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  • FBR recommended to reduce record retention period to three years

    FBR recommended to reduce record retention period to three years

    KARACHI: Federal Board of Revenue (FBR) has been recommended to reduce the time limit to past three years for retention of sales tax record.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2020/2021 submitted to the FBR, highlighted the issue of Section 24 of Sales Tax Act, 1990, which required retention of record and document for six years.

    The KCCI said that the long time period only allows the officers of Inland Revenue to blackmail and harass the tax payers by issuing demands from closed accounts as far back as 6 years.

    The negative impact of such provision is that the revenue officials spend more time in fishing for discrepancies in old records instead of focusing their efforts on broadening of tax base.

    The KCCI proposed that the period retention of record and documents be reduced to 3 years, which is an established practice worldwide for all financial transactions.

    Regional Tax Offices (RTOs) and officers will have to work more on identifying new tax-payers instead of fishing in old records and create demand.

    The period of 6 years is counter-productive for revenue generation and renders the RTOs inefficient.

    In this era of computerization where all the transactions of the registered persons are cross verified instantaneously by the FBR, and the audits are conducted without any delay, the period of maintenance of records and documents should be reduced from 6 to 3 years.

  • Customs auction of vehicles to be held on June 04 at ASO Headquarter

    Customs auction of vehicles to be held on June 04 at ASO Headquarter

    KARACHI: Pakistan Customs has announced auction of used vehicles to be held on June 04, 2020 at Anti-Smuggling Organization (ASO), East Wharf, Karachi.

    Following vehicles will be presented for the auction:

    01. Used Toyota Lexus Car – Reg No. UC-868 -Model-2006-(As per seat Belt), Chassis: JTHBG 963905034702 / Engine EMH-3 GR-FE158467 – 3485 cc.

    02. Used Toyota Harrier Jeep – Reg.No-JAA-454 – Model-1998 – 2999cc, Chassis No-MCU-10-0013510 – Engine No- IMZ-FE6688090.

    03. Used Toyota Mark-II Saloon Car / Reg. No-BBL-708 / Model-2000 / 1800 HP, Chassis No-JZX110-6000922 / Engine No-1JZ-075010

    04. Used Toyota Land Cruiser Jeep – P.White Reg.No. LZN-888 – Model – 1999 – 4663 CC, Chassis No-UZJ 100-0081129 / Engine No- 2 UZ-0132269.

    05. Used Toyota Hilux Surf Jeep – Reg. No. CJ-4242 (Sindh) – Model-1990 – 2446 CC, Chassis No LN130-0026273 / Engine No. 2L-2264058

    06. Used Nissan X-Trail 5 Door Jeep – Pearl White Reg. No. GR-621 – Model-2005 (As per seat Belt Model-2000), Chassis No. NT 30-100374 – Engine No. QR 20 (DE)

    07. Used Toyota Land Cruiser Jeep – ( Petrol ) White Reg. No. BF-5933 – Model-1995 – 4476 CC, Chassis No. FZJ 80-0109507 / Engine No.

    08. Used Mercedes Benz Saloon Car (AG) – Reg.No. # AB 1001, Chassis No-WDB1240312B476728

    09. Used Toyota Hilux Surf Heep – Reg,No. UU-691 – Modle – 1992 – 240CC., Chassis – LN130-7022502 –

    Engine No-3244904

    10. Used Toyota Mark-X Car Reg. No. AQD-567 – Model-2006 – 2499 cc, Chassis # GRX120-3018594 Engine # 4 GR-FSE

    11. Used Toyota Hilux Surf Jeep Reg. # BC-4942 (Sindh) – Model-1993 – 3000 cc, Chassis # KZN130-9021488 – Engine # 1KZ-0040092

    12. Used Mercedes Saloon Car Reg # ZA-030 (Islamabad) – Model-2000 – 3200cc – Colour White, Chassis # WDB1704652F205019 Engine # 1234567

    13. Used Honda Hybrid Saloon Car Reg # AAP-669 (Quetta) – Model-2006 – 1300 cc, Chassis # FD3-1004625 Engine # LDA-1304637

    14. Used BMW Saloon Car ( 320i ) Reg # AAQ-687 (Quetta) – Model-2005 – 1995 cc, Chassis # WBAVA76080NK19520 Engine # A629H507N46B20BA

    15. Used BMW Car ( 735i ) Reg # YG-455 ( Islamabad ) – Model-2003 – Colour Black, Chassis # WBAGL42050DD81475

    16. Used Toyota Crown Royal Saloon Car Reg # AZS-383 – Model-2013 – Colour Silver, Chassis # AWS210-6030122

    17. Used Toyota Hilux Surf Jeep Reg # WAG – 871 (Quetta) – Model-1996 – 2700 cc, Chassis # KZN185-0033706 Engine # 1KZ-0347330

    18. Used Toyota AQUA Car Reg # ADT-722 – Model-2012, Chassis # NHP10-2060843

    19. Used Nissan X-Trail Jeep Reg # WAJ-910 ( Quetta ) – Model-2004, Chassis # NT30-132366

    20. Used Toyota Mark-X car Reg # Fake-SP-046-A – Model-2005 – 2500 cc, Chassis # GRX120-3006864

    21. Used Toyota Land Cruiser VX Jeep Reg # BC-3498 – Model-1993, Chassis # JT111TJ-800701495

    22. Used Toyota Hilux Surf Jeep ( Petrol ) Reg. # BF-0150 – Model-1996, Chassis # VZN185-0024837

    23. Used Toyota Hilux Surf Jeep ( Petrol ) Reg. # BF-1429 – Model-1996, Chassis # RZN185-0006433

  • Notice can be sent to any person requiring declaration of assets of spouse, minor children

    Notice can be sent to any person requiring declaration of assets of spouse, minor children

    A Commissioner Inland Revenue of the Federal Board of Revenue (FBR) has been vested with substantial powers under the Income Tax Ordinance, 2001, to scrutinize the asset details of individuals, including those pertaining to their families, by issuing notice.

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  • Interest rates on saving certificates slashed up to 100 basis points

    Interest rates on saving certificates slashed up to 100 basis points

    ISLAMABAD: The profit rate on saving certificates have been reduced up to 100 basis points due to sharp cut in key policy rate by the State Bank of Pakistan (SBP). The new rate of return on national saving certificates are applicable from June 02, 2020.

    According to Central Directorate of National Savings (CDNS), the interest rate by one percent on the savings certificates investment due to lower rates of Pakistan Investment Bonds (PIB) applicable from June 02, 2020.

    “The CDNS interest rates are linked with the policy of Pakistan Investment Bonds (PIBs), set the SBP,” an official of CDNS told state-run media.

    The rate of return on ‘Behbood Savings Certificates’ (BSC) reduced from 10.32 to 9.84 percent and as similarly Pensioner Benefit Accounts (PBA) recorded downwards from 10.32 to 9.84 percent.

    The profit rates on ‘Shuhada Family Welfare Account’ also reduced from 10.32 to new rates of 9.84 percent applicable from June 02 of this year.

    The profit rates on ‘Defense Savings Certificates’ (DSC) was also reduced from 8.54 to 8.05 percent and interest rates on ‘Regular Income Certificates’ also downwards 8.28 to 7.44 percent according to the current market situation.

    The profit rates on Special Savings Certificates (Registered)/Accounts was also reduced on all three categories of certificates from 1-5 Profit 8.00 to 7.10 percent, 6th Profit 8.60 percent 7.40 percent and Average 8.10 to 7.15 percent by June 02, 2020.

    The Short Term Savings Certificates profit rates also reduced on different categories on months on month bases by 3- Months from 7.80 to 7.72 , on 6- Months certificates 7.50 to 7.36 percent and on 12-Months slightly increased from 6.95 to 7.30 percent.

    The profit rates on Savings Account (SA) has also been reduced from 7.00 to 6.50 percent decided by last meeting held in Ministry of Finance.

  • FBR allows repayment of customs duty on import of plastic raw material

    FBR allows repayment of customs duty on import of plastic raw material

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed repayment of customs duty at Rs5.42 per kilogram on import of raw material for manufacturing of plastic goods meant for export.

    The FBR on Tuesday issued SRO 461(I)/2020 to amend SRO 212(I)/2009 to allow repayment of export duty on import of raw material.

    Through the instant SRO the FBR allowed duty drawback on import of 10 different raw material for the manufacturing of plastic goods at the rate of Rs5.42 per kilogram.

    The FBR allowed duty drawback on export of manufactured products from May 20, 2020. The FBR said that repayment of custom duty shall be paid on manufacturing of 100 percent goods including packaging materials used in the goods meant for export such as bottles, jars, vials, containers, droppers and the like.

    The conditions for the facility prescribed in the actual SRO is that:

    — the manufactured goods are exported out of Pakistan and an application for repayment of customs–duties is presented to the proper officer of Customs within two hundred and ten days of such exportation or within one hundred and eighty days from the date of realization of foreign exchange as shown on Bank Credit Advice issued in accordance with the current directive of the State Bank of

    Pakistan; and

    — the exporter makes a declaration on the goods declaration filed under section 131 of the Customs Act, 1969 (IV of 1969) and on other export documents for his claim for repayment of the customs–duties paid on the imported raw materials used in the production or manufacture of the goods being exported.

  • FBR advised tracing unregistered persons instead collecting further tax

    FBR advised tracing unregistered persons instead collecting further tax

    KARACHI: Federal Board of Revenue (FBR) has been urged to trace unregistered persons instead collecting three percent further sales tax on local supplies.

    (more…)
  • Equity market gains 386 points as banks attract investors

    Equity market gains 386 points as banks attract investors

    KARACHI: The equity market gained 386 points on Tuesday as banking sector attracted attention of investors.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,408 points as against 34,022 points showing an increase of +386 points.

    Analysts at Arif Habib Limited said that the market went up today on the back of banking sector that gained prominence post Eid.

    Yesterday’s performance of Index also came largely from Banking sector and today’s continuation gave investors the confidence to invest more.

    A couple of factors that helped Investors make a buying stance on Banking sector have been a gradual increase in secondary market PIB yields since last month as well as annual average inflation for FY20 in excess of 10 percent that diminishes the prospect of further rate cut and therefore a renewed interest in Banking sector.

    Interestingly, international crude prices were up as well overnight and during today’s market session, however, E&P stocks didn’t pay heed to the price increase and saw selling pressure. Cement sector stocks also showed some signs of revival but remained range bound.

    Banking sector stocks led the volumes with 50 million shares, followed by Technology (24.3 million) and Cement (17.3 million). Among scrips, PAEL realized trading volume of 14.2 million, followed by TRG (12.5 million) and HASCOL (12.3 million).

    Sectors contributing to the performance include Banks (+332 points), E&P (+38 points), Autos (+13 points), Fertilizer -22 points), Pharma (-18 points) and Inv Banks (-14 points).

    Volumes increased from 198.1 million shares to 220.6 million shares (+11 percent DoD). Average traded value also increased by 19 percent to reach US$ 52.3 million as against US$ 44.2 million.

    Stocks that contributed significantly to the volumes include PAEL, TRG, HASCOL, BOP and UNITY, which formed 28 percent of total volumes.

    Stocks that contributed positively to the index include MCB (+89 points)a, UBL (+82 points), HBL (+63 points), BAFL (+35 points) and POL (+29 points). Stocks that contributed negatively include FFC (-17 points), DAWH (-14 points), SEARL (-11 points), HMB (-11 points), and OGDC (-7 points).

  • Rupee further weakens by 81 paisas against dollar

    Rupee further weakens by 81 paisas against dollar

    KARACHI: The Pak Rupee further weakened by 81 paisas against dollar on Tuesday owing to higher demand for import and corporate payments, dealers said.

    The rupee closed at Rs164.89 to the dollar from last day’s closing of Rs164.08 in interbank foreign exchange market.

    The rupee depreciated by Rs1.79 against the dollar during last two days.

    Currency experts said that the deterioration in rupee value was due to higher demand for import and corporate payments.

    Further, they said that after ease in lockdown the demand was increasing and importers started purchasing dollars for future buying.

    The currency experts said that fall in exports and remittances also put pressure on the local currency.

    Overseas Pakistani workers sent home $1.790 billion in April, compared with $1.894 billion in previous month.

    Pakistan received $18.781 billion in remittances in July-April FY2020, compared with $17.801 billion in the same period last year.

    However, the experts said that the local currency recovered on the back of improved economic indicators.

  • Honda Cars declares 82 percent decline in annual profit

    Honda Cars declares 82 percent decline in annual profit

    KARACHI: Honda Atlas Cars (Pakistan) Limited has posted 82 percent decline in annual profit for the period ended March 31, 2020, said a notification on Tuesday.

    The car manufacturing company declared Rs682 million profit after tax for the year ended March 31, 2020 as compared with Rs3.85 billion in the preceding year.

    The sales of the company fell by 42 percent to Rs55 billion for the year ended March 31, 2020 as compared with Rs95.13 billion in the preceding year.

    The administrative expenses were flat at Rs738.75 million for the year. Operating expenses were also reduced to Rs1.045 billion for the year under review.

    The company declared Rs4.77 as earning per share for the year ended March 31, 2020 as against Rs26.97 EPS declared in the preceding year.

  • Above 120,000 income tax returns added to ATL during lockdown

    Above 120,000 income tax returns added to ATL during lockdown

    ISLAMABAD: The tax authorities have received above 120,000 income tax returns since launch of new Active Taxpayers List (ATL) on March 01, 2020 and during ongoing lockdown to prevent spread of coronavirus, according to updated list issued June 01, 2020.

    The updated ATL for tax, around 120,000 taxpayers filed their annual returns for tax year 2019 since March 01, 2020.

    The number of active taxpayers increased to over 2.65 million as of May 31, 2020 from 2.53 million returns as shown in new ATL for tax year 2019.

    The FBR updates ATL every week and on an average the revenue body receives around 20,000 returns per week. However, due to lockdown in the country after the outbreak of coronavirus the number of financial transactions had fallen drastically.

    It is worth mentioning that additional 120,000 income tax returns have been filed after the due date. The due date for filing income tax returns for tax year 2019 was February 28, 2020.

    As per law it was mandatory for individuals, Association of Persons (AOPs) and corporate entities to file annual return in order to avail reduced rates of withholding tax on certain transactions.

    Filing return after due date a person is required to pay surcharge in order to appear on ATL besides paying late filing penalty.

    The sources said changes in law through Finance Act, 2019 were also compelling to file their returns. Through Finance Act, 2019, Tenth Schedule was inserted to Income Tax Ordinance, 2001 under which a person not appearing on the ATL would be liable to pay 100 percent additional withholding tax while making certain transactions.

    Prior to this change the persons not filing income tax returns were liable to pay enhanced rate of withholding tax.

    Previously, the law provides for the concept of a non-filer and stipulates higher withholding rates for the same which were adjustable at the time of filing of income tax return.

    A senior FBR official said that such tax regime had created a misconception that a non-filer can go scot free by choosing not to file income tax return.

    The measure are meant to increase the number of filers, however over time the focus shifted to raising additional revenue only.

    The measure had not achieved the desired results as the regime did not provide for any legal framework to ensure filing of return by such non-filers, the official said.

    In order to remove the aforesaid misconception, the concept and the term of ‘non-filer’ was abolished from the statute, the official added.