The Federal Board of Revenue (FBR) has introduced new penalty regime introduced for non-filing tax returns in order to encourage documentation.
(more…)Author: Mrs. Anjum Shahnawaz
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NADRA’s computation to be treated as assessment: FBR
ISLAMABAD: Federal Board of Revenue (FBR) has said that computation of income and assets prepared by the National Database Registration Authority (NADRA) shall be treated as assessment.
The FBR in explanation to Tax Laws (Third Amendment) Ordinance, 2021 said that a new section 175B has been inserted in the Income Tax Ordinance, 2001 aiming to broaden the tax base through collaboration between NADRA and FBR.
Sub-section (1) of section 175B mandates NADRA to share its records or any other information available or held by it, on its own motion or upon application by the Board.
Sub-section (2) thereof allows NADRA to compute indicative income and tax liability on the basis of various expenses, receipts, assets, properties and liabilities etc. using artificial intelligence, mathematical or statistical modeling or any modern methods.
The FBR may forward such information to the concerned tax authorities having jurisdiction in connection to the subject matter relating to the information, who may utilize the information for the purpose of levy of tax.
The indicative income and tax liability shall be communicated to the person to whom it relates. Such person shall have the option to pay tax as prescribed. In case of failure to pay such liability within stipulated
timeframe, the tax authority shall take action under the provisions of the Ordinance on the basis of the Indicative Income so computed.
If the person against whom the liability has been determined under sub-section (4) of the newly inserted section pays such liability, such payment shall be construed to be an amended assessment order under section 120 or 122(1) or 122(4) as the case may be.
Board is also vested with the powers to make rules for the purposes of subsections (4) and (5) to prescribe the extent of installments, and any relief regarding the penalty and default surcharge, and time limits.
To provide an enabling environment for the joint mechanism the restrictions on provision of information in terms of section 198 have been done away with and the said section is now omitted.
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Weekly Review: jittery sentiments likely
KARACHI: Investors’ sentiments are likely jittery during the next week owing to measures taken by the government to curtail import bill.
Analysts at Arif Habib Limited said that with the government making all efforts to restrict imports, tax collection (silver lining in the domestic economic climate at the moment), may also be hurt.
Market sentiments may be tested once again with the government proposing a hike in gas/electricity tariffs.
However, the resumption of the IMF program next month could provide a breather.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.3x (2021) compared to Asia Pac regional average of 14.4x while offering a dividend yield of 8.1 per cent versus 2.3 per cent offered by the region.
This week marked the current fiscal year’s worst-performing week to date (second on CY basis), the equity bourse closed at 45,074 points (down by 3.4 per cent / 1,563 points WoW).
Amid rising demand and the upcycle in international commodities exacerbating the deficit on the external front, raising red flags over future CPI readings and building pressure on the Pak Rupee, the SBP commenced tapering its monetary stimulus.
A 25 basis points hike in the policy rate, shifting the focus from prioritizing growth to now ensuring sustainability, was put into effect to stop the economy from overheating.
While the government also adopted other measures to curtail demand such as tightening regulatory and consumer financing policies for auto consumers. Hence, investors remained on the edge.
Sector-wise negative contributions came from i) Technology (275 points), ii) Cement (196 points), iii) Commercial banks (148 points), iv) Fertilizer (137 points), and v) E&P (134 points). Whereas, sectors which contributed positively were i) Miscellaneous (41 points), and ii) Chemical (3 points). Scrip-wise negative contributors were TRG (142 points), SYS (124 points), HBL (71 points), OGDC (70 points) and PPL (55 points). Meanwhile, scrip-wise positive contribution came fr om PSEL (46 points), MCB (18 points) and BAFL (15 points).
Foreign buying was witnessed this week, settling at USD 6.7 million compared to a net sell of USD 10.9 million last week. Major buying was witnessed in Other Sectors (USD 6.1 million), Technology and Communication (USD 3.0 million) and Oil and Gas Marketing Companies (USD 1.8 million). On the local front, selling was reported by Individuals (USD 7.5 million) followed by Companies (USD 3.5 million). Average volumes clocked-in at 384 million shares (down by 4 per cent WoW) while average value traded settled at USD 73 million (down by 18 per cent WoW).
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PSW to reduce trade cost, time, and complications: Tarin
ISLAMABAD: Finance Minister Shaukat Tarin on Friday said that Pakistan Single Window (PSW) will facilitate trade by reducing cost, time and complications.
Shaukat Tarin presided over the first meeting of Governing Council of PSW held at the Finance Division.
The finance minister appreciated the progress and stated that PSW will reduce time, cost and complications while contributing significantly towards ease of doing business in the country.
He said that PSW will enable Pakistan to unlock its potential in becoming a hub for regional as well as international trade and transit.” Deep rooted reforms being undertaken under PSW program by the government will promote trade competitiveness with enhanced transparency and efficiency,” Tarin added.
The new system will leverage information and communication technology to ensure better compliance with the cross-border trade regulations.
The finance minister commended the efforts of Pakistan Customs as the lead agency of PSW program and all those who have been part of PSW, a transformational project, which will take Pakistan’s trade to the next level. He affirmed full support and facilitation on the occasion.
The Secretary of the Governing Council briefed the Finance Minister about the PSW, a virtual system which is connecting the concerned Ministries, Customs, port authorities, banks and other relevant departments after major process re-engineering to provide a single window for management of international trade.
The PSW is a facility that allows parties involved in trade and transport in Pakistan to lodge standardized information and documents at a single registration point.
This eliminates the hidden costs and removes inefficiencies in governance of international trade including logistics.
He further briefed that first phase of PSW program has been rolled out while its 2nd and 3rd phases will be completed within the next two years.
The implementation of PSW will make Pakistan’s ports competitive by minimizing the transaction costs and also enhance efficient provision of B2B and B2C value added services. The cargo would be cleared in a minimum possible time.
Over 75 regulatory departments will be fully integrated through ICT based system, providing a single point of entry to facilitate trading across borders with minimal need for any physical contact, he added.
The Governing Council (GC) is the apex body in the approved Business model of PSW under Pakistan Single Window Act, promulgated in April this year.
The GC comprises of key stakeholders and prominent private sector subject specialists to oversee timely completion of this important project while removing hurdles in its implementation.
The Finance Minister is the Chairperson of PSW’s Governing Council which also includes Secretary Commerce, Secretary M/o NFS&R, Secretary Maritime Affairs, Secretary Science & Technology, Secretary Narcotics Control Division, Member Customs Operations and CEO PSW Company.
Among others, Federal Secretary for Narcotics Akbar Durrani, Additional Secretary Commerce, Additional Secretary Economic Affairs Division, Member Customs FBR and senior officers of the Ministry of National Food Security & Research, Ministry of Health, Ministry of Science & Technology, Ministry of Maritime Affairs participated in the meeting.
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KSE-100 index plunges by 1,562 points in week
KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) witnessed a decline of 223 points on Friday and witness a fall of 1,562 points to end the week.
The KSE-100 index ended at 45,074 points from the previous day’s closing of 45,297 points. The index continuously fell during all the days during the outgoing week.
The index ended at 46,636 points last Friday i.e. September 17, 2021, and closed at 45,074 points on September 24, 2021.
Analysts at Topline Securities said that the stock market continued its bearish momentum.
The KSE-100 index largely remained in the red zone on the last trading session of the week to close at 45,074 level, as an increase in the policy rate by 25 basis points to 7.25 per cent by the State Bank of Pakistan (SBP) earlier this week kept the investor sentiment bearish.
TRG, MCB, CHCC, INDU and FFBL lost value to weigh down on the index by 102 points. Traded volume and value for the day stood at 370 million shares and Rs.11.78 billion respectively.
BYCO was today’s volume leader with 47 million shares.
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PKR falls against dollar in interbank market
KARACHI: The Pak Rupee (PKR) continued its slide against the dollar on Friday in the interbank foreign exchange market.
The rupee fell by five paisas to close at Rs169.08 to the dollar from the previous day’s closing of Rs168.03 in the interbank foreign exchange market.
The rupee depreciated despite the initiatives taken by the State Bank of Pakistan (SBP) to support the balance of payment.
The SBP a day earlier issued revised Prudential Regulations (PRS) for Consumer Financing. The targeted step will help to moderate demand growth in the economy, leading to slower import growth and thus supporting the balance-of-payments, the SBP said.
The changes in the regulations effectively prohibit financing for imported vehicles, and tighten regulatory requirements for financing of domestically manufactured/ assembled vehicles of more than 1000 cc engine capacity and other Consumer Finance facilities like personal loans and credit cards, the SBP added.
The local currency is near to make another historic low. The rupee hit all-time low of Rs169.12 on September 15, 2021.
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Draft rules issued for Uzbekistan-Pakistan transit trade
ISLAMABAD, April 17, 2025 — The Federal Board of Revenue (FBR) has taken a major step to enhance regional trade by issuing draft rules for the Uzbekistan-Pakistan Transit Trade (UPTT) mechanism. These regulations aim to formalize and streamline the movement of goods between Pakistan and Uzbekistan, promoting cross-border trade through efficient logistics and transparent customs procedures.
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Foreign exchange reserves fall to $26.402 billion
KARACHI: The liquid foreign exchange reserves of the country fell by $663 million during the week ended September 17, 2021.
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SBP prohibits bank loans for imported vehicles
KARACHI: The State Bank of Pakistan (SBP) on Thursday amended regulations to prohibit financing for imported vehicles.
“The changes in the PRs effectively prohibit financing for imported vehicles,” the SBP said in a statement.
According to the statement, the SBP had revised Prudential Regulations (PRS) for Consumer Financing.
This targeted step will help to moderate demand growth in the economy, leading to slower import growth and thus supporting the balance of payments.
The changes in the regulations effectively prohibit financing for imported vehicles and tighten regulatory requirements for financing of domestically manufactured/ assembled vehicles of more than 1000 cc engine capacity and other Consumer Finance facilities like personal loans and credit cards. Following changes have been made in this regard:
— Maximum tenure of auto finance has been reduced from seven (7) to five (5) years;
— Maximum tenure of personal loan has been reduced from five (5) to four (4) years
— Maximum debt-burden ratio, allowed to a borrower, has been decreased from 50 to 40 percent;
— Overall auto financing limits availed by one person from all banks/DFIs, in aggregate, will not exceed Rs3,000,000, at any point in time; and
— Minimum down payment for auto financing has been increased from 15 percent to 30 percent.
With the objective to protect lower to middle-income category purchases, these new regulations are not applicable to locally manufactured or assembled vehicles of up to 1,000 cc engine capacity, the SBP said.
They are also not applicable to locally manufactured electric vehicles to promote the use of clean energy.
The financing of these two categories of vehicles will continue to be governed by the previous set of regulations.
Further, in order to encourage Roshan Digital Accounts and facilitate overseas Pakistan who have opened these accounts, regulatory instructions for Roshan Apni Car products of the banks or DFIs have also not been changed.
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Emirates pavilion to welcome visitors of Expo 2020 Dubai
KARACHI: Expo 2020 Dubai’s must-see aviation attraction is gearing up to open its doors to the public on October 01, 2021.
Located in the Opportunity District, and within walking distance of the Al Wasl Dome, the Emirates Pavilion offers a preview for the future of commercial aviation, reframing the role that science and technology will play in the next 50 years of air travel, as it welcomes visitors to experience two floors of interactive multi-sensory installations.
From today, visitors to Expo 2020 Dubai can plan their visit to the Emirates Pavilion and book their preferred date and time slots in advance.
Construction on the Emirates Pavilion began in March 2019 and was completed in June 2021. During its design and construction phases, the Emirates Pavilion followed a number of sustainability principles, using non-hazardous, regional, reusable and recyclable materials in its overall structure, and incorporated different design solutions to reduce energy and water consumption.
The Emirates Pavilion’s towering four storey design and façade are modelled around an aircraft’s wings taking flight, with 24 aluminium cladded fins that curve around two sides of the building structure. The Emirates Pavilion’s exterior lighting includes an 800 metre LED system, which illuminates in vibrant colours at night.
The interior’s bright, ultramodern design lets in ample natural light and serves as a backdrop for the immersive experiences, and can welcome 120 people an hour.