16 October 2022
Pro forma for Rental Income Declaration
The Federal Board of Revenue (FBR) has notified a standard pro forma in tax returns for rental income on movable and immovable properties of Pakistanis in foreign countries. Notified through SRO1891 of 2022, the pro forma allow people to declare their rental income in a proper description. The federal government in the Budget 2022, introduced Capital Value Tax (CVT) at the rate of 1% on the value of Pakistanis` movable and immovable properties outside Pakistan.
All sums of capital value tax collected under section 8 of the Finance Act 2022 will be paid by remittance into the government treasury or in the authorised branches of the SBP or the National Bank of Pakistan. The tax will apply to properties valued over Rs100 million. The value will be determined against the exchange rate on June 30. While the FBR has already notified CVT Rules 2022 for implementation.
Questioning FWO’ Role in Housing Works
The Auditor General of Pakistan (AGP) has objected to an award of a housing project worth Rs14.7 billion by the Capital Development Authority (CDA) to the Frontier Works Organisation in violation of the Public Procurement Regulatory Authority (PPRA) rules. According to the CDA audit report for the year 2021-22, the civic body flouted the rules in the award of the project and awarded it to the FWO even though the latter had no experience in housing projects. While in a related development, a contractor of CDA lodged a complaint with the Islamabad High Court against the high-ups of the civic agency for awarding projects without inviting tenders, even for mega projects.
The audit report stated that a Memorandum of Understanding between CDA, the Naya Pakistan Housing and Development Authority (NPHDA), and the FWO for the execution of the housing project on an Escalation Payment Certificate basis was signed on August 4, 2021. The Special Project Directorate of the CDA awarded the work on the EPC basis with an agreed amount of Rs13.4bn. The completion period was two years, it said, adding that CDA issued a revised acceptance letter and increased the EPC from 13.4bn to 14.7bn. The audit observed that the PC-1 of the project was “approved for an amount of Rs15.3bn by the CDA and the Development Working Party (DWP) wherein it was provided that the project would be executed” through the FWO. The CDA and DWP had no mandate to decide whether or not the project would be executed through the FWO, because the FWO did not possess any expertise in housing project.
Shahbaz Sharif will vice chairs the COP 27
The United Nations Climate Change Conference (COP27) announced this week that Prime Minister Shehbaz Sharif will be the vice-chairperson for the event. The development has come at a time when Pakistan is reeling from the devastation caused by unprecedented floods and torrential rains. The 27th session of the UN`s Climate Change Conference will be convened in Egypt`s city of Sharm elSheikh from November 6 to 18. It will be attended by world leaders, think tanks, heads of governments and international financial institutions to review the implementation on the objectives agreed in the past conference and chalk out an action plan for the future.
“COP27 will be a moment for countries to fulfil their pledges and commitments towards delivering the objectives of the Paris Agreement to enhance the implementation of the Convention. This year should witness the implementation of the Glasgow pact call to review ambition in NDCs, and create a work program for ambition on mitigation.” This year, the parties will focus on mitigation, adaptation, finance and collaboration to find sustainable solutions to climate change.
Ruda books FIRs against Farmers
The Ravi Urban Development Authority (Ruda) has got two cases registered against several farmers for allegedly threatening officials, ploughing its land `forcibly` and intervening in state affairs in the area of Ravi Riverfront Urban Development Project. The first information reports were lodged after the farmers offered resistance over possession of the land claimed to be acquired by Ruda under the land acquisition act. On the other hand, the farmers termed the Ruda`s claim of land acquisition baseless, saying they neither gave possession of their land to the authority nor received any compensation from the government.
Mian Mustafa Rasheed, the chief of the joint action committee of the Ravi project affectees, has said “The award of our land and its transfer to the governmentis totally fake, as it was done when the Lahore High Court had already granted stay order, scrapped the project and the final decision of the Supreme Court that allowed Ruda to only launch environment improvement-related activities at the land acquired already and the owners have received payment/compensation”.