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Author: Mrs. Anjum Shahnawaz

  • PM Imran invites Chinese companies to invest in Pakistan

    PM Imran invites Chinese companies to invest in Pakistan

    BEIJING (China): Prime Minister Imran Khan on Friday invited Chinese companies to invest in Pakistan and take benefit from the business-friendly policies of the government.

    The prime minister, who held a series of meetings with the executives of Chinese State-owned and private corporate sectors, said Pakistan was offering conducive environment for investment in Special Economic Zones (SEZs) under the China Pakistan Economic Corridor (CPEC).

    READ MORE: Prime Minister Imran kicks off visit to China

    In his remarks, the prime minister appreciated the keen interest of the Chinese companies to invest in Pakistan.

    The executives who met the prime minister included leadership of China Communication Construction Company (CCCC), Huazhong Technology, Zhejiang Seaport Group, Challenge Apparel, Hunan Sunwalk Group, Royal Group, China Road and Bridge Corporation (CRBC), Zhengbang Group and China Machinery Engineering Corporation (CMEC).

    READ MORE: PM Imran terms exports, tax collection must for growth

    The corporate leaders briefed the prime minister on the progress of their on-going projects in Pakistan.

    They evinced keen interest in expanding investments in Pakistan in projects related to recycling of metals and paper, energy, textile, fibre-optics networks, housing, dairy and water management.

    READ MORE: Timelines for CPEC projects should be adhered to: PM

    The CCCC is a leading global construction and infrastructure development company; Huazhong Technology, specialises in integrated papermaking equipment; Zhejiang Seaport Group is one of China’s largest port operator; Challenge Fashions is a leading textile company; Hunan Sunwalk’s core business is in communications, 3D printing and construction; Royal Group is China’s largest buffalo milk producer; CRBC focuses in civil engineering and construction projects; Zhengbang Group is Jiangxi Province’s largest agricultural enterprise; and CMEC is one of Chinese top agro-industrial machinery company.

    The prime minister was joined in the meetings by federal ministers, advisers and senior officials.

    READ MORE: Work on CPEC projects in full swing: Asad Umar

  • FBR invites Sales Tax proposals for budget 2022/2023

    FBR invites Sales Tax proposals for budget 2022/2023

    In preparation for the upcoming fiscal year’s budget, the Federal Board of Revenue (FBR) has issued a call for sales tax and federal excise duty (FED) proposals.

    (more…)
  • Saudi oil facility for Pakistan to start soon

    Saudi oil facility for Pakistan to start soon

    ISLAMABAD: Saudi Arabia to operationalize soon the oil facility to Pakistan, it was agreed at a meeting on Thursday.

    Ambassador of the Kingdom of Saudi Arabia in Islamabad Nawaf bin Saeed Al-Malkiy called on the Federal Minister for Economic Affairs Omar Ayub Khan in his office on Thursday.

    READ MORE: KSA extends oil on deferred payments to Pakistan

    During the meeting, it was agreed to operationalize the Saudi Oil Facility at the earliest.

    The Financing Agreement worth $ 1.2 billion for import for petroleum products was signed on November 29, 2021 between the Saudi Fund for Development (SFD) and Economic Affairs Division (EAD), Pakistan.

    As per Financing Agreement, the SFD will extend financing facility up to $100 million per month for one-year for purchase of petroleum products on deferred payment basis.

    Both the sides discussed ongoing development projects and new initiatives.

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

    The Minister for Economic Affairs appreciated the Saudi support in the priority development areas, said a press release received here today.

    They also discussed the remaining work of development projects in the earthquake affected areas of Azad Jammu & Kashmir (AJK) and Khyber Pakhtunkhwa (KP).

    Saudi Fund for Development (SFD) is providing financial assistance for various development projects in the areas of Energy, Health, Education and Infrastructure.

    Most recently, the SFD has committed to provide financing for Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Gravity Flow Water Scheme Mansehra, and Abbottabad- Muzaffarabad Road Project.

    The Saudi Ambassador assured of continued support at all level to further strengthen the bilateral economic cooperation between the two brotherly countries.

    The Saudi Ambassador expressed that the Kingdom of Saudi Arabia is committed to play a much stronger role in the socioeconomic development of Pakistan.

  • Prime Minister Imran kicks off visit to China

    Prime Minister Imran kicks off visit to China

    ISLAMABAD: Prime Minister Imran Khan on Thursday kicked off a four-day visit to China. Prime Minister Imran will attend the ceremony of Winter Olympics and meet the Chinese leadership.

    The prime minister’s delegation included Foreign Minister Shah Mahmood Qureshi, Finance Minister Shaukat Tarin, Planning Minister Asad Umar, Information Minister Chaudhry Fawad Hussain, National Security Adviser Dr Moeed Yousaf, Commerce Adviser Abdul Razak Dawood and Special Assistant on China Pakistan Economic Corridor Khalid Mansoor.

    READ MORE: PM Imran terms exports, tax collection must for growth

    The prime minister besides attending the ceremony of Beijing Winter Olympics will meet President Xi Jinping and Premier Li Keqiang.

    Prior to departure, the accompanying ministers termed the prime minister’s visit to China of great significance.

    Foreign Minister Shah Mahmood Qureshi said PM Khan’s meeting with the Chinese leadership would focus on bilateral strategic partnership, regional matters, and peace and security in South Asia.

    READ MORE: PM Imran Khan announces food subsidy package

    Finance Minister Shaukat Tarin said the prime minister during the visit would propose the Chinese leadership to relocate their industry in Pakistan’s Special Economic Zones for a win-win situation besides extending assistance in agriculture.

    National Security Adviser Dr Moeed Yousaf said the visit would provide an opportunity to discuss ways to improve peace in Afghanistan to end terrorism.

    READ MORE: PM Imran launches landmark Karachi BRTS project

    Commerce Adviser Dawood said the meetings would the Chinese counterparts would focus on some areas of Free Trade Agreement and trade of cement, rice, fruit and vegetables.

    During the visit of PM Khan, a book titled ‘China Pakistan Economic Corridor – Investment Opportunities in Pakistan’ will be presented to the Chinese president, premier and investors.

  • IMF board approves $1.059 billion tranche for Pakistan

    IMF board approves $1.059 billion tranche for Pakistan

    ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) on Wednesday approved sixth tranche under $6 billion Extended Fund Facility (EFF) for Pakistan.

    Finance Minister Shaukat Tarin announced this in a Tweet. “I am pleased to announce that IMF Board has approved 6th tranche of their program for Pakistan.”

    https://twitter.com/shaukat_tarin/status/1488928059562545159

    Pakistan will get around $1.059 billion after the IMF Board approval. The IMF on November 21, 2021 stated that its staff had completed the sixth review and the release of next tranche was subject to approval from the executive board, which was to be scheduled to meet on January 12, 2021.

    READ MORE: IMF wants Pakistan to improve tax to GDP ratio to 20%

    The IMF also linked the approval of the next tranche with certain conditions, including autonomy of State Bank of Pakistan (SBP) and withdrawal of tax exemptions to the tune of around Rs350 billion.

    READ MORE: Pakistan to emerge as food surplus country: PM Imran

    Pakistan had requested to extend the date for scheduled meeting of the IMF board up to January 28, 2022 and later it was further requested to extend up to February 02, 2022.

    READ MORE: IMF intervention to add economic miseries of Pakistan

    In meantime, the government presented and got approval the Finance (Supplementary) Act, 2022 and SBP Amendment Act to comply with the conditions of the IMF.

    Analysts said that the transfer of latest IMF tranche would help the country to improve foreign exchange reserves besides it would also support the Pak Rupee (PKR).

    READ MORE: SBP responds to misconceptions on amendments to State Bank Bill

  • Pakistan’s trade deficit widens by 92% in seven months

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

    ISLAMABAD: Pakistan’s trade deficit has widened by 92 per cent during first seven months (July – January) of fiscal year 2021/2022, official statistics revealed on Wednesday.

    The trade deficit ballooned to $28.8 billion during the first seven months of the current fiscal year as compared with $15 billion in the corresponding months of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

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

    The exports exhibited a growth of 24 per cent to $17.67 billion during the period under review as compared with $14.25 billion in the same period of the last fiscal year.

    Meanwhile, the import bill of the country surged by 59 per cent to $46.47 billion during first seven months of the current fiscal year as compared with $29.25 billion in the corresponding months of the last fiscal year.

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

    The trade deficit widened by 26.49 per cent to $3.36 billion in the month of January 2022 as compared with the deficit of $2.66 billion in the same month of the last year.

    The exports increased by 18.69 per cent to $2.55 billion in January 2022 as compared with $2.145 billion in the same month of the last year.

    Similarly, the imports grew by 23 per cent to $5.9 billion in the month of January 2022 as compared with $4.8 billion in the same month of the last year.

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

    However, imports registered a massive decline of 22 per cent to $5.9 billion in January 2022 as compared with $7.58 billion in the month of December 2021.

    Similarly, exports fell by 8 per cent to $2.54 billion in January 2022 as compared with $2.76 billion in the previous month.

    The trade deficit recorded a decline of 30 per cent to $3.36 billion in January 2022 as compared with the deficit of $4.81 billion in December 2021.

    READ MORE: Pakistan’s trade deficit doubles in first quarter

  • FBR postpones new property valuation till February 28

    FBR postpones new property valuation till February 28

    ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday postponed the implementation of new and revised valuation of immovable properties till February 28, 2022.

    The FBR said that new and revised valuation tables of immovable properties issued on December 01, 2021 would remain in abeyance till February 28, 2022 and those valuation tables would be re-notified on March 01, 2022.

    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 on December 01, 2021 issued fresh and upward revised valuation tables for immovable properties located in 40 major cities of the country.

    READ MORE: FBR issues new, revised tables of property valuation

    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.

    READ MORE: FBR’s new, old valuation tables for Karachi properties

    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.

    The VRCs shall decide upon the representations by January 10, 2022, and forward the same to FBR for notification. All recommendations made by VRCs vis-à-vis revaluations shall be re-notified on January 15, 2022, which shall come into force on January 16, 2022. In the meantime, SRO No.1534-1572(I)/2021 dated 01.12.2021 are held in abeyance to allow registration of the in-process transactions.

  • FBR explains amendments to Customs Act 1969

    FBR explains amendments to Customs Act 1969

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued explanation of amendments in the Customs Act, 1969 made through Finance (Supplementary) Act, 2022.

    The FBR issued Customs Circular No. 01 of 2022 to explain the changes.

    Power to determine the customs value:

    Under Section 25A of the Customs Act, 1969, both the Collector of Customs and the Director Valuation were authorized to determine the Customs Value of imported or exported goods on his own motion or on a reference made to him by any person after following the methods laid down in Section 25 of the Customs Act 1969. However, in order to being uniformity, the role of Collector of Customs has been omitted and now the powers under section 25A have been entrusted with the respective Director of Customs Valuation to bring standardization in the process of fixation of values of goods.

    READ MORE: PTBA demands date extension for filing sales tax return

    Review of the value determined:

    The post of Member Customs (Policy) and the Director General of Customs Valuation are both administrative in nature. Therefore, on the principle of natural justice, amendment has been made in section 25D so that appeal against the decision of DG valuation should not lie before the Member Customs (Policy) and should be taken up at judicial fora to redress the grievances.

    READ MORE: All shopkeepers to install POS machines: CTO Chief

    Checking of goods declaration by the Customs:

    Limiting the checking of goods declaration within three years of its clearance under Sub-section (1) of Section 83 of the Customs Act, 1969 is uncalled for as the time limit aspect has already been dealt under Section 32 of the Customs Act, 1969. Accordingly, section 80 has been amended.

    Provisional determination of liability:

    Corporate guarantee is the instrument in which the guarantor is the entity or the individual submitting the guarantee whereas in case of bank guarantee or pay order the issuing bank is the guarantor. In order to secure government revenue “Corporate Guarantee” has been omitted from section 81 of the Customs Act, 1969, retaining only bank guarantee and pay order for the purpose.

    READ MORE: FBR notifies transfers of BS-17-19 customs officers

    Appeals to the Appellate Tribunal:

    The powers of Member (Customs Policy) with regard to hearing of appeals against the decision/order of DG valuation has been withdrawn. Now, instead of filing appeal before the Member Customs (Policy) against the order/decision of DG Valuation, Section 194A has been amended so that the aggrieved party may file appeal before the Appellate Tribunal.

    Reference to High Court

    The amendment in this section 196 is the consequential effect of the amendment proposed in Section 25D of the Customs Act, 1969, whereby the powers of Member (Customs Policy) with regard to hearing of appeals against the decision/order of DG valuation have been omitted/withdrawn.

    READ MORE: FBR posts 30% growth to collect Rs3.35 trillion

  • Tarin launches automated currency declaration system

    Tarin launches automated currency declaration system

    ISLAMABAD: Finance Minister Shaukat Tarin launched automated currency declaration system at Federal Board of Revenue (FBR) Headquarter here on Tuesday.

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  • PTBA demands date extension for filing sales tax return

    PTBA demands date extension for filing sales tax return

    ISLAMABAD: Pakistan Tax Bar Association (PTBA) on Tuesday demanded the tax authorities to extend the last date for filing sales tax return for the month of December 2021 because taxpayers have failed to make compliance due to technical issues on the IRIS portal.

    The PTBA in a letter to the chairman of Federal Board of Revenue (FBR) informed about the glitches in filing the sales tax return or National Sales Tax Return and urged to extend the date for filing the monthly return for the period December 2021 up to February 15, 2022.

    READ MORE: FBR further extends date for filing sales tax return

    The actual cutoff date for filing sales tax return for December 2021 was January 18, 2021. However, due to problems on the national tax portal, the FBR extended the date twice; first extended up to January 24, 2022 and later it was further extended up to January 28, 2022.

    Rana Munir Hussain, President, PTBA in its letter to the FBR chairman appreciated the initiative of single sales tax return for all federal and provincial taxpayers. However, at the same time he pointed out some challenges pertaining to IRIS system, which are still creating difficulty/issues due to the newly introduced IRIS module.

    The PTBA received many request from its affiliated tax bars to take up the matter with FBR for extension in time for filing of Sales Tax Return for the Tax Period December-2021. All these written as well as verbal requests are revolving around the IRIS module technical issues, slow response of the system, errors and glitches on the part of FBR being faced by the taxpayers as well as professional/legal fraternity while filing Sales Tax Return through IRIS, without removing the pointed out inter alia, filing of correct sales tax returns is not possible, with the request to take up this matter on priority basis and matter in detail, is being discussed hereunder:

    Name of Person is appearing instead of business name, whereas a business is registered instead of person under the sales tax law, which is creating hardship to identify the person/business entity.

    Exclusion from 8B is not available where 80% sales of goods have been made under 3rd Schedule of the Sales Tax Act, 1990.

    Withholding Sales Tax (WHST) credit is not available.

    Revised return Tab is not available.

    Sales Tax Rate for vehicle below 1000CC @ 12.5% is not available.

    Registration Number editing facility is not available, which leads to deletion and re-entry of data/invoice.

    Sales tax return filed by the individual taxpayer, where entries have been made through NTN, input credit to buyer is not available, which is causing hardship to file the return. 

    Sales or purchase invoices are not in chronological order (invoice number & date), which is difficult task to verify/re-check/reconcile the shuffled data/invoices. 

    Figures are shown in decimal numbers, which creates confusion at the time of calculating liability or verify the data/invoices.

    Annexure-F is calculating double VAT (value Addition charged at import stage to commercial importer) or giving double credit of VAT, which will result into loss to National Exchequer.

    No effect of debit or credit note is allowing the IRIS system (sales return shall be reported in Annexure-C (reduction in sales/sales tax payable), whereas purchase return shall be reported in Annexure-A (reduction in purchase/input tax credit).

    Printing of return on three pages instead of one page (without annexures), a sheer wastage of national resources and loss of foreign exchange due to use of imported paper.

    Printing of return without annexures is useless.

    In the light of the aforesaid facts and legal exposition, the date of filing of Sales Tax Return for the Tax Period December-2021, the PTBA said, and demanded to extend the date up to 15th day of February 2022.

    READ MORE: KTBA highlights anomalies in single sales tax return