Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Updated rates of regulatory duty on import of motor vehicles into Pakistan

    Updated rates of regulatory duty on import of motor vehicles into Pakistan

    The Federal Board of Revenue (FBR) has issued latest rates of regulatory duty applicable on import of motor vehicles into Pakistan. The rates are applicable from July 01, 2021.

    In order to apply the rates of the regulatory duty the FBR issued SRO 840(I)/2021 dated June 30, 2021.

    Following are the rates of regulatory duty on motor vehicles, along with HS Code, description and rate of regulatory duty:

    8703.2193 New 4×4 vehicles in completely built unit (CBU):  15 per cent

    8703.2195 New Mini vans (CBU): 15 per cent

    8703.2199 Other (New): 15 per cent

    8703.2220 New Vehicles of a cylinder capacity exceeding 1000cc but not exceeding 1300cc: 15 per cent

    8703.2240 New Mini vans (CBU): 15 per cent

    8703.2260 New Sport utility vehicles: 15 per cent

    8703.2290 Other (New): 15 per cent

    8703.2313 New Sport utility vehicles: 15 per cent

    8703.2319 Other (New): 15 per cent

    8703.2323 New Sport utility vehicles (SUVs 4×4): 90 per cent

    8703.2323 Old and used sport utility vehicles 1801cc to 3000cc: 70 per cent

    8703.2329 Other (New): 90 per cent

    8703.2329 Old and used cars and Jeeps 1801 cc to 3000cc: 70 per cent

    8703.2490 Other (New): 90 per cent

    8703.2490 Old and used cars and jeeps above 3000 cc: 70 per cent

    8703.3129 Other (New): 15 per cent

    8703.3139 Other (New): 15 per cent

    8703.3219 Other (New): 15 per cent

    8703.3223 New Sport utility vehicles (SUVs 4×4): 90 per cent

    8703.3223 Old and used sport utility vehicles above 2000cc: 70 per cent

    8703.3225 New All-terrain vehicles (4×4): 90 per cent

    8703.3225 Old and used All terrain vehicles (CBU): 70 per cent

    8703.3229 Other (New): 90 per cent

    8703.3229 Old and used cars and jeeps above 2000 cc: 70 per cent.

  • SBP issues customers exchange rates on July 09, 2021

    SBP issues customers exchange rates on July 09, 2021

    KARACHI: The State Bank of Pakistan (SBP) on Friday 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.

     CURRENCYBUYINGSELLING
    AED43.344243.4384
    AUD118.1171118.3681
    CAD126.9385127.2075
    CHF173.6407174.0180
    CNY24.556524.6066
    EUR188.2594188.6806
    GBP219.0967219.5843
    JPY1.44581.4490
    SAR42.416942.5099
    USD159.0709159.4342
  • Cable TV operators granted exemption of sales tax on services

    Cable TV operators granted exemption of sales tax on services

    KARACHI: The Sindh government has exempted sales tax on services for one year for cable TV operators within the jurisdiction of the province.

    The Sindh Revenue Board (SRB) has issued a notification to further exempt the sales tax on services rendered by cable TV operators till June 30, 2022.

    The Sindh government imposed sales tax on services rendered by cable TV operators through a notification issued on June 27, 2019. However, since then the levy has been exempted. Through a new notification the exemption is further extended for one more year till June 30, 2022.

    According to the amended notification:

    The provincial government has exempted Sindh sales tax on such of the services provided or rendered by Cable TV Operators, as are classified under tariff heading 9819.9000 of the Second Schedule to the said Act, subject to the conditions that such service provider:-

    (a) is registered with the Board in terms of section 24 of the Act and has shown the services of “Cable TV Operators” of tariff heading 9819.9000 as his “Principal Activity” in row No. 12 of the Registration Form SST-01:

    Provided that where the service provider also provides other taxable services including the services of “advertisement on Cable TV network” of tariff heading 9802.5000, he shall also inter-alia indicate the economic activity of such taxable services in the relevant column of Activity Code of “Other Business Activities” in row No. 19 of the Registration Form SST-01;

    (b) is a stand-alone service provider of the taxable service of “Cable TV Operators” of tariff heading 9819.9000.

    Explanation: For the purposes of this notification, a “stand-alone” service provider means a person whose principal activity is the provision of services of “Cable TV Operators” of tariff heading 9819.9000 and whose other service-related business activity, if any, is restricted to the provision of the taxable services of “advertisement on Cable TV network” of tariff heading 9802.5000. Persons providing or rendering taxable services of any of the tariff headings, other than those of tariff headings 9802.5000 and 9819.9000, shall not be eligible to the benefits of this notification:

    Provided that nothing contained in this notification shall be construed to be exempting the taxable services of “advertisement on Cable TV network” classified under tariff heading 9802.5000 even if provided or rendered by such a stand-alone service provider;

    (c) e-files his tax returns (Form SST-03) regularly in the prescribed manner, showing the details of his exempt services of Cable TV Operators (tariff heading 9819.9000) and also of other taxable services including the taxable services of advertisements on Cable TV (tariff heading 9802.5000) therein:

    Provided that the tax returns for the tax periods July, 2016 to June 2021, if not filed earlier, shall be e-filed by the stand-alone service provider on or before the 31st day of July, 2021;

    (d) e-deposits his tax liability on the taxable services, including the taxable services of “advertisement on Cable TV network” (tariff heading 9802.5000), regularly in the prescribed manner:

    Provided that the tax liability for the tax periods July, 2016 to June, 2021, if not paid earlier, shall be e-deposited by the stand-alone service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 31st day of August, 2021; and

    (e) complies with the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, in relation to the taxable services, including the taxable service of advertisement on Cable TV network (tariff heading 9802.5000), as are provided or rendered by him and e-deposits the amounts of Sindh sales tax involved, in case such amounts are or were not deducted or withheld by the service recipient or the withholding agent in terms of the said Rules:

    Provided that the liability of Sindh sales tax under the aforesaid Sindh Sales

    Tax Special Procedure (Withholding) Rules, 2014, for the tax periods July, 2016 to June, 2021, if not paid earlier, shall also be e-deposited by the stand-alone service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 31st day of August, 2021.

    This notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax already paid or deposited by him in Sindh Government’s head of account “B- 02384” on any day prior to the date of this notification.

    This notification shall take effect from the 1st day of July, 2018, and, if not rescinded earlier, shall stand rescinded on the 30th day of June, 2022.

  • Sindh allows reduced rate of 5% sales tax on services to recruiting agencies

    Sindh allows reduced rate of 5% sales tax on services to recruiting agencies

    KARACHI: The Sindh government has allowed payment of sales tax on services at reduced rate of five per cent to recruiting agencies subject to terms and conditions.

    A notification issued by the Sindh Revenue Board (SRB) stated that the provincial government had allowed the sales tax on the services provided or rendered by the recruiting agents, as are classified under tariff heading 9805.6000 of the Second Schedule to the said Sales Tax on Services Act, 2011 and are also restricted to recruitment of persons or group of persons for employment outside Pakistan, shall be charged, levied and collected at a lower rate of 5% during the tax periods of the financial year 2021-22 subject to the conditions that such a service provider:-

    (a) is registered with the Board in terms of section 24 of the Act and has shown the services of “Recruiting agents” of tariff heading 9805.6000 as his Principal Activity in his Registration Form SST-01:

    Provided that where the service provider also provides any other taxable services as described in the Second Schedule to the Act, he shall inter-alia indicate the economic activity of such services in the relevant column of Activity Code of Other Business Activities, as provided in row number 19 of the Registration Form SST-01, read with the provisions of sub-rule (3) of rule 4 of the Sindh Sales Tax on Services Rules, 2011;

    (b) is a stand-alone service provider of the taxable service of “recruiting agents” of tariff heading 9805.6000.

    Explanation: For the purposes of this notification, a “standalone service provider” means a person whose principal economic activity is the provision of services of “Recruiting agents” of tariff heading 9805.6000, and such economic activity of the provision of the services of recruiting agency is related to recruitment of persons or group of persons for overseas employment in countries outside Pakistan:

    Provided that the services provided or rendered by such recruiting agents in relation to recruitment of persons or group of persons for employment in Pakistan shall continue to be levied to tax at the rate of 13 per cent:

    Provided further that where a recruiting agent provides or renders any of the taxable service not classified under the aforesaid tariff heading 9805.6000, he shall pay the tax relatable to such services (other than the services of tariff heading 9805.6000) at the rate(s) applicable to the tariff heading(s) relatable to such other services;

    (c) e-deposits his tax liability on the taxable services regularly in the prescribed manner:

    Provided that the tax liability for the tax periods upto June, 2021, if not paid earlier, shall be e-deposited by the service provider in Sindh Government’s head of account “B-02384” in the prescribed manner by the 15th day of July, 2021;

    (d) e-files his tax returns (Form SST-03) regularly, in the prescribed manner;

    (e) showing the details of his services liable to statutory rates of tax and also to reduced rates of tax, separately, in the same return:

    Provided that the tax returns for the tax periods prior to June, 2021, if not filed earlier, shall be e-filed by the service provider on or before the 20th day of July, 2021; and

    (f) complies with the provisions of the Sindh Sales Tax on Services Act, 2011, and the rules and notifications issued thereunder.

    This notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax.

    This notification, if not rescinded earlier, shall stand rescinded at 23:59 hours of the —30th day of June, 2022.

  • Taxpayers require to declare assets, income along with annual return

    Taxpayers require to declare assets, income along with annual return

    ISLAMABAD: A statement of wealth is mandatory for filing annual income tax return, which should include details of total assets and liabilities.

    The FBR has opened the IRIS portal for filing income tax return for tax year 2021 for taxpayers including salaried persons, business individuals, Association of Persons (AOPs) and companies have special tax year. The last date for filing the tax return for such taxpayers is September 30, 2021.

    Officials in the FBR said that the taxpayers are required to file wealth statement as well along with the annual return of income for tax year 2021.

    According to Section 116 of Income Tax Ordinance, 2001, the wealth statement is a must document to complete the income tax return.

    The section stated as:

    Wealth statement.— (1) The Commissioner may, by notice in writing, require any person being an individual to furnish, on the date specified in the notice, a statement (hereinafter referred to as the “wealth statement”) in the prescribed form and verified in the prescribed manner giving particulars of —

    (a) the person’s total assets and liabilities as on the date or dates specified in such notice;

    (b) the total assets and liabilities of the person’s spouse, minor children, and other dependents as on the date or dates specified in such notice;

    (c) any assets transferred by the person to any other person during the period or periods specified in such notice and the consideration for the transfer;

    (d) the total expenditures incurred by the person, and the person’s spouse, minor children, and other dependents during the period or periods specified in the notice and the details of such expenditures; and

    (e) the reconciliation statement of wealth.

    (2) Every resident taxpayer being an individual filing a return of income for any tax year shall furnish a wealth statement and wealth reconciliation statement for that year along with such return:

    Provided that every member of an association of persons shall also furnish wealth statement and wealth reconciliation statement for the year along with return of income of the association.

    (3) Where a person, who has furnished a wealth statement, discovers any omission or wrong statement therein, he may, without prejudice to any liability incurred by him under any provision of this Ordinance, furnish a revised wealth statement along with the revised wealth reconciliation and the reasons for filing revised wealth statement, under intimation to the Commissioner in the prescribed form and manner, at any time before the receipt of notice under sub-section (9) of section 122, for the tax year to which it relates:

    Provided that where the Commissioner is of the opinion that the revision under this sub-section is not for the purpose of correcting a bona fide omission or wrong statement, he may declare such revision as void through an order in writing after providing an opportunity of being heard.

    Explanation.- For the removal of doubt it is clarified that wealth statement cannot be revised after the expiry of five years from the due date of filing of return of income for that tax year.

  • Pakistan, Afghanistan sign protocol to extend transit trade agreement for six months

    Pakistan, Afghanistan sign protocol to extend transit trade agreement for six months

    ISLAMABAD: Pakistan and Afghanistan on Thursday signed a protocol to extend the existing transit trade agreement of 2010 for six months beyond May 11, 2021.

    The extension was essential to facilitate uninterrupted flow of transit trade between the two countries and to provide sufficient time to technical teams to conclude negotiations on the new APTTA 2021.

    Advisor to PM on Commerce and Investment Abdul Razak Dawood and Afghan Minister for Industry and Commerce Nisar Ahmad Faizi Ghoryani chaired a virtual signing ceremony.

    Secretary Commerce of Pakistan and Deputy Commerce Minister of Afghanistan also attended the ceremony.

    Ambassador of Pakistan along with Trade & Investment Counselor in Kabul represented the Government of Pakistan in the ceremony held at the Ministry of Industry and Commerce in Kabul, a press release issued by the Embassy of Pakistan in Kabul said.

    The Ministers appreciated the work of technical teams for the progress attained so far in the negotiations.

    They directed the technical teams to forge consensus on the outstanding issues in the new APTTA 2021, to ensure its conclusion, signing and notification at the earliest for the benefit of trade, transit, investment and connectivity between the two brotherly countries.

    The Ministers also agreed to meet in Kabul on the sidelines of 9th Afghanistan Pakistan Transit Trade Coordination Authority (APTTCA) meeting to push forward the negotiations on APTTA 2021 and also to hold business and investment conference in August, 2021.

  • Jazz awarded contract worth Rs154 million

    Jazz awarded contract worth Rs154 million

    ISLAMABAD: The Universal Service Fund (USF) has awarded contract worth around Rs154 Million to Jazz for providing High Speed Mobile Broadband services in Multan and Khanewal Districts of Southern Punjab.

    Federal Minister for Information Technology and Telecommunication, Syed Amin Ul Haque and Foreign Minister, Shah Mahmood Qureshi witnessed the contract signing ceremony here on Thursday.

    The contract was signed by Haaris Mahmood Chaudhary, CEO, USF with Aamir Ibrahim, CEO, Jazz.

    The Federal Secretary for IT & Telecommunication and Chairman USF Board, Dr. Muhammad Sohail Rajput and Parliamentary Secretary, Zain Qureshi, Member Telecom Muhammad Umar Malik, Member IC Ajmal Awan and other senior officers of MoITT were also present at the ceremony.

    While addressing the ceremony, Federal Minister for IT and Telecommunication, Syed Amin Ul Haque said that, MoITT through USF has contracted projects worth approximately Rs6.5 billion to provide high speed internet to 3.8 million people in Southern Punjab.

    These include six high speed mobile broadband projects and three optic fiber cable projects. According to Syed Amin Ul Haque, under these projects, we are spending a total of Rs708 million for provision of high speed broadband services in three districts of Bahawalpur, Bahawalpur, Rahim Yar Khan and Bahawalnagar. About 2.6 million people living in 846 villages will benefit from this. Similarly, in Dera Ghazi Khan Division, four districts DG Khan, Layyah, Muzaffargarh and Rajanpur, Rs141 million is being spent. While Rs4.47 billion is being spent on three projects related to the laying of optical fiber cable.

    With the completion of these projects, an area of about 2, 000 sq. km will be connected with OFC. More than 25 per cent work has been done on broadband services projects.

    Completion of these projects will provide the fastest broadband services to 393 villages with a population of over 0.85 million.

    While addressing the ceremony, Foreign Minister, Shah Mahmood Qureshi said that he was pleasantly surprised to hear the performance of the MoITT which is working day and night for the fulfillment of the Prime Minister’s Digital Pakistan vision. He thanked the Federal Minister, Syed Amin Ul Haque for initiating the development projects in Southern Punjab and said that the Ministry of Foreign Affairs would provide all possible assistance and support for the promotion of IT industry and showcasing of Pakistani IT products around the world because Ministry of IT is at the forefront of those sectors through which numerous job opportunities and the country’s economy can be strengthened.

    Sharing his views on the development, CEO-Jazz, Aamir Ibrahim said, “Jazz has invested US$ 462 million during the last two years mainly to expand its 4G footprint in rural and semi-urban areas. This is in line with our mission to bridge the digital divide and to collaborate with the Government of Pakistan in helping realize the Digital Pakistan vision.

    Today’s contract signing is a testament of our commitment to create ICT-led socioeconomic opportunities for the masses.” Earlier on his welcome address, CEO-USF, Haaris Mahmood Chaudhary said: “The USF is committed in its resolve to empower the marginalized communities of Pakistan. This project will benefit an unserved population of 0.48 million in 170 unserved mauzas, thereby covering an unserved area of 1,323 sq. km. of Multan and Khanewal districts. The project will be completed in 12 months.”

  • Grant of 10% increase in pension notified

    Grant of 10% increase in pension notified

    ISLAMABAD: The federal government on Thursday notified the grant of 10 per cent increase in pension of all government pensioners with effect from July 01, 2021.

    The finance ministry said that the President has sanctioned an increase at 10 per cent of net pension with effect from July 01, 2021 until further orders to all Civil pensioners of the Federal Government including Civilians paid from Defence Estimates as well as retired Armed Forces personnel and Civil Armed Forces Personnel.

    The ministry said that the previous increase in pension would be admissible to the new pensioners who would retire on or after July 01, 2021.

    The latest 10 per cent increase in pension as will also be admissible to the pensioners who would retire on or after July 01, 2021.

    For the purpose of admissibility of increase in pension sanctioned in this O.M. the term “Net Pension” means “Pension being drawn” minus “Medical Allowance”.

    The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.

    lf the gross pension sanctioned by the Federal Government is shared with any Government in Accordance with the rules laid down in part-iv of Appendix-lll to the Accounts Code, Volume-I, the amount of the increase in pension will be apportioned between the Federal Government and the other Government concerned on proportionate basis.

    The increase in pension sanctioned in this O.M. will not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance and monetized value of a driver or an orderly.

    The benefit of increase in pension sanctioned in this O.M. will also be admissible to those Civil Pensioners of the Federal Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15.08.1947 and are not entitled to, or are not in receipt of pension increase under the British Government’s Pension (increase) Acts. The payment will be made at the applicable rate of exchange.

  • Pakistan receives $1 billion loan from China; forex reserves rise to $24.415 billion

    Pakistan receives $1 billion loan from China; forex reserves rise to $24.415 billion

    KARACHI: Pakistan has received $1 billion as loan from China which helped the total foreign exchange reserves of the country rose to $24.415 billion by week ended July 02, 2021.

    Pakistan also received an amount of $440 million loan from the World Bank during the week, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $23.297 billion by the week ended June 25, 2021.

    The foreign exchange reserves of the State Bank increased by $1.112 billion to $17.231 billion by the week ended July 02, 2021 as compared with $16.119 billion a week ago.

    The foreign exchange reserves held by the commercial banks witnessed an increase of $6 million to $7.184 billion by the week ended July 02, 2021 as compared with $7.178 billion a week ago.

  • Notification for 10% ad hoc increase in salary issued

    Notification for 10% ad hoc increase in salary issued

    ISLAMABAD: The President of Pakistan has sanctioned the grant of ad hoc 10 per cent increase in salary of government employees effective from July 01, 2021, according to a notification issued by the ministry of finance on Thursday.

    It said that the president has been pleased to sanction with effect from July 01, 2021 and till further orders, an ad hoc relief allowance 2021 at 10 percent of basic pay to all the federal government employees i.e. armed forces personnel, civil armed forces and civil employees of the federal government as well as the civilians paid from defence estimates including contingent paid staff and contract employees employed against civil posts in basic pay scales on standard terms and conditions of contract appointment.

    The amount of ad hoc relief allowance 2021:

    i. will be subject to income tax;

    ii. will be admissible during leave and entire period of LPR except during extra ordinary leave;

    iii. will not be treated as part of emoluments for the purpose of calculation of pension/gratuity and recovery of house rent;

    iv. will not be admissible to the employees during the tenure of their posting/deputation abroad; and

    v. will be admissible to the employees on their repatriation from posting/deputation abroad at the rate and amount which would have been admissible to them had they not been posted abroad.

    The finance ministry said that the term ‘basic pay’ for the purpose of ad hoc relief allowance 2021 will also include the amount of the personal pay granted on account of annual increment(s) beyond the maximum of the existing pay scales.