KARACHI: The stock market gained 613 points on Monday amid mixed trading activities during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,872 points as against 39,258 points showing an increase of 613 points.
Analysts at Arif Habib Limited said that the market opened on a positive note with +131 points and added a total of 670 points on the board to almost touch 40K level. The index also realized highest value traded of Rs 26 billion, which was last observed in 2017.
While E&P stocks saw selling pressure, Cement and banking sectors took the lead and carried the momentum. Release of inflation data caused some selling pressure, however, the same improved prospects for banking sector stocks, which are still trading at relatively low level compared with listed manufacturing sector stocks.
Cement sector garnered 125.5 million shares in trading volumes, followed by Technology (51.8 million) and Engineering (45.5 million). Among scrips, MLCF topped the volumes with 34.9 million, followed by POWER (32.5 million) and TRG (29.9 million).
Sectors contributing to the performance include Banks (+169 points), Cement (+126 points), Fertilizer (+39 points), O&GMCs (+37 points) and Pharma (+34 points).
Volumes increased again from 368.7 million shares to 539.3 million shares (+46 percent DoD). Average trade value also increased by 51 percent to reach US$ 154.2 million as against US$ 102.3 million.
Stocks that contributed significantly to the volumes include MLCF< POWER, TRG, PAEL and KEL, which formed 27 percent of total volumes.
Stocks that contributed positively to the index include HBL (+83 points), LUCK (+54 points), TRG (+35 points), ENGRO (+29 points) and UBL (+25 points). Stocks that contributed negatively include MARI (-14 points), PPL (-13 points), POL (-6 points), OGDC (-5 points), and MEBL (-5 points).
KARACHI: The Pak Rupee slipped by 48 paisas against dollar on Monday due to higher demand for the foreign currency at the resumption of trading after Eid holidays.
The rupee ended at Rs167.46 to the dollar from closing on July 30, 2020 at Rs166.98 in interbank foreign exchange market.
Currency experts said that the market witnessed higher demand for the greenback for their payments for import and corporate. They said that the pressure would be eased in coming days due to sufficient inflows were observed during past days.
The State Bank of Pakistan (SBP) last week received $505.5 million from the World Bank.
The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.
Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.
According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.
This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.
ISLAMABAD: World Bank has appointed Najy Benhassine as new Country Director for Pakistan effective August 1. He succeeds Illango Patchamuthu, who completed his term on July 31, a statement said on Monday.
Benhassine most recently served as Regional Director for Equitable Growth, Finance and Institutions in the Middle East and North Africa. Prior to this, he was Director for the Finance, Competitiveness & Innovation Global Practice.
Since joining the World Bank in 2001, he has worked extensively on economic development, finance, private sector development and impact evaluations.
Benhassine’s appointment comes at a time when the government of Pakistan is confronting both the immediate and longer-term health and economic impacts of the COVID-19 crisis.
“It is critical that we help protect the lives and livelihoods of the people of Pakistan and support economic recovery in the wake of the COVID-19 pandemic,” said Benhassine.
“My first priority is to ensure that World Bank support helps to not only alleviate the immediate health and economic impacts of the crisis but at the same time support the Government’s ambitious social and economic reform program to promote a more resilient and inclusive economy so that Pakistan can build back better.”
The World Bank portfolio in Pakistan includes 56 active projects amounting to approximately $11 billion.
The portfolio supports reforms and investments to strengthen institutions, particularly in fiscal management and human development; multi-sectoral initiatives in children’s nutrition, education and skills, irrigated agriculture, tourism, disaster risk management, and urban development; and clean energy, and social and financial inclusion.
The World Bank is supporting the government of Pakistan through COVID-19 emergency response projects totaling almost half a billion to help the country prevent, detect and respond to the pandemic and strengthen public health preparedness.
ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 9.3 percent on Year-on-Year (YoY) basis in July 2020, according to data released by Pakistan Bureau of Statistics (PBS) on Monday.
The latest increase was compared to an increase of 8.6 percent in the previous month and 8.4 percent in July 2019.
On month-on-month (MoM) basis, it increased by 2.5 percent in July 2020 as compared to an increase of 0.8 percent in the previous month and an increase of 1.8 percent in July 2019.
CPI inflation Urban, increased by 7.8 percent on year-on-year basis in July 2020 as compared to an increase of 7.6 percent in the previous month and 8.7 percent in July 2019.
On month-on-month basis, it increased by 2.2 percent in July 2020 as compared to an increase of 0.7 percent in the previous month and an increase of 2.0 percent in July 2019.
CPI inflation Rural, increased by 11.5 percent on year-on-year basis in July 2020 as compared to an increase of 10.0 percent in the previous month and 7.9 percent in July 2019.
On month-on-month basis, it increased by 2.9 percent in July 2020 as compared to an increase of 1.0 percent in the previous month and an increase of 1.6 percent in July 2019.
Sensitive Price Indicator (SPI) inflation on YoY increased by 13.5 percent in July 2020 as compared to an increase of 11.5 percent a month earlier and an increase of 8.9 percent in July 2019.
On MoM basis, it increased by 2.8 percent in July 2020 as compared to an increase of 1.4 percent a month earlier and an increase of 1.0 percent in July 2019.
Wholesale Price Indicator (WPI) inflation on YoY basis increased by 3.2 percent in July 2020 as compared to an increase of 0.9 percent a month earlier and an increase of 13.3 percent in July 2019.
WPI inflation on MoM basis increased by 5.4 percent in July 2020 as compared to a decrease of 0.3 percent a month earlier and an increase of 3.1 percent in corresponding month of last year i.e. July 2019.
ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax card for dividend income to be applicable during Tax Year 2021 (2020-2021).
The FBR issued the withholding tax card 2020-2021 (updated up to June 30, 2020) after incorporating amendments made to Income Tax Ordinance, 2001 through Finance Act, 2020.
Under Section 150 of Income Tax Ordinance, 2001, every person paying dividend shall collect/deduct withholding tax at prescribed rates from recipient of dividend at the time the dividend is actually paid.
The tax shall be final under section 5 read with section 8 of the Income Tax Ordinance, 2001.
According to the updated withholding tax card:
Tax shall be deducted on the gross amount of dividend paid:
(a) In the case of dividend paid by Independent Power Purchasers (IPPs) whereas such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity:
The tax rate shall be 7.5 percent and 15 percent for persons not appearing on Active Taxpayers List (ATL).
(b) In mutual funds and cases other than mentioned at (a) above and (ba) below
The tax rate shall be 15 percent and 30 percent for persons not appearing on the ATL.
(ba) In case of person receiving dividend from a company where no tax is payable by such company, due to exemption of income or carry forward of business losses under Part-VIII of Chapter-III or claim of tax credits under Part-X of Chapter-III.
The tax rate shall be 25 percent and the rate shall be increased by 100 percent in case the person is not on the ATL.
Return on Investment in Sukuk under Section 150A
Special Purpose Vehicle, Company shall collect / deduct withholding tax at prescribed rates from Sukuk holders on payment of gross amount of return on investment at the time of actual payment
The tax shall be final under section 5AA read with section 8 of the Income Tax Ordinance, 2001.
On Payment of return on investment in Sukuks:
a) In case the Sukuk- holder is a company the tax rate shall be 25 percent and it shall be increased by 100 percent in case persons are not on the ATL.
b) In case the Sukuk – holder is an individual or an association of person, if the return on investment is more than one million, the tax rate shall be 12.5 percent and the rate shall be doubled in case persons not appearing on the ATL.
c) In case the Sukuk – holder is an individual and an association of person, if the return on investment is less than one million, the tax rate shall be 10 percent and will be doubled in case person is not on the ATL.
ISLAMABAD: Federal Board of Revenue (FBR) has issued updated withholding tax card for salary income to be prevailed during Tax Year 2021 (2020-2021).
The FBR issued the withholding tax card 2020-2021 (updated up to June 30, 2020) after incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.
According to the withholding tax card, every person responsible for paying salary to an employee shall deduct tax from the amount paid under Section 149 of Income Tax Ordinance, 2001 as per given rates:
Salary slabs
Tax Rates on salary slabs
01. Where taxable income does not exceeds Rs600,000
0 percent
02. Where taxable income exceeds Rs600,000 but does not exceed Rs1,200,000
5 percent of the amount exceeding Rs600,000
03. Where taxable income exceeds Rs1,200,000 but does not exceeds Rs1,800,000
Rs30,000 plus 10 percent of the amount exceeding Rs1,200,000
04. Where taxable income exceeds Rs1,800,000 but does not exceed Rs2,500,000
Rs90,000 plus 15 percent of the amount exceeding Rs1,800,000
05. Where taxable income exceeds Rs2,500,000 but does not exceed Rs3,500,000
Rs195,000 plus 17.5 percent of the amount exceeding Rs2,500,000
06. where taxable income exceeds Rs3,500,000 but does not exceed Rs5,000,000
Rs370,000 plus 20 percent of the amount exceeding Rs3,500,000
07. Where taxable income exceeds Rs5,000,000 but does not exceed Rs8,000,000
Rs670,000 plus 22.5 percent of the amount exceeding Rs5,000,000
08. where taxable income exceeds Rs8,000,000 but does not exceeds Rs12,000,000
Rs1,345,000 plus 25 percent of the amount exceeding Rs8,000,000
09. Where taxable income exceeds Rs12,000,000 but does not exceed Rs30,000,000
Rs2,345,000 plus 27.5 percent of the amount exceeding Rs12,000,000
10. Where taxable income exceeds Rs30,000,000 but does not exceed Rs50,000,000
Rs7,295,000 plus 30 percent of the amount exceeding Rs30,000,000
11. Where taxable income exceeds Rs50,000,000 but does not exceed Rs75,000,000
Rs13,295,000 plus 32.5 percent of the amount exceeding Rs50,000,000
12. Where taxable income exceeds Rs75,000,000
Rs21,420,000 plus 35 percent of the amount exceeding Rs75,000,000
The FBR further said that under Section 149(3) of the Ordinance, every person responsible for making payment for directorship fee for fee for attending board meeting or such fee by whatever name called shall deduct 20 percent of the gross amount paid.
KARACHI: State Bank of Pakistan (SBP) has said that the banks will observe normal working hours from August 03, 2020.
In a statement issued a day earlier, the central bank said that the SBP will revert to normal office timings from Monday, August 03, 2020.
The timings shall be:
Monday to Thursday: 09:00am to 05:30pm (with prayer/lunch break from 01:30pm to 02:15pm)
Friday: 09:00am to 06:00 pm (with prayer / lunch from 01:00pm to 2:30pm).
The SBP directed all banks, development financial institutions (DFIs) and Microfinance Banks to ensure compliance of the above mentioned timings in letter and spirit.
The bank timings were reduced due to coronavirus pandemic. However, shrinking number of infections in the country the official timings are reverting to normal.
ISLAMABAD: Federal Board of Revenue (FBR) has issued updated withholding tax rates for imported goods. The FBR issued withholding tax card 2020-2021 after incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.
The FBR issued updated withholding tax rates applicable for imported goods under Section 148 of Income Tax ordinance, 2001.
The withholding tax shall be collected by collector of customs from importer of goods at the same time and manner as the customs duty is payable in respect of the goods imported.
The following category of importers shall pay withholding tax rate at one percent of the import value as increased by customs duty, sales tax and federal excise duty and two percent on those importers on appearing on the Active Taxpayers List (ATL):
(i) Persons importing goods classified in Part-I of the Twelfth Schedule
(ii) Industrial undertaking importing remeltable steel (PCT Heading 72.04) and directly reduced iron for its own use;
(iii) Persons importing potassic of Economic Coordination Committee of the Cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004
(iv) Persons importing Urea;
(v) Manufactures covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated 31st December, 2011.
(vi) Persons importing Gold; and
(vii) Persons importing Cotton
(viii) Persons importing LNG
Two percent of the import value as increased by Custom duty, sales tax and federal excise duty and four percent on persons not appearing on ATL shall apply on (ix) persons importing goods classified in Part-II of the Twelfth Schedule.
5.5 percent of the import value as increased by Custom duty, sales tax and federal excise duty and 11 percent on persons not appearing on ATL on (X) persons importing goods classified in Part-III of the Twelfth Schedule.
Industrial undertaking importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use shall pay 1.75 percent withholding tax of the import value as increased by Custom-duty, sales tax and federal excise duty and 3.5 percent for persons not appearing on the ATL.
In case of manufacturers covered under rescinded Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 as it stood on the 28th June, 2019 on import of items covered under the aforementioned S.R.O. The tax rate shall be one percent and two percent in case persons not appearing on the ATL.
In case of persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan. Such persons shall pay four percent and 8 percent in case persons not appearing on the ATL.
Persons Importing Pulses shall pay 2 percent of the import value as increased by Custom-duty, sales tax and federal excise duty and four percent in case persons not appearing on the ATL.
Commercial importers covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated the 31st December, 2011 shall pay 3 percent of the import value as increased by custom-duty sales tax and federal excise duty and six percent in case persons not appearing on the ATL.
Commercial Importer importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use shall pay 4.5 percent of the import value as increased by Custom-duty, sales tax and federal excise duty and 9 percent in case persons not appearing on the ATL.
Persons importing coal shall pay 4 percent and 8 percent in case persons not appearing on the ATL.
Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan as certified by the Drug Regulatory of Pakistan shall pay 4 percent and 8 percent in case persons not appearing on the ATL.
Ship breakers on import of ship shall pay 4.5 percent and 9 percent in case persons not appearing on the ATL.
Industrial undertakings not covered under S.No 1 to 6 shall pay 5.5 percent and 11 percent in case persons not appearing on the ATL.
Companies not covered under S. Nos 1 to 9 shall pay 5.5 percent and 11 percent in case persons not appearing on the ATL.
Persons not covered Under S.Nos1 to 10 shall pay 6 percent and 12 percent in case persons not appearing on the ATL.
On Import of Mobile Phones by any Person (individual, AOP, Company):
Withholding Tax Regime
C&F Value In CBUIn CKD/SKD in USD ($) )
Up to 30 except smart phones
Rs70
Rs0
Exceeding 30 and up to 100 and smart phones up to 100
Rs100
Rs0
Exceeding 100 and up to 200
Rs930
Rs0
Exceeding 200 and up to 350
Rs970
Rs0
Exceeding 350 and up to 500
Rs3,000
Rs5,000
Exceeding 500
Rs5,200
Rs11,500
Persons not appearing in the Active Taxpayers’ List :The applicable tax rate is to be increased by 100% (Rule-1 of Tenth Schedule to the Ordinance).
Section 148(7)
The tax required to be collected under this section shall be minimum tax on the income of importer arising from the imports subject to sub-section (1) of this section and this sub-section shall not apply [i.e Adjustable] in the case of Import of:
a. Raw material, plant, equipment & parts by an industrial undertaking for its own use;
b. motor vehicle in CBU condition by manufacturer of motor vehicle.
c. Large import houses as defined / explained in 148(7)(d)
d. A foreign produced film imported for the purposes of screening and viewing.
The tax collected under this section at the time of import of ships by ship-breakers shall be minimum tax. Section 148(8A).
ISLAMABAD: The officers of Inland Revenue have been empowered to recover non-tax revenue by invoking provisions of Income Tax Ordinance, 2001.
The finance ministry has issued Public Finance Management Act, 2019, which was amended up to June 30, 2020 through Finance Act, 2020.
According to Section 40E of the Act, a commissioner of Inland Revenue has been empowered to make recovery of non-tax revenue.
“40E. Recovery of non-tax revenue by Commissioner (Inland Revenue).-
(1) If the amounts as per sections 40B and 40D are not paid within ninety days of having been due, the Finance Division, in consultation with the concerned Division may refer any defaulter’s case to the Commissioner (Inland Revenue) concerned for recovery as it were an arrear of income tax.
(2) The Commissioner (Inland Revenue) shall recover the arrear in accordance with the provisions of the Income Tax Ordinance, 2001(XLIX of 2001) and deposit the receipt in the Federal Consolidated Fund as per section 40C.”
Section 40B. Levy and collection.
(1) Non tax revenue shall be levied and charged in accordance with the provisions of relevant laws and such other applicable instruments.
(2) Notwithstanding anything to the contrary contained in any other law for the time being in force, public entities as defined under section 36 shall pay non tax revenue representing-
(a) mark up on loans lent by the Government, as per the amortization schedule attached with the financing agreement;
(b) dividend against the Government’s equity investments as declared by the respective board of directors out of accrued profits of the entity:
Provided that if public entity is wholly or substantially owned by the Government, proposals with regard to declaration of dividend and allocation for reserve fund, capital requirements etc shall be examined by the controlling Division in consultation with the Finance Division before deliberations and decision in the board of directors.
(c) surplus profits as per the provisions of relevant laws; and
(d) any other amount owed to the Government as accrued:
Provided that the public entities shall pay accrued amounts of non-tax revenue as per clauses (a) to (d) being the first charge on their gross revenues or profits, as the case may be.
(3) Non tax revenue representing foreign grants and payments, receipts from provision of services, rents, recovery of over-payments, sale of property etc shall accrue on completion of the prescribed process.
(4) The revenue collection offices shall be responsible for collection of all the accrued amounts of non tax revenue from liable public entities, individuals, firms, companies etc as per the time specified in the relevant laws and rules. Finance Division shall prescribe procedures for monitoring and reporting of non tax revenue by the revenue collection offices.
Section 40D. Late payment surcharge.-
(1) Notwithstanding anything to the contrary contained in any other law for the time being in force, an amount equal to monthly weighted financing cost of Government’s domestic borrowings shall be payable during the period of default, in addition to the amount due under section 40B, if not paid within the stipulated time.
(2) Finance Division may prescribe procedure for levy and collection of the surcharge under sub-section (1).
