Month: November 2020

  • FBR advises taxpayers not to share financial information to fraudulent SMS

    FBR advises taxpayers not to share financial information to fraudulent SMS

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday advised taxpayers not to share their information of credit cards, banks and other financial accounts to fake and fraudulent SMS.

    “FBR does not send SMS to the taxpayers requesting for calling on specific numbers and asking for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts,” the FBR said.

    There are numerous attempts by individuals & groups to solicit personal information from unsuspecting users by employing social engineering techniques.

    Various SMS are crafted to appear as if they have been sent from a legitimate organization or known individual.

    These SMS often attempt to entice users to call at specific mobile numbers and are asked to provide personal information, such as account usernames and passwords, which can further expose them to future compromises.

    FBR never sends SMS on the taxpayer mobile numbers to obtain taxpayer’s banking information in lieu of facilitating a refund to the taxpayer or any other activity associated with an individual’s bank account are extremely dangerous with an intent to defraud the individual.

    FBR strictly advises the taxpayer from calling on the mobile number specified in the SMS and disclosing any information especially related to your bank accounts.

  • Market based exchange rate helps shrinking current account deficit: SBP governor

    Market based exchange rate helps shrinking current account deficit: SBP governor

    KARACHI: Dr Reza Baqir, Governor of State Bank of Pakistan (SBP) has said that market based exchange rate helped shrinking current account deficit.

    In an interactive session with leading foreign investors, members of the Overseas Investors Chamber of Commerce and Industry (OICCI), he shared an overview of the current Economic Outlook of Pakistan and informed: “since, June 2019, Pakistan has transitioned to a market-based exchange rate regime, resulting for the first time ever in an orderly two-way movement of exchange rates in the country, which has led to a significant shrinking of the current account deficit, and better fundamentals facilitated capital inflows.”

    The fiscal deficit narrowed to 3.8 percent of GDP in July-March FY20 with the current account balance in surplus for the first time since 2016”.

    He added: “a year ago SBP was being perceived as inflicting tough stabilization measures after Pakistan had successfully started an economic reform program to address external and fiscal imbalances and later after the onset of COVID-19 the Government and central bank gave a timely and calibrated economic response without compromising buffers and as a result today the focus is on economic growth of the country,” a statement issued by OICCI quoted SBP governor as saying.

    Dr Baqir also shared that overall Rs1.73 trillion or 4.1 percent of the GDP of Pakistan was injected by SBP in the economy to support individuals and businesses during COVID-19 through various proactive measures, including dramatic reduction in interest rates from 13.25 percent to 7 percent, loan deferment, employment support and Rozgar Schemes.

    He further added SBP is taking appropriate and timely actions to address the ever changing economic environment.

    President OICCI, Haroon Rashid highlighted the significant economic contribution of foreign investors at OICCI, who are among the largest economic stakeholders and have invested over $ 16 billion in the past eight years and continue to have a positive view of the opportunities for investment despite the ongoing challenging economic environment in the country.

    OICCI shared with Dr Reza Baqir the key concerns of OICCI members, including delays in approval of forex payments and cumbersome documentation requirements and sought the Governor’s support in the light of SBP policy to facilitate FDI through improving Ease of Doing Business in Pakistan.

    Dr. Reza Baqir appreciated the contribution of OICCI members to the national exchequer and encouraged all members to figure out ways to increase exports and adopt import substitution practices, as it was a critical step towards moving the country out of poverty.

    “SBP is moving towards digitalization of payment processes and proactive engagement that will address the major issues systematically and facilitate the business community,” informed the Governor.

    Dr. Reza also mentioned that through an online case look-up portal, it is now possible for companies to monitor the progress of their respective cases submitted to SBP with increased transparency.

    He agreed on the need for continuous dialogue with the OICCI members and invited the OICCI members to meet the SBP leadership at regular intervals for timely resolution of their issues.

    While concluding the session, Haroon Rashid commented “OICCI members appreciated the SBP efforts towards continuous improvement in the economy”, and presented a comprehensive list of recommendations to facilitate ease of doing business in Pakistan.

  • Stock market gains 369 points on COVID vaccines announcement

    Stock market gains 369 points on COVID vaccines announcement

    The stock market experienced a surge on Tuesday, gaining 369 points amid positive sentiment following an announcement from an international pharmaceutical company regarding a new COVID-19 vaccine.

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  • PSMA, 84 sugar mills served show cause notices for cartelization

    PSMA, 84 sugar mills served show cause notices for cartelization

    ISLAMABAD: The Competition Commission of Pakistan (CCP) on Tuesday said it issued show cause notices to 84 sugar mills and their association for cartelization.

    The CCP said that it had issued show cause notices to Pakistan Sugar Mills Association (PSMA) and its 84 member mills on multiple instances of prima facie cartelization in violation of Section 4 of the Competition Act, 2010.

    The show cause notices have been issued after the CCP decided to initiate proceedings under Section 30 of the Act on the recommendations of an enquiry into the anti-competitive activities in the sugar sector.

    The CCP’s enquiry has found multiple instances where the Pakistan Sugar Mills Association (PSMA) is acting as a front-runner for cartelization in the sugar industry.

    “Evidence gathered during search and inspections conducted on the premises of PSMA and JDW Sugar Mills seems to suggest these anti-competitive activities have continued since 2010.”

    The impounded data included exchange of emails between a senior official of one of the Sugar Mill (Member of PSMA) and PSMA Punjab zone office bearers regarding sensitive commercial information such as mill-wise, district-wise sugar stock position, and even the quantity of cane crushed, sugar produced, recovery percentage, carry forward old/raw sugar, total sugar, quantity sold, balance and sold percentage.

    “Moreover, an analysis of the WhatsApp messages exchanged in a group of PSMA officials, the same senior official of that Sugar Mill was found to be in constant communication with regard to price and stock related data of sugar mills.

    “The impounded data indicated the senior official’s continued involvement in sharing/receiving sensitive information regarding sugar industry since 2012 when he was nominated as the focal person for coordinating the sugar stock position by PSMA,” the CCP said.

    Furthermore, the PSMA’s platform was also being used by member sugar mills to collectively make commercially sensitive decisions such as reduction in domestic stocks/supplies of sugar, which led to an increase in or maintenance of desired price levels in the relevant market.

    PSMA and its members have been provided an opportunity of hearing to plead their case with reference to the prima facie specific violations indicated therein.

    PSMA and all 84 sugar mills prima facie violated the Act by collectively deciding to export sugar and thereby fixing the quantities of sugar to be supplied in Pakistan.

    Similarly, they also violated the Act by reducing stocks of sugar through exports; hence collectively raised and maintained prices of sugar in Pakistan.

    Moreover, in the crushing season 2019-20, 15 sugar mills in Punjab under the auspices of PSMA, collectively decided to delay crushing of sugarcane leading to reduction in quantity supplied in the market.

    In Punjab, 45 sugar mills used PSMA’s platform to share business sensitive information with each other.

    Lastly, PSMA and sugar mills divided quantities of sugar in tenders issued by USC on various occasions.

    “The CCP found 19 mills in Punjab to have violated the Act with reference to a tender dated 2019 whereas, 30 mills from all over Pakistan have been issued show cause for an earlier tender.”

    The findings of CCP’s previous sugar enquiry report in 2009 had found that PSMA and its members had engaged in fixing of prices and collusion in the purchase of sugarcane, production of sugar, and sale or trade of sugar.

    In the instant matter it appears that PSMA and its member mills sought to keep prices stable, inter alia, by controlling supply of sugar available in the domestic market.

  • Rupee advances by 22 paisas; dollar slips to Rs158.69

    Rupee advances by 22 paisas; dollar slips to Rs158.69

    KARACHI: The Pak Rupee gained 22 paisas against dollar on Tuesday owing improved remittances and export receipts.

    The rupee ended Rs158.69 to the dollar from previous day’s closing of Rs158.91 in interbank foreign exchange market.

    The currency dealers said that importers were cautious in placing new orders due to the second wave of coronavirus across the glob.

    They further said that the inflows of export receipts and workers’ remittances are helping the local unit to improve levels.

    The rupee hit an all-time low of Rs168 on August 26, 2020.

    According to Pakistan Bureau of Statistics (PBS) the exports during the month of October 2020 increased by 3.07 percent to $2.08 billion as compared with $2.02 billion in the same month of the last year.

    Imports for the month fell by 5.73 percent to $3.82 billion as compared with $4.05 billion in the same month of the last year.

    The trade deficit reduced by 14.46 percent to $1.74 billion in October 2020 as compared with a trade deficit of $2.03 billion in the same month of the last year.

  • Pakistan urgently needs solar, wind energy expansion to lower power cost: WB

    Pakistan urgently needs solar, wind energy expansion to lower power cost: WB

    ISLAMABAD: The World Bank (WB) on Tuesday launched a study suggesting that Pakistan should quickly implement a major scale-up of solar and wind generation.

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  • FBR warns return filers against incorrect information

    FBR warns return filers against incorrect information

    ISLAMABAD: Federal Board of Revenue (FBR) has warned individuals, who are return filers, against harsh action for providing incorrect information of taxable income.

    The FBR on Tuesday said that it had acquired vital information about the income and expenditure of filers and non-filers.

    The revenue board advised return filers to visit the official information portal to view details of undeclared income and assets details available with the database of the FBR.

    The FBR also advised the return filers to correct their information before any action under the law was initiated against individuals for hiding taxable income.

    The FBR said that income tax return filing is mandatory to those persons who had obtained National Tax Number (NTN). Therefore, such persons should file their returns to avoid penal action.

    The FBR asked unregistered paying withholding tax should also apply for registration and file their income tax return.

    It is important to note that the last date for filing income tax returns for the tax year 2020 is December 08, 2020. The date was already extended by the FBR from September 30, 2020.

    The FBR made it clear that no further extension would be granted beyond December 08, 2020.

  • KCCI urges shopkeepers to strictly ensure coronavirus SOPs

    KCCI urges shopkeepers to strictly ensure coronavirus SOPs

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged shopkeepers to ensure strict compliance of SOPs and business timings to prevent spread of coronavirus.

    A statement issued on Monday said that KCCI president M. Shariq Vohra, after listening to the reservations raised by a delegation from All City Tajir Ittehad (ACTI), assured that KCCI would try its level best to make sure that no injustice is done to any shopkeeper even if the government opts another lockdown or smart lockdown in any market of Karachi to contain further spread of COVID-19 pandemic.

    “However, the shopkeepers must strictly ensure compliance of SOPs and also the business timings, besides devising effective strategies for social distancing as coronavirus, which is a matter of life and death, has to be taken seriously,” he added.

    Exchanging views with ACTI delegation which was led by its President Hammad Poonawala, President KCCI said that KCCI was in constant touch with the government and was closely eyeing numerous strategies being adopted to control coronavirus pandemic.

    Hence, any issue being faced by small traders/ shopkeepers must be brought to KCCI’s notice so that the same could be immediately taken up with relevant departments and amicably resolved. “KCCI would always advocate those strategies which are devised to not only save precious lives but also ensure minimum losses to business community during the ongoing most difficult and extraordinary situation.”

    Senior Vice President KCCI M. Saqib Goodluck, Vice President KCCI Shamsul Islam Khan, Chairman KCCI’s Special Committee for Small Traders Majeed Memon, Chief Police Chamber Liaison Committee Hafeez Aziz, Managing Committee Members, ACTI’s District-wise Presidents and representatives from various commercial markets of Karachi also attended the meeting.

    Keeping in view the developing situation and the fears of imposition of another lockdown, President KCCI advised representatives of numerous associations from commercial markets of Karachi to stay calm, improve liaison with KCCI and unite under the Chamber’s platform so that one voice could be raised for getting numerous issues resolved and the likely grievances, if not completely eradicated, could be minimized.

    He said, “It is high time that small traders and shopkeepers must change their mindset and start opening their businesses early morning which would certainly minimize the grievances being faced by them at the end of permitted business timings.

    “Shops and markets all over the world open early and close down in the evening which must also be adopted here as our religion also teaches us the same.”

    Responding to numerous complaints in which shopkeepers complained about harassment by police and customs officials, he advised that any complaint pertaining to harassment by customs officials must immediately be brought to KCCI’s notice so that the same could be taken up at the higher level.

    “The higher authorities are usually unaware of such wrongdoings being done by the officers at lower level as it has been observed that all such complaints are instantly resolved when brought to the notice of higher officials.”

    “The Karachi Chamber would invite IG Sindh soon so that the harassment-related problems being suffered by small traders could be resolved”, he assured.

    President KCCI advised small traders to become KCCI members which was the most vibrant platform for resolving all types of issues including the law & order, customs and taxation related issues as KCCI’s Subcommittees have been maintaining close liaison with all the departments which helps in swift resolution of relevant issues.

    Speaking on the occasion, President ACTI Hammad Poonawala appreciated KCCI for always promptly taking up the issues of small traders and shopkeepers under the supervision of Chairman BMG Siraj Kassam Teli.

    He pointed out that shopkeepers were nowadays fearing another lockdown or smart lockdown which, if imposed, would prove completely destructive for small businesses. “Hence, KCCI must play the lead role in convincing the government to refrain from imposing another lockdown and we will ensure strict compliance of all SOPs. In this regard, a committee should be formed by KCCI to look into the problems being suffered by small traders who have been facing a lot of hardships every day because of harassment and demand for Bhatta.”

    ACTI delegation also expressed deep concern over dilapidated condition of roads in Shershah market and other important markets of Karachi which were terribly affecting trade and commercial activities. Although assurances have been given from time to time but no development work has been initiated so far and the roads continues to worsen day by day. 

    They further complained that in order to demand bribes, policemen, traffic police officers and customs officials intercept their legal consignments with an excuse to check presence of any illicit product. Even if all the legal documents are presented and the consignment is not carrying any banned item, they do not release it until the demand for bribe is fulfilled. To deal with this serious issue, KCCI was requested to invite IG so that the business community could record their protest and formally request strictest action against such corrupt practices.

  • Sales tax rates on services provided by freight forwarders, customs agents, others

    Sales tax rates on services provided by freight forwarders, customs agents, others

    KARACHI: Sindh Revenue Board (SRB) has issued updated rate of sales tax on services provided by customs agents, freight forwarders and persons authorized to transact business on behalf of others.

    The SRB issued working tariff updated on November 01, 2020 for implementation of sales tax rates on services rendered or provided within Sindh province.

    Following are the services and rate of sales tax:

    Shipping agents: 13 percent

    Stevedores: 13 percent

    Ship management service: 13 percent

    Freight forwarders: 13 percent

    However, a fixed rate of Rs500 per bill of lading or house bill of lading is also available on:

    (i) services provided by freight forwarding agents in respect of issuance of bills of lading or house bills of lading.

    (ii) input tax credit shall not be admissible.

    Customs agents: 13 percent

    Travel agents: 13 percent;

    A reduced rate of five percent is also available with condition that input tax credit shall not be admissible.

    Tour operators: 13 percent;

    A reduced rate of five percent is available with condition that input tax credit adjustment shall not be allowed;

    Further services provided or rendered by tour operators in relation to Hajj and Umrah tour services are exempted from the levy.

    Recruiting agents: 13 percent;

    A reduced rate of 8 percent is available on:

    (i) recruiting agents who is stand-alone service provider and whose principal economic activity is related to recruitment of individuals or group of individuals for overseas employment in countries outside Pakistan.

    (ii) Input tax credit adjustment shall not be admissible.

    Advertising agents: 13 percent

    Ship chandlers: 13 percent

    Share transfer agents: 13 percent

    Sponsorship services: 13 percent

    Business support services: 13 percent

  • Share market gains 52 points in range bound trading

    Share market gains 52 points in range bound trading

    The Pakistan Stock Exchange (PSX) witnessed a modest gain of 52 points on Monday, with the benchmark KSE-100 index closing at 40,784 points, up from the previous day’s close of 40,732 points. The day’s trading was characterized by a range-bound session, with the index fluctuating between a high of +212 points and a low of -135 points.

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