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  • SBP to observe five-day working week

    SBP to observe five-day working week

    KARACHI: The State Bank of Pakistan (SBP) will observe five days working in a week, according to a notification issued on Friday.

    The SBP will observe following working days and timings with immediate effect:

    Monday to Thursday from 9:00 a.m. to 5:30 p.m. with prayer/ lunch break from 1:30 p.m. to 2:15 p.m. whereas on Friday office hours will be from 9:00 a.m. to 6:00 p.m. with prayer/lunch break from 1:00 p.m. to 2:30 p.m.

    READ MORE: Dr. Murtaza assumes acting SBP governor charge

    Banks / Microfinance Banks (MFBs) may prescribe business (banking) hours for public dealing as per their business requirements provided the business (banking) hours being observed by the field offices of SBP Banking Services Corporation (SBP-BSC) are complied with as a minimum benchmark for this purpose.

    The central bank said, in order to ensure the availability of basic banking facilities to business community and public at large, banks / MFBs may open their selected branches situated in major cities / business centers / commercial markets & hubs / ports etc. on Saturdays as per their business requirements.

    READ MORE: Court judgment: Riba is Haram in any form

    The collection booths of banks located at Custom Houses / Ports shall remain open 24/7 as per existing practice. However, banks / MFBs shall submit a complete list of branches that will be opened on Saturdays to the Banking Policy & Regulations Department and also place the updated list of such branches on their websites. For the information of customers, banks / MFBs shall prominently display in the concerned branch that this branch will remain open on Saturdays.

    The above instructions shall continue to remain in force unless modified or withdrawn.

    Previously, on April 13, 2022 the SBP issued timings for six-day working week.

    READ MORE: SBP issues bank timings as per six-day working week

    The SBP had issued new banking timings after federal government’s announcement of six days working in a week.

    The SBP in a statement said that as per decision of the Federal Government the State Bank of Pakistan (SBP) will observe six days working week with the following office hours during the month of Ramadan-ul-Mubarak, which shall also be followed by all banks, Development Finance Institutions and Microfinance Banks:

    READ MORE: SBP imposes penalty of Rs109 million on four banks

    Monday to Thursday and Saturday from 8:00 am to 3:00 pm with prayer break from 1:00 pm to 1:30 pm whereas on Fridays office hours will be from 8.00 am to 1:00 pm without break.

    Banks / Microfinance banks are further advised to observe the following minimum business (banking) hours for public dealing:

    Monday to Thursday and Saturday from 8:00 am to 1:00 pm without prayer break whereas on Fridays office hours will be from 8.00 am to 12:00 pm without break.

  • Pakistan’s forex reserves dip to $16.55 billion

    Pakistan’s forex reserves dip to $16.55 billion

    KARACHI: Pakistan’s foreign exchange reserves fell by $115 million to $16.553 billion by week ended April 30, 2022, according to data released by the State Bank of Pakistan (SBP) on Friday.

    The foreign exchange reserves of the country were $16.668 billion a week ago i.e. April 30, 2022.

    READ MORE: SBP forex reserves shrink to 1.69 months import cover

    The official foreign exchange reserves of the SBP declined by $109 million to $10.449 billion by week ended April 30, 2022 as compared with $10.558 billion a week ago.

    The official reserves of the central bank witnessed a consistent decline during past couple of months due to external debt repayments. The SBP reserves have declined below two-month cover for import payments.

    The foreign exchange reserves held by commercial banks also fell by $56 million to $6.054 billion from previous week’s level of $6.11 billion.

  • FPCCI suggests amnesty for cryptocurrency declaration

    FPCCI suggests amnesty for cryptocurrency declaration

    KARACHI: Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has recommended the government to launch an amnesty scheme of asset declaration for cryptocurrencies.

    The FPCCI, which is the apex trade body of the country, in a letter to Prime Minister Shahbaz Sharif suggested measures to improve foreign exchange reserves.

    READ MORE: FPCCI protests over advisory council formation

    It said: “Investments in cryptocurrencies started with speculative gaming but in recent years have grown into humongous sizes. It is imperative for government authorities to first launch a one-time asset declaration scheme and devise a regulatory framework for future transactions.”

    Capital gain taxes, similar to stock market investments, should also be introduced which will provide an additional source of tax revenues for the country.

    READ MORE: FPCCI demands reducing income tax slabs to five

    The FPCCI suggested a mechanism for the proposed amnesty scheme, which included:

    i. Encashment of cryptocurrencies in Pakistan and converting the foreign exchange into the Pakistani rupee may be allowed with no tax.

    ii. Encashment of cryptocurrencies in Pakistan and held as deposits in foreign exchange accounts Pakistan may be allowed with a 5 per cent tax.

    iii. Encashment of cryptocurrencies in Pakistan and held as deposits in Roshan Digital accounts may be allowed with 10 per cent tax for non-resident Pakistani nationals/dual nationals.

    READ MORE: Tax slabs reduction may be considered: FBR chairman

    The apex trade body also advised the government to launch amnesty scheme to deposit dollars in local banks.

    It said that Pakistan’s total foreign exchange reserves have been depleting significantly since December 2021.

    The liquid forex reserves have reached the lowest level of US$ 17.01 billion in April 2022 since June 2020 (on weekly basis).

    READ MORE: High interest rate to destroy economy: FPCCI

    The reserves held by SBP are only enough to bear the imports bill for only two more months7. Increasing current account deficit and debt repayments (including repayment of the US$ 2.4 billion loan facility given by China) have eroded reserves significantly.

    The government should launch an incentive scheme to channelize dollar holdings from lockers and personal safes into bank accounts.

    The government may exempt such deposits from any taxes if these have not been declared earlier in tax returns which will be held in local accounts for at least one year.

  • Rupee falls 94 paisas to dollar in post Eid holidays

    Rupee falls 94 paisas to dollar in post Eid holidays

    KARACHI: The Pakistan Rupee (PKR) fell 94 paisas against the dollar on Friday due to higher external payment demand as the market opened after long holidays.

    The exchange rate ended at Rs186.63 to the dollar from previous closing on April 30, 2022 of Rs185.69 in the interbank foreign exchange market.

    READ MORE: Dollar gains six paisas against PKR in interbank

    Currency experts said that dollar demand remained high during the day because the market reopened after Eid holidays. The government announced the public holidays from May 02 to May 05, 2022 on account of Eid-ul-Fitr.

    The experts said that the rupee was also under pressure after the prices of crude oil rebounded in the international markets. Brent futures rose $2.08, or 1.88 per cent, to $112.98per barrel by 0922 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $2.00, or 1.85 per cent, to $110.26 a barrel, according to Reuters.

    READ MORE: Rupee gains 24 paisas to dollar in interbank

    Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import bill was $14.81 billion during first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of country.

    The depleting foreign exchange reserves are also putting pressure on the local currency.

    According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.

    READ MORE: Dollar appreciates 42 paisas against PKR

    The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.

    Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.

    READ MORE: Rupee recovers third straight day against dollar

    This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

    The higher foreign outflows caused payment imbalances. The current account deficit ballooned to $12.1 billion during July-February 2021/2022 when compared with a surplus of $994 million in the same period of the last fiscal year.

  • Bitcoin plunges over 9%; biggest intraday fall

    Bitcoin plunges over 9%; biggest intraday fall

    KARACHI: The major digital currency i.e. Bitcoin (BTC) on Thursday fell over 9 per cent, the biggest intraday fall following the Federal Reserve’s meeting on Wednesday faded.

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  • Murtaza Syed takes over SBP governor charge

    Murtaza Syed takes over SBP governor charge

    KARACHI: Dr. Murtaza Syed, most senior deputy governor of the State Bank of Pakistan (SBP), has taken over the charge as governor of the central bank.

    Dr. Murtaza Syed takes over the charge after Dr. Reza Baqir completed his three-year tenure as the governor of the SBP.

    READ MORE: Banks to remain closed during May 2 – 5, 2022

    “As the term of Governor SBP Dr. Reza Baqir has come to an end, as per law, the senior most deputy governor takes over until,” Finance Minister Miftah Ismail said in a Tweet.

    “Therefore, Dr. Murtaza Syed, an eminently qualified economist with rich IMF experience, will take over as Governor SBP,” he added.

    READ MORE: Court judgment: Riba is Haram in any form

    Dr. Raza Baqir, who completed his tenure on May 04, 2022, said in a statement: “I completed my 3 years as Governor of our central bank. Allah has been kind to give me the chance to serve my country in public office. To other fellow Pakistanis, especially overseas, I encourage you to consider public service.”

    READ MORE: SBP imposes penalty of Rs109 million on four banks

    Baqir said during his tenure he initiated many measures to counter the adverse impact of COVID-19. “SBP’s COVID response package and many new facilities for the first time in SBP history, which included TERF, Rozgar payroll loans, hospital financing etc.

  • Eid ul Fitr 2022 Mubarak

    Eid ul Fitr 2022 Mubarak

    PkRevenue.com wishes Happy Eid-ul-Fitr 2022 Mubarak to all valuable readers and followers.

    May the light of the moon fall directly on you and Allah bless you with everything you desire this day. Happy Eid! May Allah flood your life with love and happiness on this occasion, your heart with care and your mind with wisdom, wishing you Eid Mubarak. The most beautiful thing for me is to see you smiling

  • Pakistan considers fixing locally assembled car prices

    Pakistan considers fixing locally assembled car prices

    ISLAMABAD: The government of Pakistan is considering to fix prices of locally assembled cars in to order discourage abnormal price hike.

    According to an official statement on Monday, apropos frequent price hike of locally manufactured and assembled automobiles in past few months.

    READ MORE: OICCI suggests duty cut on locally manufactured cars

    Spokesperson has expressed concern over price surge and has taken a serious view about the frequent price increases by local automobile manufacturers/ assemblers.

    READ MORE: Return filing be made mandatory for account holders

    The spokesperson said that the situation was unacceptable, and the government might consider to initiate regulatory measures which may include fixation of prices under the Price Control Prevention of Profiteering and Hoarding Act, 1977.

    READ MORE: Unjustified audit notices annoy taxpayers

    Furthermore, he said that the cost structure and justification of price increase had been sought from local manufacturers and assemblers.

    READ MORE: Foreign investors demand inter-adjustment of tax refunds

  • FBR urged to make Google pin location must for retailers

    FBR urged to make Google pin location must for retailers

    KARACHI: The Federal Board of Revenue (FBR) has been urged to make Google pin location mandatory for Tier-1 retailers to stop misusing sales tax registration for point of sales (POS).

    Pakistan Business Council (PBC) in its proposals for budget 2022/2023 submitted to the FBR proposed to make Google pin location for Tier-1 retailers.

    READ MORE: Commercial importers misusing tax registration

    The PBC suggested measures for preventing misuse of POS by importers who use fake registration profile of retailer.

    In order to avail / misuse reduced rate of sales tax at 12 per cent on supplies of textile (which is available on supply of finished textile article through integrated POS system for retail outlets), some unscrupulous persons, after importing raw materials get tolling bills issued in their name from other manufacturers.

    Thereafter, such imported raw material is being sold as finished textile article through POS integrated with FBR system to avail reduced sales tax rate of 12 per cent.

    READ MORE: FBR urged to massively reduce tax rates for return filers

    FBR, view notification dated January 4, 2022 has already clarified that bulk supply through POS is tantamount to be treated as wholesale and hence would be chargeable to standard rate of 17 per cent sales tax.

    To prevent this unscrupulous practice, the following should be made mandatory for entities whose imports are over 70 per cent of their output and who have a POS facility:

    a) Should declare the number of their retail shops and

    b) Provide the square ft. retail space, detailed address, and Google pin location of all the retail stores

    c) Report per shop per month sales volume and invoices along with the monthly sales tax return.

    READ MORE: Commercial importers’ under invoicing destroying industry

    Earlier, the PBC also highlighted practice of commercial importers misusing tax registration to avail lower rates.

    Considering the fact that most of the commercial importers have been misusing the lower rate of tax otherwise available to manufacturers, therefore, FBR has reduced down the rate of tax at import stage to 1 per cent/2 per cent/5.5 per cent [on the basis of HS codes] for manufacturers as well as commercial importers.

    READ MORE: FBR’s database mining suggested for new taxpayers

    However, instead of making rate of tax at par for both commercial importers and manufacturers, PBC recommends to place system-based controls to track those commercial importers involved in under invoicing and importing under the garb of registration as manufacturers.

  • FBR chairman replaced despite massive collection growth

    FBR chairman replaced despite massive collection growth

    ISLAMABAD: The new coalition government led by Prime Minister Shahbaz Sharif soon after taking oath replaced the chairman of Federal Board of Revenue (FBR) despite massive growth in revenue collection during the current fiscal year.

    The government appointed Asim Ahmed as the new chairman of the FBR replacing Dr. Muhammad Ashfaq Ahmed.

    READ MORE: FBR surpasses collection target for July – April FY22

    Ashfaq Ahmed was appointed by the former PTI government on August 24, 2021. However, Asim Ahmed has been given the charge of the apex tax agency on April 27, 2022.

    Various quarters are now raising questions about the change of top brass at the FBR at a time when only two months left to complete the fiscal year 2021/2022.

    The FBR posted a massive growth in revenue collection during the tenure of Dr. Ashfaq Ahmed. The press release issued by the FBR is self explainatory about the performance of ex-FBR chairman.

    READ MORE: LTO Karachi posts 41% collection growth in 10 months

    The FBR collected net revenue of Rs 4,858 billion during July, 2021-April, 2022 of current Financial Year 2021-22, which has exceeded the target of by Rs 239 billion. This represents a growth of about 28.6 per cent over the collection of Rs 3,778 billion during the same period, last year.

    The net collection for the month of April, 2022 realized Rs 480 billion representing an increase of 24.9 per cent over Rs 384 billion collected in April, 2021.

    On the other hand, the gross collections increased from Rs 3,981 billion during July, 2020-April, 2021 to Rs 5,122 billion in current Financial Year July, 2021- April, 2022, showing an increase of 28.7 per cent.

    READ MORE: FBR issues sales tax refund rules for tractor manufacturers

    Finance Minister Miftah Ismail acknowledged the growth saying that FBR collected Rs 5122 billion in current FY (Jul 21- Apr 22) up from Rs 3981 billion during Jul 20-April 21, registering 28.7 per cent growth. Refunds of Rs Rs264 billion disbursed during July 2021-April 2022 compared to Rs 203 billion paid last year, up by 30.1 per cent. “The FBR team deserves appreciation”.

    A big factor in the increase however was increased imports. For instance, sales tax at import stage grew by 58 per cent while it declined by 2 per cent for local goods. “With the right mix of policies and tools I am sure this team will perform even better and to the expectations of the nation,” the finance minister added.

    READ MORE: Tax officials warned of strict action for private consultancy

    Shaukat Tarin, the former finance minister of PTI government, responded to the current finance minister, saying: “Miftah Bhai, if FBR has done such a good job, you should not have changed its Chairman.”