Author: Mrs. Anjum Shahnawaz

  • Dar rejects allegations for keeping PKR overvalued

    Dar rejects allegations for keeping PKR overvalued

    ISLAMABAD: Federal Minister Ishaq Dar on Wednesday rejected allegations for injecting dollars to keep Pakistani Rupee (PKR) overvalued.

    Speaking to the media on arrival at the Finance Ministry, Federal Minister Ishaq Dar said the speculators will not be allowed to play with the local currency.

    READ MORE: PKR makes recovery against dollar for fourth straight session

    He rejected the impression that the PML (N) government in its tenure between 2013 and 2018 injected dollars in the market to keep the rupee overvalued.

    Dar said we rather took the foreign exchange reserves to record level of twenty three billion dollars. He said we believe in market economy, recalling it was the PML-N government which introduced market based exchange rate. Ishaq Dar said the country is facing difficult challenges but these will be tackled as was done in the past.

    READ MORE: PKR strengthens sharply to dollar during last three sessions

    Dar said stabilizing local currency and reducing inflation and interest rates are priorities of the government.  He said we do not believe in mere verbal claims rather history is testimony of our economic performance.

    Ishaq Dar expressed satisfaction over the appreciation of rupee over the last two days saying this has reduced our loans.

    READ MORE: Dollar tumbles to PKR as market welcomes Dar nomination

    The Federal Minister said the country is currently faced with worst economic crisis because of mismanagement of previous government of PTI. He said it was because of the efforts of former Finance Minister Miftah Ismail that the country averted default. He however said that the mess left behind the PTI government could not be cleared in six months.

    READ MORE: PKR ends 15-day losing streak; recovers against dollar

    Ishaq Dar regretted that the PTI government during its last days in office violated the international agreements to take political mileage.

    As regards the case against him, Ishaq Dar said it is a fake. He said he has been a consistent tax payer over the last thirty four years and that he never delayed his tax returns. He said the previous government also cancelled his passport and it was the current coalition government which issued him a passport.

  • Customs examiner penalized for submitting misleading lab reports

    Customs examiner penalized for submitting misleading lab reports

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed major penalty upon a Customs chemical examiner for submitting wrong / misleading laboratory reports.

    According to details disciplinary proceedings under the Civil Servants (Efficiency & Discipline) Rules, 2020 were initiated against Aftab Ahmad, Assistant Chemical Examiner (BS-17), while posted at Collectorate of Customs, Port Muhammad Bin Qasim, Karachi on July 13, 2021.

    READ MORE: FBR allows refund adjustment to facilitate return filing

    Engr. Habib Ahmed the then Additional Collector (PCS/BS-19), Collectorate of Customs (Exports), Karachi was appointed as Inquiry Officer to conduct inquiry on account of various omission and commission committed by the accused officer constituting “Inefficiency” and “Misconduct”.

    The inquiry officer submitted in the report on April 09, 2022 according to which the charges of “Inefficiency” and “Misconduct” were established against the accused officer.

    On the basis of inquiry report, a show cause notice was issued on May 28, 2022 to Aftab Ahmad, Assistant Chemical Examiner (BS-17), Collectorate of Customs Appraisement (West), Karachi.

    READ MORE: FPCCI seeks statutory time for return filing after error removals

    He submitted reply to the Show Cause Notice, which was received in the Board on June 29, 2022, wherein he denied all the allegations/charges and requested that the Show Cause Notice is illegal and requires to be withdrawn.

    He also requested personal hearing enabling him to explain his case in person as well.

    In order to meet the ends of justice, opportunity of personal hearing was granted to the accused and the Authority appointed Member (Admn/HR) as Hearing Officer.

    On August 22, 2022, the accused officer appeared before the Hearing Officer. During the course of personal hearing, the submissions made by the accused officer were found without evidence and merits for submitting wrong/misleading laboratory test reports.

    READ MORE: FBR advised to extend tax return filing date for three months

    Moreover, the Hearing Officer had observed that the accused officer had nothing new to say in his defense. Accordingly, the case was submitted to the Authority i.e. Secretary Revenue Division/Chairman, FBR for decision.

    The Authority i.e. Secretary Revenue Division/Chairman, FBR, after having carefully considered the record of the case, the Inquiry Report, reply to the Show Cause Notice and submission made by the accused during the personal hearing before the Hearing Officer, observed that charges of “Inefficiency” and “Misconduct” under Rule 3(a) & (b) of Civil Servants (Efficiency & Discipline) Rules, 2020 stand established against the accused officer.

    READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline

    The Authority, therefore, imposed major penalty of “Reduction to a Lower Post as Deputy Assistant Chemical Examiner (BS-16)” for a period of three (3) years”, upon Aftab Ahmad, Assistant Chemical Examiner (BS-17), under Rule 4(3)(b) of the Civil Servants (Efficiency & Discipline) Rules, 2020.

  • PTBA identifies ambiguity in property value declaration

    PTBA identifies ambiguity in property value declaration

    Pakistan Tax Bar Association (PTBA) on Tuesday identified ambiguity in declaring of immovable property in income tax return filing.

    PTBA President Rana Munir Hussain in a letter to the chairman of Federal Board of Revenue (FBR) stated that the apex tax bar had received several representations from the members of different affiliated tax bars across the country; one of the reasons of delay in filing of Income Tax Return for the Tax Year 2022 in is an ambiguity in declaration of value of the properties purchased and sold during the year.

    READ MORE: FBR allows refund adjustment to facilitate return filing

    The said burning issues need the consideration of the FBR in the light of prevailing circumstances.

    In this respect tax bar summarized the following questions: –

    Question No. 1

    A tax payer sold his immovable property in consideration of Rs.6,000,000/- through a written agreement to sell during the tax year 2022 and received the said amount in shape of pay order as provided u/s 75A of the Income Tax Ordinance 2001.

    READ MORE: FPCCI seeks statutory time for return filing after error removals

    Whereas at the time of execution of sale deed the parties were compelled to mention the sale price at Rs.7,500,000/- as per rate notified by the D.C being minimum price.

    The PTBA urged the FBR to clarify that can the tax payer (seller) incorporate the sale proceed at Rs.7,500,000/- as appearing on the registered sale deed in his wealth reconciliation statement or he will have to record the actual consideration of Rs.6,000,000/- received from the buyer?

    Question No. 2

    A tax payer sold his immovable property through agreement to sell in consideration of Rs.40,000,000/- and received the said amount in shape of pay order as provided u/s 75A of the Ordinance.

    READ MORE: FBR advised to extend tax return filing date for three months

    Sale deed was executed at Rs.45,000,000/- being the minimum price notified by D.C.

    On the other hand, the seller as well as the buyer paid the tax u/s 236C and 235K at the value fixed by FBR i.e. Rs.6,500,000/-.

    Clarification is sought.

    Whether the seller can record in his wealth statement the amount at Rs.65,000,000/- whereas in actual, he received Rs.40,000,000/-.

    What price of the asset has to declared by the buyer in his wealth statement?

    READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline

    The actual price paid at Rs.40,000,000/- ; OR

    The price fixed by D.C. at Rs.45,000,000/-; OR

    The price fixed by FBR at Rs.65,000,000/-.

    In the light of the submissions made above it is requested to issue a clarification as early as possible. Moreover, timely decision taking in this regard would not only be appreciated by the taxpayers/legal fraternity, who are working very hard day and night by playing their part towards the legal responsibility for contributing towards national exchequer but also in collection of taxes at the appropriate time.

  • FBR allows refund adjustment to facilitate return filing

    FBR allows refund adjustment to facilitate return filing

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday allowed refund adjustment to facilitate taxpayers in filing returns for tax year 2022.

    The FBR said it had received a number of representations from various Tax bars, businesses and other stakeholders on the issue of non-availability of refund adjustment tab in the return forms available in the Iris, an online portal of FBR for return filing.

    READ MORE: FPCCI seeks statutory time for return filing after error removals

    In order to ensure smooth filing of returns and to improve ease of doing business and decrease cost of compliance of taxpayers, the revenue board has enabled refund adjustment tab in the return forms.

    “This facility will enable taxpayers to adjust their pending refund claims against admitted liability of Tax Year 2022 at the time of filing of tax returns who had filed applications to claim their outstanding refunds of previous years,” the FBR said.

    READ MORE: FBR advised to extend tax return filing date for three months

    In this regard it is informed that refunds applications filed up to September 09, 2022 are eligible for adjustment of refunds.

    “This facility is available to all taxpayers who have not claimed excess adjustment against previous years’ refunds,” the FBR added.

    Previously, the Pakistan Tax Bar Association (PTBA) and affiliated tax bars in the country strongly criticized the FBR for denying the right of adjusting past years refunds against current liability.

    READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline

    The PTBA on September 24, 2022 approached the FBR chairman to resolve the issue and the apex tax bar also suggested measures to facilitate taxpayers in this regard.

    It said that adjustment of earlier refunds due, in the cases against admitted tax liability for Tax Year 2022 is a statutory right of a taxpayer, which has always been acknowledged, even by the system of IRIS from years to years.

    Tax Year 2022 is the first Tax Year where for the key to claim adjustment of refund in the return form available on portal, has been blocked without assigning any plausible legal justification.

    The sole stance of the officials of FBR in this respect is that various tax payers claim refunds in their returns which is not admissible.

    READ MORE: Penalties for failure to file return tax year 2022 within due date

    “We wish to bring on record that PTBA would never support any such illegal action of any person and at the same time it is submitted that the responsibility to verify the authenticity of refund was on the field formations of the FBR who never took any pain to verify the claim of refunds at their own,” the apex tax bar said.

    On the other side facility to adjust refund against admitted tax liability for Tax Year 2022 has been taken away due to which the taxpayers have been forced to pay tax in cash, no matter how much refund is due to them.

  • Miftah resigns as finance minister after taking tough decisions

    Miftah resigns as finance minister after taking tough decisions

    Dr. Miftah Ismail has resigned the post of the finance minister on Sunday. Ismail has taken many tough decisions for the country’s economy during his stay since April 2022.

    “In a meeting with Mian Nawaz Sharif and Prime Minister Shehbaz Sharif today [Sunday September 25, 2022], I have verbally resigned as Finance Minister. I will tender a formal resignation upon reaching Pakistan. It’s been an honour to serve twice as Finance Minister,” Miftah Ismail said in a Tweet.

    READ MORE: Pakistan’s forex reserves slip to $14.07 billion

    Miftah Ismail assumed the charge as finance minister as soon the new coalition government led by PML (N) came into the power after the former Prime Minister Imran Khan of Pakistan Tehreek I Insaaf (PTI) was ousted through a vote of confidence.

    During this period Pakistan had seen severe economic crisis, especially the balance of payment, local currency depreciation and negotiations with the International Monetary Fund (IMF).

    READ MORE: ECC approves clearance of banned items landed till August 18, 2022

    The biggest achievement of Miftah Ismail was successful negotiations with the IMF. Although, the government had taken very tough decisions, especially removal of subsidies on petroleum products and energy to achieve the IMF bailout package.

    READ MORE: USC to disburse ration bags worth Rs540 million to flood victims

    It is learnt that senator Ishaq Dar is assuming the charge as finance minister. Dar was living abroad for the last many years. However, the present government is believing that Dar was the best choice to face challenges that the country was facing.

    Ahsan Iqbal, Federal Minister Planning and Development has acknowledged the services of Miftah Ismail and said in a Tweet: “You served under most challenging circumstances. You saved default at the cost of personal reputation. Your services will be remembered.”

    READ MORE: Pakistan State Oil gets Rs30 billion to avoid default

  • Pakistan assures extending tax incentives to Qatari businessmen

    Pakistan assures extending tax incentives to Qatari businessmen

    Pakistan has reaffirmed its commitment to provide tax incentives and collaborative support to Qatari businessmen looking to invest in the country.

    (more…)
  • Dispensation of swift justice priority of Supreme Court of Pakistan

    Dispensation of swift justice priority of Supreme Court of Pakistan

    Pakistan needs a speedy justice system in order to win the confidence of people and take quantum leap to reduce the pendency of cases. The Supreme Court of Pakistan (SCP) has taken various measures to improve the justice system in the country and encourage all the lower and higher courts to enhance efficiency in their workings.

    In order to recognize the efficiency, the SCP distributed awards among model court judges in 2019. Shabana Waheed, Additional District Judge (ADJ) Karachi Central was among the judges, who received the model court award.

    ADJ Shabana Waheed is taking lead in providing speedy justice without hurting the actual essence of the justice system. She is known to resolve disputes in shorter span of time even convincing parties to resolve with the mutual consent to settle out of court.

    In a recent case, ADJ Shabana Waheed helped the parties to mutually resolve the dispute of an immovable property. It was case of real brother and a sister. The sister was claiming that the immovable property was in the name of her mother and the distribution of shares should be within heirs of the mother. On the other hand the brother claimed it was benami property as their mother was a housewife; therefore, the owner of the property would be he himself or his father (late), as the property was purchased after the death of the father.

    During course of discussion, the sister disclosed that her father had purchased another immovable property during his lifetime and the instant disputed property was purchased from the funds received through sale of the previous property that was also sold after the death of the father. The disclosure of the sister cleared the things.

    The brother offered to surrender his benami right if his sister agreed to distribute share amongst all heirs of their father, including step sisters and brothers. The sister also showed positive gesture and agreed to the proposal.

    The role of the ADJ is that, though it was not official court proceeding, she resolved the issue while convincing both the sister and the brother to abide the Sharia Law and protect the rights. She also referred many verses of the Holy Quran to shed light on the importance of rights.

    This quick resolution not only bring closer both brother and sister, who were contesting this case for the past many years, but it also resulted harmony in the society just because of ADJ Shabana Waheed.

    Hon’ble Chief Justice of Pakistan Mr. Justice Umar Ata Bandial at the opening ceremony of New Judicial Year 2022-2023 said that dispensation of swift and economic justice being a priority, the Federal Judicial Academy and the Law and Justice Commission of Pakistan (LJCP), under the guidance of this Court, are resorting to alternative dispute resolution (ADR), which in time shall reduce the pendency of cases in all tiers of courts by around 40 percent, in the next three years.

    The Opening ceremony of New Judicial Year 2022-2023 was held today on 12th September 2022 in Court Room No.1 of Supreme Court of Pakistan, Islamabad. The ceremony was presided over by the Hon’ble Chief Justice of Pakistan Mr. Justice Umar Ata Bandial and was attended by the Hon’ble Judges, law officers and members of the legal fraternity.

    The ceremony was held on the eve of the start of the New Judicial Year, to take stock of performance of the past year and to formulate future policies accordingly not only for advancement of justice but also for protection of the fundamental rights of the people.

    The Hon’ble Chief Justice graced the occasion with the key note address. His lordship informed that during the period from 2nd Feb, 2022 till 9th Sep, 2022 the court has decided 14,943 cases, minimizing the pending cases from 54,134 to 50, 265, accordingly.

    The Hon’ble Chief Justice of Pakistan concluded with a solemn pledge regarding the court’s commitment to defend the Constitution in its entirety.

  • FBR promotes 35 IRS officers to BS-18

    FBR promotes 35 IRS officers to BS-18

    The Federal Board of Revenue (FBR) announced on Friday the promotion of 35 officers from the Inland Revenue Service (IRS) from BS-17 to BS-18 on a regular basis, effective immediately.

    (more…)
  • ECC approves clearance of banned items landed till August 18, 2022

    ECC approves clearance of banned items landed till August 18, 2022

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the customs clearance of banned items, which landed till August 18, 2022.

    Federal Minister for Finance and Revenue Miftah Ismail virtually presided over the meeting of the ECC. Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmmod, Federal Minister for National Health Services, Regulations and Coordination Abdul Qadir Patel, MNA/ex-PM Shahid Khaqan Abbasi, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Coordinator to the PM on Economy Bilal Azhar Kayani, Chairman NDMA, Chairman FBR, Federal Secretaries and senior officers attended the meeting.

    READ MORE: USC to disburse ration bags worth Rs540 million to flood victims

    The ECC considered a summary of Ministry of Commerce on clearance of stuck up consignments in light of office memorandum dated 22 July, 2022, 19 August, 2022 and 23 August, 2022 issued by Ministry of Commerce.

    The ECC approved the proposal and directed that the consignments of previously banned items that landed in Pakistan till August 18, 2022 may be released at the rate of surcharge.

    Ministry of National Health Services, Regulations and Coordination presented a summary for exemption of Active Pharmaceutical Ingredients (APIs) from Custom Duty and Additional Custom Duty.

    READ MORE: Pakistan State Oil gets Rs30 billion to avoid default

    The ECC after discussion directed Ministry of National Health Services, Regulations and Coordination to withdraw the summary and submit a fresh summary to rationalize price of paracetamol to ensure its availability.

    The summary presented by Ministry of National Food Security and Research regarding import of Wheat through Gwadar sea port was deferred by ECC.

    National Disaster Management Authority (NDMA) presented a summary for allocation of funds for procurement and logistics of relief items for flood affectees and apprised about devastation caused by the recent floods in Pakistan. In order to provide immediate relief to the flood affectees, NDMA started procurement on emergency basis costing Rs. 2.4 billion.

    READ MORE: Pakistan decides to lift ban on imported goods

    Due to colossal damages, the already procured items are not sufficient viz-a-viz relief requirement in the flood affected areas.

    Therefore, NDMA placed orders for procurement of more items at cumulative cost of Rs. 7.113 billion, which are being procured in emergency to provide relief to affectees. Previously, NDMA was allocated Rs. 8 billion for procurement and logistics cost of relief items to the flood affectees.

    READ MORE: 15% surcharge imposed for clearance of banned items

    The amount was insufficient as the cost of only procurement has surpassed Rs. 9.5 billion. Besides procurement, NDMA is also undertaking logistics of all relief goods and materials provided by friendly countries.

    Foregoing in view, the ECC approved allocation of Rs. 10 billion to National Disaster Management Authority (NDMA) with direction to the Finance Division to immediately release Rs. 5 billion to NDMA.

  • Customs appraising officer awarded ‘dismissal from service’

    Customs appraising officer awarded ‘dismissal from service’

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday awarded major penalty of ‘dismissal from service’ upon an appraising officer of Pakistan Customs on the charges of misconduct.

    According to an official notice, the FBR stated disciplinary proceedings were initiated against Syed Imtiaz Hussain Shah, Appraising Officer (BS-16), Directorate of Post Clearance Audit (North), Islamabad by the Authority/Member (Admn/HR) by issuing order under Rule-7 read with Rule-6 of the Civil Servants (Efficiency & Discipline) Rules, 2020 dated July 20, 2022 on account of acts of omission and commission constituting “Misconduct” under Rule- 3(b) read with Rule-2(1)(K) of the Civil Servants (E&D), Rules, 2020.

    READ MORE: Outbound passengers to declare currency above $5,000

    A Show Cause Notice was served upon Syed Imtiaz Hussain Shah, Appraising Officer (BS-16). In response to the Show Cause Notice, the accused submitted defence reply to the Authority on August 16, 2022 along with the request for personal hearing.

    The Member (Admn/HR) / Authority afforded an opportunity of personal hearing to the accused on September 08, 2022.

    READ MORE: Dental practitioners directed to get sales tax registration

    After having gone through the case record including reply to Show Cause Notice, verbal submissions made by the accused during the personal hearing and other relevant record, the Member (Admn/HR) being Authority in this case, is of the considered opinion that the charges of “Misconduct” stand established against the accused.

    READ MORE: Tax rates on profit from bank deposits during year 2022/2023

    Therefore, the Authority Member (Admn/HR) has decided to impose a major penalty of “Dismissal from Service” upon Syed Imtiaz Hussain Shah, Appraising Officer, Directorate of Post Clearance Audit (North), Islamabad under Rule- 4(3)(e) of the Civil Servants (E&D) Rules, 2020.

    The officer will have a right to appeal against this Order to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 within a period of 30 days from the date of communication of this Notification.

    READ MORE: Up to 70% income tax imposed on dividends for year 2022-2023