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Author: Mrs. Anjum Shahnawaz

  • Meeting decides speeding up installing video monitoring cameras at sugar mills

    Meeting decides speeding up installing video monitoring cameras at sugar mills

    ISLAMABAD: A high level meeting chaired by Prime Minister Imran Khan on Wednesday decided to speed up the process of installing video monitoring cameras at sugar mills to ensure transparency in production and supply.

    The prime minister was presiding over weekly review meeting regarding the availability and prices of basic commodities across the country.

    The meeting was briefed about the various measures taken in the light of Sugar Inquiry Report to keep the price of sugar under control. It was decided that the process of installation of cameras in sugar mills would be quickened.

    Besides, the Federal Board of Revenue (FBR) will provide the provincial governments with details of sales tax collected in the head of sugar so as to make the system transparent.

    The meeting was told that owing to the effective measures taken by FBR, the collection of sales tax from sugar had recorded 84 percent increase during July-January period of the current fiscal year.

    Prime Minister Imran Khan said that besides making the availability of basic commodities certain, ensuring appropriate prices was foremost priority of the government.

    He directed the administration of Utility Stores Corporation (USC) to ensure the ample availability of basic goods at all outlets.

    The meeting was attended by the relevant Federal and Provincial Ministers, Secretaries, Chief Secretaries and other senior officers.

    The prime minister directed the Ministry of National Food Security to complete at the earliest the assessment work regarding the future requirement of basic commodities like wheat and sugar so as to ensure advance arrangements in that regard.

    He directed all the chief secretaries to ensure the implementation of price list through active and effective role of the administration.

    The prime minister ordered to ensure immediate action against the officers committing any negligence in that respect.

    Minister for Finance Dr Hafeez Sheikh told the meeting that in the month of January 2021, the Consumer Price Index (CPI) was recorded at 5.7 percent as against 14.6 percent recorded in the corresponding month of previous fiscal year.

    Similarly, the CPI recorded at 8.2 percent during July-January period of the current fiscal was also lower when compared with 11.2 percent recorded during the same period of last fiscal, he added.

    The meeting was told that the comparison based on the latest statistics depicted significant decline in CPI.

    It was further told that the prices of sugar, eggs, onion etc. have recorded decline whereas the price of wheat flour had shown stability.

    The meeting was also briefed about the situation of official release of wheat along with the details of price differential at whole sale and retail levels in various districts.

    It was told that price differential at whole sale and retail levels depicted the failure of market committees.

    The meeting decided to immediately abolish the existing market committees in the two provinces ruled by Pakistan Tehrik-e-Insaf (PTI) and hand over the responsibilities to District and Tehsil administrations till the constitution of new committees comprising competent people through a transparent process.

    It was decided that in case of non-implementation of price list, action would be taken against the relevant Assistant Commissioner.

  • Definition of manufacturer or producer under Sales Tax Act

    Definition of manufacturer or producer under Sales Tax Act

    A definition of manufacturer of producer has been included into the Sales Tax Act, 1990 (updated up to June 30, 2020) issued by the Federal Board of Revenue (FBR).

    According to the definition “manufacturer” or “producer” means a person who engages, whether exclusively or not, in the production or manufacture of goods whether or not the raw material of which the goods are produced or manufactured are owned by him; and shall include –

    (a) a person who by any process or operation assembles, mixes, cuts, dilutes, bottles, packages, repackages or prepares goods by any other manner;

    (b) an assignee or trustee in bankruptcy, liquidator, executor, or curator or any manufacturer or producer and any person who disposes of his assets in any fiduciary capacity; and

    (c) any person, firm or company which owns, holds, claims or uses any patent, proprietary, or other right to goods being manufactured, whether in his or its name, or on his or its behalf, as the case may be, whether or not such person, firm or company sells, distributes, consigns or otherwise disposes of the goods :

    Provided that for the purpose of refund under this Act, only such shall be treated as manufacturer-cum-exporter who owns or has his own manufacturing facility to manufacture or produce the goods exported or to be exported.

    It further explains “manufacture” or “produce”, which includes:

    (a) any process in which an article singly or in combination with other articles, materials, components, is either converted into another distinct article or product or is so changed, transformed or reshaped that it becomes capable of being put to use differently or distinctly and includes any process incidental or ancillary to the completion of a manufactured product;

    (b) process of printing, publishing, lithography and engraving; and

    (c) process and operations of assembling, mixing, cutting, diluting, bottling, packaging, repacking or preparation of goods in any other manner.

  • What is input tax under Sales Tax Act?

    What is input tax under Sales Tax Act?

    The Sales Tax Act, 1990 as issued by the Federal Board of Revenue (FBR) as updated up to June 30, 2020 has explained input tax in relation to a registered person.

    The input tax in relation to a registered person has been explained as:

     (a) tax levied under this Act on supply of goods to the person;

    (b) tax levied under this Act on the import of goods by the person;

    (c) in relation to goods or services acquired by the person, tax levied under the Federal Excise Act, 2005 in sales tax mode as a duty of excise on the manufacture or production of the goods, or the rendering or providing of the services;

    (d) Provincial Sales Tax levied on services rendered or provided to the person; and

    (e) levied under the Sales Tax Act, 1990 as adapted in the State of Azad Jammu and Kashmir, on the supply of goods received by the person.

  • Agha Steel to install 2.25MW solar power project

    Agha Steel to install 2.25MW solar power project

    KARACHI: Agha Steel Industries has signed a contract with Renewable Power Pvt. Ltd. for installing a 2.25 Megawatt solar power project at its production facility located at Port Qasim Karachi, a statement said on Wednesday.

    Meezan Bank Ltd is the banking partner for this transaction. This would be among one of the largest solar power projects installed by a steel manufacturer in Pakistan.

    According to a statement this project will initiate a Green Steel Revolution at Agha Steel Industries by helping in sustainability of its energy mix and at the same time reducing the burden on national grid. The 2.25 Megawatt solar power project would also reduce the carbon emission by 46,000 tons in a lifespan of 20 years.

    This solar power plant, being installed on the self-consumption basis, will produce around 3.3 million units of clean and renewable electricity every year, which will result in a significant drop in the carbon footprint of Agha Steel Industries. The company is currently undergoing an expansion to increase its rebar capacity to 650,000 from current 250,000 tons per.

  • Budget deficit widens to 2.5 percent in first half: finance ministry

    Budget deficit widens to 2.5 percent in first half: finance ministry

    ISLAMABAD: The budget deficit has widened to 2.5 percent of the GDP during first half (July – December) of the current fiscal year 2020/2021 as compared with the deficit of 2.3 percent in the corresponding half of the last fiscal year, according to statistics released by the ministry of finance on Wednesday.

    According to the details, the total revenue was at Rs3,351 billion during the first half of the current fiscal year. Meanwhile, total expenditures was at Rs4,489 billion in the same period of the current fiscal year. Therefore, budget deficit stood at Rs1,138 billion or 2.5 percent of the GDP.

    The total tax revenue was recorded at Rs2,456 billion during the first half of the current fiscal year.  Out of which the contribution of the federal government was Rs2,210 billion and the rest Rs246 billion was by the provincial governments.

    The non-tax revenue was recorded at Rs895 billion out of which federal government contributed Rs484 billion and the provincial governments share was at Rs47 billion.

    The current expenditure has increased to Rs4,029 billion out of which the government’s mark up payments against loans were at Rs1,475 billion and defence expenditures were at Rs486 billion.

    The government spent Rs458 billion on development expenditure during the first half of the current fiscal year.

    The total revenue collection to GDP ratio during first half of the current fiscal year was at 7.4 percent. The total expenditure to GDP ratio was at 9.9 percent.

  • ECC approves renewal of gas supply agreement between SSGC, Fauji Fertilizer

    ECC approves renewal of gas supply agreement between SSGC, Fauji Fertilizer

    ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved the renewal agreement of gas supply between Sui Southern Gas Company (SSGC) and Fauji Fertilizer Bin Qasim Limited.

    Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the ECC of the Cabinet.

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Interior Sheikh Rasheed Ahmad, Minister for Privatization Muhammad Mian Soomro, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Federal Minister for Energy Omar Ayub Khan participated in the meeting.

    Petroleum Division placed a summary before ECC regarding renewal of Gas supply Agreement (GAS) between Sui Southern Gas Company Limited and Fauji Fertilizer Bin Qasim Limited.

    After detailed discussion, the ECC approved with a condition that renewal would be allowed on “as and when available basis” for a period of 05 years. SSGCL may restore the gas supplies to M/S Fauji Fertilizer till December, 2021 or until a uniform rate for the whole fertilizer sector is formulated after rationalization of tariffs (whichever is earlier).

    The ECC considered and approved another summary by the Petroleum Division for re-allocation of gas from Saqib-1A Well located in District Ghotki, Sindh Province to M/S Sui Southern Gas Company Limited from its previous allocation to SNGPL (as approved earlier by the ECC dated 06-10-2009). The price of gas will be as per the applicable Petroleum policy.

    Petroleum Division also moved a summary for removal of Dividend Distribution cap on Mari Gas Company Limited (MPCL) under Gas Pricing Agreement as the company is being considered for privatization.

    After due deliberation, the ECC allowed that the dividend distribution cap may be removed to ensure that the divestment transaction generates optimum sale proceeds for the Government.

    The Committee further decided that MPCL would ensure dividend distribution in accordance with the Provisions of Companies Act, 2017 and the Companies (Distribution of Dividends) Regulations, 2017.

    On the recommendation of the Ministry of Housing and Works, the ECC allowed the Ministry to utilize its own funds equal to Rs. 377.21 million for renewal of lease of Garden West (Pakistan Quarters), Karachi.

    The following Technical Supplementary Grants (TSGs) were approved by the ECC:

    a) Rs. 141.308 million to Ministry of Information and Broadcasting for an expenditure incurred on media campaigns to create awareness among public during COVID-19 pandemic.

    b) Rs. 9.025 million to Ministry of Information and Broadcasting for a media campaign on occasion of Kashmir Solidarity Day – 05 Feb. 2021.

    c) Rs. 5 million for purchase of spare parts for helicopter maintenance by HQs Pakistan Rangers (Punjab).

    d) Rs. 25 million for purchase of spare parts for helicopter maintenance by HQs Frontier Corps Balochistan (South).

    e) Rs. 10 million for repair and maintenance of helicopter by HQs Frontier Corps KP (South), D.I.Khan.

  • Leading sectors drive stocks to make 353 points gain

    Leading sectors drive stocks to make 353 points gain

    KARACHI: The Pakistan stocks witnessed a robust surge on Wednesday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gaining 353 points to close at 46,933 points. This positive movement was fueled by strong contributions from key sectors of the economy.

    (more…)
  • FBR exempts entire sales tax on import of 52 fire tenders

    FBR exempts entire sales tax on import of 52 fire tenders

    The Federal Board of Revenue (FBR) announced on Wednesday the exemption of sales tax and additional sales tax on the import of 52 fire-fighting vehicles.

    (more…)
  • Bank Alfalah declares 18pc decline in annual profit

    Bank Alfalah declares 18pc decline in annual profit

    KARACHI: Bank Alfalah Limited on Wednesday declared 18 percent decline in its annual net profit for year ended December 31, 2020 despite healthy growth in gain on securities.

    The after tax profit of the bank fell to Rs10.47 billion for the year 2020 as compared with Rs12.69 billion in the preceding year.

    The net mark-up and interest income was remained flat at Rs44.7 billion for the year under review as compared with Rs44.89 billion a year ago.

    The posted growth in non-markup/interest income to Rs12.79 billion for the year 2020 as compared with Rs10.35 billion in the preceding year. Under this head, the gain on securities sharply increased to Rs2.28 billion as compared with Rs64.79 million.

    The bank paid Rs7.4 billion as tax for the year as compared with Rs9.68 billion paid tax liability in the preceding year.

    The earnings per share of the bank fell to Rs5.89 from last year’s Rs7.15.

    Final cash dividend for the year ended December 31, 2020 has been announced at Rs2 percent share i.e. 20 percent. This is in addition to the interim cash dividend already paid at Rs2 per share i.e. 20 percent.

  • Rupee eases by two paisas on import payment demand

    Rupee eases by two paisas on import payment demand

    KARACHI: The Pak Rupee ended down by two paisas against the dollar on Wednesday owing to escalating demand for the foreign currency for import and corporate payments.

    The rupee ended Rs160.18 to the dollar from the previous day’s closing of Rs160.16 in the interbank foreign exchange market.

    Currency dealers said that the market witnessed higher demand of the foreign currency for import and corporate payments ahead of long week-end holidays.

    The government has announced a public holiday on February 05 (Friday) to mark Kashmir solidarity day. It will be along with two weekly holidays ahead making three holidays.

    The dealers remained optimistic that the rupee would regain the values in coming days owing to lower growth in headline inflation and improved exports numbers.

    The growth in headline inflation contracted by 5.7 percent on a year on year basis in January 2021 as compared to an increase of 8.0 percent in the previous month and 14.6 percent in January2020.

    On a month-on-month basis, it decreased by 0.2 percent in January 2021 as compared to a decrease of 0.7 percent in the previous month and an increase of 2.0 percent in January 2020.