Day: January 25, 2021

Law prohibits arrest of women, minors for tax recovery

ISLAMABAD: Income tax law has prohibited tax officials from arresting any woman or a minor for recovery of tax default amount, officials at Federal Board of Revenue (FBR) said on Monday.

They said that Commissioner Inland Revenue, having authority to recover tax amount by using various options defined under the law, has been prohibited to order the arrest of a woman or any person who, in his opinion, is a minor or of unsound mind.

The officials said that Income Tax Rules, 2002 has explained in detailed about the powers of Commissioner of Inland Revenue related to recovery of outstanding tax money.

The commissioner has an authority to ask officer incharge of the civil person for detention of the defaulter in civil prison under Rule 186(1) of the Income Tax Rules, 2002.

Rule 187 explains detention in and release from prison.-

(1) Every person detained in the civil prison in execution of a notice may be so detained-

(a) where the notice is for a demand of an amount exceeding twenty five thousands, for a period of six months, and

(b) in any other case for a period of six weeks:

Provided that he shall be released from such detention-

(i) on the amount mentioned in the warrant for his detention being paid to the Officer-in-charge of the civil prison, or

(ii) on the request of the Commissioner who has issued the notice or of the Commissioner on any ground other than the grounds mentioned in rules 193(1) and 196:

Provided further that where he is to be released on the request of the Commissioner, he shall not be released without the order of the Commissioner.

(2) A defaulter released from detention under this rule shall not, merely by reason of his release, be discharged from his liability for the arrears; but he shall liable to be re-arrested under the notice in execution of which he was detained in the civil prison.

Rule 188. Release.-

(1) The Commissioner may order the release of a defaulter who has been arrested in execution of a notice upon being satisfied that he has disclosed the whole of his property and has placed it at the disposal of Commissioner and that he has not committed any act in bad faith.

(2) If the Commissioner has ground for believing the disclosure made by the defaulter under sub-rule (1) to have been untrue, he may order the re-arrest of the defaulter in execution of the notice but the period of his detention in the prison shall not in the aggregate exceed that authorized by rule 187.

Rule 189. Release on ground of illness.-

(1) At any time after a warrant for the arrest of a defaulter has been issued, the Commissioner may cancel it on ground of the serious illness of the defaulter.

(2) Where a defaulter has been arrested, the Commissioner may release him if, in the opinion of the Commissioner of Tax, he is not in a fit state of mind to be detained in the civil prison.

(3) Where a defaulter has been committed to the civil prison, he may be, released therefrom by the Commissioner on the ground of the existence of any infectious or contagious disease or on the ground of his suffering from any illness.

(4) A defaulter released under this rule may be re-arrested, but the period of his detention in the civil prison shall not in the aggregate exceed that authorized by rule 164.

January 25, 2021
Jazz awarded contract worth Rs254 million for broadband services

ISLAMABAD: The Universal Service Fund (USF) has awarded contract worth Rs254 million to Jazz for providing high speed mobile broadband services in rural and remote areas of Punjab, a statement said on Monday.

Federal Minister for IT and Telecommunication, Syed Amin Ul Haque and Federal Minister for Science and Technology, Fawad Chaudhry witnessed the contract signing ceremony held at the Ministry of IT and Telecommunication, Islamabad on Monday.

The contracts were signed by Haaris Mahmood Chaudhary, CEO, USF with Aamir Ibrahim, CEO Jazz. The Federal Secretary for IT & Telecommunication and Chairman USF Board, Shoaib Ahmad Siddiqui, and Chairman PTA, Major General (R) Amir Azeem Bajwa were also present at the ceremony.

Chief Guest of the ceremony, Federal Minister for IT and Telecommunication, Syed Amin Ul Haque said: “While the COVID-19 pandemic slackened economic activity, vibrant Information and Communication Technology (ICT) systems played a pivotal role in ensuring the availability of essential services to the community.

In a way, the pandemic actualized the true potential of broadband services, transforming the way people lived their lives.

In line with the Digital Pakistan initiative, we are committed to providing the required digital ecosystem by working with all relevant stakeholders for enhanced connectivity, improved digital infrastructure, and promotion of emerging technologies.”

The Federal Minister also congratulated Jazz and USF on the signing of the contract and expressed the hope that residents in Jhelum and Chakwal districts will have better connectivity through Jazz’s state-of-the-art network.

He stated that the Ministry of IT and Telecommunication through USF will continue to empower the citizens in remote and far-flung areas to ensure that every Pakistani has access to the internet, enabling them to explore new socio-economic opportunities.

While sharing his views at the ceremony, Aamir Ibrahim, CEO Jazz, said, “Our continued partnership with USF is a reflection of Jazz’s commitment to bridge the digital divide and connect our fellow countrymen with fast and reliable mobile broadband. Our ambition to digitally empower Pakistan is fueled through enhanced connectivity and by creating equal opportunities for all.”

Also, sharing his thoughts at the ceremony, CEO USF, Haaris Mahmood Chaudhary said: “This project will benefit an unserved population of 0.34 million in 263 unserved mauzas, thereby covering an unserved area of 4,002 sq.km. of Jhelum and Chakwal districts.

“By providing mobile broadband to the unserved muazas across the country, USF is playing a crucial role in the socio-economic progress of the people at the grassroots level and have opened the doors of opportunities for the masses.

“USF will continue to work towards achieving the vision of Digital Pakistan”.

Furthermore, he thanked the Federal Minister and the Ministry of IT and Telecommunication for their continued support and guidance.

January 25, 2021
Industry rejects shutting down gas supply decision

KARACHI: Trade and industry on Monday strongly rejected the government decision of discontinuing gas supply for export and manufacturing sectors.

The industry will face the ever severe situation in the wake of discontinuation of gas supply to captive power generation for general industry from February 01 and the export-oriented sectors from March 01, 2021 leaving severe impact on the economy and exports of Pakistan.

This was stated by Mian Nasser Hyatt Maggo, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) addressing a Press Conference.

The President FPCCI also accompanied by President Karachi Chamber of Commerce and Industry Shariq Vohra and other business leaders.

All the business leaders vehemently rejected the cabinet decision and appealed Prime Minister to revisit this decision in the best interest of the survival of industry and for enhancement of Pakistan’s export and creating employment in the country.

He further went on saying that industry is already confronted with many challenges particularly with respect to procurement of long term orders for the exports.

However, the Pakistan’s exports when witnessing a growth this decision has badly affected confidence of foreign buyers and asking for completion of their orders and it is apprehended the export orders are likely to shift elsewhere to the other competing countries.

He also quoted that Pakistan utility tariff is comparatively very high than the other regional countries.

He further said that transferring electricity from captive power to grid will take time and costly not feasible as the cost of electricity generated by our captive powers is lower than the cost involved in shifting to grid.

Most of the industries were running on natural gas using boilers and regeneration system so it was impossible to be converted on the grid and change the whole appliances within one month.

Mian Nasser Hyatt Maggo stated that the decision of Cabinet Committee on Energy (CCOE) appears to have been taken on non-professional advice and without consultation of main stakeholders that is businessmen and apex bodies. He further said that this decision will not only harm the economy of Pakistan but will also damage our image with international buyers which seem a conspiracy against the progress made by Pakistan in the last two years by the present government.

While addressing the press conference, Shariq Vohra, President KCCI showed surprise on the decision and stated that they would not allowed K-electric sabotage Karachi’s progress and development and both representative from Karachi Chamber strongly emphasized that government should not take such decisions that create labor unrest due to closures of factories.

January 25, 2021
Stock market gains 220 points on better results expectations

KARACHI: The stock market gained 220 points on Monday as major scrips contributed positively after expectation of better financial results.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 46,088 points as against the closing of last Friday 45,868 points, showing an increase of +220 points.

Analysts at Arif Habib Limited said that the market opened on a positive note today, which is also the first day of the rollover week.

Cement, Engineering (Steel), Power and O&GMCs contributed positively to the Index, in anticipation of better financial results of the outgoing quarter.

Technology stocks also contributed positively to the Index. Scrips that have high weightage in Futures contract subject to rollover traded in the positive zone, especially TRG and Netsol.

Among scrips, KEL topped the volumes with 36.6 million shares, followed by UNITY (35.9 million) and TRG (29.8 million).

Sectors contributing to the performance include Technology (+96 points), Cement (+49 points), Pharma (+45 points), Fertilizer (+38 points) and Power (+22 points).

Volumes increased from 430.6 million shares to 470.1 million shares (+9 percent DoD). Average traded value also increased by 33 percent DoD to reach US$ 130.9 million as against US$ 98.4 million.

Stocks that contributed significantly to the volumes include KEL, UNITY, TRG, ANL and FFL, which formed 31 percent of total volumes.

Stocks that contributed positively to the index include TRG (+85 points), HUBC (+20 points), ANL (+17 points), UNITY (+17 points) and FFC (+17 points). Stocks that contributed negatively include HBL (-24 points), DAWH (-17 points), OGDC (-15 points), UBL (-13 points) and MEBL (-12 points).

January 25, 2021
Rupee eases by four paisas against dollar

KARACHI: The Pak Rupee eased by four paisas against the dollar on Monday owing to demand of the foreign currency for import and corporate payments.

The rupee ended Rs160.79 to the dollar from last Friday’s closing of 160.75 in the interbank foreign exchange market.

Currency dealers said that the rupee remained under pressure due to higher dollar demand as the market was reopened after two-day weekly holidays.

The currency experts said that sufficient foreign exchange reserves of the country and inflows of export receipts and workers’ remittance would help the local unit to improve value in coming days.

January 25, 2021
FBR receives 3.06 million record high income tax returns for Tax Year 2019

ISLAMABAD: The Federal Board of Revenue (FBR) has achieved a record-breaking milestone by receiving 3.06 million income tax returns for the tax year 2019, as per the latest Active Taxpayers List (ATL) issued on Monday. This remarkable achievement reflects the FBR’s sustained efforts to enhance compliance and encourage taxpayers to fulfill their obligations.
(more…)

January 25, 2021
SHC dismisses petition challenging KE privatization

KARACHI: Sindh High Court (SHC) has dismissed a constitutional petition that has challenged the privatization of K-Electric, the power distribution company.

In a note sent to Pakistan Stock Exchange (PSX) on Monday, K-Electric Limited said that the court had dismissed constitutional petition bearing No. D1511-2012 titled as KESX Labour Union and Others vs. Federation of Pakistan and others’ along with related petitions on January 21, 2020, whereby the court had dismissed the said petition through which the privatization of the K-Electric Limited was challenged.

The judgment was announced in the open court. However, the certified copy of the afore-noted judgment is still awaited, K-Electric said.

January 25, 2021
Sales tax value addition at 3 percent applicable on all imported goods

ISLAMABAD: Sales tax on account of minimum value addition at three percent is applicable on all imported goods subject to exclusions on import of various imported goods.

According to Sales Tax Act, 1990, all imported goods are subject to 3 percent ad valorem subject to exclusion as in conditions and procedure.

The government recently abolished three percent sales tax value addition on import of sugar to help in reducing domestic prices of the commodity.

The officials at the Federal Board of Revenue (FBR) said that under the Sales Tax Act, 1990 the procedure and conditions have been laid down for the levy of three percent value addition tax on imported goods.

(1) The sales tax on account of minimum value addition as payable under this Schedule (hereinafter referred to as value addition tax), shall be levied and collected at import stage from the importers on all taxable goods as are chargeable to tax under section 3 of the Act or any notification issued thereunder at the rate specified in the Table in addition to the tax chargeable under section 3 of the Act or a notification issued thereunder:

(2) The value addition tax under this Schedule shall not be charged on,—

(i) Raw materials and intermediary goods imported by a manufacturer for in-house consumption;

(ii) The petroleum products falling in Chapter 27 of Pakistan Customs Tariff as imported by a licensed Oil Marketing Company for sale in the country;

(iii) Registered service providers importing goods for their in-house business use for furtherance of their taxable activity and not intended for further supply;

(iv) Cellular mobile phones or satellite phones;

(v) LNG / RLNG;

(vi) Second hand and worn clothing or footwear (PCT Heading 6309.000);

(vii) Gold, in un-worked condition;

(viii) Silver, in un-worked condition;

(ix) The goods as specified in the Third Schedule on which tax is paid on retail price basis; and

(x) plant, machinery and equipment falling in Chapters 84 and 85 of the First Schedule to the Customs Act, 1969 (IV of 1969), as are imported by a manufacturer for in-house installation or use.

(3) The value addition tax paid at import stage shall form part of input tax, and the importer shall deduct the same from the output tax due for the tax period, subject to limitations and restrictions under the Act, for determining his net liability.

The excess of input tax over output tax shall be carried forwarded to the next tax period as provided in section 10 of the Act.

(4) The refund of excess input tax over output tax, which is attributable to tax paid under this Schedule, shall not be refunded to a registered person in any case, except that as used for making of zero-rated supplies.

(5) The registered person, if also dealing in goods other than imported goods, shall be entitled to file refund claim of excess carried forward input tax for a period as provided in section 10 or in a notification issued there under by the Board after deducting the amount attributable to the tax paid at import stage i.e. sum of amounts paid during the claim period and brought forward to claim period. Such deducted amount may be carried forward to subsequent tax period.

January 25, 2021