Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • MoU signed for single sales tax return

    MoU signed for single sales tax return

    ISLAMABAD: The revenue authorities of federal and provincial governments on Wednesday reached on an agreement to provide a single web portal to taxpayers for filing only one sales tax return for all revenue authorities.

    A statement stated that Federal Board of Revenue (FBR) and all the four provincial revenue authorities Wednesday signed a Memorandum of Understanding (MOU) for a single sales tax return and single web portal.

    According to the statement issued by the FBR, the signing of the MOU was one of the most significant components of harmonization of sales tax initiative currently underway between the Federation and the provinces.

    On behalf of FBR, the MoU was signed by Chairman FBR, M. Javed Ghani whereas the heads of all provincial revenue authorities signed the document on behalf of their respective departments.

    The representatives of Khyber Pakhtunkhwa Revenue Authority (KPRA) and Balochistan Revenue Authority (BRA) were physically present in the ceremony whereas the representatives of Sindh Revenue Board (SRB) and Punjab Revenue Authority (PRA) participated virtually through Zoom.

    Speaking on the occasion, Special Assistant to Prime Minister on Revenue, Dr. Waqar Masood Khan said that signing of the document was another step towards completion of Prime Minister’s vision to make FBR fully automated.

    “This step will bring facilitation for taxpayers and it will help a great deal in improving the country’s position on ‘Ease of Doing Business Index’,” he added.

    He further added that now persons associated with businesses would only have to file one Sales Tax Return instead of many returns.

    He further said that this step would help bring simplification in tax system and procedure and expressed commitment that other issues currently existing between FBR and provincial revenue authorities would soon be resolved which would further bring ease for business community.

    Waqar Masood congratulated Chairman FBR, heads of Provincial Revenue Authorities and FBR’s Policy Wing Team on achieving this significant milestone.

  • Gwadar free zone becomes operational as Pakistan Customs clears first consignment

    Gwadar free zone becomes operational as Pakistan Customs clears first consignment

    ISLAMABAD: Gwadar Free Zone has become practically operational with the first consignment clearance by Pakistan Customs, a statement said on Wednesday.

    According to the statement, Pakistan Customs has facilitated the clearance of the first import cum export consignment by M/s. HK Sun Corporation limited, which will be further processed in Gwadar Free Zone established under China CPEC and later on items will be exported from Pakistan.

    The first consignment consisting of metal scrap was processed and cleared by the Model Customs Collectorate, (A&F) West, Karachi and goods reached Gwadar Free Zone regulated by Model Customs Collectorate Gwadar.

    More shipments of raw material of the same company are under way to Pakistan which will be further used in manufacturing of goods to be exported.

    M/s. HK Sun Corporation is the first enterprise which has started manufacturing and processing activity in the free zone followed by other investors to contribute in the development of first ever free zone of country established in Gwadar Baluchistan under CPEC.

    According to the concession agreement signed between China Overseas Ports Holding Company (COPHC) and Gwadar Port Authority (GPA), the development and operation of Gwadar free zone is being performed by COPHC.

    The planned development period is from 2015 to 2030, which is divided into four phases.

    With import of the current consignment, the Gwadar Free Zone has practically become operational leading to the development of other economic zones under CPEC in Pakistan.

    The free zone will integrate and strengthen the linkage of industries between China and Pakistan. The free zone is positioned as economic development engine of Gwadar aiming to transform international trade logistics hub under CPEC.

    The project will create employment opportunities for local population; and will play a role of catalyst for economic growth and development of country.

    Federal Board of Revenue is committed to achieve the vision of Prime Minister and is taking such landmark steps to facilitate and provide support for swift clearance of Free Zone Cargo to prevent any possibility of loss or hardship to the export industry.

    Such steps shall boost exports and will result in trade facilitation by ensuring competitiveness of our exported goods in international markets.

  • SECP allows private companies to offer ownership rights to employees

    SECP allows private companies to offer ownership rights to employees

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Wednesday said that private companies especially startups are allowed to offer ownership right to their employees as non-monetary compensation for their intellectual services and promotion of their business.

    Employee Stock Option Plan (ESOP) is a popular method of attracting, motivating, and retaining employees. Stock Option Plans permit employees to share in the company’s success without requiring a startup business to spend precious cash, the SECP said.

    As a step forward to facilitate corporate sector, the SECP hereby clarifies that private companies especially startups can offer ownership rights to their employees as a non-monetary compensation for their intellectual services and promotion of their business.

    A private company may offer shares to its existing shareholders in accordance section 83(1)(a) of the Companies Act, 2017, and if the whole or any part of the shares offered is declined or is not subscribed, such shares can be offered to its employees under pre-determined contractual arrangements.

    Option for employees to own a company they work for proves to be a highly motivating factor to increase productivity and efficacy which startups immensely require at their initial stages of business commencement. The trend of offering shares to employees is globally more prevalent in startups who might not be able to afford hefty compensation packages for their employees.

    Therefore, in order to accelerate business growth in Pakistan, the SECP encourages private companies and startups to avail the opportunity of offering Stock Option Plan which gives them the flexibility to award stock options to employees to buy stock in the company when they exercise the option.

  • FBR urged to provide option for business principal activity in sales tax registration

    FBR urged to provide option for business principal activity in sales tax registration

    The Karachi Chamber of Commerce and Industry (KCCI) has called upon the Federal Board of Revenue (FBR) to address challenges in the business registration process, emphasizing the need for streamlined options in the IRIS registration form.

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  • PIA restructuring plan to be presented before federal cabinet after tax liability reconciliation

    PIA restructuring plan to be presented before federal cabinet after tax liability reconciliation

    ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday recommended to present restructuring plan of Pakistan International Airlines Corporation Limited (PIACL) before the federal cabinet after reconciliation of tax liabilities.

    Sources in Large Taxpayers Office (LTO) Karachi said that billions of rupee as tax liability was pending against the PIACL.

    Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, chaired the meeting of the ECC.

    After detailed consultation, the ECC recommended the restructuring plan of PIACL for onward submission before the Cabinet, after reconciliation of tax liability figures, with a direction to place a cap on future debt which PIACL could take against its improved balance sheet, once restructuring plan is implemented.

    Earlier, the Aviation Division submitted a summary before the ECC regarding restructuring plan of the Pakistan International Airlines Corporation Ltd (PIACL).

    The Adviser to the Prime Minister for Institutional Reforms and Austerity made a detailed presentation on human resource and operational restructuring of the PIACL.

    He drew attention to the various options for restructuring and outlined measures to minimize losses and transform PIACL into a financially viable entity.

    It included human resource restructuring through Voluntary Separation Scheme (VSS), hiring Aviation experts, fleet modernization, routes rationalization, product development and revenue enhancement measures.

    Power Division presented a summary for a one-time grant to GENCOs for onward payment to DISCOs regarding the actuarial value of pension and pensionary benefits of surplus employees and also taking over the liability for payment of pension to existing pensioners of power plants which are decided to be closed immediately by the Cabinet Committee on Energy (CCOE).

    After seeking detailed input from relevant stakeholders, the Committee directed the Power Division to deliberate further and present options for cost optimization regarding pension liabilities.

    The Following Technical Supplementary Grants were approved by the ECC: –

    • Rs.330 million for the Ministry of Defence for the maintenance of aircrafts.

    • Rs.2382 million for the Ministry of Federal Education and Professional Training for the Prime Minister’s Special Package to implement “Skill for All” strategy for TVET sector.

    • Rs.1 billion for the Finance Division to refund the balance amount of funds of Insaf Imdad Ehsas Program.

    • Rs.382.280 million for the Ministry of Energy for completion of development schemes of Sindh and Balochistan provinces under PSDP.

    • Rs.150 million for the Ministry of Housing and Works for funding civil works on different schemes in Balochistan, under PSDP.

    • Rs.30 million for the Board of Investment for different operational expenses.

    • Rs.280 million for the Ministry of Information Technology and Telecommunications for consultancy and implementation of Internet voting (I-voting).

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Energy Omar Ayub Khan, Federal Minister for Privatization Muhammad Mian Soomro, Minister for National Food Security and Research Syed Fakhar Imam, Advisor to the Prime Minister for Institutional Reforms and Austerity Dr. Ishrat Hussain, Advisor to the Prime Minister for Commerce Abdul Razzak Dawood, SAPM on Power Tabish Gauhar, SAPM on Revenue Dr. Waqar Masood, Federal Secretaries, Governor State Bank of Pakistan Reza Baqir, Chairman BOI and other senior officials participated in the meeting.

  • KSE-100 falls by 451 points on selling pressure

    KSE-100 falls by 451 points on selling pressure

    KARACHI: The benchmark KSE-100 index fell by 451 points on Wednesday owing to selling pressure witnessed during the day.

    The index closed at 43,954 points as against previous day’s closing of 44,404 points showing a decline of 451 points.

    Analysts at Arif Habib Limited said that the KSE-100 benchmark index lost 647 points during the session after posting an intra-day gain of 930 points.

    Banks, E&P, Fertilizer sectors remained under selling pressure whereas Tech and Refinery sector stocks saw mixed reaction from Investors.

    Different factors were at play that brought negative sentiment including anticipation of mute growth in financial sector results and decline in international crude oil prices.

    Cement sector performed well earlier in the session, however, change of overall sentiment brought cement stocks down as well. Among scrips, TRG led the table with 38.3 million shares, followed by DSL (30.3 million) and ANL (22.9 million).

    Sectors contributing to the performance include Banks (-183 points), E&P (-103 points), Fertilizer (-98 points), Autos (-37 points) and Power (-31 points).

    Volumes increased slightly from 305.9 million shares to 371 million shares (+21 percent DoD). Average traded value also increased by 26 percent to reach US$ 132.8 million as against US$ 105.2 million.

    Stocks that contributed significantly to the volumes include TRG, DSL, ANL, GGL and TELE, which formed 33 percent of total volumes.

    Stocks that contributed positively to the index include LUCK (+39 points), AICL (+15 points), TRG (+12 points), EFUG (+11 points) and ISL (+11 points). Stocks that contributed negatively include HBL (-55 points), ENGRO (-52 points), BAHL (-46 points), OGDC (-44 points) and FFC (-35 points).

  • CDC, NIFT sign agreement to enable digital payments for mutual fund investors

    CDC, NIFT sign agreement to enable digital payments for mutual fund investors

    KARACHI: Central Depository Company (CDC) and National Institutional Facilitation Technologies (NIFT) have signed an agreement to enable digital payments through NIFT ePay.

    The collaboration will enable the investors to use NIFT ePay services for investing into Mutual Funds using CDC’s digital platform” “Emlaak Financials”. Furthermore, the solution will also be facilitating CDC’s IAS account holders to make IAS payments through CDC Access portal, a statement said on Wednesday.

    Central Depository Company (CDC) is recognized as the infrastructure backbone of Pakistan’s Capital Market and it is the sole securities depository in the country, while NIFT is one of the largest payment processors in Pakistan. Central Depository Company (CDC) and National Institutional Facilitation Technologies (NIFT) signed an agreement to enable digital payments through NIFT ePay.

    The agreement was signed by Haider Wahab CEO – NIFT and Badiuddin Akber CEO –  CDC at the head office of Central Depository Company (CDC).

    Haider Wahab CEO, NIFT stated, “We are delighted to be a part of CDC’s newly launched initiative for the Mutual Fund Industry. We understand that the “Emlaak Financials” platform has an aspiring roadmap, and we look forward to playing our role in enabling the platform and in making this service a success. NIFT will always focus to partner for unique and innovative ideas which will uplift the digital transformation in Pakistan.”

    At the signing ceremony, Badiuddin Akber – CEO, CDC said, “As we embark on this collaboration with NIFT, it gives us immense pride that we are engaging NIFT’s payment gateway for the first of its kind mutual fund aggregator platform being launched in the financial landscape of Pakistan. The launch of this platform and its integration with NIFT’s services to enable secure and swift payments for mutual fund investors is in-line with CDC’s vision of enhancing efficiency and ease of doing business.”

  • Rupee gains 15 paisas on lower import payment demand

    Rupee gains 15 paisas on lower import payment demand

    KARACHI: The Pak Rupee gained 15 paisas against the dollar on Wednesday owing to lower demand for import payment.

    The rupee ended Rs153.18 to the dollar from previous day’s closing of Rs153.33 in the interbank foreign exchange market.

    Currency dealers said that importers were cautious in placing orders for foreign purchases due to rising cases of coronavirus.

    They further said that the inflows of export receipts, workers’ remittances and improved foreign exchange reserves also helped the rupee to make gain.

  • FBR collects Rs24 billion on purchases of immovable properties

    FBR collects Rs24 billion on purchases of immovable properties

    ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs24 billion as withholding tax on purchase of immovable properties during tax year 2020.

    According to collection statistics for tax year 2020 released by the FBR on Tuesday revealed the withholding tax collection on purchase of immovable properties increased to Rs24 billion as compared with Rs13.50 billion in the preceding fiscal year, showing an increase of 78 percent.

    The collection of withholding tax on purchase of immovable properties is made under Section 236K of the Income Tax Ordinance, 2001.

    Prior to Finance Act, 2019, the withholding tax rate was at zero percent where value of immovable property was up to Rs4 million. While, withholding tax at two percent for income tax return filer was to be collected where the value of immovable property is more than Rs4 million. However, at this value of immovable properties the withholding tax for non-filers was prescribed at 4 percent.

    However, through Finance Act, 2019 the withholding tax rate was amended to one percent on fair market value of the immovable properties purchased during tax year 2020 and onwards in case the purchase is on the Active Taxpayers List (ATL).

    The rate of withholding tax in case person is not on the ATL is 2 percent.

    The withholding tax was imposed on purchase of immovable properties under Section 236K was introduced through Finance Act, 2014 in order to encourage income tax return filing.

    According to the Section 236K of Income Tax Ordinance, 2001, any person responsible for registering, recording or attesting transfer of any immovable property shall collect withholding tax at the time of registering, recording or attesting the transfer shall collect from the purchaser or transferee.

    It further said that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.

  • FBR removes additional customs duty on import of auto disable syringes

    FBR removes additional customs duty on import of auto disable syringes

    ISLAMABAD: Federal Board of Revenue (FBR) has removed additional customs duty on import of auto disable syringes with or without needles.

    The FBR issued SRO 367(I)/2021 dated March 30, 2021 and amended the SRO 572(I)/2020 dated June 30, 2020.

    According to the latest notification the additional customs duty shall not be collected on the import of auto disable syringes with or without needles under PCT codes 9018.3110, 9018.3120 up to June 30, 2021.

    Similarly, the additional customs duty is also not leviable on import of tubular metal needles under PCT code 9018.3200 and rubber gaskets under PCT 4016.9310 imported by sales tax registered manufacturers of auto disable syringes up to June 30, 2021.

    Prior to this through Tax Laws (Second Amendment) Ordinance, 2021, the import of auto disable syringes with or without needles were allowed sales tax exemption.

    Similarly, import of raw materials for the manufacturers of auto disable syringes including tubular metal needles and rubber gaskets were allowed sales tax exemption.