Pkrevenue.com

Month: August 2020

  • NBP makes payment realization mandatory for goods clearance; FPCCI fears delays

    NBP makes payment realization mandatory for goods clearance; FPCCI fears delays

    KARACHI: Payment realization against financial instruments has been made mandatory for clearance of imported goods from August 10, 2020.

    In this regard National Bank of Pakistan (NBP) has issued necessary instructions to its branches receiving duty and taxes, customs clearing agents and other stakeholders.

    While referring to Federal Treasury Rules, the NBP said that it had observed the custom authorized branches of the bank after the introduction of WeBOC system were not adhering to the rules and Goods Declarations (GDs) were being issued against collection of clearing instruments.

    “A further clarification regarding the issue has also been take from State Bank of Pakistan (SBP), and the central bank had also advised to enforce Federal Treasury Rule 79 (1) (a),” the bank said.

    The NBP issued instructions to all its branches to ensure that only preliminary acknowledgement of the receipt of the cheque / payment order should be given on the prescribed form at the time of receipt of clearing instrument. “Posting in WeBOC and issuance of GD will be subject to clearing.”

    Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement on Saturday expressed its concerns over the instructions issued by the NBP and said it would cause unnecessary delays for clearance of consignments and also increase cost in terms of port charges.

    Chairman of FPCCI’s Committee on Customs Shabbir Mansha said that for the past 70 years a system for payment of duty and taxes was operational.

    The sudden change in procedure will cause delay of consignment clearance and business community will pay additional charges for procedural delays.

    He surprised over the implementation of revised procedure especially at a time when trade was badly hampered due to COVID pandemic.

    “The payment procedure will affect international trade and a bulk of containers will be stuck up at ports,” he added.

    He said that the revised procedure was not practical because fluctuation in exchange rate was routine matter in the country. He said that importer make payment through financial instrument on the basis of prevailing of exchange rate and as per revised procedure the on the date of payment realization the exchange rate may be vary on the date of submission of the financial instrument. “In such a scenario the customs authorities will demand payment order for the exchange rate differential amount, he added.

    He lamented that in revised scenario the importer would face huge demurrage and detention charges despite duty and taxes paid through payment order.

    The FPCCI urged Prime Minister of Pakistan and State Bank of Pakistan to intervene into the matter and defer the implementation of revised payment mechanism.

  • FBR notifies major reshuffle; 43 BS-19-21 IR officers transferred

    FBR notifies major reshuffle; 43 BS-19-21 IR officers transferred

    ISLAMABAD: Federal Board of Revenue (FBR) on Saturday notified major reshuffle of senior Inland Revenue officers and transferred/posted 43 officers of BS-19 to BS-21 with immediate effect and until further orders.

    The following officers have been transferred and posted in the latest reshuffle:

    01. Mrs. Attiya Naheed Hakeem (Inland Revenue Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, Regional Tax Office, Islamabad.

    02. Malik Amjad Zubair Tiwana (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (IP/TFD/HRM) Large Taxpayers Unit, Islamabad.

    03. Syeda Naureen Zahra (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-VI) Corporate Regional Tax Office, Lahore from the post of Commissioner, (Zone-II) Corporate Regional Tax Office, Lahore.

    04. Muhammad Irfan Raza (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Internal Audit (Inland Revenue), Lahore from the post of Commissioner, (Zone-VI) Corporate Regional Tax Office, Lahore.

    05. Muzaffar Ali Soomro (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Law, Karachi from the post of Commissioner, (WHT) Regional Tax Office, Quetta.

    06. Amjad Farooq (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Audit-I) Large Taxpayers Unit, Lahore from the post of Commissioner, (Zone-II) Large Taxpayers Unit, Lahore.

    07. Muhammad Azhar Ansari (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Special Zone Builders and Developers) Large Taxpayers Unit-II, Karachi from the post of Commissioner, (Zone-III) Large Taxpayers Unit-II, Karachi.

    08. Sajjad Akbar Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Audit-II) Large Taxpayers Unit, Karachi from the post of Commissioner, Inland Revenue (Appeals-I), Karachi.

    09. Zafar Iqbal Khan (Inland Revenue Service/BS-20) has been transferred and posted as Director, (HQ) Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad from the post of Commissioner, (Corporate Zone) Regional Tax Office, Rawalpindi.

    The officer is also assigned the additional charge of the post of Director, Intelligence & Investigation (IR), Islamabad till the posting of a regular incumbent.

    10. Muhammad Jamil Bhatti (Inland Revenue Service/BS-20) has been transferred and posted as Director-I, Directorate of Law, Lahore from the post of Commissioner, Inland Revenue (Appeals-III), Lahore.

    11. Abdul Rehman Bullo (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-III) Large Taxpayers Unit-II, Karachi from the post of Commissioner, (IP/TFD/HRM) Large Taxpayers Unit-II, Karachi.

    12. Zahoor Ahmad Panwar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-II) Corporate Regional Tax Office, Karachi from the post of Commissioner, (Zone-II) Regional Tax Office, Hyderabad.

    13. Ms. Mufeeza Iqbal (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-V) Corporate Regional Tax Office, Lahore from the post of Director, Directorate General of Training & Research (Inland Revenue), Lahore.

    14. Dr. Tariq Ghani (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Internal Audit (Inland Revenue), Karachi from the post of Chief, (Management) Federal Board of Revenue (Hq), Islamabad.

    15. Ms. Sumbal Agha (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Legal) Large Taxpayers Unit, Lahore from the post of Commissioner, (Zone-I) Large Taxpayers Unit, Lahore.

    16. Aftab Alam (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Enforcement) Large Taxpayers Unit, Lahore from the post of Director, Directorate General of Training & Research (Inland Revenue), Lahore.

    17. Imran Munir (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-III) Corporate Regional Tax Office, Lahore from the post of Commissioner, Inland Revenue (Appeals-II), Lahore.

    18. Ms. Asma Aftab (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Audit-I) Large Taxpayers Unit, Karachi from the post of Commissioner, (IP/TFD/HRM) Large Taxpayers Unit, Karachi.

    19. Qazi Hifzur Rehman (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Audit-III) Large Taxpayers Unit, Karachi from the post of Commissioner, (Zone-II) Large Taxpayers Unit, Karachi.

    20. Syed Shakeel Ahmad (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Legal) Large Taxpayers Unit, Karachi from the post of Commissioner, Corporate Regional Tax Office, Karachi.

    21. Abdul Hameed (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, Inland Revenue (Appeals-II), Islamabad.

    22. Ms. Ayesha Imran Butt (Inland Revenue Service/BS-20) has been transferred and posted as Director-II, Directorate of Law, Lahore from the post of Commissioner, Inland Revenue (Appeals-VII), Lahore.

    23. Faisal Rauf Memon (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation (Inland Revenue), Hyderabad from the post of Commissioner, (Zone-V) Large Taxpayers Unit, Karachi.

    24. Imtiaz Ahmad (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-II) Corporate Regional Tax Office, Lahore from the post of Commissioner, (Zone-IV) Large Taxpayers Unit, Lahore.

    25. Zafar Rafiq Siddiqui (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Corporate Regional Tax Office, Karachi from the post of Commissioner, (Zone-V) Corporate Regional Tax Office, Karachi.

    26. Muhammad Ali (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-VI) Corporate Regional Tax Office, Karachi from the post of Commissioner, (Zone-I) Regional Tax Office III, Karachi.

    27. Ms. Shabana Mumtaz (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Legal) Large Taxpayers Unit, Islamabad from the post of Commissioner, (West Zone-III) Regional Tax Office, Islamabad.

    28. Shabih-ul-Aijaz (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Audit-II) Large Taxpayers Unit, Lahore from the post of Commissioner, (Zone-III) Large Taxpayers Unit, Lahore.

    29. Zulfiqar Ali Syed (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Enforcement-II) Large Taxpayers Unit, Karachi from the post of Commissioner, (Zone-I) Large Taxpayers Unit-II, Karachi.

    30. Muhammad Javaid Badar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, Inland Revenue (Appeals-II), Faisalabad.

    31. Ejaz Ahmad Bajwa (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Management) Federal Board of Revenue (Hq), Islamabad from the post of Chief, (Chief Transfer Pricing Unit) Federal Board of Revenue (Hq), Islamabad.

    32. S. Jaffar Raza Kazmi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-V) Corporate Regional Tax Office, Karachi from the post of Commissioner, (WHT) Regional Tax Office, Sukkur.

    33. Jamshed Fakhri Dahir (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate General of Training & Research (Inland Revenue), Lahore from the post of Commissioner, (Zone-III) Large Taxpayers Unit, Islamabad.

    34. Girdhari Mal Maghwar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Transfer Pricing Unit) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (Zone-III) Large Taxpayers Unit, Karachi.

    35. Pir Khalid Ahmed Qureshi (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Federal Board of Revenue (Hq), Islamabad from the post of Director, Directorate of Intelligence & Investigation (Inland Revenue), Hyderabad.

    36. Zia Agro (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Audit-I) Large Taxpayers Unit, Islamabad from the post of Commissioner, (Zone-I) Large Taxpayers Unit, Karachi.

    37. Naeem Hassan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Audit-II) Large Taxpayers Unit, Islamabad from teh post of Commissioner, (Zone-IV) Large Taxpayers Unit, Islamabad.

    38. Abdul Waheed Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Enforcement) Large Taxpayers Unit, Islamabad from the post of Commissioner, (East Zone-II) Regional Tax Office, Islamabad.

    39. Abdul Hafeez (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Large Taxpayers Unit-II, Karachi from the post of Commissioner, (Special Zone for Builders and Developers) Large Taxpayers Unit-II, Karachi.

    40. Hammal Baloch (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-IV) Large Taxpayers Unit-II, Karachi from the post of Commissioner, (Zone-III) Regional Tax Office III, Karachi.

    41. Abdul Hameed Shaikh (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Enforcement-I) Large Taxpayers Unit, Karachi from the post of Commissioner, (Zone-I) Corporate Regional Tax Office, Karachi.

    42. Muhammad Saleem (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (OPS) (HRM) Regional Tax Office, Multan.

    43. Bashir Ahmed Kalwar (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (OPS) Regional Tax Office, Sukkur.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR updates withholding tax rates for income from property

    FBR updates withholding tax rates for income from property

    ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax on rental income from immovable properties for tax year 2021.

    The FBR updated the withholding tax card 2020-2021 after incorporating amendments to Income Tax Ordinance, 2001 made through Finance Act, 2020.

    The FBR said that every prescribed persons as per Section 155 of Income Tax Ordinance, 2001 shall collect / deduct withholding tax from recipient of rent of immovable property at the time the rent is actually paid.

    Section 155: Income from Property

    Any payment made on account of rent of immovable property

    (A) In case of individual or AOP

    1. Where the gross amount of rent does not exceed Rs, 200,000: the tax rate shall be zero

    2. Where the gross amount of rent exceeds Rs, 200,000 but does not exceed Rs, 600,000: 5 percent of the gross amount exceeding Rs, 200,000

    3. Where the gross amount of rent exceeds Rs, 600,000 but does not exceed Rs, 1,000,000: Rs, 20,000+10 percent of the gross amount exceeding Rs, 600,000

    4. Where the gross amount of rent exceeds Rs, 1,000,000 but does not exceed Rs, 2,000,000: Rs,60,000+15 percent of the gross amount exceeding Rs, 1,000,000

    5. Where the gross amount of rent exceeds Rs, 2,000,000 but does not exceed Rs. 4,000,000: Rs, 210,000+20 percent of the gross amount exceeding Rs, 2,000,000

    6. Where the gross amount of rent exceeds Rs.4,000,000 but does not exceeds Rs. 6,000,000: Rs.610,000 plus 25 per cent of the gross amount exceeding Rs.4,000,000

    7. Where the gross amount of rent exceeds Rs.6,000,000 but does not exceeds Rs. 8,000,000: Rs.1,110,000 plus 30 per cent of the gross amount exceeding Rs.6,000,000

    8. Where the gross amount of rent exceeds Rs.8,000,000: Rs.1,710,000 plus 35 percent of the gross amount exceeding Rs.8,000,000

    B) in case of company: 15 percent

    The tax shall be adjustable against total tax liability.

  • Weekly Review: market likely stay positive as lockdown ends

    Weekly Review: market likely stay positive as lockdown ends

    KARACHI: The stock market likely stay positive during next week as smart lockdown is officially ending from Monday August 10, 2020, analysts said.

    Analysts at Arif Habib Limited said that the market to remain positive in the upcoming week. With smart lockdown officially ending on Monday, investor sentiment is set to be positive, although this remains contingent upon containment of COVID-19 cases.

    Furthermore, Pak Rupee is expected to remain stable against the USD given augmenting reserves. Moreover, with continuing result season, certain sectors and scrips are expected to stay under limelight.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.2x (2021) compared to Asia Pac regional average of 13.5x and while offering DY of ~6.2 percent versus ~2.7 percent offered by the region.

    The market commenced on a positive note given further decline in COVID-19 cases post Eid ul Adha. However, bears took over after higher than expected inflation of 9.30 percent was reported.

    Although this was short lived as the market rebounded the very next day amid release of cement offtake data for Jul’20, depicting a stunning jump of 41 percent YoY followed by decline in trade deficit (by 15 percent YoY in Jul’20) and surge in SBP’s foreign reserves (by USD 567 million on weekly basis).

    Moreover, approval of key projects (ML-1 Railway upgradation worth PKR 11.44 trillion under CPEC by ECNEC along with 4 projects by CDWP worth PKR 16.1 billion) kept the momentum strong. The market closed at 40,030 points, up by 772 points (+2 percent) WoW.

    Foreign buying this week clocking-in at USD 3.7 million compared to a net sell of USD 9.7 million last week. Buying was witnessed in Fertilizer (USD 2.2 million) and Cement (USD 2.0 million). On the domestic front, major selling was reported by Insurance Companies (USD 29.4 million and Mutual Funds (USD 11.9 million). Average volumes settled at 638 million shares (up by a massive 64 percent WoW) while average value traded clocked-in at USD 145 million (up by 43 percent WoW).

  • Withholding income tax rates for exporters updated

    Withholding income tax rates for exporters updated

    ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding income tax rates for exporters for tax year 2021.

    The FBR updated withholding tax card for 2020/2021 after incorporating amendments made to Income Tax Ordinance, 2001 brought through Finance Act, 2020.

    Under Section 154 of Income Tax Ordinance, 2001 every authorized dealer in foreign exchange required to collect / deduct withholding tax from exporters at the time of realization of the export proceeds.

    The withholding tax rate under Section 154(1) shall be one percent of the gross value.

    The tax shall be final.

    Under Section 154(2) every authorized dealer in foreign exchange is required to collect/deduct withholding tax from non-export indenting agent, export indenting agent/export buying house at the time of realization of foreign exchange proceeds or indenting commission.

    The tax rate under this section shall be on realization of proceeds on account of commission to;

    I. Non-export indenting agent: 5 percent of gross value

    II. Export indenting agent / export buying house: 5 percent of gross value

    The tax shall be final tax liability.

    Under Section 154 (3), every banking company is required to collect/deduct tax from exporters at the time of realization of proceeds on account of sale of goods to an exporter.

    The tax rate shall be one percent on realization of proceeds on account of sale of goods to an exporter under inland back to back LC or any other arrangement as may be prescribed by FBR.

    The tax shall be final tax liability.

    Under Section 154 (3A), Export Processing Zone (EPZ) authority is required to collect / deduct withholding tax from industrial undertaking located in the export processing zone at the time of export of goods.

    The tax rate shall be one percent and this is final tax liability.

    Under Section 154(3B), direct exporters/export house registered under DTRE Rules 2001 required to collect/deduct withholding tax from indirect exporters (defined under sub-chapter 7 of the chapter XII of the Customs Rules, 2001) at the time of payment against a firm contract.

    The tax rate is one percent of the gross value and it is final tax liability.

    Under Section 154(3C), the collector of customs is required to collect withholding tax at one percent from exporter of goods at the time of export of goods. This tax shall be final tax liability.

  • Rupee gains 25 paisas against dollar

    Rupee gains 25 paisas against dollar

    KARACHI: The Pak Rupee gained 25 paisas against dollar on Friday owing to improved foreign exchange reserves of the country.

    The rupee ended Rs167.88 to the dollar from previous day’s closing of Rs168.13 in interbank foreign exchange market.

    Currency experts said that the rupee made recovery for second consecutive day owing to improved inflows of the foreign currency.

    The liquid foreign exchange reserves of the country increased by $651 million by week ended July 30, 2020 owing to foreign inflows.

    The total foreign exchange reserves of the country increased by $651 million to $19.563 billion by week ended July 30, 2020 as compared with $18.912 billion a week ago.

    The official foreign exchange reserves of the SBP increased by $566 million to $12.542 billion by week ended July 20, 2020 as compared with $11.976 billion a week ago.

  • Gold price reaches all time high at Rs132,000/Tola

    Gold price reaches all time high at Rs132,000/Tola

    KARACHI: The price of gold has reached to all time high at Rs132,000 per Tola in the local market, traders said on Friday.

    The traders said that the price of one tola gold increased by Rs2500 to reach all time high of Rs132,000. One toal is measured at 1 kilogram is equal to 80 tola.

    The price of gold for 10 grams also increased by Rs2144 to reach at Rs113,169 according to Sarafa Bazar Karachi.

    The traders attributed the hike in price to increase in international price of bullion. In international market the gold increased by $4 to reach at $2054 per ounce.

    The traders said that in the local market people were investing in the gold.

  • Share market witnesses selling, index falls by 136 points

    Share market witnesses selling, index falls by 136 points

    KARACHI: The share market of Pakistan Stock Exchange (PSX) experienced a wave of selling pressure on the final trading day of the week, with the benchmark KSE-100 index falling by 136 points. The market closed at 40,030 points, down from 40,166 points.

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  • FBR to get information of banking deposits, payments, profit on debt

    FBR to get information of banking deposits, payments, profit on debt

    ISLAMABAD: Federal Board of Revenue (FBR) to obtain information of deposits, payments and profit on debt of account holders from banking companies.

    According to news rules proposed through SRO 686(I)/2020 issued a day earlier, to be inserted into Income Tax Rules, 2020, the banks shall be required to furnish information in the manner as specified in account holders’ deposits statement, credit card payments statements, cash withdrawal statement and profit on debt statement.

    The new draft rules the FBR notified four different forms to obtain information of deposits, withdrawals, payment through credit cards and persons receiving profit on debt.

    The rules would help in obtaining information from banks under Section 165A of Income Tax Ordinance, 2001

    As per the amendment the banks shall provide information included: a list of persons containing particular of cash withdrawal aggregating to Rs one million or more during a month; list of persons depositing Rs10 million or more in a month; persons making payment through credit/debit card above Rs250,000 in a month.

    Under the new rules, the banks shall provide details of persons making deposits, withdrawal included: CNIC/NTN, name, address, account opening date, IBAN, resident/non-resident status etc.

    Under the new rules the banks shall be required to provide such information of deposits, withdrawal and payment through credit/debit cards on a monthly basis.

    However, the information of recipients of profit on debts shall be furnished within three months from the end of the financial year.

  • Authorities made duty bound to allow real-time access: FBR

    Authorities made duty bound to allow real-time access: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has said that after amendments made to sales tax and federal excise laws various authorities and organizations have been made duty bound to allow real-time access to tax authorities for preventing tax evasion.

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