BEIJING: Pakistan Prime Minister Imran Khan held wide-ranging talks with Li Keqiang, Premier of the State Council of the People’s Republic of China on Saturday.
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Find top stories in this section. Pakistan Revenue brings you the latest and most important news from Pakistan and around the world, keeping you informed with key updates and insights.
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President Alvi rejects FBR plea in maladministration cases
ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has rejected the plea of the Federal Board of Revenue (FBR) in maladministration cases.
President Arif Alvi while upholding the decisions of Federal Tax Ombudsman regarding maladministration of FBR officials in processing refund cases has directed the FBR to implement FTO ‘s recommendations.
READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer
The departmental plea regarding bar on jurisdiction of FTO in such cases has also been set aside by the president .He has directed The commissioner –IR , Commission West ZONE Islamabad and commissioner I-R Enforcement 11- CTO Karachi their orders by exercising powers conferred U/S 122 A ,as per law and report compliance within 30 days.
In all three cases the background of the case was similar as under: In the first case pertaining to Sahiwal against order framed under section 170(4) of the income Tax Ordinance, 2001 (the ordinance) for tax year 2018 by commissioner I.R Sahiwal Nazir Ahmad Proprietor of M/s Bilal Commission Shop.
READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case
He filed a complaint before the Federal Tax Ombudsman against failure to dispose of refund application for tax year 2018 which was disposed of vide findings with the recommendations that FBR may direct the commissioner –IR, Sahiwal Zone to complete the verification and settle complainants refunds for tax years 2018,after providing him opportunity of hearing as per law.
In the second Case an individual filed return of income for tax year 2020 under section 114(1) of the ordinance claiming refund amounting to Rs 0.188 million and e-filed refund application for tax year 2020. He contended that the department issued notice under section 170(4) of the ordinance for functioning supporting evidence. Although short time was allowed but he made compliance whereas the unit officer without considering reply of the complainant passed the impugned order, in terms of section 170(4) of the ordinance whereby by the refund application was rejected. He therefore took up the matter with the Federal Tax Ombudsman by filing complaint under section.
READ MORE: Alvi praises FTO role in resolving taxpayers’ complaints
Federal Tax Ombudsman thrashed the matter, directed FBR: It is an admitted position that the complaint e-filed refund application for tax year 2020. Evidently, the unit officer issued notice, under section 170(4) of the ordinance requiring the complainant to submit supporting evidence. Although the notice issued was in contravention of the FBR’S circular ,observed from perusal of the impugned order reflects that what to talk of providing statutory opportunity of impugned order passed under section 170 (4) of the ordinance.
In case No 3, Yousuf Irshad Hussain, (the complainant) a proprietor concern, filed returns of income for tax years 2016 to 2019 under section 114 (1) of the income tax ordinance ,2001 the ordinance claiming refund amounting to Rs 0.051 million, Rs 0.048 million, Rs 0.063 million and Rs 0.063 million and Rs 0.072 million.
READ MORE: PTCL registers 7.3% revenue growth for nine months
He e-filed refund applications for tax years 2016 and 2019 along with evidence of tax deduction .however, despite his persistent efforts the zonal CIR failed to serve on the complainant orders in writing of the decisions in terms of section 170(4) of the ordinance within the stipulated time .he therefore took up the matter with FTO by filing complaint under section 10(1) of the FTO ordinance.
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FBR issues list of 1,358 retailers for mandatory POS
ISLAMABAD: The Federal Board of Revenue (FBR) has notified a list of 1,358 retailers for mandatory installation of Point of Sale (POS) and integrate the same with the tax system.
The FBR on Friday issued the list of 1,358 retailers by notifying Sales Tax General Order (STGO) No. 9 of 2022 dated February 04, 2022.
The FBR said that the Finance Act, 2019 added sub-section (6) to 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 that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.
READ MORE: Prize scheme on invoices issued by retailers
The FBR added that in order to operationalize this important provision of 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 03, 2021.
READ MORE: FBR decides penal action against defaulting retailers
Through the instant STGO No. 9, a list of 1,358 identified tier-1 retailers has been placed on FBR’s web portal at www.fbr.gov.pk allowing them to integrate with FBR’s system by February 10, 2022, and the procedure of exclusion from this list of 1,358 identified retailers shall apply as laid down in Para 2 of STGO 1 of 2021 dated 03.8.2021.
“Upon the filing of Sales Tax Return for the month of January 2022 for all hereby notified retailers not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount,” the FBR said.
READ MORE: Imprisonment for retailers on tax integration failure
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PM Imran invites Chinese companies to invest in Pakistan
BEIJING (China): Prime Minister Imran Khan on Friday invited Chinese companies to invest in Pakistan and take benefit from the business-friendly policies of the government.
The prime minister, who held a series of meetings with the executives of Chinese State-owned and private corporate sectors, said Pakistan was offering conducive environment for investment in Special Economic Zones (SEZs) under the China Pakistan Economic Corridor (CPEC).
READ MORE: Prime Minister Imran kicks off visit to China
In his remarks, the prime minister appreciated the keen interest of the Chinese companies to invest in Pakistan.
The executives who met the prime minister included leadership of China Communication Construction Company (CCCC), Huazhong Technology, Zhejiang Seaport Group, Challenge Apparel, Hunan Sunwalk Group, Royal Group, China Road and Bridge Corporation (CRBC), Zhengbang Group and China Machinery Engineering Corporation (CMEC).
READ MORE: PM Imran terms exports, tax collection must for growth
The corporate leaders briefed the prime minister on the progress of their on-going projects in Pakistan.
They evinced keen interest in expanding investments in Pakistan in projects related to recycling of metals and paper, energy, textile, fibre-optics networks, housing, dairy and water management.
READ MORE: Timelines for CPEC projects should be adhered to: PM
The CCCC is a leading global construction and infrastructure development company; Huazhong Technology, specialises in integrated papermaking equipment; Zhejiang Seaport Group is one of China’s largest port operator; Challenge Fashions is a leading textile company; Hunan Sunwalk’s core business is in communications, 3D printing and construction; Royal Group is China’s largest buffalo milk producer; CRBC focuses in civil engineering and construction projects; Zhengbang Group is Jiangxi Province’s largest agricultural enterprise; and CMEC is one of Chinese top agro-industrial machinery company.
The prime minister was joined in the meetings by federal ministers, advisers and senior officials.
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Dollar plunges by PKR 1.04 in interbank
KARACHI: The US dollar plunged by Pak Rupee (PKR) 1.04 to Rs174.48 in the interbank foreign exchange market on Friday.
The rupee ended Rs174.48 to the dollar from previous day’s closing of Rs175.52 in the interbank foreign exchange market.
READ MORE: PKR up 89 paisas to dollar as IMF okays Pak tranche
The rupee is gradually making recovery against the dollar for the last eight consecutive days. The local currency recovered Rs2.50 against the dollar since recording at Rs176.98 to the dollar on January 26, 2022.
READ MORE: Rupee gains two paisas against dollar
Currency experts said that the rupee remained positive during the day after the decision of the IMF Executive Board to release $1 billion 6th tranche of EFF program for Pakistan.
Analysts said that the transfer of IMF tranche would help the country to boost foreign exchange reserves and support the local currency.
READ MORE: Dollar falls by 29 paisas against PKR
The foreign exchange reserves of the country deteriorated sharply. Pakistan’s liquid foreign exchange reserves fell by $482 million to $22.085 billion by week ended January 28, 2022 as against $22.482 billion by week ended January 21, 2022.
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Saudi oil facility for Pakistan to start soon
ISLAMABAD: Saudi Arabia to operationalize soon the oil facility to Pakistan, it was agreed at a meeting on Thursday.
Ambassador of the Kingdom of Saudi Arabia in Islamabad Nawaf bin Saeed Al-Malkiy called on the Federal Minister for Economic Affairs Omar Ayub Khan in his office on Thursday.
READ MORE: KSA extends oil on deferred payments to Pakistan
During the meeting, it was agreed to operationalize the Saudi Oil Facility at the earliest.
The Financing Agreement worth $ 1.2 billion for import for petroleum products was signed on November 29, 2021 between the Saudi Fund for Development (SFD) and Economic Affairs Division (EAD), Pakistan.
As per Financing Agreement, the SFD will extend financing facility up to $100 million per month for one-year for purchase of petroleum products on deferred payment basis.
Both the sides discussed ongoing development projects and new initiatives.
READ MORE: SBP signs $3bn deposit agreement with Saudi Fund
The Minister for Economic Affairs appreciated the Saudi support in the priority development areas, said a press release received here today.
They also discussed the remaining work of development projects in the earthquake affected areas of Azad Jammu & Kashmir (AJK) and Khyber Pakhtunkhwa (KP).
Saudi Fund for Development (SFD) is providing financial assistance for various development projects in the areas of Energy, Health, Education and Infrastructure.
Most recently, the SFD has committed to provide financing for Mohmand Dam Project, Shounter Hydropower Project, Jagran-IV Hydropower Project, Gravity Flow Water Scheme Mansehra, and Abbottabad- Muzaffarabad Road Project.
The Saudi Ambassador assured of continued support at all level to further strengthen the bilateral economic cooperation between the two brotherly countries.
The Saudi Ambassador expressed that the Kingdom of Saudi Arabia is committed to play a much stronger role in the socioeconomic development of Pakistan.
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Prime Minister Imran kicks off visit to China
ISLAMABAD: Prime Minister Imran Khan on Thursday kicked off a four-day visit to China. Prime Minister Imran will attend the ceremony of Winter Olympics and meet the Chinese leadership.
The prime minister’s delegation included Foreign Minister Shah Mahmood Qureshi, Finance Minister Shaukat Tarin, Planning Minister Asad Umar, Information Minister Chaudhry Fawad Hussain, National Security Adviser Dr Moeed Yousaf, Commerce Adviser Abdul Razak Dawood and Special Assistant on China Pakistan Economic Corridor Khalid Mansoor.
READ MORE: PM Imran terms exports, tax collection must for growth
The prime minister besides attending the ceremony of Beijing Winter Olympics will meet President Xi Jinping and Premier Li Keqiang.
Prior to departure, the accompanying ministers termed the prime minister’s visit to China of great significance.
Foreign Minister Shah Mahmood Qureshi said PM Khan’s meeting with the Chinese leadership would focus on bilateral strategic partnership, regional matters, and peace and security in South Asia.
READ MORE: PM Imran Khan announces food subsidy package
Finance Minister Shaukat Tarin said the prime minister during the visit would propose the Chinese leadership to relocate their industry in Pakistan’s Special Economic Zones for a win-win situation besides extending assistance in agriculture.
National Security Adviser Dr Moeed Yousaf said the visit would provide an opportunity to discuss ways to improve peace in Afghanistan to end terrorism.
READ MORE: PM Imran launches landmark Karachi BRTS project
Commerce Adviser Dawood said the meetings would the Chinese counterparts would focus on some areas of Free Trade Agreement and trade of cement, rice, fruit and vegetables.
During the visit of PM Khan, a book titled ‘China Pakistan Economic Corridor – Investment Opportunities in Pakistan’ will be presented to the Chinese president, premier and investors.
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FBR freezes accounts of top banker for tax recovery
The Federal Board of Revenue (FBR) has taken stringent action against a top banker by attaching three of his bank accounts for tax recovery.
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IMF board approves $1.059 billion tranche for Pakistan
ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) on Wednesday approved sixth tranche under $6 billion Extended Fund Facility (EFF) for Pakistan.
Finance Minister Shaukat Tarin announced this in a Tweet. “I am pleased to announce that IMF Board has approved 6th tranche of their program for Pakistan.”
Pakistan will get around $1.059 billion after the IMF Board approval. The IMF on November 21, 2021 stated that its staff had completed the sixth review and the release of next tranche was subject to approval from the executive board, which was to be scheduled to meet on January 12, 2021.
READ MORE: IMF wants Pakistan to improve tax to GDP ratio to 20%
The IMF also linked the approval of the next tranche with certain conditions, including autonomy of State Bank of Pakistan (SBP) and withdrawal of tax exemptions to the tune of around Rs350 billion.
READ MORE: Pakistan to emerge as food surplus country: PM Imran
Pakistan had requested to extend the date for scheduled meeting of the IMF board up to January 28, 2022 and later it was further requested to extend up to February 02, 2022.
READ MORE: IMF intervention to add economic miseries of Pakistan
In meantime, the government presented and got approval the Finance (Supplementary) Act, 2022 and SBP Amendment Act to comply with the conditions of the IMF.
Analysts said that the transfer of latest IMF tranche would help the country to improve foreign exchange reserves besides it would also support the Pak Rupee (PKR).
READ MORE: SBP responds to misconceptions on amendments to State Bank Bill
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Pakistan’s trade deficit widens by 92% in seven months
ISLAMABAD: Pakistan’s trade deficit has widened by 92 per cent during first seven months (July – January) of fiscal year 2021/2022, official statistics revealed on Wednesday.
The trade deficit ballooned to $28.8 billion during the first seven months of the current fiscal year as compared with $15 billion in the corresponding months of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).
READ MORE: Pakistan’s trade deficit swells by 100% in 1HFY22
The exports exhibited a growth of 24 per cent to $17.67 billion during the period under review as compared with $14.25 billion in the same period of the last fiscal year.
Meanwhile, the import bill of the country surged by 59 per cent to $46.47 billion during first seven months of the current fiscal year as compared with $29.25 billion in the corresponding months of the last fiscal year.
READ MORE: Pakistan’s trade deficit widens by 112% to $20.59 billion
The trade deficit widened by 26.49 per cent to $3.36 billion in the month of January 2022 as compared with the deficit of $2.66 billion in the same month of the last year.
The exports increased by 18.69 per cent to $2.55 billion in January 2022 as compared with $2.145 billion in the same month of the last year.
Similarly, the imports grew by 23 per cent to $5.9 billion in the month of January 2022 as compared with $4.8 billion in the same month of the last year.
READ MORE: Pakistan’s import bill surges by 65% in four months
However, imports registered a massive decline of 22 per cent to $5.9 billion in January 2022 as compared with $7.58 billion in the month of December 2021.
Similarly, exports fell by 8 per cent to $2.54 billion in January 2022 as compared with $2.76 billion in the previous month.
The trade deficit recorded a decline of 30 per cent to $3.36 billion in January 2022 as compared with the deficit of $4.81 billion in December 2021.
READ MORE: Pakistan’s trade deficit doubles in first quarter