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TAX NEWS APRIL 27, 2016



1.      Provisional figures: over Rs 14 billion Super Tax collected in TY15

April 27, 2016

The Federal Board of Revenue (FBR) has provisionally collected over Rs 14 billion from Super Tax imposed on rich individuals, Association of Persons (AoPs) and companies earning income above Rs 500 million in Tax Year 2015. Sources told Business Recorder here on Tuesday that so far collection of Super Tax has amounted to over Rs 14 billion. The government had imposed Super Tax at the rate of 4 percent of income of banking companies and 3 percent on other categories for rehabilitation of temporarily displaced persons through Finance Act 2015.

Few units challenged the levy in High Court. However, most of the big organisations like multinational companies and banks have already paid the Super Tax. The Board would also recover the levy from other units liable to pay the Super Tax. Through the Finance Act, 2015 a new section 4B was introduced in Income Tax Ordinance according to which Super Tax was imposed for Tax Year 2015 on the income of individuals, association of persons and companies who are earning Rs 500 million or above in Tax Year 2015. For banking companies Super Tax has been imposed irrespective of the quantum of income. Finance Minister Ishaq Dar had said that Super Tax would be extended for another year. Addressing a pre-budget seminar, the Finance Minister said, "Super Tax will continue for another year to eradicate terrorism."

2.      Tax collection banks asked to facilitate special clearing on April 29

April 27, 2016

State Bank of Pakistan (SBP) on Tuesday asked banks to open branches concerned till such time that is necessary to facilitate special clearing for government transactions for facilitation of tax collection on April 29 (Friday). According to SBP circular, in order to facilitate the collection of Government duty / taxes, NIFT will provide special clearing facility on the advice of State Bank of Pakistan on April 29, 2016 (Friday) at 3:00 pm. Banks are, therefore, advised to keep their branches concerned open on April 29, 2016 (Friday) till such time that is necessary to facilitate special clearing for Government transactions.

3.      Customs installs scanner at Torkham

April 27, 2016

Pakistan Customs Tuesday operationalized modern scanner machine at Torkham for scanning the baggage of Afghans crossing Pak-Afghan border for curbing the smuggling of arms, contraband drugs, currencies and goods. Collector Customs Peshawar, Qurban Ali Khan inaugurated the scanning machine installed at Passenger Facilitation Centre at Torkham, Khyber Agency Tuesday.

Speaking on the occasion, the Collector Customs Peshawar, Qurban Ali Khan said installation of scanner machine for checking of travellers is part of efforts of Pakistan government to comply with international obligations of improving border management. Pakistan Customs, he continued, is striving for fully computerisation of its operations and use of modern technology in checking of goods. Presently about 90 percent of trade from Pakistan including import and export has been computerised for which the WeBOC (Web Based Online Customs) has been introduced and installed at all important ports.

Collector Customs also informed the participants of the ceremony that improvement in checking system at Torkham has been taken in the wake of directions of Supreme Court of Pakistan which instructed for installation of modern system for checking of travellers and their luggage. He said that the machine has been installed on the orders of the Supreme Court, which had sent a special commission to inspect arrangements of checking at Torkham border last month. He said thousands of people cross Pak-Afghan border on daily basis and there was quite difficult to check all of them properly.

He expressed the hope that with the support and cooperation of political authorities of Khyber Agency, officials of Khyber Rifles, Frontier Corps and National Logistic Cell (NLC), Pakistan Custom would be able to hold proper checking of all the travellers.

Referring to the concerns of people from across the border, over increased checking and making border passage mandatory through valid travel documents; Qurban Ali said all these measures are taken for improving border management and were not aimed at creating difficulties for travellers. He said scanner machines will help in curbing smuggling of arms, contraband drugs, currencies and trade goods. He said for checking of female travellers, Pakistan Customs has appointed five female searchers who will now properly check women especially those who are wearing full veil.

Speaking on the occasion, Deputy Controller NLC, Faisal Maqsood informed participants that establishment of Passenger Facilitation Centre is party of first phase of border improvement project at Torkham. He said NLC is working on construction of a modern Custom Complex which will have all the facilities including scanning of fully loaded trucks.

Assistant Political Agent Khyber Rahimullah Mehsud said government officials are in touch with concerned authorities in Afghanistan for improvement of border checking at Torkham. He said government is serious in implementation of travel document condition from May 1, 2016 and in this connection no person would be allowed to enter Pakistan without having passport and visa. He also agreed with a questioner that improved checking will result in better security and it was a long standing demand of security forces of improving checking at border posts.






4.      Balochistan govt to introduce tax amnesty in Gwadar

April 27, 2016

The Balochistan government has planned to introduce tax and duty amnesty scheme for national and foreign investors to attract massive investment in port town of Gwadar.

Provincial Minister for Planning and Development, Dr. Hamid Khan Achakzai said this while addressing a press conference along with Additional Chief Secretary (Planning and Development), Nasib Ullah Bazai, here on Tuesday.

He said that work on several uplift projects pertaining China-Pakistan Economic Corridor (CPEC) in Balochistan was underway.

“Work on Zhob-Mughal Kot N-50 and Qila Saifullah Road N-70, Gwadar- Hoshab and Hoshab-Sorab N-85 was under way,” he said, adding that those road projects would be completed before and by 2018, respectively.

He said that work had been started on Rs. 14.06 billion project of East Bay Express from Gwadar to Karachi along coast, adding that Rs. 4.70 billion were allocated inPSDP 2015-16.

He said that a sum of Rs. 0.138 billion were allocated for road projects including Gwadar-Karachi, Gwadar-Basima and Basima- Jacobabad-Khuzdar, adding that 1.01 billion were being released in this regard.

He said the balochistan government had achieved 95 percent target in implementation of 2250 uplift scheme of Provincial public Sector Development Program 2015-16 and 140 development projects of Federal PSDP 2015-16 and said that departmental action would be taken against official if PSDP funs were lapsed.

He said that Rs. 54.5 billion Provincial PSDP 2015-16 had 2250 schemes including 940 ongoing and 1310 new ones. He said that Rs. 19.5 billion were allocated for ongoing schemes and Rs. 31.57 billion for new projects. “About 95 percent funds for ongoing schemes had been released within seven months,” he said, adding that 97 percent PC-1 of new lift schemes had been approved and 95 percent of funds allocated for them have been authorized,’ he said.

He said that departmental action would be taken against official of funds of PSDP were lapsed.

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