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  • 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.

  • Sales tax exempted on all petroleum products

    Sales tax exempted on all petroleum products

    ISLAMABAD: The government on Tuesday granted sales tax holiday on supply of all petroleum products to bring down the impact of high prices.

    In order to implement sales tax exemption on all the petroleum products, the Federal Board of Revenue (FBR) issued SRO 321(I)/2022.

    As per the SRO the sales tax has brought to zero per cent on petroleum products, including petrol, high speed diesel, kerosene and light diesel oil.

    The FBR previously issued SRO 183(I)/2022 on February 10, 2022 to notify reduction the sales tax rates on petroleum products. According to this notification, the light diesel oil was cut to zero per cent sales tax. The sales tax rates on other petroleum products were: 0.79 per cent on petrol; 3.17 per cent on high speed diesel; and 5.3 per cent on kerosene.

    READ MORE; FBR announces sharp cut in sales tax on POL products

    A day earlier, Prime Minister Imran Khan announced major relief by reducing prices of petroleum products and cut in electricity tariff. The prime minister also announced to keep the prices unchanged till upcoming budget. The prices of petrol and diesel have been slashed by Rs10 per liter on both the products.

    The latest move to bring the sales tax at zero per cent on supply of petroleum products is also connected to the announcement. By reducing the sales tax the government has absorbed impact of high oil prices and prevent passing the high prices to the masses.

    READ MORE: FBR slashes sales tax rates on petrol, HSD

    A statement issued by the Finance Division a day earlier stated that the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.

    The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

  • Pakistan cuts petroleum prices amid Russia-Ukraine War

    Pakistan cuts petroleum prices amid Russia-Ukraine War

    ISLAMABAD: Pakistan on Monday decided to reduce the prices of petroleum products despite the high international oil prices in the wake of Russia-Ukraine war.

    The finance division issued the notification to cut the prices of petrol and diesel by Rs10 per liter each from March 01, 2022.

    READ MORE: Pakistan raises petrol price to record high at Rs160/liter

    According to a statement issued by the finance division, the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.

    The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.

    READ MORE; Petroleum prices kept unchanged for next fortnight

    In the fortnightly review on February 28, 2022, the Oil and Gas Regulatory Authority (OGRA) recommended Rs10 per liter increase in the prices of petroleum products.

    “The prime minister has not only rejected the increase but also announced to decrease the prices of petroleum products by Rs10 per liter in his address to the nation in order to provide maximum relief to the consumers, despite the limited fiscal space,” it added.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    According to the statement the new prices of the petroleum products effective from March 01, 2022 are:

    The price of petrol slashed by Rs10 to Rs149.86 per liter from Rs159.86.

    The rate of high speed diesel has been reduced by Rs10 to Rs144.15 per liter from Rs154.15.

    READ MORE: Prices of all POL products increased to wish New Year

    The price of kerosene oil has been brought down by Re1 to Rs125.56 per liter from Rs126.56.

    Similarly, the rate of light diesel oil has been slashed by Rs5.66 to Rs118.31 per liter from Rs123.97.

  • PM Imran reduces, freezes POL prices

    PM Imran reduces, freezes POL prices

    ISLAMABAD: Prime Minister Imran Khan on Monday announced reduction in prices of petroleum products and electricity tariff and further announced to freeze the reduced rates till upcoming federal budget.

    The Prime Minister provided the relief by slashing prices of petroleum and electricity to provide massive relief to the people.

    In his address to the nation on Monday, he said prices of petrol and diesel will be reduced by ten rupees per litre and electricity by five rupees per unit.

    The Prime Minister also announced to award internship to all jobless graduates worth 30,000 rupees per month. He said 26,000 scholarships, costing 38 billion rupees will be given to students.

    He said his recent visits to China and Russia will have far reaching impact on country’s economy.

    The Prime Minister said we are going to import two million tons of wheat and gas from Russia, while we have better understanding on the second phase of China-Pakistan Economic Corridor.

    Imran Khan said he believes in an independent policy in the best interest of the people of Pakistan.

    He urged the people to not vote for a party, whose leader is involved in corruption as such parties cannot pursue an independent foreign policy.

    PM Imran, President Putin discuss regional development
  • FBR registration made mandatory for housing projects

    FBR registration made mandatory for housing projects

    ISLAMABAD: Registration with the Federal Board of Revenue (FBR) has been made mandatory in order to prevent money laundering in real estate industry, according to an official note issued on Monday.

    The FBR said that the Anti-Money Laundering Act, 2010 empowers it to license or register Designated Non-Financial Businesses and Professions (DNFBPs), impose conditions to conduct any activities by the DNFBPs and issue directions with respect to the relevant provisions of the AML Act.

    READ MORE: FBR transfers IRS officers BS-17 to BS-20

    Now, in exercise of powers conferred under section 6A of the AML Act read with clause 1(iii) of Schedule IV ibid, and in pursuance to Condition No.1 of 2021 issued on 25 November 2021, the FBR is pleased to impose the following condition on all the Public Sector Development Departments/Authorities in order to strengthen the anti-money laundering and countering financing of terrorism regime in the country; namely:-

    “No Public Sector Development Department/Authority shall provide any NOC/Approval/Permission to any kind of Real Estate Development Authority or Housing Society (commercial/residential) unless the applicant is registered with the Federal Board of Revenue as a Designated Non-Financial Business and Profession (DNFBP) and has also appointed or nominated AIVIL/CFT Compliance Officer.

    READ MORE: Sindh High Court stops tax recovery against SSGC

    The Public Sector Development Department/Authorities shall also ensure that previously approved Real Estate Authorities or Societies falling in their respective jurisdiction and currently in business are registered with FBR as DNFBPs and have appointed or nominated AML/CFT Compliance Officers.”

    READ MORE: FBR says not to extend sales tax return filing date

    The Public Sector Development Departments/Authorities shall immediately issue instructions to the staff concerned and respective housing authorities or societies for registration with FBR as DNFBPs and appointment or nomination of AML/CFT Compliance Officers without fail. The real estate development authorities or societies may also be informed to obtain Registration Certificate from the concerned Director, DNFBPs once registered as a DNFBP with FBR.

    This Condition comes into effect on March 15, 2022.

    READ MORE: FBR assures Customs agents of resolving issues