1. Excise department asks Uber, Careem to share vehicle data
Feb 2nd, 2017
As news circulated on Tuesday
of a move by the Punjab government to ban ride-hailing services Careem and
Uber, the Directorate of Excise, Taxation and Narcotics Control issued a
notification requesting both organisations to share data on vehicles using
their company's platforms.
A notification sent to both companies observed that a
number of private vehicles registered with the Motor Registering Authority were
rendering services on a commercial basis under Careem and Uber.
It went on to request both companies to share data of
vehicles that operate under their banner.
Yesterday, hours after an internal memo termed the
operations of Uber and Careem "illegal", Chairman of the Punjab IT
board Umar Saif said the approach is being "reviewed".
"This is being reviewed within the government,"
Saif told in a telephone interview, when asked if the companies will be
"banned" in Punjab. "We are coming up with a formal policy. This
letter was an internal memo and has prematurely been made public."
Although he said both Uber and Careem currently do not
pay tax in Pakistan, Saif said the Punjab government is tackling the issue with
an "innovative business model".
"There are two ways that a government can approach
such companies when they launch: 1) treat them as a taxi service or 2) treat
them as a service that governments can regulate."
"We don’t want to treat them as a taxi
service," Saif added. "But they need to be regulated and taxed. They
must register as a formal business under a new taxation regime."
When asked to share details on the new plan, Saif said it
will be modelled around taxation regimes for such companies in Malaysia, Egypt
and Indonesia where they are treated as "network service providers".
2. Property deals: top FBR officials irked by low collection
Feb 2nd, 2017
ISLAMABAD: The Federal Board of Revenue (FBR) has
expressed serious concern over exceptionally low collection of withholding tax
from immovable property transactions where 3 percent of the differential amount
between the FBRs prescribed value and the value recorded by the registering
authority is required to be collected by registering/attesting authorities.
According to the FBRs instructions issued to the Chief
Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs)
here on Wednesday, it has been observed with grave concern that collection
reported under section 236W of the Income Tax Ordinance 2001 in the month of
December, 2016 is pathetically low. The proper implementation of this section
can only be ensured by conducting in depth audit of the registering authorities
falling in respective jurisdiction of LTUs/RTOs.
The FBR said that in respect of withholding tax regime
FBR is having huge reliance on the said referred three sections pertaining to
real estate business. Collection figures up to the month of December, 2016
reveals that these sections are not manifesting the required growth. The
increased rates of filer and non-filer and introduction of fair market value
while calculating both these taxes has tremendously increased the scope of
collection from these sections. The other important point is that the
responsibility of the advance tax collection in these three sections lays with
one withholding agent, ie, Registering/Transferring Authorities. However, it
has been observed that despite these changes these sections (236K & 236C)
are not recording the required growth. In order to fetch the required growth
you are requested to conduct an in depth analysis in respect of these sections
and send a report to this effect on the laid down format.
The FBR said that in respect of section 236W a detailed
Circular No.18 of 2016 dated 07-12-2016 has been issued wherein the same
withholding agents shall deduct/collect at the time of registration or
attestation or transfer of immoveable property from the purchasers or
transferee advance tax 3% of the differential amount between the FBRs
prescribed value and value recorded by the registering authority. The formula
for the calculation of this differential amount has been clearly explained with
examples in the Circular No. 18 of 2016. However, it has been observed with
grave concern that collection reported u/s 236W in the month of December, 2016
is pathetically low. The proper implementation of this section can only be
ensured by conducting in depth audit of the registering authorities falling in
respective jurisdiction of LTUs/RTOs.
Chief Commissioners of LTUs/RTOs are therefore requested
to send a withholding agent wise report in respect of these three sections
(236C,236K and 236W). The results provided will be tabulated and shall be
presented to Finance Minister in the next meeting of Member (IR-Operations).
Chief Commissioners of LTUs/RTOs are requested to observe the deadline so that
the data can be tabulated well before in time, the FBR added.
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