Pkrevenue.com

Month: March 2021

  • FTO recommends restricting tax officials’ powers

    FTO recommends restricting tax officials’ powers

    ISLAMABAD: Federal Tax Ombudsman (FTO) has recommended restricting powers of tax officials in recovery of outstanding account through freezing bank account of taxpayers.

    The FTO in its proposals for budget 2021/2022 said that coercive recoveries through attachment of bank accounts without notice and subsequent delay in restoring the account, hits the taxpayers very hard.

    It was recommended that notices should be issued with bar code and time limit may be prescribed for ensuring the de-sealing of bank accounts of taxpayers/assesses after resolution of issue.

    Following measures were also suggested as budget proposals:

    • Restrict the use of power to attach bank accounts unless the case under litigation has been established at least in the first appellate stage;

    • Adherence to service of Bar-Coded notices to eliminate possibility of abrupt attachment of bank accounts for recoveries and hasty ex-parte decisions;

    • Shortest time limit may be prescribed in the statute to ensure de-sealing of bank accounts of taxpayers/assesses.

    According to FBR, it is mandatory not to issue Income

    Tax related notice without Bar Code. The mechanism of automatic stay of demand by paying 10 percent of demand also exists under all IR laws.

    However, FTO constantly receives complaints on coercive recoveries and issues appropriate Recommendations.

  • Dollar falls to Rs152.25 in early trade

    Dollar falls to Rs152.25 in early trade

    KARACHI: The US Dollar has fallen by 84 paisas to Rs152.25 in early day trade in interbank foreign exchange market on Wednesday, dealers said.

    The dollar has fallen around 21 and half months and being traded at Rs152.25 from previous day’s closing of Rs153.09 in the interbank foreign exchange market.

    Currency experts said that the rupee appreciated due to auction of Eurobond by the government that fetched around $2.5 billion.

  • Pakistan receives $498.7 million IMF tranche

    Pakistan receives $498.7 million IMF tranche

    KARACHI: Pakistan has successfully received a tranche of $498.7 million under the Extended Fund Facility (EFF) from the International Monetary Fund (IMF), as confirmed by the State Bank of Pakistan (SBP) on Tuesday.

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  • FBR urged to remove CNIC condition on sales up to Rs100,000 by distributors

    FBR urged to remove CNIC condition on sales up to Rs100,000 by distributors

    KARACHI: Federal Board of Revenue (FBR) has been urged to withdraw condition of CNIC on supplies made by distributors to unregistered persons on sales up to Rs100,000.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2021/2022 stated that under section 23(1)(b) of the Sales Tax Act, 1990 exclusion has been provided to retailers, whereby retailers supplying taxable goods to unregistered persons are not required to mention the CNIC unregistered customers, wherein the transaction value inclusive of sales tax does not exceed Rs.100,000.

    Due to the present provisions of the law, the distributors are facing a dilemma whereby small retailers are purchasing taxable goods valuing Rs.100,000 from mega stores (retailers) in order to avoid the requirement of providing the CNIC, resulting in loss of business for the Distributors who normally used to sell goods to such small retailers

    The KCCI proposed that FBR should extend similar exclusion of Rs.100,000 to distributors as well.

    Giving rationale, the KCCI said that it will help ease of doing business thereby resulting in enhancement of tax revenue.

  • FBR notifies promotion of customs officers to BS-19

    FBR notifies promotion of customs officers to BS-19

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday announced promotion of officers of Pakistan Customs Service (PCS) from BS-18 to the posts of Additional Collectors of Customs (BS-19) on regular basis with immediate effect.

    Following officers have been promoted to BS-19:

    01. Asma Bashir

    02. Khaldun Ul Haq

    03. Muhammad Moazzam Raza

    04. Ali Waheed Khan

    05. Amanullah

    06. Syed Babar Ali Shah

    07. Fazli Shakoor

    08. Asim Rehman

    09. Muhammad Faisal

    10. Shams-ur-Rehman

    11. Falik Shair

    12. Yawar Nawaz

    13. Mahwish Shah

    The FBR said that the officers who are already working in BS-19 on OPS basis will actualize their promotion against these posts. Posting / Transfer orders of the remaining officers will be notified separately.

    The officer appearing at Serial No. 10 will actualize his promotion from the date he returns from deputation and joins FBR.

    The Officers who were drawing performance allowance prior to issuance of this notification shall continue to draw the allowance on their promotion.

  • FBR includes five export oriented associations for reduced power, gas tariff

    FBR includes five export oriented associations for reduced power, gas tariff

    ISLAMABAD: Federal Board of Revenue (FBR) has included five associations of export oriented sector (erstwhile zero-rated sector) in the concessionary tariff regime of electricity, RLNG and gas.

    The FBR issued Sales Tax Circular No. 01 of 2021 on Tuesday to include the members of five associations for providing concessionary tariff of electricity, RLNG and gas.

    The associations are included:

    (i) Pakistan Tanners Association (PTA)

    (ii) Pakistan Knitwear & Sweater Exporters Association (PAK-SEA)

    (iii) Towel Manufacturers’ Association of Pakistan (TMA)

    (iv) All Pakistan Bedsheets & Upholstery Manufacturers Association (APBUMA)

    (v) Pakistan Silk & Rayon Mills Association

    Previously, through Sales Tax Circular No. 04 dated December 30, 2020, the FBR notified following associations for referring their members for reduced tariff of electricity and gas:

    01. All Pakistan Textile Mills Association (APTMA)

    02. Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)

    03. Pakistan Hosiery Manufacturers Association (PHMA)

    04. Pakistan Textile Exporters Association (PTEA)

    05. Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA)

    06. Pakistan Sports Goods Manufacturers & Exporters Association

    07. Surgical Instruments Manufacturing Association of Pakistan

    08. Pakistan Denim Manufacturers and Exporters Association

    09. All Pakistan Textile Processing Mills Association (APTPMA)

    The FBR issued standard operating procedure (SOP) to start the registration process.

    In a notification, the FBR said that the economic coordination committee of the cabinet had approved the reduced rate to manufacturers on supply of electricity and gas in a meeting held on December 12, 2020. The ECC also directed the FBR, ministry of commerce and other stakeholders to devise a standard operating procedure (SOP) for enrollment of registered persons under the export-oriented sectors (erstwhile zero-rated sectors) to quality concessionary regime of electricity, RLNG and gas tariff.

    Accordingly, a meeting was held in FBR on December 22, 2020 and as a result of thorough deliberations amongst all stakeholders the requisite SOP has been agreed upon and being rolled onto.

    The FBR said the following SOP adopted for enrollment of manufacturers for grant of reduced tariff rate:

    (i) For new registration of manufacturers for concessionary tariff rates, applicants may apply respective representative association.

    (ii) The Association concerned, after verifying the particulars on the prescribed format, may forward the application along with its element recommendations, duly signed by its chairman/president, to the export oriented sector registration cell (ESRC) of the FBR.

    (iii) The ESRC shall examine the particulars and recommendations of the respective associations and counter-verify particulars of the taxpayer including declarations in the registration profile etc. as required, and forward the case to the ministry of commerce for allowing concessionary tariff through respective Distribution Companies (DISCOs)/Gas companies.

    (iv) In case the ESRC spots any discrepancies in the verification report and data available with the FBR, the matter will be referred to Inland Revenue field formations for ground-check, report and recommendations.

    (v) The newly enrolled taxpayers shall be entitled to avail concessionary tariff prospectively.

    (vi) The DISCOs/gas companies shall ensure that the taxpayers are active on FBR’s (Sales Tax) Active Taxpayers List (ATL) as shared with DISCOs/gas companies each month before generating the monthly utility bills. In case the taxpayer is found non-active on the ATL, standard utility tariff shall apply on supply of utilities for the relevant period.

    (vii) Any taxpayer aspiring to avail concessionary utility rates and who is not registered with the respective sector association, may approach the Inland Revenue field formation concerned for verification of its business particulars and onward submission of report on the prescribed format to the RSRC within 15 days of the submission of the application.

    The procedure for the registration of new entrants in export oriented sectors shall become applicable with effect from January 01, 2021.

  • Stock market gains 59 points in mixed trading

    Stock market gains 59 points in mixed trading

    KARACHI: The stock market increased by 59 points on Tuesday in mixed trading sessions during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,491 points as against previous day’s closing of 43,755 points, showing an increase of 59 points.

    Analysts at Arif Habib Limited said that the market reacted passively to the partial changes made by the Government in Finance & Petroleum Ministries with Index oscillating between -232 points and +377 points, closing the session +178 points (unadjusted).

    Last half an hour of closing saw brisk buying and rapid recovery although the session saw dull activity for good part of the session.

    News reports indicated further changes in the Federal cabinet in offing, which will be announced later today and finalized by Thursday.

    This kept Investors perturbed about the changes made in key ministries and impact thereof on policy measures taken in the past several months. UNITY rebounded well to trade near upper circuit by the end of session, whereas tech and refinery stocks also garnered support.

    Among scrips, BYCO realized trading volume of 45.8 million shares, followed by TRG (35.2 million) and UNITY (30.8 million).

    Sectors contributing to the performance include Banks (+58 points), Autos (+32 points), Cement (+20 points), Chemical (+14 points), E&P (-39 points), Power (-36 points) and Tobacco (-18 points).

    Volumes declined from 523.8 million shares to 339 million shares (-35 percent DoD). Average traded value also declined by 12 percent to reach US$ 135.6 million as against US$ 153.6 million.

    Stocks that contributed significantly to the volumes include UNITY, PRL, NETSOL, HUMNL and TELE, which formed 28 percent of total volumes.

    Stocks that contributed positively to the index include MCB (+57 points), FFC (+21 points), INDU (+11 points), FFBL (+11 points) and PAEL (+10 points). Stocks that contributed negatively include ENGRO (-39 points), HUBC (-32 points), MARI (-28 points), PAKT (-16 points) and UBL (-16 points).

  • Banks directed to extend hours for duty, tax collection

    Banks directed to extend hours for duty, tax collection

    KARACHI: State Bank of Pakistan (SBP) on Tuesday directed banks to observe extended banking hours to facilitate collection of duty and taxes.

    The SBP said that to facilitate the collection of government receipts/ duties / taxes, it has been decided that the field officers of SBP Banking Services Corporation (SBP-BSC) and authorized branches of National Bank of Pakistan (NBP) will observe extended banking hours till 6:00 PM on March 31, 2021 (Wednesday). For which purpose a special clearing has been arranged at 5:00 P.M. on the same day by the NIFT. 

    All banks are, therefore, advised to keep their concerned branches open on March 31, 2021 (Wednesday) till such time that is necessary to facilitate the special clearing for Government transactions by the NIFT.

  • FBR offices to observe extended working hours for revenue collection

    FBR offices to observe extended working hours for revenue collection

    ISLAMABAD: In an effort to maximize revenue collection before the close of the fiscal quarter, the Federal Board of Revenue (FBR) has directed all Inland Revenue offices to observe extended working hours on Wednesday, March 31, 2021.

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  • Rupee recovers Rs14.58 against dollar during current fiscal year

    Rupee recovers Rs14.58 against dollar during current fiscal year

    KARACHI: The rupee recovered Rs14.58 against the dollar during first nine months (July – March) of fiscal year 2020/2021.

    The rupee ended Rs153.09 on closing of March 30, 2021 as it was started the fiscal year Rs167.67 to the dollar.

    The rupee gained 95 paisas to close at Rs153.09 to the dollar on Tuesday as compared with previous day’s closing of Rs154.04 in the interbank foreign exchange market.

    Currency experts said that alarming rise in coronavirus cases had discouraged the demand of the foreign currency for import payment.

    The rupee also recovered Rs5.01 against the dollar during March 01 to March 30, 2021.