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  • FBR vows to curb money laundering in real estate

    FBR vows to curb money laundering in real estate

    ISLAMABAD: The Federal Board of Revenue (FBR) has vowed to continue its efforts to stop money laundering through real estate and precious metals and stones, including gold and jewellery.

    FBR Chairman Dr. Muhammad Ashfaq Ahmed that FBR will continue implementing the AML/CFT regulations in order to curb the menace of money laundering through real estate and precious metals and stones, including gold and jewellery.

    The chairman issued the statement on the major achievement of completing actions on Designated Non-Financial Businesses and Professions (DNFBS) in the FATF action plan I just one reporting cycle and one year ahead of the deadline in September 2022.

    The Chairman FBR Dr. Muhammad Ashfaq Ahmed congratulated DG DNFBPs, Mr. Mohammad Iqbal, and his team for the tireless efforts to complete the actions on DNFBPs in a short span of three months and one year ahead of the deadlines.

    The FATF plenary in its public statement has noted that Pakistan has now satisfied the requirements of most of its action items under the 2021 action plan, ahead of deadlines and in its first reporting cycle.

    In June 2021, the FATF plenary had approved a seven actions new action plan for Pakistan, focusing on combating money laundering. This action plan contained two actions specific to DNFBPs, in particular, the real estate agents and Dealers in Precious Metals and Stones (DMPS). FBR was already designated as AML/CFT regulatory authority for real estate agents, DPMS and accountants other than those registered with ICAP and ICMAP under the Anti-Money Laundering Act, 2010, through amendments made in September 2020.

    Since the designation of FBR as the AML/CFT regulatory authority, FBR issued AML/CFT regulations for its regulated entities and also embarked upon an extensive outreach to educate and facilitate the DNFBPs on implementation of the new AML/CFT regime. A dedicated portal was made available on FBR website, which contains comprehensive guidance documents and other information for the DNFBPs. FBR also launched a customized mobile App for the registration by DNFBPs, screening the lists of proscribed /designated persons and generating Suspicious Transaction Reports (SRTs). A detailed supervisory plan was chalked out for offsite and onsite supervision of the DNFBPs.

    Since June 2021, FBR has carried out onsite inspections of a large number of DNFBPs and imposed a wide range of penalties on the delinquent entities. The real estate associations were also taken on board for the implementation of the AML/CFT obligations.

    FBR warns of action for delaying inquiry reports
  • SBP’s foreign exchange reserves fall by $1.64 billion

    SBP’s foreign exchange reserves fall by $1.64 billion

    KARACHI: The official foreign exchange reserves of the State Bank of Pakistan (SBP) sharply fell by 1.642 billion by the week ended October 15, 2021.

    The foreign exchange reserves of the central bank were $25.969 billion by the week ended October 8, 2021, the SBP said on Thursday.

    The central bank attributed the decline in foreign exchange reserves to external debt repayment, which included repayment of $1 billion against Pakistan International Sukuk.

    The total liquid foreign exchange reserves fell $1.642 billion by the week ended October 15, 2021, when compared with the previous week. The country’s foreign exchange reserves fell to $24.327 billion by the week ended October 15, 2021, as compared with $25.969 billion a week ago.

    The foreign exchange reserves held by commercial banks registered an increase of $4 million to $6.835 billion when compared with $6.831 billion a week ago.

    Foreign exchange reserves fall to $26 billion
  • FATF retains Pakistan in grey list; admits progress

    FATF retains Pakistan in grey list; admits progress

    The Financial Action Task Force (FATF) on Thursday kept Pakistan in the grey list or increased monitoring list with an acknowledgment of completing almost all the action plans.

    Pakistan has been on the grey list for deficiencies in its counter-terror financing and anti-money laundering regimes since June 2018.

    Announcing the decision, FATF President Dr Marcus Pleyer said that Pakistan had to complete two concurrent action plans with a total of 34 items. “It has now addressed or largely addressed 30 of the items,” he said.

    “Its most recent action plan from June this year, which largely focused on money laundering deficiencies, was issued after the FATF’s regional partner — the Asia Pacific Group — identified a number of serious issues.

    “Overall, Pakistan is making good progress on this new action plan. Four out of the seven items are now addressed or largely addressed.”

    He said that this included showing that financial supervisors are conducting on-site and off-site checking on non-financial sector businesses and enacting legislative amendments to improve international cooperation.

    Commenting on the action plan devised in 2018 which focused on terror financing, the FATF president said that Pakistan was still assessed to have largely addressed 26 out of 27 items.

    “Pakistan has taken a number of important steps but needs to further demonstrate that investigations and prosecutions are being pursued against the senior leadership of UN designated terror groups,” he said.

    All these changes are about helping authorities stop corruption, preventing terrorism and organized criminals from benefitting from their crimes, he said, thanking the government for their “continued strong commitment” to the process.

    Responding to a question about whether Pakistan would be blacklisted for its failure to act against those on the UN terrorism list, Dr Pleyer said that the country had completed 30 items out of 34 on two action plans.

    “This shows the clear commitment of the Pakistani government so there is no discussion on blacklisting Pakistan and the FATF urges the country to address the remaining four items,” he said, adding that the government was cooperating with the financial watchdog.

    Pakistan will remain on enhanced follow-up, and will continue to report back to the APG on progress to strengthen its implementation of AML/CFT measures. Pakistan’s fourth progress report is due 1 February 2022.

    Pakistan urges FATF to take action against Indian plot
  • Minimum tax rates for tax year 2022

    Minimum tax rates for tax year 2022

    The minimum tax rates for the tax year 2022 are under the First Schedule of the 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.

    Application of minimum tax under Section 113

    Following are the minimum tax rates under Section 113 of Income Tax Ordinance, 2001:

    01. The tax rate shall be 0.75 per cent on the following:

    (a) Oil marketing companies, Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited (for the cases where annual turnover exceeds rupees one billion.)

    (b) Pakistani International Airlines Corporation; and

    (c) Poultry industry including poultry breeding, broiler production, egg production and poultry feed production;

    02. The tax rate shall be 0.5 per cent on the following:

    (a) Oil refineries

    (b) Motorcycle dealers registered under the Sales Tax Act, 1990

    03. The tax rate shall be 0.25 per cent on the following:

    (a) Distributors of pharmaceutical products, fast moving consumer goods and cigarettes;

    (b) Petroleum agents and distributors who are registered under the Sales Tax Act, 1990;

    (c) Rice mills and dealers;

    (d) Tier-1 retailers of fast moving consumer goods who are integrated with Board or its computerized system for real time reporting of sales and receipts;

    (e) Person’s turnover from supplies through e-commerce including from running an online marketplace as defined in clause (38B) of section 2.

    (f) Persons engaged in the sale and purchase of used vehicles; and

    (g) Flour mills

    04. The tax rate shall be 1.25 per cent in all other cases

    (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 builders, developers for tax year 2022
  • FBR warns of action for delaying inquiry reports

    FBR warns of action for delaying inquiry reports

    The Federal Board of Revenue (FBR) has issued a stern warning to inquiry officers, cautioning them of potential disciplinary action for prolonged delays in submitting inquiry reports.

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  • Dollar advances to new high at Rs173.96

    Dollar advances to new high at Rs173.96

    KARACHI: The Pak Rupee (PKR) fell by 49 paisas on Thursday as the dollar advanced to make a new high at Rs173.96.

    The rupee ended at Rs173.96 to the dollar from the previous day’s closing of Rs173.47 in interbank foreign exchange market.

    Currency experts said that volatile situations push the dollar to hit Rs174 during intraday trade.

    The currency dealers said that the massive widening of the current account deficit had also had a negative impact on rupee/dollar parity.

    The current account deficit ballooned to $3.4 billion during July – September 2021 as compared with a surplus of $865 million in the corresponding period of the last fiscal year, according to the SBP.

    The import bill showed a 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.

    Dollar touches new peak at Rs173.47