Pkrevenue.com

Author: Faisal Shahnawaz

  • Notification to appoint Hafeez Shaikh as finance advisor issued

    Notification to appoint Hafeez Shaikh as finance advisor issued

    ISLAMABAD: Prime Minister Imran Khan on Friday appointed Dr. Abdul Hafeez Shaikh as Advisor to the Prime Minister on Finance, Revenue and Economic Affairs with the status of federal minister with immediate effect, said a statement.

    The prime minister office issued notification in this regard.

    In order to take the charge of the portfolio, Dr. Hafeez Shaikh has reached Pakistan. Dr. Shaikh prepared roadmap for economic policies.

    Sources said that adviser would soon to meet Prime Minister Imran Khan. The new finance incharge wanted independence on economic policy framework.

  • Rupee maintains level for 5th consecutive day amid reshuffle in cabinet

    Rupee maintains level for 5th consecutive day amid reshuffle in cabinet

    KARACHI: The rupee maintained level against dollar for the fifth consecutive day on Friday amid reshuffle in the federal cabinet.

    The rupee ended Rs141.40 to the dollar, the same previous day’s level, in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs141.39 and Rs141.40.

    The market recorded day high of Rs141.40 and low of Rs141.3950 and closed at Rs141.40.

    The rupee maintained the level of Rs141.40 to the dollar since April 15, 2019. The rupee also maintained the level despite major reshuffle in the federal cabinet and resignation of the finance minister.

    The exchange rate in the open market however ended with depreciation of the local currency.

    The buying and selling of dollar of Rs141.80/Rs142.30 from previous day’s closing of Rs141.50/Rs142.00 in cash ready market.

  • FBR selects only 2.3pc income tax audit cases out of total filers, World Bank informed

    FBR selects only 2.3pc income tax audit cases out of total filers, World Bank informed

    ISLAMABAD: Federal Board of Revenue (FBR) has informed the World Bank that the tax body has significantly reduced the number of audit selection this year.

    In Audit Policy 2017, FBR selected 7.5 percent cases for audit out of the total filers.

    However, in Audit Policy 2018, FBR has selected 2.3 percent of income tax cases and 2.5 percent of sales tax cases for audit out of the total filers.

    Senior officials of the FBR informed the World Bank team at a meeting held at FBR headquarters.

    On the subject of audit selection of cases, World Bank team was informed that FBR has carried out parametric selection of cases using new business intelligence tools.

    The process has significantly reduced the number of cases selected for audit.

    The World Bank team was informed about the tax reforms introduced by FBR for medium and small sized companies on Ease of Doing Business.

    Abbas Ahmed Mir, Chief (BDT-IT) and Ms. Saba Ijaz, Secretary (BDT-IT) attended the meeting from FBR side.

    FBR Officers briefed the World Bank team about the launch of e-payment of taxes through Alternate Delivery Channels (ADC) which came into effect since March 2018.

    Through Alternative Delivery Channels, the taxpayers can now pay their taxes through ATM, internet banking or mobile banking which has saved taxpayers time and resources.

    FBR team also apprised World Bank team on the reduction of income tax rate from 25 percent in tax year 2018 to 24 percent in tax year 2019 for the small companies.

    Income tax rate will keep on reducing by 1 percent every year till 2023 when it will be 20 percent.

    FBR officers also clarified the Sales Tax Law relating to capital asset purchase and adjustment of input tax under section 8B of Sales Tax Act 1990.

  • Sales Tax Act 1990: tax officials authorized to access record

    Sales Tax Act 1990: tax officials authorized to access record

    KARACHI: The sales tax law has authorized tax officials to access record maintain by registered persons for the purpose of investigation and audit.

    According to updated Sales Tax Act, 1990 issued by the Federal Board of Revenue (FBR), the Section 25 explained maintenance of record by taxpayer and authority of tax department to access the record and conduct audit.

    Section 25: Access to record, documents, etc.

    Sub-Section (1): A person who is required to maintain any record or documents under this Act or any other law shall, as and when required by Commissioner, produce record or documents which are in his possession or control or in the possession or control of his agent; and where such record or documents have been kept on electronic data, he shall allow access to the officer of Inland Revenue authorized by the Commissioner and use of any machine on which such data is kept.

    Sub-Section (2): The officer of Inland Revenue authorized by the Commissioner, on the basis of the record, obtained under sub-section (1), may, once in a year, conduct audit:

    Provided that in case the Commissioner has information or sufficient evidence showing that such registered person is involved in tax fraud or evasion of tax, he may authorize an officer of Inland Revenue, not below the rank of Assistant Commissioner, to conduct an inquiry or investigation under section 38:

    Provided further that nothing in this sub-section, shall bar the officer of Inland Revenue from conducting audit of the records of the registered person if the same were earlier audited by the office of the Auditor-General of Pakistan:

    Provided also that audit under this section shall be conducted only once in every three years.

    Sub-Section (3): After completion of Audit under this section or any other provision of this Act, the officer of Inland Revenue may, after obtaining the registered person’s explanation on all the issues raised in the audit shall pass an order under section (11).

    Sub-Section (4): Omitted

    Sub-Section (5): Notwithstanding the penalties prescribed in section 33, if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge voluntarily, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him:

    Provided if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge during the audit, or at any time before issuance of show cause notice he may deposit the evaded amount of tax, default surcharge under section 34, and twenty five per cent of the penalty payable under section 33:

    Provided further that if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge after issuance of show cause notice, he shall deposit the evaded amount of tax, default surcharge under section 34, and full amount of the penalty payable under section 33 and thereafter, the show cause notice, shall stand abated.

    Explanation.– For the purpose of sections 25, 38, 38A, 38B and 45A and for removal of doubt, it is declared that the powers of the Board, Commissioner or officer of Inland Revenue under these sections are independent of the powers of the Board under section 72B and nothing contained in section 72B restricts the powers of the Board, Commissioner or Officer of Inland revenue to have access to premises, stocks, accounts, records, etc. under these sections or to conduct audit under these sections.

  • Dr. Hafeez Shaikh entrusted for finance charge in major cabinet reshuffle

    Dr. Hafeez Shaikh entrusted for finance charge in major cabinet reshuffle

    ISLAMABAD: Dr. Hafeez Shaikh has been appointed as Advisor to Prime Minister on Finance following resignation of Asad Umar from the slot of finance minister.

    Asad Umar has resigned amid controversies on economic and policy decisions. Interestingly, Dr. Hafeez Shaikh, the nominated advisor to prime minister, was the finance minister during last tenure of Pakistan Peoples Party and he had also resigned in 2013, and the PPP government assigned Saleem Mandviwala for the post.

    Dr Abdul Hafeez Shaikh is an internationally renowned economist with more than 30 years of experience in economic policy making, management and implementation.

    Dr Shaikh has undergraduate and postgraduate degrees in economics from Boston University. He had worked at Harvard University and World Bank, where he was country head for Saudi Arabia and as a Senior Official advised 21 countries in Asia, Africa, Europe and Latin America.

    He served as the finance minister from 2010 to 2013 during the PPP government’s rule.

    During his tenure as federal minister, Dr Shaikh completed 34 sale transactions worth Rs300 billion in banking, telecom, electricity and manufacturing.

    In 2000-2002, he was minister of finance, planning and development of Sindh.

    He was then appointed as the minister for privatization and investment in the Pervez Musharraf administration.

    The government on Thursday announced major reshuffle in the federal cabinet and appointed Dr Abdul Hafeez Sheikh as Advisor on Finance and Senator Azam Swati as Minister for Parliamentary Affairs, besides re-allocation of some ministers’ portfolios.

    The PM Office issued relocation of ministries and advisories, revealing that Chaudhry Fawad Hussain has been made the Federal Minister for Science and Technology followed by Ghulam Sarwar (Federal Minister for Aviation); Ijaz Ahmed Shah (Federal Minister for Interior); and Shehryar Afridi (Minister of State for States and Frontier Regions).

    Federal Minister for Privatization Mohammad Mian Soomro would cease to hold additional portfolio of Aviation Division.

    Those who have been appointed as Special Assistants to the Prime Minister include:-

    Dr Zafar Ullah Mirza (National Health Services, Regulation and Coordination); Dr Firdous Ashiq Awan (Information and Broadcasting Division); and Nadeem Babar (Petroleum Division).

  • Lahore Customs Intelligence announces auction of confiscated vehicles on April 25

    Lahore Customs Intelligence announces auction of confiscated vehicles on April 25

    LAHORE: Directorate of Customs Intelligence and Investigation (I&I) announced auction of confiscated vehicles on April 25, 2019 at the directorate office Lahore.

    The following vehicles would be presented for the auction:

    01. Toyota Progress Car, Engine 2927CC, Model 1999, Reg. No. DGA-271, Chassis No. JCJ11-0005820

    02. BMW Car 745i, Model 2003, Reg No LZM-86, Chassis No, WBAGL22000DP3832

    03. Honda Civic Hybrid Car, Engine, 1339cc, Model 2006, Reg No AAK-572, Chassis No.FD3-1006468

    04. Honda Accord Car CL-9, Model 2002, Reg No BFH-756, Chassis No.CL9-1000417

    05. Toyota Mark-X Car, Model 2005, Reg No NZ-609, Chassis No.GRX120-0025787

    06. Honda Accord Car (Inspire), Model 2003, Reg No BDF-478/Sindh, Chassis No.UCI-1007210

    07. Jaguar X-Type 2.5 Car, Model 2006, Reg No AAA-537-Quetta, Chassis No.SAJAC51MX2XC26667

    08. Toyota Crown Car, Model 2003, Reg No ANY-763/Sindh, Chassis No.JZS175-0064405

    09. Toyota Crown Car, Model 2001, Reg No AXA-037, Chassis No.JZS171-0075220

    10. Toyota Crown Car, Model 2007, Reg No WG-009-ICT, Chassis No.GRS182-5014070

    11. Toyota Crown Hybrid Athlete Car, Model 2014, Reg No AAK-222-ICT, Chassis No.AWS210-6050888

    12. Nissan Petrol Jeep, Model 2006, Reg No LU-064, Reg No WFGY61-003549

    13. Honda Accord Car, Model 2004, Reg No bdy-545, Chassis No.CL9-1050040

    14. Triumph Heavy Motor Cycle Colour Black, Model 2010, Reg No LX 08 UXB, Chassis No. PROTOTYPEVH004CP2

    15. Heavy Motor Cycle Yamaha Brand, Engine 1000cc, Made in Japan, Model R1 2000, Reg No Nil, Chassis No.

    JYARNO41000003182

    16. Toyota Vitz Car, Model 2005, Reg No JG-957, Chassis No. KSP90-0001037

    17. Toyota Mark-X Car Black, Model 2008, Reg No EV-187, Chassis No.GRX120-3059202

    18. Yamaha Dragstar Heavy Motor Cycle, Engine, 1100cc, Model 2002, Reg No-, VP10J-001201

    19. Yamaha Heavy Motor Cycle, Engine 500cc, Model 2006, Reg No LRG-1093, Chassis No.JYASJ0S1000032395

    20. Honda Heavy Bike, Engine 200cc, Model 2006, Reg No LXU-3187, Chassis No.TA200-0034612

    21. Honda Heavy Motorcycle, Model 1992, Reg No -, Chassis No. 2073695

  • Forex exchange reserves fall to $16.19 billion on sovereign bond repayment

    Forex exchange reserves fall to $16.19 billion on sovereign bond repayment

    KARACHI: The foreign exchange reserves of the country fell by $1.03 billion during a week owing to huge repayment made against Pakistan Sovereign Bond.

    The total foreign exchange reserves of the country fell to $16.196 billon by week ended April 12, 2019 as against the reserves level of $17.228 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The central bank said that during the week ending April 12, 2019, SBP’s reserves decreased by US$1,028 million to US$9,243.7 million.

    The official reserves of the central bank were decreased due to payments on account of external debt servicing, including principal repayment of US$1,000 million against Pakistan Sovereign Bond.

    The reserves held by commercial banks were flat at $6.952 billion from previous week’s level of $6.956 billion.

  • Freezing bank account, raid only on discovery of evasion: KCCI

    Freezing bank account, raid only on discovery of evasion: KCCI

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has recommended that harsh measures of freezing bank account and raid should only be undertaken on discovery of massive tax evasion.

    A delegation of KCCI held discussions on Budget Proposals for Federal Budget 2019-2020 with Chairman Federal Board of Revenue (FBR) Jehanzaib Khan and his team at a meeting held at FBR House in Islamabad on Thursday.

    The KCCI team suggested that such harsh actions will only be taken in case of when evasion of very large amount is detected and only when concrete evidence is available rather than carrying out random raids on business entities.

    KCCI’s delegation, which was led by Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli, comprised of Vice Chairmen BMG Haroon Farooki and Anjum Nisar, General Secretary BMG AQ Khalil, President KCCI Junaid Esmail Makda and Former Senior Vice President Muhammad Ibrahim Kasumbi while Dr. Hamid Ateeq Sarwar Member (Inland Revenue Policy), Muhammad Javed Ghani Member (Customs Policy) and Chief of Income Tax, Chief of Sales Tax and Chief of Excise Duty and others were also present at the meeting.

    During the meeting, consensus was developed on various major issues and the FBR officials, while agreeing to most of KCCI’s budget proposals, assured to implement the same in the upcoming budget.

    The FBR Officials, while responding to KCCI’s proposal, agreed to rationalize the tax structure for import of raw materials by commercial importers and manufacturers.

    They also committed to review and curtail the discretionary powers vested to the officials of Inland Revenue which are a source of harassment and extortion of business and industrial community.

    KCCI delegation highlighted all major issues including issues pertaining to the Income Tax, Sales Tax and discretionary powers along with concessions & exemptions in various sectors of the economy which have resulted in the distortion of the tax regime.

    In his remarks, Chairman BMG & Former President KCCI Siraj Kassam Teli pointed out that the current tax regime, relevant laws and discretionary powers were being used to harass the business and industrial community and were hindering economic and industrial growth.

    “These laws have to be reformed in order to create a conducive environment for growth and liberalization of trade and also for the revival of economic activities”, he added.

    On the occasion, a comprehensive presentation was also given to the FBR team in which major taxation issues were highlighted and remedial steps were also given for ease of doing business and enhanced revenue generation.

  • Equity market ends higher in seesaw trade

    Equity market ends higher in seesaw trade

    KARACHI: The equity market gained 59 points on Thursday after witnessing seesaw trading during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,811 points as against 36,753 points showing an increase of 59 points.

    Analysts at Arif Habib Limited said that the market had an exciting session where the Index slipped in and out of green zone several times but ended the session in green.

    Besides after shock of TSA and regardless of SBP’s clarification on the matter, BOP’s price went down again and after initial trading in a narrow range, the price hit lower circuit and closed near that level.

    By the end of session, news of Finance Minister, Asad Umer again caused panic but market saw recovery after initial reaction.

    Banking sector ranked top in terms of volume with 62 million shares, followed by Vanaspati (54 million) and Cement (21 million).

    BOP ranked top consecutively on the volumes table with 53 million shares.

    Sectors contributing to the performance include Banks (+37 points), Power (+33 points), E&P (+28 points), Fertilizer (+26 points) Autos (+7 points), Cement (-47 points).

    Volumes increased from 173 million shares to 216 million shares. Average traded value also increased by 5 percent DoD to reach US$ 36.6 million as against US$ 34.8 million.

    Stocks that contributed significantly to the volumes include BOP, UNITYR1, UNITY, LOTCHEM and PAEL, which formed 60 percent of total volumes.

    Stocks that contributed positively include HBL (+39 points), FFC (+37 points), HUBC (+30 points), UBL (+28 points), and PPL (+25 points). Stocks that contributed negatively include BOP (-22 points), LUCK (-18 points), MCB (-12 points), DAWH (-10 points) and PSO (-10 points).