Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR warns unregistered industrial, commercial electricity consumers of imprisonment

    FBR warns unregistered industrial, commercial electricity consumers of imprisonment

    KARACHI: Federal Board of Revenue (FBR) has issued notices to unregistered commercial and industrial electricity connection holders to file their returns of incomes and sales otherwise from July 01 the tax authorities would initiate legal action that may lead to imprisonment.

    Large Taxpayers Unit (LTU) II Karachi issued notices to electricity connection holders of commercial and industrial, stating: “as per data available with FBR you are an Industrial / commercial consumer of electricity, meaning thereby electricity is being used for business purpose.”

    It is brought to your knowledge that every person engaged in making taxable supplies in Pakistan is liable to be registered as warranted under section 14 of the Sales Tax Act, 1990.

    The data further shows that you have not obtained Sales Tax Registration.

    The FBR in its strive to broaden the tax base, intends to register all those persons who are liable to be registered under Sales Tax Act, 1990 or Federal Excise Act, 2005, or the persons earning taxable income and liable to file return under Income Tax Ordinance, 2001 but who have failed to do so.

    In order to facilitate the taxpayers in declaring their undeclared income, sales, assets, etc. A scheme has been introduced by Govt of Pakistan /Federal Board of Revenue which provides for declaration of such income, sales, assets, etc by 30th June, 2019 at a very concessionary rate.

    “You may avail the benefit of this last opportunity to declare income, sales, assets etc at nominal rates and get registered / file return, if you have not done so,” according to a notice.

    After 30th June, 2019 all those persons who are liable to be registered and pay sales tax/ federal excise duty, or liable to file income tax return, if fail to do so, may compulsorily be registered made to file return and duties and taxes would be recovered along with default surcharge and penalty which may also entail prosecution proceedings leading to imprisonment.

  • Law proposed to end corruption in Pakistan Customs

    Law proposed to end corruption in Pakistan Customs

    KARACHI: The government has decided to take stern action against officials of Pakistan Customs, who are involved in corruption or corrupt practices.

    A new section 156A to the Customs Act, 1969 has been proposed through Finance Bill, 2019 to initiate criminal proceedings against officials involved in accepting bribe or corruption.

    According to EY Ford Rhodes Chartered Accountants Firm said that the Finance Bill 2019 seeks to insert a new Section 156A in the Act whereby the FBR may prescribe rules to initiate criminal proceedings against its officials who willfully and deliberately commits or omits an act which results in personal benefit or undue advantage to the officials or the taxpayer or both.

  • FBR asks jewelers to avail amnesty for undeclared assets

    FBR asks jewelers to avail amnesty for undeclared assets

    KARACHI: Federal Board of Revenue (FBR) has asked jewelers to declare their concealed assets by June 30 otherwise possessing black money or undocumented money will face harsh action.
    The members of gems and jewelers association met senior tax officials at Regional Tax Office (RTO) – II Karachi on Tuesday related to ongoing tax amnesty scheme, sources told PkRevenue.com.
    The tax officials apprised the businessmen to avail the scheme and declare their cash, assets and sales through the asset declaration scheme.
    The members of gems and jewelers have been informed that the FBR had sufficient information about the undocumented gold availability in the market.
    FBR sources said that the authorities had complied data of imported gold and subsequent export of jewelry.
    The sources said that the import of gold was regulated through import policy order 2016 and exporters of jewelry had been allowed the import as per requirements.
    However, it has been observed that this facility was grossly misused and large quantity of gold was being exported / smuggled to India, the sources added.
    The FBR is set to launch mega crackdown against jewelers from next month after the conclusion of the amnesty scheme.

  • Businessmen taken onboard to remove anomalies in Finance Bill 2019

    Businessmen taken onboard to remove anomalies in Finance Bill 2019

    ISLAMABAD: Federal Board of Revenue (FBR) has constituted an anomaly committee comprising members from business community to give their input in removing irritants in the Finance Bill, 2019.

    The FBR issued an office order in this regard on Tuesday to identify and remove the technical and legal anomalies in the Finance Bill 2019. The committee shall be comprised of the following members:

    Muhammad Ali Tabba, Chairman

    Muhammad Javed Ghani, Member Customs – Policy, Co-Chairman.

    Following members are also the part of the committee:

    President FPCCI

    CEO Pakistan Business Council

    Secretary General OICCI

    Chairman APTMA

    President KCCI

    President LCCI

    President KPK Chamber

    President Quetta Chamber

    Ali Habib

    Anjum Nisar, Former President KCCI

    Ziad Bashir

    The committee will review the anomalies identified and submitted; and to advise FBR on removal of anomalies.

    Technical and legal anomalies can be submitted on or before June 21, 2019

  • Trade deficit narrows by 13.62 percent in eleven months

    Trade deficit narrows by 13.62 percent in eleven months

    ISLAMABAD: The trade deficit has narrowed by 13.62 percent in first eleven months owing to measures taken by the government to increase the cost of imported luxury and non-essential goods.

    According to trade data released by Pakistan Bureau of Statistics (PBS) on Tuesday, the trade deficit reduced to $29.2 billion during July – May 2018/2019 as compared with the deficit of $33.81 billion in the corresponding period of the last fiscal year.

    Primary reason for shrinking trade deficit is reduction in import bill. The total imports fell by 8.47 percent to $50.47 billion during first eleven months of current fiscal year as compared with $55.14 billion in the same period of the last fiscal year.

    The government during the last couple of years has taken measures to discourage import of luxury and non-essential goods by imposing regulatory duty.

    However, exports were remained flat at $21.26 billion during July – May 2018/2019 as compared with $21.33 billion in the corresponding period of the last fiscal year.

    It is pertinent to mention here that the government had also extended many facilitations to jack up the exports but despite enjoying relaxations on many heads the Pakistani exporters failed to capture world market.

  • Business community wants secrecy of information under assets declaration scheme

    Business community wants secrecy of information under assets declaration scheme

    KARACHI: Business community has urged Federal Board of Revenue (FBR) to keep information secret under assets declaration scheme in order to ensure confidence of declarants.

    Saleem Parekh, Chairman Site Association of Trade and Industry, urged that all the information disclosed must be kept in secret and should not be shared with any other department. “The scheme will only be successful if no questions are asked with regard to the transactions,” he said at an awareness seminar on Asset Declaration Scheme organized at the association.

    On the instructions of Chairman FBR Shabbar Zaidi, FBR officials have started awareness campaign in Karachi. In this regard Maqsood Jehangir, Commissioner IR, Large Tax Paying Units (LTU) and Kashif Hafeez (Addl. CIR, Zone 6, CRTO, Karachi) visited SITE Association of Industry which was attended by Executive Committee and large number of industrialists.

    Kashif Hafeez gave detailed presentation about Asset Declaration Ordinance 2019 wherein he highlighted the incentives announced by the government that anyone under this scheme can declare their un-declared assets (immovable and moveable) and in this regard all FBR officials would help the business community.

    Commissioner informed that under this scheme all information would be kept secret to safeguard the concerns of business community.

    He informed that government has received detailed financial information from 26 countries and now it is impossible to hide moveable and immoveable assets. Therefore FBR is encouraging all stakeholders to declare their un-disclosed assets obtained before June 30,Bu 2019.

    Saleem Parekh appreciated the presentation and insight knowledge of Commissioner. He said that Commissioner has responded each and every question of the industrialists with clarity which shows his authoritativeness on the subject.

    He also appreciated the efforts of government to document the economy and extended his full support on behalf of members of SITE Association of Industry in this regard.

  • KSE-100 index down 487 points on delay in fund activation

    KSE-100 index down 487 points on delay in fund activation

    KARACHI: The stock market ended down by 487 points on Tuesday owing to delay concerns over activation of state enterprise and market opportunity fund.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,682 points as against 35,169 points showing a decline of 487 points.

    Analysts at Arif Habib Limited said that the market repeated yesterday’s episode of decline in index, which was primarily caused by concerns over delay in activation of State Enterprise & Market Opportunity Funds, MSCI and FTSE Reviews.

    Activity was slow and investors maintained cautious stance.

    Selling pressure was mainly observed in Banks and E&P Sector, which spread to Cement sector by the end of session.

    Cement sector saw price gains on the back of another increase of Rs15-20 in price / bag, which couldn’t sustain selling pressure. MLCF, which topped the volumes chart, ended 5 percent down.

    Overall, Cement sector led the volumes with 28M shares, followed by Technology stocks (mainly TRG).

    Sectors contributing to the performance include Banks (-79 points), Fertilizer (-76 points), E&P (-65 points), Cement (-59 points), O&GMCs (-55 points).

    Volumes declined further from 128mn shares to 104mn shares (-19 percent DoD). Average traded value also declined by 19 percent to reach US$ 257mn as against US$ 31.6mn.

    Stocks that contributed significantly to the volumes include MLCF, TRG, PIBTL, KEL and EPCL, which formed 35 percent of total volumes.

    Stocks that contributed positively include PAKT (+6 points), OGDC (+5 points), GATM (+3 points), AICL (+2 points) and AGP (+2 points). Stocks that contributed negatively include MCB (-31 points), PPL (-28 points), MARI (-26 points), NESTLE (-23 points) and FFC (-23 points).

  • Rupee recovers 15 paisas on SBP governor briefing

    Rupee recovers 15 paisas on SBP governor briefing

    KARACHI: The Pak Rupee recovered 15 paisas against dollar on Tuesday day after the press conference of the governor of State Bank of Pakistan (SBP) for clarifying many issues about the economy.

    The rupee ended Rs156.81 to the dollar from previous day’s closing of Rs156.96 in interbank foreign exchange market.

    The foreign exchange market was initiated in the range of Rs156.60 and Rs156.90. The market witnessed day high of Rs156.85 and low of Rs156.40 and closed Rs156.81.

    A day earlier SBP governor Reza Baqir conducted a press briefing and clarified many issues pertaining to the economy, which boosted the confidence in the market.

    The exchange rate in the open market was remained unchanged.

    The buying and selling of the dollar was recorded at Rs155.50/Rs156.50 same previous day’s closing in cash ready market.

  • Import Policy Order 2016 amended: SRO 604 issued for solar panels, equipments

    Import Policy Order 2016 amended: SRO 604 issued for solar panels, equipments

    ISLAMABAD: The ministry of commerce on Monday amended Import Policy Order, 2016 to describe conditions for import of solar energy panels and related equipments into Pakistan, according to a notification made available to PkRevenue.com.

    The ministry issued SRO 604(I)/2019 to amend the import policy order. The SRO amended the Appendix-B related to procedural requirement of following items with Pakistan Customs Tariff (PCT) code and description of commodity:

    8541.4000: Solar Photovoltaic cells whether or not assembled in modules or made up into panels (Crystalline Type/ Thin Film) Solar PV Test equipment for system performance testing.

    8504.4090: Inverter for use with solar PV system. Common for all PV inverters (off-gird/Hybrid/on-gird.

    9032.8990: Charge Controllers for use solar PV systems Balance of system components for Photovoltaic systems.

    8501.3110: Off-gird/Standalone solar photovoltaic generators consisting of panels of photocells combined with other apparatus / Solar PV Homes System / Solar Kits.

    8501.3210: Off-Grid/ standalone solar photovoltaic generators consisting of panels of photocells combined with other apparatus / Solar PV Homes Systems/ Solar Kits

    8503.0010: Parts suitable for use solely or principally with the machines of heading 8501.3110 and 8501.3210

    8503.0020: Parts suitable for use solely or principally with the machines of heading 8501.3110 and 8501.3210

    8503.0090: Pats suitable for use solely or principally with the machines of heading 8501.3110 and 8501.3210 – others.

    8538.9090: Junction Box with covers for solar panels.

    8544.6090: Insulated (including enameled or anodized electric wire, cables (including con-axial cable) and other insulated conductors, whether or not fitted with connectors for use in photovoltaic systems.

    8413.7090: Solar Photovoltaic pumping system for liquids.

    8419.1900: Solar Water Heaters with accessories

    7321.1190: Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, rings, plate non-electric domestic appliances and parts thereof running on solar.

    For the import of above solar system equipments the ministry has defined the conditions, included:

    Importable subject to compliance with the quality and safety standards approved by Pakistan Standards and Quality Control Authority (PSQCA) as given in Appendix N:

    i. Provided that the test report shall be issued by accredited laboratory in the country of origin or exporting country for the scope of testing/ calibration, in accordance with the requirements of ISO/IEC 17025, General requirements for the competence of testing and calibration laboratories.

    ii. Provided further that the certificate of conformance (CoC) shall be issued by accredited product certification body in the country of origin of exporting country for the type of certification in accordance with the requirements of ISO/IEC 17065, Conformity assessment – Requirements for bodies certifying products and services.

    iii. Provided also further that the PSI report shall be issued by accredited inspection body in the country of origin or exporting country for the type of inspections, in accordance with the requirements of ISO/IEC 17020, General criteria for the operation of various types of bodies performing inspection.

    iv. Provided further that the accreditation of the above mentioned conformity assessment bodies shall be issued by the Accredited Body (AB), operating in accordance with ISO/IEC 17011, General requirements for accreditation bodies accrediting conformity assessment bodies.

    The SRO also amended Appendix H related to the list of pre-shipment inspection companies. According to the amendment:

    g. The pre-shipment inspection companies as approved by Pakistan National Accreditation Council (PNAC) for the inspection of solar equipment (including but not limited to solar PV system, off-girds/standalone solar PV systems, solar PV kits, solar PV panels, solar PV cells, inverters, charge controllers, balance of system components for PV systems, low-voltage switchgear and control gear assemblies, power converters for use in PV power systems, insulated cables for use in PV systems, solar pumping systems for liquids, solar water heaters with accessories, solar stoves/ cookers/ ranges, etc. and parts thereof.

    The SRO also amended the Appendix N related to list of compulsory items to meet Pakistan Standards at import stage.

    Following items have been added to the list with HS code and subject:

    8541.4000:

    Solar PV Module IEC: 61730-1

    Solar PV Module – Crystalline Type IEC: 61730-2, IEC:61215-1

    Solar PV Module – Thin Film (CdTe Based) IEC: 61215

    Solar PV Module – Thin Film (amorphous silicon based), IEC: 61730-1, IEC: 61730-2

    Solar PV Module – Thin Film (In, GA based) IEC: 61730-1, IEC: 61730-2

    PV Test Equipment for system performance testing

    Photovoltaic Concentrator (CPV)

    Solar PV standalone systems (including AC or DC off-grid systems)

    8504.4090:

    Inverter for use with solar PV system. Common for all PV inverters (off-grid/hybrid/on-gird)

    Inverters for use with solar PV on-grid system only

    Inverter testing equipment

    Charge controllers for use with solar PV system

    Balance of system components for photovoltaic systems

    Low voltage switchgear and control gear assemblies

    Power converters for use in photovoltaic power assemblies

    Power converters for use in photovoltaic power system

    8501.3110/8501.3210:

    Off-grid/standalone solar PV Home Systems/ Solar Kits

    8503.0010/8503.0020/8503.0090:

    Electronic equipment and parts suitable for use in solar PV power installations

    8538.9090: Junction Box with covers for solar panels

    8544.6090: Electric cables for photovoltaic systems

    8413.7090: Solar PV Pumping System Design qualification and performance measurements

    8419.1900:

    Solar Water Heaters, Solar heading – Domestic water heating systems

    Solar water heater for dwellings based on JIS 4111

    Solar Storage tank based on JIS 4113

    Solar water heaters – elastomeric materials for absorbers, connecting pipes and fittings

    Thermal performance of glazed liquid heating collectors including pressure drop.

    Thermal solar system and components: factor made systems.

    Thermal solar system and components: collectors.

    Solar energy – Water heating systems

    7321.1190:

    Solar cooker – Box Type: requirements

    Solar cooker – Box Type: components