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  • Asad Umar reviews revenue collection, broadening of tax base

    Asad Umar reviews revenue collection, broadening of tax base

    KARACHI: Finance Minister Asad Umar on Monday reviewed the revenue collection progress and ongoing drive of broadening of tax base at a meeting with senior officials of Federal Board of Revenue (FBR).
    The meeting was attended by Member Inland Revenue Operations Ms. Seema Shakil, Member Customs Operations Agha Jawad, Chief Commissioners Inland Revenue and Chief Collectors of Pakistan Customs.
    Ms. Seema Shakil updated the finance minister about revenue collection and performance of Inland Revenue besides giving details of ongoing campaign for broadening of tax base.
    She apprised the finance minister about the difficulties in the way of taking harsh action against tax evaders.
    The sources said that the finance minister issued directives for taking harsh measures against tax evaders including high profile cases.
    He also assured all logistic support to FBR officials in taking actions against influential persons.


    Member Customs Operations Agha Jawad also briefed the finance minister about the working of customs clearance. The member said that transparency had been ensured in the clearance process in order to facilitate genuine taxpayers.
    The member pointed out high volume of smuggled betel nut.
    The finance minister directed to evolve a tariff mechanism for betel nut.
    The finance minister directed both the wings of FBR to ensure facilitation of taxpayers and focus on tax evaders.

  • FBR adds over 114,000 return filers to ATL

    FBR adds over 114,000 return filers to ATL

    ISLAMABAD: Federal Board of Revenue (FBR) has added over 114,000 return filers to Active Taxpayers List (ATL) following the grant of extension in filing income tax returns for Tax Year 2018 up to March 31, 2019.

    The FBR issued weekly updated ATL 2018 on Monday, which showed the number of active taxpayers increased to 1.75 million.

    The FBR issued first ATL 2018 on March 01, 2019 which had carried 1.6 million taxpayers in the list.

    The appearance of ATL is mandatory for availing reduced rate of withholding tax rate and other benefits available only to return filers.

    Through Finance Act, 2018, a section 182A was inserted to Income Tax Ordinance, 2001 which barred the late filers to appear on the ATL.

    Therefore, the ATL issued on March 01, 2019 only those taxpayers were included who filed their returns by December 15, 2018 in case of salaried persons, business individuals and companies with special years and December 31, 2018 for companies with normal tax year.

    However, the FBR last week extended the last date for filing income tax returns for all classes of taxpayers. Hence, those taxpayers who have filed their returns after December 15 or December 31 became eligible for ATL.

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    Late filers to become part of ATL as FBR extends last date for filing return up to March 31

  • Preventive auctions confiscated vehicles on March 19

    Preventive auctions confiscated vehicles on March 19

    KARACHI: Model Customs Collectorate (MCC) Preventive has announced public auction of confiscated vehicles on March 19, 2019 to be held at State Warehouse, Ghasbandar, East Wharf, Karachi.

    The following vehicles will be presented for auction:

    01. Mitsubishi Pajero Jeep, GS-200, Model 1994, Chassis No. Reg. GS-2000/V46-4034794

    02. Lexus Car, Model 2006, 3450CC, Chassis No. JTHBG963905034702

    03. Toyota Premio Car VVT, Reg. No. AAH-747, Model 2007, Chassis No. ZZT240-0140149

    04. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999CC, Chassis No. MCU-10-0013510

    05. Toyota Hilux Surf, Reg No. CP-0693, Model 1990, 2958CC, Chassis No. LN-130-0009771

    06. Honda Saloon Accord Car, Reg. No. BFT-418, Model 2003, 1990CC, Chassis No. LC7-3006339

    07. Toyota Land Cruiser Parado, Reg. No. BD-9380, Model 1998, 2657CC, Chassis No. RZI-90-0002888

    08. Toyota Hilux Surf SSR-X-3.0, Reg No. BD-8045, 2962CC, Chassis No. KZN-130-9048116

    09. Mercedes Benz (AG), Fake Reg. No. AB-1001, 2999CC, Chassis No. WDB1240312B4767728

    10. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, 1800HP, Chassis No. JZX110-6000922

    11. Toyota Hilux Surf, Reg. No. BD-1688, Model 1994, Chassis No. LN-130-0123784

    12. Honda Accord, Reg. No, AUX-934, Model 2004, Chassis No. CL7310078

    13. Mercedes Benz Car, Model 2001, 2000CC, Chassis No. WDB2037452A272217

    14. Toyota Axio-X car, Reg. No. BFE-068, 1496CC, Model 2007, Chassis No. NZE-141-6028039

    15. Toyota Primo Car, Reg. No. AAM-095, Model 2005, 1794CC, Chassis No. ZZT-240-5039822

    16. Honda Civic Saloon Car, Reg. No. AAM-988, Model 2007, Chassis No. FD-31001100

    17. Toyota Land Cruiser Jeep, Reg. No. BG-1131, Model 1989, 3431CC, Chassis No. BJ 60-023765

    18. Toyota Corolla Car, Model 2015, Reg. No. BDE-852, Chassis No. NZE170R4016729

    19. Toyota Crown Saloon Car, Model 2004, Reg. No. BHK-012, Chassis No. GRS182-5014910

    20. Toyota Saloon Car XE- Model 1999, 1500CC, Cassis No. AE-100-5171778

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  • FBR to improve capacity for action against tax evaders

    FBR to improve capacity for action against tax evaders

    KARACHI: Federal Board of Revenue (FBR) is increasing its capacity to handle large size data of tax evaders, FBR chairman said in a meeting with members of Karachi Chambers of Commerce and Industry (KCCI).

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  • Equity market climbs up by 545 points

    Equity market climbs up by 545 points

    KARACHI: The equity market gained 545 points on Monday following positive comments came from the finance minister at an even.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,852 points as against 38,307 points showing an increase of 545 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note with +49 points and initially leaped forward +200 points however, low volumes and lack of interest by investors in general caused the index to slide.

    The market came down by 145 points, again with low volumes. Mid day, activity started picking pace with first signs of recovery in KEL, followed by Cement sector and then spreading to all and sundry.

    Positive comments by participants in a Bloomberg conference and days of lethargic activity is believed to have caused an improvement in sentiment and increase in otherwise poor trading volumes.

    Sectors leading the volumes table include Power (KEL), Banks (BOP) and Cement (MLCF). Large cap stocks such as UBL, HBL, ENGRO, OGDC increased significantly that had the index close +566 points (unadjusted).

    Sectors contributing to performance include Banks (+230 points), Fertilizer (+93 points), Cement (+70 points), Power (+47 points), & O&GMCs (+38 points).

    Volumes declined from 129.5mn shares to 99.4 million shares (-23 percent DoD). Average traded value also declined by 3 percent to reach US$ 32 million as against US$ 33.1 million.

    Stocks that contributed significantly to the volumes include KEL, BOP, PAEL, PIBTL and TRG, which formed 39 percent of total volumes.

    Stocks that contributed positively include HBL (+91 points), MCB (+69 points), FFC (+43 points), HUBC (+35 points), and LUCK (+34 points). Stocks that contributed negatively include COLG (-12 points), IGIHL (-7 points), JLICL (-7 points), SEARL (-7 points) and PMPK (-5 points).

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  • Rupee ends down by 11 paisas against dollar

    Rupee ends down by 11 paisas against dollar

    KARACHI: The rupee ended down by 11 paisas against dollar on Monday owing to high demand for import and corporate payments.

    The rupee closed at Rs139.39 to the dollar from last Friday’s close of Rs139.28 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs139.30 and Rs139.40.

    The market recorded a high of Rs139.40 and low of Rs139.30 and closed at Rs139.39.

    Currency experts said that the demand pressure was due to market opened after two weekly holidays.

    They said that the narrowed trade deficit and current account deficit would help the rupee to regain some values in coming days.

    They further said that the inflows from friendly countries would also help the local unit to gain the values against the greenback.

    The exchange rate in open market also witnessed depreciation in rupee value by 20 paisas.

    The buying and selling of dollar was recorded at Rs139.20/Rs139.70 as compared with last Saturday’s closing of Rs139.00/Rs139.50 in cash ready market.

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  • FBR not to conduct raids: FPCCI

    FBR not to conduct raids: FPCCI

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday said that the tax authorities have assured of not to conduct raids and harass taxpayers.

    Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Dr. Mirza Ikhtair Baig Sr. Vice President FPCCI, Vice Presidents FPCCI, Mr. S. M. Muneer, Mr. Zubair Tufail, former President FPCCI and Sheikh Khalid Tawab Former Sr. Vice President FPCCI hailed the announcement of Chairman Federal of Revenue (FBR) Dr. Jehanzeb Khan made in a meeting with Business Community at FPCCI that henceforth there will be no raids on the tax payer as these raids had created great deal of concern, harassment and anxiety among the business circles.

    They also appreciated the decision of Chairman FBR to formulate a Committee consisting of FPCCI and officials of FBR to resolve the day to day issues of businessmen. They assured that FPCCI will not support tax evaders and will look into the individual cases of tax evasion on merit.

    The President FPCCI underscored the need of activation of Alternate Dispute Resolution Committee for resolving taxes related cases of Rs. 38 billion. He also suggested early issuance of promissory notes against the refunds as exporters are facing huge capital shortage for making new investments.

    He also emphasized on the identification of new tax payers and exploration of new areas for broadening of tax payers instead of putting more burden on the existing tax payers.

    The businessmen appreciated FBR for extending date of filing tax returns till March 31, 2019 and urged to enhance the tax base through direct taxes instead of indirect taxes which directly affects the low income group.

  • Rupee weakens against dollar in mid-day trading

    Rupee weakens against dollar in mid-day trading

    KARACHI: The Pak Rupee weakened against dollar by 13 paisas in mid-day trading on Monday owing to higher demand for import and corporate payments.

    The US dollar is being traded at Rs139.41 in interbank foreign exchange market.

    Currency experts said that the demand pressure was due to market opened after two weekly holidays.

    They said that the narrowed trade deficit and current account deficit would help the rupee to regain some values in coming days.

    They further said that the inflows from friendly countries would also help the local unit to gain the values against the greenback.a

  • Income Tax Ordinance 2001: amended advance tax rates on marriages, functions

    Income Tax Ordinance 2001: amended advance tax rates on marriages, functions

    KARACHI: Federal Board of Revenue (FBR) has updated advance tax rates on marriages and functions through latest amendment to Income Tax Ordinance, 2001.
    The national assembly recently approved Finance Supplementary (Second Amendment) Act, 2019 and advance tax rate for functions and gathering has been updated.
    The advance tax is collected under following section of the Ordinance.
    Section 236D: Advance tax on functions and gatherings
    Sub-Section (1): Every prescribed person shall collect advance tax at the rate specified in Division XI of Part IV of the First Schedule on the total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.
    Sub-Section (2): Where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance tax on the payment for such food, service or facility at the rate specified in Division XI of Part IV of the First Schedule from the person arranging or holding the function.
    Sub-Section (3): The advance tax collected under sub-section (1) and sub-section (2) shall be adjustable.
    Sub-Section (4): In this section,—
    (a) “function” includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering held for such purpose; and
    (b) “prescribed person” includes the owner, a lease-holder, an operator or a manager of a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.
    The rate of tax to be collected under each sub-sections (1) and (2) of section 236D shall be 5%;
    Provided that the rate for the function of marriage in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose shall be as set out in the Table below:─

    S. No.Rate of tax 
    015% of the bill ad valorem or Rs20,000 per function, whichever is higherFor Islamabad, Lahore, Multan,Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Shekhurpura, Dera Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbottabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Loralai, Khuzdar, Dera Murad Jamali and Turbat.
     
    025% of the bill ad valorem or Rs10,000 per function, whichever is higherFor cities other than those mentioned above.

    Through Finance Supplementary (Second Amendment) Act, 2019, the following amendment has been inserted:
    “Provided further that the rate for the function of marriage in a marriage hall, marquee or a community place with the total function area less than 500 square yards or, in case of a multi-stories premises, with the largest total function area on one floor less than 500 square yards, shall be 5 percent of the bill ad valorem or Rs5,000 function whichever is higher.”
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  • Yarn merchants reject new customs valuation ruling

    Yarn merchants reject new customs valuation ruling

    The Pakistan Yarn Merchants Association (PYMA) has officially rejected the new valuation ruling for polyester filament yarn (PFY) issued by the customs authorities, terming it as “unjust” and not reflective of the current global market prices.

    (more…)