According to the amendment, where any person fails to furnish a return of income as required under Section 114 within the due date:
“Such person shall pay a penalty equal to higher of –
(a) 0.1 per cent of the tax payable in respect of that tax year for each day of default; or
(b) rupees one thousand for each day of default:
Provided that minimum penalty shall be —
(a) rupees ten thousand in case of individual having seventy-five percent or more income from salary; or
(b) rupees fifty thousand in all other cases:
Provided further that maximum penalty shall not exceed two hundred percent of tax payable by the person in a tax year:
Provided also that the amount of penalty shall be reduced by 75 per cent, 50 per cent and 25 per cent if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law;
Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under sections 120, 121, 122 or 122D.
The following link provides previous penalty amount for not furnishing returns:
The KSE-100 Index closed at 46,636 points from last day’s closing o 46,920 points.
Analysts at Topline Securities said that the KSE-100 index traded in a positive zone during the first half of the trading session, as the index gained to make an intraday high of 261 points.
However, the pressure was observed during the second half of the trading session, as the index declined to close at 46,636 level (down by 0.6 per cent).
This pressure in the second half of trading session can be attributed to upcoming monetary policy on September 20, 2021, and news that New Zealand cricket team has abandoned their tour of Pakistan and are making arrangements to leave early citing security concern.
Traded volume and value for the day stood at 387 million shares and Rs.16.2 billion respectively. WTL was today`s volume leader with 42 million shares.
KARACHI: The Pak Rupee (PKR) ended down by one paisa against the dollar on Friday as the exchange rate remained under pressure due to high external payments.
Currency experts said that the market had observed dollar demand for import and corporate payments, especially two weekly holidays ahead.
The experts said that data released by the State Bank of Pakistan (SBP) showing widening of the current account deficit also kept the pressure on the local unit.
Pakistan’s current account deficit has widened to $2.29 billion during the first two months (July – August) of the current fiscal year. The current account had posted a surplus of $838 million in the same months of the last fiscal year.
The NCCPL will collect the CGT for the period July 01 – July 31, 2021, on Friday, September 24, 2021, through the respective settling banks of the clearing members.
All clearing members have been asked to ensure the requisite amount in their respective settling bank’s account.
Necessary details and reports for the period have already been made available in the CGT System.
Further, the aggregate amount of CGT arising on the trading of future commodity contracts at the Pakistan Mercantile Exchange for the period July 01, 2021, to July 31, 2021, would also be collected from the Pakistan Mercantile Exchange on Friday, September 24, 2021.
Necessary details and reports for the period have already been made available.
Clearing Members and Pakistan Mercantile Exchange have been advised to verify the investor-wise details of capital gain or loss and tax thereon, if any, through reports/downloads.
In case of none or partial collection of CGT, necessary action would be taken in accordance with the Rules and NCCPL Regulations, it said.
KARACHI: Imran Maniar, Managing Director of Sui Southern Gas Company (SSGC) has said that gas crises being faced during the winter season were likely to continue for one to two more years until the new terminals for RLNG get installed at the Port.
There were difficulties and challenges but the picture is rosy as upon completion and activation of Terminal III at the Port and if the SSGC decides to make a commitment with terminal owner only if consumers of SSGC pledge to buy the additional 500 mmcf, it would certainly help in resolving gas shortage issue being suffered by all types of consumers in Karachi, he added while exchanging views at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI).
Chairman Businessmen Group (BMG) & Former President KCCI Zubair Motiwala, Vice Chairman BMG Jawed Bilwani, President KCCI Shariq Vohra, Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan, Former Presidents KCCI Majyd Aziz and Younus Bashir, Former Vice President Muhammad Idrees, Chairman Public Sector Utilities Subcommittee Atif Jamil ur Rehman and Managing Committee Members along with representatives of industrial town associations also attended the meeting.
While highlighting the overall gas demand-supply situation, MD SSGC informed that a total of 4,000 mmcf gas including indigenous gas and RLNG was being used all over the country, of which around 950 mmcf was being provided to SSGC from indigenous resources in Sindh and Baluchistan while 150 mmcf of RLNG was also being given to them and the rest of gas was being used by SNGPL. SSGC takes 110 mmcf from natural resources in Baluchistan while the rest of 75 percent gas comes into the system from resources in Sindh but these gas reserves were depleting fast at a rate of 10 percent per annum.
He said that SSGC takes around 150 to 180 mmcf RLNG from two terminals at Port Qasim but the supply shrinks to 70 or 80 mmcf from these terminals during winter and the demand for gas in Baluchistan rises to 120 mmcf which creates an overall gas shortage of around 195 mmcf. To deal with gas shortages, the Ministry has designed a mechanism in which all the consumers from domestic to industrial have been ranked from top to bottom in which domestic consumers were at the top of the list, followed by export-oriented industry while CNG stations were at the bottom of the list and non-export industry was above CNG stations.
Therefore, SSGC carries out load management during winter season exactly as per list provided by the Ministry whereas RLNG supplies to KE are completely cut to zero that helps in covering the gas shortage by 75 to 80 mmcf whereas suspension of gas to CNG stations further saves 20 mmcf that leads to reducing the gas shortfall by 95 mmcf, out of a total shortfall of 195 mmcf, he added.
He further pointed out that there was a tremendous push to get villages gasified which requires significant investment of billions of rupees and huge resources including workforce and equipment who have to be sent to remote areas and villages.
He further said that the industry was paying 70 to 80 percent of gas being consumed by the domestic consumers as the gas tariff for domestic users was very low and less than any other consumers all around the world including Qatar and Iran as it was being subsidized by the industry.
Speaking on the occasion, Chairman BMG Zubair Motiwala pointed out that the first and foremost problems being faced by gas consumers was the low gas pressure in the industrial zones of Karachi which has created a serious havoc and the entire industry was unable to meet its requirements including the efficiency benchmarks and delivery time that intensifies the sufferings for the exporters. “As winter season is just ahead, what will happen to gas pressure during winter and what is the current condition of gas supply”, he asked.
Zubair Motiwala said that the data of last one decade indicates that 1200 mmcf of gas was available from indigenous resources ten years ago when the industries were utilizing around 385 mmcf gas and then around 7 years ago, a decline to 335 mmcf was witnessed in the industrial consumption which later on picked up but to date, the maximum industrial consumption was not more than 400 mmcf.
“We are concerned about the future as the demand for gas continues to rise because the industries have imported huge number of machines to enhance their production thanks to government policies but all these machines are going to require energy including gas and electricity so what is going to happen and what is the energy scenario for these machines which have been imported”, he said, adding that machineries worth US$1.5 billion dollars has already arrived, of which machineries valuing around US$400 to US$500 million have already been installed and started production whereas more machines worth US$1.5 billion were also in pipeline which would require more gas.
He was of the view that demand from industries during winter remains intact yet the industries suffer the most which was not a correct approach. The demand for gas rises in Baluchistan to 200 mmcf from around 40 to 50 mmcf and it also increases in Sindh during winter season. Hence, the gas shortage was not because of rise in demand by the industry but purely due to enhanced consumption by domestic users. “Despite staying stagnant in terms of gas demand, supply to industry is curtailed and we are compelled to suffer. We don’t want more gas in winter, we want the same quantum of gas in winter at adequate pressure”, he added.
Zubair Motiwala further stated that the five zero rated sectors agreed on a tariff of 6.5 dollars for RLNG gas which was available to entire Pakistan but SSGC has denied this tariff and the export-oriented industries falling under SSGC’s franchise have been compelled to use RLNG at exorbitant rate which was not affordable. “In this situation, when we are deprived of receiving RLNG, we might have to shift to SNGPL network.”
He further expressed apprehensions over gas connections being given to new buildings which was going to intensify the hardships for industries because as per policy, supplying gas to domestic consumers was the top priority which means that the industries were going to suffer further curtailment due to more supply of gas to new domestic consumers. “All the new buildings should be provided gas via alternate means like bousers and the storage facility can be established at the basements of new buildings whereas the domestic consumers must be advised to switch over from gas-run geezers to solar-run geezers as successfully done in many countries all around the world”, he added.
President KCCI Shariq Vohra, while welcoming the MD SSGC, said that gas has become a serious issue as Pakistan’s natural gas reserves were rapidly depleting while the gas distribution system of SSGC was in a pathetic state, causing severe line losses which was due to the fact that SSGC, which was once known as the best utility service provider company, has been through terrible circumstances during the last 10 years. SSGC has to define effective strategies to control waste of natural gas resources and theft in order to save the economy and the industry from severe losses, he added.
ISLAMABAD: The price of motor spirit (petrol) has been increased to all-time high at Rs123.30 per liter and will take effect from September 16, 2021.
The Finance Division on Wednesday issued the rates of petroleum products for the next fortnight. The government has increased the prices of all petroleum products for the next 15 days.
The government has increased the prices owing to fluctuations in petroleum prices in the international market and exchange rate variation.
Following are the rates of petroleum products, which will take effect from September 16, 2021:
The rate of petrol has been increased by Rs5 to Rs123.30 per liter from Rs118.30.
The rate of high-speed diesel has been increased by Rs5.01 to Rs120.04 per liter from Rs115.03.
The rate of kerosene oil has been increased by Rs5.46 to Rs92.26 per liter from Rs86.80.
The rate of light diesel oil has been increased by Rs5.92 to Rs90.69 from Rs84.77.
ISLAMABAD: The Federal Board of Revenue (FBR) has issued 650,000 notices to consumers of electricity and gas, who are not in the tax net, in its efforts to enhance tax compliance.
The FBR said that data has been obtained from DISCOs and Gas Companies for broadening of tax base. More than 650,000 notices have been issued on the basis of data obtained from DISCOs and in lieu of these notices 129,541 returns have been enforced so far.
The FBR has undertaken unprecedented enforcement measures to ensure filing of returns. Resultantly, the number of income tax return filers for TY2020 has crossed 3.1 million.
Tax Asaan, has been launched which provides basic verification features like ATL, Online NTN/STRN inquiry, exemption certificates and sales tax registration. Facility for filing income tax returns for salaried class has also been included in the application.
In order to develop 360 degree view of tax payers, data sources like banks, vehicles and real estate transactions have been captured and a Data Bank has been developed. Based on this data bank, notices to more than 200,000 high net-worth un-registered persons have been issued.
To ensure proper declaration of sales by retailers and to realize due revenue from them, FBR has initiated the integration of all sales outlets of tier-1 retailers with FBR’s central computerized system. The system shall ensure that all sales are reported in real-time to FBR and are duly accounted for in monthly sales tax returns of such retailers.
The scheme was initially launched for textile and leather retailers last year which has now been made mandatory for all tier-1 retailers with effect from 15th December 2019.
The field offices have been directed to undertake surveys in their respective jurisdictions and ensure integration of all tier-1 retailers.
In order to prevent leakage of revenue, under-reporting of production and sales, and to ensure proper payment of FED and Sales Tax on the manufacture and sale of specified goods/ products, FBR has initiated the implementation of Track and Trace System for specified goods/ products i.e. Tobacco, Cement, Sugar, Fertilizer and Beverages imported into or manufactured in Pakistan.
Sectorial analysis of huge business concerns has been conducted across the country by Assessment & Processing Units in all field formations of IRS. Sectors like cement, sugar, cotton and tobacco remained under focus. Legal action has been initiated against the defaulting units.
Legal actions (attachment of properties, arrests and seizures) has been made against huge tax-defaulters to create deterrence against tax-evaders.
Establishment of Inland Revenue Enforcement Network (IREN) to check smuggling and counterfeit products. Inland Revenue Service and Pakistan Customs Service have joined hands for anti-smuggling field intelligence exercise.
FBR has launched Maloomat (tax profiling system) on its web portal, containing data of 53 million citizens, giving access to the filers and non-filers to the information about their assets and bank accounts available with FBR.
A day earlier i.e. September 14, 2021, the rupee ended at Rs168.94 to the dollar, recording the all-time low against the foreign currency. The previous low was Rs168.44 to the dollar was recorded on August 26, 2020.
So far in the early trade, the rupee lost 31 paisas against the greenback. Currency experts said that immediate support is required to stabilize the local currency.
KARACHI: The stocks witnessed a decline of 379 points on Tuesday owing to selling pressure witnessed during the day. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 46,891 points as against the previous day’s closing of 47,270 points.
Analysts at Arif Habib Limited said that the market tumbled mainly as a result of redemptions at mutual funds’ end.
On the other hand, negative news triggers on the slippage of PKR parity with USD, US State Secretary’s hint on revisiting US – Pakistan relations and pending IMF review had bearing on the Index.
Selling was observed across the board with Technology, E&P, Cement and Steel sectors leading the downside on Index.
Financial results announced today also failed to impress the investors. Refinery sector faced the onslaught with failure in approval of Refinery Policy as reported in newspapers, especially BYCO.
Among scrips, BYCO led the volumes with 71.6 million shares, followed by TELE (51.2 million) and WTL (25.3 million).
Sectors contributing to the performance include Cement (-96 points), Refinery (-52 points), E&P (-45 points), Technology (-39 points) and O&GMCs (-28 points).
Volumes increased from 395.8 million shares to 479.8 million shares (+21 per cent DoD). Average traded value, on the other hand, declined by 7 per cent to reach US$ 89.0 million as against US$ 95.8 million.
Stocks that contributed significantly to the volumes include BYCO, TELE, WTL, ANL and HUMNL, which formed 40 per cent of total volumes.
Stocks that contributed positively to the index include HBL (+36 points), HMB (+22 points), FFC (+9 points), DCR (+6 points) and PKGS (+5 points). Stocks that contributed negatively include LUCK (-44 points), TRG (-24 points), OGDC (-23 points), DGKC (-19 points) and BYCO (-18 points).
The FBR system was not working for 10 days during the last month, said Shaukat Tarin at a press conference on Tuesday.
“We will talk to the FBR to extend the date of filing tax returns,” he added.
The finance minister said the government will start giving targeted subsidies from this month to the weak segments of society on essential commodities including sugar, flour and pulses.
Addressing a news conference along with Minister of State for Information and Broadcasting Farrukh Habib and Special Assistant on Food Security Jamshed Cheema, he said the targeted subsidy will be in the form of cash assistance, which will cover thirty-five to forty percent population.
The Finance Minister said the government is also focusing on bolstering the agriculture productivity. In the medium to long term, commodity warehouses, cold storages and agri malls will be established with the aim to eliminate the role of middle man and ensure that the farmers get due price of their products. He said strategic reserves of major commodities are also being built in order to ensure smooth supplies in the market.
The Finance Minister said that the prices of wheat will see decline in the coming days.
Shaukat Tarin said the government has tried its level best not to fully pass on to the masses the impact of international increase in the prices of commodities. He pointed out that sugar prices increased by forty eight percent in the world market but we only creased its price by eleven percent. Palm oil saw an increase of fifty percent but we increased the price by thirty three to thirty five percent. Similarly the prices of crude oil and wheat were not enhanced as per the international market.
The Finance Minister said the government is also giving attention to enhance the incomes of the people to enhance their purchasing power.
Shaukat Tarin said that Kamyab Pakistan Program will be launched this month in order to enable the weak segments of the society earn their livelihoods.
Shaukat Tarin said that the results our growth strategy are visible and the revenue collection is increasing. He said we are on the track to achieve five percent growth during the current fiscal year. This, he said, will also help reduce our debt to GDP ratio.
As regards the State Owned Enterprises, the Finance Minister said we have to turn around them. He said a board is being established in the privatization in order to run the State Owned Enterprises on professional lines. He said these enterprises will be privatized after turning them around.
Speaking on the occasion, Jamshed Iqbal Cheema said the prices of flour, sugar, Ghee and pulses would be reduced by December this year. He said the government is targeting on ensuring quality and affordable price of milk; and a program to this effect would be unfolded in two weeks.
The Special Assistant said we are also shifting from non-promising crops to promising crops to meet the food demand of the country.
He said there has been an increase in prices of energy, food and mettle from 34 percent to 129 percent in the world, which made an impact on the prices in Pakistan.
