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Tag: Dr. Hafeez Shaikh

  • Think tank discusses viability of reducing GST to five percent

    Think tank discusses viability of reducing GST to five percent

    ISLAMABAD: The second meeting of think tank on Saturday discussed the viability of reducing General Sales Tax (GST) from existing 17 percent to five percent on consumer goods to kick start consumer spending.

    Advisor to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Sheikh chaired the 2nd meeting of the Thinktank, recently constituted under the directions of Prime Minister, to deliberate on the Covid-19 related economic downturn and mitigation of ensuing risks.

    The forum discussed the need and scope for bailout package for large businesses and exporters apart from gauging the viability of reduction of GST on consumer goods, from 17 percent to 5 percent, to kick-start consumer spending for next two years.

    The constraints of FBR amid high revenue targets in a shrinking economy were highlighted by Finance Secretary. Decision in this regard would be made after detailed consultations.

    The forum has been mandated to provide platform for collective thinking on the emerging situation resulting from the Covid-19 related medical crisis and its spillover to economy.

    Its other members include Shaukat Tareen, Dr. Ishrat Husain, Dr. Ijaz Nabi, Sultan Ali Allana, Arif Habib, Dr. Waqar Masood. Advisor to PM on Commerce and Finance Secretary are also part of it.

    After extensive deliberations on emerging themes, the forum identified key areas for policy interventions, including monetary affairs and banking sector, fiscal matters and public finances, social safety nets, SMEs and large businesses, commodity prices, public health challenges and role of private sector and NGOs.

    Advisor to PM on Finance apprised the forum about developments at G-20 forum regarding debt relief package. There is potential for USD 1.8 billion debt deferment for one year under this, whereas proceeds worth USD 1.4 billion under IMF have already been received.

    Participants highlighted the need for further downward revision in policy rate coupled with passing on the benefits of slashed oil prices in global market to public. The focus of the deliberations remained on strengthening of aggregate demand and supply of the economy, with emphasis on lower income groups and small firms.

    Need for further liquidity for banks was discussed as strong and vibrant banking sector is essential to boost economy under such strong recessionary headwinds. Ways to further encourage remittances, agriculture financing and timely lifting of crops and vegetables from small farmers were analyzed.

    The progress of ongoing cash disbursements under Ehsas program were shared. The need for gathering reliable data on recently laid-off works and timely cash transfers to the most vulnerable were emphasized.

    Economists within the Think-tank stressed for the need of designing PSDP to facilitate labor intensive projects apart form crafting robust agriculture financing plans. The need for public private partnerships was elaborated to create fiscal space within public sector through these off-balance sheet financing arrangements which encourage private sector participation in public sector initiatives.

    Professionals within group stressed for the need of oil price hedging, power sector debt securitization and creation of fiscal space through rescheduling of foreign and domestic debts. The need for designing lending programs for housing sector participants came under consideration including facilitation of end-users. The massive scope for mortgage backed financing in Pakistan was also highlighted.

    Advisor to PM on Finance and Revenue took lead in picking most urgent themes for proper policy deliberations and decisions.

    He shared that Prime Minster of Pakistan may participate in the next session to give boost to the work of this Forum which has been constituted to provide intellectual and professional insights to the Ministry in designing and implementing incentives for economy in pragmatic fashion.

    Advisor decided that interventions with highest, medium and low impacts would be sorted out and aligned on the basis of short, medium and long term time horizons so that most essential tasks are pushed on priority basis, with proper funding and execution arrangements.

    It was also decided that international think-tanks will be engaged for cross-leaning for select policy making players in Pakistan so that robust interventions are designed to bring relief to economy and most deserving segments of public.

  • Rs100 billion released for tax refunds, duty drawback repayments

    Rs100 billion released for tax refunds, duty drawback repayments

    ISLAMABAD: In a bid to alleviate liquidity challenges faced by the industry, particularly in the aftermath of the COVID-19 pandemic and subsequent lockdowns, the government of Pakistan has disbursed a substantial amount of Rs 100 billion for the repayment of tax refunds and duty drawbacks.

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  • Economic managers discuss coronavirus impact

    Economic managers discuss coronavirus impact

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, advisor to the Prime Minister on Finance and Revenue, chaired a meeting on Monday the impact of the ongoing corona virus epidemic on the economy and the strategy to achieve the targets with maximum success.

    The meeting was held at the Finance Division to review the progress being made by the major sectors of the economy.

    Ministers for Energy and Economic Affairs Division, Chairperson FBR and Secretaries of Finance Division, Ministry of National Food Security and Research and Ministry of Commerce attended the meeting.

    The participants of the meeting shared the details of the ongoing major initiatives of their respective ministries and divisions, their current status of progress to meet the targets set during the current financial year, the impact of the ongoing corona virus epidemic on the economy and the strategy to achieve the targets with maximum success.

    It was agreed during the meeting that all sectors related with the economy will work in unison to achieve the economic targets with maximum effort and that the government will ensure that the common man is not affected by any adverse fallout of the epidemic.

  • Meeting discusses tax rates on immovable properties

    Meeting discusses tax rates on immovable properties

    ISLAMABAD: A meeting chaired by Dr. Abdul Hafeez Shaikh, adviser to the Prime Minister on Finance and Revenue, discussed proposals related to tax rates on properties, and realization of property valuation tables.

    The adviser met a delegation of Association of Builders and Developers of Pakistan (ABAD) in this regard.

    The delegation was represented by Hassan Bakhshi, various proposals were presented that could enhance and boost the property business in the country and improve tax collection for the government.

    The proposals were regarding taxation rates on property, building height restrictions in Karachi and rationalization of Property valuation tables and some other policy related exemptions that could help in smooth functioning of the property business and further accelerate the economic activity in the country.

    The adviser to the Prime Minister discussed the proposals in detail with the delegation and after taking the views of the Chairman FBR, assured the members of the delegation that all possible help will be provided to the sector keeping in view the principles of equity, transparency and fair play.

    The adviser said that he realizes the importance of the business and wants to engage more with the sector for better facilitation and understanding.

    He directed the delegation to further refine their proposals for a positive outcome and meet again in the second week of January so that the matters could progress ahead.

  • FBR to issue around Rs3 billion tax refunds in next couple of days: Hafeez Shaikh

    FBR to issue around Rs3 billion tax refunds in next couple of days: Hafeez Shaikh

    ISLAMABAD: Federal Board of Revenue (FBR) will issue another Rs2 to 3 billion tax refunds in next couple of days, Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue, said on Thursday in a meeting with leading businessmen.

    The adviser told the businessmen that FBR was working very hard to facilitate the exporters and another Rs 2 to 3 billion tax refunds would also be issued within the next couple of days.

    The meeting discussed and reviewed progress on the issues pertaining to payment of Sales Tax refunds to exporters.

    Adviser to Adviser Commerce Ali Habib, Chairman FBR Syed Shabbar Zaidi and Secretary Finance Naveed Kamran Baloch were also present in the meeting which was attended by leading exporters from Lahore and Karachi, including Shahid Soorty, Musaadiq Zulqarnain, Fawad Anwer, Shahid Abdullah, Bashir Ali Mohammad, Rizwan Dewan, Asif Tata, Ahmed Ibrahim, Sameer Chinoy and Khurram Mukhtar.

    During the proposals, various proposals were put forward from the businessmen and exporters and FBR was advised to work more aggressively on reforming and simplifying the processes through automation for early and prompt payment of sales tax refunds.

    He told the businessmen he had already constituted a committee comprising officials from FBR and members of APTMA to simplify the Form-H within the next few days to make it simpler and easy for the exporters claiming sales tax refunds.

    The businessmen were asked to nominate anyone they liked to become part of the Committee as he wanted to ensure a hassle-free submission of tax refund claims and their subsequent payment without any delay.

    The businessmen thanked the Adviser and his team in FBR for ensuring payment of Rs 32 billion sales tax refunds to the exporters in the last couple of days.

  • Economic environment becomes stable, international community recognizes: Hafeez Shaikh

    Economic environment becomes stable, international community recognizes: Hafeez Shaikh

    ISLAMABAD: Dr Hafeez Shaikh Adviser to Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh on Wednesday said that after 15 months efforts the economic environment of Pakistan becomes more stable as being recognized by international community.

    “We inherited a very grim economic situation with the debt levels and the fiscal and current account deficits reaching at the highest level, but through serious work and collaboration with international community, we have stabilised the economy and the international community is also recognising our efforts,” he said while addressing the inaugural session of the two-day conference arranged at a local hotel on the theme of “Rethinking Microfinance: Developing a New Inclusive Finance Compass”.

    The adviser said that an over US$ 1 billion investment in Pakistan’s bond market and a 238 per cent growth in the foreign direct investment in the first four months of this fiscal year which comes to $650 million, were reflection of an increased level of confidence the international community had begun to show in the Pakistani market.

    “Similarly, IMF applauding Pakistan for meeting all agreed structural benchmarks with comfortable margins in the first quarter, Bloomberg declaring Pakistan Stock Exchange as the world’s best performing market in last three months and now Moody’s upgrading Pakistan’s ranking from the negative to stable are positive developments and signs of the progress achieved on the economic front by the government,” he added.

    He further pointed out that the government also inherited the highest ever current account deficit of $ 20 billion but this massive current account deficit was contained and turned into a surplus for the first time in many years in the month of November.

    Similarly, the fiscal deficit adjusted for interest payment which is also called primary balance had also turned into a surplus in the first quarter of this year.

    Dr. Abdul Hafeez Shaikh also told the participants about government efforts to boost the exports which had previously shown negative growth for five consecutive years, but because of incentives given to exporters in terms of no taxes on export sector as well as subsidization of gas and electricity and grant of additional Rs 300 billion subsidized loans, the exports had gone up by 3.4 per cent during the first four months of current fiscal year with 9.6 per cent growth recorded in the month of November alone.

    “The government is working on a strategy to lead a transition away from a largely import-oriented economy to the one where the focus is on exports and earning of dollars to improve the quality of life of the common Pakistanis,” he said.

    Talking about the microfinance sector, the Adviser asked the conference participants to deliberate on how the cost of doing business could be reduced in terms of reduced rate of interest and the time lost in processes, and how one could increase access or scale up and how we could enhance the impact and what exactly the impact meant in terms of jobs and tackling poverty.

    “We also need to debate how we can keep learning as these are important questions that need to be debated and answered to formulate strategies for furthering growth in this sector,” he said.

    Meanwhile, Adviser to PM on Finance and Revenue Dr. Abdul Hafeez Shaikh also held a detailed interaction with a group of television anchorpersons in his office.

    During the informal discussion that continued for about two hours, the adviser briefed the anchors on the current state of economy with a focus on what state of economy the government inherited in 2018 and what policy steps and measures were adopted by the government for stabilisation of economy and subsequent success achieved in various areas, including 16.4 per cent revenue growth, 238 per cent growth in FDI, 3.4 per cent growth in exports in the first four months of this fiscal year as well as stabilisation of exchange rate, declaration of Pakistan Stock Exchange as the world’s best performing stock by Bloomberg and the upgradation of economic outlook of Pakistan from the negative to stable by the Moody’s.

  • Hafeez Shaikh directs FBR to simplify Form-H within a week, expedite sales tax refund payment

    Hafeez Shaikh directs FBR to simplify Form-H within a week, expedite sales tax refund payment

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue, on Tuesday directed Federal Board of Revenue (FBR) to simplify form-H within a week and expedite payment of sales tax refunds.

    He gave the instruction during a meeting with the office-bearers and members of All Pakistan Textile Mills Association (APTMA).

    Adviser to the Prime Minister on Institutional Reforms & Austerity Dr Ishrat Hussain, Adviser to Prime Minister on Commerce, Textile, Industry and Production Abdul Razak Dawood, Chairman Task Force on Textile Ali Habib, Chairman FBR Syed Shabbar Zaidi, former finance minister Shaukat Tareen and Secretary Finance Naveed Kamran Baloch were also present among others.

    Dr Abdul Hafeez Shaikh told the exporters that the government was not at all interested in keeping their money held up for any length of time and the government was willing to listen to and accommodate any solution or recommendations from the exporters to simplify the H-Form and ensure a prompt payment of sales tax refunds to them.

    He also directed the FBR to expedite the payment of nearly Rs 10 billion worth of customs duty drawback to the exporters.

    FBR Chairman Shabbar Zaidi told the meeting that FBR had so far received claims for sales tax refunds to the tune of Rs 10.14 billion pertaining to the period from July to October 2019 and cases amounting to Rs 8.02 billion had already been processed for payment out of which 1604 cases has been accepted for payment which would be made at the earliest.

    Earlier, the APTMA leaders and members told the Adviser they were happy and satisfied with the documentation drive of the government and wanted to process their claims for sales tax refunds through the newly-introduced Form-H.

    They said they had formulated their recommendations to further simplify the Form-H in view of certain problems being faced by them in filling out the form.

  • Hafeez Shaikh calls for early resolution of pending issues between PTCL, Etisalat

    Hafeez Shaikh calls for early resolution of pending issues between PTCL, Etisalat

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue on Thursday directed early resolution of pending issues between PTCL and Etisalat.

    Dr. Abdul Hafeez Shaikh has called for an early resolution of all outstanding issues regarding the PTCL privatisation with Etisalat and asked the stakeholders to finalise proposals on the subject within the next couple of weeks.

    He made this statement while chairing an Inter-Ministerial Committee constituted by the Prime Minister to discuss and resolve the issues related to the PTCL’s Privatisation.

    Minister for Privatisation Muhammad Mian Soomro, Minister for Information Technology Khalid Maqbool Siddiqui, Secretary Finance, Secretary Privatisation, Secretary Information Technology and Telecommunication and other senior officials were also present.

    During the meeting, the adviser was given a detailed briefing on the issues concerning the transfer of properties to Etisalat and the pending payments still to be made by Etisalat.

    The adviser called for greater efforts to resolve the outstanding issues in a smooth and amicable manner and asked the government team to contact the senior management of Etisalat to listen to their viewpoint and decide the unresolved issues at the earliest as any further delay was not in the interest of both the parties.

  • Tax system not to improve without documentation of economy: Hafeez Shaikh

    Tax system not to improve without documentation of economy: Hafeez Shaikh

    KARACHI: Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance and Revenue, on Saturday said that taxation system will not be improved without documentation of economy.

    He was addressing at a meeting with office bearers of Overseas Investors’ Chamber of Commerce and Industry (OICCI).

    He said that achieving economic growth was not possible without generating tax revenue. He said trade community should not fear with the condition of Computerized National Identity Card (CNIC) because without documenting the economy tax system would not improve.

    The adviser said that the prime minister was putting all his efforts to facilitate the business community with the realization that trade and business were backbone of the economy.

    Shaikh said that the government had overcome the economic challenges. The government is giving around Rs250 billion subsidy to manufacturers and exporters.

    In order to improve the taxation system of Federal Board of Revenue (FBR) the government is introducing large scale reforms.

    He further said that the government was taken all those steps to strengthen the institutions.

    Hafeez Shaikh said that the IMF had shown confidence on reform programs initiated by the government.

    The government has not borrowed from the State Bank during past four months. Besides the government also reduced the current account deficit, he added.

    He said that in order to facilitate the masses the government had not increased prices of petroleum products.

    The adviser pointed out improvement in stock exchange due to measures of the government regarding confidence building of investors.

  • Hafeez Shaikh terms agreement with traders to increase tax revenue

    Hafeez Shaikh terms agreement with traders to increase tax revenue

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, advisor to Prime Minister on Finance and Revenue, on Wednesday confirmed the agreement between the government and traders on various tax issues, including deferring the condition of Computerized National Identity Card (CNIC).

    “An agreement has been reached between the government and the traders community to increase tax revenue for growth and public development and to provide support for the traders and generate economic activity,” Dr. Hafeez Shaikh said in a tweet message.

    According to the agreement the government has relaxed the condition of CNIC on a single sale transaction above Rs50,000 for three months i.e. January 31, 2020.

    Following is the 11-point agreement that is shared by the advisor:

    01. The tax rate shall be lowered to 0.5 percent from 1.5 percent for traders having turnover up to Rs100 million.

    02. No liability on a trader having up to Rs100 million to collect / deposit withholding tax on transactions.

    03. Threshold of annual electricity bill of Rs600,000 for mandatory sales tax registration has been increased to Rs1.2 million.

    04. Turnover tax for sectors having lower returns will be revisted with consultation with traders associations.

    05. Tax issues of jewelers will be resolved in consultation with jewelers associations.

    06. The renewal license fees on middlemen will be revisited.

    07. To resolve traders taxation issues a desk at FBR headquarters will be set up with immediate effect. A BS-20/21 officer will be designated to resolve the traders’ problems.

    08. For new registration of traders a simple income tax return form in Urdu Language will be introduced. Trade associations will cooperation in FBR’s registration drive.

    09. Which trader will be exempted from registration having 1000 square feet shop will be decided by traders committees.

    10. The registration of those retailers engaged in wholesale business will be decided in consultation with traders community.

    11. The FBR will take no action on sales transactions without CNIC information till January 31, 2020.

    FBR_Trader agreement