Pkrevenue.com

Author: Faisal Shahnawaz

  • FBR discontinues zero rating facility to two textile units

    FBR discontinues zero rating facility to two textile units

    ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn sales tax zero rating to two textile units in Karachi for misusing facility on consumption of gas and electricity.

    According to Sales Tax General Order (STGO) issued on Wednesday, the FBR withdrew the facility of zero rating that was granted on consumption of electricity and gas to companies including A R Hosiery Works and International Chrome Tannery.

    The FBR said that the zero-rated facility was withdrawn on the recommendation of Regional Tax Office (RTO)-III Karachi.

    The FBR directed the Chief Commissioner Inland Revenue of RTO-III Karachi to communicate with concerned authorities for charging the normal sales tax rates from those textile units.

    The FBR further directed the chief commissioner to submit report in case of misuse of the facility.

  • SBP sells T-Bills worth Rs461.37 billion in auction

    SBP sells T-Bills worth Rs461.37 billion in auction

    KARACHI: The government has raised Rs461.37 billion for budget financing through auction of market treasury bills in an auction held on Wednesday.

    State Bank of Pakistan (SBP) said that it had offered treasury bills in three-, six- and 12 months maturities. However, the central bank only received bids in only three months securities.

    The central bank received bids of Rs516.38 billion at face value of Rs528.928 billion. The SBP accepted bids worth Rs461.37 billion at face value of Rs472.578 billion for three months treasury bills.

    The SBP accepted the bids at 10.55 percent cut-off yield, which was unchanged when compared with the auction held on February 13, 2019.

    The central bank has set the target for auction to sell securities worth Rs650 billion.

  • Equity market makes sharp recovery on Pakistan response to India

    Equity market makes sharp recovery on Pakistan response to India

    KARACHI: In a dramatic turn of events, the Pakistani equity market showcased remarkable resilience, recovering swiftly on Wednesday after a sharp plunge of over 1,400 points attributed to escalating tensions at the Pak-India borders.

    (more…)
  • Rupee ends down by 38 paisas against dollar

    Rupee ends down by 38 paisas against dollar

    KARACHI: The Pak Rupee ended down by 38 paisas against the US dollar on Wednesday owing to growing border tension.

    The rupee was ended at Rs139.26 to the dollar as compared with Rs138.88 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs138.95 and Rs139.05.

    The market recorded day high of Rs139.26 and low of Rs139.00 and closed at Rs139.26.

    Director-General Inter-Services Public Relations Major-General Asif Ghafoor earlier in morning in a tweet said Indian military planes violated the Line of Control (LoC), intruding from the Muzaffarabad sector.

    Following the mounting tension at borders the currency markets witnessed deterioration.

    Last week the Pak Rupee made significant gain dollar owing to shrinking current account deficit and foreign inflows.

    Last Friday the rupee maintained gains for the third consecutive day as exchange rate was reached to Rs138.92 to the dollar on February 19, 2019.

    Pakistan’s current account deficit has narrowed by 16.8 percent to $8.424 billion owing to declining imports and improved foreign remittances.

    According to statistics released by State Bank of Pakistan (SBP), the current account deficit narrowed to $8.424 billion during July – January 2018/2019 as compared with the deficit of $10.124 billion in the corresponding period of the last fiscal year.

    In open market the exchange rate also changed significantly.

    The buying and selling of dollar was recorded at Rs138.70/Rs139.20 from previous day’s closing of Rs138.00/Rs139.00 in cash ready market.

  • Business community applauds Pakistan response to India

    Business community applauds Pakistan response to India

    KARACHI: The business community has applauded the professional approach of Pakistan air force for downing two India jets, which intruding into Pakistani soil.

    Dr. Mirza Ikhtiar Baig, Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), business community leaders S.M. Muneer, Iftikhar Ali Malik, Zubair Tufail, Shaikh Khalid Tawab, have vehemently condemned the act of aggression by Indian air force by violating Pakistan Air space and targeting civilians inside Pakistan.

    They said that the Modi’s government is in hysteric state due to their anticipated defeat and they want to create an atmosphere where they can exploit the sentiments of their voters against Pakistan.

    The business community is behind our brave armed forces and expresses its full solidarity with them. Pakistan Armed forces are among the top Professional forces in the world and not only they can defend the motherland but resoundingly respond to the enemy.

    Dr. Baig said that Pakistan is a nuclear state now and any misadventure by India will have catastrophic consequences for them.

    Pakistan has acted with responsibility so far and Prime Minister has shown maturity by offering all options to India.

    Pakistan’s stance has earned support worldwide and no one has seriously taken Indian allegations against Pakistan for Pulwama incident.

    The incident was purely indigenous and reaction to Indian barbaric brutality against Kashmiri people.

    The business community congratulates the Pakistan Air force for downing the tow Indian jets. They said, India must have leant lesson from this response and will think several times before going any further.

    Dr. Baig also lauded the efforts of the Foreign Ministry for engaging the world on this crucial issues and effectively projecting Pakistan stance.

  • List of 1,208 banned tariff lines for import from India

    List of 1,208 banned tariff lines for import from India

    KARACHI: Following is the list of items not importable from India under Import Policy Order 2016 as issued by minister of commerce.

    The items cannot be imported under Appendix-G of Import Policy Order 2016.

    Following is the list including Serial Number, PCT Code and Description


    See Appendix G of Import Policy Order 2016

  • Equity market recovers earlier losses on shooting down two India aircraft

    Equity market recovers earlier losses on shooting down two India aircraft

    KARACHI: The equity market has recovered early day losses following the news of retaliation by Pakistan and shot down two Indian aircrafts inside Pakistan.

    The KSE-100 index is being traded at 37,723 points dwon 1,098 points or 2.83 percent at 12:16PM.

    In response to PAF strikes this morning as released by MoFA, IAF crossed LOC. PAF shot down two Indian aircrafts inside Pakistani airspace. One of the aircraft fell inside AJ&K while other fell inside IOK. One Indian pilot arrested by troops on ground while two in the area, said GD ISPR.

    Earlier in the day the stock market witnessed a decline of 1475 points.

  • Rupee falls 23 paisas in mid-day trade on border tension

    Rupee falls 23 paisas in mid-day trade on border tension

    KARACHI: The Pak Rupee declined further against the US dollar in mid-day trade on Wednesday owing to growing border tension.

    The dollar is being traded at Rs 139.11 in interbank foreign exchange market. The rupee went down by 23 paisas so far when compared with Rs 138.88 to the dollar in foreign currency market

    Indian military planes violated the Line of Control (LoC), intruding from the Muzaffarabad sector, Director-General Inter-Services Public Relations Major-General Asif Ghafoor said on his official Twitter account early on Tuesday.

    Following the mounting tension at borders the currency markets witnessed deterioration.

    Last week the Pak Rupee made significant gain dollar owing to shrinking current account deficit and foreign inflows.

    Last Friday the rupee maintained gains for the third consecutive day as exchange rate was reached to Rs138.92 to the dollar on February 19, 2019.

    Pakistan’s current account deficit has narrowed by 16.8 percent to $8.424 billion owing to declining imports and improved foreign remittances.

    According to statistics released by State Bank of Pakistan (SBP), the current account deficit narrowed to $8.424 billion during July – January 2018/2019 as compared with the deficit of $10.124 billion in the corresponding period of the last fiscal year.

  • Income Tax Ordinance 2001: No commercial, industrial gas or electricity connection without NTN

    Income Tax Ordinance 2001: No commercial, industrial gas or electricity connection without NTN

    KARACHI: The National Tax Number (NTN) is mandatory for a person applying by commercial or industrial connection for electricity or natural gas.
     
    The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 which explained about taxpayer’s registration.
    Section 181: Taxpayer’s registration.—

    Sub-Section (1): Every taxpayer shall apply in the prescribed form and in the prescribed manner for registration.

    Sub-Section (2): The Commissioner having jurisdiction over a case, where necessitated by the facts of the case, may also register a taxpayer in the prescribed manner.

    Sub-Section (3): Taxpayers’ registration scheme shall be regulated through the rules to be notified by the board.

    Sub-Section (4): From tax year 2015 and onwards, in case of individuals having Computerized National Identity Card (CNIC) issued by the National Database and Registration Authority, CNIC shall be used as National Tax Number.

    Section 181A: Active taxpayers’ list

    Sub-Section (1): The Board shall have the power to institute active taxpayers’ list.

    Sub-Section (2): Active taxpayers’ list shall be regulated as may be prescribed.

    Section 181AA: Compulsory registration in certain cases

    Sub-Section (1): Notwithstanding anything contained in any law, for the time being in force, any application for commercial or industrial connection of electricity or natural gas, shall not be processed and such connection shall not be provided unless the person applying for electricity or gas connection is registered under section 181.

    Section 181B: Taxpayer card

    Subject to this Ordinance, the Board may make a scheme for introduction of a tax-payer honour card for individual taxpayers, who fulfill a minimum criteria to be eligible for the benefits as contained in the scheme.

    Section 181C: Displaying of National Tax Number

    Every person deriving income from business chargeable to tax, who has been issued a National Tax Number, shall display his National Tax Number at a conspicuous place at every place of his business.

  • FBR fixes sales tax rate for cottonseed

    FBR fixes sales tax rate for cottonseed

    ISLAMABAD: Federal Board of Revenue (FBR) has fixed Rs 8 as sales tax for 40 kilogram of cottonseed for the period starting from July 01, 2019.

    Similarly, Rs 7 sales tax for 40kg of cottonseed for the period of starting July 01, 2018 and ending on June 30, 2018 (both days inclusive).

    The FBR on Tuesday issued SRO 253(I)/2019 and said that SRO 188(I)/2015 dated March 05, 2018 was issued for a special procedure for payment of sales tax on cottonseed oil and to exempt cottonseed oil cake from payment of sales tax.

    The FBR further said that the notification was declared ultra vires by the Lahore High Court and the order of the Lahore High Court was upheld by the Supreme Court of Pakistan vide its order dated April 16, 2018 in Civil Petition No. 1028 to 1121, 1433 to 14558 and 2550 to 2553 of 2017 on the ground that the approval of the federal cabinet was not obtained.

    Therefore, the federal government approved the amendments to Sales Tax (Special Procedures) Rules, 2007, which would be effective July 01, 2018.

    The FBR said that the notified sales tax rates would be collected under the special procedure.

    It said that all cotton ginners, if not already registered or required to be registered, shall obtain sales tax registration for the purpose of these rules.

    The amount of sales tax so charged and collected by the cotton ginners shall be declared in the monthly returns and shall be deposited as such without any input tax adjustment.

    The suppliers of cottonseed shall mention sales tax charged separately on the sales tax invoice to be issued by them.

    The oil expelling units using the cottonseed on which sales tax has been charged and collected in the aforesaid manner shall be exempt from payment of sales tax on the supplies of oil cake produced from such cottonseed.

    The ginner shall submit a certificate to the commissioner having jurisdiction by the 15th day of the month following the tax period for the quantity of cottonseed supplied to the growers for sowing purpose.