KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly criticized the Federal Board of Revenue (FBR) for its lack of responsiveness in addressing taxpayers’ concerns.
(more…)Author: Mrs. Anjum Shahnawaz
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Rupee gains 43 paisas on improved export receipts
KARACHI: The Pak Rupee gained 43 paisas against the dollar on Monday owing to record export receipts during the last four months.
The rupee ended Rs159.56 to the dollar from last Thursday’s closing of Rs159.99 in the interbank foreign exchange market.
It is interesting to note that the rupee made gains despite closure of the market for the last three days as last Friday February 05, 2021 was declared as Kashmir Solidarity Day.
Pakistan’s exports have crossed over $2 billion for the fourth consecutive months in January 2021 for the first time in last eight years, a official statement said.
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Engro Powergen, CPPAL enter into binding agreement
KARACHI: Engro Powergen Qadirpur Limited (EPQL) and Central Power Purchasing Agency (Guarantee) Limited (CPPAL) have entered into binding agreement for the fixation of power purchase rate and release of outstanding amount to the Independent Power Producer (IPP), a statement said on Monday.
The EPQL shared a communication with the Pakistan Stock Exchange (PSX) informing that on August 17, 2020, it had announced to enter into a Memorandum of Understanding (MoU) dated August 12, 2020 with Committee for negotiations with Independent Private Power Producers notified by the Government of Pakistan, in line with the understanding reached in the MOU, EPQL and Central Power Purchasing Agency (Guarantee) Limited (CPPAL).
The parties will now enter into a binding agreement based on the terms of the MOU, which include inter alia: that all undisputed outstanding amounts due and payable to EPQL under the power purchase agreement, as on November 30, 2020,will be paid in two instalments (each instalment comprising of one-third cash and two-thirds government issued PIBs and Sukuks).
Further, in the larger national interest, EPQL has agreed to (prospectively) accept a reduction in the tariff component, whereby the Return on Equity (“RoE”) and the Return on Equity During Construction (“RoEDC”) will be fixed at 17 percent per annum in PKR (on NEPRA approved equity at Commercial Operation Date for RoE and RoEDC, calculated at USD/PKR exchange rate of PKR 148/USD, with no future USD indexation (“Revised ROE and ROEDC”).
However, the existing RoE and RoEDC, together with the applicable indexations, shall continue to be applied until the date when the applicable exchange rate under the present Tariff reaches PKR 168/USD 1 (i.e. the date of the signing of the MoU), whereupon the Revised RoE and RoEDC shall become applicable and shall apply for the remainder of the Term of the power purchase agreement.
Upon notification of Tariff Determination by NEPRA, first instalment of 40 percent shall be paid to EPQL and the remaining 60 percent shall be paid within six months after the date of the first installment.
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Income tax law defines amalgamation
The word ‘amalgamation’ has been defined under Income Tax Ordinance, 2001.
The Ordinance updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR) has defined the word ‘amalgamation’ as:
“Amalgamation” means the merger of one or more banking companies or non-banking financial institutions, or insurance companies, or companies owning and managing industrial undertakings or companies engaged in providing services and not being a trading company or companies in either case at least one of them being a public company, or a company incorporated under any law, other than Companies Ordinance, 1984 (XLVII of 1984), for the time being in force, (the company or companies which so merge being referred to as the “amalgamating company” or companies and the company with which they merge or which is formed as a result of merger, as the “amalgamated company”) in such manner that –
(a) the assets of the amalgamating company or companies immediately before the amalgamation become the assets of the amalgamated company by virtue of the amalgamation, otherwise than by purchase of such assets by the amalgamated company or as a result of distribution of such
assets to the amalgamated company after the winding up of the amalgamating company or companies; and
(b) the liabilities of the amalgamating company or companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation.
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What is taxable activity under Sales Tax Act?
The Sales Tax Act, 1990, as updated by the Federal Board of Revenue (FBR) up to June 30, 2020, clearly defines the term ‘taxable activity’ for the purpose of determining liability under the sales tax regime.
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KCCI expresses concerns over sudden stoppage of National Saving payments
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday expressed deep concerns over sudden stoppage of payments by National Saving Centers (NSCs) and urged the government take immediate action in this regard.
KCCI President Shariq Vohra in a statement, while expressing deep concerns over the sudden stoppage of payments by NSCs, urged the government to look into this serious issue as any delay in these payments would intensify the hardships mostly for the senior citizens including retired individuals and widows whose lives depend on timely payments.
The President KCCI pointed out that KCCI has received numerous complaints as the returns of many individuals against their investments in NSC certificates have been put on hold without a valid reason and they all were extremely worried about it.
“It is a well-known fact that these payments belong mostly to senior citizens and widows whose lifetime savings are invested in certificates so that they could utilize the monthly returns on their daily bread and butter. Hence, it is really unfair to stop such critically and economically important payment,” he added.
He said that on one hand, the Federal Ombudsman has directed the Pakistan Post to digitize all Post Offices by February 2021 to avoid delay in payment of profits against saving certificates issued to senior citizens and widows but on the other hand, this important segment remains deprived as their request for release of outstanding payment has been turned down.
He stressed that in order to facilitate the senior citizens, the National Saving Center has to be completely digitalized and its operations should be improved as per banking standards while the profits payable should instantly be transferred into the personal accounts of its account holders, which would be widely welcomed as the senior citizens will not be required to visit saving centers every month to claim their dues and they will be able to access their profits online.
President KCCI requested the Ministry of Finance and the State Bank of Pakistan to issue directives for immediate release of payments to the masses so that their lives were not disturbed.
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Petroleum levy collection registers 100 percent increase
ISLAMABAD: The collection of petroleum levy has registered almost 100 percent increase during the first half of the current fiscal year, according to official statistics made available on Saturday.
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Motor vehicle tax collection grows by 15pc to Rs12.7 billion in 1HFY21
ISLAMABAD: The collection of motor vehicle tax has increased by 15 percent to Rs12.7 billion during the first half (July – December) of 2020/2021 owing to improved business and commercial activities after ease in coronavirus lockdown.
According to official statistics made available on Saturday, the motor vehicle tax collected by all the provinces increased to Rs12.7 billion during the first half of the current fiscal year as compared with Rs11 billion in the corresponding half of the last fiscal year.
Province wise collection data revealed that Punjab had contributed the major chunk under this head. The Punjab province collected Rs7.08 billion as motor vehicle tax during first half of the current fiscal year as compared with Rs6.52 billion in the corresponding half of the last fiscal year.
In terms of growth, the Sindh province registered an increase of 28.48 percent to Rs4.28 billion during the period of July – December of the current fiscal year as compared with Rs3.33 billion during the same period of the last fiscal year.
The collection of motor vehicle tax by the province of Khyber Pakhtunkhwa registered an increase of 2.24 percent to Rs865 million during the first half of the current fiscal year as compared with Rs846 million in the corresponding half of the last fiscal year.
The Balochistan province collected Rs413 million as motor vehicle tax during July – December 2020/2021 as compared with Rs303 million in the same period of the last fiscal year.
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Retail price defined under Sales Tax Act
Sales Tax Act, 1990 has defined ‘retail price’ as a price fixed for sales of goods to the end consumers.
The Sales Tax Act, 1990 [updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR)] defines the ‘retail price’ with reference to the Third Schedule of the Act, as the price fixed by the manufacturer or importer, in case of imported goods, inclusive of all duties, charges and taxes (other than sales tax) at which any particular brand or variety of any article should be sold to the general body of consumers or, if more than one such price is so fixed for the same brand or variety, the highest of such price:
Provided that the FBR may through a general order specify zones or areas for the purpose of determination of highest retail price for any brand or variety of goods.
The Act also defines the work retailer as a person supplying goods to general public for the purpose of consumption:
Provided that any person, who combines the business of import and retail or manufacture or production with retail, shall notify and advertise wholesale prices and retail prices separately, and declare the address of retail outlets.
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Customs reluctant to give WeBOC access to ANF
KARACHI: Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotics Force (ANF) said that the force has not direct access to export related documents on Customs online system i.e. WeBOC, according to a statement issued on Saturday.
He said that ANF does not require any sort of undertaking or affidavit from a clearing agent or exporter. “If somebody from the terminal operators demands such a document then it is not under the instruction of ANF,” he said while talking to office bearers of Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
While responding to the issues raised by participants of the meeting, said that it is high time to put combined efforts into the development of the economy in Pakistan.
He further informed that drug smuggling is a transnational crime. Federal Board of Revenue (FBR), Customs, Coast Guards, ANF and other departments are working under their authorities. “We do not receive BL, invoice, or other documents, and Customs are reluctant to permit us access to the WeBOC system,” he added.
Mian Nasser Hyatt Maggo, President of FPCCI while welcoming Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotic Force Karachi stated that repacking of the exported goods after examination caused delays, cost and confidence of the buyers.
The President FPCCI also appreciated the working of the force especially during the lockdown due to COVID-19. He added that the problems of the trade to the extent of 70 – 80 percent have been solved due to cooperation of the force officials.
However there are still some problems being faced by the trade and industry such as repacking of the export cargo after examination by ANF.
The export cargo after examination is usually stuffed and the worthy factory packing is disturbed due to which there are complaints from the buyers that the packing of the goods is not satisfactory.
There is a need of updating the information of precursor chemicals within the ANF staff working at ports. This may be achieved with joint sessions of ANF and stakeholders.
There should be a fixed time period by the ANF for breaking the seal of the container so that the clearing agent may line himself up for examination accordingly. This will also save the exporter from shutting out of his containers by the shipping agents and could be exported in time.
The meeting was attended by Athar Sultan Chawla, Arif Jeeva Vice Presidents, Muhammad Ayub in charge of the port control unit Anti-Narcotics Force Khurram Ijaz, Waseem Vohra former Vice Presidents and Shabbir Mansha,
Convener FPCCI Committee on Customs. Meeting was concluded with the presentation of FPCCI crest to the Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotic Force Karachi.