KARACHI: Federal Board of Revenue (FBR) has been urged to trace unregistered persons instead collecting three percent further sales tax on local supplies.
(more…)Day: June 2, 2020
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Equity market gains 386 points as banks attract investors
KARACHI: The equity market gained 386 points on Tuesday as banking sector attracted attention of investors.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,408 points as against 34,022 points showing an increase of +386 points.
Analysts at Arif Habib Limited said that the market went up today on the back of banking sector that gained prominence post Eid.
Yesterday’s performance of Index also came largely from Banking sector and today’s continuation gave investors the confidence to invest more.
A couple of factors that helped Investors make a buying stance on Banking sector have been a gradual increase in secondary market PIB yields since last month as well as annual average inflation for FY20 in excess of 10 percent that diminishes the prospect of further rate cut and therefore a renewed interest in Banking sector.
Interestingly, international crude prices were up as well overnight and during today’s market session, however, E&P stocks didn’t pay heed to the price increase and saw selling pressure. Cement sector stocks also showed some signs of revival but remained range bound.
Banking sector stocks led the volumes with 50 million shares, followed by Technology (24.3 million) and Cement (17.3 million). Among scrips, PAEL realized trading volume of 14.2 million, followed by TRG (12.5 million) and HASCOL (12.3 million).
Sectors contributing to the performance include Banks (+332 points), E&P (+38 points), Autos (+13 points), Fertilizer -22 points), Pharma (-18 points) and Inv Banks (-14 points).
Volumes increased from 198.1 million shares to 220.6 million shares (+11 percent DoD). Average traded value also increased by 19 percent to reach US$ 52.3 million as against US$ 44.2 million.
Stocks that contributed significantly to the volumes include PAEL, TRG, HASCOL, BOP and UNITY, which formed 28 percent of total volumes.
Stocks that contributed positively to the index include MCB (+89 points)a, UBL (+82 points), HBL (+63 points), BAFL (+35 points) and POL (+29 points). Stocks that contributed negatively include FFC (-17 points), DAWH (-14 points), SEARL (-11 points), HMB (-11 points), and OGDC (-7 points).
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Rupee further weakens by 81 paisas against dollar
KARACHI: The Pak Rupee further weakened by 81 paisas against dollar on Tuesday owing to higher demand for import and corporate payments, dealers said.
The rupee closed at Rs164.89 to the dollar from last day’s closing of Rs164.08 in interbank foreign exchange market.
The rupee depreciated by Rs1.79 against the dollar during last two days.
Currency experts said that the deterioration in rupee value was due to higher demand for import and corporate payments.
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.
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Honda Cars declares 82 percent decline in annual profit
KARACHI: Honda Atlas Cars (Pakistan) Limited has posted 82 percent decline in annual profit for the period ended March 31, 2020, said a notification on Tuesday.
The car manufacturing company declared Rs682 million profit after tax for the year ended March 31, 2020 as compared with Rs3.85 billion in the preceding year.
The sales of the company fell by 42 percent to Rs55 billion for the year ended March 31, 2020 as compared with Rs95.13 billion in the preceding year.
The administrative expenses were flat at Rs738.75 million for the year. Operating expenses were also reduced to Rs1.045 billion for the year under review.
The company declared Rs4.77 as earning per share for the year ended March 31, 2020 as against Rs26.97 EPS declared in the preceding year.
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Above 120,000 income tax returns added to ATL during lockdown
ISLAMABAD: The tax authorities have received above 120,000 income tax returns since launch of new Active Taxpayers List (ATL) on March 01, 2020 and during ongoing lockdown to prevent spread of coronavirus, according to updated list issued June 01, 2020.
The updated ATL for tax, around 120,000 taxpayers filed their annual returns for tax year 2019 since March 01, 2020.
The number of active taxpayers increased to over 2.65 million as of May 31, 2020 from 2.53 million returns as shown in new ATL for tax year 2019.
The FBR updates ATL every week and on an average the revenue body receives around 20,000 returns per week. However, due to lockdown in the country after the outbreak of coronavirus the number of financial transactions had fallen drastically.
It is worth mentioning that additional 120,000 income tax returns have been filed after the due date. The due date for filing income tax returns for tax year 2019 was February 28, 2020.
As per law it was mandatory for individuals, Association of Persons (AOPs) and corporate entities to file annual return in order to avail reduced rates of withholding tax on certain transactions.
Filing return after due date a person is required to pay surcharge in order to appear on ATL besides paying late filing penalty.
The sources said changes in law through Finance Act, 2019 were also compelling to file their returns. Through Finance Act, 2019, Tenth Schedule was inserted to Income Tax Ordinance, 2001 under which a person not appearing on the ATL would be liable to pay 100 percent additional withholding tax while making certain transactions.
Prior to this change the persons not filing income tax returns were liable to pay enhanced rate of withholding tax.
Previously, the law provides for the concept of a non-filer and stipulates higher withholding rates for the same which were adjustable at the time of filing of income tax return.
A senior FBR official said that such tax regime had created a misconception that a non-filer can go scot free by choosing not to file income tax return.
The measure are meant to increase the number of filers, however over time the focus shifted to raising additional revenue only.
The measure had not achieved the desired results as the regime did not provide for any legal framework to ensure filing of return by such non-filers, the official said.
In order to remove the aforesaid misconception, the concept and the term of ‘non-filer’ was abolished from the statute, the official added.
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Sindh Revenue Board announces tax incentive package
KARACHI: Sindh Revenue Board (SRB) has announced tax incentive scheme and waived up to 100 percent penalty amount on payment of outstanding amount, said a statement on Monday.
The SRB said that acceding to the request of the taxpayers, associations and tax bars, the provincial revenue authority, had issued tax incentive package, which provides substantial benefits and relief to the taxpayers, service providers and withholding agents, in return of their tax compliance, under the Sindh Sales Tax on Services Act, 2011.
The package includes exemption of up to 100 percent of the amount of default surcharge, total remission of penalties and immunity from arrest and prosecution if the taxpayer deposits:
- the liability of the arrears of tax (as outstanding on May 31, 2020) plus zero percent of the amount of default surcharge thereon between June 01, 2020 and June 15, 2020;
- the liability of arrears tax (as outstanding on May 31, 2020) plus five percent of the amount of default surcharge thereon between June 16, 2020 and June 22, 2020; and
- the liability of arrears of tax (as outstanding on May 31, 2020) plus 10 percent of amount of default surcharge between June 23, 2020 and June 30, 2020.
The SRB said that in case where no tax liability is outstanding but only the arrears of amounts of penalty and/or default surcharge are outstanding, tax incentive package allows the remission of 95 percent of the amount of such penalty and 90 percent of the amount of such default surcharge, if the balance of the amounts of penalty and default surcharge are deposited during the period from June 01, 2020 to June 30, 2020.
The provincial revenue authority advised all taxpayers, service providers and withholding agents to avail the benefits of the tax incentive package which shall expire at the close of June 30, 2020.
The incentives announced through the notification provide and opportunity to the taxpayers to get substantial waiver of their liability to pay penalties and default surcharge by depositing the outstanding amounts of tax liabilities during the period the said notification is valid.
The SRB further said that the package may also help in resolution of disputes pending in litigation, appeals, adjudication or audit.