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ISLAMABAD: Federal Tax Ombudsman (FTO) has directed the tax authorities to expedite setting up Customs laboratories at collectorates.
In its recommendations, the FTO office directed the Federal Board of Revenue (FBR) to expedite the task of setting up of customs laboratories in the remaining customs collectorates and upgradation of existing customs labs as per international best practices.
The FBR has also been advised to assign administrative control to Member (Customs) to save the lab officials from local pressures.
The FTO made this recommendations in an own motion investigation initiative to investigate systemic maladministration of the Customs Administration for failing to establish customs laboratories in the Customs Collectorates as per World Customs Organization (WCO) guidelines, besides failure to upgrade the existing customs lab functioning at MCC Karachi, Lahore and Faisalabad.
Absence of quality laboratory facilities not only compromise collection of legitimate due government revenue but also put at risk import/export controls, environmental protection, control of dangerous goods.
The FBR responded to the FTO notice that the existing Customs lab at Karachi had been upgraded and more than 95 per cent of items, such as textile fabrics, yarn, chemicals, dyes, petroleum hydrocarbons, pharmaceutical materials and metals etc. are conducted there. “Few samples were, however, forwarded to other labs, like HEJ Research Institute of Chemistry and PCSIR…”
Crux of the investigation is that necessary actions have been initiated by the FBR, after initiation of the investigation, through constituting a committee on June 16, 2021, to examine the proposals for setting up modern Customs labs in the remaining Customs Collectorates as well as upgrading the existing labs as per the best international practices.
ISLAMABAD: The federal government has increased the minimum support price for wheat to Rs1,950 per 40 kilograms from Rs1,800/40kg.
A statement issued on Saturday said that to achieve self-sufficiency in wheat, the government has decided to increase the minimum support price for wheat to Rs 1,950/40 kg compared to Rs. 1,800/40 kg last year.
The government believes that increase in support price will incentivise farmers to grow sufficient wheat to meet the national production target of 28.90 million metric tons.
It is also hoped that availability of irrigation water and weather conditions will be conducive during rabi season to achieve this target.
Due to much higher international prices of DAP fertilizer and shipping cost, the domestic price (Rs. 7,300/bag) has also increased significantly. But thankfully, the price of urea (Rs. 1,850/bag) is stable and significantly lower than the international price (Rs. 5,400/bag) because government provide Rs. 126 billion annual subsidy for natural gas.
The government is working closely with the fertilizer companies to ensure adequate availability of both key fertilizers during this rabi season.
Moreover, the government has provided over Rs. 16 billion for fertilizer, seed, pesticide, agricultural loan markup subsidies. These timely initiatives have helped generate record production of many commodities.
“Our hardworking farmers have produced record crops this year. Pakistan has achieved the highest ever production of wheat (27.5 million mt), rice (8.4 million mt), maize (8.5 million mt), mung beans (0.275 million mt), onion (2.3 million mt), and potato (5.7 million mt). And sugarcane achieved the second-highest production (81 million mt).”
In 2021-22 … Sugarcane production is estimated at 87.67 million tons; 8 per cent higher than that of last year. Rice production is estimated at 8.84 million tons which is 5 per cent higher than that of last year. Maize production is estimated at 9.0 million tons which is 8.5 per cent higher than that of last year. Cotton production as of November 01, 2021 is 6.2 million bales compared to 3.4 million bales (82 per cent higher) at the same date last year.
The President ordered the bank to pay the amount to complainant in fraud case, a statement said on Saturday.
According to the details, President Dr. Arif Alvi has rejected the representation, filed by the Soneri Bank Ltd (SBL) against the order of the Banking Mohtasib, and has made the bank responsible to make good the loss of the money to the complainant without further delay.
While upholding the orders of the Banking Mohtasib to pay an amount of Rs 800,000 amount to the complainant, the President stated in his decision that the bank could not escape the liability in a case of this kind, when the commission of fraud with the account holder by its management was established and admitted.
He said that the ample opportunity had been provided to the Bank before the learned Banking Mohtasib to defend and controvert the claim of the complainant and even before the forum, however, the bank had failed to discharge the burden and statutory liability cast upon it under the law.
Muhammad Danish Naseem (the complainant) maintains an account with the Soneri Bank Ltd Sargodha Road Branch, Sheikhupura.
Danish opened his account on 22-10-2018 in the bank branch and requested the Manager to deposit PKR. 2,000,000/- (two million rupees) cash in the said account. Whereas, the Manager gave him deposit slips of Rs. 500,000/-, Rs. 900,000/- and Rs. 600,000/- respectively.
Despite insistence of the account holder for issuing one deposit slip of amount i.e. Rs. 2 million, the bank manger issued three deposit slips saying that it was to overcome the restrictions of the SBP.
Later, the account holder wanted to draw money from his account but there was no sufficient balance in his account. He lodged a complaint with the bank’s authorities but his grievance was not addressed.
Although, the complainant possessed valid deposit slips admittedly issued by the Ex-Manager bearing his genuine signature and Branch Stamp affixed thereon which validated customer claim to the extent that the Bank had not accounted for amounts of PKR. 2,000,000/- in his account.
Furthermore, the Bank had admitted during the proceedings before the Banking Mohtasib that the receipts in possession of the customers bore signatures of the Bank’s ex-Manager.
Despite all these proofs, the complainant was compelled to run from pillar to post and no relief was provided to him. Feeling aggrieved, Danish Naseem approached the Banking Mohtasib for his grievance.
The Banking Mohtasib, under Section 82 D of the BCO read with Section 9 of the Federal Ombudsmen Institutional Reforms Act, 2013 (No. XIV of 2013), advised the Bank to forthwith make good the loss by crediting the account of the complainant with a sum of Rs800,000/- in pursuance of the findings.
While rejecting representation of the Bank, the President has noted that it is a case of wrong doing and maladministration by the Bank officials and it is, therefore, responsible to make good the loss of the complainant.
He further stated that the ambit and extent of jurisdiction of Banking Mohtasib was spelt out under Section 82A (3)(a)(e), Section 82B(4)(5) and Section 82F of the Banking Companies Ordinance, 1962.
The cumulative reading and perusal of these provisions of law undoubtedly leads to the conclusion that the Banking Mohtasib is to inquire into the complainants about banking malpractices, maladministration, wrong doings, the fraudulent transactions, the corrupt and malafide practices by the Bank officials and pass appropriate orders on conclusion of inquiry.
These powers of the Banking Mohtasib when considered in context with Section 18 and 24 of the Federal Ombudsmen Institutional Reforms Act, 2013 further show that in matters falling within the jurisdiction of the Banking Mohtasib, stated the decision.
KARACHI: The apex trade body of the country has alleged the State Bank of Pakistan (SBP) for misguiding the ministry of commerce on Pak-Iran trade.
Mian Nasser Hyatt Maggo, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement on Saturday said that the SBP had misdirected the commerce ministry by advising against banking channels with Iran for sanctions-related concerns; and, not offering and advocating its due and required facilitative role for the barter trade. “Any State Bank should be an enabler of trade and growth; not a block and disruptor like SBP,” the FPCCI said.
The FPCCI chief hailed the Ministry of Commerce’s efforts to kick start barter trade with Iran on a mass scale; however, he has expressed his concerns and apprehensions pertaining to the conduct of the SBP for creating obstacles and showing inaction for the same.
Maggo maintained that when Europe, India and China can do barter trade with Iran, why Pakistan can not do that; while, Pakistan is at the greater advantage on the back of long border and geographical contiguity as compared to all other countries and regions.
Nasir Khan, VP FPCCI from Balochistan, emphasized that it is in the national interest of Pakistan to have barter trade with Iran and have marketplaces in the border areas of the two brotherly countries.
He added that he considers the conduct of the Governor SBP against the national interest and detrimental to the economic growth and prosperity of Pakistan.
Nasir Khan added that Pakistani exporters can export large quantities of rice, meat, pharmaceuticals and textiles to Iran and that can translate into upwards of equivalent of five billion dollars annually; which, in turn, will create millions of jobs.
Nasir Khan further said that the current Governor SBP is an imported one and is not taking care of Pakistani interests into account. We need a die-hard Pakistani at the helm of the affairs, he added.
ATTOCK: Prime Minister Imran Khan on Friday directed the law minister to pursue the cases against sugar mills on urgent basis for the benefit of general public and for addressing price hike of the commodity.
To address the ongoing sugar crisis, Prime Minister Imran Khan on Friday directed the law minister to urgently get vacated various stay orders obtained by the sugar mill owners from courts against the government.
Addressing a public gathering after the foundation-laying of a 200-bed mother and child hospital, the prime minister said closure of sugarcane crushing by three sugar mills in Sindh and the subsequent hoarding was the reason behind the current spike in sugar prices.
The sugar price soared as wholesale rate touched Rs150 per kilogram in most parts of the country and retail rate up to Rs160kg.
Also, the other stay order was against Federal Board of Revenue (FBR) in line with its action on tax evasion and the ‘off-the-books’ activity of sugar mills.
On overall inflation, he said Pakistan was bearing the impact of global price hike of commodities, mainly due to shortage of supplies in the wake of pandemic.
He said the sharp increase in global petroleum prices from $45 to $85 dollar greatly affected Pakistan as the country relied on imports of several items, including petrol, palm oil, and pulses.
Despite such a situation, he said, Pakistan had the lowest rate of petroleum at Rs 146 per litre among importing countries compared with India at Rs 250 and Bangladesh at Rs 200 per litre.
Imran Khan hoped that as the world businesses open up after decline in pandemic following the coming winters, things would improve.
To reduce the financial impact on poor, he said the government had recently provided food subsidies to 130 million people across the country through Ehsaas programme.
He mentioned that other socio-welfare initiatives such as Kamyab Pakistan would provide interest-free loans to two million households for house building, start-ups, and skills training. Also, the Kamyab Jawan is providing loans to youth across the country, he added.
The prime minister said establishment of five mother and child hospitals in two years would ensure provision of health facilities to women on health issues related to gynecology and obstetrics.
He said it was shameful that due to the apathy of previous governments, a rise in deaths of women during pregnancy was recorded in the wake of non-availability of medical facilities.
He said by March, all households of Punjab would get health insurance of Rs 0.7 to one million for their medical treatment.
He termed the health card a proper system where the private sector would also be encouraged to establish hospitals in rural areas so as to expand the network of healthcare facilities.
Imran Khan said the priority of his government in its tenure was to uplift the people and provinces that lagged behind in development.
On completion of five years, he said, his biggest success would be to bring a positive change in the lives of common man.
He regretted that Pakistan in the past suffered the rule of two political families in 30 years that incurred a huge loss to national exchequer.
The prime minister mentioned that under his government, the country for the first time was witnessing an era of long-term planning besides the boom in industrial growth, exports and historic foreign remittances.
Chief Minister Punjab Usman Buzdar said the mother and child hospital in Attock would provide quality healthcare facilities to two million residents, particularly women, of the Attock district and in the suburbs.
He said the Punjab government would complete the 200-bed hospital equipped with modern facilities in two years at a total cost of Rs 5.3 billion. The federal government has already released Rs 2.66 billion to Punjab for the project.
He said establishment of 21 different universities in the province was also under consideration.
Punjab Health Minister Dr Yasmin Rashid said the mother and child hospitals would help the women get timely medical advice and treatment.
She said after 50 years, the second phase of Nishtar Hospital would be constructed in Multan to meet the medical needs of the growing population.
The FBR said that the Finance Act, 2019 added sub-section 6 to the Section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailer who did not integrate its retail outlet in the manner prescribed under sub-section 9A of Section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for the period would be reduced by 15 per cent. The figure 15 per cent has been raised to 60 per cent through Finance Act, 2021.
The FBR further said that in order to operationalize the important provision of the law, a system-based approach has been adopted whereby all Tier-1 retailers, who are liable to integrate but have not yet integrated, with effect from July 2021 (Sales Tax Returns filed in August, 2021) are to be dealt with as per the procedure laid down in STGO No. 1 of 2022 issued on August 3, 2021.
Through the latest STGO No. 04 of 2022, a list of 608 identified Tier-1 retailers has been placed on the FBR’s portal allowing them to integrate with the FBR’s system by November 10, 2021 and the procedure of exclusion from this list of 608 identified Tier-1 retailers shall apply as laid down in Para 2 STGO 1 of 2022 dated August 3, 2021.
Upon filing of sales tax return for the month of October 2021 all notified Tiler-1 retailers having yet integrated, the input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.
ISLAMABAD: The government on Thursday night announced an increase of Rs8.03 to Rs145.82 per liter in the price of petrol effective from November 05, 2021.
The price has been increased from previous high of Rs137.79.
Similarly, the price of high speed diesel has been increased by Rs8.14 to Rs142.62 from Rs134.48.
The rate of kerosene oil has been increased by 6.27 per liter to Rs116.53 from Rs110.26. Likewise, the price of light diesel oil has been increased by Rs5.72 per liter to Rs114.07 from Rs108.35.
A notification issued by the Finance Division stated that on November 01, 2021, the prime minister had not agreed with the proposals worked out by the Oil and Gas Regulatory Authority (OGRA) and the finance division directed to maintain the prices as notified on October 16, 2021.
It is pertinent to mention that maintaining the October 16, 2021 petroleum prices had some underlying concerns for cash flow issues due to short recovery of the cost, according to the statement.
It is important to note that in the previous petroleum prices, already a significant relief was provided to the consumers. The government is cognizant of its responsibility to provide maximum relief to the consumers.
“This has dented the petroleum levy budget of Rs152.5 billion during July – September, 2021 as compared to Rs20 billion realized only,” it said.
Foregoing in view, prices of petroleum products have been increased partially as compared to the prices being worked out by the OGRA. If the government had accepted OGRA’s recommendations, the new prices would have been much higher.
Infact, the government has absorbed the bulk of the pressure after making adjustment after making adjustment in the sales tax and petroleum levy. The collection of petroleum levy is far short of its fixed target for the first quarter of the fiscal year 2021/2022, it added.
KARACHI: The exchange companies are required to deploy biometric verification system (BVS) for transactions of foreign currencies from November 6, 2021.
“All exchange companies are advised to deploy BVS as provided by NADRA at their outlets for biometric verification after November 05, 2021,” the State Bank of Pakistan (SBP) said in a communication on Thursday.
The SBP said that exchange companies were required to implement the BVS latest by October 22, 2021. Towards this, State Bank had requested National Database Registration Authority (NADRA) to facilitate the exchange companies in the implementation of BVS.
“However, given the technical challenges currently faced by the exchange companies (EC Sector), NADRA proposed to offer an android based BVS for exchange companies.”
The State Bank on request of the Exchange Companies Association of Pakistan (ECAP) allowed the exchange companies to accommodate its customers by using the services of another facility of NADRA named e-Sahulat till the implementation of android based BVS i.e. November 05, 2021.
The SBP said that it forwarded the technical requirements, received from NADRA, to exchange companies with an objective to ensure implementation of BVS with the given timelines. The SBP further stated that any technical and financial matter related to implementation of BVS is the sole discretion of NADRA and respective exchange companies. “Therefore, ECAP or individual exchange company may like to approach NADRA directly for any technical / financial issues, regarding implementation and procurement of systems, devices etc.”
The SBP advised all exchange companies to deploy BVS as provided by NADRA at their outlets for biometric verification after November 05, 2021. However, any relaxation / extension in the timeline shall only be allowed to the companies that will approach the SBP with genuine reasons along with an explicit time bound implementation plan.”
The SBP said NADRA has informed that the android-based BVS could also be integrated with the core business application of the exchange companies. “Therefore, all exchange companies are required to continue their coordination with NADRA to ensure that the integrated system is implemented within the stipulated timeline of June 30, 2022,” the SBP added.
ISLAMABAD – A recent statement by State Bank of Pakistan (SBP) Governor Dr. Reza Baqir has drawn sharp criticism from senators, who termed it “irresponsible” and called for immediate clarification. The contentious statement pertains to the continuous depreciation of the Pakistani Rupee (PKR) against the US Dollar.
