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Anti-Benami transactions rules notified as per law: FBR

ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that Benami Transactions (Prohibition) Rules, 2019 has been issued in accordance with the law.

The FBR issued a rebuttal on a news item published in a daily on February 5, 2020 about the issuance of Benami Transactions (Prohibition) Rules, 2019.

FBR has explained that Benami Transactions (Prohibition) Rules, 2019 under Benami Transactions (Prohibition), Act, 2017 were notified through SRO. 326(l)/2019 dated 11th March, 2019 by Dr. Hamid Ateeq Sarwar, Additional Secretary (IRS/BS-21 Officer).

He is also holding the charge of Member (IR-Policy), FBR (HQ) since 4th December, 2018 vide FBR’s Notification No. 2236-IR-I/2018.

It is further clarified that all the Members of FBR hold the ex-officio rank of Additional Secretary as per Establishment Division’s Notification dated March 18, 1987.

It is pertinent to mention at the time of issuance of instant SRO Mohammad Jehanzeb Khan (BS-22 officer of PAS) was holding the charge of Chairman, FBR / Secretary Revenue Division.

After final vetting of Benami Transactions (Prohibition), Rules 2019 by Law & Justice Division and approval of the same by Cabinet Committee for Disposal of Legislative Cases (CCLC), the Summary containing the Benami Transactions (Prohibition) Rules, 2019 was moved by Mohammad Jehanzeb Khan Chairman, FBR / Secretary Revenue Division for the approval of Federal Cabinet.

The whole process of issuance of SRO and initiation of Summary for approval of Federal Cabinet is in legal conformity.

February 5, 2020
Shabbar Zaidi still chairman, to resume charge after leave: FBR

ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that Syed Shabbar Zaidi is still Chairman of the FBR but he is on leave.

While clarifying new reports about the vacancy of office of Chairman, FBR, Dr. Hamid Ateeq Sarwar, Spokesperson for the FBR / Member (IR-Policy) clarified that Syed Muhammad Shabbar Zaidi, Chairman, FBR is on medical leave and he will assume the charge of Chairman, FBR as soon as he gets medically fit.

However, the position of Chairman, FBR during the leave period of Syed Muhammad Shabbar Zaidi is not lying vacant and Ms. Nausheen Javaid Amjad (IRS/BS-22 Officer) is holding the Look After Charge of the Chairperson, FBR as notified by FBR’s Notification No. 0184-IR-I/2020 dated January 31, 2020.

February 5, 2020
Hapag Lloyd revises requirement of NTN for Pakistan imports

KARACHI: Hapag Lloyd has revised its announcement and now requirement of National Tax Number (NTN) of Pakistani importers is not mandatory any more, according an official memorandum of Karachi Customs Agents Association (KCAA).

According to the official memorandum, the KCAA informed its members that in the previous announcement by the Hapag Lloyd regarding mandatory requirement of NTN of importer on Import Bill of Lading.

KCAA initiated immediate action and approached the Competent Authority of MCC-Preventive and concerned Shipping Association i.e. PSAA and APSA.

“Due to efforts of KCAA, the Hapag Lloyd has revised the announcement on their website and the requirement of NTN of importer is not mandatory anymore,” it said.

Since only Container Ownership NTN field is appearing in the Pakistan Customs online system hence only Container Ownership NTN is required.

Hapag Lloyd has updated the mandatory requirement for bills of lading to Pakistan.

As per our previous announcement related to Pakistan Customs advisement of the required Importer National Tax Number (NTN), we understand that only Container Ownership NTN field is appearing in the Pakistan Customs online system and there is no field added related to Importer NTN.

Therefore, only Shipper Own Container, SOC, unit NTN and Tariff for local charges, free time and detention tariff on the bill of lading will be implemented at this time.

Once we receive notification that Pakistan Customs is ready for the Importers NTN, we will keep you updated accordingly.

Presently, following two requirements of import bills of lading are implemented for Pakistan.

1) Mandatory requirement to update Container Ownership NTN # (National Tax Number) on Bill of Lading for Shipper Own Container, SOC, units effective January 15, 2020.

According to Pakistan Customs, all Carriers are bound to file Customs manifest including Container Ownership NTN# for Carrier Own Container and SOC units for each shipment.

The Consignee NTN number is to be updated on the Bill of Lading which is released by origin office for SOC unit.

All customers are requested to please provide your local importer NTN number along with the importer name and address while submitting the SI (Shipping Instructions) for SOC units.

Pakistan Customs will not accept the manifest if the NTN number is missing.

As per Customs rule, a non-manifested unit is not allowed to discharge at Pakistan and will remain on board at customer’s risk, cost and responsibility.

2) Publication of Tariff on Bill of Lading Related to Local Charges / Free Time / Detention Tariff

Effective immediately, according to Pakistan Customs Rules 2001 amended in Responsibilities of Licensee for imports into Pakistan, the Carrier is to update all local collect charges other than freight on the Bill of Lading itself. The Carrier must also state on the Bill of Lading the agreed free days and detention tariff per container.

All shipments which will be discharged in Pakistan for clearance or in transit to Afghanistan, must reflect the required charges details.”

February 5, 2020
KTBA members asked to report privately hired persons by tax officials

Karachi: The Karachi Tax Bar Association (KTBA) has issued an urgent call to its members to report any instances of tax officials hiring privately employed individuals for assistance. This move follows a strict condemnation from the Federal Board of Revenue (FBR) against the practice, warning that it could result in disciplinary action for the officers involved.
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February 5, 2020
Shabbar Zaidi urged to continue as FBR chairman

KARACHI: A tax bar has urged Shabbar Zaidi to continue as chairman of Federal Board of Revenue (FBR) for betterment of Pakistan’s tax system.

“Truly speaking there are hundreds of other growth signals which should not be disregarded but to convey my message as well as discharging my basic responsibility precisely, I just need to request you that our country needs a sincere and bright person like you to continue striving hard for betterment and a sustainable tax system for growth of the economy,” said Ahmed Nasir KK, Advocate and President of Mirpur Khas Tax Bar Association (MTBA).

The tax bar said that with due respect on behalf of my bar members and common taxpayers being represented through Learned Advocates, Tax Consultants including myself, I would like to convey you the true and lasting desire and hope of the business as well legal fraternity, that whatever the circumstances may be, this tax system needs complete reformation as well as a True, Wise, Eligible and sincere Leadership like your kind honor.

It said that under the chairmanship of FBR, Shabbar Zaidi has achieved unprecedented targets, including significant growth in number of fillers, and revenue collection.

Moreover, the tax bar said that the number of taxpayers had been increased just due to sincere efforts of Shabbar Zaidi.

Previously lasting corrupt practices inside FBR like frequent bank account attachments without merit, which badly affected and almost ruined the confidence of business community as well the thoughts and trust of new possible filers were put to an end by your good self.

February 5, 2020
FBR urged to withdraw date extension notification for audit completion

KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday urged the Federal Board of Revenue (FBR) to withdraw a notification issued allowing tax offices to complete audit related to past year.

In a letter to FBR Chairperson, the KTBA pointed out selection of audit through Section 214C of Income Tax Ordinance, 2001 and said that courts had ordered the tax authorities to complete audit of selected cases within the year for which year a case was selected.

The tax bar said that tax offices had intimated taxpayers that the audit wing of the FBR condoned the time limit for completing audit in 459 cases related to tax year 2014 up to June 30, 2020.

The tax bar pointed out that as per Audit Policy 2015 which governed audit cases selected for tax year 2014 had clearly mentioned: “the cases selected during a financial year would be disposed of during the same year.”

It is further stated that the audit policy 2015 was challenged in the Lahore High Court in 2017 and the court allowed the completion of audit time limit up to June 30, 2019. An intra court appeal was filed against the judgment, where a division bench extended the cut-off date to December 31, 2019.

The KTBA further highlighted a reported judgment Supreme Court of Pakistan in which the apex court observed: “… while an extension could be granted by the FBR for conducting and audit, the same should be supported by application of mind, appropriate reasoning and could not be granted casually, repeatedly or as a matter of routine.”

The tax bar said: “FBR has allowed the time period for completing the audit, all by itself, till June 30, 2020, through its latest circular … The extension, which has been issued completely on its own motion by the FBR, has been give to all the pending 459 cases audits of tax offices in Karachi.”

It said that the extension is in total contravention of the findings and directions of the Supreme Court, which laid down the principles.

It further said that extension granted in the 459 cases will open the floodgate of litigations against the State.

The KTBA said that the tax bar associations in the country should be taken into the folds before any decision of the sort are taken, which are prone to become contentious and consequently subject of litigation.

February 5, 2020
ECC approves Rs700 million for Postal Life Insurance

ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved an amount of Rs700 million as initial paid up capital for Postal Life Insurance.

A statement said that In order to register Postal Life Insurance as Public Limited Company, ECC approved an amount of Rs 700 million as initial paid up capital.

The amount shall be allocated by the Finance Division and transferred to the proposed Postal Life Insurance Company.

After the approval Postal Life Insurance shall fall under the regulatory frame work of the Securities and Exchange Commission of Pakistan.

Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh chaired the meeting of Economic Coordination Committee (ECC) of the Cabinet here at the Cabinet Division.

ECC also approved the Creation of Digital Media Wing in the Ministry of Information and Broadcasting. The purpose of the Wing shall be to effectively counter the fake/libelous news and highlight the development agenda of the government.

The ECC directed the MoI&B to move ahead for the creation of the wing by using its already available resources.

ECC also approved the amendment in SRO 192(1)/ 2019 dated 11-02-2019 extending exemption from regulatory duty to export oriented units.

ECC considered and approved the grant of amount Rs 153.25million from the budget of the Ministry of Finance, as technical supplementary grant for the Ministry of Interior, to be given through the Office of the Deputy Commissioner of Islamabad, for compensation to the victims of suicidal attack at District courts F-8 Islamabad on 03-3-2014.

Finance Division supported the proposal in compliance with the orders of the Honorable Supreme Court of Pakistan.

ECC gave approval to the transfer of funds amounting to Rs 31.5 million in equivalent foreign exchange from the Ministry of Interior to the Ministry of Defence as Technical Supplementary Grant for the logistic support for the maintenance of Cessna aircrafts.

ECC was attended by Federal Ministers for National Food Security and Research, Railways, Energy, Privatization and other senior officials of the different Ministries.

February 4, 2020
Stock market stages recovery of 475 points

KARACHI: The stock market made recovery of 475 points on Tuesday as stocks of banking sector registered gain during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,884 points as against 40,409 points showing an increase of 475 points.

Analysts said that the market staged a recovery after a major draw down of 1222 points yesterday and largely remained positive throughout the session barring -60 points earlier in the session.

Overall, the Index moved up by 544 points and closed the session at +475 points.

Banking sector played an important role in market recovery MCB’s result announcement further helped the other banking sector stocks to post gains.

Resultantly, Banking sector posted trading volumes of 27.1 million shares, followed by Cement (21.7 million) and O&GMCs (19.9 million).

Among scrips, BOP topped the charts with 16.4 million shares, followed by HASCOL (15.7 million) and UNITY (8.3 million).

Sectors contributing to the performance include Banks (+217 points), Power (+83 points), Fertilizer (+62 points), Cement (+44 points) and O&GMCs (+33 points).

Volumes declined from 203.3 million shares to 146.1 million shares (-28 percent DOD). Average traded value also declined by 33 percent to reach US$ 39.7 million as against US$ 59.2 million.

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

Stocks that contributed positively include MCB (+84 points), HUBC (+67 points), ENGRO (+47 points), UBL (+44 points) and BAHL (+30 points). Stocks that contributed negatively include PAKT (-27 points), PPL (-17 points), HBL (-8 points), JLICL (-5 points), and INDU (-3 points).

February 4, 2020
FPCCI demands stop proposed gas price hike

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday demanded the Prime Minister to stop implementation of proposed hike in gas tariff.

FPCCI President Mian Anjum Nisar in a statement strongly criticized the move to increase gas prices and urged Prime Minister Imran Khan to immediately stop the implementation of the proposal.

He said that the proposal of the Ministry of Petroleum would seriously affect the industrial sector, especially exporters and value-added sector would be hit hard.

President FPCCI has expressed his apprehension that accelerated gas prices will also affect the cost of energy as well as the cost of production of exportable goods.

It will also hamper the competitiveness of the industry in International market, where industry is already facing severe problem on different fronts.

He further added that this hike will increased the misery of the common people who are already facing 14.6 per cent headline inflationary pressures and lower purchasing power due to dollar Rupee parity as well as the commercial and industrial consumer would not be able to absorb it.

Gas prices have already increased 31 percent last year. Earlier OGRA proposed 214 percent hike in gas prices however; the ECC had deferred the proposal to increase the gas prices during the last meeting.

Mian Anjum Nisar President Federation of Pakistan Chambers of Commerce and Industry also stated that the economy of Pakistan is not in a position to absorb such sudden and large shocks.

Pakistan’s exports are not expanding and are still below targets. At this stage increase in energy cost will definitely further destabilize economic environment which is already under pressure.

Pakistan need to maintain price stability particularly for manufacturing and export- oriented sector so that economy remain on track for which present government is struggling hard.

President FPCCI strongly urged the government to withdraw the proposal of the increase in Gas tariff otherwise; industry will face closing down which will ultimately result in unemployment and labour unrest.

February 4, 2020
Karachi Chamber welcomes ease in US, UK travel advisory for Pakistan

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Tuesday welcomed the decision of United States and United Kingdom for easing travel advisory for Pakistan.

KCCI president Agha Shahab Ahmed Khan in a statement said that the Karachi Chamber has been widely demanding relaxation in travel advisory and it was really heartening to see that the travel advisories have finally been eased by both these countries which would surely bring the people, particularly the business communities, more close to each other.

“During the visit of every single diplomat throughout year, Chairman Businessmen Group Siraj Teli and all Office Bearers have been vocally urging the world community to ease travel advisories for Pakistan particularly Karachi.

“We are very delighted to see that US and UK have relaxed their travel advisories and hope that more such announcements will be made by other important countries, particularly those from the European region as the security situation in Pakistan is much better now and it is a safe and secure destination for foreign investors and visitors,” he added in a statement issued.

Agha Shahab, while terming it ‘a step in the right direction’, commented that this clearly indicates that the US and UK have realized the improved security situation in Pakistan thanks to the untiring efforts made by Law Enforcing Agencies who struggled really hard to cleanse Pakistan from the menace of terrorism and lawlessness.

“After this positive news, the business and industrial community of Karachi expects improved trade and investment ties with the businessmen and investors from US and UK which was badly needed to deal with the ongoing economic crises being faced by the country,” he said while urging the business communities of the two major economies to come forward and visit Pakistan which offers immense trade and investment opportunities in almost all the sectors of the economy.

He said that foreign investors from US and UK looking forward to invest or undertake joint venture in Pakistan must at least pay one visit to Karachi in order to see the ground realities themselves instead of relying on media reports which are usually exaggerated to create hype.

Karachi is the financial, industrial and commercial hub of Pakistan contributing more than 70 percent revenue to the national exchequer.

February 4, 2020