Pkrevenue.com

Year: 2019

  • FBR to take strict action against individuals, companies fail to file annual returns

    FBR to take strict action against individuals, companies fail to file annual returns

    ISLAMABAD: Federal Board of Revenue (FBR) may take strict action against persons failed to file their annual returns for tax year 2019, besides imposing penal amount for late filing.

    Sources in FBR on Tuesday said that individuals and corporate entities (having special tax year) have six more days to file their returns in order to avoid strict action and paying late filing amount.

    The last date for filing income tax returns for tax year 2019 is December 16, 2016. The FBR granted third extension for filing returns on November 29, 2019.

    The actual date for filing income tax returns for tax year 2019 was September 30, 2019 for salaried persons, business individuals, Association of Persons (AOPs) and corporate entities having special tax years.

    The sources said that under Income Tax Ordinance, 2001 the defaulting taxpayers would face imprisonment up to three years.

    However, persons or companies filing tax returns after the due date will be liable to pay penalty amount to ensure their names on the Active Taxpayers List (ATL).

    The sources said that the income tax return filing for tax year 2018 had reached to a record high of 2.71 million by week ended November 30, 2019.

    They said that a large number of people were still filing their returns for tax year 2018 in order to appear on ATL 2018, which would remain in vogue till February 29, 2020.

    The new ATL for tax year 2019 will be published by the FBR on March 01, 2020.

    The sources said that the appearance the name on ATL had become important after the introduction of 10th Schedule to the Income Tax Ordinance, 2001 through Finance Act, 2019.

    They said that those persons having filed their returns but not on the ATL or those persons failed to file their returns are subject to 100 percent higher withholding tax rates.

  • HBL plans network expansion in China

    HBL plans network expansion in China

    KARACHI: Habib Bank Limited (HBL) has planned to expand its network in China, according to corporate briefing on Tuesday.

    According to Topline Research, the HBL is planning to expand its network in China. Talks are in advanced stages of giving HBL rep office a branch status, additionally One-Belt One-Road (OBOR) based countries are to be assisted by HBL where Chinese presence is limited.

    Key theme for the bank is focused on key real sectors with segments like Agri financing and SME finance.

    In 2020 the bank is expected to move away from one off costs and move towards a normalized cost to income ratio with a long term target of sub 50 percent.

    Customer base to cross 20 million in the coming year versus 16 million currently, translating into higher fee income going forward.

    Current account are targeted to cross the one trillion mark, keeping cost of deposit low.

    The banks’ focus is on innovation through technology.

    The Bank focuses on “STARS” strategy encompassing:

    • Sustaining Success (maintain position in deposits, IB, treasury and rural banking)

    • Turnaround (revitalization of international division and home remittance)

    • Acceleration (consumer finance)

    • Realignment (commercial banking fis and Islamic banking)

    • Startups (emphasis on branchless banking and digital banking)

    Key Initiatives of the banks are 1) branchless banking through Konnect aimed to capture a new market through smartphones, 2) Power sector prowess through various IB based transactions and 3) Launch of Panda bonds.

    Open position secured to pay New York penalty is winding down by 25-30 percent by end of 2019.

  • Car sales witness 45 percent decline in July – November

    Car sales witness 45 percent decline in July – November

    KARACHI: Car sales witnessed 45 percent decline during first five months (July-November) 2019/2020 owing to increased prices and high cost of auto financing.

    According to sales data released by Pakistan Auto Manufacturers Association (PAMA), the industry witnessed sale of 54,950 units during first five months of current fiscal year as compared with 100,643 units in corresponding months of the last fiscal year.

    Analysts at Topline Securities attributed the fall to higher auto prices post rupee devaluation and higher interest rates for auto financing.

    Honda Cars (HCAR) sales fell 67 percent to 7,141 units during July – November 2019/2020 as compared with 21,911 units in the same period of the last fiscal year.

    Honda Cars sales 62 percent YoY during November 2019, where combined sales of City and Civic fell by 66 percent YoY, however it recorded increase of 4 percent on Month on Month (MoM). BR-V reported a decline of 24 percent YoY and 34 percent MoM.

    The car sales of Indus Motors (INDU) fell by 57 percent to 11,843 units during first five months of current fiscal year as compared with 27,307 units in the same months of the last fiscal year.

    Indus Motors (INDU) reported second consecutive MoM increase in volumetric sales; up by 6 percent MoM mainly due to 10 percent MoM and 8 percent MoM increase in its Corolla and Fortuner variants, respectively.

    This increase in volumes is on the back of aggressive promotions, discounts & different waiver schemes offered by company in collaboration with commercial banks. However, INDU continues to report a decline on YoY basis; down by 52 percent YoY in November 2019.

    The sales of Pak Suzuki Motors Company (PSMC) posted decline of 30 percent to 35,966 units during first five months of current fiscal year as compared with 51,425 units in the corresponding period of the last fiscal year.

    Pak Suzuki recorded a 31 percent YoY decline in November 2019. The decline in sales was led by Wagon-R and Cultus, which is down 70 percent YoY and 41 percent YoY respectively.

    Furthermore Alto has also depicted monthly decline of 27 percent YoY which is highest since its launch.

    Bolan and Ravi variants are down 58 percent and 56 percent YoY, respectively. Swift sales were down by 42 percent YoY.

    The analysts expect recovery in car volumes from start of 2020 as auto volumes will likely bottom out in December 2019.

  • Overseas Pakistanis send $9.298 billion in five months

    Overseas Pakistanis send $9.298 billion in five months

    The State Bank of Pakistan (SBP) reported on Tuesday that overseas Pakistani sent $9.298 billion during the first five months of the current fiscal year, spanning from July to November. This figure compares closely with the $9.282 billion received during the same period in the preceding year.

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  • FBR issues draft rules for business license scheme

    FBR issues draft rules for business license scheme

    ISLAMABAD: Federal Board of Revenue (FBR) has issued draft rules for business license scheme, which will be mandatory for every person engaged in any business, profession or vocation.

    Under Section 181D of Income Tax Ordinance, 2001, which is the new section introduced through Finance Act, 2019.

    The following are the draft rules for business license scheme:

    83A. The rules in this Chapter apply for the purposes of business license scheme.

    83B. Definitions.— in these rules, unless there is anything repugnant to the subject or context,—

    (a) “applicant” means a person who files application for issuance of business license;

    (b) “Iris” means the application software on the web portal of Federal Board of Revenue for the purposes including application for business license;

    (c) “service provider” means any person whose services to provide electronic data entry into Iris or any other web based application software, bio-metric verification and delivering the print out of the business license to the applicant for the purposes of these rules, has been hired by the Federal Board of Revenue.

    83C. Application for and issuance of business license

    (1) Subject to sub-rule (4), any person engaged in any business, profession or vocation, shall apply to the Federal Board of Revenue for issuance of business license in the Form specified in the schedule.

    (2) Where the applicant is having a cell phone number, issued by any mobile phone company and is having access to the internet facility, he shall file application form on the Iris or any software application developed by Federal Board of Revenue for the purposes of these rules. The system generated business license issued to the applicant shall be emailed to the applicant.

    (3) Where the applicant is not having any cell phone number issued by any mobile phone company or not having access to internet facility, he shall provide the particulars to the service provider or the personnel in a Kiosk established by a Regional Tax Office, for online filing of the form, and the service provider or the personnel in the Kiosk, as the case may be, shall—

    (i) verify particulars of the form filled in;

    (ii) complete bio-metric verification of the applicant; and

    (iii) give system generated print out of the business license to the applicant;

    (4) Where a person’s name is appearing in the active taxpayers’ list, he shall be treated to have filed application and the system generated business license shall be emailed to his email address registered in Iris.

    83D. Display of the business license

    (1) Every person who has been issued a business license under these rules, shall display the said license at every place of business of the person.

    83E. No liability on holding a business license

    Where a person has been issued a business license, he shall not be liable to payment of any tax on account of holding a business license unless such person is otherwise liable to payment of tax under any other provisions of the Income Tax Ordinance, 2001.

  • Stock market gains 222 points amid cautious buying

    Stock market gains 222 points amid cautious buying

    The Pakistan Stock Exchange (PSX) experienced a moderate rise on Tuesday, with the benchmark KSE-100 index closing up by 222 points, settling at 40,665 points compared to the previous close of 40,443 points.

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  • Rupee ends flat amid demand for import payments

    Rupee ends flat amid demand for import payments

    KARACHI: The rupee ended flat against dollar on Tuesday owing to demand from import and corporate buyers.

    The rupee ended Rs154.98 to the dollar from previous day’s closing of Rs154.97 in interbank foreign exchange market.

    Currency dealers said that the market witnessed demand from importers and corporate buyers for dollars. However, inflows offset the demand and the rupee depreciated by one paisa.

    The foreign currency market was initiated in the range of Rs155.00 and Rs155.04. The market recorded day high of Rs155.00 and low of Rs154.95 and closed at Rs154.98.

    The exchange rate in open market witnessed appreciation of rupee by 10 paisas against dollar. The buying and selling of dollar was recorded at Rs154.50/Rs154.80 from previous day’s closing of Rs154.60/Rs154.90 in cash ready market.

  • FBR starts consultations for implementing track, trace system

    FBR starts consultations for implementing track, trace system

    ISLAMABAD: Federal Board f Revenue (FBR) has launched consultations with various sectors for implementing track and trace system to prevent revenue leakages.

    A FBR statement said that to prevent leakage of revenue, under-reporting of production and sales, and to ensure proper payment of FED and Sales Tax on the manufacture and sale of specified goods/ products, the FBR has decided to implement a Track and Trace System for specified goods/ products i.e. Cement, Sugar, Fertilizer and Beverages imported into or manufactured in Pakistan.

    Project Office of Federal Board of Revenue (FBR), confirmed that they have finalized all bidding documents relating to issuance of license of Electronic Monitoring of Production/ Sales and Track and Trace System of the four major sectors Sugar, Cement, Fertilizer and Beverages, the Press Release stated.

    Instructions for Licensing (IFL) and related documents will be published in January, 2020 after consulting all major sectors/ Stakeholders. In order to arrive at the best possible solution, FBR plans to hold meetings with all stakeholders for their input, suggestions and recommendations.

    First meeting in this regard was held on 2nd December, 2019 with Cement manufactures. Second meeting with the Fertilizer manufacturers was held on 5th December, 2019 and third meeting is scheduled on 12th December, 2019.

  • SBP receives $1.3 billion from Asian Bank for economic reforms

    SBP receives $1.3 billion from Asian Bank for economic reforms

    KARACHI: State Bank of Pakistan (SBP) has said that it received $1.3 billion from Asian Development Bank (ADB) on Monday night.

    In a tweet message, the central bank confirmed the transfer of $1.3 billion from the ADB.

    Earlier in the day Minister for Economic Affairs, Muhammad Hammad Azhar witnessed the signing of two loans programme amounting to US $1.3 billion between the government of Pakistan and the ADB for economic reforms.

    The loan agreements were signed by Secretary, Economic Affairs Division, Dr Syed Pervaiz Abbas and Ms Xiaohong Yang, Country Director, Asian Development Bank (ADB).

    Under Special Policy-Based Loan (SPBL) Facility, Asian Development Bank has committed to providing US $1 billion for Economic Stabilization Programme.

    This programme aims at improving exchange rate management, strengthen public financial management to mobilize more revenues, restore allocated efficiency of scarce public resource, address the power sector pricing issues and reduce the social impacts of macroeconomic stability measures by improved targeting and transparency of existing social protection programmes.

    Out of total US $1.3 billion loan, US $ 300 million is allocated to Energy Sector Reforms and Financial Sustainability Program (Subprogram 1).

    It will address issues regarding energy shortfalls, technical lacuna’s and policy related shortcomings in Pakistan’s energy sector.

    The programme will help to secure financial sustainability by controlling new accumulation of circular debt; strengthen governance by rationalizing competitive market road-map, separation of policy and regulatory functions in hydrocarbons sector, appointment of appellate tribunals, implementation of multi-year tariffs and un-bundling of gas sector and reinforce infrastructure improvements through integrated planning to facilitate public and private sector investment across the energy supply chain.

  • Customs announces auction of smuggled vehicles on Dec 11 at ASO Karachi

    Customs announces auction of smuggled vehicles on Dec 11 at ASO Karachi

    KARACHI: Pakistan Customs has announced auction of smuggled vehicles to be held on December 11, 2019 at Anti-Smuggling Organization (ASO) Office, Ghasbandar, Keamori, Karachi.

    Following used vehicles will be auctioned on December 11, 2019:

    01. Toyota Lexus Car – Reg No. UC-868 -Model-2006- (As per seat Belt) Chassis: JTHBG 963905034702 / Engine EMH-3 GR-FE158467 – 3485 cc. at State Warehouse-III- Near PICT Gate-Keamori

    02. Toyota Harrier Jeep – Reg.No-JAA-454 – Model-1998 – 2999cc, Chassis No-MCU-10-0013510 – Engine No- IMZ-FE6688090. at State Warehouse-III- Near PICT Gate-Keamori

    03. Toyota Mark-II Saloon Car / Reg. No-BBL-708 / Model-2000 / 1800 HP, Chassis No-JZX110-6000922 / Engine No-1JZ-075010, In Front of ASO HQ Ghasbandar East Eharf

    04. Toyota AXIO-X car – White Colour – Reg.No.BFE-068 – 1496 cc – Model-2007, Chassis : NZE-141-6028039 / Engine : INZ-C0360547 at State Warehouse-III- Near PICT Gate-Keamori

    05. Toyota Land Cruiser Jeep – Silver Colour Reg. No. BG-1131 – Model-1989 – 3400 cc, Chassis : BJ 60-023765 – Engine : 3B-1098887(As per Reg.Book). DIESEL at State Warehouse-III- Near PICT Gate-Keamori

    05. Mercedes Benz Saloon Car – Black Reg. No- BFF-014 / – Model- 2007, Chassis No. WDD2193222A117436 / Engine No. 64292040471958 / 3200 CC at ASO NMB Wharf EW

    06. Toyota Land Cruiser Jeep – P.White Reg.No. LZN-888 – Model – 1999 – 4663 CC, Chassis No-UZJ 100-0081129 / Engine No- 2 UZ-0132269. at ASO – NMB Wharf EW

    07. Toyota Surf Jeep – White Reg.No.BF-9252 – Model-1998, Chassis No. RZN185-9019896 / Engine No. 3RZ-FE. At ASO – NMB Wharf EW

    08. Toyota Hilux Surf Jeep – Reg. No. CJ-4242 (Sindh) – Model-1990 – 2446 CC, Chassis No LN130-0026273 / Engine No. 2L-2264058 at ASO – NMB Wharf EW

    09. Nissan X-Trail 5 Door Jeep – Pearl White Reg. No. GR-621 – Model-2005 ( As per seat Belt Model-2000 ), Chassis No. NT 30-100374 – Engine No. QR 20 (DE) at ASO – NMB Wharf EW

    10. Toyota Mark- X Car – Trim Reg. No. BFB – 837 – Model-2005 – 2499 CC, Chassis No. GRX 120-3007142 / Engine No. 4 GR-0093992 at ASO – NMB Wharf EW

    11. Toyota Land Cruiser Jeep – ( Petrol ) White Reg. No. BF-5933 – Model-1995 – 4476 CC, Chassis No. FZJ 80-0109507 / Engine No. at ASO – NMB Wharf EW

    12. Honda Civic Hybird Car Reg. No. AND-312 – Model-2008 – 1339 CC, Chassis No. FD 3-1203642 / Engine No. DAA-1984158 at ASO – NMB Wharf EW

    13. Toyota PASSO car Reg. No. GS-6996 – Model-2010 – 996 CC, Chassis No. KGC 30-0044392 / Engine No. IKR 1144091 at ASO – NMB Wharf EW

    14. Toyota AIXO Car Re.No. KCH-434 – Model-2006 – 1496 CC, Chassis No. NZE141-6003694 at ASO – NMB Wharf EW

    15. Mercedes Benz Saloon Car (AG) – Reg.No. # AB 1001, Chassis No-WDB1240312B476728 at ASO – NMB Wharf EW

    16. Toyota Hilux Surf Heep – Reg,No. UU-691 – Modle – 1992 – 240CC., Chassis – LN130-7022502 – Engine No-3244904 at ASO – NMB Wharf EW.

    17. Toyota Mark-X Car Reg.No. BGD-647(Karachi) – Model – 2005 – 2499 CC, Chassis No. GRX120-004523 Engine No. 4 GR-0119104 at ASO – NMB Wharf EW.

    18. Toyota RURIO Saloon Car Reg. No. BFA – 954 (Karachi) – Model – 2006 – 1496 CC – Colour Sky Blue., Chassis No. NCZ20-0051360 Engine No. 1NZB-240903 at ASO – NMB Wharf EW.

    19. Honda Civic Hybird Car Reg. No. AXC – 614 – Model-2012 , Chassis No – JHMFD-36208S205131 – at ASO – NMB Wharf EW.

    20. Toyota Surf Jeep – Reg.No. AFR-2019 – Model – 2000 – 2693 CC., Chassis No-RZN185-0040063 Engine No. 3RZ-FE at ASO – NMB Wharf EW.

    21. Toyota VITZ Car Reg. No. AKV – 219 (Sindh) – Model – 2006 – 1296 CC., Chassis No. SCP90-5081452 at ASO – NMB Wharf EW.

    22. Toyota AXIO Saloon Car – Reg.No. AWB-204 – Model – 2008 – 1496 CC, Chassis No. NZE141-6088775 Engine No. INZ – C837894 at ASO – NMB Wharf EW.

    23. VITZ Car Rsg. No. BFB-648 (karachi) – Model – 2003 – 997 CC – White., Chassis No. SCP10-0432762 – Engine No. 1107800 at ASO – NMB Wharf EW.

    24. Toyota Premio Car Reg. No. BFL-098 – Model – 2005, Chassis No. ZZT – 240-0096078 Engine No. IZZ-FE at ASO – NMB Wharf EW.