Dr. Reza Baqir, the Governor of the State Bank of Pakistan (SBP), has called on the business community to reduce cash transactions to aid economic growth. Speaking to members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday, Dr. Baqir emphasized the importance of promoting transactions through the banking system.
(more…)Tag: FPCCI
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NAB not to process sales tax, income tax cases of business community
KARACHI: Justice Javed Iqbal, Chairman, National Accountability Bureau (NAB) has said that the bureau will not process cases of income tax and sales tax of business community.
He was talking with Engr. Daroo Khan Achakzai, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at a meeting, said a statement issued by FPCCI on Friday.
A delegation of FPCCI under the leadership of President FPCCI Engr. Daroo Khan Achakzai met Chairman NAB, Justice Javed Iqbal at NAB Head Quarter Islamabad.
During the meeting Engr. Daroo Khan Achakzai expressed his views that entire business community of Pakistan appreciates the role of NAB and the measures taken by it for transparency and curb the corruption of the country.
He said that business community is the backbone of the country contributing in economic development. NAB is business friendly institution that considers business community as its priority and addressing the issues.
Chairman NAB said that NAB would not process the cases of income tax and sales tax of business community and has ordered to return back all previous cases of business community to FBR as per law. He informed that he has ordered withdraw all notices served by NAB Multan on owners of flour mills of Multan, Bahawalpur and D.G Khan division. He said that he himself would review the notices of flour mills.
President FPCCI Engr. Daroo Khan Achakzai appreciated the personal efforts of Chairman NAB for looking into the of issues of entire business community. He thanked the Chairman NAB for the establishment of Special Cell for entire business community in NAB Secretariat.
Chairman NAB Justice Javed Iqbal also acceded to the request of President FPCCI for visiting the Federation House.
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FPCCI demands immediate release of export refunds, duty drawbacks
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded the government of issuing all outstanding export refunds, rebates and duty drawbacks.
In a statement issued on Tuesday, Engr. Daroo Khan Achakzai, President, FPCCI urged the Advisor to the Prime Minister on Finance & Revenue, Dr. Abdul Hafeez Shaikh to fulfil his commitments made, from time to time, particularly in the Finance Act, 2019 and release export sectors’ all accumulated refund claims including deferred Claims ; Customs Duty Drawback ; DLTL etc., lying pending for payment since long for facilitating and enabling environment to the exporters to overcome their liquidity crunch, meet their export orders well in time; enhance exports and reduce trade deficit so that the export targets as envisaged in the Finance Act, 2019 are met.
Referring to the Finance Act, 2019 the FPCCI Chief recalled that although a provision had been introduced wherein promissory notes would be issued to the Claimants at their option by a newly formed company called the FBR Refund Settlement Company Ltd., but there is a very slow progress in processing of the pending Sales Tax refunds and issuance of RPOs.
The FPCCI Chief appreciated Dr. Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance & Revenue and FBR for initiating Expeditious Refund System (ERS) for automated payment on generated Refund Payment Orders (RPOs) in the wake of withdrawal of zero-rating on Sales Tax inputs for five export oriented industrial sectors and also appreciated for providing Sales Tax refunds for manufacturing of five export-oriented sector, within 72 hours through Risk Management (RMS), however, lamented for the delay in implementation of these system.
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Business community condemns Indian illegal action
KARACHI: The business community has condemned India’s illegal actions, Indian atrocities and violation of rights of Kashmiri people.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), on behalf of entire business community, passed a resolution to condemn India’s illegal actions, Indian atrocities and violation of rights of Kashmiri people.
It said that India has made breach of all international laws.
According to resolutions of UNO, Kashmir is a disputed territory and actions taken presently by India are futile.
“We salute to government and Armed forces for their perseverance and consistent diplomacy in raising the issue,” the FPCCI said.
Business community of Pakistan whole heartedly expresses the solidarity with people of Kashmir and government as well.
Pakistan should send delegations to all international forums for raising the voice against this issue, according to the resolution.
FPCCI should inform to all business communities in the world by sending letters about ongoing Indian atrocities in Kashmir and should apprise to Indian Business community (FICCI), SAARC CCI, ICCIA and Other peace making institutions as well.
Business community of Pakistan appreciated the role of China, Malaysia, Turkey, Saudi Arabia and OIC for condemning the atrocities and oppressions of India with Kasmiri people.
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FPCCI urges government to resolve issues of small traders
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday urged the government resolves problems of small traders in order to keep the economy move forward.
Engr. Daroo Khan Achackzai, President FPCCI, S.M. Muneer, Iftikhar Ali Malik, Former Presidents, Senior Vice President and Vice Presidents, Mian Zafar of Faisalabad Small Traders Chamber, Dr. Noman Idrees Butt and Business Community of Pakistan strongly support new government initiative to efforts to document the economy and expanding tax net that will definitely boost socio-economic development and economic prosperity of the people of Pakistan.
The FPCCI always proactively engage with the government to bring foreign exchange through positive image of Pakistan and assures its support to help government on all economic fronts.
The business community while appreciating the Prime Minister endeavor to re-track economy of the Pakistan has also requested that being the policy of the PM to solve all issues with consultation and concentration by involving real stakeholder to invite businessmen especially small traders who are suffering seriously due to some measures announced in the federal budget.
Being the national institute of private sector the President FPCCI showed his serious concern on the problems of small traders and requests the prime minister to give us time and appointment to solve the latest burning issues on priority to keep the economy moving forward.
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FPCCI seeks removal of protective duties on Pakistani products by Turkey
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged Turkish authorities to remove protective duties imposed on Pakistani products.
“Turkey should remove local preventive in PTA/FTA with Pakistan,” said Engr. Daroo Khan Achakzai, President, FPCCI in a statement on Friday.
He said that in the past textile exports to Turkey was based on normal tariffs of imports but later Turkey imposed protective duties i.e. 18 percent which were very high, leading to decline in the earlier registered increase in the textile exports to Turkey.
The volume of bilateral trade between both nations drastically reduced from US$1.08 billion to US$792 million after imposition of protective duty on textile.
He appreciated the efforts of Government of Pakistan and Turkey to enter into Strategic Economic Framework (SEF) for enhancement of bilateral relations in trade, tourism, healthcare, hospitality, industry, education, housing, agriculture, aviation and banking.
He further stated that Pakistan and Turkey has concluded nine rounds of negotiations including SEF; but so far the reports/outcome of negotiation has been not shared with the concerned stakeholders.
He emphasized on the need of strong home-working of the government with the consultation of stakeholders for formulating list of concessionary items for FTA in trade with Turkey.
Turkey being part of customs union with the EU, providing assumption that Pakistan may also have access to Turkish market under GSP+ status.
This assumption was diluted due to refusal of Turkey to extend GSP+ status to Pakistan and Turkey proposed conducting negotiations on bilateral FTA between both countries.
The President FPCCI urged the government to resolve all antidumping and non-tariff barriers before entering into SEF.
Textile, rice, cutlery, crockery, badges, Musical instruments, surgical instruments, gloves, footwear, sports good, construction materials and leather products are the main exportable items of Pakistan that needs special market access to Turkey by reduction in tariff rates.
He also stated that Pakistan offer Turkish for their participation in special economic zones which may add to the quality competition in specific housing, food and pharmaceutical industries.
He also underlined the need of activation of train service with Turkey in order to reduce trade cost and transit time as trade through sea is not cost effective for both the nation.
He further added that Turkey should promote trade directly with Pakistan instead of third countries like importing of surgical items from Germany that are originally manufactured in Pakistan.
He also underlined the need of simplification of visa procedure for genuine businessmen and traders. He further added that Pakistan and Turkey both are active members of ECO, Developing eight and Organization of Islamic Countries (OIC). FPCCI will take up the above issues in the meeting between FPCCI and TOBB in the forthcoming meetings, he added.
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No compromise on documentation; PM refuses to withdraw CNIC condition
KARACHI: Prime Minister Imran Khan on Wednesday showed firm resolve to document the economy and flatly refused demands of business community to withdraw condition of CNIC on sales above Rs50,000.
Representatives of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) met the prime minister at the Governor House. The entire prime minister’s team of finance and commerce was also present at the meeting.
The business community urged the prime minister to withdraw the condition of CNIC at the time of sales, which was introduced through Finance Act, 2019.
Sources said that the Prime Minister had refused the demand and told the business community that the businesses had to be documented. The prime minister said requirement of CNIC / information on above Rs50,000 sales was quite justified.
The prime minister said that he wanted to see Pakistan grow on Turkish model. He further said that the government wanted to take along the business community on journey to growth.
Prime Minister Imran Khan told the business community that he had arrived Karachi to resolve problems of trade and industry. He said that the government wanted to ease in doing business.
Our priority to eradicate poverty and accelerate economic growth, he added.
After the meeting business community has expressed disappointment.
Mirza Ikhtiar Baig, senior FPCCI leader, while talking to media said that the apex body had presented all the problems at the meeting that are hampering the economic growth.
The prime minister has been informed about protests by small associations. He said that the FPCCI had urged the prime minister to restore zero rated for export sector.
He said that the interest rate by State Bank was on the rise and it would make difficult for industry to continue the production activities. On the other hand the FBR had also not withdrawn several levies on the export sector.
The prime minister has been informed that reforms should bring in phases.
Another meeting was held with export sector in which the prime minister listened to their problems. However, the export sector was also not happy to resolve their issues at the meeting.
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Income from Dubai-based properties declarable, not taxable in Pakistan: FBR
KARACHI: Federal Board of Revenue (FBR) has said that income generated from Dubai-based properties is declarable but not chargeable to tax in Pakistan.
Replying to query raised by business community at a seminar organized by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Asset Declaration Ordinance, 2019, said a statement on Friday.
In a query about rental income originated from Dubai-based properties IR CRTO team replied that double taxation treaty overwrote the domestic law and the UAE clearly stated that tax on rental income is charged by the country where income is originated hence rental income from Dubai-based properties are declarable but not chargeable in Pakistan.
During the awareness session, the IRS CRTO team led by its Chief Commissioner Shafqat Ali Kehar and consisting of Maqsood Jehangir, Commissioner IR Zone-IV, CRTO and Kashif Hafeez, Additional Commissioner IR Zone IV CRTO Karachi, made a multimedia presentation and elaborated salient features of the Assets Declaration Ordinance, 2019 and gave replies to various queries, ambiguities etc., as raised by the participants.
Regarding a query on Power of Attorney, it was replied that all immovable properties, which were transferred on power of attorney, would be declared as Benami property under the ADO, 2019 as the objective of the Scheme was to allow inclusion of non-documented economy in taxation system and to promote economic revival and growth by encouraging tax compliance.
The IR Team informed, “ADO, 2019 has been announced with the aim not to generate revenue but to document the economy in the background of Financial Action Task Force (FATF); revival and growth of economy through tax compliance.
The Team added, “ADO, 2019 is also applicable in undisclosed Assets and expenditures and sales and provides immunity from proceeding Under Section 111 of ITO 2011; the deadline will not be extended beyond 30-06-2019 ; tax can be paid in installment subject to default surcharge; Gold Jewelry, bearer prize bonds, securities, etc., are not required to declare, open plots, local immovable property etc., can be declared at higher cost of acquisition or 150 percent of FBR value or 150 percent of DC Value ; availability of carry forward facility of stock on 30-06-2018 to 2018-19 etc.
Engr. Daroo Khan Achakzai, President (FPCCI) hailed the Asset Declaration Ordinance (ADO), 2019 and termed it as a right step in the right direction with the objective to bring the tax evaders under the tax net; enhancing the country’s revenue base; documentation of economy; arresting the size of ever increasing black economy; mobilize resources and to bring dead assets in the mainstream of economy and make them functional.
He recalled that during the past six years, tax-to-GDP ratio has hovered between 9 percent in 2013-14 and 11.4 percent in 2017-18 to 10.8 percent in the current year 2018-19
The FPCCI Chief hoped that the government efforts to raise tax-to-GDO ratio to 12.6 percent in the next year (2019-20); documentation of economy and broadening of tax base would yield fruitful results as no economy can function without sufficient revenue collection and its thin tax base consisting of about two million assessees or 1 percent of total population has resulted in higher tax rates which provides sufficient incentive for tax evasion and corruption.
The FPCCI President informed that the ADO, 2019 had granted special treatment to the real estate sector and appealed to take advantage of tax amnesty scheme and document benami/ undeclared/ under-declared property and concede assets against concessionary tax payments.
The participants expressed their problem in filing of asset declarations due to non / partial functioning of FBR’s portal (IRIS).
They proposed for allowing Provisional Declaration of Assets by 30th June, 2019 and elaborated that the Scheme was announced only 45 days ago and as such the declarants who are not in a position to deposit cash due to liquidity crunch and filed declaration before 30-06-2019 may be treated as provisional and the assessees may be allowed to deposit the cash in bank accounts within 90 days.
They also proposed that at least 15 days may be allowed to incorporate or feed the declaration data in relevant Income Tax and Sales Tax Returns / profiles particularly when IRIS is not fully operationals and as such it will not affect at all the last date of declaration of assets.
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Prime Minister assures business community of considering sales tax zero rating
KARACHI: Prime Minister Imran Khan has assured business community of considering restoration of sales tax zero rating for export sector.
A delegation of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) met Prime Minister Imran Khan on Thursday in Islamabad to discuss anomalies in the Finance Bill 2019.
On FPCCI demand of restoration of SRO 1125(I)/2011 allowing five export oriented export sectors at zero rate, the prime minister assured to consider it sympathetically, said a statement issued by the FPCCI.
The FPCCI delegation was led by S.M. Muneer, leader of the business community and Former Chief Executive TDAP and Former President, FPCCI and consisting of Aqil Karim Dhedi; Engr. Daroo Khan Achakzai, President, FPCCI and Zubair F. Tufail, Convener of the FPCCI Budget Advisory Council – held a detailed meeting with the Prime Minister Imran Khan and Abdul Hafeez Shaikh, Advisor to the PM on Finance which lasted for 2 hours and discussed / briefed them about the hardships of the business community emanated from some harsh measures of the Finance Bill, 2019 that would give serious blow to trade and industry, especially export sector in the wake of exorbitant policy rate of 12.25 percent coupled with the massive devaluation of Pak-Rupee versus dollar in the last few months withdrawal of zero rated regime from export industrial sectors etc.
The FPCCI delegation particularly emphasized and discussed ten major demands out of which eight proposals have been accepted by the Prime Minister, the major one such as doing away with raid on any premises; reduction in tax rates for service sector; routing taxation and business related policy through Federal Government/Cabinet instead of FBR, as directed by the Supreme Court; lack of personal interaction and minimal possibility of abuse of discretionary powers by the tax officials; conduction of audit once in a three years etc.
Moreover the issues of retailers, wholesalers and real estates were also discussed in details.
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FPCCI may opt harsh decisions against proposed budgetary measures
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on has announced to take harsh decision against duty and tax measures proposed through Finance Bill, 2019.
At a pressing briefing on Wednesday, Engineer Daroo Khan, President, FPCCI said that the decision would include closure of business and trade activities in protest.
He said that the business community would share its reservations with the government. If the government declines to accept demands then option to protest is open, he added.
The FPCCI president said that budgetary measures had would create hardship for all including business community as well as general public.
The national chamber has identified many reservations on the budget 2019/2020. The apex chamber has constituted a committee on the Finance Bill, 2019.
Engr. Daroo Khan demanded the government to restore sales tax zero-rating for export sector. Further, he pointed out that hike in tariff of gas and electricity would also make difficult for business to continue.
He suggested the government that if it had been decided to abolish the zero rate regime then there must be assurance of releasing refunds.
He also demanded the government to restore provision of audit once in three years as Finance Bill proposed to empower tax officials to conduct audit of a taxpayer any or every year.
S M Muneer, leader of business community, however, said that the business community would not protest without meeting with government authorities.
He said that a delegation of FPCCI would hold talk with Dr. Abdul Hafeez Shaikh, advisor to Prime Minister on Finance and Revenue on June 20.
Muneer said that massive depreciation of Pak Rupee had created difficulties for businesses.
Zubair Tufail, former FPCCI president, said that the proposed budget would encourage smuggling of goods.
He said that banks should be asked for instant processing of refunds in case the zero-rating was abolished.
Mirza Ikhtiar Baig, business leader, said that the business community was meeting with people in the government and opposition.
He said that a delegation of Pakistan Peoples’ Party headed by its chairman Bilawal Bhutto Zardari was visiting FPCCI on June 22, 2019. But we are meeting first with the government tomorrow (June 21), he added.