Headlines

Pakistan assures IMF to extend annual petroleum levy assortment to Rs920bn

Published

1 week ago

November 21, 2023

In ongoing negotiations with the Worldwide Financial Fund (IMF), Pakistan has pledged to spice up its annual petroleum levy assortment to Rs920 billion for the present fiscal 12 months.

As reported by The Categorical Tribune, the federal government has assured the IMF of accelerating the petroleum levy annual goal from Rs869 billion to Rs920 billion, an extra Rs50 billion, aiming to offset the lack of income from different non-tax sources.

This dedication comes as the federal government faces difficulties in totally recuperating the Gasoline Infrastructure Growth Cess (GIDC) from influential industries.

The federal government at the moment imposes a Rs60 per litre petroleum tax on each petrol and diesel, with the preliminary budgeted assortment goal beneath this head being Rs869 billion. Nevertheless, this goal has now been revised upward to just about Rs920 billion.

Within the first quarter, the federal government already collected Rs222 billion beneath the petroleum levy, marking a considerable 367 % enhance in comparison with the identical interval final 12 months.

Finance Ministry spokesperson Qamar Abbasi clarified that, regardless of the dedication to extend the petroleum levy assortment, there could be no change within the Rs60 per litre levy fee. He defined that petroleum product consumption fell lower than anticipated, ensuing within the annual assortment remaining larger than the budgeted determine of Rs869 billion.

Regardless of surpassing targets, the federal government has chosen to not decrease gasoline costs, which proceed to stay near traditionally excessive ranges amid persistent double-digit inflation.

Whereas committing to extend the petroleum levy assortment, the federal government has concurrently lowered the income assortment goal from the GIDC by Rs10 billion to Rs30 billion. The GIDC, beforehand nullified by the apex courtroom, had firms accumulating Rs416 billion by December 2018, which was not deposited within the nationwide treasury.

It’s notable that in September 2019, former Prime Minister Imran Khan issued a Presidential Ordinance to waive off half of the Rs416 billion. Following media criticism, the PTI authorities withdrew the controversial ordinance and opted to settle the matter of the excellent dues via courtroom proceedings. The Supreme Courtroom annulled the GIDC statute, dismissing the federal authorities’s evaluation petition.

Since 2019, solely Rs80 billion of the Rs416 billion has been recovered, with about Rs337 billion nonetheless pending. The goal for restoration has been additional lowered by Rs10 billion.

Excellent dues in 2019 included Rs138 billion towards fertiliser firms, Rs42.5 billion from the textile sector, Rs91.4 billion from captive energy crops, and Rs80 billion from the CNG sector.

The finance ministry spokesperson attributed the challenges in GIDC arrears assortment to varied courtroom circumstances.

Regardless of a rise within the petroleum levy assortment, the goal for non-tax revenues has been slashed by Rs97 billion. The Federal Board of Income (FBR) maintained an unchanged tax assortment goal of Rs9.415 trillion. Nevertheless, inside this goal, the revenue tax assortment goal was elevated by Rs346 billion to compensate for shortfalls in gross sales tax, customs duties, and federal excise responsibility targets.

The revised revenue tax assortment goal stands at Rs4.23 trillion, representing 45 % of the entire assortment. The gross sales tax annual goal has been lowered by Rs196 billion, customs duties by Rs117 billion, and federal excise responsibility assortment goal by Rs34 billion.

The FBR knowledgeable the IMF that as a result of import compression, its assortment on the import stage would see a dip, compensated by enhanced income assortment on the home stage.

Headlines

FBR freezes PIA’s financial institution accounts over Rs55bn unpaid federal excise responsibility

Published

4 hours ago

November 30, 2023

Pakistaneo.com

The Federal Board of Income (FBR) has taken motion to freeze all financial institution accounts of Pakistan Worldwide Airways (PIA) attributable to non-payment of federal excise responsibility, including to the airline’s ongoing monetary challenges.

FBR officers report that PIA’s excellent liabilities for federal excise responsibility have reached Rs55 billion as much as September 2023. Regardless of repeated notices, the airline has failed to handle these obligations. Moreover, the tax liabilities for October 2023 stay unresolved as tax returns for that month are but to be filed.

The Massive Taxpayers Unit (LTU) in Karachi, a subsidiary of FBR, executed the freezing of PIA’s accounts with the purpose of recovering the excellent tax liabilities. Already, an quantity of Rs1.5 billion has been recovered and deposited into the nationwide treasury. Banks have been instructed to promptly switch any funds obtained in PIA’s accounts to the FBR’s treasury accounts.

Latest reviews point out that PIA has not filed returns since February, and a tribunal’s order requires the airline to promptly pay Rs2.77 billion. The freezing of accounts occurred two days earlier than the top of the month, deviating from the same old follow of such actions happening on the month’s final day.

It’s pertinent to say right here that final month, PIA confronted operational disruptions, together with flight cancellations and delays, attributable to unpaid dues to the state’s oil advertising firm, Pakistan State Oil (PSO). Studies from Bloomberg spotlight that PIA’s liabilities stand at Rs743 billion (roughly $2.5 billion), surpassing its complete property by 5 instances.

PIA sought extra borrowing of over Rs7 billion from banks amid considerations about potential flight operation suspensions amidst a extreme monetary disaster. The airline has approached the Aviation Division for quick loans, together with a government-guaranteed possibility for securing Rs7.5 billion.

Headlines

Pakistan’s cotton exports see a big rise this season, transport 125,000 bales

Published

5 hours ago

November 30, 2023

Pakistaneo.com

Pakistan has efficiently exported a minimal of 125,000 cotton bales, with prospects indicating additional enchancment in export volumes.

Notably, all export offers have been secured by a singular cotton ginner from Sindh, Dr. Jasso Mal, with locations together with China, Vietnam, and Indonesia.

It’s anticipated {that a} comparable amount of cotton bales shall be exported within the remaining length of the season. The present season marks a possible document, contemplating that cotton exports haven’t surpassed six digits since 2017-18 when the determine reached 207,424 bales. In distinction, the nation exported solely 4,900 bales in 2022-23, 16,000 bales in 2021-22, and 70,200 bales in 2020-21.

Ginners attribute this upswing in exports to the superior high quality of lint and favorable worldwide markets, drawing international consumers to Pakistani cotton.

Based on Cotton Ginners Discussion board Chairman Ihsanul Haq, the absence of typical rains in most cotton-growing areas has positively influenced crop high quality. Moreover, a big issue has been the document devaluation of the rupee, making native cotton extra aggressive on the worldwide stage.

Haq acknowledges that the potential document in cotton exports may need been greater if not for a decline in lint yield in Punjab on account of a extreme whitefly assault. Environmental air pollution has additionally negatively impacted the business.

Headlines

Senate committee sad with SBP’s probe into Rs70bn photo voltaic panel rip-off

Published

6 hours ago

November 30, 2023

Pakistaneo.com

The Senate Standing Committee on Finance expressed its dissatisfaction with the State Financial institution of Pakistan (SBP) over its dealing with of the investigation into the trade-based cash laundering of over Rs70 billion by way of the import of photo voltaic panels.

The committee, chaired by Senator Saleem Mandviwalla, met on Wednesday to debate the problem for the third time, however discovered the newest report by the SBP to be insufficient and missing in new data or progress.

The committee members questioned why the SBP was not sharing the total particulars of the case, when the Federal Board of Income (FBR) had already established the proof of cash laundering by way of the duty-free imports of photo voltaic panels.

A consultant of the SBP advised the committee that the banks concerned within the case had been recognized and penalised, however didn’t disclose their names.

The committee members, together with PMLN’s Musadik Malik and Saadia Abbasi and PTI’s Mohsin Aziz, demanded that the SBP present the entire data and the names of the banks to the Senate panel.

Senators additionally identified that the cash laundering was a critical offence, particularly at a time when the nation was going through international change constraints and needed to limit important imports.

Mandviwalla mentioned he had been suggesting that the case ought to be referred to the Federal Investigation Company (FIA) for a radical probe, because the SBP was not giving a transparent image to the committee.

PMLN’s Malik mentioned the FBR and Customs authorities had revealed that 63 importers had laundered cash by way of over-invoicing of photo voltaic panels, however this was primarily based on an audit of solely 200 out of 450 importers. He mentioned the whole sum of money laundering could possibly be as excessive as $2.5 billion if all of the importers had been audited.

Customs officers reiterated their earlier stance that they’d began the investigation in October 2022 and located 63 importers concerned in over-invoicing of photo voltaic panels, which had been imported from China however funds had been routed to the UAE or Singapore. They mentioned the photo voltaic panels weren’t bodily examined by the customs as they had been duty-free objects and solely good declarations (GDs) had been introduced to the customs desks.

The FBR had reported that photo voltaic panels had emerged as a high-risk merchandise for over-invoicing and trade-based cash laundering as a consequence of their duty-free import standing and the absence of gross sales tax on native provide.

They mentioned the photo voltaic panels, which had been imported at Rs72.83 billion, had been bought within the home market at nearly half the value, i.e. Rs45.61 billion.

Customs officers mentioned they’d registered instances in opposition to the most important suspects, together with Rab Nawaz and his spouse of Shiny Star Firm, who had been now on bail. Senator Mohsin Aziz mentioned the Shiny Star had laundered round Rs40 billion by way of two banks.