ISLAMABAD: Federal Board of Revenue (FBR) has invited job applications for vacant posts (BPS-01 to BPS-14) at various collectorates/directorates of Pakistan Customs. The last date for submission of applications is October 27, 2020.
(more…)Author: Mrs. Anjum Shahnawaz
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TAX YEAR 2021: Rates of advance tax on imports
ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of advance tax on imports for tax year 2021 (July 01, 2020 to June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) after incorporating amendments brought through Finance Act, 2020. The FBR updated following rate of advance tax on import of goods:
S.No Persons Rate (1) (2) (3) 1. Persons importing goods classified in Part I of the Twelfth Schedule 1% of the import value as increased by customs-duty, sales tax and federal excise duty 2. Persons importing goods classified in Part II of the Twelfth Schedule 2% of the import value as increased by customs-duty, sales tax and federal excise duty 3. Persons importing goods classified in Part III of the Twelfth Schedule 5.5% of the import value as increased by customs-duty, sales tax and federal excise duty’; Provided that the rate specified in column (3),—
(a) in the case of manufacturers covered under rescinded Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 as it stood on the 28th June, 2019 on import of items covered under the aforementioned S.R.O shall be 1%;
(b) in case of persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan shall be 4%:
Provided further that the rate of tax on value of import of mobile phone by any person shall be as set out in the following table, namely:-
S.No. C & F Value of mobile phone (in US Dollar) In CBU condition PCT Heading 8517.1219 Tax (in Rs.) IN CKD/SKD condition under PCT Heading 8517.1211 Tax (in Rs.) (1) (2) (3) (4) 1 Up to 30 except smart phones 70 0 2 Exceeding 30 and up to 100 and smart phones up to 100 100 0 3 Exceeding 100 and up to 200 930 0 4 Exceeding 200 and up to 350 970 0 5 Exceeding 350 and up to 500 3,000 5,000 6 Exceeding 500 5,200 11,500 -
KTBA demands date extension for filing sales tax return
KARACHI: Federal Board of Revenue (FBR) has been informed that many taxpayers were unable to file their sales tax returns for September 2020 as FBR’s web-portal was stopped functioning.
Muhammad Zeeshan Merchant, President, Karachi Tax Bar Association (KTBA) in a letter on Monday apprised Muhammad Javed Ghani, Chairman, FBR about the malfunctioning of FBR’s web portal, which deprived many taxpayers in filing their sales tax returns for the period of September 2020.
The FBR chairman was informed that KTBA members had faced immense problems in e-filing the monthly sales tax return for the tax period of September 2020 which was due on October 18, 2020.
Merchant said that due to non-working of FBR web-portal for the last few days and it completely stopped functioning on Saturday October 17, 2020 and Sunday October 18, 2020.
The KTBA president also highlighted that many of the CPRs which were paid by using ADC-payment option were not reflecting in banks folders and consequently taxpayers were unable to upload their tax challans and therefore were unable to e-file the sales tax return for the tax period ‘September 2020’.
“Our members are also upset because they were not even in a position to apply for extension either manually or online as there is no provision available,” the KTBA president said.
The FBR chairman has been urged to extend the date of e-filing the monthly sales tax return for the tax period ‘September 2020’ at the earliest to facilitate bar members and the compliant taxpayer to fulfil their legal obligation properly.
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Hubco plans generating Rs6 billion through Sukuk
KARACHI: The Hub Power Company Limited (Hubco) through its wholly owned subsidiary, Hub Power Holdings Limited, is in the process of finalizing issuance of Sukuk, a statement said on Monday.
This represents Hubco’s keen interest in promoting and supporting the Islamic financing options and the local financial industry.
This proposed Sukuk in the sum of Rs6 billion for a tenor of 5-year, which is being partnered with Meezan Bank Limited as Shariah Advisor and Arif Habib Limited as its arranger will be available for subscription by financial institutions, investment companies and other eligible institutions.
These funds will be utilized to meet the ongoing capital requirements of the company.
With an aggressive growth plan and focus on growing the shareholder value, Hubco is pursuing opportunities in the domain of thermal energy, alternate energy and water treatment.
The Company has an installed capacity of producing over 2920MW through its four plants in Hub, Narowal and Azad Kashmir.
The Company is the only power producer in Pakistan with four projects listed in the CPEC, namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Coal Block II. Both the 330MW power plants in Thar Block II have achieved their financial close and are expected to meet their Commercial Operations Date (COD) in 2021 and 2022.
Being a domestic source of energy fuel, the power generation and mining projects in Thar Coal are expected to fortify the energy security of the country and would bring about substantial savings in foreign exchange of the Country.
The Company is also investing in the Community Development Programs in the fields of health, education, livelihood and basic infrastructure in the vicinity of its plants.
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Meezan Bank becomes pioneer in Sharia financing for low cost housing
KARACHI: Meezan Bank has become the first financial institution in the country to disburse the first two Shariah-compliant housing finance facilities under Prime Minister’s Mera Pakistan Mera Ghar, Low Cost Housing Finance scheme, a statement said on Monday.
The facilities were disbursed to Muhammad Anees, who works as a Gardener (Mali) and Muhammad Shahid Khan, a contract employee in a private company. Both the individuals will use the funds to build homes for their families on small plots of land that they own.
Disbursement Advice for the financing were handed over to Anees and Shahid by Arshad Majeed, Group Head Consumer Finance- Meezan Bank at the State Bank of Pakistan (SBP) on Friday October 16, 2020 in the presence of Ms. Sima Kamil, Deputy Governor, State Bank of Pakistan, Syed Samar Hasnain, Executive Director, State Bank of Pakistan and Irfan Siddiqui, Founding President & CEO, Meezan Bank.
Speaking at the occasion, Irfan Siddiqui said: “We are delighted to be the first bank in the country to make a disbursement under the Prime Minister’s Low-cost housing finance scheme and look forward to contributing towards this important sector which directly and indirectly supports over 40 industries and employs a very large percentage of the unskilled labour of the country.”
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Contracts worth Rs5.11 billion awarded for next generation broadband
ISLAMABAD: The Universal Service Fund (USF) on Monday approved award of contracts to Telenor, Zong, Ufone and PTCL worth Rs5.11 billion through the Next Generation Broadband for Sustainable Development program and the Next Generation Optical Fiber Network and Services program.
Federal Secretary Ministry of IT and Telecommunication Shoaib Ahmad Siddiqui chaired 74th Board of Directors meeting of Universal Service Fund (USF) on Monday.
PTCL is being awarded the contract of Kashmore, Ghotki, Sukkur and Khairpur districts in the province of Sindh.
The Next Generation Optical Fiber Network and Services projects worth approximately Rs3 billion is aimed at laying of 1078 km of Optical Fiber Cable to connect 140 villages and union councils thereby providing high speed mobile broadband services to an unserved population of approximately 4.7 million.
Moreover, the Board also approved award of contracts under the Next Generation Broadband for Sustainable Development Program worth Rs2 billion to Telenor, Zong and Ufone.
Telenor is being awarded the contract of Chitral, Upper Dir and Lower Dir districts in the province Khyber Pakhtunkhwa whereby an unserved population of around 0.7 million will benefit from high speed mobile broadband services in 648 unserved villages and an approximate unserved area of 18,212 sq. km.
Likewise, Zong is being awarded the contract of Karachi West and Malir districts in the province of Sindh that will benefit an unserved population of approximately 0.1 million in 36 unserved villages and approximately 690 sq. km of unserved area.
Similarly, Ufone is being awarded the contract of Mastung and Ziarat districts in the province of Balochistan to serve an unserved population of approximately 0.1 million in 226 unserved villages and an approximate unserved area of 6,324 sq. km.
During the meeting, Federal Secretary Ministry of IT and Telecommunication, Shoaib Ahmad Siddiqui said that as advised by the Federal Minister for IT and Telecommunication, Syed Amin Ul Haque, the basic purpose of these projects is not only to promote tourism infrastructure of the country but also to connect rural population with the digital world.
He also said that the Ministry of IT and Telecommunication is leaving no stone unturned to provide broadband services to every Pakistani and accomplish Digital Pakistan vision; therefore, people should remain hopeful that such development interventions will reach them soon as well.
Earlier, the Chief Executive Officer of USF, Haaris Mahmood Chaudhary briefed the Board members about the projects. He thanked the Federal Minister, Syed Amin Ul Haque, the Federal Secretary and Chairman of USF Board, Shoaib Ahmad Siddiqui and the Board members for entrusting him. He stated that USF ensures merit, transparency and timely completion of projects.
Furthermore, he added that USF’s contribution to Digital Pakistan vision remains distinguished. Other board members comprising Maj. Gen (R) Amir Azeem Bajwa, Chairman PTA; Shabahat Ali Shah, CEO-NITB; Irfan Wahab, CEO-Telenor Pakistan; Imran Akhtar Shah, VP for Government Sales, Super Net Pvt Ltd and Nominee of Data Licensees; Rashid Khan, CEO-PTCL and Nominee of Fixed Line Operators; Kaukab Iqbal, Chairman-Consumer Association of Pakistan and Nominee of Consumer Group; Muhamad Omar Malik, Member- Telecom and management of USF Co. also attended the meeting.
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Reduced rates of electricity, gas: ECC approves procedure for registration
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved the procedure of registration for availing reduced rate of electricity, RLNG and gas by manufacturers and industries.
Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting of ECC at the Cabinet Division.
The ECC approved in principle, the procedure for registration under the concessionary regime of electricity, RLNG and gas under the export oriented sectors (erstwhile zero-rated sectors) with instructions to ensure better targeting of the recipients of this subsidy.
The ECC decided that the previous list of manufacturers or exporters declared zero-rated by FBR (under condition (xii) of the SRO 1125) may be adopted in export oriented sectors. FBR may register new manufacturers or exporters of five export oriented sectors (erstwhile five zero rated sectors), in accordance with past precedents of STGO-117, under Commerce Division’s O.M No.1 (18)/2019 in manner specified by the FBR.
The FBR, Petroleum Division and Power Division may formulate periodic rechecking/monitoring/withdrawal strategy for previous and newly registered units along with procedure to penalize in case of misrepresentation and misuse.
The ECC discussed in detail on the Minimum Support Price (MSP) of Wheat in today’s session. The Ministry of National Food Security and Research briefed the ECC on different estimates gathered from Punjab, KP, Balcohistan and the Federal Capital.
During the discussion, it also came to the fore that there was a need to increase the MSP to support the farmer and to grow enough quantities in the next sowing season.
The forum also discussed the need to rationalize the prices of inputs for making them more affordable to the farmers, to support the rural economy through various measures and to increase the supply of wheat in the market so that the flour prices are brought down. It was also discussed to have a better system for gathering data regarding the agriculture sector.
ECC decided to form a committee with Syed Fakhar Imam, Dr. Hafeez Shaikh, Dr. Ishrat Hussain.Dr. Waqar Masood, Nadeem Baber, Abdul Razzaq Dawood, Asad Umar and Khusroo Bakhtiar as members, to thoroughly evaluate the proposal for the increase in the Minimum Support Price of wheat for the 20-21 crops.
The committee shall also prepare a proposal on subsidy on fertilizers mainly DAP which may be offered as a part of the package for the farmers so that their input cost is reasonable/ reduced.
It was also decided that the provinces should increase the wheat releases to stabilize/reduce the price of flour in the market. It was decided that the local governments will also be directed to specially monitor the prices of wheat and flour in the markets so that its prices may not be allowed to escalate for the common man. The committee shall present its proposal in the next meeting of ECC.
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Share market gains 176 points amid gathering of opposition parties
KARACHI: The share market witnessed an increase of 176 points on Monday amid gathering of combined opposition in financial hub of the country.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,340 points as against 40,164 points showing an increase of 176 points.
Market discounted the anticipated negative impact of the demonstration and gathering conducted by the combined Opposition parties against the incumbent government.
Analysts at Arif Habib Limited said that investor sentiment was already dampened at the close of session last week and it was anticipated to further deteriorate post allegations made by PML N leader on the military establishment.
Contrary to general expectation, the index sided with the positive expectation on the upcoming quarterly results that helped index trade green for most part of the session.
By the end of the ongoing week, FATF plenary session is also scheduled to be announced where Pakistan may get relief from Enhanced Follow-up List.
Fertilizer off-take numbers helped the listed Fertilizer stocks to post gains especially EFERT and ENGRO. Post announcement of its financial results last Friday, HBL gained further however, profit booking brought the stock price slightly lower from LDCP.
E&P sector also contributed positively to the index with earnings of 4 listed E&P companies due to be announced in the coming days.
Among scrips, UNITY topped the volumes with 53.6 million shares, followed by PIBTL (36.6 million) and FFL (26.7 million).
Sectors contributing to the performance include Fertilizer (+87 points), E&P (+31 points), O&GMCs (+19 points), Transport (+15 points) and Vanaspati (+14 points).
Volumes increased from 254.2 million shares to 319.6 million shares (+25 percent DoD). Average traded value also increased by 3 percent to reach US$ 49.0 million as against US$ 47.6 million.
Stocks that contributed significantly to the volumes include UNITY, PIBTL, FFL, KOSM and HASCOL, which formed 51 percent of total volumes.
Stocks that contributed positively to the index include ENGRO (+62 points), EFERT (+23 points), MARI (+20 points), MEBL (+16 points) and PIBTL (+15 points). Stocks that contributed negatively include HBL (-13 points), MCB (-12 points), POL (-5 points), PAKT (-5 points) and NBP (-5 points).
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Rupee gains 11 paisas against dollar
KARACHI: The Pak Rupee gained 11 paisas against dollar on Monday owing to improved economic indicators.
The rupee ended Rs162.38 to the dollar from last Friday’s closing of Rs162.49 in interbank foreign exchange market.
The currency experts said that positive sentiments were prevailed during the day due to foreign inflows in shape of export receipts and workers remittances.
Workers’ remittances remained above $2 billion for the fourth consecutive month in September.
They increased to $2.3 billion, 31.2 percent higher than the same month last year and 9 percent higher than in August, the State Bank of Pakistan (SBP) recently said.
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Import of mobile phones allowed Rs23.15 billion as tax concession
ISLAMABAD: Federal Board of Revenue (FBR) issued details of sales tax concessions to the tune of Rs23.15 billion granted on import mobile phones.
The FBR issued the cost of allowing reduced rate of sales tax on the import of cellular phones during fiscal year 2020.
FBR sources said that the beneficiaries of sales tax concessions were importer and general public.
Following table explains head wise cost of sales tax concession on import different type of mobile phones;
S. No. Value of mobile phones Sales tax concession 1 Cellular mobile phones (not exceeding US$ 30) Rs2,424 million 2 Cellular mobile phones (exceeding US$ 30 but not exceeding US$ 100) Rs 10,032 million 3 Cellular mobile phones (exceeding US$ 100 but not exceeding US$ 200) Rs5,764 million 4 Cellular mobile phones (exceeding US$ 200 but not exceeding US$ 350) Rs 1,239 million 5 Cellular mobile phones (exceeding US$ 350 but not exceeding US$ 500) Rs 56 million 6 Cellular mobile phones (Exceeding US$ 500) Rs 731 million 7 Cellular mobile phones (PTA – DIRBS) Rs2,908 million