The index closed at 45,045 points as against last Friday’s closing of 44,872 points.
Analysts at Arif Habib Limited said that increased foreign outflow (due to reclassification of Pakistan from MSCI EM to MSCI Frontier market) in recent sessions has put an added pressure on the Index and today was no different.
Outflows from E&P, Banks and Fertilizer sector kept the local investors poised for further downside in these sectors and reflection of that was witnessed in PPL, POL, HBL, SYS, EFERT.
Uptick in NETSOL, TRG and AVN just prior to commencement of trading in Octopus digital, helped the index turn green, which was otherwise down by 310 points during the session.
The lost points saw recovery by the close of session and added a net gain of 153 points (unadjusted). Among scrips, TELE topped the volumes with 25.6 million shares, followed by WTL (21.6 million) and SMBL (14.7 million).
Sectors contributing to the performance include Technology (+70 points), Pharma (+48 points), Food (+21 points), Chemical (+18 points) and Inv Banks (+13 points).
Volumes remained the same at 267.2 million shares (+0.1 per cent DoD). Average traded value also increased by 12 per cent to reach US$ 59.1 million as against US$ 52.8 million.
Stocks that contributed significantly to the volumes include TELE, WTL, SMBL, BYCO and GGL, which formed 33 per cent of total volumes.
Stocks that contributed positively to the index include TRG (+49 points), SEARL (+39 points), COLG (+17 points), AVN (+17 points) and ENGRO (+16 points). Stocks that contributed negatively include PPL (-23 points), LUCK (-21 points), POL (-12 points), FFC (-11 points) and CHCC (-8 points).
Section 224 of Income Tax Ordinance, 2001 explicitly declares that any proceedings before the Commissioner, Commissioner (Appeals), or Appellate Tribunal are to be treated as judicial proceedings.
Section 223 of Income Tax Ordinance, 2001 allowed a taxpayer to nominate a representative for an appearance on his/her behalf before the tax authorities.
223. Appearance by authorised representative. — (1) Any taxpayer who is entitled or required to attend before the Commissioner, the Commissioner (Appeals) or the Appellate Tribunal in connection with any proceeding under this Ordinance may, except when required under section 176 to attend personally, attend by an authorised representative.
(2) For the purposes of this section and subject to sub-section (3), an authorised representative of a taxpayer shall be a person who is a representative of the person under section 172 and any of the following persons, namely:–
(a) A relative of the taxpayer;
(b) a current full-time employee of the taxpayer;
(c) any officer of a scheduled bank with which the taxpayer maintains a current account or has other regular dealings;
(d) any legal practitioner entitled to practice in any Civil Court in Pakistan;
(e) any accountant; or
(f) any income tax practitioner.
(3) For the purposes of this section —
(a) no person who has been dismissed or removed from service in the Income Tax Department shall be entitled to represent a taxpayer under sub-section (1);
(b) no person having resigned from service after having been employed in the Income Tax Department for not less than two years shall be entitled to represent a taxpayer under sub-section (1) for a period of two years from the date of resignation;
(c) no person having retired from service in the Income Tax Department shall be entitled to represent a taxpayer under sub-
section (1) for a period of one year from the date of retirement in any case in which the person had made or approved, as the case may be, any order of assessment, refund or appeal within one year before the date of retirement; or
(d) no person who has become insolvent shall be entitled to represent a taxpayer under sub-section (1) for so long as the insolvency continues;
(e) no person who has been convicted of an offence in relation to any income tax proceedings under this Ordinance shall be entitled to represent a taxpayer under sub-section (1) for such period as the Commissioner may, by order in writing, determine.
(4) Where any legal practitioner or accountant is found guilty of misconduct in a professional capacity by any authority entitled to take disciplinary action against the legal practitioner or accountant, an order passed by that authority shall have effect in relation to any right to represent a taxpayer under sub-section (1) as it has in relation to the person’s right to practice as a legal practitioner or accountant.
(5) Where any person (other than a person to whom sub-section (4) applies) is found guilty of misconduct in relation to any income tax proceeding, the Commissioner may, by an order in writing, direct that the person cease to represent a taxpayer under sub-section (1) before the Commissioner, Commissioner (Appeals) or Appellate Tribunal.
(6) The Commissioner shall not make an order under clause (e) of sub-section (3) or sub-section (5) in respect of any person, unless the Commissioner has given the person a reasonable opportunity to be heard.
(7) Any person against whom an order under clause (e) of sub-section (3) or sub-section (5) has been made may, within thirty days of service of notice of the order, appeal to the Board to have the order cancelled.
(8) The Board may admit an appeal after the expiration of the period specified in sub-section (7) if satisfied that the appellant was prevented by sufficient cause from lodging the appeal within the period.
(9) No order made under clause (e) of sub-section (3) or sub-section (5) shall take effect until thirty days after notice of the order is served on the person or, where an appeal has been lodged under sub-section (7), until the disposal of the appeal.
(10) The Board may make rules under section 237 for the registration of income tax practitioners and related matters, including establishing a code of conduct for such practitioners.
(11) In this section –
“accountant” means –
(a) a chartered accountant within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961);
(b) a cost and management accountant within the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966); or
(c) a member of any association of accountants recognised for the purposes of this section by the Board; and
“income tax practitioner” means a person who is registered as such by the Board, being a person who possesses such qualifications as may be prescribed for the purposes of this section or who has retired after putting in satisfactory service in the Income Tax Department for a period of not less than ten years in a post or posts not below that of Income Tax Officer.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
222. Appointment of expert. — The Commissioner may appoint any expert as the Commissioner considers necessary for the purposes of this Ordinance, including for the purposes of audit or valuation.
222A. Fee and service charges.- (1) The Board with the approval of Federal Minister-in-charge may, be notification in the official Gazette, and subject to such conditions, limitations or restrictions as it may deem fit to impose, levy fee and services charges for valuation or in respect of any other service or control mechanism provided by any formation under the control of the Board, including ventures of public-private partnership at such rates as may be specified in the notification.
(2) The Board may authorize and prescribe the manner in which fee and service charges collected including by ventures of public-private partnership under this section are expended.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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.
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).
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.
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).
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.
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.
