Pkrevenue.com

Author: Hamza Shahnawaz

  • Petrol tax rate cut by 73% to lower global oil price impact

    Petrol tax rate cut by 73% to lower global oil price impact

    ISLAMABAD: The federal government has announced a reduction of 73 per cent in sales tax rate on supply of petrol in order lower the impact of high global oil prices.

    In this regard the Federal Board of Revenue (FBR) issued a notification i.e. SRO 1450(I)/2021 to reduce the sales tax rate on petrol and High Speed Diesel (HSD).

    According to the notification the rate of sales tax has been reduced to 1.43 per cent from the rate of 6.84 per cent. The FBR issued previous notification SRO 1327(I)/2021 on October 7, 2021.

    The revenue body also reduced the rate of sales tax on High Speed Diesel (HSD) to 6.75 per cent from 10.32 per cent.

    However, the sales tax rates on kerosene and Light Diesel Oil (LDO) have been kept unchanged at 6.70 per cent and 0.20 per cent, respectively.

    It is worth mentioning here that the normal rate of sales tax is 17 per cent. The present government has already reduced the rate of sales tax on petroleum products to the lowest level to minimize the impact of sharp rise in global oil prices.

    The government on November 04, 2021 notified increased in petroleum prices, which are now all time high.

    The petrol was fixed at Rs145.82 per litre instead of Rs137.79, showing an increase of Rs8.03. The price has been increased from previous high of Rs137.79.

    Similarly, the price of high speed diesel has been increased by Rs8.14 to Rs142.62 from Rs134.48.

    The rate of kerosene oil has been increased by 6.27 per liter to Rs116.53 from Rs110.26. Likewise, the price of light diesel oil has been increased by Rs5.72 per liter to Rs114.07 from Rs108.35.

    A notification issued by the Finance Division stated that on November 01, 2021, the prime minister had not agreed with the proposals worked out by the Oil and Gas Regulatory Authority (OGRA) and the finance division directed to maintain the prices as notified on October 16, 2021.

    It is pertinent to mention that maintaining the October 16, 2021 petroleum prices had some underlying concerns for cash flow issues due to short recovery of the cost, according to the statement.

    It is important to note that in the previous petroleum prices, already a significant relief was provided to the consumers. The government is cognizant of its responsibility to provide maximum relief to the consumers.

    “This has dented the petroleum levy budget of Rs152.5 billion during July – September, 2021 as compared to Rs20 billion realized only,” it said.

    Foregoing in view, prices of petroleum products have been increased partially as compared to the prices being worked out by the OGRA. If the government had accepted OGRA’s recommendations, the new prices would have been much higher.

    Infact, the government has absorbed the bulk of the pressure after making adjustment after making adjustment in the sales tax and petroleum levy. The collection of petroleum levy is far short of its fixed target for the first quarter of the fiscal year 2021/2022, it added.

    Petrol price increases to new high of Rs145.82 per liter
  • Foreign exchange reserves slightly up to $24.026 billion

    Foreign exchange reserves slightly up to $24.026 billion

    KARACHI: Pakistan’s foreign exchange reserves have increased by $100 million to $24.026 billion by the week ended November 05, 2021, as compared with $23.926 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The official foreign exchange reserves of the central bank increased by $126 million to $17.326 billion by the week ended November 05, 2021when compared with $17.2 billion a week ago.

    Meanwhile, the foreign exchange reserves held by the commercial banks fell by $26 million to $6.7 billion by week ended November 05, 2021 as compared with $6.726 billion a week ago

    Forex exchange reserves fall to $16.19 billion on sovereign bond repayment
  • Direct tea import from Tanzania to reduce prices: FPCCI

    Direct tea import from Tanzania to reduce prices: FPCCI

    KARACHI: The president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Nasser Hyatt Maggohas emphasized that tea prices can be quickly curtailed if imports are facilitated directly from Tanzania, which is a major producer of tea in the world.

    Pakistan should explore every possible avenue to control food inflation and tea is one of the major food items fueling inflation; as it is dependent on imports heavily, he added.

    Maggo said that it is perturbing to note that currently only 2 per cent of tea is being imported from Tanzania directly and pricing pressures in Kenyan tea markets are causing an added strain to foreign exchange reserves of Pakistan and exchange range volatility; and, exchange rate volatility is adding up to the miseries of importers and general public alike.

    Hanif Lakhany, VP FPCCI, apprised the Pakistani exporters of the potential to export a number of products to Tanzania in large quantities, e.g. value added textiles, pharmaceuticals, surgical goods, sports goods, fruits & vegetables, plastic ware, etc.

    Zeeshan Maqsood, Convener FPCCI’s Standing Committee on Tea Trade, said that Pakistan imports a huge amount of around 240 million kilograms of tea annually and Tanzanian share is only 3.5 million kilograms. Pakistan is a $600 million tea market and Tanzania stands to benefit a lot from getting a share out of it.

    Dr. Jacqueline Mkindi, CEO of Tanzania Horticulture Association, led the counterpart delegation and invited the Pakistani traders to explore the opportunities in textiles, pharmaceuticals, gemstones, minerals and fruits & vegetables.

    FPCCI considers the current trade volume of approximately $220 with Tanzania too short of the real potential and considers the psychological mark of $1 billion achievable within a short span of two to three years.

    FPCCI proposes enhancing SME turnover to Rs1.5 billion
  • Yarn merchants demand reduction in customs duty

    Yarn merchants demand reduction in customs duty

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded reduction in customs duty from 11 per cent to 7 per cent on import of yarn.

    Central Chairman of Pakistan Yarn Merchants Association (PYMA) Saqib Naseem has stressed that the existing custom duty of 11 percent on polyester yarn has to be brought down to 7 percent as done in the past when the previous governments provided this much-needed relief through Textile Packages that led to improving the overall productivity of textile manufacturers and also enhanced the exports.

    Although the government in this year’s budget announced to bring custom duty down to 9 percent but that stands unchanged at 11 percent. Similarly, the anti-dumping duty also needs to be abolished in the larger interest of textile sector otherwise the export targets will not be achieved due to likely cotton shortages and higher customs duties, he added while exchanging views at a meeting during the visit of PYMA delegation to Karachi Chamber of Commerce & Industry (KCCI).

    General Secretary Businessmen Group AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi and the Members of KCCI and PYMA’s Managing Committees were also present at the meeting.

    Central Chairman PYMA pointed out that commercial importers of yarn act as a bank for thousands of small-sized textile industries who cannot afford to import huge quantities of yarn but obtain this essential raw material from commercial importers therefore, the importers should be provided relief by reducing the exorbitant duties and duties which have to be brought at par with industries.

    He was of the opinion that prices of polyester yarn have risen sharply due to rising oil prices, increase in freight charges and the global shortage of containers. As a result, the textile industry, small and medium enterprises, especially power looms, were suffering due to high costs therefore, custom duties and taxes have to be brought down drastically.

    Saqib Naseem further requested KCCI to help in convincing the government to bring down the turnover tax back to 0.1 percent as many people were finding it hard to continue their business with high turnover tax due to limited margin.

    He also said that KCCI and PYMA have been enjoying cordial relations and it was heartening to see that many PYMA members have also discharged their duties at KCCI’s Managing Committee from time to time. “All PYMA members will go hand-in-hand with KCCI so that we could collectively work towards not only resolving PYMA issues but also other general issues of the business & industrial community”, he added.

    President KCCI Muhammad Idrees stated that the Karachi Chamber gives highest preference to all the issues being faced by PYMA members which were constantly being taken up with relevant ministers, advisors and all the authorities at the federal level. He said that although Finance Minister Shaukat Tarin always agrees to treat commercial importers of yarn and industries equally but the issue of higher duties on commercial importers stands unresolved as probably the bureaucracy was misguiding the minister. This pending issue has to be resolved and the commercial importers have to be provided relief by ensuring availability of a level playing field.

    PYMA delegation members also paid glowing tribute to Late Siraj Kassam Teli who always gave special attention and maintained good liaison with PYMA.

    KCCI urges SBP to restore PKR at Rs150 to dollar
  • Baqir meets governors of Saudi, Indonesia central banks

    Baqir meets governors of Saudi, Indonesia central banks

    KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) on Thursday met the Governors of Saudi Central Bank (SCB) and Bank Indonesia (BI) on the sidelines of the 15th Islamic Finance Services Board (IFSB) Summit 2021, hosted by the Saudi Central Bank, in Jeddah.

    In separate meetings with the two Governors, various topics of mutual interest related to Islamic Banking, digitalization, open banking, and financial inclusion were discussed.

    The Governors shared the vision that digital transformation could play a pivotal role in the expansion of Islamic Finance and help in improving financial inclusion. In the meeting with the Saudi Central Bank Governor, Dr. Baqir thanked the Saudi authorities for the financial support they had recently announced for Pakistan in the form of a deposit at the SBP and oil financing.

    Dr. Baqir briefed the Governors of the Saudi Central Bank and Bank Indonesia about the recent initiatives of SBP in the areas of Islamic banking, digitalization, financial inclusion and low-cost housing finance.

    While talking about digitalization of the financial sector he said that digitalization is a means to achieve the broader objective of making the financial sector more productive, efficient, and inclusive.

    Governor SBP especially highlighted that digitization offers the highest potential to accelerate the pace of financial inclusion. Technology driven solutions are the key to open doors of the financial sector for the unserved and underserved segments of the society, particularly the women.

    The Governors also shared their experiences during Covid-19 pandemic. Governor SBP apprised them about the various measures taken by the Government of Pakistan to successfully contain the spread of Covid in Pakistan. He also shared the measures taken by SBP to inject liquidity in the economy and banking sector during Covid that helped save jobs as the country went into a locked down situation.

    SBP for digital transformation of Islamic financial services
  • Dollar jumps to Rs174.19 at interbank closing

    Dollar jumps to Rs174.19 at interbank closing

    KARACHI: The US dollar jumped to Rs174.19 at the closing on Thursday making a fourth straight day gain.

    The Pak Rupee lost another Rs1.26 to the dollar from the previous day’s closing of Rs172.93 in the interbank foreign exchange market.

    Currency experts said that the rupee remained under pressure due to large external payments.

    The local currency made recovery after falling to the lowest level of Rs175.27 on October 26, 2021. The recovery in the local unit was due to the announcement of the Saudi government to support Pakistan in managing the balance of payment.

    The Saudi government announced an amount of $3 billion on October 26, 2021 that was to be transferred directly to the State Bank of Pakistan (SBP).

    The currency experts said that the rupee witnessed the massive depreciation due to the delay in Saudi package as well as IMF tranche.

    Meanwhile, the import bill remained on the higher side due to a surge in international commodity prices.

    The import bill registered a growth of 65.15 per cent to $25.06 billion during July – October 2021 as compared with $15.17 billion in the same period of the last fiscal year, according to the Pakistan Bureau of Statistics (PBS).

    Dollar advances to Rs172.93 at interbank closing
  • Today’s currency exchange rates in PKR – Nov 11, 2021

    Today’s currency exchange rates in PKR – Nov 11, 2021

    KARACHI: Following are the open market exchange rates of foreign currencies in Pak Rupee (PKR) in Pakistan on November 11, 2021 (The rates are updated at 09:50 AM Pakistan Standard Time):

    CurrencyBuyingSelling
    Australian Dollar (AUD)127.00128.50
    Bahrain Dinar (BHD)386.75388.50
    Canadian Dollar (CAD)138.00139.50
    China Yuan (CNY)23.7523.90
    Danish Krone (DNK)23.4523.75
    Euro (EUR)200.25202.25
    Hong Kong Dollar (HKD)16.7016.95
    Indian Rupee (INR)2.032.10
    Japanese Yen (JPY)1.411.44
    Kuwaiti Dinar (KWD)481.70484.20
    Malaysian Ringgit (MYR)36.4536.80
    NewZealand $ (NZD)96.4597.15
    Norwegians Krone (NOK)17.5017.75
    Omani Riyal (OMR)392.70394.70
    Qatari Riyal (QAR)39.9040.50
    Saudi Riyal (SAR)46.1546.65
    Singapore Dollar (SGD)127.00128.50
    Swedish Korona (SEK)18.5018.75
    Swiss Franc (CHF)159.90160.80
    Thai Bhat (THB)4.804.90
    U.A.E Dirham (AED)47.7548.200
    UK Pound Sterling (GBP)234.00236.50
    US Dollar (USD)173.50175.00

    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.

    Today’s foreign currency rates in PKR – Nov 10, 2021
  • LTO Karachi, PBC discuss tax issues

    LTO Karachi, PBC discuss tax issues

    KARACHI: A team of senior officials from Large Taxpayers Office (LTO) Karachi visited Pakistan Business Council (PBC) on Wednesday.

    Shahid Iqbal Baloch, Chief Commissioner Inland Revenue, Large Taxpayers Office (LTO) Karachi headed the team of tax officials. Kazi Hifzur Rehman, Commissioner Inland Revenue, Audit Zone-ll, LTO, Karachi also part of the team.

    LTO Karachi is the major revenue collecting arm of the Federal Board of Revenue (FBR).

    CEO PBC Ehsan Malik, Director Research PBC Samir S Amir and other member taxpayers of PBC attended the meeting.

    The chief commissioner highlighted the role of LTO, Karachi in collection of all domestic taxes particularly with reference to members of the PBC, who are the highest taxpayers of the country.

    The members of the Pakistan Business Council shared their views and issues of taxation with the Chief Commissioner-IR, LTO, Karachi who also ensured their timely completion and highlighted that the team of officers posted at LTO, Karachi are thorough professionals and it was reiterated that all their pending issues related to taxes shall be completed as per law accordingly.

    Aman Ghanchi, Company Secretary, Unilever Pakistan Limited proposed that to better understand various business cycles and processes, workshops may be arranged so that the department would better understand the trade of the taxpayers for effective implementation of the policies of the Board. That would also help improve the taxation within the country.

    Ehsan Malik, CEO, Pakistan Business Council also highlighted the exchange of industry notes by virtue of which old settled issues would not be repeated and resultantly there would be less pressure on the appellate side and precious time of the tax machinery as well as the businessmen would be saved.

    The members of the PBC appreciated the efforts of FBR in effective implementation of the policies of Government of Pakistan in a very effective and efficient manner.

    FBR surpasses quarterly revenue target by Rs186 billion
  • KSE-100 index gains 230 points on positive sentiments

    KSE-100 index gains 230 points on positive sentiments

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 230 points on Wednesday as positive sentiments prevailed during the day.

    The index closed at 46,630 points as against previous day’s closing of 46,400 points.

    Analysts at Arif Habib Limited said that the index stayed in the green zone throughout the day as the market celebrated the statement from Advisor to Prime Minister on Finance that no proposal for the PM to seek help of International Monetary Fund (IMF) chief was under consideration, which eventually gave confidence to investors.

    Market opened on a positive note as traders took bet on cement, steel and technology stocks.

    Accumulation was witnessed in the banking sector as investors eyeing towards rate hike in the upcoming monetary policy.

    On the institutional front, buying activity was observed in the cement sector as inflows appeared through mutual funds.

    Sectors contributing to the performance include Fertilizer (+80 points), E&P (+70 points), Technology (+21 points), Pharma (+21 points) and Power (+20 points).

    Volumes decreased from 434.7 million shares to 320.3 million shares (-26.3 per cent DoD). Traded value also decreased by 25.3 per cent to reach US$ 61.6 million as against US$ 82.5 million.

    Stocks that contributed significantly to the volumes include FNEL, SERF, GGL, TELE and TPLP.

    Stocks plunge by 715 points on PKR weakening
  • FBR’s power to issue sales tax ATL

    FBR’s power to issue sales tax ATL

    Section 21A of the Sales Tax Act, 1990 grants the Federal Board of Revenue (FBR) the authority to compile and maintain an Active Taxpayers List (ATL).

    (more…)