Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR may extend return filing date further to facilitate taxpayers

    FBR may extend return filing date further to facilitate taxpayers

    ISLAMABAD: Federal Board of Revenue (FBR) may further extend the last date for filing income tax returns for tax year 2019 beyond November 30, 2019 as large number of filing is still pending.

    The last date for filing income tax returns is expiring on November 30, 2019.

    The actual last date for filing income tax returns was September 30, 2019. This cutoff date was for return filing including salaried persons, business individuals, Association of Persons (AOPs) and corporate entities falling under special tax year.

    However, the FBR granted first extension from September 30 to October 31, 2019. Further, the next extension was granted up to November 30, 2019.

     

    The income tax return filing for tax year 2019 has been recorded at 1.6 million by November 25, 2019. Whereas the number of income tax returns was increased to record 2.7 million for tax year 2018.

    Therefore, it is estimated that a large number may not file their returns by due date.

    The Pakistan Tax Bar Association (PTBA), the apex tax bar of the country, recently through a letter urged the FBR that the date of filing income tax returns of individuals, salaried individuals, Association of Persons (AOP) for the tax year 2019 should be extended up to December 31, 2019 in order to facilitate the genuine taxpayers in the country, who are regularly contributing in the national exchequer as their moral and legal obligation.

    The tax bar previously through different communications on September 27, 2019 and October 28, 2019 already advised the FBR to extend the date for filing Tax Year 2019 returns up to December 31, 2019.

    The FBR chairman has been informed that the draft return Form 2019 for individuals, salaried individuals and AOPs was uploaded on August 23, 2019 through SRO 951 and final return 2019 was uploaded on IRIS on September 02, 2019 through SRO 979 of 2019 which shows laps of statutory period of two months and all burden shifts on FBR.

    The manual return of income form for tax year 2019 was issued on September 27, 2019 FBR through SRO 1160 of 2019, so the small volume taxpayers could file their returns of income for the year 2019 within the stipulated time.

    Furthermore, as per law and statutory time period for filing of income tax return is 90 days under Section 118 of the Income Tax Ordinance, 2001 read with rule 34 of the Income Tax Rules, 2002.

     

    The PTBA said that the date for filing income tax returns was extended up to August 09, 2019 for tax year 2018. This shows the FBR allowed 11 months for the filing for last year returns and for current year it is allowing only two months, which is injustice with the bar members and taxpayers as well.

    The tax bar also pointed out towards the political uncertainty due to sit-in at Islamabad, which was remained continue from start of November 2019 to mid of this month.

  • Rupee gains nine paisas in early day trading

    Rupee gains nine paisas in early day trading

    KARACHI: The Pak Ruee gained nine paisas against dollar in early trade on Friday owing to sufficient inflows in the market.

    The exchange rate was witnessed at Rs155.24 to the dollar in early trade. The last day’s closed was recorded at Rs155.33 to the dollar in interbank foreign exchange market.

    Currency dealers said that the resolution of political strife and court dispute about extension of army chief tenure improved the sentiments in the market.

    Besides, exports receipts were also flowing into the country due to better earnings in the wake of Christmas.

    The dealers said that improved economic conditions and better earning of exports may further help the rupee to gain value against the greenback.

  • Cash gifts received without banking channel chargeable to tax

    Cash gifts received without banking channel chargeable to tax

    ISLAMABAD: Any cash gift received by a person other than banking channel will be treated as chargeable to tax, sources in Federal Board of Revenue (FBR) said on Thursday.

    The sources said that in the past people were taking advantage of incentives granted on gifts and concealed their income to evade taxes.

    However, the change in the law through last budget those people will no more dodge the tax authorities of claiming gift from their relatives and evade taxes.

    The FBR had conducted an analysis of income tax returns filed in previous years, which showed that huge amount of non recurring receipts from un-related persons are transferred in the garb of gifts to avoid incidence of taxation.

    The sources said that in order to discourage this practice of undisclosed receipts, Section 39 of Income Tax Ordinance, 2001 had been amended through Finance Act, 2019.

    The amendment enabled the tax authorities to include any amount or fair market value of any property received by a person without consideration or received as a gift in income under the head ‘income from other sources.’

    However, gift received from grandparents, parents, spouse, brother, sister, son or a daughter shall not be included in such income.

    The new income provision is subject to sub-section 3 of Section 39 which states that an amount received by a person otherwise than by a cross cheque drawn on a bank or through a banking channel from a person holding a National Tax Number (NTN) shall be treated as income chargeable to tax under the head ‘income from other sources’.

    This means that the gift received by a person is chargeable to tax if gift is not received from grandparents, parents, spouse, brother, sister, son or a daughter of the recipient.

    However, even if cash gift is received from the relations mentioned above but the same has not be received through cross cheque or banking channel, as the case may be, the amount of gift will still be added in income chargeable to tax under the head, income from other sources.

  • ECC approves increase in wheat support price

    ECC approves increase in wheat support price

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved the minimum support price of wheat to Rs1365 per 40 kilograms from Rs1350.

    The ECC, which was chaired by Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance and Revenue, on Thursday approved the minimum support price of wheat from the previously announced Rs 1350 per 40 kg to Rs 1365 per 40 kg in view of representations from various farmers and growers’ associations as well as the Federal Cabinet and the National Assembly Special Committee on Agricultural Products which had proposed a reconsideration of the minimum support price in order to compensate the farmers in areas where the cost of wheat production had increased to Rs 1349.57 per 40 kg.

    Earlier, the Ministry of National Food Security & Research briefed the ECC on the feedback received from various farmers’ associations as well as different government forums and requested for fixing the minimum support price of wheat at Rs 1400 per 40 kg.

    The ECC deliberated on the proposal at length and in view of the discussion and input regarding the impact of any further increase in wheat price on food inflation and financial impact on the commodity stock operations, decided to raise the minimum support price of wheat to Rs 1365 per 40 kg.

    The ECC also viewed a presentation from the Ministry of Finance on the government commodity operations which had over the years resulted in Rs 757 billion as total debt and liabilities and recommendations for reducing the debt.

    The ECC also considered a proposal from the Ministry of Energy regarding tariff rationalization for power sector in the first quarter of financial year 2019-20 and a approved proposal for notifying the NEPRA approved quarterly adjustment of 15 paisa per unit after incorporating a additional charge of 11 paisa per unit for maintaining uniform tariff on all categories of consumers except lifeline and domestic consumers.

    The increase coming into effect on December 01, 2019 for the next twelve-monthly billing cycle would not be applicable to nearly 20 million using up to 300 units per month, out of the total 30 million consumers while 600,000 of the remaining one million consumers would only pay 7 paisa per unit as a result of this increase.

    The ECC also constituted a committee headed by Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh and comprising Minister of National Food Security and Research Makhdoom Khusro Bakhtiar, Prime Minister’s Advisor on Commerce and Investment, Abdul Razak Dawood and Special Assistant to Prime Minister on Petroleum Nadeem Babar to examine the current framework of determining power tariff and make it more simple in line with the practice in mature markets.

    The ECC also considered a set of proposals from the Ministry of Energy (Power Division) for risk mitigation post privatisation of National Power Parks Management Company, especially the impact on fuel basket price due to non or reduced off take of 66 per cent generation under the PPA till year 2024 and cost of diversion of Regasified Liquefied Natural Gas (RLNG) to other sectors with workable options to mitigate the risk.

    The ECC discussed the proposals in details and approved them with a proviso that any other option that could be considered as part of the mitigation plan by the Power Division could also be taken into account and approved, if found suitable, by the ECC. To a proposal by the Ministry of Industries and Production, the ECC constituted an inter-ministerial committee under the chairmanship of Minister Planning, Development and Reforms and comprising Adviser to Prime Minister on Industries and Production, Special Assistant to Prime Minister on Petroleum, Secretary Finance, Secretary Industries and Production and Chairman FBR for preparation of a policy framework for promotion of steel and iron in the country through foreign direct investment.

    The ECC also considered a proposal by the Ministry of Communications that all cash development loans and foreign loans, whether direct or relent, including interest accumulated thereon, received up to June 30, 2019 by the National Highway Authority be converted into government grant or the Government of Pakistan may either “write-off” the said loans while for future, all PSDP allocations including relent/direct loans, both rupee and foreign exchange component i.e. for non-commercially viable projects and for strategic/defence roads to NHA may also be provided as government grant.

    The proposal also sought the CDL may be advanced only for commercially feasible projects on which Finance Division and NHA mutually agree regarding the terms and conditions of the loan and its repayment or these viable projects may be undertaken by NHA in PPP/BOT mode of financing.

    The ECC discussed the proposals and in view of input from the members constituted a committee comprising Minister for Planning, Development and Reforms, Secretary Finance, Secretary Communications, Secretary Economic Affairs Division and Deputy Chairman Planning Division to examine the proposals and submit their recommendations to the ECC.

    The ECC also took up a proposal from the Ministry of Industries and Production for a technical supplementary grant of Rs 6 billion to the Utility Stores Corporation (USC) for subsidy and procurement of essential commodities, including flour, ghee/oil, rice, sugar and pulses, to be sold at a fair price to the poor segment of the society.

    The ECC discussed the issue in detail and in view of input from the members, asked the Utility Stores Corporation to prepare within the next few days a practical and comprehensive mechanism involving use of information technology to ensure the disbursement of specific food items to the poorest of the poor.

    The ECC also constituted a committee comprising Adviser to Prime Minister on Industries and Production, Governor State Bank of Pakistan, Benazir Income Support Programme Chairperson and representatives from NADRA and PPRA to advise and assist the USC to firm up their proposals and present them to ECC.

  • FBR decides to publish customs valuation rulings

    FBR decides to publish customs valuation rulings

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to publish all prevailing valuation rulings to its official website in order to make customs clearance transparent and ease of doing business.

    The FBR in a statement on Thursday said that the chairman Syed Shabbar Zaidi, had issued special instructions to publish all Customs Valuation Rulings on the Website of FBR so that Rulings are easily accessible to the general public.

    The Instructions have been issued to further promote transparency and ease of doing business. The Chairman has requested the business community to assist FBR in identifying cases of under-valuation so that remedial action should be taken.

  • Foreign exchange reserves increase by $115 million

    Foreign exchange reserves increase by $115 million

    KARACHI: The liquid foreign exchange of the country increased by $115 million by the week ended November 22, 2019, the State Bank of Pakistan (SBP) said on Thursday.

    The total foreign exchange reserves increased by $115 million to $15.577 billion by week ended November 22, 2019 as compared with $15.462 billion a week ago.

    The foreign exchange reserves held by the central bank increased by $240 million to $8.682 billion by week ended under review as compared with $8.442 billion a week ago.

    The foreign exchange reserves held by commercial banks fell by $125 million to $6.895 billion by week ended November 22, 2019 as compared with $7.020 billion a week ago.

  • Electric vehicles to reduce 60pc fuel cost: Amin Aslam

    Electric vehicles to reduce 60pc fuel cost: Amin Aslam

    KARACHI: The use of electric vehicles will reduce fuel cost by 60 percent and it will also resolve environmental issues caused by pollution, Malik Amin Aslam, Advisor to Prime Minister for Climate Change, said on Thursday.

    Addressing at a press conference, Amin Aslam said that the government had approved first ever Electric Vehicle Policy and the industry would start working soon.

    “The owners of motor cycles, three-wheelers and buses can reduce their monthly fuel cost by 60 percent with uses of electric vehicle technology,” he said.

    He said that on Saturday he would meet the Prime Minister and after that meeting the electric motor vehicle industry would start operation.

    The modern technology will help the country to save around $2 billion foreign exchange, which are being spent on oil import.

    He said that the country had facing environmental issues. He said that such projects would be successful for clean environment such as in Lahore city.

    He said that the electricity generation in the country had improved.

    The country is facing large import bill especially for oil import bill. He said in case 30 percent vehicles converted to electric mechanism than the country will able to save around $2 billion.

  • Stock market gains 584 points on improved sentiments

    Stock market gains 584 points on improved sentiments

    KARACHI: The stock exchange gained 584 points on Thursday on buying activities and improved sentiments.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,706 points as against 38,123 points showing an increase of 584 points.

    Analysts at Arif Habib Limited said that expectation of resolution of the controversy regarding COAS extension in Service helped Index recover, as Investors (largely Individuals and Corporates) have been buying the dips since last week.

    Market opened on a positive note and reached +724 points. Activity was observed across the board with major activity being observed in Cement and Banks.

    Profit booking was also seen during the day which brought the index down to +584 points and closed the session at that.

    Auto sector has generally been rallying on the back of upcoming Auto Industrial Development Policy, where shares were seen hitting upper circuit in today’s session.

    Cement sector led the volumes with 48.8 million shares, followed by Banks (40 million) and Engineering (36.5 million).

    Among scrips, UNITY again topped the charts with 20.4 million shares, followed by PAEL (19.7 million) and TRG (15.8 million).

    Sectors contributing to the performance include Banks (+91 points), Power (+75 points), Cement (+59 points), E&P (+48 points) and O&GMCs (+46 points).

    Volumes staged a strong comeback with 348.2 million shares against 228.4 million the other day (+52 percent DoD).

    Average traded value also increased by 52 percent to reach US$ 78.1 million as against US$ 51.5 million.

    Stocks that contributed significantly to the volumes include UNITY, PAEL, TRG, BIPL and FFL, which formed 24 percent of total volumes.

    Stocks that contributed positively include HUBC (+68 points), PSO (+31 points), MCB (+30 points), LUCK (+29 points) and NBP (+23 points). Stocks that contributed negatively include SHFA (-7 points), HBL (-5 points), BAFL (-4 points), PMPK (-3 points), and PKGS (-3 points).

  • Rupee ends unchanged in range bound activities

    Rupee ends unchanged in range bound activities

    KARACHI: The Pak Rupee ended unchanged against dollar on Thursday owing to range bound trading activities.

    The rupee ended Rs155.33 to the dollar, the same previous day’s level in interbank foreign exchange market.

    The currency experts said that the lower demand for dollar from importers and corporate sector helped the rupee to maintain level. Besides, the market also witnessed no significant inflows of export receipts and workers remittances.

    The foreign currency market was initiated in the range of Rs155.30 and Rs155.35. The market recorded day high of Rs155.34 and low of Rs155.30 and closed at Rs155.33.

    The exchange rate in open market also witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs155.40/Rs155.70, the same previous day’s closing, in cash ready market.

  • ECC approves Rs30bn for redemption of sales tax refund bonds

    ECC approves Rs30bn for redemption of sales tax refund bonds

    ISLAMABAD: The government has approved Rs30 billion for redemption of sales tax refund bonds issued by the Federal Board of Revenue (FBR).

    The Economic Coordination Committee (ECC) of the Senate in a meeting yesterday took up a proposal by FBR and approved a technical supplementary grant to the tune of Rs 30 billion for the redemption of bonds issued by the “FBR Refund Settlement Company Limited” to the tune of Rs 30 billion, and payment of sales tax refunds by FBR in the form of cheques in accordance with the prescribed rules.

    The ECC also approved a proposal by the Commerce Division for declaration of the erstwhile zero-rated sectors, namely Textiles (including jute), carpets, leather, sports and surgical goods as “Export Oriented Sectors, which includes Textiles, Carpets, Leather, Sports and Surgical Goods”.

    On another proposal by the Ministry of Information Technology & Telecommunication for exemption of 8 percent minimum Income Tax for National Telecommunication Corporation, the ECC constituted a body comprising Minister for Economic Affairs Division Muhammad Hammad Azhar, Minister for Information Technology & Telecommunication Khalid Maqbool Siddiqui, Chairman Board of Investment and a representative from FBR to review the proposal and present suitable recommendations to ECC.