Month: June 2021

FATF retains Pakistan in grey list

ISLAMABAD: The Finance Action Task Force (FATF) on Friday kept Pakistan in ‘grey list’ despite the country has made significant progress of addressing 26 action plan out of 27.

FATF President Dr Marcus Pleyer in a press conference announced that Pakistan will continue to remain on the increased monitoring list, also known as the grey list.

Admitting the performance of the country FATF President Dr Marcus Pleyer said: “Pakistan has made significant progress and it has largely addressed 26 out of 27 measures.”

Pleyer, however, added that the action plan on financial terrorism still needed to be addressed.

“In 2019, the regional partner of FATF identified problems in Pakistan’s anti-money laundering measures. But since then it has improved. There remains risk of money laundering and subsequently FATF had discussions with Pakistan.

“I want to thank the Pakistan government for their continued commitment to address the concerns and make the necessary changes they were asked to effect,” Pleyer said.

The FATF president said all action plan items needed to be addressed and goals fulfilled for countries to exit the grey list.

“All countries are equal. This is also our expectation from the Pakistan government.”

In its last presser following a plenary, on Feb 25, FATF President Dr Marcus Pleyer had said Pakistan remained under increased monitoring, adding, “while Islamabad has made significant progress, there remained some serious deficiencies in mechanisms to plug terrorism financing”.

Pakistan has been on the FATF’s grey list for deficiencies in its counter-terror financing and anti-money laundering regimes since June 2018.

Until the last assessment, Pakistan was found deficient in acting against organisations allegedly linked to the terror groups listed by the UN Security Council, prosecuting and convicting banned individuals and tackling smuggling of narcotics and precious stones.

June 25, 2021
FBR directs timely disposal of pension, retirement cases

ISLAMABAD: The Federal Board of Revenue (FBR) on Friday directed the field formation to ensure timely disposal of pension and retirement cases otherwise the officers concerned will be responsible for any lapse.

An official notification issued by the FBR stated that it is observed with serious concern that field formations while forwarding / submitting retirement cases / pension papers for the approval / signatures of competent Authority don’t follow the procedures of the Government and FBR’s instructions issued on the subject from time to time.

In some cases pension papers of officers / officials are received after their date of retirement. This at times causes embarrassment to the department.

The Pension Rules for Civil Servants stipulate the procedure and stages for disposal of pension cases (refer to S.No. 53 & 54 “A manual of pension procedures”).

As per the aforesaid rules, action on the pension papers of a civil servant should be initiated one year before a Government servant is due to retire, so that pension may be sanctioned a month before the date of his retirement.

Similarly, the Establishment Division’s Instructions, (conveyed to all ministries / departments, vide letter No. 330/RP/2016- WO(P) dated 12.05.2017) also emphasise that “the retirement Notifications / office orders of the retiring officers/officials shall be issued at least one year before retirement on attaining the age of superannuation”.

All Additional Commissioners / Deputy Commissioners, Additional Directors / Deputy Directors (HQ) are personally liable for timely submission of pension cases as per procedure / instructions issued by the Government.

In view of the above, the officers have been directed to ensure that cases of all officers / officials under your control retiring by 30.06.2022 are processed by 15.07.2021 positively. ADCIR / DC (HQs) shall personally be held responsible for any lapse in this regard.

June 25, 2021
Rupee strengthens by six paisas against dollar

KARACHI: The Pak Rupee made a gain of six paisas against the dollar on Friday owing to sufficient supply of the foreign currency during the day.

The rupee ended at Rs157.62 to the dollar as compared with last day’s closing of Rs157.68 in the interbank foreign exchange market.

Currency experts said that the rupee strengthened because a sufficient supply of the dollars in the shape of export receipts and workers’ remittances were seen during the day.

They said that the demand for the foreign currency remained high during the day due to corporate and import payments.

June 25, 2021

SBP issues customers exchange rates on June 25, 2021

KARACHI: The State Bank of Pakistan (SBP) on Friday issued the exchange rate of foreign currencies in the rupee in the open market.

The SBP said the data is compiled and disseminated for information only.

These Exchange Rates are an estimate of the Exchange Rates quoted by various Commercial Banks to their clients.

They are compiled from the Exchange Rate sheets issued daily by various Commercial Banks providing their indicative Exchange Rates for commercial transactions with customers.

CURRENCY	BUYING	SELLING
AED	42.8877	42.9827
AUD	119.5115	119.7741
CAD	127.8828	128.1619
CHF	171.5429	171.9229
CNY	24.4065	24.4570
EUR	188.0030	188.4276
GBP	219.2052	219.6892
JPY	1.4205	1.4238
SAR	41.9788	42.0710
USD	157.3937	157.7570

June 25, 2021

Domestic electricity consumers to pay tax on monthly bill above Rs25,000

ISLAMABAD: The tax authorities have imposed tax on domestic electricity consumers – whose monthly bill is Rs25,000 and above.

According to a commentary on budget 2021/2022 by KPMG Taseer Hadi & Co. currently, tax collection on domestic consumers of electricity is prescribed under section 235A of Income Tax Ordinance, 2001 whereby 7.5 per cent advance tax is required to be collected if the monthly electricity bill is of Rs. 75,000 or more.

Such advance tax is adjustable against tax liability of such person. Whereas, tax collection on commercial and industrial consumer of electricity is prescribed under section 235 of the Income Tax Ordinance, 2001.

The Finance Bill 2021 proposed to withdraw section 235A and also proposes to insert requirement of tax collection on domestic consumers of electricity in section 235 based on following criteria:

—if the consumer’s name is not appearing in Active Taxpayers List (ATL);

—monthly bill is Rs. 25,000 or more;

—tax rate will be 7.5 per cent;

—tax collection on annual bill amount up to Rs360,000 will be minimum tax;

—tax collection on monthly bill over and above Rs. 30,000 will be adjustable against tax liability of a person.

The Bill further proposed to exclude those persons whose entire income is subject to final tax or minimum tax regime under any provisions of the Income Tax Ordinance, 2001 from the application of the above section.

June 24, 2021
PTA renews licenses of three cellular phone operators in AJK, Gilgit-Baltistan

ISLAMABAD: Pakistan Telecom Authority (PTA) has renewed licenses of three leading cellular mobile operators for Azad Jammu and Kashmir and Gilgit Baltistan.

The ceremony for renewal of licenses was held in PTA headquarters, Islamabad on Thursday.

Three Cellular Mobile Operators i.e. Telenor Pakistan, PMCL (Jazz) and PTML (Ufone) have deposited payment (50 per cent of the PTA determined license fee) amounting to Rs3.19 Billion against their license renewal fee with PTA.

The event was attended by Federal Secretary for IT & Telecommunication, Dr. Muhammad Sohail Rajput, Chairman PTA, Major General Amir Azim Bajwa (R); Member Finance PTA, Muhammad Naveed and Member Compliance & Enforcement PTA, Dr. Khawar Siddique Khokhar; Executive Director, Frequency Allocation Board (FAB); Joint Secretary Gilgit Baltistan Council; Deputy Secretary (Finance) and Deputy Secretary (Welfare & Development) AJ&K Council and senior officers of PTA. CEOs of Telenor, Jazz and Ufone along with senior representatives of CMOs also attended the event.

On the occasion, Chairman PTA lauded the efforts of the cellular operators for playing a crucial role in providing connectivity across these regions.

He also appreciated the tireless efforts of concerned officials of PTA, FAB and MoIT for timely conclusion of the renewal process. He further stated that AJ&K and GB are the prime areas of tourism in Pakistan and the license renewal will pave the way for provision of 3G/4G and Next Generation Mobile Services to the consumers of these areas as well to the tourists.

Continuous efforts are being made to bring state of the art telecommunication services to far flung areas enabling access to a multitude of opportunities for businesses, education and health.

On this occasion Secretary IT & T, Dr. Muhammad Sohail Rajput congratulated the mobile operators on renewal of licenses. He said that AJ&K and GB have immense importance in government policies, and it is the government’s priority to provide advanced telecom services in these regions. He said that there are vast opportunities for public-private collaboration in various sectors including telecoms.

It is pertinent to mention that due to license renewals, this will not only contribute towards uninterrupted provision of better telecom services to the people of AJ&K and GB but will also help in promotion of competition and investment in the telecom sector.

June 24, 2021
Investors allowed carry forward capital losses on disposal of securities

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday allowed investors of Pakistan Stock Exchange (PSX) to carry forward capital losses for calculation of capital gain tax.

In this regard the FBR issued SRO 801(I)/2021 to make amendment in the Income Tax Rules, 2002.

The FBR previously issued draft rules through SRO 639(I)/2021 dated June 01, 2021 for seeking feedback from stakeholders.

As per the SRO a substitution in sub-rule (3) of Rule 13D of the Income Tax Rules, 2002 has been made. According to the amendment:

(3) Capital loss arising on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of listed securities chargeable to tax during the tax year shall be carried forward to the following tax year and set off only against the gain of the person from disposal of listed securities chargeable to tax but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first determined.

In Rule 13N, the substitution in sub-rule (7), as:

(7) Capital loss arising on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of listed securities chargeable to tax during the tax year shall be carried forward to the following tax year and set off only against the gain of the person from disposal of listed securities chargeable to tax but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first determined.

A new sub-rule after the sub-rule 7 has been inserted, which is:

(7A) Capital loss arising on disposal of listed securities in tax year 2019 and onward shall be carried forward to a subsequent tax year for setting off, in the manner prescribed as follow:

(a) The setting off of eligible capital loss carried forward from previous tax year(s) shall be made by National Clearing Company of Pakistan Limited (NCCPL) under this rule, only in respect of a taxpayer whose name appear or appeared in the Active Taxpayers List (ATL) pertaining to the tax year to which such loss pertains as witnessed by the ATL available on FBR’s website after updation for the tax year to which such loss pertains;

(b) adjustment of carried forward capital loss(es) shall be made on monthly basis by the NCCPL from the first month of updation of ATL for the tax year and on first-in first-out (FIFO) basis;

(c) The NCCPL may requisition date wise position of ATL in respect of particular taxpayer from Information Technology (IT) Wing of the FBR as and when required;

(d) At the end of relevant tax year, NCCPL shall maintain tax year-wise balance of unexpired carried forward capital losses separately identifiable for computation of limitation period for each ta year; and

(e) The manner of adjustment of capital loss carried forward from previous tax years will be in accordance with illustration given in clause (zf) of Rule 13P.

June 24, 2021
Gas supply suspension: NKATI appeals PM to save industry

KARACHI: Faisal Moiz Khan, the President of the North Karachi Association of Trade & Industry (NKATI), has issued a fervent appeal to Prime Minister Imran Khan to intervene and rescue Karachi’s industries from the brink of disaster.
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June 24, 2021
FBR manipulates budget 2021/2022, proposals not to provide relief to business community: FPCCI

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has alleged Federal Board of Revenue (FBR) for proposing and manipulating the budget 2021/2022, as the proposals will neither provide relief to business community nor it will help in economic growth.
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June 24, 2021
KSE-100 index gains 62 points in narrow range trading

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a modest upswing on Thursday, with the benchmark KSE-100 index gaining 62 points in a day marked by narrow range trading.
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June 24, 2021