Pkrevenue.com

Month: February 2020

  • No claim of compensation against customs officials

    No claim of compensation against customs officials

    KARACHI: An owner of goods has not entitled for claiming compensation from customs officials for any damage done during lawful detention.

    Customs officials said that in case any consignment is detained lawfully and during detention any damage occurred to the goods unintentionally then the owner of goods cannot claim compensation for such damage.

    They said that Section 216 of Customs Act, 1969 explained as:

    Section 216: No compensation for loss or injury except on proof of neglect or willful act

    No owner of goods shall be entitled to claim from any officer of customs compensation for the loss of such goods or for damage done to them at any time while they remain or are lawfully detained in any custom-house, customs area, wharf or landing place under the charge of any officer of custom, unless it be proved that such loss or damage was occasioned by gross negligence or willful act of such officer.

    Section 214: Remission of duty and payment of compensation to the owner in certain cases

    Where, on prosecution by the owner of any goods, an officer of customs is convicted of an offence connected with the removal of such goods from the warehouse without payment of duty, the whole of the duty on such goods shall be remitted, and, the Collector of Customs, shall, in accordance with the rules, pay to the owner due compensation for the damage caused to the owner by such offence.

    Section 215: Service of order, decision, etc

    Any order or decision passed or any summons or notice issued under this Act shall be served-

    (a) by tendering the order, decision, summons or notice or sending it by registered post or the courier service or by any other mode of transmission subject to acknowledgement receipt to the person for whom it is intended or to his agent; or

    (b) if the order, decision, summons or notice cannot be served in any manner provided in clause (a), by affixing it on the notice board of the custom-house; or

    (c) in case of electronic orders, decisions, notices or summons, when these have been sent to the recipient from the Customs Computerized System.

  • PBS rules out fudging in inflation figures

    PBS rules out fudging in inflation figures

    ISLAMABAD – The Pakistan Bureau of Statistics (PBS) categorically rejected allegations of fudging in inflation figures, addressing concerns raised in some sections of the electronic and print media.

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  • FBR organizes event to aware people about POS

    FBR organizes event to aware people about POS

    LAHORE: Federal Board of Revenue (FBR) has organized an event at Packages Mall, Lahore to create awareness among people about the Point of Sale (Linked Invoicing System) of FBR, a statement said on Saturday.

    The objective of this event was to apprise the people and the retailers about the installation and utility of Point of Sales (POS) machines at big retail outlets.

    Designated officers of FBR HQ led by Chief, Facilitation & Taxpayers Education Tehmina Aamer and included Secretary FATE Alam Zaib Khan and Secretary PR Adnan Akram Bajwa participated in the program.

    Lot of people showed keen interest in the activities of the program and appreciated the steps taken by FBR on Point of Sales (Linked Invoicing System).

    The people were informed as to how they could verify about their paid taxes through Tax Aasaan application. The retailers were convinced to get their businesses linked with Point of Sales Linked Invoicing system. The flyers containing information about Point of Sales and gifts were distributed to the people on the occasion.

  • Sensitive price inflation increases by 17.58pc

    Sensitive price inflation increases by 17.58pc

    KARACHI: The prices of essential items have registered 17.58 percent increase by week ended February 06, 2020 when compared with corresponding week last year, according to data released by Pakistan Bureau of Statistics (PBS).

    According to the data the combined Sensitive Price Indicator (SPI) increased by 17.58 percent by week ended February 06, 2020 as compared with the week ended February 07, 2019.

    As per the data the highest inflation for the period under review was recorded at 19.99 percent for the expenditure group ranging between Rs22.889 and Rs29.517.

    While the SPI was recorded at 16.18 percent for the period for expenditure group up to Rs17,732.

    The PBS computes the weekly SPI with base 2015-16= 100 covering 17 urban centers and 51 essential items for all expenditure groups.

  • FBR amends guidelines for performance allowance of BS-01-14 tax officials

    FBR amends guidelines for performance allowance of BS-01-14 tax officials

    KARACHI: Federal Board of Revenue (FBR) has delegated powers to head of respective field formations of approving performance allowance of BS-1 to BS-14.

    The FBR issued Circular No. 01/2020 dated February 06, 2020 and modified Guidelines for Performance Allowance -2015.

    The following amendment has been made to the Guidelines for Performance Allowance-2015 with immediate effect:

    “The power to process and finalize selection of officials of BS-1 to BS-14 for IJP Performance Allowance of officials is delegated to the respective heads of field formations. However, all the cases of litigation and arrears demand shall continue to be dealt at FBR HQ by the respective Wing.”

    The FBR said that in the light of above decision of the Board-In-Council’s meeting held on January 24, 2020, the IJP selection process and finalization of IJP cases with respect to BS-01-14 employees of field formations will rest with concerned field formation.

    Under the approval of respective head of field office such cases shall be processed and finalized keeping in view Guidelines for Performance Allowance -2015 under intimation to the board.

  • Market to remain in red on rate cut pessimism

    Market to remain in red on rate cut pessimism

    KARACHI: The equity market likely to stay in red due to pessimism on high inflation, which created impressions the rate may not be cut in near future.

    Analysts at Arif Habib Limited forecast that the market to remain in the red following pessimism created from high inflation readings which have led to apprehensions over the rate cut which may not materialize soon.

    Moreover, shortfall in tax revenue targets (PKR 750bn shortfall expected for FY20) have added to concerns over the fiscal deficit recovery as well as possibility of more tax revenue measures.

    The KSE-100 index is currently trading at a PER of 7.0x (2020) compared to Asia Pac regional average of 12.2x and while offering DY of around 6.8 percent versus around 2.8 percent offered by the region.

    Correction phase seems to have set in, with the benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) trading in the red another week. Aggravated inflationary pressure (14.6 percent YoY for Jan’20 – 10-Yr high) and turmoil in global markets following the outbreak of the Corona Virus have been the primary reasons behind the continuation of the selling spree in the local bourse.

    Further stress was created in the market from the rise in bond yields following the latest PIB auction in which the 3-Yr Bond cut-off yield increased by 30 bps to 12.05 percent, 5-Yr Bond yield increased by 21 bps to settle at 11.4 percent and the 10-Yr bond yield increased by 10 bps to 11 percent.

    The KSE-100 Index closed at 40,144 points (down 1,487 points WoW).

    Sector-wise negative contributions came from i) Oil & Gas Exploration Companies (-376ts), ii) Commercial Banks (-241 points), iii) Oil & Gas Marketing Companies (-150 points), iv) Fertilizer (-140 points), and v) Cement (-125 points). Scrip-wise negative contributions were led by PPL (-158 points), OGDC (-125 points), HBL (-104 points), PSO (-74 points) and DAWH (-57 points).

    Foreign selling this week clocked-in at USD 14.2 million compared to a net buy of USD 8.0 million last week. Selling was witnessed in Cement (USD 7.0 million) and Exploration & Production (USD 5.1 million).

    On the domestic front, major buying was reported by Insurance Companies (USD 13.7 million) and Individuals (USD 7.7 million). Average Volumes settled at 168 million shares (down by 11 percent WoW) while average value traded clocked-in at USD 45 million (down by 1 percent WoW).

  • Import of live animals, birds banned on Coronavirus threat

    Import of live animals, birds banned on Coronavirus threat

    ISLAMABAD: The government has banned import of all types of live animals and birds with immediate effect in the wake of novel coronavirus.

    According to an official memo issued by the ministry of commerce to Quarantine Department a ban has been imposed on import of any zoonotic (animals and birds etc.) with immediate effect and until further orders.

    The memo said that on the recommendations of the Ministry of National Health Services, Regulations and Coordination (MNHSR&C), the ministry of commerce has imposed a ban on the import of any zoonotic (animals and birds etc.) with immediate effect and until further orders.

    The MNHSR&C has informed that the origin of recent outbreak of Novel type of Corona Virus (2019-nCOV) has been threat to be zoonotic in nature, which may potentially undermine government efforts to prevent the spread of said disease in Pakistan.

  • Educational institutions share information of persons paying annual fee above Rs200,000

    Educational institutions share information of persons paying annual fee above Rs200,000

    KARACHI: Educational institutions have provided details of persons paying over Rs200,000 annual fee to Federal Board of Revenue (FBR).

    Sources in the FBR said that the educational institutions had provided the details of persons paying annual fee of above Rs200,000 along with the withholding tax statement for the period July – December 2019.

    They said that the educational institutions are required to provide details of persons paying fees including their names, address, CNIC and amount tax withheld.

    The sources said that being withholding agents the educational institutions are required to file withholding statements biannually. The withholding statement for the period July – December 2019/2020 was due on January 31, 2020.

    The educational institutions are required to withholding tax under Section 236I of Income Tax Ordinance, 2001.

    Section 236I: Collection of advance tax by educational institutions.

    (1) There shall be collected advance tax at the rate specified in Division XVI of Part-IV of the First Schedule i.e. five percent on the amount of fee paid to an educational institution.

    (2) The person preparing fee voucher or challan shall charge advance tax under sub-section (1) in the manner the fee is charged.

    (3) Advance tax under this section shall not be collected from a person on an amount which is paid by way of scholarship or where annual fee does not exceed two hundred thousand rupees.

    (4) The term “fee” includes, tuition fee and all charges received by the educational institution, by whatever name called, excluding the amount which is refundable.

    (5) Tax collected under this section shall be adjustable against the tax liability of either of the parents or guardian making payment of the fee.

    (6) Advance tax under this section shall not be collected from a person who is a non-resident and,—

    (i) furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days;

    (ii) furnishes a certificate that he has no Pakistan-source income; and

    (iii) the fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.”

  • FPCCI urges government to declare cotton emergency

    FPCCI urges government to declare cotton emergency

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday urged the government to declare cotton emergency in order to increase the crop size.

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  • Stock market face decline of 581 pts on selling pressure

    Stock market face decline of 581 pts on selling pressure

    KARACHI: The stock market witnessed decline of 581 points on Friday owing to heavy selling during the second half of trading day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,144 points as against 40,724 points showing a decline of 581 points.

    Analysts at Arif Habib Limited said that after opening on a positive note and gaining 145 points in the first session, the market saw heavy sell-off that aggravated in the second session losing 678 points during the session and closing -581 points.

    Bond yields for 3Y and 5Y were also observed to be trading at higher yields that caused concern amongst investors due to higher inflation and delay in possible rate cut.

    Selling activity was largely seen across the board amidst low volumes for better part of the day, but second session saw volumes picking up as prices declined steeply.

    Cement sector led the volumes table with 43.3 million shares, followed by Chemical (28.1 million) and Banks (26 million). Among scrips, MLCF realized trading volumes of 21.5 million, followed by LOTCHEM (17.4 million) and UNITY (14.3 million).

    Sectors contributing to the performance include Banks (-132 points), O&GMCs (-71 points), E&P (-65 points), Cement (-65 points) and Power (-42 points).

    Volumes increased from 127.9 million shares to 193.5 million shares (+51 percent DoD). Average traded value also increased by 16 percent to reach US$ 44 million as against US$ 38 million.

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

    Stocks that contributed positively include EFUG (+9 points), FFC (+8 points), SCBPL (+4 points), BAHL (+3 points) and NATF (+2 points). Stocks that contributed negatively include HBL (-43 points), PSO (-41 points), HUBC (-30 points), DAWH (-27 points), and BAFL (-25 points).