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Business community applauds Pakistan response to India

KARACHI: The business community has applauded the professional approach of Pakistan air force for downing two India jets, which intruding into Pakistani soil.

Dr. Mirza Ikhtiar Baig, Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), business community leaders S.M. Muneer, Iftikhar Ali Malik, Zubair Tufail, Shaikh Khalid Tawab, have vehemently condemned the act of aggression by Indian air force by violating Pakistan Air space and targeting civilians inside Pakistan.

They said that the Modi’s government is in hysteric state due to their anticipated defeat and they want to create an atmosphere where they can exploit the sentiments of their voters against Pakistan.

The business community is behind our brave armed forces and expresses its full solidarity with them. Pakistan Armed forces are among the top Professional forces in the world and not only they can defend the motherland but resoundingly respond to the enemy.

Dr. Baig said that Pakistan is a nuclear state now and any misadventure by India will have catastrophic consequences for them.

Pakistan has acted with responsibility so far and Prime Minister has shown maturity by offering all options to India.

Pakistan’s stance has earned support worldwide and no one has seriously taken Indian allegations against Pakistan for Pulwama incident.

The incident was purely indigenous and reaction to Indian barbaric brutality against Kashmiri people.

The business community congratulates the Pakistan Air force for downing the tow Indian jets. They said, India must have leant lesson from this response and will think several times before going any further.

Dr. Baig also lauded the efforts of the Foreign Ministry for engaging the world on this crucial issues and effectively projecting Pakistan stance.

February 27, 2019
List of 1,208 banned tariff lines for import from India

KARACHI: Following is the list of items not importable from India under Import Policy Order 2016 as issued by minister of commerce.

The items cannot be imported under Appendix-G of Import Policy Order 2016.

Following is the list including Serial Number, PCT Code and Description

See Appendix G of Import Policy Order 2016

February 27, 2019
Equity market recovers earlier losses on shooting down two India aircraft

KARACHI: The equity market has recovered early day losses following the news of retaliation by Pakistan and shot down two Indian aircrafts inside Pakistan.

The KSE-100 index is being traded at 37,723 points dwon 1,098 points or 2.83 percent at 12:16PM.

In response to PAF strikes this morning as released by MoFA, IAF crossed LOC. PAF shot down two Indian aircrafts inside Pakistani airspace. One of the aircraft fell inside AJ&K while other fell inside IOK. One Indian pilot arrested by troops on ground while two in the area, said GD ISPR.

Earlier in the day the stock market witnessed a decline of 1475 points.

February 27, 2019
Rupee falls 23 paisas in mid-day trade on border tension

KARACHI: The Pak Rupee declined further against the US dollar in mid-day trade on Wednesday owing to growing border tension.

The dollar is being traded at Rs 139.11 in interbank foreign exchange market. The rupee went down by 23 paisas so far when compared with Rs 138.88 to the dollar in foreign currency market

Indian military planes violated the Line of Control (LoC), intruding from the Muzaffarabad sector, Director-General Inter-Services Public Relations Major-General Asif Ghafoor said on his official Twitter account early on Tuesday.

Following the mounting tension at borders the currency markets witnessed deterioration.

Last week the Pak Rupee made significant gain dollar owing to shrinking current account deficit and foreign inflows.

Last Friday the rupee maintained gains for the third consecutive day as exchange rate was reached to Rs138.92 to the dollar on February 19, 2019.

Pakistan’s current account deficit has narrowed by 16.8 percent to $8.424 billion owing to declining imports and improved foreign remittances.

According to statistics released by State Bank of Pakistan (SBP), the current account deficit narrowed to $8.424 billion during July – January 2018/2019 as compared with the deficit of $10.124 billion in the corresponding period of the last fiscal year.

February 27, 2019
Income Tax Ordinance 2001: No commercial, industrial gas or electricity connection without NTN

KARACHI: The National Tax Number (NTN) is mandatory for a person applying by commercial or industrial connection for electricity or natural gas.

The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 which explained about taxpayer’s registration.
Section 181: Taxpayer’s registration.—

Sub-Section (1): Every taxpayer shall apply in the prescribed form and in the prescribed manner for registration.

Sub-Section (2): The Commissioner having jurisdiction over a case, where necessitated by the facts of the case, may also register a taxpayer in the prescribed manner.

Sub-Section (3): Taxpayers’ registration scheme shall be regulated through the rules to be notified by the board.

Sub-Section (4): From tax year 2015 and onwards, in case of individuals having Computerized National Identity Card (CNIC) issued by the National Database and Registration Authority, CNIC shall be used as National Tax Number.

Section 181A: Active taxpayers’ list

Sub-Section (1): The Board shall have the power to institute active taxpayers’ list.

Sub-Section (2): Active taxpayers’ list shall be regulated as may be prescribed.

Section 181AA: Compulsory registration in certain cases

Sub-Section (1): Notwithstanding anything contained in any law, for the time being in force, any application for commercial or industrial connection of electricity or natural gas, shall not be processed and such connection shall not be provided unless the person applying for electricity or gas connection is registered under section 181.

Section 181B: Taxpayer card

Subject to this Ordinance, the Board may make a scheme for introduction of a tax-payer honour card for individual taxpayers, who fulfill a minimum criteria to be eligible for the benefits as contained in the scheme.

Section 181C: Displaying of National Tax Number

Every person deriving income from business chargeable to tax, who has been issued a National Tax Number, shall display his National Tax Number at a conspicuous place at every place of his business.

February 27, 2019
FBR fixes sales tax rate for cottonseed

ISLAMABAD: Federal Board of Revenue (FBR) has fixed Rs 8 as sales tax for 40 kilogram of cottonseed for the period starting from July 01, 2019.

Similarly, Rs 7 sales tax for 40kg of cottonseed for the period of starting July 01, 2018 and ending on June 30, 2018 (both days inclusive).

The FBR on Tuesday issued SRO 253(I)/2019 and said that SRO 188(I)/2015 dated March 05, 2018 was issued for a special procedure for payment of sales tax on cottonseed oil and to exempt cottonseed oil cake from payment of sales tax.

The FBR further said that the notification was declared ultra vires by the Lahore High Court and the order of the Lahore High Court was upheld by the Supreme Court of Pakistan vide its order dated April 16, 2018 in Civil Petition No. 1028 to 1121, 1433 to 14558 and 2550 to 2553 of 2017 on the ground that the approval of the federal cabinet was not obtained.

Therefore, the federal government approved the amendments to Sales Tax (Special Procedures) Rules, 2007, which would be effective July 01, 2018.

The FBR said that the notified sales tax rates would be collected under the special procedure.

It said that all cotton ginners, if not already registered or required to be registered, shall obtain sales tax registration for the purpose of these rules.

The amount of sales tax so charged and collected by the cotton ginners shall be declared in the monthly returns and shall be deposited as such without any input tax adjustment.

The suppliers of cottonseed shall mention sales tax charged separately on the sales tax invoice to be issued by them.

The oil expelling units using the cottonseed on which sales tax has been charged and collected in the aforesaid manner shall be exempt from payment of sales tax on the supplies of oil cake produced from such cottonseed.

The ginner shall submit a certificate to the commissioner having jurisdiction by the 15th day of the month following the tax period for the quantity of cottonseed supplied to the growers for sowing purpose.

February 27, 2019
Byco Petroleum declares 96pc decline in half-year profit

KARACHI: The net profit of Byco Petroleum Pakistan Ltd. fell sharply by 96 percent for the first half ending December 31, 2018 due to depreciation in Pak Rupee value and weak upliftment of furnace oil.

Byco Petroleum Pakistan Ltd. (BPPL) on Tuesday announced financial results for the six months ending on 31 December 2018.

The net profit was Rs. 89 million as compared with Rs2.3 billion a year earlier, said a press release.

On a per share basis, the company earned Rs0.02 per share during the six months ending on 31 December 2018 as opposed to Rs0.44 per share in the prior year.

Byco Petroleum generated a gross profit of Rs1.4 billion in the first half of the current fiscal year compared with a profit of Rs4.7 billion a year earlier.

The company’s gross sales increased by an impressive 52 percent during the first half of the fiscal year from the same period in the previous year to Rs123.47 billion.

The company said that it was a difficult period for Pakistan’s energy industry however, and particularly so for the oil refining industry.

The country witnessed a 14 percent drop in the value of the Pakistani Rupee against the US dollar.

The oil price environment was highly volatile as the international Brent oil price jumped to annual highs then plunged to annual lows within a few months.

Meanwhile, the upliftment of furnace oil (FO) remained weak in the country.

This challenging backdrop had a negative impact on Byco Petroleum Pakistan Limited’s refinery throughput as well as refining margins.

However, the management made every effort to minimize the company’s exposure to the tough market.

Byco Petroleum is fully committed to improving its operating and financial performance in the future, said the press release.

February 26, 2019
FBR notifies rules for online monitoring of five major items

ISLAMABAD: Federal Board of Revenue (FBR) has notified rules for electronic monitoring of five goods in order to prevent sales tax evasion.

The FBR issued SRO 250(I)/2019 on Tuesday for electronic monitoring, tracking and tracing of production, import and supply-chain of the following goods, on real time basis, hereinafter referred to as the specified goods, namely:-

(a) tobacco Products;

(b) beverages;

(c) sugar;

(d) fertilizer; and

(e) cement:

Provided that any or all of the said specified goods above shall be monitored, tracked and traced in the manner provided in this Chapter from the date to be specified by the FBR, through a general order:

Provided further that the specified goods, if brought from non-tariff area as defined in the Federal Excise Act, 2005, shall be treated as imported goods for the purposes of this chapter.

The FBR said that goods to be affixed with tax stamps, banderoles, stickers, labels, barcodes, etc.

(1) On every package, including a tin, container or bottle, of the specified goods whether manufactured or imported shall be affixed or printed a tax stamp, banderole, sticker, label, barcode, etc., hereinafter referred to as tax stamp, in the manner prescribed under this Chapter:

Provided that in respect of such specified goods which are exempt or meant for export tax stamps shall not be required to be affixed thereon, but shall be clearly, legibly and indelibly marked as “Exempt Goods” or “For Export”, as the case may be.

(2) Every tax stamp required to be affued under these rules shall bear such security features as are approved by the Board in order to-

(a) prevent counterfeiting;

(b) enable accounting of production of the specified goods; and

(c) enable any person in the supply chain or an officer authorized by the Commissioner Inland Revenue to authenticate such tax stamp.

(3) The system for imported goods shall be installed in a designated area at the port of importation or a customs bonded warehouse, as the case may be, declared by the importer for this purpose, or any other place approved by the Project Director:

Provided that the Board may allow tax stamps to be affixed on any specified goods to be imported in a production facility in the exporting country, subject to such conditions as the Board may specify.

(4) No person engaged in manufacturing, sale or purchase or handling of specified goods shall remove or tamper with the tax stamp affixed thereon until these are sold to the final consumer.

February 26, 2019
Pakistan to strongly respond Indian aggression, NSC decides

ISLAMABAD: Pakistan on Tuesday decided to strongly respond to Indian aggression, which violated the airspace.

In this regard a special meeting of the National Security Committee was held. The committee strongly rejected Indian claim of targeting an alleged terrorist camp near Balakot and said India has committed an “uncalled for aggression to which Pakistan shall respond at the time and place of its choosing.”

The meeting chaired by Prime Minister Imran Khan here at the PM office, was attended by Ministers of Foreign Affairs, Defence, Finance, Chairman Joint Chiefs of Staff Committee, COAS, CNS, CAS and other civil and military officials.

The Prime Minister also summoned a special meeting of the National Command Authority on Wednesday – February 27.

Prime Minister Imran Khan directed that elements of national power including the Armed Forces and the people of Pakistan to remain prepared for all eventualities.

The meeting “strongly rejected Indian claim of targeting an alleged terrorist camp near Balakot and the claim of heavy casualties,” a statement from the PM House said.

“Once again Indian government has resorted to a self-serving, reckless and fictitious claim. This action has been done for domestic consumption, being in election environment, putting regional peace and stability at grave risk.”

The security forum said India has committed uncalled for aggression to which Pakistan shall respond at the time and place of its choosing.

The National Security Committee said the claimed area of strike was open for the world to see the facts on ground and agreed that the domestic and international media be taken to the impact site. The government also decided to requisition the joint session of Parliament to take all parties on board.

He also decided to engage with the global leadership to expose irresponsible Indian policy in the region.

The Prime Minister appreciated the timely and effective response of the Pakistan Air Force to repulse Indian attempt without any loss of life or property.

February 26, 2019
FBR notifies function, powers of intelligence directorate

ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday notified functions and powers Directorate General of Intelligence and Investigation under Federal Excise Act, 2005.

The FBR issued SRO 251(I)/2019 to notify following functions of the Directorate General, Intelligence and Investigation IR:

The functions of Directorate General of Intelligence and Investigation, Inland Revenue shall be:

a) to carry out intelligence activities or intelligence gathering on tax and duty related issues including non-declaration, under-declaration, non-payment of duty, duty evasion and revenue leakages through any other mean;

b) to collect third party information relating to financial transactions in ongoing inquiries and investigations;

c) to establish and develop linkages with all major national, provincial or other data bases to collect relevant information in ongoing inquiries and investigations;

d) to identify trends and modus operandi of Federal Excise Duty evasion and carry out inquiry and investigation to retrieve the loss of revenue;

e) to exercise powers of seizure of goods under the provisions of Federal Excise Act, 2005 and the rules made there-under;

f) to identify and investigate cases of duty evasion having any financial implication, punishable as an offence under the Federal Excise Act, 2005 and the rules made there-under;

g) to carry out criminal investigation and prosecution in cases involving offences

punishable under the Federal Excise Act, 2005 and the rules made there-under;

h) to share or disseminate actionable information or corroborating evidence, where required, through written reports or alerts to authorities or officers in the headquarter and field formations of the Federal Board of Revenue for further proceedings; and

i) to process complaints of tax and duty evasion etc.

February 26, 2019