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Author: Mrs. Anjum Shahnawaz

  • ECC approves raising petroleum levy to Rs50 per liter on RON 95

    ECC approves raising petroleum levy to Rs50 per liter on RON 95

    ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Friday approved increasing petroleum levy to Rs50 per liter on RON 95.

    Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the ECC at Finance Division.

    READ MORE: Petroleum sales decrease by 22% in four months of 2022-2023

    Federal Board of Revenue (FBR) presented a summary on increase in rate of Sales Tax on HOBC. It was conveyed that the rates of Sales Tax on POL products were reduced to zero from February 01, 2022, that put pressure on FBR’s efforts to achieve its revenue targets.

    Therefore, the ECC after deliberation allowed to increase petroleum levy from Rs 30 up to Rs. 50/Liter on RON 95 and above with effect from November 16, 2022, which is a luxury good being consumed by wealthy consumers in expensive vehicles.

    READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    Federal Minister of Planning, Development and Special Initiatives Ahsan Iqbal, Federal Minister for Power Khurram Dastgir Khan, Shahid Khaqan Abbasi MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Federal Secretaries, Chairman FBR and other senior officers attended the meeting.

    READ MORE: OGDCL announces huge oil discovery at Attock

    Ministry of energy (Petroleum Division) submitted a summary on High Speed Diesel/ Gas oil premium and informed that due to difference of premium on import of HSD for importing OMCs and PSO, there is an unsustainable position for importing OMCs and smooth supply of HSD in the country. In order to ensure sustained supply/import security, the ECC after detailed discussion allowed premium on HSD subject to maximum capping at US$ 15/BBL for importing OMCs other than PSO for the months of November and December, 2022.

    The ECC also approved Technical Supplementary Grants of Rs. 5 billion for conduct of 7th population census.

    READ MORE: Electricity withholding tax not applicable on ATL domestic consumers

  • Pakistan budget deficit widens by 43% in first quarter of 2022-2023

    Pakistan budget deficit widens by 43% in first quarter of 2022-2023

    ISLAMABAD: Pakistan budget deficit has widened by 43 per cent in the first quarter (July – September) of current fiscal year 2022-2023, according to official data released by the ministry of finance on Friday.

    The budget deficit of the country was 1 per cent of the GDP during the first quarter of the current fiscal year as compared with the deficit of 0.7 per cent in the corresponding quarter of the preceding fiscal year.

    READ MORE: Pakistan FX reserves rise to $14.69 billion after ADB transfer

    According to data the total revenue increased to Rs2.02 trillion during the quarter under review as compared with Rs1.81 trillion in the same quarter of the last year.

    The tax revenue rose to Rs1.78 trillion during July – September of the current fiscal year as compared with Rs1.53 trillion in the same period of the last year.

    READ MORE: Pakistan’s import restrictions help narrowing trade deficit by 27%

    Non-tax revenue however fell to Rs235 billion during the first quarter of the current fiscal year when compared with Rs276 billion in the same period of the last fiscal year.

    During the period under review expenditures of the country rose significantly to Rs2.83 trillion as compared with Rs2.25 trillion in the corresponding period of the last fiscal year.

    Out of total expenditures, the current expenditures grew sharply to Rs2.54 trillion during first quarter of the current fiscal year as compared with Rs1.97 trillion in the same quarter of the last fiscal year. The mark-up payment during the quarter under review also surged to Rs954 billion when compared with Rs623 billion in the corresponding quarter of the last year.

    READ MORE: Threshold of letter of credit payment increased to $100,000

    Defence spending increased to Rs313 billion during the first quarter of the current fiscal year as compared with Rs262 billion in the same period of the last fiscal year.

    The present government spent an amount of Rs220 billion on development projects during the quarter under review, which fell from Rs265 billion in the corresponding quarter of the last year.

    READ MORE: Headline inflation surges by 26.6% in October 2022

    Overall budget deficit recorded at Rs809 billion during the first quarter of fiscal year 2022-2023 when compared with the deficit of Rs438 billion in the same quarter of the last fiscal year.

    The size of GDP has been recorded at Rs78.197 trillion in July – September of the current fiscal year as compared with Rs66.95 trillion in the same period of the last fiscal year.

  • Customs Enforcement announces auction of vehicles on Nov 09, 2022

    Customs Enforcement announces auction of vehicles on Nov 09, 2022

    Collectorate of Customs (Enforcement) Peshawar has announced auction of motor vehicles to be held on November 09, 2022 at various state warehouses of the Collectorate.

    Following is the list of vehicles to be presented for the auction at state warehouse godown, Peshawar:

    01. Mercedes Benz (Bullet Proof), Model 1982, Chassis No. WDB-12603312037551

    02. Toyota Fielder “X” Car, Model 2002 (As per Website), Chassis No. NZE124-0018888

    READ MORE: FBR auctions confiscated immovable properties on Nov 15, 2022

    04. Toyota Corolla Car, Model 1985 (As per Website), Chassis No. EE80-0060788

    05. Toyota Corolla Car, Model 1988 (As per Website), Chassis No. CE90-0023057

    List of vehicles to be presented for the auction at state warehouse, Mardan:

    01. Toyota State Car, Model 1990 ( As per Website), Chassis No. CE96-0106153

    02. Toyota Estate Car, Model 1997 (As per Website), Chassis No. CE100-0073091

    03. Toyota Corolla Car, Model 1990 (As per Website), Chassis No. CE90-0050358

    READ MORE: FBR issues circular to relax income tax return filing deadline

    04. Toyota Double Cabin, Model 2002 (As per Website), Chassis No. MR033-UNE907004986

    05. Toyota Fielder Car, Model 2004 (As per Website), Chassis No. NZE121-0327891

    06. Toyota Fielder “X” Car, Model 2003 (As per Website), Chassis No. NZE121-0268084

    List of vehicles to be presented for the auction at state warehouse, Nowshera:

    01. Toyota Fielder “X” Car, Model 2004 (As per Website), Chassis No. NZE121-0318355

    List of vehicles to be presented for auction at state warehouse godown, parked at Landikotal Colony:

    01. Toyota State Car, Model 1988 (As per Website), Chassis No. CE90-0023670

    READ MORE: Withholding tax rates on immovable property transactions during 2022-2023

    02. Toyota Corolla Car, Model 1987 (As per Website), Chassis No. EE90-5007972

    03. Toyota Pick Up, Model 1991 (As per Website), Chassis No. LN65-1190463

    04. Toyota Towance, Model 1992 (As per Website), Chassis No. CR21-0170379

    05. Toyota State Car, Model 1993 (As per Website), Chassis No. CE109-0016885

    06. Toyota Corolla “G” Car, Model 2000 (As per Website), Chassis No. NZE121-0004457

    07. Toyota Corolla Car, Model 1992 (As per Website), Chassis No. CE106-0018812

    08. Toyota Towance, Model 1984 (As per Website), Chassis No. CR21-0007875

    READ MORE: Tax rates on usage of phone, internet applicable during 2022-2023

  • Pakistan’s import restrictions help narrowing trade deficit by 27%

    Pakistan’s import restrictions help narrowing trade deficit by 27%

    ISLAMABAD: Import restrictions imposed by Pakistan resulted in massive 27 per cent contractions in trade deficit during first four months (July – October) 2022/2023, according to official data released on Wednesday.

    The trade deficit narrowed to $11.47 billion during first four months of the current fiscal year as compared with the deficit of $15.62 billion in the corresponding months of the last fiscal year, Pakistan Bureau of Statistics (PBS) said.

    READ MORE: Pakistan import bill falls by 12.72% in 1QFY23

    The trade deficit contraction is largely sharp decrease in import bill of the country during the period under review. Import payment of the country were at $21.02 billion during July – October 2022/2023 as compared with $25.08 billion in the same period of the last fiscal year.

    The fall in import bill may be attributed to restrictions imposed by the government regarding opening of letter of credit. Recently, Finance Minister Ishaq Dar had announced to increase the threshold payment for LCs from $50,000 to $100,000. Industry sources said that due to scarcity of dollars in the market, most of the banks were not opening LCs for import payments.

    READ MORE: Pakistan trade deficit narrows by 17% in 2MFY23

    Exports of the country, however, grew with a small margin during the period. The exports recorded increase to $9.55 billion during first four months of the current fiscal year as compared with $9.46 billion in the same months of the last fiscal year.

    The trade deficit recorded a contraction of 42 per cent in the month of October 2022 when compared with same month of the last year. The trade deficit fell to $2.26 billion in October 2022 when compared with the deficit of $3.9 billion in the same month of the last year.

    READ MORE: Pakistan’s trade deficit narrows by 18% in July 2022

    The import bill plummeted by 27 per cent to $4.63 billion in the month of October 2022 when compared with $6.37 billion in the same month of the last year.

    On the other hand, exports also fell by 3.77 per cent to $2.37 billion in the month under review as compared with $2.46 billion in the corresponding month of the last year.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

  • FBR auctions confiscated immovable properties on Nov 15, 2022

    FBR auctions confiscated immovable properties on Nov 15, 2022

    Federal Board of Revenue (FBR) has announced to auction immovable properties that are confiscated under Section 138(2) of Income Tax Ordinance, 2001.

    The tax collecting wing of the FBR, Regional Tax Office (RTO), Gujranwala to auction the said properties on November 15, 2022.

    READ MORE: FBR issues circular to relax income tax return filing deadline

    In a notice, the RTO said that the following properties have been confiscated by the FBR under Section 138(2) of the Income Tax Ordinance, 2001 and under Rules 158 to 173 of the Income Tax Rules, 2002:

    01. Plot No. 33-B, SIE-II, Gujranwala (2 kanal), Ramzan Steel Industries.

    02. Plot No. 35-B, SIE-II, Gujranwala (2 kanal), Ramzan Steel Industries.

    03. House No. A2-333, WECHS (Wapda Town), Gujranwala (10 Marla).

    Terms and conditions for the auctions are:

    READ MORE: Withholding tax rates on immovable property transactions during 2022-2023

    01. All interested persons are abide by provisions as envisaged under section 138(2) of the Income Tax Ordinance, 2001 and Rules 158 to 173 of the Income Tax Rules, 2002.

    02. All interested persons to participate in the auction are bound to deposit a demand draft of Rs1.25 million in favor of the Commissioner Inland Revenue, Withholding Tax Zone, RTO, Gujranwala (Refundable), in case otherwise, the person will be prohibited.

    READ MORE: Tax rates on usage of phone, internet applicable during 2022-2023

    03. The successful candidate will bound to deposit the 25 per cent of bids amount at the spot and remaining amount will have to pay within 7 days.

    04. The participant in bid, compulsory to obtain NOC from respective authority in respect of these properties.

    READ MORE: Electricity withholding tax not applicable on ATL domestic consumers

    05. In case of non-completion process of bid, same will remain continue till the sale of properties.

    06. The commissioner Inland Revenue, Withholding Tax, Zone, RTO Gujranwala is fully competent to reject the auction to change the date of auction.

  • Dollar gains 78 paisas to end PKR 221.43 in interbank

    Dollar gains 78 paisas to end PKR 221.43 in interbank

    KARACHI: The US dollar gained 78 paisas against the Pakistani Rupee (PKR) on Wednesday to end at PKR 221.43 in the interbank foreign exchange market.

    Currency experts said that mounting political uncertainty put pressure on the local currency.

    READ MORE: Rupee gains 24 paisas to end PKR 220.65 against US dollar

    The exchange rate recorded a fall of 78 paisas in rupee value to end at PKR 221.43 from previous day’s closing of PKR 220.65 in the interbank foreign exchange market.

    During the last week the rupee witnessed massive deterioration against the dollar after the PTI chief announced the protest rally.

    READ MORE: Rupee rebounds after Dar holds meetings with banks, exchange companies

    PTI Chief Imran Khan was removed as prime minister through a vote of no confidence by the allied political parties in April this year. Imran Khan claimed that his government was toppled by a conspiracy.

    Prior to the announcement of the long march, the rupee witnessed recovery against the greenback due to removal of Pakistan name from the grey list of the Financial Action Task Force (FATF).

    READ MORE: Rupee crashes to dollar as PTI long march starts

    Further, the sentiments were also improved due to commitment of Asian Development Bank (ADB) to finance the country. The ADB approved a financing of $1.5 billion to the country. Currency experts said that the approval of loan program by the ADB helped the rupee to make gain.

    Interestingly, the amount of $1.5 billion was received last night by the State Bank of Pakistan (SBP). However, the fund transfer also failed to support the local currency.

    READ MORE: Dollar climbs to PKR 221.50 on rising political tension

  • Dogecoin to PKR, USD on November 02, 2022

    Dogecoin to PKR, USD on November 02, 2022

    KARACHI: The exchange rate of Dogecoin (DOGE) in Pakistani Rupee (PKR) and US Dollar (USD) on November 02, 2022.

    (more…)
  • FBR issues circular to relax income tax return filing deadline

    FBR issues circular to relax income tax return filing deadline

    ISLAMABAD: Federal Board of Revenue (FBR) has issued a circular to relax the return filing deadline up to November 30, 2022.

    The FBR issued Circular No. 17 of 2022 to extend the last date for filing income tax returns for tax year 2022 up to November 30, 2022 from October 31, 2022.

    It is second date extension for return filing for tax year 2022 granted by the FBR. Previously, the revenue body issued Circular No. 16 2022 last month to grant extension in date for filing income tax return to October 31, 2022 from September 30, 2022.

    READ MORE: PTBA seeks clear 90 days for return filing after making portal error free

    The latest date extension has been granted in view of current flood situation in the country and requests from various trade bodies and tax bars.

    With the fresh date extension, taxpayers including salaried persons, business individuals, association of persons (AOPs) and companies other than having account year July to June would able to file the return of income.

    The corporate entities having financial year between July 01 to June 30 are required to file their income tax returns by December 31 every year.

    The FBR through SRO 978(I)/2022 dated June 30, 2022 issued income tax return form for tax year 2022 giving statutory time to taxpayers for making compliance in filing of return.

    READ MORE: KCCI demands one month date extension for return filing

    Section 14 of Income Tax Ordinance, 2001, highlighted the categories of taxpayers, who are required to file their annual return of income and wealth statement.

    According to Income Tax Ordinance, 2001, following class of taxpayers are required to file return of income:

    — every company

    — every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year

    — any non-profit organization as defined in clause (36) of section 2;

    — every person whose income for the year is subject to final taxation under any provision of this Ordinance

    Any person not covered by above clauses are also required to file return of income who,—

    (i) has been charged to tax in respect of any of the two preceding tax years;

    (ii) claims a loss carried forward under this Ordinance for a tax year;

    READ MORE: Calculating property valuation uphill task in completing tax return: Rehan Jafri

    (iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    (iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

    (v) owns a flat having covered area of two thousand square feet or more located in a rating area;

    (vi) owns a motor vehicle having engine capacity above 1000 CC;

    (vii) has obtained National Tax Number; or

    (viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;

    (ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; or

    (x) is a resident person being an individual required to file foreign income and assets statement under section 116A.

    The FBR said that filing of income tax return is also mandatory for persons or classes of persons notified by the Board with the approval of the Minister in-charge.

    READ MORE: Withholding tax rates on immovable property transactions during 2022-2023

    It further said that return of income is also mandatory for every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.

  • Headline inflation surges by 26.6% in October 2022

    Headline inflation surges by 26.6% in October 2022

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) registered an increase of 26.6 per cent in the month of October 2022, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday.

    The details showed that CPI inflation general increased to 26.6 per cent on a year-on-year basis in October 2022 as compared to an increase of 23.2 per cent in the previous month and 9.2 per cent in October 2021. On a month-on-month basis, it increased to 4.7 per cent in October 2022 as compared to a decrease of 1.2 per cent in the previous month and an increase of 1.9 per cent in October 2021.

    READ MORE: Pakistan’s headline inflation rises 23.2% in September 2022

    CPI inflation Urban, increased to 24.6 per cent on year-on-year basis in October 2022 as compared to an increase of 21.2 per cent in the previous month and 9.6 per cent in October 2021. On month-on-month basis, it increased to 4.5 per cent in October 2022 as compared to a decrease of 2.1 per cent in the previous month and an increase of 1.7 per cent in October 2021.

    CPI inflation Rural, increased to 29.5 per cent on year-on-year basis in October 2022 as compared to an increase of 26.1 per cent in the previous month and 8.7 per cent in October 2021. On month-on-month basis, it increased to 5.0 per cent in October 2022 as compared to an increase of 0.2 per cent in the previous month and an increase of 2.2 per cent in October 2021.

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

    Sensitive Price Indicator (SPI) inflation on YoY increased to 24.0 per cent in October 2022 as compared to an increase of 28.6 per cent a month earlier and an increase of 15.3 per cent in October 2021. On MoM basis, it decreased by 1.5 per cent in October 2022 as compared to a decrease of 1.4 per cent a month earlier and an increase of 2.1 per cent in October 2021.

    READ MORE: Pakistan inflation hits 14-year high at 25% in July

    Wholesale Price Index (WPI) inflation on YoY basis increased to 32.6 per cent in October 2022 as compared to an increase of 38.9 per cent a month earlier and an increase of 21.2 per cent in October 2021. On MoM basis, it decreased by 0.5 per cent in October 2022 as compared to an increase of 1.4 per cent a month earlier and an increase of 4.2 per cent in corresponding month i.e. October 2021.

    READ MORE: Pakistan inflation crosses 33% on high petroleum prices

  • Threshold of letter of credit payment increased to $100,000

    Threshold of letter of credit payment increased to $100,000

    ISLAMABAD: The government has increased payment threshold of letter of credits from present $50,000 to $100,000, Finance Minister Ishaq Dar said on Monday.

    Briefing media here on Monday, Minister for Finance Senator Ishaq Dar announced the government’s decision to increase the threshold of letters of credits (LCs) payments from $50,000 to $100,000.

    With respect to pending cases of LCs, Ishaq Dar said that last month there were about 8,000 pending payments of LCs, out of which 4,400 cases of up to $50,000 had already been cleared while now after the government’s decision of increasing the threshold up to $100,000, 1,365 more cases would be cleared.

    “I met with the Governor Sate Bank of Pakistan (SBP) in Karachi on Sunday, and with the consent of SBP, the government has approved increase of the threshold up to $100,000”, he added.

    He said the decision would be implemented from November 1, 2022.

    The government has also decided to keep the prices of petroleum products unchanged for first half of November 2022 besides extending the last date for filing of tax returns.

    “The government has decided to keep the prices of Petrol, High Speed Diesel, Light Diesel, and Kerosene Oil unchanged for for next 15 days”, Ishaq Dar said.

    Further the minister said that today [October 31] was the last date for filing income tax returns, however on the request of representations of tax bar association and the business community, the government has decided to extend the date for one month up to November 30.