Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Stock market falls by 226 points on selling pressure

    Stock market falls by 226 points on selling pressure

    KARACHI: The stock market witnessed decline of 226 points on Thursday owing to selling pressure prevailed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,578 points as against 37,804 points showing a decline of 226 points.

    Analysts at Arif Habib Limited said that the market had an exciting session, which resulted in quite some fluctuation between positive and negative throughout the day and closed the session -226 points.

    Selling pressure was mainly observed in Cement, Steel, Pharma, OMCs etc. which caused the market to plunge.

    Banking sector stocks, MCB, HBL, UBL saw buying activity that helped Index balance a bit, however, selling pressure eroded the gains posted by Banking sector stocks.

    During the session, market went up by 302 points but lost these gains and declined by 264 points. Textile sector led the volumes with 41.4 million shares, followed by Vanaspati (38.1 million) and Technology (34.1 million).

    Among scrips, UNITY topped the volumes with 38.1 million shares, followed by ANL (31.2 million) and FFL (23.4 million).

    Sectors contributing to the performance include Banks (+21 points), Inv Banks (+12 points), Cement (-116 points), Power (-36 points), E&P (-30 points), O&GMCs (-24 points), Pharma (-22 points).

    Volumes declined from 405.5 million shares to 379.3 million shares (-6 percent DoD). Average traded value also declined by 21 percent to reach US$ 84.0 million as against US$ 106.2 million.

    Stocks that contributed significantly to the volumes include UNITY, ANL, FFL, KEL and HASCOL, which formed 35 percent of total volumes.

    Stocks that contributed positively to the index include MTL (+19 points), MCB (+18 points), DAWH (+14 points), INDU (+9 points) and UBL (+8 points). Stocks that contributed negatively include LUCK (-55 points), HUBC (-36 points), PPL (-25 points), ENGRO (-15 points), and DGKC (-14 points).

  • Complaints against banks double in four years: SBP

    Complaints against banks double in four years: SBP

    KARACHI: The State Bank of Pakistan (SBP) on Thursday said that complaints against banks have doubled in four years owing to effective dispute resolution and awareness of consumers.

    The SBP said that the complaints against banks during past four years have increased from 774,656 in 2016 to 1,549,837 in 2019.

    State Bank of Pakistan (SBP) has conducted a four year (2016-2019) review of complaints against Banks/MFBs/DFIs. The objective of the review was to gain insights on effectiveness of complaint management at banks.

    The salient features of the review are being published to emphasize SBP’s narrative that responsible complaint handling is the core element of Fair Treatment of Consumer (FTC).

    This review is conducted in addition to various regulatory measures to enhance consumer grievance handling in the industry including the issuance of detailed guidelines on complaint management at banks and self-assessment framework.

    It is pertinent to mention here that responsible banking conduct and FTC is one of the key regulatory agendas of the State Bank of Pakistan (SBP).

     SBP recognizes that effective and efficient consumer grievance handling mechanisms are crucial elements of FTC regime, therefore, it considers consumer complaints as an opportunity to improve banking services and increase customer satisfaction.

    This increase can be attributed to improved visibility and access of dispute resolution mechanism coupled with enhanced consumer awareness. Further, this is also due to the fact that number and value of banking transactions have increased substantially.

    For instance, the volume and value of ATM/debit card transactions have increased by 101 percent and 110 percent respectively over the reporting period.

    The number of deposit accounts per ATM and per branch shows increase of 62 percent and 81 percent respectively. Similarly, during 2016 to 2019, volume and value of E-banking transactions have substantially increased by 112 percent and 152 percent respectively on account of 71 percent increase in E-banking users.

    Moreover, credit card related transactions increased from 18 to 39 million showing an increase of 118 percent over a span of 4 years. Accordingly, the increase in complaints over the same period can be witnessed as concentrated in ATM/Debit Card, Account maintenance, E- Banking and Credit Cards.

    In terms of addressing the complaints, the resolution rate over the period 2016-2019 remained above 97 percent at each year’s end.

    The average time taken for resolution of complaints remained within regulatory turn around times. However, delays were observed in sending acknowledgments, interim and final responses.

    It may be mentioned here that banks being the first forum of redressal, have been handling 97 percent and above of the total complaints of the industry while less than 3 percent of complaints were escalated at higher levels including State Bank of Pakistan, Banking Mohtasib, and Pakistan Citizen Portal established by the Prime Minister Delivery Unit.

    In order to boost performance of complaint handling at banks and promote competition, SBP plans to further enhance the related disclosures which may include publishing of bank-wise complaint handling performance indicators in the near future by SBP.

    Currently, banks themselves are required to give disclosure about the complaint management in their annual audited account for public information.

  • Rupee ends firmer against dollar

    Rupee ends firmer against dollar

    KARACHI: The Pak Rupee ended firmer against dollar on Thursday as sufficient inflows of the foreign currency were available to meet import payment demand.

    The rupee ended Rs167.62 to the dollar from previous day’s closing f Rs167.63 in interbank foreign exchange market.

    Currency experts said that after ease in lockdown which resulted in improved economic activities the demand for foreign currency was increased especially for the import payment.

    They however said that the inflows in terms of remittances and export receipts helped the rupee to maintain levels.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • Persons not on ATL to pay advance tax on educational fee

    Persons not on ATL to pay advance tax on educational fee

    ISLAMABAD: Persons not appearing on Active Taxpayers List (ATL) are liable to pay advance income tax at the time of paying educational fee.

    Officials at Federal Board of Revenue (FBR) said that through Finance Act, 2020 the condition of paying advance tax under Section 236I of Income Tax Ordinance, 2001 on educational fee had been abolished for persons appearing on ATL.

    However, those persons not appearing on ATL shall remain required to pay advance income tax on payment of educational fee.

    Similarly, the educational institutions are required to provide details of those persons who are not ATL and making fee above Rs200,000 per annum.

    The rate of collection of tax under section 236I shall be 5 percent of the amount of fee for persons not appearing on ATL.

    The collection of advance income tax on payment of educational fee was introduced through Finance Act, 2013. The purpose of introducing the advance tax on such transaction was to bring those people into tax net who have taxable income but not paying their tax liability.

    The FBR officials said that after changes brought through Finance Act 2020, only those persons who are not on the ATL shall pay advance income tax.

    However, this tax shall be adjustable against income tax liability in case that person files his income tax return and ensure his name on the ATL.

  • LTU Karachi to hold e-Katcheri on July 24

    LTU Karachi to hold e-Katcheri on July 24

    KARACHI: Large Taxpayers Unit (LTU) Karachi will hold e-Katcheri on July 24, 2020 for efficient service delivery and ensure public trust.

    The program has been launched in compliance with the directive of the prime minister to conduct e-Khuli Katcheri to stay in contact with the public by all available means and provide them accessible platform to raise their issues for timely resolution.

    In this regard Badaruddin Ahmed Qureshi, Chief Commissioner Inland Revenue, LTUK Karachi will conduct e-Khuli Katcheri on Friday from 11:30 AM to 12:30 noon through Zoom video link.

    The taxpayers facilitation wing of the FBR recently circulated about the program directing that e-Katcheri would be conducted by every tier of FBR in the second week of every month on regular basis.

    The FBR directed all the tax offices to ensure that all proceedings of the e-Katcheri are property recorded and tasks should be assigned to concerned officers accordingly.

    The tax offices have also been directed to submit performance report on the outcome of the meeting with public.

    In the wake of COVID-19, the tax authorities shall conduct one e-Katcheri at all tiers of FBR in the second week of every month. In the backdrop of COVID-19, only e-Katcheris shall be conducted for the time being until normalcy of the situation.

  • SBP enhances financing limit to Rs2 billion for renewable energy schemes

    SBP enhances financing limit to Rs2 billion for renewable energy schemes

    KARACHI: The State Bank of Pakistan (SBP) has increased cumulative financing limit to Rs2 billion and also enhanced project size to 5MW.

    According to a statement issued on Wednesday, the central bank said it had enhanced the scope of its Refinance Scheme for Renewable Energy by allowing financing under category III of the scheme to solar and wind based energy sale companies.

    In light of the feedback received from stakeholders, the size of the project established by vendor/ supplier/ energy sale company has been enhanced from 1 MW to 5 MW. Accordingly, the cumulative financing limit has also been increased from Rs.1 billion to Rs.2 billion.

    SBP Financing Scheme for Renewable Energy was announced in June 2016with an aim to help addressing the challenges of energy shortages and climate change in the country.

    The scheme comprised of two categories: Category 1 allowed financing for setting up of renewable energy power projects with capacity ranging from 1 MW to 50 MW for own use or selling of electricity to the national grid or combination of both.

    Category II allowed financing to domestic, agriculture, commercial and industrial borrowers for installation of renewable energy based projects/ solutions of up-to 1 MW to generate electricity for own use or selling to the grid/distribution company under net metering.

    Later, in July 2019, SBP introduced a new Category III for facilitating financing to vendors/suppliers for installation of wind and solar systems/solutions of upto 1 MW. SBP also launched a Shariah complaint version of the scheme in August 2019.

    Since the introduction of the scheme, total outstanding financing under the Scheme has reached to Rs.15.6 billion for 217 projects having potential of adding 292 MW of energy supply.

    This revision in the scheme is expected to not only attract fresh local and foreign investment in the sector but also facilitate production of clean energy in the country, helping in managing climate change.

  • Stock market gains 104 points amid selling pressure

    Stock market gains 104 points amid selling pressure

    KARACHI: The stock market gained 104 points on Wednesday amid profit booking in scripts of many sectors.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,805 points as against 37,700 points showing an increase of 104 points.

    Analysts at Arif Habib Limited said that the market traded in a similar fashion as yesterday, whereby cement, fertilizer, banks saw profit booking / selling pressure, which was counterweighed by index heavy weights HUBC, ENGRO.

    Today MCB, HBL and Cement sector stocks (particularly LUCK) saved the day. ECC’s approval of Funds for construction sector gave Cement sector the reason to trade.

    International crude oil prices increased over the day, which helped E&P stocks staged recovery. Cement sector topped the volumes with 59.8 million shares, followed by O&GMCs (46.6 million) and Technology (40.2 million).

    Among scrips, HASCOL realized trading volumes of 21.2 million, followed by UNITY (20 million) and AGL (19.2 million).

    Sectors contributing to the performance include Cement (+79 points), Autos (+40 points), O&GMCs (+26 points), E&P (+20 points), Power (-37 points), Fertilizer (-25 points) and Insurance (-15 points).

    Volumes declined from 457.2 million shares to 405.5 million shares (-11 percent DoD). Average trade value also declined by 9 percent to reach US$ 106.2 million as against US$ 116.5 million.

    Stocks that contributed significantly to the volumes include HASCOL, UNITY, AGL, FCCL and MLCF, which formed 24 percent of total volumes.

    Stocks that contributed positively to the index include LUCK (+71 points), MTL (+28 points), PSO (+18 points), MCB (+16 points) and HBL (+14 points). Stocks that contributed negatively include HUBC (-35 points), UBL (-34 points), ENGRO (-16 points), TRG (-11 points), and EFUG (-8 points).

  • Rupee gains 27 paisas against dollar on improved inflows

    Rupee gains 27 paisas against dollar on improved inflows

    KARACHI: The Pak Rupee gained 27 paisas against dollar on Wednesday owing to improved inflows of export receipts and remittances.

    The rupee ended Rs167.63 to the dollar from previous day’s closing of Rs167.90 in interbank foreign exchange market.

    Currency experts said that improved inflows of export receipts and remittances helped the rupee to gain the value.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • Capital gain tax to be collected on July 30: NCCPL

    Capital gain tax to be collected on July 30: NCCPL

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday announced to collect capital gain tax for month of June 2020 on July 30, 2020.

    The NCCPL in a statement said that the aggregate amount of CGT arising on disposal of shares at Pakistan Stock Exchange for the period June 01, 2020 to June 30, 2020, would be collected on Thursday July 30, 2020 through respective settling banks of the clearing members, along with refund or adjustments on the basis of amount collected up to previous month.

    All Clearing Members are advised to ensure requisite amount in their respective settling bank’s account.

    Necessary details and reports for the said period have already been made available in the CGT System, the NCCPL said.

    Further, the aggregate amount of CGT arising on trading of future commodity contracts at Pakistan Mercantile Exchange for the period June 01, 2020 to June 30, 2020, would also be collected from the Pakistan Mercantile Exchange on Thursday July 30, 2020. Necessary details and reports for the said period have already been made available.

    Moreover, the aggregate amount of CGT arising on redemption of units of open end mutual funds have also been finalized for the period June 01, 2020 to June 30, 2020. Necessary details and reports have already been made available in the CGT System.

    The NCCPL further said that consequent to amendments introduced in section 37 A pertaining to adjustment of carry forward of losses for three years, net capital gains as on June 30, 2020 has been adjusted with net capital loss as on June 30, 2019 and accordingly any CGT collected thereon if any, shall be refunded/adjusted.

  • Banks, exchange companies no more required to give details of remittances sent abroad for education

    Banks, exchange companies no more required to give details of remittances sent abroad for education

    ISLAMABAD: Federal Board of Revenue (FBR) shall not ask banks and exchange companies to provide details of persons sending remittances abroad related to education.

    Through Finance Act, 2020, the Section 236R of Income Tax Ordinance, 2001 has been omitted. This section was introduced for collection of advance tax on education related expenses remitted abroad.

    This section was introduced through Finance Act 2015 under which banks, financial institutions, foreign exchange companies or any other person responsible for remitting foreign currency abroad shall collect advance tax at the rate of five percent from the payer of education related expenses.

    Tax collected under the section was adjustable against the income of the person remitting payment of education related expenses.

    The section defined “education related expenses” as tuition fee, boarding and lodging expenses, any payment for distant learning to any institution or university in a foreign country and any other expense related or attributable to foreign education.

    This section was an important source of gathering information of those persons having taxable income in Pakistan and sending foreign exchange abroad taking advantage of education expenses.

    Under Section 165 of Income Tax Ordinance, 2001, withholding agents are required to provide details of persons including CNIC, NTN and addresses, whose tax was deducted at the time of transaction.

    However, deletion of this section the banks and exchange companies would no more required to share details of persons who are sending foreign exchange abroad for education related expenses.