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  • Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates

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

    Pakistan is set to review petroleum prices on September 30, 2022 for the next fortnight starting from October 01, 2022. The government will review the prices when the prices in international markets have been crashed to multi months low.

    According to Reuters news agency oil prices fell $2 a barrel a day earlier, settling at nine-month lows in choppy trade, pressured by a strengthening dollar as market participants awaited details on new sanctions on Russia.

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

    Brent crude futures for November settled down $2.09, or 2.4 per cent, to $84.06 a barrel, plunging below levels reached on January 14. U.S. West Texas Intermediate (WTI) crude for November delivery dropped by $2.06, or 2.3 per cent to $76.71, the lowest since Jan. 6.

    Previously, the government revised the petroleum prices on September 21, 2022, which was scheduled to be announced on September 15, 2022.

    According to a statement issued by the Finance Division, the government decided to increase prices of petrol by Rs1.45 per liter to Rs237.43 from previous rate of Rs235.98.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    However, the government kept the price of high speed diesel (HSD) unchanged at Rs247.43 per liter.

    The price of kerosene oil has been reduced by Rs8.30 per liter to Rs202.02 from Rs210.32.

    Similarly, the rate of light diesel oil has been reduced by Rs4.26 per liter to Rs198.28 from previous rate of Rs201.54.

    It is pertinent to mention that the government to announce the prices of petroleum products in the wake of massive appreciation in rupee value as well. Besides, Ishaq Dar is also assuming the charge as finance minister. These factors would also impact the review.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    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.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    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.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    Pakistani Rupee (PKR) has plunged by PKR 20 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

  • Over 100,000 flood affected children given health treatment in Sindh hospitals

    Over 100,000 flood affected children given health treatment in Sindh hospitals

    KARACHI: More than 100,000 children have been treated free of cost at the children’s Emergency Rooms (ERs) of government teaching hospitals in flood-hit locations.

    The ERs have remained operational 24/7 despite torrential rains and flooding in calamity-hit districts of Sindh. They provide quality emergency medical care as well as dispense life-saving medicines to flood-affected children.

    The ERs are managed by ChildLife Foundation under the Sindh government’s long-standing public private partnership with the organization.

    It has strengthened the public health system in the province by upgrading the children’s ERs so they meet international standards of care.

    More than 400 healthcare and management professionals are at the helm of the ERs in flood-affected areas, where timely medical care is given to children being brought in with complaints of water-borne diseases such as gastroenteritis, malaria, cholera, dengue, typhoid, pneumonia and skin infections.

    “The floods have given rise to an alarming public health situation and have put children at extreme risk of disease and death. The children’s ERs in flood-affected cities of Larkana, Sukkur, Nawabshah, and Hyderabad are receiving double the regular volume of patients daily.

    “It is a challenging time, but government support has ensured the delivery of emergency treatment to flood-affected children without a break or pause,” says Dr. Ahson Rabbani, CEO of ChildLife Foundation.

    The Sindh government’s support has also facilitated telehealth consultations for children in remote rural areas through a telemedicine network. It connects all district hospitals of Sindh to Karachi’s Civil Hospital where child specialists assess patients through HD camera and IP phone and provide them with expert consultations.

    Moreover, free medical camps have been organized for children in district and tehsil headquarter hospitals and rural health centers in Daur, District Shaheed Benazirabad, Tharushah, District Naushahro Feroze, and Oderolal Station, District Matiari. At these medical camps, child specialists have provided free treatment, medicines and referrals to flood-affected children.

  • Dispensation of swift justice priority of Supreme Court of Pakistan

    Dispensation of swift justice priority of Supreme Court of Pakistan

    Pakistan needs a speedy justice system in order to win the confidence of people and take quantum leap to reduce the pendency of cases. The Supreme Court of Pakistan (SCP) has taken various measures to improve the justice system in the country and encourage all the lower and higher courts to enhance efficiency in their workings.

    In order to recognize the efficiency, the SCP distributed awards among model court judges in 2019. Shabana Waheed, Additional District Judge (ADJ) Karachi Central was among the judges, who received the model court award.

    ADJ Shabana Waheed is taking lead in providing speedy justice without hurting the actual essence of the justice system. She is known to resolve disputes in shorter span of time even convincing parties to resolve with the mutual consent to settle out of court.

    In a recent case, ADJ Shabana Waheed helped the parties to mutually resolve the dispute of an immovable property. It was case of real brother and a sister. The sister was claiming that the immovable property was in the name of her mother and the distribution of shares should be within heirs of the mother. On the other hand the brother claimed it was benami property as their mother was a housewife; therefore, the owner of the property would be he himself or his father (late), as the property was purchased after the death of the father.

    During course of discussion, the sister disclosed that her father had purchased another immovable property during his lifetime and the instant disputed property was purchased from the funds received through sale of the previous property that was also sold after the death of the father. The disclosure of the sister cleared the things.

    The brother offered to surrender his benami right if his sister agreed to distribute share amongst all heirs of their father, including step sisters and brothers. The sister also showed positive gesture and agreed to the proposal.

    The role of the ADJ is that, though it was not official court proceeding, she resolved the issue while convincing both the sister and the brother to abide the Sharia Law and protect the rights. She also referred many verses of the Holy Quran to shed light on the importance of rights.

    This quick resolution not only bring closer both brother and sister, who were contesting this case for the past many years, but it also resulted harmony in the society just because of ADJ Shabana Waheed.

    Hon’ble Chief Justice of Pakistan Mr. Justice Umar Ata Bandial at the opening ceremony of New Judicial Year 2022-2023 said that dispensation of swift and economic justice being a priority, the Federal Judicial Academy and the Law and Justice Commission of Pakistan (LJCP), under the guidance of this Court, are resorting to alternative dispute resolution (ADR), which in time shall reduce the pendency of cases in all tiers of courts by around 40 percent, in the next three years.

    The Opening ceremony of New Judicial Year 2022-2023 was held today on 12th September 2022 in Court Room No.1 of Supreme Court of Pakistan, Islamabad. The ceremony was presided over by the Hon’ble Chief Justice of Pakistan Mr. Justice Umar Ata Bandial and was attended by the Hon’ble Judges, law officers and members of the legal fraternity.

    The ceremony was held on the eve of the start of the New Judicial Year, to take stock of performance of the past year and to formulate future policies accordingly not only for advancement of justice but also for protection of the fundamental rights of the people.

    The Hon’ble Chief Justice graced the occasion with the key note address. His lordship informed that during the period from 2nd Feb, 2022 till 9th Sep, 2022 the court has decided 14,943 cases, minimizing the pending cases from 54,134 to 50, 265, accordingly.

    The Hon’ble Chief Justice of Pakistan concluded with a solemn pledge regarding the court’s commitment to defend the Constitution in its entirety.

  • Penalties for failure to file return tax year 2022 within due date

    Penalties for failure to file return tax year 2022 within due date

    Tax laws have prescribed penalties for failure to file return for tax year 2022 within due date. The last date for filing income tax return for tax year 2022 is September 30, 2022. The Federal Board of Revenue (FBR) recently announced it would not extend the last date beyond September 30, 2022.

    Sources in the FBR said that the late filing of tax return would penal action as defined under the Income Tax Ordinance, 2001.

    READ MORE: FBR fails to remove return filing glitches; KTBA seeks legal time

    According to the tax laws, there are penalties where any person fails to furnish a return of income as required under Section 114 of Income Tax Ordinance, within due date.

    In case of failure to furnish return by due date, such person shall pay a penalty of equal to higher of:

    (a) 0.1 per cent of the tax payable in respect of that tax year for each day of default; or

    (b) rupees one thousand for each day of default: Provided that minimum penalty shall be —

    (i) rupees ten thousand in case of individual having seventy-five percent or more income from salary; or

    (ii) rupees fifty thousand in all other cases:

    READ MORE: FBR advised to fix glitches for smooth filing of income tax returns

    Provided further that maximum penalty shall not exceed two hundred percent of tax payable by the person in a tax year:

    Provided also that the amount of penalty shall be reduced by 75 per cent, 50 per cent and 25 per cent if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law;

    Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122D.

    The tax laws also prescribed that where any person fails to furnish wealth statement or wealth reconciliation statement. In such case person shall pay a penalty of 0.1 per cent of the taxable income per week or Rs.100,000 whichever is higher.

    READ MORE: Dental practitioners directed to get sales tax registration

    The FBR sources said that besides imposition of penalties for failure to file return by due date the defaulting person will also not be included in the active taxpayers list.

    Section 182A of the Income Tax Ordinance, 2001 explained the situation when return not filed within due date.

    Section 182A. Return not filed within due date.—(1) Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—

    (a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date:

    READ MORE: Tax rates on profit from bank deposits during year 2022/2023

    Provided that without prejudice to any other liability under this Ordinance, the person shall be included in the active taxpayer ‘ list on filing return after the due date, if the person pays surcharge at Rupees-

    (i) twenty thousand in case of a company;

    (ii) ten thousand in case of an association of persons;

    (iii) one thousand in case of an individual.

    “Explanation.—For the removal of doubt it is clarified that the provisions of this section shall apply from tax year 2018 and onwards for which the first Active Taxpayers List is to be issued on first day of March, 2019 under Income Tax Rules, 2002.; and

    (b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV;

    (c) not be issued refund during the period the person is not included in the active taxpayers’ list; and

    (d) not be entitled to additional payment for delayed refund under section 171 and the period the person is not included in the active taxpayers’ list, shall not be counted for computation of additional payment for delayed refund.

  • SBP advises general public not to share banking credentials

    SBP advises general public not to share banking credentials

    KARACHI: State Bank of Pakistan (SBP) on Saturday advised general public not to share their personal and banking credentials with persons impersonating SBP officials of other authorities.

    (more…)
  • FBR fails to remove return filing glitches; KTBA seeks legal time

    FBR fails to remove return filing glitches; KTBA seeks legal time

    A leading tax bar on Friday pointed out failure of the Federal Board of Revenue (FBR) in removing errors/glitches in the return filing as only a week left for the last date.

    Karachi Tax Bar Association (KTBA) in its letter to FBR chairman and other higher authorities to resolve issues in online return filing for tax year 2022. “A proper legal time for compliance should be allowed as per the statute after resolving these problems,” KTBA President Syed Rehan Hasan Jafri said in the letter.

    READ MORE: FBR advised to fix glitches for smooth filing of income tax returns

    It is pertinent to mention that the last date for return filing for tax year 2022 is September 30, 2022. About two days ago the Pakistan Tax Bar Association (PTBA) also pointed out similar issues but the problems are remained unresolved.

    Rehah Jafri said that none of the issues had been addressed as yet and, therefore, the pace of compliance of filing the Tax Returns is very slow. The KTBA previously sent communication to the FBR on September 6, 2022.

    Through instant letter the KTBA highlighted some issues further, which have been raised and discovered by our Members after our first letter of 06 September, 2022.

    READ MORE: Dental practitioners directed to get sales tax registration

    Column for Adjustment of Brought Forward Capital Losses

    Column for adjustment of brought forward capital losses under the head of capital gains is not available in Income tax return form due to which tax on capital gain cannot be calculated correctly.

    Column of Tax Credit for Specified Industrial Undertakings U/S 65G Inadvertently Available in Salaried Individual Return

    The Column of tax credit for specified industrial undertakings u/s 65G of the Income Tax Ordinance, 2001 is inadvertently available in the Tax Credits Annexure of income tax return for salaried individuals, which has no correlation with such tax credit.

    Non-Availability of Reduced Tax Rate on Contract Receipts

    Although the rate of tax on contract receipts under section 153 was reduced from 7.5% to 7% for Tax Year 2022, however, there is no column for such reduced rate in the return for the TY 2022 available on IRIS.

    Insufficient Time for Taxpayer Filing Manual Return Forms

    The draft of manual return forms for the Individuals and AOPs for the Tax Year 2022 was issued belatedly on August 26, 2022, whereas the final SRO. 1733(1)/2022 was issued on September 13, 2022 meaning thereby only 17 days of time has been allowed to file the manual returns, which is insufficient as provided under the law.

    READ MORE: Tax rates on profit from bank deposits during year 2022/2023

    Erroneous Tax Calculation on Gain of Immovable Property

    The IRIS portal is calculating incorrect tax liability on gain on sale of immovable properties in violation of section 37(1A) of the Income Tax Ordinance, 2001 which needs to be taken care off as soon as possible.

    Incorrect Tax Calculation on Profit on Debt

    The IRIS portal is calculating incorrect tax on profit/yield on Bahbood Certificates/ Pensioner’s Benefit Account/ Shuhada Family Welfare Account in violation of clause (6) of Part-III, 2nd Schedule of the Income Tax Ordinance, 2001, which provides that tax shall not exceed 10 percent of such Profit/ Yield.

    Error in Statement of Foreign Income & Assets u/s. 116A of the Ordinance for Non-Resident Individuals

    There lies no option list in drop downs country and currency under Code “7006” having description “Investment (Non-Business) (Account / Annuity / Bond / Certificate / Debenture / Deposit / Fund / Instrument / Policy / Share / Stock / Unit, etc.)” due to which a taxpayer remains unable to file the Foreign Income & Assets Statement under section 116A(1) of the Ordinance.

    READ MORE: Up to 70% income tax imposed on dividends for year 2022-2023

    Opening Wealth appearing in Wealth Statement

    Opening wealth is being shown in “Reconciliation of Net Assets” Value of opening net assets is being shown under code ‘703002’ despite the fact that the taxpayer’s residency status is selected as “non-resident” for Tax Year 2022 after which, he should not be required to file the wealth statement including reconciliation of net assets.

    Column Code 64330052 (Dividend u/s 150 @25%) is missing in Salary Return Form

    The withholding rates on payment of Dividend @ 7.5%, 15% and 25%, (under section 150 of the Ordinance) are appearing in the Income Tax Return Form of “Income for a person deriving income only from salary and other sources and the Column Code 64330052 (Dividend u/s 150 @25%) is missing.

    Erroneous Calculation of Written Down Value

    Proviso was inserted under section 22(2) of the Tax Ordinance by Finance Act, 2020 whereby depreciation on additions to fixed assets made after 01-Jul-2020 would be reduced by 50% However, when entries related to written down values are entered in in depreciation schedule as opening values, the IRIS is calculating depreciation at 50% on total values.

    READ MORE: FBR updates salary tax card for year 2022-2023

    No column for refund adjustment

    In addition to above, what lately has been done by FBR is that it has deleted the column of “Adjustment of Refunds”, which is certainly an afterthought while the Manual Tax Returns, which were issued vide SRO 1612(I)/2022 dated 26 August, 2022 do retain the “Column of Tax Return Refund”. There is no explanation or justification for this glaring disparity, which is to be taken care off the clarification of Taxpayers.

    Online Refund Adjustment Column is still not available on Return loaded on IRIS irrespective of the fact that it is available in the SRO issued by Board.

    Income attribution with respect to minimum taxation u/s. 153

    Profit on debt/interest income on government securities is subject to FTR

    Initial depreciation allowance on plant & machinery u/s. 23  

    Revised Wealth Statement u/s 116(3) is not imported

    Simplified Return for SMEs

  • Google Career Certificates to bring digital revolution in Pakistan

    Google Career Certificates to bring digital revolution in Pakistan

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has said that the launch of Google Career Certificates to bring digital revolution in Pakistan, according to a statement issued on Thursday.

    Pakistan is in dire need to capacitate the youth to enable them to contribute in the development of country, especially those who cannot afford to attend the universities, the president said during his video keynote address in the launching ceremony of Google Career Certificates in Pakistan, being carried out jointly by Google, Institute of Rural Management (IRM) and Ignite.

    Dr. Arif Alvi further said: “I am very pleased that google, IRM and Ignite are launching google career certificates in Pakistan. This program has ensured the women participation throughout the program. These courses will play an important part in creating a shift towards digitization and introduction of digital technology.”

    He expressed hope that initiation of such projects will bring about the required digital revolution in Pakistan.

    Dr. Arif Alvi stressed the youth to take benefit of these courses and enroll themselves in digital programs to increase their earnings as they are completely online and free.

    During the ceremony, speakers from Google, Ministry of IT, Industry and Academia addressed the participants on the importance of the Google career certificates in Pakistan.

    Dr. Roomi S. Hayat said that “he hopes that with the help of such programs, soon we would be a thriving country in the digital world.” CEO Ignite said, “Ignite has always contributed to the digital economy of Pakistan and through this certificates Ignite intends to further strengthen the digital economy.”

    Participants were also given a detailed orientation session on how to enroll and join the Google Career Certificate program.

  • Angelina Jolie visits Pakistan to support flood affected communities

    Angelina Jolie visits Pakistan to support flood affected communities

    International humanitarian Angelina Jolie is visiting Pakistan to support communities affected by the devastating floods, according to a statement issued on Wednesday.

    Heavy rains and floods across the country have impacted 33 million people and submerged one third of the country under water.

    Ms Jolie is visiting to witness and gain understanding of the situation, and to hear from people affected directly about their needs, and about steps to prevent such suffering in the future.

    Ms Jolie, who previously visited victims of the 2010 floods in Pakistan, and the 2005 earthquake, will visit the IRC’s emergency response operations and local organisations assisting displaced people including Afghan refugees. 

    Pakistan, which has contributed just 1% of global carbon emissions, is also the second largest host of refugees globally, its people having sheltered Afghan refugees for over forty years.

    Ms Jolie will highlight the need for urgent support for the Pakistani people and long-term solutions to address the multiplying crises of climate change, human displacement and protracted insecurity we are witnessing globally.

    Ms Jolie will see first hand how countries like Pakistan are paying the greatest cost for a crisis they did not cause. The IRC hopes her visit will shed light on this issue and prompt the international community – particularly states contributing the most to carbon emissions – to act and provide urgent support to countries bearing the brunt of the climate crisis.

    Shabnam Baloch, Pakistan Country Director at the IRC said: “The climate crisis is destroying lives and futures in Pakistan, with severe consequences especially for women and children.

    “The resulting economic loss from these floods will likely lead to food insecurity and an increase in violence against women and girls. We need immediate support to reach people in urgent need, and long term investments to stop climate change from destroying our collective futures. With more rains expected in the coming months, we hope Angelina Jolie’s visit will help the world wake up and take action.”

    IRC’s latest needs assessment shows people are in urgent need of food, drinking water, shelter, and healthcare. Every person surveyed reported women and girls have no access to menstrual hygiene products. So far, the IRC has reached more than 50,000 women and girls with humanitarian assistance, including dignity and hygiene kits to address the need for sanitation and menstrual items.

    We have been providing lifesaving services to flood-affected communities in Balochistan, Khyber Pakhtunkhwa and Sindh since early July and have reached almost 950,000 people with emergency supplies, food, healthcare and safe spaces.

  • National Foods donates PKR 60 million for flood relief activities

    National Foods donates PKR 60 million for flood relief activities

    KARACHI: ATC Holdings and its subsidiary National Foods Limited have announced to donate PKR 55 million for flood relief activities. Additionally, the group has created a dedicated account for employee contribution, leading to additional collection of PKR 8 million so far, taking the tally to over PKR 60 million.

    “Pakistan contains more glacial ice than any other country outside the polar regions. This combined with heavy rains has severely impacted Pakistan in terms of climate change. In the spirit of being truly National, I urge both local and international communities to come together and help the nation in this unprecedented crisis,” said CEO ATC Holdings & Chairman National Foods, Zahid Majeed.

    The group is executing relief efforts through partnerships with multiple organizations including Karachi Relief Trust (KRT), Hisaar Foundation, TCF & ChildLife Foundation.

    The Group aspires to reach all affected communities of our country. Immediate response included supplies to communal kitchens in the province of Sindh; namely Sukkur, Sakrand, Mirpurkhas, Nawabshah, Mehrabpur, Khairpur and providing ration packs, household goods in Balochistan.

    We are collaborating with experts to support the medical camps set up for affectees. Equipment and insecticides for tackling the immediate danger from mosquitoes have also been donated.

  • Outbound passengers to declare currency above $5,000

    Outbound passengers to declare currency above $5,000

    Federal Board of Revenue (FBR) Wednesday issued draft rules to make it mandatory for outbound passengers to make declaration of currency amounting above $5,000.

    The FBR issued draft amendment to Baggage Rules, 2006 by issuing SRO 1751(I)/2022 dated September 20, 2022.

    READ MORE: Rupee ends near historic low; Dollar gains to PKR 239.65

    The revenue body said that the draft rules had been published for information of all persons likely to be affected and notice is also given that objections or suggestions may for consideration of the board should be sent within seven days of the draft amendments.

    According to the amendment, in case of accompanied baggage, the outbound passenger who is in possession of foreign currency exceeding $5,000 of equivalent, any other prohibited or restricted item or any other item requiring declaration before Customs, shall file a declaration before or on departure, electronically in the WeBOC or manually.

    READ MORE: PKR falls for 13th session as dollar ends near record high

    Similarly, the incoming passenger who is in possession of foreign currency exceeding $10,000 or equivalent, any other prohibited or restricted item or any other item requiring declaration before customs shall file a declaration.

    Earlier, on September 11, 2022, the FBR issued a clarification stating that a misleading impression has been created in some section of the press that Pakistan has recently imposed currency declaration requirements for passengers coming into Pakistan, which is contrary to facts. Unlike portrayed by some section of the press, the mandatory requirement for passengers coming into Pakistan and bringing currency and/or negotiable instruments was notified by the State Bank of Pakistan more than 10 years ago vide notification no. F.E.1/2012-SB dated 16th June 2012. This requirement came into force on July 01,2012.

    READ MORE: PKR plunges for 12th session; Dollar ends at PKR 237.91

    Subsequently, in order to widen the scope of declaration to include gold jewelry, precious stones and other prohibited/ restricted goods, Pakistan Customs also introduced a comprehensive “Customs Declaration Form for Passengers” which was notified vide SRO 689(I)/2019 dated 29th June, 2019. These rules cover both the incoming and outgoing passengers.

    These requirements for declaration are in line with international standards and the best practices adopted by most of the countries in the world. The passengers can make the declaration either manually at the Customs counter or electronically in the Customs System. In order to increase awareness amongst the international passengers, Pakistan Customs has been collaborating with the Civil Aviation Authority, Airlines, and Immigration Authorities to improve its outreach for both departing and arriving passengers. As a result, the compliance has been steadily increasing.

    READ MORE: Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

    FBR has further reiterated that the currency declaration regime for all international passengers has been in field for more than a decade, rather than being recently introduced on account of any recent FATF review requirements.