Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • KTBA presents proposals for budget 2021/2022

    KTBA presents proposals for budget 2021/2022

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday presented proposals for budget 2021/2022 to the Federal Board of Revenue (FBR).

    In its proposals the KTBA said that the tax-to-GDP ratio was a soaring issue for country’s economic managers. “On the other hand, tax measures undertaken in Pakistan have traditionally created higher taxation on formal economy and under taxation on information economy,” it added.

    Primarily, it is because of over dependence over withholding tax regime as well as due to higher tax expenditure and concessions/exemptions.

    In addition to above many studies have concluded that there are gap in agriculture and property income in Pakistan which otherwise are under-taxed hence misused.

    “Besides, there are distortions in collection of General Sales Tax on goods and services and full tax collection on this core is yet to be exploited,” it added.

    In addition to above, a host of tax exemption/concessions have already been withdrawn by way of Tax Laws (Second) Amendment Ordinance, 2021 which was believe will become part of budget proposals.

    It is however the country needs a lot more drastic measures to bring its tax to GDP ratio at desired level.

    The KTBA suggested that federal and provincial governments should harmonize their differences in order to remove the gaps and distortions and to improve tax collection from agricultural, property and GST.

    The tax bar said that the proposals were completed keeping in view following features and categories:

    — Salvaging the manufacturing sector

    — Proposal for salvaging the corporate sector

    — Taxation and withholding tax regime under Section 148 and 153 of Income Tax Ordinance, 2001.

    — Proposals regarding taxation of property income

    — Capital gains taxation on securities

    — Proposal for changes in taxation of salary income

    — Proposal for changes in taxation of non-residents

    — Proposal for change in Non-Profit Organizations

    — Withholding tax provisions

    — Proposal for Appellate proceeding

    — Proposal for departmental proceeding

    — Proposal for simplifying filing and other periodic compliance

    — Broadening the scope and equitable of the law.

  • Karachi Tax Bar suggests reduction in corporate tax rate

    Karachi Tax Bar suggests reduction in corporate tax rate

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday suggested reduction of corporate tax rate to 25 percent from existing 29 percent in order to promote documentation of economy and discouraging tax evasion.

    The KTBA in its recommendations for the budget 2021/2022, stated that currently corporate rate of tax in Pakistan is 29 percent which due to Workers Welfare Fund (WWF) and Worker Welfare Participation Fund (WWPF) goes up to 36 percent which is higher than the average tax rate in Asia i.e. 21.32 percent.

    The higher corporate rate is increasing cost of doing business and regionally uncompetitive position.

    The KTBA proposed that the corporate rate of tax should be decrease up to 25 percent by gradually decreasing 1 percent every year.

    The rate of tax on small companies should also gradually be reduced to 15 percent.

    Income of WPPF should be exempted from tax. The excess of WPPF as deposited in WWF fund should be also as a credit against WWF levy.

    The KTBA said that the high rate of tax is encouraging tax evasion and discouraging documentation of economy and corporatization.

    It is also disincentive for foreign and local investment, it added.

  • Jazz awarded project worth Rs344 million for providing broadband service

    Jazz awarded project worth Rs344 million for providing broadband service

    ISLAMABAD: The Universal Service Fund (USF) on Monday awarded contract worth approximately Rs344 million to Jazz for providing High Speed Mobile Broadband services in Jacobabad, Shikarpur & Kashmore districts of Sindh province.

    Federal Minister for Information Technology (IT) and Telecommunication, Syed Amin Ul Haque, Federal Minister for Planning, Development, Reforms and Special Initiatives, Asad Umar and Federal Minister for Privatization, Mian Muhammad Somroo witnessed the contract signing ceremony in Jacobabad on Monday.
    The contract was signed by Haaris Mahmood Chaudhary, CEO, USF with Aamir Ibrahim, CEO, Jazz. Addressing the ceremony, Federal Minister for IT and Telecommunication, Syed Amin Ul Haque said, “Sindh is not governed by Pakistan Tehreek-e-Insaf (PTI) or Muttahida Qaumi Movement (MQM), and for the past 12 years, Pakistan Peoples Party (PPP) has been occupying the province- a party that does not care about the people or their interests.

    During its 12 years in power, PPP gave the people of this province nothing but poverty, unemployment, broken roads, sewerage and water issues, along with health and education problems. Journalists are also being subjected to false charges, bullying, intimidation, torture and even murder. We strongly condemn this and demand that the cases against the journalists be dropped immediately and that justice be provided to the families of the ones who were martyred.”

    The Federal Minister for IT and Telecommunication added that necessary steps were being taken for the development of Sindh including the provision of High Speed Mobile Broadband services to millions of residents of Jacobabad, Shikarpur, Kashmore and surrounding areas.

    Syed Amin Ul Haque said that the Ministry of IT and Telecommunication has launched 9 projects worth over Rs8.48 billion in the last two years focusing on improvement of network coverage and provision of High Speed Mobile Broadband services along with a number of optical fiber cable projects in Sindh.

    The completion of these projects will provide facilities to 17.7 Million people in 19 districts of the province. Currently, 1,900 km of optical fiber cable is being laid which will serve educational institutions, health centers and businesses, allowing citizens to access High Speed Internet.

    He added that within the next few days, a 709 km long optical fiber cable project will be launched at a cost of PKR 2.1 Billion, making it another important milestone in digitalizing Pakistan. Syed Amin Ul Haque said that an indication of Sindh government and its Chief Minister, Syed Murad Ali Shah’s lack of interest in the people of the province was the fact that he never participated in the launch events for these welfare projects, despite being invited by the Ministry of IT and Telecommunication several times. He added that the Sindh government was not concerned about the public and public-interest projects.

    He stated, “We have not made false promises to you, but have framed our plans and are beginning to take practical steps for Sindh. Because we believe in the politics of service, we have nothing to do with the politics of opposition.”

    He prompted journalists to hold the Chief Minister of Sindh accountable for development funds of more than PKR 1500 Billion that were sanctioned for the people of Sindh in the past 12 years and question where such a huge amount was spent and how has it improved lives of the citizens.

    While addressing the ceremony, Federal Minister for Planning, Development, Reforms and Special Initiatives, Asad Umar and Federal Minister for Privatization, Muhammad Mian Soomro thanked the Federal Minister for IT and Telecommunication, Syed Amin Ul Haque for launching projects worth billions of rupees for the province of Sindh.

    Sharing his views on the development, CEO Jazz, Aamir Ibrahim said, “Jazz invested US$ 462 million during the last two years mainly to expand its 4G footprint in rural and semiurban areas and bridge the digital divide as we collaborate with the Government of Pakistan in realizing the #DigitalPakistan vision.

    “Today, close to 60 percent of Pakistan’s population has access to Jazz’s 4G network. Through this contract, Jazz in collaboration with USF will equip over a million unserved residents of Jacobabad, Kashmore and Shikarpur districts with high-speed mobile broadband, creating socioeconomic opportunities and uplifting lives.”

  • FBR announces panel of advocates for customs service

    FBR announces panel of advocates for customs service

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday announced panel of advocates, who will represent the tax authorities in cases relating to matters of Pakistan Customs Service (PCS).

    The panel of advocates has been appointed for a period of three years.

    Pakistan Customs (North)

    1. Arslal Amjad Hashmi North

    2. Malik Nasir Abbas

    3. Saleh Zada

    4. Ms. Syeda Mirbaz

    5. Barrister Dr. Waseem Qureshi

    6. Ms. Shamin Choudhry

    7. Javaid Alchtar

    8. Ms. Momina Khayal

    9. M. Irshad Chaudhry

    10. Dilnawaz A. Cheema

    Pakistan Customs (Central)

    1. Omar Arshad Hakeem

    2 Barrister Qadir Buksh

    3 Barrister Hans Azmat

    4. Tahir Zia Mahar

    5. Syed Hamid Raza Bokhari

    6. Amir Farooq

    7. Muhammad Asif Butt

    8. Saif ullah Khan

    9. Ms. Firoza Gohar

    10. Fawad Ahmad Cheema

    11. Habib Rehman

    12. Muhammad Shabaz Sharif

    13. Khurram Virk

    14. Mustafa Haroon

    15. Sheikh Muhammad Ali

    16. Ms. Shagufta Arif

    17. Rai Amer Ijaz Kharal

    18. Ch. Muhammad Shahid Iqbal

    19. Faisal Akbar

    20. Mesum Mehdi

    21. Muhammad Saleem

    22. Muhammad Hafeez

    23. Usman Afi Virk

    24. Waqar Ahmad Sheikh

    25. Khawar Nawaz Bharwana

    26. Hasnan Maqsood

    27. Ahmad Wasim

    28. Amir Ali

    29. Muhammad Ahmad Mehboob

    Pakistan Customs (South)

    1. Rana SalchawatAli

    2. Irfan Mir Halepota

    3. Imran Ahmed Maitlo

    The FBR said that advocates may be assigned Court cases for pleading before various Courts /

    Tribunals at relevant stations on the basis of merit, keeping in view their experience and facts of the each case.

    Matter relating to professional fee/ special professional fee, appointment, performance evaluation, de-notification, conduct of the Panel Advocates and other related matters will be governed by the SOPs/ policy guidelines circulated vide FBR’s letter C.No.8 (70)s(P.A)/2020/176432-R dated 12.10.2020 and any other notification issued or to be issued from time to time.

  • FBR allows duty free import of oxygen manufacturing plants

    FBR allows duty free import of oxygen manufacturing plants

    The Federal Board of Revenue (FBR) in Pakistan announced on Monday the grant of duty exemption on the import of critical oxygen-related goods.

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  • IR intelligence unearths Rs4.27bn sales tax fraud

    IR intelligence unearths Rs4.27bn sales tax fraud

    ISLAMABAD: The Directorate General of Intelligence and Investigation (Inland Revenue) has unearthed a sales tax fraud to the tune of Rs4.27 billion by M/s. Innovative Biscuits (Pvt).

    A statement issued by the Federal Board of Revenue (FBR) on Monday said that the Directorate of Intelligence & Investigation (IR), Lahore on receipt of credible information related to sales tax fraud carried out action under Section 38 read with Section 40 of the Sales Tax Act, 1990 against M/s. Innovative Biscuits (Pvt.) Limited, Lahore.

    Assessment order was issued wherein an amount of Rs. 4.27 billion as sales tax along with default surcharge and 100 percent penalty for tax fraud was imposed upon the registered person

    Accordingly, accused Sheikh Munir Hussain, one of the Directors of M/s. Innovative Biscuits (Pvt.) Limited was arrested. Due to proper presentation of case by Directorate of Intelligence & Investigation (IR), Lahore, two bail applications filed by the accused were rejected by Special Judge, the FBR said.

    Subsequently, the accused filed another application for bail before Lahore High Court. The Lahore High Court, Rawalpindi Bench, Rawalpindi granted post arrest bail to the petitioner on deposit of an amount of Rs 300 million and submission of post dated cheque of Rs. 100 million. The legal process is underway against the accused.

    Directorate General of Intelligence & Investigation-IR has performed commendably well in the current Financial Year from July-2020 to April 2021.

    The Directorate General has forwarded 653 Investigation Reports involving revenue of Rs. 197.714 billion to the field formations. The Directorate General conducted 40 raids where estimated revenue amounting to Rs. 761 million is involved. Directorate General filed 67 complaints under Anti-Money Laundering Act, 2010 against 75 accused persons involving Rs. 55.385 million. Directorate General also seized 6667 cartons of illegal cigarettes.

  • Rs137.8bn cash withdrawn through ATMs during Eid Holidays: SBP

    Rs137.8bn cash withdrawn through ATMs during Eid Holidays: SBP

    KARACHI: State Bank of Pakistan (SBP) on Monday said that general public made cash withdrawal to the tune of Rs137.8 billion during holidays of Eid ul Fitr.

    A record Rs.827.2 billion were withdrawn through 63.2 million transactions during Ramadan and Eid holidays, whereas Rs.137.8 billion were withdrawn through 11.6 million transactions during Eid holidays only.

    The SBP in collaboration with commercial banks has been taking a number of steps in order to ensure maximum availability of ATM related services to its customers especially during Ramadan and long holidays including Eid and other festivals.

    Consequently, the joint efforts of SBP and commercial banks saw an average of 96.5% uptime recorded in ATM services during Ramadan and Eid-ul-Fitr. This further improved to 98% uptime, during the Eid-ul-Fitr holidays.

    SBP initiated a Special ATM Monitoring exercise during the holy month of Ramadan and on long EId-ul-Fitr holidays keeping in view the high demand for cash.

    In this regard a dedicated team within SBP was formed to oversee the nationwide ATM Operations of all banks through both On-site and Off-site inspections and monitoring.

    Dedicated SBP staff remained available round-the-clock to liaison with banks in order to ensure that uninterrupted ATM related  services remain available to the  customers during the long Eid-ul-Fitr holidays spanning over nine days.

    SBP teams received more than 500 complaints from public that were immediately taken up with the banks for resolution in the shortest possible time.

    SBP appreciates efforts of the banks in ensuring high availability of ATMs during Ramadan and Eid holidays.

    The ATM uptime has also been encouraging as it was difficult for banks to mobilize ATM Monitoring teams on-ground for rectification of issues because of mobility restrictions and issues related to availability of spare parts due to closure of markets etc.

    SBP firmly resolves to keep facilitating public and carrying out similar exercises in future as well to facilitate the general public at large.

  • Commerce ministry issues guidelines for joining Amazon

    Commerce ministry issues guidelines for joining Amazon

    ISLAMABAD: The ministry of commerce has issued guidelines for local businessmen to join Amazon – one of the world’s largest e-Commerce platform – as Pakistani seller.

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  • Stock market gains 182 points on GDP growth projection

    Stock market gains 182 points on GDP growth projection

    KARACHI: The stock exchange gained 182 points on Monday on official GDP growth projection and Moody’s assessment.

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