Karachi, September 07, 2021 – The State Bank of Pakistan (SBP) has issued the exchange rates for customers on Monday, September 07, 2021.
(more…)Author: Mrs. Anjum Shahnawaz
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Powers to initiate recovery proceeding any time
The Federal Board of Revenue (FBR) has reinforced its authority to initiate and streamline recovery proceedings against tax defaulters with the introduction of Sections 146A, 146B, and 146C in the Income Tax Ordinance, 2001.
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Tax recovery from persons in AJK, Gilgit-Baltistan
Section 146 of Income Tax Ordinance, 2001 has outlined the procedure for tax recovery from persons assessed in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 146 of the Income Tax Ordinance, 2001.
146. Recovery of tax from persons assessed in Azad Jammu and Kashmir and Gilgit-Baltistan.— (1) Where any person assessed to tax for any tax year under the law relating to income tax in the Azad Jammu and Kashmir or Gilgit-Baltistan has failed to pay the tax and the income tax authorities of the Azad Jammu and Kashmir or Gilgit-Baltistan cannot recover the tax because —
(a) the person’s resi44dence [edit: residence] is in Pakistan; or
(b) the person has no movable or immovable property in the Azad Jammu and Kashmir or Gilgit-Baltistan, the Deputy Commissioner in the Azad Jammu and Kashmir or Gilgit-Baltistan may forward a certificate of recovery to the Commissioner and, on receipt of such certificate, the Commissioner shall recover the tax referred to in the certificate in accordance with this Part.
(2) A certificate of recovery under sub-section (1) shall be in the prescribed form specifying —
(a) the place of residence of the person in Pakistan;
(b) the description and location of movable or immovable property of the person in Pakistan; and
(c) the amount of tax payable by the person.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Tax assessment of persons about to leave Pakistan
Section 145 of Income Tax Ordinance, 2001 has explained the assessment of any person who is likely to leave Pakistan during the current tax year or shortly after its expiry.
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Tax treatment of non-resident owner of aircraft
Section 144 of Income Tax Ordinance, 2001 deals with the tax treatment of a non-resident aircraft owner or charterer liable to tax.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 144 of the Income Tax Ordinance, 2001.
144. Non-resident aircraft owner or charterer. — (1) A non-resident owner or charterer of an aircraft liable for tax under section 7, or an agent authorised by the non-resident person for this purpose, shall furnish to the Commissioner, within forty-five days from the last day of each quarter of the financial year, a return, in respect of the quarter, showing the gross amount specified in sub-section (1) of section 7 of the non-resident person for the quarter.
(2) Where a return has been furnished under sub-section (1), the Commissioner shall, after calling for such particulars, accounts or documents as he may require, determine the amount of tax due under section 7 by the non-resident person for the quarter and notify the non-resident person, in writing, of the amount payable.
(3) The non-resident person shall be liable to pay the tax notified under sub-section (2) within the time specified in the notice and the provisions of this Ordinance shall apply to such tax as if it were tax due under an assessment order.
(4) Where the tax referred to in sub-section (3) is not paid within three months of service of the notice, the Commissioner may issue to the authority by whom clearance may be granted to the aircraft operated by the non-resident person a certificate specifying the name of the non-resident person and the amount of tax due.
(5) The authority to whom a certificate is issued under sub-section (4) shall refuse clearance from any airport in Pakistan to any aircraft owned or chartered by the non-resident until the tax due has been paid.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Pak-Qatar Takaful, PakWheels ink pact for auto products
KARACHI: Pak-Qatar General Takaful has signed a Memorandum of Understanding (MoU) with PakWheels.com to promote auto Takaful products to its customers.
Mehmood Arshad, Country Head – Marketing Pak-Qatar General Takaful and Suneel Sarfaraz Munj, Chairman PakWheels.com signed the Memorandum of Understanding along with senior officials, said a statement on Monday.
Since its inception in 2003, PakWheels.com has helped millions of Pakistanis buy and sell automobiles, read automotive reviews and news, check automotive prices and find solutions to all of their automotive needs.
PakWheels.com gets over 25 million visitors annually who view more than 250 million pages on the website. Last year alone, close to 50 per cent of Pakistan’s internet population visited PakWheels.com to buy and sell over 400,000 vehicles.
While speaking at the signing ceremony, Mehmood Arshad stated: “It is indeed great honor for us to join hands with PakWheels.com as this partnership will bring fruitful results for both business partners. Also, masses will benefit from seeking protection for their vehicles in case of any untoward incident.”
Suneel Sarfaraz Munj, Chairman PakWheels.com commented: “We are glad to sign this Memorandum of Understanding with Pak-Qatar General Takaful as we are hopeful that our customers will benefit from Motor Takaful coverage offered by PQGTL.
I am confident that such kind of partnerships will further offer convenience to online customers.”
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Finance ministry reviews trade balance situation
ISLAMABAD: Federal Finance Minister Shaukat Tarin presided over a meeting on Monday to review the trade balance situation.
Federal Minister for Economic Affairs Division Omar Ayub Khan, Secretary Commerce, Secretary M/o Information Technology, Secretary Finance Division, Governor State Bank of Pakistan Dr. Reza Baqir, Executive Director General BOI, and other senior officers participated in the meeting.
Adviser for Commerce Abdul Razak Dawood participated through a video link.
Secretary Commerce briefed the participants about the trade balance situation over the last two months.
Considering the expansion in economic activity, the import of one-time items like vaccines for COVID-19 as well as increased demand for raw materials has resulted in increasing imports during July and August 2021.
In his remarks, the Finance Minister stated that the economy is in a state of growth. As the economy registered a growth rate of 4 per cent during FY2021, there is an increased demand for imports.
As long as the trade deficit is within a sustainable level, it will stimulate economic recovery, he added.
The Finance Minister stressed upon the Ministry of Commerce to conduct sensitivity analysis and build scenarios for effective forecasting both in imports as well as exports for each month of the year.
In his concluding remarks, the Finance Minister said that the prudent policies adopted by the present government have stimulated economic recovery amid the COVID-19 pandemic. The economy is heading in the right direction.
The enhanced revenue collection along with improved ratings (Business Confidence Index and by international credit rating agencies) indicates that the economy has gained momentum and is geared towards inclusive and sustainable economic growth.
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Mobilink Bank, Universal Motors sign financing deal
KARACHI: Mobilink Microfinance Bank Limited (MMBL) has signed a Memorandum of Understanding (MoU) with Universal Motors (Private) Limited for financing motor vehicles.
The collaboration will facilitate MMBL Borrowers by allowing them to finance commercial vehicles from Universal Motors through subsidized offerings, according to a statement issued on Monday.
President & CEO MMBL, Ghazanfar Azzam, and Adil Noman, CEO Universal Motors signed the MoU in Islamabad with senior officials from both organizations in presence.
The collaboration will usher in fast-track and priority financing for MMBL borrowers to attain commercial vehicles from Universal Motors for starting or expanding their business operations, under convenient terms.
Following the MoU, MMBL customers will get fast product delivery Turnaround Times (TAT), in addition to the provision of 1S/2S/3S dealership or retailer services by Universal Motors, near MMBL branches across the country to extend after-sale services for borrowers.
Creating further ease for borrowers, the vehicles will be delivered at MMBL branch cities with Universal Motors sharing the registration costs, and offering vehicle delivery from Karachi to the destination city at subsidized transportation rates.
Sharing his thoughts at the signing ceremony, President and CEO MMBL, Ghazanfar Azzam said,” MMBL’s expansive product portfolio has witnessed a significant growth trajectory over the past few years with the introduction of more and more customer-centric products that are aimed at facilitating maximum convenience for empowering our borrowers in true sense.
“This collaboration with Universal Motors will further solidify our aim of promoting hassle-free attainment of commercial vehicles, for business use, which will substantially be backed by quality after-sales services.”
Adil Noman, CEO Universal Motors said, “Our collaboration with MMBL will help us target low-income groups that need financing for our sturdy and dependable JMC commercial vehicles. Universal Motors is introducing special financial incentives and logistical support to fully facilitate MMBL borrowers.
“We are hopeful that our collaboration with MMBL will drive our shared ambition of supplementing the economic development of Pakistan.”
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Stock market ends down by 39 points in lackluster trading
KARACHI: The stock market fell by 39 points on Monday in lackluster trading activity during the day. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 46,918 points from last Friday’s closing of 46,957 points.
Analysts at Topline Securities said that a lackluster session was observed at the bourse during the day.
To note, concerns regarding a ballooning trade deficit number coupled with a potential reclassification of Pakistan from the MSCI Emerging Market Index to the MSCI Frontier Market Index kept the investors at bay.
On the results front, FCCL announced its FY21 EPS of 2.52 as compared to an LPS of (0.04) in the corresponding period last year. However, the stock succumbed to selling pressure as investors seemed disappointed over no payout after which the stock closed at Rs19.50 (down 2.69 per cent).
Volumes continued to remain depressed as the total volume for the KSE 100 Index clocked in at 94.25 million shares while the total turnover in the KSE All Share Index was recorded at 416.15 million shares.
The volume leader in today’s session was TPL with 59.66 million shares exchanging hands.
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POS retailers to collect Re1 as service charge: FBR
ISLAMABAD: Federal Board of Revenue (FBR) has said that only one rupee will be collected by retailers of Point of Sale (POS) as service charge on the total amount of each invoice.
The FBR strongly rebutted the malicious disinformation campaign being spread on social media against the proposed Service Charge of Re1 to be collected on all invoices issued by Tier-1 Retailers integrated with FBR’s electronic system of real-time reporting of sales.
It is being insinuated as if the rate of the Service Charge is 1 percent instead of Rupee 1 per invoice only. “This is completely baseless and untrue.”
The nominal Service Charge @ Re. 1 per invoice of whatever denomination, would be collected under section 76 of the Sales Tax Act, 1990, and utilized to promote the integration of all Tier-1 Retailers, launch publicity campaign, and finance a special prize scheme for all customers who duly verify their invoices to determine the validity and genuineness of the invoices issued by the integrated Tier-1 Retailers, FBR added.
The malicious campaign appears to have been initiated by the vested interests who oppose POS integration, and those who continue to collect Sales Tax from the general public but do not deposit it with the Government Treasury.
FBR has re-affirmed its resolve to continue integrating Tier-1 Retailers across the country with vigor.