The Federal Board of Revenue (FBR) has undertaken a reshuffle in the senior echelons of the Pakistan Customs Service (PCS), announcing the transfer and posting of officers in the BS-21 cadre with immediate effect until further orders.
(more…)Author: Mrs. Anjum Shahnawaz
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FBR imposes major penalty on Customs appraising officer
ISLAMABAD: The Federal Board of Revenue (FBR) has imposed major penalty of ‘compulsory retirement from service’ upon a customs appraising officer on the charges of misconduct and inefficiency.
According to a notification issued on Monday, the FBR said that disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against Nihal Kazim, Appraising Officer (BS-16), Collectorate of Customs Appraisement (West), Karachi through a charge sheet issued on October 29, 2019.
READ MORE: Tariq Ghani posted as Director Intelligence IR Karachi
Ms. Rabel Khokhar, Assistant Collector, the then Collectorate of Customs Appraisement, Customs House, Karachi was appointed as Inquiry Officer to conduct inquiry on account of various acts of omission and commission committed by the accused officer constituting “Inefficiency” and “Misconduct”.
The Inquiry Officer submitted Inquiry Report dated January 29, 2020, according to which the charges of “Inefficiency” and “Misconduct” were established against the accused officer.
A Show Cause Notice dated July 17, 2020 was issued to the accused officer and in response, he submitted his defence reply and also appeared for personal hearing before the Collector/Authorized Officer on August 11, 2020.
READ MORE: FBR transfers BS-19, BS-20 Customs officers
After considering the inquiry report, reply of the accused to the Show Cause Notice and his oral submissions during the personal hearing with the Authorized Officer, the accused officer has been found guilty of “Inefficiency” and “Misconduct”.
The Authorized Officer/ Collector recommended imposition of major penalty upon the accused. The Member (Admn/HR) / Authority before deciding the case afforded an opportunity of personal hearing to the accused on zoom/ telephone phone due to his illness on June 23, 2022.
The Member (Admn), FBR being “Authority” in this case, after having carefully considered case record, inquiry report, verbal submissions of the accused during hearing and recommendations of the Authorized Officer/ Collector has found no solid evidence and merits in the stance of the accused for his prolonged un-authorized absence from duty for three years.
READ MORE: Senior Customs officers transferred from Multan
Accordingly, the Member (Admn/ HR) / Authority has observed that the charges of “Inefficiency” and “misconduct” under Rule-3(a)&(b) of Civil Servants (E&D) Rules, 1973 stand established against the accused.
The Authority has, therefore, imposed major penalty of “Compulsory Retirement from Service” upon Nihal Kazim, Appraising Officer (BS-16), Collectorate of Customs Appraisement (West), Karachi under Rule 4(1)(b)(ii) of the Civil Servants (E&D) Rules, 1973. Moreover, his period of absence from duty i.e. November 20, 2016 till date is treated as Extra Ordinary Leave (EOL) and the excess amount drawn as pay and allowances is to be recovered from pensionary benefits.
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He will have a right to file appeal against this Order to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 within a period of 30 days from the date of communication of this Notification.
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Tariq Ghani posted as Director Intelligence IR Karachi
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday transferred and posted Tariq Ghani, a BS-20 officer of Inland Revenue Service (IRS) as Director, Directorate General of Intelligence and Investigation, IR, Karachi with immediate effect.
Through a notification, the FBR transferred and posted following officers of IRS from BS-17 to BS-20:
READ MORE: FBR transfers BS-19, BS-20 Customs officers
01. Asem Iftikhar (Inland Revenue Service/BS-20) has been transferred and posted as Director, (HQ) Directorate General of Intelligence and Investigation (Inland Revenue), Islamabad from the post of Director General (OPS), Directorate General of Digital Invoicing and Analysis, Islamabad. The officer has been also assigned the additional charge of the post of Director, Intelligence and Investigation (IR), Islamabad and Director (Regulation), DNFBPs, Islamabad, as per rules.
02. Abdul Rehman Bullo (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation (Inland Revenue), Hyderabad from the post of Director, Director of Intelligence and Investigation (IR), Karachi.
READ MORE: Senior Customs officers transferred from Multan
03. Dr. Tariq Ghani (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation (Inland Revenue), Karachi from the post of Commissioner, Audit-III Medium Taxpayers office, Karachi. The officer has also been assigned the additional charge of the post of Director (Regulations), DNFBPs, Karachi as per rules.
04. Behzad Anwar (Inland Revenue Service/BS-20) has been posted as Director, Directorate of Intelligence and Investigation (Inland Revenue), Lahore on return from leave.
READ MORE: Islamabad Customs chief transferred ahead budget
05. Ms. Rabia Yaseer Durrani (Inland Revenue Service/BS-19) has been transferred and posted as Additional Director, Directorate General of Intelligence and Investigation (Inland Revenue), Islamabad from the post of Additional Commissioner, Large Taxpayers Office, Islamabad.
06. Muhammad Fiaz Hussain (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue, Corporate Tax Office, Islamabad from the post of Deputy Director, Directorate General of Intelligence and Investigation (Inland Revenue), Islamabad
07. Ms. Muntaha Saleem (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Director, Directorate General of Intelligence and Investigation (Inland Revenue), Islamabad from the post of Deputy Commissioner, Corporate Tax Office, Islamabad.
READ MORE: FBR transfers additional collectors, directors of Customs
08. Sajid Ali (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Director, Directorate General of Intelligence and Investigation (Inland Revenue), Islamabad from the post of Assistant Commissioner, AEOI Zone, Islamabad.
The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.
The above named officers have been asked to send charge Relinquishment/Assumption to FBR immediately after Relinquishment/Assumption of charge for record and further necessary action.
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FBR transfers BS-19, BS-20 Customs officers
The Federal Board of Revenue (FBR) has issued notifications for the immediate transfers and postings of officers within the Pakistan Customs Service (PCS) in BS-19 and BS-20.
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FBR announces prize winners of 7th draw of POS invoices
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday announced winners of seventh balloting of invoices issued through Point of Sale (POS) of retailers.
According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Zulfiqar Ali on the invoice issued by MALMO.
READ MORE: 101 retailers given July 10 as deadline for integration
The FBR announced winners of two second prizes of Rs500,000 each to Dr. Nasim Safdar on the invoice issued by Cakes and Bakes and Adeem on the invoice issued by SHOPEX Super Market.
Similarly, the four winners of third prize amounting Rs250,000 each are awarded to Tanveer Amir, Zarmina Wahid Jan, Muhammad Latif Zarar and Sultan Haider Malik.
The FBR conducts computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was seventh draw as it was started in January 15, 2022.
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.
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The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.
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.
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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.
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.
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FBR extends sales tax return filing date to July 20, 2022
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday extended the date for filing sales tax return for the month of June 2022 up to July 20, 2022.
The FBR in an official note extended the date of payment and submission of sales tax and federal excise return for the tax period of June 2022, for all taxpayers, up to July 20, 2022.
READ MORE: KTBA seeks date extension for filing statement, tax returns
Earlier, the Karachi Tax Bar Association (KTBA) on July 14, 2022 urged the FBR to extend the date for filing sales tax return and quarterly statement of income tax withholding up to July 31, 2022.
KTBA President Syed Rehan Hasan Jafri in a letter sent to FBR Chairman Asim Ahmad requested to extend the date of filing quarterly income tax withholding statement and monthly sales tax return for June 2022 up to July 31, 2022.
READ MORE: KTBA recommends separate tax fraud proceedings
The KTBA informed the FBR chairman that as business of the whole country was closed due to the Eid holidays from July 08, 2022 to July 12, 2022 whereas the last date for filing the Quarterly Statements under the Income Tax Ordinance, 2001, and Monthly Sales Tax Return under the Sales Tax Act for the Tax Period of June 2022 is due on the 20th July, 2022 and the 15th July, 2022 and the 18th July, 2022 respectively.
READ MORE: FBR urged to remove irritants in sales tax refund
Due to the holidays, few working days are left to feed and put all the data entries in the Quarterly Statement and Monthly Sales Tax Return which may kindly be extended looked into for the sake of facilitation on the genuine taxpayers of the country who are working on behalf of the FBR as withholding agents and contributing a huge amount into the exchequer without any compensation as their legal obligation.
READ MORE: Unified sales tax law for all tax authorities sought
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Pakistan inflation crosses 33% on high petroleum prices
ISLAMABAD: Inflation based on Sensitive Price Indicator (SPI) crossed 33 per cent in Pakistan by week ended July 14, 2022 over the same week last year mainly due to massive hike in petroleum prices.
The Pakistan Bureau of Statistics (PBS) on Friday issued weekly SPI for the week ended July 14, 2022.
READ MORE: Petroleum prices in Pakistan push inflation 13-year high
The SPI is computed on weekly basis to assess the price movements of essential commodities at shorter interval of time so as to review the price situation in the country. SPI comprises of 51 essential items collected from 50 markets in 17 cities of the country.
According to the PBS, the year on year trend depicts an increase of 33.12 per cent. The major rise in prices witnessed in items, including Diesel (141.46 per cent), Petrol (119.61 per cent), Onions (89.33 per cent), Pulse Masoor (88.60 per cent), Vegetable Ghee 1 Kg (78.92 per cent), Mustard Oil (75.72 per cent), Cooking Oil 5 litre (73.01 per cent), Vegetable Ghee 2.5 Kg (72.44 per cent), Washing Soap (59.93 per cent), Chicken (52.61 per cent), Gents Sponge Chappal (52.21 per cent), Pulse Gram (51.14 per cent), Garlic (40.54 per cent), LPG (39.95 per cent) and Pulse Mash (31.01 per cent).
READ MORE: Average inflation estimated up to 12% in FY22
While major decrease observed in the prices of Chillies Powdered (43.42 per cent), Sugar (15.13 per cent), Gur (2.41 per cent) and Pulse Moong (2.09 per cent).
The SPI for the current week ended on July 14, 2022 recorded an increase of 0.01 per cent. Increase observed in the prices of food items, Potatoes (4.72 per cent), Chicken (4.45 per cent), Cooked Daal (1.43 per cent), Rice Irri 6/9 (1.17 per cent), Rice Basmati Broken (1.14 per cent), Vegetable Ghee 2.5 Kg (1.12 per cent), Gur (1.08 per cent) and Curd (1.07 per cent).
READ MORE: Average inflation estimated up to 12% in FY22
Non-food item Washing Soap (1.59 per cent), with joint impact of (0.17 per cent) into the overall SPI for combined group of (0.01 per cent).
On the other hand, decrease observed in the prices of Tomatoes (24.55 per cent), Bananas (2.82 per cent), Pulse Gram (0.67 per cent), LPG (0.46 per cent) and Mustard Oil (0.05 per cent).
During the week, out of 51 items, prices of 29 (56.86 per cent) items increased, 05 (9.81 per cent) items decreased and 17 (33.33 per cent) items remained stable.
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Pakistan enforces austerity measures to save public money
KARACHI: Pakistan government has enforced austerity measures for the fiscal year 2022/2023 for saving public money and create space for development expenditures.
The Federal Board of Revenue (FBR) on Friday circulated a notification of the ministry of finance related to austerity measures.
READ MORE: Pakistan’s forex reserves drop to $15.61 billion
According to the finance ministry that the federal cabinet in a meeting held recently approved the austerity measures.
The federal government enforced the following austerity measures:
1. There shall be complete ban on:
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(i) Purchase of all types of vehicles from current and development budget except utility vehicles such as ambulances, busses for educational institutions, solid waste vehicles, etc.;
(ii) Creation of new posts except those required for development projects;
(iii) Treatment abroad at government expenses;
(iv) Appointment of contingent paid / daily wages staff except for development projects;
(v) Purchase of office furniture except for development projects;
(vi) Purchase of machinery and equipment including air conditioners, microwave, fridge, photocopier, etc.;
(vii) Official visits abroad by government functionaries where the Pakistan government funding is involved except obligator visits;
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(viii) Official lunches/dinners/hi-tea except for foreign delegations;
(ix) Periodical, magazines, newspapers, etc.
2. Principal Accounting Officers shall ensure that:
(i) Consumption of utilities shall be reduced by 10 per cent;
(ii) Existing entitlement for petroleum products for government functionaries should be reduced by 30 per cent;
(iii) Avoidable travel should be curtailed by promoting use of Zoom / video links;
(iv) Vacant / redundant / non-productive posts should be abolished.
READ MORE: Gas price hike report baseless: Musadiq Malik
3. In addition to above, federal government has further decided that:
(i) The use of petroleum products by vehicles of ministries would be slashed by 40 per cent and security vehicles of cabinet members would be reduced by 50 per cent;
(ii) VVIP cavalcades’ expenses would be reduced without compromising security.
The federal government urged the provincial government should also adopt such austerity measures.
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Tax officials directed to submit asset declarations
ISLAMABAD: The government has directed all tax officials of Federal Board of Revenue (FBR) to submit their declaration of assets for the year ending June 30, 2022 by July 15, 2022.
The FBR in this regard referring a letter of the Establishment Division, on Thursday intimated all the heads of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS).
READ MORE: KTBA seeks date extension for filing statement, tax returns
According to the establishment division letter the declaration of assets and liabilities for the year ending July 30, 2022 are required to be submitted by all the officers / officials of the FBR by July 15, 2022.
READ MORE: KTBA recommends separate tax fraud proceedings
Furthermore, all the officers of IRS and PCS and all concerned serving under respective tax offices and customs stations have been directed to submit their declaration of assets and liabilities for the year ending on June 30, 2022 latest by July 15, 2022. A certificate to this effect may also be provided to the FBR Headquarter by July 25, 2022.
READ MORE: FBR urged to remove irritants in sales tax refund
The FBR warned all the offices that non-compliance of the instructions tantamount to misconduct it terms of the Government Servants (Conduct) Rules, 1964 and therefore conginzable under the Government Servants (Efficiency & Discipline) Rules, 1973.
READ MORE: Unified sales tax law for all tax authorities sought
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SBP’s monetary policy tightening appropriate: IMF
ISLAMABAD: The International Monetary Fund (IMF) has supported the monetary tightening by the State Bank of Pakistan (SBP) saying that it was necessary to bring down inflation.
The IMF in a statement related to Staff Level Agreement (SLA) with Pakistan authorities, issued on Thursday said that Pakistan’s headline inflation exceeded 20 percent in June, hurting particularly the most vulnerable.
READ MORE: IMF demands Pakistan to remove fuel, energy subsidies
“In this regard, the recent monetary policy increase was necessary and appropriate, and monetary policy will need to be geared towards ensuring that inflation is brought steadily down to the medium-term objective of 5–7 percent.”
The SBP on July 07, 2022 raised the key policy rate by 125 basis points to bring it at 15 per cent. The central bank increased the policy rate from 7 per cent in September 2021 to 15 per cent by July 07, 2022.
Importantly, to enhance monetary policy transmission, the rates of the two major refinancing schemes EFS and LTFF (which have over recent months been raised by 700 basis points and 500 basis points respectively) will continue to be linked to the policy rate. “Greater exchange rate flexibility will help cushion activity and rebuild reserves to more prudent levels,” it added.
READ MORE: Foreign investment falls by 57% in 10MFY22: SBP
IMF staff and the Pakistani authorities have reached a staff level agreement on policies to complete the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility (EFF). The agreement is subject to approval by the IMF’s Executive Board.
High international prices, and a delayed policy action worsened Pakistan’s fiscal and external positions in FY22, led to significant exchange rate depreciation, and eroded foreign reserves.
The immediate priority is to stabilize the economy through the steadfast implementation of the recently approved budget for FY23, continued adherence to a market-determined exchange rate, and a proactive and prudent monetary policy. It is important to expand social safety to protect the most vulnerable, and accelerate structural reforms including to improve the performance of state-owned enterprises (SOEs) and governance.
READ MORE: Current account deficit swells to $13.78 bn in 10 months
The IMF team has reached a staff-level agreement (SLA) with the Pakistan authorities for the conclusion of the combined seventh and eight reviews of the EFF-supported program.
The agreement is subject to approval by the IMF’s Executive Board. Subject to Board approval, about $1,177 million (SDR 894 million) will become available, bringing total disbursements under the program to about $4.2 billion. Additionally, in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$7 billion.
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Following are the key points of IMF statement:
“Pakistan is at a challenging economic juncture. A difficult external environment combined with procyclical domestic policies fueled domestic demand to unsustainable levels. The resultant economic overheating led to large fiscal and external deficits in FY22, contributed to rising inflation, and eroded reserve buffers.
“To stabilize the economy and bring policy actions in line with the IMF-supported program, while protecting the vulnerable, policy priorities include:
Steadfast implementation of the FY2023 budget. The budget aims to reduce the government’s large borrowing needs by targeting an underlying primary surplus of 0.4 percent of GDP, underpinned by current spending restraint and broad revenue mobilization efforts focused particularly on higher income taxpayers. Development spending will be protected, and fiscal space will be created for expanding social support schemes. The provinces have agreed to support the federal government’s efforts to reach the fiscal targets, and Memoranda of Understanding have been signed by each provincial government to this effect.
Catch-up in power sector reforms. On the back of weak implementation of the previously agreed plan, the power sector circular debt (CD) flow is expected to grow significantly to about PRs 850 billion in FY22, overshooting program targets, threatening the power sector’s viability, and leading to frequent power outages. The authorities are committed to resuming reforms including, critically, the timely adjustment of power tariff including for the delayed annual rebasing and quarterly adjustments, to improve the situation in the power sector and limit load shedding.
Reducing poverty and strengthen social safety. During FY22, the unconditional cash transfer (UCT) Kafalat scheme reached nearly 8 million households, with a permanent increase in the stipend to PRs 14,000 per family, while a one-off cash transfer of PRs 2,000 (Sasta Fuel Sasta Diesel, SFSD) was granted to about 8.6 million families to alleviate the impact of rampant inflation. For FY23, the authorities have allocated PRs 364 billion to BISP (up from PRs 250 in FY22) to be able to bring 9 million families into the BISP safety net, and further extend the SFSD scheme to additional non-BISP, lower-middle class beneficiaries.
Strengthen governance. To improve governance and mitigate corruption, the authorities are establishing a robust electronic asset declaration system and plan to undertake a comprehensive review of the anticorruption institutions (including the National Accountability Bureau) to enhance their effectiveness in investigating and prosecuting corruption cases.
“Steadfast implementation of the outlined policies, underpinning the SLA for the combined seventh and eighth reviews, will help create the conditions for sustainable and more inclusive growth. The authorities should nonetheless stand ready to take any additional measures necessary to meet program objectives, given the elevated uncertainty in the global economy and financial markets.
“The IMF team thanks the Pakistani authorities, private sector, and development partners for fruitful discussions and cooperation during the discussions.”