Author: Faisal Shahnawaz

  • Dogecoin to Pak Rupee on July 14, 2022

    Dogecoin to Pak Rupee on July 14, 2022

    KARACHI: The exchange rate of Dogecoin (DOGE) in Pak Rupee (PKR) is Rs12.97 on July 14, 2022 at 09:38 AM Pakistan Standard Time (PST), in the open exchange market.

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  • Special tax regime for pharma sector introduced

    Special tax regime for pharma sector introduced

    KARACHI: A special sales tax regime has been introduced for pharmaceutical sector through Finance Act, 2022 by making amendments in Sales Tax Act, 1990.

    As per the special tax regime manufacture or import of substances registered as drugs under the Drugs Act, 1976 shall be subject to 1 per cent sales tax with the condition that such tax shall be final discharge of tax in the supply chain and no input tax shall be allowed to the importer and manufacturer of such goods.

    READ MORE: Defacing sales tax invoice declared as offence

    According to explanation of Finance Act, 2022 released by PwC A. F. Ferguson & Co. prior to the amendments made through the Finance (Supplementary) Act, 2022, the entire pharma sector was exempt from levy of sales tax both at input as well as output stage, except for certain packing materials.

    The aforesaid exemption regime was converted into a zero-rating regime for import and local supplies for finished items of pharma sector, however, sales tax was imposed at standard rate of 17 per cent on purchase / import of Active Pharmaceutical Ingredients (API).

    READ MORE: FBR to collect 3% further tax on supply to inactive taxpayer

    As a result, the pharma sector was allowed to claim sales tax refund on all purchases including APIs and provincial sales tax on services. A faster – pharma system for expeditious processing of refund claims for pharma sector was introduced.

    These amendments were made with the aim to improve documentation of the pharma sector.

    READ MORE: FBR starts online monitoring sales of jewelers

    The special tax regime for Pharma Sector has now been introduced whereby manufacture or import of substances registered as drugs under the Drugs Act, 1976 shall be subject to 1 per cent sales tax with the condition that such tax shall be final discharge of tax in the supply chain and no input tax shall be allowed to the importer and manufacturer of such goods.

    Furthermore, APIs, excluding excipients, for manufacture of drugs registered under the Drugs Act, 1976 or raw materials for the basic manufacture of Active Pharmaceutical Ingredients shall also be subject to 1 per cent sales tax with no input tax adjustment and subject to certification by DRAP and certain procedural conditions.

    READ MORE: Tax concessions to pilots withdrawn

  • Defacing sales tax invoice declared as offence

    Defacing sales tax invoice declared as offence

    KARACHI: Defacing sales tax invoice has been declared as an offence under Sales Tax Act, 1990 as amendment has been made through Finance Act, 2022.

    The defacing of sales tax invoice will attract penalties as well as imprisonment.

    READ MORE: FBR to collect 3% further tax on supply to inactive taxpayer

    According to explanation of amendments made through Finance Act, 2022, issued by PwC A. F. Ferguson, defacing the prescribed invoice number or the barcode or QR code has been introduced as an offence subject to levy of penalty of higher of Rs 500,000 or 200 per cent of the amount of tax involved.

    Upon conviction by a Special Judge, a simple imprisonment for a term which may extend to two years, or with additional fine which may extend to two million rupees, or with both may also be imposed.

    READ MORE: FBR starts online monitoring sales of jewelers

    Any person who abets commissioning of such offence has also been made liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to one year, or with additional fine which may extend to two hundred thousand rupees, or with both.

    Certain penalties were introduced through Tax Laws (Third Amendment) Ordinance, 2021 on failure of Tier-1 retailers to register and integrate business which have now been ratified in the Act.

    READ MORE: Tax concessions to pilots withdrawn

    The Finance Act, 2022 also amended laws related to powers of the FBR regarding initiating criminal proceedings.

    The powers of the FBR to prescribe rules for initiating criminal proceedings against any specified authority for willful or deliberate acts/omissions resulting in personal benefits and undue advantage to authority, person or taxpayer have been withdrawn. Earlier, the FBR was empowered to this effect through Finance Act, 2019.

    READ MORE: Pakistan grants tax exemption to charitable organizations

  • FBR to collect 3% further tax on supply to inactive taxpayer

    FBR to collect 3% further tax on supply to inactive taxpayer

    KARACHI: The Federal Board of Revenue (FBR) will collect three per cent further sales tax on supply made to a person not an active taxpayer.

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  • Twitter moves court against Musk for breaching $44bn deal

    Twitter moves court against Musk for breaching $44bn deal

    Twitter Inc. on Tuesday reportedly filed a case against Elon Musk, the CEO Tesla Inc. for cancelling $44 billion purchase deal.

    The Twitter filed case against Elon Musk in the Delaware Court of Chancery to hold Musk to pay the amount of $44 billion for the deal of Twitter.

    READ MORE: Ufone increases rates amid rising inflation

    The CEO of Tesla, Inc., Elon Musk decides to terminate the $44 billion deal to buy Twitter claiming about the multiple violations in the agreement.

    Elon Musk claimed that the deal of purchasing Twitter was canceled because the Twitter breached the deal by failing to hand over data. He demanded that the number of bots and spam accounts on the platform should be evaluated.

    READ MORE: Jazz invests Rs14.9 billion during first quarter

    The legal experts said that the dispute could result in the involvement of judge forcing Musk to complete the deal or forcing him to pay a $1 billion breakup fee, or other scenarios including a settlement, renegotiation of the purchase price, or even Musk walking away without paying anything.

    In May, Musk said that the deal was “temporarily on hold” as he was waiting for the dates on the number of fake and spam accounts on Twitter.

    READ MORE: FBR proposed to exempt withholding tax on telecom services

    The billionaire businessman had asked for evidence to back the company’s assertion that spam and bot accounts make up less than 5% of its total users.

    In a letter filed with the US Securities and Exchange Commission, Musk’s lawyer said that the Twitter had failed or refused to provide this information.

    According to the letter: “Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”

  • IRC launches rain relief operation in Balochistan

    IRC launches rain relief operation in Balochistan

    ISLAMABAD: International Rescue Committee (IRC) on Wednesday launched a relief operation in Balochistan were the torrential rains have ruined the normal life in the province. Due to flash floods and rain, many people have been killed and around 150,000 population are in the need of humanitarian assistance.

    An emergency has been declared in the provincial metropolitan city followed by relief operations at all levels.

    The assistant commissioner said that the wards and emergency room of Muslim Bagh Civil Hospital were flooded, while rain in the hilly areas of Muslim Bagh damaged more than 100 houses. Most of the access roads to remote areas of Qila Saifullah, Zhob, and Harnai have been affected, hampering rescue operations in several areas.

    READ MORE: Slashing petroleum prices summary to be sent: Miftah

    A Pishin administration official said hundreds of mud-houses were washed away or badly damaged in Malikyar, Don Khanozai and Sheikhmalzai areas of Pishin as floodwater coming from hilly areas of Burshor lashed the area.

    Given the rapidly deteriorating situation, the IRC has initiated response activities in Pishin and Quetta districts. With the financial aid of German Federal Foreign Office, the IRC’s internal funds and support of its on-ground partner, the People’s Primary Healthcare Initiative (PPHI), the IRC has launched a rapid emergency response within 24 hours of the declaration of emergency, which is being implemented in close coordination with the Provincial Disaster Management Authority, Balochsitan.

    CEO of PPHI, Esfandyar Baloch said, “We have so far set up three free medical camps in the flood-affected areas. More than 500 Afghan refugees and host communities have so far availed the services.”

    He further said that under this rapid response, more than 350 food packages and over 250 dignity kits are being distributed among the affected population.

    READ MORE: Gas price hike report baseless: Musadiq Malik

    Muhammad Shareef, IRCs Head of Office, Balochistan, said, “The needs of the target beneficiaries will inevitably be affected by inflation and poverty. The opportunity cost of food items will, in all likability be the healthcare. We understand this dilemma and our efforts are geared towards providing maximum possible relief to those most in need.”

    Shabnam Baloch, IRCs Country Director said, “To minimize the adversity caused by natural disasters, the relevant actors need to plan beyond the immediate response and work closely with geologists, environmentalists, and researchers to examine, assess, and review potential future climate risks to timely alert the decision-makers.”

    She also added that it is equally important to understand that natural calamities further aggravate the vulnerability of women and girls and so, any response or management efforts must be designed keeping their unique protection issues in mind.

    READ MORE: Limited resources affected from overpopulation

    The IRC has also responded to similar emergencies in the past by providing a humanitarian response in terms of food items, non-food items, and basic healthcare camps. The organization is currently also coordinating with the district and provincial disaster management authorities to keep them abreast with the situation and provide relief updates from the target districts.

  • Pakistan equities gain 519 points on IMF deal rumors

    Pakistan equities gain 519 points on IMF deal rumors

    Pakistan’s equity market experienced a significant surge on Wednesday, gaining 519 points on the back of rumors suggesting the finalization of a deal between authorities and the International Monetary Fund (IMF).

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  • SBP issues KIBOR rates – July 13, 2022

    SBP issues KIBOR rates – July 13, 2022

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as on July 13, 2022.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week14.3214.82
    2 – Week14.4914.99
    1 – Month14.8515.35
    3 – Month15.3815.63
    6 – Month15.6215.87
    9 – Month15.6716.17
    1 – Year15.7316.23

    READ MORE: SBP issues KIBOR rates – July 07, 2022

  • SBP’s customer forex rates – July 13, 2022

    SBP’s customer forex rates – July 13, 2022

    KARACHI: The State Bank of Pakistan (SBP) has issued the foreign exchange (forex) rates for customers on July 13, 2022, based on the weighted average rates of commercial banks.

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  • Bitcoin to Pak Rupee on July 13, 2022

    Bitcoin to Pak Rupee on July 13, 2022

    KARACHI: The exchange rate of Bitcoin (BTC) in Pak Rupee (PKR) is Rs4,034,453.39 on July 13, 2022 at 10:24 AM Pakistan Standard Time (PST), in the open exchange market. The rate of Bitcoin has been calculated and compared with the rate Rs4,234,653.56 at closing on July 12, 2022.

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