In a significant relief to the industry, the government has agreed to relax labeling conditions until the end of June 2019 to expedite the clearance of consignments stuck at ports. This decision was confirmed by industry sources on Wednesday.
(more…)Author: Faisal Shahnawaz
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Rupee falls by 26 paisas in mid-day trading
KARACHI: The rupee depreciated by 26 paisas against dollar on Wednesday owing to hike in policy rate and petroleum products.
The dollar is being traded at Rs 141.36 in mid-day trade in interbank foreign exchange market. The foreign currency market ended last day at Rs 141.10 to the dollar.
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Another tax amnesty scheme amid claims to bring back looted money
ISLAMABAD: The tall claims of present ruling party for bringing back looted money into the kitty are fading away as the PTI government is introducing a tax amnesty for looter and plunderers.
Finance Minister Asad Umar on Tuesday confirmed that the PTI government is going to announce new tax amnesty for undeclared foreign and domestic assets.
Media reports quoting Umar said that business community was demanding the government to introduce such scheme.
During the last government of PML-N an amnesty was introduced for undeclared foreign and domestic assets, which was remained available for two months i.e. June and July 2018. This amnesty resulted in tax money of Rs120 billion.
At that time it was said by the then government that the business community had demanded the amnesty for the last time.
The PTI government which had come into the power with pledges to bring back looted money is taking U-turn in this matter as Asad Umar defended the tax evaders that should they declare their money in jail.
Asad Umar said that the government was planning to introduce the amnesty scheme before the budget, which was scheduled next month.
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Rupee ends down by 21 paisas in interbank
KARACHI: The rupee depreciated by 21 paisas against dollar on Tuesday owing to hike in policy rate and petroleum products.
The rupee ended Rs141.10 to the dollar from last Friday’s close of Rs140.89 in interbank foreign exchange market.
The interbank foreign exchange market was initiated in the range of Rs140.90 and Rs140.95.
The market recorded day high of Rs141.10 and low of Rs140.95 and closed at Rs141.10.
The exchange rate in open market was moved in favour of the local unit.
The buying and selling of dollar was recorded at Rs142.00/Rs142.50 to the dollar from last day’s closing of Rs142.00/Rs142.70 in cash ready market.
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High Speed Diesel July- March sales hit decade low
KARACHI: The sales of High Speed Diesel (HSD) have declined to decade low due to slowdown in economy, analysts said on Tuesday.
In July – March 2018/2019, HSD sales decline (-20 percent YoY in 9MFY19) touched over decade low due to slowdown in economy. While Motor Spirit (MS or Petrol) growth remained limited to 1 percent YoY, almost 9-Year low on account of decline in Cars/Bikes sales by 4.5 percent/5 percent during 8MFY19, said analysts at Topline Securities.
Pakistan Oil Sales was down 18 percent YoY during Mar 2019, dragged by 50 percent YoY decline in Furnace Oil (FO) and 21 percent YoY drop in HSD sales.
FO sales decline continues due to its low usage in power generation after commencement of new RLNG and coal based power plants.
HSD sales remained on lower side on back of slowdown in economy as indicated by 7MFY19 Large Scale Manufacturing (LSM) decline of 2.3 percent vs. 7 percent growth in 7MFY18.
Further, continuous smuggling from Iran could also be attributed to this decline.
Pakistan State Oil (PSO) regained its market share during Mar 2019 by 5ppts and 3.5ppts MoM in MS and HSD sales respectively to 39 percent and 41 percent respectively. While, Hascol lost 4ppts and 6ppts MoM in both products.
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UBL decides sale of its Tanzania operation for $3.96 million
KARACHI: United Bank Limited (UBL) has decided to sale of its Tanzania operation at the sale price of $3.96 million to Exim Bank Tanzania Limited.
It was decided at the the Annual General Meeting of UBL, which has approved winding up UBL Bank (Tanzania) Limited after accepting letter of intent from Exim Bank Tanzania Limited at sale price of $3.96 million, a notification said on Tuesday.
A special resolution for the approval of the transaction of asset and liability sale of UBL (Tanzania) Limited was discussed at the AGM.
It was resolved that the binding letter of intent received from Exim Bank Tanzania Limited for an asset and liability sale of UBL Bank (Tanzania) Limited for TZs 9.1 billion (equal to $3.96 million) be and is hereby accepted. The said price is subject to adjustment on the closing date of the transaction, the notification said.
The board of directors of UBL has been authorized to complete all the related regulatory, legal and other formalities of the transactions and to further authorize persons to deal and negotiate, execute and implement the transaction with the parties involved.
The AGM further resolved that the board of directors be authorized to initiate and complete the process for the winding up of UBL Bank (Tanzania) Limited subsequent to the consummation of this transaction.
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Rupee falls to Rs141.05 against dollar in interbank early trade
KARACHI: The Pak Rupee depreciates by 16 paisas against US dollar in early trade on Tuesday owing to reports of IMF conditionalities for new loan program.
The dollar is being traded at Rs141.05in interbank foreign exchange market. The foreign currency market was closed yesterday at Rs140.89 to the dollar.
The local currency was showing declining trend since last week due to increase in key policy rate, high inflation, rise in petroleum prices and the government negotiations to enter new IMF loan program.
Reportedly the IMF had asked Pakistan to introduce new exchange rate regime which should be based on market forces.
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Sales Tax Act, 1990: collection of excess sales tax
KARACHI: A person is required to pay sales tax, which was collected under misapprehension of any provision of the act and was not collectable or in excess of tax.
The FBR recently updated Sales Tax Act, 1990 and its Section 3B explained the collection of excess sales tax.
Section 3B: Collection of excess sales tax etc
Sub-Section (1): Any person who has collected or collects any tax or charge, whether under misapprehension of any provision of this Act or otherwise, which was not payable as tax or charge or which is in excess of the tax or charge actually payable and the incidence of which has been passed on to the consumer, shall pay the amount of tax or charge so collected to the Federal Government.
Sub-Section (2): Notwithstanding anything contained in any law or judgement of a court, including the Supreme court and a High court, any amount payable to the Federal Government under sub-section (1) shall be deemed to be an arrear of tax or charge payable under this Act and shall be recoverable accordingly and any claim for refund in respect of such amount shall neither be admissible to the registered person nor payable to any court of law or to any person under direction of the court.
Sub-Section (3): The burden of proof that the incidence of tax or charge referred to in sub-section (1) has been or has not been passed to the consumer shall be on the person collecting the tax or charge.
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FBR notifies Benami zones for initiating cases across country
In a significant move to combat Benami transactions, the Federal Board of Revenue (FBR) has announced the establishment of three dedicated zones in major cities across the country.
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Prime Minister directs to ensure security, commodity availability during Ramzan
ISLAMABAD: Prime Minister Imran Khan on Monday directed interior ministry and all provincial governments to ensure security and availability of commodities during the holy month of Ramzan.
In a letter addressed to Ministry of Interior and Chief Secretaries of all provincial governments including AJ&K and Gilgit Baltistan, the Prime Minister directed that coordination meetings with all provinces should be held to streamline the arrangements including security measures.
Notification of Price Control Committees, down till field levels in all the provinces and ICT should be issued.
The PM office has directed that physical presence of officers at Mandis, specially monitoring the auction process in order to keep base prices at minimum level should be ensured during Ramzan.
It directed the provincial governments that intelligence based action should be taken against black marketing and hoarding.
The provinces have been asked to issue detailed duty roster in each District covering all important markets, without over stretching the officers.
To complement effective implementation and monitoring, services of officers of line departments may be incorporated and investment of magisterial power by the concerned law departments, if required.
The prime minister office advised that performance monitoring of the officers and Districts should be made on KPIs and setting success benchmarks.
It has further advised that volunteers should be mobilized to get feedback about shortages and overpricing on Citizen Complain Portal.
The Prime Minister Office has stressed upon the need for holding well managed Sasta Bazars with availability of all essential commodities on control prices.
Prime Minister has directed that special measures should be taken to control the use of loud speakers during the month of Ramzan.
District Price Control Committees and Law & Order Committee headed by respective DCs should meet at regular intervals. Prime Minister has emphasized upon the need for ensuring fool-proof security arrangements especially during Traveh.
The Prime Minister Office has further advised the provincial government that surprise checking by the senior provincial officers in the districts should be ensured.
The letter calls upon the provincial governments to ensure uninterrupted supply of gas, electricity and water especially at the time of Sehri and Iftar.
It says that provision of subsidized flour, sugar , ghee/oil etc by the provincial governments in model bazar only should also be ensured.
The Prime Minister has directed Ministry of Interior to hold coordination meeting with all relevant stakeholders as soon as possible and to issue instructions/ make necessary arrangements accordingly.
It is pertinent to mention the government has already announced Ramazan package at the Utility Stores for providing low priced commodities to masses.