Author: Mrs. Anjum Shahnawaz

Slashing petroleum prices summary to be sent: Miftah

ISLAMABAD: The finance ministry will send a summary to reduce the prices of petroleum products for next fortnight on Wednesday, July 13, 2022, Finance Minister Miftah Ismail said on Tuesday.

Earlier, Prime Minister Shehbaz Sharif directed the ministries of petroleum and finance to prepare the summary to reduce prices of petroleum products to provide relief to the masses.

READ MORE: Pakistan may cut petroleum prices from July 16, 2022

The government has decided to reduce the prices of petroleum products in the wake of massive fall in prices of crude oil in in the international markets.

“After receiving the summary from the petroleum division, we will try to send it to the PM House,” Miftah Ismail said while talking to a private TV channel.

READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

He said, prices of petroleum would be reduced on the directives of the prime minister for public interest.

The prime minister, he said, sincerely wanted to give the benefits of low petroleum prices in the international market to people without any delay.

INFORMATION FROM REUTERS:

READ MORE: Gas price hike report baseless: Musadiq Malik

Global benchmark Brent crude tumbled $7 to below $100 a barrel on Tuesday on a strengthening dollar, demand-sapping COVID-19 curbs in top crude importer China, and rising fears of a global economic slowdown.

“The sharp drop followed a month of volatile trading in which investors have sold oil positions on worries that aggressive interest rate hikes to stem inflation will spur an economic downturn that will pull the rug out from oil demand,” according to the international news agency.

READ MORE: Govt. halts gas supply to export industry: APTMA

Brent crude futures were down $7.21, or 6.7 per cent, at $99.89 a barrel by 1:46 p.m. EDT (1746 GMT). U.S. West Texas Intermediate crude was down $7.80, or 7.5 per cent, at $96.30.

July 12, 2022
Pakistan may cut petroleum prices from July 16, 2022

ISLAMABAD: Pakistan likely to cut prices of petroleum products from July 16, 2022 in the wake of falling oil prices in the international markets.

Prime Minister Shehbaz Sharif on Tuesday directed the authorities to pass on the full benefit of falling oil prices in the international markets to the masses.

READ MORE: Gas price hike report baseless: Musadiq Malik

The premier directed the ministries of petroleum and finance to prepare a summary for reduction in oil prices for next fortnight starting from July 16, 2022.

Chairing a meeting on fuel prices, the Prime Minister said the people spent a difficult time, now they have the right to get full relief.

He said we will take every step for the provision of relief to the masses who suffered heavily because of inflation caused by the previous government.

READ MORE: Govt. halts gas supply to export industry: APTMA

The Prime Minister said if the grace and blessings of Allah Almighty continue like this, they will bring more ease in the lives of the people.

The meeting was also attended by senior officials of Oil and Gas Regulatory Authority (OAGRA) and other ministries and departments.

Previously, the government was continuously increasing the prices of petroleum products since May 26, 2022 by eliminating subsidies and imposition of petroleum levy.

The prices of petroleum products effective from July 01, 2022, were:

READ MORE: FBR exempts sales tax on oxygen gas import

The new prices of petrol have been increased by Rs14.85 per liter to Rs248.74 from Rs233.89.

The rate of high speed diesel has been increased by Rs13.25 per liter to Rs276.54 from Rs263.31.

The rate of kerosene oil has been increased by Rs18.83 per liter to Rs230.26 from Rs211.43.

Similarly, the rate of light speed diesel has been increased by Rs18.68 per liter to Rs226.15 from Rs207.47.

READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

Although, the prime minister directed the authorities to reduce the prices of petroleum products in the wake of fall in oil prices in the international markets but the imposition of petroleum levy may not give the government much room to reduce the prices drastically.

Recently, National Assembly (NA) approved a levy of Rs50 per liter on each petroleum product. The assembly allowed the government to include the levy in the prices of petroleum products up to Rs50 per liter of each product.

July 12, 2022
Pakistan imposes tax at 10% on money transfers to non-residents

Pakistan has introduced a 10 percent tax on money transfers to non-residents lacking a permanent establishment within the country who derive income from various financial services.
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July 8, 2022
MCC Gwadar to auction motor vehicles on July 18, 2022

ISLAMABAD: Model Customs Collectorate (MCC) Gwadar has announced auction of motor vehicles on July 18, 2022 which will be held at Custom House Gwadar.

Following is the list of motor vehicles to be presented for the auction:

01. Zamyad Pickup, Chassis No. NAZDL104TD-0068010

02. Zamyad Pickup, Chassis No. NAZPL140TB-N272445

READ MORE: Customs Sukkur to auction huge lot of motor vehicles

03. Toyota Pickup S/cabin, Model 1984, Chassis No. YN55-0017594

04. Toyota Pickup S/cabin Model 1984 Chassis No. YN55-0018440

05. Toyota Hilux Surf Model 1999 Chassis No. RZN185-9030039

06. Toyota Hilux Surf Model 1998 Chassis No. RZN185-0031909

07. Toyota Premio Model 2008 Chassis No. NZT260-3038101

08. Toyota Axio Model 2007 Chassis No. ZRE142-6008183

READ MORE: Customs to auction NDP vehicles on June 8, 2022

09. Toyota Vitz Model 2004 Chassis No. SCP13-0030163

10. Toyota Probox Model 2003 Chassis No. ZNE10-0101673

11. Toyota Land Cruiser Pickup Model 1988 Chassis No. FJ75-0043421

12. Toyota Land Cruiser Pickup Model 1988 Chassis No. FJ75-0074709

13. Toyota Land Cruiser Pickup Model 1988 Chassis No. FJ75-0075357

14. Toyota Land Cruiser VX 4×4 Model 1998 Chassis No. UZJ100-0015026

15. Toyota Hilux D/cabin Vigo Model 2005 Chassis No. MR0FZ29G701508652

READ MORE: Lahore Customs to auction vehicles on May 26, 2022

16. Toyota Land Cruiser Pickup Model 1986 Chassis No. FJ75-0040747

17. Toyota Hilux Surf Model 2003 Chassis No. RZN215-0008039

18. Toyota Land Cruiser Pickup Model 1986 Chassis No. FJ75-0043119

19. Toyota Premio Model 2003 Chassis No. ZZT245-0018897

20. Toyota Land Cruiser Prado Model 1995 Chassis No. KZJ71-0004062

21. Toyota Hilux Pickup S/Cabin Model 1983 Chassis No. RN40-156765

22. Toyota Hilux Pickup S/Cabin Model 1983 Chassis No. RN40-0155452

23. Toyota Hilux Pickup S/Cabin Model 1983 Chassis No. RN40-0168695

24. Toyota Surf Model 1998 Chassis No. UZN185-0078719

READ MORE: Gwadar Collectorate auctions motor cars on May 23

25. Hino Bus Model 2006 Chassis No. AK1JMKA-10688

26. Hino Bus Model Chassis No. AK1JRKA-177243

27. Hino Truck Model 1999 Chassis No. FG1JPC-10097

28. Hino Truck Model 2013 Chassis No. FM1JNPD-19364

29. Hino Truck Model 2015 FM8JNKD-44766

30. Hino Truck Model 2005 FD8JLF-11877

31. Hino Bus Model 2004 AK1J-11063

32. Toyota Hilux Surf SSR-X (05 door) Model 1993 KZN130-9048371

33. Hino Oil Tanker Model 1997 FG1JKB-10162

34. Hino Oil Tanker 1997 FG1JPB-10349

July 8, 2022

Pakistan makes amendments to baggage rules

ISLAMABAD: The apex revenue collecting agency of Pakistan on Wednesday issued a draft to amend baggage rules.

The Federal Board of Revenue (FBR) issued SRO 985(I)/2022 to propose amendments to the Baggage Rules, 2006.

The draft proposed to substitute Rule 3 of the Baggage Rules, 2006. According to the substituted rule:

3. Allowance for Pakistani nationals not availing transfer or residence: The following shall be various allowances for the Pakistani nationals not availing transfer of residence, namely:

A. Items of personal use allowed duty-free on any visit:

(i) personal wearing apparel and clothing accessories;

(ii) one laptop computer; and

(iii) any other item except mobile phone, following allowances shall be admissible:

S. No.	Stay Abroad	Value of Duty Free allowance
(1)	(2)	(3)
(i)	Upto thirty days	Upto four hundred US Dollars (USD 400)
(ii)	Between thirty to sixty days	Upto eight hundred US Dollars (USD 800)
(iii)	More than sixty days	Upto twelve hundred US Dollars (USD 1200)

B. Purchases from a Duty Free Shop:

Duty free allowance of the aggregate value upto one hundred US dollars in case the goods are purchased from one of the duty free shops in Pakistan within sixty days of the arrival, and provided that the stay abroad of the passenger is more than sixty days.

The draft also recommended to substitute Rule 4 of the Baggage Rules, 2006, which is:

4. Allowance for Pakistani nationals availing transfer of residence:

A. Duty Free Allowance:

(i) personal household goods generally used by a family.

(ii) second hand or used professional equipment in use of a registered Pakistani practitioner during stay abroad, having proof of registration in the country abroad and duly recognized by the concerned regulatory authority or association:

Provided that an inspection certificate from an internationally recognized inspection agency in the exporting countries to the effect that such equipment is free from bacteria and other material injurious to human health, is furnished at the time of import of the equipment.

(iii) any other item (excluding mobile phones) of the value not exceeding fifteen hundred US dollars; and

(iv) weapon of non-prohibited bore for the personnel of armed forces, customs, police or any other law enforcement agency.

B. Purchases from a duty free shop:

Duty free allowances of the aggregate value upto fifteen hundred US dollars in case the goods are purchased from one of the duty free shops in Pakistan within sixty days of the arrival.

The draft rules amended table in Rule 5 of the Baggage Rules, 2006.

5. Special allowances for Foreign Exchange Remittance Card holders.— In addition to the allowances hereinbefore provided, the duty credit as specified in the Table below shall be admissible to a Pakistani national holding Foreign Exchange Remittance Card (FERC) once in a calendar year. The duty credit can also be utilized for the unaccompanied baggage or any purchase from one of the duty free shops. The duty credit under this scheme shall not be utilizable on import of vehicles.

The proposed amended table is as follow:

(1)	(2)	(3)	(4)
S.NO.	TYPE OF FERC	AMOUNT REMITTED THROUGH NORMAL BANKING CHANNEL (in US $ or equivalent foreign currency)	DUTY CREDIT IN PAKISTANI RUPEES
1.	Silver	2500 or more	20,000
2.	Silver Plus	5000 or more	40,000
3.	Golden	10,000 or more	60,000
4.	Golden Plus	25,000 or more	100,000
5.	Platinum	50,000 or more	200,000

The draft also recommended to substitute Rule 6 of the Baggage Rules, 2006, which is:

6. Allowance for foreign nationals and tourists: The following allowance shall be admissible to foreign national and tourist, namely:

(i) personal wearing apparel and clothing accessories; and

(ii) any other item (excluding mobile phones) of the value not exceeding eight hundred US dollars.

July 7, 2022

101 retailers given July 10 as deadline for integration

ISLAMABAD: The Federal Board of Revenue (FBR) has issued a list of 101 retailers and directed them to integrate by July 10, 2022 otherwise action will be taken as per law.

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

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

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.

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.

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

July 6, 2022
Pakistan allows release of banned items stuck up at ports

ISLAMABAD: Pakistan Tuesday allowed one-time release of consignment carrying imported goods that were banned by the government on May 19, 2022 and stuck up at ports.

The country through SRO 598(I)/2022 imposed a ban on import of luxury and non-essential items in order to discourage outflow of dollars and support balance of payment.

Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.

READ MORE: SBP makes permission mandatory for motor car import

In this regard the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.

Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.

In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.

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

Ministry of Commerce presented another summary on suspension of import conditions contained in import policy order 2022 with regard to import of timber/wood.

In view of hardship case of timber importers as the consignments were supplied against contracts months ago and the shipments have already arrived, the ECC decided that date of implementation of Import Policy Order 2022 regarding import of timber and wood falling under HS Codes 4401 to 4409 may be suspended till August 31, 2022 i-e for the bills of Lading issued till August 31, 2022.

The ECC also approved another summary of Ministry of Commerce to amend paragraph 3(1) of the Import policy Order 2022 to allow import of goods of Afghan origin against Pak Rupee and without the requirement of Electronic Import Form (EIF) for a period of one year, subject to the condition that Afghan exporters will provide a Certificate of Origin issued by Afghan Customs proving that the goods have originated from Afghanistan.

Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division.

READ MORE: CMOs worry over power outages, 100% cash margin on imports

Federal Minister for Planning, Development and Special Initiatives Mr. Ahsan Iqbal, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Minister of State for Petroleum Division Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of second international wheat tender 2022 opened on 1st July, 2022 for 500,000 MT.

The ECC considering the lower trend of wheat in the international market approved the lowest bid offer of M/s Cargill Int. PTE /Cargill Agro Foods Pakistan @ US$ 439.40/MT for 110,000 MT +/- 5% MOLSO to the extent of 500,000 MT.

Ministry of National Food Security & Research submitted a summary on WPF operation- purchase/ reservation of 120,000 metric tons of wheat for Afghanistan in the year 2022-23.

In view of the situation in Afghanistan and on humanitarian ground, the ECC approved the request of the WFP for purchase/ reservation of 120,000 MT of wheat from the imported wheat stock of PASSCO on the latest import price.

The amount of supplied wheat along with cost and incidentals would be charged in US dollars. The wheat will be locally grinded into wheat flour and will be supplied to Afghanistan by WFP, subject to relaxation of ban on the export of flour to the extent of the instant proposal of 120,000 MT of wheat.

READ MORE: KCCI demands release of stuck up containers

Ministry of National Food Security & Research presented another summary on the declaration of “National Disease Emergency” on account of Emergence of Lumpy Skin disease in Pakistan. The ECC after detailed discussion directed Ministry of National Food Security & Research to prepare a cost sharing plan after convening a meeting with concerned provincial secretaries and NDMA.

Ministry of Industries and Production submitted a summary on continuation of PM’s relief package, 2020, Sasta Atta initiative for KPK & expansion of Utility Stores network across Pakistan.

The ECC decided to continue subsidy on five essential commodities with direction to M/o I & P to work out feasible proposal on subsidy programme keeping in mind the financial implications.

The ECC also approved a summary submitted by Ministry of Information Technology and Telecommunication on constitution of Auction Advisory Committee to oversee spectrum auction(s) for next generation mobile services (NGMS) in Pakistan.

The Committee will be headed by Federal Minister for Finance and Revenue. The ECC also approved supplementary grant in favor of Economic Affairs Division amounting to Rs. 193.006 Billion for foreign loan repayments.

July 6, 2022
Pakistan’s import bill records over $80 bn in 2021/2022

KARACHI: The total import bill of Pakistan has crossed a record $80 billion mark, showing 42 per cent increase during fiscal year 2021/2022, according to official data released on Tuesday.

The total import bill of the country increased to $80.02 billion during fiscal year 2021/2022 as compared with $58.38 billion in the preceding fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

READ MORE: Pakistan’s trade deficit balloons $43.33 bn in 11 months

The exports of the country also posted an increase of 25.51 per cent to $31.76 billion during the fiscal year under review as compared with $25.30 billion in the preceding fiscal year.

Pakistan posted a record trade deficit of $48.26 billion in the fiscal year 2021/2022 as compared with the deficit of $31.07 billion in the preceding year, showing an expansion in deficit of 55.29 per cent.

READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

The import bill in June 2021 increased by 14 per cent to $7.72 billion when compared with $6.77 billion in the month of May 2022. It was increased by 21.57 per cent when compared with $6.35 billion in June 2021.

READ MORE: Pakistan’s March trade deficit widens by only 5.5%

The exports posted an increase of 10 per cent to $2.88 billion in June 2022 when compared with $2.63 billion in May 2022. The exports increased by 5.83 per cent when compared $2.73 billion with June 2021.

READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22

July 5, 2022

Non-ATL retailers to pay double amount of fixed tax

ISLAMABAD: Small retailers or a shopkeepers have to pay double the amount of fixed tax in case of not appearing on the Active Taxpayers List (ATL).

The federal government through the Finance Bill, 2022 introduced a scheme of fixed tax for small retailers.

However, the National Assembly approved the bill with certain changes in the fixed tax regime. The Finance Act, 2022 now has binding on the small retailer to register themselves with the tax department and appear on the Active Taxpayers list (ATL) in order to avail the fixed tax facility.

Otherwise, in case of not appearing on the ATL, the small retailer is required to pay one hundred per cent more on the amount of fixed tax.

In order to collect the tax under this regime, the government decided to recover the amount through electricity bill.

In this regard certain amendments have been made to Sales Tax Act, 1990 and Income Tax Ordinance, 2001.

In sub section 9, Section 3 of Sales Tax Act, 1990, a new proviso has been inserted through the Finance Act, 2022, which stated:

“Provided that the above rates of tax shall be increased by one hundred percent if the name of the person is not appearing in the Active Taxpayers List issued by the Board under section 181A of the Income Tax Ordinance, 2001 on the date of issuance of monthly electricity bill.”

Similarly, a new Section 99A has been inserted to the Income Tax Ordinance, 2001 and approved through the Finance Act, 2022, which is as follow:

“99A. Special provisions relating to payment of tax through electricity connections.

(1) Notwithstanding anything contained in the Ordinance, a tax shall be charged and collected from retailers other than Tier-I retailers as defined in Sales Tax Act, 1990 (VII of 1990) and specified service providers on commercial electricity connections at the rates provided in clause (2A) of Division IV, Part IV of the First Schedule.

(2) A retailer who has paid sales tax under sub-section (9) of section 3 of Sales Tax Act, 1990 (VII of 1990), shall not be required to pay tax under this section and the sales tax so paid shall constitute discharge of tax liability under this section.

(3) The tax collected or paid under this section shall be final tax on the income of persons covered under this section in respect of business being carried out from the premises where the electricity connection is installed.

(4) For the purposes of this section, Board with the approval of the Minister in-charge 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 record keeping, filing of return, statement and assessment in such manner and with such conditions as may be specified;

(d) 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.”

The rate of tax leviable under section (99A), and collectable under sub section (1A) of Section 235 shall be as under:-

Gross amount of monthly bill	Tax
Where the amount does not exceed Rs. 30,000	Rs. 3000
Where the amount exceeds Rs. 30,000 but does not exceed Rs. 50,000	Rs. 5000
Where the amount exceeds Rs. 50,000 but doesnot exceed Rs. 100,000	Rs. 10,000
Specified retailers and service providers through Income Tax General Order	Rs.50,000

July 5, 2022

FBR notifies companies return forms for tax year 2022

The Federal Board of Revenue (FBR) in Pakistan has officially released the income tax return forms for companies for the tax year 2022, signaling the commencement of the annual tax filing season.
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July 4, 2022