Pkrevenue.com

Category: Trade & Industry

This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.

  • Karachi Chamber welcomes Dar’s decisions

    Karachi Chamber welcomes Dar’s decisions

    Karachi Chamber of Commerce and Industry (KCCI) on Tuesday welcomed the decisions of Finance Minister Ishaq Dar regarding keeping oil prices unchanged, extending return filing date and enhancing threshold for payments of letter of credit.

    KCCI President Mohammed Tariq Yousuf appreciated Finance Minister Ishaq Dar’s announcement to keep petroleum prices intact and extent last date for filing Income Tax Return till November 30, 2022.

    READ MORE: KCCI demands one month date extension for return filing

    He said that the business community warmly welcomed these announcements and the determination being exhibited by government to pay special attention to the issues and recommendations being given the business & industrial community.

    Yousuf said that the Finance Minister’s decision to raise the LCs limit from $50,000 to $100,000 was undoubtedly a pro-business move which was being demanded by the Karachi Chamber since long.

    READ MORE: Furniture retailers want fixed tax regime

    “This would help in expediting 8,000 cases of suspended Letters of Credit (LCs) and we are delighted to see that the State Bank has been directed to start clearing this LCs from today,” he added.

    He was of the opinion that the government was trying its best to provide relief to the business and industrial community despite facing severe economic challenges.

    READ MORE: KCCI advises importers to manufacture motorcycle spare parts

    Thanks to the sincere efforts being made by Finance Minister, Pakistani rupee had one of the strongest performances in Asia in October, rising by 3.3 percent against the dollar. “Effective strategies have to be defined and implemented to bring down dollar below Rs200 level which would provide a huge relief to our economy which is overburdened with foreign debts.”

    He further suggested that Fuel Adjustment Surcharge being charged from the industry needs to be rescinded as the same was creating issues for the General Industry and SMEs who were the backbone of country’s economy and need to be protected.

    READ MORE: Karachi Chamber urges allowing imports from India

  • Pakistan business confidence index drops to lowest level

    Pakistan business confidence index drops to lowest level

    KARACHI: A survey conducted by Gallup Pakistan revealed that business index has dropped to the lowest level due to political and economic uncertainties.

    According to Gallup Pakistan survey conducted in the last quarter of 2022 for the Gallup Business Confidence Index, 65 per cent of business owners believe their businesses are facing bad conditions.

    Industrial machines businesses are doing the best out of all types of businesses, with 75 per cent of them believing that conditions are good. Cloth and garment shops are experiencing the worst level of confidence, with 81 per cent of them saying business conditions are bad.

    Findings of the survey show the Net Future Business Confidence score has worsened by 50 per cent since the beginning of 2022 and is now at -10 per cent.

    Compared to earlier this year, the number of businesses saying the country is headed in the wrong direction has gone up by 32 per cent.

    Less than 15pc of businesses in Punjab, Sindh and Khyber-Pakhtunkhwa believe that the country is headed in the right direction.

    A quarter of businesses in Balochistan believe the same.

    Similar to the findings of the survey conducted in the first quarter of 2022, inflation remains the most-cited problem that businesses would like the government to solve by the end of this year.

    As many as 72 per cent of the businesses surveyed reported experiencing loadshedding every day.

    A considerable increase in the number of businesses experiencing loadshedding was witnessed in the fourth quarter. About 19 per cent of the businesses that reported facing loadshedding within a day experienced it for two hours, the survey showed.

    As many as 81 per cent of the businesses said they do not believe the court system is fair, impartial and uncorrupted versus 7 per cent in the first quarter of 2022. More businesses from Balochistan disagree with the idea that the court system is fair, impartial and uncorrupted than any other province, survey results showed.

    One-quarter of the businesses surveyed reported their establishment was visited by tax officials, down 12 per cent from the previous survey.

    A sample of more than 700 business owners and managers across Pakistan were asked how well their businesses were doing. After Covid-19 peaked, businesses started to express greater confidence. But this confidence plummeted between the beginning and the end of 2022.

    “This sudden change, and a 63 per cent fall in the Current Business Situation score, may be due to the continuous political instability over the year,” it said.

    The survey asked business owners which problems were affecting their businesses considerably. Besides inflation, “customer shortage” was a problem that 8 per cent of them faced. High taxes were also perceived as a problem by 4 per cent of businesses.

    “Gallup Business Confidence Report for the fourth quarter of 2022 paints a bleak picture. The index values are the worst since Gallup started the project in 2019, which includes Covid-19 times,” said Bilal Ijaz Gilani, executive director of the Gallup Pakistan and chief architect of the Gallup Pakistan Business Confidence Index.

    “The report comes after Pakistan faced the worst floods in decades. The business community awaits strong and decisive steps by the government,” he added.

  • KCCI demands one month date extension for return filing

    KCCI demands one month date extension for return filing

    The Karachi Chamber of Commerce and Industry (KCCI) has called upon the Federal Board of Revenue (FBR) to extend the deadline for filing income tax returns, citing economic crises and political instability as the primary reasons for the request.

    (more…)
  • Furniture retailers want fixed tax regime

    Furniture retailers want fixed tax regime

    KARACHI: Pakistan Furniture Association (PFA) has demanded fixed tax regime for their retail outlets. In this regard the association on Monday asked the Karachi Chamber of Commerce and Industry (KCCI) to raise the issue at higher platform.

    Senior Vice Chairman Pakistan Furniture Association (PFA) Rana Waheed Murad, while referring to several discussions and a meeting held on June 22 with the then Finance Minister Miftah Ismail and Chairman Federal Board of Revenue (FBR), stated that it was principally agreed in the said meeting that the furniture retailers will be brought into fixed tax regime but unfortunately, the agreement reached stands unimplemented to date hence, the Karachi Chamber must take up this serious issue with relevant authorities so that furniture shopkeepers could be pulled out of Tier-I retailers category and subjected to fixed tax.

    READ MORE: KCCI advises importers to manufacture motorcycle spare parts

    Rana Waheed, who led a PFA delegation to KCCI, appreciated Chairman Zubair Motiwala, who, as Chairman of the Anomaly Committee formed by the government after this year’s Federal Budget announcement, effectively advocated PFA’s valid demand and also succeeded in convincing the policymakers to provide relief which was agreed but remains unimplemented.

    The situation has crated a lot of problems for businessmen associated with furniture sector who were widely being harassed by FBR officials through unwarranted notices.

    READ MORE: KCCI managing committee candidates elected unopposed

    President KCCI Muhammad Tariq Yousuf, Vice President Muhammad Haris Agar, Chairman Special Committee for Small Traders Majeed Memon along with KCCI Managing Committee Members and PFA delegation members attended the meeting.

    Senior Vice Chairman PFA was of the opinion that furniture industry has great potential to grow and boost exports of the country to US$ 1 billion but placing furniture retailers in Tier-1 category for Sales tax collection has created lot of difficulties for this sector that was terribly affecting business activities.

    “We are capable of competing with Turkey, Vietnam and China etc. but will not be able to do so if our issues stand unresolved,” he added and stressed that furniture retailers must be brought under fixed tax regime which would increase the tax revenue for the country and reduce problems being faced by furniture retailers.

    READ MORE: APTMA demands immediate release of textile machinery

    He also drew KCCI’s attention towards another serious issue as all the imported wood consignments have now been subjected to seeking clearance/ certification from Department of Plant Protection (DPP) which creates a lot of problems in clearing this essential raw material. “We are being asked to get the wood crust removed before shipping as it might carry bacteria but it was technically impossible as without this crust, the wood becomes drier and totally useless within a couple of months,” he explained, adding that furniture sector has witnessed strong growth in exports but it would not last long and start descending soon if such anti-business measures were not promptly reverted.

    Rana Waheed, while congratulating the newly elected Office Bearers, hoped that the new team at KCCI would prioritize the issues being faced by furniture shopkeepers and make all out efforts to get them amicably resolved so that this important industry could be saved from getting into further disaster.

    READ MORE: Date extension demanded for electricity bills payment

    President KCCI Tariq Yousuf, after listening to the grievances being faced by PFA members, assured to take up their Tier-I retailers’ issue and request the government to fulfill its commitment made to the perturbed businessmen from furniture sector.

    He advised PFA delegates to also bring any other Customs related or Law & Order related issues to KCCI’s notice so that its relevant subcommittees could promptly get them resolved with a view to minimize the hardships being faced by manufacturers, sellers and exporters of furniture.

  • KCCI advises importers to manufacture motorcycle spare parts

    KCCI advises importers to manufacture motorcycle spare parts

    Karachi Chamber of Commerce and Industry (KCCI) has advised importers of motorcycle spare parts to set up industry for manufacturing locally.

    KCCI President Mohammad Tariq Yousuf advised the importers of motorcycle spare parts to go for setting up their own cottage industries for manufacturing various spare parts which were currently being imported as it was no more feasible to import these parts because of uncertain situation triggered by unstoppable currency fluctuation.

    READ MORE: KCCI managing committee candidates elected unopposed

    Exchanging views with a delegation of All Pakistan Motorcycle Spare Parts Importers and Dealers Association (MSPIDA) which was led by its Chairman Nasir Maqbool during visit to KCCI, Tariq Yousuf stressed that setting up small industries for manufacturing spare parts was the only solution to most of the problems being faced by traders including exorbitant customs duty, delays in clearance of consignments, heavy demurrage/ detention losses and high cost of imported goods due to rising dollar value.

    “You have to go for import-substitution otherwise, all the issues being faced today would remain as they are in future so you must look into the possibility of becoming independent by setting up small manufacturing units,” he added.

    READ MORE: APTMA demands immediate release of textile machinery

    Senior Vice President KCCI Touseef Ahmed, Vice President KCCI Muhammad Haris Agar, Chairman KCCI’s Special Committee for Small Traders Majeed Memon, Former President KCCI Iftikhar Ahmed Vohra, Former Chairman MSPIDA Faisal Khalil, KCCI Managing Committee Members and MSPIDA Members also attended the meeting.

    Tariq Yousuf assured that the Karachi Chamber, being the actual representative of the entire business and industrial community, was well-aware of the issues being faced by shopkeepers due to rising street crimes and has constantly been pushing the Law Enforcing Agencies to take stringent steps so that they could fearlessly carry out their businesses.

    READ MORE: Date extension demanded for electricity bills payment

    “Any MSPIDA member, who faces problems in dealing with any law-and-order issues can easily get in touch with KCCI’s Police Chamber Liaison Committee and Law & Order Subcommittee who are working round-the-clock to help out the perturbed shopkeepers, businessmen as well as the industrialists”, he said.

    Moreover, all MSPIDA members facing delays in clearance of imported goods can also approach KCCI and we will get in touch with the Customs Authorities and the State Bank of Pakistan so that the imported items could be cleared within the earliest possible time which would save importers from suffering grave losses on account of demurrage and detention charges, assured President KCCI.

    He also stressed that the government must look into the possibility of bringing down customs duty of spare parts and rationalize Valuation rulings as these were not supporting the economy but paving way for smuggling and causing losses to the national exchequer.

    READ MORE: Power tariff hike termed disaster for industries

    Earlier, Chairman PASPIDA Nasir Maqbool, in his short remarks, congratulated the newly elected Office Bearers and hoped that the support and cooperation between the two institutions would strengthen further in the days to come and collective efforts will be made for resolving numerous issues particularly the Customs and Valuation issues being faced by the importers of spare parts.

    Speaking on the occasion, Former Chairman PASPIDA, while agreeing with President KCCI’s viewpoint about import-substitution, stated that although many importers of spare parts have established small manufacturing units so that they could locally manufacture various imported items but the raw material required for manufacturing these spare parts has also been blocked under Customs Tariff Section 84 and 85 which needs attention.

    He said that exorbitant customs duty of 35 percent along with 11 percent additional duty, high GST and other levies were having an overall impact of around 90 percent on the cost of imported spare parts of motorcycles, making this important mode of travelling costlier and beyond the reach of poor segment of society.

    “We request KCCI to take up this important issue with relevant policymakers in Islamabad so that the customs duty and other taxes could be drastically reduced which would not only save relevant businesses but also prove favorable for the economy by discouraging widespread smuggling of spare parts”, he added.

  • Foreign investors demand harsh penalties for IPR violations in Pakistan

    Foreign investors demand harsh penalties for IPR violations in Pakistan

    KARACHI: Foreign investors at the Overseas Investors Chamber of Commerce and Industry (OICCI) have recommended harsh penalties for Intellectual Property Rights (IPR) violations.

    (more…)
  • FBR stops sales tax refunds: NKATI

    FBR stops sales tax refunds: NKATI

    KARACHI: North Karachi Association of Trade & Industry (NKATI) has said that the tax authorities have stopped sales tax refunds for the last one month.

    Faisal Moiz Khan, NKATI President, in a statement issued on Monday expressed deep concern over the undue delay in payment of sales tax refund claims by the Federal Board of Revenue (FBR), and demanded to release funds immediately as per the rules, as the exporters, especially the textile exporters, were facing difficulties due to unjustified delay in sales tax refund claims contrary to the sales tax rules.

    READ MORE: NKATI appeals release of stuck up textile machinery

    NKATI president said that as per Rule F39 of the Sales Tax Act, 2006, sales tax refund claims for which approved electronic refund payment orders (ERPOs) were issued, will pay within 72 hours but funds have been stopped for more than a month.

    Due to stoppage of refunds, exporters, especially the small and medium exporters, were facing severe financial crunch. “As a result of which the production as well as the exports also badly affected,” he added.

    Moiz said that several requests have been made by the exporters to the FBR for immediate release of refund claims, but the payment of refunds is still pending.

    READ MORE: NKATI asks SBP to stop free-fall in rupee value against dollar

    “Due to the government’s inability to pay sales tax refunds to textile exporters under approved electronic refund payment orders by the end of December 2022 and FBR’s irresponsible statement that the government did not have the relevant funds for the payment, the exporters is facing serious concern, as their billions of rupees are stuck with the government in the form of sales tax refunds, which the government is using delay tactics to pay.”

    READ MORE: NKATI launches industrial area beautification

    NKATI president was of the view that the textile exporters are concerned that the government has mismanaged their sales tax funds and used these funds for some other purpose, so the exporters are suffering from this irregularity of the government and the export production is also severely affected, and the worrying thing is that foreign buyers are also cancelling their orders due to which the exporters are facing huge losses.

    Faisal Moiz demanded that payments of sales tax refund claims under approved electronic refund payment orders should be made within 72 hours as per rules and regulations.

    READ MORE: NKATI urges PM Imran to reduce petroleum prices

  • Women entrepreneurs organize breast cancer awareness seminar

    Women entrepreneurs organize breast cancer awareness seminar

    KARACHI: Women entrepreneurs belonging to various chambers and associations have organized a seminar for awareness on breast.

    Women Entrepreneurs Committee of Federation of Pakistan Chambers of Commerce & Industry and Karachi Women Chamber of Commerce and Industry Malir (KWCCI Malir) in collaboration with Samina Alvi Task force organized a seminar on Breast Cancer Awareness aimed at providing awareness to women about this disease.

    In the seminar, President FPCCI, Irfan Sheikh, SVP Suleman Chawla, VP Shabbir Mansha Churra, VP Haji Yaqoob, VP Engr. M. A. Jabbar, VP Shaukat Omerson, Convener Women Entrepreneurs Committee FPCCI and Founder President, KWCCI District Malir, Nazli Abid Nisar, MNA Syma Nadeem, Member Samina Alvi Task Force Misbah Khalid, Dr. Kausar, Plastic Surgeon and Breast Cancer Specialist, South City, Shahid Khan, Brooklyn Chamber of Commerce VP, FPCCI Rafat Alam, Dr Sana Mirza, Chairperson and associate professor, Lums, SVP KWCCI District Malir Afzala Shaheen , VP Yasmeen Arif and Farah khan were also attended the awareness session.

    Irfan Iqbal, FPCCI President, said that it is very important for women to be healthy for the formation of a strong society. FPCCI provided 2 vans equipped with modern medical facilities to Cancer Care for providing healthy life to women, and 300 women were tested out of which 11 women were found to have breast cancer.

    Nazli Abid Nisar, Convener FPCCI Women Entrepreneurs Committee and Founder President of Karachi Women Chamber of Commerce & Industry Malir, said that we have been organizing seminars with the support of Samina Alvi Task Force for 3 years and to prevent women from this disease. Providing awareness.

    “If a woman is healthy and strong, then a strong society will be formed and women can work by sitting at home alongside men”, she said.

    Nazli Abid was of the view that we want to reach the government from the platform of FPCCI to provide medical teams in cities and villages to prevent breast cancer so that women can be made aware of their health and provide treatment facilities.

  • KCAA’s managing committee assumes charge in 15th AGM

    KCAA’s managing committee assumes charge in 15th AGM

    KARACHI: The newly elected (unopposed) managing committee of Karachi Customs Agents Association (KCAA) on Wednesday assumed the charge at 15th Annual General Meeting (AGM).

    The list of the newly inducted Office Bearers and Members Managing Committee is as follows:

    Office Bearers:

    01. Nadeem Kamil (President)

    02. Gulzar Shah Meshwani (S. Vice President)

    03. Akhter Ali Sherwani (Vice President)

    04. Hasan Sheikh Vohra (Vice President)

    05. Rana Zahid Farooq (Vice President)

    06. Sh. Muddasir Rafiq Magoon (Vice President)

    07. Zahid Sharif (Vice President)

    08. Zahid Tanveer (Vice President)

    09. Zqhid Bashir Chaudhry (General Secretary)

    10.0Junaid Mahmood (Joint Secretary)

    11. Mirza Muhammad Shariq (Information Secretary)

    12. Muhammad Munaf Jangda (Finance Secretary)

    Member Managing Committee:

    13. Abid Hussain Choudhry

    14. Ashhad Jamal

    15. Danish Riaz

    16. Faraz Ahmed Tanoli

    17. Hassan Shams Dar

    18 Islah Ali Ansari

    19. Malik Muhammad Shabbir

    20. Muhammad Abdul Mateen

    21. Muhammad Bilal Ahmed

    22. Muhammad Mansha

    23. Muhammad Mansoor Bhagwani

    24. Muhammad Mubashir Hussain

    25. Muhammad Rizwan Meer

    26. Noor Ali

    27. Raheel Gohar

    28. Rana Tonveer Hussain

    29. Syed Faisal Kamran Kamal

    30. Tariq Mehmood Malik

  • SITE Association demand date extension for income tax return filing

    SITE Association demand date extension for income tax return filing

    Abdul Rasheed, the President of the SITE Association of Industry, has urged the government to extend the deadline for filing income tax returns, citing the recent heavy rains and floods that have severely impacted business activities across the country.

    (more…)