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Author: Mrs. Anjum Shahnawaz

  • Gift parcels above $5000 not allowed for export

    Gift parcels above $5000 not allowed for export

    ISLAMABAD: The ministry of commerce has recently issued Export Policy Order 2020 under which export of gift parcels of a value exceeding five thousand US dollars are not allowed.

    The ministry issued SRO 901(I)/2020 dated September 25, 2020 and explained export of goods allowed under the policy.

    Export of goods

    (1) Export of all goods shall be allowed except those specified in Schedule-I.

    (2). Notwithstanding anything contained in sub-paragraph (1), no goods should be allowed to be exported to India, except therapeutic products regulated by the Drug Regulatory Authority of Pakistan.

    (3). Export of goods specified in Schedule – II shall be subject to the conditions given therein.

    (4) The provisions of this Order shall not apply to-

    (a) any goods constituting the stores or equipment or machinery parts and kitchenette of any outgoing vessel, conveyance or airline or the bona-fide accompanied baggage of the crew or of the passengers in such vessel or conveyance or airline:

    Provided that banned or restricted items shall not be allowed unless otherwise authorized;

    (b) any goods trans-shipped at a port in Pakistan after having been manifested for such trans-shipment at the time of dispatch from a port outside Pakistan:

    Provided that goods mentioned in clauses (a) to (h) do not contain control lists commodities, which are subject to licence from Strategic Export Control Division, Ministry of Foreign Affairs;

    (c) any goods, stores or equipment when sold abroad on Government-to-Government basis or exported under an export authorization issued by any officer authorized by the Ministry of Defense in this behalf;

    (d) export of samples subject to the following conditions, namely: –

    (i) that the export of such goods is not banned; and

    (ii) any number of samples subject to the condition that their freight on board (F.O.B) value does not exceed twenty-five thousand US dollars or equivalent per exporter per annum except automobile manufacturers who may export samples for free on board value not exceeding one hundred thousand US dollars and pharmaceutical exporting companies which may export free samples to the extent of ten percent of the commercial exports quantity of preceding year. However, pharmaceutical exporting companies may export free samples to the extent of twenty per cent of the quantity of first consignment at the time of launch of a product:

    Provided that the monetary limit of twenty-five thousand US dollars shall not be applicable if the samples are exported in a mutilated form;

    (e) export of gift parcels, except banned or restricted, of a value not exceeding five thousand US dollars or equivalent in Pakistani Rupees;

    (f) export of relief goods to any part of the world by National Disaster Management Authority;

    (g) bona fide baggage of persons traveling outside Pakistan; and

    (h) persons traveling outside Pakistan may take with them as accompanied baggage, goods without any restriction of quantity, or any requirement of encashment certificates provided that such goods do not include items listed in Schedule I and that in respect of items of Schedule II, the prescribed conditions have been met with.

    (5) Transit and border trade shall be allowed under the procedure prescribed for that purpose:

    Provided that items falling under export control on goods, technologies, material and equipment related to the Nuclear and Biological Weapons and Their Delivery Systems Act, 2004 (V of 2004) shall not be allowed unless authorized.

  • MoU signed for digital platform to support Mutual Fund Industry

    MoU signed for digital platform to support Mutual Fund Industry

    The Mutual Funds Association of Pakistan (MUFAP) and the Central Depository Company (CDC) of Pakistan Limited, through its subsidiary ITMinds Limited, have signed a Memorandum of Understanding (MoU) to develop and implement a state-of-the-art digital platform.

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  • Meezan Bank honored with many titles at CFA Awards

    Meezan Bank honored with many titles at CFA Awards

    KARACHI: Meezan Bank has been awarded with many titles by the CFA Society of Pakistan, a member society of the CFA Institute, USA at its 17th Annual Excellence Awards ceremony held on October 2, 2020.

    A statement issued on Monday said that the bank had been declared as the ‘Best Bank of the Year’ and ‘Best Islamic Bank of the Year’ – 2019.

    The Bank has also been recognized as the ‘Corporate Finance House of the Year – Debt’ in recognition of its investment banking performance, providing ground-breaking tailored solutions and advisory services to blue chip corporate clients.

    Irfan Siddiqui – President and CEO, Meezan Bank and Ariful Islam – Deputy CEO, Meezan Bank received the awards from Dr. Reza Baqir – Governor, State Bank of Pakistan who graced the occasion as the Chief Guest.

    This is the first time that CFA Society of Pakistan has recognized Meezan Bank on an overall industry basis as the ‘Best Bank of the Year’, competing with some of the largest local and conventional players. The Bank has previously been recognized multiple times by the organization for its excellence in providing Islamic financial services to meet the needs of its diverse set of clients.

    As a pioneer of Islamic banking in Pakistan, Meezan Bank leads the Islamic finance industry, reaching a broad customer base with competitive, Shariah-compliant products and services.

    Commenting on the win, Irfan Siddiqui – President & CEO, Meezan Bank said, “We are honored to receive these awards from the CFA Society of Pakistan. This notable recognition reflects our commitment towards Shariah-compliant banking and the continuous effort and commitment that we have invested in over the years to strengthen our offering.

  • FBR officials found involved in exerting political pressure in administrative matters

    FBR officials found involved in exerting political pressure in administrative matters

    ISLAMABAD: Federal Board of Revenue (FBR) has taken strict notice against officials involved in exerting political influence in administrative matters.

    In an official note issued on Monday, the Member Admin, FBR warned all officials of Inland Revenue and Pakistan Customs to restrained from such activities as same would attract disciplinary action.

    The Member said that certain officers in total disregard to rules of Government Servants (Conduct) Rules, 1964 are exerting political/external pressures and interferences in connection with their posting/transfers etc.

    “At the outset let me clarify that it is a misconduct under the Government Servant (Conduct) Rules, 1964 read with Government Rule 2(4) of Government Servants (E&D) Rules, 1973 and attracts strict disciplinary action under the said rules,” the Member said.

    “However, at a first step let me warn all these officers to shun this attitude,” the Member said, adding that all these officers have been marked and necessary observations have been placed in their personal dossiers.

    He said that such observations would be done of the main considerations at the time of making their all career decisions including promotion and disciplinary proceedings besides placement and rotations.

    “Therefore, at the cost of the repetition every officer is once again advised to be cautious of the seriousness of this subject at all times,” the Member added.

  • Trade deficit increases by 2 percent in first quarter

    Trade deficit increases by 2 percent in first quarter

    Pakistan’s trade deficit has expanded by 2 percent in the first quarter (July – September) of the fiscal year 2020/2021, primarily driven by a notable increase in the import bill.

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  • SRB suspends sales tax registration of seven taxpayers

    SRB suspends sales tax registration of seven taxpayers

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of seven taxpayers who failed to comply with filing of returns for four consecutive tax periods.

    The SRB in a letter sent to Pakistan Automation Revenue (Pvt) Limited (PRAL) informed that the seven taxpayers had been suspended with immediate effect.

    The SRB said that under Section 25(1)(a)(ii) of the Sindh Sales Tax on Services Act, 2011 provides that registration of a registered person can be suspended where registered person ‘has failed to comply with its obligation under the Act.’

    Further, Rule 10 of the Sindh Sales Tax on Services Rules, 2011 also provides that where a registered person commits any act of fraud or deliberate and intentional non-payment, short payment or evasion of tax or non-filing of returns for four consecutive tax periods, the SRB or an officer of SRB authorized by the board in this behalf may suspend the registration of such person.

    The SRB said that during scrutiny of tax profiles of the taxpayers, that SRB’s registered persons had failed to file their Sindh sales tax monthly returns for the last four consecutive tax periods i.e. May 2020 to July 2020.

    This behavior of non-filing is in violation of the provincial tax laws.

  • Share market plunges by around 1000 points on rising political uncertainty

    Share market plunges by around 1000 points on rising political uncertainty

    KARACHI: The share market fell by around 1,000 points on Monday due to increase in headline inflation and rising uncertainty on political front.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,072 points as against 40,070 points showing a decline of 998 points.

    Analysts at Arif Habib Limited said that the market lost another 1206 points during the session, especially in the last half hour of trading.

    Over the weekend, release of CPI data hinted an increase in Policy rate as the negative real interests have increased post increase in CPI.

    Political uncertainty, on the other hand, has also caused panic amongst Investors.

    Gradual redemptions from Mutual Fund investors have so far resulted in market meltdown, however, non-blue chip stocks as well as off-board scrips have sustained heavy losses in terms of drop in prices as compared to blue chip stocks from their recent highs.

    Selling activity was observed almost across the board, with major contribution from E&P, Banks, O&GMCs sectors. Amongst scrips, HASCOL topped the volumes with 60.4 million shares, followed by UNITY (31.9 million) and KEL (29.1 million).

    Sectors contributing to the performance include Banks (-130 points), Power (-113 points), Fertilizer (-111 points), E&P (-103 points) and O&GMCs (-71 points).

    Volumes increased from 348.6 million shares to 409.9 million shares (+18 percent DoD). Average traded value also declined by 1 percent to reach US$ 76.5 million as against US$ 75.6 million.

    Stocks that contributed significantly to the volumes include HASCOL, UNITY, KEL, TRG and PIBTL, which formed 39 percent of total volumes.

    Stocks that contributed positively to the index include DAWH (+8 points), GHGL (+4 points), KOHC (+1 points), FML (+1 points) and ATLH (+0 points). Stocks that contributed negatively include HUBC (-74 points), ENGRO (-56 points), PPL (-50 points), TRG (-36 points) and COLG (-32 points).

  • Rupee gains 19 paisas against dollar

    Rupee gains 19 paisas against dollar

    The Pakistani Rupee gained 19 paisas against the US Dollar on Monday, closing at Rs164.32 compared to the previous closing rate of Rs164.51 on October 2, 2020, in the interbank foreign exchange market. This appreciation is attributed to reduced demand for import payments, market dealers reported.

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  • Policy unveiled to export goods to Afghanistan, Central Asian Republics

    Policy unveiled to export goods to Afghanistan, Central Asian Republics

    ISLAMABAD: The ministry of commerce has unveiled Export Policy Order 2020 and explained export of goods allowed against Pakistan currency to Afghanistan against Central Asian Republics.

    The ministry issued SRO 901(I)/2020 dated September 25, 2020, and stated regarding ‘exports to Afghanistan and through Afghanistan to Central Asian Republics’ that:

    (1) subject to the provisions of sub-paragraph (1) of paragraph 4, export of following perishable goods shall be allowed against Pakistan currency on filing of regular shipping bills without the requirement of E form, namely:

    (a) fruits;

    (b) vegetables;

    (c) dairy products; and

    (d) meat.

    (2) Export of the items in sub-paragraph (1) shall not be entitled to –

    (a) zero rating of sales tax on taxable goods;

    (b) rebate of central excise duty; and

    (c) payment of drawback of customs duty.

    (3) Subject to the provisions of sub-paragraph (1) of paragraph 4 and Schedule III, all items and commodities produced or manufactured in Pakistan, exported via land route or by air against irrevocable letters of credit, confirmed orders on realization of export proceeds through banking channel or advance payment, in convertible foreign currency, shall be allowed-

    (a) zero-rating of sales tax on taxable goods;

    (b) rebate of Federal excise duty; and

    (c) repayment or drawback of customs-duty:

    Provided that the above facility of duty and tax-exemption including refund of petroleum levy shall not be available to the export of petroleum products unless there is a Government-to-Government contract and export is done only through oil marketing companies (OMCs) duly registered with the Oil and Gas Regulatory Authority (OGRA).

    Surplus of JP-8, as declared and decided in the product review meetings, shall also be allowed to be exported by the refineries or OMCs.

    If any of the OMC is of the intention to import and then export JP-8 to Afghanistan, that specific volumes shall be allowed through foreign exchange remittance from the buyers without availing any exemption of duties and taxes.

    The proof that goods exported from Pakistan have reached Afghanistan shall be verified on the basis of copy of import clearance documents by Afghan Customs Authorities across the border:

    Provided further that this condition shall not apply to exports made to International Security Assistance Force (ISAF) and Defense Logistic Support Center (DLSC) in Afghanistan. To claim the facility of zero rating of sales tax or duty drawbacks as well as Federal excise duty refund against goods exported to ISAF and DLSC, the customs authorities shall allow refunds on the basis of receipts issued by the Afghan offices of these agencies confirming that they have received the goods. The receipt shall be reconfirmed by the representatives of these agencies in Pakistan;

    (4) Packages or retail packing shall prominently and indelibly be marked with the expression “For Export Only”, and in case of international donor agencies “For Export only – supply for aid to Afghanistan (insignia of the organization) not for sale in Pakistan”;

    (5) Export shall be allowed only through authorized export land routes i.e. Torkham, Chaman and Ghulam Khan and Qamar Uddin Karez.

    (6) Export from Export Processing Zones, manufacturing bonds and export-oriented units, except vegetable ghee and cooking oil, shall be allowed but these exports shall not be entitled to-

    (a) zero-rating of sales tax on taxable goods;

    (b) rebate of federal excise duty; and

    (c) repayment or drawback of customs-duty:

    Provided that the export of PVC and PMC (HS Code 3901-3914) materials from the Export Processing Zones, manufacturing bonds and export-oriented units shall be eligible for zero rating of sales tax:

    Provided further that export made to International Security Assistance Force (ISAF) and Defense Energy Support Center (DESC) may be made on deferred payment basis, without opening of letter of credit, subject to the following conditions, namely: –

    (a) the waiver shall be applicable strictly to exports made to ISAF and DESC;

    (b) shipments to ISAF and DESC are made by their authorized agents duly endorsed by the ISAF and DESC receiving agent in Afghanistan; and

    (c) payment of foreign exchange is received within sixty days of shipment.

    (7) Zero rating of sales tax or duty drawbacks as well as Federal excise duty refund against goods exported to ISAF and Defense Logistics Agency (DLA), may be allowed on production of receipts issued by ISAF and DLA confirming that they have received the goods. The receipts shall be reconfirmed by the representatives of these agencies located in Pakistan.

    (8) Export of such goods as are made by or on behalf of United Nations High Commissioner for Refugees, World Food Programme, United Nation Development Programme, United Nations Population Fund, International Committee of the Red Cross, World Health Organization, Food and Agriculture Organization, United Nations International Children’s Emergency Fund against international tenders, as relief goods to Afghanistan, shall be allowed the facility of normal duty drawback against payment in convertible foreign currency, through all standard modes of payment including letters of credit, advance payment and documents acceptance (DA) or deferred payment basis (DP).

    (9) Normal duty drawback shall remain available on exports to the Central Asian Republics via Iran.

    (10) Export of acetic anhydride to Afghanistan shall not be allowed till further orders.

  • Salaried persons pay Rs129 billion in Tax Year 2020

    Salaried persons pay Rs129 billion in Tax Year 2020

    ISLAMABAD: Salaried persons have paid Rs129 billion as income tax at source during tax year 2020, which is 70 percent higher than the collection under this head during preceding year, according to official documents.

    The FBR had collected Rs76 billion as income tax from salaried persons during tax year 2019.

    The FBR officials attributed to significant increase in income tax collected at source form salaried person was due to change in tax slabs through Finance Act, 2019.

    It is interesting to note that the exempt income chargeable to tax was increased to Rs600,000 from Rs400,000 for salaried persons through Finance Act, 2019.

    However, tax rate for salaried persons falling in the higher salary bracket had been increased up to 35 percent through the Finance Act, 2019.

    The tax officials said that share of tax collection from salary has been increased to 11.9 percent in the total collection of withholding taxes during Tax Year 2020.