Pkrevenue.com

Day: July 1, 2021

  • Finance Act, 2021: Withholding tax on phone, internet usage reduced

    Finance Act, 2021: Withholding tax on phone, internet usage reduced

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday said that the withholding tax rates on usage of phone and internet have been reduced to 10 per cent from 12.5 per cent with effect from July 01, 2021.

    For tax year 2022 the rate has been reduced to 10 per cent and it will be further reduced to 8 per cent beyond the tax year 2022.

    The FBR said that the withholding tax is applicable under Section 236 of the Income Tax Ordinance, 2001. Through the Finance Act, 2021 the withholding tax rates on the usage of phone and internet have been reduced from 12.5 per cent to 10 per cent for tax year 2022 and 8 per cent onwards.

    The FBR said that the Finance Act, 2021 inclusion of telecommunication sector in the definition of industrial undertaking under clause (29C) of section 2 of the Ordinance. This will enable them to adjust tax

    deducted under section 148 on import of capital equipment and plant & machinery for their own use. Reduction of withholding tax rate under section 153(1) of the Ordinance on telecommunication services from 8 per cent to 3 per cent under minimum tax regime.

  • FBR registers 71 cases of money laundering in FY21

    FBR registers 71 cases of money laundering in FY21

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday said that around 71 cases of money laundering have been registered during FY21 (2020/2021) in which an amount of Rs62 billion is involved.

    The FBR said that its wing i.e. Directorate General of Intelligence & Investigation-IR showed commendable performance during July 2020 to June 2021.

    During this period, Directorate General forwarded 1,608 Investigation Reports and Red Alerts to the field formations involving revenue amounting to Rs244 billion.

    The Directorate General filed 71 complaints under Anti-Money Laundering Act, 2010 where more than Rs. 62 billion were involved.

    The Directorate General seized 8,754 cartons containing 87,540,000 cigarette sticks during the period of July 2020 to June 2021.

  • Meezan Bank’s credit rating upgraded

    Meezan Bank’s credit rating upgraded

    KARACHI: VIS Credit Rating Company Limited has upgraded the entity ratings of Meezan Bank Limited (MEBL) to ‘AAA/A-1+’ (Triple A/ A-One Plus) from ‘AA+/A-1+’ (Double A Plus/ A-One Plus).

    (more…)
  • Ericsson launches international innovation awards

    Ericsson launches international innovation awards

    KARACHI: Ericsson (NASDAQ: ERIC) has launched its annual Ericsson Innovation Awards (EIA) 2021, a global competition with a grand prize of €25,000 that offers university students around the world, including from Pakistan, the chance to develop new, innovative ideas with support from Ericsson experts.

    The theme in 2021 is ‘Bridge the Digital Divide’. The digital revolution has transformed the world, enriching lives in countless ways yet half the planet lives without access to the tools, information, and resources that many of us rely on every day.

    Ericsson Innovation Awards is open to students currently enrolled in University studies. Students from around the world are invited to enter the competition and are encouraged to form diverse teams of two to four members. Teams must register and submit their ideas by August 5th at 11 AM GMT and the first 50 submissions will receive extra guidance for refining their ideas.

    Innovations come in all sizes, from simple changes in code that could redefine the networks of the future to complex technological advances that will advance humanitarian efforts across the world. We believe that young people drive innovation and development when it comes to current pressing issues. That’s why, with innovation at the heart of Ericsson, we want to invite young talents to register for Ericsson Innovation Awards 2021, said a statement.

    Each of the seven regional winners will receive €1,000 cash prize and in some cases, additional special recognition and prizes offered within respective regions.

    All 14 Semi-finalists – including the seven regional winners – will receive Seven weeks of mentorship from Ericsson experts in innovation and business, recognition on Ericsson social and digital media, the possibility of Ericsson recruiter interviews (if any suitable positions are available at the time) and certificate of achievement. 

    All three finalist teams will receive Grand Prize Winner: €25,000, 2nd Place: €15,000, 3rd Place: €5,000, Bonus: Social Media Prize: €2,000, an invitation to the Ericsson Innovation Awards Grand Final, an additional four weeks of mentorship and recognition across Ericsson social media and digital channels. 

    All three Finalists will have their entries uploaded onto the Instagram page of @ericssoncareers, and for the 24 hours before the Grand Final, anyone can vote on this page. The team who receives the most votes will win an additional €2,000.

  • FBR receives 3.01 million income tax returns

    FBR receives 3.01 million income tax returns

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said it has received 3.01 million income tax returns for tax year 2020 till June 30, 2021.

    “FBR’s efforts to broaden the tax base are expanding apace. Early signs suggest such efforts are bearing fruits,” it said in a statement.

    As on June 30, 2021, income tax returns for Tax Year 2020 have reached 3.01 million as compared to 2.67 million in Tax Year 2019, showing an increase of 12.5 per cent.

    The tax deposited with returns was Rs.52 billion compared to only Rs.34.3 billion last year, showing an increase of 52.1 per cent.

    The FBR said that 11,100 point of sale terminals have been integrated with the real time reporting system of the revenue body.

  • Annual tax collection grows by 18% to Rs4.732 trillion: FBR

    Annual tax collection grows by 18% to Rs4.732 trillion: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs4.732 trillion during fiscal year 2020/2021 surpassing the annual target of Rs4.69 trillion by Rs41 billion.

    This represents a growth of about 18 per cent over the collection of Rs. 3,997 billion during the same period last year.

    The net collection for the month of June was Rs. 568 billion representing an increase of 26 per cent over Rs. 451 billion collected in June 2020.

     The year-on-year growth of 18 per cent is unprecedented particularly as it is realized on the heel of 26 per cent growth in June.

    These figures would further improve before the close of the day and after book adjustments have been taken into account.

    On the other hand, the gross collections increased from Rs. 4,132 billion during this period last year to Rs. 4,983 billion, showing an increase of 21 per cent.

    The amount of refunds disbursed was Rs. 251 billion compared to Rs. 135 billion paid last year, showing an increase of 86 per cent. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry.

    The improved revenue performance is even more significant due to adoption of ‘no-undue’ advances policy as well as effective enforcement by field formations. It is also a reflection of growing economic activities in the country despite facing the challenge of third wave of COVID-19.

  • Consumer prices inflate by 9.7 percent in June 2021

    Consumer prices inflate by 9.7 percent in June 2021

    ISLAMABAD: The inflation based on Consumer Price Index (CPI) has increased by 9.7 percent on year-on-year basis in June 2021 as compared to an increase of 10.9 per cent in the previous month and 8.6 per cent in June 2020, Pakistan Bureau of Statistics (PBS) said on Thursday.

    On month-on-month basis, it decreased by 0.2 per cent in June 2021 as compared to an increase of 0.1 per cent in the previous month and an increase of 0.8 per cent in June 2020.

    CPI inflation Urban, increased by 9.7 per cent on year-on-year basis in June 2021 as compared to an increase of 10.8 per cent in the previous month and 7.6 per cent in June 2020. On month-on-month basis, it decreased by 0.4 per cent in June 2021 as compared to an increase of 0.2 per cent in the previous month and an increase of 0.7 per cent in June 2020.

    CPI inflation Rural, increased by 9.7 per cent on year-on-year basis in June 2021 as compared to an increase of 10.9 per cent in the previous month and 10.0 per cent in June 2020. On month-on-month basis, it decreased by 0.1 per cent in June 2021 as compared to a decrease of 0.03 per cent in the previous month and an increase of 1.0 per cent in June 2020.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 17.6 per cent in June 2021 as compared to an increase of 19.7 per cent a month earlier and an increase of 11.5 per cent in June 2020. On MoM basis, it decreased by 0.4 per cent in June 2021 as compared to an increase of 0.8 per cent a month earlier and an increase of 1.4 per cent in June 2020.

    Wholesale Price Indicator (WPI) inflation on YoY basis increased by 20.9 per cent in June 2021 as compared to an increase of 19.4 per cent a month earlier and an increase of 0.9 per cent in June 2020. WPI inflation on MoM basis increased by 0.9 per cent in June 2021 as compared to an increase of 0.3 per cent a month earlier and a decrease of 0.3 per cent in corresponding month i.e. June 2020.

  • To whom filing income tax return for tax year 2021 mandatory

    To whom filing income tax return for tax year 2021 mandatory

    KARACHI: The Federal Board of Revenue (FBR) on Thursday launched its IRIS portal for filing income tax returns for tax year 2021.

    Filing of a return of income is mandatory under Section 114 of the Income Tax Ordinance, 2001.

    Section 114: Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–

    (a) every company;

    (ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year; or

    (ac) any non-profit organization as defined in clause (36) of section 2;

    (ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;

    (ae) every person whose income for the year is subject to final taxation under any provision of this Ordinance;

    (b) any person not covered by clause (a), (ab), (ac) or (ad) who,—

    (i) has been charged to tax in respect of any of the two preceding tax years;

    (ii) claims a loss carried forward under this Ordinance for a tax year;

    (iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    (iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

    (v) owns a flat having covered area of two thousand square feet or more located in a rating area;

    (vi) owns a motor vehicle having engine capacity above 1000 CC;

    (vii) has obtained National Tax Number; or

    (viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;

    (ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; or

    (x) is a resident person being an individual required to file foreign income and assets statement under section 116A.

    (1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.

    A return of income under section 114 of a company shall be furnished —

    (a) in the case of a company with a tax year ending any time between the first day of January and the thirtieth day of June, on or before the thirty-first day of December next following the end of the tax year to which the return relates; or

    (b) in any other case, on or before the thirtieth day of September next following the end of the tax year to which the return relates.

  • PSX welcomes new fiscal year with 445 points gain

    PSX welcomes new fiscal year with 445 points gain

    KARACHI: The stock market gained 445 points on Thursday as buying activities were observed on the first day of the fiscal year 2021/2022.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,801 points as against previous day’s closing of 47,356 points, showing an increase of 445 points.

    Analysts at Arif Habib Limited said that the market performed well on the first day of FY22, adding a total of 487 points on the board and maintained the momentum by session’s end, closing +445 points.

    Profit booking by institutions in the past couple of sessions in the wake of closing FY21 with decent returns, left the institutions with deployable funds that will likely route back to equities in the coming days.

    Buying activity was observed across the board with Technology, Cement and Banking stocks contributing the most. Positive news trigger on economic front, including textile sector posting healthy export growth kept the momentum alive.

    Among scrips, WTL topped the volumes with 198.7 million shares, followed by SILK (51.4 million) and TPL (48.2 million).

    Sectors contributing to the performance include Cement (+102 points), E&P (+67 points), Textile (+41 points), Chemical (+34 points) and Fertilizer (+29 points).

    Volumes increased from 549.6 million shares to 760.01 million shares (+38 per cent DoD). Average traded value also increased by 2 per cent to reach US$ 103 million as against US$ 101 million.

    Stocks that contributed significantly to the volumes include WTL, SILK, TPL, HUMNL and PACE, which formed 48 per cent of total volumes.

    Stocks that contributed positively to the index include LUCK (+65 points), PPL (+30 points), COLG (+22 points), NML (+21 points) and HBL (+19 points). Stocks that contributed negatively include MCB (-12 points), BAFL (-11 points), TRG (-7 points), ABL (-6 points) and PKGS (-5 points).

  • Return filing for tax year 2021 commences

    Return filing for tax year 2021 commences

    ISLAMABAD: Unlike past practice of delayed opening of income return filing, the Federal Board of Revenue (FBR) has opened the IRIS portal for filing annual return of income for tax year 2021 from July 01, 2021.

    The taxpayers can login with their ID and password to the IRIS portal of the FBR and file their income tax return.

    The FBR on Thursday also launched the income tax return forms for salaried persons, association of persons and companies having special tax years.

    In the past the FBR was under criticism for delayed issuance of income tax return form which resulted in multiple extensions in date for filing the returns.

    As the FBR opened the portal for return filing of tax year 2021 therefore the last date is September 30, 2021 in case of salaried persons, AOPs and companies.