Pkrevenue.com

Day: September 8, 2021

  • PHMA organizes seminar on export facilitation scheme

    PHMA organizes seminar on export facilitation scheme

    KARACHI: A seminar was organized by the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) in collaboration with the Federal Board of Revenue (FBR) on new Export Facilitation Scheme 2021 (EFS 2021).

    The export facilitation scheme was notified through SRO957(I)/2021 dated July 30, 2021.

    The seminar was organized on Wednesday simultaneously at PHMA House, Karachi, Lahore, Faisalabad & Sialkot.

    A large number of textile exporters participated physically at PHMA Offices and also joined this session online on Zoom and YouTube.

    Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim and Moeen Afzal, Additional Collector, Model Collectorate of Customs (Exports) Port Qasim participated from Customs, Federal Board of Revenue to brief the salient features and registration process of Export Facilitation Scheme 2021 (EFS 2021).

    Muhammad Jawed Bilwani Chief Coordinator & Former Central Chairman PHMA welcomed the Customs Officials at PHMA for this orientation seminar to enlighten the exporters about the main features of EFS and to answer questions asked by exporters.

    He appreciated that PHMA and FBR jointly believe in facilitating the exporters in order to contribute in the economic prosperity of Pakistan.

    Both are working closer like hands in gloves in order to facilitate the taxpayers and exporters. With the best efforts and productive proposals of PHMA, the FBR’s FASTER and WEBOC Systems have been improved and working efficiently and exporters are getting their refunds online smoothly and all credit goes to the then Member IR Operations & sitting Chairman FBR, Dr. Muhammad Ashfaq Ahmed, Member Customs Operations FBR Syed Muhammad Tariq Huda and their team who eliminated human intervention and brought automation and reforms in the FBR System to facilitate the exporters.

    He also appreciated the Government’s initiative of the “Pakistan Single Window (PSW)” portal is to provide a single electronic platform for facilitating compliance with the regulatory regime for cross-border trade in Pakistan.

    Bilwani assured that PHMA shall also extend complete support to Customs with regards to the implementation of EFS 2021. PHMA has also introduced EFS Help Desk at its RDA Cell to support member exporters.

    Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim addressing the leading exporters stated that the FBR believes in maximum facilitation to exporters enabling them to enhance exports to ultimately benefit the country to earn foreign exchange. He apprised that the FBR has been continuously working to improve and develop the taxation system through reforms and automation.

    In this connection, automation has been enhanced and public dealing has become limited particularly for the exporters. Introduction of export facilitation scheme 2021 is another milestone step from Customs to provide three scheme i.e. Export Oriented Unit, Manufacturing Bond, DTRE under a unified scheme which will benefit exporters particularly SMEs.

    The new scheme is simplified wherein exporters can apply online without visiting Custom House. Focal Person shall also be appointed to promptly address the queries and maximize facilitation to exporters.

    Moeen Afzal Additional Collector, Model Collectorate of Customs (Exports) Port Qasim gave a detailed presentation on the main feature of Export Facilitation Scheme 2021 wherein he informed that the new scheme will run parallel with existing schemes such as Manufacturing Bond, DTRE and Export Oriented Schemes for two years.

    The existing old schemes shall be phased out in the next two years and will be fully replaced by Export Facilitation Scheme-2021. The EFS 2021 Rules can be accessed at the official website of the FBR.

    The powers, functions and role of the Input-Output Coefficient Organisation (IOCO) under the new scheme has also been revised. The IOCO Director shall upload the value of input.

    It is expected that the Export Facilitation Scheme 2021 will reduce the cost of doing business and cost of tax compliance, improve ease of doing business, reduce liquidity problems of exporters by eliminating sales tax refunds and duty drawbacks for the users of the scheme, and shall attract more users and shall ultimately promote exports. Inputs include all goods (imported or procured local) for the manufacture of goods to be exported.

    These include raw materials, spare parts, components, equipment, plant, and machinery. No duty and taxes shall be levied on inputs imported by the authorized users and local supplies of inputs to the authorized users shall be zero-rated.

    Through this new scheme, Common Export House will import inputs duty and tax-free for subsequent sale to the authorized users especially SMEs. This scheme will encourage new entrants and SMEs.

    This scheme will be completely automated under WeBOC and PSW where users of the scheme and regulators (IOCO, Regulator Collector, PCA etc.) shall be integrated through WeBOC and PSW and communicate through these systems.

    In the end, exporters asked several questions related to the new schemes which were answered by the Collector and Additional Collector, Model Collectorate of Customs (Exports) Port Qasim.

  • Ericsson strengthens network services portfolio

    Ericsson strengthens network services portfolio

    KARACHI:  Ericsson has strengthened its network services portfolio with the Intelligent Deployment solution – an agile, digital, and modular suite of tools and services that enable communications service providers to roll out, expand, and upgrade networks based on their specific needs and those of their customers, a statement said on Wednesday.

    With technology advancing rapidly, networks are becoming more complex and diverse. This places an increasing demand for a network deployment best suited to the needs of service providers, with a quick return on investments and future proof.

    With this in mind, Ericsson has redesigned network rollout for the 5G age with Intelligent Deployment. As the building block for optimum network life cycle management, it connects network design, installation, integration, acceptance, maintenance, and services evolution.

    The solution comprises enablers such as artificial intelligence (AI), automation, and a data-driven cloud-based architecture that support different functionalities service providers can use such as Intelligent Site Engineering, Intelligent Integration, and Remote Access.

    Intelligent Deployment will deliver the right network at the right time and use network data for continuous development and improvement. Data-driven and digitalized processes allow service providers to make network management decisions quicker and more effectively to meet market and user expectations. The integration of AI will ensure the evolution of the network with the changing times.

    Nello Califano, Head of Strategy and Portfolio Management, Ericsson Business Area Networks, says: “With our Intelligent Deployment solution, we are vastly improving the way we deploy networks, making it more agile, flexible, and responsive to customer needs. This means we can deliver parts of our portfolio to service providers based on their specific requirements. We use extensive data insights to offer new services as well as pre-empt problems when introducing intelligent monitoring of the network even after the end of deployment. By investing more in our network services, we create better solutions for our customers.”

    The solution includes outcome-based (buying professional services), subscription-based (buying access to standalone capabilities or to the entire offering), or a mix of both as and when needed for the entire intelligent deployment process or specifically for network deployment services.

    This enables service providers to secure higher accuracy, transparency, and cost-efficiency from site survey to acceptance, more flexibility change management, and faster time to market.

    Intelligent Deployment is built on trust and data integrity, affording service providers an end-to-end information process, guiding the workflow at every stage of their services. At the same time, it will ensure the security and safety of data, providing user-friendly solutions and adopting any legal restrictions of the country where they operate.

    In the UK, Vodafone is using Ericsson’s Intelligent Deployment solutions to speed up network upgrades. Drones and Lidar-based 3D technology are collecting high-definition imagery and data across 70 sites to deliver more digitalized and efficient network deployment.

    Ericsson organizes virtual event for Jazz Pakistan
  • PM praises investment of Toyota Motors

    PM praises investment of Toyota Motors

    ISLAMABAD: Prime Minister Imran Khan on Wednesday praised Toyota Motors for investing $100 million for locally production of hybrid electric vehicles.

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  • Payment to non-resident persons chargeable to tax

    Payment to non-resident persons chargeable to tax

    Section 152 of Income Tax Ordinance, 2001 describes the payment to non-resident persons chargeable to tax.

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  • Financing for Mera Pakistan Mera Ghar gains momentum

    Financing for Mera Pakistan Mera Ghar gains momentum

    KARACHI: State Bank of Pakistan (SBP) on Wednesday said that as a result of numerous measures of the SBP and full support of the government, bank lending for the government’s flagship markup subsidy scheme, commonly known as Mera Pakistan Mera Ghar (MPMG), has picked up momentum.

    Since the launch of the scheme, applications of Rs 154 billion under MPMG have been received by banks and banks have approved housing finance of over Rs 59 billion up till August 31, 2021. Similarly, the pace of disbursement under MPMG that was initially slow because of a number of factors, including the availability of housing units, has also picked up.

    By August 31, 2021, disbursement under the scheme has reached Rs 11.5 billion, showing an increase of around Rs 3.8 billion or 49 per cent in August 2021.

    On average, to date banks have approved 38 percent of the amount applied and 19 percent of the approved amount has been disbursed.

    These approval and disbursement ratios have similarly risen over the past few months as banks have put in place the needed upfront investment in procedures and technology to process applications for low-cost housing.

    It would be pertinent to mention here that banks disbursed amounts in different stages of construction or purchase. Thus the pace of disbursement is contingent upon the speed of construction and completion of the purchasing process.

    Since the announcement of MPMG scheme last year, SBP has taken various enabling steps such as introducing standardized and simple application form; adopting an informal income assessment model; providing relaxations in prudential regulations; establishing helpdesks at all SBP field offices; and, designing a complaint portal supported by a network of focal persons of all banks across all geographical areas.

    On the instructions of SBP, banks are accepting MPMG applications from over 8,000 dedicated branches across the country. Further, SBP has also allocated targets to each bank under MPMG.

    An e-tracking system within each bank and a dedicated joint call center for the facilitation of the applicants have also been established. Naya Pakistan Housing Development Authority (NAPHDA) and Pakistan Banks’ Association (PBA), a representative body of banks, are fully supporting MPMG.

    It is expected that with the ongoing efforts by SBP, Government, and Banks, bank finance for MPMG will gain further momentum in the days to come.

    PM launches house financing scheme for NRPs
  • Stocks sink on Pakistan Indexes downgraded by MSCI

    Stocks sink on Pakistan Indexes downgraded by MSCI

    KARACHI: The stock market fell by 333 points on Wednesday as MSCI in its verdict decided to downgrade Pakistan from Emerging Markets to Frontier Market.

    The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) ended at 46,397 points from the previous day’s closing of 46,730 points.

    Analysts at Topline Securities said that after a slightly positive opening benchmark KSE-100 Index came under pressure as MSCI in its verdict has decided to downgrade Pakistan from Emerging Markets to Frontier Market which led the market to make an intraday low of 402 points.

    Major stock negativity was witnessed from LUCK, ENGRO and OGDC which collectively dented the Index by 171 points.

    On the volume and value front, the total traded volume and value clocked in at 477.7 million shares and Rs14.6 billion, respectively.

    TPL was today`s volume leader with 39.04 million shares.

    MSCI to reclassify Pakistan Indexes to frontier market
  • Provision related to withholding tax on profit on debt

    Provision related to withholding tax on profit on debt

    Section 151 of Income Tax Ordinance, 2001 explains the provision related to withholding tax on profit on debt.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following is the text of Section 151 of Income Tax Ordinance, 2001:

    151. Profit on debt. — (1) Where –

    (a) a person pays yield on an account, deposit or a certificate under the National Savings Scheme or Post Office Savings Account;

    (b) a banking company or financial institution pays any profit on a debt, being an account or deposit maintained with the company or institution;

    (c) the Federal Government, a Provincial Government or a Local Government pays to any person profit on any security other than that referred to in clause (a) issued by such Government or authority; or

    (d) a banking company, a financial institution, a company referred

    to in 10 sub-clauses (i) and (ii) of clause (b) of sub-section (2) of section 80, or a finance society pays any profit on any bond, certificate, debenture, security or instrument of any kind (other than a loan agreement between a borrower and a banking company or a development finance institution) to any person other than financial institution.

    the payer of the profit shall deduct tax at the rate specified in Division IA of Part III of the First Schedule from the gross amount of the yield or profit paid as reduced by the amount of Zakat, if any, paid by the recipient under the Zakat and Ushr Ordinance, 1980 (XVII of 1980), at the time the profit is paid to the recipient.

    (1A) Every special purpose vehicle or a company, at the time of making payment of a return on investment in sukuks to a sukuk holder shall deduct tax from the gross amount of return on investment at the rate specified in Division IB of Part III of the First Schedule.

    (2) This section shall not apply to any profit on debt that is subject to sub-section (2) of section 152.

    (3) Tax deductible under this section shall be a minimum tax on the profit on debt arising to a taxpayer, except where —

    (a) taxpayer is a company; or

    (b) profit on debt is taxable under section 7B.

    (Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

    Withholding tax rates on interest income for 2021-2022
  • Rupee rebounds against dollar in interbank

    Rupee rebounds against dollar in interbank

    KARACHI: The Pak Rupee (PKR) made a recovery against the dollar on Wednesday. The local currency gained value on inflows of export receipts and workers’ remittances.

    The rupee ended at Rs167.25 to the dollar from the previous day’s closing of Rs167.63 in the interbank foreign exchange market.

    Currency experts said that inflows of export receipts and workers’ remittances helped the local unit to recover against the greenback.

    The local currency witnessed a massive decline during the past couple of days.

    The rupee has witnessed a decline since the start of the current fiscal year. The rupee lost around Rs9.71 against the dollar since July 01, 2021.

    The experts attributed the fall in rupee value to external payment which kept the dollar demand higher during the current fiscal year.

    The rupee is near to the all-time low of Rs168.44 against the dollar, which was recorded on August 26, 2020.

    Dollar jumps up to Rs167.63 in interbank forex market
  • KIBOR rates on September 08, 2021

    KIBOR rates on September 08, 2021

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the following Karachi Interbank Offered Rates (KIBOR) on September 08, 2021.

     TenorBIDOFFER
    1 – Week6.897.39
    2 – Week6.947.44
    1 – Month7.017.51
    3 – Month7.147.39
    6 – Month7.297.54
    9 – Month7.407.90
    1 – Year7.497.99
    KIBOR rates on September 07, 2021
  • Person paying dividends required to withhold tax

    Person paying dividends required to withhold tax

    Section 150 of the Income Tax Ordinance, 2001, mandates that every person paying dividends must withhold tax.

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