Pkrevenue.com

Day: April 7, 2020

  • FBR issues SROs for reducing rate of duty, taxes

    FBR issues SROs for reducing rate of duty, taxes

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued concessionary Statutory Regulator Orders (SROs) for reduction in duty and tax rate for import of pulses and edible oil/seeds.

    The FBR issued two different SROs i.e. SRO 287(I)/2020 and SRO 288(I)/2020 to allow concession of duty and taxes on domestic supply and import of goods.

    Through SRO 287(I)/2020 the government has allowed exemption from withholding income tax on import of pulses till June 30, 2020.

    Similarly, through SRO 288(I)/2020 the FBR also withdrew additional customs duty imposed on import of pulses. This additional customs duty shall not be levied till June 30, 2020.

    Through SRO 287(I)/2020 the rate of tax under Section 153 shall be at 1.5 percent in case of a person, other than a company, as a recipient of payment for goods supplied to Utility Stores Corporation of Pakistan. The tax rate shall be applied on the gross amount of payment in respect of supply of tea, spices, salt, dry milk, sugar, pulses, wheat flour and ghee for the period commencing from the date of issuance of the notification till June 30, 2020.

  • Equity market gains 652 points on improved sentiments

    Equity market gains 652 points on improved sentiments

    KARACHI: The equity market gained 652 points on Tuesday on positive sentiments of investors regarding early release of IMF supported loan.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,232 points as against 30,579 points showing an increase of 652 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note with +75 points and 0.8 million shares traded at the opening bell.

    The index continued the surge throughout the session, increasing by 724 points during the day and ending the session +709 points.

    Expectation of early release of COVID 19 financial assistance from IMF kept the mood elevated at the bourse, which was further aided by an uptrend in international crude prices (which gained another 3 percent over yesterday).

    Besides E&P Stocks, Cement and Steel also rallied based on construction package announced last Friday. Cement sector led the volumes with 54.5 million shares, followed by O&GMCs (23.1 million) and Banks (21.4 million).

    Among scrips, MLCF topped the charts with 20.4 million shares followed by HASCOL (19.8 million) and FFL (9.8 million).

    Sectors contributing to the performance include E&P (+176 points), Cement (+120 points), Banks (+109 points), Power (+73 points) Fertilizer (+44 points).

    Volumes declined from 233.3 million shares to 172.7 million shares (-26 percent DoD). Average traded value also declined by 23 percent to reach US$ 40.4 million as against US$ 52.2 million.

    Stocks that contributed significantly to the volumes include MLCF, HASCOL, FCCL, KEL, and PIOC, which formed 38 percent of total volumes.

    Stocks that contributed positively to the index include OGDC (+79 points), PPL (+70 points), HUBC (+69 points), HBL (+64 points) and LUCK (+54 points). Stocks that contributed negatively include BAHL (-15 points), NBP (-9 points), THALL (-7 points), JDWS (-4 points), and MUREB (-4 points).

  • Importers wait issuance of concessionary SRO for consignment clearance

    Importers wait issuance of concessionary SRO for consignment clearance

    KARACHI: Around 500 containers of commodities have been stuck up at ports as importers are waiting issuance of concessionary SRO for customs clearance.

    “The government on March 30, 2020 decided on to bring advance tax on import of pulses to zero from two per cent and exemption of two per cent additional customs duty on oil seeds and palm oil imports,” Patron in Chief, Karachi Wholesalers Grocers Association (KWGA), Anis Majeed said in a statement on Tuesday.

    Majeed said that the government had reduced 2 percent advance income tax on Pulses and 2 percent additional duty on edible oil and seeds for alleviating the adverse impact of Covid-19 and lockdown.

    “Our members are waiting for the SRO so that they can get duty relief on pulses imports,” he pointed out

    KWGA chief further said he has taken up the matter with Chief Collector of Customs but the customs officer unable to respond positively.

    “A number of importers are confused whether to clear their consignments of pulses while few of them are trying to clear their goods as they believe that not releasing pulses may create shortage in the markets at a time when buying of pulses and other essential items have surged sharply on rising demand from ration providers to the poor people,” he added.

    He claimed that 400-500 containers of various pulses are awaiting clearance, while importers of oil seeds are also double minded as they are not clearing 32,000 tonnes of canola seed that landed at Karachi Port and another 64,000 tonnes at Port Qasim.

  • APTMA demands deferment of utility bills, interest payment

    APTMA demands deferment of utility bills, interest payment

    KARACHI: All Pakistan Textile Mills Association (APTMA) has demanded the government of granting deferment of utility bills and interest payment against loans as industry was facing acute liquidity shortage.

    APTMA Chairman Zahid Mazhar emphasized that currently there is an acute shortage of liquidity and it is impossible for the mills to pay the utility bills.

    He requested the government to come to the rescue and immediately announce the deferment of payment of gas and electricity bills by the industry for a period of at least one month.

    He further demanded deferment of payment of interest on short term loans for at least three months. He also pointed out the dire need to immediately bring down the rate of interest to 5 percent.

    Zahid Mazhar, appreciated all the positive steps the provincial and federal governments have under taken to control wide spread of Coronavirus (COVID-19) Pandemic and to combat its adverse impact.

    He said that due to drastic slowdown of domestic as well as international markets and delay in receipt of payment from them in addition to cancellation of export orders even from big organizations and large scale buying houses, export oriented textile industry is facing worst ever liquidity crisis.

    He said the Coronavirus (COVID-19) Pandemic is having extremely negative impact on Pakistan’s economy. Though the government has taken some positive steps like deferring loan repayments and speeding up of refunds but it will fall far short of keeping the industry afloat.

    He further said that drastic situation needs drastic measures to be taken to save our export oriented textile industry from the negative economic impact of Novel Coronavirus (COVID-19) as it is showing adverse impact on exports.

    He demanded the government to provide immediate relief in the best interest of industry, economy and the people as the impact of slowing of economy and lockdown can only be shielded by the industry for a month or two beyond which there will be no capacity to retain workers leading to massive unemployment.

    He requested the Government of Sindh to allow running of those textile mills which have labour residing within their residential colonies as well as those export oriented units which have export orders in hand.

  • Rupee depreciates by 91 paisas on import payment demand

    Rupee depreciates by 91 paisas on import payment demand

    KARACHI: The Pakistan rupee witnessed a sharp decline on Tuesday, falling by 91 paisas against the US dollar. The rupee closed at Rs167.90 per dollar in the interbank foreign exchange market, down from the previous day’s rate of Rs166.99. The depreciation was primarily driven by increased demand for dollars, largely due to rising import payments.

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  • SBP exempts service charges on payment made to PM Corona Relief Fund

    SBP exempts service charges on payment made to PM Corona Relief Fund

    KARACHI: State Bank of Pakistan (SBP) has exempted services charges on donations made to Prime Minister Corona Relief Fund through payment cards.

    The SBP in a statement on Tuesday said that it previously issued a circular on August 06, 2018 on Service Charges on Donations/ Payments to Supreme Court of Pakistan’s Diamer Bhasha and Mohmand Dam Fund through Payment Cards.

    In this regard, it has been decided that the scope of the Circular would also cover Payments/Donations made to the Prime Minister’s as well as provincial governments’ Covid19 Pandemic Relief Funds.

    Accordingly, all issuing and acquiring banks in Pakistan shall not charge any service fee including Interchange Reimbursement Fee (IRF), Merchant Discount Rate (MDR), Merchant ID Fee, on boarding fee or any other fee that may be applicable on any transactions made to the said account.

    The issuing and acquiring banks/microfinance banks/payment schemes are advised to meticulously comply with these instructions.