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Author: Mrs. Anjum Shahnawaz

  • Pakistan implemented currency declaration decade ago: FBR

    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

  • Pakistan to review petroleum prices on September 15, 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.

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

    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.

  • Pakistan raises petroleum prices by 100% in one year

    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%

  • FBR directs speedy clearance of flood relief goods

    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.

    (more…)
  • USC to disburse ration bags worth Rs540 million to flood victims

    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.

  • FBR directs 81 retailers to integrate with POS system

    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.

  • President Alvi directs State Life Insurance to pay compensation

    President Alvi directs State Life Insurance to pay compensation

    ISLAMABAD: The President of Pakistan Dr. Arif Alvi has directed State Life Insurance Corporation to pay compensation to family of policy holders.

    While rejecting four similar representations preferred by State Life Insurance Corporation of Pakistan (SLICP) against the decisions of the Wafaqi Mohtasib, President Dr Arif Alvi has directed SLICP to pay Rs 1.78 million to the family members of the policyholders, a statement said on Tuesday.

    READ MORE: President Alvi rejects Habib Bank plea, orders to pay victims

    He said that by denying rightful dues to the claimants SLICP has committed maladministration.

     The President disregarded the arguments of SLICP and said that SLICP had failed to prove the existence of alleged pre-insurance ailments with irrefutable evidence at the time of approving the life insurance policies to deceased policyholders.

    The President said that while filing appeals, the SLICP did not factor in the reports of its own Field Officers who had declared the insured persons as completely healthy.

    READ MORE: HBL ordered to compensate bank fraud victim

    He further observed that the denial of life insurance claims without irrefutable evidence was highly unjustified and reflected maladministration on the part of the SLICP.

    The President held that in all four cases, no clinical investigation or diagnostic assessment had been produced by SLICP to corroborate that the deceased policyholders were in fact patients of different diseases.

    READ MORE: FBR directed to bring entire sugar supply chain into tax net

    He rejected all four representations and directed SLICP to report compliance to the Mohtasib within 30 days. As per details, the complainants (Mst Irshad Bibi, Mst Samreen Aasima, Muahammad Awais and Muhammad Ismail) had approached SLICP for the payment of the sum assured as per the insurance policies.

    SLICP refused to pay the claims by alleging that the deceased policyholders had pre-insurance ailments, such as TB, Cystic Bronchiectasis, kidney disease or lung disease, which they wilfully kept secret at the time of obtaining the policies.

    READ MORE: President Alvi directs bank to refund unfair recovery

    Feeling aggrieved, the complainants separately approached the Wafaqi Mohtasib to seek compensation, which passed the orders in their favour. Later, SLICP filed representations against the decisions of the Mohtasib with the President, which were also rejected.

  • FBR transfers 153 IRS officers in major reshuffle

    FBR transfers 153 IRS officers in major reshuffle

    The Federal Board of Revenue (FBR) has undertaken a significant reshuffle in the Inland Revenue Service (IRS), announcing the transfers and postings of 153 officers in the latest round of administrative changes.

    (more…)
  • FBR transfers 45 senior customs officers of BS-19-20

    FBR transfers 45 senior customs officers of BS-19-20

    The Federal Board of Revenue (FBR) of Pakistan has undertaken a major reshuffle, transferring and posting 45 senior officers from grades BS-19 and BS-20 of the Pakistan Customs Service (PCS).

    (more…)