Pkrevenue.com

Month: May 2019

  • Careem signs agreement to provide logistic solution to Unilever

    Careem signs agreement to provide logistic solution to Unilever

    KARACHI: Careem – the app based logistic service – has signed an agreement to provide solution to Unilever for its logistic business.

    A statement on Wednesday said that Careem and Unilever Pakistan have entered into a strategic partnership whereby Careem has agreed to provide an app based solution to Unilever for its logistics business.

    The digital solution provided by Careem will improve service levels and cost for Unilever by implementing new business models through innovative technologies.

    Key target areas the solution will focus on include the delivery of left over stock that can be transported through Careem, delivery of stock to remote locations, as well as urgent deliveries.

  • FBR sets up committee to address complaints in contract bidding

    FBR sets up committee to address complaints in contract bidding

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday constituted a grievances redressal committee to resolve the complaints of bidders pertaining to contracts of the revenue body.

    In an office order issued by the FBR stated that in accordance with rule 48(1) of the Public Procurement Rules, 2004, it had constituted the grievances redressal committee comprising the following officers of the FBR with immediate effect:

    01. Ali Raza, PD(ITTMS)/Procurement specialist: chairman

    02. Ardsher Saleem Tariq Chief Broadening of Tax Base: Member

    03. Amir Javed, Secretary (Management-IR): Member

    04. Tariq Mehmood, Second Secretary (Admin): Member

    05. Shiraz Ali, Second Secretary (SSM): Member.

    The committee will have full powers to address the complaints of bidders pertaining to procurement / contracts in FBR (Headquarter) before entry into force of the procurement contracts in question.

  • FBR field offices show resentment on appointment of chairman from private sector

    FBR field offices show resentment on appointment of chairman from private sector

    KARACHI: A massive resentment has been shown by the employees of Federal Board of Revenue (FBR) on nomination of a chartered accountant for top post of the revenue body.

    The working at the FBR is at standstill following the nomination of Shabbar Zaidi as FBR chairman by the Prime Minister two days back.

    The officers of the FBR are arguing that till today Shabbar Zaidi was helping his clients to avoid taxes if not evade taxes through aggressive tax planning.

    “If he is appointed as chairman of the FBR then he will lead tax teams in the field to conduct audit of taxpayers including his clients to detect mis-declarations / under-declarations, tax avoidance and tax evasion,” a FBR official said.

    There is no legal bar except that his appointment may be against the doctrine of conflict of interest, the official said.

    There is no moral justication for employees of FBR to raise objection on his appointment as Section 3(3) of FBR Act, 2007 empowers the federal government to appoint any person as Chairman FBR on such terms and conditions as it may determine.

    The official said that the only point on the basis of which Shabbar Zaidi’s appointment can be challenged by FBR employees is that the appointment may be in violation of doctrine of conflict of interest, which can only be decided by a court of law.

    Shabbar Zaidi has been the Managing Partner of Fergusson in Pakistan and hundreds of companies audit have been conducted and completed under his supervision, advice, guidance and signature.

    Those audited books of accounts up to previous five years would now be presented before his subordinate officers in the FBR and in the field formations.

    What would happen if an issue of his client is brought before him under section 7 of FBR Act 2007 for settlement where in he himself or even his former Chartered accountant firm has completed audit, the official questioned.

    Conflict of interest would still be there even if he assigns the case to any member of FBR for decision because he would be head of the office.

    Other serious issue in his case would be that he can not be Secretary Revenue Division so the government has to have separate Secretary Revenue Division from the bureaucratic hierarchy most probably from PAS.

    So working conditions may not be good for Shabbar due to probable resistance though he is highly competent and an extraordinary individual of strategic thinking and also very fair, honest and judicious.

    The other technical hitch is that if Chairman FBR has to be brought from private sector then it has to be through open competition by giving advertisement in the press as ruled by the Superior Courts.

    Another officer said that the appointment of FBR officials was made through Federal Public Service Commission (FPSC) in a transparent manner.

    “An officer spends his entire life with hope that in reward to his judicious work he would become chairman,” the officer said, adding that the precedent set by the government would demoralize the FBR officials.

  • PSX issues list of 25 top performing companies

    PSX issues list of 25 top performing companies

    KARACHI: Pakistan Stock Exchange (PSX) on Wednesday issued the list of 25 top performing companies for the year 2017.

    Every year, the Exchange acknowledges the performance of the top companies shortlisted on the basis of comprehensive criteria, which includes (i) Capital Efficiency, (ii) Profitability, (iii) Free-Float of Shares, (iv) Transparency, (v) Corporate Governance & Investors Relation and (vi) Compliance with Listing of Companies & Securities Regulations.

    The awards given by the Exchange to the top companies recognises their excellent financial and managerial performance, thereby providing them inter-alia a powerful marketing tool.

    Pakistan Stock Exchange is pleased to announce the names of the top 25 companies for the year 2017 that have been selected on the basis of the highest score obtained as per the Criteria for Selection of Top Companies mentioned earlier:

    Name of Company
    1. Fauji Fertilizer Company Limited.
    2. Unilever Pakistan Foods Limited.
    3. Lucky Cement Limited.
    4. Nestle Pakistan Limited.
    5. Golden Arrow Selected Stocks Fund Limited.
    6. Arif Habib Limited.
    7. Archroma Pakistan Limited.
    8. International Industries Limited.
    9. International Steels Limited.
    10. Engro Fertilizers Limited.
    11. Sui Northern Gas Pipelines Limited.
    12. Habib Bank Limited.
    13. Colgate – Palmolive (Pakistan) Limited.
    14. Atlas Honda Limited.
    15. Kohinoor Energy Limited.
    16. Mari Petroleum Company Limited.
    17. The Hub Power Company Limited.
    18. Millat Tractors Limited.
    19. Shifa International Hospitals Limited.
    20. Al-Ghazi Tractors Limited.
    21. United Bank Limited.
    22. Meezan Bank Limited.
    23. Atlas Battery Limited.
    24. Murree Brewery Company Limited.
    25. Bank AL Habib Limited.

  • Rupee makes significant gains against dollar

    Rupee makes significant gains against dollar

    KARACHI: The rupee made significant gain of 17 paisas against dollar on Wednesday after sufficient inflows of remittances and export receipts.

    The rupee ended 141.12 to the dollar from Monday’s closing of Rs141.29 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs141.28 and Rs141.35.

    The market recorded day high of Rs141.30 and low of Rs141.10 and closed at Rs141.12.

    Currency expert said that the sufficient inflows in shape of remittances and export receipts helped the rupee to gain value.

    The exchange rate in the open market was remained unchanged.

    The buying and selling of dollar was recorded at Rs141.20/141.70 same previous day’s level in cash ready market.

  • Equity market plunges by 596 points on expected tough budgetary measures

    Equity market plunges by 596 points on expected tough budgetary measures

    KARACHI: The equity market plunged by 596 points on Wednesday owing to concerns over interest rate rise and tough measures in the budget.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 35,035 points as against 35,631 points showing a decline of 596 points.

    Analysts at Arif Habib Limited said that KSE-100 index had a major draw down of 781 points that was caused by across the board selling.

    Market started on a positive note with 35 points but the selling pressure that was witnessed in the past couple of sessions started reflecting soon.

    Power, E&P, Cement, Steel, Banks and Chemical sectors contributed mainly to the volumes and also to decline. KEL declined significantly in the early session but started recovering by day end.

    Overall, KEL registered a volume of 16.7M shares followed by SNGP (5.7M) and MLCF (5.2M). Investors seem to have concerned about the repercussions of IMF conditionalities, as well as a host of issues from rising interest rates to an impending tough budget.

    Sectors contributing to the performance include Fertilizer (-133 points), E&P (-105 points), Banks (-55 points), O&GMCs (-51 points), Power (-41 points).

    Volumes increased significantly from 65.4mn shares to 113.2mn shares (+73 percent DoD). Average traded value also increased by 67 percent to reach US$ 32.3mn as against US$ 19.4mn.

    Stocks that contributed significantly to the volumes include KEL, SNGP, MMLCF, PIBTL and WTL, which formed 32 percent of total volumes.

    Stocks that contributed positively include COLG (+13 points), UBL (+10 points), BAFL (+3 points) SHEL (+3 points) and ARPL (+2 points). Stocks that contributed negatively include MCB (-51 points), ENGRO (-36 points), FFC (-34 points), PPL (-32 points) and MARI (-28 points).

  • Withholding tax rates on electricity consumption for tax year 2019

    Withholding tax rates on electricity consumption for tax year 2019

    KARACHI: The electricity supply company shall collect advance tax from industrial and commercial consumer as per updated withholding tax card for tax year 2019 issued after amendments made to Income Tax Ordinance, 2001 through Finance Supplementary (Second Amendment) Act, 2019.

    Federal Board of Revenue (FBR) issued following withholding tax rates under Section 235 of Income Tax Ordinance, 2001 to be collected by person preparing electricity bills from commercial and industrial consumers of electricity along with payment of electricity consumption charges:

    Does not exceed Rs. 400: Zero tax

    Exceeds Rs400 but does not exceed Rs600: Rs80

    Exceeds Rs600 but does not exceed Rs800: Rs100

    Exceeds Rs800 but does not exceed Rs1000: Rs160

    Exceeds Rs1000 but does not exceed Rs1500: Rs300

    Exceeds Rs1500 but does not exceed Rs3000: Rs350

    Exceeds Rs3000 but does not exceed Rs4500: Rs450

    Exceeds Rs4500 but does not exceed Rs6000: Rs500

    Exceeds Rs6000 but does not exceed Rs10000: Rs650

    Exceeds Rs10000 but does not exceed Rs15000: Rs1000

    Exceeds Rs15000 but does not exceed Rs20000: Rs1500

    Exceeds Rs20000: (i) At the rate of 12 percent for commercial consumers; (ii) at the rate of 5 percent for industrial consumers.

    The tax shall be:

    (i) Adjustable In case of company.

    (ii) in case of other than company tax collected on Rs, 360000 amount of annual bill will be minimum tax.

    (iii) in case other than company tax collected on amount over and above Rs 30000/- of monthly bill will be adjustable.

    (iv) Final for CNG Stations.

    The withholding tax on domestic consumers of electricity under Section 235A shall be:

    (i) If the amount of monthly bill is Rs75,000 or more: 7.5 percent

    (ii) If the amount of monthly bill is less than Rs75,000: the tax rate shall be zero.

    The withholding tax from every steel melters and composite steel units under Section 235B shall be Re 1 per unit of electricity consumed and the tax shall be non-adjustable.

  • Sales Tax Act 1990: tax payment by company in liquidation

    Sales Tax Act 1990: tax payment by company in liquidation

    KARACHI: The sales tax law has defined the procedure for liability for payment of tax in case of private company is in state of liquidation.

    The updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 58 explained the payment method from the company is wound up.

    Section 58: Liability for payment of tax in the case of private companies or business enterprises

    Notwithstanding anything contained in the Companies Act, 2017 (XIX of 2017), where any private company or business enterprise is wound up and any tax chargeable on the company or business enterprise, whether before, or in the course, or after its liquidation, in respect of any tax period cannot be recovered from the company or business enterprise, every person who was a owner of, or partner in, or director of, the company or business enterprise during the relevant period shall, jointly and severally with such persons, be liable for the payment of such tax.

    Section 58A: Representatives

    Sub-Section (1): For the purpose of this Act and subject to sub-sections (2) and (3), the expression “representative” in respect of a registered person, means:

    (a) where the person is an individual under a legal disability, the guardian or manager who receives or is entitled to receive income on behalf, or for the benefit of the individual;

    (b) where the person is a company (other than a trust, a Provincial Government, or local authority in Pakistan), a director or a manager or secretary or agent or accountant or any similar officer of the company;

    (c) where the person is a trust declared by a duly executed instrument in writing whether testamentary or otherwise, any trustee of the trust;

    (d) where the person is a Provincial Government, or local authority in Pakistan, any individual responsible for accounting for the receipt and payment of money or funds on behalf of the Provincial Government or local authority;

    (e) where the person is an association of persons, a director or a manager or secretary or agent or accountant or any similar officer of the association or, in the case of a firm, any partner in the firm;

    (f) where the person is the Federal Government, any individual responsible for accounting for the receipt and payment of moneys or funds on behalf of the Federal Government; or

    (g) where the person is a public international organization, or a foreign government or political sub-division of a foreign government, any individual responsible for accounting for the receipt and payment of moneys or funds in Pakistan on behalf of the organization, government, or political subdivision of the government.

    Sub-Section (2): Where the Court of Wards, the Administrator General, the Official Trustee, or any receiver or manager appointed by, or under, any order of a Court receives or is entitled to receive income on behalf, or for the benefit of any person, such Court of Wards, Administrator General, Official Trustee, receiver, or manager shall be the representative of the person for the purposes of this Act.

    Sub-Section (3): Subject to sub-section (4), where a person is a non-resident person, the representative of the persons for the purpose of this Act for a tax year shall be any person in Pakistan:

    (a) who is employed by, or on behalf of, the non-resident person;

    (b) who has any business connection with the non-resident person;

    (c) from or through whom the non-resident person is in receipt of any income, whether directly or indirectly;

    (d) who holds, or controls the receipt or disposal of any money belonging to the non-resident person;

    (e) who is the trustee of the non-resident person; or

    (f) who is declared by the 1[Commissioner] by an order in writing to be the representative of the non-resident person.

    Sub-Section (4): No person shall be declared as the representative of a non-resident person unless the person has been given an opportunity by the 1[Commissioner] of being heard.

    Section 58B: Liability and obligations of representatives

    Sub-Section (1): Every representative of a person shall be responsible for performing any duties or obligations imposed by or under this Act on the person, including the payment of tax.

    Sub-Section (2): Subject to section 58 and sub-section (5) of this section, any tax that, by virtue of sub-section (1), is payable by a representative of a registered person shall be recoverable from the representative only to the extent of any assets of the registered person that are in the possession or under the control of the representative.

    Sub-Section (3): Every representative of a registered person who pays any tax owing by the registered person shall be entitled to recover the amount so paid from the registered person or to retain the amount so paid out of any moneys of the registered person that are in the representative’s possession or under the representative’s control.

    Sub-Section (4): Any representative, or any person who apprehends that he may be assessed as a representative, may retain out of any money payable by him to the person on whose behalf he is liable to pay tax (hereinafter in this section referred to as the “principal”), a sum equal to his estimated liability under this Act, and in the event of disagreement between the principal and such a representative or a person as to the amount to be so retained, such representative or person may obtain from the 1[Commissioner] a certificate stating the amount to be so retained pending final determination of the tax liability, and the certificate so obtained shall be his authority for retaining that amount.

    Sub-Section (5): Every representative shall be personally liable for the payment of any tax due by the representative in a representative capacity if, while the amount remains unpaid, the representative:

    (a) alienates, charges or disposes of any moneys received or accrued in respect of which the tax is payable; or

    (b) disposes of or parts with any moneys or funds belonging to the person that is in the possession of the representative or which comes to the representative after the tax is payable, if such tax could legally have been paid from or out of such moneys or funds.

    Sub-Section (6): Nothing in this section shall relieve any person from performing any duties imposed by or under this Act on the person which the representative of the person has failed to perform.

  • Smuggling through ATT biggest threat to economic growth: PBC

    Smuggling through ATT biggest threat to economic growth: PBC

    KARACHI: Pakistan Business Council (PBC) in its budget proposals 2019/2020 has said that smuggling through Afghan Transit Trade is the biggest threat for economic growth of the country.

    “Smuggling through Afghan Transit Trade has always been the biggest threat for economic growth and hardly any sector has been left untouched by this menace,” the council said.

    Smuggled goods through the borders of Afghanistan, Iran, China, India and the Afghan Transit Trade from a chunk of the informal economy, volume of which ranges between 50-60 percent of the formal economy, the PCB said.

    “It is costing the national exchequer in billions. Markets across the country are flooded with smuggled goods and local industries are struggling for survival as smuggled goods are not only easily available everywhere but are also attracting the buyers who prefer foreign merchandise,” it said.

    The PBC suggested that goods moving under Afghan Transit Trade (ATT) from Pakistan to Afghanistan should be charged with duties and taxes under the Pakistani laws and the same should be transferred to Afghan government.

    Secondly, the duties and taxes so paid should be deposited with the State Bank in the US Dollar. Further, a quantitative restriction should be applied on goods moving under ATT on the basis of consumption.

    Giving rationale of the proposal, the PBC said that it would allow industry to fairly compete with unscrupulous imports, government to benefit from increased revenue.

    The PBC also suggested rationalizing import tariff to promote domestic manufacturing.

    The council said that the tariff structure had been distorted due to constant changes in the duty rates, the tariff structure was originally designed to support domestic manufacturing, however, changes in rates of import duties coupled with imposition of regulatory duty had led to situation where the tariff on finished products was less than that on the raw or intermediate goods.

    It said that a detailed tariff exercise with the objective of rationalizing the duty structure to promote domestic manufacturing was underway. Therefore, industry needs to be taken into confident in this matter.

  • DG Transit Trade announces auction of POL products on May 09

    DG Transit Trade announces auction of POL products on May 09

    KARACHI: Directorate General of Transit Trade, Karachi has announced auction of confiscated POL products to be held on May 09, 2019.

    In a notice issued on Tuesday, the directorate said that in order to dispose of auction able lots of petroleum, oil and lubricants (POL) products, lying at different container at terminals / wharves falling within the jurisdiction of the directorate, the oil/lubricant marketing companies are invited to offer their bids on the scheduled dates.

    The directorate will auction 25,000 liters of higher performance motor oil and 115 cartons of gear oil.

    The directorate also issued following terms and conditions for the auction:

    Auction will be as is whereas is basis;

    Only lube/oil marketing companies having valid registration with Oil and Gas Regulatory Authority (OGRA) shall be eligible to offer bid for POL products put to auction;

    Sealed bid offer(s) for motor oil and gear oils along with pay order(s) equal to 25 percent of the bid in favor of collector of customs, custom house, Karachi / Port Muhammad Bin Qasim, as the case may be, shall be furnished on the day of scheduled auction.

    Rest of the bid amount through bank draft shall be deposited within 07 days of the approval.

    Directorate General of Transit Trade, Custom House, Karachi reserves the right to accept or reject any bid without assigning any reason.