Author: Mrs. Anjum Shahnawaz

FBR, PTA introduce temporary registration of cell phones

ISLAMABAD: Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) have jointly introduced a temporary registration of cell phones to facilitate overseas Pakistanis.

To address the repeated concerns raised by Overseas Pakistanis (including those working abroad or Pakistani students studying overseas) and foreign nationals visiting Pakistan on short term visits regarding blocking of their mobile devices via DIRBS, FBR and PTA have jointly developed a new system for their temporary registration in collaboration with Federal Investigation Agency (FIA) and Mobile Phone Operators, a statement said on Tuesday.

READ MORE: PM Imran directs implementing incentives for IT industry

This module has been introduced for those overseas Pakistanis and foreign nationals who do not intend to keep their mobile device in Pakistan and will be applicable for only one (1) mobile handset device.

To avail this facility, the applicant shall provide his/her credentials including passport No., date of arrival and intended date of departure, mobile SIM issued in his/her name, and IMEI(s) of the device.

READ MORE: Ufone 4G ranked top voice and data network

The new system shall carry out real time validation from FIA IBMS to verify the date of arrival of the applicant. On lapse of 120 days of the stay of the applicant, the IMEI(s) utilized under this facilitation shall be suspended and swill not be utilized on local network services. In case, same applicant visits Pakistan again, he/she will be required to re-apply for this temporary facilitation, by re-entering the credentials which were used for the 1st or previous registration under this scheme.

This system will not only facilitate overseas Pakistanis and foreign nationals coming to Pakistan on short term basis but will also create a positive image of the country. Likewise, the checks introduced under this system will ensure that only the genuine overseas Pakistani/foreign national avails the said facility.

READ MORE: Supernet wins ZTBL projects worth Rs450 million

It is pertinent to mention that FBR has already introduced a number of innovative digital interventions to ensure taxpayers facilitation and ease of doing business through technology. In the recent past, the country’s premier revenue collection organisation has collaborated with FIA and NADRA in developing an automated facility for Currency Declaration at ports to fight the menace of money laundering and thereby rule out the possible flight of foreign currency from Pakistan.

Therefore, the above initiative comes as yet another wonderful step taken by FBR to maximize taxpayers facilitation, in particular, the Overseas Pakistanis and Foreign Nationals visiting Pakistan for a short period of time.

READ MORE: PM Imran announces setting up technology startup fund

March 8, 2022
ECC approves Ramzan relief package worth Rs8.28 bn

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a Relief Package worth Rs8.28 billion to provide essential items at subsidized rates during the holy month of Ramzan.

The ECC approved a summary tabled by Ministry of Industries and Production for Ramzan Relief Package 2022.

The ECC after discussion approved Ramzan Relief Package 2022 for 19 essential items to be sold at subsidized rates at Utility Stores Corporation (USC) with total subsidy of Rs. 8.28 billion.

READ MORE: PM Imran reduces, freezes POL prices

Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting.

Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Railways Muhammad Azam Khan Swati, Federal Minister for Energy Hammad Azhar, Federal Secretaries and senior officers attended the meeting.

ECC approved Kamyab Overseas Programme (KOP) as a new component of Kamyab Pakistan Programme. The new initiative is meant for prospective low income overseas workers having confirmed foreign job offer, employment agreement and valid travel documents and registered with NSER to avail interest free loans under KPP.

READ MORE: PM Imran announces setting up technology startup fund

Maximum amount of loan would be Rs. 300,000 and returned in easy installments starting after three months of departure. The loan will be provided to 10,180 beneficiaries with estimated required funds of Rs. 3 billion for the 4th quarter of 2021-2022.

ECC considered and approved a summary presented by Ministry of Commerce on proposed amendments in the import and export policy order 2020 for the development of Integrated Tariff Management System (ITMS) for Pakistan Single Window (PSW).

Ministry of Energy (Petroleum Division) submitted a summary for allocation of Gas from Togh Field on commercial basis.

The ECC after discussion allowed up to 16 MMCFD gas from Togh Field to SNGPL on commercial basis. The wellhead price of the gas will be decided by the concerned regulator under the applicable rules and policy. Ministry of Energy (Petroleum Division) submitted a summary to allow amending the Petroleum Concession Agreement, allowing GHPL Assignment of Working interest in Wali, Jandaran West, Saruna and Pesu block of OGDCL.

The ECC approved to amend the respective Petroleum Concession Agreements by allowing GHPL to increase its Working Interest above its statutory Working Interest of 2.5 per cent being state participator in Wali, Jandran West,Saruna and Pesu blocks of OGDCL.

Ministry of Energy (Power Division) submitted a summary on incentive package announced by the Prime Minister regarding reduction in price of electricity.

The ECC considered and approved PM’s relief package of Rs. 5 per unit by way of reduction in electricity charges base rate for the relief period of four months (March 2022 to June 2022).

The relief package will be applicable to all commercial and domestic non- ToU consumers having monthly consumption up to 700 units, excluding life-line consumers.

The cash flow requirement for the PM Relief Package is Rs. 136 billion. Ministry of Energy (Petroleum Division) submitted another summary on reimbursement of price differential claims of oil marketing companies (OMCs) and refineries, in line with PM relief package of reduction in the consumer prices of Motor Spirit and Diesel by Rs. 10 per litre. The price differential would be paid to the Oil Marketing Companies/ Refineries by the Government as a subsidy to avert any shortage in the market.

The ECC approved special PDC disbursement mechanism to pay the PDC speedily within 15 days, opening of special assignment account with PSO and initial amount of Rs20 billion to PSO in accordance with the mechanism.

The ECC also considered and approved following Technical Supplementary/ Supplementary Grants:

i. Rs. 428.90 million to Foreign Affairs Division to meet the expenditure for holding of 48th session of the OIC Council of Foreign Ministers to be held in Islamabad on 22-23 March, 2022.

ii. Rs. 47.561 million to poverty Alleviation and Social Safety Division.

iii. Rs. 135.078 billion for principal and interest payments against Naya Pakistan Certificates and Islamic Naya Pakistan Certificates.

March 7, 2022
FBR allows 20-year old house value to open plot

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the value of immovable property constructed more than 20 years equal to the value of open plot.

According to property valuation for Karachi issued through SRO 345(I)/2022, the FBR issued a fresh property valuation for the residential and open plots located in various parts of the city.

READ MORE: FBR re-notifies valuation of immovable properties

The property registrar of the provincial government will collect withholding tax on the behalf of the FBR on the basis of property valuation fixed by the federal tax authority.

The FBR allowed reduction in valuation of properties on the basis of age of the built up structure.

It said that the value of residential built up property (including basement and first floor) is allowed to be reduced according to the following criteria:

01. Age of built up structure up to five years: no reduction is allowed in value.

02. Age of built up structure between five to 10 years: five per cent has been allowed as reduction in value.

03. Age of built up structure between 10 to 15 years: 7.5 per cent has been allowed as reduction in value.

04. Age of built up structure between 15 to 20 years: 10 per cent has been allowed as reduction in value.

05. Age of built up structure more than 20 years: the value shall be equal to an open plot.

The FBR further allowed reduction in value of built up properties (flats and apartments) according to following criteria:

01. Age of built up structure up to five years: no reduction will be allowed in value.

02. Age of built up structure between five to 10 years: 10 per cent has been allowed as reduction in value.

03. Age of built up structure between 10 to 20 years: 20 per cent has been allowed as reduction in value.

04. Age of built up structure between 20 to 30 years: 30 per cent has been allowed as reduction in value.

05. Age of built up structure more than 30 years: 50 per cent has been allowed as reduction in value.

The FBR also allowed reduction in value of commercial built up property according to the following criteria:

01. Age of built up structure up to 10 years: no reduction is allowed.

02. Age of built up structure between 10 to 15 years: 5 per cent has been allowed as reduction in value.

03. Age of built up structure between 15 to 20 years: 8 per cent has been allowed as reduction in value.

04. Age of built up structure more than 20 years: 10 per cent has been allowed as reduction in value.

The FBR said that the value of Commercial Plots of Defence Housing Authority facing Khayaban is increased by 10 per cent.

The value of commercial built up excluding ground floor has been reduced by 25 per cent.

The value of Residential Plots (Defence Housing Authority) of following categories may be decreased by 25 per cent:-

01. Nala facing plot

02. Commercial facing plot

03. School facing, mosque facing plot/Graveyard facing plot.

04. Rear plot (Back Side plot)/Triangle plot

For further details download new FBR’s property valuation for Karachi city.

March 7, 2022

FBR re-notifies valuation of immovable properties

ISLAMABAD: The Federal Board of Revenue (FBR) has re-notified fresh and revised valuation of immovable properties.

The FBR on March 02, 2022 issued re-notified the valuation tables of immovable properties for major cities of the country.

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 revenue body decision to defer the implementation came after several complaints received by the FBR those were pertaining to high valuation in the new tables.

The complaints were lodged by stakeholders including real estate agents and town developers, who pointed out extraordinary rise in property rates in the latest valuation tables.

The FBR issued detailed instructions to the tax offices on the procedure to be adopted to review the anomalies in the property rates and rationalize the same.

Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.

The FBR asked all the Chief Commissioners Inland Revenue (CCIRs) to constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021.

Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. Chief Commissioners will undertake consultative process with the stakeholders and engage SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.

To issue the fresh and revised valuation tables, the FBR exercised its powers vested in the Income Tax Ordinance, 2001. The aim was to bring the FBR values at par with the fair market values.

However, certain objections from stakeholders highlighted anomalies and aberrations in the newly notified valuation tables. Although, the notified valuations have been arrived at by FBR Field Formations through a rigorous consultative process and wherefore have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.

Following are the valuation tables re-notified by the FBR:

PM Imran directs implementing incentives for IT industry

ISLAMABAD: Prime Minister Imran Khan on Friday directed the authorities to timely implement incentives for freelancers and IT industry as announced by the government.

The prime minister, chairing a meeting to review the incentives being provided to the IT sector, said the government was extending maximum facilitation to the sectors with immense potential to support the national economy.

READ MORE: PM Imran reduces, freezes POL prices

Mentioning the historic package announced by the government for promotion of the IT sector, he said the government had introduced massive reforms to facilitate the business sector.

He viewed that the facilitation of the skilled freelancers would lead to increasing the remittances as promotion of the IT exports was among the government’s priorities.

The participants of the meeting were apprised of the implementation status of the incentives for the startups, industrial sector and IT companies.

READ MORE: PM Imran announces setting up technology startup fund

It was told the implementation of the government’s recently announced industries and IT package was going on with fast pace and an increase in the number of freelancers had been witnessed consequent to the government’s measures.

The meeting was told that the one-step registration of freelancers through the portal of Pakistan Software Export Board had been ensured which would automatically register them with the Federal Board of Revenue.

READ MORE: Tax reduced on POL products to ease inflation: PM Imran

Moreover, the State Bank of Pakistan was also taking steps to ensure the transfer of freelancing funds from abroad through the banking channels. Besides, a mechanism to take benefit from the tax exemptions for the IT companies would also be in place very soon.

An awareness system to ensure the implementation of the announced facilities through commercial banks would also be initiated.

READ MORE: PM Imran launches 2nd phase of Raast payment system

Federal ministers Asad Umar, Hammad Azhar, Chairman of Special Technology Zones Authority Amer Hashmi, and senior officers attended the meeting. Governor of State Bank Raza Baqir joined via video link.

March 5, 2022
Pakistan, Saudi Fund sign debt service suspension pacts

ISLAMABAD: Pakistan and Saudi Fund for Development (SFD) have signed debt service suspension agreements amounting $846 million, a statement said on Thursday.

The agreements have been signed under the G-20 Debt Service Suspension Initiative (DSSI) Framework.

Nawaf bin Saeed Al-Malkiy, Ambassador of the Kingdom of Saudi Arabia to Pakistan witnessed the signing ceremony held in Islamabad.

READ MORE: SBP signs $3bn deposit agreement with Saudi Fund

Dr. Saud Ayid R. Alshammari, Director General for Asia represented the SFD in the signing ceremony.

This amount which was due to be paid during the testing period from May 2020 to December 2021 will now be repaid over a period of six years starting from 2022 in semi-annual installments.

READ MORE: Saudi oil facility for Pakistan to start soon

Due to the support extended by the Saudi Fund for Development – one of the major bilateral development partners of Pakistan – along with other bilateral creditor countries, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and socioeconomic needs of the Islamic Republic of Pakistan.

The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, is $ 3,688 million.

READ MORE: KSA extends oil on deferred payments to Pakistan

Pakistan has already concluded and signed 80 agreements with 21 bilateral creditors for the rescheduling of its debts under the G-20 DSSI framework, amounting to rescheduling of $ 2,088 million.

The signing of agreements with the Saudi Fund for Development brings the total rescheduled amount to $ 2,934 million while negotiations for the remaining $ 754 million are underway.

The agreements for this amount are expected to be signed with respective bilateral development partners within the current fiscal year.

READ MORE: PM Imran thanks Saudi assistance; dollar retreats

March 4, 2022
FBR identifies 1,421 retailers for tax integration

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued a list of 1,421 retailers for mandatory integration with online tax system.

The FBR directed the retailers to integrate with the online tax system by March 10, 2022 in order to avoid harsh action.

The revenue board issued Sales Tax General Order No. 10 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 No. 10 of 2022, a list of 1,421 identified Tier-1 retailers has been issued allowing them to integrate with FBR’s system by March 10, 2022 and the procedure of exclusion from the list of 1,421 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

March 3, 2022
Ufone 4G ranked top voice and data network

ISLAMABAD: Pakistan Telecommunication Authority (PTA) has declared Ufone 4G as No. 1 voice and data network in the country.

The PTA declared ranked top Ufone 4G in its ‘Mobile Networks Benchmark Report for 2022’.

PTA used Network Performance Score (NPS) methodology to ascertain service quality across the country. The integrated innovative methodology, standardized by European Telecommunications Standards Institute (ETSI) allows regulators to assess network performances through automated tests of simulated Voice, Data and SMS usage behaviors of end users.

READ MORE: Ufone signs Rs21 billion agreement for 4G spectrum

The report reaffirms the company’s strong focus on delivering the highest quality connectivity to its customers to enhance their user experience. Ufone 4G topped the nationwide benchmarking campaign, where the company’s Voice and Data services scored the highest aggregate total of 634 out of 800.

The study was held across all federal and provincial capitals including four towns, along with four major motorways & highways to ascertain the quality of mobile networks. PTA survey teams made more than 15 thousand Voice calls and conducted 45 thousand Data tests across an area of approximately 4,522 kilometers in length at these locations.

Ufone 4G achieved highest scores for its Voice and Data services, with a significantly higher margin against the industry benchmarks and other Cellular Mobile Operators (CMOs) in Pakistan. The Pakistani telecom company demonstrated the best call setup performance and the strongest data network across all cities and towns surveyed by the regulator.

READ MORE: Ufone launches contact center for housing loans

The steady improvement in the Ufone 4G’s network quality and coverage was witnessed following its acquisition of 4G spectrum and investment in enhancing and modernizing its network in line with its long-term commitment to improve the user experience of its customers.

It is the second survey by PTA in a year. The regulator carries out telecom benchmarking campaigns from time to time to assess network quality and performance as well as to spur healthy competition in the industry, thereby encouraging delivery of quality service to telecom users.

PTA’s latest ranking reaffirms Ufone 4G’s long term endeavor to transform the way customers experience telecom services. To that end, the company acquired 4G spectrum and continues to innovate and modernize its network to deliver the best Voice and Data experience to the users because users remain at the heart of everything Ufone 4G ever undertakes, as is evident from its cherished brand slogan, Tum He Tou Ho!

March 3, 2022
Tax amnesty launched for setting up new industrial units

ISLAMABAD: The federal government on Thursday launched a tax amnesty scheme for setting up new industrial units. The amnesty scheme has been introduced through a presidential ordinance.

Under the amnesty scheme, the Federal Board of Revenue (FBR) will not ask the source of funds to be utilized for setting up the new industrial undertaking. However, five per cent tax shall be levied for whitening the money.

READ MORE: FBR issues new list of active taxpayers

According to the Income Tax (Amendment) Ordinance, 2022, any eligible person may file a statement by September 30, 2022, declaring the amount of funds (which have not been declared in any of the returns of income up to tax year 2021 filed by December 31, 2021) for investment in a new company formed for establishing and operating an industrial undertaking in accordance with this section.

The funds shall be deposited in rupees in a dedicated bank account in Pakistan as equity of the newly formed company, incorporated under the Companies Act, 2017 (XIX of 2017), before the filing of the statement and such funds shall only be used for purchase or import of plant and machinery through letter of credit or for construction of building and structure for the industrial undertaking.

READ MORE; FBR launches new Active Taxpayers List; return filing grows by 58%

The minimum amount which would qualify for the purposes of this section shall be fifty million rupees.

The provisions of section 111 of the Income Tax Ordinance, 2001 (related to undisclosed income) shall not apply to the funds declared subject to fulfilment of conditions as laid down in this section and payment of an amount equal to five percent thereof along with the statement filed.

The new industrial undertaking in which such investment is made shall commence commercial production by the June 30, 2024 and a certificate to that effect, duly issued by Engineering Development Board, is submitted to the Commissioner along with the return filed for tax year 2024.

READ MORE: POS invoice verification for prize scheme surges by 63%

Any amount of tax paid under this section shall not be refundable or adjustable against any other tax liability of the declarant.

Where a declarant has paid tax under this section in respect of funds declared under sub-section (1), the declarant shall be entitled to incorporate the same in his wealth statement, financial statements or books of accounts, as the case may be.

READ MORE: Sales tax exempted on all petroleum products

For the purposes of this section, eligible person means all persons, except-

(a)          holders of public office, their spouses and dependent children;

(b)          a public company as defined in clause (47) of section 2 of this Ordinance;

(c)           a person who has filed a declaration under the Voluntary Declaration of Domestic Assets Act, 2018, the Foreign Assets (Declaration and Repatriation) Act, 2018, or the Assets Declaration Act, 2019;

(d)          a person that has been declared a bank loan defaulter by a bank or a financial institution within the last three years; or

READ MORE: FBR registration made mandatory for housing projects

(e)          a director of a company who has been declared a bank loan defaulter by a bank or a financial institution within the last three years.

(7)          The provisions of this section shall not apply to —

(a)          any proceeds of crime, corruption, money laundering and terror financing;

(b)          any amount which is subject of any departmental or court proceedings;

(c)           the investments made in following sectors, namely:–

(i)            arms and ammunitions;

(ii)           explosives;

(iii)          sugar;

(iv)         cigarettes;

(v)          aerated beverages;

(vi)         flour mills;

(vii)        vegetable ghee; and

(viii)       cooking oil manufacturing excluding extraction units.

March 3, 2022
Pakistan’s trade deficit widens to $32 billion in 8MFY22

ISLAMABAD: Pakistan’s trade deficit has widened to around $32 billion in first eight months (July – February) 2021/2022 8MFY22, according to official data released on Wednesday.

The trade deficit widened by 82.26 per cent during the period under review as compared with the deficit of $17.53 billion in the corresponding period of the last fiscal year, showed the data released by Pakistan Bureau of Statistics (PBS).

READ MORE: Pakistan’s trade deficit widens by 92% in seven months

The country’s exports registered an increase of 26 per cent to $20.55 billion during first eight months of the current fiscal year as compared with $16.32 billion in the same period of the last fiscal year.

The import bill surged by 55 per cent to $52.5 billion during July – February 2021/2022 as compared with $33.86 billion in the corresponding period of the last fiscal year.

READ MORE: Pakistan’s trade deficit swells by 100% in 1HFY22

The trade deficit ballooned by 22 per cent to $3.1 billion in February 2022 as compared with the deficit of $2.53 billion in the same month of the last year.

The exports during the month of February 2022 recorded a sharp increase of 36 per cent to $2.81 billion as compared with $2.07 billion in the same month of the last year.

READ MORE: Pakistan’s trade deficit widens by 112% to $20.59 billion

The import bill registered an increase of 28.3 per cent to $5.9 billion in February 2022 as compared with $4.6 billion in the same month of the last year.

READ MORE: Pakistan’s import bill surges by 65% in four months

March 2, 2022