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Tag: PTA

  • FPCCI seeks removal of protective duties on Pakistani products by Turkey

    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.

  • Exemptions, concessions cost Rs972.4 billion in 2018/2019

    Exemptions, concessions cost Rs972.4 billion in 2018/2019

    ISLAMABAD: The economy has incurred duty and tax losses to the tune of Rs972.4 billion due to exemptions and concessions during the fiscal year 2018/2019, according to Economic Survey 2018/2019 launched on Monday.

    The cost of tax exemptions included: income tax Rs141.6 billion, sales tax Rs597 billion; and Rs233.1 billion as customs duty.

    Income Tax:

    1. Tax credit for charitable donations u/s 61 Rs2.448 billion

    2. Tax credits u/s 64A Rs1.191 billion

    3. Tax credit u/s 64AB deductible allowance on education expenses Rs0.067 billion

    4. Tax credit for employment generation by manufacturers u/s 64B Rs0.0096 billion

    5. Tax credit for investment in balancing, modernization and replacement of plant & machinery u/s 65B Rs90.954 billion

    6. Tax credit for enlistment u/s 65C Rs0.356 billion

    7. Tax credit for newly established industrial undertakings u/s 65D Rs5.487 billion

    8. Tax credit for industrial undertakings established before the first day of July, 2011 u/s 65E Rs6.458 billion

    9. Tax credit u/s 100C Rs13.977 billion

    10. Tax credit for investment in shares and insurance u/62 Rs2.055 billion

    11. Tax loss due to exempt business income claimed by IPPs under clause (132) of Part I of the Second Schedule Rs18.034 billion

    12. Tax loss due to exemption to export of IT services under clause (133) of Part I of Second Schedule Rs0.608 billion

    Sales Tax:

    SRO Loss of sales tax due to exemptions projected for FY2019, based On July-March figures:

    SRO 1125(1)/2011, dated 31.12.2011 (leather, textile, carpets, surgical goods etc.) Rs86.7 billion

    Import under 5th Schedule Rs0.59 billion

    Local supply under 5th Schedule Rs53.5 billion

    Imports under 6th Schedule. Rs53.7 billion

    Local supply under 6th Schedule Rs247.3 billion

    Imports under 8th Schedule Rs62.7 billion

    Local supply under 8th Schedule Rs93.3 billion

    Customs Duty

    Concession of customs duty on goods imported from SAARC and ECO countries Rs348.8 million

    Exemption from customs duty on import into Pakistan from China Rs2.5 million

    Exemption from customs duty on import into Pakistan from Iran under Pak-Iran PTA: no loss

    Exemption from customs duty on imports into Pakistan from under SAFTA Agreement Rs1,614.8 million

    Exemption from customs duty on import into Pakistan from China Rs31,620.7 million

    Exemption from customs duty on goods imported from Mauritius Rs6 million

    Exemption from customs duty on import into Pakistan from Malaysia Rs3,162.7 million

    Exemption from customs duty on import into Pakistan from Indonesia under Pak-Indonesia PTA. Rs3,950 million

    Exemption from customs duty on imports from Sri Lanka Rs2,401.6 million

    Conditional exemption of customs duty on import of raw materials and components etc. for manufacture of certain goods (Survey based) Rs4,755.1 million

    Exemption of customs duty and sales tax to Exploration and Production (E&P) companies on import of machinery equipment & vehicles etc. Rs5,725.7 million

    Exemption from customs duty for vendors of Automotive Sector Rs26,604.4 million

    Exemption from customs duty for OEMs of Automotive Sector Rs38,818.8 million

    Exemption from Customs Duty on Cotton Rs2,275.9 million

    Exemption from Customs Duty for CPEC Rs1,009.2 million

    Exemption from Customs Duty for Lahore Orange Line Metro Train Rs749.1 million

    Chapter 99 Exemptions [Special Classification Provisions] Rs10,530.8 million

    5th Schedule Exemptions/ concessions Rs99,558.0 million

  • Customs unfolds bid to clear mobile phones on passengers’ stolen information

    Customs unfolds bid to clear mobile phones on passengers’ stolen information

    KARACHI: Pakistan Customs has unfolded a bid to steal the data of air travelers for the purpose of mobile phone registration with the Pakistan Telecommunication Authority (PTA).

    According to the details the customs staff posted Jinnah International Airport (JIAP), Karachi detained a person, who was fraudulently obtained data of air travelers including passport numbers for clearing mobile phones at customs stage and for clearing PTA restriction.

    As per regulations only PTA certified mobile phones are allowed to have active connection in Pakistan. In this regard passengers arriving from abroad are allowed to clear one mobile phone without payment of duty and taxes. However, more than one phone will attract levy.

    Details revealed that customs authorities recovered around 63 mobile phones from a passenger namely Muhammad Umar arriving from an international flight.

    The accused passenger entered details of passengers into the PTA system to get cleared the mobile phones without duty and taxes. The accused passenger managed to get clearance from the PTA for those 63 mobile phones.

    This was confirmed by Muhammad Faisal, Deputy Collector of Pakistan Custom.

    The customs official said that the authorities had lodged an FIR against the accused for smuggling cell phones and stealing information of passengers.

    Faisal said that the accused had indulged in clearing mobile phones by entering details of passengers including CNICs, flight number and passport numbers etc.

    The accused in his statement said that many travel agencies were involved in this scam.

    The customs official said that PTA had been requested to introduce bio-metric system for the clearance of mobile phones.

  • Electronic Market protests against duty, taxes on mobiles

    Electronic Market protests against duty, taxes on mobiles

    KARACHI: Karachi Electronic Market on Monday protested against levy of 100 percent duty and taxes on used imported phones.

    The levy has froze all trading activities at the mobile market, said Muhammad Rizwan, President, Electronic Market.

    The market demanded the government of withdrawing mandatory requirement of approval from Pakistan Telecommunication Authority (PTA). Rizwan said that revenue had not been increased with the PTA condition.

    The protesters hold placard and demanded that curbs on used mobile phones would increased unemployment.

  • FBR issues procedure for regularization of unregistered mobile devices

    FBR issues procedure for regularization of unregistered mobile devices

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday issued procedure for the regularization of unregistered mobile devices with SIM/IMEI functionality.

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  • Last day for non-compliant mobile phones

    Last day for non-compliant mobile phones

    ISLAMABAD – The Pakistan Telecommunication Authority (PTA) has reminded the public that today serves as the final day for non-compliant mobile phones to operate without any service interruptions.

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