Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • 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.

  • 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.