Amer Haroon & Co. Chartered Accountants

12/02/2023

Pakistan's Economic Improvement Strategies to improve the current economic situation of Pakistan.

Improving the economic situation of Pakistan would require a multi-pronged approach, including the following measures:

Fostering economic growth: The government should focus on promoting economic growth through measures such as increasing foreign investment, reducing red tape and bureaucracy, and supporting small and medium-sized enterprises.

Tax reforms: A more efficient tax system, including broadening the tax base, simplifying tax laws and regulations, and improving tax collection, could help increase government revenue and support economic growth.

Energy sector reforms: Addressing the energy crisis and improving the country's power supply is essential for promoting economic growth and attracting foreign investment. This could be done through measures such as increasing investment in renewable energy, improving energy efficiency, and reducing subsidies for energy-intensive industries.

Agricultural sector development: The agricultural sector is a significant contributor to Pakistan's economy and employment, and improving it could have a positive impact on economic growth. This could include increasing investment in research and development, improving access to credit and markets, and reducing post-harvest losses.

Education and skill development: Investing in education and training programs to increase the skills and knowledge of the workforce could help to increase productivity and competitiveness.

Corruption control: Corruption is a significant problem in Pakistan and tackling it could help to improve the business environment and attract foreign investment. This could include measures such as increasing transparency, accountability, and improving the rule of law.

Fiscal reduction: Reducing government debt is also important for improving the economic situation of Pakistan. This could include measures such as reducing government spending, improving tax collection, and attracting foreign investment.

Implementing these measures would require a concerted effort from the government, the private sector, and the public, and would likely take time to show results. However, with persistence and commitment, the economic situation of Pakistan could be significantly improved.

Your feedback will be much appreciated.

Regards,
Amer Haroon Tangwani (FCA)

13/07/2020

The Digital Assurance and Accounting Board has kicked-off a series of activities including exclusive webinars on the future of the and profession in the digital world. The first webinar titled 'Digital Audit Evolution: Shaping the next generation of auditors' is planned with one of the most critical challenges of revolutionizing conventional audit into a digital audit.

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Date: Thursday, July 16, 2020
Time: 03:00 pm to 05:30 pm

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25/06/2020

At its meeting on 25th June 2020, the Monetary Policy Committee (MPC) decided to reduce the policy rate by 100 basis points to 7 percent. This decision reflected the MPC’s view that the inflation outlook has improved further, while the domestic economic slowdown continues and downside risks to growth have increased. Against this backdrop of receding demand-side inflation risks, the priority of monetary policy has appropriately shifted toward supporting growth and employment during these challenging times.

25/06/2020

At its meeting on 25th June 2020, the Monetary Policy Committee (MPC) decided to reduce the policy rate by 100 basis points to 7 percent. This decision reflected the MPC’s view that the inflation outlook has improved further, while the domestic economic slowdown continues and downside risks to growth have increased. Against this backdrop of receding demand-side inflation risks, the priority of monetary policy has appropriately shifted toward supporting growth and employment during these challenging times.

13/06/2020

13/06/2020

BUDGET 20-21
BULLET POINTS

1- No new tax to give relief to people
2- Ahsas program to continue by increased budget
3- To improve tax collection
4- To decrease in govt. expenditure
5- To improve subsidy system
6- Poverty elevation program
7- Higher education budget increased
8- Measures taken to improve remittances
9- Kamyab Naujawan program budget introduced
10- To improve public services through E-governance
11- Artist welfare fund increase
12- Inflation to be decrease
13- FBI increase by 25%
14- To improve health services by ICT
15- To open smart schools
TAXES :
16- POS of retailer business to increase
17- 14% to 12% sales tax on retailers
18- Hotel minimum tax decrease to 0.5% July to September
19- Fixed tax scheme introduced for Small and medium businesses
20- Export rebate, to direct transfer in business bank accounts
21- Raw Material fully exempt from custom duty to respective nature of businesses having 20000 items
22- Custom duty of 200 items in tariff line decrease
23- PRD to decrease
24- Poor people benefits --- corona—supplements etc to be exempted from duties and taxes
25- Custom official powers has been decreased
26- Inclusive of advance ruling methods in custom law
27- Unregistered sales tax person—CNIC condition from 50 thousand to one lakh
28- Covid 19 sales items exemption period increased
29- 237 sro for relief extended for further 3 months
30- 11th schedule of sales tax to improve
31- Increase in FED in all type of ci******es and its articles increased to 100%
32- Caffine items FED from 13 to 25%
33- Double pick up FED to be taxed as other vehicles
34- 17% sales tax on potassium cholaride decrease

35- 14% sales tax decrease to 12% of big retailers
36- Wastage to fixed in manufacturing business
37- 12 schedule sales tax of VAT—manufacturers no sales tax
38- Cement sector decrease from 2 to 1.75 per kilo
39- If Appeal than reference can be made to following years
40- ADRC law to be change
41- STAY provision to be made in ADRC
42- FED law to be enhanced
43- Sales tax act 9th schedule mobile phone manufacture decrease in sales tax
44- E Audit / video link introduced for audit
45- Online sharing of assess data introduced
46- WHT Regime to delete 9 sectors (Education and marriage hall etc)
47- Commercial importer and manufacturer importing on raw material and machinery from 5.5 top 2% and 1%
48- Machinery examination certificate abolished
49- Aop and individual allowed expenditure to be claimed against property Income
50- Foreign remittances transfer from one bank to another – no tax on that
51- Tax Refund procedure – now changed – one centralized system introduced
52- 152 WHT of non resident for Hajj Companies
53- Advance tax abolished under section 231b and 234 on rickshaw and cars
54- Advance tax payment threshold increased
55- Exemption certificate through automation system
56- Schedule 12 Exemption certificate for advance tax to be produced by person who had already paid advance tax
57- RIET residential properties CGT period extended
58- Free Zone benefits also to be given modern developers
59- To simple law and business only for PE tax deduction to be made
60- Tax deduction under section 235 now fully adjustable
61- Inclusion in Active tax payer list, proper enquiry to be conducted
62- Automatic return process system to be introduce for any error in return if any
63- For and increase in data base and WHT 236V to be introduce
64- Non resident and resident tax should be same
65- Purchase and leased vehicle threshold to be same
66- Depreciation to be as per best international practice
67- NPO status per 2nd schedule section 100C condition to be strictly followed and only those NPO be there who benefits the community in general
68- 10% tax to be paid while filing appeal
69- Auto system advance tax to introduce through IRIS by 5th of every advance tax due date
70- CGT on Immoveable property decrease from 5 years to 4 years
71- Non Resident- royalty, fees etc to be decrease

72- FTR to be filed with section 114
73- Appeal fees increased
74- Section 165 WHT for bio annual now to be filed by 3 months instead of 6 months
75- Immoveable taxation CGT from 8 to 4 years and every year decrease by 25%

Further refer to salient features and brief of budget.

12/06/2020

Retailers for obtaining CNIC of the buyers is to be increased from Rs 50,000 to 100,000 !!!

12/06/2020

Growth figure goes down to negative for the first time in last 70 years !!!

15/05/2020

State Bank of Pakistan has reduced policy rate by 100 bps. Bringing down to 8%. We were looking forward to 7 %.

13/05/2020

The Rs442bn agreement includes construction of main dam, diversion system, access bridge and 21MW Tangir Hydropower Project