Controversial tax drives fuel dealers to strike

Controversial tax drives fuel dealers to strike

Controversial tax drives fuel dealers to strike

• Call for nationwide protest on July 5 comes after govt imposes 0.5pc advance turnover tax
• Govt ‘concedes’ mistake, gives assurance it will withdraw the tax soon
• Asks OMCs to ensure availability of sufficient stocks at company-run stations

ISLAMABAD: A divided house of the Pakistan Petro­leum Dealers Association (PPDA) on Tuesday annou­nced a countrywide strike for July 5 to protest the imposition of 0.5 per cent advance turnover tax in the budget, although the government has conceded its mistake and assured withdrawal of the controversial tax.

As a precautionary measure, however, the government on Tuesday directed oil marketing companies (OMCs) to ensure the availability of sufficient stocks of petroleum products at company-owned or company-operated and other sites associated with the OMCs to avoid any disruption of the supply chain and inconvenience to the general public and industry in case of strike.

On Tuesday, two separate PPDA delegations — one led by Abdul Sami Khan from Karachi and another coordinated by Hassan Shah from Lahore — met Federal Board of Revenue (FBR) Chairman Amjed Zubair Tiwana.

Mr Tiwana assured both the PPDA teams that inclusion of petroleum dealers or operators of petrol pumps in the category of retailers envisaging application of 0.5pc advance turnover tax was by mistake and would be withdrawn within the next two days.

An official said Mr Tiwana agreed that it was double taxation as the outlets were already paying advance fixed withholding tax at Rs1.4 per litre (about 12pc of dealer commission) as final income tax and had been subjected to advance turnover tax now because of definitional issue of “dealers and distributors”. He also took up the matter with the finance minister and explained the situation and how it should be corrected.

The FBR chief also assured the delegations that until the issue was resolved, the government would ensure that OMCs issue invoices without the application of 0.5pc turnover tax. Both delegat­ions, according to official sou­rces, reciprocated the goodwill and assured the government’s team that they would wait for Mr Tiwana’s word to materialise for two days.

Separately, Pet­r­o­leum Secretary Momin Agha met representatives of OMCs and clarified that the turnover tax had been imposed through the Finance Act 2024-25 passed by parliament and endorsed by the president of Pakistan. He noted that higher taxes app­lied to all, including the salaried class, and were not unique to petroleum dealers.

The petroleum ministry was advised that OMCs would not be able to keep their company-owned or operated sites stocked in major urban centres and rural areas, except Rawalpindi and Islamabad and a few areas in some other cities, in view of a limited number of such fuel stations, mostly belonging to state-run Pakistan State Oil (PSO) and Attock Petroleum.

The petroleum division directed the Oil and Gas Regulatory Authority (Ogra), and the heads of Oil Companies Advisory Council (OCAC), Oil Marketing Association of Pakistan (OMAP) and about 15 larger OMCs to not only keep their outlets sufficiently wet with backup supplies but also provide lists of such pumps that would remain operational.

Low margins, high inflation

Later, Abdul Sami Khan, the PPDA leader from Karachi, announced at a news conference that dealers across the country would go on strike on July 5 against the turnover tax, and pumps would be closed for business unless the government removed the tax.

He said the new turnover tax would strangle petroleum retailers as petrol pumps were already operating at very low and regulated margins and record inflation had made the retail business unviable.

He said he met the finance minister to brief him on the issue and the dealers were left with no option except to close their businesses because no business could operate at a loss. Mr Khan said that smuggling of petroleum products from Pakistan-Iran borders continued unabated but nobody was paying any heed to address the issue.

The PPDA’s Lahore-based group, which earlier distanced itself from its Karachi chapter, also supported the strike call. Hassan Shah confirmed that the FBR chief had assured them that the turnover tax would be removed, and it was now up to the government to find a way out.

He said the oil marketing companies had not yet issued tax-inclusive invoices in the first two days of the new fiscal year but had conveyed to retailers that unless abolished by law in eight to 10 days, they would have to immediately recover backlog for these days as well. If the tax was not abolished, the dealers would be left with no option but to close fuel stations, he said.

 PSX Highlights of the Day

ADVANCERSDECLINERS

Company	Price	Change	Change %	Volume
TRSM	3.0000	1.0000	50.00 ▲	384,033
FEM	3.5000	1.0000	40.00 ▲	439,654
GUSMDEF	3.6600	1.0000	37.59 ▲	103,758
PASMDEF	4.0000	1.0000	33.33 ▲	103,698
GSPMDEF	3.6800	0.8400	29.58 ▲	203,086

Fan frenzy as T20 World Cup winners India finally return home

Fan frenzy as T20 World Cup winners India finally return home

Fan frenzy as T20 World Cup winners India finally return home

 

India’s T20 World Cup winners returned home to a heroes’ welcome on Thursday with skipper Rohit Sharma and his players hailed by euphoric fans jostling to glimpse their stars.

Frenzied crowds shouted “India, India” after they landed in New Delhi from the Caribbean, having been delayed for days by Hurricane Beryl.

Whistles and wild cheers greeted the players as they walked out from the arrivals area with gold medals around their necks, some giving a thumbs-up to their fans.

“This is surreal, watching my team with the World Cup,” emotional fan Rohit Khanna told AFP. “I saw the 2011 triumph, but this is a moment I will never forget.”

Despite monsoon rain, crowds gathered outside New Delhi’s airport long before dawn, waiting for a glimpse of their idols, who had beaten South Africa on Saturday in a thrilling final in Barbados.

“It’s home,” India’s cricket board said on social media.

It was vice-captain Hardik Pandya who emerged first wearing a Caribbean hat, and the crowd erupted when captain Rohit came out carrying the glittering trophy, which he hoisted into the air.

Star batsman Virat Kohli, whose hometown is Delhi, was given some of the loudest cheers as he waved to hundreds of fans.

“It’s a dream for me to witness India return home from a World Cup,” said a shirtless fan with a Kohli tattoo emblazoned on his chest.

The team are due to meet Prime Minister Narendra Modi later on Thursday, before flying to Mumbai for a victory parade in the heart of India’s financial capital later in the day.

Last weekend’s win ended an 11-year global cricket trophy drought for India following their 2013 Champions Trophy win.

Their last World Cup victory was at home in the 2011 50-over edition under the captaincy of Mahendra Singh Dhoni.

One fan held up a poster of coach Rahul Dravid. “Thank you, Mr Dependable”, it read.

Rohit, Kohli and allrounder Ravindra Jadeja all announced their retirement from T20 international cricket after the final.

Plane tracking website, Flightradar24, said the special Air India charter had been the “most tracked flight for much of the last 15 hours”, as excited fans followed their team

Loan inflows remain $11.7bn in July-May, far below target

Loan inflows remain $11.7bn in July-May, far below target

Loan inflows remain $11.7bn in July-May, far below target

 ISLAMABAD: Pakistan received only about $11.7 billion in foreign loans and grants in the first 11 months (July-May) of outgoing FY24, far behind the annual target of $17.4bn. This is amid major slippages in raising international financial support, although it has met the revised target.

According to official data released by the Ministry of Economic Affairs (MEA), the country received about $403 million in foreign assistance in May, up from $237m in April.

It said the government could materialise about $7.547bn in foreign economic assistance (FEA) in the first 11 months of the current fiscal year, almost 44 per cent of the annual budget target, amid limited borrowing avenues. This is in the wake of poor credit ratings and adverse conditions in the global financial markets despite the support of the International Monetary Fund (IMF).

This FEA is in addition to $3bn released by the IMF under the Stand-By Arrangement (SBA) and $1bn by the United Arab Emirates, which is separately accounted for by the State Bank of Pakistan (SBP). Thus, total foreign inflows, including the IMF and UAE, amounted to $11.7bn in 11 months. This generally works out to be almost 67pc of the full-year targeted inflows.

However, the authorities claim that better debt and trade management have reduced the current year’s foreign assistance requirements. Thus, its target for FEA is now tentatively revised to around $11bn instead of the $17.62bn set in the 2023-24 budget based on a lower current account deficit than budget estimates.

In its monthly FEA report for May, released with a rare fortnight-long delay, the MEA said the country received $7.747bn in the first 11 months (July-May) of outgoing FY24 against its annual target of $17.62bn. This meant foreign inflows were over 12.4pc lower than the $8.613bn of the same period last fiscal year, which was otherwise a very tough period given the challenging relationship with the IMF.

The low inflows were mainly because of the adverse international environment and the country’s poor credit rating, making international capital markets a no-go area for Pakistan. Therefore, Pakistan had to defer its plan $1.5bn Eurobond because of higher interest rates in the international capital markets and the country’s low credit rating. The EAD report showed that besides the $1.5bn in fresh bonds, the government had also budgeted another $4.5bn in foreign commercial loans for the current fiscal year that did not materialise.

In December 2023, the country secured three larger disbursements for $1.36bn from three major multilaterals — $638 million by the World Bank, $469 million by the Asian Development Bank and $255m by the Asian Infrastructure Investment Bank (AIIB). Major FEA in 11MFY24 flowed in at $2.89bn in July 2023, soon after Pakistan reached an agreement with the IMF for a fresh short-term programme, and then $1.343bn in April when the IMF released its $1.1bn final tranche on April 29.

For FY24, the EAD budgeted $2.4bn from the IMF, which later committed and disbursed $3bn after signing a 9-month SBA that expired in April.

The bulk — $2.66bn — of foreign loans reported by the EAD in 11MFY24 came from Saudi Arabia as a time deposit and oil facility, followed by $1.714bn from the World Bank, $766m from ADB, and a $508m guaranteed loan to Pakistan Air Force (PAF) by China National Aero-Technology Import & Export Corporation (CATIC). Total inflows from multilaterals, excluding the IMF, stood at $3.135bn in 11MFY24, compared to $4.45bn in the same period last year.

Inflows from all bilateral lenders, excluding Saudi Arabia’s $2bn time deposit, stood at $889m in 11 months. Another $1.015bn flowed in from overseas Pakistanis in Naya Pakistan Certificates (NPCs).

The government had estimated about $17.62bn in foreign assistance in the budget for FY24, including $17.385bn in loans and the remaining $235m in grants. As such, total loan disbursements in 11MFY24 stood at $7.4bn and $144m in grants.

The EAD said that out of $7.55bn, the bulk of $4.98bn was received for budgetary support or programme loans and about $2.566bn as project aid.

During the preceding fiscal year (FY23), the government had budgeted $22.8bn in foreign assistance but could materialise only $10.8bn throughout the year — about 46pc of the target — because of the suspension of the IMF programme. This left a $11.8bn slippage, resulting in the depletion of foreign exchange reserves.

Unlike previous years, Pakistan could tap only three major sources of foreign inflows during the preceding fiscal year, and the trend continued until 11MFY24.

Published in daily education July 4th, 2024

WASHINGTON: Joe Biden is “absolutely not” pulling out of the White House race, his spokeswoman said on Wednesday, as pressure mounted on the veteran Democrat following his disastrous debate performance against Donald Trump.

WASHINGTON: Joe Biden is “absolutely not” pulling out of the White House race, his spokeswoman said on Wednesday, as pressure mounted on the veteran Democrat following his disastrous debate performance against Donald Trump.

WASHINGTON: Joe Biden is “absolutely not” pulling out of the White House race, his spokeswoman said on Wednesday, as pressure mounted on the veteran Democrat following his disastrous debate performance against Donald Trump.

 The 81-year-old Biden has told a key ally he must convince the public quickly that he can do the job, the New York Times and CNN reported, raising the stakes for Biden’s first post-debate TV interview, scheduled for Friday.

“He knows if he has two more events like that, we’re in a different place,” the ally said, discussing the president’s poor showing against his Republican predecessor last week, according to the Times.

The White House quickly rejected the reporting as false. But Democratic establishment figures have voiced bafflement over what they see as deflection and excuses from the president and his aides after his often incoherent debate performance.

Biden is “absolutely not” withdrawing from the race, White House press secretary Karine Jean-Pierre told reporters on Wednes­day.

Meanwhile, Rep Raul Grijalva became the second Democrat in Congress to call on President Biden to withdraw from the race for the White House, on Wednesday. Earlier, Rep Lloyd Doggett became the first congressional Democrat to call on President Biden to step down, on Tuesday. Neither Grijalva’s office nor Biden’s campaign immediately returned requests for comment.

Published in Daily Education, July 4th, 2024

Bridgerton star Nicola Coughlan raises US $2m for Palestine

Bridgerton star Nicola Coughlan raises US $2m for Palestine

Bridgerton star Nicola Coughlan raises US $2m for Palestine

 

rish actor Nicola Coughlan, known for her role as Penelope Featherington in the hit Netflix series Bridgerton, has successfully raised US $2 million for the Palestine Children’s Relief Fund (PCRF) through her social media efforts.

The PCRF expressed its gratitude to Coughlan on X, formerly known as Twitter: “Thank you to actress and ‘Bridgerton’ star Nicola Coughlan for your incredible support of PCRF and your fundraising efforts which totaled an astonishing $2M USD in support of our Urgent Gaza Relief and Recovery efforts. Thank you for using your voice to inspire support for peace and impacting the lives of thousands of displaced children and families in dire need, providing them with humanitarian aid and medical relief.

The PCRF stats reveal that Coughlan’s fundraiser has received donations from the actor herself. The organisation says that through the support of people around the world, it provides food, water, clothing, medical care, and other essential aid to children in the Middle East.

Coughlan’s efforts have not only raised substantial funds but also increased awareness about the situation in Palestine, particularly during her promotional activities for Bridgerton.

She has consistently worn the Artists for Ceasefire pin during photoshoots and events, a symbol of her commitment to peace and justice.

In an earlier interview with USA Today, Coughlan had explained her motivation: “I’m doing my dream job and I’m getting to travel the world, but then I’m hyper-aware of what’s happening in Rafah at the moment.”

Coughlan said her father was part of the UN’s Truce Supervision Organisation, a peacekeeping force in the Middle East. Her family also lived in Jerusalem in the late 70s, deepening her connection to the region.

Speaking to Teen Vogue in April, Coughlan expressed her sense of moral responsibility: “I think if I can hopefully raise funds for aid organizations, it would be a wonderful thing to do.”

Coughlan’s feat demonstrates the significant impact celebrities can have in advocating for global causes. Her dedication to supporting Palestinian children and families highlights the importance of using one’s platform for the greater good, inspiring others to contribute to humanitarian efforts around the world.

5 world-changing ideas: our top picks for World Creativity and Innovation Day

5 world-changing ideas: our top picks for World Creativity and Innovation Day

5 world-changing ideas: our top picks for World Creativity and Innovation Day

 

A low-cost, tiny home that provides everything you need. A boat made of recycled plastic and flip-flops. Vaccine-delivery drones… As the planet marks World Creativity and Innovation Day on Sunday, we’ve selected our favorite ideas to light up the way to a better future for all, across several sectors.

1. Small and sustainable: 'Tiny houses' could be solution to world’s housing problems

They’re small, self-sustaining – and they could revolutionize the way we think about housing around the world, as building materials become scarcer.

Measuring just about 22-square-meters, or some 200-square-feet, a “tiny house” comprised of one room with a loft or pull-out bed, hidden storage, a kitchen and a bathroom, was presented last September to get people thinking about decent, affordable housing that limits the overuse of natural resources and helps the battle against destructive climate change.

The design was created by the UN environment agency and the Center for Ecosystems in Architecture at Yale University in the United States, in collaboration with UN-Habitat.

>> Find out more about these potential solutions to the world’s housing problems.

 

2. Boat made of recycled plastic and flip-flops inspires fight for cleaner seas along African coast

After completing a historic 500 km journey from the Kenyan island of Lamu to the Tanzanian island of Zanzibar, the world’s first ever traditional “dhow” sailing boat made entirely from recycled plastic, known as the Flipflopi, was created to raise awareness of the need to overcome one of the world’s biggest environmental challenges: plastic pollution.

The Flipflopi Project was 

>> Read more about the boat’s inspiring journey.

 co-founded by Kenyan tour operator Ben Morison in 2016, and the ground-breaking dhow was built by master craftsman Ali Skanda, and a team of volunteers, using 10 tonnes of recycled plastic.

The boat gets its name from the 30,000 recycled flip-flops used to decorate its multi-coloured hull.

3.Polyester made from recycled bottles, wardrobe recycling…: solutions to make the fashion industry more sustainable

It takes around 7,500 litres of water to make a single pair of jeans,  equivalent to the amount of water the average person drinks over a period of seven years. That’s just one of the many startling facts to emerge from recent environmental research, which show that the cost of staying fashionable is a lot more than just the price tag.

Despite the grim statistics, producers and consumers of fashion are increasingly waking up to the idea that the industry needs to change. A number of companies, including large volume retailers, are integrating sustainability principles into their business strategies. Examples include the global clothing chain H&M, which has a garment collection scheme; jeans manufacturer Guess, which is involved in a wardrobe recycling programme; and outdoor clothing company Patagonia, which produces jackets using polyester from recycled bottles.

>> Learn more about the UN’s drive and efforts to clean up the fashion industry.  

 

4. One small flight for a drone, one ‘big leap’ for global health

On a small island in the remote South Pacific, a one-month-old baby was the world’s first child to be given a vaccine delivered by a drone.

The state-of-the-art craft which transported the vaccine, travelled nearly 40 kilometres over rugged mountain terrain, flying from Dillon’s Bay in western Vanuatu to remote Cook’s Bay – a scattered community accessible only on foot or by small boats – where 13 children and 5 pregnant women were inoculated by a nurse.

Henrietta H. Fore, the Executive Director of UNICEF said the tiny aircraft’s flight “is a big leap for global health."

"With the world still struggling to immunize the hardest-to-reach children, drone technologies can be a game changer for bridging that last mile to reach every child,” she explained.

>> Find out more about why this could have tremendous impact.  

 

5. UN space-based tool opens new horizons to track land-use on Earth’s surface

Satellite-based tracking to chart how land is being used on the Earth’s surface got much easier and more accessible, according to the UN Food and Agriculture Organisation (FAO), thanks to the launch of a new online portal, developed in collaboration with the United States Space Agency, NASA.

The system – known as Collect Earth Online – is web-based, free of charge, and open to all platforms. It allows users to “systematically inspect” any location on the planet, from glaciers to rainforests, with satellite data.

“This innovation allows the collection of up-to-date data about our environment and its changes in a more efficient and participatory manner, using the local experts that know the landscape and the underlying ecology”, explained Mette Wilki, the head of Policy and Resources at FAO’s Forestry Division.

>> Find out what this means for the planet.