Pkrevenue.com

Month: September 2020

  • Foreign exchange reserves ease to $19.904 billion

    Foreign exchange reserves ease to $19.904 billion

    KARACHI: The liquid foreign exchange reserves of the country fell by $55 million to $19.904 billion by week ended September 18, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $19.959 billion by week ended September 11, 2020.

    The foreign exchange reserves held by the central bank declined by $118 million to $12.702 billion by week ended September 18, 2020 as compared with $12.82 billion a week ago.

    The SBP attributed to decline in reserves to external debt repayment of the country.

    However, the reserves held by commercial banks increased by $63 to $7.202 billion by week ended September 18, 2020 as compared with $7.139 billion a week ago.

  • Index slips by 70 points amid heavy selling

    Index slips by 70 points amid heavy selling

    KARACHI: The stock market fell by 70 points on Thursday as the market witnessed heavy selling during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,806 points as against 41,876 points showing a decline of 70 points.

    Analysts at Arif Habib Limited said that the market had a field day bearing heavy selling pressure during the session, particularly on Cement, E&P, and Banking sector stocks that brought the index down by 459 points.

    Recovery set in by mid-day, which brought the index level back up and closed the session -70 points.

    Settlement of rollover trades, apprehensions on rising Corona related cases as well as weak investor sentiment in international markets caused local investors to stay cautious as well.

    Cement sector registered trading volumes of 53.5 million shares, followed by Power (49.3 million) and Technology (43.3 million). Among scrips, KEL topped the volumes with 40 million shares, followed by UNITY (33.1 million) and HASCOL (32.1 million).

    Sectors contributing to the performance include E&P (-86 points), Food (-20 points), Power (-16 points), Fertilizer (+69 points) and Cement (+18 points).

    Volumes dropped from 582.8 million shares to 434.9 million shares (-25 percent DoD). Average traded value however increased by 17 percent to reach US$ 91 million as against US$ 77.6 million.

    Stocks that contributed significantly to the volumes include KEL, UNITY, HASCOL, POWER and PIBTL, which formed 33 percent of total volumes.

    Stocks that contributed positively to the index include ENGRO (+36 points), EFERT (+24 points), FFC (+15 points), LUCK (+15 points) and PSO (+14 points). Stocks that contributed negatively include OGDC (-48 points), PPL (-33 points), TRG (-20 points), NESTLE (-14 points) and BAFL (-11 points).

  • SBP relaxes 100pc cash margin condition on import of certain raw materials

    SBP relaxes 100pc cash margin condition on import of certain raw materials

    KARACHI: The State Bank of Pakistan (SBP) on Thursday relaxed the condition of 100 percent cash margin requirement on import of certain raw materials.

    A statement issued by the SBP stated that it had eased 100 percent cash margin requirement on the import of certain raw materials to support manufacturing and industrial sectors and further enhance their capacity to contribute towards the recovery of the economy in post COVID-19 era.

    The cash margin condition was initially imposed in 2017 on 404 HS Codes and later in 2018 on a further 131 items, with a view to contain the import of mostly consumer goods and to allow room for the import of more growth-inducing items.

    Considering the challenges posed by the COVID-19 to the manufacturing sector and other economic segments, and on the representations made by various businesses and associations, the SBP re-evaluated the cash margin requirements and decided to remove this requirement on 106 items/HS Codes.

    The removal of the cash margin requirements on these items will support businesses’ cash flows and liquidity, by freeing up funds previously held with the banks under cash margin against imports, and route these funds towards avenues of growth and development that will benefit the economy.

    The SBP remains committed to facilitate industries and businesses in contributing to the growth and development of the country, and is ready to take any further actions required to support the overall manufacturing and industrial activity.

  • Fake, flying invoices: IR intelligence unearths mega sales tax evasion

    Fake, flying invoices: IR intelligence unearths mega sales tax evasion

    ISLAMABAD: The Directorate of Intelligence and Investigation, Inland Revenue, Faisalabad has unearthed huge sales tax evasion and arrested culprits for issuing fake and flying invoices.

    A spokesman of Federal Board of Revenue (FBR) on Wednesday said that I&I IR Faisalabad had arrested proprietor of M/s SAYTEX INTERNATIONAL, one of the major culprits running the racket of fake and flying invoices, causing huge loss of revenue to the national exchequer.

    The directorate unearthed a big sales tax evasion scam of issuing/adjusting fake and flying invoices involving tax fraud of millions of rupees.

    Accordingly, prosecution proceedings against the members of the fraudsters’ gang were initiated and the First Information Report (FIR) was lodged against M/s Arrow International, its buyers, suppliers and other beneficiaries under section 37(a) of the Sales Tax Act 1990.

    The person arrested had issued fake invoices worth 104.446 million to M/s Arrow International and thus defrauded payment of due taxes thereon.

    Imran Zafar, Deputy Director, who arrested the accused has obtained physical remand of the accused from the learned Special Judge (Customs, Taxation & Anti-Smuggling), Lahore. The accused is currently under further investigation.

    Investigation from arrested persons subsequently led the Intelligence and Investigation Directorate to identification of real culprits behind establishment and running of this network of tax fraudsters involving 65 units and total invoice value amounts to Rs.1.3 billion.

  • FBR extends utilization period of input goods under export schemes

    FBR extends utilization period of input goods under export schemes

    ISLAMABAD: Federal Board of Revenue (FBR) has extended the utilization period of input goods under export facilitation schemes up to February 28, 2021 for all three schemes that are Manufacturing Bond, Export Oriented Units and Export Processing Zones, a statement said on Wednesday.

    A FBR spokesman said that this measure would ensure that the feared losses of these exporters due to Covid-19 Pandemic wherein orders were either cancelled or delayed shall be addressed.

    Pakistan Customs (FBR) is committed to achieve the vision of Prime Minister for exporter’s facilitation and addressing their genuine hardships on a proactive basis at their doorsteps.

    Such steps shall boost exports and will result in trade facilitation by ensuring competitiveness of our exported goods in international markets.

  • SBP sells Rs478 billion worth treasury bills through auction

    SBP sells Rs478 billion worth treasury bills through auction

    KARACHI: The government has borrowed an amount of Rs474.8 billion through sale of market treasure bills on Wednesday.

    The State Bank of Pakistan (SBP) said that bids were invited for the auction of 3-, 6- and 12-month maturities. The auction target was Rs450 billion.

    The auction witnessed aggressive participation of the banks as the central bank received total bids amounting Rs918.47 billion (face value) for all the three maturities.

    The central bank accepted bids worth Rs474.8 billion in the sale of treasury bills.

    The SBP accepted Rs113.8 billion against offered amount of Rs490.9 billion in three-month treasury bills. The cut-off yield for the paper was 7.1292 percent.

    The central bank accepted bids of Rs192 billion against the offer of Rs239.57 billion in six-month treasury bills. The cut-off yield was at 7.18 percent.

    The SBP accepted Rs169 billion against the offer of Rs188 billion in 12-month treasury bills. The cut-off yield was at 7.3090 percent.

    Experts said that the banks were desperate to invest in government papers due to sufficient liquidity available with them.

    The government borrowed funds through sale of treasury bills for budget financing.

  • FBR introduces income tax return form in Urdu language

    FBR introduces income tax return form in Urdu language

    ISLAMABAD: Federal Board of Revenue (FBR) has introduced income tax return form in Urdu language in order to facilitate taxpayers, a FBR spokesman said on Wednesday.

    The spokesman said that on the vision of the Prime Minister to facilitate taxpayers and on the directives of Advisor to Prime Minister on Finance and Revenue, the FBR had introduced income tax return forms in the national language.

    The FBR introduced tax return forms in a wizard view for salaried persons and a simplified one-page tax return and one-page wealth statement issued in Urdu language.

    These return forms in Urdu language are available on the IRIS portal, the spokesman said.

    The spokesman said that to facilitate other taxpayers the FBR was also in process of preparing other return forms and mobile phone application Tax Asaan in Urdu language. These forms will be available soon on the FBR web portal, the spokesman added.

  • Boycott against foodpanda expands to major cities

    Boycott against foodpanda expands to major cities

    KARACHI: Restaurant owners of major cities of the country have joined boycott against foodpanda as food delivery company failed to negotiate, a statement said on Wednesday.

    The All Pakistan Restaurant Association (APRA), after successful boycott in Karachi of foodpanda, has now started protest in Punjab province and restaurants owners of Lahore, Islamabad and other cities, have joined the protest, the statement said.

    APRA chairman, Muhammad Naeem Siddiqui pointed out that foodpanda has started putting more pressure on restaurants after boycotting its services and threatened that it would not deliver the food if 30 percent commission was not paid.

    “APRA has strongly protested the imposition of a 30 percent self-imposed commission on restaurants, calling it against the rules of the Competition Commission of Pakistan and the CCP is asked to play its role in ending the food panda monopoly and malpractices so that all food delivery companies have equal business opportunities”, he said.

    Chairman APRA, after consultation with the Islamabad Restaurant Association (IRA), Lahore Restaurant Association (LRA) and Lahore Restaurant Unity Association, subjected to certain conditions for the restoration of foodpanda’s services.

    The conditions are:

    Restaurants should be allowed to deliver foodpanda orders directly through their own riders.

    There should be standardized commission structure for all brands.

    Customer data should be shared with restaurants.

    Restaurants should not be threatened with commission increases, otherwise they will be closed.

    Exclusive agreement should not be signed with any restaurant as it’s against competition laws.

    Chairman APRA warned, if their demands will not meet, they will continue foodpanda boycott.

  • Regulatory duty, additional customs duty withdrawn on various textile products

    Regulatory duty, additional customs duty withdrawn on various textile products

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved withdrawal of regulatory duty and additional customs duty on various textile products.

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  • NCCPL announces collection of capital gain tax on September 30

    NCCPL announces collection of capital gain tax on September 30

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday announced that it will collect/deduct capital gain tax (CGT) for the period of July – August on September 30, 2020.

    In a letter to Pakistan Stock Exchange (PSX), the NCCPL said that the aggregate amount of CGT arising on disposal of shares at Pakistan Stock Exchange (PSX) for the period July 01, 2020 to August 31, 2020, would be collected on Wednesday September 30, 2020 through respective settling banks of the Clearing Members.

    All Clearing Members have been asked to ensure requisite amount in their respective settling bank’s account. Necessary details and reports for the period have already been made available in the CGT System, the NCCPL said.

    Further, the aggregate amount of CGT arising on trading of future commodity contracts at Pakistan Mercantile Exchange for the period July 01, 2020 to August 31, 2020, would also be collected from the Pakistan Mercantile Exchange on Wednesday September 30, 2020.

    The NCCPL advised clearing members and Pakistan Mercantile Exchange are hereby requested to verify the investor wise details of capital gain or loss and tax thereon, if any, through reports/downloads.

    In case of none or partial collection of CGT, necessary action would be taken in accordance with the Rules and NCCPL Regulations, it warned.