The government on Sunday ordered an inquiry into the collection of sales tax at increased rates from retailers. Prime Minister Muhammad Shehbaz Sharif directed the investigation, focusing on the imposition of a higher sales tax ratio on small traders through electricity bills, which exceeded the agreed-upon rate.
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President Alvi rejects Habib Bank plea, orders to pay victims
ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has rejected plea in six different cases filed by Habib Bank Limited (HBL) and ordered to pay victims.
A statement issued on stated that the President ordered the HBL to compensate the victims of online banking fraud as justifications presented by the bank were not sufficient.
READ MORE: HBL ordered to compensate bank fraud victim
Dr. Alvi directed HBL to refund and compensate the 6 defrauded customers with their stolen money and observed that since the bank failed to prove observance of relevant provision of laws, rules and regulations, therefore, its representations were devoid of any merit and deserved to be rejected.
The President rejected HBL’s six representations involving a total amount of Rs. one million and observed that victims were deprived of their hard earned deposits when the bank unilaterally activated the electronic funds transfer (EFT) facility without the request/consent of account holders and failed to put in place necessary safeguards against online exploitation of the account holders by the fraudsters.
READ MORE: FBR directed to bring entire sugar supply chain into tax net
In all six cases, the President found the bank negligent of its duty to inform the account holders about the pros and cons of activating the electronic funds transfer (EFT) as required by the mandatory guidelines of the State Bank of Pakistan (SBP).
Had the bank not opened EFT facility without customers’ consent, the account holders could have avoided the financial loss, he added.
The President rejected the bank’s claim that all transactions were 3D secured, being a secondary step, by observing that the State Bank of Pakistan (SBP), required all banks to register its customers for internet banking prior to offering them internet based products and services and putting in place all necessary safety measures to safeguard its clients from fraudsters.
READ MORE: President Alvi directs bank to refund unfair recovery
In his decisions, the President concluded that since the bank could not produce any evidence to the effect that it had complied with the provisions of relevant laws, rules and regulations, therefore, its representations were devoid of any merit and deserved to be rejected.
According to details, the account holders were called by fraudsters who lured them in their trap by providing them information regarding their names, CNIC, dates of birth, ATM Card numbers and obtained from them the names of their mothers and used this information to deprive the account holders of their deposits by making multiple e-commerce transactions, even though the bank customers were not using any mobile app and they were also in possession of their ATM Cards.
The victims approached their respective bank branches to freeze their accounts and seek refund, however, they were not provided any relief by the bank on the grounds that they themselves had shared their personal banking credentials with unknown callers.
READ MORE: President Alvi rejects FBR plea in maladministration cases
Feeling aggrieved, the account holders approached the Banking Mohtasib of Pakistan (BMP), after hearing arguments on account of banking malpractices, maladministration, wrong doings, the fraudulent transactions, the corrupt and malafide practices by the Bank officials, it decided the cases in favor of the applicants.
The Bank, however, chose to further escalate the matter and filed separate representations with the President which were rejected and the Bank was directed to comply with the directions of the Banking Ombudsman.
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Poll sees no policy rate change in August 22, 2022 meeting
KARACHI: The State Bank of Pakistan (SBP) is likely to keep key policy rate unchanged at 15 per cent in a meeting scheduled on Monday, August 22, 2022.
According to analysts majority of market participants are expecting no change in policy rate.
READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%
Topline Research conducted a Poll from market participants to assess their view on the upcoming Monetary Policy announcement scheduled on August 22, 2022.
As per the survey, 56 per cent of the participants expects no change in policy rate in upcoming monetary policy. Around 43 per cent of the participants anticipates an increase whereas 1 per cent of the participants expects a decrease in policy rate.
Responding to second question on their view about policy rate by end of fiscal year 2022/2023, 45 per cent of the participants expects policy rate to be in the range of 12.01 per cent to 14 per cent and 5 per cent of the participants anticipate it to be in the range of 10 per cent-12 per cent by June 2023.
In terms of outlook for Current Account Deficit (CAD), 39 per cent of the participants expect CAD to be below $9 billion in the current fiscal year while the remainder expects CAD to be higher than $9 billion in the fiscal year 2022/2023. To recall, CAD in in the fiscal year 2021/2022 had clocked in at $17.4 billion led by sharp uptick in imports.
These results are also in line with our estimates where we think that policy rate will remain unchanged in upcoming monetary policy and are now near its peak where we can see a decline in policy rates in the second half of 2022/2023.
Since the last monetary policy announcement on July 7, 2022, expectation of improvement in external account has increased as Pakistan signed staff level agreement with International Monetary Fund (IMF) on July 13, 2022 and IMF’s board is likely to approve tranche of $1.2 billion.
Due to import curtailment measures, imports in July 2022 also fell by 38 per cent MoM to $4.9 billion leading to 47 per cent lower trade deficit in July 2022 as per Pakistan Bureau of Statistics (PBS).
Consequently, Pakistan Rupee (PKR) has also started strengthening after making a low of Rs240 on July 28, 2022, it has strengthened to Rs216 against USD in the interbank market. These positive news flows have increased prospects of status quo in upcoming monetary policy.
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FBR issues new property valuation for Islamabad from August 01, 2022
The Federal Board of Revenue (FBR) has introduced new valuations for immovable properties in Islamabad, effective from August 01, 2022.
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Income tax return filing date expires on September 30, 2022
ISLAMABAD: The date for filing annual income tax return for the tax year 2022 is expiring on September 30, 2022, official sources told PkRevenue.com on Saturday.
Senior officials at Federal Board of Revenue (FBR) said that the all the taxpayers other than corporate taxpayers are required to file annual return of income for tax year 2022 by September 30, 2022.
READ MORE: How to file returns and other documents?
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.
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.
READ MORE: Who needs to file Tax Year 2022 return in Pakistan?
According to Income Tax Ordinance, 2001, following class of taxpayers are required to file return of income:
— 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;
(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;
READ MORE: FBR transfers 15 senior customs officers in BS-20, BS-21
(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.
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.
READ MORE: Pakistan Customs foils attempt to clear banned items
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Essential items witness inflation above 42%: Pakistan Bureau
ISLAMABAD: Pakistan Bureau of Statistics (PBS) on Friday disclosed that prices of essential items have recorded inflation above 42 per cent on year on year (YoY) basis by week ended August 18, 2022.
The bureau stated that Sensitive Price Indicator (SPI) of essential items depicts an increase of 42.31 per cent.
READ MORE: High inflation may force further monetary tightening
The essential items that recorded increase in prices during this period are included: Pulse Masoor (111.02 per cent), Diesel (108.77 per cent), Petrol (94.53 per cent), Onions (94.43 per cent), Cooking Oil 5 litre (72.96 per cent), Mustard Oil (71.08 per cent), Chicken (69.04 per cent), Vegetable Ghee 1 Kg (68.56 per cent), Vegetable Ghee 2.5 Kg (67.05 per cent), Electricity for Q1 (63.03 per cent), Washing Soap (61.92 per cent), Pulse Gram (58.93 per cent), Gents Sponge Chappal (52.21 per cent), Pulse Mash (51.51 per cent) and Garlic (36.59 per cent).
While a decrease observed in the prices of Chilies Powder (43.42 per cent), Sugar (16.55 per cent) and Gur (1.96 per cent).
READ MORE: Pakistan inflation hits 14-year high at 25% in July
The SPI for the week ended on August 18, 2022 recorded an increase of 3.35 per cent.
Increase is observed in the prices of food items, Tomatoes (20.28 per cent), Chicken (7.57 per cent), Onions (2.30 per cent), Powdered Milk (2.03 per cent), Eggs (1.63 per cent), Pulse Moong (1.42 per cent) and Potatoes (1.07 per cent), non-food items, Electricity for Q1 (6.83 per cent), Petrol (2.96 per cent) and Cigarette (1.69 per cent).
On the other hand, a decrease observed in the prices of LPG (3.46 per cent), Vegetable Ghee 1Kg (1.16 per cent), Garlic (0.94 per cent), Mustard Oil (0.71 per cent), Pulse Masoor (0.42 per cent), Pulse Gram (0.36 per cent), Vegetable Ghee 2.5Kg (0.33 per cent), Cooking Oil 5 litre (0.31 per cent), Diesel (0.18 per cent), Firewood Whole (0.16 per cent) and Sugar (0.03 per cent).
READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%
During the week, out of 51 items, prices of 25 (49.01 per cent) items increased, 11 (21.57 per cent) items decreased and 15 (29.42 per cent) items remained stable.
The SPI is computed on weekly basis to assess the price movements of essential commodities at shorter interval of time so as to review the price situation in the country. SPI comprises of 51 essential items collected from 50 markets in 17 cities of the country.
READ MORE: Pakistan’s sensitive price inflation surges by 37.67%
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Pakistan lifts ban on import of cars, phones, luxury items
ISLAMABAD: Pakistan on Friday lifted ban on all import of luxury and non-essential items amid serious foreign exchange crisis.
The ministry of commerce issued SRO 1562(I)/2022 for lifting the ban on luxury and non-essential items, including motor vehicles, mobile phones and home appliances.
The government on May 19, 2022 through a circular No. 598 (I)/2022 imposed the complete ban on import of such items in the wake of serious balance of payment crisis and to prevent fall in rupee value.
Despite the ban, the rupee fell to the historic low of Rs239.94 against the dollar on July 28, 2022.
It is worth mentioning that the foreign exchange reserves were drastically decreased despite imposition of ban on imported luxury items.
READ MORE: Pakistan decides to lift ban on imported goods
Pakistan’s foreign exchange reserves have increased by $52 million by week ended August 12, 2022. The foreign exchange reserves of the country have recorded at $13.613 billion by week ended August 12, 2022 as compared with $13.561 billion a week ago i.e. August 05, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.615 billion.
The official foreign exchange reserves of the State Bank witnessed an increase of $67 million to $7.897 billion by week ended August 12, 2022 as compared with $7.83 billion a week ago.
READ MORE: 15% surcharge imposed for clearance of banned items
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $12.249 billion.
The country has taken the decision in order to fulfil the condition of International Monetary Fund (IMF) to get loans.
Addressing a press conference a day earlier alongside members of the government’s economic team, Miftah Ismail said that the import ban on non-luxury items was placed in line with the IMF’s demands.
Miftah said that after much back-and-forth, the IMF has finally announced that its board meeting will take place on August 29 — for considering Pakistan’s request for the release of the $1.17 billion tranche.
The finance minister noted that the government has also fulfilled all the pre-requisites of the lender, while the funding gap of $4 billion has also been met — after friendly countries agreed to help Pakistan financially.
He said that after the import ban, it became easier for the government to import necessary commodities, which were essential for the masses. “When we have limited dollars and we have to feed a huge population, our priority automatically becomes [the nation]. We had to choose between importing cars and wheat — that’s why we imposed a ban.”
READ MORE: Pakistan allows release of banned items stuck up at ports
The finance minister said the government was scrapping the import ban as it was an international requirement, but noted that the regulatory duty that will be imposed on the non-essential imported items will be three times higher than the current levels.
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FBR starts penal action against non-filing of asset declarations
The Federal Board of Revenue (FBR) has taken a firm stance against tax officials who have failed to submit their annual asset declarations, signaling the commencement of penal action against non-compliant officers.
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Suzuki Motors extends plant shutdown in Pakistan
KARACHI: Suzuki Motors on Thursday announced extension in plant shutdown due to inventory shortage for production of motor vehicles.
Pak Suzuki Motors Co. Ltd. in a communication sent to Pakistan Stock Exchange (PSX), stated that the State Bank of Pakistan 9sbp) had introduced a mechanism for prior approval for import under HS Code 8703 category (including CKD) vide circular No. 09 of 2022 dated May 20, 2022.
READ MORE: New prices of Suzuki cars in Pakistan from August 16, 2022
“Restriction had adversely impacted clearance of import consignment which resultantly affected the inventory levels,” the company said.
Therefore, due to shortage of inventory level, the management of the company has decided to further extend the shutdown period of automobile plant from August 22, 2022 to August 26, 2022.
Previously, the company announced to temporarily close the plant from August 18, 2022 to August 19, 2022.
The company, however, said that motorcycle plant will remain operative. “Further update, if any, in this regard will be communicated accordingly,” the company informed the PSX.
READ MORE: Suzuki Motors warns plant shutdown in Pakistan
Suzuki Motors has announced new rates of its cars in Pakistan, which are applicable from August 16, 2022.
According to Suzuki Ittehad Motors following are the new showroom prices of Suzuki cars in Pakistan.
Following are the new rates of Suzuki Swift:
1. Suzuki Swift GLX CVT, the decreased price is Rs3,760,000.
2. Suzuki Swift GL CVT, the decreased price is Rs3,420,000.
3. Suzuki Swift GL M/T, the decreased price is Rs3,180,000.
4. Suzuki Alto VXL, the decreased price is Rs2,223,000.
READ MORE: Indus Motors rebuts plant shutdown reports
5. Suzuki Alto VXD, the decreased price is Rs1,976,000.
6. Suzuki Alto VX, the decreased price is Rs1,699,000.
7. Suzuki Wagon-R VXL, the decreased price is Rs2,564,000.
8. Suzuki Wagon-R AGS, the decreased price is Rs2.802,000.
9. Suzuki Wagon-R VXR, the decreased price is Rs2,421,000.
10. Suzuki Bolan Van, the decreased price is Rs1,500,000.
11. Suzuki Bolan Cargo, the decreased price is Rs1,487,000.
12. Suzuki Ravi Euro II, the decreased price is Rs1,424,000.
READ MORE: Prices of KIA Motors raised up to 19.3% amid rupee devaluation
13. Suzuki Ravi W/O Deck, the decreased price is Rs1,349,000.
14. Suzuki Cultus VXL, the decreased price is Rs3,024,000.
15. Suzuki Cultus AGS, the decreased price is Rs3,234,000.
16. Suzuki Cultus VXR, the decreased price is Rs2,754,000.
17. Suzuki Jimny MT, the decreased price is Rs6,049,000.
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Pakistan makes currency declaration must at air ticket booking
KARACHI: Pakistan has made it must for all international air passengers to declare foreign currency at the time of ticket booking.
The country has taken the decision to comply with the conditions of Financial Action Task Force (FATF) for preventing money laundering and terror financing.
READ MORE: Pakistan launches online currency declaration
Sources in Civil Aviation Authority of Pakistan (CAA) told PkRevenue.com on Thursday that all the passengers intending to go abroad are required to declare currency at the time of booking the international air ticket.
For outbound flights, airlines may also direct their staff/travel agents to ensure that they provide a copy of the declaration at the time of booking of ticket.
READ MORE: FPCCI suggests amnesty for cryptocurrency declaration
“At check-in counters, airlines are directed to issue boarding pass only once the passengers have deposited the declaration with them,” according to a statement issued by the CAA.
It further said that Pakistan Customs are required to deploy their staff along with airline staff to supervise/assist the passengers at the dedicated facilitation counter inside the check-in hall.
The airline staff will collect the declarations and hand over the same to the customs staff after the closure of the flight along with the passenger’s manifest.
READ MORE: FPCCI demands reducing income tax slabs to five
For Inbound Flights, airlines are required to ensure in-flight announcement by the flight crew for every inbound flight for submission of subject declaration wherein the passengers will mention the currency under the regulatory requirements of FATF.
The airline crew will distribute the declaration during the flight to all the passengers, irrespective of their nationality. The said declaration will be deposited at the customs counter before the immigration desks at International Arrival.
CAA will provide space and counters for the collection of all declaration forms.
READ MORE: FBR tightens monitoring to prevent currency smuggling