Month: May 2019

FBR updates procedure for mobile device registration

ISLAMABAD: Device Identification Registration and Blocking System (DIRBS) is a system designed to identify non-compliant devices operating on local mobile networks.

It automatically registers compliant devices operating on the mobile networks and eventually blocks non-compliant devices, according to Federal Board of Revenue (FBR).

DIRBS has been launched from December, 2018.

International passengers and Importers are requested to view the following information to confirm the correct procedure for registration of mobile devices.

The FBR said that for further information on the matter kindly visit: Device Verification System – PTA

May 3, 2019
FBR penalizes two BS-18 officers for inefficiency, misconduct

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday imposed penalty upon two officers of Inland Revenue Service (IRS) for inefficiency and misconduct.

In two different notices issued by the FBR the penalty has been imposed on the officers of BS-18.

Case 01:

Disciplinary proceedings were initiated against Asad Munir Malik (IRS/BS-18), on recommendations of CCIR, LTU, Lahore vide letter dated 30.03.2016 on account of his unauthorized absence from duty w.e.f. 07.08.2015.

In the meanwhile, Asad Munir Malik (IRS/BS-18) was transferred from LTU, Lahore to RTO-II, Lahore vide Board’s Notification No.0056-IR-I/2016 dated 08.01.2016.

Vide Board’s letter dated 28.04.2016, CCIR, RTO-II, Lahore was requested to inform whether the officer joined his new place of posting or otherwise. CCIR, RTO-II, Lahore vide letter dated 26.04.2016 informed that the officer has not joined duty at RTO-II, Lahore and requested for initiation of disciplinary action against the officer.

The officer was issued Charge Sheet and Statement of Allegations vide letter dated 20.05.2016 and Jehangir Ahmad, the then Commissioner-IR, RTO-II, Lahore was appointed as Inquiry Officer to conduct inquiry on account of acts of omission and commission by the accused officer constituting “Misconduct”.

Whereas, the inquiry officer submitted inquiry report on 18.09.2018, according to which the charge of “Misconduct” was established against the accused officer.

On the basis of inquiry report, the accused officer was issued Show Cause Notice on 26.02.2019. In response to Show Cause Notice, the accused officer vide letter dated 13.03.2019 requested for opportunity of personal hearing before the Authorized Officer i.e. Member (Admn) which was granted for personal hearing on 23.04.2019.

Having gone through the relevant record, report of inquiry officer and verbal explanation during the course of personal hearing of the accused officer, the Authorized Officer opined that although the charges of “Misconduct” leveled against Asad Munir Malik (IRS/BS-18) stood established and found the officer guilty of the said charge.

However, taking into consideration the domestic issues that officer was facing due to illness of his son and could not attend office and because of indecision by LTU, Lahore on the leave application of the officer, the Authorized Officer, therefore, imposed minor penalty of “Withholding of One (01) Annual Increment without cumulative effect falling on December, 2019” as laid down in Rule 4(1)(a)(ii) of the Government Servant (E&D) Rules, 1973 upon Asad Munir Malik (IRS/BS-18), DCIR, RTO-II, Lahore.

Performance Allowance in respect of Asad Munir Malik (IRS/BS-18) shall be stopped for six months from the date of award of the above minor penalty as provided in Para 7(ii) of the Performance Allowance Guidelines, 2015 and he shall have to appear afresh for restoration of the same.

On conclusion of the proceedings, period of unauthorized absence from duty w.e.f. 07.08.2015 to 02.05.2019 shall be treated as leave of kind due as admissible under the rules.

Asad Munir Malik (IRS/BS-18), Deputy Commissioner-IR, Regional Tax Office-II, Lahore shall have the right to appeal to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 as provided under the relevant Rules.

Case 02:

Disciplinary proceedings were initiated against Muhammad Faisal Chaudhary (IRS/BS-18) on account of “Inefficiency”, “Misconduct” and “Corruption” vide Charge Sheet and Statement of Allegations dated 22.04.2016 and Naveed Ahmed Nawab, the then Commissioner-IR, CRTO, Lahore was appointed as Inquiry Officer to conduct inquiry on account of acts of omission and commission by the accused officer constituting “Inefficiency”, “Misconduct” and “Corruption”.

Whereas, the inquiry officer submitted inquiry report on 20.10.2016. Later on fresh allegations against the officer, on account of unauthorized absence from duty w.e.f 01.10.2016 to 31.10.2016, were raised by the then Chief Commissioner-IR, RTO, Faisalabad vide letter dated 03.11.2016. Therefore, Denovo Inquiry was initiated vide Charge Sheet and Statement of Allegations dated 06.02.2017 and Mr. Muhammad Akram Khan, the then, Chief Commissioner-IR, RTO, Faisalabad was appointed as Inquiry Officer. The inquiry officer submitted inquiry report on 20.09.2017.

Member (Administration), being Authorized Officer perused the record and found that Inquiry Officer placed reliance upon the first inquiry dated 16.02.2015 and notification dated 15.07.2015 and ignored the fact that in first inquiry period of absence was different than the period of absence mentioned in Inquiry dated 22.04.2016 and Denovo Inquiry dated 06.02.2017.

Therefore, the accused officer was issued Show Cause Notice on 14.03.2019. In response, the accused officer submitted his reply to the Show Cause Notice vide letter dated 27.03.2019.

The opportunity of personal hearing before the Authorized Officer i.e. Member (Admn) was granted to the accused officer on 29.04.2019.

Having gone through the relevant record, report of inquiry officer and verbal explanation during the course of personal hearing of the accused officer, the Authorized Officer opined that the charges of “Inefficiency” & “Misconduct” leveled against Muhammad Faisal Chaudhary (IRS/BS-18) stand established on account of unauthorized absence w.e.f 01.10.2016 to 31.10.2016 whereas, the charge of corruption was not proved vide inquiry report dated 20.10.2016 and Denovo inquiry report taking a lenient view of the situation, the Authorized Officer imposed minor penalty of “Censure” as laid down in Rule 4(1)(a)(i) of the Government Servant (E&D) Rules, 1973 upon Muhammad Faisal Chaudhary (IRS/BS-18), Deputy Commissioner-IR, Regional Tax Office-II, Lahore.

Performance Allowance in respect of Muhammad Faisal Chaudhary (IRS/BS-18), shall be stopped for six months from the date of award of the above minor penalty as provided in Para 7(ii) of the Performance Allowance Guidelines, 2015 and he shall have to appear afresh for restoration of the same. On conclusion of the proceedings, period of unauthorized absence from duty w.e.f 01.10.2016 to 31.10.2016 shall be treated as leave of kind due as admissible under the rules.

Muhammad Faisal Chaudhary (IRS/BS-18), Deputy Commissioner-IR, Regional Tax Office-II, Lahore shall have the right to appeal to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 as provided under the relevant Rules.

May 2, 2019
FBR appoints 49 IR Inspectors to strengthen field force

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday appointed 49 inspectors (BS-16) in Inland Revenue in order to strengthen the field force of tax offices.

The FBR appointed the tax officials on the recommendations of Federal Public Service Commission (FPSC).

The FBR also notified place of posting of those officials.

Following is the list of appointed officials and their place of posting:

1. Muhammad Mehboob-ur-Rehman Sabir, Regional Tax Office, Islamabad.

2. Rana Muhammad Awais, Regional Tax Office-II, Lahore.

3. Salman Munir, Corporate Regional Tax Office, Lahore.

4. Muhammad Kashif Iqbal, Regional Tax Office, Multan.

5. Muhammad Abrar Khan, Regional Tax Office, Gujranwala,

6. Zaighum Waqas, Regional Tax Office, Sargodha.

7. Muhammad Arif, Regional Tax Office, Rawalpindi

8. Waqas Zafar Kurar, Regional Tax Office, Gujranwala.

9. Makwdar Ali, Large Taxpayers Unit, Islamabad.

10. Zeeshan Waheed, Regional Tax Office, Rawalpindi.

11. Mohsin Khan, Regional Tax Office, Faisalabad.

12. Waqas Ali, Regional Tax Office, Islamabad.

13. Kamran Taj, Regional Tax Office-II, Karachi.

14. Yasir Sohu, Regional Tax Office-III, Karachi.

15. Shujah ud din, Regional Tax Office, Sialkot.

16. Nabil ur Rehman, Corporate Regional Tax Office, Lahore.

17. Syed Aijaz Ali Shah, Regional Tax Office-III, Karachi.

18. Muhammad Umair Shaikh, Regional Tax Office-II, Karachi.

19. Muhammad Usman, Regional Tax Office, Abbottabad.

20. Syed Zia ur Rehman, Regional Tax Office, Peshawar.

21. Naveed Ahmad, Regional Tax Office, Peshawar.

22. Suhail Afzal, Regional Tax Offce, Hyderabad.

23. Ahmad Baig, Regional Tax Office, Rawalpindi.

24. Muhammad Kashif, Regional tax Office, Islamabad.

25. Muhammad Irfan, Regional tax Office, Peshawar.

26. Yaqub Shah, Regional Tax Office, Peshawar.

27. Obaid Ullah, Regional Tax Office, Quetta.

28. Muhammad Wasif, Regional Tax Office-II, Karachi.

29. Sohaib Zafar, Regional Tax Office-III, Karachi.

30. Muhammad Ali, Regional tax Office, Quetta.

31. Sovia Mukhtar, Corporate Regional Tax Office, Lahore.

32. Maryam Bibi, Regional Tax Office, Rawalpindi.

33. Maryam Yaqoob, Regional Tax Office, Gujranwala.

34. Nazia Ghazal, Regional Tax Office-II, Lahore.

35. Zareena Bashir, Regional Tax Office, Sahiwal.

36. Makhar, Regional Tax Office, Hyderabad.

37. Shamila Rasool, Regional tax Office-II, Lahore.

38. Zakia Shafi, Regional Tax Office, Gujranwala.

39. Zeenat, Regional Tax Office, Hyderabad.

40. Kiran Shahzadi, Corporate Regional Tax Office, Karachi.

41. Rehan Saleem Ahmed, Regional Tax Office, Sialkot.

42. Raza Inderyas, Regional Tax Office, Sargodha.

43. Raynaud Hayat, Regional Tax Office, Faisalabad.

44. Syeda Tabassum, Regional Tax Office-III, Karachi.

45. Suman, Regional Tax Office-II, Karachi.

46. Subhash, Regional Tax Office-III, Karachi.

47. Sadia Bano, Regional Tax Office, Islamabad.

48. Muhammad Adnan, Regional tax Office, Peshawar.

49. Naveed Yousaf, Large Taxpayers Unit, Islamabad.

The FBR directed the officers to join their duties in the office mentioned against their names by May 20, 2019.

May 2, 2019
forex reserves deplete by $251 million to $15.743 billion

KARACHI: The total liquid foreign exchange reserves of the country have depleted by $251 million to $15.743 billion by week ended April 26, 2019 as against $15.994 billion in the previous week, State Bank of Pakistan (SBP) said on Thursday.

The official reserves of the central bank fell by $219 million to $8,805 billion for the week under review as against $9.024 billion by week ended April 19, 2019. The central bank said that the official reserves were declined due to external debt servicing and other official payments.

The foreign exchange reserves with the commercial banks also declined by $33 million to $6.937 billion for the week ended April 26, 2019 as compared with $6.97 billion a week ago.

May 2, 2019
Stock market ends down by 237 points on IMF talks

KARACHI: The stock market ended down by 237 points on Thursday as bearish trend prevailed over IMF talks and forthcoming budget.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,548 points as against 36,784 points showing a decline of 237 points.

Analysts at Arif Habib Limited said that the market remained under pressure after an initial increase of 73 points.

During the session, the benchmark index saw erosion of 237 points, mostly caused by the cement sector due to rumors of no agreement amongst the cement manufacturers on sales quota.

On the other hand, tough asks from IMF and expectations of tougher budget by the end of May maintained an overall bearish sentiment.

Total market volumes dropped drastically as well to 68 million shares as against 111 million traded in the previous session. Besides cements, the food sector also traded in the red zone.

Sectors contributing to the performance include Commercial Banks (-54 points), Food & Personal Care (-38 points), Power Generation (-36 points), OGMCs (-26 points), Chemicals (-12 points), Real Estate (+2 points) and Pharma (+2 points).

Volumes decreased from 68 million shares to 111 million shares (-39 percent DoD). Average traded value also decreased by 46 percent to reach US$ 17.5 million as against US$ 32.6 million.

Stocks that contributed significantly to the volumes include UNITY, FFL, MLCF, PIAA and LOTCHEM which formed 45 percent of total volumes.

Stocks that contributed positively include ENGRO (+8 points), PSMC (+6 points), KTML (+6 points), PPL (+5 points), and SPWL (+4 points). Stocks that contributed negatively include NESTLE (-37 points), HUBC (-32 points), HBL (-18 points), PSO (-16 points) and MEBL (-12 points).

May 2, 2019
Rupee gains 10 paisas in interbank

KARACHI: The Pak Rupee has gained 10 paisas against dollar on Thursday in interbank foreign exchange market owing to inflows of remittances and export receipts.

The rupee ended Rs141.29 to the dollar from previous day’s close of Rs141.39 in interbank foreign exchange market.

The interbank foreign exchange market was initiated in the range of Rs141.37 and 141.39.

The market recorded day high of Rs141.3850 and low of Rs141.27 and closed at Rs141.29.

Currency experts said that the inflows of remittances and export receipts helped the rupee to make gain. However, they said that Pakistan and IMF talks on new loan program could pressure the local currency.

The exchange rate in open market was remained unchanged.

The buying and selling of dollar was recorded at Rs141.70/Rs142.20, the same previous day level, in cash ready market.

May 2, 2019
SBP extends IRFS 16 implementation to June 30

The State Bank of Pakistan (SBP) has granted an extension for the implementation of IFRS 16 for banks, development financial institutions (DFIs), and microfinance banks (MFBs) in Pakistan. The new deadline for compliance has been extended from January 1, 2019, to June 30, 2019.
(more…)

May 2, 2019
Headline inflation increases by 8.8 percent in April 2019

ISLAMABAD: The headline inflation has surged by 8.8 percent on year on year (YoY) in April 2019 as compared to an increase of 9.4 percent in previous month and 3.7 percent in April 2018, said Pakistan Bureau of Statistics (PBS) on Thursday.

The Consumer Price Index (CPI) based inflation on month-on-month basis, it increased by 1.3 percent in April 2019 as compared to an increase of 1.4 percent in the previous month and an increase of 1.8 percent in corresponding month i.e. April 2018.

Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 7.0 percent on (YoY) basis in April 2019 as compared to an increase of 8.5 percent in the previous month and 7.0 percent in April 2018. On (MoM) basis, it increased by 1.0 percent in April 2019 as compared to an increase of 0.5 percent in previous month, and an increase of 2.5 percent in corresponding month of last year i.e. April 2018.

Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 7.2 percent on (YoY) basis in April 2019 as compared to 7.9 percent in the previous month and by 5.0 percent in April 2018. On (MoM) basis, it increased by 0.9 percent in April 2019 as compared to an increase of 0.4 percent in the previous month and an increase of 1.6 percent in corresponding month of last year i.e. April 2018.

The Sensitive Price Indicator (SPI) inflation on YoY basis increased by 9.3 percent in April 2019 as compared to an increase of 8.8 percent a month earlier and a decrease of 0.5 percent in April 2018.

On MoM basis, it increased by 0.9 percent as compared to an increase of 1.6 percent in the previous month and an increase of 0.4 percent in corresponding month of last year i.e. April 2018.

Wholesale Price Index (WPI) inflation on YoY basis increased by 13.8 percent in April 2019 as compared to an increase of 12.6 percent a month earlier and an increase of 4.0 percent in April 2018.

WPI inflation on MoM basis increased by 2.3 percent in April 2019 as compared to an increase of 1.7 percent a month earlier and an increase of 1.3 percent in corresponding month of last year i.e. April 2018.

May 2, 2019
Sales Tax Act 1990: Vast recovery powers of IR officers

KARACHI: The officers of Inland Revenue have vast powers under sales tax laws to recover outstanding amount from taxpayers.

Section 48 of updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR) explained the powers of IR officers for recovery of outstanding amount from taxpayers.

Section 48: Recovery of arrears of tax.

Sub-Section (1): Subject to sub-section (1A), where any amount of tax is due from any person, the officer of Inland Revenue may:-

(a) deduct the amount from any money owing to person from whom such amount is recoverable and which may be at the disposal or in the control of such officer or any officer of Income Tax, Customs or Central Excise Department;

(b) require by a notice in writing any person who holds or may subsequently hold any money for or on account of the person from whom tax may be recoverable to pay to such officer the amount specified in the notice;

(c) stop removal of any goods from the business premises of such person till such time the amount of tax is paid or recovered in full;

(ca) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts;

(d) seal the business premises till such time the amount of tax is paid or- recovered in full;

(e) attach and sell or sell without attachment any movable or immovable property of the registered person from whom tax is due; and

(f) recover such amount by attachment and sale of any moveable or- immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument:

Provided that the Commissioner Inland Revenue or any officer of Inland Revenue shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that ten per cent of the amount of tax due has been paid by the taxpayer.

Sub-Section (1A): If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by any person and which cannot be recovered in the manner prescribed above, the Board or any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the Board.

Sub-Section (2): For the purpose of recovery of tax, penalty or any other demand raised under this Act, the officer of Inland Revenue shall have the same powers which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree.

May 2, 2019
FBR may proceed for sales tax blacklisting of M/s. Hascol Petroleum Limited

KARACHI: Federal Board of Revenue (FBR) will start proceeding to blacklist a major oil marketing company after suspending this week for non-compliance and suppressing sales to evade taxes.

The FBR suspended the sales tax registration of M/s. Hascol Petroleum Limited earlier this week for evading sales tax to the tune of Rs3.9 billion by concealing actual sales.

The status of the company for active sales taxpayer is remained suspended on the official FBR website till 2:50AM on May 02, 2019.

The status of the company can be checked at https://e.fbr.gov.pk/atlsearchutility.aspx?PID=BLcOS/IMzEf3Rn3kVI062g== by inserting company’s sales tax registration number (STRN) 1200271018373 or through National Tax Number (NTN) 1496632-8.

A notice issued on April 29, 2019 for suspending sales tax registration of the OMC said that the company had concealed and evaded sales tax amounting to Rs3.69 billion and further tax amounting to Rs279.84 million.

“Therefore, registered person is being charged with the contravention of Section 3, 3(1A), 6, 22, 23 and 26 of the Sales Tax Act, 1990 and Rs3.97 billion is recoverable Under Section 11(2) of the Sales Tax Act, 1990, along with default surcharge Under Section 34(1) and penalty Under Section 33(5) the Sales Tax Act, 1990,” according to the notice.

The notice also stated: “sales tax registration of above mentioned registered person is hereby suspended with immediate effect till finalization of the proceedings,” it added.

The OMC through a notice to Pakistan Stock Exchange (PSX) on April 30, 2019 flatly denied all the charges stating that it was not involved in any form of theft and tax fraud.

Some section of press ran the story regarding suspension of sales tax registration of the company along with charges framed by the FBR. The notice sent to the PSX by M/s. Hascol Petroleum Limited also threatened to initiate legal action against such news reports.

FBR sources said that suspension of sales tax registration of any company was not done on the wishes of a person. It is thorough process and a commissioner of Inland Revenue only issued such order after having sufficient records.

The sources further said that since the centralization of system the suspension of sales tax registration was done through the main system of Inland Revenue and WeBOC system.

The sources said: “Commissioner shall issue written order to the concerned registered person detailing the reasons for suspension. The order shall also be provided to all other Large Taxpayer Units (LTUs)/Regional Tax Offices (RTOs), the FBR‘s computer system, the STARR computer system and the Customs Wing computer system for information and necessary action as per law.”

They also said that suspension of registered person will make them ineligible to avail input tax adjustment/refund. “Similarly, no input tax adjustment/refund shall be allowed to any other registered persons on the basis of invoices issued by such suspended person (whether issued prior to or after such suspension).”

The sources said that the suspension would also disable a company to file a goods declaration in customs system for clearance of consignment.

What is post suspension?

According to FBR’s official website the suspended registered person will be issued a show cause notice (through registered post or courier service) within seven days of issuance of order of suspension by the Commissioner.

“The registered person will have an opportunity of hearing with fifteen days of the issuance of such notice clearly indicating that he will be blacklisted.”

In case of non-availability of the suspended person at the given address, the notice may be placed on the main notice Board of the LTU/RTO.

The sources said that where the show cause notice is not issued within seven days of the order of suspension, the order of suspension shall become invalid.

The notice issued by LTU Karachi to suspend the registration:

May 2, 2019