The Central Ruet-e-Hilal Committee, responsible for sighting the moon to determine Islamic months, officially announced that the Shawal Moon has been sighted.
(more…)Author: Mrs. Anjum Shahnawaz
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Half a million people pay surcharge to get active taxpayer status
ISLAMABAD: Nearly half of a million people have paid surcharge for appearance in Active Taxpayers List (ATL) to get benefit of exempt withholding tax or reduced rate of withholding tax on various types of transactions.
Sources in Federal Board of Revenue (FBR) on Wednesday said that around 500,000 taxpayers who filed their income tax returns after due date had paid surcharge to appear on the ATL for tax year 2020.
The FBR issues a fresh ATL on March 01 every year on the basis of returns filed for the preceding tax year. The FBR issued ATL for tax year 2020 on March 01, 2021. This ATL carried 2.17 million names of taxpayers who filed their income tax returns by due date or those who filed their returns on the date which was extended by Commissioner Inland Revenue (CIR).
The updated ATL – on the basis of surcharge paid by those person who filed their income tax returns after due date – issued on May 10, 2021 is showing around 2.65 million names of active taxpayers.
The filing of income tax returns is mandatory for all the taxpayers who have taxable income or specified under Section 114 of Income Tax Ordinance, 2001.
As per statute the compliance of mandatory return filing was not enough to avail the reduced rate facility. According to Section 182A of Income Tax Ordinance, 2001 the persons who fail to file annual return of income by due date or extended by commissioner Inland Revenue then their names would not be included in the active taxpayers list for the year for which return was not filed.
However, the persons would be included in the taxpayers list on filing return after the due date, if they pay surcharge at: Rs20,000 in case of a company; Rs10,000 in case of an association of persons; and Rs1,000 in case of an individual.
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TPL Life launches insurance plan for overseas Pakistanis
KARACHI: TPL Life has launched Roshan Zindagi, a unique insurance plan designed to facilitate Non Resident Pakistanis (NRP’s) and their families residing in Pakistan.
With a unique product which is new to Pakistan’s insurance landscape, TPL Life strives to be the only digital life and health solution for valuable contributors to Pakistan’s economy they reside abroad.
To ensure maximum convenience to NRP’s, the solution aims to provide an end-to-end, paperless and digital experience to over nine million Pakistanis residing abroad through an easy yet preference based journey.
TPL Life’s Roshan Zindagi Insurance Plan offers Accidental Death Coverage of over Rs2.5 million for NRP’s, Comprehensive Health Insurance Benefits for their families residing in Pakistan, as well as exclusive dismemberment limits against any unforeseen events.
To further facilitate customers, the plan also provides Cashless Hospitalization of up to Rs20 million with access to TPL Life’s 300 + panel hospitals located across Pakistan.
The product is currently offered to Pakistanis residing in 11 countries including UAE, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Australia, Malaysia, UK, USA and Canada, with an aim to expand the Roshan Zindagi footprint to more than 50 countries serving hardworking expats in the coming years.
Speaking at the occasion, Faisal Abbasi, CEO, TPL Life said: “It gives me great pleasure to present Roshan Zindagi Plans for Overseas Pakistanis & their families residing in Pakistan.
“The launch of TPL Life’s Roshan Zindagi Plan is a testament to our quest of completing the circle of safety by providing two-fold benefits to NRPs and their families. We at TPL Life, leave no stone unturned to provide personalized propositions and address the needs of every customer segment in Pakistan.”
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Implementing full fledged VAT recommended in budget
Tax experts, gathered under the banner of the Karachi Tax Bar Association (KTBA), have strongly recommended the implementation of a comprehensive Value Added Tax (VAT) by the Federal Board of Revenue (FBR).
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KCAA appreciates customs clearance during Eid Holidays
KARACHI: Karachi Customs Agents Association (KCAA) has appreciated the measures taken by the tax authorities for smooth customs clearance during Eid holidays.
In a statement issued on Tuesday, the KCAA stated that the customs field formations at Karachi Ports observed normal working hours on May 8 h 2021 and remained open on 10th and 11th May in order to facilitate the trade and industry. During remaining Eid Holidays, from May 12th to 15 h May, special teams have been constituted to facilitate the import cargo.
As a result of the measures taken by the customs at the Karachi Ports, clearance of the cargo remained smooth including the food items, pharmaceutical goods and industrial raw materials.
Trade bodies engaged in clearance of import consignments have appreciated the measures taken by the FBR and Customs and the positive impact of such decisions on economy during Eid holidays and Covid-19.
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Framing sales tax rules for e-commerce recommended
KARACHI: Tax practitioners have suggested the Federal Board of Revenue (FBR) for framing rules to bring e-commerce under sales tax laws.
The tax practitioners under the umbrella of Karachi Tax Bar Association (KTBA) discussed upcoming budget 2021/2022 and proposed a comprehensive rules for e-commerce under sales tax laws.
It is discussed that e-commerce of goods as well as services has gained significant momentum particularly in post COVID era. Through digital platforms, large number of vendors/service providers from informal economy can reach customers without setting up proper business structure.
It is difficult not only for the tax authorities to capture such activity but also for the compliant taxpayers who want to discharge their obligations under the tax laws.
Therefore, it is suggested that relevant provisions be amended, and detailed rules be framed for ecommerce in line with global best practices core features of which are:
— Digital platforms, due to their control on the transactions, should be held responsible for collection and payment of sales tax where the vendor is unregistered
— Small vendors earning revenue below 5 Million be exempted from getting registration under the Act
— Appropriate provision for exemption from withholding tax should also be introduced
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Industry perturbs over rampant street crime
KARACHI: Business community is worried over rampant incidents of street crimes in the metropolis ahead of Eid holidays, according to a statement issued on Tuesday.
The statement issued by Pakistan Hosiery Manufacturers Association (PHMA) informing the Chief Minister of Sindh about the rampant incidents of car snatching and stealing valuables and expensive parts from a vehicle parked out on the side of a road and cash snatching withdrawal from banks.
Member industrialists have approached the Association conveying their genuine concerns sense of insecurity and said that it seems that police and other law enforcement agencies are busy in lockdown activities due to COVID19 and the general public are deprived of their valuables.
One incident has taken place at Jamia Masjid Faruq e Azam near Boat Basin where a person has parked the vehicle to offer Asr Namaz when arrived back mirror of the vehicle was broken and valuables were stolen by the thieves.
The whole theft was wrapped up in 2-3 minutes and even more perturbing is the fact that all this happened in broad daylight.
No wonder, they don’t need the cover of darkness. The public is quite afraid and avoids going for even Namaz in the masjid when they are commuting on their vehicles due to increased incidents of stealing and snatching.
“We have also enquired from the suppliers/shopkeepers of parts market and they informed that the sale of the side mirror, window glass, and back glasses has increased manifold during last 2-3 weeks and stated that they have never seen such a historic sale in their whole life which is alarming,” according to the statement.
It is the need of the hour to take immediate safety measures and strict action against the criminal elements area otherwise all the efforts in the past which revived peace and security will go in vain.
Therefore, the gravity of the situation demands your immediate intervention and direct the police department to increase the patrolling and deploy policemen on key points of the areas for the safety and security of the karachiities.
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Karachi Chamber demands opening of markets amid alarming corona situation
KARACHI: As the country is facing alarming situation of coronavirus in its third-wave and a strict lockdown has been imposed to prevent spread of the pandemic, the business community is demanding to allow opening of market during last two days of the Eid-ul-Fitr.
In this connection, Karachi Chamber of Commerce and Industry (KCCI) has appealed the Sindh government to allow shopkeepers and small traders of Karachi to open up businesses during last two days before Eid from Iftar to Sehri so that they could be able to recover some of the grave losses suffered by them due to stiff curbs imposed to contain further spread of COVID-19 pandemic.
“Keeping in view the not so bad number of COVID-19 cases in Karachi, we believe that there is some room available to allow shopkeepers in Karachi to open up their businesses at least on Wednesday and Thursday from Iftar to Sehri which would be widely welcomed not only by small traders and shopkeepers but also by a large number of Karachiites who will be able to complete their unfinished shopping for Eid festival,” said Chairman Businessmen Group & Former President KCCI Zubair Motiwala.
Zubair Motiwala pointed out that associations of commercial markets from all over the city have been constantly exerting pressure on KCCI so that the Chamber, being the premier and actual representative of the entire business community, could play its role by convincing the Sindh government to allow businesses to keep on operating during the last two days while the representatives of these commercial markets associations have also assured to fully comply with Standard Operating Procedures (SOPs) during these days.
“Instead of completely shutting down businesses, the government should allow them to keep on running their businesses from Iftar to Sehri during the last two days before Eid which would obviously fragment the public and discourage overcrowding as all the markets in the city will be simultaneously operational, besides ensuring social distancing all the time, which is one of the key elements required for containing further spread of coronavirus”, he added.
Keeping in view the overall situation and grievances suffered by small traders and shopkeepers, Chairman BMG hoped that the Sindh government, which has always played the lead role in efficiently rescuing the public from time to time, would provide the desperately needed relief to local businesses this time as well by relaxing the curbs for just two days from Iftar to Sehri so that the businesses could be saved from further disaster. “Keeping in view the COVID statistics and forecasts, if the government feels that the loss of precious lives was unlikely then they should provide relief for two days”, he added.
President KCCI Shariq Vohra stated that it is high time that the Sindh government, being the peoples’ government, has to come forward to minimize the hardships being faced by the distressed citizens and the business community of Karachi by ordering to lift restrictions on opening up businesses on Wednesday and Thursday from Iftar to Sehri. “Due to harsh curbs imposed in an extraordinary situation, uncertainty prevails and people have become hopeless hence, the Sindh government will have to take steps to deal with the situation by providing relief to Karachiites during the last two days before Eid”, he added.
Chairman of KCCI’s Special Committee for Small Traders Majeed Memon pointed out that many shopkeepers are already going through terrible crises due to limited business activities since the outbreak of COVID-19 pandemic hence, the government must look into the possibility of providing them relief for just two days before Eid by allowing them to carry on businesses from Iftar to Sehri otherwise many businesses will not be able to survive and wipeout forever. “The situation, if not promptly responded and wisely handled, would lead to intensifying the hardships not only for business community but also for the already ailing economy, besides triggering massive unemployment and poverty which would prove more dangerous than the pandemic”, he added.
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CAA makes QR code must after discovery of fake COVID certificates
KARACHI: Civil Aviation Authority (CAA) Pakistan on Monday made QR code with negative COVID results for air travelers arriving into Pakistan.
The decision has been taken after discovery fake certificates of COVID tests provided by persons at international arrivals.
In a statement the CAA said that it had been noted with grave concerns that passengers travelling to Pakistan, especially from Gulf States, had tested COVID-19 positive upon arrival despite being in possession of negative PCR test results prior to commencement of travel to Pakistan, as stipulated in the country’s COVID-19 standard operating procedures.
“Upon conducting an investigation into the issue, it has been found that said passengers travelled to Pakistan using fake PCR negative Test results and therefore endangered not only passengers travelling with them but also undermined the intense efforts being made at the national levels to curb the spread of COVID-19,” the CAA said.
The CAA said that it was not authority’s responsibility alone but it had to be shared by all concerned stakeholders including airline operators.
In view of the foregoing, the competent authority directed all the airlines operating to/from Pakistan must ensure:
All passengers travelling to Pakistan possess PCR test results only from respective government approved labs.
No test result be accepted without valid QR code certifying the negative test results in the name of a passenger.
Only original test results/reports are accepts prior to checking in passengers for flights to Pakistan and no copies are accepted.
Passengers not registered through the pass tract app are not accepted for travel to Pakistan.
All airline operators operating to/from Pakistan are to ensure strict compliance with the directives and enforce effective mechanism to ensure no such incident of similar nature occurs in the future.
In case of non-conformance with the directives, Pakistan CAA reserves the right to impose regulatory punitive action against such airline operators including but not limited to financial penalties and revocation of flight authorization.
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FBR reduces sales tax rates on petroleum products
ISLAMABAD: Federal Board of Revenue (FBR) has reduced the rates of sales tax on domestic supply of petroleum products.
The sales tax rates have been reduced in order to maintain the retail prices for end consumers applicable from the first fortnight of May 2021.
The FBR issued SRO 551(I)/2021 dated May 09, 2021 to amend SRO 57(I)/2016 dated January 29, 2016.
Following are the revised sales tax rates on petroleum products from May 01, 2021:
Motor spirit: 17 percent ad valorem
High speed diesel oil: 17 percent ad valorem
Kerosene: 15.44 percent ad valorem
Light diesel oil: 7.56 percent ad valorem
On April 30, 2021, a press statement was issued by the finance division:
“In line with the vision of the Prime Minister to provide relief to the consumers in the holy month of Ramazan, the Government has decided not to increase the prices of the petroleum products. The implementation of this proposal requires an adjustment in the rates of petroleum levy on all petroleum products and a reduction in sales tax as well in case of kerosene oil and light diesel oil.
It is pertinent to mention that the Government was not charging any Petroleum Levy (PL) on Kerosene and light diesel oil.
The cumulative revenue impact of the decision will be Rs. 4.8 billion.
The prices of petroleum products w.e.f 1st May 2021 are as follows: MS Petrol Rs.108.56/liter High Speed Diesel Rs. 110.76/liter Kerosene oil Rs. 80.00/liter Light Diesel Oil Rs. 77.65/liter
A uniform rate of sales tax at 17 percent was announced for all petroleum products through SRO 700(I)/2019 effective from July 01, 2019. However, this notification has been now amended.