Author: Hamza Shahnawaz

Sindh announces tax relief measures in budget 2022-2023

KARACHI: The province of Sindh has announced sales tax relief measures in the budget 2022-2023 presented in the provincial assembly on Tuesday.

Sindh Chief Minister Syed Murad Ali Shah announced a number of measures to facilitate taxpayers in payment of sales tax on services.

READ MORE: Sindh increases salary by 15% from July 1, 2022

He said relief to public has been provided by extending existing measure to ensure that relief continues to reach common man. For this purpose;

Exemption from SST is being proposed on toll manufacturing services.

READ MORE: Sindh unveils Rs1.714 trillion budget for 2022/2023

5 per cent reduced SST rate for “Recruiting Agents” will continue for next two years i.e. up to 30th June, 2024. This relief is proposed for Pakistanis aspiring to work overseas.

Services provided by Cable TV Operators are levied at a reduced rate of 10 per cent, the existing relief is proposed to be extended for a further period of two years ending on 30th June, 2024.

Whereas, the following cable TV operators are proposed to be exempt:

a) Cable TV Operators in rural areas under PEMRA License of “R” Category to be exempt from SST till 30th June, 2023.

READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

The rate of SST on commission charges received by food delivery channels (i.e. Foodpanda, Cheetay Logistics, etc.) from Home Chefs is proposed to be reduced from 13 per cent to 8 per cent for a period of two (2) years ending on 30th June, 2024. This relief is proposed in order to encourage small scale businesses. In all other cases, the services provided or rendered by Commission Agents shall continue to be liable to SST at 13 per cent.

READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

The existing exemption on health insurance services is proposed to continue further for a period of one year till 30th June, 2023.

GIZ, a German development agency, facilitating development projects in Sindh, is proposed to be granted conditional exemption on Sales tax on services as indirect relief to the Public.

June 14, 2022
Sindh increases salary by 15% from July 1, 2022

KARACHI: The Sindh government on Tuesday announced a 15 per cent raise in salary of provincial government employees and 5 per cent increase in pension effective from July 01, 2022.

Sindh Chief Minister Syed Murad Ali Shah announced raise in pay and pension while presenting the provincial budget 2022-2023.

READ MORE: Sindh unveils Rs1.714 trillion budget for 2022/2023

The chief minister announced various relief measures for employees and pensioners during next fiscal year.

He said Adhoc Relief Allowances 2016, 2017, 2018, 2019 and 2021 at the rates admissible to employees of Federal Government are being merged and Revised Basic Pay Scale 2022 for Civil Servants of Government of Sindh is being introduced on the pattern of Federal Government.

Adhoc Relief Allowance at the rate of 15 per cent of Basic Pay Scales to Civil Servants of Government of Sindh w.e.f. 1st July 2022 is proposed.

READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

Disparity Allowance at the rate of 33 per cent of Basic Pay will be paid to Civil Servants in BPS-1 to 16 and at the rate of 30 per cent to Civil Servants in BPS-17 and above in lieu of the differential rate of Ad-hoc Relief Allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 & 2021, which are being abolished w.e.f 1st July, 2022.

Pensioners of Government of Sindh were already getting 22.5 per cent more increase in net pension than pensioners of Federal Government till February 2022. Therefore, an increase at the rate of 5 per cent of net pension will be paid to the pensioners of the Sindh Government w.e.f 1st July, 2022.

READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

Thus, after announcement of 10 per cent increase in net pension by Federal Government in March 2022 and enhancement of the rate of increase to 15 per cent from 1st July 2022, the pensioners of Government of Sindh will still be getting 12.5 per cent more of net pension than the pensioners of Federal Government.

READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

June 14, 2022

Foreign currency rates in Pak Rupee – June 14, 2022

KARACHI: Following are the open market exchange rates of foreign currencies in Pak Rupee (PKR) in Pakistan on June 14, 2022 (The rates are updated at 09:50 AM (Pakistan Standard Time):

Currency	Buying	Selling
Australian Dollar (AUD)	142.50	143.75
Bahrain Dinar (BHD)	536.97	541.47
Canadian Dollar (CAD)	157.95	159.30
China Yuan (CNY)	28.55	28.80
Danish Krone (DNK)	25.72	26.07
Euro (EUR)	212.50	214.50
Hong Kong Dollar (HKD)	28.40	28.75
Indian Rupee (INR)	2.58	2.66
Japanese Yen (JPY)	1.47	1.51
Kuwaiti Dinar (KWD)	656.48	661.48
Malaysian Ringgit (MYR)	45.86	46.31
NewZealand $ (NZD)	128.61	129.81
Norwegians Krone (NOK)	20.78	21.08
Omani Riyal (OMR)	525.09	529.59
Qatari Riyal (QAR)	55.47	55.97
Saudi Riyal (SAR)	53.85	54.60
Singapore Dollar (SGD)	144.00	145.3
Swedish Korona (SEK)	20.26	20.56
Swiss Franc (CHF)	204.38	206.13
Thai Bhat (THB)	5.81	5.91
U.A.E Dirham (AED)	55.50	56.30
UK Pound Sterling (GBP)	250.00	252.50
US Dollar (USD)	203.00	205.00

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.

June 14, 2022

Pakistani Rupee to US Dollar on June 14, 2022

KARACHI: Following are the rates of buying and selling of one US dollar (USD) in Pakistani Rupee (PKR) in the open market on June 14, 2022:

Buying: Rs 203 to the US Dollar

Selling: Rs 205 to the US Dollar

The buying rate means an exchange company or a bank buys foreign currency from a customer.

The selling rate means an exchange company or a bank sells the foreign currency from a customer.

The rate has been updated at 09:45 AM Pakistan Standard Time (PST).

The US Dollar /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

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.

READ MORE: Pakistani Rupee to US Dollar on June 13, 2022

June 14, 2022
Pakistani Rupee to UAE Dirham on June 14, 2022

KARACHI: Following are the rates of buying and selling of one UAE Dirham (AED) in Pakistani Rupee (PKR) in the open market on June 14, 2022:

Buying: Rs 55.5 to the UAE Dirham

Selling: Rs 56.3 to the UAE Dirham

The buying rate means an exchange company or a bank buys foreign currency from a customer.

The selling rate means an exchange company or a bank sells the foreign currency from a customer.

The rate has been updated at 09:38 AM Pakistan Standard Time (PST).

The UAE Dirham /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

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.

READ MORE: Pakistani Rupee to UAE Dirham on June 13, 2022

June 14, 2022
Pakistani Rupee to Euro on June 14, 2022

KARACHI: Following are the rates of buying and selling of one Euro (EUR) in Pakistani Rupee (PKR) in the open market on June 14, 2022:

Buying: Rs 212.5 to the Euro

Selling: Rs 214.5 to the Euro

The buying rate means an exchange company or a bank buys foreign currency from a customer.

The selling rate means an exchange company or a bank sells for foreign currency from a customer.

The rate has been updated at 09:35 AM Pakistan Standard Time (PST).

The Euro /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

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.

READ MORE: Pakistani Rupee to Euro on June 13, 2022

June 14, 2022
Pakistani Rupee to UK Pound Sterling on June 14, 2022

KARACHI: Following are the rates of buying and selling of one UK Pound Sterling (GBP) in Pakistani Rupee (PKR) in the open market on June 14, 2022:

Buying: Rs 250 to the UK Pound Sterling

Selling: Rs 252.5 to the UK Pound Sterling

The buying rate means an exchange company or a bank buys foreign currency from a customer.

The selling rate means an exchange company or a bank sells the foreign currency from a customer.

The rate has been updated at 09:30 AM Pakistan Standard Time (PST).

The UK Pound Sterling /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

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.

READ MORE: Pakistani Rupee to UK Pound Sterling on June 13, 2022

June 14, 2022
Pakistani Rupee to Saudi Riyal on June 14, 2022

KARACHI: Following are the rates of buying and selling of one Saudi Riyal (SAR) in Pakistani Rupee (PKR) in the open market on June 14, 2022:

Buying: Rs 53.85 to the Saudi Riyal

Selling: Rs 54.6 to the Saudi Riyal

The buying rate means an exchange company or a bank buys foreign currency from a customer.

The selling rate means an exchange company or a bank sells for foreign currency from a customer.

The rate has been updated at 09:24 AM Pakistan Standard Time (PST).

The Saudi Riyal /PKR parity depends on open market rates, they are set by the market forces based on foreign currency demand.

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.

READ MORE: Pakistani Rupee to Saudi Riyal on June 13, 2022

June 14, 2022

High tax may erode banks’ earnings up to 20%

KARACHI: The proposed corporate tax rate for banks may erode earnings of the sector by up to 20 per cent on annual basis.

The government presented federal budget on June 10, 2022 and proposed enhancement in tax rates for banking companies.

The government announced various taxation measures on the banking sector in the Budget 2022/2023. This includes i) increase in corporate tax to 45 per cent against existing 35 per cent, ii) imposition of poverty alleviation tax of 2 per cent and iii) hike in tax rate in case of adverse Asset to Deposit Ratio (ADR).

New rates would be applicable from Jul 1, 2022 subject to the approval of National Assembly.

Analysts at KTrade expect this development to erode the KTrade’s banking sector earnings by 15 per cent – 20 per cent cumulatively, on an annual basis. Consequently, they have revised down target prices by 15 per cent.

1) Corporate tax enhanced to 45 per cent: The government proposed to increase the taxation to 45 per cent from 2023 onwards in order to meet the direct tax collection target of Rs2.6 trillion for 2022-2023. The analysts expect this to erode banking sector’s earnings by an average of 10.5 per cent on an annual basis.

Type of Tax	2022	2023 and onwards
Corporate Tax	35 per cent	45 per cent
Super Tax	4 per cent	0 per cent
Poverty Alleviation Tax	2 per cent	2 per cent

2) Adverse tax measures on low ADR: Banks would face higher taxation if the ADR threshold falls below 50 per cent. As a reminder, average ADR of banking sector improved to 48.5 per cent in Mar22 as opposed to 45.2 per cent in the same period last year. New rates as per the Finance Bill are as follows:

Gross Advances to Deposits Ratio	Existing Rate of Tax	Proposed Rate of Tax
Upto 40 per cent	40.0 per cent	55.0 per cent
40 per cent – 50 per cent	37.5 per cent	49.0 per cent
Exceeding 50 per cent	35.0 per cent	45.0 per cent

Within Ktrade universe, the analysts highlight BAFL, MEBL and HBL to remain immune because of exceeding the threshold ADR with ADR standing at 60 per cent, 54 per cent, and 50 per cent respectively.

Meanwhile, UBL, MCB and ABL with ADR of 45 per cent would face the negative consequences of higher taxation of 49 per cent.

This would result in further earnings attrition to the tune of 7 per cent for the said companies.

June 14, 2022

Pakistan car sales climb up by 50% in 11 months

KARACHI: The sales of locally assembled cars in Pakistan have surged by 50 per cent during 11 months (July – May) of 2021/2022 as compared with the same period of the last fiscal year, according to data released on Monday.

The car sales climbed up to 250,888 units in first 11 months of the current fiscal year as compared with 167,647 units in the corresponding months of the last fiscal year.

READ MORE: Pakistan massively increases taxation on motor vehicles

Analysts believed the surge in sales of locally assembled cars in 11 months to macroeconomic recovery.

Pakistan car sales (including sales of Non-PAMA members) clocked in at 27000 units, which is almost flat Month on Month (MoM) in May 2022 amid higher car prices, and Eid holidays at the start of month. The same is up by 46 per cent YoY.

Analysts at Topline Securities believe economic slowdown, increase in interest rates and further tightening of financing requirements by SBP will significantly impact car sales moving ahead.

READ MORE: Pakistan allows conditional import of CBU vehicles

Hyundai Nishat posted strong numbers registering an increase of 33 per cent MoM led by increase in sales of Elantra (+148 per cent MoM) and Sonata (+37 per cent MoM).

Honda Atlas Car (HCAR) recorded second highest increase of 11 per cent MoM to 2,910 units in May-2022 led by increase in sales of City & Civic by 18 per cent MoM. Similarly, Indus Motors (INDU) also posted increase of 2 per cent MoM due to increase in sales of Corrolla & Yaris by 4 per cent MoM.

Pak Suzuki (PSMC) was the only player which reported decline of 3 per cent MoM to 12,212 units in May-2022. All variant of company reported decline on MoM basis except for Wagon-R and Alto where sales were up by 24 per cent MoMand 9 per cent MoM respectively.

READ MORE: Honda Cars declares 40% surge in annual profit

Amongst Tractors, Millat Tractors (MTL) recorded increase of 12 per cent MoM while Al Ghazi Tractors (AGTL) recorded decline of 8 per cent MoM.

Pakistan bike sales were down by 2 per cent MoM while remained flat on YoY in May-2022. This takes 11MFY22 bike sales to 1.7mn units, down 4 per cent YoY.

Trucks & Buses sales were up 3 per cent MoM and 23 per cent YoY in May-2022. This takes 11MFY22 sales to 5,909 units, up 50 per cent YoY led by increased transportation activity.

READ MORE: SBP cuts car loan tenure to three years

June 13, 2022