Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • 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).

  • FBR explains sealing of export TP cargo though Railways

    FBR explains sealing of export TP cargo though Railways

    KARACHI: Federal Board of Revenue (FBR) has issued procedure of sealing of export cargo under transshipment transported by Pakistan Railways.

    Sealing at focal points (Entry) for transshipment containers and dry port export cargo containers transported by Pakistan railways:

    I. The Custom Agent/carrier will lodge the TP application/ declaration in the Custom Facilitation Centre/ Transshipment Section of concerned Directorate of Transit Trade or electronically. After getting the delivery of the container, the Customs Agent/carrier will load the container on the Railways rolling stock/flat bed unit.

    II. After loading, the railway staff will inform PCCSS at relevant Focal Point Entry giving container numbers.

    III. The PCCSS officer will take the designated machine readable seal and check it for any defect. The bar code on the seal will be scanned by using the bar code reader, and in case bar code is accepted, Transport Note (single copy) in Form-A will be printed. In case the bar code is not validated, the defective seal will be returned to the box and a new seal number will be issued by the computer.

    IV. Once the input operation for all the containers to be sealed is completed, the PCCSS officer will collect the designated and validated seals and accompany the railways staff to the train alongwith the Transport notes.

    V. The PCCSS officer will place the, seal on the available slot on the door, making sure the correct number is placed on the correct container and that the container numbers correspond to the serial number of the bogie they are placed on.

    VI. The Transport Note (Form-A) will be handed over to the driver/supervisor/railway official of the Transport Unit to be carried with the Transport Unit en route.

    VII. In case the Transport Unit meets an accident en route or there is sufficient ground to believe that there is pilferage, replacement or substitution of ‘goods, the driver/carrier’s agent, or any enforcement unit of Customs, or the Collectorate of jurisdiction, ‘or any other person will inform the Incharge PCCSS, Special Checking Squads or any focal point. After checking veracity of the information, the Special Checking Squads or focal point, as the case may be, will inform the Incharge PCCSS through fax on Form-D and also on line immediately. The Incharge PCCSS will immediately record the discrepancy in register Form-C and may order stoppage of such Transport Unit and/or order any such action as deemed appropriate.

  • Rupee falls by Rs1.17 against dollar on import demand

    Rupee falls by Rs1.17 against dollar on import demand

    KARACHI: The Pak Rupee ended down by Rs1.17 against dollar on Tuesday as the local currency was seen under pressure on import payment demand.

    The rupee ended at Rs161.65 to the dollar from last trading day on April 24, 2020 at Rs160.48 in interbank foreign exchange market.

    The currency dealers said that the market was opened after three days including two weekly holidays and Zakat deduction on April 27, 2020,

    The prolong holidays enhanced the demand for dollar for import and corporate payments.

    They said that local currency would gain in coming trading days due to fall in international oil prices and improved external accounts.

    They said that that improved foreign direct investment and shrinking current account deficit helped the local currency to make gain.

    The inflow of Foreign Direct Investment (FDI) into Pakistan has witnessed sharp growth of 137 percent during first nine months (July – March) 2019-2020.

    The FDI increased to $2.15 billion during first nine months of current fiscal year as compared with $905 million in the corresponding period of the last fiscal year.

    Current account deficit (CAD) has contracted by 73 percent during first nine months (July – March) 2019/2020 due to significant decline in import bill.

    The current account deficit fell to $2.77 billion during first nine months of current fiscal year as compared with $10.28 billion in the corresponding period of the last fiscal year.

  • NA approves harsh penalties for manufacturers, retailers for obstructing tax monitoring

    NA approves harsh penalties for manufacturers, retailers for obstructing tax monitoring

    ISLAMABAD: The National Assembly has approved the law for imposition of harsh fine and penalties upon manufacturers and retailers for obstructing tax authorities in monitoring business activities.

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  • SECP extends submission of AML/CFT quarterly information up to May 31

    SECP extends submission of AML/CFT quarterly information up to May 31

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has extended the date up to May 31, 2020 for submission of mandatory information related to anti money laundering (AML)/ counter financing of terrorism (CFT) for the corporate sector.

    The SECP on Monday due to the recent outbreak of pandemic Coronavirus (COVID- 19) and its impact on the public health and the lockdown situation in the country, the Regulated Persons are facing various difficulties while ensuring compliance with regulatory requirements related to reporting and submission of information in the manner prescribed under Directive 55(1)/2020 dated January 28, 2020.

    The term Regulated Person (“RP”) has been defined in the Anti Money Laundering and Countering Financing of Terrorism (AML-CFT) Regulations, 2018 (“the Regulation”) as the “Regulated Person” means Securities Brokers, Futures Brokers, Insurers, Takaful Operators, NBFCs and Modarabas for the purposes of these regulations.

    The Securities and Exchange Commission of Pakistan (SECP) in discharge of its statutory responsibilities for effective AML/CFT regulation of its regulated financial sector seeks to clarify as follows:

    i. Relaxation in submission of quarterly information under Directive 55(1)12020:

    In view of Directive 55(1)12020 dated January 28, 2020 a thirty days extension in filing of AML/CFT quarterly information is provided to all RPs facing difficulties in submission of information for period ended March 31, 2020 that is required to be submitted by April 30,2020.

    Now, the said extension to submit quarterly information is being extended till May 31, 2020 for the quarter ended March 31, 2020 only.

    ii. Companies to make necessary work arrangements for ensuring regulatory compliances:

    As safety of employees is priority of the companies during the coronavirus (COVIT-19) outbreak, therefore RPs are encouraged to make necessary arrangements for the use of technology and related applications in order to enable them to work from home to meet the regulatory compliances.

  • Business support package announced for small industrial, commercial units

    Business support package announced for small industrial, commercial units

    In a bid to alleviate the financial burden caused by the coronavirus outbreak, the federal government has introduced a comprehensive support package for small industrial and commercial units.

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  • Stock market plunges by 492 points as energy scrips remain under pressure

    Stock market plunges by 492 points as energy scrips remain under pressure

    KARACHI: The stock market plunged by 492 points on Monday as energy scrips remained under pressure owing to slide in international oil prices. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,315 points as against 32,806 points showing a decline of 492 points.

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  • FBR notifies zero percent sales tax on services for construction industry

    FBR notifies zero percent sales tax on services for construction industry

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday notified sales tax on service at zero percent for construction industry as part of incentives announced by the prime minister for construction sector.

    The FBR issued SRO 326(I)/2020 to amend Islamabad Capital Territory (Tax Services) Ordinance 2001, to reduce the sales tax on services at zero percent from five percent.

    The FBR said that services provided by property developers and promoters (including allied services) relating to low-cost housing schemes sponsored or approved by Naya Pakistan Housing and Development Authority or under Government’s Ehsaas program, the rate of tax shall be zero percent subject to the condition that no input tax adjustment or refund shall be admissible.

  • Banks to remain closed for Zakat deduction

    Banks to remain closed for Zakat deduction

    KARACHI: Banks to remain closed for public dealing on Monday due to deduction of Zakat.

    The State Bank of Pakistan (SBP) in a statement said that it will remain closed for public dealing on Monday, April 27, 2020, which shall be observed as “Bank Holiday” for the purpose of deduction of Zakat.

    All banks / DFIs / MFBs shall, therefore, remain closed for public dealing on Monday, April 27, 2020.

    However, all employees of the banks / DFIs / MFBs will attend to their official assignments (in-office or work-from-home, as designated under the current COVID-19 situation) on Bank Holiday treating it as a normal working day (except for public dealing).

  • FBR exempts capital gain tax on sale of immovable properties

    FBR exempts capital gain tax on sale of immovable properties

    KARACHI: Federal Board of Revenue (FBR) has exempted capital gain tax on sale of immovable property under Tax Laws (Amendment) Ordinance, 2020.

    A new clause (114AA) has been inserted in Part I of the Second Schedule to the Ordinance, whereby exemption from tax on capital gains has been provided to a resident individual on sale of constructed residential property (a house having land area up to 500 square yards and a flat having an area up to 4000 square feet) used only for personal accommodation by the said individual, his spouse or dependents and for which any of the utility bills are issued in the name of such individual.

    The exemption shall not apply if it has been previously availed by such persons.

    No amendment has been, however, made in section 236C of the Ordinance, which implies that sale of the above properties will remain subject to collection of advance tax at 1% of sale consideration, unless the seller obtains an exemption certificate from the Commissioner.

    As per current provisions, capital gains on disposal of constructed property whose holding period exceeds four years is zero rated. Furthermore, in case such property is sold within one year of holding period, the amount of advance tax collected under section 236C at 1 percent of sale consideration is treated as minimum tax. It, therefore, appears that the purpose of this amendment is to provide an exemption from tax on capital gains on disposal of such constructed properties, which are held for less than four years.