The Federal Board of Revenue (FBR) has intensified efforts to curb unauthorized practices in the realm of sales tax by implementing penalties for the unauthorized issuance of sales tax invoices.
(more…)Author: Hamza Shahnawaz
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Penalty for non issuance of sales tax invoice
Section 33(2) of the Sales Tax Act, 1990 has imposed a penalty on taxpayers for non issuance of sales tax invoice to buyers of goods or services.
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Penalty for failure in filing sales tax return
The Federal Board of Revenue (FBR) has introduced penalty for failure to file sales tax returns within the stipulated timeframe under Section 33(1) of the Sales Tax Act, 1990.
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Weekly Review: Saudi support may keep market positive
KARACHI: The stock market is likely to stay positive during next week owing to the expected transfer of $3 billion from Saudi Arabia.
Analysts at Arif Habib Limited said that the market to show positivity in the upcoming week is attributable to support from Saudi Arabia in terms of safe deposits of $3 billion in the upcoming week which will release pressure off of foreign exchange reserves, the slowdown in international oil prices which will alleviate inflationary pressure, and end of roll-over week.
However, the last date of MSCI rebalancing on November 30, 2021 might trigger foreign selling, current macro-economic concerns like rising imports, higher inflationary reading due to increasing prices of commodities, and pressure on currency could keep the market range-bound.
The benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.5x (2021) compared to Asia Pac regional average of 15.0x while offering a dividend yield of 8.5 per cent versus 2.2 per cent offered by the region.
This week trading activity remained chaotic and gloomy with 2,375 points (5.11 per cent WoW; Highest weekly decline after 27th Mar’20) being eroded from the KSE-100 index which closed at 44,114 points this week.
The decline is attributable to i) State Bank of Pakistan increasing policy rate by 150 basis points to 8.75 per cent, ii) alarming current account deficit which increased to USD 5.1 billion in 4MFY21, iii) beginning of the roll-over week, iv) net selling from foreigners amid a transition from Emerging Market to the Frontier Market and v) decline in foreign exchange reserves putting pressure on PKR parity. Moreover, the announcement of a staff-level agreement with IMF failed to rejuvenate investors’ sentiments. Albeit, the index rebounded amid i) end of petroleum dealers strike post agreement with the government to increase margins, ii) news of Saudi inflow of USD 3bn expected next week, and iii) nosedive in international oil prices which might be a breather for the economy.
Contribution to the downside was led by i) Cements (462 points), ii) Commercial Banks (326 points), iii) Technology and Communication (290 points), iv) Fertilizer (270 points), and v) Oil & Gas Exploration (252 points). Scrip-wise major losers were LUCK (205 points), TRG (177 points), HBL (114 points), PPL (98 points), and ENGRO (95 points).
Foreigners offloaded stocks worth of USD 39.1 million compared to a net sell of USD 25.0 million last week. Major selling was witnessed in Commercial Banks (USD 15.7 million) and Fertilizer (USD 6.3 million). On the local front, buying was reported by Individuals (USD 16.0 million) followed by Companies (USD 13.3 million). That said, average daily volumes and traded value for the outgoing week were up by 8 per cent and 13 per cent to 264 million shares and USD 60 million, respectively.
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foodpanda demonstrates Pandafly drone at Dubai Expo
KARACHI: foodpanda has exhibited Pandafly drone at the Pakistan Pavilion in Dubai expo. foodpanda Pakistan’s leading food delivery company and is also the largest e-commerce platform.
The event is a testament to foodpanda’s commitment to grow and innovate through adoption of disruptive technology, as well as showcase the tremendous support and an enabling environment offered by the Government of Pakistan for continued growth and investment in the technology sector.
The use of these disruptive technologies by foodpanda, and other companies, in the future will mean faster deliveries over longer distances. Further customers living in peri-urban and remote areas will especially benefit through enhanced choice and competitive pricing.
Speaking at the event in Dubai, Nauman Sikandar Mirza, CEO of foodpanda stated: “We are very excited to be present at the Pakistan Pavilion to showcase our state of the art drone for food delivery.
“The support from the Government of Pakistan has been tremendous and our presence at this event has shown it to the world that Pakistan is open to testing innovative technologies and encourage investment in the technology and e-commerce sector.”
Hassan Afzal Khan, Pakistan’s Consul General in Dubai was also present at the event. Expressing his views, he said, “E-commerce and the use of technology to serve the citizens is definitely the future.
foodpanda’s use of innovative technologies for food delivery is highly impressive, and featuring it at the Dubai Expo was indeed a great idea. We wish foodpanda all the best in now turning this pilot project into a regular operational service.”
Also present at the event was Dr. Erfa Iqbal, Chairperson Punjab Board of Investment and Trade. While sharing her thoughts she said, “I am delighted to see that through e-commerce we are able to increase the overall economic activity and bring in financial inclusion, economic empowerment and socioeconomic uplift of the country and foodpanda is at the forefront of it. With this disruptive technology we are paving way for deliveries of the future where speed and convenience of customers are ranked at the highest level. As a country we still have a long way to go and thus, we need to keep on advancing on our efforts to create favorable business environment and make such technological revolution possible.”
The event was also attended by dignitaries, representatives of the media, corporate stakeholders from the MENA region, some celebrities and social media influencers.
Earlier in November, foodpanda launched the successful pilot project to test food delivery through Pandafly, the customized drone. Carried out in association with the Government, using a first of its kind drone built locally for commercial purposes in partnership with Woot Technology, the test flight took place in the F-9 Park Islamabad.
A food package weighing approximately 2.5 kgs was flown over 500m by the drone – with first and last mile of the delivery conducted by foodpanda’s very own riders.
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Bank Al Habib’s Seychelles branch license revoked
KARACHI: Bank Al Habib Limited on Friday said that on its request the Central Bank of Seychelles (CBS) revoked the license of its Seychelles branch operation.
In a communication sent to the Pakistan Stock Exchange (PSX), the bank said that to further earlier disclosure made on September 14, 2021, in respect of in-principle approval from State Bank of Pakistan (SBP) in addition to the approval from Central Bank of Seychelles (CBS) for the closure of Bank Al Habib Limited, Seychelles branch operations.
Now, the Central Bank of Seychelles has informed the bank that it had revoked the banking license of the Seychelles Branch Operations after completion of all the compliance requirements by the bank.
“This decision is in line with the bank’s strategy, and it will not have any material impact on the overall operating and financial position of the bank,” it added.
The disclosure material information is in accordance with Section 96 and 131 of Securities Act, 2015 and clause 5.6.1 (a) of the Rule Book of the Pakistan Stock Exchange (PSX).
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Today’s currency exchange rates in PKR – Nov 26, 2021
KARACHI: Following are the open market exchange rates of foreign currencies in Pak Rupee (PKR) in Pakistan on November 26, 2021 (The rates are updated at 11:30 AM Pakistan Standard Time):
Currency Buying Selling Australian Dollar (AUD) 125.10 126.60 Bahrain Dinar (BHD) 386.85 388.60 Canadian Dollar (CAD) 137.60 139.10 China Yuan (CNY) 23.75 23.90 Danish Krone (DNK) 23.50 23.80 Euro (EUR) 196.60 199.10 Hong Kong Dollar (HKD) 16.75 17.00 Indian Rupee (INR) 2.03 2.10 Japanese Yen (JPY) 1.41 1.44 Kuwaiti Dinar (KWD) 481.80 484.30 Malaysian Ringgit (MYR) 36.50 36.85 NewZealand $ (NZD) 96.55 97.25 Norwegians Krone (NOK) 17.50 17.75 Omani Riyal (OMR) 392.75 394.79 Qatari Riyal (QAR) 39.90 40.50 Saudi Riyal (SAR) 46.75 47.25 Singapore Dollar (SGD) 126.60 128.10 Swedish Korona (SEK) 18.50 18.75 Swiss Franc (CHF) 159.90 160.80 Thai Bhat (THB) 4.80 4.90 U.A.E Dirham (AED) 48.35 48.85 UK Pound Sterling (GBP) 234.10 237.10 US Dollar (USD) 177.10 178.35 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.
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Pakistan offers huge potential for e-commerce: PM Imran
ISLAMABAD: Prime Minister Imran Khan has said that Pakistan offered huge potential for e-commerce which will generate employment opportunities and help in economic growth.
The prime minister expressed these views in a meeting with Group CEO of Daraz (online E-Commerce platform) Bjarke Mikkelsen.
The Prime Minister Imran said that the government is providing full support to foreign investors under the ‘ease-of-doing-business’ policy.
CEO Daraz Bjarke Mikkelsen expressed interest in further investment and expansion of e-commerce in Pakistan.
Advisor Finance Shaukat Tarin, Chairman Special Technology Zones Authority Amir Hashmi, Senator Aon Abbas Bappi, MD Daraz Ehsan Saya and Emmad Khan from Daraz were present during the meeting.
About Daraz
Daraz is the leading online marketplace in South Asia, empowering tens of thousands of sellers to connect with millions of customers. Daraz provides immediate and easy access to 10 million products in more than 100 + categories and delivers more than 2 million packages every month to all corners of its countries.
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Today’s currency exchange rates in PKR – Nov 25, 2021
KARACHI: Following are the open market exchange rates of foreign currencies in Pak Rupee (PKR) in Pakistan on November 25, 2021 (The rates are updated at 10:50 AM Pakistan Standard Time):
Currency Buying Selling Australian Dollar (AUD) 125.50 127.00 Bahrain Dinar (BHD) 386.75 388.50 Canadian Dollar (CAD) 137.00 138.50 China Yuan (CNY) 23.75 23.90 Danish Krone (DNK) 23.45 23.75 Euro (EUR) 195.50 198.00 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) 46.45 46.95 Singapore Dollar (SGD) 125.50 127.00 Swedish Korona (SEK) 18.50 18.75 Swiss Franc (CHF) 159.90 160.80 Thai Bhat (THB) 4.80 4.90 U.A.E Dirham (AED) 48.10 48.60 UK Pound Sterling (GBP) 233.50 236.50 US Dollar (USD) 175.75 177.50 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.
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SEC Pakistan amends regulations to facilitate startups
ISLAMABAD: The Securities and Exchange Company of Pakistan (SEC Pakistan) has amended regulations to facilitate startups and small companies in raising equities through conventional modes.
The regulator introduced amendments in the Companies (Further Issue of Shares) Regulations, 2020 to address the impediments faced by the corporate sector, particularly startups and small companies, in raising equity through conventional modes, according to a statement issued on Wednesday.
Key changes include permission to convert one class of shares into another class, issuance of shares with differential rights without the approval of the SECP, and specification of mechanism for valuation of non-cash assets.
As per the law, companies can have more than one kind of share conferring varying rights of dividend, voting, and participation depending upon the needs of its capital providers. The requirement of prior approval of SECP has now been abolished. Such a measure will considerably help reduce the administrative burden and will contribute towards the growth of the fast-paced corporate world by removing a layer of regulatory approval.
Another vital amendment is to permit conversion of one class or kind of shares into another class or kind e.g. ordinary into preference shares. Currently, the Regulations only allow conversion of preference shares into ordinary shares while no mechanism is provided for other classes of shares.
The change aims to facilitate companies in maintaining an optimal capital structure considering their own financial needs and the demands of their shareholders.
Besides, a complete mechanism for the valuation of immovable property, intangible assets, or services has been introduced.
Now, the consulting engineers registered with Pakistan Engineering Council and QCR rated chartered accountant firms will be eligible to conduct valuation for the purposes of the Act.
These amendments have been introduced in consideration of numerous queries and suggestions received from small companies and startups, and are at par with the international jurisdictions.