Category Archives: General Business News

LCCI flays misuse of discretionary powers by FBR

Lahore, February 23, 2018 (PPI-OT): The Lahore Chamber of Commerce and Industry has expressed grave concern on new wave of raids at business premises by the staff of Federal Board of Revenue despite clear instructions of Lahore High Court. In a statement, the LCCI President Malik Tahir Javaid and Senior Vice President Khawaja Khawar Rashid said that FBR staff has started again misuse of Section 38-B and 40-B of Sales Tax Act, 1990 against the business community.They said that Lahore High Court has barred Federal Board of Revenue from conducting raids at business centers but FBR staff has ruined the court’s order.

They said that businesses are already in a complicated state-of-affairs while anti-business actions against business community are not only adding to the miseries of the business community but are also promoting trust deficit between the government and the business community. The LCCI office-bearers said that misuse of section 38 and 40-B is grinding the business community.

Prime Minister Shahid Khaqan Abbasi should take notice of the situation immediately otherwise FBR staff would cause huge damage, not only to the business activities but to the government’s reputation as well. They said FBR staff is visiting markets and business premises to unjustifiably harass the business people.

The LCCI office-bearers said that FBR should stop harassing filers as non-filers and ones outside the tax net are not accounted for at all which discourages businesses to come into the tax net. Registered businesses are required to comply with various departments involving a lot of financial and time resources whereas unregistered businesses are free from all such hassles.

They said that attaching bank accounts for recovery of outstanding dues is also hampering business growth and tarnishing the business-friendly image of the government. They said that bank accounts should not be attached without prior notice to the taxpayer and after seeking approval in writing of Commissioner in the light of reply submitted by the taxpayer. The recovery should be after the decision of the Tribunal and not before that.

They said that instead of focusing on controlling under-invoicing, curbing smuggling and expanding the tax net, the FBR seems to be inclined to pressurize registered taxpayers who are already suffering due to high rate of sales tax, income tax and Custom duties by creating fictitious cases for recovery of outstanding dues to meet revenue target.

For more information, contact:
Information Department
Lahore Chamber of Commerce and Industry (LCCI)
11-Shahrah-e-Aiwan-e-Tijarat,
Lahore -54000, Pakistan
Tel: +92-42-111-222-499
Fax: +92-42-36368854
Website: www.lcci.org.pk

Realtors call for tax amnesty scheme to promote investment in real estate sector

Islamabad, February 23, 2018 (PPI-OT): A delegation of Real Estate Consultants Association, DHA, Islamabad led by President Col. Z Munawar Heral visited Islamabad Chamber of Commerce and Industry (ICCI) and apprised ICCI office bearers of the problems being faced by the real estate sector. Arif Jeewa, Chairman, Association of Builders and Developers of Pakistan, Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI were also present at the occasion.

Addressing the delegation, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that real estate sector has the potential to promote investment, industry, economic growth and employment, however, government imposed heavy taxes on it in budget 2016-17 that have badly affected its growth.

He said that growth of around 250 ancillary industries including cement, steel, brick, timber and building material was dependent on real estate sector, but the increase in taxes has slumped the business of all these allied industries. He urged that government should cut heavy taxes on this sector in the coming budget for its revival. He assured the Real Estate Consultants Association DHA Islamabad that ICCI would fully cooperate in resolving their key issues.

Arif Jeewa, Chairman ABAD said that real estate sector played important role in the economic development of any country, but heavy taxes on this sector in Pakistan have damaged its growth. He said many investors were now leaving real estate sector that was not good for the economy. He cautioned that if government did not pay urgent attention to resolve the key issues of real sector, it would discourage new investment in the country and give rise to unemployment.

Speaking at the occasion, Col Z Munawar Heral President and Muhammad Ahsan General Secretary, Real Estate Consultants Association DHA Islamabad said that since July 2016, government has increased 100 percent taxes on real estate sector that caused 50 to 60 percent reduction in its business activities. They said heavy taxes on this sector have forced the investors to shift their capital outside the country.

They stressed that government should withdraw heavy taxes on this sector and announce a general amnesty scheme for it to attract investment from expatriates and Pakistanis. They said a flat rate of 5% gain tax should be charged on this sector. They said if government wanted fair market value of property, it should abolish all taxes on real estate and charge 0.5% tax on filers and 1% on non-filers on sale and purchase of property.

Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI said that the economy of Pakistan was facing many challenges and real estate sector has the potential to steer it out of troubles. They stressed that government should reduce taxes on real estate sector in order to promote investment and create new jobs that would trigger the economic growth of the country.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1,
Islamabad, Pakistan
Tel: +9251 225 0526, 2253145, 8432676
Fax: +9251 225 2950
Email: icci@brain.net.pk
Website: www.icci.com.pk

FPCCI hails statements of Tax Ombudsman on Release of Rebates

Islamabad, February 23, 2018 (PPI-OT): A delegation of Real Estate Consultants Association, DHA, Islamabad led by President Col. Z Munawar Heral visited Islamabad Chamber of Commerce and Industry (ICCI) and apprised ICCI office bearers of the problems being faced by the real estate sector. Arif Jeewa, Chairman, Association of Builders and Developers of Pakistan, Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI were also present at the occasion.

Addressing the delegation, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry said that real estate sector has the potential to promote investment, industry, economic growth and employment, however, government imposed heavy taxes on it in budget 2016-17 that have badly affected its growth.

He said that growth of around 250 ancillary industries including cement, steel, brick, timber and building material was dependent on real estate sector, but the increase in taxes has slumped the business of all these allied industries. He urged that government should cut heavy taxes on this sector in the coming budget for its revival. He assured the Real Estate Consultants Association DHA Islamabad that ICCI would fully cooperate in resolving their key issues.

Arif Jeewa, Chairman ABAD said that real estate sector played important role in the economic development of any country, but heavy taxes on this sector in Pakistan have damaged its growth. He said many investors were now leaving real estate sector that was not good for the economy. He cautioned that if government did not pay urgent attention to resolve the key issues of real sector, it would discourage new investment in the country and give rise to unemployment.

Speaking at the occasion, Col Z Munawar Heral President and Muhammad Ahsan General Secretary, Real Estate Consultants Association DHA Islamabad said that since July 2016, government has increased 100 percent taxes on real estate sector that caused 50 to 60 percent reduction in its business activities. They said heavy taxes on this sector have forced the investors to shift their capital outside the country.

They stressed that government should withdraw heavy taxes on this sector and announce a general amnesty scheme for it to attract investment from expatriates and Pakistanis. They said a flat rate of 5% gain tax should be charged on this sector. They said if government wanted fair market value of property, it should abolish all taxes on real estate and charge 0.5% tax on filers and 1% on non-filers on sale and purchase of property.

Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI said that the economy of Pakistan was facing many challenges and real estate sector has the potential to steer it out of troubles. They stressed that government should reduce taxes on real estate sector in order to promote investment and create new jobs that would trigger the economic growth of the country.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1,
Islamabad, Pakistan
Tel: +9251 225 0526, 2253145, 8432676
Fax: +9251 225 2950
Email: icci@brain.net.pk
Website: www.icci.com.pk

Federal Government approves reduction in prices of many brands

Islamabad, February 22, 2018 (PPI-OT):DRAP’s spokesperson has informed that Federal Government has introduced a transparent way through Drug Pricing Policy for price increase as well as decrease of MRP. It is a wrong impression that DRAP only increases the prices of medicines while truth is that DRAP has reduced the prices of a no. of brands having high sales volume. Drug Regulatory Authority of Pakistan has notified a Drug Pricing Policy-2015 with approval of its Policy Board, the Economic Coordination Committee (ECC) of the Cabinet and the Federal Government.

This Policy provides a transparent mechanism for fixation, decrease and increase in prices of drugs. Under the provisions of the said Policy, on the recommendation of the Authority, Federal Cabinet has approved reduction in Maximum Retail Prices of Originator Brands of above 59 products up to 10%. These brands include; Zantac Tablets 300mg and Injection, Risperdal Tablets 1mg, 2mg, 3mg and 4mg, Zocor Tablets 10mg, 20mg and 40mg, Concor Tablets 2.5mg, 5mg and 10mg, Cefspan Capsules 400mg and Suspension, Fortum 250mg, 500mg and 1gm injections, Ciproxin Tablets 100mg, Infusion 100mg and 200mg, Canesten-V 100mg and 500mg Tablets and Cream, Caflam Tablets 50mg, Zovirax Injection 250mg, Tablets and Cream, Amikin Injection 100mg, 250mg and 500mg, Imuran Tablets 50mg, Neupogen Injections 300mcg, Prozac Syrup, Engirex B Injection 10mcg and 20mcg, Cravit Tablets 250mg and 500mg, Singulair Tablets 4mg, 5mg and 10mg and Singulair 4mg Sachets, Cell Cept Tablets 500mg, Losec Infusion 40mg, Tamiflu Capsules 75mg, Taxol Injection 30mg and 100mg Eprex injection 1000IU, 2000IU, 3000IU, 4000IU, 10,000IU and 40,000IU.

The notification to this affect shall be issued in coming week. Besides the above stated products, Authority has reduced MRP of Lencentus Injection from Rs.98,000 to Rs.58,800/-. The Authority has also fixed prices of anti-hepatitis drugs; Daclatasvir 30mg and 60mg, Sofosbuvir + Velpatasvir Tablets at price which is lowest in the region. Furthermore, the Authority fixed prices of generics of anti-cancer drugs namely; Erlotinib Tablets 100mg and 150mg, Geftinib Tablets 250mg and Transuzumab 600mg Injection at prices at par with neighbouring countries.

By and large generics are much cheaper than Originator Brands. DRAP is trying to bring prices of medicines down by various strategies including registering generic medicines at low prices etc. Marketing of new products will enhance competition and availability of drugs in the market. This will ensure availability of new therapies for patients suffering from Hepatitis-B and C, Cancer, Diabetes, Hypertension, allergy, Infections, vaccination for Diphtheria, Pertussis and Tetanus, Hepatitis-B at affordable prices.

For more information, contact:
Principal Information Officer,
Press Information Department (PID)
Tel: +92-51-9252323, +92-51-9252324
Fax: +92-51-9252325, +92-51-9252326
Email: piopid@gmail.com
Website: www.pid.gov.pk

Nestle posts healthy revenue of PKR122 billion for 2017

Lahore, February 21, 2018 (PPI-OT): Nestle Pakistan posted a yearly sales revenue of PKR 122.2 billion for 2017, an increase of 8.7% compared to previous year. The healthy topline growth was achieved through effective innovation and renovation of the product mix, numeric distribution expansion and investment behind brands. Export sales during the same period stood at PKR 5.1 billion. The annual results were announced following a Board of Directors’ meeting at the company’s head office.

Operating profit for the same period increased to PKR 23.6 billion translating into 23.3% growth versus 2016, achieved as a result of internal efficiencies and effective cost and price management. Consequently, earnings per share have increased to PKR 322.86 from PKR 261.23 in 2016.

The company launched a number of new products during 2017, which included Nestle Milo Concentrate, Nestle Docello Creme Brule, Nestle Docello Panna Cotta, Nestle Nesvita Move+, Nestle Bunyad Choco, Nestle Fruita Vitals Exotic Mixes, Nestle Pure Life 330ml, Nescafe Classic Sachet and Nestle Nesvita Yogurt.

For more information, contact:
Corporate Media Relations Manager
Nestle Pakistan
308 Upper Mall, P. O. Box 874, Lahore, Pakistan
Tel: +92-42-35988119, +92-42-111-Nestle (637853)
Cell: +92-342-6662999
Email: aatekahahmad.mirkhan@PK.nestle.com
Website: www.nestle.pk

FPCCI appoints Kamran Saleem as Chairman of Takaful Standing Committee

Karachi, February 21, 2018 (PPI-OT): The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) appointed the Chief Financial Officer (CFO) and Company Secretary of Pak-Qatar Takaful Group (PQTG), Muhammad Kamran Saleem, as Chairman of (Central) Standing Committee on Takaful and Window Takaful. The appointment for this designation was conferred to Muhammad Kamran Saleem through a special letter by the President of FPCCI, thus adding another milestone in the company’s rapid progress. PQTG is a leading enterprise offering Takaful products (Family and General) across Pakistan.

Muhammad Kamran Saleem expressed his gratitude, and stated, “I am very pleased and excited to represent the Takaful industry as the Chairman of FPCCI’s (Central) Standing Committee on Takaful and Window Takaful. As the Pak-Qatar Takaful Group is committed to lead this promising sector and enrich the Islamic Financing models with innovative and more competitive products, this position will enable me to promote Takaful among the masses, encompassing education and awareness, while presenting an image that is consistent with our ideology and values.”

He further added, “The Pak-Qatar Takaful Group adheres to best ethical practices and complete transparency in all aspects of its operations, while abiding by the Shariah rules and law of the land. With this additional responsibility, I will strive to deploy more resources and support for the community to deliver excellence. Customer satisfaction and protection is the primary objective of the Takaful business, so we will develop more quality products and offer excellent services to our valuable consumers.”

Muhammad Kamran Saleem has previously served as the Vice-Chairman of Islamic Banking and Takaful Committee of the FPCCI. He has risen to the position of CFO by successfully managing multi-dimensional assignments and heading all the major functions in the company over the years. With an illustrative career and strong knowledge-base in Finance and Law, Mr. Saleem will play a key role in ensuring rapid growth in the Takaful industry, as integrity and transparency is the hallmark of Islamic finance.

Pak-Qatar Takaful Group is the pioneer of Takaful products in Pakistan, with presence in all major cities of the country. The Group is engaged in providing need-based, practical and profitable financial services to its members and participants throughout Pakistan.

For more information, contact:
Marketing Manager,
Pak-Qatar Family Takaful Limited
Tel: +92-21-34326076
Cell: +92-331-9234567
Fax: +92-21-34386451
Email: adnan.hasan@pakqatar.com.pk
Website: www.pakqatar.com.pk