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  • Pakistan’s inflation climbs up 24-month high in January

    Pakistan’s inflation climbs up 24-month high in January

    ISLAMABAD: The inflation based on Consumer Price Index (CPI) in Pakistan recorded at 13 per cent or 24-month high in January 2022.

    Pakistan Bureau of Statistics (PBS) said on Tuesday, the CPI inflation general increased by 13 per cent on year-on-year basis in January 2022 as compared to an increase of 12.3 per cent in the previous month and 5.7 per cent in January 2021.

    READ MORE: January headline inflation may clock near 13%

    On month-on-month basis, it increased by 0.4 per cent in January 2022 as compared to decrease of -0.02 per cent in the previous month and a decrease of -0.2 per cent in January 2021.

    The PBS said that the CPI inflation Urban, increased by 13 per cent on year-on-year basis in January 2022 as compared to an increase of 12.7 per cent in the previous month and 5.0 per cent in January 2021. On month-on-month basis, it increased by 0.1 per cent in January 2022 as compared to increase of 0.3 per cent in the previous month and a decrease of -0.2 per cent in January 2021.

    READ MORE: Mini-budget likely to push up inflation: SBP

    CPI inflation Rural, increased by 12.9 per cent on year-on-year basis in January 2022 as compared to an increase of 11.6 per cent in the previous month and 6.6 per cent in January 2021. On month-on-month basis, it increased by 0.9 per cent in January 2022 as compared to decrease of -0.5 per cent in the previous month and a decrease of -0.3 per cent in January 2021.

    READ MORE: Headline inflation rises by 12.3% in December 2021

    The inflation based on Sensitive Price Indicator (SPI) on YoY increased by 20.9 per cent in January 2022 as compared to an increase of 20.9 per cent a month earlier and an increase of 7.7 per cent in January 2021. On MoM basis, it decreased by -0.8 per cent in January 2022 as compared to decrease of -0.4 per cent a month earlier and a decrease of -0.8 per cent in January 2021.

    The Wholesale Price Index (WPI) inflation on YoY basis increased by 24.0 per cent in January 2022 as compared to an increase of 26.2 per cent a month earlier and an increase of 6.4 per cent in January 2021. WPI inflation on MoM basis increased by 0.6 per cent in January 2022 as compared to a decrease of -0.2 per cent a month earlier and an increase of 2.5 per cent in corresponding month i.e. January 2021.

    READ MORE: Headline inflation surges by 11.5% in November 2021

  • Petroleum prices kept unchanged for next fortnight

    Petroleum prices kept unchanged for next fortnight

    ISLAMABAD: The government has kept the prices of petroleum products unchanged for next fortnight on Monday after Prime Minister Imran Khan rejected the proposals to hike the POL prices.

    Prime Minister Imran Khan Monday rejected proposals to increase the petrol price by Rs 10 per liter and diesel by Rs 14, in the national interest.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    The prime minister said that government would bear the burden of the price hike this time to protect the people from the additional economic burden.

    READ MORE: Prices of all POL products increased to wish New Year

    As the government was striving to avert the burden of inflation from the people, therefore the prime minister deferred the Energy Ministry’s summary despite the fact that the oil prices were increasing worldwide owing to the swelling global inflation.

    Following the decision, the prices of petroleum products will be maintained at: petrol Rs147.83 per liter; high speed diesel (HSD) Rs144.62 per liter; kerosene Rs116.48 per liter; and light diesel oil at Rs114.54 per liter.

    READ MORE: Petrol price reduces to Rs140.82 per liter

    A statement issued by the Finance Division stated that the petroleum products are showing substantial increase in the international market and presently trading at highest level since 2014. The oil prices have witnessed an increase of 14.5% just in last month in the global market.

    The existing Sales Tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets. The Government is bearing the revenue loss of around Rs.30 billion (fortnightly) on account of budgeted to existing PL and ST rates and Rs. 260 billion annually due to reduced ST rate.

    READ MORE: Govt. keeps petroleum prices unchanged

    Despite revenue losses due to rising petroleum prices globally, the Prime Minister of Pakistan has deferred the proposal by OGRA to increase up to Rs. 16.79/Litre in the petroleum product prices and desired that petroleum product prices shall remain the same from 1st February, 2020 as notified earlier on 15th January, 2022 for providing maximum relief to the general public. The Prime Minister has further desired to keep the prices at the same level through adjustments in Sales Tax, if required.

  • FBR posts 30% growth to collect Rs3.35 trillion

    FBR posts 30% growth to collect Rs3.35 trillion

    ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs3.35 trillion during the first seven months (July – January) 2021/2022 with a growth of over 30 per cent, a statement said on Monday.

    The FBR issued provisional numbers of collection made during first seven months of the current fiscal year. The revenue body collected Rs2.571 trillion in the corresponding months of the last fiscal year.

    READ MORE: FBR eyes Rs6 trillion collection in current fiscal year

    The seven months collection also surpassed the target of Rs3.09 trillion.

    The net collection for the month of January, 2022 realized Rs430 billion representing an increase of 17.2 per cent over Rs 367 billion collected in January, 2021. These figures would further improve before the close of the day and after book adjustments have been taken in to account.

    READ MORE: Annual sales tax collection from imports climbs up 27%

    On the other hand, the gross collections increased from Rs 2,705 billion during July, 2021 to January, 2022 to Rs 3,533 billion in current Financial Year July, 2021 to January, 2022, showing an increase of 30.6 per cent Likewise, the amount of refunds disbursed was Rs 182 billion during July, 2021 to January, 2022 compared to Rs 134 billion paid last year, showing an increase of 35.9 per cent.

    READ MORE: FBR identifies 1,284 retailers for POS integration

    It is pertinent to mention that FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximize revenue potential through digitization, transparency, and taxpayers’ facilitation.

    This has not only resulted in ensuring the ease of doing business but also translated in a healthy and steady growth in revenue collection. Likewise, the incumbent top leadership of FBR has launched a new culture of clean taxation with a clear focus on collecting only the fair tax and not holding up refunds which are due to be paid. This has not only fast tracked the process of bridging the trust deficit between FBR and Taxpayers but also ensured the much needed cash liquidity for business community.

    READ MORE: FBR may issue special procedure under sales tax law

    That’s precisely why, for the first time ever in the country’s history, FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government.

  • FBR implements new property valuations on February 01

    FBR implements new property valuations on February 01

    ISLAMABAD: The Federal Board of Revenue (FBR) will apply the new valuation tables for immovable properties in major cities of the country from February 01, 2022.

    The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022.

    The FBR on December 01, 2021 issued fresh and upward revised valuation tables for immovable properties located in 40 major cities of the country.

    READ MORE: FBR issues new, revised tables of property valuation

    The revenue body decision to defer the implementation came after several complaints received by the FBR those were pertaining to high valuation in the new tables.

    The complaints were lodged by stakeholders including real estate agents and town developers, who pointed out extraordinary rise in property rates in the latest valuation tables.

    The FBR issued detailed instructions to the tax offices on the procedure to be adopted to review the anomalies in the property rates and rationalize the same.

    Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.

    READ MORE: FBR’s new, old valuation tables for Karachi properties

    The FBR asked all the Chief Commissioners Inland Revenue (CCIRs) to constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021.

    Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. Chief Commissioners will undertake consultative process with the stakeholders and engage SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.

    To issue the fresh and revised valuation tables, the FBR exercised its powers vested in the Income Tax Ordinance, 2001. The aim was to bring the FBR values at par with the fair market values.

    However, certain objections from stakeholders highlighted anomalies and aberrations in the newly notified valuation tables. Although, the notified valuations have been arrived at by FBR Field Formations through a rigorous consultative process and wherefore have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.

    The VRCs shall decide upon the representations by January 10, 2022, and forward the same to FBR for notification. All recommendations made by VRCs vis-à-vis revaluations shall be re-notified on January 15, 2022, which shall come into force on January 16, 2022. In the meantime, SRO No.1534-1572(I)/2021 dated 01.12.2021 are held in abeyance to allow registration of the in-process transactions.

  • Regulatory duty on motor vehicles increased to 50%

    Regulatory duty on motor vehicles increased to 50%

    In a bid to curb the escalating import bill and foreign exchange outflow, the Federal Board of Revenue (FBR) unveiled a significant surge in regulatory duty on the import of new motor vehicles.

    (more…)
  • Rules amended on remittances on behalf of Hajj, Umrah organizers

    Rules amended on remittances on behalf of Hajj, Umrah organizers

    KARACHI: The State Bank of Pakistan (SBP) on Thursday amended instructions in Foreign Exchange Manual regarding remittances on behalf of Hajj group and Umrah organizers.

    The SBP invited attention of banks and exchange companies to Para 45A and 45B, Chapter 17 (Travel) of Foreign Exchange Manual in terms of which banks and exchange companies are allowed to make advance remittances on behalf of the Hajj Group Organizers and the Umrah Organizers, subject to compliance of applicable terms and conditions.

    READ MORE: SBP shortens period to 120 days for bringing export earnings

    In order to streamline the instructions relating to advance payments by Hajj and Umrah Organizers, the sub-para (viii) of Para 45A and sub-para (viii) of Para 45B of Chapter 17 stand omitted.

    The omitted instructions are:

    READ MORE: SBP introduces licensing, regulations for digital banking

    “viii) In the case of repatriation of advance payment, exchange gain, if any, will not be passed on to the HGO, rather the same will be deposited in favor of State Bank of Pakistan. To this effect, the Authorized Dealer should get consent/agreement signed by the concerned HGO at the time of effecting remittance. 7The exchange gain should be deposited in favor of the State Bank through RTGS Clearing Account No. 427518. In this respect, a consolidated statement regarding all such cases will be submitted by Head/Principal Offices of the Authorized Dealers to the Director, Foreign Exchange Operations Department, SBP-Banking Services Corporation on monthly basis as per prescribed format (Appendix V-141).”

    READ MORE: SBP introduces Shariah compliant OMO injections

    “viii) In case of repatriation of advance payment(s), exchange gain, if any, will not be passed on to the Umrah Organizer, rather the same will be deposited in favor of State Bank of Pakistan. To this effect, the Authorized Dealer should get consent/ agreement signed by the concerned Umrah Organizer. 9The exchange gain should be deposited in favor of the State Bank through RTGS Clearing Account No. 427518. In this respect, a consolidated statement regarding all such cases will be submitted by Head/Principal Offices of the Authorized Dealers to the Director, Foreign Exchange Operations Department, SBP-Banking Services Corporation on monthly basis as per prescribed format (Appendix V-143).”

  • Services tax on forex companies under provincial ambit

    Services tax on forex companies under provincial ambit

    Islamabad, January 21, 2024 – The Federal Board of Revenue (FBR) issued a clarification in response to recent news reports, asserting that the tax collection on services provided by foreign exchange companies falls under the jurisdiction of provinces.

    (more…)
  • FBR issues updated rates of duty, taxes on mobile phones

    FBR issues updated rates of duty, taxes on mobile phones

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued the updated applicable rates of duty and taxes for clearance of mobile phones.

    The FBR said that following rate of duty and taxes for the clearance of mobile phones shall be applicable during (2021-2022) (with passport applied within 60 days of arrival in Pakistan):

    READ MORE: FBR collects mobile phone tax, PTA clarifies

    Mobile Phones having cost and freight (C&F) value up to $30, the rate of duty and tax has been fixed at Rs430.

    Mobile Phones having C&F value above $30 and up to $100, the rate of duty and tax has been fixed at Rs3,200.

    Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs9,580.

    Mobile Phones having C&F value above $200 and up to $350, the rate of duty and taxes shall be Rs12,200 + 17 per cent Sales Tax Ad Valorem.

    READ MORE: FBR increases income tax to 15% on cellular services

    Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs17,800 + 17 per cent Sales Tax Ad Valorem.

    Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs27,600 + 17 per cent Sales Tax Ad Valorem.

    Rate of duty and taxes on mobile phones 2021/2022 (Applied with CNIC):

    Mobile Phones having C&F value up to $30, the rate of duty and tax has been fixed at Rs550.

    READ MORE: FBR issues new FED rates on motor vehicles

    Mobile Phones having C&F value above $30 and up to $100, the rate of duty and taxes has been fixed at Rs4,323.

    Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs11,561.

    Mobile Phones having C&F value above $200 and up to $350, the rate of duty and tax shall be Rs14,661 + 17 per cent Sales Tax Ad Valorem.

    Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs23,420 + 17 per cent Sales Tax Ad Valorem.

    READ MORE: Banks to share business account details to FBR

    Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs37,007 + 17 per cent Sales Tax Ad Valorem.

  • FBR eyes Rs6 trillion collection in current fiscal year

    FBR eyes Rs6 trillion collection in current fiscal year

    ISLAMABAD: Dr. Ashfaq Ahmed, Chairman, Federal Board of Revenue (FBR) on Wednesday hoped that the revenue collection for the current fiscal year will increase to Rs6 trillion – surpassing the target of Rs5.83 trillion.

    “Our revenue target is Rs 5.830 trillion which is expected to increase till Rs6 trillion by June 2022. We have collected Rs 300 billion more revenue than our target till December 31,” Dr. Ashfaq said.

    READ MORE: DG Customs Valuation powers strengthened

    He expressed his hope that this year, the FBR would achieve all its revenue targets and would further play its role in the country’s economy.

    The FBR chief hinted for achieving revenue target of Rs 8 trillion by 2023 as it would set the country’s economy in a new direction.

    He said that Prime Minister Imran Khan has his own vision for revenue collection and economic development in the country, in which, achieving revenue target of up to Rs 8 trillion is one of top priorities.

    READ MORE: Tax imposed to protect domestic entertainment industry

    Chairman expressed these views while talking to the journalists here.

    Replying to a question, he said that Pakistan Customs was the protector of economic borders of the country and that they have always been playing its role for trade promotion.

    He said that Pakistan Customs was playing its best role in enforcing trade laws at Chaman and Torkham borders.

    He said that transparent trade brought prosperity and development in the country.

    READ MORE: FBR slaps sales tax at 17% on supply of food stuff

    He vowed that, “we would digitalize every FBR’s agency”.

    He said that FBR currently has the largest data portal which is in a dire need of digitization.

    This data can be very important in the trade and economic development of the country.

    He said that at present, the role of FBR was very important in all three trade corridors including Chaman and Torkham, which would be strengthened with China Pakistan Economic Corridor (CPEC).

    READ MORE; FBR enhances tax rates on motor vehicle registration

  • Rupee sinks for third straight day against dollar

    Rupee sinks for third straight day against dollar

    KARACHI: The Pak Rupee (PKR) fell against the dollar for the third straight day on Wednesday. The rupee recorded decline of 26 paisas against the dollar to end at Rs176.98 to the dollar from previous day’s closing of Rs176.72 in the interbank foreign exchange market.

    The local unit cumulatively declined by 74 paisas during past three trading sessions from closing of Rs176.24 on January 21, 2022.

    READ MORE: Rupee falls 23 paisas on dollar demand surge

    Currency experts said that the rupee witnessed depreciation due fall in foreign exchange reserves of the country and surge in dollar demand for import payments.

    READ MORE: Rupee plummets on high oil prices

    Pakistan’s liquid foreign exchange reserves dropped by $551 million to $23.35 billion by week ended January 14, 2022 as compared with $23.901 billion by week ended January 07, 2022.

    READ MORE: Rupee recovers 25 paisas on easing oil prices

    The experts said that the rupee was under pressure due to higher payments for oil imports. They said that the dollar demand went up owing to rise in international oil prices.

    The oil bill of Pakistan jumped by 113.4 per cent during first half of the current fiscal year. The bill surged to $10.18 billion during July – December 2021/2022 as compared with $4.77 billion in the corresponding period of the last fiscal year.

    READ MORE: Rupee drops 27 paisas against dollar