The Economic Survey of Pakistan 2018/2019 stated that the payment for imported vehicles can now be made at the customs stage through foreign remittances received in the account of family members of the sender.
(more…)Day: July 13, 2019
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FBR proposes retaining machinery for five years by EPZ investors for duty, tax free disposal
KARACHI: Federal Board of Revenue (FBR) has proposed retaining period of machinery to five years imported by exporters for disposing of without duty and taxes.
The FBR through SRO 805(I)/2019 proposed amendments to Customs Rules, 2001 and proposed to enhance the retaining period of machinery for manufacturers having facility within Export Processing Zones to five years in order to dispose of without duty and taxes.
According to proposed amendments, the investors in EPZ shall retain machinery for a period of five years from the date of its import into the zone.
Further the investors in EPZ shall be allowed to dispose of machinery in the tariff are after filing goods declaration subject to fulfillment of conditions of Import Policy Order upon payment of duty and taxes on the following terms, namely:
01. If sold or otherwise disposed of before the expiration of three years from the date of import in EPZ, full duty and taxes would be applicable.
02. If sold or otherwise disposed of after three and before four years from the date of import in EPZ, about 75 percent of duty and taxes would be applicable.
03. If sold or otherwise disposed of after four and before five years from the date of import in EPZ, about 50 percent of duty and taxes would be applicable.
04. If sold or otherwise disposed of after five years from the date of import of EPZ the exporter/investor would enjoy free of duty and taxes.
The FBR also proposed amendment to the rules regarding licensing for operating a warehouse. As per the proposed amendments the documents and condition is as:
“The site plan of the proposed warehouse indicating the location of the premises and the details of the total area, covered area and the area proposed to be utilized for the manufacturing area of facility and for storing and bonded warehoused input goods and manufactured goods therefrom for exports, and spate other storage areas for duty paid input goods, manufactured goods there from, factory rejects and wastages, for domestic local sales, in case of a manufacturing bond.
Another amendment in this regard is as:
“In case of manufacturing bond, the applicant shall apply to the Regulatory Authority designated by the Collector of Customs having jurisdiction in which the unit is registered under the Sales Tax Act, 1990, and in case there are more than one unit of a proprietor, he shall apply to the Regulatory Authority designated by the Collector of Customs where the head office of the applicant is registered under Sales Tax Act, 1990.”
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FBR directs banks to provide details of depositors receiving Rs500,000 as profit on debt per year
KARACHI: Federal Board of Revenue (FBR) has directed banks to provide details of all those persons receiving interests above Rs500,000 in a year on their deposits.
The FBR sources said that an amendment has been introduced to Section 165A of Income Tax Ordinance, 2001 through Finance Act, 2019 and tightened laws regarding information providing by banks about their depositors.
Prior to amendment the clause (d) of the Ordinance, the banks were required to provide a list of persons receiving profit on debt exceeding Rs1 million for filers and Rs500,000 for non-filers and tax deduction thereon during preceding financial year.
However, after the amendment, now the banks are required to provide list of all those persons receiving profit on debt exceeding Rs500,000 – irrespective of filers and non-filers – and tax deduction thereon during preceding financial year.
Through the Finance Act, 2019 the term non-filers has been abolished and a new Tenth Schedule has been introduced under which persons appearing on Active Taxpayers List (ATL) would be subject to reduced rate of withholding tax rates.
Another amendment has been made through the Finance Act, 2019 to clause (a) of Section 165A of the Income Tax Ordinance, 2001, under which the banks are now required to provide a list of persons containing particulars of cash withdrawals exceeding Rs50,00 in a day and tax deducted thereon aggregating to Rs1 million or more during each preceding calendar month.
The amendment deleted the words ‘for filers and non-filers’ due to elimination of term ‘non-filers’.
However, banks would remain required to provide the details under clause (b) of Section 165A of the Ordinance, including a list containing particulars of deposits aggregating rupees ten million or more made during the preceding calendar month.
Meanwhile under clause (c), the banks are required to provide a list to FBR of payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to rupees two hundred thousand or more during the preceding calendar month.
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Weekly Review: Stock market likely range bound on monetary policy announcement
KARACHI: The stock market to remain range bound next week. Investors are expected to have a cautious stance keeping in view monetary policy announcement on July 16, 2019, analysts at Arif Habib Limited said.
The analysts said that the State Bank of Pakistan (SBP) may increase a 100 basis points in view of aggravating inflationary pressure.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) was commenced on a negative note during the current week.
The lackluster attitude prevailed amid bleak near-term macro-economic outlook following release of IMF staff report. Additionally, apprehensions with regards to issue of Sukuk bonds for circular debt resolution kept the momentum suppressed.
With SBP announcing the date for monetary policy on the last day of the week, the investor sentiment further deteriorated. The local bourse closed at 33,672, shedding off 518 points.
Sector-wise negative contributions came from i) Commercial Banks (81 points), ii) Power Generation & Distribution (77 points), iii) Oil & Gas Marketing Companies (53 points), iv) Automobile Assembler (53 points), and v) Cement (50 points).
Scrip-wise negative contributions came from HUBC (53 points), PSO (37 points), BAHL (29 points), DGKC (24 points) and INDU (21 points). On the other hand, positive scrip-wise contributions came from FFC (34 points), DAWH (16 points), and EFERT (5 points).
Foreign buying was witnessed this week clocking-in at USD 5.91 million compared to a net buy of USD 5.92 million last week. Buying was witnessed in Cement (USD 3.0 million) and Power Generation& Distribution (USD 2.3 million). On the domestic front, major selling was reported by Companies (USD 7.6 million) and Mutual Funds (USD 5.3 million).
Average Volumes settled at 51 million shares (down by 41 percent WoW) while value traded clocked-in at USD 13 million (down by 36 percent WoW).
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FBR taking all measures to broaden tax base: Shabbar Zaidi
Syed Shabbar Zaidi, Chairman of the Federal Board of Revenue (FBR), addressed the media on Friday, affirming the government’s commitment to expanding the tax base while ensuring that no sector of the economy is unduly burdened.
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