Day: June 26, 2022

The Federal Board of Revenue (FBR) has reduced capital value tax (CVT) on vehicles from 2 percent to one percent under the amended Finance Bill 2022.

Under the Finance Bill 2022, the FBR has proposed a levy of tax on the capital value of certain assets. A tax shall be levied, charged, and collected, to be called the capital value tax 2022 on the value of assets at the provided rates. The capital value tax shall be charged on the motor vehicle held in Pakistan where the value of the motor vehicle exceeds Rs. 5 million.

The FBR has also provided the procedure to determine the value of the vehicles. In the case of motor vehicles, where the vehicle is imported in Pakistan, the import value assessed by the Customs authorities is increased by customs duties.

Where the vehicle is manufactured or assembled locally in Pakistan, the value at which the motor vehicle is sold by the local manufacturer or assembler.

Where the vehicle is auctioned, the auction price; or in any other case, the total consideration paid to acquire, alter or improve the vehicle; the value of the motor vehicle mentioned shall be reduced by ten percent for each year from the end of the financial year in which the motor vehicle is acquired.

The Collector of Customs shall collect tax at the time of import of a motor vehicle on the import value as increased by customs duties at the rate specified.

Local manufacturer or assembler shall collect tax from the buyer of the motor vehicle on sale value at the rate specified in the First Schedule, FBR added.

Source: Pro Pakistan

Pakistan Telecommunication Authority (PTA) has warned Zong and Jazz to comply with the Quality of Service (QoS) requirements in accordance with the applicable regulatory framework while imposing a fine of Rs. 0.2 million on Zong.

A panel comprising PTA Chairman Amir Azeem Bajwa and Member Compliance and Enforcement Dr Khawaja Siddiqui Khokhar issued the order against Pakistan Mobile Communication Limited, commonly known as Jazz, and China Mobile Pakistan Limited (Zong).

The Authority issued show-cause notices “Failure to meet or exceed QoS standards as laid down in the license and Key Performance Indicators (KPIs)” to both operators.

Jazz QoS Performance

In order to measure the QoS performance of Jazz, a joint survey was carried out from October 26, 2020, to October 27, 2020, at Warsak & Charsadda Roads, Peshawar. During the survey, it was revealed that 4G/LTE signal strength, service accessibility, and call completion ratio were not meeting the licensing standards.

Accordingly, the survey results were shared with the licensee vide letter dated October 29, 2020, with the direction to improve the services up to the licensing standards and include the area in the 4G/LTE future rollout plan. The licensee was required to submit a compliance report by November 20, 2020.

In response thereof, the licensee vide email dated November 29, 2020, provided the reasons for the shortfalls/degradation in QoS stating that approx. 6 km patch is not covered due to the non-availability of LTE layer on two sites, and the same is planned to be upgraded in 2021.

In light of the response received from the Jazz, a resurvey was carried out independently at the said areas where it was observed that, contrary to the claim of the licensee, some of the QoS KPIs are persistently below the standards stipulated in the license.

Since the above said QoS results were not within the parameters of the license conditions and QoS Regulations, therefore, a show-cause notice (SCN) under section 23 of the Act on January 17, 2022, was issued whereby the licensee was required to remedy the contravention by bringing and maintaining the required standards of quality of service within fifteen (15) days and to explain in writing within thirty (30) days of the issuance of SCN.

Upon the receipt of SCN, the licensee again conducted drive tests of the given area on January 18, 2022, and found no anomaly or shortfall in this regard on the survey route. Instead, the CSSR, MOS, and RSRP 4G were found at par with license conditions. Survey results clearly indicate that there is no shortfall or breach of any KPIs as alleged in the aforesaid notice

Keeping in view the facts coupled with the available record, it is concluded that though the licensee has upgraded QoS KPIs at Charsadda and Warsak Roads. However, the call setup success rate still required improvement at Charsadda Road, Peshawar. Considering the progress in observing the QoS standards, the Authority issued a warning to the licensee with the direction to comply with the QoS requirements in accordance with the applicable regulatory framework.

In case of failure to comply with the regulatory compliance with regard to Quality of Service Standards, legal proceedings will be initiated against the licensee as per applicable laws.

Zong QoS Performance

In order to measure the QoS performance of the Zong, a joint survey was carried out from October 26, 2020, to October 27, 2020, at Warsak & Charsadda Roads, Peshawar. During the survey, it was revealed that 4G/LTE Signal Strength at Charsadda Road and 4G/LTE signal strength as well as call connection time at Warsak Road were observed below the license standards.

Accordingly, the survey results were shared with the licensee vide letter dated October 29, 2020, with the direction to improve the services up to the licensing standards and include the area in the 4G/LTE future rollout plan and the licensee was required to submit compliance report by November 20, 2020. However, in light of the response received from the licensee, an independent survey was carried out by PTA in the said areas whereby it was observed that contrary to the claim of the licensee, some of the QoS KPIs were persistently below the standards as stipulated in the license.

As the QoS results were not within the parameters of the license conditions and QoS Regulations, therefore, a show-cause notice (SCN) under section 23 of the Act on January 17, 2022, was issued wherein the licensee was required to remedy the contravention by bringing and maintaining the required standards of quality of service within fifteen (15) days and also to explain in writing within thirty days of the issuance of SCN.

The Authority under the Act is mandated to regulate the establishment, maintenance, and operation of telecommunication systems and the provision of telecommunication services in Pakistan. In addition, the Authority under section 5(2)(b) of the Act is also empowered to enforce and monitor the licenses. Pursuant to the license granted by the Authority, the licensee is required to meet the requirement of quality of service standards as provided in the license and regulations.

With regard to the licensee’s contention of carrying out a unilateral survey, it is clarified that in the instant matter, a joint survey was carried out and as per the survey report shortfalls were shared with the licensee. The licensee was required to improve the services up to the license standard and include the areas in the 4G /LTE future rollout plan. The licensee replied that it has improved and observing QoS standards as per required KPIs.

In order to verify the claim of the licensee, the Authority carried out an independent survey. As a result of an independent survey report, it has been found that QoS standards were below the required KPIs. As per license condition No. 6.5. l, the licensee is required to meet or exceed the Quality of Service standards described in Appendix-Ill of the license and QoS Regulations at all times.

After providing a fair opportunity for a hearing, the Authority again carried out an independent re-verification QoS at Warsak and Charasadda Roads, Peshawar on April 26, 2022. During the survey, it was observed that voice and data services of the licensee were satisfactory at Warsak Road except for the SMS success rate, whereas, voice and data services were identified as low graded at Charsadda Road.

The Authority concluded that despite extending all possible timeframe to improve QoS of licensed services in accordance with the applicable legal regulatory framework, the KPIs of voice and data services were identified as low graded at Charsadda Road, Peshawar. Therefore, due to non-adhering to the required standards a fine to the tune of Rs. 200,000 was imposed on the licensee with the direction to pay the same within one week from the date of receipt of this order. In case of failure to comply with the above, legal proceedings will be initiated against the licensee as per applicable law.

Source: Pro Pakistan

Keeping in view the plight of the public, Prime Minister Shehbaz Sharif has abolished the One-Time Password (OTP) System used for purchases at utility stores.

Original ID cards will now have to be shown at the counter for purchasing subsidized items at utility stores. The photocopy requirement has also been removed. Now customers will receive a confirmation SMS on their registered mobile number after the purchase from utility stores.

The Utility Stores Corporation (USC) is pursuing a strategy of transparent transfer of federal government subsidies to the real beneficiaries. USC is also increasing the number of PoS counters at every supermarket store and mini-market in Lahore and Islamabad under the direction of the premier.

All zonal managers have been urged to contact all the Deputy Commissioners of Punjab and Islamabad for providing water coolers, tents, chairs, and fans to the customers at the utility stores. Tents and water supply are already in place and orders have been issued to further improve them.

Under the federal government subsidy, sugar is available at utility stores at Rs. 70 per kg, ghee at Rs. 300 per kg and a 10 kg bag of flour at Rs. 400 at all utility stores across the country.

Rice and pulses are also being subsidized. In addition, more than 1,500 standard items are available at a much lower price than the market.

Source: Pro Pakistan

The federal government decided to transfer a Rs. 3.5 billion technical supplementary grant to Sindh to offset losses due to abolition of the octroi and zila tax (OZT)

Sources said that the cabinet has approved a technical supplementary grant (TSG) worth Rs 3.5 billion for Sindh to offset losses due to the abolition of the OZT.

Finance Ministry informed the cabinet that the government of Sindh Is entitled to receive a grant in aid equivalent to 0.66 percent of the provincial share in the divisible pool taxes as compensation for losses on account of the abolition of OZT tax in terms of article 7 of the President’s Order No.6 of 2010 (7th NFC Award).

An allocation of Rs. 19.250 billion was made for the purpose against the actual working of Rs.21.472 billion made based on Federal Board of Revenue (FBR) receipts of Rs 5.829 trillion.

The releases are made based on the actual collection reported by FBR. Due to improved FBR revenue collections, Rs.16.867 billion stands released as of April 18, 2022, out of the total allocation of Rs. 19.250 billion leaving a balance of Rs. 2.383 billion.

The FBR collections during May and June would be much higher than reported previously. As such, the existing balance allocation is not sufficient and an additional allocation of Rs. 3.5 billion is required as per working.

An amount of Rs. 17 billion has been allocated for the ‘Grant for Relief and Rehabilitation of Internally Displaced Persons” under the same demand out of which funds amounting to Rs. 5.1 billion were released during the first quarter of the current financial year, 2021-22.

However, the balance allocation has not been released as the federal government has cumulatively released Rs. 112.463 billion against the total approved package of Rs. 95.51 billion for the Internally Displaced Persons and the balance allocation is available for surrender or utilization for some other purposes if so required.

The allocation of grant-in-aid to Sindh is an expenditure charged upon the federal consolidated fund (FCF) and the allocation is a voted expenditure and under terms of the Public Finance Management Act, 2019, no re-appropriation can be made between funds authorized for expenditure charged upon the FCF and voted expenditure.

The possible solution is to surrender funds from the head and obtain a technical supplementary grant (TSG) where required. The ECC has been requested to approve TSG of Rs.3.5 billion under ID K0955-Grant No.45 (FC24G01) in lieu of surrender from ID 1130570 Grant 45 (FC21G01).

As releases are made based on actual FBR receipts reported by FBR, therefore schedule for the TSG will be issued as per the requirement for which the ECC approval was solicited.

Source: Pro Pakistan