Day: October 29, 2023

The Federal Board of Revenue (FBR) has constituted special groups of senior tax officials for the restructuring of Pakistan Revenue Automation Limited (PRAL) to get rid of over-staffing and cut unnecessary expenditures.

In this connection, the FBR has issued a notification on the constitution of sub-groups for restructuring and revitalization of PRAL.

In pursuance of a consultative meeting held for “Restructuring and Revitalization of PRAL,” it was decided that sub-groups comprising FBR officers shall be constituted who would share proposals for restructuring and revitalization of PRAL.

Two subgroups have been constituted in this regard. The Sub-group I for rationalization/right-sizing of PRAL Human Resources and Sub-group II for restructuring of PRAL’s Expenditure.

Under the terms of the reference (TORs) of the Sub-group-I, it will assess the existing workforce of PRAL and the current workforce structure, including skill sets, roles, and responsibilities, and identify areas where workforce right-sizing is required and give recommendations.

The sub-group will also identify any overstaffing or understaffing issues and assess the alignment of the workforce with the company’s strategic objectives.

The Sub-group (II) has been set up for restructuring PRAL’s expenditure. The TORs of Sub-group (II) included reviewing the revenue and expenditure of the company and assessing their alignment with the company’s strategic objectives and financial stability. The sub-group will also identify expenditures that are not in line with the functions assigned to PRAL.

It will evaluate whether the current pay structure of the employees in various groups is commensurate with their roles and responsibilities.

The sub-group will give recommendations for improvement in the fiscal management of the company to ensure optimal allocation of resources for guaranteeing financial stability.

In addition to the mentioned TORs, both sub-groups shall also recommend changes to be made in the Service Level Agreement (SLA) for the current financial year and the remaining payment of the SLA between PRAL and FBR for the previous year.

Both sub-groups will share recommendations regarding all aspects to the office of Chairman FBR within 15 days of issuance of this notification.

Source: Pro Pakistani

Customs Intelligence has filed a case before the Special Judge (Customs Taxation and Anti-Smuggling) against famous Muhammad Hanif Jewani, a famous builder and developer, on the allegations of money laundering.

According to a document, Customs Intelligence Karachi has made a unique case of money laundering of over Rs. 3 billion involving placement, mingling, layering of proceeds of crime and its integration in the economy.

Owners/directors/partners of a Group of Companies were involved in conspiring and then carrying out placement, parking and integrating proceeds of crime in a residential project known as “HSJ Icon” under the umbrella of a group entity/company “HSJ Construction”, which upon initial enquiry, was found to be neither registered with the Federal Board of Revenue (FBR) and nor is a tax-filer.

Therefore, it was in reality HSJ Builders and Developers which has launched and is constructing the said building. HSJ Builders and Developers is a firm/Association of Persons comprising of accused persons Muhammad Hanif Jewani and Ahmed Hanif Jewani, father and son respectively, who during preliminary investigation were found involved in the commission of, inter alia, predicate offence under Section 32 of the Customs Act 1969 punishable under clause (14) of Section 156(1) of the Act ibid.

It surfaced during initial enquiry that the aforesaid predicate offence had been committed by the accused persons through use of another company HSJ Metals Pvt. Ltd. which was involved in illegal removal of 14,392 MT of Iron and Steel waste and scrap and Silico-Manganese from the Private Bonded Warehouse Super Highway, Nooriabad.

As a result of stocktaking, only 3,761.89 metric tons plus approximately remaining stock of 700 to 1,000 metric tons were found available instead of balance quantity of 18,854 metric tons as on 20-03-2023, thereby establishing that directors of importer/licensee had unlawfully removed 14,392 metric tons of in-bonded goods valued at Rs. 2.17 billion without payment of duty/taxes to the tune of Rs. 716 million.

Proceedings were accordingly initiated for violation of the Customs Act, 1969 and Sections 3, 6, 33 and 34 of the Sales Tax Act, 1990 and Section 148 of the Income Tax Ordinance, 2001, on account of which subsequently under Order-in-Original N0. 33,023 dated 02-05-2023. The liability of the importer/licensee was held at Rs. 716 million in terms of evasion of duty/taxes along with default/additional surcharge to be calculated at the time of actual payment and personal penalty of Rs. 10 million.

That resultant recovery proceedings initiated under section 202 of Customs Act 1969 for Rs. 1.38 billion as of 30-06-2023 did not succeed due to the fact that the bank accounts of HSJ Metals Pvt. Ltd. had no funds whatsoever available in the said bank accounts.

It is reported that right up-to the time when the wrong-doing of the accused persons surfaced, they had been manufacturing Steel Bars which were sold in the market as well as used in the construction of HSJ Icon.

In this manner, the accused persons, other than using the Steel Bars made from non-duty/taxes paid Waste Scrap and Silico Manganese, also diverted the funds obtained from the sale of illegally manufactured Steel Bars towards the construction of HSJ Icon.

It is accordingly established that the accused persons are involved in the offence of money laundering by using the “proceeds of crime” by way of developing and progressing the project HSJ Icon from the funds of HSJ Metals Pvt. Ltd which should have been paid in the government exchequer, while at the same time receiving monies from the allottees of flats and shops in the project thus layering the scam in an organized manner.

The facts revolving around being such that the same individuals operating and managing two sister entities, one of which is involved in generation of proceeds of crime and the other in placement and integration of such proceeds, through an unregistered and non-filer entity as an intermediary, the case falls within the ambit of the provisions of the Anti-Money Laundering Act, 2010.

Accordingly, the modus operandi mentioned as above resulted in money-laundering to the tune of Rs. 3.5 billion (evaded duty/taxes of Rs. 716 million, surcharge (calculated up-to 30-06-2023) of Rs. 665 million and Goods Value of Rs. 2.17 billion) by Muhammad Hanif Jewani and Ahmed Hanif Jewani of HSJ Metals Pvt. Ltd, HSJ Construction and HSJ Builders and Developers, through commission of, inter alia, the predicate offence in terms of Section 32 of the Customs Act 1969 punishable under clause Section 56 of Customs Act. 1969 within the meaning of Sections 3 and 4 of the Anti-Money Laundering Act, 2010 read with Section-VI(e) of its First Schedule.

Source: Pro Pakistani

Caretaker Federal Minister for Finance Dr Shamshad Akhtar and FBR Chairman Malik Amjed Zubair Tiwana Saturday visited Overseas Investors Chamber of Commerce and Industry (OICCI) and Korangi Association of Trade and Industry (KATI) in Karachi and held meeting with their representatives.

The meeting was also attended by all chief commissioners-IR and Chief Collectors Customs heading their respective field formations stationed in Karachi.

The representatives of OICCI and KATI acknowledged the efforts of FBR field formations in taxpayers’ facilitation and revenue mobilization while also highlighting the issues like complicated tax compliance, over regulation, absence of documentation at cottage industry level, narrow tax base, non-filers, transit trade and IT glitches faced by exporters. The minister explained measures current government has undertaken to stabilize economy and to ensure optimum revenue collection.

During the meeting, the FBR chairman discussed issues raised by representatives of both bodies and assured them that their concerns will be addressed instantly. He also emphasized on recent important initiatives taken by FBR like designating 50 percent of RTOs workforce for Broadening of Tax Base, Track and Trace System and crackdown on non-duty paid goods.

The minister and FBR chairman also visited LTO, Karachi and held meeting with Chief Commissioner-IR, Chief Collectors Customs and Commissioners-IR. During the meeting, the minister appreciated FBR field formations for exceeding collection target during the first quarter of the current financial year and directed CCIRs to continue making endeavors to meet the budgetary target fixed for the year.

Source: Pro Pakistani

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet tomorrow (Monday) to decide about the Monetary Policy.

The central bank will issue the Monetary Policy Statement through a press release on the same day.

At its last meeting on September 14, the MPC decided to maintain the policy rate at 22 percent. At the time, the MPC statement said that the decision took into account the latest inflation outturn reflecting the continuing declining trend in inflation from its peak of 38 percent in May to 27.4 percent in August 2023.

Market analysts expect the MPC to keep the policy rate unchanged. According to a recent survey conducted by Topline Securities, 70 percent of participants expect the policy rate to remain unchanged at 22 percent. 16 percent of participants expect the policy rate to down by 25-100bps and 11 percent of participants expect it to down by more than 100bps.

Just 3 percent expect the policy rate to increase by more than more than 100bps and no one expects it to increase by 25-100bps.

Source: Pro Pakistani

The price of gold in Pakistan rose by Rs. 2,000 per tola on Saturday to close at over Rs. 213,000.

According to the data released by the All-Pakistan Gems and Jewellers Association (APGJA), the price of gold (24 carats) rose by Rs. 2,000 per tola to Rs. 213,300 while the price of 10 grams soared by Rs. 1,714 to Rs. 182,000.

The price of gold had increased by Rs. 1,250 per tola on Monday before dropping by Rs. 750 per tola and Rs. 400 on Tuesday and Wednesday respectively. On Thursday the price rose by Rs. 2,900 per tola while Friday saw the price drop by Rs. 50. The increase on Saturday means that, cumulatively, the price of gold has gone up by Rs. 4,950 per tola during the week.

It is pertinent to mention here that the price of precious metal also registered an increase of Rs. 6,350 per tola last week. This means that the last two weeks have seen the price soar by Rs. 11,300 per tola.

Source: Pro Pakistani