KARACHI: State Bank of Pakistan (SBP) announced bank holiday on May 01, 2019 on account of Labour Day as declared by the federal government.
The central bank in an announcement said that its offices would remain closed on Wednesday, May 01, 2019 on the occasion of Labour Day as declared by the government.
KARACHI: The prices of essential items has increased by 17.15 percent for higher income group above Rs35,000, according to weekly Sensitive Price Indicator (SPI) issued by Pakistan Bureau of Statistics (PBS).
The PBS said that the inflation of the income group above Rs35,000 was increased by 17.15 percent by week ended April 25, 2019 as compared with same week a year ago.
The PBS computes the weekly SPI with base 2007-08=100 covering 17 urban centres and 53 essential items for all income groups/quintiles and combined.
The PBS calculates SPI for income groups included Rs8,000; between Rs8,001 – Rs12,000; Rs12,001-Rs18,000; Rs18,001-Rs35,000; and above Rs35,000. The average inflation for all income group increased by 12.91 percent by week ended April 25, 2018 as compared with corresponding week last year. However, the average inflation increased by 0.37 percent over the previous week ended Aril 18, 2019.
During the week under review as compared with previous week, around 20 items registered increase in their prices. Some of these items are included: tomatoes, onions, potatoes, egg hen, bananas, pulse moong, sugar, pulse mash, garlic, pulse gram, tea prepared, mutton etc.
However, 10 items registered decline in their prices during the week, which included: chicken farm, LPG cylinder 11-kg, wheat, wheat flour, firewood, red chillie, cooking oil, vegetable ghee etc.
Average prices of 22 items remained unchanged during the week under review.
According to PBS the SPI was increasing for the last four consecutive weeks. The SPI is major component for headline inflation i.e. Consumer Price Index (CPI). The movement of SPI sets the monthly CPI.
KARACHI: Federal Board of Revenue (FBR) has issued updated up to March 09, 2019 for withholding tax rate on cash withdrawal from banking system.
The rate card has been updated after amendment to Income Tax Ordinance, 2001 introduced through Finance Supplementary (Second Amendment) Act, 2019.
The financial institutions are required to collect/deduct withholding tax under Section 231 of Income Tax Ordinance, 2001. In the latest amendment the government abolished withholding tax on cash withdrawal for filers of income tax returns.
Following are the rates for cash withdrawal and cash based transactions:
– A bank shall collect 0.6 percent under Section 231A from non-filers on payment for cash withdrawal, or sum total of payment for cash withdrawal, in a day, exceeding Rs50,000.
– Every banking company, non-banking financial institution, exchange company or any authorized dealer of foreign exchange shall collect 0.6 percent from non-filers under Section 231AA (I) at the time of sale against cash of any instrument, including demand draft, payment order, CDR, STDR, RTC, any other instrument of bearer nature or on receipt of cash on cancellation of any of these instrument where sum of total of transactions exceeds Rs25,000 in a day.
– Every banking company, non-banking financial institution, exchange company or any authorized dealer of foreign exchange shall collect 0.6 percent from non-filers under Section 231AA (2) at the time of transfer of any sum against cash through online transfer, telegraphic transfer mail transfer, telegraphic transfer, mail transfer or any other mode of electronic transfer. Where sum total of transactions exceed Rs25,000 in a day.
The withholding tax deduction is adjustable against income tax liability in case a non-filer declares his annual income and submits wealth statement.
KARACHI: The stock market is expected to experience positive momentum in the coming week as Prime Minister Imran Khan’s visit to China and the arrival of an International Monetary Fund (IMF) team in Pakistan generate optimism among investors.
(more…)KARACHI: The sales tax laws have empowered officers of Inland Revenue to summon person in legal proceedings for evidence and produce documents.
According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), Section 37 explains power of IR officers to summon persons.
Section 37: Power to summon persons to give evidence and produce documents in inquiries under the Act
Sub-Section (1): Any officer of Inland Revenue shall have powers to summon any person whose attendance he considers necessary either to tender evidence or to produce documents or any other thing in any inquiry which such officer is making for any of the purposes of this Act.
Sub-Section (2): Any person summoned under sub-section (1) shall be bound to attend either in person or by an authorized agent, as the officer of Inland Revenue may direct;
Provided that a person who is exempted from personal appearance in a court under section 132 and 133 of the Code of Civil Procedure (Act V of 1908), shall not be required to appear in person.
Sub-Section (3): Any inquiry before an officer of Inland Revenue shall be deemed to be a judicial proceeding within the meaning of section 193 and 228 of the Pakistan Penal Code (Act XLV of 1860).
KARACHI: Model Customs Collectorate (MCC) Preventive, Karachi has announced public auction of confiscated vehicles to be held on April 30, 2019 at NMB WHARF, Ghasbandar, East Wharf, Karachi.
Following vehicles will be presented for the auction:
01. Mitsubishi Pajero Jeep, Reg. No. GS-2000, Model 1994, Chassis No. V46-4034791
02. Toyota Lexus Car, Model 2006, Reg. No. UC-868, Chassis No.JTHBG 963905034702
03. Toyota Harrier Jeep 2999CC, Model 1998, Reg. No. JAA-454, Chassis No. MCU-10-0013510
04. Honda Saloon Accord Car 1990CC, Model 2003, Reg. No. BFT-418, Chassis No. CL7-3006339
05. Mercedes Benz (AG) 2999CC, Model 1991-02, Reg. No. AB-1001, Chassis No. WDB1240312B476728
06. Toyota Mark-II Saloon 1800HP, Model 2000, Reg. No. BBL-708, Chassis No. JZX110-6000922
07. Toyota Axio-Car 1496CC, Model 2007, Reg. No. BFE-068, Chassis No. NZE-141-6028039
08. Toyota Land Cruiser Jeep 3400CC, Model 1989, Reg. No. BG-1131, Chassis No. BJ 60-023765
09. Toyota Saloon Car XE 1500CC, Model 1999, Chassis No. AE-100-5171778
10. Toyota Mark-X, Model 2005, Reg. No. BGB-453, Chassis No. GRX-121-3000684
11. Toyota Premio Saloon Car 1796CC, Model 2006, Reg. No. AXE-317, Chassis No.ZZT-240-0124717
12. Toyota Premio Saloon Car, Model 2004, Reg. No.BFM-306, Chassis No. AZT240-0017447
13. Toyota Mark-X car, Model 2005m Reg. No. BBC-301, Chassis No. GRX-120-0042956
14. Toyota Hilux Surf Jeep, Model 2000, Reg. No. BJ-933, Chassis No. RZN-185-9029667
15. Toyota Vitz Car 1998 CC, Model 2004, Reg. No. RFL-1788, Chassis No. SCP-13-0048794
16. Toyota Land Cruiser Jeep, Model 2015, Reg. No. GR-541, Chassis No. TRJ150-0051668
17. Toyota Crown Royal Saloon, Model 2005, Reg. No. BEZ-998, Chassis No. GRS 182-1015624
18. Toyota Land Cruiser Jeep 2982CC, Model 1996, Reg. No. LEB-06-2007, Chassis No. VZ95-0004948
19. Chevrolet (Camero) Car 3600CC, Model 2010, Chassis No. 2GIFBIEVIA-9219497
ISLAMABAD: Prime Minister lmran Khan met Ms. Christine Lagarde, Managing Director of International Monetary fund (IMF) on the sidelines of the belt and Road Forum, a statement received here on Friday from Beijing, China.
The prime minister was assisted by Foreign Minister Makhdoom Shah Mahmood Qureshi, Adviser on Finance Dr. Abdul Hafeez Shaikh and Adviser on Commerce Abdul Razzaq Dawood.
The meeting reviewed the relationship between Pakistan and the IMF.
The prime minister identified the areas of reform and initiatives being undertaken by the government to stabilize the economy, control inflation and achieve fiscal balance.
The two leaders agreed on the importance of the Fund programme and to work towards an agreement for which an IMF delegation is coming to Islamabad.
The two sides also agreed on the need for a social safety net for the vulnerable groups of the society.
ISLAMABAD: Federal Board of Revenue (FBR) has started collecting withholding tax on phone cards on Friday following the judgment of the Supreme Court of Pakistan (SCP).
The apex court a day earlier in its judgment said that it would not interfere the taxation matter. The superior court itself suspended the taxation on phone cards in June 2018 after taking suo moto notice.
The FBR started up to 12.50 percent withholding tax on prepaid card of mobile phones.
Besides, the provinces have also started collecting sales tax on services on mobile phones usage at 17 to 19.50 percent.
In the federal capital territory the FBR is collecting federal excise duty on mobile phones in sales tax mode.
However, the service charges of mobile phone companies were still undecided as the apex court had not issued any such orders.
KARACHI: Pakistan may not get benefit from the 2nd phase of Pak China FTA as Chinese imports of $2 trillion are either of raw materials or high-tech equipment.
“Pakistan does not have the industrial and technical base to produce high-tech equipment such as computers, ICs, telecommunication equipment & automobiles,” Saud Mahmood, Chairman SITE Taxation and Trade Policy, said in a statement on Friday.
Moreover, he said, exports of minerals, live stock and agricultural products is not accelerated by FTAs as importing countries do not apply duties on raw materials.
China is known as the supplier of the world with huge current account surpluses with most trading partners.
After the first phase of PAK China FTA, we had to impose up to 30 percent regulatory duty to save the local industry from closing down.
Even after the imposition of 30 percent regulatory duty, trade deficit from China is over $15 billion with Pakistan exporting under USD 3bn worth of goods to China, mostly minerals, agricultural products, and livestock.
In view of the above ground realities, it would be interesting to see in which areas Ministry of Commerce has envisioned growth of Pakistan’s exports to China.
If exports to China are expected to grow to $6 billion after the 2nd phase of FTA, an item wise break up in which exports are expected to jump should be shared with the industry for their comments.
In the absence of such a detailed effort duly endorsed by leading chambers, it seems that we are all set to shoot ourselves in the foot again.
ISLAMABAD: A team of International Monetary Fund (IMF) will visit Pakistan starting April 29, 2019 to continue technical discussions for IMF supported program, spokesman of ministry of finance said on Friday.
Dr. Khaqan Najeeb, Adviser and Spokesman, Ministry of Finance said that extensive preparation for data and macro economic framework finalization and structural reforms were going on.
The finance ministry held in-depth discussions with all key stakeholders including State Bank of Pakistan, Power and Gas Division, Privatization Commission, Federal Board of Revenue and Benazir Income Support Program among others, he said.