Day: February 21, 2021

Pakistan Customs impounds non-duty paid vehicles worth Rs11.3 billion

ISLAMABAD: Pakistan Customs has impounded non-duty paid motor vehicles worth Rs11.3 billion during first seven months (July – January) of the current fiscal year, said a spokesman of the Federal Board of Revenue (FBR) on Sunday.

The seizure of non-duty paid motor vehicles registered growth around 66 percent as the customs authorities seized motor vehicles worth Rs6.8 billion in the same period of the last fiscal year.

The customs authorities confiscated smuggled goods worth Rs35 billion during the first seven months of the current fiscal year, showing an increase of 59 percent when compared with Rs22 billion in the corresponding months of the last fiscal year. It is pertinent to mention that the total seizures during the last fiscal year was Rs36 billion.

Giving the details of the seizure, the spokesman said that the customs authorities seized smuggled betel nuts amounting Rs3.4 billion during July – January 2020/2021, which was 105 percent higher than the seizer of in the same period of the last fiscal year.

A growth of 28 percent has been recorded in seizure of smuggled clothes and 70 percent rise recorded in illicit cigarettes.

The customs authorities confiscated auto parts worth Rs492 million, recording 113 percent growth than the last fiscal year.

Pakistan Customs seized high speed diesel worth Rs899 million and jewellery worth Rs271 million during the period under review.

The spokesman added that in its ongoing crackdown against sales of smuggled petroleum products through illegal fuel stations, the customs authorities sealed around 2000 petrol pumps.

February 21, 2021
Procedure issued for intimating retirement, submission of pension papers

ISLAMABAD: Federal Board of Revenue (FBR) has issued procedure for officers and staff of tax machinery regarding intimation about their superannuation retirement and submission of pension papers.

In supersession to Board’s earlier SOPs No. 25(20)MIR-IV/2016 dated 10.12.2020, the FBR said that while submitting the cases of retirement, pension papers and encashment of LPR for officers of field formations, the following documents must be attached with the application:-

I. RETIREMENT NOTIFICATION:

i. Application of the officer along with attested copies of CNIC and payslip

ii. Service Book & Matriculation Certificate (in original)

iii. Prescribed certificate regarding disciplinary and criminal proceedings (in original) format enclosed.

iv. Even if an officer does not submit application to the head of field formation for issuance of his/her retirement notification, it shall be incumbent upon the respective head to submit documents to the Board for issuance of retirement notification at least 3 months prior to his/her superannuation.

II. PREMATURE/ VOLUNTARY RETIREMENT:

The option for pre-mature/voluntary retirement after rendering 25 years of qualifying service shall be submitted along with all requisite documents mentioned above at least 06 months before the date of voluntary retirement with specific recommendations of the concerned Head of the field formation.

III. PENSION CASES:

i. Each page of pension papers must be signed and stamped (by name) by the DDO/Account Officer concerned and countersigned by the respective Head of office i.e. Chief Commissioner/ Chief Collector/ Director General/ Commissioner/ Collector/ Director.

ii. Pension application along with three attested Photographs.

iii. LPC (in original) issued by concerned AGPR/sub-offices of AGPR or District Accounts Officer (as the case may be).

iv. CNIC of the pensioner.

v. Prescribed certificate regarding disciplinary and criminal proceedings (format enclosed).

vi. No column of the pension papers should be left blank. Even if it is NIL, the same may be incorporated. Any irrelevant or inapplicable columns should be struck down.

(vii) While forwarding the pension papers, the respective Chief Commissioner/ Chief Collector/ Director General/ Commissioner/ Collector/ Director shall invariably submit recommendations about the release of full pension on the basis of satisfactory service of the pensioner or to withhold any portion of pension recording reasons thereof with evidences, in the relevant column, for decision by the Sanctioning Authority.

IV. LEAVE ENCASHMENT/LPR:

i. Leave admissibility certificate duly signed and stamped by the concerned officer of AGPR/ Sub-Offices of AGPR/District Account Officer

ii. In case of leave encashment, a certificate stating that the officer has not availed any kind of leave (except casual leave) during the last year of his/her service. In case leave is availed during last year, the details of leave availed, its nature and period with dates are to be specifically mentioned.

iii. Attested copy of retirement notification issued by the Board.

The FBR said that in case an application is not received with complete documentation, it will be returned with a copy of SOP indicating missing documents.

February 21, 2021
SBP governor to moderate dialogue on ‘banking on equity’ hosted by World Bank

KARACHI: The World bank is hosting a webinar on ‘Consultative Dialogue on the State Bank of Pakistan’s Gender Financial Inclusion Policy – Banking on Equality’ on Tuesday, February 23, 2021, a statement said on Sunday.

During the webinar, Governor SBP, Dr. Reza Baqir will moderate a high profile international panel discussion.

The State Bank of Pakistan (SBP) has developed a draft policy titled ‘Banking on Equity’, which aims to introduce a gender lens within the financial sector through targeted measures to bring a shift to women friendly business practices and to significantly increase women’s financial inclusion in Pakistan, a statement said on Sunday.

This policy is currently in a public consultation phase and is expected to be launched shortly. SBP has held several Focus Group Discussions led by Governor SBP, Dr. Reza Baqir and Deputy Governor Sima Kamil with key stakeholders including government, financial institutions, regulatory bodies, academia, business federations, gender policy experts, civil society and women entrepreneurs.

This Webinar will draw on global experiences of gender responsive policies to inform how these may work effectively in the context of a developing country like Pakistan.

During the webinar, Governor SBP, Dr. Reza Baqir will moderate a high profile international panel discussion. Joining him will be Ms. Caren Grown (Global Director, Gender, World Bank), Ms. Mary Ellen Iskenderian (President & CEO, Women’s World Banking) and Ms. ParwatiSurjaudaja (President Director, Bank OCBC NISP Indonesia).

The panelists are renowned global experts with rich experience in women’s financial inclusion and the benefit of their insights will help conclude the consultative phase of this policy.

The program will include views from Hartwig Schafer (Vice President for the South Asia Region, World Bank), Alfonso Garcia Mora (Vice President for Asia and Pacific, IFC) while Deputy Governor SBP Ms. Sima Kamil will present the key pillars of the policy.

February 21, 2021
What is Income Year?

Income Tax Ordinance, 2001 has explained that the meaning of income year is same as defined in repealed Income Tax Ordinance, 1979.

The repealed Income Tax Ordinance, 1979 defined the income year as:

Income year”, in relation to any assessment year (hereafter in this clause, referred to as `the said assessment year’), means-

(a) the financial year next preceding the said assessment year, or

(c) such period as the Central Board of Revenue (now Federal Board of Revenue) may, in the case of any person or class of persons or any source of income, specify by notification in the official Gazette, and includes any period which, under any provision of this Ordinance, is deemed to be an income year, or in respect of which a return of total income is required to be furnished, or any income is liable to be

Explanation.-

(a) Where, in any case,-

(iii) both sub-clause (a) and sub-clause (c) apply, the income year as specified under clause (c) shall be deemed to be the income year of the assessee in respect of his income from all sources; and

(iv) the sources of income of an assessee include two or more sources in respect of which income years have been specified under clause (c), the income year of the said income years ending last shall be deemed to be the income year of the assessee in respect of his income from all sources except the sources to which clause (c) applies; and

(b) as used in sub-clause (c), “period” means any period of twelve months, or any period of more or less than twelve months, and includes any such period as may commence from, or end on, any date, including a date falling before the commencement, or after the end, as the case may be, of the financial year next preceding the said assessment year.

February 21, 2021
How to determine tax year?

Tax year, as defined by Income Tax Ordinance, 2001, means the tax year as defined in sub-section (1) of section 74 and, in relation to a person, includes a special year or a transitional year that the person is permitted to use under section 74.

According to the Income Tax Ordinance, 2001, updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), explained the Section 74 as:

Tax year.— (1) For the purpose of this Ordinance and subject to this section, the tax year shall be a period of twelve months ending on the 30th day of June (hereinafter referred to as ‘normal tax year’) and shall, subject to sub-section (3), be denoted by the calendar year in which the said date falls.

(2) Where a person’s income year, under the repealed Ordinance, is different from the normal tax year, or where a person is allowed, by an order under sub-section (3), to use a twelve months’ period different from normal tax year, such income year or such period shall be that person’s tax year (hereinafter referred to as ‘special tax year’) and shall, subject to sub-section (3), be denoted by the calendar year relevant to normal tax year in which the closing date of the special tax year falls.

(2A) The Board,—

(i) in the case of a class of persons having a special tax year different from a normal tax year may permit, by a notification in the official Gazette, to use a normal tax year; and

(ii) in the case of a class of persons having a normal tax year may permit, by a notification in the official Gazette, to use a special tax year.]

(3) A person may apply, in writing, to the Commissioner to allow him to use a twelve months’ period, other than normal tax year, as special tax year and the Commissioner may, subject to sub-section (5), by an order, allow him to use such special tax year.

(4) A person using a special tax year, under sub-section (2), may apply in writing, to the Commissioner to allow him to use normal tax year and the Commissioner may, subject to sub-section (5), by an order, allow him to use normal tax year.

(5) The Commissioner shall grant permission under sub-section (3) or (4) only if the person has shown a compelling need to use special tax year or normal tax year, as the case may be, and the permission shall be subject to such conditions, if any, as the Commissioner may impose.

(6) An order under sub-section (3) or (4) shall be made after providing to the applicant an opportunity of being heard and where his application is rejected the Commissioner shall record in the order the reasons for rejection.

(7) The Commissioner may, after providing to the person concerned an opportunity of being heard, by an order, withdraw the permission granted under sub-section (3) or (4).

(8) An order under sub-section (3) or (4) shall take effect from such date, being the first day of the special tax year or the normal tax year, as the case may be, as may be specified in the order.

(9) Where the tax year of a person changes as a result of an order under sub-section (3) or sub-section (4), the period between the end of the last tax year prior to change and the date on which the changed tax year commences shall be treated as a separate tax year, to be known as the “transitional tax year”.

(10) In this Ordinance, a reference to a particular financial year shall, unless the context otherwise requires, include a special tax year or a transitional tax year commencing during the financial year.

(11) A person dissatisfied with an order under sub-section (3), (4) or (7) may file a review application to the Board, and the decision by the Board on such application shall be final.

February 21, 2021