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Tag: coronavirus

  • Sindh exempts property tax, motor vehicle tax to ease COVID-19 impact

    Sindh exempts property tax, motor vehicle tax to ease COVID-19 impact

    KARACHI: Sindh government has exempted property tax, motor vehicle tax and professional tax for three months of current fiscal year.

    The decision has been taken in order to provide relief to masses within the jurisdiction of Sindh considering outbreak of coronavirus (COVID-19).

    According to notifications issued on Thursday by Sindh Excise, Taxation and Narcotics Control Department, the provincial government has decided to remit 25 percent (i.e. for three months) of the payment of the property tax dues for the year 2019/2020, including surcharge as on March 31, 2020 from all classes of persons in respect of any category of property.

    The department said that the tax remission has been allowed for all the taxable property units. It further added that assesees who have already discharged their property tax liability for the year 2019/2020 will get an adjustment of 25 percent remission in their tax liability during next financial year i.e 2020-2021.

    Similarly, the provincial government has allowed exemption motor vehicle tax of 25 percent i.e. (for three months). The classes of vehicles have been granted tax exemption, included: loader; MCR (including rickshaw and Qingqi); mini bus; mini truck; pickup; coaster; delivery van; ST Wagon; taxi; and van.

    The provincial government said that the motor vehicle owners who have already discharged their motor vehicle tax liabilities for the year 2019/2020 of the above mentioned class of vehicle will get an adjustment in their motor vehicle tax liability during next financial year i.e. 2020/2021.

    Likewise, the provincial government is also exempted 25 percent (i.e. for three months) for the financial year 2019/2020 from the payment of the tax professions, trades, calling and employment.

    It said that the assessees who have discharged their professional tax liability for the year 2019/2020 will get 25 percent adjustment in their tax liability during the next financial year i.e. 2020/2021.

  • SBP issue guidelines to dampen COVID-19 effects, facilitates IBIs customers

    SBP issue guidelines to dampen COVID-19 effects, facilitates IBIs customers

    The State Bank of Pakistan (SBP) has issued comprehensive guidelines to help Islamic Banking Institutions (IBIs) mitigate the economic impact of COVID-19 on their customers.

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  • SBP allows banks to suspend dividend distribution for two quarters

    SBP allows banks to suspend dividend distribution for two quarters

    KARACHI: State Bank of Pakistan (SBP) has allowed banks to suspend distribution of dividends for two quarters as financial institutions may face loan infection amid COVID-19.

    The central bank in a statement on Wednesday said that the banks/DFIs in Pakistan have much higher capital levels than prescribed globally or minimum levels advised by the SBP.

    Accordingly, SBP sees no immediate signs of systemic capital fragility across the banking industry. “However, banks/DFIs have been advised to suspend the dividend distribution for the next two quarters.”

    The banks/DFIs that have approved dividend declaration for quarter ended March 2020 by 22nd April 2020 have been advised to suspend dividend distribution for June and September quarters 2020.

    “All other banks have been advised to suspend dividend distribution for March and June 2020 quarters.”

    “This important decision has been taken keeping in view uncertainty arising out of COVID 19 pandemic and probability of higher infections in loan portfolios of banks as a result of that,” the SBP said.

    This measure will also enhance loss absorption capacity of the banking system and will enable them to further support the real sector in Pakistan.

    Notably, while releasing prescribed capital buffers and taking other regulatory relief measures, a number of other jurisdictions across the globe have also placed moratorium on dividend distribution and payment of cash bonuses to senior/executive officers and material risk takers.

    The SBP is confident that the suspension of dividend payout will further increase the resilience of banking sector and improve their ability to provide much needed credit support to the real economy.

    SBP will keep on closely monitoring the performance of banks/DFIs under its regulatory domain and take appropriate action as needed to ensure safety and soundness of individual banks/DFIs and the overall banking system.

    The central bank in a statement on Wednesday said that amid the growing concerns of COVID – 19 pandemic, the SBP, thus far, announced a number of regulatory relief measures for the financial sector and real economy.

    These measures are primarily aimed at ensuring the safety and soundness of banking sector while enhancing their lending capacity to support the economic activities in the country.

  • CAA allows six charter flights on US embassy request

    CAA allows six charter flights on US embassy request

    KARACHI: The ministry of foreign affairs has allowed six private charter flights by the US Embassy to airlift passengers in the wake of coronavirus outbreak.

    According to an approval letter issued by the Pakistan Civil Aviation Authority (CAA) stated that the request of US Embassy had been approved by the competent authority to operate six special flights i.e. Sofia-Islamabad-Sofia through Omni Air incoming on April 21, 2020, Sharjah-Islamabad-Frankfurt through Atlas Air on April 22, 2020, Sofia-Islamabad-Sofia and Sofia-Karachi-Sofia through Omni Air on April 23, 2020 on April 25, 2020.

    The CAA said that the permission is subject to the condition that no disembarkation of flight crew shall be permitted from the aircraft upon arrival at both Islamabad International Airport, Islamabad and Jinnah International Airport, Karachi.

    The permission is also subject to full compliance with revised operational standard operating procedures issued through letter dated April 18, 2020 related to international passenger/charter flights.

  • Banks directed to take facilitation measures for PM Covid-19 relief fund

    Banks directed to take facilitation measures for PM Covid-19 relief fund

    KARACHI: State Bank of Pakistan (SBP) on Monday directed banks to take measures to facilitate donations for Prime Minister’s COVID-19 Pandemic Relief Fund 2020.

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  • PBC demands suspending collection of Sindh infrastructure cess

    PBC demands suspending collection of Sindh infrastructure cess

    KARACHI: Pakistan Business Council (PBC) has demanded the Sindh government of suspending collection of infrastructure to provide relief the industrial and businesses in the wake of coronavirus outbreak.

    In a letter sent to Sindh Chief Ministry Syed Murad Ali Shah, the PBC demanded the suspension of collections under the Sindh Development and Maintenance of Infrastructure Cess Act, 2017.

    The PBC is composed of country’s leading employers, including multinationals. PBC members, directly and through members in their value chains provide employment to more than two million individuals.

    The COVID-19 pandemic has severely impacted liquidity of businesses in Pakistan including those operating in Sindh.

    While PBC members are committed to retaining their direct employees and are also taking steps to ensure that livelihoods of employees in their supply chain are not adversely impacted, they do however, look towards governments for the maximum help to ensure that liquidity is available to pay these unusual expenses.

    “We are therefore writing to request you to initially suspend all collections under the Sindh Development & Maintenance of Infrastructure Cess Act 2017 till June 30, 2020. The exemption may be reviewed in June and extended if the crisis persists,” it said.

    The government of Punjab on April 02, announced the suspension of collections under the Punjab Infrastructure Development Cess Act 2015 till June 30th, 2020.

    The PBC hopes for a similar gesture from the Government of Sindh and requests that the announcement for the suspension of collections under the Sindh Development & Maintenance of Infrastructure Cess Act 2017 be made at the earliest.

  • IMF approves $1.38 billion for Pakistan to address economic impact of COVID-19 shock

    IMF approves $1.38 billion for Pakistan to address economic impact of COVID-19 shock

    KARACHI:  The Executive Board of the International Monetary Fund (IMF) approved the disbursement of $1.386 billion under the Rapid Financing Instrument to address the economic impact of the Covid-19 shock, according to statement received here late Thursday.

    With the near-term outlook deteriorating sharply, the authorities have swiftly put in place measures to contain the impact of the shock and support economic activity. Crucially, health spending has been increased and social support strengthened, it added.

    As the impact of the COVID-19 shock subsides, the authorities’ renewed commitment to implement the policies in the existing EFF will help support the recovery and strengthen resilience.

    The Executive Board of the International Monetary Fund (IMF) approved a purchase of Pakistan under the Rapid Financing Instrument (RFI) equivalent to SDR 1,015.5 million (US$ 1.386 billion, 50 percent of quota) to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic.

    While uncertainty remains high, the near-term economic impact of COVID-19 is expected to be significant, giving rise to large fiscal and external financing needs. The IMF support will help to provide a backstop against the decline in international reserves and provide financing to the budget for targeted and temporary spending increases aimed at containing the pandemic and mitigating its economic impact.

    The IMF remains closely engaged with the Pakistani authorities and as the impact of the COVID-19 shock subsides will resume discussions as part of the current EFF.

    Following the Executive Board discussion, Geoffrey Okamoto, First Deputy Managing Director and Acting Chair, made the following statement:

    “The outbreak of Covid-19 is having a significant impact on the Pakistani economy. The domestic containment measures, coupled with the global downturn, are severely affecting growth and straining external financing. This has created an urgent balance of payments need.

    “In this context of heightened uncertainty, IMF emergency financing under the Rapid Financing Instrument provides strong support to the authorities’ emergency policy response, preserving fiscal space for essential health spending, shoring up confidence, and catalyzing additional donor support.

    “In response to the crisis, the government of Pakistan has taken swift action to halt the community spread of the virus and introduced an economic stimulus package aimed at accommodating the spending needed to tackle the health emergency and supporting economic activity. Crucially, the authorities are increasing public health spending and strengthening social safety net programs to provide immediate relief to the most vulnerable. Similarly, the State Bank of Pakistan has adopted a timely set of measures, including a lowering of the policy rate and new refinancing facilities, to support liquidity and credit conditions and safeguard financial stability. In this context, the authorities’ policies should be targeted and temporary.

    “As the crisis abates, the authorities’ renewed commitment to the reforms in the existing Extended Fund Facility—in particular those related to fiscal consolidation strategy, energy sector, governance, and remaining AML/CFT deficiencies—will be crucial to entrench resilience, boost Pakistan’s growth potential, and deliver broad based benefits for all Pakistanis.

    “Expeditious donor support is needed to close the remaining balance of payments gap and ease the adjustment burden.”

  • SRB extends date for filing sales tax return up to April 30

    SRB extends date for filing sales tax return up to April 30

    KARACHI: Sindh Revenue Board (SRB) on Thursday extended the last date for filing sales tax returns for the month of March up to April 30, 2010 to facilitate taxpayers in the wake of ongoing lockdown to prevent coronavirus outbreak.

    The SRB issued a circular to extend the date for filing sales tax return for month of March 2020 up to April 30, 2020 from the exiting due date of April 18, 2020.

    The SRB also extended the date for payment of sales tax on services for the month of March 2020 up to April 27, 2020 from April 15, 2020,

    The Karachi Tax Bar Association (KTBA) requested the provincial tax authority to extend the date for filing monthly returns.

    The tax bar said that due to ongoing lockdown for prevention of coronavirus outbreak, the grant of date extension would help the taxpayers in discharging their liabilities.

  • FBR amends list for exemption on equipment for coronavirus prevention

    FBR amends list for exemption on equipment for coronavirus prevention

    In a continued effort to combat the COVID-19 pandemic, the Federal Board of Revenue (FBR) has issued an updated list of duty and tax-exempt items crucial for the prevention and control of the virus.

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  • So far 80,368 borrowers avail loan rescheduling facility

    So far 80,368 borrowers avail loan rescheduling facility

    KARACHI: State Bank of Pakistan (SBP) on Wednesday said that around 80,368 borrowers availed deferment of principal repayment facility, which was granted considering outbreak of coronavirus.

    The SBP said that under the relief package up till April 10, 2020 around 80368 borrowers benefitted from deferment of principal repayment worth Rs20 billion.

    Additional Rs 1.4 billion has been restructured. Meanwhile, 5126 application were under process, the SBP said.

    Previously, the SBP through a circular noted that banks and DFIs will defer the payment of principal on loans and advances by one year.

    To avail this relaxation, borrowers should submit a written request to the banks before June 30, 2020.

    They will, however, continue to service the mark-up amount as per agreed terms and conditions.

    The deferment of principal will not affect borrower’s credit history and such facilities will also not be reported as restructured/rescheduled in the credit bureau’s data.

    The total amount of principal coming due over the next year is about Rs. 4,700 billion.