KARACHI: The Federal Board of Revenue (FBR) has announced that there will be no further extensions for filing income tax returns for the tax year 2019. Taxpayers have six days left to submit their returns, with the final deadline set for November 30, 2019. According to sources within the FBR, this decision comes after multiple extensions were granted to facilitate compliance.
(more…)Author: Mrs. Anjum Shahnawaz
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MCC Preventive announces vehicles’ auction on Nov 25
KARACHI: Model Customs Collectorate (MCC) Preventive, Karachi announced auction of confiscated vehicles to be held on November 25, 2019 at Ghasbandar East Wharf, Karachi.
Following vehicles will be presented for auction:
01. Toyota Lexus Car, Reg. No. UC-868, Model 2006, Chassis No. JTHBG 963905034702
02. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999cc, Chassis No. MCU-10-0013510
03. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, Chassis No. JZX110-6000922
04. Toyota AXIO-X car – White Color, Reg. No. BFE-068, 1496cc, Model 2007, Chassis No. NZE-141-6028039
05. Toyota Land Cruiser Jeep, Silver Color, Reg. No. BG-1131, Model 1989,3400cc, Chassis No.BJ 60-023765
06. Mercedes Benz Saloon Car Black, Reg. No. BFF-014, Model 2007, Chassis No. WDD2193222A117436
07. Toyota Land Cruiser Jeep P. White, Reg. No. LZN-888, Model 1999, 4663cc, Chassis No. UZJ 100-0081129
08. Toyota Surf Jeep White, Reg. No. BF-9252, Model 1998, Chassis No. RZN185-9019896
09. Toyota Hilux Surf Jeep, Reg. No. CJ-4242(Sindh), Model 1990, 2446cc, Chassis No. LN130-0026273
10. Nissan X-Trail 5 Door Jeep – Pearl White, Reg. No. GR-621, Model 2005, Chassis No. NT 30-100374
11. Toyota Mark X Car Trim, Reg. No. BFB-837, Model No. 2005, 2499cc, Chassis No. GRX 120-3007142
12. Toyota Land Cruiser Jeep (Petrol) White, Reg. No. BF-5933, Model 1995, 4476cc, Chassis No. FZJ 80-0109507
13. Honda Civic Hybrid Car, Reg. No. AND-312, Model No 2008, 1339cc, Chassis No. FD 3-1203642
14. Toyota PASSO car, Reg. No. G5-6996, Model 2006, 996cc, Chassis No. KGC 30-0044392
15. Toyota AXIO Car, Reg. No. KCH-434, Model 2006, 1496cc, Chassis no. NZE141-6003694
16. Mercedes Benz Saloon car (AG), Reg. No. AB 1001, Chassis No. WDB1240312B476728
17. Toyota Hilux Surf Jeep, Reg. No. UU-691, Model 1992, 240cc, Chassis No. LN130-7022502
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FBR initiates action against concealed amounts in immovable property purchases
ISLAMABAD: Federal Board of Revenue (FBR) has initiated scrutiny of transactions of immovable properties, especially those where amnesty was availed, sources said.
The sources said that the FBR had initiated examination of transactions of sales and purchases of immovable properties during past years, in order to find out the quantum of amount concealed or not declared.
It is believed that huge amount of black money was parked in the real estate business. The buyers and sellers deliberately are not showing actual value of the properties in their agreements.
The sources said that the FBR obtained data under Section 236C, Section 236K and Section 236W of the Income Tax Ordinance, 2001.
They said that the investigation of property transactions would be of past five years.
The seller was required to pay advance tax under Section 236C. Similarly, buyer was required to pay withholding tax under Section 236K. Meanwhile, a buyer is allowed to pay 3 percent income tax to whiten money invested in property purchase. This amnesty was allowed to undisclosed amount that is invested to the extent of values notified by the FBR.
The sources said that the FBR headquarters had transferred thousands of cases of immovable properties to field formation of Inland Revenue.
The FBR collected information of buyers and sellers of immovable properties from property registrar offices of the provinces.
The field formations have been asked to identify those persons who had not filed their income tax returns and wealth statement.
The field formations would initially send those persons who made transactions but had not filed their returns.
Under Section 114 of the Income Tax Ordinance, 2001 the following owners of immovable properties are required to file income tax returns:
— owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;— owns immoveable property with a land area of five hundred square yards or more located in a rating area;
— owns a flat having covered area of two thousand square feet or more located in a rating area.
The FBR has also asked the field formations to investigate the payments made for property transactions. The sources said that the FBR collected withholding tax on the notified valuation tables for immovable properties.
The notified values of the FBR were very low when compared with the open market values. Therefore, there was ample chance of concealment in property transactions.
The field formation will ask banks to provide details of identified persons, especially the transactions recorded by the banks for the payment of properties.
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FPCCI urges convention compliance for continuation of GSP Plus
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to ensure compliance to international conventions for continuation of GSP Plus status granted by European Union (EU).
In a statement issued on Saturday, Engr. Daroo Khan Achakzai, President, FPCCI urged the government to take all necessary measures in compliance of core international conventions pertaining to social compliance, including human rights, labor rights, environment and good governance which are pre requisite for the continuation of GSP Plus status to Pakistan.
While highlighting the importance of GSP Plus, he stated that Pakistan is the major beneficiary of GSP Plus from EU which is the second largest trading partner of Pakistan after USA and has positive trade balance with the bloc.
He stated that GSP Plus allows 20 percent of Pakistani exports to enter EU market at zero tariff and 70 percent at preferential rates and it was expected that Pakistan’s exports to the EU would increase by 20 percent or more during the next few years.
EU GSP Plus granted in 2013 and since then our export has increased to US$ 7.9 billion from US$ 6.2 billion but this increase is only in textile and clothing while the exports of many products like carpet, pharmaceutical, iron & steel, edible fruit, oil seed, copper, plastic, sugar etc. has declined as compared to pre GSP Plus period, he lamented.
Pakistan’s export to EU is mainly dominated by textiles and clothing which accounts 82 percent of total exports which is facing strict competition with Bangladesh and Sri Lanka.
He underscored the need to diversify and value addition in Pakistan’s export including carpets, leather, furniture, plastics, sports goods and agriculture products to exploit the full potential of GSP Plus.
The EU assessment report (2016) has also indicated that Pakistan’s export to EU is heavily relied on one product which indicates a risky situation for Pakistan, he added.
The President FPCCI also appreciated the signing of the EU-Pakistan Strategic Engagement Plan (SEP) in June 2019 for the establishment of a Security Dialogue, expanding relations in the areas of connectivity, migration, mobility, climate change and energy, education and culture, and science and technology.
He also underlined the need of enhancement of foreign investment in Pakistan from EU as Pakistan has improved its ease of doing business and has brought several reforms in business.
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Banking channel between Pakistan, Iran to become reality soon: KCCI
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday hoped that banking channel between Pakistan and Iran will become reality soon.
Agha Shahab, President, KCCI said at a meeting with an eight members high level delegation from Iran, which was led by the Managing Director of Milad-e-Noor Ali Mohtassham Amiri .
Agha Shahab noted that the negotiations on Free Trade Agreement (FTA) are underway as both the countries have shared their desire of upgrading Preferential Trade Agreement (PTA) into Free Trade Agreement (FTA) for which initial drafts have already been shared while the State Bank of Pakistan has also shared draft of Memorandum of Understanding (MoU) for signing its Banking Paying Arrangement (BPA) with Iran’s Iranian Bank Markazi Jomhouri.
Both countries have already signed MoU through which channels would be opened in the central banks of both the countries for trade transactions that would reduce the usage of dollar account for Letter of Credit (LC) clearance.
He hoped: “the desperately needed proper banking channel between Pakistan and Iran becomes a reality soon which would surely boost the existing trade ties.”
He was of the opinion that abundant opportunities were available in the Iranian dairy, livestock, meat and beverages sectors for Pakistani traders and investors while Pakistan can also take benefit of Iran’s petrochemical sector.
Agha Shahab underscored the need to sort out infrastructural constraints to enhance bilateral trade via Quetta-Taftan land route whereas regular operation of ECO container train will lend impetus to cargo and transit facilities between the two countries.
While underscoring the need for a realistic approach, President KCCI said that KCCI was keen to strengthen trade ties with their counterparts in Iran.
Managing Director of Milad-e-Noor Ali Mohtassham Amiri, on the occasion expressed the eagerness to improve trade ties with the Pakistani business community which would surely result in further improving the existing trade volume between the countries.
Managing Director of Milad-e-Noor Ali Mohtassham Amiri stated that they were intending to improve trade ties with Pakistan and if serious efforts are made from both side, Pakistan and Iran can certainly become powerful partners.
Commercial Attaché of the Iranian Consulate in Karachi Mahmoud Hajy Yousefi Pour, in his short remarks, pointed out that huge potential exists to enhance trade and investment cooperation between the two countries but because of some hurdles, trade was not prospering at the desired pace which requires attention.
The bilateral trade between Pakistan and Iran was much less than the potential as Pakistan exports stood at a mere $330.2 million while the imports were around $1.247 billion during 2018.
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Customs foils bid to smuggle explosive material in garb of toys consignment
KARACHI: Customs authorities have foiled a bid to smuggle explosive material into Pakistan in the garb of toy consignments, a statement said on Saturday.
According to details Model Customs Collectorate (MCC) Port Muhammad Bin Qasim foiled the bid to smuggle into Pakistan a consignment of explosive filled fireworks/firecrackers in the garb of toys and fun fair items.
M/s. Abrar Traders, Lahore, through his clearing agent A R Logistics has filed the goods declaration for clearance of imported assorted toys and fun fair items.
However, upon detail examination scrutiny by the collectorate staff, fireworks and fireworks crackers guns were found willfully concealed within the cartons of assorted toys.
The explosive/firecrackers are restricted items as per Import Policy Order and prone to smuggling under Section 2(s) of the Customs Act, 1969.
Accordingly, the collectorate seized the consignment and lodged an FIR. Further investigations are underway.
Mumtaz Ali Khoso, the collector of customs, appreciated the examination staff for detecting the case and reiterated the resolve not to allow any illegal activity at Port Qasim by unscrupulous elements.
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Weekly Review: Sentiments to remain positive on improved economic indicators
KARACHI: The stock market likely to remain positive during the next week owing to rising foreign investment in debt securities.
Analysts at Arif Habib Limited said that market to remain positive in the upcoming week.
As per expectation, policy rate remained unchanged at 13.25 percent. With current account deficit turning surplus at USD 99 million in October 2019 and foreign reserves rising amid investment in T-Bills (reaching USD 1bn) from July 2019 to date, positive sentiments are expected to persist.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) index is currently trading at a PER of 6.5x (2020) compared to Asia Pac regional average of 13.5x and while offering DY of ~8.4 percent versus ~2.6 percent offered by the region.
The market commenced on positive note this week, breaching 38,000 points level (last witnessed in April’19), amid continued confidence in business climate.
Furthermore, IMF approved issue of sovereign guarantees worth Rs250 billion for tackling circular debt which improved sentiment in the power sector.
However, during the week bears briefly rushed in amid profit taking, implementation of axle load policy and higher inflationary readings causing concerns over delay in SBP’s policy rate cut.
Albeit, the fear was temporary as as steep rally was witnessed as the week closed on Friday.
That said, the benchmark KSE-100 Index gained 342 points (up by 0.9 percent) WoW, settling at 37,926 points.
Sector-wise positive contributions came from i) Power Generation & Distribution (140 points), ii) Fertilizer (102 points), and iii) Oil & Gas Marketing Companies (66 points) while negative contributions were led by i) Commercial Banks (74 points), ii) Transport (15 points) and iii) Refinery (11 points). Scrip-wise positive contributions were led by HUBC (132 points), FFC (94 points), PSO (40 points), LUCK (32 points) and NATF (29 points).
Foreign buying was witnessed this week clocking-in at USD 8.5 million compared to a net buy of USD 4.2 million last week.
Buying was witnessed in Commercial Banks (USD 6.7 million) and Fertilizer (USD 3.6 million). On the domestic front, major selling was reported by Banks / DFIs (USD 15.2 million) and Insurance Companies (USD 2.6 million).
Average Volumes settled at 331mn shares (up by 6 percent WoW) while average value traded clocked-in at USD 74 million (up by 15 percent WoW).
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Procedure to change personal tax details
ISLAMABAD: Federal Board of Revenue (FBR) has issued procedure to facilitate taxpayers in amending their personal details for filing tax returns and making transactions.
The FBR said that that a person can change their registration information recorded for filing Income Tax Return in three possible ways.
Changing information through Iris, a person can change/update information by logging into Iris.
Information can be updated by the person through Registration Form 181 (filed for modification) Income Tax, which included: Mobile number; Email; Personal/Residential Address; Business Address; Addition of Business Branches; Legal Representative u/s 87 of Income Tax Ordinance 2001; Bank Account.
Changing information through Federal Board of Revenue (FBR) helpline, a person can also change or update information through FBR helpline via phone or email.
Information can be updated through the helpline: Name; Date of Birth; Gender; Disability Status; Senior Citizen Status.
Changing Information by visiting Regional Tax Office (RTO)
The person will have to visit their relevant RTO For changes in registration regarding issues, included: Discontinuance of business; Jurisdiction for Income Tax Return assessment; Deregistration; Updating CNIC number; Updating Pakistan Origin Card (POC).
A person will have to take relevant documents to RTO in order to successfully change details regarding Income Tax Registration.
Officials in FBR said that the procedure can help taxpayers in updating their profile on the official web portal in order to make their return filing correct and accurate. This will also help taxpayers to avoid any hassles in future.
The return filing date for tax year 2019 is due on November 30, 2019.
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Customs launches ‘authorized economic operators’ program for business entities
ISLAMABAD: Pakistan Customs has launched Authorized Economic Operators (AEO) program for business entities in order to provide maximum facilitation the trade and industry.
A statement on Friday said that the federal government has launched first trade facilitation program of its kind under the name and banner of AEO.
The program has been chalked out in line with best international practices and in accordance with World Customs Organization (WCO) security standards.
Under the said program, the government will certify trustworthy business entities which could demonstrate that they are credible, secure and have a clean history of compliance with national laws and, in return, a policy of maximum facilitation will be adopted by all government departments toward such trusted entities so that they could concentrate on the growth of their businesses.
To highlight the spirit of AEO Program, Chairman FBR and Member Customs (Policy), convened a meeting in FBR Headquarters of all government departments and border agencies who were taken on board on the said Program that will substantially reduce the cost of doing business for the trade and industry.
Shabbar Zaidi, Chairman FBR informed the participants that AEO Program was a great step towards traders facilitation and ease of doing business as “red tapism” of government departments will be replaced with “red carpet” for the trustworthy business entities, and will provide enabling environment for the business community to achieve their maximum potential.
Muhammad Javed Ghani, Member Customs (Policy) requested the participants from all government departments to come forward for feedback to chalk out an attractive AEO Program that could meet maximum aspirations of the trade and industry.
The representatives from government departments i.e., Ministry of Foreign Affairs, Anti- Narcotics Force (ANF), Engineering Development Board (EDB), Ministry of Industries, Home Department Sind & KP, Pakistan Nuclear Regulatory Authority, Pakistan Quality Standards & Quality Certification Authority (PSQCA), Climate Change and PEMRA appreciated the AEO initiative and agreed that it was the first initiative of its kind which aims at recognition of trusted business partners at Federal Government level and entails benefits from all government departments.
Such unique initiative, the participants added, has great potential to boost businesses which are the backbone of national economy.
Chairman FBR briefed the participants that initially, AEO Program will be implemented on export stage that will not only boost national exports, but will also play vital role in jobs creation.
Subsequently, ambit of AEO Program will be extended to other sectors of the economy for maximum facilitation and priority treatment by all government departments.
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Persons on ATL exempted from tax on cash withdrawal
ISLAMABAD: There is no withholding tax on cash withdrawal from banking system by a person, whose name is appeared on Active Taxpayers List (ATL), officials in Federal Board of Revenue (FBR) said on Friday.
Under Section 231A of Income Tax Ordinance, 2001 the withholding tax rate is 0.6 percent for a person making cash withdrawal above Rs50,000 from banking system.
However, this tax rate is only applicable on a person whose name is not appeared on ATL.
For appearing on the ATL a person is required to file his annual income tax returns by due date prescribed by the FBR. In other cases the person can file his return after due date after payment of penalty to ensure his name on the ATL.
The officials said that through Finance Supplementary (Second Amendment) Act, 2019 the government abolished 0.3 percent withholding tax rate on persons who were compliant in return filing.
The Section 231A related to cash withdrawal from a bank said that every banking company shall deduct tax at the rate specified in Division VI of Part IV of the First Schedule, if the payment for cash withdrawal, or the sum total of the payments for cash withdrawal in a day, exceeds fifty thousand rupees.
Explanation: For removal of doubt, it is clarified that the said fifty thousand rupees shall be aggregate withdrawals from all the bank accounts in a single day.