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Author: Mrs. Anjum Shahnawaz

  • FBR updates rates of duty, tax on import of vehicles

    FBR updates rates of duty, tax on import of vehicles

    ISLAMABAD: Federal Board of Revenue (FBR) has issued updated rates of duty and tax for customs clearance of imported vehicle.

    The Federal Government of Pakistan has extended various benefits / exemptions to the taxpayers for importing vehicles, according to updated rates up to June 30, 2020.

    The details concessions / exemptions are given as under:-

    i. S.R.O. 577(I)/2005 Dated 06.06.2005 (Exemption from customs duty, sales tax, withholding tax on import of certain specified Old and used automotive vehicles)

    The import of old and used automotive vehicles of Asian makes meant for transport of persons, specified in column (2) of the Table below, falling under PCT heading No. 87.03 of the First Schedule to the Customs Act, 1969 (IV of 1969), is exempted from so much of the customs-duty, sales tax and withholding tax as are in excess of the cumulative amount specified in column (3) thereof,

    Sr. NoAutomotive vehicles of Asian makes meant for transport of persons.Duty and taxes in US$ or equivalent amount in Pak rupees.
    (1)(2)(3)
    1Up to 800ccUS$4800
    2Up to 801-1000ccUS$6000
    3From 1001 – 1300ccUS$13200
    4From 1301 – 1500ccUS$18590
    5From 1501 – 1600ccUS$22550
    6From 1601 – 1800cc (Excluding Jeeps)US$27940

    It is relevant to mention that the Federal Government has fixed the leviable duty and taxes of automotive vehicles of Asian makes meant for transport of persons as discussed above irrespective of their physical condition. The Customs officers do not have any discretionary power to increase / decrease the leviable duties / taxes, the FBR said.

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  • Pakistan pays Rs119.22 billion for import of mobile phones

    Pakistan pays Rs119.22 billion for import of mobile phones

    ISLAMABAD: Pakistan has paid Rs119.22 billion for import of mobile phones during the first five months (July – November) of 2020/2021 owing to high demand for online financial transactions in the wake of coronavirus.

    According to data released by Pakistan Bureau of Statistics (PBS), the import of mobile phones surged by 53 percent to Rs119.22 billion during the first five months of the current fiscal year as compared with Rs78 billion in the corresponding months of the last fiscal year.

    Industry sources said that the import of mobile phones surged due to the coronavirus pandemic and people opted to make financial transactions through an online system.

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

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

    The import of mobile phones in terms of dollar grew by 45 percent to $724 million during the first five months of the current fiscal year as compared with $498 million in the same period of the last fiscal year.

  • Car import surges by 194 percent in five months

    Car import surges by 194 percent in five months

    ISLAMABAD: The Import of motor cars in Completely Built Unit (CBU) has surged by 194 percent during the first five months (July – November) of the current fiscal year owing to ease in travel restrictions that were imposed due to the coronavirus pandemic.

    According to the Pakistan Bureau of Statistics (PBS), the import of cars increased to $77 million during the first five months of the current fiscal year as compared with $26.13 million in the same period of the last fiscal year.

    As per import policy of Pakistan every person can bring a new motor car by paying prevailing rate of duty and taxes. However, the commercial import of motor cars is not allowed.

    The import of used cars are allowed under various schemes to facilitate Pakistanis living abroad. The overseas Pakistanis can bring motor cars under personal baggage, transfer of resident or gift schemes.

    New vehicles can be imported into Pakistan freely by any one against payment of duty & taxes under generally applicable import procedures and requirements.

    Officials in Pakistan Customs said that Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under the following 03 schemes: Personal Baggage; Gift Scheme; Transfer of Residence.

    Cars not older than 03 years and other vehicles not older than 05 years can be imported under these schemes.

    The structure of duty and taxes under these 03 schemes remains the same. Motorcycles and Scooters can only be imported under Transfer of Residence Scheme.

    Students receiving remittance from Pakistan, non-earning members of the Pakistani nationals living abroad and those who have imported, gifted or received a vehicle in the past two years are not eligible.

    The customs authorities said that all vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme, the duty and taxes shall be paid out of foreign exchange arranged by Pakistan nationals themselves or local recipient supported by bank enchashment certificate showing conversion of foreign remittance to local currency, as under:

    a. the remittance for payment of duty and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and

    b. the remittance shall either be received in account of Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his family.

  • Pakistan’s knitwear export jumps up by 14.34 percent in five months

    Pakistan’s knitwear export jumps up by 14.34 percent in five months

    KARACHI: Pakistan’s knitwear export has jumped up by 14.34 percent to $1.51 billion during the first five months (July – November) of the current fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    The export of knitwear was at $1.32 billion during the same period of the last fiscal year.

    The total export of textile products posted five percent growth to $6.04 billion during the first five months of the current fiscal year as compared with $5.76 billion in the corresponding months of the last fiscal year.

    The export of knitwear remained the largest component contributing around 25 percent of the total textile export.

    In terms of value, export of readymade garments was the second largest component of textile export. The export of readymade garments posted 4.36 percent growth to $1.2 billion during July – November 2020/2021 as compared with $1.15 billion in the corresponding period of the last fiscal year.

    The export of bedwear registered 12.28 percent increase to $1.138 billion during the first five months of the current fiscal year as compared with $1.01 billion in the same period of the last fiscal year.

    The export of cotton cloth fell by 8.73 percent to $773.17 million during July – November 2020/2021 as compared with $847 million in the corresponding period of the last fiscal year.

    Similarly, the export of cotton yarn fell by 37.34 percent to $304.55 million during the period under review as compared with $486 million in the same period of the last fiscal year.

  • Weekly Review: market likely to extend bull-run

    Weekly Review: market likely to extend bull-run

    KARACHI: The stock market likely to extend its bull run on the back of easing in political noise. Further, vaccine for coronavirus may also help in boosting investors’ sentiments.

    Analysts at Arif Habib Limited said that the index is expected to continue extending its bull run on the back of diluting political noise.

     Moreover the approval of Moderna’s vaccine is expected any time soon which is another leap forward in the battle against COVID-19.

    Healthy corporate earnings are expected during second quarter of the current fiscal year which should continue fueling the positive sentiments.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) index is currently trading at a PER of 7.4x (2021) compared to Asia Pac regional average of 14.1x and while offering DY of 6.1 percent versus 2.4 percent offered by the region.

    The local bourse continued its bullish momentum this week, settling at 43,741 points (up 2.3 percent WoW). This week the index also crossed a 2.5-Yr high and thus now stands at the highest level during the present government’s tenure.

    US FDA’s finding of Moderna’s vaccine as “highly effective” was a big step closer to the approval of another vaccine (after Pfizer/BioNTech’s vaccine) – a major boon for global investment sentiment. This week Pakistan paid its second installment of the USD 3 billion loan from Saudi Arabia, through commercial borrowing from China.

     Moreover, POL products’ prices were raised this week (up to 7.9 percent) on the back of recovery in global oil prices (Arab Light is up 19 percent MoM).

    Sector-wise positive contributions came from i) Banks (342 points), ii) Fertilizers (231 points), and iii) Oil & Gas Exploration (202 points) while Power Generation & Distribution declined 37 points. Scrip-wise positive contributions were led by OGDC (112 points), FFC (95 points), MEBL (68 points), ENGRO (64 points), and PSO (63 points). HUBC and KOHC led the negative contributions, declining 43 and 15 points respectively.

    Foreign selling continued this week clocking-in at USD 9.4 million compared to a net sell of USD 9.6 million last week. Selling was witnessed in Commercial Banks (USD 11.0 million) and Fertilizer (USD 1.4 million). On the domestic front, major buying was reported by Banks / DFIs (USD 7.1 million and Individuals (USD 5.1 million). Average volumes arrived at 549 million shares (up by 22 percent WoW) while average value traded settled at USD 154 million (up by 25 percent WoW).

  • FBR’s valuation of immovable properties in Karachi

    FBR’s valuation of immovable properties in Karachi

    ISLAMABAD: Following is the table of valuation of immovable properties in Karachi issued by the Federal Board of Revenue (FBR) for the purpose of deduction and collection of withholding tax.

    The valuation of immovable properties in Karachi has been issued through SRO 837(I)/2019 dated July 23, 2019 in supersession of notification SRO 120(I)/2019 dated February 01, 2019.

    The valuation of immovable properties is applicable from July 24, 2019.

    The FBR said that:

    (i) Values in the above table are in rupees;

    (ii) value is per square yard of the covered area of ground floor plus covered area for the additional floors;

    (iii) commercial property built up value is per square yard of the covered area of the ground floor plus covered area of the additional floors, if any;

    (iv) built up industrial property value is per square yard of the plot area per square foot;

    (v) the value in respect of a residential building consisting of more than one storey shall be increased by 25 percent for each additional storey i.e. value of each storey other than ground floor shall be calculated at 25 percent of the value of the ground floor;

    (vi) a property which does not appear to fall in any of the categories shown in the Appendix below shall be deemed to fall in the adjacent lowest category of the Appendix;

    (vii) whether the land has been granted for more than one purpose. Viz residential, commercial and industrial, the valuation in such a case shall be the mean/average prescribed rate;

    (viii) a flat means the covered residential tenement having separate property unit number / sub-property unit number;

    (ix) in residential, multi storey building, additional storey shall be charged if it consists of bed room and bath room;

    (x) the rates for basements of built in commercial property in categories I, II, III and IV shall be Rs13,500 per square yard; and

    (xi) area-wise categories are in the following appendix

  • FBR officers to be deputed at FAFT secretariat

    FBR officers to be deputed at FAFT secretariat

    Officers from the Federal Board of Revenue (FBR) will be posted at the Financial Action Task Force (FATF) Secretariat on a deputation basis.

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  • Stock market eases in range bound trading

    Stock market eases in range bound trading

    KARACHI: The stock market ended down by 26 points on Friday in a range bound trading activity during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,741 points as against 43,767 points showing a decline of 26 points (-0.1 percent DoD).

    Analysts at Arif Habib Limited said that the market traded range bound today with an oscillation of around 300 points between +188 points and -128 points.

    The index closed -26 points, however, it virtually touched 44,000 level intra-day. Investors were already perturbed about the coming short roll-over week, which has generally brought selling pressure, and also had to face a fresh threat as highlighted by FO press conference, relayed in the last hour of trading.

    Investors, in general, resorted to profit booking rather than carrying positions over the weekend. Key stocks in Banks, E&P and O&GMCs helped the index stay afloat.

    Last half hour saw brisk activity in Steel sector that improved the price performance of underlying stocks. Among scrips, PRL topped the volumes with 38 million shares, followed by FFL (31.4 million) and KEL (28.6 million).

    Sectors contributing to the performance include O&GMCs (+21 points), Autos (+14 points), Banks (+14 points), Fertilizer (-42 points) and Cement (-26 points).

    Volumes declined from 497.5 million shares to 482.6 million shares (-3 percent DoD). Average traded value on the contrary increased by 5 percent to reach US$ 148.2 million as against US$ 140.8 million.

    Stocks that contributed significantly to the volumes include PRL, FFL, KEL, ICIBL and PAEL, which formed 30 percent of total volumes.

    Stocks that contributed positively to the index include PSO (+28 points), THALL (+15 points), ANL (+14 points), HBL (+10 points) and NBP (+9 points). Stocks that contributed negatively include ENGRO (-34 points), PPL (-11 points), HUBC (-10 points), KTML (-7 points) and KOHC (-7 points).

  • FPCCI welcomes wavier of Form-E for small exporters

    FPCCI welcomes wavier of Form-E for small exporters

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday welcomed the decision of the central bank for removing the condition of Form-E to facilitate small scale exporters.

    FPCCI President Mian Anjum Nisar in a statement applauded the State Bank of Pakistan (SBP) for the waiver of the E-form requirement for up to the US $5000 per consignment for small industries. He said that this move will facilitate the small exporters, especially women business entrepreneurs, and will tremendously boost the exchequer.

    The State Bank of Pakistan has exempted exports from the E-form requirement for up to the US $5000 per consignment in order to boost exports in the changing situation of global consumer markets due to the Covid-19 epidemic crisis. The State Bank of Pakistan has issued a detailed regulatory framework to facilitate Business-to-Consumer (B2C) E-Commerce exports from Pakistan.

    He said that this exemption will facilitate the exporters for sending goods directly to consumers market and will encourage many others who were not able to face the documentations complications.

    FPCCI always recommends the Government for business friendly policies for the small traders and enterprises. FPCCI appreciates the Government and the State Bank of Pakistan for addressing the concerns and considered the recommendations of FPCCI in this regard.

    The FPCCI welcomes the SBP statement in the perspective of global lockdown for Covid-19 pandemic, that consumer market place has now shifted from traditional market place to E-commerce.

    Pakistan needs to adopt the modern business dynamics of E-commerce. In line with these trends, the SBP focused on facilitating cross border trade for B2C exports from Pakistan.

    The SBP collaboration with the relevant stakeholders including the Business Community, Pakistan Customs, Ministry of Commerce, Courier Companies, and Banking Industry in a bid to develop a regulatory framework was also appreciated which will not only address the market needs but also take into account regulatory objectives.

  • Rupee gains two paisas amid demand for dollar

    Rupee gains two paisas amid demand for dollar

    KARACHI: The Pak Rupee gained two paisas against the dollar on Friday amid demand for import and corporate payments.

    The rupee ended Rs160.09 against the dollar from previous day’s closing of Rs160.11 in the interbank foreign exchange market.

    Currency dealers said that demand for the foreign currency was remained higher due to upcoming weekly holidays. However, inflows of export receipts and workers remittances helped the rupee to make gain.

    Currency experts said that the rupee likely to make gain in coming days due to positive economic indicators.