Pkrevenue.com

Month: June 2020

  • Sindh Revenue Board announces tax incentive package

    Sindh Revenue Board announces tax incentive package

    KARACHI: Sindh Revenue Board (SRB) has announced tax incentive scheme and waived up to 100 percent penalty amount on payment of outstanding amount, said a statement on Monday.

    The SRB said that acceding to the request of the taxpayers, associations and tax bars, the provincial revenue authority, had issued tax incentive package, which provides substantial benefits and relief to the taxpayers, service providers and withholding agents, in return of their tax compliance, under the Sindh Sales Tax on Services Act, 2011.

    The package includes exemption of up to 100 percent of the amount of default surcharge, total remission of penalties and immunity from arrest and prosecution if the taxpayer deposits:

    1. the liability of the arrears of tax (as outstanding on May 31, 2020) plus zero percent of the amount of default surcharge thereon between June 01, 2020 and June 15, 2020;
    2. the liability of arrears tax (as outstanding on May 31, 2020) plus five percent of the amount of default surcharge thereon between June 16, 2020 and June 22, 2020; and
    3. the liability of arrears of tax (as outstanding on May 31, 2020) plus 10 percent of amount of default surcharge between June 23, 2020 and June 30, 2020.

    The SRB said that in case where no tax liability is outstanding but only the arrears of amounts of penalty and/or default surcharge are outstanding, tax incentive package allows the remission of 95 percent of the amount of such penalty and 90 percent of the amount of such default surcharge, if the balance of the amounts of penalty and default surcharge are deposited during the period from June 01, 2020 to June 30, 2020.

    The provincial revenue authority advised all taxpayers, service providers and withholding agents to avail the benefits of the tax incentive package which shall expire at the close of June 30, 2020.

    The incentives announced through the notification provide and opportunity to the taxpayers to get substantial waiver of their liability to pay penalties and default surcharge by depositing the outstanding amounts of tax liabilities during the period the said notification is valid.

    The SRB further said that the package may also help in resolution of disputes pending in litigation, appeals, adjudication or audit.

  • PM directs providing all possible incentives in budget 2020/2021

    PM directs providing all possible incentives in budget 2020/2021

    ISLAMABAD: Prime Minister Imran Khan on Monday directed the authorities to provide all possible incentives in budget 2020/2021 to industry for job creations and moving the wheels of the economy.

    The prime minister chaired a meeting to discuss the objectives and considerations for the forthcoming budget 2020/2021.

    The meeting was attended by Foreign Minister Shah Mehmood Qureshi, Minister for Industries and Production Muhammad Hammad Azhar, Planning Minister Asad Umar, Finance Adviser Dr. Abdul Hafeez Sheikh, Adviser Commerce Abdur Razzaq Dawood, Adviser Institutional Reform Dr. Ishrat Hussain and senior officials.

    Discussing priorities for the forthcoming budget, the prime minister said that every effort should be made to provide all possible incentives to the industry, create jobs for the youth and moving the wheels of economy.

    The prime minister stated that the corona pandemic has severely affected upward trajectory of economy towards stabilization and strengthening.

    He said that the government, despite its financial constraints, provided unprecedented stimulus economic package to support businesses and industry and to minimize the impact of corona.

    He said that the most affected sectors be identified so as to provide those with maximum possible support in the forthcoming budget.

    The prime minister directed that the process of cutting unnecessary government expenditure should be expedited at all levels including the federal government as well as provincial governments.

    Prime Minister Imran Khan stressed upon the need for reviewing the existing system of provision of subsidies to make them target-oriented and ensuring their optimum utilization.

    He said that the present situation calls for expediting reform process in critical sectors so as to reduce burden on national exchequer and provide relief to the masses.

    The prime minister also directed adviser finance to apprise the people of Pakistan about the current economic situation and the strategy being followed by the government to cope with the challenges.

    Finance Adviser Dr. Abdul Hafeez Sheikh apprised the meeting about the overall state of economy and the philosophy, objectives and considerations for the next budget 2020-2021.

    Dr. Hafeez Sheikh also dilated upon various constraints of economy, especially in wake of corona pandemic, that has obliged the government to further focus on providing incentives to the industry for its revival and growth, cutting unnecessary government expenditure, rationalize subsidies and expedite reform process in critical sectors.

    Various proposals were discussed in detail to stimulate corona-affected economy, especially ensuring greater participation of the private sector in the development process and promoting public-private partnership to complement public sector development program.

  • LTU Karachi auditor awarded ‘removal from service’

    LTU Karachi auditor awarded ‘removal from service’

    ISLAMABAD: Federal Board of Revenue (FBR) has awarded major penalty of ‘removal from service’ on an auditor (BS-18) posted at Large Taxpayers Unit (LTU) Karachi for inefficiency and misconduct.

    A notification issued on Monday, the FBR said that disciplinary proceedings against Ghulam Fareed Pario, Assistant Director (Audit) (BS-18), Large Taxpayers Unit, Karachi were initiated under the Government Servants (Efficiency & Discipline), Rules 1973 on account of Inefficiency and Misconduct for his unauthorized absence from duty.

    The unauthorized absence from duty was borne out of record, the Authorized Officer i.e. Member (Admn) issued a direct Show Cause Notice to the accused.

    The accused officer submitted reply to the show cause notice on September 03, 2019 through email and courier.

    After having examined the relevant record and written defence, the authorized Officer concluded that willful absence from duty of Ghulam Fareed Pario, Assistant Director (Audit) (BS-18) LTU Karachi w.e.f.16.05.2019 stood established and recommended to the Authority for imposition of major penalty of “Dismissal from Service”.

    The Secretary Revenue Division, being the Authority in this case, provided opportunity of personal hearing to the accused on 18.10.2019 which also remained unavailed.

    Now therefore, Secretary Revenue Division, being authority in this case, after having considered all aspects of the case and imposed major penalty of “Removal from Service” upon Ghulam Fareed Pario.

  • FBR starts digital scrutiny of taxpayers’ information

    FBR starts digital scrutiny of taxpayers’ information

    ISLAMABAD: The Federal Board of Revenue (FBR) has established Tax Information Processing Unit (TIPU) for utilization of information available at multiple databases of the tax authorities.

    According to an office order issued on Monday, the FBR had embarked an ambitious plan for enhancing revenues, through efficient utilization power of IT for overall system improvement.

    “There is an emerging need for transforming existing raw data, available in multiple databases of the FBR, into meaningful insights, through which actionable steps may be suggested to field formation with regard to untapped revenue potential and potential leakages,” the FBR said.

    To realize the true potential of IT system, developed over years, it is imperative to engage a cross-functional team of professionals, available in FBR, who may perform following tasks, before generating meaningful insights from the datasets available in its IT systems: data mining; statistical analysis; data analytics; and MIS Reporting.

    The insights gained through data analysis may potentially generate actionable data which IR Operations Wing may convey to field offices, so that untapped revenue potential may be realized and potential leakages may be checked.

    The FBR said that in view of foregoing a cross functional TIPU had been established in IR Operations Wing, FBR manned by FBR’s regular workforce and temporary hiring of IT-experts, on need basis.

    The following officers are designated as domain team of the TIPU, under the supervision of Member IR Operatoins:

    a. Tariq Hussain Shaikh, Chief (IR&I)-Coordinator

    b. Ms. Rezwana Siddiqui, Chief (IR-Analysis)

    c. Zulfiqar Ali Gopang (S.S. IT)

    d. Naveed Afgan (Dy. Dir/Secy MIS)

    e. Syed Asif Jamil (AD/S.S

    f. Imran Ullah (AD-Audit)

    The FBR said that the TIPU would be operated IT experts, who would be hired on market-based salaries. The IT experts would design and develop IT modules, for data analytics.

  • Stock market gains 90 points in mixed trading

    Stock market gains 90 points in mixed trading

    KARACHI: The stock market gained 90 points on Monday in mixed trading activities during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,022 points as against 33,931 points showing an increase of 90 points (+0.3 percent DoD).

    Analysts at Arif Habib Limited said that the market traded in a narrow range today between +131 points and -111 points closing the session +90 points.

    E&P, Banking scrips largely remained positive, whereas Cement, Fertilizer and Pharma stocks faced selling pressure.

    Diminishing prospects of a further rate cut caused investor to shift focus on other sectors.

    Today’s release of CPI data, which came in line with street estimates (8.2 percent for the month of May 2020) hinted that there might not be any rate cut in near future.

    E&P sector got traction from an increase in international crude oil prices, which increased from the levels witnessed on Friday.

    Off board scrips, UNITY, TRG, HUMNL seemed to take pause today, whereas PAEL saw price gains, while trading near upper circuit.

    Technology stocks topped the volumes with 24.6 million shares, followed by Cable (23.5 million) and Banks (16.7 million). Among scrips, PAEL posted highest volumes with 22.7 million shares, followed by UNITY (14.2 million) and FFL (11.4 million).

    Sectors contributing to the performance include Banks (+165 points), E&P (+50 points), Cement (-40 points), Power (-19 points), Insurance (-18 points), Inv Banks (-17 points), Food (-12 points).

    Volumes declined from 233.1 million shares to 198.1 million shares (-15 percent DoD). Average traded value also declined by 29 percent to reach US$ 44.2 million as against US$ 62.4 million.

    Stocks that contributed significantly to the volumes include PAEL, UNITY, FFL, TRG and JSCL, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include MCB (+55 points), UBL (+36 points), OGDC (+34 points), HBL (+26 points) and BAHL (+24 points).

    Stocks that contributed negatively include HUBC (-20 points), LUCK (-17 points), DAWH (-14 points), NESTLE (-12 points), and MARI (-12 points)

  • Headline inflation increases by 8.2 percent in May

    Headline inflation increases by 8.2 percent in May

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) increased by 8.2 percent on year-on-year basis in May 2020 as compared to an increase of 8.5 percent in the previous month and 8.4 percent in May 2019, said Pakistan Bureau of Statistics (PBS) on Monday.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 0.8 percent in the previous month and an increase of 0.6 percent in May 2019.

    CPI inflation Urban, increased by 7.3 percent on year-on-year basis in May 2020 as compared to an increase of 7.7 percent in the previous month and 8.5 percent in May 2019.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 0.7 percent in the previous month and an increase of 0.7 percent in May 2019.

    CPI inflation Rural, increased by 9.7 percent on year-on-year basis in May 2020 as compared to an increase of 9.8 percent in the previous month and 8.3 percent in May 2019.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 1.1 percent in the previous month and an increase of 0.5 percent in May 2019.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 11.0 percent in May 2020 as compared to an increase of 9.3 percent a month earlier and an increase of 9.9 percent in May 2019.

    On MoM basis, it increased by 2.2 percent in May 2020 as compared to a decrease of 1.8 percent a month earlier and an increase of 0.6 percent in May 2019.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 1.5 percent in May 2020 as compared to an increase of 4.9 percent a month earlier and an increase of 16.5 percent in May 2019.

    WPI inflation on MoM basis decreased by 2.1 percent in May 2020 as compared to a decrease of 2.0 percent a month earlier and an increase of 1.2 percent in corresponding month of last year i.e. May 2019.

  • Rupee weakens by 98 paisas on import payment demand

    Rupee weakens by 98 paisas on import payment demand

    KARACHI: The Pak Rupee weakened by 98 paisas against dollar on Monday owing to higher demand for import and corporate payments, dealers said.

    The rupee closed at Rs164.08 to the dollar from last Friday’s close of Rs163.10 in interbank foreign exchange market.

    Currency experts said that the deterioration in rupee value was due to higher demand for import and corporate payments. They said that rupee was remained under pressure due to settlement of import payments after long holidays.

    Further, they said that after ease in lockdown the demand was increasing and importers started purchasing dollars for future buying.

    The currency experts said that fall in exports and remittances also put pressure on the local currency.

    Overseas Pakistani workers sent home $1.790 billion in April, compared with $1.894 billion in previous month.

    Pakistan received $18.781 billion in remittances in July-April FY2020, compared with $17.801 billion in the same period last year.

    However, the experts said that the local currency recovered on the back of improved economic indicators.

  • Bilingual one-page income tax return form advised

    Bilingual one-page income tax return form advised

    KARACHI: Federal Board of Revenue (FBR) has been advised to make one-page simple income tax return form and that should be available in Urdu and English to facilitate taxpayers.

    In its proposals for budget 2020/2021, the Karachi Chamber of Commerce and Industry (KCCI) said that every year changes are made in income tax form and ironically, it becomes more confusing and difficult for the tax-payers to fill.

    It is particularly cumbersome for the Small and Medium Enterprises (SMEs) including individuals and Association of Persons (AOPs).

    The KCCI said that taxpayers have to seek assistance from consultants and pay large amount of fee only to comply with the requirements of tax return.

    Due to the changes every year, tax-payers have to wait for the new form to be issued by the FBR which takes a month or two after the new budget is approved.

    “The complicated form only helps the business of consultants and tax practitioners at the expense of compliant taxpayers,” the KCCI said.

    It is one of the reasons that many individuals prefer to stay out of tax regime and a deterrent to broadening of tax base.

    The Karachi Chamber proposed that separate income tax return forms for companies, AOPs, individuals and salaried class should be created.

    Forms for SMEs and individuals and retailers should be a simple one page form both in English and Urdu.

    Manual completion and filing should be allowed for individuals and SMEs in order to encourage documentation.

    Extreme penalties and charges should be avoided in case of late filing.

    Errors/short payment should be notified to registered person within two months of filing and correction of errors should be allowed to tax-filer for up to 3 months of filing without requirement of commissioner’s approval.

    The chamber said that incorporation of proposal will help in simplification of filing procedures and documentation. Besides it will also help in broadening of tax base and increase in number of filers.

    Further, it will save unnecessary expenses on fees of consultants and tax practitioners. It will eliminate corruption and harassment.

  • All income tax audit selections should bring under one provision

    All income tax audit selections should bring under one provision

    KARACHI: Federal Board of Revenue (FBR) has been urged to eliminate audit selection under various provisions of Income Tax Ordinance, 2001 for the confidence building of taxpayers.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2020/2021 submitted to the FBR, said that presently audit proceedings can be started u/s 177 as well as through balloting u/s 214C and like-wise enquiries can also be made by the Commissioner u/s 122(5A).

    There is a concept of a special audit panel u/s 177(11) as well.

    Sub-Section 7 is ambiguous and provides the Commissioner and his sub ordinates with a tool to harass, extort and victimize any taxpayer at will.

    The Commissioner can reopen the audit of any person or firm at will on unsubstantiated grounds.

    Under sub-Section 4 of Section 177, any person employed by a firm to conduct audit function may be authorized by the Commissioner to exercise powers under sections 175 and section 176.

    The chamber said that the revenue collection through such recovery proceedings is hardly Rs.92 billion whereas the costs due to litigation, involvement of entire tax collection machinery and declining number of tax filers, is far more than the collection.

    Multiple Audits under various provisions have eroded the trust of tax-payers in the FBR. RTOs and LTUs. Audit functions under various provisions have created confusion and complexity in tax regime.

    Such provisions are also prone to misuse and a source of harassment.

    The KCCI proposed that all Audit functions should be brought under one provision of Income Tax Ordinance rather than various over-lapping provisions with clear and well defined parameters.

    Audit Parameters should be transparent and open to taxpayers.

    Further, Sub-Section 7 may be deleted.

    Powers of the Commissioner and sub-ordinate officials should be curtailed to restore the trust of taxpayers and encourage broadening of tax-base.

    Such Audits should be restricted to specific queries or objections and call for relevant document only rather than opening and re-opening a comprehensive audit every time.

    The chamber said that it will bring transparency and clarity to Audit functions and rules governing the same.

    Prevent harassment to tax payers and abuse of powers by Inland Revenue officials. Broaden tax base by restoring confidence in the system.

  • Govt. slashes petroleum prices up to 25 percent

    Govt. slashes petroleum prices up to 25 percent

    ISLAMABAD: The government has reduced up to 25 percent the consumer prices of petroleum products for the month of June 2020.

    A statement on Sunday said that price up to 25 percent or Rs11.88 has been reduced on sale of kerosene oil to Rs35.56 per liter from Rs35.56/liter.

    The rate of light diesel oil has been reduced by Rs9.01 or 19.72 percent to Rs38.14 per liter from Rs47.51 per liter.

    Similarly, price of petrol has been reduced by Rs7.06 or 8.65 percent to Rs74.52 per liter from Rs81.58 per liter.

    However, the price of high speed diesel is remained flat at Rs80.10 per liter with nominal increase of five paisas.

    A statement issued by the finance division said that despite the global trend of increasing prices of the petroleum products, the government has decided to extend further relief in petroleum prices to the public.

    These prices shall be applicable from of June 01, 2020.