PRO 14-08-2012_Layout 1 8/13/2012 11:45 PM Page 1
Tuesday, 14 august, 2012
‘Gas and oil price hike to bring more disappointment for industry’
FPCCI for restoring facility to adjust accumulated carry forward amount ISLAMABAD aPP
LAHORE
T
ONLINE
he Lahore Chamber of Commerce and Industry (LCCI) Monday took a strong exception to the Oil and Gas Regulatory Authority (OGRA) for making around 15 per cent increase in gas tariff without any prior notice to the industry. In a statement issued here, the LCCI President Irfan Qaiser Sheikh said that it would cast devastating repercussions on local industry and oust the export-oriented industries from the international export market. The LCCI President said that the raise incorporated in the industrial gas bills for the month of July has created multiple problems for the industrialists as the authorities kept them in the darkness about the hike and resultantly they could not include it into their cost. The LCCI President said that when the government functionaries or Ministers visit LCCI, they always vow to take the private sector on board on all future decisions but it is very unfortunate this time they did not bother to consult the LCCI or any other sector-specific association while jacking up the gas tariff. Irfan Qaiser Sheikh said that the impact of this
Overseas Pakistanis remit $ 1.2 billion KARACHI
increase would be much bigger than the expectation of the government who should avoid any such decision keeping in view the economic scenario in the country. Sheikh said that Rs 100 MMBTU increase in the gas tariff will put extra burden on cash starved industry therefore the OGRA authorities should immediately withdraw this raise. The LCCI President said that if the OGRA authorities fail to take this back, there are a number of associations who would be moving court against this unilateral decision. “By making such decisions, the OGRA is not doing any service to the industry but actually the people are opening up gate for litigation,” he said. he said that at a time when all the governments in the world were facilitating their respective private sectors, the situation in Pakistan is the other way round and various government departments were tightening noose around the private sector. While quoting the example of textile sector, the LCCI President said that it is one of the most value-added and export-oriented sectors in Pakistan, which accounts for more than 60 percent of total exports of the country. 95 per cent of its inputs are locally produced and by making energy out of their reach, government is in fact curbing the use of local inputs.” he said that even the slightest raise in the cost of production, at this critical juncture, would, therefore, spell doom and oust Pakistani merchandise from the international export market which would deprive the exchequer of muchneeded valuable foreign exchange to the tune of billions of dollars.
TIP floats proposals to FBR for bringing telecom, internet companies under GST net
aPP
Overseas Pakistanis remitted an amount of $1,204.71 million in July 2012 showing an impressive growth of 9.89 percent or $ 108.40 million when compared with $ 1,096.31 million received during the same month of the last fiscal year (FY12). According to SBP here Monday, the inflow of remittances during July 2012 from Saudi Arabia, UAe, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and eU countries amounted to $349.66 million, $240.54 million, $215.30 million, $148.49 million, $140.36 million and $30.83 million respectively compared with the inflow of $291.83 million, $257.65 million, $194.87 million, $118.55 million,$116.45 million and $32.59 million respectively in July 2011. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the last month amounted to $79.53 million as against $84.37 million received in the same month of the last fiscal year (FY12). The continued impressive growth in workers’ remittances was the result of the efforts made by Pakistan Remittance Initiative (PRI) in collaboration with other stakeholders to facilitate both Overseas Pakistanis and their families back home. Since its inception, PRI has taken a number of steps to enhance the flow of remittances through formal channels which include: (a) preparation of national strategies on remittances (b) taking all necessary steps to implement the overall strategy (c) playing the advisory role for financial sector in terms of preparing a business case, relationship building with overseas correspondents, creating separate efficient remittance payment highways and (d) becoming a national focal point for overseas Pakistanis through round the clock call centre (021-111-222-774) with toll free lines, separate web site etc.
ISLAMABAD Tayyab HussaIN
Transparency International Pakistan (TIP) Monday recommended the Federal Board of Revenue (FBR) Chairman, the top revenue collecting agency of the country, to make a foolproof system for the transfer of general-sales-tax (GST) collected on sale of pre-paid cards by five Cellular Companies, PTCL, wireless phone and Internet Companies. The recommendation has been made after a tax evasion scam surfaced after the national accountability bureau (NAB) launched investigation into tax-evasion amounting to Rs 47 billion against five major telecom operators. This allegation however has time and again been denied by telecom operators as well as the FBR. The NAB also moved an application with the apex court to put FBR officials’ names on the exit control list (eCL). In a letter sent by TIP advisor Syed Adil Gilani to FBR Chairman Ali Arshad hakeem, TIP
said the prepaid cards were being sold by five Cellular Companies, PTCL, wireless phone and Internet Companies to outlets/shopkeepers in cash by all these companies, and then the outlets sell them to public. “The FBR may make a policy, and direct all Cellular Companies, PTCL, wireless phone and internet providers to get the pre-paid cards stamped as GST collected, and numbered by the FBR prior to sale. These companies shall deposit the 19.5% GST when they take the delivery of pre-paid cards duly stamped and numbered by FBR,” suggested the TIP. Gilani said through introduction of this new system, the leakage of GST on prepaid cards will be stopped and the FBR was expected not only to collect 100% GST on prepaid cards (in the TIP suggested system estimated to be 8-10 billon monthly). “This will also enable savings on loss of bank interest on the delayed deposit of GST of 30 days as per current procedure, which will add billions of rupees revenue to the exchequer”.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Chairman Federal Board of Revenue (FBR) that the tax payers be allowed to adjust their accumulated carry forward amount of input tax In a statement issued here on Monday, FPCCI President haji Fazal Kadir Khan Sherani of said that after harmonization of sales tax rate in Finance Act 2012, the higher rate regime was eliminated which was generally welcomed. however, it has been observed that persons having accumulated carry forward amount in their sales tax returns pertaining to previous higher sales tax rates regime, were not provided any relief for its adjustment. he added that previously such taxpayers were excluded from the applicability of section 8B of Sales Tax Act vide S.R.O 647(I) 2007 dated June 27, 2007 but after doing away with the higher Sales Tax rates regime in the current budget, carry forward cannot be adjusted since condition of 8B is now applicable on them. Consequently such tax payers would be unnecessarily burdened to pay 10% sales tax despite of their accumulated carry forward amounts, pertaining to higher tax rates (upto 22%) regime, available to them, he informed.
Google plans 4,000 layoffs at Motorola KARACHI aFP
Internet giant Google on Monday said it plans to lay off about 4,000 employees at Motorola, a cellphone maker it purchased in May, in order to return the company to profitability. “While we expect this strategy to create new opportunities and help return Motorola’s mobile devices unit to profitability, we understand how hard these changes will be for the employees concerned,” a company spokesperson told AFP. According to The New York Times, the reorganization plan calls for laying off about 20 percent of Motorola’s workforce and closing a third of its 94 offices worldwide. About two-thirds of the affected 4,000 jobs will be lost outside of the United States, according to the report. The company plans to leave unprofitable markets, stop making low-end devices and reduce the number of cell phone models it is producing, the paper said. The Google spokesperson said help will be provided to those whose jobs were being cut. “Motorola is committed to helping them through this difficult transition and will be providing generous severance packages, as well as outplacement services to help people find new jobs,” the spokesperson said.
Asian markets mostly down, dealers await stimulus LAHORE aFP
Asian markets mostly fell on Monday as dealers awaited fresh stimulus drives by the central banks of the United States, europe and China, while Japanese data showed growth slowing. Tokyo ended flat, edging down 0.07 percent, or 6.29 points, to 8,885.15, Seoul fell 0.72 percent, or 13.96 points, to 1,932.44 but Sydney gained 0.14 percent, or 6.0 points, to close at 4,283.3. In the afternoon hong Kong fell 0.36 percent while Shanghai was down 0.58 percent. The losses come after global shares enjoyed broad gains last week on expectations the european Central Bank will restart its bond-buying scheme to support under-pressure economies such as Spain and Italy. There are also hopes the US Federal Reserve will unveil its own drive to pump cash into the economy, while another batch of poor trade figures from China on Friday increased the likelihood Beijing will also intervene to kickstart growth. On Monday morning Japan released data showing
its economy grew just 0.3 percent in April-June from the previous quarter, the fourth consecutive rise but a slower pace than before. The figures were significantly weaker than market expectations for a 0.7 percent increase, as exports slowed due to falling global demand, especially from the debt-wracked eurozone. It also marked a sharp contrast from a brisk 1.3 percent increase in the January-March period. In afternoon forex trade the euro stood at $1.2277 and 96.10 yen, down from $1.2291 and 96.16 yen on Friday in New York. The dollar bought 78.28 yen, from 78.25. “There are increased hopes of further easing in response to the China data on Friday,” said Stan Shamu, market strategist at IG Markets in Melbourne. “This ramped up toward the close of the US (on Friday) and has filtered through to Asian trade,” he told Dow Jones Newswires. On Wall Street the Dow ended 0.32 percent higher, the S&P 500 added 0.22 percent and the Nasdaq edged up 0.07 percent. Oil was up in afternoon trade, with New York’s main contract, light sweet crude for delivery in September gaining 48 cents to $93.35 a barrel and Brent
North Sea crude for September delivery advancing 78 cents to $113.73. Gold was at $1,622.40 at 0640 GMT, from $1,609.15 on Friday. In other markets: Wellington rose 0.48 percent, or 17.17 points, to 3,594.96. Fletcher Building was up 2.2 percent at NZ$6.54 and Telecom Corp climbed 0.6 percent to NZ$2.71. Taipei was flat, edging down 4.82 points to 7,436.3. Taiwan Semiconductor Manufacturing Co was 0.85 percent higher at Tw$82.7 while leading smartphone maker hTC lost 3.23 percent at Tw$240.0.