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Category: National

  • FBR may extend return filing date due to political unrest, floods, IRIS errors

    FBR may extend return filing date due to political unrest, floods, IRIS errors

    KARACHI: Federal Board of Revenue (FBR) may further extend the last date for filing income tax returns for tax year 2022.

    The FBR has already given one date extension from September 30, 2022 to October 31, 2022.

    Previously, the FBR extended the date on the complaints from the stakeholders that many errors on the IRIS portals hampered the return filing activities.

    Although, currently many glitches have been addressed on return filing portal yet a large number of calculation errors still challenging the taxpayers.

    Tax experts said that that long march started by PTI chairman, Imran Khan caused political uncertainty which has adversely affected the business activities in Pakistan

    READ MORE: PTBA seeks clear 90 days for return filing after making portal error free

    Pakistan Tax Bar Association (PTBA) and Karachi Tax Bar Association (KTBA) in different communications with the FBR chairman urged for the extension in last date because of the error in the IRIS portal.

    The experts also said that the IRIS portal is surrounded with many calculation errors which is preventing the taxpayers while filing their income tax returns.

    Therefore, the apex tax body urged the FBR to first remove errors on the portal and then provide statutory time to taxpayers in discharging their national duty.

    The unprecedented flash floods in the country have terribly affected the cash flow of many businesses and receivables of previous fiscal year from several parts of the country.

    The PTBA demanded the tax authorities of providing clear 90 days for return filing from the date when the portal is error free.

    READ MORE: KCCI demands one month date extension for return filing

    The increase in the last date will facilitate the taxpayers and business community at large scale to file income tax return on the error free IRIS portal.

    The PTBA also suggested that timely decision be appreciated by the taxpayers/legal fraternity, who are working very hard day & night by playing their part towards the legal responsibility for contributing towards national exchequer.

    It will also help in the collection of taxes at the appropriate time.

    READ MORE: Calculating property valuation uphill task in completing tax return: Rehan Jafri

  • Jazz supports breast cancer awareness campaign

    Jazz supports breast cancer awareness campaign

    KARACHI: Aimed at raising awareness on breast cancer, Jazz, Pakistan’s leading digital operator and the largest internet and broadband service provider, conducted month-long campaigns to drive reinforcement for prevention, reminder of periodic checkups, and educate the masses including its own employees.

    Pakistan has the highest incidence of breast cancer among Asian countries; one in nine women is at risk of being diagnosed with breast cancer, and 40,000 women die of breast cancer every year, out of which only 19,000 women are diagnosed with breast cancer.

    Jazz offices and experience centers were lit up pink to serve as a reminder and draw attention to this critically important message, encouraging women to have regular check-ups and destigmatize the taboos associated with breast cancer.

    Additionally, the company collaborated with Pink Ribbon to organize nationwide awareness sessions for all branches and joined hands with Shaukat Khanum Memorial Cancer Hospital and Research Centre for SMS and billboard awareness campaigns.

    “Jazz is committed to empowering Pakistani women through the power of the internet by providing digital access to effective, quality essential health care services. With over 21,000 women remaining undiagnosed with breast cancer, our campaigns were aimed at creating conversation around this topic. Our thoughts and prayers remain with those who have lost their lives fighting against breast cancer,” said Sabahat Bokhari, Head of D&I, Jazz.

    Shaukat Khanum, Pink Ribbon, and ITTEHAD teams also visited Jazz offices to highlight the importance of breast cancer early detection, destigmatizing the examination, timely diagnosis, and efficient treatment methods. Jazz has provided employees with Pink Cards (valid for family members as well), which offer females up to 50% discount on various healthcare tests such as hormone profiles, and mammograms, among other women-related medical tests.

  • Pakistan reviews petroleum prices for next fortnight amid PTI’s long march

    Pakistan reviews petroleum prices for next fortnight amid PTI’s long march

    ISLAMABAD: Pakistan is set to review petroleum prices on October 31, 2022, as the government is facing challenges including long march initiated by leading opposition party and rising benchmark Brent crude rates in international markets.

    The present coalition government led by PML-N is under immense pressure since coming into power in April 2022. This government is mainly criticized for sky rocket prices of all essential items bringing inflation to record levels. The present government has opportunity to attract masses by allowing sharp cut in petroleum prices for the next fortnight starting from November 01, 2022.

    READ MORE: Pakistan keeps petroleum prices unchanged from October 16, 2022

    On the other hand, Imran Khan, Chairman, Pakistan Tehreek I Insaaf (PTI) launched long march on October 28, 2022 from Lahore demanded the present government to announce general election as the country on the brink of default and masses were witnessing the brunt of high prices.

    The present government has annoyed people through its last decision to keep the prices of petroleum products unchanged. Experts had opinion that the government had room to give benefit by slashing the prices.

    However, the prices were kept unchanged from October 16, 2022 at the level of October 01, 2022. Previously, on September 30, 2022 following changes in petroleum prices were announced:

    The rate of petrol has been reduced by Rs12.63 per liter to Rs224.80 from Rs237.43.

    The price of high speed diesel has been cut by 12.13 per liter to Rs235.30 from Rs247.43.

    The rate of Kerosene oil has been slashed by Rs10.19 to Rs191.83 from Rs202.02.

    The price of light diesel oil has been reduced by Rs10.78 to Rs186.50 from Rs197.28.

    READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022

    The experts believed that now the government would have fewer options to cut the prices of petroleum products due to rising global oil prices and depreciation in currency value at home.

    Benchmark US Brent soared to $95.77 per barrel as of October 28, 2022. The commodity witnessed an increase of over $5 during the month of October 2022.

    Pakistan is the net importer of petroleum products to meet the domestic demands. Oil import bill of the country went up to $4.86 billion during first quarter (July – September) of the current fiscal year as compared with $4.59 billion in the corresponding quarter of the last year.

    On the other hand the rupee once against started depreciation due to political instability and falling foreign exchange reserves. Although, the SBP recently received $1.17 billion from the International Monetary Fund (IMF) to buffer its foreign exchange reserves and support the local currency. Yet the scheduled repayment gradually dry to foreign exchange reserves position.

    READ MORE: Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates

    Most recently, the SBP again received $1.5 billion from the Asian Development Bank (ADB) to strengthen the foreign exchange reserves position. However, the repayment pressure and rising political noise the rupee unable to show resistance against the dollar.

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

    READ MORE: New petroleum prices in Pakistan effective from September 21, 2022

  • Meezan Bank donates Rs35 mn to Indus Hospital for power project

    Meezan Bank donates Rs35 mn to Indus Hospital for power project

    KARACHI: Meezan Bank– Pakistan’s leading Islamic bank has donated Rs35 million to Indus Hospital & Health Network for installation of a solar panels system.

    The initiative is part of the Bank’s Corporate Social Responsibility and Sustainability initiatives for 2022 and will provide financing to cover part of the 1.2MW solar power project being installed on the hospital’s rooftop.

    The system financed by the Bank will generate nearly 300 KW of electricity, reducing approximately 114,000 Kg of Carbon dioxide emissions per annum, which is equivalent to taking over 25 gasoline-powered vehicles off the road for one year. 

    With the proposed solar panel system installation, The Indus Hospital (TIH) would be able to reduce its rising electricity expenses while channelling those funds towards patients’ welfare.

    The collaboration between both the parties promises a shared sustainable future for the community at large, benefitting healthcare of individuals – thus fulfilling one of the core objectives defined in the Bank’s CSR policy.

    Ariful Islam – Deputy CEO, Meezan Bank handed over the cheque on Meezan Bank’s behalf to Dr. Abdul Bari Khan – founder Indus Hospital & Health Network. Senior management team members from both the organizations were also present at the occasion.

    Speaking about the initiative, Ariful Islam said: “Meezan Bank’s accelerated focus on renewable energy initiatives is part of its agenda to play a deeper role in climate action and is aligned with the United Nations Sustainable Development Goals (SDGs).

    “This initiative promises to increase energy security and efficiency for The Indus Hospital and reaffirms our commitment towards decarbonization while also enabling healthcare access to the masses.”

  • KTBA demands perfect tax return form before setting filing deadline

    KTBA demands perfect tax return form before setting filing deadline

    The Karachi Tax Bar Association (KTBA) has strongly criticized tax authorities for their handling of unresolved issues surrounding the filing of income tax returns for the tax year 2022.

    (more…)
  • Pharma industry agrees to provide paracetamol at reduced prices

    Pharma industry agrees to provide paracetamol at reduced prices

    ISLAMABAD: Federal Minister Senator Mohammad Ishaq Dar on Wednesday said that the pharma industry agreed to provide paracetamol products at reduced prices.

    He said this during a meeting with heads of pharmaceutical companies involved in the production of paracetamol products, a Finance Ministry press release said. The meeting was also attended by the SAPM on Finance Tariq Bajwa.

    READ MORE: Manufacturing Panadol on negative margins unsustainable: GSK Pakistan

    The meeting reviewed the maximum retail price and shortage of paracetamol products in the country and discussed modalities for smooth supply and availability of paracetamol products in the markets at affordable rate.

    It was informed that rising import prices of pharmaceutical raw materials and increasing production costs are increasing the shortage of essential medicines in the market.

    The pharmaceutical heads demanded a high increase in the prices of paracetamol products to overcome the shortage.

    READ MORE: GSK confirms raid related to Panadol shortage

    In order to resolve the issue of shortage of paracetamol products and to support local manufacturers, the chair discussed in details with the stakeholders and following reduced prices of paracetamol products have been agreed upon by the Pharma industry against their demanded prices.

    The production of Paracetamol products has been started by the Pharmaceutical manufacturers.

    The Pharma industry agreed upon the reduced prices of paracetamol (plain) 500 mg tablet at Rs 2.35; paracetamol (extra) 500mg at Rs. 2.75 and Syrup at Rs. 117.6, which is almost half of the price increase demanded by them.

    The Pharma industry demanded the prices of paracetamol (plain) 500 mg tablet at Rs 2.67; paracetamol (extra) 500mg at Rs. 3.32 and Syrup at Rs. 117.6.

  • New deadline for filing income tax returns ends on Oct 31, 2022

    New deadline for filing income tax returns ends on Oct 31, 2022

    About six days are left in the new deadline given by the Federal Board of Revenue (FBR) for filing income tax returns. The revenue body extended the date for filing annual returns up to October 31, 2022.

    The last date was September 30, 2022 for filing income tax return for tax year 2022. However, due to various issues on the online portal and complaints of stakeholders the date was extended.

    The FBR extended the date for filing income tax returns for tax year 2022 up to October 31, 2022 through Circular No. 16 of 2022.

    Stakeholders are still not satisfied with the performance with the online portal of the FBR for filing income tax returns.

    Tax practitioners said that subject to some exemptions, tax rate of 20 per cent had been imposed on deemed income calculated at five per cent of fair market value of capital assets situated in Pakistan.

    The fair market has been defined in Section 68 of the Income Tax Ordinance, 2001 and has also been notified by the FBR through number of SROs.

    READ MORE: No audit of IT sector due to fixed tax regime: FBR chairman

    The tax practitioners pointed out that filing income tax returns by providing details of immovable property under Section 7E were uphill task and many returns were not completed due to cumbersome procedure.

    Senior tax officials, however, said that the return filing portal was functioning smoothly and large number of taxpayers had already discharge their national duty by filing their returns.

    They said that the all the taxpayers other than corporate taxpayers are required to file annual return of income for tax year 2022 by October 31, 2022.

    They said that taxpayers including salaried persons, business individuals, association of persons (AOPs) and companies other than having account year July to June are required to file the return of income.

    READ MORE: Electricity withholding tax not applicable on ATL domestic consumers

    The corporate entities having financial year between July 01 to June 30 are required to file their income tax returns by December 31 every year.

    The FBR through SRO 978(I)/2022 dated June 30, 2022 issued income tax return form for tax year 2022 giving statutory time to taxpayers for making compliance in filing of return.

    Section 14 of Income Tax Ordinance, 2001, highlighted the categories of taxpayers, who are required to file their annual return of income and wealth statement.

    According to Income Tax Ordinance, 2001, following class of taxpayers are required to file return of income:

    READ MORE: Tax rates on goods, passenger transport vehicles during 2022-2023

    — every company

    — every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year

    — any non-profit organization as defined in clause (36) of section 2;

    — every person whose income for the year is subject to final taxation under any provision of this Ordinance

    Any person not covered by above clauses are also required to file return of income who,—

    (i) has been charged to tax in respect of any of the two preceding tax years;

    (ii) claims a loss carried forward under this Ordinance for a tax year;

    READ MORE: FBR notifies tax rates on brokerage, commission during 2022-2023

    (iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    (iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

    (v) owns a flat having covered area of two thousand square feet or more located in a rating area;

    (vi) owns a motor vehicle having engine capacity above 1000 CC;

    (vii) has obtained National Tax Number; or

    (viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;

    (ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; or

    (x) is a resident person being an individual required to file foreign income and assets statement under section 116A.

    READ MORE: Non-ATL to pay 200% more tax on motor vehicle purchase during 2022-2023

    The FBR said that filing of income tax return is also mandatory for persons or classes of persons notified by the Board with the approval of the Minister in-charge.

    It further said that return of income is also mandatory for every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.

  • Last date extended for exchanging bearer prize bonds to June 30, 2023

    Last date extended for exchanging bearer prize bonds to June 30, 2023

    ISLAMABAD: The federal government on Tuesday announced to extend the last date for exchanging / converting the bearer prize bonds up to June 30, 2023.

    The bearer prize bonds with denominations of Rs40,000/-, Rs25,000/-, Rs15,000/ and Rs7,500 were expired on June 30, 2022. However, there is huge amount unclaimed against these bearer bonds and people complained for not providing sufficient time for exchanging the bonds.

    READ MORE: Pakistan-issued prize bonds expire on June 30, 2022

    The finance division through various notifications notified the date extension up to June 30, 2023 for the bearer prize bonds.

    The finance ministry launched the withdrawal of the unregistered prize bonds in a phased manner. The federal government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds. Similarly, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds. In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.

    READ MORE: SBP directs banks to accept bearer prize bonds

    Since June 2019 the government repeatedly extended the date for exchanging the bearer bonds. Previously, the last date for exchanging the unregistered bonds was December 31, 2021.

    The government is aiming to document the bearer bonds so the exchanging the unregistered bond with cash has been prohibited. The ministry of finance issued various procedure to convert the bond without exchanging with the cash.

    READ MORE: Prize bond (bearer) holders given 3 months to document

    The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation (BSC), and 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.

    READ MORE: History of Prize Bonds in Pakistan

    The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks, and the National Savings Center.

    The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP BSC as well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

  • SBP announces last date to exchange old design banknotes

    SBP announces last date to exchange old design banknotes

    State Bank of Pakistan (SBP) on Tuesday said that old design banknotes of Rs10, 50, 100 and 1,000 are exchangeable till December 31, 2022.

    The central bank said it is the sole issuer of banknotes in the country ensuring adequate supply of good quality banknotes across the country is amongst its key strategic goals.

    SBP collects soiled and unfit banknotes from the market and replaces them with fresh banknotes. Like other central banks, SBP issues new series of banknotes from time to time and demonetizes the earlier series with the approval of Federal Government.

    Further, the approval for demonetization of banknotes is granted by Federal Cabinet on the recommendations of SBP Board in terms of section 25(2) of SBP Act, 1956.

    The issuance of new series and demonetization of the old design banknotes helps central banks in checking counterfeiting and ensuring the integrity of banknotes in circulation.

    The new series of banknotes was issued from 2005 to 2008 and the old design banknotes have been slowly phased out from circulation. The Federal Government has therefore decided to demonetize old design banknotes of Rs 10, 50, 100 and 1000. These notes have ceased to be Legal Tender effective from 1st December 2016.

    The Old Design Banknotes of Rs. 10, 50, 100 and 1000 are exchangeable from the offices of the SBP Banking Services Corporations up till 31st December 2022.

    These banknotes are exchangeable from SBP BSC Offices located at Karachi, Lahore, Peshawar, Quetta, Islamabad, Rawalpindi, Faisalabad, Multan, Gujranwala, Hyderabad, Sialkot, Sukkur, Bahawalpur, Muzaffarabad and D. I. Khan

    READ MORE: Electricity withholding tax not applicable on ATL domestic consumers

    READ MORE: Tax rates on goods, passenger transport vehicles during 2022-2023

    READ MORE: FBR notifies tax rates on brokerage, commission during 2022-2023

    READ MORE: Non-ATL to pay 200% more tax on motor vehicle purchase during 2022-2023

  • Prime Minister Shehbaz arrives Saudi Arabia to attend FII Summit

    Prime Minister Shehbaz arrives Saudi Arabia to attend FII Summit

    RIYADH: Prime Minister Shehbaz Sharif on Monday arrived Riyadh, Saudi Arabia on a two-day visit to attend the Future Investment Initiative (FII) Summit being held from October 25-27, 2022.

    The prime minister is visiting the Kingdom at the invitation of Saudi Crown Prince Mohammed Bin Salman bin Abdulaziz.

    At the airport, the Governor of Riyadh Faisal bin Bandar bin Abdulaziz Al Saud received the prime minister who was accompanied by a delegation comprising the federal ministers.

    READ MORE: Prime Minister Shehbaz wishes Hindu community on Diwali

    During his stay in Riyadh, the prime minister will hold consultations with the Saudi Crown Prince to review the longstanding fraternal relations, with a view to further strengthening the multifaceted cooperation, especially in the economic field, according to the Foreign Office.

    Prior to his departure, the prime minister in a series of tweets said the present state of the global economy needed “new thinking and bold vision to overcome the irritants and forge new paths”.

    “The pandemic and climate-induced disasters have already put immense strains on the developing countries,” he said, adding that it was high time the world explored solutions to the deepening challenges through candid dialogue.

    The FII summit will convene the world’s foremost CEOs, policymakers, investors, entrepreneurs, and young leaders to shape the future of international investment and the global economy.

    The event will include in-depth conversations about new pathways for global investment; analysis of critical industry trends; and unparalleled networking among CEOs, world leaders, and experts.