Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR starts digital scrutiny of taxpayers’ information

    FBR starts digital scrutiny of taxpayers’ information

    ISLAMABAD: The Federal Board of Revenue (FBR) has established Tax Information Processing Unit (TIPU) for utilization of information available at multiple databases of the tax authorities.

    According to an office order issued on Monday, the FBR had embarked an ambitious plan for enhancing revenues, through efficient utilization power of IT for overall system improvement.

    “There is an emerging need for transforming existing raw data, available in multiple databases of the FBR, into meaningful insights, through which actionable steps may be suggested to field formation with regard to untapped revenue potential and potential leakages,” the FBR said.

    To realize the true potential of IT system, developed over years, it is imperative to engage a cross-functional team of professionals, available in FBR, who may perform following tasks, before generating meaningful insights from the datasets available in its IT systems: data mining; statistical analysis; data analytics; and MIS Reporting.

    The insights gained through data analysis may potentially generate actionable data which IR Operations Wing may convey to field offices, so that untapped revenue potential may be realized and potential leakages may be checked.

    The FBR said that in view of foregoing a cross functional TIPU had been established in IR Operations Wing, FBR manned by FBR’s regular workforce and temporary hiring of IT-experts, on need basis.

    The following officers are designated as domain team of the TIPU, under the supervision of Member IR Operatoins:

    a. Tariq Hussain Shaikh, Chief (IR&I)-Coordinator

    b. Ms. Rezwana Siddiqui, Chief (IR-Analysis)

    c. Zulfiqar Ali Gopang (S.S. IT)

    d. Naveed Afgan (Dy. Dir/Secy MIS)

    e. Syed Asif Jamil (AD/S.S

    f. Imran Ullah (AD-Audit)

    The FBR said that the TIPU would be operated IT experts, who would be hired on market-based salaries. The IT experts would design and develop IT modules, for data analytics.

  • Stock market gains 90 points in mixed trading

    Stock market gains 90 points in mixed trading

    KARACHI: The stock market gained 90 points on Monday in mixed trading activities during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,022 points as against 33,931 points showing an increase of 90 points (+0.3 percent DoD).

    Analysts at Arif Habib Limited said that the market traded in a narrow range today between +131 points and -111 points closing the session +90 points.

    E&P, Banking scrips largely remained positive, whereas Cement, Fertilizer and Pharma stocks faced selling pressure.

    Diminishing prospects of a further rate cut caused investor to shift focus on other sectors.

    Today’s release of CPI data, which came in line with street estimates (8.2 percent for the month of May 2020) hinted that there might not be any rate cut in near future.

    E&P sector got traction from an increase in international crude oil prices, which increased from the levels witnessed on Friday.

    Off board scrips, UNITY, TRG, HUMNL seemed to take pause today, whereas PAEL saw price gains, while trading near upper circuit.

    Technology stocks topped the volumes with 24.6 million shares, followed by Cable (23.5 million) and Banks (16.7 million). Among scrips, PAEL posted highest volumes with 22.7 million shares, followed by UNITY (14.2 million) and FFL (11.4 million).

    Sectors contributing to the performance include Banks (+165 points), E&P (+50 points), Cement (-40 points), Power (-19 points), Insurance (-18 points), Inv Banks (-17 points), Food (-12 points).

    Volumes declined from 233.1 million shares to 198.1 million shares (-15 percent DoD). Average traded value also declined by 29 percent to reach US$ 44.2 million as against US$ 62.4 million.

    Stocks that contributed significantly to the volumes include PAEL, UNITY, FFL, TRG and JSCL, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include MCB (+55 points), UBL (+36 points), OGDC (+34 points), HBL (+26 points) and BAHL (+24 points).

    Stocks that contributed negatively include HUBC (-20 points), LUCK (-17 points), DAWH (-14 points), NESTLE (-12 points), and MARI (-12 points)

  • Headline inflation increases by 8.2 percent in May

    Headline inflation increases by 8.2 percent in May

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) increased by 8.2 percent on year-on-year basis in May 2020 as compared to an increase of 8.5 percent in the previous month and 8.4 percent in May 2019, said Pakistan Bureau of Statistics (PBS) on Monday.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 0.8 percent in the previous month and an increase of 0.6 percent in May 2019.

    CPI inflation Urban, increased by 7.3 percent on year-on-year basis in May 2020 as compared to an increase of 7.7 percent in the previous month and 8.5 percent in May 2019.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 0.7 percent in the previous month and an increase of 0.7 percent in May 2019.

    CPI inflation Rural, increased by 9.7 percent on year-on-year basis in May 2020 as compared to an increase of 9.8 percent in the previous month and 8.3 percent in May 2019.

    On month-on-month basis, it increased by 0.3 percent in May 2020 as compared to a decrease of 1.1 percent in the previous month and an increase of 0.5 percent in May 2019.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 11.0 percent in May 2020 as compared to an increase of 9.3 percent a month earlier and an increase of 9.9 percent in May 2019.

    On MoM basis, it increased by 2.2 percent in May 2020 as compared to a decrease of 1.8 percent a month earlier and an increase of 0.6 percent in May 2019.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 1.5 percent in May 2020 as compared to an increase of 4.9 percent a month earlier and an increase of 16.5 percent in May 2019.

    WPI inflation on MoM basis decreased by 2.1 percent in May 2020 as compared to a decrease of 2.0 percent a month earlier and an increase of 1.2 percent in corresponding month of last year i.e. May 2019.

  • Rupee weakens by 98 paisas on import payment demand

    Rupee weakens by 98 paisas on import payment demand

    KARACHI: The Pak Rupee weakened by 98 paisas against dollar on Monday owing to higher demand for import and corporate payments, dealers said.

    The rupee closed at Rs164.08 to the dollar from last Friday’s close of Rs163.10 in interbank foreign exchange market.

    Currency experts said that the deterioration in rupee value was due to higher demand for import and corporate payments. They said that rupee was remained under pressure due to settlement of import payments after long holidays.

    Further, they said that after ease in lockdown the demand was increasing and importers started purchasing dollars for future buying.

    The currency experts said that fall in exports and remittances also put pressure on the local currency.

    Overseas Pakistani workers sent home $1.790 billion in April, compared with $1.894 billion in previous month.

    Pakistan received $18.781 billion in remittances in July-April FY2020, compared with $17.801 billion in the same period last year.

    However, the experts said that the local currency recovered on the back of improved economic indicators.

  • Bilingual one-page income tax return form advised

    Bilingual one-page income tax return form advised

    KARACHI: Federal Board of Revenue (FBR) has been advised to make one-page simple income tax return form and that should be available in Urdu and English to facilitate taxpayers.

    In its proposals for budget 2020/2021, the Karachi Chamber of Commerce and Industry (KCCI) said that every year changes are made in income tax form and ironically, it becomes more confusing and difficult for the tax-payers to fill.

    It is particularly cumbersome for the Small and Medium Enterprises (SMEs) including individuals and Association of Persons (AOPs).

    The KCCI said that taxpayers have to seek assistance from consultants and pay large amount of fee only to comply with the requirements of tax return.

    Due to the changes every year, tax-payers have to wait for the new form to be issued by the FBR which takes a month or two after the new budget is approved.

    “The complicated form only helps the business of consultants and tax practitioners at the expense of compliant taxpayers,” the KCCI said.

    It is one of the reasons that many individuals prefer to stay out of tax regime and a deterrent to broadening of tax base.

    The Karachi Chamber proposed that separate income tax return forms for companies, AOPs, individuals and salaried class should be created.

    Forms for SMEs and individuals and retailers should be a simple one page form both in English and Urdu.

    Manual completion and filing should be allowed for individuals and SMEs in order to encourage documentation.

    Extreme penalties and charges should be avoided in case of late filing.

    Errors/short payment should be notified to registered person within two months of filing and correction of errors should be allowed to tax-filer for up to 3 months of filing without requirement of commissioner’s approval.

    The chamber said that incorporation of proposal will help in simplification of filing procedures and documentation. Besides it will also help in broadening of tax base and increase in number of filers.

    Further, it will save unnecessary expenses on fees of consultants and tax practitioners. It will eliminate corruption and harassment.

  • All income tax audit selections should bring under one provision

    All income tax audit selections should bring under one provision

    KARACHI: Federal Board of Revenue (FBR) has been urged to eliminate audit selection under various provisions of Income Tax Ordinance, 2001 for the confidence building of taxpayers.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2020/2021 submitted to the FBR, said that presently audit proceedings can be started u/s 177 as well as through balloting u/s 214C and like-wise enquiries can also be made by the Commissioner u/s 122(5A).

    There is a concept of a special audit panel u/s 177(11) as well.

    Sub-Section 7 is ambiguous and provides the Commissioner and his sub ordinates with a tool to harass, extort and victimize any taxpayer at will.

    The Commissioner can reopen the audit of any person or firm at will on unsubstantiated grounds.

    Under sub-Section 4 of Section 177, any person employed by a firm to conduct audit function may be authorized by the Commissioner to exercise powers under sections 175 and section 176.

    The chamber said that the revenue collection through such recovery proceedings is hardly Rs.92 billion whereas the costs due to litigation, involvement of entire tax collection machinery and declining number of tax filers, is far more than the collection.

    Multiple Audits under various provisions have eroded the trust of tax-payers in the FBR. RTOs and LTUs. Audit functions under various provisions have created confusion and complexity in tax regime.

    Such provisions are also prone to misuse and a source of harassment.

    The KCCI proposed that all Audit functions should be brought under one provision of Income Tax Ordinance rather than various over-lapping provisions with clear and well defined parameters.

    Audit Parameters should be transparent and open to taxpayers.

    Further, Sub-Section 7 may be deleted.

    Powers of the Commissioner and sub-ordinate officials should be curtailed to restore the trust of taxpayers and encourage broadening of tax-base.

    Such Audits should be restricted to specific queries or objections and call for relevant document only rather than opening and re-opening a comprehensive audit every time.

    The chamber said that it will bring transparency and clarity to Audit functions and rules governing the same.

    Prevent harassment to tax payers and abuse of powers by Inland Revenue officials. Broaden tax base by restoring confidence in the system.

  • Govt. slashes petroleum prices up to 25 percent

    Govt. slashes petroleum prices up to 25 percent

    ISLAMABAD: The government has reduced up to 25 percent the consumer prices of petroleum products for the month of June 2020.

    (more…)
  • FBR records 31 percent decline in May collection

    FBR records 31 percent decline in May collection

    ISLAMABAD: Federal Board of Revenue (FBR) has recorded 31 percent decline in revenue collection during May 2020 owing to halt in economic activities after lockdown imposition.

    According to provisional figures released by the FBR on Sunday, the tax authorities collected Rs227 billion in May 2020 as compared with Rs330.1 billion collected in the same month of the last fiscal year.

    The massive fall in revenue collection has been attributed to halt in business activities due to lockdown which was imposed to stop spread the coronavirus.

    FBR spokesman in a statement said that despite lockdown in the country the revenue body collected Rs3,518 billion during July – May 2019/2020 as compared with Rs3,266 billion in the corresponding period of the last fiscal year.

    The revenue collection for the current fiscal year has been reduced to Rs3,908 billion from actual target of Rs5,500 billion initially set for the current fiscal year.

    The spokesman said that the FBR so far collected around 90 percent of the assigned target of Rs3,908 billion.

  • Shopkeepers to implement ‘no mask, no service’; NCOC discusses easing lockdown

    Shopkeepers to implement ‘no mask, no service’; NCOC discusses easing lockdown

    ISLAMABAD: Market associations to be engaged for implementation of COVID-19 guidelines and Standard Operating Procedures (SOPs) for prevention the spread of coronavirus.

    This was discussed at a meeting of National Command and Operation Centre (NCOC) held on chaired by Minister for Planning, Development and Special Initiatives Asad Umer.

    Umer said that the shopkeepers should strictly implement “no mask, no service” policy.

    Asad Umer directed the NCOC to concentrate on the plan to ease the lockdown while strictly implementing the Standard Operating Procedure (SOPs).
    The forum suggested taking strict punitive action on violation of SOPs.

    It must be noted that NCOC is working to devise a long and short term strategy on COVID-19 titled “Living with the Pandemic”.

    Asad Umar directed the pursuing of a vigorous mass awareness campaign to highlight the measures taken by the government to contain COVID-19 and underscore its achievements in this regard.

    The campaign should focus on ensuring behaviour change of the people regarding COVID-19 while also underlining that the main aim of the government was to safeguard the people from the pandemic.

    Expressing satisfaction over the availability of ventilators in countrywide hospitals, Asad Umar directed the concerned to provide latest information about the availability of beds and other related facilities for the information of the infected people.

    The forum was told that the Resource Management System (RMS) would be rolled out across country from the 1st of June.

    Under this system, the hospitals would also share the details of local resources available to them, total admitted patients, denial of admissions, no of beds and ventilators available, as well as other facilities being provided to them.

    Dr Zafar Mirza said that his Ministry was planning to mobilise retired doctors of public sector hospitals, young doctors, doctors on house jobs, and final year medical students to cope with the situation.

    Moreover, new doctors and paramedics would be recruited through walk-in interviews. The forum was apprised that the provinces had been asked to ensure community mobilisation and set up call Centres in their respective areas by June 15.

    The forum was told that Sindh and Balochistan governments were not agreeing on imposing smart lockdown. Instead, they preferred the home quarantine policy.

    The meeting was attended by Interior Minister Brig (Retd) Syed Ijaz Ahmed Shah, Minister for National Food Security and Research Fakhar Imam, Minister for Economic Affairs Makhdoom Khusro Bakhtiar, Special Assistant to the Prime Minister on National Security Dr Moeed Yousaf and Special Assistant to the Prime Minister on Health Dr Zafar Mirza.

  • FBR discontinues manual payment of income tax refunds

    FBR discontinues manual payment of income tax refunds

    ISLAMABAD: Federal Board of Revenue (FBR) has discontinued manual issuance of income tax refunds with immediate effect to ensure transparency.

    The release of income tax refunds will be carried out electronically, said an office order of the FBR dated May 29, 2020.

    The FBR is going to disburse income tax refunds directly to bank accounts of claimants. In this regard, the finance ministry released an amount of Rs10 billion for payment of income tax refunds, official sources said on Saturday.

    The finance ministry initially provided the fund of Rs10 billion to the FBR for sanctioning of income tax refunds to taxpayers.

    The FBR decided to liquidate amount of Rs5 million claims out of the fund. Pending income tax refunds already prepared and kept in draft mode in Iris by the relevant officers where the amount of Rs5 million (cumulatively) has to be liquidated at this stage.

    The FBR further explained that cumulatively means the total amount of refund in respect of a taxpayer (for the tax year 2014 to 2019) duly processed and sanctioned under the law.

    The FBR further directed the chief commissioners that bank-wise (with IBAN numbers) taxpayers-wise lists of cases ripe for the sanctioning of income tax refunds up to Rs5 million should be dispatched by May 31, 2020.

    The FBR said that since the entire process of refund issuance under Prime Minister’s COVID-19 Package had to be carried out electronically, by disbursal of refunds through the AGPR, therefore, no manual issuance of income tax refunds is allowed till further orders.