Pkrevenue.com

Month: November 2020

  • Diesel oil price hiked by Rs4/liter

    Diesel oil price hiked by Rs4/liter

    ISLAMABAD: The government has increase the price of high speed diesel oil by Rs4 per liter. The prices of other POL products have been kept unchanged for next fortnight with effect from December 01, 2020, a statement said on Monday.

    The government in its endeavor to provide maximum relief to the public has decided to absorb most of the increase in international prices of petroleum products, the statement said.

    The prices of MS (Petrol), Kerosene (SKO) and Light Diesel Oil would remain the same w.e.f. 01 December 2020 for the next fifteen days.

    However, due to significant increase in the international price of High Speed Diesel (HSD), the price of High Speed Diesel has been increased by Rs. 4.00 per liter for the same period.

    The price of high speed diesel has been increased to Rs105.43 per liter from Rs104.43.

    The prices of MS (Petrol) at Rs100.69; Kerosene (SKO) at Rs65.29, ant Light Diesel Oil at Rs62.86 have been kept unchanged for next fortnight.

    POL prices increased up to Rs3.10/liter
  • SBP makes mandatory for banks to construct ramps for disable persons

    SBP makes mandatory for banks to construct ramps for disable persons

    KARACHI: State Bank of Pakistan (SBP) on Monday made it mandatory for all banks to construct ramps at their branches for persons with disabilities.

    The SBP said it had decided to make it mandatory for all banks/ MFBs/ DFIs to construct ramps at all newly opened and existing place of business (excluding Mobile Banking Units) to make it accessible for persons with disabilities and wheelchair users.

    For the purpose, a 2-year time-bound action plan to construct ramps at your all-existing places of business shall be submitted to SBP by December 31, 2020.

    In addition, a senior level management committee of the respective banks, MFBs and DFIs shall be constituted who will be responsible for monitoring the overall progress on the action plan.

    Further, the quarterly implementation report should be submitted within 15 days after the end of each quarter.

    The SBP further said that instructions issued vide CPD Circular No. 06 of 2014 requiring banks/MFBs to provide visually impaired/blind persons with equitable access to banking and financial services, the banks have also been advised to submit the compliance status by December 31, 2020.

  • Stock market gains 262 points despite early day losses

    Stock market gains 262 points despite early day losses

    KARACHI: The stock exchange gained 262 points on Monday after making recovery from early day losses.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,069 points as against 40,807 points showing an increase 262 points.

    Analysts at Arif Habib Limited said that the market opened on a negative note with -24 points and slipped a total of 137 points during the session, before Banking sector took the front seat and drove the index to recover the intra-day loss and put together an increase of 308 points. The index closed +262 points.

    MSCI semi-annual index review changes, which were made earlier in the month, had today as the effective date. Resultantly, MCB among banking sector and OGDC, PPL among E&P sector saw brisk activity.

    PSO also reacted to the prospect of share swap arrangement as proposed by the Petroleum Division to settle Circular debt among public sector entities in the energy chain.

    Although, international crude oil prices were down on the concerns of OPEC+ meeting scheduled for tomorrow, where deferment of oil supply till Q1, 2021 will be taken.

    Among scrips, HUMNL topped the volumes with 88.5 million shares, followed by TRG (31.7 million) and PRL (24.7 million).

    Sectors contributing to the performance include Technology (+57 points), Banks (+50 points), O&GMCs (+48 points), Cement (+36 points) and E&P (+25 points).

    Volumes declined from 397.8 million shares to 388.6 million shares (-2 percent DoD). Average traded value however, increased by 7 percent to reach US$ 88.2 million as against US$ 82.5 million.

    Stocks that contributed significantly to the volumes include HUMNL, TRG, PRL, KEL and UNITY, which formed 47 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+49 points), PSO (+39 points), MCB (+22 points), UBL (+20 points) and LUCK (+20 points). Stocks that contributed negatively include BAHL (-16 points), ENGRO (-16 points), PAKT (-11 points), FFC (-11 points) and KEL (-7 points).

  • Rupee gains four paisas against dollar

    Rupee gains four paisas against dollar

    KARACHI: The Pak Rupee gained four paisas against the dollar on Monday despite demand for import and corporate payments.

    The rupee ended Rs159.42 to the dollar form last Friday’s close of Rs159.46 in the interbank foreign exchange market.

    Currency dealers said that the market witnessed demand for the dollars because of the first trading day of the week and the market opened after two weekly holidays.

    They said that the supply of the greenback was sufficient to offset the demand and helped the local currency to make gain.

    The dealers said that the local currency likely to make gain in coming days owing to improved economic indicators, including the foreign exchange reserves of the country.

    The liquid foreign exchange reserves of the country have increased by $467 million to $20.552 billion by week ended November 20, 2020. The foreign exchange reserves of the country were at $20.085 billion by week ended November 13, 2020.

    The official reserves of the SBP increased by $484 million to $13.415 billion by week ended November 20, 2020 as against $12.931 billion a week ago. The SBP attributed the increase to official government inflows.

  • Updated ATL: FBR receives record 2.96 million returns

    Updated ATL: FBR receives record 2.96 million returns

    ISLAMABAD: The filing of income tax return has reached a new peak of 2.96 million, according to the updated Active Taxpayers List (ATL) issued by Federal Board of Revenue (FBR) on Monday.

    (more…)
  • Customs e-commerce clearance facility lauded

    Customs e-commerce clearance facility lauded

    KARACHI: Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has lauded the efforts of Pakistan Customs for establishing an e-commerce clearance facility in collaboration with the State Bank of Pakistan (SBP).

    (more…)
  • ITO-2001 defines resident, non-resident persons

    ITO-2001 defines resident, non-resident persons

    ISLAMABAD: Income Tax Ordinance, 2001 has defined resident and non-resident Pakistan for the purpose of apply rate of income tax on domestic source of income.

    The Federal Board of Revenue (FBR) issued ITO 2001 (updated June 30, 2020) and differentiated residents and non-resident Pakistanis.

    Various sections of Income Tax Ordinance, 2001 explains the definition:

    Section 81. Resident and non-resident persons

    Sub-section (1): A person shall be a resident person for a tax year if the person is —

    (a) a resident individual, resident company or resident association of persons for the year; or

    (b) the Federal Government.

    Sub-section (2): A person shall be a non-resident person for a tax year if the person is not a resident person for that year.

    Section 82 – Resident individual: — An individual shall be a resident individual for a tax year if the individual —

    (a) is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and eighty-three days or more in the tax year;

    (ab) is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and twenty days or more in the tax year and, in the four years preceding the tax year, has been in Pakistan for a period of, or periods amounting in aggregate to, three hundred and sixty-five days or more; or

    (c) is an employee or official of the Federal Government or a Provincial Government posted abroad in the tax year.

    Section 83 – Resident company: A company shall be a resident company for a tax year if —

    (a) it is incorporated or formed by or under any law in force in Pakistan;

    (b) the control and management of the affairs of the company is situated wholly in Pakistan at any time in the year; or

    (c) it is a Provincial Government or Local Government in Pakistan.

    Section 84 – Resident association of persons: — An association of persons shall be a resident association of persons for a tax year if the control and management of the affairs of the association is situated wholly or partly in Pakistan at any time in the year.

  • PTBA urges form issuance for updating taxpayers’ profile

    PTBA urges form issuance for updating taxpayers’ profile

    ISLAMABAD: Pakistan Tax Bar Association (PTBA) has urged the Federal Board of Revenue (FBR) to launch form for mandatory profile update by registered taxpayers as compliance date is fast approaching.

    The PTBA on November 13, 2020 sent a letter to Muhammad Javed Ghani, Chairman, FBR, urging him to publicize prescribed form for updating business profile by taxpayers under section 114A of Income Tax Ordinance, 2001.

    “The PTBA had tried to highlight this issue on September 26, 2020 but unfortunately no action whatsoever has been taken by the FBR authorities in this regard,” the PTBA said.

    An important amendment was made through Finance Act, 2020 regarding updation of business profile by the taxpayers under section 114A of the Ordinance, 2001 but not specific prescribed form for the purpose is still introduced by the FBR.

    “It is very unfortunate for the PTBA that why said prescribed form is still not publicized by the concerned FBR authorities because it is also a time consuming work for the taxpayers / tax consultants and last date for updating the same is December 31, 2020 as per provisions of law.”

    The PTBA also highlighted the issue of calculation errors of minimum tax for tax year 2020.

    “The last date for submission of return has been notified as December 08, 2020 and till the settlement of issue regarding determination of minimum tax liability, the taxpayers would not be able to submit returns within due date, so action in this regard be taken at priority basis otherwise PTBA would have no other option but to ask for further extension for which the body of PTBA is not desirous.”

    The PTBA said the scheme of the Income Tax Ordinance, 2001 is based on universal self assessment. “Self assessment does not mean only assessment of income, rather assessment of tax liability is also not only the prerogative and right but also obligation of the taxpayer,” the PTBA said, adding that the relevant columns related to attributable taxable income against minimum tax liability which have been blocked in the portal be opened for the taxpayers to incorporate his/its own attributable income as the said option has been provided in the columns related to tax collections made under section 148 of the Income Tax Ordinance, 2001.

  • SBP directs banks to extend working hours for duty, tax collection

    SBP directs banks to extend working hours for duty, tax collection

    KARACHI: State Bank of Pakistan (SBP) on Sunday directed all banks to observe extended working hours to facilitate collection of duty and taxes on Monday November 30, 2020.

    A notification issued by the central bank, stated that in order to facilitate the collection of government receipts / duties / taxes, it has been decided that the field offices of SBP Banking Services Corporation (SBP-BSC) and authorized branches of National Bank of Pakistan (NBP) will observe extended banking hours till 9:00 PM on November 30, 2020 (Monday) for which purpose a special clearing has been arranged at 6:00 P.M. on the same day by the NIFT.

    All banks are, therefore, advised to keep their concerned branches open on November 30, 2020 (Monday) till such time that is necessary to facilitate the special clearing for Government transactions by the NIFT.

  • KTBA identifies flaws in online tax return filing

    KTBA identifies flaws in online tax return filing

    KARACHI: Karachi Tax Bar Association (KTBA) on Saturday said that it has detected calculation errors on the online return filing portal of the Federal Board of Revenue (FBR).

    In this regard the tax bar sent a letter to Dr. Muhammad Ashfaq, Member Inland Revenue (Operations), Federal Board of Revenue (FBR) apprising him that the issues were discussed with o November 17, 2020 but the problems were same unresolved till to date.

    It is pertinent to mention that the last date for filing income tax return is December 08, 2020. Such problems may adversely affect the total number of return filing.

    The tax bar in its latest letter to the Member IR Operations highlighted the same issues for early resolution for smooth return filing.

    The tax bar said that IRIS Portal was not correctly calculating the tax on Behbood Saving Certificate and others. It said that till today working of tax on yield from Behbood Saving Certificate or Pensioners Benefit Account and Shuhada Welfare Account is still incorrect where average rate of tax exceeds 10 percent of total income.

    The tax bar suggested that to show the yield as a separate block of income in order to avoid the calculation issues.

    The KTBA said that minimum tax calculation was also showing incorrect working. The tax bar suggested that for tax year 2020, there has been a paradigm shift in taxation of incomes previously taxed under final tax regime and now are being taxed at minimum.

    “Although, the law had been amended yet there are not instructions given by the FBR as to how to cater to these situations.”

    Working under these situations is showing incorrect tax amount which renders the return defective and there is need to correct the working, the tax bar added.

    The tax bar highlighted issue in tax deducted/paid under Section 233A by a stock exchange registered in Pakistan, and said they were unable to claim tax deducted/paid in case of sale/purchase of shares under section 233A of the ordinance as the same is not available in adjustable tax regime. The tax bar suggested to provide the column for the tax year 2020.

    Similarly, in case of tax deducted/paid under section 236W on purchase of immovable property, it said that they were unable to claim tax deducted/paid in respect of property purchased before June 30, 2019 and tax under section 236W of the Ordinance is paid subsequently i.e. during the tax year 2020; as the same is not available in description/heads of Final Tax Regime (FTR)/Minimum Tax Regime (MTR).

    Therefore, it is suggested to provide the column for the tax year 2020.

    The KTBA pointed out that through Finance Act, 2019, tax regime for various income entities was changed from FTR to Minimum Tax. Accordingly, entities following special tax year are required to file January-June under FTR and July – December under minimum tax. However, IRIS portal does not cater for such situation.

    “For the income stream having special tax year where taxation regime is changed from final tax to minimum tax, the IRIS portal should cater both regimes,” the KTBA suggested.