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Author: Mrs. Anjum Shahnawaz

  • Pakistan’s sensitive price inflation surges by 45%

    Pakistan’s sensitive price inflation surges by 45%

    ISLAMABAD: The inflation based on Sensitive Price Indicator (SPI) has surged by around 45 per cent by the week ended August 25, 2022, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

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

    The PBS said that prices of essential items have recorded an increase of 44.58 per cent year on year for the week ended August 25, 2022.

    The essential items which recorded increase in prices during the period are included: Tomatoes (178.10 per cent), Onions (155.14 per cent), Diesel (108.77 per cent), Petrol (94.53 per cent), Pulse Masoor (90.74 per cent), Cooking Oil 5 litre (70.61 per cent), Mustard Oil (67.58 per cent), Vegetable Ghee 2.5 Kg (64.71 per cent), Vegetable Ghee 1 Kg (63.93 per cent), Washing Soap (63.27 per cent), Electricity for Q1 (63.03 per cent), Chicken (55.76 per cent) and Pulse Gram (55.07 per cent), while a decrease observed in the prices of Chilies Powder (43.42 per cent), Sugar (16.90 per cent) and Gur (1.21 per cent).

    READ MORE: Pakistan’s headline inflation may up 24% in July 2022

    The PBS said that the SPI for the current week ended on August 25, 2022 recorded an increase of 1.83 per cent.

    Increase is observed in the prices of food items, Tomatoes (43.09 per cent), Onions (41.13 per cent), Potatoes (6.32 per cent), Eggs (3.43 per cent), Garlic (2.23 per cent), Powdered Milk (1.53 per cent) and Pulse Mash (1.12 per cent), non-food items, Cigarettes (2.26 per cent) and LPG (1.95 per cent).

    On the other hand, a decrease observed in the prices of Pulse Masoor (1.18 per cent), Vegetable Ghee 1Kg (1.00 per cent), Vegetable Ghee 2.5Kg (0.82 per cent), Bananas (0.61 per cent), Cooking Oil 5 litre (0.51 per cent), Sugar (0.28 per cent) and Mustard Oil (0.07 per cent).

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

    During the week, out of 51 items, prices of 23 (45.10 per cent) items increased, 07 (13.72 per cent) items decreased and 21 (41.18 per cent) items remained stable.

    The bureau computes the SPI on a weekly basis to assess the price movements of essential commodities at a shorter interval of time so as to review the price situation in the country. SPI comprises 51 essential items collected from 50 markets in 17 cities of the country.

    READ MORE: Petroleum prices in Pakistan push inflation 13-year high

  • FBR slaps additional customs duty at 35% on motor vehicles

    FBR slaps additional customs duty at 35% on motor vehicles

    ISLAMABAD: The Federal Board of Revenue (FBR) has imposed additional customs duty at the rate of 35 per cent on import of motor vehicles under various HS Codes.

    The FBR issued SRO 1572(I)/2022 dated August 22, 2022 to notify amended rates of additional customs duty on import of various items. Through the instant SRO, the revenue body amended SRO 967(I)/2022 dated June 30, 2022.

    According to the latest SRO 1572(I)/2022, the FBR said thirty-five per cent additional customs duty on vehicle falling under PCT codes 8703.2323, 8703.2329, 8703.2490, 8703.3223, 8703.3225, 8703.3229, 8703.3390 and 8703.9000.

    The FBR said that the notification would take effect on and from August 22, 2022 till 21st day of February 2023.

    Through previous SRO 967(I)/2022 the additional customs duty was imposed at 2 per cent on cars, jeeps, light commercial vehicles in CKD condition exceeding 1,000 CC and heavy commercial vehicles in CKD condition.

    The FBR imposed the additional customs duty in order to discourage luxury imports into the country in order to save foreign exchange.

    It is worth mentioning that the government on May 19, 2022 through imposed a complete ban on import of luxury and non-essential items in order to stop depletion in foreign exchange reserves as well as stop free fall in rupee value.

    READ MORE: Pakistan lifts ban on import of cars, phones, luxury items

    However, on August 20, 2022, the government reversed its decision and allowed import of luxury and non-essential items despite the fact the foreign exchange reserves were declined drastically and the rupee value also registered massive fall against the US dollar.

    Alternate to allowing import of luxury and non-essential items, the government increased regulatory duty and additional customs duty on import of various goods.

    READ MORE: Pakistan raises Regulatory Duty to 100 % on motor vehicle import

  • Amazon registers over 6,000 Pakistani sellers

    Amazon registers over 6,000 Pakistani sellers

    ISLAMABAD: Over 6,000 Pakistani sellers have been registered on Amazon platform, the leading global e-commerce giant, according to a press release issued on Tuesday.

    This was revealed by Pakistani Ambassador to the United States Masood Khan in the press release issued from Washington DC.

    He said that more than 6,000 sellers from Pakistan were registered last year on Amazon platforms after the leading global e-commerce giant opened seller registration for the country.

    “This was a significant breakthrough for Pakistan providing much-needed international online business exposure to the country,” he continued.

    “According to Amazon, these sellers have done good, steady business over the past few months. This is just a beginning, with a promise of huge expansion,” continued the Ambassador of Pakistan.

    He said the volume of Amazon-supported businesses would grow exponentially with better networking and integration with US online platforms.

    He was addressing a 35-member delegation of Washington Intergovernmental Professional Group (WIPG) who interacted with him at the Embassy on August 23, 2022.

    WIPG helps professionals in maximizing their network, realizing their full potential and delivering value to various stakeholders. It also assists companies, associations and organizations to connect with the right kind of workforce to achieve organizational goals.

    The delegation comprised former governor of Puerto Rico Luis Fortuno, WIPG President Nelson Garcia, economists, government officials, presidents and CEOs of corporations, entrepreneurs, investment fund managers, legal experts and diplomats.

    The Ambassador said that better networking among Pak-US professionals, IT experts, businessmen, entrepreneurs and corporate leaders would create win-win solutions for the two countries and would help meet the growing needs of US economy.

    “In past two decades, the two countries remained focused on tackling security issues in the region. These decades of lost economic and business opportunities for Pakistan need to be substituted with massive investment and commercial activities”, emphasized the Pakistan envoy.

    Masood Khan said that with a 220 million population with its 100 million middle class, 130 million youth below the age of 30 years, 110 million mobile broadband subscribers and a tech savvy young human capital, Pakistan provides ideal conditions for the US investors and entrepreneurs to explore, invest and expand their businesses not only to Pakistan but to the Central Asia, West Asia, Middle East and North America.

    Highlighting the remarkable growth of start-ups and tech sector in Pakistan during past few months, the Ambassador said that the tech sector of the country was taking off and poised to serve the entire region.

    The Ambassador said that all efforts were being made to create strong linkages at all levels including government-to-government, business-to-business and most importantly people-to-people contacts.

    Our diaspora, he said, is the most reliable and resilient connecting tissue binding the two countries and its people together.

    We have to work together to further strengthen our partnerships in all possible areas including trade, investment, health, energy, climate change, green and renewable energy and agriculture.

    The Ambassador thanked the Washington-based group for exploring ways to integrate Pak professionals with their peers in America.

    Pakistan, he said, had a growing reservoir of a capable workforce. Later, the Ambassador responded to the questions of the participants about business opportunities in Pakistan, Pakistani exports to the US including rice and the security situation in South Asia.

  • Tax exemption granted to donations for PM flood relief fund

    Tax exemption granted to donations for PM flood relief fund

    ISLAMABAD: The federal government on Tuesday granted tax exemptions to donations made for Prime Minister’s Flood Relief Fund 2022.

    The Federal Board of Revenue (FBR) issued SRO 1590(I)/2022 dated August 23, 2022 to exempts deduction of tax under various provisions of Income Tax Ordinance, 2001.

    According to the SRO an amendment has been made into Part 1 of the Second Schedule of the Income Tax Ordinance, 2001 that any income derived from The Prime Minister’s Flood Relief Fund, 2022 has been exempted from income tax with effect on and from August 5, 2022.

    Furthermore, an amendment has been made to Part IV of the Second Schedule under which minimum tax under Section 113 of the Income Tax Ordinance, 2001 shall not apply to the flood relief fund.

    In the same part of the schedule a new clause 120 has been inserted under which Section 151 related to profit from debt shall not apply to the relief fund with effect on and from August 5, 2022.

    It further said that the provisions of Section 236 of Income Tax Ordinance, 2001 shall not apply on the amount donated through SMS to the Prime Minister’s Flood Relief Fund, 2022 with effect on and from August 5, 2022.

    The FBR issued another SRO 1589(I)/2022 dated August 23, 2022, under which the federal government exempted the federal excise duty leviable on any donation received in Prime Minister’s Flood Relief Fund, 2022. “The notification shall take effect on and from August 5, 2022,” the FBR added.

    The Finance Division on August 5, 2022 issued a notification to establish Prime Minister’s Flood Relief Fund 2022.

    According to the notification: “It has been decided to establish / open with immediate effect a Fund to be known as ‘Prime Minister’s Flood Relief Fund 2022’ for collective national effort to meet the challenge of providing relief and rehabilitation to the affected population due to excessive rains and floods across the country.

    It said that all proceeds and payments for the fund will be received at all branches of State Bank of Pakistan (SBP), all treasuries and branches of National Bank of Pakistan (NBP) and all other scheduled banks.

    The fund may receive donations from both domestic, international donors and contributions from abroad which will be received at all the branches of above referred banks where such branches are existing. In other foreign countries contributions will be received at Pakistan missions and remitted to the State Bank of Pakistan which would prescribe necessary procedure for their accounting.

  • Pakistan raises Regulatory Duty to 100 % on motor vehicle import

    Pakistan raises Regulatory Duty to 100 % on motor vehicle import

    Pakistan has increased the regulatory duty on imported motor vehicles from 90% to 100%. The decision, communicated through the issuance of SRO 1571(I)/2022 by the Federal Board of Revenue (FBR), comes as part of the government’s efforts to stabilize the balance of payments and manage the outflow of foreign exchange.

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  • Pakistan amends laws to tax retailers

    Pakistan amends laws to tax retailers

    ISLAMABAD: Pakistan on Monday revised laws to impose tax on retailers after suspending fixed tax scheme. President Arif Alvi has signed the bill namely Tax Laws (Second Amendment) Ordinance, 2022 to promulgate the revised taxation on the retailers.

    Through the immediate ordinance, amendments have been made to Sales Tax Act, 1990 under which retailers are required to pay sales tax through electricity bill.

    READ MORE: FBR allows tax refund deducted through electricity bills

    The retailers/shopkeepers are now required to pay 5 per cent of the electricity bill is amounting up to Rs20,000.

    The rate of tax is not applicable on the Tier-1 retailers as a separate mechanism for charging sales tax is in vogue.

    The sales tax rate shall be 7.5 per cent in case the electricity bill is above Rs20,000.

    The amendments have been applicable from July 01, 2022. This means the retailers have to pay the tax on their electricity bill issued for the month of July 2022.

    A commissioner of Inland Revenue, Federal Board of Revenue (FBR) has been authorized to issue order to the electricity supplier regarding exclusion of a person who is either a Tier-1 retailer or not a retailer.

    READ MORE: Pakistan decides to roll back fixed tax scheme

    According to the latest ordinance, notwithstanding anything contained in this Act, the Federal Government may, in lieu of or in addition to the tax under sub-section (9), by notification in the official Gazette, levy and collect such amount of tax at such rates and from such date as it may deem fit, from retailers, other than those falling in Tier-1, through their monthly electricity bill, and may also specify the mode, manner or time of payment of such tax:

    Provided that different rates or amounts of tax may be specified for different persons or class of persons.

    The ordinance also amended Income Tax Ordinance, 2001 and introduced special provision relating to payment of tax through electricity connections.

    READ MORE: FTO investigates tax collection through electricity bills

    It said that notwithstanding anything contained in the Ordinance, a tax shall be charged and collected from retailers other than Tier-I retailers as defined in the Sales Tax Act, 1990 (VII of 1990) and specified service providers on commercial electricity connections at the rates specified in the income tax general order issued in terms of sub-section (2).

    Sub-Section (2): For the purposes of this section, the Federal Government or the Board with the approval of the Minister in-charge pursuant to the approval of the Economic Coordination Committee of the Cabinet may, issue an income tax general order to-

    (a) provide the scope, time, payment, recovery, penalty, default surcharge, adjustment or refund of tax payable under this section in such manner and with such conditions as may be specified;

    (b) provide the collection of tax on the amount of bill or on any basis of consumption, in addition to or in lieu of advance tax collectible under sub-section (1) of section 235, at such rates or amounts, from such date and with such conditions as may be specified;

    READ MORE: Withdrawal of sales tax through electricity bills demanded

    (c) provide record keeping, filing of return, statement and assessment in such manner and with such conditions as may be specified;

    (d) provide mechanism of collection, deduction and payment of tax in respect of any person;

    (e) include or exempt any person or classes of persons, any income or classes of income from the application of this section, in such manner and with such conditions as may be specified; and

    (f) provide that tax collected under this section shall in respect of such persons or classes of persons be adjustable, final or minimum, in respect of any income to such extent and with such conditions as may be specified.

    The provisions of sub-section (1) of section 235 shall apply to the persons as specified therein unless specifically exempted under the income tax general order issued under sub-section (2).

    The provisions of section 100BA and rule 1 of the Tenth Schedule shall not apply to the tax collectible under this section unless specifically provided in respect of the person or class of persons mentioned in the income tax general order issued under sub-section (2).”

  • Pakistan implements new amendments to tax laws

    Pakistan implements new amendments to tax laws

    In a move aimed at enhancing revenue generation during the current fiscal year, Pakistan has implemented new amendments to both direct and indirect tax laws.

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  • Inquiry ordered into collection of increased sales tax ratio

    Inquiry ordered into collection of increased sales tax ratio

    The government on Sunday ordered an inquiry into the collection of sales tax at increased rates from retailers. Prime Minister Muhammad Shehbaz Sharif directed the investigation, focusing on the imposition of a higher sales tax ratio on small traders through electricity bills, which exceeded the agreed-upon rate.

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  • President Alvi rejects Habib Bank plea, orders to pay victims

    President Alvi rejects Habib Bank plea, orders to pay victims

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has rejected plea in six different cases filed by Habib Bank Limited (HBL) and ordered to pay victims.

    A statement issued on stated that the President ordered the HBL to compensate the victims of online banking fraud as justifications presented by the bank were not sufficient.

    READ MORE: HBL ordered to compensate bank fraud victim

    Dr. Alvi directed HBL to refund and compensate the 6 defrauded customers with their stolen money and observed that since the bank failed to prove observance of relevant provision of laws, rules and regulations, therefore, its representations were devoid of any merit and deserved to be rejected.

    The President rejected HBL’s six representations involving a total amount of Rs. one million and observed that victims were deprived of their hard earned deposits when the bank unilaterally activated the electronic funds transfer (EFT) facility without the request/consent of account holders and failed to put in place necessary safeguards against online exploitation of the account holders by the fraudsters.

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

    In all six cases, the President found the bank negligent of its duty to inform the account holders about the pros and cons of activating the electronic funds transfer (EFT) as required by the mandatory guidelines of the State Bank of Pakistan (SBP).

    Had the bank not opened EFT facility without customers’ consent, the account holders could have avoided the financial loss, he added.

    The President rejected the bank’s claim that all transactions were 3D secured, being a secondary step, by observing that the State Bank of Pakistan (SBP), required all banks to register its customers for internet banking prior to offering them internet based products and services and putting in place all necessary safety measures to safeguard its clients from fraudsters.

    READ MORE: President Alvi directs bank to refund unfair recovery

    In his decisions, the President concluded that since the bank could not produce any evidence to the effect that it had complied with the provisions of relevant laws, rules and regulations, therefore, its representations were devoid of any merit and deserved to be rejected.

    According to details, the account holders were called by fraudsters who lured them in their trap by providing them information regarding their names, CNIC, dates of birth, ATM Card numbers and obtained from them the names of their mothers and used this information to deprive the account holders of their deposits by making multiple e-commerce transactions, even though the bank customers were not using any mobile app and they were also in possession of their ATM Cards.

    The victims approached their respective bank branches to freeze their accounts and seek refund, however, they were not provided any relief by the bank on the grounds that they themselves had shared their personal banking credentials with unknown callers.

    READ MORE: President Alvi rejects FBR plea in maladministration cases

    Feeling aggrieved, the account holders approached the Banking Mohtasib of Pakistan (BMP), after hearing arguments on account of banking malpractices, maladministration, wrong doings, the fraudulent transactions, the corrupt and malafide practices by the Bank officials, it decided the cases in favor of the applicants.

    The Bank, however, chose to further escalate the matter and filed separate representations with the President which were rejected and the Bank was directed to comply with the directions of the Banking Ombudsman.

  • FBR revises property valuation for Gwadar areas

    FBR revises property valuation for Gwadar areas

    In a strategic initiative aimed at enhancing tax collection and ensuring fair market valuation, the Federal Board of Revenue (FBR) has revised the valuation of properties in the Gwadar region. The move, outlined in the SRO 1271(I)/2022 dated August 01, 2022, represents a crucial step in aligning property valuations with current market dynamics.

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