Author: Mrs. Anjum Shahnawaz

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.

November 9, 2019
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.”
November 9, 2019
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.

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.

November 8, 2019
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.

November 8, 2019
FBR proposed to collect sales tax on services

ISLAMABAD: The federal government is planning to takeover right to collect sales tax on services from the provinces as it was felt the true potential of collection was not realized.

According to minutes of the meeting chaired by the prime minister to review proposed restructuring of Federal Board of Revenue (FBR) and domestic resource mobilization, held last month, it is discussed that revenue potential of General Sales Tax (Services) is not being fully realized owing to jurisdiction issues between FBR and provincial revenue authorities.

It is also discussed that cross provincial jurisdictional and conflict of interest issues also stifles collection of GST on services.

The sales tax on services needs to be collected centrally by FBR as per rates legislated by provincial governments.

Tax proceeds of GST on services can be transferred directly to provinces as per delineated jurisdiction and share.

In this regard it is decided that a joint committee comprising representatives of ministry of finance, FBR and provincial revenue authorities would be constituted to finalize proposal for central collection of GST on Services by the FBR.

It is further decided mechanism of transfer of tax proceeds of GST on services be worked out by the ministry of finance.

It is worth mentioning that prior the 18th Amendment to the Constitutions, the FBR was collecting sales tax on services. However, after the amendment the Sindh government was the first to establish a separate entity to collect sales tax on services arising within the jurisdiction of the province.

The other provinces also followed the same and set up their revenue collecting agencies.

Experts believed that the plan of the federal government would be reversal of such transfer of rights to the provinces.

November 8, 2019
Pakistan’s foreign exchange reserves increase to $15.518 billion

KARACHI: The liquid foreign exchange reserves of Pakistan have increased by $428 million to $15.518 billion by week ended November 01, 2019, State Bank of Pakistan (SBP) said on Thursday.

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.

November 7, 2019
IR officers oppose proposed setup of Pakistan Revenue Authority

KARACHI: Senior officers of Inland Revenue Service (IRS) has strongly opposed the formation of planned Pakistan Revenue Authority (PRA) and said it will have negative effect on revenue collection.

The concerns were raised at a meeting of IRS Officers Association held on Thursday, which was attended by more than 120 IRS officers.

It was unanimously agreed that the officers were in support of a meaningful and transparent reforms aimed at creating a viable automated and effective revenue organization.

However, they showed their concerns over the discreetly and secretly approved haphazard reform plans which has apparently been prepared by non-service elements.

It is neither any detailed plan nor it is legal in the strict sense of the constitutional and statutory impediments in the federal setup of the country, according to a statement.

It said that the IRS is the largest service rank and is equipped with on-job training with necessary professional skills for effective tax collection given the country’s socio-economic ground realities.

The reforms in revenue or in any state body, if experimented without involving the stakeholders as well as being oblivious of the ground realities, are bound to fail.

In this backdrop, the concerns were raised that the under discussion reforms cannot be perceived to bring any betterment rather are to end up in creating confusion and uncertainty.

It would frustrated the pace of tax collection which is much needed for defence and development of the country,” it said, adding that it would also frustrate the documentation and revenue drive in place by IRS against the Benami transactions/properties, to tax assets held abroad and weaken the case of Pakistan in the FATF proceedings.

The meeting agreed that these reforms are aimed at creating a controversial authority wherein non-civil servants could be hired representing business communities and professional organization which might encourage tax avoidance and evasion instead of revenue collection.

The reforms were perceived as a kind of coup against the willing, professional, sound and hands on experienced professionals of IRS who, despite business friendly tax policies, have raised tax revenues to five times in last ten years and that too with limited / meager resources, with no financial autonomy.

They found that reforms under discussions conveyed the impression of some conspiracy hatched by non-professionals in a conniving and shabby manner which would lead to further deformation and deterioration of the service as well as the national economy.

The participants showed unflinching support and solidarity with the chief commissioners for conveying the IRS community’s concerns to the Chairman FBR during the Chief Commissioners Conference held recently in Islamabad.

Simultaneously, the house also expressed solidarity and support to the lower pay scale employees of IRS and assured them their concerns with regard to service conditions in the proposed reforms programme would be conveyed to the higher ups with the suggestion that representatives of these employees should also be made part of the consultative/inclusive process.

The meeting ended with the resolution reiterating that the IRS officers and employees are not against reforms but the process should be inclusive giving due weightage to the concerns of all the stakeholders.

November 7, 2019
Stock market gains 105 points in narrow range trading

KARACHI: The stock market increased by 105 points on Thursday in a narrow band trading activities.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 35,758 points as against 35,6553 points showing an increase of 105 points.

Analysts at Arif Habib Limited said that the market traded in a narrow range between -195 points and +181 points, closing the session +105 points.

Higher than expected inflation caused concern amongst investors about the upcoming monetary policy, where a few days back market had consensus view of a rate cut.

Selling activity was therefore observed in Cement and Steel sectors largely, which have lately seen consistent rally before and after recent announcement of financial results.

Consistent with recent trading pattern, technology sector registered the most trading volume with 68.2 million shares, followed by Cement (30.4 million) and Chemical (19.5 million).

Among scrips, WTL led the volumes with 45.8 million shares, followed by PAEL (16.7 million) and ICIBL (13.6 million).

Sectors contributing to the performance include (Fertilizer (+60 points), O&GMCs (+29 points), E&P (+23 points), Tobacco (+21 points), Autos (+20 points) and Cement (-43 points).

Volumes declined further from 298.1 million shares to 265.8 million shares (-11 percent DoD). Average traded value also declined by 24 percent to reach US$ 51.5 million as against US$ 67.7 million.

Stocks that contributed significantly to the volumes include WTL, PAEL, ICIBL, HUMNL and MLCF, which formed 38 percent of total volumes.

Stocks that contributed positively include PAKT (+29 points), ENGRO (+28 points), POL (+26 points), PSO (+23 points) and HUBC (+19 points). Stocks that contributed negatively include DGKC (-15 points), NESTLE (-11 points), FCCL (-11 points), DAWH (-10 points), and LUCK (-9 points).

November 7, 2019
Rupee gains four paisas against dollar on export receipts

KARACHI: The Pak Rupee maintained its gain against dollar on Thursday and further appreciated by four paisas in interbank foreign exchange market.

The rupee ended Rs155.55 to the dollar from previous day’s closing of Rs155.59 in interbank foreign exchange market.

Currency experts said that the lower demand for import payments and inflows of export receipts and remittances helped the rupee to appreciate.

The foreign currency market was initiated in the range between Rs155.60 and Rs155.55. The market recorded day high of Rs155.65 and low of Rs155.55 in interbank foreign exchange market.

The rupee gained 10 paisas against dollar so far this week started November 04, 2019.

The exchange rate in open market witnessed stable value of the rupee. The buying and selling of dollar was recorded at Rs155.30/Rs155.60, the same previous day’s closing level, in cash ready market.

November 7, 2019
FBR assigns additional charge of International Tax Operations to IRS officers

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday assigned additional charge to the officers of Inland Revenue Service (IRS) posted at Automatic Exchange of Information (AEOI) Zones of the post at International Tax Operation.

The following officers of IRS BS-17-20 are assigned the additional charge of the posts mentioned against each with immediate effect and until further orders:-

01. Irshad Hussain (IRS/BS-20) is posted as CIR (AEOI Zone), Lahore has been assigned additional charge of Director, Directorate of International Tax Operations, Lahore.

02. Shakeel Ahmad Kasana (IRS/BS-20) is posted as CIR (AEOI Zone), Karachi has been assigned additional charge of Director, Directorate of International Tax Operations, Karachi.

03. Zulfiqar Ahmad (IRS/BS-20) is posted as CIR (AEOI Zone), Islamabad has been assigned additional charge of Director, Directorate of International Tax Operations, Islamabad.

04. Irfan Ali (IRS/BS-19) is posted as ADCIR (AEOI Zone), Karachi has been given additional charge of Additional Director, Directorate of International Tax Operations, Karachi.

05. Waqas Rashid Ch. (IRS/BS-19) is posted as ADCIR (AEOI Zone), Lahore has been assigned additional charge of Additional Director, Directorate of International Tax Operations, Lahore.

06. Zubair Khan (IRS/BS-18) is posted as DCIR (AEOI Zone), Lahore has been assigned additional charge of Deputy Director, Directorate of International Tax Operations, Lahore.

7. Ms. Qayyum Rani (IRS/BS-18) is posted as DCIR (AEOI Zone), Lahore has been assigned additional charge of Deputy Director, Directorate of International Tax Operations, Lahore.

08. Khurshid Alam (IRS/BS-18) is posted as DCIR (AEOI Zone), Islamabad has been assigned additional charge of Deputy Director, Directorate of International Tax Operations, Islamabad.

09.Yaser Hussain Bhutto (IRS/BS-18) is posted as DCIR (AEOI Zone), Karachi has been assigned additional charge of Deputy Director, Directorate of International Tax Operations, Karachi.

10. Imran Mehmood (IRS/BS-18) is posted as DCIR (AEOI Zone), Karachi has been assigned additional charge of Deputy Director, Directorate of International Tax Operations, Karachi.

11. Raja Israr (IRS/BS-17) is posted as ACIR (AEOI Zone), Karachi has been assigned additional charge of Assistant Director, Directorate of International Tax Operations, Karachi.

12. Zia Ahmad Butt (IRS/BS-17) is posted as ACIR (AEOI Zone), Islamabad has been assigned additional charge of Assistant Director, Directorate of International Tax Operations, Islamabad.

November 7, 2019