KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday urged the government to defer implementation of obtaining information of unregistered buyers.
(more…)Author: Faisal Shahnawaz
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Rupee hits another historic low against dollar
KARACHI: The Pak Rupee hit another historic low after depreciation of Rs1.11 against US dollar on Monday owing to payment pressure for oil import.
The rupee ended Rs156.96 to the dollar as compared with last Friday’s closing of Rs155.85 in interbank foreign exchange market.
The foreign currency market initiated in the range of Rs156.50 and Rs157.00. The market witnessed day high of Rs157.00 and low of Rs156.96 and closed at Rs156.96 in interbank foreign exchange market.
However, the exchange rate in open market witnessed appreciation of rupee value.
The buying and selling of dollar was recorded at Rs155.50/Rs156.50 from last Saturday’s close of Rs156.00/Rs157.00 in cash free market.
The rupee witnessed depreciation for the last more than one and half years. The rupee was kept stable by the previous government in order to control the economic imbalances.
However, keeping the rupee stable against dollar created balloon in the economy. Now the government is under negotiation with the IMF to bargain a new loan program, which is almost finalized. The IMF board is scheduled to meet next week to review Pakistan’s request for new loan program.
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Customs intelligence Karachi announces auction of confiscated vehicles on June 19
KARACHI: Customs Intelligence and Investigation has announced auction of confiscated vehicles to be held on June 19, 2019 at State Warehouse of the Directorate of Intelligence and Investigation, Karachi.
According to details made available to PkRevenue.com following vehicles will be presented for auction on June 19, 2019.
Auction of Left over lots (Rejected lots )and fresh lots will be held on 19th June, 2019.
1. Toyota Crown Car, Reg no AA-7095, Model 1995.
2. BMW Car, Reg no QZ-318, Model 2000.
3. Mercedes Benz Car(E-500), Reg no AC-3077, Model 2002.
4. Honda Inspire Car, Reg no GS-4012, Model 2003.
5. Toyota Crown Car, Reg no AAJ-191, Model 2002.
6. Mercedes Benz car, Reg no AAJ-106, Model 2001.
7. Toyota Land Cruiser Jeep, Reg no BRN-124689, Model 1990.
8. Toyota Premio Car, Reg no BFB-537, Model 2005.
9. Toyota Premio Car, Reg no LT-737, Model 2003.
10. Toyota Land Cruiser, Reg no JAF-935, Model 1994.
11. Toyota Land Cruiser, Reg no IDL-531, Model 1993.
12. Mercedes Benz Car(S-550), Reg no CZ-672, Model 2007.
13. BMW Car760Li, Reg no BCP-523, Model 2002.
14. Toyota Crown Car, Reg no BBL-439, Model 2004.
15. Honda Accord Car, Reg no AXY-881, Model 2003.
16. Toyota Surf Jeep, Reg no BD-0310, Model 2003.
17. Toyota Mark-X Car, Registration plate/Mark no AQJ-399, Model 2007.
18. Toyota Vitz Car, Reg no BFH-878, Model 2001.
19. Mercedes Benz Car, Reg no AYB-709, Model 2008.
20. BMW 530i Series Car, reg no LZG-105, Model 2004.
21. Toyota Prado Jeep, Reg no LXW-7155, Model 1996.
22. Toyota Premio Car, Reg no BDJ-715, Model 2002.
23. Toyota Lexus Car, Reg no BDJ-700, Model 2005.
24. BMW 320i Car, Un-Registered, Model 2003.
25. Toyota Vitz Car, Registration plate/mark AA-483, Model 2001.
26. Honda Civic Rebon Car, Registration plate/Mark YK-561, Model 2005.
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MCC Appraisement East announces auction of confiscated vehicles on June 17
KARACHI: Model Customs Collectorate (MCC) Appraisement East has announced public auction of confiscated vehicles on June 17, 2019 at Anti-Smuggling Organization (ASO) Office, Ghasbandar Kemari, Karachi.
Following vehicles will be presented for auction:
1. Mitsubishi Pajero Jeep (used), Reg.GS-2000, Model-1994,Chassis -V46-4034791/Engine-4M4D EXT T7UF.
2. Used Toyota Lexus Car, Reg no UC-868, Model 2006(as per seat belt), Chassis JTHBG963905034702/Engine EMH-3 GR-FE158467-3485cc.
3. Used Toyota Harrier Jeep, Reg no JAA-454, Model -1998-2999cc,Chassis no MCU-10-0013510, Engine no IMZ-FE6688090.
4. Used Honda Saloon Accord Car, Reg no-BFT-418, Model-2003, 1990cc, Chassis no-CL7-3006339, Engine No-33101802.
5. Used Mercedes Benz (AG), Reg No-AB-1001, Model-1991-02, 2999cc, Chassis no-WDB1240312B476728.
6. Used Toyota Mark-II Saloon Car, Reg No-BVL-708, Model-2000, 1800HP, Chassis no-JZX110-6000922, Engine No-1JZ-075010.
7. Used Toyota AXIO-X Car-White Colour, Reg No-BFE-068, 1496cc, Model-2007, Chassis no-NZE-141-6028039, Engine no, INZ-C0360547.
8. Used Toyota Land Cruiser Jeep-Silver Colour, Reg No-BG-1131, Model No-1989, 3400cc, Chassis No-BJ60-023765, Engine No, 3B-1098887( As Per Reg Book) Diesel.
9. Used Toyota Saloon Car XE, Model no-1999, 1500cc, Colour Red, Chassis No-AE-100-5171778, Engine-SA-FE-1500cc.
10. Used Toyota Premio Saloon Car, Reg No-BFM-306, Model No-2004, Chassis No-AZT240-0017447, Engine No- 1AZ -4802097.
11. Used Toyota Mark-X Car, Reg No- BBC-301, Model No-200used5, Chassis No-GRX-120-0042956, Engine No- 4GR-FSE-2499cc.
12. Used Toyota Crown Royal Saloon (G) Car, Reg no- BEZ-998, Model 2005, Chassis No. GRS 182-1015624, Engine no 0123426-2994cc.
13. Used Toyota Land Cruiser Jeep, Reg no. LEB-06-2007, Model 1996-2982cc-silver colour, Chassis No VZ95-0004948, Engine No. IKZC679955.
14. Used Toyota Premio Car, Model 2005, Reg No. AAQ-945-Qta, Chassis No ZZT-240-5041761, Engine No. 1ZZFE-2200724, 1794cc, white colour.
15. Used Toyota Surf Jeep, Model 2007, Reg no- BF-9925, Chassis No TRN210-0002425, Engine no 2TR-0341543, 2697cc, tearl white.
16. Used Toyota Land Cruiser Jeep, Model 2004, Reg no JAG-345, chassis no KDJ121-0001884, Engine no 1KD-1184169,2982cc.
17. Used Toyota Land Cruiser Jeep, Model-2003, Reg no BF-8255, Chassis no UZJ100-0144369, Engine no 2UZ-FE9091472, 4700cc, white.
18. Used Mercedes Benz Saloon Car, Model-2007, chassis no WDD2193222A117436, Engine no 64292040471958, 3200cc, Black.
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Commissioners IR empowered to conduct audit of taxpayers every year
KARACHI: Commissioners of Inland Revenue have been empowered to conduct audit of a registered taxpayer every year after removal of restriction through Finance Bill 2019.
Through Finance Act, 2018 a restriction was imposed on offices of the Federal Board of Revenue (FBR) under which they would conduct audit of taxpayers once in every three years.
However, the Finance Bill 2019 proposed to delete the proviso which was introduced through Finance Act last year.
Experts at EY Ford Rhodes Chartered Accountants said that certain taxpayers challenged the audit proceedings under Section 25 where sales tax audit had already been conducted during any of the last three years on the premise that the amendment introduced through the Finance Act, 2018 was procedural change in law and was applicable retrospectively.
Recently, the Honorable Lahore High Court has adjudged the matter in favor of the taxpayer. It appears that the proposed deletion of the third proviso to Section 25 will neutralize the judgment of the Honorable Lahore High Court.
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Commercial importers to file income returns after removal of FTR
ISLAMABAD: Commercial importers will require to file return of income and statement of assets to the tax authorities after the removal of final tax regime.
Tax authorities said that the commercial importers would require to submit details of imports and source of payment for opening the letter of credit (LCs) through their returns.
According to budget commentary by EY Ford Rhodes on Finance Bill, 2019, before the Finance Act, 2018, tax required to be collected under Section 148 on import of plastic raw material imported by an industrial undertaking, falling under PCT headings 39.01 to 39.12, edible oils and packing material is treated as minimum tax.
Furthermore, tax required to be collected on import of goods that are sold in the same condition as they were when imported was treated as final tax.
The Finance Act, 2018 brought a substantive conceptual shift with respect to taxation of commercial importers whereby such tax collection was deemed to be “minimum tax” in respect of such importers.
Due to the aforesaid change in taxability of commercial importers, there were grave concerns shown by the above sector, as this change would have required the commercial importers to declare the financial results for comparison of tax on profits to the minimum tax on imports.
As a result of strong lobbying by commercial importers, amendments were made in Section 148 through the Finance Supplementary (Second Amendment) Act, 2019 whereby tax collected at import stage from commercial importers was again treated as final discharge of tax liability of such importers.
“The Finance Bill 2019 now proposes to restore the position as stood after the amendments made through the Finance Act, 2018 to change the character of such tax collection from “final tax” to “minimum tax”.
“Such commercial importers, pursuant to the proposed amendments will now be required to file a return of income instead of filing a statement in terms of Section 115 of the Ordinance.”
The Bill also proposes amendments in Sub-section (8A) of Section 148 whereby tax collected at the time of import of ships by ship-breakers is also to be treated as ‘minimum tax’.
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Karachi Chamber highlights budget anomalies, urges rectification
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Junaid Esmail Makda, while highlighting various Sales Tax and Income Tax anomalies unveiled in the Federal Budget 2019-2020, appealed Prime Minister Imran Khan, State Minister for Revenue Hammad Azhar and Chairman FBR Shabbar Zaidi to rectify all these anomalies on top priority prior to seeking approval of the Budget from the parliament.
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Punjab presents Rs2,300 billion surplus budget for 2019/2020
LAHORE: The Punjab government on Friday presented total outlay Rs2,300 billion budget for fiscal year 2019/2020 with Rs233 billion surplus for the fiscal year.
Punjab Finance Minister Makhdoom Hashim Jawan Bakht on floor of the house presented the budget said that total volume of the budget for fiscal year 2019/2020 was Rs2,300 billion up from Rs2,026 billion for the outgoing fiscal year.
He said that allocation for Annual Development Plan (ADP) is Rs350 billion, which is 47 percent higher from current year ADP of Rs238 billion.
The ADP included Rs60.5 billion foreign funded projects and Rs42 billion innovative financing.
For the current expenditure the province has allocated Rs1,299 billion up for 2019/2020 from Rs1,264 billion, which is 2.7 percent higher from the current fiscal year.
The finance minister said that the federal government had set a tax target of Rs5,555 billion for Federal Board of Revenue (FBR) for fiscal year 2019/2020. He said that the province would also contributed Rs1,601 billion in the next fiscal year.
The revenue from the province’s own resources will be Rs388.4 billion, 3.31 percent increase from the current fiscal year.
He said that the province had decided to increase salary and pension at par with the federal government.
While non-salary budget has been reduced to Rs279 billion in fiscal year 2019/2020 as compared with current year’s Rs305 billion.
Makhdoom Hashim Jawan Bakht said that present budget has been aimed at austerity and expenditures have been reprioritized. He said that non-salary current expenditures have been reduced by 11 percent. It is decided to cut salary of provincial cabinet by 10 percent.
All operating expenditures have been reduced by 10 percent except procurement of medicines.
Physical assets procurement including vehicles, machinery etc. by all departments has been reduced by 20 percent.
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Sindh announces 15pc increase in salary, pension for 2019/2020
KARACHI: The Sindh government on Friday announced increase in salary and pension by 15 percent and also enhanced the minimum wage rate at Rs17,500 per month.
Presenting provincial budget on the floor of the house, Sindh Chief Minister Syed Murad Ali Shah said that the output of government is directly related to the performance of every individual employee.
“All the employees of Government of Sindh have my gratitude.”
For next financial year 2019-2020 we are proposing an increase of 15 percent in pay as Adhoc Relief Allowance of all Government employees and pensioners.
The government of Sindh has introduced Special Health Care Allowance and enhanced Health professional Allowance for BPS-17 to BPS-20 for doctors.
The compensation package for Shaheed and Injured personnel of Police Department has been doubled from Rs.5 million to Rs.10 million. Accordingly Rs.2 billion have been proposed in the budget 2019-2020.
The minimum wage rate has been kept at par with the Federal Government at the rate of Rs.17, 500 per month.
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Sindh unveils Rs1,217bn budget for 2019/2020
KARACHI: The Sindh government on Friday unveiled Rs1,217 billion budget for fiscal year 2019/2020.
Announcing the budget for next fiscal year, Syed Murad Ali Shah, Chief Minister, Sindh said that the total receipts of the province for the financial year 2019-20 are estimated at Rs1,217 billion against an estimated expenditure of Rs1,217 billion.
He said that as Federal Transfers, the province is expected to receive Rs835.375 billion. Receipts from Federal Government will account for 74.3 percent of the total receipts. He said that the federal government has failed to achieve its target in yesteryears.
“We have adapted the figures communicated to us by the Federal Government. We strongly apprehend that Federal Government will not be able achieve its target unless drastic structural changes are introduced,” he said.
Failure to achieve its targets will create financial problems for the Provincial Government during the next financial year 2019-2020. Our own provincial receipts are growing steadily and provincial revenue targets are increased from Rs243.082 billion in 2018-2019 billion to Rs355.4 billion for financial year 2019-2020, the chief minister said.
On the current revenue side, the expenditure budget is estimated at Rs.870.217 billion which shows an increase of 12.5 percent over the current year allocation of Rs.773.237 billion. This increase in expenditure is primarily in the employee related expenses which could not have been avoided.
Similarly, the impact of increasing utilities has been absorbed. Our austerity policy shall continue during the next financial year. We have introduced major cuts in operating expenses. However, it would not be done at the cost of social sectors.
The Development portfolio for next financial year is Rs.283.5 billion which includes Rs.228 billion on account of Provincial and District ADP.
He said that the injustice meted out to Sindh in the Federal PSDP. He said that overall size of the federal PSDP was Rs.951.0 billion with Rs.127.0 billion of Foreign Project Assistance (FPA).
“Out of above portfolio, Sindh specific schemes are 50 both ongoing and new with an allocation of Rs.33.7 billion.,” Shah said and added: “total schemes included in the Federal PSDP 2019-20; which are by the Government of Sindh are 12 having an allocation of Rs.4.89 billion as compared to Rs.15.0 billion in 2018-19 and Rs.27.3 billion in 2017-18.”