Pkrevenue.com

Author: Faisal Shahnawaz

  • High Speed Diesel July- March sales hit decade low

    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.

  • UBL decides sale of its Tanzania operation for $3.96 million

    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.

  • Rupee falls to Rs141.05 against dollar in interbank early trade

    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.

  • Sales Tax Act, 1990: collection of excess sales tax

    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.

  • FBR notifies Benami zones for initiating cases across country

    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.

    (more…)
  • Prime Minister directs to ensure security, commodity availability during Ramzan

    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.

  • Pakistan Customs surpasses revenue target, collects Rs510.11bn in nine months

    Pakistan Customs surpasses revenue target, collects Rs510.11bn in nine months

    KARACHI: Pakistan Customs has surpassed the target by collecting Rs510.11 billion as duty during July – March 2018/2019, said a statement on Monday.

    The target for collection of customs duty for the first nine months was Rs509.3 billion. The duty collection during July – March 2018/2019 is higher 19.2 percent when compared with Rs482 billion in the corresponding period of the last fiscal year.

    The customs authorities also collected Rs581.8 billion as sales tax on imported goods during the period. However, the collection was lower when compared with Rs592.6 billion in the same period of the last fiscal year.

    The authorities attributed the decline in sales tax on import stage to decrease in quantity and value of petroleum products and measures of the government to regulate import of vehicles in different schemes.

    Moreover, the customs collected Rs169 billion as withholding income tax on import stage which was 4.6 percent higher than previous year’s collection.

    Besides, Pakistan Customs also collected Federal Excise Duty (FED) to the tune of Rs9.9 billion during July – March 2018/2019 which was 21.2 percent higher when compared with Rs8.2 billion in the corresponding period of the last fiscal year.

  • Alvi praises FTO role in resolving taxpayers’ complaints

    Alvi praises FTO role in resolving taxpayers’ complaints

    ISLAMABAD: President of Pakistan Dr. Arif Alvi has praised the role of Federal Tax Ombudsman (FTO) for resolution of aggrieved taxpayers’ complaints.

    The president said this while talking to Federal Tax Ombudsman, Mushtaq Ahmad Sukhera, who called on him at Aiwan-i-Sadr on Monday.

    FTO also presented the annual report (2018) to the President.

    The President expressed his satisfaction on the decreasing number of representations against the recommendations of FTO.

    He appreciated the launching of e-based Complaint Management Information System(CMIS), which provides paperless office environment.

    He lauded FTO’s efforts for starting focused SMS and email campaigns to reach out to taxpayers.

    Moreover, he commended FTO for the development of a system for registration of complaints through android based hand-held devices.

    He highlighted that video link of FTO with Regional Offices is a step in right direction to eliminate time and space barriers.

    He stated that integration of FTO’s CMIS with FBR will improve its efficiency.

    He emphasized that there is a need for further steps for creation of awareness about the efficacy of the forum.

    He assured his support to the institution in the discharge of its duties and function.

  • Imran Khan welcomes investment from Qatar

    Imran Khan welcomes investment from Qatar

    ISLAMABAD: Prime Minister Imran Khan has welcomed investment from Qatar in various sectors of the economy.

    A delegation of Qatar Investment Authority (QIA) headed by H.E. Sheikh Faisal Bin Thani Al-Thani, Head of Regional Portfolios, called on Prime Minister Imran Khan at PM Office.

    Prime Minister welcomed QIA’s interest in making investments in various sectors of economy.

    The prime minister highlighted various business opportunities in Tourism, Housing and other sectors.

    Imran Khan also highlighted various steps and policy reforms that have been taken by the present government to facilitate investors and the business communities.

    Sheikh Faisal Bin Thani Al-Thani is head of Qatar Investment Department and Head of Qatar Regional Investment Fund at Qatar Investment Authority.

    The Qatari delegation included heads of various organisations in housing, tourism, real estate and energy sectors. Advisor to PM on Commerce Abdul Razzak Dawood, Chairman BOI Haroon Sharif were also present during the meeting. The delegation expressed keen interest in investing in housing, energy, tourism and Airport management sectors of Pakistan.

  • FPCCI criticizes increase in POL product prices

    FPCCI criticizes increase in POL product prices

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday criticized the increase in prices of petroleum products for the month of April 2019.

    In a statement issued by the FPCCI, its president Engr. Daroo Khan Achakzai had shown serious concern on exorbitant increase of Rs6 per litre in the prices of petrol and diesel with effect from April 01, 2019.

    He said: “ It will have a multiplier effect on almost all the business activities including cost of transportation – within and inter-city – of raw materials and consumer goods thus further escalating the cost of production of industrial goods and spurring inflationary trend which at present is already 8.2 percent.”

    The FPCCI Chief elaborated that the price of all the food (fruits and vegetables) and kitchen items; construction material; fertilizers; imported goods etc., would be dearer as these goods are supplied to the different cities of the country through diesel based vehicles.

    The FPCCI chief recalled that the price of crude oil in international market on August 2018, when the PTI government assumed the charge, was US $ 75 / barrel which up to March 28, 2019 was further declined to US $ 66.67 / barrel viz 7 percent – 8 percent.

    “However, instead of passing benefits to the masses, government had not responded to it accordingly and showed reluctance to provide relief to the consumers proportionately”, he added.

    He argued that the actual price of petrol is Rs. 58.94 / litre whereas it is supplied to the consumers @ Rs. 98.89 / litre out of which about Rs. 40 / litre is earned by the government, dealers and distributors.

    Supported by facts and figures Engr. Daroo Khan Achakzai argued, “About 90 percent of total consumption of POL products are jointly consumed by the transport sector and power sector, wherein, almost 65 percent electricity is generated by the thermal while fuel (furnace oil and diesel) consumption for thermal power generation is 52 percent”.

    He therefore, underscored the need to translate these cheaper prices in electricity tariff which would have a positive multiplier effect on cost of operation / production of industrial activities like cement, textile, paint chemical sectors etc. and ultimately contribute in promotion of exports and reduction in inflation.

    This will also help in shifting the burden from CNG consumption in transport to petrol and making it available to the industrial sector particularly in Punjab which is suffering from acute shortage of gas in winter season.