Pkrevenue.com

Day: March 5, 2020

  • Stock market gains 476 points on falling PIB yields

    Stock market gains 476 points on falling PIB yields

    KARACHI: The stock market gained 476 points on Thursday owing to positive sentiments prevailed after decline in cut-off yield of government papers.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,382 points as against 38,906 points showing an increase of 476 points.

    Analysts at Topline Securities said that in line with the international and regional markets, KSE 100 index marked decent comeback, as the index gained +1.2 percent to close at 39,382 level.

    Decline in PIB yields in the range of 15-46 basis points in yesterday’s auction also provided stimulus to the market.

    Despite positivity in the market, banking sector declined by 1 percent as speculations over the decline in policy rate in upcoming monetary policy committee meeting are doing rounds.

    Investor confidence improved as traded volume and value went up by 82 percent and 80 percent respectively compared to last day. FCCL was today`s volume leader with 30 million shares.

  • Foreign exchange reserves increase by $126 million

    Foreign exchange reserves increase by $126 million

    KARACHI: February 28, 2020 – Pakistan’s total liquid foreign exchange reserves posted a notable increase of $126 million during the week ended February 28, 2020, according to data released by the State Bank of Pakistan (SBP) on Thursday.

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  • Rupee ends down by five paisas against dollar

    Rupee ends down by five paisas against dollar

    KARACHI: The Pak Rupee ended five paisas down against dollar on Thursday owing to demand for import payment, dealers said.

    The rupee ended Rs154.27 to the dollar from previous day’s closing of Rs154.22 in interbank foreign exchange market.

    The dealers said that earlier in the date the rupee gained value owing to inflows of workers remittances and export receipts. However, later import payment demand deteriorated value of the local currency.

    The rupee gained values during the past few days owing to lower demand for import payment after coronavirus spread in many countries.

    The exchange rate in open market witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs154.00/Rs154.30, the same previous day’s level, in cash ready market.

  • Standard Chartered Pakistan announces 42.5% growth in after tax profit

    Standard Chartered Pakistan announces 42.5% growth in after tax profit

    KARACHI: Standard Chartered Bank Pakistan has declared massive growth of 42.5 percent in after tax profit for the year ended December 31, 2019.

    The bank declared Rs16.017 billion profit after tax for the year 2019 as compared with Rs11.239 billion in the last year.

    The bank also declared earnings per share at Rs4.14 as compared with Rs2.9 billion in the last year.

    The profit before tax was recorded at Rs27.199 billion for the year 2019.

    The bank in its annual report said that a record performance in 2019 by the bank enabled it to deliver a profit before tax of Rs27.2 billion. “This is 47 percent higher than the corresponding period last year and the highest profit since incorporation.”

    Overall revenue growth was 37 percent, whereas client revenue increased by 31 percent year on year with positive contributions from transaction banking, financial markets and retail products.

    Operating expenses increased by only 2 percent year on year on account of spending mainly on the bank’s products, services and people to grow the franchise.

    All businesses have positive momentum in client income with strong growth in underlying drivers.

    Momentum in advances (net) continues with 29 percent growth since the start of the year. This was the result of a targeted strategy to build profitable, high quality and sustainable portfolios.

    With diversified product base, the Bank is well positioned to cater for the needs of its clients. On the liabilities side, the Bank’s total deposits grew by 10 percent, whereas current and saving accounts grew by 8 percent since the start of this year and are now 93 percent of the deposits base.

    The optimal funding structure of the balance sheet continues to support the Bank’s performance. During 2019, the bank contributed around Rs18.6 billion to the national exchequer in lieu of direct income taxes, as an agent of Federal Board of Revenue (FBR) and on account of FED / Provincial Sales Taxes.

    The bank continues to invest in its digital capabilities and infrastructure to enhance our clients’ banking experience through the introduction of innovative solutions.

    “We have made steady progress in further strengthening our control and compliance environment by focusing on our people, culture and systems. We are fully committed to sustained growth by consistently focusing on our clients and product suite along with a prudent approach to building the balance sheet while bringing the best in class services to our customers.”

  • People can file their returns after due date for appearance in ATL: FBR

    People can file their returns after due date for appearance in ATL: FBR

    KARACHI: People can still file their annual income tax returns after due date for appearing on the Active Taxpayers List (ATL) after paying default surcharge.

    The last date for filing income tax returns for tax year 2019 was February 28, 2020 and FBR issued ATL – 2019 of March 01, 2020. With the issuance of new ATL the ATL-2018 was no more applicable. Thus, those persons filed income tax returns for tax year 2018 and availing reduced rate of withholding tax rates on the basis of ATL 2018.

    However, those persons filed their returns for tax year 2019 will avail the reduced rate of withholding tax rates and their names appeared on the ATL 2019 till the next ATL issued on March 01, 2021.

    The FBR issued a clarification on the news items relating to actual number of tax returns filed in Tax Year 2019 and Tax Year 2018 published in the newspapers. FBR has clarified that number of tax returns filed in Tax Year 2018 till 28th February 2019 were 16,95,560 whereas the number of tax returns filed in Tax Year 2019 till 28th February, 2020 were 24,72,609 which showed an increase of 45 % compared to corresponding month in the last Tax Year.

    FBR has further stated that date for filing tax returns were extended in Tax Year 2018 and the last date for filing tax returns was set as 9th August, 2019. The news items depicted the comparison of tax returns filed till the last date of Tax Year 2018 with last date of Tax Year 2019 which gave the perception that the actual tax returns filed in Tax Year 2019 have decreased compared to Tax Year 2018.

    FBR has further added that the total period from the last date of Tax Year 2018 till last date of Tax Year 2019 consists of almost six months. This period of six months for Tax Year 2019 is comparably very short with that of Tax Year 2018. The number of Tax Returns 24,72,609 filed in six months for Tax Year 2019 shows great achievement of FBR.

    The people continue to file tax returns to come on Active Taxpayers List even after last date but the returns can only be filed by paying surcharge after the set last date.

  • FBR launched crackdown against 300,000 non-filers

    FBR launched crackdown against 300,000 non-filers

    ISLAMABAD: Federal Board of Revenue (FBR) has launched crackdown action against around 300,000 non-filers of annual returns for tax year 2019.

    The tax authorities have started sending notices to individuals and companies who filed their returns and declaration of assets for tax year 2018 but failed to comply this obligation in the subsequent year.

    The FBR issued Active Taxpayers List (ATL) on March 01, 2020 for tax year on the basis of return filed up to February 29, 2020.

    The ATL revealed that around 2.53 million individuals/companies filed annual returns for tax year 2019. Meanwhile, the estimated return filing for tax year 2018 was increased to record high of over 2.83 million, showing a gap of around 300,000 returns.

    However, the return filing has increased by 60 percent when compared with 1.6 million returns filed till February 28, 2019.

    Under Section 114 of Income Tax Ordinance, 2001, the FBR explained the mandatory requirement of return filing on certain classes of individuals and companies.

    As per the law every company registered with Securities and Exchange Commission (SECP) is required to file returns. But in contrast the FBR received around 40,988 corporate returns for tax year 2019.

    On the other hand the SECP had registered around 100,000 companies till June 30, 2019. This shows that around 59 percent corporate entities had failed to comply with mandatory requirement.

    A statement issued by the FBR on February 29 revealed that it had received 2.34 million returns from salary and business individuals. While another 62,403 returns were filed by Association of Persons (AOPs).

    Tax officials said that the tax authorities had started issuing notices giving opportunity to non-filers to ensure compliance along with payment of late filing.

    The sources said that the action had been initiated after expiry of due date for filing tax returns, which was February 28, 2020.

    In case persons/company deliberately default then penal provisions may be invoked.

    According to tax ordinance, in case a person fails to file return of income by due date than such person is required to pay a penalty equal to 0.1 percent of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50 percent of the tax payable provided that if the penalty worked out as aforesaid is less than forty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of forty thousand rupees.

    In case a person deliberately not comply with the notice for filing return then such person would be liable to fine or imprisonment for one year.