Day: July 2, 2019

Finance Act 2019: Tax slabs for AOPs, business individuals

ISLAMABAD: Federal Board of Revenue (FBR) has notified tax rates on income derived by Association of Persons (AOPs) and business individuals during fiscal year 2019/2020.

According to the Finance Act, 2019 following are the tax slabs to be applicable on the income of AOPs and business individuals for the tax year 2020:

S. No	Taxable Income	Rate of Tax
(1)	(2)	(3)
1.	Where taxable income does not exceed Rs. 400,000	0%
2.	Where taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,000	5% of the amount exceeding Rs. 400,000
3.	Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000	Rs. 10,000 plus 10% of the amount exceeding Rs. 600,000
4.	Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000	Rs. 70,000 plus 15% of the amount exceeding Rs. 1,200,000
5	Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000	Rs. 250,000 plus 20% of the amount exceeding Rs. 2,400,000
6	Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000	Rs. 370,000 plus 25% of the amount exceeding Rs. 3,000,000
7.	Where taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000	Rs. 620,000 plus 30% of the amount exceeding Rs. 4,000,000
8.	Where taxable income exceeds Rs. 6,000,000	Rs. 1,220,000 plus 35% of the amount exceeding Rs. 6,000,000

July 2, 2019

Finance Act 2019: Tax slabs for salary income

ISLAMABAD: The Parliament has approved the Finance Bill 2019 to implement rate of income tax on salary income.

The statutory exempt income has been enhanced to Rs600,000 for tax year 2020 through Finance Act, 2019.

S.No	Taxable Income	Rate of Tax
(1)	(2)	(3)
1.	Where taxable income does not exceed Rs. 600,000	0%
2.	Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000	5% of the amount exceeding Rs. 600,000
3.	Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000	Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000
4.	Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000	Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000
5.	Where taxable income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000	Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000
6.	Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000	Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000
7.	Where taxable income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000	Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000
8.	Where taxable income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000	Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000
9.	Where taxable income exceeds Rs. 12,000,000 but does not exceed Rs.30,000,000	Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000
10.	Where taxable income exceeds Rs. 30,000,000 but does not exceed Rs.50,000,000	Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000
11.	Where taxable income exceeds Rs. 50,000,000 but does not exceed Rs.75,000,000	Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000
12.	Where taxable income exceeds Rs.75,000,000	Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000″;

The tax slabs should be applicable on a person’s where the income of an individual chargeable under the head “salary” exceeds seventy-five per cent of his taxable income.

July 2, 2019

Headline inflation increases by 8.9 percent in June

ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) increased by 8.9 percent on year-on-year basis in June, 2019 as compared to an increase of 9.1 percent in the previous month and 5.2 percent in June 2018, Pakistan Bureau of Statistics (PBS) said on Tuesday.

On month-on-month basis, it increased by 0.4 percent in June 2019 as compared to an increase of 0.8 percent in the previous month and an increase of 0.6 percent in corresponding month i.e. June 2018.

Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 7.2 percent on (YoY) basis in June 2019 as compared to an increase of 7.2 percent in the previous month and 7.1 percent in June 2018.

On (MoM) basis, it in-creased by 0.3 percent in June 2019 as compared to an increase of 0.4 percent in previous month, and an increase of 0.3 percent in corresponding month of last year i.e. June 2018.

Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 7.3 percent on (YoY) ba-sis in June 2019 as compared to 7.5 percent in the previous month and by 5.4 percent in June 2018.

On (MoM) basis, it in-creased by 0.4 percent in June 2019 as compared to an increase of 0.4 percent in the previous month and an increase of 0.2 percent in corresponding month of last year i.e. June 2018.

Sensitive Price Indicator (SPI) based inflation on YoY basis increased by 10.6 percent in June 2019 as compared to an increase of 10.8 percent a month earlier and an increase of 1.9 percent in June 2018.

On MoM basis, it increased by 1.6 percent as compared to an increase of 1.2 percent in the previous month and an increase of 1.8 percent in corresponding month of last year i.e. June 2018.

Wholesale Price Index (WPI) inflation on YoY basis increased by 12.7 percent in June 2019 as compared to an increase of 14.0 percent a month earlier and an increase of 7.6 percent in June 2018.

WPI inflation on MoM basis increased by 0.3 percent in June 2019 as compared to an increase of 1.4 percent a month earlier and an increase of 1.5 percent in corresponding month of last year i.e. June 2018.

July 2, 2019
Karachi Chamber urges FBR to adjust refunds of previous amnesty’s refunds

KARACHI: President Karachi Chamber of Commerce and Industry (KCCI) Junaid Esmail Makda, while referring to his conversation with Minster of State for Revenue Hammad Azhar and Member IR – FBR Dr. Hamid Ateeq Sarwar during meetings in Islamabad, stated that after listening to the grievances being faced by those individuals whose asset declaration cases were stuck up due to some IT glitches on last day of Amnesty Scheme 2018, the State Minister and Member IR suggested that five percent tax paid against the assets declared by such individuals can be refunded so that they could re-declare their assets in this year’s Asset Declaration Scheme.

In a statement issued on Tuesday, President KCCI pointed out that KCCI received numerous complaints about unprocessed cases of last year’s amnesty scheme in which although the individuals submitted their taxes well in time within the last date of the amnesty scheme but their cases were not processed in FBR’s portal and to date, the fate of all such cases has not be decided.

“KCCI has written numerous letters from time to time so that the issue could be resolved and the policymakers have been assuring to look into this issue but no relief has been provided so far”, he added.

He said that as the government was making all out efforts to make this year’s Asset Declaration Scheme successful, they must look into the possibility of providing relief to such individuals whose cases were not processed in last year’s Amnesty Scheme due to congestion in FBR’s portal or any other IT-related glitch.

Junaid Makda suggested that FBR should come up with a relevant notification in this regard in which they must announce refunds to such cases so that these individuals could quickly avail this year’s amnesty scheme.

He was fairly optimistic that keeping in view the government’s seriousness towards the Ease of Doing Business, the FBR would look into this matter and accordingly announce relief for such individuals as per commitment which would encourage many others to come forward to participate in this year’s Asset Declaration Scheme.

He was of the opinion that although the last date for Asset Declaration Scheme has been extended for three more days but it was not suffice and the government must extend it for at least 30 more days so that maximum number of people could avail this scheme which would prove beneficial for the national exchequer. “The business community remained heavily engaged in identifying budget anomalies, leaving a very little time to examine and look into the possibility of benefitting from Asset Declaration Scheme whose deadline has to be extended”, he added.

July 2, 2019
Stock market gains 311 points on improved rupee value

KARACHI: The stock market gained 311 points on Tuesday amid improvement in rupee value and signing of IMF loan program on July 03.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,307 points as against 33,996 points showing an increase of +311 points.

Analysts at Arif Habib Limited said that despite the bearish outlook at the start of the day, courtesy high Rupee:USD parity, pending sign-off of IMF Loan package on July 3rd and increase in gas and electricity tariffs besides the protest of textile and cement processors / dealers.

Two of the major macro economic indicators that positively impacted the market were decline in rupee:dollar parity as well as a lower reading of Inflation against street consensus.

Overall, Cement, Refinery, E&P and steel sector performed well today. Power sector led the volumes table with 15 million shares, followed by Chemical (14 million). KEL topped the volumes with 13.5 million shares, followed by TRG (8 million) and LOTCHEM (7 million).

Sectors contributing to the performance include Fertilizer (+84 points), Banks (+71 points), Cement (+40 points), E&P (+31 points) and Pharma (+23 points).

Volumes increased from 48 million shares to 91.1 million shares (+90 percent DoD. Average traded value also increased by 74 percent to reach US$ 19.3 million as against US$ 11 million.

Stocks that contributed significantly to the volumes include KEL, TRG, LOTCHEM, UNITY and MLCF, which formed 44 percent of total volumes.
Stocks that contributed positively include FFC (+40 points), HBL (+34 points), NBP (+17 points), LUCK (+17 points) and MCB (+17 points).

Stocks that contributed negatively include NESTLE (-24 points), MEBL (-6 points), PSMC (-3 points), THALL (-3 points) and SML (-2 points).

July 2, 2019
Rupee gains against dollar on positive IMF deal expectations

KARACHI: The Pak Rupee gained Rs1.99 against dollar on Tuesday owing to hopes of positive outcome of IMF board meeting on Pakistan loan program.

The rupee ended Rs158.06 to the dollar from the closing of last trading day on June 28, 2019 at Rs160.05 in interbank foreign exchange market.

The foreign currency market was initiated at Rs159.50 and Rs160.50. The market recorded day high of Rs159.75 and low of Rs157.50 and closed at Rs158.06.

The exchange rate in open market also witnessed appreciation in value of the local unit.

The buying and selling of dollar recorded at Rs156.50/Rs157.50 from last Saturday’s closing of Rs159.50/Rs161.00 in cash ready market.

July 2, 2019
FBR grants general relaxation to file tax year 2018 income returns up to August 02

ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday extended the date for filing income tax returns and wealth statement for tax year 2018 up to August 02, 2019 for all persons required to file their returns under Income Tax Ordinance, 2001.

The FBR issued Circular No. 07 dated July 02, 2019 to grant extension for filing income tax returns

A day earlier the FBR issued Circular No. 06 and allowed persons, who own immovable properties and motor vehicles above engine capacity 1000CC to file their income tax returns up to August 02, 2019.

The FBR said that in continuation of Circular 06/2019 dated 01.07.2019, the other individuals/ AOPs and companies who were required to file their income tax returns/ statements for the Tax Year 2018 but have not filed, may avail the opportunity of filing of income tax return/ statement for the tax year 2018. Similarly, the individuals/ AOPs and companies who intend to revise the income tax return for the tax year 2018, may file revised income tax return/ statements till 02.08.2019.

Accordingly, in exercise of the powers conferred under Section 214A of the Income Tax Ordinance, 2001, the Federal Board of Revenue is pleased to further extend the date of filing of Income Tax Returns/ Statements for the Tax Year 2018 for individuals/ AOPs and companies up to August 02, 2019.

July 2, 2019
FBR allows immovable property, motor vehicle owners to file tax year 2018 returns up to August 02

ISLAMABAD: Federal Board of Revenue (FBR) on Monday extended the date for filing income tax return and wealth statement for tax year 2018 up to August 2, 2019 for taxpayers, who own immovable properties and motor vehicles.

The FBR issued Income Tax Circular No. 06 dated July 01, 2019 for extension in date of filing of income tax returns/ statements for tax year 2018.

The FBR said that following persons are required to furnish a return of income for tax year in terms of Section 114(1)(b)(iii) to (vi) of the Income Tax Ordinance, 2001:

(iii) Owns immovable properties with land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory.

(iv) Owns immovable property with a land area of five hundred square yards or more located in a rating area;

(v) Owns a flat having covered area of two thousand square feet or more located in a rating area;

(vi) Owns a motor vehicle having engine capacity above 1000CC;

The FBR said that it is observed that some taxpayers falling under above conditions have not filed their income tax return/statement for the tax year 2018. “In order to facilitate the taxpayers falling under the above categories , they are hereby given an opportunity to file their income tax return/ statements.”

The FBR further said that in order to facilitate it has been decided to extend the date of filing of income tax return/statements for the tax year 2018 up to August 02, 2019 for taxpayers of above mentioned categories.

July 2, 2019