Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Stockbrokers to provide information under AEOI

    Stockbrokers to provide information under AEOI

    KARACHI: Federal Board of Revenue (FBR) has asked stock brokers to provide information of foreign investors for Automatic Exchange of Information (AEOI).

    Pakistan Stock Exchange (PSX) on Tuesday referring to the FBR notice related to filing of Common Reporting Standards (CRS) Reports 2020.

    The FBR said that the Reporting Financial Institutions (RFIs) are required to obtain, maintain and file CRS information in accordance with Section 165B and 107(1) of Income Tax Ordinance, 2001 and the Common Reporting Standards Rules contained in Income Tax Rules, 2002.

    The said information has to be reported to FBR on annual basis on May 31 through the AEOI portal. The reports from RFIs are due on May 31, 2020.

    The FBR asked the stock exchange to direct the RFIs to ensure timely compliance as per law and rules, failing which the RFIs shall be penalized under Section 182 of the Income Tax Ordinance, 2001.

    Under Section 165B of Income Tax Ordinance, 2001 furnishing of information by financial institutions, including banks, is mandatory.

    (1) Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act,1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of1947) and any regulations made under the State Bank of Pakistan Act,1956 (XXXIII of 1956) on the subject, every financial institution shall make arrangements to provide information regarding non-resident or any other reportable persons to the FBR in the prescribed form and manner for the purpose of automatic exchange of information under bilateral agreement or multilateral convention.

    (2) All information received under this section shall be used only for tax and related purposes and kept confidential.

    (3) For the purpose of this section, the terms “reportable person” and “financial institution” shall have the meaning as provided in Chapter XIIA of the Income Tax Rules, 2002.

  • Stock market ends down by 101 points in trading activity

    Stock market ends down by 101 points in trading activity

    KARACHI: The stock market ended down by 101 points on Tuesday due to lackluster trading activities.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,175 points as against 40,277 points showing a decline of 101 points.

    Analysts at Topline Securities said that the market continued with its momentum in terms of lackluster activity.

    Index traded sideways making an intraday high of +324 points and intraday low of -211 points to finally close at 40,175 level.

    Traded volume declined further to 92 million shares, whereas traded value improved slightly on DoD basis by 11 percent to Rs.4.9 billion.

    Unity was volume leader for the second consecutive day of the week, as more than 13 million shares of the company changed hands during the trading activity.

    PSO in the oil marketing sector declared its 2QFY20 result in which it posted EPS of Rs.6.19 for the quarter which was largely in line with expectation.

  • High pollutants identified at Kemari; preliminary report on toxic gas released

    High pollutants identified at Kemari; preliminary report on toxic gas released

    KARACHI: A preliminary report related to toxic gas leakage near port area revealed high pollutants with presence of lethal gases.

    Global Environment Lab Private Limited on Tuesday issued its preliminary report related to incident of poisonous gas leakage in Kemari, Karachi.

    It said that recent incident of leakage of mysterious gas in the vicinity of Kemari, Karachi on February 17, 2020, claimed the lives of 11 people and affected hundreds of people as per media reports. However, the source of this gas is yet to be confirmed.

    Global Environmental Lab Pvt. Ltd. being socially responsible entity voluntarily monitored the air quality on number of locations on the request of Sindh Environmental Protection Agency (SEPA).

    The objective was to assess the presence of toxic gases and their levels in the area. Levels of CO, NO. H2S, SO2, VOCs, O3, PM2.0 and PM2.5 were assessed.

    “The level of all pollutants were found to be higher than the allowable limits when monitored aournd midnight near Ziauddin Hospital Kemari,” the report said.

    However, the main source of gas leakage and reason for fatalities is yet to be confirmed.

    “The higher levels of pollutants at sea view are need to be assessed further as they may be due to local factors,” it added.

  • Rupee gains five paisas against dollar on inflows

    Rupee gains five paisas against dollar on inflows

    KARACHI: The Pak Rupee gained five paisas against dollar on Tuesday as market witnessed mixed trend during the day.

    The rupee ended Rs154.23 to the dollar from previous day’s closing of Rs154.28 in interbank foreign exchange market.

    Currency dealers said that the market witnessed depreciation of rupee earlier in the day owing to demand from importers and corporate buyers.

    However, inflows of export earnings and remittances helped the rupee to gain the value.

    The foreign currency market initiated in the range of Rs154.35 and Rs154.38. The market recorded day high of Rs154.35 and low of Rs154.18 and closed at Rs154.23.

    The exchange rate in open market also witnessed depreciation in the rupee value. The buying and selling of the dollar was recorded at Rs154.10/Rs154.40 from previous day’s closing of Rs154.00/Rs154.30 in cash ready market.

  • FBR extends ST, FE return date up to February 26

    FBR extends ST, FE return date up to February 26

    KARACHI: Federal Board of Revenue (FBR) has extended the last date for filing sales tax (ST) and federal excise (FE) return for the month of January 2020 up to February 26, 2020.

    The FBR issued a notification on Tuesday addressing all chief commissioners Inland Revenue of Large Taxpayers Units and Regional Tax Offices to inform about extension in date of submission of sales tax and federal excise return for the tax period of January 2020.

    The FBR said that the date has been extended for submission of sales tax and federal excise return up to February 26, 2020 for the tax period of January 2020, which was due on February 18, 2020.

  • SBP imposes penalty of Rs12.8 million on HBL

    SBP imposes penalty of Rs12.8 million on HBL

    KARACHI: State Bank of Pakistan (SBP) has imposed monetary penalty of Rs12.8 million on Habib Bank Limited (HBL) for procedural violations in the area of Customers Due Diligence (CDD) and Know Your Customer (KYC).

    The SBP on Tuesday said that it had imposed monetary penalty on HBL under significant enforcement actions during January 2020.

    The central bank directed HBL to improve the areas of CDD and KYC.

    The SBP imposed Rs219.138 million as penalty on five banks during the month of December 2019 for violating mainly regulations related to foreign trade operations, Customers Due Diligence (CDD) and Know Your Customer (KYC).

    The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.

    In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions

    With the latest penal action the total amount of penalty during first seven months (July – January) 2019/2020 increased to Rs1,581.8 million.

  • Foreign direct investment increases by 66% in July – January

    Foreign direct investment increases by 66% in July – January

    KARACHI: The inflows of foreign direct investment (FDI) into Pakistan has increased by 66 percent during first seven months (July – January) of 2019/2020, State Bank of Pakistan (SBP) said on Tuesday.

    The inflows of FDI during the period under review increased to $1.56 billion as compared with $944 million in the corresponding period of the last fiscal year.

    The total foreign private investment during July – January 2019/2020 registered 196 percent growth. The foreign private investment increased to $1.58 billion as compared with $535 million in the same period of the last fiscal year.

    The flow of portfolio investment into the capital market increased by 105 percent during the period under review. The capital market witnessed inflows of $21.5 million during July – January 2019/2020 as compared with outflow of $409 million in the corresponding period of the last fiscal year.

    The total inflows of foreign investment has been recorded at $3.42 billion during the period under review. The main source of this investment can be attributed to foreign investment in debt securities.

    The inflow of debt securities during first seven months of current fiscal year was at $1.84 billion.

  • Mobile phone import climbs up by 79.46% in seven months

    Mobile phone import climbs up by 79.46% in seven months

    KARACHI: The import of mobile phones has surged by 79.46 percent during first seven months (July – January) of current fiscal year owing to reduction in tax rate by the government to promote digital economy.

    The import of mobile phones increased to $760.58 million during first seven months of current fiscal year as compared with $423.82 million in the corresponding months of the last fiscal year, according to import data released by Pakistan Bureau of Statistics (PBS).

    The government announced Tax Laws (Second Amendment) Ordinance, 2019 on December 28, 2019 through presidential order.

    Prior to the promulgation of the Tax Laws (Second Amendment) Ordinance,2019 the rate of withholding income tax on the import of mobile phones was Rs.730 in case of a mobile phones having value exceeding 30 UD dollars and up to 100 US Dollars.

    In order to complement the efforts of the government towards promotion of financial inclusion, e-commerce etc, income tax at the import stage in respect of mobile phones having value exceeding 30US dollars and up to 100US dollars has been reduced from Rs.730 to Rs.100 per mobile phone.

  • Import of used cars plunges by 77% in seven months

    Import of used cars plunges by 77% in seven months

    KARACHI: The import of used and old cars plunged by 77 percent during first seven months (July-January) of 2019/2020 due to condition of payment of duty and taxes through foreign exchange imposed by the government.

    The import of used and old cars in Completely Built Unit (CBU) condition fell by 77 percent to $43.64 million during July – January 2019/2020 as compared with $193.43 million in the corresponding period of the last year, according data released by Pakistan Bureau of Statistics (PBS) on Monday.

    The commercial import of used or old cars is not allowed under prevailing laws of the country. However, in order to facilitate expatriate Pakistanis the government allows incentives to bring cars into the country.

    The Federal Board of Revenue (FBR) has allowed Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under these schemes: Personal Baggage; Gift Scheme; and Transfer of Residence.

    The cars not older than three years and other vehicles not older than five years can be imported under these schemes.

    In the past these schemes were grossly misused and bulk of imported cars brought into the country.

    However, the ministry of commerce in February 2019 amended Import Policy Order, 2016 and made it mandatory for clearance of cars through foreign exchange, which should be certified by banks.

    Since then the clearance of the cars has come to a standstill. Customs authorities said that a large number of imported cars were at the port but importer had failed to make payment as per procedure prescribed by the ministry of commerce.

    However, in November 2019 Economic Coordination Committee (ECC) decided to allow payment for duty and taxes for customs clearance of imported cars through local resources with condition that if foreign exchange becomes short due to currency fluctuations or change in duty and tax rates.

    The overall import of Completely Built Unit (CBU) vehicles during first seven months of current fiscal year fell 71 percent. The import of heavy vehicles including buses and trucks has declined by 59 percent. While import of CBU motorcycles fell by 74 percent.

    On the other hand the import of cars as Completely Knocked Down (CKD) condition also fell by 46.46 percent to $261 million during July – January 2019/2020 as compared with $487.6 million in the same period of the last fiscal year.

    Industry sources said that massive depreciation in the local currency during past couple of years had increased the cost of local car manufacturers.

    Further, the rates of locally assembled cars for end consumers also jumped up sharply.

    These factors have reduced the productions of locally manufactured cars and subsequently reduced the import of cars in CKD condition.
    The overall import of vehicles in CKD fell by 45.58 percent to $417.2 million during first seven months of 2019/2020 as compared with $766.54 million in the corresponding period of the last fiscal year.

  • British deputy high commission delegation visits CDC

    British deputy high commission delegation visits CDC

    KARACHI: A delegation from British Deputy High Commission, Karachi visited the Central Depository Company (CDC), a statement said on Monday.

    The delegation was headed by Mike Nithavrianakis, British Deputy High Commissioner in Karachi. Representatives of leading Pakistani corporate units and UK businesses in Pakistan attended this event.

    British Deputy High Commissioner, Mike Nithavrianakis spoke about the untapped potential Pakistan has to offer and how the landscape of UK Business in Pakistan needs to expand and grow.

    Mike Nithavrianakis said: “Although I am the Deputy High Commissioner with responsibility for Sindh and Balochistan, a more prominent part of my role is being the director of trade.

    “We feel that diplomatically, in a country like Pakistan, where significant improvements in the security situation are changing perceptions, we need to shift the conversation towards mutual prosperity and increased trade investment.”

    He lauded CDC on its achievements in transforming the Pakistani Capital Market and highlighted the improvement of Pakistan’s ranking to 28 places in the area of Ease of Doing Business, according to the World Bank Index.

    Earlier in his welcome address Moin M. Fudda, Chairman CDC Board of Directors spoke briefly about the long term friendly relations between UK and Pakistan while stressing on the need to foster greater ties on economic, business and other fronts.

    Badiuddin Akber, CEO-CDC, gave a presentation on the Pakistan Capital Market landscape and CDC’s key role in its development.