Pkrevenue.com

Month: January 2020

  • FDI data collected on fiscal year basis: Finance Division

    FDI data collected on fiscal year basis: Finance Division

    ISLAMABAD: The Finance Division on Friday clarified news reports and said that the data of Foreign Direct Investment (FDI) collected on fiscal year basis not on calendar year basis.

    Finance Division has described as factually incorrect and misleading a news item published in a section of the press claiming that the foreign direct investment flows into Pakistan had dropped by 20 per cent in 2019.

    In an official statement, the Finance Division has clarified that a news report published in a segment of the press has highlighted that Foreign Direct Investment (FDI) inflows into Pakistan declined by 20 percent to $1.9 billion in 2019 (calendar year) against $2.4 billion in 2018.

    In this context, it is clarified that FDI data is collected on the basis of fiscal years, whereas the quoted figure is taken on calendar year basis.

    Furthermore, on fiscal year basis, FDI has increased by 68.3 percent during July-December 2019 as compared to same period of last year (from $0.797 billion to $1.341 billion)

  • Stock market gains 126 points in mixed trading

    Stock market gains 126 points in mixed trading

    KARACHI: The stock market gained 126 points on Friday amid mixed trading sessions. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,633 points as against 42,507 points showing an increase of 126 points (+0.3 percent DoD).

    Analysts at Arif Habib Limited said that the market recovered some losses made earlier during the week and closed the session +126.08 points.

    During the session, the index swayed from -256 points to +200 points.

    Cement sector gained both in volume and value, with KOHC hitting upper circuit and healthy buying activity observed in Cement heavy weights including LUCK, DGKC and MLCF.

    E&P sector also showed some signs of recovery with PPL crossing recent highs.

    Similarly, positive move was observed in Refineries, which saw ATRL and NRL closing at upper circuits. Cement Sector led the volumes with 36.5 million shares, followed by Food (18.8 million) and Banks (18.7 million).

    Among scrips, MLCF registered trading volume of 17.3 million shares, followed by ASC (14 million) and HASCOL (13.9 million).

    Sectors contributing to the performance include Cement (+41 points), E&P (+29 points), Power (+19 points), Textile (+18 points) and Banks (+15 points).

    Volumes declined back from 230.8 million shares to 173.0 million shares (-25 percent DoD). Average traded value also declined by 31 percent to reach US$ 43.5 million as against US$ 63.2 million.

    Stocks that contributed significantly to the volumes include MLCF, ASCR, HASCOL, UNITY and AVN, which formed 36 percent of total volumes.

    Stocks that contributed positively include PPL (+42 points), BAHL (+17 points), LUCK (+16 points), HUBC (+15 points) and MCB (+15 points). Stocks that contributed negatively include POL (-21 points), HBL (-15 points), SHFA (-12 points), BAFL (-9 points), and PMPK (-8 points).

  • Rupee gains five paisas on inflows

    Rupee gains five paisas on inflows

    KARACHI: The Pak Rupee made gain five paisas against dollar on Friday owing to inflows of export and remittances.

    The rupee ended Rs154.57 to the dollar from previous day’s closing of Rs154.62 in interbank foreign exchange market.

    Currency dealers said that the market witnessed supply of dollars during the day which helped the rupee to make gain.

    The foreign currency market was initiated in the range of Rs154.65 and Rs154.68. The market recorded day high of Rs154.65 and low of Rs154.56 and closed at Rs154.57.

    The exchange rate in open market witnessed stable rupee value. The buying and selling of dollar was recorded at Rs154.60/Rs154.90, the same previous day’s closing, in cash ready market.

  • OGDCL announces gas discovery in Sindh

    OGDCL announces gas discovery in Sindh

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Friday announced discovery of gas in the exploratory well located in Khairpur Sindh.

    In an information shared with Pakistan Stock Exchange (PSX), the company announced that the joint venture of Ranipur Block comprising OGDCL as operator (95 percent), Government Holdings Private Limited (GHPL) (2.5 percent and Sindh Energy Holding Company (Private) Limited (SEHCL) (2.5 percent had discovered gas and condensate in the exploratory well Metlo 01, which is located in District Khairpur, Sindh Province.

    The OGDCL said that the Metlo-1 was spud on November 17, 2019 and reach a depth of 1504 meters inside Upper Goru Formation. Based on wireline logs, drill stem test (DST) was conducted in Ranikot Formation and Sui Main Limestone.

    The well has tested 1.85 million cubit feet per day of gas, 6 barrels per day of condensate and 38 barrels of water through 32/64” choke at well head flowing pressure of 285 pounds per square inch (Psi) from lower Ranikot Formation.

    The discovery of Metlo-1 is the result of aggressive exploration strategy adopted by the company. “This discovery will add to the hydrocarbons reserves of OGDCL, GHPL, SEHCL and of the country and will contribute in reducing the gap between supply and demand of oil and gas in the country through the exploitation of indigenous resources.

  • SRB suspends sales tax registration of Arabia Sea Country Club

    SRB suspends sales tax registration of Arabia Sea Country Club

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of Arabian Sea Country Club for tax fraud.

    In a notice for suspension of registration of M/s. Arabia Sea Country Club, the SRB said that the taxpayer had collected the amount of tax on services provided but did not deposit to the provincial exchequer.

    The SRB said that the taxpayer provided services to M/s. Aisha Steel Mills Limited, M/s. Master Motors, M/s. Novartis Pharma (Pakistan) Limited, M/s. Naveena Steel Mills (Pvt) Limited, M/s. Yamaha Motor Pakistan (Pvt) Limited, M/s. L’oreal Pakistan Pvt Limited amounting to Rs11,615,885 involving Sindh sales tax of Rs1,510,067 for the tax period January 2019 to October 2019.

    “It is inform you that the aforesaid act of non-payment/short payment of Sindh sales tax is covered under the ‘tax fraud’ as defined under the provision of Section 2(94) of the Act, 2011.”

    The SRB has given deadline of January 28, 2020 to the taxpayer:

    To discharge all the due Sindh sales tax liability along with default surcharge; and

    To e-file the true and correct monthly Sales Tax return for the said tax periods.

    “In case of non-satisfactory response or failure to take remedial measures as suggested above on or before January 28, 2020, the case shall be processed for cancellation of registration.”

  • FBR not to compromise integrity of automated refund system

    FBR not to compromise integrity of automated refund system

    KARACHI: Federal Board of Revenue (FBR) has told the legislators that it will not compromise the integrity of automated sales tax refund system despite pressures from various quarters.

    The FBR made a presentation before the standing committee of National Assembly on Finance, Revenue and Economic Affairs on Thursday. The officials of Large Taxpayers Unit (LTU) Karachi explained in detail about the newly launched Fully Automated Sales Tax e-Refund (FASTER).

    The standing committee had asked the FBR to explain the automated sales tax refund system following hue and cry from the business community that their refunds under the newly launched system were stuck up and they were facing liquidity problems.

    The FBR officials informed the standing committee the automated system was fully transparent and all doors had been closed for issuance of refunds on fake and flying invoices.

    It was informed that in the last budget the zero rating of sales tax was abolished which was related to five export oriented sectors.

    After withdrawal of SRO 1125(I)/2011, the items in the SROs had become subject to normal sales tax at 17 percent on import and local supply.

    In this scenario all the inputs of exporters have become taxable which gave rise to refunds and liquidity issues.

    However, the government resolved the issue of sales tax refunds of exporters through introduction of FASTER system, which applied from July 01 onwards.

    It is informed that data provided in monthly returns is treated as data in support of refund claim and no separate electronic data is required. “The only requirement is filing of Annexure-H with 120 days of the filing of sales tax return.”

    After filing, the claim is routed through processing module FASTER. Refund claim data is verified by the system and Refund Payment Order (RPO) of the amount found admissible is generated.

    The FBR officials told that RPO was electronically communicated to the State Bank of Pakistan within 72 hours.

    The standing committee was informed that refund claims, which were not verified through validation checks, are processed under STARR.

    In order to resolve issues related to FASTER system, the FBR deputed focal persons in all field formations. Besides, chief automation and PRAL team is available through cell phones/ helpline to assist taxpayers.

    Further, filing date of annexure – H has been extended up to February 15, 2020.

    After the launch of FASTER system the issuance of refund payment registered unprecedented growth of 165 percent. According to the briefing the FBR released Rs36.82 billion during July 01- January 21 2019/2020 as compared with Rs13.9 billion in the corresponding period of the last fiscal year.

    The issuance of refunds by LTU Karachi registered phenomenal growth of 317 percent to Rs7.89 billion during July 01 – January 21 2019/2020 as compared with Rs1.89 billion in the corresponding period of the last year.

  • Income above Rs400,000 must file annual return: FBR

    Income above Rs400,000 must file annual return: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday said that individuals having income above Rs400,000 must file their income tax return for tax year 2019.

    The FBR issued advice as one week remaining for due date the filing income tax return for tax year 2019.

    The FBR urged people to file their annual income tax returns for documentation of economy and become active taxpayers.

    The revenue body said that salaried persons have been facilitated in return filing through ‘Tax Asaan’ smart phone application.

    It further said that the taxpayers have been facilitate in tax payment through ATM, Internet banking, debit card and direct debt from bank account.

    The FBR reminded that the last date for filing income tax return for tax year 2019 is January 31, 2019.

    The FBR has estimated around 2.77 million income tax returns for tax year 2019 to be filed by January 31, 2020.

    The FBR extended the date for filing income tax returns for tax year 2019 up to January 31, 2020 for all type of taxpayers.

    The FBR received around 2.17 million income tax returns for tax year 2019 by December 31, 2019.

    Syed Shabbar Zaidi, Chairman, FBR in his meeting with Finance Advisor Dr. Abdul Hafeez Shaikh disclosed that the FBR had received 2.17 million income tax returns for tax year 2019. While another 600,000 returns likely to be received by extended date i.e. January 31, 2020.

    The actual return filing date for tax year 2019 was September 30, 2019 for taxpayers including salaried persons, business individuals, persons falling in final tax regimes and companies having special tax year.

    While, for corporate taxpayers the last date for filing income tax returns was December 31, 2019.

    The FBR extended return filing date for other than corporate taxpayers around five times up to January 31, 2020. The FBR also extended the last date for corporate taxpayers up to January 31, 2020.

    The FBR is expecting around 3.5 million income tax returns for tax year 2019, which may be filed after due date but with payment of fine and penalties.

    Through Tenth Schedule of Income Tax Ordinance, 2001 the benefit of reduced withholding tax rates can only be availed by persons on the Active Taxpayers List (ATL).

    Those persons failed to file their income tax returns by due date and file their returns after due date without payment of fine will not be able to find their place on the ATL.

    The FBR will issue ATL for tax year 2019 on March 01, 2020.

    The number of income tax return has increased to 2.7 million for tax year 2018. The ATL for tax year 2018 will expire on February 29, 2020.

  • Insurance agents liable to pay 13% sales tax on services

    Insurance agents liable to pay 13% sales tax on services

    KARACHI: Sindh Revenue Board (SRB) has said that insurance agents are liable to pay 13 percent sales tax on services provided or rendered to their clients.

    The SRB issued updated working tariff for tax year 2020 and notified sales tax rate for various services. According to the working tariff the insurance agents are liable to pay 13 percent sales tax on services provided or rendered.

    However, a reduced rate of five percent is available to insurance agents with condition that input tax credit shall not be admissible.

    The SBR also notified sales tax rate for other services such as electric power transmission services liable to 13 percent sales tax on services.

    The provincial revenue body said that vehicle parking and valet services liable to 13 percent sales tax on services. However, a reduced rate of five percent also available with condition that input tax credit shall not be admissible.

    The rate of 13 percent sales tax applicable on: actuarial services; services of mining of mineral and allied and ancillary services in relation thereto; site preparation and clearance, excavation and earth moving and demolition services; waste collection and management services; warehouse or depots for storage or cold storages; supply chain management or distribution, including delivery) services.

    The services provided or rendered by cab aggregator and the services provided or rendered by the owners of drivers of the vehicles using the can aggregator services are liable to 13 percent sales tax. A reduced rate of 5 percent of such services is also available with condition that the input tax credit shall not be admissible.

  • Foreign exchange reserves increase to $18.271 billion

    Foreign exchange reserves increase to $18.271 billion

    Pakistan’s liquid foreign exchange reserves saw a notable increase of $148 million, reaching a total of $18.271 billion by the week ending January 17, 2020, according to a statement released by the State Bank of Pakistan (SBP) on Thursday.

    (more…)
  • Stock market ends down by 54 points in selling activities

    Stock market ends down by 54 points in selling activities

    KARACHI: The stock market declined by 54 points on Thursday amid selling pressure in various scrips. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,507 points as against 42,561 points showing a decline of 54 points.

    Analysts at Arif Habib Limited said that the market traded in the range of -122 points and +345 points, closing the session at -54 points.

    Cement Sector stocks performed well on the expectation of rate hike in North and meeting among Cement manufacturers, however, later during the session the expectation did not materialize which resulted in Cement stocks losing price gains made earlier.

    OGDC, which rebounded from yesterday’s lower circuit, maintained the position but closed red. Decline in international crude prices caused investors to stay cautious on Oil & Gas chain and therefore OMCs and Refineries faced selling pressure.

    Cement sector led the volumes with 79.3 million shares, followed by Technology (34.9 million) and Banks (21.8 million). Among scrips, MLCF realized volumes of 27.5 million, followed by WTL (16.5 million) and FCCL (13.6 million).

    Sectors contributing to the performance include Chemical (+14 points), Banks (+9 points), Tobacco (-32 points), Power (-14 points), Autos (-14 points), E&P (-11 points) and O&GMCs (-11 points).

    Volumes increased from 178 million shares to 230.8 million shares (+30 percent DoD). Average traded value increased by 5 percent to reach US$ 63.2 million as against US$ 60.1 million.

    Stocks that contributed significantly to the volumes include MLCF, WTL, FCCL, DGKC and BOP, which formed 36 percent of total volumes.

    Stocks that contributed positively include HBL (+24 points), COLG (+17 points), EFERT (+9 points), BAFL (+7 points) and SRVI (+7 points). Stocks that contributed negatively include PAKT (-32 points), LUCK (-14 points), HUBC (-13 points), OGDC (-12 points), and HMB (-11 points).