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  • Gold rate hits all time high at Rs82,000

    Gold rate hits all time high at Rs82,000

    KARACHI: The price of gold has reached to all time high at Rs82,000 per Tola in the local market, traders said on Thursday.

    The traders said that the price of one tola gold increased by Rs1700 to reach all time high of Rs82,000. One toal is measured at 1 kilogram is equal to 80 tola.

    The price of gold for 10 grams also increased by Rs1458 to reach at Rs70,302, according to Sarafa Bazar Karachi.

    The traders attributed the hike in price to increase in international price of bullion. In international market the gold increased by $24 to reach at $1420 per ounce.

    The traders said that in the local market people were investing in the gold due to strict monitoring of foreign currency and dull activity in stock market.

  • FBR meeting on July 12 to speed up action against Benami properties

    FBR meeting on July 12 to speed up action against Benami properties

    ISLAMABAD: In order to speed up action against Benami properties an important meeting is scheduled for July 12 (Friday) at Headquarter of Federal Board of Revenue (FBR).

    The meeting will presided over by Syed Shabbar Zaidi, Chairman, FBR and all the relevant officers of Benami Zones will attend the meeting.

    An office order circulated to the three Benami Zones, said that the phenomenon of Benami property was one of the major socio-economic malaise afflicting the national development, equitable distribution of resources and overall governance in the country.

    “In order to combat this menace the federal government has recently activated specialized Benami Zones at Karachi, Lahore and Islamabad, constituted various enforcement and adjudication authorities and promulgated rules for effective implementation of the Benami Property (Prohibition) Act, 2017.”

    The office order further said that to have initial introduction and orientation, develop understanding of the legal framework, appreciate roles and responsibilities and share knowledge on the subject for impartial, judicious and expeditious implementation of the Benami Transactions (Prohibition) Act, 2017 a meeting of all stakeholders had been scheduled on Friday July 12, 2019 at FBR HQs Islamabad.

    The officers, who will attend the meeting included: Commissioners Inland Revenue as approving authority of the three Benami Zones.

    Deputy Commissioners as initiating officers and Assistant Commissioners as administrators under Benami laws will also attend the meeting.

  • KSE-100 gains 35 points amid low volumes

    KSE-100 gains 35 points amid low volumes

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 35 points on Thursday to close at 33,875 points as against previous day’s 33,840 points.

    Analysts at Arif Habib Limited said that KSE-100 index has been on a losing streak with continuous slide in both volume and index level.

    Yesterday, the volumes reached an 8-yr low of 40 million, and today marked yet another low of 39.5 million shares. Cement sector led the volumes table with 5.4 million, followed by Engineering (5.1 million) and Chemical (3.7 million).

    Scrip wise activity shows DSL ranking top again with 4.4 million, followed by MLCF (2.7 million) and HUBC (2.2 million).

    Recent ouster of HUBC from Islamic indices is followed by an increase in trading volumes of HUBC. Market on close showed improvement in points table that resulted in index closing with +35 points.

    Sectors contributing to the performance include Banks (+42 points), Fertilizer (+15 points), O&GMC (+10 points), E&P (+9 points), Sugar (+2ts).

    Volumes decreased by 3 percent DoD to reach 39.5 million as against 40.6 million. Average traded value also decreased by 12.2 percent to reach US$ 9.1 million as against US$ 10.3 million.

    Stocks that contributed significantly to the volumes include DSL, MLCF, HUBC, LOTCHEM and TPL, which formed 34 percent of total volumes.

    Stocks that contributed positively include HBL (+33 points), ENGRO (+16 points), UBL (+14 points), POL (+9 points) and MCB (+8 points).

    Stocks that contributed negatively include MARI (-7 points), NATF (-5 points), MEBL (-5 points), INDU (-4 points) and HMB (-4 points).

  • Rupee depreciates by 61 paisas in interbank

    Rupee depreciates by 61 paisas in interbank

    KARACHI: The Pak Rupee ended down by 61 paisas on Thursday owing to demand for import and corporate payments.

    The rupee closed at Rs158.49 to the dollar as compared with previous day’s closing of Rs157.88 in interbank foreign exchange market.

    The foreign currency market was initiated at Rs158.40 and Rs158.70 in interbank foreign exchange market.

    The market recorded day high of Rs158.60 and low of Rs158.20 and closed at Rs158.47.

    The exchange rate in open market also witnessed depreciation in rupee value. The buying and selling of dollar was recorded at Rs158.50/Rs159.50 from previous day’s closing of Rs157.50/Rs158.50 in cash ready market.

  • Preventive officer awarded dismissal from service for misconduct

    Preventive officer awarded dismissal from service for misconduct

    ISLAMABAD: Federal Board of Revenue (FBR) has awarded major penalty of ‘dismissal from service’ upon Hassan Ashraf, preventive officer, posted at Model Customs Collectorate of Preventive, Karachi on the charges of misconduct.

    In a notification issued on Thursday the FBR said that Hassan Ashraf was appointed as Preventive Officer (BS-16) in the Model Customs Collectorate of Preventive, Karachi and he joined his duties in the Collectorate on March 07, 2018.

    According to terms and conditions of his appointment he was deputed for mandatory physical training scheduled from March 24, 2018 at Shaheed Benazir Bhutto Elite Police Training Centre, Razzakabad, Karachi.

    However, he did not join the training and thereafter he is continuously absent from duty.

    The above omissions / commission on part of the accused officer is tantamount to “misconduct” under rule 3(b) of the Government Servants (E&D) Rules, 1973.

    Several notices/Memo/Letters were issued to him to explain the reason of his un-authorized absence from mandatory training and duty but he did not respond at all.

    Therefore, the Collector, Model Customs Collectorate (Preventive), Karachi in his capacity as Authorized Officer served Show Cause Notice dated 16.11.2018 upon the accused officer.

    However, the accused neither submitted his written defence reply to the Authorized Officer nor appeared for personal hearing before the Authorized Officer. Therefore he failed to defend himself against the charges of “Misconduct” on his part.

    The Member (Admn)/ Authority, on the recommendations of Authorized Officer has therefore, imposed the major penalty of “Dismissal from Service” upon the accused Hassan Ashraf, Preventive Officer under Rule 4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973 with immediate effect.

    He shall have the right of Appeal as admissible in the Civil Servants (Appeal) Rules, 1977.

  • FBR probes concealment in land, immovable property purchases

    FBR probes concealment in land, immovable property purchases

    ISLAMABAD: Federal Board of Revenue (FBR) has obtained data of land and immovable property transactions from provincial registrar offices and started proceedings against those who concealed the actual amount to purchase the assets.

    FBR sources said that the data had been obtained on the basis of withholding tax deduction by the property registrars. The sources said that the FBR was probing the lower values declared by the purchasers against the fair market values.

    The FBR is also probing those people who have such immovable properties where filing of income tax returns is mandatory.

    As per Section 114 of Income Tax Ordinance, 2001 following persons are required to annual income tax returns:

    — owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    — owns immovable property with a land area of five hundred square yards or more located in a rating area;

    — owns a flat having covered area of two thousand square feet or more located in a rating area.

    The sources said the FBR has been allowed to investigate transactions of past six years.

    The sources said that the FBR through Finance Act, 2018 notified Directorate General of Immovable Property for determination of fair market values and authorized this directorate with immense powers.

    The Directorate-General may, subject to the provisions and conditions as may be prescribed, initiate proceedings for the acquisition of property for the reasons to believe that any immovable property of a fair market value has been transferred by a person, hereinafter referred to as the transferor, to another person, hereinafter referred to as the transferee, for a consideration which is less than the fair market value of the immovable property and that the consideration for such transfer as agreed to between the transferor and transferee has been understated in the instrument of transfer for the purposes of ─

    (a) the avoidance or reduction of withholding tax obligations under this Ordinance;

    (b) concealment of unexplained amount referred to in sub- section (1) of section 111 representing investment in immovable property; or

    (c) avoidance or reduction of capital gains tax under section 37.

    The sources said that the FBR had extended the filing of income tax returns for tax year 2018 up to August 2, 2019 to facilitate persons to file their returns, especially in those cases where immovable properties had been purchased but not declared.

  • FBR proposes reducing retaining period of imported plant, machinery by export units for disposal at zero percent duty, taxes

    FBR proposes reducing retaining period of imported plant, machinery by export units for disposal at zero percent duty, taxes

    ISLAMABAD: Federal Board of Revenue (FBR) has proposed to relax the condition of disposal of plant and machinery by export units at zero percent of duty and taxes to five years as compared with prevailing 10 years.

    The FBR on Wednesday issued SRO 747(I)/2019 to proposed amendments in the Export Oriented Units and Small and Medium Enterprises Rules, 2008.

    Through proposed amendment the FBR allowed the retaining imported goods including plant and machinery for a maximum period of five years as against prevailing ten years.

    The FBR through SRO 327(I)/2008 notified “The Export Oriented Units and Small and Medium Enterprises Rules, 2008” to facilitate the exporters and promote the exports.

    The FBR proposed that there will be no duty or tax if items imported by export oriented unit is sold or otherwise disposed of after five years from the date of importation. The existing retaining period is ten years.

    The FBR proposed that there will be full duty and tax if sold or otherwise disposed of before the expiration of three years from the date of importation. The existing period of attracting full duty and taxes is five years.

    It is proposed that there will be 75 percent duty and taxes if sold or otherwise disposed of after three and before four years from the date of importation. The existing period for this category is ‘after five and before seven and half years’ from the date of importation.

    The FBR also proposed to impose 50 percent of duty and taxes if sold or otherwise disposed of after four and before five years from the date of importation. The existing time period for this category is ‘after seven and half years and before ten years.’

    In the latest SRO the FBR also proposed to amend the word ‘Collector’ with the Regulatory Authority. The FBR also defined the regulatory authority is the additional collector of customs designated by the collector of customs as the regulatory authority in relation to an export oriented unit, in whose jurisdiction the place of business or manufacturing unit of the export oriented unit applicant, duly registered under the Sales Tax Act, 1990, is situated.

  • FBR directs customs to ensure retail price print on imported goods

    FBR directs customs to ensure retail price print on imported goods

    KARACHI: Federal Board of Revenue (FBR) has directed customs authorities to ensure printing of retail prices on imported goods for collection of sales tax while clearance of consignments.

    The Inland Revenue Policy Wing issued directives on Wednesday to Inland Revenue and Customs for the implementation of changes brought in to Sales Tax Act, 1990 through Finance Act, 2019.

    It said that the locally manufactured goods specified in Third Schedule are already chargeable to sales tax on the basis of retail price.

    Now, through amendment in section 3(2)(a) of Sales Tax Act, 1990, retail price taxation has also been made applicable to imported goods.

    The importers are required to print the retail price in the manner prescribed in the aforesaid clause and such goods shall be assessed on the basis of declared retail price and not on the basis of customs value under section 25 of the Customs Act, 1969.

    “All Model Customs Collectorates (MCCs) are requested to ensure that the declared retail prices are duly printed in the prescribed manner and that the sales tax is charged on the basis of such declared retail price,” the FBR said.

    Twelve new serial numbers have been added to Third Schedule through Finance Act, 2019 such as electric and gas appliances, motorcycles, auto-rickshaws biscuits, tiles etc.

    The FBR directed Large Taxpayers Units (LTUs) / Regional Tax Offices (RTOs) / MCCs should ensure application accordingly.

    The FBR defined the value of supply, which has been amended to provide for application of retail price taxation to imported goods, and also to incorporate provisions from rescinded rules and STGOs.

    These modifications are enumerated below:

    Amendment in clause (d) to exclude imported Third Schedule items from purview of application of ‘customs value’ determined under section 25 of the Customs Act, 1969. These items are to be assessed on the basis of declared retail price. Further such price is also required to be printed on imported goods as stipulated in clause (a) of section 3(2) of the Sales Tax Act, 1990.

    (ii) Substitution of clause (f) in section 2(46) pertains to value of supply in case of toll manufacturing, which has defined to be the charges received in lieu of value addition carried out on goods;

    (iii) Newly added clause (h) defines value to be energy purchase price in case of supply by IPPs; and

    (iv) Another new clause (i) transposes the provisions relating to exclusion of late payment surcharge from value, in case of supply of electricity and gas by the distribution companies, from the rescinded Sales Tax Special Procedures Rules, 2007.

  • No compromise on documentation; PM refuses to withdraw CNIC condition

    No compromise on documentation; PM refuses to withdraw CNIC condition

    KARACHI: Prime Minister Imran Khan on Wednesday showed firm resolve to document the economy and flatly refused demands of business community to withdraw condition of CNIC on sales above Rs50,000.

    Representatives of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) met the prime minister at the Governor House. The entire prime minister’s team of finance and commerce was also present at the meeting.

    The business community urged the prime minister to withdraw the condition of CNIC at the time of sales, which was introduced through Finance Act, 2019.

    Sources said that the Prime Minister had refused the demand and told the business community that the businesses had to be documented. The prime minister said requirement of CNIC / information on above Rs50,000 sales was quite justified.

    The prime minister said that he wanted to see Pakistan grow on Turkish model. He further said that the government wanted to take along the business community on journey to growth.

    Prime Minister Imran Khan told the business community that he had arrived Karachi to resolve problems of trade and industry. He said that the government wanted to ease in doing business.

    Our priority to eradicate poverty and accelerate economic growth, he added.

    After the meeting business community has expressed disappointment.

    Mirza Ikhtiar Baig, senior FPCCI leader, while talking to media said that the apex body had presented all the problems at the meeting that are hampering the economic growth.

    The prime minister has been informed about protests by small associations. He said that the FPCCI had urged the prime minister to restore zero rated for export sector.

    He said that the interest rate by State Bank was on the rise and it would make difficult for industry to continue the production activities. On the other hand the FBR had also not withdrawn several levies on the export sector.

    The prime minister has been informed that reforms should bring in phases.

    Another meeting was held with export sector in which the prime minister listened to their problems. However, the export sector was also not happy to resolve their issues at the meeting.

  • Foreign remittances grow by 9.68pc to $21.84bn in 2018/2019

    Foreign remittances grow by 9.68pc to $21.84bn in 2018/2019

    Foreign remittances to Pakistan have surged by an impressive 9.68% during the fiscal year 2018/2019, reaching an unprecedented high of $21.84 billion.

    (more…)