Pkrevenue.com

Author: Faisal Shahnawaz

  • MCC Appraisement East announces auction of confiscated vehicles on June 17

    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.

  • Commissioners IR empowered to conduct audit of taxpayers every year

    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.

  • Commercial importers to file income returns after removal of FTR

    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’.

  • Karachi Chamber highlights budget anomalies, urges rectification

    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.

    (more…)
  • Punjab presents Rs2,300 billion surplus budget for 2019/2020

    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.

  • Sindh announces 15pc increase in salary, pension for 2019/2020

    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.

  • Sindh unveils Rs1,217bn budget for 2019/2020

    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.”

  • World Bank approves $518 million for Pakistan’s efforts to raise domestic revenue

    World Bank approves $518 million for Pakistan’s efforts to raise domestic revenue

    ISLAMABAD: The World Bank on Friday approved a package of $518 million for two projects in support of Pakistan’s ambitious efforts to raise revenue and reduce compliance cost with a goal of providing better services to the people.

    The $400 million Pakistan Raises Revenue Project will support the Federal Board of Revenue’s (FBR) focus to create a sustainable increase in Pakistan’s domestic tax revenue. The project will assist in simplifying the tax regime and strengthening tax and customs administration. It will also support the FBR with technology and digital infrastructure and technical skills. This will enable more effective use of taxpayer information and more targeted compliance. The Government has set improving tax revenue with low compliance costs as a high priority.

    “Revenue mobilization plays an essential role in Pakistan’s fiscal sustainability,” said Muhammad Waheed, Task Team Leader of the Project. “The project will target raising the tax-to-GDP ratio to 17 percent by financial year 2023-2024 and widening the tax net from the current 1.2 million to at least 3.5 million active taxpayers.”

    Pakistan’s revenue performance has improved significantly from tax policy measures in recent years, rising from 9.5 percent of GDP in financial year 2011-2012 to 12.9 percent in financial year 2017-2018. This is still lower than the level needed by developing countries, of at least 15 percent of GDP, to fund basic government functions and provide services to people.

    “Creating fiscal space through revenue mobilization is critical to reduce the country’s budget deficit, enabling people of Pakistan to benefit from better public investments and services,” said Illango Patchamuthu, World Bank Country Director for Pakistan.

    The $118 million Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management Project will support the Government of Khyber Pakhtunkhwa to increase its capacity for revenue collection and the management of the province’s resources. The project is anchored in the provincial government’s Public Financial Management Strategy (2017-2020) and will strengthen the government’s Public Financial Management system.

    While the government of Khyber Pakhtunkhwa has made progress in revenue mobilization and management of public finances, its revenues remain low. Enhancing the tax revenue could increase its capacity to provide better services to residents. It will also reduce its dependence on federal transfers, which accounted for 86 percent of provincial revenue in the financial year 2016-2017.

    “Mobilizing domestic revenue is crucial to improving human development outcomes in Khyber Pakhtunkhwa,” said Raymond Muhula, Task Team Leader of the Project. “This project will support the government’s priority to increase its own source revenue and to better manage its resources.”

  • Dollar hits record high at Rs155.85 in interbank

    Dollar hits record high at Rs155.85 in interbank

    KARACHI: The dollar appreciated by Rs2.94 to make a new record high on Friday owing to weak economic indicators and high debt repayments during next two years.

    The rupee ended Rs155.85 to the dollar from previous day’s closing of Rs152.91 in interbank foreign exchange market.

    The interbank foreign exchange market initiate in the range of Rs153.50 and Rs153.75. The market recorded day high of Rs156.50 and low of Rs153.95 and closed at Rs155.85.

    Currency experts said that the statement of the adviser to the prime minister regarding interest payment earlier in the day against foreign loan pressurized the local currency.

    The exchange rate in open market also witnessed depreciation of the local currency.

    The buying and selling of the dollar was recorded at Rs156.00/Rs157.50 from previous day’s closing of Rs152.50/Rs153.50 in cash ready market.

  • Dollar hits new high at Rs153.71 in early trade

    Dollar hits new high at Rs153.71 in early trade

    KARACHI: The US Dollar appreciated to record high at Rs 153.71 in early trade on Friday owing to high demand for import.

    The dollar is being trade at Rs153.71 after witnessing 80 paisas in interbank foreign exchange market.

    The exchange rate was closed yesterday at Rs152.91 to the dollar in Interbank Foreign Exchange Market.