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Category: National

National news coverage from Pakistan including politics, economy, society, and major developments shaping events across the country.

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.”

October 29, 2022
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…)

October 27, 2022
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.

October 26, 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.

October 25, 2022
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.

October 25, 2022
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

October 25, 2022
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.

October 25, 2022
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.

October 24, 2022
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.

October 24, 2022
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.

October 24, 2022