The Oil and Gas Development Company Limited (OGDCL) issued a clarification on Monday, refuting media reports that suggested a massive discovery of shale gas in Sindh.
(more…)Year: 2019
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Procedure to check active taxpayer status
ISLAMABAD: Appearance of a taxpayer in Active Taxpayers List (ATL) has become very important to avail benefit of reduced withholding income tax rate.
The ATL has become even more important after the inclusion of 10th Schedule to Income Tax Ordinance, 2001 through Finance Act, 2019 under which a person, who is not part of the ATL, is subject to 100 percent additional withholding tax.
According to Federal Board of Revenue (FBR) a taxpayer can check its active status in three different ways, which included:
Verification through Online Portal:
The ATL status check allows you to confirm your Active Taxpayer status.
Check Active Taxpayer status by SMS:
Check Individual’s Active Taxpayer status by SMS
Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.
Check Active Taxpayer status of AOP and Company by SMS
Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.
To check active status by taxpayers of Azad Jammu and Kashmir by SMS
For Individual, type AJKATL (space) CNIC (without dashes). Send it to 9966.
Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.
The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through Finance Act 2018.
Check Active Taxpayer status by downloading ATL from FBR official website.
The FBR said that a person appearing on the ATL will have following benefits:
Lower rates of tax deduction at source by banks on both profits and cash withdrawals
Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles
Lower rate of tax on buying and selling of property
Lower withholding tax rate on capital gains on sale of securities
Charges for tax on dividend will be lower
Lower rate of withholding tax on prize bond winnings
Allows you to claim back overpaid tax that has been withheld.
The FBR said that a person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL.
For example, to be part of the ATL published on 1st March 2018, a person must have filed a Tax return for the Tax year 2017. Similarly, to be a part of the ATL published on 1st March 2019, a person must have filed a Tax Return for the Tax year 2018.
Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018. For example, to be part of the ATL published on 1st March 2019, a person must file a Tax Return by the specified due date for the Tax year 2018.
However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.
Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under:
Company: Rs20,000
Association of Persons: Rs10,000
Individual: Rs1,000
A company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.
Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.
Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.
The FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.
The name of late filer will appear on the ATL only after the payment of surcharge, the FBR added.
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Rupee falls by 16 paisas against dollar in early trade
KARACHI: The Pak Rupee fell 16 paisas against dollar in early trade on Monday owing to demand for import payments as market opened after two day weekly holidays.
The exchange rate is at Rs155.45 to the dollar in interbank foreign exchange market in the early trade. The market was closed on last Friday at Rs155.29 to the dollar in interbank foreign exchange market.
Currency experts said that the rise in dollar value would be temporary as inflows of export receipts and remittances would help the rupee in next sessions.
The inflows of portfolio investment in debt securities reached above $1 billion and it was also helping the rupee to resist against the greenback.
Currency experts said the rupee was under pressure against the dollar due to past two days weekly holidays.
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NBP makes progress in regulatory compliance for US operations
KARACHI: National Bank of Pakistan (NBP) has made significant progress in compliance with regulatory matters in USA operations.
In its financial report for quarter ended September 30, 2019, the bank said that in 2016 its New York branch entered into a written agreement with the Federal Reserve Bank of New York and New York State Department of Financial Services (US regulators).
This agreement requires the bank to address certain compliance and risk management matters relating to anti-money laundering and the US bank secrecy law requirements.
This agreement also requires implementation of the requisite system and controls and allocation of adequate resources to ensure full compliance with such requirements.
The NBP’s management continues to address the matters highlighted in the written agreement and in the subsequent inspections, and get them independently validated.
“NBP has made considerable progress and seeks to comply with all applicable laws and regulations.”
The NBP said that heightened attention to compliance is expected across the bank’s international franchise which will also gain from the development and implementation of an integrated strategy.
As per quartered ended September 30, 2019, the total assets of the bank amounted to Rs3,025.37 billion which is 8.1 percent higher than Rs2,798.57 billion as at December 31, 2018.
This represents around 13.8 percent of the banking industry total assets.
The bank’s market share in deposits, advances and investment is around 14 percent, 12 percent and 15 percent, respectively.
Strength of the bank’s balance sheet is driven by the wide market outreach and branch banking network where the focus remains on low-cost deposit mobilization.
The bank said that due to the challenging economic environment the non-performing loans (NPL) of the bank have increased by Rs19.3 billion. As of September 30, 2019 NPL totaled to Rs152.49 billion as against Rs133.36 billion at the end of year 2018.
“This translates into loan infection ratio of 13.9 percent which is slightly higher than 12.6 percent as of December 31, 2018.”
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FBR may not extend date for Tax Year 2019 return filing
KARACHI: The Federal Board of Revenue (FBR) has announced that there will be no further extensions for filing income tax returns for the tax year 2019. Taxpayers have six days left to submit their returns, with the final deadline set for November 30, 2019. According to sources within the FBR, this decision comes after multiple extensions were granted to facilitate compliance.
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MCC Preventive announces vehicles’ auction on Nov 25
KARACHI: Model Customs Collectorate (MCC) Preventive, Karachi announced auction of confiscated vehicles to be held on November 25, 2019 at Ghasbandar East Wharf, Karachi.
Following vehicles will be presented for auction:
01. Toyota Lexus Car, Reg. No. UC-868, Model 2006, Chassis No. JTHBG 963905034702
02. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999cc, Chassis No. MCU-10-0013510
03. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, Chassis No. JZX110-6000922
04. Toyota AXIO-X car – White Color, Reg. No. BFE-068, 1496cc, Model 2007, Chassis No. NZE-141-6028039
05. Toyota Land Cruiser Jeep, Silver Color, Reg. No. BG-1131, Model 1989,3400cc, Chassis No.BJ 60-023765
06. Mercedes Benz Saloon Car Black, Reg. No. BFF-014, Model 2007, Chassis No. WDD2193222A117436
07. Toyota Land Cruiser Jeep P. White, Reg. No. LZN-888, Model 1999, 4663cc, Chassis No. UZJ 100-0081129
08. Toyota Surf Jeep White, Reg. No. BF-9252, Model 1998, Chassis No. RZN185-9019896
09. Toyota Hilux Surf Jeep, Reg. No. CJ-4242(Sindh), Model 1990, 2446cc, Chassis No. LN130-0026273
10. Nissan X-Trail 5 Door Jeep – Pearl White, Reg. No. GR-621, Model 2005, Chassis No. NT 30-100374
11. Toyota Mark X Car Trim, Reg. No. BFB-837, Model No. 2005, 2499cc, Chassis No. GRX 120-3007142
12. Toyota Land Cruiser Jeep (Petrol) White, Reg. No. BF-5933, Model 1995, 4476cc, Chassis No. FZJ 80-0109507
13. Honda Civic Hybrid Car, Reg. No. AND-312, Model No 2008, 1339cc, Chassis No. FD 3-1203642
14. Toyota PASSO car, Reg. No. G5-6996, Model 2006, 996cc, Chassis No. KGC 30-0044392
15. Toyota AXIO Car, Reg. No. KCH-434, Model 2006, 1496cc, Chassis no. NZE141-6003694
16. Mercedes Benz Saloon car (AG), Reg. No. AB 1001, Chassis No. WDB1240312B476728
17. Toyota Hilux Surf Jeep, Reg. No. UU-691, Model 1992, 240cc, Chassis No. LN130-7022502
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FBR initiates action against concealed amounts in immovable property purchases
ISLAMABAD: Federal Board of Revenue (FBR) has initiated scrutiny of transactions of immovable properties, especially those where amnesty was availed, sources said.
The sources said that the FBR had initiated examination of transactions of sales and purchases of immovable properties during past years, in order to find out the quantum of amount concealed or not declared.
It is believed that huge amount of black money was parked in the real estate business. The buyers and sellers deliberately are not showing actual value of the properties in their agreements.
The sources said that the FBR obtained data under Section 236C, Section 236K and Section 236W of the Income Tax Ordinance, 2001.
They said that the investigation of property transactions would be of past five years.
The seller was required to pay advance tax under Section 236C. Similarly, buyer was required to pay withholding tax under Section 236K. Meanwhile, a buyer is allowed to pay 3 percent income tax to whiten money invested in property purchase. This amnesty was allowed to undisclosed amount that is invested to the extent of values notified by the FBR.
The sources said that the FBR headquarters had transferred thousands of cases of immovable properties to field formation of Inland Revenue.
The FBR collected information of buyers and sellers of immovable properties from property registrar offices of the provinces.
The field formations have been asked to identify those persons who had not filed their income tax returns and wealth statement.
The field formations would initially send those persons who made transactions but had not filed their returns.
Under Section 114 of the Income Tax Ordinance, 2001 the following owners of immovable properties are required to file income tax returns:
— owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;— owns immoveable property with a land area of five hundred square yards or more located in a rating area;
— owns a flat having covered area of two thousand square feet or more located in a rating area.
The FBR has also asked the field formations to investigate the payments made for property transactions. The sources said that the FBR collected withholding tax on the notified valuation tables for immovable properties.
The notified values of the FBR were very low when compared with the open market values. Therefore, there was ample chance of concealment in property transactions.
The field formation will ask banks to provide details of identified persons, especially the transactions recorded by the banks for the payment of properties.
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FPCCI urges convention compliance for continuation of GSP Plus
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to ensure compliance to international conventions for continuation of GSP Plus status granted by European Union (EU).
In a statement issued on Saturday, Engr. Daroo Khan Achakzai, President, FPCCI urged the government to take all necessary measures in compliance of core international conventions pertaining to social compliance, including human rights, labor rights, environment and good governance which are pre requisite for the continuation of GSP Plus status to Pakistan.
While highlighting the importance of GSP Plus, he stated that Pakistan is the major beneficiary of GSP Plus from EU which is the second largest trading partner of Pakistan after USA and has positive trade balance with the bloc.
He stated that GSP Plus allows 20 percent of Pakistani exports to enter EU market at zero tariff and 70 percent at preferential rates and it was expected that Pakistan’s exports to the EU would increase by 20 percent or more during the next few years.
EU GSP Plus granted in 2013 and since then our export has increased to US$ 7.9 billion from US$ 6.2 billion but this increase is only in textile and clothing while the exports of many products like carpet, pharmaceutical, iron & steel, edible fruit, oil seed, copper, plastic, sugar etc. has declined as compared to pre GSP Plus period, he lamented.
Pakistan’s export to EU is mainly dominated by textiles and clothing which accounts 82 percent of total exports which is facing strict competition with Bangladesh and Sri Lanka.
He underscored the need to diversify and value addition in Pakistan’s export including carpets, leather, furniture, plastics, sports goods and agriculture products to exploit the full potential of GSP Plus.
The EU assessment report (2016) has also indicated that Pakistan’s export to EU is heavily relied on one product which indicates a risky situation for Pakistan, he added.
The President FPCCI also appreciated the signing of the EU-Pakistan Strategic Engagement Plan (SEP) in June 2019 for the establishment of a Security Dialogue, expanding relations in the areas of connectivity, migration, mobility, climate change and energy, education and culture, and science and technology.
He also underlined the need of enhancement of foreign investment in Pakistan from EU as Pakistan has improved its ease of doing business and has brought several reforms in business.
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Banking channel between Pakistan, Iran to become reality soon: KCCI
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday hoped that banking channel between Pakistan and Iran will become reality soon.
Agha Shahab, President, KCCI said at a meeting with an eight members high level delegation from Iran, which was led by the Managing Director of Milad-e-Noor Ali Mohtassham Amiri .
Agha Shahab noted that the negotiations on Free Trade Agreement (FTA) are underway as both the countries have shared their desire of upgrading Preferential Trade Agreement (PTA) into Free Trade Agreement (FTA) for which initial drafts have already been shared while the State Bank of Pakistan has also shared draft of Memorandum of Understanding (MoU) for signing its Banking Paying Arrangement (BPA) with Iran’s Iranian Bank Markazi Jomhouri.
Both countries have already signed MoU through which channels would be opened in the central banks of both the countries for trade transactions that would reduce the usage of dollar account for Letter of Credit (LC) clearance.
He hoped: “the desperately needed proper banking channel between Pakistan and Iran becomes a reality soon which would surely boost the existing trade ties.”
He was of the opinion that abundant opportunities were available in the Iranian dairy, livestock, meat and beverages sectors for Pakistani traders and investors while Pakistan can also take benefit of Iran’s petrochemical sector.
Agha Shahab underscored the need to sort out infrastructural constraints to enhance bilateral trade via Quetta-Taftan land route whereas regular operation of ECO container train will lend impetus to cargo and transit facilities between the two countries.
While underscoring the need for a realistic approach, President KCCI said that KCCI was keen to strengthen trade ties with their counterparts in Iran.
Managing Director of Milad-e-Noor Ali Mohtassham Amiri, on the occasion expressed the eagerness to improve trade ties with the Pakistani business community which would surely result in further improving the existing trade volume between the countries.
Managing Director of Milad-e-Noor Ali Mohtassham Amiri stated that they were intending to improve trade ties with Pakistan and if serious efforts are made from both side, Pakistan and Iran can certainly become powerful partners.
Commercial Attaché of the Iranian Consulate in Karachi Mahmoud Hajy Yousefi Pour, in his short remarks, pointed out that huge potential exists to enhance trade and investment cooperation between the two countries but because of some hurdles, trade was not prospering at the desired pace which requires attention.
The bilateral trade between Pakistan and Iran was much less than the potential as Pakistan exports stood at a mere $330.2 million while the imports were around $1.247 billion during 2018.
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Customs foils bid to smuggle explosive material in garb of toys consignment
KARACHI: Customs authorities have foiled a bid to smuggle explosive material into Pakistan in the garb of toy consignments, a statement said on Saturday.
According to details Model Customs Collectorate (MCC) Port Muhammad Bin Qasim foiled the bid to smuggle into Pakistan a consignment of explosive filled fireworks/firecrackers in the garb of toys and fun fair items.
M/s. Abrar Traders, Lahore, through his clearing agent A R Logistics has filed the goods declaration for clearance of imported assorted toys and fun fair items.
However, upon detail examination scrutiny by the collectorate staff, fireworks and fireworks crackers guns were found willfully concealed within the cartons of assorted toys.
The explosive/firecrackers are restricted items as per Import Policy Order and prone to smuggling under Section 2(s) of the Customs Act, 1969.
Accordingly, the collectorate seized the consignment and lodged an FIR. Further investigations are underway.
Mumtaz Ali Khoso, the collector of customs, appreciated the examination staff for detecting the case and reiterated the resolve not to allow any illegal activity at Port Qasim by unscrupulous elements.