Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR receives 20,000 tax returns in one week

    FBR receives 20,000 tax returns in one week

    ISLAMABAD: Around 20,000 taxpayers have filed their annual income tax returns during one week after expiry of filing date.

    According to latest Active Taxpayers List (ATL) the number of return filers increased to 2.55 million by March 08, 2020.

    There were around 2.53 million return filers when the Federal Board of Revenue (FBR) issued ATL for tax year 2019 on March 01, 2020.

    The last date for filing income tax returns for tax year 2019 was February 28, 2020.

    The return filers including salaried persons, business individuals, Association of Persons (AOPs) and companies can check their names on the ATL by visiting How to check ATL status?

    The filing of income tax return is mandatory for persons driving taxable income or specified under Section 114 of Income Tax Ordinance, 2001.

    The appearance of names on the ATL is only possible after filing income tax returns within due date. In case persons are not on the ATL then the rate of withholding tax shall be increased by 100 percent on various transactions.

    Persons fail to file their returns by due date but file after the date will also not qualify to enlist their name on the ATL until fine is not paid to the Federal Board of Revenue (FBR).

    Currently the ATL is in applicable on the basis of income tax returns filed for tax year 2018. The FBR will issue new ATL on the basis of returns filed for tax year 2019 on March 01, 2020.

    A taxpayer should check his/her status on the ATL before making transactions in order to avail reduced rate of tax rates.

  • Car sales come down by 44% in eight months

    Car sales come down by 44% in eight months

    KARACHI: The domestic car sales have declined by 44 percent during first eight months of current fiscal year owing to higher prices and economic slowdown.

    According to data released on Wednesday by Pakistan Automotive Manufacturers Association (PAMA), the total car sales declined to 90,834 units during July – February 2019/2020 as compared with 162,240 units in the corresponding period of the last fiscal year.

    Market experts attributed the decline to higher car prices and unattractive high interest rate. Besides the slowdown in economy is another major reason.

    The sales of Honda Car fell by 61 percent to 12,497 units during first eight months of current fiscal year as compared with 32,077 units in the corresponding period of the last fiscal year.

    The sales of Indus Motors fell by 49 percent to 22,707 units during the period under review as compared with 44,409 units in the same period of the last fiscal year.

    The sales of Pakistan Suzuki fell by 35 percent to 55,630 units during July – February 2019/2020 as compared with 85,754 units in the corresponding period of the last fiscal year.

    Pakistan’s car sales increased by 2 percent MoM in February 2020; led by 12 percent MoM rise in sales of Indus Motor (INDU).

    Pak Suzuki Motor (PSMC) and Honda Car (HCAR) both witnessed decline in sales by 3 percent MoM each.

  • ECC approves electricity subsidy package for export sector

    ECC approves electricity subsidy package for export sector

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet has approved a special relief package for export sector in shape of subsidized electricity.

    Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Wednesday at the Cabinet Division.

    The ECC approved a proposal by Power Division for a special relief package to further continue provision of subsidized electricity until June 2020 to five export oriented sectors.

    ECC has discussed proposal to increase wheat support price to Rs 1400 per 40 kg and will convene a special session tomorrow afternoon to discuss a detailed plan to keep the flour prices at the lowest possible level throughout the year in view of any increase in support price and incidental charges for supply of PASSCO procured wheat to provinces and allied issues related to procurement of wheat by provinces and the private sector.

    ECC also approved a proposal by Ministry of Energy (Power Division) for two amendments aimed at providing ease of doing business to upstream Petroleum sector.

    The amendments are related to extension of exploration licences beyond two years by ECC rather than the Minister in Charge of Petroleum Division and creation of a new Zone-1 (F) for onshore licensing regime and consequent revision in the Zonal Map.

    The ECC also approved National Telecommunication Corporation’s revised budget estimates for 2018-19 and 2019-2020.

    The ECC also gave an in principal approval for a proposal for SAR 22.5 million equity investment abroad by Eastern Products Pvt (Ltd) Pakistan.

  • Equity market declines by 22 points amid selling in E&P sector

    Equity market declines by 22 points amid selling in E&P sector

    KARACHI: The equity market fell by 22 points on Wednesday after witnessed over 600 points gain earlier in the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,673 points as against 37,696 points showing a decline of 22 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today and gained 637 points during the session, only to see Saudi and UAE signaling crude production ramp-up in April.

    That caused E&P sector sliding again, with PPL trading near yesterday’s lower circuit breaker.

    Cement sector bore selling pressure due to profit booking, which caused index coming down and erasing all the gains, closing the session 22 points down. Cement sector topped the volume with 65.6M shares, followed by Banks (22.5 million) and O&GMCs (18.8 million). Among scrips, MLCF posted 17.6 million shares, followed by FCCL (15.9 million) and HASCOL (13.4 million).

    Sectors contributing to the performance include Banks (+90 points), Pharma (+20 points), Fertilizer (-26 points), E&P (-25 points), O&GMCs (-19 points).

    Volumes declined from 274.8 million shares to 217.6 million shares (-21 percent DoD). Average traded value also declined by 29 percent to reach US$ 74.7 million as against US$ 105.6 million.

    Stocks that contributed significantly to the volumes include MLCF, FCCL, HASCOL, PPL and BOP, which formed 31 percent of total volumes.

    Stocks that contributed positively include HBL (+27 points), UBL (+25 points), BAHL (+23 points), BAFL (+16 points) and SEARL (+13 points). Stocks that contributed negatively include PPL (-14 points), ENGRO (-11 points), FFC (-11 points), MLCF (-9 points), and LUCK (-9 points).

  • Rupee ends down 98 paisas against dollar

    Rupee ends down 98 paisas against dollar

    KARACHI: The Pak Rupee fell by 98 paisas against dollar on Wednesday owing to outflow of hot money from domestic debt market, currency dealers said.

    The rupee ended at Rs158.43 to the dollar from previous day’s closing of Rs157.45 in interbank foreign exchange market.

    The rupee fell for the third consecutive day and lost around Rs4.19 against the dollar.

    The currency dealers said that the rupee was under pressure due to announcement of monetary policy scheduled for March 17, 2020.

    Currency experts said that the market is expecting a massive policy rate cut in the upcoming monetary policy statement. They said that currently the investment in local debt market was due to higher policy rate of 13.25 percent.

    The foreign currency market was initiated in the range of Rs157.40 and Rs157.70. The market recorded day high Rs158.75 and low of Rs157.30 and closed at Rs158.43.

    The exchange rate in open market also witnessed sharp decline in rupee value. The buying and selling of dollar was recorded at Rs157.00/Rs158.00 from previous day’s closing of Rs156.00/Rs157.00 in cash ready market.

  • Rupee falls by 96 paisas in intraday

    Rupee falls by 96 paisas in intraday

    KARACHI – The Pakistani Rupee witnessed a significant depreciation against the US Dollar, falling sharply by 96 paisas in intraday trading on Wednesday.

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  • Tax collection from rental income surges by 68% on better enforcement

    Tax collection from rental income surges by 68% on better enforcement

    The Regional Tax Office (RTO)-II Karachi has reported a remarkable surge in tax collection from property income during the first eight months (July-February) of the current fiscal year, marking a significant increase of 68 percent.

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  • FBR to promote IRS, PCS officers from BS-18 to BS-19

    FBR to promote IRS, PCS officers from BS-18 to BS-19

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday announced that it will promote officers of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) from BS-18 to BS-19.

    In an office memorandum, the FBR said that the meeting of Departmental Selection Board (DSB) for promotion from BS-18 to BS-19 is being convened shortly.

    Therefore, the FBR directed all BS-18 officers of IRS/PCS and ex-cadre, who are in promotion zone to get their performance evaluation report (PERs) completed up to June 30, 2019 by March 25, 2020.

    The FBR also directed concerned reporting/countersigning officers to forward the PERs pending with them to the board immediately.

  • Remittances grow by 5.4% in July-February

    Remittances grow by 5.4% in July-February

    KARACHI: The workers’ remittances received during July – February 2019/2020 amounted to $15.126 billion recording an increase $770.7 million or 5.4 percent over remittances received during July – February FY19 ($ 14,355.8 million), State Bank of Pakistan (SBP) said on Tuesday.

    Workers’ remittances during February 2020 amounted to $ 1,824.3 million recording a decrease of $ 83 million or 4.4 percent over remittance received during previous month (January 2020 $ 1,907.32 million).

    The remittances during February 2020 ($ 1,824.3 million) increased by $ 242.6 million or 15.3 percent over remittance received during corresponding month of FY 19 ($ 1,581.8 million).

    During February 2020, larger amounts of Workers’ Remittances are received from Saudi Arabia ($ 421.96 million), UAE ($ 387.1 million), USA ($ 333.5 million) and UK ($ 253.5 million) recording a decrease of 2.6 percent, 2.1 percent, 0.5 percent and 15.2 percent respectively as compared to January 2020.

  • KTBA highlights difficulties in claiming exemption

    KTBA highlights difficulties in claiming exemption

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday highlighted issues faced by taxpayers in obtaining exemption against import of raw material and plant and machinery.

    The KTBA in a letter to Member Inland Revenue (Operations), Federal Board of Revenue (FBR) highlighted the issues being faced by taxpayers while claiming exemption from income tax deduction on import of raw materials and plant and machinery.

    The desired exemption certificate against tax deduction on import of raw material is though being auto generated by IRIS portal on the basis of annual quota allowed by the Commissioner Inland Revenue, the same however, for the past 6-7 days is not being uploaded on WeBOC portal. Consequently, the Custom authorities are unable to allow any exemption as the same is not being reflected on their WeBOC portal.

    Secondly the IRIS portal has not been enabled to distinguish exemption application applied for raw material and the one applied for exemption on plant and machinery.

    The KTBA said that consignment/LC wise exemption certificate is allowed against tax deduction on import of plant and machinery. However, while trying to apply for the said exemption certificate, following error message pops up on IRIS portal:
    “You are not allowed any quota”

    Any quota related objection can only be relevant in case of import of raw material and not otherwise.

    The issues highlighted above are not more than IT Glitches and can be brought to correction with minimum due attention on the details of the system requirements.

    In view of the foregoing, the KTBA requested the Member to kindly issue directions for resolutions of these issues on urgent basis so as to facilitate taxpayers.