Author: Mrs. Anjum Shahnawaz

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.

CURRENCY	BUYING	SELLING
AED	42.8877	42.9827
AUD	119.5115	119.7741
CAD	127.8828	128.1619
CHF	171.5429	171.9229
CNY	24.4065	24.4570
EUR	188.0030	188.4276
GBP	219.2052	219.6892
JPY	1.4205	1.4238
SAR	41.9788	42.0710
USD	157.3937	157.7570

June 25, 2021

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.

June 24, 2021
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.

June 24, 2021
Investors allowed carry forward capital losses on disposal of securities

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday allowed investors of Pakistan Stock Exchange (PSX) to carry forward capital losses for calculation of capital gain tax.

In this regard the FBR issued SRO 801(I)/2021 to make amendment in the Income Tax Rules, 2002.

The FBR previously issued draft rules through SRO 639(I)/2021 dated June 01, 2021 for seeking feedback from stakeholders.

As per the SRO a substitution in sub-rule (3) of Rule 13D of the Income Tax Rules, 2002 has been made. According to the amendment:

(3) Capital loss arising on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of listed securities chargeable to tax during the tax year shall be carried forward to the following tax year and set off only against the gain of the person from disposal of listed securities chargeable to tax but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first determined.

In Rule 13N, the substitution in sub-rule (7), as:

(7) Capital loss arising on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of listed securities chargeable to tax during the tax year shall be carried forward to the following tax year and set off only against the gain of the person from disposal of listed securities chargeable to tax but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first determined.

A new sub-rule after the sub-rule 7 has been inserted, which is:

(7A) Capital loss arising on disposal of listed securities in tax year 2019 and onward shall be carried forward to a subsequent tax year for setting off, in the manner prescribed as follow:

(a) The setting off of eligible capital loss carried forward from previous tax year(s) shall be made by National Clearing Company of Pakistan Limited (NCCPL) under this rule, only in respect of a taxpayer whose name appear or appeared in the Active Taxpayers List (ATL) pertaining to the tax year to which such loss pertains as witnessed by the ATL available on FBR’s website after updation for the tax year to which such loss pertains;

(b) adjustment of carried forward capital loss(es) shall be made on monthly basis by the NCCPL from the first month of updation of ATL for the tax year and on first-in first-out (FIFO) basis;

(c) The NCCPL may requisition date wise position of ATL in respect of particular taxpayer from Information Technology (IT) Wing of the FBR as and when required;

(d) At the end of relevant tax year, NCCPL shall maintain tax year-wise balance of unexpired carried forward capital losses separately identifiable for computation of limitation period for each ta year; and

(e) The manner of adjustment of capital loss carried forward from previous tax years will be in accordance with illustration given in clause (zf) of Rule 13P.

June 24, 2021
Gas supply suspension: NKATI appeals PM to save industry

KARACHI: Faisal Moiz Khan, the President of the North Karachi Association of Trade & Industry (NKATI), has issued a fervent appeal to Prime Minister Imran Khan to intervene and rescue Karachi’s industries from the brink of disaster.
(more…)

June 24, 2021
FBR manipulates budget 2021/2022, proposals not to provide relief to business community: FPCCI

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has alleged Federal Board of Revenue (FBR) for proposing and manipulating the budget 2021/2022, as the proposals will neither provide relief to business community nor it will help in economic growth.
(more…)

June 24, 2021
KSE-100 index gains 62 points in narrow range trading

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a modest upswing on Thursday, with the benchmark KSE-100 index gaining 62 points in a day marked by narrow range trading.
(more…)

June 24, 2021
KIBOR Rates on June 24, 2021

Karachi – The State Bank of Pakistan (SBP) has unveiled the latest Karachi Interbank Offered Rates (KIBOR) for various tenors on Thursday, shedding light on the prevailing interest rates in the interbank market.
(more…)

June 24, 2021
Mari Petroleum board decides consortium to set up NewCo in Abu Dhabi

KARACHI: The board of directors of Mari Petroleum Company (MPCL) on Thursday decided that a consortium of public limited energy giants shall incorporate a company namely NewCo in Abu Dhabi Global Market or Pakistan.

The company in a notice sent to the Pakistan Stock Exchange (PSX) said that the Board of Directors of MPCL, in its meeting held today i.e. June 24, 2021 has decided that subject to shareholders’ approval, a consortium comprising Mari Petroleum Company Limited (“MPCL”), Pakistan Petroleum Limited, Oil and Gas Development Company Limited, and Government Holding (Private) Limited (collectively referred to as the “Consortium”), shall incorporate a company/special purpose vehicle (a “NewCo”), in Abu Dhabi Global Market or Pakistan, with each Consortium partner having 25% shareholding in the NewCo.

The Consortium has submitted a bid for one of the blocks offered in the Abu Dhabi Bid Round 2019 and incorporation of the NewCo is one of the conditions precedent to qualify for the award: It is hereby clarified that the award shall be granted by the Supreme Council for Finance and Economic Affairs (SCFEA) of the Emirate of Abu Dhabi, and that no decision in this regard has so far been made. In case the block is not awarded to the Consortium, the NewCo shall be dissolved.

Further, subject to the approval of respective shareholders and the Consortium being declared a successful bidder by SCFEA, the incorporation of the NewCo and execution of all definitive agreements, an amount of up to USD 100 million will be invested by MPCL over a period of five years (total investment by all Consortium partners: Up to USD 400 million). Any subsequent funding, if required, will be subject to seeking shareholders’ and relevant approvals.

In addition, subject to approval of their respective shareholders, MPCL (and other members of the Consortium) are required to provide a parent company guarantee for all obligations of the NewCo under the definitive agreements to Abu Dhabi National Oil Company and SCFEA.

June 24, 2021
Rupee makes gain 85 paisas against dollar

KARACHI: The Pak Rupee made a gain of 85 paisas against the dollar on Thursday owing to sufficient supply of export receipts and workers’ remittances.

The rupee ended at Rs157.68 to the dollar from the previous day’s closing of Rs158.53 in the interbank foreign exchange market.

Currency experts said that the market had sufficient supply of the foreign currency that helped the rupee to make gain.

The rupee witnessed a continuous decline against the dollar during this week owing to demand for import and corporate payments.

June 24, 2021