Jul 17 - 23, 2000
CBR sets Rs90bn tax target
for 1st quarter
Central Board of Revenue (CBR) has set itself a tax collection target
of Rs90bn for the first quarter (July-Sept) of the financial year 2000-01.
The target of revenue collection for the new financial year has been
set at Rs435.7bn. The largest deposits (44.44%) in the total for the first quarter have
been estimated from the Sales Tax (Rs40bn.) The ST target for 2000-01 has been set at
Rsl72.6bn. The ST target for the first month of the financial year (July 2000) has been
set at Rsl2bn.
The sales tax wing expects Rsl5bn additional tax amount from the trade
and manufacturing sectors to be brought in into the net through the survey. The Direct
Taxes wing estimates to improve collection by Rs10bn on the basis of data to be computed
on assets and incomes during the survey. For the 12-month period, the CBR had initially
estimated a Rs100bn additional revenue from the expanded tax net on the basis of survey,
however, the CBR has given a second thought to these estimations.
The officials said the government had estimated that Rs100bn would come
from the survey-generated new tax sources in 12 months of the financial year 2000-01.
Internally, they said, the CBR set itself the target of Rs35bn from the survey-based net
expansion. These figures too, they said, have been revised downward. None of these amounts
are expected to be deposited by taxpayers in the first two quarters of the new financial
year, said CBR officials.
They explained that the CBR expects to collect Rs100bn on the basis of
data collected through the ongoing survey in the latter two quarters of the financial year
(Jan-June 2001), and not before that. In the first two quarters, the CBR would have to be
content with existing sources for meeting the quarterly targets of revenue collection.
PSO to import fuel oil
Pakistan State Oil on Thursday became the first oil firm to issue a
tender for fuel oil imports after the government announced it would deregulate the sector
from July 1, officials said.
The state-run company, the country's largest oil marketing firm with
more than 70 per cent market share for oil products, said it was seeking 240,000 tons of
high sulphur fuel oil for August delivery.
Previously fuel oil imports was done by the ministry of petroleum and
natural resources, 75 per cent of which was bought under term contracts with Saudi Arabia
and Kuwait with the rest purchased through quarterly spot tenders.
Industry sources said the move was part of government's policy to
deregulate the oil sector. It was subsidizing some freight costs to keep oil product
prices the same throughout the country.
The deregulation for fuel oil was announced in the budget for fiscal
2000/01 and finance minister Shaukat Aziz said last month that the government would allow
private fuel oil imports from July 1.
EU to liberalize textile imports
The European Union said on Wednesday that it will liberalize 18 per
cent of its textile and clothing imports as of Jan 1, 2002 but restrictions on key exports
from Pakistan and other developing nations will remain pending a reciprocal lowering of
The EU Commission said it was ready to remove quotas on 37 product
categories as part of a World Trade Organisation commitment to liberalize global textiles
trade by Jan 1, 2005.
Software export target
The country's software exports, currently standing at around $ 30
million per annum, are likely to increase by 300 per cent increase by the next two years,
sources at the Ministry of Commerce said on Tuesday.
"It can be realized with the creation of a network of software
technology parks throughout the country", the sources argued.
The sources informed that a software park was already in operation at
'Awami Markaz' building which has been turned into a software park with 15 local and
multinational companies working in this software park.
Action plan approved: SBP chief
Governor State Bank of Pakistan (SBP), Dr Ishrat Hussain has said the
federal cabinet, in principle, has approved the action plan to promote e-commerce.
Addressing the seminar on "e-commerce and electronic funds
transferinfrastructure for Pakistan" at HBL head office on Thursday, he said
promoting the e-commerce is a gigantic task but it can be achieved by collective efforts
to enter in the digital revolution.
"If we able to get 0.2 per cent of share total global e-commerce
business, it will make a foreign exchange impact of adding two billion dollars which
include increase in exports, capitalization and workers remittances," the SBP chief
150,000 tons urea export proposed
The Economic Coordination Committee (ECC) of the cabinet has been
requested to allow additional export of 150,000 metric tons of urea fertilizer.
The ECC is scheduled to meet on Friday with the finance minister
Shaukat Aziz in the chair.
Official sources told on Thursday that earlier, export of urea was
considered in the ECC meeting held on March 2, as no agenda item and it was decided that
100,000 tons could easily be spared for export.
Now the ministry of industries and production has informed the ECC that
its earlier decision to export 100,000 tons urea would not solve the problem of fertilizer
industry which is carrying a huge investment inventory.
Rice exporters said Tuesday that international prices were depressed
and they cannot compete without government support or incentive package.
Vice Chairman, Rice Exporters Association of Pakistan, Haroon Qasim
said the association had already sent a proposal to the government, seeking incentive for
the rice exporters to enable them to compete in the international market.
He said this proposal had been sent on the advice of federal government
which wanted to export remaining 200,000 tonnes this season.