Category: Budget

This is parent category of budgets presented by Pakistan government. Here you will find year-wise federal and provincial budgets.

Prime Minister assures business community of considering sales tax zero rating

KARACHI: Prime Minister Imran Khan has assured business community of considering restoration of sales tax zero rating for export sector.

A delegation of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) met Prime Minister Imran Khan on Thursday in Islamabad to discuss anomalies in the Finance Bill 2019.

On FPCCI demand of restoration of SRO 1125(I)/2011 allowing five export oriented export sectors at zero rate, the prime minister assured to consider it sympathetically, said a statement issued by the FPCCI.

The FPCCI delegation was led by S.M. Muneer, leader of the business community and Former Chief Executive TDAP and Former President, FPCCI and consisting of Aqil Karim Dhedi; Engr. Daroo Khan Achakzai, President, FPCCI and Zubair F. Tufail, Convener of the FPCCI Budget Advisory Council – held a detailed meeting with the Prime Minister Imran Khan and Abdul Hafeez Shaikh, Advisor to the PM on Finance which lasted for 2 hours and discussed / briefed them about the hardships of the business community emanated from some harsh measures of the Finance Bill, 2019 that would give serious blow to trade and industry, especially export sector in the wake of exorbitant policy rate of 12.25 percent coupled with the massive devaluation of Pak-Rupee versus dollar in the last few months withdrawal of zero rated regime from export industrial sectors etc.

The FPCCI delegation particularly emphasized and discussed ten major demands out of which eight proposals have been accepted by the Prime Minister, the major one such as doing away with raid on any premises; reduction in tax rates for service sector; routing taxation and business related policy through Federal Government/Cabinet instead of FBR, as directed by the Supreme Court; lack of personal interaction and minimal possibility of abuse of discretionary powers by the tax officials; conduction of audit once in a three years etc.

Moreover the issues of retailers, wholesalers and real estates were also discussed in details.

June 20, 2019
List of transactions not to attract 100 percent increased withholding tax

KARACHI: The Finance Bill 2019 has proposed a new schedule related to compliance with 100 percent increased withholding tax rates to persons not appearing on Active Taxpayers List (ATL).

Deloitte Yousuf Adil, Chartered Accountants in their budget commentary said that the increased withholding tax rates specified under this schedule are inapplicable with respect to following payments and related withholding tax provisions in the case of Person not appearing in the Active Taxpayer list:

Salary under section 149 of Income Tax Ordinance, 2001

Export under section 154 of Income Tax Ordinance, 2001

Income from Property under section 154 of Income Tax Ordinance, 2001

Withdrawal of Balance under Pension Fund under section 156B of Income Tax Ordinance, 2001

Cash withdrawal from Bank under section 231A of Income Tax Ordinance, 2001

Advance Tax on Transactions in Bank under section 231AA of Income Tax Ordinance, 2001

Collection of Tax by NCCPL under section 233AA of Income Tax Ordinance, 2001

Electricity Consumption under section 235 of Income Tax Ordinance, 2001

Domestic Electricity Consumption under section 235A of Income Tax Ordinance, 2001

Tax on Steel Melters, Re-Rollers etc under section 235B of Income Tax Ordinance, 2001

Advance Tax on Purchase of Air Tickets under section 236B of Income Tax Ordinance, 2001

Advance Tax on Functions and Gatherings under section 236D of Income Tax Ordinance, 2001

Advance Tax on Cable Operators and Other Electronic Media under section 236F of Income Tax Ordinance, 2001

Collection of Advance Tax by Educational Institutions under section 236I of Income Tax Ordinance, 2001

Advance Tax on Dealers, Commission Agents and Arthis etc under section 236J of Income Tax Ordinance, 2001

Advance Tax on Purchase of International Air Tickets under section 236L of Income Tax Ordinance, 2001

Advance Tax on Banking Transactions otherwise than through Cross Cheque under section 236P of Income Tax Ordinance, 2001

Payment to residents for use of machinery and equipment under section 236Q of Income Tax Ordinance, 2001

Collection of advance tax on education related expenses remitted abroad under section 236R of Income Tax Ordinance, 2001

Advance Tax on Insurance Premium under section 236U of Income Tax Ordinance, 2001

Advance Tax on extraction of minerals under section 236V of Income Tax Ordinance, 2001

Advance Tax on Tobacco under section 236X of Income Tax Ordinance, 2001

June 20, 2019

Customs duty concessions allowed on 1650 raw materials

KARACHI: The government has allowed customs duty concessions on import of 1650 raw materials through Finance Bill 2019.

According to Deloitte Yousuf Adil, Chartered Accountants, the Finance Bill proposed to introduce concession of Customs Duty on import of 1650 raw materials/industrial inputs.

Major items are listed as follows:

PCT code	Description	Rate
2710.1911	Kerosene	0
2710.1913	J.P.4	0
2710.1998	Spin finish oil	0
2711.1200	Propane	0
2711.1300	Butanes	0
2711.1400	Ethylene, propylene, butylene and butadiene	0
2711.1910	L.P.G.	0
2711.1990	Other	0
2711.2100	Natural gas	0
2711.2900	Other	0
2805.1200	Calcium	0
2805.1900	Other	0
2805.4000	Mercury	0
2808.0010	Nitric acid	0
2808.0090	Sulphonitric acids	0
2809.1000	Diphosphorus pentaoxide	0
2809.2010	Phosphoric acid	0
2814.1000	Anhydrous ammonia	0
2814.2000	Ammonia in auqeous solution	0
2817.0000	Zinc oxide; zinc peroxide.	0
2818.3000	Aluminium hydroxide	0
2819.1000	Chromium trioxide	0
2819.9010	Chromium oxide	0
2819.9020	Chromium hydroxide	0
2936.2100	Vitamins A and their derivatives	0
2936.2200	Vitamin B1 and its derivatives	0
2936.2300	Vitamin B2 and its derivatives	0
2936.2400	D- or DL-Pantothenic acid (Vitamin B3 or Vitamin B5) and its derivatives	0
2936.2500	Vitamin B6 and its derivatives	0
2936.2600	Vitamin B12 and its derivatives	0
2936.2700	Vitamin C and its derivatives	0
PCT code	Description	Rate
2936.2800	Vitamin E and its derivatives	0
2937.1200	Insulin and its salts	0
3002.9010	Human blood	0
3002.9020	Animal blood	0
3105.2000	Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus and potassium	0
8427.1000	Self- propelled trucks powered by an electric motor	0
8433.6000	Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce	0
8436.8000	Other machinery	0
8444.0000	Machines for extruding, drawing, texturing or cutting man- made textile materials.	0
8530.1000	Equipment for railways or tramways	0

June 20, 2019

FPCCI may opt harsh decisions against proposed budgetary measures

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on has announced to take harsh decision against duty and tax measures proposed through Finance Bill, 2019.

At a pressing briefing on Wednesday, Engineer Daroo Khan, President, FPCCI said that the decision would include closure of business and trade activities in protest.

He said that the business community would share its reservations with the government. If the government declines to accept demands then option to protest is open, he added.

The FPCCI president said that budgetary measures had would create hardship for all including business community as well as general public.

The national chamber has identified many reservations on the budget 2019/2020. The apex chamber has constituted a committee on the Finance Bill, 2019.

Engr. Daroo Khan demanded the government to restore sales tax zero-rating for export sector. Further, he pointed out that hike in tariff of gas and electricity would also make difficult for business to continue.

He suggested the government that if it had been decided to abolish the zero rate regime then there must be assurance of releasing refunds.

He also demanded the government to restore provision of audit once in three years as Finance Bill proposed to empower tax officials to conduct audit of a taxpayer any or every year.

S M Muneer, leader of business community, however, said that the business community would not protest without meeting with government authorities.

He said that a delegation of FPCCI would hold talk with Dr. Abdul Hafeez Shaikh, advisor to Prime Minister on Finance and Revenue on June 20.

Muneer said that massive depreciation of Pak Rupee had created difficulties for businesses.

Zubair Tufail, former FPCCI president, said that the proposed budget would encourage smuggling of goods.

He said that banks should be asked for instant processing of refunds in case the zero-rating was abolished.

Mirza Ikhtiar Baig, business leader, said that the business community was meeting with people in the government and opposition.

He said that a delegation of Pakistan Peoples’ Party headed by its chairman Bilawal Bhutto Zardari was visiting FPCCI on June 22, 2019. But we are meeting first with the government tomorrow (June 21), he added.

June 19, 2019
Law proposed to end corruption in Pakistan Customs

KARACHI: The government has decided to take stern action against officials of Pakistan Customs, who are involved in corruption or corrupt practices.

A new section 156A to the Customs Act, 1969 has been proposed through Finance Bill, 2019 to initiate criminal proceedings against officials involved in accepting bribe or corruption.

According to EY Ford Rhodes Chartered Accountants Firm said that the Finance Bill 2019 seeks to insert a new Section 156A in the Act whereby the FBR may prescribe rules to initiate criminal proceedings against its officials who willfully and deliberately commits or omits an act which results in personal benefit or undue advantage to the officials or the taxpayer or both.

June 19, 2019
Businessmen taken onboard to remove anomalies in Finance Bill 2019

ISLAMABAD: Federal Board of Revenue (FBR) has constituted an anomaly committee comprising members from business community to give their input in removing irritants in the Finance Bill, 2019.

The FBR issued an office order in this regard on Tuesday to identify and remove the technical and legal anomalies in the Finance Bill 2019. The committee shall be comprised of the following members:

Muhammad Ali Tabba, Chairman

Muhammad Javed Ghani, Member Customs – Policy, Co-Chairman.

Following members are also the part of the committee:

President FPCCI

CEO Pakistan Business Council

Secretary General OICCI

Chairman APTMA

President KCCI

President LCCI

President KPK Chamber

President Quetta Chamber

Ali Habib

Anjum Nisar, Former President KCCI

Ziad Bashir

The committee will review the anomalies identified and submitted; and to advise FBR on removal of anomalies.

Technical and legal anomalies can be submitted on or before June 21, 2019

June 18, 2019
FBR sets up Finance Bill 2019 anamoly committee

ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday constituted an anamoly committee comprising tax professionals to identify legal flaws in Finance Bill 2019.

Ashfaq Tola has been nominated chairman of the committee. Hamid Atiq Sarwar, Member IR Policy, FBR has been nominated as vice chairman.

Other members of the committee are included: Abid Shaban, Zia Awan, Muhammad Awais, Asif Haroon, Abdul Qadir Memon, Amer Javed, Iftikhar Taj and Muhammad Rafique.

The committee shall it’s report on June 21, 2019.

June 18, 2019
Powers to form Customs tribunal shifted to Prime Minister

KARACHI: The Finance Bill 2019 has proposed to shift the powers to form Customs Appellate Tribunal from the federal government to the Prime Minister.

According to interpretation by EY Ford Rhodes Chartered Accountants Firm, the Finance Bill 2019 sees to substitute Section 194 of Customs Act, 1969, which empowers the federal government to form, regulate and conduct the affairs of the Appellate Tribunal.

“The Bill seeks to shift these powers to the Prime Minister,” it added.

The Appellate Tribunal shall consist of a Chairman, judicial and accountant members.

The terms and conditions of appointment of the chairman and judicial and technical members (this may be referred to accountant members) are proposed to be determined by the Prime Minister.

Further, the appointment of a technical member shall be for a period of two years. The Bill seeks to explain the criteria for appointment of judicial members and accountant members as under:

A judicial member of the Appellate Tribunal shall be appointed, unless such person:

(a) has been a judge of a High Court;

(b) has exercised the powers of a District Judge and is qualified to be a judge of the High Court; or

(c) is or has been an advocate of a High Court and is qualified to be appointed as a judge of a High Court:

Further, the person who is or has been an advocate of High Court shall not be appointed as judicial member unless selected in accordance with the Civil Servants Act, 1973 (LXXI of 1973) and the Federal Public Service Commission Ordinance, 1977 (XLV of 1977).

An accountant member of the Appellate Tribunal shall be appointed, unless such person:

(a) is an officer of Pakistan Customs Service equivalent in rank to the Member of FBR or Chief Collector of Customs or Director General; or

(b) is a Collector or Director or Chief of the FBR having at least three years’ experience in that position.

June 18, 2019
Adjudicating monetary limits of principal appraisers, superintendents enhanced

KARACHI: The government has enhanced monetary threshold of principal appraisers and superintendents for adjudication with condition of reducing time limit to 90 days for deciding cases.

Through Finance Bill 2019, it has been proposed to redefine the monetary threshold of the officers of customs for adjudication. The bill also proposed to abolish the power of assistance collector in adjudicating matters.

According to budget commentary of EY Ford Rhodes, the following powers of adjudication have been proposed as compared with existing powers:

Power of adjudication

Under Section 179 of Customs Act, 1969

(i) Collector: No limit – No change in present power

(ii) Additional Collector: Not exceeding three million rupees – No change in present power

(iii) Deputy Collector: Not exceeding one million rupees – No change in existing power

(iv) Assistant Collector: Not exceeding five hundred thousand rupees: the power of assistance collector proposed to be deleted

(v) Superintendent: Not exceeding fifty thousand rupees: proposed that it should not exceeding one hundred thousand rupees

(vi) Principal Appraiser: Not exceeding fifty thousand rupees: it is proposed it should not exceeding one hundred thousand rupees.

The Finance Bill further seeks to reduce the time period to decide the cases within ninety days instead of existing one hundred and twenty days.

June 17, 2019
Finance Bill 2019: GD filing limit reduced to 10 days

KARACHI: The government has reduced the goods declaration filing limit from 15 days to 10 days by proposing amendment to Section 79 of Customs Act, 1969.

The Finance Bill 2019 has proposed reduction in time limit of filing GD from 15 days to 10 days.

Presently Section 79 of Customs Act, 1969 is as:

79. Declaration and assessment for home consumption or warehousing or transshipment

(1)The owner of any imported goods shall make entry of such goods for home consumption or warehousing or transshipment] or for any other approved purposes, within fifteen days of the arrival of the goods, by,-

(a) filing a true declaration of goods, giving therein complete and correct particulars of such goods, duly supported by commercial invoice, bill of lading or airway bill, packing list or any other document required for clearance of such goods in such form and manner as the Board may prescribe; and

(b) assessing and paying his liability of duty, taxes and other charges thereon, in case of a registered user of the Customs Computerized System:

Provided that if, in case of used goods, before filing of goods declaration, the owner makes a request to an officer of customs not below the rank of an Additional Collector that he is unable, for want of full information, to make a correct and complete declaration of the goods, then such officer subject to such conditions as he may deem fit, may permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration after having assessed and paid his liabilities of duties, taxes and other charges:

Provided further that no goods declaration shall be filed prior to ten days of the expected time of arrival of the vessel.

Explanation.- For the purposes of this clause, the assessment and paying of duty, taxes and other charges in respect of transshipment shall be at the port of destination.

(2) If an officer, not below the rank of Additional Collector of Customs, is satisfied that the rate of customs duty is not adversely affected and that there was no intention to defraud, he may, in exceptional circumstances and for reasons to be recorded in writing, permit, substitution of a goods declaration for home consumption for a goods declaration for warehousing or vice versa.

(3) An officer of Customs, not below the rank of Assistant Collector of Customs, may in case of goods requiring immediate release allow release thereof prior to presentation of a goods declaration subject to such conditions and restrictions as may be prescribed by the Board.

The Bill, however, also proposed the penalty for non-filing of the declaration within the stipulated time is proposed to be amended from Rs15,000 to Rs5,000 per day for the initial five days of default and at a rate of Rs10,000 per day for each day of default thereafter.

June 17, 2019