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Author: Mrs. Anjum Shahnawaz

  • Women entrepreneurs to get loan up to Rs5 million: SBP

    Women entrepreneurs to get loan up to Rs5 million: SBP

    KARACHI: The State Bank of Pakistan (SBP) has decided to enhance the limit of loan for women entrepreneurs up to Rs5 million from Rs1.5 million in order to encourage women participation in the economy.

    In a statement issued on Tuesday the central bank said that it had enhanced the financing limit under its Refinance and Credit Guarantee Scheme for Women Entrepreneurs from Rs1.5 million to Rs5 million.

    The decision has been taken in light of feedback received from various stakeholders about current financing limit being insufficient to cover the financing needs of women entrepreneurs, the SBP said.

    This decision is in line with the government policy to support and revive economic activities in the country and SBP’s key objective of improving access to finance for priority segments including women entrepreneurs.

    Initially in August 2017, State Bank had introduced Refinance and Credit Guarantee Scheme for Women Entrepreneurs in underserved areas to promote financial inclusion and access to finance for women entrepreneurs in the country.

    Subsequently, the scope of scheme was enhanced to cover whole of Pakistan.

    Under this scheme, SBP provides refinance to participating financial institutions at 0 percent on their financing to women entrepreneurs at maximum end user rate of 5 percent. Moreover, 60 percent risk coverage is also available to the participating institutions.

    The enhancement in financing limit under SBP scheme is expected to increase financial inclusion of women since more women entrepreneurs are likely to be attracted for setting up of new businesses or for expanding the scope of their existing businesses by availing concessional financing under SBP scheme.

  • TPL, Pak Suzuki sign agreement for auto insurance

    TPL, Pak Suzuki sign agreement for auto insurance

    KARACHI: TPL Insurance, Pakistan’s first Direct Insurance Company, has signed a Memorandum of Understanding (MoU) with Pak Suzuki, the country’s largest car manufacturing company to provide services of auto insurance.

    A statement on Tuesday said that following the partnership, Pak Suzuki customers can avail TPL Insurance’s services at any of the 168 Pak Suzuki authorized dealerships operating nationwide.

    Customers will have access to One Window Auto Insurance Solution offering tailored coverage backed by the fastest claim settlement ever offered in Pakistan, Online Policy Issuance, services and repair facilities at Pak Suzuki authorized 3S dealerships along with Value Added Services like Self Survey using the TPL Insurance Mobile App – all at extremely competitive rates for Pak Suzuki Customers.

    TPL Insurance’s Value Added Services include Drive Pro, Pakistan’s first Telematics Auto Insurance which lets users track driving scores based on driving metrics to spot areas for improvement, helping users drive smart and make the streets safer to drive on. The Self Survey feature enables customers to lodge claims instantly, update details of their vehicle and manage maintenance schedules. In addition to these services, customers can also Buy, Claim and Renew insurance directly through the TPL Insurance App.

    This partnership is in line with TPL Insurance’s strategy to evolve as a dominant player by exploring profitable niches through the deployment of cutting-edge technology. With disruption at its core, TPL Insurance continues to invest in platforms that will grow Insurtech in the country.

    Commenting on the occasion, Muhammad Aminuddin, CEO, TPL Insurance said, “Together with Pak Suzuki, TPL Insurance will cater to the evolving needs of the companies’ mutual customers by delivering quality coverage and disruptive insurance solutions. I am confident that this partnership will boost TPL Insurance’s footprint in the market by catering to our rapidly growing economy and the population’s increasing consumption of insurance services.”

    Masafumi Harano, Managing Director, Pak Suzuki said, “This is an ideal time for such initiatives in Pakistan as the importance of customer services is at an all-time high. We are confident to grow together and explore more transparent and creative solutions for customers.”

  • FBR decides action against retailers for avoiding mandatory integration

    FBR decides action against retailers for avoiding mandatory integration

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to take action against retailers having huge turnovers for not complying with mandatory integration with the online system of the tax authority.

    In this regard the FBR on Tuesday directed the retailers, who are required to integrate their sales and purchases under Sales Tax Act, 1990, to link their invoicing system by August 31, 2020.

    The FBR has explained that all retailers who have the network of chain stores throughout Pakistan, located in air-conditioned big shopping malls or plazas and their cumulative electricity bill during the immediately preceding twelve consecutive months exceeds twelve hundred thousand rupees and they are engaged in bulk import and supply of consumer good on wholesale basis to the retailers as well as on retail basis in to the consumer and their shop’s size measures one thousand square feet in area or more must integrate their retail outlets with the FBR’s computerized system for real time reporting of sales.

    FBR has warned that the last date for such integration is August 31, 2020 and afterwards those who failed to integrate would be imposed a penalty up to rupees one million and if the offence continued, the business premises of such retailer shall be sealed.

  • Stock market gains 62 points in mixed trading

    Stock market gains 62 points in mixed trading

    KARACHI: The stock market has witnessed an increase of 62 points on Tuesday in mixed trading activities during the day.

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  • Rupee eases amid record monthly inflows of remittances

    Rupee eases amid record monthly inflows of remittances

    KARACHI: The Pak Rupee ended down by two paisas against dollar on Tuesday amid record remittances received by the central bank.

    The rupee ended Rs168.19 to the dollar from previous day’s closing of Rs168.17 in interbank foreign exchange market.

    Currency experts said that reports of record remittances received by the State Bank of Pakistan (SBP) helped the rupee to avoid significant depreciation against the foreign currency.

    The inflow of workers’ remittances hit monthly record high of $2.77 billion in July 2020.

    In July, workers’ remittances rose to US $ 2.768 billion. “This is the highest ever level of remittances in a single month in Pakistan,” according to the SBP.

    In terms of growth, remittances increased by 36.5 percent over July 2019 (y/y) and 12.2 percent over June 2020 (m/m). Given the impact of Covid-19 globally, this increase in worker’s remittances is encouraging.

  • FBR updates withholding tax rates on sale, purchase of immovable properties

    FBR updates withholding tax rates on sale, purchase of immovable properties

    ISLAMABAD: Federal Board of Revenue (FBR) has updated the withholding tax rates on sale and purchase of immovable properties for tax year 2021.

    The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment to Income Tax Ordinance, 2001 through Finance Act, 2020.

    Under Section 236C of Income Tax Ordinance, 2001 the withholding tax is to be collected on seller of immovable property.

    Every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society co-operative society and registrar or properties shall collect withholding tax from seller of immoveable property at the time of registering, recording or attesting the transfer.

    The tax rate shall be one percent of the gross amount of the consideration received. In case of person not appearing on the Active Taxpayers list (ATL) the tax rate shall be two percent of the gross amount of the consideration received.

    The withholding tax shall be minimum tax if property is acquired and disposed off within the same tax year; otherwise the tax shall be adjustable.

    Advance tax, under this section, is not be collected if the immovable property is held for a period exceeding four years.

    Under Section 236K of Income Tax Ordinance, 2001 the withholding tax shall be collected from purchaser of immovable property.

    Under Section 236K (1) every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society, co-operative society and registrar or properties shall deduct/collect withholding tax from the purchaser of immovable property at the time of registering, recording or attesting the transfer.

    The withholding tax rate shall be one percent of the fair market value. In case the person is not on the ATL the tax rate shall be two percent of the fair market value.

    The withheld tax shall be adjustable against total payable tax liability.

    Section 236K (3) of the Ordinance deals with advance tax on payment of installment in respect of purchase of allotment of immovable property where transfer is to be effected after making payment of all installments.

    Any person responsible for collection of payment in installment shall deduct/collect from the purchaser or allottee of the immovable property at the time of payment of installment.

    The tax rate shall be one percent of the fair market value. In case the person is not on the ATL the tax shall be two percent of the fair market value.

    The tax shall be adjustable against total tax liability.

  • FBR apologizes diplomat over show cause notice

    FBR apologizes diplomat over show cause notice

    ISLAMABAD: Federal Board of Revenue (FBR) has apologized over sending show cause notice to a foreign diplomat by an adjudication collection.

    In a tweet message, FBR spokesman said that it had been noticed that Customs Collectorate (Adjudication) Islamabad had sent a notice to the foreign diplomat.

    “Sending a notice to a foreign diplomat is against Vienna Convention which provides immunity to the foreign government officials and representatives of an embassy,” the spokesman said.

    On the directives of the FBR the Customs office amending the show cause notice and seizure report.

    The spokesman said that in the due course the FBR apologized the foreign diplomat over the act of the collectorate.

  • Sindh Excise collects Rs5.44 billion in July

    Sindh Excise collects Rs5.44 billion in July

    KARACHI: Sindh Excise and Taxation Department has collected Rs5.44 billion during the first month of current fiscal year 2020/2021, a statement said on Monday.

    Provincial Minister for Excise & Taxation and Narcotics Control and Parliamentary Affairs Mukesh Kumar Chawla in the statement said that the department had collected a total of Rs 5.442 billion in the current financial year 2020-2021 during the month of July.

    He further said that Rs.878.709 million was collected under motor vehicle tax, Rs.4141.677 million under infrastructure tax and Rs.67.807 million under professional tax.

    He said that Rs 2.861 million was collected in cotton fee, Rs 34.827 million in property tax and Rs 0.022 million in entertainment duty.

    He said that the overall situation of collection of taxes was better. However, he directed the officers to work harder and improve the tax collection situation.

    Provincial Minister Mukesh Kumar Chawla also requested the people, being law abiding citizens, they were supposed to deposit their taxes on time.

  • Engro Powergen approves revised IPPs-government MoU

    Engro Powergen approves revised IPPs-government MoU

    KARACHI: The Board of Directors (BOD) of Engro Powergen Qadirpur in a meeting held on Monday approved the revised terms of Memorandum of Understanding (MoUs) between Independent Power Producers (IPPs) and the government.

    The company in a letter sent to Pakistan Stock Exchange (PSX) informed that the Committee for negotiations with Independent Private Power Producers (“IPPs”), notified by Government of Pakistan (the “Committee”) and the IPPs representing the 2002 Power Policy projects, had several rounds of discussions in which the Committee had requested the IPPs to provide concession to the government which concession shall be passed on in the form of relief to the citizens of Pakistan.

    The IPPs have reached an understanding with Committee to alter their existing contractual arrangements in the larger national interest, to the extent of, and strictly with respect to, the matters listed under the MoU signed between the Parties on August 13, 2020.

    The terms of the MoU are subject to the approval of National Electric Power Regulatory Authority (NEPRA), Federal Cabinet, IPPs’ Board of Directors, other necessary corporate approvals and execution of the final agreement between the relevant parties.

    The Board of Directors of the Company in their meeting dated August 17, 2020 have in-principle approved the terms of the MoU.

    The Parties have, inter alia, reached an understanding that;

    — Return on Equity including Return on Equity During Construction shall be changed to 17 percent per annum in PKR on NEPRA approved equity at Commercial Operation Date of the Company calculated at USD/PKR exchange rate of PKR 148/USD, with no future USD indexation;

    — fuel and O&M shall be taken as one consolidated line item and any future net savings shall be shared 60:40 in favour of the power purchaser and Company respectively, after accounting for any reserves created, or to be created for major overhaul if the reserve for major overhaul remains unutilized, it shall be shared in the ratio of 60:40 between the power purchaser and the IPP, respectively;

    — Delayed Payment Rate (DPR) under the Power Purchase Agreement shall be reduced to KIBOR + 2 percent for the first 60 days after the due date, and thereafter at KIBOR + 4.5 percent as per the Power Purchase Agreement. Delayed Payment rate of fuel supplier will also be adjusted accordingly. In order to assess if a company has made any excess profits, the reconciled numbers between the Committee and Company, shall be submitted to NEPRA who shall hear and decide this matter in accordance with the 2002 Power policy, tariff determination and Power Purchase Agreement.

    Moreover, the Government of Pakistan shall actively support the creation of competitive power markets.

    All projects shall convert their contracts to Take and Pay basis, without exclusivity, when Competitive Trading Arrangement is eventually implemented and becomes fully operational.

    The parties have agreed that payment of the receivables of the company are an integral part of the MoU. The Power Purchaser and the government will devise a mechanism for repayment of the outstanding receivables with agreement on payment of receivables within an agreed time period, which will be reflected in the final/definitive agreement to be signed, post shareholder approval.

    Any understanding in relation to the definitive agreement will be disclosed as and when an agreement has been reached between the relevant parties, the company said.

  • Stock market sheds 168 points on profit taking

    Stock market sheds 168 points on profit taking

    KARACHI: The stock market fell by 168 points on Monday owing to profit taking by the investors during the day.

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