KARACHI, April 07, 2022 – The State Bank of Pakistan (SBP) has issued the official exchange rates for customers on Thursday, April 07, 2022.
(more…)Author: Mrs. Anjum Shahnawaz
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FBR exempts customs duty on import of oxygen gas
The Federal Board of Revenue (FBR) has issued an exemption on customs duty for the import of oxygen gas and oxygen cylinders.
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SBP’s customer exchange rates on April 06, 2022
Karachi, April 06, 2022 – The State Bank of Pakistan (SBP) has released the latest exchange rates for foreign currencies against the Pakistani Rupee (PKR) on Wednesday, April 06, 2022.
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FBR raises steel valuation amid high commodity prices
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday increased the valuation of steel products considering rising commodity prices in the international markets.
The FBR has fixed the valuation of steel products for the collection of sales tax, instead of the prevailing rates in the open market.
The fixed valuation is the minimum price on which sales tax is to be collected on the supply of steel products.
The FBR issued SRO 489(I)/2022 on April 05, 2022.
Previously, the FBR issued SRO 1465(I)/2021 dated November 15, 2021 in this regard. The FBR issued SRO 985(I)/2021 dated August 04, 2021, to introduce the valuation for collection of sales tax at 17 per cent on supply of steel products.
The FBR enhanced the valuation to Rs164,037 per metric ton from Rs153,000 per metric ton on the supply of steel bars and other long profiles.
READ MORE: FBR increases valuation of steel products
The value has been increased to Rs133,813 metric tons from Rs131,000 per metric ton on supply of steel billets.
However, the value of steel ingots has been kept unchanged at Rs126,000 per metric ton for the collection of sales tax.
The value of ship plates has been increased to Rs129,584 per metric tons from Rs126,000 per metric ton for collection of sales tax.
The value of other re-rollable iron and steel scrap has been increased to Rs125,688 per ton from Rs119,000 per metric ton for the purpose of sales tax.
The FBR further said that in case notified value of supply of the goods is higher than the value fixed, the value of goods shall be the value at which the supply is made.
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FBR issues list of 185 retailers for mandatory integration
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday issued a list of 185 retailers for mandatory integration with online tax system.
The FBR directed the retailers to integrate with the online tax system by April 10, 2022 in order to avoid harsh action.
The revenue body issued Sales Tax General Order No. 11 of 2022 asking Tier-1 retailers for integration with FBR’s Point of Sale (POS) system.
READ MORE: FBR issues list of 1,358 retailers for mandatory POS
The FBR said that the Finance Act, 2019 added sub-section 6 to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 retailer, 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 through Finance Act, 2021.
The FBR further said that in order to operationalize the 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 return 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: Prize scheme on invoices issued by retailers
As per latest the STGO a list of 185 identified Tier-1 retailers has been issued allowing them to integrate with FBR’s system by April 10, 2022 and the procedure of exclusion from the list of 185 identified retailers shall apply as laid down in Para 2 of STGO 1 of 2022 dated August 03, 2021.
The FBR said upon filing of sales tax return for the month of February 2022 for all notified Tier-1 retailers 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: FBR decides penal action against defaulting retailers
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Pakistan’s March trade deficit widens by only 5.5%
ISLAMABAD: Pakistan’s trade deficit in the month of March 2022 increased by only 5.5 per cent due to higher growth of exports during the month.
According to data released by Pakistan Bureau of Statistics (PBS) on Monday, the exports recorded a growth of 16 per cent to $2.74 billion in March 2022 as compared with $2.36 billion in the corresponding month of the last year.
READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22
On the other hand, import bill registered an increase of 10 per cent to $6.19 billion in the month of March 2022 as compared with $5.63 billion in the same month of the last year.
Therefore, the trade deficit for the month of March 2022 was recorded at $3.45 billion as compared with the deficit of $3.27 billion in March 2021, showing an increase of 5.5 per cent.
Overall the trade deficit widened by 70 per cent to $35.39 billion during first nine months (July – March) 2021/2022 as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.
READ MORE: Pakistan’s trade deficit widens by 92% in seven months
The exports of the country recorded an increase of 24.67 per cent to $23.3 billion during first nine months of the current fiscal year as compared with $18.7 billion in the same months of the last fiscal year.
Meanwhile, import bill registered an increase of 48.63 per cent to $58.69 billion during July – March 2021/2022 as compared with $39.49 billion in the corresponding period of the last fiscal year.
READ MORE: Pakistan’s trade deficit swells by 100% in 1HFY22
The balance of trade registered a deficit of 11.63 per cent to $3.45 billion in March 2022 as compared with the deficit of $3.09 billion in February 2022.
The exports recorded a decline of 3 per cent to $2.74 billion in March 2022 as compared with $2.82 billion in February 2022.
However, import bill recorded 4.72 per cent increase to $6.19 billion in March 2022 when compared with $5.9 billion in the previous month of 2022.
READ MORE: Pakistan’s trade deficit widens by 112% to $20.59 billion
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Erstwhile FATA/PATA units to get exemption on quota
ISLAMABAD: The Federal Board of Revenue (FBR) has decided to allow tax exemption to industries located in erstwhile FATA/PATA on the basis quota determined against installed capacity.
An important meeting held in FBR Headquarter on April 01, 2022, (Friday). Chairman FBR Dr. Muhammad Ashfaq Ahmed reviewed progress regarding determination of quota for import of raw material on the basis of installed capacity for the industrial units located in erstwhile FATA/PATA.
READ MORE: March collection up over 20% amid political unrest: FBR
The participants of meeting were informed that out of total 140 units of steel , oil and ghee, plastics and textile etc. in erstwhile FATA/ PATA identified for joint survey for determination of manufacturing capacity, reports about 58 units have been sent to the FBR, while reports of 20 more units were in the pipeline.
The Director General IOCO stated that the survey and reports on the remaining units will be completed in couple of weeks. Chairman FBR directed that exercise/survey to determine the installed capacity needed to be completed by April 15, 2022 positively.
READ MORE: Pakistan needs to introduce laws to tax crypto income
It was also decided that exemptions under Sixth Schedule of Sales Tax Act, 1990 and Income Tax Ordinance, 2001 will not be available to industrial units beyond their quota determined on the basis of their installed capacity after April 15, 2022.
It was reported that some of industrial units were delaying the exercise on frivolous grounds. However, such units will not be allotted any quota to import raw materials after completion of the exercise.
Chairman FBR reiterated that the business community should play its positive role to complete this survey so that misuse of exemption of taxes in these areas could be discouraged and thus a level playing field may be ensured to industries located in all parts of the country.
READ MORE: Tax slabs reduction may be considered: FBR chairman
It is pertinent to mention that at the time of merger of erstwhile Federally Administered Tribal Areas/Provincially Administered Tribal Areas in Khyber Pakhtunkhwa in 2018, tax exemptions had been granted to these areas for 5 years up to June 30, 2023.
Currently several industrial units located in these areas are manufacturing different goods including Iron & Steel, Plastic, Ghee, Textile, Plastic etc.
These units import raw material through sea port at Karachi without payment of Sales Tax and Income Tax. However, these units are required to sell the finished goods only in the newly merged Districts of erstwhile FATA/PATA and not in the tariff areas/other Districts of the Province or in other Provinces.
READ MORE: Withholding tax should be on income: FBR Chairman
To frustrate and prevent the misuse of facility of exemption of taxes on the import of raw materials by these units, different measures are being taken by FBR including escort of containers from Azakhail Dryport to the location of the concerned unit.
The meeting was attended by Member IR Operations, Member IR Policy, Member Customs Policy, Director General Input Output Coefficient Organization (IOCO), Chief Commissioner Peshawar, Chief Collector Khyber Pakhtunkhwa, concerned Collector Customs, Commissioner IR, Director IOCO and other senior officers of FBR.
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Pakistan’s headline inflation increases by 12.7% in March
ISLAMABAD: Pakistan’s headline inflation based on Consumer Price Index (CPI) increased by 12.7 per cent in March 2022 on year on year (YoY) basis as compared with an increase of 12.2 per cent in the previous month and 9.1 per cent in March 2021.
On month-on-month basis, it increased by 0.8 per cent in March 2022 as compared to increase of 1.2 per cent in the previous month and increase of 0.4 per cent in March 2021, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.
READ MORE: Food inflation rural increases by 14.6% in February 2022
CPI inflation Urban, increased by 11.9 per cent on year-on-year basis in March 2022 as compared to an increase of 11.5 per cent in the previous month and 8.7 per cent in March 2021. On month-on-month basis, it increased by 0.7 per cent in March 2022 as compared to increase of 0.9 per cent in the previous month and increase of 0.3 per cent in March 2021.
READ MORE: Pakistan’s inflation climbs up 24-month high in January
CPI inflation Rural, increased by 13.9 per cent on year-on-year basis in March 2022 as compared to an increase of 13.3 per cent in the previous month and 9.5 per cent in March 2021. On month-on-month basis, it increased by 1.0 per cent in March 2022 as compared to increase of 1.5 per cent in the previous month and increase of 0.5 per cent in March 2021.
READ MORE: Sales tax exempted on all petroleum products
Sensitive Price Indicatory (SPI) inflation on YoY increased by 13.0 per cent in March 2022 as compared to an increase of 18.7 per cent a month earlier and an increase of 18.7 per cent in March 2021. On MoM basis, it increased by 0.6 per cent in March 2022 as compared to increase of 1.3 per cent a month earlier and increase of 5.7 per cent in March 2021.
READ MORE: PM Imran reduces, freezes POL prices
Wholesale Price Index (WPI) inflation on YoY basis increased by 23.8 per cent in March 2022 as compared to an increase of 23.6 per cent a month earlier and an increase of 14.6 per cent in March 2021. WPI inflation on MoM basis increased by 3.9 per cent in March 2022 as compared to increase of 1.9 per cent a month earlier and an increase of 3.7 per cent in corresponding month i.e. March 2021.
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March collection up over 20% amid political unrest: FBR
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday said that the revenue collection in March 2022 registered a growth of over 20 per cent despite political uncertainties and import compression.
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IBA IStockX trading competition launched
KARACHI: IStockX is one of Pakistan’s leading virtual trading competitions has been launched. The competition has been organized by IBA Finance Club to enhance capital market inclusion and investor education.
This year, Pakistan’s leading broker Topline Securities and fastest growing Fintech Platform, Investors Lounge, joined hands to provide world-class trading and research experience to students during the competition.
The competition, launched today at IBA Main Campus, will be held for one month on Investors Lounge Platform. The winners will also get the chance to earn prizes, sponsored by Topline; and paid internships with sponsoring organizations.
READ MORE: SBP governor visits Central Depository Company
Mohammed Sohail CEO and Founder on Topline at the launch of this League said that Topline always believe in imparting knowledge to the students and investment community.
”This will provide IBA students an opportunity to learn how to select a company and when to buy and sell stocks,” he said.
According to him with everything going digital this competition on online platform will go a long way in increasing investor base in Pakistan.
READ MORE: PSX announces top 25 companies for year 2020
Addressing the launch event, Baqar Jafri, CEO of Investors Lounge said: “Our mission is to democratize investment literacy in Pakistan and educate 1 million new investors about capital markets. Topline Securities shares the same vision.
Together, with our partners, we are all set to bring investor education revolution in Pakistan.”
Sunny Kumar of Topline Securities explained that Topline is always available to provide service and training to IBA students. He also said that after this Competition another phase will be launched where Top Performing Students will actually invest funds at PSX and win prizes
Investors Lounge is giving 1000 scholarships on the platform during the competition.