KARACHI: Following are the rates of buying and selling of one Euro (EUR) in Pakistani Rupee (PKR) in the open market on January 03, 2022:
(more…)Author: Mrs. Anjum Shahnawaz
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Exchange rates: PKR to SAR on January 3, 2022
KARACHI: Following are the rates of buying and selling of one Saudi Riyal (SAR) in Pakistani Rupee (PKR) in the open market on January 3, 2022:
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Tax payment with return drops to Rs54 billion in FY21
ISLAMABAD: The voluntary payment along with annual income tax return has dropped to Rs54.09 billion during the fiscal year 2020/2021, according to official data made available to PkRevenue.com
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Pakistan’s trade deficit swells by 100% in 1HFY22
ISLAMABAD: Pakistan’s trade deficit has doubled to $24.8 billion during first half (July – December) of 2021/2022 1HFY22. The trade deficit was $12.36 billion in the same half of the last fiscal year.
The import bill of the country surged by 63 per cent to $40 billion during the first half of the current fiscal year as compared with $24.47 billion in the same half of the last fiscal year, according to data shared by Arif Habib Limited.
READ MORE: Pakistan’s trade deficit widens by 112% to $20.59 billion
The exports registered a growth of 25 per cent to $15.13 billion during first six months of the current fiscal year as compared with $12.11 billion in the corresponding months of the last fiscal year.
The trade deficit for the month of December 2021 contracted by 18 per cent to $4.14 billion as compared with $5.03 billion in November 2021.
READ MORE: Pakistan’s import bill surges by 65% in four months
Import bill of the country declined by 13 per cent to $6.9 billion in December 2021 as compared with $7.93 billion in November 2021. Meanwhile exports of the country also fell by five per cent to $2.76 billion in December 2021 as compared with $2.9 billion in November 2021.
READ MORE: Pakistan’s trade deficit doubles in first quarter
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New rates of FED on local, imported motor vehicles
ISLAMABAD: The federal government has proposed enhancement in federal excise duty (FED) on imported and locally assembled vehicles through mini-budget.
The government on December 30, 2021 presented Finance (Supplementary) Bill, 2021 to take tax measures to generate additional revenue for improve fiscal situation of the country. One of the major revenue measure is increasing the FED on imported and locally manufactured motor vehicles.
READ MORE: Mini-budget: FBR to generate Rs4.5bn through tax rate increase on cellular services
Sources said that the Federal Board of Revenue (FBR) had estimated to generate additional Rs6.5 billion through the changes.
According to the changes proposed, the FED on imported completely built unit (CBU) up to 1,000 CC the rate shall be unchanged at 2.5 per cent ad valorem.
READ MORE: Mini-budget: income tax rates proposed for foreign TV dramas
However, CBU imported vehicles between 1001CC to 1799CC the FED has been proposed to enhance to 10 per cent from 5 per cent.
Similarly, the CBU imported motor vehicles between 1800CC to 3000CC the FED has been increased to 30 per cent from 25 per cent.
Likewise, the motor vehicles above 3000CC, the FED has been enhanced to 40 per cent from 30 per cent.
READ MORE: Tax exemptions worth Rs343 billion withdrawn through mini-budget
The FED on locally manufactured motor vehicles has been kept unchanged at zero per cent for engine capacity up to 1000CC.
However, motor vehicles with engine capacity between 1000CC to 2000CC and exceeding 2000CC, the FED has been enhanced to 5 per cent from 2.5 per cent and enhanced to 10 per cent from 5 per cent, respectively.
The Federal Board of Revenue (FBR) said that the FED has been announced to increase to 30 per cent from existing rate of 25 per cent on import of double cabin (4X4) pick-up vehicles.
Similarly, the FED on locally manufactured double cabin (4X4) has been increased to 10 per cent from existing rate of 7.5 per cent.
READ MORE: Mini-budget: Advance tax on motor vehicles doubles
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Salt producers flay tax withdrawal through mini-budget
KARACHI: Ismail Suttar, Chairman, Salt Manufacturers Association of Pakistan (SMAP) has urged the government not to levy taxes on Iodized salt through mini-budget as the Covid-19 pandemic has already hit the salt export market badly due to rising freight costs and supply chain disruptions.
READ MORE: Mini-budget: FBR to generate Rs4.5bn through tax rate increase on cellular services
In a statement, he said: “If the government withdraws the exemption from Iodized salt, then it will create a huge impact on the cost of living of a common man as salt is the most essential ingredient in every single food item that a human consumes”.
SMAP Chairman further said that Salt is not only an essential food ingredient but has numerous health benefits especially the Iodized salt which creates hormones to regulate heart rate and blood pressure as well as burns extra fat deposits leading to heart diseases.
READ MORE: Mini-budget: income tax rates proposed for foreign TV dramas
“Previous governments have always promoted the use of Iodine in salt keeping in view the health of our children who are already suffering from stunted growth and obesity”, he said, adding that this ruthless decision to impose sales tax on such an essential item is beyond understanding and it only shows that the government seems to have no clue of its actions and is ready to meet the revenue targets even if it must compromise the common man’s health.
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Pak-Afghan 2nd round talks on DTA concludes
ISLAMABAD: Pakistan and Afghanistan have concluded the second round of talks on double taxation agreement (DTA).
According to a statement issued on Saturday said that Afghanistan Revenue Department (ARD) and Federal Board of Revenue (FBR) concluded second round of negotiations on Double Taxation Agreement (DTA) between Pakistan and Afghanistan.
READ MORE: Power of the Board and Commissioner to call for records
The four-member delegation of Afghanistan Revenue Department (ARD) were on visit to Pakistan, which commenced from December 27, 2021.
The inaugural session was presided over by Qaiser Iqbal, Director General (International Taxes), FBR who welcomed the delegates and hoped that the proposed DTA between the two brotherly countries would go a long way in fostering economic relationships and would also contribute to the development of both the countries.
The negotiations were conducted in the most cordial and friendly atmosphere. Both the delegations discussed all the outstanding issues of the first round of negotiations held in Islamabad from 28th to 30th March, 2016. Both the sides presented and appreciated each other’s respective positions.
However, it was agreed that the un-resolved issues would be discussed and finalized in the third round of negotiations to be held in Kabul, Afghanistan on mutually agreed dates.
The Afghan delegation was led by Esmatullah Salimi, Revenue Audit Director, ARD and included Abdul Wali Noori, Technical Deputy Director-General, ARD, Nida Mohammad Seddiqi, Legal Services Director, ARD and Najeebullah Ahmadzai, Advisor to MoF, while the Pakistan delegation was headed by Qaiser Iqbal, Director General (International Taxes), FBR and included Barrister Nowsherwan Khan, Chief (International Taxes) and Ms. Hira Nazir, Secretary (Tax Treaties & Conventions), FBR.
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Headline inflation rises by 12.3% in December 2021
ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 12.3 per cent on year-on-year basis in December 2021 as compared to an increase of 11.5 per cent in the previous month and 8.0 per cent in December 2020.
Pakistan Bureau of Statistics (PBS) on Saturday said that on month-on-month basis, it decreased by -0.02 per cent in December 2021 as compared to increase of 3.0 per cent in the previous month and a decrease of -0.7 per cent in December 2020.
READ MORE: Headline inflation surges by 11.5% in November 2021
CPI inflation Urban, increased by 12.7 per cent on year-on-year basis in December 2021 as compared to an increase of 12.0 per cent in the previous month and 7.0 per cent in December 2020. On month-on-month basis, it increased by 0.3 per cent in December 2021 as compared to increase of 2.9 per cent in the previous month and a decrease of -0.3 per cent in December 2020.
READ MORE: Headline inflation increases by 9.2% in October
CPI inflation Rural, increased by 11.6 per cent on year-on-year basis in December 2021 as compared to an increase of 10.9 per cent in the previous month and 9.5 per cent in December 2020. On month-on-month basis, it decreased by -0.5 per cent in December 2021 as compared to increase of 3.1 per cent in the previous month and a decrease of -1.2 per cent in December 2020.
Sensitive Price Indicator (SPI) inflation on YoY increased by 20.9 per cent in December 2021 as compared to an increase of 18.1 per cent a month earlier and an increase of 9.1 per cent in December 2020. On MoM basis, it decreased by -0.4 per cent in December 2021 as compared to increase of 3.6 per cent a month earlier and a decrease of -2.7 per cent in December 2020.
READ MORE: Comparing inflation target not correct: State Bank
Wholesale Price Index (WPI) inflation on YoY basis increased by 26.2 per cent in December 2021 as compared to an increase of 27.0 per cent a month earlier and an increase of 5.7 per cent in December 2020. WPI inflation on MoM basis decreased by -0.2 per cent in December 2021 as compared to an increase of 3.8 per cent a month earlier and an increase of 0.3 per cent in corresponding month i.e. December 2020.
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Incentives approved for exchange companies on dollar surrender
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved incentive program for exchange companies on surrendering dollars in interbank.
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Prices of all POL products increased to wish New Year
ISLAMABAD: The government on Friday increased prices of all petroleum products to wish the nation the New Year 2022.
The prices have been increased across the board around Rs4 per liter on all the products.
READ MORE: Petrol price reduces to Rs140.82 per liter
The prices have been implemented at 00:00 hours of January 01, 2022 for next fortnight.
According to a notification issued by the finance division the new price of petrol has been increased by Rs4 to Rs144.82 per liter from Rs140.82.
The rate of high speed diesel (HSD) has been increased by Rs4 to Rs141.62 per liter from Rs137.62.
READ MORE: SBP revises manual on remittances for petroleum sector
Similarly, the price of kerosene has been increased by Rs3.95 to Rs113.53 per liter from Rs109.53.
Likewise, the price of light diesel oil has been increased by Rs4.15 to Rs111.06 per liter from Rs107.06.
The notification stated that in the fortnightly review of petroleum products prices, the prime minister had rejected the proposal of Oil and Gas Regulatory Authority (OGRA) for increase in prices of petroleum products and advised to increase only Rs4 per liter to meet the petroleum levy target agreed with the International Monetary Fund (IMF).
“Sales tax on petrol and diesel has been adjusted downwards as compared to December 16, 2021 to keep the prices lower,” the notification stated.
READ MORE: FBR notifies increase in sales tax on petrol, HSD