ISLAMABAD: The Federal Cabinet on Tuesday approved a significant reduction in additional customs duty on the import of auto parts, lowering it from seven percent to two percent. This decision aims to boost the indigenous production of vehicles in Pakistan and promote local manufacturing.
(more…)Day: September 14, 2021
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KTBA demands barcode printing on sales tax notices
KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday demanded the tax authorities to implement printing of barcodes on all communication under the sales tax regime.
In this regard, the KTBA has sent a letter to the chairman of the Federal Board of Revenue (FBR). The tax bar demanded the chairman of ensuring the implementation of barcode printing on all notices of sales tax.
The KTBA and its members are consistently receiving unauthorized and designed notices/ communications from the field formations.
In the year 2015, the FBR introduced a scheme of using barcodes on notices/communications under the income tax regime, which eliminated unauthorized notices.
As of today, declarations under the sales tax regime are broadly regulated through old e.fbr portal; on the other hand, the field formations have started issuing notices for audit and late filing via IRIS. However, in addition to the above, notices on various counts are issues manually which subsequently are withdrawn for obvious reasons, the tax bar said.
The KTBA recommended that the practice of communicating all notices and correspondence in the sales tax regime in manual should be replaced with a barcode methodology with an option to reply online as in the case of the income tax regime.
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Stocks decline by 379 points on selling pressure
KARACHI: The stocks witnessed a decline of 379 points on Tuesday owing to selling pressure witnessed during the day. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 46,891 points as against the previous day’s closing of 47,270 points.
Analysts at Arif Habib Limited said that the market tumbled mainly as a result of redemptions at mutual funds’ end.
On the other hand, negative news triggers on the slippage of PKR parity with USD, US State Secretary’s hint on revisiting US – Pakistan relations and pending IMF review had bearing on the Index.
Selling was observed across the board with Technology, E&P, Cement and Steel sectors leading the downside on Index.
Financial results announced today also failed to impress the investors. Refinery sector faced the onslaught with failure in approval of Refinery Policy as reported in newspapers, especially BYCO.
Among scrips, BYCO led the volumes with 71.6 million shares, followed by TELE (51.2 million) and WTL (25.3 million).
Sectors contributing to the performance include Cement (-96 points), Refinery (-52 points), E&P (-45 points), Technology (-39 points) and O&GMCs (-28 points).
Volumes increased from 395.8 million shares to 479.8 million shares (+21 per cent DoD). Average traded value, on the other hand, declined by 7 per cent to reach US$ 89.0 million as against US$ 95.8 million.
Stocks that contributed significantly to the volumes include BYCO, TELE, WTL, ANL and HUMNL, which formed 40 per cent of total volumes.
Stocks that contributed positively to the index include HBL (+36 points), HMB (+22 points), FFC (+9 points), DCR (+6 points) and PKGS (+5 points). Stocks that contributed negatively include LUCK (-44 points), TRG (-24 points), OGDC (-23 points), DGKC (-19 points) and BYCO (-18 points).
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Tax authorities can take help from police, other agencies
Section 178 of the Income Tax Ordinance, 2001, as amended by the Finance Act, 2021, empowers tax authorities to seek assistance from various entities, including the police, Customs officers, and other government agencies.
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KIBOR rates on September 14, 2021
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the following Karachi Interbank Offered Rates (KIBOR) on September 14, 2021.
Tenor BID OFFER 1 – Week 6.90 7.40 2 – Week 6.95 7.45 1 – Month 7.03 7.53 3 – Month 7.21 7.46 6 – Month 7.47 7.72 9 – Month 7.53 8.03 1 – Year 7.60 8.10 -
Commissioner can select taxpayers for audit
A commissioner of Inland Revenue has power to select taxpayers for audit under Section 177 of Income Tax Ordinance, 2001.
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Commissioner empowered to call for any record
Section 176 of Income Tax Ordinance, 2001 explains that the commissioner is empowered to call for any records.
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 176 of Income Tax Ordinance, 2001:
176. Notice to obtain information or evidence.— (1) The Commissioner may, by notice in writing, require any person, whether or not liable for tax under this Ordinance –
“(a) to furnish to the Commissioner or an authorised officer, any information relevant to any tax leviable under this Ordinance or to fulfill any obligation under any agreement with foreign government or governments or tax jurisdiction, as specified in the notice; or”; and
(b) to attend at the time and place designated in the notice for the purpose of being examined on oath by the Commissioner or an authorised officer concerning the tax affairs of that person or any other person and, for that purpose, the Commissioner or authorised officer may require the person examined to produce any accounts, documents, or computer-stored information in the control of the person; “or”
(c) the firm of chartered accountants, or a firm of cost and management accountants as defined under the Cost and Management Accountants Act, 1966 (XIV of 1966), as appointed by the Board or the Commissioner, to conduct audit under section 177, for any tax year, may with the prior approval of the Commissioner concerned, enter the business premises of a taxpayer, to obtain any information, require production of any record, on which the required information is stored and examine it within such premises; and such firm may if specifically delegated by the Commissioner, also exercise the powers as provided in sub-section (4).
“(1A) A special audit panel appointed under sub-section (11)of section 177, for any tax year, may, with the prior approval of the Commissioner concerned, enter the business premises of a taxpayer, to obtain any information, require production of any record, on which the required information is stored and examine it within such premises and such panel may if specifically delegated by the Commissioner, also exercise the powers as provided in subsection(4).”
(2) The Commissioner may impound any accounts or documents produced under sub-section (1) and retain them for so long as may be necessary for examination or for the purposes of prosecution.
(3) The person from whom information is required, may at his option, furnish the same electronically in any computer readable media. Where a hard copy or computer disk of information stored on a computer is not made available as required under sub-section (1), the Commissioner may require production of the computer on which the information is stored, and impound and retain the computer for as long as is necessary to copy the information required.
(4) For the purposes of this section, the Commissioner shall have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (Act V of 1908), in respect of the following matters, namely: —
(a) enforcing the attendance of any person and examining the person on oath or affirmation;
(b) compelling the production of any accounts, records, computer-stored information, or computer;
(c) receiving evidence on affidavit; or
(d) issuing commissions for the examination of witnesses.
(5) This section shall have effect notwithstanding any law or rules relating to privilege or the public interest in relation to the production of accounts, documents, or computer-stored information or the giving of information.
(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.)
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Dollar rises to historic level at Rs168.94 against PKR
KARACHI: The US dollar advanced to a historic high against the Pak Rupee (PKR) on Tuesday as exchange rate was recorded at Rs168.94 in interbank foreign exchange market.
The rupee lost 84 paisas against the dollar from previous day’s closing of Rs168.10 in the interbank foreign exchange market.
Currency experts said that foreign currency demand was seen for import and corporate payments during the day.
They said that widening of trade deficit had kept the pressure on demand side. They said import prices of international commodities and energy had witnessed substantial increase.
They said that the country required immediate support in the share of export dollars and inflows of workers’ remittances to support the local currency.
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SBP issues customers exchange rates for September 14
Karachi, September 14, 2021 – The State Bank of Pakistan (SBP) has unveiled the exchange rates for customers on Tuesday, September 14, 2021.
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Last date for return filing tax year 2021 may be extended
ISLAMABAD: The last date for filing income tax return for the tax year 2021 may be extended as an online portal of the Federal Board of Revenue (FBR) was remained disturbed last month.
The FBR system was not working for 10 days during the last month, said Shaukat Tarin at a press conference on Tuesday.
“We will talk to the FBR to extend the date of filing tax returns,” he added.
The finance minister said the government will start giving targeted subsidies from this month to the weak segments of society on essential commodities including sugar, flour and pulses.
Addressing a news conference along with Minister of State for Information and Broadcasting Farrukh Habib and Special Assistant on Food Security Jamshed Cheema, he said the targeted subsidy will be in the form of cash assistance, which will cover thirty-five to forty percent population.
The Finance Minister said the government is also focusing on bolstering the agriculture productivity. In the medium to long term, commodity warehouses, cold storages and agri malls will be established with the aim to eliminate the role of middle man and ensure that the farmers get due price of their products. He said strategic reserves of major commodities are also being built in order to ensure smooth supplies in the market.
The Finance Minister said that the prices of wheat will see decline in the coming days.
Shaukat Tarin said the government has tried its level best not to fully pass on to the masses the impact of international increase in the prices of commodities. He pointed out that sugar prices increased by forty eight percent in the world market but we only creased its price by eleven percent. Palm oil saw an increase of fifty percent but we increased the price by thirty three to thirty five percent. Similarly the prices of crude oil and wheat were not enhanced as per the international market.
The Finance Minister said the government is also giving attention to enhance the incomes of the people to enhance their purchasing power.
Shaukat Tarin said that Kamyab Pakistan Program will be launched this month in order to enable the weak segments of the society earn their livelihoods.
Shaukat Tarin said that the results our growth strategy are visible and the revenue collection is increasing. He said we are on the track to achieve five percent growth during the current fiscal year. This, he said, will also help reduce our debt to GDP ratio.
As regards the State Owned Enterprises, the Finance Minister said we have to turn around them. He said a board is being established in the privatization in order to run the State Owned Enterprises on professional lines. He said these enterprises will be privatized after turning them around.
Speaking on the occasion, Jamshed Iqbal Cheema said the prices of flour, sugar, Ghee and pulses would be reduced by December this year. He said the government is targeting on ensuring quality and affordable price of milk; and a program to this effect would be unfolded in two weeks.
The Special Assistant said we are also shifting from non-promising crops to promising crops to meet the food demand of the country.
He said there has been an increase in prices of energy, food and mettle from 34 percent to 129 percent in the world, which made an impact on the prices in Pakistan.