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Taxation: Pakistan

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Pakistan on Friday for the first time allowed import tariff concessions to Afghanistan under the South Asia Free Trade Agreement (Sata). The Federal Board of Revenue (FBR) has amended SRO 1274 (I) 2006 dated December 29, 2008 through SRO 80(I) 2012 issued here on Friday and included the name of Afghanistan in the list of countries designated as ''Least Developed Countries'' (LDCs) under Safta.

The condition for manufacturers, importers and exporters to give the Computerised National Identity Cards (CNICs) numbers or National Tax Numbers (NTNs) of unregistered buyers under SRO 821(I)/2011 would now be implemented in a phased manner through a Statuary Regulatory Order (SRO) likely to be issued next week.
Federal Board of Revenue (FBR) and Sindh Revenue Board (SRB) have agreed to form separate committees which would resolve the long- standing issues between both the tax-collection-bodies, Business Recorder has learnt here on Friday. Sources inside the SRB told that FBR has been agreed to form a committee while, SRB would also constitute a committee, both would resolve the issues continue between the FBR and SRB.
The 9th meeting of Regional Tax Advisory Committee (RTAC) was held at the Conference Hall of RTO, Rawalpindi on January 25, 2012 with Shahid Anwar Khan, Chief Commissioner Inland Revenue, in the chair.
The World Bank has proposed to the Federal Board of Revenue to rationalise the number of staff and employees to improve efficiency of the tax administration under reforms. Sources told Business Recorder here on Friday that the WB mission has submitted a report to the FBR on the ''lessons learned from the Tax Administration Reform Project of the FBR''.
Dual tax rates at import stage for manufacturers and other importers are hindering the import process, causing delay in production activity. In a letter issued by Karachi Tax Bar Association (KTBA) to the chairman of Federal Board of Revenue (FBR) and Member Inland Revenue, FBR, has highlighted that the taxpayers are facing serious hardship in import process as the rate prescribed in the Income Tax Ordinance 2001 for manufacturers at import stage was 3 percent of the import value and other importer are liable for 5 percent withholding tax of the import value.
Chief Executive Officer and Managing Director of the Lahore Stock Exchange (G) Limited Aftab Ahmed Chaudhry has said that the investors seeking to avail leverage position in the stock market has been given relief through modification of Financing Participation Ratio (FPR) whereas previously the Finances were required to deposit 25 percent cash to carry his long Ready Market position through MTS beyond the T+2 Rolling Settlement System.

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Banking Review 2011


The Wall

ArrowEuro 1.3158
ArrowSterling 1.5815
ArrowSwiss Franc 0.9182
ArrowYen 76.6015
ArrowGold 1740.300
ArrowCotton 96.340
ArrowOil 97.840
Index Closing Chg%
Arrow DJIA 12,862.20 1.23
Arrow Nasdaq 2,905.66 1.61
Arrow S&P 1,344.90 1.46
Arrow FTSE 5,901.07 1.81
Arrow DAX 6,766.67 1.67
Arrow CAC-40 3,427.92 1.52
Arrow Nikkei 8,831.93 0.51
Arrow H.Seng 20,757.00 0.08
Arrow Sensex 17,605.00 0.99

The Rupee

Interbank closing rates for dollar on Friday.
BuyingRs 90.40
SellingRs 90.45
All-round decline

Annual2010/11
Foreign Debt $59.53bn
Per Cap Income $1254
GDP Growth 2.4%
Average CPI 14.10%
MonthlyDecember
Trade Balance $-2.41 bln
Exports $1.85 bln
Imports $1.26 bln
WeeklyJanuary 26, 2012
Reserves $16.802 bln
ArrowBRIndex-30 9,104.17
ArrowKSE-30 Index 11,258.08
ArrowKSE-100 Index 11,982.62
ArrowLSE-25 Index 3,122.96
ArrowISE-10 Index 2,627.71
ArrowGold Per 10gm 50,914.00
ArrowKCA Spot Rate 5,700.00
ArrowLibor Rate 0.76850

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