Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Share market plummets by 165 points on profit taking

    Share market plummets by 165 points on profit taking

    KARACHI: The stock market fell by 165 points on Friday owing to profit taking on the last trade day of the week and bearish trend in world stocks.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,023 points as against 42,188 points showing a decline of 165 points.

    Analysts at Arif Habib Limited said that the market traded in a range following the onslaught in international markets that saw stocks markets in developed countries plummeting overnight.

    Local investors considered best to book profit rather than carry positions over the weekend.

    Selling pressure was observed in Cement, Fertilizer, E&P and Banking sector stocks amongst few winners in Steel and Tech sectors. O&GMCs topped the volumes with 92.7 million shares, followed by Cement (86.7 million) and Banks (82.2 million).

    Among scrips, HASCOL led the volumes with 73.1 million shares, followed by FFL (51.6 million) and UNITY (41.3 million).

    Sectors contributing to the performance include Banks (-60 points), Power (-59 points), Cement (-32 points), Fertilizer (-20 points) and Textile (-15 points).

    Volumes declined from 919.5 million shares to 758.1 million shares (-18 percent DoD). Average traded value also declined by 7 percent to reach US$ 149.4 million as against US$ 160.1 million.

    Stocks that contributed significantly to the volumes include HASCOL, FFL, UNITY, BOP and MLCF, which formed 29 percent of total volumes.

    Stocks that contributed positively to the index include SYS (+31 points), HASCOL (+20 points), ISL (+12 points), JLICL (+11 points) and PSX (+10 points). Stocks that contributed negatively include HUBC (-53 points), UBL (-26 points), LUCK (-22 points), TRG (-14 points) and ENGRO (-13 points).

  • Trade deficit narrows by 8.32 percent in July – August

    Trade deficit narrows by 8.32 percent in July – August

    ISLAMABAD: The trade deficit of the country has narrowed by 8.32 percent in the first two months of the current fiscal year owing to decline in import bill during the period under review.

    According to the data released by Pakistan Bureau of Statistics (PBS) on Friday, the trade deficit narrowed to $3.38 billion during July – August of 2020 as compared with $3.69 billion in the same period of the last year.

    The import bill of the country has declined by 6.28 percent to $6.96 billion during the first two months of the current fiscal year as compared with $7.43 billion in the same months of the last fiscal year.

    However, exports have also declined by 4.27 percent to $3.58 billion during the period under review as compared with $3.74 billion in July – August of 2019.

    The torrential rains and urban flooding during the last few days of August 2020 has adversely affected the supply chain, which affected the exports of the country.

    Due to this reason the exports fell by 21 percent to $1.58 billion in August 2020 when compared with $2 billion in previous month.

    In the month under review the imports have also fell by 11 percent to $3.28 billion as against $3.68 billion in July 2020.

    Meanwhile, the exports fell by 15 percent to $1.58 billion in August 2020 when compared with $1.85 billion in August 2019. On the other hand the imports fell by 12 percent to $3.28 billion as compared with $3.72 billion in August 2019.

  • Rupee appreciates by 27 paisas on improved inflows

    Rupee appreciates by 27 paisas on improved inflows

    KARACHI: The Pak Rupee appreciated by 27 paisas against dollar on Friday owing to increase in foreign exchange reserves of the country, dealers said.

    The rupee ended at Rs165.77 to the dollar from previous day’s closing of Rs166.04 interbank foreign exchange market.

    Currency experts said inflows of export receipts and workers remittances helped the local unit to recover the value.

    They further said that the increase in foreign exchange reserves of the country also helped the rupee to improve value.

    The liquid foreign exchange of the country has increased by $121 million to $19.843 billion by week ended August 28, 2020, according to the State Bank of Pakistan (SBP).

    The foreign exchange reserves were at $19.722 billion by week ended August 21.2020.

    The official foreign exchange reserves of the SBP increased by $72 million to $12.713 billion by week ended August 28, 2020 as compared with $12.641 billion a week ago.

    Similarly, the foreign exchange reserves held by commercial banks also increased by $49 million to $7.13 billion by week ended August 28, 2020 as compared with $7.081 billion a week ago.

  • Persons on Sales Tax ATL allowed sugar import with tax concessions

    Persons on Sales Tax ATL allowed sugar import with tax concessions

    ISLAMABAD: The ministry of commerce has said that only those importers, who are on the Active Taxpayers List (ATL) of Sales Tax issued by the Federal Board of Revenue (FBR), are eligible to import white sugar on concessional rate of tax.

    (more…)
  • Exports decline by 19.5 percent as rains, urban flooding disrupt supply chain

    Exports decline by 19.5 percent as rains, urban flooding disrupt supply chain

    ISLAMABAD: The exports have registered 19.5 percent decline in August 2020 owing to torrential rains and significant urban flooding in Karachi.

    (more…)
  • FBR allows monthly salary up to Rs25,000 paid in cash as business expense

    FBR allows monthly salary up to Rs25,000 paid in cash as business expense

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed monthly salary up to Rs25,000 per employee paid in cash as business expense after amendment made to Income Tax Ordinance, 2001.

    The FBR on Thursday issued Income Tax Circular No. 03 to explain changes made to Income Tax Ordinance, 2001 through Finance Act, 2020.

    The FBR said that section 21(m) of the Ordinance previously disallowed expenditure on account of monthly salary against business income if it was paid in excess of threshold of Rs 15,000 per month per employee and payment was made otherwise than through crossed cheque or direct transfer of funds to the employees bank account.

    The FBR said that the Finance Act, 2020, had increased this threshold to Rs25,000 per month per employee for payment of salary otherwise than through crossed cheque or direct transfer of funds to the employees bank account.

    The FBR further explained that Section 21(l) of the Ordinance does not allow deduction against business income if claim of a business expenditure exceeds Rs50,000/- under a single account head in aggregate and payment is made otherwise than through crossed banking instrument, online transfer of payment or credit card from business account of the taxpayer.

    However, this inadmissibility of deduction did not apply if a single transaction on account of such business expenditure remained at Rs. 10,000/- or below.

    “Finance Act, 2020 has increased these thresholds from Rs. 50,000 to Rs. 250,000/- and from Rs.10,000/- to 25,000/-respectively,” the FBR added.

    However, the FBR said that expenditure on account of utility bills is allowed against business income under section 20 of the Ordinance.

    “A new clause (p) has been added to Section 21 to disallow it if it is incurred in excess of certain limits and is in violation of certain conditions as may be prescribed by the FBR,” It added.

  • Filing income tax return mandatory for FTR taxpayers: FBR

    Filing income tax return mandatory for FTR taxpayers: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has said that filing annual income tax return is mandatory for taxpayers falling under final tax regime (FTR).

    The FBR on Thursday issued Income Tax Circular No. 03 of 2020 to explain major changes to Income Tax Ordinance, 2001 through Finance Act, 2020.

    The FBR said that prior to the Finance Act, 2020 persons subject to the final tax regime were obliged to file statement of final taxation under section 115(4) of the Ordinance.

    This section has now been omitted since final tax regime has been phased out for most of the transactions.

    “However, any person whose income is still subject to final tax regime, is now obligated to file normal income tax return and allied documents under the newly inserted clause (ae) in sub-section (1) of section 114 of the Ordinance,” the FBR said.

    The FBR further added that an enabling provision has also been inserted in clause (a) of sub-section (2) of section 114 of the Ordinance whereby the Board had been empowered to prescribe different returns for different classes of income or persons including persons subject to final taxation.

  • Foreign exchange reserves increase to $19.84 billion

    Foreign exchange reserves increase to $19.84 billion

    KARACHI: The liquid foreign exchange of the country has increased by $121 million to $19.843 billion by week ended August 28, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves were at $19.722 billion by week ended August 21.2020.

    The official foreign exchange reserves of the SBP increased by $72 million to $12.713 billion by week ended August 28, 2020 as compared with $12.641 billion a week ago.

    Similarly, the foreign exchange reserves held by commercial banks also increased by $49 million to $7.13 billion by week ended August 28, 2020 as compared with $7.081 billion a week ago.

  • KCCI rejects electricity tariff hike, demands immediate withdrawal

    KCCI rejects electricity tariff hike, demands immediate withdrawal

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has rejected the recent hike in electricity tariff and termed it disaster for the industry.

    The chamber also demanded the government to immediate withdraw the increase in electricity tariff.

    KCCI President Agha Shahab Ahmed Khan in a statement on Thursday said that the announcement of increase in rates of electricity ranging from Rs.1.09 to Rs.2.89 has come as a shock to the industries based in Karachi.

    “This is yet another blow to the trade and industry which is already suffering from losses as a result of lockdowns during Covid-19 pandemic and again due to devastating rainfalls in the city which has caused losses in billions of rupees,” he added.

    He urged Advisor to Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh to immediately withdraw this unjust and ill-timed hike in electricity tariff which would further aggravate the hardships for Karachiites who are struggling really hard to recover from devastating impact of coronavirus pandemic and subsequently the massive damage to their assets including buildings, warehouses, machinery and materials.

    The damage is yet to be assessed when the water is cleared and some normalcy is restored.

    He pointed out that ECC and higher authorities have shown utter disregard for the miseries and losses suffered by people of Karachi, by approving yet another electricity tariff hike because ECC had already imposed a tariff increase in July this year by Rs2.89 per with immediate effect.

    Before the industrial, commercial and residential consumers could absorb the tariff hike in July’ 2020, yet another increase was approved to further squeeze the consumers in a calamity hit city.

    “Indeed it is a huge disappointment that the Federal Government, instead of providing relief to the already burdened citizens of Karachi during the ongoing difficult times, continues to take anti-business and anti-Karachi actions.

    “It is well known fact that the economic hub of Pakistan today is passing through worst possible crisis and suffering due to a crumbling infrastructure, lockdowns and urban flooding due to the heaviest rainfall in 90 year history”, he added.

    On the one hand, the Prime Minister and Army Chief have shown their resolve to rescue the city of Karachi from complete destruction and economic fallout of natural as well as man-made disasters, while the ECC and honorable Advisors are taking decisions which are contrary to the commitments made by the Prime Minister and COAS, he opined.

  • Stock market gains 353 points on expected Karachi package announcement

    Stock market gains 353 points on expected Karachi package announcement

    KARACHI: The stock market witnessed an increase of 353 points on Thursday as positive sentiments prevailed over expected package to be announced by the prime minister during his Karachi visit.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,188 points as against 41,835 points showing an increase of +353 points.

    Analysts at Arif Habib Limited said that after posting one the recent high volumes on the bourse with 837 million shares, the market stepped up to clinch 917 million today, yet another high.

    Investor sentiment has been sky high in recent times, especially on the expectation of an announcement by Prime Minister on his scheduled visit to Karachi on September 04, 2020.

    Infrastructure development is expected to positively impact construction sector scrips, which prompted Investors to take interest in Cement and Steel sectors.

    MLCF and PIOC also hit upper circuits on the notification of substantial shareholding by sponsors.

    Among banking sector stocks, NBP continued the uptrend after posting an outstanding result yesterday.

    Banking sector stocks topped the volumes with 123.8 million shares, followed by Cement (112 million) and Technology (93.3 million). Among scrips, UNITY posted 51.2 million shares, followed by BOP (49.7 million) and KEL (41.8 million).

    Sectors contributing to the performance include Cement (+89 points), Banks (+51 points), O&GMCs (+44 points), Textile (+41 points) and Fertilizer (+35 points).

    Volumes increased further from 837 million shares to 919.4 million shares (+10 percent DoD). Average traded value also increased by 1 percent to reach US$ 159.9 million as against US$ 157.6 million.

    Stocks that contributed significantly to the volumes include UNITY, BOP, KEL, MLCF and HASCOL, which formed 24 percent of total volumes.

    Stocks that contributed positively to the index include MLCF (+31 points), SYS (+29 points), KTML (+22 points), NBP (+21 points) and PIOC (+19 points).

    Stocks that contributed negatively include HUBC (-25 points), BAHL (-13 points), POL (-8 points), OGDC (-6 points) and DAWH (-5 points).