Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SBP to launch rewards for inward remittances

    SBP to launch rewards for inward remittances

    ISLAMABAD: State Bank of Pakistan (SBP) will launch incentives/ rewards for overseas Pakistanis on transactions of inward remittances.

    The SBP will launch a mobile phone application for overseas Pakistanis, which will offer incentives/rewards to overseas Pakistani against each remittance transaction in accordance under criteria.

    The above application will be formally launched towards the end of October 2021, this was discussed at a meeting of Economic Coordination Committee (ECC) of the Cabinet of Wednesday.

    Finance Minister Shaukat Tarin chaired the meeting. The Secretary Finance made a detailed presentation on National Remittance Loyalty Program (NRLP) before the Committee.

    He stated that remittances form backbone of the economy. The proactive policy measures by the Government and the SBP have incentivised the overseas Pakistanis and encouraged them to remit their hard earned money through formal channels.

    This has contributed in achieving record remittance of $29.4 billion in the last fiscal year. It’s a clear reflection of confidence in Pakistan’s economy by overseas Pakistanis.

    After due deliberations, the ECC approved the structure and estimated financial impact of the NRLP with a view to incentivize remitters to transfer funds through formal channels thus further strengthening the inflow of remittances.

    The Finance Minister directed to exercise due diligence before the launch for seamless integration with all service providers to ensure smooth working of NRLP.

    Among others, Federal Minister for Interior Sheikh Rasheed Ahmed, Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Energy Hammad Azhar, Federal Minister for Planning and Development Asad Umar, Advisor to the PM on Commerce Abdul Razak Dawood, Advisor to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Power & Petroleum Tabish Gauhar, SAPM on Finance and Revenue Dr. Waqar Masood, Federal Secretaries and other senior officers participated in the meeting. Governor State Bank of Pakistan Reza Baqir also participated through a video link.

    Remittances flow $2bn for 13th consecutive month
  • Car sales sharply increase by 114% on tax cuts

    Car sales sharply increase by 114% on tax cuts

    KARACHI: The car sales posted a sharp rise of 114 per cent in July 2021 owing to tax cuts announced in the Finance Act, 2021.

    The car sales increased to 24,918 units in July 2021 as compared with 11,659 units in the same month of the last year.

    Analysts at Topline Securities said that the sharp increase in car sales might be attributed to tax incentives announced through the Finance Act, 2021.

    The analysts said that the sales was around 27K, including non-member Lucky Motor Corporation i.e. KIA.  

    As reported by Pakistan Automotive Manufacturers Association (PAMA), car sales have increased by 114 per cent YoY to 24,918 units where the volumetric increase was mostly led by Pak Suzuki Motor Company (PSMC) and Indus Motor (INDU).

    To recall, the government had announced reliefs and tax-cuts in the federal budget which resulted in reduction in car prices across the board.

     As a result, customers had held back there purchases till July 2021.

    PSMC volumes are up by 197 per cent MoM to 15,181 units. INDU registered an increase of 48 per cent MoM to 6,715 units.

     However, HCAR sales were on the lower side with a decline of 30 per cent MoM largely due to the anticipated roll out of new model of Honda City.

    On the new-entrants front, Hyundai Nishat registered 4 per cent MoM increase to 627 units with the inclusion of its new model “Sonata”.

    Lucky Motor Corporation sold around 1,600 to 1,800 units in July-2021, which are similar volumes to the prior month.

    Car sales climb up by 54pc in 10 months
  • KSE-100 index up by 241 points on better earning hopes

    KSE-100 index up by 241 points on better earning hopes

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 241 points on Wednesday on better earning hopes in listed entities.

    The index closed at 47,377 points as against 47,135 points showing, an increase of 241 points.

    Analysts at Arif Habib Limited said that the market gained close to 500 points during the session.

    Sentiment was buoyant on the expectation of healthy earnings by key listed entities which helped propped up the market.

    Besides, incentives issued in favour of technology firms and finance minister’s notice regarding inquiry against stock brokers also helped develop positive sentiment.

    Banks, O&GMCs, Cement, Power and Technology stocks performed well.

    Refinery sector also performed well due to anticipation of refinery policy being finally put to approval of Cabinet.

    Among scrips, GGL led the volumes with 27.6 million shares, followed by WT (26.7 million) and EPCL (25.9 million).

    Sectors contributing to the performance include Technology (+99 points), Power (+26 points), Fertilizer (+24 points), Autos (+17 points) and Pharma (+15 points).

    Volumes increased from 370 million shares to 382.6 million shares (+3 per cent DoD). Average traded value also increased by 29 per cent to reach US$ 95.8 million as against US$ 74 million.

    Stocks that contributed significantly to the volumes include GGL, WTL, EPCL, BYCO and TELE, which formed 31 per cent of total volumes.

    Stocks that contributed positively to the index include TRG (+77 points), HUBC (+27 points), ENGRO (+26 points), SYS (+24 points) and INDU (+22 points). Stocks that contributed negatively include BAHL (-15 points), MCB (-9 points), EFERT (-6 points), CHCC (-5 points) and FABL (-5 points).

    PSX witnesses range bound trading activity
  • MCB Bank’s 2QCY21 results above market expectations

    MCB Bank’s 2QCY21 results above market expectations

    KARACHI: MCB Bank on Wednesday announced a profit after tax of Rs7.9 billion for second quarter ended June 30, 2021.

    Analysts at Khadi Ali Shah Bukhari (KASB) said that the result is above estimates and street consensus.

    The deviation is mainly on account of recognition of provisioning reversal worth Rs1.8 billion during the quarter. The result was accompanied with an interim cash dividend of Rs5.0 per share.

    MCB’s profitability increased 12 per cent YoY during second quarter April – June of 2021 attributed to provisioning reversal.

    However, NII declined by 17 per cent YoY as the policy rate remained unchanged during the period under review.

    NFI increased by 46 per cent YoY in 2QCY21 as lockdown restrictions were eased off and economic activity picked up.

    Major support came from 17 per cent YoY jump in fee income that clocked in at PKR 3.0 billion as against PKR 2.5 billion. Additionally, other income increased to PKR 661mn as opposed to PKR 61mn in corresponding period last year.

    Notably, the bank recognized a provisioning reversal of PKR 1.8 billion that resulted in expansion in bottom-line. We expect a similar momentum in coming quarters with lower risk of provisioning as business activity has normalized.

    The bank recorded higher effective tax rate of 45 per cent which we believe is attributed to new taxation measures introduced in Budget FY22. This is in-line with industry’s ETR as banks have shown prudence.

    Additionally, C/I improved to 43 per cent as opposed to 45 per cent in corresponding period last year that lent support to MCB’s profitability.

    We have an Outperform stance on the stock and our target price stands at PKR 220/sh. The stock is trading at a forward P/B of 1.13x and offers a dividend yield of 12 per cent

  • MCC Gwadar announces auction of vehicles on Aug 13

    MCC Gwadar announces auction of vehicles on Aug 13

    KARACHI: Model Customs Collectorate (MCC), Gwadar has announced auction of old and new lot of confiscated vehicles to be held on August 13, 2021.

    The auction will be held at Customs House, Gaddani on ‘as is where is’ basis.

    The collectorate to auction following confiscated vehicles:

    01. Toyota Land Cruiser, Reg No. BC-0448, Chassis No. HJ61-002060, Engine No. Nil, Model: 1986

    02. Hino Bus, Reg No. BSB-808, Chassis No. AK1JRKA-16027, Engine JO8CB16832, Model:2012

    03. Coach, Reg No. BSA-515, Chassis No. AK1JMKA-1415, Engine No. Nil, Model: Nil

    04. Toyota Land Cruiser (Red), Reg No. BA-8164, Chassis No. BJ160-009711, Engine No. Not Traceable, Model: 1985

    05. Indus Corolla Car, Reg No. GF-1411, Chassis No. AE100-0028693, Engine No. Not Traceable, Model: 1994

    06. Land Cruiser Prado, Reg No. Not Traceble, Chassis No. LJ78-0002499, Model. 1990

    07. Toyota Land Cruiser, Reg No.BA-5186, Chassis No. HJ60-009651, Model. 1984

    08. Toyota Land Cruiser, Reg: JAA-889, Ch# BJ-60-020679, Model: 1988

    09. Mitsubishi Pajero, Reg: JAL-231, Ch# LO48G-3005856, Model: 1985

    10. Land Cruiser, Reg: QAB-1649, Ch# HJ61-013994, Model:1989

    11. Toyota Jeep Land Cruiser, Reg: AFR-2015, Ch: FJ40-371932, Model: 1989

    12. Toyota Land Cruiser, Reg: Nil, Ch:# LJ78-0039971, Eng:# ZL-33868, Model: 1993

    13. Honda Civic Car, Reg: Nil, Ch:# ESI-1600827, Eng:#D1610173-004871, Model: 2002

    14. BMW, Reg: Nil, Ch:# WBAGL62090DJ92594, Eng:#CC-300, Model: 2002

    15. Toyota Surf, Reg: Nil, Ch:# KZN130-9032504, Eng:#Not Traceable, Model: 1993

    16. Toyota Land Cruiser, Reg No. LSA-3469, Chassis No.FJ55-88824, Engine No. Nil, Model: 1992

    17. Hino Bus, Reg No. CH-14538, Chassis No. AK8JRKA-14538, Engine No. Nil, Model: 2016

    18. Hino Bus, Reg No. BSA-554, Chassis No. AK1JRKA-11056, Engine No. Nil, Model: Nil

    19. Hino Bus, Reg No. JB-3335, Chassis No. AK8JRKA-15635, Model: 2012

    20. Hino Bus, Reg No. BSA-327, Chassis No. AK17X-41808, Engine No. –Model: 1992

    21. Hino Bus, Reg No. BSA-571, Chassis No. AK-I-JRKA-16707, Engine No. Nil, Model: 2011

    22. Toyota Land Cruiser, Reg No. QBA-3037, Chassis No. FZ180-016013, Model Nil

    23. Nissan Sunny Car, Reg No. Nill, Chassis No. JN1BDAB14Z0336115, Engine No. GMI-6080565, Model: Nill

    24. Honda Accord, Reg No. AVP-786, Chassis No. CL7-3003313, Engine No. N/A, Model: Nill

    25. Toyota Altis Car, Reg No. AZR-182, Chassis No. ZZE142-7403917, Engine No. N/T, Model: N/T

    26. Mitsubmishi Pejero, Reg No.KB-1782, Chassis No. CL048VFY100117, Engine No. N/T, Model: N/T

    27. Mitsubishi Pejero, Reg No.Nill, Chassis No. V45-4401374, Engine No. 2L2678454, Model: 1998

    28. Mitsubishi Pejero, Reg No.JAB-248, Chassis No. LJ78-00151955, Engine No. –TE, Model: Nill

    29. Mitsubishi Pejero (03 Door), Reg No.LSC-5465, Chassis No. V24-7700536, Engine No. 4D56-T7UF, Model: Nill

    30. Toyota Land Cruiser, Reg No.BD-4472, Chassis No. FZJ80-0022240, Engine No. N/T, Model:1992

    31. Toyota Land Cruiser, Reg No.BF-7385, Chassis No. HZJ80-0011965, Engine No. N/T

    32.  Toyota Land Cruiser, Reg No.Nill, Chassis No. LENFN28FX95300066, Engine No. 312684, Model:Nill

    33. Toyota Land Cruiser Prado, Reg No.JAF-883, Chassis No. IZJ78-0027017, Engine No.1KZIT, Model:1996

    34. Toyota Hilux Pickup, Reg No.WAE-893, Chassis No. RN43-008601, Engine No.Nill, Model:Nill

    35. Toyota Land Cruiser, Reg No.JAA-038, Chassis No. HJ61-006515, Engine No.1158881, Model:1987

    36. Toyota Land Cruiser, Reg No.JAA-195, Chassis No. LJ71-0003920, Engine No.2L-1651949, Model:Nill

    37. Pejero, Reg No.JAA-983, Chassis No. CL0048VGJ400698, Engine No.Nill, Model:Nill

    38. Toyota Land Cruiser, Reg No.JAC-265, Chassis No. KZJ78-0001358, Engine No.1KZ-TE-0005609, Model:NIll

    39. Toyota Land Cruiser, Reg No.JAD-117, Chassis No. FZ-J80-0163691, Engine No.Nill, Model:Nill

    40. Hino Mazda Truck, Reg No. JW-1236, Chassis No. AK176KA-43256, Engine No. 12181, Model: 1992

    New Lots

    41. Toyota Mark-X Car, Reg No. AYH-634, Chassis No. GRX121-3002167, Engine No. 3GR-00666157, Model: 2007

    42. Toyota Prius Car, Reg No. AVK-555, Chassis No. NHW20-0008279, Engine No. A.311091, Model: 2004

    43. Toyota Mark-X Car, Reg No.AFR-2020, Chassis No. GRX121-1002780, Engine No. 3GR-FSE, Model: 2004

  • Bank holiday announced on August 14

    Bank holiday announced on August 14

    KARACHI: The State Bank of Pakistan (SBP) on Tuesday announced bank holiday on August 14, 2021.

    The State Bank will remain closed on Saturday, August 14, 2021 on the occasion of Independence Day as declared by the government of Pakistan.

    The central bank through a circular informed the presidents and chief executives of all banks, development financial institutions (DFIs) and Microfinance Banks (MFBs).

    Bank holiday announced
  • PSX witnesses range bound trading activity

    PSX witnesses range bound trading activity

    KARACHI: Pakistan Stock Exchange (PSX) on Tuesday witnessed range bound trading activity during the day. The benchmark KSE-100 index gained 11 points to end at 47,135 points as against previous day’s closing of 47,124 points, showing an increase of 11 points.

    Analysts at Arif Habib Limited said that the market traded range bound with an oscillation between -195 points and +149 points.

    Activity remained tilted towards Technology sector, which helped the Index put an increment and in volume terms led the index.

    Most of the volume went to WTL, however, NETSOL, TRG and AVN contributed to an uptick in Index. On a net basis, Cement, Textile, Pharma and Steel traded in the positive region, whereas E&P, Banks generally contributed to the negative side of the Index.

    Among scrips, WTL topped the volumes with 42.9 million shares, followed by TELE (29.4 million) and ANL (28.4 million).

    Sectors contributing to the performance include Power (-23 points), Banks (-16 points), Chemical (-13 points), Cement (+30 points), Food (+16 points) and Pharma (+11 points).

    Volumes increased from 337.3 million shares to 370.0 million shares (+10 per cent DoD). Average traded value also increased by 7 per cent to reach US$ 74.1 million as against US$ 69.2 million.

    Stocks that contributed significantly to the volumes include WTL, TELE, ANL, TPL and GGL, which formed 37 per cent of total volumes.

    Stocks that contributed positively to the index include LUCK (+22 points), ENGRO (+15 points), FCEPL (+14 points), TRG (+12 points) and UNITY (+11 points). Stocks that contributed negatively include MCB (-18 points), COLG (-17 points), HUBC (-16 points), DAWH (-14 points) and SYS (-11 points).

    KSE-100 index ends down by 366 points
  • FBR explains taxation of erstwhile FATA/PATA industries

    FBR explains taxation of erstwhile FATA/PATA industries

    ISLAMABAD: The Federal Board of Revenue (FBR) has explained tax treatment of erstwhile FATA/PATA domiciled industries after amendment brought through Finance Act, 2021.

    The FBR in a circular No. 03 issued on Tuesday said a number of significant amendments have been introduced through Finance Act, 2021 in the Sales Tax Act, 1990 as applicable to various industries located in erstwhile FATA/PATA regions.

    The most important change brought about by the Finance Act 2021, is vis-A-vis the new entry No. 74 added in 8th Schedule to the Sales Tax Act, 1990, to charge sales tax at the rate of 16 per cent on all “goods supplied from tax-exempt areas of erstwhile FATA/PATA to the taxable areas.”

    Accordingly, a FATA/PATA-domiciled person having status of “active taxpayer” in terms of Section 2(1) of the Sales Tax Act, 1990 would continue to import raw materials for consumption at his own manufacturing site against deposit of post-dated cheques (PDC) in line with its determined installed production capacity.

    The importation, transportation, exemption (from import-stage income tax), and consumption of raw materials have been elaborately dealt with vide FBR‘s CGO # 1 of 2021, Circular # 5 of 2021, Circular # 9 of 2021 and Circular No.13 of 2021, which continue to be applicable.

    In order to facilitate the operationalization of benefits laid down in the law, the FATA/PATA-domiciled industrial units may acquire installed capacity determination certificate (ICDC) from the Khyber Pakhtunkhwa Department of Industries or the Ministry of Industries, Government of Pakistan.

    The Commissioner concerned shall accept the ICDC presented until he has reasons to believe that the actual capacity installed is less than the capacity determined and certified.

    “It goes without saying that only the goods meant for value addition are to be imported and not finished products,” the FBR said.

    In order to undertake foolproof surveillance of exit points from non-taxable to taxable territories, Inland Revenue Enforcement Network (IREN) check posts under Section 40D of the Sales Tax Act, 1990 are being established and functionalized to ensure that due tax is paid at the rate of 16 per cent on goods supplied into taxable territories.

    The Regional Tax Office (RTO), Peshawar shall also establish a tax office in Malakand Division for prompt release of consignments, processing of consumption and exemption certificates and effective and timely implementation of law in letter and spirit.

    FBR issues procedure for availing exemption certificate by erstwhile FATA/PATA residents
  • Rupee makes gain against dollar in interbank

    Rupee makes gain against dollar in interbank

    KARACHI: The Pak Rupee (PKR) gained 14 paisas against the dollar on Tuesday. The inflows of workers’ remittances helped the rupee to make gain.

    The rupee closed at Rs163.76 to the dollar in the interbank foreign exchange market. The local unit ended at Rs163.90 to the dollar a day earlier.

    Currency experts said that the inflows of remittances helped the local currency to appreciate.

    The inflows of workers’ remittances were at $2.71 billion in July 2021. The SBP issued details of remittances today.

    According to the State Bank of Pakistan (SBP) the remittances were remained above $2.0 billion for the 14th consecutive month.

    The experts said that the rupee likely to make further gain in coming days. The said that the country is expecting inflows of $2.8 billion from IMF by month end.

  • Withholding tax rates on property income for 2021-2022

    Withholding tax rates on property income for 2021-2022

    The Federal Board of Revenue (FBR) has issued updated rates of withholding tax on income from the property for the year 2021-2022.

    The withholding tax shall be collected by every prescribed person from the recipients of rent of the immovable property.

    The FBR collects withholding tax on income from property under Section 155 of the Income Tax Ordinance, 2001.

    WITHHOLDING TAX CARD 2021/2022

    Following are the rates of withholding tax:

    Any payment made on account of rent of the immovable property

    (A) In case of individual or Association of Person (AOP):

    1. Where the gross amount of rent does not exceed Rs, 300,000: There shall be no tax.

    2. Where the gross amount of rent exceeds Rs, 300,000 but does not exceed Rs, 600,000: the tax rate shall be 5 per cent of the gross amount exceeding Rs, 300,000.

    3. Where the gross amount of rent exceeds Rs. 600,000 but does not exceed Rs. 2,000,000: The tax rate shall be Rs. 15,000 plus 10 per cent of the gross amount exceeding Rs. 600, 000.

    4. Where the gross amount of rent exceeds Rs. 2,000,000: the tax rate shall be Rs. 155,000 plus 25 per cent of the gross amount exceeding Rs. 2,000, 000.

    B) in case of the company: the tax rate shall be 15 per cent.

    The tax deducted under Section 155 of Income Tax Ordinance, 2001 is adjustable.

    Withholding tax rates on dividend payment for 2021-2022