KARACHI: All Pakistan Textile Mills Association (APTMA) on Tuesday demanded the government of restoring zero-rate sales tax and reducing interest rate to five percent in order to help the industry and ensure jobs.
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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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PCDMA urges FBR to withdraw notices amid coronavirus lockdown
KARACHI: Commercial importers have resented to the notices sent by Federal Board of Revenue (FBR) despite realizing severe economic crisis amid lockdown in the country to control spread of coronavirus.
Pakistan Chemicals & Dyes Merchants Association (PCDMA) chairman and former director Karachi Stock Exchange Amin Yousuf Balgamwala in a statement on Monday demanded to waive all notices including income tax, sales tax, WHT and all proceeding in this regard for two months due to the worst economic crisis, as due to coronavirus pandemic, all the business activities have stopped and commercial importers are already facing huge financial crises.
Balgamwala said we are surprised on receiving FBR notices, as whole country is lockdown for prevention of coronavirus pandemic, so chairman FBR to issue directives to chief commissioner and all RTOs to stop harassment to commercial importers, so that import activities could be restored after the lockdown period.
“If wheel of trade and industry will continue to rotate, will create more opportunities for employment as the country develops,” he said
PCDMA chairman further said that if all notices including income tax, sales tax, WHT and other proceeding not stopped for at least 2 months then the textile industry will be badly affected which is the backbone of the domestic economy as commercial importers are the largest means of providing raw materials to the textile industry to continue production activities.
Amin Yusuf Balgamwala also demanded to defer the condition of the CNIC on the sale of goods to unregistered persons for six months so that the business community, especially small traders should be protected from destruction.
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FBR urged to defer CNIC condition for six months
KARACHI: Business community has urged Federal Board of Revenue (FBR) to defer CNIC condition on purchases above Rs50,000 for at least six months.
In a statement Saquib Fayyaz Magoon, Convener of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) standing committee on Sales Tax and Chairman Indenters Association of Pakistan (IAOP), urged Government to pay attention on economic crises due to lockdown for prevention of coronavirus pandemic and has demanded Prime Minister to defer CNIC Condition for 6 months on sale of goods to unregistered persons in view of the current economic crisis.
Magoon Said due to situation caused by the coronavirus, all payments to exporters have been stopped and export orders canceled while the economic activities have also stopped. While there has been a severe crisis of cash flow in the market, therefore, by defer the condition of the CNIC will improve the cash flow situation, otherwise there will be another major financial crisis.
He also requested the government to accept sales tax returns without CNIC and said that in the current economic crisis, now we will depend largely on the local consumer industry, who are already in crisis due to the CNIC condition.
Prime Ministers adviser on commerce Abdul Razzaq Dawood in which he assured that cash flow would not be affected by the Coronavirus.
So if he wants the cash flow not affected then CNIC Condition must defer for minimum six months so that business activities can be restored as usual.
Magoon pointed to the difficulties facing the businessman community over the ban on courier companies due to the lockdown, said the original document of import shipment could not be reached in the banks.
So as long as the lockdown is in place, the State Bank should issue clear instructions to the banks that the EIF be approved on the copy of the document to ensure uninterrupted clearance of imported goods. Because the original documents are required for EIF approval.
Due to not being provided original documents is causing constraints and importers are not able to file a GD which is causing consignment storage and shed charges.
Saquib Fayyaz Magoon appealed the Prime Minister Imran Khan that in view of the serious situation caused by the coronavirus, a directive should be issued to the State Bank that the EIF be approved on the copy of the document at the time of payment by the importers to the banks.
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Business community welcomes PM relief package
KARACHI: Business community has welcomed the relief package of around Rs1.2 trillion announced by Prime Minister Imran Khan to ward off the negative impact of coronavirus.
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Karachi Chamber announces shut down amid coronavirus spread
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has announced shut down its offices for a week due to outbreak of coronavirus and rising number of infected persons in Karachi.
Keeping in view the outbreak of coronavirus and rising number of cases in Karachi, Chairman Businessmen Group Siraj Kassam Teli, Office Bearers and Managing Committee members of the Karachi Chamber of Commerce and Industry (KCCI) have decided to shut down KCCI for one week hence all departments of the Chamber will remain closed from March 24th to March 29th as a precautionary measure to save the public and staff from the life-threatening disease caused by coronavirus.
KCCI will reopen on March 30th, 2020, Monday, with normal office timings, said a press release issued here on Saturday.
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KCCI for more stringent measures to fight coronavirus epidemic
The Karachi Chamber of Commerce and Industry (KCCI) has called upon the government to implement stricter measures in the battle against the coronavirus epidemic. Agha Shahab Ahmed Khan, President of KCCI, emphasized the need for enhanced efforts to combat the threat posed by COVID-19, urging both the government and the public to remain vigilant and proactive in containing the spread of the virus.
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FPCCI calls for strategy to save national economy amid global meltdown on coronavirus epidemic
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex trade body of the country, has urged the government to outline strategy to save national economy in the wake of global meltdown on coronavirus epidemic.
FPCCI president Mian Anjum Nisar in a statement on Saturday urged the government to take preventive measures and develop strategy to protect the pace of economic and trade progress of Pakistan from likely impacts of world economic slowdown apprehended by leading think tanks due to the recent global spread of the novel coronavirus.
Globally, more than 145,682 people have been diagnosed with coronavirus. The death toll above 5436, in China death toll 3173, South Korea, mass testing has turned up over 6,000 cases and more than 60 deaths.
Italy has confirmed more than 17660 cases, along with more than 1200 deaths. Iran has announced 514 deaths and 11364 cases. The United States confirmed 41 deaths from the outbreak, along with more than 1264 confirmed cases.
Mian Anjum Nisar said that in order to safe national economic system from the impacts of slowdown of world economy due to coronavirus and other global economic challenges government should announce economic relief package to protect trade and industry of the country. He informed that the Europe is now the “epicentre” of the global coronavirus pandemic.
The Europe Union (EU) is the second biggest trading partner of Pakistan where around 20 percent of Pakistani exports have duty-free access to the Europe, while 70 percent avails preferential treatment.
FPCCI under the current scenario has organized a consultative session seeking feeding back from the stake holders on likely impact of this coronavirus on Pakistan’s foreign trade.
The session was attended by Dy. Governor SBP Dr. Murtaza Syed, Dr. S.M. Qaiser Sajjad Secretary General, Dr. Samreen Sarfarz Pakistan Medical Association, Dr. Adil H. Haider Dean Aga Khan Medical University, Dr. Ijaz, health department of Sindh Government, Aga Fakhar Hussain Additional Secretary Industry & Commerce Sindh, Dr. Saeed SINA Welfare Trust, Prof. Dr. Zarna Wahid, Dow University of Health Sciences, Pakistan National Shipping Corportation and KPT. The session was chaired by Sheikh Sultan Rehman Vice President FPCCI.
The chief of the apex trade body also informed that the US Congress has voted for a US $ 50 billion emergency funding package to fight the coronavirus. Several central banks around the world, including the U.S. Federal Reserve, have lowered interest rates to support their economies amid the coronavirus outbreak. Lowering interest rates make borrowing costs cheaper and could encourage business to take loans and spend which will in turn stimulate the economy. He further stated that the IMF is making available US $ 50 billion in emergency funding to help poor and middle-income countries.
Mian Anjum Nisar President FPCCI emphasized that as the inflationary trend shows declining that support to reduce interest rates while on the other hand to boost and safe economic activity all segment of economy needs to be supported and facilitated to contribute in economic growth.
Other- wise we will again face economic crises, lower industrial growth and shifting of industrial units in sick industry. Government should also reduce the cost of doing business and encourage the domestic & foreign investors to make investment in country at this critical time when the global economy is shrinking.
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Central banks lowering rates in response to coronavirus threat
KARACHI: Central banks of the world are responding to negative impact of coronavirus impact and they are reducing interest rate, said a top official of the State Bank of Pakistan (SBP).
Syed Murtuza, Deputy Governor, SBP while addressing at a seminar on impact of coronavirus on economy organized by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday.
The deputy governor said that due to deterioration in economy the central banks of many countries had reduced interest rates. He said that after Federal Reserve of the US the central banks of UK, Canada and Australia had also brought down the discount rates.
Murtuza Sayed said that the spread of coronavirus disease (COVID-19) was different with every changing day.
The cases in China are now on decline and situation is improving.
He hoped that the bad situation would be improved by May this year. However, this epidemic may cause difficult economic situation for at least one quarter, he added.
He said that according to the IMF the coronavirus would cause decline in world economic growth in 2020.
He said that there was opportunity for Pakistan to improve exports in this situation. However, he said that Pakistan economy may have repercussions of world economic slowdown.
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Engro Polymer stops production activities on SEPA notice
KARACHI: The production activities have been stopped at plant of Engro Polymer and Chemicals located at Port Muhammad Bin Qasim, said a statement on Monday.
The production activities have been stopped after Sindh Environment Protection Agency (SEPA) took notice of gas leakage incident at the plant.
The company in a notification informed the stock market: “In relation to isolated incident reported to Pakistan Stock Exchange on March 06, 2020, Engro Polymer and Chemicals Limited (ECPL) has received a notice under Section 21(2) of Sindh Environment Protection Act, 2014 from the Enviornmental Protection Agency Government of Sindh. The notice has directed EPCL to stop all production activities at the plant and fixed a hearing on March 10. In compliance with the notice, all production activities are on hold at the plant.”
Earlier on Friday March 6, 2020 the incident was reported at Engro Polymer and Chemcial.
In a statement the company said that it was gathering complete details related to the incident.“Based on initial reports, some people have been shifted to a nearby medical facility for treatment of vomiting/nausea condition,” it said.
The company’s staff is accompanying these people to ensure that they receive adequate medical treatment, it said. “No injuries or fatalities have been reported,” the company added.
It further said that specific areas of the plant have been taken offline as a precautionary measure, and the company will conduct a complete and thorough investigation into the incident and will keep the stock exchange informed with any material developments in the matter.
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Dealers demand reviewing policy for used cars import
KARACHI: Car dealers have said that due to restrictions on import of used vehicles the business of car sales has suffered terribly and many showroom owners have shut down their businesses.
Chairman of Automotive Traders & Importers Association Karachi (ATIAK) Muhammad Kamran Khan and President ATIAK Ch. Aamir Ali Khan have requested the Karachi Chamber of Commerce & Industry (KCCI) to support the car dealers.
They said that due to severe curbs imposed on the imports of used cars particularly the amendment in the Import Policy Order 2016 in which clearance of cars through foreign exchange has been made mandatory, the car sale business has suffered terribly and dozens of car dealers in various localities have shut down their businesses.
They also sought help of the KCCI in getting their parking issue resolved as not a single vehicle belonging either to showroom owners or walk-in customers was being allowed to get parked outside any showroom which terribly affects their businesses.
Chairman ATIAK Muhammad Kamran Khan pointed out that the situation has created a lot of problems not only for the car dealers but also for many other allied businesses including the denting and painting workshops and mechanics etc., rendering thousands of people jobless.
Chairman ATIAK stated that the importers of used cars pay billions of rupees each other in shape of taxes and custom duties but the restrictions on imported cars have brought many businesses on the verge of complete collapse whereas the government was also losing billions of rupees being generated through custom duties and registration of imported vehicles.
“The entire strategy needs to be reviewed and relief has to be provided hence, KCCI, being the premier trade body, must come forward to help out and save car dealers”, he added.
Speaking at a meeting during the visit of ATIAK delegation to KCCI, Chairman and President ATIAK said that relocating showrooms outside Karachi was not a feasible option as not a single customer will come all the way out of city beyond Sohrab Goth to buy cars mainly due to security concerns hence, the relevant authorities will have to come up with some other feasible option in which relief has to be ensured for perturbed showroom owners.
Earlier President KCCI Agha Shahab Ahmed Khan, while welcoming the ATIAK delegation, said that under Businessmen Group’s policy of Public Service, the Karachi Chamber has not only been serving the entire business & industrial community without any discrimination but also all other citizens of Karachi who have been facing hardships and climb the Chamber’s stairs to seek assistance.
He assured the ATIAK delegation members of KCCI’s full support and cooperation so that numerous issues being faced by the car importers and dealers could be resolved as per aspiration of the stakeholders. “We are available for any kind of assistance 24/7 to the entire business and industrial community of Karachi without any discrimination of cast, creed, color or even size of the business”, he added.
Referring to concerns by ATIAK delegates over parking issue, Agha Shahab Ahmed assured that DIG Traffic will be invited so that the parking issue being faced by car dealers could be particularly discussed and resolved.
He was of the view that instead of imposing parking restrictions and creating other problems for showroom owners, the authorities should devise some kind of an effective strategy and come up with a permanent solution in consultation with all stakeholders as the car dealers also contribute billions of rupees every year to the national exchequer in shape of taxes and duties hence, they must get an enabling business environment in return.
Speaking on the occasion, Chairman KCCI’s Special Committee for Small Traders Majeed Memon advised the ATIAK delegates to maintain close liaison with Karachi Chamber, become members of numerous subcommittees and participate in subcommittees’ meetings in order to actively highlight and bring issues to KCCI’s notice so that the same could timely be taken up with relevant authorities and amicably resolved.