Day: February 10, 2020

‘Business Optimism Index’ launched: Business optimistic on situation to improve

KARACHI: Dun & Bradstreet has launched its World Renowned ‘Business Optimism Index’ for Pakistan according to which Businesses in Pakistan are overall optimistic about their outlook for Q1, 2020.

The composite Business Optimism Score stands at 144.6 points compared to a benchmark neutral value of 100 points.

As per the report, Large Companies are relatively more optimistic than Small and Medium Enterprises (SMEs), as the composite score for large companies stands at 149.5 points compared to 137.3 points for SMEs. Additionally, companies in the Services Sector are more optimistic than Trading and Manufacturing Sectors.

Dun & Bradstreet’s ‘Business Optimism Index’ was initiated in the early 1900’s has now made its way to Pakistan. This report will be published every quarter and aims to measure the pulse of the business community, and serve as a tool to assess the business outlook in Pakistan.

The responses for the business situation reflect respondents’ outlook in regards to the current business situation (Q4, 2019) and forecast business situation (Q1, 2020).

Based on the results, respondents are more optimistic with respect to forecast business situation vis-a-vis to the current business situation. About 66 percent of the respondents expect business situation to be good in the upcoming quarter compared to 42 percent of respondents in the current quarter.

About 9 percent of the respondents expect their business situation to be poor in the upcoming quarter, compared to 16 percent in the current quarter which is a positive indicator for businesses.

Key business challenges highlight issues perceived by businesses at the end of Q4, 2019 that have impacted near term business growth and development.

According to the results, 42 percent of the respondents consider Government fees / taxes as one of the major challenges followed by competition (34 percent), and unfavorable business regulations (30 percent).

About 40 percent of respondents also reported other factors to be major challenges amongst which exchange rate fluctuation (7 percent), political instability (6 percent) and economic slowdown (3 percent) were most prominent.

February 10, 2020
ECC bans sugar export to control prices

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday banned the export of sugar to maintain the prices in domestic market.
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February 10, 2020
FBR notifies transfer, postings of BS-20 IRS officers

ISLAMABAD: Federal Board of Revenue (FBR) on Monday notified transfers and postings of senior officers of Inland Revenue Service (IRS) of BS-20 with immediate effect and until further orders.

The FBR notified transfers and postings of following officers:

01. Rizwan Ahmed Urfi (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (PAC-DT) Federal Board of Revenue (Hq), Islamabad from the post of Chief, Federal Board of Revenue (Hq), Islamabad.

02. Sheikh Zahid Masood (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Enforcement) (IR-Operations Wing) Federal Board of Revenue (Hq), Islamabad from the post of Chief, Federal Board of Revenue (Hq), Islamabad.

03. Muhammad Asghar Khan Niazi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Bahawalpur Zone) Regional Tax Office, Bahawalpur from the post of Commissioner-IR, (Rahimyar Khan Zone) Regional Tax Office, Bahawalpur. The officer is assigned the additional charge of the post of CIR (Rahimyar Khan Zone), RTO, Bahawalpur till the posting of a regular incumbent.

04. Masood Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Legal Wing) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner-IR, (Bahawalpur Zone) Regional Tax Office, Bahawalpur.

05. Mohy ud Din Ismail (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (ST &FE) (IR-Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Chief, (Legal) Federal Board of Revenue (Hq), Islamabad.

The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

February 10, 2020
MCB Bank submits SOQ for SME Bank privatization

KARACHI: MCB Bank Limited on Monday submitted a statement of qualification (SOQ) for participating in privatization of SME Bank Limited.

In a notice to Pakistan Stock Exchange (PSX), the MCB Bank said that Privatization Commission, government of Pakistan advertized in December 2019 the privatization of SME Bank Limited via sale of 93.88 percent shares therein to strategic buyer.

Accordingly, MCB Bank Limited submitted an expression of interest to the Privatization Commission on December 16, 2019, and consequently received a request for statement of qualification (RSOQ) issued by the Privatization Commission in respect of the proposed transaction.

In response to the RSOQ, MCB Bank Limited is required to submit a Statement of Qualification (SOQ) to the Privatization Commission by February 10, 2020.

As per the stated requirement, MCB Bank Limited has submitted the SOQ today (February 10, 2020). MCB Bank Limited said that it would keep updated the market participants about any further developments as and when they occur.

February 10, 2020
Stock market plunges by 847 pts on political uncertainty

KARACHI: The stock market plunged by 847 points on Monday owing to political uncertainty and high inflation numbers.
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February 10, 2020
Rupee falls by two paisas on import payment demand

KARACHI: The Pak Rupee fell by two paisas against dollar on Monday owing to higher demand for import and corporate payments, dealers said.

The rupee ended Rs154.43 to the dollar from last Friday’s closing of Rs154.41 in interbank foreign exchange market.

The dealers said that the rupee was depreciated due to higher demand from importers and corporate buyers. They said that the earlier in the day the local unit fell to Rs154.48 however inflows of export receipts and remittances helped to make recovery.

The foreign currency market was initiated in the range of Rs154.45 and Rs154.50. The market recorded day high of Rs154.48 and low of Rs154.43 and closed on the same level.

The exchange rate in open market witnessed no change in rupee value. The buying and selling of the dollar was recorded at Rs154.30/Rs154.60, the same closing level of last Friday, in cash ready market.

February 10, 2020
FBR to impose penalty on withholding agent for not submitting taxpayers’ information

ISLAMABAD: Federal Board of Revenue (FBR) will impose penalty on withholding agents for failure in submitting withholding statement or information of taxpayers for the period July – December 2019.

The last day for filing withholding statement electronically was January 31, 2020. Most of the withholding agents had filed the statements as per requirement. However, some of them are still non-compliant and will be liable to fine and penalty, FBR sources said on Monday.

As per Section 182 of Income Tax Ordinance, 2001, where any person fails to furnish a statement as required under Section 115, 165, 165A of 165B within the due date. “Such person shall pay a penalty of Rs5,000 if the person had already paid the tax collected or withheld by him within the due date for payment and the statement is filed within 90 days from the due date for filing the statement and, in all other cases, a penalty of Rs2,500 for each day of default from the due date subject to a minimum penalty of Rs10,000.”

The FBR officials said that under Section 165 of the Income Tax Ordinance, 2001, every person collecting tax or deducting tax from a payment shall furnish to the commission a biannual statement in the prescribed form setting out:

(a) the name, Computerized National Identity Card Number, National Tax Number and address of each person from whom tax has been collected under Division II of this Part or Chapter XII or the Tenth Schedule or to whom payments have been made from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year

(b) the total amount of payments made to a person from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year

(c) the total amount of tax collected from a person under Division II of this Part or Chapter XII or the Tenth Schedule or deducted from payments made to a person under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year; and

(d) such other particulars as may be prescribed:

Provided that every person as provided in sub-section (1) shall be required to file withholding statement even where no withholding tax is collected or deducted during the period.

Explanation.— For the removal of doubt, it is clarified that this sub-section overrides all conflicting provisions contained in the Protection of Economic Reforms Act, 1992 (XII of 1992), the Banking Companies Ordinance, 1962 (LVII of 1962), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject, in so far as divulgence of information under section 165 is concerned.

(2) Every prescribed person collecting tax under Division II of this Part or Chapter Xll or the Tenth Schedule or deducting tax under Division III of this Part of Chapter Xll or the Tenth Schedule shall furnish statements under sub-section (l) as per the following schedule, namely:-

(a) in respect of the half-year ending on the 30th June, on or before the 31st day of July; and

(b) in respect of the half-year ending on the 31st December, on or before the 31st day of January.

(2A) Any person who, having furnished statement under sub-section (1) or sub-section (2), discovers any omission or wrong statement therein, may file a revised statement within sixty days of filing of statement under sub-section (1) or sub-section (2), as the case may be.

(2B) Notwithstanding anything contained in this section, the Commissioner as he deems lit may by notice in writing require any person, collecting or deducting tax under this Ordinance, to furnish a statement for any period specified in the notice within such period of time as may be specified in the notice.

(3) Board may prescribe a statement requiring any person to furnish information in respect of any transactions in the prescribed form and verified in the prescribed manner.

(4) A person required to furnish a statement under sub-section (1), may apply in writing, to the Commissioner for an extension of time to furnish the statement after the due date and the Commissioner if satisfied that a reasonable cause exists for non-furnishing of the statement by the due date may, by an order in writing, grant the applicant an extension of time to furnish the statement.

(5) The Board may make rules relating to electronic furnishing of statements under this section including,-

(a) mandatory electronic filing of statements; and

(b) determination of eligibility of the data of such statements and e-intermediaries, etc.

(6) Every person deducting tax from payment under section 149 shall furnish to the Commissioner an annual statement in the prescribed form and manner.

February 10, 2020
NCCPL directs verification of stock investors through biometric

KARACHI: National Clearing Company of Pakistan Limited (NCCPL) has issued guidelines to register / verify all investors of stock market through biometric system.

The NCCPL on Monday issued communication to Pakistan Stock Exchange (PSX) to direct all authorized intermediaries (AI) and clearing members to register existing customers in Centralized Know Your Customer (CKO).

The NCCPL said that in pursuance of provisions stipulated under clause 9.1 (x) of CKO Regulations 2017 and NCCPL Regulations clause 5.11, Authorized Intermediaries (AI) are required to register their existing Customers, in the KYC Database to obtain Unique KYC Number (UKN) and tagging of such UKNs with the relevant Authorized Intermediary within the time period notified by the CKO.

In view of above, all Authorized Intermediaries are hereby notified to register their existing Customers (i.e existing customers registered through NCSS UIN database before June 17, 2019) in the KYC Database and obtain UKN latest by May 31 2020.

Further, Clearing Members still not yet admitted as AI shall be required to get them registered as AI and also required to register their customers in CKO by May 31, 2020.

For the purpose of facilitating the Authorized Intermediaries, step wise key elements of the existing Customer registration process under CKO have been briefly explained below;

1. AI shall be required to carry out Biometric Verification of the Customer (Applicable on individual customer only).

2. AI is required to submit online KYC form of the existing customer via KYC Information System. Moreover, hard copy of KYC Form as prescribed under Annexure II, III and IV of the CKO Regulations, 2017 in signed form shall be required for all Types of Customers.

3. In case of joint account holder(s), the AI shall be required to carry out Biometric Verification and proceed with KYC Application Form for each account holder separately.

4. After submission of KYC Application Form electronically in KIS, AI will be required to submit hard copy of original KYC Application Form and Supporting Documents to CKO within 5 working days as per existing practice. The supporting documents may also be submitted through the upload functionality made available in the KIS.

5. CKO will initiate necessary processing and complete its verification within 10 working days from the date of receipt of KYC Application Form along with all the required supporting documents.

6. Upon such verification, CKO will approve KYC Application Form in KIS and Unique KYC Number (UKN) will automatically be generated for such Customer in KIS.

7. After issuance of UKN, CKO will obtain confirmation from corporate Customer, foreign individuals and foreign corporate Customers for the issuance of UKN within 15 working days in accordance with the Regulations.

8. In case of any discrepancy found in KYC form, AI will be required to remove it within 10 working days.

9. Customers registered with multiple AIs will be required to complete their KYC process with all AIs one by one. If their KYC process is not completed with the AI through whom the process was first initiated, such customers shall not be allowed to initiate their KYC process with the other AIs.

The NCCPL warned that failure to comply the above mentioned clause within stipulated time shall lead to necessary action in accordance with clause 9.1 (v) of CKO Regulations, 2017 and clause 5.11 of NCCPL Regulations whereby UIN tagging of the Customer with such Authorized Intermediary/Clearing Member shall be blocked and trading through such client code shall be restricted.

However, pending transactions of such customers will be settled through respective Securities Broker in NCSS. Moreover, squaring-up of open positions in all Markets including Leveraged Markets and selling of Securities held in the sub-account(s) will be allowed.

For complete details please refer clause 5.11 of NCCPL Regulations and clause 9.1 of CKO Regulations, 2017.

For any further queries or concerns, please feel free to contact the Customer Support Services of your respective locations.

February 10, 2020
Cabinet to announce major relief in prices

ISLAMABAD: The federal cabinet in its meeting scheduled for Tuesday, February 12, 2020 will announce major relief in prices of basic food items, Prime Minister Imran Khan announced on Sunday.

The prime minister in its tweet message said that the government would come up with various measures to reduce the prices of basic food items in the upcoming federal cabinet meeting scheduled on Tuesday.

“I understand the difficulties ordinary people including salaried class are confronting and have decided, come what may, my government will be announcing various measures that will be taken to reduce prices of basic food items for the common man in Cabinet on Tuesday,” the prime minister tweeted.

He said at the same time all the relevant government agencies had launched an in-depth probe into the flour and sugar price hikes.

“The nation should rest assured that all those responsible will be held accountable and penalized,” the prime minister remarked.

February 10, 2020
Criminal proceedings to be initiated for taking bribe

KARACHI: Federal Board of Revenue (FBR) is determined to eliminate corrupt practices in the official matters in Inland Revenue and Pakistan Customs and decided to take action against officials taking bribe or financial benefits for giving favor someone.

FBR officials told PkRevenue.com that vigilance teams of tax authorities were observing the day to day affairs of field offices and also examining complaints against tax officials regarding their workings.

In order to effectively check misuse of authority to gain financial benefit, new provisions have been introduced through Finance Act, 2019 in all the relevant statutes to prescribe rules for initiating criminal proceedings against officers and officials of the FBR who deliberately commit acts or fail to act for personal benefits.

Similar action would also be taken against persons who offer bribes or other financial benefits to the tax employees, the sources said.

The laws have been introduced through Section 156A Customs Act, 1969, Section 33A Sales Tax Act, 1990 and Section 216A Income Tax Ordinance, 2001 for taking against corrupt practices of officials.

Under Section 216A of Income Tax Ordinance, Proceedings against authority and persons shall be taken as under.

(1) Subject to section 227, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in section 207 and officer of the Directorates General mentioned in Part II and Part III of Chapter XI including any person subordinate to the aforesaid authorities or officers of the

Directorates General who willfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

(2) Where proceedings under sub-section (1) have been initiated against the authority or officer or official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the person referred to in sub-section (1).

(3) The proceedings under this section shall be without prejudice to any other liability that the authority or officer or official or the person may incur under any other law for the time being in force.

February 10, 2020