Pkrevenue.com

Day: April 18, 2019

  • Forex exchange reserves fall to $16.19 billion on sovereign bond repayment

    Forex exchange reserves fall to $16.19 billion on sovereign bond repayment

    KARACHI: The foreign exchange reserves of the country fell by $1.03 billion during a week owing to huge repayment made against Pakistan Sovereign Bond.

    The total foreign exchange reserves of the country fell to $16.196 billon by week ended April 12, 2019 as against the reserves level of $17.228 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The central bank said that during the week ending April 12, 2019, SBP’s reserves decreased by US$1,028 million to US$9,243.7 million.

    The official reserves of the central bank were decreased due to payments on account of external debt servicing, including principal repayment of US$1,000 million against Pakistan Sovereign Bond.

    The reserves held by commercial banks were flat at $6.952 billion from previous week’s level of $6.956 billion.

  • Freezing bank account, raid only on discovery of evasion: KCCI

    Freezing bank account, raid only on discovery of evasion: KCCI

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has recommended that harsh measures of freezing bank account and raid should only be undertaken on discovery of massive tax evasion.

    A delegation of KCCI held discussions on Budget Proposals for Federal Budget 2019-2020 with Chairman Federal Board of Revenue (FBR) Jehanzaib Khan and his team at a meeting held at FBR House in Islamabad on Thursday.

    The KCCI team suggested that such harsh actions will only be taken in case of when evasion of very large amount is detected and only when concrete evidence is available rather than carrying out random raids on business entities.

    KCCI’s delegation, which was led by Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli, comprised of Vice Chairmen BMG Haroon Farooki and Anjum Nisar, General Secretary BMG AQ Khalil, President KCCI Junaid Esmail Makda and Former Senior Vice President Muhammad Ibrahim Kasumbi while Dr. Hamid Ateeq Sarwar Member (Inland Revenue Policy), Muhammad Javed Ghani Member (Customs Policy) and Chief of Income Tax, Chief of Sales Tax and Chief of Excise Duty and others were also present at the meeting.

    During the meeting, consensus was developed on various major issues and the FBR officials, while agreeing to most of KCCI’s budget proposals, assured to implement the same in the upcoming budget.

    The FBR Officials, while responding to KCCI’s proposal, agreed to rationalize the tax structure for import of raw materials by commercial importers and manufacturers.

    They also committed to review and curtail the discretionary powers vested to the officials of Inland Revenue which are a source of harassment and extortion of business and industrial community.

    KCCI delegation highlighted all major issues including issues pertaining to the Income Tax, Sales Tax and discretionary powers along with concessions & exemptions in various sectors of the economy which have resulted in the distortion of the tax regime.

    In his remarks, Chairman BMG & Former President KCCI Siraj Kassam Teli pointed out that the current tax regime, relevant laws and discretionary powers were being used to harass the business and industrial community and were hindering economic and industrial growth.

    “These laws have to be reformed in order to create a conducive environment for growth and liberalization of trade and also for the revival of economic activities”, he added.

    On the occasion, a comprehensive presentation was also given to the FBR team in which major taxation issues were highlighted and remedial steps were also given for ease of doing business and enhanced revenue generation.

  • Equity market ends higher in seesaw trade

    Equity market ends higher in seesaw trade

    KARACHI: The equity market gained 59 points on Thursday after witnessing seesaw trading during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,811 points as against 36,753 points showing an increase of 59 points.

    Analysts at Arif Habib Limited said that the market had an exciting session where the Index slipped in and out of green zone several times but ended the session in green.

    Besides after shock of TSA and regardless of SBP’s clarification on the matter, BOP’s price went down again and after initial trading in a narrow range, the price hit lower circuit and closed near that level.

    By the end of session, news of Finance Minister, Asad Umer again caused panic but market saw recovery after initial reaction.

    Banking sector ranked top in terms of volume with 62 million shares, followed by Vanaspati (54 million) and Cement (21 million).

    BOP ranked top consecutively on the volumes table with 53 million shares.

    Sectors contributing to the performance include Banks (+37 points), Power (+33 points), E&P (+28 points), Fertilizer (+26 points) Autos (+7 points), Cement (-47 points).

    Volumes increased from 173 million shares to 216 million shares. Average traded value also increased by 5 percent DoD to reach US$ 36.6 million as against US$ 34.8 million.

    Stocks that contributed significantly to the volumes include BOP, UNITYR1, UNITY, LOTCHEM and PAEL, which formed 60 percent of total volumes.

    Stocks that contributed positively include HBL (+39 points), FFC (+37 points), HUBC (+30 points), UBL (+28 points), and PPL (+25 points). Stocks that contributed negatively include BOP (-22 points), LUCK (-18 points), MCB (-12 points), DAWH (-10 points) and PSO (-10 points).

  • Rupee maintains level against dollar

    Rupee maintains level against dollar

    KARACHI: The Pak Rupee remained unchanged against dollar on Thursday amid lackluster trading activities.

    The rupee ended Rs141.40 to the dollar, the same previous day’s closing level, in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs141.39 and Rs141.40.

    The market recorded day high of Rs141.40 and low of Rs141.40 and closed at Rs141.40.

    The exchange rate in open market however ended with appreciation of the local unit.

    The buying and selling of dollar was recorded at Rs141.50/Rs142.00 as compared with previous day’s closing of Rs141.70/Rs142.20 in cash ready market.

  • Foreign Direct Investment falls by 51.4 percent in nine months

    Foreign Direct Investment falls by 51.4 percent in nine months

    KARACHI: The foreign direct investment (FDI) has declined by 51.4 percent to $1.27 billion during first nine months of current fiscal year as compared with $2.6 billion in the corresponding period of the last fiscal year, according to statistics issued by State Bank of Pakistan (SBP) on Thursday.

    The inflows of FDI fell by 20.9 percent to $2.51 billion during the period under review as compared with of $3.18 billion in the same period of the last fiscal year. While the outflows sharply increased by 121.8 percent to $1.24 billion as compared with $560 million.

    The portfolio investment in the stock market witnessed massive outflow during the first nine months of current fiscal year. The stock market witnessed outflow of $409 million during July – March 2018/2019 as compared with the outflow of $118.6 million in the corresponding period of the last fiscal year, showing sharp decline of 245 percent.

    The foreign private investment with both the component of FED and portfolio investment declined by 65.5 percent to $864 million during first nine months of current fiscal year as compared with $2.5 billion in the same period of the last fiscal year.

    The total foreign private investment after inclusion of foreign public investment witnessed decline of 82.4 percent to $873 million during July – March 2018/2019 as compared with $4.95 billion in the corresponding period of the last fiscal year.

  • Zubyr Soomro appointed as NBP board chairman

    Zubyr Soomro appointed as NBP board chairman

    KARACHI: Zubyr Soomro has been appointed as chairman of Board of Directors of National Bank of Pakistan (NBP), said a notice to Pakistan Stock Exchange (PSX) on Thursday.

    A day earlier the finance division notified appointment of chairman and directors on the board of NBP with immediate effect.

    According to the notice the following members have been appointed on the NBP board:

    01. Zubyr Soomro, chairman on vacant slot

    02. Mohammad Sohail Rajput AFS (IF/Inv), Finance Division, Director representing the government. He has replaced A Akbar Sharifzada, Ex-AFS, Finance Division

    03. Tawfiq Asghar Hussain, Director, who replaced Muhammad Imran Malik

    04. Ms. Sadaffe Abid, Director, who replaced Asad Munir

    05. Zafar Masud has been appointed as director on the vacant slot

    06. Imam Bakhsh Baloch has been appointed as director on the vacant slot

  • Sales Tax Act 1990: six years record required to be maintained

    Sales Tax Act 1990: six years record required to be maintained

    As per Section 24 of the Sales Tax Act, 1990, a person engaged in taxable supplies is mandated to preserve records and documents for a period of six years, effective from the end of the tax period to which such records or documents relate.

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  • FBR amends requirement of cash withdrawal information by banks

    FBR amends requirement of cash withdrawal information by banks

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued new instructions to banks regarding providing details of cash withdrawal by filers and non-filers.

    The FBR issued SRO 469(I)/2019 dated April 17, 2019 to amend SRO 1165(I)/2018 dated September 28, 2018. The amendment has been made regarding amount deducted on cash withdrawal from banks by filers and non-filers during a month.

    Through SRO 1165(I)/2018, the FBR changed the reporting criteria for banks under Income Tax Rules, 2001. Under the revised reporting criteria banks have been required to provide information of persons who have withdrawn cash exceeding Rs50,000 in a day and tax deductions thereon for filers and non-filers, aggregating to Rs 1 million or more during a month.

    The banks are required to provide information of cash withdrawal including name of person, CNIC, address, amount withdrawn during a month.

    However, through the latest SRO the FBR added a column of amount of tax deducted to the table of information.