Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SPI inflation rises by 11.28 percent YoY basis

    SPI inflation rises by 11.28 percent YoY basis

    ISLAMABAD: The inflation based on sensitive price indicator (SPI) has increased by 11.28 percent Year on Year by week ended October 08, 2020, Pakistan Bureau of Statistics (PBS) said on Friday.

    The PBS computes SPI on weekly basis to assess the price movements of essential commodities at shorter interval of time so as to review the price situation in the country.

    The SPI comprises of 51 essential items and the prices are being collected from 50 markets in 17 cities of the country.

    The SPI for the week under review over corresponding week October 10, 2019 has shown 11.28 percent increase

    The YoY increase in prices of essential items is as: tomatoes 117 percent; chilies powder 86.31 percent, potatoes 64.75 percent, pulse moong 41.13 percent, eggs 40.82 percent, pulse mash 34.66 percent, sugar 32.08 percent, pulse masoor 25.72 percent, bread plain 19.41 percent, gur (raw sugar) 19.34 percent, wheat flour bag 18.32 percent, vegetable ghee 1kg pouch 17.43 percent, mustart oil 16.32 percent.

    The YoY price increase of non-food items is: sufi washing soap 250 grams 17.49 percent match box 17.07 percent.

    The items which registered decline in price YoY basis are: garlic 9.91 percent, onions 1.50 percent, hi-speed diesel 18.03 percent, LPG 11.67kg cylinder 13.53 percent, petrol super 8.11 percent.

    The SPI has been increased by 1.24 percent by week ended October 08, 2020 over previous week October 01, 2020.

    The prices of following items increased on WoW basis: tomatoes 16.39 percent, onions 12.78 percent, eggs 10.78 percent, chicken 5.34 percent, wheat flour bag 2.78 percent, potatoes 2.64 percent, pulse masoor 1.21 percent, sugar 1.03 percent.

    Prices of essential items that registered decline on WoW basis are: Bananas 2.17 percent, pulse moong 0.4 percent, pulse mash 0.13 percent, gur (raw sugar) 0.04 percent.

  • No restriction on withdrawal, transfers from foreign currency accounts: ministry

    No restriction on withdrawal, transfers from foreign currency accounts: ministry

    ISLAMABAD: The ministry of finance on Friday issued rules governing foreign currency accounts of individuals under which there shall be no restriction on cash withdrawal or transfers from the foreign currency account.

    The ministry issues rules governing foreign currency accounts of individuals, under which a foreign currency account of an individual may be credited with the remittances received from abroad through banking channel except:

    — payment for goods exported from Pakistan;

    — payment for services rendered in or from Pakistan;

    — proceeds of securities issued or sold to non-residents; and

    — any foreign exchange borrowed from abroad under any general or special permission of the State Bank of Pakistan (SBP).

    It said that the SBP may issue any general or special permission for credit to the account.

    The rules however, stated that a foreign currency account may be credited through transfer from other individual foreign currency account.

    “Proceeds realized on account of profit, return and principal amount of investment made in any foreign currency dominated or foreign currency linked scheme of Government of Pakistan may be credited into the account,” it said.

    A foreign currency account shall not be credited with any foreign exchange purchased from an authorized dealer, exchange company or money changer except as allowed by the SBP through general or special permission under any law. However, foreign currency brought in from abroad and duly declared at the point of entry into Pakistan with Pakistan Customs may be credited in the account.

    The rules explained that there shall be no restriction on cash withdrawal or transfers from the foreign currency account.

  • Stock market gains 445 points as positive sentiments prevail

    Stock market gains 445 points as positive sentiments prevail

    KARACHI: The stock market gained 445 points on Friday as positive sentiments prevailed during the trading.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,798 points as against 40,354 points showing an increase of 445 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today, and after dipping 46 points earlier in the session, the index rebounded with the same vigor as observed in the past 2 sessions.

    Overall, the Index posted an increase of 2230 points since the recent bottom touched on October 6, 2020. Banking and E&P sectors performed well on the back of quarterly earnings as well as an increase in international crude oil prices.

    Among scrips, HASCOL led the volumes with 53.9 million shares, followed by UNITY (34.9 million) and TRG (21.4 million).

    Sectors contributing to the performance include Banks (+136 points), E&P (+88 points), Power (+44 points), Textile (+35 points), Autos (+35 points).

    Volumes declined from 476.8 million shares to 358.8 million shares (-25 percent DoD). Average traded value also declined by 24 percent to reach US$ 72.8 million as against US$ 96.2 million.

    Stocks that contributed significantly to the volumes include HASCOL, UNITY, TRG, BOP and WTL, which formed 39 percent of total volumes.

    Stocks that contributed positively to the index include HBL (+64 points), HUBC (+47 points), OGDC (+31 points), PPL (+29 points) and TRG (+27 points). Stocks that contributed negatively include PAKT (-14 points), HASCOL (-12 points), KEL (-5 points), NESTLE (-5 points) and ABOT (-4 points).

  • Mobile phone operators deduct only applicable tax rates: PTA

    Mobile phone operators deduct only applicable tax rates: PTA

    ISLAMABAD: Pakistan Telecommunication Authority (PTA) on Friday said that the Cellular Mobile Operators (CMOs) are deducting only applicable rates of taxes after the restoration of levies by Supreme Court of Pakistan.

    In a statement, with reference to taxes applied on the recharge/reload of prepaid balance, the PTA said that the CMOs are deducting only withholding tax and general sales tax/federal excise duty on the prepaid recharge/reload after restoration of taxes by the Supreme Court of Pakistan from April 2019.

    The PTA said that on the recharge of Rs200 balance provided to the user is Rs177.778 (and not Rs152 as reported on the social media) after deduction of Rs22.22 against withholding tax at 12.5 percent.

    General Sales Tax at 19.5 percent is applied on per call, SMS, data usage basis or opting for any additional bundle/package.

    “When a user consumes its remaining balance of Rs177.778, a total of Rs29.01 as GST is charged,” the PTA said.

    In the same way, if a package is priced at Rs167 (without GST), the same, requires a prepaid balance of Rs199.56 (Price+GST=Rs167+Rs32.56). Due to lack of clarity on the deduction of GST in addition to withholding tax, mobile subscribers are assuming that CMOs are charging well above applicable taxes, which is not correct, the PTA said.

    The PTA further said that it had fixed a ceiling on call setup charges at Re 0.15 per call. PTA is vigilant about the rates/tariffs being charged by CMOs and action will be initiated on any reported incidence of charging above the published tariffs and applicable taxes in accordance with the law, it added.

  • Rupee falls 12 paisas on dollar demand for import payment

    Rupee falls 12 paisas on dollar demand for import payment

    The Pakistani rupee experienced a slight decline against the US dollar on Friday, falling by 12 paisas due to increased demand for import and corporate payments. The rupee closed at Rs163.84 to the dollar in the interbank foreign exchange market, down from the previous day’s closing of Rs163.72.

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  • FBR grants tax exemption of Rs1.1 billion on gratuity payments

    FBR grants tax exemption of Rs1.1 billion on gratuity payments

    Islamabad – The Federal Board of Revenue (FBR) has granted a substantial exemption of Rs1.11 billion on gratuity payments during the tax year 2020.

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  • Rupee gains 25 paisas against dollar

    Rupee gains 25 paisas against dollar

    KARACHI: The Pak Rupee gained 25 paisas against the dollar on Thursday owing to improved economic indicators, dealers said.

    The rupee ended Rs163.72 to the dollar from previous day’s closing of Rs163.97 in interbank foreign exchange market.

    The currency dealers said that the due to lower demand for import and corporate payments and sufficient inflows of export receipts and workers remittances the rupee gained the value.

    They said that the sentiments were remained positive in the market due to escalating economic activities.

    The experts said that the exports registered 18.24 percent growth to $1.873 billion during September 2020 as compared with $1.58 billion in August 2020.

    They hoped that present positivity in the market would help the local unit to make gain further against the greenback.

  • SBP allows banks to outsource cash management function

    SBP allows banks to outsource cash management function

    KARACHI: State Bank of Pakistan (SBP) on Thursday allowed banks to outsource their case processing functions in order to provide more flexibility.

    The SBP said that through Circular No. 03 /2015 dated August 26, 2015, under which the banks required to automate cash processing function and disburse only machine authenticated good quality banknotes of higher denomination to the public.

    Presently all banks are issuing machine processed banknotes (Rs100 and above) to the public.

    The SBP said that the Cash Management System (CMS) has given flexibility to banks to either have their own cash processing facilities or make arrangements with other banks having the required capacity to get their cash processed.

    The outsourcing of processing of higher denominated banknotes was, however, kept restricted to other banks only having the requisite capacity as CMS did not allow outsourcing of this function to commercial cash processing companies.

    In order to further enhance the flexibility for banks to get their cash processed and encourage greater innovation and development of cost effective models for cash processing, it has been decided to allow banks to outsource their cash processing functions.

    “The banks may thus outsource their cash processing functions (sorting, authentication, and packing) for all denominations of banknotes to such cash processing companies having capacity to process the cash in full conformity with the CMS instruction.”

    Banks shall ensure that the cash processing company (service provider), if any engaged, operates in full conformity with the CMS instructions issued vide FD Circulars No. 03 /2015 dated August 26, 2015 and No. 02 / 2017 dated March 10, 2017 as amended from time to time.

    It is reiterated that compliance with the CMS instructions is the responsibility of banks outsourcing cash processing and any non-compliance of instruction by the service provider shall, for all intents and purposes be treated as non-compliance by the concerned bank, making the bank liable to penal action under the CMS.

    Banks shall contractually bind the service provider that SBP may conduct surprise visits of its CPCs, to assess the control environment and regulatory compliance regarding CMS.

    The Banks while engaging the service provider shall ensure compliance with SBP instructions on outsourcing arrangement with third parties, as issued vide BPRD Circular No. 6 of 2019 dated December 17, 2019, as amended from time to time.

    The Banks shall report all such arrangements to Finance Department SBP along with details of branches and ATMs to be fed through the outsourced service providers within seven (7) days of signing of contract with the service provider. The Banks shall also share the address(es) of the cash processing centers of the service provider and contact details of the CEOs and other senior management for SBP’s information and record.

  • Temporary import allowed against bank guarantee under policy order

    Temporary import allowed against bank guarantee under policy order

    ISLAMABAD: The ministry of commerce has said that temporary import-cum-export of goods is allowed by the respective collectors of customs against submission of indemnity bond or bank guarantee to the satisfaction of customs authorities.

    The ministry issued Import Policy Order, 2020 through SRO 902(I)/2020 dated September 25, 2020 and explained the temporary import as: temporary import-cum-export of goods in respect of the following shall be allowed by the respective Collectors of Customs against submission of indemnity bond or bank guarantee to the satisfaction of custom authorities to ensure re-export of the same within the specified period, namely: –

    (a) construction companies or firms or oil and gas companies, oil exploration and production companies, mining companies, their authorized or approved contractors, sub-contractors and service companies, and refineries shall be allowed to import all plant, machinery and equipment including specialized machinery whether new or used except second-hand or used passenger vehicles, trucks, buses and static road rollers of 10-12 tons capacity, 55HP. Certification of the Chief Executive of a company of the respective sector-endorsing requirement of the contractor, sub-contractor or service companies shall be required:

    Provided that permanent retention of all permissible categories of machinery or equipment imported on temporary basis by construction companies shall be allowed by the Federal Board of Revenue subject to payment of all duties and taxes to be assessed by the Customs under relevant laws;

    (b) airlines and shipping lines shall be allowed to import items on import cum export basis except those mentioned in Appendix-A, B and C, unless specifically allowed under this Order;

    (c) any goods manifested for a country outside Pakistan, which are bonded in Pakistan for re-export to that country;

    (d) any good imported and bonded for re-export as ship stores to a country outside Pakistan without requirement of furnishing indemnity bond or bank guarantee;

    (e) exhibition materials for fairs and exhibitions officially organized by the Government or Federation of Pakistan Chambers of Commerce and Industry or Chambers of Commerce and Industry shall be allowed to import items except mentioned in Appendix-A, B and C except where specifically allowed under this Order. However, giveaways, sale on payment of leviable duties, donations and wastages etc., shall be allowed:

    Provided that all-Pakistan based associations and individual companies shall also be allowed to import exhibition materials for fairs and exhibitions except those mentioned in Appendix-A, B and C subject to endorsement by Trade Development Authority of Pakistan;

    (f) any goods except those specified in Appendix A, B and C for demonstration, display, test or trial purpose for a limited period;

    (g) second-hand tools and professional equipment imported by scientists, information technology experts, doctors, technicians, engineers etc., either imported in their own name or in the name of the company in Pakistan for which these are imported;

    (h) excavation equipment and materials imported by foreign archeological missions;

    (i) scientific and educational equipment imported for scientific educational, or cultural seminars in Pakistan on the recommendation of the concerned Ministry;

    (j) equipment and materials imported by Pakistani as well as foreign nationals such as journalists, press photographers, members of television teams, broadcasting units, film companies, theater and circus companies, for their professional requirement, subject to endorsement on their passports;

    (k) shipping containers for transportation of cargo;

    (l) trucks and cargo transport vehicles registered in foreign countries carrying imported cargo through border customs stations, provided that there is a bilateral or multilateral agreement on reciprocity basis between Pakistan and the foreign country to which those vehicles belong;

    (m) import of engineering goods, carpets, sports goods, surgical instruments etc., into Pakistan shall be allowed to the existing industry for the purpose of repairing in Pakistan and subsequent re-export, subject to submission of indemnity bond or bank guarantee to the customs authorities to ensure re-export of the same within the specified period;

    (n) Pakistani exporters are allowed to re-import exported goods for the purpose of removing defects by way of repairing during the warranty period provided in the sales contracts against submission of indemnity bond to the satisfaction of the concerned Collector of Customs;

    (o) import of goods including means of transport, excluding those mentioned in Appendix-A, B and C, shall be allowed under ATA Carnet (Istanbul Convention 1990) upon furnishing of temporary admission papers (Carnet etc.) as due security;

    (p) import of goods including means of transport excluding those mentioned in Appendix-A, B and C, shall be allowed under TIR Convention subject to fulfillment of all prescribed conditions;

    (q) mountaineering expeditions shall be allowed to import their equipment and materials on import-cum-export basis. In case, the equipment and material are not re-exported, they may donate such equipment and material to local mountaineering clubs and produce a certificate to the Customs from a mountaineering club to the effect that the equipment and material imported on import-cum-export basis has been donated to that club; and

    (r) temporary import-cum-export of arms and ammunition by foreign hunters shall be allowed subject to NOC from the Ministry of Interior.

  • Airlines’ pilots get Rs430 million tax concession on allowances

    Airlines’ pilots get Rs430 million tax concession on allowances

    Pilots of Pakistani airlines collectively availed tax concessions amounting to Rs430 million during the tax year 2020 on allowances received from their respective employers, according to official data made available to PkRevenue.com.

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