Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Procedure for investment through Pound Sterling, Euro in NPC

    Procedure for investment through Pound Sterling, Euro in NPC

    KARACHI: State Bank of Pakistan (SBP) on Friday issued procedure for making investments in Naya Pakistan Certificate (NPC) through foreign currencies i.e. Pound Sterling (GBP) and Euro.

    The SBP informed all agent banks that Government of Pakistan, Finance Division (External Finance Wing), vide Gazette notification S.R.O.211(I)/2021, dated February 18, 2021 had notified that the NPCs shall also be issued in Pound Sterling (GBP) and Euro in following maturities, carrying gross rate of return (before deduction of tax) as under:-

    The minimum investment in both the currency shall be 5,000.

    The rate of return in case of GBP is 5.25 percent, 5.5 percent, 5.75 percent, 6.25 percent and 6.5 percent for tenors 03-month, 06-month, 13-month, 03-year and 05-year, respectively.

    The rate of return in case of Euro is 4.75 percent, 5 percent, 5.25 percent, 5.5 percent and 5.75 percent for tenors 03-month, 06-month, 13-month, 03-year and 05-year, respectively.

     The 3-Month, 6-Month and 12-Month tenor certificates shall be single-coupon securities on which principal and profit shall be paid on maturity or on premature encashment.

    Whereas, 3-Year and 5-year certificates shall be coupon securities, on which periodic profit payment shall be paid on half-yearly basis.

    The procedure for investment in Certificates, periodic coupon payment, pre-mature encashment and redemption at maturity as notified vide above referred Circular, shall also apply to the NPCs denominated in GBP and Euro. However, the agent banks shall remit the face value of the Certificates to the following nostro accounts of SBP maintained with United National Bank London (GBP) and NBP Frankfurt (Euro):-

  • EMV chip, PIN compliant cards made mandatory for ATM, POS networks

    EMV chip, PIN compliant cards made mandatory for ATM, POS networks

    KARACHI: The State Bank of Pakistan (SBP) on Friday made mandatory for ATM and POS networks to only accept Europay MasterCard Visa (EMV) Chip and PIN compliant payment cards for payments and online e-commerce services.

    To eliminate the risk of skimming of payment cards by fraudsters, SBP has directed that ATM and POS networks in Pakistan shall only accept EMV Chip and PIN compliant payment cards in the country.

    The SBP said that in order to promote digital payments, SBP has been taking steps to make them more secure, introducing new features and promoting their use.

    In consultation with the industry and other stakeholders, SBP has taken more steps to make digital transactions and card payments more secure and easier.

    Now the consumers will only have Europay MasterCard Visa (EMV) Chip and PIN compliant payment cards, which will be active right from the day issued to themfor payments and online e-commerce services.

    They will be able to make payments up to Rs. 3,000 by just tapping the card on POS machines and no PIN will be required.

    Consumers will also be able to make loan repayments through cards. They will be able to lodge complaints through digital channels without the need to visit a bank branch. State Bank has directed the banks to implement all these measures by June 30, 2021.

    The measure, aimed at further strengthening the security of digital payments and curtailing the risk of frauds, is a culmination of SBP’s efforts that started in 2016 outlining a detailed roadmap for adoption of EMV Chip and PIN standard for payment cards in Pakistan. Banks have also been directed to step-up their efforts to facilitate customers in case they face any issue while using their payment cards.

    SBP has allowed those banks who have already implemented 3-D Secure (an international standard that secures online e-commerce transactions) can now activate their customers’ payment cards for online e-commerce transactions without the need of specific requests for activation. Earlier in 2019, SBP had directed banks to implement 3-D Secure protocol to prevent frauds in online transaction and as a result, 15 banks had already adopted this international standard for securing online transactions. The new measure is expected to promote online e-commerce ecosystem and shape consumer behavior towards online e-commerce digital payments in the country.

    To make it easier and quicker to make small payments, SBP has allowed banks to relax the requirement of entering PINs for transactions up to PKR. 3,000. Banks depending on their risk management policies may decide on the amount, which may be exempted from PIN requirement on card transactions including contactless payments. However, SBP has directed banks to ensure that customers are adequately protected from undue liability arising out of misuse of this facility. With this measure, SBP hopes to see wider adoption of card-based payment acceptance by merchants who may be reluctant to do so because of longer processing times.

    Taking notice of consumer complaints regarding delays in receiving refunds after resolution of disputes, SBP has directed all banks to immediately credit customer accounts once they receive fund from either merchants or acquiring banks. The regulator has also directed banks to facilitate their customers in registering their complaints and disputes using mobile apps and internet banking portals without the need for physically visiting branches. 

    Enhancing the drive towards digitization of payments, SBP has also directed all banks/microfinance banks to take measures to facilitate their borrowers in making repayments of loans such as consumer loans, auto loans etc. digitally using internet and mobile banking applications of any bank.

  • ECC approves tax recommendations for telecom sector

    ECC approves tax recommendations for telecom sector

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved tax recommendations for telecom sector, which were already endorsed by the Federal Board of Revenue (FBR).

    Secretary, Ministry of Information Technology and Telecommunication presented a summary regarding taxation issues of the Telecom Sector.

    The ECC had earlier constituted a sub-committee dated October 20, 2020, under the Chairmanship of the Adviser to the PM Dr. Ishrat Hussain, for due deliberation.

    The sub-committee presented its recommendations before ECC. The Committee approved these recommendations as endorsed by FBR.

    Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Friday.

    Federal Minister for National Food Security and Research Syed Fakhar Imam, Federal Minister for Industries and Production Hammad Azhar, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, SAPM on Petroleum Nadeem Babar and Chairman Board of Investment (BOI) Atif Bokhari participated in the meeting.

    Ministry of Industries and Production presented a summary before ECC regarding revision of subsidized prices of essential commodities by the Utility Stores Corporation of Pakistan, in accordance with the earlier directive of ECC dated 28 January, 2021.

    Secretary, M/o Industries and Production presented various proposals to rationalize prices of wheat flour, sugar and ghee in view of continuous fluctuations in international commodity prices.

    After detailed discussion, the ECC approved only partial rationalisation and directed to provide maximum relief to the consumers despite significant price differential between subsidized price offered by the USCs and the prevailing prices in the domestic markets.

    This is in compliance with the Prime Minister’s Relief Package-2020 to provide basic commodities at affordable rates through a network of Utility Stores across Pakistan.

    ECC also approved another summary by the Ministry of Industries and Production for outstanding payment to M/s Ocean Wide Shipping Services, amounting to USD 0.58 million from Pakistan Steel Mills to fulfill a contractual obligation for transportation of coal during the year 2010.

    The ECC considered a summary by the Ministry of Energy (Petroleum Division) regarding tax on payments to the offshore supply contractor to meet the contractual obligation. The ECC established a sub-committee comprising SAPM on Petroleum, Secretary Law Division, Secretary Power Division and FBR with a direction to evaluate the proposal and present workable recommendations before the forum for consideration.

    Ministry of Energy presented another summary about revocation of Neelum Jhelum (NJ) surcharge @ Rs.0.10 per KWH electricity consumers. The ECC considered and approved the revocation of Neelum Jhelum surcharge (with immediate effect).

    Secretary, Ministry of National Food Security and Research placed a summary before ECC regarding a mechanism for disbursement of subsidies in line with the Prime Minister’s Fiscal Package for Agriculture in the backdrop of COVID-19 pandemic. The summary was approved by the ECC for timely disbursements of subsidies to the Provinces by the M/o NFS&R subject to clearance by the Finance Division.

    The ECC also considered and approved a summary regarding Government’s sovereign guarantee for a PSDP project titled National Electronics Complex of Pakistan (NECOP, executed by National Engineering and Scientific Commission.

    Following Technical Supplementary Grants were also approved:

    • Rs. 550 million for Special Communications Organization (SCO) from Ministry of Information and Technology during the FY 2020-21.

    • Rs. 200 million were approved (out of total allocation of RS. 362.239 million) to Special Technology Zones (STZA) during the current financial year.

    • Rs. 109 million to Ministry of Information and Broadcasting (MOIB) to clear outstanding Bills related to media campaigns on behalf of Ehsaas Program during FY 2019-20.

  • Rules implemented for electronic issuance of income tax refunds

    Rules implemented for electronic issuance of income tax refunds

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday implemented the rules for electronic issuance of income tax refunds.

    The FBR issued SRO 214(I)/2021 to make amendments in Income Tax Rules, 2002. Previously, the FBR issued SRO 175(I)/2021 on February 10, 2021 inviting suggestions on the draft rules.

    According to the rules, a Centralized Income Tax Refund Office (CITRO) would be established for centralized payment of refunds.

    After completing all codal formalities the Commissioner Inland Revenue shall pass an order under Section 170(4) and transmit the order to CITRO. The same shall be reflected in CITRO in real time.

    The CITRO shall generate an electronic advice of approve amount for onwards submission to the State Bank of Pakistan (SBP) through dedicated VPN tunnel established between FBR and SBP. The SBP shall credit amount directly to the account of taxpayer.

    The SBP shall confirm the transfer of amount to the taxpayers account or vice versa electronically to CITRO.

    The CITRO shall reconcile the payments issued as per instructions during the month with the electronic scrolls received from the SBP and record the outcome of such reconciliation in the system.

    Where any payment instruction is returned back by the SBP due to any reason, the CITRO shall transmit the same to concerned commissioner for correction in payment instructions.

    The FBR shall ensure that complete data of refunds issued is made available to the concerned commissioner electronically.

  • Stock market gains 85 points in range bound trading

    Stock market gains 85 points in range bound trading

    KARACHI: The stock market gained 85 points on Friday in a range bound trading activities during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 46,228 points from previous day’s closing of 46,143 points, showing a gain of 85 points.

    Analysts at Toplines Securities said that the benchmark index witnessed a range-bound session making an intra-day high of 46,378 (up 0.51 percent) and a low of 46,137 (down 0.01 percent) to eventually close the day at 46,228 (up 0.18 percent).

    The result season continued in full swing with MTL posting an above expected 2QFY21 EPS of 30.2 (up 218 percen tYoY/30 percent MoM) along with a cash dividend of PKR 50/share and a 12.5 percent bonus issue, after which the stock closed at 1298.14 (up 7.5 percent).

    DGKC announced its 2QFY21 EPS of 2.6 (up 98 percent YoY) which was above industry expectation while FCCL posted its 2QFY21 EPS of 0.66 (up 371 percent YoY).

    BOP posted its annual EPS of 2.6 (down 17 percent) and lower than industry consensus, however a higher than expected dividend of PKR 1.0/share boosted investor sentiment and the stock closed the day at 9.40 (up 4.91 percent).

    Daily traded volume and value clocked in at 691.27 million shares (up 19.6 percent DoD) and PKR 24.78 billion (up 6.4 percent DoD) respectively. The volume leader for today was BYCO with 89.34 million shares traded.

  • PSEB, PSX to sign agreement for increasing listed tech companies

    PSEB, PSX to sign agreement for increasing listed tech companies

    ISLAMABAD: Pakistan Software Export Board (PSEB) and Pakistan Stock Exchange (PSX) will sign an agreement to enhance the number of listed technology companies.

    A statement issued on Friday said that the Memorandum of Understanding (MoU) is a giant leap forward for the development of Pakistan’s IT Industry.

    This would be the first-ever MoU between PSEB and Pakistan Stock Exchange.

    The aim is to increase the number of listed technology companies on the PSX Main Board & GEM Board which would in turn help to strengthen the financial ecosystem for IT sector growth and build a strong brand image of Pakistan’s IT industry in the international markets.

    There are significant benefits for Pakistani technology companies to list on the stock exchange. By listing on the stock exchange, a company gains instant credibility and stature with prospective clients and suppliers.

    This is a significant advantage particularly for Pakistani tech companies as it makes it easier to solicit overseas customers due to the increased credibility that comes from being listed on a reputed platform such as the Pakistan Stock Exchange.

    Listing on the stock exchange also improves corporate governance, and companies can maintain more autonomy and control through the ability to rapidly raise low-cost capital compared to banks, venture capitalists, or private investors.

    Managing Director PSEB Osman Nasir said that one of the main factors impeding the growth of Pakistan’s IT sector is access to capital. Pakistani tech companies that get listed on a Pakistan Stock Exchange would be able to raise funds by issuing more shares which can subsequently be used for further business expansion.

    He said that PSEB would work with Pakistan Stock Exchange to conduct seminars, workshops, and events to create awareness about the benefits for IT/ITeS companies for listing on PSX and work with PSX authorized financial advisors, consultants, and lead managers to assist the selected IT/ITeS companies for the listing.

  • Fauji Cement announces setting up new plant

    Fauji Cement announces setting up new plant

    KARACHI: Fauji Cement Company Limited has announced to set up a Greenfield Cement Manufacturing Plant of 2.05 million tons per annum at Dera Ghazi Khan.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said that consequent to construction activity picking up and significant spend on infrastructure, expected to continue, the board of directors of the company had decided to invest in additional cement capacity.

    According, the board of directors of Fauji Cement Company Limited in its meeting held on February 19, 2021 has approved subject to all regulatory approvals setting up of Greenfield Cement Manufacturing Plant of 2.05 million tons per annum at Dera Ghazi Khan.

    The equity portion of the expansion will be funded through internal cash generation.

    “The total project cost will be announced after conclusion of negotiation with the suppliers and contractors,” the company said.

    The construction work on the project is expected to commence with current financial year and is expected to have a construction period of above 2.5 years.

    Currently, the company is targeting financial closed by March 31, 2021.

  • FBR transfers BS-20 Customs officers

    FBR transfers BS-20 Customs officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified transfers and postings of BS-20 officers of Pakistan Customs Service (PCS) with immediate effect and until further orders.

    The FBR notified transfers and postings of following PCS officers:

    01. Abdul Qadir Memon (Pakistan Customs Service/BS-20) on return from NDU (awaiting posting), has been posted as Collector, Model Customs Collectorate, Hyderabad.

    02. Asif Saeed Khan Lughmani (Pakistan Customs Service/BS-20) has been transferred and posted as Collector, Collectorate of Customs (Adjudication), Islamabad from the post of Chief, Domain Team (IT-Customs), Federal Board of Revenue (Hq), Islamabad.

    03. Muhammad Adnan Akram (Pakistan Customs Service/BS-20) has been transferred and posted as Chief, Customs Wing, FederalBoard of Revenue (HQ),Islamabad from the post of Collector, Collectorate of Customs (Adjudication), Islamabad.

    04. Amer Rashid Sheikh (Pakistan Customs Service/BS-20) has been transferred and posted as Chief, Domain Team(IT-Customs), Federal Board ofRevenue (HQ), Islamabad from the post of Collector, Model CustomsCollectorate, Hyderabad.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR invites sales tax proposals for budget 2021/2022

    FBR invites sales tax proposals for budget 2021/2022

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday invited sales tax proposals for the federal budget 2021/2022 and directed the stakeholders to submit their suggestions by March 10, 2021.

    In a letter sent to chambers, association and other stakeholders, the FBR advised that the proposals should focus on broadening of the tax base and increase in revenue.

    The businessmen have been advised to give proposals to amend in following laws/rules:

    Sales Tax Act, 1990

    Federal Excise Act, 2005

    Sales Tax Rules, 2006

    Federal Excise Rules, 20052

    ICT (Sales Tax on Services) Ordinance, 2001.

    The FBR said that amendments should be suggested with a view to achieve simplification, remove difficulties and anomalies, and to abolish any outdated/obsolete provisions.

    “FBR would welcome proposals for eliminating tax fraud, fake and flying invoices, plugging loopholes if any, facilitating genuine taxpayers and making the procedures transparent,” it added.

    The proposals should be made keeping in view the consequences for the other related trade groups which might be adversely affected by the proposed measure.