Pkrevenue.com

Day: November 18, 2019

  • SBP facilitates exports against advance payment

    SBP facilitates exports against advance payment

    KARACHI: State Bank of Pakistan (SBP) has amended framework related to trade based money laundering in order to facilitate receiving export payment.

    The SBP on Monday issued amendment to Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing.

    The central bank invited attention of the banks and exchange companies to FE Circular No. 04 dated October 14, 2019 regarding the above subject.

    The SBP said that in order to facilitate export against advance payment, the Para 6(b)(i)(e) of the Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing has been amended as under:

    “e) Guideline at (a)(c) & (d) above shall be followed while making declaration on Advance Payment Voucher (Appendix V-14). Moreover, it shall be ensured by ADs that in case of exports against advance payment, declaration made on EFE/MFE is strictly in accordance with the particulars declared on Advance Payment Voucher including the name of the consignee. In case advance payment is received from an entity other than the consignee, the ADs shall ensure the same is verified through a swift message or underlying contract and the related risks, including the risk of under/over invoicing are adequately addressed.”

    Prior to amendment the paragraph was read as:

    “e) Guideline at (a)(c) & (d) above shall be followed while making declaration on Advance Payment Voucher (Appendix V-14). Moreover, it shall be ensured by ADs that in case of advance payment export, declaration made on EFE/MFE is strictly in accordance with the particulars declared on Advance Payment Voucher and name of consignee declared on EFE/MFE is of the same entity from which the advance payment is received.”

    The SBP said that all other terms and conditions on the subject shall remain unchanged.

    Further, the instructions related to advance remittance for export of fresh fruits/vegetables as contained in Para 27, Chapter 12 of Foreign Exchange Manual shall also remain unchanged.

    Authorized Dealers are advised to bring the same to the notice of all their constituents.

  • Tax return filing reaches to new record high of 2.68 million

    Tax return filing reaches to new record high of 2.68 million

    ISLAMABAD: The number of income tax return filings has surged to a record level of 2.68 million for the tax year 2018, according to the latest statistics compiled up to November 17, 2019.

    (more…)
  • Customs directed to verify seized vehicles carrying smuggled goods

    Customs directed to verify seized vehicles carrying smuggled goods

    ISLAMABAD: Syed Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) has directed customs authorities to launch verification of seized vehicles carrying smuggled goods.

    A statement issued on Monday, the FBR chairman directed the customs field offices to identify smuggled items and take strict action against offenders.

    On the instructions of Syed Shabbar Zaidi, Chairman FBR, Customs Wing has issued instructions to all its field formations to verify the genuineness of all seized conveyances being used to transport smuggled goods through verification from Forensic Science Laboratory, Registration Database of Excise & Taxation Department and Customs Clearance documents.

    The field formations have been further instructed to initiate separate legal proceedings in case such conveyances are found to be smuggled or with tampered chassis number.

    These instructions will greatly help in dismantling the smuggling network being used to transport smuggled goods.

    In line with the recommendations of the Prime Minister’s Steering Committee on Anti-smuggling, Pakistan Customs being the country’s lead Anti-Smuggling Organization has accordingly stepped up enforcement actions in coordination with other Law Enforcement Agencies.

  • Foreign investment increases to $1.1 billion owing to debt securities attraction

    Foreign investment increases to $1.1 billion owing to debt securities attraction

    KARACHI: Pakistan’s total inflow of foreign investment has increased to $1.1 billion during first four months (July – October) 2019/2020 as compared with outflow of $77.5 million in the corresponding months of the last fiscal year, State Bank of Pakistan (SBP) said on Monday.

    The inflows can be attributed to attractive avenue in the debt securities for foreign participants.

    The total portfolio investment has been recorded at $436.7 million during first four months of the current fiscal year as compared to a negligible amount in the same period of the last fiscal year.

    The total inflow of foreign private investment was at $665.7 million during first four months of the current fiscal year as compared with $77.6 million outflow in the corresponding months of the last fiscal year.

    The foreign direct investment also grew by 238.7 percent to $650 million during period under review as compared with $192 million in the same period of the last fiscal year.

    The inflow of portfolio investment in capital market was recorded at $15.6 million as compared with outflow of $269.5 million.

  • Stock market gains 828 points as majority scrips traded in green

    Stock market gains 828 points as majority scrips traded in green

    The stock market witnessed a robust rally on Monday as the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) surged by 828 points, closing at 38,412 points, up from the previous close of 37,584 points.

    (more…)
  • Rupee gains four paisas against dollar on inflows

    Rupee gains four paisas against dollar on inflows

    KARACHI: The Pak Rupee gained four paisas against dollar on Monday owing to sufficient inflows.

    The rupee ended Rs155.35 to the dollar from last Friday’s closing of Rs155.39 in interbank foreign exchange market.

    Currency experts said that the inflows of export receipts and remittances helped the rupee to gain values.

    The foreign currency market was initiated in the range of Rs155.38 and Rs155.42. The market recorded day high of Rs155.40 and low of Rs155.35 and closed at Rs155.35.

    The exchange rate in open market the rupee witnessed slight gain. The buying and selling of dollar was recorded at Rs155.20/Rs155.40 from previous level of last Friday’s of Rs155.20/Rs155.50.

  • SBP to announce monetary policy on Nov 22

    SBP to announce monetary policy on Nov 22

    KARACHI: State Bank of Pakistan (SBP) will announce monetary policy on Friday, November 22, 2019 for next two months, said a statement on Monday.

    The SBP kept the policy rate unchanged at 13.25 percent in its monetary policy announcement on September 16, 2019.

    In the previous monetary policy, the SBP noted two key developments since the last MPC meeting.

    First, the interbank foreign exchange market had adjusted relatively well to the introduction of the market-based exchange rate system.

    The initial volatility and associated uncertainty in the exchange market had subsided.

    Reflecting these improved sentiments and continued adjustment in the current account, the rupee had strengthened modestly against the US dollar since the last MPC, unlike its previous trend.

    Second, on the external front, the US Fed, as anticipated, reduced its policy rate by 25 basis points (bps), followed by policy rate cuts by other major central banks around the world.

    This would help in lowering pressures on emerging markets’ currencies and potentially increase financial inflows.

  • Half of registered companies not complying with mandatory return filing

    Half of registered companies not complying with mandatory return filing

    ISLAMABAD: Almost half of the companies registered with Securities and Exchange Commission of Pakistan (SECP) have been found as non-compliant in mandatory income tax return filing.

    The Year Book 2018/2019 of Federal Board of Revenue (FBR) revealed that 43,246 corporate returns were filed for Tax Year 2018.

    However, the official details shared by SECP showed that it registered 87,622 companies by June 30, 2018.

    According to Section 114 of Income Tax Ordinance, 2001 it is mandatory for every company to file annual income tax return.

    The statistics of FBR’s Year Book 2018/2019, however, revealed that corporate return filing was gradually increasing.

    However, despite all efforts the corporate return filing was increased to 43,246 for Tax Year 2018, which was 38,417 in Tax Year 2017 and 35,504 in Tax Year 2016.

    The overall income tax return filing has witnessed sharp increase in tax year 2018. The FBR data showed that the total return filing increased to 2.66 million in tax year 2018 as compared with 1.89 million in tax year 2017, showing 41 percent increase.

    The significant growth was seen in return filing by individuals. The individuals including salary and business filed 2.56 million annual returns for tax year 2018 as compared with 1.79 million in tax year 2017, showing 42.4 percent increase.

    The FBR said that in past the trend for filing of income tax returns has not been satisfactory in Pakistan.

    Keeping in view very low compliance, FBR had initiated a Broadening of Tax Base (BTB) drive few years ago, which has not started paying dividends in shape of growth in the number of filers.

    The income tax returns which were just 1.5 million in tax year 2016 have crossed the two million mark first time in the history of FBR.

    During tax year 2017 the number of income tax filers reached to 1.9 million and in tax year 2018 increased to 2.2 million.

    During TY 2018 the number of return filers increased by 17.1 percent or 316,526 in absolute terms.

    This performance in terms of number of returns is satisfactory but payment with returns has a meager growth of 3.0 percent, which is the matter of concern.