Pkrevenue.com

Month: September 2020

  • Textile exports fall to $2.28bn in July-August

    Textile exports fall to $2.28bn in July-August

    KARACHI: Textile exports have fallen by one percent to $2.28 billion during first two months of current fiscal year as compared with $2.3 billion in the corresponding period of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

    Major component of textile exports have witnessed growth during the period.

    The export of knitwear grew by 4.43 percent to $564.29 million during July – August 2020 of the current fiscal year as compared with $540 million in the corresponding period of the last fiscal year.

    The export of bed wear increased by 6 percent to $424.18 million during first two months of the current fiscal year as compared with $400.44 million in the same month of the last year.

    The export of readymade garments grew by 2 percent to $477 million during July – August 2020 as compared with $467 million in the same period of the last fiscal year.

  • 71pc return filing companies declare income below Rs500,000

    71pc return filing companies declare income below Rs500,000

    The Federal Board of Revenue (FBR) has revealed that a staggering 71 percent of corporate return-filing entities declared annual income of less than Rs500,000 for tax year 2018. This alarming figure points to a serious compliance and revenue generation gap within Pakistan’s corporate sector.

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  • Iran ready for barter trade with Pakistan

    Iran ready for barter trade with Pakistan

    KARACHI: Iran is ready for barter trade with Pakistan to strengthen the economic ties between the two neighboring countries. Iranian Consul General Reza Nazeri has stressed the need for strengthening trade ties between two neighboring countries, saying Iran is ready for barter trade and it will export petrochemical, steel and LPG to Pakistan while importing rice, meat and other agriculture products from Pakistan.

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  • Highest number of returns filed by persons below threshold income

    Highest number of returns filed by persons below threshold income

    ISLAMABAD – The Federal Board of Revenue (FBR) has published its analysis of income tax returns for the tax year 2018, shedding light on the categories of taxpayers and their income brackets. The report reveals that the largest number of tax returns were submitted by individuals whose income fell below the taxable threshold.

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  • Salaried persons share 42 percent in total return filing

    Salaried persons share 42 percent in total return filing

    ISLAMABAD: Salaried persons have shared 42.12 percent of total income tax return filing with the Federal Board of Revenue (FBR), and they are second largest contributors in return filing after non-salaried individuals.

    According to a directory for tax year 2018 issued by the FBR a day earlier showed that the salaried persons filed 1.2 million income tax returns for the tax year ending June 30, 2018.

    The filing of the tax return by the salaried persons is 42.12 percent out of total returns 2.85 million filed for the tax year.

    Non-salaried individuals are the top contributors in return filing for the tax year under review. The non-salaried individuals filed 1.52 million income tax returns, which was 54 percent of total return filing during the tax year under review,

    Association of Persons (AOPs) filed 64,336 returns and companies only filed 44,609 returns, which are 2.26 percent and 1.56 percent, respectively out of total return filing.

    When analyzed the collection of taxes for the year, the companies contributed 55.84 percent in revenue collection. The share of non-salaried individuals in revenue collection was 21 percent. The salaried persons contributed 14.66 percent in revenue collection. The AOPs shared only 8.9 percent to the total revenue collection.

  • Weekly Review: MPS to move stock market

    Weekly Review: MPS to move stock market

    KARACHI: The State Bank of Pakistan (SBP) is scheduled to issue monetary policy statement (MPS) on September 21, 2020 which will move the stock market during the next week.

    Analysts at Arif Habib Limited said that with SBP’s Monetary Policy Committee (MPC) expected to maintain a status quo stance, they expect the monetary policy announcement on Monday (September 21, 2020) to be a non-event for the market.

    In addition, expectations of PM Khan delivering another fiery speech at the UN General Assembly on September 25, 2020, fortifying Pakistan on the global map, should also aid sentiments.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.7x (2021) compared to Asia Pac regional average of 14.0x and while offering DY of ~5.9 percent versus ~2.7 percent offered by the region.

    Uncertainty over approval of FATF bills in the Parliament together with pressure on International oil prices during earlier part of the week perturbed sentiment at the domestic equity bourse.

    In addition, investors adopted a hibernation policy prior to next week’s Monetary Policy meeting (marking end of a 3 month hiatus by the SBP), which kept the volumes dry. Thus, the market closed down by 26 points WoW / -0.1 percent WoW to 42,505 level.

    Sector-wise negative contributions came from i) Insurance (47 points), ii) Commercial banks (38 points), iii) Power generation and distribution (37 points), iv) Tobacco (28 points), and v) Textile composite (25 points). Whereas positive sectoral contributions were led by i) E&P (61 points), ii) Chemical (25 points), and iii) Food and personal care products (21 points). Scrip-wise main laggards were: TRG (27 points), PPL (26 points), PAKT (25 points), KAPCO (25 points) and HBL (24 points).

    Foreigners offloaded stocks worth of USD 1.69 million compared to a net sell of USD 4.40 million last week. Major selling was witnessed in Commercial Banks (USD 2.41 million) and Food and personal Care Products (USD 2.32 million). On the local front, buying was reported by Insurance Companies (USD 10.56 million) followed by Mutual Funds (USD 3.56 million). That said, Average volumes settled at 537 million shares (down by a 28 percent WoW). While average value traded clocked-in at USD 93 million (depicting a decline of by 35 percent WoW).

  • Pakistan Customs makes seizures of Rs10.36bn in 2 ½ months

    Pakistan Customs makes seizures of Rs10.36bn in 2 ½ months

    KARACHI: Pakistan Customs has accelerated operation against smuggling and non-duty paid items and made seizure of goods and vehicles valuing Rs10.36 billion during two and a half months of the current fiscal year.

    The seizure during the current period of the current fiscal year is 91.4 percent higher than the seizure of Rs5.41 billion made in the corresponding period of the last fiscal year.

    This was disclosed by chief collector of customs enforcement-south at a press conference here on Friday.

    The chief collector south said that the customs seized goods worth Rs36.57 billion in fiscal year 2019/2020 as against the seizure of Rs25.39 billion in the preceding fiscal year, showing an increase of 44 percent.

    He said that the collectorate south contributed the anti-smuggling and action against non-duty paid items to the tune of Rs1.18 billion during the period of July 01 to September 15, 2020 as compared with Rs958 million in the same period of the last fiscal year, showing an increase of 23 percent.

    Whereas, the value of seizures of South in fiscal year 2019/2020 was amounted to Rs12.25 billion as against seizures of Rs2.74 billion in the preceding fiscal year, registering an increase of 347 percent.

    Smuggled vehicles involving value of Rs539 million were seized in the fiscal year 2019/2020 as against Rs358 million in the preceding fiscal year.

    The major seized items including vehicles, electronics, cigarettes, cloth, diesel, mobile phones, currency, betel nuts, gutka etc.

    The collector said that Pakistan Customs collected customs duty to the tune of Rs624.65 billion in 2019/2020, which was 99 percent of the assigned target by the Federal Board of Revenue (FBR) for the fiscal year.

    Furthermore, the collection of customs duty was at Rs92 billion during July – August 2020 as against the assigned target of Rs87 billion.

    The collection of all taxes at import stage was amounted at Rs1,710 billion in fiscal year 2019/2020 which was 0.3 percent less than the preceding fiscal year.

    Total tax collection of all taxes during July 01 to September 15, 2020 was at Rs347 billion, which is 1.39 percent more than the tax collected in the corresponding period of the last fiscal year.

    During July – August 2020, the customs formation south collected customs duty amounting Rs76.38 billion against the target of Rs74 billion and against collection of Rs83.69 billion in 2019, the collector added.

  • Tax Directory: FBR Issues Details of Tax Payment by Members of Upper, Lower Houses

    Tax Directory: FBR Issues Details of Tax Payment by Members of Upper, Lower Houses

    In a move aimed at promoting transparency and accountability, the Federal Board of Revenue (FBR) has officially released the latest Tax Directory of Parliamentarians, detailing the tax payments made by members of both the National Assembly and the Senate.

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  • FBR selects 10,441 income tax audit cases through computer balloting

    FBR selects 10,441 income tax audit cases through computer balloting

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday selected 10,441 cases of income tax for audit of tax year 2018.

    The FBR conducted computerized balloting for selection of cases under Audit Policy 2019, which was recently released.

    As many as 10,441 Income Tax cases were chosen through balloting for audit whereas the board selected 2065 Sales Tax Cases and 27 Federal Excise Duty case for the audit through this process.

    Advisor to Prime Minster on Finance and Revenue, Dr. Abdul Hafeez Shaikh witnessed the balloting ceremony.

    On the occasion the advisor said that promoting transparency through automation and digitalization in tax collection system of FBR was a prime agenda of the government.

    For this purpose, he said, the FBR has made public the tax payers’ information and published the taxpayers’ directory which contains tax record of individuals and parliamentarian and could be accessed by common masses, he said while launching the Taxpayers Directory and Computerized Balloting for Audit 2018 here.

    Chairman FBR Javed Ghani, representatives of business community and other officials of the board were also present on the occasion.

    The Advisor said that only 0.76 percent cases were selected for audit with an aim to involve minimum number of taxpayers.

    He said that last year around 14000 cases were selected but the audit remained inconclusive due to excessive number of cases, hence this year around ten thousand cases were selected only.

    While talking about tax refunds, the advisor said Rs 240 billion refunds were paid to the industrialist in fiscal year 2019-20, more than double as compare to the previous fiscal year.

    He said that out of total out Rs 40 billon income tax refunds, around 28 billion were paid while the remaining Rs12 billion would be paid this year.

    The advisor said that the government wanted coordination with the business community for resolving their issues. “We want to facilitate the industrial sector and provide it all facilities to reduce its cost of doing business to increase the country’s exports.”

    He added that the lowering the cost of doing business was a priority of the government to provide competitiveness to the local industrial sector in international market for increasing country’s exports.

    He said that industrial growth leads to enhanced exports and thereby create employment opportunities in the country.

    The advisor said that export sector performed good in July even when the country has been passing through in challenging times amid COVID- 19 pandemic.

    Hafeez Shaikh highlighted the importance of promoting tax culture, saying that the taxes enable the government to carry forward development agenda and initiate development projects of infrastructure, health and education.

    Speaking on the occasion, Chairman FBR Javed Ghani said the board launched the tax payer directory of parliamentarian and other individual to public the date of taxpayers for maintaining the transparency.

    He said that transparency and automation was the top priority of the FBR for broadening the tax net to growth in the country’s economy.

  • FBR issues rules for duty free import of minimum value goods

    FBR issues rules for duty free import of minimum value goods

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday issued rules for duty free minimum value of goods imported through courier and postal service.

    The FBR issued SRO 886(I)/2020 to notify draft amendment to Customs Rules, 2001.

    Through the draft amendment the FBR issued ‘Deminimis rules for imported goods’, which shall apply to the goods imported through post service and air courier only.

    “De minimis value’ means the value of goods up to five thousand rupees in terms of the provisions of Section 19C of the Customs Act, 1969.

    The FBR said that for the purpose of application of the provisions of Section 19C of the Customs Act, 1969, the value mentioned on label of the postal good or the courier receipt shall be considered as the declared value.

    Further, for conversion of invoice value into Pak Rupee, the postal or courier authorities shall take the official exchange rate of the previous day.

    The postal or courier authorities shall submit a separate list of goods along with invoices and other documents, if any, wherein the declared value is up to five thousand rupees.

    The customs authorities shall scrutinize the list and shall have the right to examine or detain any goods to verify the declared value or compliance to the requirement of any other law applicable thereon.

    The postal or courier authorities shall submit a consolidated monthly e-statement of all such clearance along with copies of invoice of the imported goods cleared under the rules to the concerned customs authorities for re-conciliation of the record.