Pkrevenue.com

Year: 2019

  • Car import plunges by 80 percent on payment in foreign exchange condition

    Car import plunges by 80 percent on payment in foreign exchange condition

    KARACHI: The import of completely built unit (CBU) cars has sharply declined by 80 percent in March 2019 owing to mandatory requirement of paying duty and taxes through foreign exchange.

    According to Pakistan Bureau of Statistics (PBS) the import of motor cars fell 80 percent to $6.14 million in March 2019 when compared with $30.5 million in the same month of last year.

    It is worth mentioning here that the ministry of commerce issued SRO 52(I)/2019 dated January 15, 2019 which stated that all vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme, the duty and taxes shall be paid out of foreign exchange arranged by Pakistani nationals themselves or local recipient supported by bank enchashment certificate showing conversion of foreign remittances to local currency.

    The payment through foreign exchange should be:

    a. The remittance for payment of duties and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and

    b. The remittance shall either be received in the account of the Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his family.

    The import data of motor vehicles issued by Pakistan Bureau of Statistics (PBS) revealed that motor cars worth $209 million were brought into the country during July – March 2018/2019 as compared with $359.56 million in the same period of the last fiscal year.

    The car import also fell due restrictions on non-filers for registering the imported vehicles.

  • Essential items’ prices inflate for three consecutive weeks in April

    Essential items’ prices inflate for three consecutive weeks in April

    The prices of essential commodities have risen for the third consecutive week this month, signaling high headline inflation for April 2019. According to data released by the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) has consistently increased in the weeks ending April 4, 11, and 18, reflecting a challenging trend for consumers.

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  • Sales Tax Act 1990: FBR may appoint special panels for audit

    Sales Tax Act 1990: FBR may appoint special panels for audit

    KARACHI: Federal Board of Revenue (FBR) has been empowered under sales tax law to appoint special audit panels for conducting audit of any registered person.

    The updated Sales Tax Act, 1990 issued by the FBR, the Section 32A explains the powers of the revenue body for appointment of special audit panels.

    Section 32A: Audit by Special Audit Panels

    Sub-Section (1): The Board may appoint as many special audit panels as may be necessary, comprising two or more members from the following, –

    (a) an officer or officers of Inland Revenue;

    (b) a firm of chartered accountants as defined under the Chartered Accountants Ordinance, 1961 (X of 1961);

    (b) a firm of cost and management accountants as defined under the Cost and Management Accountants Act, 1966 (XIV of 1966); or

    (d) any other person as directed by the Board,

    to conduct audit of a registered person or persons, including audit of refund claims and forensic audit and the scope of such audit shall be determined by the Board or the Commissioner Inland Revenue on a case-to-case basis. In addition, the Board may, where it considers appropriate, also get such audit conducted jointly with similar audits being conducted by provincial administrations of sales tax on services.

    Sub-Section (2): Notwithstanding that records of a registered person have been audited by an officer appointed under section 30, the Board or a Commissioner may direct special audit panel appointed under sub-section (1) to audit the records of any registered person.

    Sub-Section (3): Every member of special audit panel appointed under sub-section (1), shall have the powers of an officer of Inland Revenue under sections 25, 37 and 38.

    Sub-Section (4): Each special audit panel shall be headed by a chairman who shall be an officer of Inland Revenue.

    Sub-Section (5): If any one member of the special audit panel, other than the chairman, is absent from conducting an audit, the proceedings of the audit may continue and the audit conducted by the special audit panel shall not be invalid or be called in question merely on the ground of such absence.

    Sub-Section (6): The Board may prescribe rules in respect of constitution, procedure and working of special audit panel.

  • FTO takes suo moto notice in concealing income in garb of agriculture tax, Iranian oil sale

    FTO takes suo moto notice in concealing income in garb of agriculture tax, Iranian oil sale

    ISLAMABAD: Federal Tax Ombudsman (FTO) has taken suo moto notice and initiated investigation in open sale of Iranian oil in Balochistan and tax evasion in the garb of agriculture tax.

    The annual report 2018 issued by the office of FTO, stated that during the year the FTO proactively invoked powers to take action on own motion notices.

    It said that own motion investigation was initiated in the phenomenon of open sale of Iranian petroleum products in Balochistan at the petrol pumps. Proceedings were in progress, it added.

    Another own motion investigation was started in the phenomenon of tax evasion in the garb of agriculture tax. Since long, a large number of taxpayers have been showing a substantial portion of their income as agriculture income.

    “As tax on agriculture income was a provincial subject, so they were paying income tax to Federal Board of Revenue, on the income declared other than agriculture sources.”

    “While, at the same time they were not paying agriculture tax to the provinces,” the FTO report said, adding that on pointation by the FTO, the FBR had started sending notices to the defaulters.

    The FTO in another own motion investigation of a case of smuggling of mobile phones, mis-declared as LED lights, and cleared through green channel of WeBOC system, was undertaken as a suo-moto case and suitable recommendations were made.

  • Official website still showing Asad Umar as finance minister

    Official website still showing Asad Umar as finance minister

    The official website of Pakistan’s Ministry of Finance continues to show Asad Umar as the Finance Minister, despite Dr. Abdul Hafeez Shaikh assuming the role of Adviser to the Prime Minister on Finance and Revenue.

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  • Hafeez Shaikh holds phone discussion with IMF Mission chief

    Hafeez Shaikh holds phone discussion with IMF Mission chief

    ISLAMABAD: Dr Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance, Revenue and Economic Affairs held a phone discussion with Ernesto Ramirez-Rigo, IMF Mission Chief to Pakistan, after talking with Jihad Azour, IMF Director, earlier on Saturday.

    They discussed the progress of negotiations for an IMF-supported program for Pakistan.

    Both sides expressed their commitment for moving the discussions forward.

    It was agreed that an IMF mission will visit Pakistan by the end of April 2019.

  • Rupee sheds 20 paisas in open market

    Rupee sheds 20 paisas in open market

    KARACHI: The Pak Rupee ended down by 20 paisas in open market on Saturday owing to recent changes in the federal cabinet.

    The buying and selling of dollar was recorded at Rs142.00/Rs142.50 from previous day’s closing of Rs142.00/Rs142.50 in cash ready market.

    The local unit lost 50 paisas against the greenback during the last two days.

    Currency dealers said that the rupee was under pressure in the open market owing to uncertainty over the fate of the local currency after the new finance adviser had been installed by the Prime Minister.

    Asad Umar, who resigned from the portfolio of finance minister, said that any new finance incharge had to take difficult decision for betterment of economy.

  • PSX, China investment company hold seminar to facilitate cross border investments

    PSX, China investment company hold seminar to facilitate cross border investments

    KARACHI: VIS Credit Rating Company (VIS) in collaboration with Pakistan Stock Exchange Limited (PSX) and Pak China Investment Company Limited (PCIC) organized an event on Saturday to celebrate collaboration between VIS and China Chengxin International Credit Rating Company Limited (CCXI).

    The theme of the event was to facilitate cross border investments into Pakistan and promote informed investment decision making along CPEC and Belt & Road.

    The event, graced by Dr. Ishrat Hussain – Advisor to the Prime Minister as the chief guest, was attended by leading professionals and business personalities from the financial and industrial sectors of the country.

    CCXI is the largest rating agency in China with over 20,000 ratings outstanding currently and a work force of over 900 analysts based in China.

    During the event, VIS & CCXI launched their jointly developed methodology, ‘Investment Strength, Governance, Environment & Social (ISG-ES) Grading’.

    ISG-ES is a pioneering grading methodology jointly developed by the two credit rating agencies, VIS & CCXI, keeping in mind the information required by foreign investors while making long term investment decisions.

    The product is meant to grade organizations based on long term investment ability criterion with emphasis on overall investment financial strength, corporate governance standards established within the organization as well as a flavor of social responsibility and environmental accountability in processes and systems.

    ISG-ES is especially envisioned to be useful for those organizations seeking long term local/foreign equity investment or those seeking to establish partnerships with companies for business opportunities under CPEC and/or the B&R initiative.

    The product is envisioned to attract international investors and play a major role in the space of informed investment decision making.

    “Pakistan Stock Exchange, being one of the stakeholders in VIS, is proud to have this collaboration between VIS and China Chengxin International Credit Rating Company Limited”, stated Richard Morin, MD, Pakistan Stock Exchange.

    He added that rating agencies have a very important role to play in that they grade companies and organizations for analysts, investors, customers and other stakeholders and this grading serves as a benchmark for these companies’ performance going forward.

    Three prominent players from the financial and industrial sectors of Pakistan, Habib Bank Limited, Jubilee General Insurance Limited and International Industries Limited, who have already conducted ISG-ES assessment shared their experience and discussed benefits of such a pioneering product that provides them opportunities to showcase themselves as potential investment in Pakistan.

  • Sales Tax Act 1990: return filing requirement by registered persons

    Sales Tax Act 1990: return filing requirement by registered persons

    KARACHI: A sales tax registered person is required to file true and correct sales tax return on monthly basis by providing details of supplies and persons whom the supplies were made during the period.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 26 explained the requirement of filing sales tax return by registered persons.

    Section 26: Return

    Sub-Section (1): Every registered person hall furnish not later than the due date a true and correct return in the prescribed form to a designated bank or any other office specified by the Board [FBR], indicating the purchases and the supplies made during a tax period, the tax due and paid and such other information, as may be prescribed;

    Provided that the Board may, by notification in the official Gazette, require any person or class of persons to submit return on quarterly basis:

    Provided further that the Board may, by notification in the official Gazette, require any person or class of persons to submit such return as may be prescribed annually in addition to the monthly return or quarterly return:

    Provided also that the return filed electronically on the web or any magnetic media or any other computer readable media as may be specified by the Board shall also be deemed to be a return for the purpose of sub-section (1) and the Board may, by notification in the official Gazette, make rules for determining eligibility of the data of such returns and e-intermediaries who will digitize the data of such returns and transmit the same electronically under their digital signatures.

    Sub-Section (2): omitted

    Sub-Section (3): A registered person may, subject to approval of the Commissioner Inland Revenue having jurisdiction, file a revised return within one hundred and twenty days of the filing of return under sub-section (1) or, as the case may be, sub-section (2), or under clause (a) or clause (b) of section 27, to correct any omission or wrong declaration made therein.

    Sub-Section (4): Notwithstanding the penalties prescribed in section 33, if a registered person wishes to file revised return voluntarily along with deposit of the amount of tax short paid or amount of tax evaded along with default surcharge, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him:

    Provided that in case the registered person wishes to deposit the amount of tax as pointed out by the officer of Inland Revenue during the audit, or at any time before issuance of the show cause notice, he may deposit the evaded amount of tax, default surcharge under section (34), and twenty five percent of the penalty payable under section 33 along with the levied return:

    Provided further that in case the registered person wishes to deposit the amount after issuance of show cause notice, he shall deposit the evaded amount of sales tax, default surcharge under section 34, and full amount of leviable penalty under section 33 along with the revised return and thereafter, the show cause notice, shall stands abated.

    Sub-Section (5): The Board may, by notification in the official Gazette, require any person or class of persons, for any goods of such description or class, to furnish such summary or details or particulars pertaining to the imports, purchases and supplies during any tax period or periods, in such format as may be specified.