Pkrevenue.com

Month: March 2021

  • Sales of POL products jump up by 26pc in Feb

    Sales of POL products jump up by 26pc in Feb

    KARACHI: The sales of petroleum products have sharply increased by 26 percent in February 2021 as compared with same month of the last year owing to higher economic activities after reduction in coronavirus cases.

    The sales of Oil Marketing Companies (OMCs) were recorded at 1.4 million tons in February 2021 as compared with 1.11 million tons in the same month of the last year.

    Analysts at Arif Habib Limited attributed the growth to resilience displayed by the economy and the ensuing demand for motor spirit.

    Further, the growth may be attributed to better agricultural yields resulting in higher sales of high speed diesel (HSD). Besides, cheaper motor spirit and HSD prices compared to same period last year.

    The massive growth in two/three/four-wheeler off-take and absence of CNG at fuel stations increasing the demand of motor spirit were also major reasons for sales of petroleum products.

    The analysts said that strict control on borders to control supply of illegal or dumped fuel from Iran also contributed to higher sales.

    The sales of petroleum products also exhibited 13 percent increase to 12.67 million tons during first eight months (July – February) 2020/2021 as compared with 11.24 million tons during the same period of the last fiscal year.

    Dissection of data revealed that major contribution to growth came from HSD and furnace oil as their off take jumped to 4.84 million tons and 2.09 million tons, up by 15 percent and 36 percent YoY against 4.21 million tons and 1.54 million tons in same period of the last year.

  • Dollar retreats for 7th consecutive days against Rupee

    Dollar retreats for 7th consecutive days against Rupee

    KARACHI: The US dollar retreated for seventh consecutive trading days after falling another 19 paisas against the local unit on Tuesday.

    The exchange rate was at Rs159.10 on February 19, 2021. Since then the local currency recovered Rs1.25 against the dollar in interbank foreign exchange market.

    On Tuesday the rupee closed at Rs157.85 to the dollar from previous day’s closing of Rs158.04 in the interbank foreign exchange market.

    Currency experts said that with the dip of 19 paisas the US dollar was at nearly one-year low in Interbank, trading at Rs157.85 as it was Rs157.35 on March 10, 2020. The dollar has fallen by 6.4 percent since its peak lost around Rs10.58 since August 26, 2020 when it was at record high of Rs168.43.

    The currency experts said that the rupee may make more gains in coming days owing to improved inflows of workers’ remittances and export receipts.

  • Istanbul-Tehran-Islamabad freight train resumes operation on March 04: Razak

    Istanbul-Tehran-Islamabad freight train resumes operation on March 04: Razak

    ISLAMABAD: Razak Dawood, Adviser to Prime Minister of Pakistan for Commerce and Investment, on Tuesday said that after a span of nine years the Istanbul-Tehran-Islamabad (ITI) Freight Train will resume operations from March 4, 2021.

    In a tweet message, the adviser said that Istanbul-Tehran-Islamabad (ITI) Freight Train will resume operations from March 04, 2021 after nine years.

    “It will complete the one-side trip in 12-days, with capacity to move 750 MT of goods.”

    This is a testament of friendship between the three countries and will go a long way in facilitating movement of goods between Pakistan, Iran & Turkey.

    “I congratulate  Senator Azam Swati for making this possible,” he said.

    I call on our exporters to take benefit of this alternative route and mode of transport and contact the ministry of commerce for any facilitation.

  • FBR devises mechanism for release of consignments stuck-up at Karachi ports

    FBR devises mechanism for release of consignments stuck-up at Karachi ports

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday devised a mechanism for release of imported goods of FATA/PATA residents stuck-up at Karachi ports.

    A meeting was held under the Chairmanship of the FBR chairman with Inland Revenue-Operations and Customs Operations Wings to sort out the issues of imported goods of FATA/PATA residents stuck-up at Karachi Ports, Consumption/Installation Certificates, Postdated Cheques and Exemption Certificates under Section 148 of the Income Tax Ordinance, 2021.

    After thorough deliberations between the Chairman, Member (IR-Operations) and  Member (Customs-Operations) following mechanism was devised for the release of consignments of FATA/PATA residents stuck-up at the Karachi Ports:-

    The stuck-up containers are to be released by Customs authorities against Postdated Cheques (PDCs) and sent to their destination (FATA/PATA) under standard tracker mechanism.

    The Collector Customs (Enforcement & Compliance), Peshawar, will issue detention orders of the raw materials effective from day the consignment reaches the manufacturing premise of importers.

    The importer/manufacturer will be responsible to take the import documents alongwith detention order to the CIR concerned, RTO, Peshawar and make arrangements to have the manufacturing premises/raw material/machinery/goods imported verified.

    The CIR concerned, RTO, Peshawar will be liable to verify/undertake physical visit as conducted by the importer/manufacturer to the manufacturing premises where the goods are kept under detention, and allow the raw material to be consumed/utilized in writing.

    The CIR, concerned, RTO, Peshawar will ensure the monthly stock-taking of the raw materials to consumed in the production of manufactured goods by these manufacturing units. This stock-taking will facilitate in issuance of the

    Consumption Certificate under S.No.151 of the Sixth Schedule of the Sales Tax Act, 1990.

    The residents of FATA/PATA will apply for tax exemption certificates under section 159 of the Income Tax Ordinance, 2001 for the import of raw material/machinery in light of the Honorable Peshawar High Court, Mingora Bench, (Dara-ul-Qaza), Swat’s decision dated 24.11.2020.

    Commissioner Corporate, RTO, Peshawar and Collector Customs (Enforcement & Compliance), Peshawar would keep a close liaison to successfully implement the laid down mechanism.

  • Investors redeem Rs115 billion against suspended Rs25,000 prize bonds

    Investors redeem Rs115 billion against suspended Rs25,000 prize bonds

    ISLAMABAD: Investors have redeemed/enchased to the tune of Rs115 billion against bearer prize bonds of Rs25,000 denomination which were suspended by the government in December 2020.

    According to state media on Tuesday, the Central Directorate of National Savings (CDNS) had paid encashment of Rs 115 billion by February 28 to the investors against the suspension of prize bonds of Rs 25,000.

    An official of the CDNS quoted as saying that around Rs 115 billion had been paid to the customers during last three months and remaining 45 billion out of total Rs 160 billion would also be paid by May 30, 2021.

    On December 10, the State Bank of Pakistan (SBP) issued following instructions to the president and CEOs of all commercial banks regarding option to replace / encash the bonds:

    i. The Bonds can be converted to Rs. 25,000/-denomination Premium Prize Bonds (Registered) through the 16 field offices of SBP Banking Services Corporation, and branches of six authorized commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.

    ii. The authorized commercial banks shall also issue Rs. 25,000/-denomination Premium Prize Bonds (Registered)as per the prescribed procedure, with immediate effect. Stock of the same has already been delivered to authorized commercial banks.

    iii. The bondholder shall be required to submit a written request for conversion of bearer bonds to Rs. 25,000/-Premium Prize Bonds (Registered) on the prescribed application form.

    iv. The bondholder shall also be required to submit prescribed application forms for registration / purchase of Premium Prize Bonds as per the procedure in vogue.

    Replacement with Special Savings Certificate (SSC) / Defence Savings Certificate (DSC)

    i. The Bonds can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Centers.

    ii. All authorized commercial banks shall, therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.

    iii. The bondholder shall also be required to submit application form for purchase of SSC / DSC (SC-1) as per the prescribed procedure

    Encashment at Face Value

    i. The Bonds will only be encashed by transferring the proceeds to the bond holder`s bank account through the 16 field offices of SBP Banking Services Corporation, at authorized commercial bank branches and to the Savings Accounts at National Savings Centres.

    ii. All commercial banks shall receive requests for encashment of bearer bonds on the prescribed application form.

    A copy of the application form (Annexure A), duly signed and stamped, shall be provided to the bondholder as an acknowledgement receipt.

    Moreover, the prize bonds encashed / replaced by the general public may be surrendered to the concerned SBP BSC office through the respective regional office of the commercial bank.

    The government has already canceled prize bonds of Rs 40,000 and CDNS repaid to the investors the encashment worth of Rs 258 billion in 2019-20.

  • What is ‘start up’ under income tax ordinance?

    What is ‘start up’ under income tax ordinance?

    Income Tax Ordinance, 2001 has defined the meaning of ‘start up’ for the purpose of levying income tax.

    The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), defined ‘startup’ as:

     (i) a business of a resident individual, AOP or a company that commenced on or after first day of July, 2012 and the person is engaged in or intends to offer technology driven products or services to any sector of the economy provided that the person is registered with and duly certified by the Pakistan Software Export Board (PSEB) and has turnover of less than one hundred million in each of the last five tax years; or

    (ii) any business of a person or class of persons, subject to the conditions as the Federal Government may, by notification in the official Gazette, specify.

  • Small company defined by income tax ordinance

    Small company defined by income tax ordinance

    Income Tax Ordinance, 2001 has defined the meaning of ‘small company for the purpose of levying income tax.

    The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), explained ‘small company as a company registered on or after the first day of July, 2005, under the Companies Ordinance, 1984 (XLVII) of 1984, which,—

    (i) has paid up capital plus undistributed reserves not exceeding fifty million rupees;

    (ia) has employees not exceeding two hundred and fifty any time during the year;

    (ii) has annual turnover not exceeding two hundred and fifty million rupees; and

    (iii) is not formed by the splitting up or the reconstitution of company already in existence.

  • Finance ministry hopes achieving annual fiscal targets

    Finance ministry hopes achieving annual fiscal targets

    ISLAMABAD: The finance ministry is hopeful of achieving annual fiscal targets as half year (July – December) 2020/2021 fiscal position indicates that it will remain on track in the remaining half.

    The ministry of finance on Monday issued Mid-year Budget Review Report for Fiscal Year 2020/2021. The finance division said that the fiscal consolidation measures taken by the government had resulted in financial discipline, higher revenues and controlled expenditures.

    “The same strategy will be followed during the remaining period of the current fiscal year to achieve the fiscal sustainability,” it added.

    The continuity in fiscal consolidation, stable exchange rate, improved current account and better financial management, present a promising economic outlook, the finance division said.

    It said that the borrowing operations remained quite successful and in-line with the Medium-Term Debt Management Strategy (MTDS FY20 — FY23) of the Government. Government is following the policy of zero borrowing from SBP since July 2019 and is maintaining a cash buffer with SBP for meeting the contingencies/ obligations.

    Following are the key highlights:

    Similar to last year, domestic borrowing was made entirely from the financial markets during first half of current fiscal year. No borrowing was made from SBP. In fact, an amount of Rs. 285 billion was repaid to SBP during first half of ongoing fiscal year.

    All borrowings needed to finance the fiscal deficit were made through longer-term debt while Government retired a portion of short-term debt (T-Bills) by around Rs. 579 billion during this period.

    The government introduced various new instruments during first half of the current fiscal year to further develop the government securities market, attract more diversified investor base and to provide more flexibility and options to the investors as well as to the government.

    — 3, 5 and 10-year floating rate PIBs with quarterly coupon payment frequency are being issued since October 2020.

    — the government has started issuance of 5-year Sukuk with fixed rate rental payments since July 2020.

    — The government also introduced 2-year floating rate PIBs in November 2020 with quarterly coupon payment frequency and fortnightly interest rate resetting. Existing Floating Rate PIBs carry interest rate reset of 6-month while interest rate reset in this instrument in only two weeks.

    Similar to conventional bond, the government introduced re-opening mechanism in Sukuk auctions in July 2020 to increase liquidity of the Sukuk issue and lower costs for the government.

    Considering the encouraging participation and demand from the market in the recent auctions of 15 and 20-year PIBs, the government has decided to issue 30-year PIBs with effect from January 2021.

    In order to enhance participation and competition in primary and secondary markets for government debt, the government banned all institutional investors in National Savings Schemes from July 2020; and

    Most of the external debt was raised from multilateral and bilateral sources on concessional terms (low cost and longer tenor).

  • Inland Revenue officer suspended

    Inland Revenue officer suspended

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday suspended a BS-18 officer of Inland Revenue Service (IRS) for four months with immediate effect.

    A notification said that the FBR while exercising powers conferred under Rule 5 of the Civil Servants (Efficiency & Discipline) Rules, 2020, placed Muhammad Jamshed Khan (IRS/BS-18), presently posted as deputy commissioner, Regional Tax Office, Rawalpindi under suspension for a period of 120 days with immediate effect until further orders.

  • Member IR Operations receives complaints himself to eradicate corruption

    Member IR Operations receives complaints himself to eradicate corruption

    ISLAMABAD: Member Inland Revenue (Operations) will directly receive complaints against corruption in order to provide secure channel of lodging complaints and in this regard SOP has been devised for handling of complaints.

    The Circular No. 10 of 2021 – Operations issued on Monday, stated that in order to allay the fears of business community and citizen taxpayers, a convenient, and protected mechanism of filing complaints against corruption is being devised whereby all complaints would be received by Member IR Operation himself on an especially dedicated cell phone +92-0345-5555507; the cell phone would be in his own possession, exclusively.

    “The complaints would be opened, acknowledged, and treated as per law in a highly confidential manner.”

    The identity of the complainants would be immediately masked and encoded to safeguard them against any undue consequences.

    The standard operating procedure (SOP) for lodging and handling of complaints against field functionaries is as under:

    i. Complaints would be lodged through text message at cell No.. +92-345-5555507 – on Whatsapp, preferably.

    ii. In Whatsapp text option, the complainant would identify himself by writing his name, address, CNIC the case particular and his cell phone number.

    iii. The complainant would write the name(s) of the official(s) against whom the complaint is directed along with his/their designation, place of posting, and any other particulars, if available.

    iv. The complaint must be supported by some evidence such as audio or video recording, text message exchange with the FBR functionary or any other documents, which could be attached with the text message, or subsequently sent by hard mail. If no such evidence is readily available, and affidavit on a legal paper, clearly spelling out the allegation and the person against whom the allegations are leveled would suffice.

    v. Upon receipt of the complaint, a code number would be allotted to each complainant and his back-end identity data would be hidden beyond the access of field officers. This code number would help a complainant track progress on his complaint and the outcomes on it.

    vi. Depending on the nature of the complaint and the evidence provided, the matter would be taken to logical consequence in the shortest possible time.

    vii. Non-specific, unsupported or generalized complaints may not be processed.

    The FBR said that taxpayers could not lodge complaints of corruption, rent-seeking and unethical conduct against any FBR functionary without any fear of reaction or revenge. However, in order to maintain the integrity of the system and achieve its intended objectives, the complainants would not level generalized allegations, and instead, file solid complaints, duly supported by evidence, and affidavits against the delinquent functionaries so that the malaise of corruption could be eliminated from the revenue functions of the state.