Pakistan’s banking system experienced a significant dip in deposits, with a massive withdrawal of approximately Rs711 billion in July 2019, following a record high in bank deposits by the end of June 2019.
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General education not taxable under training services: SRB
KARACHI: Sindh Revenue Board (SRB) on Monday said that general education services are not taxable under ‘training services’ which is introduced through Sindh Finance Act, 2019.
The provincial revenue authority issued clarification on the issued after receiving objections from the stakeholders for explaining the training services.
The SRB said; “The general education services like pre-primary, primary, elementary, secondary (matric), higher secondary (intermediate), general certificate of secondary education, international general certificate of secondary education, college or university education (leading to degrees like BA, BSC, B.S, B.Com, BBA, BE, Bed, B Tech, LLB, MBBS, MA, MSc, MS, MCS, M Com, MBA, M Ed, LLM, M Phil, MCPS, FCPS, PhD, special education for handicapped children and education under the adult literacy program are not taxable as training services of tariff heading 9848.000 of the Second Schedule to the Sindh Sales Tax on Services Act, 2011.”
Earlier, Deloitte Yousf Adil, Chartered Accountants urged the SRB for clarification regarding applicability of Sindh Sales Tax on education related activity under Tariff Heading 9848.000 (training services).
The chartered accountants firm said that through the Sindh Finance Act, 2019, the training services had been brought to tax net under the tariff heading of 9848.000 with effect from July 01, 2019.
Through notification issued July 01, 2019, the rate of Sindh Sales Tax on training services had been reduced to five percent with not input tax adjustment.
The chartered accountants firm pointed out that there was confusion regarding chargeability of SST on education related services provided or rendered by schools, colleges, institutes and universities as chartered by the government or related bodes such as Higher Education Commission etc.
The chartered accountants firm had urged the provincial revenue authority to clarify the scope of tariff heading specifically keeping the scenario of general education services.
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SBP sets maximum payment limits for board members of banks, DFIs
KARACHI: The State Bank of Pakistan (SBP) on Saturday amended Prudential Regulations G-1 and sets maximum limits for payment to board members of banks and Development Financial Institutions (DFIs).
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Investment into premium prize bonds post 46pc growth
KARACHI: The investment in premium prize bonds of Rs40,000 denomination has increased by over 46 percent as the government stopped the circulation of bearer bonds of same denomination and launched campaign to document the economy.
According to statistics released by State Bank of Pakistan (SBP) the total investment into premium prize bonds of Rs40,000 denomination increased to Rs7.665 billion by end of June 2019 as compared with Rs5.245 billion in same month of the last year.
The premium prize bonds were launched by the government in March 2019 with the aim to bring undocumented money into the mainstream economy.
According to salient features of the premium bonds issued by Central Directorate of National Savings (CDNS):
— The bond is available in Rs40,000 denomination
— Registered in the name of investor.
— Quarterly prize money draws as well as bi-annual profit payment.
— For individuals, public and private sector institutions except banks, insurance companies and mutual funds.
— Direct credit and prize money and profit in investors bank account.
— No Application Forms required for claiming prize money & profit.
— Unlimited Investment and Tenure.
— WHT applicable and Exempt from Zakat.
— Transferable and Pledge-able.
— Can be purchased through Cash, Cheque, Pay-Order and Bank Draft
— Can be purchased from offices of State Bank of Pakistan Banking Services Corporations.
The growth in premium prize bonds investment is much faster in the month of June 2019 as compared with the previous month due to the government announcement to stop the circulation of bearer bonds of Rs40,000 denomination.
The investment in Rs40,000 prize bonds denomination grew by 24 percent to Rs7.665 billion in June 2019 as compared with Rs6.17 billion in May 2019.
The government on June 24, 2019 notified withdrawal of Rs40,000 denomination national prize bonds from circulation.
On the same date the State Bank of Pakistan (SBP) issued instructions to chief executives and banks of all banks for compliance.
The SBP instructed:
(a) National Prize Bonds of Rs40,000 denomination shall not be sold after June 24, 2019 and will not be encashed/redeemed after March 31, 2020.
(b) No further draws of Rs40,000 denomination national prize bonds shall be held.
(c) Cash payment for encashment of bonds is ‘Not’ allowed. However, the bond holder(s) shall have the following options to replace/encash the bonds:
1. Conversion of Premium Prize Bonds (Registered)
2. Replacement with Special Saving Certificate (SSC)/Defence Savings Certificate (DSC)
3. Encashment at Face Value.
The SBP also issued Standard Operating Procedure (SOP) for conversion to premium prize bonds (registered).
i. The bonds can be converted to premium prize bonds (registered) through the 16 field offices of SBP Banking Services Corporation, and authorized branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited and Bank Alfalah Limited.
ii. The bond holder shall be required to submit a written request for conversion of bearer bonds to premium prize bonds (registered) to be registered in his/her name on the prescribed application form.
iii. The bond holder shall also be required to submit prescribed application form for registration/purchase of premium prize bonds as per the procedure in vogue.
The SBP also issued procedure for replacement with Special Saving Certificate (SSC)/Defence Savings Certificate (DSC).
i. The bonds can be replaced with SSC/DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Saving Centers.
ii. All authorized commercial banks shall therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.
iii. The bond holder shall also be required to submit application form for purchase of SSC/DSC as per the prescribed procedure.
The SBP issued procedure for encashment at face value and said that the bonds will only be encashed by transferring the proceeds to the bond holder’s bank account through the 16 field offices of SBP banking services corporation as well as the authorized commercial bank branches.
The SBP further said that all commercial banks shall receive request for encashment of bearer bonds on the prescribed application form.
The SBP said that the prize bonds encashed/replaced by general public may be surrendered to concerned SBP BSC office through respective regional office of the commercial bank. For the purpose, the regional office may intimate the SBP BSC office three days in advance so that necessary arrangements for receipt of the bonds can be made.
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FBR notifies last date of payment, sales tax return filing by electricity, gas companies
ISLAMABAD: Federal Board of Revenue (FBR) has notified date for payment and filing monthly sales tax returns by electricity and gas distribution companies.
The FBR amended Rule 18 of Sales Tax Rules, 2006 through SRO 918(I)/2019 dated August 07, 2019, under which registered persons are required to file monthly sales tax electronic returns.
According to FBR, the due date of payment for electricity distribution companies is 18th of the month following the tax period in which the bill or invoice has been issued for the supplies made during the billing period. While the last date for filing returns electronically is 21sth day following the 18th day (for payment).
For Independent Power Producers, the FBR said that the last date of payment is 22nd day of the month following the tax period of which sales tax invoice relates. The last date for electronic filing of sales tax return is 25th day following the 22nd day (for payment).
In case of gas transmission and distribution companies, the last date of payment is 15th of the month following the tax period in which the bill or invoice has been issued for the supplies made during the billing period. The last date for electronically filing sales tax returns is 18th day following the 15th day (for payment).
The FBR said that the last date of depositing sales tax collected on supplies by petroleum exploration and production companies is 18th of the month following the tax period in which supplies were made. While the last date for filing sales tax return is 21st day following the 18th day (for payment).
The CNG dealers are required to make payment and file sales tax returns on quarterly basis. The FBR said that the last date of payment in case of CNG dealers is 15th day of the month following the end of quarter of the financia year. The last date for electronically filing sales tax return is 18th day following the 15th day (for payment).
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Investment in saving certificates rises by 19 percent to Rs2,217 billion
KARACHI: The investment in saving certificates has registered 19 percent growth to increase Rs2,217 billion in the last fiscal year owing to better rate of interest and safe investment avenue.
The data released by State Bank of Pakistan (SBP) revealed that the investment increased to Rs2,217 billion by June 2019 as compared with Rs1,865 billion by end of same month of 2018.
Experts said that the weak economic situation and continuous increase in interest rate by the central bank encourage investment in saving schemes.
According to the central bank data the investment in the certificates issued by National Saving Center (NSC) rose by 20 percent to Rs2,096 billion by June 2019 as compared with Rs1,749 billion in the same month a year ago.
The central bank had adopted monetary tightening stance since May 25, 2018 and pushed up interest rates to 13.25 percent from 6 percent during the past eight consecutive policy announcements.
The market sources further elaborated that the deterioration in stock market was also a major factor behind significant investment in the government securities.
As per the data the investment in the Defence Saving Certificates (DSC) increased to Rs393.58 billion by June 2019 as compared with Rs336.24 billion in the same month of last year.
Meanwhile, the investment in Special Saving Certificates (SSC) grew to Rs413.71 billion fro Rs381.87 billion in the period under review.
The data further showed that the investment in Regular Income Certificates posted sharp growth of 41 percent to Rs489.62 billion by June 30, 2019 as compared with Rs347.532 billion in the corresponding month of the last year.
Further the investment in Behbood Saving Certificates grew to Rs914.46 billion from Rs794 billion.
The market sources said that the government drive to document the economy and announcement to stop the circulation of Rs40,000 denomination prize bonds encouraged investors to divert the investments into saving schemes.
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Pakistan cuts trade ties with India; notifications issued
ISLAMABAD: Pakistan has completely cut trade ties with India as the ministry of commerce issued notification for banning import and exports with the neighboring country.
The ministry of commerce on Friday issued SRO 927(I)/2019 and SRO 928(I)/2019 to impose ban on trade with India.
Through SRO 927 (I)/2019, the ministry of commerce amended Import Policy Order, 2016 and included India in the list of countries having not trade links. Earlier, only one country i.e. Israel was on the list.
With the amendment the goods of Indian or Israeli origin or imported from India or Israel are prohibited.
Similarly, through SRO 928(I)2019, the ministry of commerce also restricted exports to India.
The ban has been imposed on trade with India following decision taken at the National Security Committee (NSC) against atrocities of India on Kashmiri people.
Prime Minister Imran Khan on Wednesday chaired meeting of the National Security Committee at Prime Minister’s Office.
The meeting was attended by Foreign Minister, Defence Minister, Interior Minister, Minister for Education, Minister for Human Rights, Minister for KA&GB, Law Minister, Adviser Finance, CJCSC, COAS, CAS, CNS, SAPM on Information, DG-ISI, DG-ISPR, Secretary Foreign Affairs and other senior officers.
The Committee discussed situation arising out of unilateral and illegal actions by the Indian government, situation inside Indian Occupied Jammu and Kashmir and along LOC.
The Committee decided to take following actions:- 1. Downgrading of diplomatic relations with India. 2. Suspension of bilateral trade with India. 3. Review of bilateral arrangements. 4. Matter to be taken to the United Nations, including the Security Council. 5. Independence Day this 14 August to be observed in solidarity with brave Kashmiris and their just struggle for their right of self-determination. 15th August will be observed as Black Day.
PM directed that all diplomatic channels be activated to expose brutal Indian racist regime, design and human rights violations. PM directed Armed Forces to continue vigilance.
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SBP imposes penalty on four banks for violating AML/KYC
KARACHI: The State Bank of Pakistan (SBP) has imposed penalty of Rs184.64 million upon four commercial banks for violating laws related to Anti-Money Laundering (AML)/Know Your Customer (KYC).
The central bank on Thursday said that these penalty amount was imposed during the month of July 2019 against banks included: The Bank of Punjab; JS Bank Limited, Bank Al Habib Limited and Soneri Bank.
The SBP imposed penalty of Rs13.072 million against The Bank of Punjab on July 15, 2019 for violating in areas of foreign exchange operations.
In addition to penal action, the bank has been advised to improve its internal processes, the SBP said.
The Bank of Punjab was again penalized with Rs16.119 million on July 18, 2019 for violating in areas of AML/KYC, unclaimed deposits.
In addition to penal action, the bank has been advised for improvements in the areas of AML/KYC, the central bank added.
The SBP penalized JS Bank Limited with penalty amount of Rs48.211 million on July 23, 2019 for violating in areas of AML/KYC.
In addition to penal action, the bank has been advised to conduct a thorough review of relationship accounts, the SBP said.
The SBP imposed penalty of Rs51.75 million upon Bank Al Habib Limited on July 25, 2019 for violating in areas of AML/KYC, FX Operations.
In addition to penal action, the bank has been advised to update its systems and processes, and provide appropriate trainings to the concerned officials, the SBP said.
The SBP imposed penalty of Rs55.48 million upon Soneri Bank Limited on July 25, 2019 for violating in areas of AML/KYC, Asset Quality, FX Operations.
In addition to penal action, the SBP advised the bank to improve areas of AML/KYC and credit risk monitoring.
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FBR streamlines anti-benami regime to stop white collar crimes
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued official note to streamline Anti-Benami Regime to stop white collar crimes.
The FBR said that Benami Transactions, entailing the phenomenon of Benami moveable and immoveable properties, Bank A/Cs, Luxury Vehicles, off shore investments and stocks & shares is one of the biggest economic and financial threats, currently camouflaging the rampant corruption in our society, deadly confronting Pakistan’s taxation system and practically compromising the economic viability of the country.
Due to non existence of a special Law and Rules on Benami all Anti-corruption agencies have so far failed in tracing and documenting the real/beneficial owners and criminals went scot free.
In order to combat the menace of Benami and take the spirit of accountability forward Federal Government has operationalized Benami Transaction (Prohibition), Act, 2017, which was dormant since February, 2017.
Federal Board of Revenue has been assigned the administration and implementation of this new stream of Financial Crime Investigation & Enforcement.
This office order is aimed at streamlining of newly introduced Anti-Benami Regime in Pakistan.
I. Organizational Framework: Anti Benami Regime Pakistan.
FBR, as the parent/administering department envisages two distinct streams of functions for this White Collar Crime Investigation Agency: independent Authorities and supporting Administrative Oversight.
Both streams shall co-exist, though mutually exclusive yet complementing each other. For the legal functions, to be conducted by different Anti-Benami Authorities, their operational independence is fully protected under Benami Transaction (Prohibition) Act, 2017.
However FBR’s administrative facilitation, financial support and organizational oversight are essential for sustainable field operations, development and strengthening of this newly launched regime.
Authorities Core Functions Support Functions Initiating Officer (BS-18) -Initiation of Anti-Benami Proceedings -Attachment of Benami Properties -Inquiries and Investigations
-Filing of Reference to Adjudication Authority.
-Filing of Appeals
-Enforcement of various provisions of said Act.
-Examination and Analysis of complaints and references by
different agencies
– Development of Research &
Analysis Cells
-Data Archiving
-Services of Notices
-Litigation Management
Approving Authority (BS-20) -Highest Legal Authority at Anti-Benami Field formations -Supervisory/Administrative authority at Benami Zones
-Granting approval of all major legal and Enforcement functions
-Inherent powers u/s 16
-Confiscation of benami properties
-Administrative and Financial head of Anti-Benami Zone -Focal office for all correspondence with FBR and other Anti-Benami authorities
-Addressing genuine grievances and complaints
-Performance Management and Reporting
-Reposing officer in the cases of Initiating officers and Administrators
-Linkages with FBR portal and other economic & financial data bases
Administrator (BS-17) -Management of Attached properties -Management of Confiscated properties -Possession of benami properties
-Confiscation of benami properties
-Disposal of Confiscated properties
-Ware Housing in the cases of attached/confiscated movable properties
-Intelligence & Vigilance function of benami Zones -Spear heading all enforcement activities
-Maintenance of Discipline and motivation in field workforce
Adjudicating Authorities (BS-21/22) -Adjudication of References filed by Initiating Officers -Inquiries and investigation
-Attachment powers
-Statutory powers to add or delete any person arrayed as accused or property labeled as benami
– Passing Confiscation Order
-Constitution of Adjudication benches
-Administration of Officers and
Employees of Adjudication Authority
-Advice to the Federal Government
on Adjudication related matters
-Development of Case Studies -Critical References filed by Benami Zones
-Administration of justice
-Periodical Review of Law, Rules and patterns of crime
A. Authorities: Benami Transaction (Prohibition) Act, 2017 provides detailed description and powers & functions of various authorities. FBR has already notified the jurisdiction and appointment of field authorities at Islamabad, Lahore and Karachi.
In addition to their statutory functions, FBR deems it necessary to assigns field Benami authorities some support functions as well.
These support functions would help in realizing the desired results of this legislation and seamless implementation of this new regime.
B. Administrative Oversight: Director General-Anti Benami Initiative (DG- ABI)
In order to facilitate the Authorities and to ensure efficient and effective implementation of Anti-Benami law the office of DG-ABI is being raised to ensure smooth and effective implementation and enforcement of Anti-Benami Act, 2017. Without any interference in their respective legal domains, this administrative structure would provide the following support to Anti-Benami Zones.
i) DG-ABI would act as FBR’s focal office for proper implementation of Benami Transaction (Prohibition) Act, 2017. DG-ABI would act as a bridge between Anti-Benami Zones and FBR, between Zones and Adjudication Authorities and among all the Anti-Benami Zones as well.
ii) Establishment of Administrative hierarchy for the newly created Anti-benami Zones at Islamabad, Lahore and Karachi.
iii) Logistic Support, Financial Back up & autonomy and capacity building for Anti-Benami Zones.
iv) Development of uniform operational SOPs for transparent functioning of field authorities.
v) Contact point for all external agencies interacting with FBR in Benami related matters. Receipt, analysis and dissemination of benami related complaints, data, information and reference from all external Quarters.
vi) Development of linkages between Anti-benami authorities and FBR’s portal and external Data Bases. Central Data Bank on Benami.
vii) Quantitative Performance Evaluation of Anti-Benami Zones.
Qualitative Evaluation shall be made only after obtaining input from the concerned Adjudication Authority.
viii) Addressing all jurisdiction related issues in the light of FBR’s relevant notifications.
ix) Recommendations for review and amendments in Law, Rules and Procedure, covering Anti-Benami Regime
x) Personnel Management and Litigation
II. Directorate General-ABI: The Organizational structure
i) Directorate General-ABI would comprise a Director General, Director HQs and three Commissioners, Anti Benami Zones at Islamabad, Lahore and Karachi, responsible for their notified jurisdictions.
ii) Directorate General-ABI and its formations would be manned by officers of IRS and staffed by IR Department
III. Reporting Mechanism
i) Administrators and Initiating Officers shall report to their respective Commissioners, Anti-Benami Zones.ii) Commissioners, Anti Benami Zones would be independent in their Legal jurisdictions. For all administrative matters they will be reporting to DG-ABI Islamabad.
iii) DG-ABI would report to the National Coordinator for implementation of Benami Transactions (Prohibition) Act, 2017.
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FBR promotes 30 appraising officers of customs department
ISLAMABAD: Federal Board of Revenue (FBR) has promoted 30 appraising officers to the post of principal appraisers (BS-16) with immediate effect and until further orders, a notification said on Wednesday.
According to notification made available to PkRevenue.com, the following Appraising Officer of Pakistan Customs Department are promoted to the post of Principal Appraiser (BS-16)with immediate effect and until further orders:
Following officers have been promoted to the post of principal officers:
01. Junaid Malik, MCC, Appraisement (East), Karachi
02. Shahrukh Akhlaq Siddiquie, MCC, Appraisement (East), Karach
03. MuhammadNazir Khan, MCC, Gilgit-Baltistan
04. Syed Masoom Raza, MCC, (JIAP), Karachi
05. MuhammadNadeem Butt, MCC, Appraisement (West), Karachi
06. Ghulam Yasin Sabri, MCC, PMBQ, Karachi
07. Altaf Ali Chandio, MCC, Preventive, Karachi
08. Ashique Ali Memon, MCC, Appraisement (East), Karachi
09. Mohammad Yaqoob, MCC, Appraisement (West), Karachi
10. Vaqas Jilani, MCC, Preventive, Lahore
11. Malik Naveed Anwar, Dte. of Post Clearance Audit, Lahore
12. Adnan Khurshid Cheema, MCC, Appraisement (East), Karachi
13. Azeem Manzoor, MCC, Islamabad (He will actualize promotion on return from Ex-Pakistan leave).
14. Saifuddin Khan, MCC, Appraisement, Lahore
15. Muhammad Iftikhar Hussain, MCC, Appraisement (East), Karachi
16. Tariq Aziz S/o Abdul Aziz, MCC, Appraisement (West), Karachi
17. Ms. Nudrat Nawaz, Dte.Gen. of PCA, Islamabad
18. Amir Nasir Ali Khan, MCC, Appraisement (East), Karachi
19. Sarfraz Bangulzai, MCC, Appraisement (East), Karachi
20. Amjad Iqbal, MCC, Appraisement (West), Karachi
21. Raja Waseem Ahmad, MCC, PMBQ, Karachi
22. Zafar Shabbir, MCC, Appraisement (East), Karachi
23. Imtiaz Hussain Khan, Dte. Gen of Valuation, Karachi
24. Farooq Ahmad, MCC, Appraisement (West), Karachi
25. Abdul Hameed, MCC, (Preventive), Lahore
26. Muhammad Afzal, MCC, (Preventive), Lahore
27. Tabasum Shahzad, Dte. of Post Clearance Audit, Lahore
28. Muhammad Ejaz Cheema,Dte. of Intelligence & Investigation (Customs), Lahore
29. Muhammad Yousaf Ansari, MCC, Appraisement, Lahore
30. Ghulam Nabi Zafar, Dte. of Internal Audit(Customs), Lahore
The FBR said that their promotion will take effect from the date of their joining, subject to the condition that no disciplinary proceedings/enquiry is pending against them.
The officers will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deem to be held until further order
The officers already drawing Performance Allowance equal to 100 percent of basic pay will continue to draw it on their promotion.