Day: January 5, 2022

With an objective to improve the timely inflow of foreign exchange from export proceeds in the market, the State Bank of Pakistan (SBP) has amended the foreign exchange regulations and directed the exporters to bring export proceeds within a maximum period of 120 days from the date of shipment.

Earlier, the exporters were required to bring their export proceeds within a maximum period of 180 days. This move also brings Pakistan’s regulations closer to international best practices.

The full export value of goods exported from Pakistan and declared to the Customs authorities should be received on the due date for payment or within 120 days from the date of shipment, whichever is earlier, through an Authorized Dealer either in convertible foreign currency, in which the Authorized Dealer maintains accounts, or in Pakistan rupee from a repatriable rupee account of a nonresident, the circular issued by SBP stated.

Where the terms of sale provide for payment earlier than 120 days, including DP/CAD/sight bills, Authorized Dealers may allow extension in the realization period if they are satisfied with the written explanation given for the delay in the realization by the exporter.

Such explanation must be supported by documents/communication from the foreign buyer and the extension must not exceed the period beyond 120 days from the date of shipment. Authorized Dealers will not allow extension in the realization period, once they have reported the case as overdue to FEOD, SBP-BSC, it further added.

The above changes will be applicable on all transactions authorized by the Authorized Dealer, including approval of electronic/manual Form-E or issuance of financial instrument in Pakistan Single Window with effect from January 6, 2022. Realization of export proceeds for earlier transactions may be undertaken as per the instructions applicable at the time of execution of such transactions.

It is pertinent to mention here that in the recent past, SBP has introduced a number of policy measures in its foreign exchange regulations to facilitate exporters. These include

i. Allowing up to 10 percent of exporters’ annual exports for equity investment abroad to establish overseas subsidiary/branch office

ii. Allowing exporters who are eligible to retain part of their export proceeds to make payments abroad from their export retention account for a number of additional purposes including marketing & promotions, purchase of design/ patterns, warehousing, consultancy service, etc.

iii. Facilitating e-Commerce by allowing exporters to sell their products directly through their own websites as well as through international digital marketplaces including Amazon, e-Bay, Ali Baba, and

iv. Allowing exports by way of dispatch of shipping documents directly to the foreign buyer, to make exporters competitive in the international market.

v. The new measure is expected to positively impact foreign exchange inflows in the market. SBP is of the view that flexible exchange rate has appropriately played its role as a shock-absorber and it is important that its role be complemented by strong exports proceed realization.

vi. The new measure is expected to positively impact foreign exchange inflows in the market. SBP is of the view that flexible exchange rate has appropriately played its role as a shock-absorber and it is important that its role be complemented by strong exports proceed realization.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) has assigned jurisdiction to the officials of Designated Non-Financial Businesses and Professions (DNFBP) to comply with the Financial Action Task Force (FATF) requirements.

DNFBP is a classification used by FATF denoting non-financial sector business that poses a money-laundering and terrorism financing threat. FATF recommended that DNFBPs be subject to the same risk-based AML/CFT compliance regulations as banks and other financial institutions, including transaction monitoring, reporting, and record-keeping obligations.

The real estate developers and agents, dealers in precious metals and precious stones, law firms, notary firms and other independent legal businesses, accounting firms, audit firms or insolvency firms, and also company service providers fall under the jurisdiction of DNFBP. Normally, the above-mentioned sectors carry out transactions with a customer of billions of rupees without maintaining the record there, for they are considered as a thread of money-laundering and terrorism financing.

According to the FBR notification, the Director General of Directorate General DNFBPs is responsible for the area within the territorial jurisdiction of Pakistan. Director DNFBPs Headquarters (HQ), Islamabad, Additional Director DNFBPs HQ, Islamabad, Deputy Assistant Director DNFBPs HQ, Islamabad and Inspector(s) DNFBPs HQ, DNFBPs Islamabad, will work on assignment by the Director General.

Five Directors have been assigned in four provinces and the federal capital, Islamabad.

The Director (DNFBPs), Islamabad will be responsible for all cases of DNFBPs assigned to Corporate Regional Tax Office Islamabad and Large Taxpayers’ Office Islamabad and all DNFBPs carrying on business, falling within the territorial jurisdiction of the Regional Tax Offices Rawalpindi, Islamabad, and territorial jurisdiction of Gilgit Baltistan. Under the Director Islamabad, there will be two Additional Directors who will also perform their duties.

Additional Director-I (DNFBPs), Islamabad will look into the cases of DNFBPs assigned to Corporate Regional Tax Office Islamabad and Large Taxpayers’ Office Islamabad and all DNFBPs carrying on business, falling within the territorial jurisdiction of Islamabad.

Additional Director-II (DNFBPs), Islamabad will look into all DNFBPs carrying on business, falling within the territorial jurisdiction of the Regional Tax Office, Rawalpindi and territorial jurisdiction of Gilgit Baltistan. Deputy/Assistant Directors-I, II, III, IV, V were also assigned their jurisdiction in Islamabad.

Director (DNFBPs), Karachi has been assigned the area falling under the Corporate Tax Office Karachi, Large Taxpayers’ Office, Karachi, Medium Taxpayers’ Office, Karachi and all DNFBPs carrying on business, falling within the territorial jurisdiction of the Regional Tax Offices, I & II Karachi and Regional Tax Offices Hyderabad and Sukkar. Additional Director-I (DNFBPs), Karachi will look all cases of DNFBPs assigned to Corporate Tax Office Karachi, Large Taxpayers’ Office, Karachi and Medium Taxpayers’ Office, Karachi and all DNFBPs carrying on business, falling within the territorial jurisdiction of the Regional Tax Offices, I II Karachi.

Additional Director-Il (DNFBPs), Karachi will look into all the DNFBPs carrying on business, falling within the territorial jurisdiction of the Regional Tax Offices Hyderabad and Sukkar.

Director, (DNFBPs), Lahore will look into all cases of DNFBPs assigned to Corporate Tax Office Lahore, Large Taxpayers’ Office, Lahore and Large Taxpayers’ Office, Multan and all DNFBPs carrying on business, falling within the territorial jurisdiction of Regional Tax Offices Lahore, Sialkot, Gujranwala, Faisalabad, Sargodha, Multan, Sahiwal and Bahawalpur.

Additional Director-I (DNFBPs), Lahore will look into the cases of DNFBPs assigned to Corporate Tax Office Lahore and Large Taxpayers’ Office Lahore, and all DNFBPs carrying on business, falling within the territorial jurisdiction of Regional Tax Office Lahore.

Additional Director-II (DNFBPs), Lahore will look into DNFBPs carrying on business, falling within the territorial jurisdiction of Regional Tax Offices Sialkot, Gujranwala, Faisalabad and Sargodha. Additional DirectorIII (DNFBPs), Lahore will look into the cases of DNFBPs assigned to Large Taxpayers’ Office, Multan and all DNFBPs. Carrying on business, falling within the territorial jurisdiction of Regional Tax Offices Multan, Sahiwal and Bahawalpur.

The Director (DNFBPs) I will look into the cases of DNFBPs Quetta carrying on business, falling within the territorial jurisdiction of Regional Tax Office Quetta.

Additional Director will look into the cases in all DNFBPs carrying on business, falling within the territorial jurisdiction of Regional Tax Office Quetta.

Director (DNFBPs) KP will responsible for all the cases falling within the jurisdiction of falling within the territorial limits of Regional Tax Offices, Peshawar and Abbottabad.

Source: Pro Pakistani

Pakistan-China Institute (PCI) and All-Pakistan Chinese Enterprises Association (APCEA) launched the ‘APCEA Sustainable Development Report 2021’ during an event organized at the Chinese Embassy.

The event was attended by over 100 participants and featured five speeches, including the Chief Guest, Chairman Senate of Pakistan, Sadiq Sanjrani, Chairman APCEA, Yang Jiandou, Chairman Senate Defence Committee & Pakistan-China Institute, Senator Mushahid Hussain Sayed, Special Assistant to PM on CPEC, Khalid Mansoor, Minister Counsellor for Economic and Commercial Affairs, Xie Guoxiang, and Ambassador of China to Pakistan, Nong Rong.

APCEA represents 200 Chinese Companies working in Pakistan. Speakers also welcomed the upcoming visit of Prime Minister Imran Khan to China in early February, as it would strengthen the bilateral bond.

Hailing the launch of the report as a promising step towards enhancing the understanding of the work being done by Chinese enterprises in Pakistan, the speakers appreciated the role of APCEA and PCI in creating the report, which will serve to promote facts and information regarding the role of Chinese enterprises in Pakistan.

In his keynote speech, Chairman Senate of Pakistan, Sadiq Sanjrani, said that through this report, the people will learn more about CPEC and the opportunities being created by Chinese enterprises in Pakistan. Terming CPEC as a game-changer, he said the project will create trade linkages and economic opportunities in the whole region.

Moreover, he remarked that after overhauling the infrastructure and alleviating the energy crisis in the first phase, CPEC phase-II will initiate an era of industrialization in the country. To harness the opportunities brought by the second phase, he advocated for enhancing communication with Chinese enterprises. He urged APCEA to closely coordinate with the Chambers of Commerce and Industry in Pakistan.

Chairman Senate Defence Committee & Pakistan-China Institute, Senator Mushahid Hussain Sayed, said that the APCEA report will serve the purpose of presenting facts and nullifying the fiction being propagated by the adversaries of China about CPEC. He pointed towards the recently passed “Strategic Competition Act” by the US Senate, through which the US has allocated $300 million for a “Countering China Influence Fund.” Against this backdrop, he advised the companies to brace themselves against any disinformation campaigns.

He also lauded the upcoming development related to slashing the long bureaucratic red tape of 37 rules and regulations and said that it would facilitate the Chinese enterprises. Senator Mushahid Hussain Sayed criticized the boycott of the Beijing Olympics by certain Western Countries as biased and based on double standards. He said 2022 is the year of Pakistan’s Platinum Jubilee, in which Pakistan-China ties have always been center-stage.

Speaking at the occasion, Ambassador Nong Rong said that last year, China and Pakistan held a series of celebrations to reinvigorate their time-tested friendship as it marked the 70th anniversary of diplomatic relations. Both sides have supported each other in their fight against the global pandemic and pushed forward high-quality development of CPEC. He said China had invested over $25 billion in Pakistan through CPEC projects, generating 75,000 jobs, producing 5500 kW of electricity, and building over 500 kilometers of roads and highways.

Special Assistant to PM on CPEC, Khalid Mansoor, said that he has first-hand witnessed the difference created by the work of Chinese enterprises in Pakistan. Through CPEC, the dream of Thar Coal energy became a reality. CPEC Authority, he said, is working tirelessly to remove any bottlenecks, which may emerge during the execution of CPEC projects. He said the Prime Minister had ordered the removal of 37 regulations for a one-window operation for foreign investors, and the Prime Minister would be taking briefings on CPEC projects progress every 15 days.

Minister Counselor of Economic Affairs, Xie Guoxiang, said that the trade and economic cooperation between the two countries had been further cemented since the start of CPEC. Chinese enterprises, he maintained, have done marvelous work, which can be seen in the report being launched today.

Chairman APCEA, Yang Jiandou, said that Chinese enterprises have pursued sustainable development strategies in Pakistan, and their role is not limited to building motorways and constructing power projects. The Chinese enterprises have improved people’s livelihood, implemented eco-friendly development, joined hands with Pakistani counterparts to fight the pandemic, and helped in developing local education. Moreover, he said that the leadership of APCEA has been committed to enhancing the connectivity between Chinese enterprises and the local business bodies.

The report launching was attended by several officials, including the CEOs of Chinese enterprises, and Senator Kauda Baber from Balochistan.

Source: Pro Pakistani

Chairman Federal Board of Revenue (FBR), Dr. Ashfaq Ahmed, on Tuesday, said that the release of the Tax Directory of the Parliamentarians was meant only to ensure transparency.

Responding to a question raised by Senator Farooq H. Naek during a meeting of the Senate Standing Committee on Finance, Revenue and Economic Affairs, Dr. Ashfaq said FBR had released the Tax Directory of the fiscal year 2019 this year, while it would also release the Tax Directory of FY21 in the coming days. He said FBR had released the Tax Directory after the approval of the federal cabinet.

Criticizing the release of the Directory by FBR, Senator Farooq Naek said that the reputation of many respected parliamentarians had been damaged due to the Directory. He said incumbent Finance Minister, Shaukat Tarin, Yousaf Raza Gillani (Opposition Leader in Senate), Senator Taj Haider, and Palwasha Khan were not Senators in 2019, but their names had also been included in the Tax Directory. “How did FBR include their names?”, asked Farooq Naek while addressing Chairman FBR.

The Chairman FBR said that there might be errors from a single person, but the motive of releasing the Tax Directory was only to bring transparency. “We sent SMS to all parliamentarians before releasing the Directory. Many of them responded and made corrections to the tax records,” he explained and added that FBR considered the available record as correct of those who did not respond.

Senator Naek asked if the transparency was only for the parliamentarian. He asked, “What about the NAB and others?”

Dr. Ahmed said these were the fragmented taxes, adding, “Some taxes are collected by the provinces. Some provinces don’t share data with us.”

Senator Musaddiq Malik of Pakistan Muslim League-N said that FBR should have used a prudent way to confirm the tax records. “They may have sent a letter to us rather [than] sending an SMS.”

Senator Mohsin Aziz of the ruling Pakistan Tehrik-e-Insaf supported the Chairman FBR, saying that FBR had given the names of Senators in the Tax Directory who were not Senators in 2019. The release of Tax Directory is not to malign anyone, he emphasized.

The Chair Senator Talha Mahmood said that corporate and other taxes were not shown in the Directory and only individual taxes were included, so FBR should clear the ambiguity.

The meeting was also attended by Senators Sherry Rehman, Saleem Mandviwale, Saadia Abbasi, Zeeshan Khanzada, Faisal Saleem Rehman, and Dilawar Khan.

Source: Pro Pakistani

In a bid to collect maximum taxes from big retailers, the Federal Board of Revenue (FBR) has made public the list of 1,284 business tycoons who did not integrate their businesses with its Point Of Sale (POS) system, warning them that they will not be eligible to claim the input adjustment tax of December 2021 if they do not comply by 10 January 2022.

The tax collection authority has published the names of business centers, falling in Tier-l Retailers of FBR, who did not integrate their businesses with the POS system. It has also mentioned the jurisdictions, STRN and NTN along with the names of business owners.

The Islamabad Serena Hotel is also among the non-compliant businesses as it did not integrate with the POS system. Surprisingly, the list shows that about 1,000 non-compliant businesses belong to Islamabad and Rawalpindi. Out of the total business tycoons, 720 business centers belong to the jurisdiction of RTO Rawalpindi who did not compliant.

As many as 369 big retailers, who have not integrated their businesses with the POS system, belong to RTO Islamabad, in addition to 33 retailers from RTO-I Karachi, 21 from LTU Islamabad, 20 from RTO Sialkot, and 13 from RTO Quetta.

Out of total identified retailers, 11 are from CTO Karachi, 10 from CTO Lahore, nine from RTO Faisalabad, eight from RTO Peshawar, seven belong to RTO Karachi-II, five from RTO Multan, four from Karachi, four from RTO Sargodha, two from Abbottabad, one from Sukkur, six each from TRO Bahawalpur and RTO Sahiwal.

FBR said that the above-mentioned tycoons must integrate with FBR’s system by the 10th of January 2022, otherwise, upon filing their Sales Tax Return for December 2021, their input tax claim would be disallowed without any further notice or proceedings, creating tax demand by the same amount.

Source: Pro Pakistani