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  • Electricity withholding tax not applicable on ATL domestic consumers

    Electricity withholding tax not applicable on ATL domestic consumers

    Domestic consumers of electricity are not subject to withholding income tax if their names are in the Active Taxpayers List (ATL).

    The Federal Board of Revenue (FBR) has issued updated withholding tax card 2022-2023 after incorporating amendments made through Finance Act, 2022 to the Income Tax Ordinance, 2001.

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

    The FBR collects withholding tax on the electricity consumption under Section 235 of the Income Tax Ordinance, 2001.

    Following are the withholding tax rates and text of the Section 235:

    WITHHOLDING TAX RATES ON ELECTRICITY

    For commercial and industrial consumers:

    1. There will be no tax on gross amount of bill up to Rs500

    2. The rate of withholding tax shall be Rs10 per cent of the amount where gross amount of bill exceeds Rs500 but does not exceed Rs20,000.

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

    3. The tax shall be Rs1950 plus 12 per cent of the amount exceeding Rs20,000 for commercial consumers. Rs1,950 plus 5 per cent of amount exceeding Rs20,000 for industrial consumers where gross amount of bill exceeds Rs20,000.

    For domestic consumers: (The tax is applicable on person not appearing on ATL)

    The rate of tax to be collected on domestic electricity consumption shall be: (i) zero percent the amount of monthly bill is less than Rs. 25,000; and (ii) 7.5 per cent if the amount of monthly bill is Rs. 25,000 or more.

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

    Section 235. Electricity consumption

    (1) There shall be collected advance tax at the rates specified in Division IV of Part-IV of the First Schedule on the amount of electricity bill of a commercial or industrial or domestic consumer:

    Provided that the provisions of sub-section (1) shall not apply to a domestic consumer of electricity if his name appears on the Active Taxpayers’ List.

    (1A) In addition to tax collectible under sub-section (1), there shall be collected tax at the rates given in the Division IV of Part IV of First Schedule from retailers and service providers as provided under section 99A of the Ordinance:

    Provided that the tax shall not be collectible under this sub-section if the tax has been collected from the person under sub-section (9) of section 3 of the Sales Tax Act, 1990 as provided in the general order issued under section 99A of the Ordinance.

    READ MORE: FBR notifies tax rates on prize bond, lottery winning during 2022-2023

    (2) The person preparing electricity consumption bill shall charge advance tax under sub-section (1) in the manner electricity consumption charges are charged.

    Explanation.— For removal of doubt, it is clarified that for the purposes of this section electricity consumption bill referred to in sub-section (2) means electricity bill inclusive of sales tax and all incidental charges.

    (3) Advance tax under this section shall not be collected from a person who produces a certificate from the Commissioner that his income during tax year is exempt from tax or that he has discharged advance tax liability under section 147 or whose entire income is subject to final tax regime or minimum tax regime under any provisions of this Ordinance other than this section.

    READ MORE: Tax rates for rental income from immovable property during 2022-2023

    (4) Under this section, —

    (a) in the case of a taxpayer other than a company, tax collected upto bill amount of three hundred and sixty thousand Rupees per annum shall be treated as minimum tax on the income of such persons and no refund shall be allowed;

    (b) in the case of a taxpayer other than a company, tax collected on monthly bill over and above thirty thousand rupees per month shall be adjustable; and

    (c) in the case of a company, tax collected shall be adjustable against tax liability.

  • Unilever Pakistan forecasts erosion in consumer purchasing power

    Unilever Pakistan forecasts erosion in consumer purchasing power

    KARACHI: Unilever Pakistan Foods Limited – fast-moving consumer goods company – on Monday said that high inflation to erode purchasing power of consumers.

    While presenting financial results for nine months period ended September 30, 2022, the company said Pakistan’s economic and operating environment remains challenging as the country continues to grapple with sustained double-digit inflation, low foreign exchange reserves and aftermath of recent floods.

    “The above factors are expected to result in a considerable overall economic slowdown and further erosion of purchasing power of the consumers.”

    It said that in the midst of the situation, the management remains committed to navigating the challenges and staying relevant to the consumer by leveraging the power of its brands, delivering delightful innovations and driving cost transformation. “We are confident that we will continue to deliver competitive, consistent, responsible and profitable growth benefitting all stakeholders,” the company added.

    The board of directors of the company met on October 24, 2022 and approved the un-audited condenses interim financial information for the nine months ended September 30, 2022.

    According to the company, despite challenging economic and political environment, the business continued its positive momentum and delivered a growth of 36.6 per cent with a healthy mix of pricing and volume.

    The growth was broad based with both retail and food solution business delivering consistent performance on the back of strong brand equity, innovations and wider distribution.

    “Inflationary headwinds resulted in a gross margin dilution of 202 basis points to 41.4 per cent. However, earnings per share grew by 33.3 per cent led by strong topline growth,” the company added.

  • Prime Minister Shehbaz wishes Hindu community on Diwali

    Prime Minister Shehbaz wishes Hindu community on Diwali

    ISLAMABAD: Prime Minister Shehbaz Sharif on Monday whished the Hindu community in the country on their festive occasion of Diwali.

    “Wishing the Hindu community in Pakistan and around the world on Diwali, the festival of lights,” the prime minister said in a tweet.

    The prime minister wished for Diwali to become a source of peace and happiness for all.

    Hindus across the globe and in Pakistan are celebrating the occasion of Diwali that celebrates the triumph of light over dark and good over evil.

    The Constitution of Pakistan gives equal opportunities to minorities to freely practice their religion and celebrate their occasions.

  • Honda launches locally assembled HR-V in Pakistan

    Honda launches locally assembled HR-V in Pakistan

    LAHORE: Honda Pakistan today unveiled the locally assembled HR-V in Pakistan. The unveiling event took place in Lahore. The company introduced two variants of the car, VTi and VTi S.

    The price of the VTi variant is Rs5,999,000 and VTi S variant is launched with the price of Rs6,199,000. The booking price of both variants is Rs. 13 lacs, however the delivery status may differ on the time of bookings.

    HR-V variants are equipped with a 1.5Lnaturally aspirated engine carrying the capacity to produces 121 horsepower and 145 Nm of torque.

    READ MORE: Honda suspends car production in Pakistan

    The car comes with the CVT transmission and both of the variants have eco mode.

    The front face of the variants come with LED Auto headlights with LED DRLs. The front grille is painted with black color in VTi variant. However the color of front grille in VTI-S variant varies according to the color of body.

    The VTi variant offers 2 tone 17″ Alloy Rims and VTi-S variant comes with grey painted 17″ Alloy Rims.

    The interior of both vehicles have 4.2 TFT screen, multimedia steering, smart entry, push start, ambient lights, and front console light.

    The VTi variant offers 9″ multimedia against 9″ android/Apple car play multimedia in VTi-S variant.

    VTi-S variant offers additional feature including the wireless charger, rear USB port, auto dimming rear view mirror, sequential turn signals, and LED fog lights. The grey and red interior is optional in both variants.

    READ MORE: Honda Motor reveals 92% growth in production worldwide

  • Manufacturing Panadol on negative margins unsustainable: GSK Pakistan

    Manufacturing Panadol on negative margins unsustainable: GSK Pakistan

    GlaxoSmithKline Pakistan on Friday declared force majeure due to negative margins for manufacturing of Panadol tablets in the country.

    The company in a statement said we are one of the few multinational companies left operating in the country.

    However, due to the challenges stated above, manufacturing of the Panadol range on negative margins is unsustainable, and despite exhaustive efforts of the Company to mitigate this matter through dialogue, the situation is now beyond our control.

    “We are thus forced to declare force majeure regarding the production of Panadol Tablets, Panadol Extra Tablets and Children’s Panadol Liquid Range.”

    The company said this is further to our several letters to various government stakeholders regarding the critical issue of extraordinary and rapid increase in paracetamol (raw material) prices in Pakistan, and our appeals to the Federal Government to accord approvals for the adjustments to the selling price(s) of the captioned Panadol range of products, all of which are Paracetamol based.

    We had obtained the approval in the 50th Drug Pricing Committee (DPC) of the Drug Regulatory Authority of Pakistan (DRAP), held on 12 January 2022 which were recommended by the DPC for the approval of the Cabinet. But, according to media reports, the same have been rejected after a prolonged delay by the latter without any intimation of reason(s) given to the Company.

    Also, although the company has received a routine Consumer Price Inflation (CPI) adjustment for the year 2022 from DRAP on 25 August 2022, the same is not commensurate with the debilitating increase in the prices of the raw material of Paracetamol.

    The Company has been an integral part of the pharmaceutical / industrial sector and has made substantial contributions to the economic growth and stability of Pakistan. We have created thousands of jobs, pay taxes, and save Pakistan foreign exchange through import substitution or earned for Pakistan as a result of the exports of its products.

    The Company is proud to supply reliable, efficacious and high-quality products with an established safety profile, which have become household names, with the captioned Panadol range being no exception. As a responsible corporate citizen, the Company holds the trust of its patients, consumers, healthcare practitioners, shareholders and all other stakeholders in the highest of regard. During the last twelve (12) months, the Company produced nearly 5,400 million tablets of Panadol 500mg and Panadol Extra to serve its customers, consumers and patients in need.

    The Company has played a critical, consumer / patient focused and responsible role during the COVID-19 pandemic, dengue fever crisis and floods across Pakistan, by ensuring continuous supplies of the Panadol range; this despite incurring heavy financial losses on the production of the said Panadol range due to an increase in the price of Paracetamol raw ingredients and in the absence of due approval by the Federal Government of the recommendation of the DPC / DRAP.

    We remain keen to meet you to resolve the situation – so that we can continue to deliver everyday healthcare to Pakistani people. We urge the Federal Government to take urgent action to rationalise the prices of the impacted Panadol range commensurate with the increase in the price of the impacted raw material and as recommended by the Drug Pricing Committee of the Drug Regulatory Authority of Pakistan, so as to enable the Company to continue supporting the government to ensure an ongoing supply to all patients and consumers in need.

  • Today’s petroleum prices in Pakistan on Oct 21, 2022

    Today’s petroleum prices in Pakistan on Oct 21, 2022

    ISLAMABAD: The prices of petroleum prices in Pakistan as of October 21, 2022 is as follow:

    The rate of petrol is Rs224.80 per liter.

    The price of high speed diesel is Rs235.30 per liter.

    The rate of Kerosene oil is Rs191.83 per liter.

    The price of light diesel oil is Rs186.50 per liter.

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

    The federal government on Thursday October 20, 2022 hinted at downward revision of petroleum prices. However, the changes would be announced on October 31, 2022 for next fortnight.

    Previously, on October 15, 2022 the government decided to keep the prices of petroleum products unchanged for the fortnight starting from October 16, 2022.

    Finance Minister Muhammad Ishaq Dar in a statement said that Oil and Gas Regulatory Authority (OGRA) had sent summary for increase in prices of petroleum products but the government had decided to maintain the prices at the level of October 01, 2022 and will be applicable till October 31, 2022.

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

    Energy experts were believing that the government would announce a sharp reduction in petroleum prices for next fortnight starting from October 16, 2022 owing to massive gain in value of local currency and lower prices of oil in international markets.

    Finance Minister Ishaq Dar had also hinted to reduce the oil prices significantly in order to stabilize the economy and ease the burden of high prices.

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

    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

  • OPF provides employment prospects for returning migrants

    OPF provides employment prospects for returning migrants

    ISLAMABAD: For smooth integration and economic empowerment of returning migrants, Overseas Pakistanis Foundation (OPF) organized a ceremony where returning migrants were presented toolkits in the trades of electrician, plumber, carpenter, motor cycle mechanic and mason as an In-Kind support to help them start sustained self-employment.

    The activity is part of OPF efforts to support returning migrants to make a new start in Pakistan and achieve a sustainable employment.

    OPF is implementing a program on economic reintegration of returnees in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in Pakistan.

    It is commissioned by the Federal Ministry for Economic Cooperation & Development Germany, (BMZ) and is part of BMZ support for voluntary return & sustainable reintegration.

    A Pakistani-German Facilitation & Reintegration Centre (PGFRC) has been established in OPF premises, Lahore with an advisory desk in OPF head office Islamabad. PGFRC is supporting and assisting returning migrants and the local population to have a sustainable source of income.

    The ceremony was attended by the Chief Guest, Syed Mustafa Haider, Director welfare OPF, trade specific toolkits were handed over to 80 returning migrants as an In-Kind Support. These migrants have also completed a comprehensive business development training from PGFRC.

    Dr. Mansoor Zaib Khan, Head of PGFRC, GIZ officials, members of Senate and National Assembly Standing Committees on Overseas Pakistanis & HRD, Members, OPF Board of Governors, senior government officials, representatives of international organizations and civil society representatives also attended the ceremony.

    Syed Mustafa Haider, Director welfare OPF said that today’s ceremony is a testament to the commitment of Government of Pakistan which considers overseas Pakistanis as its roaming ambassadors abroad and is actively engaged in resolving their reintegration issues in Pakistan. Ministry of OP&HRD, through OPF is working in a focused manner on this issue.

    Dr. Mansoor Zaib Khan, Head of PGFRC is informed that PGFRC is open to all Pakistani’s and all our services are free of charge. PGFRC is providing advice on training and skills development, technical and vocational training, advice on job market trends and opportunities, advice on finding a job in Pakistan, entrepreneurship and start-up support, psychosocial support, and information on the health system in Pakistan, information on living conditions and advice on getting microfinance and loans.

    He mentioned that more than 800 returning migrants in the trades of electrician, plumber, carpenter, and mason will benefit from this capacity building leading to In-Kind support intervention.

    Several Pakistanis migrate abroad to work, but at some point, in their lives, they return to Pakistan and struggle to re-establish themselves and make a respectable living. Furthermore, the COVID19 pandemic impacted Pakistanis living in other countries, resulting in huge layoffs and the return and repatriation of tens of thousands of migrants from their intended destinations. When they returned, these migrants are very concerned about their job prospects. In these trying times, the PGFRC is a ray of hope.

  • Preventing currency smuggling top priority: FBR Chairman

    Preventing currency smuggling top priority: FBR Chairman

    ISLAMABAD: Asim Ahmad, Chairman, Federal Board of Revenue (FBR) has said that prevention of currency smuggling is top priority of Pakistan Customs.

    The FBR chairman identified top priority arrears of the government to combat smuggling of currency, vehicles, and goods. Besides, prevention of mis-invoicing was also one of the top priorities, he added.

    READ MORE: FBR collects Rs459 billion as sales tax on POL products in TY 2022

    Asim Ahmad, Chairman, addressed the inaugural session of the quarterly coordination and performance review conference held recently of the Regional Directors of the Directorate General of Intelligence & Investigation-Customs; an important arm of the FBR.

    The Chairman made it very clear that the Directorate General, I&I-Customs, had the capacity and competence to come up to the expectations with respect to each of these priority areas.

    READ MORE: WHT share in direct taxes jumps to 67% despite omitting provisions

    He assured the Director General, Faiz Ahmad Chadhar, that all possible resources required to achieve the desired results will be provided by FBR.

    During the 12 hours long conference, each Regional Director gave a detailed presentation on the performance in the first quarter of FY 2022-23.

    It covered major challenges hindering achievement of organizational goals, methods of information gathering, gaps in human resource and logistics as well as suggestions for further improvement.

    READ MORE: Pakistan amends baggage rules; now $1,000 require declaration

    In his closing remarks, the Director General directed the Regional Directors to focus on mis-invoicing not only in imports but also in exports, mis-use of exemption regimes, variation in pattern of transit trade viz a viz national imports and improving vigil along the borders.

    He underscored the importance of improved liaison of the officers of Directorate General of I&I-Customs with national law enforcement agencies including Police, Rangers, FC, ANF, Provincial Excise Departments, other national intelligence agencies, and District Administration.

    READ MORE: PTBA raises objections to amendments proposed by FBR

    He also highlighted the need of coordination with the Chambers of Commerce and other trade bodies to have first-hand knowledge about their issues and grievances.

    The Director General further emphasized that meeting the targets and expectations of FBR and the Federal Government with respect to smuggling, money laundering, and mis-invoicing will lead to creation of an enabling environment in the country for economic growth and investment.

  • Pakistan keeps petroleum prices unchanged from October 16, 2022

    Pakistan keeps petroleum prices unchanged from October 16, 2022

    The government of Pakistan has decided to keep the prices of petroleum products unchanged for the fortnight starting from October 16, 2022.

    Finance Minister Muhammad Ishaq Dar in a statement said that Oil and Gas Regulatory Authority (OGRA) had sent summary for increase in prices of petroleum products but the government had decided to maintain the prices at the level of October 01, 2022 and will be applicable till October 31, 2022.

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

    Therefore the prices from October 16, 2022 shall be remained 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 reviews petroleum prices on Sept 30, 2022 amid crash in global rates

    Energy experts were believing that the government would announce a sharp reduction in petroleum prices for next fortnight starting from October 16, 2022 owing to massive gain in value of local currency and lower prices of oil in international markets.

    Finance Minister Ishaq Dar had also hinted to reduce the oil prices significantly in order to stabilize the economy and ease the burden of high prices.

    The Pakistani Rupee (PKR) has recorded massive gain 13 sessions against the dollar.

    Furthermore, the benchmark US Brent oil also fell owing to fears of lower demand globally.

    The government has reduced the petroleum prices in the wake of massive decline in international oil prices.

    READ MORE: New petroleum prices in Pakistan effective from September 21, 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 September 01, 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.

  • FBR collects Rs459 billion as sales tax on POL products in TY 2022

    FBR collects Rs459 billion as sales tax on POL products in TY 2022

    The Federal Board of Revenue (FBR) has reported a substantial growth in sales tax collection on the import of Petroleum, Oil, and Lubricants (POL) products during the tax year 2022, reaching an impressive Rs459 billion.

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