The dollar advanced against the local currency for the second straight trading session. Currency experts said that the rupee made recovery during the past week after Saudi pledge to assist Pakistan in balance of payment.
However, the dollar for the large import payment has once again started deterioration in the rupee value.
The import bill registered a growth of 65.15 per cent to $25.06 billion during July – October 2021 as compared with $15.17 billion in the same period of the last fiscal year, according to the PBS.
ISLAMABAD: The automaton of Utility Stores Corporation (USC) will help the government provide targeted subsidy to beneficiaries under Ehsaas Program.
Federal Minister for Industries and Production Makhdum Khusro Bakhtyar presided over the meeting on the progress of digitalization and automation program of Utility Store Corporation under the Digital Pakistan Initiative.
The meeting was attended by Secretary Industries and Production, MD USC, senior officials of the Ministry and representative of PTCL & NRTC.
MD USC briefed the Chair on digitalization program of corporation: encompassing it’s business process under ERP (enterprise resource planning); including supply chain, warehousing, financials, deployment of POS, human resources, and targeted subsidy which will be consummated by end this month.
He also informed the Minister that USC had completed the automation of utility stores in Islamabad region, shifting 20% of total sales on automation which would be inaugurated in next week.
While reviewing the progress of USC’s digitalization, the Minister highlighted that the government would provide targeted subsidies at the Utility Stores for the Prime Minister Ehsaas program beneficiaries by linking their Ehsaas Cards/national identity cards with the sale points while making these stores a targeted subsidy tool.
The Minister appreciated the team of USC and remarked that this project would be the largest digitalization program of any public sector oriented company.
He informed that upon completion, Prime Minister of Pakistan would inaugurate the automation program of USC, as Digital Pakistan’s vision has been very close to his heart.
The Minister also lauded the ongoing cooperation of PTCL and NRTC to work hand-in-hand with USC to carry out the automation program.
In a statement on Monday, FPCCI President Mian Nasser Hyatt Maggo expressed shock over the interest rate of up to 9 per cent under SBP’ SME Asaan Finance Scheme (SAAF).
The SMEs were appreciative of the announcement of collateral-free SAAF Scheme; but, the interest rate of 9 per cent makes it unaffordable, unproductive and unsupportive for SMEs, he added.
Maggo said that it is a welcome step that SBP has selected eight banks to get financing under SAAF Scheme from SBP; however, it makes no economic and commercial sense to allow these eight banks to charge up to 8 per cent in addition to 1 per cent of SBP’s lending fee to banks.
The FPCCI chief demanded that SAAF scheme should not have a total interest rate over 3 per cent, which will make it at par with TERF to make it affordable for SMEs, i.e. 1 per cent for SBP financing and 2 per cent for banks’ margin.
He said that in the post-pandemic scenario, nowhere in the world SMEs can afford to get capital at 9 per cent and pay it back without getting bankrupted. Maggo also noted, with concern, that SBP itself sets maximum interest rate under TERF Scheme at 3 per cent for larger enterprises and business groups; and, for SMEs, it has taken a discriminatory and unsupportive stance.
Iftikhar Ghani Vohra, Convener of FPCCI’s Central Standing on SMEs, said that based on the feedback from across Pakistan, he can say that SMEs are not happy with the exorbitant interest rate; as 9 per cent will make the SAAF Scheme unaffordable for them.
Vohra added that his committee had a detailed meeting with the SBP officials in the mid-September; and, they categorically conveyed their concerns to the officials. However, FPCCI’s concerns have fallen on deaf ears and no change in interest rate has been announced.
Maggo said that he disagrees with the assertion by SBP that all stakeholders have been taken onboard on SAAF Scheme; as FPPCI’s proposal has not been taken into account. It is pertinent to note that FPCCI is the apex representative body of all the SMEs, chambers & associations of Pakistan and; therefore, the biggest stakeholder in the policies affecting SMEs, he added.
KARACHI: Arif Habib Limited (AHL), Pakistan’s leading Brokerage and Investment Banking Firm, makes history by winning the awards of “Best Brokerage House”, “Best Corporate Finance House”, “Best Economic Research House” and “Best Research Analyst” by CFA Society Pakistan in their 18th Excellence Awards for 2020.
The occasion was graced by Shaukat Tarin, Advisor to the Prime Minister on Finance and Revenue.
These annual awards are considered capital markets’ benchmarks and are based on a confidential poll, surveying respondents comprising the buy-side asset managers and investment professionals from Pakistan’s financial sector including Banks, Asset Management Companies, DFIs and other financial Institutions.
AHL has achieved the distinction of winning all the three House awards, Brokerage/Corporate Finance/Economic Research, in any award ceremony organised by the CFA Society of Pakistan. AHL has received the Best Corporate Finance House award for seven consecutive years.
Tahir Abbas, Head of Research at AHL, was recognized as the Best Research Analyst for the third time.
During the ceremony, Shahid Ali Habib, CEO of Arif Habib Limited said, “We are humbled by the appreciation in CFA Society Pakistan Awards ceremony. We Alhamdulillah have made history by winning all the House awards, which has never happened in previous events. All the credit goes to our hardworking team and our clients who have put confidence in us.”
Part III, Sixth Schedule of Income Tax Ordinance, 2001 has explained the procedure for the grant of approval to gratuity funds for treatment of income tax. by Commissioner Inland Revenue (IR).
1. Approval of Gratuity Funds. — (1) The Commissioner may accord approval to any gratuity fund which, in his opinion, complies with the requirements of rule 2 and may, at any time, withdraw such approval if, in his opinion, the circumstances of the fund cease to warrant the continuance of the approval.
(2) An order according approval or withdrawing approval shall take effect from such date as the Commissioner may fix.
(3) The Commissioner shall neither refuse nor withdraw approval to any gratuity fund unless he has given the trustees of that fund a reasonable opportunity of being heard.
2. Conditions for approval. — In order that a gratuity fund may receive and retain approval, it shall satisfy the conditions hereinafter specified and any other conditions which the Board may, by rules, prescribe –
(a) the fund shall be a fund established under an irrevocable trust in connection with trade or undertaking carried on in Pakistan, and not less than ninety per cent of the employees shall be employed in Pakistan;
(b) the fund shall have for its sole purpose the provision of a gratuity to employees in the trade or undertaking on their retirement at or after a specified age or on their becoming incapacitated prior to such retirement, or on termination of their employment after a minimum period of service specified in the regulations of the fund or to the widows, children or dependents of such employees on their death;
(c) the employer in the trade or undertaking shall be a contributor to the fund; and
(d) all benefits granted by the fund shall be payable only in Pakistan.
3. Application for approval. — (1) An application for approval of a gratuity fund shall be made in writing by the trustees of the fund to the Commissioner by whom the employer is assessable and shall be accompanied by copy of the instrument under which the fund is established and by two copies of the rules and, where the fund has been in existence during any year or years prior to the financial year in which the application for approval is made, also two copies of the accounts of the fund relating to such prior year or years (not being more than three years immediately preceding year in which the said application is made) for which such accounts have been made up, but the Commissioner may require such further information to be supplied as he thinks proper.
(2) If any alteration in the rules, constitution, objects or conditions of the fund is made at any time after the date of the application for approval, the trustees of the fund shall forthwith communicate such alteration to the Commissioner mentioned in sub-rule (1), and in default of such communication, any approval given shall, unless the Commissioner otherwise orders, be deemed to have been withdrawn from the date on which the alteration took effect.
4. Gratuity deemed to be salary. —Where any gratuity is paid to an employee during his life-time, the gratuity shall be treated as salary paid to the employee for the purposes of this Ordinance.
5. Liability of trustees on cessation of approval. —If a gratuity fund for any reason ceases to be an approved gratuity fund, the trustees of the fund shall nevertheless remain liable to tax on any gratuity paid to any employee.
6. Contributions by employer, when deemed to be his income. — Where any contributions by an employer (including the interest thereon, if any,) are repaid to the employer, the amount so repaid shall be deemed for the purposes of tax to be the income of the employer of the income year in which they are so repaid.
7. Particulars to be furnished in respect of gratuity funds. — The trustees of an approved gratuity fund and any employer who contributes to an approved gratuity fund shall, when required by notice from the Commissioner, furnish, within such period not being less than twenty-one days from the date of service of the notice as may be specified in the notice, such return, statement, particulars or information, as the Commissioner may require.
8. Provisions of the Part to prevail against regulations of the fund. —Where there is a repugnance between any rule of an approved gratuity fund and any provision of this Part or of the rules made thereunder the said rule shall, to the extent of repugnance, be of no effect and the Commissioner may, at any time, require that such repugnance shall be removed from the rules of the fund.
9. Appeals. — (1) An employer objecting to an order of the Commissioner refusing to accord approval to a gratuity fund or an order withdrawing such approval may appeal, within sixty days of the receipt of such order, to the Board.
(2) The Board may admit an appeal after the expiration of the period specified in sub-rule (1), if it is satisfied that the appellant was prevented by sufficient cause from presenting it within that period.
(3) The appeal shall be in such form and shall be verified in such manner and shall be accompanied by such fee as may be prescribed.
10. Provisions relating to rules. —(1) In addition to any power conferred in this Part, the Board may make rules –
(a) prescribing the statements and other information to be submitted along with an application for approval;
(b) limiting the ordinary annual and other contributions of an employer to the fund;
(c) regulating the investment or deposit of the moneys of an approved gratuity fund;
(d) providing for the assessment by way of penalty of any consideration received by an employee for an assignment of, or the creation of a charge upon, his beneficial interest in an approved gratuity fund;
(e) providing for withdrawal of the approval in the case of a fund which ceases to satisfy the requirements of this Part or the rules made thereunder; and
(f) generally, to carry out the purposes of this Part and to secure such further control over the approval of gratuity funds and the administration of gratuity funds as it may deem requisite.
11. Definitions.—In this Part, unless the context otherwise requires, “contribution”, “employee”, “employer”, “regulations of a fund” and “salary” have in relation to gratuity funds, the meaning assigned to those expressions in rule 14 of Part I in relation to provident funds.
(Disclaimer: The text of 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.)
1. Approval of superannuation funds.— (1) The Commissioner may accord approval to any superannuation fund or any part of a superannuation fund which, in his opinion, complies with the requirements of rule 2, and may, at any time withdraw such approval if, in his opinion, the circumstances of the fund or the part, as the case may be, cease to warrant the continuance of the approval.
(2) An order according approval or withdrawing approval shall take effect from such date as the Commissioner may fix.
(3) The Commissioner shall neither refuse nor withdraw approval to any superannuation fund or any part of a superannuation fund unless he has given the trustees of that fund a reasonable opportunity of being heard.
2. Conditions for approval. — In order that a superannuation fund may receive and retain approval, it shall satisfy the conditions hereinafter specified and any other conditions which the 2[Board] may, by rules prescribe –
(a) the fund shall be a fund established under an irrevocable trust, in connection with a trade or undertaking carried on in Pakistan, and not less than ninety per cent of the employees shall be employed in Pakistan;
(b) the fund shall have for its sole purpose the provision of annuities for employees in the trade or undertaking on their retirement at or after a specified age or on their becoming incapacitated prior to such retirement, or for widows, children or dependants of persons who are or have been such employees on the death of these persons;
(c) the employer in the trade or undertaking shall be a contributor to the fund; and
(d) all annuities, pensions and other benefits granted from the fund shall be payable only in Pakistan.
3. Application for approval.— (1) An application for approval of a superannuation fund, or part of a superannuation fund, shall be made in writing by the trustees of the fund to the Commissioner by whom the employer is assessable, and shall be accompanied by a copy of the instrument under which the fund is established and by two copies of the regulations and, where the fund has been in existence during any year or years prior to the financial year in which the application for approval is made, also two copies of the accounts of the funds relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up, but the Commissioner may require such further information to be supplied as he thinks proper.
(2) If any alternation in the regulations, constitutions, objects or conditions of the fund is made at any time after the date of the application for approval, the trustees of the fund shall forthwith communicate such alteration to the Commissioner mentioned in sub-rule (1), and, in default of such communication, any approval given shall, unless the Commissioner otherwise directs, be deemed to have been withdrawn from the date on which the alteration took effect.
4. Contributions by employer, when deemed to be his income. — Where any contributions by an employer (including the interest thereon, if any), are repaid to the employer, the amount so repaid shall be deemed for the purpose of tax to be the income of the employer of the income year in which it is so repaid.
5. Deduction of tax on contributions paid to an employee. — Where any contributions made by an employer (including interest on contributions, if any), are repaid to an employee during his life-time in circumstances other than those referred to in clause (25) of Part I of the Second Schedule, tax on the amount so repaid shall be deducted by the trustees 1[at the rate applicable to the year of withdrawal] and shall be paid by the trustees to the credit of the Federal Government within such time and in such manner as may be prescribed.
6. Deduction from pay of and contributions on behalf of employees to be included in a statement under section 165. — Where an employer deducts from the emoluments paid to an employee or pays on his behalf any contributions of that employee to an approved superannuation fund, he shall include all such deductions or payments in a statement which he is required to furnish under section 165.
7. Liability of trustees on cessation of approval. — If a fund, or a part of a fund, for any reason ceases to be an approved superannuation fund, the trustees of the fund shall nevertheless remain liable to tax on any sum paid on account of returned contributions (including interest on contributions, if any), in so far as the sum so paid is in respect of contributions made before the fund or part of the fund, as the case may be, ceased to be an approved superannuation fund under the provisions of this Part.
8. Particulars to be furnished in respect of superannuation fund. — The trustees of an approved superannuation fund and any employer who contributes to an approved superannuation fund shall, when required by notice from the Commissioner, within such period (not being less than twenty-one days from the date 1[of service] of the notice), as may be specified in the notice, furnish such return, statement, particulars or information, as the Commissioner may require.
9. Provisions of the Part to prevail against regulations of the fund. — Where there is a repugnance between any regulation of an approved superannuation fund and any provision of this Part or of the rules made thereunder the regulation shall, to the extent of the repugnance, be of no effect ; and the Commissioner may, at any time, require that such repugnance shall be removed from the regulations of the fund.
10. Appeals. —(1) An employer objecting to an order of the Commissioner refusing to accord approval to a superannuation fund or an order withdrawing such approval may appeal, within sixty days of the 2[service] of such order, to the 3[Board].
(2) The 4[Board] may admit an appeal after the expiration of the period specified in sub-rule (1), if it is satisfied that the appellant was prevented by sufficient cause from presenting it within that period.
(3) The appeal shall be in such form and shall be verified in such manner and shall be accompanied by such fee as may be prescribed.
11. Provisions relating to rules. —(1) In addition to any power conferred by this Part, the 5[Board] may make rules –
(a) prescribing the statements and other information to be submitted along with an application for approval;
(b) prescribing the returns, statements, particulars, or information which the Commissioner may require from the trustees of an approved superannuation fund or from the employer;
(c) limiting the ordinary annual contribution and any other contributions to an approved superannuation fund by an employer;
(d) regulating the investment or deposit of the moneys of any approved superannuation fund;
(e) providing for the assessment by way of penalty of any consideration received by an employee for an assignment of, or creation of a charge upon, his beneficial interest in an approved superannuation fund;
(f) providing for the withdrawal of approval in the case of a fund which ceases to satisfy the requirements of this Part or of the rules made thereunder; and
(g) generally, to carry out the purposes of this Part and to secure such further control over the approval of superannuation funds and the administration of approved superannuation funds as it may deem requisite.
12. Definitions.— In this Part, unless the context otherwise requires “contributions”, “employee’, “employer”, “regulations of a fund” and “salary” have, in relation to superannuation funds, the meanings assigned to those expressions in rule 14 of Part I in relation to provident funds.
(Disclaimer: The text of 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.)
Rules for tax computation of the profits and gains from the exploration and extraction of mineral deposits (other than petroleum) under Part II, Fifth Schedule ofIncome Tax Ordinance, 2001.
RULES FOR THE COMPUTATION OF THE PROFITS AND GAINS FROM THE EXPLORATION AND EXTRACTION OF MINERAL DEPOSITS (OTHER THAN PETROLEUM)
Exploration and Extraction of Mineral Deposits a Separate Business
1. Where any person carries on, or is treated as carrying on, any business which consists of or includes the exploration or extraction of mineral deposits of a wasting nature (other than petroleum) in Pakistan, such business or part thereof, as the case may be, shall be, for the purposes of this Ordinance or the repealed Ordinance, treated as a separate undertaking (hereinafter referred to as “such undertaking”) and the profits and gains of such undertaking shall be computed separately from the income, profits and gains from any other business, if any, carried on by the person.
Computation of Profits
2. (1) Subject to the provisions of this Part, the profits and gains of such undertaking shall be computed in the manner applicable to income, profits and gains chargeable under the head “Income from Business”.
(2) All expenditure on prospecting and exploration incurred by such undertaking up to the date of commercial production shall be, to the extent to which it cannot be set off against any other income of such undertaking, treated as a loss.
(3) The loss referred to in sub-rule (2) shall be carried forward and set off against the income of such undertaking after the commencement of commercial production, so, however, that if it cannot be wholly set off against the income of such undertaking of the tax year in which the commercial production had commenced, the portion not so set off shall be carried forward to the following year and so on, but no such loss shall be carried forward for more than ten years beginning with the year in which commercial production commenced.
(4) After the commencement of commercial production, depreciation in respect of machinery and plant for extracting the ore shall be allowed as a deduction from the profits and gains of the tax year in which they are used for the first time in an amount equal to the original cost of such asset and the provisions of section 22 shall apply accordingly.
2A. The provisions of section 4B shall apply to the taxpayers under this Part and taxed at the rates specified in Division IIA of Part I of the First Schedule.
Depletion Allowance
3. (1) In determining the profits and gains of such undertaking for any year an additional allowance (hereinafter referred to as the “depletion allowance”) shall be made equal to twenty per cent of the taxable income of such undertaking (before the deduction of such allowance).
(2) No deduction under sub-rule (1) shall be made unless an amount equal to the depletion allowance is set apart and left as a reserve to be utilised for the development and expansion of such undertaking.
(3) Where a depletion allowance is made in any tax year and subsequently it is utilised for any purpose contrary to the provisions of sub-rule (2), the amount originally allowed under this Ordinance shall be treated as having been wrongly allowed and the Commissioner may, notwithstanding anything contained in the Ordinance, recompute the taxable income of the taxpayer for the relevant tax years and the provisions of section 122 shall apply, so far as may be, thereto, the period of five years specified in the section being reckoned from the end of the tax year in which the amount was so utilised.
Provisions Relating to Rules
5. The Board may make rules providing for any matter connected with, or incidental to, the operations of this Part.
Definitions
6. In this Part, –
(1) “commercial production” means production as determined by the Commissioner; and
(2) “petroleum” has the same meaning as in clause (4) of rule 6 of Part I.
(Disclaimer: The text of 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.)
