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Author: Mrs. Anjum Shahnawaz

  • Zong awarded contract to provide 4G coverage in rural, remote areas

    Zong awarded contract to provide 4G coverage in rural, remote areas

    ISLAMABAD: The Universal Service Fund (USF) has awarded contracts worth Rs112 million to Zong 4G for providing 4G network coverage in rural and remote areas of Sindh and Balochistan.

    Federal Minister of IT and Telecommunication, Syed Amin Ul Haque inaugurated the projects at a ceremony held at Zong 4G Headquarters on Wednesday.

    The contracts were signed by Haaris Mahmood Chaudhary, CEO, USF with Wang Hua, Chairman and CEO, Zong 4G.

    The Federal Secretary for IT & Telecommunication Shoaib Ahmed Siddiqui and Chairman PTA, Major General (R) Amir Azeem Bajwa were also present at the ceremony.

    Chief Guest of the ceremony, Federal Minister for IT and Telecommunication, Syed Amin Ul Haque said: “To achieve the Digital Pakistan vision, it is imperative that all areas and citizens of Pakistan have access to mobile phones and Broadband services.

    “This will ensure that not only is the citizenry connected to the digital world but they will be in a position to benefit and use Information Communication Technology (ICT) facilities.”

    He informed that the Government is working arduously on mobile phone applications, web portals, e-commerce, e-government, online jobs, digital payments, establishment of IT parks and all other avenues which are related to the Digital Pakistan vision.

    The Federal Minister congratulated Zong 4G and USF on the signing of the contracts and expressed the hope that this will ensure that residents living in remote areas of Baluchistan and rural pockets of Karachi will have better connectivity through Zong 4G’s superior technical expertise.

    He stated that USF is working on projects worth billions of rupees which include laying optical fiber, deploying telecommunication infrastructure and expanding networks.

    Furthermore, he announced that Ministry of IT and Telecommunication with USF’s support will be launching new development projects pertaining to network and Broadband expansion monthly.

    While sharing his views at the ceremony, Zong 4G’s Chairman and CEO Wang Hua said: “Since its inception, Zong 4G has been at the forefront of digital transformation in Pakistan, striving to bring the unserved and underserved areas and masses under the folds of connectivity and digital inclusion.

    “We thank USF for awarding us these projects and the government of Pakistan for supporting us in pursuing our passion for an empowered and Digital Pakistan.

    “We stay committed to our mission of serving the Pakistani people in all possible ways and a project like this simply fuels that passion of ours.”

    Also, sharing his thoughts at the ceremony, CEO USF, Haaris Mahmood Chaudhary said: “These projects will benefit an unserved population of 0.5 million in 263 unserved Mauzas, thereby covering an unserved area of 4,121 sq.km. of Nasirabad, Jaffarabad, Sohbatpur, Karachi West & Malir districts.”

    “As advised by the Federal Minister for IT and Telecommunication, USF is actively working to provide robust connectivity in unserved and underserved areas of Pakistan. We are committed to playing our role in making Digital Pakistan vision a reality and bridging the digital divide.”

    Senior officials of the Ministry of IT and Telecommunication, USF and Zong 4G were also present at the ceremony.

  • KTBA demands time relief for submitting annexures H, F

    KTBA demands time relief for submitting annexures H, F

    KARACHI: Karachi Tax Bar Association (KTBA) on Wednesday demanded the tax authorities to condone time-limit for submitting annexures ‘H’ and ‘F’ of monthly returns for claiming sales tax refunds.

    The tax bar in a letter to Member Inland Revenue (Operation) of Federal Board of Revenue (FBR), said that a large number of taxpayers had failed to rectify the details of their stock position through annexure ‘H’ and value addition through annexure ‘F’. Due to this sales tax refund was stuck up since July 2019.

    The tax bar urged the tax authorities to grant general condonation of 60-day time to taxpayers for filing revised annexures ‘H’ and ‘F’ of sales tax returns related to tax periods from July 2019 onwards to e-file pending refunds claims.

    In a letter sent to the Dr Muhammad Ashfaq Ahmed, Member IR (Operations), KTBA appreciated the efforts of the FBR to ensure speedy liquidation of sales tax refunds in consonance with Prime Minister’s Covid -19 Relief Package.

    The tax bar highlighted that due to prolonged pendency, there were anomalies in annexures F and H and gaps and contradictions in its supporting documents had rendered a sizeable quantum of refund claims pending with the FBR, and all such taxpayers required to file revised Annexures F and H from July 2019 on a sequential basis.

    Although the Commissioner Inland Revenue empowered to condone such cases under section 74 of the Sales tax Act 1990 but the KTBA sought a general condonation and extension of time limit.

    The KTBA said that it would help the taxpayers to file annexures F and H without wastage of time.

  • KSE-100 index declines by 199 points on US elections, global markets

    KSE-100 index declines by 199 points on US elections, global markets

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) on Wednesday declined by 199 points over investors attention on US elections and global commodity markets.

    The KSE-100 index closed at 40,280 points as against 40,481 points showing a decline of 199 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note and added another 434 points in addition to yesterday’s 1368 points jump in the index.

    However, profit booking kept a check on the additional points, keeping the index movement in the positive zone between +150 points and +400 points in the early hours. E&P, Cement, Banks and Fertilizer sector stocks contributed to the trading in that phase.

    US Elections also had local investors attention, conjecturing the prospects of Trump’s winning on global stock markets as well as Commodity markets.

    Selling pressure brought key stocks in Banking, Cement and O&GMCs sectors close red. Among scrips, UNITY contributed 47.7 million shares, followed by FFL (34.7 million) and HASCOL (30.3 million).

    Sectors contributing to the performance include Banks (-88 points), Cement (-45 points), Power (-41 points), Pharma (-25 points) and O&GMCs (-21 points).

    Volumes increased from 383.9 million shares to 427.8 million shares (+11 percent DoD). Average traded value however, increased by 1 percent to reach US$ 87.0 million as against US$ 86.3 million.

    Stocks that contributed significantly to the volumes include UNITY, FFL, HASCOL, FFBL and TRG, which formed 36 percent of total volumes.

    Stocks that contributed positively to the index include FFBL (+14 points), OGDC (+12 points), MTL (+11 points), TRG (+10 points) and COLG (+10 points). Stocks that contributed negatively include HBL (-38 points), HUBC (-37 points), UBL (-27 points), PSO (-17 points) and BAHL (-17 points).

  • SRB issues sales tax rates on banking services

    SRB issues sales tax rates on banking services

    The Sindh Revenue Board (SRB) has announced a 13% sales tax rate on services provided by banking companies within the province. This update, effective from November 1, 2020, clarifies the applicable sales tax on a wide range of banking services.

    (more…)
  • Pakistan exports goods worth $7.55 billion in four months

    Pakistan exports goods worth $7.55 billion in four months

    ISLAMABAD: Pakistan has exported goods worth $7.55 billion during the first four months (July – October) 2020/2021 as compared with $7.52 billion in the corresponding period of the last fiscal year, showing nominal increase of 0.33 percent, according to data released by Pakistan Bureau of Statistics (PBS) released on Wednesday.

    On the other hand, imports fell by 0.79 percent to $15.13 billion during the first four months of the current fiscal year as compared with $15.25 billion in the corresponding months of the last fiscal year.

    The trade deficit also contracted by 1.88 percent to $7.57 billion during the period under review as compared with the trade deficit of $7.72 billion in the same period of the last year.

    The exports during the month of October 2020 increased by 3.07 percent to $2.08 billion as compared with $2.02 billion in the same month of the last year.

    Imports for the month fell by 5.73 percent to $3.82 billion as compared with $4.05 billion in the same month of the last year.

    The trade deficit reduced by 14.46 percent to $1.74 billion in October 2020 as compared with a trade deficit of $2.03 billion in the same month of the last year.

  • Rate of advance tax on sale, purchase of immovable properties

    Rate of advance tax on sale, purchase of immovable properties

    ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of advance tax on sale and purchase of immovable properties during tax year 2021 (July 01, 2020 to June 30, 2021).

    The FBR issued Income Tax Ordinance, 2001 (Updated up to June 30, 2020) after incorporating amendments introduced through Finance Act, 2020.

    The FBR updated the rate of tax to be collected under section 236C of Income Tax Ordinance, 2001. The advance tax rate shall be one percent of the gross amount of the consideration received.

    The rate of advance tax shall be two percent on a person for not appearing on Active Taxpayers List (ATL).

    Following is the text of Section 236C of the Ordinance:

    236C. Advance Tax on sale or transfer of immovable Property.—(1) Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:

    Explanation,—For removal of doubt, it is clarified 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.

    Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service.

    (2) The Advance tax collected under sub-section (1) shall be adjustable.

    Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.

    (3) Advance tax under sub-section (1) shall not be collected if the immovable property is held for a period exceeding four years.

    The FBR also updated rate of advance tax on purchase of immovable properties. The rate of tax to be collected under section 236K shall be one percent of the fair market value.

    The advance tax rate shall be two percent on a person for not appearing on Active Taxpayers List (ATL).

    The text of Section 236K of Income Tax Ordinance, 2001:

    236K. Advance tax on purchase or transfer of immovable property.—(1)Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the purchaser or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.

    Explanation,—For removal of doubt, it is clarified 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.

    (2) The advance tax collected under sub-section (1) shall be adjustable.

    (3) Any person responsible for collecting payments in installments for purchase or allotment of any immovable property where the transfer is to be effected after making payment of all installments, shall at the time of collecting installments collect from the allotee or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.

    (4) Nothing contained in this section shall apply to a scheme introduced by the Federal Government, or Provincial Government or an Authority established under a Federal or Provincial law for expatriate Pakistanis:

    “Provided that the mode of payment by the expatriate Pakistanis in the said scheme or schemes shall be in the foreign exchange remitted from outside Pakistan through normal banking channels.”

  • Import bill falls by over 10 percent in October; export witnesses 2.1 percent growth

    Import bill falls by over 10 percent in October; export witnesses 2.1 percent growth

    ISLAMABAD: The country’s import bill has witnessed decline by 10.3 percent to $4.07 billion in October 2020 as compared with $3.65 billion in the same month of the last year.

    Meanwhile, the exports have witnessed an increase of 2.1 percent to $2.06 billion in October 2020 as compared with $2.02 billion in October 2019.

    To review the current export trends, a meeting was held on Tuesday, in the Ministry of Commerce, under the Chairmanship of the Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood.

    The trade deficit shrank by 22.6 percent in October 2020 to $1.587 billion, showing an improvement of $463 million over October 2019.

    The advisor was also briefed that during July-October 2020 the exports decreased only marginally by 0.1 percent. The exports during this period stood at $7.54 billion as compared to $7.547 billion during the same period last year.

    He was informed that, during July-October 2020, the balance of trade has witnessed a decline of 4.5 percent to $7.424 billion as compared to $7.776 billion last year.

    The Advisor expressed his satisfaction at the export trends and praised Pakistan’s exporters who made it possible for bringing the exports to pre-COVID-19 levels despite uncertainty and contraction in Pakistan’s major markets.

    He was also briefed on the major export product trends and was informed that during July-October 2020, the export increases were mostly in the value added sectors.

    The increases were witnessed in Home Textiles (10.0 percent), Women’s Garments (20.8 percent), Jerseys & pullovers (35.3 percent), Made-up articles of textile (10.4 percent), Stockings & socks (19.2 percent), Cement (10.8 percent), Pharmaceutical products (26.8 percent), Tarpaulins (66.8 percent), and Made-up clothing accessories (245.2 percent) as compared to the same period last year.

    He was informed that, as compared to the same period last year, the export decreases during July-October 2020 were seen in mostly the non-value added sectors such as Cotton Fabric (-8.0 percent), Cotton yarn (-40.1 percent), Worn clothing (-63.6 percent), Raw Leather (-38.4 percent), Crude Petroleum (-53.7 percent), and Cotton (-95.7 percent). The Advisor was also briefed on the geographical spread and growth of exports.

    He was informed that, as compared to the same period last year, Pakistan’s top five growing markets during July-October 2020 are Indonesia (39.3 percent), Qatar (34.5 percent), Denmark (24.9 percent), S. Korea (22.5 percent) and Afghanistan (15.6 percent).

    The Advisor expressed his hope that Pakistan economy will continue on its upward recovery trend and he directed that the officials of Ministry continue to proactively facilitate exporters and businessmen.

    He further directed that no efforts should be spared to counter the effect of the second wave of COVID-19 in Pakistan’s major markets.

  • SRB issues sales tax rate on telecom services

    SRB issues sales tax rate on telecom services

    KARACHI: Sindh Revenue Board (SRB) on Tuesday updated working tariff up to November 01, 2020 for levy of sales tax on telecommunication services.

    The sales tax on services are exempt on telecommunication services involving charges payable on the international leased lines or bandwidth services used by the software exporting firms registered with the Pakistan Software Export Board.

    Following is the table for the application of sales tax on telecommunication services along with tariff headings:

    9812.1000Telephone services19.5%
    9812.1100Fixed line voice telephone service19.5%
    9812.1200Wireless telephone19.5%
    9812.1210Cellular telephone19.5%
    9812.1220Wireless Local Loop telephone19.5%
    9812.1300Video telephone19.5%
    9812.1400Payphone cards19.5%
    9812.1500Prepaid calling cards19.5%
    9812.1600Voice mail service19.5%
    9812.1700Messaging service19.5%
    9812.1710Short Message service (SMS)19.5%
    9812.1720Multimedia message service (MMS)19.5%
    9812.1910Shifting of telephone connection19.5%
    9812.1920Installation of telephone19.5%
    9812.1930Provision of telephone extension19.5%
    9812.1940Changing of telephone connection19.5%
    9812.1950Conversion of NWD connection to non NWD or vice versa19.5%
    9812.1960Cost of telephone set19.5%
    9812.1970Restoration of telephone connection19.5%
    9812.1990Others19.5%
    9812.2000Bandwidth services19.5%
    9812.2100Copper line based19.5%
    9812.2200Fibre-optic based19.5%
    9812.2300Co-axial cable based19.5%
    9812.2400Microwave based19.5%
    9812.2500Satellite based19.5%
    9812.2900Others19.5%
    9812.3000Telegraph19.5%
    9812.4000Telex19.5%
    9812.5000Telefax19.5%
    9812.5010Store and forward fax services19.5%
    9812.5090Others19.5%
    9812.6000Internet services19.5%
    9812.6100Internet services including email services19.5%
    9812.6110Dial-up internet services19.5%
    9812.6120Broadband services for DSL connection19.5%
    9812.6121Copper line based19.5%
    9812.6122Fibre-optic based19.5%
    9812.6123Co-axial cable based19.5%
    9812.6124Wireless based19.5%
    9812.6125Satellite based19.5%
    9812.6129Others19.5%
    9812.6130Internet/email/Data/SMS/MMS services on WLL networks19.5%
    9812.6140Internet/email/Data/SMS/MMS services on cellular mobile networks19.5%
    9812.6190Others19.5%
    9812.6200Data Communication Network services (DCNS)19.5%
    9812.6210Copper Line based19.5%
    9812.6220Co-axial cable based19.5%
    9812.6230Fibre-optic based19.5%
    9812.6240Wireless/Radio based19.5%
    9812.6250Satellite based19.5%
    9812.6290Others19.5%
    9812.6300Value added data services19.5%
    9812.6310Virtual private Network services (VPN)19.5%
    9812.6320Digital Signature service19.5%
    9812.6390Others19.5%
    1[9812.7000Other specified telecommunication services19.5%
    9812.7100Audio Text Services19.5%
    9812.7200Teletext services19.5%
    9812.7300Trunk radio services19.5%
    9812.7400Paging services including voice paging services and radio paging services19.5%
    9812.7900Others19.5%
    9812.8000Tracking and alarm service19.5%
    9812.8100Vehicle tracking and other tracking services19.5%
    9812.8200Burglar and security alarm services19.5%
    9812.8900Others19.5%
    9812.9000Telecommunication services not elsewhere specified]19.5%
  • FPCCI welcomes electricity tariff reduction

    FPCCI welcomes electricity tariff reduction

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has welcomed the decision of Prime Minister Imran Khan to provide relief industries by reducing electricity tariff.

    Mian Anjum Nisar, President FPCCI, at a press conference on Tuesday lauded the bold initiative to reduce electricity tariffs for SMEs and Industries.

    He said for a long, FPCCI was striving for a balanced electricity tariff for industries to compete with the regional trade.

    The struggle is now fulfilled and the government realized the issue. “The reduced electricity cost will also positively impact the local markets and will create a tendency to overcome inflation and lead to the spur of economic growth,” he added.

    Mian Anjum Nisar President FPCCI on behalf of the business, trade, and industries extend heartily congratulation for such a business friendly decision for the industry.

    Prime Minister Imran Khan during a post-cabinet meeting media briefing announced reduced energy costs for industrial sector. The prime minister said that from November 1, the additional electricity used by SMEs up to June 30, 2021, will be sold at 50 percent lower the cost.

    The prime minister also said that even the large industries, will pay reduced electricity costs at all times, without any concept of off-peak hours. The prime minister admitted that the industry was severely impacted during the lockdown period and it was now essential that industrial sector should be supported to perform well.

    Mian Anjum Nisar also addressed the business, trade, and industry sectors to avail full benefits of this facility and play their part to increase production and volume of export.

    Present Government has already decreased the policy interest rates and established a network of economic zones as Karachi Export Processing Zone, Risalpur Export Processing Zone, Sialkot Export Processing Zone, Gujranwala Export Processing Zone, Khairpur Special Economic Zone, Rashakai Economic Zone, Gadoon Economic Zone, Hathar Economic Zone, Quaid e Azam Business Park. And special economic zones SEZ National Science & Technology Park, Islamabad, JW-SEZ China-Pakistan SEZ Raiwind in Punjab, and Dhabeji SEZ in Sindh.

    This is the high time to put all energy and efforts into the enhancement of the socio-economic development of the country. Electricity relief packages will ultimately provide support in decreasing expenses and industries will be able to compete with their regional contemporaries.

  • Electricity tariff reduced up to 50pc on additional usage to promote industries

    Electricity tariff reduced up to 50pc on additional usage to promote industries

    ISLAMABAD: The government on Tuesday announced up to 50 percent reduction in electricity tariff on additional usage to promote industries in the country.

    Prime Minister Imran Khan announced a relief package for industrial sector with 50 percent reduction in rate of commercial electricity on additional usage by Small and Medium Enterprises.

    The announcement was made after the federal cabinet gave approval to the package.

    The Prime Minister said for next three years, all industries on additional usage of electricity would be provided 25 percent relief considering their previous bills.

    He also announced an end to peak-hour system for commercial electricity users, with provision of uniform electricity rates round the clock.

    Imran Khan said a strong infrastructure of energy was vital to help industries grow and compete with international market.

    He pointed that with 25 percent expensive electricity rates, Pakistan lagged behind India and Bangladesh in terms of exports.

    “It is extremely important for Pakistan to strengthen industrialization, which will lead to wealth creation and thus help pay off the debt,” he said.

    Imran Khan regretted that the contracts signed with power generation companies during previous tenures resulted in production of high-cost electricity, which remained unaffordable for industrial sector.

    During 2013-18, he mentioned that the country’s exports dipped from Rs 25 billion to Rs 20 billion as many industries were shut down due to high cost of electricity.

    The Prime Minister said soon after assuming the government, his team focused on increasing exports as “higher the exports, stronger the economy”.

    He expressed satisfaction that Pakistan ranked high among the countries of sub-continent in growth of exports during the pandemic of COVID-19.

    In view of the second wave of coronavirus, the Prime Minister appealed to the nation to continue wearing face masks to avert the risks and dangers of the disease.

    Minister for Industries and Production Hammad Azhar on the occasion said under the package, which was prepared on the special instructions of Prime Minister Imran Khan and approved by the cabinet today, the industries would be provided electricity at off-peak hours’ rate for 24 hours for next three years.

    The Small and Medium Enterprises (SMEs), he said, would be getting 50 percent tariff relief on the use of additional electricity, considering their bills of November 2019, during next six months, while all the industries would be provided with additional electricity on 25 percent reduced rates for next three years.

    Hammar Azhar said the decision would help boost economic growth, strengthen industry, increase exports, and create employment opportunities.