KARACHI: Industry has strongly protested over imposition of 20 per cent additional sales tax on supply of electricity and said it will destroy the industrial activities and result in mass unemployment.
He demanded the government to withdraw the increase immediately and K-Electric should be stopped from looting the industrial community.
The imposition of additional taxes on electricity will lead to destruction and a flood of unemployment.
In a statement, NKATI president said that 20 per cent additional sales tax has been levied on the electricity bills sent to industries by K-Electric.
While KE is already levying 17 per cent sales tax on electricity bills, so there is no justification for imposing an additional 20 per cent sales tax.
“Forcible collection of additional sales tax from registered consumers in sales tax is a total injustice which will increase the cost of production immensely. Which will have a very bad effect on the country’s exports and industrial production activities”, he said.
Faisal Moiz Khan demanded the government to take notice of the imposition of 20% additional sales tax on electricity bills by K-Electric and withdraw this decision immediately and provide a conducive business and industrial environment in line with Prime Minister Imran Khan’s vision of making it easier to do business and run industries. Otherwise, it will be impossible for industrialists to run their own factories
NKATI president further said that if the government wants industries to flourish and create more employment opportunities, then anti-business and anti-industrial measures must be avoided, so that the domestic industries can get back on their feet in the face of the dire economic situation due to COVID-19 pandemic.
In a move to streamline tax regulations and provide clarity to businesses, the Federal Board of Revenue (FBR) has released the advance tax rates on payments to non-residents for the tax year 2022.
The rate of tax to be deducted under section 150 shall be-
(a) 7.5 per cent in case of dividend paid by Independent Power Producers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be re-imbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity.
(b) 15 per cent in mutual funds, Real Estate Investment Trusts and cases other than those mentioned in clauses (a) and (ba); and
(ba) 25 per cent in case of a person receiving dividend from a company where no tax is payable by such company, due to exemption of income or carry forward of business losses under Part VIII Chapter III or claim of tax credits under Part X of Chapter III.
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
The rate of advance tax to be collected by the Collector of Customs under section 148 shall be-
The tax rate on persons importing goods classified in Part I of the Twelfth Schedule shall be one per cent of the import value as increased by customs-duty, sales tax and federal excise duty.
The tax rate on persons importing goods classified in Part II of the Twelfth Schedule shall be two per cent of the import value as increased by customs-duty, sales tax and federal excise duty.
The tax rate on persons importing goods classified in Part III of the Twelfth Schedule shall be 5.5 per cent of the import value as increased by customs-duty, sales tax and federal excise duty;
Provided that the rate specified in column (3),—
(a) in the case of manufacturers covered under rescinded Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 as it stood on the 28th June, 2019 on import of items covered under the aforementioned S.R.O shall be 1%;
(b) in case of persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan shall be 4%:
(c) in case of importers of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and LCVs with 150 kwh battery or below shall be one percent:] Provided further that the rate of tax on value of import of mobile phone by any person shall be as set out in the following table, namely:-
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
KARACHI: The stock market is likely to stay positive during the next week as the IMF and Pakistan expected to reach an agreement.
Analysts at Arif Habib Limited said that the market to remain positive in the upcoming week. With IMF and Pakistan expected to reach agreement soon, the investor sentiment is anticipated to remain buoyant.
Moreover, with the ongoing result season, certain sectors and scrips are expected to stay under limelight.
Keeping in view concerns over inflation and devaluation of Pak Rupee against greenback, investors are expected to have a cautious approach.
The KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.2x (2021) compared to Asia Pac regional average of 14.7x while offering a dividend yield of ~8.1 per cent versus ~2.2 per cent offered by the region.
The market commenced on a negative note this week given the uncertainty over outcome of Pakistan-IMF talks tagged with surge in petroleum prices raising concerns over inflation.
The market sentiment changed after Advisor to the PM informed that talks with IMF were moving in the positive direction, with staff-level agreement expected to be reached soon.
Alongside this, the current account deficit for September 2021 narrowed by 24.5 per cent MoM to USD 1.1 billion, fueling the positive momentum.
On the flip, continuous drop in PKR/USD parity to PKR 174 (all time high exchange rate), reduction in SBP reserves by 8 per cent WoW to USD 17.5 billion and FATF retaining Pakistan on grey-list in its plenary meeting, kept the index in check.
Albeit, the market closed at 45,578 points, gaining 757 points (up by 1.7 per cent) WoW.
Sector-wise positive contributions came from i) Commercial Banks (463 points), ii) Cement (184 points), iii) Oil & Gas Exploration Companies (137 points), iv) Fertilizer (107 points), and v) Insurance (42 points).
Whereas, sectors which contributed negatively were i) Technology & Communication (155 points), and ii) Food & Personal Care Products (31 points).
Scrip-wise positive contributors were HBL (187 points), UBL (150 points), ENGRO (99 points), LUCK (72 points) and MCB (64 points).
Meanwhile, scrip-wise negative contribution came from TRG (113 points), PSO (27 points) and SYS (26 points).
Foreign selling continued this week, clocking-in at USD 7.3 million compared to a net sell of USD 13.3 million last week. Major selling was witnessed in Fertilizer (USD 4.5 million) and Commercial Banks (USD 3.8 million). On the local front, buying was reported by Insurance Companies (USD 4.6 million) followed by Other Organizations (USD 2.5 million).
Average volumes clocked-in at 299 million shares (down by 13 per cent WoW) while average value traded settled at USD 64 million (down by 10 per cent WoW).
KARACHI: Following are the exchange rates of foreign currencies in Pak Rupee (PKR) in Pakistan on October 23, 2021 (The rates are updated at 07:51 AM):
Currency
Buying
Selling
Australian Dollar (AUD)
128
129.50
Bahrain Dinar (BHD)
386.75
388.50
Canadian Dollar (CAD)
138
140
China Yuan (CNY)
23.75
23.90
Danish Krone (DNK)
23.45
23.75
Euro (EUR)
201
203.50
Hong Kong Dollar (HKD)
16.70
16.95
Indian Rupee (INR)
2.03
2.10
Japanese Yen (JPY)
1.41
1.44
Kuwaiti Dinar (KWD)
481.70
484.20
Malaysian Ringgit (MYR)
36.45
36.80
NewZealand $ (NZD)
96.45
97.15
Norwegians Krone (NOK)
17.50
17.75
Omani Riyal (OMR)
392.70
394.70
Qatari Riyal (QAR)
39.90
40.50
Saudi Riyal (SAR)
46.50
47
Singapore Dollar (SGD)
126
127.50
Swedish Korona (SEK)
18.35
18.60
Swiss Franc (CHF)
159.90
160.80
Thai Bhat (THB)
4.80
4.90
U.A.E Dirham (AED)
48
48.50
UK Pound Sterling (GBP)
238.50
241
US Dollar (USD)
173.80
174.80
Disclaimer: Team PKRevenue.com provides the available rates of the open market, which are subject to change every hour. Team PKRevenue.com provides the available exchange rates at the time of posting the story. So the team is not responsible for any inaccuracy of the data.
The Federal Board of Revenue (FBR) has stirred controversy with its recent decision to suspend credit notes against supplies made to unregistered persons, a move that has drawn strong protests from the Karachi Tax Bar Association (KTBA).
KARACHI: Engro Corporation Limited has posted a significant 23 per cent growth in consolidated revenue for the nine-month period ended on September 30, 2021.
Pakistan’s premier conglomerate, Engro Corporation (PSX: ENGRO) announced its financial results for the third quarter ended September 30, 2021.
Engro delivered a strong operational performance in first nine months of 2021 as its consolidated revenue grew by 23 per cent from Rs 182,497 million as compared with Rs223,581 million in the corresponding period of the last year.
The company recorded a consolidated Profit After Tax (PAT) of Rs40,504 million up by 31 per cent from same period last year.
Profit attributable to the owners stood at Rs23,173 million compared to Rs18,345 million in the first nine months of 2020, resulting in an Earnings per Share (EPS) of Rs40.22 compared to Rs31.84 in the nine months of 2020. The growth in the bottom line is primarily attributable to increased profits posted by Fertilizers and Petrochemicals businesses.
On a standalone basis, the Company posted a PAT of Rs 16,015 million against Rs 9,283 million in 9M 2020, translating into an EPS of Rs 27.80 per share. The Company also announced an interim cash dividend of Rs 5 per share for third quarter taking the total dividend distributed for the year to Rs 24 per share.
Financial Performance – Segmental Perspective:
Fertilizers: Domestic market witnessed strong agricultural sector performance in 2021 with limited impact from COVID-19 led lockdowns. Prices of agri commodities remained firm during the quarter resulting in improved earnings for farmers and higher urea industry volumes versus prior year.
Engro Fertilizers Limited (“EFert”) revenue during the period stood at Rs 92,742 million versus 78,138 million on the back of higher Urea sales of 1,644 KT in comparison to 1,451 KT in 9M 2020. Urea production stood 1,560 KT versus 1,694 KT in 9M 2020 on account of planned plant turnarounds. EFert recorded Phosphate sales of 242 KT against 366 KT in 9M 2020. As a result, the PAT for EFert stood at Rs 14,921 million for 9M 2021 as compared to Rs 11,491 million in the same period last year.
Petrochemicals: International PVC prices reached an all-time high of $1850/MT by September end due to high demand along with global supply disruptions. Domestic PVC market recorded a volumetric increase of 30 per cent in Q3 2021 against previous quarter as buying sentiment improved.
Engro Polymers and Chemicals Limited (“EPCL”) announced commercial operations of the new PVC plant on March 01, 2021, increasing the capacity by 100 KT to 295 KT per annum and commercial operations of 50 KT new VCM DBN capacity on June 25, 2021 increasing capacity to 245 KT per annum.
In 9M 2021, EPCL recorded a revenue of Rs 49,323 million as compared to Rs 22,931 million in in 9M 2020. The business witnessed its highest ever profit of Rs 10,372 million versus Rs 2,103 million on account of increased volumetric sales, efficient operations and higher international prices.
Connectivity: Engro continued to expand its footprint through Engro Enfrashare which has now become the country’s largest Independent TowerCo (with 48 per cent market share vs 41 per cent in 2020) in terms of operational sites, serving all Mobile Network Operators in Pakistan. As at September 30, 2021, Enfrashare held a portfolio size of 2,030 operational sites and 2,219 tenancies resulting in a tenancy ratio of 1.09x.
The telecom sector in Pakistan is registering an annual growth of 28 per cent with the 3G / 4G subscriber base expanding beyond 100 million. This has led Engro to enhance its total equity investment in the Telecom Infrastructure vertical to Rs 21.5 billion. Engro has also formed a dedicated platform for connectivity and telecom infrastructure related initiatives by the name of Engro Connect (Pvt.) Limited. Engro Connect is a wholly owned subsidiary of Engro and will hold complete ownership of Engro Enfrashare (Pvt.) Limited.
Energy & Power: Sindh Engro Coal Mining Company (“SECMC”) supplied around 3 million tons of coal to Engro Powergen Thar Limited (“EPTL”) during the period. SECMC’s expansion work to enhance its output to 7.6 million tons per annum is in progress. EPTL remained fully operational and achieved 84.7 per cent availability with a load factor of 82 per cent, dispatching 3,253 GwH to the national grid during the period.
Engro Powergen Qadirpur Limited (“EPQL”) operates on permeate gas and is currently facing gas curtailment from the Qadirpur gas field as it continues to deplete. To make up for this shortfall, EPQL’s plant has been made available on mixed mode. The plant dispatched a net electrical output of 615 GwH to the national grid with a load factor of 44 per cent compared to 32 per cent during the same period last year. EPQL posted a PAT of Rs 1,463 million for the current period as compared to Rs 2,031 million for 9M 2020, which is mainly attributable to retirement of debt component.
Terminals: Profitability of both the LNG and chemicals terminal remained healthy during the period. The chemicals terminal throughput volumes normalized to 934 KT versus 806 KT last year as volumes were impacted in 2020 due to lockdowns because of COVID-19. The LNG terminal handled 52 cargoes against 54 cargoes during same period last year, delivering 158 bcf re-gasified LNG in to the SSGC network.
With around two years of planning and efforts amidst COVID-19 volatility, Engro Elengy Terminal Limited (“EETL”) has successfully completed Pakistan’s first-ever dry docking activity at Qatar dockyard. During the dry docking period, FSRU Sequoia enabled gas supply continuity ensuring national energy security. After completion of its dry docking, FSRU Exquisite has now returned to Pakistan and is online.
Analysts at Topline Securities said that the KSE 100 index opened on a positive note and gain to make an intraday high of 217 points, however it failed to sustain its momentum on account of protest by right wing religious party and opposition party alliance (Pakistan Democratic Movement) across Pakistan.
A major contributions to the index came from HBL, UBL, AICL, CHCC and THALL, as they cumulatively contributed 104 points to the index. On the flip side TRG, ENGRO, PPL, PSO, and OGDC, as cumulatively contributed 167 points to the index.
Traded volume and value for the day stood at 301 million shares and Rs11.8 billion. HUMNL was today`s volume leader with 36 million shares.
