Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Weekly Review: bourse to recover on ease in political uncertainty

    Weekly Review: bourse to recover on ease in political uncertainty

    KARACHI: The stock market is likely to regain due to boost in investor confidence after a major political sigh of relief for the ruling government.

    Analysts at Arif Habib Limited said that with the government’s candidate successfully retaining his position as Chairman Senate, we view this as a major political sigh of relief for the ruling government.

    “We expect this to stimulate renewed confidence and stability in the political climate, which should help recover sentiment in the local bourse,” they said.

    We do highlight that rising COVID cases, and rising oil prices are factors that could keep market performance in check.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.7x (2021) compared to Asia Pac regional average of 17.4x and while offering DY of ~7.1 percent versus ~4.5 percent offered by the region.

    Despite PM Imran Khan successfully winning a vote of confidence in the National Assembly, the domestic bourse witnessed a severe hammering throughout the week against expectations.

    Concerns persisted with regards to uncertainty over the senate chairman election.

    The opposition’s plans regarding “Long March” towards the end of March contributed further to the prevailing political noise.

    Furthermore, Election Commission of Pakistan rejected a plea of the Government to stop the issuance of the notification for the opposition candidate’s victory in the senate elections.

    Once again this was seen by the investors as a source of further instability on the political front. Besides politics, concerns over rising inflation (low-base effect), creeping up oil prices, news regarding possible withdrawal of corporate tax exemptions and resurgence in COVID-19 cases, further dented the sentiment.

    Meanwhile, on the last working day, investors’ expectation of the Government candidate retaining his position as Chairman Senate helped to revive sentiments.

    The market settled at 43,788 points, shedding 2,049 points (down by 4.5 percent) WoW.

    This week was the worst week in terms of points as well as percentage over the last almost one year (week ending March 27, 2020 saw a decline of 2,558 points/8.34 percent WoW).

    Sector-wise negative contributions came from

    i) Technology & Communication (353 points),

    ii) Cement (304 points),

    iii) Fertilizer (224 points),

    iv) Oil & Gas Exploration (169 points) and

    v) Pharmaceuticals (143 points).

    Whereas sectors that contributed positively include i) Insurance (22 points) and ii) Tobacco (2 points).

    Scrip-wise negative contributors were TRG (278 points), LUCK (135 points), ENGRO (107 points), PPL (68 points) and SYS (67 points) while positive contributors included AICL (25 points), BAHL (21 points) and MCB (11 points).

    Foreign buying this week clocking-in at USD 3.6 million compared to a net sell of USD 10.7 million last week. Buying was witnessed in Commercial Banks (USD 2.3 million) and Food and Personal Care Products (USD 0.4 million). On the domestic front, major selling was reported by Mutual Funds (USD 9.1 million) and Insurance Companies (USD 5.6 million).

    Average volumes arrived at 433 million shares (up by 12 percent WoW) while average value traded settled at USD 138 million (up by 7 percent WoW).

  • FBR constitutes committees for integration of Tier-I retailers

    FBR constitutes committees for integration of Tier-I retailers

    ISLAMABAD: Federal Board of Revenue (FBR) has constituted central committee and regional committees to oversee the integration of Tier-I retailers with the FBR system.

    The FBR said that in pursuance of the Memorandum of Understanding (MOU) signed between the FBR and the Chainstore Association of Pakistan (CAP) on October 28, 2020, a central committee and regional committees have been constituted to oversee the process of integration of Tier-I Retailers.

    The central committee would look into issues related to input tax issues, HS Code issues, customer incentivization, software problems etc.

    Similarly, the Regional Committees would be responsible for identification Tier-I and Tier-II retailers in their respective areas and to liaise with the chief commissioners concerned besides resolving sectoral as well as individual issues of retailers.

    Following Central and Regional Committees have been constituted comprising of FBR and CAP’s representatives:

    Central Committee:

    FBR Representatives:

    i. Director General Retail

    ii. Chief (IR- Analysis)

    iii. Second Secretary Retail

    CAP’s Representatives:

    i. Tariq Mehboob

    ii. Irfan Iqbal Sheikh

    iii. Asfandyar Farrukh

    iv. Mardan Ali Zaidi

    v. Mohammad Shamsuddin

    vi. Mustafa Bashir

    vii. Raheel Meghani

    viii. Sheikh Owais Mehmood

    ix. Addel Rauf

    x. Tanveer Niaz

    xi. Ch. Asim Ghous

    xii. Mohammad Imran Saleemi

    Karachi Region Committee

    FBR Representatives:

    i. Chief Commissioner Inland Revenue, MTO Karachi

    ii. Focal Person, POS integration, MTO Karachi.

    CAP’s Representatives:

    i. Asfandyar Farrukh

    ii. Junaid Dandia

    iii. Salman Saeed

    iv. Raheel Meghani

    v. Mustufa Bashir

    vi. Rafiq Chamdia

    Lahore Region Committee

    FBR Representatives:

    i. Chief Commissioner Inland Revenue RTO, Lahore

    ii. Focal Person, POS integration, RTO Lahore

    CAP’s Representatives:

    i. Tariq Mehmood

    ii. Wasif Butt

    iii. Mohammad Imran Saleemi

    iv. Mardan Ali Zaidi

    v. Asim Javed

    vi. Omar Saeed

    Islamabad Region Committee

    FBR Representatives:

    i. Chief Commissioner Inland Revenue RTO, Islamabad

    ii. Focal Person, POS integration, RTO Islamabad

    CAP’s Representatives:

    i. Shaikh Owais Mehmood

    ii. Asim A Majeed

    iii. Ahszan Zafar Bakhtawari

    iv. Shamsuddin Sultan Ali

    v. Addel Rauf

    vi. Ch. Tahir

  • SRB website under cybersecurity threat

    SRB website under cybersecurity threat

    KARACHI: The official website of Sindh Revenue Board (SRB) has been identified as cyber-vulnerable and prone to citizen’s data leakage.

    National Telecom and Information Technology Security Board (NTISB) has issued an advisory through a notification dated March 03, 2021.

    It said that critical vulnerabilities had been identified in website of SRB (notification can be downloaded https://download1.fbr.gov.pk/Docs/202131115323494Advisory8.pdf) that may result in database access and manipulation, exfilteration of sensitive data, remote take-over of users’ sessions and website defacement.

    Identified vulnerabilities are as under:

    a. SQL injection in database

    b. Citizen’s data leakage

    c. Cross site scripting

    d. Unecrypted/plain text transfer of users’ credentials

    e. Cross site request forgery

    f. Microsoft IIS Tilde directory enumeration

    g. Internal IP addresses and server-side paths disclosure

    h. Session cookies lacking secure flags

    i. Server/ASP net version disclosure

    j. Stack traces and error messages on web pages

    k. Server-side technology stack documentation pages on public website.

    For impact of above mentioned vulnerabilities and guidelines for prevention can be downloaded https://download1.fbr.gov.pk/Docs/202131115323494Advisory8.pdf

  • Pakistan, Iran reiterate resolve to promote economic, trade linkages

    Pakistan, Iran reiterate resolve to promote economic, trade linkages

    ISLAMABAD: Pakistan and Iran on Friday reiterated resolve to promote economic and trade linkages between the two countries.

    Hassan Abghari, Deputy Minister of Economic and Finance Affairs and the Managing Director, Iran Foreign Investment Company (IFIC) of the Islamic Republic of Iran called on the Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, at the Finance Division on Friday.

    Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh extended a warm welcome to the H.E Deputy Minister of Economic and Finance Affairs who was accompanied by the Deputy Head of Mission Muhammad Surkhabi, Embassy of Iran.

    They exchanged views on matters of common interests and reiterated resolve to promote economic and trade linkages between the two countries by building upon historical ties, geographical proximity, cultural affinities and economic commonalities.

    The Finance Minister emphasized to find ways for furthering trade relations.

    The Pakistan Iran Investment Company can play a pivotal role in strengthening trade and investment between the two countries, he added.

    The Finance Minister briefed His Excellency Deputy Minister that Government of Pakistan is pursuing a broad-based economic reform agenda to achieve export led growth and sustainable economic development.

    He apprised about the economic challenges posed by the COVID-19 pandemic and outlined socio-economic measures taken by the Government of Pakistan to lessen the adverse impact of the pandemic on marginalized sections of the society.

    The government announced largest ever Fiscal Stimulus Package and introduced the strategy of a smart lockdown to protect the vulnerable segments of the society which has been acknowledged worldwide, he stated.

    The current Government is firmly committed to correct fundamentals of the economy through effective policy making and targeted reforms with an aim to achieving sustainable and inclusive growth strategy, he concluded.

  • Share market rebounds with gain over 1,000 points

    Share market rebounds with gain over 1,000 points

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 43,788 points from previous day’s closing of 42,780 points, showing an increase of 1,008 points.

    Analysts at Arif Habib Limited said that post clearance of leveraged positions of Individual investors, market bounced back today with a jump of 1206 points during the session and a net increase of 1008 points at the end of session.

    Cement and Steel sectors contributed significantly to the surge in index. Technology stocks, which were the subject of leveraged positions, bounced back from session’s low, however, by the end of session selling commenced back in tech stocks, which brought the index down from session’s high.

    Besides, excitement of senate elections also had some bearing on the stock market, where a win on Government’s part was considered to be a source of confidence for the Investors.

    Among scrips, UNITY topped the volumes with 88.2 million shares, followed by TRG (38.8 million) and JSCL (17.7 million).

    Sectors contributing to the performance include Cement (+223 points), Banks (+151 points), E&P (+90 points), Power (+83 points) and O&GMCs (+70 points).

    Volumes increased from 406.1 million shares to 442.4 million shares (+9 percent DoD). Average traded value also increased by 22 percent to reach US$ 137.4 million as against US$ 112.7 million.

    Stocks that contributed significantly to the volumes include UNITY, TRG, JSCL, PRL and TELE, which formed 41 percent of total volumes.

    Stocks that contributed positively to the index include LUCK (+76 points), HUBC (+61 points), HBL (+46 points), PSO (+43 points) and SYS (+43 points). Stocks that contributed negatively include ANL (-9 points), ENGRO (-6 points), TRG (-4 points), ABOT (-2 points) and SHFA (-2 points).

  • Rupee eases by five paisas against dollar

    Rupee eases by five paisas against dollar

    KARACHI: The Pak Rupee fell by five paisas against the dollar on Friday owing to demand for import and corporate payments ahead of two weekly holidays.

    The rupee ended Rs157.14 to the dollar from previous day’s closing of Rs157.09 in the interbank foreign exchange market.

    Currency dealers said that the market witnessed higher demand for the foreign currency ahead of two weekly holidays.

    The dealers said that the market sentiments were remained positive due to significant increase in workers’ remittances and export receipts.

    They hoped the local unit would make gain in coming days owing to better inflows.

  • Ministry issues import, export of e-commerce rules

    Ministry issues import, export of e-commerce rules

    ISLAMABAD: The ministry of commerce has issued rules for assessment and clearance of imported or exported goods through e-commerce.

    The ministry issued SRO 14(I)/2021 for the application of the rules that will apply for assessment and clearance of imported or exported goods of business to consumer (B2C) transactions through authorized dealer via designated customs stations.

    However, these rules will not apply on the following goods:

    (a) Goods requiring testing of samples;

    (b) Animals;

    (c) Perishable goods;

    (d) Food stuff including beverages;

    (e) Medicines of any sort;

    (f) Alcoholic drinks;

    (g) Restricted items subject to fulfillment of import and export regulations under the relevant law;

    (h) Prohibited under sections 15 and 16 of the Customs Act, 1969 along with allied law; and

    (i) Import and export goods which are intended for clearance from customs stations or airport other than at which arrived.

    The ministry defined the e-commerce as buying and selling of goods or services including digital products through electronic transactions conducted via the internet or other computer mediated (online communication) networks.

    According to the rules, the registered courier shall file the prior arrival manifest of e-commerce goods. The risk management system shall be applied at the manifest filing stage.

    A consumer shall provide the details of shipment and e-commerce importer. E-commerce goods of the consumer shall be cleared upon provision of information prior to the manifest or post arrival of the goods.

    The goods declaration shall be filed by the registered courier on behalf of e-commerce importer and exporter on the specified type of goods declaration for the purpose of e-commerce.

    The goods shall be cleared upon examination and assessment through WeBOC system upon decision by the RMS.

    Duty and taxes shall be paid by the e-commerce importer and exporter through methods, included: self payment by the e-commerce importer and exporter through a unique payment ID; or payment through authorized registered courier.

  • No sale to be allowed without tax stamp: FBR

    No sale to be allowed without tax stamp: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that no product would be allowed to be removed from a production site without affixation of tax stamps with effect from July 01, 2021.

    The tax stamps to be obtained/procured from and applied by FBR’s Licensee M/s. AJCL/MITAS/Authentix Consortium.

    The FBR said that after awarding license of the Track and Trace system to the successful bidder, FBR has issued four Sales Tax General Orders for Four specified Sectors. These sectors include Tobacco, Sugar, Cement and Fertiliser.

    These Sales Tax General Orders are being issued under the provisions of Section 40C(2) of the Sales Tax Act, 1990 read with Rule 150ZF of the Sales Tax Rules, 2006.

    These laws mandate FBR to notify the date for the implementation of Electronic Monitoring of productions and sales of goods in the manner prescribed in the law on all manufacturing sites.

    FBR has directed All manufacturers of specified Products to make necessary arrangements for importation of applicators and other equipment required for successful installation and implementation of Track and Trace System at their production facilities.

  • Zeeshan Merchant elected KTBA president for second consecutive term

    Zeeshan Merchant elected KTBA president for second consecutive term

    KARACHI: Muhammad Zeeshan Merchant has been elected as president of Karachi Tax Bar Association (KTBA) for the second consecutive time in the elections of the bar held on Thursday.

    Merchant secured 401 votes for the slot of president. The other candidate Muhammad Imtiaz Zubairi could get only 141 votes.

    It is pertinent to mention that it was the first time in the past 20 years that the KTBA members were casting their votes for all the slots.

    Merchant has been elected as the president of the KTBA for the second consecutive term for the year 2021. He already served on the same portfolio for the year 2020.

    He was contesting for the presidentship of the KTBA from the platform of United Panel. All the candidates of the United Panel have been elected with a big margin.

    Muhammad Memood Bikiya has been elected vice president.

    Syed Faiq Raza Rizvi, Shiraz Khan and Haris Tufail have been elected for the slot of honorary general secretary, librarian and honorary joint secretary, respectively.

    The successful members of the executive committee are included: Asim Rizwani Sheikh, Abdul Wahab, Irfan Ghafoor, Muhammad Mustafa Rahim, Raeel Fatima, Syed Ejaz Ahmed Jafry, Saud ul Hasan and Atif Nawaz.

  • Importers face surcharges on overstayed consignments

    Importers face surcharges on overstayed consignments

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has discussed the matter of overstayed consignments at warehouses which was causing surcharges on clearance to importers.

    FPCCI President Mian Nasser Hyatt Maggo on Thursday said that due to COVID-19 commercial activities are down causing overstay of consignments and subsequently facing surcharge on clearance. During the meeting of the FPCCI Advisory Council on Budget various issues were discussed including period of limitation of warehousing.

    The President FPCCI said that the economic slowdown, recession in the market and financial constraints due to COVID-19, importers are unable to clear their consignments in time which has led to a situation where large quantities of warehoused goods have piled up incurring heavy surcharge as no general concession has so far been extended by the Federal Government in this matter. The situation is also impacting substantial amount of revenue.

    During the meeting of the Advisory Council headed by Mr. Zakariya Usman former President of FPCCI issue of importers of raw material were presented who are facing problems due to their consignments lying in customs bonded warehouses beyond the period stipulated under section 98 of the Customs Act, 1969. The meeting resolved to approach FBR to consider grant of waiver of surcharge on overstayed consignments in order to alleviate the problems of the importers.

    Mian Nasser Hyatt Maggo President FPCCI said that the government under the present difficult circumstances may favourably consider the enhancement of customs bonded warehousing period limitation up 60 days so as to mitigate hardship of importers.