Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Exporters doubt refund payment release on FBR collection failure

    Exporters doubt refund payment release on FBR collection failure

    KARACHI: Exporters expressed concerns that their liquidity may be taken away by the government in shape of sales tax worth billions of rupees as Federal Board of Revenue (FBR) has failed to achieve its revenue collection target.

    Mian Anjum Nisar, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that the exporters fear that their precious liquidity taken away by the government in shape of sales tax worth billions of rupees which is completely stuck up and refunds may be excessively delayed because the FBR has also failed to achieve its revenue collection target.

    FPCCI chief held a comprehensive detailed meeting with the leading export oriented sector at PHMA House, Karachi with Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum and urged the Government to honour its commitment with the export sector.

    The President, FPCCI said that the exporters are in real fixed and under stress as Government is not implementing the decision it has taken to support export oriented sector.

    The Advisor to Prime Minister on Finance promised that the refunds will not get stuck up whereby he and his team have made a commitment that after passing of budget, his team will hold meetings with exporters and devise an automated system like in Bangladesh or China.

    Through the automated system, exporters will get a major amount from bank or the State Bank and would not be dependent on the FBR. Advisor Finance promised that if the new refund system will not work, the govt. will revisit its decision in 3-6 month period. Since more than 8 months have been passed and the FBR FASTER system has failed for speedy refunds, therefore, the Govt. should honour their commitment and restore zero rating – No Payment No Refund Regime for the export sectors.

    President FPCCI further told that the Govt. has failed to refund sales tax claims under FASTER System of textile exporters as per commitment, to refund claim amount in 72 hours, contrarily the Govt. has not paid exporters’ claims for the last seven months.

    Approx. Rs100 billion of textile exporters liquidity held up under FASTER Refund System in last 8 months and total Rs210 billion are withheld with the government.

    Payment timeline for payment of Customs Rebate claims which previously reduced to 7 months has again been prolonged to 13 months.

    However, Government also committed that Customs Rebate, DLTL claims will also be paid electronically along with export proceeds.

    Reportedly, hundreds of exporters SMEs have stopped their production owing to liquidity problems who have not received their sales tax refund claims for last seven months and due to high rates of utilities shall be compelled for closure if their sales tax refunds are not released on immediate basis and utility tariffs are not rationalized to facilitate them to get new orders and resume production.

    The President FPCCI emphasized to implement power tariff of 7.5 cents/kwh including all charges across Pakistan including Karachi and RLNG at 6.5 dollars/MMBTU.

    President also mentioned that while notification of said tariffs was issued the time period inadvertently was missing, it should be for three years period as agreed.

    He further informed that the OGRA has separated zero rated industry from general industry for Gas Tariff while NEPRA is still not implementing the decisions of separate treatment for zero rated and general industry.

    Mian Anjum Nisar President FPCCI said that the tariff for electricity and gas should be fixed on yearly basis for the Export Oriented Sectors and Priority be given only to these sector as the Export Sectors have to make commitments to their buyers for 6 months in advance and frequent increase in the electricity and gas tariffs jeopardizes their entire planning and they suffer huge losses to keep up commitments to their foreign buyers.

  • Stock market continues to slide on selling pressure

    Stock market continues to slide on selling pressure

    KARACHI: The stock market witnessed decline of another 520 points on Wednesday owing to selling pressure.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,338 points as against 38,858 points showing a decline of 520 points.

    Analysts at Arif Habib Limited said that the market observed continuation of downward trend today with index falling by 784 points during the session and closing -520 points.

    Similar to previous couple of sessions, foreign selling kept the local investors cautious despite positive news triggers. International crude price traded below US$50/bbl that caused E&P and OMC stocks to slide.

    Similarly, Banking sector saw profit booking by concerned investors as foreign selling continued unabated.

    Vanaspati segment realized trading volumes of 29.8 million shares, followed by O&GMCs 1(17.4 million) and Cement (16 million).

    Among scrips, UNITY led the volumes with 29.8 million shares, followed by HASCOL (10.4 million) and TRG (7.5 million).

    Sectors contributing to the performance include Fertilizer (-78 points), Banks (-77 points), Power (-68 points), O&GMCs (-50 points) and Inv Banks (-50 points).

    Volumes increased from 124.3 million shares as against 147.8 million shares (+19 percent DoD). Average traded value also increased by 16 percent t reach US$ 45.1 million as against US$ 38.6 million.

    Stocks that contributed significantly to the volumes include UNITY, HASCOL, TRG, BOP and MLCF, which formed 40 percent of total volumes.

    Stocks that contributed positively include HMB (+9 points), SCBPL (+4 points), MUREB (+3 points), SHFA (+2 points) and SEARL (+2 points).

    Stocks that contributed negatively include HUBC (-63 points), ENGRO (-56 points), DAWH (-48 points), UBL (-38 points), and PAKT (-32 points).

  • Taxpayers unable to file annual returns as FBR’s website goes offline

    Taxpayers unable to file annual returns as FBR’s website goes offline

    KARACHI: Taxpayers are not able to file their annual income tax returns for tax year 2019 as official portal of Federal Board of Revenue (FBR) is remained offline for past several hours on Wednesday.

    The taxpayers, who failed to avail past timelines for filing their income tax returns for tax year, were trying to open the FBR’s online e-filing portal since morning but they were unable to access the portal to discharge their liability.

    The FBR’s website was remaining offline till 4:50pm. FBR officials said that the website was offline for the past five to six hours.

    It is worth mentioning that the last date for filing income tax returns is February 28, 2020.

    The actual date for filing income tax for tax year 2019 was September 30, 2019 for salaried, business and Association of Persons (AOPs). For the companies the last date was December 31, 2019. However, the FBR extended the date for all taxpayers up to February 28, 2020.

    Sources in the FBR said that the tax machinery was trying to bring the website online as soon as possible. However, they were unable to explain the error.

    With the stoppage of the portal all the official work done online was also affected. Sources in local tax offices said that everything related to the portal was not responding.

    The sources said that the FBR may not extend the last date for filing income tax returns despite non-operation of the official portal of the FBR.

  • Rupee ends unchanged against dollar

    Rupee ends unchanged against dollar

    KARACHI: The Pak Rupee ended unchanged against dollar on Wednesday amid demand for import and corporate payments.

    The rupee ended Rs154.25 to the dollar, same previous day’s closing in interbank foreign exchange market.

    Currency dealers said that the market witnessed demands for dollars from importers and corporate buyers. However, inflows of remittances and export payments helped the rupee to end stable.

    The exchange rate in open market the rupee value was also remained unchanged. The buying and selling of dollar was recorded at Rs154.10/Rs154.40, same previous day’s closing level, in cash ready market.

  • Pakistan Stock Exchange declares 132% surge in net profit for first half

    Pakistan Stock Exchange declares 132% surge in net profit for first half

    KARACHI: The net profit of Pakistan Stock Exchange (PSX) has surged by 132 percent during six-month period ended December 31, 2019.

    The stock exchange announced its half year results for the period ended December 31, 2019 on Wednesday.

    The net profit of the market increased to Rs120.5 million during July – December 2019 as compared with Rs51.88 million in the corresponding period of the last year.

    It declared basic and diluted earnings per share at Re0.15 for the first half under review as compared with EPS of Re0.06 in the same half of the last year.

    Revenue under licensing fee increased to Rs201 million during July – December 2019 as compared with Rs169.87 million in the same period of the last year.

    Mark-up/interest income of the market increased to Rs78.66 million as compared with Rs62.82 million in the same period of the last year.

    Administrative expenses of the stock market slightly reduced to Rs559.21 million in first half of the current fiscal year as compared with Rs578 million in the corresponding half of the last fiscal year.

    The PSX received Rs185.83 million as income from share of profit from associates during six months period ended December 31, 2019.

  • OGDCL declares fall in net profit to Rs53.18 billion during six months

    OGDCL declares fall in net profit to Rs53.18 billion during six months

    KARACHI: The net profit of Oil and Gas Development Company Limited (OGDCL) fell to Rs53.184 billion for the six-month period ended December 31, 2019.

    According to financial results for the six-month period ended December 31, 2019 announced on Wednesday, the after tax profit for the same period in last year was Rs56.75 billion.

    The company declared earnings per share at Rs12.37 for the period, which was also declined when compared with Rs13.20 EPS declared in the same period of the last year.

    The net sales of the company increased to Rs133.44 billion for six months period ended December 31, 2019 as compared with Rs126.89 billion in the same period of the last year.

    Operating expenses of the company increased to Rs30.55 billion for the period under review as compared with Rs29.63 billion in the corresponding half of the last year.

    The exploration and prospecting expenditure increased to Rs10.42 billion as compared with Rs4.48 billion in the corresponding period of the last year.

  • FBR official website not responding

    FBR official website not responding

    KARACHI: The official website of Federal Board of Revenue (FBR) is not available online for the past few hours creating problems for income tax return filers as the date is expiring after two days.

    The official website https://www.fbr.gov.pk/ is not available online for the past few hours as the site showing massages of runtime error or connection timed out. The website was remained offline till 2:00pm on Wednesday.

    It is important to note that the last date for filing income tax returns is February 28, 2020 for tax year 2020.

    The actual last date for filing of income tax returns was September 30, 2019. However, the FBR allowed multiple extension in dates and latest extension was granted up to February 28, 2020.

    Sources in the FBR, however, said that the problem was being resolved in order to provide facilitation to taxpayers.

  • Pakistan Petroleum declares 21% decline in half year profit

    Pakistan Petroleum declares 21% decline in half year profit

    KARACHI: Pakistan Petroleum Limited (PPL) has announced 21 percent decline in after tax profit for half-year period ended on December 31, 2019.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Tuesday, the company declared net profit of Rs24.55 billion for the half year ended December 31, 2019 as compared with Rs31.04 billion in the same half of the last year.

    The company declared earnings per share of Rs9.02 for half year ended December 31, 2019 as compared with Rs11.41 in the corresponding period of the last year.

    The decline in profit has been mainly attributed to higher operating expenses and higher exploration expenses.

    The operating expenses of the company increased to Rs21.34 billion for the period under review as compared with Rs19.45 billion in the half-year period ended December 31, 2018.

    Similarly, exploration expenses grew to Rs11.74 billion for the half-year period ended December 31, 2019 as compared with Rs7.99 billion in the corresponding half of the last year.

    The company declared decline of profit by 39 percent to Rs10.31 billion for quarter ended December 31, 2019 as compared with Rs16.85 billion in the same quarter of the last year.

    Analysts at Topline Securities said that PPL’s reported lower than expected earnings during the outgoing quarter. This deviation from our estimates was mainly on account of higher than expected exploration expenses. Increase of 106 percent was seen YoY while on quarterly basis they increased by a massive 197 percent.

    PPL’s revenue grew by 7 percent YoY in 2QFY20, despite a decline of 3 percent in oil production and a 12 percent decline in gas production, the analysts said.

    Oil prices for the period didn’t fare well either declining 6 percent YoY for 2QFY20. The favorable exchange rate movement YoY was enough to post growth for the period under review YoY.

  • FBR advised to enhance monitoring, enforcement for achieving annual targets

    FBR advised to enhance monitoring, enforcement for achieving annual targets

    ISLAMABAD: The ministry of finance has advised Federal Board of Revenue (FBR) to enhance monitoring and enforcement in order to achieve annual targets.

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  • Health declaration made mandatory for passengers entering Pakistan

    Health declaration made mandatory for passengers entering Pakistan

    ISLAMABAD – In response to the ongoing challenges posed by the COVID-19 pandemic, the federal health ministry in Pakistan has taken a crucial step to safeguard public health.

    The ministry has mandated that all travelers entering the country must submit a health declaration form, outlining contact details and providing a brief travel history.

    The official statement issued on Tuesday highlights the imperative nature of this measure, aligning with the ministry’s commitment to implementing stringent health protocols and ensuring the safety of the nation. The health declaration form, a critical tool in managing the spread of the virus, has undergone a minor amendment, making its submission a prerequisite for entry into Pakistan.

    Passengers aboard incoming flights will now be required to complete and submit the Health Declaration Card, which includes vital information about their travel history and current health status. This proactive approach aims to enhance the monitoring and screening of individuals arriving in the country, minimizing the risk of potential COVID-19 transmissions.

    The Health Declaration Cards will be distributed to passengers during their flight, allowing them ample time to provide accurate and comprehensive details before landing. The submission process is designed to be straightforward, contributing to the ease of compliance for travelers.

    The government emphasizes that adherence to this new requirement is non-negotiable. Non-compliance with the health declaration submission will result in denial of entry to the country. This strict stance underscores the gravity of the situation and the government’s commitment to prioritizing public health.

    The health declaration form seeks demographic information, travel history, and details regarding the passenger’s health status. Specifically, individuals are asked to disclose any symptoms such as fever, cough, or shortness of breath. These details serve as essential data points for health authorities, aiding in the identification of potential cases and facilitating timely interventions.

    To streamline the process and ensure the effective implementation of this measure, health staff will be stationed in the International Arrival Lounge to receive the completed forms. The collaboration between passengers and health authorities is crucial in mitigating the impact of the virus and preventing its further spread within the country.

    The introduction of the Health Declaration Card is a testament to the government’s commitment to adopting proactive measures in the face of the evolving COVID-19 situation. The emphasis on transparency and cooperation from travelers is integral to the success of these efforts, as collective responsibility plays a pivotal role in managing public health crises.

    As the global community continues to grapple with the challenges posed by the pandemic, Pakistan’s proactive approach to implement health protocols for international travelers reflects a commitment to safeguarding the well-being of its citizens and mitigating the impact of COVID-19 on a national scale.