Author: Faisal Shahnawaz

FBR appoints 49 IR Inspectors to strengthen field force

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday appointed 49 inspectors (BS-16) in Inland Revenue in order to strengthen the field force of tax offices.

The FBR appointed the tax officials on the recommendations of Federal Public Service Commission (FPSC).

The FBR also notified place of posting of those officials.

Following is the list of appointed officials and their place of posting:

1. Muhammad Mehboob-ur-Rehman Sabir, Regional Tax Office, Islamabad.

2. Rana Muhammad Awais, Regional Tax Office-II, Lahore.

3. Salman Munir, Corporate Regional Tax Office, Lahore.

4. Muhammad Kashif Iqbal, Regional Tax Office, Multan.

5. Muhammad Abrar Khan, Regional Tax Office, Gujranwala,

6. Zaighum Waqas, Regional Tax Office, Sargodha.

7. Muhammad Arif, Regional Tax Office, Rawalpindi

8. Waqas Zafar Kurar, Regional Tax Office, Gujranwala.

9. Makwdar Ali, Large Taxpayers Unit, Islamabad.

10. Zeeshan Waheed, Regional Tax Office, Rawalpindi.

11. Mohsin Khan, Regional Tax Office, Faisalabad.

12. Waqas Ali, Regional Tax Office, Islamabad.

13. Kamran Taj, Regional Tax Office-II, Karachi.

14. Yasir Sohu, Regional Tax Office-III, Karachi.

15. Shujah ud din, Regional Tax Office, Sialkot.

16. Nabil ur Rehman, Corporate Regional Tax Office, Lahore.

17. Syed Aijaz Ali Shah, Regional Tax Office-III, Karachi.

18. Muhammad Umair Shaikh, Regional Tax Office-II, Karachi.

19. Muhammad Usman, Regional Tax Office, Abbottabad.

20. Syed Zia ur Rehman, Regional Tax Office, Peshawar.

21. Naveed Ahmad, Regional Tax Office, Peshawar.

22. Suhail Afzal, Regional Tax Offce, Hyderabad.

23. Ahmad Baig, Regional Tax Office, Rawalpindi.

24. Muhammad Kashif, Regional tax Office, Islamabad.

25. Muhammad Irfan, Regional tax Office, Peshawar.

26. Yaqub Shah, Regional Tax Office, Peshawar.

27. Obaid Ullah, Regional Tax Office, Quetta.

28. Muhammad Wasif, Regional Tax Office-II, Karachi.

29. Sohaib Zafar, Regional Tax Office-III, Karachi.

30. Muhammad Ali, Regional tax Office, Quetta.

31. Sovia Mukhtar, Corporate Regional Tax Office, Lahore.

32. Maryam Bibi, Regional Tax Office, Rawalpindi.

33. Maryam Yaqoob, Regional Tax Office, Gujranwala.

34. Nazia Ghazal, Regional Tax Office-II, Lahore.

35. Zareena Bashir, Regional Tax Office, Sahiwal.

36. Makhar, Regional Tax Office, Hyderabad.

37. Shamila Rasool, Regional tax Office-II, Lahore.

38. Zakia Shafi, Regional Tax Office, Gujranwala.

39. Zeenat, Regional Tax Office, Hyderabad.

40. Kiran Shahzadi, Corporate Regional Tax Office, Karachi.

41. Rehan Saleem Ahmed, Regional Tax Office, Sialkot.

42. Raza Inderyas, Regional Tax Office, Sargodha.

43. Raynaud Hayat, Regional Tax Office, Faisalabad.

44. Syeda Tabassum, Regional Tax Office-III, Karachi.

45. Suman, Regional Tax Office-II, Karachi.

46. Subhash, Regional Tax Office-III, Karachi.

47. Sadia Bano, Regional Tax Office, Islamabad.

48. Muhammad Adnan, Regional tax Office, Peshawar.

49. Naveed Yousaf, Large Taxpayers Unit, Islamabad.

The FBR directed the officers to join their duties in the office mentioned against their names by May 20, 2019.

May 2, 2019
Stock market ends down by 237 points on IMF talks

KARACHI: The stock market ended down by 237 points on Thursday as bearish trend prevailed over IMF talks and forthcoming budget.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,548 points as against 36,784 points showing a decline of 237 points.

Analysts at Arif Habib Limited said that the market remained under pressure after an initial increase of 73 points.

During the session, the benchmark index saw erosion of 237 points, mostly caused by the cement sector due to rumors of no agreement amongst the cement manufacturers on sales quota.

On the other hand, tough asks from IMF and expectations of tougher budget by the end of May maintained an overall bearish sentiment.

Total market volumes dropped drastically as well to 68 million shares as against 111 million traded in the previous session. Besides cements, the food sector also traded in the red zone.

Sectors contributing to the performance include Commercial Banks (-54 points), Food & Personal Care (-38 points), Power Generation (-36 points), OGMCs (-26 points), Chemicals (-12 points), Real Estate (+2 points) and Pharma (+2 points).

Volumes decreased from 68 million shares to 111 million shares (-39 percent DoD). Average traded value also decreased by 46 percent to reach US$ 17.5 million as against US$ 32.6 million.

Stocks that contributed significantly to the volumes include UNITY, FFL, MLCF, PIAA and LOTCHEM which formed 45 percent of total volumes.

Stocks that contributed positively include ENGRO (+8 points), PSMC (+6 points), KTML (+6 points), PPL (+5 points), and SPWL (+4 points). Stocks that contributed negatively include NESTLE (-37 points), HUBC (-32 points), HBL (-18 points), PSO (-16 points) and MEBL (-12 points).

May 2, 2019
Rupee gains 10 paisas in interbank

KARACHI: The Pak Rupee has gained 10 paisas against dollar on Thursday in interbank foreign exchange market owing to inflows of remittances and export receipts.

The rupee ended Rs141.29 to the dollar from previous day’s close of Rs141.39 in interbank foreign exchange market.

The interbank foreign exchange market was initiated in the range of Rs141.37 and 141.39.

The market recorded day high of Rs141.3850 and low of Rs141.27 and closed at Rs141.29.

Currency experts said that the inflows of remittances and export receipts helped the rupee to make gain. However, they said that Pakistan and IMF talks on new loan program could pressure the local currency.

The exchange rate in open market was remained unchanged.

The buying and selling of dollar was recorded at Rs141.70/Rs142.20, the same previous day level, in cash ready market.

May 2, 2019
SBP extends IRFS 16 implementation to June 30

The State Bank of Pakistan (SBP) has granted an extension for the implementation of IFRS 16 for banks, development financial institutions (DFIs), and microfinance banks (MFBs) in Pakistan. The new deadline for compliance has been extended from January 1, 2019, to June 30, 2019.
(more…)

May 2, 2019
Headline inflation increases by 8.8 percent in April 2019

ISLAMABAD: The headline inflation has surged by 8.8 percent on year on year (YoY) in April 2019 as compared to an increase of 9.4 percent in previous month and 3.7 percent in April 2018, said Pakistan Bureau of Statistics (PBS) on Thursday.

The Consumer Price Index (CPI) based inflation on month-on-month basis, it increased by 1.3 percent in April 2019 as compared to an increase of 1.4 percent in the previous month and an increase of 1.8 percent in corresponding month i.e. April 2018.

Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 7.0 percent on (YoY) basis in April 2019 as compared to an increase of 8.5 percent in the previous month and 7.0 percent in April 2018. On (MoM) basis, it increased by 1.0 percent in April 2019 as compared to an increase of 0.5 percent in previous month, and an increase of 2.5 percent in corresponding month of last year i.e. April 2018.

Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 7.2 percent on (YoY) basis in April 2019 as compared to 7.9 percent in the previous month and by 5.0 percent in April 2018. On (MoM) basis, it increased by 0.9 percent in April 2019 as compared to an increase of 0.4 percent in the previous month and an increase of 1.6 percent in corresponding month of last year i.e. April 2018.

The Sensitive Price Indicator (SPI) inflation on YoY basis increased by 9.3 percent in April 2019 as compared to an increase of 8.8 percent a month earlier and a decrease of 0.5 percent in April 2018.

On MoM basis, it increased by 0.9 percent as compared to an increase of 1.6 percent in the previous month and an increase of 0.4 percent in corresponding month of last year i.e. April 2018.

Wholesale Price Index (WPI) inflation on YoY basis increased by 13.8 percent in April 2019 as compared to an increase of 12.6 percent a month earlier and an increase of 4.0 percent in April 2018.

WPI inflation on MoM basis increased by 2.3 percent in April 2019 as compared to an increase of 1.7 percent a month earlier and an increase of 1.3 percent in corresponding month of last year i.e. April 2018.

May 2, 2019
Sales Tax Act 1990: Vast recovery powers of IR officers

KARACHI: The officers of Inland Revenue have vast powers under sales tax laws to recover outstanding amount from taxpayers.

Section 48 of updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR) explained the powers of IR officers for recovery of outstanding amount from taxpayers.

Section 48: Recovery of arrears of tax.

Sub-Section (1): Subject to sub-section (1A), where any amount of tax is due from any person, the officer of Inland Revenue may:-

(a) deduct the amount from any money owing to person from whom such amount is recoverable and which may be at the disposal or in the control of such officer or any officer of Income Tax, Customs or Central Excise Department;

(b) require by a notice in writing any person who holds or may subsequently hold any money for or on account of the person from whom tax may be recoverable to pay to such officer the amount specified in the notice;

(c) stop removal of any goods from the business premises of such person till such time the amount of tax is paid or recovered in full;

(ca) require by a notice in writing any person to stop clearance of imported goods or manufactured goods or attach bank accounts;

(d) seal the business premises till such time the amount of tax is paid or- recovered in full;

(e) attach and sell or sell without attachment any movable or immovable property of the registered person from whom tax is due; and

(f) recover such amount by attachment and sale of any moveable or- immovable property of the guarantor, person, company, bank or financial institution, where a guarantor or any other person, company, bank or financial institution fails to make payment under such guarantee, bond or instrument:

Provided that the Commissioner Inland Revenue or any officer of Inland Revenue shall not issue notice under this section or the rules made thereunder for recovery of any tax due from a taxpayer if the said taxpayer has filed an appeal under section 45B in respect of the order under which the tax sought to be recovered has become payable and the appeal has not been decided by the Commissioner (Appeals), subject to the condition that ten per cent of the amount of tax due has been paid by the taxpayer.

Sub-Section (1A): If any arrears of tax, default surcharge, penalty or any other amount which is adjudged or payable by any person and which cannot be recovered in the manner prescribed above, the Board or any officer authorized by the Board, may, write off the arrears in the manner as may be prescribed by the Board.

Sub-Section (2): For the purpose of recovery of tax, penalty or any other demand raised under this Act, the officer of Inland Revenue shall have the same powers which under the Code of Civil Procedure 1908 (V of 1908), a Civil Court has for the purpose of recovery of an amount due under a decree.

May 2, 2019
FBR may proceed for sales tax blacklisting of M/s. Hascol Petroleum Limited

KARACHI: Federal Board of Revenue (FBR) will start proceeding to blacklist a major oil marketing company after suspending this week for non-compliance and suppressing sales to evade taxes.

The FBR suspended the sales tax registration of M/s. Hascol Petroleum Limited earlier this week for evading sales tax to the tune of Rs3.9 billion by concealing actual sales.

The status of the company for active sales taxpayer is remained suspended on the official FBR website till 2:50AM on May 02, 2019.

The status of the company can be checked at https://e.fbr.gov.pk/atlsearchutility.aspx?PID=BLcOS/IMzEf3Rn3kVI062g== by inserting company’s sales tax registration number (STRN) 1200271018373 or through National Tax Number (NTN) 1496632-8.

A notice issued on April 29, 2019 for suspending sales tax registration of the OMC said that the company had concealed and evaded sales tax amounting to Rs3.69 billion and further tax amounting to Rs279.84 million.

“Therefore, registered person is being charged with the contravention of Section 3, 3(1A), 6, 22, 23 and 26 of the Sales Tax Act, 1990 and Rs3.97 billion is recoverable Under Section 11(2) of the Sales Tax Act, 1990, along with default surcharge Under Section 34(1) and penalty Under Section 33(5) the Sales Tax Act, 1990,” according to the notice.

The notice also stated: “sales tax registration of above mentioned registered person is hereby suspended with immediate effect till finalization of the proceedings,” it added.

The OMC through a notice to Pakistan Stock Exchange (PSX) on April 30, 2019 flatly denied all the charges stating that it was not involved in any form of theft and tax fraud.

Some section of press ran the story regarding suspension of sales tax registration of the company along with charges framed by the FBR. The notice sent to the PSX by M/s. Hascol Petroleum Limited also threatened to initiate legal action against such news reports.

FBR sources said that suspension of sales tax registration of any company was not done on the wishes of a person. It is thorough process and a commissioner of Inland Revenue only issued such order after having sufficient records.

The sources further said that since the centralization of system the suspension of sales tax registration was done through the main system of Inland Revenue and WeBOC system.

The sources said: “Commissioner shall issue written order to the concerned registered person detailing the reasons for suspension. The order shall also be provided to all other Large Taxpayer Units (LTUs)/Regional Tax Offices (RTOs), the FBR‘s computer system, the STARR computer system and the Customs Wing computer system for information and necessary action as per law.”

They also said that suspension of registered person will make them ineligible to avail input tax adjustment/refund. “Similarly, no input tax adjustment/refund shall be allowed to any other registered persons on the basis of invoices issued by such suspended person (whether issued prior to or after such suspension).”

The sources said that the suspension would also disable a company to file a goods declaration in customs system for clearance of consignment.

What is post suspension?

According to FBR’s official website the suspended registered person will be issued a show cause notice (through registered post or courier service) within seven days of issuance of order of suspension by the Commissioner.

“The registered person will have an opportunity of hearing with fifteen days of the issuance of such notice clearly indicating that he will be blacklisted.”

In case of non-availability of the suspended person at the given address, the notice may be placed on the main notice Board of the LTU/RTO.

The sources said that where the show cause notice is not issued within seven days of the order of suspension, the order of suspension shall become invalid.

The notice issued by LTU Karachi to suspend the registration:

May 2, 2019
MCC Gwadar announces auction of confiscated vehicles on May 04

KARACHI: Model Customs Collectorate (MCC) Gwadar has announced auction of confiscated vehicles to be held on May 04, 2019 at Custom House Gwadar.

The collectorate announced the auction of following vehicles:

01. Toyota Axio Luxel 1800CC, Model 2007, Chassis No.ZRE142-6007330

02. Toyota Hilux Surf SSR-X 2700CC, Model 2000, Chassis No. VZN185-9041829

03. Suzuki Jimmy Jeep 1300CC, Chassis No. J1331W-10334

04. Land Cruiser V8 4700CC, Model 2002, Chassis No. UZJ100-0140536

05. Toyota Land Cruiser 4700CC, Model 1998, Chassis No. UZJ100-0003462

06. Toyota Hilux Surf 3000CC, Model 1998, Chassis No. RZN185-9041977

07. Toyota Land Cruiser 3 door, Model 2003, Chassis No. VZJ125-0001242

08. Toyota Corola X 1600CC, Model 2006, Chassis No. NZE120-0123636

09. Toyota Corola X 1500CC, Model 2004, Chassis No. NZE121-3277633

10. Toyota Premio 1794CC, Model 2004, Chassis No. ZZT240-5036121

11. Toyota Premio 1800CC, Model 2006, Chassis No. ZZT240-0113265

12. Toyota Hilux Surf 3000CC, Model 1992, Chassis No. LN130-0105065

13. Toyota Corolla X, Model 2005, Chassis No. NZE121-0373068

14. Toyota Premio, Model 2005, Chassis No. ZZT240-0061952

15. Toyota Premio, Model 2006, Chassis No. ZZT240-5053096

16. Toyota Axio X, Model 2007, Chassis No. NZE141-6024739

17. Toyota Corolla Raum, Model 2003, Chassis No. NCZ20-0018417

18. Zamyad Irani Pickup, Chassis No. NAZPL140TH0466694

19. Toyota Hilux Surf (SSRG) 3378CC, Model 2006, Chassis No. VZN215-3260202

20. Toyota Corolla X, Model 2003, Chassis No. NZE121-3260205

21. Toyota Corolla X, Model 2005, Chassis No. NZE121-0353837

22. Toyota Corolla X, Model 2005, Chassis No. NZE121-0350500

23. Toyota Raum, Model 2004, Chassis No. NCZ20-0042911

24. Toyota Vitz, Model 2003, Chassis No. SCP13-0024190

25. Toyota Premio, Model 2007, Chassis No. ZRT260-3009646

26. Toyota Premio X, Model 2003, Chassis No. ZZT240-5006935

27. Toyota Raum, Model 2004, Chassis No. NCZ20-0064404

28. Madza Titan (06 Wheeler), Model 1995, Chassis No. KC-WG-6711-1100108

29. Launch without Engine

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MCC Preventive announces auction of vehicles on April 30

May 2, 2019
FBR reduces up to 88 percent sales tax on petroleum products

ISLAMABAD: Federal Board of Revenue (FBR) has significantly reduced the sales tax rates up to 88 percent on supply of petroleum products for five days.

The FBR issued SRO 499(I)/2019 dated April 30, 2019 to announced reduction in sales tax rates on petroleum products.

The government a day earlier announced not to immediately pass on the rise in oil prices to consumers and referred the issue to the Economic Coordination Committee of the Cabinet to decide the petroleum prices for the month of May 2019.

Meanwhile, the government absorbed the rise in petroleum price by reducing the sales tax rates on petroleum products till May 05, 2019.

The FBR amended the SRO 1574(I)/2018 dated December 31, 2018 through the latest notification, under which the sales tax on petrol reduced by 88 percent to 2 percent from 17 percent.

The sales tax rate on High Speed Diesel has been reduced by 23.6 percent to 13 percent from 17 percent.

The FBR reduced the sales tax rate on kerosene oil by 53 percent to 8 percent from previous 17 percent.

Similarly the sales tax rate on light diesel oil has been reduced by 47 percent to 9 percent from 17 percent.

May 1, 2019
Sales Tax Act 1990: Suo Moto powers of FBR, IR Commissioner to call for record

KARACHI: The sales tax laws have authorized suo moto powers to Federal Board of Revenue (FBR) and Commissioner of Inland Revenue (IR) to call for records from department and taxpayers.

The Section 45 of updated Sales Tax Act, 1990 explained the suo moto powers of FBR and IR commissioner to call for records in any case.

Section 45A: Power of the Board and Commissioner to call for records:

Sub-Section (1): The Board may, of its own motion, or otherwise call for and examine the record of any departmental proceedings under this Act or the rules made there under for the purpose of satisfying itself as to the legality or propriety of any decision or order passed therein by an Officer of Inland Revenue, it may pass such order as it may think fit:

Provided that no order imposing or enhancing any penalty or fine requiring payment of a greater amount of Sales Tax than the originally levied shall be passed unless the person affected by such order has been given an opportunity of showing cause and of being heard.

Sub-Section (2): No proceeding under 9[this section] shall be initiated in a case where an appeal under Section 45B or Section 46 is pending.

Sub-Section (3): No order shall be made under this Section after the expiry of five years from the date of original decision or order of the sub-ordinate officer referred to in sub-section (1).

Sub-Section (4): The Commissioner may, suo moto, call for and examine the record of any proceeding under this Act or the rules made thereunder for the purpose of satisfying himself as to the legality or propriety of any decision or order passed by an officer of Inland Revenue subordinate to him, and pass such order as he may deem fit.

Section 45B: Appeals

Sub-Section (1): Any person, other than the Sales Tax Department, aggrieved by any decision or order passed under sections 10, 11, 25, 36, or 66, by an officer of Inland Revenue may, within thirty days of the date of receipt of such decision or order, prefer appeal to the Commissioner Inland Revenue (Appeals):

Provided that an appeal preferred after the expiry of thirty days may be admitted by the Commissioner Inland Revenue (Appeals) if he is satisfied that the appellant has sufficient cause for not preferring the appeal within the specified period:

Provided further that the appeal shall be accompanied by a fee of one thousand rupees to be paid in such manner as the Board may prescribe.

Sub-Section (1A): Where in a particular case, the Commissioner (Appeals) is of the opinion recovery of tax levied under this act, shall cause undue hardship to the taxpayer, he, after affording opportunity of being heard to the commissioner or officer of Inland revenue against whose orders appeal has been made, may stay the recovery of such tax for a period not exceeding thirty days in aggregate.

Sub-Section (2): The Commissioner Inland Revenue (Appeals) may, after giving both parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, varying, altering, setting aside or annulling the decision or order appealed against:

Provided that such order shall be passed not later than one hundred and twenty days from the date of filing of appeal or within such extended period as the Commissioner (Appeals) may, for reasons to be recorded in writing fix:

Provided further that such extended period shall, in no case, exceed sixty days:

Provided further that any period during which the proceedings are adjourned on account of a stay order or Alternative Dispute Resolution proceedings or the time taken through adjournment by the petitioner not exceeding thirty days shall be excluded from the computation of aforesaid periods.

Sub-Section (3): In deciding an appeal, the Commissioner of Inland Revenue (Appeals) may make such further inquiry as may be necessary provided that he shall not remand the case for de novo consideration.

May 1, 2019