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  • FBR exempts customs, regulatory duty on Afghan goods

    FBR exempts customs, regulatory duty on Afghan goods

    ISLAMABAD: The Federal Board of Revenue (FBR) allowed exemption from customs duty, additional customs duty, and regulatory duty on import of various goods from Afghanistan.

    The FBR on Thursday issued three different statutory regulatory orders (SROs) to allow exemptions on various products on import from Afghanistan.

    Through SRO 1609(I)/2021, the FBR exempted the import into Pakistan from Afghanistan from whole of the customs duty on items, included (HS Codes): coal (2701.1900); bituminous coal (2701.1200); talc (2526.1010); marble (crude or roughly trimmed) (2515.1100); plants and parts of plants (including seed and fruit) (1211.9000); seed of cumin neither crushed nor grounded (0909.3100); suphur of all kinds, other than sublimed suplhur (2503.0000); Yams (dioscorea spp.) (0714.3000); and containers (including containers for the transport of fluids) (8609.00000.

    The notification shall be effective till June 30, 2022.

    The FBR through SRO 1610(I)/2021 allowed concessions of regulatory duty. “Regulatory duty on import of marble (crude or roughly trimmed) falling under PCT code 2515.1100 shall be exempted and regulatory duty on import of ground nuts in shell falling under PCT code 1202.4100 shall be reduced from 20 per cent to 10 per cent, if imported from the Islamic Republic of Afghanistan).”

    The notification shall be effective till June 30, 2022.

    Through SRO 1611(I)/2021 exemption of additional customs duty has been granted on: “import of goods falling under PCT codes 0714.3000, 0909.3100, 1211.9000, 2526.1010, 2515.1100, 2701.1200, 2701.1900 and 8609.0000, if imported from Islamic Republic of Afghanistan.”

    The notification shall be effective till June 30, 2021.

    READ MORE: Tarin directs FBR to ensure security of taxpayers’ data

  • EOBI to launch self assessment scheme for employers

    EOBI to launch self assessment scheme for employers

    KARACHI: Employees Old-Age Benefits Institution (EOBI) has proposed a self assessment scheme under which the institution may select companies through random balloting for audit.

    EOBI Chairman Shakeel Ahmed Mangnejo said that for the convenience of employers as well as to encourage more contributions from them, a Self-Assessment Scheme is proposed in the upcoming amendment into the EOBI Act, under which, companies to be audited shall be selected by random balloting.

    READ MORE: EOBI pension to increase Rs15,000 per month

    He was addressing the SITE Association of Industry (SAI).

    EOBI Chairman announced to make EOBI Helpdesk at SITE Association functional with immediate effect and depute an officer to attend the Helpdesk at least once in a week for better coordination between registered employers and EOBI as well as to resolve issues of members of the Association.

    Expressing views on minimum wage and contribution, Chairman EOBI asked the industrialists to make payment at Rs. 13,000/- wage and clear the backlog as the EOBI fund is also facing difficulties.

    He gave the option of installments to those who are paying contributions of less than 780/- per month to clear their backlog.

    READ MORE: SITE Association demands reversing policy rate at 7%

    He further informed that EOBI is currently paying Rs50 billion per annum to more than 400,000 pensioners. Therefore, everyone should pay a contribution on time Rs13000 minimum wage in the larger interest of registered workers and suggested to report harassment cases under Section 35 of the Act – a portal for this is already active on their website.

    Replying to a query from Ex-President Saleem Parekh regarding sharing of EOBI accounts, Chairman EOBI informed that un-audited accounts up to the year 2020, together with minutes of BOT, have been placed on the website of EOBI.

    Chairman EOBI further said that companies whose contributions exceed Rs. 100,000/month would be bound to pay their contributions through EOBI’s automated Facilitation System (FS) from 1st February 2022. This is necessary to maintain an accurate record of registered workers. By March 2022, EOBI is expected to launch its mobile app as well.

    READ MORE: SITE Association signs MoU for tax return filing

    Earlier, President of SITE Association of Industry Abdul Rasheed, while welcoming the guests, said that a representative of SITE Association should be taken in the Board of Trustees of EOBI and stressed the need to re-activate EOBI Helpdesk at SITE Association as per past practice. He mentioned that collection targets issued by EOBI should be avoided and inspection of records should be done only once in a year. He also highlighted the issues being faced by pensioners, particularly widows, in getting pension.

    SVP Saud Mahmood briefed members on the Profile of Shakeel Ahmed Mangnejo who is very well qualified and highly accomplished in all his previous postings.

    Chairman of Labour Sub-Committee Abdul Kadir Bilwani on this occasion briefed the Chairman EOBI on the issues being faced by the employers and employees of SITE area which in particular included delay in issuance of pension cards, release of pending applications of pensioners for payments, relief in inspection audits given the COVID situation to help Industrialists, harassment of Industrialists by audit inspectors and unnecessary demand of company financials.

    READ MORE: SITE Association hails FBR chairman’s no bank account freezing decision

    Former president Jawed Bilwani said that industrialists are actual stakeholders of the country who generate employment, pay taxes and earn sorely needed foreign exchange. He demanded that representatives of employers in EOBI should provide evidence of having taken input from all industrial area associations before making any decision to avoid litigation.

    Former president Younus Bashir on this occasion expressed views about EOBI audit and collection target, notorious activities of labour leaders in industrial areas and stressed the need to avoid time-consuming litigation and drew the attention of EOBI Chairman towards labour representatives’ conduct in the EOBI meetings. He also suggested linking the number of employees with the power & gas consumption of the industry for a better and holistic view of operations as opposed to arbitrary assumptions.

    Dr. Javed Sheikh, Deputy Director General and Ali Muttaqi Shah, Regional Head, Nazimabad Region, EOBI, Abdul Rasheed, President of SITE Association of Industry, Saud Mahmood, SVP SAI, Muhammad Kamran Arbi, VP, Chairman of Labour Sub-Committee Abdul Kadir Bilwani, Former president Jawed Bilwani, Former president Younus Bashir, Tariq Yousuf, Sikandar Imran, Anwer Aziz, Saleem Nagaria, Muhammad Riaz Dhedhi, Azeem M. Afzal Motiwala, Touseef Ahmed, Farhan Ashrafi, Hussain Moosani, Junaid-ur-Rehman, Haris Shakoor, Shahid Ghazanfar and others were also present in the meeting.

  • Dollar tops new record high at Rs178.15

    Dollar tops new record high at Rs178.15

    KARACHI: The deterioration in Pak Rupee (PKR) rupee continued on Wednesday as the dollar topped another record high at Rs178.15.

    The rupee lost 10 paisas against the dollar to end at the fresh low of Rs178.15 as compared with last day’s closing of Rs178.05, the previous low of the rupee, in the interbank foreign exchange market.

    READ MORE: Dollar advances to new historic high of Rs178.05

    Currency experts believed that the high dollar demand for import and corporate payments was due to year-end.

    They said that by every quarter end entities operating in Pakistan repatriate profit and dividend to their parent companies abroad.

    READ MORE: SBP sets limits for sale of foreign exchange to individuals

    The experts said that current account deficit and trade deficit had kept pressure for dollar demand.

    Pakistan’s current account deficit has ballooned to $7 billion during the first five months (July – November) 2021/2022.

    The trade deficit widened by 112 per cent to $20.65 billion during the period under review as compared with $the deficit of 9.72 billion in the same period of the last fiscal year.

  • Dollar advances to new historic high of Rs178.05

    Dollar advances to new historic high of Rs178.05

    KARACHI: The US dollar advanced to make a new record high at Rs178.05 on Tuesday at the closing of the interbank foreign exchange market.

    The Pak Rupee fell by one paisa against the dollar from the previous day’s closing of Rs178.04, which was the previous record low of the local currency.

    READ MORE: Dollar hits record high of Rs178.04 at interbank closing

    Currency experts said that the market had witnessed high demand for the dollar during the day. However, the latest curbs imposed by the State Bank of Pakistan (SBP) prevented the local currency from deteriorating.

    The SBP on last Sunday restricted foreign exchange buying by individuals to discourage speculative gains.

    READ MORE: SBP sets limits for sale of foreign exchange to individuals

    The SBP measure helped the local currency to resist the dollar during the past two days. But the latest numbers of the balance of payment further created uncertainty about the rupee stability.

    The current account deficit has widened to $7 billion during the first five months (July – November) 2021/2022. The current account posted a surplus of $1.87 billion in the same period of the last fiscal year.

  • Prize bond (bearer) holders given 3 months to document

    Prize bond (bearer) holders given 3 months to document

    ISLAMABAD: The holders of unregistered or bearer prize bonds have been given three months to exchange or covert with the documented ways otherwise the bills will have no worth after the deadline.

    Through different notifications, the Finance Division has notified extension to exchange or conversion of high denomination unregistered/bearer prize bonds up to March 31, 2022, from the existing date of December 31, 2021.

    READ MORE: History of Prize Bonds in Pakistan

    The government allowed to exchange the bearer prize bonds with denominations including Rs7,500, Rs15,000, Rs25,000, and Rs40,000.

    In June 2019, the government decided to discontinue high denomination bearer bonds in a phased manner. The 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.

    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 SBP Banking Services Corporation, 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 Banking Services Corporation as well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

    READ MORE: Sale of Prize Bonds Rs7,500, Rs15,000 stopped forthwith

    The State Bank of Pakistan (SBP) data showed that bearer bonds worth Rs28 billion were still in the possession of the investors by the end of October 2021.

    However, the bondholders surrendered these bills worth Rs437.59 billion during the last one year. The stock of these bearer bonds is Rs465.59 billion by October 2020.

    READ MORE: Date extended for exchanging bearer prize bonds

  • SBP sets limits for sale of foreign exchange to individuals

    SBP sets limits for sale of foreign exchange to individuals

    KARACHI: State Bank of Pakistan (SBP) has issued instructions to exchange companies and set limits for the sale of foreign currency to individuals.

    The SBP issued a circular dated December 19, 2021 and revised instructions in Exchange Companies Manual.

    The central bank said that exchange companies may sell foreign currency to individuals while ensuring the following limits:

    Maximum limit per person per day for buying foreign currency (in the form of cash or outward remittance) from all ECs/ECs-B, is $10,000 or equivalent in other foreign currencies.

    Maximum limit per person per calendar year for buying foreign currency (in the form of cash or outward remittance) from all ECs/ECs-B, is $100,000 or equivalent in other foreign currencies.

    READ MORE: SBP revises manual on remittances for petroleum sector

    For this purpose, the Exchange Companies shall obtain an undertaking from individual customer at the time of each sale transaction exceeding $1,000/- (or equivalent in other currencies) that they have not already reached the limit of $100,000/- per calendar year or $10,000/- per day from all ECs/ ECs-B and these limits will not be breached after the current transaction.

    In order to enhance documentation and transparency and to further strengthen the regulatory regime for ECs/ECs-B, the SBP decided to amend the applicable regulations relating to the business of ECs/ECs-B. Accordingly, the relevant instructions in the following Paras of Exchange Companies Manual stand amended as under:

    READ MORE: State Bank reduces retention period for foreign exchange

    For all foreign currency sale transactions equivalent to $500/- or above Exchange Companies will retain copies of identification documents i.e., Computerized National Identity Card (CNIC) /National Identity Card for Overseas Pakistanis (NICOP)/ Pakistan Origin Card (POC) / Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan) after having seen the document in original.

    In addition, Exchange Companies shall also carry out biometric verification of Pakistani Nationals for all such transactions and maintain the record thereof. Exchange Companies will also obtain supporting documents related to the purpose (as stated by the customer) of FCY sale transactions, exceeding USD 1,000 or equivalent in other currencies.

    READ MORE: SBP revises manual to facilitate cross border payments

  • Exchange rate declaration must for services exports

    Exchange rate declaration must for services exports

    KARACHI: The Sindh government has made mandatory the requirement of exchange rate declaration to avail sales tax concessions on export of services.

    In this regard, the Sindh Revenue Board (SRB) issued a notification to amend Sales Tax on Services Rules, 2011.

    The provincial revenue board amended the changes in Annex-D of the Sindh Sales Tax on Services Return in Form SST-03.

    The decision to amend the rules has been taken considering the high volatility in exchange rate as the Pak Rupee hit record low at Rs178.04 on December 17, 2021 and lost around 13 per cent against the dollar since start of the current fiscal year.

    READ MORE: Dollar hits record high of Rs178.04 at interbank closing

    As per the amended sales tax on service return form, an exporter is required to provide name of the foreign buyer or the non-resident service recipient. The other details shall be provided by the exporters, included: country to which service exported; description of the service exported; tariff heading of the service exported; 4-digit code as per State Bank of Pakistan (SBP) Code List; Invoice No.; Invoice Date etc.

    The exporters are also required to value of the service exported, included: in foreign exchange (with currency name); exchange rate; in Pak Rupee.

    The exporters further required to provide details, included: amount of sales tax involved being claimed to be exempt (in Pak Rupee); Reference No. of the notification / authority for exemption; and actual/estimated date for receipt of sale value in foreign exchange.

  • IMF intervention to add economic miseries of Pakistan

    IMF intervention to add economic miseries of Pakistan

    Business leaders have raised serious concerns over the continuous intervention of the International Monetary Fund (IMF), warning that its influence is exacerbating Pakistan’s economic struggles.

    (more…)
  • Dr. Alvi rejects banker’s plea in woman harassment case

    Dr. Alvi rejects banker’s plea in woman harassment case

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, has rejected a petition filed by a banker for reinstatement into service, who was sacked for harassing a woman.

    The petitioner filed the appeal before the president against the decision of the Federal Ombudsman for Protection against Harassment of Women at Workplace which had modified the punishment of “dismissal from service” into “removal from service”.

    READ MORE: President Alvi rejects MCB Bank’s appeal in fraud case

    The President upheld the orders of the ombudsman noting that the petitioner was awarded the penalty of dismissal from service after inquiry wherein allegations of harassment stood established against him and the petitioner had failed to point out any illegality with the order of the learned ombudsman.

    According to the background of the case, Naeem Iqbal was appointed as Bank Cashier Grade-1 at Bank Alfalah Ltd, on February 01, 2006, and he was later promoted to Operation Officer, Counter Services Manager and Branch Operation Manager in 2010, 2014 and 2016 respectively.

    READ MORE: President Alvi orders two banks to pay victims of fraud

    Ms Habiba Rauf had filed a complaint before the management of the bank alleging acts of harassment against the accused.

    After inquiry, Iqbal was found guilty and, consequently, dismissed from the service by Bank Alfalah Ltd.

    After making a representation before the competent authority, he filed an appeal before the Woman Ombudsman who ordered that the appeal of the accused deserves outright dismissal, yet, on considering his long service and the fact that he has a large family, consisting of small kids and aged parents, leniency in punishment looks more appropriate and nearer to justice and fair play.

    READ MORE: President Alvi orders State Life to pay death insurance

    The ombudsman, therefore, modified the punishment of “dismissal from service” into “removal from service” and disposed of his appeal.

    Subsequently, Naeem Iqbal filed a representation with the President for reinstatement into service. While disposing of his appeal, the President noted that the petitioner was seeking setting aside of the order of the bank, dated March 18, 2019, and reinstatement into service purely on humanitarian grounds.

    The learned Ombudsman had already converted the penalty of dismissal to removal from service on such grounds.

    The President observed that since the petitioner had failed to point out any illegality with the order and no justification existed to interfere with the order of the Ombudsman, therefore, the instant representation is dismissed.

    READ MORE: Dr. Alvi opens property exhibition for UAE based NRPs