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IR offices to work till midnight on March 31

ISLAMABAD: The offices of Inland Revenue (IR) will observe extended working hours on last two days of the current month and facilitate tax payment till midnight on March 31, 2022.

According to a notification issued by the Federal Board of Revenue (FBR) on Monday, the offices of Inland Revenue including Large Tax Offices (LTOs), Medium Tax Offices (MTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) will remain open and observe extended working hours till 8:00 PM on Wednesday March 30, 2022 and till 12:00 midnight on Thursday March 31, 2022 to facilitate the taxpayers in payment of duty and taxes.

READ MORE: Banks to observe extended hours for tax collection

The FBR directed Chief Commissioners Inland Revenue to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (SBP) to ensure transfer of tax collection by these branches to the respective branches of SBP on the same date to account for the same towards the collection for the month of March 2022.

READ MORE: Tax collection from property purchase climbs up 24%

Earlier on March 24, 2022 the SBP issued instructions in this regard.

The SBP in a statement said that in order to facilitate the collection of government receipts/duties / taxes, it has been decided that the field offices of SBP Banking Services Corporation (SBP-BSC) and authorized branches of National Bank of Pakistan (NBP) will observe extended banking hours till 8:00 P.M. and 10:00 P.M. on 30th and 31 March, 2022, respectively.

READ MORE: FBR registration made mandatory for housing projects

Accordingly, NIFT has been advised to arrange a special clearing at 8:00 P.M. on 31st March, 2022 (Thursday) for same day clearing of payment instruments.

All banks are advised to keep their concerned branches open on 31″ March, 2022 (Thursday) till such time that is necessary to facilitate the special clearing for Government transactions by the NIFT.

READ MORE: Advance tax on purchase of immovable property

March 28, 2022
Dollar hits PKR 182.15 in midday trading

KARACHI: The US dollar touched a new peak against Pakistan Rupee (PKR) at Rs182.15 at midday trading in interbank foreign exchange market.

The rupee was ended Rs181.78 against the dollar at closing on March 25, 2022. It was previous record high of the dollar against the rupee.

READ MORE: Dollar continues historic journey; tops at PKR 181.78

Currency experts said that the rupee was under immense pressure due to external payments, political unrest and Russia-Ukraine war.

READ MORE: Dollar maintains record high against PKR at Rs181.73

The massive outflow of foreign exchange for repayment of external debt kept pressure on the exchange rate.

READ MORE: Dollar maintains record high against PKR at Rs181.73

Pakistan’s foreign exchange reserves fell by $2.28 billion to $21.44 billion by March 18, 2022 as compared with $23.72 billion as of February 4, 2022. The foreign exchange reserves of the country hit record high at $27.23 billion on August 27, 2021.

READ MORE: Rupee’s losing streak continues as dollar tops Rs181.73

The rupee was under pressure due to political uncertainty, external payment demand and volatile international oil prices. A no-confidence motion moved against the prime minister by the opposition parties had resulted in negative sentiments in the market.

The dollar demand was also rising due to import of commodities related to the holy month of Ramzan. The local forex market is also uncertain due to volatile oil prices in the international markets. The oil prices have seen continuous fluctuation since the Russia-Ukraine war began on February 24, 2022.

Dollar continues historic journey; tops at PKR 181.78

March 28, 2022
Dollar continues historic journey; tops at PKR 181.78

KARACHI: The US dollar continued its historic journey against the Pakistan Rupee (PKR) on Friday to reach new high of Rs181.78 at closing of interbank foreign exchange market.

The rupee witnessed five paisas decline to the dollar from previous day’s closing of Rs181.73, which was previous historic low of the local unit at interbank closing of March 22, 2022.

READ MORE: Dollar maintains record high against PKR at Rs181.73

The dollar took breath yesterday to maintain the historic low as exchange ended unchanged at Rs181.73. Prior to this, the local currency fell continuously against the greenback for seven consecutive trading sessions till March 22, 2022.

The massive outflow of foreign exchange for repayment of external debt kept pressure on the exchange rate.

READ MORE: Rupee’s losing streak continues as dollar tops Rs181.73

Pakistan’s foreign exchange reserves fell by $2.28 billion to $21.44 billion by March 18, 2022 as compared with $23.72 billion as of February 4, 2022. The foreign exchange reserves of the country hit record high at $27.23 billion on August 27, 2021.

READ MORE: Rupee collapses to dollar at record low Rs181.25

The rupee was under pressure due to political uncertainty, external payment demand and volatile international oil prices. A no-confidence motion moved against the prime minister by the opposition parties had resulted in negative sentiments in the market.

The dollar demand was also rising due to import of commodities related to the holy month of Ramzan. The local forex market is also uncertain due to volatile oil prices in the international markets. The oil prices have seen continuous fluctuation since the Russia-Ukraine war began on February 24, 2022.

READ MORE: Dollar continues to make historic high; hits Rs180.57

March 25, 2022
Pakistan’s foreign exchange reserves fall to $21.44 billion

KARACHI: Pakistan’s foreign exchange reserves have declined by $843 million to $21.44 billion by week ended March 18, 2022, State Bank of Pakistan (SBP) said on Thursday.

The foreign exchange reserves of the country were $22.283 billion a week ago i.e. March 11, 2022.

READ MORE: Pakistan’s forex reserves dip to $22.283 billion

The foreign exchange reserves are continuously falling since February 04, 2022. The country’s foreign exchange reserves have declined by around $2.28 billion during past six weeks till March 18, 2022. The foreign exchange reserves of the country have reached record high at $27.228 billion by week ended August 27, 2021.

READ MORE: SBP’s reserves slip by $250 million on foreign payments

The official foreign exchange reserves of the SBP fell by $869 million to $14.963 billion by March 18, 2022 as compared with $15.832 billion a week ago. The SBP attributed the decline in foreign exchange reserves to external payments.

READ MORE: Pakistan’s forex reserves decline to $22.875 billion

The foreign exchange reserves held by commercial banks witnessed a nominal increase of $24 million to $6.477 billion by week ended March 18, 2022 as compared with $6.453 billion a week ago.

READ MORE: Pakistan’s foreign exchange reserves dip to $23.226 bn

Miftah Ismail, Former Finance Minister, in a tweet said a $2.3 billion decrease in SBP foreign exchange reserves in six weeks. SBP reserves have come down from $17.3 billion on February 4 to $14.96 today.

March 24, 2022
IMF to agree on Pakistan’s industrial promotion package

ISLAMABAD: Pakistan and International Monetary Fund (IMF) likely to reach an understanding on the industry promotion package i.e. amnesty scheme in the ongoing 7th review, an official statement said on Thursday.
(more…)

March 24, 2022
Dollar maintains record high against PKR at Rs181.73

KARACHI: The US dollar maintained the record high level of Rs181.73 on Thursday as Pakistan Rupee (PKR) ended unchanged in interbank foreign exchange market.

The greenback hit the record high level of Rs181.73 on March 22, 2022. The rupee ended at this level despite import pressure owing to the market opened after a day of holiday.

READ MORE: Rupee’s losing streak continues as dollar tops Rs181.73

Currency experts said that high import payments and widening of current account deficit kept the pressure on rupee value. Besides, the political uncertainty also added the pressure on exchange rate.

Furthermore, the dollar demand was also rising due to import of commodities related to the holy month of Ramzan. The local forex market is also uncertain due to volatile oil prices in the international markets.

READ MORE: Rupee collapses to dollar at record low Rs181.25

Further, the external payments, foreign exchange reserves declined and it pushed the rupee to fall sharply.

The foreign exchange reserves of the country fell by $386 million to $22.283 billion by the week ended March 11, 2022 as against $22.669 billion a week ago. The official reserves of the State Bank fell by $381 million to $15.831 billion by the week ended March 11, 2022 as compared with $16.212 billion a week ago.

READ MORE: Dollar continues to make historic high; hits Rs180.57

The country spent $11.69 billion for the import of petroleum products during the first seven months (July – February) 2021/2022 as compared with $5.64 billion in the corresponding period of the last fiscal year, showing an increase of 107 per cent.

READ MORE: Dollar climbs new peak PKR 180.07 at interbank closing

March 24, 2022
Pakistan needs to introduce laws to tax crypto income

KARACHI: Pakistan needs to introduce laws to tax income from gains on cryptocurrency trading, Karachi Tax Bar Association (KTBA) said in its annual report on Tuesday.

“ … trading of real-estate in Pakistan is grossly under-taxed while inheritance, gift and crypto tax is yet to be explored over here,” the tax bar said in its annual report for the year 2021.

READ MORE: KTBA elects Rehan Jafri as President

According to the general secretary’s statement the year 2021 had been exceptional where service of Artificial Intelligence in the tax matters was given legal sanctity under section 175A and 175B of Income Tax Ordinance, 2001 and NADRA is mandated to compute ‘indicative income’ to identify tax evasions.

Similar provision has also been introduced in Sales Tax Act, 1990 under Section 56A and 56AB.

READ MORE: KTBA identifies anomaly in SRB’s appellate system

On global score OECD was able to bring 136 countries to a minimum tax rate of 15 per cent w.e.f. year 2023 with use of digital payment for Multinational Entities (MNEs) to offset the abuse of transfer pricing/profit shifting.

”Pakistan needs to timely synchronize its banking and tax infrastructure to cater these challenges,” according to the report.

READ MORE: KTBA highlights anomalies in single sales tax return

It said that year 2021 had been an incredible year. By working with Federal Board of Revenue (FBR), Sindh Revenue Board (SRB) and other tax/regulatory authorities across the country, KTBA was able to extend its legacy of working towards the strengthening of rule of law in tax and corporate regimes.

READ MORE: KTBA passes resolution against FTO Asif Jah

“Be it overstepping by the field formation in the domain of Section 11 of Sales Tax Act, 1990; abuse to amend the assessment under section 122 of Income Tax Ordinance, 2001, transgression of constitutional provisions by SRB or uninspiring assertions from Federal Tax Ombudsman (FTO), KTBA’s intensified actions had helped in easing the situations for this fraternity.”

March 23, 2022
Tax slabs reduction may be considered: FBR chairman

KARACHI: Dr. Muhammad Ashfaq Ahmed, chairman, Federal Board of Revenue (FBR) on Tuesday said reduction in income tax slabs may be considered.

Addressing the business community at Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that existing income tax slabs were implemented after due consideration.

Earlier, the business community pointed out high number of tax slabs in the Income Tax Ordinance, 2001.

READ MORE: Withholding tax should be on income: FBR Chairman

Commenting on requirement of Computerized National Identity Card (CNIC) on transactions, he said this condition was introduced three years ago. The FBR has gathered bulk of information due to this condition. Further, many cases of using fake CNICs for making transactions were also reported, he added.

The FBR chairman said that retailers had positively responded to integration of Point of Sales (POS) in Karachi. “Many issues will be resolved with improvement in supply chain,” he added.

The business community raised the issues of audit notices. Dr. Ashfaq said that action would be taken if audit notices were not responded. “The audit notices should be responded with documentary evidence,” he said.

READ MORE: UAE favorite hiding for Pakistan assets: Dr. Ashfaq

About the tax laws, he said that foreign companies investment in Pakistan are unaware about our domestic laws, he said and assured that the FBR would facilitate both local and foreign investors to understand tax laws.

Earlier, Anjum Nisar, Chairman, Businessmen Panel (BMP) said that delay in tax refunds create liquidity issues for industries. He said if taxpayers delays in compliance then he is subject to penalty and surcharges. Similarly, this should be apply to tax officials, he added.

Irfan Iqbal Sheikh, President FPCCI, put forward the concerns and complaints of the business, industry and trade community of Pakistan to the Federal Board of Revenue during the detailed visit of its Chairman, Dr. Ashfaq Ahmed; along with the top brass of FBR.

READ MORE: FBR explains cash discount under sales tax laws

FPCCI President said that excessive and unsubstantiated tax notices; maladministration and corrupt elements; requirement of buyers’ CNIC copy; huge backlog of refund cases; double taxation; misuse of erstwhile FATA & PATA exemptions; higher rates of corporate, sales and withholding taxes; mandatory POS integration with FBR; multiplicity of income tax slabs and SRO culture are the major impediments in reforming the taxation system and broadening of the tax base.

Irfan Iqbal Sheikh added that 29 percent corporate tax and 17 percent sales tax are too high for economic growth, industrialization and employment generation; and, rates of these taxes should be gradually and progressively brought down. He elaborated that no country of the world has ever progressed in the absence of industrialization; while commending the recently announced industrial growth package of the federal government.

READ MORE: FBR amends fresh property valuations for Islamabad

Engr. M.A. Jabbar, VP FPCCI, emphasized that we have to do away with the notice manufacturing practices of the taxation machinery as that prohibits the new taxpayers to register themselves into the system to avoid unnecessary regulatory interferences.

Dr. Ashfaq Ahmed, Chairman FBR, expressed his willingness to have policy deliberations over FPCCI’s demand of reducing audit period to three years from the current six years. He also apprised the session that FBR has performed exceedingly well despite the debilitating economic conditions arising out of COVID-19 pandemic and have collected record taxes. He also expressed his optimism that FBR can soon achieve a Tax-to-GDP ratio of 12 per cent.

March 22, 2022
Rupee’s losing streak continues as dollar tops Rs181.73

KARACHI: The losing streak of Pakistan Rupee (PKR) against dollar for the seventh consecutive session on Tuesday as the foreign currency hit another high of Rs181.73 in the interbank foreign exchange market.

In today’s trading the rupee fell 48 paisas against the dollar from previous day’s closing of Rs181.25 in the interbank foreign exchange market.

READ MORE: Rupee collapses to dollar at record low Rs181.25

The local currency depreciated by Rs3.22 or 1.80 per cent during the past seven trading sessions.

Currency experts said political uncertainty, current account deficit and trade deficit put pressure on the rupee value.

They said that a no-confidence motion moved against the prime minister by the opposition parties had resulted in negative sentiments in the market.

READ MORE: Dollar continues to make historic high; hits Rs180.57

The dollar demand was also rising due to import of commodities related to the holy month of Ramzan.

The local forex market is also uncertain due to volatile oil prices in the international markets.

Further, the external payments, foreign exchange reserves declined and it pushed the rupee to fall sharply.

READ MORE: Dollar climbs new peak PKR 180.07 at interbank closing

The foreign exchange reserves of the country fell by $386 million to $22.283 billion by the week ended March 11, 2022 as against $22.669 billion a week ago. The official reserves of the State Bank fell by $381 million to $15.831 billion by the week ended March 11, 2022 as compared with $16.212 billion a week ago.

READ MORE: Dollar advances to fresh high at Rs179.44

The country spent $11.69 billion for the import of petroleum products during the first seven months (July – February) 2021/2022 as compared with $5.64 billion in the corresponding period of the last fiscal year, showing an increase of 107 per cent.

March 22, 2022
SBP launches challenge fund for SMEs

KARACHI: The State Bank of Pakistan (SBP) on Monday March 21, 2022, launched challenge fund for Small and Medium Enterprises (SMEs) to support innovative solutions for SME banking in the country.

The central bank through a circular issued procedure for the challenge fund for SMEs (CFS).

This fund in form of grant will facilitate banks in developing innovative technological solutions to cater the banking needs of SME sector.

READ MORE: Meezan Bank starts Islamic financing scheme for SMEs

This will also enable to increase the access and usage of digital financial services by SME sector.

The scope of CFS will focus, however, it will not be limited to the following areas:

i. Developing SME banking solutions

ii. Developing digital payment solutions for SMEs

iii. Developing E-Commerce / market place

iv. Digitizing loans application and credit management

READ MORE: Computation of income tax on profit and gains for SMEs

The SBP said that commercial banks (conventional & Islamic) are eligible to apply for grant under CFS. Banks can also apply in partnership with Non-banking financial Institutions (NBFIs), Fintechs, Electronic Money Institutions (EMI) and software houses. However, lead responsibility will rest with the applicant bank.

The SBP said that grant size will be determined according to the financing requirements of the proposal under consideration. However, each grantee will contribute 15 per cent of the total cost. Depending upon the quality and innovations of proposal, the grant size can vary, however one bank will get only one grant. The duration of the projects to be implemented through CFS grant should not exceed 8 months.

SBP invites interest of banks through Expression of interest (EOI) placed at Annexure A for availing grant under CFS to improve their SME financing portfolio. Banks proposals will be evaluated as per technical criteria developed by SBP.

Banks are encouraged to apply as per EOI on prescribed format placed at Annexure-B to SBP latest by April 18, 2022.

March 22, 2022