Dr. Muhammad Ashfaq Ahmed, the Chairman of the Federal Board of Revenue (FBR), has drawn attention to the United Arab Emirates (UAE) as a preferred destination for parking offshore undisclosed funds by Pakistan nationals.
(more…)Author: Mrs. Anjum Shahnawaz
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FBR explains cash discount under sales tax laws
ISLAMABAD: The Federal Board of Revenue (FBR) has explained cash discount related to invoices issued through Point of Sale (POS) by Tier-1 retailers.
The FBR explained through an official note dated March 17, 2022 that cash discount has been allowed in the form of reduction of prices in seasonal sales / sales and the consideration in money is received after cash discount has been allowed.
It is clarified that the value of supply for sales tax purpose is the actual value received in monetary terms excluding the amount of sales tax and not the gross value. “Hence, the sales tax will be calculated and charged on the actual or discounted price accordingly,” the FBR added.
The FBR previously issued clarification in this regard through the official order dated October 13, 2021 on the standardized format of the sales tax invoice notified through SRO 1006(I)/2021 dated August 09, 2021.
The revenue body said that representations from the taxpayers and bar councils were received seeking further clarification of the ‘trade discount’.
It said that value of supply as per section 2 (46) of the Sales Tax Act, 1990 in respect of taxable supply means the consideration in money which the supplier receives from the recipient for that supply but excluding the amount of tax.
In the previous explanation dated October 13, 2021, the FBR clarified that the discount if any to be given by a retailer has to be depicted on the invoice horizontally i.e. from left to right.
READ MORE: Trade discount should be displayed on invoice: FBR
“The captions such as total, sales tax, discount allowed appearing at the bottom of the invoice are standalone notations and do not necessarily add or subtract one another.”
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Pakistan stock brokers seek tax incentives
ISLAMABAD: Pakistan Stockbrokers Association on Wednesday proposed tax incentives on capital gain and investment in stock market.
Federal Minister for Finance and Revenue Shaukat Tarin held a meeting with a delegation of Pakistan Stockbrokers Association led by its Vice Chairman Zahid Latif Khan at Finance Division.
The delegation apprised the Finance Minister of certain issues and challenges impeding the growth of Capital market in Pakistan and sought support of government to resolve their issues.
They requested for providing tax incentives on Capital gain and investment in stock exchange.
Finance Minister Shaukat Tarin said that government is encouraging investment and enlisting of entities in the stock exchange.
He further assured the delegation his support to resolve their issues and for growth of Capital market in Pakistan.
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PIA commences flight operations to Azerbaijan
LAHORE: Pakistan International Airlines (PIA) – the national flag carrier – has commenced its flight operations to Baku, Azerbaijan from the country’s two major cities i.e. Lahore and Karachi, according to a statement issued on Wednesday.
The airline management under the guidance and leadership of CEO PIA, Air Marshal Arshad Malik is fulfilling the vision of Prime Minister of Pakistan to foster and promote brotherly ties with Central Asian Countries and also keeping in view the demand of passengers, to increase revenue and to facilitate passengers, has initiated flights to Baku, one of the emerging tourists destinations that offer ease of Visa facility, having friendly and welcoming people with same religion and lots of historic sites to visit both in Pakistan and Azerbaijan.
READ MORE: PIA incurs loss of Rs42.72 billion in nine months
The inaugural flights departed from the two cities on Wednesday morning. PIA will operate one flight per week from Lahore and Karachi to Baku. Simple Cake cutting ceremonies were held at Karachi and Lahore Airports. Both flights operated with full loads. CEO PIA also traveled on the first flight to Baku.
CEO PIA Air Marshal Arshad Malik welcomed the passengers of the first flight from Lahore. He met with the passengers and exchanged views with them. The passengers thanked CEO PIA Air Marshal Arshad Malik and the airline’s management for initiating direct non-stop flights to Baku.
READ MORE: PIA transports 5.9 million new batch of COVID vaccines
Sharing his views on the occasion, he said that the flights to Baku will not only facilitate in trade between the two countries but also promote tourism and further build upon brotherly relations between Pakistan and Azerbaijan.
CEO PIA thanked the passengers for making PIA their preferred choice for travel. He said that the airline’s network expansion is under way more flights will be added to the airline’s network including non- stop flights to Australia.
READ MORE: PIA shows 46% revenue decline in half year
Ambassador for Azerbaijan Khazar Farhdove also traveled on the inaugural flight from Lahore to Baku, while at Baku airport officials of Civil Aviation authority and senior Government officials welcomed the passengers.
The passengers of PIA’s flight to Baku from Karachi were welcomed and seen off by PIA senior officials.
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FBR amends fresh property valuations for Islamabad
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday made changes to property valuation tables for the capital city.
The FBR issued SRO 428(I)/2022 dated March 15, 2022 to a make amendment in the SRO 342(I)/2022 dated March 02, 2022.
Through the latest SRO the FBR withdrew the property valuation tables for DHA Phase 1 – 5 and DHA Valley for both residential and commercial plots.
READ MORE: FBR re-notifies valuation of immovable properties
The following entries in the valuation tables have been deleted for residential immovable properties:
62 DHA Phase 1 Any size 30,000 63 DHA Phase 2 Any size 35,000 64 DHA Phase 2 Extn Any size 8,264 65 DHA Phase 3 Any size 16,529 66 DHA Phase 4 Any size 9,917 67 DHA Phase 5 Any size 19,835 68 DHA Valley Any size 8,264 Similarly, following entries in the valuation tables have been deleted for commercial immovable properties:
171 DHA Phase 1 Commercial plot 23,900 172 DHA Phase 2 Commercial plot 22,200 173 DHA Phase 2 Extn Commercial plot 9,183 174 DHA Phase 3 Commercial plot 9,183 175 DHA Phase 4 Commercial plot 9,183 176 DHA Phase 5 Commercial plot 18,365 177 DHA Valley Commercial plot 2,755 The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022. The FBR once again deferred the implementation on the valuation table till February 28, 2022.
The revised tables of valuation of immovable properties have been issued and implemented on March 02, 2022.
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FBR announces winners of third POS invoice draw
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday announced winners of third 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 Nasreen Akhtar on the invoice issued by Save Mart.
READ MORE: FBR announces prize winners in second POS invoice balloting
The FBR announced winners of two second prizes of Rs500,000 each to Muhammad Sajid Aslam on the invoice issued by New Haji Super Store and Raheel Shahbaz on the invoice issued by Rahat Bakers.
Similarly, the four winners of third prize amounting Rs250,000 each are Muhammad Shahid ur Rehman, Shahbaz Ahmad, Gul Niaz Bibi and Furqan.
The FBR conduct computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was third 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.
READ MORE: FBR announces winners of first POS prize draw
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.
The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.
READ MORE: Prize scheme on invoices issued by retailers
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.
READ MORE: FBR launches prize scheme for POS customers
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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Bazarcha Border, Taftan declared Pakistan Customs Port
The Federal Board of Revenue (FBR) has officially declared Bazarcha Border Terminal, Taftan, as a Pakistan Customs Board for the efficient clearance of goods.
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ECC approves Ramzan Relief Package for all Pakistanis
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved Rs8.2 billion for Ramzan Relief Package for all Pakistanis.
Federal Minister for Finance and Revenue Shaukat Tarin presided over Economic Coordination Committee (ECC) of the Cabinet, on Tuesday.
Ministry of National Food Security & Research presented a summary for Ramzan Relief Package. The ECC approved in principle the Ramzan Relief Package -2022, involving subsidy of 8.2 billion for the whole population of the country rather than only 20 million households registered with Ehsaas Rashan Riyat Programme with directions to frame procedural mechanism for limiting the interventions by each family.
READ MORE: ECC approves Ramzan relief package worth Rs8.28 bn
Ministry of National Food Security & Research submitted a summary regarding intervention price for Cotton 2022-23 Crop. In order to revive cotton production in the country, bring stability in domestic market and assure fair return to the farmers, the ECC allowed Rs. 5,700/40 kg threshold intervention price of seed-cotton. The ECC further allowed to initially procuring two million bales of cotton at intervention price with direction that quantity would be reviewed on monthly basis.
Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Economic Affairs Omar Ayub Khan, Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar, Adviser to the Prime Minister on Commerce & Investment Abdul Razak Dawood, Federal Secretaries and senior officials participated in the meeting.
READ MORE: PM Imran reduces, freezes POL prices
Ministry of Economic Affairs submitted a summary on G-20 Debt Service Suspension Initiative (DSSI). The ECC allowed Ministry of Economic Affairs to sign 15 debt rescheduling agreements with various credit countries, finalized under Debt Service Suspension Initiative (DSSI).
ECC approved the proposal of Petroleum Division regarding issuance of sovereign guarantee amounting to Rs. 21,000 million in favour of M/s Faysal Bank Limited at considerably lower mark up rate for the remaining tenor of the loan i.e 4 and ½ years along with issuance of letter of comfort for new finance agreement w.r.t pipeline infrastructure development project LNG-II.
On a proposal of Petroleum Division for re-allocation of OGDCL’s Jhal Magsi gas to SSGCL, the ECC allowed reallocation of 15 MMCFD Jhal Magsi gas to SSGCL. SSGCL would carry out the project of gasification of Jhal Magsi town and would embark the required gas out of the proposed allocation. The injection of this gas will help mitigate SSGC’s gas demand-supply deficit.
READ MORE: PM Imran announces setting up technology startup fund
On a proposal of Petroleum Division for allocation of gas from Mari (Deep) gas reservoir to M/s SNGPL, the ECC approved in principle upto 110 MMCFD gas from Mari deep (Goru-B) gas reservoir allocation to SNGPL till 30-06-2024 on firm basis with direction for the determination of price mechanism of gas.
To address PSO and other Oil Marketing Companies (OMCs) concerns over mechanism of payment of Price Differential Claims (PDC), Petroleum Division submitted a summary on revised mechanism with the change to the previously approved mechanism that the PDC will be applicable on sale of petroleum products rather than on procurement of products. The ECC approved the proposal with allocation of additional Rs. 11.73 billion as supplementary grant to meet the expenditure on payment of PDC up to 31st March 2022.
ECC also approved Technical Supplementary Grant amounting to Rs. 200 million to Pakistan Military Accounts Department (PMAD) for conversion of Pensioners to Direct Credit System.
ECC also approved Technical Supplementary Grant of Rs. 3500 Million in favour of Higher Education Commission for the Project titled “Pak University of Engineering and Emerging Technologies (PUEET).
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Projects worth Rs8 bn launched for broadband services
ISLAMABAD: The Ministry of Information Technology and Telecommunication (MOITT) has launched seven more projects worth over Rs8 billion to provide broadband services to over 2.5 million people in the un-served and under-served areas of the four provinces.
Out of total amount for the projects around Rs 3.5 billion projects allocated for Balochistan, according to a statement issued on Monday.
The projects were approved here on Monday at the 81st meeting of the Board of Directors of the Universal Service Fund (USF), since then, the number of projects for providing optical fiber cable and broadband services from 2018 to date has reached a record 56 and the total cost (subsidy) has exceeded Rs 52 billion.
READ MORE: Telenor gets Rs1.36bn contract for broadband services
The meeting was chaired by Secretary IT & Telecom and Chairman USF Board Dr. Muhammad Sohail Rajput while Chairman PTA Major General (Retd) Amir Azeem Bajwa, Member Telecom Muhammad Umar Malik, CEO Telenor Irfan Wahab Khan, Imran Akhtar Shah, Kokab Iqbal, Sibte Hassan Gardezi and other officials were present.
Chief Executive Officer USF Haaris Mahmood Chaudhry gave a detailed briefing to the Board about the projects.
READ MORE: Jazz awarded project worth Rs344 million for providing broadband service
Federal Minister for Information Technology and Telecommunication Syed Amin-Ul-Haque, while congratulating the USF Board on the launch of the projects, said that whatever the political situation, the MOITT and its subsidiaries, especially the Universal Service Fund, continue to perform.
He said that Ministry of IT through USF is committed to connect the people in remote areas with digital world.
The minister said projects started during the tenure of present government are being ensured to complete in stipulated time. While for all the projects under the rules only the lowest bidding telecom operators were selected, he said.
Earlier addressing the meeting, Secretary IT and Chairman USF Board Dr. Muhammad Sohail Rajput said that the provision of broadband services to the residents of the un-served and under-served areas of the country is as much needed as for the big cities.
READ MORE: Telenor gets contract for providing broadband services
He said that while the implementation of projects for the four provinces has been ensured under the rules and regulations, the projects worth Rs 3.57 billion have been approved in principle, giving special importance to the deprived Balochistan.
Dr. Sohail Rajput further said that although the wide area of Balochistan and the provision of broadband services to the spread population is costlier than any other area, but the Board under the direction of Federal Minister for IT Syed Amin-Ul-Haque always included Balochistan in its priorities.
Meanwhile, according to the Projects approved at the USF Board of Directors meeting, the project to provide 4G services in Qila Saifullah and Zhob in Balochistan has been awarded to Pak Telecom Mobile Limited (Ufone) with total subsidy is Rs 3.57 billion while the completion period would be 18 months.
The project would facilitate to more than one hundred thousand populations of 111 villages spread over an area of 8,408 sq. km.
The plan to provide broadband services in Jhang, Bhakkar and Toba Tek Singh districts of Punjab has been given to Pakistan Mobile Company Limited (Jazz) on which the amount of subsidy given is Rs. 2.25 billion with one-year completion time.
READ MORE: Contracts worth Rs5.11 billion awarded for next generation broadband
In a short span of time, facilities will be provided to a population of over 1 million in 722 villages spread over an area of 8,925 sq. km. The meeting also approved the project of uninterrupted Voice and Broadband services on 95 km section of Hakla D.I Khan Motorway connecting Dera Ismail Khan, Lakki Marwat, Mianwali, Attock and Rawalpindi districts to Jazz at a subsidy of Rs 375.33 million.
Similarly, a plan to provide broadband service in six Mauzas on the outskirts of Islamabad has been handed over to Jazz at a cost of Rs. 11 million.
A project to provide mobile services in a Mauza of Mandi Bahauddin has also been handed over to Jazz at a cost of Rs. 22.6 million.
Under optical fiber cable (OFC) program, 555 km long fiber optical cable laying project in Larkana and Qambar Shahdad Kot districts of Sindh has been given to PTCL with total subsidy of Rs. 1.61 billion and completion period is one year.
By connecting the 62 union councils of these districts, it will be possible to provide high speed connectivity to the population of more than 1.2 million.
Another project under Optical Fiber Cable Program, PTCL was also given a project to lay 106 km long cable for a population of more than 136,000 in 6 Union Councils of Haripur and Islamabad out of total cost Rs. 410 million, the subsidy approved of Rs 235 million.
In addition, the USF Board of Directors has approved in principle the appointment of Ms. Alia Afridi from among the 3 shortlisted names after interviews of 37 candidates on the recommendations of the Human Resource Committee for the post of Company Secretary in the Universal Service Fund.
Ms. Alia Afridi has high academic qualifications and significant experience in the related field.
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State Life Insurance directed to pay claim to widow
ISLAMABAD: The President of Pakistan Dr. Arif Alvi has directed State Life Insurance Corporation of Pakistan (SLICP) to pay claim of Rs412,000 to a widow along with interest amount for unnecessary delay, statement said on Sunday.
Expressing displeasure over an unnecessary delay of seven years in the payment of life insurance claim to a widow, President Dr Arif Alvi directed the SLICP to pay the sum assured of Rs 412,000 as well as add inflation cost/interest to the accrued amount.
READ MORE: President Alvi orders State Life to pay death insurance
He further directed SLICP to apologize to the widow and change its financial system attitude and report compliance to Wafaqi Mohtasib within 30 days.
The President passed these orders while rejecting a representation of SLICP against a decision of the Wafaqi Mohtasib directing it to pay the claimants the assured amount without further delay.
READ MORE: President Alvi directs bank to refund unfair recovery
As per the details, the deceased Mr Zahid Altaf Bhatti had obtained two life insurance policies from SLICP (the Agency) on 06.07.2007 and 25.06.2010 for the sum assured of Rs 212,000 and Rs 200,000 respectively. He died on 20.03.2015 and his wife, Mst Fouzia Zahid Bhatti (the complainant), approached the Agency to pay the insurance claim but the latter refused to pay the sum on the ground that the deceased had pre-insurance ailments and was a patient of liver disease/hepatitis C.
READ MORE: President Alvi rejects FBR plea in maladministration cases
Feeling aggrieved, Mst Fouzia Zahid Bhatti filed a complaint with Wafaqi Mohtasib who directed SLICP to pay the amount and report compliance within 30 days.
Instead of implementing the orders of the Wafaqi Mohtasib, SLCIP filed a representation with the President against the decision of the Mohtasib. Rejecting the representation, President Dr Arif Alvi referred to section 80 of the Insurance Ordinance, 2000, which provides that an insurance policy cannot be called in question on the grounds of misrepresentation, false statement or suppression of material facts after two years from the date when the policy was originally effected.
READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer
In the present case, the policies were issued in 2007 and 2010, whereas the policyholder expired in 2015, thus, the policy could not be called into question. He further noted that the Agency had failed to substantiate its claim and no clinical investigation or diagnostic assessment had been produced to corroborate the existence of pre-insurance ailment.
The President further observed that the Confidential Report of the Field Officer had also declared the insured as healthy and categorically stated that he knew the deceased for the last 12 years.
READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case
The President underlined that ethical principles and compassion should not be ignored in the pursuit of making profits.
He stated that SLICP came out with frivolous excuses and delayed the payment in an unethical manner. The President advised the Agency to change its financial-system attitude and add inflation cost/interest to the accrued amount so that the beneficiary is not slighted because of pathetic delays.