Pkrevenue.com

Year: 2019

  • Headline inflation increases by 9.4pc in March

    Headline inflation increases by 9.4pc in March

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 9.4 percent on year-on-year basis in March, 2019 as compared to an increase of 8.2 percent in the previous month and 3.2 percent in March 2018.

    The Pakistan Bureau of Statistics (PBS) on Monday said that on month-on-month basis, it increased by 1.4 percent in March 2019 as compared to an increase of 0.6 percent in the previous month and an increase of 0.3 percent in corresponding month i.e. March 2018.

    Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 8.5 percent on (YoY) basis in March 2019 as compared to an increase of 8.8 percent in the previous month and 5.8 percent in March 2018.

    On (MoM) basis, it increased by 0.5 percent in March 2019 as compared to an increase of 0.2 percent in previous month, and an increase of 0.7 percent in corresponding month of last year i.e. March 2018.

    Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 7.9 percent on (YoY) basis in March 2019 as compared to 7.7 percent in the previous month and by 4.1 percent in March 2018. On (MoM) basis, it increased by 0.4 percent in March 2019 as compared to an increase of 0.2 percent in the previous month and an increase of 0.2 percent in corresponding month of last year i.e. March 2018.

    Sensitive Price Indicator (SPI) inflation on YoY basis increased by 8.8 percent in March 2019 as compared to an increase of 6.5 percent a month earlier and a decrease of 1.8 percent in March 2018.

    On MoM basis, it increased by 1.6 percent as compared to an increase of 1.5 percent in the previous month and a decrease of 0.6 percent in corresponding month of last year i.e. March 2018.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 12.6 percent in March 2019 as compared to an increase of 11.0 percent a month earlier and an increase of 3.6 percent in March 2018.

    WPI inflation on MoM basis increased by 1.7 percent in March 2019 as compared to an increase of 0.9 percent a month earlier and an increase of 0.2 percent in corresponding month of last year i.e. March 2018.

  • Equity market falls by 295 points on policy rate hike

    Equity market falls by 295 points on policy rate hike

    KARACHI: The equity market fell by 295 points on Monday owing to hike in discount rate by 50 basis points.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,355 points as against 38,650 points showing a decline of 295 points.

    Analysts at Arif Habib Limited said that the market dipped today on the back of recent rate hike by SBP that increased the discount rate by 50bps to 10.75 percent.

    As an aftermath, the stock prices adjusted downwards although the decision of rate hike was in line with expectation.

    Exceptions to downward price adjustment were mainly banking sector, which has a positive correlation to interest rate hikes.

    Volume was led by UNITY right, which has been in the limelight since last week. Other than that the volumes were generally seen in Bank, Cement and Power Sectors.

    Sectors contributing to the performance include Power (+47 points), Miscellaneous (+22 points), Fertilizer (-83 points), E&P (-56 points), Banks (-56 points), Cement (-53 points), Pharma (-30 points).

    Volumes declined significantly from 137.7 million shares to 65.9 million shares (-52 percent DoD). Average traded value also declined by 46 percent to reach US$ 19.9 million as against US$ 36.8 million.

    Stocks that contributed significantly to the volumes include UNITYR1, BOP, SNGP, KEL and MLCF, which formed 47 percent of total volumes.

    Stocks that contributed positively include HUBC (+72 points), PSEL (+23 points), BAFL (+7 points), EFUG (+7 points), and SYS (+6 points). Stocks that contributed negatively include PPL (-35 points), LUCK (-28 points), ENGRO (-28 points), BAHL (-25 points) and DAWH (-22 points).


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  • Rupee eases by 11 paisas against dollar

    Rupee eases by 11 paisas against dollar

    KARACHI: The rupee depreciated 11 paisas against dollar on Monday owing to hike in policy rate and petroleum products.

    The rupee ended Rs140.89 to the dollar from last Friday’s close of Rs140.78 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs140.80 and Rs140.85.

    The market recorded day high of Rs140.90 and low of Rs140.85 and closed at Rs140.89.

    The exchange rate in open market was also changed with depreciation of the local currency.

    The buying and selling of dollar was recorded at Rs142.00/Rs142.70 to the dollar from last Saturday’s closing of Rs142.00/Rs142.50 in cash ready market.

  • Goods transporters reject increase in POL product prices

    Goods transporters reject increase in POL product prices

    Goods transporters in Karachi have expressed strong opposition to the recent hike in petroleum product prices, announcing a corresponding 10 percent increase in transportation fares.

    (more…)
  • SBP issues regulations for electronic money institutions

    SBP issues regulations for electronic money institutions

    KARACHI: State Bank of Pakistan (SBP) on Monday issued regulations for electronic money institutions in order to promote financial inclusion in the country.

    In a statement, the central bank said that in order to foster innovation in the payments industry and promote financial inclusion in the country, it has been decided to license non-banking entities as E-Money Institutions (EMIs) as per the notified regulations under the powers conferred on SBP by Payment Systems and Electronic Fund Transfers Act, 2007.

    These regulations will remove entry barriers and provide level playing field to EMIs in payment’s arena which will eventually lead to the development of payments ecosystem in Pakistan.

    SBP therefore expects that the prospective EMIs shall offer convenient, cost effective, interoperable and secure digital payment products and services to end users in the country.

    These Regulations shall come into force with immediate effect.

    The objectives of the regulations are included:

    I. To provide regulatory framework for EMIs desirous of offering innovative payment services to the general public.

    II. To prescribe minimum service standards and requirements for EMIs to ensure delivery of payment services in a safe, sound and cost effective manner.

    III. To outline the permissible activities that can be carried out by an EMI and its agents’ network.

    IV. To provide a baseline for protection of EMI’s customers.

    V. To achieve the SBP’s objective of digital payments and financial inclusion.

    The SBP said that Payment Systems and Electronic Funds Transfer Act, 2007 defines e-money as monetary value stored on an electronic device or payment instrument issued on receipt of funds and accepted as a means of payment by entities other than issuer.

    E-money globally is widely used for making retail payments in an economy and has played a crucial role in digitizing different types of payments in various countries.

    Electronic Money Institutions (EMIs) are entities that offer innovative, user-friendly and cost effective low value digital payment prepaid instruments like wallets, prepaid cards, and contactless payment instruments including wearables.

    Globally, these innovative payment instruments have been instrumental in promoting cashless payments like merchant checkouts, e-commerce, transportation and toll payments etc.

    Traditionally, payment instruments in Pakistan are issued by banks without participation of non-banking entities.

    New technological innovations are now enabling non-banking sector to deliver innovative and efficient payment services to consumers at much lower cost.

    These regulations are primarily aimed at removing entry barriers for non-banking entities by providing them a guiding as well as an enabling regulatory framework for the establishment and operations of EMIs in Pakistan.

    These regulations also address potential risks in order to ensure consumer protection in line with legal framework of the country while promoting digital payments and financial inclusion.

  • FBR’s tax collection gap widens by Rs295bn; needs Rs1,698bn in three months to meet target

    FBR’s tax collection gap widens by Rs295bn; needs Rs1,698bn in three months to meet target

    ISLAMABAD: The deficit in tax collection has soared by 295 billion in first nine month of current fiscal year making it an impossible task for Federal Board of Revenue (FBR) to achieve Rs4,398 billion target for current fiscal year.

    The revenue collection for July – March 2019 was stood at Rs2,700 billion as against the target of Rs2,995 billion.

    The widening of tax gap posed a serious trouble for the government in meeting development expenditures and curtailing fiscal deficit.

    The State Bank of Pakistan (SBP) has already projected the fiscal deficit at 6 to 7 percent as against actual target of 4.9 percent of the GDP for the fiscal year 2018/2019.

    According to provisional collection the FBR collected Rs358 billion. The collection target for the month of March was Rs432 billion.

    FBR sources said that the collection of advance tax witnessed steep fall due to shrinking profitability of the corporate sector.

    The corporate sector pay advance income tax in March on the assumption of their income in the three quarters.

    As per the latest development in the revenue collection the FBR will required Rs1,698 billion during next three months in order to achieve the revenue collection target of Rs4,398 billion.

  • Rupee falls by 7 paisas in early trade

    Rupee falls by 7 paisas in early trade

    KARACHI: The Pak Rupee fell by seven paisas against dollar in early trade on Monday.

    The dollar is being traded at Rs140.85 in interbank foreign exchange market. The foreign currency market was ended at Rs140.78 on last Friday.

    Currency experts said the rupee was sliding due to ongoing discussions with IMF for new loan program.

  • Sales Tax Act 1990: 17 percent applicable on taxable supplies

    Sales Tax Act 1990: 17 percent applicable on taxable supplies

    KARACHI: A normal sales tax rate at 17 percent is applicable on taxable supplies made by registered person.


    Federal Board of Revenue (FBR) issued recently the updated Sales Tax Act, 1990 under which its Section 3 explained the scope of tax.


    Section 3: Scope of tax


    Sub-Section (1): Subject to the provisions of this Act, there shall be charged, levied and paid a tax known as sales tax at the rate of seventeen percent of the value of–


    (a) taxable supplies made by a registered person in the course or furtherance of any taxable activity carried on by him; and


    (b) goods imported into Pakistan, irrespective of their final destination in territories of Pakistan.


    Sub-Section (1A): Subject to the provision of sub section (6) of section 8 or any notification issued thereunder, where taxable supplies are made to a person who has not obtained registration number, there shall be charged, levied and paid a further tax at the rate of three percent of the value In addition to the rate specified in sub sections (1), (1B), (2), (5), (6) and section 4 provided that the Federal Govt. may, by notification in the official Gazette, specify the taxable supplies in respect of which the further tax shall not be charged, levied and paid.


    Sub-Section (1B): The Board may, by notification in the Official Gazette, in lieu of levying and collecting tax under sub section (1) on taxable supplies, levy and collect tax –


    (a) On the production capacity of plants, machinery, undertaking, establishments or installation producing on manufacturing such goods; or


    (b) On fixed basis, as it may deem fit, from any person who is in a position to collect such tax due to the nature of the business.


    Sub-Section (2): Notwithstanding the provisions of sub-section (1): –


    (a) taxable supplies specified in the Third Schedule shall be charged to tax at the rate of seventeen per cent of the retail price or in case such supplies are also specified in the Eighth Schedule, at the rates specified therein and the retail price thereof, along with the amount of sales tax shall be legibly, prominently and indelibly printed or embossed by the manufacturer on each article, packet, container, package, cover or label, as the case may be;
    Provided that the Federal Government, may, by notification in the official Gazette, exclude any taxable supply from the said Schedule or include any taxable supply therein;


    (aa) goods specified in the Eighth schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein; and


    (b) the Federal Government may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, declare that in respect of any taxable goods, the tax shall be charged, collected and paid in such manner and at such higher or lower rate or rates as may be specified in the said notification.


    Sub-Section (3): The liability to pay the tax shall be,-


    (a) in the case of supply of goods, of the person making the supply, and


    (b) in the case of goods imported into Pakistan, of the person importing the goods.

  • Prices of Petrol, HSD increased by Rs6/liter

    Prices of Petrol, HSD increased by Rs6/liter

    ISLAMABAD: The government has increased prices of petroleum products up to Rs6 per liter for the month of April 2019.

    The prices of petrol and diesel have been increased by Rs6 per liter and prices of kerosene oil and light diesel oil by Rs3 per liter.

    The price of diesel prices has been inflated from Rs111.43 to Rs117. 43 per litre, petrol from Rs92.89 to 98.89 per litre, LDO from Rs77. 54 to Rs80.54 per litre and kerosene from Rs86. 31 to Rs89.31 per litre.

    Oil and Gas Regulatory Authority (OGRA) in its summary had proposed that the price of high speed diesel be increased by Rs11. 17 per litre (10 per cent) and petrol by Rs11.98 per litre (12.8 per cent) for April.

  • FBR establishes directorate for taking action against undeclared offshore assets

    FBR establishes directorate for taking action against undeclared offshore assets

    ISLAMABAD: Federal Board of Revenue (FBR) has established Directorate General of International Tax Operations to initiate legal proceedings in undeclared offshore assets by Pakistanis.

    The FBR issued notification to set up the directorate on March 29, 2019. The directorate will have head office in Islamabad and its subordinate offices will be at Lahore, Peshawar, Multan, Karachi, Quetta.

    The directorate was introduced through Finance Supplementary (Second Amendment) Act, 2019 by inserting Section 230E to Income Tax Ordinance, 2001.

    The functions and powers of the directorate general of international tax operations would be:

    a. receive and send information from other jurisdictions under spontaneous, automatic and on demand exchange of information under exchange of information agreements.

    b. Levy and recover tax by passing an assessment order under section 123(1A) in case of undeclared offshore assets and incomes.

    c. Receive, transmit and exchange country by country reports of the jurisdictions that are parties to international agreements with Pakistan.

    d. Conduct transfer pricing audit in cases selected for such audit by the directorate genera of international tax operations.