Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SBP approves PIA Sukuk for SLR maintenance

    SBP approves PIA Sukuk for SLR maintenance

    KARACHI: The State Bank of Pakistan (SBP) on Monday approved Sukuk to be issued by Pakistan International Airlines Company Limited (PIACL) for the requirement of Statutory Liquidity Requirement (SLR).

    The SBP said that in terms of Government of Pakistan, Ministry of Finance notification S.R.O. 746(I)/2021 dated May 31, 2021, the privately placed Sukuk to be issued by Pakistan International Airlines Company Limited (PIACL) under the title of “PIA-Sukuk-I” shall be approved security for the maintenance of SLR under sub-section 1 of section 29 of the Banking Companies Ordinance, 1962.

    Further, SLR eligibility limit (i.e. 7 percent) on Public Sector Sukuk shall be applicable on PIA Sukuk-I in accordance with the provisions of the Circular referred above.

     The ministry of finance issued SRO 746 (I)/2021 dated May 31, 2021 to announce that privately placed Sukuk to be issued by PIACL up to Rs20 billion shall be guaranteed by the government of Pakistan and shall be approved security for the maintenance of liquid assets.

  • Tax treatment of disposal of stock in trade

    Tax treatment of disposal of stock in trade

    Section 35 of Income Tax Ordinance, 2001 has explained tax treatment on disposal of stock in trade. The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021.

    (more…)
  • Rupee falls to 163.05 against dollar in interbank

    Rupee falls to 163.05 against dollar in interbank

    KARACHI: The Pak Rupee sharply fell to Rs163.05 against the dollar during midday trade in interbank foreign exchange market on Monday.

    The rupee fell by 62 paisas against the dollar in intraday trade.

    The import payment demand deteriorated the rupee value.

    Currency experts said that higher dollar demand was as the market opened after two weekly holidays on Monday.

    Further, the Sindh government announced amendments to strict lockdown. This also encouraged the importers to place fresh orders to their foreign suppliers.

  • Headline inflation increases by 8.4% in July

    Headline inflation increases by 8.4% in July

    In July 2021, Pakistan experienced a notable shift in inflationary trends, with the headline inflation based on the Consumer Price Index (CPI) registering at 8.4 percent year-on-year, down from 9.7 percent in June 2021.

    (more…)
  • ABAD seeks amnesty scheme extension for six months

    ABAD seeks amnesty scheme extension for six months

    KARACHI: Association of Builders and Developers (ABAD) has urged the government to extend the amnesty scheme for six months to document another Rs1 trillion.

    Fayyaz Ilyas, Chairman, ABAD, in a statement said that the investment in Construction Industry will double to Rs2 trillion if special construction package is extended at least for six months.

    Quoting the statement of Information Minister for State Farrukh Habib that an amount Rs1 trillion had been invested in construction industry after announcement of Amnesty Scheme, chairman ABAD said that a number of projects could not be registered under the scheme announced by the Prime Minister due to hurdles in approval, especially in Sindh.

    “If these projects could get chance to register under this scheme, the investment will double from Rs1 trillion to Rs2 trillion,” he said.

    Fayyaz Ilyas said that Prime Minister Imran Khan had extended date of Amnesty Scheme upto June 30, 2021. However, due to fourth wave of Covid-19 and hurdles in approval of projects, date of Amnesty scheme may be extended up to December 31, 2021 to fetch more investment in construction and real estate business.

    He said that despite second and third wave of Corona construction activities, especially production of steel, cement and other construction materials is on the rise due to Amnesty Scheme.

    Many of allied industries are planning expansion to meet rising demands and some of them have imported billions of rupees machineries to expand their industries, which shows that if the amnesty scheme is extended, the economy of Pakistan will become a vibrant and the dream of making Pakistan Asian Tiger could be realized, he hoped.

  • Method of accounting under income tax ordinance

    Method of accounting under income tax ordinance

    KARACHI: The intricacies of accounting methods for income tax purposes are elucidated in Sections 32, 33, and 34 of the Income Tax Ordinance, 2001, as outlined by the Federal Board of Revenue (FBR).

    (more…)
  • Tax expenditures against transfer of participatory reserve

    Tax expenditures against transfer of participatory reserve

    Section 31 of Income Tax Ordinance, 2001 has allowed transfer of participatory reserve on certain circumstances.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    31. Transfer to participatory reserve.—(1) Subject to this section, a company shall be allowed a deduction for a tax year for any amount transferred by the company in the year to a participatory reserve created under section 66 of the Companies Act, 2017 (XIX of 2017) in accordance with an agreement relating to participatory redeemable capital entered into between the company and a banking company as defined in the Financial Institutions(Recovery of Finances) Ordinance,2001 (XLVI of 2001).

    (2) The deduction allowed under subsection (1) for a tax year shall be limited to five per cent of the value of the company’s participatory redeemable capital.

    (3) No deduction shall be allowed under subsection (1) if the amount of the tax exempted accumulation in the participatory reserve exceeds ten per cent of the amount of the participatory redeemable capital.

    (4) Where any amount accumulated in the participatory reserve of a company has been allowed as a deduction under this section is applied by the company towards any purpose other than payment of share of profit on the participatory redeemable capital or towards any purpose not allowable for deduction or exemption under this Ordinance the amount so applied shall be included in the income from business of the company in the tax year in which it is so applied.

    (Disclaimer: The text of 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.)

  • Pak Rupee to Euro on August 1, 2021

    Pak Rupee to Euro on August 1, 2021

    KARACHI: Following are the rates of buying and selling of one Euro (EUR) in Pakistani Rupee (PKR) in the open market on August 1, 2021:

    Buying: Rs 187.50 to the Euro

    Selling: Rs 189.50 to the Euro

    We update rates hourly so we can offer you the best EUR to PKR.

    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.

  • Expenditures on non-performing debts under tax law

    Expenditures on non-performing debts under tax law

    In a significant development for banking companies, development finance institutions, and Non-Banking Finance Companies (NBFCs), Section 30 of the Income Tax Ordinance, 2001 now allows for the deduction of profits accrued on non-performing debts under certain conditions.

    (more…)
  • Expenditures against bad debt allowed

    Expenditures against bad debt allowed

    The Federal Board of Revenue (FBR) has allowed expenditures against bad debt with certain conditions under Section 29 of Income Tax Ordinance, 2001.

    (more…)