KARACHI: The sales of locally assembled / manufactured cars witnessed a growth of 58 per cent in September 2021 due to lower tax rates and rise in auto financing.
(more…)Author: Faisal Shahnawaz
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PKR at fresh low of Rs171.04 against dollar
KARACHI: The Pak Rupee (PKR) reached to a new historic low of Rs 171.04 against the dollar.on Tuesday in the interbank foreign exchange market.
Previously, the rupee recorded an all-time low at Rs170.96 against the dollar on October 06, 2021.
Currency experts said that the dollar demand for import payment was continuously depreciating the rupee value.
The import bill surged by 65 per cent to $18.63 billion during first quarter (July – September) of the current fiscal year as compared with $11.28 billion in the corresponding quarter of the last fiscal year.
It is important to note that the State Bank of Pakistan (SBP) during past couple of weeks took various measures to discourage outflow of dollars. However, these measures are unable to stop depreciation in rupee value.
The local currency remained under pressure since start of the current fiscal year. The local unit has lost Rs13.50 or 8.57 per cent against the dollar from Rs157.54 on June 30, 2021 to Rs171.04 to date.
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KCCI flays restoration of IR officers bank freezing powers
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has criticized the decision to restore powers of Inland Revenue (IR) officers to recover due and taxes through bank account attachment without prior information.
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SBP issues customers exchange rates for October 12
Karachi, October 12, 2021: The State Bank of Pakistan (SBP) has issued the official exchange rates for Tuesday, October 12, 2021.
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PM directs incentives to attract more Chinese investment
ISLAMABAD: Prime Minister Imran Khan on Monday directed authorities to intensify efforts to attract more investment from China, underscoring the importance of industrialization and economic growth for Pakistan’s future.
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ECC approves cash reward for promotion of IT exports
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved cash reward for incentivizing IT exports and to encourage documentation of exporters/exports.
Federal Minister for Finance and Revenue, Shaukat Tarin, presided over the meeting of the ECC of the Cabinet, held at the Finance Division.
The ECC approved the allocation of Rs 4 billion to PSEB for disbursement of cash reward incentive in order to incentivize IT exports and to encourage documentation of exporters/exports.
The cash reward incentive shall be provided for the IT and IT-enabled services exporters promoting export proceeds through banking channels via State Bank of Pakistan (SBP) allocated banking codes.
The ECC considered and approved a summary presented by the Ministry of Information Technology and Telecommunication regarding allocation of Rs. 2 billion as a single line budget for Pakistan Software Export Board (PSEB), an apex Government body, mandated to strengthen and promote the IT sector exports of Pakistan.
Federal Minister for Industries and Production Khusro Bakhtiar, Federal Minister for Energy Hammad Azhar, Federal Minister for Railways Azam Khan Swati, Minister of State for Information Farrukh Habib, Advisor to PM on Commerce Abdul Razak Dawood, Federal Secretaries and other senior officers participated in the meeting.
Secretary, Ministry of Industries and Production presented a summary regarding provision of gas to Pak Arab and Fauji Fertlizer Bin Qasim Limited (FFBQL) to review demand for urea fertilizer during the Rabi season 2021-22.
After detailed discussion, the ECC approved maximum provision of gas to Pak Arab (58MMCFD) and FFBQL (63MMCFD) to ensure that estimated demand for urea fertilizer is met through domestic production. The decision will stabilize prices of urea fertilizer and ensure its smooth supply throughout the country during Rabi season 2021-22.
Lastly, Ministry of Commerce presented a Textile and Apparel Policy, FY 2020-25. After due deliberation, the ECC constituted a sub-committee comprising of representatives of Ministry of Commerce, Finance Division, Ministry of Industries and Production, Power and Petroleum Divisions, FBR and State Bank of Pakistan to review and present an updated policy before ECC in a couple of weeks.
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IR officers to freeze bank accounts for tax recovery
ISLAMABAD: The officers of Inland Revenue (FBR) have been authorized to access bank accounts of taxpayers for recovery of outstanding duty and taxes.
In an official memo issued on Monday, the Federal Board of Revenue (FBR) has restored the powers of Commissioners IR to exercise their powers under Income Tax Ordinance, 2001 and Sales Tax Act, 1990 regarding recovery of tax dues through attachment of bank accounts.
A non-bureaucrat FBR chairman Syed Shabbar Zaidi on May 10, 2019 through an official notice barred the tax authorities for attachment of bank accounts prior information to taxpayers.
“No bank accounts attachment unless the taxpayer’s CEO/Principal Officer / owner is informed at least 24 hours prior to attachment and the Chairman FBR’s approval is obtained.”
However, the latest official note stated that in order to implement the law in its true spirit and to re-vest the power vested in the institution of the Commissioners viz-a-viz action under Section 140 of the Income Tax Ordinance, 2001, the instruction referred supra (the previous one) are hereby withdrawn ab-initio.
Syed Shabbar Zaidi headed the organization from May 10, 2019 to January 06, 2020. Zaidi lamented the decision through his tweet.
“I am personally sorry to hear the withdrawal of the first instruction issued when I joined as Chairman FBR. No freezing of bank account without intimation & approval from Chairman FBR. Due to this there was a major relief to taxpayers. I urge Prime Minister, Finance Minister & Chairman FBR to reinstate.”
When I was working in an organization where 99.99 per cent staff is interested in power then one man can only be effective when stakeholders support. It was not so, he added.
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Tax ordinance empowers FBR to make rules
Section 237 of Income Tax Ordinance, 2001 has explained the tax ordinance empowered the Federal Board of Revenue (FBR) to make rules.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 237 of Income Tax Ordinance, 2001:
237. Power to make rules.—(1) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this Ordinance.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:–
(a) the manner in, and procedure by, which the income, profits and gains chargeable to tax and the tax payable thereon under this Ordinance shall be determined in the case of –
(i) income derived partly from agriculture and partly from other business; or
(ii) non-resident persons;
(ab) ascertainment or determination of any income or class of income to be included in the total income of a taxpayer and any deduction from such income;
(b) fees and other charges to be paid in respect of any matter referred to in this Ordinance;
(c) anything which is to be or may be prescribed under this Ordinance;
(d) the procedure for furnishing returns and other documents as required under this Ordinance, including on computer media or through electronic medium or for issuance of orders or notices, or levy of default surcharge or penalty through electronic medium;
(da) the procedure for approval of a non-profit organization;
(e) contain provisions of a saving or transitional nature consequent upon the making of this Ordinance; and
(f) penalties for the contravention of the rules made under this Ordinance.
(3) The power to make rules conferred by this section shall be, except on the first occasion of the exercise thereof, subject to the condition of previous publication.
(4) Where rules made under this section –
(a) adversely affect a person;
(b) are of a transitional nature; and
(c) are made within twelve months after commencement of this Ordinance,
these may provide that they shall take effect from the date on which this Ordinance comes into force or a later date.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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KIBOR rates on October 11, 2021
KARACHI: State Bank of Pakistan (SBP) on Monday issued the following Karachi Interbank Offered Rates (KIBOR) on October 11, 2021.
Tenor BID OFFER 1 – Week 7.21 7.71 2 – Week 7.25 7.75 1 – Month 7.29 7.79 3 – Month 7.71 7.96 6 – Month 8.06 8.31 9 – Month 8.36 8.86 1 – Year 8.61 9.11 -
SBP issues customers exchange rates for October 11
Karachi, October 11, 2021: The State Bank of Pakistan (SBP) has released the official exchange rates for Monday, October 11, 2021.
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