Author: Mrs. Anjum Shahnawaz

FBR nominates 22 customs officers BS-18 for mandatory training course

ISLAMABAD: Federal Board of Revenue (FBR) on Friday nominated 22 officers of BS-18 Pakistan Customs Service (PCS) for training course, which is mandatory for promotion to next scale.

The FBR nominated the officers for 29th Mid Career Management Course (MCMC) that is commencing from February 03, 2020 to May 08, 2020 at National Institute of Management (NIM), Lahore, Karachi, Peshawar and Quetta.

The FBR directed all officers nominated to complete their performance evaluation reports (PERs) up to June 30, 2019 and submit their latest annual medical examination report to FBR by November 11, 2019. The FBR warned that in case any officer fails to do so next in order of seniority will be nominated/communicated to Establishment Division.

The training course is important because it is mandatory for promotion. If an officer is selected for mandatory training, declines to proceed on training for two consecutive training course, he/she would forfeit the right to be considered for promotion, provided that the Prime Minister may dispense with this provision (in any case) in public interest.

Following is the list of PCS/BS-18 officers for 29th MCMC:

01. Tauqeer Ahmed Dar, Deputy Collector, Model Customs Collectorate (MCC) Preventive, Lahore.

02. Muhammad Ali Asad Khan, Deputy Collector, Office of the Chief Collector Customs (Central), Lahore.

03. Tayyab Bukhari, Deputy Collector, MCC Appraisement, Lahore.

04. Asma Bashir, Deputy Collector, MCC AIIA Lahore.

05. Khaidun Ul Haq, Deputy Collector, MCC Gilgit-Baltistan.

06. Syed Babar Ali Shah, Deputy Collector, MCC Sialkot.

07. Fazil Shakoor, Deputy Director, Directorate of Intelligence and Investigation, FBR, Quetta.

08. Muhammad Faisal, Deputy Director, Directorate of Reforms and Automation (Customs), Karachi.

09. Zehra Tahir Naqvi, Deputy Collector, MCC Exports, Custom House, Karachi.

10. Shoukat Hayat, Deputy Director, Directorate General of Transit Trade, Karachi.

11. Shams-ur-Rehman, Deputy Collector, Model Customs Collectorate of Appraisement, Quetta.

12. Falik Shair, Deputy Collector, MCC Gwadar.

13. Ammar Ahmad Mir, Deputy Director, Directorate General of Training and Research (Customs), Karachi.

14. Yawar Nawaz, Deputy Collector, MCC Preventive, Peshawar.

15. Nausheen Riaz Khan, Deputy Director, Directorate of Risk Management, Karachi.

16. Mahwish Shah, Deputy Director, Directorate of Post Clearance Audit, Karachi.

17. Amna Naeem, Deputy Collector, MCC Preventive, Karachi.

18. Shah Faisal, Deputy Collector, MCC Appraisement, Quetta.

19. Abdul Mueed, Deputy Collector, Collectorate of Customs (Adjudication), Faisalabad.

20. Muhammad Rehan Akram, Deputy Collector, MCC Appraisement, Lahore.

21. Palwasha Syed, Deputy Collector, Collectorate of Customs (Adjudication), Lahore.

22. Syed Kareem Adil, Deputy Collector, MCC Hyderabad.

October 25, 2019
List of transactions where 100 percent higher withholding tax not to apply

KARACHI: Federal Board of Revenue (FBR) said that various transactions will not be liable to 100 percent higher withholding tax under Tenth Schedule of Income Tax Ordinance, 2001.

The FBR imposed 100 percent higher withholding tax from July 01, 2019 on those persons not appearing on Active Taxpayers List (ATL).

According to the Tenth Schedule of the Ordinance the provisions of this Schedule would not apply on tax collectible or deductible in case of the following sections:-

(a) Salary: tax deducted under section 149

(b) Payments to non-residents: tax deducted under section 152 other than sub-section (1), (1AA), (2), (2A)(b) and (2A)(c) of section 152

(c) Exports: tax collected or deducted under section 154

(d) Income from Property: tax deducted under section 155;

(e) Withdrawal of Pension Fund: tax deducted under section 156B;

(f) Cash Withdrawal from bank: tax deducted under section 231A;

(g) Advance Tax on transactions in bank: tax deducted under section 231AA;

(h)Collection of tax by NCCPL: tax deducted under section 233AA;

(i) Electricity Consumption: tax deducted under section 235;

(j) Domestic Electricity Consumption: tax deducted under section 235A;

(k) Tax on steel melters and composite units: tax collected under section 235B;

(l) Telephone and internet users: tax collected under section 236;

(m) Advance tax on purchase of air ticket: tax collected under section 236B;

(n) Advance tax on functions and gatherings: tax collected under section 236D;

(o) Advance tax on cable operators and other electronic media: tax collected under section 236F;

(p) Collection of advance tax by educational institutions: tax collected under section 236I;

(q) Advance tax on dealers, commission agents and arhatis etc.: tax collected under section 236J;

(r) Advance tax on purchase of international air ticket: tax collected under section 236L;

(s) Advance tax on banking transactions otherwise than through cash: tax collected under section 236P;

(t) Payment to residents for use of machinery and equipment: tax collected under section 236Q;

(u) Collection of advance tax on education related expenses remitted abroad: tax collected under section 236R;

(v) Advance tax on insurance premium: tax collected under section 236U;

(w) Advance tax on extraction of minerals: tax collected under section 236V;

(x) Advance tax on tobacco: tax collected under section 236X.

October 25, 2019
Customs intelligence recovers huge quantity of liquor from diplomatic consignments

KARACHI: Directorate of Customs Intelligence and Investigation, Karachi has recovered huge quantity of liquor from consignments brought in Pakistan under the garb of diplomatic goods.

In an official note, the customs intelligence on Thursday said that it had recovered 480 bottles of foreign whisky from consignment declared to contain food stuff imported by Embassy of Lebanon, Islamabad.

It said that pursuant to credible information regarding smuggling of liquor in the garb of diplomatic goods, the directorate blocked a number of consignments in March 2019 imported by the Embassy of Indonesia, Syria, Algeria and Lebanon after clearance from the relevant Model Customs Collectorate.

The directorate’s headquarters has been requested to approach the ministry of affairs for nominating its representative for conducting joint examination.

The ministry through a letter dated May 22, 2019 only nominated its representative for joint examination of Indonesian Embassy consignment imported on March 16, 2019.

It resulted in recovery of 480 whisky ‘Black Label’ which did not contain any food stuff at all.

The headquarter was once again requested on October 10, 2019 to approach the ministry of foreign affairs to sent representatives of respective embassies during the examination on October 22, 2019 as considerable time has lapsed and the matter cannot be left pending indefinitely.

The consignment imported by Embassy of Lebanon, Islamabad dated March 16, 2019 was blocked by the Directorate on Information of comprising contraband goods.

The consignment was said to contain food stuff. However, examination conducted on October 22, 2019 at BOML Terminal, West Wharf, Karachi resulted in recovery of 480 bottles of blended Scotch Whisky (Johny Walker Black Label) in one wooden box valuing Rs4.32 million.

It did not contain any food stuff at all. Accordingly, the consignment being liable to confiscation has been seized and further proceedings under way.

October 24, 2019
Pakistan’s forex reserves increased by $149.7 million

KARACHI: The total liquid foreign exchange reserves have increased by $149.70 million to $15.142 billion by week ended October 11, 2016 as compared with $14.992 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

The reserves held by the central bank increased $56.10 million to $7.813 billion by week ended October 11, 2019 as compared with $7.757 billion.

The reserves held by other commercial banks increased by $93.6 million to $7.329 billion as compared with $7.235 billion a week ago.

October 24, 2019
SBP facilitates overseas Pakistanis in biometric verification

KARACHI: State Bank of Pakistan (SBP) has facilitated overseas Pakistanis in their biometric verification for operating bank accounts.

In a statement on Thursday, the SBP said that realizing difficulties being faced by overseas Pakistan in operating their bank accounts due to non-biometric verification of their accounts, State Bank of Pakistan has issued detailed instructions on the alternate arrangement to facilitate their biometric verification.

It may be mentioned here that as per alternate arrangement, overseas Pakistanis may approach their respective banks through email/surface mail and provide identity documents like valid Passport, Visa, CNIC and NICOP (National Identity Card for Overseas Pakistanis) as an alternative arrangement for biometric verification for operating their bank accounts as usual.

The arrangement has been made in line with State Bank’s continuous monitoring of the progress of the banking industry with respect to biometric verification; and it has been reiterated to banks for extending their fullest cooperation to their overseas customers.

October 24, 2019
Stock market gains 323 points on investors’ confidence

KARACHI: The stock market gained 323 points on Thursday as investors confident on ease of interest rate in upcoming policy announcement.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,72 points as against 33,440 points showing an increase of 323 points.

Analysts at Arif Habib Limited said that today’s activity at the bourse was more of a déjà vu.

Similar performance was witnessed yesterday, however, on the whole the 800 points loss that market saw on Monday (on the back of FATF news) was largely recovered in the past 2 sessions.

Cement, Steel, OMCs, E&P and Banks contributed to the positive sentiments, although Cement sector braced poorer than expected financial results of MLCF.

Overall, the benchmark index saw an increase of 423 points, ending the session +323 points (unadjusted). Investors seemingly had firm view on decline in interest rates, expected to be announced in November by SBP, and the same was evident from yesterday’s t-bill auction that saw further inversion of yield curve in short tenor instruments.

Technology sector led the volumes with 24.6 million shares, followed by Engineering (16.1 million) and Cement (14.5 million).

Among scrips, WTL realized 17.2 million shares in trading volumes, followed by DSL (5.4 million) and LOTCHEM (5.1 million).

Sectors contributing to the performance include E&P (+115 points), Banks (+78 points), Fertilizer (+38 points), O&GMCs (+26 points) and Food (+19 points).

Volumes increased from 116.9 million shares to 121.2 million shares (+4 percent DoD). Average traded value also increased by 11 percent to reach US$ 25.5 million from US$ 23 million.

Stocks that contributed significantly to the volumes include WTL, DSL, LOTCHEM, TRG and FCCL, which formed 31 percent of total volumes.

Stocks that contributed positively include OGDC (+41 points), POL (+32 points), PPL (+27 points), ENGRO (+24 points) and MCB (+20 points).

Stocks that contributed negatively include MTL (-6 points), FATIMA (-4 points), LUCK (-3 points), MLCF (-3 points), and FML (-3 points).

October 24, 2019
Rupee ends unchanged in thin trading

KARACHI – The Pakistani rupee remained stable against the US dollar on Thursday, closing unchanged in a session marked by subdued trading activity in the interbank market.
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October 24, 2019
Pakistan among top 10 improvers in World Bank’s ease of doing business

ISLAMABAD: The World Bank on Thursday said that the enactment of six regulatory reforms has landed Pakistan among the world’s top 10 business climate improvers.

A study of the World Bank Group’s Doing Business 2020 said that due to a concerted improvement in business regulation, Pakistan climbed 28 places and rose to a rank of 108 in the global ease of Doing Business rankings this year from 136 the previous year.

“This rise is significant and made possible by collective and coordinated actions of Federal Government and Provincial Governments of Sindh and Punjab over the past year,” said Illango Patchamuthu, World Bank Country Director for Pakistan. “The accelerated reform agenda has many noteworthy features to improve quality of regulations, reduce time and streamline processes. This momentum needs to be sustained in the coming years for Pakistan to continue to make progress.”

The reforms that helped the country improve its ranking are significant. The country has made starting a business easier by expanding the functionalities of the online one-stop-shop. This reduced the number of procedures required to set up a business from 10 to five and improved the economy’s score for starting a business. Additionally, in Lahore, the Labor Department registration fee was abolished.

Authorities made the approval process for obtaining a construction permit easier and faster in both Karachi and Lahore. In Karachi, the process was also made safer by ensuring that building quality inspections take place regularly. Pakistan also eased the process for paying taxes by introducing online payment modules for value added taxes and corporate income taxes. The government also lowered the corporate income tax rate for the 2018 fiscal year. This reform reduced the number of payments from 47 to 34 and the total number of hours required to comply with tax requirements per year from 294 to 283.

Pakistan also made it easier to get electricity and register property. Karachi and Lahore enforced service delivery time frames and launched an online portal for new applications. In addition, the country increased the transparency of electricity tariff changes. Karachi made property registration faster by making it easier to execute and register a deed at the Office of the Sub-Registrar. Lahore increased the transparency of the land administration system by publishing its fee schedule online. Lastly, in the area of trading across borders, Pakistan enhanced the integration of various agencies in the Web-Based One Customs (WEBOC) electronic system and ensured coordination of joint physical inspections at the port.

Pakistan continues to perform best on the protecting minority investors indicator, earning the maximum possible points on the extent of ownership and control index, which measures governance safeguards protecting shareholders from undue board control. Globally, Pakistan is in the top 30 economies on this measure.

Going forward, Pakistan has other opportunities for improvement in the areas measured by Doing Business. For example, on enforcing contracts, the country ranks 156th. It takes 1,071 days to resolve a commercial dispute in Pakistan, almost twice the average among OCED high-income economies.

October 24, 2019
Mari Petroleum sets up subsidiary at Dubai Free Zone

KARACHI: Mari Petroleum Company Limited (MPCL) has announced establishment of a wholly owned subsidiary company at Dubai Free Zone for expansion of operations.

In a notice to Pakistan Stock Exchange (PSX) on Wednesday, the company said that its board of directors had approved establishment of a wholly owned subsidiary company of MPCL in Dubai Free Zone Area and investment of one million US dollars in the proposed subsidiary company as MPCL’s equity contribution.

The board is of the view that formation of a foreign subsidiary company is imperative for MPCL for expanding its operations across other countries in oil, gas and allied services as well as other sectors.

Further, activities related to foreign investment and arrangement of foreign financing can be handled more proactively through a company registered abroad.

The company further said that transfer/investment of funds out of the country would be subject to approval by the State Bank of Pakistan.

October 24, 2019
Withholding tax collection on profit from bank deposits surges by 194pc

KARACHI: The collection of withholding tax from profit on bank deposits registered unprecedented growth of 194 percent during first quarter of first fiscal year as the tax rates increased by 100 percent for persons not on the Active Taxpayers List (ATL).

Sources in Regional Tax Office (RTO) –II Karachi said that the withholding tax collection under Section 151(1)(b) of Income Tax Ordinance, 2001 increased to Rs14.56 billion during first quarter (July – September) of fiscal year 2019/2020 as compared with Rs4.95 billion in the corresponding period of the last fiscal year.

The sources explained that under Section 151(1)(b) withholding tax is collected on profit on debt paid by banking companies or financial institutions on account or deposit maintained.

Every banking company is required to collect 10 percent of the gross yield/profit paid up to Rs500,000 or 15 percent of the gross yield / profit paid exceeding amount Rs500,000 at the time the profit on debt is credited to the account of the recipient or is actually paid, whichever is earlier.

The sources said that it is mandatory for the banks to collect double the amount of withholding tax from those persons receiving profit on debt but not on the Active Taxpayers List (ATL).

The government through Finance Act, 2019 introduced 10th Schedule to the Income Tax Ordinance, 2001 to enhance the rate of withholding tax by 100 percent on certain transactions.

The measure has been taken to force persons making large transactions and paying withholding tax on such transactions but remained outside the tax net.

The sources said that after the implementation of the 10th Schedule the pace of return filing for Tax Year 2018 increased in order to avoid paying 100 percent higher rate of withholding tax.

According to ATL updated October 21, 2019 the number of return filers were increased to 2.64 million for tax year 2018 as compared with 1.84 million returns received for tax year 2017.

October 24, 2019