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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.

  • Pakistan stocks nosedive on world oil, political unrest

    Pakistan stocks nosedive on world oil, political unrest

    KARACHI: Pakistan’s stocks plunged by 1,284 points on Monday owing to sharp increase in world oil prices and political unrest locally.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,267 points as against last Friday’s closing of 44,551 points, showing a decrease of 1,284.38 points.

    READ MORE: Weekly Review: market to remain jittery

    Analysts at Arif Habib Limited said that bloodbath session was observed today due to political unrest and overheated commodities cycle.

    Market opened in the red zone and stayed under pressure throughout the day. Across the board selling was witnessed by the institutional investors.

    READ MORE: Stocks gain 25 points in range bound trading

    In the last trading hour, value buying was observed mainly in the E&P sector.

    Sectors contributing to the performance include Cement (-235.2 points), Banks (-222.1 points), Technology (-159.2 points), Fertilizer (-97.8 points) and Power (-91.3 points).

    READ MORE: Stocks make slight gain amid higher fuel price concerns

    Volumes increased from 134.8 million shares to 236.9 million shares (+75.7 per cent DoD). Traded value also increased by 73.4 per cent to reach US$ 46.1 million as against US$ 26.6 million.

    Stocks that contributed significantly to the volumes include HUMNL, WTL, FLYNGR1, TRG and TELE.

    READ MORE: Stocks shed 289 points on high global commodity prices

  • Rupee ends near record low against dollar

    Rupee ends near record low against dollar

    KARACHI: The Pak Rupee (PKR) ended near to historic low against the dollar on Monday owing to oil prices spiked to multi-year high in international markets.

    The rupee fell by 63 paisas and was trading at Rs178.13 to the dollar as compared with last Friday’s closing of Rs177.50 in interbank foreign exchange market.

    READ MORE: PKR gains 33 paisas to dollar after 3-day depreciation

    The rupee recorded historic low at Rs178.24 to the dollar on December 29, 2021.

    Currency experts said that the uncertainty over oil prices pressured the local currency. The oil prices soared to $140 per barrel in international markets.

    READ MORE: Dollar up 21 paisas to PKR amid surge in global oil prices

    They said that the rising international oil prices were still threat to the rupee stability. The rupee was witnessed sharp decline since start of Russia-Ukraine war, which resulted in massive jump in international oil prices.

    READ MORE: Dollar surges 21 paisas to PKR on high oil price concerns

    Pakistan’s import bill of petroleum group recorded an increase of 107 per cent to $11.7 billion during first seven months of the current fiscal year as compared with $5.64 billion in the corresponding months of the last fiscal year.

    The surge in dollar demand for import bill will further weaken balance of payment as current account deficit already touched record in January 2022.

    READ MORE: Dollar eases by six paisas to PKR

    The country’s Current Account Deficit (CAD) surged to its highest ever monthly deficit of $2.6 billion in January 2022 ($1.9 billion in December 2021) taking CAD of $11.6 billion during the first seven months of the current fiscal year.

  • FBR allows 20-year old house value to open plot

    FBR allows 20-year old house value to open plot

    ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the value of immovable property constructed more than 20 years equal to the value of open plot.

    According to property valuation for Karachi issued through SRO 345(I)/2022, the FBR issued a fresh property valuation for the residential and open plots located in various parts of the city.

    READ MORE: FBR re-notifies valuation of immovable properties

    The property registrar of the provincial government will collect withholding tax on the behalf of the FBR on the basis of property valuation fixed by the federal tax authority.

    The FBR allowed reduction in valuation of properties on the basis of age of the built up structure.

    It said that the value of residential built up property (including basement and first floor) is allowed to be reduced according to the following criteria:

    01. Age of built up structure up to five years: no reduction is allowed in value.

    02. Age of built up structure between five to 10 years: five per cent has been allowed as reduction in value.

    03. Age of built up structure between 10 to 15 years: 7.5 per cent has been allowed as reduction in value.

    04. Age of built up structure between 15 to 20 years: 10 per cent has been allowed as reduction in value.

    05. Age of built up structure more than 20 years: the value shall be equal to an open plot.

    The FBR further allowed reduction in value of built up properties (flats and apartments) according to following criteria:

    01. Age of built up structure up to five years: no reduction will be allowed in value.

    02. Age of built up structure between five to 10 years: 10 per cent has been allowed as reduction in value.

    03. Age of built up structure between 10 to 20 years: 20 per cent has been allowed as reduction in value.

    04. Age of built up structure between 20 to 30 years: 30 per cent has been allowed as reduction in value.

    05. Age of built up structure more than 30 years: 50 per cent has been allowed as reduction in value.

    The FBR also allowed reduction in value of commercial built up property according to the following criteria:

    01. Age of built up structure up to 10 years: no reduction is allowed.

    02. Age of built up structure between 10 to 15 years: 5 per cent has been allowed as reduction in value.

    03. Age of built up structure between 15 to 20 years: 8 per cent has been allowed as reduction in value.

    04. Age of built up structure more than 20 years: 10 per cent has been allowed as reduction in value.

    The FBR said that the value of Commercial Plots of Defence Housing Authority facing Khayaban is increased by 10 per cent.

    The value of commercial built up excluding ground floor has been reduced by 25 per cent.

    The value of Residential Plots (Defence Housing Authority) of following categories may be decreased by 25 per cent:-

    01. Nala facing plot

    02. Commercial facing plot

    03. School facing, mosque facing plot/Graveyard facing plot.

    04. Rear plot (Back Side plot)/Triangle plot

    For further details download new FBR’s property valuation for Karachi city.

  • FBR re-notifies valuation of immovable properties

    FBR re-notifies valuation of immovable properties

    ISLAMABAD: The Federal Board of Revenue (FBR) has re-notified fresh and revised valuation of immovable properties.

    The FBR on March 02, 2022 issued re-notified the valuation tables of immovable properties for major cities of the country.

    The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022. The FBR once again deferred the implementation on the valuation table till February 28, 2022.

    The revenue body decision to defer the implementation came after several complaints received by the FBR those were pertaining to high valuation in the new tables.

    The complaints were lodged by stakeholders including real estate agents and town developers, who pointed out extraordinary rise in property rates in the latest valuation tables.

    The FBR issued detailed instructions to the tax offices on the procedure to be adopted to review the anomalies in the property rates and rationalize the same.

    Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.

    The FBR asked all the Chief Commissioners Inland Revenue (CCIRs) to constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021.

    Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. Chief Commissioners will undertake consultative process with the stakeholders and engage SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.

    To issue the fresh and revised valuation tables, the FBR exercised its powers vested in the Income Tax Ordinance, 2001. The aim was to bring the FBR values at par with the fair market values.

    However, certain objections from stakeholders highlighted anomalies and aberrations in the newly notified valuation tables. Although, the notified valuations have been arrived at by FBR Field Formations through a rigorous consultative process and wherefore have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.

    Following are the valuation tables re-notified by the FBR:

    Abbottabad
    Attock
    Bahawalnagar
    Bahawalpur
    Chakwal
    Dera Ismail Khan
    DG Khan
    Faisalabad
    Ghotki
    Gujranwala
    Gujrat
    Gwadar
    Hafizabad
    Hyderabad
    Islamabad
    Jhang
    Jhelum
    Karachi
    Kasur
    Khushab
    Lahore
    Larkana
    Lasbela
    Mandi Bahauddin
    Mansehra
    Mardan
    Mirpurkhas
    Multan
    Nankana
    Narowal
    Peshawar
    Quetta
    Rahim Yar Khan
    Rawalpindi
    Sahiwal
    Sarghoda
    Sheikhupura
    Sialkot
    Sukkur
    Toba Tek Singh
  • PM Imran directs implementing incentives for IT industry

    PM Imran directs implementing incentives for IT industry

    ISLAMABAD: Prime Minister Imran Khan on Friday directed the authorities to timely implement incentives for freelancers and IT industry as announced by the government.

    The prime minister, chairing a meeting to review the incentives being provided to the IT sector, said the government was extending maximum facilitation to the sectors with immense potential to support the national economy.

    READ MORE: PM Imran reduces, freezes POL prices

    Mentioning the historic package announced by the government for promotion of the IT sector, he said the government had introduced massive reforms to facilitate the business sector.

    He viewed that the facilitation of the skilled freelancers would lead to increasing the remittances as promotion of the IT exports was among the government’s priorities.

    The participants of the meeting were apprised of the implementation status of the incentives for the startups, industrial sector and IT companies.

    READ MORE: PM Imran announces setting up technology startup fund

    It was told the implementation of the government’s recently announced industries and IT package was going on with fast pace and an increase in the number of freelancers had been witnessed consequent to the government’s measures.

    The meeting was told that the one-step registration of freelancers through the portal of Pakistan Software Export Board had been ensured which would automatically register them with the Federal Board of Revenue.

    READ MORE: Tax reduced on POL products to ease inflation: PM Imran

    Moreover, the State Bank of Pakistan was also taking steps to ensure the transfer of freelancing funds from abroad through the banking channels. Besides, a mechanism to take benefit from the tax exemptions for the IT companies would also be in place very soon.

    An awareness system to ensure the implementation of the announced facilities through commercial banks would also be initiated.

    READ MORE: PM Imran launches 2nd phase of Raast payment system

    Federal ministers Asad Umar, Hammad Azhar, Chairman of Special Technology Zones Authority Amer Hashmi, and senior officers attended the meeting. Governor of State Bank Raza Baqir joined via video link.

  • Pakistan, Saudi Fund sign debt service suspension pacts

    Pakistan, Saudi Fund sign debt service suspension pacts

    ISLAMABAD: Pakistan and Saudi Fund for Development (SFD) have signed debt service suspension agreements amounting $846 million, a statement said on Thursday.

    The agreements have been signed under the G-20 Debt Service Suspension Initiative (DSSI) Framework.

    Nawaf bin Saeed Al-Malkiy, Ambassador of the Kingdom of Saudi Arabia to Pakistan witnessed the signing ceremony held in Islamabad.

    READ MORE: SBP signs $3bn deposit agreement with Saudi Fund

    Dr. Saud Ayid R. Alshammari, Director General for Asia represented the SFD in the signing ceremony.

    This amount which was due to be paid during the testing period from May 2020 to December 2021 will now be repaid over a period of six years starting from 2022 in semi-annual installments.

    READ MORE: Saudi oil facility for Pakistan to start soon

    Due to the support extended by the Saudi Fund for Development – one of the major bilateral development partners of Pakistan – along with other bilateral creditor countries, the G-20 DSSI has provided the fiscal space which was necessary to deal with the urgent health and socioeconomic needs of the Islamic Republic of Pakistan.

    The total amount of debt that has been suspended and rescheduled under the DSSI framework, covering the period from May 2020 to December 2021, is $ 3,688 million.

    READ MORE: KSA extends oil on deferred payments to Pakistan

    Pakistan has already concluded and signed 80 agreements with 21 bilateral creditors for the rescheduling of its debts under the G-20 DSSI framework, amounting to rescheduling of $ 2,088 million.

    The signing of agreements with the Saudi Fund for Development brings the total rescheduled amount to $ 2,934 million while negotiations for the remaining $ 754 million are underway.

    The agreements for this amount are expected to be signed with respective bilateral development partners within the current fiscal year.

    READ MORE: PM Imran thanks Saudi assistance; dollar retreats

  • Tax amnesty launched for setting up new industrial units

    Tax amnesty launched for setting up new industrial units

    ISLAMABAD: The federal government on Thursday launched a tax amnesty scheme for setting up new industrial units. The amnesty scheme has been introduced through a presidential ordinance.

    Under the amnesty scheme, the Federal Board of Revenue (FBR) will not ask the source of funds to be utilized for setting up the new industrial undertaking. However, five per cent tax shall be levied for whitening the money.

    READ MORE: FBR issues new list of active taxpayers

    According to the Income Tax (Amendment) Ordinance, 2022, any eligible person may file a statement by September 30, 2022, declaring the amount of funds (which have not been declared in any of the returns of income up to tax year 2021 filed by December 31, 2021) for investment in a new company formed for establishing and operating an industrial undertaking in accordance with this section.

    The funds shall be deposited in rupees in a dedicated bank account in Pakistan as equity of the newly formed company, incorporated under the Companies Act, 2017 (XIX of 2017), before the filing of the statement and such funds shall only be used for purchase or import of plant and machinery through letter of credit or for construction of building and structure for the industrial undertaking.

    READ MORE; FBR launches new Active Taxpayers List; return filing grows by 58%

    The minimum amount which would qualify for the purposes of this section shall be fifty million rupees.

    The provisions of section 111 of the Income Tax Ordinance, 2001 (related to undisclosed income) shall not apply to the funds declared subject to fulfilment of conditions as laid down in this section and payment of an amount equal to five percent thereof along with the statement filed.

    The new industrial undertaking in which such investment is made shall commence commercial production by the June 30, 2024 and a certificate to that effect, duly issued by Engineering Development Board, is submitted to the Commissioner along with the return filed for tax year 2024.

    READ MORE: POS invoice verification for prize scheme surges by 63%

    Any amount of tax paid under this section shall not be refundable or adjustable against any other tax liability of the declarant.

    Where a declarant has paid tax under this section in respect of funds declared under sub-section (1), the declarant shall be entitled to incorporate the same in his wealth statement, financial statements or books of accounts, as the case may be.

    READ MORE: Sales tax exempted on all petroleum products

    For the purposes of this section, eligible person means all persons, except-

    (a)          holders of public office, their spouses and dependent children;

    (b)          a public company as defined in clause (47) of section 2 of this Ordinance;

    (c)           a person who has filed a declaration under the Voluntary Declaration of Domestic Assets Act, 2018, the Foreign Assets (Declaration and Repatriation) Act, 2018, or the Assets Declaration Act, 2019;

    (d)          a person that has been declared a bank loan defaulter by a bank or a financial institution within the last three years; or

    READ MORE: FBR registration made mandatory for housing projects

    (e)          a director of a company who has been declared a bank loan defaulter by a bank or a financial institution within the last three years.

    (7)          The provisions of this section shall not apply to —

    (a)          any proceeds of crime, corruption, money laundering and terror financing;

    (b)          any amount which is subject of any departmental or court proceedings;

    (c)           the investments made in following sectors, namely:–

    (i)            arms and ammunitions;

    (ii)           explosives;

    (iii)          sugar;

    (iv)         cigarettes;

    (v)          aerated beverages;

    (vi)         flour mills;

    (vii)        vegetable ghee; and

    (viii)       cooking oil manufacturing excluding extraction units.

  • FBR issues new list of active taxpayers

    FBR issues new list of active taxpayers

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued new list of active taxpayers on the basis income tax returns filed for tax year 2021.

    According to the new active taxpayers list (ATL), about 2.88 million taxpayers have been placed in the list. About 0.7 million active taxpayers are more in the latest ATL as compared with the previous the last year.

    Names of those taxpayers have been added in the new list who either filed by due date or filed after the expiry date with payment of default surcharge.

    READ MORE; FBR launches new Active Taxpayers List; return filing grows by 58%

    The FBR publishes the ATL every financial year on March 01 and is valid up to the last day of February of the next financial year.

    For example, Active Taxpayer List for Tax year 2020 was published on March 01, 2021 and will be valid till February 28, 2022. Similarly, Active Taxpayer List for Tax year 2021 has been published on March 01, 2022 and will be valid till February 28, 2023.

    The ATL is updated on every Monday on the Federal Board of Revenue (FBR) website.

    A person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL. For example, to be part of the ATL published on March 01, 2021, a person must have filed a Tax return for the Tax year 2020. Similarly, to be a part of the ATL published on March 01, 2022, a person must have filed a Tax Return for the Tax year 2021.

    READ MORE: Late filers may be allowed for Active Taxpayers List

    Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income Tax authorities was introduced through Finance Act, 2018. For example, to be part of the ATL published on March 01, 2022, a person must file a Tax Return by the specified due date for the Tax year 2021.

    However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.

    Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under: Company, Rs20,000: Association of Persons, Rs10,000; and Individuals, Rs1,000.

    READ MORE: Active taxpayers’ list under Income Tax Ordinance

    A company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.

    Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.

    Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.

    READ MORE: How to check active taxpayer status

    The late filers of Income Tax Return for Tax Year 2021 can pay Surcharge for ATL as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

    Only after the payment of surcharge will the name of the late filer become part of ATL.

  • Loans of Rs1 trillion to be given to deserving households

    Loans of Rs1 trillion to be given to deserving households

    ISLAMABAD: Prime Minister Imran Khan has said that loans worth Rs1 trillion will be provided to 4.5 million deserving households by next year.

    He said that this loans will be disbursed under Kamyab Pakistan Program to lift them out of poverty and enable them earn their livelihoods.

    READ MORE: PM Imran reduces, freezes POL prices

    The Prime Minister was addressing a ceremony in connection with launch of disbursement of interest free loans under Kamyab Pakistan Program in Islamabad on Wednesday.

    He said that loans to the tune of 2.5 billion rupees have already been disbursed under the program.

    The Prime Minister said Kamyab Pakistan Program, aimed at taking the country towards a welfare state, will be further expanded.

    READ MORE: PM Imran, President Putin discuss regional development

    Imran Khan said Kamyab Pakistan Program envisages interest free loans of five hundred thousand rupees for businesses, three hundred and fifty thousand rupees for the farmers and two million rupees for the construction of houses.

    He said technical training will also be provided to one member of each deserving family in order to help them stand on their own feet.

    Alluding to other pro people initiatives including health insurance scheme, he said this path, which was envisioned by Philosopher Poet Allama Iqbal, will take the country towards greatness.

    READ MORE: PM Imran announces setting up technology startup fund

    Imran Khan regretted that Pakistan in the past could not achieve its due place in the comity of nations because it did not pursue the ideology for which it was created. He noted that the nations which forget their ideology never succeed.

    The Prime Minister said he is inaugurating Rahmatul-lil Alameen authority tomorrow and the aim is to acquaint our youth with the life and teachings of Hazrat Muhammad Rasool Allah Khatam-un-Nabiyeen Sallallaho Alaihe Wa Ala Alayhee Wa Ashabehi Wassalam.

    READ MORE: Tax reduced on POL products to ease inflation: PM Imran

    Prime Minister Imran Khan also expressed satisfaction over the record revenue collection made by the FBR saying it is because of enhanced revenue, the government was able to reduce the prices of petrol and diesel by ten rupees per liter and the electricity tariff by five rupees per unit. Urging the people to pay their taxes, he assured that this revenue will be used to uplift the poor class and reduce the burden of inflation on the people.

    Finance Minister Shaukat Tarin, on the occasion, highlighted the key features of Kamyab Pakistan Program.

  • Food inflation rural increases by 14.6% in February 2022

    Food inflation rural increases by 14.6% in February 2022

    ISLAMABAD: Food inflation based on consumer price index (CPI) has increased by 14.6 per cent in February 2022 for people living in rural areas as compared with 11.8 per cent in the previous months, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday.

    Meanwhile, the food inflation increased by 14.3 per cent in February 2022 for people living in urban areas as compared with 13.3 per cent in the previous month.

    READ MORE: Pakistan’s inflation climbs up 24-month high in January

    However, non-food inflation for rural areas increased by 12.2 per cent in February 2022 as compared with 13.9 per cent in the previous month. The non-food inflation also grew by 9.9 per cent for people living in urban areas in February 2022 as compared with 12.8 per cent in the previous month.

    CPI inflation general, increased by 12.2 per cent on year-on-year basis in February 2022 as compared to an increase of 13.0 per cent in the previous month and 8.7 per cent in February 2021. On month-on-month basis, it increased by 1.2 per cent in February 2022 as compared to increase of 0.4 per cent in the previous month and increase of 1.8 per cent in February 2021.

    READ MORE: Sales tax exempted on all petroleum products

    CPI inflation general for urban areas increased by 11.5 per cent on year-on-year basis in February 2022 as compared to an increase of 13.0 per cent in the previous month and 8.6 per cent in February 2021. On month-on-month basis, it increased by 0.9 per cent in February 2022 as compared to increase of 0.1 per cent in the previous month and increase of 2.3 per cent in February 2021.

    CPI inflation general for rural, increased by 13.3 per cent on year-on-year basis in February 2022 as compared to an increase of 12.9 per cent in the previous month and 8.8 per cent in February 2021. On month-on-month basis, it increased by 1.5 per cent in February 2022 as compared to increase of 0.9 per cent in the previous month and increase of 1.1 per cent in February 2021.

    READ MORE: PM Imran reduces, freezes POL prices

    Inflation based on Sensitive Price Indicator (SPI) on YoY increased by 18.7 per cent in February 2022 as compared to an increase of 20.9 per cent a month earlier and an increase of 11.9 per cent in February 2021. On MoM basis, it increased by 1.3 per cent in February 2022 as compared to decrease of -0.8 per cent a month earlier and increase of 3.1 per cent in February 2021.

    READ MORE: Mini-budget likely to push up inflation: SBP

    Wholesale Price Indicator (WPI) on YoY basis increased by 23.6 per cent in February 2022 as compared to an increase of 24.0 per cent a month earlier and an increase of 9.5 per cent in February 2021. WPI inflation on MoM basis increased by 1.9 per cent in February 2022 as compared to increase of 0.6 per cent a month earlier and an increase of 2.2 per cent in corresponding month i.e. February 2021.