Pkrevenue.com

Month: August 2020

  • Stock market gains 55 points amid selling pressure

    Stock market gains 55 points amid selling pressure

    KARACHI: The stock exchange gained 55 points on Monday amid selling pressure seen in banks and fertilizer sectors, analysts said.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,111 points as against 41,056 points showing an increase of 55 points.

    Analysts at Arif Habib Limited said that the market gained a total of 255 points during the session, however, due to selling pressure in Banks and Fertilizer sectors the index saw erosion of all the gains.

    The index closed 55 points, which was caused by an increase in stock prices of PPL and OGDC during last half hour.

    Cement sector performed well today, which saw DGKC, LUCK and KOHC contributing positively to the Index.

    Cement sector realized the most volumes with 81.4 million shares, followed by Banks (71.7 million) and Technology (61.1 million). Among scrips BIPL topped the volumes with TRG (40 million) and POWERR1 (32 million).

    Sectors contributing to the performance include Cement (+50 points), E&P (+46 points), Tobacco (+27 points), Power (+22 points), Technology (-53 points), Banks (-41 points) and Fertilizer (-20 points).

    Volumes increased from 238.5 million shares to 451.7 million shares (+89 percent DoD). Average traded value also increased by 94 percent to reach US$ 97.3 million as against US$ 50.2 million.

    Stocks that contributed significantly to the volumes include BIPL, TRG, POWERR1, PRL and HASCOL, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include MARI (+28 points), PPL (+28 points), PAKT (+27 points), LUCK (+26 points) and HUBC (+19 points). Stocks that contributed negatively include TRG (-46 points), UBL (-21 points), POL (-19 points), ENGRO (-13 points) and HBL (-12 points).

  • SBP issues instructions to banks on sugar import

    SBP issues instructions to banks on sugar import

    KARACHI: State Bank of Pakistan (SBP) on Monday issued instructions to banks regarding import of sugar by private importers.

    The central bank said that the ministry of commerce had issued a public notice stating that the government had allowed import of 200,000 tons of white sugar by private importers as per the terms and conditions mentioned therein.

    The SBP said that to facilitate the import of sugar under the subject Public Notice, the banks may process the requests for import of white sugar as per following terms and conditions:

    Import may be allowed on behalf of those importers who have been issued permit(s) by the Ministry of Commerce under the above-mentioned Public Notice;

    Import may be allowed on CFR Free out basis, as an exception to the instructions given under Para 5 Chapter 13 of the FE Manual;

    Advance payment up to 100 percent of the value of letter of credit/contract/proforma invoice may be allowed, subject to compliance with other terms & conditions given under Para 30 of Chapter 13 of the FE Manual;

    The commercial banks have been asked to submit consolidated data of LCs issued and advance payments made, against issued permits, to Foreign Exchange Operations Department, SBP BSC, Head Office, Karachi on daily basis.

    The banks should also ensure compliance with all other terms & conditions of permit(s) issued by Ministry of Commerce.

  • FBR launches action against suspicious transactions to comply FATF requirement

    FBR launches action against suspicious transactions to comply FATF requirement

    ISLAMABAD: Federal Board of Revenue (FBR) has launched action against suspicious transactions to curb money laundering in order to meet the requirement of Financial Action Task Force (FATF).

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  • FBR issues list of businesses located in eight cities for mandatory income tax integration

    FBR issues list of businesses located in eight cities for mandatory income tax integration

    ISLAMABAD, July 5, 2023 – The Federal Board of Revenue (FBR) has issued a directive mandating the online integration of businesses located in eight major cities across Pakistan under the income tax laws. This measure is part of the FBR’s ongoing efforts to improve tax compliance and streamline revenue collection.

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  • Stock market gains 219 points amid mixed trading

    Stock market gains 219 points amid mixed trading

    KARACHI: The stock market gained 219 points on Thursday amid mixed trading activities.

    The Index closed at 41,082pts as against 40,863pts showing an increase of 219pts.

    Analysts at Arif Habib Limited said that the market added another 414pts during the session and closed the session +219pts. Cement and Banking sector stocks played important role today.

    BOP’s financial results brought the stock price down. Refinery sector faced selling pressure that brought ATRL and NRL down after posting respective financial results yesterday.

    E&P companies also saw selling pressure however, trading volume remained the same relative to past sessions. Banking sector led the volumes table with 78.2M shares followed by Cement (74.6M) and Technology (59.8M). Among scrips, BOP topped the volumes with 39.7M, followed by TRG (36.9M) and KEL (28.4M).

    Sectors contributing to the performance include Technology (+50pts), Cement (+35pts), Power (+34pts), Textile (+31pts) and Chemical (+25pts).

    Volumes increased from 508.1mn shares to 544.7mn shares (+7% DoD). Average traded value however declined by 7% to reach US$ 119.1mn as against US$ 128.5mn.

    Stocks that contributed significantly to the volumes include BOP, TRG, KEL, ANL and MLCF, which formed 25% of total volumes.

    Stocks that contributed positively to the index include TRG (+37pts), HUBC (+30pts), COLG (+27pts), HBL (+17pts) and THALL (+13pts). Stocks that contributed negatively include MCB (-14pts), POL (-12pts), BOP (-10pts), BAFL (-7pts) and SNGP (-6pts).

  • Rupee makes significant recovery

    Rupee makes significant recovery

    KARACHI: The Pak Rupee made significant recovery against the dollar on Thursday owing to inflows of export receipts and remittances.

    The rupee ended Rs167.43 to the dollar from previous day’s closing of Rs168.43 in interbank foreign exchange market.

    Currency experts said that the market sentiments improved after a scheme announced by the State Bank of Pakistan (SBP) to attract overseas Pakistanis to invest in domestic capital market.

    A day earlier, the governor of the central bank in an interview said that overseas Pakistanis can invest in the local bourses through digital accounts. In this regard commercial banks would facilitate the overseas Pakistanis.

  • Exemption to Greenfield Industry: FBR amends sales tax rules

    Exemption to Greenfield Industry: FBR amends sales tax rules

    ISLAMABAD: Federal Board of Revenue (FBR) has notified rules for processing application to avail sales tax exemption on greenfield industry.

    The FBR issued SRO 777(I)/2020 to amend Sales Tax Rules 2006 and said that a registered person applying for approval of its industrial undertaking as “Greenfield Industry”, as defined in sub-clause (12A) of section 2 and for exemption under Serial No.150 of the Table –I of Sixth schedule to the Sales Tax Act 1990, shall make an application electronically to the Commissioner Inland Revenue having jurisdiction in the form prescribed in Annexure-I along with documents prescribed in Annexure-II of this Chapter.

    The registered person shall also submit a hard copy of the prescribed application to the Commissioner Inland Revenue for the purposes of approval under sub-clause (12A) of section 2 and Serial No.150 of Table-I of Sixth Schedule to the Sales Tax Act, 1990 along with all the documents required under this Chapter.

    Processing of applications by the Commissioner

    (1) On receipt of an application under rule 158B, the Commissioner Inland Revenue may make such inquiries or call for such further information or documents as deemed necessary.

    (2) After scrutiny of the application and the documents annexed thereto, the Commissioner Inland Revenue shall, forward the application to the Engineering Development Board, Government of Pakistan hereinafter referred to as “EDB” in this Chapter, for seeking its expert opinion as to whether the process or technology being employed by the said industrial undertaking is or is not already under use in Pakistan.

    (3) Upon receipt of application forwarded by Commissioner Inland Revenue, the EDB shall process the same within the time stipulated by him and communicate its expert opinion / findings with regard to the query raised in sub-rule (2) tothe Commissioner Inland Revenue.

    Approval of the application:

    (1)After completion of all the formalities, the Commissioner Inland Revenue may, through an order in writing, approve the industrial undertaking for the purposes of sub-clause (12A) of Section 2 of the Act.

    (2) The Commissioner Inland Revenue may, after recording the reasons in writing, refuse to grant approval for the purposes of sub-clause (12A) of Section 2 of the Act.

    Finalization of Applications. The Commissioner Inland Revenue shall finalize the applications filed under Rule 158B within fifteen days of its receipt.

    Appeal against decision of a Commissioner Inland Revenue. Any registered person dissatisfied with the decision of the Commissioner Inland Revenue under Rule 158D may prefer an appeal within sixty days of the receipt of the order to the Appellate Tribunal Inland Revenue under section 46 of the Act.

    Procedure for generation and transmission of exemption certificate in the WeBOC. — (1)In case of grant of approval as “Greenfield Industry”, the exemption certificate shall be generated automatically by the IRIS on the basis of the approval as Greenfield industry granted by the Commissioner Inland Revenue.

    The exemption certificate shall be automatically transmitted from IRIS to WeBOC as per existing procedure.

    Procedure for availing sales tax exemption on import of plant and machinery:

    (1) The registered person shall upload a copy of the order of approval as Greenfield Industry already issued by the Commissioner Inland Revenue in WeBOC at the time of preparations of Goods Declaration for the imported plant and machinery.

    (2) The registered person shall claim in the Goods Declaration the exemption from sales tax on the imported plant and machinery as per Serial No. 150 of Table-1 of the Sixth Schedule to the Sales Tax Act 1990.

  • Bank holidays announced for Ashura

    Bank holidays announced for Ashura

    KARACHI: State Bank of Pakistan (SBP) on Tuesday announced that the central bank will remain closed on August 29 and 30 on occasion of Ashura, Muharram ul Haram, 1442 AH.

    The SBP, in a statement, said that the central bank will remain closed on August 29-30, 2020 (Saturday and Sunday) on the occasion of Ashura, Muharram-ul-Haram, 1442 AH.

  • Stock market gains 570 points as major activity seen in banks

    Stock market gains 570 points as major activity seen in banks

    KARACHI: The stock market gained 570 points on Tuesday as banking sector performed well on upcoming inflations numbers and monetary policy announcement.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,863 points as against 40,293 points showing an increase of 570 points.

    Analysts at Arif Habib Limited said that the market continued the ascent from yesterday’s level. Banking sector performed well today, which brought the index to higher level.

    Expectation of high CPI, scheduled to be announced next week and monetary policy decision in September are the major reasons for brisk activity in Banking sector.

    Announcement of POL’s financial results with high dividend payout resulted in POL reaching a new high.

    Overall, E&P stocks posted gains on the index. Refinery sector posted highest trading volumes with 65.9 million shares, followed by Cement (62.2 million) and O&GMCs (53.5 million). Among scrips, PRL topped the volumes with 48.9 million shares, followed by HASCOL (36.1 million) and KAPCO (18.5 million).

    Sectors contributing to the performance include Banks (+205 points), E&P (+86 points), Fertilizer (+55 points), Textile (+46 points) and Power (+38 points).

    Volumes declined from 535.1 million shares to 508.0 million shares (-5 percent DoD). Average traded value however increased by 6 percent to reach US$ 127.8 million as against US$ 120.8 million.

    Stocks that contributed significantly to the volumes include PRL, HASCOL, KAPCO, MLCF and TRG, which formed 27 percent of total volumes.

    Stocks that contributed positively to the index include HBL (+124 points), MCB (+61 points), UBL (+48 points), POL (+41 points) and ENGRO (+37 points). Stocks that contributed negatively include BAFL (-35 points), NESTLE (-11 points), ABL (-8 points), PMPK (-6 points) and PSEL (-5 points).

  • FBR grants audit immunity to salaried persons, pensioners

    FBR grants audit immunity to salaried persons, pensioners

    ISLAMABAD: Federal Board of Revenue (FBR) has granted audit immunity to salaried individuals and pensioners for income declared/ return filed for tax year 2018.

    The FBR on Tuesday issued Audit Policy 2019 and announced exclusion from audit to certain classes of taxpayers.

    The FBR said that all cases where income chargeable to tax under the head of salary and / or pension exceeds 50 percent of taxable income should be excluded from income tax audit. The FBR said that directors of companies would not qualify for the exclusion.

    The FBR also excluded persons falling under final tax regime from audit selection.

    The FBR said that under Audit Policy 2019 those cases would not be selected, which were already selected for audit by commissioner Inland Revenue and Director Intelligence and Investigation (I&I) (IR) under Section 177 and in consequence of action under section 175 of the Income Tax Ordinance, 2001 for tax year 2018.

    The FBR further said that those cases would not be selected where declaration had been made under the Voluntary Declaration of Domestic Assets Act, 2018. Further, those cases will also not be selected where declaration has been made under the Asset Declaration Ordinance, 2019.

    The FBR said that Audit Policy 2019 would apply to persons or classes of persons falling under all or any of the three domestic federal tax statutes i.e. Income Tax Ordinance, 2001, Sales Tax Act, 1990, and Federal Excise Act, 2005 and shall provide the necessary framework for selection of cases for audit by the Board.

    The FBR further said that the for the purpose of selecting cases for audit through risk based approach by conducting computer ballots, the policy be effective for tax year 2018 for Income Tax and corresponding tax periods for sales tax and federal excise.

    The FBR said that it would conduct computer ballot by applying risk based parameters for selection of 0.76 percent of cases for audit out of the total filers after exclusions in Income Tax for the tax year 2018.

    For sales tax and federal excise, the FBR would select 1.67 percent and 5.65 percent cases for audit respectively out of the total filers after exclusions for tax period corresponding to accounting period adopted for the purpose of returns for income tax for tax year 2018.

    However, the FBR has limited the audit cases selected without the risk-based system to 10 percent of total audits subject to clearance by Member (Taxpayers Audit).