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Author: Mrs. Anjum Shahnawaz

  • Stock market ends unchanged amid range bound trading

    Stock market ends unchanged amid range bound trading

    KARACHI: The stock market ended unchanged on Monday as the market traded witnessed range bound activity.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed closed at 42,531 points same as of Friday.

    Analysts at Arif Habib Limited said that the market traded range bound between -163 points and +190 points.

    Selling pressure was observed in Cement, E&P, Steel, Refinery sectors, whereas Banks and OMCs (PSO, HASCOL) saw gradual accumulation causing the Index to post gains during the trading session.

    Volumes remained relatively low, considering the recent spate of 700 million volumes that the bourse witnessed previous week and so. O&GMCs posted highest trading volumes of 80 million shares, followed by Banks (61.3 million) and Food (54.7 million).

    Among scrips, HASCOL topped 67.1 million shares, followed by PIBTL (42.9 million) and FFL (29.8 million).

    Sectors contributing to the performance include Banks (+19 points), O&GMCs (+17 points), Power (+12 points), E&P (-14 points) and Technology (-14 points).

    Volumes declined further from 526.2 million shares to 509.5 million shares (-3 percent DoD). Average traded value also declined by 17 percent to reach US$ 87.5 million as against US$ 105.8 million.

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

    Stocks that contributed positively to the index include PSO (+17 points), HBL (+17 points), HUBC (+17 points), MCB (+15 points) and HASCOL (+12 points). Stocks that contributed negatively include PPL (-23 points), DGKC (-16 points), KEL (-9 points), SYS (-8 points) and SNGP (-8 points).

  • Rupee eases by 20 paisas on import payment

    Rupee eases by 20 paisas on import payment

    KARACHI: The Pak Rupee fell by 20 paisas against the dollar on Monday owing to higher demand of the foreign currency for import and corporate payments.

    The rupee ended Rs166.17 to the dollar from last Friday’s closing of Rs165.97 in interbank foreign exchange market.

    Currency experts said that the market was opened after weekly holidays and the local unit was under pressure due to demand for import and corporate payments.

    They however said that improved inflows of remittances would help the local unit to recover in coming days.

    The inflow of workers’ remittances sharply increased by 31 percent during first two months of the current fiscal year owing to initiatives of the central bank.

    The inflow of remittances surged to $4.86 billion during July – August 2020 as compared with $3.71 billion during the corresponding period of the last fiscal year.

    The inflows of remittances also registered an increase of 25 percent to $2.1 billion in August 2020 as compared with $1.68 billion in the same month of the last year.

  • Workers’ remittances surge by 31pc in July – August

    Workers’ remittances surge by 31pc in July – August

    KARACHI: Workers’ remittances to Pakistan have experienced a significant boost, surging by 31% during the first two months of the current fiscal year. This sharp increase is attributed to initiatives by the State Bank of Pakistan (SBP), which have facilitated the inflow of remittances from Pakistani workers abroad.

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  • Duty free mobile phone not allowed under personal baggage

    Duty free mobile phone not allowed under personal baggage

    KARACHI: Federal Board of Revenue (FBR) has said that not a single mobile phone is allowed duty free brought into Pakistan under personal baggage.

    Recently Baggage Rules have been amended vide Finance Act, 2019 whereby facility for bringing duty/taxes free mobile set has been withdrawn from July 01. 2019. Hence duty and taxes will be paid on every mobile phone.

    The FBR further said: “No exemption of duty and taxes is available on any mobile even if the passenger is bringing only one mobile.”

    The FBR responded to a query “Do I have to pay duty/taxes on a mobile phone which I have been using in Pakistan after returning from abroad?”

    The FBR said that if local SIM is used in the mobile then it will require registering the IMEI of the mobile with PTA after payment of duty and taxes.

    If the same is not registered with the PTA within sixty (60) days of the insertion of local SIM in the mobile then the mobile set will be blocked and can only be opened after payment of duty/taxes and fine/penalty.

    The FBR explained in case a passenger brings a mobile phone but failed to declare the device at the time of arrival. The

    The passenger can approach the nearest customs office for registration of the mobile device.

  • Return filing facilitation: FBR issues procedure to reset, change password on IRIS portal

    Return filing facilitation: FBR issues procedure to reset, change password on IRIS portal

    KARACHI: Federal Board of Revenue (FBR) has issued procedure to reset and change password on IRIS portal in order to facilitate taxpayers in filing their income tax returns for tax year 2020.

    The FBR issued the procedure to facilitate taxpayers as many persons failed to access their accounts on IRIS after a lapse of time because of forgetting the password.

    To re-set a new Password, follow these steps:

    — Access Iris log-in Screen at the following URL: https://iris.fbr.gov.pk/infosys/public/txplogin.xhtml

    — Click “Forgot Password” Link under the log-in Dialog

    — “Forgot Password” Dialog will open

    — Enter data in all Fields

    — Click “Submit” Button

    — Click on the Link sent at the given email

    — Enter data in the Dialog

    — Click “Submit” Button

    To change Password, follow these steps:

    — Login to Iris

    — Click “Change Password” Link on top right of the screen

    — “Change Password” Dialog will open

    — Enter current Password

    — Enter new Passwords

    — Confirm new Password

    — Click “OK” Button

    To change PIN, follow these steps:

    — Login to Iris

    — Click “Change PIN” Link on top right of the screen

    — “Change PIN” Dialog will open

    — Enter new PIN

    — Confirm new PIN

    — Click “OK” Button

    A taxpayer gets Password and PIN when he completes first part of the Registration process. However, he cannot start any task unless he completes second part of the Registration process by submitting the Form of Registration after completing data entry and attaching the required documents.

    To e-enroll yourself, follow these steps:

    — Access Iris log-in Screen at the following URL:

    — Click “E-Enrollment for Registered Person” Link under the log-in Dialog

    — “E-Enrollment” Dialog will open

    — Enter data in all Fields

    — Click “Submit” Button

    — Enter verification code received on email in the relevant Field

    — Enter verification code received on Cell No. in the relevant Field

    — Click “Submit” Button

    — You will receive Password and PIN on your email and Cell No.

  • Salary codes explained for tax returns

    Salary codes explained for tax returns

    ISLAMABAD: Federal Board of Revenue (FBR) has explained codes to be used for entering the tax deducted at source under the head of salary.

    An employer deducts income tax from salary of taxable income of an employee under section 149 of Income Tax Ordinance, 2001.

    Many salaried persons are confused at the time of filing annual income tax return regarding entering the adjustable amount that was deducted from salary at source.

    The FBR said that tax deducted at source from salary is to be entered under ‘adjustable tax regime’ against any of the following relevant code:

    01. 6402001 for salary of federal government employees under section 149

    02. 6402002 for salary of provincial government employees under section 149

    03. 6402003 for salary of corporate sector employees under section 149

    04. 6402004 for salary of other employees under section 149.

    The FBR further explained that medical allowance is to be entered in second column against code 1049 under salary.

    The FBR also explained regarding declaration of pension received from ex-employer. The tax body said that pension is to be entered in second column against code 1099 under the head of salary.

  • Resident shipping companies granted final tax regime

    Resident shipping companies granted final tax regime

    ISLAMABAD: The income tax law has allowed final tax regime for Pakistani resident shipping company, which is registered after November 15, 2019.

    According to explanation to changes made to Income Tax Ordinance, 2001 through Finance Act, 2020, the FBR said that clause (c) has been added to sub-section (1) of section 7A to provide for imposition of final tax of an amount equivalent to seventy-five US cents per ton of gross registered tonnage per annum for a Pakistani resident ship owning company registered with Securities and Exchange Commissioner of Pakistan (SECP) after November 15, 2019 and having its own sea worthy vessel registered under the Pakistan flag.

    The FBR said that final tax regime for taxing gross amount received or receivable by non-resident shipping companies at fixed tax rate under section 7 did not cover shipping income of a resident person.

    A new section 7A was, therefore, inserted through Finance Act, 2015, which provides for taxing shipping of residents under final tax regime.

    Further, dates of applicability of section 7 and clause (98) of Part-IV of Second Schedule which exempts import of ships and other floating crafts including tugs, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistani entity and flying Pakistani flag from applicability of provision of section 148, have been extended to 30-06-2030.

  • Rate of tax on foreign payment through debt, credit cards

    Rate of tax on foreign payment through debt, credit cards

    ISLAMABAD: Federal Board of Revenue (FBR) has notified rate of advance tax on amount remitted abroad through credit or debit cards.

    The FBR issued withholding tax card for tax year 2020-2021 (updated till June 30, 2020) after incorporating amendments made to Income Tax Ordinance, 2001 through Finance Act, 2020.

    The FBR collects advance tax under Section 236Y from persons remit amounts abroad.

    Every banking company shall collect advance tax at the rate of one percent from persons who has completed a transaction of credit card or debit card or pre-paid card, with a person outside Pakistan at the time of transfer of any sum remitted outside Pakistan through a transaction of a credit card of debit card or pre-paid card.

    The tax rate shall be two percent for persons not appearing on the Active Taxpayers List (ATL).

    The tax shall be adjustable against the total liability of a person.

  • FBR initiates framing ‘concealment of assets’ cases against defaulting amnesty declarants

    FBR initiates framing ‘concealment of assets’ cases against defaulting amnesty declarants

    KARACHI: Federal Board of Revenue (FBR) has initiated the process of framing cases under concealment of assets against persons who declared under an amnesty scheme but failed to pay taxes within the given timeline.

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  • Weekly Review: market likely to stay in green

    Weekly Review: market likely to stay in green

    KARACHI: The stock market likely to trade in green zone during next week due to higher interest of investors and improved economic indicators.

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