Pkrevenue.com

Day: February 19, 2020

  • Finance ministry may resolve taxation issues of automotive industry

    Finance ministry may resolve taxation issues of automotive industry

    KARACHI: A standing committee of the National Assembly has assured that finance ministry to convene an exclusive meeting for resolving taxation issues of automotive industry.

    The National Assembly standing committee paid its visit to Pak Suzuki Motors under the chairmanship of Sajid Hussain Turi on Wednesday.

    The Committee informed that an exclusive meeting may be convened with FBR, and Ministry of Finance to resolve the problems of Additional Customs Duty, Federal Excise Duty, Additional Sales Tax, shortly.

    During the visit the management of Pak Suzuki Motors welcomed the Members and senior officers of GOP, at Suzuki Head office.

    The committee witnessed the manufacturing of different vehicles in the plant under the supervision of well experienced team of Pakistani and Japanese Suzuki engineers and workers.

    The committee members expressed their well wishes for the Improvement of Pak Suzuki plant which was established in 1992, after visiting the plant.

    The Managing Director, Pak Suzuki Motors, Pakistan warmly welcomed the Committee. Shafiq Shaikh, head of Public Relations and official spokesperson briefed the Committee about the historical background of the institution.

    He appraised the Committee with regard to different Cars launched by Suzuki Motors time to time in Pakistan, including some imported vehicles and newly introduced cars.

    The Managing Director, responded the questions raised by the Members regarding quality of products as compared to imported vehicles, the Committee expressed its satisfaction in this regard.

    Shafiq Shaikh explained the causes of increase in prices. He said high mark up rates of Banks loans, over burden of taxation, several additional duties, rupee devaluation, increase in fixed costs / utilities, high trend of inflation and non implementation on Automotive Development Policy(ADP) 2016-21 were the major reason of low production in the automotive sector, which also caused the price fluctuation in the market. Additional Secretary, Ministry of Industries informed that taxation matters were taken up earlier with Ministry of Finance and Revenue but they didn’t respond properly in that regard in last financial year.

    The Committee appreciated the role of Pak Suzuki Motors , Management and appreciated Harano, MD and Shaikh for providing the good quality/ standards products in Pakistan and launching of new models of cars and Motorbikes.

    Several members along with senior officials from ministry of industries, EDB and PSM attended the meeting.

  • IR officers to get information of importers through online customs system

    IR officers to get information of importers through online customs system

    KARACHI: The officers of Inland Revenue to access online system of customs clearance for monitoring of withholding tax collected from importers.

    The sources in Federal Board of Revenue (FBR) said that the Collectors of Customs of Sea Ports/Dry Ports are obliged to collect withholding tax on imports as per prescribed rates.

    In the case of goods/equipments imported through Airways, each Collector is obliged to collect tax at the time of clearance. Statements are to be filed on monthly basis.

    Tax under this section is collected from all, except from the imports by Government or exempt entities on the basis of certificate issued by a Commissioner.

    The sources said that Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) have access to WeBOC – the online customs clearance system – for accessing the documents filed by importers for determination of withholding tax at import stage.

    According to official documents for monitoring of withholding taxes, said that the authorized officer of each RTO should coordinate with Customs authorities, hold macro analysis of imports by Government, by other agencies, those treated exempt, and perform the system audit of imports, if required.

    The exemptions allowed to the imports made by exempt entities, the cases where Commissioner issued exemption certificates or SRO based exemptions were allowed; need to be examined to ascertain their admissibility.

    Categorization of imports, as provided in the online system should be strictly enforced by the Customs authorities. Concerned RTO should coordinate the matter accordingly.

    A centralized web based system has been introduced for issuance of certificates by the Commissioners and creation of a centralized Database.

    On-line verification of certificates by the concerned authorities will form part of it. This is necessary for ascertaining the genuineness of exemption certificates.
    PRAL should send the data received from NBP/Customs House to each RTO on daily basis.

    Tax collected as per Customs data and tax actually deposited in NBP and reported through CAP should be reconciled by PRAL on monthly basis with the RTO as part of normal exercise for reconciliation of revenue. Discrepancies should be reported to concerned Collector/ PRAL for reconciliation.

    A comprehensive scheme of allotting tax numbers is in place. All importers should essentially have a Tax Registration Number that is either NTN or Free Tax Number (FTN) and no import should be allowed without a valid tax number.

  • FBR bans leaves of officials for revenue collection

    FBR bans leaves of officials for revenue collection

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday banned all kind of leaves of its officers and officials with immediate effect in order to collect revenue in the remaining period of current fiscal year.

    In an official note issued by the FBR said that it had been observed with concern that field formations of the FBR were forwarding requests for grant of leaves, including ex-Pakistan leave despite the fact that the third quarter (January March) of the current fiscal year was nearing its completion and the entire tax machinery was required to accelerate its efforts to achieve the assigned budgetary targets through full devotion during the balance part of the current financial year.

    Therefore, it has been decided by the FBR that requests for grant of ex-Pakistan leaves may not be forwarded to the board by the respective heads of field formations till June 30, 2020, except, requests for Hajj, Umrah and Ziarat.

    “All such cases shall be processed in the Board after the beginning of next financial year,” the FBR said.

    “Similarly, local leaves/leaves of other kind may also not be granted liberally and may only be allowed in the light of special circumstances/hardship cases,” the FBR added.

  • Rupee falls by three paisas against dollar on corporate demand

    Rupee falls by three paisas against dollar on corporate demand

    KARACHI: The Pak Rupee fell by three paisas against dollar on Wednesday owing to demand from import and corporate buyers.

    The rupee ended Rs154.26 to the dollar from previous day’s closing of Rs154.23 in interbank foreign exchange market.

    The currency dealers said that dollar demand was higher because corporate buyers were active during the day. They said that many foreign corporate entities repatriate their incomes in shape of profit and dividends during results season.

    They said that importers were also seen active to purchase dollars for import payment for placing orders for commodities ahead of the holy month of Ramaza.

    The exchange rate in open market witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs154.10/Rs154.40, the same previous day’s closing, in cash ready market.

  • No link of toxic gas leakage with soybean cargo: Shipping agents

    No link of toxic gas leakage with soybean cargo: Shipping agents

    KARACHI: Shipping agents association has strongly condemned the linking of toxic gas leakage with soybean cargo.

    In a statement issued on Wednesday they said that the first casualty was reported hours before discharging of soybean at Karachi Port Trust.

    The statement issued by Ships Agents Association and Stevedoring Conference, stated: “We strongly condemn the rumors that are circulating targeting Soybean cargo which was being discharged partly at Karachi Port Trust at berth no. 10/11 east wharf.”

    “It may be noted that cargo was discharged only during night of Sunday February 16, 2020 (discharging commenced at 19:00 hours) and day of Monday February 17, 2020 (discharging stopped at about 22:00 hours).”

    Total of more than 600 labor worked on the ship none of them have been affected, it said.

    This cargo has been arriving at Karachi Port since the last many years and up till now not a single incident has occurred or has been reported.

    When the cargo was being discharged the wind direction was North East (NE) which means that it was towards Manora direction not towards land.

    “We wish to also point out that the first person who was hospitalized was before the ship commenced discharging,” it said.

    Ship Agents Association and Stevedoring Conference strongly advise that we should try and investigate the true nature of this incident considering the ground realities rather than getting involved in rumor mongering or speculation.

    This cargo is used to make edible oil i.e. it is a agricultural commodity and does not have chemicals in it.

    Plant Protection department visited the ship on February 18, 2020 with gas detectors to check for any harmful or toxic gases. “No gases were detected,” it said.

    “We strongly recommend that this ship should not be shifted and cargo should be discharged at Karachi Port only.

    “We confirm that we along with labor force of about 2 to 3,000 will stay at Karachi Port Trust berth during discharging operations. We must have the courage of our convictions,” according to the statement.

  • Stock market gains 399 points on positive vibes from FATF session

    Stock market gains 399 points on positive vibes from FATF session

    KARACHI: The stock exchange gained 399 points on Wednesday owing to positive vibes from ongoing FATF plenary session, analysts said.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,574 points as against 40,735 points showing an increase of 399 points.

    Analysts at Arif Habib Limited said that the market moved up today by 469 points during the session and closed +399 points.

    Trading volumes also improved over the day, which took cue from positive signals from ongoing FATF plenary session, expectation of tamed inflation for the month of February and higher crude oil prices that helped OGDC stage recovery from last week’s levels.

    The whole oil chain including E&P, OMCs and Refineries moved inline and showed buying interest from Investors. Similarly, Cement sector also saw buying activity that propped up stock prices, particularly DGKC, which traded near upper circuit.

    Cement sector led the trading volumes with 24.1 million shares, followed by Vanaspati (21.6 million) and Technology (15.6 million). Among scrips, UNITY topped with 13.4 million shares, followed by HBL (5.4 million) and PSO (4.6 million).

    Sectors contributing to the performance include Banks (+73 points), E&P (+73 points), Cement (+51 points), Fertilizer (+39 points) and Power (+32 points).

    Volumes improved from 91.6 million shares to 142.9 million shares (+56 percent DoD). Average traded value also increased by 33 percent to reach US$ 42.2 million as against US$ 31.6 million.

    Stocks that contributed significantly to the volumes include UNITY, HASCOL, DGKC, MLCF and TRG, which formed 38 percent of total volumes.

    Stocks that contributed positively include OGDC (+50 points), UBL (+42 points), HUBC (+34 points), MCB (+32 points) and PPL (+22 points). Stocks that contributed negatively include HBL (-32 points), JLICL (-6 points), BAHL (-6 points), INDU (-5 points), and AGP (-4 points).

  • Ufone celebrates 19 years of Pakistan operations

    Ufone celebrates 19 years of Pakistan operations

    ISLAMABAD: Ufone celebrated 19 years of successful operations in Pakistan with the entire UFamily at Ufone Tower, Islamabad and other offices across the country.

    During the anniversary celebrations, employees and management vowed to serve their customers with complete dedication and leave no stone unturned in delivering the best.

    President & CEO, PTCL-Ufone, Rashid Khan addressed the employees on this special occasion at the head office and congratulated them for taking the Pakistani telecom operator to new heights.

    He stated that it is because of the persistent efforts of the entire team that the organization has been able to show tremendous growth over the years and has established itself as a people friendly brand.

    It is the power of Ufone’s employees that keeps Ufone growing stronger every passing year and this theme was celebrated across Ufone offices in light of the anniversary celebrations.

    As a brand, Ufone has always focused on improving the life of every Pakistani by ensuring seamless connectivity. The customer first approach enables the organization to stand out and serve customers to the best of their abilities.

    The journey for Ufone began 19 years ago but despite challenges the company stood firm and continued serving its customers with the same zeal.

    Through these years, Ufone has introduced many innovative products and services which have not only become game changers in the telecom industry but have also empowered the common man.

    Ufone prides itself in connecting people from all over the country with ease and without any hassles.

    The company has been at the forefront of disseminating high quality services due to which it has become the preferred operator of Pakistanis across the country.

    According to recent PTA survey results, Ufone has the best voice services amongst all operators in Pakistan and is following the benchmark call connection time of 6.5 seconds.

    Now as Ufone enters its 20th year, the goals are bigger and ambitions are stronger. The company aspires to expand its outreach into every corner of Pakistan and is diligently working towards improving customer experience.

  • Indus Motors posts 67% decline in half-year profit

    Indus Motors posts 67% decline in half-year profit

    KARACHI: Indus Motors Company Limited on Wednesday declared massive 67 percent decline in net profit for six-month period ended December 31, 2019.

    According to financial results announced by Indus Motors, the company declared Rs2.3 billion profit after tax for the half year ended December 31, 2019 as compared with Rs6.91 billion in the corresponding half in the preceding year.

    The company declared earning per shares of Rs29.32 for the period as compared with EPS of Rs87.94 in the same period of the preceding year.

    The company declared gross profit of Rs3.76 billion for six month period, which fell by 62.6 percent when compared with Rs10.05 billion in the corresponding period of the last year.

    The expenses of the company increased by 14.28 percent to Rs1.52 billion for half year ended December 31, 2019 as compared with Rs1.33 billion in the same period of the last year.

    Revenue from contracts with customers has declined 44 percent to Rs42.77 billion during the period under review as compared with Rs76.44 billion in the corresponding period of the last fiscal year.

    Cost of sales also came down to Rs39 billion for the half year ended December 31, 2019 as c compared with Rs66.39 billion in the corresponding half of the last year.

  • UBL declares 26% growth in annual profit

    UBL declares 26% growth in annual profit

    KARACHI: United Bank Limited has declared 26 percent growth in annual profit for calendar year 2019 owing to significant increase in net mark-up income.

    According to financial results for calendar year 2019 released on Wednesday, the bank declared Rs19.13 billion after tax profit as compared with Rs15.22 billion profit in the preceding year.

    The bank also announced Rs15.63 as earning per share for the year as compared with EPS of 12.44 declared in the last year.

    The interest income of the bank registered 36 percent increase to Rs153.67 billion in calendar year 2019 as compared with Rs113.9 billion in the preceding year.

    However, total non-markup come at Rs61.77 billion in 2019 as compared with Rs56.23 billion in the last year.

    Total income of the bank after including non-mark up income rose to Rs83.45 billion in 2019 as compared with Rs81.25 billion in the preceding year.

    Operating expenses of the bank have increased to Rs40.21 billion in 2019 as compared with Rs38.82 billion in preceding year.

    The bank contributed income tax to the tune of Rs15.1 billion in the calendar year 2019 as compared with Rs9.74 billion in the preceding year.