Business Recorder

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Taxation: Pakistan

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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.
Federal Board of Revenue Chairman Salman Siddiq on Friday categorically denied allegations of figures fudging and explained the authenticity of the foolproof 'Cash Reporting System' and 'Reconciliation Reporting System' having minimum margin of adjustment in reporting of revenue collection figures of the FBR.
ImageThe small clubs charging not more than Rs.30,000 as membership fee and not more than Rs.100 as monthly subscription have been exempted from sales tax on services, said a notification issued by the Sindh Revenue Board (SRB) here on Thursday.
In a bid to facilitate the taxpayers, Federal Board of Revenue has decided to extend the office timings of all the Large Taxpayer Units (LTUs), Regional Tax Offices (RTOs) and Tax Facilitation Centres on 30th and 31st December 2011, beyond office hours up to 10:00 pm for receiving of returns and payment of taxes from the corporate sector, which are due on 31st December 2011.
There is a legal ambiguity in the Income Tax Ordinance 2001 on the chargeability of tax from owner of goods transport vehicle due to conflicting provisions of the said Ordinance. It is learnt here on Thursday that Waheed Shahzad Butt a leading Lahore-based lawyer has written a letter to the FBR Member Inland Revenue to clarify applicability of tax on the owner of goods transport vehicle.

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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 Saturday.
BuyingRs 90.40
SellingRs 90.45
Rates keep coming down

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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