Author: Mrs. Anjum Shahnawaz

Pakistan reaffirms commitment to work closely with Russia

ISLAMABAD: Pakistan on Thursday reaffirmed its commitment to work closely with Russia to further strengthen cooperation between the two countries.

Prime Minister Mian Muhammad Shehbaz Sharif held a warm and cordial meeting with President of the Russian Federation Vladimir V. Putin on the sidelines of the Shanghai Cooperation Organization (SCO) Council of Heads of State in Samarkand.

READ MORE: Pakistan premier arrives Russia after two decades

The two leaders discussed bilateral ties and exchanged views on regional and international issues.

The Prime Minister thanked President Putin for Russia’s expression of solidarity and support for the people affected by the massive floods in Pakistan. The Prime Minister also shared details of the devastating impact of this climate induced calamity.

The Prime Minister expressed satisfaction at steady growth of Pakistan-Russia relations, which were marked by strong mutual trust and understanding.

The Prime Minister reaffirmed Pakistan’s commitment to work closely with Russia to further expand and strengthen cooperation between the two countries across all areas of mutual benefit including food security, trade & investment, energy, defence and security.

It was agreed to convene the next meeting of the Inter-Governmental Commission (IGC) in Islamabad at an early date. Appreciating Russia’s constructive role in Afghanistan, the Prime Minister said that both Pakistan and Russia had vital stakes in a peaceful and stable Afghanistan.

The Prime Minister said that it was essential to intensify the pace of international engagement on Afghanistan and reaffirmed Pakistan’s commitment to support all regional and international efforts to stabilize Afghanistan.

Prime Minister Muhammad Shehbaz Sharif also met President of Iran Seyed Ebrahim Raisi on the sidelines of the SCO Council of Heads of State meeting in Samarkand on Thursday.

The Prime Minister extended his gratitude to President Raisi and to the people of Iran for their solidarity and support with the Pakistani nation during the massive floods in the country.

The Prime Minister highlighted the devastating impact of the floods caused by climate change, and underscored that Pakistan with the least carbon emissions was bearing the cost of something for which it was not responsible.

He stressed the importance of tangible international action to help address the challenges that climatically vulnerable countries like Pakistan were facing.

READ MORE: Presidents of Pakistan, Iran discuss trade, economy

During the meeting, the two leaders positively evaluated the outcome of the Pakistan-Iran Joint Economic Commission and agreed to further promote bilateral relations in diverse fields.

Both sides also affirmed the desire to strengthen cooperation in economic, trade, connectivity, energy, culture and people-to-people links.

The Prime Minister underscored the need for closer bilateral engagement for boosting economic and energy cooperation, operationalizing barter trade, opening border sustenance markets, and facilitation of Pakistani Zaireen.

It was agreed that Pakistan would be sending a delegation to discuss measures for expanded cooperation in bilateral trade and energy sectors. The Prime Minister reiterated his invitation to President Raisi to visit Pakistan at the earliest convenience. President Raisi renewed his invitation to the Prime Minister to visit Iran.

September 15, 2022
FBR announces prize winners of 9th POS balloting

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday announced prize winners of 9^th balloting of invoices issued through Point of Sales (POS) installed by big retailers.

According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Asfar Imam on the invoice issued by Rehmat e Shereen.

READ MORE: FBR announces prize winners in eighth draw of POS invoices

The FBR announced winners of two second prizes of Rs500,000 each to Irum Abid on the invoice issued by PCC Express and Abdul Qadir on the invoice issued by Imtiaz Provision Store.

Similarly, the four winners of third prize amounting Rs250,000 each have been awarded to Muhammad Imtiaz, Muhammad Aman Ullah Khan, Aamir Hasib Malik and Nadeem Hassan Gohar.

The FBR conducts computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was ninth draw as it was started in January 15, 2022.

READ MORE: FBR announces prize winners of 7th draw of POS invoices

The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.

The FBR previously issued a procedure for participating in the prize scheme.

The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.

The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.

READ MORE: 101 retailers given July 10 as deadline for integration

The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.

In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.

Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.

In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.

The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.

READ MORE: Sindh integrates 56 restaurants for online tax monitoring

Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.

The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.

September 15, 2022
Total company registration increases to 176,329 in Pakistan

ISLAMABAD: Total registration of companies in Pakistan has increased to 176,329 by end of August 2022, according to official statement issued on Monday.

Securities and Exchange Commission of Pakistan (SECP) said it registered 2,362 new companies in August 2022, raising the total number of registered companies to 176,329.

“This shows an increase of 16 per cent as compared to corresponding period last year,” the SECP said.

Total capitalization (paid-up capital) with regard to the newly incorporated companies for the current month stood at Rs4.9 billion.

READ MORE: SECP’s company registration goes up to 169,919 till May 2022

SEC Pakistan said foreign investment had been reported in 70 new companies. These companies have foreign investors from China, Czech Republic, Egypt, Germany, Hong Kong, Iran, Korea South, Malaysia, Maldives, Mongolia, Morocco, the Netherlands, Nigeria, Poland, Portugal, Singapore, Somlia, Spain, Sri Lanka, Syria, Thailand, Turkey, UAE, UK, Ukraine, the US, Vietnam, and Yemen.

READ MORE: SECP, FBR integration brings 2,365 companies under tax net

In August, about 59 per cent companies were registered as private limited companies, while 38 per cent were registered as single member companies. Three per cent were registered as public unlisted companies, not for profit associations, foreign companies and limited liability partnership (LLP).

About 99.8 per cent companies were registered online, while 94 foreign users were registered from overseas.

READ MORE: RDA: SECP exempts banks from obtaining license

The real estate development and construction sector took the lead with incorporation of 418, trading with 318, information technology with 307, services with 234, tourism with 97, food and beverages with 91, ecommerce with 84, education with 78, marketing and advertisement with 69, textile with 65, engineering with 58, power generation with 44, transport with 43, corporate agricultural farming with 39, mining and quarrying with 35, chemical with 34, healthcare with 31 and 317 companies were registered in other sectors.

READ MORE: SEC Pakistan amends regulations to facilitate startups

As a result of integration of SECP with the Federal Board of Revenue (FBR) and various provincial departments, 1796 companies were registered with the FBR for generation of National Tax Number (NTN), 78 companies with Employees Old-age Benefit Institution (EOBI), 46 companies with PESSI/SESSI and 50 companies with excise and taxation department.

September 12, 2022
Pakistan implemented currency declaration decade ago: FBR

ISLAMABAD: Pakistan has implemented currency declaration for all international passengers a decade ago, the Federal Board of Revenue (FBR) clarified on Monday.

FBR, the apex tax collecting agency of Pakistan, stated that the currency declaration regime for all international passengers has been in field for more than a decade, rather than being recently introduced on account of any recent FATF review requirements.

READ MORE: Last date for filing tax return is September 30, FBR reminds

It said a misleading impression has been created in some section of the press that Pakistan has recently imposed currency declaration requirements for passengers coming into Pakistan, which is contrary to facts.

Unlike portrayed by some section of the press, the mandatory requirement for passengers coming into Pakistan and bringing currency and/or negotiable instruments was notified by the State Bank of Pakistan more than 10 years ago vide notification no. F.E.1/2012-SB dated 16th June 2012. This requirement came into force on July 01,2012.

READ MORE: Disclosure of beneficial ownership made mandatory for companies

Subsequently, in order to widen the scope of declaration to include gold jewelry, precious stones and other prohibited/ restricted goods, Pakistan Customs also introduced a comprehensive “Customs Declaration Form for Passengers” which was notified vide SRO 689(I)/2019 dated 29th June, 2019. These rules cover both the incoming and outgoing passengers.

READ MORE: KTBA highlights pharmaceutical industry’s reporting issues

These requirements for declaration are in line with international standards and the best practices adopted by most of the countries in the world. The passengers can make the declaration either manually at the Customs counter or electronically in the Customs System.

In order to increase awareness amongst the international passengers, Pakistan Customs has been collaborating with the Civil Aviation Authority, Airlines, and Immigration Authorities to improve its outreach for both departing and arriving passengers. As a result, the compliance has been steadily increasing.

READ MORE: FBR directs 81 retailers to integrate with POS system

September 12, 2022
Pakistan to review petroleum prices on September 15, 2022

ISLAMABAD: Pakistan is likely to review petroleum prices on Thursday September 15, 2022 for the next fortnight starting from September 16, 2022.

The country reviews domestic oil prices after every 15 days to adjust rise and fall of prices in the international market and changes occurred in the exchange rates.

READ MORE: New petroleum prices in Pakistan from September 01, 2022

Experts believe that Pakistan may increase the petroleum prices for the fortnight starting from September 16, 2022 because of massive decline in rupee value during past 15 days besides the expected imposition of sales tax and further increase in petroleum levy.

The government on August 31, 2022 decided to increase the prices of petroleum products effective from September 01, 2022. The decision was strongly criticized by the stakeholders because the international markets had seen fall in oil prices.

The finance division notified the new prices of petroleum products with effect from September 01, 2022.

READ MORE: Pakistan to increase petroleum prices from September 01, 2022

The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

READ MORE: New petroleum prices in Pakistan from August 16, 2022

The benchmark Brent crude is below $100 dollars. Brent crude futures were at $92.84 per barrel in New York trade on September 09, 2022.

The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

READ MORE: New petroleum prices in Pakistan from August 1, 2022

The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

Pakistani Rupee (PKR) has plunged by Rs9.43 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by Rs9.43 or 4.31 per cent to Rs228.18 to the dollar on September 09, 2022 in interbank foreign exchange market.

September 12, 2022
Last date for filing tax return is September 30, FBR reminds

ISLAMABAD: The Federal Board of Revenue (FBR) on Sunday reminded that the last date for filing income of return for tax year 2022 is September 30.

In order to ensure return filing by due date, the tax authority launched massive awareness campaign

The FBR said: “Like every year before, the FBR launched a comprehensive awareness campaign to maximize its outreach through electronic and print media, urging taxpayers both existing and new, to file Income Tax Returns on time. The last date to file returns is Sep 30, 2022.”

READ MORE: Disclosure of beneficial ownership made mandatory for companies

The FBR issued an alert about the last date stating that last date to file income tax returns will not be extended. “Last date to file income tax returns for individuals and association of persons (AOPs) is September 30, 2022,” the FBR added.

The revenue body said that income tax returns can be filed through: Tax Asaan APP and FBR website.

It further stated that tax payment is possible through: internet and mobile banking; credit card and ATMs; cash and bank account.

The FBR further urged the taxpayers to file tax returns and avail exemption from 100 per cent increased withholding tax rates.

READ MORE: KTBA highlights pharmaceutical industry’s reporting issues

The tax body highlighted mandatory income tax return filing for persons and corporate entities.

The FBR said that all resident persons registered with professional bodies, i.e. chamber of commerce, Pakistan Bar Council or Market Committee etc. are required to file income tax returns.

Association of persons and Individuals having more than Rs400,000 annual business income are also required to file their return of income on annual basis.

READ MORE: FBR directs speedy clearance of flood relief goods

“The income tax return filing is must for salaried persons if annual income exceeds Rs600,000,” the FBR added.

The revenue body said that the income tax return filing for tax year 2022 is also mandatory for persons who were charged to income tax in tax years 2020 and Tax Tear 2021.

Furthermore following persons are required to file income tax return:

— Persons having National Tax Number (NTN)

— Persons who own a motor vehicle having engine capacity more than 1,000CC

— Persons who own 500 sq. yards or more property / flat in urban areas.

READ MORE: FBR directs 81 retailers to integrate with POS system

— Owners of flat with 2,000 sq. feed covered area of 500 sq. yards or more land in FBR rating area.

— All Non for Profit Organizations (NPOs) or welfare organizations that fall under Income Tax Ordinance, 2001.

— Commercial and Industrial consumers paying more than Rs500,000 electricity bill annually.

— Resident persons required to file foreign income and assets statement.

September 11, 2022
Pakistan raises petroleum prices by 100% in one year

ISLAMABAD: Pakistan has increased prices of petroleum products by around 100 per cent during past one year, according to official data released on Friday.

According to data released by Pakistan Bureau of Statistics (PBS), the price of petrol was increased by 99 per cent to Rs236.98 per liter by week ended September 08, 2022 as compared with Rs119.25 per liter by week ended September 09, 2021.

READ MORE: New petroleum prices in Pakistan from September 01, 2022

Similarly, the price of high speed diesel (HSD) recorded a massive increase of 114 per cent to Rs248.40 per liter by week ended September 08, 2022 when compared with Rs116 per liter by week ended September 09, 2021.

The PBS issued weekly Sensitive Price Indicator (SPI) based inflation details.

The year on year trend depicts an increase of 42.70 per cent. The items have witnessed increase in prices are included: Tomatoes (144.25 per cent), Diesel (114.08 per cent), Petrol (98.73 per cent), Pulse Masoor (76.34 per cent), Cooking Oil 5 litre (67.99 per cent), Mustard Oil (66.53 per cent), LPG (64.98 per cent), Washing Soap (64.50 per cent), Electricity for Q1 (63.03 per cent), Vegetable Ghee 2.5 Kg (62.53 per cent), Pulse Gram (61.02 per cent), Onions (59.97 per cent) and Vegetable Ghee 1 Kg (58.19 per cent).

READ MORE: Pakistan’s headline inflation hits 47-year high in August 2022

While a decrease observed in the prices of Chillies Powder (43.42 per cent), Sugar (18.07 per cent) and Gur (2.08 per cent).

The SPI for the current week ended on September 08, 2022 recorded a decrease of 0.58 per cent. Decrease is observed in the prices of food items, Onions (41.99 per cent), Tomatoes (8.11 per cent), Bananas (2.51 per cent), Pulse Masoor (1.37 per cent), Vegetable Ghee 1Kg (0.55 per cent), Cooking Oil 5 litre (0.33 per cent), Mustard Oil (0.16 per cent) and Vegetable Ghee 2.5Kg & Sugar (0.11 per cent) each.

READ MORE: Pakistan’s sensitive price inflation surges by 45%

On the other hand, an increase observed in the prices of LPG (10.66 per cent), Wheat Flour (4.15 per cent), Eggs (3.96 per cent), Bread (3.27 per cent), Pulse Moong (2.74 per cent), Curd (2.72 per cent), Tea Lipton (2.50 per cent), Pulse Gram (1.65 per cent), Chicken (1.58 per cent), Milk Fresh (1.57 per cent), Fire wood (1.54 per cent) and Potatoes (1.02 per cent).

During the week, out of 51 items, prices of 26 (50.98 per cent) items increased, 09 (17.65 per cent) items decreased and 16 (31.37 per cent) items remained stable.

READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

September 9, 2022
FBR directs speedy clearance of flood relief goods

The Federal Board of Revenue (FBR) has issued directives to customs authorities, emphasizing the need for expeditious clearance of goods related to flood relief operations.
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September 9, 2022
USC to disburse ration bags worth Rs540 million to flood victims

ISLAMABAD: Utility Stores Corporation (USC) will disburse 113,700 ration bags worth Rs540 million to the flood affected people across the country.

In this regard the Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the grant in favor of the USC.

Ministry of Industries and Production presented a summary for release of funds for Utility Stores Corporation for provision of essential commodities in flood affected areas.

READ MORE: OTP requirement abolished for USC purchases

The meeting was apprised that the Utility Stores Corporation, in collaboration with provincial governments, is actively participating in relief operation for supply of essential food items in flood affected areas across Pakistan.

Due to emergency situation and based on the preliminary need assessment, 113,700 ration bags amounting to Rs. 540 million would be disbursed. Considering emergency situation, the ECC approved Supplementary/ Technical Supplementary Grant of Rs. 540 million in favour of Utility Stores Corporation (USC).

READ MORE: ECC approves Ramzan relief package worth Rs8.28 bn

Finance Mnister Miftah Ismail chaired the ECC meeting. Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, Shahid Khaqan Abbasi, MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Dr. Muhammad Jehanzeb Khan, Special Assistant to the Prime Minister on Government Effectiveness, MD USC, MD PASSCO, Federal Secretaries and senior officers attended the meeting.

Ministry of National Food Security & Research tabled a summary for allocation of PASSCO’s local and imported wheat sock among recipient agencies.

READ MORE: USC, NBP complete integration for Ehsaas Rashan

It was briefed that PASSCO serves as a strategic organization to procure wheat from Punjab, Sindh and Baluchistan to build strategic reserves and to supply wheat to recipient agencies in case of emergency.

Every year, on the request of recipient agencies, PASSCO makes allocation of wheat from its stocks. PASSCO held wheat stock of 2.499 MMT, including 1.232 MMT carry forward stocks.

In view of above, the ECC allowed to supply PASSCO’s wheat among all recipients at 50 per cent local and 50 per cent imported.

However, USC will be provided wheat at 75 per cent local and 25 per cent imported.

All recipients including USC would pay full cost of wheat (local + imported) and incidental charges to PASSCO.

READ MORE: USC automation to ease provision of targeted subsidy

Ministry of Industries and Production presented a summary on Urea Fertilizer requirement for Rabi season 2022-23. The meeting was briefed on the demand and supply situation of Urea fertilizer for the Rabi season 2022-23.

After detailed deliberation, the ECC allowed Trading Corporation of Pakistan (TCP) to initiate the process for import of 300,000 MT of Urea on G2G basis and decided the provinces to bear their subsidy share.

The ECC approved funds amounting to Rs. 3 billion to NDMA to meet its growing expenditure on account of procurement of rescue, relief and rehabilitation of the calamity stricken population across Pakistan.

NDMA briefed the meeting that in the aftermath of devastation caused by floods across the country, millions of people have suffered in terms of loss of life, property, livestock and standing crops.

NDMA was tasked by the Prime Minister to coordinate with PDMAs and to proactively undertake rescue and relief operation in the affected areas.

The ECC also approved funds requirement of Rs. 1,009,480,191/- in favour of Ministry of National Health Services, Regulation & coordination for further transfer to Government of Afghanistan through approved mechanism for running cost/salary of the staff of three Pakistani hospitals in Afghanistan.

September 8, 2022
FBR directs 81 retailers to integrate with POS system

ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday directed 81 retailers to integrate with the online system by September 10, 2022 otherwise action will be taken as per law.

The FBR issued Sales Tax General Order (STGO) No. 3 of 2023 related to Tier-1 retailers for integration with FBR’s Point of Sale (POS) system.

READ MORE: 101 retailers given July 10 as deadline for integration

The Finance Act, 2019 added sub-section (6) to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailers who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.

READ MORE: FBR issues list of 113 retailers for mandatory integration

In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 Retailers who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August, 2021) are to be dealt with as per the procedure laid down in STGO No/ 1 of 2022 issued on August 3, 2021.

READ MORE: RTO-II Karachi seals electronics shop for integration failure

Vide the instant Sales Tax General Order, a list of 101 identified Tier-1 Retailers has been placed on FBR’s web portal allowing them to integrate with FBR’s system by July 10, 2022 an the procedure of exclusion from this list of 101 identified Tier-1 Retailers shall apply as laid down in STGO 17 of 2022 dated May 13, 2022.

READ MORE: RTO-II Karachi seals Baklava Palace for integration failure

Upon filing of Sales Tax Return for the month of June, 2022 for all hereby notified Tier-1 Retailers not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.

September 8, 2022