Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SBP to review existing policy rate of 7 percent on Sep 21

    SBP to review existing policy rate of 7 percent on Sep 21

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday said it will review existing key policy rate at 7 percent on Monday, September 21, 2020 for next two months.

    In its monetary policy announcement on June 25, 2020 the SBP cut the key policy rate to 7 percent. The decision came after the monetary policy committee viewed that the inflation outlook had improved further, while the domestic economic slowdown continued and downside risks had grown.

    In the wake of coronavirus pandemic the central bank significantly reduced the discount rate. Through policy decision on June 25, 2020 the SBP brought down the cumulative policy rate since mid-March 2020 to 625 basis points.

    Due to frequent changes in policy rate the regular meeting of the monetary policy committee was not held that was scheduled in July 2020.

    The SBP said that the given the number of MPC meetings that had taken place in recent months, and actions taken in those meetings, the MPC had not consider it necessary to hold the regular meeting of July 2020.

    “The next regular meeting of the MPC will now be held in September 2020. The MPC continues to observe economic conditions and stands ready to take whatever further actions may become necessary in response to any adverse impact on the economy because of the pandemic or any other factor,” the SBP said in its press statement issued on July 24, 2020.

  • Bank deposits of salaried persons surge by 35 percent to Rs2.252 trillion

    Bank deposits of salaried persons surge by 35 percent to Rs2.252 trillion

    KARACHI: The deposits of salaried persons in the domestic banking system surged by 35 percent in August 2020 as financial institutions provided safe avenue for investment.

    The banking deposits of salaried persons increased to Rs2.252 trillion by end of August 2020 as compared with Rs1.671 trillion in the same month of the last year, according to data released by State Bank of Pakistan (SBP) on Tuesday.

    Banking experts said that in the past the interest rates were very high which enabled banks to offer attractive rate of return to depositors.

    The central bank kept the policy at higher rate of 13.25 percent till March 2020. However, in the wake of economic slowdown after COVID-19, the SBP significantly reduced the policy rate starting from March 2020.

    In the monetary policy announcement on June 25, 2020, the SBP brought down the key policy rate to 7 percent, which is still applicable to date.

    The decision brought the cumulative reduction in the policy rate since mid-March to 625 basis points, the SBP said in its policy statement.

    It is important to note that the deposits of the banking system reached to a record high of Rs16.327 billion by August 2020.

    The categorization of deposits showed personal deposits registered 18.53 percent growth to Rs8.051 trillion in August 2020 as compared with Rs6.792 trillion in the same month of the last year.

    The deposits of salaried persons are part of the category of personal deposits.

    The other components of this category i.e. deposits of self employed registered 12 percent increase to Rs3.376 trillion in August 2020 as compared with Rs3.012 trillion in the same month of the last year.

    Meanwhile, the deposits of other personal accounts registered 15 percent growth to Rs2.423 billion as compared with Rs2.108 billion in the same month of the last year.

  • Tax registration procedure for filing annual return of income

    Tax registration procedure for filing annual return of income

    ISLAMABAD: Federal Board of Revenue (FBR) has issued registration procedure for income tax in order to file income tax return.

    The filing of income tax return for tax year 2020 is due on September 30, 2020 in case of taxpayers such as salaried persons, business individuals, Association of Persons (AOPs), taxpayers falling under final tax regime and corporate entities having special financial year.

    Following is the procedure for registration of income tax:

    Register for Income Tax

    The first step of filing your Income Tax Return is to register yourself with Federal Board of Revenue (FBR).

    For Income Tax Registration Individual can register online through Iris Portal

    Whereas, the principal officer of AOP and Company needs to visit Regional Tax Office (RTO)

    Taxpayer Registration basics

    Some important facts about Registration

    An individual, a company and an association of persons (AOP) or foreign national shall be treated as registered, when they are e-enrolled on the Iris portal.

    E-Enrollment with FBR provides you with a National Tax Number (NTN) or Registration Number and password.

    In case of individuals, 13 digits Computerized National Identity Card (CNIC) will be used as NTN or Registration Number.

    NTN or Registration Number for AOP and Company is the 7 digits NTN received after e-enrollment.

    These credentials allow access to Iris portal, the online Income Tax system, which is only way through which online Income Tax Return can be filed.

    Requirements before Registration

    An individual needs to ensure that the following information is available before starting e-enrollment.

    Requirements of e-enrollment for an individual are as follows:

    –CNIC/NICOP/Passport number

    –Cell phone number in use

    –Active e-mail address

    –Nationality

    –Residential address

    –Accounting period

    –In case of business income

    –business name

    –business address

    –Principal business activity

    –Name and NTN of employer in case of salary income

    –Address of property in case of property income

    Principal Officer of Company and AOP needs to ensure that the following information is available before starting e-enrollment

    Following particulars are required for registration:

    –Name of company or AOP

    –Business name

    –Business address

    –Accounting period

    –Business phone number

    –E-mail address

    –Cell phone number of principal officer of the company or AOP

    –Principal business activity

    –Address of industrial establishment or principal place of business

    –Company type, like public limited, private limited, unit trust, trust, NGO, society, small company, modaraba or any other

    –Date of registration

    –Incorporation certificate by Securities and Exchange Commission of Pakistan (SECP) in case of company

    –Registration certificate and partnership deed in case of registered firm

    –Partnership deed in case firm is not registered

    –Trust deed in case of trust

    –Registration certificate in case of society

    –Name of representative with his CNIC or NTN

    –Following particulars of every director and major shareholder having 10 percent or more shares in case of company or partners in case of an AOP, namely:-

    —-Name

    —-CNIC/NTN/Passport and

    —-Share %

    Requirements for Registration of Non-Resident Company having permanent establishment in Pakistan shall furnish the following particulars:

    –Name of company

    –Business address

    –Accounting period

    –Phone number of business

    –Principal business activity

    –Address of principal place of business

    –Registration number and date of the branch with the Securities and Exchange Commission of Pakistan (SECP)

    –Name and address of principal officer or authorized representative of the company

    –Authority letter for appointment of principal officer or authorized representative of the company

    –Cell phone number of principal officer or authorized representative of the company and

    –Email address of principal officer or authorized representative of the company

    Non-Resident Company not having permanent establishment in Pakistan shall furnish the following particulars:

    –Name of company

    –Business address in the foreign country

    –Name and nationality of directors or trustees of the company

    –Accounting period

    –Name and address of authorized representative of the company

    –Authority letter for appointment of authorized representative of the company

    –Cell phone number of authorized representative of the company

    –Email address of authorized representative of the company

    –Principal business activity and

    –Tax Registration or incorporation document from concerned regulatory authorities of the foreign country

    Registration process

    Online Registration

    Online registration is available only for:

    –Individual and not for Association of Person or Company;

    Before starting online registration, the Taxpayer must have:

    –Read User Guide;

    –A computer, scanner and internet connection;

    –A cell phone with SIM registered against their own CNIC;

    –A personal email address belonging to them;

    –Scanned pdf files of:

    —-Certificate of maintenance of personal bank account in his own name;

    —-Evidence of tenancy / ownership of business premises, if having a business;

    —-Paid utility bill of business premises not older than 3 months, if having a business.

    –Online registration is available at Iris

    Registration at Facilitation Counters of Tax Houses

    Registration at Facilitation Counters of Tax Houses is available for all:

    –Individual, Association of Person and Company;

    –Income Tax and Sales Tax;

    For Registration of an Individual, the Individual must:

    –Personally go to any Facilitation Counter of any Tax House;

    –Take the following documents with him:

    —-Original CNIC;

    —-Cell phone with SIM registered against his own CNIC;

    —-Personal Email address belonging to him;

    —-Original certificate of maintenance of personal bank account in his own name;

    —-Original evidence of tenancy / ownership of business premises, if having a business;

    —-Original paid utility bill of business premises not older than 3 months, if having a business.

    For Registration of an AOP, anyone of the Members / Partners must:

    –Personally go to any Facilitation Counter of any Tax House

    –Take the following documents with him:

    —-Original partnership deed, in case of Firm;

    —-Original registration certificate from Registrar of Firms, in case of Firm.

    —-CNICs of all Members / Partners;

    —-Original letter on letterhead of the AOP signed by all Members / Partners, authorizing anyone of the Members / Partners for Income / Sales Tax Registration;

    —-Cell phone with SIM registered against his own CNIC but not already registered with the FBR;

    —-Email address belonging to the AOP;

    —-Original certificate of maintenance of bank account in AOP’s name;

    —-Original evidence of tenancy / ownership of business premises, if having a business;

    —-Original paid utility bill of business premises not older than 3 months, if having a business.

    For Registration of a Company, the Principal Officer must:

    –Personally go to any Facilitation Counter of any Tax House

    –Take the following document with him:

    —-Incorporation Certificate of the Company;

    —-CNICs of all Directors;

    —-Original letter on letterhead of the company signed by all Directors, verifying the Principal Officer and authorizing him for Income Tax / Sales Tax Registration;

    —-Cell phone with SIM registered against his own CNIC but not already registered with the FBR;

    —-Email address belonging to the Company;

    —-Original certificate of maintenance of bank account in Company’s name;

    —-Original evidence of tenancy / ownership of business premises, if having a business;

    —-Original paid utility bill of business premises not older than 3 months, if having a business.

    Modification of Income Tax Registration

    Income Tax Registration of a person can be modified after discovering any change or omission in any information, particulars, data or documents associated with the registration of the person.

    Person would have to file a modification form of registration in Iris to change the relevant particulars.

    The Commissioner will grant or refuse the requested modification of the person after examining the modification form of registration and making any inquiry deemed necessary.

    Person can within thirty (30) days of the decision regarding modification file a representation before the Chief Commissioner.

    Chief Commissioner will decide on the merits of the representation filed.

    Cancellation of Income Tax Registration

    Commissioner may by order in writing cancel the Income Tax Registration of a taxpayer after ascertaining that there is no outstanding liability against the taxpayer; and all the relevant information, particulars, data or documents associated with the Registration of the taxpayer warrant such a cancellation.

    Change in particulars of Registration

    In case there is a change in the name address, or other particulars as stated in the registration certificate, the registered person shall notify the change in the prescribed form to the RTO within fourteen days of such change.

    The change in the business category shall be allowed after RTO has verified the manufacturing facility and confirmed the status as industrial consumer of the electricity and gas distribution companies.

  • Cabinet allows export of all PPE items

    Cabinet allows export of all PPE items

    ISLAMABAD: The federal cabinet in its meeting held on Tuesday allowed export of all Personal Protective Equipment (PPE) items. The cabinet approved to lift the ban on export of Tyvek Suits and the anti-malarial drugs, including Chloroquine and Hydroxychloroquine.

    (more…)
  • Stock market falls by 185 points on profit booking

    Stock market falls by 185 points on profit booking

    KARACHI: The stock market fell by 185 points on Tuesday as investors opted for profit booking during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,346 points as against 42,531 points showing a decline of 185 points.

    Analysts at Arif Habib Limited said that the market opened on a positive today, maintained positive momentum during the session but selling pressure in the end brought the index down.

    Profit booking continues from past sessions, however, Investors have generally been switching positions from stocks that have nearly doubled from their recent bottoms (Cement) into Stocks that have had muted performance (Banks & O&GMCs).

    ENGRO saw selling pressure due to it being Ex-dividend, however, prospects of increase in price of fertilizer kept the buying interest alive. Cement sector stocks performed well during the session on the back of increase in cement prices in North region, however, profit booking brought the prices down again.

    O&GMCs topped the volumes with 74.2 million shares, followed by Cement (74.1 million) and Power (63.4 million). Among scrips, HASCOL led the volumes with 63.7 million shares, followed by KEL (54 million) and BYCO (42.6 million).

    Sectors contributing to the performance include Banks (-66 points), Fertilizer (-50 points), Inv Banks (-25 points), Technology (-25 points) and Insurance (-16 points).

    Volumes increased from 509.5 million shares to 662.8 million shares (+30 percent DoD). Average traded value also increased by 28 percent to reach US$ 111.9 million as against US$ 87.5 million.

    Stocks that contributed significantly to the volumes include HASCOL, KEL, BYCO, BOP and UNITY, which formed 36 percent of total volumes.

    Stocks that contributed positively to the index include MTL (+13 points), NESTLE (+11 points), MLCF (+10 points), THALL (+7 points) and EPCL (+6 points). Stocks that contributed negatively include ENGRO (-39 points), DAWH (-22 points), UBL (-21 points), HBL (-20 points) and TRG (-18 points).

  • Rupee slips by 10 paisas against dollar

    Rupee slips by 10 paisas against dollar

    KARACHI: The Pak Rupee slipped by 10 paisas against dollar on Tuesday owing to higher demand for import and corporate payments.

    The rupee ended Rs166.27 to the dollar from previous day’s closing of Rs166.17 in interbank foreign exchange market.

    Currency experts said that the local unit was remained under pressure due to higher import and corporate payment.

    However, they said that the recent announcement of the federal government to launch Naya Pakistan Certificates with attractive rate of return in both rupee denomination and dollar denomination bills, would help the local currency to gain value in coming days.

  • Customs announces auction of confiscated vehicles on September 16

    Customs announces auction of confiscated vehicles on September 16

    ISLAMABAD: Pakistan Customs has announced an auction of confiscated vehicles which will be held on September 16, 2020 at Model Customs Collectorate (E&C) State Warehouse Shahnoor Studio Multan Road, Lahore.

    Following vehicles will be presented for the auction:

    01. Honda Civic Car (Re-Born), Model 2005, Reg. No. ANW-069, Chassis No. FDI-1000633

    02. Toyota Vitz Car, Model 2006, Reg. No. LEB-13-4399, Chassis No. KSP90-5065990

    03. Honda Civic Car Hybrid, Model 2006, Reg. No. LEB-514, Chassis No. FD3-1002703

    04. Toyota Premio Car, Model 2003, Reg. No. LEF-13-9342, Chassis No. ZZT240-5011288

    05. Toyota Land Cruiser Prado, Model 1997, Reg. No. LEB-14-2338, Chassis No. JTIIIVJ9500032929

    06. Honda Civic Car, Model 2013, Reg. No. LEH-13-2311, Chassis No. JHMGT3620652047617

    07. Honda Civic Hybrid Car, Model 2006, Reg. No. AZU-482, Chassis No. FD3-1005883

    08. Toyota Passo Car, Model 2005, Reg. No. AVK-092, Chassis No. KGC-10-0097348

    09. Toyota Crown Car (Royal Saloon), Model 2004, Reg. No. BED-831, Chassis No. GRD182-5020578

    10. Toyota Coaster, Model 1996, Reg. No. EA-4446, Chassis No. BB50-6000009

  • FBR, Punjab Excise, Taxation sign exchange of information agreement

    FBR, Punjab Excise, Taxation sign exchange of information agreement

    ISLAMABAD: Federal Board of Revenue (FBR) and Punjab Excise, Taxation and Narcotics Control Department have signed an agreement for exchange of information of respective registered persons with the respective authorities.

    The signing ceremony was held on Monday at the office of Punjab Excise, Taxation and Narcotics Control Department in Lahore.

    The signing ceremony was witnessed by Mumtaz Ahmed, Punjab Minister for Excise and Narcotics Control; Asim Ahmed, Member IT, FBR; Wajihullah Kundi, Secretary Excise and Taxation; Zainul Abideen, Chairman, Punjab Revenue Authority; and Masood ul Haq, Director General, Excise and Taxation.

    Under the agreement the FBR will get information of persons who get registered their motor vehicles and immovable properties with the provincial authorities. Further, the FBR will also get information of professional working in the province.

    Likewise, Punjab Excise Department will get information of guest houses, cotton ginning and other registered professionals.

    The exchange of information will be kept confidential. The agreement was signed with an aim to identify potential taxpayers and plug revenue leakages.

    Both the authorities agreed to cooperate with each other in revenue collection. Further, it was agreed that secure web services will be used for the purpose in order to reduce human intervention.

    The FBR has shown interest to cooperate with other authorities in order to broaden the tax base.

  • SBP allows opening of selected bank branches on Saturdays

    SBP allows opening of selected bank branches on Saturdays

    KARACHI: State Bank of Pakistan (SBP) on Monday allowed banks to open their selected branches on Saturdays with ensuring implementation of SOPs to prevent coronavirus.

    The SBP said that through a notification on October 14, 2011 under which banks / microfinance banks were permitted to open their selected branches at various business centers / commercial hubs / ports etc. on Saturdays.

    However, subsequent to outbreak of COVID-19 pandemic, banks / MFBs through BPRD Circular Letter No. 8 dated March 23, 2020 were advised to open their branches / work places with bare minimum staff for reduced timings from Monday to Friday until further instructions.

    Since the banks / MFBs have been reverted to normal office and business hours in terms of instructions contained in BPRD Circular Letter No. 37 of July 31, 2020, hence it has been decided that banks / MFBs may open selected branches on Saturdays in line with instructions contained in BPRD Circular No. 11 of 2011 subject to implementation of SOPs / guidelines issued by the Federal & Provincial Governments, from time to time, the SBP added.

  • Foreign investors express concern over high turnover tax

    Foreign investors express concern over high turnover tax

    KARACHI: Foreign investors have expressed concerns over high rate of turnover tax rate, especially for those sectors where margins are very low.

    Overseas Investors’ Chamber of Commerce and Industry (OICCI) expressed this concern at an interactive session with Dr. Abdul Hafeez Sheikh held on September 12, 2020, a statement said on Monday.

    The statement said that the foreign investors expressed concern on the continuation of the high rate of turnover tax especially for high turnover but low margin sectors like petroleum and chemical businesses.

    OICCI members also vented concern on the recent incident on the Lahore-Sialkot ring road which has damaged the morale of the stakeholders, who were otherwise satisfied with the highly improved security environment in Pakistan.

    OICCI President Haroon Rashid, welcomed Dr Abdul Hafeez Sheikh and briefed him about the critical role of OICCI and its members in the economy of Pakistan and shared that delays in tax refunds and some other issues are creating hurdles in bringing Foreign Direct Investment (FDI) in the country, as well as not being in sync with the government’s agenda of Ease of Doing Business (EODB).

    The participants representing the major foreign investors operating in the country appreciated the GOP’s effort in successfully overcoming the Covid 19 challenge to the economy and taking appropriate measures for the health and safety of the people of Pakistan.

    OICCI members complimented the Advisor on Finance for the constructive approach adopted during the 2020-21 Budgeting process where the tariff rationalization of over 1600 items, together with rationalization of withholding taxes at import stage and many other measures contributing towards Ease of Doing Business.

    OICCI also appreciated the recent launch of Roshan Digital Account for overseas Pakistanis as a step in the right direction.

    Haroon Rasheed recommended that the government should take a collective view of the measures to encourage foreign investment in Pakistan, including appointing a focal ministry for streamlining operating issues of foreign investors.

    OICCI strongly recommended that the government should ensure that incentives once given to foreign investors, for example vide Section 65 of the IT Ordinance 2001 in respect of new investments, should not be withdrawn while the respective projects are in implementation phase. OICCI also requested for orderly and prompt settlement of long pending tax refunds and circular debt.

    OICCI members were optimistic that the country can attract large FDI by ensuring predictable, consistent and transparent policy framework and its implementation.

    The participants also sought Finance Advisor review of the recent announcement that investment in the National Saving scheme will not be available to retirement funds after 2022.

    On questions from the audience, Finance Advisor assured that the GIDC issue will be managed amicably in accordance with the Supreme Court decision and that the FBR will be more proactive and will regularly engage with key stakeholders like OICCI members in resolving all legitimate issues especially on tax refunds.

    At the meeting Advisor to PM on Finance Dr Abdul Hafeez Sheikh gave a comprehensive overview of the challenges faced by the economy in the past two years and how the GOP has successfully managed to stabilize the economy which is now on a recovery path.

    Dr Hafeez Shaikh added that the growth trend in some industries like cement, automobile and fertilizer and rapid growth noticed at PSX are very encouraging and should give confidence to investors.