Day: January 6, 2022

The Federal Board of Revenue (FBR) has proposed that the procedure of clearance of cargos at Border Customs Stations and Dry ports be tightened to minimize the risk of misdeclaration during the clearance process. Also, punishment has been suggested against the responsible staff in case of non-compliance.

The misdeclaration of goods by importers and exporters at ports is hurting the revenue and enhancing the risk of the movement of illegal products.

According to the proposed changes by the FBR, a procedure for the weighing of outgoing and incoming vehicles, the process of scanning, and the responsibilities of the staff posted at ports and border stations were clearly prescribed.

All outgoing and incoming vehicles carrying import, export, or transit goods will be weighed at a weighbridge inside the cargo terminal. The weighbridge operator will generate three copies (original, duplicate, and triplicate) of the weighment slip, according to the new proposed rules.

The weighbridge and scanner installed at terminals are integrated with a Customs Computerized System (CCS) with a respective WeBOC module.

The information on the weighment slip will include the date and time, IGM number, vehicle registration number, gross weight (of the vehicle and cargo), net weight, description of goods, type of cargo (import, export, or transit), number of wheels. All the weighment slips will be signed by the weighbridge operator and Customs inspector or the examiner overseeing the weighment process.

The original copy of the weighment slip will be given to the driver of the vehicle for submission to Customs to be uploaded in the Customs Computerized System (CCS), along with the Goods Declaration through the Clearing Agent.

The terminal operator posted at cargo terminal shall ensure that weighment is carried out properly and exact weights are recorded on the weighment slips. If re-checking reveals a discrepancy in the weight of a consignment, the terminal operator will face consequences under the Customs Act.

The terminal operator will maintain a record of all the weighments carried out vehicle-wise and date-wise, in both electronic and manual forms to be kept for a period of five years.

A Customs inspector or examiner will be posted to observe the scanning process on a real-time basis. The terminal operator will ensure that the scanning of both vehicles and cargo is carried out properly and with utmost care.

The terminal operator will ensure the installation of CCTV Cameras on all the sides of the scanning area showing the front and back images of a vehicle and will ensure the accessibility of footage to the concerned PA or Superintendent, or AC or DC, and AD or DD.

The scanner operator will either report suspicions or confirm the description of goods given in the export or import manifest or GD.

In case of any suspicions, the observations and remarks made will be recorded and the concerned Superintendent or PA, AC or DC, and AD or DD examiner will be informed for the conducting of a 100 percent examination, if necessary, of the suspected cargo and vehicle. In the case of export consignment, the scanning will only be carried after the filing of the GD.

The scanner operator will also provide hard copies of the scanned images along with the date and time, vehicle registration number, and container number, in case of containerized cargo, and observation or remarks in case of suspected cargo. The scanned images will be signed by the custom officer, inspector, or examiner and scanner operator, or a representative of the terminal operator.

The terminal operators at the cargo terminals will strive to integrate the weighbridges and scanners with the CCS so that the weighment and scanning data is uploaded on a real-time basis and linked with the respective GDs in CCS. In case rechecking reveals a discrepancy or misdeclaration in the description of any consignment either in its weight or the description of the goods, the proceedings will be initiated against those responsible in terms of the Customs Act, 1969, and the rules made thereunder. The concerned person will maintain records of all the weighments and scannings carried out vehicle and date-wise in electronic and hard copies, to be kept for a period of five years for any subsequent Post-Clearance Audits.

The terminal operator will provide access to the weighment and scanning process and will make CCTV cameras and screens available to the supervising officers for them to check the weighment and scanning processes in real-time.

At the time of daily reconciliation of incoming/outgoing vehicles, the weighment data may be crosschecked with those given in ODs. In case of a discrepancy, proceedings will be initiated against those responsible.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) has collected Rs. 730 million from those people who are involved with own-money associated with the vehicles business.

The Chairman of the FBR, Dr. Muhammad Ashfaq Ahmed, told the Senate Standing Committee on Finance Revenue and Economic Affairs that the FBR has proposed to enhance the advance tax to discourage on-money (premium) based on the recommendation of the Ministry of Industries and Production.

The FBR has reportedly proposed to enhance Rs. 100,000 from Rs. 50,000 for 1000cc vehicles, and Rs. 200,000 from Rs. 100,000 for 1001cc to 2000cc vehicles. Additionally, the tax department has suggested enhancing Rs. 400,000 from Rs. 200,000 for 2001cc and above vehicles.

The FBR has estimated a collection of more than Rs. 500 million in revenue from this proposal, and the committee members unanimously said that the prices of vehicles would increase from this advance tax.

Senator Mussadiq Malik said that the culture of on-money can be minimized if the supply of vehicles increases, and the Chairman of the Committee, Senator Talha Mahmood, asked why the supply of vehicles cannot be increased.

Dr. Ahmed said that the culture of on-money unfortunately stills exists in the country. The FBR will collect this withholding tax on the purchase, registration, and transfer of motor vehicles. The Ministry of Industries and Production can explain the reason for proposing this tax, he added.

Senator Mahmood decided to summon the Secretary of Industries to enquire the reason for the proposal of this tax.

The FBR had imposed the advance tax in June 2021 to discourage the on-money culture but the trend is increasing despite levying the advance tax from July 2021.

Source: Pro Pakistani

Prime Minister Imran Khan on Thursday said that the promise of providing low-cost housing to the poor segment of society is being fulfilled.

Chairing a meeting of the National Coordination Committee for Housing, Construction, and Development in Islamabad, the premier said the government is going to provide 12,400 low-cost and quality flats to the residents of Kachi Abadis of Islamabad.

The meeting was informed that Capital Development Authority (CDA) and Naya Pakistan Housing Authority (NAPHDA) will provide subsidies for these flats. All civic facilities will be provided in these flats, besides, monthly installments will be kept at the minimum level.

The prime minister stressed the need for constructing commercial buildings on a private-public partnership basis in the expensive sectors of Islamabad.

He said that a cricket stadium of international standards will be constructed in Islamabad. The prime minister said that the government has provided loans worth Rs. 38 billion rupees to the people to build their own houses.

The meeting was also briefed about the rise in the demand for loans from commercial banks, in the last two weeks, applications for loans worth Rs. 6 billion rupees have been received.

The premier further said that limits of all cities should be well defined to prevent their unplanned spread and to protect the environment.

Speaking about tourism, the Prime Minister said that there were ample opportunities for tourism in Azad Jammu and Kashmir (AJK) that should be availed. He also called for making stringent laws to stop illegal construction in the region.

The prime minister said quality and low-cost housing units will be constructed for refugees of Indian Illegally Occupied Jammu and Kashmir. The meeting was told that the AJK government will provide land worth Rs. 5.6 billion rupees for the construction of residences for refugees and in the first phase 1,300 families will be provided houses.

Federal ministers Shaukat Tarin, Fawad Chaudhry, Prime Minister of Azad Jammu and Kashmir Sardar Abdul Qayyum Khan Niazi Khan, Minister of State Farrukh Habib, Special Assistant to the Prime Minister Dr Shahbaz Gill, Governor State Bank of Pakistan, Azad Jammu and Kashmir ministers Sardar Tanveer Ilyas, Khawaja Farooq, Chairman Naya Pakistan Housing & Development Authority and other senior officials attended the meeting.

Source: Pro Pakistani

Systems Limited has expanded its operations in the heartland of the Arab world with the establishment of its 100 percent owned subsidiary in the Kingdom of Saudi Arabia, aimed at enhancing its footprint in the foreign markets.

The company has set up the headquarters of its subsidiary, Systems Arabia, in the capital city, Riyadh, and the core business team is already engaged and mobilized onsite.

The company has succeeded in signing a few projects and sees opportunity in this market, according to its quarterly financial report.

The subsidiary will boost the company’s exports and will further an upsurge in the export of skilled manpower to the kingdom as per its plan.

Systems Limited is also operating as an associated company in other countries of the Gulf region, including the United Arab Emirates and Qatar. It recently had an upsurge in the opportunities in the Middle East Region with Expo 2020. The addition of this new chapter will strengthen its presence with more business opportunities in Gulf-based conglomerates.

Systems Limited is one of the leading Information Technology companies in Pakistan that is also listed on the Pakistan Stock Exchange. It became Pakistan’s first technology company to cross the market value of Rs. 100 billion last year.

The company is also operating in the United States, the United Kingdom, and Australia as an associated company and subsidiary, and is bringing back focus on the European region.

It maintained handsome profitability in the three quarters of 2021, which stood at Rs. 2.52 billion with a year-on-year growth of 56 percent. Its export sales constitute roughly 80 percent of total sales.

Source: Pro Pakistani

A business delegation of Oman led by Engr. Redha Al Saleh, Chairman, Oman Chamber of Commerce & Industry visited Islamabad Chamber of Commerce & Industry and held B2B meetings to explore business collaborations with Pakistani counterparts.

The delegation was representing various sectors including trade, import/export, oil & gas, real estate, textiles & garments, tourism, information technology & telecom, agriculture and fashion designing. Ambassador of Oman to Pakistan Al-Sheikh Mohammed Al-Marhoon and Ambassador of Pakistan to Oman K.K. Ahsan Wagan also accompanied the delegation.

Speaking at the occasion, Engr. Redha Al Saleh, Chairman of Oman Chamber of Commerce & Industry said that the bilateral trade of around $500 million between Pakistan and Oman was not reflective of the actual potential of both countries and strong efforts should be made from both sides to take it to at least $1 billion.

He said that the geographical location of both countries offered them great potential to enhance business and investment relations as Oman was a gateway for Pakistan to access Gulf Cooperation Council (GCC) countries, Africa and other regional markets. Similarly, Pakistan was a gateway for Oman to access Central Asia, China and other markets. He said that many Pakistanis have invested in Oman and more should come. He said that many Pakistani products were reaching Oman through neighbouring countries and stressed that both countries should promote direct trade to achieve better results. He emphasized reactivating Pak-Oman Business Council to improve trade relations.

In his welcome address, Jamshaid Akhtar Sheikh, Senior Vice President, Islamabad Chamber of Commerce & Industry welcomed Oman’s delegation. He said that Pakistan and Oman can cooperate in many areas including agriculture, rice, seafood, meat, vegetables, fruits, dairy products, pharmaceuticals, textiles, cotton yarn, construction and petrochemicals.

He said that Gwadar and Salalah ports can be used to create a good communication channel and promote trade relations between the two countries. He said that the visit of Oman’s business delegation was a right step to improve business linkages between the private sectors of two countries. He urged that both countries should encourage regular exchange of trade delegations to explore all untapped areas of mutual cooperation.

Ambassador of Oman to Pakistan said that his country was keen to promote trade ties with Pakistan as both countries have good potential to cooperate in many areas for mutual benefit. He said that both countries were discussing starting a ferry service to link Pakistani ports with Oman, Dubai and other regional countries that would create more opportunities for bilateral trade promotion.

Ambassador of Pakistan to Oman said that the government of Pakistan was focused on a geo-economic strategy to promote Pakistan’s business and economic relations with foreign countries and hoped that the visit of Oman’s business delegation would promote bilateral trade relations between both countries. He said that foreign missions of both countries would work in coordination to promote linkages between entrepreneurs of both sides.

Vice President ICCI, Muhammad Faheem Khan, thanked Oman’s business delegation for visiting ICCI and hoped that their visit to Pakistan would promote business partnerships between the two countries.

Source: Pro Pakistani

The Pakistani Rupee (PKR) once again posted losses against the US Dollar (USD) in the interbank market today. It depreciated by 18 paisas against the greenback after hitting an intra-day low of Rs. 177.07 against the latter during today’s open market session.

It depreciated by 0.10 percent against the USD and closed at Rs. 176.92 today after halting movement and closing at 176.74 in the interbank market on Wednesday, 5 January.

The rupee reported losses against the USD less than 24 hours after the State Bank of Pakistan (SBP) amended the foreign exchange regulations and directed exporters to bring in foreign income proceeds within a maximum period of 120 days from the date of shipment.

The new measure was initially expected to positively impact foreign exchange inflows in the market but anything of the sort is yet to be successfully corroborated with in-progress financial indicators.

It should be noted that the federal government’s debt had swelled to an all-time high of Rs. 40.99 trillion during the first five months of the current fiscal year mainly due to the depreciation of the local currency and the State Bank of Pakistan’s (SBP) loan to the government against the allocation of Special Drawing Rights (SDRs).

In light of the PKR’s interbank performance during the trading hours earlier today, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, tweeted, “SBP through its circular has asked exporters to bring proceeds within 120 days VS 180 days previously. Narrowing of [the] number of days will initially speed up the pace of inflow, but won’t increase the receivables sizeably unless exports pick up. Hence, [the] impact will be thin”.

Conversely, the PKR reversed most of its losses against other major currencies in the interbank currency market today. It posted gains of seven paisas against the Euro (EUR), 49 paisas against the Pound Sterling (GBP), 74 paisas against the Canadian Dollar (CAD), and Rs. 1.28 against the Australian Dollar (AUD).

On the contrary, it lost four paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.

Source: Pro Pakistani

Discussing the Finance Supplementary Bill 2021 for the second consecutive day, the Senate Standing Committee on Finance recommended on Thursday withdrawal of the proposed 17 percent general sales tax (GST) on gold jewelry and also opposed the proposal to impose the same on milk formula.

The Senate panel meeting was held with Senator Talha Mahmood in the chair. Annoyed at the absence of Minister for Finance Shaukat Tarin, the committee members said they should reject the bill. The members and the Federal Board of Revenue (FBR) officials expressed their views, observations, and reservations on the proposals made under the bill.

Representatives of the Pakistan Jewelers Association told the committee that up to 180 tons of gold jewelry were traded in the country every year. The committee was informed that almost 80 tons of gold was smuggled into the country. The committee recommended taking back the proposed 17 percent GST on gold jewelry.

FBR officials informed the committee that out of 36,000 jewelers in the country, only 54 were on the active taxpayer’s list. They further apprised the committee of the stringent regulations on the import of gold and said that the regulations had led to its smuggling. The committee members expressed serious reservations over such a large number of unregistered jewelers.

Senator Farooq Hamid Naek said 137 out of 1000 infants in Pakistan passed away due to lack of proper nutrition and said they won’t let the government impose a tax on formula milk.

FBR officials said the use of formula milk had become a fashion and it was available in the market in the price range of Rs. 600/kg to Rs. 1400/kg. They pointed out that formula milk would be available at subsidized rates if bought on a doctor’s prescription.

FBR officials also informed that Track & Trace System to cover tobacco manufacturing would soon be extended for sugar, fertilizer, cement and beverages industry, and petroleum products.

Earlier in the meeting, the Drug Regulatory Authority of Pakistan (DRAP) representative informed the meeting that the prices of registered drugs would not increase despite the new GST regime. However, the committee was informed that prices of drugs of nutritional value would increase due to the 17 percent sales tax.

The meeting was attended by the Leader of the House in the Senate, Senators Dr Shezad Waseem, Zeeshan Khanzada, Farooq Hamid Naek, Saleem Mandviwalla, Sherry Rehman, Mohsin Aziz, Kamil Ali Agha, Musadik Malik, Dilawar Khan, Anwaar-ul-Haq Kakar, Faisal Subzwari and Faisal Saleem Rehman. Chairman Federal Board of Revenue (FBR), member FBR and senior officials of the attached departments also attended the meeting.

Source: Pro Pakistani

A 22-member delegation of Omani businessmen, led by Chairman Oman Chamber of Commerce and Industry Redha Juma Mohamed Ali Al Saleh, and comprising Pakistani businessmen in Oman, called on Prime Minister Imran Khan on Thursday. After 20 years, this is the first time an Omani business delegation is on a visit to Pakistan to explore business and investment opportunities.

The delegation observed that the business-friendly policies of the current government created great opportunities for investors in tourism development, fisheries sector, warehousing, and storage facility development in port cities, and the development projects in Gwadar.

The delegation also showed keen interest in the investment opportunities in ferry service connecting Oman, coastal cities of Pakistan, CPEC [China-Pakistan Economic Cooridor] projects, especially industrialization of Gwadar, agriculture sector, and a proposed corridor comprising land and sea routes between Oman and Pakistan to connect the Middle East, Central Asia, Africa, and South East Asia with Pakistan at its pivot.

The contribution of the Pakistani diaspora during the COVID pandemic and the assistance provided by the Kingdom of Oman in the release of Pakistani prisoners in Oman were also highlighted in the meeting.

The two sides agreed to enhance cooperation in the areas of common interest while taking steps to improve mutual trade.

Prime Minister Imran Khan directed the government entities concerned to take the steps required for increased cooperation in the areas of trade and investment between Oman and Pakistan.

Federal Ministers Shaukat Fiaz Tarin, Makhdoom Khusto Bakhtiyar, Advisor to Prime Minister Abdul Razzaq Dawood, Special Assistant to Prime Minister on CPEC Khalid Mansoor, Chairman Board of Investment Azfar Ahsan, and officials concerned attended the meeting.

Source: Pro Pakistani