Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • MCC Gwadar announces auction of vehicles on Nov 12

    MCC Gwadar announces auction of vehicles on Nov 12

    KARACHI: Model Customs Collectorate (MCC) Gwadar has announced auction of used vehicles on November 12, 2019 to be held at Custom House Gaddani.

    Following is the list of vehicles of auction:

    01. BMW Car 4320CC, Model 2002, Chassis No. WBAGL42020DD-78677

    02. Scrap of dismantled Toyota Hilux Surf (SSR) 3000CC, Model 1992, Chassis No. LN13072026160

    03. Toyota Land Cruiser 3400CC, Model 1998, Chassis No. BJ-60-020679

    04. Toyota Land Cruiser 4500CC, Model 1991, Chassis No. HZJ-770002489

    05. Toyota Land Cruiser 2446CC, Model 1985, Chassis No. BJ-61-003506

    06. Mitsubishi Pajero 3446CC, Model 1985, Chassis No. LO48G-3005856

    07. Land Cruiser 3400CC, Model 1989, Chassis No. HJ61-013994

    08. Toyota Hilux Surf SSR-X 2693CC, Model 2000, Chassis No. RZN185-9036661

    09. Toyota Land Cruiser Jeep 3400CC, Model 1989, Chassis No. SJ40-371932

    10. Toyota Premio Car 1500CC, Model 2005, Chassis No. NZT240-5032376

    11. Toyota Mark – X Corolla 2500CC, Model 2005, Chassis No. GRX120-0016870

    12. Toyota X Corolla Car 1492CC, Model 2007, Chassis No. NZE121-0009339

    13. Toyota X Corolla Car 1492CC, Model 2005, Chassis No. NZE-120-3008546

    14. Suzuki Swift Car 1242CC, Model 2007, Chassis No. ZC71S-405758

    15. Toyota Passo Car 1297CC, Model 2005, Chassis No. QNC10-0027802

    16. Toyota Mark-X Corolla 2994CC, Model 2007, Chassis No. GRX121-3001923

    17. Toyota Land Cruiser 2000CC, Model 1993, Chassis No. LJ78-0039971

    18. Toyota Vitz Car 1300CC, Model 2007, Chassis No. SCP90-5080195

    19. Toyota Passo Car 1000CC, Model 2004, Chassis No. M300S-0001146

    20. Toyota ProBox Car 1400CC, Model 2004, Chassis No. NLP51-0006233

    21. Toyota Passo Car 1300CC, Model 2005, Chassis No. QNC10-0025058

    22. Honda Civic Car 1800CC, Model 2002, Chassis No. ESI-1600827

    23. BMW Car 4476CC, Model 2002, Chassis No. WBAGL62090DJ92594

    24. Toyota Axio Car 1496CC, Model 2006, Chassis No. NZE141-6012790

    25. Toyota Prado 3400CC, Model 2000, Chassis No. VZJ90-0004977

    26. Suzuki Super Carry 660CC, Model 1996, Chassis No. DC51T-426256

    27. Toyota Land Cruiser 4500CC, Model 1996, Chassis No. FZJ-800102056

    28. Toyota Land Cruiser 3400CC, Model 1992, Chassis No. PZJ-70-0002960

    29. Toyota Surf 2446CC, Model 1993, Chassis No. KZN130-9032504

    30. Toyota Premio Car 1794CC, Model 2002, Chassis No. ZZT2400040257

  • FBR issues guidelines to facilitate issuance of sales tax refunds in 72 hours

    FBR issues guidelines to facilitate issuance of sales tax refunds in 72 hours

    ISLAMABAD: Federal Board of Revenue (FBR) has issued guidelines to facilitate taxpayers in issuance of sales tax refunds within 72 hours.

    The FBR issued user guidelines for filing Annexure – H i.e. details of stock position of sales tax registered persons. This annexure is mandatory for refund claimants and they may submit statement within 120 days from due date of return filing of particular tax period; other registered persons are encouraged to provide these details, the FBR said.

    The FBR advised the sales tax registered persons to use Annexure – H to upload transactions for the month i.e. purchase, import and consumption only.

    Opening and closing balances are derived/calculated automatically. Same is with Excel uploading otherwise objection of duplicate value will arise.

    The FBR said that opening and closing balance in sales tax return must match with Annexure – H.

    It is further advised to sales tax registered persons to use Annexure – H column consumed / exported during the month (domestic zero rated / export for amount of refund on export mentioned in return (minus tax on local supplies).

    The FBR advised the sales tax registered persons to use column consumed / sold during the month (domestic taxable supplies) for consumption against domestic supplies in relation to output tax declared in return.

    Mark invoice wise inadmissible input tax in Annexure – A relating to SRO 490. Do not attach / claim GD of imports or/and exports that have already been claimed or not relevant.

    The FBR said that credit brought forward from previous claim will automatically be available in Annexure – H.

    The FBR added new items in list of items: sizing, yarn dyeing, yarn doubling, weaving, knitting, processing (bleaching, dyeing and printing), stitching, embroidery.

    The FBR said that RCPC for refund preparation system has been replaced with Annexure – H for all types of sales tax refund claims from July 2019 onward.

    Properly filled Annexure – H without objections and anomalies of data will ensure processing in 72 hours.

  • FBR starts consultation with IR field formation on proposed restructuring

    FBR starts consultation with IR field formation on proposed restructuring

    ISLAMABAD: Federal Board of Revenue (FBR) has started consultation with tax officials on proposed reform program following resentment of senior officers on proposed plan of setting up Pakistan Revenue Authority (PRA) and other reforms.

    The FBR through an official memorandum invited proposals from all field formation of Inland Revenue on the restructuring of FBR.

    In order to address the concerns of the officers and officials of FBR and to make ‘restructuring of FBR’ a more inclusive exercise, the FBR chairman has been pleased to approve the formation of three committees.

    The three committees have been formed at Karachi, Lahore and Rawalpindi/Islamabad and these committees are comprised of senior officers of IRS.

    The committees formed as:

    01. Karachi Committee

    Faiz Illahi Memon, Chief Commissioner of Inland Revenue, Large Taxpayers Unit (LTU) Karachi (Head of Committee)

    Amir Ali Khan Talpur, CCIR, RTO-III, Karachi

    Dr. Aftab Imam, CCIR, CRTO Karachi.

    Shahid Iqbal Baloch, CCIR, LTU-II, Karachi.

    Badaruddin Ahmed Qureshi, CCIR, RTO-II, Karachi.

    Lahore Committee:

    Syed Nadeem Hussain Rizvi, CCIR, CRTO Lahore (Head of Committee).

    Asim Majeed Khan, CCIR, LTU Lahore.

    Ahmed Shuja Khan, CCIR, RTO-II, Lahore.

    Rawalpindi/Islamabad Committee:

    Asim Ahmad, Director General, Intelligence and Investigation, IR, Islamabad (Head of the Committee).

    Bashirullah Khan, CCIR, RTO Rawalpindi

    Shamsul Hadi, CCIR, RTO Islamabad

    Muhammad Naseer Butt, CCIR, LTU Islamabad.

    The FBR chairman advised the Chief Commissioners of remaining RTOs can also frame their recommendations by co-opting officers from BS-17 to BS-20 and BS-16 and below.

    The FBR chairman also approved the following Term of References (TORs):

    01. Future status of Tax Authority.

    a. Under Federal Government as an attached department (as present)

    b. Under Federal Government as a Semi-Autonomous Body.

    c. Completely autonomous.

    02. Human Resource issues such as recruitment, retention, capacity, remuneration etc.

    03. Financial Autonomy – its extent and nature.

    04. Organizational structure (Qualifications/growth/career path).

    05. Work processes.

    The FBR chairman advised the committee to ensure engaging officials falling in BS-16 and below and other cadres falling under their jurisdictions so that their input can also be obtained and incorporated in the recommendations framed by the committees.

    The FBR has asked the committees to finalize their recommendations by November 18, 2019.

  • Weekly Review: Stabilizing macro-economic continue to fuel bullish trend

    Weekly Review: Stabilizing macro-economic continue to fuel bullish trend

    KARACHI: The upswing in the market may be met with some profit-taking next week. The continuation of the sit-in in the federal capital may create some apprehensions which we expect to create some short-lived jitters in the market, analysts said.

    “We expect the stabilizing macro-economy to continue fueling the bullish trend over the medium to long term,” analysts at Arif Habib Limited said.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.2x (2020) compared to Asia Pac regional average of 13.6x and while offering DY of ~8.8 percent versus ~2.5 percent offered by the region.

    The jubilance in the KSE-100 index continued from last week and provided an 11-week high return of 4.7 percent WoW. Expectation of a rate cut in the near future on the back of continuous decline in government securities’ yields was further cemented with the government slashing National Savings Scheme profit rates by 170-228bps across the different schemes.

    However, inflation reading for October 2019 settled at 11.04 percent YoY which was higher than expectations, but failed to deter the positive momentum. Moreover, SBP reserves increased to USD 8.4 billion which is the highest level since April.

    Furthermore, external account position continued to improve with the trade deficit declining 34 percent YoY during 4MFY20. The index closed at 35,978 points – a 6 month high (124 trading sessions), and up by 1601 points WoW.

    Foreign buying was witnessed this week clocking-in at USD 4.5 million compared to a net sell of USD 3.1 million last week. Buying was witnessed in Fertilizer (USD 6.7 million) and OGMCs (USD 3.2 million).

    On the domestic front, major selling was reported by Banks / DFIs (USD 6.0 million) and Insurance Companies (USD 4.6 million). Average Volumes settled at 258 million shares (up by 55 percent WoW) while average value traded clocked-in at USD 54 million (up by 52 percent WoW).

  • Jewelers, real estate agents to maintain register, report suspicious transactions: draft rules issued

    Jewelers, real estate agents to maintain register, report suspicious transactions: draft rules issued

    ISLAMABAD: Federal Board of Revenue (FBR) has proposed to make mandatory for jewelers and real estate agents to report suspicious transactions. In this regard the FBR issued draft rules through SRO 1320(I)/2019 to make amendments in Income Tax Rules, 2002.

    As per the draft rules, the designated persons as jewelers and real estate agents should maintain documents and records, where the value of transaction exceeds Rs2 million in case of immovable properties and Rs one million in other cases.

    The FBR said that the designated persons would require to obtain and maintain the following relating to its buyers and sellers, namely:

    In case of an individual any of the following documents should be obtained by jewelers and real estate agents:

    i. copy of computerized National Identity Card (CNIC) issued by National Database and Registration Authority (NADRA).

    ii. copy of National Identity Card for Overseas Pakistanis (NICOP) issued by NADRA.

    iii. copy of Pakistan Origin Card (POC) issued by NADRA.

    iv. copy of Alien Registration Card (ARC) issued by NADRA, and

    v. copy of passport, having valid visa on it or any other proof of legal stay along with the passport (foreign nationals only).

    The jewelers and real estate agents also required to keep a list of all such customers where the business transaction was refused or needed to be closed either on account of failure of the customer to provide the relevant documents or the original documents for viewing as required.

    Regarding furnishing of information, according to the draft rules, the sale and purchase register for the immediately preceding calendar month shall be uploaded by the designated persons on the IRIS online system within 15 days of the end of the preceding calendar month for transactions.

    The draft rules said that the designated persons would mark a transaction as suspicious in the IRIS online system if the person has reason to believe that the transaction or a pattern of transactions of which the transaction is a part:

    (a) involves funds derived otherwise than from the business activity or assets declared to the income tax authorities;

    (b) is designed to evade any requirement of the Income Tax Ordinance, 2001 or to conceal the beneficial owner or his activity.

    (c) has no apparent economic or lawful purpose after examining the available facts, including the background and possible purpose of the transaction; or

    (d) involves financing of terrorism, including fund collected, provided, used or meant for, or otherwise linked or related to, terrorism, terrorist acts or organization and individual concerned with terrorism.

    According to the draft rules, the designated persons have also been asked to mark as suspicious transaction if the buyer or seller –

    (a) frequently changes bank accounts;

    (b) uses a bank account other than an account maintained in the name of beneficial owner;

    (c) makes or receives payment in cash or primarily in cash; or

    (d) maintains a creditor or debtor account with the designated person and instructs the designated person to adjust the balance of his account against a creditor debtor account of another buyer or seller.

  • Stock market gains 220 points amid mixed impact of MSCI review

    Stock market gains 220 points amid mixed impact of MSCI review

    KARACHI: The stock market gained 220 points on Friday after mixed trading activities to respond MSCI review.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 35,978 points as against 35,759 points showing an increase of +220 points.

    Analysts at Arif Habib Limited said that the market on a positive note today with +20 points. The Index went uni-directional and gained 230 points by the end of first session, while reaching a high of +290 points, and finally closed the day with +220 points.

    Following past couple of sessions, Cement and Steel continued trading in red and kept the index under pressure. MSCI review, announced last evening, proved to be a sigh of relief for institutional funds which were expecting an exclusion from the Index and resultant deluge of selling activity in outgoing stocks.

    On the contrary, MSCI review proved largely to be a non-event, which gave confidence to investors in large cap Banks and E&P companies, particularly MCB, HBL, OGDC and PPL. Major activity (volume wise) was observed in PIAA, WTL, KEL and HUMNL.

    Sector wise, most volumes were registered in Technology (43.5 million), followed by Cement (25.6 million) and Inv Banks (18.3 million).

    Sectors contributing to the performance include Banks (+93 points), E&P (+64 points), Fertilizer (+47 points), Inv Banks (+31 points), O&GMCs (+13 points).

    Volumes continued declining trend and went down from 265.9 million shares to 209.4 million shares (+21 percent DoD). Average traded value also declined by 19 percent to reach US$ 41.9 million as against US$ 51.6 million.

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

    Stocks that contributed positively include MCB (+33 points), UBL (+30 points), DAWH (+30 points), OGDC (+27 points) and ENGRO (+27 points). Stocks that contributed negatively include HUBC (-27 points), COLG (-13 points), DGKC (-10 points), PMPK (-8 points), and FCCL (-7 points).

  • PM directs eradication of corruption in Utility Stores, ensure availability of essential items at lower prices

    PM directs eradication of corruption in Utility Stores, ensure availability of essential items at lower prices

    ISLAMABAD: Prime Minister Imran Khan has directed administration of Utility Stores Corporation (USC) to ensure eradication of corruption in the organization and ensure availability of essential foods items at subsidized rates following release of Rs6 billion.

    Prime Minister Imran Khan on Friday chaired a meeting to reduce prices of essential commodities which will provide immediate relief to the people.

    The Prime Minister directed that the supply of essential items should be ensured through use of Information technology and corruption must be eradicated at all Utility Store outlets.

    The meeting was attended by Minister for Planning Makhdoom Khusro Bakhtiar, Minister for Communications Murad Saeed, SAPM for Social Welfare Dr. Sania Nishtar, Secretaries and Additional Secretaries of Ministry of Finance, Planning Commission, Communication, National Food Security and Industry, Chairman and Managing Director Utility Stores Corporation, Chief Commissioner Islamabad and other senior officials.

    The prime minister said that provision of relief to the people is the top priority of the government.

    “We strive to provide special relief to low income groups and poverty-stricken families,” he said.

    The Prime Minister said that in view of the challenging economic situation, the government took difficult decisions.

    Due to these decisions, the economy is stabilizing today and economic indicators are showing improvement; the situation will improve further in the coming days.

    Despite the difficult conditions, every possible effort to provide relief to the people will be undertaken, added the prime minister.

    The meeting was briefed on the current situation of the prices of essential commodities (flour, wheat, sugar, ghee, rice and pulses) and measures to control them.

    Chairman and Managing Director Utility Stores Corporation apprised the meeting that immediate grant of Rs6 billion from the government will reduce the prices of basic essential food items.

    The prime minister was informed that the immediate supply of funds by the government would lead to price reduction of Rs-132 per kg in flour, Rs-09 per kg in sugar, Rs-30 per kg in ghee, Rs-20 per kg in rice and Rs-15 in pulses which would be made available for public consumption at Utility Stores.

    The prime minister was briefed on the steps taken to curb corruption and embezzlement in the Utility Stores, and to ensure the sufficient and steady supply of essential food items to the public.

    The prime minister was informed that it is being ensured that the purchased items at the Utility Stores are received at the Stores’ warehouses without pilferage for packaging and onward dispatch to the Utility Stores outlets.

    The measures are aimed at ensuring the quality of goods at Utility Stores in addition to eradicating corruption.

    Minister of Communications Murad Saeed said that in addition to a network of 4,000 utility stores, 800 post offices spread across the country can also be used to supply essential food items to the public.

    He further elaborated that home delivery service will soon be started by Pakistan Post Office to supply items at home to the poor and the needy.

  • FBR withdraws 3pc value addition tax on imported consumer items

    FBR withdraws 3pc value addition tax on imported consumer items

    ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn three percent minimum value addition tax on import of consumer items on which sales tax is paid on retail basis.

    The FBR on Friday issued SRO 1321(I)/2019 and amended the Twelfth Schedule of Sales Tax Act, 1990 under which three percent minimum value addition sales tax has been imposed on all imported goods subject to exclusions.

    As per the amendment the FBR withdrew the imposition of minimum value addition tax on import of goods specified in the Third Schedule of the Sales Tax Act, 1990.

    Following is Third Schedule to Sales Tax in which consumer items are mentioned for collection of sales tax on the basis of printed retail price:

    • Fruit juices and vegetable juices.
    • Ice Cream.
    • Aerated waters or beverages.
    • Syrups and squashes.
    • Cigarettes.
    • Toilet soap
    • Detergents
    • Shampoo
    • Toothpaste
    • Shaving cream
    • Perfumery and cosmetics.
    • Tea
    • Powder drinks
    • Milky drinks
    • Toilet paper and tissue paper
    • Spices sold in retail packing bearing brand names and trade marks
    • Shoe polish and shoe cream
    • Fertilizers
    • Cement sold in retail packing
    • Mineral/bottled water
    • Household electrical goods, including air conditioners, refrigerators, deep freezers, televisions, recorders and players, electric bulbs, tube-lights, electric fans, electric irons, washing machines and telephone sets.
    • Household gas appliances, including cooking range, ovens, geysers and gas heaters.
    • Foam or spring mattresses and other foam products for household use.
    • Paints, distempers, enamels, pigments, colours, varnishes, gums, resins, dyes, glazes, thinners, blacks, cellulose lacquers and polishes sold in retail packing
    • Lubricating oils, brake fluids, transmission fluid, and other vehicular fluids sold in retail packing.
    • Storage batteries excluding those sold to
    • Automotive manufacturers or assemblers
    • Tyres and tubes excluding those sold to automotive manufacturers or assemblers
    • Motorcycles
    • Auto rickshaws
    • Biscuits in retail packing with brand name
    • Tiles
    • Auto-parts, in retail packing, excluding those sold to automotive manufacturers or assemblers.

    Procedure and conditions under the Twelfth Schedule has been defined as:

    (1) The sales tax on account of minimum value addition as payable under this Schedule (hereinafter referred to as value addition tax), shall be levied and collected at import stage from the importers on all taxable goods as are chargeable to tax under section 3 of the Act or any notification issued thereunder at the rate specified in the Table in addition to the tax chargeable under section 3 of the Act or a notification issued thereunder:

    Prior to the latest amendment the value addition tax under this Schedule shall not be charged on:

    (i) Raw materials and intermediary goods meant for use in an industrial process which are subject to customs duty at a rate less than 16% ad valorem under First Schedule to the Customs Act, 1969;

    (ii) The petroleum products falling in Chapter 27 of Pakistan Customs Tariff as imported by a licensed Oil Marketing Company for sale in the country;

    (iii) Registered service providers importing goods for their in-house business use for furtherance of their taxable activity and not intended for further supply;

    (iv) Cellular mobile phones or satellite phones;

    (v) LNG / RLNG;

    (vi) Second hand and worn clothing or footwear (PCT Heading 6309.000);

    (vii) Gold, in un-worked condition; and

    (viii) Silver, in un-worked condition.”

  • FBR officials display banners against proposed layoff plan

    FBR officials display banners against proposed layoff plan

    KARACHI: The officials of Federal Board of Revenue (FBR) have protested against new reform program planned by the government, which may result in layoff in the revenue body.Surplus FBR 02Surplus FBR 02Surplus FBR 02Surplus FBR 04Surplus FBR 05

    The officials at the Income Tax Building Karachi on Friday displayed protest banners around the building to express their resentment against the reform plan, which can cause surpluses of staff.

    The officials through banners expressed their displeasure against IMF linked policy in Pakistan.

    The officials are protesting against news reports which said around 10,500 IRS officials would become surplus in the new system.

    The sources in the tax office said that for the past many years the government had banned new appointment in the FBR and the many of the existing staff were on verge of retirement.

  • Rupee gains eight paisas on increase in forex reserves

    Rupee gains eight paisas on increase in forex reserves

    KARACHI: The Pak Rupee gained another eight paisas against dollar on Friday owing to increase in foreign exchange reserves.

    The rupee ended at Rs155.47 to the dollar from previous day’s closing of Rs155.55 in interbank foreign exchange market.

    Currency experts said that increase in foreign exchange reserves had helped the rupee to appreciate.

    The liquid foreign exchange reserves of Pakistan have increased by $428 million to $15.518 billion by week ended November 01, 2019.

    The foreign exchange reserves were at $15.089 billion by week ended October 25, 2019.
    The reserves held by SBP increased by $443 million to $8.357 billion by week ended November 01, 2019 as compared with $7.914 billion in the preceding week.

    The reserves held by commercial banks decreased by $15 million to $7.16 billion by week ended November 01, 2019 as compared with $7.715 billion a week ago.

    The foreign currency market was initiated in the range of Rs155.53 and Rs155.56. The market recorded day high of Rs155.55 and low of Rs155.47 and ended at Rs155.47.

    The exchange rate in open market also witnessed appreciation in rupee value. The buying and selling of dollar was recorded at Rs155.20/Rs155.50 from previous day’s closing of Rs155.30 and Rs155.60 in cash ready market.