KARACHI: State Bank of Pakistan (SBP) on Tuesday issued following Karachi Interbank Offered Rates (KIBOR) on July 06, 2021.
| Tenor | BID | OFFER |
| 1 – Week | 6.90 | 7.40 |
| 2 – Week | 6.95 | 7.45 |
| 1 – Month | 7.01 | 7.51 |
| 3 – Month | 7.20 | 7.45 |
| 6 – Month | 7.41 | 7.66 |
| 9 – Month | 7.50 | 8.00 |
| 1 – Year | 7.57 | 8.07 |
KARACHI: In order to avail concessionary rate of duty and taxes, the Federal Board of Revenue (FBR) has made it mandatory for car manufacturers to pay KIBOR+3 on late delivery of motor vehicles.
In order to implement the decision, the FBR issued SRO 837(I)/2021. The FBR said: “The concessionary customs duty for various models of new entrants under Automotive Development Policy (ADP) 2016-21 to continue for five years from date of first manufacturing certificate of respective various issued by the Engineering Development Board (EDP) or up to June 30, 2026, whichever is earlier.
“The importer-cum-assembler or Original Equipment Manufacturer (OEM) shall pay KIBOR+3 per cent per annum to the customer against late delivery exceeding 60 days of initial booking on the whole of the deposited amount. Statement/details of reimbursement at KIBOR+3 per cent against deliveries beyond 60 days shall be submitted to EDB or Input-output Coefficient Organization (IOCO) bi-annually.”
KARACHI: The Pak Rupee depreciated by 19 paisas against the dollar on Tuesday owing to higher demand for import payments, dealers said.
The rupee ended at Rs158.37 to the dollar from the previous day’s closing of Rs158.18 in the interbank foreign exchange market.
The dealers said that payment demand for import had witnessed an increase as economic activities had gained momentum.
The dealers said that the rupee may rebound in the coming days owing to substantial inflows of export receipts and workers remittances.
KARACHI: The State Bank of Pakistan (SBP) on Tuesday issued customers’ exchange rates on the basis of weighted average rates of commercial banks.
The SBP said that the data is compiled and disseminated for information only. These Exchange Rates are an estimate of the Exchange Rates quoted by various Commercial Banks to their clients.
They are compiled from the Exchange Rate sheets issued daily by various Commercial Banks providing their indicative Exchange Rates for commercial transactions with customers.
| CURRENCY | BUYING | SELLING |
| AED | 43.0882 | 43.1824 |
| AUD | 119.9398 | 120.1974 |
| CAD | 128.4550 | 128.7341 |
| CHF | 171.8781 | 172.2541 |
| CNY | 24.5123 | 24.5644 |
| EUR | 188.0485 | 188.4634 |
| GBP | 219.6704 | 220.1619 |
| JPY | 1.4269 | 1.4301 |
| SAR | 42.1722 | 42.2629 |
| USD | 158.1294 | 158.4927 |
GWADAR: Prime Minister Imran Khan on Monday inaugurated the first phase of Gwadar Free Zone besides performing the groundbreaking of its second phase spread over 2,200 acres and also inaugurated three factories.
Addressing the launch of development projects and the signing ceremony of Memoranda of Understanding here in the port city, the prime minister said Gwadar would open up new avenues of opportunities for regional trade.
The prime minister said the future of Pakistan belonged to Gwadar, emerging as the ‘focal point of development’ and ensuring prosperity for the entire country.
Imran Khan mentioned the recently announced Rs 730 billion development budget for Balochistan by the federal government and said it was “historic”, and was aimed at uplift of the province and at mitigating the longstanding deprivation of its people.
“No country can progress unless it mainstreams all its areas and ensure development across the board,” he said, adding that connectivity was one of the major components of the Balochistan package.
The prime minister who arrived in Gwadar on a day-long visit inaugurated the first phase of Gwadar Free Zone besides performing the groundbreaking of its second phase spread over 2,200 acres also inaugurated three factories.
The prime minister said his vision of an emerging Pakistan was a steadfast nation that was committed to the prosperity of the country.
He said the government was focused on ensuring the provision of basic amenities in Gwadar and Balochistan, particularly clean water and electricity to encourage industrialization.
Imran Khan said the government was prioritizing development in far-flung areas of Balochistan, northern areas and rural Punjab.
The prime minister mentioned that Gwadar International Airport would encourage regional trade and boost economic activity.
He said a one-window operation was in progress to facilitate the investors and urged upon the provincial governments to ensure proper servicing of investors since the subject moved to them after the passage of the 18th Amendment.
Imran Khan thanked the government of China for the launch of water and solar projects in Balochistan, particularly in Gwadar.
“Pakistan can benefit from its strategic location and also from the expertise of its friend China, which is an economic power in the region,” he said.
He also mentioned the technical education provided by China to the youth of Gwadar, which he said, would prove greatly helpful as the foreign investment grew in future.
The prime minister mentioned several initiatives for the uplift of Gwadar including the university, employment under the Kamyab Jawan Programme, and the up-gradation of the equipment of local fishermen to ensure value addition of their catch.
He said the Prime Minister Office would regularly monitor the progress on the development plans initiated in Gwadar on a monthly basis.
The prime minister said regional countries had expressed interest in reaping the benefits offered by the Gwadar port.
In this scenario, he expressed concern over the deteriorating law and situation in Afghanistan, stressing peace and stability was extremely important for the continuity of development.
Chief Minister Balochistan Jam Kamal Khan said the provincial government had been collaborating with the CPEC Authority to resolve the issues of customs. He drew attention to the problem regarding the relocation of locals along Eastbay and mentioned that efforts were on for an amicable solution.
He said the Public Sector Development Programme for the current fiscal year covered the entire Balochistan and mentioned that the extension of Gwadar Hospital up to 200 beds, construction of the first university in Gwadar, border markets and uplift of villages were on the cards.
Chinese Ambassador Nong Rong said the cooperation between the governments of Pakistan and China had led several projects to see the light of the day. He said over the past eight years, the two countries accelerated their pace on several projects related to civic amenities, particularly clean water and solar plants.
He said Gwadar was a showcase of the “Chinese solution” for Pakistan’s development.
By taking a comprehensive way of development, he said, Gwadar Port would turn into a business hub. He said China would continue to extend support for a shared future with Pakistan.
Chairman CPEC Authority Lt Gen (retd) Asim Saleem Bajwa said the Gwadar Free Zone spread over 60 acres had been completed and 46 enterprises had become operational.
He said now, the groundbreaking of the second phase at the vast 2200 acres starting today would usher in a new era of prosperity in Gwadar and in Balochistan.
He mentioned that the personal interest of Prime Minister Imran Khan resulted in materialization of trans-shipment policy, Afghan transit policy, the framework signing and execution of border trade with Iran and the start of work at Eastbay Expressway.
He said several significant development projects were in progress including the Gwadar International Airport and a Vocational Institute to develop skills of the locals.
Bajwa said conspiracies were on the rise against CPEC, however, the commitment of the government greatly helped thwart such challenges.
Chairman Senate Sadiq Sanjrani, Foreign Minister Shah Mahmood Qureshi, Information Minister Chaudhry Fawad Hussain, Planning Minister Asad Umer, Minister for Defence Production Zubaida Jalal and Minister for Maritime Affairs Ali Zaidi were present.
Earlier, the prime minister before landing at the Gwadar Airport took an aerial view of the infrastructure built at the seaport including the Expressway.
On his arrival at the China Business Centre Hall, he was given a detailed briefing of the South Balochistan Development Package. He also held an interaction with the CPEC Workforce.
Chairman CPEC Authority and Chinese Ambassador ink Memoranda of Understanding for cooperation on development in Gwadar.
Moreover, seven regional countries including Saudi Arabia, United Arab Emirates, Kuwait, Oman, Egypt, Kenya and Qatar on Monday expressed their commitment for cooperation on the development of Gwadar.
With their respective ambassadors present at the ceremony attended by Prime Minister Imran Khan, the regional countries expressed their support for the development of Pakistan’s port city.
Prime Minister Imran Khan on the occasion also witnessed the signing of two Memoranda of Understanding with the government of China for carrying out development projects in Gwadar.
The accords included the implementation agreement on setting up of 1.2 MGD desalination plant to resolve the shortage of drinking water for the residents of Gwadar.
Other agreements included China’s grant for solar generators for South Balochistan, and the groundbreaking of North Gwadar Free Zone and Enterprises.
Also on the occasion, the Chinese investors through video-link from Shanghai showed the ‘Expression of Commitment for Investment’. Those who pledged to invest in Balochistan’s different sectors included Huang Weiguo (textile), Huang Daoyuan (prefabricated technology), Fang Hongyan (agriculture), Shen Jian (wool spinning), David Dia and Chen Yi (dairy processing) and Bao Dequan (textile).
The factories inaugurated on the occasion included the chemical fertilizer factory, Gwadar Animal Vaccination factory and lubricant factory, besides the opening of Gwadar Fertilizer Plant, Gwadar Animal Vaccine Plant, Henan Agricultural Industrial Park, Hengmei Lubricants Plant, Gwadar Free Zone Phase-2, and Gwadar Expo Centre.
(Courtesy: Associated Press of Pakistan)
ISLAMABAD: Work for Iran’s trade through the Gwadar Port (in and out) is in progress and the trade will start soon through the port, Chairman China Pakistan Economic Corridor (CPEC) Authority Lt. Gen. (Retd) Asim Saleem Bajwa said on Monday.
“The Ramadan-Gabd crossing point near Gwadar is active and fully functional now, fencing work with Pakistan-Iran border is going on rapidly and new border markets are being established at the crossing points,” he said adding the smuggling to and from Iran is decreasing due to increase in regulated trade.
According to state media, the Chairman said after completion of development works of Gwadar Port and first phase of Gwadar Free Zone, Prime Minister Imran Khan was going to perform the ground breaking of second phase of the Zone.
He said as compared to the first phase which comprised of 60 acres of land, the second phase would be a huge project comprising of 2200 acres of land.
Chairman Bajwa said around 7 to 8 big Chinese investors from Shanghai would also participate in the ground breaking ceremony where they would make commitments in Gwadar Zone and inform about their future plans in Pakistan.
He said some 46 enterprises were engaged in the Free Zone phase-I while 12 factories were being established out of them three were completed.
He informed that the traffic at the port was increasing everyday and last year the trade volume increased by hundreds of times as 60,000 MT of cargo was transported during the year 2020-21 compared to only 1300 MT in the preceding year.
Besides, he said five LPG vessels were berthed at the Gwadar Port.In future, he said the cargo volume would increase with even higher pace as interest for transshipment and industrialization was increasing with every passing day.
He said the Prime Minister would also sign an accord for installation of desalination plant in the city with capacity of 1.2 million gallons per day. He said the project would complete within a year and this would be a gift from the Chinese government.
Furthermore, he said another water desalination plant with capacity of five million gallons per day was also included in the Prime Minister South Balochistan package.
Provision of basic facilities including electricity, water and health was the prime focus of Prime Minister Imran Khan, he added.
ISLAMABAD: The Federal Board of Revenue (FBR) has prescribed minimum production of steel products for payment of sales tax under Thirteenth Schedule of Sales Tax Act, 1990.
According to Finance Act, 2021 an amendment has been made to Section 3 of the Sales Tax Act, 1990 in respect of goods, specified in the Thirteenth Schedule, the minimum production for a month shall be determined on the basis of a single or more inputs as consumed in the production process as per criterion specified in the Thirteenth Schedule and if minimum production so determined exceeds the actual supplies for the month, such minimum production shall be treated as quantity supplied during the month and the liability to pay tax shall be discharged accordingly.
In the Thirteenth Schedule following has been inserted:
Minimum production of steel products.—
The minimum production for steel products shall be determined as per criterion specified against each in the Table below:
| S. No. | Product | Production criteria |
| (1) | (2) | (3) |
| 1. | Steel billets and ingots | One metric ton per 700 kwh of electricity consumed |
| 2. | Steel bars and other re-rolled long profiles of steel | One metric ton per 110 kwh of electricity consumed |
| 3. | Ship plates and other re-rollable scrap | 85% of the weight of the vessel imported for breaking”; and |
Procedure and conditions:—
(i) both actual and minimum production and the local supplies shall be declared in the monthly return. In case, the minimum production exceeds actual supplies for the month, the liability to pay tax shall be discharged on the basis of minimum production:
Provided that in case, in a subsequent month, the actual supplies exceed the minimum production, the registered person shall be entitled to get adjustment of excess tax on account of excess of minimum production over actual supplies:
Provided further that in a full year, as per financial year of the company or registered person, or period starting from July to June of next year, in other cases, the tax actually paid shall not be less than the liability determined on the basis of minimum production for that year and in case of excess payment no refund shall be admissible:
Provided also that in case of ship-breaking, the liability against minimum production, or actual supplies, whichever is higher, shall be deposited on monthly basis on proportionate basis depending upon the time required to break the vessel;
(ii) the payment of tax on ship plates in aforesaid manner does not absolve ship breakers of any tax liability in respect of items other than ship plates obtained by ship-breaking;
(iii) the melters and re-rollers employing self-generated power shall install a tamperproof meter for measuring their consumption. Such meter shall be duly locked in room with keys in the custody of a nominee of the Commissioner Inland Revenue having jurisdiction.
The officers Inland Revenue having jurisdiction shall have full access to such meter;
(iv) the minimum production of industrial units employing both distributed power and self-generated power shall be determined on the basis of total electricity consumption.
ISLAMABAD: The online market places have been brought into the tax net as through the Finance Act, 2021 the owner of online market place has been made withholding agent and made responsible for collecting withholding tax at two per cent on sales made through digital platform.
A new definition has been including in the Sales Tax Act, 1990 through the Finance Act, 2021, which stated: online market place includes an electronic interface such as a market place, e-commerce platform, portal or similar means which facilitate sale of goods, including third party sale, in any of the following manner, namely:—
(a) by controlling the terms and conditions of the sale;
(b) authorizing the charge to the customers in respect of the payment for the supply; or
(c) ordering or delivering the goods.
In the Eleventh Schedule of the Sales Tax Act, 1990, the owner of online market place shall collect two per cent of gross value of supplies from persons other than active taxpayers.
However, the law explained that the provision of this entry would be effective from the date as notified by the FBR.
ISLAMABAD: Federal Board of Revenue (FBR) has said that international buying house act as facilitator for exports from Pakistan to their principals abroad.
“In order to reduce disputes the amount remitted in foreign exchange to meet the expense of these buying houses by their principals has been exempted from tax,” the FBR said while explaining the major changes to Income Tax Ordinance, 2001 through Finance Act, 2021.
Moreover, the salary of non-resident foreign experts employed/ engaged by international buying houses has been exempted from tax if such experts perform duties for these international buying houses. These exemptions have been incorporated in clause (149) of Part I of the Second Schedule to the Ordinance.
According to amended clause 149:
Any sum—
(i) remitted to Pakistan through banking channels in foreign currency received by an international buying house from its non-resident principal to meet its expenses in Pakistan; and
(ii) chargeable under the head “Salary” received by a person who, not being a citizen or resident of Pakistan, is engaged as an expert by an international buying house.
Explanation.—For the purpose of this clause international buying house means persons acting as buying offices, buyers’ agents, or representatives of international buyers for facilitating exports from Pakistan and are registered as liaison offices with Board of Investment or companies registered with SECP. Provided that such buying houses act as cost centers with the sole purpose to bring export orders to Pakistan on behalf of their principals and do not enter into any local business transactions in Pakistan and their expenses are remitted to Pakistan.
ISLAMABAD: Federal Board of Revenue (FBR) has said that exemption from withholding tax has been granted on purchase of used motor vehicles from general public.
The FBR while explaining major changes made to Income Tax Ordinance, 2001 through Finance Act, 2021 said that used vehicle market is working in an undocumented environment.
In order to promote documentation and corporatization of this sector has been granted exemption from withholding tax on the purchase of used vehicle from general public and reduced minimum turnover tax from 1.5 per cent to 0.25 per cent .
“Necessary changes have been made in clause (45B) of Part IV of Second schedule,” the FBR said.