Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • New tax slabs for property income proposed

    New tax slabs for property income proposed

    ISLAMABAD: The Finance Bill 2021 has proposed amendment to the withholding tax slab rates applicable in case of withholding agents other than company on account of payment of rent of immovable property under Section 155 of the Income Tax Ordinance, 2001.

    Following are the proposed rates are:

    Gross amount of rent:

    01. Where the gross amount of rent not exceeding Rs300,000: the tax rate shall be zero

    02. Where the gross amount of rent not exceeding Rs300,000 but does not exceed Rs600,000: 5 per cent of the gross amount exceeding Rs300,000

    03. Where the gross amount of rent not exceeding Rs600,000 but does not exceed Rs2,000,000: Rs15,000 + 10 per cent of the gross amount exceeding Rs600,000

    04. Where the gross amount of rent exceed Rs2,000,000: Rs155,000 + 25 per cent of the gross amount exceeding Rs2,000,000.

  • Stocks end down by 359 points amid selling pressure

    Stocks end down by 359 points amid selling pressure

    KARACHI: The stock market witnessed a decline of 359 points on Friday as across the board selling pressure observed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 47,604 points as against previous day’s close of 47,963 points, showing a decline of 359 points.

    Analysts at Arif Habib Limited said that the rollover week ended with market shedding 486 points during the session and closing the index -359 points.

    Overnight intimation from MSCI regarding possible downgrade of Pakistan from MSCI Emerging Market Index to MSCI Frontier market Index, had investors perplexed on the upgrade of stocks in the recent MSCI review particularly LUCK and TRG, which were added to the Standard and Small index respectively.

    In addition, Finance Minister’s final budget speech had positive surprise for auto stocks.

    Selling pressure was observed across the board, with concentration towards Banks, E&P and Cement sector stocks. Among scrips, WTL topped the volumes with 142 million shares, followed by BYCO (53.7 million) and PACE (44.9 million).

    Sectors contributing to the performance include Banks (-114 points), Cement (-101 points), E&P (-63 points), Pharma (-40 points) and Inv Banks (-28 points).

    Volumes increased from 638.8 million shares to 761.3 million shares (+19 per cent DoD). Average traded value also increased by 32 per cent to reach US$ 138.0 million as against US$ 103.8 million.

    Stocks that contributed significantly to the volumes include WTL, BYCO, PACE, TPL and KEL, which formed 39 per cent of total volumes.

    Stocks that contributed positively to the index include PSEL (+29 points), FCEPL (+14 points), SYS (+12 points), ANL (+7 points) and HUBC (+7 points). Stocks that contributed negatively include LUCK (-66 points), HBL (-50 points), UBL (-36 points), PPL (-20 points) and DAWH (-19 points).

  • KIBOR rates on June 25, 2021

    KIBOR rates on June 25, 2021

    KARACHI: State Bank of Pakistan (SBP) on Friday issued following Karachi Interbank Offered Rates (KIBOR) on June 25, 2021.

     TenorBIDOFFER
    1 – Week6.877.37
    2 – Week6.927.42
    1 – Month7.017.51
    3 – Month7.217.46
    6 – Month7.447.69
    9 – Month7.508.00
    1 – Year7.558.05
  • IR offices to remain open till midnight of June 30 for collection of duty, taxes

    IR offices to remain open till midnight of June 30 for collection of duty, taxes

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday said that the offices of Inland Revenue (IR) will observe extended working hours and remain open till mid-night on June 30, 2021 for collection of duty and taxes.

    In an official notification the FBR directed all tax offices to observe extended working hours till 12:00 midnight on Wednesday June 30, 2021 to facilitate the taxpayers in payment of duty and taxes.

    The FBR directed the chief commissioners of Inland Revenue to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of the National Bank of Pakistan (NBP) to ensure transfer of tax collection by these branches on June 30, 2021 to the respective branches of the SBP on the same date so as to account for the same towards the collection for the month of June 2021.

    In another notification, the SBP asked banks to observe extended hours for collection of duty and taxes.

    The SBP said that SBP-BSC offices and NBP branches would observe extended banking hours till 8:00 PM on June 30, 2021 for collection of government duties and taxes.

    The clearing instruments, collected by SBP-BSC offices and NBP branches till 8:00 PM for payment of government taxes shall be lodged in special clearing to be arranged through NIFT at 8:00PM on June 30, 2021.

    The SBP said that the NIFT shall arrange special clearing for same day clearing of payment instruments collected till 8:00PM on June 30, 2021. NIFT shall submit final returns to SBP-BSC offices for settlement by 10:00PM, same day.

    M/s. 1Link shall arrange to provide the batches of Alternate Deliver Channels (ADCs) transactions executed till 12:00 AM on June 30, 2021 by 9:00 AM on July 01, 2021 to SBP for settlement.

    In order to eliminate the issue of spillover receipts, the NBP shall ensure that no instrument concerning government receipts, lodged in aforesaid office hours, shall remain unattended at any NBP branch and shall be settled in the value date of June 30, 2021 through special clearing.

  • FATF retains Pakistan in grey list

    FATF retains Pakistan in grey list

    ISLAMABAD: The Finance Action Task Force (FATF) on Friday kept Pakistan in ‘grey list’ despite the country has made significant progress of addressing 26 action plan out of 27.

    FATF President Dr Marcus Pleyer in a press conference announced that Pakistan will continue to remain on the increased monitoring list, also known as the grey list.

    Admitting the performance of the country FATF President Dr Marcus Pleyer said: “Pakistan has made significant progress and it has largely addressed 26 out of 27 measures.”

    Pleyer, however, added that the action plan on financial terrorism still needed to be addressed.

    “In 2019, the regional partner of FATF identified problems in Pakistan’s anti-money laundering measures. But since then it has improved. There remains risk of money laundering and subsequently FATF had discussions with Pakistan.

    “I want to thank the Pakistan government for their continued commitment to address the concerns and make the necessary changes they were asked to effect,” Pleyer said.

    The FATF president said all action plan items needed to be addressed and goals fulfilled for countries to exit the grey list.

    “All countries are equal. This is also our expectation from the Pakistan government.”

    In its last presser following a plenary, on Feb 25, FATF President Dr Marcus Pleyer had said Pakistan remained under increased monitoring, adding, “while Islamabad has made significant progress, there remained some serious deficiencies in mechanisms to plug terrorism financing”.

    Pakistan has been on the FATF’s grey list for deficiencies in its counter-terror financing and anti-money laundering regimes since June 2018.

    Until the last assessment, Pakistan was found deficient in acting against organisations allegedly linked to the terror groups listed by the UN Security Council, prosecuting and convicting banned individuals and tackling smuggling of narcotics and precious stones.

  • FBR directs timely disposal of pension, retirement cases

    FBR directs timely disposal of pension, retirement cases

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday directed the field formation to ensure timely disposal of pension and retirement cases otherwise the officers concerned will be responsible for any lapse.

    An official notification issued by the FBR stated that it is observed with serious concern that field formations while forwarding / submitting retirement cases / pension papers for the approval / signatures of competent Authority don’t follow the procedures of the Government and FBR’s instructions issued on the subject from time to time.

    In some cases pension papers of officers / officials are received after their date of retirement. This at times causes embarrassment to the department.

    The Pension Rules for Civil Servants stipulate the procedure and stages for disposal of pension cases (refer to S.No. 53 & 54 “A manual of pension procedures”).

    As per the aforesaid rules, action on the pension papers of a civil servant should be initiated one year before a Government servant is due to retire, so that pension may be sanctioned a month before the date of his retirement.

    Similarly, the Establishment Division’s Instructions, (conveyed to all ministries / departments, vide letter No. 330/RP/2016- WO(P) dated 12.05.2017) also emphasise that “the retirement Notifications / office orders of the retiring officers/officials shall be issued at least one year before retirement on  attaining the age of superannuation”.

    All Additional Commissioners / Deputy Commissioners, Additional Directors / Deputy Directors (HQ) are personally liable for timely submission of pension cases as per procedure / instructions issued by the Government.

    In view of the above, the officers have been directed to ensure that cases of all officers / officials under your control retiring by 30.06.2022 are processed by 15.07.2021 positively. ADCIR / DC (HQs) shall personally be held responsible for any lapse in this regard.

  • Rupee strengthens by six paisas against dollar

    Rupee strengthens by six paisas against dollar

    KARACHI: The Pak Rupee made a gain of six paisas against the dollar on Friday owing to sufficient supply of the foreign currency during the day.

    The rupee ended at Rs157.62 to the dollar as compared with last day’s closing of Rs157.68 in the interbank foreign exchange market.

    Currency experts said that the rupee strengthened because a sufficient supply of the dollars in the shape of export receipts and workers’ remittances were seen during the day.

    They said that the demand for the foreign currency remained high during the day due to corporate and import payments.

  • SBP issues customers exchange rates on June 25, 2021

    SBP issues customers exchange rates on June 25, 2021

    KARACHI: The State Bank of Pakistan (SBP) on Friday issued the exchange rate of foreign currencies in the rupee in the open market.

    The SBP said the data is compiled and disseminated for information only.

    These Exchange Rates are an estimate of the Exchange Rates quoted by various Commercial Banks to their clients.

    They are compiled from the Exchange Rate sheets issued daily by various Commercial Banks providing their indicative Exchange Rates for commercial transactions with customers.

    CURRENCYBUYINGSELLING
    AED42.887742.9827
    AUD119.5115119.7741
    CAD127.8828128.1619
    CHF171.5429171.9229
    CNY24.406524.4570
    EUR188.0030188.4276
    GBP219.2052219.6892
    JPY1.42051.4238
    SAR41.978842.0710
    USD157.3937157.7570
  • Domestic electricity consumers to pay tax on monthly bill above Rs25,000

    Domestic electricity consumers to pay tax on monthly bill above Rs25,000

    ISLAMABAD: The tax authorities have imposed tax on domestic electricity consumers – whose monthly bill is Rs25,000 and above.

    According to a commentary on budget 2021/2022 by KPMG Taseer Hadi & Co. currently, tax collection on domestic consumers of electricity is prescribed under section 235A of Income Tax Ordinance, 2001 whereby 7.5 per cent advance tax is required to be collected if the monthly electricity bill is of Rs. 75,000 or more.

    Such advance tax is adjustable against tax liability of such person. Whereas, tax collection on commercial and industrial consumer of electricity is prescribed under section 235 of the Income Tax Ordinance, 2001.

    The Finance Bill 2021 proposed to withdraw section 235A and also proposes to insert requirement of tax collection on domestic consumers of electricity in section 235 based on following criteria:

    —if the consumer’s name is not appearing in Active Taxpayers List (ATL);

    —monthly bill is Rs. 25,000 or more;

    —tax rate will be 7.5 per cent;

    —tax collection on annual bill amount up to Rs360,000 will be minimum tax;

    —tax collection on monthly bill over and above Rs. 30,000 will be adjustable against tax liability of a person.

    The Bill further proposed to exclude those persons whose entire income is subject to final tax or minimum tax regime under any provisions of the Income Tax Ordinance, 2001 from the application of the above section.

  • PTA renews licenses of three cellular phone operators in AJK, Gilgit-Baltistan

    PTA renews licenses of three cellular phone operators in AJK, Gilgit-Baltistan

    ISLAMABAD: Pakistan Telecom Authority (PTA) has renewed licenses of three leading cellular mobile operators for Azad Jammu and Kashmir and Gilgit Baltistan.

    The ceremony for renewal of licenses was held in PTA headquarters, Islamabad on Thursday.

    Three Cellular Mobile Operators i.e. Telenor Pakistan, PMCL (Jazz) and PTML (Ufone) have deposited payment (50 per cent of the PTA determined license fee) amounting to Rs3.19 Billion against their license renewal fee with PTA.

    The event was attended by Federal Secretary for IT & Telecommunication, Dr. Muhammad Sohail Rajput, Chairman PTA, Major General Amir Azim Bajwa (R); Member Finance PTA, Muhammad Naveed and Member Compliance & Enforcement PTA, Dr. Khawar Siddique Khokhar; Executive Director, Frequency Allocation Board (FAB); Joint Secretary Gilgit Baltistan Council; Deputy Secretary (Finance) and Deputy Secretary (Welfare & Development) AJ&K Council and senior officers of PTA. CEOs of Telenor, Jazz and Ufone along with senior representatives of CMOs also attended the event.

    On the occasion, Chairman PTA lauded the efforts of the cellular operators for playing a crucial role in providing connectivity across these regions.

    He also appreciated the tireless efforts of concerned officials of PTA, FAB and MoIT for timely conclusion of the renewal process. He further stated that AJ&K and GB are the prime areas of tourism in Pakistan and the license renewal will pave the way for provision of 3G/4G and Next Generation Mobile Services to the consumers of these areas as well to the tourists.

    Continuous efforts are being made to bring state of the art telecommunication services to far flung areas enabling access to a multitude of opportunities for businesses, education and health.

    On this occasion Secretary IT & T, Dr. Muhammad Sohail Rajput congratulated the mobile operators on renewal of licenses. He said that AJ&K and GB have immense importance in government policies, and it is the government’s priority to provide advanced telecom services in these regions. He said that there are vast opportunities for public-private collaboration in various sectors including telecoms.

    It is pertinent to mention that due to license renewals, this will not only contribute towards uninterrupted provision of better telecom services to the people of AJ&K and GB but will also help in promotion of competition and investment in the telecom sector.