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  • Banks assure providing details of Benami account holders to FBR

    Banks assure providing details of Benami account holders to FBR

    ISLAMABAD: The commercial banks have assured the Federal Board of Revenue (FBR) of providing details of Benami account holders for the purpose of broadening of tax base and documentation of economy.

    An important meeting was held on Thursday of all chief financial officers with Syed Muhammad Shabbar Zaidi, chairman, FBR.

    The CFOs of all commercial banks assured complete cooperation to the FBR chairman in providing details of account holders in order to broaden the tax base.

    The participants of commercial banks included Chief Financial Officers of Allied Bank, United Bank, Habib Bank and others.

    They assured their full cooperation to the Chairman FBR and welcomed his appointment as Chairman FBR.

    The Chairman FBR thanked the Chief Financial Officers.

    FBR sources said that the meeting was important related to next review of Financial Action Task Force (FATF) on Pakistan.

    It is learnt that huge amount of money laundering was done through Benami bank accounts besides those were also used for tax evasion.

    The FBR chairman has already made it clear that the current amnesty scheme is the last opportunity for people having undeclared income and assets.

  • Foreign exchange reserves slipped to $15.09 billion

    Foreign exchange reserves slipped to $15.09 billion

    KARACHI: The foreign exchange reserves of the country have slipped by $36 million to $15.09 billion by week ended May 24, 2019 as compared with $15.126 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The official reserves of the central bank came down by $47 million to $8.01 billion by week ended May 24, 2019 as compared with $8.057 billion a week ago. The SBP attributed the decline in foreign exchange reserves of the central bank to external debt services and other official payments.

    However, the reserves held by commercial banks increased by $11 million to $7.079 billion when compared with $7.068 billion a week ago.

  • Stock market makes nominal gain amid selling pressure

    Stock market makes nominal gain amid selling pressure

    KARACHI: The stock market ended flat on Thursday after witnessed high band trading during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 35,974 points as against 35,959 points showing an increase of 15 points.

    Market carried with the momentum showed yesterday and opened on a positive note today with +259 points and 3M shares traded on the opening bell.

    During the session, the index went up by 577 points however, selling pressure brought the market down to -304 points at a point in time again.

    The main cause of concern was again Market Support Fund, where rumours kept circulating that it has not yet been approved, despite clarity given by SECP Chairman and Advisor to Finance Ministry.

    By the end of session, ECC’s approval of EMOF and SEF (Enterprise Funds) brought some confidence back to the investors, however, market did not recover the eroded points.

    Banking sector led the volumes table with 40M shares, followed by Cement sector (38M). BOP contributed more than half the traded volumes in Banking Sector, whereas MLCF led the Cement Sector with 14M shares.

    Sectors contributing to the performance include Banks (+69 points), O&GMCs (+59 points), Autos (+19 points), Fertilizer (-68 points), Power (-38 points), Textile (-27 points), Cement (-23 points).

    Volumes increased from 182.5mn shares to 199.1mn shares (+9 percent DoD). Average traded value also increased by 17 percent to reach US$ 59.7mn as against US$ 51.1mn.

    Stocks that contributed significantly to the volumes include BOP, MLCF, UNITY, KEL and SNGP, which formed 38 percent of total volumes.

    Stocks that contributed positively include BAHL (+31 points), PSO (+23 points), UBL (+22 points), SNGP (+20 points) and NESTLE (+14 points). Stocks that contributed negatively include FFC (-35 points), HUBC (-32 points), ENGRO (-26 points), NML (-19 points) and OGDC (-15 points).

  • Rupee makes sharp gains of Rs1.35 against dollar

    Rupee makes sharp gains of Rs1.35 against dollar

    KARACHI: The Pak Rupee made significant recovery of Rs1.35 against dollar on Thursday owing to measures taken by the government to check illegal outflows of the foreign currency.

    The rupee ended Rs148.40 to the dollar from previous day’s closing of Rs149.75 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs149.75 and Rs150.00.

    The market recorded day high of Rs149.75 and low of Rs148.25 and closed at Rs148.40.

    Currency experts said that the availability of the foreign currency was also improved as expatriates are sending amount to their relatives for Eid related expenses.

    The exchange rate also witnessed improvement in the value of local currency.

    The buying and selling of dollar was recorded at Rs148.75/Rs149.50 from previous day’s closing of Rs149.00/Rs150.00 in cash ready market.

  • SRB suspends sales tax registration of Multinet Pakistan

    SRB suspends sales tax registration of Multinet Pakistan

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Multinet Pakistan (Pvt.) Limited for defaulting tax payment and non-compliance in filing monthly sales tax return.

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  • ICAP proposes restricting powers of Directorate General Intelligence and Investigation

    ICAP proposes restricting powers of Directorate General Intelligence and Investigation

    KARACHI: Institute of Chartered Accountants of Pakistan (ICAP) has proposed restricting powers of Directorate General of Intelligence and Investigation (I&I) as multiple powers of tax authorities are causing hardship for taxpayers.

    The ICAP in its tax proposals for budget 2019/2020 said that the Federal Board of Revenue (FBR) through SRO 115 (I)/2015 dated February 09, 2015 conferred upon the Directorate General (Intelligence and Investigation), Inland Revenue, the powers of the Chief Commissioner/Commissioner:

    — to exercise powers and perform functions under Sections 174, 175, 176, 177 (other than power to initiate audit), 178, 179, 180, 181, 182, Part III, Part XI of Chapter X, Sections 205 and 221; and

    — to investigate Suspicious Transactions Reports (STRs) or other assets of persons or classes of persons impounded by any department or agency of the Federal or Provincial government and prepare/transmit reports to respective RTOs or LTUs for the purpose of application of Section 111 and for taking appropriate action under the Income Tax Ordinance, 2001.

    The ICAP recommended that the law should be amended so that the authority of Director General Intelligence and Investigation is exercised only to investigate Suspicious Transactions Reports (STRs) or other assets of persons or classes of persons impounded by any department or agency of the Federal or Provincial government and prepare / transmit reports to respective RTOs or LTUs for the purpose of application of Section 111 and for taking appropriate action under the Income Tax Ordinance, 2001 and should not exercise the powers under various sections of the Ordinance.

    The creation of parallel authorities for the purpose of sections 174, 175, 176, 177, 178, 179, 180, 181, 182, Part III, Part XI of Chapter X, Sections 205 and 221 is causing problems to the taxpayers.

  • PTBA suggests reducing record retention time to five years under Sindh tax laws

    PTBA suggests reducing record retention time to five years under Sindh tax laws

    KARACHI: Pakistan Tax Bar Association (PTBA) has submitted budget proposals 2019/2020 to Sindh Revenue Board (SRB) suggesting to reduce time limit for retaining records to 5 years from 10 years.

    The apex tax bar said that under present legislation a taxpayer is required to retain records for a period of 10 years and show-cause notices may be issued within a period of 8 years from the date of relevant tax period.

    This is in excess of the statute of limitation provided under the Sales Tax Act and Income Tax Ordinance. It will not only put excess burden on the taxpayer, but also disincentivizes the tax authorities from taking timely action.

    It is therefore recommended that the time period for retention of records and assessment of tax should be reduced to five years.

    This would save taxpayers from practical difficulties and unnecessary burden while pushing the tax authorities to take more timely action.

    The PTBA also highlighted the issue that no input tax is allowed to be claimed on goods or services acquired prior to six months preceding the date of commencement of the provision of taxable services by a taxpayer.

    Therefore it is recommended that such restriction should be eliminated.

    Giving rationale to the suggestions, the PTBA said that any bar on admissibility of input tax borne by the taxpayer prior to six months preceding the commencement of provision of taxable services is against the basic principal of VAT. It is also not justifiable in case of a long term projects.

    Regarding assessment order, the apex tad bar said that it can be amended by a tax officer on the basis of any subsequent information, etc.

    “Such powers are arbitrary and unjust and may open the doors for harassment and corruption.”

    The PTBA suggested that the taxpayer should first be confronted with a show-cause notice with substantial reasons and definite information/evidence(s) that warrant reopening or amending the assessment order.

    “Further, the powers to amend any assessment order should only be vest with the Commissioner or Board only.”

    This recommendation would introduce transparency in the tax system for revision of shut and close transactions and provide justice to the taxpayer.

    The PTBA further pointed out that the tax officer is empowered to ask for any information from a taxpayer without specifying the reason or nature of the case being investigated by him.

    Scope of Section 52(1) should be restricted to specific parties and transactions which are within the jurisdiction of Sindh and are specifically identified by the tax officer instead of fishing and roving enquiries.

    This promotes equity and natural justice and avoids harassment and unnecessary proceedings.

  • National Economic Council approves GDP target at 4pc for 2019/2020

    National Economic Council approves GDP target at 4pc for 2019/2020

    ISLAMABAD: The National Economic Council (NEC) in its meeting held on Wednesday approved GDP target at 4 percent for fiscal year 2019/2020.

    Prime Minister Imran Khan chaired the NEC meeting at the PM Office.

    The meeting reviewed Annual Plan 2018/2019 and the proposed Annual Plan 2019/2020.

    The meeting approved GDP growth target of 4 percent along with sectoral growth of agriculture (3.5 percent) industry (2.2 percent) and services sector (4.8 percent) for financial year 2019/2020.

    The meeting reviewed draft 12th Five Year Plan (2018-2023). It was informed that main themes of the 12th Five Year Plan include balanced and equitable regional development; sustainable, inclusive, job-creating export-led growth; resource mobilization and improving governance; improving social protection; ensuring food and water security, enhancing connectivity, promoting knowledge economy and Clean and Green Pakistan.

    The NEC approved 12th Five Year Plan (2018-2023), in principle. It was decided that the plan will be further fine-tuned, especially its implementation mechanism, in consultation with all stakeholders.

    The meeting reviewed Public Sector Development Programme (PSDP) 2018-2019 and the proposed PSDP 2019-2020.

    It was informed that PSDP 2019-2020 focuses on new initiatives in the field of agriculture, information technology, higher education, science and technology and technical education and training.

    The meeting was informed that targeted interventions will be made in the less developed districts of the country to bring them at par with other parts of the country for regional equalization.

    Ten billion Tsunami Program, Prime Minister’s Youth Skill Development Initiative, rehabilitation of affected population residing along Line of Control, construction of Gilgit-Shandur-Chitral Road and improvement of sewerage and sanitation system of Gilgit, and development of merged districts of Khyber Pakhtunkhwa are some of the major priority areas of Public Sector Development Programme (PSDP) 2019-2020.

    The meeting approved National Development Outlay 2019-2020 amounting to Rs1.837 trillion including Federal PSDP and Provincial ADPs.

    Progress Report of CDWP and ECNEC from 1st April 2018 to March 31, 2019 was laid before the National Economic Council. The NEC confirmed extension in powers of Special Forum for Rehabilitation and Reconstruction in FATA (erstwhile) till December 2019.

    The Special Forum, under the Chairmanship of Commander 11 Corps, was established by the NEC on May 30, 2016 for a period of two years for fast track implementation mechanism for Rehabilitation and Reconstruction in erstwhile FATA.

    The meeting approved establishment of Islamabad Development Working Party headed by the Chief Commissioner ICT including representatives from Ministries of Finance, Planning and other concerned offices.

    The IDWP will be allowed to approve development project up to Rs60 million. The NEC approved procedure for approval of Program for Results (PforR), Development Policy Credits (DPCs) and Financial Intermediation Programs (FIPs).

    The Prime Minister during the meeting said that the country was facing unprecedented economic crisis. He said that joint efforts of the Federal Government and the Provincial Governments were needed to overcome the present economic crisis.

    The Prime Minister said that the Government has introduced Local Government systems in Punjab and Khyber Pkahtunkhwa to ensure empowerment of the people at grass root level and to afford them an opportunity to play their part in their developmental process.

    The Prime Minister reiterated his call to the provinces to allocate necessary financial resources, as per the commitments made earlier, for the development of erstwhile FATA.

    The meeting was attended by Adviser Finance Dr. Abdul Hafeez Sheikh, Planning Minister Makhdoom Khusru Bakhtiar, Adviser Commerce Abdul Razzak Dawood, Governor KP Shah Farman, Chief Minister Punjab Sardar Usman Buzdar, CM Sindh Syed Murad Ali Shah, CM Khyber Pakhtunkhwa Mehmood Khan, CM Balochistan Jam Kamal Khan, Finance Minister Punjab Makhdoom Hashim Jawan Bakht, Nisar Ahmed Khuhro, Ms. Naheed S. Durrani, Finance Minister KP Taimur Saleem Khagra, Jan Muhammad Jamali, PM Azad Jammu & Kashmir Raja Farooq Haider, Chief Minister Gilgit-Baltistan Hafiz Hafiz-ur-Rehman and others.

  • Monitoring of Withholding Tax: FBR launches mega operation against textile, sugar companies for tax evasion

    Monitoring of Withholding Tax: FBR launches mega operation against textile, sugar companies for tax evasion

    ISLAMABAD: Federal Board of Revenue (FBR) has launched mega crackdown against textile and sugar sectors for suppressing sales and evading tax by issuing fake and flying invoices.

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  • Bank holidays for Eid-ul-Fitr

    Bank holidays for Eid-ul-Fitr

    The State Bank of Pakistan (SBP) announced on Wednesday that banks will be closed from June 4 to 7, 2019, in observance of Eid-ul-Fitr. This extended holiday period will allow employees and customers to celebrate the festive occasion without interruption.

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