FTO Directs FBR to Issue Clear Instructions on POS

While disposing of a complaint, the Tax Ombudsman has directed FBR to issue instructions to field formations regarding Point Of Sale (POS) highlighting prerequisite conditions/qualifications for a retail outlet to integrate with FBR’s POS system laid down in section 2(43A) of the Sales Tax Act, 1990.

Briefly, the complainant, an individual deriving income from a sweets & bakery shop received notice from FBR whereby, he was required to integrate with POS as provided u/s 3(9A) read with 2(43A) of the Sales Tax Act, 1990.

Against notice, Complainant submitted a reply wherein he informed that his shop area is less than 1000sqft and annual electricity bill is less than Rs. 1.2 million, etc. but to no avail.

The complaint was later sent to the Secretary, of Revenue Division in terms of Section 10(4) of the FTO Ordinance read with Section 9(1) of the Federal Ombudsmen Institutional Reforms Act 2013. In response thereto, the Chief Commissioner IR, RTO, Sargodha submitted comments of the Commissioner-IR, Zone-I, RTO, Faisalabad.

On merits, it was contended that Complainant’s reply was received on 20.20.2023 which was under consideration. Further, the verification of the business premises is also under process.

As per Chapter XIV-A of the Sales Tax Rules 2006, Bakers & Sweets are under obligation to integrate their business with FBR’S POS system Rule 150ZB of the Sales Tax Rules 2006. Hence, no element of maladministration was involved in the case. Both parties were heard and the record was perused.

Examination of records and documents submitted by both sides transpired that there was no evidence that the sector ‘sweets and bakers’ must be integrated with FBR’s POS system. Further, this forum demanded the list of ‘Sweets & Bakers’ integrated with FBR’s POS system, and as per the list provided by the Deptt, out of 32 shops 9 shops were integrated with POS.

Deptt insisted that bakeries and sweets shops were obliged to register themselves under Sales Tax Act, 1990, and install the POS system according to Rule 150ZA and Rule 150ZB contained in Chapter XIV of Sales Tax Rules, 2006.

Conditions laid in Section 2(43A) did not apply and bakeries as a business sector were supposed to install POS. However, no express specific order from FBR could be produced from both sides. On the other hand, the AR of the Complainant insisted that for installation of POS system conditions/categories enumerated in Section 2(43A) was a pre-requisite and mandatory.

AR submitted copious references to case law establishing that principal law/statute prevails where there is a difference/inconsistency between the main statute and subordinate legislation i.e rules, the case law cited as 2001 PTD 2383 = 84 Tax 248 Supreme Court of Pakistan, 2011 PTD 543 Inland Revenue Appellate Tribunal of Pakistan. The relevant portion is reproduced;

‘‘It is now a well-established principle of interpretation of statutes that Rules which are merely subordinate legislation, cannot override prevail upon the provisions of the parent statute, and whenever there is an inconsistency between a Rule and the statute, the latter must prevail. This, however, envisages that all efforts to reconcile the inconsistency must first be made and the provisions of the parent statute prevail only if the conflict is incapable of being resolved’’.

The matter was also discussed with other field formations of FBR and none reported any such exercise whereby bakeries, catteries, or coffee shops were being registered for POS on a sectoral basis without pre-qualification of Tier-I retailers as detailed in Section 2(43A) of the Sales Tax Act, 1990.

Accordingly, FTO has directed FBR to withdraw the show cause notice dated 07.02.2023. Furthermore, FBR is to issue clear instructions to field formation to follow pre-qualifying criteria regarding POS integration provided in section 2943A) of the Sales Tax Act, 1990.

Source: Pro Pakistani

SUVs Sold More Than Smaller Cars Despite Inflation: Economic Survey

Rampant inflation and relentless economic instability have ravaged the car industry. However, despite these issues, the SUV and pickup truck (double cabin) segments fared better than expected compared to the car segment.

According to the Pakistan Economic Survey 2022-23 report, the car segment saw a 47.3% Year Over Year (YOY) decline in production in the FY 2022-23.

The SUV segment, on the other hand, saw a decline of only 25% YOY in production, despite the exorbitant price tags. The two and three-wheeler industry also saw a decline of 33.3% in production.

In the context of SUVs, an argument can be made that their production and sales volume is considerably less than cars, even in normal circumstances. Even if both declines are compared to change, car sales, and production fared much worse than SUV sales and production.

The ongoing economic instability has been devastating for Pakistan’s auto industry. However, with the new budget around the corner, the atmosphere is filled with anticipation as to where the car industry of Pakistan will go from here.

Source: Pro Pakistani

Pakistan Post issues commemorative stamp in connection with 7th Population, Housing Census

Pakistan Post has issued a commemorative stamp in connection with the 7th Population and Housing Census.

The stamp was unveiled at a ceremony held at Pakistan Bureau of Statistics in Islamabad on Thursday.

It symbolizes the recognition for the remarkable achievement of country’s first ever digital census.

The postage stamp of Rs.50 denomination can be purchased from all main post offices across the country.

Speaking on the occasion, Chief Statistician Dr. Naeem-uz-Zafar expressed gratitude to all departments for their collaboration in census process.

Source: Radio Pakistan

Meezan Announces Installment Plan for Electric Bikes

The crippling fuel price inflation in the past year has prompted motorists to consider electric bikes as a possible alternative.

Realizing the opportunity, Meezan Bank has launched an installment plan for electric bikes (e-Bikes). The offer seeks to compete with those of other bike makers and is available on all bikes, both petrol-powered and electric.

The service entails the following benefits and conditions:

Only available to Meezan Bank debit and credit card holders.

Financing period of up to two years.

Downpayment: Minimum 15% of the cost of the vehicle and a maximum of 50% of the bike’s price.

Monthly installments as low as Rs. 7,461.

Rs. 1,800 non-refundable processing fee.

Immediate ownership transfer.

Other bike makers such as Atlas Honda, Yamaha, and Suzuki have also launched installment plans exclusive to their bikes. Although, the inflated fuel and bike prices have taken a toll on their sales in the last few months.

E-bikes are starting to gradually catch on among Pakistanis, albeit with the realization that petrol-powered bikes are still better when it comes to longer journeys.

Source: Pro Pakistani

Inspiring Story of Pakistan Women’s Cricketer Maham Manzoor

In the world of cricket, stories of determination often inspire fans and players alike. Maham Manzoor, a talented left-arm orthodox spinner hailing from Hyderabad Region, is an example of such resilience. Despite facing financial hardships, Maham’s solid dedication to her skill has led her to represent her region and dream of representing her country on the international stage.

Maham’s journey in cricket began when she first represented Hyderabad Region at the U19 level during the 2013-14 season. The left-arm spinner quickly caught the attention of selectors with her natural talent and ability to spin the ball. Despite facing numerous financial challenges, she continued to train and compete, determined to make her mark in this sport.

In 2014, Maham made her debut in List-A cricket, featuring in the Mohtarma Fatima Jinnah Women Cricket Championship Seniors. This opportunity allowed her to showcase her skills against seasoned players and gain valuable experience. Although her team’s performance may not have been the most successful, Maham’s individual contributions stood out, underlining her potential as a rising star.

Maham in conversation with PCB Digital talked about her journey to date. She said, “I started playing on the streets, my family was very supportive from the beginning, they motivated and encouraged me to take this game.

On how she came into this game, Maham said, “I was in school when I saw on the television screen that the women’s team was playing a cricket match and then I came to know that there exists a women’s cricket team.”

On who inspired her to take this game as a professional sport, Maham said, “Javeria Khan inspired me, when I saw her on the ground for the first time, it came to my knowledge that she is a senior player, and watching her I got the feeling that I should play.”

Maham’s journey has been far from easy. She had to travel from Hyderabad to Karachi to pursue her dream as there were fewer facilities in the Hyderabad region. She said, “I had an issue of residency in Karachi, so I used to travel to Karachi in the morning and after playing the match, travel back the same night to my home on public transport.”

Coming from a financially constrained background, she bears the responsibility of supporting her family while pursuing her cricketing aspirations. Despite these challenges, Maham has never lost hope of representing her country in the near future.

Maham’s father, who passed away in 2018, dreamt of seeing her daughter representing Pakistan women’s cricket team. Maham said, “My father always pushed me to play this game, he encouraged me that a good time will come, just have faith and wanted to see me in Pakistan colors once.”

Recently, Maham had the opportunity to represent Dynamites in the Pakistan Cup Women’s Cricket Tournament. In the T20 phase of the tournament, Maham performed exceptionally, ending up in the fourth spot among the bowlers with five wickets from two matches.

In the subsequent one-day phase, Maham claimed four wickets from four matches and helped her side clinch the one-day phase of the tournament, further solidifying her reputation as an exciting prospect in Pakistan women’s cricket.

Maham is not losing hope of representing Pakistan women’s team in the future. She said, “I have made a great struggle to reach this stage. I am grateful for whatever I am today and will not lose hope and continue to avail chances. I will also urge other girls to take this sport, and would request their parents to support them.”

Source: Pro Pakistani