Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR notifies rules to launch authorized economic operator program

    FBR notifies rules to launch authorized economic operator program

    ISLAMABAD: Federal Board of Revenue (FBR) has notified rules to launch Authorized Economic Operator (AEO) program to improve trade and business environment in the country.

    The AEO was launched by inserting Section 212A was inserted in the Customs Act, 1969 through the Finance Act, 2018.

    The FBR now issued AEO rules vide SRO 798 (I) /2020 dated August 28, 2020.

    FBR has also constituted AEO Approval Committee in this regard which is finalizing the request of applicants. Software for business process and WeBOC modules for AEO programme has already been developed and is ready for launch at present.

    The FBR intend to start Pilot project of the AEO programme at MCC Port Qasim (Exports) Karachi in October, 2020, which will be later on extended to import sector as well.

    The World Customs Organization’s (WCO) Authorized Economic Operator (AEO) Programme is one of the pillars of WCO’s Framework of Standards to secure and facilitate trade (SAFE).

    The programme is widely acknowledged as a key driver for a solid customs-business partnership; secure, transparent and predictable trading environment; and in a wider context of economic growth.

    Accredited AEOs can enjoy several trade facilitation benefits including expedited processing and release of shipments, mutual recognition of AEO status by customs administrations, financial guarantee waivers, and self assessment.

    AEOs include inter alia manufacturers, importers, brokers, carriers, consolidators, intermediaries, exporters, ports, airports, terminal operators, integrated operators, warehouses and distributors.

    The government has a Category ‘C’ commitment to provide additional trade facilitation measures related to import, export or transit formalities and procedures, to authorized operators. Pakistan currently ranked 108 out of 190 economies, based on World Bank’s Ease of Doing Business score, making it a less attractive country for potential investors.

  • Headline inflation increases by 8.2pc in August

    Headline inflation increases by 8.2pc in August

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) increased by 8.2 percent on Year on Year (YoY) basis in August 2020 as compared to an increase in 9.3 percent in the previous month, Pakistan Bureau of Statistics (PBS) said on Tuesday.

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  • Stock market gains 266 points on improved trading in cement, chemical sectors

    Stock market gains 266 points on improved trading in cement, chemical sectors

    KARACHI: Stock market gained 266 points on Tuesday owing to improved trading activities in cement and chemical sectors.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,377 points as against 41,111 points showing an increase of 266 points.

    Analysts at Arif Habib Limited said that the market continued the bull run by adding another 290 points during the session and closed +266 points.

    Cement sector contributed the most on the index, whereby LUCK, PIOC and MLCF performed well.

    Chemical sector also saw improved performance with SPL, DOL hitting upper circuits and similar performance in LOTCHEM and EPCL.

    PSO declared financial results at the opening bell with a loss in the bottom line, however, the stock sustained selling pressure with PSO reverting to its opening price by the end of session.

    Vanaspati sector topped the volumes with 135.9 million shares, followed by Cement (113.8 million) and Cable (60.5 million). Among scrips, UNITYR2 realized 90.3 million shares, followed by PAEL (47.4 million) and UNITY (45.6 million).

    Sectors contributing to the performance include Cement (+52 points), Power (+46 points), Technology (+45 points), Chemical (+38 points) and Textile (+26 points).

    Volumes increased from 451.7 million shares to 759.3 million shares (+68 percent DoD). Average traded value also increased by 33 percent to reach US$ 130.6 million as against US$ 98 million.

    Stocks that contributed significantly to the volumes include UNITYR2, PAEL, UNITY, HASCOL and POWER1, which formed 36 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+39 points), COLG (+26 points), MARI (+18 points), PKGS (+17 points) and KAPCO (+17 points). Stocks that contributed negatively include OGDC (-29 points), HBL (-29 points), PAKT (-22 points), PPL (-13 points) and UBL (-8 points).

  • PSO declares annual loss of Rs6.46 billion

    PSO declares annual loss of Rs6.46 billion

    KARACHI: Pakistan State Oil Company Limited (PSO) on Tuesday declared Rs6.46 billion loss for the year ended June 30, 2020, according to financial results of the company submitted to Pakistan Stock Exchange (PSX).

    The company posted Rs10.56 billion after tax profit for the year ended June 30, 2019.

    The company recorded sales of Rs1,108 billion for the year under review as compared with sales of Rs1,154.3 billion in the preceding year.

    The gross profit of the company fell to Rs12.22 billion for the year ended June 30, 2020 as compared with the profit of Rs36 billion in the preceding year.

    The operating costs of the company fell to Rs14.68 billion for the year ended June 30, 2020 as compared with Rs17.1 billion in the preceding year.

    The PSO declared Rs13.77 loss per share for the year under review as compared with Rs22.55 earning per share during the preceding year.

  • FBR revenue collection growth flat at Rs593bn in first two months of FY21

    FBR revenue collection growth flat at Rs593bn in first two months of FY21

    ISLAMABAD: The growth in revenue collection by Federal Board of Revenue (FBR) was remained flat at Rs593 billion during July – August of current fiscal year FY21 as compared with Rs582 billion in the corresponding month of the last fiscal year.

    However, the FBR on Monday said that it had surpassed the revenue collection target of Rs551 billion by Rs42 billion during the months under review.

    The FBR said that to redress the hardships of the business community caused by Covid-19, refunds to the tune of Rs30.6 billion have been disbursed collectively in the first two months of current fiscal year, as compared to refunds of Rs11 billion during first two months of the last fiscal year.

    Sales Tax refunds are being issued under centralized and automated system called FASTER which is clearing refunds to exporters within 72 hours for the first time as committed by the government.

    FBR is also engaging with trade and industry to mitigate their genuine grievances. FBR is proactively reaching out to Trade and Industry and resolving their issues.

    FBR has also launched an unprecedented crackdown on corruption dismissing and suspending 76 officers and officials since July 2020.

    In post COVID-19 pandemic scenario, the economic activities are now being revived through multiple economic stimuli and reliefs granted in the budget FY-2020-21.

    Hectic efforts were put up by Customs field formations in respect of collection of duty and taxes which was otherwise a daunting task owing to post COVID-19 pandemic economic constraints, Muharram’s holidays and heavy rain fall in Karachi which is the epicenter of country’s revenue collection.

    This heavy rainfall badly affected the customs clearance of imported cargo during the last week of this month and resultantly the revenue collection.

    According to the official figure, total customs duty collected during first two months of current FY-2020 is Rs. 92 billion. Sales tax collection at import stage is on lower side as compared to the corresponding period of the previous year owing again to heavy rain fall in Karachi.

    Furthermore, exemption granted in respect of Additional Customs Duty (ACD) on more than 1600 tariff lines in budget FY 2020-21, also subsequently resulted into decrease in sales taxable value.

    In line with the vision and directives of the honorable Prime Minister of Pakistan to curb the menace of smuggling, the Federal Board of Revenue (FBR) vigorously launched a countrywide counter-smuggling drive.

    The FBR accordingly directed its field formations to make all out efforts to intensify anti-smuggling activities.

    In pursuance of the aforesaid directions, Pakistan Customs has initiated massive anti-smuggling operations throughout the country and across all terrains that have led to significant seizures of smuggled goods.

    During the month of August 2020 alone, Customs seized smuggled goods worth Rs. 3.95 Billion as compared to Rs 2.1 Billion in August 2019, thus showing an increase of 87.3%. These seized goods included fabrics, cigarettes, foreign currency, POL products, auto parts, foodstuff, narcotics and other miscellaneous goods.

    Moreover, mega seizures of luxury vehicles, gold, and betel nuts were also effected during the same period. The Customs formations at Quetta, Peshawar and Multan have seized smuggled goods worth Rs. 1.6 Billion, while most of the remaining goods were at Karachi, Lahore and Islamabad from raids on godowns wherein smuggled goods were stored.

  • Stock market gains 55 points amid selling pressure

    Stock market gains 55 points amid selling pressure

    KARACHI: The stock exchange gained 55 points on Monday amid selling pressure seen in banks and fertilizer sectors, analysts said.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,111 points as against 41,056 points showing an increase of 55 points.

    Analysts at Arif Habib Limited said that the market gained a total of 255 points during the session, however, due to selling pressure in Banks and Fertilizer sectors the index saw erosion of all the gains.

    The index closed 55 points, which was caused by an increase in stock prices of PPL and OGDC during last half hour.

    Cement sector performed well today, which saw DGKC, LUCK and KOHC contributing positively to the Index.

    Cement sector realized the most volumes with 81.4 million shares, followed by Banks (71.7 million) and Technology (61.1 million). Among scrips BIPL topped the volumes with TRG (40 million) and POWERR1 (32 million).

    Sectors contributing to the performance include Cement (+50 points), E&P (+46 points), Tobacco (+27 points), Power (+22 points), Technology (-53 points), Banks (-41 points) and Fertilizer (-20 points).

    Volumes increased from 238.5 million shares to 451.7 million shares (+89 percent DoD). Average traded value also increased by 94 percent to reach US$ 97.3 million as against US$ 50.2 million.

    Stocks that contributed significantly to the volumes include BIPL, TRG, POWERR1, PRL and HASCOL, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include MARI (+28 points), PPL (+28 points), PAKT (+27 points), LUCK (+26 points) and HUBC (+19 points). Stocks that contributed negatively include TRG (-46 points), UBL (-21 points), POL (-19 points), ENGRO (-13 points) and HBL (-12 points).

  • SBP issues instructions to banks on sugar import

    SBP issues instructions to banks on sugar import

    KARACHI: State Bank of Pakistan (SBP) on Monday issued instructions to banks regarding import of sugar by private importers.

    The central bank said that the ministry of commerce had issued a public notice stating that the government had allowed import of 200,000 tons of white sugar by private importers as per the terms and conditions mentioned therein.

    The SBP said that to facilitate the import of sugar under the subject Public Notice, the banks may process the requests for import of white sugar as per following terms and conditions:

    Import may be allowed on behalf of those importers who have been issued permit(s) by the Ministry of Commerce under the above-mentioned Public Notice;

    Import may be allowed on CFR Free out basis, as an exception to the instructions given under Para 5 Chapter 13 of the FE Manual;

    Advance payment up to 100 percent of the value of letter of credit/contract/proforma invoice may be allowed, subject to compliance with other terms & conditions given under Para 30 of Chapter 13 of the FE Manual;

    The commercial banks have been asked to submit consolidated data of LCs issued and advance payments made, against issued permits, to Foreign Exchange Operations Department, SBP BSC, Head Office, Karachi on daily basis.

    The banks should also ensure compliance with all other terms & conditions of permit(s) issued by Ministry of Commerce.

  • FBR launches action against suspicious transactions to comply FATF requirement

    FBR launches action against suspicious transactions to comply FATF requirement

    ISLAMABAD: Federal Board of Revenue (FBR) has launched action against suspicious transactions to curb money laundering in order to meet the requirement of Financial Action Task Force (FATF).

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  • FBR issues list of businesses located in eight cities for mandatory income tax integration

    FBR issues list of businesses located in eight cities for mandatory income tax integration

    ISLAMABAD, July 5, 2023 – The Federal Board of Revenue (FBR) has issued a directive mandating the online integration of businesses located in eight major cities across Pakistan under the income tax laws. This measure is part of the FBR’s ongoing efforts to improve tax compliance and streamline revenue collection.

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  • Stock market gains 219 points amid mixed trading

    Stock market gains 219 points amid mixed trading

    KARACHI: The stock market gained 219 points on Thursday amid mixed trading activities.

    The Index closed at 41,082pts as against 40,863pts showing an increase of 219pts.

    Analysts at Arif Habib Limited said that the market added another 414pts during the session and closed the session +219pts. Cement and Banking sector stocks played important role today.

    BOP’s financial results brought the stock price down. Refinery sector faced selling pressure that brought ATRL and NRL down after posting respective financial results yesterday.

    E&P companies also saw selling pressure however, trading volume remained the same relative to past sessions. Banking sector led the volumes table with 78.2M shares followed by Cement (74.6M) and Technology (59.8M). Among scrips, BOP topped the volumes with 39.7M, followed by TRG (36.9M) and KEL (28.4M).

    Sectors contributing to the performance include Technology (+50pts), Cement (+35pts), Power (+34pts), Textile (+31pts) and Chemical (+25pts).

    Volumes increased from 508.1mn shares to 544.7mn shares (+7% DoD). Average traded value however declined by 7% to reach US$ 119.1mn as against US$ 128.5mn.

    Stocks that contributed significantly to the volumes include BOP, TRG, KEL, ANL and MLCF, which formed 25% of total volumes.

    Stocks that contributed positively to the index include TRG (+37pts), HUBC (+30pts), COLG (+27pts), HBL (+17pts) and THALL (+13pts). Stocks that contributed negatively include MCB (-14pts), POL (-12pts), BOP (-10pts), BAFL (-7pts) and SNGP (-6pts).