Pkrevenue.com

Month: March 2021

  • Eurobonds, Sukuks granted income tax exemption

    Eurobonds, Sukuks granted income tax exemption

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday granted income tax exemption on profits derived by foreign nationals on yield of Eurobonds and International Sukuk issued by the government of Pakistan.

    In this regard the FBR issued two notifications to make changes in Income Tax Ordinance, 2001.

    The FBR issued SRO 268(I)/2021 and SRO 269 (I)/2021.

    The FBR granted the exemption while exercising powers available under the Second Schedule of the Ordinance. Under the Schedule the government has authority to grant tax exemption of the income derived by foreign nationals of companies.

    According to the notifications, the government granted the exemption to the profit on debt income of an agency of a foreign government, a foreign national company, firm or association of a person or any other non-resident person, on Eurobonds and International Sukuks issued under the government’s medium term note program.

  • Stock market ends down by 272 points on selling pressure

    Stock market ends down by 272 points on selling pressure

    KARACHI: The stock market ended down by 272 points on Monday as selling pressure witnessed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,593 points as against last Friday’s closing of 45,865 points, showing a decline of 272 points.

    Analysts at Arif Habib Limited said that the market saw a major draw down today by losing 772 points during the session.

    Initially, the index gained 144 points, however, across the board selling pressure brought the index down. Supreme Court’s decision on Senate Election was viewed against the back drop of Govt.’s plea and concerned investors to keep the liquidity intact rather than hold on to positions.

    TRG announced financial results today, which saw profit booking that brought the stock below LDCP. Among the few stocks that traded positive include STCL, MUGHAL, ATRL, NRL. Last half an hour saw brisk buying with index closing -255 points (unadjusted). Among scrips, ANL topped the volumes with 31.7 million shares, followed by TRG (24.6 million) and UNITY (21.1 million).

    Sectors contributing to the performance include Banks (-103 points), Textile (-27 points), Pharma (-26 points), Power (-23 points), Technology (-19 points) and Chemical (+22 points).

    Volumes declined from 479.9 million shares to 368.3 million shares (-23 percent DoD). Average traded value also declined by 29 percent to reach US$ 116.4 million as against US$ 162.8 million.

    Stocks that contributed significantly to the volumes include ANL, TRG, UNITY, HUMNL and BYCO, which formed 32 percent of total volumes.

    Stocks that contributed positively to the index include EPCL (+18 points), COLG (+12 points), PAKT (+9 points), LUCK (+8 points) and ANL (+6 points). Stocks that contributed negatively include UBL (-39 points), HBL (-32 points), BAHL (-18 points), PSO (-13 points) and MARI (-12 points).

  • Rupee makes 6 paisas gain against dollar

    Rupee makes 6 paisas gain against dollar

    KARACHI: The Pak Rupee gained six paisas against the dollar on Monday owing to better inflows of the foreign exchange, dealers said.

    The rupee ended at Rs158.04 to the dollar from last Friday’s closing of Rs158.10 in the interbank foreign exchange market.

    It was the sixth straight trading day when the rupee maintained its recovery against the greenback. The exchange rate was at Rs159.10 on February 19, 2021. However, since then the local currency recovered Re1.06 against the greenback in the interbank foreign exchange market.

    Currency experts said that the rupee may make more gains in coming days owing to improved inflows of workers’ remittances and export receipts.

  • Headline inflation increases by 8.7pc in February

    Headline inflation increases by 8.7pc in February

    ISLAMABAD: The headline inflation i.e. Consumer Price Index (CPI) increased by 8.7 percent in February 2021 on year on year basis, Pakistan Bureau of Statistics (PBS) said on Monday.

    CPI inflation General, increased by 8.7 percent on year-on-year basis in February 2021 as compared to an increase of 5.7 percent in the previous month and 12.4 percent in February 2020.

    On month-on-month basis, it increased by 1.8 percent in February 2021 as compared to a decrease of 0.2 percent in the previous month and a decrease of 1.0 percent in February 2020.

    CPI inflation Urban, increased by 8.6 percent on year-on-year basis in February 2021 as compared to an increase of 5.0 percent in the previous month and 11.2 percent in February 2020.

    On month-on-month basis, it decreased by 2.3 percent in February 2021 as compared to a decrease of 0.2 percent in the previous month and a decrease of 1.1 percent in February 2020.

    CPI inflation Rural, increased by 8.8 percent on year-on-year basis in February 2021 as compared to an increase of 6.6 percent in the previous month and 14.2 percent in February 2020. On month-on-month basis, it increased by 1.1 percent in February 2021 as compared to a decrease of 0.3 percent in the previous month and a decrease of 1.0 percent in February 2020.

    The Sensitive Price Indicatory (SPI) inflation on YoY increased by 11.9 percent in February 2021 as compared to an increase of 7.7 percent a month earlier and an increase of 14.5 percent in February 2020. On MoM basis, it increased by 3.1 percent in February 2021 as compared to a decrease of 0.8 percent a month earlier and a decrease of 0.8 percent in February 2020.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 9.5 percent in February 2021 as compared to an increase of 6.4 percent a month earlier and an increase of 12.7 percent in February 2020. WPI inflation on MoM basis increased by 2.2 percent in February 2021 as compared to an increase of 2.5 percent a month earlier and a decrease of 0.7 percent in corresponding month i.e. February 2020.

  • FBR issues 2.1 million notices for non-filing, misdeclaring assets

    FBR issues 2.1 million notices for non-filing, misdeclaring assets

    ISLAMABAD: The tax authorities have issued 2.1 million notices to individuals and companies for non-compliance in annual return filing and to those who misdeclared assets in their annual returns of income, a statement issued by Federal Board of Revenue (FBR) said on Sunday.

    These notices were sent to defaulters by February 28, 2021. The FBR issued notices around 1.4 million by January 31, 2021. It means during the month of February 2021 the revenue body issued another 700,000 notices to defaulters.

    FBR is taking such action to broaden the tax base in the country. Early signs suggest such efforts are bearing fruits. As on February 28, 2021, the number of income tax returns filed was 2.63 million for tax year 2020 as compared with 2.43 million last year, showing an increase of 8 percent.

    The FBR said that the tax return with return, however, increased by 60 percent to Rs49.6 billion up to February 28, 2021 as compared with Rs31 billion by the same date of the last year.

    The FBR said that the income tax return for tax year 2020 had been increased despite the last date was not extended beyond December 08, 2020. Meanwhile the last date for filing income tax returns for tax year 2019 was extended up to February 25, 2020.

    The exercise is eliciting encouraging response. However, those who are not complying would be pursued diligently until compliance is achieved.

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