Author: Mrs. Anjum Shahnawaz

  • PSX declares around 200 percent growth in after tax profit for nine-month period

    PSX declares around 200 percent growth in after tax profit for nine-month period

    KARACHI: Pakistan Stock Exchange (PSX) on Monday announced a massive growth of around 200 percent in after tax profit for nine-month period ended March 31, 2021 owing to significant increase in listing fee and income from exchange operations.

    The stock exchange declared Rs542 million as profit after tax during first nine months of the current fiscal year as compared with Rs181 million in the corresponding period of the last fiscal year.

    The PSX declared Re0.68 as basic and diluted earnings per share during July – March 2020/2021 as compared with Rs0.23 in the same period of the last fiscal year.

    According to the results the PSX revenue from exchange operations posted 81 percent increase to Rs531 million during first nine months of the current fiscal year as compared with Rs294 million in the corresponding months of the last fiscal year.

    Similarly, the revenue from listing fee also posted 36 percent increase to Rs410 million during first nine months of the current fiscal year as compared with Rs302 million in the same period of the last fiscal year.

    However, mark-up/interest income of the stock exchange reduced to Rs58 million during the period under review as compared with Rs113.52 million in the corresponding period of the last fiscal year.

    Administrative expensive of the stock exchange increased to Rs908 million during nine-month period ended March 31, 2021 as compared with Rs846 million in the corresponding period of the last fiscal year.

    The income on share of profit from associated also increased to Rs427 million during July – March 2020/2021 as compared with Rs284 million in the same period of the last fiscal year.

  • Tax collection on profit from bank deposits increase to Rs54.55bn in July – March

    Tax collection on profit from bank deposits increase to Rs54.55bn in July – March

    KARACHI: Withholding income tax collection from profit on bank deposits registered 11 percent growth to Rs54.55 billion during first nine months (July – March) 2020/2021, sources said on Monday.

    The collection of withholding tax from profit on bank deposits was Rs49 billion in the nine months of the last fiscal year, officials at Regional Tax Office (RTO) –I Karachi said.

    The RTO-I Karachi, is a revenue collection arm of the Federal Board of Revenue (FBR), has mandate to collect the withholding tax on profit from debt on bank deposits under Section 151 of the Income Tax Ordinance, 2001.

    The rate of tax to be deduction under section is 15 percent of the yield or profit. In case person is not on the Active Taxpayers List (ATL) the tax rate shall be increased by 100 percent.

    The officials attributed the rise in tax collection to massive increase in bank deposits.

    The bank deposits have reached to record high at Rs17.9 trillion by end of March 2021. The deposits of banking system increased by 18.38 percent as the total deposits were at Rs15.12 trillion by end March 2020.

  • Jurisdiction of big taxpayers given to CTO

    Jurisdiction of big taxpayers given to CTO

    KARACHI: Federal Board of Revenue (FBR) has transferred jurisdiction of big volume taxpayers to Corporate Tax Office (CTO) instead of dedicated tax offices for big taxpayers i.e. Large Taxpayers Office (LTO).

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2021/2022 pointed out that the FBR had created new LTOs which deal with taxpayers having a turnover of Rs.1 billion or more.

    However, FBR has changed the taxpayer’s jurisdictions abruptly without any intimation.

    Jurisdiction of some tax payers has been transferred from LTO to CTO despite having a turnover of Rs.7 to Rs8 billion which has created a great deal of confusion and hardship. Difficulties in transfer of soft data/hard copies of tax records from one jurisdiction to other has created problem in processing of refunds and other issues.

    The chamber urged the FBR to correctly and transparently implement the said policy.

    Transfer of Jurisdiction should be streamlined and made easier with prior intimation and valid reasoning.

    Taxpayer data will be available for longer period to be checked by himself at one place and it will also facilitate taxpayers.

  • PTA warns against fake calls for money transfer

    PTA warns against fake calls for money transfer

    ISLAMABAD: Pakistan Telecommunication Authority (PTA) on Sunday warned general public for not sharing their personal details on hoax or fake calls because response to those calls may result in loss of money.

    In a press release, the PTA cautioned the public to be aware of hoax, falsified and unsolicited calls and messages asking for personal details or money transfer.

    PTA or other organizations such as banks will never call and ask for personal information, like ATM pin, code, OTP and account details.

    People are advised to do not share their personal information with an unknown caller/SMS sender and ignore calls claiming to be from PTA or other organizations asking to update or verify details i.e mother name, account balance, CNIC No etc.

    Besides contacting their respective telecom service operator, consumers may also register their complaints by dialing 0800-55055 or at https://complaint.pta.gov.pk/RegisterComplaint.aspx . Appropriate action would be taken against the persons involved in this fraudulent activity.

  • Commissioner Appeals should be empowered to grant stay up to 90 days

    Commissioner Appeals should be empowered to grant stay up to 90 days

    KARACHI: Federal Board of Revenue (FBR) has been urged to authorized commissioner appeals to grant stay up to 90 days instead existing 15 days.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2021/2022 said that currently Commissioner (Appeals) grants stay for 15 days only and after expiry of the stay the taxpayer has to file repeated extensions until the decision of the Appeals. Relevant Sections are: ITO 2001 Section 128 (1A)

    The chamber said that this is a cumbersome process which is quite unnecessary and causes undue hardship.

    The KCCI proposed that amendment should be made to Section 128 (1A) of the ITO 2001, to increase the stay duration to Ninety (90) days instead of 15, and extend order timeline to 180 days instead of the existing 30 days.

    This will eliminate unnecessary documentation and save time of both the taxpayer and the Commissioner (Appeals).

  • Major reforms in personal income tax likely in budget

    Major reforms in personal income tax likely in budget

    ISLAMABAD: The tax authorities are working on major reforms in personal income tax to be introduced through budget 2021/2022.

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  • FBR issues alert against fake, harmful emails

    FBR issues alert against fake, harmful emails

    The Federal Board of Revenue (FBR) has issued a cautionary alert to the general public, urging them to be vigilant against harmful and fake emails circulating under the guise of official communications.

    (more…)
  • KCCI demands restoration of normal business timings

    KCCI demands restoration of normal business timings

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday demanded the government of Sindh to restore business timings for markets during the holy month of Ramazan ul Mubarak as restriction imposed on timings may result in disastrous for traders and shopkeepers.

    Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce and Industry (KCCI) Shariq Vohra, while expressing sheer dismay over Sindh Govt’s decision to allow limited business timings from Sheri to 6:00PM and complete closure of businesses on Saturdays and Sundays, urged to revoke the relevant notification without further loss of time and allow all types of businesses to operate at full capacity throughout Ramazan otherwise the people, instead of dying due to diseases caused by coronavirus, would die themselves because of poverty, unemployment, mental stress, hunger or starvation.

    In a statement issued, Chairman BMG and President KCCI stated that they have been urging the Sindh Government through letters to avoid imposing such unpopular decisions at a very crucial time as this was the peak season and if businesses are disallowed to carry out activities for two consecutive days and compelled to observe limited business timings during the remaining working days, it will prove to be disastrous for them throughout next year.

    “We have sent letters to Chief Minister Sindh, Local Govt. Minister, Chief Secretary and Commissioner Karachi and also dropped messages from time to time but haven’t received any response which is a bit disappointing as we were not expecting this kind of response from Sindh Govt. which has always responded to KCCI’s pleas”, said Zubair Motiwala Chairman BMG, “Closure of businesses for two consecutive days and allowing them to operate with limited timings during the remaining days would result in bankrupting many businesses, trigger massive unemployment and chaos.”

    Referring to large number of complaints being received from the shopkeepers of almost all the commercial markets of Karachi who were constantly seeking KCCI’s assistance, Chairman BMG stressed that the government has to come up with some other feasible solution which could save everyone from the pandemic and also ensure zero damage to the poor shopkeepers and small traders who cannot afford any further shocks. “In this regard, the business and industrial community is ready to fully comply with all the SOPs but closure would bring much more difficulties and miseries than opening and controlling the pandemic through the implementation of SOPs”, he added.

    He further said, “These are challenging times and every member of the civil society is facing problems due to COVID crises. Perhaps, it is time when the government should think about extending monetary help to citizens especially the small shopkeepers who are now in net debt position and even paying rents to owners of their business premises has really become difficult.”

    “It is the finding of our Research Department that many shopkeepers have already gone bankrupt and they are running their businesses in anticipation that this season of Ramazan will pull them out of crises. Hence, it is imperative that government should understand the real situation faced by the trading community”, he added.

    “Yes! it is necessary to implement but these SOPs, as the trading argues, are not seen on roads, mosques, public places and big shopping malls. In such a situation, how Karachiites will be saved from COVID if they are closed for two days”, Zubair Motiwala questioned.

    Chairman BMG, therefore, stressed that the notification must be immediately withdrawn while the administration should be effectively utilized for strict implementation of the Standard Operating Procedures (SOPs). “If the administration was able to strictly get the lockdown enforced last year, then why it is not being used for strict implementation of SOPs”, he asked, adding that the Sindh government will have to alleviate the predicament of businessmen instead of aggravating them.

    President KCCI Shariq Vohra also cautioned that shutting down shops for two days and limited business hours would lead to creating a chaotic situation as the people would find no other option but to come out on streets to protest due to rising unemployment and poverty.

    Keeping in view the overall situation and grievances suffered by the business and industrial community, President KCCI hoped that the Sindh government would look into this serious issue and take steps to save businesses and the economy from further disaster.

    On behalf of the entire business community of Karachi particularly the small traders and shopkeepers, Chairman BMG and President KCCI appealed the government to review the decision to shut down all types of commercial/ business activities for two consecutive days a week and allowing limited business hours till 6:00PM which is tantamount to mass killing of the already perturbed small traders and shopkeepers who are in deep crises and struggling really hard to somehow keep their businesses alive.

  • Sharp growth recorded in import of CBU, CKD motor cars

    Sharp growth recorded in import of CBU, CKD motor cars

    ISLAMABAD: A sharp growth has been witnessed in import of motor cars in the categories of Completely Build Unit (CBU) and Completely Knocked Down (CKD) during first nine months (July – March) of 2020/2021.

    The import of motor cars in both the categories recorded over 100 percent growth.

    According to data released by Pakistan Bureau of Statistics (PBS) the import of CBU motor cars increased by 149 percent to $161.21 million during first nine months of the current fiscal year as compared with $64.8 million in the corresponding period of the last fiscal year.

    Similarly, the import of CKD cars increased by 113 percent to $733 million during July – March 2020/2021 as compared with $343.4 million in the same period of the last fiscal year.

    Analysts said that import of CBU cars increased due to ease in air travel restrictions after reduction in coronavirus cases globally.

    Besides, the import of CKD cars can be attributed to acceleration in domestic industrial activities after lifting of lockdown that was imposed to prevent spread of coronavirus cases.

  • Country spends Rs248bn on mobile phones import

    Country spends Rs248bn on mobile phones import

    ISLAMABAD: Pakistan has imported mobile phones worth Rs248 billion during first nine months (July – March) of 2020/2021 owing to rise in demand of devices for digital financial system.

    According to data released by Pakistan Bureau of Statistics (PBS) on Saturday, the country imported mobile phones worth 248 billion during July – March 2020/2021 as compared with 153 billion in the corresponding period of the last fiscal year, showing an increase of 62 percent.

    The strong value of the dollar during the period forced higher import payment in terms of the Pak Rupee. The import of mobile phones in terms of US dollar increased by 56.74 percent to $1.53 billion during July – March 2020/2021 as compared with $980 million in the corresponding period of the last fiscal year.

    Market sources said that coronavirus pandemic had limited the physical movement, which had given rise to online transactions. Mobile phones have played a major role in promoting the digital economy.

    Further, the implementation of laws making it mandatory that only verified mobiles through the Pakistan Telecommunication Authority (PTA) to be activated for local services has also discouraged informal channels for the import of mobile phones.

    They said that the depreciation of the Pak Rupee had also an impact on the surge of mobile phone imports.