Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Untaxed money, assets will find no hiding: CCIR RTO-II

    Untaxed money, assets will find no hiding: CCIR RTO-II

    KARACHI: People will find no place to conceal their untaxed money from next month as Federal Board of Revenue (FBR) planned a comprehensive plan to bring all taxable income into tax net, Badaruddin Ahmad Qureshi, Chief Commissioner Inland Revenue (CCIR), Regional Tax Office (RTO)-II, Karachi at a press conference on Thursday.

    He said that FBR had gathered information of people having taxable income through various sources including transactions of immovable properties, motor vehicle registrations, banking transactions, air travel, education fee etc.

    He further said that the information of Pakistanis, having offshore investments on which tax was not paid, had also received.

    Further, the Benami law, which was passed by the Parliament in 2017 and the FBR issued rules in February 2019, is also in vogue.

    So in this scenario a person will not able to hide his illegal money or assets in future, the chief commissioner added.

    Qureshi said that the present Asset Declaration Scheme was introduced in this background as the government wanted to give last chance to people having illegal money and assets to declare at nominal tax rates before launching stern action.

    The CCIR said that the declaration scheme would end by June 30 and there would be no further extension.

    “This is the last chance. People should avail this opportunity. The FBR will launch drive against tax evaders from July 01,” he added.

    He said that the RTO-II Karachi had also collected information from various sources and one of those were details of luxury motor vehicles.

    “There are 13,000 motor vehicles of 2400CC engine capacity in the city and their owners are not on the tax roll,” the chief commissioner said, adding that those persons would be served notices from July 01, 2019 and tax authorities would compel them to file their return and pay duty and taxes besides declaring their assets.

    To a question about the progress of amnesty scheme, he said that the response was slow but historically people avail opportunity on the last dates, he said and hoped large number of declaration would be received.

  • Foreign exchange reserves decline to $14.64 billion

    Foreign exchange reserves decline to $14.64 billion

    KARACHI: The foreign exchange reserves of the country have declined by $188 million to $14.639 billion by week ended June 14, 2019 as compared with $14.826 billion by June 03, 2019, State Bank of Pakistan (SBP) said on Thursday.

    The official reserves of the central bank declined by $203 million to $7.604 billion by week ended June 14, 2019 as compared with $7.807 billion as of June 03, 2019.

    The SBP said that the official reserves had been declined due to external debt servicing and other official payments.

    The foreign exchange reserves held by commercial banks increased by $15 million to $7.034 billion as compared with previous level of $7.02 billion.

  • Prime Minister assures business community of considering sales tax zero rating

    Prime Minister assures business community of considering sales tax zero rating

    KARACHI: Prime Minister Imran Khan has assured business community of considering restoration of sales tax zero rating for export sector.

    A delegation of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) met Prime Minister Imran Khan on Thursday in Islamabad to discuss anomalies in the Finance Bill 2019.

    On FPCCI demand of restoration of SRO 1125(I)/2011 allowing five export oriented export sectors at zero rate, the prime minister assured to consider it sympathetically, said a statement issued by the FPCCI.

    The FPCCI delegation was led by S.M. Muneer, leader of the business community and Former Chief Executive TDAP and Former President, FPCCI and consisting of Aqil Karim Dhedi; Engr. Daroo Khan Achakzai, President, FPCCI and Zubair F. Tufail, Convener of the FPCCI Budget Advisory Council – held a detailed meeting with the Prime Minister Imran Khan and Abdul Hafeez Shaikh, Advisor to the PM on Finance which lasted for 2 hours and discussed / briefed them about the hardships of the business community emanated from some harsh measures of the Finance Bill, 2019 that would give serious blow to trade and industry, especially export sector in the wake of exorbitant policy rate of 12.25 percent coupled with the massive devaluation of Pak-Rupee versus dollar in the last few months withdrawal of zero rated regime from export industrial sectors etc.

    The FPCCI delegation particularly emphasized and discussed ten major demands out of which eight proposals have been accepted by the Prime Minister, the major one such as doing away with raid on any premises; reduction in tax rates for service sector; routing taxation and business related policy through Federal Government/Cabinet instead of FBR, as directed by the Supreme Court; lack of personal interaction and minimal possibility of abuse of discretionary powers by the tax officials; conduction of audit once in a three years etc.

    Moreover the issues of retailers, wholesalers and real estates were also discussed in details.

  • KSE-100 gains 340 points on improved sentiments

    KSE-100 gains 340 points on improved sentiments

    KARACHI: The stock market gained 340 points on Thursday on improved sentiments.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,996 points as against 34,656 points showing an increase of 340 points.

    Analysts at Arif Habib Limited said that market moved up today after sustaining losses for the past three sessions. E&P sector took cue from rising crude prices and were further helped by Iran’s taking down of US drone.

    Besides the positivity in E&P sector, Cement stocks also increased on the back of recent price hikes in cement price / bag. Total volumes hit around 163 million shares, however, most of it came from Summit Bank (19 million), WTL (17 million), JSCL (10 million) and PAEL (10 million).

    Technology sector led the volumes table with 29 million shares, followed by Banks (24 million) and Cement (22 million).

    Sectors contributing to the performance include Fertilizer (+69 points), Banks (+62 points), E&P (+44 points), Cement (+44 points) and Autos (+25 points).

    Volumes increased significantly from 99.4 million shares to 163 million shares (+64 percent DoD). Average traded value also increased by 31 percent to reach US$ 28.8 million as against US$ 21.9 million.

    Stocks that contributed significantly to the volumes include SMBL, WTL, JSCL, PAEL and MLCF, which formed 41 percent of total volumes.

    Stocks that contributed positively include FFC (+21 points), EFERT (+21 points), ENGRO (+20 points), POL (+20 points) and HUBC (+19 points). Stocks that contributed negatively include NESTLE (-14 points), PAKT (-11 points), NCPL (-3 points), JLICL (-2 points) and KAPCO (-2 points).

  • Rupee ends flat against dollar

    Rupee ends flat against dollar

    KARACHI: The Pakistani Rupee held steady against the US Dollar on Thursday, closing at Rs156.96 in the interbank foreign exchange market, a marginal change from the previous day’s close of Rs156.97.

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  • List of transactions not to attract 100 percent increased withholding tax

    List of transactions not to attract 100 percent increased withholding tax

    KARACHI: The Finance Bill 2019 has proposed a new schedule related to compliance with 100 percent increased withholding tax rates to persons not appearing on Active Taxpayers List (ATL).

    Deloitte Yousuf Adil, Chartered Accountants in their budget commentary said that the increased withholding tax rates specified under this schedule are inapplicable with respect to following payments and related withholding tax provisions in the case of Person not appearing in the Active Taxpayer list:

    Salary under section 149 of Income Tax Ordinance, 2001

    Export under section 154 of Income Tax Ordinance, 2001

    Income from Property under section 154 of Income Tax Ordinance, 2001

    Withdrawal of Balance under Pension Fund under section 156B of Income Tax Ordinance, 2001

    Cash withdrawal from Bank under section 231A of Income Tax Ordinance, 2001

    Advance Tax on Transactions in Bank under section 231AA of Income Tax Ordinance, 2001

    Collection of Tax by NCCPL under section 233AA of Income Tax Ordinance, 2001

    Electricity Consumption under section 235 of Income Tax Ordinance, 2001

    Domestic Electricity Consumption under section 235A of Income Tax Ordinance, 2001

    Tax on Steel Melters, Re-Rollers etc under section 235B of Income Tax Ordinance, 2001

    Advance Tax on Purchase of Air Tickets under section 236B of Income Tax Ordinance, 2001

    Advance Tax on Functions and Gatherings under section 236D of Income Tax Ordinance, 2001

    Advance Tax on Cable Operators and Other Electronic Media under section 236F of Income Tax Ordinance, 2001

    Collection of Advance Tax by Educational Institutions under section 236I of Income Tax Ordinance, 2001

    Advance Tax on Dealers, Commission Agents and Arthis etc under section 236J of Income Tax Ordinance, 2001

    Advance Tax on Purchase of International Air Tickets under section 236L of Income Tax Ordinance, 2001

    Advance Tax on Banking Transactions otherwise than through Cross Cheque under section 236P of Income Tax Ordinance, 2001

    Payment to residents for use of machinery and equipment under section 236Q of Income Tax Ordinance, 2001

    Collection of advance tax on education related expenses remitted abroad under section 236R of Income Tax Ordinance, 2001

    Advance Tax on Insurance Premium under section 236U of Income Tax Ordinance, 2001

    Advance Tax on extraction of minerals under section 236V of Income Tax Ordinance, 2001

    Advance Tax on Tobacco under section 236X of Income Tax Ordinance, 2001

  • Customs duty concessions allowed on 1650 raw materials

    Customs duty concessions allowed on 1650 raw materials

    KARACHI: The government has allowed customs duty concessions on import of 1650 raw materials through Finance Bill 2019.

    According to Deloitte Yousuf Adil, Chartered Accountants, the Finance Bill proposed to introduce concession of Customs Duty on import of 1650 raw materials/industrial inputs.

    Major items are listed as follows:


     

    PCT codeDescriptionRate
    2710.1911Kerosene0
    2710.1913J.P.40
    2710.1998Spin finish oil0
    2711.1200Propane0
    2711.1300Butanes0
    2711.1400Ethylene, propylene, butylene and butadiene0
    2711.1910L.P.G.0
    2711.1990Other0
    2711.2100Natural gas0
    2711.2900Other0
    2805.1200Calcium0
    2805.1900Other0
    2805.4000Mercury0
    2808.0010Nitric acid0
    2808.0090Sulphonitric acids0
    2809.1000Diphosphorus pentaoxide0
    2809.2010Phosphoric acid0
    2814.1000Anhydrous ammonia0
    2814.2000Ammonia in auqeous solution0
    2817.0000Zinc oxide; zinc peroxide.0
    2818.3000Aluminium hydroxide0
    2819.1000Chromium trioxide0
    2819.9010Chromium oxide0
    2819.9020Chromium hydroxide0
    2936.2100Vitamins A and their derivatives0
    2936.2200Vitamin B1 and its derivatives0
    2936.2300Vitamin B2 and its derivatives0
    2936.2400D- or DL-Pantothenic acid (Vitamin B3 or Vitamin B5) and its derivatives0
    2936.2500Vitamin B6 and its derivatives0
    2936.2600Vitamin B12 and its derivatives0
    2936.2700Vitamin C and its derivatives0
    PCT codeDescriptionRate
    2936.2800Vitamin E and its derivatives0
    2937.1200Insulin and its salts0
    3002.9010Human blood0
    3002.9020Animal blood0
    3105.2000Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus and potassium0
    8427.1000Self- propelled trucks powered by an electric motor0
    8433.6000Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce0
    8436.8000Other machinery0
    8444.0000Machines for extruding, drawing, texturing or cutting man- made textile materials.0
    8530.1000Equipment for railways or tramways0
  • Small traders decide to strongly resist FBR’s raids

    Small traders decide to strongly resist FBR’s raids

    KARACHI: Small traders have decided to resist strongly any move of the Federal Board of Revenue (FBR) to raid markets and business premises.

    An emergent meeting of All Karachi Tajir Ittehad on Wednesday rejected enforcement plan of the tax machinery to raid markets and shopping centers for identifying new taxpayers.

    “The trade community will resist strongly against any raids and all such places will be made ‘no go areas’ for FBR officials,” it is decided at the meeting.

    Atiq Mir, leader of the trade community, said that the tax system of the country cannot be changed overnight.

    He said that the trade community would strongly protest against the corrupt officials of the FBR. “The government is not using tax money for development but it is used for debt repayment and interest payment,” he added.

    Other participants have suggested reforms in the present tax system. The present tax system is promoting corruption and giving further discretionary powers to tax officials would make the tax system more complicated.

    The traders suggested that the tax exempt income should be increased from Rs400,000 to Rs1.5 million. Further the turnover for sales tax registration requirement should be enhanced from Rs5 million to Rs50 million.

    The e-filing of returns should be restricted to limited companies. They said that the random audit was promoting corruption, which should be either abolished or replaced with a better system.

    They suggested that essential items should be exempted from sales tax.

    The traders assured the government that if their demands are accepted then not only revenue would increase but around one million return filers would also come into tax net.

  • Karachi Chamber opposes CNIC condition on supplies

    Karachi Chamber opposes CNIC condition on supplies

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has opposed the requirement of Computerized National Identity Card (CNIC) details to be provided by suppliers of unregistered buyers.

    In a statement issued on Wednesday, the KCCI said that through an amendment to Section 8 (Sub-Sec.1, Clause M) of Sales Tax Act 1990, it is now mandatory for the supplier of goods to provide CNIC number of unregistered buyer of raw materials and finished products, effectively placing the responsibility to identify non-filers on the shoulders of compliant taxpayers.

    It was pointed out that with a dismally narrow tax base of Sales Tax registered persons comprising hardly 35000 in number, it is virtually impossible for the importers, manufacturers and suppliers of goods to find registered buyers or those willing to provide their CNIC details.

    Consequently the inventories of unsold goods with traders, stockists, importers and manufacturers are piling up, blocking their entire working capital as well as the funds borrowed from banks.

    The overnight change has put entire trade and industry in a quandary as to whether or not to continue in business because it is simply not possible to find registered buyers or those willing to provide their CNIC.

    KCCI and other trade bodies are overwhelmed with complaints from traders, importers, manufacturers and dealers to take up this serious issue with Finance Ministry and FBR to find a workable solution immediately to pre-empt a crisis within the trade and industry, he added.

    President KCCI Junaid Makda, therefore, urged the Advisor to Prime Minister on Finance, Revenue & Economic Affairs Dr. Hafeez Shaikh and Chairman Federal Board of Revenue (FBR) Shabbar Zaidi, to review the provision of CNIC, taking into account the ground realities of Pakistan’s economy and withdraw the condition to provide CNIC details of unregistered buyers in Sales Tax Invoices as it is not possible to comply with the condition with immediate effect.

    He further urged the authorities to defer the proposed measure for at least one year so as to facilitate a gradual transition from current procedure and to help release the working capital of entire supply chain which is currently blocked.

    Already the economic activities are very slow and such measures will further aggravate the situation.

    Since the Chairman FBR has formed the anomaly committee which includes representatives of business community, the matter will also be raised with the meetings of committee along with other major anomalies which exist in the Budget 2019-20, he assured.