Pkrevenue.com

Month: April 2021

  • Sales of POL products surge by 44pc in March

    Sales of POL products surge by 44pc in March

    KARACHI: The sales of petroleum products have climbed up by 44 percent year on year (YoY) in March 2021 due to low base of March 2020 as the government last year enforced lockdown that resulted in slowdown in sales volume.

    Analysts at Arif Habib Limited said that total petroleum and lubricant sales clocked-in at 1.49 million tons in March 2021, depicting a gigantic growth of 44 percent YoY (ex- furnace oil growth of 32 percent YoY and 4 percent MoM) and 6 percent MoM due to extra working days compared to February and low base of March 2020 given the incumbent government enforced a lockdown last year resulting in a slowdown in sales volumes.

     The growth in sales volumes is primarily attributable to: i) Economic growth driving retail fuel sales, ii) Surge in trade activity (exports and imports) and better agricultural yields resulting in higher sales of HSD, iii) double digit growth in automobile offtake, iv) preference to private transport over public transport to reduce chances of contracting Covid-19, and v) strict surveillance on borders and various parts of country in order to control supply of illegal or dumped fuel from Iran.

    During 9MFY21, sales of total petroleum products increased by 15 percent YoY to 14.15 million tons against 12.27 million tons in 9MFY20.

    Dissection of data revealed that major contribution to growth came from HSD and FO with offtake undergoing a jump to 5.38 million tons and 2.30 million tons, up by 17 percent and 43 percent YoY against 4.60 million tons and 1.61 million tons in SPLY.

  • Key changes made through Tax Laws (Second Amendment) Ordinance, 2021

    Key changes made through Tax Laws (Second Amendment) Ordinance, 2021

    KARACHI: The federal government recently introduced amendments to Income Tax Ordinance, 2001 through a presidential ordinance namely Tax Laws (Second Amendment) Ordinance, 2021.

    According to a chartered accountant firms following are the key changes made through the Amendment Ordinance:

    (1) Exemption for inter corporate dividend for those group structures which are eligible for group relief has been withdrawn. This amendment needs to be reconsidered in view of the overall framework and policy for promoting group / holding company structures.

    (2) Donations eligible for direct deduction from income has been transposed into tax credit regime. As a result of that, overall upper limit for tax break for the donors, in respect of charitable donations, has been reduced.

    (3) Tax credit regime for the NPOs has been further simplified and clarified. Certain religious and welfare organisations and international NGOs are allowed to avail tax credit regime subject to registration under the relevant laws and regulations.

    (4) Tax exemptions of following businesses have been transposed into full / partial tax credit regime, resulting that these businesses can now avail tax breaks subject to certain compliances:

    (i) coal mining projects of Sindh

    (ii) startup businesses certified by Pakistan software board

    (iii) export of software, IT and IT enabled services.

    (iv) greenfield projects / ship building

    (v) undertakings engaged in manufacturing of plant and machinery with dedicated use of generation of renewable energy.

    Appropriate amendments are required to be made in the relevant provisions and SROs so that those eligible for tax credit regimes are issued exemption certificates and they do not suffer tax Withholdings which are eventually refundable.

    (5) Tax credit for enlistment of a company on stock exchange has been withdrawn.

    (6) Certain penalty provisions have been rationalised.

    (7) Number of tax exemptions and concessions in the Second Schedule have been withdrawn, some of which were either person-specific or were timebound whereas some of the exemptions/ concessions have been transposed into tax credit regime. Major businesses affected by withdrawal of exemptions / concessions include Modarabas, LNG terminal owners & operators, services/contracts rendered/executed outside Pakistan and those IPPs who will enter into agreement or to whom letter of intent will be issued for setting up of power generation project on or after July 1, 2021.

  • FBR transfers BS-21 officers of Pakistan Customs

    FBR transfers BS-21 officers of Pakistan Customs

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified transfer and postings of BS-21 officers of Pakistan Customs Service (PCS) with immediate effect.

    The FBR notified transfers of following officers:

    01. Dr. Zulfikar Ali Chaudhary (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector of Customs Enforcement (Central), Lahore from the post of Director General, Directorate General of Customs Valuation, Karachi.

    02. Faiz Ahmad (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector of Customs Appraisement & Facilitation (Central), Lahore from the post of Chief Collector Customs Enforcement (Central), Lahore.

    03. Dr. Fareed Iqbal Qureshi (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Training & Research from the post of (Customs), Karachi Chief Collector Customs Appraisement and Facilitation (Central), Lahore.

    04. Muhammad Iqbal Bhawana (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Law & Prosecution, Islamabad from the post of Collector, Collectorate of Customs (Adjudication-II), Karachi.

    05. Ms. Shahnaz Maqbool (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Customs Valuation, Karachi from the post of Member, Federal Board of Revenue (Hq), Islamabad.

    06. Ms. Seema Raza Bokhari (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Post Clearance Audit & Internal Audit, (Stationed at Islamabad) from the post of Member, Federal Board of Revenue (Hq), Islamabad.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • Rupee weakens by 25 paisas on import, corporate payments

    Rupee weakens by 25 paisas on import, corporate payments

    KARACHI: The Pak Rupee weakened by 25 paisas against the dollar on Friday owing to demand for import and corporate payments.

    The rupee ended Rs153.55 to the dollar from previous day’s closing of Rs155.30 in the interbank foreign exchange market.

    Currency dealers said that higher demand of the foreign currency for import and corporate payments depreciated the rupee value.

    They said that due to quarter ending corporate buyers were seen active in purchasing the foreign currency for repatriation of profit and dividend to their parent companies abroad.

    Similarly, the higher import bill in March 2021 also put pressure on demand for the dollar.

  • Shahid Baloch posted as CCIR LTO Karachi

    Shahid Baloch posted as CCIR LTO Karachi

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday posted Shahid Iqbal Baloch, a BS-21 officer of Inland Revenue Service (IRS), as Chief Commissioner Inland Revenue (CCIR) of Large Taxpayers Office (LTO) Karachi with immediate effect.

    The FBR posted the chief commissioner of LTO Karachi on a regular basis after the retirement of Badaruddin Ahmed Qureshi almost two months after.

    Badaruddin Ahmed Qureshi was retired on February 09, 2021 and since then Amir Ali Khan Talpur, the chief commissioner –IR of Regional Tax Office-II was given additional charge of the chief commissioner of LTO Karachi.

    The LTO Karachi is the largest revenue collecting arm of the FBR and it contributes around 35 percent of the total revenue at the national level.

    Sources at the LTO Karachi said that major decisions were pending due to the absence of a regular chief of the tax office.

    The FBR also notified following transfer and postings on Friday:

    01. Shaban Bhatti (Inland Revenue Service/BS-21) has been transferred and posted as Director General, (SPR&S) Federal Board of Revenue (Hq), Islamabad from the post of Member, Federal Board of Revenue (Hq), Islamabad.

    02. Shahid Iqbal Baloch (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue Large Taxpayers Office, Karachi from the post of Member, Federal Board of Revenue (Hq) (Stationed at Karachi).

    03. Muhammad Iqbal (Inland Revenue Service/BS-21) has been transferred and posted as Director General, Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad relieving Dr. Bashirullah Khan of his additional charge. The officer will also continue with the additional responsibility of DG, DNFBPs. He was transferred from the post of Member, (Admin Pool) Federal Board of Revenue (Hq), Islamabad.

    04. Ms. Aiysha Khalid (Inland Revenue Service/BS-21) has been transferred and posted as Director General, (WHT) Federal Board of Revenue (Hq), Islamabad from the post of Member, (Admin Pool) Federal Board of Revenue (Hq), Islamabad.

    05. Muhammad Imtiaz (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Admn Pool) Federal Board of Revenue (Hq), Islamabad from the post of Director General, (OPS) (WHT) Federal Board of Revenue (Hq), Islamabad.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FTO recommends disabling sales tax registration as soon application for de-registration received

    FTO recommends disabling sales tax registration as soon application for de-registration received

    ISLAMABAD: Federal Tax Ombudsman (FTO) has recommended disabling sales tax registration as soon application received for de-registration.

    The FTO submitted proposals for budget 2021/2022, stating that in order to stop misuse of registration for issuing fake invoices, immediate disabling of the registration was proposed in electronic system as soon as the application for de-registration was received.

    Sales Tax Registration of commercial importers was proposed to be allowed only to Income Tax filers along with other necessary cautions (i.e. declaration of Pakistan Customs Tariff (PCT) headings of the products they trade in) to check bogus registration.

     Following budget proposals were also sent to FBR:

    • to provide for immediate disabling of the registration in electronic system, pending final de-registration, as soon as the application for de-registration was received;

    • to prescribe a list of documents/records to accompany the de-registration applications for the purpose of sub-rule (2) of rule 11; and

    • suitable amendment to be made in rule 12(a)(vii) so that the Commissioner shall issue the orders of revocation of suspension within two weeks from the last date prescribed for issuance of show cause notice.

  • Headline inflation increases by 9.1 percent in March

    Headline inflation increases by 9.1 percent in March

    ISLAMABAD: Headline inflation based on Consumer Price Index (CPI) has increased by 9.1 percent on year on year basis in March 2021 as compared to an increase of 8.7 percent in February 2021 and 10.2 percent in March 2020, Pakistan Bureau of Statistics (PBS) said on Thursday.

    On month-on-month basis, it increased by 0.4 percent in March 2021 as compared to an increase of 1.8 percent in the previous month and an increase of 0.02 percent in March 2020.

    CPI inflation Urban, increased by 8.7 percent on year-on-year basis in March 2021 as compared to an increase of 8.6 percent in the previous month and 9.3 percent in March 2020.

    On month-on-month basis, it increased by 0.3 percent in March 2021 as compared to an increase of 2.3 percent in the previous month and an increase of 0.1 percent in March 2020.

    CPI inflation Rural, increased by 9.5 percent on year-on-year basis in March 2021 as compared to an increase of 8.8 percent in the previous month and 11.7 percent in March 2020.

    On month-on-month basis, it increased by 0.5 percent in March 2021 as compared to an increase of 1.1 percent in the previous month and a decrease of 0.1 percent in March 2020.

    Sensitive Price Indicator (SPI) based inflation on YoY increased by 18.7 percent in March 2021 as compared to an increase of 11.9 percent a month earlier and an increase of 11.8 percent in March 2020.

    On MoM basis, it increased by 5.7 percent in March 2021 as compared to an increase of 3.1 percent a month earlier and a decrease of 0.3 percent in March 2020.

    Wholesale Price Index (WPI) based inflation on YoY basis increased by 14.6 percent in March 2021 as compared to an increase of 9.5 percent a month earlier and an increase of 9.3 percent in March 2020.

    WPI inflation on MoM basis increased by 3.7 percent in March 2021 as compared to an increase of 2.2 percent a month earlier and a decrease of 0.9 percent in corresponding month i.e. March 2020.

  • FBR transfers IR BS-20 officers

    FBR transfers IR BS-20 officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified transfers and postings of BS-20 officers of Inland Revenue Service (IRS).

    Following officers have been transferred:

    01.Tariq Hussain Sheikh (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Federal Board of Revenue (Hq), Islamabad / Project Director (Track and Trace System / Video Analytic System), Federal Board of Revenue (HQ), Islamabad from the post of Chief, (ST & FE) Federal Board of Revenue (Hq), Islamabad.

    02. Muhammad Bilal Malik (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals-IX), Lahore from the post of Additional Commissioner, Regional Tax Office, Lahore.

    03. Ms. Iram Shabbir (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate General of Training & Research (Inland Revenue), Lahore from the post of Additional Commissioner, Regional Tax Office, Lahore.

    04. Javed Iqbal (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Enforcement-I) Corporate Tax Office, Karachi from the post of Additional Commissioner, Large Taxpayers Office, Karachi.

    05. Sajjad Amjad (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Sahiwal Zone) Regional Tax Office, Sahiwal from the post of Additional Director, Directorateof Intelligence & Investigation (Inland Revenue), Faisalabad.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • SRB posts 22.7pc growth in March collection

    SRB posts 22.7pc growth in March collection

    KARACHI: Sindh Revenue Board (SRB) has registered 22.7 percent growth in collection of sales tax on services during the month of March 2021 despite adverse effect of coronavirus on businesses.

    According to data released by the provincial revenue authority, the collection was Rs11.46 billion in March 2021 as compared with Rs9.34 billion in the same month of the last year.

    “The growth in revenue is phenomenal when viewed in the context of coronavirus effect on the businesses and the general slowdown of economy,” according to a SRB statement.

    During first three quarters of fiscal year 2020/2021, the SRB collected an amount of Rs88.54 billion as compared with Rs77.9 billion in the first three quarters of 2019/2020, showing a growth of 13.66 percent.

    The SRB attributed the revenue growth of 22.7 percent during March 2021 to the continued trust and cooperation of taxpayers, the continuous support by the Sindh government and the relentless efforts of the SRB officers and the staff.

    The SRB is focusing on assigned revenue collection target of Rs135 billion for the current fiscal year, despite the adverse factors such as low economic growth and the resurge of COVID-19.

  • Pakistan’s foreign exchange reserves increase by $401 million to $20.836 billion

    Pakistan’s foreign exchange reserves increase by $401 million to $20.836 billion

    KARACHI – In a significant development, Pakistan’s liquid foreign exchange reserves witnessed a robust increase of $401 million, reaching $20.836 billion by the week ending March 26, 2021, according to the State Bank of Pakistan (SBP).

    (more…)