ISLAMABAD: The Federal Board of Revenue (FBR) has announced an exemption on sales tax and value-added tax (VAT) for the import of 500,000 metric tons of white sugar, aiming to stabilize market prices and provide relief to consumers.
(more…)Author: Mrs. Anjum Shahnawaz
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Rupee loses 17 paisas on dollar demand for import payment
KARACHI: The Pak Rupee lost 17 paisas against the dollar on Friday owing to payment demand related to import and corporate, dealers said.
The rupee ended Rs159.10 to the dollar from previous day’s closing of Rs158.93 in the interbank foreign exchange market.
Currency dealers said that the market witnessed higher demand of the foreign currency due to upcoming two weekly holidays.
They said that due to fall in coronavirus cases the market was remained optimistic and dollar demand for import payment was gradually rising.
They, however, optimistic that the inflows of export receipts and workers’ remittances would help the local unit to gain values in coming days.
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Fault in international internet cable, PTA makes alternate arrangements
ISLAMABAD: Pakistan Telecommunication Authority (PTA) on Friday said that an international internet cable fault has been reported. However, alternate arrangements to the users have been made, the PTA added.
In a statement it said, in the wake of a fault in one of the international cables landing in Pakistan, alternate arrangements to provide uninterrupted internet services to the users have been made by relevant service providers through obtaining additional bandwidth.
Trans World Associates (TEA) has earlier communicated service degradation on the international connectivity towards Europe on SMW5 cable system due to subsea fault near Abu Talat, Egypt. Work is underway to rectify the fault however it may take some time until the fault is removed completely.
PTA is monitoring the situation and will continue to update on it.
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SBP takes measures for prevention of digital bank fraud
KARACHI: The State Bank of Pakistan (SBP) on Friday taken measures for prevention of digital bank fraud and issued directions to stakeholders in this regards.
The central bank said that in collaboration with other stakeholders it had initiated various measures to curtail digital banking frauds, conducted by employing social engineering tactics including fake calls.
In order to successfully design and deploy additional measures, it is vital to have sufficient information about these frauds.
In this respect, two standardized formats have been developed to record information relating to attempted and committed fake call frauds.
At the time of receiving the calls from customers for reporting of these frauds, the agents at call centers of all Banks/MFBs will record the information, where available, as per the given formats.
Banks/MFBs will report data recorded as per the prescribed formats to the Offsite Supervision & Enforcement Department (OSED) of SBP on monthly basis.
The data will be reported to the SBP in soft copy in Microsoft Excel within 10 days from the close of every month.
The SBP directed banks/MFBs to ensure that the call center agents are sufficiently trained to handle calls received for reporting digital banking frauds.
They must be capable of identifying attempted digital banking frauds related calls when a naive customer unaware of fraudulent attempt reports such instances.
Banks/MFBs will report the relevant information to PTA for blocking SIM/Device of the fraudsters used for committed/attempted digital banking frauds as soon as identified.
As a control mechanism to avoid any further financial loss, the call agents upon receiving calls for blocking digital channels/cards in case of fraud will immediately block all channels temporarily, under intimation to the customer, before seeking detailed verification from the customer.
The verification required from the customer as per procedure will subsequently be acquired on the same call.
For blocking of digital channels, the requirement to call from registered numbers would not be necessary since the customer may not have access to his/her registered telephone number; however, the banks may conduct enhanced verification in cases where the request for blocking of channels was received from an unregistered number.
In order to unblock the account/continue services, the Banks/MFBs will guide the customers as per their relevant policies.
Banks/MFBs are advised to implement the above measures within 30 days from the issuance of this circular.
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SBP issues instructions for reporting borrowers’ information
KARACHI: The State Bank of Pakistan on Thursday issued instructions for banks to ensure quality reporting regarding borrowers’ information.
The SBP said the Credit Information Bureau (eCIB) of the central bank collects borrowers’ credit information and makes it available to financial institutions (FIs) for making informed credit decisions.
The information in eCIB is also used by SBP for supervisory purposes.
Accordingly, quality data reporting in eCIB remains a top priority for SBP.
In this regard, the SBP, carried out an in-depth assessment of the mechanisms put in place for eCIB data feeding, compilation, validation and reporting by the member FIs.
In light of the findings of this exercise, instructions have been developed to ensure quality data reporting in eCIB.
All the member FIs are advised to ensure strict compliance with the enclosed “Instructions for Quality Data Reporting in eCIB” in letter and spirit to avoid any untoward business and legal implication of the incorrect data reporting in eCIB.Failure to comply with these instructions will attract strict penal actions against the concerned FIs under the relevant legal and regulatory provisions.
The SBP said that despite the issuance of repeated instructions from time to time regarding the quality data reporting, still some inconsistencies in the eCIB reported data were witnessed.
Such inaccuracies in data can result in adverse selection by the FIs such as the inadvertent refusal of credit application of a good borrower or extension of credit to a bad borrower. Besides, it may also expose the member FIs to legal and regulatory implications.
Therefore, to ensure high-quality credit reporting of credit data, all the member FIs are advised to ensure that the financial and non-financial data should be:
i. Accurate (i.e. correct, up-to-date, having strong validation process for identification of data subjects and other information as per prescribed data formats).
ii. Sufficient, relevant, and collected on a systematic basis from all reliable, appropriate, and available sources.
iii. Timely (updated on a continuous basis and reported to eCIB).
iv. Retained safely for at least five years or otherwise specified in the relevant law/regulations issued by SBP from time to time.
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Income Tax Ordinance defines Greenfield industry
Income Tax Ordinance, 2001 had defined Greenfield industrial undertaking for the purpose of granting exemption and concession.
The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR) explained Greenfield industrial undertaking as –
(a) a new industrial undertaking which is –
(i) setup on land which has not previously been utilized for any commercial, industrial or manufacturing activity and is free from constraints imposed by any prior work;
(ii) built without demolishing, revamping, renovating, upgrading, remodeling or modifying any existing structure, facility or plant;
(iii) not formed by the splitting up or reconstitution of an undertaking already in existence or by transfer of machinery, plant or building from an undertaking established in Pakistan prior to commencement of the new business and is not part of an expansion project;
(iv) using any process or technology that has not earlier been used in Pakistan and is so approved by the Engineering Development Board; and
(b) is approved by the Commissioner on an application made in the prescribed form and manner, accompanied by the prescribed documents and, such other documents as may be required by the Commissioner:
Provided that this definition shall be applicable from the 1st July, 2019 and onwards.
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ITO explains approved funds
Income Tax Ordinance (ITO), 2001 has defined various approved funds for the chargeability of income tax.
The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR) explained the following:
“Approved gratuity fund” means a gratuity fund approved by the Commissioner in accordance with Part III of the Sixth Schedule;
“Approved Annuity Plan” means an Annuity Plan approved by Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension System Rules, 2005 and offered by a Life Insurance Company registered with the SECP under Insurance Ordinance, 2000 (XXXIX of 2000);
“Approved Income Payment Plan” means an Income Payment Plan approved by Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension System Rules, 2005 and offered by a Pension Fund Manager registered with the SECP under Voluntary Pension System Rules, 2005;
“Approved Pension Fund” means Pension Fund approved by Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension System Rules, 2005, and managed by a Pension Fund Manager registered with the SECP under Voluntary Pension System Rules, 2005;
“Approved Employment Pension or Annuity Scheme” means any employment related retirement scheme approved under this Ordinance, which makes periodical payment to a beneficiary i.e. pension or annuity such as approved superannuation fund, public sector pension scheme and Employees Old-Age Benefit Scheme;
“Approved Occupational Savings Scheme” means any approved gratuity fund or recognized provident fund;
“Approved superannuation fund” means a superannuation fund, or any part of a superannuation fund, approved by the Commissioner in accordance with Part II of the Sixth Schedule.
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FBR delegates powers, functions to Members
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday delegated its powers and functions to the Members under tax laws including income tax, sales tax and federal excise.
The FBR said that in exercise of powers conferred by Section 8 of the Federal Board of Revenue Act, 2001, the Board-in-Council in its 10th meeting held on December 10, 2020 has rescinded notification No. 6(69)S(BIC)/2019 dated February 24, 2020 for recalling and incorporating the provisions related to delegation of powers/functions under various fiscal statutes into this notification for purpose of consolidation and to further delegate to the Members the powers and functions administered by the FBR conferred on Board through FED Act, 2005, Sales Tax Act, 1990 and Income Tax Ordinance, 2001 but still un-delegated;-
DELEGATION OF POWERS TO MEMBERS’, FBR
Member (Inland Revenue-Policy)
1. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;
Sections 2(20), 2(23a), 3(3), 4(1), 4(2), 4(5), 4(8), 5(2), 5(3), 6(2A), 6(2AB), 6(3), 7(1), 7(2), 12(4), 1st and 2nd proviso 12(4),12(5),16(4), 17(1)(g), 17(2) in consultation with
Member (IT), 18(3), 18(4), 18(5), 19A(1), 36 in respect of his order, 38(12) to the extent of rule making, 400), 40(2), 42C with approval of Chairman,42(D),46(7) in consultation with Member (Audit), S.No.55D of the Table I of First Schedule and S. NO.13 and 22(f) of Table I of Third Schedule.
2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;
Sections 2(9A), proviso to section 2(33),2(43), 2(43A)(f), 2(46)(g),2(46)(J), 1st & 2nd provisos to 2(46), 3(1B),3(3A),3(6),3(7), 3(8),151 proviso to 3(9A) to the extent of rule making, rd proviso to 3(9A) in consultation with Member (IT) for rule making 7(3),7(5), 8(2),8(6), 8B(2)(ii), 8B(4),8B proviso, 9, 10(1), 11(6),13(6), 14,21(2), 22(1)(f), 22(2), 23(1), 23(3), 23(4),25(2A),26(1) 1″ and 2nd proviso, 26(5),33A(1),38(4),47A(12), 50(1),50B(4) in consultation with Member (IT),55, 61,61A, 63,67A(10), 67A(12),71, 72C to the extent of rule making with approval of Chairman, 72D(2),proviso (d) to 73(4), 76, S.No. 12th of fifth Schedule and clause 48 of 6th Schedule.
3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;
Sections 2(19D), 2(19E),2(29C)(aa),2(29C)(b), 2(30A), 2(35AA), 2(36)(c),4B(6), 7C(3), 7D(3),13(3),13(12),21(d),21(p),21(q),24(11),27(c), 28(3) to the extent of formulating criteria of approval of leasing companies etc.,32(3),46(d), 59AA(6), 59B(2)(h),61(5), 67(2), 68(4),74(2A), 76(11), 77(6), 100B(2)(e), 100D(3)(e)(ii)(B), 101A, 105(3)(d), 108(3),108A(2) 108B(1),111(5) ,114(2),114(2A) in consultation with Member(IT), 115(4),116(1),116A(1), 118(1),118(2A), 122D(7), 127(3), 131(2), 134A(12),134A(13) ,138(4), 146B(1),146B(2), 147(7A), 148(1), 148(2), 148(2A), 154(3), 155(3)(vii),158(c), 159(6),160,164(1),165(1), 165(1A), 165(3)for making/ amendment of rules, 165(5), 165(6),165A(1) for making/amendment of rules 165B(1) for making making/amendment of rules, 170(2),170(6),174(1), 174(5), 175(9),175A related to rule making, 177(2A), 177(2AA), 177(17),181, 181A(2), 181D, 183,206, 206A, 213„217 to the extent of rule making, 218(1)(d),218(2)(d), 223(10), 223(11), 227A to the extent of rule making with approval of Chairman, 227B(2),227D, 230F(3), 230F(6), 230F(9), 230F(14), 236B(2A), 236L(3),237(1), proviso in division VII of Part I of First Schedule, Clause 12 of Part 1 of 2″ Schedule, Clause 13(iii) of Part 1 of 2nnt Schedule, clause (53A) of Part I of Second Schedule, Clause 12D & 12E of Part-IV of the Second Schedule and clause (60B) and (72B) of Part IV of Second Schedule,
4. Exercise powers and perform functions of the Board under following provisions of Income Tax Rules, 2002;
Rules 19A, 19B, 19C, 19D, 19E, 19F and 231A.
5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;
Rules 31(2), 32(2), 33(1), 33(2), 33(3), 40(7), 41A(15), 43(6) and 79.
6. Exercise powers and perform functions of the Board under the following provisions of Sales Tai Rules, 2005;
Rules 18 and 150
Member (Inland Revenue-Operations)
1. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;
Sections 2(8a),12(4),16(3), 16(5), 21(4), 22(1),23(1), 29(1AA), 29(3), 30(2), 350), 36, in respect of his order, 38 for implementation and operational purpose, 42D,43, 45(2),45(3),45A,46(1) and 49.
2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;
Sections 2(5AA)(f), 2(9), 2(15), proviso to 2(27),6(2), 6(3),7(2)(i) 8(1)(1),8A,10(3), 210), 21(4), 22(1A), 260), 27(a), 30(2A),31, 320)(a) & (b), 32(1)(c) & (d), 34A,37A, 37B(13), 37 I, 380), 38B(3),40B, 40C, 45A,47A(2) ,47A(3), 47A(7), 47A(8),48(1A),56AB,56AB(1)(0,56AB(2),56C,62, 67A(2), 67A(9), 72C for implementation and operational purpose, 72D(1) and 74.
3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;
Sections 2(38A),26(2), 28(3) to the extent of granting approvals in the light of criteria of leasing companies, etc 74(11), 80(2)(b)(vi),107(1A), 108A(5),134A(1)(c),134A(2), 134A(3), 134A(4), 134A(7),I34A(8),134A(9), 165(3), 165A(2),171A(2), 171A(9), 171A(10), 175(9),175A(1),180, 181A, 202, 2090) except for CIR (A), first proviso to section 209(2), 209(3), 211(3), 212 to the extent of powers conferred on him by this distribution/delegation powers order, 214A except for appellate body, 214B(1),217(1) in consultation with Member (IT), 223(8), to 227(A)(1) for implementation and operational purpose, 227B(1) and 230F(11)
4. Exercise powers and perform functions of the Board under the following provisions of Income Tax Rules, 2002,
Rules 90, 94, 109, 220B and 231C
5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;
Rules 2(b), 2(g), 3(5), 5(1),5(4), 25, 26, 28, 31(1), 33(4) in consultation with Member (IR-Policy), 36(4), 40A(3), 41A(2), 53, 54, 55, 56, 57, 58, 64, 74(3), 76, 77 and 78:
6. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Rules, 2006;
Rules 5,6, 10, 12, 27, 28, 30, 41,44, 52, 62, 64, 65, 66, 67, 68, 69 and 150F.
Member (Legal)
1. Exercise powers and functions under the following provisions of Customs Act, 1969;
Sections 185G (2) and 193 A (3) [1st Proviso]
2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;
45A (to the extent of orders by CIR(A) and 74 to the extent of granting condonation to CIR(A) in respect of appellate matters.
3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;
Sections 209(1) to the extent of CIR (A), 214A in respect of orders by CIR (A) and 223(7).
4. Exercise powers and functions under the following provisions of Federal Excise Act, 2005;
Sections 35(1) and 43 – to the extent of appellate orders.
Member (Administration)
1. Exercise powers and perform functions of the Board under the following provisions of Customs Act, 1969;
Sections 3, 3A, 3AA, 3B, 3BB, 3C, 3CC, 3D, 3DD and 3DDD (all with the with approval of Chairman)
2. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;
Section 2(12),19A(2), 22(13) in consultation with Member (Ops), 29(1) with approval of Chairman 29(2)(a),29(2)(b) 29(2)(C), 38(11) and 41(3) in consultation with Member (Ops).
3. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;
Section 2(2), 30 with approval of Chairman 30A(1),30A(2)(a), 30A(2)(b), 30B,30C,30D,30DD,30DDD,30E,33A(2), 47A(11) and 51(3) .
4. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;
Sections 134(A)(11), 2080) with approval of Chairman, 208(2), 216(8), 216A(2), 227(2), 228(1), 228(2), 229(1),229(2), 2300), 230(2), 230A(1), 230A(2), 230B(1), 230B(2), 230C(1), 230C(2), 230D(1), 230D(2), 230E(1 ), 230E(2), 230F(1)230F(2)230G(1), 230G(2),230H(1) and 230H(2).
Member (Fate)
1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;
56C
2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;
181B and 216(5)
3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;
Section 36 in respect of his order
Member (HRM)
1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;
30A(2)(a)
2. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;
Section 29(2) to the extent of job description and 36 in respect of his order
Member (Taxpayers Audit)
1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax, 1990;
Section 32A and 72B to the extent of actual selection on the basis of criteria approved by Board-In Council
2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001.
Sections 177(8), 177(11) and 214C to the extent of actual selection on the basis of criteria approved by Board-in-Council.
3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise, 2005.
Sections 36 in respect of his orders, 42B(1A), 43B(1) to the extent of actual selection on the basis of criteria approved by Board-in-Council and 46(4)
Member (Information Technology)
1. Exercise powers and perform Junctions of the Board under the following provisions of Sales Tax Act, 1990;
Sections 2(5AAA) in consultation with Member (IR-Operations), 3(9A) to the extent of integration of retail outlet with Board computerize system, 21A to the extent of maintenance of active taxpayer list, 22(2A) in consultation with Member (IR-Operations), 22(3) in consultation with Member (IR- Operations), 26(1) 3rd Proviso in – consultation with Member (IR-Operations), 50A in consultation with Member (IR-Operations), 50B(1), 50B(3), 52A in consultation with (IR-Operation) and 72B(1A) to the extent of implementation of computer system.
2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;
Section 216(6A), 216(6C) and 237A in consultation with Member (IR-Operations).
3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;
Sections 4(6) in consultation with Member (IR-Operations) and 17(2)(b) in consultation with Member (IR-Operations) and section 36 in respect of his orders.
4. Exercise powers and perform, functions of the Board under the following provisions of Income Tax Rules, 2002;
Rules 73(2), 73(6) and 229.
5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;
The electronic Filing of Federal Excise Rules, 2005.
6. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Rules, 2006,
Rules 150B, 150D, 1501, 150J, 150K, 150L and 150 0
The FBR said that without prejudice to the above delegation of powers to the respective Members, if any Member of the Board or the Board itself considers that any matter relating to exercise of statutory power is of material significance, the Board or the Member may refer such matter to the Board-in-Council for a collective decision by the Board in Council.
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Foreign exchange reserves ease to $20.058 billion
KARACHI: The country’s foreign exchange reserves eased by $15 million to $20.058 billion by week ended February 12, 2021, State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the country were at $20.073 billion by week ended February 04, 2021.
The official foreign exchange reserves of the central bank fell by $60 million to $12.889 billion by week ended February 12, 2021 as compared with $12.949 billion a week ago.
However, foreign exchange reserves held by the commercial banks increased by $45 million to $7.169 billion by week ended February 12, 2021 as compared with $7.124 billion a week ago.
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Meezan Bank declares Rs22.16 billion after tax profit
KARACHI: Meezan Bank Limited (MBL) on Thursday announced Rs22.16 billion profit after tax for the year ended December 31, 2020.
The bank registered 45.5 percent increase in profit for the year when compared with profit of Rs15.23 billion in the preceding year.
The bank said profit/return earned from Islamic financing and related assets, investment and placements increased to Rs106.59 billion for the year ended December 30, 2020 when compared with Rs94.27 billion in the preceding year.
The bank’s net spread earned increased to Rs64.85 billion for year under review as compared with Rs46.54 billion in the preceding year.
The bank said that gain on securities increased to Rs683 million when compared with previous year’s loss of Rs417.6 million
Total income of the bank increased to Rs74.9 billion when compared with Rs55.86 billion.
Operating expenses of the bank increased to Rs28.8 billion for the year ended December 31, 2020 when compared with Rs24.83 billion in the preceding year.
The bank declared earnings per share at Rs15.67 for the year as compared with Rs10.77 in the last year.