Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • “FBR not to take action directly against non-filers”

    “FBR not to take action directly against non-filers”

    KARACHI: The Federal Board of Revenue (FBR) will not take any action directly against non-filers or under-filers, Finance Minister Shaukat Tarin assured the members of Karachi Chamber of Commerce and Industry (KCCI).

    A statement issued by the KCCI stated that Finance Minister Shaukat Tarin had assured to review the matter of filers and non-filers and look into the possibility of re-examining the term ‘non-filer’ and ‘under-filer’ in consultation with stakeholders whereas in the meantime, “no one will suffer as FBR will not take the action directly.”

    FBR will share relevant data with Chambers and also upload the same on its website.

    The government intends to take help of artificial intelligence and assessment will be done through third party while appropriate time of 90 days will be provided to non-taxpayers for settlement, the Finance Minister added while speaking at a meeting with a delegation KCCI.

    Federal Minister for Energy Hammad Azhar, Advisor to PM on Commerce Abdul Razak Dawood, Chairman Federal Board of Revenue Ashfaq Ahmed and other senior officials of Finance Ministry and FBR also accompanied Shaukat Tarin at the meeting while KCCI’s delegation, which was led by Chairman Businessmen Group & Former President KCCI Zubair Motiwala, comprised of Vice Chairmen BMG Haroon Farooki & Jawed Bilwani, General Secretary BMG AQ Khalil and President KCCI Muhammad Idrees.

    Referring to Chairman BMG’s remarks about discrimination with export-oriented industries of Sindh with regards to supply of RLNG at $6.5 per MMBTU, Energy Minister Hammad Azhar agreed to supply RLNG at $6.5 per MMBTU to export-oriented industries of Sindh. In this regard, the Ministry of Finance will sanction subsidy and relevant notification will also be issued.

    Hammad Azhar stated that the Ministry of Energy will also convene a meeting to discuss KCCI’s concerns over gas crises in winter season so that they could explore ways and means for smooth supply of gas to industries/ consumers of SSGCL in winter season. MD SSGC will also be advised to hold a meeting with KCCI in this regard, he added.

    On the occasion, PM’s Advisor Abdul Razak Dawood said that they were considering waiver of duty on import of cotton yarn. It was also concurred that KCCI’s proposal to reduce concessional rate of 0.1 percent to 0.01 percent on Traders/ brokers of Cotton Yarn under SRO.333 (I) 2001 dated 02.05.2011 has been taken into consideration in the larger interest of value-added exports.

    Razak Dawood, while appreciating KCCI’s idea of giving Industry status to “Warehousing / Cold Chain / Cold Storage”, said that the government will look into this matter.

    He reiterated that Drawback on Local Taxes & Levies (DLTL) will either continue with same rate or the government may increase the rate of drawback whereas the old income tax claims will also be refunded at the earliest.

    Speaking on the occasion, Chairman Federal Board of Revenue (FBR) Dr Ashfaq Ahmed assured that the Government will review the matter pertaining to CNIC requirement and 3 percent tax which KCCI believes should not be mandatory but optional as 3 percent tax on sales to unregistered persons was already being collected hence there was no need for demanding CNIC. He also promised to hold a meeting within next week via zoom facility to discuss the progress on various taxation issues.

    In response to problems being faced because of the condition to put invoice and packing list inside imported container or consignment, the lawmakers assured to review KCCI’s proposal that the bank should only receive document when invoice and packing list is attached with the documents and consignment should be released with the provision of invoice and packing list from Customs.

    It was also assured that the government will also look into KCCI’s proposals to amend provision under S. No.4 in which a new section 114B has been inserted in Income Tax Ordinance 2001, providing discretionary powers to FBR to issue General Orders to disable mobile phones/SIMS, disconnect electricity and gas connection etc. to enforce filing of returns by the persons not appearing on the ATL. The Karachi Chamber, in this regard, has proposed the provision may be amended to substitute the words “Persons not appearing on ATL” with “Unregistered Persons” to achieve the purpose of broadening of tax-base.

    KCCI delegation, while conveying gratitude to Finance Minister for fulfilling his commitment of holding today’s meeting in Islamabad along with Hammad Azhar, Razak Dawood and others, expressed confidence over the stewardship and seriousness being exhibited by Shaukat Tarin towards resolving the problems being suffered by the business and industrial community.

    Finance Minister, in his concluding remarks, said that he will keep on visiting KCCI after every three months while Chairman FBR will also be visiting the Chamber on a monthly basis.

    Tax to GDP ratio at 20% prime objective: Tarin
  • PSX worst performing market in third quarter

    PSX worst performing market in third quarter

    KARACHI: Pakistan Stock Exchange (PSX) is one of the worst-performing markets in the third quarter of 2021, according to analysts.

    Pakistan was one of the worst-performing markets in 3Q2021 (as per Bloomberg). Brazil (-19 per cent) and Hong Kong (-15 per cent) were the only other markets that performed poorly than Pakistan.

    The leading markets were Zambia (+46 per cent) and Mongolia (+28 per cent). These are total returns in USD terms. MSCI EM was also down 9 per cent while MSCI FM increased by 2 per cent during 3Q2021. MSCI Pakistan recorded a decline of 19 per cent.

    The analysts at Topline Securities on Friday said that Pakistan’s benchmark KSE-100 index has registered a decline of 5 per cent in Pak Rupee (PKR) terms and 12 per cent in USD terms in the third quarter of 2021, after delivering consecutive gains during the preceding five quarters (average/quarter: 10 per cent in PKR terms and 12 per cent in USD terms).

    Almost all the losses during the quarter were witnessed in the last two weeks, where the KSE-100 dropped 2,371 points (-5 per cent) in last 13 trading sessions.

    It brings down KSE-100’s recovery from its low on March 25, 2020 to 65 per cent and gains in 2021 year to date to 3 per cent. KSE-100 is now 15 per cent from its peak seen in 2017 in PKR terms, however, market capitalization is down 54 per cent in US$ terms (from US$99.6 billion to US$45.7 billion).

    Concerns at the local bourse stemmed from higher-than-expected Current Account Deficit due to increasing domestic demand and rising international commodity prices. This is also reflected in PKR/USD parity, which deteriorated by 8 per cent in 3Q2021.

    In response, the Central Bank increased the Policy Rate by 0.25 per cent to 7.25 per cent and also have taken host of other measures to curb domestic demand. The federal government has spoken about increasing tariffs to slowdown the demand growth.

    During the quarter, MSCI also decided to downgrade Pakistan from Emerging Market (EM) to Frontier Market (FM).

    Weekly Review: stock market likely to move positively
  • Weekly Review: stock market likely to move positively

    Weekly Review: stock market likely to move positively

    KARACHI: The stock market is expected to move positively during the next week as scrips are trading at attractive valuations. Analysts at Arif Habib Limited said that IMF Review is starting from October 4, 2021, which if successful may provide much-needed respite to the ailing investment sentiment.

    (more…)
  • KSE-100 index eases by 28 points in mixed trading

    KSE-100 index eases by 28 points in mixed trading

    KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) declined by 28 points on Friday in mixed trading. The Index closed at 44,872 points as against the previous day’s closing of 44,900 points, showing a decline of 28 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range today with an oscillation of 404 points between +104 points and -300 points.

    Steel, Refinery, Power and O&GMCs largely remained positive, whereas selling pressure was witnessed in Cement, Banks, E&P and Technology sectors.

    PKR slipped further in the open market to cross 173 and the interbank market remained under pressure and above 170, remaining a cause of concern for foreign investors, who have been sustaining losses on old positions in E&P and Banks.

    Among scrips, TPL led the volumes with 15.3 million shares, followed by BYCO (14.2 million) and HASCOL (14.1 million).

    Sectors contributing to the performance include Cement (-51 points), E&P (-29 points), Power (-17 points), Chemical (+27 points), Engineering (+22 points) and Pharma (+18 points).

    Volumes declined from 372.4 million shares to 267.1 million shares (-28 per cent DoD). Average traded value also dipped by 34 per cent to reach US$ 52.9 million as against US$ 80.7 million.

    Stocks that contributed significantly to the volumes include TPL, BYCO, HASCOL, ASL and WTL, which formed 26 per cent of total volumes.

    Stocks that contributed positively to the index include SNGP (+17 points), COLG (+16 points), HBL (+13 points), AVN (+11 points) and EPCL (+10 points). Stocks that contributed negatively include LUCK (-28 points), KEL (-25 points), MCB (-18 points), TRG (-17 points) and GHGL (-17 points).

    Stock market gains 533 points amid buying
  • FBR surpasses quarterly revenue target by Rs186 billion

    FBR surpasses quarterly revenue target by Rs186 billion

    ISLAMABAD: Federal Board of Revenue (FBR) has surpassed the revenue collection target for the quarter (July – September) of the current fiscal year by Rs186 billion.

    According to provisional figures released by the FBR on Thursday, it collected net revenue of Rs. 1.395 trillion during the first quarter of the current fiscal year against the target of Rs. 1.211 trillion, exceeding by Rs186 billion.

    The FBR posted a growth of around 39 per cent in net collection for the quarter as the revenue body collected Rs1.004 trillion in the same quarter of the last fiscal year.

    The net collection for the month of September, 2021 realized Rs535 billion representing an increase of 31.2 per cent over Rs. 408 billion collected in September 2020. These figures would further improve before the close of the day and after book adjustments have been taken in to account.

    On the other hand, the gross collections increased from Rs. 1.059 trillion during July-September, 2020 to Rs1.454 trillion in the corresponding quarter of the current fiscal year, showing an increase of 37.3 per cent.

    The amount of refunds disbursed was Rs59 billion during July-September, 2021 compared to Rs49 billion paid in the same quarter of the last year, reflecting an increase of 20.2 per cent.

    This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry, according to a statement issued by the FBR.

    It is pertinent to mention that after collecting over 4.7 trillion and exceeding its assigned revenue targets set for tax year 2020-2021, the FBR has successfully maintained the momentum set in July, 2021. Its tax collection posted historic high growth in first quarter of current fiscal year.

    During first quarter, FBR has far surpassed its revenue target by Rs186 billion. This spectacular performance at the outset of the year shows that FBR is well on its way to achieving the assigned target of Rs. 5.829 trillion for the year despite the daunting challenges, compelling constraints posed by the corona pandemic, and sporadic tax cuts announced by the government as relief and price stabilization measures.

    Revenue crosses Rs4 trillion for first time: FBR chairman
  • PM directs relinquishment of occupied state land

    PM directs relinquishment of occupied state land

    ISLAMABAD: Prime Minister Imran Khan on Thursday directed to ensure strict enforcement of law for relinquishment of occupied state land.

    The Prime Minister chaired the meeting of the National Coordination Committee on Housing and Construction at Islamabad.

    The Prime Minister directed that strict enforcement of law should be ensured for the relinquishment of occupied state land.

    Emphasizing the importance of cadastral mapping the Prime Minister said that it will help the government to identify dead capital and its better utilization.

    The prime minister said that the government is ensuring the protection of forest lands for the conservation of the environment. He added that food security and climate change are currently the most important issues concerning the whole world, including Pakistan.

    The meeting was attended by MOS for Information Farrukh Habib, SAPM Dr Shehbaz Gill, Member National Assembly Aftab Siddiqui, Chairman CDA Amir Ahmed Ali, Chairman Naya Pakistan Housing Authority Lt. General (Retd) General Anwar Ali Haider, Surveyor-General Of Pakistan Major General Shahid Pervez and concerned officials. Concerned officials from all four provinces also attended the meeting via video link.

    The meeting was briefed in detail about development work in Islamabad. Sector I-15 has been completed with unprecedented pace, whereas the development of Ali Pur Farash Town project under Naya Pakistan Housing Authority will also be completed soon.

    The meeting was also briefed about the progress on infrastructure development projects in Islamabad. Construction of Park Enclave (Phase I, II & III), Rawal Chowk Flyover, Korang Bridge, Margalla Highway, 7th Avenue Interchange and IJP Road is going on at a steady pace and these projects are expected to be completed within defined timelines.

    Moreover, the meeting was informed that the building of 150 beds Capital Hospital is complete and its equipment is in the process of procurement. Chairman CDA also briefed on the digital mapping of forest areas of Islamabad. It is not only complete, but it has also helped in the identification of encroached land. Prime Minister directed that strict action must be taken against Land Mafias involved in encroachment of forest land, natural waterways and state-owned property.

    Later on, the Surveyor-General of Pakistan briefed the meeting on Cadastral Mapping of Islamabad Capital Territory, Lahore and digitization of state-owned land in Pakistan.

    Regarding Islamabad, the meeting was informed that the process is near to completion and the collected data has also been uploaded to web application whereby the title holders will also be given a distinct login ID. The login ID provided to the title holders will help access to all the details of the property hence bringing transparency in the system.

    The ground survey, Property Tax record and census data are being utilized in Lahore to accurately map the city. Moreover Borad Of Revenue Data in Punjab, Balochistan and Khyber Pakhtunkhwa is being digitalized at a steady pace.

    Forest Demarcation exercise in the country is 97 per cent complete and digitization of state-owned land is also expected to be completed in an upcoming couple of months.

    The meeting was also briefed in detail on encroachment on Circular Railway, Nullahs and forest land in Karachi. The meeting was briefed on Site development zones proposed for better utilization of land and provision of basic amenities to housing societies.

    Some obstacles challenging construction sector: PM
  • Petrol price increases to record high at Rs127.30/liter

    Petrol price increases to record high at Rs127.30/liter

    The government on Thursday announced a significant hike in the price of petrol, increasing it by Rs 4 per liter, bringing the cost to an all-time high of Rs 127.30 per liter. This marks the highest petrol price in Pakistan’s history. The new prices, along with adjustments to other petroleum products, will take effect from October 1, 2021.

    (more…)
  • ECC approves import of 550,000MT wheat

    ECC approves import of 550,000MT wheat

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a summary for import of 550,000 metric tons of wheat for the fiscal year 2021/2022.

    Finance Minister Shaukat Tarin presided over the meeting of the ECC.

    The ECC approved the summary by the ministry of National Food Security and Research (NFS&R), regarding the award of the fifth international wheat tender to import 550,000 MT (after matching process) of wheat for the FY 2021/2022.

    ECC granted approval to the summary presented by the Ministry of Interior for Technical Supplementary Grant amounting to Rs.83.3 million for procuring services from NADRA regarding the project for automation of Power of Attorney (POA) for Overseas Pakistanis. The ECC accorded approval with the direction that MOFA and M/o Interior may hold a joint consultative session to work out modalities in this regard.

    Ministry of Industries and Production tabled a summary before ECC regarding the continuation of the Prime Minister’s relief package-2020 for the provision of five essential items on subsidized rates which are scheduled to expire on September 30, 2021. The ECC granted an extension for one month with a direction to present a detailed summary before ECC, keeping in view, international price hike in essential food commodities.

    On a summary moved by the Power Division regarding quarterly tariff adjustments of K-Electric, the ECC decided that the Power Division may approach NEPRA to review its earlier decision on the issue and present an updated summary before ECC for consideration.

    Power Division tabled another summary regarding levy of Sales Tax on subsidy granted by Federal Government to DISCOs. After seeking input from all concerned, the ECC decided that the matter may be referred to the Law Division for seeking opinion and legal interpretation may be presented before the Committee for further deliberations.

    The ECC considered and approved a summary, presented by the Ministry of Information Technology and Telecommunications, regarding revised budget estimates for the FY 2020-21 and FY 2021-22 respectively.

    The ECC approved summary by the Power Division regarding approval of payment mechanism for TNB Liberty Power Limited.

    The ECC also approved the proposal as part of settlement with other relevant IPPs.

    Lastly, on a summary moved by the M/o Industries and Production, the ECC approved a tender for import of 100,000 MT of urea for building strategic reserves of urea fertilizer during the Rabi season FY 2021-22.

    The meeting was attended by Federal Minister for Planning Asad Umar, Federal Minister for Energy Hammad Azhar, Federal Minister for Railways Azam Khan Swati, Federal Minister for National Food Security & Research Syed Fakhar Imam, Federal Minister for Interior Sheikh Rasheed Ahmad, MOS for Information Farrukh Habib, Federal Secretaries, Chairman FBR and other senior officers.

    ECC stresses commodities stocks amid Afghan situation
  • Exchange rates in PKR vs foreign currencies on Sept 30

    Exchange rates in PKR vs foreign currencies on Sept 30

    KARACHI: Following are the exchange rates of foreign currencies in Pak Rupee (PKR) on September 30, 2021 (The rates are updated at 11:40AM):

    CurrencyBuyingSelling
    Australian Dollar123.10125.10
     Bahrain Dinar386.60388.36
     Canadian Dollar136.10138.10
     China Yuan23.7023.85
     Danish Krone23.4023.70
     Euro199.10201.10
     Hong Kong Dollar16.6016.85
     Indian Rupee2.032.10
     Japanese Yen1.411.44
     Kuwaiti Dinar481.50484
     Malaysian Ringgit36.4036.75
     NewZealand $96.2596.95
     Norwegians Krone17.4517.70
     Omani Riyal392.60394.60
     Qatari Riyal39.7540.35
     Saudi Riyal45.9046.40
     Singapore Dollar123.70125.20
     Swedish Korona18.2518.50
     Swiss Franc159.70160.60
     Thai Bhat4.804.90
     U.A.E Dirham47.4047.90
     UK Pound Sterling234.10236.60
     US Dollar171.40172.40

    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.

  • FBR assures traders of facilitating Pak-Afghan trade

    FBR assures traders of facilitating Pak-Afghan trade

    ISLAMABAD: Federal Board of Revenue (FBR) on Saturday assured the traders of providing all facilities for the clearance of goods at the Pak-Afghan border.

    Chairman Federal Board of Revenue, Dr. Muhammad Ashfaq Ahmad accompanied by Syed Tariq Huda Member(Customs Operations) and Saeed Jadoon Member (Customs Policy) on Saturday visited Torkham Border and reviewed the pace and quality of services being provided by Pakistan Customs to facilitate trade between Pakistan and Afghanistan.

    Immediately after his arrival, he ensured the clearance of about 1400 trucks loaded with fruit from Afghanistan which had got stuck at the border.

    The customs staff assured him to accelerate the process of 100 more trucks awaiting clearance.

    Earlier, he held an important meeting with traders from both sides of the border and assured them of all possible assistance by FBR in ensuring the smooth and easy flow of bilateral trade.

    He positively hoped that the Customs staff posted there will maintain the highest standards of professional conduct in the discharge of their official duty.

    It is pertinent to mention that on Friday FBR had issued an important circular granting special exemption from Sales Tax to the import of fresh fruit from Afghanistan.

    This rare concession by FBR is being appreciated by traders from both sides as a landmark decision that will certainly promote trade between the two neighboring countries.

    A day earlier, the FBR issued a press release stating that the chairman would visit the Pak-Afghan border to oversee the function of currency declaration.

    The FBR through the press release denied reports of currency smuggling.

    It said Pakistan Customs has made it mandatory for all passengers flying out of the country to undergo thorough personal scrutiny and 100 per cent declaration of currency through an automated process in order to ward off this nefarious illegal activity. This leaves the little possibility of the subject undesirable practice.

    FBR rebuts currency smuggling to Afghanistan