to attract them for becoming pilots.
ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) and Ministry of Climate Change (MoCC) have signed an agreement to support the Clean Green Pakistan Movement.
This collaboration will enable to tackle issues of low forest cover and poor cleanliness in urban & rural areas of Pakistan, said a statement on Tuesday.
Under this MoU, PTCL and MoCC agreed upon afforestation of 200,000 trees across PTCL sites in the next five years.
The MoU was signed by Syed Mazhar Hussain, Chief Human Resource Officer, PTCL and Babar Hayat Tarar, Additional Secretary, Ministry of Climate Change, followed by plantation of saplings at PTCL HQ.
Furthermore, PTCL will initiate cleanliness drives in Karachi, Lahore and Islamabad to assist the solid waste management.
In the initial phase, the company pledges to ban non-recyclable plastics in PTCL HQ in Islamabad.
The company shall also arrange clean drinking water for its employees in connection with its resolve to implement health care and better environment to the workforce.
Moreover, PTCL will also install filtration units to provide clean drinking water for the general public.
On the occasion, Ms. Zartaj Gul Wazir, State Minister for Climate Change, said, “We are glad to collaborate with PTCL on Clean Green Pakistan Movement, which is to create awareness across the country regarding the importance of environmental preservation. PTCL has initiated a comprehensive awareness campaign on converting customers from paper bill to eBilling, which is a step in the right direction. As a nation, we need to come together to tackle issues like pollution and low forest cover. Under the Prime Minister Imran Khan’s vision of clean and green Pakistan, partnerships like this are going to pave the way in achieving our objective.”
On the occasion, Rashid Khan, President and CEO, PTCL, said, “As a national company, it is our responsibility to support Clean Green Pakistan Movement. We are happy to collaborate with Ministry of Climate Change to create awareness and conduct trainings on environmental preservation. To promote this initiative, our teams across Pakistan will be executing afforestation campaigns.”
In the past, PTCL has partnered with WWF for plantation of200,000 mangrove seeds in Balochistan, as part of the conservation organizations nationwide tree plantation campaign, called ‘Rung Do’. PTCL HQ is also Green Office certified by WWF.
Recently, the company has also taken steps to ensure that numerous avenues are open for customers to opt for eBilling like PTCL website, Touch App and helpline 1218, to go paperless and save trees.
PTCL is constantly contributing towards saving the environment and a greener Pakistan.
ISLAMABAD – In a significant development, the Federal Board of Revenue (FBR) announced the promotions of two distinguished officers from the Inland Revenue Service (IRS) to the coveted BS-22 rank.
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