DNA

ISLAMABAD: Pakistan is one of the top markets for the illicit tobacco trade in Asia, and the market share of these illegal manufacturers have increased from 35pc to 42pc in the last three years.

As per a survey conducted by Oxford Economics, in 2017, a total of 77.8 billion cigarette sticks was consumed in Pakistan, of which 11% cigarettes were illegally smuggled into the country, and 31% were locally manufactured tax-evading cigarettes.

The local tax-evading manufacturers use a unique way of evading taxes. In the big markets of the country, these manufactures do print the mandatory Graphical Health Warning (GHW) and the minimum regulated prices but are sold less than the printed price.

The minimum price regulated but the government is Rs62/pack but these local manufacturers sell at the price of Rs25-30/pack. They also under-declare their production to evade taxes.

On the other hand, recently, the Society for the Protection of the Rights of the Child (SPARC) held a survey in the Pakistani market and claimed that the presence of illegal cigarette in the country is the only 16pc.

According to the details shared by the official of SPARC, the survey was conducted in 10 most populated cities by Studying Tobacco Users of Pakistan (STUP) and evaluated over 8,000 packets of cigarettes to know how many cigarettes are being smuggled or illegally sold and STUP found that almost 16% of cigarettes are being sold illegally but these results are less than the claims of the tobacco industry.

The survey methodology that was used in this survey seems flawed as it only focuses on one element within illegal cigarettes i.e. smuggled cigarettes, which do not comply with the government’s GHW mandate).

The methodology does not take into account locally manufactured tax-evading cigarettes, because as per the survey methodology only those packets were considered which did not have the GHW and hence those with GHW were ignored.

Ignoring the local illegal cigarettes packs being sold leaves behind only the smuggled cigarettes what only hold the 11pc of the market share while the 31pc of the market share still belongs to the illegal local manufacturers. This is further validated by PM Imran Khan’s speech on multiple occasions where he has highlighted the market share and tax recovery from the industry.

ISLAMABAD, OCT 14 /DNA/ – Azzah Attique, Entrepreneur and tourism sector expert said that tourism has been badly hit given the ongoing challenges. All sub-sectors including hospitality, transport, entertainment, have been affected and require a customized response.

All sub-sectors need to be digitally integrated. Khyber Pakhtunkhwa has 35 million population and majority is youth – many have stakes in local tourism. Not giving attention to this sector could give rise to unemployment. The government is not investing in hospitality education and skills.

Covid-19 now provides re-skilling opportunities. Singapore is favouring stay-cations to revive the local hotel industry. We are bringing chefs from Pakistan to Singapore to introduce Pakistani food in Singapore. Need to teach our chefs international ways of working.

Mr. Bilal Farooq Khan, National Incubation Center, Peshawar said we have signed MOU with SECP which helps in registration of start-ups. However the process of physical registration is still there and this needs to be brought online.

The e-payment gateways are still not efficient. The start-ups do not qualify for government projects due to stringent eligibility requirements. Start-ups are in the process of pivoting but need help to become exporters of goods and services.

Our start-ups are struggling to get certifications for exports. For example in electro surgical device start ups – DRAP certificate is required by this start up since long. The government should undertake an assessment of what are the certification and registration needs of businesses to become exporters.

Mr. Fazal Amin Shah from Khyber Pakhtunkhwa Revenue Authority (KPRA) said we have never resorted to any harassment in enforcement of our measures. Our attitude is always very cooperative with tax payers. Our collection has increased by 65% in the last year.

No coercive measures were taken. This is result of only voluntary compliance. We are focusing to expand tax payer education. This has improved compliance of tax payers in the province. We are regularly looking to improve the tax policy aspects too. In Covid-19 times we have drastically reduced the sales tax rate.

Rates have even been reduced for the informal sector as well. Despite this we understand that some sub-sectors are still under stress e.g. we are not seeing growth in hospitality industry. Marriage halls have not seen their business open fully.

But IT sector and telecom has seen a boost in Covid times. Banks, insurance, and construction sector also show increased tax collection. New automation system for hospitality sector will be introduced to reduce tax compliance costs.

Enterprises who will install KPRA point of sale system will be facilitated further. KPRA wants motivated workforce and has allowed performance based incentives. These incentives are subject to independent assessments by third-party.

Ms. Misbah Faiz, Founder Khawateen Rozgar Services said that despite Covid-19 notices from tax authorities have not stopped rather increased. KPRA’s online system is still not tax payer friendly. The micro and small businesses have very less knowledge regarding fulfilling their tax liability – they need help to understand the online systems.

The grants announced by the government in March 2020 to help SMEs have still not been disbursed. The loan applicants who have large collateral are being favoured. Women-led enterprises need tailored support and special grants. Firms in Khyber Pakhtunkhwa are facing dearth of human resource. Firms have to bring labour from Punjab to scale up operations.

Ahad Nazir, Head, SDPI’s Center for Private Sector Engagement said the recovery from Covid-19 could take longer than expected. This implies that enterprises in the services sector will need policy and regulatory support of various kinds in the medium-term. The cities in the Khyber Pakhtunkhaw province rank low in the doing business rank which needs improvement to attract investment. A focus on development of newly merged districts is required.

Dr. Vaqar Ahmed, Joint Executive Director, SDPI while moderating the discussion said that the provincial governments have reduced tax rates for certain services sectors however it still remains to be seen if this has improved chances of enterprise survival in the short term. It is encouraging to see that tax departments are undertaking perception surveys to assess the difficulties faced by genuine tax payers. However more efficient online compliant registration and follow-up mechanisms are need of the hour. Many tax payers do not hear back from the tax departments regarding the complaint filed.

The government of Khyber Pakhtunkhwa should conduct a detailed assessment on why new exporting enterprises from the province are not emerging. Developing potential to export is important for integration of Khyber Pakhtunkhwa-based enterprises in global value chains.

Such a study should also highlight how firms in the province can benefit from national-level reform of customs duties, export exemptions schemes, e-commerce, and export development fund.  Many of the certification requirements faced by exporters have changed as a result of Covid-19 – an area where government support will be required.

LAHORE, OCT 14 (DNA) – State Bank of Pakistan (SBP) has announced Government of Pakistan’s markup subsidy for affordable housing finance for construction and purchase of new houses.

The statement released by the central bank said that government has allocated Rs33bn for payment of markup subsidy for financing over a period of 10 years and has assured continuity of facility. The markup subsidy facility will be available through all banks and is divided in 3 tiers.

Here’s all you need to know about the scheme: Eligibility criteria: All men/women holding CNIC: First time home owner; An individual can have subsidized house loan facility under this scheme only once; and Only for construction and first purchase of newly constructed affordable housing units.

Size of Housing Unit: Size of the loan is segregated into three tiers, as under: Tier 1 (T1) – Housing units/apartments of up to 125 square yards (upto 5 Marla) with covered area of up to 850 square feet; Tier 2 (T2) – Housing units/apartments of up to 125 square yards (5 Marla) with covered area of up to 850 square feet; and Tier 3 (T3) – Housing units of more than 125 square yards up to 250 square yards (10 Marla) or apartments with covered area from more than 850 square feet to 1,100 square feet.

Maximum Price of Housing Units: Maximum price (market value) of a single housing unit at the time of approval of financing, as under: Tier 1 (T1) – Rs 3.5 million; Tier 2 (T2) – Rs 3.5 million; and Tier 3 (T3) – Rs. 6.0 million

Maximum Loan size: Maximum size of the loan of a single housing unit, as under: Tier 1 (T1) – Rs 2.7 million; Tier 2 (T2) – Rs 3.0 million; and Tier 3 (T3) – Rs. 5.0 million. Loan type: Long term housing finance loans.

Security Requirements: As per banks’ credit policy and prudential regulations for housing finance, the housing unit financed will be mortgaged in favor of financing bank.

Allocation in Budget: Finance Division shall give authority to SBP to debit GOP account on quarterly basis for the subsidy payment to banks; and Payment will be made to the banks on submission of quarterly-consolidated subsidy statement as per format prescribed by the State Bank of Pakistan.

Pricing: Executing Agencies: All commercial banks including Islamic banks and House Building Finance Company Limited (HBFCL).

Application Form: A standardized Application Form both in English and Urdu will require minimum essential information with simple format; and The processing time will not exceed 30 days after submission of all documents by the borrower and the same will be clearly stated in the application form.

Standardized Procedures: Banks to have standardized loan documents and risk acceptance criteria.  Monitoring: SBP will publish consolidated information about the loans extended under this program for information of the public on quarterly basis on its website. = DNA

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DUBAI, OCT 14 (DNA) – Dubai based group Alif Investments, which is the leader in Shariah Investments and the Financial Services Industry, has decided to bring another established food chain to Pakistan.

The Dubai based Pakistani street food chain Emly Chilli has now opened its doors in Pakistan. The restaurant has chosen Karachi as the first of its many locations, which is the economic hub of the country. The outlet is strategically located on main Shahrah-e-Quaideen in PECHS, a densely populated area.

 The eatery offers a variety of Pakistani dishes which are commonly seen in the streets of Karachi, but will be served in a fashionable, clean/hygienic and family environment. The restaurant comes with 11 years of experience in the food industry with a well-reputed name in Dubai.

Over the years, the brand has built a phenomenal reputation by maintaining high quality and emphasizing on its core values of hygiene and taste. The food industry has and will remain to be a lucrative business in Pakistan, as people give it great significance and through it see a way to connect and strengthen a bond with one another.

“We’re excited to open Emly Chilli in Karachi,” said Asif Jabbar, Group CEO Alif Investments UAE. “We opened our first international location in Dubai 11 years ago, and it was time for us to bring the delicious flavors and unique menu offering that have made Emly Chilli a big name in indoor street food restaurant in Dubai to Pakistan.

“Emly Chilli is the perfect brand to bring to Pakistan, “Ahmed Mubashir Shaff, CEO, Alif Investments Pakistan.” Not only the food is made in a hygienic environment but we know for a fact that many Pakistanis have experienced Emly Chilli while travelling to Dubai. We are thrilled to open in other cities too.

The menu includes an extensive variety of rolls, pizzas, bunkababs, and barbeque platters for group dine-ins.

The group has seen great potential in the Pakistani market which is the reason why they have decided to venture here. With a successful launch in the city, in due course the group aims to expand further to other cities of the country. = DNA

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MUZAFFARABAD, OCT 14 (DNA) – Two Azad Kashmir ministers have been reported COVID-19 positive with spike in coronavirus cases in the region. Local administration has imposed smart lockdown at five places after resurgence of coronavirus cases.

Azad Jammu and Kashmir’s Minister for Law and Parliamentary Affairs Farooq Ahmed Tahir and college education minister Waqar Ahmed Noor have been reported COVID-19 positive. The government authorities have notified imposing smart lockdown at five areas in the region.

According to the government notification, smart lockdown has been clamped at Officers Colony Narol, Domel Taameer-e-Nau School street, Officers Colony Jalalabad, Rizwan School’s street and the street behind Saif Plaza.

Fourteen more people died from coronavirus-related complications in the country over the past 24 hours, taking the death toll from the disease to 6,601 

According to the National Command and Operation Centre (NCOC), 471 fresh infections surfaced when 28,022 samples were tested during this period, lifting the national tally of cases to 320,463.

Around 305,080 people have recovered from the disease so far across Pakistan with addition of 471 recoveries recorded over the previous 24 hours. There are a total of 8,782 active cases of Covid-19 in the country. Of the total patients under treatment, 518 are said to be in critical condition.

A total of 39,43,734 tests have been conducted so far. So far, Sindh has reported 140,756 cases, Punjab 101,014, Khyber Pakhtunkhwa 38,427, Balochistan 15,577, Islamabad 17,526, Azad Jammu and Kashmir 3,198, and Gilgit Baltistan 3,965.

On October 13, Federal Minister for Planning and Development Asad Umar had stressed that the implementation of precautionary measures is vital to ward off the possible second wave of the novel coronavirus.

Chairing a meeting of NCOC, he said the use of face masks is mandatory and enforcement of Standard Operating Procedures (SOPs) in educational institutions and banquet halls will be strictly monitored. = DNA

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ISLAMABAD, OCT 14 (DNA) – Ruling out any chances of reconciliation, Prime Minister Imran Khan has once again given a clear message to the opposition parties that whether they stage sit-ins or hold rallies, they will never be given an National Reconciliation Ordinance (NRO).

The Prime Minister said this while meeting Senators Faisal Javed and Zeeshan Khanzada. The meeting reviewed various initiatives for the revival of Pakistan’s film and drama industry, as well as producing feature films and dramas based on Islamic history nationally.

“No matter what opposition stages sit-ins or protests, I’ll never give NRO to anyone, PM Khan said. The Prime Minister also called for increasing positive and constructive activities for the youth and said that he wants them to participate in constructive activities as much as possible.

 He said that he would address the youth at the Tiger Force Convention this week. The country’s political situation and the opposition’s anti-government movement were also discussed during the meeting.

The Prime Minister said that he had predicted from day one that the corrupt will band together. He took a clear and unequivocal stand and reiterated his position that no matter what happens there will be no NRO for the opposition.

Hitting the opposition parties’ reunion, PM Khan said he has been saying from the very first day that the opposition is united only to save their corruption. On Friday, Prime Minister Imran Khan had said that all the opposition leaders have gathered at one platform to save their corruption.

Addressing the seminar of PTI Lawyers Forum in Islamabad, he had said that opposition parties have only one agenda to halt the process of accountability. “They do not believe in rule of law in the country.” = DNA

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