Pkrevenue.com

Year: 2019

  • Last date for asset declaration scheme not to be extended: Member IR

    Last date for asset declaration scheme not to be extended: Member IR

    KARACHI: Ms. Seema Shakil, Member Inland Revenue (Operations), Federal Board of Revenue (FBR) on Monday said that date for asset declaration scheme will not be extended due to obligations under IMF loan program.

    “The last date for availing asset declaration scheme is June 30, 2019. There will be no further extension in the last date as the IMF loan program will commence from July 01,” the member said at an even organized by Karachi Tax Bar Association (KTBA).

    She said that present scheme was bargained with the IMF in order to provide people declare their undisclosed cash, assets and supplies before the tax machinery launch massive crackdown.

    Ms. Seema Shakil said that the asset declaration scheme had been launched within short span of 8 to nine months considering bulk of information of Pakistanis having offshore investments received. Besides, information under OECD treaty has also been received to the authorities.

    Further, the FBR notified rules for Benami laws in February 2019 empowering authorities to take action against people having assets in some other names.

    It was demand from the stakeholders to allow such scheme before any harsh action. She said that it was unfair to take action without giving opportunity.

    On the occasion, Zeeshan Merchant, former vice president, KTBA highlighted the major points of the asset declaration scheme.

    He said that the scheme was expiring on June 30, 2019 and people were still trying to understand it.

    He urged the tax authorities to extend the last date for availing the scheme as much of the time had lapsed due to Eid holidays.

    Abdul Qadir Memon, President, Pakistan Tax Bar Association, Rehan Siddiqui, President, KTBA and other senior official of FBR were also present on the occasion.

  • Powers to form Customs tribunal shifted to Prime Minister

    Powers to form Customs tribunal shifted to Prime Minister

    KARACHI: The Finance Bill 2019 has proposed to shift the powers to form Customs Appellate Tribunal from the federal government to the Prime Minister.

    According to interpretation by EY Ford Rhodes Chartered Accountants Firm, the Finance Bill 2019 sees to substitute Section 194 of Customs Act, 1969, which empowers the federal government to form, regulate and conduct the affairs of the Appellate Tribunal.

    “The Bill seeks to shift these powers to the Prime Minister,” it added.

    The Appellate Tribunal shall consist of a Chairman, judicial and accountant members.

    The terms and conditions of appointment of the chairman and judicial and technical members (this may be referred to accountant members) are proposed to be determined by the Prime Minister.

    Further, the appointment of a technical member shall be for a period of two years. The Bill seeks to explain the criteria for appointment of judicial members and accountant members as under:

    A judicial member of the Appellate Tribunal shall be appointed, unless such person:

    (a) has been a judge of a High Court;

    (b) has exercised the powers of a District Judge and is qualified to be a judge of the High Court; or

    (c) is or has been an advocate of a High Court and is qualified to be appointed as a judge of a High Court:

    Further, the person who is or has been an advocate of High Court shall not be appointed as judicial member unless selected in accordance with the Civil Servants Act, 1973 (LXXI of 1973) and the Federal Public Service Commission Ordinance, 1977 (XLV of 1977).

    An accountant member of the Appellate Tribunal shall be appointed, unless such person:

    (a) is an officer of Pakistan Customs Service equivalent in rank to the Member of FBR or Chief Collector of Customs or Director General; or

    (b) is a Collector or Director or Chief of the FBR having at least three years’ experience in that position.

  • Adjudicating monetary limits of principal appraisers, superintendents enhanced

    Adjudicating monetary limits of principal appraisers, superintendents enhanced

    KARACHI: The government has enhanced monetary threshold of principal appraisers and superintendents for adjudication with condition of reducing time limit to 90 days for deciding cases.

    Through Finance Bill 2019, it has been proposed to redefine the monetary threshold of the officers of customs for adjudication. The bill also proposed to abolish the power of assistance collector in adjudicating matters.

    According to budget commentary of EY Ford Rhodes, the following powers of adjudication have been proposed as compared with existing powers:

    Power of adjudication

    Under Section 179 of Customs Act, 1969

    (i) Collector: No limit – No change in present power

    (ii) Additional Collector: Not exceeding three million rupees – No change in present power

    (iii) Deputy Collector: Not exceeding one million rupees – No change in existing power

    (iv) Assistant Collector: Not exceeding five hundred thousand rupees: the power of assistance collector proposed to be deleted

    (v) Superintendent: Not exceeding fifty thousand rupees: proposed that it should not exceeding one hundred thousand rupees

    (vi) Principal Appraiser: Not exceeding fifty thousand rupees: it is proposed it should not exceeding one hundred thousand rupees.

    The Finance Bill further seeks to reduce the time period to decide the cases within ninety days instead of existing one hundred and twenty days.

  • Commission directed to submit privatization proposals for Steel Mills

    Commission directed to submit privatization proposals for Steel Mills

    ISLAMABAD: Cabinet Committee on Privatization (CCoP) on Monday directed Ministry of Industries and Production and Privatization Commission to present proposals for the privatization of Pakistan Steel Mills.

    Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh, chaired meeting of CCoP.

    The committee discussed the privatization of Pakistan Steel Mills.

    While presenting the report of the task force on energy reform, the Ministry of Energy briefed the Committee about the challenges being faced by the DISCOs.

    Various measures recommended by the task force for improving the performance of energy sector with a focus on reduction of losses and enhancing the efficiency of DISCOs were discussed during the meeting.

    The Committee directed the Ministry of Energy to submit proposals aimed at accelerating closure of those GENCOs that have outlived their recommended life and are running into losses. Issue of delisting of House Building Finance Corporation Ltd (HBFC) from the privatization list was also recommended to be presented in the next meeting.

    The Meeting was attended by the Federal Minister for Privatization, Muhammad Mian Soomro, Adviser on Commerce, Textile, Industry and Production and Investment, Abdul Razak Dawood, various Federal Secretaries and senior officials of the government of Pakistan.

  • Demand, supply to decide dollar rate: SBP governor

    Demand, supply to decide dollar rate: SBP governor

    KARACHI: The demand and supply will decide the rate of US dollar, Reza Baqir, Governor, State Bank of Pakistan (SBP) said on Monday in his maiden press conference.

    “Let the market decide the dollar rate,” he said while replying to questions regarding exchange rate.

    He said that there were impacts of high inflation while increasing exchange rate. On the other hand if exchange rates are maintained then it will result in high debts, he added.

    At present the exchange rate is being decided by the market and it help in improving the indicators, the SBP governor said.

    The governor said that by controlling the exchange rate the imports had been reduced. He said that current account deficit had been reduced significantly. The deficit was at $19.8 billion. The deficit has been narrowed to $13 billion so far in the current fiscal year.

    He said that exchange rate was improved before Eid ul Fitr due to better inflows. However, payment pressure from corporate sector has against pressurized the local currency, he added.

    The SBP governor said that the economic team is bringing improving in the country.

    He said that in the past such budgets were presented which had failed to yield results.

    However, in the current budget relief measures have been announced under social protection program.

    Talking about the IMF program and its conditionalities, he said that people should wait till July 03, 2019 and after that all the documents related to fund programs would be made public.

  • KCCI seeks three month deferment for implementing unregistered buyers’ details

    KCCI seeks three month deferment for implementing unregistered buyers’ details

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday urged the government to defer implementation of obtaining information of unregistered buyers.

    (more…)
  • Rupee hits another historic low against dollar

    Rupee hits another historic low against dollar

    KARACHI: The Pak Rupee hit another historic low after depreciation of Rs1.11 against US dollar on Monday owing to payment pressure for oil import.

    The rupee ended Rs156.96 to the dollar as compared with last Friday’s closing of Rs155.85 in interbank foreign exchange market.

    The foreign currency market initiated in the range of Rs156.50 and Rs157.00. The market witnessed day high of Rs157.00 and low of Rs156.96 and closed at Rs156.96 in interbank foreign exchange market.

    However, the exchange rate in open market witnessed appreciation of rupee value.

    The buying and selling of dollar was recorded at Rs155.50/Rs156.50 from last Saturday’s close of Rs156.00/Rs157.00 in cash free market.

    The rupee witnessed depreciation for the last more than one and half years. The rupee was kept stable by the previous government in order to control the economic imbalances.

    However, keeping the rupee stable against dollar created balloon in the economy. Now the government is under negotiation with the IMF to bargain a new loan program, which is almost finalized. The IMF board is scheduled to meet next week to review Pakistan’s request for new loan program.

  • Customs intelligence Karachi announces auction of confiscated vehicles on June 19

    Customs intelligence Karachi announces auction of confiscated vehicles on June 19

    KARACHI: Customs Intelligence and Investigation has announced auction of confiscated vehicles to be held on June 19, 2019 at State Warehouse of the Directorate of Intelligence and Investigation, Karachi.

    According to details made available to PkRevenue.com following vehicles will be presented for auction on June 19, 2019.

    Auction of Left over lots (Rejected lots )and fresh lots will be held on 19th June, 2019.

    1. Toyota Crown Car, Reg no AA-7095, Model 1995.

    2. BMW Car, Reg no QZ-318, Model 2000.

    3. Mercedes Benz Car(E-500), Reg no AC-3077, Model 2002.

    4. Honda Inspire Car, Reg no GS-4012, Model 2003.

    5. Toyota Crown Car, Reg no AAJ-191, Model 2002.

    6. Mercedes Benz car, Reg no AAJ-106, Model 2001.

    7. Toyota Land Cruiser Jeep, Reg no BRN-124689, Model 1990.

    8. Toyota Premio Car, Reg no BFB-537, Model 2005.

    9. Toyota Premio Car, Reg no LT-737, Model 2003.

    10. Toyota Land Cruiser, Reg no JAF-935, Model 1994.

    11. Toyota Land Cruiser, Reg no IDL-531, Model 1993.

    12. Mercedes Benz Car(S-550), Reg no CZ-672, Model 2007.

    13. BMW Car760Li, Reg no BCP-523, Model 2002.

    14. Toyota Crown Car, Reg no BBL-439, Model 2004.

    15. Honda Accord Car, Reg no AXY-881, Model 2003.

    16. Toyota Surf Jeep, Reg no BD-0310, Model 2003.

    17. Toyota Mark-X Car, Registration plate/Mark no AQJ-399, Model 2007.

    18. Toyota Vitz Car, Reg no BFH-878, Model 2001.

    19. Mercedes Benz Car, Reg no AYB-709, Model 2008.

    20. BMW 530i Series Car, reg no LZG-105, Model 2004.

    21. Toyota Prado Jeep, Reg no LXW-7155, Model 1996.

    22. Toyota Premio Car, Reg no BDJ-715, Model 2002.

    23. Toyota Lexus Car, Reg no BDJ-700, Model 2005.

    24. BMW 320i Car, Un-Registered, Model 2003.

    25. Toyota Vitz Car, Registration plate/mark AA-483, Model 2001.

    26. Honda Civic Rebon Car, Registration plate/Mark YK-561, Model 2005.

  • Finance Bill 2019: GD filing limit reduced to 10 days

    Finance Bill 2019: GD filing limit reduced to 10 days

    KARACHI: The government has reduced the goods declaration filing limit from 15 days to 10 days by proposing amendment to Section 79 of Customs Act, 1969.

    The Finance Bill 2019 has proposed reduction in time limit of filing GD from 15 days to 10 days.

    Presently Section 79 of Customs Act, 1969 is as:

    79. Declaration and assessment for home consumption or warehousing or transshipment

    (1)The owner of any imported goods shall make entry of such goods for home consumption or warehousing or transshipment] or for any other approved purposes, within fifteen days of the arrival of the goods, by,-

    (a) filing a true declaration of goods, giving therein complete and correct particulars of such goods, duly supported by commercial invoice, bill of lading or airway bill, packing list or any other document required for clearance of such goods in such form and manner as the Board may prescribe; and

    (b) assessing and paying his liability of duty, taxes and other charges thereon, in case of a registered user of the Customs Computerized System:

    Provided that if, in case of used goods, before filing of goods declaration, the owner makes a request to an officer of customs not below the rank of an Additional Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:

    Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.

    Explanation.- For the purposes of this clause, the assessment and paying of duty, taxes and other charges in respect of transshipment shall be at the port of destination.

    (2) If an officer, not below the rank of Additional Collector of Customs, is satisfied that the rate of customs duty is not adversely affected and that there was no intention to defraud, he may, in exceptional circumstances and for reasons to be recorded in writing, permit, substitution of a goods declaration for home consumption for a goods declaration for warehousing or vice versa.

    (3) An officer of Customs, not below the rank of Assistant Collector of Customs, may in case of goods requiring immediate release allow release thereof prior to presentation of a goods declaration subject to such conditions and restrictions as may be prescribed by the Board.

    The Bill, however, also proposed the penalty for non-filing of the declaration within the stipulated time is proposed to be amended from Rs15,000 to Rs5,000 per day for the initial five days of default and at a rate of Rs10,000 per day for each day of default thereafter.

  • Finance Bill 2019: reduced duty rates proposed for various imported goods

    Finance Bill 2019: reduced duty rates proposed for various imported goods

    KARACHI: The government has announced reduction in customs duty on import of various goods.

    The reduction in duty has been proposed through Finance Bill 2019.

    According to A F Ferguson & Co. Chartered Accountants Firm, by virtue of amendment in First Schedule and Fifth Schedule, reduction in customs duty has been proposed for the following items:

    Acetic acids from 16 percent to 11 percent

    Oxalic acid from 11 percent to 3 percent

    Sheets of veneering from 11 percent to 3 percent

    Fibreboard of wood of certain specifications from 16 percent to 11 percent

    Fabric (non-woven) from 16 percent to 11 percent

    Aluminium cans from 20 percent to 11 percent

    Chemicals used in leather or like industries from 20 percent /16 percent to 16 percent /11 percent

    Insulation tape double sided from 11 percent to zero percent

    Shoe lasts from 20 percent to 16 percent

    Other articles of Vulcanised rubber 20 percent to 5 percent

    Graphite or other carbon or mixture of these products 11 percent to 3 percent

    Other refractory ceramic goods from 11 percent to 3 percent

    Other Electric motors and generators from 20 percent to 16 percent

    Other automatic regulating and controlling instruments from 20 percent to 16 percent

    Multi-ply (clay coated paper and paper board) and aluminium foil from 18 percent to 15 percent

    Coils of aluminium alloys from 8 percent to 5 percent

    Pre-fabricated room/structures for setting up new hotels/motels in Hill Stations, Gilgit-Baltistan, AJK, and Coastal Areas of Baluchistan from 11 percent to 8 percent

    (ii) Following new concessions have been proposed under the Fifth Schedule:

    – Laser transmitter, laser receiver, control box, rigid mast pack, with or without scraper at concessional rate of 2 percent

    – Plant and Machinery by developers, contractors and service companies involved in infrastructure development of Large Diameter Gas Pipelines(i.e. 24” and above) projects at concessional rate of 10 percent to 0 percent subject to certain conditions

    – Aluminium sheets and coils and aluminium foil, AKD wax and dispersing agents at concessional rate of 5 percent

    – Imports by manufacturer of infant formula milk registered under Sales Tax Act, 1990 at concessional rate of 5 percent

    – Import of Exposide resin, if imported by manufacturer of powder coatings registered under Sales Tax Act, 1990 and subject to annual quota by IOCO at concessional rate of 10 percent

    – Polymers of ethylene and other plastic raw materials on import by manufacturers of diapers and sanitary napkins registered under Sales Tax Act, 1990 at concessional rates of 16 percent to 5 percent

    – Import of carbon steel strip imported by manufacturer of shaving bladed/razors registered under Sales Tax Act, 1990 at concessional rate of 5 percent

    – Import of CNG vehicle conversion kits approved by OGRA imported by authorized dealers at concessional rate of 5 percent

    (iii) Following amendments for availing concessions earlier granted have been proposed for the following sectors:

    Sector Particulars

    Agriculture Sector

    Certain conditions for availing the concession on import of agricultural machinery have now proposed to be waived off

    Power transmission and grid stations

    An additional condition has been proposed for availing concessional duty on import of machinery and equipment meant for power transmission and grid stations. The goods shall not be sold without prior approval of the FBR.

    Marble, granite and gem stone extraction and processing industries

    Additional condition for the concessional rate on machinery and equipment is proposed to be added with respect to disposal of the imported machinery.