Pkrevenue.com

Year: 2020

  • Shanghai Power allowed extension for public announcement offer to acquire KE shares

    Shanghai Power allowed extension for public announcement offer to acquire KE shares

    KARACHI: Securities and Exchange Commission of Pakistan (SECP) has allowed 90 days extension to Shanghai Power Company to make public announcement of offer to acquire 66.40 percent ordinary shares of K-Electric Limited.

    According to a communication to Pakistan Stock Exchange (PSX) on Tuesday related to extension in timeline for public announcement offer to acquire up to 4,639,825,784 ordinary shares of K-Electric Limited by Shanghai Electric Power Company Limited.

    Arif Habib Limited in the letter said with reference to the public announcement of intention published on June 30, 2020 to acquire 66.40 percent ordinary shares of K-Electric Limited by Shanghai Power Company Limited under the provision of regulation 7(1) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017

    The SECP in its letter said that the authority had granted the extension of ninety days to make public announcement of offer by Arif Habib Limited, which now may be made till March 27, 2021.

  • Rupee ends flat against dollar

    Rupee ends flat against dollar

    KARACHI: The Pak Rupee eased by one paisa against the dollar on Tuesday as sufficient supply of the foreign currency was available during the day.

    The rupee ended at Rs160.39 to the dollar from last day’s closing of Rs160.38 in the interbank foreign exchange market.

    Currency dealers said that although demand for the foreign currency remained higher due to year ending. They said the supply of the greenback was sufficient to meet the demand.

    They said that due to year ending the demand for import and corporate payments was higher. They however said that the rupee may remain stable in the coming days.

  • Cash paid for housing unit above Rs2 million required to be reported under AML/CFT: FBR

    Cash paid for housing unit above Rs2 million required to be reported under AML/CFT: FBR

    ISLAMABAD: Every cash transaction for sale and purchase of a housing unit of above Rs2 million is required to be reported under anti-money laundering (AML) / Counter Financing of Terrorism (CFT) to comply with conditions of Financial Action Task Force (FATF), the Federal Board of Revenue (FBR) said on Monday.

    The FBR issued guidelines to provide guidance to real estate agents (REAs) in implementing and complying with requirement in AML/CFT regime.

    The FBR said that currency transaction report (CTR) is required to be submitted when a developer receives cash or bearer negotiable instruments Rs2 million and above for selling real estate e.g. developer sells directly to buyer and receives direct cash payments.

    Similarly, a developer pays with cash or bearer negotiable instruments Rs2 million and above for buying real estate e.g. property developer or builder pays for purchase of real estate for development.

    Likewise, a broker receives or pays in case Rs2 million and above to be used subsequently in the purchase of real estate e.g. broker is a buyer’s agent who receives cash to be used subsequently to pay deposit/ or a settlement (either receipt or subsequent use may meet the CTR threshold).

    However, real estate agent would not be required to file any CTR if all financial transactions are via wire transfers. If REA pays cash to sales staff as remuneration over the threshold, or to a supplier, or purchase of an asset such as a motor vehicle, it would not be subject to CTR filing. They would not be considered as buying and selling real estate.

    The FBR said that the reason REAs are subject to the FATF standards and AML/CFT measures is because the real estate sector provides attractive assets for persons to launder funds from criminal activities given the large sums involved. “There are many example of criminals or corrupt officials using funds acquired from illegal activities to purchase real estate. REAs and their salespersons help customers to transact real properties and this could involve or facilitate the movement of large amounts of funds, sometimes across international boundaries. Real estate may also be involved with the financing of terrorism as terrorist groups may buy or sell real estate.”

    Pakistan’s AML/CFT regulatory regime is strongly informed by the international AML/CFT standards promulgated by the FATF. The FATF is an international task force established in 1989 to develop international standards to combat ML, TF and the financing of proliferation (PF). The FATF published a revised set of 40 Recommendations on AML/CFT measures in 2012, which are being continuously updated.

    Pakistan is currently under the FATF International Cooperation Review Process (ICRG) “Jurisdictions under Increased Monitoring” or “Grey list” process. Pakistan has committed to working with the FATF to address strategic deficiencies to counter ML and TF. Pakistan has also committed to improving its broader compliance with the FATF standards as part of its membership with the APG.

    There is a definition of a REA under both the AMLA and AML/CFT regulations, as extracted below:

    – AMLA, Section 2.Definitions (xii) (a)

    (a) real estate agents, including builders and real estate developers, when performing the prescribed activities in the prescribed circumstances and manner;

    -FBR AML/CFT Regulations for DNFBPs in Section 2.Definitions (n):

    (n) “Real Estate Agent” includes builders, real estate developers and property brokers and dealers when execute a purchase and sale of a real property, participate in a real estate transaction capacity and are exercising professional transactional activity for undertaking real property transfer;

    While the FBR AML/CFT Regulations for DNFBPs identifies four categories of REAs, in reality, your business could include all four with different business lines, or your real estate agency business is just brokerage.

  • Pak – Afghan PTA to be finalized next month: Razak Dawood

    Pak – Afghan PTA to be finalized next month: Razak Dawood

    ISLAMABAD: A preferential trade agreement (PTA) between Pakistan and Afghanistan will be finalized by end of next month, Adviser to Prime Minister on Commerce on Investment, Abdul Razak Dawood said on Monday.

    (more…)
  • PTBA demands 90-day date extension for taxpayers’ profile update

    PTBA demands 90-day date extension for taxpayers’ profile update

    ISLAMABAD: Pakistan Tax Bar Association (PTBA) has demanded the Federal Board of Revenue (FBR) to extend the last date for taxpayers’ profile update at least for 90 days as system glitches creating hurdles in making compliance.

    The PTBA on Monday sent a letter to FBR chairman Muhammad Javed Ghani highlighting issues related to updating the profiles of the taxpayers up till December 31, 2020 in compliance of the provisions of Section 114A of the Income Tax Ordinance, 2001 inserted through Finance Act, 2020.

    The Section has made it compulsory for the taxpayers to update their profile electronically containing various information such as bank account, utilities etc. Furthermore, failure to file the prescribed form will also trigger the penal provisions as well as exclusion of the taxpayers from ATL list.

    The PTBA highlighted that there are several issues which needs to be addressed in this cumbersome and time consuming process of updating profile of around 2.5 million taxpayers across the country.

    The apex tax bar pointed out that the in the prescribed format for updating profile, the date can be put into it but there is no option for submission or is it just need to be entered into the said form? Hence, needs clarification in this regard.

    “Whether the salaried individuals are also required to update their profile as there is no provision under Section 114A of the Ordinance, ibid requiring them to do so? Furthermore, the persons applying for registrations under section 181 are also required update their profiles. Will the same apply for the salaried individuals apply for registration under Section 181?”

    The PTBA also pointed out that the tab/icon for the profile update is also appearing in the portals of the e-intermediary however, it does not work to update the profiles of the taxpayers appearing the portal of such e-intermediaries. The said issue needs to be rectified as most of the taxpayers rely on their representatives to do the e-filing work in this regard.

    The necessary amendments needs to be made into IRIS system to allow the taxpayers to update their profile at the time of registration as the said updating is time consuming, cumbersome process as well as duplication of the information put through form 181.

    Keeping in view the glitches, shortfall, issues the member has been requested to issue directions to the concerned IT department in order to do the needful in this regard as early as possible.

    Furthermore, till such time these issues are resolved by the relevant IT department, the time line for updating the profile under the provisions of the Section 114A of the Ordinance, ibid may kindly be extended for further reasonable time (preferably 90 days).

  • KTBA urges FBR to issue form for updating taxpayers’ profile

    KTBA urges FBR to issue form for updating taxpayers’ profile

    KARACHI: Tax practitioners have urged the Federal Board of Revenue (FBR) to issue form for updating taxpayers’ profile and provide suitable time for making compliance.

    In a letter sent to Member Inland Revenue (Operations) FBR, the KTBA said that the last date for updating taxpayers’ profile is December 31, 2020 but the prescribed form is still not issued.

    Although, the FBR issued draft rules for updating profile through SRO1341(I)/2020 on December 16, 2020 but the finalized format is still awaited, said KTBA President Muhammad Zeeshan Merchant.

    The KTBA president said that the prescribed form as mentioned in clause (a) of sub-section (2) of Section 114A of the Income Tax Ordinance, 2001 has still not been issued and or made available on IRIS.

    “It was, though, discussed in our meeting at length and also agreed by your goodself that when the information sought under section 114A of the Ordinance is already available on IRIS in the registration form under Section 181 of the Ordinance, this new form would simply be a repetitive and arduous exercise in the presence of the information already available on IRIS (in the form under section 181), the KTBA president told the Member.

    In addition to above, Merchant said that it was also discussed that as and when the form is prescribed, the timelines available under the Ordinance would suitably be extended/amended accordingly and at least 90 days time would be given from the date of the form is prescribed. “It is needless to say that for the form to be prescribed and uploaded on IRIS, has first to be issued in draft form for public seeking comments and objection, if any, and after that only the said form can be legally prescribed or notified.”

    Considering the issue, the KTBA requested the Member to immediately take urgent measures to prescribe the said form as soon as possible and also provide/allow proper time available under the law which is minimum for 90 days which is not only the right of the taxpayers but at present also genuinely needed as the delay is not part of the taxpayers.

  • Pakistan Mortgage Refinance Corporation signs master agreement with six banks

    Pakistan Mortgage Refinance Corporation signs master agreement with six banks

    KARACHI: A major step has been taken for the Government’s Naya Pakistan Housing Program and making affordable housing possible for all as Pakistan Mortgage Refinance Corporation (PMRC) signed a master guarantee agreements with six banks, State Bank of Pakistan (SBP) said on Monday.

    A Credit Guarantee Trust, with Pakistan Mortgage Refinance Corporation (PMRC) as Trustee, has been set up by the Government of Pakistan with the support of State Bank of Pakistan (SBP) and funded by the World Bank.

    In line with Government’s vision to promote affordable housing especially for the low- and informal-income segments, the Credit Guarantee Trust will provide risk coverage of up to 40% to primary mortgage financiers on first loss basis.

    The guarantee will partially alleviate the credit risk of primary mortgage financiers and provide a conducive environment for banks to finance housing for the low-income. Keeping in view the dynamics of mortgage market and to facilitate market growth, the scheme has been designed for both conventional and Islamic banks.

    PMRC as trustee today signed a Master Guarantee Agreement with six leading Islamic and conventional banks including Meezan Bank, Habib Bank, BankIslami, Faysal Bank, JS Bank and Soneri Bank. This is a major step for the Government’s Naya Pakistan Housing Program and making affordable housing possible for all.

    Speaking at the occasion, Deputy Governor SBP Jameel Ahmed said that the risk coverage of mortgage portfolio under Government Markup Subsidy facility provides due comfort to banks in extending housing finance to the low income segment for buying or construction of new houses.

    He urged the banking industry to benefit from this unprecedented facilitative environment and extend loans to their maximum potential. He also urged the PMRC to focus on developing secondary mortgage market through issuance of mortgage-backed securities in the capital market.

    The Deputy Governor SBP emphasized that all stakeholders needed to make concerted efforts to achieve the goal of providing housing to the common people. He lauded the efforts by financial institutions over the last few months under the umbrella of Steering Committee on housing and construction finance established by State Bank of Pakistan.

    Mudassir H. Khan, MD and CEO of PMRC, expressing his views said that this Credit Guarantee Scheme will pave the way for the banking industry to extend housing finance to the low income group, a market segment which has remained negligible for long.

    He said that PMRC has a role of a catalyst in mortgage market development in the country and for growth of affordable housing in the country. He thanked the Deputy Governor SBP for his leadership and support for this sector, the Ministry of Finance, the World Bank and NAPHDA towards making the Government and PM’s vision of affordable housing a reality. 

  • SBP directs banks to observe extended hours on Dec 31 to facilitate taxpayers

    SBP directs banks to observe extended hours on Dec 31 to facilitate taxpayers

    KARACHI: The State Bank of Pakistan (SBP) on Monday directed banks to open their branches for extended hours on December 31, 2020 in order to facilitate taxpayers in payment of duty and taxes.

    In order to facilitate the collection of the 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 P.M. on December 31, 2020 (Thursday), for which purpose a special clearing has been arranged at 6:00 P.M. on the same day by the NIFT, the SBP said.

    The SBP directed that all banks keep their concerned branches open on December 31, 2020 (Thursday) till such time that is necessary to facilitate the special clearing for Government transactions by the NIFT.

  • Stock market gains 258 points in range bound activity

    Stock market gains 258 points in range bound activity

    KARACHI: The stock market gained 258 points on Monday while trading in range bound during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,674 points as against 43,417 points showing an increase of 258 points.

    Analysts at Arif Habib Limited said that the market traded positive but range bound today by adding a total of 344 points during the session and closing the session +258 points.

    Cement, Steel and Banking sector stocks faced selling pressure among which Cement sector stocks came down due to profit booking after posting highs today and in the rollover week.

    Positivity came from O&GMCs, Fertilizer and Power sector which took cue from finalization of pending IMF review and govt.’s acceptance of the underlying terms.

    Cement sector stocks initially hit a high on the news of construction of Dams, however, profit booking brought the stocks below respective LDCPs.

    International crude oil prices rebounded during the session, however, muted positive response was only observed in OGDC and PPL. Among scrips, KEL topped the volumes with 46.1 million shares, followed by UNITY (31.8 million) and TRG (25.8 million).

    Sectors contributing to the performance include Technology (+62 points), Banks (+37 points), O&GMCs (+29 points), Power (+28 points) and Vanaspati (+23 points).

    Volumes declined from 570.5 million shares to 463.4 million shares (-19 percent DoD). Average traded value also declined by 26 percent to reach US$ 117.8 million as against US$ 159.1 million.

    Stocks that contributed significantly to the volumes include KEL, UNITY, TRG, PRL and GGLR1, which formed 33 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+63 points), MEBL (+36 points), UNITY (+23 points), MCB (+17 points) and KEL (+17 points). Stocks that contributed negatively include POL (-13 points), LUCK (-10 points), UBL (-9 points), COLG (-8 points) and SYS (-8 points).

  • Rupee weakens by six paisas against dollar

    Rupee weakens by six paisas against dollar

    KARACHI: The Pak Rupee fell by six paisas against the dollar on Monday as the market opened after public and weekly holidays and witnessed higher demand for import and corporate payments.

    The rupee ended at Rs160.38 to the dollar from last Thursday’s closing of Rs160.32 in the interbank foreign exchange market.

    Currency dealers said that the rupee came under pressure during the day as the market opened after three days for public holiday on account of Qauid-e-Azam day and two weekly holidays.

    The demand remained higher during the day despite inflows of workers’ remittances and export receipts. However, these inflows were not sufficient to support the local unit.