Pkrevenue.com

Day: May 28, 2020

  • Foreign exchange reserves slip by $20 million

    Foreign exchange reserves slip by $20 million

    KARACHI: The liquid foreign exchange reserves of the country have slipped by $20 million to $18.598 billion by week ended May 21, 2020.

    The total foreign exchange reserves of the country were at $18.618 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The official reserves of the central bank fell by $55 million to $12.074 billion by week ended May 21, 2020 as compared with $12.129 billion a week ago.

    The SBP attributed the decline to external debt repayment.

    The foreign exchange reserves held by commercial banks however increased by $35 million to $6.524 billion by week ended May 21, 2020 as against $6.489 billion a week ago.

  • FBR suggested to abolish further sales tax on fulfilling CNIC condition

    FBR suggested to abolish further sales tax on fulfilling CNIC condition

    KARACHI: Federal Board of Revenue (FBR) has been proposed to abolish further sales tax in case taxpayers fulfil condition of Computerized National Identity Card (CNIC).

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  • Stock market falls by 141 points after Eid holidays

    Stock market falls by 141 points after Eid holidays

    KARACHI: The stock market fell by 141 points after Eid Holidays on Thursday as international crude prices slipped, dealers said.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,695 points as against 33,836 points showing a decline of 141 points.

    Analysts Arif Habib Limited said that the market opened on a negative today and maintained the negative trajectory, realizing a loss of 238 points during the session and closing -141 points.

    International crude prices slipped overnight to trade near US$31.5/bbl, which was approx. 4 percent down from the level KSE100 saw on last Thursday, before the market closed for long weekend (due to Eid).

    Besides, Cement and Banking sectors remained under pressure throughout the session for want of a clear positive trigger.

    Off-board scrips, TRG, UNITY, PAEL, HUMNL remained in the limelight in addition to Pharma sector (primarily SEARL and GLAXO), which has consistently shown performance on the back of Covid-19 cures.

    Technology sector led the volumes with 36.9 million shares, followed by O&GMCs (28.8 million) and Vanaspati (21.2 million). Among scrips, TRG topped the index with 24.7 million shares, followed by HASCOL (24.4 million) and UNITY (21.1 million).

    Sectors contributing to the performance include Banks (-76 points), E&P (-56 points), Fertilizer (-22 points), Chemical (-16 points), Power (-14 points), Pharma (+31 points) and Technology (+21 points).

    Volumes declined further from 147.2 million shares to 194.6 million shares (+32 percent DoD). Average traded value also increased by 25 percent to reach US$ 45.1 million as against US$ 36.4 million.

    Stocks that contributed significantly to the volumes include TRG, HASCOL, UNITY, PAEL and MLCF, which formed 48 percent of total volumes.

    Stocks that contributed positively to the index include SEARL (+21 points), TRG (+19 points), GLAXO (+11 points), MARI (+9 points) and KAPCO (+7 points). Stocks that contributed negatively include OGDC (-27 points), UBL (-27 points), PPL (-26 points), HBL (-24 points), and HUBC (-18 points).

  • Mandatory training courses for promotions to be completed through tele-teaching

    Mandatory training courses for promotions to be completed through tele-teaching

    ISLAMABAD: The mandatory training courses for promotion of government officers including from Federal Board of Revenue (FBR) will be held online considering COVID-19 pandemic, a notification said.

    In this regard National School of Public Policy (NSPP) informed that all the courses of NSPP i.e. 112th National Management Course (NMC), 27th Senior Management Courses (SMC) and 29th Mid-Career Management Course (NCMC) have been redesigned keeping in view the prevailing health emergency on account of of COVID-19.

    “Remaining training activities will be completed through remote tele-teaching mode by using Zoom/Skype and e-portal of respective courses,” it said.

    “These essentially comprise of Simulation Exercise, Case Studies, Analysis Papers, Topical Discussions and Research Papers particularly related to the foreign study tour of the respective country assigned to different participants of NMC.”

    The notification said that the courses had been rescheduled by reducing the duration of three weeks of NMC, five weeks of SMC and three weeks of MCMC respectively subject to the slight modifications by the respective NIMs made keeping in view the activities completed before the suspension of the courses.

    The participants have been asked to join the 112th NMC, 27th SMC and 29th MCMC respectively with effect from June 01, 2020 through e-portal of the respective unit.

  • Rupee falls against dollar as market resumes after long holidays

    Rupee falls against dollar as market resumes after long holidays

    KARACHI: The Pak Rupee fell by Rs1.07 against dollar on Thursday as trading resumed after long holidays due to Eid-ul-Fitr.

    The rupee closed at Rs161.99 to the dollar from previous closing of Rs160.92 on May 21, 2020 in interbank foreign exchange market.

    Currency experts said that the deterioration in rupee value was due to higher demand for import and corporate payments. They said that rupee was under pressure due to settlement of import payments after long holidays.

    Further, they said that after ease in lockdown the demand was increasing and importers started purchasing dollars for future buying.

    The currency experts said that fall in exports and remittances also put pressure on the local currency.

    Overseas Pakistani workers sent home $1.790 billion in April, compared with $1.894 billion in previous month.

    Pakistan received $18.781 billion in remittances in July-April FY2020, compared with $17.801 billion in the same period last year.

    However, the experts said that the local currency recovered on the back of improved economic indicators.

  • Insurance should be excluded from taxable services

    Insurance should be excluded from taxable services

    KARACHI: The provincial tax authorities have been urged to exclude insurance from taxable services in order to provide incentives to insurance industry.

    Overseas Investors Chamber of Commerce and Industry (OICCI) in its proposals for budget 2020/2021 submitted to Sindh Revenue Board (SRB), said that each year, the life/health insurance companies have been approaching the SRB for an exemption, which is granted annually.

    The last exemption for life insurance was valid only till June 30, 2019, whereas exemption for Corporate Health Insurance is valid till June 30, 2020 and has not yet been renewed.

    The life and health insurance industry is based largely in the province of Sindh, where, the medical sector itself is exempt from SST.

    Accordingly, subjecting the corporate health insurance to SST is making it uncompetitive, in Sindh, by adding on to the cost of health insurance.

    Discussions are still ongoing with the Chairman SRB, and the Chairperson, Sindh Board of Investment, for exemption on the same.

    The OICCI recommended that both, life insurance and health insurance, which do not fall within the scope of definition of service, should be permanently included in the list of exempted services by incorporating the same under table of exempted services specified in SRB’s notification no. SRB 3-4/7/2013 dated June 18, 2013, as per the following:

    01. 9813.15: Life Insurance

    02. 9813.16: Health insurance, rendered to both, individuals and corporates.

    It may be mentioned that in Sindh these are taxable services.

    A life insurance/ health policy is not a service. It is an underwriter’s promise to pay to the policy holder ‘in the future’, a specified sum of money, ‘either on occurrence of an identified event or on maturity of the policy’.

    Such tax is highly discriminatory as entire health sector itself remains exempt and is not taxed.

    This creates a deterrence for insurance business, as a person obtaining insurance would be paying additional 13 percent as well as cost of insurance, compared to directly obtaining health services, where he does not have to pay this tax.

    This is clearly discriminatory and in violation of Article 25 of the Constitution of Pakistan.

    The assertion that insurance is not a service, has also been legally upheld in USA and the Court there has ruled that life insurance policies are not “services”.

    The KP Revenue Authority has exempted life insurance from the purview of taxable services. Uniformity across the country is essential for ease of doing business.

  • Banks timing revised

    Banks timing revised

    KARACHI: State Bank of Pakistan (SBP) on Wednesday issued revised banks timing from May 27, 2020 after Ramazan ul Mubarak.

    In a notification sent to president and chief executives of all banks, development finance institutions and microfinance banks, the SBP said that the central bank will observe the following office timings till further orders:

    Monday to Thursday: 10:00 a.m. to 4:30 p.m. (with prayer / lunch break from 1:30 p.m. to 2:00 p.m.)

    Friday: 10:00 a.m. to 1:00 p.m.

    Banks / DFIs / MFBs are accordingly advised to ensure compliance of the above-mentioned timings in letter and spirit, the SBP said.