KARACHI: The local bourses may under pressure during next week owing to turmoil in international market, analysts said.
(more…)Author: Mrs. Anjum Shahnawaz
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FBR’s technical committee invites stakeholders’ suggestions to promote tax culture
ISLAMABAD: The Chairman of Technical Committee of Federal Board of Revenue (FBR), which was constituted by the Advisor to the Prime Minister on Finance and Revenue to create a taxpayer friendly environment, has invited suggestions for improving various functions of the tax machinery.
Abid Shaban, Chairman, FBR’s Technical Committee, in a communication on Friday said that the government placed great importance on taking measures, which would boost exports, speed up the process of industrialization, encourage local manufacturing, wealth creation and promote a tax culture in the country.
Facilitating taxpayers, ensuring tax compliance and enabling greater ease in compliance, and increasing the collection of legitimate tax revenues for the development of the country are high priority for the government, he said.
The chairman sought suggestions from stakeholders on the Terms of Reference (TOR) while stating problems, proposing a solution to the problem and listing possible benefits (including cost benefit) of the suggestions / ideas.
The TOR of the technical committee are:
(i) Identify distortion, anomalies and inequalities in the taxation system which cause difficulties for taxpayers, or which discourage investment, industrialization and documentation, and propose solutions.
(ii) Propose measures to reduce the dependence on withholding taxes, minimum tax, advance tax etc.
(iii) Propose measures for simplification of all taxation procedures, in a manner which does not compromise revenue collection and documentation.
(iv) Propose improvement in the temporary importation and manufacturing bond schemes in order to enhance their scope and facilitate direct and indirect exporters throughout the value chain.
(v) Identify issues hindering smooth processing of refund claims through the FASTER system. Propose amendments in the procedures or threshold to sales tax refund of various sub-sectors of exporters, and
(vi) Propose remedies for issues relating to adjustment of input tax paid against services subjected to sales tax by the provinces.
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Ministry releases Export Policy Order 2020
ISLAMABAD: The ministry of commerce on Friday issued Export Policy Order 2020 while making several changes to the old policy.
The ministry issued SRO 901(I)/2020 to release the export policy order.
The export policy order shall come into force at once, the ministry said.
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Import Policy Order 2020 issued
ISLAMABAD: The ministry of commerce on Friday issued Import Policy Order, 2020.
The import policy order shall come into force at once.
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Stock market sheds 105 points in range bound trading
KARACHI: The stock market fell by 105 points on Friday as the market witnessed range bound trading and selling pressure.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,701 points as against 41,806 points showing a decline of 105 points.
Analysts at Arif Habib Limited said that the last day of the rollover week replicated what was witnessed for the good part of the outgoing week, i.e range bound performance and selling pressure.
E&P, Cement and banking sector stocks contributed to the downside in Index, whereby OGDC and PPL saw selling pressure in Market on Close (MOC) session.
Cement sector stocks sustained selling pressure due to apprehensions on Competition Commission’s raid on APCMA. O&GMCs led the volume with 64.1 million shares, followed by Vansapati (47.5 million) and Refinery (43.6 million). Among scrips, HASCOL topped the volumes with 57.4 million shares, followed by UNITY (47.5 million) and BYBCO (28.4 million).
Sectors contributing to the performance include Cement (-85 points), Technology (-21 points), Insurance (-17 points), Power (+16 points), O&GMCs (+15 points).
Volumes almost remained the same at 435.0 million shares. Average traded value increased by 2 percent to reach US$ 93.0 million as against US$ 91.1 million.
Stocks that contributed significantly to the volumes include HASCOL, UNITY, BYCO, TRG and PIBTL, which formed 40 percent of total volumes.
Stocks that contributed positively to the index include HBL (+30 points), COLG (+21 points), BYCO (+12 points), HASCOL (+11 points) and KAPCO (+11 points). Stocks that contributed negatively include LUCK (-39 points), UBL (-22 points), TRG (-22 points), DGKC (-16 points) and MUREB (-14 points).
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Rupee gains 17 paisas in interbank foreign exchange market
The Pakistani Rupee appreciated by 17 paisas against the US dollar on Friday, closing at Rs165.79 in the interbank foreign exchange market. This marks an improvement from the previous day’s close of Rs165.96, as increased inflows of remittances and export receipts boosted the currency.
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List of persons required to get sales tax registration
KARACHI: Federal Board of Revenue (FBR) has issued list of persons who are mandatorily required to get sales tax registration under Sales Tax Act, 1990.
Following is the list of persons required to get sales tax registration:
a. All importers
b. All wholesalers (including dealers) and distributors
c. Manufacturers not falling in cottage industry. {Cottage industry means a manufacturer whose annual turnover from taxable supplies made in any tax period during the last twelve months ending any tax period does not exceed [ten] million rupees or whose annual utility (electricity, gas and telephone) bills during the last twelve months ending any tax period do not exceed [eight] hundred thousand rupees;}
d. Retailers (Tier-1 retailers means:
a. A retailer operating as a unit of a national or international chain of stores;
b. A retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
c. A retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees six hundred thousand; and
d. A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers;)
e. A person required under any Provincial or Federal Law to be registered for purpose of any duty or tax collected or paid as if it were a levy of sales tax, e.g. service providers like hotels, clubs, caterers, customs agents, ship chandlers, stevedores, courier services etc.
f. Persons making zero-rated supplies, including commercial exporter who intends to obtain sales tax refund against his zero rated supplies.
g. A person who is required to be registered by virtue of aforesaid criteria, but still avoids registration, can be compulsorily registered by the department, after proper enquiry, under sub- rule 1 of Rule 6 of Sales Tax Rules, 2006.
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MCC Preventive Karachi announces auction of motor vehicles on September 28
KARACHI: Model Customs Collectorate (MCC) Preventive, Karachi on Thursday announced auction of motor vehicles to be held on September 28, 2020 at Anti-Smuggling Organization (ASO) Headquarter, NMB Wharf, Ghass Bandar, East Wharf, Karachi.
Following vehicles to be presented for the auction:
01. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999CC, Chassis No. MCU-10-0013510
02. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, 1800HP, Chassis No. JZX110-6000922
03. Toyota Hilux Surf Jeep, Reg. No. UU-691, Model 1992, 240CC, Chassis No. LN130-7022502
04. Mercedes Saloon Car, Reg. No. ZA-030 (Islamabad), Model 2000, 3200CC, Color White, Chassis No. WDB1704652F205019
05. BMW Car (735i), Reg. No. yG-455 (Islamabad), Model 2003, Color Black, Chassis No. WBAGL42050DD81475
06. Toyota Mark-X, Reg. No. AEH-764, Model 2013, 2499CC, Chassis No. GRX-130-6077002
07. Honda Civic Saloon Car, Reg. No. BEE 563, Model 2006, Chassis No. FD3-1006033
08. Honda Civic Hybrid Car, Reg. No. GS-0487, Model 2005, Chassis No. FD3-1001034
09. Hilux Surf Jeep, Reg. No. X-5251, Model 1994, Chassis No. KZN130-9021459
10. Honda Civic Car, Reg. No. AJH-324, Model 2005, 1493CC, Chassis No. DAA-FD3-1000126
11. Toyota Premio Car, Reg. No. UG-424 (Islamabad), Model 2005, 1998CC, Chassis No. AZT-240-0021746
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Banks start sharing information with FBR
ISLAMABAD: Banks have agreed to share information of accountholders through a solution developed by IT department of the Federal Board of Revenue (FBR), a spokesman said on Thursday.
The spokesman said that the FBR and Pakistan Banks Association (PBA) have agreed on information sharing under Section 165 and Section 165A of Income Tax Ordinance, 2001.
It is agreed that banks will provide information to the FBR regarding cash withdrawal, deposits, payment through credit card and profit on debt.
The spokesman said that the solution would help the banks to instantly provide relevant information to the FBR.
The banks have agreed to provide information to the FBR through IT solution from September 18, 2020.
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Imran Khan for monitoring accountants, lawyers to stop financial crimes
ISLAMABAD: The ‘enablers’ of corruption and bribery, such as accountants, lawyers and other intermediaries, must be closely regulated, monitored and held accountable, said Prime Minister Imran Khan said on Thursday.
He was addressing through video link at the Launch of the Interim Report of the High-Level Panel on International Financial Accountability, Transparency and Integrity (FACTI) for Achieving the 2030 Agenda High-Level Launch Event and Panel Discussion.
The prime minster said that each year, billions of dollars illicitly flow out of developing countries.
“My Government came with a robust public mandate to get rid of this menace from our country. We have taken several initiatives domestically. What is needed, what is required is strengthening international cooperation to bring perpetrators of financial crime to justice,” he said.
The prime minister welcomed the Interim Report of the FACTI Panel. The figures of illicit flows mentioned in the Report are staggering. One trillion dollars is taken out each year by these white-collar criminals, he said.
Twenty to forty billion dollars is in the form of bribes received by these corrupt white-collar criminals. Seven trillion dollars in stolen assets is parked in safe tax ‘haven’ destinations.
Five to six hundred billion dollars is lost each year in tax avoidance by multinational companies.
This bleeding of the poorer and developing countries must stop. International community must adopt decisive actions and these are ones I propose:
One, the stolen assets of developing countries, including the proceeds of corruption, bribery, and other crimes, must be returned immediately.
Two, the authorities in “haven” destinations must impose criminal and financial penalties on their financial institutions which receive and utilize such money and assets.
Three, the “enablers” of corruption and bribery, such as accountants, lawyers and other intermediaries, must be closely regulated, monitored and held accountable.
Four, the “beneficial ownership” of foreign companies must be revealed immediately upon inquiry by interested and affected governments.
Five, multinational corporations must not be allowed to resort to “profit-shifting” to low tax jurisdictions for avoiding taxation. A global minimum corporate tax could prevent this practice.
Six, revenues from digital transactions should be taxed where the revenues are generated, not elsewhere.
Seven, Unequal investment treaties should be discarded or revised and a fair system for adjudication of investment disputes set up.
Eight, all official and non-official bodies set up to control and monitor illicit financial flows must include all the interested countries.
Nine, the UN should set up a mechanism to coordinate and supervise the work of the various official and non-official bodies dealing with illicit financial flows to ensure coherence, consistency and equity in their work.
The need of developing countries to protect and preserve their precious resources has become even more vital because of the recession triggered by COVID-19 pandemic.
He said that unless these steps are taken, the difference between the rich and poor will keep growing. The developing countries will get impoverished and what we see of the current migration crisis, this will be dwarfed by what will happen in the future, if this gulf keeps growing.