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  • Tax rates on electricity consumption during TY 2022

    Tax rates on electricity consumption during TY 2022

    The rates of income tax on electricity for tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates of income tax on electricity consumption shall be applicable during tax year 2022 under Section 235:

    Electricity Consumption

    (1) The rate of collection of tax from commercial and industrial consumers from gross amount of bills shall be as set out in the following Table, namely:—

    TABLE S. NoGross amount of BillTax
    1upto Rs. 500Rs. 0
    2exceeds Rs. 500 but does not exceed Rs. 20,00010% of the amount
    3exceeds Rs.20,000Rs. 1950 plus 12% of the amount exceeding Rs.20,000 for commercial consumers Rs. 1950 plus 5% of the amount exceeding Rs.20,000 for industrial consumers

    (2) The rate of tax to be collected on domestic electricity consumption shall be—

    (i) zero percent the amount of monthly bill is less than Rs.25,000; and

    (ii) 7.5% if the amount of monthly bill is Rs. 25,000 or more;

    The rates of tax for domestic users under Section 235 have been amended and additional tax has been imposed on domestic electricity consumers. For further details please visit following link:

    Domestic electricity consumers to pay 35% additional AIT

    (Disclaimer: The text of 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.)

    Tax rates on motor vehicles during tax year 2022
  • Saudi Arabia places $3bn with Pakistan’s central bank

    Saudi Arabia places $3bn with Pakistan’s central bank

    ISLAMABAD: 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.

    The SPA reported that the deposit was in addition, to an oil deferred payment facility of $1.2 billion dollars for petroleum products, during the year.

    The SPA said that the gesture reflected the Saudi Kingdom’s continued position in supporting the economy of Pakistan.

    The announcement would help ease pressure on Pakistan’s foreign exchange reserves, due to the recent sharp hike in global commodity prices.

    In a late-night development Information Minister Ch. Fawad Hussain shared the major development on his Twitter handle, a day after the return of Prime Minister Imran Khan from a three-day visit to the Kingdom to attend the Middle East Green Initiative of the Saudi Crown Prince.

    “Breaking news Saudi Arabia announcement support Pakistan with $3 billion as deposit in Pakistan central bank and also financing refined petroleum product with 1. 2 billion us dollars during the year.”

    Finance Minister Shaukat Tarin in a tweet early Wednesday said: “Yesterday evening the Finance Minister of Saudi Arabia informed me of the generous gesture of the Kingdom of Saudi Arabia to place $3 billion with SBP and a $1.2 billion deferred oil facility to help the balance of payment of Pakistan.”

    “We thank the Crown Prince & the KSA for this kind gesture.”

    Minister of Energy Hammad Azhar, who accompanied the Prime Minister on his visit to Saudi Arabia said the Saudi Development Fund has generously announced for Pakistan an oil deferred payments facility of $1.2 billion/annum and a $3 billion deposit with SBP.

    “This will help ease pressures on our trade & forex accounts as a result of global commodities price surge,” he said in a message on Twitter.

  • PM, Army Chief discuss DG ISI selection

    PM, Army Chief discuss DG ISI selection

    ISLAMABAD: Chief of Army Staff General Qamar Javed Bajwa called on Prime Minister Imran Khan on Tuesday.

    The meeting was part of the ongoing consultation process between the Prime Minister and Chief of Army Staff about the timing of change of command in ISI and selection of the new DG ISI.

    During this process a list of officers was received from ministry of Defence. Prime Minister interviewed all the nominees.

    A final round of consultation was held between the Prime Minister and Chief of Army Staff today.

    After this detailed consultative process, name of Lt. Gen. Nadeem Anjum was approved as new DG ISI.

    The designate DG ISI shall assume charge on 20th November, 2021.

    President, PM congratulate Pakistan cricket team
  • President Alvi orders State Life to pay death insurance

    President Alvi orders State Life to pay death insurance

    ISLAMABAD: President of Pakistan Dr. Arif Alvi has order the State Life Insurance Corporation to pay death insurance claims to widows of two different insurance policy holders,

    The president upheld the orders of the Wafaqi Mohtasib to pay the death insurance claims to the widows of policyholders in two separate cases and rejected the representations of SLICP in this regard.

    According to the details, Mst. Nagina Fatima’s late husband had purchased non-medical life insurance policy for Rs 1 million and paid annual premium amounting to Rs 54,890 on December 31, 2018.

    After his death in February 2019, the widow, being the nominee of the deceased policyholder, approached the SLICP for the payment of death insurance claim.

    The SLICP repudiated her insurance claim without issuing her any notice, thereafter, the widow approached the office of the Wafaqi Mohtasib for the redressal of her grievance.

    Similarly, the husband of Mst. Rehana Kosar had purchased a policy for Rs 410,000 and after paying annual premium in July 2019 he died. Mst. Kosar’s claim was also rejected without issuing any notice to her after which she approached the Wafaqi Mohtasib to seek justice.

    Subsequently, Wafaqi Mohtasib, in both the cases, passed the orders directing SLICP to redress the grievances of the complainants by paying them death insurance claims, taking disciplinary actions against the delinquent officers/officials under the relevant laws and reporting compliance or intimate the reasons for not doing so within 30 days in terms of the Article 11(2) of P.O. 1 of 1983. SLICP, thereafter, filed appeals to the President assailing the orders of the Wafaqi Mohtasib. While rejecting the representation of SLICP, the President noted that under the Article 32 of the Establishment of the Office of Wafaqi Mohtasib Order 1983 read with Section 14 of the Federal Ombudsmen Institutional Reforms Act 2013, any person aggrieved by the order of the Mohtasib may file a representation within 30 days before the Honourable President.

    He stated that in both cases, the orders of the Mohtasib were forwarded to the agency on 26.05.2021 whereas both the instant representations of SLICP were field on 07.07.2021.

    The President observed that the extant law didn’t empower the condonation of delay to entertain a representation which is time barred, adding that it is liable to be rejected out rightly as incompetent and time barred. He remarked that the agency did not challenge the declarations made by the deceased policyholders about their good state of health and treated the insurance policies as “good risk” and a valid contract since the date of issuance of policies till their deaths for all intents and purposes.

    He ordered to estop the agency to assail the policy after the death of policyholders as the agency repudiated the claim without issuing any notices and without providing the complainants the opportunity of being heard. The President in his decision wrote that the agency did not fulfil the requirements of natural justice which is one of the most sacred principles and its violation is always considered enough to vitiate even the most solemn proceeding.

    “Therefore, the representation is rejected at it is time barred and the Agency must consider the matter further, redress the grievance of the complainants by paying them death insurance claims, take disciplinary actions against delinquent officers under relevant laws and report compliance within 30 days”, he ordered.

    Dr. Alvi opens property exhibition for UAE based NRPs
  • Tax rates on motor vehicles during tax year 2022

    Tax rates on motor vehicles during tax year 2022

    The rates of income tax on motor vehicles for tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates of income tax on motor vehicles shall be applicable during tax year 2022:

    Rates of collection of tax under section 234,—

    (1) In case of goods transport vehicles, tax of two rupees and fifty paisa per kilogram of the laden weight shall be charged.

    (1A) In the case of goods transport vehicles with laden weight of 8120 kilograms or more, advance tax after a period of ten years from the date of first registration of vehicle in Pakistan shall be collected at the rate of twelve hundred rupees per annum;

    (2) In the case of passenger transport vehicles plying for hire with registered seating capacity of—

    S.No.CapacityRs per seat per annum
    (i)Four or more persons but less than ten persons.50
    (ii)Ten or more persons but less than twenty persons.100
    (iii)Twenty persons or more.300

    (3) In case of other private motor vehicles shall be as set out in the following Table, namely:-

    S. No.Engine capacityTax
    (1)(2)(3)
    1.upto 1000ccRs. 800
    2.1001cc to 1199ccRs. 1,500
    3.1200cc to 1299ccRs. 1,750
    4.1300cc to 1499ccRs. 2,500
    5.1500cc to 1599ccRs. 3,750
    6.1600cc to 1999ccRs. 4,500
    7.2000cc & aboveRs. 10,000

    (4) where the motor vehicle tax is collected in lump sum,

    S. No.Engine capacityTax
    (1)(2)(3)
    1.upto 1000ccRs. 10,000
    2.1001cc to 1199ccRs. 18,000
    3.1200cc to 1299ccRs. 20,000
    4.1300cc to 1499ccRs. 30,000
    5.1500cc to 1599ccRs. 45,000
    6.1600cc to 1999ccRs. 60,000
    7.2000cc & aboveRs. 120,000

    (Disclaimer: The text of 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.)

    Tax rates on petroleum products during tax year 2022
  • Philip Morris declares 39% decline in quarterly profit

    Philip Morris declares 39% decline in quarterly profit

    KARACHI: Philip Morris (Pakistan) Limited on Tuesday announced a 39 per cent decline in its profit after tax for the quarter ended September 30, 2021.

    According to financial results shared with the Pakistan Stock Exchange (PSX), the company declared a profit of Rs351 million for the quarter ended September 30, 2021 as compared with the profit of Rs575.56 million in the same quarter of the last year.

    The board of directors of Philip Morris (Pakistan) Limited at its meeting held on October 26, 2021 approved the quarterly financial statements of the company for the quarter ended September 30, 2021.

    The company declared a net profit of Rs2.07 billion for the nine months period ended September 30, 2021 as compared with Rs1.83 billion in the same period of the last year.

    During the nine months ended September 30, 2021, the company’s net turnover stood at Rs12,789 million reflecting an increase of 7.5 per cent versus the same period last year.

    During the period, the Company’s contribution to the National Exchequer, in the form of excise duty, sales tax and other government levies, stood at Rs20,449 million (higher by 17.4 per cent compared to the same period last year) reflecting 60.9 per cent of nine months gross turnover.

    Unaltered excise rate on cigarettes in June 2021 during Federal Budget 2021/2022 is supporting Government Revenues and added to FBRs record revenue collection.

    During the first Quarter ended September 30, 2021 of the ongoing fiscal year 2021/22, the Company’s contribution to the National Exchequer (July’21-Sep’21) in the form of excise duty, sales tax and other Government levies, stood at Rs6,014 million (higher by 22.1 per cent versus prior period).

    No change in excise rates also led to consumer price stability of the tax paying cigarette brands, however, the price gap between tax paid and non-tax paid brands remains very significant and non-tax paid brands continue to sell lower than the minimum price for the purposes of levy and collection of federal excise duty of i.e. Rs63 per pack.

    We are of the view that Pakistan’s economy which started to gain momentum in the first half of the calendar year, is now facing serious challenges.

    The continuing rise of commodity and fuel prices internationally accompanied by a devaluation of the PKR v/s US$ has pushed up the inflation rate.

    The country’s economic challenges, therefore, need greater focus by the Government as it has already eroded the purchasing power of the common man.

    The management is concerned that the current volatile domestic and international economic environment might have serious consequences for the Company’s operations especially, as it may divert the cigarette consumer to cheaper illicit brands to offset the decline in their income.

    Philip Morris declares 37% growth in half year net profit
  • PKR continues fathomless journey; dollar hits Rs175.27

    PKR continues fathomless journey; dollar hits Rs175.27

    KARACHI: The Pak Rupee (PKR) on Tuesday continued its fathomless journey against the dollar as the foreign currency reached to a new high of Rs175.27.

    The rupee ended with a decline of 84 paisas to close at Rs175.27 to the dollar from previous day’s closing of Rs174.43 in the interbank foreign exchange market.

    Currency dealers said that the external payment kept the pressure on dollar demand during the day.

    They said that the dollar demand was remained high owing to widening of trade deficit. Further, the reduction in official foreign exchange reserves of the State Bank of Pakistan (SBP) has also put pressure on dollar demand.

    The official foreign exchange reserves of the State Bank recorded a decline of $1.646 billion to $17.492 billion by the week ended October 15, 2021 as compared with $19.138 billion by week ended October 08, 2021.

    The import bill has registered 66.11 per cent growth to $18.74 billion during the first quarter of the current fiscal year as compared with $11.28 billion in the corresponding quarter of the last fiscal year.

    The rupee is facing a continuous fall since start of the current fiscal year. The local currency recorded a depreciation of Rs17.73 or 11.25 per cent against the dollar when compared the value of Rs157.54 to dollar on June 30, 2021 with Rs175.27 as on October 26, 2021.

    PKR plunges to historic low at Rs174.43 to dollar
  • Indus Motors posts 195% growth in net profit to Rs5.42bn

    Indus Motors posts 195% growth in net profit to Rs5.42bn

    KARACHI: Indus Motor Company Limited has reported a remarkable 195% increase in net profit, reaching Rs5.42 billion for the quarter ended September 30, 2021, compared to Rs1.84 billion during the same period last year.

    (more…)
  • Tax rates on petroleum products during tax year 2022

    Tax rates on petroleum products during tax year 2022

    The Federal Board of Revenue (FBR) has unveiled the income tax rates applicable to petroleum products for the tax year 2022 under the Second Schedule of the Income Tax Ordinance, 2001.

    (more…)
  • Tax rates on brokerage and commission in tax year 2022

    Tax rates on brokerage and commission in tax year 2022

    The Federal Board of Revenue (FBR) has released the income tax rates applicable to brokerage and commission for the tax year 2022, as outlined in the Second Schedule of the Income Tax Ordinance, 2001.

    (more…)