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  • FBR collects Rs11 bn income tax on prize bond winning

    FBR collects Rs11 bn income tax on prize bond winning

    ISLAMABAD: The Federal Board of Revenue (FBR) has collected around Rs11 billion as income tax on the amount paid from winning of prize bonds during fiscal year 2020/2021, according to official data released on Monday.

    The collection of income tax grew by only one per cent during the fiscal year 2020/2021 as compared with Rs10.89 billion in the preceding fiscal year.

    READ MORE: SBP directs banks to accept bearer prize bonds

    On the other hand, the income tax collection on winning from prizes, raffles, or lottery has increased by 97 per cent to Rs518 million during the fiscal year 2020/2021 as compared with Rs263.7 million in the preceding fiscal year.

    The FBR collects income tax under Section 156 of the Income Tax Ordinance, 2001.

    According to the FBR, every person paying prize on a prize bond, or winnings from a raffle, lottery, prize on winning a quiz, the prize offered by companies for promotion of the sale, or cross-word puzzle shall deduct tax from the gross amount paid at the rate specified in Division VI of Part III of the First Schedule.

    READ MORE: History of Prize Bonds in Pakistan

    Where a prize, referred to in sub-section (1), is not in cash, the person while giving the prize shall collect tax on the fair market value of the prize.

    The tax-deductible under sub-section (1) or collected under sub-section (2) shall be a final tax on the income from prizes or winnings referred to in the said sub-sections.

    READ MORE: Income tax on prize bonds, lottery winning

    The tax rate for Tax Year 2022 is:

    (1) The rate of tax to be deducted under section 156 on a prize on prize bond or cross-word puzzle shall be 15 per cent of the gross amount paid.

    (2) The rate of tax to be deducted under section 156 on winnings from a raffle, lottery, prize on winning a quiz, a prize offered by a company for promotion of the sale, shall be 20 per cent of the gross amount paid.

    The total income tax collection under Section 156 of the Income Tax Ordinance, 2001 during the fiscal year 2020-2021 was Rs11.42 billion as compared with Rs11.16 billion in the preceding fiscal year.

    READ MORE: 4th draw of Rs25,000 premium prize bonds announced

  • Customs duty collection from imported vehicles surges by 95%

    Customs duty collection from imported vehicles surges by 95%

    Official data released on Monday indicates a remarkable upswing in the collection of customs duty from imported vehicles during the fiscal year 2020/2021, reflecting a staggering 95 percent growth, reaching Rs111 billion. This surge is in stark contrast to the Rs56.85 billion recorded in the preceding year.

    (more…)
  • FBR launches sales tax return filing through single portal

    FBR launches sales tax return filing through single portal

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday said the sales tax return for the month of December 2021 will be filed through single portal.

    The FBR in a memorandum said that sales tax return for the tax period of December 2021, which is scheduled to be filed in January 2022, will be filed through the Single Sales Tax Portal.

    READ MORE: Power of the Board and Commissioner to call for records

    In order to allow the registered persons to familiarize themselves with the new system, the uploading of sales tax invoice of December 2021 has been enabled, the FBR said. The old sales tax return will not be available for filing the return for December 2021, it added.

    Therefore, all sales tax registered persons and their representatives have been advised to familiarize themselves with the single sales tax portal.

    READ MORE: Inland Revenue officers promoted to BS-20

    The single portal for sales tax returns has been launched to facilitate taxpayers, promote ease of doing business and reduce compliance cost.

    The FBR said that through this portal, sales tax registered persons shall be able to file a single sales tax return instead of having to file separate returns to the FBR and each of the different provincial sales tax authorities.

    READ MORE: PM to launch single sales tax portal this month

    By filing sales tax on the portal, it will save time and effort besides simplifying the return filing process, the FBR added.

    The portal will minimize data entry and address the issue of data and calculation errors. It will also automatically apportion input tax adjustment as well as payments across the sales tax authorities, eliminating the need for reconciliation and payment transfers.

    The single portal will encourage harmonization of tax procedures, definitions and principals between the federal and provincial governments, which will promote national unity, the FBR said.

    READ MORE: Single sales tax portal to start functioning by month-end

  • Dollar hits new record high at PKR 178.17

    Dollar hits new record high at PKR 178.17

    KARACHI: The US dollar recorded a new record high against Pak Rupee (PKR) at Rs178.17 on Monday. The rupee ended by four paisas against the dollar from last Friday’s closing of Rs178.13 in the interbank foreign exchange market.

    The dollar previously recorded the highest level at Rs178.15 on December 22, 2021.

    Currency experts said that the dollar demand was high due to opening of market after two weekly holidays. They said that year-end demand for corporate payment also put pressure on rupee value.

    They said that the widening of trade deficit and current account deficit are major threats to rupee stability.

    Pakistan’s current account deficit has ballooned 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.

    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.

    Rupee eases by one paisa against dollar
  • Digital tax monitoring yields Rs32.43bn from sugar sector

    Digital tax monitoring yields Rs32.43bn from sugar sector

    ISLAMABAD: The digital monitoring initiated by the Federal Board of Revenue (FBR) has resulted in a collection of Rs32.43 billion from the sugar sector during the first half of the current fiscal year.

    (more…)
  • Bank Alfalah tops in house financing under MPMG

    Bank Alfalah tops in house financing under MPMG

    KARACHI: Bank Alfalah has secured the top position in house financing under the government’s flagship Mera Pakistan Mera Ghar (MPMG).

    According to a statement issued by the State Bank of Pakistan (SBP), Bank Alfalah secured the top position followed by Meezan Bank Limited and Standard Chartered Bank Limited.

    A ceremony was held on Friday at Prime Minister House, Islamabad to mark Rs 100 billion in home finance approvals of the Governments flagship Mera Pakistan Mera Ghar (MPMG) program under the theme “ Khawab ke tabeer ab tez ter”.

    READ MORE: Financing for Mera Pakistan Mera Ghar gains momentum

    The Prime Minister lauded the leading role of the State Bank of Pakistan and the efforts of the banking industry in the implementation of MPMG. He also witnessed ceremonial keys being handed over to six beneficiaries of MPMG who were from different regions and represented a variety of segments of Pakistan.

    Over 20 other beneficiaries of MPMG also participated in the ceremony. The Prime Minister expressed his pleasure to see that low and middle-income citizens who were completely ignored earlier are now being served by the banks in obtaining home finance. While distributing awards among top-performing banks with respect to approvals and disbursements, he urged banks to accelerate their efforts to help realize the dream of every Pakistani to own their own homes.

    The ceremony was attended by Ali Amin Gandhapur-Federal Minister for Kashmir Affairs & Gilgit Baltistan, Dr. Shahbaz Gill-Special Assistant to Prime Minister on Political Communication, Senator Shaukuat Tareen-Adviser to Prime Minister on Finance & Revenue, Governor State Bank of Pakistan, Chairman NAPHDA, Dr. Amjad Ali-Minister for Housing Khyber Pakhtunkhwa and Presidents/CEOs of banks.

    READ MORE: SBP launches webpage for promoting house financing

    Dr. Reza Baqir, Governor State Bank of Pakistan, shared the progress of MPMG since inception, highlighting that all stakeholders are taking steps in the right direction to translate the Prime Minister’s vision of increasing homeownership into reality. Till December 20, 2021, banks have received applications of Rs. 263 billion while approvals of Rs. 109 billion have already been made. Over the last nine months, the approved amount increased by Rs. 98 billion. Disbursement has also increased from almost zero in March 2021 to Rs. 32 billion by December 20, 2021. While shedding light on the theme of the event, he mentioned that during the last month, banks on average approved Rs. 4 billion and disbursed Rs. 1.6 billion on weekly basis. He underscored the need to maintain and accelerate this momentum. There are six banks that disbursed over Rs. 2 billion each and seven banks have disbursed over Rs. 1 billion each in the span of 9 months under MPMG.

    The Governor said that growth in MPMG is attributed to various measures taken by the Government, SBP, and NAPHDA to provide a conducive environment for the banking industry to enter the untapped market of housing and construction finance. He mentioned the simplification of complex procedures, a significant reduction in documentation requirement, development of a model to assess informal income, effective redressal mechanism as examples of this support. Communication initiatives like Mera Pakistan Mera Ghar Meri Kahani –a series of testimonials of MPMG beneficiaries have also been instrumental in encouraging others to apply.

    READ MORE: PM launches house financing scheme for NRPs

    Earlier, in a meeting of the National Coordination Committee on Housing, Construction, and Development (NCCHCD), Governor SBP apprised the Prime Minister on developments in housing and construction finance. He recalled that in July 2020, in line with the Government’s vision of boosting economic activity, SBP mandated banks to increase their housing and construction finance to at least 5 percent of their domestic private sector advances by December 31, 2021. Five banks have already achieved their December 2021 targets. The best performing banks in this regard were Albaraka Bank followed by Meezan Bank and Dubai Islamic Bank. He highlighted that as of December 17, 2021, banks have lent Rs. 321 billion which is Rs. 173 billion more than their financing as of June 30, 2020, reflecting a growth of 117 percent since June 2020. He praised Bank Al Habib, National Bank, and Bank Alfalah for a significant increase in their housing and construction finance portfolio since June 2020 till date.

    In conclusion, Governor Baqir expressed SBPs confidence that the banking industry will continue to pace up its performance rapidly to meet the objectives of Mera Pakistan Mera Ghar and to reach targets mandated for Housing and Construction Finance.

    READ MORE: Meezan Bank becomes pioneer in Sharia financing for low cost housing

    The MPMG event also witnessed speeches from Senator Shaukat Tareen, Adviser to Prime Minister on Finance & Revenue, and Lt Gen Anwar Ali Hyder, Chairman NAPHDA. The Finance Adviser reiterated the Government commitment to MPMG and assured banks to provide all needed support. Chairman NAPHA requested banks to demonstrate commitment in providing housing finance to individuals in NAPHDAs LDA City and Peri Urban projects.

  • 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.