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ISLAMABAD: Federal Board of Revenue (FBR) will give cash rewards to law enforcement agencies (LEAs) for recovery and confiscation of smuggled or non-duty paid goods under Customs laws.
According to the draft amendment, the FBR proposed to include in reward rules the “officers and officials of other law enforcement agencies who assist Customs officers and officials or are actually instrumental in the seizure of smuggled goods and vehicles as confirmed by the respective collectorate of customs, for their meritorious conduct in such cases only after realization of part or whole of the duty and taxes involved in such cases.”
At present, the eligibility for reward stated that cash reward shall be sanctioned under the rules to the following categories of persons in cases involving evasion of duty and other taxes, and confiscation of goods, namely:
(a) officers and officials of Pakistan Customs Service for their contribution in such cases; and
(b) informer providing credible information leading to such confiscation or detection, as the case may be.
As per SRO 1386(I)/2012 dated November 26, 2021, the determination of reward has been explained as the amount of reward, in cases involving evasion of duty and other taxes, and confiscation of goods shall be determined in the following manner:
01. Where the amount of customs duty and other taxes realized is Rs500,000 or less, the amount of reward shall be 20 per cent of the customs duty and other taxes.
02. Where the amount of customs duty and other taxes realized is more than Rs500,000 but not more than Rs1,000,000, the amount of reward shall be Rs100,000 plus 10 per cent of the customs duty and other taxes in excess of Rs500,000.
03. Where the amount of customs duty and other taxes realized is over Rs1,000,000, the amount of reward shall be Rs150,000 plus 5 per cent of the customs duty and other taxes in excess of Rs1,000,000.
KARACHI: K-Electric Limited (KE), the power generating and supply company, on Thursday announced massive 161 per cent growth in net profit for quarter ended September 30, 2021, mainly surge in revenue in the shape of tariff adjustment.
The profit after tax of the KE grew by 161 per cent to Rs2.9 billion for the quarter ended September 30, 2021 as compared with Rs1.11 billion in the same quarter of the last year.
The company announced Rs0.11 as earnings per share (EPS) for the quarter under review as compared with Rs0.04.
The revenue of KE exhibited sharp growth of 33 per cent to Rs114.14 billion for the quarter ended September 30, 2021 as compared with Rs85.55 billion in the same quarter of the last year.
The sales of energy grew by 27 per cent to Rs86.92 billion for the quarter under review as compared with Rs68.40 billion in the same quarter of the last year.
In the head of tariff adjustment, the revenue of the company recorded 58.72 per cent increase to Rs27.22 billion for the quarter ended September 30, 2021 as compared with Rs17.15 billion in the same quarter of the last year.
Cost of sale grew by 36 per cent to Rs97.49 billion as against Rs71.68 billion.
Operating expenses of KE recorded a significant increase to Rs1.81 billion for the quarter ended September 30, 2021 as compared with Rs338 million in the same quarter of the last year.
KARACHI: Pakistan State Oil (PSO) on Thursday announced a massive jump in its quarterly net profit by over 120 per cent for the period ended September 30, 2021.
According to consolidated results, the profit of the company surged to Rs11.53 billion for the quarter ended September 30, 2021, as compared with Rs5.22 billion in the same quarter of the last year.
PSO announced Rs24.93 as earning per share for the quarter ended September 30, 2021 as compared with Rs11.07 in the same quarter of the last year.
The company in its board of management meeting held on October 28, 2021 approved the results and recommended no dividend for the period.
The company posted a gross profit of Rs 22.1 billion with gross margins set at 4.80 per cent in the first quarter of 2021/2022 compared to gross profit of Rs 11.5 billion (4.09 per cent gross margins) in the prior year.
Analysts view noteworthy changes in ex-refinery prices that resulted in inventory gains of around Rs 7 billion in 1QFY22 compared to inventory gains of Rs 1.5 billion in same period last year.
Other operating income decreased by 87 per cent QoQ to Rs 1,786 million in 1QFY22. We believe, absence of Late Payment Surcharge (LPS) resulted in decline in other income.
Meanwhile, finance costs nosedived by 92 per cent QoQ and 27 per cent YoY to Rs 626mn which is owing to lower reliance on short term borrowings and lower interest rates, we view.
The company recorded effective taxation at 32.6 per cent in 1QFY22 compared to 33.0 per cent in 1QFY21.
KARACHI: Pakistan International Airlines, the national flag carrier, on Wednesday declared a loss of Rs42.72 billion during the first nine months (January – September) of 2021.
The losses of the national flag carrier were over Rs40 billion in the same period of the last year.
The board of directors of PIA in its meeting on October 27, 2021, approved the financial results for the period ended September 30, 2021.
The board has not approved any cash dividend, bonus shares, or right shares for the period.
The revenue of the airline significantly declined to Rs49.36 billion during January – September 2021 as compared with Rs74.36 billion in the same period of the last year.
On account of aircraft fuel, the airline has spent Rs13.44 billion during the period under review as compared with Rs18.08 billion in the corresponding period of the last year.
Administrative expenses of PIA reduced to Rs3.97 billion during the first nine months of the current year as compared with Rs4.53 billion in the same period of the last year.
The exchange losses of the company were at Rs5.18 billion for the period under review as compared with Rs7.57 billion.
The rupee made an all-time low of Rs175.27 on October 26, 2021 due to external payment pressure.
Currency experts said that the foreign currency market had witnessed positive sentiments throughout the day.
Saudi Arabia day before yesterday announced additional support of $3 billion to Pakistan for building its foreign exchange reserves. The additional financial support is besides a $1.2 billion dollars deferred oil facility to Pakistan to help its balance of payment issues, an official statement said.
KARACHI: Housing and construction loan disbursement by banks has reached Rs305 billion by the end of September 2021, which was Rs166 billion at the end of September last year, showing an increase of Rs139 billion and a year-on-year growth of 84 per cent, the State Bank of Pakistan (SBP) said on Wednesday.
The banks have also received applications worth Rs200 billion for low-cost housing financing under Mera Pakistan Mera Ghar (MPMG) scheme.
The SBP said that as per the latest numbers of October 18, 2021, banks have received applications of more than Rs200 billion. The banks have approved financing of Rs78 billion out of which Rs18 billion have already been disbursed.
SBP Governor Dr. Reza Baqir appreciated the progress made by the banking industry in supporting low-cost housing finance for first time homeowners under the Mera Pakistan Mera Ghar.
At the same time, the Governor stressed the need to accelerate the pace of approvals by banks to match the requests for financing to ensure that people are not discouraged by the processing time. He expressed the hope that with the combined efforts of all stakeholders, the dream of Pakistanis to have their own homes can become a reality.
While appreciating the efforts to date, Governor Baqir also asked stakeholders to increase the outreach of the Government’s Markup Subsidy Scheme for Housing Finance commonly known as Mera Pakistan MeraGhar (MPMG) to the wider public. He said that when the journey of MPMG started last year, low-cost housing finance was almost non-existent as commercial banks rarely ventured in this area fearing its inherent risks.
However, the strong commitment of the government especially NAPHDA, SBP, banks, and other stakeholders to promote housing and construction activities in the country is beginning to result in a considerable increase in finance for housing and construction.
To augment this effort the SBP provided an enabling regulatory environment to promote housing & construction finance.
In July 2020, State Bank of Pakistan advised commercial banks to increase their lending for housing and construction sectors to at least 5 percent of their private domestic sector advances by December 2021.
To assist in this, the State Bank advised quarterly targets to each bank after individual consultation, leading to the concerted effort. The focus on this segment increased and for the quarter ending September 30, 2021, banks have achieved 94 percent of their assigned targets on a consolidated basis. During July-September 2021, banks increased their credit to the housing and construction sector by Rs48 billion from Rs257 billion as of June 30, 2021.
An increase in credit to the housing and construction sector reflects that banks have realigned their internal policy dimension/ strategic focus towards the development of housing and construction. The banks have, in recent months, revamped their systems and procedures, upgraded and streamlined technological platforms, and motivated their banking staff through incentives and training.
The banks have also established a joint call center to address queries of the general public regarding MPMG which was recently inaugurated by the Governor SBP. The general public can reach the call center at 0-33-77-786-786. This call center will help resolve complaints and assist common persons who would like to borrow under MPMG but face difficulties in completing the requirements of banks. Earlier, State Bank launched a user-friendly online complaint resolution mechanism in January 2021. The complaint resolution mechanism comprises an IT-based portal supported by a comprehensive network of State Bank and commercial bank staff to take care of problems faced by applicants and resolves complaints within a predefined timeline with proper escalation mechanism.
Some of the other steps taken by SBP in collaboration with NAPHDA, other government agencies, banks and stakeholders include a simplified loan application, standard facility offer letter, amendment in the prudential framework, development of standard risk assessment criteria for builders/developers, development of income proxy model and streamlined financing documents.
Following are the rates of income tax on telephone users that shall be applicable during tax year 2022 under Section 236:
The rate of tax shall be 10 per cent of the exceeding amount of bill in case of a telephone subscriber (other than mobile phone subscriber) where the amount of monthly bill exceeds Rs1000.
The tax rate shall be 10 per cent for tax year 2022 and 8 per cent onwards of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form in the case of subscriber of internet, mobile telephone and pre-paid internet or telephone card.
236. Telephone and internet users.- (1) Advance tax at the rates specified in Division V Part IV of the First Schedule shall be collected on the amount of –
(a) telephone bill of a subscriber;
(b) prepaid cards for telephones;
(c) sale of units through any electronic medium or whatever form; and
“(d) internet bill of a subscriber; and
(e) prepaid cards for internet.”
(2) The person preparing the telephone or internet bill shall charge advance tax under sub-section (1) in the manner telephone or internet charges are charged.
(3) The person issuing or selling prepaid cards for telephones or internet shall collect advance tax under sub-section (1) from the purchasers at the time of issuance or sale of cards.
(3A) The person issuing or selling units through any electronic medium or whatever form shall collect advance tax under sub-section (1) from the purchaser at the time of issuance of sale of units.
(4) Advance tax under this section shall not be collected from Government, a foreign diplomat, a diplomatic mission in Pakistan, or a person who produces a certificate from the Commissioner that his income during the tax year is exempt from tax.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, on Wednesday directed all the provinces to finalize the indicative price of sugarcane at the earliest.
He issued the directives while presiding over the National Price Monitoring Committee (NPMC).
Chief Secretary Punjab apprised the NPMC that the crushing of sugarcane will begin by 15th November in Punjab. The adviser on Finance and Revenue directed the Chief Secretary, Sindh to ensure the crushing of sugarcane to start as soon as possible to ensure a stable price of sugar across the country. The adviser further directed all Provincial governments to finalize the indicative price of sugarcane at the earliest.
Federal Minister for National Food Security & Research Syed Fakhar Imam, Minister of State on Information Farrukh Habib, Adviser to the Prime Minister on Commerce, Textile and Investment Abdul Razak Dawood, Federal Secretaries, MD Utility Stores, Provincial Chief Secretaries, Chief Statistician PBS, Chairperson CCP, Member FBR and other senior officers participated in the meeting.
The Secretary of Finance briefed the NPMC about the weekly SPI situation which has been increased by 1.38 per cent during the week under review.
While reviewing the price trend of essential commodities, the Secretary of Finance apprised that the rise in global food commodities and petroleum prices has affected the prices of essential food items worldwide.
Prices of 07 essential commodities registered decline whereas prices of 15 items remained stable during the last week, he added.
The Secretary of Finance further updated the NPMC that the prices of the wheat flour bags remained consistent at Rs. 1100 per 20 kg due to the proactive measures of the Punjab Government and ICT administration.
The Adviser Finance commended the efforts of the representatives of the Punjab Government and Islamabad administration and expressed deep concern over the significant price differential in the wheat flour prices in Sindh Province as compared to other Provinces.
He directed the Provincial Chief Secretary of Sindh to expedite the process of daily releases of wheat at the price determined by the Government to ease out the pressure on prices.
The Adviser reiterated the firm commitment of the Government to ensure a smooth supply of wheat flour across the country at the government-specified prices.
While reviewing the price trend of basic commodities, the Adviser to Prime Minister on Finance and Revenue Shaukat Tarin stated that the Government is taking a range of administrative, policy and relief measures to absorb the upward pressure on prices of basic food commodities globally.
The Adviser on Finance and Revenue directed the Pakistan Bureau of Statistics to draw a province-wise comparison of weekly SPI. The decision has been taken to analyze the price differential in SPI among Provinces to differentiate the individual Province’s efforts.
The Chief Secretary Baluchistan also highlighted the need for expanding USC outlets and establishing cold storages facilities in the Province. Adviser to PM on Finance and Revenue directed the concerned Ministries to coordinate with the Baluchistan Government to expedite the matter.
Minister of State on Information highlighted the need to increase the footfall of Sasta Bazars, to make sure the benefit to reach the maximum number of people, and the Adviser to the PM on Finance & Revenue directed the Provincial governments to devise the strategies for the same.
In his concluding remarks, the Adviser to the Prime Minister on Finance and Revenue stated that the Government is taking all possible measures to ensure smooth supply of essential commodities throughout the country.
KARACHI: The Pak Rupee (PKR) rebounded with a gain of Rs2.49 or 1.44 per cent against the dollar on Wednesday after an assistance package was announced for Pakistan.
The rupee made all-time low of Rs175.27 a day earlier due to external payment pressure.
Currency experts said that the foreign currency market had witnessed positive sentiments throughout the day.
Saudi Arabia yesterday announced additional support of $3 billion to Pakistan for building its foreign exchange reserves. The additional financial support is besides a $1.2 billion dollars deferred oil facility to Pakistan to help its balance of payment issues, an official statement said.
KARACHI: Prime Minister Imran Khan on Wednesday thanked Saudi Crown Prince Mohammad Bin Salman for supporting Pakistan with $3 billion as deposit in Pakistan’s central bank and financing refined petroleum product with $1.2 billion.
The prime minister said in a tweet. “KSA has always been there for Pak in our difficult times including now when world confronts rising commodity prices.”
On the other hand the dollar retreated in early trade in interbank foreign exchange market.
The dollar declined by 92 paisas in early trade. The dollar was being traded at Rs174.35 from previous day’s closing of Rs175.27 in interbank foreign exchange market.
Saudi Arabia has announced an additional support of $3 billion to Pakistan for building its foreign exchange reserves.
The additional financial support is besides a $1.2 billion dollars deferred oil facility to Pakistan to help its balance of payment issues, an official statement said.
According to the Saudi Press Agency – SPA, the Saudi Fund for Development in a “generous gesture” announced a deposit of $3 billion dollars with the State Bank of Pakistan (SBP) to help the government support its foreign currency reserves and counter the impact of the Corona pandemic.
