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Author: Mrs. Anjum Shahnawaz

  • Petroleum prices increased for next fortnight

    Petroleum prices increased for next fortnight

    ISLAMABAD: The federal government on Tuesday announced increase in prices of petroleum products for next fortnight effective June 16, 2021.

    According to a notification issued by the finance division, the new prices of the petroleum products coming into effect from June 16, 2021, for the next fortnight, are as follow:

    The price of petrol has been increased by Rs2.13 to Rs110.69 per liter from Rs108.56 per liter.

    The price of high speed diesel oil (HSD) has been increased by Rs1.79 to Rs112.55 per liter from Rs110.76 per liter.

    The rate of kerosene oil has been increased by Rs1.89 per liter to Rs81.89 per liter from Rs80 per liter.

    Similarly, the rate of light diesel oil has been increased by Rs2.03 to Rs79.68 per liter from Rs77.65 per liter.

  • Sindh announces 20 percent increase in salary

    Sindh announces 20 percent increase in salary

    KARACHI: The Sindh government on Tuesday announced a 20 percent increase in basic salary of all government employees.

    Sindh Chief Minister Syed Murad Ali Shah while presenting the provincial budget 2021/2022, said that the output of the government is directly related to the performance of every individual employee.

    For next financial year 2021/2022, the government is proposing an increase on 20 percent in the basic salary of all employees.

    For the welfare of the labor class and in line with increase in pay of government employees, the minimum wage rate is also being increased from Rs.17,500 to Rs.25,000 per month

    In order to remove discrepancy and bridge the gap between gross salary and minimum wages i.e Rs.25,000, a Personal Allowance is proposed for employees of Government of Sindh in BPS-01 to BPS-05. The fixed rate of Personal Allowance will be as under

     BPS-01 Rs.1900/- per month

     BPS-02 Rs.1500/- per month

     BPS-03 Rs.900/- per month

     BPS-04 Rs.250/- per month

     BPS-05 Rs.250/- per month

    Moreover, 10 percent increase in pension is also proposed for next financial year 2021-22 for employees of Government of Sindh

  • Sindh presents Rs1.477 trillion budget for 2021/2022

    Sindh presents Rs1.477 trillion budget for 2021/2022

    KARACHI: Chief Minister Sindh Syed Murad Ali Shah on Tuesday presented provincial budget for fiscal year 2021/2022. The total outlay of the budget is Rs1.477 trillion with a deficit of Rs25.7 billion.

    The provincial government announced an increase of 20 percent in government employees and 10 percent increase in pension. Besides, minimum wage has been increased to Rs25,000 from Rs17,500.

    Murad Ali Shah said that the total budget outlay for financial year 2021-22 has been estimated at Rs.1.477 trillion, as against budget estimate of Rs.1.241 trillion for the outgoing financial year, showing overall increase of 19 percent.

    The current expenditure of the province is projected at Rs.1.14 trillion, which includes current revenue expenditure of Rs.1.089 trillion and current capital expenditure of Rs.59.49 billion.

    “This is 78 percent of total expenditure of the province and shows an increase of 14 percent over estimates of Rs.1 trillion for last year,” he said.

    It is important to highlight here that for the next financial year; the provincial government has tried to align development as well as non-development expenditure priorities in line with the post COVID-19 situation, he added.

    The chief minister said that the total receipts of province for Financial Year 2021-22 have been estimated at Rs.1.452 trillion as against budget estimate of Rs.1.22 trillion for CFY, showing overall increase of 19 percent.

    Receipts from Federal Government on account of revenue assignment, straight transfers and grants are estimated at Rs.869.68 billion, which constitute 72.5% of total receipts of the province.

    It is an increase of 12.6%, over estimates of Rs.760.3 billion last year. However, the budget estimates of straight transfers for next FY have decreased substantially by approximately 20.6% to Rs.49.5 billion from the budget estimates of Rs.62.34 billion of current financial year. Receipts of Federal PSDP are estimated at Rs.5.37 billion. Receipts on account of Foreign Project Assistance (FPA), budgetary support loans and grants are estimated at Rs.71 billion. Receipts from provincial own sources on account of tax and non-tax receipts are estimated at Rs.329.033 billion, which constitute 27.5% of total receipts. This is an increase of 4.8% over estimates of Rs.313.4 billion of CFY.

    The development expenditure of the province is estimated at Rs.329.032 billion, which include Rs.222.5 billion for Provincial Annual Development Plan (ADP) and Rs.30 billion for districts ADP, foreign project assistance of Rs.71.16 billion and Rs.5.4 billion from Federal PSDP Grant for schemes being executed by the government of Sindh.

    Murad Ali Shah said that in financial year 2021-22, around 1033 schemes have been identified for completion in first and second quarter and maximum resources will be provided for their timely completion.

    On-Going schemes with remaining throw-forward up to Rs.100 million have been fully funded for completion by June, 2022. On-Going Schemes where 70 percent expenditure is made have been fully funded for completion by June 2022.

    He said that the output of government is directly related to the performance of every individual employee. “All the employees of the provincial government have my gratitude,” he added.

    For next financial year we are proposing an increase on 20 percent in the basic salary of all employees. For the welfare of the labor class and in line with increase in pay of government employees, the minimum wage rate is also being increased from Rs.17,500 to Rs.25,000 per month

  • Tarin directs FBR to ensure tracking progress of installed POS machines

    Tarin directs FBR to ensure tracking progress of installed POS machines

    ISLAMABAD: Minister for Finance and Revenue Shaukat Tarin on Tuesday directed the tax authorities to ensure effective tracking progress of installed Point of Sale (POS) machines and provide post deployment support to the retailers.

    He further directed to determine the total volume of sales by retailers to effectively tap the revenue generation through POS system after adjustment of input and output taxes. He directed to establish a cell at FBR HQ to fast track the progress on POS integration.

    Minister for Finance & Revenue Shaukat Fayaz Ahmed Tarin visited FBR Headquarters on Tuesday and held a meeting with FBR officers.

    The agenda of the meeting was to devise a strategy to increase integration of retailers with the Point of Sales System of FBR.

    The meeting also discussed the way forward to bring identified potential taxpayers into tax net. Special Assistant to the Prime Minister on Finance & Revenue Dr. Waqar Masood Khan and Chairman FBR Asim Ahmad along with other members of FBR were present in the meeting.

    Chairman FBR while briefing said that the licensing of IT companies for installation and configuration of POS System would be completed by the end of August.

    He further briefed that monitoring cells would be formed in each RTO headed by respective Chief Commissioner to supervise the POS integration for achieving desired results. Minister for Finance and Revenue directed to ensure effective tracking progress of installed POS machines and provide post deployment support to the retailers. He further directed to determine the total volume of sales by retailers to effectively tap the revenue generation through POS system after adjustment of input and output taxes. The finance minister directed to establish a cell at FBR HQ to fast track the progress on POS integration.

    The meeting under the Chair of Minister for Finance & Revenue also discussed the strategy to increase the tax net possibilities.

    FBR Team briefed that sizeable number of potential taxpayers have been identified after retrieving available data of their withholding taxes through third party sharing.

    Chairman FBR briefed that efforts are being made to bring all the identified potential taxpayers into tax net. Minster for Finance and Revenue directed to remove all hurdles in bringing the identified potential taxpayers into tax net. He directed to further identify the potential taxpayers on the basis of third party data being received through credible sources.

    The Minister stressed on the need to finalize the modalities of third party audit which would not only increase the tax net but would also generate much needed revenue. The meeting ended after it was decided to hold regular meetings to pursue the targets on fast track basis.

  • Rupee falls by 60 paisas against dollar

    Rupee falls by 60 paisas against dollar

    KARACHI: The Pak Rupee fell by 60 paisas against the dollar on Tuesday owing to high for import and corporate payments.

    The rupee ended Rs156.79 to the dollar from previous day’s closing of Rs156.19 in the interbank foreign exchange market.

    Currency dealers said that the due to import and corporate payments the rupee was remained under pressure.

    They said that the demand for dollar was increased as multinational companies and foreign companies operating in Pakistan repatriate their profit and dividends by end of fiscal year.

  • Punjab allows stamp duty incentive worth Rs40 billion to promote construction sector

    Punjab allows stamp duty incentive worth Rs40 billion to promote construction sector

    LAHORE: The Punjab government has granted an incentive in stamp duty worth Rs40 billion during fiscal year 2021/2022 to encourage new investment in construction sector.

    The provincial government announced incentives at the budget 2021/2022 that was presented on Monday.

    The provincial minister announced tax concessions worth Rs50 billion during the fiscal year starting from July 01, 2021.

    The minister said that an amount of Rs40 billion would be granted as tax incentive for construction sector during the next fiscal year. This concession would be available by maintaining stamp duty at one percent during the next fiscal year.

    The provincial government decided to continue reduced rate of sales tax on services from 16 percent to five percent during the next fiscal year. The reduced rate of sales tax would be available on services included small hotels, guest houses, marriage halls, lawns, caterers, IT services, tour operators, jims, property dealers, rent a car service, cable tv oprators, treatment of textile and leather, commission agent of commodity operation, auditing accounting and tax consultancy services, photography and parking services etc.

    In addition to mentioned above services, the provincial government decided to add more 10 services into reduced rate of tax regime. The government allowed reduced rate of sales tax on services from 16 percent to 5 percent to beauty parlor, fashion designers, home chefs, architects, laundries and drycleaners, supply of machinery, warehouse, dress designers and rental bulldozers etc.

    The government decided to reduced sales tax rate from 19 percent to 16 percent on call centers.

  • FBR explains exemption withdrawal not new tax

    FBR explains exemption withdrawal not new tax

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday explained that withdrawal of exemption and concession does not mean imposition of new taxes.

    Clarifying to a news report, the FBR said that withdrawal of exemption and reduced rates should not be confused with imposition of new taxes.

    It is very clearly and candidly informed that the present budget proposals do not contain any new item for taxation of pensions or major components of salary as initially discussed.

    Omission of Clause (39) of Part I of Second Schedule to the Income Tax Ordinance, 2001 is only of technical nature. This clause provided exemption to re-imbursement of expenditure incurred by employee on behalf of the employer organization.

    This type of transaction cannot form part of the salary in any circumstances. The omission has been made only because there were some interpretations of the courts that were not in accordance with the actual purpose of this clause.

    The clause has accordingly been omitted to avoid multiple interpretations or confusions. The figures of revenue generation of Rs.1.82 billion reported by the Express Tribune in this regard are absolutely unwarranted and misleading.

    The clause has accordingly been omitted to avoid multiple interpretations or confusions. The figures of revenue generation of Rs.1.82 billion reported by the Express Tribune in this regard are absolutely unwarranted and misleading.

    However, profit on debt or markup component on provident fund has been proposed to be taxed @ 10% as a separate block of income only if such markup exceeds Rs.500, 000 in a tax year.

    FBR firmly believes that this change will not result in any significant burden on taxpayers.

    Slight changes on account of traveling allowance of newspapers employees, free supply of food or other perquisites etc. and salary of seafarers that was wholly exempt have been proposed for rationalization of salary tax regime rather than as revenue generation measure.

    Tax rate on capital market transactions has been lowered from 15% to 12.5% in order to encourage ordinary people to invest their savings in the stock market tradable securities.

    This change will result in enhanced savings and investment in an activity that will lead to industrial expansion and economic growth.

    Needless to highlight, an enhanced confidence in stock market ultimately translates into raising funds/money by initial public offerings (IPOs) by existing companies or new companies joining the field.

    The incentive has been offered for promoting sustainable and inclusive economic growth.

    Ministry of Finance and FBR are always open to positive critique for making changes if any required in the proposals, however, take a strong exception to undue, unwarranted and unjustified criticism.

  • Citi Pharma’s IPO book building starts June 15

    Citi Pharma’s IPO book building starts June 15

    KARACHI: Citi Pharma IPO’s book building phase is scheduled to held on June 15 and 16, 2021 where high net worth individuals and institutional investors will subscribe to 75 per centof the issue size (54.5 million shares), according to a statement issued on Monday.

    The book building will start at the floor price of Rs28 per share, including premium of Rs18 per share. Based on the interest from investors during the book building process, the strike price can rise by 40 per cent (Rs39.20 a share), thus helping the company collect Rs2.8 billion.

    After the book building process, successful bidders will be provisionally allotted 75 per cent of the issue size (54.5 million shares). The remaining 25 per cent (18.1 million shares) will then be offered to retail investors at the strike price. Citi Pharma aims to raise up to Rs2.8 billion by offering a 35 percent stake to institutional and ordinary investors.

    Citi Pharma is one of the largest active pharmaceutical ingredients (API) manufacturers in Pakistan and also makes formulations products. In particular, Citi Pharma sells paracetamol, an API used in painkillers, to GlaxoSmithKline that mixes it with other chemical salts and sells under the renowned brand of Panadol.

    Citi Pharma is raising new funds primarily to expand its existing capacity of 3,600 tonnes per annum of paracetamol to 6,000 tonnes per annum. The demand for paracetamol has surged in the wake of Covid-19. In addition, company plans to add new APIs as well as pharmaceutical formulations (final products) to its existing product line.

  • Punjab allocates Rs560 billion for annual development program

    Punjab allocates Rs560 billion for annual development program

    LAHORE:  The Punjab government has allocated Rs560 billion for Annual Development Plan (ADP) for fiscal year 2021/2022, which is 66 percent higher when compared with Rs337 billion of the outgoing fiscal year.

    The provincial government issued following details related to allocation for the development projects:

    Housing and Public Health Engineering

    • Waste water treatment plant at Babu Sabu Lahore – Rs35.1 billion
    • Provision of clean drinking water through Punjab Aab-e-Pak Authority to more than 70 million population in all districts of Punjab – Rs11.6 billion
    • Construction of flyovers and underpasses in Lahore – more than Rs10 billion

    Irrigation

    • Construction of Jalalpur Canal – Rs32.72 billion
    • Remodeling of SMB Link Canal & enhancing capacity of Mailsi Syphon – Rs 4.03 billion
    • Disaster & Climate Resilience project – Rs10.7 billion
    • Trimmu Brrage, Punjnad Headworks – Rs16.8 billion

    Social Welfare & Bait ul Maal

    • Panagahs at all divisional headquarters in Punjab – Rs793 million
    • Violence against women centers at DG Khan, Rawalpindi and Lahore – Rs425.5 million
    • Disabled person management information system – Rs196.4 million

    Public Private Partnership Projects

    • Lai Expressway, Rawalpindi to Islamabad – Rs55 billion
    • Okara – Satgara – Syedwala – Jaranwala – Chak Jhumra Expressway Road – Rs25.4 billion
    • Sialkot Ring Road – Rs15.9 billion
    • Installation of Water Meters in Lahore – Rs10.4 billion
    • Multan Vehari Road – Rs12.01 billion

    Forest

    • Ten billion tree Tsunami Program (Phase – I) – Rs13.1 billion
    • Establishment of Dargai Gill Gorest Park – Rs398 million
    • Development at Pabbi National park – Rs150 million

    Law & Order and Emergency Services

    • Prison Management Information System for all prisons – Rs290 million
    • Rescue 1122 Service in all Districts of Punjab – Rs683 million
    • Motorbike Ambulance Service in remaining 27 districts of Punjab – Rs984 million

    Transport

    • Procurement of 200 Eco friendly urban buses for major cities of Punjab – Rs3.4 billion
    • Construction of 200 bus stops/shelters including bus information system in Lahore – 498 million
    • Centralized Auomtaed Fare Collection and Bus Scheduling System – Rs312 million

    Energy

    • Renewable energy sector program – 12.86 billion
    • Establishment of Punjab Grid Company
    • Punjab Ujala Program for School Solarization – Rs1.53 billion
    • Solarization of 303 schools (for differently abled children) – Rs250 million

    Enivornment

    • Installation of air quality monitoring system across Punjab
    • Installation of water quality monitoring system across Punjab

    Agriculture & Food Security

    • Punjab irrigated agriculture productivity improvement – Rs41.7 billion
    • National program for improvement of watercourses phase – II- Rs18.33 billion
    • Agriculture Transformation plan – Rs51.9 billion]
    • Subsidy of Agriculture inputs – Rs4 billion
  • Punjab presents Rs2,653 billion outlay budget 2021/2022; salary and pension increased by 10 percent

    Punjab presents Rs2,653 billion outlay budget 2021/2022; salary and pension increased by 10 percent

    LAHORE: The Punjab government on Monday presented a total outlay of Rs2,653 billion provincial budget for fiscal year 2021/2022, which is 18 percent higher than the outgoing fiscal year.

    Punjab Finance Minister Makhdoom Hashim Jawan Bakht presented the budget in the provincial assembly. He announced an increase of 10 percent in salary and pension of all provincial government employees. Besides, the provincial government also announced a 25 percent increase as special allowance for those employees between grade – 1 to grade -19, who were never granted any type of allowance in the past.

    The Punjab government also announced to increase monthly minimum wage from Rs17,500 to Rs20,000.

    Giving details of the budget 2021/2022, the provincial minister said that the province would get Rs1,684 billion under National Finance Commission (NFC) Award, which would be 18 percent from the outgoing fiscal year.

    He said that the provincial revenues have been estimated at Rs405 billion for the next fiscal year, which is 28 percent higher than the outgoing fiscal year.

    The Punjab government allocated Rs560 billion for annual development plan (ADP) for next fiscal year, which is 66 percent higher than the outgoing fiscal year.

    The provincial minister announced tax concessions worth Rs50 billion during the fiscal year starting from July 01, 2021.

    The minister said that an amount of Rs40 billion would be granted as tax incentive for construction sector during the next fiscal year. This concession would be available by maintaining stamp duty at one percent during the next fiscal year.

    The provincial government decided to continue reduced rate of sales tax on services from 16 percent to five percent during the next fiscal year. The reduced rate of sales tax would be available on services included small hotels, guest houses, marriage halls, lawns, caterers, IT services, tour operators, jims, property dealers, rent a car service, cable tv oprators, treatment of textile and leather, commission agent of commodity operation, auditing accounting and tax consultancy services, photography and parking services etc.

    In addition to mentioned above services, the provincial government decided to add more 10 services into reduced rate of tax regime. The government allowed reduced rate of sales tax on services from 16 percent to 5 percent to beauty parlor, fashion designers, home chefs, architects, laundries and drycleaners, supply of machinery, warehouse, dress designers and rental bulldozers etc.

    The government decided to reduced sales tax rate from 19 percent to 16 percent on call centers.