Zero-rated status for all exports maintained: Hafeez

KARACHI: The government, following hue and cry from the industrial and trading sectors, has decided to maintain zero-rated status for all the five sectors � textile, leather, surgical, sport goods and carpet.

Federal Finance Minister Dr Hafeez Shaikh during a meeting with the business community assured them that this policy would be maintained for at least three years.

It was further decided to have two rates for tax, like, 6.0 percent on selling of yarn and 4.0 percent on any type of value-addition, which would be charged only from unregistered persons on the basis of value of their supply.

Issues pertaining to withholding tax were also resolved by reducing it from 3.5 percent to 1.0 percent on goods and services while federal excise duty will remain zero.

The 17 percent sales tax has been reduced to 4.0 percent on buying of finished and semi-finished products.

With regards to parameters for audit a committee would be formed, for which SRO 509 (I)/ 2007 has been restored.

The finance minister promised to solve all the problems up to the satisfaction of the textile sector.

Hafeez said the International Monetary Fund�s (IMF) conditions had made it imperative to impose taxes across-the-board on all sectors of the economy.

The businessmen expressed their contentions regarding problems due Afghan Transit Trade and multiplicity of taxes, which had seriously affected the backbone of the economy, especially the textile sector.

Dr Hafeez agreed that tax mechanism should be in such a way that the local textile products remain competitive against the smuggled goods under ATT.

He expressed his concern on the inflationary impact of taxes on the poor masses.

He appreciated the uniqueness of the textile sector, which was responsible for 60 percent of exports and 42 percent of the urban employment.

The finance minister understood the problems being faced by the textile sector due to the ATT and that any mode of front loading in form of sales tax on textile sector should result in lowering the costs of smuggled goods making them more viable.

The stakeholders were satisfied at the win-win situation as well as the textile sector expressed their profound gratitude to the finance minister and the government.

Federal Board of Revenue (FBR) Chairman Salman Siddique, former FBR chairman Abdullah Yousuf, FBR Revenue Division Additional Secretary Asrar Raouf and members of the revenue council were present.

Pakistan Apparel Forum Chairman Jawed Bilwani, former KCCI vice president Haroon Agar, Pakistan Chemicals and Dyes Merchants Association Chairman Maqsood Butt, APTMA Chairman Usman from Pakistan Yarn Merchant Association and Bashir Ali Muhammad from Gul Ahmed Textiles along with other stakeholders from all over Pakistan attended the meeting.

SL invites N. Zealand PM for semi-finals

COLOMBO: Sri Lanka's President Mahinda Rajapakse on Sunday invited New Zealand Prime Minister John Key to witness the cricket World Cup semi-finals between the two nations on Tuesday, an official said.

Rajapakse asked Key to visit the island after the home team crushed England by 10 wickets on Saturday to reach the World Cup semi-finals that will be played at Colombo's Premadasa Stadium, spokesman Bandula Jayasekera said.

The 1996 champions will tackle New Zealand on Tuesday for a place in the finals. The Black Caps had knocked South Africa out of the World Cup by defeating them by 49 runs on Friday.

Sri Lanka will meet New Zealand for a second time in the current World Cup after their 112 run victory over the Black Caps in their Group A match at the Wankhede Stadium on March 18.

Wi-Fi cars hitting the information superhighway

WASHINGTON: More cars are hitting the information superhighway thanks to new automotive Wi-Fi technology that allows vehicles to become rolling “hot spots.” Analysts say consumers are warming to the notion of more connectivity in their cars, with “apps” for information and entertainment just as they have with their smartphones or tablet computers.

“Initially, putting Internet access in the car sounds like a distraction and frivolous but as time passes it will become a part of our lives and we will feel uncomfortable not having access,” said Jeff Kagan, an independent telecoms analyst.

“I think this is going to grow into a vibrant sector.” Market research firm iSuppli said it expects a surge in worldwide shipments of car Wi-Fi systems to 7.2 million units by 2017, from just 174,000 in 2010.

Wi-Fi has been around for several years as an aftermarket accessory but many major manufacturers now offer some form of Wi-Fi or are developing it.

Ford has been offering Wi-Fi in selected models since 2010 and some form of Internet access is also offered by many other major automakers including General Motors, BMW, Audi, Saab and Chrysler.

In mid-March, Finnish telecom giant Nokia announced the launch of a Car Connectivity Consortium of 11 companies with common technical standards, including vehicle manufacturers Daimler, General Motors, Honda, Hyundai, Toyota, and Volkswagen.

Autonet Mobile, a California-based firm that touts itself as the “first Internet-based telematics and applications service platform” for the auto market, has over 10,000 US customers using its CarFi service at $29 a month, said chief executive Sterling Pratz.

The group recently signed agreements with General Motors and Subaru.

Pratz told AFP that consumers are looking for better entertainment options for passengers in their vehicles and use Wi-Fi for videos, gaming and social networking.

“They feel there is a better way to stay entertained in the car compared with the DVD player. They lead a connected lifestyle and when they get in the car they feel disconnected,” he said.

A next step, Pratz said, is other types of applications that can allow parents to monitor speeds of their teen drivers and to find their car if it is stolen.

Autonet, which started in 2005 and has funding from venture capital firms, only operates in the US market but Pratz says he plans talks with European carmakers and is considering Asia as well.

In Europe, Audi is using a system from Marvell Technology and Harman Automotive to create a factory-installed mobile hotspot, allowing up to eight devices to be connected.

“I believe today’s consumers want the convenience of seamless connectivity and live content whenever and wherever they choose – whether in the home, office, classroom or automobile,” said Weili Dai, Marvell’s co-founder and vice president in announcing the system.

“Finally, the car is connected to the rest of our lives.” Saab meanwhile has announced its own system based on Google’s Android operating system, dubbed IQon, touted as “a completely new car infotainment user experience.” The Swedish automaker will allow third-party developers to develop “apps” by accessing 500 signals from different sensors in the vehicle.

“With Saab IQon, there are no limits to the potential for innovation,” said Saab’s Johan Formgren. “We will be inviting the global Android developer community to use their imagination and ingenuity.”Analysts say the market is likely to grow as more applications become available — for entertainment, navigation or even for diagnostics of the automobile.

Yet a key question for developers of the technology is whether to offer Wi-Fi as a separate data system or allow consumers to bring their own.

Ford’s Wi-Fi system called MyFord Touch, which is added to its SYNC connectivity for mobile phones and music players, offers no separate data plan but instead allows consumers to plug in their own devices – smartphones, tablet computers or wireless cards.

This not only allows consumers to avoid a new data fee but enables easier adaption of a rapidly changing market for wireless devices, said Ford spokesman Alan Hall.

“We created the ability for a customer to bring in their 3G and 4G devices, and the car can take that signal and turn it into a Wi-Fi signal for four or five passengers in the car,” Hall told AFP.

Ford expects to have this Wi-Fi system on 80 per cent of its cars sold in North America within four years, Hall said, and is also launching the system globally next year.

Doug Newcomb of the auto research firm Edmunds.com said the Ford strategy appears to make more sense rather than asking customers to pay an additional monthly data subscription.

“Several years ago before smartphones and the iPad, (a separate Wi-Fi system) might have made more sense,” Newcomb said.