KARACHI: Foreign investors at the Overseas Investors Chamber of Commerce and Industry (OICCI) have recommended harsh penalties for Intellectual Property Rights (IPR) violations.
(more…)Category: Trade & Industry
This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.
-
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.
-
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
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
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…) -
FPCCI seeks statutory time for return filing after error removals
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex trade body of the country, has urged the tax authorities to give statutory time for filing tax return after removing all errors in the return form.
“Proper legal time for compliance should be granted as per the statute after resolving all problems in the tax return forms,” said Suleman Chawla in a letter sent to Asim Ahmad, chairman, Federal Board of Revenue (FBR).
READ MORE: FBR advised to extend tax return filing date for three months
The apex trade body pointed out numerous errors and mistakes in the return forms on the Iris – the online filing portal of the FBR – both technical, related to IT, and legal.
Due to the technical errors the tax filers are reluctant to pay undue taxes, and their consultants remain unable to file the returns, the FPCCI said in the letter sent on September 24, 2022.
“It is regretful to note that none of the issues have been addressed as yet and, therefore, the pace of compliance of filing the tax returns is very slow,” Suleman Chawla said.
READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline
The FPCCI highlighted the following issues in its letter to the FBR chairman:
Column for adjustment of brought forward capital losses under the head of capital gains tax is not available in income tax returns form due to which tax on capital gain cannot be calculated correctly.
The column of tax credit for specified industrial undertaking under section 65G of the Income Tax Ordinance, 2001 is inadvertently available in the tax credit annexure of income tax return for salaried individuals, which has no correlation with such tax credit.
READ MORE: Penalties for failure to file return tax year 2022 within due date
Column for adjustment of brought forward capital losses under the head of capital gains is not available in Income tax return form due to which tax on capital gain cannot be calculated correctly.
The Column of tax credit for specified industrial undertakings u/s 65G of the Income Tax Ordinance, 2001 is inadvertently available in the Tax Credits Annexure of income tax return for salaried individuals, which has no correlation with such tax credit.
Although the rate of tax on contract receipts under section 153 was reduced from 7.5% to 7% for Tax Year 2022, however, there is no column for such reduced rate in the return for the TY 2022 available on IRIS.
The draft of manual return forms for the Individuals and AOPs for the Tax Year 2022 was issued belatedly on August 26, 2022, whereas the final SRO. 1733(1)/2022 was issued on September 13, 2022 meaning thereby only 17 days of time has been allowed to file the manual returns, which is insufficient as provided under the law.
READ MORE: FBR fails to remove return filing glitches; KTBA seeks legal time
The IRIS portal is calculating incorrect tax liability on gain on sale of immovable properties in violation of section 37(1A) of the Income Tax Ordinance, 2001 which needs to be taken care off as soon as possible.
The IRIS portal is calculating incorrect tax on profit/yield on Bahbood Certificates/ Pensioner’s Benefit Account/ Shuhada Family Welfare Account in violation of clause (6) of Part-III, 2nd Schedule of the Income Tax Ordinance, 2001, which provides that tax shall not exceed 10 percent of such Profit/ Yield.
There lies no option list in drop downs country and currency under Code “7006” having description “Investment (Non-Business) (Account / Annuity / Bond / Certificate / Debenture / Deposit / Fund / Instrument / Policy / Share / Stock / Unit, etc.)” due to which a taxpayer remains unable to file the Foreign Income & Assets Statement under section 116A(1) of the Ordinance.
Opening wealth is being shown in “Reconciliation of Net Assets” Value of opening net assets is being shown under code ‘703002’ despite the fact that the taxpayer’s residency status is selected as “non-resident” for Tax Year 2022 after which, he should not be required to file the wealth statement including reconciliation of net assets.
The withholding rates on payment of Dividend @ 7.5%, 15% and 25%, (under section 150 of the Ordinance) are appearing in the Income Tax Return Form of “Income for a person deriving income only from salary and other sources and the Column Code 64330052 (Dividend u/s 150 @25%) is missing.
Proviso was inserted under section 22(2) of the Tax Ordinance by Finance Act, 2020 whereby depreciation on additions to fixed assets made after 01-Jul-2020 would be reduced by 50% However, when entries related to written down values are entered in in depreciation schedule as opening values, the IRIS is calculating depreciation at 50% on total values.
In addition to above, what lately has been done by FBR is that it has deleted the column of “Adjustment of Refunds”, which is certainly an afterthought while the Manual Tax Returns, which were issued vide SRO 1612(I)/2022 dated 26 August, 2022 do retain the “Column of Tax Return Refund”. There is no explanation or justification for this glaring disparity, which is to be taken care of the clarification of Taxpayers.
Online Refund Adjustment Column is still not available on Return loaded on IRIS irrespective of the fact that it is available in the SRO issued by Board.
Profit on debt/interest income on government securities is subject to FTR
-
Textile Council recommends cotton import from India
KARACHI: Pakistan Textile Council (PTC) in a statement on Monday said the country should import cotton from neighboring India to avoid another balance of payment crisis.
The country’s textiles industry, which earned more than $19 billion in exports last year, is facing a shortage of raw material as flash floods have damaged about half of the nation’s cotton produce since June, it said.
“The unprecedented rainfall resulting in floods has caused havoc in Pakistan,” said the PTC.
One-third of Pakistan is submerged in water, thousands of homes have been destroyed, more than 1,500 people have lost their lives and most importantly about 18,000 sq km of cropland has been ruined, including about 45 per cent of the cotton crop.
The country will face a cost far greater than $10 billion in damages, with the loss of food crops alone amounting to about $2.3 billion, a particularly heavy burden at a time of rising food prices around the world.
Pakistan is a major producer of rice and cotton, and both crops have suffered severe damages.
As part of the devastation, flood damage will likely force Pakistan to increase cotton imports at a time when production in the US is forecasted to plunge by 28 per cent due to drought
And with restrictions on China, Pakistan will not be able to procure raw materials from there as well, the Council said.
The outlook for Brazil is also not very encouraging. According to ABRAPA, the drought there has already dried up an estimated 200,000 tons of cotton supply.
All these factors are causing the price of cotton to increase in local and international markets.
Given the continuous depreciation of the rupee and a record high shipping freight, importing cotton from far-located countries like the US, Brazil, Egypt, etc. will not be economically viable, the PTC said.
Last year, 2021-22, Pakistan’s textile exports rose to an all-time high of $19.3 billion but even achieving this mark would be challenging given the no availability of raw material to factories.
The Council said that it was imperative for Pakistan to keep its export growth momentum to finance the import bill and keep the balance of payment situation manageable and avoid default conditions.
“Import of raw cotton from India must be immediately allowed to mitigate the raw material shortage,” it said. The move will help Pakistan reduce trade time and curtail heavy logistics costs.
“The declining textile exports will lead to the balance of payment crisis, and reduced productivity will put millions of jobs at on stake which the country cannot afford,” the Textile Council warned.
The declining textile exports will lead to the balance of payment crisis, and reduced productivity will put millions of jobs at stake which the country cannot afford,” the Textile Council warned.
-
FBR advised to extend tax return filing date for three months
KARACHI: The Federal Board of Revenue (FBR) has been advised to extend the last date for filing income tax returns at least for next three months.
Muhammad Idrees, President, Karachi Chamber of Commerce and Industry (KCCI) in a letter sent to the Finance Minister on Monday requested to issue to the FBR for extension in last date for filing income tax returns from September 30, 2022 to December 31, 2022 keeping in view the unusual situation emerging all over the country due to recent rainfalls and flash floods.
READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline
KCCI President stated that the chamber was constantly being approached by the members of the business and industrial community and also by the people belonging to different walks of life who wanted the last date to be extended till December 31.
READ MORE: Penalties for failure to file return tax year 2022 within due date
“Due imposition of ban on imports which was followed by unusual situation all over the country emerging after torrential rainfalls and flashfloods, the taxpayers, particularly the members of the business & industrial community, are facing a lot of problems as a large portion of receivables from various parts of the country badly hit by floods are still pending,” he said, adding that it was a well-known fact that the business, commercial, agricultural and all other activities in the flood-hit areas have come to a total halt which has created serious cashflow issues and it will take at least two more months to return to normalcy.
READ MORE: FBR fails to remove return filing glitches; KTBA seeks legal time
In this scenario, it has become inevitable to provide relief to loyal taxpayers in shape of extension in last date hence, keeping in view the ground realities, he requested the Finance Minister to order FBR to extend the last date for filing income returns to December 31, 2022 which will be widely welcomed by the loyal taxpayers from all over the country.
READ MORE: FBR advised to fix glitches for smooth filing of income tax returns
-
Pakistan salt manufacturers go on indefinite strike
KARACHI: Salt Manufacturers Association of Pakistan (SMAP) has announced an indefinite strike, calling the salt prices hike unjustified by the Pakistan Mineral Development Corporation (PMDC).
During an emergency meeting of Salt Manufacturers Association of Pakistan (SMAP) Executive Committee, Ismail Suttar, Chairman SMAP along with members from Kalabagh and Quaidabad stated that Pakistan Mineral Development Corporation(PMDC) had made unjustified decision of price hike without consulting SMAP, this behavior of the cooperation is regarded as irresponsible and non-serious as they stay adamant on their plan that is creating some serious existential problems for the salt industry.
As a protest, SMAP executive committee has unanimously agreed to initiate strike action from Kalabagh. Chairman SMAP warned Kalabagh members will keep the strike till PMDC reverses the recent price increases and resolves all other outstanding issues, said the Chairman SMAP.
SMAP Executive Committee was of the considered opinion that this will be our first step, and if PMDC fails to constructively engage SMAP in resolution of these issues then further strike plans at other key salt mines will be implemented.
-
State Bank agrees to clear invoices up to $50,000: FPCCI
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that the State Bank of Pakistan (SBP) has agreed to allow clearance of consignments valuing up to $50,000.
FPCCI President Irfan Iqbal Sheikh in a statement apprised the entire business, industry and trade community of Pakistan that in a breakthrough achievement from the platform of FPCCI and under the leadership of its Senior Vice President and FPCCI’s focal person on SBP-related matters, Suleman Chawla, “SBP has agreed to clear / settle all the backlog and stuck up payments within two days, which fall under chapters 84 & 85 of the customs tariff; and, if their invoice values are up to fifty thousand dollars.”
READ MORE: KATI expresses concern over delaying revision in petroleum prices
Irfan Iqbal Sheikh maintained that FPCCI has been working relentlessly over the past couple of months on the issue of delayed clearance of dollar payments of importers; and, finally after multiple detailed rounds of consultative sessions between FPCCI and SBP, the central bank has agreed, in principle, to at least release all payments in the range of $50,000 or less.
Suleman Chawla informed that he has also released an official notification from FPCCI on the development to inform all members of the apex body & stakeholders of the lingering issue.
READ MORE: FBR suggested fixed tax regime for women entrepreneurs
He added that FPCCI has been receiving numerous calls each day for the past couple of months from across Pakistan and across various sectors affected by the restrictions – which were also impacting raw materials and equipment falling under chapters 84 & 85 – and,FPCCI is expecting that all payments falling under the aforementioned category will be cleared within this week.
READ MORE: Karachi Chamber urges allowing imports from India
Suleman Chawla reiterated that the commercial importers and manufacturers have suffered a lot due to the restrictions as these were announced abruptly and without any homework or consultation. Authorities should have been meticulously selective in implementation of the restrictions to only luxury items; which, in turn, would have saved the business community millions of dollars in demurrages, container charges and lost export orders, he added.
READ MORE: FPCCI rejects central bank’s claim of ‘no import restriction’