Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Applicable withholding sales tax rates on various supplies

    Applicable withholding sales tax rates on various supplies

    KARACHI: Federal Board of Revenue (FBR) has notified withholding sales tax rates to be deducted / collected on various supplies by withholding agents.

    The FBR recently updated Sales Tax Act, 1990 and updated sales tax rates to be collected on various supplies under sub-section 7 of section 3 of the Act.

    The tax shall be withheld by the buyer at the rate as specified in the Eleventh Schedule, by any person or class of persons as withholding agent for the purpose of depositing the same, in such manner and subject to such conditions or restrictions as the Board may prescribe in this behalf through a notification in the official Gazette.

    Following rate of withholding sales tax shall be applicable:

    01. 1/5th of Sales Tax as shown on invoice to be collected from registered persons by (a) Federal and provincial government departments; autonomous bodies; and public sector organizations; (b) Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001)

    02. 1/10th of Sales Tax as shown on invoice to be collected from person registered as a wholesaler, dealer or distributor by (a) Federal and provincial government departments; autonomous bodies; and public sector organizations; (b) Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001)

    03. Whole of the tax involved or as applicable to supplies on the basis of gross value of supplies from unregistered persons by Federal and provincial government departments; autonomous bodies; and public sector organizations

    04. 5 percent of gross value of supplies from unregistered persons by companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001)

    05. Whole of sales tax applicable from person providing advertisement services by registered persons as recipient of advertisement services

    06. Whole of sales tax applicable from unregistered persons by registered persons purchasing cane molasses.

    The rates for withholding or deduction by the withholding agents not applicable to following goods and supplies:

    (i) Electrical energy;

    (ii) Natural Gas;

    (iii) Petroleum Products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealers of motor spirit and high speed diesel;

    (iv) Vegetable ghee and cooking oil;

    (v) Telecommunication services;

    (vi) Goods specified in the Third Schedule to the Sales Tax Act, 1990;

    (vii) Supplies made by importers who paid value addition tax on such goods at the time of import; and

    (viii) Supplies made by an Active Taxpayer as defined in the Sales Tax Act, 1990 to another registered persons with exception of advertisement services.

  • Prime minister forms committee to resolve tax challenges for construction industry

    Prime minister forms committee to resolve tax challenges for construction industry

    ISLAMABAD: Prime Minister Imran Khan on Monday constituted a committee for formulation of proposals to resolve challenges of federal and provincial taxes faced by construction industry.

    The committee will be headed by Naya Pakistan Housing Authority Chairman Lt Gen (R) Anwar Ali Haider.

    The prime minister was chairing a high level meeting regarding the revival and promotion of construction sector. The meeting was briefed in detail about the challenges faced by the sector.

    According to state news media the prime minister highlighted the significance of construction sector in boosting economic activities and said the present government had given a lot of importance to the sector, which would help realize the project of five million housing units.

    The meeting was attended by Punjab Chief Minister Usman Buzdar, Khyber Pakhtunkhwa Chief Minister Mehmood Khan, Punjab Finance Minister Makhdoom Hasham Jawan Bakht, Punjab Housing Minister Mian Mehmood-ur-Rasheed, Balochistan Finance Minister Zahoor Ahmad Bulaidi, FBR Chairman Syed Shabbar Zaidi, Board of Investment Chairman Syed Zubair Haider Gilani, Planning Commission Deputy Chairman Jahanzeb Khan, Naya Pakistan Housing Authority Chairman Lt Gen (R) Anwar Ali Haider and senior federal and provincial governments’ officers.

    The prime minister said the promotion of construction sector was the government’s foremost priority, adding since around 40 industries were allied with it, the promotion of construction sector besides developing those industries would also create job opportunities for youth.

    The meeting discussed in detail various proposals regarding the provision of bank loans, uniform implementation of taxes and promotion of public-private partnerships for the construction sector.

    The prime minister was briefed about the problems faced by the builders, contractors, developers and real estate businesses, especially, the ratio of federal and provincial taxes, difficulties in the provision of capital from banks, problems regarding registration, other official procedures and corruption.

    Other members of the committee included the Federal Board of Revenue (FBR) chairman, Governor State Bank, Punjab finance minister, provincial chief secretaries and other relevant officers.

    The prime minister directed the committee to submit a strategy along with recommendations to address the problems about taxes, provision of loans from banks and other difficulties faced by the construction sector within the next 24 hours.

  • Return filing hits new peak of 2.676 million on ATL conditions

    Return filing hits new peak of 2.676 million on ATL conditions

    ISLAMABAD: The condition of 100 percent higher withholding tax rates for persons not appearing on Active Taxpayers List (ATL) increased the income tax return filing for tax year 2018 to a new peak of 2.676 million by November 10, 2019.

    According to weekly ATL for tax year 2018 issued by Federal Board of Revenue (FBR) on Monday the number of return filers increased to 2.676 million till November 10, 2019 as compared with 2.667 million till returns filed as on November 03, 2019.

    So far the return filing grew by 45.43 percent in tax year 2018 when compared with 1.84 million returns received by the FBR for tax year 2017.

    The appearance of taxpayers on ATL guarantees the lower rate of withholding tax to be collected on various transactions.

    Through Finance Act, 2019 Tenth Schedule was introduced to Income Tax Ordinance, 2001 under which persons not appeared on the ATL, even filed the return, would liable to pay 100 percent more withholding tax amount.

    The FBR issues ATL on every year on March 01 on the basis of return filed by taxpayers by due date for relevant tax year.

    The FBR issued latest ATL on March 01, 2019 on the basis of returns filed for tax year 2018. Since the date for filing returns extended up to August 09, 2019 for tax year 2018, the names of those return filers were added to the updated ATL.

    By August 09, 2019 the number of return filers was increased to 2.5 million. However, additional 0.167 million returns were been filed after payment of late filing surcharge.

    The FBR in an explanatory note said that restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018.

    However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities, the FBR said.

    Furthermore, it added, a surcharge for placement on ATL after due date of filing of Tax Return will be charged at Rs1,000 from individuals, Rs10,000 from Association of Persons (AOPs) and Rs20,000 from companies.

    FBR sources said that people were filing their income tax returns for tax year 2018 along with late surcharge, despite the due date for tax year 2019 had been prescribed, for avoiding 100 percent withholding tax rates.

    They said that the current ATL would remain applicable till February 29, 2020 as new ATL on the basis of return filed for tax year 2019 would be issued on March 01, 2020.

  • Stock market surges by 825 points on policy rate cut hope

    Stock market surges by 825 points on policy rate cut hope

    KARACHI: The stock market surged by 825 points on Monday owing to expected policy rate cut, MSCI review and reports of deal of the government with PML (N).

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,803 points as against 35,978 points showing an increase of +825 points.

    Analysts at Arif Habib Limited said that the market surged again with a mammoth 840 points and closed the session near day’s high that too at a time when the index has already increased by around 7000 points from low.

    “Deal with PML (N) being on the cards, besides possible cut in SBP policy rate and MSCI review proving to be a non-event gave confidence to investors and rather than adjusting downwards, as was anticipated (possibly due to overbought levels) the market went up.”

    Market volumes increased as well over the day, registering trading volumes of 283 million shares, contributed mostly by Banks (50.4 million) followed by Cement (32.5 million) and Technology (30.7 million).

    Among scrips, BOP registered trading volume of 35.9 million shares, followed by WTL (14.5 million) and MLCF (11.7 million).

    Sectors contributing to the performance include Banks (+221 points), E&P (+142 points), Power (+108 points), Cement (+82 points) and O&GMCs (+71 points).

    Volumes increased from 210.6mn shares to 282.9mn shares (+34 percent DoD). Average traded value also increased from US$ 42.1mn to US$ 58.5mn (+39 percent DoD).

    Stocks that contributed significantly to the volumes include BOP, WTL, MLCF, PIAA and LOTCHEM, which formed 29 percent of total volumes.

    Stocks that contributed positively include HUBC (+81 points), UBL (+56 points), OGDC (+52 points), HBL (+48 points) and PPL (+42 points). Stocks that contributed negatively include PAKT (-28 points), PMPK (-8 points), MUREB (-4 points), DCR (-1 points), and SHFA (-1 points).

  • Karachi Chamber urges PM to honor genuine taxpayers

    Karachi Chamber urges PM to honor genuine taxpayers

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday urged Prime Minister Imran Khan to honor genuine taxpayers instead saying all the countrymen as tax thieves.

    Chairman Businessmen Group & Former President Karachi Chamber of Commerce & Industry (KCCI) Siraj Kassam Teli and President KCCI Agha Shahab Ahmed Khan, while disagreeing to PM Imran Khan’s remarks wherein he accuses everyone for not paying taxes across the board, appealed to make public the city-wise tax collection so that everyone could know which city is paying what taxes and which isn’t and running away from the national obligation.

    In a statement issued, Chairman BMG and President KCCI said that although there are gaps in the taxation system but that cannot be made the reason to call all the countrymen tax thieves hence, the Prime Minister Imran Khan may please amend his statement.

    They said: “The Prime Minister talks a lot about Change and Justice but it is a matter of grave concern and a sheer injustice to the taxpayers when our Prime Minister claims that nobody wants to pay taxes. The loyal taxpayers contribute billions of rupees each year which are being utilized to run the government yet they (the taxpayers) are being discouraged as they stand at the same array where the tax thieves and evaders were standing.”

    Referring to a press conference by Advisor Finance Hafeez Shaikh and Chairman FBR Shabbar Zaidi held to respond to Small Traders’ reservations along with a recent data of the FBR, they said that as per FBR statistics, the small traders of Karachi paid tax of Rs30 billion while the traders from Lahore paid a mere amount of just Rs567.7 million and the situation in other cities was much worse.

    Hence, Chairman BMG and President KCCI urged the Prime Minister Imran Khan, Advisor Finance Hafeez Shaikh, Minister of State for Revenue Hammad Azhar and Chairman FBR Shabbar Zaidi to publicize the city-wise data of all other taxes including the Income Tax, Sales Tax, Custom Duty and Federal Excise Duty in detail so that the ground realities could be revealed.

    “We believe that the actual contribution of Karachi, which is the economic hub of the country contributing 70 percent revenue to the national exchequer, has to be publicized without any excuse of being the port city with a precise breakup of tax collection from the ports and dry ports along with details of the imported items belonging to which city and the consignee, besides carrying detailed fragmented tax collection from the head offices of corporate entities and their branches located in all parts of the country which would surely present the actual city-wise contribution”, they suggested.

    Siraj Teli and Agha Shahab further said, “We agree that many individuals and corporate entities from different areas of the country may not be paying their taxes to the level they should but that doesn’t mean that nobody was paying taxes. It is highly unfair to give such statement as it creates a false impression. Realistically, there are millions of individuals and corporate entities who are paying all their taxes. The FBR and Ministry of Finance should be told to get those individuals first who are paying zero tax instead of furthering squeezing the existing tax payers.”

    They hoped that the Prime Minister Imran Khan would soon issues strict directives to the Ministry of Finance and the FBR to compile city-wise data of tax collection and the same will also be publicized at the earliest.

  • Rupee gains three paisas amid higher import payment demand

    Rupee gains three paisas amid higher import payment demand

    KARACHI: The Pak Rupee gained three paisas against dollar on Monday despite higher demand for import and corporate payments.

    The rupee ended Rs155.44 to the dollar from last Friday’s closing of Rs155.47 in interbank foreign exchange market.

    Currency dealers said the market witnessed higher dollar demand earlier in the day because the market opened after two weekly holidays. They said that later in the day inflows from remittances and export receipts supported the local unit.

    The foreign currency market was opened in the range between Rs155.43 and Rs155.45. The market recorded day high of Rs155.60 and low of Rs155.34 and closed at Rs155.44.

    The exchange rate in open market however witnessed stable rupee value.

    The buying and selling of dollar was recorded at Rs155.20/Rs155.50, the same closing level on last Friday, in cash ready market.

  • Tax rules for computation of profits, gains of insurance business

    Tax rules for computation of profits, gains of insurance business

    KARACHI: Federal Board of Revenue (FBR) has issued updated rules for the computation of profits and gains of the insurance business under Income Tax Ordinance, 2001.

    (more…)
  • FBR receives information of car buyers from withholding agents

    FBR receives information of car buyers from withholding agents

    ISLAMABAD: Federal Board of Revenue (FBR) has received information of persons who purchased motor vehicles during tax year 2019.

    The tax authorities will cross check the sale or purchase of motor vehicles through income tax returns for tax year 2019, which can be filed by November 30, 2019.

    The FBR sources said that the tax authorities had received information of persons who purchased motor vehicles 1,000 CC and above.

    A person is required to file income tax returns if he purchases a motor car in a tax year irrespective of his taxable income falls below or above the threshold.

    The sources told PkRevenue.com that the FBR received the information car manufacturers, dealers of motor vehicle, registration authorities, bank and leasing companies.

    They said that these withholding agents are required to furnish withholding statements, which must contain information of sales or lease of motor vehicles.

    The withholding agents have provided details of persons included: name, NTN/CNIC, registration number of the motor vehicle, motor vehicle make/model/engine capacity/year of manufacture, date of first registration of vehicle in Pakistan, registered capacity/laden weight of the vehicle, ex-factory price of motor vehicle.

  • EOBI pension to increase Rs15,000 per month

    EOBI pension to increase Rs15,000 per month

    KARACHI: The government is aiming to increase the pension amount to Rs15,000 per month from existing Rs6,500 in order to provide relief to elder pensioners and their survivors, a statement said on Sunday.

    Addressing at the first ever Annual Pension Day organized by Employees Old-Age Benefits Institution (EOBI) has organized, Syed Zulfiqar Abbas Bukhari, Special Assistant to Prime Minister for Ministry of Overseas Pakistanis and Human Resource Development, as the chief guest of the ceremony said that currently, the minimum EOBI Pension is Rs6,500 per month but “I am determined to increase the amount to Rs. 15,000 pm, during the term of our government so that the elder pensioners and their survivors would get a little breather.”

    Bukhari said that in September 2018, he had announced 23 percent increase in Pension due to which the Pension was increased to Rs 6,500.

    “However, still it is a nominal amount and needs to be increased. We will make the EOBI a viable and profitable Institution and protect the rights of pensioners,” he said.

    Bukhari further said that more than Rs20 billion have been collected as EOBI Contribution from registered Employers across the country and disbursed 33 billion among the Pensioners.

    “It is not possible to deny the importance of Social Protection for the elderly, disabled employees and widows of the mother land,” he added.

    Earlier, Secretary OP&HRD Engr. Aamir Hassan has welcomed the Chief Guest and briefed the objective of celebration of 1st Annual Pension Day by EOBI.

    On this occasion, Chairman EOBI, Azhar Hameed also expressed his views and highlighted the EOBI services and performance towards registered Employers, Insured persons and Pensioners.

    He said that we are transforming EOBI into a state-of-the-art Institution. We have already started some important projects to achieve our goals.

    One of them is EOBI Transformation Initiative (ETI). Our vision for the future is on being the “Best Technology Driven Service-Oriented Institution” in the country to enable Pension disbursement on timely, prompt and Service basis with the utmost convenience for the contributors. We have also focused on social media and created our twitter handle @EOBIPakistan.

    EOBI Board of Trustees member from KPK Dr. Muhammad Yousuf Sarwar (Employer’s representative) & Muhammad Iqbal (Employees’ representative) also addressed the ceremony.

    Meanwhile, EOBI has selected 132 top and prominent Employers/Companies throughout Pakistan sector-wise i.e. Textile, Sugar, Cement, Coal Mining, IT, Security Companies, Education, Banking, Micro Finance Banking, Insurance, Pharmaceutical, Hospitals, Automobile, Engineering, Human Resource, Beverages, Hotel Industry, Food, Courier Services, Telecommunication, Tobacco, Construction, Media and Power Sector on the basis of highest paid EOBI Contribution on current rate for their employees.

    The chief guest awarded Gold Medals, shields and Appreciation certificates among the following top and prominent Employers/Companies of the country, which included:

    1. PTCL, Islamabad (Total contribution paid Rs. 1,936,432,580, Total pensioners 1,303 and Total pensioner disbursed Rs. 216,822,225)

    2. K-Electric, Karachi (Total contribution paid Rs. 1,343,087,088, Total pensioners 9,546 and Total pensioner disbursed Rs. 3,057,430,302)

    3. HRSG Outsourcing Pvt. Ltd., Karachi (Total contribution paid Rs. 1,282,679,010, Total pensioners 247 and Total pensioner disbursed Rs. 50,942,812)

    4. Oil & Gas Development Company Ltd., Islamabad (Total contribution paid Rs. 1,020,352,522, Total pensioners 4,147 and Total pensioner disbursed Rs. 1,096,759,647)

    5. Sui Northern Gas Pipeline Ltd., Lahore (Total contribution paid Rs. 874,902,306, Total pensioners 3,698 and Total pensioner disbursed Rs. 1,190,798,741)

    6. The Aga Khan Hospital Medical College Foundation, Karachi (Total contribution paid Rs. 851,357,226, Total pensioners 813 and Total pensioner disbursed Rs. 223,709,796)

    7. Utility Stores Corp Ltd., Islamabad (Total contribution paid Rs. 742,159,088, Total pensioners 1,048 and Total pensioner disbursed Rs. 293,062,537)

    8. The Citizen Foundation, Karachi (Total contribution paid Rs. 726,093,214, Total pensioners 313 and Total pensioner disbursed Rs. 58,324,928)

    9. Interloop Ltd., Faisalabad (Total contribution paid Rs. 698,254,092, Total pensioners 213 and Total pensioner disbursed Rs. 51,143,537)

    10. Educational Services Pvt. Ltd. Lahore¬ (Total contribution paid Rs. 662,192,355, Total pensioners 916 and Total pensioner disbursed Rs. 295,556,050)

    The following prominent Employers/ Companies were also honored with Shields and Appreciation certificates for their valuable EOBI Contribution towards their employee’s welfare.

    • Islamabad Hotel,
    • Abbott Laboratories Pakistan Limited,
    • Adamjee Insurance Company Limited,
    • The Aga Khan Hospital Medical College Foundation,
    • Airport Hotel (The Inn),
    • Al-Abbas Sugar Mills Limited,
    • Al-Karam Textile Mills Pvt. Ltd.,
    • ANC Foods, Ashraf, Sugar Mills,
    • Askari Cement Ltd.,
    • Askari Guards (Pvt.) Ltd.,
    • Attock Refinery Limited,
    • B.L. Harbert International Pvt. Ltd.,
    • Bahria Town Pvt. Ltd.,
    • Bata Pakistan Ltd.,
    • Bosch Pharmaceutical Pvt. Ltd.,
    • Byco Petroleum Pakistan Limited,
    • Chenab Management Liaison,
    • The Citizen Foundation,
    • The City Schools Pvt. Ltd.,
    • Coca Cola Beverages Pakistan Ltd.,
    • Credit Commerce Consultants Pvt. Ltd.,
    • D.G. Khan Cement Co. Ltd.,
    • Daily Business Recorder,
    • Daily Jang Rawalpindi,
    • Design Engg. Services Construction Ltd.,
    • Dr. Ziauddin Hospital.,
    • E F U General Insurance Ltd.,
    • Educational Excellence Ltd.,
    • Educational Services (Pvt.) Ltd.,
    • Educational Services (Pvt.) Ltd. (Regional Office),
    • EFU Life Assurance Ltd.,
    • ENI Pakistan Limited,
    • Express Publications Pvt. Ltd.,
    • Fauji Cement Company Limited,
    • Fauji Security Services,
    • Finca Microfinance Bank Ltd.,
    • Fouji Foundation Hospital,
    • Gul Ahmed Textile Mills Ltd.,
    • Hafiz Tannery, Hamza Sugar Mills Ltd.,
    • Hascol Petrolum Limited,
    • Heavy Mechanical Complex Limited,
    • Hillcrest Solutions Pvt. Ltd.,
    • Hinopak Motors Ltd.,
    • HRSG Outsourcing Private Ltd.,
    • Hub Pak Salt Refinery,
    • i2c Pakistan,
    • Independent Media Corporation (Pvt.) Ltd. (Geo),
    • Information Technology Services, Interloop Limited,
    • Islamabad Marriott Hotel,
    • Izhar Construction Ltd.,
    • Jaag Broadcasting Systems (Pvt.) Ltd.,
    • JDW Sugar Mills Limited,
    • Jubilee Life Insurance Company Limited,
    • K- Electric,
    • Karachi Shipyard & Engineering Works Ltd.,
    • Katha Collieries Pak. Ltd.,
    • Khyber-Pakhtunkhwa Oil & Gas Company,
    • Khyber Tobacco Company Limited,
    • Lahore Grammar School,
    • Leather Field (Pvt.) Limited,
    • Leopard Courier Service,
    • Lucky Cement Limited,
    • M A Food Industries Pvt. Ltd.,
    • M Fazal Haq & Co. Ltd.,
    • H. Sadar Ali Akhtar Ali Pvt., Ltd.,
    • Super Coal Mines,
    • Maple Leaf Cement Factory Ltd.,
    • Masood Textile Mills Ltd.,
    • MCC Resources Development Co (Pvt.) Ltd.,
    • Meezan Bank Limited,
    • Memon Motor Private Limited,
    • Mezan Beverages Pvt.,
    • Limited, Muller &Phipps Pakistan Ltd.,
    • Mushtaq Ali Khan Contractor,
    • Muslim Contractor Company (Pvt.) Ltd.,
    • National Communication Services,
    • National Engineering Services Pvt. Ltd.,
    • National Insurance Corporation Ltd.,
    • National Radio Telecommunication Corp.,
    • National Refinery Ltd.,
    • Nextbridge Private Ltd.,
    • Nishat Mills Ltd.,
    • NRSP Microfinance Bank Limited,
    • Oil & Gas Development Company Ltd.,
    • Orient Petroleum Pty Limited,
    • Pak Arab Refinery Ltd.,
    • Pak Elektron Ltd.,
    • Pak Suzuki Motor Company Limited,
    • Pakistan Herald Publications Ltd.,
    • Pakistan Mineral Development Corp,
    • Pakistan Petroleum Limited,
    • Pakistan Refinery Ltd.,
    • Pakistan State Oil Company Limited,
    • Pakistan Telecommunication Co Ltd.,
    • Pakistan Television Corporation Limited,
    • Pakistan Tobacco Company Limited Karachi,
    • Pearl Continental Hotel,
    • Philip Morris (Pakistan) Ltd.,
    • Phoenix Armour Pvt.,
    • Limited, Phoenix Security Service Pvt. Ltd.,
    • People’s Primary Healthcare Initiative (PPHI Sindh),
    • Professional Employers Private Limited,
    • Punjab Beverages Co. (Pvt.,) Ltd.,
    • Quality Contracto,
    • Ravi Auto Sundar Pvt. Ltd.,
    • S S Foot Marks Pvt.,
    • Limited, Sami Pharmaceuticals Ltd.,
    • Searle (Pakistan) Limited,
    • Serena Hotel,
    • Shaukat Khanum Memorial Cancer Hospital,
    • Shell Pakistan Ltd.,
    • Skills Hub Private Limited,
    • Souvenir Tobacco Company Limited,
    • Style Textile (Pvt.) Ltd.,
    • Sui Northern Gas Pipelines Ltd.,
    • Systems Limited,
    • TCS Courier Co.,
    • Tameer Micro Finance Bank Limited,
    • Tandlianwala Sugar Mills Ltd.,
    • Tech Access Pakistan Pvt. Ltd.,
    • The Aga Khan Shia Ismailia Education Society,
    • The Indus Hospital,
    • The News International Lahore,
    • Total Parco Marketing Limited,
    • Microfinance Bank Limited,
    • United Energy Pakistan Limited,
    • United Refrigeration Industries Ltd.,
    • Utility Stores Corp Ltd.,
    • ZIMS Security Pvt. Ltd.

    The Chief Guest Zulfiqar Abbas Bukhari also awarded EOBI Pension Books & souvenirs to the following EOBI Pensioners.

    • Ch. Ameer Khan (PTCL),
    • Tanveer Kaukab (Islamabad Serena Hotel),
    • Saleem Raza Shah (Hotel Holiday Inn),
    • Mst. Nomita Ali Tarar (Pensioner’s widow),
    • Khursheed Begum Arain (Pensioner’s widow),
    • Shahid Hameed (PTC),
    • Maqbool-ur-Rehman Khan (SNGPL),
    • Abdul Rasheed (OPF Girls College),
    • Mst. Ghulam Kubra (OGDCL),
    • Javed Masih (Total Service Centre).

    Th 1st Annual Pension Day program was organized by Aqeel Ahmad Siddiqui, Director General (Operations) EOBI and his team comprising Sr. officials of Sindh & Baluchistan, Punjab & Islamabad, KPK & Gilgit Baltistan’s Benefits & Contribution Departments and 39 Regional Offices throughout Pakistan.

  • Policy recommends import of used electric vehicles

    Policy recommends import of used electric vehicles

    KARACHI: The import of used electric vehicles has been proposed under ‘National Electric Policy’ for at least two years for giving time to local auto manufacturers to prepare development plans.

    According to recently introduced ‘National Electric Policy’ it is proposed:

    For the first two years i.e. 2019-2021 up to 3 years old ‘used’ all-electric vehicles will be allowed for import.

    This time will give local auto manufacturers to prepare their EV development plans and will also help acclimatize local consumers with a lower upfront cost and will help in establishing charging infrastructure.

    If locally manufactured EVs are available by 2021, then this import allowance can be withdrawn

    However, if there are no locally manufactured EVs by year 2021 the decision to extend this allowance may be pondered upon.

    According to the policy the category of EVs include passenger and commercial cars, jeeps, SUVs, vans and small delivery vehicles of up to one ton cargo hauling i.e. Categories M1 and N1 of UNECE Vehicle Classification.

    Although the car market has developed in Pakistan, there is virtually no EV penetration in the country.

    Therefore, some aggressive steps are required to create an EV market and then reap its benefits.

    The capital cost of electric cars is still high for masses and many countries provide tax breaks, incentives and trade-ins to encourage purchase of electric cars.

    While the cost is high at this time, it is expected to go down steadily and by 2023-24 the cost of electric cars is projected to be at par with their Fossil Fuel Vehicle (FFV) counterparts.

    For Pakistan to create an EV market some good incentives are needed to bring the cost of purchase of EVs down.

    In view of the above the Government of Pakistan, in collaboration with relevant entities shall take the following measures:

    • 1. All existing incentives of the Auto Development Policy 2016-2021 are to remain intact. However, government will give the following further incentives to jump start EV manufacturing in Pakistan only for local manufacturing units:

    • a. All EVs manufactured in Pakistan will be sold at less than one percent General Sales Tax (GST) for the next seven years to bring the purchase price of EVs down.

    • b. Pakistan manufactured EVs will be exempted from registration fees and annual token tax to encourage prospective buyers. Imported EV’s shall receive the same benefit for next 5 years.

    • 2. EV specific parts and components, not being manufactured locally compliant to UNECE 1958 Agreement ‘WP.29’ standards as well as equivalent international standard applied by the United States, European Union and other major EV manufacturers, will be allowed import at one percent custom duty for the next two years until 2021.

    • 3. Registration number plates of EVs will have a distinct color/design to create EV specific zones in high density areas and to introduce distinct incentives for EVs.

    • 4. The State Bank of Pakistan may initially allow new EVs to be purchased under Green Banking Guidelines and may further evolve an incentive scheme push down the price of local EV manufacturing through a better financing scheme. Again this will encourage EV penetration in the country and will reduce upfront cost of EVs.