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  • SBP shortens period to 120 days for bringing export earnings

    SBP shortens period to 120 days for bringing export earnings

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday reduced the period from 180 days to 120 days for exporters to bring export proceeds from the date of shipment.

    The SBP on Wednesday amended foreign exchange regulations requiring exporters to bring export proceeds.

    READ MORE: SBP introduces licensing, regulations for digital banking

    The move also brings in Pakistan’s regulations closer to international best practices, the central bank said.

    It is pertinent to mention here that in recent past, SBP has introduced a number of policy measures in its foreign exchange regulations to facilitate exporters.

    READ MORE: SBP introduces Shariah compliant OMO injections

    These include (i) allowing up to 10 per cent of exporters’ annual exports for equity investment abroad to establish overseas subsidiary/branch office (ii) allowing exporters who are eligible to retain part of their export proceeds to make payments abroad from their export retention account for a number of additional purposes including marketing & promotions, purchase of design/ patterns, warehousing, consultancy service  etc. (iii) facilitating e-Commerce by allowing exporters to sell their products directly through their own websites as well as through international digital marketplaces including Amazon, e-Bay, Ali Baba and (iv) allowing exports by way of dispatch of shipping documents directly to the foreign buyer, to make exporters competitive in the international market.

    READ MORE: SBP directs banks to accept bearer prize bonds

    The new measure is expected to positively impact foreign exchange inflows in the market. SBP is of the view that flexible exchange rate has appropriately played its role as a shock-absorber and it is important that its role be complemented by strong exports proceed realization.

  • Jahangir Tareen’s sugar mill declares 248% rise in annual profit

    Jahangir Tareen’s sugar mill declares 248% rise in annual profit

    The sugar mill of Jahangir Khan Tareen – ruling party PTI’s leader and used to very close to Prime Minister Imran Khan – has declared a phenomenal increase of 248 per cent in annual profit for year ended September 30, 2021.

    Jahangir Khan Tarin is director of JDW Sugar Mills.

    JDW Sugar Mills Limited on Wednesday shared its financial results with the Pakistan Stock Exchange (PSX).

    READ MORE: Digital tax monitoring yields Rs32.43bn from sugar sector

    The board of the company in a meeting held on January 05, 2022 recommended a final cash dividend for the financial year ended September 30, 2021 at Rs10 per share i.e. 100 per cent.

    Gross profit of the company increased to Rs10.13 billion for the year under review as compared with Rs7.59 billion in the preceding year.

    READ MORE: FBR tightens condition for tax stamped sugar bags

    According to JDW website, Tareen’s experience in business world began when he was made the CEO of his family-owned beverages business in Multan in 1981.

    Over the next eight years, he increased the business manifold and in the year 1989 Pepsico International offered him a franchise in Lahore.

    Tareen took over the franchise in 1991 as the Chairman of Riaz Bottlers (Pvt) Limited and developed it into one of the Pakistan’s best operating franchise.

    READ MORE: FPCCI recommends interprovincial trade of sugar

    He went into sugar business and established his first sugar mills in 1992 as JDW Sugar Mills. This has grown into Pakistan’s largest and most efficient Sugar milling operations (JDW Sugar Mills). This is the only Sugar Mill in the country, which is supported by its own Sugarcane Plantation (30,000 acres) and Sugar cane research organisation.

    The Mills runs an extensive community development programme geared towards increasing yield and profitability of small farmers while also funding education and health initiatives in its area of operations.

    The per acre yield of sugarcane in Rahim Yar Khan has doubled due to the Cane Development Program of JDW Sugar Mills. While per acre production cost has been reduced by innovative cultivation and production techniques.

    READ MORE: PSMA, 84 sugar mills served show cause notices for cartelization

    It’s due to the combined efforts of sugarcane development, farmers’ training, motivating farmers with timely payments, that sucrose recovery in the operating area of JDW Sugar Mills jumped from 8.2 per cent to almost 11 per cent in 2016.

  • Rupee recovers one paisa against dollar

    Rupee recovers one paisa against dollar

    KARACHI: The Pak Rupee (PKR) recovered one paisas against the dollar on Wednesday as import payment demand eased in the interbank foreign exchange market.

    The rupee ended Rs176.75 to the dollar from previous day’s closing of Rs176.74 in the interbank foreign exchange market.

    Currency experts said that the local unit was supported by ease in demand for the foreign currency.

    They said that due to recent measures taken by the government regarding import restrictions resulted in recovery in rupee value.

    The local currency recorded an all-time low of Rs178.24 to the dollar on December 29, 2021.

    They said that through Finance (Supplementary) Ordinance, 2021 exemptions on many imported goods have been withdrawn.

    The experts said that falling foreign exchange reserves are still major threat to rupee stability.

    The official foreign exchange reserves of the State Bank of Pakistan (SBP) slipped by $299 million to $17.85 billion by week ended December 24, 2021 when compared with $18.15 billion a week ago.

    Dollar advances to Rs176.75 on post holidays demand
  • FBR raises sales tax on all petroleum products

    FBR raises sales tax on all petroleum products

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday notified an increase in sales tax on all the petroleum products.

    The FBR issued SRO 01(I)/2022 to notify increase in sales tax rates on petroleum products. The FBR amended the rates of sales tax, which were issued previously through SRO 1604(I)/2021 on December 16, 2021.

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

    According to the latest notification enhanced the sales tax on petrol from 1.63 per cent to 4.77 per cent.

    The sales tax rate on high-speed diesel has been increased to 9.08 per cent from 7.37 per cent.

    The FBR enhanced the sales tax on kerosene oil to 8.30 per cent from 8.19 per cent. Likewise, the sales tax on light diesel has been increased to 2.70 per cent from 0.46 per cent.

    The government on December 31, 2021 increased prices of all petroleum products effective from January 01, 2022.

    READ MORE: Petrol price reduces to Rs140.82 per liter

    The prices have been increased across the board around Rs4 per liter on all the products.

    According to a notification issued by the finance division, the new price of petrol has been increased by Rs4 to Rs144.82 per liter from Rs140.82. The rate of high-speed diesel (HSD) has been increased by Rs4 to Rs141.62 per liter from Rs137.62. Similarly, the price of kerosene has been increased by Rs3.95 to Rs113.53 per liter from Rs109.53. Likewise, the price of light diesel oil has been increased by Rs4.15 to Rs111.06 per liter from Rs107.06.

    READ MORE: SBP revises manual on remittances for petroleum sector

    The notification stated that in the fortnightly review of petroleum products prices, the prime minister had rejected the proposal of Oil and Gas Regulatory Authority (OGRA) for an increase in prices of petroleum products and advised to increase only Rs4 per liter to meet the petroleum levy target agreed with the International Monetary Fund (IMF).

    “Sales tax on petrol and diesel has been adjusted downwards as compared to December 16, 2021, to keep the prices lower,” the notification stated.

  • Tax collection from property transactions surges to Rs61 billion

    Tax collection from property transactions surges to Rs61 billion

    ISLAMABAD: The annual collection of withholding tax from transactions of immovable properties has surged by 98 per cent to Rs61.06 billion during fiscal year 2020/2021.

    According to official statistics made available to PkRevenue.com, the collection from sales and purchase of immovable properties was Rs30.77 billion during fiscal year 2019/2020.

    Sources in the Federal Board of Revenue (FBR) attributed the increase in revenue collection to enhanced activities during the fiscal year due ease in restrictions related to coronavirus.

    READ MORE: Advance tax on purchase of immovable property

    They said that the first case of coronavirus was identified in February 2019, and then the government resorted to strict lockdown, which stalled the economic activities.

    However, in the subsequent year the government decided to relax the corona restrictions and brought the economic activities to normal.

    The FBR collects withholding tax under section 236C of the Income tax Ordinance, 2001 on sale and transfer of immovable properties.

    READ MORE: Advance tax on sale or transfer of immovable property

    Furthermore, the FBR collect withholding tax under Section 236K of the Income Tax Ordinance, 2001 on purchase of immovable properties.

    The collection of withholding tax on sale or transfer of immovable properties registered a growth of 76 per cent to Rs7 billion during fiscal year 2020/2021 as compared with Rs12.2 billion in the preceding fiscal year.

    The collection of withholding tax on purchase of immovable properties registered an unprecedented growth of 105 per cent to Rs49 billion during fiscal year 2020/2021 as compared with Rs24 billion in the preceding fiscal year.

    READ MORE: FBR issues new, revised tables of property valuation

    The FBR sources said that the collection during the fiscal year 2021/2022 would increase significantly due to change in valuation tables for the purpose of withholding tax collection from transactions of immovable properties.

    The FBR on December 01, 2021 issued fresh and revised valuation of immovable properties for various cities of the country.

    However, the implementation of the fresh valuation table will be applicable from January 16, 2021.

    READ MORE: FBR postpones property valuation implementation

  • Tax payment with return drops to Rs54 billion in FY21

    Tax payment with return drops to Rs54 billion in FY21

    ISLAMABAD: The voluntary payment along with annual income tax return has dropped to Rs54.09 billion during the fiscal year 2020/2021, according to official data made available to PkRevenue.com

    The tax payment with return was Rs56.5 billion during the fiscal year 2019/2020, according to data compiled by the Federal Board of Revenue (FBR).

    READ MORE: Requirement of filing income tax return by persons

    The primary reason for the decline in voluntary payment in the fiscal year 2020/2021 was a bulk amount was paid along with the returns under the head of the amnesty scheme during the fiscal year 2019/2020.

    An amount of Rs19.8 billion under the amnesty scheme was paid with the returns during the fiscal year 2019/2020.

    READ MORE: Action against concealed, unexplained income or assets

    On the other hand, the collection of tax under Section 137 of the Income Tax Ordinance, 2001 surged to Rs52.62 billion during the fiscal year 2020/2021 as compared with Rs36.23 billion in the preceding fiscal year.

    READ MORE: What is due date for tax payment?

    Furthermore, the collection under Section 113A of the Income Tax Ordinance, 2001, from small retailers also recorded significant growth to Rs1.43 billion during the fiscal year 2020/2021 when compared with Rs418 million in the preceding fiscal year.

    Income Tax Ordinance, 2001 updated till June 30, 2021
  • Pakistan’s trade deficit swells by 100% in 1HFY22

    Pakistan’s trade deficit swells by 100% in 1HFY22

    ISLAMABAD: Pakistan’s trade deficit has doubled to $24.8 billion during first half (July – December) of 2021/2022 1HFY22. The trade deficit was $12.36 billion in the same half of the last fiscal year.

    The import bill of the country surged by 63 per cent to $40 billion during the first half of the current fiscal year as compared with $24.47 billion in the same half of the last fiscal year, according to data shared by Arif Habib Limited.

    READ MORE: Pakistan’s trade deficit widens by 112% to $20.59 billion

    The exports registered a growth of 25 per cent to $15.13 billion during first six months of the current fiscal year as compared with $12.11 billion in the corresponding months of the last fiscal year.

    The trade deficit for the month of December 2021 contracted by 18 per cent to $4.14 billion as compared with $5.03 billion in November 2021.

    READ MORE: Pakistan’s import bill surges by 65% in four months

    Import bill of the country declined by 13 per cent to $6.9 billion in December 2021 as compared with $7.93 billion in November 2021. Meanwhile exports of the country also fell by five per cent to $2.76 billion in December 2021 as compared with $2.9 billion in November 2021.

    READ MORE: Pakistan’s trade deficit doubles in first quarter

  • New rates of FED on local, imported motor vehicles

    New rates of FED on local, imported motor vehicles

    ISLAMABAD: The federal government has proposed enhancement in federal excise duty (FED) on imported and locally assembled vehicles through mini-budget.

    The government on December 30, 2021 presented Finance (Supplementary) Bill, 2021 to take tax measures to generate additional revenue for improve fiscal situation of the country. One of the major revenue measure is increasing the FED on imported and locally manufactured motor vehicles.

    READ MORE: Mini-budget: FBR to generate Rs4.5bn through tax rate increase on cellular services

    Sources said that the Federal Board of Revenue (FBR) had estimated to generate additional Rs6.5 billion through the changes.

     According to the changes proposed, the FED on imported completely built unit (CBU) up to 1,000 CC the rate shall be unchanged at 2.5 per cent ad valorem.

    READ MORE: Mini-budget: income tax rates proposed for foreign TV dramas

    However, CBU imported vehicles between 1001CC to 1799CC the FED has been proposed to enhance to 10 per cent from 5 per cent.

    Similarly, the CBU imported motor vehicles between 1800CC to 3000CC the FED has been increased to 30 per cent from 25 per cent.

    Likewise, the motor vehicles above 3000CC, the FED has been enhanced to 40 per cent from 30 per cent.

    READ MORE: Tax exemptions worth Rs343 billion withdrawn through mini-budget

    The FED on locally manufactured motor vehicles has been kept unchanged at zero per cent for engine capacity up to 1000CC.

    However, motor vehicles with engine capacity between 1000CC to 2000CC and exceeding 2000CC, the FED has been enhanced to 5 per cent from 2.5 per cent and enhanced to 10 per cent from 5 per cent, respectively.

    The Federal Board of Revenue (FBR) said that the FED has been announced to increase to 30 per cent from existing rate of 25 per cent on import of double cabin (4X4) pick-up vehicles.

    Similarly, the FED on locally manufactured double cabin (4X4) has been increased to 10 per cent from existing rate of 7.5 per cent.

    READ MORE: Mini-budget: Advance tax on motor vehicles doubles

  • Headline inflation rises by 12.3% in December 2021

    Headline inflation rises by 12.3% in December 2021

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 12.3 per cent on year-on-year basis in December 2021 as compared to an increase of 11.5 per cent in the previous month and 8.0 per cent in December 2020.

    Pakistan Bureau of Statistics (PBS) on Saturday said that on month-on-month basis, it decreased by -0.02 per cent in December 2021 as compared to increase of 3.0 per cent in the previous month and a decrease of -0.7 per cent in December 2020.

    READ MORE: Headline inflation surges by 11.5% in November 2021

    CPI inflation Urban, increased by 12.7 per cent on year-on-year basis in December 2021 as compared to an increase of 12.0 per cent in the previous month and 7.0 per cent in December 2020. On month-on-month basis, it increased by 0.3 per cent in December 2021 as compared to increase of 2.9 per cent in the previous month and a decrease of -0.3 per cent in December 2020.

    READ MORE: Headline inflation increases by 9.2% in October

    CPI inflation Rural, increased by 11.6 per cent on year-on-year basis in December 2021 as compared to an increase of 10.9 per cent in the previous month and 9.5 per cent in December 2020. On month-on-month basis, it decreased by -0.5 per cent in December 2021 as compared to increase of 3.1 per cent in the previous month and a decrease of -1.2 per cent in December 2020.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 20.9 per cent in December 2021 as compared to an increase of 18.1 per cent a month earlier and an increase of 9.1 per cent in December 2020. On MoM basis, it decreased by -0.4 per cent in December 2021 as compared to increase of 3.6 per cent a month earlier and a decrease of -2.7 per cent in December 2020.

    READ MORE: Comparing inflation target not correct: State Bank

    Wholesale Price Index (WPI) inflation on YoY basis increased by 26.2 per cent in December 2021 as compared to an increase of 27.0 per cent a month earlier and an increase of 5.7 per cent in December 2020. WPI inflation on MoM basis decreased by -0.2 per cent in December 2021 as compared to an increase of 3.8 per cent a month earlier and an increase of 0.3 per cent in corresponding month i.e. December 2020.

  • Prices of all POL products increased to wish New Year

    Prices of all POL products increased to wish New Year

    ISLAMABAD: The government on Friday increased prices of all petroleum products to wish the nation the New Year 2022.

    The prices have been increased across the board around Rs4 per liter on all the products.

    READ MORE: Petrol price reduces to Rs140.82 per liter

    The prices have been implemented at 00:00 hours of January 01, 2022 for next fortnight.

    According to a notification issued by the finance division the new price of petrol has been increased by Rs4 to Rs144.82 per liter from Rs140.82.

    The rate of high speed diesel (HSD) has been increased by Rs4 to Rs141.62 per liter from Rs137.62.

    READ MORE: SBP revises manual on remittances for petroleum sector

    Similarly, the price of kerosene has been increased by Rs3.95 to Rs113.53 per liter from Rs109.53.

    Likewise, the price of light diesel oil has been increased by Rs4.15 to Rs111.06 per liter from Rs107.06.

    The notification stated that in the fortnightly review of petroleum products prices, the prime minister had rejected the proposal of Oil and Gas Regulatory Authority (OGRA) for increase in prices of petroleum products and advised to increase only Rs4 per liter to meet the petroleum levy target agreed with the International Monetary Fund (IMF).

    “Sales tax on petrol and diesel has been adjusted downwards as compared to December 16, 2021 to keep the prices lower,” the notification stated.

    READ MORE: FBR notifies increase in sales tax on petrol, HSD