KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly criticized the Federal Board of Revenue (FBR) for its lack of responsiveness in addressing taxpayers’ concerns.
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This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.
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KCCI expresses concerns over sudden stoppage of National Saving payments
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday expressed deep concerns over sudden stoppage of payments by National Saving Centers (NSCs) and urged the government take immediate action in this regard.
KCCI President Shariq Vohra in a statement, while expressing deep concerns over the sudden stoppage of payments by NSCs, urged the government to look into this serious issue as any delay in these payments would intensify the hardships mostly for the senior citizens including retired individuals and widows whose lives depend on timely payments.
The President KCCI pointed out that KCCI has received numerous complaints as the returns of many individuals against their investments in NSC certificates have been put on hold without a valid reason and they all were extremely worried about it.
“It is a well-known fact that these payments belong mostly to senior citizens and widows whose lifetime savings are invested in certificates so that they could utilize the monthly returns on their daily bread and butter. Hence, it is really unfair to stop such critically and economically important payment,” he added.
He said that on one hand, the Federal Ombudsman has directed the Pakistan Post to digitize all Post Offices by February 2021 to avoid delay in payment of profits against saving certificates issued to senior citizens and widows but on the other hand, this important segment remains deprived as their request for release of outstanding payment has been turned down.
He stressed that in order to facilitate the senior citizens, the National Saving Center has to be completely digitalized and its operations should be improved as per banking standards while the profits payable should instantly be transferred into the personal accounts of its account holders, which would be widely welcomed as the senior citizens will not be required to visit saving centers every month to claim their dues and they will be able to access their profits online.
President KCCI requested the Ministry of Finance and the State Bank of Pakistan to issue directives for immediate release of payments to the masses so that their lives were not disturbed.
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Customs reluctant to give WeBOC access to ANF
KARACHI: Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotics Force (ANF) said that the force has not direct access to export related documents on Customs online system i.e. WeBOC, according to a statement issued on Saturday.
He said that ANF does not require any sort of undertaking or affidavit from a clearing agent or exporter. “If somebody from the terminal operators demands such a document then it is not under the instruction of ANF,” he said while talking to office bearers of Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
While responding to the issues raised by participants of the meeting, said that it is high time to put combined efforts into the development of the economy in Pakistan.
He further informed that drug smuggling is a transnational crime. Federal Board of Revenue (FBR), Customs, Coast Guards, ANF and other departments are working under their authorities. “We do not receive BL, invoice, or other documents, and Customs are reluctant to permit us access to the WeBOC system,” he added.
Mian Nasser Hyatt Maggo, President of FPCCI while welcoming Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotic Force Karachi stated that repacking of the exported goods after examination caused delays, cost and confidence of the buyers.
The President FPCCI also appreciated the working of the force especially during the lockdown due to COVID-19. He added that the problems of the trade to the extent of 70 – 80 percent have been solved due to cooperation of the force officials.
However there are still some problems being faced by the trade and industry such as repacking of the export cargo after examination by ANF.
The export cargo after examination is usually stuffed and the worthy factory packing is disturbed due to which there are complaints from the buyers that the packing of the goods is not satisfactory.
There is a need of updating the information of precursor chemicals within the ANF staff working at ports. This may be achieved with joint sessions of ANF and stakeholders.
There should be a fixed time period by the ANF for breaking the seal of the container so that the clearing agent may line himself up for examination accordingly. This will also save the exporter from shutting out of his containers by the shipping agents and could be exported in time.
The meeting was attended by Athar Sultan Chawla, Arif Jeeva Vice Presidents, Muhammad Ayub in charge of the port control unit Anti-Narcotics Force Khurram Ijaz, Waseem Vohra former Vice Presidents and Shabbir Mansha,
Convener FPCCI Committee on Customs. Meeting was concluded with the presentation of FPCCI crest to the Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotic Force Karachi.
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Foreign investors elect Irfan Siddiqui as body chief
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has elected Irfan Siddiqui as its president for the 2021 term at its annual general meeting held on Monday. Siddiqui, who currently serves as the President and CEO of Meezan Bank Limited, will lead the chamber, which represents foreign investors in Pakistan.
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Turkish envoy holds meetings with FPCCI, KCCI members to boost bilateral trade
KARACHI: Consul General of Turkey Tolga UCAK on Tuesday held meetings with members of leading trade bodies of Pakistan to discuss possibilities of enhancing trade and commercial ties between the two countries.
During his visit to Federation of Pakistan Chambers of Commerce and Industry (FPCCI) commenting on the proposals of FPCCI President Mian Nasser Hyatt Maggo, the Consul General informed that there will be an inauguration of the services of Cargo Train between Istanbul and Islamabad with transit time of 9-10 days. This initiative will go a long way in promotion of bilateral trade.
He also offered to organize road show in Pakistan with attracting Turkish Products. He was optimistic that in the post coronavirus the volume of bilateral trade will be further enhanced for which we have to prepare ourselves and make plans of future activities.
He assured his full support to the initiative undertaken by FPCCI and its JBC for the joint activities between both countries.
During his visit to Karachi Chamber of Commerce and Industry (KCCI), Tolga UCAK stressed the need to encourage joint ventures in different sectors of the economy whereas Turkey can also assist in setting up a tram service system in Karachi, particularly at the coastal line of sea view, which would change the face of Karachi and become a tourists’ attraction.
While expressing keenness to strengthen trade and investment ties between the business communities of the two countries, Turkish CG assured that the commercial section of Turkish Consulate in Karachi was ready to fully assist Karachi’s business & industrial community intending to improve trade and investment ties with their Turkish counterparts.
To deal with trade-related conflicts and protect the interest of customers, he suggested to form a private-to-private sector committee between the two countries
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Industry rejects shutting down gas supply decision
KARACHI: Trade and industry on Monday strongly rejected the government decision of discontinuing gas supply for export and manufacturing sectors.
The industry will face the ever severe situation in the wake of discontinuation of gas supply to captive power generation for general industry from February 01 and the export-oriented sectors from March 01, 2021 leaving severe impact on the economy and exports of Pakistan.
This was stated by Mian Nasser Hyatt Maggo, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) addressing a Press Conference.
The President FPCCI also accompanied by President Karachi Chamber of Commerce and Industry Shariq Vohra and other business leaders.
All the business leaders vehemently rejected the cabinet decision and appealed Prime Minister to revisit this decision in the best interest of the survival of industry and for enhancement of Pakistan’s export and creating employment in the country.
He further went on saying that industry is already confronted with many challenges particularly with respect to procurement of long term orders for the exports.
However, the Pakistan’s exports when witnessing a growth this decision has badly affected confidence of foreign buyers and asking for completion of their orders and it is apprehended the export orders are likely to shift elsewhere to the other competing countries.
He also quoted that Pakistan utility tariff is comparatively very high than the other regional countries.
He further said that transferring electricity from captive power to grid will take time and costly not feasible as the cost of electricity generated by our captive powers is lower than the cost involved in shifting to grid.
Most of the industries were running on natural gas using boilers and regeneration system so it was impossible to be converted on the grid and change the whole appliances within one month.
Mian Nasser Hyatt Maggo stated that the decision of Cabinet Committee on Energy (CCOE) appears to have been taken on non-professional advice and without consultation of main stakeholders that is businessmen and apex bodies. He further said that this decision will not only harm the economy of Pakistan but will also damage our image with international buyers which seem a conspiracy against the progress made by Pakistan in the last two years by the present government.
While addressing the press conference, Shariq Vohra, President KCCI showed surprise on the decision and stated that they would not allowed K-electric sabotage Karachi’s progress and development and both representative from Karachi Chamber strongly emphasized that government should not take such decisions that create labor unrest due to closures of factories.
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Business demands to withdraw power tariff hike, shutting down captive power plants
KARACHI: Business community has demanded Prime Minister Imran Khan to withdraw the decision to increase in power tariff hike and shutting down the captive power plants because such decision would sabotage efforts of the government to enhance the exports.
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KCCI, Jazz sign deal for 35 percent to businessmen
In a significant move to benefit the local business community, the Karachi Chamber of Commerce & Industry (KCCI) and Jazz, Pakistan’s leading 4G operator and top internet and broadband service provider, have announced the signing of a Memorandum of Understanding (MoU). The agreement, formalized on Saturday, aims to provide substantial discounts on Jazz’s services to KCCI members.
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FPCCI resents electricity tariff hike, gas supply shortage
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has resented increase in electricity tariff and supply shortage of gas to industry.
Mian Nasser Hyatt Maggo, President FPCCI in a statement on Friday expressed concerns over electricity tariff hike and disconnection of gas for the industry.
He said that instead of reforming the energy sector, the adhoc and painful decisions are being made detriment to domestic industry.
He said that the much awaited outcome of negotiations between IPPs and government which was considered to be directed towards reduction in base tariff do not assures any decrease in the base tariff, which again is shocking outcome questionable as the private sector was of the view that the report published on IPPs which was required to be further expanded towards the eventual objectives of resulting in the reduced cost of energy for increasing the competitiveness of economy and mitigating the inflationary trapped and consumption requirement of the poor segment of the economy.
He said that the spokesman on the energy has attributed the need of tariff hike due to bad and corrupt agreements made with IPPs in the past. He said that if so, such situation requires to be corrected through invoking all the civil and criminal remedies to correct the agreements by excluding the pay or take, reducing O&M cost, converting the repatriation cost from dollar indexation to rupee and relevant recommended measures in the report.
He said that while appreciating the present government in ordering the inquiry in respect of agreement with IPPs, the outcome does not appear to be reciprocating for base tariff reduction and availability of electricity sale at reduced cost.
He further said that the announcement of Rs40 billion per year off-take of financial burden on Government is marginal even against the present announced tariff base hike wherein one rupee hike is over charging consumers of Rs 100 billion on consumption of electricity.
President FPCCI also said that such on & off increase in tariff is coming in the way of economic development, in specific loaded by the carried forward adverse effect of COVID-19.
The hike if is linked to any part of the memorandum of understanding with IMF can be fairly convinced for freezing such tariff hike when IMF itself projected low economic growth. Such duplicity cannot be justified.
On the other side the predictable outward and inward oriented trade has become hostage of keep on increasing gas prices and intending to disconnect the gas supply of captive power plants.
He said that mismanaged RLNG cargoes by the Petroleum Division are also answerable to such abrupt and non-justified late decisions. He said that during last November the spokesman on energy and petroleum had promised that increasing demand of gas in the winter season will be met through increase in RLNG imports.
It appears that this non-living promise has forced Government to take decision of disconnecting the gas for captive power of industry. The setting of the deadline for disconnection of gas from February 1, 2021and 1st March 2021 is too short time to adjust.
He said that some industry is running on captive powers with some emergency required grid loads need more time to arrange all the equipment’s and settle all the requirements of Discos which would take considerable time.
He said that even CPP’s of industry with equivalent power arrangement from Grid also requires back-up adjustments of power by the Discos which is again time consuming.
Mian Nasser Hyatt Maggo, President FPCCI proposed that the time period provided be extended reasonably in order to shift to Grid power. He said that the penalty of bad agreements with IPPs on capacity and take or pay clauses is being shifted to industry with their self-generation through captive power plants which basically is assurance for reliability and un-interrupted supply.
Discos have yet to claim such performance to supply un-interrupted electricity without load shedding. He said that government spokesman has claimed saving of 150 MMCFD gas by disconnecting CPPs of industry, while the gas leakages in the systems are four times of this saving of 150 MMCD.
He wondered that if there is any efficiency in the management over sighting the political economy of the gas affairs.
He further suggested that even if the government reduces gas loss by one-fourth, the abrupt imposition of such decision may not have been required to adversely affect the industrial economy.
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Yarn merchants demand duty, tax incentives for cost reduction
KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded incentives in rates of duty and taxes in order to reduce the cost of production, according to a statement issued on Thursday.
The issues were raised at a meeting of yarn merchants with Member Inland Revenue (Operations) Federal Board of Revenue (FBR) held last week.
The office bearers of Pakistan Yarn Merchants Association (PYMA) demanded the Member of abolishing 3 percent value added tax on commercial importers at import stage, impose uniform Withholding tax for industrial & commercial importers, and abolish regulatory duty, additional customs duty on polyester filament yarns, and reduction of tax rate on POY.
Member Inland Revenue was informed that the 3 percent value addition sales tax at import stage is quite unreasonable on the import of raw materials because it is impossible to sell a commodity like yarn at gross profit margin of 17–18 percent. Their margin is ranging between 2 to 5 percent and this tax is un-necessary burden. It must be withdrawn or at least reduced to 1 percent.
They insist for rationalization of withholding tax regime at import stage on all kind of imports for commercial & industrial importers (1 percent for capital goods, 2 percent for raw materials and 5.5 percent on finished goods) i.e. 1 percent.
Imposition of 2.5pc regulatory duty on polyester filament yarn (5402-3300, 5402-4700), POY (5402-4600) & air covered yarn (5402-6200) is unjustified as PFY is an important raw material for weaving, knitting & home textile.
“It would justify the cascading system of polyester value chain. This is essential to provide protection to upstream & downstream participants of cascading system of polyester value chain & if implemented successfully, will result in massive employment & investment opportunities”, PYMA delegation added.
It encourages fake invoices resulting in revenue losses to government, when goods are sold to unregistered buyers. We believe this tax is counterproductive & more creative approach is required to achieve the goal of documentation.
On one hand, it deprives the payment of an un-adjustable 17 percent direct payment on sales to un-registered persons, and on other hand loss of precious revenue of the government exchequer occurs.
PYMA delegation pointed out anomaly in rate of turn over tax on yarn. Traders of yarn deal in high volume & nominal rate of profit margin. They purchase yarn from spinners & sell to weaving sector with a nominal margin of 1pc or even less.
As per SRO – 333(1)/2001 Dated. 02.05.2011, the yarn traders are subject to turn over tax at concessional rate of 0.1 percent which constitute about 10pc of their margin.
Therefore, FBR should remove the anomaly by insertion of the provision of minimum turnover tax at 0.1pc for yarn traders in the first schedule part–I, Division–IX.
On the occasion, Dr. Muhammad Ashfaq Ahmed, member (Inland Revenue – Operations) Federal Board of Revenue, assured the delegation that the agenda presented by PYMA would consider and would also inform the Ministry of Commerce & Ministry of Finance to include it in the upcoming budget.
FBR official also assured the delegation of his fullest cooperation with the aim of promoting business activities in the country and increasing government revenue.