Author: Faisal Shahnawaz

Main features of Amnesty Scheme 2019

KARACHI: The government may launch a new tax amnesty scheme 2019 on April 15 for allowing undeclared local and domestic assets to become part of documented economy.

The main features of the draft amnesty scheme, included:

– Benami assets

– Sales Tax and Federal Excise Duty

– mandatory return filing

– allowing balance sheet revision

– litigation cases would also be allowed

– amnesty to banking transaction will require cash to be put in bank accounts

– there will be limit on gold declaration

– Bank credits in last five years included

– the amnesty will have higher valuation

– this amnesty will have higher rates.

The draft of amnesty scheme also explained persons qualified:

According to it all companies and individuals except: holders of public office since January 01, 2000, their spouses, children, brothers and sister or lineal ascendant or descendant.

Proceeds derived for commission of a criminal offence would be excluded for amnesty.

Cases pending before a court of law would be allowed with the exception of older pending litigation.

April 12, 2019
Sales Tax Act 1990: recovery of short payment without notice

KARACHI: The sales tax law authorized tax authorities to recover short paid amount without issuing notice.

According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 11A of the Act explained the authority of tax officials in recovery of short paid amount.

Section 11A: Short paid amounts recoverable without notice

Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder:

Provided that no penalty under Section 33 of this Act shall be imposed unless a show cause notice is given to such person.

Section 11B: Assessment giving effect to an order

Sub-Section (1): Except where sub-section (2) applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person, the Commissioner or an officer of Inland Revenue empowered in this behalf shall issue the order within one year from the end of the financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.

Sub-Section (2): Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is served with the order:

Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred against the order passed by Appellate Tribunal or a High Court.

April 12, 2019
CPEC to open new vistas of opportunities for entire region: Imran Khan

ISLAMABAD: Prime Minister Imran Khan on Thursday said that China-Pakistan Economic Corridor (CPEC) project will open new vistas of opportunities for the entire region.

The prime minister said that the government accords top priority to the CPEC project.

He said: “The project will not only help in translating all weather Pak-China relations into mutually beneficial economic equation but will also open new vistas of opportunities for the entire region.”

The prime minister was meeting with representatives of 15 leading Chinese companies working on various CPEC and other projects in Pakistan.

The Chinese delegation included representatives from Power China, Three Gorges Corporation, CMEC Neelum Jhelum Power Plant Project, Cr-Norinco Orange Line Project, Huawei, Zong, Port Qasim Power Plant, China Gezhouba Corporation, China State Construction, China Harbour, Matiari-Lahore Transmission Line Project, Haier and other companies.

Chinese Ambassador to Pakistan Yao Jing accompanies the delegation. Omar Ayub Khan, Minister for Power, Makhdoom Khusro Bakhtiar, Minister for Planning, Haroon Sharif, Chairman BOI, Nadeem Babar, Chairman Energy Task Force and other senior officials were also present.

Talking to the Chinese delegation, the prime minister said that the government will provide all possible facilitation to the Chinese companies in undertaking profitable business ventures and taking advantage of business friendly policies of the present government.

Chinese Ambassador while conveying greetings from Chinese President and Premier, said that Chinese leadership is looking forward to the visit of Prime Minister to China.

He thanked the prime minister on behalf of Chinese leadership and business community for his personal interest in facilitating Chinese businessmen and addressing their issues.

He assured the prime minister that Chinese companies will continue to partner with the government in socio-economic development of Pakistan.

April 12, 2019
Tax rates for proposed Amnesty Scheme 2019

KARACHI: Persons may be allowed to avail tax amnesty at one percent for undeclared banking transactions of past five years.

According to draft of Tax Amnesty Scheme 2019, credit entries in a person’s own bank account is allowed at one percent of the total credit entries from July 01, 2013 till June 30, 2018 or 10 percent of peak credit entries during the said period whichever is higher.

A tax rate of 10 percent has been proposed for declaration of benami assets.

For foreign liquid assets repatriated into Pakistan the tax rate shall apply at five percent.

The government has also proposed to allow transactions into benami bank accounts at only two percent of the total credit entries from January 01, 2017 till April 15, 2019 or 10 percent of peak credit entries during the said period whichever is higher.

Any other assets have been allowed to avail amnesty at 7.5 percent of the prescribed value.

The valuation has been proposed for undisclosed income and assets for the purpose of Section 5(2) of Income Tax Ordinance, 2001.

For undisclosed bank accounts, the credit entries from July 01m 2013 till June 30, 2018.

For undeclared open plots and land, flat the valuation shall be cost of acquisition or FBR values on April 15, 2019, whichever is higher.

For undisclosed superstructure, the valuation has been proposed at Rs1,500 per square feet.

For undisclosed motor vehicles, the valuation shall be costs incurred till original registration.

For undisclosed gold, the valuation shall be Rs5,000 per gram.

April 12, 2019
GlaxoSmithkline’s drugs seized for illegal price increase

ISLAMABAD: Federal Minster Aamer Mehmood Kiani and Chief Executive Officer (CEO) Drug Regulatory Authority of Pakistan (DRAP) Asim Rauf visited UDL distribution along with area Federal Inspector of Drugs.

“Stock of GlaxoSmithkline was seized on unauthorized increase in the price,” said a statement on Thursday.

In continuation of the crackdown against companies for unauthorized increase in the prices of their medicines, DRAP has been directed to take strict action by Federal Minister of Health.

Across the country, inspectors of DRAP are involved in active surveillance.

Various medicines were seized in Lahore, Karachi, Islamabad, Faisalabad and Peshawar.

Stock of overpriced medicine seized in Faisalabad from IBL distribution. Around 39 medicines with unauthorized increase in pricing were seized from various pharmacies in Lahore.

Karachi’s MM traders raided by Federal Inspector of Drugs. Huge stock of overpriced medicine seized. Action against unauthorized increase in prices of medicines:

DRAP seized stocks from various medical stores in Peshawar.

Balouch enterprises raided in Multan: seizure of stock of overpriced medicine.

Federal Minister said that legal action will be taken against those involved in unauthorized increase in prices of medicine.

He added that reduction in prices of 395 prices was notified and strict compliance of the companies shall be ensured.

The crackdown will continue against those companies who are not selling medicine on approved prices.

April 12, 2019
FBR sets up complaint cell against corrupt officials

ISLAMABAD: Federal Board of Revenue (FBR) has established a dedicated cell to facilitate taxpayers in filing complaints against corrupt practices of officials of Inland Revenue and Pakistan Customs.

The FBR on Wednesday said that it had established Integrity Management Cell (IMC) to facilitate general public / taxpayers for filing of complaints against corrupt practices of officers/officials of FBR.

The FBR said that following modes may be adopted to lodge complaints:

— By directly calling helpline at 111-772-772 for information.

— By visiting field offices of Inland Revenue & Pakistan Customs.

— By sending an email at [email protected]

— By filing complaint on FBR online portal.

— By submitting either a hard copy of the complaint through post or meeting in person with Secretary (IMC), FBR (HQ), Constitution Avenue, Islamabad.

April 11, 2019
Equity market gains 208 points in narrow band trading

KARACHI: The equity market ended with gain of 208 points on Thursday in a narrow band trading.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,787 points as against 36,579 points showing an increase of 208 points.

Analysts at Arif Habib Limited said that the market traded in a narrow band today, although tilted towards positive, but oscillated between -80 points and +331 points during the session.

Highlight of today’s session remained Cement Sector, which saw trading volumes of 38M (contributed by FCCL, MLCF & DCL) and contributed negatively to the points table.

Selling pressure was observed in the Cement sector, whereby MLCF saw several touchdowns on lower circuit, but otherwise DGKC and LUCK saw considerable buying activity. E&P, Refinery, Banks and Engineering sector performed positive today.

Sectors contributing to the performance include Banks (+48 points), E&P (+46 points), O&GMCs (+36 points), Power (+24 points), Fertilizer (+20 points) and Cement (-20 points).

Volumes increased from 141.2 million shares to 143.8 million shares (+2 percent DoD). Average traded value also increased by 7 percent to reach US$ 31.2 million as against US$ 29.1 million.

Stocks that contributed significantly to the volumes include TRG, FCCL, MLCF, KEL and WTL, which formed 39 percent of total volumes.

Stocks that contributed positively include OGDC (+29 points), PSO (+24 points), HUBC (+22 points), LUCK (+22 points), and HBL (+14 points). Stocks that contributed negatively include DGKC (-13 points), FCCL (-9 points), MLCF (-9 points), HASCOL (-5 points) and CHCC (-5 points).

April 11, 2019
Rupee ends flat in interbank market

The Pakistani Rupee concluded Thursday’s trading session without significant changes against the US Dollar, maintaining a stable position despite initial gains.
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April 11, 2019
Adil Rashid appointed as CEO Wateen Telecom

KARACHI: Wateen Telecom Board of Directors announced today that Adil Rashid has been appointed as Chief Executive Officer of the company effective April 22 and he will replace Rizwan Tiwana, who has resigned for personal reasons.
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April 11, 2019
forex reserves deplete by $169m to $17.228bn

Karachi – The foreign exchange reserves of Pakistan experienced a decline of $169 million, reaching $17.228 billion for the week ended April 5, 2019, according to the State Bank of Pakistan (SBP).
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April 11, 2019