Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Informers to get 20% reward money in recovery against tax evasion

    Informers to get 20% reward money in recovery against tax evasion

    KARACHI: A person, who provides definite information of tax evasion and subsequent recovery, will get 20 percent of the recovered amount as reward.

    Officials of Federal Board of Revenue (FBR) told that the tax laws had defined the payment of reward.

    The amount of reward, in cases of exhibiting meritorious conduct to recovery of tax evaded or refund unlawfully paid, would be apportioned.

    The officials said that where an informer is involved in recovery of evaded tax then the informer will get 20 percent of the total recovery. The breakup of the reward amount would be 30 percent for employees involved in recovery. Further 10 percent will be given to supervising officers who write performance evaluation reports (PERs)

    The supporting staff of officers will get 15 percent, while 25 percent will be disbursed amongst Inland Revenue Welfare Fund.

    The officials said that where no informer is involved, the apportionment of the reward would be:

    Employees will get 50 percent; supervising officers who write performance evaluation reports (PERs) at 10 percent; supporting staff will get 15 percent; and Inland Revenue Welfare Fund will get 25 percent.

    The officials said that the amount of reward relating to officers and officials in the case where more than one individual is involved shall be distributed in proportion of their basic pay.

  • Bank deposits by wholesale trade sharply increase by 240%

    Bank deposits by wholesale trade sharply increase by 240%

    KARACHI: The bank deposits by wholesale trade sharply increased by 240 percent in November 2019 owing to higher interest rate and abolishing withholding tax rate on cash withdrawal, market sources said on Wednesday.

    According to data released by State Bank of Pakistan (SBP) on December 17, 2019, the bank deposits by wholesale trade increased to Rs511.45 billion by end of November 2019 as compared with Rs150.24 billion a month ago.

    The market sources said that the sharp increase in deposits by wholesale trade was mainly due to prevailing higher interest rate.

    The SBP in its monetary policy announcement on November 22, 2019 kept the policy rate unchanged at 13.25 percent.

    The sources said that the improvement in economic indicators also helped the confidence building of investors.

    This is also evident in the collection of withholding tax by Federal Board of Revenue (FBR) on profit on debt. The collection of tax from bank deposits registered increase by 204 percent to Rs21.6 billion during July – November 2019/2020 as compared with Rs7.1 billion in the corresponding period of the last fiscal year.

    The market sources also attributed to rise in bank deposits by wholesale trade to abolishing withholding tax on cash withdrawal by the government.

    The withholding tax at 0.3 percent which was applicable on the income tax return filers on withdrawal of cash above Rs50,000 in a day was abolished through Finance Supplementary (Second Amendment) Act, 2019.

    The sources said that majority of people making financial transactions had filed their annual returns to avoid paying withholding taxes or avail reduced rate of withholding tax.

    The filing of income tax returns has increased to record level of 2.71 million for tax year 2018.

    According to the SBP data the bank deposits of retail trade however slightly fell to Rs234.6 billion by end of November 2019 as compared with Rs241.25 billion in October 2019.

    The overall deposits under the head of wholesale and retail trade, repair of motor vehicles and motorcycles increased to Rs775.6 billion in November 2019 as compared with Rs419.6 billion in October 2019.

  • Cars import falls by 81pc during July – November

    Cars import falls by 81pc during July – November

    ISLAMABAD: The import of imported cars has sharply fell by 81 percent during July – November of 2019/2020 owing to restriction imposed by the government for customs clearance through payment in foreign exchange.

    The country spent $26.1 million for import of completely built units (CBU) cars during first five months of current fiscal year as compared with $135 million in the corresponding months of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on December 17, 2019.

    As per law the commercial import of used or old cars is not allowed. However, in order to facilitate Pakistanis living abroad the government has allowed incentives to bring cars into Pakistan.

    According to Federal Board of Revenue (FBR), Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under these schemes: Personal Baggage; Gift Scheme; and Transfer of Residence.

    Cars not older than three years and other vehicles not older than five years can be imported under these schemes, the FBR said.

    In the past these schemes were grossly misused and bulk of imported cars brought into the country.

    However, the ministry of commerce in February 2019 amended Import Policy Order, 2016 and made it mandatory for clearance of cars through foreign exchange, which should be certified by banks.

    Since then the clearance of the cars has come to a standstill. Customs authorities said that a large number of imported cars were at the port but importer had failed to make payment as per procedure prescribed by the ministry of commerce.

    The import of cars started declining in the last fiscal year. The import of CBU cars fell by 51.33 percent to $222 million in fiscal year 2018/2019 as compared with $456 million in the preceding fiscal year.

    The overall import of CBU vehicles during first quarter of current fiscal year fell 74 percent. The import of heavy vehicles including buses and trucks has declined by 42 percent. While import of CBU motorcycles fell by 75 percent.

  • Auction of 30 vehicles mostly Model 2016-2018 announced for December 20

    Auction of 30 vehicles mostly Model 2016-2018 announced for December 20

    KARACHI: The Model Customs Collectorate (MCC) Appraisement – West, Karachi, has officially announced a public auction of used vehicles, scheduled to take place on December 20, 2019, at Al-Hamd International Container Terminal (AICT).

    (more…)
  • Mobile phones import through legal channels surges by over 100pc on mandatory verification

    Mobile phones import through legal channels surges by over 100pc on mandatory verification

    ISLAMABAD: The import of mobile phones has increased by over 100 percent due to mandatory verification of International Mobile Equipment Identity (IMEI).

    (more…)
  • Lawyers, doctors require to keep payment receipt record for tax purpose

    Lawyers, doctors require to keep payment receipt record for tax purpose

    In a move to enhance transparency and accountability, the Federal Board of Revenue (FBR) has implemented stringent regulations requiring professionals such as doctors, lawyers, and accountants to maintain meticulous records of payments received from clients or patients for income tax purposes.

    (more…)
  • Sarhan appointed as Emirates Vice President for Pakistan

    Sarhan appointed as Emirates Vice President for Pakistan

    Karachi /Dubai: Emirates Airline has appointed Mohammad Sarhan as its new Vice President for Pakistan.

    This is part of the airline’s management rotation and positions it to better serve customer needs and respond with agility to market dynamics, a statement said on Tuesday.

    Mohammad Sarhan, Vice President Pakistan said: “Pakistan and Emirates have a special bond that spans 34 years, when our first-ever flight flew from Dubai to Karachi on 25 October 1985.

    Today, we serve five cities in Pakistan with 67 weekly flights. Pakistan continues to be one of our most important markets and we’re committed to offering our customers convenience, comfort, innovative products and personalised services.

    “I’ve always admired the different facets of Pakistan, its people and its culture, and I’m inspired by the country’s massive potential and its growing tourism industry. From the fascinating history and rich culture, to the sumptuous cuisine and breath-taking natural landscape – Pakistan has so much to offer! We will continue to promote Pakistan as a tourist destination to travellers globally and encourage them to visit and experience this great country.

    “Our growing base of Pakistani travellers are seeking quality travel experiences worldwide, and we aim to give our customers world-class travel services and value for money to 159 destinations across the globe. I’m really looking forward to my role, working with our local teams, trade partners and strategic associates, further growing our presence in the market, and delighting our customers.”

    Previously, Sarhan was Emirates’ Country Manager for Thailand, Myanmar and Cambodia. He began his career at Emirates in 2006 as a Commercial Operations Officer, before being promoted as the Commercial Manager. Between 2009 and 2014, he gained experience on three continents as Country Manager for Ivory Coast, Greece and Vietnam. In these years, Sarhan managed commercial operations and teams, enhanced the customer experience, looked for opportunities to better serve the local community, and worked with internal stakeholders across Emirates’ wide span and network.

    Sarhan brings with him extensive experience in the aviation industry, which spans over 13 years. He has a track record of successfully elevating the airline’s operations in challenging markets.

  • SECP, universities sign MoU to promote financial literacy

    SECP, universities sign MoU to promote financial literacy

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has signed Memorandums of Understanding (MOU) with five leading universities to promote financial literacy among youths.

    SECP’s Commissioner Investor Education Department, Shaukat Hussain inked the MoUs, said a statement on Tuesday.

    While universities were represented by their respective Vice Chancellors, Registrars and Directors.

    These HEC recognized universities included University of Balochistan, Mehran University of Engineering and Technology Jamshoro, University of Wah, Forman Christian University Lahore and University of Malakand. Including these five MOUs, SECP’s total number of active MOUs with various institutions under its investor education program ‘Jamapunji’ reached 51, giving it leverage of an ever increasing network of partners for spreading investor awareness.

    Talking at the occasion, Shaukat Hussain emphasized on the importance of collaborative efforts between the regulator and the educational sector to enable a more aware and responsible financial ecosystem in Pakistan.

    He mentioned SECP’s efforts leading to 28 places jump in the World Bank’s Ease of Doing Business Index, making Pakistan among the top 10 countries with the most improved business climate.

    He lauded each of these universities for their established Offices of Research, Innovation and Commercialization (ORICs), which encourage and facilitate aspiring student entrepreneurs.

    The Commissioner apprised participants of SECP’s dedicated Startup Portal and ongoing collaboration with various National Incubation Centers across Pakistan.

    He informed participants that SECP is member of HEC’s National Curriculum Revision Committees (NCRC) and providing due input in improving ‘ Economics’ and ‘ Business Administration’ tertiary level curricula.

    He was of the view that a curricula with components of capital markets, insurance sector and basics of financial literacy would help in producing astute entrepreneurs.

    The representatives appreciated SECP’s efforts for cultivating financial literacy.

    Under the MoU, SECP will be holding regular seminars at universities on a continuing basis to impart knowledge to students on the basics of savings, financial planning, investing and capital markets.

    Visiting university delegates committed to extending their full support through their vast network of colleges and campuses, radio channels, faculty resources, infrastructure and premises, information exchange etc., to make meaningful impact hand in hand with SECP.

  • SBP issues instructions on foreign currency loan by private sector

    SBP issues instructions on foreign currency loan by private sector

    KARACHI: The State Bank of Pakistan (SBP) on Tuesday issued instruction to banks and exchange companies related to foreign currency loan by private sector.

    A circular issued by the central bank said that the chapter 19 of Foreign Exchange Manual 2019 contained that it is required to register all foreign currency (FCY) loans, above USD one (1) million, with Exchange Policy Department, State Bank of Pakistan.

    In this regard, the SBP decided that all FCY loans will be registered by the banks and exchange companies irrespective of the amount. ADs will be responsible to ensure that FCY loans registered by them, are in compliance with all the parameters given against each type of FCY loan, in Chapter 19 of FEM 2019. However, prior permission of SBP will continue to be required for raising following FCY Loans:

    Private sector FCY loans mobilized through securitized instruments, issuance of bonds and financing under Islamic arrangements.

    Long term FCY borrowing by ADs.

    FCY borrowing by other Financial Institutions i.e. NBFIs, DFIs, PSOs, PSPs, Leasing Companies, House Building Finance Companies & Insurance Companies.

    The SBP said that authorized dealers shall also ensure to have independent assessment of each FCY loan proposal/ transaction from money laundering/ terrorism financing risk and foreign exchange risk perspective, by their Compliance or Risk Management Department, prior to its registration. For this purpose, ADs shall conduct appropriate due diligence of the proposal including particulars of lender and shall determine the ultimate beneficial ownership, if it is not a Financial Institution.

    In case, the lending entity is controlled by residents, ADs shall ensure that their investment abroad is in compliance with foreign exchange regulations. Further, ADs shall conduct annual focused Internal Audit of FCY Loan Registration function.

    Further, the minimum tenor of loans raised as PSBA for working capital under Para 7(iii) and FSBA for liquidity management purposes under Para 9(iii) of Chapter 19 of FEM 2019 has been reduced to one month.

    For reporting these foreign private loans (FPL) data on Data Acquisition Portal (DAP), all ADs are required to get Loan Registration Number (LRN) of each loan from Statistics and Data Warehouse Department by 5th of the following month by providing information along with repayment schedule.

    All other terms, conditions and instructions in the matter shall remain unchanged. Accordingly, Chapter 19 of the FEM 2019 has been revised and is attached herewith. ADs are advised to bring the above contents to the notice of all their constituents and ensure meticulous compliance.

  • Foreign investment witnesses massive growth to $2bn in five months

    Foreign investment witnesses massive growth to $2bn in five months

    KARACHI: The inflows of foreign investment registered unprecedented growth to $2 billion during first five months (July – November) of 2019/2020 owing to significant investment in debt securities.

    (more…)