In a bid to streamline taxation procedures and ensure clarity for taxpayers, the Federal Board of Revenue (FBR) has released details regarding the tax rates on immovable property for the tax year 2022. The information is part of the Income Tax Ordinance, 2001, updated up to June 30, 2021, incorporating amendments introduced through the Finance Act, 2021.
(more…)Author: Hamza Shahnawaz
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CGT rates on disposal of securities during Tax Year 2022
The tax rates on disposal of securities for tax year 2022 under the First Schedule of the Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following are the rates on disposal of securities:
The rate of tax to be paid under section 37A shall be as follows:—
TABLE I
Provided that the rate of tax on cash settled derivatives traded on the stock exchange shall be 5% for the tax years 2018 to 2020.
Provided that the rate for companies shall be as specified in Division II of Part I of First Schedule, in respective of debt securities;
Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed, namely:—
Category Rate Individual and association of persons 10% for stock funds 10% for other funds Company 10% for stock funds 25% for other funds Explanation.- For removal of doubt, it is clarified that, the provisions of this proviso shall be applicable only in case of a mutual fund or collective investment scheme or a REIT scheme.
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KSE-100 index falls on uncertainty in IMF negotiations
KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell by 192 points on Monday. The index declined owing to uncertainty in dialogues of the government authorities with the IMF.
The index closed at 44,629 points as against last Friday’s closing of 44,821 points.
Analysts at Arif Habib Limited said that the market took pressure from the negative news vibes due to delay in negotiating the resumption of IMF package.
Though, the Ministry of Finance highlighted that the negotiations are ongoing and underlying terms will be negotiated soon, the investors had not like the uncertainty.
Oil chain and banking stocks went positive earlier in the session that added a total of 169 points on the index, however, selling pressure eroded this gain and MoC brought the Index in negative territory.
Among scrips, HUMNL topped the volumes with 25.1 million shares, followed by WTL (20.8 million) and HASCOL (13.8 million).
Sectors contributing to the performance include Technology (-146 points), Cement (-47 points), Engineering (-27 points), Textile (-24 points) and Refinery (-18 points).
Volumes declined from 334.3 million shares to 248.3 million shares (-26 per cent DoD). Average traded value also declined by 25 per cent DoD to reach US$ 51 million as against US$ 68.2 million.
Stocks that contributed significantly to the volumes include HUMNL, WTL, HASCOL, UNITY and DSL, which formed 34 per cent of total volumes.
Stocks that contributed positively to the index include HBL (+48 points), MCB (+31 points), OGDC (+30 points), PPL (+29 points) and ENGRO (+27 points). Stocks that contributed negatively include TRG (-88 points), SYS (-47 points), BAHL (-42 points), FFC (-22 points) and UNITY (-17 points).
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Foreign direct investment declines to $439M in 1QFY22
Pakistan has witnessed a four per cent decrease in foreign direct investment (FDI) during the first quarter (July – September) of the fiscal year 2021/2022 (Q1FY22), as per data released by the State Bank of Pakistan (SBP) on Monday.
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PKR derails to make record low at Rs172.78 to dollar
KARACHI: The Pak Rupee (PKR) derailed against dollar on Monday and fell to a new all-time low of Rs172.78 in the interbank foreign exchange market.
The rupee fell by Rs1.6 to end at Rs178.78 to a dollar from last Friday’s closing of Rs171.18 in the interbank foreign exchange market.
Currency experts said that the market was opened after two days holidays. Further a public holiday on October 19, 2021 put pressure on dollar demand.
They said that huge import bill during first quarter of the current fiscal year pushed up the dollar demand. The import bill of the country recorded an increase of 66.11 per cent during first quarter (July – September) 2021. The country has spent foreign exchange to the tune of $18.75 billion during first quarter of the current fiscal year as compared with $11.28 billion in the corresponding quarter of the last fiscal year.
The oil import bill is the major reason for the massive depreciation in the local currency. The oil import bill registered a phenomenal growth of 97 per cent to $4.59 billion during the first quarter of the current fiscal year as compared with $2.33 billion in the corresponding quarter of the last fiscal year.
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Weekly Review: Stock market likely to move positive
KARACHI: The stock market likely to move positive during next week on hope of resumption of IMF program.
Analysts at Arif Habib Limited said that the market to move positive as we get closer to resuming the IMF program and receiving a $1 billion tranche.
Whereas recent bouts of selling at the index has once again opened up valuations; we advise investors to cherry-pick blue chip stocks with a long term focus, they said.
Key short term risks include: regional volatility and the ensuing security concerns, together with PKR depreciation.
The benchmark 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 benchmark equity bourse closed in green after four weeks of bleeding. During the early part of the week investors resorted to panic selling amid lack of clarity on continuation of the IMF package as well as delay in the process to appoint a new Director General of the ISI (DG ISI).
Albeit, with Finance Minister assuring that the government would soon address concerns of the global lender and resume the IMF’s EFF, as well as PM’s statement allaying any rumors of a military-political divide, the KSE-100 index posted two swift back to back bull runs. The market closed at 44,821 points, (gaining 344 points / up by 0.8 per cent WoW).
Sector-wise positive contributions came from i) Commercial Banks (393 points), ii) Oil & Gas Exploration Companies (136 points), iii) Fertilizer (123 points), iv) Cement (98 points), and v) Pharmaceuticals (28 points). Whereas, sectors which contributed negatively were i) Technology & Communication (342 points), and ii) Food & Personal Care Products (50 points). Scrip-wise positive contributors were HBL (153 points), PPL (87 points), UBL (67 points), LUCK (59 points) and OGDC (42 points). Meanwhile, scrip-wise negative contribution came from TRG (260 points), SYS (70 points) and PAKT (27 points).
Foreign selling continued this week, clocking-in at USD 13.3 million compared to a net sell of USD 3.7 million last week. Major selling was witnessed in Fertilizer Sectors (USD 12.1 million), Commercial Banks (USD 7.8 million) and Cement (USD 3.11 million). On the local front, buying was reported by Insurance Companies (USD 12.2 million) followed by Mutual Funds (USD 3.4 million). Average volumes clocked-in at 342 million shares (up by 29 per cent WoW) while average value traded settled at USD 71 million (up by 20 per cent WoW).
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Only 2.6M returns amid putting taxpayers’ money on ads
The Federal Board of Revenue (FBR) in Pakistan has faced a shortfall in tax return submissions for the tax year 2021, despite significant spending on advertising and media campaigns aimed at encouraging taxpayers.
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Petrol price goes up to record high at Rs137.79/liter
ISLAMABAD: The government on Saturday increased the price of petrol to a record high at Rs137.79 per liter. The government announced to increase prices of all petroleum products with effect from October 15, 2021.
The price of petrol has been increased by Rs10.49 to Rs137.79 from Rs127.30 per liter. The price of High Speed Diesel (HSD) has been increased by Rs12.44 to Rs134.48 from Rs122.04 per liter. The price of kerosene oil has been enhanced by Rs10.95 to Rs110.26 from Rs99.31 per liter. Similarly, the price of light diesel oil has been increased by Rs8.48 to Rs108.35 from Rs99.51 per liter.
A notification issued by the Finance Division said at present, oil prices have risen around $85 a barrel, which is the highest since October 2018.
Importantly, entire energy chain prices have witnessed a strong surge in the past couple of months due to higher demand for energy inputs and supply bottlenecks.
In the current scenario, the government has absorbed the pressure and provided maximum relief to the consumers by keeping petroleum levy and sales tax to a minimum level. Therefore, prices worked out by OGRA have been approved, according to the statement.
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Exchange rates in PKR vs foreign currencies on Oct 16
KARACHI: Following are the exchange rates of foreign currencies in Pak Rupee (PKR) on October 16, 2021 (The rates are updated at 10:24 AM):
Currency Buying Selling Australian Dollar 124.85 126.35 Bahrain Dinar 386.75 388.50 Canadian Dollar 136.10 138.10 China Yuan 23.75 23.90 Danish Krone 23.45 23.75 Euro 197.20 199.20 Hong Kong Dollar 16.70 16.95 Indian Rupee 2.03 2.10 Japanese Yen 1.41 1.44 Kuwaiti Dinar 481.70 484.20 Malaysian Ringgit 36.45 36.80 NewZealand $ 96.45 97.15 Norwegians Krone 17.50 17.75 Omani Riyal 392.70 394.70 Qatari Riyal 39.90 40.50 Saudi Riyal 45.45 46.05 Singapore Dollar 124.50 126 Swedish Korona 18.35 18.60 Swiss Franc 159.90 160.80 Thai Bhat 4.80 4.90 U.A.E Dirham 46.65 47.25 UK Pound Sterling 233.60 236.10 US Dollar 171.60 172.60 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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Stocks gain 488 points on positive sentiments
The Pakistan stocks experienced a bullish trend on Friday as the benchmark KSE-100 index soared by 488 points, closing at 44,822 points. This marked a significant increase from the previous day’s closing of 44,334 points, reflecting a rise of 1.1 percent.
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