Date for retailers to integrate their Point of Sale (POS) has been extended up to August 31, 2020, by the Federal Board of Revenue Pakistan.

Previously, the deadline to integrate the POS for Tier-1 retailers was June 30, 2020.

As per the sayings of the FBR, only those retailers can integrate their POS by August 31 who submit their intention to RTOs/LTUs by August 20, 2020.

According to the sources, FBR has taken this decision due to lockdown in the many parts of the country in order to prevent the spread of coronavirus the business activities had become standstill.

Big outlets and shopping plazas are being observed with closure during the lockdown and many of those big retailers would not able to make compliance with the regulations.

The deadline was expired on December 15, 2019, which was given by the FBR to tier-1 retailers to integrate their POSs with the FBR online system. However, the date was extended in order to give the opportunity to big retailers to make compliance.

It is the requirement for all the Tier-1 retailers to integrate all their POSs with the computerized system of the FBR.

Tier-1 retailer is defined in section 2(43A) of the Sales Tax Act, 1990, to be a person who falls in any of the following categories:

1. a retailer operating in an air-conditioned shopping mall, plaza or center, excluding kiosks;
2. A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on a wholesale basis to the retailers as well as on a retail basis to the general body of the consumers;
3. A retailer, whose shop measures one thousand square feet in area or more;
4. a retailer operating as a unit of a national or international chain of stores;
5. A retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees twelve hundred thousand.

04 July 2020

Securities and Exchange Commission of Pakistan via S.R.O. 345 (I)/2020, issued the following draft amendments in sub-rule 2 of Rule 4 of the Credit and Suretyship (Conduct of Business) Rules, 2018:

• For the figure ‘80’, the figure ‘10’ shall be substituted;  

And;

• The words "less reinsurance in respect of a particular guarantee/bond" shall be omitted.

Source:

https://www.secp.gov.pk/document/sro-345-i-2020- draft-amendments-to-credit-and-suretyship-conductof-business-rules 2018/

03 July 2020

An amount of Rs.45 billion has been granted by the Federal Board of Revenue Pakistan as the cost of customs duty exemption and concession of customs duty on imports under free and preferential trade agreements.

According to official data of exemption and concessions against imports under Free trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) during fiscal year 2019/2020 was Rs45.02 billion.

The breakup of concessions and exemptions is as follows:

• An exemption has been provided of Rs.1.6 billion worth imports from SAARC countries under the SAFTA Agreement on the basis of SRO 12749i)/2006.
• An exemption has been provided of Rs.26.85 billion on imports from China under Pak-China FTA on the basis of Table-I of SRO 659(I)/2007.
• An exemption has been provided of Rs.6.911 billion under Table-II of SRO 659(I)/2007  on import from China under Pak-China FTA.
• A general exemption has been provided of Rs.2.52 billion under SRO 1261(I)/2007 Table-I on import from Malaysia under PTA.
• A general exemption of Rs.922 million has been granted under SRO 1261 (I) / 2007 Table-II on import from Malaysia under PTA.
• A general exemption has been provided of Rs.3.64 billion under SRO 741(I)/2013 on import from Indonesia under Pak-Indonesia PTA.
• A general exemption of Rs.1.77 billion has been granted under SRO 280(I)/2014 on imports from Sri Lanka under Pak-Sri Lanka FTA.

02 July 2020

With the start of the next financial year on 1^st July 2020, the Federal Board of Revenue Pakistan has started the preparation for the achievement of revenue collection target for the Fiscal year 2020-2021.

For the aforesaid fiscal year, FBR has massively increased the additional customs duty up to 7 percent with an effect from 1^st July 2020.

For the purpose of levying additional customs duty at different rates of two percent, four percent, and seven percent, FBR has issued an SRO 572(I)/2020 on Tuesday.

The FBR provisionally collected Rs3.957 trillion for fiscal year 2019/2020. As per budget documents, the FBR has been assigned to collect Rs4,963 billion during the fiscal year 2020/2021, which is around 25 percent higher than the collection of fiscal year 2019/2020.

In the budget presentation, the government has declared this budget as tax-free as no tax or duty has been levied to provide relief to the masses in this pandemic.

However, as per the notification, an additional customs duty at two percent has been imposed on goods imported under tariff slabs of zero percent, three percent, and 11 percent.

Another rate of four percent additional customs duty has been levied on goods imported under tariff slab of 16 percent.

While, the rate of seven percent additional customs duty has been applied to goods imported falling under tariff slab of 20 percent or, above.

However, the edible crude oil that is subject to import at higher tariff slab, shall still be charged with an additional customs duty at the rate of two percent.

The FBR further said that additional customs duty would not be applicable to the goods imported under the concessionary regime for exporters.

Further, the additional customs duty shall also not be applicable to the contractors and services companies for offshore projects.

01 July 2020