KARACHI: The collection of advance tax from the registration of new motor vehicles recorded a remarkable growth of 62 percent during the first half (July–December) of the current fiscal year (1HFY21), reflecting a rebound in economic activity and renewed demand in the automobile sector.
(more…)Day: January 19, 2021
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SBP to review 7pc policy rate on January 22
KARACHI: The State Bank of Pakistan (SBP) on Tuesday said that it will review the existing key policy rate at 7 percent on January 22, 2021.
The SBP said that the Monetary Policy Committee of the SBP will on Friday, January 22, 2021 at SBP Karachi to decide about Monetary Policy.
Governor State Bank of Pakistan, Dr. Reza Baqir, will give a press conference on the same day after the MPC meeting.
The SBP in its MPC meeting on November 23, 2020 decided to maintained policy rate at 7 percent.
The SBP decided to maintain policy rate noted that since the last meeting in September, the domestic recovery has gradually gained traction, in line with expectations for growth of slightly above 2 percent in FY21, and business sentiment has improved further.
Nevertheless, there are risks to the outlook. The recent rise in Covid cases in Pakistan and many other countries presents considerable downside risks.
On the upside, while it could take some time to fully implement worldwide, there has been recent encouraging news on vaccine development.
On the inflation front, recent out-turns have been on the higher side, primarily due to increases in food prices. However, these supply-side pressures are likely to be temporary and average inflation is expected to fall within the previously announced range of 7-9 percent for FY21.
Taken together, risks to the outlook for both growth and inflation appear balanced.
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KCCI demands immediate release of income tax refunds
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged the Federal Board of Revenue (FBR) to immediately release pending income tax refund claims of small traders, shopkeepers and the SMEs.
The claims of around Rs50,000 to Rs100,0000, whose assessment has been completed should be released on top priority, Chairman Businessmen Group (BMG) and Former President KCCI said in a statement on Tuesday.
“Blocking such refunds oppresses small businesses which continue to face serious cashflow problems. We have no idea how long the COVID-19 pandemic would last and it is a well-known fact that almost every household is a victim of this pandemic therefore, the government will have to provide relief as it is totally uncertain where the businesses will land up in the days to come”, he added while speaking at a meeting of Small Traders held at KCCI.
The meeting was also attended by General Secretary BMG AQ Khalil, President KCCI M. Shariq Vohra, Senior Vice President KCCI M. Saqib Goodluck, Vice President KCCI Shamsul Islam Khan, Chairman of KCCI’s Special Committee for Small Traders Majeed Memon, Former Senior Vice Presidents Javed Bilwani and Muhammad Ibrahim Kasumbi, Former Vice President Talat Mehmood and KCCI Managing Committee Members along with representatives of several commercial markets from all over Karachi.
Chairman BMG stressed that the government will have to bring in major changes in the taxation system and it also needs to devise effective mechanism to minimize the hardships of small traders as although big businesses may survive but the small ones need support as they have no access to financing facilities and have also lost all their savings while battling with the situation triggered by the pandemic. “SMEs and shopkeepers are the worst sufferers of the COVID-19 pandemic who must not be undermined and given relief.”
He also stressed the need to resolve CNIC issue which was creating a lot of problems for the already perturbed businessmen who were compelled to run their businesses with limited timings and were strictly advised to comply with all the SOPs for containing COVID-19 pandemic which has resulted in creating a troublesome situation for small traders by raising the costs and lowering the earnings.
In response to concerns expressed over the imposition of municipal tax, he said that President KCCI has already taken up the municipal tax issue and was strictly pursuing the same so that the grievances faced by small traders could be minimized. Moreover, the Karachi Chamber was also closely monitoring the relocation of displaced shopkeepers whose premises were razed during the anti-encroachment drive. “These shopkeepers must be provided adequate alternate place for business and we are seriously working on it”, he assured.
Chairman BMG said the problems confronted by small traders will always be given top priority by the leadership of Businessmen Group and sitting office bearers of the Karachi Chamber who would keep on raising a strong voice and make all out efforts to get the issues resolved.
Zubair Motiwala, while recalling his journey with Late Siraj Kassam Teli, said that the vacuum created after the sad demise of late Siraj Teli cannot be filled by anyone but he along with all Vice Chairmen BMG and General Secretary BMG would try their level best to come up to the expectations of the entire business & industrial community, particularly the small traders who play the role of backbone in the economy. “We always spoke vocally about your issues and would continue to do so in future as well with same zeal and enthusiasm. KCCI would move forward hands-in-hands and its doors will always remain open for small traders while the policies introduced by Late Siraj Teli will remain intact and any inevitable change in these policies would only take place after consultation.”
Speaking on the occasion, President KCCI M. Shariq Vohra said that the small traders were the assets of KCCI and the Chamber fully realizes their significance. KCCI’s role is to facilitate and support the business community in dealing with numerous government related matters and pave way for the progress and prosperity of small traders. “This is our job and we will remain unshakable until numerous issues are amicably resolved”, he added.
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Stock market gains 177 points amid range bound trading
The Pakistan stock market witnessed a modest gain of 177 points amid range-bound trading activities, with the benchmark KSE-100 index closing at 45,903 points, up from the previous day’s close of 45,726 points.
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Meezan Bank announces direct payment integration with VISA Card
KARACHI: Meezan Bank Limited has announced direct integration for routing settlement of Visa card transactions.
A statement on Tuesday said the shift comes in continuation with its direct integration with Mastercard last year, bringing the bank a step closer to its goal of transforming its customers’ payment experience, enabling faster and more seamless transactions.
Meezan Debit Card users will continue to enjoy the Visa and Mastercard benefits while allowing the Bank to offer faster settlements and reducing friction in payments.
Shariq Mubeen, Head of Alternate Distribution Channels, said: “The bank always endeavors to provide the best transaction experience to its customers.
“Direct integration with Global Payment Schemes not only allows us to remove an additional hop in transaction processing but it also makes detailed view of each transaction available to the bank for more efficient management of cards portfolio.
“We are excited with this development and look forward to various others significant improvements in our IT infrastructure and platforms to support the growing business of the Bank.”
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Rupee weakens by nine paisas against dollar
KARACHI: The Pak Rupee weakened by 9 paisas against the dollar on Tuesday owing to demand for import and corporate payments, dealers said.
The rupee ended Rs160.61 to the dollar form last day’s closing of Rs160.52 in the interbank foreign exchange market.
The dealers said that the rupee weakened owing to dollar demand for import and corporate payments.
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Pakistan improves ranking by 31 positions in ease of trading across border index: FBR
ISLAMABAD: Pakistan has improved its ranking by 31 positions (from 142nd to 111th) on the rank of trading across border index, according to a statement issued by the Federal Board of Revenue (FBR) on Tuesday.
The FBR made trading across borders easier by focusing three crucial areas: enhancing the integration of various agencies in the Web-Based One Customs (WEBOC) electronic system; reducing the number of documents required for import / export clearances; enhancing capacities of Pakistan Customs officials for playing pro-active role in smoothly regulating border trade.
Climbing up the ladder in Trading Across Border Index has enabled Pakistan in jumping up 28 places – from 136th to 108th – in World Bank’s (WB)’s ‘Ease of Doing Business 2020’ and securing a place among the top 10 countries have done the most in the corresponding / past year to improve the ease of doing business in their countries.
This milestone has led Pakistan to be the sixth global reformer and first in South Asia that has brought ease in doing business for the national / international trade.
It is important to note that border facilitation is amongst the top priority areas as per the comprehensive policy laid down by the Government. Concerted efforts by Pakistan Customs, under FBR, led to impressive performance in terms of compliance to the provisions of World Trade Organization (WTO)’s Trade Facilitation Agreement; hence, complementing Pakistan’s rise in Trading Across Border Index.
Pakistan Customs has pursued implementation of effective customs controls so that compliant trade is thoroughly facilitated, while lesser / non-compliant trade is diverted to detailed scrutiny. This strategy worked well, as conceived by Pakistan Customs, and has gone a long way in reducing the dwell time (at the borders / ports) for imports / exports in Pakistan by increasing the percentage of clearances through Green Channel.
For instance, the time required for documentary compliance to effect exports has been reduced from 55 hours to 24 hours, and the time required for overall border compliance to effect exports has also been reduced from 75 hours to 24 hours.
Similarly, the time required for documentary compliance to effect imports has been reduced from 143 hours to 24 hours, and the time required for overall border compliance to effect imports has also been reduced from 120 hours to 24 hours.
In order to further improve Pakistan’s position in Trading Across Border criterion, Federal Board of Revenue is pursuing simultaneous completion of Regional Improvement of Border Services (RIBS) and Pakistan Single Window.
Regional Improvement of Border Services (RIBS) is being implemented at Torkham, Chaman, and Wahga and is the Flagship program that aims at improving border-crossing facilities which are key transit points to Afghanistan and India.
Pakistan Single Window, on the other hand, would integrate online at least 46 departments / agencies in Pakistan and would make trading across border a hassle free and seamless operation.
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Sales Tax Refund: FBR team to brief taxpayers on filing Annexure-H
KARACHI: A team of Federal Board of Revenue (FBR) will brief taxpayers about the procedure for filing Annexure-H which is mandatory for filing sales tax refunds.
According to a circular, a technical committee of the FBR is scheduled to organize workshop/Webinar for orientation of SME manufacturers-cum-exporters and commercial exporters and tax consultants with regards to FASTER and procedure of filing of Annexure H on Wednesday January 20, 2021.
The FBR team will brief how to file annexure H for smooth refund.
Small and commercial exporters have been urged to join the workshop through Zoom meeting.
https://us02web.zoom.us/j/8083005875?pwd=ZktTS2YrOE5oM2FTTzYwd2c5Q3NVUT09
Annexure-H is a statement for providing stock position by taxpayers along with monthly sales tax return.
The FBR from July 01, 2019 introduced expeditious payment of sales tax refunds within 72 hours subject to the true filing of Annexure – H.
As per the Rules, refund will be treated as having been filed only after filing of Annexure H of the Sales Tax return, for which deadline of 120 days has been prescribed in the Rules and the same can be extended for a period of 60 days on the basis of approval from the Commissioner.
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FBR obtains transaction information of stock members, brokers from NCCPL
The Federal Board of Revenue (FBR) is set to gain direct access to transaction information of members, brokers, and investors within Pakistan’s equity market.
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