Day: November 12, 2021

The sugar mills cannot remove their stocks from factories from November 11, 2021, unless each and every sugar bag is affixed with the tax stamp, a unique identification marking (UIM), specified by the Federal Board of Revenue (FBR).

FBR issued an order on Thursday to ensure implementation of the Track and Trace System under SRO 250/2019. Following the order, no sugar bag without a tax stamp/UIM affixed to it can be removed from the premises of sugar mills.

The provisions of Section 40C(2) of the Sales Tax Act, 1990 read with Rule 150ZF of the Sales Tax Rules, 2006 mandate the FBR to notify the date for implementation of electronic monitoring of production and sales of goods in the manner prescribed in the law on all manufacturing sites of notified sectors.

The FBR order reads: “In exercise of the powers conferred under Section 40C(2) of the Sales tax Act, 1990 and Rule 150ZF of the Sales Tax Rules, 2006, it is hereby notified that no sugar bags shall be allowed to be removed from a production site, factory premises or manufacturing plant without affixation of tax stamps/UIMs with effect from November 11, 2021, which are to be obtained/procured from the FBR’s Licensee M/s AJCL/MITAS/Authentix Consortium.”

“This issues with the approval of the competent authority, member Inland Revenue Operations, FBR, Islamabad,” it concludes.

Source: Pro Pakistani

The total liquid foreign exchange reserves were recorded at $24.03 billion as of November 5, 2021, tweeted the State Bank of Pakistan (SBP) on Thursday.

The total liquid foreign reserves have seen a jump after a decline for consecutive five weeks. At the start of October, the reserves stood at $25.99 billion, however, the reserves fell to $23.92 billion by the end of the month.

Furthermore, the net reserves with SBP also increased as they increased from $17.19 billion on October 29 to $17.32 billion on November 5.

The SBP net reserves have shown a jump for the second consecutive week after a fall from $19.16 billion at the start of October to 17.14 billion in the third week of the month.

During this time period, no significant change has been observed in the net reserves with banks. On November 5, the reserves stood at $6.69 billion compared to $6.72 billion in the previous week.

During the first quarter of the current fiscal year, the total liquid foreign reserves have experienced a sharp increase followed by a decline. In July 2021, the total liquid foreign reserves stood at $24.77 billion. In August 2021, the reserves experienced a sharp increase and stood at $27.06 billion.

Source: Pro Pakistani

The board of Samin Textile Limited has planned to enter into the retail business of home appliances through acquisition or joint-venture with a leading market player.

In this regard, the management of the company has expressed its interest in Waves Singer Pakistan Limited for purchasing its business or partnership in the business.

During the financial year 2020-21, the operation of the company remained suspended. However, the new business revival plan of trading of home appliances was also formulated and intimated to all stakeholders, implementation of which is started in Aug 2021 and the company has achieved a turnover of Rs. 11 million.

The management of the company is in the process of hiring dedicated manpower having retail business expertise. Simultaneously, senior management has drafted strategic and operations business projections keeping in view the recent market dynamics especially the impact of COVID-19 on retail businesses.

The company has made arrangements with the lenders for working capital requirements.

The management team is holistically working towards the implementation of the revival plan and is dedicatedly working towards developing an infrastructure to support the network of retail outlets and the sale of home appliances.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) has reduced the sales tax rate on petrol from 6.84 percent to 1.43 percent with effect from November 11, 2021.

According to SRO.1450(I)/2021 issued on Thursday to amend the SRO.57(I)2016, the sales tax rate on high-speed diesel oil (HSD) has been reduced from 10.32 percent to 6.75 percent. However, the sales tax on Kerosene and light diesel oil remains unchanged at 6.70 percent and 0.20 percent, respectively.

In its biannual review released earlier, the FBR revealed that petroleum products made up the major chunk of the collection of domestic tax. The FBR’s data revealed that petroleum products, the top revenue-generating source with a 34.9 percent share, recorded 30.1 percent growth during 2020-21.

Like in the domestic sales tax, petroleum is the leading source of sales tax collection at the import stage. Its share in total sales tax imports is around 23 percent. During FY 2020-21, collection from POL products was Rs. 255.7 billion against Rs. 231.3 billion in FY 2019-20, reflecting a growth of 10.6 percent, according to FBR.

Source: Pro Pakistani