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Find top stories in this section. Pakistan Revenue brings you the latest and most important news from Pakistan and around the world, keeping you informed with key updates and insights.

OGDCL discovers oil, gas reserves in Sindh

KARACHI: Oil and Gas Development Company Limited (OGDCL), a public limited company of Pakistan with 75 percent share of the government, on Wednesday announced a discovery of oil and gas reserves in Tando Allha Yar, Sindh Province.

The Joint Venture of Nim Block Comprising OGDCL as Operator (95 per cent) and Government Holdings (Private) Limited (GHPL) (5 per cent carried) has discovered oil and gas from exploratory well namely Nim East- 1 located in District Tando Allah Yar, Sindh Province, the company said in a statement.

READ MORE: OGDCL declares over 63% net profit for 1HFY22

Nim East-1 was spudded in on March 21, 2022 as an exploratory well by using OGDCL’s in-house expertise and in close collaboration with GHPL team.

The well was drilled down to 2573m. Based on the results of wireline logs interpretation, Drill Stem Test-1 in the Basal Sand has tested 1400 Barrels of Oil per Day (BOPD) and 5.02 Million Standard Cubic Feet per Day (MMSCFD) Gas through choke size 32/64” at Well Head Flowing Pressure (WHFP) of 1820 Pounds per Square Inch (psi).

READ MORE: OGDCL declares Rs33.63 billion net profit in first quarter

“The said discovery is the 11th discovery in Nim Block which shows the commitment of Nim Joint Venture Partners to exploit the hydrocarbon potential of the block besides reflection of aggressive exploration strategy,” according to the statement.

Discovery will help in mitigating energy demand and supply gap from indigenous resources and will add to the hydrocarbon reserve base of joint venture entities and the country.

READ MORE: OGDCL discovers huge gas deposits in Balochistan

June 22, 2022
Rupee slips to new low at Rs211.93 against dollar

KARACHI: The Pakistan Rupee (PKR) slipped to new historic low at Rs211.93 against dollar on Wednesday in interbank foreign exchange market.

The rupee fell by 45 paisas to end at Rs211.93 to the dollar from previous day’s closing of Rs211.48 in the interbank foreign exchange market.

READ MORE: Free-fall in rupee continues; dollar peaks at Rs211.48

Currency experts said that the local unit was under pressure due to fiscal weakness and falling foreign exchange reserves.

They said that the foreign exchange reserves had declined to critically low, which created panic in the market. Besides, high oil prices and rise in commodity prices globally also pushed dollar demand for import payments.

According to data released by the State Bank of Pakistan (SBP) a day earlier, the official reserves of the central bank had declined to provide about one month import cover.

READ MORE: Dollar hits historic high against rupee, ends near Rs210

The official foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $241 million to $8.985 billion by week ended June 10, 2022 as compared with $9.226 billion a week ago i.e. June 03, 2022.

The present level of the SBP’s reserves showed that the central bank has import cover for around only one months.

Pakistan’s import bill for the month of May 2022 recorded at $6.777 billion, according to Pakistan Bureau of Statistics (PBS).

READ MORE: Rupee collapses to fresh low against dollar to Rs208.75

The latest foreign exchange reserves of the SBP showed it fell around 2½ years low. Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021.

Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.16 billion by week ended June 10, 2022 from touching the peak on August 27, 2021.

The country is facing serious balance of payment crisis during the past many months. The foreign exchange reserves of the central bank have seen a constant decline.

The country was expecting inflows from various sources but so far those were not materialized so far. The country also making all efforts to resume IMF program to obtain about $ 1 billion next tranche under Extended Fund Facility (EFF).

READ MORE: Pakistan’s central bank reserves shrink to one month import cover

It is pertinent to mention that the government had twice increased the prices of petroleum products since May 26, 2022 in order to satisfy the International Monetary Fund (IMF) for the release of next tranche of about $1 billion. Another increase was seen on June 15, 2022.

The government on May 26, 2022 decided partially withdraw the subsidy to get the next tranche of the IMF, the rupee sharply made gains against the dollar. The local unit made a recovery of Rs4.42 against the dollar during the past five sessions.

The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.

The SBP on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.

Recently the government announced a complete ban on imports to support balance of payment and help the rupee to stabilize. But all these measures appeared in failure as the exchange rate yet again deteriorated today massively.

June 22, 2022
Procedure notified for TAD under Afghan transit trade

ISLAMABAD: The Federal Board of Revenue (FBR) has notified procedure for issuance of temporary admission document (TAD) under Afghan Transit Trade.

The FBR issued SRO 802(I)/2022 to amend Customs Rules, 2001 by inserting new rule 482A.

In March 2022, Pakistan and Afghanistan implemented movement of transit and bilateral trade through TAD for commercial vehicles.

Under the arrangement, the Pakistan Embassy in Kabul and the consulate generals in Jalalabad and Kandahar will issue TAD for Afghan vehicles. The Afghan Embassy in Islamabad and consulate generals in Peshawar and Quetta will issue the entry documents for Pakistani vehicles.

The move, aimed at improving regional connectivity with the Central Asian States, envisages the provision of TAD to transporters from both sides.

“482A. Procedure for issuance of TAD.- Notwithstanding the provisions of rule 482, initially the following procedure and conditions shall be followed for issuance and regulation of TAD, namely:-

(1) Directorate of Transit Trade, Karachi and Afghanistan Ministry of Transport shall share list of approved transport operators and their vehicles before starting issuance of TAD. When new transport operators and their vehicles are added to the list, the other side shall be informed via email, immediately. Both sides shall nominate focal persons for timely exchange of this information. Proper and complete record of all approved transport operators and their vehicles shall be maintained by the both sides;

(2) The list of approved Afghan transport operators and their registered vehicles shall be forwarded by Directorate of Transit Trade, Karachi to the concerned officers in the Embassy of Pakistan, Kabul and the Consulate General of Pakistan at Kandahar and Jalalabad and the list of approved Pakistani transport operators and their registered vehicles shall be forwarded by Afghan authorities to the concerned officers in the Embassy of Afghanistan in Islamabad or the Consulate General of Afghanistan in Karachi, Quetta and Peshawar.

(3) the application of TAD by Afghan approved transport operators for Afghanistan registered vehicles, as per Appendix-IIIA, along with required documents, shall be collected on all working days at window No. 5 of Pakistan Embassy in Kabul and Pakistan Consulate in Kandahar during 1100 to 1200 hours. Whereas applications for TAD for Pakistan registered vehicles as per Appendix-IIIB shall be collected on all working days at Afghan Embassy in Islamabad, and Afghan Consulate General in Karachi, Quetta and Peshawar during 1000 to 1100 hours;

(4) no fee shall be charged application form. Both availability and shall also or consulate websites downloadable;

(5) Trade Officer or Commercial Assistant posted at commercial section in Pakistan Embassy, Kabul and at the Pakistan Consulate General in Kandahar shall issue the TAD for vehicles registered in Afghanistan. The Transport Attaché, Afghan Embassy at Islamabad, and Afghan Consulate General in Karachi, Quetta and Peshawar Pakistan shall issue the TAD for vehicles registered in Pakistan. The format of TAD is enclosed as Appendix IIIC.

(6) at the time of issuance of TAD, by Pakistani authorities, to approved transport operators of Afghanistan for an Afghan registered vehicle, the particulars of the vehicle shall be cross-verified with the details sent by the Directorate General of Transit Trade, Karachi;

(7) TAD shall be issued against payment of fee of US $ 100. The TAD fee collected by Pakistan Embassy or Consulates in Afghanistan shall be transferred to the account of Directorate General of Transit Trade on monthly basis. A bar code having all the details of the vehicles may be embossed on TAD;

(8) TAD shall be issued within five working days of receipt of applications;

(9) validity of TAD shall be 180 days (06 months) from the date of issue with the option of multiple entries with the maximum one time stay of 30 days in Pakistan and Afghanistan;

(10) statement of TADs issued by Pak Embassy and Consulates shall be finished to the designated focal person of Directorate of Transit Trade, Karachi on daily basis via email and Afghan side will develop same system on their side;

(11) TAD shall be valid for one vehicle at a time and only for the carrier to whom it was issued; it shall not be transferable to other carriers;

(12) any unauthorized entry or tampering in TAD shall render it void and invalid.

(13) Pakistan customs shall be entering each entry or exit journey on the back page of TAD; the same shall be done by Ministry of Transport and Civil Aviation Afghanistan;

(14) security and safety of the TAD in the home country shall be the responsibility of the transport operator. If the TAD is lost in the home county, the transport operator in whose name the TAD is issued shall first register an FIR and then apply for a new TAD by providing a copy of the FIR. The embassies or consulates shall inform the relevant authorities, to cancel that TAD in their record;

(15) security and safety of the TAD in the territory of the other contracting party shall be the responsibility of the driver of the vehicle. If the TAD is lost, the driver shall first register an FIR in the nearest Police station and shall inform the transport or customs authorities. For exit on the crossing points he shall provide the documentary proof of his lawful entry and copy of FIR lodged with the police. The embassies or consulates shall inform the relevant authorities, to cancel that TAD in their record;

(16) if the vehicle goes missing in the territory of Pakistan, the driver will immediately report the incident to the nearest police station and register the FIR. He shall submit the copy of FIR in the office of the nearest Customs Enforcement Collectorate. The transport operator in such cases will be liable to pay duties and taxes leviable on the goods as ascertained by Pakistan Customs. Similar procedure will be adopted by the other contracting party in their territory.

(17) the TAD will be valid for both bilateral and transit trade at following BCPs:-

(a) Torkham (transit and bilateral trade)

(b)

(c) Chaman (transit and bilateral trade)

(d) Ghulam Khan (transit and bilateral trade)

(e) Kharlachi (bilateral trade)

(f) Angoor Adda (bilateral trade)

The cabotage is not allowed. Any violation of this rule will result in black listing of the vehicle and cancellation of TAD.

(18) the respective Directorate of Transit Trade shall act as focal formation for TAD for transportation of transit as well as bilateral goods.

(19) The following documents shall be filed by the applicant transport operator for obtaining TAD:

(a) application form as per format given in Appendix IIIA and Appendix IIIB;

(b) expired TAD of the Vehicle (in original) this shall be required after 180 days of operationalization;

(c) copy of National ID Card or passport of the owner;

(d) copy of registration book of the vehicle;

(e) copy of license or authorization issued by Afghanistan Ministry of Transport to transport operators of Afghanistan for international carriage of goods or copy of license or authorization issued by Pak customs to transport operators of Pakistan for international carriage of goods;

(f) a valid fitness certificate shall be required for Afghan vehicles after every 180 days;

(g) picture of the vehicle for record purpose; and

(h) serially numbered authority letter issued by the

relevant transport operator.

(21) the contracting parties shall, in accordance with their respective laws, rules and regulations, grant multiple entry visa to the driver and one helper of the vehicle valid for a period of one year, each stay not exceeding 30 days. In exceptional circumstances the Ministries of Interior of the two countries will consider the request for extension of VISA after fulfilment of legal requirement.

482B. The arrangement prescribed through rule 482A is a temporary arrangement which will prevail till formalities under Afghanistan-Pakistan Transit Trade Agreement, 2022 are finalized and would cease to have effect from the date FBR notifies.

June 22, 2022
FBR issues draft return forms for tax year 2022

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday issued draft income tax return forms for tax year 2022.

The FBR issued SRO 820(I)/2022 to notify the draft income tax return forms. The forms included: electronic return for salaried individuals; electronic return for Association of Person (AOPs); electronic return for business individuals; and electronic return form for companies.

READ MORE: Tax return filing starts from July 01, 2022

The revenue body advised stakeholders to provide objections or suggestions to the draft return forms within seven days of publication of the draft form. “Objection or suggestions which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be taken into consideration by the FBR,” it added.

READ MORE: Penalty amount revised for late filing income tax returns

The FBR may issue the finalized income tax return forms after the expiry of the stipulated time for draft return forms. The formal income tax return filing for tax year 2022 may be started from July 01, 2022.

The last date for filing income tax return tax year 2022 is September 30, 2022. All the taxpayers including salaried persons, business individuals, AOPs and companies having special tax year are required to file their annual income tax returns by September 30, 2022.

READ MORE: FBR to disable mobile SIMs on non-filing of tax returns

However, corporate entities having their accounting year July to June will be required to file annual returns for income by December 30, 2022.

June 21, 2022
Tax return filing starts from July 01, 2022

KARACHI: The filing of income tax return for tax year 2022 will start from July 01, 2022 and will remain continue till September 30, 2022.

As per Income Tax Ordinance, 2001, all the taxpayers, other than corporate entities, are required to file their annual income tax returns on or before September 30 every year.

READ MORE: Penalty amount revised for late filing income tax returns

Last year the Federal Board of Revenue (FBR) opened the online portal for filing income tax returns on July 01 for filing return for tax year 2021. The FBR issued draft income tax return forms on June 11, 2021 and issued the finalized income tax return forms on July 01, 2021.

However, for current year the FBR had not issued draft income tax return forms till June 21, 2022.

The tax authorities issue draft form to take input from stakeholders to remove any anomaly or error/mistake.

Tax analysts said that statute allows taxpayers to have three-month period for filing annual income tax returns. The expiry date will be after three month from the issuance date of return forms.

READ MORE: FBR to disable mobile SIMs on non-filing of tax returns

The Section 118 of Income Tax Ordinance, 2001 explains method for furnishing returns and other documents:

Section 118. Method of furnishing returns and other documents. —

(1) A return of income under section 114, a wealth statement under section 116 or a foreign income and assets statement under 116A, if applicable shall be furnished in the prescribed manner.

(2) A return of income under section 114 of a company shall be furnished —

(a) in the case of a company with a tax year ending any time between the first day of January and the thirtieth day of June, on or before the thirty-first day of December next following the end of the tax year to which the return relates; or

READ MORE: SITE Association signs MoU for tax return filing

(b) in any other case, on or before the thirtieth day of September next following the end of the tax year to which the return relates.

(2A) Where salary income for the tax year is five hundred thousand rupees or more, the taxpayer shall file return of income electronically in the prescribed form and it shall be accompanied by the proof of deduction or payment of tax and wealth statement as required under section 116 or a foreign income and assets statement under 116A, if applicable”:

“Provided that the Board may amend the condition specified in this sub-section or direct that the said condition shall not apply for a tax year.”;

(3) A return of income for any person (other than a company) shall be furnished as per the following schedule, namely:—

READ MORE: Non-filing penalty of each day default implements

(a) in the case of a return required to be filed through e-portal in the case of a salaried individual, on or before the 30th day of September next following the end of the tax year to which the statement or return relates; or

(b) in the case of a return of income for any person (other than a company), as described under clause (a), on or before the 30^th day of September next following the end of the tax year to which the return relates.

(4) A wealth statement shall be furnished by the due date specified in the notice requiring the person to furnish such statement or, where the person is required to furnish the wealth statement for a tax year under sub-section (2) of section 116, by the due date for furnishing the return of income for that year.

(5) A return required to be furnished by a notice issued under section 117 shall be furnished by the due date specified in the notice.

(6) Where a taxpayer is not borne on the National Tax Number Register and fails to file an application in the prescribed form and manner with the taxpayer’s return of income, such return shall not be treated as a return furnished under this section.

June 21, 2022
Last date June 30, 2022 to exchange prize bonds

KARACHI: The bearer prize bonds of various denominations will not be exchangeable or convertible after June 30, 2022, which is the last date set by the government.

The federal government has extended the last date for converting or exchanging the bearer prize bonds up to June 30, 2022.

The State Bank of Pakistan (SBP) issued a circular on March 30, 2022 to extend the date up to June 30, 2022 for exchanging or converting the bearer prize bonds including denominations of Rs40,000/- Rs25,000/-, Rs15,000/- and Rs7,500.

Earlier, the last date for exchanging the bearer prize bonds was March 31, 2022.

READ MORE: SBP directs banks to accept bearer prize bonds

The SBP instructed the banks to accept requests for encashment / conversion / redemption of cited denominations from general public till June 30, 2022.

“Further, the banks shall submit branch / region wise consolidated data of cited denomination national prize bonds held by them on last date i.e. June 30, 2022 latest by July 04, 2022, as per the instructions stipulated in aforementioned CMD Circulars.

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

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.

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.

READ MORE: History of Prize Bonds in Pakistan

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.

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: Income tax on prize bonds, lottery winning

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.

June 20, 2022
Dollar hits historic high against rupee, ends near Rs210

KARACHI: The US dollar closed near Rs210, a new record high against the Pakistan Rupee (PKR) on Monday amid falling foreign exchange reserves and demand for import payments.

The exchange rate recorded a decline of Rs1.21 in rupee value to end at Rs209.96 to the dollar from last Friday’s closing of Rs208.75 in the interbank foreign exchange market.

READ MORE: Rupee collapses to fresh low against dollar to Rs208.75

According to data released by the State Bank of Pakistan (SBP) a day earlier, the official reserves of the central bank had declined to provide about one month import cover.

The official foreign exchange reserves of the State Bank of Pakistan (SBP) fell by $241 million to $8.985 billion by week ended June 10, 2022 as compared with $9.226 billion a week ago i.e. June 03, 2022.

The present level of the SBP’s reserves showed that the central bank has import cover for around only one months.

Pakistan’s import bill for the month of May 2022 recorded at $6.777 billion, according to Pakistan Bureau of Statistics (PBS).

The latest foreign exchange reserves of the SBP showed it fell around 2½ years low. Previously, the foreign exchange reserves held by the central bank were seen at $9.233 billion on December 6, 2019.

The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021.

READ MORE: Pakistan’s central bank reserves shrink to one month import cover

Since touching the peak the central bank’s foreign exchange witnessed a continuous decline. The official reserves of the SBP fell around $11.16 billion by week ended June 10, 2022 from touching the peak on August 27, 2021.

The country is facing serious balance of payment crisis during the past many months. The foreign exchange reserves of the central bank have seen a constant decline.

The country was expecting inflows from various sources but so far those were not materialized so far. The country also making all efforts to resume IMF program to obtain about $ 1 billion next tranche under Extended Fund Facility (EFF).

It is pertinent to mention that the government had twice increased the prices of petroleum products since May 26, 2022 in order to satisfy the International Monetary Fund (IMF) for the release of next tranche of about $1 billion. Another increase was seen on June 15, 2022.

The government on May 26, 2022 decided partially withdraw the subsidy to get the next tranche of the IMF, the rupee sharply made gains against the dollar. The local unit made a recovery of Rs4.42 against the dollar during the past five sessions.

READ MORE: Free-fall in rupee continues, dollar touches new high at Rs206.46

The rupee remained under pressure against the greenback during the current fiscal year. The State Bank of Pakistan (SBP) has taken various measures to support balance of payment and the local currency. However, the measures ended in a failure to help the rupee to recover losses.

The SBP on May 23, 2022 announced a sharp increase in policy rate by 150 basis points to 13.75 per cent from 12.25 per cent.

Recently the government announced a complete ban on imports to support balance of payment and help the rupee to stabilize. But all these measures appeared in failure as the exchange rate yet again deteriorated today massively.

READ MORE: Rupee’s erosion continues as dollar closes at Rs205.16

June 20, 2022

Pakistan announces massive tax reduction for salaried persons

KARACHI: Pakistan has announced massive tax reduction for salaried persons in the budget 2022/2023. The country announced federal budget 2022/2023 on June 10, 2022 and announced massive reduction in tax on the income of salaried person, which may be applicable from July 01, 2022.

Through Finance Bill, 2022 the tax slabs have been reduced to seven from 12. Besides, bringing down the number of slabs, the country also provided massive tax relief in payment of tax.

According to PwC A F Ferguson & Co. the persons falling in various tax slabs will save tax amount in tax year 2022-2023.

Following is the comparison in proposed salary taxes and existing taxes calculated by PwC A F Ferguson&Co.

Amount in Rupees

Annual taxable income	Existing tax	Proposed tax	(Saving) / Excess tax
600,000	–	–	Nil
1,200,000	30,000	100	(29,900)
2,400,000	180,000	84,000	(96,000)
3,600,000	390,000	234,000	(156,000)
6,000,000	895,000	654,000	(241,000)
12,000,000	2,345,000	2,004,000	(341,000)
18,000,000	4,845,000	3,954,000	(891,000)
24,000,000	5,645,000	5,904,000	259,000

The finance bill proposed following income slabs and rate of tax for salaried persons for tax year 2022/2023:

S#	Taxable Income	Rate of Tax
(1)	(2)	(3)
1.	Where taxable income does not exceed Rs. 600,000	0
2.	Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000	Rs. 100
3.	Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000	7% of the amount exceeding Rs. 1,200,000
4.	Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000	Rs. 84,000 + 12.5% of the amount exceeding Rs. 2,400,000
5.	Where taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000	Rs. 234,000 + 17.5% of the amount exceeding Rs. 3,600,000
6.	Where taxable income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000	Rs. 654,000 + 22.5% of the amount exceeding Rs. 6,000,000
7.	Where taxable income exceeds Rs. 12,000,000	Rs. 2,004,000 + 32.5% of the amount exceeding Rs. 12,000,000.”

The existing income slabs and rate of tax for salaried persons:

1. Where taxable income does not exceed: Rs. 600,000 0%

2. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000: 5% of the amount exceeding Rs. 600,000

3. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000: Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000

4. Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000: Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000

5. Where taxable income exceeds Rs.2,500,000 but does not exceed Rs. 3,500,000: Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000

6. Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000: Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000

7. Where taxable income exceeds Rs. 5,000,000 but does not exceeds Rs. 8,000,000: Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000

8. Where taxable income exceeds Rs. 8,000,000 but does not exceeds Rs. 12,000,000: Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000

9. Where taxable income exceeds Rs. 12,000,000 but does not exceeds Rs. 30,000,000: Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000

10. Where taxable income exceeds Rs. 30,000,000 but does not exceeds Rs. 50,000,000: Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000

11. Where taxable income exceeds Rs. 50,000,000 but does not exceeds Rs. 75,000,000: Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000

12. Where taxable income exceeds Rs. 75,000,000 Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000]

June 20, 2022

Pakistan decides 10% regulatory duty on petrol import

KARACHI: Pakistan has decided to impose regulatory duty at 10 per cent from July 01, 2022.

The country presented its federal budget 2022/2023 on June 10, 2022 and proposed increase on regulatory duty on various imported goods.

READ MORE: Penalty amount revised for late filing income tax returns

The Finance Bill, 2022 suggested levying 10 per cent regulatory duty on import of motor spirit as against existing rate of zero percent.

Experts at PwC A.F. Ferguson Chartered Accountants said that the notifications for amendments relating to regulatory duty and additional duty are yet to be issued. “The comments are based on ‘Salient Features’ issued with the finance bill,” they added.

READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

The government also proposed increase in regulatory duty from zero per cent to 10 per cent on other paper, paperboard, cellulose wadding and webs of cellulose fibers.

Furthermore, the government planned to increase regulatory duty from 10 per cent to 20 per cent on optic fiber cables.

The Finance Bill also proposed amendments in reduction of regulatory duties, which included:

Regulatory duty has been proposed to be reduced as follows:

Case hardening steel from 30 per cent to 20 per cent

Chrome yellow from 15 per cent to 0 per cent

The Finance Bill proposed reduction / concessions in customs duty:

Customs Duty (CD) leviable on the import of following categories of items / sectors is proposed to be exempted for incentivizing the respective sectors:

READ MORE: Pakistan massively increases taxation on motor vehicles

– Machinery and capital goods for mechanization of farming including machinery pertaining to irrigation, drainage, harvesting, plant protection etc.

– Specified raw materials used for manufacturing of LED lights, LED bulbs (including parts thereof) and brush ware.

– 26 Active Pharmaceutical Ingredients for incentivizing Pharmaceutical manufacturers.

– Raw materials for manufacture of first aid bandages.

– Membranes for filtering / purifying water.

– The drug ‘Grafalon’ and gadget ‘Irisvision’.

– Raw materials of Ivy leaves extract powders.

– Motor spirit.

In addition to CD, Additional Customs Duty (ACD) is also proposed to be exempted on import of the following goods:

– Raw materials imported by paper sizing industry and chlorinated paraffin wax industry and manufacturers of aluminum conductor composite cores.

– Stamping foils for manufacturing of optic fiber cables.

– Aluminum paste and powder imported by the Coating industry.

– Guts, bladders and stomachs of animals.

READ MORE: New rates of capital gain tax on disposal of securities

Reduction in Customs Duty and Additional Customs Duty

CD leviable on import of following goods is proposed to be reduced:

– Specified categories of other woven fabrics and artificial flowers / foliage of other materials imported by manufacturers of footwear.

– High-density fiber (HDF) boards of wood or other ligneous materials

– Specified fibers of polypropylene.

In addition to CD, ACD, leviable on import of following goods is also proposed to be reduced:

– Direct and reactive dyes.

– Glycerol crude and Glycerol for the coating industry.

– Goods pertaining to Aluminum, polymers of ethylene, Biaxially Oriented Polypropylene (BOPP) used by the packing industry.

– Adhesive, Epoxide resins, Filter media/ paper, Non-woven fabric media and Steel plates / sheets of prime quality imported by manufacturers of filters, other than automotive.

READ MORE: Pakistan slaps 45% corporate tax on banks

– Organic composite solvents and thinners imported by manufacturers of Dibutyl Orthophthalates.

– Plywood, veneered panels & similar laminated wood, poly (methyl methacrylate) and cyanoacrylate.

– Flavoring powders for food preparation for snacks manufacturers.

June 19, 2022
Total bank accounts in Pakistan grow to 66.13 million

KARACHI: The number of bank accounts in Pakistan increased to 66.13 million by end of March 2022, showing a jump of 6.66 per cent when compared with 62 million bank accounts by end of same month last year, according to data released by the State Bank of Pakistan (SBP).

It is interesting to note that the statistics showed the population grew much faster than increase in bank accounts. The SBP showed estimated population of the country at 227 million by end of March 2022 as compared with 212 million in the same period of the last year, showing a growth of 7.07 per cent.

READ MORE: Internet banking posts 20% growth in 3Q: State Bank

During past one year the number of total banks in the country is same at 44. However, the number of bank branches grew to 16,788 by end of March 2022 as compared with 16,223 by end of same month last year.

The SBP presented following key highlights of Payment System Review for quarter ended March 30, 2022.

One EMI, M/s China Mobile Pakistan Electronic Commerce Company (CMPECC), was granted commercial license in Q3-FY22.

Number of POS machines reached to 96,975 while the number of payment cards declined slightly to 47.2 million from 48.7 million from the last quarter.

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E-banking volume and value grew by 2.6 per cent and 6.5 per cent respectively on Quarter-on-Quarter (QoQ) basis.

The number of internet banking users reached 7.6 million recording QoQ growth of 10.6 per cent. These users conducted 38.3 million transactions amounting to PKR 2,906.9 billion amounting to a quarterly growth of 13.5 per cent by volume and 19.9 per cent by value.

During the same quarter, 38.3 million POS transactions amounting to PKR 189.7 billion were conducted showing quarterly growth of 21.9 per cent by volume and 6.5 per cent by value.

A total of 9.1 million e-commerce transactions amounting to PKR 27.0 billion were conducted digitally showing quarterly growth in value by 1.3 per cent though volume decline by -32.7 per cent.

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Number of ATMs increased by 1.1 per cent as compared to previous quarter. Value of ATM transactions amounted to PKR 2,437.0 billion of which 90.5 per cent transactions were related to cash withdrawals and 5.1 per cent related to Inter Bank Funds Transfer (IBFT).

The number of mobile banking users declined by -1.0 per cent reaching to 12.0 million. Over 101.5 million transactions valuing around PKR 3,085.8 billion were conducted via mobile banking channels during the quarter, showing a growth of 8.1 per cent by volume and 5.4 per cent by value.

Branch network of Banks and MFBs has reached to 16,788 branches, which includes 16,643 Real-Time Online Branches (RTOB), 48 manual branches and 97 overseas branches.

Value of total RTGS (PRISM) transactions during the quarter amounted PKR 155.7 trillion of which PKR 106.2 trillion were related to Government Securities.

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June 18, 2022