Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SBP extends date for exchange companies providing information

    SBP extends date for exchange companies providing information

    KARACHI: State Bank of Pakistan (SBP) on Thursday extended the date for exchange companies to submit information of customers related to anti-money laundering (AML) and Counter Financing Terrorism (CFT).

    The central bank amended the Foreign Exchange Circular No. 04 dated October 14, 2019 in this regard.

    The SBP said that in terms of instructions given in Para 5 (a) & (b) of the subject framework, authorized dealers in foreign exchange are required, inter alia, to complete the Risk Profiling of Customers and develop their distinct trade related Risk Profile by April 30, 2020.

    In view of the prevailing circumstances due to COVID-19 outbreak and representation from the banking industry, it has been decided to extend the aforementioned deadline up to September 30, 2020.

    Through the previous notification the SBP stated that in order to strengthen trade related Anti Money Laundering/Combating Financing of Terrorism (AML/CFT) regime and restrict possible misuse of banking channel, a comprehensive framework on the subject has been developed and attached herewith.

    Accordingly, Authorized Dealers (ADs) are advised to upgrade their systems and controls and bring policies and procedures in line with the requirements of the framework to ensure meticulous compliance with the provisions thereof with immediate effect except as otherwise provided in the framework

    The provisions of this framework are in addition to and not a replacement of already issued instructions on the subject of ML/FT risks.

    Therefore, the compliance of the same shall not absolve ADs from their legal and regulatory obligations under prevailing AML/CFT laws/rules and regulations or any other relevant law in force.

    ADs are also advised to educate their clients about their obligation of ensuring (a) correct declaration of particulars on the prescribed forms, (b) utilization of foreign exchange for the exact purpose for which it is acquired by them and (c) repatriation of foreign exchange that represents the full export value of goods. In the event, it is found that material information required to be submitted on the prescribed forms has been omitted or suppressed, foreign exchange is misutilized by a client of an AD or export proceeds repatriated by a client does not represent the full export value of goods, SBP shall initiate penal action against such delinquent parties under relevant provisions of the Foreign Exchange Regulation Act, 1947 (FERA).

    Further, the matter shall also be reported to relevant stakeholders for necessary action under the laws being administered by them.

    Failure to comply with the instructions on the subject and the regulatory obligations of AML/CFT may attract action against ADs under the FERA and other relevant laws.

  • Sindh exempts sales tax on Ehsaas Emergency cash transfer

    Sindh exempts sales tax on Ehsaas Emergency cash transfer

    KARACHI: Sindh Revenue Board (SRB) on Wednesday exempted sales tax on services to banking transfers made to Ehsaas Emergency Program.

    In a notification, the SRB said that the Sindh government had exempted the sales tax on the amount of commission (tariff heading 9819.1300) paid by the banks to their branchless banking retailers in Sindh on account of disbursement of financial assistance under the Ehsaas Emergency Cash Transfer Program of the government of Pakistan, subject to the conditions that the amount on account of such commission or service fee is not deducted from the amount of the financial assistance so transferred to the beneficiary, receiving the financial assistance, is paid the full amount of the assistance transfer.

    The SRB said that the exemption has been granted till 23:59 hours on June 30, 2020.

  • One month free coverage to motor insurance policy holders

    One month free coverage to motor insurance policy holders

    ISLAMABAD: Securities and Exchange Companies of Pakistan (SECP) on Wednesday directed insurance companies to allow one month free coverage to motor insurance policy holders.

    The regulator in a press release said that in light of the outbreak of COVID-19 (Coronavirus) it has been advised non-life insurance companies to grant one month free of cost extension in insurance coverage to all motor insurance policyholders.

    The ongoing lockdown situation across the country has resulted in a significant decline in traffic density. With intercity public transport almost at a significant halt and limited within the city commute, it can be inferred that the policyholder claims in relation to motor insurance policies, would also have significantly declined.

    Taking into account the decline and/or the anticipated low claim ratio in motor business due to lockdown, insurance companies have been encouraged to take steps to facilitate and pass on the benefit of low claim ratio to motor insurance policyholders.

    As the fight against COVID-19 pandemic continues, it becomes imperative that insurance industry show its commitment to serve its policyholders by providing maximum relief and facilitation in all operational aspects. SECP believes that such good gestures in these difficult times will further increase policyholder’s confidence in the insurance sector.

  • FBR allows input tax adjustment to retailers

    FBR allows input tax adjustment to retailers

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday allowed input adjustment of sales tax to Tier-1 retailers.

    The FBR issued SRO 344(I)/2020 to amend SRO 1190(I)/2019 dated October 02, 2019.

    The FBR allowed 95 percent input adjustment against output tax.

    The FBR through SRO 1190(I)/2019 issued fresh list of sectors to allow input adjustment by amending the Section 8B of Sales Tax Act, 1990.

    The following sectors were allowed input adjustment and refunds:

    1. Persons registered in electrical energy sector.
    2. Oil marketing companies and petroleum refineries.
    3. Fertilizers manufacturers.
    4. Persons making zero-rated supplies, including exports, provided that value of such supplies exceeds 50 percent of value of all taxable supplies in a tax period.
    5. Distributors.
    6. Gas distribution companies.
    7. Telecommunication services.
    8. Pakistan Steel, Bin Qasim, Karachi.
    9. Registered persons other than manufacturers, making supplies of items covered under the Third Schedule to the Sales tax Act, 1990, on which sales tax has been paid by the manufacturer or importer on retail price, provided that value of such supplies exceeds 80 percent of value of all taxable supplies in a tax period.
    10. Commercial importers where value of import subject to 3 percent value addition as prescribed in Twelfth Schedule to the Act exceeds 50 percent of value of all taxable purchases, including imports, in a tax period.
  • Stock market gains 605 points on positive sentiments

    Stock market gains 605 points on positive sentiments

    KARACHI: The stock market gained 605 points on Wednesday owing to positive sentiments prevailed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,159 points as against 32,553 points showing an increase of 605 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today with +211 points at the opening bell.

    The benchmark index gained 605 points during the session and closed at session’s high.

    Oil stocks got traction from positive trend in international crude oil price (WTI) that increased by 14 percent and helped E&P stocks to post price gains.

    Cement sector maintained the momentum throughout the day, except for realizing profit booking by the end of session, showing signs of regression in DGKC.

    Banking sector stocks also stay muted amid low volumes, due to prospects of rate cut.

    Cement sector posted highest trading volumes with 43.9 million shares, followed by O&GMCs (11.8 million) and E&P (10.8 million).

    Among scrips, MLCF topped the volumes with 18.4 million shares, followed by HASCOL (8.2 million) and DGKC (7.3 million).

    Sectors contributing to the performance include E&P (+177 points), Power (+121 points), Fertilizer (+85 points), Cement (+67 points), Inv Banks (+33 points) and Banks (-22 points).

    Volumes declined from 157.9 million shares to 140.5 million shares (-11 percent DoD). Average traded value, on the contrary, increased by 31 percent to reach US$ 47.6 million as against US$ 36.3 million.

    Stocks that contributed significantly to the volumes include MLCF, HASCOL, DGKC, EFERT and PIOC, which formed 33 percent of total volumes.

    Stocks that contributed positively to the index include HUBC (+116 points), OGDC (+61 points), POL (+50 points), FFC (+45 points) and LUCK (+39 points).

    Stocks that contributed negatively include BAHL (-35 points), HBL (-12 points), NESTLE (-8 points), HMB (-4 points), and PSO (-2 points).

  • Rupee gains four paisas on ease in import payment demand

    Rupee gains four paisas on ease in import payment demand

    KARACHI: The Pakistani rupee appreciated by four paisas against the US dollar on Wednesday, closing at Rs161.61 in the interbank foreign exchange market compared to the previous day’s closing of Rs161.65. Currency dealers attributed the gain to a notable ease in import payment demand, which helped stabilize and strengthen the local currency.

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  • State-owned land in major cities to be offered for sale to overseas Pakistanis

    State-owned land in major cities to be offered for sale to overseas Pakistanis

    Prime Minister Imran Khan announced on Tuesday that the government plans to sell state-owned land in major cities to overseas Pakistanis. This move aims to generate essential financial resources for the country.

    (more…)
  • Bank holiday announcement

    Bank holiday announcement

    KARACHI: Banks will remain closed on May 01, 2020 on the occasion of Labour Day as declared holiday by the government.

    State Bank of Pakistan (SBP) on Tuesday issued a circular informing the presidents and chief executives of all banks, development financial institutions and microfinance banks that the central bank will remain closed on May 01, 2020 (Friday) on the occasion of Labour Day as declared by the government.

  • Coronavirus infects 23 FBR officials

    Coronavirus infects 23 FBR officials

    KARACHI: At least 23 tax officials posted at Regional Tax Office (RTO) Quetta have been tested positive for coronavirus.

    A senior official of RTO Quetta confirmed that officials had been tested positive for coronavirus.

    The official said that initially 14 officials were infected with the virus. Further tests increased the number to 23. More, tests are underway.

    The RTO Quetta was sealed after the identification of cases last week. However, the office was resumed with limited staff approximately five percent of workforce.

    The Federal Board of Revenue (FBR) decided to conduct tests of all the officials at the regional office.

    The FBR recently issued precautionary measures for the prevention from COVID-19. However, the officials are not following the guidelines. The FBR has made it mandatory for all the officials to use face masks and sanitizers.

  • Stock market gains 239 points on further rate cut expectations

    Stock market gains 239 points on further rate cut expectations

    KARACHI: The stock market gained 239 points on Tuesday owing to expected lower inflation and possible further rate cut.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,553 points as against 32,315 points showing an increase of 239 points.

    Analysts at Arif Habib Limited said that the market saw rebound of cement sector as the concerns over cement price / bag dissipated.

    Upcoming data release on inflation and possible rate cut helped investors take a positive view on equities.

    International crude oil prices edged lower, with WTI slipping below US$ 11/bbl that kept pressure on E&P stocks.

    PSO, on the other hand, posted price gains during the session.

    Banking sector stocks also saw selling pressure due to the view of rate cut.

    Cement sector maintained top position in trading volumes with 59.6 million shares, followed by Vanaspati (20.5 million) and Banks (16.8 million).

    Among scrips, MLCF led the trading volumes with 36.2 million shares, followed by UNITY (20.5 million) and DGKC (6.6 million).

    Sectors contributing to the performance include Cement (+92 points), Power (+45 points), Food (+45 points), Fertilizer (+31 points), O&GMCs (+21 points), Banks (-39 points).

    Volumes increased from 122.2 million shares to 159.4 million shares (+29 percent DoD). Average traded value also increased by 10 percent to reach US$ 36.1 million as against US$ 33 million.

    Stocks that contributed significantly to the volumes include MLCF, UNITY, DGKC, BOP and HASCOL, which formed 48 percent of total volumes.

    Stocks that contributed positively to the index include HUBC (+49 points), ENGRO (+36 points), LUCK (+33 points), NESTLE (+23 points) and PSO (+20 points).

    Stocks that contributed negatively include BAFL (-23 points), UBL (-19 points), HBL (-14 points), DAWH (-13 points), and PAKT (-12 points).